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OPERATION OF

Federal Reserve Bank
of Chicago




1919

FIFTH ANNUAL REPORT
TO THE

FEDERAL RESERVE BOARD

ANNUAL REPORT
of the

Federal Reserve Agent
of the

Seventh Federal
Reserve District
to the

Federal Reserve Board

COVERING THE CALENDAR YE'AR




19 19

DIRECTORS AND OFFICERS
OF THE

FEDERAL RESERVE BANK OF CHICAGO
FOR 1920

DIRECTORS
CLASS A
E. L. JOHNSON, Waterloo. Iowa
CHARLES H. MCNIDER, Mason City. Iowa

CLASS B
JOHN \V. BLODGETT, Grand Rapids. Mich.
A. R. ERSKINE. South Bend, Ind.
A. H. VOGEL, Milwaukee, Wis.

GEORGE M. REYNOLDS. Chicago, 111.

CLASS C
WILLIAM A. HEATH, Evanston, 111.

E. T. MEREDITH, Des Moines, Iowa
JAMES SIMPSON, Chicago, 111.

OFFICERS
W. A. HEATH, Chairman and Federal Reserve
Agent
JAMES SIMPSON, Deputy Chairman
W. F. MCLALLEN, Secretary and Assistant Federal
Reserve Agent
W. H. WHITE. Assistant Federal Reserve Agent
and Manager Department of Examinations
CHARLES G. RUTLEDGE, Assistant to the

Manager, Department of Examinations
JOSEPH M. CONWAY, Examiner
MARK A. WILSON, Examiner

F. R. BURGESS. Auditor
WALTER A. HOPKINS, Assistant Auditor
H. G. KAISER, Assistant Auditor
CHARLES L. POWELL, Counsel
FRANK M. HUSTON, Statistician

J. B. MCDOUGAL, Governor
C. R. MCKAY, Deputy Governor
B. G. MCCLOUD, Assistant to the Governor
S. B. CRAMER, Cashier
W. C. BACHMAN, Assistant Cashier
F. BATEMAN, Assistant Cashier
F. J. CARR, Assistant Cashier
KENT C. CHILDS, Assistant Cashier
J. H. DILLARD, Assistant Cashier
FRANK R. HANRAHAN. Assistant Cashier
DON A. JONES, Assistant Cashier
FRANK A. LINDSTEN, Assistant Cashier
WILBUR K. LYLE, Assistant Cashier
O. J. NETTERSTROM, Assistant Cashier
A. H. VOGT, Assistant Cashier
CLARKE WASHBURNE, Assistant Cashier
VANEMIN LAMONT, Acting Assistant Cashier
Louis G. MEYER, Acting Assistant Cashier
E. L. HARRIS, Manager Bank Relations and
Membership

DETROIT BRANCH
DIRECTORS
ROBERT B. LOCKE, Chairman
JOHN BALLANTYNE, Detroit
EMORY W. CLARKE. Detroit

JULIUS HAASS. Detroit
CHARLES H. HODGES. Detroit

OFFICERS
ROBERT B. LOCKE, Manager

JOHN G. BASKIN, Assistant Federal Reserve Agent
H. N. BAXENDALE, Acting Assistant Reserve Agent

WILLIAM R. CATION. Cashier

JOHN B. DEW. Assistant Cashier

MEMBER FEDERAL ADVISORY COUNCIL



JAMES B. FORGAN. Chicago, 111.

OPERATION OF THE

FEDERAL RESERVE BANK OF CHICAGO
IN 1919
N the first
from war
peace
I remarkableyear of readjustmentReservea Banktoofa Chicagofooting,
the operations of the Federal
made
a
showing when measured both by performance and

by financial results.
Features of operation, however, clearly indicate that such
readjustment is a slow and hesitating process, especially in a
district largely agricultural. While world wide conditions are
closely related with those of the Middle West, it is not easy to
discover any direct reflection of them in the attitude of the
people of this section as indicated by their disposition to indulge
in extravagant living, to disregard the necessity of thrift,
the imperative need for increased production and the conservation of credit.
The Middle West is a great producing section, largely agricultural but with manufacturing centers scattered all through it,
all contributing to feed and clothe Europe and to supply her with
raw materials and finished products. Necessarily the problems
of production, distribution and credit present themselves, and
these involve as factors seasons of growth as well as harvest and
transportation. The record of the Federal Reserve Bank of
Chicago for 1919 indicates in some measure the manner in which
these various problems have been or are being met and solved.
In reviewing the operations of the Federal Reserve Bank of
Chicago, attention is called to the grand total of the balance
sheet at the close of 1919, showing total resources of $974,270,255,
or more than $197,000,000 greater than the total resources at the
close of 1918, $573,364,510 greater than at the close of 1917, and
8.2 times the total resources at the end of December just preceding
our participation in the war. No other single total so well
expresses the magnitude of the service carried through the most
critical year (possibly excepting the period of actual warfare) in
longer than a half century.



It has been the endeavor to render the greatest possible service
to the business community, to the end that the liquidating
process necessary to bring the country back from a war footing
to a peace basis may be accomplished with the least possible
disturbance to business interests and to the country at large.
With this in mind, loans to and rediscounts for member banks
have been carefully watched and the effort has been made to keep
in touch with the general credit situation throughout the district as indicated by loans and discounts as shown in the reports
of condition by the commercial banks.
The Federal Reserve Bank of Chicago, in 1919, was able
not only to supply the legitimate needs of its own district but to
make large advances to other Federal Reserve Banks not so
fortunately situated. It also assisted materially in financing the
Treasury, through the flotation of more than its full quota of
Victory bonds, the banks of the district subscribing 18 per cent
of the Victory Loan and purchasing 14 per cent of the total Loan
Anticipation Certificates of Indebtedness and absorbing 13 per
cent of the total Tax Anticipation Certificates subscribed in
the country.
The transition from a war toward a peace footing has been
attended so far with little business disturbance. In the early part
of the year the sudden lessening of the demand for war materials
and the cancellation of war contracts by the Government, together with the slowness of payment on these contracts, in consequence of the enormity of the task, involved the use of such a
considerable amount of credit as to offset, in a measure, the
steady liquidation of war obligations. All through the year,
however, there has been in evidence resistance to attempts to
readjust prices and wages from a war-time level to a pre-war
normal, which necessarily finds its reflection to some extent in
the loan account at the banks. Higher wages and high prices
of materials call for the use of more money and credit in the conduct of business. The statistical record of operations of the
Federal Reserve Bank of Chicago reflects the effect of high
prices, low production, speculation and extravagance existing in
the Seventh Federal Reserve District.
The strain upon the banking system, due to conditions which
to some extent were controlled during the war, has been increased
with the relaxation from war-time economies and conservation.
There is little in the figures of the year 1919 which gives hope for
an immediate return to normal conditions until production begins
to overtake consumption and savings are accumulated to take
the place of wealth lost by waste and extravagance, and to increase the available supply of capital of which the world is so
greatly in need.
The character of the services performed in the year 1919 is
clearly depicted in the following resume of the operations of the
Federal Reserve Bank of Chicago and in the statistics and charts
accompanying this Report.



FINANCIAL RESULTS OF OPERATION
p
earnings for the Federal Reserve Bank of Chicago for the
J. year 1919 aggregated $12,012,077, while the total expenses
of the bank for the year 1919 aggregated $2,548,324 compared
with $1,495,002 the previous year. From the net earnings of
1919, there was charged off $820,000 as the estimated value of
buildings to be razed on the property purchased at the end of
1918 as the site for the future home of the Federal Reserve
Bank of Chicago.
The balance sheet as of December 31, 1919, shows $423,823,509
Total Earning Assets, compared with $247,091,416 at the close
of the previous year, $125,490,000 in 1917, and $26,475,000 at
the end of 1916. Total Resources shown were $974,270,255 on
December 31 last, compared with $777,187,612 at the end of
1918, $401,905,000 in 1917, and $118,790,000 at the close of 1916.
The capital account at the close of 1919 showed $12,347,150
paid in, compared with $11,185,050 paid in at the end of 1918.
The average capital paid in for the year was $11,685,000,
compared with $10,087,800 for 1918. The surplus account at
the close of 1919 was $14,291,642.
Total government deposits on December 31, 1919 were $350,003,
compared with $6,566,290 at the close of the previous year,
$3,052,000 at the close of 1917, and $2,045,000 at the closeof 1916.
The "Total Due to Member Banks—Reserve" at the close of 1919
was $257,978,903, against $230,604,383 at the end of the previous
year, $169,174,000 at the close of 1917, and $95,390,000 at the
close of 1916.
'
The balance sheet also showed $500,138,675 Federal Reserve
Notes in actual circulation at the end of 1919, against$428,820,115
at the close of the previous year.
The detailed Profit and Loss account balance sheet will be
found in the Appendix accompanying this Report, Schedules
1 and 2.
DISCOUNT OPERATIONS IN 1919
HE Total Earning Assets standing at $259,000,000 at the
beginning of 1919 was composed of $133,000,000 notes
collateraled by United States Government securities, $48,000,000,
Other Discounted Paper, $58,000,000, Open Market Bills and
$20,000,000—United States Securities Owned. On December 26
the Total Earning Assets stood at $427,000,000; composed of
$147,000,000 notes collateraled by United States Government
securities, $128,000,000 Other Discounted Paper, $108,000,000
Open Market Bills, and $44,000,000 United States Securities
Owned. In the early figures government securities appeared as
collateral in 51 per cent of total earning assets, while on
December 26, the high point reached by "Total Earning Assets,"
this percentage was 34 per cent.

T




5

Leaving out of consideration Investments, which show a steady
increase from $20,000,000 at the beginning of the year to $44,000,000 at the end, the total Bills Discounted and Bought was
composed principally of notes secured by Government obligations
in the early months, the percentages showing 55 per cent at the
low and 84 per cent on May 16, the high point. From this date
on this proportion diminished and at the end of the year had
declined to 38 per cent.
The removal of the preferential that had hitherto existed upon
Government obligations as collateral accounts for the failure of
notes thus secured to play an important part in the tremendous
advance sustained in loans during the last half of the year,
particularly in October, November and December. On July 3,
the total Bills Discounted and Bought amounted to $284,000,000,
partly made up of $208,000,000 Paper secured by United States
War Obligations. On December 26, Total Bills Discounted and
Bought amounted to $383,000,000 of which $147,000,000 was
Paper secured by United States War Obligations. This involved
a decline in percentage of from 73 to 38 during the last half cf 1919.
During the year 1919 there were approved 28,944 applications
for rediscount, for 951 banks, which compares with 22,864 applications approved for 850 banks in 1918. The bills discounted were
distributed by States as follows:
Bills Discounted for Member Banks
1919
Number of
Banks

1918
Amount

Number of
Banks

Amount

208
153
341
161
88

Total

168
125
333
128
96

$1,741,500,084
184,405,140
385,191,839
612,080,430
342,672,516

951

Iowa
Michigan
Wisconsin.

$2,254,681,713
273.937,050
547,590,970
1,216,159,567
263,942,845
$4,556,312,145

850

$3,265,850,009

Bankers' Acceptances aggregating $387,489,767 were purchased at rates running from 4 to 5*^ per cent. The number of
acceptors represented in these Acceptances was 214.
The total amount of advances to other Federal Reserve Banks
through the rediscount of their bills during the year 1919 aggregated $1,323,338,000. This was distributed as follows:
Atlanta
Boston
Dallas
Philadelphia
Richmond

$

Total




72,190,000
10,028,000
370,975,000
570,008,000
300,137,000

$1,323,338,000
6

DEVELOPING THE TRADE ACCEPTANCE MARKET SLOW

URING the year 1919 the Federal Reserve Bank of Chicago
made an extensive canvass through its member banks to
determine the development of the trade acceptance movement
in the Seventh District. The banks reported the volume of
trade acceptances offered for discount, as follows:

D

Many bills offered
Few bills offered
No bills offered.

28 banks
230 banks
581 banks.

As to the rate of discount accorded trade acceptances, 36 banks
granted a preferential rate and 221 banks took the bills at their
ordinary rate of discount. Among the replies received as to the
progress of the movement, 75 banks reported gains, while 713
banks reported no progress.
From another point of view the trade acceptance movement
has a more favorable appearance, namely, the trade acceptances
unpaid at maturity appear to be remarkably few, and the banks
generally throughout the district express a preference for trade
acceptances over the commercial notes in ordinary use.
Below is a table showing the trade acceptances rediscounted by
the Federal Reserve Bank of Chicago during the years 1917,
1918, and 1919.
1919

S 963 090
1,721.121
2,835.840
3.512,960

$

$6,589,389

Total

1918

$1 234 958
387,019
974,454
3,992,958

First Quarter
Second Quarter.
Third Quarter
Fourth Quarter

$9,033,011

$ 429,845

1917
8,609
43,387

138,700
239,149

OPEN MARKET FOR BANKERS' ACCEPTANCES GROWING

HE open market for Acceptances is gradually developing in
the Seventh District. A number of large banks in the Reserve
cities and some of the small banks outside of Reserve cities are
purchasing Bankers' Acceptances. The Federal Reserve Bank is
assisting in the development of an open market for Bankers'
Acceptances by purchasing such Acceptances with a 15 day
option to the broker to repurchase. The attitude, however,
has been to discourage direct offerings by member banks.

T

LIQUIDATION OF WAR PAPER
T IS problematical, of course, as to how long it will require for
the banks of this district to clear up their war paper, but this
is being urged and encouraged wherever possible without harassing
business.

I

RESTRICTIONS TO CHECK SPECULATION
r

I ^HE officers and directors of the Federal Reserve Bank of
1 Chicago have sought wherever possible to check speculation,
whether it be in the New York Stock Market, in commodities



or in real estate. The policy, however, has been to give assistance to member banks to care for their legitimate and seasonal
requirements and Government financing. In cases where banks
have shown a disposition to borrow continuously and heavily,
efforts have been made to obtain information as to current conditions and the reasons for this unusual demand. If it is found
that a bank is borrowing from the Federal Reserve Bank in order
to secure additional working capital, or for profit, the borrowing
bank is requested to liquidate its obligations.
TREND OF DEPOSITS
ET Deposits opened the year at [$211,000,000, gaining
an advance of $85,000,000 to the high point of the year,
$296,000,000 (July 18), before a recession set in which brought
the figures back to practically the place at which the upward
movement had started. The trend of deposits during the entire
year was irregular and unusual, due to the artificial conditions
produced by the consistently large borrowing of other Federal
Reserve Banks. Commercial banking experience, that deposits
grow with loans, was not followed in the Federal Reserve Bank
of Chicago, due to the fact that the proceeds of these advances to
other Federal Reserve Banks were not left on deposit as is the
case when members borrow, but were transferred through the
Gold Settlement Fund to other Federal Reserve Banks.

N

RESERVE POSITION CAREFULLY SAFEGUARDED
EMANDS upon the Federal Reserve Bank of Chicago, both
from member banks and from other Federal Reserve Banks,
were tremendous during 1919. From the highest point reached in the
Total Net Deposit and Federal Reserve Note Liability in 1918,
which was $644,000,000 on Friday, December 6, this item steadily
increased to $738,000,000 on December 26, using the weekly
figures exclusively. On the date of this high record, Cash Reserves against Net Deposits and Net Circulation Liability, stood
at 50.6 per cent. Cash Reserves against these two net liabilities
for the entire year averaged 63.5 per cent, while the average for
the first ten months of the year was 65.4. On three occasions
during the first ten months the Reserve percentage against Net
Deposit and Cash Liability fell below 60 per cent, namely June
20—59.7 per cent, June 21—59.9 per cent, and June 30—58.5
per cent.

D

The transfer of gold to other Federal Reserve Banks as proceeds of advances made to them for Acceptances bought and
notes and acceptances discounted in unusually large volume,
resulted in a rather sharp and steady decline in Reserve percentage beginning with the first week in November. The low
point in the Reserve percentage against Net Deposits and Federal
Reserve Note Liability was reached December 29, when it touched



49.2 per cent. The low weekly Reserve computed on Friday
was 50.6 per cent. The percentage against this combined
liability at the end of the year was 51.4 per cent.
The average Reserve by months in 1919 was:
January
February
March ___
April

68.3
71.1
67.3
..64.4

May
June
July
August

......64.8
....62.2
63.2
...63.5

September
October
November
December

64.9
.64.4
55.6
52.4

GROWTH OF MEMBERSHIP

appendix (Schedules 6 and 7),
the
the 19 national
application for
in the
I NoftheReserve Bank banks whose werewill be foundstock names
Federal
of Chicago
approved during 1919;

also the names and disposition of the 16 national banks which
surrendered their stock.
There were forty-four State Banks added to the membership
roll of the Federal Reserve Bank of Chicago in 1919, while six
State Banks retired from membership, making a net increase
for the year of 38 State Banks. This class of membership stood
at 326 banks on December 31, 1919. Of the six retiring banks
three became national banks. The division of new members by
States is: Illinois 5, Indiana 3, Iowa 6, Michigan 28 and
Wisconsin 2. There were 1048 National Bank members in the
Seventh District December 31, 1919.
The appendix contains names of new State Bank members and retiring State Banks, with disposition.
The following tabulation gives the total State Bank membership, according to States, in the Federal Reserve Bank of Chicago
at the close of the year 1919:
December 31, 1919

Illinois
_
Indiana
Iowa
Michigan
Wisconsin
Total

December 31, 1918
State

State

Totals

319
194
354
76
105

61
22
80
139
24

380
216
434
215
129

316
194
354
74
107

57
19
77
113
22

373
213
431
187
129

1048

326

1374

1045

288

1333

National

National

Totals

FIDUCIARY POWERS

the appendix lists
in this
district whose applications for fiduciary powers under SecSCHEDULE 10 in Reserve Act were the nationalbybanksFederal
tion 11 (K) of the
approved
the

Reserve Board during 1919. There were 54 such applications
divided among the States as follows: Illinois 15, Indiana 15,
Iowa 15, Michigan 4 and Wisconsin 5. Of these, 10 were applications for additional fiduciary powers. Banks having these
powers now number 146.




DEPARTMENT OF BANK EXAMINATIONS
WING to the fact that national banks areunderthe jurisdiction
of the Comptroller of the Currency and that state banks are
now and will remain under the jurisdiction of the various State
Banking Departments, growth of the Department of Examinations must of necessity be slow. While the department has
made direct examinations of both national and state member
banks, the field work has been confined largely to co-operative
examinations in connection with representatives of State Banking Departments, and credit examinations of state banks in
connection with their applications for membership.
During the year meetings were held separately with each of the
five State Banking Departments, with practically a full attendance of every member connected with each department. These
meetings resulted in a better understanding of the various matters
of mutual interest, and the visitors gained a better knowledge
of the Federal Reserve System and the operations of the Federal
Reserve Bank of Chicago. At the same time the officers of the
Federal Reserve Bank gained a much better idea of the conditions
which confront the operation of the various State Banking Departments. The relations existing between the Banking Departments represented in the Seventh District and our Examining
Department are pleasant and cordial and promise co-operation
to the fullest extent in increasing the efficiency of the work in
which there is mutual interest. The plan has been to lay the
foundation of the Examining Department along correct lines,
which may be extended as demands are made upon it.

O

STATE BANK RESERVES
H E discrepancy existing between reserve percentage against
deposits required by State Banking laws and those obligatory
under the Federal Reserve Act has been removed in the State
of Iowa for Iowa State Banks which become members of the
Federal Reserve System. Thus two States in this District,
Michigan and Iowa, have given recognition through their lawmaking bodies of the safety of smaller reserves for a bank which
has the resources of a Reserve Bank to draw upon in case of need.
The attitude of Banking Departments in the three remaining
States continues liberal toward the reserve percentages carried
by banks under their jurisdiction which have become allied with
the Federal Reserve System, but actual incorporation in their
State laws of sections covering this point has not yet been accomplished.

T

PART PLAYED IN GOVERNMENT FINANCING IN 1919

'""T'HE Seventh Federal Reserve' District was assigned a quota
1 of $652,500,000 of the Victory loan, or more than 14 per
cent of the total amount offered, $4,500,000,000. Total subscriptions were $772,046,550, 118 per cent of quota. Allotments
made aggregated $694,330,000. There were 2,267,411 individual



10

subscribers, with an average subscription of $340. To the
Fourth Liberty Loan there were 4,300,312 subscribers, averaging
$227 for each as compared with an average of $172 for 3,479,315
subscribers to the Third Loan.
Payment on the Fourth Liberty Loan was completed in January. By the end of the year payments on the Victory Loan had
all been completed excepting three individual accounts totaling
under $1,000, and deliveries of all notes had been made except
approximately $5,000,000 registered notes which had yet to be
received from the Treasury Department. Payments on the
Victory Liberty Loan were effected as follows: by cash,
$212,516,011.45; by credit in War Loan Deposit Account established by approved depositaries, $241,024,313.55; and by Certificates of Indebtedness, $240,789,000.
Final figures for the Victory Liberty Loan showing subscriptions, quota and per cent of quota subscribed by States (Illinois
divided into Cook County and outside Cook County) will be
found in the Appendix (Schedule 14); also classification of subscriptions according to denomination (Schedule 15); coupon
notes delivered by denomination (Schedule 16); and subscriptions
for the Victory Loan by cities having population of 25,000 or
more (Schedule 17).
The Liberty Loan Organization for the Seventh District
functioned satisfactorily, and the result is a fitting tribute to
those tireless workers who gave freely of their time and energy.
During the year 1919 the banks of the Seventh Federal Reserve
District purchased $1,001,727,000 "loan anticipation" certificates
of indebtedness, 14 per cent of the total amount purchased by the
banks in the entire country and $605,818,500 tax anticipation
certificates of indebtedness, 13 per cent of the total amount of
tax anticipation certificates sold in the entire country. All of
these certificates have matured or have been retired except
$180,623,000 loan anticipation and $246,390,500 tax anticipation
certificates. At the present time, therefore, 7XA per cent of the
total banking resources of this district are invested in United
States Treasury Certificates of Indebtedness. The organization
by which these certificates have been distributed was built upon
the county unit. Each of the 338 counties in the district is in
charge of two prominent resident bankers, who work closely
with the Director of Treasury Certificate Sales.
DEPOSITS OF TREASURY FUNDS WITH BANKS IN 1919

T

HE number of depositary banks increased during 1919 from
1,060 to 1,177. The maximum payment by credit to the
War Loan Deposit Account during the year was $143,062,704
on the occasion of the initial payment of the Victory Liberty
Loan. Total payments b y credit upon the Victory Liberty
Loar> were $242,055,211, more than one-third of the money
11




required on this account. Payments for Certificates of Indebtedness purchased by banks during the year were made by credit to
the amount of $1,021,000,000, which is 64 per cent of the certificates sold.
Approved collateral held by custodians as security for deposits
of Treasury funds reached a maximum on June 11, when the five
custodians, one in each State, held a total of $231,061,870. On
December 1 the minimum for the year was reached—$70,399,395.
WAR SAVINGS—1919
" I "HE work of the Federal Reserve Bank of Chicago in the
1 sale of War Savings Certificates and Stamps during the year
1919 has been chiefly concerned with education. Until August
1 the War Savings campaign was conducted on the State unit
plan. Thereafter the five State organizations were molded into
one District Organization with headquarters in Chicago.
Sales during the first nine months showed a steady decrease,
but from October 1 sales showed a decided increase. During
the months of October and November sales showed approximately
100 per cent increase over September sales. This increase is
attributed to the sale of the new Treasury Savings Certificates.
A complete tabulation of sales by months and States for the
entire year will be found in the Appendix (Schedule 17).
FEDERAL RESERVE NOTE ISSUE
HE volume of the Federal Reserve Notes of the Federal
Reserve Bank of Chicago in circulation at the first of the
year was $426,000,000, a figure reached after an expansion during
1918 of over $250,000,000. During the first half of 1919 this
figure never exceeded $426,000,000. In fact, there were two
rather substantial downward trends during this period. However, when pent-up buying power and the desire to employ it
resulted in a tremendous advance in consumption, commodity
prices and speculative operations, there was a correspondingly
heavy demand for circulation media. From the end of July,
during which month there was a reaction from the upward trend
that developed at the end of June, the rise in the Federal Reserve
Note item was sharp and continuous until the end of the year.
The net expansion for the year was $84,000,000, with Federal
Reserve Notes in actual circulation standing at $510,000,000
on December 26, 1919. (See Schedules 19 and 20, Exhibit B,
and Charts).
FEDERAL RESERVE BANK NOTE ISSUE
N December 31, 1918, there were outstanding $18,525,800 in
Federal Reserve Bank Notes. At the close of the year 1919
this item stood at $41,289,800. This expansion of more than
$20,000,000 in denominations of principally $1. and $2. can be
traced to the Pittman Act, under which Silver certificates were
withdrawn from circulation in order to use the silver dollars

T

O




12

released for settlement of adverse trade balances in the East, to
the increased demand for small bills, and to the policy of the
Treasury in withholding silver certificates from circulation in
order to use for minor coin the bullion resulting from the breaking
up of standing silver dollars back of the silver certificates. In
the Appendix will be found a table covering the amount of these
notes put into circulation and redeemed during the year.
At the close of the year there was $43,609,800 in United
States Securities on deposit with the United States Treasurer as
security for outstanding Federal Reserve Bank Notes.
POSITION OF COMMERCIAL BANKS
ONDITION of the commercial banks is fairly well reflected
in the summary of the reports of 107 selected banks in this
district as of December 26, 1919, which indicates that they were
borrowing approximately 78 per cent of their reserves. They
have borrowed $208,000,000, whereas, their reserves both with
Federal Reserve Bank and in vault were $265,000,000.
Considering that vault cash is not legal reserve and that almost $78,000,000 of the above figure was represented by vault
cash, it may be seen how heavily the banks are leaning on the
Federal Reserve Bank of Chicago at this time.

C

The interest rate on money for business bears a close relationship to the discount rate of the Federal Reserve Bank of Chicago
and, with a Ali per cent rate on Certificates of Indebtedness,
it is not thought that commercial paper will become any cheaper
than 5 54 per cent, at least for several months of the new year.
Other factors which no doubt will keep money firm for the next
few months are the continued strength of commercial and agricultural demand; the stagnation of agricultural credits that would
have been liquidated with better shipping facilities; the large
land settlements to be made in March — the aftermath of
tremendous speculation in land; and, finally, the completion of
the readjustment of war-time industries to a peace-time basis,
though the past year has seen considerable progress in this direction.
Meantime, there is a good market for commodities of all kinds
and the danger of excessive stocks is reduced, owing to the rapidity
of the turn-over of merchandise, and the average merchant's
belief that prices may commence to recede at any time.
FEDERAL RESERVE CLEARING SYSTEM
HE operations of the Clearing System of the Federal Reserve
Bank of Chicago continue to show a remarkable increase
in volume. During the year 1919 the daily average of items
handled by the Transit Department compared to the number
handled in the same period of the previous year, showed an increase of 106 per cent. The number of items drawn on banks



13

in Chicago increased 112 per cent, while the daily average of
items drawn on banks outside of Chicago increased 121 per cent.
There was an increase of 38 per cent in government checks
handled. The turn-over in December averaged daily 29,462
Chicago items and 121,663 outside items, or a total of 151,125
which, with 7,223 government checks, made a total average of
158,348. The largest volume in the history of the Transit
Department was handled on December 15, 1919, when the business comprised 240,132 items, composed of 41,712 Chicago items,
191,405 items on banks outside of Chicago and 7,015 government
checks.
There has been a marked increase in the number of banks on
the Par List of the Federal Reserve Bank of Chicago. At the
close of business December 31, 1919, 5,271 banks out of a total
of 5,564 in the Seventh District were on the Par List. Illinois,
Iowa, Indiana, Michigan were 100 per cent Par, all banks
in Illinois and Iowa going on the Par List November 1 and all
in Indiana December 1, while Michigan reached the 100 per cent
status December 31.
The Transit Department inaugurated a merit system recently
for the purpose of increasing the efficiency of the clerical force
and this has brought gratifying results in reducing the number of
errors in the sorting and listing of checks.
LEASED WIRE SYSTEM
WING to the volume of telegrams handled over the leased
wire system during the past year, additional facilities have
been acquired to the extent of approximately 2,500 miles, which
makes the total mileage of the system 12,500.

O

The Chicago-New York circuit was converted from a single
wire to a full duplex, or two-way wire (doubling its capacity);
branch banks were opened at Little Rock, Buffalo, Houston and
Nashville, all being connected with their parent banks by leased
wires; new wires were established between Chicago and Kansas
City, also Richmond and Baltimore, to provide for increased
business, which is being handled with great facility.
TRANSFER OPERATIONS
HE policy happily adopted in 1918 of promoting mail and
telegraphic transfers of credit for the better mobilization of
reserves, was continued throughout 1919. Uniform rates were
maintained of 15 cents discount per day per thousand—say
5^2 per cent per annum—for mail purchases and 7 ^ cents
discount per day per thousand for mail sales. Telegraphic
transfers were made without charge and member banks have
been encouraged to avail themselves of this great privilege for
the conservation of their reserves and the effective utilization
of their cash resources in all positions.

T




14

The year 1919 showed a gain of 31.8 per cent in the total of
transfers purchased by mail and by wire, the total being
$4,205,247,000, against $3,188,602,000. Sales of transfers by
mail and wire made a total of $1,115,010,000 against $498,329,000
an increase of 123 per cent for the year 1919. Total transfer
operations buying and selling by wire and by mail, amounted to
$5,320,257,000 against $3,686,931,000, an increase of 44.3 per
cent. Details of these transfer operations appear in the Appendix.
COLLECTION DEPARTMENT
HE Collection Department of the Federal Reserve Bank of
Chicago was established on July 1, 1917 and for the balance
of the year, as well as 1918, member banks did not use the service
which it provided to any considerable extent. Prior to July 1,
1918, a service charge of 10c per item was assessed, but, in order
to add to services made available to member banks, this charge
was waived thereafter. At the present time about 10 per cent
of the member banks use our collection facilities, though country
banks thus far have not shown much interest in the service.

T

The following table will afford an idea of the volume of business handled in the Department for the year 1919:
Received From
Member Banks, District No 7 outside Chicago
Discount Department
Total

Items

Amounts

31,209
4,789
13,245
9,117

$81,846,903
20,313.164
12,462,949
201,459,117

58,360

$316,082,133

Figures for 1918 are not available in a form which would make
a fair comparison, but with the daily increase in volume future
reports should be very interesting.
Returns at par can be
made for collections on points where there is a Federal Reserve
Bank or branch and there are in the neighborhood of threehundred banks in this district which remit at par for collections.
These par points, together with the par points available through
country banks in other district, afford a saving in collection costs
that cannot be ignored by the member bank which is interested
in using to the fullest extent the privilege to which membership
entitles it.
COLLATERAL DEPARTMENT
HE heavy volume of business in the Discount Department
of this bank made clear the necessity for the establishment
of a Collateral Department which would work closely in harmony
with the Discount Department, but maintain a strict individuality, this to enable the members of the department to concentrate
exclusively upon the careful handling of securities used or to be
used as collateral to loans to member banks. This department
was therefore separated from the Discount Department almost
15

T




a year ago, and since that time the collateral pledged to our
member banks' bills payable, together with that unpledged, has
been held in the custody of the Collateral Department.
During the past year Certificates of Indebtedness having
exceeded other forms of collateral, it has been necessary to
release for redemption and credit an average of $10,000,000 for
each maturing issue. For certain periods these maturities have
occurred every fifteen days. The average shipments of securities
for a weekly period total $25,000,000, made to two hundred
and fifty member banks.
The largest total amount of securities held in this department
during the year was reached on May 3, $195,300,000. • The total
securities held at the close of business December 31, 1919, was
$120,627,000.
GOLD SETTLEMENT FUND
AILY settlements through the Gold Settlement Fund continue to be advantageous to the Federal Reserve Banks in
settling accounts between each other, arid the Federal Bank of
Chicago has participated in these benefits. The schedules in
the Appendix relating to the operations of the Gold Settlement
Fund are divided into the representation of our gain or loss through
three kinds of operations.

D

The summary of the year's transactions in all accounts results
in net gains through settlements and direct transactions,
$988,837,000 and $29,638,000. respectively. Against these credits
there stands a loss of $1,048,769,000 or a net loss for the year of
$30,294,000. Balance in the Gold Settlement Fund standing
to the credit of the Federal Reserve Bank of Chicago on December
31, 1919, was $76,478,000.
FOREIGN ACCOUNTS

U

N T I L after the middle of the year 1919 no new foreign
accounts were established by the Federal Reserve Bank of
Chicago, the so-called Bank of England Sterling Gold Account
being still on our books at $816,042.43. This account was closed
out on April 2, 1919, and for three months no transactions in
this direction were consummated. On July 17, by arrangement
with the Federal Reserve Bank of New York, this bank participated to the extent of $11,018,766.56 in a credit to the Argentine
Republic, and on September 17 the Bank of England Sterling
Gold Account was reopened with a balance of $5,412,154.05.
The Bank of England Account reached the high point of $17,422,349.63 on November 12 and closed the year at $15,627,105.15.
The Argentine Republic Account was gradually reduced from the
initial amount to the figure $8,602,992.69 on October 31, which was
maintained up to and including the end of the year.



16

BANKING QUARTERS

URING the year considerable attention has been given to
the making of plans for the allotment of space to the different
departments of the bank in the new building, the site for which
was purchased during 1918, located at La Salle, Quincy and
Jackson Streets. The tremendous expansion in the volume of
business, however, in the meantime has made it necessary to
acquire temporary quarters, which provide an additional floor
space of 25,000 square feet. When it is noted that more than
300 employees were added to the clerical force during the year
the necessity for this unusual increase in floor space is evident.
At the beginning of 1919 the floor space occupied by the
bank proper, as well as its Fiscal Agency Department, covered
60,000 square feet. The expansion in required floor space was
made necessary chiefly by the growth of the Transit Department
and, as a matter of fact, due to the falling off in the volume of
Fiscal Agency operations, considerable floor space formerly
occupied by these functions has been given over to departments
of the bank proper.

D

INTERNAL^ORGANIZATION
' ~ p H E personnel of the Board of Directors of the Federal Reserve
J. Bank of Chicago for the year 1919 was as follows: Class
A—James B. Forgan. E. L. Johnson, and George M. Reynolds;
Class B—John \V. Blodgett, A. R. Erskine and A. H. Vogel;
Class C—William A. Heath, E. T. Meredith and James Simpson.
For the year 1920 the Board will remain the same with the exception of James B. Forgan, whose term expired December 31,
1919, and who has been succeeded by C. H. McNider of Mason
City, Iowa. The Chairman of the Board and Federal Reserve
Agent remains the same as in 1918. The Board held its usual
regular monthly meeting during the year.
The Executive Committee for the year 1919 was composed of
James B. McDougal, Governor, James B. Forgan, George M.
Reynolds, James Simpson and the Federal Reserve Agent. This
committee will serve during the year 1920 with the exception of
James B. Forgan, who has retired from the Board and whose
successor has not as yet been appointed. The committee held
two regular meetings each week during the year. The Membership Committee is composed of the Federal Reserve Agent, James
B. McDougal and A. H. Vogel, a director.
There were no changes in the official staff until the December
meeting of the Board, at which time three new official positions
were created. E. L. Harris, formerly in charge of Sales of
Certificates of Indebtedness, was elected an official with the title,
Manager of Bank Relations and Membership; W. K. Lyle,
formerly Chief Clerk, and W. C. Bachman, formerly Transit
Manager, were elected Assistant Cashiers, continuing in their
former capacities; W. F. McLallen, Assistant Federal Reserve
Agent, was reelected Secretary of the Board of Directors.



17

The Detroit Branch had for its directors for the year 1919,
John Ballantyne, Emory W. Clark, Julius H. Haass, Charles
H. Hodges and R. B. Locke. The officers are: R. B. Locke,
Manager and Chairman of the Board, W. R. Cation, cashier
and J. B. Dew, assistant cashier. The Federal Reserve Agent
is represented at the Detroit Branch by John G. Baskin as Assistant Federal Reserve Agent, and H. N. Baxendale, Acting Assistant
Federal Reserve Agent.
The following new departments were created and put into
operation during the year: Bank Relations and Membership,
Planning, Educational and Welfare. The first-named department
will greatly facilitate the handling of bank relations and further
promote a better understanding between the banks of the Seventh
District and the Federal Reserve Bank, in addition to being
of added service to banks considering membership. The Planning
Department is an internal Department having supervision over
all systems in use, and in addition thereto it will act in an advisory
capacity to all other departments in changing or installing
systems. The Educational Department will have control of all
educational matters pertaining to the personnel of the bank and
when functioning to its fullest extent it will school all new employees in the work to which they have been designated. The
Welfare Department cares for the physical and mental well-being
of the employees and it is generally responsible for the proper
morale of the organization. The Statistical and Analytical Department, started in 1918, was expanded and took over the work
of compiling statistical information other than departmental,
both for the Board at Washington and for our own officers and
members. This department is designed to function with the
Division of Analysis and Research and the Statistical Division
of the Federal Reserve Board.
There were added to the staff of the Department of Examinations early in 1919 through appointment by the Federal Reserve
Board, Mark A. Wilson, formerly an Examiner for the State of
Indiana and Joseph M. Conway, formerly an Examiner for the
State of Michigan.
At the beginning of the year 1919 there was a total of 833
employees on the payroll, and at the close of business December
31, 1919, our records show 1,193 employees, including officers,
an increase of 43 per cent.
DETROIT BRANCH IN 1919

D

URING the -year the Detroit Branch of the Federal Reserve
Bank of Chicago has fulfilled with satisfaction the functions
assigned to it by the Board of Directors on November 27, 1917.
The first full calendar year of its operation, 1919 has justified
in every way its creation.
On February 1, 1920 the Detroit Branch will begin to enjoy
all the functions of a Federal Reserve Bank, except that of note




18

issue and a few minor functions. Control will be vested in the
Board of Directors of the Federal Reserve Bank of Chicago, who
will appoint directors and officers of the Branch, to serve at the
pleasure of the Board. Supervision of the accounts of the Branch
will be assigned to the Auditor of the Federal Reserve Bank of
Chicago.
The territory in which the Branch will operate consists of
the following Michigan counties:
Bay

Genesee
Hillsdale
Huron
Ingham

Jackson
La peer
Lenawee
Livingston
Macomb

Monroe
Oakland
Saginaw
Sanilac
Shiawassee

St. Clair
Tuscola
Washtenaw
Wayne

Figures pertaining to the operations of the Branch are contained
in the Appendix (Schedules 26 to 33). It will be of interest to
note the large increase in all departments for the second six months
of 1919 as compared with the first six months.




19

APPENDIX
E X H I B I T A.—Movement of principal earning assets of the Federal Reserve Bank
of Chicago during the calendar year 1919.
IN THOUSANDS OF DOLLARS
Discounted Paper
Other
secured
Disby U. S. counted
W a r obliPaper
gations

(1+2)

Total
Bills
Bills
Bought Discount- U. S.
in open ed and
Securicent Market Bought
ties
Per

Total
earning
assets

l=3
-2

1

3
4

5

6

7

8

Jan. 3
Jan. 10
Jan. 17
Jan. 24
Jan. 31._

$132,963
125,924
108,632
138,253
128,125

$48,851
38,653
33,355
34,221
25,740

$181,814 73.1 $ 57,880 $239,694
164,577 76.5
212,518
47,941
141,987 76.5
176,680
34,693
172,474 80.1
204,223
31,749
153,865 83.3
184,286
30,421

$20,122 $259,816
242,649
30,131
197,803
21,123
229,346
25,123
206,408
22,122

Feb. 7
Feb. 14
Feb. 20
Feb. 28

$128,253
131,878
154,870
162,708

$25,749
20,812
17,952
15,861

$154,002
152,690
172,822
178,569

83.2
86.4
89.6
91.1

$31,458 $185,460
187,399
34,709
206,071
33,249
211,245
32,676

$22,122
21,122
21,122
21.122

$207,582
208,521
227,193
232,367

Mar.
Mar.
Mar
Mar.

7
14
21
28

$155,544
152,165
191,704
199,278

$15,219
13,336
14,903
15,367

$170,763
165.501
206,607
214,645

91.1
91.9
92.7
92.8

$32,586
51,802
49,253
41,214

$203,349
217,303
255,860
255,859

$21,088
21,089
21,088
21,089

$224,437
238,392
276,948
276,948

Apr. 4
Apr. 11
Apr. 18
Apr. 25

$206,595
202,040
200,298
195,872

$16,545
16,134
17,701
16,510

$223,140
218,174
217,999
212,382

92.6
92.6
91.0
92.2

$39,291
31,173
27,548
24,556

$262,431
249,347
245,547
236,938

$21,088
22,088
23,089
24,088

$283,519
271,435
268,636
261.026

May
May
May
May
May

$209,305
200,037
202,391
201,723
228,140

$14,473
14,266
13,184
14,882
18,604

$223,778
214.303
215.576
216,606
246,744

93.5
93.3
93.9
93.1
92.4

$26,306
23.952
24,412
28,332
27,640

$250,084 $24,088
25,088
238,255
25,088
239,987
25,088
244,937
26.119
274,384

$274,172
263,343
265,075
270,025
300,503

$195,120
192,979
213,504
200,427

$16,197
16,574
21,980
21,824

$211,317
209,553
235,484
222,251

92.3
92.1
90.7
90.2

$32,776
34,236
37.722
40,463

$244,093
243.789
273,206
262.714

$27,088 $271,181
270,877
27,088
301.294
28,088
291,802
29,088

July
July
July
July

$208,412
3
188,205
11
183,427
18._.. ...
..
191,632
25._

$30,199
32,323
29,228
24,313

$238,611 87.3
220.528 85.3
212,655 86.2
215,945 88.7

$45,802
50,887
53,524
56,016

$284,413
271.415
266,179
271,961

$30,089 $314,502
30,089
301.504
31,088
297,267
31,089
303,050

Aug.
Aug.
Aug.
Aug.
Aug.

1
8
15
22
29

$193,391
186,386
158,584
188,450
185,258

$26,223
26,477
24,576
20,025
20,528

$219,614
212,863
183,160
208,475
205,786

$50,800
52,452
49,943
45,722
46,169

$270,414 $33,088
265,315
34,088
233,103
86,089
254.197
37,089
251,955
38,283

Sept. 5
Sept. 12
Sept. 19
Sept. 26

$192,490
137,833
139,657
172,455

$21,965
27,925
32,371
46,091

$214,455 89 7 $43,067 $257,522
165,758 83.1
209,855
44,097
172.028 81.1
214,995
42,967
218,546 78.9
261,317
42,771

Oct.
Oct.
Oct.
Oct.
Oct.

3
10
17
24
31

$181,605
165,002
179,599
186,790
173,740

$52,749
48,903
46,155
57,022
57,917

Nov.
Nov.
Nov.
Nov.

7
14
21
28

$170,269
180,944
169,345
176,503

Dec
Dec.
Dec.
Dec.

5
_
12
19
26

$173,759
143,316
135.715
146,840

2
9
16
23
29

June 6
June 13
June 20
June 27

„

88.1
87.5
86.6
90.4
90.0

$303,502
299,403
319,192
291,286
290,238

$39,312
108,119
46,119
42,304

$296,834
317,974
261,114
303,621

$234,354 77.5
213,905 77.1
225,754 79.5
243,812 76.6
231,657 75.0

$38,557 $272,911 $45,317
254,731
46,693
40,826
267,760
44,349
42,006
287 170 44,999
43,358
295,898
44,510
64,241

$318,228
301,424
312,109
332,169
340,408

$51,825
72,097
81,449
88,956

$222,094 76.7
253,041 71.5
250,794 67.5
265,459 66.5

$92,402
103,674
102,054
99.923

$314,496 $44,182
356,715
44,258
352,848
44,962
365,382
44,713

$358,678
400,973
397.810
410,095

$87,854
105,052
107,984
128,429

$261,613 66.4
248,368 57.7
243,699 55.7
275,269 53.3

$95,063 $356,676
346,104
97.736
349,616
105.917
383,621
108,352




20

$44,380
44,318
44,362
44,230

$401,056
390,422
393,978
427,851

FEDERALRESERVEBAtiKOFCHICAGO
MOVE M Eh T OrEARNIliGASSETS
DURItiOCALENDAR YEAR 1319,
ISO
100

A

so

§
ISO
100

so
0

UNITED STATES SECURITIES.

*
At7CEP1 ANC£S 3 OUG
fir
CO
90
60
40

100

20
0

20

so
60
40

PERCENTAGE 0E WAR PAPER TO TOTAL DISCOUNTS
300

300

100

so

SO
TOTAL BILLS DISCOUNTED/D; AffP WAR PAPER/W-

450




TOTAL EARNING ASSETS.

21

0

E X H I B I T B.—Movement of gold and cash reserves, Federal Reserve note and net
deposit liabilities, and the reserve percentage of the Federal Reserve Bank of Chicago
during the calendar year 1919.
IN THOUSANDS OF DOLLARS

Net
Deposits

(3+4)

Ratio of
cash reserves to
net deposit
andFederal
Reserve
note
liabilities
combined

Gold
Reserves

Cash
Reserves

Federal
Reserve
notes in
actual
circulation

3....
10..
17..
24..
31..

$406,609
409,906
447,742
419,898
441,678

$408,554
411.988
450,180
422,196
443,740

$426,129
420,457
412,859
410,265
405,026

$211,366
203,429
204,345
210,913
213,979

$637,495
623,886
617,204
621,178
619,005

64.1
66.0
72.9
68.0
71.7

Feb. 7.__
Feb. 14..
Feb. 20..
Feb. 28..

$441,046
467,762
450,016
448,346

$442,781
469,158
451,291
449,722

$407,665
409,884
410,057
410.806

$211,470
236,348
236,584
239,170

$619,135
646,232
646,641
649,976

71.5
72.6
69.8
69.2

Mar. 7....
Mar. 14..
Mar. 21..
Mar. 28..

$464,602
447,052
416,088
403,588

$465,715
448,266
417,509
404,794

$415,139
417,611
418,932
417,546

$242,123
235,518
240,926
229,188

$657,262
653,129
659,858
646,734

70.9
68.6
63.3
62.6

Apr. 4.
Apr. 11....
Apr. 18._..
Apr. 25.__

$386,249
417,065
422,944
424,901

$387,230
418,435
424,297
426,222

$425,120
425,279
423,145
426,455

$209,953
228,146
234,042
224,317

$635,073
653,425
657,187
650,772

61.0
64.0
64.6
65.5

May
May
May
May
May

2
9
16..
23..
29._

$425,978
441,452
443,837
434,686
404,006

$427,105
442,598
445,123
435,738
404,934

$422 296
424,024
422,396
419,554
422,327

$241 781
243,985
249,702
247,358
244,420

$664,077
668,009
672,098
666,912
666,747

64.3
66.3
66.2
65.3
60.7

June
June
June
June

6
13..
20..
27..

$415,315
411,499
386,522
404,093

$416,640
412,646
387,524
405,202

$421,046
418,271
417.700
421,672

$227,786
225,630
230,995
235,131

$648,832
643,901
648,695
656,803

64.2
64 1
59.7
61.7

July
July
July
July

3..
11
18
25

$421,900
422,788
462,999
426,828

$422,755
423,552
463.974
427,781

$429,248
427,211
420,685
423,393

$266,269
255,196
296,723
262,599

$695,517
682.407
717,408
685,992

60.8
62.1
64.7
62.4

Aug. l.__
Aug. 8._.
Aug. 15..
Aug. 22..
Aug. 29._

$415,409
426,568
415,588
446,999
457,835

$416,365
427,442
417,217
448,154
458,735

$420,314
431,735
429,140
434,786
439,744

$252,503
246,972
258,131
253,866
257,221

$672,817
678,707
687,271
688,652
696,965

61.9
63 0
60.7
65.1
65.8

Sept.
Sept.
Sept.
Sept.

$445,048
439,153
458,965
443,185

$445,891
440,252
460,007
444,280

$444,845
447.265
447,173
'450,048

$244,540
236,355
218,172
241,036

$689,385
703,620
665,345
691,084

64.7
62.6
69.1
64.3

Oct. 3....
Oct. 10..
Oct. 17..
Oct. 24..
Oct. 31..

$439,557
474,873
459,308
437,639
438,644

$440,617
475,963
460,562
439,076
440,571

$457,059
462,546
462,597
463.729
460,397

$243,411
255,781
249,808
247,002
259,099

$700,470
718,327
712,405
710,731
719,496

62.9
66.3
64.6
61.8
61.2

Nov.
Nov.
Nov.
Nov.

$433,040
381,397
373,567
367,482

$435,407
383,816
375,971
369,871

$467,103
464,896
468,708
475,062

$265,320
258,298
243,234
243,466

$732,423
723.194
711,942
718,528

59,4
53.1
52.8
51.5

$364,461
395,255
373,251
372,355

$367,176
398,140
375,391
374,184

$480,334
485,203
498,174
510,018

$225,506
241,553
207,654
228,842

$705,840
726,756
705,828
738,860

52.0
54.8
53.2
50.6

Jan.
Jan.
Jan.
Jan.
Jan.

Dec
Dec.
Dec.
Dec.

5....
12..
19..
26..

7...
14.
21..
28..
5.__
12._
19._
26..




22

FEDERALRESERVtBANKOf'CHICAGO
NET DEPOSIT LIABILITY.
FR NOTE CIRCULATION.
CASHRESERVESJNP RESERVERATtO.im

I

K

I

80
70
60
50
40
30
20
10
0

80
?0
60
SO
40
30
20

RESERVE MTIO, (PERCENTAGE OFC+L).

F.R. riOTE CIRCULATION.
800i

800

700

POO

€00

600

500

DEPOSITAUD F.R.riOTEUABIUTIES.'L-, AltPTOTAL RESER/ES/C-.
J/t




A(/6\SEPT\OCT\

23

SCHEDULE 1.—Balance sheet—Comparative statement of condition of the Federal
Reserve Bank of Chicago.
Dec. 31, 1919 Dec. 31, 1918 Dec. 31, 1917 Dec. 31, 1916
ASSETS
Bills discounted, members
Bills discounted, bought
United States bonds and notes
Total earning assets
Real estate (site for new building)..
Interest accrued on U. S. bonds
Premium on United States bonds...
5 per cent redemption fund against
Federal Reserve bank notes
Liberty Loan bonds, $10 participation certificates
Furniture and Fixtures
Cost of unissued Federal Reserve
notes.
Due from member banks, overdrafts
Due from Federal Reserve banks
Federal Reserve Banks, transfers
Transit and exchanges for clearing
Federal Reserve and National Bank
Gold coin and gold certificates
Bank of England sterling gold
account
Other lawful money.
Gold settlement fund
Gold with Federal Reserve Agent....
Gold redemption fund Federal
Reserve notes

$286,908,175
92,650,234
44,265,100

$164,088,997
62,880,918
20,121,500

$105,923,175
9,182,429
10,384,600

$ 4,437,460
10,337,161
10,375,100
1,325,760

$423,823,509

$247,091,416

$125,490,205

$ 26,475,482

2,116,149

2,936,149

380,865

86,001

63,695

50,896
193,311

1.888,150

829,390

2,850

9,450

163,100

28,304
67,957

6,648
66,882,527
3,570,000
51,350,405

30,941
26,784,494
6,565,000

330,615
5,992,720

1,723
29,913,819

8,178.412
19,868,657

4,692,553

42,358,644
24,181,000

41,060,921
26,819,995
23,234,185

10,635,500
32,189,305

2,986,185
27,600,625

15,627,105
1,920,443
76,478,739
243,604,230

816,042
1,797,544
106,772,373
275,803,010

7,350,000
963,872
58,960,460
130,723,530

396,102
26,183,000

19,533,109

15,151,205

646,490

200,000

Total cash reserve
Other assets

$381,344,627
545,878

$423,574,360
1.399,491

$230,833,657
349,181

$ 54,379,727

•Total assets

$974,270,255

$777,187,612

$401,905,745

$118,789,962

$ 12,347,150
14,291,642

$ 11,185,050
3,316,022

$ 9,091,700
215,799

$ 6,683,550

97, 571
1,417,073

3,100.223
89,248
514,586

77,603
318,087

196,644
40,429
535,459,230

19,612
1,784
450,938,010

4,833
254
190,788,530

41,289,800
200,000

18,525,800
3,700,116

1,471,347

2,850
58,211,397
350,003
43,258,856
257.978,903
525.711
8,602,992

9,450
32,545,315
6,566,290
14,743,259
230,604,383
1,328,460

163,100
18,183,306
3.052,436
6.165,983
169,174,348
3,198,413

2,045,784
14,550,742
95,390,012

$974,270,255

$777,187,612

$401,905,745

$118,789,962

LIABILITIES
Capital paid in
Profit and Loss...
Reserve for franchise tax
Discount on United States bonds....
Unearned discount
Unearned interest, investments
Reserved for sundry expenses
Difference account
Federal Reserve notes outstanding..
Federal Reserve Bank notes outstanding
Federal Reserve Bank transfers sold
Liberty loan $10 participation
certificates sold
Uncollected funds. _
United States Government deposits
Due to Federal Reserve Banks
_
Due to member banks, reserves
Due to non-member clearing Banks
Due to foreign agencies...
•Total liabilities

*In tabulating the Balance Sheets for comparison cents have been omitted.




24

61.978
46,451
6,051
5,391
—

-

SCHEDULE 2.—Profit and loss statement of Federal Reserve Bank of Chicago
covering 1919, 1918, 1917, 1916.
1919

1918

Earnings for year..
$12,012,077
Net service charges in excess of Transit Department disbursements ...
Total earnings

1917

$8,481,747

1916

$2,020,714 $665,935

*155,672

1.564

$12,012,077

$8,326,075

$2,022,278 $665,935

Expense of operation of bank proper
$ 1,787,154
Other expenses
Cost of Federal Reserve currency issued (includingpostage, etc.)
400,418
Cost of Federal Reserve currency unissued
(charged off)
62,558
Miscellaneous charges account note issues.Taxes on Federal Reserve bank note circulation
133,970
Cost of currency shipments to and from member
and non-member banks._
66,144
98,080
Furniture and equipment

$1,093,317

$ 317,113 $232370
929
246

375,002

159,824

13,679
13,004

43,001
2,314

32,225
237,118

Depreciation on United States Bonds _

5,113

25,000

$ 2,548,324

$1,229,751

$6,805,081

$1,229,751 $403,205
20,091
61,978

$ 8,576,203

$6,805,081 t$l,293,856

$

Net earnings for year. __

$ 792,526 $262,730

$6,831,073
25,992

$ 8,576,203

Less miscellaneous deductions

$1,495,002

$ 9,463,753
£887,550

$ 603.602
1,033
6,200,446

Amount paid by Federal Reserve Bank of
Minneapolis January 30, 1917, to equalize
stock of said bank transferred to Federal
Reserve Bank of Chicago capital stock ..
Net income
Dividends paid
....
Interest paid on Capital Stock surrendered
Profit and Loss December 31

$403,205

2,127
699,000
1,806
7,875,397

$423,296

$ 862,131 $360,648
126
669
431,598
61,978

•Deduct from earnings. Figure represents cost of operation of Transit Department in excess
of service charges which were discontinued June 15, 1918.
tDividends paid on June 29, 1917, covered the period from January 1, 1916 to June 30,
1916, inclusive, and amounted to $205,710. Dividends paid on December 29, 1917, covered the
period from July 1, 1916 to December 31, 1917, inclusive, and amounted to $654,347.
XIncludes $820,000 estimated value of buildings to be razed—charged off.
$66,764 Federal Reserve Board assessment for expenses, January 1, 1920, to
June 30, 1920, charged off.
$786 net difference charged off.

SCHEDULE 3.—Operations of the leased wire service of the Federal Reserve
System, headquarters at Chicago. Telegrams handled January 1 to December
31, 1919, inclusive.
Banks
Boston.
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco.
Federal Reserve Board.
Total




Sent
by

Received
by

Relayed
by

Handled
by

11,056
54.702
14,615
26,106
19.306
20.854
35,265
27,253
10,170
31,247
22,865
25,998
53,233

9,599
53,779
10.391
20,205
20,777
20.598
47,532
21,138
12.460
22,987
24,425
29,514
69.944

159,833

70,659

20,646
108.511
25,006
46.311
40,083
41.452
244,630
48,391
22,630
54,234
47,290
55,512
193,836

352.670

363,349

230,492

948.532

SCHEDULE 4.—Discount Rates.—Federal Reserve Bank of Chicago, 1919.
Rates
Change effective
Rates
in effect
in effect
Jan 1, Apr. 4. Apr. 21, Aug. 29. Nov. 5, Dec. 13, Jan. 1,
1919
1920
1919
1919
1919
1919
1919
Vlember bank's Collateral Notes
—1 5 days or less
Secured by
Treasury Certificates of In-

4

Liberty Bonds and Victory-

4Y2
AH

4
4

Eligible paper..
War Finance Corp. Bonds

4%
4%
5%

4y2

4]/±
5

4%
4%
5%

Rediscounts: Maturing within
15 days
Secured by
Treasury Certificates of In4
debtedness.. _
*4y2
4
4lA
4%
Liberty Bonds and Victory
4
Notes
4H
4%
4Y2
War Finance Corp. Bonds
5
5j|
Otherwise secured and un4
secured
4y2
4H
4M
Maturing within 16 to 90 days
Secured by
Treasury Certificates of Indebtedness
4y2
4M
Liberty Bonds and Victory
Notes
4y2
4M
4%
War Finance Corp. Bonds ...
Otherwise secured and unsecured _
4M
4U
Vlaturing within 91 to 180 days
Agricultural and live stock
paper
Trade Acceptances
4
Maturing within 1 5 days
4*
4K
4H
Maturing within 16 to 90 days .
4y2
*Rate of 4yi percent on paper secured by 4\i percent Treasury Certificates.
1Rate of 4 percent on paper secured by Fourth L'berty Loan bonds when paper rediscounted
was taken at rate not exceeding coupon rate on bonds

*2S

SCHEDULE 5.—Money Rates in Chicago at Commercial Banks in 1919
January.

February.

March.

April.

May.

June.

Low. High. Low. High. Low. High Low. High. Low. High. Low. High.
Demand money.Commercial paper
Brokers' 6 months'
paper
Year money
Notes secured by
certificates of indebtedness

7
6

5
5
5

4316

5*

6
5y2

5

5

5

July.

7

4M

7

•>y2

4M

b

6 *
4M

b
b

5

5

5

5

August.

7
6

18

7

6

4%

4:i,o

5

5

7

b

4*4,

6

5

5

5

5%

2

September.

4%

5

October.

November.

December

Low. High. Low. High. Low. High. Low. High. Low. High. Low. High
Demand money...
Commercial paper
Brokers' 6 months'
Acceptances
Motes secured by
certificates of indebtedness

7

7

4%

7

4%

4%

7

4?i

7

b

4%

5lA

6

5

5

5

•>y2

6
5

4%

6

5

5

5




4%
5

26

5

5

5
6

7
6
6
6

'

SCHEDULE 6.—Member Banks in Federal Reserve District of Chicago authorized
to accept up to 100 per cent of their individual capital and surplus during 1919.
Application to accept 100%.

Location
Chicago, 111.
Chicago, 111.
Detroit, Mich.

Live Stock Exchange National Bank
Chicago Trust Co
First & Old Detroit National Bank..

Approved
March 14, 1919
Oct. 24, 1919.
Dec. 2, 1919.

SCHEDULE 7.—New national banks, 1919
First Na tonal Bank
First Na ional Bank._
The Nat onal Trust Bank,
First Na ional Bank._
First Na ional Bank.
First Na ional Bank
First Na ional Bank
First Na ional Bank
Citizens National Bank

Altona, 111.
Barrington, 111.
Charleston, 111.
Fairmount, 111.
Foosland, 1 1
1
Hinsdale, III.
Lemont, 111
Oak Park, 111.
Toluca, 111.

Cedar Grove National Bank._
Farmers .National Bank
Farmers & Merchants National Bank..
First National Bank._

Cedar Grove, Ind.
Remington, Ind.
Rensselaer, Ind.
Roanoke, Ind.

First National Bank._
Webster County National Bank
First Wisconsin National Bank .
Farmers National Bank

College Springs. la.
Fort Dodge, la.

First National Bank
National Union Bank

Chesaning, Mich.
Jackson, Mich.

Milwaukee, Wis
Sparta, Wis

SCHEDULE 8.— National banks liquidated in 1919.
Name of Bank.
The Second National Bank.
First National Bank.
First National Bank...
Farmers National Bank
Ridgely National Bank
Farmers National Bank.._
Wayne National Bank.
First National Bank.
First National Bank..
South Bend National Bank
First National Bank
National State Bank
Commercial National Bank
First National Bank..
Wisconsin National Bank
Commercial National Bank.




Location.
Charleston, III.
Nauvoo, 1 1
1
St. Ann. Ill
Springfield, 111..
Springfield, IllWarsaw. Ill

Disposition

Consolidated with National Trust Bk.
Liquidated.
Liquidated.
• To Ridgely-Farmers State Bank—
1 (Member).
Liquidated.
Cambridge City,Ind. Liquidated.
Flora, Ind.
Liquidated.
Shirley, Ind
Liquidated.
Consolidated with Citizens National.
South Bend, Ind
Richland, la
Liquidated.
Consolidated with First National Bank.
Burlington, la
Consolidated with First National
Appleton, Wis
Bank of Appleton.
Consolidated into First Wisconsin NaMilwaukee, Wi:
Wis..
tional Bank.
Oshkosh, Wis
Consolidated with Old National Bank

27

SCHEDULE 9.—State bank membership in Federal Reserve Bank of Chicago by
states and cities, with year of admission.

ILLINOIS
City
Auburn
Barrington
Bloomington
Chicago..—

Cicero
Des Plaines
Elizabeth
Elmhurst
Eureka
Evanston
FultonGeneva
Hinsdale
Joliet—
Kewanee
La Grange
Magnolia
MarshallMartinsville
Matteson
Mattoon
Moline
Mount Carroll
Oak Park
Oswego
Shannon
Springfield

|Bank
Auburn State Bank.
First State Bank of Barrington.
State Bank of Bloomington
Austin State Bank
Capital State Savings Bank
Central Trust Co. of Illinois
Chicago Savings Bank & Trust Co ._
z
Depositors State & Savings Bank—
2
First Trust & Savings Bank
Foreman Bros. Banking Co
Great Lakes Trust Co._
Harris Trust & Savings Bank
z
Home Bank & Trust Co..._
z
Hyde Park State Bank...
Illinois Trust & Savings Bank
Kaspar State Bank
Madison &l Kedzie State Bank..
Mechanics & Traders State Bank—_
Mercantile Trust 8z Savings Bank
Merchants Loan & Trust Co._
Noel State Bank.
Northern Trust Co
North Side State Savings Bank
North-Western Trust & Savings Bank
Security Bank of Chicago
Second Security Bank
Standard Trust 8z Savings Bank—
State Bank of Chicago
Union Trust Co
United State Bank of Chicago
Kirchman State Bank.
Des Plaines Bank
Elizabeth State Bank
Elmhurst State Bank...
Farmers State Bank of Eureka
Evanston Trust & Savings Bank
State Bank of Evanston
Whiteside County State Bank—
State Bank of Geneva
Hinsdale State Bank._
Commercial Trust & Savings Bank of Joliet
Joliet Trust 62 Savings Bank.
Union State Savings Bank 62 Trust Co
La Grange State Bank
First State Bank of Magnolia
Marshall State Bank—
Martinsville State Bank—
First State Bank of Matteson
Central 111. Trust & Savings Bank.
Moline Trust & Savings Bank
Peoples Savings Bank & Trust Co
State Savings Bank & Trust Co
Carroll County State Bank
Oak Park Trust & Savings Bank
Suburban Trust 82 Savings Bank
Oswego State Bank
State Bank of Shannon.
Ridgely-Farmers State Bank-




28

Admitted
1918
1918
1918
1917
1918
1914
1917
1918
1917
1917
1919
1917
1918
1917
1918
1917
.'....1918
.1918
1918
1917
1917
1918
1918
1918
1918
1919
1917
1917
1917
1917
1917
1918
1919
1915
1918
1918
1917
1919
1918
1918
1915
1917
1917
1918
1918
1918
*1917
1918
1918
1918
1918
1918
1918
1918
1917
1918
1918
1919

SCHEDULE 9.—State bank membership in Federal Reserve Bank of Chicago b
states and cities, with year of admission—Continued.
ILLINOIS—Continued
City
Bank
Admitted
St. Charles
Stewart State Bank..1918
SycamorePierce Trust & Savings Bank
z
1918
Wenona
First State Bank of Wenona
1918

Angola _
Bargersville
Colfax
Connersville._
Cromwell
Elkhart _
Hillsboro...._
Jamestown
Kentland
Lafontaine
Marion
North Liberty
Peru _.
Richmond
Rochester
South Bend
South Whitley._
Terre Haute.
Tipton
Winamac

Algona..
Alta Vista
Ames...
Avoca
Audubon
Barnes City
Battle Creek
Bellevue
Blairsburg
Brighton.Britt
Cedar Falls
Chariton
Charter Oak.
Cherokee
Clinton
Davenport
Decorah
Des Moines

Elberon
Eldora
Elkader._



INDIANA
Steuben County State Bank
Farmers State Bank....
Farmers State Bank
Farmers & Merchants Trust Co
Sparta State Bank....
St. Joseph Valley Bank..._
Hillsboro State Bank._
Citizens State Bank
Discount & Deposit State Bank
Kent State Bank
Farmers State Bank....
Grant Trust & Savings Co
North Liberty State Bank
Peru Trust Co
Dickinson Trust Co _
:
United States Bank & Trust Co
American Trust Co
St. Joseph Loan & Trust Co
Gandy State Bank.....
Terre Haute Trust Co
Farmers Loan & Trust Co
First Trust & Savings Bank
IOWA
County Savings Bank__
Alta Vista Savings Bank
Story County Trust & Savings Bank
Avoca State Bank
Iowa Savings Bank
Farmers Savings Bank
Battle Creek Savings Bank
Bellevue State Bank
State Bank of Blairsburg
Brighton State Bank.
Commercial State Bank
Iowa State Savings Bank.
Security Trust 8z Savings Bank.
State Savings Bank
Farmers State Bank
Cherokee State Bank
Peoples Trust & Savings Bank.
American Commercial Savings Bank.
Citizens Savings Bank
Winnesheik County State Bank
Bankers Trust Co
Central State Bank
First Trust & Savings Bank_.._
Iowa Loan & Trust Co
Farmers State Bank
Citizens Savings Bank
Elkader State Bank _
29

1918
1918
1919
1918
1918
1917
....1918
1918
....1917
1918
1919
1918
1918
1918
1918
....1919
1918
1918
...1918
1918
1918
1918

1918
1918
1918
1918
1918
1918
1918
1918
1918
1918
1918
1918
1917
1918
1918
1918
1917
1918
1918
1918
1918
1918
1919
1917
1918
1918
1918

S C H E D U L E 9.—State bank membership in Federal Reserve Bank of Chicago by
states and cities, with year of admission—Continued.

City
Ellsworth.
Fairbank
Fairfield
Fort Madison
Fostoria
Garwin
Germania
Gilbert
Gilman
Grant
Humboldt _
Jefferson
Knoxville
Leon
Lockridge
Logan
Lowden..—
Lytton
Malcom
Mapleton
Marshalltown...
Mason City
Mediapolis
Missouri Valley
Mondamin
Monticello
Moville
_
New Hampton
Newton.
Ogden
Osage
Ottumwa
Perry.
Remsen.
Riceville
Roland
Royal.
Sac City
Sibley....
Sioux City
Sioux Center
Sutherland
Terril
Thompson
Tipton
Ute
Vail
Wapello
Waterloo
Adrian

IOWA—Continued
Bank
Farmers State Bank of Ellsworth.State Bank of Ellsworth...
Fairbank State Bank _
Iowa State Savings Bank.
American State Bank
Citizens Savings Bank
Garwin State Bank
Farmers & Drovers State Bank
Gilbert Savings Bank
__
Citizens Savings Bank
Farmers Savings Bank
Peoples State Bank.
Jefferson Savings Bank
Guaranty State Bank
Farmers & Traders State Bank
Lockridge Savings Bank—
State Savings Bank—
Lowden Savings Bank..—
Farmers Savings Bank
Malcom Savings Bank...
Mapleton Trust & Savings Bank
Marshalltown State Bank..
Commercial Savings Bank
Commercial State Bank
State Savings Bank—
Mondamin Savings Bank—
Lovell State Bank.
Monticello State Bank
Moville State Bank
State Bank of New Hampton
Citizens State Bank—
Jasper County Savings Bank
City State Bank.
Home Trust & Savings Bank
Ottumwa Savings Bank
Peoples Trust & Savings Bank
Farmers Savings Bank
Riceville State Bank.
Farmers Savings Bank
Home State Bank
,
Farmers Savings Bank
Sac County State Bank
Sibley State Bank
Bankers Loan & Trust Co
Sioux Center State Bank
First Savings Bank
Terril Savings Bank
State Bank of Thompson
Farmers & Merchants Savings Bank
State Savings Bank.
Farmers State Bank....
Wapello State Savings Bank
Waterloo Bank & Trust Co
MICHIGAN
Adrian State Savings Bank
Commercial Savings Bank
Lenawee County Savings Bank.




30

Admitted
1918
1918
1918
1918
1919
1918
1918
1918
1918
1917
1919
1918
1918
1918
1918
1918
1918
1918
1919
1918
1918
1918
1917
1918
1918
1918
1918
1918
1919
..1918
1918
1918
1918
1918
1917
1918
1918
1918
1918
1918
1918
1918
1919
1916
1918
**1917
1918
1918
1918
1918
*1917
1918
1918
1918
1918
1918

SCHEDULE 9.—State bank membership in Federal Reserve Bank of Chicago by
states and cities, with year of admission—Continued.City
Albion._
Alpena
Ann Arbor
Armada
Bay City
Bellevue
Benton Harbor
Big Rapids
Birmingham.Caledonia
Caro.
Carson City
Carsonville
Cassopolis
Charlotte
Chelsea
Coloma._
Coopersville
Croswell
Davison
Dearborn
Detroit

Edmore
Elk Rapids.__
Evart
Farmington
Fenton
Flint

Flushing
Fountain...
Frankenmuth
Fremont
Grand Haven
Grand Rapids




MICHIGAN—Continued
Bank
Albion State Bank
Commercial & Savings Bank.
Alpena County Savings Bank
Farmers & Mechanics Bank.
State Savings Bank
Armada State Bank.
Farmers State Bank
Bay City Bank
Farmers State Savings Bank
Peoples Commercial & Savings Bank
Farmers State Bank
Benton Harbor State Bank
Big Rapids Savings Bank
Citizens State Bank
First State Savings Bank
State Bank of Caledonia
State Savings Bank
Farmers & Merchants State Bank
First State Bank
_
Cass County State Bank
Eaton County Savings Bank._
Farmers & Merchants Bank
z
Kempf Commercial Savings Bank
State Bank of Coloma
Peoples Savings Bank.
First State Bank...
Davison State Bank
Dearborn State Bank
American State Bank
Bank of Detroit......
Central Savings Bank
Detroit Savings Bank
Dime Savings Bank
First State Bank of Detroit
Peninsular State Bank
Peoples State Bank.
United Savings Bank of Detroit
Wayne County & Home Savings Bank
Edmore State Bank...
Elk Rapids State Bank
First State Savings Bank....
Farmington State Savings Bank
Commercial Savings Bank
Fenton State Savings Bank.
Citizens Commercial S Savings Bank
z
Genesee County Savings Bank
Industrial Savings Bank..._
Union Trust & Savings Bank
Peoples State Bank
Bank of Fountain
Frankenmuth State Bank
Fremont State Bank
Old State Bank
Grand Haven State Bank
Peoples Savings Bank _
City Trust & Savings Bank._
Commercial Savings Bank
Grand Rapids Savings Bank
Kent State Bank.
31

Admitted
1918
1915
1918
1918
1918
1919
1918
1918
1918
1918
1919
1918
1918
1918
1919
1919
1919
1918
1919
1918
1917
1918
1919
1918
1918
1919
1918
1918
*1917
1918
1917
1917
1917
1917
**1917
1917
1918
1917
1918
1918
1919
1918
1918
1918
1917
1918
1917
1917
1918
1919
1918
1918 •
*1917
1917
1918
1918
1918
1917
1917

SCHEDULE 9.—State bank membership in Federal Reserve Bank of Chicago by
states and cities, with year of admission—Continued.

MICHIGAN—Continued
Bank
Peoples Savings Bank__
Commercial State Savings Bank__
Oceana County Savings Bank
Highland Park State Bank...
Hillsdale Savings Bank..
First State Bank.
Holland City State Bank
- First State & Savings Bank
Hopkins State Savings Bank
First State & Savings Bank
Boies State Savings Bank
Thompson Savings Bank
Lapeer County Bank
Peoples State Bank of Imlay City
State Savings Bank.
Central State Bank
Jackson State Savings Bank
Grosvenor Savings Bank
Lake Odessa State Savings Bank
Commercial State Savings Bank
Farmers & Merchants State Bank
Lansing State Savings Bank
Lapeer Savings Bank
Macomb County Savings Bank
City State Bank
Ludington State Bank
Peoples Bank
Union Savings Bank
Manistee County Savings Bank
G. W. Jones Exchange Bank.Commercial Savings Bank.
Farmers Bank
First State & Savings Bank
Chemical State Savings Bank
Milan State Savings Bank.
First State Bank
B. Dansard & Sons State Bank of Monroe.Wakefield State Bank
Exchange Savings Bank
Isabella County State Bank
Ullrich Savings Bank.
Farmers & Merchants Bank
State Savings Bank...
Niles City Bank._
Lapham State Savings Bank
Onsted State Bank
Paw Paw Savings Bank...
H. C. McLachlin & Co. State Bank...First State Bank of Petoskey
American Savings Bank
First Commercial Bank
Pontiac Savings Bank
Federal CommercialfizSavings Bank
Redford State Savings Bank
Rochester Savings Bank.__
Presque Isle County Savings Bank
Romeo Savings Bank
First Commercial State Bank
Royal Oak Savings Bank.

City
Grand Rapids—Cont
Greenville
Hart
Highland Park.Hillsdale
Holland.
Holly
Hopkins
Howell
Hudson.Imlay City
Ionia
Jackson
Jonesville.
Lake Odessa
Lakeview.
Lansing.Lapeer
Lenox
Lowell._
Ludington.
Manchester
Manistee
Marcellus
Marshall
Mason.
Midland....
Milan
Milford
Monroe.Morenci
Mount Pleasant
Mount Clemens
Nashville
Niles
Northville
Onsted
Paw Paw
Petersburg.
Petoskey.Pontiac
Port Huron
Redford
Rochester
Rogers City
Romeo
Royal Oak

i




32

Admitted
1919
1918
*1917
1917
1918
1918
1918
1919
1919
1919
1917
1918
1918
1918
1918
1917
1918
1918
1919
1918
1918
*1917
1917
1919
1918
1918
1918
1918
1918
1918
1918
1919
1919
1919
1917
1918
1917
, 1918
1917
1918
1918
1918
1919
1917
1919
1918
1918
1917
1918
1918
1919
1918
1917
1918
* 1917
1918
1917
1918
1918

SCHEDULE 9.—State bank membership in Federal Reserve Bank of Chicago by
states and cities, with year of admission—Continued.

City
St. Charles
St. Clair
Saginaw
Saline
Saugatuck..
South Haven
Suttons Bay
Tecumseh
Traverse City
Vicksburg
Warren
Washington
Wayne
Williamston

Baraboo...Burlington
Clinton
Delavan
Green Lake
Kenosha
Kewaunee
Madison...
Milwaukee

Mineral Point
Mosinee
Oakfield
Platteville.
Plymouth
Sheboygan
Sturgeon Bay
Waupun....
Wausau
Winneconne

MICHIGAN—Continued
Bank
St. Charles State Bank
Commercial & Savings Bank.
American State Bank
Bank of Saginaw
„
Saline Savings' Bank
Fruit Growers State Bank
Citizens State Bank
Leelanau County Savings Bank
Lilley State Bank
Tecumseh State Savings Bank
Traverse City State Bank
Farmers State Bank
First State Bank
._ State Savings Bank of Warren
Washington Savings Bank
Wayne Savings Bank..
_
Crossman & Williams State Bank
Williamston State Bank

WISCONSIN
Bank of Baraboo
.'.
Bank of Burlington
...Citizens Bank
Citizens Bank of Delavan
Green Lake State Bank
Merchants & Savings Bank.....
State Bank of Kewaunee...
Bank of Wisconsin
American Exchange Bank
Badger State Bank
Marshall & Ilsley Bank
Second Ward Savings Bank
Iowa County Bank
.*.
State Bank of Mosinee..
Bank of Oakfield
._*.
State Bank of Platteville..
Plymouth Exchange Bank..
State Bank of Plymouth
Bank of Sheboygan.
Citizens State Bank
Bank of Sturgeon Bay
— State Bank of Waupun._
Marathon County Bank...
Union Bank of Winneconne

*Capital and reserve paid in following year
**Reserve paid in following year.
^Nationalized in February, 1919.




33

Admitted
_.:.1919
_
*1917
1917
1918
1918
1915
...1918
...1918
1918
1918
....1918
1919
1919
1918
1918
1919
1919
1918

:

1918
..1918
1917
1919
1918
..1918
....1919
1914
*1917
1915
1917
..1918
1918
1918
1918
1918
1918
1918
1918
...1918
1918
1918
1918
1918

SCHEDULE 10.—Retiring state bank members and disposition

Charleston

ILLINOIS
Charleston Trust & Savings Bank (to National Ban

College Springs
Kellerton
Mt. Ayr

IOWA
Farquhar Savings Bank (to National Bank)
Kellerton State Bank (withdrew)
Mt. Ayr State Bank (withdrew)

Jackson...
Otsego._

MICHIGAN
Union Bank (to National Bank)
Citizens State Bank (withdrew)

SCHEDULE 11.—Member banks authorized and approved in 1919 to exercise
fiduciary powers.
IOWA

ILLINOIS
Aurora.
Canton
Charleston
Charleston
Chicago
Chicago
Danville
Decatur
El Paso
Freeport
Galesburg
Joliet
Mattoon
Rockford
Rockford

Old Second National Bank
Burlington
Merchants National Bank
Canton National Bank
Cedar Rapids.... Cedar Rapids National Bank
National Trust Bank
Charter Oak..
First National Bank
Second National Bank
Clinton...
Merchants National Bank
Corn Exchange National Bank Council Bluffs... •First Nat
Bank
*The National City Bank
Elkader
First Nat
Bank
First National Bank
iFairfield
First Nat
Bank
Citizens National Bank
Greenfield
First Nat
Bank
Woodford County Nat'l Bank Hawarden
First Nat
Bank
First National Bank
|Linn Grove.
First Nat
Bank
First National Bank
Milford
First Nat
Bank
Joliet National Bank
jMuscatine
First Nat
Bank
State National Bank
New Sharon
First Nat onal Bank
Manufacturer's National Bank Rippey.. _
First Nat onal Bank
*The Third National Bank
I Webster City.... First Nat onal Bank

INDIANA
Brazil
Crawfordsville
Elkhart
Fort Wayne
Goshen
HammondIndianapolis
KokomO-_
Logansport
Marion.
Michigan City.
Muncie
New Castle
Richmond
Winamac._

MICHIGAN
Citizens National Bank
The Elston National Bank
'Battle Creek
First National Bank
iBenton Harbor
The Old National Bank
I DetroitCity National Bank
Jackson
First National Bank
Fletcher American Nat'l Bank
*Howard National Bank
WISCONSIN
The City National Bank
Marion National Bank
Antigo
•Merchants National Bank
Delaware County Nat'l Bank Hartford
Fond du Lac.
First National Bank
Marinette
•First National Bank
Oshkosh
•First National Bank

•Additional Powers Granted




34

•Old National Bank
•Farmers & Merchants Nat'l Bk.
National Bank of Commerce
National Union Bank

Langlade National Bank
First National Bank
•Commercial National Bank
First National Bank
Commercial National Bank

SCHEDULE 12.— U. S. Treasury Certificates of

Indebtedness

anticipating

Victory Liberty Loan.

Jan.
Jan.
Jan.
Feb.
Feb.
Mar.
Apr.
May

2,
16,
30,
13,
27,
13,
10,
1,

Rate of
Alloted to
Chicago district interest

Total issue

Date of issue

_.... $751,684,500
600,101,500
687,381,500
620,578,500
532,381,500
542,197,000
646,025,000
591,308.000

$108,647,000
97,774,500
103,048,500
91,677,500
82,044.000
82,656,500
99,886,000
107,256,500

$4,971,657,500

1919
1919
1919
1919
1919
1919
1919
1919

Subscribers

Date of
maturity

$772,990,500

Total

4y27c
4lA7o
4V2%
4X%

*>Vi%

4^%
4>^%
4,4%

June
June
July
July
July
Aug.
Sept.
Oct.

3,
17,
1,
15,
29,
12,
9.
7,

1919
1919
1919
1919
1919
1919
1919
1919

3,542
3,772
3,595
3,183
2,732
2,544
2,926
2,474

June
June
Sept.
Dec.
Sept.
Dec.
Mar.
Mar.
Sept.
Mar.
June

17. 1919
16, 1919
15, 1919
15. 1919
15. 1919
15, 1919
15, 1920
15, 1920
15, 1920
15, 1920
15, 1920

355
329
420
332
591
665
524
550
512
505
819

Anticipating Taxes, 1919—1920
Jan. 16, 1919
Mar. 15, 1919
June 3, 1919
June 3, 1919
July
1, 1919.._
July
1, 1919
July 15, 1919
Sept. 15, 1919.._
Sept. 15, 1919
Dec. 1, 1919
Dec. 15, 1919
Total

$392,381,000
407,918,500
526,139,500
238,711,500
326,468.000
511,444,000
323,074,500
101,131,500
657,469,000
260,322,000
728,130,000
$4,473,189,500

$ 42,045,000
48.301,500
79,163,000
63,326,500
46,516,000
58.624,000
65.290,500
24,097,500
35,172,000
42,493,500
100,789,000
$605,818,500

4y2%

4J^%
44%
44%

44%
44%
4J^9'
44*7

4M%
4J^%

SERIES OF 1920
Aug. 1, 1919
Aug. 15, 1919
Sept. 2, 1919
Dec. 1, 1919

$533,801,500
532,152.000
573,841,500
162,178,500

$1,801,973,500

Total

$ 79,723,000
70,582,000
63,193,500
15,238,000

$228,736,500

SCHEDULE 13.—Depository banks division

2,
15.
Feb. 2,
Feb. 16,

1920
1920
1920
1920

2,148
2,095
1,623
585

statistics.

(Depository Division Figures Include Payments of Accrued Interest)
FOURTH LIBERTY LOAN PAYMENTS
January 30, 1919
January 16, 1919
Total

$21,819,079
36.747,728
$58,566,807

CERTIFICATES OF INDEBTEDNESS
[Issued in anticipation of Victory Loan]
Dated
Jan
2, 1919
Jan. 16, 1919
Ian. 30, 1919.__
Feb. 13, 1919__
Feb. 27, 1Q19._
Mar. 13, 1919_
Apr. 10, 1919.__
May 1. 1919

$78,653,058
60,583,338
69,525.300
63.752.570
58,965,430
52,039,695
66,351.081
78,660,249

.'

Total




$528,530,730

35

S C H E D U L E 13.—Depository banks division statistics—Continued.
Depository Division figures include payments of accrued interest.
CERTIFICATES OF INDEBTEDNESS
[Issued in anticipation of taxes.]
Due
e 17, 1919 _
e 16, 1919 „

T-2._
T-3._

t.
;
.
t.
:
.
r.
r.
t.
r.
e

T-4
T-5._
T-6._
T-7_
T-8._
T-9._
T-10
T.N-3
T.J-1920

15, 1919
15, 1919
15, 1919 __
15, 1919 _
15, 1920
15, 1920
15, 1920
15, 1920
15, 1920

$ 29,837,467
9,072,477

46,241,995
32,591,336
29,439,562
40,854,516
38,426,926
18,735,103
25,762,531
32,486,025
48,447,610

Total*.

$351,895 548

U. S. CERTIFICATES OF INDEBTEDNESS
Dated
Aug.
1, 1919
Aug. 15, 1919
Sept. 2, 1919
Dec.
1, 1919

$ 48,019,002
45,245,522
40,182,680
9,615,500

Total

$143,062,704

VICTORY LIBERTY LOAN PAYMENTS
Dated
May 20, 1919
June
2, 1919....
July 15, 1919
Aug. 12, 1919
Sept. 9, 1919
Oct.
7, 1919
Nov. 11. 1919

$101,438,712
41,810,527
41,913,473
20,922,940
15,975,297
13,359,075
6,635,187

Total...

$242,055,211

COLLATERAL HELD BY CUSTODIANS
1st

Quarter Jan. 7
Mar 29

$159,452,204.68 Minimum
196,624,560.29 Maximum

2nd Quarter Apr 28
June 11

180,744,270.28 Minimum
231,061,870.04 Maximum

3rd

Quarter July 9
Aug. 15

180,843,539.89 Maximum
135,389,202.40 Minimum

4th

Quarter Dec! 1
Dec. 23

70,399,395.16 Minimum
127,626,323.91 Maximum

Total number designated depositories, 1 177




36

SCHEDULE 14.—Final figures for Victory Liberty Loan—Seventh Federal Reserve
District.
(By Geographical Divisions)

Subscriptions

$189,225,000
84,825,000
81,562,500
110,925,000
110,925,000
75,037,500

126.33
109.92
104.58
100.07
134.72
124.18

$772,046,550

Total

Per Cent
Quota
Subscribed

$239,080,550
93,242,650
85,307,450
111,787,450
149,444,500
93,183,950

Illinois (Outside Cook County)

Quota

$652,500,000

118 32

SCHEDULE 15.—Classification of Subscriptions to Victory Loan by Denominations—Seventh Federal Reserve District.
Group

Subscriptions Ranging from

Number of
Subscribers

Amount

$76°,405,050
2,641,500

Grand Total

640
90
4.7
2.7
196

$493,061,200
68,531,700
36,525,900
20,823,500
150,462,750

2,267,411

A
B
C
D
E

2,264,137
2,554
431
132
157

Allocated subscriptions—net,

Class
Class
Class
Class
Class

Percentage

$772,046,550

$50 to $10,000.__
$10,050 to 50,000
$50,050 to 100,000
$100,050 to $200,000
$200,050 and over...

SCHEDULE 16.—Coupon notes delivered.
VICTORY LOAN
Number
Subscriptions
Victory
Victory
Victory
Victory
Victory
Victory

4%
4%
4%
4%
4%
4%

1,543,519
1,162,893
143,852
165,600
8,796
4,987

Coupon..
Coupon..
Coupon..
Coupon..
Coupon..
Coupon-

Denomination
\

50
100
500
1,000
5,000
10,000

3,029,647

$524,841,250

Total amount.
Victory
Victory
Victory
Victory
Victory
Victory

$524,841,250
4,303
4,640
2,017
26,464
1,906
2,977

~i% Coupon~i% Coupon~i% Coupon3% Coupon3% Coupon"i% Coupon..

42,307
Total amount..




$ 77,175,950
116,289,300
71,«26,000
165,600,000
43,980,000
49,870,000

5

50
100
500
1,000
5,000
10,000

S

215,150
464,000
1,008,500
26,464,000
9,530,000
29.770.000

$67,451,650
$67,451,650

37

SCHEDULE 17.—Subscriptions for the Victory Liberty Loan by cities. A statement of results of subscription campaign in communities having a population in
excess of 25,000.
ILLINOIS
Population

Number of
subscriptions

Amount of
subscriptions

34,204
27,258
2,552,967
32,261
39,631
28,203
38,010
27,451
71,458
55,185
28,926
61,120

6,178
3,213
800,000
2,718
3,638
4,120
13,000
10,038
20,000
7,900
8,169
2,800

$ 1,558,450
1,429,900
235,000,000
1,311,000
2,041,400
1,376,150
3,000,000
22,281,350
3,909,550
3,393,000
1,474,250
3,362,350

28,743
76,183
65,000
26,171
271,708
35,085
68,946
66,083

6,385
14,340
17 667
7,683
68,000
3,784
6,729
3,405

S 931,950
5,750,000
1,887,000
1,134,900
17,961,350
1,703.200
3,267,950
3,044.850

25,030
37.308
27,386
31,484
48,811
101,598
39,873
57,078
35.559

City

1,641
9.506
2.340
3,133
12,700
10,313
3,500
8,419
5.571

$1,301,000
2,323,750
1,253,500
1,154,150
3,510,000
6,225,250
1,622,900
2,913.750
1,237,700

7,500
5 000
131,000
20.217
22,359
1,965
8,839
6.363
8.981
8,160
8,949

$ 2,200,000
4,000,000
86,236,000
3,503.650
7,467,550
150,200
3,856.050
1,651,550
1,829,350
1,588,000
1,325,400
3,313,300

5,320
9,180
6,631
57,410
3,836
15,572
2,790

$ 1,161,900
3,202,450
2,191,350
35,847,000
1,454,800
2,278,150
1,529,050

Chicago and Cook County
Danville
Decatur
Joliet
Moline
Peoria
Rock ford
Rock Island
Springfield

INDIANA
East Chicago
Fort WayneGary
Hammond
Indianapolis..
Muncie
South Bend._.
Terre Haute..

IOWA
Burlington
Cedar Rapids...
Clinton
Council Bluffs..
Davenport
Des Moines
Dubuque.
Sioux City.
Waterloo

MICHIGAN
Battle Creek
Bay City
Detroit.FHnt_
Grand Rapids._
Hamtramck
Highland Park.
Jackson
Kalamazoo _
Lansing
Muskegon

29,480
47,942
571,784
80,000
128,291
25,000
25,000
35,363
48,886
40 498
26,100
55,642

Saginaw._

475

WISCONSIN
Green Bay
Kenosha
Vtadison
Milwaukee..
Oshkosh.

29,353
31,576
30,699
436,535
36,065
46,486
28,559

„




38

SCHEDULE 18.—Total sales of War Savings and Thrift Stamps through Post
Offices and Federal Reserve banks from January 1st to December 31st, inc., 1919.
Illinois

Indiana

Iowa

Michigan

Wisconsin

Total

$3,058,287
804,104
742,842
637,504
440,269
432,428
382,577
349,574
426,592
559,260
600,787
538,958

$1,790,170
676,074
585,393
211,801
180,006
157,389
255,180
240,033
199,190
290,804
332,877
307,091

$1,465,675
169,676
99,715
59,978
79,684
53,524
52,818
46,257
36,672
161,738
146,112
174,179

$1,097,063
289,636
277,732
238,983
161,325
122,637
143,617
128,761
99,179
299,356
324,329
175,429

$1,275,943
215,800
161,819
116,411
108,440
100,645
82,309
83,121
79,713
198,926
141,496
149,478

$8,687,139
2,155,289
1,867,500
1,264,678
969,724
866,623
916,502
847,746
841,347
1.510,084
1,545,601
1,345,135

$8,973,182

$5,226,008

$2,546,028

$3,358,047

$2,714,101 $22,817,368

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

This statement is drawn up from reports issued by the Treasury Department.

SCHEDULE 19.—Federal Reserve notes of the Federal Reserve Bank of Chicago
received from other Federal Reserve Banks for redemption or credit, and notes of
other Federal Reserve Banks returned by the Federal Reserve Bank of Chicago for
redemption or credit.
RECEIVED.

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

1917

1916

1914-15

1918

1919

$

22,925
77,955
11,995
2,000
265
1,870
41,040
5,970
950
1,065
8,900

$

24,000
140,410
16,970
17,190
2,600
8,795
49,950
53,380
2,895
4,795
9,380

$

347,800
1,760,420
406,000
420,040
128,610
224,550
1,050,350
219,500
142,150
128,835
301,010

$ 2,247,800
14,071,550
3,237,500
3,294,050
2,765,850
2,493,075
12.486.965
4,261,800
1,285.100
1,722.150
1.842.315

$ 6,311,850
40,400.150
6,951,510
19,259,550
8.873,310
6,792,795
25,007,785
15,834,500
10,335,250
2.310,850
7.900,180

$

174,935

$

330,365

$ 5.129,265

$49,708,155

$149,977,730

1918

1919

RETURNED.
1914-15
Boston.
New York
Philadelphia
Cleveland
Richmond
Atlanta
St. Louis
Minneapolis.
Kansas City
Dallas
San Francisco.Total




$

7,400
212,200
11,540
51,280
54,735
66,925
38,155
252,795
192,770
148,680
40,895

$ 1.077,375

1916
$

1917

96.500
1,615,500
124,000
572,000
328,000
603,000
545,500
2.286,500
1,496,500
930,500
391,500

$ 8,989,500

39

$

218,500
3,425,000
357,500
939,500
332,000
747,500
1,205,000
3,418,000
2,776,500
974,000
875,000

$ 1,209,500
10,923,000
1,931,500
6,654,000
1,553,000
2,013,000
5,146,000
7,347,000
8,578,500
1,816,000
4,285,100

$

$15,268,500

$51,456,600

$129,540,700

3,908,200
28,910,000
6,150,000
19,051,000
5,490,500
6,330,000
13,122,000
18,418,000
14,621,500
3,270,000
10,269.500

SCHEDULE 20.—Federal Reserve notes.
Notes
Outstanding

Denominations

Dec. 31, 1918

Fives
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands
F've Thousands

•

$ 69,450,760
140,688,250
191,545,500
28,437,400
20,816,100

$450,938,010

Total

S C H E D U L E 21.—Federal Reserve Bank

Notes issued
During 1919
$ 67,640,000
110,920,000
112,400,000
19,800,000
3,200,000
2,200,000
6,000,000
2,000,000
$324,160,000

Notes, Dec. 31,

Notes
Redeemed
During 1919

Notes
Outstanding
Dec. 31, 1919

$ 56,046,620
86,993,270
83,305,940
10,351,150
2,888,300
16,500
37,000

$ 81,044,140
164,614,980
220,639,560
37,886,250
21,127,800
2,183,500
5,963,000
2,000,000

$239,638,780

$535,459,230

1919.

Ones

Twos

Fives

Tens

Twenties

Total

Total notes received during 1919 from Comptroller of the Currency
Total notes returned during 1919 to Comptroller of the Currency for destruction

$24,340,000

$5,9o8,000

$2,520,000

$ 128,240

$ 734,400

$33,690,640

4,834.840

927,810

3,703,390

1,257.220

203,380

10,926,640

Addition to outstanding notes during 1919.. . .
Total notes outstanding December 31, 1918...

$19,505,160
7.826,550

$5,040,190
2,088.200

*$ 1,183,390
5,175,350

*$ 1.128.980
2.570.200

$ 531,020
859,500

Outstanding December 31, 1919

$27,331,7.10

$7,128,390

$3,991.9.30

$1,447,220

$1,390,520

$22 764,000
18,525,800
$41,289,800

•Reduction.




SCHEDULE 22 —Total transfers bought and sold by months for 1919.
IN THOUSANDS OF DOLLARS
Amount Bought
Month

By Draft

By Telegraph

Amount Sold
By Draft

By Telegraph

44,195
32,950
30,782
42,667
52,818
40,398
27,946
41,312
49,286
64,606
58,681
81,603

287.669
246,683
266,504
258.414
253,061
283,478
348,408
369,054
342,713
332,594
290,351
359,074

13.380
12,240
11,410
7,610
10.493
21,670
20,678
26,630
24,157
21,267
22,215
14,825

$ 52,181
25,075
32,140
29,792
45,953
44.384
86,600
61.315
109,021
121,257
146.036
154,681

$ 567,244

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

$3,638,003

$206,575

$908,435

SCHEDULE 23.—Exchange bought and sold January 1, 1919, to December 31,
1919, inclusive.
IN THOUSANDS OF DOLLARS
Amount Sold

Amount Bought
Name
By Draft
$

New York.
Philadelphia
San Francisco
Dallas
El Paso
Portland
Salt Lake City
Seattle

665
150

Little Rock
Detroit
Buffalo

4,725
24,688
1,830
1,318
4,974
399,057
53,126
3,586
67.818
1,225
39
962
1,680
58

.

Birmingham
Total




275
405

663

$ 567,244

41

By Telegraph
$

31,966
168,551
105,350
116,686
112,482
2,294,759
149,425
31,954
285,056
70,748
37,101
42,343
67,534
17,319
3,275
7,924
12,165
17,609
7,823
21,151
2.955
7 193

By Draft

$

1223
300
1,308
203,332
282
75
55

$

1.850
51.285
26,020
13,525
93.429
622,226
8,585
600
12,555
31,600
15,640
700
12,924
1,000
250
1.971
200
3,625
1.550
3.700
2 200

4,224
1 040
2,797
5 032
13,321
220
$3,638,003

By Telegraph

1.000
150
1.850
$206,575

$908,435

S C H E D U L E 24.—Operation of the Federal Reserve Clearing System; Daily Average Number of Checks Handled Monthly and During the
Calendar Year, 1919.
IN THOUSANDS OF DOLLARS

Items drawn on
Banks in Federal
Reserve City

Months

April
July
August
October. .
[ December

Total..

*

Items drawn on
Banks in other
districts

No. Items

Amount

1,306,286
1.196,402
1.707,015
1,620.951

$203,881
180.071
270.198
223.882
247.773
275,520
277.1H2
291,579
356.047
365.173
330.434
413,099

142,312
133,259
182 246
157,541
146,347
152,843
164.219
107.03?
182,599
192,747
187,019
225.010

6,499,319 $8,207,773 23,326,664 $3,441,419

2,033,775

$ 11,309
2,225.581
987,821
616,111

6.730
1.073.410
511,438
778,959

No. Items
January
Kebruary

Items drawn on
Banks in Seventh
district outside Federal
Reserve City

Amount

371,819 $ 679,362
520.858
343.391
683 403
631 287
595.407
423,840
(,95,494
449 685
703 970
4lH 9%
033.045
494,696
646,749
540,588
79b,204
640 282
753,320
693 71 1
002 651
650 009
837,310
766,015

21.467
)aily average, 1919
3,047,109
Total. 1918
1,807.728
Total, 1917
950.596
Total. 1916




1704.624

1,844,221
2.005.865
2.O32.QO5
2,191,229
2.463,403
2.315,521
2.938.242

80.396
$ 27.137
(-.748.151 10.289,902
3,985,878 4.362,436
1.549.148 2,722,827

No. Items

Amount
$33,509
26.346
40 024
25,013
20,970
39,037
58,632
54.565
50.682
37.201
35.269
53,257

Total exc usive of
items dr awn on
Treasun ;r U. S.

No. Items

Amount

1,820,417
1,673.052
2 520 548
2,202,332
2,300.650
2,491,000
2,004.780
2,741,120
3,014.110
3.349,861
3.152.549
3.929,267

$ 916,752
727,275
999.625
844,902
970.243
1,018.527
968.839
992,893
1,203,533
1,155,694
1.028.354
1,303.666

Items drawn on
Treasurer
United States

No. Items
386,949
277.982
416.831
639,675
393,991
274,010
237,824
105,698
251,305
425,803
236.955
187,762

$481,111 31.859,758 $12,130,303 3,895,385
$

1.589
105.261
292,992 14,410,421
187.450 6,681,602
873,758 4.452.382

$ 40.096
9,266,724
5,161.149
3,039.017

12,890
2,801.637
850,764
713,003

Total including
items drawn on
Treasurer U. S.

Amount

No. Items

Amount

$108,520
92,224
87.221
70.114
52.924
49.033
59,178
34,127
45,043
30,487
23.524
46,066

2,207,366
1.951,034
2,937,379
2,842,007
2,694,647
2,765,670
2,902,604
2.906,824
3,265.415
3,775,664
3.389,504
4,117.029

$1,025,272
819,499
086 846
915.016
,023,167
,067,560
,028,017
,027,020
.248.576
,186,181
.051,878
,349,732

$698,461 35,755,143 $12,828,764
118,148 $ 79,922
$ 2.347
1,128,269 17,212,058 10,394.993
202.461 7.532.366 5.363,610
74,740 5.165,385 3,113,757

SCHEDULE 25.—Cold Settlement Fund Operations January 1, 1919 to December 31, 1919, incl.

Federal Reserve Bank of Chicago.

IN THOUSANDS OF DOLLARS

Federal Reserve Banks and Branches

Amount received
in settlement of
accounts due from
other Federal
Reserve Banks

Amount paid
in settlement of
accounts due to
other Federal
Reserve Banks

$ 417,528
3.500.736
582,056
914,385
86,441
58,245
197.881

$ 385.393
2,278,223
435,312
1.284,737
85.900
38,414

Boston
New York
Philadelphia . . .
Cleveland
Richmond
Baltimore
Atlanta
New Orleans. . .
St. Louis
Little Rock. . . .
Louisville
Memphis
Minneapolis . . .
Kansas City . ..
Denver
Omaha
Dallas
El Paso
Houston
San Francisco. .
Seattle
Spokane
Portland
Salt Lake City.
Total
Excess....

39,674

1,012.309
16,647
91,221
36.829
490.957
576.422
35.352
125,264
305.607
9,952
11.199
150.501
58,813
15.014
45,394
43,460

$8,821,887
988.837
Gain through settlements
Loss through transfers
Net loss through transfers and settleme
Gold Settlement Fund Balance. December 31, 1918
Net Gain Settlements
Net Gain Direct Transactions


Net Los.s Transfers
Gold Settlement
http://fraser.stlouisfed.org/ Fund Balance. December 31, 1919
Federal Reserve Bank of St. Louis

TRANSFERS

Gain through
settlements
5 32,135
1,222,513
541
19,831
88.654

58.507
734,579
9.640
108.560
34.714
835,004
776,651
31.475

277,730
7.007

2,115
3.877
175,046
3,817
1.411

130.561
6.135

9,788

26.726
33.448

370,352

390.845
5,000
300,527
2,300

18.833

'5.666'

Amount paid
$

42.563
676.688
602,547

305.000

"7'2.i96"
1,666'

17,339

148.876

$7,833,050

Amount received
29,000
44.779

146.744

109.227

200,081
58.702
12,397

Loss through
settlements

111
2,617
18,668
10.012
$2,012,829
988.837
$ 988.837

2.000
14.000

5,000

247.643

344,047
200.229

382,875

23.612

49,580

$1,023,992

8,666'

$1,049,094

"lb',666'

$2,097,863
1,048,769

1.048.769

59,932
$ 106,772
988,837
29,638
$1,125,247
1.048,769
$ 76.478

DIRECT TRANSACTIONS GOLD SETTLEMENT FUND

Debits
$476.931
Net G a i n . . . . $29,638

Credits
$447.293

DETROIT BRANCH
SCHEDULE 26.—Balance sheet of the Detroit Branch of the Federal Reserve Bank
of Chicago as at the close of business December 31, 1919.
December 31,
1919

$14,297,915

3,045,020
15,175,647
80,000
562,500

Total earning assets

$13,112,872
1,185,043

$33,767,800

Bills discounted for membersBills discounted, bought

December 31,
1918

$33,767,800

Assets

72,312
10,289,790
260,000
595,004

Transit and exchange for clearing house...
Federal Reserve and national bank notes..
Cold coin and gold certificates
Other lawful money.
Total cash reserves..

$

Total assets

$52,630,967

$25,515,021

$

I

642,500

$

855,004

Liabilities
Unearned discount
Received for sundry expense..
Difference account
Uncollected funds
Due to head office

54,255
258
1,332,639
51,243,815

$52,630,967

Total liabilities..

16,374
27
101
645
25,497,874

$25,515,021

SCHEDULE 27.—Profit and loss statement of the Detroit Branch.
January 1, to
December 31,
1919

Earnings

March 18, to
December 31,
1918

$1,037,030
4,734
160
2,242

$ 417,308
24,305
10,410
2,319

$1,044,166

$ 454.342

Expenses
Differences charged off

$ 194 081

$

174

156

Expenses Total

$ 194,255

$ 100.105

Net earnings _

$ 849,911

$ 354.237

Discount on acceptancesTransfers bought and sold
Sundry
Total earnings
Expenses




44

99 949

SCHEDULE

28.—Total loans (for monthly period ending the
Branch, Federal Reserve Bank of Chicago.

\7th).

Detroit

1918

1919

$ 26.407,000
13,105,000
6.131,000

$ 38,998,000
39,112,000
38,185,000
41,456,000
47,208,000
64,078,000

$ 45,643,000

$269,037,000

$ 30,421,000
29,236,000
50,339,000
62,790,000
48,626,000
41,029,000

$ 81,399,000
101.632,000
110,502,000
68,481.000
80,496.000
74,420,000

Six months..

$262,441,000

$516,930,000

Year._

$308,084,000

$785,967,000

Six months..
July
August
September
October
November
December

S C H E D U L E 29.—DetroitBranch Federal Reserve Bank of Chicago clearing house
balances (for monthly period ending the \7th) settled through reserve accounts.
1918

$390,743,000

$ 74,479,000
55,739.000
61,586,000
49,211.000
48,858.000
54.254,000

July
August
September.
October
November
December

$ 66.510,000
55,463,000
56,982,000
70,754,000
65,764,000
75.270,000

$145,833,000

Six months..

1919

$ 46,867.000
47,091,000
51,875,000

January....
FebruaryMarch
April
May
June

$ 82.307.000
89,807,000
114,715.000
108,562,000
116,608,000
140,688,000

Six months-

$344,127,000

$652,687,000

Year

$489,960,000

$1,043,430,000

S C H E D U L E 30.—Detroit Branch, incoming cash letters.
(For monthly period ending the \7th.)
1919

1918
Amount

Items

Amount

$ 12,080,000
36,370,000
45.624,000

June.
Six months




24,700
26.975
36,477

$ 59,728.000
54.610,000
48,976,000
57,850.000
61,966.000
62.773,000

$ 94.074,000

88,152

$345,903,000

45

Items
84,847
79,574
78,215
97,997
106.193
107.066
553.892

S C H E D U L E 30.—Detroit Branch, incoming cash letters.—Continued
(For monthly period ending the 17th.)
1919

1918

Items

Amount

Items

Amount

Six months

$292,303,000

370,838

$533,577,000

125,831
118,319
124,362
140,304
144,950
148,869
802,635

Year...

$386,377,000

458,990

$879,480,000

1,356,527

July
August

$ 62,905,000
42,115,000
34,070,000
48,255,000
49,264,000
55,694.000

November
December

47,818
47,176
52,488
63,230
83,430
76,696

$ 65,112,000
73,792,000
86,379,000
97,306,000
103 025,000
107,963,000

S C H E D U L E 31.—Detroit Branch Federal Reserve Bank of Chicago, collection
items received (for monthly period ending the \7th.)
1918
Amount
January
February
March
April
May
June
Six months

1919
Items

Amount
$

Items
181
223

321,000
134,000
20,000

48
46
11

358,000
769,000
352,000
455,000
1,070,000
483,000

475,000

105

3,487,000

1,179

705,000
246,000
274,000
577,000
1,197,000
404,000

63
57
95
175
137
125

$ 1,700,000
1,273,000
2,155.000
2,122,000
1,881,000
2,293,000

387
354
452
526
526
604

Six months

$ 3.403,000

652

$11,424,000

2,849

Year._.

$ 3,878,000

757

$14,911,000

4,028

$

July
August.
September.October
November.December

$

112
158
245
260

S C H E D U L E 32.—Wire transfers bought and sold, for monthly period ending the
\7th, Detroit Branch Federal Reserve Bank of Chicago.
1919

1918
Bought

Sold

Bought

Sold

$ 9,980,000
7,034,000
12,656,000

$ 2,075,000

$ 26,985,000
23,990,000
17,715.000
32,730,000
26,245,000
56,007,000

$ 40,814,000
29.128,000
35,945,000
29,053,000
40,356,000
18,085,000

$ 29,670,000

$ 2,075,000

$183,672,000

$193,381,000

$ 11,164,000
14,620,000
11,867,000
21.364,000
18,860,000
22,873,000

$ 7,850,000
19,95,5,000
12,964,000
14,222,000
12,637,000
21,603,000

$129,529,000
54,839,000
70,110,000
71.568.000
73,423,000
82,827.000

$ 82,631,000
93,748,000
104,631,000
87,203,000
84,344,000
86,501,000

Six months

$100,748,000

$ 89,231,000

$482,296,000

$539,058,000

Year...

$130,418,000

$ 91,306,000

$665,968,000

$732,439,000

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




46

SCHEDULE 33.—Detroit Branch, Fiscal Agency Operations.
1918
No. Items

January
rebruary
March
April
May

June

Six Months

July

August
September
October
November
December
Six Months
Year

$23,295,666
26,707,000
37,271,000
$87,273,000
$ 87.273.000

23,561
24,404
30,371
78,336
78,336

CERTIFICATES OF
INDEBTKRNF.SS KBBDEMED

COUPONS PAID

GOVERNMENT CHECKS PAID

Amount

Federal Reserve Bank of Chicago.

1919
No. Items
Amount
35,221
$ 39,5 57,000
33,502
29,182.000
31,994
22.572,000
42,736
22,204,000
43.241
28.815,000
32.894
14.244,000
219.588
$156,574,000
9,277,000
23.886
25.676
11.479,000
30.856
8,691.000
30,239
16.701,000
32,277
8,730,000
33,490
8,416,000
$63,294,000
176.924
$219,868,000
396.512

Amount

$ 389.000
$ 389.000
189,000
65.000
127.000
285,000
189.000
430,000
$1,285,000
$1,674,000

1918
No. Items

77,840
77.840
53.547
34,326
38.225
86,695
64,737
117.511
395.041
472.881

Amount
$ 360.000
72.000
391,000
711,000
830,000
435.000
$2,799,000
462,000
162.000
452,000
654.000
658,000
2.227,000
$4,615,000
$7,414,000

1919
No Items
102,958
37,252
50,519
146.619
245,145
144,1 18
726,611
121.440
116.775
81,707
160,891
209,900
207,362
898.075
1.624,686

1918

1919

$9,487,666
$9,487,000
$9,487,000

$ 11.641.000
6.255,000
12.516,000
1,394,000
7,176,000
36,259,000
$ 75,241,000
22.963.000
6.243,000
43,076.000
1,082.000
4.800.000
18.279.000
$ 96.443.000
$171,684,000

SCHEDULE 34.—Detroit Branch, Federal Rese rve Bank of Chicago, Currency Operations.
PAYMFNTS

DEPOSITS

1918
February
April

June
Six Months
July
October
December
Six Months
Year




$ 9.280.000
7,554,000
6,452.000
$23,286,000
$ 8,913.000
8.357,000
6.820,000
8.392.000
8.425.000
10.089.000
$50,996,000
$74,282,000

1919
$14 487 000
8,363.000
7 732 000
9,614,000
11,206,000
11,635,000
$63,037,000
$13,274,000
13,212,000
12,051.000
16.161.000
17,458,000
17.931.000
$90,087,000
$153,124,000

1918

$ 9.780.000
9.248,000
10.316,000
$29,344,000
$13,008,000
11.601,000
14.016,000
14,224.000
14.196.000
13.456 000
S8O.5O1.O0O
$109,845,000

1919
$ 9.138,000
11.316.000
11.406,000
14,239,000
13,044,000
12,696.000
$71,839,000
$15,398,000
15.007.000
18,316,000
21,361,000
21.157.000
22.274.000
$1 13,513.000
S185.352.OOO

SHIPMENTS

1918

$ 2,608.000
3,277,000
2,672,000
$ 8,557.000
$ 2.022.000
3.226.000
3,666.000
2.295.000
1.541,000
2,672,000
$15,422,000
$23,979,000

1919
$ 3.360.000
4,268.000
1.625.000
1,378,000
1,270,000
6.360,000
$18,261,000
$ 4,519.000
5,685,000
4.131,000
6,588.000
6.644,000
4.948.000
$32,515,000
$50,776,000

INDEX
Acceptances—
Bankers'
Development of open market
Permission to accept up to 100 per cent
Purchase of
Trade
Assets and liabilities
Banking conditions
Banking quarters
Branch bank, Detroit
Business conditions
Certificates of indebtedness
Check clearing, exchange, transfer and collection
Collateral Department
Commercial banks, position of
Deposits
Government
Net
Chart
Of Treasury funds with banks
Detroit branch
Balance sheet
Officers and directors
Directors of Bank and Branch
Discount operations
Discount rates
Earning assets
Movement of, chart
Earnings
Examinations, department of
Exchange, Purchase and Sale of
Expenses
Federal Reserve bank notes
Federal Reserve note liabilities
Chart
Federal Reserve notes
Chart
Fiduciary powers granted
Financial results of operation
Foreign accounts
Gold settlement fund operations
Government war
financing
Leased-wire system
Liberty Loan—Victory—
Organization
Quota
Subscriptions
Liquidation of national banks
MemberAdvisory Council
Member banks
Authorized to accept up to 100 per cent
New
State banks
Money rates
National bank members, new




PAGE

:

7
7
27
7
7
3,5, 24, 44
4
17
18, 19
3,4
10-11, 35
13-15, 41-43
15
13
8
5
8, 22
23
11-12, 35-36
18
44
2
2
5
26
5, 20
21
25, 44
10
41
5, 25, 44
12-40
8, 12, 22
23
12-22-40
23
9-34
5
16
16, 43
10-11
14, 25
11
10
11, 37, 38
9, 27
2
27
.9-27, 28-34
9, 28-34
26
27

INDEX—Continued
Officers of Bank and Branch
Organization of bank
Position of commercial banks
Profit and loss statement
Quarters of bank
Reserve position
Reserves—
Cash
'
Movement of
Chart
Of State banks
Speculation, restrictions to check
Statistical tables—
Movement of earning assets
Movement of cash reserves
Movement of Federal Reserve note liabilities
Movement of net deposits
Movement of Reserve percentage
Balance sheet—-Federal Reserve Bank of Chicago
Profit and loss statement (combined)
Operations leased wire service
Discount rates, Federal Reserve Bank of Chicago
Money rates (open market) Chicago
Member banks authorized to accept
New National Bank members
National Banks liquidated
Fiduciary powers granted
Liberty Loan—-Certificates
Liberty Loan—Depositary Bank division
Liberty—Victory Loan
Liberty Loan Subscriptions by states-cities
Inter district movement of Federal Reserve notes
Denominations of Federal Reserve notes
Denominations of Federal Reserve Bank notes
Clearing system
Gold settlement fund operations
Statistics of Detroit Branch—
Balance sheet
Profit and loss statement
Total loans
Clearing House balances, settlement of
Incoming cash letters
Collection items received
Wire transfers bought and sold
Fiscal agency operations
Currency operations
State bank members
Telegraphic transfer system
Transfers bought and sold
War paper, liquidation of
War-savings

..

PAGE
2
17
4
25, 44
17
8-9
8, 9, 22
22
23
10
7-8
20
22
22
22
22
24
25
25
26
26
27
27
27
34
35
35-36
37
37, 38
39
40
40
41-42
43
44
44
45
45
45-46
46
46
47
47
9. 28-34
14—15
41
7
12,39

ERRATA
PAGE 9.—First line under heading "Fiduciary Powers." Should read
Schedule 11 instead of Schedule 10.
PAGE 12.—Last line under heading "War Savings—1919." Should
read Schedule 18 instead of Schedule 17.
PAGE 19.—Second line of last paragraph. Should read Schedules 26
to 34 instead of Schedules 26 to 33.



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