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TWENTIETH
ANNUAL REPORT

FEDERAL RESERVE BANK
OF CHICAGO
FOR THE YEAR ENDED DECEMBER 31,

1934

FEDERAL RESERVE AGENT
SEVENTH FEDERAL RESERVE DISTRICT




FEDERAL RESERVE BANK
OF CHICAGO
Chicago, February 6, 1935.
Sir:
I have the honor to submit herewith, in accordance
with the usual custom, the twentieth annual report of
the Federal Reserve Bank of Chicago, covering the
year 1934.
Respectfully,
EUGENE M. STEVENS,
Federal Reserve Agent.
HON. MARRINER S. ECCLES,
Governor, Federal Reserve Board,
Washington, D. C.




FEDERAL RESERVE BANK OF CHICAGO
Directors and Officers for 1935
CLASS

A—DIRECTORS

FRANK D. WILLIAMS, Iowa City, Iowa

(1935)

Vice-President and Cashier, The First Capital National Bank of Iowa City
JAMES R. LEAVELL, Lake Forest, Illinois

(1936)
President, Continental Illinois National Bank
and Trust Company of Chicago
EDWARD R. ESTBERG, Waukesha, Wiscon-

sin (1937)

CLASS B—DIRECTORS
NICHOLAS H. NOYES, Indianapolis, InSecretary and Treasurer, Eli Lilly and Company
MAX W. BABB, Milwaukee, Wisconsin

(1936)
President, Allis - Chalmers Manufacturing
Company
STANFORD T. CRAPO, Detroit, Michigan

(1937)

Vice-President and Treasurer, Huron Portland Cement Company

CLASS C—DIRECTORS
JAMES SIMPSON, Chicago, Illinois (1935)
Chairman, Commonwealth Edison Company
EUGENE M. STEVENS, Evanston, Illinois

(1936)

EUGENE A. DELANEY, Assistant

Chicago, Illinois,

Member Federal Advisory Council
OFFICERS
EUGENE M. STEVENS, Chairman of the

Board and Federal Reserve Agent
JAMES SIMPSON, Deputy Chairman
CLIFFORD S. YOUNG, Assistant Federal

Reserve Agent
PRUGH,

Deputy

Governor
Deputy

Governor
ARTHUR

L.

OLSON,

Assistant

Deputy

SIHLER,

Assistant

Deputy

Governor
T.

Governor
FRED BATEMAN, Manager, Securities De-

partment
ALLAN

M. BLACK, Manager, Planning

Department
JOSEPH C. CALLAHAN, Manager, Mem-

ber Bank Accounts

Department

ROBERT E. COULTER, Manager, Cash Cus-

tody Department
NEIL

B. DAWES, Manager,

Investment

Department
**IRVING FISCHER, Manager, Check De-

partment
ROBERT J. HARGREAVES, Manager,

Chairman
SOLOMON A. SMITH,

Assistant

Federal

Reserve Agent
HARRIS G. PETT, Manager, Division of

Research and Statistics
WILLIAM H. SNYDER, Controller
*JOHN J. ENDRES, Auditor

Dep-

uty Governor

ALFRED

diana (1935)

A.

WILLIAM C. BACHMAN, Assistant

OTTO J. NETTERSTROM, Assistant

President, Waukesha National Bank

GEORGE

GEORGE J. SCHALLER, Governor
CHARLES R. MCKAY, Deputy Governor
HOWARD P. PRESTON, Deputy Governor
JAMES H. DILLARD, Deputy Governor

Per-

sonnel Department
FRANK A. LINDSTEN, Manager, Disburs-

ing Department
Louis G. MEYER, Manager, Service Department
Louis G. PAVEY, Manager, Collection
Department
FRANKLIN L. PURRINGTON, Manager, Re-

construction Finance Corporation, Custody Division
JESSE G. ROBERTS, Matiager, Cash De-

partment
WILLIAM W. TURNER, Manager, Loans
CHARLES B. DUNN, Counsel

* Effective January 11, 193S.
** Deceased March 20, 1935.

DETROIT BRANCH
Directors and Officers
GEORGE B. MORLEY, Saginaw, Michigan
Chairman of Board, Second National Bank
and Trust Company of Saginaw
DAVID MCMORRAN, Port Huron, Michi-

JOHN BALLANTYNE, Detroit, Michigan
President, The Manufacturers National Bank
of Detroit

President, Heinr. Franck Sons, Inc.
JAMES INGLIS, Detroit, Michigan
Chairman of Board, National Bank of Detroit
ALFRED C. MARSHALL, Detroit, Michigan
Vice-President and General Manager, Detroit Edison Company
N. P. HULL, Lansing, Michigan
President, Michigan Milk Producers Association

RALPH H. BUSS, Managing Director
JOHN H. MARTIN, Assistant Federal Re-

gan




serve Agent
HARLAN J. CHALFONT, Cashier
ARTHUR H. VOGT, Assistant Cashier
HAROLD L. DIEHL, Assistant Cashier
WILLIAM A. EUBANK, Assistant Auditor

TWENTIETH ANNUAL REPORT
OF THE
FEDERAL RESERVE BANK OF CHICAGO

T

HE work of the Federal Reserve Bank of Chicago during
1934 continued in large measure the developments of 1933,
with two major additions—loans to industry under Sertion 13 (b) of the Federal Reserve Act, and the administration
in this district of the Federal Reserve Board's regulation of
credit for the purchase and carrying of securities, a responsibility delegated to the Board under the Securities Exchange Act
of 1934.
Upon the passage of the measure by Congress which authorized Federal Reserve banks to make loans of this character,
and the organization of the Industrial Advisory Committee,
steps were taken by this bank to disseminate information
throughout the district regarding the types of borrowers who
were eligible to apply for industrial loans, the methods of filing
applications, etc. Letters and circulars presenting information
of this character were sent to all banks in the district, both
member and non-member, to a large number of newspapers, to
chambers of commerce, and to an extensive list of others who
had indicated an interest in the possibility of obtaining this
kind of credit. An address over the radio by the Chairman of
the Industrial Advisory Committee, Mr. Max Epstein, was made
for the purpose of amplifying and clarifying many of the points
on the subject covered by the communications already sent to
banks and others, as well as bringing to the attention of as
large a section of the public as possible the provisions of the
measure authorizing the Reserve banks to extend credit of this
character. A large number of applications resulted from these
measures, the investigation of each of which entailed much care
and time on the part of the Industrial Advisory Committee in
its weekly meetings and otherwise, and by the officers of the
bank, in appraising and passing on the credits involved. Manifestly a large proportion of such applications was either ineligible
or otherwise unacceptable under the law, but substantial advances had been made by the end of the year and others were
in process, all of which it is believed will prove helpful in meeting the purposes of the act.
Under Sections 7 and 8a of the Securities Exchange Act of
1934, passed in June, the Federal Reserve Board is charged with
the responsibility of prescribing rules and regulations designed
to prevent the excessive use of credit for the purchase or carrying of securities. Accordingly, the Board late in September
issued Regulation T, "Extension and Maintenance of Credit by
Brokers, Dealers, and Members of National Securities Exchanges." Because of its location in one of the principal stock
exchange centers, the framing of the regulation as well as its




TWENTIETH ANNUAL REPORT
administration is of great importance to this bank. During the
late summer, several conferences were held here between representatives of the Chicago Stock and the Chicago Curb exchanges
and those of the Federal Reserve Board and this bank, at which
were discussed the numerous practical problems incidental to
the preparation of a regulation of such wide public interest.
Most helpful co-operation has been extended to the Board,
through this bank, by the local stock exchanges in the promulgation and administration of Regulation T. A considerable
volume of work has been performed in the matter of interpretation and administration of the Board's regulation in this district,
and a special section in this bank has been established for that
purpose.
The Federal Reserve Agent's Department, as had been the
case in 1933, carried a heavy volume of work during the past
year, some activities which had their inception at the time of
the Moratorium being virtually completed in 1934. Notable
among these was the responsibility of reviewing and recommending member banks for licensing by the Secretary of the
Treasury; at the close of the year only one member bank*
remained unlicensed, whereas at the close of 1933 there had been
106. In the matter of non-member banks, the supervising
authorities in the several States comprising this district, according to our records had licensed or otherwise disposed of all
but 46 of the 548 institutions unlicensed at the close of 1933.
Of equal significance, moreover, was the rapid and satisfactory
progress made in 1934 in the program for the rehabilitation of
the capital structure of member banks, under which common
capital of licensed member banks was reduced by nearly
$63,000,000, representing in the main the elimination of undesirable assets. In the table below is shown the number of
completed programs since the Moratorium with respect to
licensed member banks in the district, State member and national
institutions. The great majority of these plans became effective
during the year 1934.
COMPLETED PROGRAMS O F CAPITAL REHABILITATION O F LICENSED
MEMBER BANKS, SEVENTH DISTRICT, MARCH 1933 TO DECEMBER 31, 1934

Total
State Member Banks
National Banks

,T
,
.
Number of
Programs
ompleted
227
77
150

R.F.C. Purchase
of Preferred
StorV r»r
Debentures
$103,881,686
13,723,500
90,158,186

_
....
Local Aid
$11,413,357
8,569,625
2,843,732

_,
Common
Capital
Reduction
$62,990,880
4,250,575
58,740,305

In addition to the above, there were 143 member banks reorganized prior to licensing in 1933.
Considerable progress has been made, both through collections and through the aid of loans from the Reconstruction
Finance Corporation for that purpose, in payments to depositors
* This bank was licensed to reopen January 11, 1935.
4



FEDERAL RESERVE BANK OF CHICAGO
on that portion of their deposits which was waived by them
in connection with bank reorganizations and was set aside in
trust accounts. This program has been particularly notable in
Detroit.
The heavier responsibilities imposed in 1933 by the Banking
Act of 1933 continued during the past year. In that period, the
Agent's Department received, investigated, and made recommendation to the Federal Reserve Board on 282 applications of
directors and officers of national banks for permission to serve
at the same time as director or officer of other banks, in accordance with Sections 8 and 8A of the Clayton Anti-trust Act as
amended. A total of 54 applications was received under Section
32 of the Banking Act of 1933, for permission for directors or
officers of members to act at the same time as dealers in securities, together with 11 applications of holding company affiliates
for permission to vote the member bank stock which they own
or control, as required under Section 5144 of the Revised Statutes
as amended. In addition to the foregoing, there continued to
be extensive correspondence with member banks during the
past year in supplying information regarding the Banking Act
of 1933 as amended, interpretations of the Act, and regulations
of the Federal Reserve Board.
Pursuant to a request of the Comptroller of the Currency, the
Agent's Department made 98 investigations during 1934 in
connection with applications for permission to organize national
banks, and submitted recommendations with respect to them.
Section 21 of the Banking Act of 1933, provides in part that
after June 16, 1934, no person, firm, corporation, association,
business trust or similar organization, other than a financial
institution or private banker subject to examination and regulation under State or Federal law, shall engage to any extent
whatever in the business of receiving deposits subject to check
or to repayment upon presentation of a passbook, certificate of
deposit or other evidence of debt, or upon request of the depositor, unless such person, firm, corporation, association, business trust, or other similar organization shall submit to periodic
examination by the Comptroller of the Currency or by the Federal Reserve bank of the district. In conformity with this provision of law, 13 private banks in this district during 1934
submitted themselves to examination by this bank.
The Bank Examination Department of this bank during the
calendar year 1934, in addition to the 13 private institutions
noted above, conducted regular examinations of 203 State member banks, 16 examinations in connection with applications for
membership, and 15 in connection with reorganization plans.
This department also examined one affiliate of a State member
bank and participated in the examination of one national bank,
5



TWENTIETH ANNUAL REPORT
thus making or participating in a total of 249 examinations
during the year.
To carry out a recommendation made by the Federal Reserve
Agent's Conference and approved by the Federal Reserve Board
in 1933 that each Federal Reserve Agent have on his examining
staff a thoroughly trained man to examine trust departments,
such a person was employed by this bank, assuming his duties
February 1, 1934. During the remaining eleven months of that
year, 33 examinations and investigations of trust departments
were made. Ten applications of national banks for fiduciary
powers were investigated, some of which required an examination of trust accounts of non-operating banks whose trust business the applicant proposed to take over. Much time and effort
were spent by the Trust Examiner in trust departments of State
banks recently admitted to membership, and in those of such
national banks as had recently been granted fiduciary powers by
the Federal Reserve Board for the first time or had been granted
additional powers. This work was primarily of an educational
and advisory nature in bringing methods into conformity with
standard practices and correcting errors made through inexperience. It is believed that the specialized examination of trust
departments has been of great benefit in that field, and that this
work has resulted in the attainment of higher standards in trust
administration.
Inquiries regarding membership decreased in 1934 as compared with the preceding year: 51 such inquiries were received
as against 240 in 1933, and 14 non-member State banks were
admitted to membership as against 43 subsequent to the Moratorium in 1933.
On January 30, 1934, the President approved the Gold Reserve
Act of 1934, under the terms of which measure title to the entire
stock of monetary gold in the United States, including the gold
coin and gold bullion heretofore held by the Federal Reserve
banks and the claim upon gold in the Treasury represented by
gold certificates, passed to the United States Government. Accordingly, title to gold holdings of this bank was transferred to
the United States Government on January 30, and in exchange
therefor there have been received credits on the books of the
United States Treasury and gold certificates as provided in the
Gold Reserve Act.
The Seventh Federal Reserve district, largely because of its
wide diversification of business and industry, was selected by
the Treasury of the United States as the field for a special survey
relating to the availability of bank credit, undertaken by a
corps of special investigators during the month of September.
The study was under the general direction of Jacob Viner and
Charles O. Hardy, who submitted a report of their findings to
the Secretary of the Treasury. The survey covered not only the
availability of credit with respect to commercial banks, but also



FEDERAL RESERVE BANK OF CHICAGO
embraced studies of Federal direct loans to industry, including
loans by Federal Reserve banks as well as the Reconstruction
Finance Corporation. All possible co-operation was extended
by this bank not only in placing at the disposal of the investigators all pertinent facts desired, but also in rendering assistance
in making contacts with commercial banks. Office space and
stenographic assistance were likewise extended in connection
with the survey.
BANKING DEVELOPMENTS

Seventh district banking reserves increased in 1934, mainly
the result of the movement into the district of more than 113
million dollars from inter-district commercial and financial transactions. The amount of reserve bank credit extended locally,
however, was lower by 3^ millions at the close of 1934 than a
year previous, due for the most part to lessened borrowings
by member banks. Treasury and National bank currency available through the Chicago Reserve bank declined almost 18 million dollars. Member banks showed an increase in their reserve
balances of 138| million dollars, reflecting primarily the movement of funds into the district, although lessened demand for
currency and an increase in local Treasury collections over disbursements were also factors. The total volume of credit extended by the Chicago Federal Reserve bank outstanding on
December 31, 1934, amounted to $429,339,000, a decrease of 25
millions from the close of the preceding year. Changes in the
uses and sources of Seventh district banking reserves during
the year are shown in detail in the accompanying tabulation.
CHANGES BETWEEN DECEMBER 31, 1933 AND DECEMBER 31, 1934 IN FACTORS
AFFECTING USE OF FEDERAL RESERVE BANK FUNDS
SEVENTH DISTRICT
(Amounts in thousands of dollars)
Reserve bank credit extended (exclusive of amounts to other districts)
—3,610
Commercial operations through inter-district settlements
+113,480
Treasury and National bank currency
—17,765
Total supply
Demand for currency
Member bank reserve balances
Treasury cash and deposits at Federal Reserve Bank of Chicago
Special and "all other" deposits
Other Federal Reserve accounts
Total demand

+92,105
—51,546
+138,503
+33,976
—15,551
—13,277
+92,105

The movement toward lower rates of interest paid by banks
continued in 1934. At the close of the year a substantially
greater number of banks than a year ago, both city and country
institutions, were paying not to, exceed two per cent on time
deposits. Such reduction in interest paid, together with the
inauguration of service charges, has enabled many banks which



7

TWENTIETH ANNUAL REPORT

otherwise in all probability would have sustained a loss, to show
a profit on the year's operations.
Banks in this district, as in others, were in an unusually liquid
condition during 1934, the outgrowth, in large measure, of a
greatly increased volume of deposits, coincident with continued
small demand for loans. Deposits of all licensed memberT banks
in the Seventh district, which on December 31, 1933 w ere reported as $3,134,778,000, by December 31 of last year had increased to $4,169,762,000, a gain of more than one billion dollars
or about 33 per cent. Loans, on the other hand, in the same
period declined approximately 11 per cent, or from $1,207,918,000
at the end of 1933 to $1,074,421,000 on December 31, 1934.
Banks closed in the district during 1934 were predominantly
non-member institutions which had failed to qualify for a license
to reopen on an unrestricted basis since their enforced closing
in the Moratorium of March 1933. As shown in the accompanying table, only 17 licensed banks—all of which were nonmembers—involving deposits of $2,512,000, were suspended in
the current year, whereas non-licensed banks placed in liquidation or receivership numbered 259 with deposits amounting to
$98,256,000. Of these, 176 were non-members, 9 had been members but had withdrawn from the System prior to closing, and
74 were national banks. A great many of the national institutions closed were partially succeeded by newly organized national banks. Reopenings of closed banks totaled 27, of which
number 9 had been licensed subsequent to the Moratorium.
BANKS SUSPENDED AND NON-LICENSED BANKS PLACED IN LIQUIDATION OR
RECEIVERSHIP, JAN. 1 TO DEC. 31, 1934
SEVENTH FEDERAL RESERVE DISTRICT
Licensed ban ks suspended1

Xon-licensed banks placed
in liquidation or
receivership2

Number of
banks
State bank members.
Non-member banks

Deposits3
(in thousands
of dollars)

Number of
banks

Deposits3
(in thousands
of dollars)

17

2,512

74
9*
176

60.828
8,809*
28,619

17
2,512
Total
259
98.256
Includes banks placed on a restricted basis.
Includes non-licensed banks absorbed or succeeded by other banks.
Deposits of non-licensed national banks placed in liquidation or receivership are as of dates of
conservatorship; deposits of non-licensed State bank members placed in liquidation or receivership
are as of the nearest call dates prior to liquidation or receivership; and deposits of non-member
banks are. for the most part, as of dates of liquidation or receivership.
4
None of these banks received licenses following the banking holiday and all withdrew from the
Federal Reserve System before being placed in liquidation.
1
2
3

Mergers and absorptions, though greater in number than in
the preceding year, nevertheless reflected a continuance of the
declining trend in effect since 1931 in number and size of banks
consolidating—the 38 banks eliminated in the current year comparing with 30 in 1933, 60 (revised figure) in 1932, and 209 in
1931. Capitalization of the banks entering into the mergers and



8

FEDERAL RESERVE BANK OF CHICAGO

the loans and investments involved were very small in 1934 as
well as in 1933 and 1932.
There was little change in 1934 in group and chain banking,
other than the elimination of six small chains (through either
the diffusion of controlling interest or the suspension of constituent banks) and a continuance of the practice noted in 1932
of merging constituent banks in a group and converting them
into branches. The most notable example of this trend in the
current year was the conversion through purchase by the First
Wisconsin National Bank of Milwaukee of nine of its affiliated
banks in Wisconsin Bankshares Corporation. The lack of banking facilities in many towns in this district has continued in 1933
and 1934 to be met partially by an increase in branch offices
and receiving and disbursing stations, notably in Iowa and
Wisconsin.
INDUSTRIAL, AGRICULTURAL AND TRADE CONDITIONS

The production of goods and merchandising of commodities
in the Seventh Federal Reserve district recorded substantial
gains in 1934 over the preceding year, and industrial employment
and payrolls averaged much higher. In the latter half of the
year, a gradually declining trend was apparent, and this coupled
with the fact that activity was accelerating at the same time in
1933 narrowed considerably the margin of gain for this period
over the corresponding months a year previous, in some cases
erasing it entirely, but agg'regates for the year as a whole exceeded those of 1933. In several of the manufacturing groups
the volume of business was greater than for any year since 1930,
the automobile industry furnishing a notable example of this
fact. In contrast, agricultural production in 1934 was much
lower than in 1933 and in most instances below average, although higher prices, emergency relief measures, and A. A. A.
benefit payments increased farm income sharply.
As has been stated, output of automobiles in 1934 was greater
than for any year since 1930, total production showing increases
of 45, 103, and 16 per cent, respectively, over the years 1933,
1932, and 1931. The rate of steel production averaged higher
than in either 1933 or 1932, and at times exceeded that of the
corresponding period in 1931; the peak of the year was reached
in June when operations were close to 70 per cent of capacity.
Shipments of steel castings from foundries in the district increased 80 per cent in tonnage volume and 88 per cent in dollar
value in the year 1934 over 1933, while gains in those of malleable
castings amounted to 46 and 63 per cent, respectively. Shipments of stoves and furnaces exceeded those of 1933 by 40 per
cent. In the building industry a substantial improvement was
recorded in 1934 in comparison with the record low volume of




TWENTIETH ANNUAL REPORT
a year previous and a more moderate gain was shown over 1932,
the value of total contracts awarded in the district increasing
37 and 20 per cent, respectively, over these two years. Expansion in this industry was concentrated for the most part in
building other than residential during the first six months of the
year. The movement of building materials followed the trend
of construction in showing improvement over 1933, although,
with the exception of cement, considerable betterment had been
evident in the latter part of that year. A further small gain
was experienced in 1934 by furniture manufacturers of the district, shipments of reporting firms totaling 6 per cent greater
than in 1933. Shoe production likewise showed a moderate increase—9 per cent—over the preceding year, despite the fact
that output in the second half of the year was 5 per cent below
the first half and only 2 per cent heavier than in the corresponding period of 1933.
Commercial production of packing-house products in 1934 declined 3 per cent from the volume of a year previous, but total
production which included over one billion pounds of commodities from animals slaughtered as emergency relief measures,
increased 4^ per cent in the comparison. The tonnage of these
products sold decreased 2\ per cent during the year, but the
value of sales billed to domestic and foreign customers increased
27\ per cent, prices averaging at least 30 per cent higher in 1934
than a year earlier. Production of creamery butter in the district declined 3\ per cent from 1933, while sales expanded 1^ per
cent. The 1934 manufacture of Wisconsin cheese gained 4 per
cent over that of the preceding year and exceeded distribution of
the commodity, which increased 2\ per cent.
The year 1934 closed with employment of industrial workers
in the district at a level 14 per cent higher than at the end of
1933, while employment for the year as a whole averaged 25 per
cent above that of a year previous. Wage payments were 29 per
cent heavier in December 1934 than a year earlier and averaged
39 per cent larger for the entire year than in 1933. Among the
industries maintaining an especially favorable margin over the
preceding year was the vehicles group which in December was
employing approximately one-third more men and paying out
one-half more in wages than a year previous.
Wholesale and retail trade conditions in the Seventh district
showed further improvement in 1934 over the expansion begun
after the first quarter of 1933. In reporting groups of wholesale
trade, increases in sales for the calendar year 1934 over the
preceding twelve months amounted to \\\ per cent in groceries,
16^ per cent in drugs, 26 per cent in dry goods, 30 per cent in
hardware, and 36 per cent in electrical supplies. Sales of over
100 reporting department stores in the district totaled 18 per
cent heavier in 1934 than a year previous. Of the larger cities
in the district, Detroit recorded the largest gain—30 per cent—
10



FEDERAL RESERVE BANK OF CHICAGO
Indianapolis trade increasing 14 per cent, Milwaukee 13 per cent,
and Chicago 12 per cent. Stores in smaller centers sold a dollar
volume 23 per cent in excess of that sold in 1933. Sales of shoes
by reporting dealers and department stores were 17 per cent
larger in 1934 than a year earlier, and those of furniture and
house furnishings aggregated 23 per cent more. Chain store
trade, as reflected in the sales of thirteen reporting chains, exceeded that of 1933 by 9 per cent, with the number of units
operated averaging less by one per cent—included in these data
are five-and-ten-cent store, drug, grocery, cigar, shoe, men's
clothing, and musical instrument chains.
With few exceptions, agricultural production in the Seventh
district was sharply lower in 1934 than in 1933, and in most
instances considerably under the 1927-31 average. The greatest
losses from drought damage occurred in feed crops; and short
feed supply and the production control measures of the Agricultural Adjustment Administration greatly reduced the number
of cattle and hogs on farms. The number of beef cattle for marketing during the winter and early spring was reported as 5 per
cent smaller on December 1 than a year earlier, and there was
a similar decline in dairy cattle. Moreover, county agents reporting directly to this bank anticipated a heavier slaughter of
dairy animals during the winter months than in the corresponding period a year previous. The 1934 spring crop of pigs showed
a recession of 15 to 20 per cent from 1933 and the autumn crop
decreased 35 to 40 per cent, though farrowing conditions were
about normal with litters of average size and mortality was no
greater than usual. Cash farm income of the five States including the Seventh district increased about 25 per cent in 1934
over 1933 and 40 per cent over 1932, owing to the influence of
a marked rise in prices over 1933 as well as to A. A. A. benefit
and rental payments in the amount of nearly $100,000,000 for
production control and for emergency relief extended to farmers
through drought purchases of cattle and calves.
DETAILS OF OPERATION OF THE FEDERAL RESERVE BANK
OF CHICAGO IN 1934

Financial Results—Net earnings of this bank in 1934, after
depreciation, reserves, etc., were $1,404,491, as against $1,790,493
in 1933 and $2,242,725 in 1932. Dividends in the amount of
$761,334 were paid and $669,479 was transferred to surplus (Sec.
7). A new surplus account (Sec. 13b) was set up during the
year through advances from the Treasury of $733,035, authorized
under Section 13b of the Federal Reserve Act as amended, in
connection with loans to industry by the Federal Reserve banks.
Charges were made in 1934 of $19,748,517 against surplus (Sec.
7) to cover purchase of Federal Deposit Insurance Corporation
stock and $26,322 against surplus (Sec. 13b), the latter being
11



TWENTIETH ANNUAL REPORT

credited to profit and loss, to cover the United States Treasury
portion of Industrial Loan expense. Therefore, the balance in
surpluses at the end of 1934 amounted to $21,350,361 in Section 7
and $706,713 in Section 13b, as compared with a balance of
$40,429,399 in surplus (Sec. 7) at the close of 1933.
Loan and Discount Operations—Owing to rehabilitation in
capital structure and a rise in deposits during the year 1934,
banks generally experienced strong cash positions, which
enabled them to meet readily through their own resources their
local seasonal demands for credit. The result was that very
few member banks found it necessary to rediscount or borrow
at the Federal Reserve Bank. Loans to member banks were
abnormally low throughout the year, and during portions of the
year every member bank in the Seventh Federal Reserve district
was out of debt to the Federal Reserve Bank. The high point
of member bank borrowings was $3,906,401 on January 2, 1934,
and on December 31, 1934, loans to member banks aggregated
$1,956.
With the passage by Congress in June of 1934 of an amendment to the Federal Reserve Act, Section 13b, and the issuance
by the Federal Reserve Board of Regulation S, authorizing Federal Reserve banks to make discounts, purchases, loans, and
commitments to provide working capital for established industrial or commercial businesses, steps were taken to provide
facilities for the handling of applications for credit under such
regulation.
A total of 51 industrial loans and commitments, aggregating
$3,796,500, had been approved by the end of the year. Of this
amount, $924,400 was disbursed to 19 applicants, 13 of these
loans, totaling $461,800, being made direct to borrowers, and six
loans being made in the form of participations with other financing institutions, the portion advanced by the Federal Reserve
Bank under such participations amounting to $462,600. One
commitment has been entered into with a financing institution,
under which the Federal Reserve Bank has agreed to purchase
within the prescribed time notes aggregating $30,000.
On December 31, 1933, the Failed Banks Account totaled
$728,683, representing liabilities of 44 banks. During the year,
four additional claims, totaling $55,879, were transferred to the
account. On December 31, 1934, this account had been reduced
to an aggregate amount of $25,944, involving three banks.
Open-Market Operations—The total value of United States
Government securities handled by the Investment Department
during 1934, including allotments from other Federal Reserve
banks in the System's Special Investment Account, showed a
substantial decrease from 1933. This decline was occasioned by
relative inactivity of the Federal Reserve System in the purchase
and sale of Government securities, as evidenced by the fact that
12



FEDERAL RESERVE BANK OF CHICAGO
our holdings of these obligations, including participation in the
System Account, remained practically constant throughout the
year. Although the value of Government securities handled for
member banks increased more than 45 per cent, the total value
of all United States Government obligations handled by the
Investment Department of the Federal Reserve Bank of Chicago
decreased 28^ per cent as compared with 1933. The aggregate
number of transactions, however, was 14 per cent greater than
a year earlier.
Subsequent to the purchase of a small amount of bankers'
acceptances in January and February, open-market bill rates declined below this bank's buying rate, with the result that no
additional purchases were made and holdings fell to the exceptionally low level of $648,600 on May 16, 1934, and amounted to
only $707,178 on December 31.
COMPARATIVE T A B L E O F G O V E R N M E N T S E C U R I T Y TRANSACTIONS
1934, 1933, A N D 1932
(Inclusive of transactions with member banks and with other Federal Reserve banks)
(AMOUNTS I N T H O U S A N D S OF DOLLARS)
1933

1934
Number
of Transactions
Certificates of Indebtedness, Treasury Notes, and U. S. Bonds:
*Market Purchases
*Market Sales
fSold under Agreement .
Totals

Amount

12,745
24,646

614,806
558,110

37,391

1,172,916

1932

Number
of Transactions

Amount

Number
of Transactions

Amount

12,141
20,741
3
2
32,887

925,178
714,323
505
505
1,640,511

17,112
11,434
13
11
28,570

753,803
515,614
25,844
25,844
1,321,105

*These figures include special Certificates of Indebtedness to cover overdrafts amounting to none
in 1934, $14,000,000 in 1933, and $24,000,000 in 1932.
jlnclusive of Agreements purchased through other Federal Reserve banks.

Member Bank Reserves: Reserve Ratio—Reserve balances of
member banks in the Seventh district continued considerably in
excess of legal requirements throughout 1934, this excess ranging from a low of 101.39 per cent in February to 141.49 per cent
in July. In the preceding year, the minimum excess was 39.24
per cent in May and the maximum 138.70' per cent in November.
The ratio of the Federal Reserve Bank of Chicago's total reserves to deposit and Federal Reserve note liabilities combined
was at its lowest point on January 10—69.2 per cent—and at a
maximum on August 29—73.9 per cent. These figures compare
with the 1933 maximum of 81.0 per cent on May 24 and the
minimum of 46.6 per cent on March 8.
Membership, Fiduciary Powers, and Bank Relations—The following figures reflect changes during 1934 and the two preceding
13



TWENTIETH

ANNUAL

REPORT

years in status of banks, affecting membership :
1934
Total losses to membership through consolidations, conversions,
liquidations, successions, suspensions, and voluntary withdrawals
147
Total additions to membership through admissions, conversions,
primary organizations, reopenings, and successions
93
Net losses during the year
Total withdrawals pending at close of the year due to consolidations, suspensions, etc

1933

1932

172

158

106

23

54

66

135

7

54

21

The following banks were authorized and approved in 1934 to
exercise fiduciary powers:
fCharleston, The Charleston National Bank
Illinois:
Chicago, Liberty National Bank of Chicago
fCicero, First National Bank
Elgin, First National Bank
f Monticello, National Bank of Monticello
Danville, First National Bank
Indiana:
fFranklin, The Johnson County National Bank of
Franklin
fGoshen, The First National Bank of Goshen
*Lafayette, Lafayette National Bank
Marion, Marion National Bank of Marion
fTerre Haute, The Merchants National Bank of
Terre Haute
Wabash, The First National Bank in Wabash
fBoone, Citizens National Bank of Boone
Iowa
Fairfield, First National Bank in Fairfield
|Gladbrook, First National Bank
Michigan: f Flint. National Bank of Flint
Wisconsin yFond du Lac, National Exchange Bank of Fond
du Lac
fSouth Milwaukee, The Home State Bank
* Limited powers—for specific trusts only.
f Partial.
t Supplementary.
All others full powers.
Member Banks—Seventh Federal Reserve District
December 31, L934
National

December 31, 1933

State Total National

December 31, 1932

State Total National

State Total

Illinois
Indiana
Iowa
Michigan
Wisconsin

187
85
127
57
71

50
6
25
72
11

237
91
152
129
82

204
91
139
65
77

48
6
24
82
9

252
97
163
147
86

218
110
166
70
90

22
9
21
95
10

240
119
187
165
100

Total

527

164

691

576

169

745

654

157

811




14

FEDERAL RESERVE BANK OF CHICAGO
Representatives of the Bank Relations Department made 477
visits to banks in the district during the year; most of these
were to members of the Federal Reserve System.
Fiscal Agency—The activities of the Fiscal Agency Department continued to increase in the year 1934, the dollar value of
securities handled being approximately 10^ per cent above the
total of a year previous.
P I E C E S A N D DOLLAR V A L U E O F SECURITIES HANDLED
Per Cent
change from 1933
+ 10J4
+92

1934
$3,931,535,396
1,358,752 pieces

SUBSCRIPTIONS FOR N E W ISSUES (INCLUDING TREASURY BILLS
AND CORPORATION BONDS)
Per cent
1934
change from 1933
Subscriptions received
$4,289,031,600
—2^
Number of subscriptions
37,872
+ 7lyi
Subscriptions allotted
$1,389,426,000
+ 35^
Number of shipments
39,905
+H7J4
Number of pieces shipped
270,482
+ 47^
Dollar value of shipments
$1,358,969,650
+5

The difference between dollar value of shipments and subscriptions allotted mainly represents transfers on allotment to
and from other Federal Reserve banks.
P A Y M E N T F O R S E C U R I T I E S ALLOTTED W A S MADE AS F O L L O W S
Per cent
1934
change from 1933
By surrender of other Government securities
$ 587,088,700
+24
By credit in W a r Loan Deposit Account
183,663,692
—4/100
By cash
619,776,690
— 9
By discount on Treasury bills and Home Owners' Loan
"Corporation bonds
492,460
—20^2
$1,391,021,542
770,742

+ 4

$1,390,250,800

Less premiums and accrued interest

+ 4

Fourth 4J% L. L. Registered Bonds amounting to $824,800,
on which allotment was made in 1933 and on which payment
and delivery was completed in 1934, comprise the difference
between subscriptions allotted and payments.
EXCHANGES (OTHER THAN FOR N E W ISSUES)
1934
634,011
$1,498,085,225
347,091
$1,683,361,300

Pieces received
Amount received
Pieces delivered
Amount delivered

Per cent
change from 1933
+114
+ 33'/S
+ 10J/2
+42^

SECURITIES REDEEMED
Number of pieces
Amount

454,259
$1,074,480,521
COUPONS

Number
Amount

of pieces

+99
— 6

REDEEMED
4,007,202
$80,985,323

+20^
+21

During the year the Fiscal Agency Department, including the
Detroit Branch, for account of the Reconstruction Finance Corporation, made 1,353 advances for a total of $267,086,016 and
repayments for the same period amounted to $223,561,741.
15



TWENTIETH ANNUAL REPORT

In addition to acting as Fiscal Agent for the Reconstruction
Finance Corporation, this bank has likewise continued to perform similar functions on an increased scale for the following:
Federal Emergency Administration of Public Works
Home Owners' Loan Corporation
Farm Credit Administration
Gold Settlement Fund—Transactions in the Gold Settlement
Fund between the Seventh and other Federal Reserve districts
recorded a gain to this bank in 1934 of $49,341,000, as contrasted
with a loss of $69,194,000 in 1933. Receipts from other Federal
Reserve districts totaled $11,721,797,000 and payments amounted
to $11,672,456,000. Both of these figures represented gains over
the $11,174,667,000 received and $11,243,861,000 paid out for
similar transactions a year earlier. This bank's Gold Settlement
Fund balance amounted to $206,228,067 on December 31, 1934,
as compared with $160,423,258 at the close of 1933.
Clearings and Collections—The total volume of checks handled
during the year 1934 by the Head Office and the Detroit Branch
combined was 24,746,832 items greater than in 1933.
The total number of checks increased 26.8 per cent; those
payable in Chicago and Detroit increased 15.4 per cent; those
payable outside of these cities increased 20.3 per cent; and Government checks increased 127.5 per cent. The large increase in
Government checks included about 8,126,000 items amounting
to more than $146,600,000, representing checks issued by the
Civic Works Administration.
The total number of items handled during the year by both
offices was 117,104,437 (including duplications), amounting to
$22,744,114,000, of which number 79.5 per cent were drawn on
banks in the Seventh district, 7.2 per cent on banks in other
districts, and 13.3 per cent on the United States Treasurer.
On December 31, 1934, there were 512 banks using the Federal
Reserve check collection facilities, as compared with 620 on
December 31, 1933. The smaller number of banks using these
facilities in 1934 resulted largely from the liquidation of many
banks which had been in the hands of conservators in 1933, all
of which conservators were required to send their collection
items to the Federal Reserve Bank.
The total number of non-cash letters handled by the Federal
Reserve Bank of Chicago and its Detroit branch during the year
was 835,878, an increase of 6,668 over a year previous. The
aggregate value of these non-cash collections was $1,531,440,891,
as compared with $996,521,162 in 1933. Of the foregoing 1934
totals, Detroit handled 157,658 items valued at $138,778,643, as
against 172,585 items and $105,727,404 a year earlier.
The amount of funds transferred by Chicago and Detroit for
member banks declined further in 1934, totaling only $12,519,172,837, as compared with $13,194,452,934 in 1933. Of the 1934
16



FEDERAL RESERVE BANK OF CHICAGO
total, $7,997,597,683 was transmitted over leased wires and
$1,436,262,583 over commercial wires. All other transfers comprised the remaining $3,085,312,571.
Cash Department—The amount of paper currency handled in
the Cash Department during 1934 was considerably less than
in the preceding year, as there was unusual currency activity in
1933 prior to the banking holiday. Payments of paper currency
aggregated $1,827,906,000, as compared with $2,387,942,000 in
1933. Currency received amounted to $1,866,933,000, as compared
with $2,366,761,000 in the preceding year.
Federal Reserve note circulation of this bank increased
$43,741,000 from $755,280,000 on January 30 to $799,021,000 on
December 24. All of this bank's outstanding Federal Reserve
bank notes were retired in 1934.
No gold coin or gold certificates were paid out during the year.
Gold coin received amounted to $5,043,000, as compared with
$67,081,000 in 1933; and gold certificates received amounted to
$16,717,000, as compared with $129,302,000 during the preceding
year. There was considerable increase in the demand for silver
and minor coin, payments amounting to $25,473,000, as compared
with $22,418,000 a year previous.
The number of paper currency shipments to country banks
was 33,628 as against 39,379 in 1933. The number of coin shipments to country banks was 9,547 in 1934 and 9,238 in 1933.
Collateral and Safekeeping Operations—The amount of securities and paper held by this bank as collateral for bills discounted and for loans rose from the low level of the year in
1934—$114,264,986 on January 3—to a high point of $332,670,743
on May 22. From this point it was reduced to $214,256,293 on
December 31.
The volume of work handled by the Safekeeping Division during 1934 far surpassed that of any previous year, largely because
97^ per cent of this bank's total membership availed itself of this
service: many banks did considerable trading in their bond
accounts, taking advantage of any appreciation in the market
value of their securities. The turn-over in safekeeping, therefore, amounted to nearly 80 per cent of the total value of securities received in the division during the year. Pieces to the
number of 274,196 valued at $1,292,816,131 were received at the
Federal Reserve Bank of Chicago and its Detroit branch during
1934, as compared with 124,419 pieces in 1933, having an aggregate value of $490,617,549. Withdrawals from safekeeping numbered 202,370 pieces valued at $1,012,694,861, in contrast to
141,817 pieces amounting to $426,778,524 withdrawn a year
earlier. Holdings in this division were approximately 75 per
cent heavier on December 31, 1934 than at the close of 1933.
17



TWENTIETH ANNUAL REPORT
Internal Organization—At a special election held April 26,
1934, Frank D. Williams, Vice-President and Cashier of The
First Capital National Bank of Iowa City, Iowa City, Iowa, was
elected Class A director to fill the unexpired term of George J.
Schaller, who resigned March 2, 1934, to become Governor of
the Federal Reserve Bank of Chicago.
At the regular annual election, Edward R. Estberg was reelected a Class A director for the term expiring December 31,
1937, and Stanford T. Crapo was re-elected a Class B director
for the term expiring December 31, 1937.
The term of Frank C. Ball, a Class C director, expired December 31, 1934.
Eugene M. Stevens has been re-designated as Chairman of
the Board and Federal Reserve Agent for the year 1935, and
James Simpson has been re-designated as Deputy Chairman of
the Board for the year 1935.
The directors for 1935 are shown on page 2.
The Executive Committee for 1935 will consist of the following: Chairman, George J. Schaller, Governor; Eugene M.
Stevens, Chairman of the Board and Federal Reserve Agent;
Messrs. James R. Leavell, James Simpson, Edward R. Estberg,
Frank D. Williams; alternates, Messrs. Max W. Babb and
Nicholas H. Noyes.
The Committee on Admission for 1935 will consist of the following: Eugene M. Stevens, Chairman of the Board and Federal
Reserve Agent; George J. Schaller, Governor; Edward R.
Estberg, Director; alternates, Clifford S. Young, Assistant Federal Reserve Agent, Howard P. Preston, Deputy Governor, and
James Simpson, Director.
There were two appointments to the official staff during the
year 1934: Allan M. Black, Manager, Planning Department,
April 27, 1934; John J. Endres, Assistant Auditor, September 1,
1934.
There were four resignations from the official staff during the
year 1934: James B. McDougal, Governor, March 1, 1934; Ralph
H. Buss, Assistant Deputy Governor, March 12, 1934, to become Managing Director of the Detroit Branch, July 1, 1934;
Francis R. Burgess, Auditor, August 31, 1934; Walter A.
Hopkins, Assistant Auditor, August 31, 1934.
There were three changes of titles in the official staff during
the year 1934: George J. Schaller from Acting Governor to
Governor, March 2, 1934; Arthur L. Olson from Manager of
the Loans and Discount Department to Assistant Deputy Governor, July 1, 1934; Franklin L. Purrington from Manager of
18



FEDERAL RESERVE BANK OF CHICAGO
the Discount Department to Manager of Reconstruction Finance
Corporation Custody Division, March 12, 1934.
The following is a comparison of the total number of employes,
exclusive of officials at the Chicago office:
December 31, 1933
1,396
December 31, 1934
1,294
Decrease

102

In addition to the above, there were 54 temporary employes
on December 31, 1933, and 5 on December 31, 1934.
Alfred C. Marshall, Vice-President and General Manager of
the Detroit Edison Company was appointed a director of the
Detroit Branch by the Federal Reserve Board for a term of
three years, beginning January 1, 1935.
James Inglis was appointed a director of the Detroit Branch
by the Federal Reserve Bank of Chicago for a term of three
years, beginning January 1, 1935, succeeding Wilson W. Mills
whose term expired December 31, 1934.
Ralph H. Buss was re-appointed Managing Director of the
Detroit Branch for the year 1935.
The directors for 1935 are shown on page 2.
There were two appointments to the official staff at the
Detroit Branch during the year 1934: Ralph H. Buss, Managing Director, July 1, 1934; Harold L. Diehl, Assistant Cashier,
April 27, 1934.
There were three resignations from the official staff of the
Detroit Branch during the year 1934: William R. Cation, Managing Director, June 30, 1934; John G. Baskin, Assistant Cashier,
May 8, 1934; Isadore Levin, Assistant Counsel, December 31,
1934.
The following is a comparison of the total number of employes, exclusive of officials, at the Detroit Branch:
December 31, 1933
313
December 31, 1934
278
Decrease




35

19

TWENTIETH ANNUAL REPORT
Earnings and Expenses
EARNINGS

l'.iiit

Discounted bills
Purchased bills
Industrial advances
United States Government securities
Commitments to make industrial advances.
Deficient reserve penalties
Miscellaneous

in:;:;

48,227 $
618,806 $ 1,336,846
17,069
234,060
367,299
9,422
7,843,286
5,667,501
3,455,199
2
20,554
717
53,856
233,648
223,633
400,471

Total earnings.

S 8,152,371 $ 6,764,554

5,613,671

323,355
1,437,279
489,475

322,012
1,449,098
410,210

252
1,281
13,098

240
138
1,400
12,532

CURRENT EXPENSES

Salaries:
Officers
Clerical employes
Other employes
Contributions—Retirement System
Governors' conferences
Federal Reserve agents' conferences
Federal Advisory Council
Directors' meetings
Industrial Advisory Committee
Traveling expenses!
Assessments for Federal Reserve Board's expenses.
Legal fees
Insurance on currency and security shipments
Other insurance
Taxes on banking house
Light, heat, power, and water
Repairs and alterations, banking house
Rent
Office and other supplies
Printing and stationery
Telephone
Telegraph
Postage
Expressage
Miscellaneous expenses

354,298
1,440,274
463,886
170,660
263
370
924
9,212
976
32,104
164,711
4,117
34,256
27,317
135,822
44,543
19,428

$

Total current expenses.

' 37,769
46,882
20,844
33,973
249,096
49,309
77,855

3,427,125

3,329,804

3,292,737

72,310
23,949
28,454

Total, exclusive of cost of currency
Federal Reserve currency:
Original cost
Cost of redemption
Tax on Federal Reserve bank note circulation.

34,837
43,960
18,872
25,000
264,568
54,029
82,698

37,070
101,295
14,107
51,191
39,673
96,109
48,568
15,152
1,079
47,488
71,535
29,709
34,519
323,666
64,448
89,104

397,865
30,185
96,155

122,299
17,657

21,429
97,988
16,598
43,341
44,509
292,193
37,127
28,194

$ 3,551,838 f 3,854,009 $ 3,432,693

PROFIT AND LOSS ACCOUNT
Earnings
Current expenses.
Current net earnings.

1KU

v.m

$ 8,152,371 $ 6,764,554 % 5,613,671
3,551,838
3,854,009
3,432,693

$ 4,600,533 $ 2,910,545

Additions to current net earnings:
Profit on United States Government securities sold.
All other

2,180,978

373,245

874,264

233,940
24,545
717,260
500,000
17,552

233,682
14,588
21,593
500,000
42,654

$ 4,808,032 $ 1,493,297

Total deductions.
Net deductions from current net earnings.
Net additions to current net earnings

873,140
1,124

$ 2,434,800
16,506
1,352,519
1,000,000
4,207

Deductions from current net earnings:
Bank premises—depreciation
Furniture and equipment
Reserve for losses
Reserve for self-insurance
All other

140,466
232,779

$ 1,611,990

Total additions.

1,498,266
113,724

812,517

$ 3,196,042 $ 1,120,052

Net earnings

61,747

1,404,491 $ 1,790,493 $ 2,242,725
761,334
669,479
26,322

Dividends paid
Transferred to surplus (sec. 7)
Withdrawn from surplus (sec. 13b)
Franchise tax paid United States Government.

858,127
932,366

1,029,933
121,279
1,091,513

fOther than those connected with governors' and agents' conferences and meetings of directors, the
Federal Advisory Council, and the Industrial Advisory Committee.




20

FEDERAL RESERVE BANK OF CHICAGO
Earnings and Expenses—Continued
SURPLUS ACCOUNT (SEC. 7)

1933

1934

1932

Surplus, beginning of year
$40,429,399 $39,497,033 $38,411,011
Additions to surplus:
932,366
121,279
669,479
Transferred from net earnings
Withdrawn from reserve for depreciation on United States
964,743
bonds
Charges to surplus:
19,748,517
Purchase of Federal Deposit Insurance Corporation Stock
Surplus, end of year

$21,350,361

S U R P L U S A C C O U N T (SEC. 13b)

$40,429,399 $39,497,033

1934

Surplus, beginning of year
Additions to surplus:
Advances b y United States Treasury
Charges to surplus:
United States Treasury portion of Industrial Loan Expense..

$

1933

1932

733,035
26,322

Surplus, end of year

706,713

Comparative Volume of Operations in Principal Departments
19S4, 19SS and 193$

Number of Pieces Handled

1933

urn

Bills discounted:
Applications
Notes discounted
Bills purchased in open market and from other Federal Reserve banks for own account
Currency received and counted
Coin received and counted
Checks handled
Collection items handled:
United States Government coupons paid
AH other
United States securities—issues, redemptions, and
exchanges b y Fiscal Agency department
Transfers of funds
Envelopes received and dispatched

225*"
543*"
509
368,708,000
286,505,000
117,104,000

4,839*
27,853*
8,090
362,955,000
287,877,000
92,358,000

1932
15,294
92,948
2,260
359,168,000
290,267,000
99,242,000

3,331,000!
829,000

3,252,000t
757,000

l,359,000t
173,000
4,140,000

189,000
4,743,000

708,000f

386,0001
224,000
4,511,000

1934

Amounts Handled

4,007,000t
836,000

1933

1932

Bills discounted
[
15,307,000*" $ 435,932,000* $ 1,054,336,000
Bills purchased in open market and from other Federal Reserve banks for own account
137,062,000
84,447,000
7,560,000
Currency received and counted
1,878,222,000
2,495,284,000
2,184,821,000
Coin received and counted
26,670,000
136,750,000
27,859,000
Checks handled
17,601,483,000
22,744,114,000
16,928,240,000
Collection items handled:
United States Government coupons paid
80,985,000t
66,969,000t
64,095,000t
All other
:
1,531,441,000
803,509,000
996,521,000
United States securities—issues, redemptions, and
exchanges b y Fiscal Agency department
3,931,535,000
3,560,499,000t
2,448,504,000t
Transfers of funds
12,519,173,000
20,378,015,000
13,194,453,000
*Includes 1 application and 6 notes covering $150,000,000 rediscounted for other Federal Reserve
banks.
**Includes industrial advances covered b y 19 applications, 20 notes, and valued at $924,400, but
excludes applications for industrial advances which were not approved.
tincludes Federal Land Bank and Federal Intermediate Credit Bank obligations handled.




21

TWENTIETH ANNUAL REPORT
Comparative Statement of Condition
(In Thousands of Dollars)

ASSETS

Dec. 31
1934

Gold certificates on hand and due from United States Treasury
Redemption fund—Federal Reserve notes
Other cash

1,025,816
1,311
33,384

874,129*
6,841
33,316

820,336*
3,392
47,090

Total reserves
Redemption fund—Federal Reserve bank notes
Bills discounted:
Secured by United States Government obligations, direct
and/or fully guaranteed
Other bills discounted

1,060,511

914,286
1,879

870,818

911
3,142

3,813
11,156

2
707
921

4,053
14,091

14,969
3,964

62,144
273,102
93,097

76,950
177,161
183,232

40,775
34,301
187,134

428,343

437,343

262,210

429,973
105
4,776
58,140
4,955
768

455,487
455
4,238
54,510
7,375
1,549

281,143
419
2,674
43,214
7,595
1,454

1,559,228

1,439,779

1,207,317

Federal Reserve notes in actual circulation..
Federal Reserve bank note circulation—net.

788,933

784,759
28,737

692,150

Deposits:
Member bank—reserve account
United States Treasurer—general account.
Foreign bank
Other deposits

633,316
32,551
2,417
2,685

494,813
76
541
18,243

409,360
1,782
2,806
2,080

670,969

513,673

416,028

58,879
12,723
21,350
707
5,325
342

55,689
12,790
40,429

40,898
16,157
39,497

2,969
733

1,750
837

1,559,228

1,439,779

1,207,317

72 6

70.4

78.0

495

5,215

Total bills discounted...
Bills bought in open market.
Industrial advances
United States Government securities:
Bonds
Treasury notes
Certificates and bills
Total United States Government securities.
Total bills and securities
Due from foreign banks
Federal Reserve notes of other banks.
Uncollected items
Bank premises
All other assets
Total assets.

Dec. 31
1933

Dec. 31
1932

LIABILITIES

Total deposits.
Deferred availability items.
Capital paid in
Surplus (sec. 7)
Surplus (sec. 13b)
Reserve for contingencies
All other liabilities
Total liabilities.
Ratio of total reserves to deposit and Federal Reserve note
liabilities combined (per cent)
Contingent liability on bills purchased for foreign correspondents
Commitments to make industrial advances.
inclusive of gold.




22

MOVEMENT

OF

RESOURCES

FEDERAL RESERVE BANK OF CHICAGO 1924 TO 1934 INCLUSIVE
MILLIONS OF DOLLARS

120O
110O
1000
900
800

100

200
100

k : " | ;:;;•;;;:•;[;;; ,yjsV^cuRm^,,::::-;::] -rr-r^, 1. r r : h r x . . „ I. .TrSrlf..;
1924

1925

1926

1927

1928

1929

1950

1931

1932

1933

1934

1933

1934

DATA AS OF THE LAST REPORTING DATE IN EACH MONTH

MOVEMENT

OF

LIABILITIES

FEDERAL RESERVE BANK DF CHICAGO 1924 TO 1934 IMCLUSIVE
MILLIONS DF DOLLARS

1200r~

CAPITAL AND SURPLUS

1924

1925

1926

1927

1928

1929

DATA AS OF THE LAST REPORTING DATE IN EACH MONTH




23

1930

1931

1932

MILLIONS OF DOLLARS
+ 1200

CURRENCY DEMAND
CHICAGO DISTRICT

1DQM|F|M|A|M|J|J|A|S|O|N|D1J1F|M|AHJ|J|A1S|O|N|D|J|FHA|W|J1J|A|5|D1N|D|J |FMA|H|J|J|A|S|O|N|D|J|FNA| MIJJJ]A|5|O[N|D J|F|M|A|KILJ|W||A|S|D|N|Q

1929

1932

1931

1933

1934

GRAIN ANC1 LIVE STOCK PRICES
TO 1934 INCLUSIVE

CENTS

PRICE PER BUSHEL

110
100
90
•N
80
10
*. *.nr.
60
50
40
30
20
10
0
DOLLARS
11
10

g
8
7 *«
6
5
4
3
2
1
0

^ CENTS
IIU

/

A s.

s

J

N

.*

It A

*
J

I K —

r

M

/ • *^

,«

,•«
* •

s
•

^.

• •

».. • ' -

PRICE

• •

PER

3R N

1OO P O U N D S

100
90
80
10
60
50
40
30
20
10
0

DOLLARS

11
10
g

•f

C)

%
*•

N

Tl E
^"
#•

%
•' %
"»,
H )G 3
C

^*

to • •

* *
• • •

• •

*'

B
1
6
5
4
3
2
1

n
1931




1932

1933
24

1934

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