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FE D E R A L R ESER VE BANK O F C H IC A G O FIR ST A N N U A L REPORT TO THE Federal R e s e r v e Bo a r d t D E C E M B E R 31. 1915 O FFIC E R S A N D D IR E C T O R S F E D E R A L RESERVE BANK O F C H IC A G O D IS T R IC T N O . 7 D IR E C T O R S C LA S S " A " Term Expires •George M* Reynolds. Chicago, 111.........* .December 31, 1918 Jas. B. Forgan......... Chicago, 111..*........December31, 1916 E. L. Johnson.......... Waterloo, la..........December 31, 1917 C LASS " B " •A, H. V ogel... . . . . . . Milwaukee, Wis.,.December 31,1918 Henry B. Joy.',* . . . . .Detroit, Mich.... ♦.December 31,1916 M. B, Hutchison___Ottumwa, la.........December 31,1917 C LA S S “ C " tE . T. M eredith......D es Moines, la...December 31,1918 C, H. Boaworth.........Chicago, 111........... December 31, 1916 W. F. McL*alleti........Columbia City, Ind., " 31,1917 <*Re-elected for three years.) (tReappointed for three years.) O F F IC E R S C. H. BOS WORTH, Chairman of the Board and Federal Reserve Agent W, F. McLALLEN, Deputy Chairman, etc., and Secretary JAS. B. McDOUGAL. Governor C. R. McKAY, Deputy Governor G. McCLOUD, Cashier S. B. CRAMER, Acting Auditor B, MEM BER ADV ISOR Y CO UN CIL JAS. B. FORGAN F E D E R A L R ESER VE BOARD W A S H IN G T O N Ex*OfRcIo Members W IL LIA M Q. McADOO Secretary of the Treasury Chairman CHARLES S. HAMLIN, 8overnor F R E D ER IC A. DELANO, VlM*6overnor PAUL M. WARBURG W. P. G. HARDING ADOLPH C. M ILLE R JOHN SKELTON W IL L IA M S Comptroller of the Currency H. PAR KER W ILLIS, 8eer*tary 8HERMAN ALLEN. Ant. Secretary Address Reply to FEDERAL RESERV E BOARD October 15, 1915. Sir: Some months ago the Federal Reserve Board voted to ash each Federal Reserve Agent to pre sent to it an annual report on the operations of his office. * * * * * * The main content of the report should be a review from your standpoint as the Chairman of the board of directors of your bank and the official representative of the Federal Reserve Board, of the bank's policies and the scope of its operations for the year, the banking and credit conditions and needs of your Federal Reserve dis trict and the extent to which these have been met by your bank, and a description in general terms of the results of the year's operations, progress made, prospects for the future, and the problems presenting themselves for solution in your bank or in your district. Attention should also be given to any difficulties encountered in the administra tion of the Federal Reserve Act or the Board*s regulations, and to any amendments either to the Federal Reserve Act or to the National Bank Act which in your judgment or in the judgment of your board of directors seem advisable. * * * Respectfully, IL PARKER W IL L IS , Secretary . Mr. C. H. Bosworth, Chairman, Board of Directors, Federal Reserve Bank of Chicago. F IR S T A N N U A L REPORT TO THE FEDER AL RESERVE T BOARD HE Federal Reserve Act was approved by the President, December 23, 1913. The Organization Committee proceeded prompt ly to divide the countiy into districts and to con duct the election of Class "A" and Class “B” directors* In its circular of May 11, 1914, the hope was expressed that the banks “may be or ganized in ample time to elect officers and secure banking quarters and be in actual operation by August 1, 1914.” It was very unfortunate that this hope was not realized, so that the new system could have been ready to take care of the emergency resulting from the declaration of war in Europe. There was un avoidable delay in the appointment of the Fed eral Reserve Board and, again, in the appointment by the Board of the Class “C” directors of the banks. The announcement of Class “C” directors of the Federal Reserve Bank of Chicago was not made until October 7 and they were immediately summoned to Washington. The first meeting of directors was held at the rooms of the Chicago Clearing House Association on October 13,1914. A meeting at Washington of all the directors of all of the banks with the Federal Reserve Board was called for October 20, and at that meeting it was agreed that all the banks could open for busi ness on November 16, although the time for or ganization was necessarily short. A call for the payment on November 2 of the first installment of subscriptions to the capital stock of the Federal Reserve Banks was issued by the Federal Reserve Board, and on October 25 the Secretary of the Treasury stated that he had determined to announce on November 16,1914, the establishment of the Federal Reserve Banks in all the Federal Reserve Districts, and on October 28 5 the Federal Reserve Board advised the member banks to arrange to transfer the required reserves to the new banks on that date. All the national banks in this district except two became members. Mr. F. A. Delano, Vice-Governor of the Federal Reserve Board, was present at the first meeting of the Board of Directors of the Federal Reserve Bank of Chicago. At this meeting the directors classified themselves into one, two and three year terms and took up the selection of quarters and the election of officers. The full Board—with one exception—attended the joint conference at Washington on October 20; on their return, the second meeting was held on October 23, at which meeting a seal was se lected, by-laws adopted, an Executive Committee named, the Governor appointed, and the Executive Committee ordered to canvass all available sites for quarters for the bank. Up to and including November 16, 1914, four directors* meetings and eight executive commit tee meetings were held, all officers appointed, quarters selected and on the last-named date the Federal Reserve Bank of Chicago opened, for busi ness at Clark and Monroe streets. The following telegrams were exchanged be tween the Secretary of the Treasury and the bank : “Washington, D. C., Nov, 16, 1914. “C. H. Bosworth, “Federal Reserve Agent, “Chicago, 111. “Please accept my cordial congratulations upon the opening of the Federal Reserve Bank of your district and my sincere commendation upon the ef fective work you have done in preparing the hank for business in the short time allowed for the open ing. I am sure that the Federal Reserve Banks will serve a great and beneficent purpose in the future of our country and I am sure that this department and the Federal Reserve Board may count upon your loyal co-operation in the important work and duties which have been confided to you. My hearty good wishes for your success. “ (S ig n e d ) W . G . M cA doo.” “Chicago, Nov. 16, 1914. “Hon. W.^ G. McAdoo, “Chairman Federal Reserve Board, “Washington, D. C. “Allow us to extend our congratulations to you and your associates on the Federal Reserve Board 6 upon the successful opening of the district banks. We are pleased to announce that the Federal Re serve Bank of Chicago opened on time at ten o'clock this morning fully prepared to perform the functions required of it. On hehalf of ourselves and all the directors of this institution we have to say that you may count upon our loyal co-operation in this im portant work. 11(Signed) J . B. M cD ougal, Governor. “ C. H . B oswobth , C h airm an .” ACTIVITIES OF THE BOARD OF DIREOTOBS When the bank was organizing, directors* meet ings were frequent and held upon call of the chairman. During 1915, however, the regular monthly meeting has been found satisfactory, as a very full report of executive committee proceed ings is sent out to all directors every week. Since organization, there haye been seventeen directors* meetings and eighty executive committee meetings. Upon different occasions members of the Fed eral Reserve Board have visited the bank, and a number of them have attended directors* meet ings. Four directors, residents of Chicago, with the Governor as Chairman4, constitute the Executive Committee. At the beginning this committee met from three to four times a week. After January 8, 1915, two, and since June 25, 1915, one meet ing a week has been sufficient. Occasionally one or more of the out-of-town directors have met with the committee. The committee reviews the acts of the officers in the matter of rediscounts for member banks and the purchase of acceptances and other invest ments and passes upon all current questions of policy, methods and procedure, subject to ratifica tion by the Board of Directors. The directors approve or disapprove of the acts of the Executive Committee, receive reports from the officers, de termine interest and discount rates and, in gen eral, perform the functions ordinarily exercised by boards of directors. BUSINESS AND BANKING CONDITIONS DURING THIS PERIOD The Federal Reserve Bank of Chicago was opened just as business was beginning to recover from the shock occasioned by the declaration of 7 war in Europe. After November 16, 1914, the steadying and quieting influence of the Federal Eeserve System began to be felt and a quick re duction began in the high rates of interest then prevailing. Early in August, Aldrich-Vreeland currency had been applied for by the currency associations lo cated in this district to the amount of $38,198,490. About the same time Detroit, Des Moines and Chicago banks had issued clearing house certifi cates. About the'time this bank was organized the banks began to redeem their Aldrich-Vreeland currency and to retire their clearing house cer tificates. By January 1,1915, a better tone was apparent. At this time member banks were discounting with the Reserve Bank to the extent of $3,000,000, al most all of which was from large city banks. This amount gradually dwindled to $760,000 on the first of May, practically all being from smaller country banks. There was a .plethora of money in the banks, but business was still timid and sensitive to war scares, and weather conditions all over the United States were unusually unfavor able to growing crops. Between May and September crop prospects im proved until there was a practical certainty of a record production; so-called war orders began to make themselves felt; railroads began necessary betterment work and the buying of additional equipment, and lumber and the building trades began to take on life, except in Chicago, where the strikes caused a complete tie-up in building operations until July. During this third quarter of the year bank deposits continued abnormally high and interest rates unusually low. The marketing of crops was delayed until well into the last quarter of the year. A considerable per cent of the com crop was damaged by early frosts and is now being fed to stock, resulting in increased loans to farmers by country banks and in the member banks rediscounting with the Fed eral Reserve Bank to the extent, at this date, of a little over $3,000,000. Illustrating the solid character of commercial and manufacturing activities, advices from the steel and iron trade show increasing demands, and 8 the output is almost all for domestic requirements. Railroads are showing heavy increases in earnings. General business conditions and seasonable weather are favorable to a much greater volume of mer chandising, both wholesale and retail, than a year ago. Deposits in Chicago banks increased over $40,000,000 between the Comptroller’s calls of September 2 and November 10, 1915. Confidence in the immediate future is evidenced by the large expenditures being undertaken for the purpose of enlarging outputs and the steady buy ing of retailers to replace or enlarge depleted stocks. Money rates are low and bank deposits are still increasing. CHARACTER OF DISCOUNTING The first discounting with the Federal Reserve Bank of Chicago by member banks was done by several of the large Chicago banks and was largely complimentary and for the purpose of blazing the way and setting an example. Later on, some discounting was for the purpose of enabling the members borrowing to retire Aldrich-Vreeland currency.* From the latter part of December, 1914, to March, 1915, much of the dis counting was from Iowa, Illinois and Indiana banks and was due to local emergencies caused by the hoof and mouth disease. Latterly, in 1915, some discounting has been occasioned by the poor and unmarketable quality of the corn crop in cer tain sections of the district. In addition to this there has been more or less continuous discount ing in a small way, due to the individual require ments of a number of the country banks. MEETINGS AND ORGANIZATION OF FEDERAL RESERVE AGENTS A conference of all the twelve Federal Reserve Agents was called by the Board and was held in the Treasury Building, Washington, February 1 to 6, 1915, at which many subjects were discussed, A second conference was called and held at Washington, November 4 to 6,1915. At both con ferences jQint sessions with the Federal Reserve Board were held. At the November conference a permanent organ9 ization was effected and an executive committee appointed. The Executive Committee met in joint confer ence with the Executive Committee of the Gov ernors at Washington, November 17, 1915. FEDERAL RESERVE NOTE-ISSUING CAPACITY AND POLICY OF THE BANK Taking the statement of the bank of December 1, 191£j, and after setting aside the required 35 per cent reserve against deposits, the bank had left $27,697,106 gold reserve applicable to a Fed eral Reserve note issue. The gold reserve re quired by the Act against a note issue is 40 per cent. This $27,697,106 would, therefore, sustain a Federal Reserve note issue of $69,242,765. The Federal Reserve 3oard is authorized to sus pend this reserve requirement, and if the occasion demanded it, undoubtedly would do so, and the note-issuing capacity of the bank could readily be extended to in excess of $100,000,000. It is the policy of the bank to issue Federal Re serve notes freely where conditions and circum* stances make it necessary. Up to the present time it has had no occasion to issue Federal Re serve notes except for the purpose of familiariz ing member banks and the public with the new form of currency. While $4,380,000 in notes has been* issued the issue was quickly covered with gold of equal amount deposited with the Federal Reserve Agent, thus producing no expansion. If an amendment to the Federal Reserve Act can be secured, under which the Federal Reserve Banks will be permitted to issue notes directly against deposits of gold and under which the gov ernment will assume the responsibility of the ex pense involved, it will then be the policy to issue notes freely with a view to accumulating gold,, which will stand available in case of need. U. S. BOND-SECURED CURRENCY Under the Act the Federal Reserve Banks are authorized to deposit U. S. government bonds having the circulating privilege, and to receive from the Comptroller of the Currency circulating notes, which shall be issued and redeemed under the same terms and conditions as national b#nk 10 notes, except that they are not limited to the amount of the capital stock of the bank issuing them. This bank has had printed $2,560,000. of such bond-secured notes, ready for issue. None has been issued up to date. This currency is available, however, in case of emergency. It would also be available in case of rediscounting with us by another Federal Reserve Bank, where currency shipment to the other bank was necessaiy, as Federal Reserve notes could not be used for this purpose, the law not allowing one Federal Reserve Bank to pay out the Federal Re serve notes issued by another bank, except under a heavy penalty. FEDERAL RESERVE BANK AS FISCAL AGENT OF THE U. S. GOVERNMENT On November 23, 1915, the Secretary of the Treasury announced that he had determined to appoint the Federal Reserve Banks to be deposit aries and fiscal agents of the United States on January 1, 1916. * The deposits of all officers of the government in the City of Chicago, now made with the national banks of that city at present designated as United States depositaries, will be made with the Federal Reserve Bank, with the exception of post office funds and the deposits to the credit of a United States Court and its officers, and the Federal Re serve Bank will be required to cash all government warrants and checks drawn on the Treasurer of the United States which may be presented to it In the same manner and to the same extent as the national bank depositaries are now required to honor such checks. The amount held by the national bank deposit aries in Chicago to the credit of the Treasurer of the United States at the close of business De cember 31, 1915, will be transferred to the Federal Reserve Bank; that amount is approximately $1,000,000 at present. ELECTION OF DIRECTORS The terms of one Class “A” and one Class “B” director expired on December 31, 1915. An elec tion to choose their successors was held in Novem 11 ber, resulting in the re-election of both of the old directors. TRUSTEE POWERS TO NATIONAL BANKS Up to December 1, 1915, special permits have been granted by the Federal Reserve Board to national banks in the Seventh District to act as trustee, executor, etc., when not in contravention of state laws, as follows: To 20 national banks in Indiana. To 8 national banks in Illinois. To 11 national banks in Iowa. To 8 national banks in Michigan. To 4 national banks in Wisconsin. MEMBERSHIP OF STATE BANKS Recognizing that a unified banking system, em bracing in its membership the well-managed banks of the country, small and large, state and na tional, is the aim of the Federal Reserve Act, the Federal Reserve Board issued on June 7, 1915, its Circular No. 14, providing for membership of state banks in the system. The regulations were made as liberal as pos sible and even provided a method by which state banks that joined might withdraw, a privilege not accorded by the Act to the national banks. Two state banks—the Bank of Wisconsin, Madi son, Wis., and the Central Trust Company of Illi nois, Chicago, 111., joined the system at its incep tion. Since then the following state banks have joined: Commercial and Savings Bank, Albion, Mich. Elmhurst State Bank, Elmhurst, 111. Commercial Trust and Savings Bank, Joliet, 111. Badger State Bank, Milwaukee, Wis. Fruit Growers’ State Bank, Saugatuck, Mich. THE INTERNAL ORGANIZATION AND PERSONNEL OF THE BANK The three classes of directors, being men of wide experience, from the small as well as the large cities, compose an able and efficient board, fairly representing all interests, including bank ing, commercial, industrial and agricultural. The executive officers of the bank were taken from the banking activities of the community, 12 where each has had years of practical experience. The heads of the various departments and other employes came from active positions in various banks, where they received the practical training essential to the best service. The various depart ments are now fully organized and equipped and in readiness for increasing activities, whatever they may be. RATES OP DISCOUNT Discount rates naturally are influenced by pre vailing conditions and in naming rates it is the policy of the bank to carefully consider the gen eral business situation. Should the demands be sufficient to absorb a considerable amount of the bank’s resources it is the policy of the Board of Directors to immediately reconsider the established rates with a view to advancing them if advisable. On the other hand, should conditions be such as to indicate that the established rates are excessive due consideration will be given to a readjustment downward. DISCOUNTING It is the policy of the bank to lend liberal as sistance to deserving banks for seasonal or emer gency purposes, and on the other hand to discour age any tendency toward over-expansion. Prom the outset, the officers have undertaken by correspondence and by personal interview to familiarize member banks with the procedure in discounting, which has been made as simple and expeditious as possible, all unnecessary formality being eliminated. OPEN-MABKET OPERATIONS TO DECEMBER 1, 1915 Open-market transactions to date have been con fined to the purchase of government bonds, shorttime municipal warrants and bankers’ acceptances. The total of bankers* acceptances purchased is $4,773,465.72, represented by bills drawn against exports or imports and accepted by banking institu tions of known responsibility. The total of municipal obligations purchased is $7,108,748.76, represented by warrants and bonds issued by municipalities in various states, of maturities ranging from 16 days to 6 months. 13 The total of XL S. bonds purchased is $4,090,000, all carrying the circulation privilege as follows: $2,525,000 TL S. 2 per cent bonds and $1,565,000 3 per cent, the threes being due and payable in 1918. THE CHECK-COLLECTION SYSTEM On November 16, 1914, the date this bank opened for business, it installed a collection sys tem by taking from member banks for immediate credit checks drawn by member banks on mem* ber banks located in Chicago and the seven re serve cities of this district. On December 3, 1914, the collection service was enlarged to include all items drawn on member banks located in Chicago and the seven reserve cities in this district. On December 16, 1914, the bank began taking checks drawn upon all of ' the Federal Reserve Banks for immediate credit. This was a tem porary arrangement and subject to revision at such time as a permanent plan for clearing between Federal Reserve Banks could be agreed upon. On April 7, 1915, the member banks were advised that a voluntary intra-district collection system would be established and that items would be received for immediate credit at par from such banks as joined the collection system, provided they were drawn upon banks which were members of the collection system. On June 10, 1915, the voluntary intra-district collection system was put into effect. On June 15, 1915, the bank began receiving items on all the Chicago Clearing House banks from member banks, whether they had joined the collection system or not, and in addition checks and drafts on Federal Reserve Banks located in Boston, New York, Philadelphia and St. Louis for immediate credit at par except when the amounts exceeded $10,000, in which case it re served the right at its option to receive the items at the market rate for exchange on the cities men tioned. Checks on other Federal Reserve Banks which were previously received for immediate credit at par were then received on a deferred credit basis of from one to four days, in accord ance with the schedule of deferred credits ap- 14 proved by the Federal Reserve Board. Besides receiving the above items from member banks, whether they had joined the collection system or not, it began, on June 14, 1915, receiving from member banks that are members of the collection system checks and drafts on member banks lo cated in Boston, New York, Philadelphia and St. Louis for immediate credit at par, reserving the right at its option to receive these items at the market rate for exchange on these cities when the amounts exceeded $10,000. No further changes in the collection system have been made up to date. The development of the check-collecting function has proved the most dif ficult problem confronting the management of the bank. OPERATION OF CHEC3K-C0LLECTI0N SYSTEM From November 16, 1914, to December 3, 1914, drafts drawn by member banks on Reserve and Central Reserve city banks in District No. 7 were cleared as shown below: AVERAGE PER DAY Number of Items City Country Total 7 59 96 City Amount Country Total $ 125,000 $63,000 5188,000 From December 3 to December 16 all checks drawn on member banks in Reserve and Central Reserve Cities of District No. 7 were cleared as shown below: AVERAGE PER DAY City 793 Number of Items Country Total 2,262 3,055 City Amount Country Total $820,000 1650,000 *1,470,000 From December 16, 1914, to June 10, 1915, all checks drawn on member banks in Reserve and Central Reserve Cities of District No. 7 and checks drawn on all other Federal Reserve Banks were cleared as follows: 15 AVERAGE PER DAT Number of Items December 1640.... January.............. . February.............. March.................. April..................... May....... June 1-10............... Other Federal Reserve Banks Total 10 25 33 39 48 43 49 3,363 4,192 4,017 4,004 4,014 3,971 4,122 Country Other Federal Reserve Banks Total $ 700,000 1.315.000 1.144.000 1.430.000 1.064.000 962,000 1.395.000 $ 525,000 730.000 734.000 649.000 666.000 735,000 1.434,000 $2,217,000 3,049,000 3,121,000 3,754,000 3,166,000 3,074,000 4.283,000 Country City 893 * 2,463 911 3,256 3,269 715 3,202 763 3,262 704 730 3,198 3,305 768 Aimount City December 16-30.... $ 992.000 January................ 1.004.000 February........... . 1.243.000 March.................. 1.675.000 April.. . . . . . . . . . . . . 1.436.000 May..................... 1.377.000 June 1-10............... 1.454.000 From June 10 to December 31 all checks drawn on member banks of District No. 7 which have joined the collection system, checks on members of Chicago Clearing House Association, checks on all other Federal Reserve Banks and checks on member banks in Boston, New York, Philadelphia and St Louis were cleared as follows: AVERAGE PER DAT Number of Items 'June 10-30............. July...................... August.................. September............ October................ November............ December............ 944 1,669 1,699 1,981 2,212 2,248 2,472 Other Federal Reserve Banks Total 50 61 64 82 94 95 108 5,947 7,445 7,458 8,540 10,058 10,304 10,964 Country Other Federal Reserve Banks Total $ 987,000 1.125.000 1.155.000 1.353.000 1.752.000 1.952.000 1.983.000 $ 958,000 721.000 515.000 1.225.000 1.212.000 1.509.000 2.037.000 $3,561,000 3.689.000 3.463.000 4.669.000 5.928.000 6.923.000 7.745.000 Country City 4,953 5,715 5,695 6,477 7,752 7,916 8,384 Amount City June 10-30............. $1,616,000 July.................... 1.843.000 August.................. 1.793.000 September............ 2.121.000 October................ 2.964.000 November........... 3.462.000 December............ 3.725.000 ITEMS AND AMOUNT HANDLED From November 16,1914, to December 31, 1915, the check-collection department has handled—with out charge to the member banks—2,122,405 items, the sum total amount of which is $1,303,629,563.43. 16 EXCHANGE AND COLLECTION CHARGES ON OHECES IN THIS DISTRICT Exchange charges in this district are not exces sive, being rarely over $1 per $1,000. In Illinois about 50 per cent of the member banks remit at par. The rates of the banks which charge nm from 25 cents to $1 per $1,000. In Indiana possibly 15 per cent of the banks re mit to their Chicago correspondents at par. The rates of the banks which charge rnn from about 50 cents to $1 per $1,000, and in some instances as high as $1.25 per $1,000. In Iowa, about 25 per cent remit at par, the remainder charging about $1 per $1,000 In Michigan and Wisconsin there are very few par points, as nearly all the banks charge $1 per $1,000. Outside of the banks which have joined the col lection system, very few reductions in exchange charges have been made. There are a few banks, however, that are agreeing to remit at the rate of 10 cents per letter regardless of the amount, but there has been no reduction to any extent of ex change charges by non-jnembers of the collection system. IMPORTANCE OF THE BANK TO THE COMMUNITY Notwithstanding the almost negligible demands on most of them for either credit or currency, the Federal Reserve Banks have performed an impor tant function in the creating of confidence and in stabilizing the financial structure of the country. During the several very critical periods this year the system fully demonstrated its worth, inspiring confidence and banishing fear, and forestalling panic from the mere fact of its existence. ATTITUDE TOWARD MEMBER BANKS The Federal Reserve Bank of Chicago belongs to its members. They have furnished the entire capitalization and are the sole depositors, they have elected six of the nine directors and the di rectors in turn have elected all the officers of the bank except the chairman of the Board. Further more, the Federal Reserve Board has stated its policy to be that it does not desire to interfere with the management of the banks except to see 17 that the law is observed. Therefore, the attitude toward member banks is one of cordial co-operation for the purpose of securing for them and through them for the business community and the public every advantage intended and possible under the Act. CO-OPERATION BETWEEN FEDERAL RESERVE BANKS Co-operation between the Federal Reserve Banks has Ibeen evidenced by the organization of a con ference of Governors for the purpose of considering problems and questions that have arisen, and ex changing views in order that all may have the benefit of the views of each. The full conference has held five meetings, each meeting lasting sev eral days, in addition to which the Executive Com mittee of the Conference of Governors has trans acted such business as has been delegated to it by the full conference. Also a number of joint meet ings have been held between the Federal Reserve Board and the full Conference of Governors, and between the Board and the Governors* Executive Committee. Respectfully submitted, C. H. B osw o r th , Chairman of the Board. Chicago, 111., December 31, 1915. 18 FEDERAL RESERVE NOTES Figures at Close of Business December 31, 1015 Total Federal Reserve Notes printed for this bank................ $60,000,000 Beld in Washington ready for shipment.............. 950,620,000 Held by Federal Reserve Agent (New Notes)__ 4,660,000 Issued to bank..................................................... 4,720,000 60,000,000 Outstanding in circulation, secured by deposit of gold with Federal Reserve Agent................................................... Returned by bank for cancellation and destruction............... Notes of other Federal Reserve Banks redeemed and returned to issuing bank............................................................... Our notes returned to us by other Federal Reserve Banks.... 4,380,000 340,000 834,875 148,460 RECORD OF DISCOUNT RATES Effective 1914 Nov. 14................ Dec. 1................ Dec. 16................ 1915 Jan, 1................ Jan. 23................ Dec. 1................ Dec. 11................ Maturities up to 30 Days Maturities Maturities Maturities up to up to over 60 DAys 90 Days 90 Days 6% 54% 5% 6% 6% 6% 6% 51% 5%. 41% 51% 41% % ) 4% (No change Special rat e of 31% on ten-day pap er. 6% 6% 6% 6% 5% CAPITAL STOCK SUBSCRIPTIONS AS OF DECEMBER 31, 1915 Central Reserve City Banks............................................... $ 4,488,000.00 Reserve City Banks............................................................ 2,195,700.00 Country Banks.................................................................... 6,609,700.00 113,293,400.00 Table showing reserve required to be deposited with Federal Reserve Bank of Chicago December 1, 1915, figured from the Comptroller’s call of November 10* 1915, and compared with actual balances as shown by books on December 1, 1915. Reserves Reserves Required to be Carried with Carried with Federal Federal Reserve Bank. Reserve Bank. Excess Reserves. Central Reserve City Banka.................... $34,174,300.00 Reserve City Banks.. 5,568,700.00 Country Banks.......... 12,400,200.00 $31,777,500.00 6,031,900.00 11,956,500.00 $2,396,800.00 •463,200.00 443,700.00 $52,143,200.00 $49,765,900.00 $2,377,300.00 •Short of Required Reserves. Id If I* *3 h r ft* oS It I 13 3| 3o H 8888888 fr« §§§§§§§ **» ?§ cf CS*Go»«"00C*S ao 3q ONNtOONCO 6 * BS'SRS'” * — <o-f- - SSSSSS8 CO Os £33 asgsg s SSSS8SS ssssg s h ol 1® Jp.s p * ® S^igi 3111=fr? 20 ■ tJ *3 Ia 0 5 %1 W5 11 £ <5 St.. •£« &+f*£ H efc $ 144,502,000.00 76,940,000,00 730,549,000 00 221,660,000.00 1,725,520,000.00 8,754,000.00 270,479,000.00 COMPARATIVE STATEMENT OF INVESTMENTS— SEMI-MONTHLY ta P 21 EARNINGS OF THE FEDERAL RESERVE BANK OF CHICAGO FOR THE PERIOD FROM NOVEMBER 10, 1914, TO DECEMBER 31, 1915. Earnings: Discount...........r........................................................ *117,411.56 Interest on Bonds and Investments............................. 136,568.11 Sundry Profits............................................................ 14,905.32 $268,884.99 ChargedtoEarnings: Current Expense..........................................................$200,306.98 Organization Expense.................................................. 39,947.56 Federal Reserve Notes Issued.................................... 5,328.88 Equipment.................................................................. 3,210.18 $248,793.60 Balance carried to Profit and Loss Account.............................$ 20,091.39 EXPENDITURES OF THE FEDERAL RESERVE BANK OF CHICAGO FOR THE PERIOD FROM NOVEMBER 16, 1914, TO DECEMBER 31, 1915. /. CurrentExpenses: Assessment to defray Expenses of Federal Reserve Board, July 1st to December 31st, 1915................ $ 13,226.40 All other Expenses....................................................... 187,080.58 Total........................................................$200,306.98 2. Organization Expenses: Expenses prior to November 16th, 1914.......................$ 16,640.51 Assessment to defray Expense of Federal Reserve Board prior to June 30th, 1915............................... 23,307.05 Total........................................................$ 39,947.56 Coit ofFederalReserveNotes: ...................................................................................$ 65,708.94 Equipment: Furniture and Fixtures................................................ I Vaults......................................................................... Machines..................................................................... Other.......................................................................... 9,351.50 6,960.00 7,363.53 2,535.15 Total........................................................$ 26,210.18 Total Expenditures........................................ $332,173.66 22 DISCOUNT DEPARTMENT OPERATIONS November 16, 1914, to December 31, 1914. 116 applications for discount approved at 4% to 6% from 78 member banks as follows: COUNTRY RESERVE CITIES *7 banks 1 bank 1 bank 2 banks $4,207,350.00 108,782.86 30,500.00 125,000.00 15 banks 17 tanks 29 banka 2 b^nks 4 banks $142,126.42 224,891.09 358,169.32 150,295.50 62,700.00 11 banks •Central Reserve City. $4,471,632.86 67 banks $938,182.33 Illinois.. .. .. .. Indiana........ Iowa ........ Michigan........ Wisconsin....... DISCOUNT DEPARTMENT OPERATIONS January let to December 31st, 1915. 1,049 applications for rediscount approved at 4% to 6%from 139 member banks as follows: RESERVE CITIES Illinois........... Indiana. Iowa.............. Michigan........ Wisconsin.. COUNTRY •3 banks $1,442,618.08 2 banka 155,000.00 33 banks 21 banks 76 banks 5 banks 3 banks $1,631,207.28 1,328,478.32 4,260,295.65 208,570.82 209,701.96 5 banks $1,600,618.68 139 banks $7,638,254.03 23
@FedFRASER