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ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO FOR THE YEAR ENDED DECEMBER 31,1915 WASHINGTON GOVERNMENT PRINTING OFFICE 1916 ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO FOR THE YEAR ENDED DECEMBER 31,1915 WASHINGTON GOVERNMENT PRINTING OFFICE 1916 TABLE OF CONTENTS. Page. List of tables and exhibits .. ................................................................................... Establishment of bank............................................................................................... Staff and clerical force................................................................................................ Internal organization.................................................................................................. Meetings of directors.................................................................................................. Operations of bank..................................................................................................... Rediscount policy...................................................................................................... Open-market transactions.......................................................................................... Earnings....................................................................................................................... Purchase of United States bonds............................................................................. Federal Reserve notes............................................................................................... Check-collection system............................................................................................ State banks and trust companies............................................................................... Fiduciary powers, granting of................................................................................... Business and agricultural conditions........................................................................ 5 6 6 6 7 7 8 9 9 10 11 11 12 12 13 TABLES AND EXHIBITS. Table 1—Statement of condition.............................................................................. 14 2a—Classification of rediscounts, by months and States.............................. 15 2b—Classification of rediscounts, by States and industries......................... 16 3—Acceptances purchased............................................................................. 16 4—Short-term.warrants, notes, and bonds purchased.................................. 17 5—United.States bonds purchased................................................................. 17 6—Gold.settlement fund............................. ................................................18,19 7—Federal Reserve notes............................................................................... 20 8—Earnings of bank........................................................................................ 20 8a—Expenditures of bank............................................................................... 21 9—Capital_and deposits paid and estimated additional to be received___ 22 10—Intradistrict collections............................................................................ 23 Exhibit A—Map showing outline and area of district............................................. 24 B—Rate of development in district in population and wealth, by States. 25 C—Value of chief products of district........................................................ 26 D—Bank clearings in principal cities........................................................ 27 E—Banking power of district..................................................................... 28 F—Seasonal demand for loans and prevailing interest rates................... 29 G—Effect of income of member banks by establishing Federal Reserve System................................................................................................ 29 H—By-laws of bank..................................................................................... 30 I—Discount rates........................................................................................ 32 J—Fiduciary powers granted..................................................................... 33 K—Banks granted permission to accept bills or drafts of exchange up to 100 per cent of capital and surplus.................................................. 33 L—Exchange charges in district................................................................. 34 M—Principal items in reports of condition to Comptroller of Currency, and abstract of exchange, losses, and earning accounts for three years................................................................................................35,36 ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO. Joh n P e r r in , Chairman and Federal Reserve Agent. In compliance with the request of the Federal Reserve Board, I have the honor to report concerning the establishment, in the twelfth Federal reserve district, of the Federal Reserve Bank of San Francisco and its financial operations during the first year, with some statement regarding various features of its development and sug gestions of certain changes of laws which would enable the Federal Reserve Bank to serve more efficiently the productive activities of its district. Appended are Tables 1 to 10, inclusive, giving details of the bank’s condition and summaries of its principal financial operations; and Exhibits A to M, inclusive, giving certain collateral information: T ables. 1. Statement of condition as of November 30,1915. 2. Rediscounts classified: (a) By month and States. (b) By States and industries. 3. Bankers’ acceptances purchased. 4. Municipal warrants purchased. 5. United States bonds purchased. 6. Settlements through gold settlement fund. 7. Federal Reserve notes issued and redeemed. 8. Statement of earnings and expenses. 9. Payments on capital of Federal Reserve Bank, and amount of member banks’ deposits with it November 30, 1915, with estimate of additional deposits to be made. 10. Checks collected. E x h ib it s . A. Geographical outline and area of the district B. Rate of development of district in population and wealth, by States. C. List of principal products and industries of district. D. Bank clearings in principal cities of district. E. Banking power of district. F. Seasonal demands and approximate prevailing rates of interest on loans in the several sections of the district. G. Calculation showing present earning power of member banks compared with that prior to the enactment of the Federal Reserve Act. H. Copy of by-laws of Federal Reserve Bank. I. Record of rediscount rates established by Federal Reserve Bank. J. List of banks granted special permits to act as trustee, executor, etc. . K. List of banks granted permission to accept drafts and bills of exchange up to 100 per cent of their capital and surplus. L. Rates of exchange charged on checks in twelfth Federal reserve district. M;-Principal items in member .banks1report of condition of November 10, 1915, and abstract of exchange, losses, and earnings accounts for three years (classifica tion of banks by total resources). 5 6 REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO. E s TABLISHM ENT. The first meeting oi‘ the board of directors of the Federal Reserve Bank of San Francisco was held on October 12,1914, continuing, with frequent sessions, during the two days following. On this occasion Mr. Archibald C. Kains was chosen governor. On October 14 the entire board of 9 directors and the governor proceeded to Wash ington and participated in a two days’ conference between representatives of the 12 Federal Reserve Banks and the Federal Reserve Board, called for the purpose of determining arrangaments preliminary to the inauguration of the Federal reserve system. Reassembling in San Francisco November 4, without provision then for banking room, clerical force, or stationery, the necessity was faced of becoming a going concern in 12 days, inasmuch as the Secretary of the Treasury had signified his intention of declaring the Federal Reserve System established on November 16, in pursuance of authority vested in him by the Federal Reserve Act. An apparent physical impossi bility proved not to be such, and November 16 found this bank, with a capable staff, installed in the temporary quarters still occupied. Because of consequences growing out of the European war, the financial situation at the time was much strained, as shown by the fact that under the Aldrich-Vreeland Act, fortunately extended by the provisions of the Federal Reserve Act, additional currency had already been issued upon applications of banks in this district to the extent of $15,862,650. Uncertainty and apprehension were general. The salutary influence of making the provisions of the Federal Reserve Act effective thoroughly justified the wisdom of immediate opening. Courage quickly reappeared, legitimate credit and currency requirements were met by member banks, further issues of Aldrich-Vreeland currency were promptly discontinued, and rapid retirement soon began of those outstanding. Confidence in the stability of the banking situation which then began to develop has since grown uninterruptedly, unshaken by the many alarming incidents and rumors which hitherto would have caused grave unsettlement. S t a f f a n d C l e r ic a l F o r c e . The total force numbers 21, including officers, tellers, bookkeepers, stenographers, messengers, policeman, and janitor. The official staff of the operating department consists of Archibald C. Kains, governor; Russell Lowry, deputy governor; George 0. Bordwell, cashier; Clifford J. Shepherd, assistant cashier; Ira Clerk, auditor. The deputy governor, however, has tendered his resignation, effective December 31, in order to accept the presidency of the First National Bank of Oakland, Cal. The chairman of the board and Federal Reserve Agent, John Perrin, has in his department one assistant, Clifford J. Shepherd (also assistant cashier), and one stenog rapher. The deputy chairman and deputy Federal Reserve Agent, Claud Gatch, who is also chief national-bank examiner, is not regularly engaged in the work of the bank, but performs certain duties when the chairman is absent. The executive committee consists of the governor, as chairman ex-officio; C. K. McIntosh (class A), James K. Lynch (class A), Elmer H. Cox (class B), and the chairman of the board ex-officio. I n t e r n a l O r g a n iz a t i o n . In operation the cleavage between the governor’s department and that of the chair man of the board has been minimized. Statutory discretion is lodged only in the governor and chairman (or their deputies). Beyond them, there seems no fundamental reason for any but a homogeneous force available for the duties of either department. Following this view the assistant of the chairman of the board has been made assistant cashier of the bank, and on occasion has been acting cashier. The relations between REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO. 7 the governor and the chairman have evolved into substantially those of a partnership, each being fully informed of that which transpires in the province of the other. Poli cies are discussed and agreed upon for reference to the board of directors. Discussion and interchange of opinion benefit the presentation of matters to the Federal Reserve Board. For prompt disposition of rediscounts the practical method has developed of credit ing the proceeds immediately upon the signed approval of the governor and the chair man of the board, other members of the executive committee each investigating at his individual convenience and affixing to the application his signature of approval. The summary of rediscounts for each bank is then presented to the full board in the form of a report signed by the members of the executive committee. Such a method gives a promptness of service equal to that of a member bank under the management of a single efficient chief executive. Subsequent approval by other members of the executive committee is not mere ratification. Their expression of views and criticisms constantly guide the governor and the chairman of the board in determining a course in conformity with the views of the entire committee. It is not believed that any institution can operate efficiently where executive-committee action must precede every transaction! The executive committee, in addition to participating with the officers in approving rediscounts and considering matters specifically referred, is avail able for speedy consultation upon the governor's telephone call. In a stress or crisis this will serve a most important purpose. D ir e c t o r s . Meetings of directors not less often than twice each month seem very desirable because of the value of interchange of views, not only with regard to rediscount rates and all general policies, but also with regard to business conditions. Such frequent meetings are, of course, feasible only when a board of directors is made up of those living near, and this was made possible when, by concert of action of many member banks located at distant points, directors of classes A and B were chosen from among bankers and business men living in or near San Francisco. All directors presumably recognize their obligation to serve well all banking and business interests of the entire district, but it Beems logical that each director should give somewhat special consideration to those interests which he.has been especially chosen to represent. For instance, a class B director, chosen to represent business * interests, by banks of group 3 (now comprising those having capital of $53,000 and less), would thus give special attention to the credit needs of the customers of group 3 banks throughout the district and to the ways in which the Federal Reserve Bank could influence the betterment of banking service available to them, etc. O p e r a t io n s . The period since the establishment of the Federal Reserve System has been one of progressive ease in matters of credit. The check to business and liquidation resulting from the breaking out of the European war would of itself have resulted in accumu lation of idle funds. In addition to this the reduction in reserve requirements under the provisions of the Federal Reserve Act has given to member banks the privilege of largely increasing their loans. Excess reserves held by member banks of this district were $2,420,638 on October 31, 1914, and $75,211,573 on September 2, 1915. The excess is chiefly due to reduction in reserve requirements, as shown by the fact that the totals of reserves held on the respective dates were $107,226,892 and $139,749,562. Cash and exchange held on the same dates were $186,191,580 and $224,887,649, respectively. In addition to both these factors have been the un paralleled imports of gold. All have contributed to an accumulation of loanable 8 REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO. funds beyond precedent. Under these circumstances there has been a diminishing need for rediscounts. From the standpoint of rapidity of development of the Federal Reserve Bank this is regrettable. Member banks need information concerning the Federal Reserve Bank’s methods and requirements, best gained by actual rediscount transactions, in order that they may develop as large a percentage as possible of their paper in form and character acceptable for rediscount. Such paper is a potential reserve and in amount must more than offset the reduction of reserve requirements if the banking situation is to be stronger than hitherto. This development is a process of education which must include both banks and customers and necessarily will require time. The earlier entered upon the sooner will there be cumulative strength in the general situation. Conversely, it is only by experience that the Federal Reserve Bank can be prepared for the time of heavy demands. About 31 per cent of the member banks have had rediscount transactions with the Federal Reserve Bank, many simply to gain information, some because needing funds. In a considerable number of cases important service has undoubtedly been rendered. So far as has been learned, member banks have found their dealings satisfactory. There has been effort to give service as prompt and untechnical as that of the most efficient member bank. Table 2 (a) gives information as to rediscounts made, arranged by months and States; Table 2 (b) arranged by industries and States. R e d is c o u n t P o l ic y . The initial rediscount rates established by this bank with the approval of the Federal Reserve Board were avowedly too high. There was no experience to deter mine the correct rates and it was believed prudent at the outset to approach the right level by lowering rates rather than by raising them. After several changes, the rates fixed on January 22, 1915, have since remained in force substantially unchanged and are lower than borrowing rates hitherto generally available. The record of rates established is shown in Exhibit I. Agricultural paper and that based on live stock are the only kinds eligible for rediscount with maturities beyond 90 days. For this a rate of 6 per cent has been established, while the rate for 90 days is 4J per cent. It has now and then been suggested that this is a discrimination against farmers and those interested in live stock. It will be observed that agricultural and live-stock paper has every privilege of other paper in lower rates for shorter maturities, and in addition has the special privilege of rediscount for maturities beyond 90 days not accorded to any other class of paper. In a rapidly developing section, such as this district, it is inevitable that there should be a higher percentage of fixed loans—capital advances for enterprises which, however worthy, can not quickly repay—than in an older district where there is less of development enterprise in proportion to accumulated capital. The board of directors have felt it wise policy that this bank should more assiduously maintain a liquid condition than would be necessary if in a district where the loans of member banks were proportionately more liquid. Consequently, the incentive is offered of considerably lower rates for the shorter maturities. The management of this bank has deemed it wise, while giving due weight to a member bank’s indorsement, to accept paper only upon its own merits. Accordingly, statements have been required from the makers of all notes presented for rediscount both because the Federal Reserve Bank can thus best exercise discriminating judg ment, and because it believes no practice more salutary than the development by member banks of adequate credit files. Exceptions have been made in the case of notes for small amounts, the applicant’s own estimate of a borrower’s assets and liabilities being accepted, but it is expected that ultimately copies of borrower’s own REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO. 9 statements will accompany even notes for small amounts. Adequate showing is also required of the responsibility and character of makers of collateraled paper. If paper is not of satisfactory quality the right is recognized of requiring additional collateral, but there seem good grounds for believing that no member bank can be operating wisely whose paper is normally of such inferior quality that it will not meet the moderate requirements imposed. In no instance, thus far, has additional collateral been required. Progressive excellence in the character and form of paper offered for rediscount is expected. At the outset it is obvious that more can not be exacted than that a mem ber bank should offer the best paper which it then has, but it would seem entirely proper that there should be progressively rigid requirements, under which, as a condition of approval, a member bank’s paper should conform to a higher standard after a year's experience than in its initial offerings. So far as has been possible, technicalities have been waived to avoid refusal of offerings, deficiencies being pointed out for betterment of subsequent offerings. O p e n -M a r k e t T r a n s a c t io n s . Under the authority to engage in open-market transactions there have been bought $1,010,000 of United States 2 per cent bonds (Table 5), and, through the Federal Reserve Banks of New York and Boston, certain bankers’ acceptances (Table 3), and municipal warrants (Table 4). Bankers’ acceptances have been bought at rates as low as 2 per cent basis and municipal warrants at only slightly higher rates. Thus far borrowers in this district have not offered important amounts of obligations of this character, as they doubtless will when they realize the opportunity offered to finance transactions of a certain character at such advantageous rates. States of this district will also doubtless authorize municipal warrants of eligible character when it is realized that temporary municipal borrowings can be negotiated at such low rates. By such open-market investments a Federal Reserve Bank may, within reasonable limits, earn what it chooses, independently of rediscounts for member banks. For this reason it is clear that no member bank should ever feel an obligation to rediscount with the Federal Reserve Bank for the latter’s supposed benefit. E a r n in g s . The total net earnings from April 1, 1915, to November 30, 1915, have exceeded the current expenses of that period (Table 8), although current expenses since organi zation exceed current earnings by $9,521.80. Organization expenses are carried at $33,626.19 and cost of printing Federal Reserve notes $34,394.27. The latter item has been reduced by $526.30, the pro rata amount for notes unfit for circulation which have been canceled. A condition in which reserves in excess of legal requirements have steadily increased during more than 12 months naturally restricts the volume of applications for rediscount. Total rediscounts made during the month of November, 1915, aggregated only $119,072, the smallest of any month since November, 1914. Other income has been derived through the purchases mentioned of bankers’ accept ances, municipal warrants, and United States bonds. The fear sometimes expressed that deficiency in earnings will be made up by assessments on member banks may, I assume, be dismissed as beyond the proba bilities. The relative unimportance of these expenses will be appreciated when it is realized that their annual rate represents approximately two one-hundredths of 1 per cent of the loans and investments of the member banks in this district. In other words, if the income rate upon their investments were 6 per cent, it would reduce this to only 5.98 per cent if the expenses were paid entirely by contributions of mem ber banks. While there seems no economic defense for an effort under existing conditions to employ a Federal Reserve Bank’s funds for the purpose of earning profit, yet what 28857—16-----2 10 REPORT OF FEDERAL, RESERVE BANK OF SAN FRANCISCO. may be called the psychological importance of reasonable earnings seems so great as to become a well-defined economic factor. The view that effort to make earnings is now undesirable of course has its basis in the belief that greatest protection to business interests will be had by withholding the Federal Reserve Bank’s credit-extending power so as to have it available when need arises. But those holding this view may underestimate the economic importance of present popular approval and unqualified faith in the success of the Federal reserve system. Earnings constitute the gauge of success applied by a large section of the public, including many bankers. It is char acteristically human to uphold the successful enterprise and to obstruct the unsuc cessful. A smaller percentage of money reserve coupled with unqualified approval, will constitute more potent power of support than larger reserves with less of popular confidence. There are collateral advantages in reasonable earnings. They would justify the most rapid internal development along lines of preparation for useful service, such as the development and thorough training of the credit department, the efficient service of which is so essential to discriminating judgment in time of stress and in which all eligible clerks should serve apprenticeship in order to provide for quick expansion of capacity to render vital service if stress arises; the thorough development of a depart ment of information as to conditions throughout the district, through which the man agement of the bank and the Federal Reserve Board would have closest touch with the trend of credit conditions. Naturally no development will be carried far, the cost of which must be paid out of capital. Such considerations urge earnings well in excess of current expenses. P u r c h a s e o p U n it e d S t a t e s B o n d s . One way to accomplish this without impairing a Federal Reserve Bank’s reserves would be by present purchase of United States bonds. The Federal Reserve Banks are the instrumentality through which it is designed that the undesirable bond-secured circulation is to be eliminated. To this end it will become necessary for them ulti mately to buy the major part of the outstanding 2 per cent bonds now pledged to secure circulation. Exchanged for 30-year 3 per cent bonds without the circulation privi lege, as provided by the Federal Reserve Act, they will gradually be bought by investors and this problem will thus be permanently settled and real elasticity in the currency attained, the volume of Federal Reserve notes then expanding and also contracting according to varying business requirements. A good many years will necessarily be required to accomplish this result, but meanwhile the Federal Reserve Banks would enjoy a net income averaging about 1£ per cent per annum upon the amount of bonds held. By substituting their own bond-secured circulation for that of member banks now outstanding, the bonds would be carried without important investment of reserve money. This would be unqualifiedly true if the present currency is not redundant in volume, and the present rate of redemptions indicates that it is not. It is to be observed too, if the present volume of currency should become redundant and consequently enforce greater redemptions, that, while this would correspondingly invade the reserves of the Federal Reserve Bank, it would be only because of a reduced volume of cash transactions incident to inactive com merce, when rediscount demands would be light. Heavy rediscount demands would appear only in conjunction with requirement for a large volume of currency. The expanding volume of business incident to the country’s growth involves necessarily a certain average increase in the volume of transactions settled with money, entailing the need of an increasing volume of currency. A volume of currency redundant to-day would soon be inadequate. More certain progress in the solution of this problem would be assured if the law were modified so that the privilege of issuing circulating notes should not be included in REPORT OP FEDERAL RESERVE BANK OF SAX FRANCISCO. 11 national bank charters hereafter granted or in those extended, with a requirement that Federal Reserve Banks should buy the circulation bonds offered by member banks at par at the expiration of their charters. F ederal R eserve N otes. Table 7 shows the amount of Federal Reserve notes issued and redeemed and the States to which shipped. It has been deemed wise policy to pay out Federal Reserve notes whenever possible inasmuch as thsir circulation in the place of gold means the retention of gold in the vaults of the Federal Reserve Bank where, as a basis for extend ing credit, it becomes a fortification and guaranty of stability of the business situation. Federal Reserve notes of this bank now outstanding are in effect gold certificates, $4,370,000 gold, equal to 100 per cent, having been lodged with the Federal Reserve Agent for their redemption. In conformity with authority conferred by the Federal Reserve Act upon the Federal Reserve Board to act as a clearing house for Federal Reserve Banks, this gold has been placed with the Federal Reserve Board in the form of order certificates in $10,000 denominations. Settlements are made between the Federal Reserve Bank and the Federal Reserve Agent by means of transfers in the gold settlement fund without the local handling of the money. C h e c k C o l l e c t io n . As provided by the Federal Reserve Act, and upon a plan approved by the Federal Reserve Board, this bank on August 1, 1915, established in this district a system for collecting checks, 141 banks voluntarily participating at the outset, the number having increased to 160 at the end of November. Thus far checks have been received from and sent to only those banks voluntarily joining this collection system, the depositing bank being credited and the drawee bank concurrently debited after as many days have elapsed as required for the drawee bank to receive checks sent and thereafter send funds for credit to offset the debit to be made. To give immediate credit would involve one of two courses: (1) Invest Federal Reserve Bank’s reserve in checks outstanding for collection, weakening proportionately its power to rediscount; or, (2) Require member banks to carry with Federal Reserve Bank balances sufficiently larger than required for reserve purposes to cover the amount of checks and remittances in transit. Distances are so great in this district that this would work a palpable injustice to distant member banks. In the case of a Seattle bank for instance, it Would be necessary to have an additional balance covering six days sendings which would be in transit, three days going and three days returning. The Federal Reserve Bank has neither paid nor charged exchange in these collec tions. Thus far, however, important elimination of exchange charges can not properly be claimed, as most of the banks joining the voluntary system had previously been accustomed to remit at par. As yet, the volume of checks handled, shown in Table 10, has not been important, but would doubtless be increased if all checks were received for collection which members of the collection system would be willing to have charged against their accounts, even if drawn upon or indorsed by member banks not of the collection system and nonmember banks. Exhibit L gives information as to rates of exchange charged in various parts of this district. If it be accepted as the broad purpose of the Federal reserve system to stabilize commerce, then the Federal Reserve Banks must establish channels for the collection of checks which will not become clogged in a financial crisis, as in 1907, otherwise such a possible dislocation of exchanges would always remain a potential menace. Appreciation of the importance of assuring safety of the whole financial and commer cial situation, and thus of every member bank, should disarm objections of those who 12 REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO. in spite of aspects unsound in present methods are reluctant to forego present exchange charges. Other provisions of the Federal Reserve Act offer opportunities for counter balancing profits not hitherto possible. St a t e B a n k s a n d T r u s t C o m p a n i e s . State banks and trust companies show many evidences of an attitude favorable to the Federal reserve system, but defer application for membership because no necessity of present service impels. This bank regards each sound State bank or trust com pany as a potential member of the Federal reserve system, having clear conviction of the fundamental importance of such membership. National banks and the Federal Reserve Banks now constitute the base of an inverted pyramid representing the entire credit structure of the country, including all State banks and trust companies. The sufficiency of that base is not in immediate question, but no State bank should fail to realize that the safety of the whole business situation, and consequently its own safety and prosperity, depend upon the sufficiency of that base, which would obviously be greatly broadened if a large Bection of the State banks were transferred from the superstructure and made a part of the base itself. It may reasonably be expected that the more conservative State institutions will promptly secure any legislation necessary to authorize membership and become mem bers early enough to avoid delay from congestion of applications when stress impends. The attitude of member banks toward the Federal Reserve Bank augurs well for such ultimate accessions. Although there are exceptions, usually growing out of lack of information of the Federal Reserve Bank’s methods and disposition, or lack of understanding of the Federal Reserve Act, yet for the most part there has been shown a spirit of cordial cooperation, which with better understanding and acquaint ance is steadily growing. From those banks concerning aspects of whose condition it has been necessary to make unfavorable expression there has come without ex ception frank and cordial response, suggesting the potentiality of this bank as a remedial influence. P o w ers op T ru stee, E xe c u to r , E tc. A list is given herewith (Exhibit J) of national banks in this district to which the Federal Reserve Board has granted special permits to exercise the powers of trustee, executor, administrator, or registrar of stocks and bonds. It is the opinion of counsel of this bank that under the laws of only one of the seven States constituting this district—viz. Washington—may a national bank act as trustee, executor, administrator, and registrar of stocks and bonds; but that also under the laws of California, Oregon, Utah, and Arizona it may act as registrar of stocks and bonds. Enabling legislation will broaden the opportunities of national banks to render such service. C o n d it io n s i n T w e l f t h D is t r ic t . The outbreak of the European war probably occasioned less dislocation of trade and industry in this district than in any other, and during the 12 months past there has been a moderate but widespread improvement in general conditions. Relatively the most unfavorable effect of the war has been upon ocean transporta tion, and the temporary closing of the Panama Canal has been an importantly untoward event for this coast. There have been interesting developments in shipping. Fol lowing withdrawal of the Pacific Mail steamers has come the recent report of their purchase by the American International Corporation, to place them again in Pacific trade, with intimation of important extension of service. The Java-Pacific line has been established by a foreign syndicate. The Japanese line is reported as doubling the number of its ships. The Union Iron Works, of San Francisco, of which Mr. John A. McGregor (class B director) is president, has now under way construction aggre REPORT OF FEDERAL RESERVE BANK OF SAN. FRANCISCO. 13 gating $18,000,000. Not only has foreign commerce through Pacific ports increased during the year in spite of handicaps, but there seems prospect of continued large expansion. Live-stock interests of eastern Washington, Oregpn, Idaho, Nevada, Utah and Arizona have thrived throughout the 12 months past, and now have satisfactory prospects. Agriculture has prospered. Grain growers of eastern Washington, Oregon, and southern Idaho received extraordinary prices a year ago, and this year have had large crops, with profitable, though somewhat lower, prices. Apples of Oregon and Washington, unsatisfactorily marketed a year ago because of interruption of exports, have sold at good prices this year. Hops, almost unsalable a year ago, now command excellent prices. Growers of raisins and prunes have had satisfactory results, par ticularly this year. Fresh and canned fruits have not been so satisfactory. In citrus fruits, the crops have been large. Prices of lemons have been continuously demoral ized and unprofitable. The first two-thirds of last year’s orange crop was sold at unprofitable prices, but the final third commanded excellent prices. Record prices are being paid for early oranges of this year’s crop, more than 3,000 carloads having been reported as already shipped from the Porterville (Cal.) district. Beans consti tute an important California crop, large amounts being exported. Last year’s returns were unusually large. The harvest this year has also been large and prices good. The wine industry is not prosperous, and growers of wine grapes suffer accordingly, but table grape3 have sold this season in large quantities at profitable prices. Activity in mining has steadily expanded during the past year, copper mines, chiefly centering in Utah and Arizona, making record output. Advancing prices are benefiting producers of silver, the output of which has a value approximating two-thirds that of the gold produced in this district, including Alaska. Interest in gold mining is reported as increasing. One of the interesting gold producers is a large corporation reclaiming many thousands of acrcs in the Sacramento Valley by building dikes and incidentally washing out gold from the earth handled to pay the cost of the development. Lumbering, constituting 60 per cent of the commerce and industry of Washington and Oregon, has been greatly depressed until recently, when important buying, including some on the part of railroads, has imparted a better tone. There is also increase of new building. The outlook is much improved. The petroleum industry, likewise depressed a year ago, has of late shown expand ing consumption with advancing prices. The production approximates 100,000,000 barrels per annum. Producers of Hawaiian sugar have been receiving extraordinary returns this year, in contrast with disastrous conditions predicted before the outbreak of the war. Important dealings in stocks of sugar companies have resulted. Fisheries, one of the important industries of the Pacific coast, have prospered during the past 12 months, the salmon pack o f Alaska being larger than ever before. This is one of the important items of the industries of Alaska, whose total commerce now approximates $100,000,000. Earnings of the principal railroads operating in this district, now at record point, have continuously expanded throughout the past 12 months, evidencing the rising volume of general commerce and industry. This district is enormously rich in natural resources and surpasses in variety of products. Harvesting of some character is always in progress—as, for instance, in citrus fruits, lemons are gathered continuously the year round; the first oranges are gathered in November and picking continues through the succeeding winter, spring, and summer; strawberries ripen every month; there are always fresh vegetables. The distribution of harvesting throughout the year balances liquidating transactions against new requirements in a remarkable way. An illustration is that live-stock 14 REPORT OF FEDERAL RESERVE IBANK OF SAN FRANCISCO. interests of Idaho borrow in the spring and liquidate in the fall, while those of Arizona borrow in the fall and liquidate in the spring. Proceeds from the sale of early products provide the means to meet later requirements in the same locality; the same product matures in different sections at such diverse times that the realized proceeds of a harvest in one part would finance the harvest needs of another. There is probably less of a peak credit load in this district than in any other, and seemingly, if its credit resources are mobilized, they will rarely fail to suffice for its commercial needs. Bank deposits have shown large gains within 12 months, and bank clearings reflect important increase in the volume of transactions. A plan of cooperative credit, directly benefiting farmers, and incidentally creating paper admirably eligible for rediscount with the Federal Reserve Bank, has been developed at Weiser, Idaho, which is interesting because of successful operation, and unusual because under it creditors instead of debtors cooperate. There are abundant evidences of continuous progress throughout the district and growth in both wealth and population. The Federal Reserve Bank of San Francisco has a great field and large opportunity for useful service. T a b le I Statement of condition of Federal Reserve Bank of San Francisco, Nov. SO, 1915. RESOURCES. Bills discounted: Members................................................................................................................................ $686,776.97 Bought.................................................................................................................................. 521,340.79 Investments, municipal warrants.............................................................................................. 1,132,342.22 United States bonds on hand..................................................................................................... 1,000,475.00 Interest accrued on United States bonds................................................................................... 3.3t>6. (>6 Organization expense.................................................................................................................. 33. t>2i>. 49 Cost of Federal Reserve notes..................................................................................................... 34,394.27 Furniture and equipment........................................................................................................... 5,235.37 Current expense........................................................................................................................... 1,311.87 Profit and loss............................................................................................................................. 9,521.80 Due from other Federal Reserve Banks: Collected funds...............................................................................................$2,449,295.49 Items in transit.............................................................................................. 432,890.23 ------------------- 2,882,185.72 Exchanges for clearing house...................................................................................................... 24,951.93 Transit ac count........................................................................................................................... 15,307.89 National-bank notes and notes of other Federal Reserve Banks.............................................. 39.015.00 Federal Reserve notes on hand................................................................................................... 1,535,485.00 N ickels and cents................................................................................................................................... 3.14 Reserves: Gold settlement fund.....................................................................................$7,538,000.00 Due from Treasurer of United States, gold redemption fund (Federal Reserve notes)............................................................................................ 21,625.00 Gold bullion and coin.................................................................................... 347,045.00 Gold certificates.............................................................................................. 5,454,840.00 Sil ver certificates............................................................................................ 9.657.00 16,840.09 Legal tender notes.......................................................... .............................. Silver coin...................................................................................................... 2o.65 Total reserve...................................................................................................................... 13,385,433.65 Total resources................................................................................................................... 21,310,779.77 LIABILITIES. Capital paid in................. ......................................................................................................... $3,941,500.00 Capital, suspense account........................................................................................................... ........ 300.00 Uneamed discount...................................................................................................................... 5.884.81 Due to other Federal Reserve Banks......................................................................................... 19,317.04 Due to member banks................................................................................................................. 17,327,170.55 E xpense ch ecks........................................................................................................................... .........700.48 Casniers* checks outstanding...................................................................................................... .........847.00 Deferred credits........................................................................................................................... 1 5 , 059.89 Federal Reserve notes.......................................................................................... $4,370,000.00 Less gold with Federal Reserve Agent for retirement of Federal Reserve notes.. 4,370,000.00 ------------------- --------- .00 Total liabilities.................................................................................................................. 21,310, 779.77 Table California. Oregon. Nevada. Idaho. Utah. Washington. Total for month. Months. I November. December.. 1914. 14 January.. February. . March........ April.......... May........... June.......... July........... Aug'ist....... September. October___ November. 1915. Total, 1915................. Total rediscounts to date... Average per piece................ 107 it, 024,430 83 111 101 102 180 171 211 1 $0,300 1 | 15,000 21.900 21.900 10,450 154 22 | 131 15 : 74 11 39 709,043 50-,478 572,749 332,975 1,050,933 059,480 470,908 32M2X 254,905 200,330 48,454 91 1,483 5,328,290 93 1,590 0,352,72(5 3,995 100 $12,592 1,023,338 109 1,035,930 117 10,102 232 229 251 271 348 229 198 135 101 835,413 701,847 744,225 428,901 1,237,498 800,155 792,547 448,311 440,028 380,700 119,072 428.329 428.329 2,534 103 2,230 105 2,339 7,054,703 8,090,093 3,416 $3,000 8 j $9,592 99 11,014,838 Total. B <B <!a $8,500 j 1 4 4 7 7 5 0 8 5 3 3 2 8,500 22 14,203 1G 34,070 35 08,119 38 31,412 32 85,853 50 1 ! 39,788 : 71 73,585 1 20 33,0(53 15 28,253 11 14,955 i 4 0,580 i ! ’ 17 320 1429,941 17 i 321 1438,441 . . . 1,305 I 8 ;S74,135 74.135 74.135 9,209 I 4 ' 7 0 8 2 0 9 7 5 9 4 3 10 3.000 20,373 . 17 34,152 i 35 98,357 I 8 11,012 ! 29 03,105 ' 20 71,907 30 114,511 15 21 Of4 j 30 i 15 05,209 5 22,050 $31,134 9 $o2,012 j• . . . j ............! 9 i 37,400 ! 40,749 112,,121 31 1223 042.001 31 224 045.001 2,879 25 130,101 25 !130,101 ....j 5,200 5,000 37,547 48,225 127,543 57,730 38,449 40,200 20,387 REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO, Arizona. 2A.—Classification of rediscounts from Nov. 16,1914, to Dec. 1,1915. Cl Arizona. 2B.—Classification of rediscounts from Nov. 16, 1914, to Dec. 1, 1915. Idaho. California. Nevada. Oregon. Utah. 16 T a ble Washington. Total by classifications. Pieces. Amount. Pieces. Amount. Pieces, sAmount. Pieces. Amount. Pieces. Amount. I Pieces.! Amount. Pieces. Amount. Pieces. I Amount. Accepted b y - 1,590 6,352,726 ; I 61 11 3 $160, 655 129, 960 22, 919 : 563 ' 6, 8 I $74,135 . . . ! ................ 75 37 23 i 11 8192, 834 i 102.019 81, 517 11 , 7, 0 : 1 62,5,000 1 690 19, 142 ! 10 30 68,898 j 5 46 6 24,274 ■ 4 000 , 11 37, 623 22, 000 2 i 6 I 4i 4 3 j 1 Si000 147 116. 441 $7,280 27,753 30,536 20,263 15,351 28,978 321 74,135 438,441 224 93 ! 645,001 25 19 12,360 ,150 783,955 146 j 405,002 65 ! 354,321 142 648,360 42 ‘ 342,061 77 ; 422,722 114 ! 702,544 120 i 1, 116,125 418 ! 1, 751,518 11 i 328,972 54 | 235,113 428,329 2,339 1 8,090,693 2,000 24,203 800 22,500 107,634 10,000 16,000 65,403 31 L i 19 165 —Acceptances purchased, Nov. 16, 1914, to Dec. 1, 1915, segregated by acceptors and months purchased. March. April. May. j June. July. August, j September. 424,492.37 823,267.93 j 323,684.04 234,278.81 142,562.72 364,006.78 121,316.43 $6,875.00 25,000.00 8,750.00 $8,750.00 9,348.00 45.000.00 10.000.00 29,681.14 69,054.98 58,750.00 262,459.12 Total. $26,875.00 246,442.36 208,750.00 8,750.00 57,346.00 192,524.33 50,000.00 27.500.00 166,624.32 : 1,712,289.17 16,574.80 26,574.80 28,853.67 135,991.28 I 6,248.66 ! 2,373.96 119,068.66 95,762.50 11.250.00 118,687.55 2,373.96 286,771.41 2,982,849.61 F R A N C IS C O . *i7,*566.*66* November, j SAN 316, October. OF .$1, $167,429 130,161 ‘ii'm oo Total. 17 1 7 23 1 5 _ i_ Bank of America......................................................... $11,250.00 Bankers Trust Co., New Y ork.................................. . $61,442.36 $85,000.00 ...................!................... |$50,000.00 25,000.00 American Exchange National Bank, New Y ork___ .................... $100,000.00 ........................ !....................... I$100,000.00 Chase National Bank, New York............................... 8,750.00 10, 000.00 i National City Bank, New York................................. *53,*026.*46 **42,’ 975.* 11 ;................. . $19,828.76 L Columbia Trust Co., New Y ork................................ . 5,000.00 National Bank of Commerce, New Y ork................. . 17,500.00 *023*55* *695,292.82* '223,*684.*04 Guaranty Trust Co., New Y ork................................. 61,980.09 192,436.78 32,566.43 Goldman Sachs & Co., New Y ork............................ . 10,000.00 Mechanics Metals National Bank, New York....... 20,582.63 Bank of New York, National Banking Association, 44,070.00 New York................................................................. 10, 000.00 95,762.50 First National Bank, Boston, Mass.......................... . Merchants National Bank, Boston, Mass.................. 118,687.55 ; Phila lelphia National Bank, Philadelphia, P a........ Irving National Bank, New York.............................. & 101 BANK T a b l e 3. 21,900 201 RESERVE Total number of banks re discounting to date......... 760 $1,159,722 41 143,270 24 225,652 127 629,267 30 284,025 | 34 212,993 ! 97 633,570 j 110 1,078,125 S 317 1,471,798 323,972 10 190,332 40 FEDERAL Total rediscounts for period..................... $21,900 OF Agriculture.......................... L h e stock........................... Grain, flour, feed................. Fruit packers and shippers. Meat and fish packers........ Lumber............................... Manufacturing.................... Wholesale merchandise...... Retail merchandise............. Petroleum........................... Miscellaneous...................... REPORT Classifications. Table 4.—Short-term warrants, notes, and bonds purchased Nov. 16,1914, to Dec. 1,1915, classified by States and months purchased. California. Qeorgia. Marnh ___________ _________________________ ____ _____ ____ Mftv_____________________ ______ ___________________________ !___________ $1,020.00 April ...............................................................................................................i....................... June................................................................................................ 1 $12,422.25 July................................................................................................. 1 5,250.00 August............................................................................................ ; 10,666.25 Srotam bar......... ...................................................................................i Octoh«r _____ _________________________ _______ _______ i __________ November.....................................................................................................ij 4,200.00 $63,450.00 Total..................................................................................... 1 32,538.50 63,450.00 I Oregon. New Massachu setts. Hampshire. New Jersey. New York. $12,111.02 $40,000.00 260,400.00 310,668.42 $15,000.00 221,187.50 50,209.59 20,300.00 24.000.00 25,468.75 13,124.58 10.000.00 1,020.00 916,465.51 15,000.00 71,004.35 Utah. $54,115.25 115,554.91 600,000.00 $20,358.40 $55,135.25 167,665.93 860,400.00 338,090.67 380,427.09 668,b51.16 70.759.58 23.124.58 88,008.40 20,358.40 2,651,862.66 153,989.59 587,175.32 21,290.83 1,532,125.90 Total by month. T a b l e 5. — United States bonds purchased. Description. United States consols of 1930................................................................................................................. D o..................................................................................................................................................... Total.............................................................................................................................................. Maturity. 1930 1930 Rate. Basis. 2 2 2.0189 2.0182 Par value. Carried at— $1,000,000 10,000 $990,625 9,850 1,010,000 1,000,475 REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO. Municipalities within State of— Month. 18 T a b le 6.—Gold settlement fund. TABULATION OP TRANSFERS, M AY-NOVEM BER, 1915. Tune. May. For account of— Boston: Special transfers........ Settlements................. New York: Special transfers . . . . Settlements................. Philadelphia...................... Cleveland........................... Richmond.......................... Atlanta: Special transfers........ Settlements................. Chicago: Special transfers.......... Settlements................. St. Louis............................ Minneapolis...................... ~K~ar>gfl.g C ity ...................... Dallas............................... Federal Reserve Agent Gold deposited through assistant treasurer of United States, San Francisco........................ Total........................ September. August. October. November. Total. Net. We Dr. WeCr. We Dr. WeCr. W e Dr. We Cr. We Dr. WeCr. We Dr. WeCr. We Dr. WeCr. We Dr. WeCr. W e Dr. W eCr. W e Dr. W eC r. G. S. F. G. S. F. G. S. F. G. S. F. G. S. F. G. S. F. G. S. F. G. S. F. G. S. F. G. S. F. G. S. F. G. S. F. G. S. F. G. S. F. G. S. F. G. S. F. G. S. F. G. S. F. 16 2,272 10 200 50 26 950 6 1 60 450 904 1 222 1 2 1,424 200 14 3,994 22 2 2 568 24 87 18 1,200 3,725 126 1 2 1 16 2 1 1 30 55 5 570 1,679 651 Balance in gold settlement fund Nov. 30,1915, $7,536. July. 20 4 2 1 2 109 6 4,694 1 3,306 4,452 17 51 100 2 3,921 2,728 35 2 2 6 1 2 4 1 12 1 3 3 6 11 1 44 3 2 2 3 251 1 176 1 621 1,852 1 1 3 18 1 1 2,978 1 1 2 30 9 15,813 13 6 17 2 15 2 25 2 80 112 3 200 51 1 3 3 5 230 283 3,453 235 61 1 3 4 6 1,100 3,110 1,694 1 4,347 4,445 595 ia ,6 0 0 2,213 20 1 .........5* 17 4,027 2,884 2,148 7 12 80 68 390 6 16 14 25 230 961 42 87 21 571 36 71 7 200 5,980 4,485 26 23,143 25 30 5,980 15,607 8,296 760 BEPOET OP PEDEBAL BESEBVE BANK OF SAN FRANCISCO. [G. S. F .=G old settlement fund.] ANALYSIS OF NET MONTHLY TRANSACTIONS TO NOV. 30, 1915. May. For account of— Exchange.. . D o .......... D o ......... D o ......... D o ......... D o ......... D o......... D o......... D o.......... D o......... D o......... Boston................................... New Y ork............................. Philadelphia......................... Cleveland.............................. Richmond............................. Atlanta.................................. Chicago.................................. St. Louis................................ Minneapolis........................... Kansas City........................... Dallas..................................... Net ex change. Investments. D o .......... D o ......... Other trans actions. D o .......... September. October. 104 4,226 4 2,694 1 1 2 346 24 86 18 2 1 1 69 5 2 1 2 Net total. 1,400 250 570 89 2 1 1 2 6 4 1 38 938 1 2 1 29 3 2 2 3 6 2,776 2,763 114 2,904 1,200 1 2 2 1 1 2,692 2 15 973 1,125 220 87 100 8,110 2 1,834 3,298 1 2 3 2 2 50 36 1 3 4 6 3 3 5 1,815 3,237 250 175 1,043 347 102 4,872 .........5 17 6 4 61 2 40 1,143 1,865 7 571 36 71 7 25 4,335 76 2,659 74 5,980 200 2,046 8 350 74 1,100 Federal Reserve Agent......... Net November. We Dr. W eCr. We Dr. We Cr. We Dr. We Cr. We Dr. We Cr. We Dr. We Cr. We Dr. We Cr. We Dr. WeCr. We Dr. W eCr. G.S.F. G.S.F. G. S.F. G. S.F. G. S. F. G. S.F. G. S. F. G. S. F. G. S. F. G .S.F . G. S.F. G .S.F . G .S.F. G. S.F. G.S.F. G .S.F. 3,864 Boston................................... New Y ork.............................. Atlanta.................................. Goid....................................... August. 230 30 3,218 7,536 REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO, Purpose. July. June. 20 REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO. T a b le 7 .—Federal Reserve notes—Federal Reserve Agent1s account to Nov. 30 , 1915, inclusive. Received from comptroller: 5-dollar Federal Reserve notes.......................................... .................................. $4,160,000 10-dollar Federal Reserve notes.......................................................................... 2,760,000 20-dollar Federal Reserve notes........................................................................... 1,680,000 50-dollar Federal Reserve notes........................................................................... 600,000 100-dollar Federal Reserve notes......................................................................... 800,000 ---------------- $10,000,000 On hand Nov. 30,1915, p. m.: 5-dollar Federal Reserve notes............................................................................ 2,360,000 10-dollar Federal Reserve notes........................................................................... 1,600,000 20-dollar Federal Reserve notes............................................. ............................ 640,000 50-dollar Federal Reserve notes........................................................................... 400,000 100-dollar Federal Reserve notes......................................................................... 400,000 ---------------5,400,000 Issued to Federal Reserve Bank......................................................................................... Received from Federal Reserve Bank and sent to Comptroller of Currency for cancellation and destruction.................................................................................................................................. 4,600,000 Federal Reserve notes outstanding..................................................................................... Deposited by Federal Reserve Agent with Federal Reserve Board in the form of gold order certificates in $10,000 denominations, for redemption of Federal Reserve notes...................... 4,370,000 230,000 4,370,000 Received from Federal Reserve Agent..................................................................... $4,600,000 Returned to Federal Reserve Agent for redemption................................................ 230,000 Net totalreceived from agent.............................................................................................. In vaults of bank Nov. 30,1915..................................................................................................... 4,370,000 1,535,485 Federal Reserve notes in hands of public........................................................................... 2,834,515 Received from Federal Reserve Agent......................................................................................... Delivered to Federal Reserve Agent for redemption................................................................... 4,600,000 230,000 Net amount notes received.................................................................................................. Redeemed: Member banks.......................................................................................................... $370,245 Other Federal Reserve Banks.................................................................................. 194,685 4,370,000 Total redemptions................................................................................................................ 564,930 * On hand Nov. 30,1915................................................................................................................... 4 934 930 535^485 Total amount of issues and reissues.................................................................................... 3,399,445 Distribution approximately as follows: Paid over counter.................................................................................................................... California.................................................................................................................................. Washington.............................................................................................................................. Utah......................................................................................................................................... Idaho........................................................................................................................................ Oregon...................................................................................................................................... 12,190,950 325,615 828,700 50,000 1,000 3,180 Total...................................................................................................................................... 3,399,445 T a b l e 8.— l\ Earnings of the Federal Reserve Bank of San Francisco, Nov. 16, 1914, to Nov. 30, 1915. Amount invested. Earnings from: Bills discounted member banks............ . ............................................. Bills purchased (acceptances).............................................................. Investments: United States bonds............................................................................. Warrants............................................................................................... Sundry profits.............................................................................................. $8,090,185.00 2,870,481.58 $61,811.08 12,018.31 1,010,000.00 2,651,863.66 16,747.97 17,255.27 1,357.80 Total ftfl-mings............................................................................... 1 No doubt many of these were shipped to country bank correspondents. Total income since Nov. 10, 1914. 109,190.43 REPORT OF FEDERAL RESERVE BANK OP SAN FKANCTSCO. T a b le 8A . 21 —Expenditures >>f the Federal Reserve Bank of San Francisco to Nov. SO, 1915. | Total since Nov. 16,1914. 1. Current E xpenses . Federal Reserve Board assessment for general expenses, monthly proportion. Federal advisory council (fees)............................................................................ Directors’ fees....................................................................................................... Legal fees. Salaries: Bank officers........................................................................................................................ Clerical staff......................................................................................................................... Special officers and watchmen............................................................................................ Traveling expenses: •Directors.............................................................................................................................. Olficers and clerks— Federal Reserve Agents’ conferences........................................................... $918.70 Ad visorv councils......................................................................................... 950.60 Governors’ conferences................................................................................. 2,664.74 Within twelfth district................................................................................. 1,266.84 ' *2;(moo T o ta l........................................................................................................................ Per diem allowance of directors................................................................................................ Telephone................................................................................................................................... Telegraph................................................................................................................................... Postage....................................................................................................................................... Expressage................................................................................................................................ Rent........................................................................................................................................... Insurance and premiums on fidelity bonds............................................................................. . Light, heat, and power............................................................................................................. Printing and stationery........................................................................................................... . Repairs and alterations............................................................................................................. All other expenses, not elsewhere specified............................................................................. . Federal Reserve notes, cost...................................................................................................... 5,800.8a 345.00 402.15 349.15 1,773.24 287.38 16,875.44 871.91 285.40 5,333.83 4,078.79 2,411.58 526.30 Total current expenses. $6,559.33 42,125.0027,788.85 110.00 168.00 118,712.2a 2. Organization E xpenses . [Carried from current expenses, account expenses prior to Nov. 16,1914.] San Francisco clearing house membership..............................................................$1,000.00 i Alterations to banking quarters.............................................................................. 1,568.05 j Traveling expenses October conference, 1914, 9 directors and governor................ 4,607.00 Express on coin and currency in connection with initial payments of capital i stock and reserve.................................................................................................. 6,682.09! Assessments of Federal Reserve Board...................................................................13,817.08 Stationery (ordored by Federal Reserve Board).................................................... 5,952.27 33,626.49 Total. 3. Cost op F ederal R eserve N otes. Cost of manufacturing 3,212,000 notes, amounting to $°8,940,000..........................$31,373.59 Cost of expressage, 180,000 notes, amounting to $2,000,000................... $1,0M.00 Cost of postage and insurance, 928,000 notes, amounting to $8,000,000. 2,499.88 ------------3,499.88 Sundry costs........................................................................................................... 47.10 34,920.57 Less: A mortization (manufacturing) 40,000 notes, amounting to $230,000. Amortization expressage 40,000 notes, amounting to $230,000....... Redemption cost............................................................................. 390.70 115.00 20.60 526.30 34,394.27 Total. 4. E quipment . Furniture and fixtures. Vaults.. Machines, typewriters, adding machines, scales, etc............................................. 4,303.02 Total equipment.............................................................................................................. 5,235.37 Total expenditures........................................................................................................ . 191,968.36 T a b le 9.—Capital and deposits paid and estimated additional to be received. Per cent of sub scrip tions. Taid by re serve city banks. Nov. 1,1914................................................. b $743,266.67 F e b .1,1915................................................. May 1,1915................................................. Increases and decreases, net...................... I Date due. i 743,266.67 743.266.66 29,950.00 Reserve deposits. Paid by country banks. Total capital. $552,583.33 $1,295,850.00 552.583.33 552.583.34 24,000.00 i1 j| 2.591.700.00 3.887.550.00 3.941.500.00 t i 2,259,750.00 1,681,750.00 Nov. 16,1911 D o.......... Nov. 16,1915 D o.......... Per cent of re quire ments. Reserve city banks. A $8,357,033.00 A 2,122,803.00 A Country banks. Total reserve. Combined capital and reserve. $1,295,850.00 $8,357,033.66 $4,525,198.00 12,882,231.00 *i4,‘ i78*68i.*66 15.473.931.00 16.769.781.00 2,464,953.00 17,469,987.00 121,411,487.00 zk ESTIMATED ADDITIONS.* i Total Nov. 16,1916, subject to call............ Date due. 3,941,500.00 May 16,1916 D o.......... Nov. 16,1916 D o.......... A * * 2,122,803.00 '2*122*803*66* 2,464,953.00 2,464,953.00 23,5?4,290.00 25.999.213.00 28.122.046.00 30.586.999.00 34.528.499.00 OPTIONAL TRANSFERS. i!i i i i i Nov. 16,1917 D o.......... A A 8,491,212.00 7,394,859.00 Total after Nov. 16, 1917, if entire optional reserve is carried w ith Federal Reserve Board and entire capital paid, $50,414,570.2 Original subscribed capital, £7,775,100. * General ledger balances about 30 days after due date used in order to include those not remitting promptly. * This does not include possible Government deposits. 43 019,711.00 50,414,570.00 BEPOET OF FEDEBAL EESEEVE BANK OF SAN FRANCISCO, Capital stock—payments made. REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO. T a b le 23 10.— Intradistrict collections for August, September, October, and November. NUMBER OF BANKS IN COLLECTION SYSTEM. Aug. 1........................................................................................................................................................... 141 Nov. 30......................................................................................................................................................... 160 NUMBER OF BANKS DEPOSITING CASH LETTERS, AND ITEMS RECEIVED FOR DEFERRED CREDIT DURING THE PERIOD. Number of banks. Members of collection system................................................. Paying desk and nonmembers of collection system.............. 30 22 Cash letters. Items. Average per letter. 14.1 3,035 111 215 Total............................................................................. 52 Cash letters and items outgoing during the period: Members of collection system.......................................... Nonmembcrs of collection system................................... 110 34 1,137 91 3,049 97 2.8 1.1 Total............................................................................. 144 1,228 3,146 2.6 3,146 TOTAL AMOUNT RECEIVED DURING PERIOD. Average per item. Amount. From members of collection system.................................................... $244,547.00 From nonmembers of collection system and paying desk.................. 65,957.00 $80.58 994.21 310,504.00 98.70 Total........................................................................................... Average per letter. $1,137.42 TOTAL AMOUNT SENT DURING PERIOD. To members of collection system...... . To nonmembers of collection system.. Total. Items received on— $216,110.00 94,394.00 $70.87 973.13 $190.70 1,037.29 310,501.00 98.70 262.85 Number. Percent. Amount. Per cent. 2-day points.................................................................................. 4-dav points................................................................................... 6-day points................................................................................... 8-dav points................................................................................... 10-day points................................................................................. 2,272 701 84 68 21 72.2 22.3 2.7 2.1 .7 $193,304 92,812 18,344 5,257 787 62.2 29.9 5.9 1.7 .3 Total.................................................................................... 3,146 100.0 310,504 100.0 Collection system inaugurated Aug. 1. REPOET OP FEDERAL RESERVE BANK OF SAN FRANCISCO. A. Outline and area of district. E x h ib it DISTRICT NO. 12. TotalArea 716,499 Sq.M ile s Total P o p u la tio n 6,044,295 B a n k in g S t r e n g t h Number of Membes B a n k s Num berofStateB anks T& ta l Num ber o f B a n k s $ 1,965,755,000.9? 529 1.197 1, 7£6 E xhibit B . Rate of development in district in population and wealth, by States. A rizona... California.. Idaho........ N evada... Uti________ Washington. Total.. . . San Francisco. Los Angeles. •. Portland......... Tacoma........... Seattle............. Spokane.......... Salt Lake........ 1912 1850 1890 1864 1859 1896 Area (square miles). Assessed value of property.* Population. 1870 1890 1900 1910 19151 1910 $ 120,000 113,956 155,652 84,000 110,690 96,699 84,928 70,574 9,658 560,247 14,999 42,491 90,923 86,786 23,955 88,243 1,208,130 88,584 45,761 317,704 210,779 357,232 122,931 1,485,052 161,772 42,335 413,536 276,749 518,103 204,354 2,377,549 325,594 81,875 672,765 373,351 1,141,990 230.000 2,757,895 350.000 95,000 795,587 410.000 1,407,813 86,000 1,879,000 716,499 43 829,059 149,473 5,728 8,293 73 1,107 2,316,433 298,997 50,395 46,385 36,006 42,837 19,922 44,843 2,020,478 342,782 102,679 90,426 37,714 80,671 36,848 53,531 5,177,478 416,912 319,198 207,214 83,743 237,194 104,402 92,777 6,044,295 3 448,502 8 438,914 8 260,061 92,000 *313,039 3 135,657 8 109,530 3,693,000 515,420 290,905 231,161 101 51 40 85 40 43 12,854 1 In thousand dollars only (000 omitted). 73,000 845,000 790,000 ’‘'265*362 85,619 58,449 f 1911 1912 $93,000 2,602,344 329.000 73,000 844.000 146.000 955.000 $140,000 2.920.000 418.000 92,000 905.000 200.000 1.005.000 932,413 214,859 1,031,901 5,042,344 545,064 384,348 290,000 54,530 211,887 92,309 58,449 5,680,000 510,429 458,934 296,199 73,298 210,929 91,934 62,206 6,294,891 647,230 508,366 314,212 74,291 215,075 89,090 68,129 * Estimated by U. S. Census Bureau. 1913 $375,862 3,202,450 425,196 112,210 REPORT OF FEDERAL RESERVE BANK OP SAN FRANCISCO. Admitted into Union. K> Cl 26 E x h ib it C. Value of chief products of Twelfth District. VALUE AT SOURCE OF PRODUCTION. 1 Year. Potatoes.........: ................. .................................................... Hay......................................................................................... Hops........................................................................................ Beans and peas....................................................................... Sugar-beet crops..................................................................... Vegetables............................................................................... Deciduous fruits..................................................................... Grapes..................................................................................... Oranges, lemons, and grapefruit........................................... Domestic animals sold or slaughtered................................... Dairy products....................................................................... Poultry and eggs.................................................................... W o o l...................................................................................... Salmon pack1................................. - ...................................... Tuna pack *............................................................................ Timber.................................................................................... G old........................................................................................ Coal......................................................................................... Petroleum............................................................................... Cement.................................................................................... i Subdivision by States estimated. Arizona. 1914 $1,021 1914 150 1914 756 1914 132 1914 3,995 1909 1909 232 1914 1909 ............ 379* 241 1909 1909 25 1913-14 4,847 1909 1,158 1909 1909 565 1914 1,021 1914 1909 1913 1913 1913 1913 1913 1913 1913 1909 * Estimated. 1,419 4,023 2,384 63,228 710 California. Idaho. Nevada. Oregon. Utah. $11,788 $4,687 $3,990 $8,879 $887 5,787 1,656 307 3,.982 4,836 720 24,815 3,515 397 2,233 2,852 1,092 1,680 2,530 7,245 15,787 13,636 6,665 8,593 43,173 2,839 1,731 i<5 39 6,396 85 2,705 1.311 6,145 264 2,449 718 6,887 1,008 641 3,339 18,359 83 863 10,847 99 28 12 19 22,683 17,434 6,656 4,762 33,627 12,866 6,916 2,315 23,371 2,467 667 3,734 322 1,259 12,703 1,843 2,601 2,050 2,810 2,489 908 3,707 157 5,000 30,200 45,000 10,689 503 977 1,344 1,627 11,795 3,565 20,653 6,033 9,718 108 813 7,903 1,486 6 25,024 4,055 14,057 13,986 3 7,309 183 719 116 5,384 5 28 47,487 6,558 1,233 93,000 Manufactured products.......................................................... 529,000 61,000 Washing ton. $38,909 5,700 3,691 4,154 19,261 665 126 2,988 4,274 51 10,249 9,962 5,354 582 5,095 89,155 696 200 147 9 9,243 2,853 220,000 Total. $70,161 22,418 36,127 19,685 111,110 5,235 6,894 10,161 14,693 27,800 11,081 22,683 90,441 46,856 25,780 12,461 8,959 5,000 177,943 43,703 27,159 108,003 22,919 14,776 47,487 10,644 50,000 *986,000 1 Equal to only one-third the value of manufactured products of New York City. Approxi mate percentage for United States. 9.0 5.0 40.0 iL 8 13.5 30.0 50.0 50.0 6.0 BEPOBT OF FEDERAL RESERVE BANK OF SAN FRANCISCO. [In thousand dollars (000 omitted). Items less than five million for district omitted.) 19.0 49.0 67.0 57.0 61.0 1.9 19.2 11.5 22,000 11,00 E x h ib it D . Bank clearings, principal cities in Twelfth District. 1913 1910 San Francisco. Los Angeles.. . $1,834 478 1914 1915 (11 months). $2,323 811 $2,677 $2,624 1,167 1,210 $2,516 1,145 $2,432 941 517 530 241 327 627 664 219 577 627 203 314 506 1906. Portland........... Seattle............... SpoVane............ Salt Lake City. 281 164 211 602 225 174 1323 1905 Oakland................................... Sacramento............................ . Fresno..................................... San Diego................................ Pasadena................................ . Stockton.................................. San Jose................................... Bakersfield (organized 1912). * Up to and including Dec. 9. N ote.—>Only part of the above figures have been furnished directly by the clearing houses of the respective cities. 1910 $157 69 37 66 40 32 27 1912 $192 92 51 131 47 45 35 1914 1913 $188 108 57 134 47 45 i 35 23 ! ! $176 103 53 103 43 47 36 23 1915 (11 months). $164 91 90 BEPOBT OF PEDEBAL RESERVE BANK OP SAN FRANCISCO. (In millions only (000,000 omitted).] to Twelfth District. 28 E x h ib it E .— Banking power of the [In thousand dollars (000 omitted).] Arizona. California. Nevada. Idaho. Utah. Oregon. Washington. Supervision................................................. Na tional. State. Na tional. State. Na tional. State. Na tional. State. Na tional. State. Na tional. State. Number....................................................... 7 47 266 463 58 124 10 21 86 175 23 91 Total district. Na Na tional. State.1 tional. State 276 1,197 78 528 Date of report (1915).................................. Nov. 10. Mar. 4. Nov. 10. Oct. 16. Nov. 10. Nov. 10. Nov. 10. June 23. Nov. 10. Sept. 2. Nov. 10. Nov. 21. Nov. 10. Sept. 2. Nov. 10. ASSETS. Loans and discounts.................................. Stocks, bonds, warrants, and other securities.................................................. Banking house furniture and fixtures and other real estate....................................... Cash means................................................. Other assets................................................. Total assets..................................... . $4,703 $12,788 $272,514 $472,235 $19,163 $15,261 $5,481 $7,468 $52,402 $34,418 $19,773 $35,147 $66,788 $68,487 $440,824 $645,804 21,370 21,162 154,539 165,399 4,158 37,332 861 14,383 24,931 26,425 268,778 1,403 15,987 55/681 186,600 7,210 2,004 2,403 96,208 126,430 6,155 1,481 2,233 1,140 19,046 7,972 7,523 4,811 381 2,594 62 1,013 14,084 33,004 6,972 177,869 116,975 193 13,795 3,826 1,440 10,252 389 1,590 6,849 40 342 2,574 125 590 3,544 220 3,486 26,303 548 2,765 15,160 1,153 1,040 11,854 207 2,336 10,675 375 9,744 23,369 574,470 752,470 37,399 25,221 10,755 12,962 101,785 61,468 40,397 53,344 130,509 131,860 905,059 1,060,694 62,260 42,890 14,204 3,620 2,231 2,675 3,412 1,271 816 1,435 403 958 1,694 684 74 10,681 6,388 9,444 8,535 4,032 2,447 3,355 2,189 7,879 19,191 262,372 146,637 48,158 480,882 2,982 2,621 42,249 9,979 “ *2*976 20,480 5,223 179 2,986 15 15,879 3,444 349 5,455 1,230 5,534 4,940 50 1,271 2 50,130 26,034 17,944 18,230 1,078 1,767 6,017 102 ....... 423 23,369 574,470 752,470 37,399 25,221 10,755 s LIABILITIES. Capital......................................................... | 750 Surplus and undivided profits.................. 810 Due to banks.............................................. j 795 Deposits: Demand................................................ 6,345 Time.................................................... 247 Rediscounts and money borrowed........... 140 Circulation outstanding............................. 655 1 Other liabilities.......................................... Total liabilities................................. 9,743 1 Includes trust companies. 2,344 58,148 1,413 44,783 105,789 (2) <■>« 36 12,962 101,785 *Included in individual deposits. 61,468 13,917 89,474 5,794 63.326 4,419 143,742 98,441 58,819 25,049 17,169 17,202j 59,170 104,998 421,121 6,476 16,369 29,155 108,423 1,094 67 5,550 3,221 6,697 63,096 41 **«*7*670 184 88 10.326 335,475 523,865 7,802 6,279j 11,186 2,7351 6,522 3,089; 16,202 $m 40,397 i i , 243 53,344. 130,509 131,860 905,059 1,060,694 * Includes money borrowed. BEPOBT OF FEDEBAL BESEBVE BANK OF SAN FBANCISCO. State............................................................ REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO. 29 E x h i b i t F. Seasonal demandfor loans and prevailing interest rates. Seasonal demand. Arizona..................... California: Imperial Valley. Ban Diego........................ Los Angeles and adjacent counties. San Joaquin Valley.. San Francisco.......... Sacramento Valley.., Northern California.. Idaho: Southern....................... Eastern......................... Northern....................... Nevada................................ Oregon: Coast.............................. Sou thorn....................... Columbia River Valley. Willamette Valley___ Eastern...................... Utah: Central and northern. Balance of State. Washington: Eastern.............. Western............. . Used for— Rate. September, October, November, Cattle business., December. Spring and early fall. . . .............. Alfalfa, dairying, cotton, can taloupes. February to June. Lemons, mercantile................ Continuous........... Dairying, sugar beets, alfalfa, oranges, lemons, walnuts, beans. Spring and late autumn............. Live stock, grain, grapes, peaches, apricots, alfalfa. Highest peak November; local Taxes, mercantile business.... demand uniform. Spring and late summer............. Hops, alfalfa, grain, grapes, small fruit, live stock. Early summer and fall............... Livestock, grain, dairying, lumbering. February to June.............. July, August, September.. February to June.............. Fall of year........................ Alfalfa, live stock, wool, grain.. Live stock, wool, grain............ Live stocK, lumber.................. L ivestock............................... Fall.............................................. August and September............... September to January and spring. August to November.................. Late summer and fall................. Lumber, fish packers............... Agriculture, live stock............ Live stock, grain, lumber, wool, apples. Apples, hops, dairying, grain.. Grain, live stock...................... Spring and fall.... Sugar beets, hay, grain, fruit, live stocK . Live stock................................ January to April., Late summer and fall. Spring and fall............ Grain, live stock...................... Live stock, lumber, fish can neries. 8-10 7-10 5J-8 6-10 5-8 6-7 6-10 6-10 10 10-12 6-8 6-8 6-8 6-8 6-8 8-10 8-10 8-1* 6-8 6-8 E x h i b i t G. Effect upon income of metriber banks by establishing Federal Reserve System. Country bank: Old system— Deposits............................................................................. $100,000 Reserve............................................................................... 15,000 Loanable......................................................................... Of reserve........................................................................... New system— Deposits............................................................................. Reserve.............................................................................. Loanable......................................................................... Reserve city bank: Old system— Deposits........................................................................... . Reserve.............................................................................. Loanable......................................................................... Of reserve........................................................................... New systemDeposits............................................................................. Reserve.............................................................................. 85,000, at 6 per cent — 9,000, at 2 per cent— $5,100 180 - $5,280 100,000 12,000 88,000, at 6 per cent__ 5,280* 100,000 25,000 75,000, at 6 per cent — 12,500, at 2 per cent. . . . 4,500 250 4,750 100,000 15,000 85,000. at 6 per cent......... 5,100 Gain under new system......................................................................................................... Central reserve city bank: Old system— Deposits............................................................................. 100,000 Reserve.............................................................................. 25,000 350 Loanable......................................................................... Loanable......................................................................... New system— Deposits............................................................................. Reserve.......................... .................................................... 75,000, at 6 per cent. 4,500^ 100,000 18,000 82,000, at 6 per cent. 4,920 Gain under new system............. ....................................................................... . 420 Loanable................. ...................................................... 30 BEPOBT OF FEDERAL RESERVE BANK OF SAN FRANCISCO. This takes no account of permission under old system to include 5 per cent redemp tion fund in reserve, and in computing amount against which reserve was required, to deduct national-bank notes from deposits. But to offset this, no account is taken of the fact that under the new system only 5 per cent reserve is required against time deposits. EFFECT UPON INCOME BY INVESTMENT IN CAPITAL OF FEDERAL RESERVE BANK. Loansand investments of member banks Li twelfth district approximate $600,000,000. One-half the subscribed capital of Federal Reserve Bank of San Francisco, called for payment, approximates $4,000,000; that is, two-thirds of 1 per cent of the invest ments. Old system, loans....................................................................................... $100,000, at 6 percent____$6,000 New system................................................................................................ 99,333, at 6 per cent___ 5,960 Two-thirds of 1 per cent...................................................................................... 667 Loss............ 40 Aside from dividends, assuming equal deposits, the gain id income of central reserve city and reserve city banks, as shown in the foregoing, would greatly exceed the loss because of investment in capital of Federal Reserve Bank. Country banks would gain in power to increase loans by reason of reduction of 5 per cent of reserve required against time deposits. In any event, an increase of loans to the extent of two-thirds of 1 per cent would offset the loss of income because of capital investment regardless •of dividends, which will be earned in due time and are cumulative. Exhibit H. By-Laws, F ederal R eserve Bank o f San Francisco. Article I.—Directors. Section 1. Quorum.—A majority of the directors shall constitute a quorum for the transaction of business, but less than a quorum may adjourn from time to time until a quorum is in attendance. Sec. 2. Vacancies.—As soon as practicable after the occurrence of any vacancy in the membership of the board the chairman of the board shall take such steps as may be necessary to cause such vacancy to be filled in the manner provided, by law. Sec. 3. meetings.—There shall be a regular meeting of the board every first and third Tuesday of each mopth at 11.30 o’clock a. m., or, if that day be a holiday, on the first preceding full business day. The chairman of the board may call a special meeting at any time, and shall do so upon the written request of any three directors or of the governor. Notice of regular and special meetings may be given by mail or by telegraph. If given by mail, such notice shall be mailed at least six days before the date of the meeting. If given by telegraph, such notice shall be dispatched at least three days before the date of the meeting. Notice of any meeting may be dis pensed with if each of the directors shall in writing waive such notice. Sec. 4. Powers.—The business of this bank shall be conducted under the supervi sion and control of its board of directors, subject to the supervision vested by law in the Federal Reserve Board. The board of directors shall appoint the officers and fix their compensation. The board may appoint legal counsel for the bank, define his duties, and fix his compensation. Sec. 5. Special committees.—Special business of the bank may be referred from time to time to special committees, which shall exercise such powers as the board may delegate to them. Sec. 6. Order of business.—The board may from time to time make such regulations as to order of business as may seem to it desirable. Article II.—Executive committee. Section 1. How constituted—There shall be an executive committee consisting of the governor, the Federal Reserve Agent, and one or more directors; the member or members of the committee chosen by the board shall serve during the pleasure of the board or for terms fixed by it: Not le3s than three members of the committee shall •constitute a quorum for the transaction of business, and action by the committee shall be upon the vote of a majority of those present at any meeting of its committee. BEPOET OF FEDERAL RESERVE BANK OF SAN FRANCISCO, 31 The committee shall have power to fix the time and place of holding regular or .special meetings and the method of giving notice thereof. Minutes of all meetings of the executive committee shall be kept by the secretary, and such minutes or digests thereof shall be submitted to the members of the board of directors at its next succeeding meeting. Such minutes shall be read to the meeting if required by any member of the board. Sec. 2. Powers.— Subject to the supervision and control of the board of directors, as set forth in Article I, section 4, the executive committee shall have the following powers: (a) To pass upon all commercial paper submitted for discount. ib) To initiate and conduct open-market transactions. (c) To recommend to the board of directors from time to time changes in the dis count rate. (d) To buy and sell securities. (e) To apply for and provide for. the security of such Federal Reserve notes as may, in the judgment of the committee or of the board, be necessary for the general requirements of the bank. (/) To employ or to delegate to officers of the bank authority to employ clerks and other subordinates, and to define their duties and to fix their compensations. (g) To approve bonds furnished by the officers and employees of the bank and to provide for their custody. (h) In general, to conduct the business of the bank, subject to the supervision and control of the board of directors. A r t ic le I I I .— Officers. S e c t i o n 1. The board of directors shall appoint a governor, a deputy governor, a secretary, and a cashier, and shall have power to appoint such other officers as the board may from time to time determine to be necessary and appropriate for the con duct of the business of the bank. The offices of deputy governor, sec retary, and cash ier, or any two of them, may be held by one person, in the discretion of the board. The officers chosen by the board shall hold office during the pleasure of the board. Sec. 2. Federal Reserve Agent.—The Federal Reserve Agent, as chairman of the board, shall preside at meetings thereof. Copies of all reports and statements made to the Federal Reserve Board shall be filed with the Federal Reserve Agent. Sec. 3. Deputy Federal Reserve Agent.—In the absence or disability of the Federal R-eserve Agent his powers shall be exercised and his duties performed by the Deputy Federal Reserve Agent, who may perform such other services as shall be prescribed by the board of directors not inconsistent with his duties as provided by law. Sec. 4.; The governor.—Subject to the supervision and control of the board of direc tors, the governor shall have general charge and control of the business and affairs of the bank and he shall be the chairman of the executive committee. He shall have power to make any and all transfers of securities or other property of the bank which may be authorized to be sold or transferred by the executive committee or by the board. The governor shall have power to prescribe the duties of all subordinate officers an4 agents of the bank where such duties are not specifically prescribed by law or by the board of directors or by the by-laws. The governor may suspend or remove any employee of the bank. Sec. 5. The deputy governor.—In case of the absence or disability of the governor his powers shall be exercised and his duties discharged by the deputy governor, and in case of the absence or disability of the deputy governor the board shall appoint one Qf the Other directors governor pro tempore. The duties of the deputy governor shall otherwise be such as may be prescribed by the board of directors or by the governor. In case the board shall deem that the business of the bank requires the appointment of one or more assistant deputy governors, it shall have authority to appoint such assistant deputy governor or governors and shall prescribe and define his or their duties. S e c . 6. The secretary.—The secretary shall keep the minutes of all meetings of the board and of all committees thereof. "He shall have custody of the seal of the bank, with power to affix same to certificates of stock of the bank, and by authority of the board or the executive committee to such other instruments as may from time to time be required. The board of directors may, in the absence or disability of the secretary, or upon other occasion where in the discretion of the board greater convenience can be attained, appoint a secretary pro tempore or empower one or more officers to affix the seal of the bank to certificates of stock or other instruments. The secretary shall perform such other duties as may from time to time be prescribed by the board of directors, the executive committee, or the governor. 32 REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO. Sec. i. The cashier.—The cashier and at least one other officer designated by the board of directors shall have the joint custody of all moneys, investments, and securi ties of the bank, subject to Buch rules as the board may adopt for their safety* He shall perform such other duties as may be assigned to him from time to time by the executive committee, the board of directors, or the governor. A r t i c l e IV.—Certificates of stock. S e c t i o n 1. Signature.—All certificates of stock, or of payment of or on account o f stock subscriptions, shall be signed by the governor or a deputy governor and the secretary or cashier, or such other officers as may be prescribed *>y the board, and such certificates shall bear the corporate seal. A r t ic le V. S e c tio n 1. Buxines* hours.—The bank shall open for business from 10 o'clock to 3 o’clock on each day except Sundays or days or parts of days established as legal holidays, and on Saturdays from 10 orclock to 12 o’clock. A r t i c l e VI.—Amendments. These by-laws may be amended at any regular meeting of the board by a majority vote of the entire board: Provided, however, That a copy of such amendment shall have been delivered to*each member at least 10 days prior to such meeting. E x h i b i t I. Discount rates. Not ex ceeding 10 days. Regular paper. Over 10 and not exceeding 30 days. Over 30 and not exceeding 60 days. Over 60 and not exceeding 90 days. Percent. Per cent. Per cent. 6 6 Nov. 16, Dec. 2,1914. Dec. 15, — Dec. 31, Jan. 8,1915 Jan. 22,1915.. May 8,1915... June 25,1915*. ? ?4 ? ? ? i Over 30 Not ex and not ceeding 30 exceeding days. 60 days. Commodity paper. Sept. 24,1915»................................................................... Per cert. 5* 6e6 *6 * ? ? 4 4 4 Over 60 and not exceeding 90 days. Over 90 daysand notexceedingS months. Per cent. Per cent.4 Percent. Percent. 5 3$ Trade acceptances.1 4} Not ex ceeding 60 days. Over 00 and not exceeding 90 days. Percent. Per cm . 3 Aug. 5,1915... Over 00 days. 1Rates in effect Nov. 30,1915. BEPOBT OF FEDERAL RESERVE BANK OF SAN FRANCISCO. 33 E x h ib it J . Banks in Twelfth District granted special permits by the Federal Reserve Board to act at trustee, executory administrator, registrar of stocks and bonds. City. State. California. Calexico.............. Los Angeles............ — do___ ....d o ___ Oakland.............. Pleasanton........... ....d o .... Visalia.................. ....d o .... — do___ Fullerton............ ....d o .... ....d o .... San Francisco... Wilmington............. Nevada. Tanopah. Harnsbu; burg............ . Oregon.. Junction City......... .......d o ... ..d o ... M ilto n .................. .do. .do. Ontario___ Eendleton. D o..................... Portland................ Ashland................. Salt Lake City....... .......do. .......do. — do. Utah... Mount Vernon.. Seattle.............. Washington.. ...... do........... Vancouver.............. ___ do. Bellingham......... .....d o . ----- do. Seattle................ Bank. Nature of power granted. First National— Continental Nationa Central National___ First National......... .......do....................... .......do....................... Farmers & Merchant Bank of California, Na tional ssociation.1 Nevada First National First National............. ..... d o ........................ . .......do.......................... Registrar of stocks and bonds. Do. Do. Do. Do. Do. Do. Trustee, executor, administrator, trar of stocks ana bonds. Registrar of stocks &nd bonds. Trustee, executor, administrator. Do. Trustee, executor, administrator, trar of stocks and bonds. Executor, administrator. .do. American National... Trustee, executor, administrator, trar of stocks and bonds. First National___ Do. ..... d o .................. Do. Trustee. .......do.................. trustee, executor, administrator, Deseret National. trar of stocks and bonds. Trustee, executor, administrator. First National... Trustee, executor, administrator, Seattle National. trar of stocks and bonds. Vancouver National.. Do. Bellingham National.. Do. Do. National Bank of Commorce. A regis regis regis regis regis i All powers in branch banks. Registrar of stocks and bonds in California. E x h ib it K . Banks in Twelfth District granted permMon by Federal Reserve Board to accept drafts or bills of exchange up to 100 per cent of capital and surplus. City. Bank. San Francisco........ Do.................... D o.................... D o ................... D o.................... Portland................. Pank of California, National Association................................................. Wells Farso Nevada National.................................................................. First National B a n k ................................................... ........... »............. Crooknr National Bank............................................................................ nglo & 1 ondon Paris National.............................................................. First National Bank................................................................................. A Capital and surplus. 115,000,000 9.500.000 4.500.000 4,000,000 5.500.000 3.500.000 34 BEPOBT OP FEDERAL BESEBVE BANK OF SAN FBANCISCO. E x h ib it L EXCHANGE CHARGES IN TWELFTH DISTRICT. 1. Rates for all points specified in this report are subject to variations in rate due to special arrangements between banks. 2. In general country banks clear their items through their city correspondents without paying any charges for exchange. 3. Country banks, quite generally, make charges for exchange. 4. Banks in this district, quite generally, charge exchange for checks received from further east. 5. Banks in this district do not find it necessary to pay exchange in clearing checker drawn upon points further east. Arizona....................... .......................... _•......................... ...................................... California: San Diego............................................................ .............................................. Los Angeles1..................................................................................................... Francisco..................................................................................................... ............ ............................................................................................ Sacramento California— Outside soutnem........................................................................................ Outside central.......................................................... ................................. Outside northern......................................................................................... Idaho.................................. . ............................................ ...................................... Oregon: Portland.............................................................................................................. Oregon, outside.................................................................................................. Utah: Salt Lake City............................................................. ...................................... Utah, outside..................................................................................................... Washington: Spokane.............................................................................................................. Washington, outside.. . . ....... . .......................................................................... Checks bearing eastern indorse ments (per 100). Checks indorsed by Pacific coast points (per 100).. Cents25. Cents.25 10 10 5 5 ( , ) 10 (,) 5 10 10 10 15 15 5 5 10 10 10 10 10 10 10 10 8 15 s 12J *12 *1 h 2h 10 <15 *5-10 8 12$ s 12| 1 Los Angeles makes no charge for checks drawn by railway and steamship companies, fruit and nut shippers, and trait and meat packers. 2 No uniform rates, each bank entering into special agreement with eastern correspondents for collection of chccks on Pacific coast. * And up. E x h ib it M. [In thousands only (000 omitted). Classification of banks by total resources.] Items. Capital, surplus, and undivided profits___ Demand deposits......... Time deposits............... Money borrowed.......... Loans and discounts.. . Bonds, securities, e tc... Loans eligible for re discount with Fed eral Reserve B an k.. . Drafts or bills of ex change incident to the importation or exportation of goods accepted under sec tion 13 Federal Re serve Act................... Liabilities of officers and directors: Direct..................... Indirect................. Interest on time de posits: Highest *................. Average *.............. $100,001 to 200 000 $200,001 to $300,000. $ , . To $100,000. $300,001 to $500,000. $500,001 to $2,500,000. $2,500,001 to $20,000,001 and over. $20,000,000. 559 57 36 640 52 $2,124 5,302 1,443 164 5,530 711 $3,897 12,223 2,633 241 11,177 1,903 $8,075 23,720 6,473 774: 23,784 4,118 $37,089 107,741 29,652 2,509 111,314 4,012 $45,659 143,776 46,696 400 151,362 32,030 ‘i^oii* 18,968 154 1,018 1,991 2,735 19,783 28,524 30,789 12 41 4,817 1,936 5,606 2,500 4* 4* 384 158 604 192 j 4* 4-7Ari i Highest individual rate recorded. 1,036 429 2 Average of maximum rates recorded. Total for district. $152,887 420,752 108,413 4,124 440,821 61,794 $55,657 127,431 21,459 I 84,994 103 1,210 1,673 13,797 BEPOET OP FEDERAL BESEEVE BANK OF BAN FBANCISCO. Principal items in reports of conditions to Comptroller of Currency, Nov. 10, 1915, by member banks in Twelfth District, and abstract of exchange, losses, and earning accountsfor S years. C71 CO Principal items in reports of conditions to Comptroller of Currency, Nov. 1 0 ,1 9 1 5 , by member banks in Twelfth district, and abstract of exchange, tosses, emc? earning accounts for S years—Continued. Data covering 3 years. Abstract of banks* exchan cp and collec tion account: Credit...................... Debit...................... $100,001 to $200,000. To $100,000. 1912 1913 1914 1 2 2 1912 1913 1200.001 to $300,000. 1914 1912 1914 1912 1913 1914 1912 1913 1914 1912 1913 1914 1912 1913 1914 24 24 24 85 16 87 16 83 17 188 12 185 10 180 15 525 144 552 162 522 2*261 1,996 1 454 3,111 2,879 2,295 163 2,023 1,761 1,106 2,196 1,961 1,311 25 20 20 24 24 24 69 71 66 176 175 165 381 390 359 1 9 8 10 15 50 58 37 37 85 99 61 57 35 91 152 568 565 545 704 902 1,039 130 61 58 44 99 162 583 615 603 741 939 1,124| 229 5*55 1,011 1,661 2,277 2,969 2 2 1 3 10 7 8 50 Total losses.. . . 2j 1 3 10 7 8 52 1913 28 8 2 Net or surplus earnings — 1912 Total for district. 30 10 1 Total net earnings and proHts, dividends paid, and surplus earnings: Earnings and prof its after deduc tion of expenses and losses............ Dividend paid....... 1914 $20,000,001 and over. 26 1 Losses sustained by banl'S from loans to borrowers other than ban'<s: Nondepositaries— Other loans and discounts............. Difference............ 1913 12.500,001 to $20,003,000. 1500,001 to $2,500,000. 1300,001 to $500,000. 2 238 348 915 918 984 140 142 161 235 296 415 869 1,500 2,042 2,673 235 1 2 3 91 52 107 74 114 68 328 190 336 207 321 197 686 299 616 506 642 3,432 3,462 3,278 4,465 3,653 3,869 3,752 3,853 3,332 12,756 12,107 11,559 439 2,303 2,580 2,375 3,605 |3,569 2,776 2,845 2,950 3,015 9,300 9,887 8,870 2 3 39 33 46 138 129 124 387 190 203 1,123 o 882 903 860 84 1,033^1 907 903 317 3,45d| 222 2,689 BEPOBT OP PEDEBAL BESEBVE BANK OP SAN FBANCISCO, Items.