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

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6
6
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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.