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FIFTH ANNUAL REPORT OF THE FEDERAL RESERVE BOARD COVERING OPERATIONS FOR THE YEAR 1918 WASHINGTON GOVERNlffiNT PRINTING OFFICE 1919 TABLE OF CONTENTS. Page. PART I.—Report of t h e Federal Reserve Board, w i t h exhibits 1-266 PART II.—Report of F e d e r a l Reserve Agents to t h e F e d e r a l Reserve Board 267-760 PART III.—Recommendations of the F e d e r a l Advisory Council to t h e F e d e r a l Reserve Board for years 1915-1918 761-870 P A R T I. T e x t of r e p o r t : Fiscal agency operations Rediscount operations and sales between F e d e r a l Reserve B a n k s Discount policy of t h e F e d e r a l Reserve Board Changes in discount r a t e s Movement of principal assets a n d liabilities of all F e d e r a l Reserve Banks Reserve position of t h e F e d e r a l Reserve B a n k s Effect of w a r financing upon t h e F e d e r a l Reserve B a n k s Acceptances Membership of S t a t e institutions R a t e s of earnings from investments of t h e Federal Reserve B a n k s E a r n i n g s and expenses of t h e F e d e r a l Reserve B a n k s Banking q u a r t e r s Gold settlement fund Proposed international gold fund 1 Export of coin, bullion, and currency Regulation and control of foreign exchange Division of Foreign Exchange Foreign branches of American b a n k s Division of Analysis and Research Capital Issues Committee Law Division F i d u c i a r y powers g r a n t e d to national b a n k s Reserve and central reserve cities Branches of F e d e r a l Reserve B a n k s Check clearing and collection Federal Reserve bank notes Amendments to the F e d e r a l Reserve Act Pending Meetings of the F e d e r a l Advisory Council Organization, staff, and expenditures of the F e d e r a l Reserve B o a r d Conclusion 1 3 4 5 8 13 14 18 24 27 28 30 32 35 35 39 46 59 62 64 66 71 72 72 74 77 79 81 84 84 85 EXHIBITS. Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit A—Discount r a t e s B—Federal Reserve notes C—Statement of condition of Federal Reserve B a n k s D—Investment operations of F e d e r a l Reserve B a n k s E—Gold settlement fund F—Clearing operations 91 94 117 154 195 204 in CONTENTS. IV Page. Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit G—Certificates of indebtedness H—Earnings and expenses of the Federal Reserve Banks I—Receipts and disbursements of the Federal Reserve Board J—State banks and trust companies admitted to membership K—Foreign branches authorized L—Fiduciary powers granted to national banks M—Banks granted authority to accept up to 100 per cent of capital and surplus N—Personnel and salaries: Salaries of officers and employees of Federal Reserve Banks Salaries of officers and employees of Federal Reserve Board Salaries of bank examiners O—Directory of the Federal Reserve Board and Federal Reserve Banks P—Federal Advisory Council . _ Q—Exports of coin, bullion, and currency R—Amendments to the Federal Reserve Act 207 209 216 218 234 235 240 244 247 250 253 259 260 261 CHABTS. Federal Reserve notes in circulation and per cent of gold cover therefor__ Movement of earning assets of all Federal Reserve Banks Deposit and note liabilities, also cash reserves of all Federal Reserve Banks Total cash reserves and excess reserves of all Federal Reserve Banks War paper and total bills discounted by all Federal Reserve Banks and The Federal Reserve Banks of New York during 1918 Operations through the gold settlement fund PART 101 123 126 127 169 198 II. Reports of Federal Reserve agents to the Federal Reserve Board 267-760 District No. 1—Boston 269-515 District No. 2—New York 317-398 District No. 3—Philadelphia 399-450 District No. 4—Cleveland451-481 District No. 5—Richmond 483-509 District No. 6—Atlanta 1 511-538 District No. 7—Chicago 539-580 District No. 8—St. Louis 581-622 District No. 9—Minneapolis __-.___ 623-651 District No. 10—Kansas City 653-686 District No. 11—Dallas. 687-728 District No. 12—San Francisco 729-760 PART III. Recommendations of the Federal Advisory Council 19151916. 1917. 1918, 761-870 761-789 790-823 824-851 852-870 PART I. REPORT OF THE FEDERAL RESERVE BOARD, WITH EXHIBITS. V AMUAL REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BOARD, Washington, January 31,1919. SIR : I n compliance with the requirements of section 10 of the Federal Reserve Act, the Federal Reserve Board submits herewith its fifth annual report covering operations for the calendar year ended December 31, 1918. F I S C A L AGENCY O P E R A T I O N S . W a r financing has been the dominant feature of the year. Government requirements have been larger than ever, and the vast operations of the Treasury have been reflected in the work and activities of the Federal Reserve Banks. These banks have handled all details connected with the sales and allotments of Treasury certificates of indebtedness among member and nonmember banks of their respective districts, have received subscriptions to Liberty bond issues, collected all bond and certificate payments and redeposited the funds with depositary banks, withdrawing them as required by the Treasury, and have made deliveries of Government bonds and Treasury certificates to subscribers. They have also attended to the exchange and conversion of bonds for member and nonmember banks and for the public. The Secretary of the Treasury has continued the policy of using the Federal Reserve Banks as agencies for negotiating all Government loans, and the work of the banks in performing this function has been even heavier than before. Under the general direction of the Secretary of the Treasur}^ the work of the Liberty loan committees in the selling campaigns throughout the various districts has been supervised by the governors and other officers of the Federal Reserve Banks. By means of interdistrict settlements through the gold settlement fund, maintained at Washington by the Federal Reserve Board for the banks, it has been possible for the Treasury to leave funds with designated depositary banks throughout the country until actually required, transfers being made by telegraph to Federal Reserve Banks in cities where the Government's disbursements are made. These vast operations have been conducted without any strain upon or disturbance of the money market. 100823°—19 1 1 2 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. A total of $11,117,936,400 of bonds of the third and fourth Liberty loans, and $10,660,743,000 of Treasury certificates of indebtedness issued in anticipation of these loans, of the forthcoming fifth loan, and of 1918 and 1919 tax receipts have been subscribed, allotted and collected through the 12 Federal Reserve Banks. A detailed statement of these operations is given in the subjoined table: Allotments of Liberty bonds and Treasury certificates from Jan. 1 to Dec. 31, 1918. Liberty bonds. Third loan. F o u r t h loan. $632,124,850 $354,537,250 2,044,931,750 1,115,243,650 598,763,650 361,963,500 701,909,800 405,051,150 352,685,200 186,259,050 218,086,550 137,649,450 989,209,000 608,878,600 295,298,800 199,835,900 ! 242,046,050 180,892,100 295,951,450 204,092,800 146,080,200 116,220,650 462,250,000 287,975,000 Philadelphia Richmond Atlanta Chicago St. Louis K a n s a s City Dallas San Francisco 4,158,599,100 Total 6,959,337,300 Total allotments. $986,662,100 3,160,175,400 960,727,150 1,106,960,950 538,944,250 355,736,000 1,578,087,600 495,134,700 422,938,150 500,044,250 262,300,850 750,225,000 11,117,936,400 Certif i c a t e s of i n d e b t e dness. I n a n t i c i i>ation of— Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis K a n s a s City Dallas San Francisco Total Fifth loan. Tax payments. Total Treasu r y certificate allotments. Third loan. F o u r t h loan. $214,417,000 1,255,308,000 196,500,000 233,033,500 75,829,500 79,573,000 325,355,000 133,584,500 89,350,000 128,524,500 90,925,000 172,790,500 $381,152,500 1,680,989,000 316,020,000 440,569,000 117,983,500 114,857,000 663,204,000 186,963,000 127,560,000 176,866,000 83,320,000 305,020,000 $92,911,500 421,947,000 84,537,500 102,700,000 38,515,500 27,949,500 180,425,000 45,551,000 46,765,000 41,893,500 16,196,500 82,400,000 $163,092,500 733,016,000 123,852,000 312,690,500 35,070,000 26,350,000 258,625,500 40,691,500 21,704,500 31,070,500 39,838,000 i 98,255,500 $851,573,500 4,091,260,000 720,909,500 1,093,993,000 267,398,500 248,729,500 1,427,609,500 406,790,000 285,379,500 378,354,500 230,279,500 658,466,000 3,000,190,500 4,594,504,000 1,181,792,000 2 1,834,256,500 10,660,743,000 1 2 Exclusive of $251,030 of the Nov. 30,1917, issue allotted on Jan. 23,1918. Includes 76 millions 4 per cent certificates of the Aug. 2 J issue received in payment for the 4 | per cent issue of Nov. 7. NOTE.—Above figures are exclusive of $104,707,000 of 2 per cent 1-year certificates sold to Federal Reserve Banks to secure bank-notecirculation, and of special temporary certificates sold to Federal Reserve Banks, none of which are now outstanding. Including operations in 1917, certificates of indebtedness and Liberty bonds subscribed for and collected through the Federal Reserve Banks have amounted to $31,457,310,400 composed of $14,530,708,000 of certificates and $16,926,602,400 of Liberty bonds. The Treasury balances carried with the Federal Reserve Banks and the member banks in the various districts have been subject to wide fluctuations, owing mainly to the constantly changing requirements of the Treasury, and partly to the seasonal character of col- A N N U A L REPORT OF T H E FEDERAL, RESERVE BOARD. 3 lections of internal-revenue taxes made for the Treasury's account. The average of the Friday night balances standing to the credit of thb Treasury on the books of the 12 Federal Reserve Banks for the year were as follows: F e d e r a l Reserve B a n k : Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis K a n s a s City Dallas San Francisco $13, 431, 000 19, 206, 000 10, 570, 000 17, 324, 000 6, 409,' 000 8, 010, 000 16, 034, 000 10, 532, 000 7, 830, 000 9, 668, 000 7, 060, 000 12,100, 000 REDISCOUNT OPERATIONS AND SALES B E T W E E N FEDERAL, RESERVE B A N K S . Section 11 of the Federal reserve act provides that the Federal Reserve Board may permit or, on the affirmative vote of at least five members of the Federal Reserve Board, require Federal Reserve Banks to rediscount the discounted paper of other Federal Reserve Banks at rates of interest to be fixed by the Federal Reserve Board. Transactions of this character between the Federal Reserve Banks have been unusually heavy during the past year, due to three causes named in the order of their importance: First, transfers of Government funds; second, joint purchases of bankers' acceptances; and third, seasonal requirements incident to crop moving. The Board's policy has been to equalize, in an approximate degree, the reserves of the 12 Federal Reserve Banks with the purpose of avoiding undue variations in their reserve position. Discount transactions between the banks have not, as a rule, been negotiated by the banks themselves, but through the medium of the Federal Reserve Board, instructions being given by telegraph, and transfers incident to the operations were effected in the same way. Open-market purchases of bankers' acceptances have shown a very substantial growth. Investments in paper of this class reached a maximum of $388,383,000 on October 25. The principal market for acceptances is New York, although an open market for them has been established in Boston under the auspices of the Federal Reserve Bank there. The Federal Reserve Banks of other districts have found it more convenient to participate in the purchases of acceptances made by the Federal Reserve Bank of New York, and some of the banks have undertaken to take care of the acceptances originating in their own districts which are sold in the New York market. Voluntary transactions between the banks in acceptances A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. have been permitted without the indorsement of the Federal Reserve Bank selling them, but in all cases where the Board has required rediscount operations the indorsement of the bank disposing of the paper has been given. Rediscounting because of seasonal or crop-moving requirements has-been confined to five banks—the Federal Reserve Banks of Kansas City, Minneapolis, Dallas, Atlanta, and Richmond—but it is • probable that none of these banks would have had occasion to rediscount except for the fact that they were discounting heavily for member banks paper secured by Government obligations. Transactions in paper of this class have been so heavy and transfers of balances from one district to another so constant that the process of rediscounting between banks has been continuous through the greater part of the year. All of the banks have disposed of paper except the Federal Reserve Banks of Cleveland and San Francisco. Rediscount operations between the Federal Reserve Banks, including voluntary purchases of bankers' acceptances, during the year, have aggregated $660,638,000, as shown in detail in the following table : Interdistrict movement of bills discounted or purchased by Federal Banks during the period from Jan. 1 to Dec. 31, 1918. Reserve [In thousands of dollars.] R e d i s c o u n t s a n d sales b e t w e e n Federal Reserve B a n k s . Acceptances p u r c h a s e d for a c c o u n t of other Federal Reserve Banks. Direct p u r c h a s e s of acceptances in other Federal Reserve districts. Interdistrict m o v e m e n t of discounted and purchased paper. Federal Reserve Bank. DisExcess Redis- counted ofredisc o u n t e d or p u r - c o u n t s or sold chased and by— by— sales. Boston New York Cleveland Richmond Atlanta Chicago St Louis Minneapolis K a n s a s City Dallas -San F r a n c i s c o Total 120,297 180,901 50,149 69,063 80,293 9, 984 12, 500 24,996 8,530 103,925 Excess Amount of dis- A m o u n t purcounts chased purand for acchased purcount by— chases. of— 19,898 100,399 67,681 113,220 66,365 16,216 137,115 137,115 331 68, 732 2, 514 77,779 190,414 200, 398 9,051 3,449 99,462 74,466 25,047 16,517 8,242 24,534 95,683 24,534 660,638 660,638 459,262 459,262 1,907 174,860 Market Excess Excess in Purove- movew h i c h chasing m ment ment purb a n k . from— to— chased. 2,057 41,411 18, 949 65,628 6,384 111 047 1,283 68,512 174,860 92,046 329,491 56,562 207,534 68,732 77,722 57 1,093 174,860 8,503 21,397 4,791 3,685 2,770 2,057 679 265 94,135 195,192 82,907 27,564 9§,046 43,468 43,468 662,805 662,805 DISCOUNT P O L I C Y . The discount policy of the Board has necessarily been coordinated throughout the year with Treasury requirements and policies, which in turn have been governed by demands made upon the Treasury for war purposes. All lines of business activity have been subordinated to war necessities; more than two million men have been under arms ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. 5 in France, another million at stations and training camps in this country, half a million more were in the Navy, making more than three and a half million men actually under arms; and it is estimated that the labor of fifteen million more has been devoted to the production, manufacture, and distribution of commodities and material required in the conduct of the war. The Government has^een the principal purchaser and consumer of goods, as well as the chief employer of labor, and the financing of the Government therefore has been of paramount importance from a commercial as well as a patriotic point of view. The rates of interest borne by the Treasury certificates of indebtedness and by the Liberty loan bonds have been determined by the Secretary of the Treasury within the limits fixed by Congress, and the Board has felt it to be its duty to adjust its discount rates in such manner as to assist the distribution of the various Treasury issues. The Board has therefore continued the policy, as explained in the last annual report, of giving a preferential rate of discount to notes made or offered by member banks secured by the Government's war obligations, and has continued to permit the Federal Reserve Banks to discount for nonmember banks, upon the indorsement of a member bank, notes secured in this manner. The coupon rate of the Liberty loan bonds of the third and fourth issues is 4J per cent, against 3J per cent for the first loan and 4 per cent for the second, and the interest rate on certificates of indebtedness was advanced during the year to 4-J- per cent, against rates of 3 to 4 per cent during 1917. The Board thereupon approved an appreciable increase in discount rates at all Federal Reserve Banks, the principal changes having beer made on April 8, shortly before subscriptions closed to the third Liberty loan. While a preferential has been maintained in favor of paper secured by Government obligations, corresponding changes have been made in the rates for commercial paper of various maturities, all of which are shown in the following tables: Changes in rates of discount for 15-day commercial notes. paper, including collateral Effective— Federal Reserve Bank. Boston N e w Yor;: Philadelphia Cleveland Richmond . Atlanta Chicago S t . Louis K a n s a s City Dallas San Francisco J a n . 1, 1918. 4 3\ 4 4 4 4 4 4 4 4 4 4 A p r . 3, 1918. A p r . 8, 1918. M a y 20, A u g . 29, S e p t . 3, 1918. 1918. 1918. S e n t . 5, S e p t . 10, D e c . 30, 1918. 1918. 1918. 41 4 4 4| 4i 4| ! U 4| 6 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. Changes in rates of discount on 15-day paper, secured by United States war obligations, including collateral notes. EffectiveFederal Reserve Bank. J a n . 1, 1918. Boston Now York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis K a n s a s City Dallas San Francisco • 3'; 31 3* 31 31 31 31 31 31 31 31 3i • # A p r . 3, 1918. A p r . 8, 1918. A p r . 15, 1918. M a y 20, 1918. A u g . 29, 1918. 4 4 4 4 4 4 4 4 4 4 l H l *t 4 4 4i 1 Four per cent rate on paper secured by fourth Liberty bonds when taken by rediscounting bank at rate not exceeding coupon rate. Changes in discount rates on paper maturing within 16 to 90 days, secured by United States war obligations. Effective- Effective— Federal Reserve Bank. J a n , l , A p r . 3, A p r . 8, A p r . 15, 1918. 1918. 1918. 1918. Philadelphia Cleveland Richmond Atlanta 4 4 4 4 4 4 Federal Reserve Bank. J a n . 1, 1918. 4 4 4 4 4 4 Chicago St. L o u i s Minneapolis K a n s a s City Dallas San F r a n c i s c o . . . 41 41 4i 41 41 41 A p r . 3, A p r . 8, A p r . 15, 1918. 1918. 1918. 41 41 41 41 41 4:1 Rates on paper secured by fourth Liberty bonds when taken by rediscounting bank at rate not exceeding coupon rate: 4 per cent, Boston, effective Oct. 1; Kansas City, Oct. 1; Chicago, Oct. 2; Atlanta, Oct7; St. Louis, Oct. 8; Richmond, Oct. 19. Changes in discount rates on commercial paper maturing within 16 to 60 days. EffectiveFederal Reserve Bank. J a n . 1, 1918. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 5 4-i Ah 4\ 41 41 i\ 4-i 41 41 4h U Apr. 3, 1918. A p r 8, 1918. A p r . 15, 1918. M a y 20, 1918. A u g . 29, 1918. S e p t . 20, 1918. D e c . 30, 1918. 41 42 4| 4f 41 41 41 41 41 5 4.3. 45 41 41 5 51 5 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. Changes in discount rates on commercial paper maturing ivithin 7 61 to 90 days. EffectiveFederal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago S t . Louis Minneapolis K a n s a s City Dallas S a n Francisco Changes in A p r . 3, 1918. J a n . 1, 1918. 5 41 41 41 41 4i 5 A p r . 8, 1918. A p r . 15, M a y 20, J u l y 15, Am?. 29, Sept. 20, D e c . 30, 1918. 1918. 1918. 1918. 1918. 1918. 4| 4| 4f 4f 41 4f 5 4| 4f 4| 5 41 41 41 discount 4f 5 5| 5 5 4| rates on agricultural and live-stock paper maturing within 91 to 180 days. Effective— Federal Reserve Bank. J a n . 1, 1918. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis 5 5 5 5 41 5 51 51 51 5 5 51 Kansas City Dallas S a n Francisco Changes in discount A p r . 8, 1918. A p r . 15, 1918. M a y 20, 1918. 5i 5 D e c . 30, 1918. 5 5i 51 5i rates in trade acceptances maturing within 1 to 60 days. EffectiveF e d e r a l Reserve B a n k . Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas S a n Francisco J a n . 1, 1918. . . . . . 1 4 4 4 4 4 4 31 4 31 4 31 4 A p r . 3, 1918. A p r . 8, 1918. A p r . 15, 1918. M a y 20, 1918. A u g . 29, 1918. Dec. 30, 1918. 41 41 41 41 41 41 41 41 41 41 !4| 4f 41 41 4-1 ! 43- * 41 per cent for trade acceptances maturing within 15 days. NOTE.—In case the 60-day trade acceptance rate is higher than the 15-day discount rate, trade acceptances maturing within 15 days will be taken at t h e lower rate. 8 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Changes in discount rates on trade acceptances maturing within 61 to 90 days. Effective— Federal Reserve Bank. Boston New York Philadelphia Cleveland. Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Jan. 1, 1918. 4 4 4 ^ i Apr. 3, 1918. Apr. 8, 1918. Apr. 15, 1918. May 20, 1918. Aug. 29, 1918. Dec. 30, 1918. 4i ^4i 4* 4* 4* 4* 4* 4* 4J 4| 4 4 4 4 4 4 4 4 4 4 41 4* 4f 4 4| Changes in open-market rates on bankers' acceptances maturing within 3 months. EffectiveFederal Reserve Bank. Jan. 1, 1918. New York 2 Philadelphia Cleveland Richmond Atlanta " Minneapolis • Dallas 3-5 3-4* 3-4* 3-4* 3-4* 3-4* 3-5 3-4* 3-5 3-4* 3-4* 3-4* Apr. 3, 1918.1 4 Apr. 8, 1918.1 Apr. 15, 1918.1 4 4 4 4 4 4 4 4 4 4 4 1 Minimum rate. Rates for discounted bankers' acceptances maturing within 15 days, 4 per cent; within 16 to 60 days, 4i per cent; and within 61 to 90 days, 4* per cent. 2 M O V E M E N T OF P R I N C I P A L ASSETS A N D L I A B I L I T I E S OF F E D E R A L RESERVE B A N K S D U R I N G T H E CALENDAR YEAR 1 9 1 8 . Owing to the issue during the year of Government obligations greatly in excess of the estimated normal annual savings of the country, there has been a marked increase in the loans and deposits of member and nonmember banks, which is reflected in the net total of bills discounted and bought by the Federal Eeserve Banks, in their net deposits, and in their outstanding issues of Federal Eeserve notes: and as a result of the Board's policy of giving a preferential rate of discount on paper secured by United States bonds and Treasury certificates, the Federal Eeserve Banks' holdings of paper secured by war obligations of the Government have increased out of all proportion to their commercial paper holdings. The whole situation is depicted in the following table, which shows the changes, week by week, throughout the year of loans, reserves, note issues and deposits: Movement of principal assets and liabilities of all Federal Reserve Banks during the calendar year 1918. [In t h o u s a n d s of dollars.] 10 9 Biscounted paper, secured Government war obligations. Other discounted paper. Bills bought i n open market. T o t a l bills discounted and bought. Per cent (lto4). Total cash reserves. Net deposits. Federal Reserve notes in actual circulation. R a t i o of cash Federal reserves Reserve to net Bank deposit a n d | notes in Federal circulaReserve tion, n e t note liability. liabilities combined. 1918. Jan 4 11 18 25 Feb. 1 8 15 21 Mar. 1 8 15 22 28-29 Apr. 5 12 19 26 May 3 . . . 10 17 24 31 June 7 14 21 28 July 5 12 19 26 285,919 277,014 300,268 312,520 305,664 269,302 249,603 263,905 249,195 264,501 257,621 282,962 301,451 304,075 465,625 564,724 642,429 606,630 612,324 526,163 600,499 562,993 627,025 653,863 544,193 434,509 563,496 606,599 601,403 673,231 339,894 293,651 303,220 315,142 301,114 255,819 252,313 245,629 253,330 255,839 259,863 260,157 281,777 269,808 247,182 243,321 259,314 266,812 326,717 316,102 322,800 334,364 357,467 362,168 387,077 434,666 513,286 553,283 601,943 628,920 271,338 258,710 257,804 273,912 289,805 280,705 287,263 296,170 299,213 317,952 323,248 328,880 304,065 326,503 318,857 308,277 302,844 297,029 286,036 279,886 278,221 256,373 248,542 242,923 232,472 216,848 211,947 218,464 205,932 205,274 .897,151 T29,375 861,292 901,574 896,583 805,826 789,179 805,704 801,738 838,292 840,732 871,999 887,293 900,386 1,031,664 1,116,322 1,204,587 1,170,471 1,225,077 1,122,151 1,201,520 1,153,730 1,233,034 1,258,954 1,163,742 1,086,023 1,288,729 1,378,346 1,409,278 1,507,425 31.9 33.4 34.9 34.7 34.1 33.4 31.6 32.8 31.1 31.6 30.6 32.4 34.0 33.8 45.1 50.6 53.3 51.8 50.0 46.9 50.0 48.8 50.9 51.9 46.8 40.0 43.7 44.0 42.7 44.7 1,733,030 1,748,031 1,784,307 1,782,759 1,775,457 1,813,094 1,818,736 1,832,524 1,837,773 1,847,883 1,852,193 1,862,372 1,874,063 1,877,433 1,894,995 1,898,307 1,890,945 1,919,983 1,942,500 1,952,712 1,956,056 1,975,709 1,977,724 2,005,263 1,981,111 2,006,199 2,015,163 2,015,984 2,031,095 2,029,329 1,446,228 1,444,904 1,496,386 1,492,878 1,488,036 1,502,853 1,403,634 1,462,627 1,439,887 1,472,439 1,464,519 1,505,774 1,535,367 1,529,364 1,533,827 1,502,246 1,556,303 1,520,957 1,651,324 1,524,453 1,557,618 1,586,608 1,576,364 1,588,771 1,445,403 1,529,819 1,473,927 1,553,664 1,566,680 1,622,870 1,251,205 1,242,199 1,238,797 1,234,934 1,236,101 1,261,219 1,281,045 1,314,581 1,351,091 1,383,990 1,406,228 1,429,509 1,452,838 1.479,920 1,499,377 1,514,287 1,526,232 1,556,680 1,569,618 1,569,445 1,578,621 1,600.968 1,639,579 1,651,500 1,677,951 1,722,216 1,791,569 1,813,425 1,829; 045 1,870,835 64.2 65.1 65.2 65.4 65.2 65.6 67.7 66.0 65.8 64.7 64.5 63.4 62.7 62.4 62.5 62.9 61.3 62.4 60.3 63.1 62.4 62.0 61.5 61.9 63.4 61.7 61.7 59.9 59.8 58.1 8,000 8,000 8,000 8,000 8,000 8,000 7,999 7,999 7,999 8,000 8,000 7,978 7,978 7,860 8,000 7,895 7,895 7,980 7,878 7,878 7,864 8,324 19,580 0,001 9,945 10,390 10,335 10,600 11,000 11,084 QO Movement of principal assets and liabilities of all Federal Reserve Banks during the calendar year 1918—Continued. [In thousands of dollars.] 1 Discounted paper, secured by Govern- , ment war obligations. 2 Other discounted paper. 3 Bills bought in open market. 4 T o t a l bills discounted and bougnt. 5 Per cent (lto4). 1918. Aug. Sept. Oct. Nov. Dec. 2 9 16 23 30 6 13 20 27 4 10 18 25 1 8 15 22 29 6 13 20 27 685,921 761,576 752,115 853,508 896,228 1,007,366 1,071,304 1,146,357 1,221,533 1,251,787 1,304,383 1,262,757 1,092,417 1,252,904 1,316,967 1,358,416 1,281,245 1,412,511 1,467,322 1,483,849 1,299,524' 1,400,371 584,998 570,897 533,253 540,247 531,967 534,608 541,943 513,789 491,897 454,419 450,086 425,799 453,747 493,049 480,271 439,392 428,190 402,684 396,462 365,614 306,778 302,567 209,185 208,557 212,204 236,566 232,603 233,766 239,750 250,032 288,391 310,817 338,620 370,136 398,623 377,072 374,522 377,877 , 368,784 1 375,341 371,406 366,594 1 340,765 303,673 1,480,104 1,541,030 1,497,572 1,630,321 1,660,798 1,775,740 1,852,997 1,910,178 2,001,821 2,017,023 2,093,089 2,058,692 1,944,787 2,123,025 2,171,760 , 2,175,685 2,078,219 2,190,536 I 2,235,190 ; 2,216,057 1,947,067 2,006,611 46.3 49.4 50.2 52.4 54.0 56.7 57.8 60.0 61.0 62.1 62.3 61.3 56.2 59.0 60.6 62.4 61.7 64.5 65.6 67.0 66.7 69.8 6 Total cash reserves. 2,034,918 2,044,523 2,045,523 2,055,266 2,066,962 2,070,494 2,077,732 2,076,039 2,072,176 2,077,371 2,083,358 2,087,685 2,098,169 2,105,685 2,100,839 2,109,816 2,116,257 2,120,371 2,121,367 2,134,263 2,133,624 2,146,219 7 Net deposits. 1,558,839 1,576,322 1,512,507 1,594,068 •1,572,898 1,601,650 1,622,165 1,629,264 1,667,109 1,606,262 1,638,159 1,580,802 1,723,902 1,663,377 1,661,521 1,665,677 1,632,772 1,668,283 1,704,351 1,672,726 1,549,750 1,552,892 8 9 Federal Reserve notes in actual circulation. R a t i o of cash reserves to net deposit a n d Federal Reserve note liabilities combined. 1,906,465 1,955,276 1,985,419 2,032,837 2,092,708 2,180,679 2,245,429 2,295,031 2,349,326 2,431,004 2,478,378 2,502,488 2,507,912 2,515,504 2,558,196 2,562,517 2,555,215 2,568,676 2,584,523 2,604,580 2,663,701 2,685,244 10 58.7 57.9 58.5 56.7 56.4 54.7 53.7 52.9 51.6 51.5 50.6 51.1 49.6 50.4 49.8 49.9 50.5 50.0 49.5 49.9 50.6 50.6 Federal Reserve Bank notes in circulation, n e t liability. o W H 11,479 13,716 15,167 16,864 20,687 23,964 27,672 33,208 35,819 40,305 52,031 55,666 58,859 63,338 68,864 72,930 80,504 86,003 92,799 102,202 111,906 117,122 O H w o a % W O ANNUAL. REPORT OE T H E FEDERAL RESERVE BOARD. 11 I t will be noted that of the total of $897,151,000 bills discounted and bought, as shown by the statement of January 4, 1918, $285,919,000, or 31.9 per cent, consisted of paper secured by Government war obligations, the balance being other notes and bills rediscounted for member banks $339,894,000, and bills and acceptances purchased in the open market $271,338,000. While the total of paper secured by Government war obligations shows occasional temporary reductions brought about by payments of Treasury certificates, the general trend has been steadily upward, the total of such paper held by the Federal Eeserve Banks on December 27, being $1,400,371,000. As to the proportion of paper held by the Federal Eeserve Banks secured by Government war obligations, it will be noted that beginning with 31.9 per cent on January 4, 1918, there were unimportant variations until March 15, when the minimum for the year was reached, 30.6 per cent, after which there was an almost constant increase until on December 27, 69.8 per cent of the paper held by the Federal Reserve Banks was secured by Government obligations. All other discounts carried at the close of the year amounted to $302,567,000, as compared with $339,894,000 on January 4. During the early part of the year these holdings declined to less than $250,000,000. During the summer months, owing, no doubt, to seasonal loan demands, there were considerable increases, the maximum holdings of $628,920,000 occurring about the end of July. Of these a reduced proportion was composed of member banks' collateral notes secured by eligible paper. Of this class of paper the banks carried a total of $21,616,000 on December 27, 1918, compared with $61,110,000 at the beginning of the year. Agricultural paper of all maturities held on the last Friday in 1918 aggregated $29,384,000, as against $7,901,000 on the first Friday in the year. The amount of live-stock paper increased from $8,601,000 on January 4, 1918, to $27,334,000 on December 27, 1918. Maximum holdings of all three classes of paper were reported about the end of July. Holdings of agricultural and live-stock paper are concentrated mainly at the Kansas City, Dallas, and Minneapolis banks. But little change is shown in the holdings of discounted trade acceptances, the end of the year figures, $15,986,000. exceeding only by about $1,217,000 the figures reported at the beginning of the year. These acceptances were based mainly on domestic trade transactions, while acceptances covering foreign trade operations figured somewhat more prominently among the open-market purchases of the banks. Of these purchases, by far the larger part is made up of bankers' acceptances, the holdings of which show an increase for the year from 12 A N N U A L KEPORT OF T H E FEDERAL RESERVE BOARD. creased during the year from $82,867,000 to $166,493,000, the amount of bankers' foreign acceptances decreased from $180,609,000 at the beginning of the year to $129,162,000 toward its close. Dollar exchange bills on hand aggregated $1,850,000 on January 4 as against $796,000 at the close of the year, holdings of purchased foreign trade acceptances show a decline from $5,516,000 to $3,843,000, while those of purchased domestic trade acceptances, all with bankers' indorsements, increased from $496,000 to $3,379,000. Aggregate holdings of purchased bills, including both bankers' and trade acceptances, because of the substantial increase in the amounts of bankers' domestic acceptances show an increase from $271,338,000 on J a n u a r y 4 to $303,673,000 at the end of the year. Owing to the redemption by the Treasury of about $7,500,000 3 per cent bonds held by the banks, and through the disposal of Liberty bonds held temporarily for the accommodation of member and nonmember banks, the Federal Eeserve Bank holdings of Government l o n g - t e r m securities show a decline from $51,167,000 to $28,869,000. An increase from $92,058,000 to $282,677,000 in the holdings of Government short-term securities is mainly accounted for by Treasury certificates held by the Federal Reserve Bank of New York to cover temporary advances to the Government, and to a slighter degree by investments in one-year 2 per cent Treasury certificates to secure Federal Reserve bank notes. Other earning assets, composed of bill of lading drafts and municipal warrants which at the beginning of the year amounted to $5,167,000 have declined to $13,000, due to the inclusion of the drafts with the other discounts and to the practical suspension of purchases of warrants. I n the following table are shown changes in the several classes of earning assets held by the Federal Reserve Banks on the first and last Fridays of the past year: [ I n t h o u s a n d s of dollars.] J a n . 4, 1918. Bills d i s c o u n t e d : Secured b y G o v e r n m e n t w a r o b l i g a t i o n s Customers' paper M e m b e r b a n k s ' collateral n o t e s Total O t h e r w i s e secured a n d u n s e c u r e d Agricultural paper Live-stock p a p e r M e m b e r b a n k s ' collateral n o t e s T r a d e acceptances— I n t h e foreign t r a d e I n the domestic trade All other, n . s Total • T o t a l d i s c o u n t e d bills Increase. 145,208 140,711 363,025 1,037,346 217,817 896,635 285,919 1,400,371 1,114,452 7,901 8,601 61,110 29,384 27,334 21,616 21,483 18,733 i 39, 494 14,769 247,513 27 15,959 208.247 1,217 i 39,266 339,894 625,813 decrease. D e c . 27, 1918. 302,567 1,702,S 137,327 1,077,125 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 13 [In thousands of dollars.] Jan. 4, 1918. Bills bought7 in open market: Bankers acceptances— In the foreign trade In the domestic trade Dollar exchange bills 180,609 82,867 1,850 Total v Dec. 27, 1918. 129,162 166,493 796 ' Total Total bills bought in open market United States Government long-term securities United States Government short-term securities All other earning assets Total earning assets /. 151,447 83,626 i 1,054 31,125 265,326 Trade acceptances— In the foreign trade In, the domestic trade Increase. 3,843 3,379 U,673 2,883 5,516 496 6,012 7,222 271,338 303,673 51,167 92,058 5,167 28,869 282,677 13 i 22,298 190,619 15,154 1,045,543 2,318,170 1,272,627 i Decrease, RESERVE P O S I T I O N OF T H E , F E D E R A L RESERVE BANKS. The general expansion which has taken place during the year is reflected to a limited extent in the increase in member banks' reserve deposits of $138,088,000 from $1,449,230,000 on January 4 to $1,587,318,000 on December 27, but in a much greater degree in the volume of Federal Reserve notes in circulation, the amount of these notes in circulation on January 4 having been $1,251,205,000, against $2,685,244,000 on December 27, an increase of $1,434,030,000. Other deposits, including those of the United States and of foreign governments, increased between these dates $18,759,000, while the increase in net deposit and note liabilities during the year has been $1,540,703,000, as against an increase of gold reserves of $402,554,000. I n its report for the year 1917 the Board called attention to the changes in the reserve position of the Federal Reserve Banks during the year and pointed out the effect upon their reserves of the flotation of the twTo Liberty loans. After payments for subscriptions to the first Liberty loan were made there was a notable strengthening of the reserve position, but, as stated in the report, a similar recovery subsequent to the close of the second Liberty loan had not taken place up to December 31, 1917, which was commented upon as indicating that the process of distributing the second Liberty loan was still uncompleted. On January 4, 1918, the combined reserves of all the banks stood at 64.2 per cent. There was a gradual improvement in the reserve position until February 15 when the combined percentage was 67.7 per cent, which proved to be the highest for the year 1918. Treasury certificates of indebtedness were sold in anticipation of the two Liberty loan issues of 1918, and also in anticipation of tax payments, and since February the tendency of reserve percentages has 14 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. been steadily downward, recoveries being slight and temporary. The combined reserves of the banks on December 27 were 50.6 per cent, and excepting seasonal recoveries anticipated in January and February, 1919, further declines may be expected until the financial program of the Treasury has been finally completed. Due to accessions to membership of State banks and to the following up by the Federal Reserve Banks of the Board's policy of concentrating gold and gold certificates in the vaults of the Federal Reserve Banks, the total gold reserves of the banks have shown an increase during the year of $402,554,000, having increased from $1,687,720,000 on January 4, 1918, to $2,090,274,000 on December 27. Of this increase approximately $200,000,000 is due to exchanges made with the Treasury of Federal Reserve notes for gold. E F F E C T OF WAR F I N A N C I N G U P O N T H E FEDERAL RESERVE B A N K S . The effect of two years of war financing upon the Federal Reserve System can best be shown by the following table, from which it will be seen that the enormous needs of the country, both for military and commercial purposes, have been provided for and that our surplus over minimum reserves required by law has been lowered only by $17,400,000: [In millions of dollars.] Apr. 5-6, 1917. Total cash reserve Total net deposit and Federal Reserve note liabilities. Total required reserve Reserve percentage Total earning assets Free gold Federal Reserve notes outstanding Collateral: Required paper Gold Note issue power 6 per cent. 2 55 per cent. 3 94 per cent. Dec. 27, 1918. Increase. 962.7 1,136.8 416.7 84.7 225.6 546.0 400.7 2,146.2 4,238.1 1,617.6 50.6 2,318.2 528.6 2,855.6 1,183.5 3,101.3 1,200.9 -34.1 2,092.6 -17.4 2,454.9 122.3 3 378. 4 1,365.0 2 1,567.3 U,288.3 1,321.5 1,545.0 849.9 -43.5 4 45 per cent. The table next subjoined, showing the combined resources and liabilities of the 12 Federal Reserve Banks, indicates the changes in the various items of resources and liabilities of the Federal Reserve System during the years 1917 and 1918. The figures of March 30, 1917, show the situation immediately before the entry of the United States into the war, and those of December 27 show the condition at the close of the year, while the figures for the intermediate dates show the changes directly attributable to the Liberty loan flotations. Combined resources and liabilities of the Federal Reserve System. [In thousands of dollars.] Mar. 30, 1917. J u n e 22, 1917. N o v . 30, 1917. D e c . 28, 1917. M a y 10, 1918. N o v . 8, 1918. D e c . 27, 191,8. EESOURCES. 374,903 200,061 492,842 267,910 52,500 499,887 395,236 52,500 499,917 317,520 52,500 480,580 437,444 52,500 386,437 435,452 5,829 337,365 374,758 5,829 T o t a l gold h e l d b y b a n k s Gold w i t h F e d e r a l R e s e r v e a g e n t s Gold r e d e m p t i o n f u n d - 574,964 360,668 2,414 813,252 390,765 8,001 947,623 661,824 12,278 869,937 781,851 19,345 970,524 885,027 27,584 827,718 1,145,640 73,233 717,952 1,283,309 84,013 T o t a l gold reserves L e g a l t e n d e r n o t e s , silver, e t c 933,046 9,282 1,212,018 35,680 1,621,725 54,486 1,671,133 49,635 1,883,135 59,365 2,046,591 54,248 2,090,274 55,945 947,328 1,247,698 1,676,211 1,720,768 1,942,500 2,100,839 2,146,219 20,106 84,473 83,185 157,799 194,303 405,608 350,790 205,454 283,421 397,285 275,366 612,324 326,717 286,036 1,316,967 480,271 374,522 1,400,371 302,567 303,673 104,579 29,275 18,425 15,715 435,287 36,427 78,491 2,585 961,852 47,304 41,792 1,429 956,072 48,350 58,883 4,990 1,225,077 40,116 106,762 1,844 2,171,760 29,479 91,956 28 2,006,611 28,869 282,677 13 Gold i n v a u l t a n d i n t r a n s i t Goldsettlpmentfund, Federal RPSPTVP Board Gold w i t h foreign agencies Bills d i s c o u n t e d : Secured b y G o v e r n m e n t w a r obligations All o t h e r Bills b o u g h t i n o p e n m a r k e t T o t a l bills o n h a n d U n i t e d S t a t e s G o v e r n m e n t l o n g - t e r m securities U n i t e d S t a t e s G o v e r n m e n t s h o r t - t e r m securities All o t h e r e a r n i n g a s s e t s Total earning assets Uncollected i t e m s ( d e d u c t from gross deposits) 5 per c e n t r e d e m p t i o n f u n d a g a i n s t F e d e r a l R e s e r v e b a n k notes T o t a l resources ,- . : 167,994 552,790 1,052,377 1,068,295 1,373,799 2,293,223 2,318,170 135,034 400 5,393 198,387 500 267 373,160 537 2,499 313,043 537 46 455,726 404 66 687,468 3,924 18,790 759,608 5,988 22,005 1,256,149 1,999,642 3,104,784 3,102,689 3,772,495 5,104,244 5,251,990 56,075 57,171 68,500 70,442 75,118 1,134 79,824 1,134 80,681 1,134 20,567 720,411 100,961 495,807 806,209 137,581 1,000 220,962 1,489,370 238,867 19,473 108,213 1,453,166 191,689 17,969 138,529 1,548,137 309,773 110,611 160,256 1,545,996 527,796 114,941 63,367 1,587,318 554,823 106,992 LIABILITIES. Capital paid i n Surplus Government deposits D u e to members, reserve account Collection i t e m s All other deposits, i n c l u d i n g foreign G o v e r n m e n t credits Oi Combined resources and liabilities of the Federal Reserve System—Continued. ca [In thousands of dollars.] Mar. 30, 1917. J u n e 22, 1917. N o v . 30, 1917. Dec. 28, 1917. M a y 10, 1918. N o v . 8, 1918. Dec. 27, 1918. LIABILITIES—continued. T o t a l gross deposits 841,939 1,440,597 1,968,672 1,771,037 2,107,050 2,348,989 N e t deposits 706,905 1,242,210 1,595,512 1,457,994 1,651,324 1,661,521 1,552,892 357,610 525 499,721 776 1,377 1,056,983 8,000 2,629 1,246,488 8,000 6,722 1,569,613 7,878 11,697 2,558,196 68,864 47,237 2,685,244 117,122 55,309 1,256,149 1,999,642 3,104,784 3,102,689 3,772,495 5,104,244 5,251,990 89.0 71.6 19.1 63.2 42.2 61.8 29.6 60.3 50.0 49.8 60.6 50.6 69.8 Federal Reserve notes i n actual circulation Federal Reserve b a n k notes i n circulation, n e t liability All o t h e r liabilities T o t a l liabilities R a t i o of t o t a l reserves t o n e t d e p o s i t a n d F e d e r a l R e s e r v e n o t e liabilities c o m b i n e d (per c e n t ) R a t i o of bills secured b y G o v e r n m e n t w a r obligations t o t o t a l bills on h a n d (per c e n t ) 2,312,500 o H O a a B W O A N N U A L REPORT OF THE- FEDERAL RESERVE BOARD. 17 The material changes in the items comprising resources and liabilities of the Federal Eeserve Banks from March 30, 1917 (which date was prior to the declaration of war and also before the act was amended on June 21, 1917, which changed reserve requirements by providing that all reserves of member banks be carried with the Federal Eeserve Banks), to December 27, 1918, have been as follows: [In millions of dollars.] RESOURCES. 1. Cash: Gold Legals and silver 1,152 47 Increase. 2. Bill holdings: DiscountsWar paper Other discounts Acceptances 1,400 283 219 1,199 — 1,902 3. Government securities: Long term Short term 264 4. Warrants a 16 5. Float 171 6. 5 per cent redemption fund against Federal Reserve bank notes 6 7. All other resources, net 17 Total LIABILITIES. Capital Surplus Deposits: Government Member bank Foreign Government and other credits Increase. 25 1 43 867 107 • 1,017 Federal Reserve notes 2,328 Federal Reserve bank notes 117 All other liabilities, net, including 1918 net earnings 55 Total 3,543 3,543 a Decrease. I n connection with the loans and discounts, it should be noted that the increase of Government secured paper held by the banks has been about $1,400,000,000 as against an increase of commercial discounts and purchases of acceptances combined of $502,000,000. The increase in Federal Eeserve notes outstanding since March 30, 1917, has been $2,328,000,000, from which it will be seen that after making allowances for the notes which have been exchanged for gold the net expansion in note issues has been due largely to the discount by the banks of paper secured by war obligations of the Government. About two-thirds of the profits made by the banks during the year 1918 have been due to the expansion of this class of loans. The increase in capital of $25,000,000 has been due in part to the increase in capital and surplus of member banks, but principally to payments to capital account by State banks and trust companies which have become members of the S3^stem. The increase in Government deposits noted for part of the year has been due to the larger activities of the Treasury in connection with war financing. The increase in member bank deposits is accounted for by changes in reserve requirements made by the act of June 21, 1917, the growth of deposits of national banks, and by the reserves carried by the State bank and trust company members, most of which have joined the system since June 21, 1917. 100823°—19 2 18 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. The increase in Federal Eeserve bank notes of $117,000,000 does not represent any material addition to the circulating medium, as most of these notes have been issued in substitution for silver certificates by virtue of the act of April 23, 1918, which authorizes the issue of $1 and $2 Federal Eeserve bank notes, upon the retirement of silver certificates in equal amounts, to be secured by Treasury certificates of indebtedness deposited with the Treasurer of the United States. A more extended discussion of these bank notes appears further on in this report. ACCEPTANCES. The acceptance is a comparatively new development in American finance. A few of the States, just prior to the passage of the Federal Eeserve Act, authorized banks and trust companies operating under State charters to accept bills of exchange drawn upon them, and the Federal Eeserve Act authorized such transactions on the part of member banks where the drafts or bills have not more than six months to run and where they grow out of transactions involving the importation or exportation of goods, the total volume of such acceptances outstanding at any one time not to exceed in the aggregate one-half of the paid-up capital and surplus of the accepting bank. The act of March 3, 1915, authorized the Federal Eeserve Board to permit member banks to accept and Federal Eeserve Banks to discount acceptances in a total amount not exceeding the capital and surplus of the accepting bank, and the act of September 7, 1916, authorized member banks to accept drafts and bills growing out of transactions involving domestic shipments of goods, provided shipping documents conveying or securing title are attached at the time of acceptance, or which are secured at time of acceptance by warehouse receipts or other similar documents conveying or securing title, covering readily marketable staples. The total amount of domestic bills which may be accepted by a member bank may not exceed at any one time in the aggregate one-half of its paid-up and unimpaired capital stock and surplus. The Board had on December 31, 1918, authorized 161 member banks to accept up t o 100 per cent of their capital and surplus. P u r chases of acceptances constituted the greater part of the open-market transactions of the Federal Eeserve Banks. Acceptances bought are mainly bankers' acceptances, although trade acceptances, which are drafts drawn by the seller upon the purchaser of goods and which may be either foreign or domestic in their character, are now being acquired in increasing volume, in some districts the aggregate A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. 19 Trade acceptances are discounted more freely upon the indorsement of member banks, and a differential of one-fourth of 1 per cent is usually given in favor of these acceptances as against promissory notes. The following tabular statement of acceptances bought in the open market by the Federal Reserve Banks during the past four years shows the large increase in the volume of the acceptance business: Acceptances bought in open market by Federal Reserve Banks. [In thousands of dollars; i. e., 000 omitted.] P u r c h a s e d from other Federal reserve b a n k s . B o u g h t in o p e n market— 1915 Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total 1916 1917 3,230 52,377 123,406 53,122 27,542 11,313 12,544 27,061 20,681 13,539 8,191 3,543 32,776 64,845 386,095 14,105 25,834 7,565 2,963 250 72 5,782 1,801 1,455 1,788 1918 1917 1918 86,481 445,307 70,710 51,007 54,759 25,388 61,142 22,788 16,397 17,561 9,743 48,018 194,158 945,498 77,686 122,800 70,766 45,477 122,787 26,096 13,903 14,691 25,024 150,653 5,047 19,659 15,204 40,102 3,357 1,005 5,572 6,944 16,675 9,264 25,333 20,249 6,709 50,182 42,321 54.199 331 2,514 100,077 4,551 25,911 19,047 8,242 22,506 909,301 1,809,539 168,411 336,590 Bankers' acceptances are regarded as the most liquid of all investments, and it has always been the policy of the Board to permit a substantial differential in their favor. The rates on acceptances are subject to fluctuations, reflecting accurately the varying conditions of the money market, and consequently the Board has never fixed a definite rate for them but has prescribed maximum and minimum rates within the limitations of which the Federal Reserve Banks are permitted to purchase bills. I n 1915 Federal Reserve Bank acceptance rates ranged between 2 and 3 per cent, and at the present time the minimum rate is 4 per cent. The private rate in London has for the past nine months been about 3 | per cent against average current rates in New York of 4^ per cent. While this difference may have diverted some business to the English banks, the Board has not as yet deemed it advisable for the Federal Reserve Banks to meet the British rate, because of the large financial operations of the Treasury, and for other reasons which are stated below. I t was thought that a lower rate for any class of paper than that borne by member banks' 15-day collateral notes secured by Government obligations might have an unfavorable effect upon the Treasury's operations. The British rate of 3J per cent, however, has been maintained for nearly a year, despite the fact that London banks have been paying 20 A1STJSTUAL REPORT OF T H E FEDERAL RESERVE BOARD. 3 per cent interest on domestic balances and 4J per cent interest on foreign balances, while the British Government is paying 5 per cent on loans made to it by the United States Government. The report of the British Committee on Currency and Foreign Exchanges, dated August 18, 1918, however, indicates the possibility of an advance in the British discount rate on acceptances. As no reduction in the rate for paper secured by Government obligations is contemplated by the Board, a lower acceptance rate at Federal Reserve Banks would have a tendency to reduce the proportion of bondsecured paper held by them, and to bring about a corresponding increase in their proportion of commercial paper holdings. I n considering rates of discount for bankers' acceptances in the United States, certain fundamental differences between the London and the New York money markets must be kept in mind. I n London there is an official rate fixed by the Bank of England, known as the bank rate, and there is also an open-market or private rate. The bank rate is the rate at which the Bank of England will buy approved bills of exchange in the London market. The bank will not buy the acceptances of foreign banks domiciled in London nor of foreign agencies established in London. The London market can avail itself of the rate established by the Bank of England, which is prepared at all times to absorb bills at its prevailing discount rate. The bank itself, whenever it seems desirable, operates in the market, absorbing funds when it wishes to maintain or advance the rate, and whenever it wishes to ease the market the bank takes an active instead of a passive p a r t in the purchase of bills of exchange. The Bank of England rate is usually higher than the private rate, which is governed by the demand for and supply of bills of exchange. The supply is represented largely by bills drawn for the purpose of carrying on international commerce in the form of 60 and 90 days' sight acceptances drawn upon English banks and acceptance houses. The demand in the open market comes mainly from the joint-stock banks, private banks, and discount companies, and represents accumulated funds whose use in other channels is not expected to develop for some time—say, 30, 60, or 90 days and sometimes for longer periods. Bills of exchange available for discount with the Bank of England are purchased by these institutions with the knowledge that they can always be disposed of at the bank rate on the day of sale, and this knowledge gives such elasticity to investments in bills of exchange that purchases are made freely from moneys temporarily idle, and a large portion of the resources of the purchasing institutions is carried in the shape of bills purchased at the open-market rate which are discountable at the Bank of England. Should a feeling arise in the course of market operations that the Bank of Eng A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. 21 land is likely to raise its rate, which is usually done in gradations of one-half of 1 per cent to 1 per cent, the open-market rate, or private rate, will rise in anticipation of the change, above the official bank rate. During a period when the bank rate seems to have been established at a definite figure and when no changes are anticipated, the tendency of the private rate is to drop below the bank rate and to continue there. Bankers and discount houses purchasing bills of exchange at the private rate know that in any event they can sell their bills at the bank rate, and if this rate holds fairly steady they have an opportunity to earn the full interest obtainable on bills purchased for such time as they may be held. Furthermore, purchasers know that if the bills are carried for a considerable portion of the time they have to run and then must be sold at the bank rate, there will be a profit on the investment for the time the bills are carried even though sold at the, higher bank rate. The accumulation of funds in London from all parts of the world has been invested to a large extent in bills of exchange for many years. Experience, demonstrating the safety of these investments, has given great elasticity to the operations and has made the open discount market in London for bills of exchange so broad that large transactions are carried on without noticeable effect upon the money market. I t is therefore natural that during periods of steady money rates the private rate should rule below the bank rate. Before the war, time bills of exchange were drawn upon London covering exports and imports between England and other countries and between foreign countries, all of which created a vast turnover, which the English money market was able to absorb because of the accumulation of funds in London available for such investments. During the war, owing to several causes, sterling bills of exchange were not created in nearly so large a volume. One reason for this is that the United States Government was making loans in dollars to Great Britain, France, and Italy to provide for purchases by these nations in the United States, and another is that purchases made by these nations in the United States include raw materials which have been imported into the United States to be used in the manufacture of goods for the allied powers which otherwise might have been imported direct by those nations. This applies particularly to food, clothing, and munitions. As a result, the British money market is, or has been until recently, rather bare of bills of exchange. Funds available in London for use in the open market are probably greater now than in normal times, as there has been an accumulation due to the fact that foreign exchanges have generally ruled against Great Britain, which has made the withdrawal of sterling balances by foreign nations difficult and expensive. Even though the bank rate has been maintained at 5 per cent, the private rate has naturally 22 ANNUAL REPORT OF THE FEDERAL. RESERVE BOARD. fallen below this figure and has ruled around 3J per cent. The cost of converting sterling balances into balances in other countries where a higher interest rate might be obtained, added to the increased risks of such conversion due to the war, has operated to prevent transfers from the London market which otherwise might have been made. At the beginning of the war in 1914 the creation of sterling bills of exchange in all parts of the world was stopped for the time being, and as a result there was a very large amount of unloanable funds in the London open-money market. The London joint-stock banks were obliged to lower the rate of interest which they paid upon balance to a point below the normal difference of 1 | per cent off the bank rate. After the third moratorium proclamation, which reestablished the credit of British institutions all over the world, the drawing of time sterling bills was resumed on a large scale, and as a result London money rates went above 6 per cent. After the United States came into the war the creation of sterling bills fell off rapidly for reasons already stated, which resulted in bringing the British money market into the position outlined. I n New York, which at the present time is the only city in the* United States which has anything like a broad acceptance market, the rate established by the Federal Eeserve Bank is followed closely by the outside market, because there are not ordinarily sufficient funds available in the New York open market to absorb acceptances offered, and consequently there is no tendency for the outside rate to go below the Federal Eeserve Bank rate. Should there be a period of very easy money, it is probable that the outside rate in New York would fall somewhat below the Federal Reserve Bank rate. This will transpire whenever bankers feel that they can hold bilk until maturity without being obliged to transfer them to the Federal Reserve Bank during the life of the bills. With the present restrictions upon foreign trade and without free shipments of gold between Great Britain and the United States, the New York and London money markets stand each upon its own bottom and are not subject to the ordinary leveling process usual in normal times. This being true, the Federal Reserve Board has felt justified in basing the rates of the Federal Reserve Banks upon our own money-market conditions instead of considering them in the light of market conditions abroad, as may become necessary upon the restoration of normal conditions. The problem of establishing discount rates for acceptances through the Federal Reserve Bank in New York since the United States entered the war has, consequently, been entirely free from any consideration of the English rate. I t should be borne in mind also that our acceptance rate is applied to bills of exchange drawn upon banking institutions authorized by law to accept ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 23 time bills under certain restrictions. Our law provides for domestic acceptances only to a limited extent (50 per cent of the capital and surplus of the accepting bank) and was framed especially to promote our foreign trade. During the wrar we wTere obliged to import on balance a very large volume from many countries, and it was necessary to afford every possible facility to aid in the financing of such imports. Too high an acceptance rate would naturally have caused more or less uneasiness in the countries called upon to make advances against their exports to us, as the impression might have prevailed that we were pressed for funds. Prevailing rates of from 4 to 4J per cent, therefore, have seemed to be entirely natural. When a normal basis of trade is again established between the principal countries of the world, the ability of this country to uphold the dollar in foreign markets will lie partly in the judgment displayed in adjusting our acceptance and bank rates. By that time, however, the English money market, as well as our own, will have resumed a more normal condition, so that the tendency in world currents of trade will be more clearly marked. The flow of money will be more noticeable and rates will have a greater tendency to establish themselves more automatically outside of the Federal Reserve System, thereby furnishing a surer basis for rate movement in the system. I n the development of the American acceptance market it is necessary to provide not only an outlet for acceptances but means of securing acceptances of bills in adequate volume, and in order to enable American banks and bankers to compete with British banking houses in financing the world's trade the combined power of American institutions whose acceptances can be made available in foreign markets to accept time bills must be large enough to meet all requirements, for otherwise should importers find that it is only occasionally that they can obtain dollar acceptance credits from American banks, due to the fact that these banks have reached the limit of acceptance liabilities provided by law, the importers will naturally return to the sterling acceptances which are available at all times in sufficient amounts to meet the demand. On a recent date American banks whose acceptances, under the most liberal estimate, might be regarded as available in foreign markets were found to have acceptances outstanding to the amount of $477,500,000, and under existing limitations on this basis their acceptance liability can be increased by $630,000,000, provided every bank included in the list should be called upon to accept to the full extent of its ability. Many of these banks, however, are located in inland cities, and their acceptances are undoubtedly largely against domestic transactions. When they do accept*on foreign transactions, it is usually in connection with some credit in which they have been Digitized forinvited FRASERto participate. 24 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. I n the three cities of Boston, New York, and Philadelphia the acceptance line (on the basis of recent totals) still available for use by the accepting institutions is only a little over $275,000,000. The cities of Baltimore, Wilmington, and Charleston on the eastern seaboard can accept for about $15,000,000 more, making a total available for the promotion of the foreign trade of cities on the Atlantic slope of about $290,000,000, while the foreign trade naturally financed- in these cities would require a much larger line if any considerable proportion were covered by dollar acceptances. I n order to provide additional facilities for engaging in foreign transactions, it has been suggested to the Board that it may become advisable to amend section 13 of the act so as to permit the Federal Reserve Board to authorize any member bank having a combined capital and surplus of not less than $1,000,000 to accept drafts or bills of exchange drawn upon it having not more than six months' sight to run, exclusive of days of grace, which grow out of transactions involving the importation or exportation of goods, to an amount not exceeding 200 per cent of its capital and surplus, provided that no bank shall be permitted to accept for domestic transactions in an amount greater than 50 per cent of its capital and surplus or more than 50 per cent of its capital and surplus for the purpose of furnishing dollar exchange, but that any part of the aggregate amount which a bank may be authorized to accept may be used in accepting drafts or bills of exchange growing out of transactions involving the importation or exportation of goods. By limiting the authority to accept in the larger amount proposed, to foreign transactions, there would be no possibility of the added acceptance privilege being used for the expansion of domestic credits, and the aggregate amount of acceptances outstanding would be controlled by our foreign trade requirements. MEMBERSHIP OF STATE INSTITUTIONS. The amendments to section 9 of the Federal Reserve Act approved June 21, 1917, prescribe definite terms and conditions as to the admission and status of State banks as members of the Federal Reserve System, and provide also for their withdrawal upon six months' written notice. The Board had already adopted a liberal policy in dealing with State banks and trust companies, but the action of Congress has confirmed and strengthened what the Board sought to accomplish by regulation. Section 9 of the Federal Reserve Act as amended provides that any bank becoming a member of the Federal Reserve System shall retain its full charter or statutory rights as a State bank or trust company, which has been interpreted by the Attorney General of the United States as going so far as to release them from the restrictions of ASnSTUAL REPORT OF THE FEDERAL RESERVE BOARD. 25 section 8 of the Clayton Act, which relate to joint directorships. Only 53 State banks and trust companies had become members of :he system up to June 21, 1917, but the legislation to which reference has just been made removed the principal obstacles in the way of State bank membership, and this, together with the patriotic desire on the part of many of the banks to assist the Government in its war financing, has resulted I n a rapid increase in the State bank membership. The movement of the State banks into the system still continues, for the fact is appreciated that the war is not yet over in a financial sense and the State bank members, almost without exception, as the result of their experience in the system, have come to appreciate the value of membership. At the close of the calendar year 1917, 250 State institutions were members, with an aggregate capital and surplus of $520,765,000 and aggregate resources of about $5,000,000,000. On December 31, 1918, the total membership of State banks and trust companies had increased to 936, having an aggregate capital and surplus of $750,618,000 snd aggregate resources of about $7,339,000,000. The total number of State banks and trust companies eligible for membership, including those now members, is estimated to be approximately 8,500 with total resources of about $13,500,000,000. The present State bank and trust company membership, therefore, represents about 54 per cent of the total banking assets of all State banking institutions eligible for membership in the Federal Reserve system. Tables showing the titles, dates of admission, capital and surplus, and aggregate resources of State banks and trust companies appear in the appendix. The Board wishes to express its appreciation of the cooperation which has been given it by nearly all of the State bank commissioners, and as an illustration of the influence which has been exerted by man}?- of them the following is quoted from the annual report of the superintendent of banks of the State of Ohio for 1918: The flotation of the different Liberty loans clearly demonstrates the value of the Federal Reserve System of the National Government in this great war crisis. Time will continue to prove the soundness of the system, and as the bankers come to a fuller realization of the benefits to be derived by membership, and what the system has accomplished for the protection of business, it is believed that more will seek membership therein. The reserve of the Federal Reserve Bank is the basis of its loaning power, and every State bank joining the system will, through its deposit of reserve with the Federal Reserve Bank, increase the credit facilities thereof. It is manifestly of great importance therefore that all qualified State banks and trust companies identify themselves with the system in order that the demands of legitimate business and the requirements of the Government may have sufficient credit. 26 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. reserves held by State banks, it seemed to be insufficient to meet all the demands that would no doubt come upon these institutions. Consequently, I immediately used all the argument and influence at my command to induce eligible State banks to join the Federal Reserve System, so they could not only contribute their share to the mobilized reserves of the country, but have available direct to them, as a right, the rediscount facilities of the Federal Reserve System. In my opinion the record of the State banks in Ohio in supporting the Federal Reserve System is a creditable one. The assets of those banks which are members at the date of this report aggregate $275,000,000. Pending applications when accepted by the Federal Reserve Board will increase the total aggregate thereof to $317,000,000, or 34 per cent of the entire State banking resources. A word of appreciation is due also to the American Bankers' Association, which has continued its campaign committee on Federal Reserve membership. This committee is doing a great deal of effective work in calling the attention of State banks to the advantages to be derived from membership in the system. The growth of State bank membership during the year 1918 is shown in the following tables: TABLE 1.—Number and total resources of State banks and trust members of Federal Reserve System, by districts. companies, [Resources in t h o u s a n d s of dollars.] Dec . 31, 1917. Federal Reserve district. Total Sept. 1, 1918. 14 44 8 13 14 20 71 13 16 9 11 17 339,722 2,707,541228,440 369,147 43,804 150,656 792,425 209,694 27,527 68,099 11,133 65,697 23 63 16 26 20 30 114 23 35 16 43 40 528,584 3,099,215 244.336 442,848 60,405 180,700 878,542 266,436 46,899 79,695 26,694 84,392 24 66 16 30 20 38 128 24 40 .16 58 53 533,264 3,026,540 244,034 452,907 60,313 177,031 944,596 273,186 47,127 78,632 31,271 125,923 25 82 20 48 26 42 206 36 53 23 86 66 539,451 3,084,551 273,443 494,140 81,695 200,461 1,212,651 299,537 60,180 83,967 46,704 139,020 250 5,013,885 449 5,938,746 513 5,994,824 713 6,575,800 Oct . 1, 1918. Federal Reserve district. Total— June 29, 1918. Num- Resources. Num- Resources. Num- Resources. Num- Resources. ber. ber. ber. ber. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis: KansasCity Dallas . San Francisco May 10,1918. NOTr. 1, 1918. Dec . 1, 1918. Jan . 1,1919. Num- Resources. Num- Resources. Num- Resources. Num- Resources. ber. ber. ber. ber. ! , 28 89 22 57 31 45 237 36 59 24 89 68 564,301 3,104,110 277,845 508,512 91,263 201,672 1,237,411 299,537 62,948 85,162 47,382 139,499 28 95 23 58 33 48 267 43 62 25 88 77 598,677 3,302,338 316,343 553, 664 106, 309 236, 063 1,311,447 341,169 72,988 96, 943 52,631 155,504 29 96 28 63 34 50 278 44 68 27 99 79 599,747 3,306,056 335,928 557, 074 107,099 237,845 1,321,887 341,615 76,103 103, 244 57,098 156, 494 31 101 30 67 37 54 288 44 70 27 100 87 628,462 3,366,785 339, 571 585, 591 108,984 238, 500 1,330,062 341,615 77,116 103, 244 57,303 161 580 785 6,619,642 847 7,144,076 895 7,197,190 936 7,338,813 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. 27 TABLE 2.—Ratio of number and total resources of State bowks and trust companies which have joined the Federal Reserve System to total State banks and trust companies reported as eligible for membership on the basis of capital requirements. Dec. 31, 1917. Federal Reserve district. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Sept. 1, 1918. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. 11.7 55.0 7.1 35.0 12.2 54.5 12.7 55.6 17.7 69.4 62.1 12.4 18.5 71.1 23.0 70.7 6.2 32.8 30.7 3.1 6.2 32.8 7.8 36.8 4.3 36.5 29.7 2.1 4.9 35.7 7.9 39.8 3.9 13.4 2.7 9.8 3.9 13.5 5.0 18.2 4.0 39.7 33.8 2.7 5.0 40.5 5.6 44.9 5.4 39.0 32.7 3.4 6.1 36.3 9.8 50.0 2.3 37.4 28.7 1.3 2.4 36.4 3.7 41.0 5.5 13.3 2.5 7.8 6.3 13.2 8.3 17.0 1.8 15.1 13.1 16.1 1.0 1.8 15.3 2.5 9.0 15.0 5.4 2.3 12.2 12.8 18.1 22.4 5.4 12.5 2.3 6.5 7.1 8.4 9.0 13.8 2.9 37.3 Oct. 1, 1918. New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas Citv Dallas ". June 29, 1918. ReReReReNumber. sources. Number. sources. Number. sources. Number. sources. Total Federal Reserve district. May 10, 1918. 5.3 44.1 Nov. 1, 1918. 6.0 44.6 Dec. 1,1918. 8.4 48.4 Jan. 1,1919. ReReReReNumber. sources. Number. sources. Number. sources. Number. sources. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. 14.2 58.2 61.8 14.2 15.7 14.7 61.7 64.8 71.2 75.8 28.4 27.0 75.7 26.7 77.2 25.0 37.3 45.2 11.7 10.9 42.5 8.9 8.6 45.6 41.0 44.9 11.0 10.3 44.6 9.5 9.3 47.2 20.3 23.9 23.7 6.4 6.0 7.2 6.6 24.3 45.2 53.3 52.9 6.4 6.0 7.2 6.6 53.5 51.1 54.6 54.1 11.3 13.7 13.2 12.7 54.9 41.0 46.7 46.7 3.7 4.4 4.5 46.7 4.5 17.8 21.5 20.6 9.3 9.8 11.0 10.7 21.8 16.2 19.9 18.6 2.6 2.8 3.0 3.0 19.9 22.7 27.5 25.3 18.5 18.6 27.5 21.0 20.8 13.8 15. 5 15.4 10.4 9.2 16.0 11.7 10.6 Total 9.2 49.2 9.9 53.1 10.5 53.5 11.0 54.5 RATES OF E A R N I N G S F R O M I N V E S T M E N T S OF T H E FEDERAL RESERVE B A N K S . The subjoined table shows the advancing tendency of rates at Federal Keserve Banks during the year. These rates are based upon actual discount and interest earnings and corresponding holdings of each class of productive assets. The apparent decrease in the average rate since July is due to the increased holdings of short-time paper secured by Government obligations on which the rate at most of the banks has been 4 per cent. The apparent decline in the rate of earnings on United States securities is due to the fact that during the early part of the year advances on United States bonds and Treasury certificates were reported in the statements of the banks as temporary investments in these securities, while since May transactions based upon these securities have been included in bills discounted. 28 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. Rates of earnings from investments of the Federal Reserve January February March April May June July August September October November December Average for year Banks. Bills discounted. Bills bought in open market. United States securities. 3.94 4.02 3.94 4.14 4,38 4.31 4.40 4.35 4.27 4.22 4.27 4.29 3.64 3.79 3.92 4.18 4.36 4.25 4.24 4.38 4.19 4. 25 4.33 4. 33 3.27 3.25 3.59 3.56 3.06 3.00 2,76 2.87 2.73 2.44 2.49 2.40 3.75 3.81 3.86 4.07 4.29 4.20 4.31 4.27 4.21 4.13 4.19 4.14 4.24 ! 4.14 2.99 4.12 Total investments. E A R N I N G S A N D E X P E N S E S OF T H E FEDERAL RESERVE R A N K S . I n its previous reports the Board has called attention to the fact that the Federal Reserve Banks are not operated primarily for profit, and it seems proper to reiterate this statement at this time, although it may seem incongruous in view of the fact that the combined gross earnings of the 12 banks for the year 1918 amounted to $67,584,417, the net earnings being $55,446,979, or just ten times the dividends paid. The net earnings were at the rate of 72.6 per cent on an average aggregate capital for the year of $76,342,000. A year ago six of the banks had paid all accumulated dividends, while two were 12 months in arrears, and four were 6 months behind. All accumulated dividends were paid by all banks on June 30, 1918, and on December 31 out of net earnings, after dividend requirements had been met, t h e . 12 banks carried to their surplus accounts the sum of $21,605,901, and set aside as a reserve for franchise tax to be paid to the United States, as provided in section 7 of the Federal Eeserve Act, the sum of $26,728,440. The law provides that after all expenses and dividend claims have been paid, all net earnings shall be paid to the United States as a franchise tax, except that onehalf of such net earnings shall be paid into a surplus fund until that fund shall amount to 40 per cent of the paid-in capital stock of the bank. The Federal Eeserve Bank of New York has now accumulated the maximum surplus permitted by law—40 per cent—while the percentage of surplus to capital of the other 11 banks is as follows: Per cent. Boston Philadelphia Cleveland Richmond Atlanta Chicago 22.9 17.2 19. 6 28. 5 24. 3 29.6 ANJSTUAL REPORT OF THE FEDERAL RESERVE BOARD. St. Louis Minneapolis K a n s a s City Dallas San F r a n c i s c o 29 Per cent. 21.1 24. 8 33.1 IS. 8 2G. 4 - The gross and net earnings and dividends paid by all the Federal Reserve Banks for the calendar year 1918, and the amount set aside in each case for franchise tax are shown in the following table: Gross and net earnings and dividend payments of the Federal Reserve Banks during 1918; also amounts transferred to surplus fund and reserved for Government franchise tax. for Transferred Reserved to surplus Government franchise fund. tax. Gross earnings. Net earnings. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas.....'... San Francisco $4,475,195 25,314,736 4,357,740 5,226,864 2,979,048 2,293,058 8,481,747 2,676,828 2,049. 954 3,451,936 2,089,526 4,187,785 $3,505,180 22,634,033 3,270,824 4,234,679 2,335,228 1,665 585 6,831,072 1,950,807 1,585,546 2,762,708 1,554,102 3,117,215 $384,180 1,195,026 583,983 716,107 232,432 182,473 604,635 404,838 168,103 309.729 261,503 497,675 $1,460,500 7,672,676 1,304,172 1,776,000 1,039,799 735,000 3,100 223 801,655 688,872 1,210,713 592,204 1,224,087 $1,460,500 12,795,215 1,304,172 1,776,000 1,039,799 735,000 3,100,223 801,655 688,872 1,210,713 592,204 1,224,087 Total... 67,584,417 55,446,979 5,540,684 21,605,901 26,728,440 Federal Reserve Bank. Dividend payments. The great expansion in the business of the banks, which has been reflected in their earnings, has made it necessary for them to make large additions to their working forces. The number of officers and employees in all departments at each of the Federal Reserve Banks at the close of the year wTas as follows: Boston New York Philadelphia Cleveland liichraond Atlanta Chicago 585 2, 657 422 589 ._ 254 317 815 St. Louis ^Minneapolis K a n s a s City [Dallas San F r a n c i s c o Total ^ 385 26(7 480 403 531 7,705 I t is evident that the Federal Reserve Banks, in order to insure the proper conduct of their business and to protect the interests of the Government, the member banks, and the public, must employ men of exceptional experience and ability. Experience has shown that the larger member banks are disposed to draw upon the Federal Reserve Banks for men to fill high official positions, and in order to retain the services of officers w7ho are constantly being tempted with outside offers at high salaries, it has become necessary to recognize this competition. While the Board has in no case approved salaries for Federal Reserve Bank officers as high as those paid officers of similar rank by the larger member banks in the 30 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. various Federal Reserve cities, it has approved salaries approximating the average salaries paid by the larger local banks. I n the case of junior officers, heads of divisions, and clerks, the Board has recognized from the outset that the compensation paid them must be in line with that paid by the larger member banks. The Board does not believe that the Federal Eeserve Banks should become training schools for future officers of member banks; it feels, on the contrary, that sufficient inducements should be offered by the Federal Reserve Banks to make service with them attractive as a career. B A N K I N G QUARTERS. All of the banks have found their quarters inadequate for housing their employees, and most of them have been obliged to rent space in other buildings. The vault facilities also have been found insufficient, and the banks have been obliged to have recourse to safe-deposit vaults owned by other institutions. I n the circumstances the banks have naturally directed their attention to the acquisition and ownership of permanent quarters. I t has been found necessary in each case to secure a location near the financial center, convenient not only to the local member banks but to the post office and Subtreasury; but in the opinion of the Board all purchases have been made at reasonable figures, and in no case have maximum prices for the highest grade central property been paid. The Federal Reserve Bank of Boston has purchased a conveniently located building at a cost of $1,000,000. The building is old and may be demolished to make way for a new one specially designed for the bank, but in the opinion of the Board the price paid represents a fair value of the lot alone. The Federal Reserve Bank of New York has acquired a property close to the financial district at a cost of about $3,100,000, and. will utilize the old buildings until it has completed its plans for a modern building to take their places. The Federal Reserve Bank of Philadelphia has purchased the Penn Mutual Life Building on Chestnut Street at a cost of $600,000 and is now occupying it, having remodeled it to meet requirements. The Federal Reserve Bank of Richmond purchased a lot two years ago which it has not yet improved, because of high cost of building during the war, and it has also purchased for the use of its branch in Baltimore, at a cost of $200,000, a building formerly occupied by one of the local banks, which is entirely adequate for the purposes of the branch bank. The Federal Reserve Bank of Atlanta is occupying a new building which was completed in August, the cost of the building and lot having been about $230,000. ANNUAL REPOKT OF THE FEDERAL RESERVE BOARD. 31 The Federal Reserve Bank of Chicago has purchased for $2,936,000 a property in the financial district most suitably located. The building is not regarded as being of any value and will be torn down to make room for a new structure. The Board has approved plans of the Federal Reserve Bank of St. Louis for the purchase of a building, to be remodeled for ita occupancy. The Federal Reserve Bank of Kansas City has purchased a lot for $500,000. The Federal Reserve Bank of Dallas, which purchased a building three years ago, has found its present quarters to be inadequate and has purchased a larger lot for the sum of $145,000, upon which it proposes to erect a suitable building, and it will dispose of the building and lot now owned and occupied by it. The Federal Reserve Bank of San Francisco has acquired property near the financial center of the city at a cost of $405,000, and is now occupying a building to which additions will be made later on. The Federal Reserve Banks of Cleveland and Minneapolis have not as yet purchased lots. On December 14 the Board sent the following instructions to all Federal Reserve Banks, relating to the treatment of depreciation and extraordinary charges in closing the books at the end of the year. In order that there may be uniformity of practice, the Federal Reserve Board has approved for Federal Reserve Banks the adoption of the following rules for the treatment of depreciation and extraordinary charges against earnings and profit and loss account at the closing of books December 31, 1918: 1. Cost of Federal Reserve and Federal Reserve bank notes.—Balance of account, as shown by books on December 31, to be charged to current expense account. 2. Furniture and equipment account.—Balance of account, as shown by books on December 31, to be charged to current expense account. 3. Cost of vaults.— (a) All expenditures made during the year 1918 for vaults and vault equipment to be charged to current expense account; (b) balance of account, as shown by books on December 31, 1917, to be charged to profit and loss account. 4. Alterations and improvements.—Charge against current expense account all expenditures made during the year 1918 in repairing, altering, or remodeling bank premises. 5. Bank premises.— (a) Where properties have been purchased with the intention of erecting new bank buildings, banks to be permitted to charge against profit and loss account an amount sufficient to cover the estimated value of buildings which will have to be razed, such estimated valuation of buildings to be submitted to the Federal Reserve Board for approval before depreciation allowance is determined. (&) Where properties have been remodeled and are now used as permanent banking quarters by a Federal Reserve Bank, a reasonable depreciation charge will be permitted, but in no case shall it exceed 10 per cent of the estimated value of buildings on December 31, 1918. (c) Where a Federal Reserve Bank has purchased, or may purchase, a site for a new building, it will be permitted to charge down the book value of 32 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. premises now owned and occupied to a fair selling price, such price to be submitted to the Federal Reserve Board for approval before depreciation allowance is determined. 6. Apparent depreciation of Government securities.—Full provision to be made for apparent depreciation (based on market value) in Government securities before any sum is transferred to surplus account, and provision made for Government franchise tax. No change should be made in book value of securities but depreciation allowance should be charged to profit and loss account and credited to account " Reserve for depreciation." Depreciation should be figured on the following basis: 2 per cent bonds 1930-1938 98 4 per cent bonds 1925 106 3 per cent conversion 1946-47 _ 85 3 per cent one-year notes . 100 3 | per cent Liberty loan 1947 98 4 per cent Liberty loan 1942-1947_ _„_ 93 4J per cent Liberty loan 1928-1947__ 96 7. Surplus and franchise tax.—After dividends and all allowable ,charge-offs have been made, one-half the remainder, up to 40 per cent of capital paid in, to be credited to surplus account and the balance credited to an account to be opened under the title " Reserve for franchise tax," to remain in such account until demand therefor is made by the Government, of which due notice will be given you by the Federal Reserve Board. GOLD S E T T L E M E N T FUND. The general plan of operation of this fund has been described in previous reports and it is therefore unnecessary to make any further explanation of it. Owing to the great increase in the volume of business between the Federal Reserve Banks, caused partly by Government war financing (including large transfers of funds received from the sale of certificates of indebtedness and Liberty bonds and subsequent redistribution of these funds among various centers in payment for munitions and supplies for the account of the United States and the allied Governments) and partly by larger use of the collection and clearing facilities of the system, particularly in the matter of wire transfers from one Federal Reserve Bank to another, it was deemed expedient to install a system of daily settlements between the Federal Reserve Banks in place of the weekly clearings which had been in operation since the establishment of the fund in May, 1915. The first clearing under the daily settlement plan was made July 1, 1918. The new system has worked with facility, rapidity, and smoothness, and has eliminated much clerical work at the Federal Reserve Banks. I n order to expedite the daily settlements and to improve the collection and clearing service, a leased telegraph wire system, connecting all the Federal Reserve Banks and branches with the Board's office at Washington, was installed July 1, 1918. Under the daily settlement plan each Federal Reserve Bank telegraphs the A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. 33 Board by 10 a. m., eastern time, the respective amo.unts credited to other Federal Reserve Banks on the previous day. Upon receipt of the telegrams by the Board, clearing is made by book entries, and within one hour each Federal Reserve Bank is advised of the amount of credits for its account from the other Federal Reserve Banks and also of the net debit or credit to its gold settlement account on the books of the Board. I n order to eliminate unnecessary work between the San Francisco bank, its branches, and other Federal Reserve Banks, and delays in reconciling differences due to the distances between the parent bank and branches, beginning with December 2 the four branches of the San Francisco bank, located at Seattle, Spokane, Portland, and Salt Lake City, were authorized to make settlements through the fund in the same manner as the Federal Reserve Banks, except that the net debit or credit balance in the settlement of each branch is adjusted through the gold settlement fund account of the head office, as the branches do not maintain accounts with the fund. Since the installation of the leased-wire system, practically all transfers between the Federal Reserve Banks for account of the Treasury are made directly through the fund. Settlements on account of rediscount operations between the Federal Reserve Banks are also made by direct transfer through the fund, and on account of the instant contact afforded by the leased-wire system, transactions are completed within 20 minutes to 2 hours, the major portion of the time being consumed in the arrangement of details between the respective banks. Transfers through the gold settlement fund are of great value in these operations. The transactions through the fund have a very important bearing upon the reserve position of the banks, and as all entries affecting the fund are made on the books of the Board and at the banks, simultaneously, the Board is at once informed as to the effect of the day's transactions upon the reserves of each bank. Combined clearings and transfers through the fund during the year 1918 aggregated $50,242,592,000, as compared with $27,154,704,000 in 1917, $6^33,966,000 in 1916, and $1,052,649,000 in 1915, making a grand total of $83,983,911,000 since the operation of the fund was begun May 20, 1915, A comparison of the amounts of the average weekly settlements shows clearly the growth of the volume of transactions. Average weekly volume of clearings and transfers: 918, July 1 to Dec. 31 1918, Jan. 1 to June 30 1917 1916 1915 100823°—19 3 $1,004,596,000 966,203,000 522, 206, 000 106, 422, 000 31, 898, 000 34 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Analysis of the principal transactions growing out of the Government's ' financial program, and of the transactions through the gold settlement fund since the declaration of war, April 6, 1917, show^s the important part the fund has played in fiscal agency operations, for through it the Treasury has been enabled to transfer, without the actual handling of cash, vast sums from districts where they had accumulated to other districts where funds were needed to meet disbursements, the time consumed in transfers being measured in minutes instead of days. The settlement of April 12, 1917, for the week following the declaration of war showed totals liquidated of $293,506,000, while transfers between Federal Reserve Banks during the week amounted to only $1,622,000, making a combined total of $295,128,000. Total clearings of the settlement of May 17,1917, amounted to $412,103,000, and constituted the largest settlement up to that date. This volume was occasioned by large transfers on account of the sale of certificates of indebtedness by the Treasury issued in anticipation of the first Liberty loan. Transfers, during the same week, between Federal Reserve Banks, largely to New York, of Government funds for account of the Treasurer of the United States amounted to $108,740,000, making a record total of combined clearings and transfers of $520,843,000. The volume of clearings and transfers through the fund increased steadily after this time, mainly on account of the movement of funds in connection with the Treasury's large fiscal operations. A new record total of $1,092,920,000 for combined clearings and transfers was made in the week ended November 22, which immediately followed the first payment of 18 per cent on the second Liberty loan November 15, 1917. There was a large increase in the volume of business during May and June, 1918, on account of the movement of funds accruing from payments on subscriptions of the third Liberty loan. Combined clearings and transfers for the week ended J u n e 20 aggregated $1,140,250,000, and were the heaviest since the establishment of the fund. During the past four months the volume of combined clearings and transfers has averaged well over a billion dollars a week as the result of increased business due to movements of funds in connection with the fourth Liberty loan. During the past year the Federal Reserve Banks and the Federal Reserve agents have found it desirable to make payments for credit to their gold redemption funds against Federal Reserve notes, and to the banks' redemption funds against Federal Reserve bank notes, by transfers from their balances with the Federal Reserve Board to the Treasurer of the United States. Several of the Federal Reserve Banks also make payments to the Treasurer of the United States ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 35 for the credit of national banks in the 5 per cent redemption fund against national bank currency by transfers from their balances in gold settlement fund account. Total balances to the credit of the Federal Reserve Banks and agents amounted to $1,330,423,000 on December 31, 1918, divided as follows: Federal Eeserve Banks $401,926,000 and Federal Eeserve agents $928,497,000. Total increase in the combined funds during 1918 amounted to $522,176,000, as compared with $535,927,000 during 1917. PROPOSED I N T E R N A T I O N A L GOLD F U N D . The successful operation of the gold settlement fund has suggested the possibility of avoiding shipments of gold from one country to another in settlement of balances arising out of ordinary commercial transactions, and the Board is ready, if authorized to do so, to undertake negotiations looking to the establishment of an international gold exchange fund, or to assist in any way in its power in negotiations which may be begun by a Government department looking to that end. The Board realizes that the successful operation of a plan of this kind is dependent upon the stability of the governments concerned, and believes that definite plans can not perhaps be worked out until a stable peace has been assured. The Board would point out the importance of excluding all transactions arising from the adjustment of war obligations and of limiting the work of the fund to current commercial and exchange transactions. The gold deposited in a government bank or banks should be in the nature of a special or trust fund, and all nations participating should deposit their proper proportions of gold. Assuming that the leading nations of the world will be at peace for a long period of years, there seems to be no reason why an international arrangement of this kind should not operate as efficiently as our own gold settlement fund, which has cleared enormous transactions between distant sections of a country of vast area. The saving of loss and expense incident to abrasion and transportation charges and interest on gold transferred will be enormous, and the advantage to the commerce of the world w^ill be incalculable. I t will probably be necessary in the beginning to limit participation in the fund to the United States and the entente allies, and to a few of the leading neutral nations, but it is conceivable that all civilized countries may eventually be participants. EXPORT OF GOLD C O I N , BULLION, A N D CURRENCY. As the country's activities in connection with the war gained momentum and Government financing assumed large proportions, resulting in constantly expanding issues of Federal Eeserve notes, it 36 ANNUAL, REPORT OF T H E FEDERAL RESERVE BOARD. became apparent that in the national interest every effort should be directed toward the conservation of our gold supply. Under the power delegated to the Board by the Secretary of the Treasury under the Executive orders of September 7, 1917, October 12, 1917, and January 26, 1918, a committee of the Board meets daily to consider and pass upon all applications for permission to export coin, bullion, and currency; and the closest scrutiny has been given to all applications, each being treated upon its own merits. Until the signing of the armistice, first consideration was compatibility with the national interest, due regard being given to proposed exports of coin, bullion, and currency necessary to obtain certain essential commodities—such as nitrate for use in powder making; copper, lead, antimony, tungsten, and platinum for use in the manufacture of munitions; petroleum for shipping, motor trucks, aeroplanes, and other motor-driven apparatus; hides for the manufacture of leather, and other miscellaneous commodities. During the month of May some minor modifications were deemed necessary in the regulations which had been issued by the Board governing the exportation of coin, bullion, and currency, particularly in that section relating to funds carried by travelers leaving the country. Under the original regulations issued travelers leaving the country were permitted to carry on their persons or in their baggage United States notes, national bank notes, and Federal Reserve notes to the amount of $5,000; American silver dollars, subsidiary silver coins, and silver certificates to the amount of $200; and gold coin or gold certificates to the amount of $200. This rule was modified so that travelers were permitted to take with them United States paper currency, other than gold or silver certificates, to the extent of $1,000 for each adult, with the further provision that subsidiary silver coins not to exceed $100 for each adult might be taken in lieu of a like* amount of notes. With few exceptions travelers do not carry large sums of money for personal expenses, as their needs are better served by the use of foreign drafts or travelers' checks; nor was the permission to carry gold certificates of more than slight value to the traveler. While the amount was small in individual cases, in the aggregate it was considerable and meant the loss of so much gold. Another and far more important reason for the modification of the regulations was the belief that United States currency taken into foreign countries by travelers was being absorbed by enemy agents for propaganda purposes. To further curtail the activities of enemy propagandists it also became necessary, in granting permission for the exportation of foreign paper currencies, to restrict such exportations to the country of origin. I n order that persons, firms, or corporations located near the Canadian border, who in the usual course of business receive Canadian ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 37 currency, might be subjected to as little inconvenience as possible, the Federal Reserve Banks were instructed to grant, whenever they felt justified in so doing, blanket licenses for such exportations, the licensee to make report of each shipment. From September 7, 1917, to December 31, 1918, the amount of Canadian currency exported under general authority granted by Federal Reserve Banks amounted to about $15,000,000. For some time exportations of silver to China were freely permitted in order to aid financing of importations to the United States. However, the silver situation in India becoming acute at a time when war conditions on the western front and in Mesopotamia made it imperative that a crisis in India should be avoided at all hazards, it was found necessary to restrict the private exportation of silver to the financing of importations of products which had been contracted for by departments of the Government. The extent of assistance rendered by the United States in meeting the demand for silver in India is shown as follows: Licensed for export Sept. 7, 1917 to Dec. 31, 1917 : To India To the United Kingdom Total J a n . 1, 1918, to Dec. 31, 1918 To India To the United Kingdom Total $20, 932, 565. 20 5,403,639.99 26, 336, 205.19 212, 310,188.15 39,035,375.00 251, 345, 563.15 The total amounts involved in licenses granted for the export of coin, bullion, and currency from September 7, 1917, to December 31, 1918, are: Gold, $128,688,515; silver, $351,316,000; currency, $105,056,568; an aggregate of $585,061,083. Details, showing countries to which these exports went, appear in the appendix. The Board was confronted with a difficult problem in passing upon applications to export gold to Mexico, for it was evident in view ot the gold premium in Mexico that our own stock of gold would be subjected to a heavy drain unless protective measures were adopted which would serve to curtail what appeared to be an insatiable demand. At the same time it was clear that if the exportation of gold to Mexico should be prohibited entirely, our nationals conducting large mining, oil, and other operations in Mexico, being forced to pay exorbitant prices for Mexican gold in order to comply with the reimportation requirements and decrees of the Mexican Government, that taxes, export duties, and import duties be paid in gold, would be forced to stop production which would prevent the importation of material and commodities necessary for the prosecution of the war. 38 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. The Board therefore adopted the policy of permitting exportation^ of gold to Mexico by mining companies to cover the reimportation requirements of the Mexican Government against new product of mine gold or silver exported to the United States, to the extent of 100 per cent of the value of gold and 25 per cent of the value of silver coming into the United States. By the return of this gold to Mexico the mine operators were able to use it for the payment of taxes, export and import duties, and to some extent wTages. The Board also decided, with respect to American oil interests in Mexico, that it would permit the exportation of a sufficient amount of gold to allow producers to pay their taxes and bar dues on oil exported to the United States, import duties on commodities necessary in their operations imported from the United States, and one-half of their pay rolls. Later on large amounts of gold having gone to Mexico on account of mine operators' reimportation requirements, exchange rates fell to such an extent as to enable producers to purchase in Mexico, at a moderate premium, the gold necessary for their requirements. The Board let it be known that while it preferred that the producers obtain in Mexico gold for their requirements, it stood ready to permit exportations of American gold whenever an excessive premium was demanded. With an abundance of American gold in Mexico, and with increased exports of various commodities from the United States to that country, there is no reason for United States currency to be at a discount in Mexico at a rate exceeding the cost of shipping gold, and for several months our currency has been circulating there with greater facility and in larger volume. F o r some time, in order to meet the wishes of the Food Administration and other governmental agencies, licenses were granted for the exportation of gold, to enable shippers of sisal, hides, cattle, bones, ixtle, garbanzos, and other miscellaneous commodities from Mexico to the United States, to pay Mexican export duties in gold as demanded by the Mexican Government, but conditions later became so changed, that, after consultation with the governmental departments and agencies interested, applicants were notified that exports of gold would not be permitted for paying export duties on miscellaneous commodities shipped to the United States, but that the Board would give favorable consideration to applications for permission to export United States paper currency other than gold or silver certificates for use in that connection. I n the execution of its policies, the Board has been mindful of both the national and the individual interest, but at the same time it has endeavored to retain in the United States gold which otherwise would have been exported. F o r the period September 7, 1917, ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 39 December 31, 1917, licenses were granted permitting gold exportat i o n to Mexico of $14,151,000, an average of $3,538,000 monthly. From J a n u a r y 1 to June 30, 1918, licenses permitting the exportation of $17,690,000 were granted, an average of $2,948,000 monthly; and for the period July 1 to December 1, 1918, licenses were granted aggregating $11,444,000, an average of $1,907,000 monthly, and during December the exports authorized amounted to $2,229,000. The Board has recently allowed considerable amounts of gold to go to Colombia, from which country we import during normal times between $6,000,000 and $7,000,000 worth of gold per annum, upon an engagement by the licensees that gold in the amounts exported will be reimported within 12 months. The Board has in all meritorious cases granted licenses for the exportation of United States currency other than gold and silver certificates, and it is interesting to note the extent to which our currency is being used in Canada, Mexico, Central America, and the West Indies. Permits for shipments to these countries and dependencies of more than $86,000,000 currency have been granted. Since the signing of the armistice the demand for gold has been far less urgent and a larger use of our currency in neighboring countries is evident. R E G U L A T I O N A N D CONTROL OF FOREIGN E X C H A N G E . EXECUTIVE ORDER. Executive order prescribing rules and regulations under section 5 of the trading-tvith-the-encmy act and supplementing rules and regulations heretofore prescribed under title 7 of the espionage act. Whereas, by virtue of the authority vested in me by the act approved June 15, 1917, known as the Espionage Act, I directed by Executive order, dated September 7, 1917, that the regulations, orders, limitations, and exceptions prescribed by me in relation to the export of coin, bullion, and currency should be administered by the Secretary of the Treasury, and upon his recommendation prescribed certain regulations in relation thereto; and Whereas, by Executive order, dated October 12, 1917, made under authority of the act aforesaid and of the act approved October 6, 1917, known as the Trading-with-the-Enemy Act, I vested in the Secretary of the Treasury the executive administration of any investigation, regulation, or prohibition of any transactions in foreign exchange, export, or earmarking of gold or silver coin or bullion or currency, transfers of credit in any form (other than credits relating solely to transactions to be executed wholly within the United States)1 and transfers of evidences of indebtedness or of the ownership of property between the United States and any foreign country or between residents of one or more foreign countries by any person within the United States, and I further vested in the Secretary of the Treasury the authority and power to require any person engaged in any such transaction to furnish, under oath, complete information relative thereto, including the production of any books of account, contracts, letters, or other papers in connection therewith in the 40 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. Whereas, by said Executive order, dated October 12, 1917, I authorized and directed the Secretary of the Treasury for the purpose of such executive administration to take such measures, adopt such administrative procedure, and use such agency or agencies as he may from time to time deem necessary and proper for that purpose; and Whereas, the Secretary of the Treasury, with the approval of the President, by order dated November 23, 1917, adopted certain administrative procedure for the executive administration, authority and power vested in the Secretary of the Treasury by said Executive order, dated October 12, 1917, and designated the Federal Reserve Board to act as the agency of the Secretary of the Treasury, subject to the approval of the Secretary of the Treasury, to carry out such executive administration, authority and power vested in the Secretary of the Treasury as hereinbefore recited: Now, therefore, upon the recommendation of the Secretary of the Treasury, • and in order to vest all necessary authority in the Federal Reserve Board to act as the agency of the Secretary of the Treasury, in the performance of the duties hereby imposed upon it, I hereby prescribe the following orders, rules, and regulations in respect of such executive administration, authority and power, and I hereby amend the regulations heretofore prescribed by said Executive order dated September 7, 1917, as herein provided. DEFINITIONS. Person.—The term person as used herein shall be deemed to mean an individual, partnership, association, company or other unincorporated body of individuals, or corporation or body politic. Dealer.—The term dealer as used herein shall be deemed to mean any person engaged primarily or incidentally in the business (1) of buying, selling, or dealing in foreign exchange, or (2) of buying, selling, or dealing in securities for or through foreign correspondents, or (3) any person who carries accounts or securities with or for foreign correspondents. Dealers of Class A.—Dealers who engage in the business of buying, selling, or dealing in foreign exchange, or of buying, selling, or dealing in securities for or through foreign correspondents, and who may or may not carry accounts or securities with or for foreign correspondents shall be known as dealers of Class A. Dealers of Class B.—Dealers who carry accounts or securities with foreign correspondents or who buy, sell or deal in securties through such correspondents but who do not carry accounts or securities for foreign correspondents and who do not engage in the business of buying, selling, or dealing in foreign exchange or of buying, selling, or dealing in securties for foreign correspondents shall be known as dealers of Class B. Dealers of Class C.—Dealers who carry accounts or securities for foreign correspondents or who buy, sell, or deal in securities for such correspondents but who do not carry accounts or securties with foreign correspondents and who do not engage in the business of buying, selling, or dealing in foreign exchange or of buying, selling, or dealing in securities through foreign correspondents shall be known as dealers of Class C. Foreign Exchange.—The term foreign exchange as used herein shall be deemed to mean checks, drafts, bills of exchange, cable transfers, or any form of negotiable or assignable instrument, or order used (a) to transfer credit or to order the payment of funds in any foreign country, or (b) to transfer credit or to order the payment of funds within the United States for foreign account. ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 41 Securities.—The term securities as used herein shall be deemed to mean all evidences of ownership of property not included in the foregoing definition of foreign exchange. Correspondent.—The term correspondent as used herein shall be deemed to mean any person who acts as the agent of, or for, or on behalf of, or as the depositary of, another person, or any person who is the principal for, or on behalf of, whom another person acts as agent. Customer.—The term customer as used herein shall be deemed to mean any person other than a dealer who buys foreign exchange from a dealer or sells foreign exchange to a dealer. TRANSACTIONS IN FOREIGN EXCHANGE A N D CERTAIN OTHER TRANSACTIONS PRO- HIBITED EXCEPT AS H E R E I N AUTHORIZED. All transactions in foreign exchange, export or earmarking of gold or silver coin or bullion or currency, transfers of credit in any form (other than credits relating solely to transactions to be executed wholly within the United States) and transfers of evidences of indebtedness or of the ownership of property between the United States and any foreign country, whether enemy, ally of enemy, or otherwise, or between residents of one or more foreign countries, by any person within the United States, except any such transactions or transfers conducted in conformity herewith, are hereby prohibited. T R A N S A C T I O N S I N FOREIGN E X C H A N G E OR I N S E C U R I T I E S FOR OR T H R O U G H FOREIGN ACCOUNT. Certain persons required to obtain registration certificates.—No person, other than a customer, shall, after February 10,1 1918, engage in any transaction or make any transfer described in the next preceding subdivision hereof who shall not have obtained, on or before that date, a registration certificate, as hereinafter provided. Every person who is a dealer upon the date hereof, as promptly as possible and in any event on or before January 31,a 1918, shall file, with the Federal Reserve Board, through the Federal Reserve Bank of his district, an application for a registration certificate. Such application shall be in form approved by the Federal Reserve Board and shall show the character of business engaged in and wiiether or not an enemy or ally of enemy of the United States or any subject or citizen of an enemy or ally of enemy, wherever resident or domiciled, has any interest directly or indirectly in such business. Such application shall. embody an agreement on the part of the applicant to comply with the regulations of the Federal Reserve Board, and to permit the inspection at any time of his books and accounts and to make reports as and when required on forms to be approved by the Federal Reserve Board. The Federal Reserve Board may issue to such applicant the appropriate registration certificate in form approved by it, entitling the holder to engage in the class or classes of foreign exchange or other transactions specified in such certificate, subject to all applicable provisions of law and to such Executive orders of the President and administrative regulations as shall have been issued or may from time to time be issued by the Federal Reserve Board. Any person who is not a dealer at the date hereof but who hereafter desires to become a dealer must first obtain a registration certificate. Any person, other than a customer, who does not desire to become a dealer but who nevertheless desires to engage in one or several transactions or to 1 Feb. 2 Under p o w e r of F e d e r a l Reserve B o a r d 15, 1918. Id., t i m e extended to Feb. 5, 1918. to waive requirements, time extended to 42 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. make one or several transfers described in the next preceding subdivision hereof, may be permitted by the Federal Reserve Board, in its discretion, to engage in any such transaction or to make any such transfer without first obtaining a registration certificate, and the Federal Reserve Board may likewise waive any requirement hereof, other than any which relates to trading with an enemy or ally of enemy, whenever it is satisfied that such waiver is not incompatible with <the best interests of the United States. Nothing herein shall be construed to abrogate or modify any existing requirement that licenses shall be obtained from the War Trade Board in respect of any transaction with, or for account of, an enemy or ally of enemy, or any person acting for, or on behalf of, or for the benefit of, an enemy or ally of enemy. Revocation of registration certificates.—Any or all such registration certificates may be revoked at any time by direction of the Secretary of the Treasury or of the Federal Reserve Board. Books and accounts.—Each Federal Reserve Bank through which any such registration certificate shall be issued shall furnish, to the applicant, copies of all forms of reports required and the books and records of such applicant shall thereafter be kept in a manner which will make it possible to furnish information called for in such reports without delay. General reports.—After obtaining a registration certificate, each holder thereof shall file with the Federal Reserve Bank through which such certificate shall be issued a report, on forms to be furnished by the Federal Reserve Board, showing all accounts or securities carried with or for foreign correspondents as of the close of business on January 30,1918, or on such other date as the Federal Reserve Board may require, and such other information as may be called for on such forms and shall thereafter file with the Federal Reserve Board, through such Federal Reserve Bank, on dates specified by the Federal Reserve Board, reports showing all changes in such accounts and all purchases, sales, and other transactions in foreign exchange or securities for or through foreign correspondents. Customers9 statements.—A dealer shall require every customer purchasing foreign exchange from him or selling foreign exchange to him to file a statement showing the purpose of such purchase or sale with such details as the Federal Reserve Board may require, including a declaration to the effect that no enemy or ally of enemy of the United States has any interest directly or indirectly in such purchase or sale. The Federal Reserve Board shall prescribe the form of such declaration. Copies of such statements shall be furnished by such dealer upon request to the Federal Reserve Board, through the several Federal Reserve Bank;s. Reports made through domestic correspondents.—Dealers to whom registration certificates have been issued, and who buy, sell, or deal in foreign exchange through domestic correspondents (for example banking or other institutions located in the United States), unless otherwise directed by the Federal Reserve Board, shall arrange with such correspondents to include such transactions in the reports of such correspondents. Such dealers will be required to report to the Federal Reserve Board only those foreign exchange transactions which are not included in the reports of such correspondents but may be called upon for any information in regard thereto desired by the Federal Reserve Board, and shall keep all books and records in a manner which will make it possible to furnish such information. Special reports.—Whenever any holder of a registration certificate shall have reason to believe that any transaction within his knowledge involves or ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 43 may involve directly or indirectly the payment of funds or delivery of securities to or the transfer of credit or securities for the benefit of an enemy or ally of enemy, or which may involve any other transaction with an enemy or ally of enemy, he shall immediately report the facts and circumstances to the Federal Reserve Board through a Federal Reserve Bank. Filing and verification of reports.—All reports, statements, and declarations herein required, unless otherwise specified, shall be filed with the Federal Reserve Board through the Federal Reserve Banks. Any or all such reports, statements, or declarations shall, in the discretion of the Federal Reserve Board, be verified by oath of the person making same. Examinations.—The books and records of all dealers must at all times be open to inspection by examiners designated by the Federal Reserve Board. DECLARATION OF FOREIGN CORRESPONDENT TRATION TO BE OBTAINED BY HOLDERS OF R E G I S - CERTIFICATES. After dates to be fixed by the Federal Reserve Board in respect of each foreign country, respectively, no holder of a registration certificate shall engage in transactions with, through, or for any foreign correspondent in such foreign country unless he shall have obtained from such correspondent a declaration to the following effect: Having arranged with to act as the agent or [Holder of registration certificate] correspondent in the United States for, or on behalf of, the undersigned, under regulations issued by the appropriate authorities of the United States Government and/or the undersigned having agreed to act as the foreign correspondent of the said I/we do hereby declare that I/we will not deal or attempt to deal, directly or indirectly, with said agent or correspondent in any transaction for or on account of, or for the benefit of, an enemy or ally of enemy of the United States, and will not make available for the use of an enemy or ally of enemy of the United States any funds or property received or credits established as a result of any transaction engaged in with or through said agent or correspondent, and will not transmit to said agent or correspondent for collection or credit any negotiable instrument bearing the signature or indorsement of an enemy or ally of enemy of the United States. The words " enemy " and " ally of enemy " are used herein as now or hereafter defined by laws of the United States or by Proclamation of the President of the United States. NOTE.—If foreign correspondent is incorporated this certificate must be executed by a duly authorized officer of such corporation. SUSPENSION OF RELATIONS WITH FOREIGN CORRESPONDENTS. If any foreign correspondent of a dealer in the United States or any person proposing to become the foreign correspondent of a dealer in the United States, shall refuse or fail to make the foregoing declaration as herein required, or if the Federal Reserve Board shall have reason to believe that any such foreign correspondent or any such person is dealing or trading with an enemy or ally of enemy of the United States, contrary to the provisions of the declaration of noninterest of enemies, herein required, or if in the judgment of the Federal Reserve Board the best interest of the United States requires such action, it may prohibit any dealer or dealers in the United States from engaging in any transaction with, through, for, on on behalf of such correspondent or such person. S U S P E N S I O N OF T R A N S A C T I O N S . Whenever the Federal Reserve Board shall have reason to believe that any transaction in foreign exchange or any transfer of securities carried with or for a foreign correspondent involves or may involve trading with an enemy, 44 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. or ally of enemy, or in its judgment is incompatible with the best interest of the United States, it may cause notice to be served on the parties in interest to postpone the consummation of such transaction for a period of ninety days pending investigation of the facts, and upon investigation if the Federal Reserve Board is of the opinion that the best interests of the United States require such action it may prohibit the consummation of such transaction. The Secretary of the Treasury may likewise prohibit the consummation of any such transaction by notice served on the parties in interest (either directly or through the Federal Reserve Board) in any case in which in his judgment the best interests of the United States require such action. S P E C I A L P E O V I S I O N S A S TO COLLECTION OF DIVIDENDS, I N T E E E S T OK M A T U R I N G G A T I O N S FOR FOREIGN OBLI- ACCOUNT. Every person presenting for collection maturing obligations, or coupons, checks or drafts issued for dividends or interest, for account of any foreign Government or person resident in any foreign country, shall make a declaration in form approved by the Federal Reserve Board, to the effect that such collections are not made for, or on behalf of, or for the benefit of, any enemy or ally of enemy; that the proceeds of such collections will not be made available for any enemy or ally of enemy; and that the maturing obligations, or the obligations and stocks upon which dividends or interest are to be paid, are not the property of any enemy or ally of enemy; have not been owned by, or held for the account of, any enemy or ally of enemy, since January 26, 1918, and were, not purchased by the present owner from any enemy or ally of enemy or from any person acting for or on behalf of or for the benefit of an enemy or ally of enemy since February 3, 1917. Provided, however, that any holder of a Class A or Glass G registration certificate, may collect maturing obligations and coupons, checks, or drafts issued for dividends or interest for account of a person resident in a foreign country, without making such declaration, if such holder has filed with the Federal Reserve Board a similar declaration executed by the person for whom collection is made. Interest or dividend checks payable for foreign account.—Every person issuing checks or drafts for interest or dividends after January 26, 1918, payable to any foreign Government or to any person resident in a foreign country shall attach to or shall print on the back of such check or draft the following statement: This check or draft will not be paid unless the following declaration is executed by the person to whom it is sent for collection by the payee, or his agent, or by the person who acts as the agent in the United States for the payee. From actual personal knowledge, or in reliance upon declarations or affidavits furnished the undersigned by the parties in interest, I/we do hereby expressly, declare that no enemy or ally of enemy of the United States is directly or indirectly interested in the proceeds of this check or draft and that such proceeds will not be made available for the use of an enemy or ally of enemy of the United States; that the stock upon which this dividend is paid (or the obligation upon which this interest is paid) is riot and has not been owned by or held for account of an enemy or ally of enemy of the United States since January 26, 1918, and has not been purchased by the present owner from an enemy or ally of enemy or from a person acting for or on behalf of or for the benefit of an enemy or ally of enemy since February 3, 1917. DEALINGS I N SECURITIES FOR OR T H R O U G H FOREIGN ACCOUNT. No person shall purchase, sell, or deliver any securities for account of any foreign Government, or for account of any person resident in a foreign country, unless such Government or such person, as the case may be, shall have made a ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 45 declaration, in form approved by the Federal Reserve Board, similar in effect to that required in the case of the collection of maturing obligations, for account of a foreign Government or person resident in a foreign country. PROCEDURE WHERE DECLARATION OF N O N I N T E R E S T OF E N E M Y OR ALLY OF ENEMY CAN NOT BE MADE. Any person who is unable to make a declaration of noninterest of enemy or ally of enemy required hereunder may apply to the Federal Reserve Board for a waiver of such declaration, submitting to such board all facts and circumstances relating to the transaction involved which are in the possession of the applicant. If upon investigation the Federal Reserve Board shall determine that there is no reason to believe that any enemy or ally of enemy is directly or indirectly interested in the transaction involved, and that its consummation will not be incompatible with the best interests of the United States, it may permit the transaction to be consummated without the declaration herein required. If the Federal Reserve Board shall have reason to believe that an enemy or ally of enemy is or may be directly or indirectly interested in the transaction, it shall transmit to the War Trade Board all records in the case for such action as that board may determine to be necessary. EXPORT AND E A R M A R K I N G OF COIN, B U L L I O N , OR CURRENCY. The following regulations prescribed by Executive order, dated September 7, 1917, shall continue in force as herein amended. Any person desiring to export from the United States or any of its territorial possessions to any foreign country named in the proclamation dated September 7, 1917, any coin, bullion, or currency, shall first file an application in triplicate with the Federal Reserve Bank of the district in which such person is located for a special or general license. Applications filed must contain statements under oath and showing in detail the nature of the transaction, the amount involved, the parties directly and indirectly interested, and such other information as may be of assistance to the proper authorities in determining whether the exportation for which a license is desired will be compatible with the public interest. All such applications should be made on the standard form prescribed by the Federal Reserve Board. Each Federal Reserve Bank shall keep a record copy of each application filed with it under the provisions of this regulation and shall forward the original application and a duplicate to the Federal Reserve -Board at Washington, together with such information or suggestions as it may believe proper in the circumstances, and shall in addition make a formal recommendation as to whether or not, in its opinion, the exportation should be permitted. The Federal Reserve Board, subject to the approval of the Secretary of the Treasury, is hereby authorized and empowered, upon receipt of such application and the recommendation of the Federal Reserve Bank, to make such ruling as it may deem proper in the circumstances; and if, in its opinion, the exportation in question be compatible with the public interest, to permit said exportation to be made; otherwise to refuse it. No gold or silver coin, or bullion, or currency shall be set aside and earmarked for safekeeping for any person without the written approval of the Federal Reserve Board. L I C E N S E S FROM WAR TRADE BOARD I N T R A N S A C T I O N S INVOLVING TRADING W I T H AN E N E M Y OR ALLY OF E N E M Y . Applications to the Federal Reserve Board for permission to export or earmark gold or silver coin or bullion or currency shall be accompanied by a certified copy of a license issued by the War Trade Board, whenever any such 46 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. transactions involve or may involve trading directly or indirectly with an enemy or ally of enemy or with any person acting for, or on behalf of, or for the benefit of, an enemy or ally of enemy. A P P L I C A T I O N S FOR REGISTRATION C E R T I F I C A T E S A N D EXPORT L I C E N S E S , PROVIDED FOR HEREUNDER, BY PERSONS RESIDING I N A N Y DEPENDENCY OF T H E UNITED STATES. Applications to the Federal Reserve Board either for registration certificates or for licenses to export coin, bullion, or currency may be made by persons residing in any dependency of the United States (including the Philippine Islands, Alaska, Guam, Hawaii, Porto Rico, Virgin Islands, and Canal Zone) through such agency located in any such dependency as may be hereafter designated by the Federal Reserve Board, instead of through a Federal Reserve Bank; but until an agency has been so designated in any such dependency, persons residing therein may make such applications through any Federal Reserve Bank. The Federal Reserve Board may from time to time postpone, in respect of any one or more of such dependencies, the date on and after which persons residing therein shall be prohibited from engaging in any of the transactions or making any transfer hereinbefore prohibited without having obtained registration certificates, in case such registration certificates can not be obtained on or before the date hereinbefore specified. (Signed) WOODROW WILSON. T H E W H I T E HOUSE, 26 January, 1918. The supervision and control of foreign exchange transactions is closely related to the conservation of gold, and the Division of Foreign Exchange of the Federal Eeserve Board was organized to enable the Board to carry out the provisions of the Executive o^der of J a n u a r y 26, 1918, and to cooperate with the Treasury Department in meeting the unusual problems in foreign exchange created by the war. - The work has been carried on under three divisions—administrative, research, and statistical. There are 91 employees in the division, exclusiye of the director and assistant director, whose services have been given without compensation. ADMINISTEATIVE DEPARTMENT. I n order to transact a foreign exchange business all " dealers " in foreign exchange, including bankers, brokers, exporters, and importers who maintain accounts in foreign countries or carry accounts for foreign correspondents, are required, under the terms of the Executive order, to register their names with the Division of Foreign Exchange of the Federal Eeserve Board, through the Federal Eeserve Banks of their respective districts. Under the system of reports required, together with the close relationship which has been developed with the cable censorship and the postal censorship in connection with communications covering financial transactions, it has been possible to exercise a control over the consummation of all foreign financial operations, while leaving the necessary freedom of action to " dealers." ANNUAL REPORT OF T H E FEDERAL, RESERVE BOARD. 47 Headquarters of the division were established in the Treasury Building in Washington, but the main office for the conduct of the work was located in New York City. This was necessary in order to enable the division to act promptly upon applications of " dealers " for permission to carry out certain operations required under the Executive order and the regulations issued in connection with it, as probably 95 per cent of the applications are made by New York " dealers." This arrangement has necessitated weekly trips by the director between Washington and New York, but the expeditious service required, because of the nature of the financial operations involved, could not have been rendered otherwise. Upon receipt of their registration certificates, " dealers," wTith a few exceptions, were authorized to carry on their foreign exchange transactions without reference to the Division of Foreign Exchange, provided reports were made on the prescribed forms. As the war progressed, however, it became necessary to require the approval of the director before a number of operations could be carried out, such as transactions in certain exchanges, the issuance of letters of credit, or the making of transfers of funds to cover the shipment of goods from one foreign country to another, the issuance of travelers' letters of credit in excess of $5,000, the issuance of credits to cover goods to be warehoused, which could not be exported or imported because licenses were unobtainable from the War Trade Board, the investment of American funds in foreign countries, action upon confirmations of cablegrams where the cables themselves had never been received, and arbitrage transactions. A t the outset, rulings under the Executive order were required in great number, in cases which called for immediate decisions in order to allow the continuance of legitimate business without interruption. As these requests also came largely from New York institutions, the establishment of the main office in New York City was found to be fully warranted. " Dealers" desiring to consummate transactions where approval is required beforehand, make application by letter, in duplicate, through the Federal Reserve Banks of their districts,- or direct to the Division of Foreign Exchange. Where approval can be given, it is stamped upon the duplicate letter, which is returned by the messenger from the " dealer" presenting the application. As such a large percentage of applications are made in New York, and practically all of such applications come from " dealers " situated in cities where there are Federal Reserve Banks which can communicate with the director by telephone or telegraph, this system has enabled transactions to be consummated without delay, wherever approval could be given without extended investigations made necessary by the national interest. When enemies or allies of enemies have been 48 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. involved, delays have been unavoidable, but even in such cases, where the interests of the United States were not jeopardized, nor the enemy benefited through the carrying out of the transactions applied for, and when it has been of value to our nationals to have" them consummated, authority to operate has been extended after receipt of license from the W a r Trade Board or proper release from any other department of the Government which might be concerned. RESEARCH BUREAU. A research bureau has been established and developed as an aid to all bankers and other " dealers " who have been desirous of following the letter and spirit of the Executive order of the President and of the trading with the enemy act, and who otherwise would have been unable, in many cases, to determine with certainty whether or not it was in order for them to transact business with many foreign and American houses which had approached them, or where transactions for unknown persons were going through them. To protect such" dealers," and also the interests of the country, the research bureau has been developed as a sort of clearing house for all other governmental research bureaus, in so far as the work of these agencies concerned persons or institutions attempting to carry out financial transactions. Frequently, reports in the files of different Government bureaus, when compared, have been found to be contradictory. I n all such cases efforts were made to ascertain the facts, and the bureau having incorrect information has been notified. The research bureau has access to all source books published by the allied Governments, and is also in direct touch with all United States Government departments of information and research. Direct private telephone and telegraph wires connect the bureau with several of the Government agencies and bureaus, and personal representatives of the Division of Foreign Exchange are stationed with others. The division also has personal representatives in all of the cable censorship offices in the country. The representative of the division in the New York office of the cable censor is also the head of the financial division of the censorship, and he is called into conference in the Division of Foreign Exchange daily. I n addition to these regular connections, consultation has been had, when necessary, with the Shipping Board, the W a r Industries Board, the W a r Trade Board, and the Departments of State and Treasury; also with representatives of foreign governments. With these connections the research bureau has been in position at all times to obtain immediately the latest information bearing on persons or institutions in all parts pi the world whose transactions have been brought before it. The administrative department has thus been enabled to make prompt decisions on important financial ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 49 transactions in all cases except where further research was necessary before suspected parties could be cleared or proved to have enemy connections or interest. The information received from all other governmental departments is brought together in the research bureau of the Division of Foreign Exchange and filed. Under this system it has been possible to stop many transactions which might have been of value to the enemy and to afford constant protection to bankers and other " dealers " in the United States who might otherwise have inadvertently carried out transactions for enemy account. I t has also been possible to turn over many cases to the Alien Property Custodian. When cablegrams are suppressed, it is essential, if such suppression is to be effective, that their confirmations also be suppressed, and all confirmations of cablegrams from " dealers " in the United States have been censored through the research department. Such confirmations have averaged about 2,000 a day. Under the regulations " dealers " in the United States are obliged to apply to the director of the Division of Foreign Exchange for approval before they can act upon any confirmations of cablegrams which are received by them and which refer to cablegrams that have never reached them. Copies of all suppressed cablegrams concerning financial matters are delivered to the head of the research bureau each day, and all names of senders, receivers, beneficiaries, or others mentioned in the cablegram are investigated at once. Application is made to the proper department for release of cablegrams before receipt of the confirmations, if it is found that the transactions themselves can not be harmful to the national interest, even though some of those connected with the transfers may have been of doubtful standing, and the work of obtaining proof in doubtful cases is well under way long before " dealers " receive their confirmations and apply for permission to act under them. Through this system it has been found possible to release great numbers of cables covering important transactions, whose temporary suppression might have been fully justified, but where later investigations showed that their delivery was not incompatible with the interests of the country. The concentration in the research bureau of intercepted letters received from the postal censorship, and intercepted cables from the cable censorship, together with information from the other sources outlined, has been of great value in determining the status of many persons and institutions whose names have come up because of their participation in foreign financial transactions. I n cases where those concerned in a cablegram can not be cleared 90-day postponement notices are served on " dealers" applying for permission to consummate the transactions, and if when the time has 100823°—19 4 50 AKNUAL REPORT OF THE FEDERAL RESERVE BOARD. elapsed it is still impossible to clear all names, a prohibition notice is issued by the Federal Reserve Board. The activities of the administrative and research departments are indicated by the fact that an average of 400 pieces of mail are handled in the filing room each day, and that more than 40,000 letters of correspondence and 12,000 letters concerning credits or remittances are on file. Under the Executive order, all foreign correspondents of American " dealers " are obliged to sign a declaration agreeing not to carry on any business through or for their American correspondents for account or benefit of an enemy or ally of enemy. Such declarations, when received by American " dealers," have been filed with the Division of Foreign Exchange, and all names have been researched for the purpose of checking up the standing of the foreign correspondents of American " dealers " in connection with their attitude toward transactions for account of enemies or allies of enemies. More than 150,000 of such declarations have been received, checked, and filed for ready reference in addition to more than 50,000 declarations of nonenemy interest in securities. A large number of foreign correspondents did not forward declarations. From intercepted correspondence and reports received from " dealers," it was found that in a large percentage of cases the declarations were not signed because the foreign correspondents were allies themselves, and seemed to look upon the matter as one not concerning them, apparently not understanding that this requirement has been written into the law of the United States. Steps have been taken to correct this misunderstanding, in order that no injustice may be done to anyone who may have ignored the request of " dealers " for declarations in good faith, based on the thought that they were not concerned. Another form of declaration has been required from foreign holders of American securities desiring to collect dividends, interest or maturing principal, or to sell their securities in the United States. I n addition to covering the usual statement regarding noninterest of enemies or allies of enemies, this form included the statement that foreign-held securities had not been enemy owned since February, 1917. These declarations are also filed with the Division of Foreign Exchange, and the names of the signers of the declarations are researched in the same manner as those of the foreign correspondents of American "dealers." This requirement has unquestionably deterred many enemy nationals owning American securities from endeavoring to sell them or collect income upon them. Another regulation which required careful checking in the research department covered deposits made with American banks in ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. 51 dollars for account of foreign correspondents. Transfers of funds for enemy account could be accomplished so easily through the deposit of money to the credit of foreign correspondents with American banks or other " dealers,55 for account of some neutral cloak in a foreign country, that all such deposits are required to be accompanied with information as to the name of the original party requesting the deposit, the purpose of the deposit, the name of the foreign beneficiary, and the party for whose account it is to be received in the foreign country. This information has been filed with the Division of Foreign Exchange daily by American " dealers,' 5 and the names of all persons concerned are researched for the purpose of uncovering enemy connections or interest, in case of their existence. While there is no doubt that, through the use of cover names and other means, enemy transfers have been constantly made, yet there is every reason to believe that the regulations of the Division of Foreign Exchange have resulted in their being reduced to a minimum, and that any extended operations for enemy account have been made impossible. Through its ambassadors and ministers the State Department has been constantly informed of the operations of American " dealers 55 with foreign institutions, where enemies or allies of enemies have been involved. All such operations have been investigated through the research department, after which proper action has been taken by the administrative department. I t speaks well for bankers and other " dealers 55 in the United States to be able to report that investigation has shown conclusively, with few exceptions, that since the United States entered the war there has been no intent or purpose on the part of Americans involved to act contrary to the letter and spirit of the law, nor to carry out transactions which might be of benefit to the enemy. STATISTICAL 55 DEPARTMENT. " Dealers holding registration certificates authorizing them to do a fpreign exchange business are required to make weekly reports at the close of business each Wednesday of all their foreign operations, giving balances due them from each country of the world and balances held by them for account of each country of the world. Records of " dealers " registrations are made in the statistical department. On December 1, 1918, 13,653 banks, bankers, exporters and importers, and others had applied for and received registration certificates. Of this total 10,208 are " dealers 55 of class A, who are authorized to do a regular foreign exchange business with the public, 2,087 are " dealers 55 of class B, under which authority is extended to carry accounts with foreign correspondents, but not to sell, exchange, or deal with the public, and 1,358 are " dealers 55 of class C, 52 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. who are authorized to carry accounts in the United States for foreign correspondents, but are not authorized to trade with the public. Kegistered " dealers " divided as to Federal Reserve districts are as follows: District. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total Class A. Class B. Class C. 711 820 37 23 4 8 315 740 984 473 710 247 211 2,091 282 2,491 742 190 1,067 . 161 1 3 4 10,208 2,087 376 812 20 1 2 6 127 2 Total. 1 2 9 1,827 2,616 530 734 253 225 2,533 264 2,652 744 195 1,0S0 1,358 13,653 I t will be noted in the foregoing table that in the Minneapolis, Chicago, and San Francisco districts there are more " d e a l e r s " of Class A than in the New York district. This is due to the large number of bankers in small towns who have arranged with their metropolitan correspondents to draw drafts against their foreign accounts over their own names. About 9,500 of the 10,208 Class A " dealers " operate in this manner. This system enables bankers in country districts throughout the United States, as well as in towns and cities, to extend a foreign exchange service to their customers when there is any demand in their localities. Of the Class A " dealers" 708 do a direct foreign exchange business, while 160 of the 708 Class A " dealers " have such an active foreign exchange business that they are required to make reports every week. Of this number the foreign business of 65 is confined to Canada and Mexico, while the other 95 do more or less of a world business. All of these " dealers " are required to make reports to the Division of Foreign Exchange covering their financial foreign exchange operations. " Dealers " of the different classes are supplied with forms prepared especially for their business and from which are assembled in the Division of Foreign Exchange such statistics as are desirable. Banks which transact foreign exchange business through metropolitan correspondents make their reports through these correspondents. The reports divide the operations into different classes, designed to place before the administrative department a clear statement of developing conditions. The classes of particular interest are those covering exports and imports and arbitrage. While reports of the purchase and sale of demand and cable transfers between " dealers " are interesting in showing the volume, yet as one " dealer " buys and another " dealer" sells, the relationship between the United States ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 53 and other countries of the world is not changed, as is true when exports, imports, and arbitrage transactions are recorded. A number of subclassifications are made, where the amounts involved are smaller, such as dealings in securities, coupon and dividend checks, gold and silver shipments, remittances to cover freights and insurance, income taxes, etc., and purchases of exchange for the use of travelers. The causes for the change in balances between the United States and each country of the world as they occur from week to week are clearly defined, and the trend of conditions is readily followed. Balances for and against the United States with the other countries of the world have never been made public for reasons which are selfevident. There are certain interesting figures, however, to which reference may be properly made. The total purchases and sales of demand and cable exchange between " dealers " in the United States from February 20, 1918 (when the Executive order went into effect), to December 31, 1918, were $5,158,943,148, and of this total $3,737,754,469, or 72.45 per cent, were for exchange on Great Britain. Trading in demand and cable exchange between American " dealers " in such large totals shows the free competition which exists in this country in the foreign exchange business, and is most interesting on that account. The total exchange from all sources on all countries of the world purchased by American " dealers " for the same period was $6,603,811,628 and the total sales $6,639,103,540, of which 55 per cent represented dealings in sterling. No other figures would seem to be required to show the relative world financial position which Great Britain holds, but the statement of arbitrage operations is also illuminating in this respect. Exchange on Great Britain w^as sold to the United States by foreign countries to the equivalent of $554,108,000 and exchange on Great Britain was purchased from American " dealers " by foreign countries to the total of $480,239,000. Of these amounts British banks supplied the United States with the equivalent of $297,849,000 in pounds sterling against dollars credited to them, which were undoubtedly largely used to pay for imports from the United States to Great Britain, whereas British institutions bought from American banks sterling with dollars to the equivalent of only $109,969,000. Some of these transactions were undoubtedly carried out at the instance of foreign banks in other countries which operated through Great Britain, but proof of this is available only from British records. On balances of sterling exchange bought from and sold to the United States by the whole world, excepting through Great Britain itself, the sale of sterling exchange by the United States exceeded the purchase of sterling exchange by the United States by $114,011,000. The principal countries which purchased more ster 54 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. ling exchange from the United States than they sold were France, Greece, Holland, Italy, Spain, East Indies, Straits Settlements, Chile, Colombia, Ecuador, Uruguay, Canada, Central America, and the West Indies. The principal countries selling the United States the greatest amount of sterling exchange on balance were Norway, Portugal, Sweden, Switzerland, China, India, Japan, Argentina, Brazil, Peru, Africa, and Australasia. While no figures are available prior to the formation of the goldexport committee of the Federal Reserve Board, there is reason to believe, from reports received, that sterling exchange was sold in this market by foreign countries in a large way. Since the embargo, as gold could not be obtained for sterling exchange sold in the United States, such operations have been confined to more natural channels, based on current trade rather than on previously accumulated balances. This situation is particularly noticeable in connection with the arbitrage of the exchange of the neutral countries of Europe, which have ruled at a high premium, -and it is found that the United States has obtained a greater total in such exchanges from Great Britain than it has furnished. The relative figures for the period given are as follows: Purchased by! Sold by United States United States from Great j to Great Britain. Britain. Holland guilders.. Norwegian kroner Swedish kroner... Spanish pesetas.. Swiss francs $6,721,000 4,392,000 5,379,000 13,324,000 4,806,000 $2,947,000 1,738,000 1,349,000 914,000 2,374,000 Instead of our having furnished Great Britain with these highpriced exchanges, Great Britain has actually given us an excess on balance. On the other hand, we have purchased from these countries exchange on Great Britain greatly in excess of our sales of sterling exchange to such countries. I t is largely due to this fact that the exchange rates on the neutral countries mentioned ruled against the United States. For instance, during the first three-quarters of the year, Spain sold the United States $12,143,000 in sterling exchange, and purchased from this country $8,531,000 in sterling* exchange, a difference of $3,612,000. This difference affected the rate for Spanish pesetas in the United States, even though, strange as it may seem, such difference was more than offset in the case of Spain by the purchase on balance from Great Britain of the equivalent of $6,593,000 in pesetas, which, of course, affected the rate in the opposite manner. This left an equivalent of $2,981,000 gained by the United States in arbitrage transactions with Spain and Great ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 55 Britain. I n the last quarter of the year Spain sold the United States less sterling than she purchased and increased her purchases on balance from Great Britain, so that the total gain by the United States for the year was $14,146,000. The effect of these particular transactions as a whole, therefore, was favorable to the United States dollar. The two operations are distinct in this respect—in one case American " dealers" purchased from British banks neutral exchanges when they were required to a greater extent than the British banks bought the same exchanges from American banks, while in the other case the banks of neutral countries sold American banks more sterling exchange than they purchased from them. Such transactions were not based upon the attempt of any " dealers " concerned to advance or depress the exchange on any country, but were undertaken because of the relation of demand to supply, and both classes of operations affected the rate for the foreign exchanges in the United States, even though one was carried out in the moneys of the foreign countries and the other in American dollars. By refusing to allow American " dealers" to purchase sterling exchange from other countries, this situation could have been positively controlled, but the harm that would have resulted would have been far greater than the good accomplished, and such prohibition would also have been most detrimental to our foreign financial position long after peace had been restored. I t is most fortunate, therefore, that it proved possible to meet every emergency without the necessity of having to restrict the arbitrage of exchange. As reports were not filed before the Executive order of the President of January 26, 1918, it is impossible to determine with certainty exactly what expansion has occurred in the foreign business of the United States, but from the consensus of opinion of many of the principal foreign bankers who have expressed themselves, it would appear as though arbitrage operations, as carried out by bankers and other " dealers " in the United States, before the beginning of the war, August 1, 1914, were practically confined to what were then the three principal commercial countries of Europe, with the occasional purchase, almost entirely through London, of other exchanges, when required for special purposes. Since the war American " dealers " have had arbitrage operations with practically every commercial country, of the world, as shown by figures covering actual transactions between February 20 and December 31,1918. The total of such transactions shows $876,240,000 in foreign exchanges purchased from other countries by the United States and $689,565,000 in foreign exchanges sold to other countries by the United States. Another phase of our foreign financial transactions which has shown remarkable growth is represented in the activity of the dollar accounts of foreign banking institutions in the United States. Dur 56 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. ing the period referred to, combined debits and credits to such accounts from European allied countries were $25,993,542,466 (these extraordinary figures were largely due to loans made by the United States Government), from European countries other than those of our allies $2,468,719,572, from Asia $2,802,093,807, South America $1,916,337,532, Central America and Mexico and the West Indies $2,344,246,605, Africa $7,580,068, Australasia $36,915,188. Many of these transactions represent the purchase and sale of securities in the United States for account of foreigners interested in our market. Other large transfers represent payments against shipping documents or warehouse receipts, as many foreign countries; have been buying goods in the United States through the payment of dollars which have accumulated here, instead of through sterling, as before the war. The proceeds of exports to the United States from countries having balances with American " d e a l e r s " have also been credited to accounts in this country. Many of the neutral countries of Europe have used balances which have accumulated here for the purchase of British securities, and in large amounts. T r a d i n g in securities in United States markets by foreign interests, both through dollars and foreign moneys, has been large, and for the period covered purchases were made for foreign account to the value of $442,396,000, and sales for foreign account to the value of $355,894,000. The excess in purchases was of American, British, and French securities. Securities held in America for foreign account at the close of business December 31, 1918, amounted to $1,824,351,000 and securities held abroad for American account $97,478,000. Commodities held in warehouse in the United States at the close of business September 26,1918, which had been purchased and placed in warehouse for foreign account before July 1, 1918, in many cases extending back almost to the beginning of the war, amounted to $69,258,097, and commodities which had been imported to the United States for foreign account previous to July 1, 1918, but which were still held in warehouse undistributed, either in this country or through reexport, amounted to $31,078,841, or a total of $100,336,938. After the report for the final quarter of the year is received, and the figures for the whole year can be compiled and compared with estimated averages for the first few weeks of the year before the Executive order went into effect, the foreign business of the United States can be analyzed as a whole very completely, and the trend of operations before and since the armistice can be shown, all of which should be of great value in determining whether we are to hold the world-wide financial development made possible by the war. A further analysis of these reports for a few quarters following the signing of the peace treaty should give an even clearer idea of A N N U A L REPOKT OF T H E FEDERAL RESERVE BOARD. 57 the part this country is to play in the world's finances during the period of world reconstruction, and possibly afterwards. Before undertaking any operations in foreign exchange with persons in the United States other than " dealers," it is necessary for such " dealers" to require their customers to sign the following statement: This transaction is made under representation by the undersigned that there is not involved in connection therewith any trading, directly or indirectly, with, to, from, for, or on account, behalf, or benefit of any enemy or ally of enemy, of the United States, or any transaction violative of the trading-with-the-enemy act of the United States. All transactions covered in the reports of " dealers " to the statistical department of the Division of Foreign Exchange must have been consummated under the terms of these statements, when the operations have developed in this country, or under nonenemy declarations of foreign correspondents when they have originated outside of the United States. A statement of nonenemy interest, therefore, has had to stand before the creation and at the consummation of every transaction between the United States and every foreign country. COOPERATION W I T H T H E TREASURY DEPARTMENT. The administrative department has constantly cooperated with the Treasury Department in carrying on foreign-exchange operations, and in the supervision or regulation made necessary to protect the interests of the United States. Many such matters have been handled in conjunction with the Federal Reserve Bank of New York, which has acted, when necessary, for account of all of the Federal Reserve Banks. COMMODITIES. A careful study of the whole world exchange situation, made possible through the reports filed with the Division of Foreign Exchange, led to the belief that in view of the restricted shipping facilities, adjustments in our export trade could be made, which would be most beneficial. As ships available to obtain needed imports could also be used on exports to the same countries from which imports were obtained, it was clear that if the average export cargo exceeded in value the average import cargo, the exchange would begin to turn toward the United States, and that an excess of foreign exchanges would be accumulated that could be made to make purchases for allied account. With the view of developing this situation, an arrangement was made by the director of the Division of Foreign Exchange for meetings to be held with a representative of the W a r Industries Board, 58 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. a representative of the W a r Trade Board and the Exports Control Committee of the National Foregin Trade Council. A n intensive study was made of the weight and bulk values of such goods as were desired by foreign countries, those of South America being first considered. As a result, the W a r Industries Board agreed to consider requisitions which might be made by the Treasury Department for commodities for export, in the same light as requisitions made by the W a r Department and the Navy Department to cover their needs. The development of the whole plan was based entirely upon war requirements, and not upon the* expansion of our foreign trade, as it was recognized that the business of the country at the time was to win the war rather than to develop commerce. The cooperation of the committee of the National Foreign Trade Council in this connection was most valuable, and if the armistice had not intervened there is good reason to believe that in a short time the trend of exchange might have turned very materially in favor of the United States in the case of a number of countries where imports for war purposes were required. Even though an armistice has been declared, the work accomplished by this committee, together with the vast amount of data compiled by the W a r Trade Board, should be most valuable to the country, and should be particularly helpful after peace has been proclaimed and present restrictions upon the world's commerce are removed. FEDERAL RESERVE BANKS. The Federal Reserve Banks of the 12 districts have acted as local agents for the Division of Foreign Exchange in receiving applications for registration certificates by banks, bankers, and others who wished to do a foreign exchange business in collecting weekly reports of foreign exchange operations, in passing upon applications of " dealers " for permission to transact business requiring approval, in obtaining reports on institutions and individuals when occasion required, and in carrying out the many special duties growing out of the Executive order and its regulations. This work, which, in the case of many of the Federal Reserve Banks, was very exacting, has been performed most efficiently, and the cooperation of the Federal Reserve Banks has been effective in every particular. Bankers and other " dealers " have at all times manifested a desire to abide by the regulations made by the Division of Foreign E x change. While it is possible that some " dealers " may have been unwilling to undertake operations for enemy account, because of their knowledge that if they did so, and were discovered, they would be prohibited from continuing their foreign exchange business for the period of the war, and while this fact was one of the important safeguards provided the country by the Executive order, yet on the whole A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. 59 the voluntary and patriotic cooperation of " dealers" has been a constant source of satisfaction. The great banking institutions which transact the bulk of our foreign exchange business have cheerfullysubordinated profits to the national interest. BANKS ORGANIZED FOR TRANSACTING FOREIGN BUSINESS AND FOREIGN BRANCHES OF MEMBER BANKS. The foreign trade of the United States, already large, is expected to assume far greater proportions upon the reestablishment of peace. Preparations have already been made for the proper financing of our foreign business. Member banks, by means of foreign branches, and American banking corporations, organized to conduct a foreign business, have reached out into other countries, mainly in Central and South America and the Orient, with a view of competing with British and continental banks which have long controlled the larger part of their international trade and banking. Under section 25 of the Federal Reserve Act, the stock of American banking corporations, principally engaged in international or foreign banking, is made eligible for purchase by national banks having capital and surplus of $1,000,000 or more to an amount not exceeding 10 per cent of their capital and surplus, if such corporations enter into agreements with the Federal Reserve Board by-means of which the Board can regulate their operations and keep generally informed as to their condition. U p to the present time five such institutions have filed agreements defining the operations to be engaged in and relating to the amount and character of their investments, deposits, acceptances, and reserves. The corporations with which agreements have been made a r e : Capital Resources 'Affiliated and surplus! (head office) institu- Branches. Agencies. Dec.31,1918. Dec. 31,1918. tions. American Foreign Banking Corporation, New York City Mercantile Bank of the Americas, New York City First National Corporation, Boston, Mass Asia Banking Corporation, New York City International Banking Corporation, New York City $4,405,000 $22,345,000 4,525,000 2,250,000 2,500,000 24,486,000 15,039,000 3,780,000 6,500,000 3 57,957,000 2 21 i With more than 20 offices. 2 In New York City. June 30,1918, figores, including branches, $102,322,000. 3 The branches and agencies located in foreign countries are subject to the laws of the country in which located, and in order to be able to compete with local banks, are permitted to follow in general the local banking practice. The American Foreign Banking Corporation, the first to file an agreement with the Board, has acquired or established branches in 60 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. the Canal Zone, Panama, and Haiti and the establishment of other branches has been authorized. These branches do a general banking business. The Mercantile Bank of the Americas has expanded through the control of autonomous banks in several of the countries of South and Central America—Brazil, Peru, Venezuela, Nicaragua, and Colombia. Branches have been opened in P a r i s and Barcelona and agencies in five of the Latin American countries. I n addition to receiving local deposits, making discounts, and dealing in foreign exchange, these affiliated institutions promote trade by bringing together buyers and sellers acting merely as intermediaries without assuming any market risks themselves. This bank was organized in 1915 by private banking firms in New York, but now numbers among its stockholders several of the large member banks of the Federal Reserve System. The entire stock of the First National Corporation of Boston is owned by the First National Bank of that city. A t the present time this corporation has no foreign branches, but intends to establish them as its business develops. An office, doing a purely discount business, is now maintained in New York City. During the past year this corporation has been of considerable assistance in facilitating import and export trade with South America, the F a r East, and "West Indies, and also with European countries. The Asia Banking Corporation was organized only recently, but plans to engage in a general international and foreign banking business in China, in the insular dependencies of the United States, and, ultimately, in Siberia. I t contemplates opening branches in Shanghai, Harbin, Hankow, Tientsin, Peking, and Vladivostok. The stock of this corporation is owned largely by member banks. The International Banking Corporation is the oldest of the banking corporations which have filed agreements with the Board, having opened its first branch in Shanghai in 1902. Practically all of the capital stock of this corporation is owned by the National City Bank of New York. I t s field of operation covers mainly the Orient— India, China, Japan, the Philippines, and the Malay Archipelago— Central America, and the West Indies, with a branch in London. I t also has an office in San Francisco. I t is engaged principally in financing the export and import trade centering at the places where its branches are located. At the present time there are only two national banks having foreign branches—the National City Bank of New York and the First National Bank of Boston. The National City Bank has 21 branches in South America, Cuba, Porto Rico, Russia, and Italy, and has also a representative in Copenhagen. The Board has recently authorized it to establish branches ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 61 in Belgium, Switzerland, Portugal, and Spain. These banks, while branches of an American bank, perform the functions of local banks under authority of local law of the countries in which they are established, and transact a general banking business in their respective localities. The First National Bank of Boston has one branch in Buenos Aires, opened in July, 1917. The facilities afforded,by this branch have been devoted mainly to financing our trade in wool and hides with the Argentine. Among the State member banks having foreign branches are the Guaranty Trust Co. of New York, the Equitable Trust Co. <of New York, and the Farmers Loan and Trust Co. of New York, all of which have offices in both England and France, and agencies throughout the world. The Board takes this occasion to renew the recommendation made in its last annual report that section 25 of the Federal Reserve Act be amended so as to provide for the Federal incorporation of banking associations engaged solety in international and foreign banking, stock of which is to be owned by national banks and which will operate under the control of the Federal Reserve Banks. The language used in section 25 seems to indicate the intention of Congress to permit such banks to be organized under the laws of the United States. Many national banks have become stockholders in banks which have been organized under State laws fo*r the purpose of carrying on a foreign banking business, in accordance with the terms of section 25. The arguments in favor of Federal incorporation are— (a) The dual control exercised by the Federal Reserve Board and by the State banking departments is liable at any time to cause embarrassment, or may operate to restrict the activities of the banking corporation. (&) A banking corporation of this description being essentially a national enterprise whose stock is owned by national banks having been authorized by an act of Congress, would seem to be entitled to the benefits and protection of a Federal charter, which would undoubtedly be of great value in competing for business in foreign countries. Attention is called also to the fact that other countries are now devoting particular attention to meeting their demands after the war, as regards financial facilities for trade, and the financing of large overseas contracts. A committee which was appointed sometime ago at the instance of the British Board of Trade, recently recommended the establishment of an institution having in view primary objects as follows: 62 ANNUAL REPORT OE T H E FEDERAL RESERVE BOARD. (a) To afford advice and financial assistance to British commercial and industrial undertakings from their inception and generally to further the developments of British trade industry and commerce. (5) To make advances for the enlargement of works and the extension of plant and for the amalgamation and coordination of works and business with a view to effecting economies in the cost of production. (c) To render financial assistance in connection with transactions involving long periods of credit. (d) To assist in obtaining orders from abroad for British manufacturers and traders and to grant financial facilities for the execution of such orders, especially when such orders are intended to be executed in the United Kingdom. (e) To undertake credit operations and to draw and accept bills. (/) To acquaint themselves with the conditions of trade and with the business requirements of all countries of the world and to enter into banking-agency arrangements in such countries with Colonial or British foreign banks or where necessary to open up branches and agencies in such countries. (g) To establish, equip, and maintain information bureaus in close touch with the Department of Commercial Intelligence of the Board of Trade for furnishing British merchants and manufacturers and the business community generally with reliable data and information upon openings for trade, new contracts, State and other loans, and issue proposals, and generally upon all matters relating to foreign trade and business and to undertake the examination of industrial projects. (h) To act as an agent for carrying through overseas commercial and financial transactions in which the British Government may be interested and to receive official recognition and assistance. (i) To undertake trading operations and business on their own account or jointly with others either through the medium of syndicates or otherwise. There does not seem to be anything to prevent American foreign banks from engaging in the operations above outlined with the possible exception of undertaking trading operations in business on their own account or jointly with others in such operations, through the medium of syndicates, but in the opinion of the Board all charters granted to banks engaging in such extensive operations should be uniform, and uniformity can best be assured through a Federal charter. D I V I S I O N OF A N A L Y S I S A N D R E S E A R C H . A t the time of its organization, the Board created a Division of Eeports and Statistics, which has collected and tabulated information from all available sources relating to economic and financial questions. ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. 68 Due to the constantly increasing volume of business of the Federal lieserve Banks, this division has necessarily been more and more occupied in the compilation of figures which relate to the operations of the Federal Reserve Banks rather than to banking questions in general. F o r some time it has been evident that the work of the statistical division should be supplemented, and that the Board should have some agency to assist it in the work of scientific research. Accordingly, the Division of Analysis and Research was created on September 1, 1918. While much of the work which would ordinarily fall to this division is now being handled in an administrative way by the Division of Foreign Exchange, the active operations of that division will cease when peace has been officially proclaimed. The principal work which has been carried on by the Division of Analysis and Research since its inception is— (a) Collection, classification, analysis, and interpretation of regular data relating to the condition of the Federal Reserve System, including both Federal Reserve Banks and member banks, and to business and other conditions affecting the banking and business situation, such work, however, not superseding or taking over that done by the Division of Reports and Statistics. (5) Planning and outlining of inquiries into banking, financial, and other conditions, such inquiries being intended to throw light upon the general management and administration of the Federal Reserve System. (<?) Undertaking of special inquiries on topics referred by the Board to the division for special investigation and report. (d) Preparation of data for the Federal Reserve Bulletin and making provision for collecting additional material from outside sources. (e) Compilation of statistics showing changes in business conditions and in volume of production. The headquarters of the division are at the offices of the Board at Washington, but a working office is maintained in New York. Its work is supervised by Dr. H . Parker Willis, formerly secretary of the Board, as director. The director has, been able to obtain the assistance of graduate students in economics and finance, to whom a nominal compensation is paid. The work at present is on a comparatively small scale, and may be regarded merely as a nucleus of what may eventually be undertaken by the division. The total cost of the division, including the Board's business index reporting system, is less than $1,300 per month. 64 ANNUAL, REPORT OF T H E FEDERAL RESERVE BOARD. The Board does not contemplate any rapid expansion of the work of the division, believing that it should be developed gradually as the results obtained appear to justify the effort and cost. NEW BANKING STATISTICS. Through its Division of Reports and Statistics, the Board has added to its statistical information by procuring, each week, figures showing the more important items on the balance sheets of member banks in leading centers throughout the country. I t is also securing through various clearing house associations, figures which are published every week showing the total of checks paid by clearing house members. The Board believes that the balances as reported by the clearing house associations do not always furnish a true index of banking conditions, while the aggregate of checks paid, including a separate statement of customers' checks, and those drawn by banks and bankers, will, it is thought, portray more accurately the trend of business and will furnish a better basis for comparison month by month and year by year. C A P I T A L ISSUES C O M M I T T E E . I n his annual report to Congress for the year 1917, the Secretary of the Treasury referred to the importance of avoiding unnecessary capital expenditures in both public and private enterprises. While no specific authority had been conferred upon the Secretary or upon the Federal Reserve Board to-approve or disapprove new undertakings, a number of corporation executives, bankers, and municipal officials submitted plans for new enterprises, and thereupon the Secretary of the Treasury requested that all persons contemplating offerings of securities for sale or subscription, first submit them for an expression of opinion as to the compatibility of the proposed issues with the national interest. Tentative offerings increased to such an extent that it became evident that an organization of some kind would be necessary to pass upon them, and in a letter dated January 11, 1918, Secretary McAdoo requested the Federal Reserve Board " as another patriotic service, to assume the responsibility of passing upon such proposals as may be submitted, both in respect to capital expenditures or issues of new securities." The Board appointed Messrs. Paul M. Warburg, chairman, Frederick A. Delano, and Charles S. Hamlin a committee of its members to undertake the work. The committee enlisted the services of a voluntary advisory committee to assist in its work. This advisory committee consisted of the following: Allen B. Forbes, chairman, senior partner of Harris, Forbes & Co., New York; Frederick H . Goff, president Cleveland Trust Co., Cleveland, Ohio; Henry C. ANNUAL. REPORT OF T H E FEDERAL RESERVE BOARD. 65 Flower, president Fidelity Trust Co., Kansas City, Mo.; Stephen L. Selden, executive secretary; James Q. Newton, assistant executive secretary; Bradley W. Palmer, counsel. To complete its organization for nation-wide work, the committee appointed in each Federal Eeserve district an auxiliary committee of five members, including the Federal Eeserve agent acting as chairman, and the governor of the Federal Reserve Bank. Members of the advisory committee and all auxiliary committees served without compensation. I n beginning its work on February 1, 1918, the committee announced that, for the time being, it would undertake to pass upon industrial and public utility issues of not less than $500,000 and municipal issues of $250,000 and over. Subsequently, it reduced the minimum for both classes to $100,000, pointing out that the committee earnestly invited the cooperation of everyone in reducing and eliminating issues of even smaller amounts for purposes incompatible with the national interest. The test applied to security issues was (1) whether the offer was timely with respect to the financial operations to be undertaken by the Government and (2) whether the objects for which the funds were to be raised by the sale of securities were compatible with the public interest. The committee in no instance undertook to pass upon the security or legality of issues. Notwithstanding its purely voluntary nature and the absence of specific legal authority, the committee, by reason of the hearty cooperation of other governmental agencies and of bankers' associations, as well as of leading stock exchanges, was able, during its brief existence, to effect a considerable stoppage of nonessential security issues. The following is a record of issues actually considered: Municipal. Amount considered Amount disapproved PuMic utilities. Industrial. $86,878,512 $172,069,605 $219,510,269 19,791,665 6,000,000 39,900,000 Total. $478,458,386 65,691,665 67,086,847 21,392,312 166,069,605 125,860,284 179,610,269 111,411,900 412,766,721 258,664,496 Aggregate new issues New issues last year, same period 45,694,534 108,952,865 40,209,321 107,504,075 68,198,369 287,754,684 154,102,224 504,211,624 Analysis of new issues approved: Amount original applications Amount approved 65,486,199 45,694,534 46,209,321 40,209,321 108,098,369 68,198,369 219,793.889 154,102;224 Curtailment effected 19,791,665 6,000,000 39,900,000 65,691,665 Analysis of applications formally discouraged: Number Amount 8 $8,915,000 3 $7,360,000 6 $3,590,000 17 $19,865,000 Aggregate approved Less "refunding" I n addition to these tangible results, it is safe to assume that the committee's existence and the campaign of education conducted by it stopped at the source a great many commitments for capital ex100823°—19 5 66 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. penditures, thereby conserving material, labor, and credit for essential industries and use of the Government. Article I I of the War Finance Corporation act of April 5, 1918, provided for the appointment of a Capital Issues Committee by the President, and the committee which was appointed in accordance with the terms of the act automatically superseded the voluntary committee of the Federal Eeserve Board. The new committee adopted the general plan of organization which had been followed by the old committee, and appointed local committees in each Federal Reserve district to perform their functions through the Federal Eeserve Bank's organization in each district. LAW DIVISION. In the exercise of its functions, the Board is called upon to consider many intricate legal problems which frequently involve the interpretation of State as well as Federal laws. Subject to the provisions of the Federal Eeserve Act and the regulations of the Board, State banks and trust companies becoming members of the Federal Eeserve System retain their full charter and statutory rights as such and continue to exercise all corporate powers granted to them by the States in which they are created. There is lack of uniformity both in the powers vested in State banking corporations and in the laws regulating the operations of such corporations. The law division of the Federal Eeserve Board is therefore called upon to analyze carefully many of the laws of the 48 States which affect banking operations; to pass upon the legality of many banking operations under State and Federal law; to prepare legal papers, and in general, to render various legal services to the Federal Eeserve Board and the several Federal Eeserve Banks. While each Federal Eeserve Bank has its own counsel, it is, of course, important that rulings on legal questions should be uniform in all districts and the general counsel of the Board, therefore, acts in close cooperation with the counsel for the several Federal Eeserve Banks. In addition to the normal or routine work of the legal division every effort has been and is being made to cooperate with the several State authorities and with the various agencies interested in bringing about a standardization of banking laws and a coordination of banking powers, and this has involved much work in connection with both State and Federal legislation. The activities of the law division may be briefly summarized as follows: FEDERAL LEGISLATION. The Federal Eeserve Act, since its passage, has been amended in many particulars by the acts of August 4, 1914, August 15, 1914, A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. 67 March 3, 1915, September 7, 1916, June 21, 1917, and September 26, 1918. Most of these amendments were enacted by Congress upon the recommendation of the Federal Eeserve Board, and the law division assisted in the preparation of the amendments. I n addition to the foregoing amendments, the Federal Reserve Act has been modified or amended by provisions incorporated in other acts. Following the passage of these amendments there is compiled by the law division under direction of the Board, a new edition of the Federal Eeserve Act with an appendix containing extracts from other acts of Congress which amend the Federal Reserve Act or affect the operation of Federal Reserve Banks or member banks, all fully indexed. STATE L E G I S L A T I O N . I t is obviously important that there should be maintained in the office of general counsel a proper analysis of State laws affecting the operations of member banks and a record of all banking laws passed by the several States. Member banks, other than national banks, are subject to the laws of the 48 States, and these laws have been made applicable to the operations of national banks in certain particulars; for example, in the exercise of fiduciary powers. There has been prepared by this division and published in the Federal Reserve Bulletin, an analysis of the State laws relating to reserve requirements, an analysis of State laws relating to bank acceptances, and an analysis of State laws affecting the operations of foreign banking corporations. This information is of great importance at the present time since our member banks are now authorized to establish-and maintain branches in foreign countries or to subscribe to stock in banks engaged principally in the business of international or foreign banking. As our foreign trade develops it may reasonably be expected that foreign banks will desire to increase their activities in this country. As many of the State laws impose restrictions on the operations of foreign banks, it is important that this subject should be given careful consideration by those interested in the standardization of such laws. The law division is also engaged in the preparation of an analysis of State laws relating to capital and surplus requirements, which will be published at an early date, and an analysis of State laws relating to limitations on loans. I t endeavors, through the counsel for the several Federal Reserve Banks and through the superintendents of banks of the several States t o fcpp.n rm flip mnip.s rvf n i l q.r*t.s rmssprl h v Mta+.p. lpon«lnfnr*A« wTur»"h 68 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. I n an effort to assist in bringing about a standardization of State banking laws and a coordination of Federal and State banking powers, certain Federal legislation to this end has been recommended and an analysis of the several State laws has been made to show what legislation is necessary on the part of the State legislatures to enable State banks which become members of the Federal Eeserve System to conduct their operations on a basis of substantial equality with other member banks. This analysis, with a standard form of enabling act, was prepared at the request of the president of the American Bankers' Association, and with slight modifications has been adopted by that association in its program of legislation for the year 1919. As 44 State legislatures meet during the current year, it is hoped that many of the States will adopt the necessary legislation to remove any inequalities that may exist by reason of the conflict in State and Federal laws. REGULATIONS. The law division is called upon to assist in the preparation of all regulations of the Board in order that they shall in all cases conform legally to the letter and spirit of the Federal Eeserve Act. OPINIONS. As previously stated, this division is required to pass upon questions involving the interpretation of the Federal Reserve Act, the national bank act, the negotiable instruments law, and the laws of the several States which affect the operation of national banks, State banks, or trust companies which are members of the Federal Eeserve System. INFORMAL RULINGS. Eulings which involve the application of regulations of the Board or of provisions of the Federal Eeserve Act, to concrete questions arising in the administration of the act, are usually referred to this division before being published or formally entered so that there may be no question of their legality. CLAYTON ACT. Under the Kern amendment to the Clayton Act, the Board is authorized under certain conditions to permit the same person to serve as an officer or director of two or more banking institutions which are not in substantial competition. Applications for this permission are filed on regular forms prepared by the Board, and in each case are referred to this division to ascertain whether the application is in proper form; whether it contains data sufficient to enable the Board to pass upon the question presented, and it is ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 69 usually necessary for this division to conduct correspondence and to prepare various memoranda in connection with such application. The national-bank examiners report all cases where the same person is serving with two or more banking institutions in apparent violation of the Clayton Act. Such cases are referred to this division w^hich must determine— (a) Whether a permit has been granted by the Board; (b) If not, what is the capital and surplus of the banks involved; (c) What is the population of the place in which the banks are located according to the 1910 census; (d) Whether the banks involved are member banks. A report is then made to the Board with a recommendation as to the action to be taken. More than 2,000 cases have been passed upon by the counsel's office and a list of applications granted and refused comprises more than 143 pages of typewritten matter. STATE B A N K A P P L I C A T I O N S FOE MEMBERSHIP. The Board has approved more than 650 applications of State banks for membership in the Federal Reserve System during the past year. Each of such applications is first submitted to this division and in each case it is necessary— (1) To ascertain if the application and exhibits are executed in proper form; (2) Whether all necessary exhibits accompany the application; (3) To examine and make a certificate as to the legality of suggested conditions of membership; (4) To examine State laws to ascertain (a) whether the bank has any unusual powers, and prepare memorandum on this subject, and (b) whether the bank has power to join the system; (5) To ascertain whether the bank has the necessary capital stock; (6) To examine the charter or articles of incorporation; (7) To prepare memoranda regarding any unusual or doubtful cases and to call to the attention of the Board any irregularities; (8) I t is also necessary to prepare numerous letters in connection with these applications calling for additional information. A P P L I C A T I O N S FOR T E U S T POWERS. Since the passage of the act of September 26, 1918, which amended section 11 (k) of the Federal Reserve Act, there has been a considerable increase in the number of applications filed by national banks for permission to exercise trust powers. I n each case it is necessary for this division— (1) To ascertain whether the application is executed in proper form; 70 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. (2) Whether the bank has the necessary capital and surplus required by the State law; (3) Whether the State law gives competing institutions the powers applied for; (4) To prepare a report in each case for the Federal Reserve Board. The amendment referred to makes various State laws applicable to the operations of national banks exercising trust powers. I t is therefore necessary for this division to maintain a careful analysis of all the laws of the State relating to the exercise of fiduciary powers by competing State corporations and to pass upon a very large number of questions arising in connection with the exercise of trust powers. There is now in course of preparation a new series of regulations governing the exercise of these powers by national banks in accordance with the act as amended. ACCEPTANCES. A very large number of questions have arisen in connection with the use of bank credit in the form of acceptances. This being a new power vested in national banks by the Federal Reserve Act, it is necessary to carefully supervise its exercise to the end that a proper discount market may be developed along conservative lines, and in order that this power may not be used for the purpose of evading limitations or restrictions imposed upon the credit operations of national and member banks. COMPTROLLER OF T H E CURRENCY. To avoid any possible conflict which may result in cases where the jurisdiction of the Comptroller of the Currency and the Federal Reserve Board is seemingly concurrent, the general counsel of the Federal Reserve Board acts in such cases as joint counsel for the Board and the Comptroller. The law division of the Board is therefore required to pass upon a number of questions arising in connection with the operations of national banks. FOREIGN E X C H A N G E TRANSACTIONS. Under the trading with the enemy act, the President was authorized to use any agency or agencies that he might select to control foreign exchange transactions and to prevent the resources of this country from being used for enemy purposes. The Federal Reserve Board was designated by Executive order of January 26, 1918, as the agency of the Secretary of the Treasury to exercise proper supervision over all such transactions. All persons carrying accounts either with or for foreign correspondents or engaging in any manner ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 71 in transactions in foreign exchange or transfers of credits as between the United States and any foreign country were required to obtain a registration certificate from the Federal Reserve Board and to make regular reports of all such transactions. I n each case a certificate of nonenemy interests was required, and whenever it appeared that the consummation of the transaction would not be compatible with the best interests of the United States its consummation was ordered suspended by the Federal Reserve Board, pending investigation. The law division was accordingly called upon to prepare various regulations and rulings and to pass upon a number of intricate questions of Federal law and international law in connection with the exercise of these functions. FIDUCIARY POWERS. Section 11 (k) of the Federal Reserve Act authorizes the Federal Reserve Board " to grant by special permit to national banks applying therefor, when not in contravention of State or local law, the right to act as trustee, executor, administrator, and register of stocks and bonds under such rules and regulations as the said Board may prescribe." I n its last annual report the Board called attention to the decision of the Supreme Court of the United States, in the case of Bank v. Fellows, which sustained the right of Congress to grant fiduciary powers to national banks and to vest in such banks any powers enjoyed by competing State corporations. I n the course of its opinion the court indicated that the purpose of Congress in providing that fiduciary powers might be granted to national banks " when not in contravention of State or local law " was to bring about a more thorough coordination of banking powers as between Federal and State institutions. I n order to remove any question of the power of the Board to accomplish this result by regulation an amendment to the act was recommended which was designed to make national banks exercising fiduciary powers subject to State laws in so far as those laws provided appropriate safeguards for the protection of beneficiaries of trust estates. The amendment suggested by the Board with some modifications was included in the act which was approved and became a law on September 26,1918. Under the act as amended the fiduciary powers which may be granted by the Board have been enlarged so as to include authority to act as guardian of estates, assignee, receiver, committee of estates of lunatics, or in any other fiduciary capacity in which State banks, trust companies, or other corporations which come into competition with national banks are permitted to act. under the laws of the State in which the national bank is located. 72 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. The Board is authorized to grant permits to national banks, to exercise fiduciary powers in any case in which competing State corporations are permitted to exercise these powers, even though the laws of the State expressly or impliedly prohibit the exercise of such powers by a national bank. Indications are that a great many of the national banks will apply for and obtain these permits and will thus be enabled to afford additional facilities to their customers and to increase the scope of their operations. During the year 1918, up to September 26, the Board had granted 89 original permits and 1 supplemental permit. I t has granted since that time 49 original permits and 44 supplemental permits. Original permits issued during the year number 138, the total number of banks now holding original permits being 708. A list of the banks to which permits have been granted appears m the appendix. RESERVE A N D C E N T R A L RESERVE C I T I E S . The Board is authorized and empowered by section 11 of the Federal Reserve Act to add to the number of cities classified as reserve and central reserve cities in which national banking associations are subject to special reserve requirements, and to reclassify existing reserve cities or to terminate their designation as such. The law as amended by the act of J u n e 21, 1917, requires all reserves of member banks to be carried with the Federal Reserve Banks of their respective districts. The requirement as to time deposits is the same with all classes of banks—3 per cent; while on demand deposits banks in central reserve cities are required to carry a reserve of 13 per cent, those in reserve cities 10 per cent, and banks in other towns and cities 7 per cent. I t has been the policy of the Board in permitting the establishment of branch banks to classify cities in which the branches are located as reserve cities, and in accordance with this policy the Board has designated Jacksonville, Fla., E l Paso, Tex., and Little Rock, Ark., as reserve cities. The other branches established during the year are in cities which were already classified as reserve cities. B R A N C H E S OF F E D E R A L RESERVE B A N K S . There were in operation at the close of the year 1917 six branches of Federal Reserve Banks, as follows: Location. New Orleans Louisville...' Omaha Portland Seattle Spokane Established by— Federal Reserve Bank Federal Reserve Bank Federal Reserve Bank Federal Reserve Bank Do. Do. of Atlanta. of St. Louis. of Kansas City. of San Francisco. ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. 73 During the year 1918, the following branches, which were authorized by the Board during the year 1917, were opened for business: Location. Established by— Federal Reserve Bank Do. Federal Reserve Bank Federal Reserve Bank Federal Reserve Bank Cincinnati Pittsburgh Detroit Baltimore Denver of Cleveland. of Chicago. of Richmond. of Kansas City. During the year covered by this report the Board authorized branches as follows: Location. Jacksonville Memphis Little Rock El Paso Salt Lake City Established by— Federal Reserve Do. Federal Reserve Do. Federal Reserve Federal Reserve Bank of Atlanta. Bank of St. Louis. Bank of Dallas. Bank of San Francisco. These branches have all been in operation for several months, with the exception of that at Little Rock, which began business on January 6, 1919. "While section 3 of the Federal Reserve Act as amended June 21, 1917, authorizes the Federal Reserve Board to " permit or require " any Federal Reserve Bank to establish branch banks within its district, it is the policy of the Board to have negotiations for branch banks originate between the community applying and the Federal Reserve Bank, and to review only such cases as may be referred to it after consideration by the directors of the Federal Reserve Banks. All of the branches have proved a great convenience to the communities served, and have tended to arouse a greater local interest in the Federal Reserve System. Many of them have justified their existence from the standpoint of earnings, while others recently established have not yet had an opportunity of demonstrating their ability to sustain themselves. I n some cases the establishment of branches has been followed by accession to membership of a number of State banks in the localities served, and the usefulness of the branches has been greatly increased as a result. The by-laws governing the branches are approved by the Federal Reserve Board, and are uniform as far as recognition of the control and responsibility of the Federal Reserve Banks is concerned, but differ in some districts as to matters of administrative detail. In some cases the branch is empowered to make rediscounts for the member banks assigned to it, while in others the actual rediscounting operation is performed at the head office, the member banks being given credit at the branch as of the date on which the paper is ten 74 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. dered to the branch. I n one case the earnings growing out of rediscounts are shown on the books of the branch, while in the other they appear only on the books of the Federal Reserve Bank; consequently a comparative statement of the earnings of the various branches can not be given. Clearing operations and the collection of country checks are engaged in by the branch banks, and the head offices are relieved of a corresponding amount of detail work. I t is apparent, however, that too great a number of branches in any one district involving a division of the funds of the Federal Eeserve Bank will tend to impair the effective control of the bank over its resources, and this fact, together with the expense involved in the operation of branch banks, will make it impossible to gratify the civic pride of many cities desiring branches. There are, unavoidably, some advantages enjoyed by member banks located in Federal Eeserve or branch bank cities which are not shared by banks in other towns and cities, but the Board is endeavoring, as far as possible, to give equal facilities to all member banks, and has, therefore, authorized the Federal Reserve Banks to pay all charges on shipments of currency to or from member banks. A member bank, therefore, located at a distance from its Federal Reserve Bank, is thus put in as favorable a position with respect to currency transfers as a member bank located in the Federal Reserve city, with the exception of the time involved in transit. CHECK CLEARING A N D COLLECTION. The member banks are availing themselves more and more of the clearing and collection facilities afforded by the Federal Reserve System. The daily average number of transit items handled by the reserve banks during the year 1917 was approximately 276,000, amounting to $190,000,000. F o r the 30-day period ended June 15, 1918, the daily average number of items handled was 485,600, an increase of over 80 per cent, amounting t o $385,060,000, an increase of over 100 per cent. F r o m October 15 to November 15, 1918, the daily average number of items handled was 828,000, an increase over J u n e 15 of 70 per cent, amounting to $556,943,000, an increase of 45 per cent. On November 15, 1917, the number of member banks was 7,826, and the number of nonmember banks on the par list was 9,210, a total of 17,036. On December 15,1918, the number of member banks was 8,612, and the number of nonmember banks on the p a r list was 10,409, a total of 19,021, showing an increase for the 12 months of 1,985 in the number of banks remitting a t par. Assuming the total number of banks in the United States to be about 29,000, the number clearing through the Federal Reserve col ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 75 lection system by districts is shown approximately in the following table: Remitting a t par. Member banks. Boston New York... Philadelphia Cleveland Richmond Atlanta Chicago S t . Louis Minneapolis K a n s a s City •. Dallas S a n Francisco . . Total Nonmember b a n k s . Nonmember b a n k s not remitting a t par (approximate). 423 723 661 814 565 426 1,334 514 867 994 727 644 246 339 329 728 351 209 2,392 1,046 1,169 2,200 247 1,049 411 1,156 1,345 1,805 1,600 1,743 979 947 159 8,692 10,305 10,247 io2 I t appears, therefore, that there are something over 10,000 banks which do not remit at par. Classifying these banks according to their deposits, the approximate total of nonremitting banks in each district appears as follows: Boston New York Philadelphia Cleveland Richmond Atlanta Chicago Minneapolis K a n s a s City Dallas San Francisco. Total 1 Total (approximate). $1,000,000 a n d over. $250,000 t o $1,000,000. $100,000 t o $250,000. Less t h a n $100,000. 17 27 42 37 41 15 6 3 13 7 45 127 275 250 453 239 161 270 114 31 18 171 411 460 746 546 463 779 303 63 7 66 316 528 325 612 303 665 369 47 87 391 1,044 1,275 1,565 1,412 933 1,717 799 148 208 1,965 3,960 3,238 19,371 Many nonremitting banks do not report their deposits. At a conference of Federal Reserve agents which was held in Washington on December 7, the conclusion was reached that every effort should be made to increase the number of banks on the par* list. The banks and the public need a system that is able to collect all items. A t the present time, although checks on two-thirds of the banks can be collected at par, and these banks represent perhaps 90 per cent of the banking resources of the country, the number of banks which will not remit at par, in which are included some of substantial size and located in important cities, is sufficiently large to make many banks hesitate to use the Federal Reserve collection system because of the number of items which can not be handled by the Federal Reserve Banks. Whenever the number of nonremitting banks can 76 ANNUAL REPORT OF T H E FEDERAL, RESERVE BOARD. fee reduced by one-half, or to five or six thousand, the collection system in many districts at least would be almost universally used and the Board could feel t h a t the principle of par collections had been established beyond question. The par list has shown a steady growth, but a continuous effort will be made through correspondence and personal solicitation to make further substantial additions to it. The par collection system is not a local or selfish undertaking for the benefit of member banks, but is a national enterprise for the convenience of the public and the promotion of commerce, and concentrated and persistent efforts will be made to make the p a r list complete. While the additions to the par list account in part for tne large increase in the number of transit items handled, it is evident that the remarkable increase in the volume of transactions has been occasioned primarily by the greater use of the facilities of the system by all member banks. There have been only a few additions to the number of nonmember banks maintaining clearing accounts with the Federal Reserve Banks as permitted under section 13 of the act as amended June 21, 1917, and little, if any, of the increase shown is due to their cooperation. The opinion of the Attorney General of the United States was asked as to the applicability to nonmember banks of the provision contained in the amendment to section 13 enacted in June, 1917, that member or nonmember banks " may make a reasonable charge to be determined and regulated by the Federal Reserve Board, but in no case to exceed 10 cents per $100 or fraction thereof, based on the total of checks and drafts presented at any one time for collection or payment of checks and drafts, and remission therefor by exchange or otherwise, but no such charges shall be made against the Federal Reserve Banks." The Attorney General expressed the view that the limitations contained in section 13 do not apply to State banks not connected with the Federal Reserve System as members or depositors, but that checks on banks making exchange or collection charges should not be cleared or collected through Federal Reserve Banks. This opinion has restricted the operations of the Federal Reserve Banks to checks which can be collected without the payment of exchange to the bank acting as collecting agent. At the close of the year 1917 the reserve banks were assessing upon member banks a service charge of from nine-tenths of 1 cent to 1^ cents per item, the charge being made to cover cost of postage, stationery, and accounting. Early in 1918 this charge was modified by some of the banks taking 500 checks per month from each member bank free, all checks in excess of that number being subject to the service charge. On J u l y 1 the service charge was abrogated entirely, A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. 77 and the Federal Reserve Banks now collect without charge all checks on members and other banks on the par list. During the month of October, as has already been stated, additional facilities were given member banks and their customers through the absorption by the Federal Reserve Banks of all cost of postage, expressage, insurance, etc., incident to shipments of currency to and from member banks (not including silver and subsidiary coin), also of the cost of telegrams between the Federal Reserve Banks and member banks in connection with currency, exchange transfers, and deposit transactions. Under a similar arrangement for nonmember banks maintaining clearing accounts, the Federal Reserve Banks absorbed the cost of postage, insurance, and expressage in connection with shipments of currency in settlement of clearing balances, and a further saving of expense to nonmember banks on the par list is provided by inclosing stamped envelopes with collection letters for return remittances. All expenses incident to shipments of currency made in payment of items sent for collection are borne by the Federal Reserve Banks. Since the installation of the leased-wire system connecting all Federal Reserve Banks, delays in the transmission of telegraphic transfers from one section of the country to another have been reduced to a minimum, and the number of such transactions which are consummated daily indicates the member banks' appreciation of the facilities afforded. I n some districts there has been an increase in the number of banks taking advantage of the exchange facilities, provided through the medium of Federal Reserve exchange and Federal Reserve transfer drafts. Any member bank may obtain through its Federal Reserve Bank as complete facilities as it could secure by maintaining accounts in each of the 12 Federal Reserve cities, as these drafts are payable on presentation at any designated Federal Reserve Bank without deduction for time involved in collection, the settlements between the Federal Reserve Banks concerned being made through telegraphic transfers. I S S U E S OF FEDERAL RESERVE B A N K N O T E S . The act approved April 23, 1918, known as the Pittman Act, the short title of which is "An act to conserve the gold supply of the United States; to permit the settlement in silver of trade balances adverse to the United States; to provide silver for subsidiary coinage and for commercial use; to assist foreign Governments at war with the enemies of the United States; and for the above purposes to stabilize the price and encourage the production of silver," authorizes the Secretary of the Treasury to melt or break up and sell as bullion not more than 350,000,000 of standard silver dollars, and provides that 78 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. any silver certificates which may be outstanding against such standard silver dollars so melted or broken up shall be retired at the rate of $1 of such certificates for each standard silver dollar melted or broken up, and that sales of bullion shall be made at such price—not less than $1 per ounce of silver 1,000 fine—and upon such terms as shall be prescribed from time to time by the Secretary of the Treasury. The act further provides that the sales of silver bullion may be made for the purpose of conserving the existing stock of gold in the United States, of facilitating settlement in silver of trade balances adverse to the United States, of providing silver for subsidiary coinage and for commercial use, and of assisting foreign Governments at war with the enemies of the United States. I n order to prevent contraction of the currency, the Federal Reserve Board is authorized to permit or require the Federal Reserve Banks to issue Federal Reserve bank notes in any denominations, including denominations of $1 and $2, in an aggregate amount not exceeding the amount of standard silver dollars melted or broken up and sold as bullion, upon deposit with the Treasurer of the United States, as security for the bank notes issued, of United States certificates of indebtedness, or of United States one-year gold notes. The Federal Reserve bank notes are taxable at a rate to make the net return on the certificates of indebtedness or the one-year gold notes equal to the net return on United States 2 per cent bonds used to secure Federal Reserve bank notes. The effect of the Pittman Act has been most satisfactory; it has caused no expansion of currency, as the Federal Reserve bank notes which have been issued have merely taken the place of a corresponding amount of silver dollars or silver certificates which had been in circulation and the bullion which has been made available by the melting of the silver dollars has been most effective in relieving an acute financial situation with which the British Government was confronted in India, and has also relieved, without the shipment of gold, an adverse exchange situation, which threatened to restrict our importations from the Orient. I n the allocation of silver, preference has been given to the requirements of our own Government and the governments associated with us in the war, although as the supply of silver has become more ample, shipments have been permitted to some extent for commercial purposes. U p to the close of the year, $119,162,760 of Federal Reserve bank notes were issued and put into circulation mainly in denominations of $1 and $2, and exports of silver were authorized by the Board since April 23, amounting to $258,209,000. These issues of Federal Reserve bank notes are of a temporary character and will be retired automatically as the Treasury redeems the certificates of indebtedness or notes securing them, as required A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. 79 by section 6 of the Pittman Act, which provides that " as and when standard silver dollars shall be coined out of bullion purchased under authority of this act, the Federal Reserve Banks shall be required by the Federal Reserve Board to retire Federal Reserve bank notes issued under authority of section 5 of this act, if then outstanding, in an amount equal to the amount of standard silver dollars so coined, and the Secretary of the Treasury shall pay off and cancel any United States certificates of indebtedness deposited as security for Federal Reserve bank notes so retired." A M E N D M E N T S TO T H E FEDERAL RESERVE ACT. The ability of the Federal Reserve System to meet the abnormal conditions incident to the war has been due in a large measure to the liberal attitude and prompt action of Congress in enacting legislation necessary to make the Federal Reserve Act responsive to these conditions. The acts which have become law since the last annual report of ftie Board, and which amend the provisions of the Federal Reserve Act, or affect the operations of the Federal Reserve Banks or member banks, may be summarized briefly as follows: (1) Section 8 of the act approved April 4, 1918, known as the third Liberty bond act, authorized the Secretary of the Treasury to leave on deposit with banks which subscribed for themselves or for their customers to the third Liberty loan the proceeds of such subscriptions under certain safeguards and restrictions. This was obviously necessary to prevent complications which might have resulted from heavy withdrawals of deposits from banks throughout the United States and the concentration of these funds in the Treasury. (2) Section 13 of the act approved April 5, 1918, known as the war finance act, authorized the Federal Reserve Banks to discount direct obligations of member banks secured by bonds of the W a r Finance Corporation and to use notes so secured, if it becomes necessary, as a basis for Federal Reserve notes. While the W a r Finance Corporation did not find it necessary to issue bonds or to obtain credit through the Federal Reserve Banks, this precautionary legislation unquestionably had a very beneficial effect in stabilizing credits. Section 15 authorized the Federal Reserve Banks to act as fiscal agents and depositaries of the W a r Finance Corporation, thus placing at the disposal of that corporation the facilities of the Federal Reserve System. Section 20 of this act amended section 5202, Revised Statutes, so as to exempt from the liabilities which may be incurred by a national bank those incurred under the provisions of the war finance corporation act. 80 ANNUAL, KEPOKT OF THE FEDERAL, RESERVE BOARD. Section 301 repealed the stamp tax in so far as it applied to promissory notes secured by bonds or obligations of the United States. This provision of the war finance corporation act aided materially in marketing Liberty bonds. (3) The act approved April 23, 1918, known as the Pittman Act, amended the Federal Reserve Act by authorizing Federal Reserve Banks to issue Federal Reserve bank notes in any denomination including denominations of $1 and $2 against the security of United States certificates of indebtedness or of one-year United States gold notes. This act has been discussed elsewhere in this report. (4) The act of September 24, 1918, entitled " A supplement to the third Liberty bond act," amended section 5200, Revised Statutes. This section limits the amount that may be loaned by any national bank to any one person to 10 per cent of the capital and surplus of the lending bank. Under this amendment loans secured by Liberty bonds were made exempt under certain conditions from this limitation, thus facilitating to a very great extent the marketing of Liberty bonds. (5) The trading-with-the-enemy act, as amended by the act approved September 24, 1918, authorized the President to use any agencies that he might select to control foreign-exchange transactions. Under authority of this act the Federal Reserve Board was designated to perform these functions as the agency of the Secretary of the Treasury. (6) The act of September 26, 1918, amended sections 4, 11, 16, 19, and 22 of the Federal Reserve Act, and sections 5208 and 5209, Revised Statutes: (a) The amendment to section 4 of the Federal Reserve Act simplified the procedure to be followed in the election of directors of Federal Reserve Banks. (&) The amendment to section 11, subsection (&), of the Federal Reserve Act, broadened to some extent the trust or fiduciary powers that may be exercised by national banks; made such operations subject to appropriate safeguards and restrictions, and will make it possible for national banks to exercise these powers on a basis of substantial equality with competing State corporations. (c) The amendment to section 16 of the Federal Reserve Act authorized the issuance of Federal Reserve notes in larger denominations than was possible under preexisting laws. (d) The amendment to section 19 of the Federal Reserve Act vested in the Board the power to classify banks in outlying districts of reserve and central reserve cities as banks in reserve or nonreserve cities, thus removing what might have proven an injustice to the smaller banks in the outlying districts of the larger cities or in newly annexed territory of such cities. ANNUAL, KEPORT OF T H E FEDERAL RESERVE BOARD. 81 (e) The amendment to section 22 of the Federal Reserve Act, which relates to transactions between member banks and their officers or directors, has cleared up the mttfiy ambiguities of that section and has removed what was regarded by many State banks as an obstacle to membership. (/) The amendment to sections 5208 and 5209, Eevised Statutes, which prescribe penalties for false statements made with intent to defraud by officers or directors of national banks, and certain penalties for embezzlement, abstraction, or willful misapplication of funds on the part of such officers or directors, makes subject to these penalties officers and directors of Federal Reserve Banks and receivers of national banks. P E N D I N G A M E N D M E N T S TO T H E FEDERAL RESERVE ACT. There is now pending in the House a bill to amend sections 7, 10, 11, and 25 of the Federal Reserve Act, and section 5172 of the Revised Statutes. A bill has already been passed in the Senate, the provisions of which are substantially similar to those of the House bill, except that it does not include any amendment to sections 10 and 25 of the Federal Reserve Act. The purpose of the proposed amendments included in these bills may be summarized briefly as follows: A M E N D M E N T TO SECTION 7 . Section 7 of the Federal Reserve Act now provides that the net earnings of the Federal Reserve Banks, after paying expenses and cumulative dividends, shall be paid to the United States as a franchise tax, except that one-half of such net earnings shall be paid into a surplus fund until that fund amounts to 40 per cent of the paid-in capital. The amendment to section 7 provides that all net earnings shall be paid into a surplus fund u n t i l that fund amounts to 100 per cent of the subscribed capital of the Federal Reserve Bank and that thereafter 10 per cent of said net earnings shall be paid into this fund. The Federal Reserve Banks are not subject to the same restrictions as are imposed upon national banks regarding liabilities that may be incurred. National banks are not permitted to become liable for borrowed money (except to Federal Reserve Banks and to the W a r Finance Corporation) in an amount greater than their capital stock, nor can they issue and put in circulation national bank notes in excess of this amount. I n order to give greater elasticity to their operations, Federal Reserve Banks were not made subject to these restrictions. I t is there100823°—19 6 82 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. fore of very great importance to the United States as well as to the banks, that a large surplus should be created for the protection of outstanding liabilities. Fedeuil Eeserve notes issued through Federal Reserve Banks and for which they are ultimately liable are obligations of the United States. The net earnings of the Federal Reserve Banks, which are paid to the Government under existing laws as a franchise tax, are used either to supplement the gold reserve held against outstanding United States notes, or to reduce the outstanding bonded indebtedness of the United States. The law provides that should a Federal Reserve Bank be dissolved or go into liquidation, any surplus remaining after the payment of all debts, dividend requirements, and the p a r value of the stock, shall be paid to and become the property of the United States. I t is obvious, therefore, that if these earnings are carried into the surplus account of the Federal Reserve Banks they will accomplish substantially the purpose for which they are now used, since they will protect the credit of the United States, A M E N D M E N T TO SECTION 10. Section 10 now makes members of the Federal Reserve Board ineligible during the time that they are in office and for two years thereafter, to serve as officers or directors of member banks. The proposed amendment is designed to make the members ineligible during the time they are in office and during the period for which they are appointed, but will not disqualify them after they have served their full term. AMENDMENT TO SECTION 11. Federal Reserve Banks are now prohibited from rediscounting for a member bank notes bearing the signature or indorsement of any one borrower in an amount in excess of 10 per cent of the capital and surplus of the member bank. By recent amendment to the national bank act, national banks under regulations prescribed by the Comptroller of the Currency, with the approval of the Secretary of the Treasury, are permitted to lend to one person, an amount in excess of 10 per cent of their capital and surplus, provided such loans are secured by United States bonds or certificates of indebtedness issued after April 24, 1917. I n view of the limitations contained in sections 9 and 13 of the Federal Reserve Act, national banks and other member banks which, in the interest of the Government, have made loans to customers in excess of 10 per cent of their capital and surplus, upon the security of Liberty bonds, are now unable to rediscount the notes taken with ANNUAL, REPORT OF T H E FEDERAL, RESERVE BOARD. 83 tke Federal Reserve Banks. I n justice to the member banks, therefore, it is important that this amendment to section 11 should be adopted, which will permit the Federal Reserve Board, when necessary, to suspend the limitations of the sections above referred to. A M E N D M E N T TO SECTION 25. The Board has, on previous occasions, recommended to Congress that the Federal Reserve Act be amended so as to permit national banks under certain conditions to establish branches. The proposed amendment to section 25 which has been incorporated in the House bill but not in the Senate bill, authorizes national banks located in a city of more than 100,000 inhabitants and having a capital and surplus of $1,000,000 or more, to establish branches not to exceed 10 in number within the corporate limits of the city or town in which it is located, provided the State laws extend a similar privilege to competing State corporations. As the law now stands national banks are at a serious disadvantage in meeting the competition of State banks with branches. I n the opinion of the Board the proper development of the Federal Reserve System makes it necessary to coordinate as far as possible the powers of all member banks. Under existing laws, State banks and trust companies in many cases are permitted to operate branches even after conversion into national banks, with the result that some member banks, both national and State, are given advantage over other member banks. The Board therefore renews its recommendation that this amendment be adopted, being confident that it will prove beneficial to the Federal Reserve System, as well as to the communities concerned. A M E N D M E N T TO SECTION 5 1 7 2 , R. S. A bill identical in form with this amendment has already passed the House and the Senate. I n the Senate, however, it was passed as an independent bill, while in the House it was a part of a bill which dealt with other subjects. I n these circumstances it has not become a law. Under the present law, national bank notes must be delivered to member banks registered and countersigned in blank and are presumably signed by the officers of the issuing bank. The law makes such notes, however, subject to redemption by a national bank, whether issued and placed in circulation without signatures or with forged or fraudulent signatures. The actual signing of the note is therefore not a necessary incident to its validity. This amendment permits the signatures to be engraved on the notes before they are delivered to the banks. If adopted, considerable expense will be avoided and the distribution of the notes will be expedited. 84 A:N:NUAL KEPORT OF T H E FEDERAL, RESERVE BOARD. FEDERAL ADVISORY C O U N C I L . The Federal Advisory Council during the year held four meetings at Washington, as required by section 12 of the Federal Reserve Act. I t is the practice of the Board, in advance of each meeting, to furnish the council with a list of topics suggested for discussion, and to hold a joint session with the council at the beginning and close of each meeting. At the opening session the Board's viewpoint is outlined and at the closing session the council submits a written report giving its opinions and conclusions regarding the questions brought to its attention by the Board, and makes, at the same time, such independent suggestions or recommendations as it may deem proper. These meetings are of constantly increasing interest and value, for they give the Board the advantage of the views of leading bankers from all sections of the country, and at the same time enable the Board to make clear to these representative bankers its own attitude on various banking and financial problems. The statute requires that these meetings be held not less t h a n four times each year, and oftener if called by the Federal Reserve Board. The council is also empowered to hold additional meetings whenever it may deem it necessary, either in Washington or elsewhere. So far additional meetings have not been deemed necessary, but the Board will not hesitate to call the council together whenever, in the consideration of the problems incident to the readjustment period which the country is entering, such action should seem advisable. The members of the Federal Advisory Council inform the Board at each meeting of financial, commercial, and agricultural conditions in their respective districts. BOARD'S ORGANIZATION, STAFF, AND EXPENDITURES. The personnel of the Federal Reserve Board, which had remained intact for nearly four years, has undergone marked changes since July 22,1918, when Mr. Frederic A. Delano, now a lieutenant colonel, Corps of Engineers, United States Army, resigned his membership in order to engage in military service overseas. The term of Mr. P a u l M. Warburg, vice governor of the Board, expired on August 9, and the resignation of Hon. Wm. G. MeAdoo, Secretary of the Treasury and ex officio chairman of the Board, became effective on December 16. Mr. Albert Strauss, of New York, was appointed by the President for the 10-year term to succeed Mr. Warburg, and taking the oath of office on October 20, was designated by the President as vice governor of the Board. Hon. Carter Glass, who became Secretary of the Treasury on December 16, is now by virtue of his office, chairman jof the Board. No successor to Mr. Delano has yet ANNUAL EEPORT OF THE FEDERAL RESERVE BOARD. 85 been named. Dr. H . Parker Willis, who had been the secretary of the Board since its organization, resigned on August 1, and the Board elected as his successor, Mr. Joseph A. Broderick, of New York, who had been from the outset the chief of its Division of Audit and Examination, and in addition to his duties as secretary, Mr. Broderick remains as the head of that division. On May 16, Mr. Louis C. Adelson was elected assistant secretary of the Board, and on September 1, Mr. Webb T. Chapman was elected as an additional assistant secretary. The marked growth of the activities of the Federal Reserve System has been accompanied by a heavy increase in the volume of the Board's work, necessitating considerable additions to the clerical force. The establishment of the Division of Foreign Exchange, with headquarters in New York, as well as the creation of the Division of Analysis and Research, have increased the number of persons employed by the Board from 76 on December 31, 1917, to 227 on December 31, 1918, of whom 91 are in the Division of Foreign Exchange, engaged in work which will end with the reestablishment of peace. The total cost of conducting the work of the Board during the year 1918, including salaries of members, expenses involved in printing the Bulletin, and the cost of operating the Division of Foreign Exchange, was $428,318.59. During the year 1918 two assessments were levied against the Federal Reserve Banks, aggregating $382,081, or approximately one-half of 1 per cent of the average paid-in capital and surplus of the Federal Reserve Banks for the year. The annual reports of the Federal Reserve agents and further details relating to the operations of the Federal Reserve Board and of the Federal Reserve Banks appear in the appendix. CONCLUSION. Having submitted a report of operations in considerable detail, the Board deems it appropriate in closing to refer to certain facts and conditions which have had a bearing upon its policies and operations. I n meeting the emergencies occasioned by the war, Governments everywhere have been compelled to make unprecedented drafts upon their national incomes and resources. With the great nations engaged in a death grapple, preservation of national life has been the supreme object. Most difficult questions of financial expediency have been presented to finance ministers in deciding upon the most available and effective means of mobilizing national resources. The decision once made, it became the duty of all separate administrative agencies concerned with fiscal or banking functions to cooperate in giving effect to policies adopted, and it was in this spirit of cooperation that the Federal Reserve Board felt it to be its duty to assist in making effective the policies determined upon by the Secretary of the Treasury, 86 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. however inconsistent some of the steps necessary to be taken might be with principles which usually govern in normal times. The demands of war are imperative and must be met without delay, and in financing the titanic struggle happily ended by the armistice last November first consideration could not always be given to what was theoretically desirable or convenient from the standpoint of banking practice. The financial obligations of the Government are being met, the war has. been won, hostilities have been ended, and representatives of the United States and the allied powers are now in conference regarding terms of peace. The country is confronted, it is true, with the problems incident to the demobilization of troops, the readjustment of prices, and the diversion of industry from war activities to the employments of peace. We are approaching an era of general readjustment and resumption of construction at home, and of reconstruction abroad, but the termination of the war at a time far in advance of popular expectation has minimized instead of magnified our national problems. We should have been confronted with them in any event whenever the war terminated, and the Government has not been required to withdraw from their ordinary employment the 2,000,000 or more of men it was preparing to withdraw in September last, nor is the country faced with the necessity of equipping them, and of maintaining overseas military and naval forces for a year or more of 4,000,000 to 5,000,000 men. The expenditures of $25,000,000,000 to $30,000,000,000 which had been anticipated for the year 1919 will be greatly reduced, and instead of sending new men to the front the Government is bringing back a large portion of the forces which it had been maintaining abroad. Within a few months the country's war financing will have been completed, and the Board can then deal with the problems incident to bringing our credit structure and our banking operations back to a commercial basis. Our banking situation is strong and inherently sound, and is much stronger than would have been the case had the war continued for another year. On December 31 the Federal Reserve Banks held a reserve of 'about 50 per cent against their combined liability for deposits and note issues, and if the reserve against deposits be computed on the basis of the legal requirement of 35 per cent, the reserve against Federal Reserve notes would be 60 per cent. The ability of the country to absorb investments has proved to be far greater than had been anticipated, and our credit structure, although expanded, is unshaken. We have no currency problems, and conditions are not comparable with those which existed at the close of the Civil War, and while the volume of circulation is larger than it has been at any period in our ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 87 history, there has been no depreciation in the gold value of our currency, every form of which is on an absolute parity with gold. True, the purchasing power of money has declined, but this is due to the abnormal and urgent demands for goods and services and the accompanying expansion of credit and currency. The quality of our currency has been maintained; there is a single standard of prices which is based upon the dollar, and not a double standard, one based upon the gold dollar and the other upon the paper dollar, as was the case during and after the Civil War. The increased volume of Federal Keserve notes has been an incident or an effect of expansion of credits, rather than the cause of such expansion, and the conditions which resulted in additions to the country's gold stock of more than $1,000,000,000 during the years 1915 and 1916 have changed. With the development of our foreign trade, with increased shipping facilities, and with the granting of credits to other nations to aid them in their work of reconstruction and to enable us to sell them goods, a new influence will be felt in due course, which will work toward the restoration of more normal levels. Banking credits, which are not extended beyond our power to sustain them, but which are at present concentrated in this country, will become more widely diffused throughout the world, and the elastic quality of our currency, the main constituent of which is now the Federal Reserve note, will soon be manifest, as indeed it has already been evidenced in some degree by the retirement of approximately $200,000,000 of notes since the close of the year. An obligation rests upon the American people to assist the Government in the completion of its financial program and to absorb the securities which have been and are yet to be issued. This absorption can be accomplished by reasonable economies .and by persistent saving for some time to come, and it will be the duty of the Federal Reserve Board and of the banks in the meanwhile to aid in the extension of credit facilities, necessary in the processes of production and distribution. Drastic contraction would be followed by results no less disastrous than those which would attend undue expansion, and the processes of deflation must therefore be permitted to work themselves out in a gradual and orderly manner. Discount rates, which for the past 18 months have been based upon the rates borne by Government issues, must for the time being continue to be fixed with regard to Treasury requirements, but when the war obligations of the Government have been digested, and -the invested assets of the Federal Reserve Banks have been restored to a commercial basis, rates can be established with reference to the commercial requirements of the country. 88 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. The Board is profoundly conscious of the responsibilities imposed upon it by the Federal Eeserve Act, and during the period of readjustment and afterwards as progress is made in the reestablishment of peace conditions, its purpose will be to exercise its control of our credit structure in such manner as best to promote the national welfare, the agricultural, industrial, and commercial interests of the country, and the development of our foreign trade. By direction of the Federal Eeserve Board. W. P . G. HARDING, Governor. The SPEAKER OF THE H O U S E OF REPRESENTATIVES. EXHIBITS. 89 Exhibit A—DISCOUNT RATES. No. 1.—Discount rates (high and loiv) in force during the period from Nov. 16, 1914, to Dec. 31, 1918. MATURITIES. Within 15 days, including Within 11 to 30 member 16 t o 30 31 to 60 61 to 90 days. days. 10 days. days. banks' days. collateral notes. 4* Boston: Nov. 16, 1914, to Dec. 31,1915 Jan. 1,1916, to Dec. 31,1916 Jan. 1,1917, to Dec. 31, 1917 Jan. 1,1918, to Dec. 31,1918 New York: Nov. 16,1914, to Dec. 3 1 , 1 9 1 5 . . . Jan. 1,1916, to Dec. 31,1916 Jan. 1,1917, to Dec. 31,1917 Jan. 1,19^8, to Dec. 31,1918 Philadelphia: Nov. 16,1914, to Dec. 31,1915 Jan. 1,1916, to Dec. 31,1916 Jan. 1,1917, to Dec. 31,1917 Jan. 1,1918, to Dec. 31,1918 a i 6 3 31 3 i 1 i 6 4 i 1 i ^ 4 3* 4 4 4 51 3 3 3 1 t-3 51 4 31 4 4 4 4 4f 5 5 1 4H i E 4 4 4 4| 4 4 4 4f 6 5 5 5 4 4 4 41 6 5 5 5 3 31 6 4 5 5 •4 4 41 4 41 4 4f 41 4f 41 6 4 4 4 4 41 6 6 4 31 4 4 4 5 5 A£;ricultural and livestock paper over 90 days. 41 41 be o H3 Secured by United States Government war obligations. Within 15 days, including to 90 member 16 banks' days. collateral notes. •a i be w 1 Trade Comaccept- Trade ances accept- modity within ances paper 60 days 61 to 90 within 1 days. 90 days. (see note). i w o >A 31 4 31 31 31 4 31 31 4 41 31 31 31 4 31 3 5 5 31 31 4 31 4 4 31 4£ 4 41 5 31 5 31 31 3 4 4 31 31 4 4 41 w w 31 31 3 4 31 4 4 31 31 5 o 31 31 4 41 5 5 5 i o H3 3* 3* 4 3 3 3 3 31 3 31 3 4 3 41 4 41 31 31 3* 31 3 4 31 31 4 41 4 4 4f 4 31 4J 4 41 4 41 4 4f 41 4f i Commodity rates were established during September and October, 1915, and merged with those for commercial paper of corresponding maturities in November and December 1917. 5J 3 31 3 51 4 6 4 4 4 4 4 41 6 41 5 5 *k 41 41 5 3 3 31 4 3 No. 1.—Discount rates (high and low) in force during the period from Nov. 16, 1914, to Dec. 31, 1918—Continued. CD to MATURITIES—Continued. Within A?5ri15 d a y s , cultural includand ing W i t h i n 11 t o 30 16 to 30 31 t o 60 61 t o 90 live10 d a y s . d a y s . m e m b e r days. days. days. stock banks' paper collatover 90 eral days. notes. i Cleveland: N o v . 16,1914, t o D e c . 31,1915 J a n . 1,1916, t o D e c . 31,1916 6 31 •a H! a 31 ! 6 4 3* o 1 a•a a to H1 1-' •aa o Hi Hi a 1W .5? o H3 4 6 4 6 41 6 5 4 4i 4 4J 41 5 5 J a n . 1,1917, t o D e c . 31,1917 4 J a n . 1,1918, t o D e c . 31,1918 41 3i 4 41 4 41 4 41 41 5 5 4f 41 4f 41 4i 41 51 5 Secured by United States Government war obligations. Trade Comaccept- Trade Within ances accept- m o d i t y 15 days, ances within paper includ60 d a y s 61 to 90 w i t h i n days. 90 d a y s . ing (see 16 t o 90 member note). days. banks' collateral notes. a 31 4 •a 1 ^la 3 4 3* 41 I H1 81 4 i i i i H^ 31 31 4 31 3 4i 3 4 31 31 4 4| 31 31 31 4 3i 3i 4 31 31 3i 4 w Hi •a w 1 Hi 4 4 4 31 4 4 4 4 4 4 3 4 31 I 3* 31 31 4 3 3 4 41 Richmond: N o v . 16,1914, t o D e c . 31,1915 6 4 6 4 6 4 6 4 6 5 J a n . 1,1916, t o D e c . 31, i916 J a n . 1,1917, t o D e c . 31,1917 4 4 4 4 4 4 4 4 5 41 41 5 4 41 5 4i 41 61 5 5 5 41 5 5 5 J a n . 1,1918, t o Dec. 31,1918 4 '. Atlanta: N o v . 16,1914, t o D e c . 31,1915 4| 6 4 J a n . 1,1916, t o D e c . 31,1916 4 4 6 4 J a n . 1,1918, t o D e c . 31,1918 i 4i •3i 6 4 41 4 4* 5 41 61 4 4 61 4 4 41 41 4 41 4 41 4f 41 6 4 6 41 i 6 4 4 ] 6 41 5 4 J a n . 1,1917, t o D e c . 31,1917 Chicago: N o v . 16, 1914, t o D e c . 31,1915 31 4 4 3§ 4 41 4| 4 4i 4 41 4 5 31 4 i 31 4 3J 31 4 41 31 4 H 41 31 4 31 4 41 4 4| 31 31 4 41 31 31 31 4 3 31 3 31 3 31 3 Jan. 1,1916, to Dec. 31,1916 Jan. 1,1917, to Dec. 31,1917 31 31 4 4 4 Jan. 1,1918, to Dec. 31,1918 4 34 4 44 4f 44 4 5 5 44 4 44 5 44 4 4| 5 44 4| 4^ 5 4| 54 54 6 4 4 4 6 4 4 6 5 44 4! 4 44 4 54 44 44 4f 44 54 54 64 4 4 61 4 4 44 5 44 44 44 5 64 5 5 .5 54 5 44 44 4f 44 5 54 54 4 64 44 44 4 44 64 5 5 54 5 5 5 5 4 4 4 64 44 5 44 4| 44 5* 4-4 44 64 6 44 54 44 54 34 34 34 4 44 34 34 34 5 34 34 34 44 3-4 3 34 4 3 4 44 4 44 34 34 34 34 34 34 4 34 4 4 4f 34 34 4 34 34 34 4 4 4 4| 4 34 34 34 34 34 54 34 4 3 4 34 41 34 4 44 34 4 St. Louis: Nov. 16,1914, to Dec. 31,1915 6 3 Jan. 1,1916, to Dec. 31,1916 Jan. 1,1917, to Dec. 31,1917 3 3 6 4 4 4 4 Jan. 1,1918, to Dec. 31,1918 Minneapolis: Nov. 16,1914, to Dec. 31, 1915 Jan. 1,1916, to Dec. 31,1916 Jan. 1,1917, to Dec. 31,1917 4 6 4 4 4 6 4 Jan. 1,1916, to Dec. 31,1916 Jan. 1,1917, to Dec. 31,1917 Jan. 1,1918, to Dec. 31,1918 Dallas: Nov. 16,1914, to Dec. 31,1915 Jan. 1,1916, to Dec. 31,1916 Jan. 1,1917, to Dec. 31,1917 Jan. 1,1918, to Dec. 31,1918 San Francisco: Nov. 16,1914, to Dec. 31, 1915 Jan. 1,1916, to Dec. 31,1916 Jan. 1,1917, to Dec. 31, 1917 Jan. 1,1918, to Dec. 31,1918 1 2 44 6 31 6 4 44 34 44 4 4 4 6 4 4 44 4 4 6 4 44 4f 4 Jan. 1,1918, to Dec. 31,1918 ^ansas City: Nov. 16,1914, to Dec. 31,1915 34 4 4 4 44 4| 4 m 4 4 44 44 64 44 44 44 4 Si 44 H 44 64 4 4 4 44 4 44 41 44 4 4 4 *2 6 3 6 34 3 3 34 34 34 4 44 4f 4 44 4 64' 4 4 4 4 41 34 4 44 5 34 44 44 5 34 44 fri 64 4 44 0 64 44 44 5 4 4 44 44 5 34 4 34 34 4 4| 34 4 3 34 34 34 4 34 4'i 3 4 34 4i 3 34 4 4 i 34 4 34 4 44 34 34 4 34 34 4 41 34 4 34 44 34 4 3 3 4 4| 34 4i 34 34 4 4^c 4 3 3 3 4 4-4 34 34 4 44 3 4 4 3 3 4 3 3 3 34 4 4 3 4 34 3 34 4 34 44 4 34 34 4 41 34 34 3 4 3 3 3* 3 3 *3^ 3 6 54 5-4 54 34 34 34 4 0) (i) 0) C1) C 1 ) (2) Commodity paper rates for bills maturing within 30 days, 34 per cent; 31 to 60 days, 4 per cent; 61 to 90 days, 44 per cent. Oct. 20,1917, rate of 34 per cent for commodity paper maturing within 60 days and 4 per cent for paper maturing after 60 days but within 90 days. NOTE.—In cases during 1918 where the 60-day trade acceptance rate was higher than the 15-day discount rate, trade acceptances maturing within 15 days were taken at the lower rate. Exhibit B—FEDERAL RESERVE NOTES. CO No. 2.—Net amount of Federal Reserve notes received from the Comptroller of the Currency, issued to each Federal Reserve Bank and in actual circulation; gold and eligible paper held by each Federal Reserve Agent; also amounts of Federal Reserve notes held by each Federal Reserve Bank on the last Friday in each month during the calendar year 191S. [In thousands of dollars; i. e., 000 omitted.] Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. St. Louis. Minneapolis. Kansas City. Dallas. ? San rancisco.| Total. Federal Reserve notes received from the o w Comptroller of Currency less notes re55, 743 80,238 70,340 55,016 81,780 54,180 83,033 93,031 1,806,597 H O *) H 84,845 53,674 103,148 1,924,096 w 86,520 52,882 61,713 86,595 52,353 121,933 134,454 2,006,687 2,096,018 63,697 92,463 51,432 145,032 2,292,070 67,997 100,843 53,546 166,840 2,479,448 110,437 80,454 112,062 72,548 192,080 2,739,825 125,194 92,998 127,641 79,964 125,604 94,585 127,803 79,455 202,286 213,074 2,964,600 3,088,643 132,907 105 418 126,940 78,352 229,250 3,140,529 turned for destruction: Jan. 25 85,914 587,407 112,476 93,156 586,427 120,083 Mar. 28-29 104,173 643,859 127,911 Apr.26 119,251 661,907 154,404 May31 123,152 680,878 158,219 June 28 127,973 722,286 172,653 July 26 151,685 785,755 189,996 Aug. 30 158,343 821, 741 204,403 Sept. 27 170,008 865,377 219,675 Oct. 25 184,084 905,244 242,616 Nov. 29 182,858 941,177 257,353 Bee. 27 183,253 920 937 259,846 Feb. 21 5 123,850 131,443 151,100 164,932 180,235 19L896 21075b9 236,172 252,259 264,607 281,724 78,261 232,319 64,964 57,708 64,902 77,548 239,446 64,098 56,736 73,457 75,381 268,879 72,769 60,077 78,820 76,568 290,087 75,030 61,430 85,820 75,598 303,273 77,646 60,531 88,097 60,058 320,914 77,026 91,319 76,695 349,467 84,020 103,789 93,995 374,528 97,251 120,163 128,597 416,165 137,979 152,060 449,927 153,133 160,455 471,422 157,375 168,668 493,692 65,695 70,092 1,614,667 1,642,228 g Federal Reserve notes issued t o Federal Reserve Banks (net amount): Jan. 25 80,754 477,607 97,236 108,410 61,275 63,821 190,339 58,339 50,868 59,872 44,873 80,238 1,373,632 W Feb. 21 85,796 493,227 105,403 121,363 58,797 62,418 201,425 60,813 51,596 63,280 42,581 83,033 1,429,732 o 95,453 528,659 121,671 137,340 68,502 58,376 224,399 68,009 54,582 73,620 40,345 93,031 1,563,987 Apr.26 104,211 546,107 127,864 146,492 72,620 60,173 242,607 67,950 55,935 77,085 36,464 103,148 May 31 109, 412 568,078 144,479 159,395 79,560 59,073 258,593 68,256 55,876 78,310 33,582 June 28 116,673 612,286 159,613 169,896 80,392 58,033 276,454 71,126 56,458 79,575 33,863 121,933 134,454 1,640,656 1,736,547 July 26 128,885 664,355 175,456 189, 709 84,954 58,960 298,567 76,970 59,142 84,243 33,207 145,032 Mar. 28-29 1,848,823 1,999,480 Aug. 30 Sept. 27 Oct. 2 5 . . Nov.29 Dec. 27 Gold coin and certificates deposited with or to credit of Federal Reserve Agents: Jan. 25 Feb. 21 Mar. 29 Apr. 26 May 31 June 28 July26 Aug. 30 Sept. 27 , Oct. 25 Nov. 29 Dec. 27 Eligible paper held by Federal Reserve Agents: Jan. 25 Feb. 21 Mar. 29 Apr. 26 May31 June 28 July26 Aug. 30 Sept. 27 Oct. 25 Nov. 29 Dec. 27 141,743 151,04S 705,941 165,884 813,244 162,338 829,977 169,413 198,283 210.755 216,232 253,347 811,137 230.756 231,833 242,206 44,354 48,696 48,453 48,211 63,122 62,348 56,445 59,953 58,925 67,971 70,785 60,160 236,467 254,887 196,319 208,827 247,264 265,795 279,859 297,613 286,671 285,627 282,220 294,894 64,916 71,083 79,751 82,744 86,059 93,053 99,389 112,195 110,208 119,189 78,605 100,918 36,703 57,868 72,487 70,913 66,875 72,811 115,471 100,934 122,682 145,124 168,931 146,086 245,780 354,066 378,803 555,283 541,695 375,078 500,428 683,514 832,937 722,973 877,900 721,698 37,322 36,622 47,532 57,638 58,853 72,474 87,415 89,145 105,528 116,765 166,907 150,926 770,177 96,889 113,563 126,819 145,073 151,155 68,245 101,342 119,565 120,250 126,253 333,188 370,985 403,807 424,302 452,852 64,610 80,903 88,680 92,292 117,295 116,916 110,629 135,052 153,479 149,324 132,321 138,669 26,305 25,888 29,374 29,880 32,870 32,287 32,950 39,091 47,293 60,968 60,833 64,990 47,575 48,112 39,495 33,832 37,593 33,202 26,339 21,769 36,340 45,844 44,399 44,012 120,514 142,980 165,223 138,432 164,418 182,279 118,392 168,013 206,111 193,672 244,167 267,717 34,882 40,016 41,047 33,408 40,624 39,004 31,496 51,719 56,615 48,992 53,083 63,771 62,338 44,330 66,139 78,840 57,750 ' 70,158 114,264 115,581 114,792 135,362 175,019 167,065 45,657 38,613 44,663 50,859 50,286 56,185 61,784 62,409 71,158 69,556 84,821 86,793 16,303 14,589 19,227 26,608 21,581 25,535 32,744 46,888 66,433 77,872 80,073 82,769 70,776 61,448 64,769 133,445 111,847 134,511 243,859 229,256 261,933 274,955 221,391 235 860 28,032 26,044 34,818 49,885 33,355 54,570 54,296 48,317 58,598 * 73,928 70,179 71,624 237,359 260,344 264,911 91,451 62,677 107,317 78,014 111,859 87,488 117,869 88,635 166,840 192,080 202,286 213,074 229,250 2,218,938 2,494,205 2,697,090 2,773,043 2,855,604 46,134 793,829 43,229 877,023 852,192 93,823 103,342 119,221 119,383 119,420 43,626 58,223 62,814 59,965 60,432 37,522 41,050 39,536 35,089 34,530 26,012 23,596 22,751 29,378 48,232 57,279 56,112 48,369 55,664 55,384 45,158 36,908 33,679 33,497 52,643 57,489 47,322 52,799 54,549 22,181 24,515 17,363 14,261 19,147 14,045 13,980 13,862 24,286 24,215 22,500 22,391 94,936 93,642 117,550 120,126 1,161,731 1,184,998 14,170 10,753 15,937 23,603 23,884 39,342 51,812 54,202 61,582 39,260 38,859 56,293 12,856 14,668 45,140 47,244 62,372 51,569 78,384 59,071 73,940 87,422 79,459 70,801 22,762 18,275 23,848 30,722 31,002 28,816 39,536 43,050 57,308 48,077 52,998 53,612 41,664 55,579 50,108 45,319 52,823 50,563 73,253 81,447 107,480 110,348 98,051 112,830 634,363 732,855 863,471 1,170,359 1,112,323 1,031,612 1,453,246 1,613,814 1,934,371 1,901,642 2,114,588 1,956,357 129,607 51,567 62,084 824,218 76,089 955,919 987,870 910,420 1,061,597 89,250 1,216,541 1,288,309 CO OX No. 2.—Net amount of Federal Reserve notes received from the Comptroller of the Currency, issued to each Federal Reserve Bank, Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. St. Louis. Minneapolis. Kansas City. Dallas. etc.—Continued. San Francisco. I Total. Federal Reserve notes held by banks: 256 212 249 842 384 12,757 138,698 11,154 115,151 12,195 111,149 10,161 114,424 10,976 135,579 1,237 457 322 9,167 126,607 11,087 128,645 12,174 126,230 1,032 872 11,699 144,879 14,580 189,178 11,865 204,367 6,910 1,173 854 17,558 170,360 48,930 55,278 44,617 67,481 1,234,934 50,507 58,719 42,369 71,879 1,314,581 53,538 68,392 40,096 80,836 1,452,838 Jan 25 4,882 80,145 5, 3,654 8,132 4,082 10,174 2,278 1,938 4,594 Feb. 21 2,095 66,670 3, 3,929 5,382 3,481 10,983 2,368 1,089 4,561 Mar. 29 2,664 51,061 7, 5,861 6,910 1,448 12,629 4,451 1,044 5,228 Apr. 26 2,744 45,467 6, 6,256 11,040 1,632 15,452 7,083 1,204 5,755 May 31 4,937 50,970 10, 8,967 11,949 1,984 23,430 3,540 2,266 5,456 June 28 4,140 49,438 12, 6,978 5,867 1,894 23,815 5,464 1,245 5,179 July 26 3,126 43,916 12, 12,093 6,135 1,723 26,790 4,244 1,054 5,482 Aug. 30 4,926 46,175 13, 10,641 4,573 2,900 18,382 6,533 738 5,826 Sept. 27 2,995 70,527 10, 9,277 8,064 3,401 12,169 7,147 1,593 5,992 Oct. 25 14,092 91,305 15, .8,776 8,009 2,983 18,770 4,695 957 8,176 Nov. 29 11,432 109,683 1,103 12,809 10,606 3,099 20,668 6,466 1,038 7,425 Dec. 27 6,208 74,585 1,725 9,425 13,037 3,489 19,077 8,885 1,607 Jan. 25 75,872 •397,462 91,430 104,756 53,143 59,739 180,165 56,061 Feb. 21 83,701 426,557 102,176 117,434 53,415 58,937 190,442 58,445 Mar. 29 92,789 477,598 114,262 131,479 61,592 56,928 211,770 63,558 Federal Reserve notes issued by each Federal Reserve Bank and in actual circulation: Apr. 26 101,467 500,640 121,076 140,236 61,580 58,541 227,155 60,867 54,731 71,330 35,622 92,987 1,526,232 May 31 104,475 517,108 133,759 150,428 67,611 57,089 235,163 64,716 53,610 72,854 33,198 110,957 1,600,968 June 28 112,533 562,848 147,430 162,918 74,525 56,139 252,639 65,662 55,213 74,396 32,626 125,287 1,722,216 July 26 125,759 620,439 162,918 177,616 78,819 57,237 271,777 72,726 58,088 78,761 32,750 133,945 1,870,835 Aug. 30 136,817 359,766 185,243 205,591 92,316 65,345 314,806 84,918 61,939 87,997 43,304 154,666 2,092,708 Sept. 27 148,053 699,650 199,772 228,082 105,499 97,941 358,816 100,170 76,421 97,350 57,191 180,381 2,349,326 Oct 25 151,792 721,939 214,793 244,571 118,810 116,582 385,037 107,164 86,531 111,045 61,942 187,706 2,507,912 Nov ,29 150,906 720,294 223,730 247,535 134,467 117,151 403,634 111,403 87,597 111,958 58,792 201,209 2,568,676 Pec. 2 7 . . 163,205 736,552 233,481 255,486 138,118 122,764 433,775 120,722 97,361 112,510 59,578 211,692 2,685,244 CO N o . 3.—Federal Reserve notes outstanding (i. e., net amount issued to Federal Reserve Banks), in actual circulation and gold and paper collateral held by Federal Reserve agents against outstanding notes. [In thousands of dollars; i. e., 000's omitted.] Federal Reserve notes issued to Federal Reserve Banks, net amount. Paper collateral for notes issued. Gold cover for notes issued. redemp- In gold Gold coin In tion fund, settlement fund, and United Federal certificates States Reserve in vault. Treasurer. Board. Total gold. Amount required. Actual amount held. Excess of paper held. Federal Reserve notes held byFederal Reserve Banks. Federal Reserve notes in actual circulation. 1918, Jan. Feb. Mar. Apr. May 4 11 18 25 1 8 15 21 1 8 15 22 29 5 12 19 26 3 10 17 1,366,335 1,368,148 1,373,105 1,373,632 1,367,858 1,373,660 1,392,484 1,429,732 1,464,645 1,505,213 1,520,296 1,558,705 1,563,987 1,607,627 1,625,698 1,639,056 1,640,656 1,671,168 1,707,522 1,710,240 269,951 264,490 274,000 276,894 269,862 296,717 290,923 292,877 276,987 278,207 266,824 271,658 253,524 252,391 245,251 243,530 245,954 249,955 253,452 236,950 41,158 42,317 46,182 45,596 44,872 43,830 44,512 45,699 49,747 47,986 47,984 47,021 48,926 50,038 48,504 50,043 50,521 49,061 48,554 50,004 486,082 477,519 476,545 471,339 466,933 497,712 516,940 538,447 558,612 570,509 554,820 560,126 549.742 570,648 563,737 561,249 527.743 563,280 583,021 628,582 797,191 784,326 796,727 793,829 781,667 838,259 852,375 877,023 885,346 896,702 869,628 878,805 852,192 873,077 857,492 854,822 824,218 862,296 885,027 915,536 569,144 583,822 576,378 579,803 586,191 535,401 540,109 552,709 579,299 608,511 650,668 679,900 711,795 734,550 768,206 784,234 816,438 808,872 822,495 794,704 608,324 608,898 609,056 634,363 628,792 574,704 575,434 732,855 782,777 813,275 821,052 852,674 863,471 876,860 1,006,691 1,077,622 1,170,359 1,118,009 1,178,056 1,081,095 39,180 25,076 32,678 54,560 42,601 39,303 35,325 180,146 203,478 204,764 170,384 172,774 151,676 142,310 238,485 293,388 353,921 309,137 355,561 286,391 115,130 125,949 134,308 138,698 131,757 112,441 111,439 115,151 113,554 121,223 114,068 129,196 111,149 127,707 126,321 124,769 114,424 114,508 137,904 140,795 1,251,205 1,242,199 1,238,797 1,234,934 1,236,101 1,261,219 1,281,045 1,314,581 1,351,091 1,383,990 1,406,228 1,429,509 1,452,838 1,479,920 1,499,377 1,514,287 1,526,232 1,556,660 1,569,618 1,569,445 SO -a No. 3.—Federal Reserve notes outstanding (i. e.t net amount issued to Federal Reserve Banks), in actual circulation and gold and paper collateral held 00 by Federal Reserve agents against outstanding notes—Continued. [In thousands of dollats; i e., 000 omitted.] Federal Reserve notes issued to Federal Reserve Banks, net amount. Paper collateral for notes issued. Gold cover for notes issued. In gold In redempGold coin tion fund, settlement and fund, United certificates Federal States in vault. Reserve Treasurer. Board. Total gold. Amount required. Actual amount held. Excess of paper held. Federal Reserve notes held by Federal Reserve Banks. Federal Reserve notes in actual circulation. 1918 May 24 724,685 228,449 53,080 648,652 930,181 794,504 1,155,877 361,373 146,064 31 736,547 232,448 53,428 670,043 955,919 780,628 1,112,323 331,695 135,579 1,600,968 7 769,876 228,446 52,221 677,588 958,255 811,621 1,193,629 382,008 130,297 1,639,579 14 793,393 225,444 51,994 673,707 951,145 842,248 1,219,848 377,600 141,893 1,651,500 21 805,518 215,445 54,587 687,206 957,238 848,280 1,127,797 279,517 127,567 1,677,951 28 848,823 223,945 55,404 708,521 987,870 860,953 1,031,612 170,659 126,607 1,722,216 5 917,152 214,944 56,873 690,258 962,075 955,077 1,224,983 269,906 125,583 1,791,569 12 963,729 203,444 58,378 701,325 963,147 1,000,582 1,313,041 312,459 150,304 1,813,425 June July 1,578,621 19 982,603 197,944 60,602 681,744 940,290 1,042,313 1,356,726 314,413 153,558 1,829,045 26 999,480 202,239 59,859 648,322 910,420 1,089,060 1,453,246 364,186 128,645 1,870,835 2 028,180 201,239 59,851 641,703 902,793 1,125,387 1,425,437 300,050 121,715 1,906,465 9 088,473 212,240 60,296 668,156 940,692 1,147,781 1,480,179 332,398 133,197 1,955,276 16 118,948 217,238 60,959 683,301 961,498 1,157,450 1,463,844 306,394 133,529 1,985,419 23 163,837 220,239 63,419 735,109 1,018,767 1,145,070 1,573,109 428,039 131,000 2,032,837 30 218,938 219,239 61,708 780,650 1,061,597 1,157,341 l,613j,814 456,473 126,230 2,092,708 Sept. 6 319,772 219,240 61,690 806,830 1,087,760 1,232,012 1,719,854 487,842 139,093 2,180,679 13 388,845 217,240 65,788 840,104 1,123,132 1,265,713 1,797,546 531,833 143,434 2,245,429 20 446,194 217,240 70,608 858,102 1,145,950 1,300,244 1,864,987 564,743 151,163 2,295,031 27 494,205 214,239 73,363 874,129 1,161,731 1,332,474 1,699,364 366,890 144,879 2,349,326 4 583,418 208,239 113,060 860,186 1,181,485 1,401,933 1,942,433 540,500 152,414 2,431,004 10 623,339 208,167 77,477 871,356 1,157,000 1,466,339 2,049,522 583,183 144,961 2,478,378 Aug. Oct. 18 25 Nov. 1 8. 15 22 29 Dec. 6. 13 20. 78,053 78,609 81,776 78,586 78,352 78,793 77,991 75,679 74,376 79,074 81,951 894,229 899,213 1,173,521 1,184,998 1,493,503 1,512,092 867,907 868,878 1,149,859 1,145,640 878,051 878,498 1,166,579 l,595,23j3 1,168,917 1,216,541 1,599,860 1,556,502 1,207,377 1,167,771 1,194,228 1,534,475 1,288,309 925,923 900,071 843,068 868,827 960,031 2,012,927 1,901,642 519,424 164,536 389,550 189,178 2,502,488 2,507,912 1,560,821 2,060,652 1,598,046 2,110,238 2,120,296 499,831 518,192 195,176 185,490 2,558,196 2,006,806 525,063 406,946 199,295 213,562 2,114,588 558,086 204,367 1,596,928 1,621,222 2,161,189 2,176,410 1,913,404 626,714 579,482 292,182 157,329 160,119 1,567,295 1,956,357 389,062 151,749 170,360 2,515,504 2,562,517 2,555,215 2,568,676 2,584,523 2,604,580 2,663,701 2,685,244 W FEDERAL RESERVE K 201,239 207,176 200,176 198,176 210,176 211,626 212,627 231,627 250,327 246,327 246,327 IBI1 : B 27. 667,024 697,090 710,680 740,686 161,812 768,777 773,043 741,852 764,699 815,450 855,604 O H m No. 4.—Total Federal Reserve notes in circulation and per cent of gold cover therefor during the calendar year 1918. [In thousands of dollars, i. e., 0C0 omitted.] 1918 Jan. 4, 11. 18. Feb. Mar. Apr. May June 25. 1. 8. 15. 21. 1. 8. 15. 22. 29. 5. 12. 19. 26. 3. 10. 17. 24. 31. 7. 14. 21. Balance available Reserves as reserve Federal Re-| required Total cash against serve notes against reserves. deposits,ne3i Federal Re-| in actual serve notes per cent. in circula- circulation. tion. 1,733,030 1,748,031 1,784,307 1,782,759 1,775,457 1,813,094 1,818,736 1,832,524 1,837,773 1,847,883 1,852,193 1,862,372 1,874,063 1,877,433 1,894,995 1,898,307 1,890,945 1,919,983 1,942,500 1,952,712 1,956,056 1,975,709 1,977,724 2,005,263 1,981,111 2,006,199 506,180 505,716 523,735 522,507 520,813 525,999 491,272 511,919 503,960 515,354 512,582 527,021 537,378 535,277 536,839 525,786 544,706 532,335 577,963 533,559 545,166 555,313 551,727 556,070 505,891 535,437 1,226,850 1,242,315 1,260,572 1,260,252 1,254,644 1,287,095 1,327,464 1,320,605 1,333,813 1,332,529 1,339,611 1,335,351 1,336,685 1,342,156 1,358,156 1,372,521 1,346,239 1,387,648 1,364,537 1,419,153 1,410,890 1,420,396 1,425,997 1,449,193 1,475,220 1,470,762 1,251,205 1,242,199 1,238,797 1,234,934 1,236,101 1,261,219 1,281,045 1,314,581 1,351,091 1,383,990 1,406,228 1,429,509 1,452,838 1,479,920 1,499,377 1,514,287 1,526,232 1,556,660 1,569,618 1,569,445 1,578,621 1,600,968 1,639,579 1,651,500 1,677,951 1,722,216 Gold reserve against Federal Reserve notes in circulation. Per cent. 98.1 100.0 101.8 102.1 101.5 102.1 103.6 100.5 98.7 96.3 95.3 93.4 92.0 90.7 90.'6 90.6 88.2 89.1 86.9 90.4 89.4 88.7 87.0 87.8 87.9 85.4 Reserves required Total cash against reserves. deposits,net 35 per cent. July 5. 12. 19. 2S. Aug. 2. 9. 16. 23. 30. Sept. 6. 13. 20. 27. Oct. 4. 11. 18. 25. Nov. 1. 8. 15. 22. 29. Dec. 6. 13. 20. 27. 2,015,163 2,015,984 2,031,095 2,029,329 2,034,918 2,044,523 2,045,523 2,055,266 2,066,962 2,070,494 2,077,732 2,076,039 2,072,176 2,077,371 2,083,358 2,087,685 2,098,169 2,105,685 2,100,839 2,109,816 2,116,257 2,120,371 2,121,367 2,134,263 2,133,624 2,146,219 515,874 543,782 548,338 568,005 545,594 551,713 529,377 557,924 550,514 560,578 567,758 570,242 583,488 562,192 573,356 553,281 603,366 582,182 581,532 582,987 571,470 583,899 596,523 585,454 542,413 543,502 Balance available as reserve Federal Re-J against serve notes Federal Re-| in actual serve notes circulation. in circulation. 1,499,289 1,472,202 1,482,757 1,461,324 1,489,324 1,492,810 1,516,146 1,497,342 1,516,448 1,509*, 916 1,509,974 1,505,797 1,488,688 1,515,179 1,510,002 1,534,404 1,491,803 1,523,503 1,519,307 1,526,829 1,544,787 1,536,472 1,524,844 1,548/809 1,591,211 1,602,717 1,791,569 1,813,425 1,829,045 1,870,835 1,906,465 1,955,276 1,985,419 2,032,837 2,092,708 2,180,679 2,245,429 2,295,031 2,349,326 2,431,004 2,478,378 2,502,488 2,507,912 2,515,504 2,558,196 2,562,517 2,555,215 2,568,676 2,584,523 2,604,580 2,663,701 2,685,244 TOTAL FEDERAL RESERVE NOTES IN CIRCULATION AND PER CENT OF60LD COVER THEREFOR DURING THE CALENDAR YEAR 1918. §1 (tore!;Mvnimtzm,3tequired&qu)sit3leserve. *~ GirreZiJotalGzsKfieserres. Gzriv3s3?3l.Mte6in(jrcuXc6w GrcalcUioiv. \100\ \\m- \do\ \so. iso\P0] \?Q '\60\ [so \<o\*o\ \&\ \30\ \20\ \io JO- WMimAMIMISlWmfflmMZMimM 613 2Q274 // IS 251 <? DECEMBERS S&TEMBmOCTQBER \MOVEMBER [o No. 5.—Statement of Federal Reserve notes by denominations, printed, shipped to Federal Reserve agents and United States subtresuries, and on nand c in reserve vault Dec, 31, 1918. Bank. Fives. Tens. Twenties. Fifties. Hundreds. 5110,480,000 $74,240,000 §30,000,000 §29,200,000 110,480,000 73,440,000 12,400,000 17,600,000 $302,800,000 272,560,000 800,000 17,600,000 11,600,000 30,240,000 Thousands. Total. • Boston: Printed $58,880,000 Shipped 58,640,000 On hand 240,000 d w New York: Printed 350,800,000 465,000,000 340,880,000 100,600,000 194,000,000 $36,000,000 1,487,280,000 Shipped 268,800,000 455,360,000 328,720,000 82,400,000 156,400,000 8,000,000 1,299,680,000 O W 82,000,000 9,640,000 12,160,000 18,200,000 37,600,000 28,000,000 187,600,000 O 59,460,000 114,200,000 155,840,000 393,700,000 100,120,000 145,360,000 34,200,000 24,400,000 30,000,000 56,740,000 20,000,000 346,620,000 w 2,720,000 14,080,000 10,480,000 9,800,000 10,000,000 47,080,000 On hand Philadelphia: Printed Shipped On hand Cleveland; Printed 44,880,000 78,040,000 152,880,000 63,800,000 20,000,000 359,600,000 Shipped 37,64^0,000 70,240,000 143,360,000 59,400,000 18,400,000 329,040,000 7,240,000 7,800,000 9,520,000 4,400,000 1,600,000 30,560,000 41,240,000 34,460,000 62,680,000 78,480,000 27,200,000 22,800,000 232,400,000 53,200,000 68,320,000 22,200,000 16,400,000 194,580,000 6,780,000 9,480,000 10,160,000 5,000,000 6,400,000 37,820,000 50,840,000 71,360,000 92,480,000 15,200,000 17,600,000 247,480,000 43,780,000 68,440,000 72,400,000 11,200,000 12,400,000 208,220,000 7,060,000 2,920,000 20,080,000 4,000,000 5,200,000 39,260,000 On hand Richmond; Printed Shipped H W O < W On hand Atlanta: Printed Shipped On h a n d ,• . •* . - ^ • ,....- o Chicago: Printed Shipped On hand 1 St. Louis: Printed Shipped On hand Minneapolis: Printed Shipped On hand On hand On hand On hand 240,560,000 232,800,000 41,200,000 28,400,000 619,380,000 38,000,000 5,260,000 3,440,000 7,760,000 14,600,000 12,800,000 43,860,000 52,600,000 575,520,000 45,760,000 61,680,000 70,560,000 10,800,000 7,600,000 43,020,000 61,280,000 64,880,000 8,800,000 6,000,000 196,400,000 183,980,000 1 2,740,000 400,000 5,680,000 2,000,000 1,600,000 12,420,000 45,820,000 37,040,000 51,880,000 49,440,000 4,000,000 5,200,000 j 50,520,000 40,720,000 2,200,000 4,000,000 156,340,000 134,480,000 1 8,780,000 1,360,000 8,720,000 1,800,000 1,200,000 21,860,000 59,140,000 52,960,000 49,520,000 62,320,000 10,200,000 10,000,000 194,620,000 49,780,000 58,160,000 7,400,000 7,600,000 172,460,000 ! 9,360,000 3,440,000 4,160,000 2,800,000 2,400,000 22,160,000 I 30,240,000 27,180,000 45,720,000 49,840,000 6,000,000 37,880,000 39,680,000 2,800,000 7,600,000 4,000,000 139,400,000 111,540,000 3,060,000 7,840,000 10,160,000 3,200,000 3,600,000 27,860,000 55,540,000 62,040,000 59,640,000 129,200,000 28,200,000 38,800,000 313,780,000 50,400,000 123,680,000 21,000,000 31,200,000 285,920,000 5,140,000 2,400,000 5,520,000 7,200,000 7,600,000 27,860,000 944,180,000 1,359,480,000 1,496,720,000 1 803,800,000 1,296,680,000 1,391,520,000 382,800,000 424,000,000 322,400,000 36,000,000 292,200,000 8,000,000 4,643,180,000 4,114,600,000 90,600,000 101,600,000 28,000,000 528,580,000 | San Francisco: Printed Shipped 183,440,000 180,000,000 1 Kansas City: Printed Shipped Dallas: Printed Shipped 101,580,000 96,320,000 RECAPITULATION. Total printed Total shipped Total on hand | 140,380,000 62,800,000 105,200,000 o CO No. 6.—Federal Reserve notes, by denominations, issued through the Federal Reserve agents to the banks, also amounts retired and outstanding Dec. 31, o 1918. Bank. Boston: Issued Retired Outstanding New York: Issued Retired 1 Outstanding Philadelphia: Issued Retired t Outstanding Cleveland: Issued Retired Outstanding Richmond: Issued Outstanding * L Atlanta: Issued Retired Outstanding l . . Fives. Tens. Twenties. $49,006,600 21,772,900 $98,325,600 26,490,&30 $59,208,200 5,910,140 $7,602,000 1,288,900 $12,602,300 2,295,600 $226,744,700 57,758,370 27,233,700 71,834,770 53,298,060 6,313,100 10,306,700 168,986,330 248,890,350 124,305,355 417,447,800 145,596,480 308,758,400 59,666,980 70,602,450 9,012,950 137,214,000 33,315,400 $8,000,000 1,190,913,000 371,897,165 124,584,995 271,851,320 249,091,420 61,589,500 103,898,600 8,000,000 819,015,835 50,392,700 19,120,385 92,554,800 26,208,210 134,430,200 19,896,460 18,490,000 1,158,600 13,150,000 763,300 309,017,700 67,146,955 31,272,315 66,346,590 114,533,740 17,331,400 12,386,700 241,870,745 35,220,000 8,029,555 67,200,000 12,729,020 139,360,000 12,738,060 50,200,000 3,256,250 12,900,000 1,607,200 304,880,000 38,360,085 27,190,445 54,470,980 126,621,940 46,943,750 11,292,800 266 519 915 37,139,300 15,108,230 59,442,700 19,738,470 73,839,400 16 475,080 21,837,200 2,919,450 15,892,000 2,911,600 208,150,600 557,152,830 22,031,070 39,704,230 57,364,320 18,917,750 12,980,400 150,997,770 47,603,050 25,158,015 69,947,300 30,512,820 79,265,480 24, 984,360 8,110,450 3,966,900 6,407,900 3,091,800 211,334,180 87,713,895 22,445,035 39,434,480 54,281,120 4,143,550 3,316,100 123,620,285 Fifties. Hundreds. Thousands. Total. o w H o H W tei > B W o Chicago: Issued. Retired . Outstanding St. Louis: Issued Retired Outstanding Minneapolis: Issued Retired Outstanding Dallas: Issued Retired 159,840,000 209,520,600 31,000,250 21,200,10C 503,961,000 12,949,290 19,151,750 17,975,100 2,562,850 384,000 53,022,990 69,450,760 140,688,250 191,545,500 28,437,400 20,816,100 450,938,010 40,277,950 59,972,940 64,772,160 7,450,050 6,400,000 178,873,100 . 16,463,565 17,630,620 11,915,440 1,290,100 2,453,500 49,753,225 . 23,814,385 42,342,320 52,856,720 6,159,950 3,946,500 129,119,875 32,842,000 46,975,000 38,295,000 2,040,000 3,100,000 123,252,000 . 12,312,660 7,454,100 4,335,780 182,750 242,300 24,527,590 . 20,529,340 39,520,900 33,959,220 1,857,250 2,857,700 89,724,410 46,324,000 45,610,000 57,114,000 ! 8,860,000 5,420,00( 163,328,000 17,801,670 10,519,640 5,173,400 53,500 43,010,670 Kansas City: Issued Retired Outstanding 82,400,050 9,462,460 . 28,522,330 35,090,360 47,651,540 I 3,686,600 5,366,500 120,317,330 . 23,180,000 42,555,900 43,438,600 3,800,650 6,165,000 119,140,150 . 12,575,030 22,203,530 16,461,160 2,765,850 4,639,500 58,645,070 . 10,604,970 20,352,370 26,977,440 1,034,800 1,525,500 60,495,080 X W W H W CO Outstanding San Francisco: Issued Retired 3 O Outstanding 43.120,000 55,160,000 112,320,000 14,400,000 26,800,000 251,800,000 9,958,495 6,234,620 5,558,800 370,150 439,600 22,561,665 23,161,505 48,925,380 106,761,200 14,029,850 26,360,400 229,238,335 1 736,396,000 1,215,032,040 1,320,322,040 295,555,150 344,470,090 205,379,820 244,393,050 267,251,300 52,197,300 8,000,000 33,948,150 | 440,840,850 210,444,900 215,054,000 8,000,000 g RECAPITULATION. Total issued Total retired Total outstanding 870,561,950 1,114,942,220 3,791,394,430 931,550,510 2,859,843,920 o OX No. 7.—Federal Reserve notes, by denominations, received by agents, issued to the banks, returned to the Comptroller for destruction since organization O of banks, and on hand Dec. SI, 1918, as reported by Federal Reserve agents. RECEIVED FROM COMPTROLLER OF T H E CURRENCY. Federal Reserve agent a t Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. Total. Fives. Tens. Twenties. Fifties. Hundreds. $52,640,000 263,800,000 52,740,000 36,440,000 34,460,000 41,720,000 87,600,000 37,020,000 31,840,000 44,780,000 23,640,000 41,320,000 $101,480,000 445,360,000 94,120,000 70,240,000 53,200,000 65,000,000 170,520,000 54,760,000 48,560,000 45,040,000 33,960,000 54,080,000 $63,440,000 324,720,000 139,360,000 143,360,000 68,320,000 70,320,000 227,440,000 58,800,000 38,880,000 54,080,000 35,520,000 112,320,000 $10,400,000 80,400,000 21,400,000 57,000,000 22,200,000 9,200,000 35,600,000 6,800,000 2,000,000 5,400,000 2,800)000 14,400,000 $14, 800,000 152; 400,000 16; 800,000 16, 800,000 16, 400,000 10, 000,000 26, 000,000 4, 000,000 3, 200,000 6, 400,000 4, 000,000 800,000 748,000,000 1,236,320,000 1,336,560,000 267,600,000 297,600,000 $21,772,900 124,305,355 19,120,385 8,029,555 15,108,230 25,158,015 12,949,290 16,463,565 12,312,660 17,801,670 $26,489,830 145,596,480 26,208,210 12,729,020 19,738,470 30,512,820 19,151,750 17,630,620 7,454,100 10,519,640 $5,912,140 59,666,980 19,897,460 12,738,060 16,475,080 24,984,360 17,975,100 11,915,440 4,335,780 9,462,460 $8,000,000 Total. $242,760,000 1,274,680,000 324,420,000 323,840,000 194,580,000 196,240,000 547,160,000 161,380,000 124,480,000 155,700,000 99,920,000 248,920,000 $1,287,400 9 012,950 $2,296,100 33,315,400 1 157,600 763,300 3; 256,250 2,919,450 1,607,200 2,911,600 d o 3 o H w o 8,000,000 3,894,080,000 - RETURNED BY FEDERAL RESERVE B A N E S . Boston New York Philadelphia. Cleveland Richmond.... Atlanta Chicago St. Louis Minneapolis.. sCity.. Thousands. $57,758,370 371,897,165 67, 146,955 38,360,085 57,152, 830 3,966,900 3,091,800 2; 562,850 1,290,100 384,000 87,713,895 53;022,990 2,453,500 49,753,225 182,750 242,300 24,527,590 173,400 53,500 43,010*670 $ w o Dallas San Francisco Total 9,958,495 22,203,530 6,234,620 16,461,160 5,558,800 2,765,850 370,150 4,639,500 439,600 58,645,070 22,561,665 295,555,150 344,469,090 205,382,820 33,945,650 52,197,800 931,550,510 12,575,030 TOTAL AMOUNTS FOR WHICH F E D E R A L R E S E R V E AGENTS ARE Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago S t . Louis Minneapolis... Kansas C i t y . . . Dallas San Francisco. Total. $74,412,900 388,105,355 71,860,385 44,469,555 49,568,230 66,878,015 100,549,290 53,483,565 44,152,660 62,581,670 36,215,030 51,278,495 $127,969,830 590,956,480 120,328,210 82,969,020 72,938,470 95,512,820 189,671,750 72,390,620 56,014,100 55,559,640 56,163,530 60,314,620 384,386,980 $11,687,400 89,412,950 $17,096,100 185, 715,400 159,257,460 22,557,600 17,563,300 156,098,060 84, 795,080 60,256,250 25,119,450 18,407,200 19,311,600 95,304,360 245,415,100 13,166,900 13,091,800 38,162,850 70,715,440 43,215,780 63,542,460 8,090,100 2,182,750 10,573,400 26,384,000 6,453,500 51,981,160 117,878,800 5,565,850 14,770,150 8,639,500 27,239,600 1,043,555,150 1,580,789,090 1,541,942,820 301,545,650 349,797,800 $7,602,000 70,602,450 $12,602,300 137,214,000 13,150,000 12,900,000 15,892,000 6,407,900 21, 200,100 6,400,000 3,100,000 I S S U E D TO F E D E R A L R E S E R V E Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago S t . Louis Minneapolis.. $69,352,140 ACCOUNTABLE. $49,006,600 248,890,350 50,392,700 35,220,000 37,139,300 47,603,050 82,400,050 40,277,950 32,842,000 $8,000,000 3,442,300 6,453,500 8,000,000 $300,518,370 1,646,577,165 391,566,955 362,200,085 251,732,830 283,953,895 600,182,990 211,133,225 149,007,590 198,710,670 158,565,070 271,481,665 4,825,630,510 X W W i—i 1-3 W 4 W CO BANKS. $98,325,600 417,447,800 92,554,800 67,200,000 59,442,700 69,947,300 159,840,000 59,972,940 46,975,000 $59,208,200 308,758,400 134,430,200 139,360,000 73,839,400 79,265,480 209,520,600 64,772,160 38,295,000 18,490,000 50,200,000 21,837,200 8,110,450 31,000,250 7, 450,050 2,040,000 $8, 000, 000 1,190,913,000 O H 309,017,700 IP $226,744,700 304,880,000 208,150,600 211,334,180 503,961,000 178,873,100 123,252,000 O -3 No. 7.—Federal Reserve notes, by denominations, received by agents, issued to the banks, returned to the Comptroller for destruction since organization o of banks, and on hand Dec. 31, 1918, as reported by Federal Reserve agents—Continued. k 00 ISSUED TO F E D E R A L RESERVE BANKS—Continued. Federal Reserve agent at— Fives. Tens. Twenties. $46,324,000 23,180,000 43,120,000 $45,610,000 42,555,900 55,160,000 $57,114,000 43,438,600 112,320,000 $8,880,000 3,800,650 14,400,000 $5,420,000 6,165,000 26,800,000 736,396,000 1,215,032,040 1,320,322,040 244,393,050 267,251,300 Fifties. Hundreds. Thousands. Total. a Kansas City Dallas San Francisco T otal $163,328,000 119,140,150 251,800,000 $8,000,000 3,791,394,430 R E T U R N E D TO COMPTROLLER FOR DESTRUCTION. Boston St. Louis Kansas City Dallas Total $21,766,300 124,215,005 18,707,685 7,929,555 12,428,930 11,204,965 12,309,240 10,615,615 9,430,660 15,137,670 8,320,030 8,158,495 $26,484,230 145,508,680 25,573,410 12,129,020 12,495,770 10,504,520 19,151,750 12,417,680 6,679,100 8,069,640 8,747,630 5,154,620 $5,903,940 58,828,580 19,147,260 12,658,060 10,235,680 5,818,880 15,574,500 5,943,280 3,080,780 4,428,460 4,522,560 5,558,800 $785,400 8,810,500 1,067,600 1,856,250 1,682,250 184,450 2,562,600 240,050 52,750 173,400 160,200 370,150 $993,800 8,501,400 413,300 407,200 519,600 191,900 383,900 53,500 62,300 53,500 44,500 439,600 $55,933,670 345,864,165 64,909,255 34,980,085 37,362,230 27,904,715 49,981,990 29,270,125 19,305 590 27,862,670 21,794,920 19,681,665 260,224,150 292,916,050 151,007,780 17,945,600 12,064,500 734,851,080 O W H O W B > g % W o IN HANDS OF F E D E R A L R E S E R V E AGENTS DEC. 31,1918. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas S3,640,000 $3,160,000 15,000,000 28,000,000 2,760,000 1,320,000 2,200,000 8,070,000 15,061,000 5,840,000 10,680,000 3,640,000 1,000,000 $4,240,000 16,800,000 5,680,000 4,080,000 720,000 10,220,000 20,320,000 2,590,000 1,880,000 $3,300,000 10,000,000 $3,500,000 $17,840,000 40,000,000 109,800,000 3,000,000 8,200,000 4,000,000 17,640,000 5,100,000 22,340,000 1,600,000 4,872,000 2,900,000 6,220,000 6,492,000 44,715,000 4,600,000 4,800,000 46,240,000 400,000 2,990,000 X 3 1,840,000 2,000,000 4,020,000 1,540,000 980,000 7,520,000 5 4,715,000 2,360,000 1,880,000 4,860,000 1,605,000 2,430,000 17,630,000 W 46,935,000 72,841,000 69,920,000 39,207,000 70,482,000 299,385,000 1,120,000 90,000 280,000 6,450,000 San Francisco. Total. feJ o RECAPITULATION. > Received from Comptroller Returned b y bank Total Issued t o banks On hand Total $748,000,000 $1,236,320,000 $1,336,560,000 295,555,150 205,382,820 344,469,090 1,043,555,150 1,580,789,090 1,541,942,820 736,396,000 1,215, 032,040 1,320,322,040 260,224,150 292,916,050 151, 700, 780 46,935,000 72,841,000 69,920, 000 1, 043,555,150 1,580, 789,090 1,541,942,820 $267,600,000 33,945,650 $297,600,000 52,197,800 301,545,650 349, 797,800 8,000,000 4,825,630,510 ui 244,393,050 8,000,000 3,791,394,430 < o 39,207,000 267,251,300 12,064,500 70,482,000 301,545,650 349,797,800 8,000,000 17,945,600 $8,000,000 $3,894,080,000 931,550,510 734,851,080 299,385,000 4,825,630,510 w H CO No. 8.—Mutilated Federal Reserve notes, by denominations, received and destroyed since organization of banks and on hand in vault Dec. 31, 1918. RECEIVED FOR DESTRUCTION. Bank. Fives. Twenties. $21,215,800 101,235,005 18,525,185 8,045,355 12,448,310 10,959,465 12,135,740 10,408,115 9,336,160 14,996,195 8,277,030 8,203,655 $25, 623,730 112, 588,680 25, 132,410 12 206,220 12,524,390 10 200,020 18; 621,750 12, 104,180 6,579,100 7,992,600 8,664,630 5, 189,660 Total received... Total destroyed. 235,786,015 231,905,150 257,427,370 251,984,830 Balance on hand 3,880,865 5,442,540 Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas. San Francisco , Fifties. Hundreds. Total. $774,800 6,010,500 1,041,900 1,871,600 1,685,000 183,300 2,536,700 234,050 52,650 174,400 159,700 373,350 $982,400 6,501,400 402,000 411,100 520,600 191,900 373.400 53,500 61,300 53,500 44,500 442,700 $54,143,670 268,204,165 63,901,755 35,244.535 37,436,620 27,231,065 48,933,590 28,632,125 19,055,990 27,601,015 21,630,420 19,803,805 133,469,120 130,726,760 15,097,950 14,711,600 10,038,300 9,805,800 651,818,755 639,134,140 2,742,360 386,350 232,500 12,684,615 $5,546, 41,868, 18,800, 12,710, 10,258, 5,696. 15,266, 5,832, 3,026, 4,384 4,484, 5,594, > O W H O H w o NOTE.—During the year, burned, badly mutilated, and fractional parts of Federal Reserve notes amounting to $18,255 have been identified, valued, and the b a n k of issue determined. W O No. 9.—Statement of Federal Reserve Bank notes printed, issued to Federal Reserve Banks since organization, and on hand Dec. 31, 1918, PRINTED, ISSUED, AND ON HAND. I>aiL;. Boston: Printed Issued On h a n d Ones. Twos. FiveG. Twenties. Tens. Fifties. Total. $6,392,000 5,340,000 $1,024,000 $1,200,000 $8,616,000 1,024,000 1,109,000 7,473,000 1,052,000 0 91,000 1,143,000 On h a n d 21,600,000 17,068,000 6,208,000 10,720,000 5,512,000 10,701,000 $1,440,000 1,440,000 39,968,000 34,721,000 4,532,000 696,000 19,000 0 5,247,000 Philadelphia: Printed 6,520,000 1,224,000 2,880,000 440,000 $240,000 Issued 6,360,000 1,144,000 1,901,000 0 0 11,304,000 9,405,000 160,000 80,000 979,000 440,000 240,000 1,899,000 Printed 5,428,000 1,576,000 5,360,000 2,000,000 2,000,000 Issued 4,828,000 1,496,000 4,325,000 0 0 16,364,000 10,649,000 600,000 80,000 1,035,000 2,000,000 2,000,000 5,715,000 4,936,000 696,000 1,040,000 400,000 3,712,000 584,000 0 0 400,000 0 4,296,000 1,224,000 112,000 1,040,000 400,000 400,000 3,176,000 On h a n d Richmond: Printed Issued On h a n d H d m % Cleveland: On h a n d W w t—i »—i New York: Printed Issued telX 7,472,000 O m No. 9.—Statement of Federal Reserve Bank notes printed, issued to Federal Reserve Banks since organization, and on hand Dec. 31,1918—Continued. to P R I N T E D , ISSUED, AND ON HAND—Continued. Bank. Atlanta: Printed Issued 1 On hand Chicago: Printed Issued On hand St. Louis: Printed Issued On hand Minneapolis: Printed Issued Ones. Tivcs. Twos. Tens. Twenties. Fifities. Total. $4,144,000 3,432,000 $936,000 800,000 $2,260,000 1,889,960 $480,000 0 $480,000 0 $400,000 0 $8,700,000 6,121,960 712,000 136,000 370,040 480,000 480,000 400,000 2,578,040 > > w O w 9,324,000 8,796,000 2,176,000 2,176,000 5,340,000 5,300,000 2,960,000 2,631,760 1,600,000 865,600 21,400,000 19,769,360 H O *i 528,000 0 40,000 328,240 734,400 1,630,640 H 3,332,000 3,232,000 1,072,000 1,000,000 1,240,000 1,240,000 1,000,000 1,000,000 6,644,000 6,472,000 d 100,000 72,000 0 0 172,000 3,716,000 2,820,000 1,032,000 992,000 2,220,000 820,000 2,680,000 0 9,648,000 4,632,000 896,000 40,000 1,400,000 2,680,000 5,016,000 H *J P U rn On hand Kansas City: Printed Issued On hand < 3,624,000 2,448,000 912,000 912,000 5,340,000 5,043,120 5,040,000 4,800,000 3,600,000 3,486,000 18,516,000 16,689,120 1,176,000 0 296,880 240,000 114,000 1,826,880 W o Dallas: Printed M o P On AJ.OJJ.VX hand 00 00 o S a n Francisco: 1 Printed cp Issued . On h a n d 2., 828,000 1,868,000 1,160,000 2,140,000 1,512,400 2,400,000 1,960,000 2,000,000 1,136,000 1,760,000 10,528,000 8,236,400 960,000 24,000 627,600 440,000 240,000 2,291,600 4,536,000 808,000 744,000 3,060,000 2,925,000 1,960,000 1,360,000 3,464,000 5,200 0 11,724,000 7,138,200 1,072,000 64,000 135,000 1,954,800 1,360,000 4,585,800 76,380,000 18,824,000 42,800,000 20,800,000 63,368,000 17,520,000 36,766,480 11,836,960 11,680,000 6,111,600 400,000 0 • 170,884,000 135.603.040 13,012,000 1,304,000 6,033,520 8,963,040 5,568,400 400,000 i 35.280.960 00 Recapitulation: Total printed Total issued Total o n h a n d V , , .,„ ISSUED, REDEEMED, AND OUTSTANDING, BY DENOMINATIONS. Issued. Ones Twos Fives Tens Twenties Total Received for destruction and not assorted by denominations, $148,000. _ Redeemed. Outstanding. £63,368,000 17,520,000 36,766,480 11,836,960 6,111,600 $981,700 147,850 562,386,300 17,372,150 2,486,680 34,279,800 9,292,120 135,603,040 7,311,510 2,544,840 1,150,440 4,961,160 128,291,530 114 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. N o . 10.—Statement showing Federal Reserve bank notes, by denominations, issued to Federal Reserve Banks under the provisions of the llPittman Act" up to and including Bee. 31, 1918. Ones. Bank. Twos. Fives. Tens. Total. $5,292,000 $1,024,000 $1,100,000 16,544,000 5,472,000 10,620,000 $1,440,000 6,336,000 1,144,000 1,900,000 4,812,000 1,488,000 4,319,000 3,700,000 584,000 3,420,000 800,000 1,620,000 8,784,000 2,168,000 3,700,000 960,000 3,232,000 1,000,000 1,240,000 1,000,000 2,820,000 820,000 992,000 2,448,000 900,000 912,000 1,868,000 1,136,000 500,000 3, 464,000 500,000 744,000 Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 62, 720,000 Total issued 17, 464,000 27,219,000 3, 400,000 $7,416,000 34,076,000 9,380,000 10,619,000 4,284,000 5, 840,000 15,612,000 6, 472,000 4,632,000 4,260,000 3,504,000 4, 708,000 110,803,000 N o . 11.—Cost of Federal Reserve notes. T h e cost to each Federal Reserve Bank of Federal reserve notes, including paper, preparing plates, and printing, b u t exclusive of cost of transmittal, for t h e calendar year 1918 Was as follows: Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco , , Total. , $123, 099. 92 275, 038. 66 203, 666. 82 127,389.85 105, 342. 85 124, 870. 87 252,011.74 95, 393. 55 73,166. 63 70, 529.45 55,523.47 163, 805.40 1. 669, 839. 21 N o . 12,—Amounts of Federal Reserve notes received from, and returned to other Federal Reserve Banks for redemption or credit during the calendar year 1918 and totals for 191*7. New York. Received, Boston New York Philadelphia... Cleveland Bichmond Atlanta Chicago St. Louis Minneapolis Kansas C i t y . . . Dallas San Francisco. Total, 1918 Total, 1917 Returned New Y o r k . . . Philadelphia. Cleveland Richmond Atlanta Returned 374,800 145.540 734, 494, 622,250 620,600 219,810 1,017, 403, 114, 380,400 61, 450,000 419, 167, 420,300 338,700 176,500 I 21,660, 305 ! 4,278,8 43, 178,000 517, 450 742,900 165, 750 226,000 274,050 001,300 691,050 989, 850 240,820 Received. Returned. Richmond. Received, j Returned, Returned, $1,734,700 26,000,590 $2,101,400 13, 639, 700 4,465,900 7,037,500 17,519,100 9,300,050 14,085,950 3,281,000 4,728,250 3,980,100 976,740 1,402,100 2,068,615 1,575,500 3,061,500 6,598,000 3,013,150 2,312,750 651,995 655,500 2,562,420 372,350 933,705 150,000 418,000 345,000 302,450 197,080 3,406,000 106,050 655,250 237,150 369,800 233,450 [$28,023,300 $16,415,400 340, Cleveland. Received. 182,800 15, 729, 2,173, $2,173,900 41,454, 750 13,564,050 7,153,500 31,085,350 $1,592,100 $745,500 9, 712,450 17,119,950 10,454,100 $358,850 4,640, 700 4,606,000 5,096,250 1,555,600 3,894,100 304,450 2,690,015 3,297,800 1,529,500 1,698,500 2, 770,600 479,000 412,250 759,250 139,250 154,250 1,560,350 1,977,S00 393,300 307,150 1,350,300 125,150 322,700 5,873,950 195,530 533,260 333,100 205,100 333,535 37,931,700 118,050,470 118,629,200 12,012,900 29,997,052 24,799,975 39,531,305 8,066,790 62,354,660 14,960,902 40,366,135 21,249,450 5,175, 740 2.534,070 31,113,635 6,450,175 Atlanta. Boston Received. Philadelphia. Received. Returned. $613,100 9,131,200 1,384,000 297,900 1,696,500 .$538,330 6,068,945 1,011,650 2,003,865 2,619,300 Chicago, Received. Returned $2,247,800 $1,209,500 14,071,550 10,923,000 3,237, 500 1,931,500 3,294,050 6,654,000 2, 765,850 1,553,000 2,493,075 2,013,000 St. Louis. Minneapolis. 2,083,430 Kansas City. Received. Returned. Received. Returned. Received. $381,600 2,967,850 644,000 356,500 363,500 2,309,010 $435,795 3,787,425 781,190 2,670,470 $337,900 2,290,750 460,000 308,450 412,500 435,300 $119,500 973,800 140,000 350,500 202,500 106,000 $577,200 4,308,250 99S, 725 3,847,640 26,603,050 821,500 463,440 803,240 1,228,355 Returned. $69,915 816,450 105,900 245,800 160,440 291,800 d No. 12.—Amounts of Federal Reserve notes received from and returned to other Federal Reserve Banlcsfor redemption or credit during the calendar year 1918 and totals for 1917—Continued. OS Chicago. Atlanta. Received. Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total, 1918 Total, 1917. Returned. Received. Minneapolis. St. Louis. Returned. Received. Returned, $1,998,500 $2,415,825 3,755,740 2,305,805 |$12,486,965 $5,146;000 100,000 427,160 4,261,800 7,347,000 248,100 986,540 1,285,100 8,578,500 1,734,750 1,790,635 1,722,150 1,816,000 147,725 270,870 1,842,315 4,285,100 $5,005,000 $12,959,065 21,107,515 20,438,925 49,708,155 51,456,600 6,210, 710 4,650,150 5,129,265 15,268,500 15,019,535 3,344,960 Dallas. Received. Received. Kansas City. Returned, Received. $7,269,000 $4,130,250 $11,060,995 290,500 8,107,970 1,041,205 1,235,000 1,099,765 6,336,660 456,300 1,046,500 3,797,400 125,500 3,166,470 291,100 843,625 993,600 1,630,250 1,831,940 280,500 987,800 1,500,050 223,725 37,557,760 7,979,770 San Francisco. Returned. Received. Returned. 14,296,105 5,537,985 9,115,300 33,604,360 1,351,000 7,783,185 Total, 1918. Returned > $1,358,850 1,185,200 578,700 0 1,077,400 430,150 O 6,320,605 1,118,755 Total, 1917. Received. Returned. Received. $11,941,700 25,374,715 14,515,907 2,528,325 2,070,680 4,654,345 15,079,650 8,022,765 1,327,000 1,110,855 3,536,050 1,933,625 $4,219,425 30,324,987 8,010,485 4,999,655 6,392,235 6,117,975 5,006,115 3,418,680 5,508,090 7,895,375 5,760,020 4,456,440 92,095,617 92,109,482 Returned. 3 O H w *i Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City.... Dallas San Francisco.. Total, 1918. Total, 1917. $166,500 1,957,650 319,500 111,950 142,250 1,771,260 1,804,000 3,585,875 125,500 777,950 $432,100 2,127,300 397,950 1,078,300 282,950 1,680,000 1,501,400 1,436,800 242,150 2,228,350 321,510 447,910 11,083,945 5,765,280 11,855,210 3,506,950 $426,300 5,823,200 579,000 214,000 140,500 314,970 4,339,100 787,775 1,625,250 440,550 891,900 $168,665 1,109,150 140,190 254,725 301,475 119,330 1,055,960 166,940 427,325 1,069,490 281,435 $38,274,000 112,964,740 64,559,000 20,926,210 24,063,090 20,947,940 53,422,845 38,591,215 9,435,930 5,525,100 14,782,020 7,631,520 $22,594,955 114,610,170 47,705,480 39,974,500 31,546,690 21,385,120 48,857,010 15,431,645 13,906,250 25,886,340 11,614,220 15,094,765 15,582,545 4,355,640 5,094,685 1,843,080 411,124,010 408,607,145 o W O Exhibit C—STATEMENTS OF CONDITION OF FEDERAL RESERVE BANKS, No, 13.—Combined resources and liabilities of all Federal Reserve Banks as at close of business on the last Friday of each month during the calendar year 1918. RESOURCES. [ I n t h o u s a n d s of dollars; i. e., 000 o m i t t e d . ] J a n . 25. Feb. 21. Mar.28-29. Apr. 26. M a y 31. J u n e 28. July; Aug. 30. Sept. 27. Oct. 25. N o v . 29. Gold coin a n d certificates i n v a u l t 472,012 447,508 489,948 486,820 456,177 419,907 418,012 384,009 370,220 Gold s e t t l e m e n t fund Gold w i t h foreign agencies 388 ; 210 375,273 399,568 439,477 425,237 491,425 598, 777 520,926 437,319 52,500 52,500 52,500 52,500 52,500 16,275 11,628 5,829 5,829 T o t a l gold h e l d b y b a n k s Gold w i t h F e d e r a l R e s e r v e agents Gold r e d e m p t i o n fund , 933,914 824,218 955,919 19,956 20,091 21,496 23,985 27,993 5,829 717,952 1,288,309 84,013 896,228 1,221,533 1,092,417 1,412,511 491,897 453,747 402,684 288,391 398,623 375,341 28,545 28,251 29,132 50,098 322,060 92,664 102 24 27 1,400,371 , 1,029,670 1,031,797 1,201,585 1,286,162 1,301,390 1,345,112 1,564,540 1,716,987 2,080,566 2,295,122 2,312,359 2,318,170 , 5 p e r cent r e d e m p t i o n f u n d a g a i n s t F e d e r a l R e s e r v e b a n k notes All o t h e r resources 978, 797 852,192 5,829 798,184 910,764 813,368 772,059 927,607 1,028,417 910,420 1,061,597 1,161, 731 1,184,998 1,216,541 987,870 45,714 76,613 61,950 35,363 41,433 33,544 2,146,219 Uncollected i t e m s a n d o t h e r d e d u c t i o n s from gross deposits T o t a l resources 942,016 877,023 337,365 374,758 1,782, 759 1,832,524 1,874,063 1,890,945 1,975, 709 2, 006,199 2, 029,329 2, 066,962 2,072,176 2,098,169 2,120,371 T o t a l reserves Bills d i s c o u n t e d : S e c u r e d b y G o v e r n m e n t w a r obligations All other T o t a l e a r n i n g assets 875,281 793,829 370,938 395,292 ft, 726,507 1,772,395 1,815,704 1,827,000 1,917,826 1,949,021 1,974,200 [2,013,794 2,020,813 2,045,132 2,065,213 2,090,274 53,037 55,158 51,363 55,129 53,168 60,129 57,178 55,945 56,252 58,359 57,883 63,945 T o t a l gold reserve Legal-tender n o t e s , silver, e t c Bills b o u g h t i n o p e n m a r k e t U n i t e d S t a t e s G o v e r n m e n t l o n g - t e r m securities U n i t e d S t a t e s G o v e r n m e n t s h o r t - t e r m securities All o t h e r e a r n i n g assets 912, 722 376,679 415,676 Dec. 27. 312,520 315,112 273,912 50,525 72,669 4,902 263,905 245,629 296,170 52,950 169,707 3,436 301,451 281, 777 304,065 58,190 252,579 3,523 642,429 259,314 302,844 41,446 37,407 2,722 356,208 310,865 366,075 388,845 537 537 731 537 3,724 359 201 562,993 434,509 334,364 434,666 256,373 216,848 54,842 40,227 92,082 218,839 40,090 16,922 736 23 106 408,137 528 438 3,176,454 3,445,984 3,566,839 3,686,300 673,231 628,920 205,274 531,967 232,603 30,350 25,772 67 736,328 302,567 303,673 28,869 282,677 13 520,087 558,392 568,655 649,448 856,923 735 701 12,441 1,164 2,447 12,858 3,692 4,621 5,988 11,787 16,879 21,309 22,005 , 872,133 4,165,403 4,365,555 |4,817,495 5,270,785 |5,194,9 759,608 5,251,990 N o . 13.—Combined resources and liabilities of all Federal Reserve Banks as at close of business on the last Friday of each month during the calendar year 1918—Continued. OO LIABILITIES. [In thousands of dollars; i. e., 000 omitted.] Jan. 25. Capital paid in Surplus Government deposits 72,439 1,134 Feb. 21. Mar.28-29. Apr. 73,305 1,134 May 31. June 28. July 26. Aug. 30. Sept. 27. Oct. 25. Nov. 29. Dec. ,27. 75,858 1,134 84,535 76,441 78,168 78,802 80,681 1,134 1,134 79,190 1,134 78,218 80,072 1,134 74,223 74,963 75,546 1,134 1,134 130,668 1,134 1,134 1,134 207,157 63,367 ,683,499 1,488,893 702,107 602,667 117,001 105,894 1,587,318 1,849,086 1,773,492 1,901, 442 1, 945,148 1,994, 745 2,049,906 2,181,262 |2,141,553 2,318,557 2,580,825 |2,404,611 1,234,934 1,314,581 1,452,838 1,526,232 1,600,968 1,722,216 1,870,835 2,092,708 2,349,326 2,507,912 |2,568,676 2,312,500 2,685,244 191,623 56,165 104,086 166,191 233,040 104,729 Due to members—reserve account 1,480, 743 1,459, 720 1,499,400 1,497,416 1,440,413 1,557,587 1,435,196 1,478,639 1,535,490 235,174 Collection items 199,278 485,059 286,302 194,955 216,897 278,698 401,186 437,885 Other deposits, including foreign Government credits 58,329 81, 890 121,482 104,385 37,697 81,059 109,443 111,840 120,300 135,691 Total gross deposits Federal Reserve notes in actual circulation 554,823 106,992 o W H O H3 W Federal Reserve bank notes in circulation—net liability Total liabilities - 7,999 7,978 7,895 8,324 10,390 11,084 20,687 35,819 5,943 8,369 11,467 5,583 12,629 24,647 31,305 35,857 86,003 54,492 117,122 55,309 I 3,169,375 3,176,454 3,445,984 3,566,839 3,686,300 3,872,133 4,165,403 4,365,555 4,817,495 |5,270, 785 5,194,988 5,251,990 k 8,000 3,782 All other liabilities MATURITIES O F BILLS ON H A N D . Within 15 days 390,212 338,543 359,987 673,064 661, 804 548,873 Over 15 but within 30 days 169, 795 104,830 127,065 194,238 110,168 136,574 Over 30 but within 60 days 203,437 174,460 267,267 217,535 187,415 256,050 Over 60 but within 90 days 124,822 178,480 123,498 106,431 159, 874 101,227 9,476 13,319 34,469 Oyer 90 days Total 13,308 901,574 9,391 805, 704 58,859 42,865 1,254,392 43,299 884, 111 1,047,516 1,323,052 1,198,861 1,305,634 192,414 221,020 225,900 141,558 240,900 302,709 279,786 219,928 470,666 141,331 171,434 232,891 223,655 165,185 40,325 28,141 12,212 12,229 23,151 887.293 1,204,587 11,153,730 1,086,023 1,660,798 2,001,821 1,944,787 2,190,536 2,006,611 200, 758 340,022 271,754 113,506 26,937 W O 119 EXHIBIT C—CONDITION OF FEDERAL, RESERVE BANKS. ilh \\<v- MOVEMENT OFEARNING ASSETS OF ALL FEDERAL RESERVE BANKS DURING THE CALENPAR YEAR IBIS. \\ (hrve /.• T^Sr£barL%^ver. Curve Z.-JotaUdilte Zkseountcd,. Curved.Sills 2)i$covuzte& and jdoughtr. ? Curve 4.:Jot^&xrmiufJ!s$ets, utcC. U.S. Oovcrnmj&tf:Securities. J Qxrve S: JZatio of JV&r*Cban> j€uver / to Jotal3UlsSHscountecLarulJ$ou#h/;. ?* fir \\6S\ Wl T3" iKCTtert |pZ7L i Kf> \YfOv 'I \\35[ i \\<30\ 4UI92SI6 IS£II4!SZS9SZBaS3IOI?»3!?#Eim£19X29(62S336I32JZMI! Z2SIS £Z296G&2'\ JAN. \FEB.\MCH. I APR\ MAr\JUN£\JULY \AUG. \SEPT.\ OCT. \NQK I DSC N o . 14.—Principal resources and liabilities of all Federal Reserve Banks at close of business on each Friday, Jan. 4 to Dec. 27, 1918. to O [In thousands of dollars; i. e., 000 omitted.] Jan. 4. 11. 18. 25. Feb. 1. 8. 15. 21. Mar. 1. 8. 15. 22. 28-29. Apr. 5. 12. 19. 26. May 3. 10. 17. 24. 31. June 7. 14. 21. 28. July 5. Gold coin Gold and settlement [certificates. fund. Gold with foreign 338,687 361,522 383,232 388,210 393,624 404,042 386,966 375,273 357,299 354,585 372,508 379,866 399,568 381,163 407,971 413,819 439,477 437,771 437,444 418,337 407,767 425,237 417,675 489,610 481,023 491,425 524,303 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 51,280 44,084 17,008 16,275 16,272 480,072 478,839 477,301 472,012 469,759 439,907 446,378 447,508 461, 615 464,144 477,521 470,529 489,948 483,780 488,762 488,829 486,820 482,832 480,580 479,529 478,460 456,177 463,622 432,557 438,773 419,907 421,927 Gold with Gold Total gold Federal Reserve redemption! reserves. fund. 797,191 784,326 796,727 793,829 781,667 838,259 852,375 877,023 885,346 896,702 869,628 878,805 852,192 873,077 857,492 854,822 824,218 862,296 885,027 915,536 930,181 955,919 958,255 951,145 957,238 987,870 962,075 19,270 19,643 19,710 19,956 19,472 19,960 20,323 20,091 20,569 20,267 21,086 21,114 21,496 23,404 23,546 23,179 23,985 24,541 27,584 28,502 29,115 27,993 28,431 29,507 30,331 33,544 34,533 1,687,720 1,696,830 1,729,470 1,726,507 1,717,022 1,754,668 1,758,542 1,772,395 1,777,329 1,788,198 1,793,243 1,802,814 1,815,704 1,813,924 1,830,271 1,833,149 1,827,000 1,859,940 1,883,135 1,894,404 1,898,023 1,917,826 1,919,263 1,946,903 1,924,373 1,949,021 1,959,110 Total cash Bills discounted. reserves, including Secured bylegal Governtenders, ment war All other. silver, etc. [obligations. 1,733,030 1,748,031 1,784,307 1,782,759 1,775,457 1,813,094 1,818,736 1,832,524 1,837,773 1,847,883 1,852,193 1,862,372 1,874,063 1,877,433 1,894,995 1,898,307 1,890,945 1,919,983 1,942,500 1,952,712 1,956,056 1,975,709 1,977,724 2,005,263 1,981,111 2,006,199 2,015,163 285,919 277,014 300,268 312,520 305,664 269,302 249,603 263,905 249,195 264,501 257,621 282,962 301,451 304,075 465,625 564,724 642,429 606,630 612,324 526,163 600,499 562,993 627,025 653,863 544,193 434,509 563,496 339,894 293,651 303,220 315,142 301,114 255,819 252,313 245,629 253,330 255,839 259,863 260,157 281,777 269,808 247,182 243,321 259,314 266,812 326,717 316,102 322,800 334,364 357,467 362,168 387,077 434,666 513,286 United United Total States Bills States Governbought in GovernUnited ment short-) ment longStates open term term securities. market. securities. securities. 271,338 258,710 257,804 273,912 289,805 280,705 287,263 296,170 299,213 317,952 323,248 328,880 304,065 326,503 318,857 308,277 302,844 297,029 286,036 279,886 278,221 256,373 248,542 242,923 232,472 216,848 211,947 51,167 49,506 45,911 50,525 53,734 52,294 52,343 52,950 77,705 72,154 68,383 61,039 58,190 60,403 54,237 46,675 41,446 41,183 40,116 41,041 42,067 54,842 64,484 40,683 40,877 40,227 42,749 92,058 137,227 122,310 72,669 78,898 173,588 105,981 169,707 157,482 182,822 193,980 226,036 252,579 260,400 142,143 46,295 37,407 36,378 106,762 73,043 32,476 92,082 32,601 33,179 35,883 218,839 17,350 143,225 186,733 168,221 123,194 132,632 225,882 158,324 222,657 235,187 254,976 262,363 287,075 310,769 320,803 196,380 92,970 78,853 77,561 146,878 114,084 74,543 146,924 97,085 73,862 76,760 259,066 60,099 12.. 422,738 524,225 15,529 963,147 34,413 1,960,052 2,015,984 606,599 553,283 218,464 40,273 31,923 72,196 19.. 428,853 556,154 15,496 940,290 34,655 1,975,448 2,031,095 601,403 601,943 205,932 40,259 16,358 56,617 26.. 418,012 598,777 11,628 910,420 35,363 1,974,200 2,029,329 673,231 628,920 205,274 40,090 16,922 57,012 Aug. 2.. 408,470 623,119 9,696 902,793 36,818 1,980,896 2,034,918 685,921 584,998 209,185 36,237 17,573 53,810 9.. 395,410 606,354 9,696 940,692 38,149 1,990,301 2,044,523 761,576 570,897 208,557 34,931 17,404 52,335 16.. 385,017 600,083 5,829 961,498 40,116 1,992,543 2,045,523 752,115 533,253 212,204 31,497 32,546 64,043 23.. 385,072 553,060 5,829 1,018,767 40,323 2,003,051 2,055,266 853,508 540,247 236,566 30,624 23,479 54,103 30.. 384,009 520,926 5,829 1,061,597 41,433 2,013,794 2,066,962 896,228 531,967 232,603 30,350 25,772 56,122 M Sept. 6.. 383,228 496,531 5,830 1,087,760 43,634 2,016,983 2,070,494 1,007,366 534,608 233,766 29,768 28,030 57,798 63,340 a 13.. 386,214 465,298 5,829 1,123,132 44,086 2,024,559 2,077,732 1,071,304 541,943 239,750 29,563 33,777 20.. 367,660 459,997 5,829 1,145,950 44,122 2,023,558 2,076,039 1,146,357 513,789 250,032 29,022 41,878 70,900 27.. 370,220 437,319 5,829 1,161,731 45,714 2,020,813 2,072,176 1,221,533 491,897 288,391 28,545 50,098 78,643 4.. 373,255 419,665 5,829 1,181,485 45,200 2,025,434 2,077,371 1,251,787 454,419 310,817 28,289 56,514 84,803 10.. 372,922 448,720 5,829 1,157,000 46,765 2,031,236 2,083,358 1,304,383 450,086 338,620 28,214 66,193 94,407 18.. 382,160 416,413 5,829 1,173,521 57,390 2,035,313 2,087,685 1,262,757 425,799 370,136 28,205 67,738 95,943 25.. 376,679 415,676 5,829 1,184,998 61,950 2,045,132 2,098,169 1,092,417 453,747 398,623 28,251 322,060 350,311 Nov. 1.. 8.. 15.. 383,833 449,248 5,829 1,149,859 63,460 2,052,229 2,105,685 1,252,904 493,049 377,072 29,472 88,750 118,222 3S6,437 43^,452 5,829 1,145,640 73,233 2,046,591 2,100,839 l,316,9o7 480,271 374,522 29,479 91,956 121,435 375,527 433,885 5,829 1,166,579 74,957 2,056,777 2,109,816 1,358,416 439,392 377,877 29,478 93,449 122,927 22.. 371,498 435,892 5,829 1,168,917 78,129 2,060,265 2,116,257 1,281,245 428 190 36S,784 29,134 148,180 177,314 29.. 370,938 395,292 5,829 1,216,541 76,613 2,065,213 2,120,371 1,412,511 402,684 375,341 29,132 92,664 121,796 Oct. Dec. X 3 3 a o o o O 6.. 353,208 422,491 5,829 1,207,377 78,496 2,067,401 2,121,367 1,467,322 396,462 371,406 29,196 105,606 134,802 13.. 336,516 487,568 5,829 1,167,771 80,821 2,078,505 2,134,263 1,483,849 365,614 366,594 29,189 111,477 140. 666 20.. 335,141 461,369 5,829 1,194,228 82,421 2,078,988 2,133,624 1,299,524 306,778 340,765 28,850 325,073 353,923 W 27.. 337,365 374,758 5,829 1,288,309 84,013 2,090,274 2,146,219 1,400,371 302,567 303,673 28,869 282,677 311,546 ui W to N o . 14. -Principal resources and liabilities of all Federal Reserve Banks at close of business on each Friday, Jan. 4 to Dec. 27, 1918—Continued. to [In t h o u s a n d s of dollars; i. e., 000 o m i t t e d . ] All o t h e r earning assets. Jan. Feb. Mar. Total earning assets. Uncollected items T o t a l rea n d o t h e r sources and] d e d u c t i o n s liabilities. from gross deposits. Capital paid in. Surplus. Government deposits. Due to membersreserve account. Collection items. Other deposits, including foreign government credits. 4 5,167 1,045,543 347,251 3,126,898 70,825 1,134 131,006 1,449,230 192,649 20,594 11 5,063 1,021,171 334,822 3,105,080 71,603 1,134 57,856 1,498, 482 203,073 20,315 Total gross deposits. Federal Federal Reserve Reserve b a n k notes notes i n i n circulaactual t i o net circulation. l i a nb — ility. 1, 793,479 8,000 18 4,224 1,033,737 417,526 3,236,486 71,938 1,134 239,829 1,421, 576 221, 728 30,779 1,251,205 1, 779, 726 1,242,199 1,913, 912 1,238, 797 25 4,902 1,029,670 356,2C8 3,169,375 72,439 1,134 135,691 1,480, 743 194,955 37,697 1,849,086 1,234,934 8,000 o H 1 3,805 1,033,020 366,456 3,176,023 72,620 1,134 132,790 1,478,644 191,283 51,769 1,854, 486 1,236,101 8,000 O 8 4,423 1,036,131 284,964 3,135,277 72,829 1,134 59,488 1,501,301 167,154 59,874 1,787, 817 1,261,219 8,000 7,999 15 4,486 951,989 374,327 3,146,171 73,229 1,134 87,643 1,409, 714 228,289 52,315 21 3,436 1,031,797 310,865 3,176,454 73,305 1,134 56,165 1,459, 720 199,278 58,329 1 3,680 1,040,605 381,067 3,260,778 73,401 1,134 150,781 1,388,020 218,031 64,122 1.777.961 1,281,045 1, 773, 492 1,314,581 1,820, 954 1,351,091 8,000 8,000 7,999 7,999 8 4,064 1,097,332 343,396 3,289,909 73,624 1,134 56,208 1,465,504 216,986 77,137 1,815,835 1,383,990 8,000 15 4,040 1,107,135 368, 756 3,330,073 73,886 1,134 72,023 1,448,047 232,157 81,048 1,833,275 1,406,228 8,000 21 4,240 1,163,314 376,622 3,403,395 74,011 1,134 91,505 1,480,025 229,115 81,751 1,832,396 1, 429,509 7,978 28-29 7,978 Apr. May June 3 3,523 1,231,585 366,075 3,445,984 74,223 1,134 104,086 1,499,400 216,897 81,059 1,901,442 1,452,838 5 3,222 1,224,411 356,954 3,459,659 74,494 1,134 104,818 1,473,294 226,139 82,067 1,886,318 1,479,920 7,860 12 3,771 1,231,815 384,824 3,512,495 74,748 1,134 100,523 1,494,537 239,270 84,321 1,918,651 1,499,377 8,000 19 3,293 1,212,585 387,655 3,499,217 74,829 1,134 75,499 1,469,860 256,220 88,322 1,889,901 1,514,287 7,895 26 2,722 1,286,162 388,845 3,566,839 74,963 1,134 130,668 1,497,416 235,174 81,890 1,945,148 1,526,232 7,895 3. 2,537 1,250,569 376,605 3,548,023 75,049 1,134 73,888 1,474,518 257,593 91,563 1,897,562 1,556, 660 7,980 10 1,844 1,373,799 455,726 3, 772,495 75,118 1,134 138,529 1.548.137 309,773 110,611 2,107,050 1,569,618 7,878 17 1,492 1,237,727 382,509 3,573,555 75,315 1,134 48,753 1.461.138 282,475 114,596 1.906.962 1,569,445 7,878 24 1,151 1,277,214 351,407 3,585,303 75,465 1,134 122,350 1,436,284 242,488 107,903 1,909,025 1,578,621 7,764 8,324 31 736 1,301,390 408,137 3,686,300 75,546 1,134 166,191 1,440,413 278,698 109,443 1,994, 745 1,600,968 7. 694 1,330,813 402,529 3, 711,703 75,662 1,134 179,876 1,449,486 239,971 109,560 1,978,893 1,639,579 9,580 14. 594 1,333,410 510,303 3,849,711 75,711 1,134 155,532 1,555,434 264, 887 123,221 2,099,074 1,651,500 10,001 21 100 1,240,602 584,154 3,806,692 75,770 1,134 159,457 1,464,986 287,769 117,345 2,029,557 1,677,951 9,945 1,345,112 520,087 3,872,133 75,858 1,134 84,535 1,557,587 286,302 121,482 2,049,906 1,722,216 10,390 28. Hi w H *A S CO o July 5 12 19 26 Aug. 2 9 16 23 Sept 30 6 13 20 Oct. 27 4 10 18 25. Nov. 1. 15. 22. 29. Bee. 6. 13. 20. 27. 1 26 72 98 103 101 102 82 62 67 75 81 84 102 202 188 197 24 35 28 28 27 27 27 27 16 13 348, 854 450,614 465, 993 ,564,540 534,015 593,467 561, 697 684,486 716,987 833,613 916,418 981,162 080,566 102,028 187,684 154,832 295,122 241,276 293,223 298,640 255,560 312,359 370,019 356,750 301,006 318,170 4,044,162 669,257 4,117, 722 640,410 658, 588 4,166,122 4,165,403 558,392 4, 111, 538 531,558 584, 758 4,234,893 4,242,384 623,495 4,353,987 601,983 4,365,555 568,655 4,559,873 642,377 4, 705, 793 697,225 4,726, 766 654,843 4,817,495 649,448 4,899,386 704,046 5,011,134 723,430 5,063,216 803,517 5,270,785 856,923 5,052,114 684,315 5,104,244 687,468 717, 785 5,148,418 5,219,527 819,010 5,194,988 736,328 5,168, 709 650,039 5,234,934 719,591 5,288,134 826,831 5,251,990 759,608 76,163 76,324 76,383 76,441 76,518 76,876 76,960 77,750 78,168 78,359 78,553 78,689 78,802 78,903 78,956 79,057 79,190 79,360 79,824 79,903 80,025 80,072 80,304 80,492 80,585 80,681 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134 128,398 169,393 144,828 233,040 161,236 179,978 95,555 173,027 104, 729 197,325 206, 733 169,141 191,623 197,359 230,889 179,868 78,218 249,397 160,256 246,401 113,174 207,157 185,355 161,614 38,693 63,367 1,369,697 1,439,346 1,488,047 1,435,196 1,423,532 1,420, 705 1,464, Oil 1,459,480 1,478,639 1,465,102 1, 469, 603 1,524,528 1,535,490 1,496,815 1,508,334 1,506,727 1,683,499 1,442,493 1,545,996 1,449,949 1,604,033 1,488,893 1,547,838 1,567,927 1,642,444 1,587,318 527, 580 477,526 480,341 401,186 390,911 433,347 461,202 450,947 437,885 461,640 527, 752 490,265 485,059 512,227 514,110 585,090 702,107 543,975 527, 796 573,727 620,608 602,667 514,512 556, 764 588,755 554,823 117, 509 107, 809 112, 052 111, 840 114,718 127,050 115,234 112,597 120,300 119,960 115,302 100,173 104,385 103,907 108,256 112,634 117,001 111,827 114,941 113,385 113,967 105,894 106,685 106,012 106,689 106,992 2,143,184 2,194, 074 2,225, 268 2,181, 262 2,090,397 2,161, 080 2,136,002 2,196,051 2,141, 553 2,244,027 2,319,390 2,284,107 2,316,557 2,310,308 2,361,589 2,384,319 2,580,825 2,347,692 2,348, 989 2,383,462 2,451,782 2,404,611 2,354,390 2,392,317 2,376,581 2,312,500 1, 791,569 1,813,425 1,829,045 1,870,835 1,906,465 1,955,276 1,985,419 2,032,837 2,092,708 2,180,679 2,245,429 2,295,031 2,349,326 2,431,004 2,478,378 2,502,488 2,507,912 2,515,504 2,558,196 2,562,517 2,555,215 2,568,676 2,584,523 2,604,580 2,663, 701 2,685,244 10,635 10,800 11,000 11,084 11,479 13, 716 15,167 16,864 20,687 23,964 27,672 33,208 35,819 40,305 52,031 55,666 58,859 63,338 68,864 72,930 80,504 86,003 92, 799 102,202 111, 909 117,122 X W w Q o o O o O w > teJ w w <J w > W to Co No. 15.-—Required reserves against net deposit and Federal Reserve note liabilities, and amounts of gold held in excess of required reserves. [In thousands of dollars; i. e., 000 omitted.] I vet d e p o s i t s . Amount. Jan. 4 11 18 25 Feb. 1 8 15 21 Mar. 1 8 15 22 1918 1 28-29 Apr. 5 12 19 26 May 3 10 17 24 31..... ................. June 7 Required r e s e r v e of 35 p e r c e n t . Federal Reserve notes in circulation. Amount. Required r e s e r v e of 40 p e r c e n t . Total net deposit Total and Fedamount e r a l R e - of r e q u i r e d serve note reserves. liabilities. Gold i n T o t a l c a s h excess of required reserves reserves held. (free g o l d ) . R a t i o of t o t a l cash reserves to n e t deposit a n d Fed[ eral Reserve note 1 liabilities combined. Per 1,443,228 1,444,904 506,180 1,251,205 500,482 2,697,433 1,006,662 1,733,030 1,784,307 505,716 1,242,199 496,880 2,687,103 1,496,386 1,492,878 523,735 1,238,797 1,234,934 495,519 493,974 2,735,183 1,002,596 1,019,254 1,782,759 520,813 525,999 1,236,101 494,440 2,727,812 2,724,137 1,016,481 1,488,036 1,015,253 1,261,219 504, 488 2,764,072 1,030,487 491,272 1,281,045 512,418 1,003,690 1,462,627 511,919 1,314,581 525,832 2,684,679 2,777,208 1,439,887 503,960 515,354 1,502,853 1,403,634 1,472,439 522,507 1,748,031 726,368 745,435 cent. 64.2 65.1 765,053 766,278 65.2 1,775,457 1,813,094 760,204 65.2 732,607 65.6 1,818; 736 1,832,524 815,046 67.7 794,773 66.0 65.8 65.4 1,351,091 540,436 2,790,978 1,037,751 1,044,396 1,837,773 793,377 1,383,990 1,406,228 553,596 562,491 2,856,429 1,068,950 1,847,883 2,870,747 1,075,073 1,098,825 1,852,193 1,862,372 778,933 777,120 763,547 64.5 63.4 1,118,513 1,874,063 1,877,433 755,550 750,188 62.7 62.4 64.7 1,464,519 1,505,774 512,582 2,935,283 537,378 1,429,509 1,452,838 571,804 1,535,367 1,529,364 581,135 535,277 1,479,920 591,968 2,988,205 3,009,284 536,839 525,786 1,499,377 599,751 3,033,204 1,136,590 1,894,995 758,405 62.5 1,514,287 605,715 3, 016,533 1,131,501 1,898,307 766,806 62.9 1,155,199 1,154,999 1,890,945 735,746 1,919,983 764,984 : 61.3 62.4 736,690 60.3 791,375 63.1 1,533,827 1,502,246 527,021 1,127,245 1,556,303 544,706 1,526,232 610,493 3,082,535 1,520,957 1,651,324 532,335 622,664 3,077,617 577,963 1,556,660 1,569,618 1,205,810 533,559 3,093,898 1,161,337 1,942,500 1,952,712 1,557,618 545,166 1,569,445 1,578,621 627,847 627,778 3,220,942 1,524,453 631,448 3,136,239 1,176,614 1,956,056 779,442 62.4 1,586,608 1,576,364 555,313 1,600,968 1,975,709 1,977,724 780,009 62.0 1,639,579 3,187,576 3,215,943 1,195,700 551,727 640,387 655,832 770,165 1 61.5 1,207,559 14. 21. 28. July 5. 12. 19. 26. Aug. 2 9. 16. 23. 30. Sept. 6 13. 20. 27. Oct. 4. 10. 18. 25 Nov. 1. 8, 15. 22 29. Dec. 6. 13. 20. 27. !,771 445,403 529,819 473,927 553,664 566,680 622,870 558,839 576,322 512,507 594,068' 572,898 601,650 622,165 629,264 667,109 606,262 638,159 580,802 723,902 663,377 661,521 665,677 632,772 668,283 704,351 072,726 549,750 552,892 556,070 505,891 535,437 515,874 543,782 548,338 568,005 545,594 551,713 529,377 557,924 550,514 560,578 567,758 570,242 583,488 562,192 573,356 553,281 603,366 582,182 581,532 582,987 571,470 583,899 596,523 585,454 542,413 543,502 1,651,500 1,677,951 1,722,216 1,791,569 1,813,425 1,829,045 1,870,835 1,906,465 1,955,276 1,985,419 2,032,837 2,092,708 2,180,679 2,245,429 2,295,031 2,349,326 2,431,004 2,478,378 2,502,488 2,507,912 2,515,504 2,558,196 2,562,517 2,555,215 2,568,676 2,584,523 2,604,580 2,663,701 2,685,244 660,600 671,180 688,886 716,628 725,370 731,618 748,334 762,586 782,110 794.168 813,135 837,083 872,272 898,172 918,012 939,730 972,402 991,351 1,000,995 1,003,165 1,006,202 1,023,279 1,025,007 1,022,086 1,027,470 1,033,809 1,041,832 1,065,480 1,074,098 3,240,271 3,123,354 3,252, 035 3,265, 496 3,367,089 3,395,725 3,493,705 3,465,304 3,531,598 3,497,926 3,626,905 3,665,606 3, 782,329 3,867,594 3,924,295 4,016,435 4,037,266 4,116,537 4,083,290 4,231,814 4,178,881 4,219,717 4,228,194 4,187,987 4,236,959 4,288,874 4,277,308 4,213,451 4,238,136 1,216,670 1,177,071 1,224,323 1,232,502 1,269,152 1,279,956 1,316,339 1,308,180 1,333,823 1,323,545 1,371,059 1,387,597 1,432,850 1,465,930 1,488,254 1,523,218 1,534,594 1,564,707 1,554,276 1,606,531 1,588,384 1,604,811 1,607,994 1,593,556 1,611,369 1,630,332 1,627,286 1,607,893 1,617,600 2,005,263 1,981, 111 2,006,199 2,015,163 2,015,984 2,031,095 2,029,329 2,034,918 2,044,523 2,045,523 2,055,266 2,066,962 2,070,494 2, 077,732 2,076,039 2,072,176 2,077,371 2,083,358 2,087,685 2,098,169 2,105,685 2,100,839 2,109,816 2,116,257 2,120,371 2,121,367 2,134,263 2,133,624 2,146,219 788,593 804,040 781,876 782,661 746,832 751,139 712,990 726,738 710.700 721,978 684,207 679,365 637,644 611,802 587,785 548,958 542,777 518,651 533,409 491,638 517,301 496,028 501,822 522.701 509,002 491,035 506,977 525,731 528,619 61.9 63.4 61.7 61.7 59.9 59.8 58.1 X H H-1 58.7 w 67.9 H O 58.5 56.7 56.4 54.7 53.7 52.9 51.6 51.5 11 Q O a O O 50.6 51.1 49.6 50.4 49.8 49.9 50.5 50.0 49.5 49.9 50.6 50.6 fS CO i w > W Ul to 126 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. DEPOSIT AND NOTE LIABILITIES, ALSO CASH RESERVES, OFALL FEDERAL RESERVE BANKS, DURIN6 THE CALENPAR YEAR 1318. Curve/: Jfet&eftosits. Curve 2. Total CaslvJteserves. Chrv&^^taUo of Gzsfufi&erves 60 JJggregcU^ Mt2>ert0steand^.Mte£MXXce8. M \eo\ Vsel 411182SIJIf21J3tS22SSZBBS3IO17&317lta2gSIZ826i3l6a3O6B202?4ltJS2SI*> &Z&6B2J27\ JAN. IFEBAMCH. \APR. WAY\JUNE\JULY \AUO. \SEFT. I OCT. 1 /Y<7K 1 PEC. \ 1 EXHIBIT C CONDITION OF FEDERAL RESERVE BANKS. TOTAL CASH RESERVES AND EXCESS RESERVES Or ALL FEDERAL RESERVE BANKS DURING THE CALENDAR YEAR 1918. Gx,rvo /: CasJhJteserres -required, agaXnsb J¥e&&eft^£&atod£j^,jfote£zabi^ com&&t£d>. dcrre Z:JobcuL Oxsh^cserpesofChe jTJi. 3cmfCs. 411 e2£t SiSUl <f lS222SS£192S3rOP&3t7HZI&SI2B26Z3 J6Z830 6B&B* ff J$K[ <f K&296132Q& JAM. 1 FEB. 1 MCH. 1 APR.\ MAYTTUJiEXJULr \ AUa\SEPT.\ OCT. I NOV. \DEC. 127 N o . 16.—Discounted paper held by each Federal Reserve bank on Dec. 27, 1918, distributed by maturities. fcO 00 Maturities. Federal Reserve bank. Within 15 days. From 16 to 30 days. From 31 to CO days. From 61 to 90 days. Total. Per cent. Over 90 days. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas San Francisco $41,255,264.00 486,415,574.61 159,235,029.85 87,618,601.59 59,527,301.81 55,683,990.66 83,062,323.75 52,215,249.85 17,774,201.85 30,372,556.77 26,437,281.8a 50,357,863.00 $39,111,576.52 115,634,349.59 16,781,121.71 30,192,822.48 11,649,129.27 10,881,437.16 6,979,264.80 4,624,999.48 12,254,950.24 4,347,744.99 4,896,335.49 8,753,812.00 $38,800,112.69 41,937,316.41 2,691,127.46 8,719,990.21 9,039,593.26 7,038,707.77 15,580,719.33 5,911,166.23 6,380,263.17 7,874,734.30 11,082,808.40 11,820,313.00 $9,959,651.83 8,386,712.57 1,948,246.28 1,579,437.31 2,628,008.98 3,375,714.63 46,908,066.61 2,804,453.23 463,594.05 4,657,505.54 3,717,719.01 6,632,955.00 $1,015,882.27 876.00 8,766.57 33,848.52 29,829.33 184,548.17 8,262,275.21 22,443.87 825,285.92 9,145,437.62 4,800,289.89 2,610,064.00 $130,142,487.31 652,374,829.18 180,664,291.87 128,144,700.11 82,873,862.65 77,164,398.39 160,792,649.70 65,578,312.66 37,698,295.23 56,397,979.22 50,934,434.67 80,175,007.00 7.7 38.3 10.6 7.5 4.9 4.5 9.4 3.9 2.2 3.3 3.0 4.7 Total... 1,149,955,239.62 266,107,543.73 166,876,852.23 93,062,065.04 26,939,547.37 1,702,941,247.99 100.0 > % g o o H w a g W O es No. 17.—Acceptances purchased and held by each Federal Reserve bank on Dec. 'Zl\ 1918, distributed by maturities. Maturii ies Total. Federal Reserve bank. 'Within 15 d a y s . F r o m 16 t o 30 days. $6,,090., 932.96 $2, 892,847.73 13, 725,176.79 Dallas San Francisco.. ,583,137.61 ,188,459.64 ,287,336.00 381,705.95 ,782,097.66 003,767.09 ,455,901.23 ,499,861.00 ,998,445.30 765,000.00 ,398,937.00 Total...., 104,435,581.44 73,913,956.47 Boston New Y o r k . . . Philadelphia. Cleveland Richmond... Atlanta Chicago S t . Louis Minneapolis Kansas City.... 293,516.92 346,498.32 610,510.28 778,734.65 981,650.53 449,106.00 771,226.83 907,252.42 645,000.00 512,436.00 From. 31 to 60 days. F r o m 61 d a y s t o 3 months. $5, 596,322. 27, 265,848. 1, 599,100. 11, 325,225. 2, 108,650. 046,709. 26 293,567. 2, 179,294. 7, 740,911. 4 500,405. 818,000. 11, 405,799. $1,363,400. 2,748,884. $15,943,503.37 69,323,046.71 167,194. 1,316,752. 2,002,500. 2,631,258. 3,789,095. 3,248,271.67 39,275,812.28 740,000. 1,065,845. 7,824,301.57 20,077,844.09 14,402,773.71 \ 104,879,833.55 996,670. 450,000. 3,172,252. 199,237,644.05 5,103,366.23 12,238,800.28 75,068,081.58 2,678,000.00 38,489,424.00 303,673,225.49 No. 18.—Acceptances purchased and held by each Federal Reserve Bank on Dec. 31, 1918, distributed by classes of accepting institutions. [In thousands of dollars, i. e., 000 omitted.J Member banks. Philadelphia 12,015 48,081 ' 2,824 Cleveland 29,313 Boston New York Non1 Nonmember member trust State companies. banks. 1 437 62 2,246 Private banks. Foreign bank branches and agencies. Total bankc,rs, acceptances. 166 2,274 6,998 30 1,084 12,616 7,125 75,257 69 1,674 6 2,991 863 35,180 350 1 Trade acceptances. Total. D o m e s t i c . 1 Foreign. 14,805 279 320 2,216 2,000 20 49 Total. 279 2,320 20 2,265 15,084 77,577 3,011 37,445 5,465 5,465 Atlanta 12,515 12,515 12,515 Chicago 60,447 7,188 25 Minneapolis 17,281 223 Kansas City Dallas 12,329 2,448 62^881 7,293 17,994 14,204 San Francisco 28,351 Richmond St. Louis , 1,359 1,075 62,881 80 50 7,293 17,994 1,163 440 292 420 14,204 753 1,661 3,475 34,240 2,448 2,448 2,040 2,040 36,280 Totals: Dec. 31,1918.. Nov. 30,1918.. 238,257 310,069 2,745 10,442 285,273 2,536 4,388 6,924 292,197 10,703 20,385 27,871 13,444 2,028 19,818 370,489 4,016 5,019 5,057 9,035 379,524 Oct. 31,1918... 314,719 2,949 11,669 30,242 ! 14,006 373,585 3,947 9,004 382,589 Sept. 30,1918.. 233,926 280,814 225,964 2,745 2,201 8,506 289,320 6,605 8,806 234, 770 July 31,1918.. 7,302 8,975 190,102 1,994 197,883 173,698 459 21,478 209,942 7,418 May 31,1918.. 207,917 1,330 5,168 26,217 12,315 8,398 5,787 7,418 7,781 June 30,1918.. 1,129 1,992 19,167 18,082 13,999 8,450 5,761 188,366 154,614 2,479 8,264 27,551 ! Aug. 31,1918.. 2,859 1,717 249,030 8,276 8,276 Apr. 30,1918.. 654 2,907 1,884 25,921 10,304 288,176 128 9,151 9,279 Mar. 31,1918.. 248,390 275,144 217,360 257,306 29?, 455 8,562 318,729 23 7,992 8,015 326,744 Feb. 28,1918.. 252,747 31,779 28,419 7,097 5,456 Jan. 31,1918... 240,259 227,717 3,522 22,099 6,947 293,767 278,374 6,363 299,223 284,737 3,179 20,'l37 18,224 7,657 266,853 6,383 273,236 121,154 4,585 ' 125,739 Dec. 31,1917.. Dec. 30, 1916.. 66,803 | 1,360 1,648 3,856 5,547 8,163 34,625 l 1,502 N o . 19.— United Slates securities held by each Federal Reserve Bank on Dec. SI, 1918, distributed by classes and maturities. U . S. certificates of indebtedness.1 Federal Reserve B a n k , Boston 3 p e r cent 2 p e r c e n t 2 p e r cent 4 per cent 3 p e r cent conconsols of P a n a m a s Joan of loan ol version 1930. 1925. bonds of 1901. 1940 47. $:r,o $529,000 1,255,400 549,200 New York Philadelphia.. Cleveland $100 414,800 Richmond Atlanta.. Chicago , St. Louis... Minneapolis... Kansas City.... 915,100 240, 000 1,802,500 237,000 21,000 307,300 $1,708,000 100 260 20,000 500 281,500 S a n Francisco.. 7,155,000 2,450,900 2,428,750 Total.... ,5,053,700 927,100 ;2,593,000 Dallas.. $400 82*,000 A m o u n t of L T nited S t a t e s b o n d s w i t h c i r c u l a t i o n privilege: 2 per c e n t consols a n d P a n a m a s 4 per c e n t l o a n of 1925 Total. 10,300 427,400 3^ p e r cent Liberty loan of 1947. $0, 19,950 j 600 | 5,050 | 1,233,000 4,970 8, (XX) 22,100 ,100 ,150 I Circulation privilege for F e d e r a l reserve b a n k notes only. 3 p e r cent 1-year 2 per cent Treasury t o secure Other n o t e s . 1 circulation T r e a s u r y of F e d e r a l certifiReserve cates. banknotes. 120, 530 530,000 8,808,450 821,000 3,989,800 725,000 2,400,950 1,000,000 Total U . S . Total certificates a n d U . S. T r e a s u r y securities. notes. ! $7,410, !$93,374,500:i28,S50 : 353, (XX) 10,033 1,005,500 11,725 4,784 102,000 200,500 58,000 500,000 970,000 0,000 15,012 0, 508 5,140 4,378 4,400 5,724 230 250 900 050 200 750 500 400 030 450 800 950 503,000 1,130,500 1,117,850 ,27,859,010 19,301,000 104,707,000 90,095,500 ,210,703,500 238,502,510 $15,980,800 2,593,000 18,5 A m o u n t of U n i t e d S t a t e s securities w i t h o u t c i r c u l a t i o n privilege: 3 p e r c e n t l o a n of 1901 3 per c e n t c o n v e r s i o n 1 >onds... 3* p e r c e n t L i b e r t y loan 4 p e r c e n t L i b e r t y loan '\{ p e r c e n t L i b e r t y loan 3 per c e n t 1-year n o t e s * , 2 per c e n t certificates of i n d e b t e d n e s s 2 o t h e r T r e a s u r y certificates of h i d e b t e d n e s s Total 1 Total U.S. bonds. $568,880 $1,105,230 $000,000 521,000 1,395,750 825,000 20, f,00 1,384,900 403,550 1,084,550 1,202,000 1,500 1,234, 200 81)9,000 553, 750 607,000 81,400 S50 4,509,500 1,445,000 1,153,400 $140,3,50 11,850 200,200 42,850 10,750 1,153,300 114,800 838,500 900 10,520,300 4 p e r cent: 4 | p e r cent Liberty j loan of I L i b e r t y 1942 1947.1 l o a n . $900 0,52o, 300 503,000 1,130,500 1,117.850 9,301,000 104,707,000 90,095,500 219,988,050 - I n c l u d e s u n p a i d portion of b o n d s sold to i n d i v i d u a l subscribers, o t h e r t h a u e m p l o y e e s , on partial p a y m e n t p l a n . N o . 20.— United States securities held by each Federal Reserve Bank on Dec. 31, 1917, distributed by classes arid maturities. Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond A tlanta Chicago S t . Louis 2 per cent consols of 1930. 2 per cent P a n a m a s of 1936-1938. 4 p e r cent loan of 1925. 3 per cent 3 p e r cent loan of conversion b o n d s of 1961. 1946-47. 3J- per cent "Liberty loan of 1947. 4 p e r cent Liberty loan of 1942-1947. $529,000 $80,000 411,150 249,850 2,027,000 42,900 290,900 i $118,992 3,470,150 6,302,800 320,750 41,450 1,434,200 S750 50 6,400 915,100 640,600 1,882,500 $100 467,200 237,000 21,000 367,300 100 323,050 10,260 K a n s a s City 7,155,850 22,240 Dallas 2,450,900 281,500 S a n Francisco 2,428,750 15, 784,050 ,$50,000 1,255,500 2,653,660 549,200 414,800 $2,378,200 10,300 2,581,000 1,199,180 $400 206,250 500 427,400 ! 1,153,300 825,000 114,800 " 27,950 838,500 7,500 1,233,600 477,100 53,000 28,250 1,412,600 7,563,840 Amount of United States bonds with circulation privilege: 2 per cent consols and Panamas 3 per cent loan of 1918 4 per cent loan of 1925 Total 1,768,000 1,080,000 Minneapolis Total 3 per cent loan of 1918. 5,177,450 900 6,526,400 $17,196.650 7,563.840 5,177,450 29,937,940 3,612,650 11,769,292 T o t a l U . S. bonds. $728,742 3 p e r cent 1-year notes. U . S. certificates of indebtedness. $2,194,000 7,101,950 4,493,000 $15,000,000 2,548,000 8,268,010 3,221,000 1,236,450 1,969,000 5,186,850 2,397,000 1,491,000 7,006,600 3,378,000 . 2,233,400 1,444,000 1,887,990 1,340,000 8,849,090 1,784,000 4,496,100 1,430,000 2,455,000 1,500,000 51,847,182 26, 792,000 28,050,000 500 43,050,500 Total U . S . certificates T o t a l U . S. a n d Treas-1 securities, u r y notes. $2,194,000 19,493,000 2,548,000 31,271,000 1,969,000 1,491,000 3,378,000 1,444,000 1,340,500 1,784,000 1,430,000 1,500,009 i $2,922,742 69,842,500 121,689,682 Amount of United States securities without circulation privilege: 3 per cent loan of 1961 3 per cent conversion bonds 3 per cent 1-ycar notes 3Vper cent Liberty loan 4 per cent Liberty loan U. S. certificates of indebtedness Total 'Includes unpaid portion of bonds sold to individual subscribers, other than employees, on partial-payment plan. 24 679,8.50 9 649,950 39,539,010 3 888 000 10 384,600 3 677 400 3 22S 490 10 633 090 5 926 100 3,955,000 $! 00 6.526,400 26,792,000 3,612,6S0 11,769,292 43,050,500 91,751,742 N o . Zl*+~ Statement showing condition of each Federal Reserve Bank on Dec. 31,1918, RESOURCES. (Detailed figures shown for each bank in first column represent items as reported to the board; figures in second column, printed in italics, indicate results of consolidation according to methods used in the Compilation of the board's weekly statement.] Boston. New Y o r k . ' Philadelphia. W H i Gold b u l l i o n a n d coin Gold coin and certificates Gold settlement fund, Federal Reserve Board 37,293,000.00 66,790,455.76 66,790,000.00 408,021.21 408,000.00 2,010,961.70 2,011.000.00 fund 38.871,000.00 59,733,000.00 274,392,165.00 27 fh 392,000.00 85,583,245.00 85,584,000.00 7,813,000.00 25,000,000.00 25,000,000.00 7,900,000.00 7,900,000.00 624,958,000.00 785,881.00 4,496,708.00 1,352,888.00 43,038,200.00 35,268.85 149,024.10 notes, silver, etc 408,000.00 7,812,380.00 108,564,000.00 Silver coin SI.051.W0.00 37,412,000.00 59,733,330.00 Total gold reserves Silver certificates ( i n c l u d i n g clearing-house certificates) Legal-tender n o t e s ( i n c l u d i n g clearing-house certificates) 37,412.406.54 408.021.21 325,566,000.00 41,018,000.00 Gold with Federal Reserve agents $1,051,330.00 1256,765,000.00 37,292,607.33 Total gold held by banks Legal-tender 177,624,720.00 $3,317,000.00 Gold with foreign agencies Gold redemption $79,140,305.83 $2,705,260.00 612,000.00 Gold certificates ( i n c l u d i n g clearing-house certificates) * O o o H o o *j 132,355,000.00 w w 991,194.00 639,900.00 36,552.00 > 2,288,000.00 47,570,000.00 1,668,000.00 110,852,000.00 672,528,000.00 134,023,000.00 ui M e m b e r b a n k s 7 collateral n o t e s , secured b y G o v e r n m e n t w a r 135,032,810.41 24,731,638.46 493,327,164.58 159,240,510.14 41,966,950.00 O t h e r bills d i s c o u n t e d , s e c u r e d b y G o v e r n m e n t w a r o b l i g a t i o n s . . . . . 78,548,716.97 652,568,000.00 120,516,000.00 > 159,764,000.00 M e m b e r b a n k s ' collateral n o t e s , secured o t h e r w i s e t h a n b y Govern- ui 225,000.00 O t h e r bills d i s c o u n t e d , secured o t h e r w i s e t h a n b y G o v e r n m e n t w a r obligations a n d u n s e c u r e d 12,834,656.44 44,773,780.97 19,055,512.83 00 Co No. 21.—Statement showing condition of each Federal Reserve Bank on Dec. 31,1918—Continued. CO RESOURCES—Continued. 1 Bills discounted, all other Bills bought in open market Boston. $15,084,299.96 Total bills on hand United States Liberty loan bonds owned Other United States bonds owned United States liberty loan bonds sold on installment plan United States Government long-term securities One-year Treasury notes United States certificates of indebtedness to secure circulation United States certificates of indebtedness purchased under re- $77,576,632.94 $44,774,000.00 77,577,000.00 1,105,000.00 666,000.00 6,750,000.00 Philadelphia. $3,011,280.08 $19,056,000.00 3,011,000.00 181,831,000.00 774,919,000.00 140,350.00 1,255,400.00 537,750.00 567,480.00 1,385,000.00 1,396,000.00 825,000.00 8,855,000.00 521,000.00 34,955,000.00 10,033,000.00 157,181,000.00 905,166,000.00 193,249,000.00 6,770,374.11 26,124,422.22 10,277,069.56 5,536,500.00 2,319,865.00 30,235,182.84 22,673,324.08 95,209,734.00 50,526,443.53 68. m, 000. 00 O 353,000.00 128,851,000.00 1,385,050.00 453.00 w W 7,416,000.00 10,210,006.56 338,459.46 3,650,890.00 > o w 1,384,900.00 5,325,500.00 88,049,000.00 Total earning assets $13,060,000.00 15,084,000.00 148,660,000.00 Other United States certificates of indebtedness United States Government short-term securities Due from foreign banks Exchanges for clearing house Checks and other cash items National-bank notes and notes of other Federal Reserve Banks Mutilated currency (other than own Federal Reserve notes) forwarded for redemption Bills discounted in process of collection Uncollected items: Federal Reserve Banks Member and nonmember banks and bankers Uncollected items and other deductions from gross deposits New York. 12,930,622.04 20,627,671.25 3,737,000.00 w o > 41,527,G84,40 12,029,710.01 196,764.000.00 90,853,000.00 6per cent redemption fund against Federal Reserve Bank I'J, 000.00 1,089,000.00 sOOO.OO notes 320,100.00 | 1,322.37 7,349.94 5,427.65 , 481,201.77 2,803,100.SO 611,889.10 70,407. G6 179,079.31 141,442.76 0,372.30 349.95 1,639,250.0.) | 475, 00). 00 Reimbursable expenditures: Capital Issues Committee Liberty loans „ War savings stamps Nickels and cents 271.16 1L37L.O0 Liberty loan bonds sold on installment plan 51,950.00 Liberty loan bonds purchased from subscribers Subscription account—employees 14, KX). 00 13,137.48 800,000. (X) 11,740.39 11,565. &3 75,179.92 30,400.15 , Cost of delivering conversion bonds Bank premises Repairs and alterations, remodeling account; .Furniture and equipment Cost of unissued Federal Reserve currency Overdrafts—member banks 500,000.00 j . 2,317,692.39 | 59,024.31 73,241.51 Unearned discount—suspense 0,408.23 Difference account Internal-revenue stamps 338,374,000.00 resources. Gold bullion a n d coin Gold certificates ( i n c l u d i n g clearing h o u s e certificates).. Gold coin and certificates Gold Settlement Fund, Federal Reserve Board Gold with foreign agencies , 1,051,565.00 Gold Redemption Total gold Agents. Fund reserves. 1,900,488.42 ' 6,086,890.00 \ 2,359,000.00 13,257,000.00 7,987,000.00 2,125,485 53,120, 000. 00 14,253,728.99 j 14,254,000.00 6,302,193.45 j 6,302,000.00 524,598 525, W0.00 204,010.61 | 204,000.00 174,866.23 I 175,000.00 10,817,000.00 65,908,000.00 Total gold held by banks., Gold with Federal Reserve Atlanta. 584,860.00 1,773,610. (X) ; 12,202,620.00 4 >o,004,000.00 1 1,781,044,001). 00 Richmond. Cleveland. 1,404,000.00 5,497,000.00 1,528,000.00 All other resources,. Total 1,658.72 77,275.60 ! . . . 60.86 I . . . - 138,277,370.00 1,368,280.00 14,404,000.00 138,277,000.00 62,990,765.00 j 62,991,000.00 42,179,185.00 42,179,000.00 1,308,000.00 5,368,300.00 j 5,308,000.00 6,957,760.00 6,958,000.00 205,553,000.00 85,170,000.00 63,601,000.00 No. 21.—Statement showing condition of each Federal Reserve Bank on Dec. 61,1918—Continued. CO OS RESOURCES—Continued. Cleveland. Silver certificates, including clearing house certificates Legal tender notes, including clearing house certificates Silver coin Legal tender notes, silver, etc Atlanta. 887,877.00 134,750.00 916.45 $257,802.00 864,852.00 4,309.55 Total reserves Richmond. $55,544.00 165,009.00 16,690.50 > % $1,127,000.00 $223,000.00 $237,000.00 206,680,000.00 85,399,000.00 63,838,000.00 58,008,847.72 14,425,484.03 77,269,400.00 37,944,593.32 Other bills discounted, secured by Governemnt war obligations Bills discounted, secured by Government war obligations Member banks' collateral notes, secured otherwise than by Govern- 115,214,000.00 46,378,086.57 7,792,942.04 72,435,000.00 54,171,000.00 70,000.00 56,350.00 1,248,713.43 12,051,188.32 13,750,590.90 28,615,768.89 Other bills discounted, secured otherwise than by Government war Bills discounted, all other Bills bought in open market 37,445,215.53 12,121,000.00 87,U5,000.00 5,465,166.23 16/f,7SO,000.00 Total bills on "hand O H Member banks' collateral notes, secured by Government war obliga- United States bonds to secure circulation Other United States bonds owned United States Government long-term securities One-year Treasury notes United States certificates of indebtedness to secure circulation Other United States certificates of indebtedness > 1,084,000.00 11,726,000.00 29,864,000.00 12,515,000.00 96,550,000.00 w w 261,600.00. 292,150.00 554,000.00 1,234,000.00 899,000.00 3,885,000.00 1,202,000.00 9,458,000.00 1,065,500.00 12,514,685.61 91,707,000.00 1,234,200.00 1,084,550.00 . 13,807,000.00 5,465,000.00 w o w > 667,000.00 5,297,000.00 102,000.00 4,784,000.00 6,066,000.00 w o 13,000.00 13,000.00 17 7, M0,000,00 Total earning assets E xchanges for clearing house 9,091,063.81 Checks a n d o t h e r c a s h i t e m s . . . , N a t i o n a l b a n k n o t e s a n d n o t e s of o t h e r F e d e r a l R e s e r v e B a n k s 5,733.68 4,275,119.00 Uncollected i t e m s Federal Reserve Banks—Transfers bought, net Other items 97,72,5,000.00 2,876,114,04 5,435,763.87 140,093.54 122,324.66 4,119,829.00 5,918,780.00 20,500,680.07 540,000.00 28,065,337.43 Branches a n d offices Member and nonmember banks and bankers 4,141,886.81 3,115,570.09 16,270,945.31 43,092,369. 75 0, 981, 436.18 2,518,975.61 10,399,909.62 439,868. 43 Miscellaneous 62,830,000,00 5 per cent Redemption 103,183,000.00 Fund against Federal Reserve bank notes 531,800.00 78,203, 000.00 532,000.00 309,900.00 310,000.00 310,690.00 36,010,000.00 511,000.00 Reimbursable expenditures: Capital Issues C o m m i t t e e 3.00 154,937.84 647,-554.09 114,822.09 W a r Savings s t a m p s 1 695.38 L i b e r t y L o a n b o n d s sold o n i n s t a l l m e n t p l a n 327,688.93 128,519.28 71,137.94 13.53 290,000.00 Difference a c c o u n t All other resources Total resources 168,622.52 1,506.01 789,000.00 , 1,336.40 : j 217,000.00 ' 24,300.00 1, 725. 73 Overdrafts—member banks ; 448,421, ooo. oo I 674,00°-00 686,000.00 262,323,000.00 " 204,025,000.00 N o . 21.—Statement showing condition of each Federal Reserve Banh on Dec. 31, 1918—Continued. RESOURCES—Continued. St. Louis. Chicago. Gold bullion and coin . Gold certificates (including clearing house certificates) Gold coin and certificates Gold settlement fund. Federal Reserve Board r Gold with foreign agencies Total gold held by banks $49,140. 00 23,185,045. 00 106,772,373,57 816,042.43 275,803,010. 00 15,151,205.00 751,132.00 1,012,000.00 34,200.00 Total reserves Member banks' collateral notes, secured by Government war obligations.., Other bills discounted, secured by government war obligations Bills discounted, secured by Government war obligations Member banks' collateral notes,secured otherwise than by Government war obligations Other bills discounted, secured otherwise than by Government war obligations and unsecured Bills discounted, all other Bills bought in open 'market Total bills on hand 27o,803,000.00 15,151,000.00 66,673,935.00 3,369,850.00 66,674,000.00 3,370,000.00 2,450,000,00 423,574,000.00 89,257,000.00 226,970,000.00 7,293,087. 96 55,869,000.00 4,949,000.00 93,148,000.00 73,000.00 93,221,000. GO 31,528,000. 00 17,000.00 17,345,012.35 53,918,000.00 62,881,000.00 55,868,410.00 4,948,850.00 53,118,000.00 240,000.00 43,419,233.65 32,330,000. CO 16,950,450.00 14,577,872.67 49,213,-300.00 3,904,341.50 110,171,000.00 $8,323,000. 00 23,774,000.00 233,000.00 33,055.00 38,620.00 1,170.00 1,797,000.00 10,498,637.45 23,774,414,92 233,154,97 86,807,000.00 1,280,876. 00 991,500.40 177,574.00 98,758,687,50 11,412,539.34 62,880,918.85 $4,056,000.00 12,474,000.00 233,000.00 16,763,000.00 421,777,000.00 Total gold reserves Legal tender notes, including clearing house certificates Silver coin, Legal tender notes, silver, etc ,.., 12,474,094.52 233,154. 97 130,823,000.00 , Gold with Federal Reserve agents Gold redemption fund §4,056,010.00 $23,234,000.00 106,773,000.00 818,000.00 Minneapolis. $2,172,390.00 6,150, 720.00 5,126,620.98 17,585,000.00 7,293,000.00 77,996,000.00 17,993,757.63 6,144,000.00 17,994 000.00 54 666 000.00 U n i t e d States b o n d s t o secure circulation O t h e r U n i t e d S t a t e s b o n d s owned 3,997, 800. 00 j 1,153, 400. 00 511, 700. 00 115,560.00 U n i t e d S t a t e s L i b e r t y l o a n b o n d s sold on i n s t a l l m e n t plan 4,970.00 l,15/h000.00 United States Government long-term securities One-year T r e a s u r y n o t e s 1,445,000.00 14,107,000.00 U n i t e d S t a t e s certificates of i n d e b t e d n e s s t o secure circulation. O t h e r U n i t e d S t a t e s certificates of i n d e b t e d n e s s United States Government short-term securities Total earning 530,000. 00 4,350,000. 00 200,500.00 0,568, 000. 00 15,612,000.00 i-H 0,508,000. 00 l. 85,718,000.00 assets.. 59,933,007>. 00 E x c h a n g e s for clearing h o u s e Checks a n d o t h e r cash i t e m s 6, 053,550. 57 1,735,820.80 038,107. 50 2,008,841.15 j . 260,988.02 |. N a t i o n a l b a n k n o t e s a n d n o t e s of o t h e r F e d e r a l "Reserve B a n k s , Uncollected i t e m s : 3,819,300.00 3,921,420,00 375,135.00 i. <;, 505,000.00 1,100,000.00 23,792,190.40 20,772,135.50 2,917,434.00 7,470,757.72 5,470,805.82 Federal Reserve Banks—Transfers bought, n e t . . . . . . . . . . . . . Other items 44,014,081.47 830, G73. 08 10,234,373. SI 10C,130.81 B r a n c h e s a n d offices Member and n o n m e m b e r banks and bankers T r a n s i t sundries Uncollected items and other deductions from gross deposits 5 per cent Redemption Fund against Federal Reserve Banknotes.... Reimbursable expenditures: S29,390,00 78,230,000.00 ' 829,000.00 : 1,300,811.88 21 719.53 L i b e r t y loans W a r Savings s t a m p s A d v a n c e s , w a r savings, a n d L i b e r t y loan Nickels a n d cents L i b e r t y loan b o n d s % $10 p a r t i c i p a t i o n certificates 59, 430, 000.000' 317,000.00 230,200.00 i 421,793.10 139,314.95 |. 20, 430. 73 10,897.39 L 13,124,000.00 233,000. OQ 12,000.00 ;. 10.85 L 9,450.00 2,936,149.26 Furniture and equipment Overdrafts—member b a n k s 29, 500. 00 1.00 ! 7,182. 19 en Difference a c c o u n t . 115.09 A11 other resources. 317, 400. 00 o 2,031,500.00 212.90 B a n k premises V a u l t account Total resources... X 5s 4,360,000.00 ; !...754,0S4,000.00 J_ 4:4,000.00 100,707,000.00 Co N o . 21.—Statement showing condition of each Federal Reserve Bank on Dec. 31, 1918—Continued. RESOURCES—Continued. i Kansas City. Gold bullion and coin Gold certificates (including clearing house certificates).. Gold Settlement Fund, Federal Reserve Board Gold with foreign agencies Total gold held by banks Dallas. 1 ! $73,792.50 1 5,648,000.00 $3,472.50 151,710.00 23,236,521.55 291,443.73 ' $155,000.00 23,237,000.00 291,000.00 6,923,261.30 204,010.61 54,483,690.00 54,484,000.00 22,352,295.00 3,590,042.20 3,590,000.00 2,193,350.00 Total gold reserves 81,757,000.00 59,594.00 38,187.00 3,680.00 $5,722,000.00 6,923,000.00 204,000.00 Total. $95,385,644.25 243,032,785.00 $12,192,000.00 11,056,184.32 11,056,000.00 398,413,727.60 320,588^00" 321,000.00 5,828,874.47 $338,418,000 308,414,000 5,829,000 23,569,000.00 742,661,000 22,352,000.00 |125,614,335.00 125,614,000.00 1263 95173500 2,193,000.00 j 1,789,405.00 1,789,000.00 85,449,422.20 1,263 952 000 85 449 000 37,394,000.00 2,092,062,000 174,519.00 267,700.00 931,674.00 150,972,000.00 317,090.00 195,128.00 6,420.35 9,291,272.00 48,738,734.40 1,397,479.80 101,000.00 1,374,000.00 519,000.00 59,427,000 81,858,000.00 38,768,000.00 151,491,000.00 2,151,489,000 Member banks'collateral notes, secured by Government 12,185,107.50 war obligations 19,875,419.19 623,170.66 2,210,899.15 Other bills discounted, secured by Government war obligations Bills discounted, secured by Government war obligations... 20,499,000.00 Member banks' collateral notes, secured otherwise than 8,203,888.30 829,072.50 by Government war obligations Other bills discounted, secured otherwise than by Gov28,751,159.24 30,300,457.49 $7,701,370.00 4,490,130.00 23,683,000.00 Gold with Federal Reserve agents Gold Redemption Fund Silver certificates, including clearing house certificates.. Legal tender notes, including clearing house certificates. San Francisco. 45,021,583.00 4,428,010.00 14,395,000.00 1,093,987,706.47 159,840,718.28 49,4-50,000.00 . 3,000.00 21,391,661.68 29,306,835.09 285,330,817.15 1,453,829,000 Bills discounted, all other Bills bought in open market,. 36,9-55,000. 00 14,203,000.09 14,203,695.36 Total hills on hand, 2,448,000.00 71,6,57,000.00 U n i t e d States I liberty loan b o n d s o w n e d U n i t e d S t a t e s b o n d s t o secure circulation Other United States bonds owned 8,000,000.00 I 866,450.00 | U n i t e d S t a t e s L i b e r t y l o a n b o n d s sold o n i n s t a l l m e n t plan United States Government long-term securities 29,30r), 000.00 $tft 30,000.0B S, 448,000.09 36,279, 726. 68 2,732,400.00 2, 428,750.00 1,233,600.00 32,200.00 One-year T r e a s u r y notes U n i t e d S t a t e s certificates of i n d e b t e d n e s s t o secure circulation U n i t e d S t a t e s certificates of i n d e b t e d n e s s p u r c h a s e d J under repurchase agreement O t h e r U n i t e d S t a t e s certificates of i n d e b t e d n e s s ' United Stales Government short-term securities 8,806,000.00 306,723,000 292, 196,000 2,052,748,000 140,350.00 j 17,420,550.00 ! 9,701,860.00 X w H O 596,250.00 27,859,099 2,461,009.00 , !W, 000.00 725,000.00 1,000,000.00 9,301,000.00 ; 3,499,000.00 3,175,000.00 3,748,000.00 104,707,000.00 \ 58,000.00 500,000.00 976,000.00 91,370,000.00 j o o o 5,325,500.00 j 4, 318,000.00 I 210,704,000 5,724,000.00 4,400,000.00 o 13,000.00 Municipal w a r r a n t s All other earning Total earning i 115,030,000.00 47,073,000.09 23,800.00 '' 821,000.00 ' .... 56, 280,000. 00 |292,196,466. S3 13,000 assets. D u e from foreign b a n k s E x c h a n g e s for clearing h o u s e Checks a n d o t h e r cash i t e m s I \ 2,291,324,000 1123,224,000.00 6,770,374.11 980,343. 93 , N a t i o n a l b a n k n o t e s a n d n o t e s of o t h e r F e d e r a l R e s e r v e banks Mutilated currency (other t h a n own f e d e r a l Reserve n o t e s ) forwarded for r e d e m p t i o n Bills discounted i n process of collection Depositaries 56,363,000.09 84,901,000.09 460,642.64 833,538.39 ,839,565.00 ; 4,346,941.92 82, 920,133.61 j l 11,980.99 33,255,967.11 749,470.00 6,478,036.00 44,421,044.00 < 259,250.00 19,000.00 3,983,165.00 W 453.00 20,500,680.07 > No. 21.—Statement showing condition of each Federal Preserve Bank on Dec. SI, 1918—Continued. RESOURCES—Continued. Kansas City. Dallas. San Francisco. Total. Uncollected items: $3,595,213.00 $28,400,122.93 Federal Reserve banks—Transfers bought, net $9,877, 492.89 $4,690,917.04 13,348,136.67 309,070,527. 72 12,385,455.34 7,593,248.99 Other items 7,609,042.97 50,987,154. 27 11,053,783.48 339,086.13 Branches and offices 9,263,172.56 234, 543, 457.65 27,302,389.47 7,803,195.97 Member and non-member banks and bankers 33.06 33.00 United States Government Special account 9,441.37 9,441.37 Dallas clearing house 1,343,529.94 1,343,529.94 Dallas clearing house suspense account 106,136.81 Transit sundries 443,048.44 Miscellaneous 3,180.01 Uncollected items and other deductions from gross deposits, \$U, 672,000.00 34,879,000.00 \$23,252,000,00 356,400.00 6% Redemption Fund against Federal Reserve bank notes, 505,600.00 356,000.00 6,253,630.00 566,000.00 311,600.00 312,000.00 Reimbursable expenditures: 27,940.35 10,173. 77 Capital Issues Committee . 1,844.30 1,819.32 358.00 358,00 War Finance Corporation 1.47 Cattle Loan Agency 1.47 8,819,804.47 Liberty Loans 855,321.64 449,452.85 506, 737.46 67,581.80 838,038. 49 War Savings Stamps 12,000.00 Advances, War Savings and Liberty loan 574.32 65,302.97 Nickels and cents 36,343.24 514. 43 52,420.50 Liberty loan bonds sold on installment plan 1G,749.50 51,950. 00 Liberty loan bonds purchased from subscribers 14,160. 00 Subscription account—employees 10,450.00 Liberty loan bonds a/c $10 participation certificates 13,137. 48 Cost of delivering conversion bonds 500,000.00 Bank premises 8,462,961.70 619,600.35 282,519.70 Repairs and alterations, remodeling account...., 11,740.39 29,500.00 Vault account Furniture and equipment Furniture and equipment—recoverable.... Cost of unissued Federal reserve currency. Overdrafts—member banks Unearned discount—suspense Difference account . Internal Revenue stamps , Interest accrued on surrendered stock All other resources Total resources 62,734.97 6,875.00 230,350.37 1,035,630.20 73,241.51 95,374.32 00.80 108.50 32,980.15 11,000.00 I. 0,875.00 ! 1I9,&->4.!W ' 155,170.45 329.180. 29 295,808.82 ! 3, 988. 79 ! 1,1*5,000.00 \ 1,099,000.00 ' 2,ti, 30.1, 000.00 ! . lift,830,000.00 • I 2,075,000 00 i J 9,914,000.00 ll? 1.8 IS, 000.00 ' ,2S5.7S5J)00.00 LIABILITIES. New York. Boston. T Capital, p a i d i n . Capital—Suspense account Capitalpaid in ;.;... Surplus United States Government deposits—General account., United States Government deposits—Special account.. Government deposits Due to member banks—Reserve account Cashier's, expense, return item, and dividend checks.. Federal Reserve Bank drafts Federal Reserve exchange drafts .v. Federal Reserve transfer drafts Collection items—Credits: Goldsettlement fund—Suspense Federal Reserve banks— Transfers sold, net Other items Member and nonmember banks Miscellaneous $<», 691,750.00 I | 75,100.00 10,499,061.50 101,830,9(H). 74 217,590.24 ! ... $0,(192, (MM). 00 j 75,000.00 \ 10,499,000.00 101,837,000.00 \ $20,805,100.00 15,000.00 649,303.50 5,010,891.40 94,737. 70 $7,502,300.00 | 150.00 I $20,820,000.00 '• 049,000.00 ' j 5,700,000.00 < 705,002,001.27 705,062,GOO.CH) j 4,852,515.03 ! : 140,404.01 . . . . . •. 20,344.41 j 173,483.33 \ Philadelphia. $;,5t;3,000.u0 5,039,128.17 !. : 5,039,000.00 99,720,124.95 j 99,': 20,000.00 822,911.05 125.00 I 17,407,049.53 \ 78,980,137.20 8,014,080.42 i. 21,948,4.80.84 '. 0,934,425.41 72,173,899.90 O.sOO, 74 L 19,445,515.80 j 25,125.00 5,993,052.38 22,631,973.89 17,821,671.44 N o . 21.—Statement showing condition of each Federal Reserve Bank on Dec. 31, 1918—Continued. LIABILITIES—Continued. Boston. New York. Philadelphia. | ! i j $47,848,000.00 F o r e i g n G o v e r n m e n t a n d b a n k credits ! \ $95,976,172.85 D u e t o n o n m e m b e r s , clearing a c c o u n t ' \ 4,478,815.06 W a r F i n a n c e Corporation ! Other deposits, including foreign Government credits 1 903,392.23 .. -. Total gross deposits i $163,094,000.00 1 ! ! ! 101,358,000.00 i . 160,184,000.00 975,220,000.00 $66,740,000.00 1 171,499,000.00 $168,986,330.00 819,015,835.00 $241,870,745.00 Federal Reserve notes on h a n d 6,962,500.00 89,188,235.00 11,739,400.00 M u t i l a t e d F e d e r a l R e s e r v e n o t e s forwarded for r e d e m p t i o n 1,297,710.00 3,270.00 1,019,340.00 Less: T o t a l deductions 8,260,210.00 Federal Reserve notes in actual circulation F e d e r a l R e s e r v e b a n k notes 6,889,000.00 ; Less F e d e r a l R e s e r v e b a n k n o t e s on h a n d Federal Reserve bank notes in circulation, 229,112 000 00 729,824,000.00 33,785,000.00 751,000.00 507,100.00 1 net liability 12, 758, 740.00 89,191,505.00 160,726,000.00 6,382,000.00 9,258,200.00 332,037.00 8,926,000.00 33,034,000.00 All o t h e r liabilities: D i s c o u n t earned—Bills d i s c o u n t e d D i s c o u n t earned—Acceptances b o u g h t 698,539.94 9,017,159.97 643,279.28 2,013,817.88 11,792,922.51 2,538,653.05 606,*962.05 2,569,199.62 361,728.37 Interest earned—Municipal warrants I n t e r e s t e a r n e d — U n i t e d S t a t e s securities U n e a r n e d discount—Bills d i s c o u n t e d U n e a r n e d discount—Acceptances b o u g h t 254.35 57,007.33 413,423.61 54,426.40 41,821.34 510,108. 58 77,627.48 1,017,202.54 192,234.93 254,986.84 31,573.20 10,058.22 20,692.07 11,110.37 P e n a l t i e s o n deficient reserves—Suspense o o Discount on United States bonds | 629. 70 59.50 6,875.00 w 23,971.11 S u n d r y profits R e s e r v e d for s u n d r y expenses 24,466.06 Reserved for depreciation on United. S t a t e s b o n d s Depreciation reserve a c c o u n t 89,591.66 W J 9,195.50 I n c o m e , real estate 56,378. 21 H 11,001.83 525.00 O 205,880.00 3,750.00 750,000.00 D u e t o L i b e r t y L o a n subscribers i n default 36,297.52 P a r t i c i p a t i o n certificates, L i b e r t y L o a n bonds 34,410.00 C o n t r a c t s t o deliver L i b e r t y L o a n bonds sold Total 2,449.07 ! 913. 58 D i s c o u n t profit o n b i l l s sold R e s e r v e d for i n t e r e s t o n real e s t a t e mortgage Mortgage, real estate 16,638.33 O 283.00 4,796,451.95 25,535,942.51 3,875,710.54 33,133.69 346,491.68 101,529.38 172,878.27 1,793,645.38 43,309. 74 707,464.90 864,269.34 4,519.66 35.00 608,754.22 216,825.56 481,212. 85 3,439,547.21 972,151.86 Less all o t h e r resources: I n t e r e s t a c c r u e d on U n i t e d States securities E xpense current Disbursements—Transit D e p a r t m e n t Exchange paid O t h e r deferred charges D i v i d e n d account, i n c l u d i n g p r e m i u m on surrendered stock Total Total liabilities 1 23.10 > 32.00 4,815,000.00 22,097,000.00 338,874,000.00 1,781,644,000.00 Tfl 2 904,000 00 > 420„004,000.00 £* CA N o . 21.—Statement shouting condition of each Federal Reserve Bank on Dec. 31,1918—Continued. LIABILITIES—Continued. Cleveland. $9,072,700.00 Capital paid in Surplus United States Government deposits—General account United States Government deposits—Special account Government deposits Due to member banks-^Reserve account Cashier's, expense, return item, and dividend checks Federal Reserve exchange drafts Collection items—Credits: Federal Reserve Banks Branches and offif^s- r .. . x Member and nonmember banks Miscellaneous Collection items $9,073,000.00 749,987.69 ' 123,161,329.85 192,616.86 3,455.73 750.000.00 123,161,000.00 10,177,014.24' 6 ,070,770.19 l ^x Richmond. $4,062,200.00 116,471.73 2,795,094.97 20,500,680.07 54,161,937.72 111,319.95 $4,062,000.00 116,000.00 23,296,000.00 64,162,000.00 22,424,447.06 10,909,174.91 46,222,851.15 79,606.72 87,015,000.00 49,777,000.00 $8,191,000.00 40,000.00 2,840,000.00 46,223.000.00 6,973,458.15 5,199,568.72 375,302.29 9,013,287.09 1,746,856.82 11,682,321.27 12,512,777.25 288,065.10 12,419,061.03 939.86 _ Atlanta. $3,191,350.00 40,000.00 2,839,711.85 28,388,000.00 40,931.30 41,000.00 Other deposits, including foreign government credits Total gross deposits Federal Reserve notes outstanding Less: Federal Reserve notes on hand Mutilated Federal Reserve notes forwarded for redemption Total deductions Federal Reserve notes in actual circulation Federal Reserve bank notes Less Federal Reserve bank notes on hand .. . . Federal Reserve bank notes in circulation, net liability 114,473,000.00 173,688,000.00 . j 266,519,915.00 150,997,770.00 123,620,285.00 14,147,660.00 589,720.00 12,937,890.00 581,850.00 2,786,200.00 161,655.00 14,737,380.00 13,519,740.00 2,947,855.00 ... J i i 72,499,000.00 6.085,600,00 269,000.00 4,276,000.00 270,500,00 | 10,600,000.00 869,385.00 9,731,000.00 , 120,672,000.00 137,478,000.00 Ml, 783,000.00 4,008,000.00 6,816,000.00 All other liabilities: Profit an d loss Discount earned—Bills discounted "Discount earned—Acceptances bought Interest earned—Municipal warrant s Interest earned—United States securities Interest earned—Rediscounts other Federal Reserve banks. Unearned discount—Bills discounted Unearned discount—Acceptances bought Unearned interest—Municipal warrants Unearned interest—Rediscounts Federal Reserve b a n k s . . . Transfers bought and sold, net charges Profits realized on United States securities Penalties on deficient reserves Discount on United States bonds Service charges, net Sundry profits Difference account Reserved for sundry expenses Contracts to deliver Liberty Loan bonds sold Total., Less all other resources: Interest accrued on United States se-cur: Expense current Disbursements—Transit department... Exchange paid Other deferred charges Dividend account, including premium < i surrendered stock. Total., All other liabilities, mi. I 1,120,241.72 |. 1,819,206.27 j . 805,383.77 L "13,198.00 2,390.421.93 273.033.68 147,139.24 j 357,364.03 ! 155,301.42 ' 105,547.86 151,471.27 39,096.13 53,271.80 i 33,326.10 j 141,551.45 ! 39,857.88 163,639.75 j 64,460.60 | 75.11 ! 16,111.91 4,349.50 20,370.45 S30.70 122,653.93 49,064.71 : 59,836.11 ; 62.23 : 63,198.00 ! 10,587.97 |. 802.52 |. 2,920.43 460.76 47,572.19 13,128.00 ! 4.802,710.03 ! 2,353,933.33 3,219,67 58,514.53 574,653.12 51.81 22,055.31 900.25 656.1"5 02I 22,159.86 ! 519,526.06 j 134.294.01 ! 24,961.80 512,532.58 122.829.16 | 232,431.94 | 2,957.31 38-87 1 L^l 't ' 'H O'JQ UO ,'i OsJ Total liabilities,, 423,165.68 1,401,826.29 168,477.53 863.24 38,759.19 a Lubit >JJ 540.490.56 i -Ml ()> J tod OuO u0 it <• j LJO o) .1 l,3Li,000.00 .\ 2O.'tMo,QQ0.GQ No. 21.—-Statement showing condition of each Federal Reserve Bank on Dec. ,31,1918—Continued. 00 LIABILITIES—Continued. St. Louis. Chicago. Capital paid in Capital—Suspense account Capitalpaid in Surplus United States Government deposits—General account. United States Government deposits—Special account Government deposits Due to member banks—Reserve account Cashier's, expense, return item, and dividend checks Federal Reserve bank drafts Federal Reserve exchange drafts Federal Reserve transfer drafts Collection items—Credits: Gold settlement fund—Suspense Federal Reserve banks—Transfers sold, net Other items Branches and offices Member and nonmember banks Miscellaneous Collection items Due to nGnmembers, clearing account Other deposits, including foreign government credits $11,123,100.00 61,950.00 215,799.18 0,565,412.66 877. 44 230,604,383.69 S46,466.40 Federal Reserve notes outstanding $11,185,000.00 I 216,000.00 ! $3,800,000.00 6,566,000.00 i 230,604,000.00 j 52,830,678.16 181,985.13 1,560,218.78 8,463.40 3,333,000.00 52,831,000.00 50,989,000.00 48,825,966.37 302,513.37 5,191,000.00 48,826,000.00 ft H 1,101,434.14 a w w J> 2,314,722.99 156,074.87 7,352,000.00 15,500.00 201,000.00 103,251,000.00 129,119,875.00 O 2,121.10 63,000.00 46,886,000.00 .289,488,000.00 w O 3,411,896.56 201,070.66 1,329,000.00 $2,931,000.00 38,000.00 H 7,484,495.01 400,000.00 1,770,801.57 21,026,270.42 14,446,826.45 7,436.16 1,328,460.42 450,938,010.00 37,500.00 5,191,471.43 3,333,007.84 26,482,800.24 21,034.15 j $2,931,200.00 ! $3,799,600.00 14,743,259.20 3,700,116.20 5,195,014.23 Total gross deposits. Minneapolis. 61,384,000.00 98,724,410.00 <! w o > a Less: Federal R e s e r v e n o t e s o n h a n d M u t i l a t e d F e d e r a l R e s e r v e n o t e s forwarded for r e d e m p t i o n ' ' Total deductions 20,525,690.00 1,592,205.00 „ 428,820,000.00 Federal Reserve b a n k notes Less F e d e r a l R e s e r v e b a n k n o t e s o n h a n d Federa I Reserve bank notes in circulation, net liability 1,813,495.00 L 340,195.00 j . 9 082 S35.00 22,117,895.00 Fcdera I Reserve notes in actual circulation 8 569 260.00 513 575.00 —— — 2,153,090.00 L 120,057,000.00 6 440 000.00 224 000.00 18,525,800.00 882,800.00 96.571,000. 00 I 4,632,000.00 463,454.00 6,216,000.00 17,643,000.00 >-M 4,169,000.00 All other liabilities: Profit a n d loss 1,970,859.43 Discount earned—Bills discounted Discount earned—Acceptances bought 4,646,657.10 718,907.25 I n t e r e s t e a r n e d — U n i t e d S t a t e s securities ; 148,902.85 I n t e r e s t e a r n e d — Bill of l a d i n g drafts Interest earned—Rediscounts, other Federal Reserve banks 230,338.58 2,197,795.40 226,163.86 89,096.26 5,703.16 20,273.21 428,804.48 1,175,998.09 106,410.39 30,116.52 126,699.80 23,280.93 48,209.16 52,106.85 95,610.65 Unearned discount—Bills discounted '• 370,051.29 Unearned discount—Acceptances bought ' 144,535.16 Transfers b o u g h t a n d s o l d , n e t charges | 125,183.62 P e n a l t i e s o n deficient reserves Foreign e x c h a n g e e a r n i n g s : | 35,966.10 595.10 Discount on United States bonds D i s c o u n t profit o n bills sold \ } 89,248.50 741.22 Service charges, n e t ! 3,164.68 25,943.31 133.00 ! 17,396.27 i 1,370.38 11,404.14 891.98 R e s e r v e d for s u n d r y e x p e n s e s ' 19,612.60 P a r t i c i p a t i o n certificates, L i b e r t y L o a n b o n d s ' 9,450.00 ; 8,302,642.55 Collection charges S u n d r y profits Difference a c c o u n t Total ! 2,692.32 O '4 59,491.37 51,920.60 21,697.86 71 47,430.48 5J 4,713.26 ; 14,092.08 ! 3,063,938.39 2,038,978.10 N o . 21.—Statement showing condition of each Federal Reserve Bank on Dec. 31, 1918—Continued. o LIABILITIES—Continued. Chicago. Less all other resources: Interest accrued on United States securities Expense current Disbursements—Transit department Exchange paid Other deferred charges Dividend account, including premium on surrendered stock.. $86,001.33 1,146,691.57 3,176.23 189.27 13,784.07 ! 320,632. 68 | 1,570,475.15 ! Total $33,499.35 j 718,210.98 \ $16,659.09 318,330.24 627.94 8,551.80 ; 404,837. 60 \ 2,878.74 86,574.41 1,165,727.07 All other liabilities, net. $6,732,000.00 Total liabilities.. 754,084,000.00 Kansas City. Minneapolis. St. Louis. Dallas. d > O H O Nl 424,448.48 $1,898,000.00 j $1,615,000.00 235,202,000.00 San Francisco. 166, H w 1000.00 Total. > Capital, paid in Capital, suspense account $3,659,450.00 $3,659,000.00 Surplus United States Government deposits—General account United States Government deposits—Special account « Government deposits Due to member banks—reserve account Cashier's, expense, return item, and dividend $80,684,350.00 82,350.00 $4,631,300.00 5,250.00 $3,154,300.00 $4,637,000.00 $3,154,000.00 1,134,23117 5,450,293.54 67,317,512.25 320,628.85 2,493,217.68 5,450,000.00 67,318,000.00 32,453,086.72 125,847.02 2,493,000.00 32,453,000. 00 w $80,767,000.00 1,134,000.00 400,539.85 50,967,818.64 w o 10,451.76 20,606,747.03 W 73,235,715.37 1,657,914.42 71,574,000.00 411,000.00 73,230,000.00 1,635,432,548.24 1,6,15,433,000.00 9,711,915.04 a Federal Reserve b a n k drafts Federal Reserve exchange drafts ' Federal Reserve transfer drafts ' 10,210.87 3,860.98 7,500.00 350,328.09 500.00 6,833.98 1,735,850.32 39,931.42 594,145. 40 5,803,451.18 5,297,780. 48 4,331,213.45 183,493,129,79 2,094,832.43 4,949,731.71 5.889,892.32 4,360,241.20 67,374,658.25 26,899,181.54 23.2,308,779.36 5,516. 66 1,560. 80 Collection i t e m s — c r e d i t s : Gold s e t t l e m e n t f u n d — S u s p e n s e F e d e r a l R e s e r v e B a n k s — T r a n s f e r s sold, n e t . | Other items | B r a n c h e s a n d offices " 235, W0. 00 Miscellaneous Collection items including 17,434,210.00 5, 129,177. 55 259,>TA02 : 1.07 29,912,000,00 Foreign Government a n d b a n k credits I) a e t o n o n m e m b e r s , clearing a c c o u n t W ar F i n a n c e C o r p o r a t i o n deposits, 4,194,489.90 ! Member and n o n m e m b e r b a n k s . . Other 5,982,943.13 foreign 30,669,996-02 15,250,000. no 18,937,000.00 557,188,000.00 I O 95,976,172.85 . ] \ , 104.47 8,708,590.20 ,643,648.29 911.418.33 government 2,044,000.00 \ : 105,590,000. 00 : 95,228,000.09 \ \2,109,791,000. 00 8,000.00 Total gross 2 deposits. 102,680,000.00 Federal R e s e r v e n o t e s o u t s t a n d i n g Less: Federal Reserve notes on h a n d M u t i l a t e d F e d e r a l R e s e r v e n o t e s forwarded for r e d e m p t i o n Total deductions SO, 204,000.00 120,317,330.00 1,495,050.00 7,101,220.00 ,110,285.00 770,S20.00 140,285.00 542,365.00 7.872,040.00 1,256,570.00 16,993,710,00 229,238,335.00 \ !2,S59,S43,920.00 I 16,451,345.00 . . . . . . . . . . . . . . . . 193,339,180.00 j ; j 7,552,990.00 200,892,170.00 2 to 40<l. 00 12,172,000.00 723,519.00 ill • ?, Co 3,952,000. 00 112,445,00a 0) 7,125,000. 00 126,025,000.00 872,915.00 ' . . . . . . . . 69-J,5O0. 00 6,862,240.00 net 11, l',S, 000. 00 ,540 } 000. 00 0,252,000.00 ! W * 119, 102,000.00 All o t h e r liabilities: Profit a n d loss D i s c o u n t earned—Bills d i s c o u n t e d . . . . | 295,759.08 ; 2,643,113.16 ] 518.168.13 ,084,309.75 731,987.59 1,920,582.79 ! . . . . . ..j .......I RYE Federal Reserve notes in actual circulation Federal Reserve b a n k notes Less F e d e r a l R e s e r v e b a n k n o t e s on h a n d Federal Reserve bank notes in circulation, liability ,..* I O 16,065,105.83 35,625,305.22 ' ; . . . . . . . . rji No. 21.—Statement showing condition of each Federal Reserve Bank on Dec. 31,1918—Continued. C7? to LIABILITIES—Continued. Kansas City. Dallas. San Francisco. Total. Interest earned—United States securities... > * All other liabilities—Continued. $157,982.45 $43,334.02 $634,519.95 312,442.84 877. 55 62,477.28 2,438.91 75,649.41 2,103.38 $6,672,702.94 1,117.59 1,632,765.16 13,815.32 > o w Interest earned—Rediscounts other Federal Unearned discount— Bills discounted Unearned discount—Acceptances bought... Unearned interest—Municipal warrants Unearned interest—Rediscounts Federal 318,851.29 47,374.61 377,637.24 3,479,048.96 949,277.27 75.11 260,553.71 112,246.18 213,958.70 12,257.99 o 1-3 i Transfers bought and sold, net charges Profits realized on United States securities. 103,410.85 202,521.45 81,471.77 293.75 288.'64 63,715.29 i 44,739.46 99,928.66 Penalties on deficient reserves—Suspense.. Exchange received Discount on United States bonds Discount profits on bills sold Service charges, net Collection charges Income, real estate Sundry profits Difference account . . . j. . r \"" 23,493.43 11,576. 59 24,597. 79 ! . 694.68 """"i ! ! i i ! ; 3,571.88 1 ! i | - - - I. 6,540.09 91,000.00 -^ 53,271.80 662,155.46 188,016.04 10,346.86 549,477.25 2,449.07 1,224.80 973.08 145,079.36 9,936.72 101,666.13 133.00 23,971.11 213,852.75 10,127.96 266,496.41 w > ' W Pi Si w o > R e s e r v e d for d e p r e c i a t i o n o n U n i t e d S t a t e s [ bonds Depreciation reserve account 89,591.66 205,5S0.00 R e s e r v e d for e x p e n s e s W a r F i n a n c e C a t t l e I Loan Agency j 355.14 Reservedforinterestonrealestate mortgage; 3,750.00 Mortgage, real e s t a t e D u e t o L i b e r t y loan s u b s c r i b e r s i n default P a r t i c i p a t i o n certificates L i b e r t y l o a n bonds , 750,000.00 36,297.52 1,000.00 ; 44,860.00 C o n t r a c t s t o deliver L i b e r t y l o a n b o n d s sold Total. 13,411.00 4,1^9,874.04 |. J Less all o t h e r resources: I n t e r e s t accrued on U n i t e d S t a t e s securities. Expense current 3,981,648.23 68,200,173.81 i I 62,257.78 30,715.34 689,228.11 363,977.25 ' J .! 37,051.80 490,578.28 621,142.58 ; 8,181,336.15 j 238,999.62 924.12 Disbursements—Transit department Exchange paid * Service charges, n e t P a y roll—Suspense a c c o u n t O t h e r deferred charges Dividend account, including p r e m i u m on s u r r e n d e r e d stock Total All other liabilities, 547.96 2,177,694.61 309,729.25 ; 525,102.07 395,411.60 net. ! 254.29 ; 86.55 ; 1,050,702.22 ! 86.55 7,941.50 1,069,156.64 ! Total liabilities 169.' 84. 50 $(, 693,000.00 119,830,000.00 2V. 303,000. 00 a Credit. 12,270,799.30 $3,456,000. 00 32LSI8,000. 00 • $55, 929,000. 00 5,285,735,000.00 Exhibit D—INVESTMENT OPERATIONS OF FEDERAL RESERVE BANKS. N o . 2 2 . — B i l l s discounted for member banks during each month in 1918, distributed by maturities, and totals for 1918. 1917, 1916, and 1915. PAPER MATURING WITHIN 15 BAYS. Federal Reserve Bank. January. February. March. April. May. June. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. $12,890,384 257,083,603 29,397,347 40,874,644 121,734,872 9,719,063 182,933,019 28,014,970 2,240,574 35,022,957 5,228,109 8,964,745 $17,693,289 198,644,558 20,193,327 32,785,327 112,895,360 7,114,859 110,550,165 20,334,277 1,372,430 8,250,504 8,291,076 16,458,402 $15,523,870 268,804,421 23,716,864 30,690,939 144,532,407 12,312,152 22,823,094 30,248,597 413,879 11,346,374 13,029,562 20,038,866 $22,463,915 1,435,115,707 38,470,531 65,175,448 169,529,130 29.866.109 105,580,740 52,177,346 11,170,601 39,610,458 29,774,697 28.114.110 $25,097,283 2,121,236,516 57,543,872 59,531,772 Total.... Percent. 734,104,287 2.0 554,583,574 1.5 593,479,025 1.6 2,027,048,792 5.5 2,736,456,883 Federal Reserve Bank. Boston New York Philadelphia. Cleveland Richmond.... Atlanta Chicago.. August. September. October. 93,918,843 2,231,922,572 127,793,462 118,418,935 156,488,559 73,586,243 381,635,279 209,372,694 2,855,443,565 153,973,399 129,597,603 202,970,563 107,429,693 433,072,911 259,481,880 3,615,933,337 194,912,938 144,247,360 206,422,565 151,687,565 498,784,212 July. 40,213,229 43,687,270 133,620,014 158,423,142 74,186,256 24,933,147 47,051,281 35,376,905 32,365,344 ' $114,197,595 1,878,772.433 120,460,682 120,671,820 144,178,737 54,273,150 342,122,404 83,789,029 30,949,511 59,948,477 34,656,687 60,329,248 2,921,792,659 7.9 3,044,349,773 8.3 $38,075,028 2,239,798,723 79,547,681 41,075,459 107,272,423 106,108,771 46,721, S36 17,007,772 64,944,172 29,017,470 35,414,176 7.4 November. December. ' 265,031,138 2,838,259,190 336,956,229 189,260,539 263,872,356 150,371,625 341,790,088 338,294,539 3,848,617,643 501,274,022 248,882,510 254,249,504 149,059,357 262,290,360 Total. 1,412,040,458 23,789,632,268 1,684,240,354 1,221,212,356 1,990,255,247 829,320,315 2,973,025,428 W O O Per cent. 3.8 64.5 4.0 3.3 5.4 2.2 S.l w o St. Louis 140,447,290 30,694,245 124,676,298 8,705,428 919,153,024 86,692,376 69,278,543 62,020,630 632,161,925 Dallas 83,069,738 [ 17,347,038 I 49,194,750 j 52,628,654 ! 101,930,356 48,786,054 63,773,189 64,303,997 133,557,031 | 47,258,525 97,048,844 71,127,312 San Francisco. 72,680,772 j 100,575,846 143,508,317 57,850,904 102,749,663 4,471,229,870 12.1 5,563,969,886 4,803,975,643 15.1 13.0 Minneapolis... Kansas C i t y . . . Total.... 3, 458,682,845 Per cent. 9.4 1.7 1.2 2.0 463,304,003 750,885,934 129,688,445 5,997,037,278 10.2 2.5 .7 240,879,204 36,906,710,515 100. 0 • P A P E R MATCRINC A F T E R 15 DAYS BUT W I T H I N 30 DAYS. Federal Resers'e Ban!:. Boston New York Philadelphia.. Cleveland...... Richmond Atlanta Chicago........ St* Louis Minneapolis... Kansas C i t y . . . January. February. 2,923,578 1,929,497 5,527,097 3,998,318 1,870,768 COT.uJl 2,211,205 1,,8.55,658 April. March. 1,817,825 7,230,279 J,190,150 ::, 911,090 1,946,053 2,797,187 954,161 1,884,085 1,691,306 2,649,097 3,702,334 1,679,924 3,508,531 1,169,662 2,418,578 San Francisco. 2,453,323 l,ly--'\001 1,067,249 4,164,579 3,409,190 1,609,107 2,035,550 369,242 680,300 Total.... 34,182,151 26,836,504 24,933,868 22, 434,760 Per cont. 8.9 7.0 6.5 5.9 Dallas... 1 714 620 9,731,201 4,925,069 238 092 483,544 247,996 June. May. 1,001,917 July. 3,486,681 9,020,796 2,322,329 6,347,105 847,190 3,375,833 3,920,244 1,683,056 3,469,046 2,117,801 839,890 2,123,959 3,265,143 737,094 2,460,945 270,221 2,549,903 1,581,394 907,395 669,191 1,713,413 655,946 518,980 751,174 1,565,145 1,337,881 2,897,249 3,135,343 % 872,739 1,105,346 845,857 6,222,091 9,485,535 3,741,774 •3,016,9 IS 2,209,974 1,460 313 5,195,146 2,726,155 2 328 383 1,666,414 .1,76 7,. 440 779,863 4,827,698 33,435,005 27, S72,704 44,648,447 8.7 7. 3 11. 0 N o . 22.—Bills discounted for member banks during each month in 1918, distributed by maturities, and totals for 1918, 1917, 1916, and 1915—Continued, C7T P A P E R MATURING AFTER 15 DAYS BUT WITHIN 30 DAYS—Continued. Federal Reserve Bank. Boston New York Philadelphia.. Cleveland Richmond.... Atlanta Chicago St. Louis Minneapolis.., Kansas City.. Dallas San Francisco. Total... Percent August. September. October. November. December. Total. 279,846 746,514 344,326 '65,132 463,946 098,471 700,382 444,047 800,199 710,998 005,277 877,615 $2,222,108 5,289,657 2,128,735 2,447,254 3,236,987 1,920,871 3,532,171 3,440,829 2,278,568 1,839,143 1,130,011 3,300,929 $1,716,473 4,962,992 2,144,978 2,080,080 2,481,461 2,490,999 5,835,652 2,975,268 1,955,617 2,670,630 2,005,664 1,281,490 $3,416,598 2,691,740 1,402,553 1,413,601 2,095,882 1,515,375 2,131/652 2,559,374 2,632,715 2,275,650 2,393,687 1,356,283 $3,807,401 22,181,176 2,977,737 2,817,857 2,420,603 2,154,146 3,588,575 1,275,985 109,173 1,028,229 1,752,778 1,903,686 $33,824,951 83,989,740 21,355,287 32,171,451 28,889,142 18,399,059 47,778,835 33,402,701 27,591,099 20,539,771 14,516,472 21,452,707 32,236,753 8.4 32,767,263 8.5 32,601,304 8.5 25,885,110 46,017,346 12.0 383,901,215 Per cent S.8 21.9 5.6 S.4 7.5 4.8 12.4 8.7 7.2 5.3 3.8 5.6 > cj > w o w H O 100.0 > P A P E R MATURING A F T E R 30 BUT WITHIN 60 DAYS. Federal Reserve Bank. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago January. $3,986,859 11.846.235 1,854,182 3,011,815 2,380,508 1,684,663 3,891,572 February. $3,283,935 10,919,761 507,238 2,997,403 2,069,395 1,731,686 6,525,072 March. April. May. June. July. $4,233,977 16,584,421 2,060,439 4,453,636 2,355,067 2,073,760 5,696,190 $1,805,733 8,996,623 999,088 5,304,905 7,074,651 1,655,560 7,125,084 $2,872,752 8,116,566 2,485,933 3,414,431 7.509,506 2.219,828 13,072,217 $4,147,915 19,365,652 7,381,645 3,940,575 6,716,463 2,768,904 7,750,103 $12,869,905 20, 750,256 2,614,424 5,570,713 6.417,812 3,079,607 14,057,551 W O St. Louis Minneapolis Kansas City Dallas... ¥ San Francisco Total Per cent Federal Reserve Bank Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total Per cent , 2,753,248 1,163,793 1,220,015 550,671 4,028,408 3,788,150 1 2,682,453 3,406,337 683,802 2,441,573 38,371.969 5.1 41,036,805 1 5.4 August. September. 4,204,190 1,040,431 7,554,587 2,575,439 8,772,113 4.175,970 3,121,582 3,921,187 5,031,868 6,528,105 1,851,289 2,361,907 1, 683,212 1,886,004 55,194,044 7.3 October. 8,487,866 5.763,930 3,691,840 1,924,315 6.785,940 6,732,978 5,733,702 4.835,067 3. I l l , 031 1.642,264 10,338,230 47,345,742 60,389,496 73,581.472 99,786,185 6.3 8.0 9.8 13.2 November. December. Total. Percent. 920,658 420,032 529,153 844,740 571,279 270,484 681,602 122,821 032,327 589,122 234,429 542,458 $4,027,547 10,100,916 1,716,974 3,934,301 4,647,566 3,209,202 9,390,724 6,646,895 6,388,771 4,888,606 3,125,215 6,920,586 $4,549,697 $6,486,240 $7,063,996 $60,249,214 8.0 7,212,529 2,674,716 21,532,862 26,063,853 2,502,955 169,909,706 28,963,123 22.5 47,594,377 3.9 6.3 60,044,248 S.O 36,383,261 103,540,584 63,220,384 13.7 8.4 48,759,105 64,997,303 77,033,379 10.2 6.5 3,859,103 1,636,376 2,391,846 6,268,279 6', 213,996 4,870,909 4,819,726 4,889,808 5,343,940 4,455,819 14,617,971 5,931,631 7,000,806 7,800,867 3,863,184 8,619,201 6,624,542 6,107,708 5,080,743 6,529,082 4.8 2,617,516 388,006 4,541,901 3,545,237 42,588,197 53, 728,347 5.6 7.1 6,118,807 2,795,841 5,024,318 4,972,788 37,687,307 50,570,172 5.0 6.7 72,611,762 75,371,658 754,478,920 9.6 10.0 100 0 N o . 22.—Bills discounted for member banks during each month in 1918, distributedby maturities, and totals for 1918,1917, 1916, and 1915—Continued. P A P E R MATURING AFTER 60 BUT WITHIN 90 DAYS. Federal Reserve Ban1.:. January. February. April. May. June. July. Boston New York Philadelphia... Cleveland Richmond Atlanta.... Chicago... St. L o u i s . . . . . . Minneapolis... Kansas City... Dallas San Francisco. $4,583,772 23,813,860 3,078,685 4,549,877 2,889,232 1.062,441 3,101,886 2,471,965 886,885 1,558,698 316,245 6,947,146 $37,868,013 54,238,125 10,469,088 0,112,828 4,613,055 648,698 6,165,325 2,802,380 1,092,186 5,389,056 501,240 5,595,049 $7,882,753 28,722,971 2,440, 739 7,112,448 2,437,356 1,615,624 4,381,517 3,680,650 330,321 7,149,168 1,849,818 6,060,373 $3,977/320 12, 313,527 1, 660,853 17,001,927 5,320,471 1,154,876 4,045,741 3,239,648 1,328,863 4,567,988 2,922,304 5,791,342 $22,716,406 42,706,079 11,071,935 8,980,697 9,679,203 1,999,957 12,181,939 6,433,353 3,063,797 6,731,779 2,455,315 6,500,721 $8,123,067 25,143,525 5,047,101 5,967,500 9,524,639 2,964,580 10,711,762 6,755,253 4,253,107 4,442,019 2,849,922 6,494,831 $10,309,327 25,905,154 5,024,298 5,523,732 9,824,494 3,411,553 15,588,319 11,552,473 15,518,349 7,334,559 7,014,261 12,403,446 Total.... Percent. 55,260,692 3.6 135,495,043 8.7 73,063,738 4.7 63,324,860 4.1 134,521,181 8.7 92,277,306 6.0 129,409,965 8.3 Federal Reserve Bank. Boston New York.... Philadelphia. Cleveland Richmond.... Atlanta....... Chicago.. St. Louis Minneapolis.. August. $22,605,243 61,973,093 14,593,871 7,208,494 7,183,387 4,173,038 12,941,692 4,075,205 54,7d4,487 September. $13,718,765 22,780,035 3,072,292 4,581,487 4,319,262 5,244,428 8,473,111 5,792,065 19,336,980 October. $38,263,454 85,171,193 14,855,099 * 7,509,753 G, 628,355 9,598,782 22,19g, 305 9,651,888 2,293,701 November. $67,776,871 85,799,626 19,640,196 6,838,853 10,770,565 6,327,472 13,818,473 5,508,782 1,435,399 December. $14,055,832 21,540,168 4,249,828 2,674,028 4,366,897 5,225,775 9,026,004 3,812,238 276,669 Total. $251,880,823 490,107,356 95,203,985 84,061,624 77,556,916 43,427,224 122,634,074 65,775,900 104,580,744 Percent. 16.2 31.6 6.1 5.4 5.0 2.8 7.9 4.2 6.8 Kansas City... Dallas.. San Francisco. Total.... Per cent. 4.545,130 6.230.006 0, 925,090 6,414,016 5,083,990 6, 543, 820 Go,848,983 49,113,554 11,767,478 11,807,573 6, 208,375 9,123,176 4,560,808 5,459,295 4.2 7,908,969 8,044, 584 10,870,052 101,405,771 6.6 86,117,054 1,551,590,954 213 740 087 110,439,994 218 427 177 13 8 7.1 14.1 238 919 257 15.4 3.2 100. 0 5.5 w H AGRICULTl RAL AND LIVE STOCK PAPER MATURING A F T E R 90 DAYS. Federal Reserve Banks. January. 746,929 8,735 82,454 17,964 29,900 9,594 317,909 378,923 49,519 6,865 81,411 63,105 34,229 25,485 115,702 28,483 334,614 190,071 997,365 504,044 743,810 591,574 534,192 31,956 282,067 16,964 502,577 457,518 2,163,218 1,871,135 "870,284 Atlanta. .....J ,- ) S t . Louis Minnpauolis Dallas. .. i 1,909,070 832,588 San Franci^o Total Percent : 4.0 $567,062 $8,591 $117,307 128,410 2,624,89S 45,744 553,227 598,724 2,303,040 182,290 678,667 101,446 105,292 2,059,858 1,593,515 3,754,561 2,497,094 291,220 3,303,806 4,956,141 487,370 625,285 1,400,441 657,362 15,052,513 3,163,337 2,342,583 3,875,343 7,151,247 3,076,966 8,448,686 3,600,733 2,276,805 2,579,751 4,492,772 2.9 7,662,858 2^,210,782 21,701,688 18.0 13.9 25,203,781 10.1 407,064 J July. June. May. $2,992 63,394 New York. Philadelphia.. Chicago... April. $357,896 $134,607 | March. $52,300 018 1,191 Boston Cleveland Richmond........ Febr: 4.9 1,334,363 1,032,949 12,375,985 8.0 4,020,911 o w o o No. 22.™Bills discounted for member banks during each month in 1918, distributed by maturities, and totals for 1918, 1917.1916, and 1915—Continued. AGRICULTURAL AND LIVE STOCK PAPER MATURING A F T E R 90 DAYS—Continued. August. Federal Reserve Banks. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. Total.... Per cent. September. October. November. O December. Total. $995,882 $16,133 24,659 5,250 19,529 112,130 217,560 871,860 247,838 1,863,123 1,708,043 1,804,892 1,949,291 $1,150 1,903 327,000 8,454 21,275 164,982 1,530,757 39,090 127,028 1,895,428 1,038,180 550,027 $30,603 25,623 735,465 52,561 59,621 69,195 4,056,355 96,131 232,728 4,666,184 1,000,986 905,679 $4,905 7,667 13,080 69,094 19,466 90,746 2,381,146 8,500 • 623,696 6,711,612 1,992,381 1,283,257 51,425 26,968 82,521 1,257,224 17,213 429,651 2,941,712 3,334,193 1,392,911 8,840,308 5.7 5,705,274 3.6 11,931,131 7.7 13,205,550 8.4 10,539,594 6.8 Per cent. $2,289,488 1,899,387 3,835,525 1,078,188 3,099,818 2,600,228 18,271,089 3,585,245 18,152,556 61,241,536 23,066,430 17,126,753 1.5 1.2 2.4 .7 2.0 1.6 11.7 2.3 11.6 39.2 14.8 11.0 January. February. March. y A r-4 > o H O w 156,246,243 100.0 W W f> TOTAL AMOUNT OF BILLS DISCOUNTED. Federal Reserve Banks. > April. May. June. $30,493,954 1,460,681,317 42,382,588 90,279,781 185,056,053 33,868,533 119,858,180 62,992,887 17,883,752 54,769,187 36,370,522 $54,176,114 2,181,143,351 71,966,894 75,352,252 128,215,089 46,620,113 164,506,434 59,554,252 29,595,092 95,717,514 37,238,585 $52,676,930 2,290,684,905 92,825,911 53,114,358 July. August. September. fcd Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas $24,519,200 $60,827,034 299,141,079 267,801,380 36,200,982 31,868,368 50,662,541 47,548,601 128,941,681 120,808,043 14,217,630 10,587,977 200,191,870 127,687,208 30,350,961 7,253,240 21,578,547 10,332,730 38,197,208 5,463,060 40,194,284 7,175,609 $29,816,321 321,342,092 29,416,927 45,486,088 151,386,585 16,984,180 35,287,463 40,503,410 2,346,072 31,903,838 20,436,654 127,522,478 $143,716,885 1,935,041,788 134,466,076 134,828,927 163,184,244 51,350,209 62,823,347 181,653,391 379,326,460 94,624,576 105,035,887 41,698,266 59,550,132 63,441,733 83,131,838 44,073,965 51,874,194 $123,740,723 2,306,086,870 147,266,062 131,256,830 168,819,301 82,345,796 405,830,815 91,959,649 86,807,174 58,748,043 67,580,221 $229,342,264 2,893,616,076 161,218,400 140,569,099 215,195,653 117,969,176 455,999,674 117,849,235 76,917,401 78,626,372 74,681,393 GO o o San Francisco. o o 00 Total, Total, Total, Total, o Percent, I Percent, «p P e r c e n t , Percent, 1918.. 1917.. 1916.. 1915.. 25,800,609 30,023,903 7,943,385 48,933,656 43,559,107 90,478,373 91,817,614 123,154,961 S68,229,619 762,444,698 754,933,533 2,172,580,139 2,993,019,346 137,225,829 3,343,458,151 3,762,259,098 4,685,139,704 18,326,286 22,408,604 26,788,982 50,055,801 91,413,473 9.387,300 11,521,500 11,195,500 20,183,000 220,939,974 17,351,800 548,164,104 7,664,600 750,269,838 11,660,000 460,733,354 11,115,000 10,712,800 12,530,300 13,399,700 10,549,300 12,145,700 13,406,000 1.9 1.9 5.5 7.5 7.9 12,233,700 9.4 14,405,000 2.2 13,238,000 8.4 0.2 0.3 0.3 0.6 1.0 8.4 5.1 2.5 11.8 6.1 5.4 3.7 4.5 5.5 5.4 8.3 6.9 7.8 8.3 6.5 7.5 5.6 8.3 9.7 6.7 8.2 7.6 8.9 1918.. 1917.. 1916.. 1915.. Federal Reserve Banks. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis K a n s a s City Dallas S a n Francisco October. 1 $304,042,107 3,713,305,674 215,323,196 157,748,857 221,860,281 168,736,349 545,492,495 154,899,519 58,365,113 117,418,462 85,423,080 161,347,744 November. $342,715,751 2,948,291,085 359,648,434 199,973,933 282,972,265 163,649,158 366,052,990 155,524,753 38,003,571 106,636,155 74,899,599 116,229,628 December. T o t a l , 1918. T o t a l , 1917. $1,760,284,933 24,535,538,457 1,833,598,274 1,386,117,996 2.159.845.371 $350,919,310 6,511,274,920 223,416,008 211,176,106 401,220,685 $33,921,900 22,329,500 22,328,400 160,977,619 j 930,130,087 283,963,030 3,265,850,010 133,644,917 , 1.085.137.254 95,114,744 521,872,103 181,117,652 $364,217,650 3,918,402,840 511,014,436 259,296,729 265,883,698 9,908,927 433,791,800 81,354,589 833,520,562 77,591,214 587,677,766 148,827,882 941,441,337 39,752,933,847 T o t a l , 1918 5.903.962.877 5,154,597,322 T o t a l , 1917 T o t a l , 1916 ! 2,681,165,854 11.862.900 3,206,486,771 17,904,100 6,215,083,531 937,433,413 63,716,000 T o t a l , 1915 P e r c e n t , 1918 15,050,800 18,269,700 15,412,000 14.9 13.0 15.6 P e r c e n t , 1917 29.9 35.7 P e r c e n t , 1916 P e r c e n t , 1915 5.7 8.6 9.3 11.3 9.9 30.7 9.6 ; 23,324,475 80,154,716 237,690,76S 52,052,600 102,981,206 T o t a l , 1916. T o t a l , 1915. $2,086,700 6,792,400 4,819,600 5,137,100 4,526,000 34,377,200 44,891,400 22,323,200 34,209,300 23,178,100 9,238,700 6,317,600 8,842,700 6,473,500 5,206,500 10,875,500 6,817,700 18,512,500 26,756,900 1,973,400 7,287,700 14,308,800 P e r c e n t , P e r c e n t , P e r c e n t , P e r cent, 1917. 1918. 1916. 1915. 4.5 61.8 4.6 3.5 5.4 2.3 8.2 2.7 1.1 2.1 1.4 2.4 ! 16.3 10.7 10.7 3.3 16.5 10.7 11.2 4.3 3.1 3.3 8.9 1.0 3.9 72.6 2.5 2.3 4.4 1.1 6.0 2.0 0.9 2.8 0.6 1.1 1.3 3.0 3.2 2.8 27.8 21.2 5.7 3.9 3.2 6.8 16.6 4.5 i 8,968,990, 818 207,870,500 ; 161,353,000 ! 100.0 100.0 100.0 100.0 1 i No. 2 3 . -Bills discounted by each Federal Reserve Bank, distributed by States; also number of banks accommodated through the discount of paper, during 1918. States. Number of m e m Number ber b a n k s in accommodated each during State 1918. on Dec. 31,1918. Maine 65 New Hampshire. 55 Massachusetts Total amount of p a p e r discounted. States. $40,839,164 30 39,054,712 District N o . 7 District N o . 9 32 32,523,734 178 131 1,499,921,400 20 16 Total amount of p a p e r discounted. > >. fcti 30 48 Number of m e m Number ber b a n k s i n accomm odated each during State 1918. o n Dec. 31,1918. to Michigan: 1S6 128 $612,0S0, 430 o 36 17 3,659,108 2°2 145 615 739 538 District N o . 7 129 96 342,672,516 District N o . 9 49 30 10,284,681 178 126 432 333 385,191,840 373 161 168 61 1,741,500,084 46,677,211 w 534 229 1,788,177,295 w w 214 125 64 26 184,405,140 28,355,102 Total 69,052,661 j Wisconsin: Connecticut: District No. 1 57 16 30 13 78,893,262 45,842,080 Total Total N e w York N e w Jersey: District N o . 2 Total 73 43 124,735,342 555 407 24,181,383,095 152 102 308,313,282 78 55 86,843,370 230 157 395,156,658 1 22 13 11,660,600 Illinois: District N o . 7 Total Indiana: District N o . 7 Pennsylvania: District N o 3 Total Ohio 561 389 311 100 1,735,094,298 555,474,714 j Missouri: 872 489 2,290,569,012 416 184 790,608,920 1 Total District N o . 8 Total > ir1 278 9 151 212 760 42 95 54 763,274,258 57 30 361,055,504 152 84 1,124,329, i62 ••• • •• • — W o Kentucky: District No. 4 . . . District No. 8 . . . Total West Virginia: District No. 4 . . District No. 5 . . Total District of Columbia Maryland Virginia North Carolina South Carolina Louisiana: District No. 6 . . DistrictNo.il. Total C9 40 80,572,946 113 - 72 116,059,833 4 13 107 35 4,547,475 18,043,138 120 39 22,590,613 88 93 | 1 j Total 35,486,887 159 Total Mississippi: District No. 6 . . District No. 8 . . 32 103 Tennessee: District No. 6 . . District No. 8 . . Georgia Florida Alabama 74 9 05 107 74 83 3,5,255,243 272,526,166 Arkansas Minnesota North Dakota South Dakota Montana Wyoming Nebraska Colorado Kansas 88 324 173 137 148 39 200 128 243 61 235 118 91 89 22 105 76 100 Oklahoma: District No. 10. DistrictNo.il. 315 36 213 31 138,788,664 9,557,232 351 244 148,345,896 12 37 8 31 2,461,667 11,521,998 49 39 13,983,665 630 467 540,158,745 10 11 9 1,828,023 6 2,207,705 21 15 4,035,728 40 131,448,094 109 31 3 168 54 76 77 8, C91 5,393 17,518,176 31,766,675 11,794,375 7,271,898 213,410,673 68,956,667 41,575,489 1,466,403,347 Total 187,059,493 180,557,983 New Mexico: District No. 10. District No. 11. 91 21 51 20 130,925,181 98,660,820 112 71 229,586,001 Texas 116 62 105 107 51 278,623,585 56,382,925 53,727,013 Arizona: DistrictNo.il. District No. 12. 19 15 16 16 75 61,234,665 358,768,785 Total Total 18,671,303 6,362,252 35 31 25,033,555 33 28 14 10 391,800,080 24,611,769 47 38 416,411,849 Utah Nevada California Oregon Idaho Washington | 10 281 , Grand total.. j 97 1 95 960,600 545,594,322 37,105,409 57,383,894 166,741,313 39,752,933,847 No. 24.—Member banks' collateral notes, also customers' paper secured by Government ivar obligations, discounted by each Federal Reserve Bank, by months, during the calendar year 1918, January. Federal Reserve Banks. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City.... Dallas San Francisco.. Total 1918 Members' collateral notes. February. Customers' paper. Boston.. .i New York Philadelphia Customers' paper. Members' collateral notes. Customers' paper. May. Members' collateral notes. Customers' paper. Members' collateral notes. Customers' paper. $5,978,158 $6,232,329 $6, 783,000 $40,049,332 $8,132,600 $8,896,879 $16,372, $3,746,698 $20,764,048 $23,920,032 173,529,413 18,843,279 99,726,403 55,772,061 148,688,220 19,088,300 1,355,966, 11,237,688 1,900,216,460 38,610,339 3,548,155 4,416,425 3,311,200 17,371,856 8,745,100 2,694,060 28,176, 1,886,401 45,022,975 10,867,822 20,770,500 4,180,887 23,110,500 3,965,345 8,753,000 5,606,805 55,544, 3,878,229 48,543,431 6,546,557 11,152,470 9,687,106 11,419,060 17,952,994 14,959,600 23,458,038 82,804, 15,472,498 96,162,708 4,524,938 3,131,500 100 5,980,400 30,000 20,192, 29,847 29,225,000 74,739 2,149,588 2,018,963 77,302, 743,493 79,119,353 5,454,935 20,498,983, 1,688,293 37,593, 180,034 33,576,941 594,262 8,141 15,210,500 426,024 256,669 0,215,300 89,119,492 390,984 84,769,114 2,154,554 9,363,100 309,965 9,594,883 497,030 1,490,788 31,780 307,000 124,668 70,000 5,050 5,343,300 401,392 3,388,900 105,948 8,901,903 10,000 36,251, 113,000 46,951,500 9, 751, 2,841,000 5,481,500 306 11,795,800 135,509 29,286, 357,989 27,858,060 361,945 4,541,300 10,732,600 286,655 12,770,600 38,009 19,695, 76,078 28,920,130 296,168 261, 755,660 j 138, \ 1,849 251,445,794 63,669,906 37,730,096 2,431,571,106 91,934,430 1 333,892,976 44,614,222 June. Federal Reserve Banks. Members' collateral notes. April. March. July. August. 1,768,938,819 September. October. Members' col- Customers' Members' col- Customers' Members' col- Customers' Members' col- Customers' Members' col- Customers' paper. paper. paper. lateral notes. paper. lateral notes. paper. lateral notes. lateral notes. lateral notes. $32,528,996 2,065,401,011 55,564,390 35,874,230 $6,859,635 19,477,160 11,433,381 2,173,126 $98,378,346 $16,676,168 1,559,668,587 32,148,364 67,222,418 9,801,345 82,621,846 7,103,274 $88,800,196 $26,591,023 1,997,927, 111 51,817,705 91,960,382 19,026,615 89,755,710 4,662,051 $202,286,223 $13,957,411 2,632, 741, 590 19,681,595 7,334,050 128,688,408 103,930,433 2,990,626 $246,238,850 3,413,439,.359 163,310,194 117,217,932 $39,492,285 80,049,179 26,131,220 9,750,533 Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 101,978,577 29,029,252 87,900,794 50,021,750 18,074,920 31,977,778 34,618,750 25,591,362 3,324,045 21,447 973,114 140.. 085,437 1,303,151 241,195 262,473 108,613 392,640 68,299,067 ! 2,574,561,810 46,569,980 I .! ! ! ! ' Total 1918 . 196,504,254 S3,795,425 2,673,036 716,719 204,682,578 5,162,993 123,190,750 3,880,671 2,535,951 808,113 417,479,346 9,188, 248 121,072,300 1,462,833 1,621,458 575,549 772,147 36,595,950 194,637 78,242,256 803,117 69,063,022 1,187, 797 1,303,396 324,088,650 90,094,550 45,070,335 56,652, 023 61,890,485 96,146,167 2,281,982 138,511,760 1,933, 761 3,007,485,670 119,847,633 4,021,888,543 56,008,637 5,129,044,297 2, 945,200 125, 698 151,944,645 5,008, 415 55,559,162 284,729 4,895,398 848,149 256,902,885 6,056,940 71,292,183 735,080 45,844,500 2,867, 225 39,912,923 305,683 50,661,040 1,188, 771 43,296, 900 1,416,412 220,703 612,202 781,328 66,924,933 2,391,811,025 77,574,241 36, 950,919 198,153,410 26,691,137 37,389,208 33,053,750 X 3 179,237,274 I O November. December. Total. Federal Reserve Banks. Grand total. Members' collateral notes. Customers' paper. Members' collateral notes Customers' paper. Members' collateral notes Customers' paper. > O % Boston New York ! $237,387,085 | 2,637,805,627 Philadelphia Cleveland Richmond ; ! ! $306, 478,500 3,694, 340,744 447, 382,929 231, 159,800 250, 688,349 115,227,550 207, 519,850 118, 885, "608 8,599,550 59, 042,364 59, 519,264 120, 958,691 $19,176,870 67,650,409 51,866,437 99,067,952 $74,583,318 100,617,285 37,865,117 9,390,876 9,937,554 4,378,530 5,400,200 2,273,011 1,353,006 1,408,670 1,328,102 2,505,749 4,350,206,812 251,041,418 5,619,803,199 141,165,494 286,310,717 171,371,385 258,879,599 Atlanta I l l , 562,050 Chicago St. Louis 271,506,815 127,923,275 Minneapolis 26,814,480 Kansas City Dallas San Francisco 66,711,390 ; ' 26,564,810 11,785,274 4,208,353 1,430,283 3,506,522 3,005,918 16,064 430,432 844,049 2,546,510 $1,270, 128,802 21,739, 451,335 1,32S,243,568 988, 653,567 1,521, 261,520 620,059,608 2,096,011,297 764, 216,431' 234, 520,760 470,765,470 440, 935,658 667, 157,695 6,897,430 12,562,351 $1, 550,310,782 22,254, 444,699 1,504, 636,670 1,060. 687,150 1,625; 616,690 631, 032,371 2,139, S30,599 777, 982,270 242, 826,420 475, 659,106 447, 833,088 679, 720,046 1,247,674,180 33,390,079,891 $280,181,980 514,993,364 175,393,102 72,033,583 104,355,170 10,972,763 43,319,302 13,765,839 8,305,660 4,893,636 in o Xfl % W Total 1918 32,142,405,711 > w. N o . 25.—Member hanks collateral notes discounted by each Federal Reserve Bank, by months, during the calendar year 1918. Federal Reserve B a n k s . Boston New York January. Chicago S t . Louis Minneapolis... Kansas C i t y . . . March. April. May. June. July. $6,969,158 $7,563,000 $8,867,600 $17,896,650 $21,114,273 $34,044,207 $106,522,346 191,983,003 113,307,759 185,997,126 1,356, 791,810 1,980,216,460 2,065, 401,011 1,559,668,587 3,548,155 3,311,200 8,745,100 28,176,700 45,025,475 55,564,390 67,222,418 20,980,500 23,11*0,500 8,813,000 56,204,800 48,791,431 35,888,230 82,639,846 11,162,470 11,464,060 14,979,600 84,438, 743 99,401,208 103,454,327 141,301,187 Philadelphia.. Cleveland Richmond Atlanta February. 6,966,550 3,375,000 7,151,900 20,243,300 29,883,500 31,289,252 37,385,919 i 183,385, 475 2 108,545,995 19,221,528 99,212,310 127,953,684 148,643,204 324,747,385 9,363,100 9,669,883 20,548,983 37,593,791 33,576,941 56,116,750 68,409,067 2,120,788 482,000 396,960 10,151,834 16,110, 781 22,403,920 30,209,905 34,539,269 6,863,900 10,221,089 39,165,809 62,968,926 46,178.482 58,830,681 4,792,609 8,236,500 12,764,900 29,548,550 28,728,060 35,298,750 34,276,570 Dallas San Francisco. 6,131,300 10,782,600 12,770,600 19,695,300 28,922,630 25,918, 762 43,471,900 Total.... 481,942,377 306,662,397 310,478,386 1,799,119,597 2,502,693,369 2,660,201,285 2,554,685,811 October. November. December. September. August. Federal Reserve B a n k s . Boston New York $89, 718,196 $204,586,223 $256,833,350 $258, 784,085 $333,244,550 SI, 346,143,638 1,997,927,111 2,632,741,590 3, 413,824,359 2,637,805,627 3,694,340,744 21,810,005,187 Philadelphia 91,960,382 128,695,908 163,310,194 286,310,717 447,382,929 1,329,253,568 91,410, 710 105,450, 433 117,567,932 171,506,385 231,229,800 153,870,145 200,734,254 204,952,659 261,892,632 251,096,699 993,593,567 1,538,747,984 Minneapolis, 55,904,162 84,194,425 124,004,750 112,142,108 116,963,950 629,504,816 282,286,380 340,547,274 429,772,433 287,513,473 217,725,950 2,569,555,091 765,663,931 71,343,183 90,194,550 121,614,800 128,248,275 118,985,608 61,898,403 48,320,335 46,817,950 29,367,180 8,636,550 276,916,606 48,287,254 62,870,878 94,820,815 85,229,511 69,158,080 619,134,694 52,364,140 64,085,485 70,658,262 57,411,937 61,722,790 459,888,553 66,924,933 96,146,167 138,636, 760 99,067,9c 2 120,961,691 669,380,595 3, 063, 893,£99 4,058,567,522 5,182, 814,264 4,415,279,882 5,671,449,341 33,007,788,230 r K a n s a s City Dallas S a n Francisco > Total...?..... . i I n c l u d e s $88,167,000 of U n i t e d S t a t e s Securities t a k e n u n d e r r e p u r c h a s e agreements. 2 d o Total. Cleveland Richmond Atlanta Chicago S t . Louis > I n c l u d e s 186,007,000 of U n i t e d S t a t e s Securities t a k e n u n d e r r e p u r c h a s e a g r e e m e n t s . 8 •72 W O d N o . 26.— Trade acceptances discounted by Federal Reserve Banks during each month in 1918, and totals for 1918 and 1917. Federal Reserve Banks. January. Boston New York . ... . . Philadelphia Cleveland . Richmond . . . . . Atlanta... . "... Chicago St. Louis Minneapolis K a n s a s City Dallas February. $1,681,761 $623,541 4,934,254 11,123,967 118,747 120,612 1,847,172 2,200,071 801,209 547,899 621,871 573,167 March. April. $1,441,002 4,986,983 957,654 1,619,742 1,002,270 1,399,686 $287,007 3,811,992 762,997 1,729,270 1,063,149 436,300 May. June. July. $901,692 $1,053,260 $551,835 4,249,429 5,605,182 4,136,385 355,851 451,466 513,811 2,670,568 2,053,702 2,301,768 2 1,006,215 1,285,817 1,108,428 H 873,152 419,352 1,110,360 281,487 128,167 553,436 314,103 264,744 1,142,274 868,740 1,108,623 1,754,783 2,367,480 1,639,269 1,205,288 1,109,843 1,354,693 o 65,349 33,394 11,662 213,950 790,762 1,397,180 28,039 670,674 1,082,091 246,619 867,638 > 157,266 36,585 1,747,219 714,672 1,075,446 194,762 620,434 378,147 510,981 450,700 725,207 o T o t a l , 1918 13,998,454 19,217,453 16,230,557 11,120,947 13,165,738 14,810,953 13,822,0G9 m T o t a l , 1917 574,464 856,078 762,820 678,022 1,767,702 2,521,374 1,077,607 S a n Francisco Federal Reserve Banks. Boston August. N e w York Philadelphia 602,986 5,630,306 557,442 Cleveland 1,832,837 Richmond Atlanta Chicago S t . Louis Minneapolis K a n s a s City Dallas S a n Francisco Total, 1918.... Total, 1917.. September. 772,059 1,038,799 9,836,692 347,038 3,142,641 1,112,713 175,920 910,206 1,073,997 663,252 893,103 100,857 1,090,403 40,221 525,597 146,213 680,937 October. 1,089,130 8,041,286 182,300 1,616,281 1,526,210 2,235,224 2,332,938 1,723,642 November. 913,868 December. 571,076 445,042 5,340,319 522,651 2,980,117 759,484 1,559,228 2,321,011 1,867,914 1,750,090 558,361 1,044,994 T o t a l , 1918. 10,287,131 70,676,912 o T o t a l , 1917. 6,115,127 w 6,863,800 726,078 > 5,650,053 24,894,291 13,389,109 11,697,196 3,160,449 4,562,494 m 9,033,011 15,681,201 429,845 3,114,503 < 799,371 10,400,938 363,673 2,646,322 W 873,326 2,056,758 12,806,608 177,953 5,210,298 187,372,579 1,295,226 1,191,868 621,661 618,931 4,629 50,576 4,075 447,202 963,425 74,821 586,970 858,850 408,835 1,983,350 3,217,459 808,205 451,306 904,176 12,762,403 20,917,189 23,519,494 16,190,679 11,616,643 1,668,063 1,125,834 4,354,747 6,959,770 15,424,651 4,400,590 37,771,132 F > No. 27.—Total bills and war paper discounted during each month in 1918 by all Federal Reserve Banks and by the Nero York Federal Reserve Bank 00 [In thousands of dollars.] War paper Total war discounted by Federal paper dis- Reserve counted. Bank of New York. Per cent war paper discounted by New York Federal Reserve Bank to total war paper discounted. Per cent bills disBills dis- counted by counted by York Total bills the Federal| New Federal discounted Reserve Reserve Bank of Bank to New York, total bills (discounted. > % > w O H January... February.. March April May June July August September. October November. December.. Total 378; 400, 315. 806: 523, 621, 469, 127, 077, 308, 601, 760, 33,390,080 192,373 155,496 167,777 367,204 998,827 084,878 591,817 049,745 652,423 493,489 738,423 761,991 22,254,444 51.0 39.0 53.2 75.6 79.2 80.0 64.5 65.5 65.0 65.8 59.5 65.3 January February... March April May June July August September. October November.. December.. Total.. 868,230 299,141 762,445 267,801 754,934 321,342 172,580 460,681 993,019 181,143 154,597 948,291 215,083 918,403 34.5 35.1 42.5 67.2 72.9 73.0 57.9 61.3 §1.8 62.9 57.2 63.0 39,752,934 24,535,538 61.7 137,226 290,685 343,458 935,042 762,259 306,087 685,140 893,616 903,963 713,306 O W O H W S> <1 B W O & Fb WAR PAPER AND TOTAL BILLS DISCOUNTED BY ALL FEDERAL RESERVE BANKS AND THE FEDERAL RESERVE BANK OP NEIY YORK, DURING EACH MONTH IN 19/8. \n Gave I: Tfarfixfter discounted by&ue> J:\%.<j5a,nfCofJYex>yorfC. Curw>2: JodaimrJ^r &tscoun£ed &t/J?UJFJZ.J8axJ&. Cun>6>3: 3iUs 2)iscowi6ed by the. JTJt. J3cmfc cfJfewfforfC. Cvurve4:3ills &isccvut£edbyJ?IL3rjl.$*nJcs. 1 1 ^ II Ml Mm s / / / / / X / hem s S r S* S , VMQO /y*'' // r<^>. .—- - T @ - J T^JH v^-^ / r -ty\ y f earn t soam ^twll s/ / y XV t * \ / Cd\** *--**VL/ yy y ' N y•**— N X N[/ // 3axr\ Ss Ss ^^y «~ **" / //'' / /// wooo // k 1! r» - / / >f * 1br-*» M // ^-—^ JAM. H. . FEB. -. ( MARCH APRIL MAY JUNE JULY AUG. SEPZ OCT. flOY. DEC. o II" No. 28.—Number of banks, by districts, accommodated through the discount of paper during each month in 1918. O January. February, Federal Reserve Bank. Boston New York Philadelphia. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas San Francisco Total... March. April. May. June. July. August. sptem October. September. November. December. Total. 100 109 140 138 179 161 182 215 211 229 196 208 219 228 278 306 328 323 335 346 366 379 522 86 65 84 135 202 217 245 270 305 318 342 457 315 76 73 82 118 150 143 166 144 185 165 172 136 320 127 141 144 181 254 255 268 261 229 235 258 238 373 327 77 76 90 112 163 218 214 207 194 216 250 251 299 251 256 237 359 421 543 562 589 596 666 482 850 54 40 64 U2 125 134 139 170 190 204 179 176 278 129 88 72 174 276 304 399 395 291 211 197 161 580 106 112 133 221 315 307 327 290 300 356 344 317 554 61 162 234 304 327 424 436 355 457 422 388 548 109 114 160 160 206 232 386 269 257 259 222 415 1,568 2,100 2,793 3,462 3,671 3,464 3,610 3,667 3,288 1,432 1,353 No. 29.—Average rate {per cent) charged on all paper discounted by each Federal Reserve Bank, by months, during the calendar year 1918. January. February. March. Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta *. 4.24 3.82 3.99 4.03 4.02 4.13 3.94 4.04 3.90 3.99 3,98 4.03 4.17 3.96 4.22 3,84 3.97 4,19 3.97 4,12 4,44 April. 4.31 4.05 4.12 4.33 4.33 4.20 4.26 May. 4.28 4.09 4.21 4.35 4.50 4.30 4.43 June. 4.37 4.14 4.16 4.44 4.67 4.34 4,40 July. 4.32 4.11 4.14 4,29 4.63 4.30 4.27 August. 4.22 4.12 4.13 4.25 4.45 4,24 4,23 Septem- October. November. ber. December. 4.10 4.09 4.08 4.15 4.31 4.17 4.24 4.17 4.05 4.02 4.12 4.29 4.21 4.25 4.22 4.06 4.06 4.23 4.45 4.23 4.22 4.07 4.09 4.11 4.21 4.41 4.21 4,24 Average for year. 4.17 4.06 4.09 4.21 4.38 4.06 4,24 St. Louis 4.11 4.13 4.01 4.24 4.37 4.49 4.39 4.25 4.27 4.29 4.21 4.16 Minneapolis.. 4.97 4.73 4.84 4.88 4.98 4.90 4.86 4.55 4.68 4.44 4.42 4.57 Kansas City.. 4.28 4.53 4.53 4.59 4.84 5.07 5.24 4.77 4.78 4.78 4.87 4.74 Dallas 4.52 4.25 4.34 4.39 4.71 4.68 4.73 4.56 4.40 4.44 4.56 4.58 S a n Francisco 4.47 4.35 4.32 4.60 4.66 4.65 4.59 4.50 4.57 4.51 4.53 4.57 Total... 4.02 4.02 4.08 4.23 4.35 4.42 4.37 4.25 4.24 4.21 4.20 4. IS N O T E . — K a t e s for t h e B o s t o n a n d N e w Y o r k b a n k s a n d for m o n t h l y t o t a l s are c a l c u l a t e d o n a 365-day b a s i s . H a t e s for all o t h e r b a n k s are c a l c u l a t e d on a 360-day basis. No. 30.—Average maturity in days, of all paper discounted by each Federal Reserve Bank, by months, during the calendar year 1918. Federal Reserve Bank. | January. February. March. April. May. June. July. August. September. October. November. Decern- I Average ber. I for y e a r . Boston 33.46 60.82 37.82 27.16 46.89 24.20 19.72 25.23 10.06 15.40 20.59 9.30 New Y o r k . . . 20.75 29.64 21.77 7.22 6.95 4.93 6.77 8.05 6.36 7.06 8.23 5.29 Philadelphia. 20.33 37.65 22.32 16.08 25.14 18.64 17.19 21.32 15.19 18.95 16.53 10.92 Cleveland — 20.88 25.39 26.61 20.61 21.59 22.11 16.16 18.03 16.50 17.62 15.19 13.34 Richmond... 7.36 8.58 6.18 9.12 17.07 15.36 13.15 11.27 8.70 10.45 10.61 9.22 24.31 24.39 25.06 18.83 19.89 20.65 20.42 19. 35 18.87 18.81 18.07 17.42 18.00 Atlanta Chicago 14.79 19.94 30.21 18.63 22.95 20.39 19.02 17.69 17.10 19.01 18.42 S t . Louis 20.77 24.75 24.75 19.83 23.60 24.22 23.42 18.26 18.86 19.42 16.52 16.03 Minneapolis.. 54.76 43.50 54.94 38.01 45.01 37.64 42.51 28.34 34.41 21.33 20.60 22.87 Kansas C i t y . . 23.50 47.71 49.30 33.61 42.11 34.43 33.61 23. 81 24.46 25.28 28.24 23.85 Dallas 34.75 26.03 32.92 24.77 32.33 27.98 34.05 27.50 21.66 22.69 26.86 27.19 S a n Francisco. 44.96 34.44 33.41 31.69 31.70 30.90 29.87 27.26 23.05 19.74 20.69 21.18 Total.., 18.90 22.25 11.25 12.59 10.09 12.85 12. 70 10.38 11.17 12.37 S.54 No. 31.—Acceptances bought in open inarlcet during each, month in 1918; also totals for 1917, 1916, and 1915. May. July. August. September. $8,761,789 $11,967,858 $19,139,739 $19,684,049 39,567,562 62,862,729 91,862,018 7,120,876 5,748,048 3,080,170 2,741,791 845,949 5,854,860 11,152,929 15,287,322 15,932,632 I January. February. March. Boston $8,001,703 $11,723,878 $11,504,087 $8,939,064 $12,437,164 New York 80,010 607 91,970,835 75,850,840 57,952,754 61,379,510 Philadelphia.. 5,167,838 4,153,683 5,570,666 6,822,070 8,434,297 Cleveland 2,883,179 5,623,223 4,713,142 3,564,198 Federal Reserve B a n k . April. June. 115,774,488 | Richmond 9,077,247 5,541,592 7,076,000 9,004,825 5,581,710 4,773,249 5,469,628 6,006,274 3,220,347 Atlanta 3,309,766 2,599,135 4,071,183 3,658,724 1,273,136 2,763,939 1,925,064 1,597,563 4,713,695 Chicago 3,697,161 9,895,400 11,847,190 5,678,115 6,907,295 9,925,473 9,530,265 11,018,502 7,427,475 S t . Louis 1,524,447 3,665,151 4,714,024 1,781,255 1,793,017 760,555 1,021,390 920,225 554,457 75,000 100,000 180,000 130,000 130,000 422,300 40,500 5,334 150,000 250,000 128,848 59,615 Minneapolis... Kansas City.... 11,523 200,000 3,532,502 2,184,406 3,550,000 3,280,000 2,095,000 1,380 000 370,000 714,214 13,403,536 10,837,469 9,849,232 7,584,512 14,786,862 8,541,719 13,266,885 12,688,471 T o t a l , 1918. 130,619,5C9 148,275,106 138,996,364 108,515,517 115,913,940 89,580,022 123,573,644 162,796,413 T o t a l , 1917. 20,617,180 70,640,679 28,152,638 41,312,691 82,544,372 135,229,697 66,864,065 72,122,802 109,046,466 | T o t a l , 1916. 9,603,000 12,416,000 22,918,000 18,499,000 21,912,000 42,325,000 36,575,000 28,447,000 37,087,000 2,666,000 8,356,000 4,018,000 2,865,000 4,701,000 5,986,000 4,656,000 Dallas San Francisco. T o t a l , 1915. 1,580,000 11,462,688 J 183,132,122 4,548,000 I P e r c e n t , 1918 7.2 8.1 7.6 6.0 6.4 4.9 6.8 8.9 10.1 P e r c e n t , 1917 1.9 6.6 2.6 3.8 7.7 12.5 6.2 6.7 10.1 P e r c e n t , 1916 2.5 3.2 5.9 4.8 5.7 11.0 9.5 7.4 9.6 4.1 12.9 6.2 4 4 7.3 9.2 7.2 7.0 ! P e r c e n t , 1915 Per cent. Federal Reserve Bank. November. December. Total, 1917. T o t a l , 1918. T o t a l , 1916. T o t a l , 1915. 1918 1917 1916 1915 Boston $29,634,813 $22,983,966 $194,157,686 $91,528,205 $52,377,000 $14,105,000 10.7 8.5 13.6 21 7 N e w York Philadelphia 100,177,148 62,521,143 945,497,423 464,965,602 123,406,000 25,834,000 52.0 42.9 32.0 39.8 6,893,200 1,335,136 77,686,322 85,913,798 53,122,000 7,565,000 4.3 7.9 13.8 11 7 Cleveland 15,474,755 18,225,626 122,800,420 ! 91,109,193 27,542,000 2,963,000 6.7 S.4 7.1 Richmond 3,630,276 4,296,346 70,765,491 58,116,061 11,313,000 250,000 3.9 5.4 2.9 4 6 4 4,148,098 6,701,928 45,477,368 26,392,564 12,544,000 72,000 2.5 2.4 3.2 15,074,220 9,917,628 122,787,257 66,714,061 27,061,000 5,782,000 7.2 6.2 7.0 S t . Louis Minneapolis 1,448,156 5,536,163 26,096,120 29,732,271 20,681,000 1,801,000 1.4 2. 7 5.4 .1 8 9 9 S 2,700,843 6,208,936 13,902,579 33,072,316 13,539,000 1,455,000 .8 3.1 3.5 2. 2 Kansas Cit}^ 3,413,592 3,468,366 14,690,587 26,825,413 8,191,000 1,788,000 .8 2.5 2.1 2. 8 Dallas San Francisco 2,600,000 1,498,000 25,024,122 35,076,917 3,543,000 1.4 3.2 .9 10,502,411 13,040,200 150,653,420 68,266,108 32,776,000 S.3 6.8 8.5 155,733,438 1,809,538,795 178,069,009 11,077,712,509 66,871,000 386,095,000 Chicago Total, 1918 195,697,512 T o t a l , 1917 186,218,728 T o t a l , 1916 48,547,000 Total, 1915 7,919,000 12,790,000 J Per cent, 1918 10.8 8.6 Per cent, 1917 17.3 16.5 Per cent, 1916 12.5 , 17. .3 Per cent, 1915 12.2 19.7 5.0 64,845,000 100 100 1 ! 1 1 3,230,000 100 100 I Includes $168,411,520 of acceptances purchased from Boston and New York by other Federal Reserve Banks. > U2 No. 32.—Acceptances bought in open market during each month in 1918, distributed by maturities. MATURITIES. Month. W i t h i n 15 days. F r o m 16 to 30 d a y s . F r o m 31 t o 60 d a y s . F r o m 61 t o 90 d a y s . $3,493,387 $77,090,959 91,901,419 3,765,135 .90^*72; 4b8' — 5 7 ^ , 314 66,879,538 3,711,149 63,734,124 2,483,560 39,254,107 583,713 54,430,558 1,608,093 71,027,379 621,160 80,116,518 1,014,590 148,159,381 570,248 51,057,284 376,130 42,115,337 3,951,929 $10,163,396 $10,420,623 $29,451,144 February... 5,714,258 12,642,259 34,252,035 March 1,476,821 11,402,728 29,733,043 April....... 2,882,790 8,551,069 26,490,371 May 7,027,740 10,687,239 25,981,277 June 8,344,335 19,506,550 21,891,317 July 6,546,558 22,259,172 38,729,263 January August 18,486,108 27,840,126 44,821,640 September.. 26,897,127 32,358,684 42,745,203 October 31,045,245 27,066,744 49,863,590 November.. 18,837,937 58,448,954 66,977,207 December.. 24,541,541 29,471,649 55,652,982 161,963,856 276,656,397 128,893,138 466,589,072 876,539,062 267,034,882 613,295,250 63,651 284,002 9,057 52,808 Total Total Total Total 1918. 1917. 1916. 1915. 32,048,198 38,442 2,980 Over 90 days. 27,790,408 36,441,035 T o t a l 1918. $130, 148, 138, 108, 115, 89, 123, 162, 183, 256, 195, 155, 619,509 275,106 996,364 515,517 913,940 580,022 573,644 796,413 132,122 705,208 697,512 733,438 T o t a l 1917. T o t a l 1916. T o t a l 1915 $9,603,000 $20,617,180 70,640,679 28,152,038 41,312,691 82,544,372 12,416,000 $2,666,000 22,918,000 8,356,000 135,229,697 66,864,065 72,122,802 42,325,000 4,701,000 36,575,000 5,9S6,000 28,447,000 4,656,000 109,046,466 86,894,182 18,499,000 4,018,000 21,912,000 2,865,000 37,087,000 4,548,000 40,895,000 6,310,000 186,218,728 48,547,000 7,919,000 178,069,009 66,871,000 • 12,790,000 1,809,538,795 1 1,077,712,509 386,095,000 04,845,000 I 1 I n c l u d e s $168,411,520 of a c c e pta nc e s p u r c h a s e d from B o s t o n a n d N e w Y o r k b y o t h e r F e d e r a l R e s e r v e B a n k s . N o . 33.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1918. CHRONOLOGICAL TABLE. Rediscounted or sold by Federal Reserve Bank oi— Discounted or purchased "by Federal Reserve Bank of— Purchased bills. San Francisco Pallas Do Do. San Francisco Dallas San Francisco Do Do Dallas Philadelphia Chicago Minneapolis Kansas City Cleveland Dallas Cleveland Philadelphia Minneapolis Kansas City Cleveland Chicago _ .' , I Jan. 10 $3,759,977 ! Jan. 14 Jan. 16 Jan. 24 ! . . . do Jan. \ Jan. ! Feb. I Feb. j Feb. I Feb. do do do..... I Feb. 21 | Feb. 26 i Mar. 1 I Mar. 5 2,529,502 do...., 2,555,350 do, 5,037,200 | Mar. 6 5,054,410 Mar. 14 New York. Richmond. Purchased bills. Purchased ! Discounted hills. I bills. $2,000,000 300,000 1, 500,244 908,145 999,954 1,000,000 995,561 631,852 737,968 $5,017,518 1,994,030 1,480, 501 1,467,564 2.494,410 2, 704,151 2,098,148 5,214,143 No. 33.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1918—Continued. CHRONOLOGICAL TABLE—Continued. Rediscounted or sold by Federal Reserve Bank of— Discounted or purchased by Federal Reserve Bank of— Date. New York. Richmond. Chicago. St. Louis. > Minneapolis. Kansas City. Dallas. > Purchased Purchased Discounted Purchased Discounted Discounted [Discounted Purchased Discounted bills. bills. bills. bills. bills. bills. bills. bills. bills. Philadelphia Cleveland.. Chicago Minneapolis Kansas City Atlanta St. Louis Philadelphia Chicago Minneapolis Do.. Philadelphia Boston Philadelphia Cleveland Chicago San Francisco Boston Philadelphia Cleveland Chicago . - .. Mar. ...do ...do ...do ...do Mar. ...do Apr. ...do ...do May May May ...do /..do ...do .. do May ,. . . . . ...do May ...do ...do 26 27 18 i 1 1 7 8 16 29 1 | i i ! i ! ! * ! < > $1,000,000 1,995,000 . 1 | i O ! .1 $1,828,600 2,038,200 1,948,000 2,023,000 2,028,700 5,016,453 1 1 1 1,100,000 990,450 1,009, .500 931,000 978,500 1 1 ! i 1 i ! i 1 i I i ! 1 I i '• i 1 ! i O H O 1 I $3,999,257 3,007,049 1,992,547 17 i 1 $5,029,195 4,996,368 19,103,044 7,534,729 7,511,147 2,514,096 2,526,276 W | < K W o > Cleveland Chicago Cleveland Boston Philadelphia. Cleveland Chicago Boston Cleveland Do New York Do J u n e 11 ' ...do J u n e 15 635,000 ...do 652,719 ...do .770.350 822.777 ...do July ! ;....... . . . . . J 3 4 , 1 6 8 . 0 0 6 |. . . . . . ! 4.3*52.313 L 1.862.0(54 1.934.745 3.924.137 3.439,777 July 5 ; ' ; July 9 ! ! | J u l y 31 | | | \ ! Aug. ...I.......,....1 i \ 2J 1 Aug. 2 Cleveland ...do New York Aug. 3 Boston Aug. 9 New York ...do Philadelphia. Cleveland ...do ; ; ! A u g . 24 | A u g . 27 Philadelphia. ...do ! ; A u g . 13 J Philadelphia. Boston | ! ! J u n e 27 Philadelphia. Do ' ! A u g . 30 | l • | " : i ' 7.500.002 l ^9. 984.139 | : W I 1.999.226 2.928.052 $5,000,000 | 2.498.478 I 7.498,881 ! 1.352.500 3.703,200 ! 1.350,750 | 3,702,000 I > H O 'A 5,000,443 ; 4,999,075 ! 2,000,000 3,000,000 > w > -4 N o . 33.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1918—Continued. CHRONOLOGICAL TABLE—Continued. R e d i s c o u n t e d or sold b y F e d e r a l R e s e r v e R a n k ofD i s c o u n t e d or p u r c h a s e d b y F e d e r a l R e s e r v e H a n k oi— Boston. Date. Discounted bills. Purchased bills. Philadelpliia . Oct. 1 Cleveland ...do... Kansas City Boston ...do .. Oct. 3 . . . New York. Purchased bills. 20,012,723 ...do.... 8,815,110 ...do.... 2,025,237 1 ! j i i ! Chicago Philadelphia ...do Cleveland Do ...do... Philadelphia ...do.... Chicago .. d o . . . Minneapolis ...do j 14 i I O c t . 23 1 15,281,831 5,083,423 6 5,115,575 ...do.... 5,111,724 Nov. $250,000 $1,750,000 200,000 1,800,000 1,000,000 ' 2, 500,000 ! i O c t . 21 Nov. I 1 331,176 ...do $5,000,000 ! I j 1,173,353 i i i : 8 ...do Cleveland i Oct. Richmond Philadelphia i I ...do.... Oct. Discounted D i s c o u n t e d bills. bills. Purchased bi.ls. | 4 ...do.... Philadelphia Discounted bills. Purchased bills. Oct. K a n s a s City Cleveland Cleveland 1 4,973,583 S t . Louis Philadelphia Cleveland Discounted bills. Purchased bills. Dallas. Atlanta. $10,108,157 Chicago. S a n Francisco Richmond. Philadelphia. 1 1 j 1 ' ! 1 ! ! I j i 1,000,000 1,717,500 2,500,000 3,(20,000 i ! i i i | 1 I 1 2 500' (.CO ! !' 2,500,000 2,500,000 j ! I : ' 1 ! . i ] | 2,500,000 Chicago !... do. Minneapolis Cleveland [ 2,500,000 5,000,000 ...do. ...do ! ; ; : N o v . 14 Chicago ...do.... Minneapolis Cleveland ...do.... Minneapolis S a n Francisco ...do.... ...j ! i | 5,C005CCO 20,118.746 X 5,0C0,CC0 5,COO,COO N o v . 15 New York ...do.... Cleveland ...do.... Minneapolis N o v . 20 S a n Francisco Chicago ...do.... Do -| $0,564,409 $3,514,000 10,056,775 > $25,223,947 M O % 647,706 N o v . 21 5,353,000 N o v . 26 5,000,000 Dec. 2 Dec. 3 Dec. 2 10,609, & 5 5,000,000 7,500,000 Dec. 3 Do Dec. 5 $3,040, 880 .do. ...do.... 5,001,000 . Dec. Dec. 10 Minneapolis S t . Louis Chicago D e c . 11 D e c . 12 Do D e c . 13 Minneapolis Dec. 17 Chicago ..do.... > 10,024,077 m w & 2,000,000 6 Do O 5,000,000 Do Minneapolis S t . Louis O •d 10,069,500 j . ..do.... Minneapolis S a n Francisco Minneapolis Chicago s 1,801,066 N o v . 19 ...do.... s 2,500,1X0 2,500,000 N o v . 18 Minneapolis Chicago Chicago j . !$10 022. 209 N o v . 13 New York Do 50,100,201 6,032,000 5,000,000 N3,573 10,016,500 2,500,COO 5,000,000 ..do.... w w > w 5, COO, (!,() 5,000,01.0 | 5,000,000 to N o , 33.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1918—Continued. Rcdiseountec or sold b y F e d e r a l R e s e r v e B a n k of- D i s c o u n t e d or p u r c h a s e d b y F e d e r a l R e s e r v e B a n k of— Boston. Date. i New York. ! D e c . 20 1 D e c . 26 i Dec. 27 Minneapolis Chicago ...do Do D e c . 30 D e c . 31 Do > Atlanta. Dallas. ! > Purchased bills. Purchased Discounted Purchased bills. bills. ! bills. Minneapolis Kansas City Discounted bills. Discounted bills. $5,000,000 So,030,525 ! 1 1 i 1 i 1 $5,000,000 5,COO,000 6,000,000 1 Discounted 1 bills. ! January February March ! i i 1 i i ! 1 New York. Purchased bills. S3,759,977 Purchased bills. $6, 708,343 7,503, 942 15,176,402 56,527,146 April 5,016,453 Philadelphia. Purchased bills. Discounted bills. H ffi W d > ! Boston. o w o Rediscounted or sold by Federal Reserve Bank of— j j W W H 1 $10,015,600 ! MONTHLY RECAPITULATION. 1918. CO o CHRONOLOGICAL TABLE—Continued. Cleveland. i I Richmond. ! i Discounted bills. ! ! 1i ! ' Atlanta. i Purchased bills. I i ! i . i j $9,806, 500 1 ! $9,959,613 8.998.853 5,009,450 Discounted Purchased bills. ! bills. i ! w o w b August September October 11,160,723 3,880,846 7,405,200 2, 703, 250 6,564,409 $10,887, 500 35,422, 500 33,532,000 $450,000 3,514,000 31,946,423 37,116,421 79,842,000 450,000 -'•7, 439,339 November $25,223,947 40.711,299 2,448, 772 December 20,032,100 15,393,518 55,' 196,726 $20,046,235 10,024,077 45,256,047 75,041,256 180,900,721 20,046,235 30,103,061 Total $20,078,984 R e d i s c o u n t e d or sold b y F e d e r a l R e s e r v e B a n k of— 1918. Chicago. St. L o u i s . Minneapolis. K a n s a s City. Purchased bills. Discounted bills. Discounted bills. Discounted bills. S a n Francisco. Dallas. Discounted bills. Purchased bills. Total. Discounted bills. Purchased bills. $10, 468,320 January February March 71,703,608 8,998,853 April May $9,866,500 13,020,903 $5,003,652 24,694,754 3,880,846 10,000, 265 22,500, 274 9, 927, 278 42,329,355 12,687,389 17,500,000 25,000,000 33,500,000 28,387, 500 89,160, 447 107,110,335 47,889,339 80, 614,321 324,049,165 336,590,598 $2, 995,000 $8,530,379 June July $12,500,009 $9,984,139 August September October November December Total $24, 990,877 .* 9, 9S4,139 12,500,009 24, 996, 877 8,530,379 100,931,195 2,995,000 69,803,464 No. 33.—Rediscounts and sales of discounted and purchased paper "between Federal Reserve Banks during calendar year 1918—-Continued. SUMMARY FOR T H E YEAR. (In thousands of dollars.) R e d i ^counted o r sold b y ] federal R e s e r v e B a n k of— D i s c o u n t e d or p u r chased by Federal R e s e r v e B a n k of— Boston. Boston Philadelphia. Cleveland. 4,974 Richmond. Atlanta. 5,000 20,119 Philadelphia 12,927 15,137 19,68S 6,620 Cleveland 40,473 34,619 13,706 8,718 27,371 331 2,514 S3,298 4,551 7,535 Richmond.. Atlanta .'. S t . Louis Minneapolis Kansas City Dallas S a n Francisco 5,037 14,370 Minneapolis. Chicago. S t . L o u i s . 5,426 New York Chicago 20,079 9,984 Kansas City. 2,000 19,898 6,709 13,189 5,000 67,681 50,182 4,999 6,994 66,365 '42,321 17,499 24,044 22,931 137,115 54,199 82,916 331 331 4,168 ! 12,542 8,242 7,158 ! 12,218 13,065 2,000 15,005 4,362 5H, 955 13,551 5, 000 1,468 1,000 • I 180,901 50,149 69,063 | | P u r c h a s e d bills 75,041 ISO, 901 30,103 D i s c o u n t e d bills 45,256 20,046 80,293 9,984 37,116 450 9,984 31,947 79,843 12,5C0 1! i i 1 24,996 24,996 1 8,530 103,925 8,530 loo, r 30 7...T7 12,500 1 31,000 ! 5,000 3,006 120,297 28,500 2,500 ! San Francisco. 2,498 5,000 7,500 Dallas. Discounted bills. 12,499 | Total Purchased bills. Total. New York. 2,995 2,514 2,514 9,nn. a«s 100,077 100 321 9,051 4,551 99.462 25,911 4,500 73,551 25,047 8,242 24,534 19,047 6,000 8,242 22,506 2,028 660,638 336,5G0 1 i 324,048 - i . m un j ' cl States bonds (par value) purchased by Federal Reserve Banks during each month in 1918. • Federal Reserve B* Boston, ' '•( •• January. $1,987,088 New York Philadelphia , $2,030,000 March. April. $155,000 18,000 Cleveland 5, 747, 450 3, 445,000 60,000 1,250 2,350 50 4,305,000 5,556,800 6,943,100 Richmond... Atlanta Chicago St. Louis February. 1,045,000 May. June. $509,525 $2,623,950 14,060,000 9,991,000 $245,000 August. July. $300 $50,000 150 400,000 12,100 5,000 200 25,200 500 2,044,900 206,250 944,000 29,050 15,000 2,450 12,650 91,000 167,000 83,050 ; Minneapolis 2,149,000 K a n s a s Ci ty Dallas 13,100 50,000 S a n Francisco 26,000 T o t a l , 1918 3,693,300 1,586,600 92,000 12,450 10,600 5,650 1,000,000 150 1,000,000 1,141,700 18,366,650 284,650 14,337,638 2,431,390 14,746,700 144,950 9,823,400 3,239,550 15,831,825 13,047 750 8,640,510 2,870,040 52,000 1,241,900 P e r cent, 1918 19.38 13.28 10.60 4.38 3.52 21.40 .06 1.54 .38 2.98 19.93 .18 17. 63 P e r cent, 1917 1.52 22.53 4.69 405,000 50,000 1, 679,300 13,067,400 1,327,650 745,100 25, 850 2,628, 400 8,495,750 2, 494, 450 2,510, 600 3,297,350 13,295,375 6, 717,000 15,831,825 13, 047, 750 1,141, 700 284,650 52,000 1,241,900 18,366,650 3,825,460 T o t a l , 1917 ' 3,S25, 460 Classes of securities p u r c h a s e d each m o n t h : 3 per c e n t bonds 3i per cent b o n d s 1, 094,100 13,243,538 4£ per cent b o n d s T o t a l , 1918 Total, 1917 14,337,638 „ 2,431,390 14,746,700 144,950 9,823,400 8,640,510 3, 239,550 2, 870,040 27 050 1,050,000 41, 700 257, 600 No. 84.—Amounts of United Stoics bonds «par value) purchased by Federal Reserve Banks during each month in 191S—Continued. P e r cent, Federal Reserve Bank. September. October. November. December. Total, 1918. Total, 1917. 1918. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago , St. Louis , Minneapolis Kansas Cit y.... Dallas , San Francisco.. Total, 1918. Total, 1917. Percent, 1918. Percent, 1917. Classes of securities purchased each month 2 per cent bonds 3 per cent bonds 3$ per cent bonds 4 per c e n t b o n d s 4\ p e r cent b o n d s ! $50 1,500 $78,050 50 96,000 1,000 31,750 15,400 10,900 100 25,050 ! 100 10,850 $8,529,063 i SI, 418,116 24,119,000 7,646,600 10,973,050 12,274,250 103,900 4,159,700 3,900 11.53 32.59 11,450 ! 15.05 1,137,500 19, JS2.250 7,924,900 26.33 9.72 94.000 40,985,760 .13 50. 27 1,394.950 2.142.600 93,550 36. *5Q i 1,546,946 21.3W.-S20 .14 105,950 1.187,240 91.950 190. 400 20,830,650 28,200 2.050, 600 1,305,750 T o t a l , 1917. 615,650 8,200 ! 1 OH, 950 35,000 61,000 10,950 8,520,400 29,500 ! 20. 830,650 .13 1.90 15,500 1,290,250 1,305,750 j 190,400 .05 I 2v. 24 '• 103! 93.450 ! 10,900 25,950 93,550 j i 1.546,946 ! 36,850 21,396,420 i Includes Liberty loan bonds sold to individual subscribers on partial-payment plan. 1.74 9.38 14.83 .14 .01 \ ;: 100.00 ! 1:;, 997. 200 \ 1><.-M0 > 4-25,000 7,578.050 44,230,988 21, 732. 275 73,996.313 •l.o -si ." *5, 5*2.610 | i 21,488,0*0 I ; 51.537,316 I 5.10 1.39 .80 650,050 T o t a l , 1918. $800 §1,222,350 1917. 11.51 .04 .12 100.00 .75 1.46 1.71 100. ^0 No. 35.—Amounts cf United, 'states certificates of indebtedness purchased by Federal Reserve Banks during each month in 1918. Boston New Y o r k . . . . Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. Total.... January. February. March. $165,000 1406,870,000 4,039,000 79,000,000 573,000 700,000 13,509,000 $2,250,000 448, 249,000 2,585,000 57, 059,000 25,000 3,080,000 619,000 1330,000 939,130,000 9, 971,000 23,833,500 $232,088,000 7,712,500 9,214,500 5, 521,500 85,537,300 2,205,100 31,703,200 $125,000 178,586,000 107,000 1,024,000 10,000 108,000 719,500 22,854,500 313,000 741,000 1,000,000 32,970,000 1,334,500 1,073,000 3,019,500 2,433,500 69,000 81,000 1,162,50Q 20,043,000 321,326,300 184,425,500 135,000 4,551,000 -1,400,000 2,987,000 j 86,000 | 52,000 511,542,000 518,192,000 August. 1,089,231, September. April. October. May. November. June. $389,799,000 3,943,000 1,032,000 55,000 40,000 July. $19,366,000 55,000 490,000 225,000 17,500 W W O 50,000 1,364,000 122,500 838,500 157,000 415,800,500 21,797,000 ©• December. Total. o hrj H Boston... New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City... Dallas San Francisco.. Total... 270,000 1,741,000 212,000 19,899,500 $1,000,000 200,390,500 2,203,500 10,660,000 499,000 62,000 2,000,000 1,497,000 175,000 75,000 499,000 248,000 85,582,000 "631,044,500 219,309,000 $3,750,000 $29,285,000 20,000 20,000 1,000 10,000 82,500 52,500 750,500 30,221,500 $71,858,000 561,199,500 3,272,000 18,451,000 3,565,000 8,497, 500 1,000,000 2,338,000 3,000,000 0,167,000 2,000,000 2,071,000 170,000 2,844,500 235,000 2,199,500 1,886,000 i Includes $520,000 of one-year Treasury notes. $69,000,000 1,527,083,500 3,840,000 61,847,500 29,500,000 5,059,000 3,000,000 1,000,000 1,505, 500 2,015,000 16,015,000 28,014,500 $76,020,000 5,003,904,500 56,199,000 257,443,000 32,719,000 20,756,100 146,295,060 6,568,000 87,570,500 11,103,000 22,570,500 54,603,500 1,747,880,000 5,776,352,160 w ui m 00 No, 36.-—Amounts of one-year ? per cent certificates of indebtedness purchased by Federal Reserve Banks during each month in 1918 and deposited with 00 the United States Treasurer as security for Federal Reserve bank notes. 1918. August September October November Total Boston. $3,750,000 1,000,000 2,000,000 New York/ ^ j j f 6 1 " j Cleveland. ! $6,000,000 9,000,000 S3.000.000 12.000.000 9,955,000 i 356.000 2.458,000 2,000,000 3,000,000 1,000,000 3,499,000 2,000.000 9,000,000 6,750,000 ! 34,955,000 j 8,855,000 N o . 3 7 . — United States 9.458,000 bonds and one-ytxr Richmond.; Atlanta. i Si, 886,000 499,000 1,500,000 3.SS5,000 Treasury Chicago. | St. Louis. ! 1 j | $1,000,000 i $3,000,000 ; 2,298,000; 6,167,000; 2,000,000 i 1,999,000 3,000,000 5,297,000 14,167,000 Minneapolis. Kansas City. Dallas. San Francisco. Total. $6,000,000 20,000,000 35,217,000 12,495,000 30,995,000 $2,000,000 2,071,000 $1,350,000 82,000,000 SI, 170,000 ! $1.7.10.000 499,000 1,497,000 1,000,000 1,998,000 1,000,000 2,000, COO 1,49*. 000 1,500,000 6,568,000 4,350,000 notes redeemed by the United States Treasury 3.499.000 during 3,17o,000 3,748,000 ihe calendar year 104,707,000 <"1 W w hj o w HI O 191S. W Federal Reserve bank. Boston New Y o r k . . . Philadelphia. Cleveland — Richmond... Atlanta Chicago 3 per cent I 3 per cent 1-year j loanoil91i. Treasury isury | notes. 400.0 .£5f.O >i.u» $1. 52?. 000 4.4*2.000 1.723.000 2.01V, OK* 1.070.000 824.000 1.953,000 T Lomi, Federal Reserve tank. ' §1,528,000 4,592,000 2.123,000 • 4,677,660 . 1,070,000 824,000 4,514,000 St. Louis Minneapolis Kansas City Dallas San Francisco Total. 3 per cent 3 per cent 1-year lean of 191$. Treasury / notes. *1.0«V: 1 .":>?. 2 81,444.000 S10.0C0 vOS.000 Total. 82,524,000 2,009, 180 963,000 705,000 500.000 0.029.840 w o w w C/l' B 3> O NQVSS^—Investment operations of Federal Reserve Banks during 1918, by classes of investments. (Figures are exclusive of rediscounts and sales of discounted and purchased paper between Federal Reserve Banks). Commercial paper discounted. Secured by Government Trade acwar obliga- ceptances. tions. Boston New York Philadelphia. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas San Francisco Total... Acceptances bought in open market.; Bonds. All other. Total. $1,550,310,782 $10,287,131 $199,687,020 $1,760,284, [22,254,444,699 70,676,912 |2,210,416,846 24,535,538, 'l, 504,636,670 5,650,053 323,311,551 1,833,598, 1,060,687,150 24,894,291 300,536,555 1,388,117 1,625,616,690 13,389,109 520,839,572 2,159,845, 631,032,371 11,697,196 287,400,520 930,130, 2,139,330, 599 9,033,011 1,117,486,400 3,265,850, 777,982,270 15,681,201 291,473,783 1,085,137 799, 371 190,166,009 242, 826,420 433,791, 475,659,106 10,400,938 347,460,518 833,520; 447,833,088 2,056, 758 137,787,920 587,677, 679,720,046 12,806,608 248, 914, 683 941,441 Bankers. $192, 068,446 925, 729,971 77, 254,080 117, 517.671 70, 765,491 45, 477,368 122, 761,240 26, 096,120 13, 885,260 14, 656,546 25, 024,122 117, 266,510 33,390,079,891 187,372,575 16,175,481,377 39,752,933,847 1,748,502,825 United States securities. Trade. Total. $2,089,240 $194, 19,767,452 945, 432.242 77, 5,282,749 122, 70, 45, 26,017 122 26; 17,319 13, 34,041 14, 25, |33,386,910 150, 1,809,538,795 2 per cent. 3 per cent. $50,000 400,000 5,000 3i per cent. 4 per cent. 41 per cent. $2,643,900 $4,152,188 $1,732,975 4,601,000 19,468,000 730,000 9,763,350 79,700 37,650 61,250 1,500 50 2,350 3,141,600 16,098,400 242,250 10,950 83,050 1,035,150 7,376,150 8,100 20,100 109,100 50,000 41,950 8,200 7,250 2,035,150 455,000 7,578,050 44,230,988 21,732,275 No, aS.--Investment operations of Federal Reserve Banks during 1918, by classes of investments—Continued. CO U n i t e d S t a t es securities. ! Municipal warrants. T o t a l , 1918. Certificates of indebtedness. Boston.. New Y o r k . . . . Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.... Kansas C i t y . . . City. Total. $76 620 000 5,003.384,500 $85,149,063 ; 5,028,023.500 j 56.199,000 257.443,000 32,719,000 257,546.900 S All o t h e r , j $50,521 $10,000 | 20,756,100 40.238.350 ! 2 146,389,060 \. $50,521 $2,039,591,682 30,509,109,901 10.000 1,978,466,646 1,766,465,316 2,263,333,762 114,644 $300,000 96,090.900 Dallas 11,103,000 22.570.500 22.662. 150 \ San Francisco. 54,603.500 56,654.100 Total.... 5. 775.832.160 5,850,348.473 312,020,076 461,045,246 o w H O 152.229 ' 266.873 1, 016,112, 678 130,197,843 1.000.000 3.536,026,327 632,130,411 1.117,801,374 217,518,606 119,026,868 543,785,279 11.131,200 859,342,349 382,208 SV2. 20$ : > $443,992,608 7,018,633,903 323,225,480 700.000 ! 6.568.000 >. 87,570,500 i T o t a l , 1917. Total. 32,722.900 !. 116,295,060 6.568,000 State. 635,746,546 271,137,854 94,216,141 1.148.748.857 174,175,809 47,414.530,717 10,197,320,845 H W W w 547,373 300,000 862.229 ' 1. 709. 602 i Figures for 1917 includes $213,607,152 of paper discounted f->r or purchased from other Federal Reserve Banks, but exclude purchases of United States certificates of indebtedness. 2 Exclusive of $174,174,000 of United States securities taken under repurchase agreements during January and February and included among discounted bills. w o I No. 89.—Investment operations of Federal Reserve Banks during 1918 and 1917, by months and classes of investments. (Figures are exclusive of rediscounts and sales of discounted and purchased paper between Federal Keserve Bunks.) Acceptances bought in open market. B i l l s d i s c o u n t e d for m e m b e r b a n k s . M o n t h a n d year. July August December Total, 1918 T o t a l , 1917 T o t a l , 1916 T o t a l , 1915 Secured b y G overnmcnt w a r obligations. 2 All other. $378,507,198 $13,998,454 400,036,509 19,217,453 315,115, 700 16,230,557 1,806,668,915 11,120,947 2,523,505,536 13,165,738 2,621,131,790 14,810,953 2, 469,385,266 13, 822,069 3,127,333,303 12, 762,403 4,077,897,180 20,917,189 5,308,281,571 23,519,494 4.601, 248,230 16,190,679 5, 760,968, 693 11,616,643 $475,723,967 343,190,736 423,587,276 354,790,277 456,348,072 501,283,086 860,250,816 622,163,392 586,325,335 572,161,812 537,158,413 442,498,195 33,390,079,891 187,372,579 a 5,884, 160,624 37,771,132 5,212,300 i 6,175,481,377 .. . 1 T r a d e acceptances. 1,958,800 3,092,254,698 202,658,200 159,394, 200 Total. Bankers'. $868,229,619 762,444,698 754,933,533 2,172,580,139 2,993,019,346 3,137,225,829 3,343, 458,151 3,762,259,098 4,685,139,704 5,903,962,877 5,154,597,322 6,215,083,531 $128,117,262 145,681,853 134,447,248 104,522,935 108,749,327 84,955,464 117,991,650 155,016,446 178,887,336 249,326,100 190,939,921 149,867,283 39,752,933,847 1,748,502,825 9,014,186,454 1,046,764,534 369,762,300 207,870,500 64,814,000 161,353, 000 Trade. $2,502,247 2,593,253 4,549,116 3,992,582 7,164,613 4,624,558 5,581,994 7, 779,967 4,244,786 7,379,108 4,757,591 5,866,155 Total. U n i t e d Sta Les b o n d s . 2 per cent. $130,619,509 148,275,106 138,996,364 108,515,517 115,913,9*40 89,580,022 123,573,644 162,796, 413 183,132,122 256,705,208 195,697,512 155,733, 438 61,035,970 1,809,538,795 30,947,975 1,077,712,509 $13,997,200 16,332 700 386,095,000 48,128,100 31,000 64,845,000 11,776,350 3 per cent. 3.1 x>crcent. 4 p e r cent. $405,000 £1,094,100 $13,243,538 1,679,300 13,067,400 1,327,650 745,100 8,495,750 2, 494,450 25,850 2,628,400 2,510,600 3,297,350 50,000 1,050,000 27,050 35,000 100 10, 900 455,000 188,540 3,918,880 3,167,120 7,578,050 45,862,610 Includes $19,940,200 of bankers' acceptances discounted. Includes member banks' collateral notes only, and is exclusive of customers' paper similarly secured, the amount of which, however, was small. 61,000 15,500 44,230,988 21,488,966 4,403,200 770,000 No. 39.—Investment operations of Federal ReserveBanis . during 1918 and 1917, fr / months and classes ofinvestments—-Continued. United United States Total States certificates of U n i t e d States bonds, securities. i n d e b t e d n e s s . 41 p e r cent. M o n t h a n d year. January February March $511,542,000 $525,879,638 518,192,000 532,938,700 1,089,231,860 1,099,055,260 321,326,300 324,565,850 April May $13,295,375 184,425,500 200,257,325 6,717,000 415,800,500 428,848,250 41, 700 21,797,000 22,938,700 257,600 30,221, 500 10,950 T 3tal i n v e s t m e n t o p e r a t i o n s . Municipal w a r r a n t s . City. State. All other. $300,000 $236,963 135,049 32,278 32,270 $719,000 Total. T o t a l , 1918. $1,255,963 .$1,525,984,729 T o t a l , 1917. T o t a l , 1916. T o t a l , 1915. $49,105,356 537,150,980 99,502,895 40,028,950 S23 450 300 06,495,153 50,981,150 2,605, 719, 776 95, 738,81S 50,801,300 20 345 M)0 26 834 900 17 838 9)0 3,309,207,111 174,128, 766 1,500 136,549 1, 443, 795, 0.".3 . 62,625 94,903 1,993,080,060 26,000 58, 270 10,500 16,500 48,199,800 20 242 500 4,500 9,573 3,655,663,674 887,502,360 00, 785,340 23 179 300 10,000 67,121 3,490,037,616 547,434,069 04,354,450 27 048 000 30,506,150 5,073 51,121 45, (\So 4,591 50,276 3,955,611,937 297,023,452 47, 902,200 29 375 0(X) 85,582,000 85,688,950 3,631 5,133 8, 764 4,953,969,540 678,062,976 58,679,500 23.556,300 1,290,250 631,044,500 632,350,250 300 300 6, 793,018,635 2,770,806,092 63, 282, ItiO 23 901,000 November 93,450 219,309,000 219,402,550 6,080 11,383 5,569,708,767 3,394,416,518 79,644,600 38,178 700 December 25,950 8,118,733,819 1,137,104,390 139,531,250 June. July August September October T o t a l , 1918 21,732,275 T o t a l , 1917 T o t a l , 1916 T o t a l , 1915 1,747,880,000 1,747,916,850 1 5,776,352,160 5,850,348,473 2 7,063,000 88,600,316 2 300,000 ! 1 5,303 56, 750,180 547,373 300,000 862,229 15,769, 759 263,059 788, 748 10,821,566 85,662,400 4,087,100 936,500 90, 686, 000 15,713,470 1,709,602 47,414,530,717 | 741,401,680 65,859,300 | ! 1 Includes $520,000 of 1-year Treasury notes. 2 1-year Treasury notes. 3 Includes $213,607,152 of bills discounted for or purchased from other Federal Pweserve Bunks but excludes purchases of certificates of indebtedness. 33,760,100 i 307,770,800 N o . 4 0 . — Total investment operations of Federal Reserve Banks during each month of WIS. ("Figures a r e exclusive of rediscounts a n d sales of d i s c o u n t e d a n d p u r c h a s e d p a p e r b e t w e e n F e d e r a l R e s e r v e B a n k s . ) Federal Reserve R a n k s . January. Boston $34, 672.991 New York 786, 021, 686 Philadelphia.. 51, 165,270 Cleveland 133, 205, 720 Richmond 138, 591, 928 Atlanta 22, 549,478 Chicago 218, 398,031 39, 721,655 S t . Louis Minneapolis... 747,060 KarfsasCity... 44, 769,907 12, 386.992 36, 754,011 Dallas San Francisco. Total, Total, Total, Total, 1,525,984, 729 49,105,350 37,150.980 23,450,300 1918... 19171. 1910... 1915... Federal Reserve Banks February. $76, 830,912 808. 039,215 42, 052,051 110. 832,074 126; 376,985 22: ,425,412 138, ,201,608 34. 016,112 March. April. May. June. $41,805,408 $39,433,018 $67, 247, 803 $64,062, 609 1,336,322,932 ,435,168,861 !, 730,042, 467 46,003,593 1,750,722,071 57,162,158 80,508,191 104,289, 787 74,032, 730 103,058, 479 77,234,301 60,006,218 158,462,635 194,060,878 133,806,799 132,295,727 33,596,588 41, 835,527 48,223,999 54,178,721 132,755,063 157,239,495 172,133,229 191,618,864 July. $155. 684. 7-: 3 2,017. 371,038 140, 269,124 146; 472,056 168; 879,372 64, 873,511 388; 856,725 106; 057,277 45,217,434 26,887,172 64,774,142 51,803,752 61,347,269 95,385,131 !4; ,008,540 21. 669,881 12. 652,185 32,237,642 61,886,266 32,366,838 56,353,687 95,988,964 63,504,383 24, 745,932 40,723,522 39,427,035 45,453,965 36 ,690,078 40,883,735 48,553,047 65,883,018 52,939,476 52 244,194 104 902, 2."8 3,309,207,111 174,128,766 48,199,800 20,242,500 3,655,663,674 887,502,360 GO,785,340 23,179,300 3,490,037,016 547, 434,009 64,354, 450 27,048,000 November. December. $373,350, 564 $456,202,416 5,508,007,483 $2,039, 591,682 30,509,109,901 516,200,472 339,369,955 1,978,466, G4u 1, 766,465,316 172,763,597 2,263, 333,762 1,016,112,678 1,443, 795,053 99,502,895 40,028,950 20,345,800 August. 1,993,080,060 66,495,153 50,981,150 26,834,900 September. j 2,605,719,776 J 95, 738,818 ! 50,861,300 \ 17,838,900 October. 61 044,132 83 383.186 Total. $142,88)0, 762 $249,026,303 2,427,233,SSH 150,366,382 3,081,248,564 $338,394,033 4,380,072,963 167,232,191 254,394,243 3,248,358,733 368,823,184 Cleveland 146,589,352 160,066,781 189,488,962 226,108,688 Richmond... 174,826,575 218,416,000 123,787,635 230,835,278 179,821,536 287,101,541 167,886,039 383,127,310 299,680,044 296,880,658 3,536,026,327 158,469,909 140,181,080 17,623,363 1,117,801,374 543, 785,279 86,837, 955 859,342,349 Boston New Y o r k . . . Philadelphia. Atlanta 84,170,635 Chicago 416,849,317 92,879,874 466,437,999 120,403,692 573,528,028 159,347,799 Minneapolis.. 87,403,974 Kansas City.. 58,860,158 77,127, 901 78,861,372 65,136,063 126,621,271 S t . Louis 40,879,414 110,124, 747 No. 40. Total investment operations of Federal Reserve Banks during each month of I Federal Reserve Banks August. Dallas San F r a n c i s c o . Total, Total, Total, Total, 1918... 19171.. 1916... 1915... 1918—Continued. November. October. September. December. Total. $69,044,935 104,500,085 $76,531,393 $89,433, 580 $77,998,599 $95,104,214 134,829,649 205,944,879 126,980,039 189,882,582 ,955,611,937 297,023,452 47,902,200 29,375,000 4,953,969,540 678,062,976 58,679,500 23,556,300 0, 793,018,635 2,770,806,092 63,282,160 23,961,000 5,569,708,767 3,394,410,518 79,644,600 38,178,700 8,118, 733, 819 47,414,530,717 1,137,104,390 * 10,197,320,845 741,401,680 307,770,800 139,531,250 33,760,100 $LV35, 746,546 1,148, 748,857 No. 41.—Average amount of earning assets held by each Federal Reserve Bank during 1918. earnings from each class of earning assets, and annual rales of earnings. A v e r a g e b a l a n c e s for t h e y e a r of t h e s e v e r a l classes of e a r n i n g a s s e t s . Federal Reserve Banks. Boston New York Billsdiscounted Bills b o u g h t for m e m b e r s in open marand Federal ket. Reserve Banks.) Richmond Atlanta Chicago S t . Louis Minneapolis.. Kansas C i t y . . Dallas L $102,280,801 $3,068,027 $931,701 133, 095, 779 $69,761 622,631,646 17,736,261 5,411,821 556,041 18, 375,123 175,073 1,068 101,067,237 3,241,105 756,313 117,976,652 3,124,696 1,141,584 73; 080,025 54; 299, 950 41. 159,081 150; 018,487 410,716 G4,103,004 2,390,422 273,634 199,908 (J8, 795 52,173,482 1, 758,075 302,231 574,709 13,699 191,167,183 6,447,466 1,253,259 60, 789,493 2,218,069 226,104 42,128,848 1,547,842 211,602 71,509,299 2,643,113 157,962 42,609,374 1,497,379 175,885 88,621,471 2,671,397 1,097, 030 1,557.058,490 48,343,852 11,939,786 51; 755,325 33; 463,611 406,798 55; 732,674 32. 083,680 707,610 288, 783 413,505 119,331 1,140,053,148 288, 422,390 1917 figures arc e x c l u s i v e of p u r c h a s e s of certificates of i n d e b t e d n e s s . B i l l s disc o u n t e d for Bills b o u g h t m e m b e r s a n d i n open marFederal Reket. serve B a n k s . $22, 217,329 San Francisco. Total. Total. $76, 415,140 075,629 Philadelphia. Cleveland U n i t e d S t a t e s M u n i c i p a l warsecurities. rants. Earnings from- 2 851,231 139 197,168 128,232,322 350,030 I Includes $213,607,152, bills d i s c o u n t e d for or p u r c h a s e d from o t h e r F e d e r a l R e s e r v e B a n k s . Earnings from- © o Federal Reserve Banks. United States securities. GO Municipal warrants. Calculated annual rates of earnings from- Total. Bills d i s Bills c o u n t e d for bought in members and Federal open marReserve ket. Banks. Per i Boston co New York Philadelphia Cleveland Richmond ...! j | Total $2,621 233,489 49 611,894 | 83,437 | | j j I I 114,451 310,616 89,096 116,370 312,463 152,159 135,268 2,889 662 ! 3,828,801 14,222 Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco $107,719 1,561,839 6 7,995 $4,107,447 24,712,542 4,230,956 4,878,174 2,747,493 2,177,646 8,012,003 2,533,329 1,875,820 3,113,538 1,833,418 3,904,295 cent. 4.01 4.04 4.29 4.28 4.40 4.27 4.30 4.29 4.63 4.74 4.67 4.65 64,126,661 % 4.24 Per cent. 4.19 4.07 4.12 4.20 4.27 4.20 4.24 4.18 4.36 4.26 4.10 4.20 4.14 United S t a t e s securities. Municipal warrants. Total. 5 2 Per cent. 2.95 3.10 3.27 3.45 2.46 3.06 2.69 2.46 3.05 2.59 2.52 2.66 2.99 Per cent. 3.76 4.59 Per cent. 4.02 3.97 o 4.19 4.14 4.29 > 4.20 4.83 4.17 4.19 4.17 3 4.47 4.45 o 4.35 4.05 4.30 4.41 4.06 4.12 u > i w !> w w. CO No. 42.—Calculated annual rate (per cent) of earnings from total investment holdings for each Federal"ReserveBaiih, by months, during the calendar year WIS. January. February. March. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. 3.63 3.77 3.68 3. 7i 3.84 3.98 4.08 4.04 3.70 3.70 3.96 3.77 3.67 3.85 3.86 3.71 3.89 3.94 4.08 4.17 3.84 3.41 4.06 3.81 3.89 3.92 3.89 4.01 3.97 3.59 3.90 4.31 3.26 3.75 4.01 3.85 3.99 4.05 4.06 4.08 4.04 4.14 4.01 4.19 4.23 3.93 4.12 4.19 4.05 4.07 4.21 4.28 4.14 4.23 4.24 4.53 4.15 4.36 4.26 3.95 4.06 4.20 4.27 4.59 4.20 4.28 4.19 4.48 4.41 4.16 4.42 Total.... 3.75 3.81 3.86 4.07 4.29 4.20 April. May. J August. September. October. November. December. 4.34 4.13 4.27 4.31 4.55 4.27 4.30 4.33 4.68 4.74 4.44 4.40 4.24 4.16 4.20 4.36 4.46 4.25 4.29 4.33 4.64 4.65 4.54 4.43 4.23 3.95 4.32 4.30 4.48 4.24 4.28 4.27 4.64 4.59 4.70 4.50 4.18 4.01 4.31 4.15 4.46 4.23 4.15 4.22 4.66 4.51 4.25 4.51 4.09 4.05 4.34 4.11 4.37 4.21 4.21 4.18 4.22 4.43 4.42 4.41 4.05 4.00 4.17 4.09 4.22 4.19 4.25 4.10 4.12 4.51 4.57 4.37 4.02 3.97 4.19 4.14 4.29 4.17 4.19 4.17 4.45 4.35 4.30 4.41 4.31 4.27 4.21 4.13 4.19 4.14 4.12 July. Total. Exhibit E.—GOLD SETTLEMENT FUND. No. 48.—Condensed summary of transactions, Jan. 1 to Dec. 31. 1918, both inclusive. [In t h o u s a n d s of dollars.] F e d e r a l R e s e r v e B a n k of— Balance J a n . l, 1918. Gold withdrawals, Aggregate Aggregate withd r a w a l s deposits and Gold and deposits. transfers transfers from to agent's agent's fund. fund. Boston 14,977 154 52,162 42,654 New Y o r k . . 20,S54 13,020 195,058 154,020 LTuladelphia 39,101 8,875 77,254 1(14, 036 Cleveland... 37, 664 33,871 50, 153 151,871 Richmond.. 22,101 9,435 25,759 00,430 Atlanta 13,007 950 21,050 105,500 48,319 7,941 103,140 561,078 St. L o u i s . . . . .17,SS4 14,098 12,435 97,978 Minneapolis., 20 ; 487 138 16, 752 58,138 Kansas C i t y . . 37,087 2,911 20, 666 51,410 Chicago Dallas 24,521 8,352 15,991 33,561 S a n Francisco 15,(142 2,088 90,700 133,448 Total... 311,044 102,43. Transfers. 'Debit. 72, ,067 331, 058 193, ,987 119, 159 38, 759 115, 400 493, 402 62, 361 43, 952 06r> 43, 090 138, 111 Credit. 182, Net debits. 144,021 769, 333, 509, 150, 108, 152, 94, 209, 551, 198, 551, 3,308,697 2,070,339 Total debits. 734, Net credits 31,784 Balance i n fund at close of business Dec. 31, 1918. S u m m a r y of changes in owners h i p of gold b y banks through transfers a n d settlements. ! Decrease. Increase. 37,295 7,097 66,790 131,102 178,969 37,412 31,041 4, 234. 506,347 52,125 2,401, 73 2°6 14,254 1,439. 4,289 6,302 12,837 945, 5,124 50,792 728, 90,934 327, 87,680 435, 123,297 .......... 13,829 16 005 754, 6,403, 649,693 106,772 126,129 45,421 863, 2,945, 82,426 15,974 33,708 17,487 288, 1,497, 209,438 23,774 2,277, 523,879 23,237 16,105 85,000 21S, 722 910,: ,190, 17 474 997, 86,759 6,935 27,114 1,513, ,323,529 11,056 9,250 2,670,339 401,926 238,314 45,439,487 I 45,439,48 a o F O 4V, 171 628,685 11,369 I Total credits .•507, 693,1^1 ;1,614,730 1,705,012 4,812.105 ,4,812,105 i S e t t l e m e n t s from J a n . 1 to Dec b o t h inclusive. 2:.-:8,314 H No. 44.— Weekly operations through the gold settlement fund during the calendar year 1918. [ I n t h o u s a n d s of dollars.] T r a n s a c t i o n s , all F e d e r a l R e s e r v e Banks. Date. Total clearings. Total transfers. Total combined transfers and clearings. T r a n s a c t i o n s , F e d e r a l R e s e r v e B a n k of N e w Y o r k . Total debits in Transfers for c r e d i t of] clearings of t h e New York New York bank. bank. Combined debits in clearings and transfers for c r e d i t of the New York bank Clearings. Net debit. ; Clearings a n d transfers ! combined. Transfers. N e t credit. \ N e t d e b i t . > N e t credit. Net debit, O 536,945 •36,400 573,345 2,000 J a n . 10 690,242 63,500 753,742 J a n . 17 723,635 72,500 796,135 819,561 97,000 , > N e t credit. 1918, Jan.3 J a n . 24 cj 160,147 162,147 41,000 203,297 244,297 22,000 251,710 273,710 916,561 74,000 271,157 345,157 642,158 96,140 738,298 56,000 208,438 264,438 24,217 602,539 107,000 709,539 76,000 207,878 283,878 42,264 Feb.14 551,908 112,362 664,270 101,000 201,467 302,467 79,030 F e b . 21 710,081 64,400 774,481 32,500 240,142 272,642 54,123 24,000 183,098 207,098 31,494 55,000 253,017 308,017 39,903 F e b . 28 587,027 35,000 771,168 85,000 856,168 Mar. 14 661,936 11,330 673,266 Mar.2l 696,825 37,000 733,825 16,000 40,330 43,837 1,422 Feb.7 Mar. 7 39,652 13,337 24,330 J a n . 31 622,027 23,900 221,385 221,385 73,991 34,000 213,710 247,710 14,395 51. 16. 46 98, 8. 20 32 4,000 3 52,422 8,217 3,736 18,970 w o H > 46,123 F 11,494 W H 7,403 77,991 31, 16,605 W W Mar. 28 788,912 77,463 866,375 70,000 260,840 3'30,840 42,258 65 ; 22,742 Apr. 4 733,068 73,000 806,068 64,000 248,987 312,187 25,278 55 ; 29,722 A p r . 11 694,860 37,500 732,360 33,5C0 230,079 263,579 38,022 29, w w o > A p r . 18 811,089 169,900 980,989 130,500 282,915 413,415 59,528 93 33,972 897,166 75,000 972,166 56,000 306,703 362,703 55,749 © A p r . 25 44 May 2 769,773 136,000 905,773 105,000 246,172 351,172 43,090 80 8,522 11,249 36.910 May 9 819,746 81,600 901,346 48,000 288,846 336,846 63,589 17. 46,189 Mayl6 855,420 150,700 1,006,120 88,000 299,908 387,908 60,461 50 10,161 May 23 May 31 June 6 June 13 June20 June 27 July3 July 11 July 18 July 2,5 Aug.l Aug. 8 Aug. 1 5 . . . . Aug. 22 Aug. 29 Sept. 5 Sept. 12.... Sept. 19.... Sept. 26.... Oct.3 Oct. 10 Oct. 17 Oct. 24 Oct.31 Nov. 7 Nov. 1 4 . . . . Nov. 2 1 . . . . Nov. 29 Dec. 5 Dec. 12 Dec. 19 Dec. 26 Total J 22,000 811 721 69,SCO 881,521 38,000 246,964 284,964 746 483 711,493 72,OCO 818,483 43,000 248,267 291,267 131,000 842 493 89,000 228,883 317,883 47,000 34,382 824 499 83,000 907,499 40,000 254,463 294,463 10,324 3,000 944,258 196,000 1,140,258 97,000 304,608 401,608 8,213 19,000 13,324 27,213 14,753 76,279 13,618 22,000 18,000 ' 898,469 114,400 1,012,869 60,000 290,582 350,582 1,090,900 251,679 1,342,579 180,665 382,271 562,936 743,803 25,000 768,803 8,000 271,236 279,236 990,740 944,335 838,707 114,000 1,109,740 95,000 313,980 408,980 77,000 112 306 80,000 1,024,335 65,000 317,305 382,305 31,648 50,000 97,000 935,707 93,000 273,774 366,774 39,371 89,000 18 £52 49,629 28,472 22,372 73,839 10,472 119,005 35,306 96,633 77,839 4,000 812,164 15,000 827,164 15,000 300,421 315,421 106,173 15,000 806,193 55,056 861,249 35,000 278,269 313,269 84,488 35,000 853,803 894,369 21,000 874,803 17,000 290,989 307,989 83,814 17,000 47,000 941,369 35,000 302,765 337,765 81,709 35,000 787,282 79,000 866,282 74,000 259,372 333,372 11,027 74,000 852,452 959,528 35,162 887,614 35,000 327,732 362,732 122,834 35,000 87,834 59,000 91,173 49,488 66,814 46,709 62,973 1,018,528 53,000 321,911 374,911 55,333 53,000 2,333 953,752 1,028,560 28,000 981,752 28,000 302,447 330,447 36,374 28,000 8,374 46,404 1,074,964 41,904 327,050 368,954 4,958 41,904 1,049,820 50,960 1,100,780 39,000 369,355 408,355 41,110 39,000 36,946 2,110 33,603 994,260 23,000 1,017,260 19,000 344,135 363,135 52,603 19,000 ! 1,208,208 56,588 1,264,796 49,000 395,147 444,147 25,012 49,000 1,263,293 73,667 1,336,960 58,000 442,451 500,451 58,489 58,000 1,011,226 92,303 1,103,529 45,000 344,249 389,249 21,661 955,719 93,743 1,049,462 18,583 319,087 337,670 3,148 1,100,780 1,160,334 226,058 1,326,838 89,861 405,420 495,281 117,411 79,861 144,741 1,305,075 99,631 426,856 526,487 119,072 99,631 19,441 930,853 1,044,159 127,103 1,057,956 76,171 348,230 424,401 107,731 76,171 31,560 287,468 1,331,627 234,698 401,266 635,964 133,922 234,698 1,082,467 165,188 1,247,655 119,863 391,869 511,732 100,862 119,863 944,679 64,651 1,009,330 54,352 374,494 428,846 156,052 54,352 101,700 44,608,368 4,643,766 49,252,134 3.158,228 15,185,744 18,343,972 2,611,609 2,442,685 1,043,664 7,247 54,279 23,988 489 45,000 11,417 68,602 59,317 23,339 14,565 37,550 100,776 19,001 884,025 198 ANNUAL REPORT OE THE FEDERAL RESERVE BOARD. „ & OPERATION 5 THROUGH GOLD SETTLt'MENT FUND DURING THE CALLZHDAR YEAR 1918. | || L i SH j 3 Q 1 & I X I s j ^j Curve!.- &e&i£s inSetdemenb <j/V&£ Jl£»> J^Mr J?t)?. J5U*&fo (Mrvc2.'Cbntbuted^cfftires Jhvnsfisrsibr (redd? cffhoflhdi^ijpSs^Umentand ^ T r t f J.- WteOyJabalSi Curve4. CbmbOt&lfteefettfJ aunsafSetf£em&rf&. and/lTiter-ZBc ^ 1 u vnJCMmsfers. | Y\I5Q0\ M i/OTiH l i^ii Mill " ri1 1 pG7r I u j1 1 1' 1' \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ III 1M 1 • - 1 M 1 1 1 1 1 1 /• M N r« . 1 j' l i/i Iff m \\i t ni mill I \i M M fjffWTll 19 JHI i 1 A I ft ?/MM • ///nil 1 r 1 ttlMlmfnl In n! 1V)\ \\\\\\IM Fw f \M M /ffiUI f F^l 1 i N *m¥ M \ \ \ n \ m\ 11 1 r^Jl >+/ 1 j 1 1 j I I 1 1 1 || 1 J j 1 1 j 1 1 1 1 1 II 1 \\HQO\ 1 11I 11[ f 1I 1(j I 11 ] 1 I I I 11 1 1 • l/JW/- j j 1 j 1 1 [ 1 1 i j 1 j 1 1 1 1 1 1 1 | 1 1 1 j 1 II Hi M i l , 1 H 19 M 1 /^t7 | ~ 11 5 1 | 1 I § !i H«: 1 \ ! V M I I I 1 i L J 1 1 1 1 1 1 1 1 1 If M 1 1 VIM /M I1/ IOT?!! 1 \ / * thi Br 11 Imrf 11 HI MMt itHM'rti 1 MllWfiIB'If 1wWlV/ I UiiffliM | 1 f^^li wmli M ^ M I M fl tiffl 1B1! wT 1/f IJ «%41™ m 1 | j M J 1 1 1 I 1 M 1 II 1 1 1 M 1 1 1 M r SllliI ILJ1 Mi pw\m Infi H/f IN i1 1 i M M \l 11 1 II <rvA i 8 1 La i //V M T I 1 1 1 1 1 1 I 1 1 1 1 I 1 I 1I1 1 I M M M M Lm 11 1 T ! •I[/yy}| |XC/j 1 M 1 M 1 1 1 a 1 1,1 I 1Ml fefl i ? M 1 1 i i 1 i 'JM 11 1 l/\ i i J^YJlfl A f • NmlIISI I 1 1 [ I I I 1 I I 1 1 1 F)!i li/iVM M /|l j * I 1T i l7 I ft VI*\\\M (fln iI!H i v1 1 is M \ \ \ k \IJ iffrv?!! 1 I " IM'HIT ITkm\\\[\\\M\\Mm \\ 1 \VY) A 1 i H ' 1 MTJ U l U wiWrnii MT I IMMUI WM \ y ^ n \ / T 1 P^U I /too i R • ' 1J lywlilawttlff MwfrffTi ms 1 \2O0\ w rrf w I /cC/j ' } , wJU\E \//Y) I i M 1 M 1 1 1 i 1 1 r II 1 1 1 1 1 II II 1 II r I1 tf 1 3M7M3l7#2l£8?#2I284lll*Xt3JeS33l6£!2O0 II 1 1 1 1 1 1 1 1 1 1 Ztjtyf^M.W&sf~J,¥71&'&fJJ/S^£lfJ-fri*M^ 1 1 1 1 1 II 1 \\ \JULY\AUG.\<SEPT. 1 JAM. 1 t*£B.\Mai. 1 /f/frKl MArUuhs ! C?Cr 1 NOVA DEC. 1 IE N o . 45.—Gold settlement fund—Changes in ownership of gold through transfers and settlements by weeks. [In thousands of dollars; i. e., 000's omitted.J Boston. New Fork. Philadelphia. Cleveland. Richmond. Chic ago. Atlanta. Week ending. I n c r e a s e . Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease. Increase. •n Increase. Decrease. Decrease. Increase. Decrease I 1918 Jan. 11,471 2 and 3 10 14,278 17 12,641 24 31 Feb. . .... S. 10 23 370 920 8,009 6,868 6,715 2,206 10,869 19,004 36,910 2,434 1,538 2, 644 54,279 33,382 13,324 27,213 27,245 2,908 6,307 8,961 6,446 10,472 7,460 4,971 3,108 6,167 2,522 2,911 fc 1,081 2,220 9,87-1 37,494 15,443 7,527 11,395 2,553 4,023 22,664 9,034 1,102 38,329 5.916 3,668 4, 968 29,101 5,023 3,716 600 7,960 2,723 4, 90S 6,709 2,081 3,661 6,606 11,716 6,960 1,953 1,1»\8 3,344 5,548 3,715 6, 152 4,468 5,862 351 4,212 16,217 24,097 402 16,254 40,862 3,500 6,316 2,194 5,008 5,161 9,098 24,858 2 ? 348 1,250 3,910 1,020 10,604 3,349 17,819 1,141 8,921 12,559 9,682 7,247 2,593 3,834 14,39 6 5,009 . 11,830 269 3,616 1,006 2,106 2,837 8,982 1,899 3,597 3,062 3,379 15,697 363 22,705 5,853 2,704 833 3,831 46,189 10,161 7,105 620 1,313 ! 10,533 5,367 333 3,354 11,249 7,635 2,513 . . . 3,629 8,522 5,958 . 41,366 4,974 33,972 10,314 ... 4,156 14,158 16,605 22,742 29,722 5,402 10,614 1,915 u8,988 10,523 40,123 11,494 7,403 77,991 373 642 2 0 . . . . . ... . . . . 27 3,736 18,231 25 2 31. . . 6 .. . . 13..... . . . 18,970 2,14S 13. June 19,334 8,217 7,538 7 14 21 23 Apr. 4 . . . . 11 May 52,422 10,134 28 Mar. 4,135 12,750 23,801 10,586 40,330 12,066 7., U 21 7,664 34,252 43,837 20,319 1,965 1,402 2,900 3, 447 16,286 2,212 25,033 No. 45.—Gold settlement fund—Changes in ownership of goldthrough transfer and settlements by -weeks—Continued. o [In thousands of dollars; i. e. , 000"s omitted.] New York. Boston. Philadelphia. Cleveland. Kichmond. Atlanta. Chicago. Week ending. Increase. Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease. July Aug. Sept Oct. Nov Bee 1918 5 11 18 25 1 8 15 22 29 .... 5 12 19 26 3 10 . . 17 24 31 7 14 21 29 5 12 . 19 4,043 4,634 20,071 7,025 . . 9,543 17,669 4,165 9,482 575 77,839 112,306 18,352 49,629 1,921 1,404 10,779 7,712 3,657 14,335 651 7,671 2,110 33,603 2,415 7,049 47,015 489 23,339 10,129 3,020 8,614 14,565 37,550 19,441 31,560 11,927 11,255 9,063 14,875 1,447 18,266 23,106 1,641 8,662 13,812 3,736 22,432 20,468 8,611 5,758 6,266 6,550 17,091 3,950 101,700 710 17,951 26,032 11,587 30,628 2,368 5,853 1,451 5,720 3,360 42,217 9,554 20,047 43,705 4,498 14,915 18,665 9,223 24,304 4,783 1,300 1,747 5,015 56 13,504 2,845 6,423 11,071 3,062 6,388 11,096 5,385 22,512 13,842 14,191 2,870# 23 774 2,171 5,962 2,613 4,552 3,349 5,926 18,369 20,053 2,646 2,111 6,493 1,575 10,912 6,518 100,776 19,001 3,942 1,420 13,502 4,289 3,635 18,794 8,234 4,951 36,946 4,349 3,386 8,010 1,495 13,400 8,262 8,956 23,988 28,041 26,677 1,077 5,665 3,818 5,525 1,431 1,379 87,834 2,333 8,374 23,834 9,461 5,574 249 62,973 7,944 4,738 3,983 5,654 9,111 1,327 4,831 91,173 49,483 66,814 46,709 14,512 5,877 214 96,633 19 11,043 11,512 6,448 3,514 14,581 3,609 8,789 1,146 5,857 1,419 3,025 5,549 627 2,507 340 657 7,200 41,070 62,945 4,617 11,055 56,507 17,270 21,353 .... . 4,686 ' 27,28,30,31 229,718 Total 1 23,132 907,157 1,038,259 236,815 184,320 14,980 10,707 215,301 357,288 310,114 47,174 7,097 129,878 143,707 100,080 83,475 18,158 490,002 30o 873 120,129 13,829 10,005 ' 31,041 131,102 St. L o u i s . 5,491 ' 2,902 ! ! Minneapolis. K a n s a s City. S a n Francisco, Dallas. Total. Week ending. Increase. Decrease. Increase. Decrease, Increase. Decrease. I n c r e a s e . Decrease. Increase.} Decrease.! Increase. 1918 Jan. 2 a n d 3. 3,428 10 1,855 17 3,151 24 2,180 31 F e b . 7. 14. 8,782 184 3,715 1,238 4,372 23. Mar. 14. 28. 4. 11. 18. 25. May i 31 3,336 10,149 1,396 i 214 1,710 17,763 I 752 2, 485 20,851 4,682 14,277 2, 253 1,322 3,923 2,844 8,561 4,259 5,687 j 2,606 4,018 2,369 4,752 2,548 589 6,575 2,439 1,259 |. 6,284 700 4,010 3,027 11,473 4,283 6,412 1,952 2, 444 5,570 10,201 1,861 2,641 7,130 4,260 308 I 3,617 j 3,031 175 11,050 6,925 I 2,929 1,187 0,821 3,365 1,996 1,000 3,294 6,915 | 4,871 4,914 | 10,371 4,174 ' 9,155 ! 2,472 j 4,776 2,409 J 22.670 10 23 1,414 4,361 160 2,284 1,313 289 1,036 3,705 5,905 2,200 5,971 4,051 2,140 21. 9 4,742 196 3,607 21. Apr. 2,290 1,561 1,736 1,052 13,925 4,514 531 1,104 2,804 ! ! 1,247 j ',006 V 452 ., 135 699 702 900 769 659 191 950 953 776 055 409 258 850 102 834 370 159 837 836 N o . 45.—Gold settlement fund—Changes in oivnership of gold through transfer and settlements by iceelcs—Continued. [In thousands of dollars; i. e., 000's omitted.] St. Louis. Minneapolis. K a n s a s City. San Francisco. Dallas. '• Total. Week e n d i n g . Increase. Decrease. Increase. Decrease. Increase, Decrease. Increase, Decrease. Increase. ,Decrease. Increase. Decrease. 1918 June C 12,989 5,041 13 20 10,556 27 July 22,055 17,570 18 Aug. 13,530 14,738 422 7,707 13,902 5,258 1,343 1,067 8 8,903 1,925 5,925 5,244 15 8,370 4,701 3,888 1,007 22 29 6,289 3,190 1 17 .....,_.,, 29 4,917 7,323 3,863 333 9,495 16,559 18,501 14,621 1,353 1,227 7,777 Q 006 9,478 8,033 ! 7,377 2,892 27,285 7,146 03,088 279 168 94,251 49,500 7,696 72,874 10.586 3,833 2,822 2,804 7,585 3,301 7,352 35,257 40,070 4,737 46,562 41,770 09,950 27.933 89,128 4,097 3,331 5,975 13,429 73,719 92,585 1,54S 42,246 2,038 129 20,270 39,310 9,578 j Co,580 91,024 2,001 0,097 1,532 078 54,311 2,236 2,915 3,766 82,473 41 265 18,475 7,486 3 124 138 < 13,087 872 G,497 3,850 7,758 1,641 110,130 2,607 11,058 8,899 6,877 380 7 U 21 1,097 5,313 5,593 8,159 4,974 3,419 58,134 106,094 3,736 1,628 12,464 4,003 690 6,641 2,324 2,330 4,479 3 10 10,778 7,720 388 3,787 19 24 31 2,324 1,749 25,853 71,518 7,561 6,758 1,414 7,471 10,061 2,999 2,041 2,744 1,945 1,349 1,170 59,413 I 4,139 3,170 12,588 3,213 3,953 1,405 3,993 3,667 23 Nov. 1,106 25 1 Sept. 5 12 Oct. 6,327 2,003 1,661 9,599 5 11 10,450 Dec. 5 12 19 26 Dec. 27, 28,30,31. Total Net increase., Net decrease. 4,887 5,872 1,729 1,420 [ 2,244 254 781 7,233 12,273 If), 174 2,296 4,499 6,007 7,505 ! 2,818 7,417 4,082 2,539 869 12,335 43,364 110,302 4,621 1,674 5,351 2,809 *.. 44,468 102.984 11.908 59,585 155,871 3,007,122 i 183,453 i 149,745 | 129,808 33,708 ' i 17,474 112,394 147,001 103,700 10,105 03,912 91,020 27,114 140,021 9,250 s 3 R H H k el to O C/3 Exhibit F.—CLEARING OPERATIONS. N o . 46.—Operation of the Federal Reserve clearing system. Jan. 1 to Dec. 31. 1918. I t e m s d r a w n on b a n k s in Federal Reserve c i t y (daily a v e r a g e ) . Number. Amount. 7,075 $18,490,797 I t e m s d r a w n on b a n k s i n district outside Federal Reserve city (daily average). Number. Amount. 52,654 843,590 New York 10,519 77,175,000 76,406 168,000 Philadelphia. 14,171 22,095,528 28,458 195,819 Cleveland 34,775 70,409,275 451,093 5,575,652 32,258 Boston Total items d r a w n on banks in s a m e , Federal R e s e r v e district ( d a i l y average). Number. Amount. 59,729 §26,334,387 86,925 124,343,000 42, 629 26,291,347 525,430 ±85,868 ,304,934,705 I t e m s d r a w n on b a n k s i n other districts (daily average). Number. Amount. Items handled by both parent banks a n d branches (daily average). Number. Amount. I t e m s d r a w n on Treasurer of U n i t e d States (daily average). Number. Amount. 6,034 519, 7,448 S3,955,694 29,727 070, 36,660 16,292,000 14,310 208. 5,681 3,152,526 31,854 80S, 38,848 23,670,208 14,825 $45,660,318 252 880,728 Richmond 1,684 856,573 33,942 17,432,225 3,948 539, 1,650 427,935 j Atlanta 2,384 3,047,848 15,355 636,771 17,739 5,684,619 2,032 025, 1,847 1,696,660 2,805 1,358,140 | Chicago 286 370,000 9,363 3,760,000 I 365,432 4,915 1,050,809 10,176 22,494,000 34,362 413,000 44,538 29,907,000 3,596 976, St, Louis 3,136 7,962,064 14,131 449,458 17,267 10,411,522 434 062, Minneapolis.. 2,997 8,040,523 16,464 750,087 19,461 9,.790,610 987 "02, Kansas City.. 2,840 8,883,818 39,014 800,487 41,854 20,744,305 3,862 820, 2,631 714 183,030 2,117,595 4,215 548,589 Dallas 1,312 1,936,631 18,217 957,787 19,529 7,894,418 1,627 367, 964 260,134 2,108 380,874 S a n Francisco 4,655 6,559,018 21,807 290,238 26,462 10,849,256 594 217, 2,576 1,492,459 3,366 2,233,124 Total... 95,724 1252,670,154 803,219 341,947,240 895,943 J594,617,394 99,005 104,318,213 23,789 52,843,320 117 57,018,929 N o . 47.—Number and amount of items handled during 19IS; also cost 'per item ana per $1,000. Federal Keserve Bank. Boston a New York & Philadelphia a Cleveland & Richmond a Atlanta & Total number of items handled. Number. 18,782,919 46,457,582 17,133,761 14,008,235 11,518,526 7,449,479 Total amount handled. Expenses, Cost per Cost per 1 transit item thousand Federal Reserve Bank, depart- handled. dollars. ment. Dollars. Dollars. 12,778,761,551 159,257 47,518,425,000 374.265 11,292,410,112 i 167,520 9,422,429,678 j 282.198 6,983,383,300 134,294 72,260 3,588,292,660 Cents. 0.84 .80 .97 2.01 1.17 .97 Cents. 1.24 .79 1.48 3.00 1.92 2.28 Chicago^ St. Louise Minneapolis & Kansas City Dallas* San Francisco b Total o Excluding Government items. & Including Government items. | | Total minij ber of items \ handled. Total amount handled. i j •' Dollars. 10,957,230,000 1,799,306,081 2,112,894,212 7,552,839,637 2,741,224,204 4.7(53.954.748 Number. 17,844,934 6,105,417 0,047,726 12,055,372 6,323,378 ^ l i s , 076 Expenses, Cost per Cost per transit item thousand depart- handled. dollars. ment. Dollars. 182,242 74,174 73,503 147,748 93,277 10?, 664 Cents. 1.02 1.21 1.20 1.22 1.47 1.18 Cents. 1.66 4.12 3.47 1.95 3.40 2.26 172, S43,005 121,511,151,273 1,868,402 1.08 1.54 c Exclusive of Government and Clearing House items. N o . 48.—Number of member banks in district; also number of nonmember banls on par list in each Federal Reserve district, by months, for the calendar year 1918. New York. Boston. ,_, C5 O OT 1 M ^3 -'4 \ti £}•£ r^ »-l S*. a s o £ ^ i s« ^ "°'£ J * OT 1 g5 3 ||3 S '£ CP o PhiladelCleveland. phia. -1 M 5 'o Lo-£ rO-£ r^5 J-, r 0 OT ,o ^ a*, as3 a ag a I© o s-c m © 55 1 £ CD <^ Ifc C3 o ^•rj t-< W £3 CJ <; ^..2 rO U ^s C3 . c3 o M-C as, £3 S-l W o £ a ^ . Lo •_ I S a o St L o u i s . Chicago. ,_, Tfl fl C3 CO \J4 | Atlanta. 1- rt (-i Cfl +4 <A n ^ . ^a C3 &•£ t~,~^ a ,_, 1 m . <D £ a o Is VI ^fl <3 •9 w -° is ^ " d as, 1 Mirmeapolis. 1 . IT: 1 M K> r^ 1 A c3 •S . 5s "o r^ '£ Kansas City. Da Has. •3 . ^ 3° ° & £ a ^ ^s. 403 249 667 397 638 312 769 549 533 264 392 F e b . 15 406 254 674 392 642 315 771 564 535 262 394 184 Mar. 15 Apr. 15... 410 252 678 388 642 315 769 619 536 281 396 198 1,137 2,223 485 1,002 795 1,077 962 1,527 960 1 1,529 960 1,535 413 249 680 384 645 317 771 626 397 199 1,151 2,260 482 1,004 803 1,077 967 775 628 540 i 259 540 287 403 194 1,002 808 1,070 543 341 407 197 487 1,012 818 1,143 345 411 359 i 412 356 414 200 1,156 2,284 1,164 j 2,278 1,174 2,296 484 635 489 1,014 823 j 1,121 973 201 1,192 2,344 498 1,024 831 M a v 15 414 249 684 379 646 319 J u n e 15 416 249 686 376 646 321 J u l y 15 416 249 689 371 646 325 782 690 546 A u g . 15 417 248 703 380 649 325 785 708 549 418 248 703 360 653 325 798 .697 554 421 245 713 i 347 | 655 328 803 421 244 717 345 1656 328 806 422 246 1 721 O c t . 15 31 1 ! 341 2-16 j 723 j 339 423 1 680 329 j 812 681 | 329 j 814 689 ! 559 688 560 731 728 560 5C5 1 351 418 349 1 420 351 i 421 351 423 e5 2,235 479 987 781 1,041 2,229 479 1,003 790 1,067 203 2,409 502 1,049 842 502 1,049 850 206 2,337 2,274 513 1,041 2,368 1 512 1,046 2,392 514 1 1,048 856 1,253 205 ; 1,285 1,321 209 1 J ,32 5 209 | 1,334 j C3 . j M rO - £ 1 j_, •% a& ' U % as, aa t ( « i d a §2 \M3 I s £3 ag a ! § ° a oa S i 8 i « o o Jan.15 1,128 S^j j3 «3 S S^ xn X fl M 3 C3 o & * ,M 1,109 ^ 3, i M Total. i I tr M ^3 C3 •° b N°*d San j Francisco. ! |>t 0-, as c 1 5 1 ^ | j_ r^ a r-; U a-J, 4> _ p ^ 633 208 j 559 1,158 7,925 9,111 633 218 I 563 1,138 7,975 9,155 638 255 1 571 1,139 8,017 9,262 1,537 651 275 578 1,128 8,078 9,315 967 1,559 675 269 586 1,123 8,138 9,3G3 972 1,568 678 270 j 600 1,114 8,192 9,504 1,114 i 978 1,109 986 861 1,100 1 989 1,101 993 1,161 993 837 1,169 994 1,573 1 686 281 608 1,105 8,241 9,570 1,985 701 243 ! 612 1,102 8,327 10,011 2,208 707 245 621 1,083 8,451 1 10.292 2 227 | 718 249 628 251 8,539 8,614 10,200 2,217 1 720 1,073 1,081 8,643 10,295 10,305 2,210 | 717 2,200 727 i 631 247 j 638 1,056 247 | 644 i 1,049 8, <i92 10,105 Exhibit G.—CERTIFICATES OP INDEBTEDNESS. No. 49.—Subscriptions, by classes of subscribers, to certificates of indebtedness issued in anticipation of the third and fourth Liberty loans. SIX ISSUES OF CERTIFICATES OF INDEBTEDNESS PRECEDING T H E T H I R D L I B E R T Y LOAN. Federal R e Serve B a n k . •^ V 8 g u 1 y p SP •9 I s & ©+j €3 C3 ^Pt/5 © -*» -*J P % s a .< PH 350 88.16 579 578 92.94 90.31 98. 53 139,810,500 64.04 43,115,000 Atlanta 737 342 332 87.36 44,019,000 914 458 77.85 St. Louis 159,931,000 64,025,500 54,223, .500 New York Philadelphia.. Richmond Minneapolis... K a n s a s C it v . . . Dallas 3 a n Francisco. 469 824 497 97.03 60.91 sk '•$ a $136,172,500 723,314,500 W .9 JS 8 P VN*C ©+3 p 208 ; 90.83 $90,233,000 787 94.36 448 > 34.57 36,204,000 15,521,000 123,319,500 8H. 03 80,274,500 55,964,000 92. 72 93,969,500 1,718,139,000 S43 ! 52.43 3,627 84.17 1,623 74.04 40.55 1,178 2,005 ; 67.59 823 67.96 &> at ©-»j «~*q ©•5 34,502,000 159,875,000 46,194,000 a p 193 182 200 P t>i 75.40 91.92 § a $72,472,500 407,380,000 61,990,000 60,636,500 c •*> © p *©£ 70 71 118 S3 a «* p PM 17.16 $5,709,000 39.66 '10,660,000 45.56 8,685,000 50,566,500 499,345,000 Vi 189 18 325,3.55,000 189 18 164 502 517,000 2,376 76.07 2,498,000 1,647 5,875,500 j 2,941 44.83 72.53 164 502 133,584,500 1S9,3.50,01X1 128,524,500 90,925,000e 9,430,000 * 228 5,109,500 30,361,000 12 $214,417,000 170 1,255,308,000 196,500,000 148 238,033,500 49 82. S2 20,281,500 23,145,000 a *<\ 75,829,500 79,573,000 78.22 095,060,500 tt 8 14 176 77.42 (^ p 40.52 59.16 14 72 fit! P © f: 96.14 713,500 2.740. .500 u © 1,743 49 8 8,593,000 22,790,500 -+< u$°'3*g B ©•=; 135,500 • 861 338,500 1,182 5,549,000 4,541 17,058,000 61.90 a p y © S© 1,382,500 36.41 70.00 52 % 57.77 84.63 75.17 71 7 2,566,500 u - P P © •a o 613 1,040 896 68.26 94.80 50. g5 © v p '•*•p © ~j* P of H " P *H © 12 $63,000 170 23,720,500 14S 2,505,500 219 119 -^.9 8 P I s 9 ti 8 © P y .9 V 32,46.8,000 33,781, .500 Total. tr. .C -u 1 th 03 8 t-. \ P. y 0> C OS +^ i a < ap I n d i v i d u a l s , corporations, etc. Other banks. sub- k fefi Trust companies. State banks. ribin NTational b a n k s . t,392 75.65 172,790,500 228 57,124,500 , i Includes $160,500 puniiased \>; the Federal .Reserve Bank of lanneapolis. , , N o . 49.—Subscriptions y by classes of subscribers, to certificates of indebtedness issued in anticipation of the third and fourth Liberty SEVEN ISSUES OF CERTIFICATES OF INDEBTEDNESS PRECEDING T H E F O U R T H L I B E R T Y National banks. State banks. Other banks. Trust companies. Federal Reserve Bank. loans—Continued. LOAN. I n d i v i d u a l s , corporations, etc. Total. "O.M 5 oo 3 O W Boston 381 97.19 $207,115,500 New York 609 98.07 991,095,000 237 90.11 $153,293,000 107 30.03 j$20,662,000 223 99.11 $130,767,500 193 98.47 494,334,500 114 80.90 20,643,000 Philadelphia 601 93.18 200,957,500 147 86.98 15,188,500 202 87.44 93,859,000 Cleveland. 729 97.72 253,885,000 671 80.45 49,243,000 199 86.14 129,806,000 176 86.27 Richmond 379 72.61 73,289,000 365 29.15 18,582,500 29.95 | 18,473,000 10 43.48 Atlanta... 315 80.00 69,015,500 S32 47.46 44,658,500 70.00 j 803,500 Chicago... ,122 99.80 289,539,500 3,316 97.70 349,353,500 St. Louis.. 461 98. 50 79,921,000 1,944 89.71 72.675,500 Minneapolis. 714 96.62 69,877,500 2,273 78.27 52,796,000 K a n s a s City 852 88.38 106,536,000 2,451 78.53 56,755,000 Dallas 525 83.60 49,287,000 661 60.31 19,982,000 S a n Francisco. 531 99.06 173,516,500 975 80.51 87,504,500 T o t a l . . . . 7,249 i 92.82 2,564,035,000 13,858 78.46 ,506,500 j 1,233 69.04 80.48 968,705,000 53.65 13 j $381,152,500 95.82 143 'l, 680,989,000 33 | 886,000 959 90.99 33 j 316,020,000 6,932,000 37 ; 703,000 1,775 88.08 37 440,569,000 7,335,000 11 I 304,000 813 40.77 11 117,983,500 : 379,500 1,154 53.50 17 114,857,000 3,782,000 5,281 96.30 175 663,204,000 17 194 j 83.98 42.31 37,741,000 725 1,169 ! 4,877,500 11,085,000 81.71 13 | 9 100.00 : 5,129,000 843 | 87.10 20,529,000 88.99 ! 29,310,000 $82,000 143 |44,149,000 1,549 1,994,500 62.85 88,102,000 175 179,000 j 2,801 90.56 15 156,963,000 26 i 4,8S6,500 | 3,017 82.12 26 127,560,000 54 ! 2,490,000 | 3,361 80.61 54 176,866,000 358 '12,056,500 I 1,252 66.59 358 83,320,000 40 ! 6,258,000 j 1,582 85.98 40 305,020,000 15 922 ,76,155,500 J23,S 4,594,504,000 N O T E . — F i g u r e s for S t a t e b a n k s , t r u s t c o m p a n i e s , a n d o t h e r b a n k s a r e o n l y a p p r o x i m a t e l y correct, since i n s o m e S t a t e s n o d i s t i n c t i o n is m a d e b e t w e e n t h e s e v e r a l classes of b a n k s operating u n d e r State laws. EXHIBIT H EAROTSTGS A1STD EXPENSES FOR 1D18. 209 Exhibit H.—EARNINGS AND EXPENSES OF THE FEDERAL RESERVE BANKS FOR 1918. Total earnings of the Federal Reserve Banks for the calendar year 1918 were $67 ; 584,417, compared with $15,438,858 for the calendar year 1917, while total current expenses were $12,137,438, compared with $4,235,866 for the earlier year. Current expenses for the year under review include besides $8,463,957 of expenses of operation proper—$2,423,540, the cost, including expressage, insurance, and other expenses incident to the issue and retirement of Federal Reserve notes and bank notes, $1,133,524 depreciation on furniture and equipment, and $116,417 the cost of alterations and repairs to bank buildings. Total expenses shown above are exclusive of the expenses of the fiscal agent departments. The latter are treated separately, being reimbursable by the United States Treasury Department. For the past year the Federal Reserve Banks, as fiscal agents of the Government, mainly in floating the certificate issues and the last two Liberty loans, disbursed a total of $16,256,689. I n addition there was outstanding at the opening of the year a reimbursable amount of $1,699,661 disbursed by the banks during 1917. Reimbursements received from the Government during the year totaled $8,382,709, leaving thus a reimbursable balance at the end of 1918 of $9,573,641. Net earnings of the banks, i. e., the excess of earnings over current expenses, totaled $55,446,979, or at the rate of 72.6 per cent on an average aggregate paid-in capital for the year of $76,342,000, compared with an average rate of 55.9 per cent for the first six months of the year and 18.9 per cent for the calendar year 1917. New York shows net earnings for the year at the rate of 113.5 per cent, Kansas City a t the rate of 78.4 per cent, San Francisco at the rate of 70.6 per cent, and Chicago at the rate of 67.7 per cent. Of the remaining banks six show net earnings at rates between 50 and 60 per cent and 2 at rates between 40 and 50 per cent. AH arrears in dividends having been paid at the end of June, dividend payments at the close of the year covered only the six months ending December. To the net earnings above shown should be added the net profits carried over from 1917—$1,158,715, also net amounts credited during the year direct to profits—$74,772. This gives total gross profits of $56,680,466. Deductions from this total, $2,805,441, comprise depreciation allowances on bank premises $1,609,537, on vaults $40,500, and on United States bonds $848,129, also special reserves of $307,275 set aside by the New York and San Francisco banks to take care of future contingencies. This leaves available for dividends, surplus, and franchise taxes a total of $53,875,025, out of which were paid all dividend arrears and the maximum 6 per cent dividends for the year, totaling $5,540,684. Of the remaining amount one-half u p to 40 per cent of the paid-in capital of each bank was carried to surplus, the total thus carried being $21,605,901. The balance, $26,728,440, was reserved for franchise tax to the Government. I t will be noted that in the case of the New York bank the amount reserved for franchise tax is $12,795,215, or more than $5,000,000 in excess of the 40 per cent of the capital, the maximum which the bank is permitted at present to carry to surplus. For the other banks the 100823°—19 14 210 A N N U A L REPORT OF T H E FEDERAL RESKRVE BOARD. ratios of /surplus to average paid-in capital for the year stand as follows: Per cent of surplus to capital paid in on IV?. 31, 191S. Boston New Y o r k . . . Philadelphia. Cleveland — Richmond... Atlanta 22.9 40.0 17.2 19.6 28.5 24.3 Per cent of surplus to capital paid in on I>e-\ 31, 1918. Chicago St. Louis Minneapolis Kansas CUv Dallas San Franc isco i I i ....J ' 29.6 21.1 24.8 33.1 18.8 26.4 For the system as a whole the ratio of surplus to paid-in capital is 28.2 per cent. Of the total earnings of the hanks 71.5 per cent, as against 45 per cent the year before, came from discounts, largely of war paper. Bills purchased in the open market contributed 17.7 per cent of the total earnings, as against 32.2 per cent; United States securities, chiefly Treasury certificates, 5.7 per cent, as against 15.3 per cent; transfer operations yielded about 1.5 per cent of the total earnings, as against 3 per cent the year before, and the remainder came from penalties on deficient reserves, service charges, commissions, profits on foreign exchange operations, and sundry smaller profits. Expenses of operation of the banks proper, exclusive of their fiscal agent departments, totaled $8,463,957, compared with $2,669,855 in 1917. Of the larger total about 42 per cent, as against 28 per cent in 1917, went as compensation to the clerical staff, and 11.5 per cent, as against 23 per cent in 1917, as salaries to bank officers. Nearly 10 per cent of the total operating expenses went for postage and expressage and over 6 per cent for printing and stationery. Contributions of the banks for the support of the Federal Reserve Board aggregated $382,641, as against $237,795 the year before, and constitute about 4.5 per cent of the total 1918 expenses of operation, as against about 9 per cent the year before. Rent paid by the banks is about double in amount t h a t for 1917, though some of the banks own the premises or parts thereof occupied at present by them. This is true oi New York, Philadelphia, Richmond, Atlanta, Dallas, and San Francisco. With the exception of Cleveland and Minneapolis, all the banks have purchased ground on which it is proposed to erect buildings for use as permanent banking quarters. Total book value of the investments in " b a n k premises," after allowing $1,609,537 for depreciation, stood at $8,081,841 at the end of the year, compared with $707,611 at the beginning of the year. Earnings and expenses of each Federal Reserve Bank and of the system as a ivholcfor the calendar year 1918. EARNINGS. Boston. New York. Philadelphia. $3,068,028 $17,736,261 13,241,105 D i s c o u n t e d bills 5,411,821 756,313 931,701 I J u r c h a s e d bills 233,489 107,719 1,561,839 U n i t e d S t a t e s securities 49 Municipal warrants 2,621 Transfers, n e t e a r n i n g s 22,646 Commissions received Deficient r e s e r v e p e n a l t i e s 18,426 29,784 (including interest) 27,192 N e t service charges r e c e i v e d . 59,695 47,714 50,167 Profits realized on U n i t e d 41,821 S t a t e s securities S u n d r y profits 49,286 502,189 247, 805 Total earnings. Cleveland. Richmond. Atlanta. Chicago. Minneapolis. Kansas City. Dallas. San F r a n cisco. Total. 124,696 52,390,422 •SI, 758,075 $6,447,466 ;$2,218,069 SI, 547,842 $2,643,113 $1,497,379 $2,671, 397 $48,343, 853 211,602 302,231 1,253,259 226,164 157,963 175,885 1,097,630 11,939,788 141,585 273,634 116,370 114,451 89,096 312,463 152,159 135,268 3, 828,802 611, 895 83,437 310,616 6 2,889 7,995 14,222 662 89.608 33,757 149,733 127,388 978,189 51,214 275,758 48,209 202,522 58,029 35,383 66,462 41,029 122,654 49,065 35,240 21,752 65,382 26,570 52,107 25,943 29,101 27,719 99,929 23,493 56,305 28,323 96,409 19,862 698,991 421,332 167,239 22,744 59,836 11,139 13,524 51,820 50,214 17,240 27,706 12,453 21,747 294 4,154 272,313 1,028, 89S 4,475,195 II 25,314,736 ! 4,357,740 j 5,226,864 j 2,979,048 I 2,293,058 II 8,481, St. L o u i s . 2,676,828 I 2,049,954 j 3,451,936 2,089,526 J 4,187,785 j 07,584,417 Earni7igs and expenses of each Federal Reserve Bank and of the system, as a tcholefor the calendar year 1918—Continued. CURRENT E x p e n s e of o p e r a t i o n : Assessments account expenses, Federal Reserve Board F e d e r a l A d v i s o r y Council (fees a n d traveling expenses) G o v e r n o r s ' conferences (including traveling expenses) F e d e r a l R e s e r v e A g e n t s ' conferences ^ (including traveling expenses) Salaries— B a n k officers Clerical staff Special officers a n d w a t c h m e n All o t h e r D i r e c t o r s ' fees Per d i e m allowance Traveling expenses Officers' a n d c l e r k s ' t r a v e l i n g e x p e n s e s Legal fees Rent T a x e s a n d fire i n s u r a n c e Telephone Telegraph Postage Expressage I n s u r a n c e a n d p r e m i u m s o n fidelity bonds L i g h t ; h e a t , a n d power P r i n t i n g a n d stationery." Repairs a n d alterations All other expenses T o t a l e x p e n s e of operation Cost of F e d e r a l R e s e r v e c u r r e n c y , including expressage, i n s u r a n c e , e t c Miscellaneous charges a c c o u n t n o t e i s s u e s . . Furniture and equipment Repairs, alterations, etc., t o b a n k buildings Total current expenses. N e t e a r n i n g s for y e a r 1918 P e r c e n t of a v e r a g e p a i d - i n c a p i t a l . Philadelphia. EXPENSES. Cleveland. Richmond. $33,929 $43,073 $19, 814 $15,369 372 781 150 455 145 210 70 140 191 321 142 381 283 264,942 9,115 189,901 1,082,719 25,854 64,288 283,624 14,976 4,150 1,220 938 4,337 2,600 33,328 25,035 6,759 3,970 52,954 25,070 19,505 60 1,262 4,519 3,017 139,008 2,423 13,540 19,514 99,440 47,204 4,160 670 1,120 2,463 1,570 5,050 4.8,455 173, U S 4, 868 5,008 3,320 680 1,218 3,015 1,122 5,206 1,823 2,110 2,960 45,519 9,767 70,643 121,938 5,280 3,060 2,295 2,548 2,689 3,007 3,495 18,722 3,276 '766 5,030 28,998 5,140 105,819 405,610 32, 550 11,958 4,920 740 1,941 5,536 3, 850 53,078 513 6, 781 12,311 63,774 10,231 72,573 206,763 7,218 5,212 8,245 1,750 2,317 3,309 6,779 3,170 40,283 26,951 81,307 297,579 16,901 9,049 3,060 1,060 1,709 15,513 2,000 37,465 1,939 5,489 6,680 54,346 5,646 10,899 5,116 39,348 2,687 89,735 32,871 6,997 137,960 42,146 176,198 16,599 4,801 34,366 2,565 45,588 20,125 2,551 46,566 15,430 49,135 8,464 6,648 36,516 12,275 15,680 2,041 762 23,782 133 56,282 25,157 4,899 75,877 20,261 179,972 6,116 7,776 25,386 5,092 15,692 691,112 2,146,805 593,464 717,740 408,267 378,923 1,076,624 167,828 7,558 41,622 335,044 27,921 170,933 243,857 3,081 215,043 182,092 6,569 85,784 118,822 6,700 91,786 149,390 9,314 89,846 Boston. New York. $32,190 $100,876 475 1,650 70 28 199 113 Atlanta. Minneapolis. Kansas City. Dallas. San Fran-| cisco. $18,397 $14,117 $17,998 $15,223 $22,277 582 1,034 270 269 204 Chicago. S t . L o u i s . $49,378 388,682 13,004 172,365 3,043 232 354 I 32S 422 68,045 188,680 5,609 784 8,260 3,675 6,553 2,426 1,225 21,263 169 2,481 4,455 60,974 466 68,544 170,134 4,314 5,464 1,960 995 1,487 7,757 2,215 659 1,211 1,883 9,668 24,688 28,843 18,361 2,016 16, 238 6,005 2,523 25,370 5,020 53,950 10,774 2,413 25,072 20,278 9,343 2,960 50,933 14,742 126,550 472,046 308,910 486,959 406,130 776,977 147,347 4,597 102,031 114,287 10,734 30,477 98,542 57,017 46,710 82,730 739 2,323 4,775 34,813 25,192 49,125 123,402 120 3,610 850 1,562 1.982 1,732 11,298 167 2,213 3,193 36, 501 13,039 "*4i,'758 601 94,605 287,608 I 1,595 1,117 4,307 I 1,480 14,193 2,919 18,306 7,768 4,859 11,716 41,813 53,888 238,746 I 9,678 45,169 31,471 18,245 61,895 627,473 1,650,675 970,015 2,680, 703 1,086,916 992,185 643,820 726,021 464,408 689,228 535,424 1,070,570 I ,505,180 122,634,033 " 270,824 4,234,679 (2,335,228 1,665,585 ", 831,072 1,950,807 1,585,546 [2,762,708 1,554,102 13,117,215 113.5 46.3 54.7 54.7 60.3 67.7 56.5 49.3 53.9 78.4 52.2 1 70.6 Earnings and expenses of each Federal Reserve Bank and of the, system as a whole, for the calendar year 19IS—Continued. P R O F I T A N D L O S S A C C O U N T O F E A C H F E D E R A L R E S E R V E B A N K A N D O F T H E S Y S T E M A S A W H O L E F O R T H E C A L E N D A R Y E A R 1918. x. Earnings C u r r e n t expenses ... i 1} > ISO 22 b 3 0 Total. ClpvrvI n i. ! •Rich| UK n 1 2 0 S24 1,^11 b79 U /> , MS I J k 311 | >) ^ * / b ISO i 22 M l f^j * 19i 0 2 4 >bb,990 2, > ,Z2* Less a m o u n t s charged a g a i n s t profit a n d loss on a c c o u n t of: Bank premises I I 200,000 | „„ A m o u n t s r e s e r v e d for d e p r e c i a t i o n ' on U n i t e d S t a t e s b o n d s Special reserves Miscellaneous d e b i t s d u r i n g y e a r j Total deductions , ! TMifladol-: p'u i ... ,M . T . I Minne- I K a n s a s I ^ -,, ;Sa,n Fran-' | | j ! 803,800 | 182,(504' i i ! j i 209,GOO | ; l l b , , 0 'b 8>1 072 il OiP S{ 7 1 I 2J(« D « >lo 2,« )-t 7N il, | 2 9 , 4(7 j 10,000 I 100,000 12,797 ! 29,500 j 14,477 971,116 | 298,735 | 98,883 84,406 ,1 O M ] Profit a n d loss D e c . 31, 1918, after p a y m e n t of d i v i d e n d s 2.921,000 120,467,891 2,608,344 1 , >> 71 > i >b> >s5 b 831 072 2 J*l 14> 1, >S > "db ^ 0 5 b , D 5 1 7 >J MS 3 i O y W | 5 i 69") b<M ••• I i | 116,131 I 299,375 j ' 132,059 ! ; >i 10<i ,3,117 M5 \ o> Hb 979 201 ->b J 13,198 ; : | m\''-2o]ML~\ 23,198! 13,112 I 172,997 220,734 """".'. 25,991 I 172,997 4,226 | 61,736 I 238,600 11,000 240,663 528 i 7,900 1,551 1,609,537 40,500 S48.129 307,275 i 74,772 324,960 j 313,927 i 248,051 N e t a m o u n t a v a i l a b l e for d i v i d e n d s , surp l u s , a n d franchise t a x e s D e c . 31, 1918.. 3,305,180 121,662,917 13,192,327 14,268,107 2,312,030 ,1,652,473 6,805,081 12,008,148 1,545,847 2,731.155 1,445,911 12,945,849 384, ISO I 1,195,026 Dividends paid 232,432 j 182,473 j '604,635 404,838 583,983 ! 716,107 168,103 | 309,729 | 261,503 | 497,675 53,875,025 5,540,684 3,552,000 2,079.598 1,470,000 16,200,446 1,603,310 ;1,377,744 '2,421,426 1,184,408 2,448,174 D i s t r i b u t i o n of profit a n d loss: Carri ed to s u r p l u s a c c o u n t R e s e r v e d for G o v e r n m e n t franchise tax 1,460,500 12,795,215 1,304,172 ,1,776,000 1,039,799 r,, , <U,17> FO ^ l i i H ^ l >\740 <5 3 22bRM >2'>7Q,048 *2 ">' ° ^ ^ *s1 ?<7 ^<>7bS.s ^ < t° °"4 ^3 * >1 ^3b <VV 0 ->2h *l 1S7 78" ^ 7 >M 1i7 07) ' i n I > bS) ,o> 1 0v> <nb 092 185 6 U S20 | ' 2 7 173 1 b>) b7 > | 72b 02i | 4M to-^ ( b«-9 „2^ | <FD 121 1 070 70 J 2 -57 MS N e t e a r n i n g s for y e a r Profit a n d loss a c c o u n t J ark 1, 1918 Vaults ,- i Net credit. 3,100,223 : 801,655 735,000 3,100,223 I S01,655 688,872 1,210,713 592,204 1,224,087 21,605,901 688,872 : 1,210,713 592,204 1,224,087 26,728,440 I ' Earnings and expenses of each Federal Reserve Bank and of the system as a v-holefor the calendar year 1918—Continued. FISCAL AGENT D E P A R T M E N T DISBURSEMENTS OF EACH F E D E R A L R E S E R V E BANK, AMOUNTS R E I M B U R S E D AND BALANCES REIMBURSABLE AT THE END OF THE CALENDAR Y E A R 1918. New York. Boston. Philadelphia. Cleveland. $1,143,633 $4,821,309 $1,074,146 $1,447,592 143,211 360,350 100,033 139,248 A m o u n t s r e i m b u r s a b l e J a n . 1, 1918... 1,286,844 729,235 Total 5, 181, 659 1,174,179 1,586,840 415,420 2,132,129 820,055 557,609 B a l a n c e r e i m b u r s a b l e J a n . 1, 1919.. 758,759 3,049,530 766,785 Richmond, St. Louis. Minneapolis. Kansas City. $446,770 43,221 $774,197 $2,415,011 $1,046,297 48,135 287,428 | 124,849 $421,013 54,127 $7S4,789 86,450 489,991 263,916 822,332 2,702,439 1,171,146 720,804 363,683 1,440,554 475,170 324,958 871.239 420,019 6il,113 1,533,393 599,963 151,973 17,958,350 8,382,709 226,075 458,649 1,261,885 ! 450,342 150,212 451,220 933,435 9,573,641 $133,396 1,054,373 Atlanta. Chicago. Dallas. San Fran- Total. $596,108 $1,285,794 L $16,256,6S9 1,699,661 247,604 65,005 i COST OF F U R N I T U R E AND EQUIPMENT, INCLUDING VAULTS, ALSO BANK P R E M I S E S . B a l a n c e as reported J a n . 1, 1918 "$4l"622" "$170'933* Total Charged t o c u r r e n t e x p e n s e or profit a n d $25,581 189,462 $85,7S4 $9.065 82.721 "$89*840 "$172," 365*1 $44,499 57,532 $29,501 30,476 $11,000 41,753 $45,169 41,622 170,933 215,043 85,784 91,786 89,846 172,365 102,031 59,977 60,460 52,753 45,169 1,187,774 41,622 170,933 215,043 85,784 91,786 89,S46 172,365 102,031 59,977 46,710 52,758 45,169 1,174,024 6,875 6,87. 400,000 221,000 400,000 6,875 8,081,841 $10,161 72,569 $238,740 $40,343 2,227,024 A m o u n t recovered a c c o u n t p r e v i o u s exp e n d i t u r e for v a u l t e q u i p m e n t ! B a l a n c e J a n . 1, 1919 B a n k premises ' | i -. $13,750 46, 710 800,000 i 2,317,692 290.000 500,000 217,000 COST OF UNISSUED F E D E R A L R E S E R V E CURRENCY. $12,915 101,372 | ""$98," 542" \ $167,828 $335, 044 $512 243,345 $182,092 $118,822 $58$ 148,802 $388,682 $16,167 1 131,180 Total i 167,828 Cost of F e d e r a l Reserve notes charged t o | c u r r e n t expenses d u r i n g year 167,828 335,041 243,857 182,092 118,822 149,390 388,682 147,347 114,287 j 93,542 82,730 238,746 2.267,367 335,044 243,857 182,092 118,822 149,390 388,682 147,347 114,287 98,542 82,730 238,740 2,267,367 A d d i t i o n a l cost d u r i n g year 1918 B a l a n c e J a n . 1. 1919... - i 1 1 1 1 Exclusive of $658 representing cost of Federal Reserve notes in transit to branches. i 1 Earnings and current expenses, by months, for the calendar year 1918, of each Federal Reserve Bank and of the system as a -whole. EARNINGS. Boston. February March April May June July August September October.... November December. Total. $229,863 320,216 276,920 274,298 263,715 323,463 455,418 344,092 407,991 512,690 517,025 549^ 504 New York, $1,338,457 1,324,642 1,866,517 1, 838,393 1.949,912 l', 964,753 1,828,034 2,085,662 2,634,482 2,825,751 2,862.607 2, 795; 526 4,475,195 J 25,314,736 Philadelphia. i Cleveland. ' R i c h m o n d . $191,710 175;229 209,376 226,898 256,525 292,353 331,912 370,339 411,267 509,593 6)95; 778 686,760 Atlanta. Chicago. St. Louis. Minneapolis. Kansas Dallas, City. San Francisco. Total. $161,076 141,842 152,822 195,000 226,812 248,867 265,603 277,790 278,659 302, 226 364,219 364,132 $88,287 80,665 98,726 120,035 123,881 127,786 154,957 186,527 247,396 339,952 356,150 368,696 $435,984 380,723 366,369 510,314 544,357 546', 379 818', 756 884,659 938,386 1,090,029 979,099 986,692 $157,599 126,773 133,235 189.521 180;044 206,413 262,522 211.371 249; 923 330.758 320,691 307,978 $87,962 82,443 79,780 109,530 138,007 158,683 234,198 250,148 288,150 236,362 182,225 202,466 $184,296 143,098 148,032 245,115 287,308 292,166 344,592 337,747 300,762 389,591 407,645 371,584 $109,953 92.314 107,067 135,677 153,537 146,696 156,379 188,137 235, 610 263,725 234,711 265,720 $177,636 219,174 255,202 233,689 258,778 264,850 335,374 410,053 465,024 564,012 482,721 521,272 $3,486,814 3,3o6,0S9 3,975,167 4,418,367 4,713,083 4,900,670 5,698,160 6,055,535 6,915,977 7,918,524 8,011,807 8,134,224 4,357,740 ; 5,226,864 j 2,979,048 2,293,058 8,481,747 2,676,828 2,049,954 3,451,936 2,089,526 4,187,785 67,584,417 S t Louis. Minneapolis. Kansas City. - Dallas. San Francisco. $323,991 268,970 281.121 339', 897 330,207 328,261 510,415 509,010 458, 327 553,835 608.936 713,894 1 1 CURRENT E X P E N S E S . Boston. New York. Philadelphia. June Julv August September....... October November. December... $33,030 38,017 47,763 89,754 41,376 205, 851 48,791 52,426 65, 578 97.061 62,302 288,066 $150,095 154, 282 147, 036 141,295 139.878 154,477 238, 062 188,137 214,376 271,419 312,784 568,867 $30,962 41,460 42,992 38,567 58,766 266,542 43,954 47. 058 45,731 60,441 57, 787 852, 656 T o t a l curr e n t expenses.. . 970,015 2,680,703 1,086,916 February March April Cleveland. Richmond. SM,t»- s 71 iH) 1, SM) 2U0.J7O $21,523 28,292 40,671 40,006 36,609 41,607 41,048 47,537 57,444 46', 536 74, 886 167,666 $17,832 16,821 19,869 19,546 18,177 35,885 26,891 58,452 55,712 79,316 64,802 214', 170 992,185 643,820 627,473 .9,MU> «»,, 1 •.; 7/ 96 *> 72,77^ T'./JV) M,615 '/ i, (ho 1 Atlanta. Chicago. $51,281 54,167 65,471 123,181 89, 769 ' 120,030 129,409 142, 255 151,448 158,559 152.427 417j 678 1,650,675 j $28,236 28,301 53,221 30.416 34,279 87,790 47,710 56,453 73,055 73, 854 52,752 229, 954 $21,829 19,596 22,814 26,031 25,667 30,135 31,326 41,607 51,284 88,697 36,039 119,383 $41,816 40,698 45.^11 37,' 401 50,775 47, 107 60,99! 5^034 53,959 57, 5H6 65.542 129,865 726, 021 464; 408 689/228 ; •' : i i I ' ; • : Total. $19,517 20,034 22,725 23;532 23,333 29", 472 79,531 41,599 49,545 49,777 42, 283 134,076 $37,4o6 37,282 46,458 47,620 65,987 61,274 94,415 86,319 70,394 68,685 64,637 390,013 $517,205 588,916 631,141 645,814 657,390 1,107,129 911,771 891,956 951,947 1,068,381 1,078,121 3,168,164 535,424 1,070,570 12,137,433 216 ANNUAL-REPORT-OF THE FEDERAL RESERVE BOARD. Exhibit I.—RECEIPTS AND DISBURSEMENTS OF THE FEDERAL RESERVE BOARD. There is here given a statement of receipts and expenditures of the Federal Reserve Board in 1918. The total expenses of the Board for the year are shown on the detailed statement of commitments to have been $427,696.89. RECEIPTS. Unexpended balance Jan. 1, 1918 $16, 504. 44 Assessments, 1918 382, 081. 31 Transfer from "Expenses, Trading With the E n e m y A c t , " Federal Trade Commission 10, 000. 00 Transfer from " E x p e n s e s , Trading with t h e E n e m y A c t , " Treasury Department 2, 500. 00 Bulletin, subscriptions to ." 2, 049.14 Reimbursements 24, 207. 32 Miscellaneous 2,152. 26 Total available 439, 494.47 DISBURSEMENTS. B y fiscal agent Auditor's settlements $395,018.39 50, 678. 29 445, 696. 68 6, 202. 21 Deficiency 439, 494. 47 GENERAL STATEMENT. Total available Balance to credit reimbursable account Jan. 3,1918 Reimbursements during 1918 Balance Commitments, Commitments, Commitments, available for general expenses general expenses, 1918 1917, paid in 1918 in excess of receipts 439, 494. 47 $500. 71 24, 207. 32 — 24,708.03 414, 786. 44 $427, 696. 89 13,138. 80 26, 049. 25 440, 835. 69 440, 835. 69 Commitments, in excess of receipts Reimbursable expenditures. Total in reimbursable account Reimbursable expenditures in excess of receipts Unpaid commitments Deficiency 26, 049. 25 $27, 562. 86 24, 708. 03 2, 854. 83 22, 701. 87 6, 202. 21 28,904.08 28.904.08 Detailed statement of March. P e r s o n a ] services: B o a r d a n d i t s clerks Secretary's office Counsel's office Division of a u d i t a n d e x a m i n a t i o n .Division of r e p o r t s a n d s t a t i s t i c s . . Division of a n a l y s i s a n d r e s e a r c h . . Division of issue Messengers Charwomen Total April. May. commitments. July. September. August. October. December. Total. $7, 458.33 $7,338.33 b7.462.34 |$7,594.99 .$7,595.00 $7,559.01 $6,906.65 '$5,205.56 55.133.35 $5,288.70 S6.312.17 1^6,342.53 i 2,414.16 2,473.33 2,506.43 2,576.66 2,400.55 735.01 2,944. 3,208.13 3,431.01 3,415.82 3,371.01 3,566.67 | 1.093,74 2.982.50 2,082.51 2,082.49 2.082.50 2,082.51 2,102.49 1.594.17 1,510.84 1,510.83 1.455.83 1,500.84 j 2.720.00 2, (520.00 2.745.00 3.170.00 3,220.00 3,220.00 3,401.65 4,178.33 4,327.51 4,765.80 4,487.94 4.330.02 ! 1,(543.31 1,673.37 1. 714.46 1,853.58 1,979.16 2,360.31 3,427.21 3,684.17 3,715.04 3,675.23 3.737.89 3,728.54 I 893.32 1,042.78 1,341.89 "416.67 1,062.49 | 1,062.50 | 1,062.52 ' " 9 9 5 . 8 3 1,120.00 1,180.84 1,352.49 1, 487.83 1,535.01 1,740.16 2,052.84 1,970.01 652.00 500.00 • 558.50 570.00 570.00 570.00 654.99 644.33 630.32 555.66 60S.01 663.68 75.39 66.00 j 66.00 j 66.00 66.00 66.00 78.00 66.00 78.00 78.00 71.93 57.20 I7.S5S.03 [7,874.53 18,209.26 18,895.21 119,033.21 19.773.68 120,868.25 20,755.44 21,992.11 23,187.85 23,501.38 1242.029.47 N o n p e r s o n a ] services: T r a n s p o r t a t i o n a n d subsistence— B o a r d a n d i t s clerks 25,88 ; 143.77 12.91 355.90 j 40.99 j 377.81 Secretary's office 23. 81 31.70 Division of a u d i t a n d e x a m i n a t ion 756.oo " 979." 7sYl," 579*20 ' i 039.'69* |"p656*35"j "i,"669."29" 1,518.05 1,438.07 Division of a n a l y s i s a n d research 28. 32 Division of r e p o r t s a n d statistics Counsel's office Messengers o.OO ! C o m m u n i c a t i o n service: T e l e p h o n e . . •. 229.04 j 278.09 221.03 173.21 166.99 151.53 j 154.09 157. 64 Telegraph 865.98 608.18 1,057.43 j 921.50 367.64 I 832.97 428.17 192.04 Postage 17.00 14.50 18.00 I r P r i n t i n g , binding, ct c 4,384.85 "i." 992 .'2. ,' 2,658.54 1 2,485.33 :, 746. 00 M34.19 ,471.95 2,259.36 31.00 ! ( ' o n t r a e t repairs '.'. 11.67 1.20 4.30 3.00 13.25 8. 37 6.50 j 30.00 I Electricity (light a n d p o w e r ) 30.00 30. 00 30.20 30.20 30.00 30.00 j 25.00 j S t e a m (heat) 25.00 25.00 25.00 143.04 ! O t h e r n o n p e r s o n a l services 149.54 "251*141 216.47 274.73 Supplies: 178.95 Stationery 232.62 j 279.46 174.43 1.05 j 234.97 198.89 j 19.50 Periodicals 12.25 ! 87.10 22. 00 26.80 ! 19.10 32.50 I 15.50 Other 254.72 i 104.33 241.45 ! 27.09 28.87 94.55 567.02 j Equipment: 486.89 F u r n i t u r e a n d office e q u i p m e n t 282.33 ! 694.98 345.13 195.48 1,692.40 ! 234.36 835.38 I Books 30. 00 332.20 13.20 I 5.00 3.75 : 3.15 12. .'0 t 607. 72 Cold s e t t l e m e n t fund (including s a l a r i e s ) . . 713.04 738.92 610. 61 522.32 I 414.32 m. 68 382.53 I 2,191.76 2,022.60 8,313.91 4,820.66 5.895.40 8,332.97 ; 10.204. 67 10.263.70 i Foreign e x c h a n g e (including salaries) 148.91 C a p i t a l issues (including salaries) 847. 63 1,433. 73 1, 663. 72 3,613.83 187. 93 Rent 288. 81 447. 93 119.07 I 119.07 447. 93 437. 93 119.07 I ; so. oo 67.00 91.25 2,887.73 186.70 2.093.22 25.62 99.82 1.142.49 18.41 36. 54 183.30 1,996.28 'i*52i."85" 18.476.06 41.37 '351.40 69.39 66.62 13.38 93.50 1.70 i.00 31.70 164.87 189.58 ~603~26' 3,202.82 27.50 30.20 25.00 229.50 156.59 144.43 13. 00 2,003.(53 15.85 30.20 25.00 190.12 308. 61 1.50 30. 20 25.00 234.00 2.187.81 5,976.68 81.50 29.043.34 133.44 361.20 175.00 3,342.29 373.07 7.00 15.53 488.96 56.55 53. 73 196. 54 134. 75 86.47 122.67 11.00 11.32 2,829.75 428.55 1,500.58 1,530.53 1,380.74 1.50 14.38 342.00 417. 70 0.125.04 11,591.81 297.69 477.05 2.50 315.00 "*373."98" 9.900.56 9,912.28 8,452.96 418.18 6.023.82 92,575.36 7,707.82 4.150.69 5.00 160.95 168.53 19.00 :.395.81 6.30 30.20 225.74 173.78 200.23 569.07 Total . 10,721.74 1 9,218.13 17,595.48 43,414.28 17,337.55 15.299.18 |16,087. 98 |16. 737. 30 lix. 242.08 [20, 580. 81 Grand total. . 28,579. 77 27,092. 66 35,804.74 32,309.49 36,370.76 November. 594.07 594.07 14.109.09 185,667. 42 42,572.92 39,511.65 J37,610.47 427,696.89 218 A ^ X U A L REPORT OF T H E FEDERAL RESERVE BOARD. Exhibit J.—STATE BANKS AND TRUST COMPANIES ADMITTED TO MEMBERSHIP. The following is a list of the State banks and trust companies which have been admitted to membership in the Federal Reserve system up to and including December 31, 1918, showing the capital, surplus, and total resources as compiled from the latest available figures. Nine hundred and thirty-six State institutions are now members of the system, having a total capital of $348,649,871, total surplus of 1401,967,642, and total resources of $7,338,812,775. Capital. Surplus. Total resources. DISTRICT N O . 1. CONNECTICUT. New Britain—New Britain Trust Co New Haven—Union & New Haven Trust Co. South Manchester—The Manchester Trust Co. Waterbury—Colonia 1 Trust Co $400,000 650,000 100,000 400,000 $200,000 500.000 25,000 500,000 $5,503,209 5,014,979 1,081,220 0,493,973 300,000 400,000 400,000 400,000 5,349,090 13,815,113 MAINE. Bangor—Merrill Trust Co Portland—Fidelity Trust Co MASSACHUSETTS. Arlington—Menotomy Trust Co , Boston— American Trust Co Beacon Trust Co Commonwealth Trust Co International Trust Co Liberty Trust Co Metropolitan Trust Co New England Trust Co Old Colony Trust Co State Street Trust Co United States Trust Co CambridgeCharles River Trust Co Harvard Trust Co Fitohburg— Fitchburg Bank & Trust Co Holyoke—Hadley Falls Trust Co Lawrence—Merchants Trust Co Lynn—Security Trust Co Newton—Newton Trust Co Norwood—Norwood Trust Co Salem—Naumkeag Trust Co Winchester—Winchester Trust Co Worcester—Worcester Bank & Trust Co 125,000 25,000 1,070,397 ,000,000 600,000 ,000,000 ,500,000 200,000 300,000 , 000,000 1,000,000 ,000,000 ,000,000 2,000,000 1,000,000 500,000 1,500,000 300,000 300,000 2,000,000 7,000,000 1,500,000 1,000,000 29, 886,924 20,124,465 27,608,485 24,724,435 5,797,477 6,610,161 27,633,904 166,186,248 40,011,716 10,684,141 200,000 200,000 500,000 500,000 300,000 200,000 400,000 200,000 250,000 100,000 , 250,000 200,000 100,000 250,000 250,000 150,000 200,000 400,000 4,000 150,000 25,000 500,000 3,000,000, 3,000,000 1,000,000 4,000,000 3,500,000 500,000 27,075,000 29,379,000 3,920,225 4,845,949 5,472,124 6,706,573 7,046,040 6,080,947 6,129,387 2,728,716 5,302; 517 791,783 26,071,361 ' R H O D E ISLAND. Providence— Industrial Trust Co Rhode Island Hospital Trust Co Union Trust Co Total I 81,616,670 61,9281640 12,225, 726 628,462,609 E X H I B I T "J ST ATI: BATNTV 219 MEMBEBSHXP Total i source Capital. J U S T R I C T N O , 2, CONNECTICUT B r i d g e p o r t — B r i d g e p o r t T r u s t Co S o u t h N o r w a l k — S o u t h N o r w a l k T r u s t Co NEW $500,000 100,000 $300,000 78,000 $0,844,282 2,010,148 JERSEY, A s b u r y P a r k — S e a c o a s t T r u s t Co B a y o n n e — B a v o n n e T r u s t Co Bloomfield-—Bloomfield T r u s t Co Boonton—Farmers & Merchants B a n k Cranford—Cranford T r u s t Co E a s t Orange—Savings I n v e s t m e n t & T r u s t Co. of E a s t O r a n g e . Glen R i d g e — G l e n R i d g e T r u s t Co H a c k e n s a e k — P e o p l e s T r u s t & G u a r a n t y Co Hohoken—Jefferson T r u s t Co Jersey C i t y Commercial T r u s t Co. of N e w Jersey N e w Jersey T i t l e G u a r a n t e e & T r u s t Co Montelair— B a n k of Montelair Montelair T r u s t Co Morristown—Morristown T r u s t Co N e w a r k — F e d e r a l T r u s t Co Orange - T r u s t C o m p a n y of Orange Passaic— Peoples B a n k & T r u s t Co Passaic T r u s t <fe Safe Deposit Co Plainfield— Plainfield T r u s t Co R a h w a y — R a h w a y T r u s t Co R u t h e r f o r d — R u t h e r f o r d T r u s t Co Westfield— "Peoples B a n k & T r u s t Co. of Westfield Westfield T r u s t Co W e s t H o b o k e n — H u d s o n Trusi Co 100,000 200,000 200,000 75,000 100,000 150,000 100,000 500,000 200,000 1,000.000 1,000,000 100,000 200,000 BOO,000 1,000,000 100,000 200,000 200,000 300,000 100.000 100,000 100,000 10!), 000 1,000'. 000 75,000 150,000 100,000 25,000 20,000 ! 300 ^ 000 20,000 250,000 50,000 1,500,000 1,000,000 1, )78, 780 4,112/22 3,-*>N,597 490,297 1,487,335 N, 2<>3,327 1,17«>, 150 »>, VM, 520 \ a 0 l , 502 800 703 1 15 R0,000 100,000 I 300,000 500,000 30,980 3 330,000 \, 5v>,95t 10,130,398 10.21'), 9*0 1,0 V), 21^ 300,000 100,000 200,000 25,000 25,000 1O,0)M,07~* 5 2Y* 027 7^ 852! 52*: V,5,5i) l,35!-«, 537 80,000 2,010 300 20,000 1 2 JSJ.,',40 1,000,000 21 ^ \ 0 4 1 N E W YORK. A m i t y v i l i e — B a n k of A m i t y ville A m s t e r d a m — M o n t g o m e r y C o u n t y T r u s t Co B a t a v i a — B a n k of Genesee ". Bingha-mton—Peoples T r u s t Co. of B i n g h a m t o n Brooklyn— ~ Brooklyn Trust C o . . . F r a n k l i n T r u s t Co M a n u f a c t u r e r s T r u s t Co T h e Peoples T r u s t Co Buffalo— Buffalo T r a s t Co Citizens C o m m e r c i a l T r u s t Co Canisteo— F i r s t S t a t e B a n k Chatham—State Bank, Chatham, N . Y E a s t A urora—Erie C o u n t y T r u s t Co E l m i r a — C h e m u n g Canal T r u s t Co Floral Park—Floral Park B a n k Gloversville—Trust Co. of F u l t o n Counl.y H a m m o n d s p o r t — B a n k of H a m m o n d s p o i 1 H i c k s v i l l e — B a n k of Hicksviiie I t h a c a — I t h a c a T r u s t Co J o h n s o n C i t y — W o r k e r s T r u s t Co L i t t l e F a l l s — H e r k i m e r C o u n t y T r u s t Co Millbrook—Bank of Millbrook" Mineola—Nassau C o i m t y T r u s t Co New Y o r k B a n k e r s T r u s t Co B a n k of America Central U n i o n T r u s t Co Columbia Bank C o l u m b i a T r u 4 Co Commercial E x c h a n g e B a n k Commonwealth Bank Continental Bank Corn E x c h a n g e B a n k E q u i t a b l e T r u s t Co. of N e w York F a r m e r s Loan & T r u s t Co F i d e l i t y T r u s t Co Fifth A v e n u e B a n k of N e w Y o r k F u l t o n T r u s t Co G u a r a n t y T r u s t Co. of N e w Yor k I r v i n g T r u s t Co Lincoln T r u s t Co M a n h a t t a n Co Mercantile T r u s t & Deposit Co 25,000 200; 000 100,000 500,000 | i :! , : : : | ! l j I ! i ' f-j7,'U: 2, 7 ro,*)0' 13, 12b 1,500,000 1,000', 000 1,000,000 1, 000,000 2,518, 1,000, 300, 1,000, 30, 7os,ol7 500,000 1,250,000 50,000 50,000 100,000 600,000 25,000 200,000 50.000 25,000 200,000 100,000 350,000 50, 000 100,000 500, 1, 250, 25, 50, 37, 400, 25, 100, 50, 70, 100, 25, 3.50, 50, 32, ,72,1)5 12.210,-TO 23 W \ 9 U 552,32^ 1, "5 3°, 201 1, |<H, H> S 02.,'10) t I, J,V.0, H 978, f >9-18,2 5 2,0>,2, C I 2, lb> **> 4, r o 0-; *5? 7 i l 2,247, )2' i : .50,000 100,000 100,000 100,000 11,2.50,000 1,500,000 12,500,000 1,000,000 5,000,000 200,000 400,000 1,000,000 3,500,000 (1,000,000 5,000,000 1,000,000 200, 000 500,000 25, 000, 000 1,500.000 1,000,000 2,500,000 1,000,000 11,250,000 6,000,000 15,000,000 500,000 5,000,000 700, 000 600,000 500,000 0, 500,000 10,500,000 10.000, 000 1,000,000 2,000, 000 250,000 25,000, 000 750,000 500,000 6, 000, 000 500,000 n,2i5,r,8 *v u **- 342,002 700 53,019, )> 270,912 5v) 17,osi,72) 112, 77».,n)4 7, 3)7, Us 9,125,8*;) 14,725.138 1*7 398, 608 201,900,0'r, 210, !7i,500 ll,3N3,On 25 430,95. ?>, 8 1 7 , 1 ^ 600,70o, >j.) 52,30! , 0 2 , 22,0)8,81 ) 125, "39, " 8 . 17, ' ! > 7H} 220 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. Surplus. Total resources. 000.000 000,000 200,000 200,000 000,000 500,000 000,000 000,000 000,000 500,000 200,000 300,000 100,000 100,000 182,200 50,000 50,000 300,000 500,000 300,000 300,000 25,000 $1,000,000 4,000,000 400,000 200,000 10,000,000 800,000 1,500,000 12,000,000 4:000,000 600,000 400,000 300,000 25,000 25,000 107, 540 50,000 50,000 60,000 500,000 60,000 62,500 15,000 $44,677/887 51,414,450 10,315,815 5,894,857 112,494,281 21,636,890 33,691,285 53,324,391 83,694,904 7,109,146 9,708,828 7,279,825 1,876,195 1,249,467 3,158,406 1,332,624 1,284,918 2,140,479 15,803,732 3,277,875 6,486,682 390,553 734,073 500,000 ,000,000 25,000 265,036 500,000 450,000 15,000 10,071,953 17,821,127 24,372,125 335,318 500,000 250,000 600,000 100,000 400,000 25,000 100,000 400,000 250', 000 400,000 20,000 400,000 5,000 50,000 13,962,645 3,498,458 17,972,908 800,731 10,478,108 487, 615 2,986,852 Capital. DISTRICT N O . 2—Continued. NEW Y O R K — c o n t i n u e d . New York—Continued. Metropolitan B a n k M e t r o p o l i t a n T r u s t Co Mutual Bank N e w N e t h e i i a n d B a n k of N e w Y o r k N e w Y o r k T r u s t Co Pacific B a n k S c a n d i n a v i a n T r u s t Co U n i t e d S t a t e s T r u s t Co. of N e w Y o r k U n i t e d S t a t e s Mortgage & T r u s t Co W . B . G r a c e & Co.'s B a n k Yorkville B a n k N i a g a r a F a l l s — P o w e r City B a n k N y a c k — R o c k l a n d C o u n t y T r u s t Co O g d e u s b u r g — S t . L a w r e n c e T r u s t Co , O n e i d a — M a d i s o n C o u n t y T r u s t & D e p o s i t Co Oyster Bay—Oyster Bay B a n k P e r r y — C i t i z e n s ' B a n k of P e r r y , N . Y , P o r t " C h c s t c r — M u t u a l T r u s t Co. of "Westchester C o u n t y . , Rochester—Alliance B a n k , R o m e — R o m e T r u s t Co S c h e n e c t a d y — S c h e n e c t a d y T r u s t Co S t o n y B r o o k — B a n k of Suffolk C o u n t y SyracuseCity B a n k S y r a c u s e T r u s t Co T r u s t & D e p o s i t Co. of O n o n d a g a T r u m a n s b u r g — S t a t e B a n k of T r u m a n sburg Utica— Citizens T r u s t Co. of U t i c a . O n e i d a C o u n t y T r u s t Co U t i c a T r u s t & D e p o s i t Co W a r s a w — T r u s t Co. of W y o m i n g C o u n t y W a t e r t o w n — N o r t h e r n N e w Y o r k T r u s t Co W e s t b u r y — B a n k of W e s t b u r v W h i t e P l a i n s — C o u n t y T r u s t Co Total. 3,366,784,468 117,391,273 D I S T R I C T N O . 3. DELAWARE. Wilmington— E q u i t a b l e T r u s t Co S e c u r i t y T r u s t & Safe D e p o s i t Co W i l m i n g t o n T r u s t Co NEW JERSEY. C a m d e n — C a m d e n Safe Deposit & T r u s t C o . Gloucester C i t y — G l o u c e s t e r C i t y T r u s t C o . . . P r i n c e t o n — P r i n c e t o n B a n k & T r u s t Co R i v e r s i d e — R i v e r s i d e T r u s t Co Swedesboro—Swedcsboro T r u s t Co PENNSYLVANIA. C h e s t e r — C a m b r i d g e T r u s t Co H a r r i s b u r g — D a u p h i n D e p o s i t T r u s t Co Haz-leton—Markle B a n k i n g & T r u s t Co ' Honesdale—Wayne County Savings B a n k Lykens—Miners Deposit B a n k PhiladelphiaB a n k of C o m m e r c e Colonial T r u s t Co C o m m e r c i a l T r u s t Co Drovers & Merchants Bank F i d e l i t y T r u s t Co G i r a r d T r u s t Co L o g a n T r u s t Co. of P h i l a d e l p h i a . P e n n s y l v a n i a Co. for I n s u r a n c e o n L i v e s a n d G r a n t i n g A n n u i t i e s P h i l a d e l p h i a T r u s t Co P r o v i d e n t Life & T r u s t Co R i t t e n h o u s e T r u s t Co W e s t P h i l a d e l p h i a T i t l e & T r u s t Co , S c r a n t o n — A m e r i c a n B a n k of C o m m e r c e Wilkes-Barre—Dime Deposit Bank Williamsport— N o r t h e r n C e n t r a l T r u s t Co S u s q u e h a n n a T r u s t & Safe D e p o s i t C o Wiiliamstown—Williams Valley Bank Total 1 500,000 600,000 1,000,000 500,000 700,000 500,000 6,130,532 6,630,074 18,433,791 500,000 100,000 100,000 100,000 IOO; ooo 800,000 25,000 150,000 11., 122,691 »928,316 2,020,327 100,000 724,576 250,000 300,000 100,000 200,000 50,000 125,000 300,000 500,000 325,000 110,000 5,650,476 4,812,171 4,359,984 3,543,460 728,455 300,000 272,725 1,000,000 200,000 5,000,000 2,500,000 1,000,000 2,000,000 1,000,000 2,000,000 250,000 500,000 312,987 200,000 140,000 272,725 1,750,000 40,000 16,000,000 7,500,000 250,000 5,000,000 4,000,000 5,000,000 50,000 500,000 34,480 150,000 2,419,583 4,874,703 23,173,337 1,165,617 62,512;027 59,007,703 11,022,856 37,352,572 31,197,336 1 17,937,572 2,583,468 7,018,684 843,294 2,156,994 500,000 400,000 50,000 150,000 300,000 45,000 3,687,086 2,984,904 469,290 ! 21,385,712 45,237,205 339,571,901 E x c l u s i v e of i n s u r a n c e assets of $96,019,988. EXHIBIT -STATE BANK 221 MEMBERSHIP, Capital, Surplus. Total resources. DTSTRTCT ISO. 4. KENTUCKY. Brooksville—Farmers Equity Bank Independence—Bank of independence . Lexington— Security Trust Co Title Guaranty & Trust Co Maysville—First Standard Bank <fc Trust Co Mount Sterling—Exchange Bank of Kentucky itichmond—State Bank & Trust Co £25,000 40,000 £12,500 8,000 $299,972 277,708 500,000 150,000 175,000 50,000 150.000 150,000 15,000 75,000 35,000 50,000 2,222,031 985,234 1,599,310 '418,050 1,149,441 500,000 300,000 200,000 500,000 250,000 100,000 10,129,377 5,678,394 4,963,506 100,000 150,000 100,000 25,000 200,000 50,000 100,000 120,000 20,000 2,750 120,000 45,000 2,646,356 3,249,412 1,337,976 258,483 3,994,897 891,372 200,000 1,400,000 1,000,000 500,000 200,000 1,000,000 2,000,000 500,000 5,718,144 14,026,373 20,323,834 11,443,095 4,000,000 2,500,000 3,000,000 500,000 1,000,000 700,000 4,000,000 2,500,000 3,030,000 1,000,000 400,000 150,000 64,441,232 61,738,413 56,601,412 16,507,570 13,636,312 6,198,450 50,000 100,000 500,000 100,000 50,000 25, W0 50,000 40, 000 150,000 25, 000 50,000 25,000 200,000 25,000 50,000 3,000 31,000 420,000 68,000 17,500 9,000 15,000 60,000 37,500 8,000 40,000 20,000 125,000 4,000 OHIO. AkronCentral Savings & Trust Co Depositors Savings & Trust Co Peoples Savings & Trust Co AllianceCity Savings Bank & Trust Co Alliance Bank Co Barbcrton—Peoples Savings <fc Banking Co Buckeye City—Commercial & Savings Bank Co Canton—Dime Savings Bank Co Chagrin Falls—Chagrin Fails Banking Co. CincinnatiBrighton Bank & Trust Co., Provident Savings Bank & Trust Co Union Savings Bank '& Trust Co Western Bank & Trust Co Cleveland*— Citizen Savings & Trust Co Cleveland Trust Co Guardian Savings & Trust Co Superior Savings & Trust Co United Banking & Savings Co Columbus—Citizens Trust & Savings Bank Cuyahoga Falls— The Citizens Bank Cuyahoga Falls Savings Bank Co Dayton—Dayton Savings & Trust Co Geneva—Gcneva Savings Bank Co Oibsonburg—Gibsonburg Banking Co — Home Banking Co Hillsboro—Hillsboro Bank & Savings Co Lodi—Lodi State Bank Mssillon—Ohio Banking & Trust Co Milan—Farmers & Citizens Banking Co. Minerva—Minerva Savings & Trust Co Minster—Minster State Bank Newark—Newark Trust Co Peninsula—Peninsula Banking Co Kossford—Rossford Savings B a n k . . St. Marys—Home Banking Co Sneneer—Spencer State Bank Steubenville—Steubefmlle Bank & Trust Co Struthers—Struthers Savings & Banking Co ToledoCommercial Savings Bank & Trust Co Guardian Trust & Savings Bank of Toledo Vermilion—Krie County Banking Co Wellington—First Wellington Bank West Lafayette—West Lafayette Bank Co West Milton—Citizens State Bank Youngstown: Dollar Savings <fc Trust Co City Trust <t Savings Bank I I ! j 100,000 25, 000 20, 000 125. 000 50;ooo "*5o."666' 50,000 351,494 1,163,346 10,426,874 1,018,990 732,743 638,009 564,770 625,130 1,640,731 421,886 1,368,347 341,468 2,430,646 230,181 183,802 924,620 150, 739 1,953,004 1,830,278 200,000 200,000 50, 000 85,000 100,000 30,000 60,000 200,000 10,000 75,000 50,000 5,000 5,328,534 4,146,437 479,254 1,178,192 1,063,170 294,138 1,500,000 ' 200,000 500,000 150,000 20,323,625 5,378,291 125,000 300,000 200,000 125, 000 200,000 125,000 300,000 50,000 100,000 40,000 50,000 300,000 15,000 300,000 1,793,493 1,418,283 1,303,191 995,119 4,523,543 1.607,373 3,677,270 700,000 500,000 2,600,000 2,600,000 1,500,003 1,000,000 200,000 200,000 2,000.000 1,000,000 1,500' 003 34,500,000 125; 000 62,500 4,740,929 22,301,879 11,480,345 3,693,991 21,075,312 130, 769,630 1,847,504 PENNSYLVANIA. Ambridge— Ambridge Savings & Trust Co Beaver—Beaver Trust Co Beaver Falls—Federal Title & Trust Co. of Beaver Falls.. Bellevue— Bellevue Realty Savings & Trust Co Erie—Security Savings & Trust Co Meadville—Crawford County Trust Co New Castle—Lawrence Savings & Trust Co PittsburghAllegheny Trust Co Colonial Trust Co Commonwealth Trust Co. of Pittsburgh Oakland Savings <fc Trust Co Pittsburgh Trust Co Union Truet Co. of Pittsburgh. , Woodlawn—Woodlawn Trust Co Total. | 31,620,000 59,098,750 585,590,840 222 AlsTXTTAL REPORT O r T H E FEDERAL EESERVE BOAED. Capital. Surplus, Total resources. DISTRICT N O . .C>. DISTRICT OF COLUMBIA. Washington—Continental Trust Co $1,000,000 .1100,000 $5,142,440 300,000 500,000 1,000,000 1,000,000 25,000 30,000 100,000 100,000 2,000,000 3,049,171 4,218,607 16, 443,811 8,135,725 327,535 354,275 100,000 525,000 100,000 100,000 1,250,000 100,000 375,000 12,000 750,000 3,201,165 5,876,808 789,578 925,700 22,545,766 200.000 100,000 100,000 100,000 125,000 100,000 78,800 75,000 100,000 75,000 100,000 40,700 100,000 50,000 6,000 65,000 50,000 25,000 3,189,556 721,778 481,542 988,180 1,135,791 * 780,629 100,000 26,140 35,000 21,000 25,000 25,000 10,500 940,323 511,880 712,338 674,886 801,540 707,104 390,204 28,000 100,000 34,000 50,000 150,000 5,000 11,000 100,000 60,000 20,000 228,331 319,560 1,145,082 590,841 798,788 600,000 220,000 500,000 110,000 7,024,199 2,097,194 200,000 219,750 200,000 300,000 2,112,894 2,951,548 400,000 40,000 100,000 1,000,000 7,500 30,000 7,321,355 254,219 1,093,407 ,376,250 6,459,140 108,983,839 MARYLAND. Baltimore* The American Bank Baltimore Commercial Bank Baltimore Trust Co Maryland Trust Co Gwyrm Oak Junction—Liberty Bank of Baltimore County Hamilton—Hamilton Bank...". .*. 5,030 10,0*30 N O R T H CAROLINA. Asheville—Battery Park Bank Charlotte—American Trust Co High Point—Bank of Commerce New Bern—New Born Banking & Trrfst Co Winston-Salem—Wachovia Bank & Trust Co SOUTH CAROLINA. Charleston—Carolina Savings Bank Cheraw—Bank of Cheraw Cheraw—Merchants & Farmers Bank Chester—Commercial Bank Darlington—Bank of Darlington Florence—Commercial and Savings Bank. Georgetown: Bank of Georgetown Peoples Bank Har tsville—Bank of Hartsville Sumter—Peoples Bank Union—Nicholson Bank & Trust Co Westminster—Westminster Bank Woodruff—Bank of Woodruff no; ooo VIRGINIA. Cambria—Cambria Bank (Inc.) Chase City—Peoples Bank & Trust Co. of Chase City Christiansburg—Bank of Christiansburg * EmpDria—Greensville Bank • Harrisonburg—Peoples Bank of Harrisonburg (Inc.) Norfolk: Citizens Bank of Norfolk Marine Bank of Norfolk Richmond: Savings Bank of Richmond Union Bank W E S T VIRGINIA. Charleston—Kanawha Valley Bank Franklin—Franklin Bank Grafton—Grafton Banking & Trust Co Total DISTRICT N O . 6. ALABAMA. Athens—Citizens Bank & Trust Co Birmingham: American Trust & Savings Bank Birmingham Trust & Savings Co Center—Cherokee County Bank Cullman—Alabama Bank & Trust Co Eufaula—Bank of Eufaula Marion—Marion Central Bank Mobile— Merchants Bank Peoples Bank of Mobile Montgomery—Sullivan Bank & Trust Co Union Springs—American Bank 30,000 18,000 371; 194 500,000 500,000 25,000 50,000 100,000 50,000 250,000 650,000 14,000 100,000 8,186,511 13,272,696 222,943 50,000 505,135 582,325 200,000 200,000 100,000 50,003 200,000 200,000 10,000 5,000 5,242,255 5,589,593 464,441 276, 791 EXHIBIT J STATE B A ^ K MEMBERSHIP. Capital. Surplus. j Total re- D I S T R I C T N O . G—Continued., FLORIDA. Deland—Volusia County B a n k J a c k s o n v i l l e — A m e r i c a n T r u s t Co Leesburg—Leesburg State B a n k Miami—Southern B a n k & Trust Co. P l a n t City—Hillsboro State B a n k . . . Tallahassee—Exchange B a n k Tampa—Citizens B a n k & Trust C o . . Winter Park—Union State B a n k Athens—American State Bank AtlantaC e n t r a l B a n k & T r u s t Corporation Georgia Savings B a n k & T r u s t Co T r u s t Co. of Georgia B r u n s w i c k — B r u n s w i c k B a n k & T r u s t Co. C a m i l l a — B a n k of Camilla C o m m e r c e — N o r t h e a s t e r n B a n k i n g Co Hartwell—Hartwell Bank J a c k s o n — J a c k s o n B a n k i n g Co L o u i s v i l l e — B a n k of L o u i s v i l l e . . Metter—Citizens B a n k Sardis—Peoples B a n k SavannahA m e r i c a n B a n k & T r u s t Co Citizens & S o u t h e r n B a n k S a v a n n a h B a n k & T r u s t Co W e s t Point—Citizens B a n k Winder—Farmers Bank W i n t e r v i l l e — P i t t a r d B a n k i n g Co $101,000 200,000 30,000 100,000 50,000 50,000 250,000 30,000 $100,000 16,000 10,000 50,000 3,000 SCO, 000 SI,107,886 845,307 324,571 596,856 555,924 267,987 4,854,300 106,543 100,000 20,000 522,012 ,000,000 200,000 , 000,000 100,000 50,000 100,000 60,000 50,000 25,00o 30,000 23,000 300,000 100,000 1,000,000 80,000 50,000 35,000 20,000 10,000 6,000 15,000 6,000 10,898,200 1,559,160 4,162,624 1,339,793 493,476 787,068 386,758 293,623 356,142 241,862 142,212 200,000 ,WO,090 700.00n 50,000 50, • » ) 25,0-Vj 10,000 1,000,000 630,000 1,000 888,965 24,567,163 7,985,409 340,655 291,257 142,054 LOUISIANA. B a t o n R o u g e — U n i o n B a n k & T r u s t Co Gretna—Jefferson T r u s t & Savings B a n k I o t a — B a n k of I o t a New O r l e a n s A m e r i c a n B a n k & T r u s t Co C i n a l B a n k & T r u s t Co Citizens' B a n k & T r u s t Co. of L o u i s i a n a City B a n k & T r u s t Co Commercial Trust & Savings B a n k H i b e r n i a B a n k & T r u s t Co I n t e r s t a t e T r u s t & B a n k i n g Co L i b e r t y B a n k & T r u s t Co M a r i n e B a n k & T r u s t Co Metropolitan Bank New L o a d s — P o i n t e Coupee T r u s t & Savings B a n k 5t),0:,-0 25,0>>O 5,000 t 25°' (V?5 ~'589*614 243,009 2oo,ooo :,ix,o,o*:o 400,ooo 2(0 000 ,250,(>)i) ,500,000 7)0,000 2OO.000 -<''}'>, 000 l-)O,<y>0 6 V*>9 20,000 500,000 150,000 100,000 800,000 2,000,000 500,000 10,000 100,000 200,000 469,268 33,335,620 7,219,708 5,857,765 21,396,611 37,408,84.1 10,787,127 380,512 7,666,909 5..08L177 '145,547 100,000 25,000 25,009 5,000 ,362,778 'I95r183 MISSISSIPPI. Laurel—Commercial B a n k & Trust Co. S u m m i t — U n i o n B a n k of P i k e TENNESSEE. Chattanooga—Savings Bank Total 750,000 225,000 5,805,014 "40,000 10,056,760 238,500,448 25,000 50,000 100.000 80,000 25, 10, 150, 12, 515,013 3*8,944 , t;70, (37 ' 788,183 200,000 200,000 ,000, 000 , 000, 000 300, 000 , 000, 000 ', 500, 000 05, 20, 1,000, 200, .,10G,5,;9 , 199,978 ,713,418 ,517,384 ,518,106 :, 236, 400 . 282,256 DISTRICT N O . ] ILLINOIS. Auburn—Auburn State Bank B a r r i n g t o n — F i r s t S t a t e B a n k of B a r r i n g t o n . . . B l o o m i n g t o n — S t a t e B a n k of B l o o m i n g t o n Charleston—Charleston T r u s t & S a v i n g s B a n k . ChicagoAustin State B a n k C a p i t a l S t a t e Savings B a n k C e n t r a l T r u s t Co. of Illinois Chicago Savings B a n k & T r u s t Co Depositors S t a t e & S a v i n g s B a n k First Trust & Savings Bank F o r e m a n B r o s . B a n k i n g Co 5, sob; ' 500, 224 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. Capital, Surplus. Total resources. DISTRICT N O . 7—Continued. ILLINOIS—continued. Chicago—C ontinued. Illinois Trust & Savings Bank kaspar State Bank Madison & Kedzie State Bank Mechanics & Traders State Bank Mercantile Trust & Savings Bank Merchants Loan <fe Trust Co Noel State Bank Northern Trust Co North Side State Savings Bank North-Western Trust & Savings Bank Security Bank of Chicago Standard Trust & Savings Bank State Bank of Chicago Union Trust Co United States Bank of Chicago Cicero—Kirchman State Bank Des Plains—Des Plaines Bank Elmhurst—-Elmhurst State Bank Eureka—Farmers State Bank of Eureka E vans ton— Evanston Trust & Savings Bank State Bank of Evanston Geneva—State Bank of Geneva Joliet— Commercial Trust & Savings Bank of Joliet.. Joliet Trust & Savings Bank Hinsdale—Hinsdale State Bank Kewanee—Union State Savings Bank & Trust Co La Grange—La Grange State Bank Magnolia—First State Bank of Magnolia Marshall—Marshall State Bank Martinsville—Martinsville State Bank Matteson—First State Bank of Matteson Mattoon—Central Illinois Trust & Savings Bank. Moline— Moline Trust & Savings Bank Peoples Savings Bank & Trust Co State Savings Bank & Trust Co Mount Carroll—Carroll County State Bank Oak P a r k Oak Park Trust & Savings Bank Suburban Trust & Savings Bank Oswego—Oswego State Bank Shannon—State Bank of Shannon St. Charles—Stewart State Bank Sycamore—Pierce Trust <fe Savings Bank Wenona—First State Bank of Wcnona '., 000,000'$11,000,000 $118,248,231 500,000 303,000 6,922,574 200,000 50,000 2,166,710 200,000 50,000 2,114,550 250,000 50,000 4,333,545 ,000,000 9,000,000 120,103,999 300,000 100,000 3,271,125 !, 000,000 2,000,000 37,328,351 200,000 10,000 1,699,026 500,000 250,000 8,921,317 400,000 250,000 6,313,544 ,000,000 500,000 11,862,473 ,500,000 3,000,000 39,822,842 ,500,000 1,800,000 37,014,223 200,000 30,000 996,086 ioo;ooo 25,000 716,439 50,000 33,000 630,358 00,000 25,000 711,249 100,000 632,624 100,000 150,000 50,000 10,000 250,000 6,000 874,474 4,234,679 557,971 100,000 100,000 50,000 150,000 50,000 25,000 CO,000 50,000 25,000 100,000 5,000 25,000 25,000 25,000 25,000 5,000 5,000 20,000 10,000 50,000 966,743 967,704 628,496 1,310,007 1,090,337 203,462 234,986 358,664 139,490 947,232 225,000 250, 000 300,000 50,000 85,000 150,000 125,000 35,000 3,604,917 5,696,949 4,248,387 917,026 200,000 100,000 50,000 25,000 100,000 100,000 50,000 50,000 10,000 5,000 15,000 40,000 50,000 35,000 3,013,155 476,839 383,095 268,186 888 556 787,856 548,667 40,000 25;000 100,000 27,500 100,000 25,000 30,000 9,340 11,000 50,000 50,000 6,000 7,500 217,936 305,091 1,335,303 116,211 2,930,345 233,620 418,472 70,000 50,000 100,000 25,000 100,000 200,000 40,000 32,000 100,000 10,000 25,000 125,000 600,735 418,220 1,982,240 353,776 1,153,268 2,400,970 200,000 200,000 25,000 350,000 50.000 40', 000 128,000 100,000 10,500 200, 000 45,000 2,991,383 3,581,531 359,568 5,482,236 723,936 163,264 100,000 30,000 50,000 50,000 50,000 25,000 40,000 25,000 10,000 12,500 20,000 1,704,068 392,267 489,796 788,350 179,232 433,491 847,619 INDIANA. Angola—Steuben County State Bank Bargersville—Farmers State Bank Connersville—Farmers and Merchants' Trust Co.. Cromwell—Sparta State Bank Elkhart—St. Joseph Valley Bank Hillsboro—Hillsboro State Bank Jamestown—Citizens State Bank Kentland— Discount & Deposit State Bank Kent State Bank Marion—Grant Trust & Savings Co North Liberty—North Liberty State Bank Peru—Peru Trust Co Richmond—Dickinson Trust Co South B e n d American Trust Co St. Joseph Loan & Trust Co South Whitley—Gandy State Bank Terre Haute—Terre Haute Trust Co Tipton—Farmers Loan & Trust Co Winamac—First Trust & Savings Bank IOWA. Algona—County Savings Bank A It a Vista—Alta Vista Savings Bank Ames—Story County Trust <fe Savings Bank Avoca—Avoca State Bank Audubon—Iowa Savings Bank Baines City—Farmers Savings Bank Battle Creek—Battle Creek Savings Bank 8,000 45,000 EXHIBIT J STATE B A N K 225 MEMBERSHIP. Capital. Surplus. Total resources. DISTRICT N O . 7—Continued. IOWA—Continued. Bellevue—Bellevue State Bank Blairsburg—State Bank of Blairsburg Brighton—Brighton State Bank Britt—Commercial State Bank Cedar F a l l s Security Trust & Savings Bank Iowa State Savings Bank Chariton—State Savings Bank Charter Oak—Farmers State Bank Cherokee—Cherokee State Bank Clinton—Peoples Trust & Savings Bank College Springs—Farquhar Savings Bank Davenport—American Commercial Savings Bank. Decorah— Citizens Savings Bank Winnesheik County State Bank Des Moines— Bankers Trust Co Central State Bank Iowa Loan & Trust Co Elberon—Farmers State Bank Eldora—Citizens Savings Bank Elkader—Elkader State Bank EllsworthFarmers State Bank of Ellsworth State Bank of Ellsworth Fairbank—Fairbank State Bank Fairfield—Iowa State Savings Bank Fostoria—Citizens Savings Bank Garwin—Garwin State Bank Germania—Farmers & Drovers State Bank Gilbert—Gilbert Savings Bank Oilman—Citizens Savings Bank Humboldt—Peoples State Bank Jefferson—Jefferson Savings Bank Kellerton—Kellerton State Bank , Knoxville—Guaranty State Bank Leon—Farmers & Traders State Bank Lockridge—Lockridge Savings Bank Logan—State Saving^ Bank Lowden—Lowden Savings Bank Malcolm—Malcolm Savings Bank Mapleton—Mapleton Trust & Savings Bank MarshaUtown—Marshalltown State Bank Mason City—Commercial Savings Bank Mediapolis—Commercial State Bank Missouri Valley—State Sayings Bank Mondamin—Mondamin Savings Bank Monticello— Lovell State Bank Monticello State Bank Mount Ayr—Mount Ayr State Bank New Hampton—State Bank of New H a m p t o n — Newton— Citizens State Bank Jasper County Savings Bank Ogden—City State Bank Osage—Home Trust & Savings Bank Ottumwa—Ottumwa Savings Bank Perry—Peoples Trust & Savings Bank Remsen—Farmers Savings Bank Riceville—Riceville State Bank Roland—Farmers Savings Bank Royal—Home State Bank Sac City— Farmers Savings Bank Sac County State Bank Sioux City—Bankers Loan & Trust Co Sioux Center—Sioux Center State Bank Sutherland—First Savings Bank Terril—Terril Savings Bank Thompson—State Bank of Thompson Tipton—Farmers & Merchants Savings Bank Ute—State Savings Bank Vail—Farmers State Bank Wapeilo—Wapello State Savings Bank Waterloo—Waterloo Bank & Trust Co 100823°—19 15 $30,000 25,000 50,000 60,000 $10,000 5,000 25,000 50,000 $745,134 309,997 600,080 1,010,832 50,000 100,000 50,000 40,000 75,000 300,000 25,000 600,000 8,000 25,000 40,000 8,000 75,000 300,000 40,000 600,000 331,839 2,058,658 817,370 488,458 1,208,842 4,767,623 373,627 14,436,251 50,000 150,000 50,000 50,000 589,018 1,889,640 1,000,000 250,000 500,000 40,000 50,000 50,000 100,000 250,000 250,000 20,000 15,000 15,000 3,173,736 5,262,135 8,585,663 566,600 253,505 917,040 25,000 35,000 26,000 100,000 25,000 50,000 30,000 25,000 25,000 100,000 50,000 25,000 50,000 100,000 25,000 50,000 25,000 50,000 75,000 100,000 100,000 50,000 50,000 35,000 10,000 14,000 100,000 2,500 25,000 6,000 5,000 13,000 35,000 5,000 8,750 9,000 5,000 10,000 10,000 12,000 25,000 7,000 30,000 20,000 12,500 10,000 5,350 198,567 255,696 460,027 1,592,031 156,278 522,431 251,253 245,624 426,515 857,932 509,227 305,048 382,423 846,252 356, 774 518,069 405,307 511,661 683,990 2,252,845 1,236,314 610,731 517,287 290,666 200,000 200,000 100,000 50,000 100,000 200,000 15,000 40,000 1,170,944 2,349,329 701,925 649,252 60,000 100,000 50,000 50,000 100,000 50,000 50,000 25,000 35,000 25,000 12,000 50,000 5,000 25,000 30,000 10,000 10,000 10,000 1,500 485,129 1,207,921 507,383 496,694 1,405,231 330, 608 449, 995 216, 766 427,163 188,019 50,000 75,000 100,000 25,000 50,000 25,000 30,000 50, 000 50,000 50,000 30,000 200,000 20,000 75,000 8,000 5,000 2,000 1,000 8,000 15,000 15,000 8,000 8,000 50, 000 541,028 1,199,472 538,204 259,446 347,626 138,734 277,803 587,677 341,594 389,078 491,984 1, 591,951 750 226 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. Surplus. Total resources. DISTRICT N O . 7—Continued. MICHIGAN. Adrian— Adrain State Savings Bank Commercial Savings Bank., Lenawee County Savings Bank Albion— Albion State Bank Commercial* Savings Bank Alpena—Alpena County Savings Bank Ann Arbor— F arm er s & M echani cs B ank State Savings Bank ,. Armada—Farmers State Bank Bay C i t y Bay City Bank Farmers State Savings Bank Peoples Commercial <fe Savings Bank Benton Harbor—Benton Harbor State Bank Big R a p i d s Big Rapids Savings Bank Citizens State Bank Carson City—Farmers & Merchants State Bank. Cassopolis—Cass County State Bank Charlotte—Eaton County Savings Bank Chelsea—Farmers & Merchants Bank Coloma—State Bank of Coloma Coopersville—Peoples Savings Bank Davison—Davison State Bank Dearborn—Dearborn State Bank DetroitAmerican State Bank Bank of Detroit Detroit Savings Bank Central Savings Bank ][. Dime Savings Bank First State Bank of Detroit Peninsular State Bank Peoples State Bank United Savings Bank of Detroit Wayne County & Home Savings Bank Edmore—Edmore State Bank Elk Rapids—Elk Rapids State Bank Farmington—Farmington State Savings Bank.. Fenton— Commercial Savings Bank Fenton State Savings Bank FlintCitizens Commercial & Savings Bank Genesee County Savings Bank Industrial Savings Bank Union Trust & Savings Bank Flushing—Peoples State Bank Frankenmuth—Frankenmuth State Bank FremontFremont State Bank Old State Bank Grand H a v e n Grand Haven State Bank Peoples Savings Bank Grand R a p i d s City Trust & Savings Bank Commercial Savings Bank Grand Rapids Savings Bank Kent State Bank Greenville—Commercial State Savings Bank Hart—Oceana County Savings Bank Highland Park—Highland Park State Bank Hillsdale—Hillsdale State Bank HollandFirst State Bank Holland City State Bank HudsonBoies State Savings Bank Thompson Savings Bank Imlay City— Lapeer County Bank Peoples State Bank of Imlay City Ionia—State Savings Bank JacksonCentral State Bank Jackson State Savings Bank !. Union Bank $120,000 110,000 150,000 $80,000 30,000 50,000 $1,960,051 1,209,968 2,166,635 50,000 75,000 100,000 40,000 40,000 125,000 786,491 861,368 3,257,554 150,000 150,000 25/000 75,000 150,000 7,500 2,140,795 2,895,502 303,796 250,000 100,000 400,000 100,000 250,000 25,000 400,000 27,000 4,515,837 1,191,804 7,834,221 1,253,213 50,000 50,000 25,000 40,000 100,000 25,000 25,000 25,000 25,000 100,000 10,000 25,000 5,000 2,000 20,000 25,000 10,000 1,000 6,000 125,000 657,054 1,050,228 342,515 229,713 1,061,804 561,132 462,802 240,231 512,086 4,828,498 500,000 500,000 750,000 500,000 500,000 2,500,000 2,500,000 500,000 3,000,000 30,000 35,000 25,000 191,000 100,000 750,000 100,000 1.100,000 200,000 1,000,000 3,500,000 150,000 3,000,000 7,500 15,000 5,000 8,572,586 12,478,634 20,187,043 13,068,307 34,880,114 8,921,892 27,489,812 91,448,239 5,610,713 62,231,165 423, 702 340,072 364,022 25,000 25,000 10,000 10,000 364,912 468,654 150,000 500,000 250,000 100,000 25,000 50,000 190,000 300,000 250,000 150,000 15,000 15,000 3,589,801 7,692,056 5,736,115 3,641,347 '237,991 745,459 25,000 50,000 23,000 25,000 570,176 879,468 75,000 50,000 75,000 22,000 1,646,085 738, 427 200,000 300,000 400,000 500,000 50,000 40,000 1,000,000 60,000 40,000 60,000 350,000 500,000 10,000 13,000 550,000 25,000 2,661,227 2,806,549 8,560,741 10,481,693 775,471 424,315 17,850,655 1,008,504 100,000 100,000 20,000 50,000 2,065,919 1,486,671 75,000 100,000 25,000 50,000 713,080 1,448,165 50,000 50,000 100,000 10,000 10,000 100,000 1,002,295 656,026 1,533,580 100,000 100,000 400,000 26,000 100,000 100,000 1,282,716 2,220,916 5,151,345 1,000,000 EXHIBIT J 227 STATE BANK M E M B E R S H I P . Capital. Surplus. Total resources. DISTRICT N O . 7—Continued. MICHIGAN—continued. Jonesville—Grosvenor Savings Bank Lakeview— Commercial State Savings Bank Farmers & Merchants State Bank Lansing—Lansing State Savings Bank , Lapeer—Lapeer Savings Bank Lowell—City State Bank Ludington—Ludington State Bank ManchesterPeoples Bank Union Savings Bank Manistee—Manistee County Savings Bank , Marcellus—G. W. Jones Exchange Bank Marshall—Commercial Savings Bank Milan—Milan State Savings Bank Milford—First State Bank Monroe—B. Dansard & Sons State Bank of Monroe Morenci—Wakefield State Bank Mount P l e a s a n t Exchange Savings Bank Isabella County State Bank Mount Clemens—Ullrich Savings Bank Nashville—Farmers & Merchants Bank Niles—Niles City Bank Onsted—Onsted State Bank , Otsego—Citizens State Savings Bank Paw Paw—Paw Paw Savings Bank Petersburg—H. C. McLachlin & Co. State Bank Petoskey—First State Bank of Petoskey Pontiac— American Savings Bank Pontiac Savings Bank Port Huron—Federal Commercial & Savings Bank. Redford—Redford State Savings Bank Rochester—Rochester Savings Bank Rogers City—Presque Isle County Savings B a n k . . . Romeo—Romeo Savings Bank Royal O a k First Commercial State Bank Royal Oak Savings Bank St. Clair—Commercial & Savings Bank Saginaw—Bank oi' Saginaw Saline—Saline Savings Bank Saugatuck—Fruit Growers State Bank South Haven—Citizens State Bank Suttons Bay—Leeianau County Tecumseh— Lilley State Bank Tecumseh State Savings Bank Traverse City—Traverse City State Bank Warren—State Savings Bank of Warren Washington—Washington Savings Bank Williamston—Williamston State Bank $50,000 $25,000 $508,354 25,000 25,000 150,000 50,000 25,000 100,000 1,000 5,000 100,000 10,000 10,000 20,000 188,717 831 2,922,700 624,015 522,550 1,257;489 25,000 25,000 100,000 40,000 100,000 25,000 25,000 100,000 50,000 12,000 50,000 100,000 19,000 20,000 7,000 6,000 20,000 30,000 452 510 777; 801 2,160,911 487,205 1,170,070 228,553 443 119 1,798:222 102 50,000 60,000 100,000 30,000 100,000 25,000 25,000 40,000 25,000 50,000 30,000 6,000 100,000 35,000 20,000 6,000 2,500 10,000 5,000 10,000 895,811 1,077,946 1,416,580 667 588 852! 731 228;400 213, 205 375,267 406,738 934 100,000 200,000 150,000 25,000 50,000 35,000 50,000 30,800 65,000 50,000 7,500 10,000 12,000 30,000 954, 158 4,257,529 3,996,024 449,485 610,747 826,353 1,376,446 25,000 40,000 50,000 500,000 25,000 50,000 50,000 25,000 10,000 10,000 10,000 700,000 22,000 12,500 45,000 10,000 451 379 834 504 714;239 14,697,632 402,256 538,044 798. 199 330; 410 40,000 26,000 200,000 25,000 25.000 50]000 20,000 26,000 100,000 25,000 10,000 10,000 615,578 671 730 2,680 027 671 212 271 355 335.024 100,000 125,000 50,000 25,000 100,000 300,000 50,000 25,000 10,000 10,000 13,000 60,000 1,775 967 1,490,604 421 160 363;089 1,500,380 2,416,910 500,000 200,000 1,000,000 1,000,000 100,000 45,000 25,000 50,000 100,000 6,000 700,000 700,000 50,000 25,000 10,000 10,000 6,028,564 1,639.810 22,493 324 24,588;210 1,354,464 502,927 275 762 384 100,000 125,000 40,000 32,500 908, 100,000 200,000 50,000 50,000 100,000 25,000 200,000 125,000 10,000 3,734 309 2,175 576 1,519 831 490: 385 827! 448 372; 476 "WISCONSIN. Baraboo—Bank of Baraboo Burlington—Bank of Burlington Clinton—Citizens Bank Green Lake—Green Lake State Bank Kenosha—Merchants & Savings Bank Madison—Bank of Wisconsin MilwaukeeAmerican Exchange Bank Badger State Bank Marshall & Ilsley Bank Second Ward Savings Bank Mineral Point—Iowa County Bank Mosinee—State Bank of Mosinee Oakfield—Bank of Oakfield Platteville—State Bank of Platteville PlymouthPlymouth Exchange Bank State Bank of Plymouth Sheboygan— Bank of Sheboygan Citizens State Bank Sturgeon Bay—Bank of Sturgeon Bay Waupun—State Bank of Waupun Wausau—Marathon County Bank Winneconne—Union Bank of Winneconne Total 71,994,500 40,000 8,500 63,422,490 11,330,062,231 228 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. Capital. Surplus. I Total resources. DISTRICT N O . ; ARKANSAS. Blytheville—Farmers Bank & Trust Co.. Helena—Security Bank & Trust Co Jonesboro— Bank of Jonesboro Jonesboro Trust Co Little R o c k Bank of Commerce Bankers Trust Co Mercantile Trust Co Southern Trust Co Union Trust Co Texarkana—Merchants & Planters Bank. East St. Louis—Illinois State Bank Edwardsville—Citizens State & Trust Bank. Effingham—Effingham State Bank Gillespie—Gillespie Trust & Savings Bank... Greenville—State Bank of Hoiles & Sons Litchfield—Litchfield Bank & Trust Co Quincy—State Savings Loan & Trust Co $50,000 100,000 $25,000 50,000 $563,118 1,873,256- 150,000 100,000 150,000 .50,000 2,747,037 1,034,187 300,000 250,000 300,000 500,000 250,000 200,000 150,000 16,500 60,000 100,000 150,000 11,500 5,718,110 3,259,610 2,106,469 3,899,542 3,630,085 1,048,806 400,000 60.000 50,000 50,000 100,000 100,000 1,000,000 25,000 33,000 10,000 15,000 30.000 10,000 4,227,410 890,500 786,038 649,197 1,263,011 717,146 8,551,720 200,000 25,000 100,000 1,250 2,663,277 239,937 100,000 65,000 21,000 57,500 632,357 446,446 350,000 250,000 200,000 70,000 500,000 40,000 6,746,245 8,347,0231,316,781 25,000 100,000 75,000 25,000 100,000 100,000 6,000 20,000 15,000 35,000 20,000 150,000 234,528 1,182,466 206,184 290,628 718,119 1,906,544 118,000 22,500 800,000 1,000,000 500,000 400,000 6,500,000 3,500,000 2,500,000 700,000 8,492,883 1,945,829 9,758,900 19,080,575 7,659,104 14,438,345 61,728,581 40,385,975 42,862,964 11,271,713 1,500,000 350,000 500,0C0 1,800,000 1,500,000 150,000 500,000 25,316,794 5,031,688 1,827,407 23,919,018 23,825,000 20,112,250 341,615,635 50,000 25,000 100,0G0 100,000 15,000 15,000 50,000 35,000 745,406 334,413 1,262,026 1,389,192 50,000 50,0C0 25,000 50,000 50,000 10,000 10,000 50,000 1,326,851 925,121 359,887 672,989 INDIANA. Evansville—Mercantile-Commercial Bank. Paoli—Paoli State Bank KENTUCKY. Harrodsburg—State Bank & Trust Co Hickman—Farmers & Merchants Bank LouisvilleKentucky Title Savings Bank & Trust Co. Liberty Insurance Bank Owensboro—Central Trust Co MISSOURI. Bowling Green—Pike County Bank Jefferson City—Exchange Bank of Jefferson City. Lexington—Lafayette County Trust Co I/inn Creek—Camden County Bank Macon—State Exchange Bank of Macon Marshall—Wood & Houston Bank St. L o u i s American Trust Co Farmers & Merchants Trust Co Franklin Bank Liberty Bank. _ International Bank of St. Louis „ Lafayette South Side Bank of St. Louis Mercantile Trust Co Mississippi Valley Trust Co St. Louis Union Bank United States Bank _ ,000,000 200,000 600,0G0 ,500,000 500,000 800,000 i, 000, 000 ;, ooo, ooo !, 500,000 ., 000,000 TENNESSEE. MemphisBank of Commerce & Trust Co Commercial Trust & Savings Bank. Guaranty Bank & Trust Co_ Union Planters Bank & Trust Co Total., DISTRICT N O . 9. MICHIGAN. Gladstone—Gladstone State Savings Bank. Gwinn—Gwinn State Savings Bank IT on Mountain—Commercial Bank Sault Ste. Marie—Sault Savings Bank MINNESOTA. Benson—Swift County Bank Clarkfield—Clarkfleld State Bank JefEers—State Bank of letters , Lake City—Lake City Bank of Minnesota... EXHIBIT J 229 STATE BANK MEMBERSHIP. Capital. Surplus. Total resources. DISTRICT N O . 9—Continued. MINNESOTA—continued. Lewiston—Security State Bank of Lewiston... Luverne—Rock County Bank Madelia—State Bank of Madelia MinneapolisNorth American Bank St. Anthony Falls Bank Wells-Dickey Trust Co New Richland—State Bank of New Richland.. Red Wing—Bank of Pierce, Simmons & Co St. P a u l Central Bank Midland Trust & Savings Bank Peoples Bank of St. Paul South St. P a u l Drovers State Bank of South St. Paul Exchange State Bank of South St. P a u l . . . Spring V a l l e y Farmers State Bank First State Bank of Spring Valley Virginia—American Exchange Bank Westbrook—Citizens State Bank Winona— Deposit Bank Merchants Bank of Winona Willmar—Kandiyohi County Bank $25,000 25,000 50,000 $30,000 25,000 10,000 $681, 563 508, 251 752,936 200,000 300,000 500,000 50,000 125,000 200,000 •60,000 20,000 10,000 60,000 4,922,964 4,157,309 1,440,890 720,527 1,222,490 200,000 214,136 300,000 40,000 26,890 60,000 2,288,818. 292,758 2,714,406- 100,000 125,000 50,000 25,000 1,266,191 220,000 25,000 30,000 100,000 25,000 5,000 30,000 47,000 7,000 218,550 585,557 999,185 223,892 400,000 100,000 100,000 100,000 50,000 20,000 3,629,082 3,041,556 1,688,255 100,000 100,000 25,000 25,000 3,500 832,419 793,173 280, 430 50,000 50,000 50,000 3,000 12,500 195, 258 156, 295 467,472 200,000 250,000 35,000 25,000 100,000 150,000 5,000 1,000 2,303,119 4,880, 775 274,453 173,192 250,000 100,000 50,000 25,000 100,000 60, 000 30,000 250,000 1,500 15,000 5,000 5,000 15,000 6,000 3,494,988 925, 578 335,694 216,988 594,007 433, 298 348,155 50,000 100,000 25,000 25,000 50,000 10,000 15,000 5,000 5,000 622,943 2,037,987 301,701 339,556 210,500 25,000 150,000 25,000 25,000 25,000 25,000 45,000 10,500 1,045,450 2,534,861 544,010 664,606 320,810 228,163 100,000 200,000 30,000 25,000 40,000 3,000 27,500 14,000 12,000 565,915 4,980,523 424,169 268,643 1,613,951 25,000 30,000 50,000 42,000 50,000 100,000 35,000 30,000 30,000 5,000 5,000 15,000 300 2,300 25,000 15,000 7,500 5,000 266,156 340,599 845, 238 299,228 565,821 1,303, 420 605, 330 539, 359 346,341 MONTANA. Billings—Security Trust & Savings Bank Bozeman—Gallatin Trust & Savings Bank Denton—Denton State Bank DillonBeaverhead State Bank Security State Bank Hamilton—Ravalli County Bank HelenaConrad Trust & Savings Bank Union Bank & Trust Co Hingham—Hingham State Bank Inverness—Inverness State Bank Lewistown— Bank of Fergus County Empire Bank & Trust Co Lewistown State Bank Opheim—First State Bank of Opheim Sidney—Yellowstone Valley Bank & Trust Co. White Sulphur Springs—Central State B a n k . . . Wolf Point—First State Bank NORTH DAKOTA. Enderlin—Enderlin State B a n k . . . Fargo—Northern Savings B a n k . . . Hettinger—Hettinger State Bank. Noonan—Security State Bank Williston—Bank of Williston SOUTH DAKOTA. Belle Fourche—Butte County Bank Brookings—Bank of Brookings Camp Crook—Little Missouri Bank Groton—Brown County Banking Co Hecla—Farmers & Merchants State Bank. Newell—Reclamation State Bank Sioux F a l l s Commercial & Savings Bank Sioux Falls Savings Bank Stratford—First State Bank Timber Lake—Stock Growers State Bank. Webster—Security Bank of Webster 5,000 5,000 WISCONSIN. Balsam Lake—Polk County Bank Boyceville—Bank of Boyceville Ellsworth—Bank of Ellsworth Glenwood City—First State Bank , Grantsburg—First Bank of Grantsburg Merrill—Lincoln County Bank New Richmond—Bank of New Richmond. West Salem—La Crosse County Bank Whitehall—Peoples State Bank , Total. 6, 256,136 77,115,707 230 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Capital. Surplus. DISTRICT N O . 10. COLORADO. Denver— American Bank & Trust Co Denver Stock Yards Bank International Trust Co , , $500,000 250,000 500,000 $188,000 25,000 500,000 30,000 100,000 100,000 200,000 200,000 100,000 16,000 30,000 50,000 51,500 50,000 50,000 1,000,000 1,000,000 100,000 250,000 1,000,000 1,000,000 1,800 100,000 25,000 50,000 80,000 50,000 100,000 25,000 50,000 25,000 40,000 25,000 15,000 20,000 15,000 , 40,000 10,000 Chelsea—Bank of Chelsea Oklahoma City—Tradesmens State Bank. Okmulgee—Guaranty State Bank Ponca City—Security1 State Bank *50,000 200,000 100,000 100,000 5,000 25,000 11,000 10,000 5,265,000 3,209,580 33,000 30,000 40,000 6,000 25,000 5,000 100,000 30,000 30,000 25,000 25,000 40,000 3,000 50,000 10,000 4,000 50,000 40,000 12,500 11,000 $30,000 25,000 35,000 25,000 60,000 $30,000 7,500 10,000 5,000 12,000 100,000 250,000 50,000 12,000 117,500 26,000 KANSAS. Fairview—Fairview State Bank Fort Scott—Fort Scott State B a n k , . . . Hiawatha—Morrill & Janes Bank Topeka—Kansas Reserve State Bank. Wichita—Southwest State Bank Winfleld—The State Bank MISSOURI. Kansas C i t y Commerce Trust Co Fidelity Trust Co Savannah—Wells-Hine Trust Co South St. Joseph—St. Joseph Stock Yards Bank.. NEBRASKA. Chappell—Chappell State Bank David City—Butler County State Bank. Elgin—Elgin State Bank Lewellen—Bank of Lewellen Lincoln—American State Bank Neligh—Security State Bank Pender—Pender State Bank St. Edward—Farmers State Bank Wayne—State Bank of Wayne 5,000 6,000 N E W MEXICO. Aztec—Citizens Bank of Aztec OKLAHOMA. Total. DISTRICT N O . 11. Safford—Bank of Safford > Tombstone—Cochise County State Bank. LOUISIANA. Lake Providence—Lake Providence Bank. N E W MEXICO. Albuquerque—American Trust & Savings Bank.. Corona—Stockmens State Bank Lovington—First Territorial Bank Mountainair—Mountainair State Bank Portales—Security State Bank OKLAHOMA. Fort Towson—First State Bank Valliant—Farmers State Guaranty Bank. Alpine—Alpine State Bank Alto—Alto State Bank Anson—Anson State Bank A very—A very State Bank Ballinger—Ballinger State Bank & Trust Co. Beaumont— Guaranty Bank & Trust Co Texas Bank & Trust Co Beeville—Beeville Bank & Trust Co Total re~ sources. EXHIBIT J 231 STATE BANK M E M B E R S H I P . Capital. Surplus. Total resources. DISTRICT N O . 11—Continued. TEXAS—continued. Bonham— Fannin County Bank First State Bank of Bonham Bremond—First State Bank Brownfield—Brownfield State Bank Canyon—First State Bank Childress—Farmers & Mechanics State Bank Collinsville—First Guaranty State Bank Colorado—First State Bank ».. Commerce—Citizens State Bank Corsicana—First State Bank Crowell—First State Bank Cuero—First State Bank & Trust Co DallasCentral State Bank & Trust Co First State Bank of Dallas DeKalb—First State Bank Denison—Denison Bank & Trust Co Edgewood—Farmers & Merchants State Bank... El Paso— El Paso Bank & Trust Co Rio Grande Valley Bank & Trust Co Ennis—First Guaranty State Bank & Trust Co.. Flatonia—Flatonia State Bank Franklin—First State Bank Frost—Citizens State Bank Galveston—South Texas State Bank Gilmer—Gilmer State Bank Goldthwaite—Trent State Bank Graford—First State Bank Grand Prairie—First State Bank Hamlin—First State Bank Hansford—Guaranty State Bank Hereford—First State Bank & Trust Co Hillsboro—First State Bank Italy—Farmers State Bank Jacksonville— Farmers Guaranty State Bank First Guaranty State Bank. Junction—Junction State Bank Kerens—First State Bank Killeen—First State Bank Kirkland—First State Bank Ladonia—First State Bank Lamesa—First State Bank Leonard—First State Bank Lockney—Lockney State Bank Lorenzo—First State Bank Lubbock— Lubbock State Bank Security State Bank & Trust Co Memphis—"Citizens State Bank Mount Calm—First State Bank Mount Pleasant—Guaranty State Bank Nacogdoches—Commercial Guaranty State Bank Normangee—First State Bank Paducah—First State Bank Palmer—First Guaranty State Bank ParisFirst State Bank Lamar State Bank & Trust Co Pecos—Pecos Vallev State Bank Post City—First State Bank Quanah—First Guaranty State Bank Reagan—First State Bank Richardson—Citizens State Bank Rockwall—Guaranty State Bank Royse City—First State Bank Rusk—Fanners & Merchants State Bank Sabinal—First State Bank Santa Anna—First State Bank Savoy—First State Bank Shamrock—Farmers & Merchants State B a n k . . . Sinton—Bank of Commerce Snyder—First State Bank & Trust Co Stamford—First State Bank Sweetwater—Texas Bank & Trust Co Terrell—Fiist State Bank Tioga—First Guaranty State Bank Trenton—Guaranty State Bank $100,000 200,000 50,000 25,000 25,000 50,000 25,000 30,000 25,000 100,000 30,000 100,000 $50,000 100,000 10,600 25,000 2,500 40,000 6,000 300,000 400,000 50,000 100,000 35,000 31,000 100,000 200,000 500,000 100,000 40,000 30,000 25,000 125,000 50,000 50,000 25,000 40,000 25,000 25,000 50,000 150,000 25,000 2,500 15,000 20,000 38,000 $1,213,806 1,089,229 288,948 250,653 300,172 377,507 268,579 91,391 202,313 817,992 204,466 660,644 25,000 5,000 2,401,949 4,813,858 436,331 1,658,614 194,616 90,000 20,000 2,000 10,000 25,000 14,000 12,500 25,000 7,000 20,200 10,000 2,000 50,000 15,000 12,500 1,694,864 3,421,491 673,891 416,222 248,812 318,988 2,218,705 229,751 464,000 145,571 284,569 172,643 100,215 629,921 871,522 485,501 50,000 50,000 50,000 50,000 25,000 25,000 25,000 30,000 50,000 25,000 25,000 10,000 10,000 50,000 25,000 7,500 10,000 12,500 20,000 5,000 5,500 367,880 533,448 378,454 402,498 171,264 156,853 367,584 269,185 508,852 237,842 107,631 100,000 100,000 75,000 25,000 60,000 100,000 25,000 50,000 25,000 17,500 587,514 228,083 425.459 168,500 539,284 1,149,760 209,283 406.460 240,651 150,000 150,000 110,000 25,000 100,000 25,000 25,000 35,000 35,000 25,000 30,000 35,000 25,000 50,000 25,000 50,000 55,000 100,000 100,000 30,000 25,000 47,500 7,000 15,000 20,000 25,000 50,000 12,500 75,000 17,500 29,000 50,000 7,000 3,000 1,800 15,000 15,000 25,000 8,000 5,500 50,000 7,000 25,000 13,000 75,000 60,000 7,500 5,000 1,299,799 1,364,469 552, 744 88,183 616,217 136,269 256,590 354,565 425,020 366,192 243,834 179,875 240,059 362,728 335,142 236,188 380,801 365,303 825,022 208,447 an, 35i 232 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. Capital. Surplus. Total resources. DISTRICT N O . 11—Continued. TEXAS—continued. TylerGuaranty State Bank .*. Peoples Guaranty State Bank Weatherford—First State Bank "Wharton—Security Bank & Trust Co White Deer—First State Bank Winnsboro—Merchants & Planters State Bank Wolfe Citv—First State Bank Wylie—First State Bank Total $200,000 100,000 125,000 50,000 25,000 30,000 50,000 30,000 $55,000 25,000 15,000 6,000 6,848,000 2,199,600 57,301,834 500,000 100,000 4,195,679 50,000 25,000 110,000 640,000 50,000 2,500 51,000 210,000 933,448 121/873 1,524,713 5,497,499 25,000 50,000 40,000 60,000 25,000 25,000 25,000 20,000 10,000 2,000 10,000 473,623 595,117 347,519 540,396 120,888 548,740 327,173 100,000 150,000 35,000 30,000 25,000 25,000 25,000 50,000 25,000 100,000 25,000 100,000 50,000 50,000 30,000 30,000 25,000 25,000 25,000 25,000 100,000 7,500 11,000 1,000 100,000 50,000 100,000 50,000 10,000 10,000 30,000 22,000 15,000 $1,168,086 639,890 750,552 479,584 115,609 412,219 483,244 DISTRICT N O . 12. ARIZONA. Phoenix—Valley Bank CALIFORNIA. Placerville—A. Mierson Banking Co San Fernando—San Fernando Valley Savings Bank Santa Monica—Bank of Santa Monica Stockton—Farmers & Merchants Bank of Stockton. IDAHO. Ashton—Security State Bank Blackfoot—Blackfoot City Bank Cambridge—Peoples Bank Emmett—Bank of Emmett Filer—Farmers & Merchants Bank Genesee—Genesee Exchange Bank Gooding—Citizens State Bank Idaho F a l l s Anderson Bros. Bank Farmers & Merchants Bank Kimberly—Bank of Kimberly May—Union Central Bank Menan—Jefferson State Bank Meridian—Meridian State Bank Murtaugh—Bank of Murtaugh Nezperce—Union State Bank Orofino—Bank of Orofino Parma—Parma State Bank Picabo—Picabo State Bank Pocatello—Citizens Bank Potlatch—Potlatch State Bank Rexburg—Farmers & Merchants Bank Rigby—Rigby State Bank St. Anthony—St. Anthony Bank & Trust Co Star—Farmers Bank Sugar City—Fremont County Bank Sweet—Farmers & Stockgrowers Bank Victor—Victor State Bank , , , 12,500 10,000 10,000 3,500 25,000 20,000 10,000 6,000 10,000 14,000 5,000 2,000 2,074,748 1,314,325 382, 624 81,495 27,388 111, 706 81,228 307,577 274,430 652,587 80,944 1,061,866 772,964 373,895 376,611 551,434 213,763 234,623, 149,937 196,648 OREGON. Astoria—Scandinavian American Bank Enterprise—Enterprise State Bank Hood River—Butler Banking Co Joseph—First Bank of Joseph Marshfield— Bank of Southwestern Oregon Scandinavian American Bank Moro—Farmers State Bank North Portland—Live Stock State Bank Oregon City—Bank of Oregon City Portland—Ladd & Tilton Bank Redmond—Redmond Bank of Commerce Tillamook—Tillamook County Bank 10,000 5,153 1,250 20,000 50,000 1,000,000 5,000 7,000 949,209 259,082 310,080. 1,647,472 1,320,011 24,399,532. 216,563, 660,102-, 25,000 50,000 150,000 25,000 150,000 50,000 50,000 300,000 4,000 50,000 50,000 2,500 150,000 25,000 45,000 15,000 230,872> 436,801 1,605,082; 292,791 1,496,188; 539,958; 760,374 1,595,140, 48,000 45,000 23,000 25,COO 553,198: 595,043; 100,000 25,000 25,000 100,000 100,000 , 000,000 25,000 40,000 UTAH. Delta—Delta State Bank Kaysville—Barnes Banking Co Logan—Thatcher Bros. Banking Co Magna—Magna Banking Co Ogden—Ogden Savings Bank Payson—Payson Exchange Savings Bank Price—Price Commercial & Savings Bank Provo—Knight Trust & Savings Bank Richfield— James M. Peterson Bank State Bank of Sevier 2o,oeo 10,000 1,545,914: 286,23? 1,052,121 323,569 EXHIBIT J STATE BANK M E M B E R S H I P . Capital. 233 Surplus. DISTRICT N O . 12—Continued. UTAH—continued. Salt Lake City— Deseret Savings Bank Farmers & Stockgrowers Bank McCornick & Co., Bankers Utah Savings & Trust Co Walker Bros., Bankers $500,000 300,000 600,000 300,000 500,000 $300,000 20,000 120,000 20,000 100,000 25,000 50,000 100,000 150,000 50,000 25,000 25,000 100,000 60,000 25, 000 100,000 25,000 75,000 25,000 25,000 25,000 5,000 10,000 10,000 100,000 15,000 6,250 5,000 14,500 15,000 4,250 18,000 2,500 25,000 10,000 5,000 3,125 400,000 200,000 1,000,000 100,000 1,000,000 25,000 500,000 100,000 100,000 500,000 60,000 200,000 10,000 300,000 25,000 30,000 25,000 200,000 50,000 10,000 15,000 10,000 40,000 7,000 11,773,000 4,407,528 WASHINGTON. Albion—Albion State Bank Almira—Almira State Bank Centralia—Centralia State Bank Chehalis—Coffman, Dobson & Co., Bankers (Inc.) Colfax—First Savings & Trust Bank of Whitman County Enumclaw—Peoples State B ank Farmington—Bank of Farmington Hoquiam—Lumberman's Bank La Crosse—First State Bank of La Crosse Molson—Molson State Bank NoFth Yakima—Yakima Valley Bank Odessa—Farmers & Merchants Bank Port Townsend—Merchants Bank of Port Townscnd Reardan—Farmers State Bank Rosalia—Bank of Rosalia St. John—Farmers State Bank SeattleDexter Horton Trust & Savings Bank Metropolitan Bank Scandinavian American Bank South Bellingham—Northwestern State Bank of Bellingham. Spokane—Spokane & Eastern Trust Co Stanwood—Bank of Stanwood Tacoma—Fidelity Trust Co Tekoa— Citizens State Bank Tekoa State Bank Toppenish—Traders Bank Walla Walla—Farmers Savings Bank Wilbur—State Bank of Wilbur Total. Statement showing membership of State banks and trust companies in the Federal Reserve system, up to and including Dec. SI, 1918, classified by districts as to number of banks, capital, surplus, and resources. District. No. No. No. No. No. No. No. No. No. No. No. No. 1—Boston 2—New Y o r k 3—Philadelphia 4—Cleveland 5—Richmond 6—Atlanta 7—Chicago 8—St. Louis 9—Minneapolis.... 10—Kansas City 11—Dallas 12—San F r a n c i s c o . . Total Number of banks. Capital. Surplus. Total ' resources. 31 101 30 67 37 54 288 44 70 27 100 87 $27,075,000 117,391,273 21,385,712 31,620,000 9,376,250 15,840,000 71,994,500 23,825,000 6,256,136 5,265,000 6,848,000 11,773,000 $29,379,000 156,439, 846 45,237,205 59,098,750 6,459,140 10,056,760 63,422,490 20,112,250 1,945,493 3,209,580 2,199,600 4,407,528 $628,462,609 3,366,784,468 339,571,901 585,590,840 108,983,839 238,500,448 1,330,062,231 341,615,635 77,115,707 103,243,414 57,301.834 161,579,849 936 348,649,871 401,967,642 7,333,812,775 234 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Exhibit K.—FOREIGN BRANCHES AUTHORIZED. The Board has authorized the establishment of foreign branches and subbranches of national banks as follows: National City Bank, New York City: Date authorized. Buenos Aires, Argentina Sept. 2,1914 Subbranch—Monte video, Uruguay x Apr. 16,1915 Rio de Janeiro, Brazil Sept. 2,1914 Subbranches—Santos, Sao Paulo, Pernambuco, Para, and Bahia, Brazil Dec. 23,1914 Havana, Cuba Mar. 17,1915 Subbranches—Santiago, Matanzas, Cienfuegos, Guantanamo, Camaguey, Cardenas, Manzanillo, Cuba; Kingston, Jamaica; and Santo Domingo, Santo Domingo Mar. 17,1915 Subbranch at Sagua la Grande, Cuba Sept. 21,1918 Valparaiso, Chile Oct. ' 18,1915 Subbranches—Antofagasta and Santiago, Chile Oct. 18,1915 Genoa, Italy May 25,1916 Subbranches—Turin, Milan, Venice, Florence, Rome, Naples, and Palermo, Italy May 25,1916 Fetrograd, Russia July 5,1916 Subbranches—Moscow, Odessa, Warsaw, Riga, Baku, Astrakhan, Vladivostock, Sebastopol, Helsingfors, and Vilna, Russia July 5,1916 Lima, Peru July 31,1917 Subbranches—Payta, Callao, and Mollendo, Peru July 31,1917 Caracas, Venezuela July 31,1917 Subbranches—La Guayra, Porto Cabello, and Maracaybo July 31,1917 San Juan, P. R Feb. 13,1918 Subbranches—Arecibo, Mayaguez, and Ponce Feb. 13,1918 Lisbon, Portugal. Subbranch-—Oporto Dec. 11,1918 Brussels or Antwerp, Belgium. Subbranch in the other of the said two cities Dec. 11,1918 Zurich, Switzerland. Subbranches—Berne and Geneva Dec. 11,1918 First National Bank, Boston, Mass.: Buenos Aires, Argentina Jan. 29,1917 1 Made an independent branch. Dec. 3,1917. ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 235 Exhibit L.—FIDUCIARY POWERS GRANTED. List of national banks given fiduciary powers from Jan. ly 1918, to Dec. SI, 1918. DISTRICT NO. 1. Location. Connecticut: Hartford Bo New Haven.. Wallingford.. Waterbury.. Do Maine: Portland... Massachusetts: Boston Do. Do. Do. Do. Do. Fitchburg., Gardner... Lawrence. Leominster. Lynn Do. Marlborough.. New Bedford. Reading Salem Springfield. Do Do Turners Falls. Uxbridge Worcester New Hampshire: Berlin Vermont: Barre Bellows Falls. Bennington... Name of bank. Powers granted. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, and receiver. Do.i Phoenix National Bank... Do. First National Bank Guardian of estates3 and receiver and registrar of do stocks and bonds. Manufacturers National Guardian of estates and receiver. Bank. Waterburv National Bank Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, and receiver. First National Bank Canal National Bank. Assignee and receiver.1 First National B a n k . . Guardian of estates, assignee, receiver, and conservator. 3 Guardian of estates, assignee, and receiver.2 Fourth Atlantic National Bank. Do.2 Merchants National Bank, Trustee, executor, administrator, and registrar of National Union Bank stocks and bonds. Guardian of estates, assignee, and receiver.3 Second National Bank Do. 3 Webster & Atlas National Bank. Safety Fund National Do.8 Bank. Guardian of estates, receiver, guardian or trustee First National Bank under a will or instrument creating a trust for the care of property, conservator3 of the property of persons incapacitated by age. Bay State National Bank. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and receiver. Merchants National Bank. Guardian of estates, assignee, and receiver and conservator^ Central National Bank Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and receiver. Manufacturers National Guardian of estates, assignee, and receiver.3 Bank. Do.3 Peoples National B a n k . . . Mechanics National Bank, Guardian of estates, assignee, and receiver.3 First National Bank Trustee, executor, administrator, and registrar o! stocks and bonds. Merchants National Bank. Guardian of estates, assignee, and receiver.3 Chapin National Bank Executor, administrator, registrar of stocks and1 bonds, guardian of estates, assignee, and receiver. Chicopee National B a n k . . Guardian of estates, assignee, and receiver.3 Springfield National Bank Trustee and registrar of stocks and bonds. 3 Guardian of estates, assignee, and receiver. Crocker National Bank Trustee, executor, administrator, and registrar of Blackstone National Bank stocks and bonds. Guardian of estates, assignee, and receiver.3 Merchants National Bank. Trustee. City National Bank Peoples National B a n k . . Trustee, executor, and administrator. National Bank of Do. County National Bank Trustee, executor, administrator, and registrar of (formerly Bennington stocks and bonds. County National Bank). 1 Previously granted permission to act as trustee, executor, and registrar of stocks and bonds. Previously granted permission to act as trustee, executor, and administrator. Previously granted permission to act as trustee, executor, administrator, and registrar of stocks and bonds. 2 8 236 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. List of national banks given fiduciary powers from Jan. 1, 1918, to Dec. 31, 1918—Con. DISTRICT NO. 2. Name of bank. Location. Connecticut: Bridgeport Greenwich City National Bank New Jersey: Greenwich National Bank. Merchants National Bank. Morristown Union National Bank National Iron Bank Paterson Do Second National Bank Phillipsburg Phillipsburg N a t i o n a l Bank. New York: Albany Buffalo Canandaigua Canton Catskill Dunkirk Elmira Do 0 eneva Glens Falls Lockport Do Do Do Do Do Do Do Do Do Nyack Oneonta Utica Watertown Powers granted. Guardian of estates and receiver.1 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, and receiver. Trustee, executor, administrator, registrar of stocks and bonds, assignee, receiver, guardian of estates, and committee of estates of lunatics. Trustee and registrar of stocks and bonds. Registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. 2 Registrar of stocks and bonds. Guardian of estates, assignee, 1receiver and committee of 1 estates of lunatics. Do. National Commercial Bank Trustee, executor, administrator, guardian of estates, assignee, receiver and committee of estates of lunatics. 3 Manufacturers and Trad- Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver ers National Bank. and committee of estates of lunatics. Do. Canandaigua N a t i o n a l Bank. St. Lawrence County Na- Trustee, executor, administrator, guardian, assignee, tional Bank. receiver and committee of estates of lunatics. Catskill National Bank Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. Do. Second National Bank Lake Shore National Bank Do. Merchants National Bank. Trustee, executor, administrator, guardian of estates, registrar of stocks and bonds, assignee and receiver. Trustee, executor, administrator, registrar of stocks Second National Bank and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. 3 Trustee, executor, administrator, guardian of estates, assignee, receiver and committee of estates of lunatics. 3 Merchants National Bank. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. Do. N a t i o n a l Chautauqua Do. County Bank. Niagara County National Do. Bank. American Exchange NaDo. tional Bank. Atlantic National B a n k . . . Trustee, executor, administrator, guardian of estates, assignee, receiver and committee of estates 3 of lunatics. Chemical National Bank.. Do. 3 Citizens National B a n k . . . Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. First National Bank Trustee, executor, administrator, guardian of estates, assignee, receiver and committee of estates of lunatics. 3 Hanover National Bank... Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. Irving National Bank Trustee, executor, administrator, guardian of estates, assignee, receiver and committee of estates 3 of lunatics. 3 Do. Lincoln National Bank 1 Mechanics & Metals Na : Trustee, executor, administrator, registrar of stocks tional Bank. and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. 3 Do. 3 National Park Bank Do. Citizens National B a n k . . . Do. Do. Utica City National Bank. Do. Watertown National Bank 1 Previously granted permission to act as trustee, executor, administrator, and registrator of stocks and bonds. 2 Previously granted permission to act as trustee, executor, and administrator. 3 Previously granted permission to act as registrar of stocks and bonds. EXHIBIT L—FIDUCIARY POWERS GRANTED. 237 List of national banks given fiduciary -power8 from Jan. 1, 1918, to Dec. 31. 1918—Con. DISTRICT NO. 3. Name of bank. Powers granted. Swedesboro N a t i o n a l Bank. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. Do. location. New Jersey: Swedesboro. Woodbury.. Pennsylvania: Allentown.. Atglen Boyertown.. First National Bank. Merchants National Bank, Do. Atglen National Bank Trustee, executor, and administrator. Trustee, executor, administrator, and registrar of National Bank of stocks and bonds. First National Bank Trustee, executor, and administrator. Danville Do. Conestoga National Bank, Lancaster... Third National Bank Trustee, executor, administrator, guardian of esScranton tates, assignee, receiver and committee of estates of lunatics. 1 receiver and comSouth Bethlehem.. .j South Bethlehem National Guardian of estates, assignee, and Bank. mittee of estates of lunatics. 2 National Bank of Topton. Registrar of stocks and bonds. 3 Topton Wyoming National Bank . Trustee, executor, administrator, and registrar of Wilkes-Barre stocks and bonds. First National Bank Williamsport Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. Do. Western National B a n k . . . York. DISTRICT NO. 4. Kentucky: Paris Ohio: Cleveland Toledo Pennsylvania: Grove City Pittsburgh Do Washington Trustee, executor, administrator, and registrar of stocks and bonds. Union Commerce Na- Registrar of stocks and bonds. tional Bank. Northern National Bank.. Do. First National Bank Trustee. Peoples National Bank Registrar of stocks and bonds. Western National Bank... Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. Second National Bank Trustee, executor, administrator, guardian of Citizens National B a n k . . . estates, assignee, and receiver. DISTRICT NO. , Maryland: Baltimore New Windsor North Carolina: High Point South Carolina: Greenville York Virginia: Chatham Clifton Forge Harrisonburg Reedville VV est Virginia: Madison Second National B a n k . . . . Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and receiver, and committee of estates of lunatics. Trustee, executor, administrator, and registrar of stocks and bonds. Commercial National Bank Do. Fourth National Bank Do. Do. do do do.. Commonwealth National Bank. Peoples National Bank Trustee, executor, and administrator. Trustee, executor, administrator, registrar of stocks and bonds, guradian of estates' and assignee. Trustee, executor, and administrator. Do. Trustee, executor, administrator, and registrar of stocks and bonds. Madison National Bank... Trustee, executor and administrator, and registrar of stocks and bonds. 1 2 Previously granted permission to act as registrar of stocks and bonds. Previously granted permission to act as trustee, executor, administrator, and registrar of stocks and bonds. 8 Previously granted permission to act as trustee, executor, and administrator. 238 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. List of national banks given fiduciary powers from Jan. 1, 1918, to Dec. 31, 1918—Com. DISTRICT NO. 6. Location. Alabama: Seima. Florida: DeFuniak Springs. Pensaeola.. Tampa.. City National B a n k . . . Trustee, executor, administrator, and registrar of stocks and bonds. First National Bank National Bank of Commerce. Do. Registrar and Trustee of Florida State, County, and municipal bonds or bonds or notes issued by a corporation. Trustee, executor, administrator, and registrar of stocks and bonds. First National Bank Mississippi: Canton.. Dickson. Powers granted. Name of bank. Do. .do.. Citizens National B a n k . . , Trustee and registrar of stocks and bonds. DISTRICT NO. 7. Illinois: Chicago. Chillicothe. Decatur Kankakee.. Kewanee... La Salle.. Macomb. Monticello. Indiana: Dana Dublin Edinburg.. Trustee, executor, administrator, and registrar of stocks and bonds. Trustee, executor, administrator, guardian of estates, assignee, and receiver. Trustee, executor, administrator, and registrar of National Bank of. stocks and bonds. Do. City National Bank.. First National Bank. Trustee,executor,administrator,guardian of estates, . assignee, and receiver. La Salle National Bank... Trustee, executor, administrator, and registrar of stocks and bonds. Trustee, executor, administrator, guardian of esUnion National Bank tates, assignee, and receiver. Do. First National Bank First National Bank of Englewood. First National Bank .do. .do . Farmers National Bank.. New Carlisle. Newcastle— First National Bank. ....do Thornton. Winamac. Home National Bank. First National B a n k . . Iowa: Arlington. Cherokee., Everly Marshalltown. Royal Washington... Michigan: Hillsdale Port Huron. Wisconsin: Appleton... Fond du L a c . American National Bank (formerly GermanAmerican N a t i o n a l Bank.) First National Bank Trustee, executor, and administrator. Do. Trustee, executor, administrator, and registrar of stocks and bonds. Trustee, executor, and administrator. Trustee, executor, administrator, and registrar of stocks and bonds. Trustee, executor, and administrator. Trustee, executor, administrator, and registrar of stocks and bonds. Trustee, executor, and administrator. Trustee, executor, adminsitrator, registrar of stocks and bonds, guardian of estates, assignee, receiver. Do .do. Trustee, executor, and administrator. .do. Do. Citizens National B a n k . . . W a s h i n g t o n N a t i o n a l Trustee, executor, administrator, and registrar of stocks and bonds. Bank. First National Bank. .....do Do. Do. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and receiver. Do. Commercial National Bank Trustee, executor, administrator, registrar of do stocks and bonds. Citizens National B a n k . . EXHIBIT L—FIDUCIARY POWERS GRANTED. List of national banks given fiduciary powers from Jan. 1, 1918, to Dec. SI, 239 1918—Con. DISTRICT NO. 8. Arkansas: El Dorado Illinois: Citizens National B a n k . . . Trustee, executor, administrator, and registrar of stocks and bonds. Belleville do Mount Sterling Murphysboro Quincy Kentucky: Ownesboro Paducah Mississippi: Greenville Missouri: St. Louis Powers granted. Name of bank. Location. . ..do Ricker National Bank United States Bank. National Trustee, executor, administrator, guardian of estates, assignee and receiver. Trustee, executor, administrator, and registrar of stocks and bonds. Guardian of estates, assignee, and receiver.i Trustee, executor, administrator, guardian of estates, assignee, and receiver. Trustee, executor and administrator. Do. Trustee, executor, administrator, and registrar of stocks and bonds. do Third National Bank Do. DISTRICT NO. 9. Michigan: Manistique Minnesota: Duluth Montana: Billings Do Bozeman North Dakota: Forman Wisconsin: Ashland Do Barron Superior First National Bank do Trustee, executor, administrator, and registrar of stocks and bonds. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and committee of estates of lunatics. Merchants National Bank. Trustee, executor, administrator, and registrar of stocks and bonds. Montana National B a n k . . Do. Commercial National Bank Do. First National Bank Trustee, executor, and administrator. Ashland National Bank... Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and receiver. Do. Northern National Bank.. First National Bank Trustee, executor, and administrator Do. DISTRIC1* NO. 10. Colorado: Boulder Englewood Longmont Kansas: Troy Missouri: Cameron St. Joseph Nebraska: Omaha New Mexico: Las Vegas Oklahoma: Pond Creek Shawnee Tulsa Wyoming: Casper Chevenne Cody Boulder National B a n k . . . Trustee, executor, administrator, and registrar of stocks and bonds. First National Bank Do. Trustee, executor, administrator, registrar of stocks do and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics. 1 Do. American National Bank.. Commercial National Bank Trustee, executor, administrator, and registrar of stocks and bonds. First National Bank Trustee, executor, and administrator. Do. do American National Bank.. Trustee, executor, administrator, and registrar of stocks and bonds. Merchants National Bank. Do. San Miguel National Bank. Do. Farmers National Bank... Do. National Bank of Com- Trustee, executor, and administrator. merce. Central National Bank Trustee, executor, administrator, and registrar of stocks and bonds. Wyoming National Bank. Do. Stock Growers National Do. Bank. Shoshone National Bank.. Trustee and registrar of bonds. i Previously granted permission to act as trustee, executor, administrator, and registrar of stocks and Digitized forbonds. FRASER 240 ANNUAL REPOKT OF THE FEDERAL RESERVE BOARD. List of natio7ial banks given fiduciary powers from Jan. 1, 1918, to Dec. 31,1918—Con. DISTRICT NO. 11. Location. New Mexico: R oswell Texas: Amarillo Fort "Worth Sherman Wichita Falls Name of bank. First National Bank Powers granted. Trustee, executor, and administrator. do Trustee, executor, administrator, and registrar of stocks and bonds. Fort Worth National Bank Do. Commercial National Bank Trustee, executor, administrator, guardian of estates, assignee, receiver, and committee of estates of lunatics. National Bank of Com- Trustee, executor, administrator, and registrar of merce. stocks and bonds. DISTRICT NO. 12. California: Bakersneld Fresno Oakland Washington: Seattle Do First National Bank Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and receiver. Farmers National Bank... Do. Central National Bank Do. Bank of California, NaDo. tional. National City Bank Walla Walla Third National Bank Trustee, executor, administrator, and registrar of stocks and bonds. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and receiver. Trustee, executor, and administrator. Exhibit M.—ACCEPTANCES TO 100 PER CENT. The following banks have been granted authority by the Federal Keserve Board to accept drafts and bills of exchange u p to 100 per cent of their capital stock and surplus: District No. 1: Hartford Aetna National Bank, Hartford, Conn. Phoenix National Bank, Hartford, Conn. Beacon Trust Company, Boston, Mass. First National Bank, Boston, Mass. Fourth-Atlantic National Bank, Boston, Mass. Merchants National Bank, Boston, Mass. National Shawmut Bank, Boston, Mass. National Union Bank, Boston, Mass. Old Colony Trust Company, Boston, Mass. Second National Bank, Boston, Mass. State Street Trust Company, Boston, Mass. Webster & Atlas National Bank, Boston, Mass. Dedham National Bank, Dedham, Mass. Massasoit-Pocasset National Bank, Fall River, Mass. Safety Fund National Bank, Fitchburg, Mass. Mechanics National Bank, New Bedford, Mass. Springfield National Bank, Springfield, Mass. Merchants National Bank, Worcester, Mass. Blackstone Canal National Bank, Providence, R. I. Merchants National Bank, Providence, R. I. Providence National Bank, Providence, R. I. EXHIBIT M ACCEPTANCES TO 100 PER CENT. District No. 2: National Bank of New Jersey, New Brunswick, N. J. American Exchange National Bank, New York City. Atlantic National Bank, New York City. Bankers Trust Company, New York City. Bank of Manhattan Company, New York City. Bank of New York, N. A., New York City. Central Union Trust Company, New York City. Chase National Bank, New York City. Chemical National Bank, New York City. Citizens National Bank, New York City. Columbia Trust Company, New York City. Corn Exchange Bank, New York City. Equitable Trust Company, New York City. First National Bank, New York City. Franklin Trust Company, New York City. Guaranty Trust Company, New York City. Harriman National Bank, New York City. Importers & Traders National Bank, New York City. Irving National Bank, New York City. Liberty National Bank, New York City. Mechanics & Metals National Bank, New York City. Mercantile Bank of the Americas, New York City. Merchants National Bank, New York City. National Bank of Commerce, New York City. National City Bank, New York City. National Park Bank, New York City. New Netherland Bank, New York City. Scandinavian Trust Company, New York City, Seaboard National Bank, New York City. Second National Bank, New York City. U. S. Mortgage & Trust Company, New York City. W. R. Grace & Co.'s Bank, New York City. First National Bank, Utica, N. Y. District No. 3: Bank of North America, Philadelphia, Pa. Corn Exchange National Bank, Philadelphia, P a . First National Bank, Philadelphia, Pa. Fourth Street National Bank, Philadelphia, Pa. Girard National Bank, Philadelphia, Pa. Market Street National Bank, Philadelphia, Pa. Philadelphia National Bank, Philadelphia, Pa. Tradesmen's National Bank, Philadelphia, Pa. District No. 4: Fifth-Third National Bank, Cincinnati, Ohio. Cleveland Trust Company, Cleveland, Ohio. First National Bank, Cleveland, Ohio. Superior Savings & Trust Company, Cleveland, Ohio. Union Commerce National Bank, Cleveland, Ohio. Bank of Pittsburgh, Pittsburgh, Pa. First National Bank, Pittsburgh, Pa. Mellon National Bank, Pittsburgh, Pa. 100823°—19 16 241 242 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. District No. 4—Continued. Peoples National Bank, Pittsburgh, Pa. Pittsburgh Trust Company, Pittsburgh, Pa. Union Trust Company, Pittsburgh, Pa. District No. 5: Baltimore Trust Company, Baltimore, Md. Farmers & Merchants National Bank, Baltimore, Md. Merchants-Mechanics-First National Bank, Baltimore, Md. National Bank of Commerce, Baltimore, Md. National Union Bank of Maryland, Baltimore, Md. Second National Bank, Baltimore, Md. Murchison National Bank, Wilmington, N. C. Bank of Charleston, N. B. A., Charleston, S. C. Peoples National Bank, Charleston, S. C. First National Bank, Danville, Va. Merchants National Bank, Hampton, Va. Citizens Bank, Norfolk, Va. Norfolk National Bank, Norfolk, Va. Seaboard National Bank, Norfolk, Va. Virginia National Bank, Norfolk, Va. American National Bank, Richmond, Va. First National Bank, Richmond, Va. Merchants National Bank, Richmond, Va. National State and City Bank, Richmond, Va. District No. 6: Central National Bank, Albany, Ala. Farmers & Merchants National Bank, Troy, Ala. Fourth National Bank, Atlanta, Ga. American National Bank, Cordele, Ga. Fourth National Bank, Macon, Ga. Macon National Bank, Macon, Ga. National Bank of Savannah, Ga. Savannah Bank & Trust Company, Savannah, Ga. Canal Bank & Trust Company, New Orleans, La. Commercial National Bank, New Orleans, La. Commercial Trust & Savings Bank, New Orleans, La. Hibernia Bank & Trust Company, New Orleans, La. Interstate Trust & Banking Company, New Orleans, La. Marine Bank & Trust Company, New Orleans, La. New Orleans National Bank, New Orleans, La. Whitney-Central National Bank, New Orleans, La. Merchants National Bank, Vicksburg, Miss. Hamilton National Bank, Chattanooga, Tenn. District No. 7: Continental & Commercial National Bank, Chicago, 111. Corn Exchange National Bank, Chicago, 111. Drovers National Bank, Chicago, 111. First National Bank, Chicago, 111. Fort Dearborn National Bank, Chicago, 111. Harris Trust & Savings Bank, Chicago, 111. Merchants Loan & Trust Company, Chicago, 111. National Bank of the Republic, Chicago, 111. National City Bank, Chicago, 111. Union Trust Company, Chicago, 111. First National Bank, Milwaukee, Wis. EXHIBIT M ACCEPTANCES TO 100 PER CENT. District No. 8: First National Bank, Canton, Miss. Union & Planters Bank & Trust Company, Memphis, Tenn. Central State National Bank, Memphis, Tenn. Mercantile Trust Co., St. Louis, Mo. Merchants Laclede National Bank, St. Louis, Mo. Third National Bank, St. Louis, Mo. Merchants-American National Bank, St. Louis, Mo. National Bank of Commerce, St. Louis, Mo. District No. 9: First & Security National Bank, Minneapolis, Minn. Capital National Bank, St. Paul, Minn. District No. 10: First National Bank, Hutchinson, Kans. First National Bank, St. Joseph, Mo. District No. 11: First National Bank, Nogales, Ariz. American National Bank, Austin, Tex. American Exchange National Bank, Dallas, Tex. City National Bank, Dallas, Tex. Tenison National Bank, Dallas, Tex. American National Bank, Fort Worth, Tex. Fort Worth National Bank, Fort Worth, Tex. State National Bank, Honey Grove, Tex. First National Bank, Houston, Tex. Houston National Exchange Bank, Houston, Tex, South Texas Commercial National Bank, Houston, Tex. Union National Bank, Houston, Tex. First National Bank, Navasota, Tex. First National Bank, Terrell, Tex. American National Bank, Terrell, Tex. District No. 12: American National Bank, San Francisco, Cal. Anglo & London-Paris National Bank, San Francisco, Cal. Bank of California, N. A., San Francisco, Cal. Crocker National Bank, San Francisco, Cal. First National Bank, San Francisco, Cal. Wells-Fargo-Nevada National Bank, San Francisco, Cal. First National Bank, Portland, Oreg. Northwestern National Bank, Portland, Oreg. U. S. National Bank, Portland, Oreg. Dexter Horton National Bank, Seattle, Wash. First National Bank, Seattle, Wash. National Bank of Commerce of Seattle, Wash. Seaboard National Bank, Seattle, Wash. Seattle National Bank, Seattle, Wash. Spokane & Eastern Trust Co., Spokane, Wash. Old National Bank, Spokane, Wash. Exchange National Bank, Spokane, Wash. 243 244 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. Exhibit N.—PERSONNEL AND SALARIES. Salaries of officers and employees of Federal Reserve Banks. F E D E R A L R E S E R V E BANK OF BOSTON. N u m b e r of officers a n d employees. Salaries. Departments. Chairman a n d Federal Reserve agent. Governor D e p u t y governor O t h e r officers Banking department Bookkeeping department , Transit department Federal Reserve agent's department. Fiscal agency d e p a r t m e n t General Capitalissues Total 1915 1916 1917 1918 1915 1916 1917 1 1 1 1 1 1 $10,000 15,000 $10,000 20,000 $12,000 20,000 2 4 3 3 2 3 13 12 25 3 8,500 6,100 3,100 2,100 2,500 16,900 15,260 11,360 24,460 3,680 4 13 5 55 17 30 4 112 23 1 1 1 8 160 29 126 15 211 30 3 3,580 10,280 17,500 57,700 16,530 24,964 7,100 106,200 26,378 20 71 248 585 50,880 105,940 288,372 609,081 $20,000 30,000 45,000 56,200 301,648 15,360 94,480 9,520 $20,000 30,000 81,000 89,400 945,360 47,680 338,430 17,860 248,284 45,340 67,308 263,640 1918 $12,000 20,000 11,000 32,975 134,283 27,343 75,635 17,400 252,873 23,477 2,095 F E D E R A L R E S E R V E BANK OF NEW YORK. Chairman and Federal Reserve agent. Governor Deputy governor Other officers Bfvnkfng department. . . . . , Bookkeeping department Transit department Federal Reserve agent's department. Fiscal agency department: Bond issue Certificates of indebtedness Government deposit Securities Partial payment Capital issues Liberty loan committee General Total 1 1 4 47 5 9 1 1 1 6 88 10 57 6 9 73 173 1 1 2 8 287 15 108 6 1 1 4 17 892 42 446 8 213 34 52 228 $16,000 30,000 $16,000 15,000 20,000 42,000 97,552 10,700 36,480 32,800 60,588 4,620 6,430 75 91 457 5 368 22 5,510 8,460 37,440 100,960 116,660 386,350 11,720 634,230 21,540 829 2,657 155,978 246,192 970,580 3,104,830 42 j F E D E R A L R E S E R V E BANK OF P H I L A D E L P H I A . Chairman and Federal Reserve agent. Governor Other officers Banking department Bookkeeping department Transit department Federal Reserve agent's department.. Fiscal agency department General 1 1 7 143 36 33 Total. $10,000 20,000 5,000 14,400 3,300 5,880 5,976 12, $10,000 20,000 10,200 15,940 9,360 24,180 7,140 14,672 423 $10,000 20,000 21,250 34,084 18,080 47,790 8,060 23,160 16,848 $10,000 20,000 37,000 137,740 47,540 79,560 7,880 102,240 32,080 199,272 474,040 F E D E R A L RESERVE BANK OF CLEVELAND (INCLUDING P I T T S B U R G H AND CINCINNATI BRANCHES). Chairman and Federal Reserve agent. Governor Other officers Banking department Bookkeeping department Transit department Federal Reserve agent's department.. Fiscal agency department General Total. 31 1 1 6 21 15 73 5 70 19 11 129 39 169 10 203 26 211 589 1 1 $10,000 18,000 7,000 16,900 5,160 1,080 3,500 $10,000 20,000 10,750 13,430 4,380 23,370 3,780 6,900 8,040 68,540 93,750 $12,000 20,000 21,050 23,800 19,080 52,710 7,820 87,180 16,440 $15,000 20,000 48,850 155,418 35,280 130,150 16,080 321,884 22,800 765,462 245 EXHIBIT N — P E R S O N N E L AND SALARIES. Salaries of officers and employees of Federal Reserve Banks—Continued. F E D E R A L RESERVE BANK OF RICHMOND (INCLUDING BALTIMORE BRANCH O P E N E D MAR. 1, 1918). Number of officers and employees. Salaries. Departments. 1916 i 1917 1915 $10,000 10,000 5,978 12,742 4,748 2,278 945 Chairman and Federal Reserve agent. Governor Other officers Banking department Bookkeeping department Transit department Federal Reserve agent's department.. Fiscal agency department General 1916 8,819 $10,000 15,000 14,550 22,880 4,980 21,954 2,400 21,024 8,540 $10,000 15,000 16.359 76,953 9,640 59,485 7,202 54,930 36,810 72,238 121,328 286,379 $10, 000 12,000 9,428 13,956 5,520 11,599 916 i,439 Total. 1917 FEDERAL RESERVE B A N K OF ATLANTA (INCLUDING N E W ORLEANS, BIRMINGHAM, AND JACKSONVILLE BRANCHES). Chairman and Federal Reserve agent. Governor Other officers Banking department Bookkeeping department Transit department Federal Reserve agent's department.. Fiscal agency department General 3,180 4,080 $10,000 10,000 11,380 37,690 6,480 20,180 5,220 61,010 3,120 64,768 81,348 165,080 374,078 $12,000 24,000 79,000 180,910 25,100 109,160 17;120 354,370 183.800 985,460 $7,500 9,000 13,100 23,928 3,600 1,260 3,200 Total. 132 $9,000 9,000 12,060 21,828 5,100 15,900 4,380 $10,000 10,000 53,400 92,770 17,100 53,790 9,180 102,240 25,598 F E D E R A L R E S E R V E BANK OF CHICAGO. 1 1 7 36 10 61 5 166 77 Chairman and Federal Reserve agent. Governor Other officers Banking department Bookkeeping department Transit department Federal Reserve agent's department... Fiscal agent department General 1 1 18 155 24 124 11 292 189 364 Total.. $10,000 20,000 14,000 21,426 4,100 8,700 7,200 11,134 20,985 $10,000 24,000 33,500 47,880 9,520 49,280 13,800 215,930 61,130 96,560 147,105 465,040 $10,000 20,000 17,500 31,880 8,700 30,240 7,800 F E D E R A L RESERVE BANK OF ST. LOUIS (INCLUDING MEMPHIS AND LOUISVILLE BRANCHES). Chairman and Federal Reserve agent. Governor Other officers Banking department Bookkeeping department Transit department Federal Reserve agent's department.. Fiscal agency department General. Total., 53 1 1 13 117 11 60 5 126 51 $10,000 20,000 13,500 12,820 6,200 9,660 5,900 2,820 385 80,900 $10,0G0 20,000 13,500 17,180 6,260 16,140 5,900 2,820 $10,000 20,000 35,500 44,500 5,900 34,620 3,340 65,840 4,920 $10,000 20,000 55,500 123,292 12,000 57,540 7,920 132,620 47,000 91,800 224,620 465,872 246 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Salaries of officers and employees of Federal Reserve Banks—Continued. F E D E R A L R E S E R V E BANK OF MINNEAPOLIS. Number of officers and employees. Salaries. Departments. 1915 1916 1917 1918 Chairman and Federal Reserve agent. 1 1 1 1 1 1 Other officers Banking department Bookkeeping department Transit department Federal Reserve agent's department.. 1 10 3 1 3 1 14 6 29 2 20 54 Total 1915 1916 $7,500 15,000 $9,000 15,000 $10,000 18,000 3 30 6 37 2 47 1 1 1 5 71 12 78 3 95 3,000 11,940 2,460 2,000 5,520 3,500 15,850 5,540 19,460 4,080 12,500 29,120 6,040 24,040 4,580 51,180 $10,000 18,000 6,000 16,210 56,629 6,078 33,243 5,636 65,721 127 267 47,420 72,430 155,460 217,517 1917 1918 . F E D E R A L RESERVE BANK OF KANSAS CITY (INCLUDING OMAHA AND D E N V E R BRANCHES). 1 1 12 16 139 5 201 105 Chairman and Federal Reserve agent. G overnor Other officers Bookkeeping department Transit department Federal Reserve agent's department.. Fiscal agency department General Total. 40 52 153 $7, 7, 6, 6, 10, 4, $7,500 10,000 8,800 4,500 18,780 4,380 13,460 55,640 18,460 $7,500 12,500 17,400 5,340 22,960 7,680 93,190 27,020 $9,000 15,000 60,000 20,180 108,360 5,760 219,810 122,880 72,420 193,590 560,990 F E D E R A L RESERVE BANK OF DALLAS (INCLUDING E L PASO BRANCH FOR L A T T E R H A L F OF 1918). 1 1 8 113 13 86 5 162 14 Chairman and Federal Reserve agent. Governor Other officers Banking department Bookkeeping department Transit department Federal Reserve agent's department.. Fiscal agency department General Total. 31 63 $7,500 10,000 11,000 17,140 1,620 2,100 7,400 $9,000 10,000 15,000 17,760 5,100 20,760 3,700 9,060 11,680 $10,000 12,000 19,700 39,300 6,360 33,140 3,700 60,690 7,580 65,820 93,000 192,470 $10,000 12,000 38,200 136,200 12,840 74, 400 10,860 191,104 10,960 496,564 F E D E R A L RESERVE BANK OF SAN FRANCISCO (INCLUDING SPOKANE, PORTLAND, SEATTLE, AND SALT LAKE CITY BRANCHES). Chairman and Federal Reserve agent. Governor .' Other officers Banking department Bookkeeping department Transit department Federal Reserve agent's department.. Fiscal agency department General Capital issues Total. 1 1 10 77 17 31 3 122 11 22 62 1 1 18 157 27 64 10 207 41 5 $12,000 15,000 10,200 14,820 2,520 780 7,000 $12,000 15,000 12,200 30,230 4,620 11,640 1,620 1,800 4,620 64,120 $14,000 18,000 39,500 101,046 18,240 28,740 3,420 146,100 $14,000 18,000 68,280 190,560 30,960 62,940 16,224 253,140 60,320 12,600 370,026 727,024 EXHIBIT N PERSONNEL AND SALARIES. 247 SALARIES OP OFFICERS AND EMPLOYEES OF THE FEDERAL RESERVE BOARD AS OF DECEMBER 31, 1918. OFFICE OF T H E SECRETARY. J. A. Broderick, secretary L. C. Adelson, assistant secretary W. T. Chapman, assistant secretary 1 at $3,600 1 at 2,400 l a t 1,800 1 at 1,500 2 at 1,440 5 at 1,320 3 at 1,200 1 at 1,100 1 at 1,020 1 at 480 $8,400 6, 000 4, 500 3, 600 2, 400 1,800 1, 500 2, 880 6, 600 3, 600 1,100 1, 020 480 $43, 880 O F F I C E S OF M E M B E R S OF T H E Staff2 at lat 2 at 4 at lat BOARD. $2,900 2,750 2,500 1,560 1,320 5, 800 2,750 5,000 6,240 1,320 21,110 OFFICE OF G E N E R A L COUNSEL. Milton C. Elliott, general counsel Staff: 2 at $2,400 1 at 1,770 : 1 at 1,440 10, 000 4, 800 1, 770 1, 440 18, 010 D I V I S I O N OF A U D I T AND EXAMINATION. J. A. Broderick, chief examiner (secretary of Federal Reserve Board). L. C. Adelson, assistant chief examiner (assistant secretary of Federal Reserve Board). Wm. M. Imlay, fiscal agent $3, 600 Examiners: John A. Will. 5, 000 S. G. Sargent ' 5, 000 James F . Hereon 4, 200 W. W. Paddock 4, 200 W. E . Walter 4, 200 George L. Hamilton 3, 600 W. J. Donald 3, 600 —• 33,400 i Sept. 16, 1918, appointed also chief of department of examination of Federal Reserve Bank of San Francisco in addition to his duties as Federal Reserve examiner. 248 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. Assistant examiners: l a t $2,700 l a t 2,100. 2 at 2,000. 2 at 1,800. l a t 1,500. $2,700 2,100 4,000 3,600 1, 500 $13, 900 Office staff: 1 at $1,800. 2 at 1,440 2 at 1,320 1 at 1,200 lat 720 1, 800 2, 880 2,640 1, 200 720 9,240 DIVISION OF R E P O R T S AND Morris Jacobson, statistician Staff: l a t $3,000 2 at 2,250 l a t 1,920 4 at 1,800. l a t 1,560. l a t 1,520. l a t 1,500. 2 at 1,400. 7 at 1,200 l a t 1,100 4 at 1,000 lat 900 lat 840. lat 10 per week STATISTICS. 5, 400 3,000 4,500 1, 920 7,200 1,560 1,520 1,500 2,800 8,400 1,100 4,000 900 840 520 ' 45,160 D I V I S I O N OF A N A L Y S I S A N D H . Parker Willis, director Staff: l a t $2,000 l a t 1,800 2 at 1,440 l a t 1,200 l a t 1,000 720^ lat 500 3 at P a r t time employees. 400 lat 300 lat RESEARCH. 5,000 2,000 1,800 2,880 1,200 1,000 720 1,500 400 300 16, 800 EXHIBIT N PERSONNEL AND SALARIES. D I V I S I O N OF F E D E R A L R E S E R V E I S S U E A N D Williard E. Buell, chief of the division Staff: 1 at $2,020 l a t 1,440 1 at 1,320 2 at 1,080 4 at 1,020 14 at 900 • 1 at 720 D I V I S I O N OF F O R E I G N 249 REDEMPTION. $2, 750 2, 020 1,440 1, 320 2,160 4, 080 12, 600 720 — $27, 090 EXCHANGE. Frederick I. Kent, director. Staff: l a t $4,000 2 at 3,000 1 at 1,900 2 at 1,800 1 at 1,380. 1 at 1,320 2 at 1,300 17 at 1,200 1 at 1,100 2 at 1,020 11 at 1,000 2 at 960 21 at 900 5 at 840 6 at 780 2 at 750 7 at 720 3 at 600 2 at 540 1 at 480 1 at 360 .* 4,000 6, 000 1, 900 3, 600 1, 380 1, 320 2, 600 20, 400 1,100 2,040 11, 000 1, 920 18, 900 4, 200 4, 680 1, 500 5, 040 1, 800 1, 080 480 360 95,300 MESSENGERS. 1 1 6 1 at $1,100 at 1,000 at 960 at 840 1,100 1, 000 5, 760 840 , 8,700 CHARWOMEN. 3 at $312 Total 936 333,526 250 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. SALARIES OF NATIONAL BANK EXAMINERS. [Effective in the year ending Dec. 31, 1918.] Stephen L. Newnham, supervising examiner, not assigned to any Federal Reserve District $5,000 DISTRICT N O . 1—BOSTON. (394 national member banks.) Daniel C. Mulloney, chief examiner '... $6, 500 1 examiner, at $3,900; 1 examiner, at $3,600; 1 exanimer, a t $3,300; 1 examiner, at $3,000; 2 examiners, at $2,700 19, 200 25,700 DISTRICT N O . 2 — N E W Y O R K . (623 national member banks.) William P . Malburn, chief examiner 15,000 1 examiner, at $6,000; 1 examiner, at $4,500; 1 examiner, at $3,900; 2 examiners, a t $3,600; 3 examiners, at $3,300; 4 examiners, at $3,000 43, 500 58,500 DISTRICT N O . 3—PHILADELPHIA. (633 national member banks.) Edward I. Johnson, chief examiner 2 examiners, at $4,500; 1 examiner, at $3,900; 1 examiner, at $3,600; 1 examiner, at $3,300; 3 examiners, at $3,000; 1 examiner, at $2,700; 1 examiner, at $2,400 8, 500 33, 900 42,400 DISTRICT N O . 4 — C L E V E L A N D . (749 national member banks.) Silas H. L. Cooper, chief examiner 4 examiners, at $4,200; 1 examiner, at $3,900; 1 examiner, at $3,600; 1 examiner, at $3,000; 1 examiner, at $2,700; 1 examiner, at $2,400.. 8, 500 32,400 40,900 DISTRICT N O . 5—RICHMOND. (529 national member banks.) James K. Doughton, chief examiner 7, 500 1 examiner, at $6,500; 2 examiners, at $3,600; 3 examiners, at $3,300; 3 examiners, at $3,000; 1 examiner, at $2,700; 3 examiners, at $2,400 42, 500 50,000 DISTRICT N O . 6—ATLANTA. (373 national member banks.) Elmore F . Higgins, chief examiner 2 examiners, at $3,600; 1 examiner, at $3,300; 1 examiner, at $3,000; 2 examiners, at $2,700; 1 examiner, at $2,400 7, 500 21, 300 28,800 EXHIBIT N PERSONNEL AND SALARIES. 251 DISTRICT N O . 7—CHICAGO. (1,045 national member banks.) Sherrill Smith, chief examiner $12,000 1 examiner, at $5,000; 2 examiners, at $4,200; 1 examiner, at $3,900; 4 examiners, at $3,600; 4 examiners, at $3,300; 3 examiners, a t • $3,000; 1 examiner, at $2,700; 2 examiners, at $2,400 61, 400 $73, 400 DISTRICT N O . 8—ST. L O U I S . (470 national member banks.) Joseph M. Logan, chief examiner 2 examiners, at $4,200; 1 examiner, at $3,600; 1 examiner, at $3,300; 1 examiner, at $3,000; 3 examiners, at $2,700 8, 000 26, 400 34,400 DISTRICT N O . 9—MINNEAPOLIS. (797 national member banks.) Fred Brown, chief examiner 6, 500 2 examiners, at $4,200; 2 examiners, at $3,900; 2 examiners, at $3,300; 1 examiner, at $3,000; 2 examiners, at $2,700; 3 examiners, at $2,400 38,400 44,900 DISTRICT N O . 10—KANSAS CITY. (968 national member banks.) Horace R. Gaither, chief examiner 6, 500 1 examiner, at $4,200; 3 examiners, at $3,900; 1 examiner, at $3,600; 1 examiner, at $3,300; 3 examiners, at $3,000; 2 examiners, at $2,700 37, 200 43, 700 DISTRICT N O . 11—DALLAS. (632 national member banks.) Richard H. Collier, chief examiner 1 examiner, at $3,900; 1 examiner, a t $3,600; 2 examiners, at $3,300; 1 examiner, at $3,000; 2 examiners, at $2,400 7, 000 21,900 28, 900 DISTRICT N O . 12—SAN FRANCISCO. (562 national member banks.) Walter E. Wilcox, chief examiner 3 examiners, at $4,500; 4 examiners, at $3,000; 2 examiners, at $2,700; 2 examiners, at $2,400 7, 500 35, 700 43, 200 Total. 519, 800 252 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. RECAPITULATION. Examining staff: Chief examiners— At $15,000 per annum At $12,000 per annum At $8,500 per annum At $8,000 per annum At $7,500 per annum At $7,000 per annum At $6,500 per annum Total chief examiners Salaries, chief examiners Other examiners— At $6,500 per annum At $6,000 per annum At $5,000 per annum At $4,500 per annum At $4,200 per annum At $3,900 per annum At $3,600 pre annum At $3,300 per annum At $3,000 per annum At $2,700 per annum At $2,400 per annum 1 1 2 1 3 1 3 12 $101, 000 - Total other examiners Salaries, other examiners Total examing staff Total salaries 1 1 l 2 6 11 11 16 19 26 17 15 i Includes 1 supervising examiner. 125 418, 800 „ 137 519,800 EXHIBIT 0 253 DIRECTORY. Exhibit O.—DIRECTORY OP THE FEDERAL RESERVE BOARD AND FEDERAL RESERVE RANKS. FEDERAL RESERVE BOARD. W. P . G. H A R D I N G , Governor. EX OFFICIO MEMBERS. CARTER GLASS, Secretary of the Treasury, ALBERT STRAUSS, Vice Governor. Chairman. ADOLPH C. MILLER. J O H N SKELTON WILLIAMS, Comptroller of the Currency. CHARLES S. HAMLIN. J. A. E R O D E RICK, Secretary. M. C. ELLIOTT, General Counsel. L. C. ADELSON Assistant \Y. T. CHAPMAN, W. M. IMLAY, Fiscal M. JACOBSON, Agent. Statistician. Secretaries. H. P A R K E R WILLIS, Director, Division of Analysis and F. I. KENT, Director, Division Research. of Foreign Exchange. OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS. DISTRICT NO. 1—FEDERAL RESERVE BANK OF BOSTON. [Frederic H. Curtiss, chairman and Federal Reserve agent. - Vllen Hollis, deputy chairman. Chas. A. Morss, governor.] Residence. Director. Class A: Thomas P . Beal Edward S. Kennard Thos. W. Farnam." Class B : Philip R. Allen Chas. G. Washburn Edmund R. Morse Class C: Frederic H Curtiss Allen Hollis Jesse H. Metcalf jTerm expires. Rumford, Me New Haven, Conn.. Dec. 31,1921 Dec. 31,1919 East Walpole, Mass. Worcester, Mass Proctor, Vt Dec. 31,1920 Dec. 31,1921 Dec. 31,1919 Boston, Mass Concord, N. H Providence, R. I Dec. 31,1920 Dec. 21.1921 Dec. 31,1919 DISTRICT NO. 2—FEDERAL R E S E R V E BANK OF NEW YORK. [Pierre Jay, chairman and Federal Reserve agent. George Foster Peabody, deput; r chairman. Strong, jr., governor.] Class A: William Woodward R. H. Treman Charles Smith Class B : H. R. Towne W. B. Thompson L. R. P a l m e r . . . Class C.Pierre Jay George Foster Peabody W. L, Saunders Benjamin New York, N. Y Ithaca, N. Y Oneonta, N. Y Dec. 31,1919 Dec. 31,1920 Dec. 31,1921 New York, N. Y Yonkers, N. Y Croton-on-Hudson, N. Y Dec. 31,1919 Dec. 31,1920 Dec. 31,1921 New York, N. Y Lake George, N. Y New York, N. Y Dec. 31,1919 Dec. 31,1921 Dec. 31,1920 DISTRICT NO. 3—FEDERAL R E S E R V E BANK OF P H I L A D E L P H I A . [Richard L. Austin, chairman and Federal Reserve agent. H. B. Thompson, deputy chairman. Passmore, governor.] Class A: Joseph Wayne, jr Francis Douglas M. J. Murphy Class B : A. B. Johnson E. S.Stuart Chas. K. H a d d o n . . . Class C.Richard L. Austin.. H. B. Thompson Charles C. Harrison. E. P. Philadelphia, P a . . Wiikes-Barre, P a . Clarks Green, P a . . Dec. 31,1920 Dec. 31,1921 Dec. 31,1919 Philadelphia, P a . . do.. Camden, N. J Dec. 31,1919 Dec. 31,1920 Dec. 31,1921 Philadelphia, Pa. Wilmington, Del. Philadelphia, Pa. Dec. 31,1920 Dec. 31,1919 Dec. 31,1921 254 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. DISTRICT NO. 4—FEDERAL RESERVE BANK OF CLEVELAND. [D. C. Wills, chairman and Federal Reserve agent. Lyman H. Treadway, deputy chairman. E. R. Fancher, governor.] Director. Class A: W. S. Rowe 0 . N. Sams Robert Wardrop Class B : R. P. Wright John Stambaugh T. A. Combs Class Cr H. P. Wolfe Lyman H. Treadway D. C.Wills Residence. Cincinnati, Ohio Hillsboro, Ohio Pittsburgh, Pa Term expires. Dec. 31,1919 Dec. 31,1921 Dec. 31,1920 . Erie, Pa Youngstown, Ohio Lexington, Ky Dec. 31,1919 Dec. 31,1921 Dec. 31,1920 Columbus, Ohio Cleveland, Ohio do Dec. 31,1921 Dec. 31,1919 Dec. 31,1920 DISTRICT NO. 4—PITTSBURGH BRANCH OF T H E F E D E R A L RESERVE BANK OF CLEVELAND. [George De Camp, manager.] Chas. W. Brown.. James D. Callery.. T. H. Given R. B.Mellon George De Camp.. Pittsburgh, Pa. do..\ do do do Dec. 31,1919 Do. Do. Do. Do,. DISTRICT NO. 4—CINCINNATI BRANCH OF T H E F E D E R A L RESERVE BANK OF CLEVELAND. [L. W. Manning, manager.] Judson Harmon W.C.Procter W. S. Rowe L. W. Manning Cincinnati, Ohio .. ..do do do do Dec. 31,1919 Do. Do. Do. Do. DISTRICT NO. 5—FEDERAL R E S E R V E BANK OF RICHMOND. [Caldwell Hardy, chairman and Federal Reserve agent. James A. Moncure, deputy chairman. George J. Seay, governor.] Class A: J. F . B r u t o n Edwin Mann Chas. E . Rieman Class B : James F . Oyster D . R . Coker.. Edmund Strudwick Class C: James A. Moncure Caldwell Hardy Howard Bruce Wilson, N. C Bluefield, W. Va Baltimore, Md , ... . Washington, D. C Hartsville, S. C Richmond, Va Dec. 31,1919 Dec. 31,1920 Dec. 31,1921 Dec. 31,1919 Dec. 31 1920 Dec. 31^ 1921 do Dec. 31,1919 Dec. 31,1920 Dec. 31,1921 do Baltimore, Md DISTRICT NO. 5—BALTIMORE BRANCH OF T H E F E D E R A L R E S E R V E BANK OF RICHMOND. [M. M. Prentis, manager.] M. M. Prentis Chas. C. Homer William Ingle Waldo Newcomer H . B . Wilcox Baltimore, Md do do do do ^ Dec. 31,1919 Do. Do. Do. Do. EXHIBIT 0 255 DIRECTORY. DISTRICT NO. 6—FEDERAL R E S E R V E BANK OF ATLANTA. [M. B. Wellborn, chairman and Federal Reserve agent. Edward T. Brown, deputy chairman. Joseph A. McCord, governor.] Director. Residence. Class A: John K. Ottley F . W. Foote P. R. Kittles Class B: J. A. McCrary W. H. Hartford Jas. E. Zunts Class C: M. B. Wellborn Edward T. Brown W. H. Kettig Atlanta, Ga Hattiesburg, Miss Sylvania, Ga . Term expires. Dec. 31,1921 Dec. 31,1919 . . Dec. 31,1920 Decatur, Ga Nashville, Tenn New Orleans, La Annifiton, Ala Atlanta, Ga Birmingham. Ala. Dec. 31,1921 . Dec. 31,1919 Dec. 31,1920 ... Dec. 31,1920 Dec. 31,1921 Dec. 31,1919 DISTRICT NO. 6—NEW ORLEANS BRANCH OF THE FEDERAL RESERVE BANK OF ATLANTA. [James E. Zunts, chairman. P. H. Saunders, vice chairman. Marcus Walker, manager.] J. P . Butler, jr John E. Bouden, jr. P. H. Saunders Frank Roberts H. B. Lightcap A. P . Bush James E. Zunts New Orleans, La.. do do Lake Charles, La.. Jackson, Miss Mobile, Ala New Orleans, La.. Dec. 31,1919 Do. Do. Do. Do. Do. Do. DISTRICT NO. 6.—BIRMINGHAM BRANCH OF T H E F E D E R A L RESERVE BANK OF ATLANTA. [A. E. Walker, manager.] W. H. Kettig Oscar Wells T. O. Smith W. W. Crawford John H. Frye I ! \ I Birmingham, Ala. do do do do Dec. 31,1919 Do. Do. Do. Do. DISTRICT NO. 6.—JACKSONVILLE BRANCH OF T H E F E D E R A L RESERVE BANK OF ATLANTA. [Geo. R. De Saussure, manager.] Jacksonville, I'la do do do do John C. Cooper E. W. Lane Bion H. Barnett Giles L. Wilson Fulton Saussy ! ! i ' . ...j Dec. 31,1919 Do. Do. ' Do. Do. i DISTRICT NO. 7.—FEDERAL RESERVE BANK OF CHICAGO. [William. A. Heath, chairman and Federal Reserve agent. James Simpson, deputy chairman. James B. McDougal, governor.] Class A: Geo. M. Reynolds. J. B. Forgah E. L. Johnson Class B: J o h n W . Blodgett. Albert R. Erskine. A.H.Vogel Class C: Wm, A. H e a t h . . . . James Simpson E. T. Meredith.... Chicago, 111 do Waterloo, Iowa Dec. 31,1921 Dec. 31,1919 Dec. 31,1920 Grand Rapids, Mich. South Bend, Ind Milwaukee, Wis Dec. 31,1919 Dec. 31,1920 Dec. 31,1921 Evanston, 111 Chicago, 111 Des Moines, Iowa. Dec. 31,1921 Dec. 31,1920 Dec. 31,1919 256 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. DISTRICT NO. 7.—DETROIT BRANCH OF T H E F E D E R A L R E S E R V E BANK OF CHICAGO. [R. B. Locke, manager.] Director. John Ballantyne Emory W. Clark Chas. H. Hodges R. B. Locke Residence. Detroit, Mich do do do do - Term expires. Dec. 31,1919 Do. Do. Do. Do. DISTRICT NO. 8.—FEDERAL RESERVE BANK OF ST. LOUIS. [William McC. Martin, chairman and Federal Reserve agent; John W. Boehne, deputy chairman; David C. Biggs, governor.] Class A: Walker Hill J. C. Utterback Sam A.Ziegler Class B: David C. B i g g s . . . . W. B. P l u n k e t t . . . . Leroy Percy Class C: Wm. McC. Martin. John W. Boehne... C. P . J. Mooney St. Louis, Mo. Paducah, K y . Albion, 111 Dec. 31,1920 Dec. 31,1921 Dec. 31,1919 St. Louis, Mo Little Rock, Ark. Greenville, Miss.. Dec. 31,1921 Dec. 31,1919 Dec. 31,1920 St. Louis, M o . . . Evansville, Ind. Memphis, Tenn. Dec. 31,1921 Dec. 31,1920 Dec. 31,1919 DISTRICT NO. 8.—LOUISVILLE BRANCH OF THE F E D E R A L RESERVE BANK OF ST LOUIS. [W. P. Kincheloe, manager.] Geo. W. Norton W. C. Montgomery. W. P . Kincheloe.... F . M. Sackett C. E.Hoge Louisville, Ky Elizabethtown, K y . Louisville, Ky do Frankfort, Ky Dec. 31,1919 Do. Do. Do. Do. DISTRICT NO: 8 -MEMPHIS BRANCH OF THE F E D E R A L RESERVE BANK OF ST. LOUIS. [John J. Heflin, manager.] R. Brinkley Snowden. John D. McDowell John J. Heflin T.K.Riddick S. E. Ragland Memphis, Tenn. do do do do Dec. 31,1919 Do. Do. Do. Do. DISTRICT NO. 8.- -LITTLE ROCK BRANCH OF THE F E D E R A L RESERVE BANK OF ST. LOUIS. [John M. Davis, manager.] Ed. Cornish John M. Davis Moorhead Wright G.W.Rogers.. C. A. Pratt Little Rock, Ark do do do do Dec. 31,1919 Do. Do. Do. Do. DISTRICT NO. 9.—FEDERAL RESERVE BANK OF MINNEAPOLIS, [John H. Rich, chairman and Federal Reserve agent; Wm. H. Lightner, deputy chairman; Theodore Wold, governor.] Class A: E. W. Decker.. L. B. Hanna W. C. McDowell Class B: F . R. Bigelow F . P . Hixon N. B. Holter Class C: John H. Rich W. H. Lightner John W. Black Minneapolis, Minn Fargo, N. Dak Marion, N. Dak Dec. 31,1919 Dec. 31,1920 Dec. 31,1921 St. Paul, Minn La Crosse, Wis Helena, Mont Dec. 31,1919 Dec. 31,1921 Dec. 31,1920 Minneapolis, Minn St. Paul, Minn Houghton, Mich Do. Dec. 31,1921 Dec. 31,1919 EXHIBIT 0 257 DIRECTORY. DISTRICT NO. 10.—FEDERAL RESERVE BANK OF KANSAS CITY. [Asa E. Ramsay, chairman and Federal Reserve agent; F . W. Fleming, deputy chairman; J. Z. Miller, jr., governor.] Director. Class A: W. J. Bailey C. E. Burnham J. C. Mitchell Class B: T. C. Bvrne Harry W. Gibson M. L. McClurc Class C: F. W. Fleming Asa E. Ramsay R. H. Malone Residence. .- Term expires. Atchison, Kans Norfolk, Nebr Denver, Colo Dec. 31,1919 Dec. 31,1920 Dec. 31,1921 Omaha, Nebr Muskogee, Okla Kansas City, Mo Do. Dec. 31,1920 Dec. 31,1919 do do Denver, Colo Do. Dec. 31,1920 Dec. 31,1921 DISTRICT NO. 10.—DENVER BRANCH OF THE F E D E R A L RESERVE BANK OF KANSAS CITY. [C. A. Burkhardt, manager.] Denver, Colo do do do Pueblo, Colo C. C. Parks A. C. Foster C. A. Burkhardt John Evans Alva Adams Dec. 31,1919 Do. Do. Do. Do. DISTRICT NO. 10.—OMAHA BRANCH OF THE F E D E R A L RESERVE BANK OF KANSAS CITY. [O. T. Eastman, manager.] Omaha, Nebr do do Lincoln, Nebr Nebraska City, Nebr Luther Drake. J. C. McNish O. T. Eastman P.L.Hall R. O. Marnell Dec. 31,1919 Do. Do. Do. Do. DISTRICT NO. 11.—FEDERAL RESERVE BANK OF DALLAS. [W. F. Ramsey, chairman and Federal Reserve agent; W. B. Newsome, deputy chairman; R. L. Van Zandt, governor.] Class A: John T. Scott E. K. Smith B. A. McKinnev Class B :m Frank Kell J. J. Culbertson Class C; W. F. Ramsev W. B. Newsome II. O. Wooten Houston, Tex Shreveport, La Durant, Okla Dec. 31,1921 Dec. 31,1920 Dec. 31,1919 Fort Worth, Tex Wichita Falls, Tex Paris, Tex Do. Dec. 31,1921 Dec. 31,1920 Dallas, Tex do Abilene, Tex Do. Dec. 31,1921 Dec. 31,1919 DISTRICT NO. 11.—EL PASO BRANCH OF T H E F E D E R A L RESERVE BANK OF DALLAS. [Sam R. Lawder, manager.] El Paso, Tex do do do do U. S. Stewart A.F.Kerr W.W.Turney A.P.Coles 100823°—19 17 Dec. 31,1919 Do. Do. Do. Do. 258 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD, DISTRICT NO. 12—FEDERAL R E S E R V E BANK OF SAN FRANCISCO. [John Perrin, chairman and Federal Reserve agent; Walton N. Moore, deputy chairman; James K. Lynch, governor.] Director. Class A: C. K. Mcintosh J. E . Fishburn M, A. Buchan... _ Class B: A. B. 0. Dohrmann J. A. McGregor E.H.Cox Class C: John Perrin Edward E . Elliott Walton N. Moore Residence. Term expires. San Francisco, Cal Los Angeles, Cal Palo Alto, Cal Dec. 31,1919 Dec. 31,1920 Dec. 31,1921 San Francisco, Cal do do Dec. 31,1920 Dec. 31,1921 Dec. 31,1919 do Berkeley, Cal San Francisco, Cal Dec. 31,1920 Dec. 31,1919 Dec. 31,1921 DISTRICT NO. 12—PORTLAND BRANCH OF T H E F E D E R A L R E S E R V E BANK OF SAN FRANCISCO. [C. L . Lamping, acting manager.] E . A. Cookingham C. L. Lamping Nathan Strauss Portland, Oreg. do do do do Dec. 31,1919 Do. Do. Do. Do. DISTRICT NO. 12—SEATTLE BRANCH OF T H E F E D E R A L R E S E R V E BANK OF SAN FRANCISCO. [C' . J . Shepherd, manager.] M. F . Backus C. J. Shepherd C.H.Clarke Chas. E . Peabody. Seattle, Washington do do do do Dec. 31,1919 Do. Do. Do. Do. DISTRICT NO. 12—SPOKANE BRANCH OF T H E F E D E R A L R E S E R V E BANK OF SAN FRANCISCO. [Chas. A. McLean, manager.] D.W.Twohy R.L.Rutter Chas. A. McLean.. Peter McGregor... G.I.Toevs Spokane, Wash. do do do do Dec. 31,1919 Do. Do. Do. Do. DISTRICT NO. 12—SALT LAKE CITY BRANCH OF T H E F E D E R A L R E S E R V E BANK OF SAN FRANCISCO. [Chas. H. Stewart, manager.] L. H . Farnsworth... Chas. H . Stewart Chapin A. Day G.G.Wright Lafayette Hanchett. Ogden, Utah Idaho Falls, Utah Salt Lake City, Utah.. Dec. 31,1919 Do. Do. Do. Do. EXHIBIT P FEDERAL ADVISORY COUNCIL. 259 Exhibit P.—FEDERAL ADVISORY COUNCIL. District No. 1.—Daniel G. Wing, president First National Bank, Boston, Mass. District No. 2.—A. B . Hepburn, chairman advisory board, Chase National Bank, New York City. District No. 3.—L. L. Rue, president Philadelphia National Bank, Philadelphia, Pa. District No. 4.—W. S. Rowe, president First National Bank, Cincinnati, Ohio; director Federal Reserve Bank of Cleveland. District No. 5.—Joseph G. Brown, president City National Bank, Raleigh, N. C. District No. 6.—Charles A. Lyerly, president First National Bank, Chattanooga, Tenn. District No. 7.—James B . Forgan, president First National Bank, Chicago, 111.; director Federal Reserve Bank of Chicago. District No. 8.—F. O. Watts, president Third National Bank, St. Louis, Mo.; director Federal Reserve Bank of St. Louis. District No. 9.—C. T. Jaffray, president First and Security National Bank, Minneapolis, Minn. District No. 10.—E. F . Swinney, president First National Bank, Kansas City, Mo. District No. 11.—T. J. Record, president City National Bank, Paris, Tex. District No. 12.—A. L. Mills, president First National Bank Portland, Oreg. Exhibit Q.—EXPORTS OF COIN, BULLION, AND CURRENCY. Amounts of licenses granted by the Federal Reserve Board during the period Sept. 7, 1917, to Dec. 31 j 1918, covering exports from the United States of coin, bullion and currency. Gold. $25.00 54,713.00 357.50 200.00 Holland Italy Silver. $9,800.00 5,096,855.00 Si, 650,230. 66 449,185.14 Total E u r o p e . . . Other Asiatic p o i n t s . . 247,000.00 100. 00 920. 97 44,439,014.99 1,322,906.00 20,286. 41 8,708. 00 606,701.67 5,000.00 Total. $90,261.00 $111,437.00 156,172.00 7,400,961.94 2,550.00 42,041.66 200. 00 392,073.64 860,546.28 438.00 108,278.50 4,445,183.00 200,961.41 i80,675.66 263,808. 00 8,000. 00 3,893,942.00 50,263,485.63 168,203. 80 168,203. 80 46,240.00 48,369,817.23 1,707,639.30 537,500.00 3,885,315. 00 233,242,753.35 500,000. 00 1,344,143.70 357,962.50 4,328,179.76 60,500.00 55,000.00 1,020.00 56l7671. 52 48,989,054.75 3,002.50 370,747.00 2,619,288. 80 310. 00 2,785,675.52 239,914,053.87 598,790.00 2,588,406. 63 84,972.93 31,250. 00 4,833,892.26 61,500. 00 7,341,300.50 286,978,250.34 126,206.00 150,805.43 4,348,134.04 298,944,696.31 10,834. 72 22,750.00 2,570. 00 60, bob. 66 50,000.00 534,800.00 73,000.00 615,000.00 10,306.00 400.00 216,200.00 17,353.60 43.60 1,321.00 3,296.70 192.25 5.00 71,600.00 1,159.00 1,202.00 30,370. 00 17,587,731.27 285,043. 60 64,586. 00 15,554,328. 05 40,000.00 2,831,097.49 73,405. 00 250. 00 5,028,999.57 217,359.00 1,300,988.94 Ameri127,950.00 Total, S o u t h America 41,319,541.05 5,169.00 138,119.00 5,000.00 284,773.72 ' 1,310,550.00 96,173.15 70,620.00 43,081,657.92 531,074.56 55,612,647.92 32,176,449.56 i 5,420,443.63 2,300,066.85 15,184,613.32 , 14,642. 50 475. 00 13,300.00 250. 00 i 6*17.50 50,110. 83 1,400.00 10,815.88 20.00 4,150.66 33,724.95 51,445. 81 68,672,196.42 43,285,862.46 7,533,148.27 16,859,866.22 941,873. 66 237,819.10 2,806,663.45 3,108. 35 324,161.00 | 2,230,500.00 11,075.00 148,751. 00 48,900,343.82 i 57,294.05 478,940.69 48,211,192.52 4,165. 56 1,353,473.78 1,473.78 36,000.0C 1,316,000.00 150. 00 1,025,022.66 1,759,104.00 1,220. 0C 3,727.0C 728,985.00 West Indies Miscellaneous Total, Other currency. 4,501,769. 47 50,241,855.13 3,005,236.00 1,224,807.18 4,891,877.44 63,865,545.22 1,299,786.94 Other South $11,351.00 442,991.94 39,134.16 14,287.50 438. 00 80,908.50 17,506,422.95 285,000.00 695. 00 15,551,031.35 2,206,105. 24 400.00 4,342,149.57 Chile Own currency. 27,000.00 370. 00 4,445,183.00 V nited Kingdom Other European points United States currency. other 75,525,903.20 [ 13,811,120.59 71,650,760.59 16,176,219.99 2,005,178.35 179,169,182.72 Total 128,688,514.22 J351,315,999.78 176,092,752.59 17,648,005.75 11,315,809.83 K«* Ofil .0X2.17 260 EXHIBIT R AMENDMENTS TO FEDERAL RESERVE ACT. 261 Exhibit R.—AMENDMENTS TO THE FEDERAL RESERVE ACT. [ P U B L I C — N o . 218—65TH CONGRESS.] [H. R. 11283.] AN ACT To amend and reenact sections four, eleven, sixteen, nineteen, and twenty-two of the act approved December twenty-third, nineteen hundred and thirteen, and known as the Federal reserve act, and sections fifty-two hundred and eight and fifty-two hundred and nine, Revised Statutes. Be it enacted by the Senate and Hpupe of Representatives of the United States of America in Congress assembled, T h a t section four of t h e act approved December twenty-third, nineteen h u n d r e d and thirteen, known as t h e Federal reserve act, be amended and reenacted b y striking out t h a t p a r t of such section which reads as follows: "Directors of Class A and Class B shall b e chosen i n t h e following manner: " T h e chairman of t h e board of directors of the Federal reserve bank of t h e district i n which t h e bank is situated or, pending t h e appointment of such chairman, t h e organization committee shall classify t h e member banks of t h e district into three general groups or divisions. E a c h group shall contain as nearly as may be one-third of t h e aggregate number of t h e member banks of the district, and shall consist, as nearly as may be, of banks of similar capitalization. The groups shall be designated b y n u m b e r b y t h e chairman. " A t a regularly called meeting of t h e board of directors of each member bank i n t h e district i t shall elect b y ballot a district reserve elector and shall certify his name to t h e chairman of t h e board of directors of t h e Federal reserve bank of t h e district. The chairman shall make lists of t h e district reserve electors thus named b y banks i n each of t h e aforesaid three groups and shall transmit one list to each elector i n each group. " E a c h member bank shall be permitted to nominate to t h e chairman one candidate for director of Class A and one candidate for director of Class B . T h e candidates so nominated shall be listed b y t h e chairman, indicating b y whom nominated, and a copy of said list shall, within fifteen days after its completion, b e furnished b y t h e chairman to each elector. " E v e r y director shall, within fifteen days after t h e receipt of t h e said list, certify to t h e chairman his first, second, and other choices of a director of Class A and Class B, respectively, upon a preferential ballot, on a form furnished b y t h e chairman of the board of directors of t h e Federal reserve bank of t h e district. E a c h elector shall make a cross opposite t h e name of t h e first, second, and other choices for a director of Class A and for a director of Class B, b u t shall not vote more t h a n one choice for any one candidate, " and by substituting therefor t h e following: "Directors of Cla^s A and Class B shall be chosen i n t h e following manner: " T h e Federal Reserve Board shall classify t h e member banks of t h e district into three general groups or divisions, designating each group b y number. Each group shall consist as nearly as m a y be of banks of similar capitalization. E a c h member bank shall be permitted to nominate to t h e chairman of the board of directors of t h e Federal reserve bank of t h e district one candidate for director of Class A and one candidate for director of Class B . The candidates so nominated shall be listed b y t h e chairman, indicating b y whom nominated, and a copy of said list shall, within fifteen days after its completion, be furnished b y t h e chairman to each member bank. Each member b a n k b y a resolution of t h e board or b y an amendment to its by-laws shall authorize its president, cashier, or some other officer to cast t h e vote of t h e member bank in t h e elections of Class A and Class B directors. " Within fifteen days after receipt of t h e list of candidates t h e duly authorized officer of a member bank shall certify to t h e chairman his first, second, and other choices for director of Class A and Class B, respectively, upon a preferential ballot updh a form 262 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. furnished by the chairman of the board of directors of the Federal reserve bank of the district. Each such officer shall make a cross opposite the name of the first, second, and other choices for a director of Class A and for a director of Class B, but shall not vote more than one choice for any one candidate. No officer or director of a member bank shall be eligible to serve as a Class A director unless nominated and elected by banks which are members of the same group as the member bank of which he is an officer or director. " Any person who is an officer or director of more than one member bank shall not be eligible for nomination as a Class A director except by banks in the same group as the bank having the largest aggregate resources of any of those of which such person is an officer or director." SEC. 2. That section eleven (k) of the Federal reserve act be amended and reenacted to read as follows: " (k) To grant by special permit to national banks applying therefor, when not in contravention of State or local law, the right to act as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics, or in any other fiduciary capacity in which State banks, trust companies, or other corporations which come into competition with national banks are permitted to act under the laws of the State in which the national bank is located. " Whenever the laws of such State authorize or permit the exercise of any or all of the foregoing powers by State banks, trust companies, or other corporations which compete with national banks, the granting to and the exercise of such powers by national banks shall not be deemed to be in contravention of State or local law within the meaning of this act. "National banks exercising any or all of the powers enumerated in this subsection shall segregate all assets held in any fiduciary capacity from the general assets of the bank and shall keep a separate set of books and records showing in proper detail all transactions engaged in under authority of this subsection. Such books and records shall be open to inspection by the State authorities to the same extent as the books and records of corporations organized under State law which exercise fiduciary powers, but nothing in this act shall be construed as authorizing the State authprities to examine the books, records, and assets of the national bank which are not held in trust under authority of this subsection. "No national bank shall receive in its trust department deposits of current funds subject to check or the deposit of checks, drafts, bills of exchange, or other items for collection or exchange purposes. Funds deposited or held in trust by the bank awaiting investment shall be carried in a separate account and shall not be used by the bank in the conduct of its business unless it shall first set aside in the trust department United States bonds or other securities approved by the Federal Reserve Board. " I n the event of the failure of such bank the owners of the funds held in trust for investment shall have a lien on the bonds or other securities so set apart in addition to their claim against the estate of the bank. "Whenever the laws of a State require corporations acting in a fiduciary capacity to deposit securities with the State authorities for the protection of private or court trusts, national banks so acting shall be required to make similar deposits, and securities so deposited shall be held for the protection of private or court trusts as provided by the State law. "National banks in such cases shall not be required to execute the bond usually required of individuals if State corporations under similar circumstances are exempt from this requirement. "National banks shall have power to execute such bond when so required by the laws of the State. EXHIBIT R 11 AMENDMENTS TO FEDERAL RESERVE ACT. 263 I n any case in which the laws of a State require that a corporation acting as trustee, executor, administrator, or in any capacity specified i n this section, shall take an oath or make an affidavit, the president, vice president, cashier, or trust officer of such national bank may take the necessary oath or execute the necessary affidavit. " I t shall be unlawful for any national banking association to lend any officer, director, or employee any funds held i n trust under the powers conferred b y this section. Any officer, director, or employee making such loan, or to whom such loan is made, may be fined not more t h a n $5,000, or imprisoned not more than five years, or may be both fined and imprisoned, i n the discretion of the court. *' I n passing upon applications for permission to exercise the powers enumerated in this subsection, t h e Federal Reserve Board may take into consideration the amount of capital and surplus of the applying bank, whether or not such capital and surplus is sufficient under the circumstances of the case, the needs of the community to be served, and any other facts and circumstances that seem to i t proper, and may grant or refuse the application accordingly: Provided, That no permit shall be issued to a n y national banking association having a capital and surplus less than the capital and surplus required b y State law of State banks, trust companies, and corporations exercising such powers." SEC. 3. That the n i n t h paragraph of section sixteen of the Federal reserve act, as amended b y the acts approved September seventh, nineteen hundred and sixteen, and J u n e twenty-first, nineteen hundred and seventeen, be further amended and reenacted so as to read as follows: " I n order to furnish suitable notes for circulation as Federal reserve notes, the Comptroller of the Currency shall, under the direction of the Secretary of the Treasury, cause plates and dies to be engraved in the best manner to guard against counterfeits and fraudulent alterations, and shall have printed therefrom and numbered such quantities of such notes of the denominations of $5, $10, $20, $50, $100, $500, $1,000, $5,000, $10,000 as may be required to supply the Federal reserve banks. Such notes shall be in form and tenor as directed by the Secretary of the Treasury under the provisions of this act and shall bear the distinctive numbers of the several Federal reserve banks through which they are issued." S E C 4. That paragraphs (b) and (c) of section nineteen of the Federal reserve act, as amended by the acts approved August fifteenth, nineteen hundred and fourteen, and J u n e twenty-first, nineteen hundred and seventeen, be further amended and reenacted to read as follows: " ( b ) If in a reserve city, as now or hereafter defined, it shall hold and maintain with the Federal reserve bank of its district an actual net balance equal to not less than ten per centum of the aggregate amount of its demand deposits and three per centum of its time deposits: Provided, however, That if located in the outlying districts of a reserve city or in territory added to such a city b y the extension of its corporate charter, it may, upon the affirmative vote of five members of the Federal Reserve Board, hold and maintain the reserve balances specified in paragraph (a) hereof. " (c) If in a central reserve city, as now or hereafter defined, it shall hold and maintain with the Federal reserve bank of its district an actual net balance equal to not less than thirteen per centum of the aggregate amount of its demand deposits and three per centum of its time deposits: Provided, however, That if located in the outlying districts of a central reserve city or in territory added to such city b y the extension of its corporate charter, it may, upon the affirmative vote of five members of the Federal Reserve Board, hold and maintain the reserve balances specified in paragraphs (a) or (b) thereof." SEC. 5. That section twenty-two of the Federal Reserve Act, as amended b y the act of June twenty-first, nineteen hundred and seventeen, be further amended and reenacted to read as follows: 264 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. "(a) No member bank and no officer, director, or employee thereof shall hereafter make any loan or grant any gratuity to any bank examiner. Any bank officer, director, or employee violating this provision shall be deemed guilty of a misdemeanor and shall be imprisoned not exceeding one year or fined not more than $5,000, or both; and may be fined a further sum equal to the money so loaned or gratuity given. "Any examiner accepting a loan or gratuity from any bank examined by him or from an officer, director, or employee thereof shall be deemed guilty of a misdemeanor and shall be imprisoned one year or fined not more than $5,000, or both, and may be fined a further sum equal to the money so loaned or gratuity given, and shall forever thereafter be disqualified from holding office as a national bank examiner. "(b) No national bank examiner shall perform any other service for compensation while holding such office for any bank or officer, director, or employee thereof. *' No examiner, public or private, shall disclose the names of borrowers or the collateral for loans of a member bank to other than the proper officers of such bank without first having obtained the express permission in writing from the Comptroller of the Currency, or from the board of directors of such bank, except when ordered to do so by a court of competent jurisdiction, or by direction of the Congress of the United States, or of either House thereof, or any committee of Congress, or of either House duly authorized. Any bank examiner violating the provisions of this subsection shall be imprisoned not more than one year or fined not more than $5,000, or both. "(c) Except as herein provided, any officer, director, employee, or attorney of a member bank who stipulates for or receives or consents or agrees to receive any fee, commission, gift, or thing of value from any person, firm, or corporation, for procuring or endeavoring to procure for such person, firm, or corporation, or for any other person, firm, or corporation, any loan from or the purchase or discount of any paper, note, draft, check, or bill of exchange by such member bank shall be deemed guilty of a misdemeanor and shall be imprisoned not more than one year or fined not more than $5,000, or both. "(d) Any member bank may contract for, or purchase from, any of its directors, or from any firm of which any of its directors is a member, any securities or other property, when (and not otherwise) such purchase is made in the regular course of business upon terms not less favorable to the bank than those offered to others, or when such purchase is authorized by a majority of the board of directors not interested in the sale of such securities or property, such authority to be evidenced by the affirmative vote or written assent of such directors: Provided, however, That when any director, or firm of which any director is a member, acting for or on behalf of others, sells securities or other property to a member bank, the Federal Reserve Board by regulation may, in any or all cases, require a full disclosure to be made, on forms to be prescribed by it, of all commissions or other considerations received, and whenever such director or firm, acting in his or its own behalf, sells securities or other property to the bank the Federal Reserve Board, by regulation, may require a full disclosure of all profit realized from such sale. "Any member bank may sell securities or other property to any of its directors, or to a firm of which any of its directors is a member, in the regular course of business on terms not more favorable to such director or firm than those offered to others, or when such sale is authorized by a majority of the board of directors of a member bank to be evidenced by their affirmative vote or written assent: Provided, however, That nothing in this subsection contained shall be construed as authorizing member banks to purchase or sell securities or other property which such banks are not otherwise authorized by law to purchase or sell. "(e) No member bank shall pay to any director, officer, attorney, or employee a greater rate of interest on the deposits of such director, officer, attorney, or employee than that paid to other depositors on similar deposits with such member bank. EXHIBIT R AMENDMENTS TO FEDERAL RESERVE ACT. 265 " (f) If the directors or officers of any member bank shall knowingly violate or permit any of t h e agents, officers, or directors of any member bank to violate a n y of t h e provisions of this section or regulations of the board made under authority thereof, every director and officer participating in or assenting to such violation shall be held liable in his personal and individual capacity for all damages which t h e member bank, its shareholders, or any other persons shall have sustained in consequence of such violation." SEC. 7. That section fifty-two hundred and eight of the Revised Statutes as amended b y t h e act of J u l y twelfth, eighteen hundred and eighty-two, and section fifty-two hundred and nine of the Revised Statutes as amended b y the acts of April sixth, eighteen hundred and sixty-nine, and J u l y eighth, eighteen hundred and seventy, be, and the same are hereby, amended and reenacted to read as follows: " SEC. 5208. I t shall be unlawful for any officer, director, agent, or employee of any Federal reserve bank, or of any member bank as defined in t h e act of December twenty-third, nineteen hundred and thirteen, known as the Federal reserve act, to certify any check drawn upon such Federal reserve bank or member bank unless the person, firm, or corporation drawing the check has on deposit with such Federal reserve bank or member bank, at the times such check is certified, an amount of money not less t h a n the amount specified in such check. Any check so certified b y a duly authorized officer, director, agent, or employee shall be a good and valid obligation against such Federal reserve bank or member bank; b u t the act of any officer, director, agent, or employee of any such Federal reserve bank or member bank in violation of this section shall, in the discretion of the Federal Reserve Board, subject such Federal reserve bank to the penalties imposed b y section eleven, subsection (h), of the Federal reserve act, and shall subject such member bank if a national bank to t h e liabilities and proceedings on the part of the Comptroller of the Currency provided for in section fifty-two hundred and thirty-four, Revised Statutes, and shall, in the discretion of the Federal Reserve Board, subject any other member bank to the penalties imposed b y section nine of said Federal reserve act for the violation of any of the provisions of said act. Any officer, director, agent, or employee of any Federal reserve bank or member bank who shall willfully violate t h e provisions of this section, or who shall resort to any device, or receive any fictitious obligation, directly or collaterally, in order to evade the provisions thereof, or who shall certify a check before the amount thereof shall have been regularly entered to t h e credit of the drawer upon t h e books of t h e bank, shall be deemed guilty of a misdemeanor and shall, on conviction thereof in any district court of the United States, be fined not more than $5,000, or shall be imprisoned for not more than five years, or both, in the discretion of the court. " S E C . 5209. Any officer, director, agent, or employee of any Federal reserve bank, or of any member bank as defined in t h e act of December twenty-third, nineteen hundred and thirteen, known as t h e Federal reserve act, who embezzles, abstracts, or willfully misapplies any of the moneys, funds, or credits of such Federal reserve bank or member bank, or who, without authority from the directors of such Federal reserve bank or member bank, issues or puts in circulation any of the notes of such Federal reserve bank or member bank, or who, without such authority, issues or p u t s forth any certificate of deposit, draws any order or bill of exchange, makes any acceptance, assigns any note, bond, draft, bill of exchange, mortgage, judgment, or decree, or who makes any false entry in any book, report, or statement of such Federal reserve bank, or member bank, with i n t e n t i n any case to injure or defraud such Federal reserve bank or member bank, or any other company, body politic or corporate, or any individual person, or to deceive any officer of such Federal reserve bank or member bank, or the Comptroller of t h e Currency, or any agent or examiner appointed to 266 ANNUAlr REPORT OF THE FEDERAL RESERVE BOARD. examine the affairs of such Federal reserve bank or member bank, or the Federal Reserve Board; and every receiver of a national banking association who, with like intent to defraud or injure, embezzles, abstracts, purloins, or willfully misapplies any of the moneys, funds, or assets of his trust, and every person who, with like intent, aids or abets any officer, director, agent, employee, or receiver in any violation of this section shall be deemed guilty of a misdemeanor, and upon conviction thereof in any district court of the United States shall be fined not more than $5,000 or shall be imprisoned for not more than five years, or both, in the discretion of the court. "Any Federal reserve agent, or any agent or employee of such Federal reserve agent, or of the Federal Reserve Board, who embezzles, abstracts, or willfully misapplies any moneys, funds, or securities intrusted to his care, or without complying with or in violation of the provisions of the Federal reserve act, issues or puts in circulation any Federal reserve notes shall be guilty of a midemeanor and upon conviction in any district court of the United States shall be fined not more than $5,000 or imprisoned for not more than five years, or both, in the discretion of the court." Approved, September 26, 1918. PART II. REPORTS OF FEDERAL RESERVE AGENTS TO FEDERAL RESERVE BOARD. 267 DISTRICT NO. 1—BOSTON. F R E D E R I C H . CTTRTISS, Chairman and Federal Reserve Agent. INTRODUCTION. The past year, the second of the Nation's participation in the war, has produced marked changes in the character of the industrial and financial activities of the New England district. As the year progressed the increasing demands of the Government for carrying on the war have by degrees taken precedence over those for civilian purposes, so that on November 11, at the time of the signing of the armistice, the energies and resources of this community were largely directed and subservient to the successful prosecution of the war. During the year there have been placed in New England, througn the banks of the district, over $1,000,000,000 of Government securities—Treasury certificates, Liberty loans, and war-savings certificates, besides over $300,000,000 of Federal taxes collected. These loans and taxes have been financed where necessary through rediscounts with the Federal Reserve Bank of Boston. That these sums have been raised without undue financial disturbance, and t h a t the loaning rates for money have been kept steady and not unduly high is an indication of the satisfactory operations of the Federal Reserve Bank and the Federal Reserve system. Schedule 4 shows the fiscal operations of the Government during the year. FINANCIAL RESULTS OF OPERATION. The increased demands by member banks for rediscounts and loans to finance Government needs have brought large earnings to the Federal Reserve Bank. The net earnings for the year 1918 distributable, after making allowance for depreciation, amounted to $3,305,000. Dividends at the rate of 6 per cent per annum were declared on June 6, 1918, and December 5, 1918, payable to stockholding banks as of June 30, 1918, and December 31, 1918. These dividends amounted in the aggregate to $384,000. Of the surplus earnings one-half, or $1,460,500, was carried to the bank's surplus account, and an equal amount was set aside as a reserve for the payment of the franchise tax to the United States Government as required by the Federal Reserve Act. H J 269 270 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. Schedules 1 and 2 show earnings in detail as compared with the year 1917. Schedule 3 shows a comparative statement of the condition of the bank on December 31, 1917, and December 31, 1918. The important changes in the balance sheet will be referred to under the proper headings in this report, the increase in most of the items clearly indicating the enlarged activities of the bank. GENERAL BUSINESS AND BANKING CONDITIONS IN THE DISTRICT. As the year 1918 advanced the pressure of. the Government to meet war demands became increasingly heavy. Both business men and bankers were urged to give preference to industries essential to the prosecution of the war and to Government and other essential securities, and eventually the Government needs became so great t h a t Federal control was necessary. Early in January the Capital Issues Committee assumed jurisdiction over the issue of new securities, and later, through the War Industries Board and other boards, labor and material were conserved for the Government's use. Although Government regulations, price fixing, and constant demands for money have brought unusual burdens, banks and merchants have, with but few exceptions, made unprecedented profits. The competition for labor, skilled and unskilled, has also proved a serious problem and has forced wages to a plane hitherto unknown. Unrest and inefficiency of labor have been pronounced during this period, employees leaving one industry to go to another offering higher pay and refusing to remain steadily employed. Money rates, during the year, both time and demand, for commercial needs, have remained practically steady at 6 per cent, being influenced by the rates charged by the Federal Reserve Bank. Rates on loans secured by Government bonds varied from 4 | per cent to 5 per cent, being similarly influenced. Immediately after the armistice, the Government began canceling many of its war contracts, and the manufacturer was brought face to face with the readjustment of his business to a peace basis. Peace, however, found domestic business quite generally in a satisfactory state, low inventories being prevalent with the manufacturer, wholesaler, and retailer. The large amount of raw material held by the Government, the uncertainty of the future trend of demand for raw material from foreign countries, together with the prevailing high prices both for labor and material, have resulted in a considerable slowing down of industrial activities, and are causing business to await future developments before going ahead. The demand of the Government for money to settle its contracts and to support the large Army still in camps in this country and DISTRICT NO. 1—BOSTON. 271 overseas is so great t h a t the banks are being called upon continuously to subscribe to war loans and have been increasing their demands for rediscounts with the Federal Reserve Bank. I t is expected t h a t after the first of the year 1919, with the accumulation of investment money, the banks of the district will have more money to lend, but unless there should be a heavy recession in general business not looked for at the present.time rates are not expected to be materially lower until after the next Liberty loan. DISCOUNT OPERATIONS. The bulk of loan operations of the Federal Reserve Bank of Boston during the year 1918 was made up of borrowings on account of Government financing. As will be seen from the appended schedules, borrowings for commercial purposes have been comparatively small. Boston banks have become accustomed to borrow large amounts on notes secured by Government obligations for short periods, usually one day, whenever their reserve requirements necessitated temporary replenishing. The total loans of the Federal Reserve Bank at the end of 1917, including notes and acceptances rediscounted with other Federal Reserve Banks or sold with this bank's indorsement, amounted to about $120,000,000. OnFebruary 12,1918, this loan account had been reduced to about $62,000,000, and although later temporarily increased , further liquidation by member banks brought the loan account down on May 16 to about $58,000,000, which was the low point of the year. During the next few weeks the Federal Reserve Bank rediscounted for other Federal Reserve Banks, but these rediscounts never at one time exceeded $10,000,000. From May 16 to the end of the year there was a steady increase in the bank's loans, a material expansion being shown between June 27 and July 11, when $148,000,000 of redeposits in connection with the Federal taxes were withdrawn from member banks. Although the high point reached at that period was somewhat reduced, from August 17 there was a steady increase in the bank's loan account, owing to the withdrawal of Government funds deposited in connection with the Liberty loan, reaching $157,000,000 on November 1, when rediscounts were resorted to with other Federal Reserve Banks. From that time to the end of the year this bank, in order to maintain its reserve more nearly on a parity with that of the Federal Reserve system, was obliged from time to time to rediscount member bank loans, or sell acceptances to other Federal Reserve Banks. Schedule 5 shows rediscounts with other Federal Reserve Banks. The demands for accommodation from member banks, because of Government withdrawals, were very large during this period, the loans increasing to $165,000,000 on November 12, and to $168,000,000 272 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. on November 28. The latter was the highest point reached during the year. I t is estimated t h a t if there had not been recourse to other Federal Reserve Banks the loans would have reached a high point of $232,000,000 on December 13. Schedules 6 and 7 and accompanying charts contain detailed figures covering all fluctuations. TRADE ACCEPTANCES. Very satisfactory progress has been made during the past year in the use of trade acceptances by the merchants in the New England district. While it is difficult to procure accurate information as to the character of this development, the records of the Federal Reserve Bank show a large increase in the number and volume of trade acceptances t h a t have been offered for rediscount b y the member banks of the district. Trade acceptances have for the most part been received for rediscount from the out-of-town banks, the large Boston banks as a rule not being inclined to encourage their use. On the other hand, there has been a considerable increase in the different lines of trade which have found this character of financing attractive. The bank has, as in the past, maintained a differential rate in favor of the trade acceptance as compared with the ordinary commercial bill. BANKERS' ACCEPTANCES. The past year has shown a marked growth, both in number and volume, of bankers 7 acceptances created by banks in this district. While it is not practicable to show the increase in volume of acceptances created by all the banks in the district, the increase in those of national banks is shown by Schedule 8. Fully as important, however, is the satisfactory progress t h a t has been made in creating a broader market, not only for the acceptances originating in this district, b u t also for those created by banks elsewhere in the country. To encourage this distribution, during the past year, the Federal Reserve Bank has maintained differential rates between indorsed and unindorsed bills and has discouraged the direct offering of bills by the accepting banks, taking such acceptances only as rediscounts and at the discount rate ruling for other commercial paper, while at the same time holding itself open to purchase the same bills at current rates, even though unindorsed, from brokers and other banks than the accepting banks. A differential has also been maintained by the Federal Reserve Bank between indorsed and unindorsed bills, and on bills of varying maturities, encouraging the offering of short-time bills to the Federal Reserve Bank. DISTRICT NO. 1 BOSTON. 273 To encourage brokers to handle acceptances, the Federal Reserve Bank has made advances to them on acceptances with agreements to repurchase. These advances have been made on favorable terms, and this practice has also been adopted by several of the larger Boston banks. This policy has tended to distribute acceptances more freely, not only into the portfolios of large city banks, but also to out-oftown banks, both commercial and savings. The Massachusetts savings banks have taken advantage of the law passed last May which allows such investments. Frequent conferences with officials of accepting banks have not only brought about a more satisfactory character of acceptance but have also been a benefit in developing a policy which has materially broadened their market. I t would appear desirable to have a policy adopted by Federal Reserve Banks with reference to bankers' acceptances, so t h a t on the date of payment the proceeds would be available as reserve funds by the holding bank. During the year the number of accepting national banks has increased from 32 to 40 and, as will be seen by Schedule 10, six additional banks have been given the special privilege of accepting up to 100 per cent of their capital and surplus. UNITED STATES SECURITIES. The holdings of United States securities have shown several changes during the year. Early in the year member banks, having purchased certificates of indebtedness and wishing to obtain funds for short periods, sold small amounts to this bank with their agreement to repurchase, but after a few months the practice was discontinued. I n connection with the handling of subscriptions to the first Liberty loan, there was allotted to this bank $2,600,000 of 3 J per cent bonds in excess of the subscriptions received. On June 29, 1918, on vote of the directors of the bank, these were taken over from the Treasury Department and paid for. On July 8, $2,000,000 were sold to the War Finance Corporation. During the balance of the year, several sales were made until the bank had disposed of its entire holdings. Several small amounts of Liberty loan bonds of different issues were taken over by the bank from one source or another, until at the end of the year our holdings, exclusive of bonds sold on the installment plan, amounted to about $8,000. There were also $529,000 conversion 3s remaining unsold from the conversion of 2 per cent bonds into 3 per cent bonds and one-year notes. I t has been the policy of the Government during the current year to pay its one-year notes on maturity instead of renewing, as it is 100823°—19 18 274 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. privileged to do. Of the $1,416,000 United States notes held at the close of last year, $750,000 matured October 1, 1918, and were paid. As these had been pledged to secure Federal Reserve bank notes, a like amount of one-year 2 per cent certificates of indebtedness was purchased and pledged in their place. I n addition there have been purchased $6,000,000 2 per cent certificates of indebtedness to be pledged against Federal Reserve bank note circulation, making the total amount of notes and certificates so pledged at the end of the year $7,416,000. During December, anticipating withdrawals from Government depositaries, the Treasurer of the United States on several occasions sold to the Federal Reserve Bank one and two day 2 per cent certificates of indebtedness, the proceeds being credited to his account. The largest amount held at any one time was $18,000,000, the total so purchased being $67,000,000. RESERVE POSITION. Enlargement of the bank's activities has had the effect of causing marked fluctuations in its reserve position, as shown by Schedule 11 and accompanying charts. The amount of gold held by the bank has varied widely b u t with a decided upward tendency. Banks in this district, both member and nonmember, have turned over their gold freely to the Boston Federal Reserve Bank, taking Federal Reserve notes in exchange. Several conflicting factors account prominently for the reserve fluctuations: First, the increase in gold holdings mentioned above; second, the large increase in required reserves due to larger net deposits and increased note issues; third, the heavy rediscounts by member banks following Government withdrawals of funds on deposit with member and nonmember banks; fourth, the placing of call loans in New York City by banks holding large Government deposits and the consequent temporary losses by this bank of gold, through the settlement fund. From the end of August until the close of the year there was a downward tendency in the reserve position of the bank, due to the expansion of the bank's loan account and to the increase in Federal Reserve notes outstanding. The former condition was brought about through large transfers by the Government to other Federal Reserve districts to meet its heavy payments, causing a loss of gold, and the latter was caused by increased need for circulation, requiring larger gold reserves. MOVEMENT OF MEMBERSHIP. The movement to convert national banks into nonmember trust companies, so prevalent in this district in the early days of the DISTRICT NO. 1 BOSTON. 275 Federal Reserve system, has entirely abated and several of the banks which gave up national bank charters to operate under State laws have made application and been admitted to membership in the Federal Reserve Bank of Boston during the year. The only bank to surrender its entire holdings of Federal Reserve Bank stock was the Yale National Bank, of New Haven, which consolidated with the First National Bank of New Haven. Three new national banks have commenced business and 18 trust companies have been admitted to membership, making a net increase in members of 20. The total number of member banks at the end of 1918 was 423, holding 133,835 shares of stock, compared with 403 banks, holding 117,169 shares at the end of 1917. RELATIONS WITH NATIONAL-BANK MEMBERS. Continued progress has been made during the past year in developing a closer relationship between the Federal Reserve Bank and its members. The payment by the Federal Reserve Bank of shipping charges on currency, assumption of the cost of telegrams, and free collections of checks and other items have been appreciated by all member banks. In order to maintain closer relations with those banks located in Vermont and New Hampshire, E. A. Davis, cashier of the National White River Bank, of Bethel, Vt., was procured to act as the representative of this bank in that section and to instruct the bank's members regarding the various facilities available for their use. The fullest cooperation in the matter of placing Liberty loans and certificates of indebtedness has been secured both from members and nonmembers, and member banks have not hesitated to seek rediscounts when their needs demanded. Applications for fiduciary powers were received from numerous national banks during the first part of the year, and with the amendments of the Federal Reserve Act in September, allowing an increased scope, many banks which had formerly been granted the limited powers allowed, applied for the additional powers now available. Schedules 16 and 17 show the banks given these special powers. RELATIONS WITH STATE BANKS AND TRUST COMPANIES. As in the case of the national banks, the activities of this bank as fiscal agent have brought it into closer touch with the trust companies during the year. The larger banks have been favorably inclined toward the system and many have made application and been admitted to membership. During the year 18 trust companies became members, making over 65 per cent of the resources of eligible trust companies represented the system. Digitized forinFRASER 276 ANNUAL KEPORT OF T H E FEDERAL RESERVE BOARD. Several reasons can be ascribed for the failure of others to become members, the principal ones being (1) The banking laws of several of the New England States are not such as to encourage membership in the reserve system; (2) the character of the business of m a n y trust companies is more nearly t h a t of savings banks than commercial banks, and as such membership is not particularly attractive either from the viewpoint of the bank or of the Federal Reserve system; (3) Some banks are waiting for neighboring banks to move first; (4) Many of the smaller banks have not as yet given the matter sufficient study to realize the possibilities to themselves as members. Liberty loan operations have caused m a n y nonmembers to borrow from the Federal Reserve Bank through members, and this has resulted in bringing them to appreciate more fully the services rendered b y this bank to the community. During the last few months much interest has been manifested in membership by medium-sized and small t r u s t companies, and several applications^ have been received. Schedule 14 shows all member trust companies. CREDIT DEPARTMENT AND BANK EXAMINATIONS. The credit department, in so far as it pertains to commercial credits, has increased its scope b u t little during the year. Statements on all notes or trade acceptances of over $5,000 are required, b u t no attempt has been made to give the service of checking credits to member banks. Accepting banks and bankers have been investigated, and where their bills have been purchased unindorsed they have been required to furnish statements. The nucleus of an examining department has been established and is working in conjunction with the credit department. Statements of condition of member banks are carefully analyzed and every attempt made to keep in close touch with their condition. State member banks are either examined annually by this bank's examining department, or a representative participates in the examination by the State authorities or public accountants, although m some cases the examinations of State banking departments have been accepted without participation. DEPOSITS. Member bank deposits with this bank have shown a steady increase throughout the year, having expanded from about'$80,000,000 at the end of 1917 to an average of about $100,000,000 toward the end of 1918. This has been due to increase in membership b y the admission of trust companies during the year and the increase which member banks in general have had in their own deposits, necessitating the carrying by them of larger reserves. DISTRICT NO. 1 277 BOSTON. Taken as a whole, little trouble has been experienced in having member banks maintain the required reserves, although at times members have been inclined to allow their accounts to drop below the requirements, taking care to see that their balances were built up during the month so that no average deficiency occurred. I t may be found desirable at an early date to obtain weekly instead of monthly reports of required reserve. The policy of penalizing those which have insufficient reserves has been continued throughout the year. PERIODIC REPORTS REGARDING MEMBER BANKS. The system of weekly reports of member banks in the larger centers, begun late last year, has been continued. Weekly reports of clearings of banks in the principal cities of the district are received each week. There have been four calls by the Federal Reserve Board for conditions of member trust companies during the year and six calls by the Comptroller of the Currency for the conditions of national banks. Copies of these reports have been received by the Federal Reserve Bank. A report of at least two examinations of each national bank is received each year from the chief national bank examiner, and at least one examination is made of each other member, as mentioned elsewhere. FISCAL AGENCY OPERATIONS FOR TREASURY DEPARTMENT. CERTIFICATES OF INDEBTEDNESS AND GOVERNMENT DEPOSITS. Fiscal operations of the Government have been a more dominant factor in the activities of the Federal Reserve Bank than in any previous year, becoming increasingly heavy as the year advanced and as participation of the country in the European war became greater. Throughout the entire year, as will be seen by Schedule 22, the Treasury Department made offerings of United States certificates almost fortnightly—certificates issued in anticipation of the payment of taxes and those to be refunded by Liberty loan bonds. As regards issues other than those for tax purposes, each Federal Reserve district was allotted an amount based on a percentage of its banking resources. To handle these frequent offerings, a committee was formed, consisting of Storer P . Ware, chairman; Charles A. Morss, governor; and Frederic H. Curtiss, Federal Reserve agent. This committee was supplemented by representatives from 16 centers in the district. The committee urged ever}^ bank to set aside 2t per cent of its resources every two weeks to invest in certificates, and in time most of the banks were able to adopt this program. Schedule 23 shows the amount of subscriptions in the district. 278 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Many subscribing banks paid for their certificates by crediting the Government on their books, deposits being secured by collateral as specified by the Treasury Department. These * deposits were gradually withdrawn b y the Government and placed on deposit with the Federal Reserve Bank, being checked against or transferred by the Government, as needed. At each withdrawal, which was on a uniform percentage basis from each bank, members financed themselves when necessary through rediscounting with the Federal Reserve Bank. Fluctuations of rediscounts in the Federal Reserve Bank, shown b y chart D, illustrate graphically how this demand was met. A similar method of financing was adopted in connection with the payment of Federal taxes on June 15. These taxes amounted in New England to over $300,000,000. These payments falling largely on the Boston banks, a great part of the receipts was deposited with those banks, proportionate to the amount drawn on each. These deposits were likewise secured by collateral and gradually withdrawn. Schedules 24 and 25 and accompanying chart show details of Government deposits. FLOTATION OF LIBERTY LOANS. The organization built up during the first and second campaigns was maintained and further improved to handle the third and fourth Liberty loans. The chairman of the Liberty loan committee was the governor of the Federal Reserve Bank of Boston, Charles A. Morss. The active management was in the hands of N. Penrose Hallowell, executive chairman; J. R. Macomber, assistant executive chairman; James Dean, chairman of distributing committee; and Mrs. F . L. Higginson, chairman of the women's committee. The handling of these loans and other fiscal operations has required a large increase in the banking force and accommodations. Details of the loans are contained in Schedules 26 to 34. The epidemic of influenza which continued until almost the end of the fourth Liberty loan campaign prevented all forms of public demonstrations, which had proved so effectual in previous campaigns, and other methods to stimulate subscriptions had to be adopted. Individual solicitations had to be increased and the Federal Reserve Bank established a 4 per-cent 90-day rate on rediscounts of loans on bonds of the fourth Liberty loan in order to stimulate subscriptions against future income. The quota allotted to this district for the third campaign was $250,000,000 and for the fourth campaign, $500,000,000. The subscriptions received were $354,537,250, or 141 per cent, and $632,221,850, or 126 per cent, respectively. DISTRICT NO. 1 BOSTON. 279 WAR-SAYINGS CERTIFICATES. Until November 15, 1918, the war-savings campaign was conducted by the Treasury Department. The Federal Reserve Bank simply carried and distributed stamps to the qualified agents. Early in November, acting under instructions from Washington, the campaign for war savings was placed under the direction of the governors of the Federal Reserve banks. Until the end of the year, the same organization as in the past has been continued. Frequent meetings have been held by the governor with the chairmen of the different State committees, and efforts have been made to stimulate sales of war-savings and thrift stamps. After the first of the year, Mrs. F. L. Higginson, chairman of the women's Liberty loan committee, will become district chairman of the war-savings campaign, and she is at present perfecting an organization whereby that important work will be placed in the hands of committees of women, who will work closely in touch with the Liberty loan organizations, and who hope to develop a general campaign for thrift and economy throughout the district. Schedule 35 shows sales by States. CAPITAL ISSUES COMMITTEE. Acting under instructions from the Federal Reserve Board, following a request from the Secretary of the Treasury, a committee was formed to pass on all applications with " respect to capital expenditures or the issue of new securities " originating within the New England district. This committee reported its conclusions to a central committee in Washington, the reports being based upon whether such expenditures or issues were compatible with the national interest. This committee consisted of Frederic II. Curtiss, chairman; Charles A. Morss, vice chairman; Charles Francis Adams, Henry G. Bradlee, Philip Cabot, Allen Curtis, Henry B. Day, Francis R. Hart, James F. Jackson, John E. Oldham, and Robert Winsor. Its first meeting was held on February 1, 1918, and thereafter weekly. The committee acted under the direction of the Federal Reserve Board until April 5, 1918, when the War Finance Corporation law went into effect. After that date these same persons, together with Thomas W. Farnum, Allan Forbes, Arthur M. Heard, Robert W. Huntington, Frank W. Matteson, Edmund R. Morse, and H. M. Verrill, continued to serve as a permanent committee until they were authorized to dissolve on December 31, 1918. The committee secured the services of George Tyson as a consulting member and E. H . Kittredge as secretary. The bankers and brokers of the district gave their fullest support to the activities of the committee. 280 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. Schedule 36 shows to some extent the scope of the committee's activities. The committee, besides assuming jurisdiction over securities, supervised to a large extent the bank loans of public utilities and assisted in investigating and recommending needed Federal legislation to safeguard the public against issues of fraudulent securities. WAR FINANCE CORPORATION. The War Finance Corporation has been called upon to assist to a very limited extent in the New England district. In those cases where advances have been made, the Federal Reserve Bank has acted as agent, delivering funds furnished by the corporation and receiving and holding securities and documents as directed by it. FEDERAL RESERVE NOTE ISSUES. The amount of Federal Reserve notes outstanding has increased steadily throughout the year, the gold held by the bank being thus increased and conserved. The amount outstanding at the end of the year was considerably more than double the amount on January 1, 1918, as is shown by Schedules 37 and 38. Under arrangements between the bank and the Federal Reserve agent, the total bill holdings of the bank are pledged at all times as security for these notes in addition to the required gold reserve. The large demand for currency has necessitated the printing and maintenance of a larger supply, and the standing order on file in Washington for notes of this bank has been increased several times during the year. Under the amendment to the Federal Reserve Act of September 26, 1918, authorizing the issuance of Federal Reserve notes of $500, $1,000, $5,000, and $10,000 denominations, orders have been filed for an amount aggregating $52,000,000 of these denominations for this bank. Including notes in process of printing and the above notes of large denominations, it is intended to have available at all times a supply aggregating about $225,000,000. FEDERAL RESERVE BANK NOTES. Under the law providing for the temporary retirement of a large quantity of silver certificates and the melting of the silver dollars, against which these were issued, this bank has p u t into circulation nearly $7,000,000 of Federal Reserve bank notes. These are secured by United States notes and certificates, and are issued in denominations of $1, $2, and $5. POSITION OF COMMERCIAL BANKS AS THE RESULT OF WAR FINANCING. Apart from temporary Government deposits in the banks, deposits at the end of the year show very little change in volume from t h a t shown at a similar date in 1917, the general movement being an in- DISTRICT NO. 1 BOSTON. 281 crease in demand deposits and a decrease in time deposits. Schedule 40 shows a comparison of items of thirty-six of the larger banks in the district in December, 1917, and December, 1918. The heavy increase in the amount of United States securities owned is due largely to the holding of short-time Treasury certificates, the bank holdings of Liberty loan bonds showing a rather moderate increase. On the other hand, there is a heavy increase in loans secured by United States securities. While banks were urged to purchase short-term certificates of indebtedness as they were issued, they have been discouraged from tying up their commercial deposits in long-term Government bonds. Banks were urged during the war period to conserve their resources for Government uses, to assist industries engaged in war work, and to curtail as far as possible, credits to industries not essential to the war. POLICY TO BE PURSUED IN RESTORING LIQUIDITY OF BANKS. As the industries of this district when hostilities ceased were largely given to Government work, the cancellation of war orders will probably bring about a considerable reduction in commercial loans. Banks of the district are carrying a very large volume of loans against Liberty bonds, and on December 31 about 75 per cent of the loans in the Federal Reserve Bank and of loans discounted by t h a t bank with other Federal Reserve Banks were against Government securities. As early as possible, means should be taken to encourage liquidation of such loans. The most effective means would appear to be the gradual increasing of the Federal Reserve Bank's discount rate on bond-secured loans. How fast and how far this rate should be increased will depend on its effect on the future offering of Government securities and the rate at which such securities are offered. No other method than by rate increase seems practicable, although banks should be urged to bring some pressure on their borrowers of this class, either by increasing rates or by demanding an additional margin of collateral. How soon this war paper can be liquidated, it is difficult to say. If liquidation comes in commercial loans, banks may liquidate their Federal Reserve Bank borrowings, but as soon as the Government's requirements have been met, liquidation should be steadily and consistently forced by the Federal Reserve Bank increasing its rates INTERNAL ORGANIZATION. There have been several changes in the official organization of 282 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. during the first half of the year, and Philip R. Allen, of East Walpole, Mass., was elected by banks in group 1, on July 1, 1918, to fill the unexpired term, running until January 1, 1921. The Federal Reserve Board, on August 6, appointed Jesse H. Metcalf, of Providence, R. I., a class C director, to fill the unexpired term of Andrew J. Peters, who had resigned to become mayor of Boston. This term runs until January 1, 1920. The terms of Arthur M. Heard, class A director, and Charles G. Washburn, class B director, expired January 1, 1919. Under the amendments to the Federal Reserve Act in September, 1918, Mr. Heard was not eligible for reelection, being an officer of a bank in a different group from that which he represented as director of this bank. Elections were held during the fall months. Charles G. Washburn was reelected and Edward S. Kennard, cashier of the Rumford National Bank of Rumford, Me., was elected to succeed Arthur M. Heard. The terms of these directors expire January 1, 1922. Allen Hoilis, class C director, whose term expired January 1, 1919, was reappointed by the Federal Reserve Board for a term running to January 1, 1922, and was redesignated as vice chairman. At a meeting of the board of directors held January 3, 1918, Daniel G. Wing, president of the First National Bank of Boston, was reelected as a member of the Federal Advisory Council. The growth of the bank has necessitated the election of additional officers. On January 3, Charles E. Spencer, jr., treasurer of the Colonial Trust Co. of Waterbury, Conn., was elected deputy governor, taking office February 1, 1918. On January 31, William N. Kenyon was elected assistant cashier, to take effect February 1, 1918, and on March 28, Frank W. Chase and L. Wallace Sweetser were elected assistant cashiers to take effect April 1, 1918. The clerical force of the bank has been doubled during the year, there being 499 employees on December 31, as compared with 256 at the end of 1917. Of this force, about 60 per cent are women. In addition, about 86 clerks are employed by the Liberty loan committee. CLEARINGS AND COLLECTIONS. The check collection department has had rapid growth during the year, the clerical force having increased from 35 to 109. The number of New England items has increased from 9,000 to approximately 35,000 loose checks a day, not including checks received from Boston banks. The latter are received in packages divided by banks on which drawn. This method has not been entirely satisfactory, and it is expected t h a t before long all checks will be DISTRICT NO. 1 BOSTON. 283 7,500. Boston Clearing House checks have increased correspondingly. The large increase in checks handled was brought about by two factors: First, the elimination on June 15 of the service charge for collection; second, by the New York Clearing House rule, which made it necessary for New York banks to collect all checks through the Federal Reserve Banks, if they were unable to collect them as expeditiously through their other correspondents. Previous to the elimination of the service charge, it was customary to make a per item charge sufficient to cover the actual cost of collection. This cost is now absorbed by the Federal Reserve Bank. The collection system for time items, while not so well developed as that for check collections, has made considerable progress during the year. The elimination of the service charge on checks also applied to time collections and brought about an increase necessitating the enlargment of that department. All items are collected free except for the charge made to the Federal Reserve Bank by the collecting agent, and a charge of 15 cents on items returned unpaid. The time collection system, however, is far from satisfactory, and some uniform basis for collection charges should be agreed upon by the Federal Reserve Banks instead of leaving the charge subject to the pleasure of the collecting bank. GOLD SETTLEMENT FUND. Commencing in May, the Federal Reserve agent of Boston transferred to the gold settlement fund the entire amount of gold certificates held by him against Federal Reserve notes, and these are now held in Washington, subject to his order. Schedule 12 shows the amounts cleared during the year, not including direct transfers caused by special transactions and which did not enter into clearing, such as transfers between the bank and the Federal Reserve agent of Boston. BANKING QUARTERS. One of the most serious problems which the large increase in the Federal Reserve Bank's activities has produced has been to secure adequate quarters in which to house its large force of clerks and to properly handle the immense volume of work that this increased activity has brought about. At the beginning of the year the bank occupied about 16,000 square feet of working space, its quarters, besides the main banking room at 53 State Street, extending to 84 State Street and 131 State Street. These were later increased by renting a building at 20 284 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. This has given the bank, at the end of the year, about 40,000 square feet of working floor space. Having banking quarters so poorly located has prevented economic and efficient handling of work and a permanent building was deemed vital. After careful survey of the available sites, the board of directors voted to purchase the land and building at 95 Milk Street. This property, covering about 13,363 square feet of land, was purchased on June 27 for slightly over $1,000,000. The lot has a frontage of 63.51 feet on Post Office Square and of about 129 feet on Pearl Street, and is conveniently situated with respect to the financial seotion of Boston. I t is proposed to tear down the present building and to erect at an early date a building which will accommodate all of the bank's activities. I n order that this subject might be given careful consideration and study, a building committee was appointed by the board of directors, consisting of E . R. Morse, chairman; Charles G. Washburn, Philip R. Allen, Charles A. Morss, governor; and Frederic H.Curtiss, Federal Reserve agent. CONCLUSION. Business and banking have not as yet had time to adjust themselves since the signing of the armistice. The impetus of war work is still felt in almost every trade, and the year has ended with most of the industries fairly active, and with a strong demand for money, the continued requirements of the Government for loans more than offsetting any liquidation of Government commitments on war contracts. As yet there is no marked oversupply of labor in the district. The readjustment of New England industries from a war to a peace basis will be no easy task, as this is largely an industrial community. The raw material market will, no doubt, within a short time adjust itself, b u t the problem of labor is more difficult to solve. If the mills and manufacturers of New England are to be dependent upon domestic trade, there must be reasonable protection for them from foreign competition, and if on foreign trade, they must be in a position to compete against scales of wages prevailing in the industrial centers of other countries. Manufacturers must be able to transport goods and finance sales to foreign markets in a satisfactory manner, if they are to compete with foreign-made goods. The large increase in our merchant marine, it is expected, will make it possible to transport goods economically in American bottoms, and the large banks in New England are organized and fitted to give satisfactory service in financing any foreign demand for goods manufactured in the district. DISTRICT NO. 1 285 BOSTON. The readjustment of the industries of the district and the liquidation of the heavy loans now being carried by the banks through the financing of subscriptions to Government securities will require the most careful study and handling, both by the local bankers and by the officials of the Federal Reserve Bank. E X H I B I T A.—Movement of principal earning assets of the Federal Reserve Bank of Boston during the calendar year 1918. [In t h o u s a n d s of dollars; i. e., 000 o m i t t e d . ] Discounted p a p e r secured b y O t h e r discounted United States war| p a p e r . obligations. (1+2.) Bills Total bills b o u g h t i n discount- Per cent ed and open (1-5). bought. market. 1 39,730 37,106 39,187 40,214 38,720 37,510 44,160 48,567 50,822 49,813 46,560 46,905 49,103 47,933 46,966 41,438 44,594 43,256 40,805 26,203 31,242 32,134 35,165 36,481 33,457 34,813 50,578 58,132 57,810 64,518 61,565 60, 728 42,814 46,603 51,439 62,611 65,887 67,555 71,246 76,516 75,205 67,306 77,591 93,849 116,843 134,813 120,908 131,096 122,877 127,797 108,438 116,328 17,591 14,104 11,441 12,630 10,943 10,526 11,643 10,869 10,137 10,436 8,201 9,924 10,638 10,895 9,946 8,137 9,713 8,826 9,460 9,846 10,035 11,681 11,848 11,575 12,387 16,360 21,929 27,192 28,363 26,656 22,905 24,229 22,167 20,811 20,749 19,374 17,617 16,504 15,594 13,139 11,830 11,079 11,653 10,635 11,616 11,472 12,578 12,616 12,747 10,840 9,224 13,814 57,321 51,210 50,628 52,844 49,663 48,036 55,80359,436 60,959 60,249 54,761 56,829 59,741 58,828 56,912 49,573 54,307 52,082 50,265 36,049 41,277 43,815 47,013 48,056 45,844 51,173 72,507 85,324 86,173 91,174 84,470 84,957 64,981 67,414 72,188 81,985 83,504 84,059 86,840 89,655 87,035 78,385 89,244 104,484 128,459 146,285 133,486 143,712 135,624 138,637 117,662 130,142 9,633 5,832 6,350 9,307 11,724 13,757 14,923 16,287 21,685 8,072 9,477 11,475 12,746 13,589 13,475 14,267 16,606 18,618 18,862 21,037 22,314 23,060 21,811 21,303 20,336 21,638 22,241 26,267 24,683 24,297 20,636 18,938 21,616 26,440 28, 746 29,353 29,821 29,311 35,842 46,968 53,825 59,744 55,880 43,863 30,710 11,941 15,448 25,229 16,942 14,660 12,843 15,944 66,954 57,042 56,978 62,151 61,387 61,793 70,726 75,723 82,644 68,321 64,238 68,304 72,487 72,417 70,387 63,840 70,913 70,700 69,127 57,086 63,591 66,875 68,824 69,359 66,180 72,811 94,748 111,591 110,856 115,471 105,106 103,895 86,597 93,854 100,934 111,338 113,325 113,370 122,682 136,623 140,860 138,129 145,124 148*347 159,169 158,226 148,934 168,941 152,566 153,297 130,505 146,086 59.3 65.1 68.8 64.7 63.1 60.7 62.4 64.1 61.5 72.9 72.5 68.7 67.7 66.2 66.7 64.9 62.9 61.2 59.0 45.9 49.1 48.1 51.1 52.6 50.6 47.8 53.4 52.1 52.1 55.9 58.6 58.5 49.4 49.7 51.0 56.2 58.1 59.6 58.1 56.0 53.4 48.7 53.5 63.3 73.4 85.2 81.2 77.6 80.5 83.4 83.1 79.6 286 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. hi r FEDERAL RESERVE BANK OF BOSTON. MOVEMENT OF EARNING ASSETS DURING T/fE CALENDAR YEAR ISIS. Girre I: Jf/ar/banjhjter. Ckrre£;&frUJftilZs3i$eounted,. GcryeS.-SSios 3iscotatted, anaJSought?. Gxrrc4:&tid€&nznxtJIsset$j ittd.ttS. Government Securities. CUrveS:lkcUip cfJVor-GxxKjimcr to JoCalJBills &iscowtf^an&$otf£kt?. 6 I CHAET A. DISTRICT NO. 1 287 BOSTON. E X H I B I T B.—Movement of cash reserves, net deposits, Federal reserve note liabilities and the reserve percentage of the Federal Reserve Bank of Boston during the calendar year 1918. [In thousands of dollars; i. e., 000 omitted.] Jan.4 J a n . 11 J a n . 18 J a n . 25 Feb.1 Feb.8 F e b . 15 F e b . 21 Mar. 1 Mar. 8 Mar. 15 Mar. 22 Mar. 29 Apr. 5 A p r . 12 A p r . 19 A p r . 2o May3 May 10 M a y 17 May 24 M a y 31 June 7 J u n e 14 J u n e 21 J u n e 28 July 5 J u l y 12 J u l y 19 J u l y 26 Aug. 2 Aug. 9 A u g . 16 A u g . 23 A u g . 30 Sept. 6 Sept.13 S e p t . 20 Sept . 2 7 Oct. 4 Oct. 10 O c t . 18 Oct. 25 Nov. 1 Nov. 8 N o v . 15 N o v . 22 N o v . 29 Dec. 6 P e c . 13 Dec. 20 Dec. 27 T o t a l cash reserves. Net deposits. Federal Reserve notes i n a c t u a l circulation. (2+3.) R a t i o of cash reserves t o net deposit a n d Federal Reserve n o t e liabilities combined. 1 2 3 4 5 80,408 94,650 106,414 103,530 92,886 106,072 87,574 98,291 91,455 110,497 110,005 114,705 118,737 116,237 122,937 133,596 135,658 126,150 127,714 137,710 135,353 143,597 146,612 139,718 138,026 132,912 133,236 145,442 113,799 109,863 116,975 140,326 140,317 150,000 147,403 140,992 147,900 138,551 137,810 127,713 131,446 127,928 143,694 109,166 133,125 121,186 113,350 106,501 117,488 111,919 106,131 115,168 69,791 73,076 87,505 88,459 76,257 85,438 73,390 86,973 83,041 86,096 80,124 88,084 94,480 87,659 90,081 93,014 100,068 89,101 89,377 86,991 91,040 100,960 103,013 96,156 89,002 88,381 107,245 131,149 98,199 94,517 88,099 107,249 88.533 104,053 105,846 104,507 110,396 99,472 105,521 104,648 110,062 102,510 128,988 100,075 132,907 120,544 104,193 118,012 111,273 102,160 83,512 91,835 74,246 75,308 74,682 75,872 76,434 78,755 80,985 83,701 87,273 88,908 89,932 90,844 92,789 95,978 98,138 99,437 101,467 102,547 102,484 102,818 102,898 104,475 107,327 107,808 109,955 112,533 118,328 121,153 121,466 125,759 128,844 131,725 132,857 134,157 136,817 141,840 144,288 145,576 148,053 152,981 155,320 155,629 151,792 152,460 153,267 152,980 150,983 150,906 151,943 155,817 161,359 163,205 144,037 148,334 162,187 164,331 152,691 164,193 154,375 170,674 170,314 175,004 170,056 178,928 187,2G9 183,637 188,219 192,451 201,535 191,648 191,861 189,809 193,938 205,435 210,340 203,904 198,957 200,914 225,573 252,302 219,665 220,276 216,943 238,974 221,390 238,210 242,663 246,347 254,684 245,048 253,574 257,629 265,382 258,139 280,780 252,535 286,174 273,524 255,176 268,918 263,216 257,977 244,871 255,040 55.8 63.8 65.6 63.0 60.8 64.6 56.7 57.6 53.7 63.1 64.7 64.1 63.4 63.3 65.3 69.4 67.3 65.8 66.6 72.6 69.8 69.9 69.7 68.5 69.4 66.2 59.1 57.6 51.8 49.9 53.9 58.7 63.4 63.0 60.7 57.2 58.1 58.5 54.3 49.6 49.5 49.6 51.2 43.2 46.5 44.3 44.4 39.6 44.6 43.4 43.3 45.2 288 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BANKOFBOSTON. DEPOSIT AND NOTE LIABILITIES, ALSO CASH RESERVES, DURING THE CALENDAR YEAR 1318. Owe I: JfetZkjtosCts. CurvcZ.-JotaL Cash Jtcseryes. Cuwvo3: Jlggregatt Jfa&GWstiand>£&.&U/!uzbiUtCe$. Cw»e4tJattio of' Cas/vrfeserres Gojfggregat& Jfet jDeftosit and, JFft.Mte, JlabiliCtes. DISTRICT NO. 1 BOSTON. 289 SCHEDULE 1.—Income and expense. Expense. 1917 P a i d i n lieu of d i v i d e n d s o n stock canceled C u r r e n t expenses D i r e c t o r s ' fees Rent Salaries Exchange paid Cost ot F e d e r a l R e s e r v e notes Assessment for e x p e n s e s of F e d e r a l Reserve Board Real estate expenses Furniture a n d equipment Difference account Repairs and alterations.. Sundries Transit department R e a l e s t a t e charged off.. To balance Total $3,926.85 51,288.75 5,781.10 15,246.49 93,193.65 69.10 102,621.37 21,226.35 1918 Income. 1917 Balance Jan. 1 Bills d i s c o u n t e d for memberbanks Acceptances p u r c h a s e d . . State, city, a n d town notes Interest on United S t a t e s securities 167,828.00 Profit on U n i t e d S t a t e s securities P e n a l t i e s for deficient 29,554.02 1 reserves 27,811.14 S u n d r y profits $271.89 151,852.48 1,230.00 26,681.56 274,361.49 245.71 1918 $11,596.56 571,117.13 $3,068,027.38 502,397.30 931,700.98 5,202.73 94,784.86 107,719.03 11,101.60 41,821.34 6,105.39 7,299.67 18,425.71 212,760.27 1,209,605.24 4,380,454.71 8,973.83 814.83 10,450.00 1,462.24 8,255.87 24,173.97 4,557.70 61,894.92 3,554.20 101,529.38 200,000.00 886,294.79 3,304,908.25 1,209,605.24 4,380,454.71 Total S C H E D U L E 2 . — D i s t r i b u t i o n of net earnings. Year ending Dec. 31, 1918. Year ending Dec. 31, 1917. 1917 1918 A v a i l a b l e for d i s t r i b u - $886,294.79 $3,304,908.25 tion. D i v i d e n d p a i d m e m b e r $597,828.54 banks. R e s e r v e for d e p r e c i a t i o n on 138,266.25 U n i t e d S t a t e s securities. 150,200.00 Balance 2,921,000.00 886,294.79 3,304,908.25 886,294.79 3,304,908.25 1919 i J a n . 2, b a l a n c e 1,460,500.00 1,460,500.00 1918 150,200.00 1919 2,921,000.00 2,921,000.00 150,200.00 2,921,000.00 R e s e r v e for franchise t a x Carried t o s u r p l u s a c c o u n t . . 1918 75,100.00 75,100.00 150,200.00 $383,908.25 S C H E D U L E 3 . — C o m p a r a t i v e balance sheet, Dec. 31, 1917, and Dec. 31, 1918, Dec. 31, 1917. Dec. 31,1918. $43,897,560.83 21,984,798.52 9,037,506.04 609,750.00 2,194,000.00 $120,515,666.97 13,059,656.44 15,084,299.96 537,750.00 7,416,000.00 77,723,615.39 156,613,373.37 18,690,900.00 16,977,000.00 3,675,000.00 3,574,566.00 3,317,260.00 37,292,607.33 408,021.21 2,287,793.10 42,917,466.00 43,305,681.64 RESOURCES. Earning assets: Bills discounted secured b y United States war obligations Other bills discounted (commercial) Acceptances purchased United States bonds United States short-term obligations Total Reserve cash: Gold (coin and certificates) Gold settlement fund Bank of England sterling gold account Other lawful money Total « 100823°—19 19 290 ANNUAL REPORT OE T H E FEDERAL RESERVE BOARD. SCHEDULE 3.—Comparative balance sheet, Dec. SI, 1917, and Dec. 31,1918—Contd. Dec. 31, 1917. Dec. 31,1918. $40,896,820.00 2,000,000.00 $59,733,330.00 7,812,380.00 21,958.75 118,035.40 144,167.62 007,383.44 216,597.70 661,035.81 489,691.55 33,133.69 567,480.00 573,091.80 52,910,810.45 10,548,466.02 13,809,622.36 30,014,655.68 320,400.00 800,000.00 253,196,771.66 377,042,425.01 1,858,450.00 75,100.00 6,691,750.00 1,535,600.00 82, 842,197.76 3, 870,139.46 13, 780,544.93 2. 419,414.94 66. 489,691.55 20,416.38 101,806,494.59 17,467,049.53 29,969,374.00 10,499,061.56 30,014,655.68 411,417.98 77,296,820.00 168,986,330.00 6,889,000.00 467,850.01 93,341.66 1,460,500.00 750,000.00 RESOURCES—continued. Reserves against Federal Reserve notes: Gold with Federal Reserve agent Gold redemption fund Other resources: Interest accrued on United States securities Due from Liberty loan subscriptions Expense, Liberty loan, etc. (recoverable) Items in process of collection *• Exchanges for clearing house and cash i t e m s . . . Federal Reserve notes and other cash on hand. Due from Government depositaries Redemption fund Federal Reserve bank notes. Real estate for bank quarters Total. LIABILITIES. Capital fund: Capital paid in Surplus Deposits: Due to member banks, reserve account Due to Federal Reserve banks, collected funds l Due to banks, uncollected funds* Due to Treasurer of United States, general account., Due to Treasurer of United States, special account.. Cashiers' checks outstanding Other liabilities: Federal Reserve notes outstanding Federal Reserve bank notes outstanding Unearned discount and interest Reserve for depreciation and interest Reserve for franchise tax Mortgage on real estate 468,896.64 **75,'i66"6o Total Liability for rediscounts with other Federal Reserve banks. 253,196,771.66 377,042,425.01 44,477,789.1 48,962,693.27 i Offsetting items to be cleared through gold-settlement fund. SCHEDULE 4.—Items of interest from the schedules of this and other official reports in connection with the fiscal operations of the United States in this district during 1918. Proceeds of the second Liberty loan and final payment Jan. 15, 1918 Proceeds of the third Liberty loan Proceeds of the fourth Liberty loan and payments of Dec, 31, 1918 Proceeds of United States tax certificates (1918) Proceeds of United States tax certificates (1919) Proceeds of United States certificates (third Liberty loan) Proceeds of United States certificates (fourth Liberty loan) Proceeds of United States certificates (fifth Liberty loan) Total certificates sold Federal taxes collected Proceeds of war savings stamps to Dec. 1,1918 '. $62,000,000 100,000,000 214,000,000 381,000,000 92,000,000 $42,000,000 355,000,000 560,000,000 849,000,000 311,000,000 54,000,000 DISBURSEMENTS. Expenditures disbursed by check Transfers to other Federal Reserve banks, net Total United States certificates paid 1,167,000,000 581,000,000 609,000,000 291 DISTRICT NO. 1—BOSTON. SCHEDULE 5.—Transactions with other Federal Reserve Banks. Acceptances allotted to a n d r e d i s c o u n t s with— A c c e p t a n c e s allotted b y a n d r e d i s c o u n t s for— Acceptances. Rediscounts. Acceptances. $20,118,745 12,926,908 15,249,557 $25,223,947 Rediscounts. $4,973,582 i 5,281,831 2 1,940,214 Richmond S t . Louis 7,338,923 5,037,199 20,032,100 $3,485,450 5,000,006 2,498,477 2,000,000 14,369,921 75,041,253 Total 45,256,047 12,195,627 12,983,933 i R e p r e s e n t s a r e p u r c h a s e , before m a t u r i t y , of acceptances sold to a n o t h e r F e d e r a l Reserve B a n k . 2 I n c l u d e s $205,214 of d i s c o u n t e d t r a d e acceptances. SCHEDULE 6.—Maturities of invested funds on last day of each month, 1918. W i t h i n 15 days. January... February.. March..".. April May June July August September October... November. December. 260,607.00 310,545.37 410,624.69 844,800.50 236,141.56 129,385.56 427,550.06 113,229.99 822,459.58 695,092.43 420,151.67 273,134.94 16 to 30 days. 31 t o 60 d a y s . $4,201,636.64 7,636,843.93 8,886,990. 48 6,362,382.24 9,177,357.06 12,196,011.21 13,687,004.60 13,160,917.28 12,257,240.13 22,884,716.98 8,474,961.32 38,892,259.94 61 t o 90 d a y s . [$10,266,870.74 $41,599, 277.57 15,553,582.45 43,854, 262.61 39,355,805.75 13,533. 558.89 6,002; 280.38 15,406,640.21 12,965,018.05 28,495, 707. 79 34,437,479.31 10,347, 824.04 17,720,477.64 13,012, 445.16 20.290.722.29 30,087, 233.13 45,843,514.53 14,299, 226.04 9,276,232.55 36,369, 377.10 66.722.182.30 14,483, 884.21 36,703,662.05 10,834, 135.09 Over 90 days. Total. $6,236.00 4,475.00 927.00 1,272.50 7,574.50 25,221.16 13,573.00 842.056.56 30,003.04 32,053.04 872,131.39 $63,328. 391.95 82,361) 470.36 73,191, 454.81 70,617, 030.33 66,875, 496.96 73,118, 274.62 62 109,872^ 99,665, 675.69 128,064, 496.84 108,255. 422.10 143,133: 232.54 133,575; 323. 41 SCHEDULE 7.—Maturities of commercial paper and trade acceptances at time of discount for member banks (rediscounts secured by United States obligations not included). 15 d a y s or less. January March April May June July August September October November December Total 16 t o 30 d a y s . 31 t o 60 d a y s . 61 t o 90 d a y s . $4,940,842.86 $2,077,970.58 $2,306,021.32 $1,957,627.97 496,505.97 1,466,247.40 1,517,832.32 8,631,816.10 5,365,867.56 1,136,779.20 3,097,966.76 2,414,968.69 447,721.32 1,454,916.12 2,840,466.89 4,084,190.95 3,065,000.41 1,300,405.78 2,145,837.92 2,527,223.11 3,613,275.74 1,645,681.67 2,519,039.94 3,985,465.44 5,613,633.65 3,123,510.93 5,092,147.32 6,607,342.24 2,304,369.95 1,621,607.80 1,913,107.87 1,535,285.90 3,565,719.54 1,221,534.56 2,597,690.17 2,914,018.82 1,462,043.39 1,052,532.83 3,268,778.71 2,374,837.39 2,905,282.20 1,276,678.09 2,287,310.10 2,742,662.44 927,088.05 1,979.526.47 4,993,084.08 2,900,648.85 Over 90 days. Total. $35,250.00 $11,317,712.73 40,000.00 12,152,401 79 36,259.43 12,051,842.64 23,310.92 8,850,606.20 138,342.33 9,176,809.55 19,959.52 11,783,422.31 54,742.18 20,491,376.32 72,132.78 7,446,504.30 2,700.00 10,301,663.09 48,103.04 8,206,295.36 9,322,444.70 110,511.87 995,882.27 11,796,229.72 48,452,691.20 16,328,016.78 30,128,590.10 36,410,816.29 1,577,194.34 132,897,308.71 292 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Total Earning Assets at close of Business each Friday, ZOO ZOO 190 190 180 160 yI no 150 y HO 130 Dollars. J\ 700 \ I 90 70 60 140 130 ['9/8 IV v V A 1 -J V ^ /V ~\ i 1 -7 ' I 1 / V ri 120 110 IOO ft ;\ <, /977, V r' 40 V -A ,'•-'* y 50 40 '--"' / ' 30 30 •*/ 20 1917 *>..-''" ' * " 20 y •*»./ 70 60 / -/ 50 BO 80 10 10 Jan. Feb. Mar. Apr. May June July CHABT C. Aug- .SepA 0c/1. Afcf. Z?<?<T. j Dollars Millions no 160 ISO Millions \ /f f 120 80 V V / 160 170 293 DISTEICT NO. 1—BOSTON. Bills Rediscounted and Member Ba/f/C Collateral Notes at c 'ose of Buslm ss ea :h Frida^ /• held 1 'V ^ x V '» i 1918 ',1917 iVJJ x / W J r ,\ ^~/\ 19 J 7 ^ ——-S Feb, • Mar. /"'^ . - / Apr. May. •J June July CHART D. Aug. Sept, Oct, Nov. Qec. 294 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. SCHEDULE 8.—Acceptance liability of national banks in New England at date of Comptroller's calls 1917-18. 1917 1918 $24,372,000 25,459,000 33,147,000 35,082,000 44,500,000 49.558.000 June 20 Sept. 11 Nov. 20 Dec. 31 SCHEDULE Mar. 4 May 10 June 29 Aug. 31 Nov.l Dec. 31 $58,373,000 49,704,000 48,599,000 48,744,000 57,937,000 ... .. 59.759.000 9.—Acceptances. Foreign acceptances purchased. Number. Domestic acceptances purchased. Amount. Number. 1917 1918 January February.. March April May June July August September. October November. December.. 90 187 163 17 233 185 67 228 409 97 373 123 150 291 245 201 309 165 210 272 219 602 474 400 $2,522,546 4,461,805 4,803,854 786,937 9,077,342 6,153,140 2,300,664 6,068,808 10,654,363 4,179,893 7,831,447 3,891,621 $5,782,302 8,021,246 7,793,672 5,675,454 8,060,987 5,910,878 7,666,570 11,280,146 11,191,263 21,493,691 17,520,488 15,054,694 Total 2,172 3,538 62,732,420 125,451,391 1918 Foreign trade acceptances purchased. Number. 1917 January February March April May. June July August September October November December Total... . 1918 1918 1917 9 40 $525,200 377,598 2 3 250,000 258,670 24 101 8 50 45 228 Amount. $229,553 2,020,406 60,733 499,881 597,664 54 3,408,237 279,430 1 1,690,898 1917 1918 Amount. 1917 1918 71 121 150 102 194 124 148 269 285 437 533 329 $515,292 800,416 353,407 458,149 1,140,471 2,390,740 1,102,781 1,253,165 3,958,850 1,400,099 3,505,018 8,508,144 $2,219,399 3,177,431 3,332,815 3,263,609 5,226,176 3,227,240 4,301,286 7,461,252 8,492,786 11,607,466 11,314,325 7,599,840 766 2,763 25,386,532 71,223,635 20 19 8 20 57 70 22 49 102 54 79 Bankers' acceptances to create dollar exchange purchased. Trade Foreign accepttrade acances ceptances discounted. discounted. Number. Amount. Amount Amount. 1918 1918 1918 1918 26 $1,252,666 800,000 12 50,000 1 39 2,102,000 $1,681,760 623,541 1,441,003 287,007 901,692 1,053,260 525,841 602,987 541,833 498,977 454,511 445,041 $25,994 9,057,453 1,229,679 i In addition, $398,340 of domestic trade acceptances were purchased during August. 496,967 590,153 116,565 295 DISTRICT NO. 1—BOSTON Acceptances 75 held at c/ose of business each Friday. 70 65 60 A 55 - / \ 50 / \ / \ 45 40 30 20 y 1917 f K pj v ^ k\ 1/ K v i V <^ VA / r""""" •*y \ ^ A \J ,'^_- / Uy 10 S J s^J / f\ 25 15 1 1 / 35 U'' \l31U 0 J Jan. \ 1917 Feb. Mar. Apr. May June July CHART E. —Aug Sept Oct. Nov. Dec. 296 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. SCHEDULE 10.—All banks granted permission to accept up to 100 per cent of their capital and surplus. May Apr. Apr. Mar. June Dec. May Jan. July Apr. Nov. Oct. July Nov. July Dec. Jan. May Oct. Dec. 8,1918 14.1915 24,1918 30.1916 7,1915 11,1917 25,1916 27,1916 28.1916 11,1918 13.1917 5.1917 1.1918 6,1917 12.1917 17.1918 25,1918 4,1916 27,1917 16,1918 Beacon Trust Co First National Bank Fourth Atlantic National B a n k . . . Merchants National Bank National Shawmut Bank National Union Bank Old Colony Trust Co Second National Bank Webster & Atlas National B a n k . . Dedham National Bank Massasoit-Pocasset National Bank Safety Fund National Bank Phoenix National Bank Mechanics National Bank Blackstone-Canal National Bank.. Merchants National Bank Springfield National Bank Merchants National Bank Hartford Aetna National Bank... Providence National Bank Boston, Mass Do. Do. Do. Do. Do. Do. Do. Do. Dedham, Mass. Fall River, Mass Fitchburg, Mass. Hartford, Conn. New Bedford, Mass. Providence, R. I. Do. Springfield, Mass. Worcester, Mass. Hartford, Conn. Providence, R. I. SCHEDULE 11.—Reserve position on first of each month. [000 omitted.] Date. January... February.. March April May June July August September October... November. December. Federal Total Reserve Total Net notes in combined| Required deposits. circulaliability. reserve. reserve. tion, net. $79,306 76,256 83,041 93,416 98,749 101,349 80,819 89,666 91,912 95,283 100,105 110,453 §73,602 $152,908 152,690 76,434 170,314 87,273 186,463 93,047 201,013 102,264 205,952 104,603 194,256 113,437 217,571 127,571 138,783 230,695 247,049 151,765 152,460 252,565 154,007 264,460 $57,197 57,262 63,973 69,914 75,467 77,313 73,661 82,545 87,682 94,055 96,020 100,261 $86,132 92,886 • 91,455 118,715 136,117 143,790 123,703 113,680 129,624 132,201 109,166 119,385 Per cent reserve. $28,935 35,624 27,482 48,801 60,650 66,477 50,042 31,135 41,942 39,146 13,146 19,124 56 61 54 64 68 70 64 51 55 54 43 45 297 DISTRICT NO. 1—BOSTON. Percentage of Reserve against combined Deposit 3us/ne •>s eaci 7 at CI ->se of and A/ote Liabjl/'ty Friday • 60 ,\ \f917^ f \ A \ V r ^, \ /A \ i\' /' V\ J \ /« / t \60 \ » % / 1 \1918 \ ' \ 1917 \ f \J \ i t i 40 30 Jan. F*b. Mar. Apr. May June July _ AuSi__ Sept Oct Nov. Dec. 30 % CHART F . £98 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Gold 150 Reserve at close of Business each Friday. 150 140 J30 ^ A 140 \ 130 \k \j 120 v\ k\ 110 ' 100 90 i ^ 80 <§ o 70 •| 60 I'' / r •A r-t •**s v / % V /''\ / / 90 V 1917 A 80 1 t .---/ V r"\ / V \ ; i 70 60 50 V V 100 \ y\ \.._/ SO 110 \ ' \ V \f] \A, V % 120 U917 40 40 30 30 20 20 10 10 1 Jan. Feb. MCLK Apr. May Jane ^(K CHART G. /4*47- 5<?/tf. Oct Nov. Dec. 299 DISTRICT NO. 1—BOSTON. JSO Reserve account of Member Banks at close of business e ach Fn 'day. ISO 14-0 140 130 130 120 120 l\ iw 100 90 80 70 [1918 rv / A *y ' "\, V -A A A A '^ ^ J UA ^A N 1 I) N \ / i V \ r-S V N v' \ v' «V A j 1 V SO ' v * I* A 90 80 70 60 Jm ^ 100 ' 1917 1 60 40 \ 110 i i SO ' % V v' * 1917 j 40 30 30 20 20 10 10 Jan. Feb. Mar. Apr. May June July CHART H . Aug. Sept Oct. Nov. Dec. 1 300 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. SCHEDULE 12.—Monthly operations of gold settlement fund. [000 omitted.] Month. Total credits.1 Total debits.* Gained through weekly settlements. Loss through weeklysettlements. January February... March April , May June July August September. October November.. December.. $270,559 183,990 199,073 254,995 306,385 263,532 358,666 297,999 289,366 506,839 383,406 434,652 $276,622 194,318 216,038 269,505 300,857 259,507 328,893 339,433 276,077 468,274 380,351 477,126 $30,284 17,866 19,333 16,658 8,005 3,700 1,957 41,434 7,944 14,104 24,688 42,474 $24,221 7,538 2,373 2,148 13,533 7,725 31,730 Total. 3,749,467 3,787,001 228,447 190,913 1 2 Does not include direct transfers. Net gain for month." $6,063 10,328 16,960 14,510 2 5,528 2 4,025 2 29, 773 41,434 2 13,289 2 38,565 2 3,055 42,474 21,233 52,669 27,743 37,534 Loss. SCHEDULE 13.—New national banks taking out stock in the Federal Reserve Bank. Mattapan National Bank, Boston, Mass Manufacturers National Bank, Cambridge, Mass State National Bank, Lynn, Mass... Feb. 19,1918 Apr. 3,1918 June 1,1918 SCHEDULE 14.—Member trust City. companies. Name of bank. Date admitted. MAINE. Bangor Portland Merrill Trust Co Fidelity Trust Co Mar. 14,191« Mar. 18,1918 Menotomy Trust Co American Trust Co Beacon Trust Co Commonwealth Trust Co International Trust Co Liberty Trust Co Metropolitan Trust Co Old Colony Trust Co State Street Trust Co U. S. Trust Co New England Trust Co Charles River Trust Co Harvard Trust Co Fitchburg Bank & Trust Co Hadley Falls Trust Co Merchants Trust Co Security Trust Co Newton Trust Co Norwood Trust Co A Naumkeag Trust C o . . . zr. Winchester Trust Co Worcester Bank & Trust Co Nov. 9,1918 Sept. 4,1917 Jan. 15,1918 Feb. 12.1917 June 9,1917 Mar. 12.1918 Dec. 7.1917 Aug. 24,1915 Dec. 26,1918 Apr. 9.1918 Dec. 14,1918 Dec. 11,1917 Mar. 6,1918 Feb. 25.1917 Jan. 19.1918 Feb. 27,1918 Oct. 14,1918 Nov. 6,1917 Aug. 14.1917 Oct. 28.1918 May 29,1917 Dec. 26,1917 Industrial Trust Co Rhode Island Hospital Trust Co Union Trust Co Nov. 9,1917 Mar. 13,1918 Sept. 24,1918 Manchester Trust Co Union & New Haven Trust Co.. Colonial Trust Co New Britain Trust Co Dec. Dec. Apr. Aug. MASSACHUSETTS. Arlington Boston Cambridge Fitchburg Holyoke Lawrence Lynn Newton Norwood Salem Winchester Worcester R H O D E ISLAND, Providence CONNECTICUT. South Manchester New Haven Waterbury New Britain 30,1918 15,1917 6,1918 21,1918 301 DISTRICT NO. 1—BOSTON. SCHEDULE 15.—Member trust companies compared with total trust companies in this district. Total trust companies.1 Member trust companies. Number. Capital surplus. 2 Deposits. Maine New Hampshire Verm o n t Massachusetts Rhode Island Connecticut 2 $1,731,000 $16,789,000 22 3 4 43,915,000 17,019,000 3,306,000 385,395,000 134,214,000 14,675,000 Total 31 65,971,000 551,073,000 1 Figures from 1918 edition "Trust companies." Number. Capital 2surplus. 50 14 36 100 13 64 $10,148,000 2,117,000 4,838,000 75,757,000 20,557,000 16,803,000 $79,784,000 15,769,000 50,164,000 547,032 000 145,733,000 108,195,000 277 130,220,000 946,677,000 2 Deposits. Includes undivided profits. SCHEDULE 16.—Banks granted fiduciary powers under section 11 (k) of the Federal Reserve Act. Jan. 21 Jan. 28 Feb. 9 Apr. 24 Do... Do... June 3 July 27 Aug. 20 National Bank of Bellows Falls City National Bank County National Bank First National Bank Springfield National Bank Phoenix National Bank Blackstone National Bank Peoples National Bank National Union Bank Bellows Falls, Vt. Berlin, N. H. Bennington, Vt. Reading, Mass. Springfield, Mass. Hartford, Conn. Uxbridge, Mass. Barre, Vt. Boston, Mass. SCHEDULE 17.—Banks granted fiduciary powers under section 11 (k) of the Federal Reserv Act, as amended by the act of Sept. 26, 1918. Date. Name. Dec. 4 Manufacturers National Bank 1 . Do... Phoenix National Bank i Do... Waterbury National Bank Do... First National Bank Do... do 1 do. Do... .do.1. Dec. 6 l Do... Merchants National Bank do Do... l . Do... Webster & Atlas National Bank Do... Safety Fund National Bank 1 Do... Crocker National Bank i Do... First National Bank i. Do... Mechanics National Bank i Do... Mechanics National Bank i Do... Fourth-Atlantic National Bank i.. Do... Central National Bankl Do... Canal National B a n k Do... Merchants National Bank * Do... Chicopee National B a n k l Do... Second National Bank* Do... Bay State National Bank Do... Peoples National Bank * Dec. 12 Chapin National Bank 1 Do... Manufacturers National B a n k x . . . 1 Location. Waterbury, Conn. Hartford, Conn. Waterbury, Conn. New Haven, Conn. Hartford, Conn. Wallingford, Conn. Boston, Mass. Worcester, Mass. Salem, Mass. Boston, Mass. Fitchburg, Mass. Turners Falls, Mass. Gardner, Mass. New Bedford, Mass. Boston, Mass. Do. Lynn, Mass. Portland, Me. Leominster, Mass. Springfield, Mass. Boston, Mass. Lawrence, Mass. Marlboro, Mass. Springfield, Mass. Lynn, Mass. Supplementary application for additional fiduciary powers. 302 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. SCHEDULE 18.—Amounts due to member banks and rediscounts for member banks, by States. Reserve accounts. Ratio of reRediscounts. discounts to reDec. 31,1918.1 serve accounts, Dec. 31,1918. Dec. 31,1917. Dec. 31,1918. Maine New Hampshire Vermont Massachusetts Rhode Island Connecticut $3,317,195.05 2,203,338.09 1,558,536.24 63,691,658.07 5,526,049.59 6,544,638.54 $4,155,555.98 2,265,575.13 1,560,675.31 76,358,009.76 9,272,003.10 8,188,378.02 $1,126,936.85 447,057.80 605,506.90 9,134,642.09 1,146,850.23 373,462.57 27.11 19.73 38.79 11.95 12.36 4.56 Total 82,841,415.58 101,800,197.30 12,834,456.44 12.12 i Does not include rediscounts secured by United States obligations or member banks' collateral notes.- SCHEDULE 19.—Reserves of national banks in New England as reported by Comptroller of the Currency. Total reserve. Date. $59,948,000 57,001,000 61,274,000 56,392,000 59,032,000 63,115,000 Dec. 31,1917 Mar. 4,1918 May 10,1918 June 29, 1918 Aug. 31, 1918 Nov. 1, 1918 Required reserve. Excess reserve. $55,557,000 55,866,000 56,021,000 54,900,000 59,041,000 63,472,000 $4,391,000 1,135,000 5,253,000 i 1,492,000 1 9,000 357,000 i Deficit. SCHEDULE 20.—Condition of national banks in New- England on dates of comptroller's calls j 1918. [000 omitted.] Date. Mar. 4.. Mayl.. June 29 Aug. 31 Nov. 1. Net amount upon which reserve is required. $696,469 697,779 705,450 734,418 786,518 Loans. Borrowed from Borrowed Federal Reserve elsewhere, including Bank, including rediscounts, rediscounts. $661,860 714,788 735,411 694,072 797,579 $73,467 64,741 33,068 43,138 112,878 $2,890 4,186 5,140 4,132 1,877 Total borrowings. $76,357 68,327 38,208 47,270 114,755 Per cent borrowed at Federal Reserve Bank. 96.2 93.9 86.5 91.2 98.4 SCHEDULE 21.—Comparison of items reported by member banks in selected cities, 1918. [000 omitted.] Number of banks. Jan. 1. Feb.1. Mar. 1. Apr. 5. May 3. June 7. July 5. Aug. 2. Sept. 6 Oct. 4. Nov. 1. Dec. 6. United States securities owned. Loans secured by United States securities. $28,426 31,978 53,693 47,335 75,865 60,543 55,943 75,875 101,476 154,322 120,530 100,816 $44,142 40,800 31,613 34,528 33,582 52,816 52,346 47,228 40,029 40,475 116,826 110,075 Other loans. $659,419 701,823 691,976 728,383 772,229 771,650 784,842 776,760 762,252 768,186 784,349 757,899 Net demand deposits. $528,147 603,074 602,747 611,766 662,882 666,094 650,476 658,741 659,755 683,727 682,006 696,756 Reserve. $56,722 60,214 58,993 61,727 66,720 63,158 61,931 65,967 63,782 72,065 66,732 74,897 DISTRICT NO. 1 303 BOSTON. SCHEDULE 22.—Certificates of indebtedness sales and payments. THIRD LOAN CERTIFICATES. Date. Rate (per cent). Due. J a n . 22 Feb.8 F e b . 27 Mar. 20 A p r . 10 A p r . 20 4 Apr.22 May 9 M a y 28 J u n e 18 July 9 J u l y 18 i Total A l l o t m e n t to Total issued. sell. Number of d a y s before P a i d for b y final withcredit. drawal of deposits. $30,000,000 35,000,000 33,000,000 33,000,000 35,000,000 35,000,000 $20,025,000 29,134,000 35,369,000 53,690,000 89,731,000 36,468,000 $17,580,000 24,870,000 30,059,000 49,264,500 36,084,000 27,167,000 201,000,000 214,417,000 185,024,500 42 46 43 33 27 32 F O U R T H LOAN CERTIFICATES. Oct. 25.. Nov. 7.. Nov. 21. Dec. 5... Jan.2... Jan.16.. Jan.30.. $68,000,000 65,000,000 43,300,000 43,300,000 43,300,000. 52,000,000 43,300,000 $64,590,000 56,273,500 48,267,500 49,509,000 57,424,000 54,710,000 50,378,500 $58,593,000 51,922,000 45,165,000 46,100,000 52,885,000 51,103,000 47,016,000 358,200,000 381,152,500 352,784,000 F I F T H LOAN CERTIFICATES. May 6 M a y 20 Dec. 5 Dec. 19 4£ 41 $52,000,000 43,300,000 $47,901,000 45,010,500 $44,200,000 40,400,000 95,300,000 92,911,500 84,600,000 16,163,500 8,790,500 6,735,500 6,071,500 24,578,000 $13,219,000 7,535,000 4,864,000 4,051,000 22,238,000 62,339,000 51,907,000 $12,025,500 88,728,000 $10,353,000 72,700,000 100,753,500 83,053,000 Total 25 20 1918 T A X C E R T I F I C A T E S . J u n e 25 do do do do Jan. 2 Feb..L5 Mar. 15 A p r . 15 May 15 r... Total 71 41 38 43 34 1919 TAX CERTIFICATES. July 15.. Mar. 15.. SCHEDULE 23.—Distribution by issues of certificates of indebtedness sold. T H I R D L I B E R T Y LOAN. National banks. Dated. Number. Amount. Per cent Number. of issue. 109 $12,131,000 261 16,902,000 247 20,681,500 232 36,031,500 168 27,757,000 184 22,669,500 61 58 60 67 70 62 T o t a l . 1350 136,172,500 64 J a n . 22 Feb. 8 Feb.27. . Mar. 20. A p r . 10. Apr. 22. . Other b a n k s a n d i n d i viduals. Trust companies. 1 Amount. Per cent Num- A m o u n t . ber. of issue. Total. Per cent N u m - A m o u n t s ber. of issue. 45 111 140 115 90. 104 $7,407,000 11,072,000 14,130,500 16,842,000 10,768,000 12,253,000 37 38 39 31 27 34 14 23 23 30 21 25 $487,000 1,160,000 557,000 816,500 1,206,000 1,545,500 2 4 1 2 3 4 168 $20,025,000 395 29,134,000 410 35,369,000 377 53,690,000 279 39,731,000 313 36,468,000 193 72,472,500 34 182 5,772,000 2 1625 214,417,000 304 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. SCHEDULE 23.—Distribution by issues of certificates of indebtedness sold—Continued. F O U R T H L I B E R T Y LOAN. Bated. Number. Amount. Other banks a n d individuals. Trust companies. National banks. Per cent N u m of ber. issue. Amount. Per cent' N u m - Amount. of b e r . issue. J u n e 2 5 . . . 304 $39,817,500 July 9 310 30,953,500 July 2 3 . . . 286 24,191,000 Aug. 6 . 296 26,178,000 Sept. 3 290 32,199,000 S e p t . 17 | 294 28,702,500 Oct. 1. . 234 25,074,000 62 55 51 53 56 53 50 162 $22,545,500 162 21,064,500 138 22,191,500 157 19,900,500 161 21.421,500 145 22,425,500 123 23,744,000 35 37 45 40 37 41 47 T o t a l . 1381 207,115,500 54 1237 153,293,000 40 1 Total. Per cent Number. of issue. AmOunt. 35 $2,227,000 54 4,255,500 58 1,885,000 90 3,430,500 102 3,803,500 86 3,582,000 51 1,560,500 3 8 4 7 7 6 3 501 $64,590,000 526 56,273,500 580 48,267,500 543 49,509,000 553 57,424,000 525 54,710,000 418 50,378,500 120 20,744,000 6 V738 381,152,500 i Actual number of different subscribers. SCHEDULE 24.—Report of payments by credit and withdrawals since Jan. 1, 1918. Payment by credit. January. February March April May June July August September October November December Total Withdrawals. $64,000,000 52,000,000 57,000,000 81,000,000 177,500,000 200,000,000 144,000,000 79,000,000 109,000,000 318,000,000 141,000,000 126,000,000 $78,500,000 50,000,000 36,000,000 105,000,000 92,000,000 166,500,000 212,000,000 109,000,000 121,000,000 143,000,000 296,000,000 177,000,000 1,548,500,000 1,586,000,000 SCHEDULE 25.—1ledeposits Date. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. 1,1918 1,1918 1,1918 1,1918 1,1918 1,1918 1,1918 1,1918 1.1918 1,1918 1,1918 1.1918 1.1919 Balance. $66,500,000 52,000,000 54,000,000 75,000,000 51,000,000 136,500,000 170,000,000 102,000,000 72,000,000 60,000,000 235,000,000 80,000,000 29,000,000 of i nternal-revenu efunc is. EEDEPOSITS. June 11,1918 June 12,1918 June 13,1918 June 14,1918 June 15,1918 June 17,1918 June 18,1918 June 19,1918 June 20,1918 June21,1918 June 22,1918 June 24,1918 June 25,1918 June 26,1918 June 27,1918 June 28,1918 June 29,1918 July 1 and 2,1918 July 3,1918 v $3,755,600 4,747,000 6,531.000 10,302,000 19,160,000 48,471,400 17,426,00O 6,755,0003,996,000 4,840,000 857,000 2,220,000 1,076,000 14,465,000 1 134,000 785,000 1,505,000 340,000 57,000 148,423,000 WITHDRAWALS. Advance payments June 27 July 2 JulyB July 9 . . . . c uyll . . . r „.,, $1,113,000 28,706,400 29,551,600 29,665,000 26,724,150 32,662,850 148,423,000 305 DISTRICT N O . 1—BOSTON. of Public Money Due from Depos itart'ei at Close of Basin ess ea ch Fridc y- \\ 1 \ * \/ \A ^A 1/9/8 M / ^ H\ V \^ r-J ¥'f \ 1917 Jan, Feb. fyfar, Apr, /\ ,"—-»' May Jane Vs July CHART I. 100823°—19 20 Aug. Sept. .--/ Oct Nov, Dec. 306 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. Due to Treasurer of the United States of Bust ness < >ach f '/day. close at60 \ 55 ii i 5C » jI i i I III i | J J i J978 } A H I 1 i\A [ I I A •j IV ' 1i 1 klX\vA w / y J / ^NJ I MH I 1 ; II \ \J / / 45 i I \ i \ \ JA/ \ „ \ f \i 35 1 30 \ 20 Jj! 1 * \\i <ii \/ 1S17 i > 40 2S 1 i '1\1/ wf\ ts 10 S O / V'' 5 JO Jan, Feb. Mar. Apr. May June July CHART J. SMSH' Sept. Oct. Nov. 1 Dec. j 307 DISTRICT NO. 1—BOSTON. SCHEDULE 26.—Subscriptions to Liberty loan bonds. F o u r t h L i b e r t y loan. T h i r d L i b e r t y loan. -Total. Day. Apr. 9 A p r . 10 A p r . 11 A p r . 12 A p r . 13 A p r . 15 A p r . 16 A p r . 17 A p r . 18 A p r . 19 A p r . 20 A p r . 22 A p r . 23 A p r . 24 A p r . 25 A p r . 26 A p r . 27 A p r . 29 A p r . 30 May 1 May 2 May 3 May 4 May 6 May 7 May 8 May 9 $20,421,600 15,145,900 10,793,700 7,325,500 7,506,450 7,449,100 11,691,700 10,743,750 9,152,100 10,155,300 3,319,050 9,112,450 8,881,350 12,356,350 10,488,100 12,319,750 17,056,400 12,619,450 12,539,450 12,893,700 22,200,850 18,159,850 21,917,050 21,047,850 17,348,450 11,091,600 20,800,450 $20,421,600 35,567,500 46,361,200 53,686,700 61,193,150 68,642,250 80,333,950 91,077,700 100,229,800 110,385,100 113,704,150 122,816,600 131,697,950 144,054,300 154,542,400 166,862,150 183,918,550 196,538,000 209,077,450 221,971,150 244,172,000 262,331,850 284,248,900 305,296,750 322,645,200 333,736,800 354,537,250 Day. S e p t . 30 Oct. 1 Oct. 2 Oct. 3 Oct. 4 Oct. 5 Oct. 7 Oct. 8 Oct. 9 Oct. 10 Oct. 11 Oct. 12 Oct. 14 Oct. 15 Oct. 16 Oct. 17 Oct. 18 Oct. 19 Oct. 21 Oct. 22 Oct. 23 Total. $44,290,850 22,867,300 29,250,850 24,644,300 22,544,600 24,157,750 13,839,150 17,521,100 21,413,950 14,942,150 14,050,400 10,683,750 17,027,850 12,294,000 39,075,950 37,837,750 34,988,400 48,696,950 85,193,050 30,748,050 57,153,700 $44,290,850 67,158,150 96,409,000 121,053,300 143,597,900 167,755,650 181,594,800 199,115,900 220,529,850 235,472,000 249,522,400 269,206,150 286,234,000 298,528,000 337,603,950 375,441,700 410,430,100 459,127,050 544,320,100 575,068,150 632,221,850 SCHEDULE 27.—Liberty loan subscriptions through Federal Reserve Bank of Size of subscription. T h i r d loan. $189,597,650 50,892, 800 32,220,050 24,219,200 57,607,550 $50 t o $10,000 $10,050 t o $50,000.. $50,050 t o $100,000. $100,050 t o $200,000 $200,050 a n d o v e r . . Total 354, 537, 250 Boston. F o u r t h loan. $264,402,700 111,497,450 68,348,650 54,750,950 133,222,100 632, 221, 850 SCHEDULE 28.—The Liberty loans. N u m b e r of subscribers. Subscriptions. State. T h i r d loan. Fourth loan. T h i r d loan. F o u r t h loan. Maine New Hampshire Vermont Massachusetts Rhode Island Connecticut 77,259 55,632 41,972 508,401 104,324 164,767 118,270 103,905 62,038 910,228 128,101 325,092 $18,348,100 14,252,000 9,330,750 228,329,750 28,717,700 55,558,950 $27,694,150 21,979,050 15,315,450 405,354,500 61,350,300 100,528,400 Total 952,355 1,647,634 354,537,250 632,221,850 308 A N N U A L R E P O R T O F T H E F E D E R A L R E S E R V E BOARD. S C H E D U L E 29.'—Liberty loan subscriptions of principal cities of New Third loan. Estimated number of subscribers. Boston Brockton Cambridge Fall River Hartford, Conn Holy oke, Mass Lawrence, Mass Lowell, Mass Lynn, Mass Manchester, N. H . . New Bedford, Mass New Haven, Conn. Portland, Me Providence, R. I . . . Somerville, Mass... Springfield, Mass... Waterbury, Conn.. Worcester, Mass— 201,900 14,144 22,316 18,886 29,780 12,707 40,707 9,712 8,967 15,734 23,315 35,763 25,549 100,619 8,102 38,048 30,497 43,779 S C H E D U L E 30.—Character of Liberty Fourth loan. Amount. $77,202,500 2,733,500 4,585,725 5,463,950 21,045,250 2,934,500 4,415,500 4,192,350 3,391,550 4,054,500 5,840,800 7,702,550 4,278,850 17,486,450 1,583,700 7,502,500 5,759,350 8,462,400 loan England. Estimated number of subscribers, 139,336 14,315 46,555 16.967 72,286 57,730 85,892 31,266 89,336 11,879 96,652 64,102 58,571 73,029 18,516 88,926 73,141 145,986 Amount. $139,800,000 4,817,400 8,800,850 8,931,650 36,422,600 5,836,850 7,402,200 8,354,350 6,476,075 7,386,340 8,707,550 15,*507,600 6,054,550 38,103,300 3,076,000 16,147,350 8,977,200 19,239,150 payments. SECOND LOAN. Date. Cash sales N o v . 15 D e c . 15 Total B y credit, Government deposit. B y cash. Certificates of indebtedness. Total. $14,245,150.00 $3,084,100.00 $17,329,250.00 4,055,738.00 5,153,004.00 9,208, 742.00 55,630,311.50 170,328,176.50 $40,435,000.00 266,393,488.00 14,183,028.28 59,793,191.55 73,976,219.83 6,397,980.02 35,750,717.02 42,148,697.04 94,512,207.80 274,109,189.07 40,435,000.00 409,058,396.87 Accrued interest. $106,799.83 419,597.04 526,396.87 THIRD LOAN. Cash sales.. May 9 May 28 July 18 Aug. 15 Total $13,056,150.00 18,579,541.07 7,851,470.42 10,483,010.07 5,671,195.46 $23,208,900.00 $13,415,500.00 $49,680,550.00 108,941,621.43 43,172,500.00 170,693,662.50 36,551,792.35 4,911,500.00 49,314,762.77 49,659,305.04 39,176,294.97 36,097,957.08 30,426,761.62 55,641,367.02 238,305,370.37 61,499,500.00 355,446,237.39 $908,987.39 F O U R T H LOAN. Cash sales O c t . 24 N o v . 21 D e c . 19 Total $14,694,150.00 $53,235,500.00 42,556,496.13 214,358,733.87 12,374,479.64 67,543,038.43 8,396,782.16 41,185,043.87 $4,700,000.00 $72,629,650. 00 94,247,500.00 351,162,730.00 6,985,500.00 86,903,018.07 49,581,826.03 78,021,907.93 376,322,316.17 105,933,000.00 560,277,224.10 $323,224.10 309 DISTRICT NO. 1—BOSTON'. SCHEDULE 31.— Transactions during the fourth Liberty loan payments. [000 omitted.] W e e k ending, 1918— Oct.18 Oct. 25 Nov 1 Nov 8 N o v . 15. N o v . 22 Total Total payRedeMember Loans banks ments posits Payand reserve Certifion acwith redisments accates c o u n t of q u a l i b y cer- cashed. c o u n t s , c o u n t s , Liberty fied intificates. inloan deposicrease. crease. a n d cer- t a r i e s . tificates. $20,900 337,800 29,000 48,500 13,000 88,800 $16,400 211,500 14,400 42,300 9,400 67,500 538,000 361,500 Withdrawals from depositaries. Transfers o u t of district Treasury. Gain i n settlement fund through clearing, i $7,000 $44,300 - 17,500 500 219,100 7,800 215,200 21,000 6,300 | 72,300 $4,200 7,000 13,400 21,800 19,100 15,900 $24,700 25,900 35,400 89, 700 52, 800 92,500 $13,000 1,000 24,000 1,000 23,000 45,000 $9,900 16,000 * 20,900 3,200 5 7,600 a 12,500 19,000 3 81,400 321,000 107,000 »11,900 $96,200 4,500 107,000 117,100 i Does not include direct transfers. 2 Decrease. 3 Rediscounted with other Federal Reserve banks $65,000,000 of this amount. SCHEDULE 32.—Liberty loan conversions. E x c h a n g e d into— Issued. 3Js. F i r s t loan i n t e r i m certificates: Allotment 1265,017,900 $167,453,400 Other Federal Reserve 2,614,700 banks 287,632,600 267,632,600 73,218,250 408,530,000 Total F i r s t 3Js F i r s t 4s Second 4s 1 167,453,400 4s. 4|s. $63,828,100 63,828,100 9,390,150 48,832,800 317,633,550 Exchanged by o t h e r Federal Reserve banks. Outstanding. $35,582,000 35,582,000 $878,350 $769,100 1 769 100 156,888 750 i 24,384,450 190,896,450 Difference between amount issued by this bank and amount presented for conversion. SCHEDULE 33.—Bond and certificate deliveries. THIRD LIBERTY LOAN. Bond coupons. $50 100.. 500 1,000 5,000 10,000 50,000.. 100,000 . . Total Certificates 1918 t a x Bonds certifiof i n registered. debtedness. cates. Pieces. 1,090,798 409,412 42,282 131,732 5,206 5,243 Pieces. 12,531 23,131 4,911 4,573 511 965 57 27 1,684,673 46,706 Pieces. Pieces. 6,873 34,449 10,674 9,656 1,460 7,075 2,609 3,561 266 14,268 61,918 28,973 310 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. SCHEDULE 33.-—Bond and certificate deliveries—Continued. FOURTH LIBERTY LOAN. Certificates Bonds of i n registered. debtedness. Bond coupons. $50 100 500 1,000 5,000 10,000 50,000 1)0,000 , Total Pieces. 759,726 384,967 42,096 162,838 6,425 8,396 Pieces. 2,560 4,923 1,159 1,185 140 212 24 8 1,364,447 10,211 Pieces. 1919 t a x certificates. Pieces. 9,237 43,724 20,938 17,722 1,842 6,794 2,927 4,053 509 374 92,130 15,990 SCHEDULE 34.— United States certificates of indebtedness redeemed from Jan. 1, 1918, to Dec. 31. 1918. Cash reBond demption. - payments. J a n . 22 t o A p r . 22 Feb. 8 to May 9 F e b . 27 t o M a y 28 M a r . 20 t o J u n e 18 A p r . 10 t o J u l y 9 A p r . 22 t o J u l y 18 N o v . 30 t o J u n e 25 J a n . 2 t o J u n e 25 F e b . 15 t o J u n e 25 Mar. 15 t o J u n e 25 A p r . 15 t o J u n e 25 J u n e 25 t o O c t . 24 July 9 to Nov. 7 J u l y 23 t o N o v . 21 A u g . 6 t o D e c . 5 (called N o v . 21) S e p t . 3 t o J a n . 2 (called Dec. 19) S e p t . 17 t o J a n . 16 O c t . 1 t o J a n . 30 A u g . 20 t o J u l y 15 N o v . 7 t o Mar. 15 Total $15,099,000 14,444,000 24,402,500 45,549,500 22,229,000 24,759,500 7,804,000 8,106,500 4,993,000 2,282,500 1,221,500 9,596,000 45,233,500 46,575,000 38,098,500 For new issues. $3,859,000 $14,271,000 9,686,000 7,974,000 17,618,500 11,950,000 GovernTax ment withpayments. drawals. $2,218,000 1,566,500 $8,046,500 9,550,500 4,237,500 4,837,500 6,262,000 5,402,000 Total. $21,176,000 28,715,000 35,655,000 53,523,500 39,847,500 36,709,500 15,850,500 17,657,000 9,230,500 7,120,000 7,483,500 14,998,000 63,015,000 55,647,000 47,442,500 17,781,500 9,067,000 8,638,000 5,000 706,000 36,713,500 11,560,000 319,000 48,592,500 34,459,0d0 21,922,500 17,337,500 20,684,000 135,000 1,015,000 885,000 8,797,500 200,000 424,000 56,516,500 18,352,500 21,569,000 8,997,500 424,000 38,960,000 608,522,500 381,566,500 168,490,000 15,721,500 3,784,500 SCHEDULE 35.— War-savings stamps issued during year 1918. N u m b e r of N u m b e r of thrift w a r savings Total stamps stamps a m o u n t sold. issued. issued. Boston M a s s a c h u s e t t s (outside B o s t o n ) Maine Rhode Island Connecticut Sundries Total 117,279 179,710 141,331 166,109 125,649 177,705 159,265 7 335,884 607,295 454,659 292,279 159,433 443,445 705,705 1,067,055 2,998,700 $568,996.51 898,686.36 702,120.10 766,391.04 564,398.28 852,386.21 839,184.29 1 5,192,162.79 1 Amount issued by Federal Reserve Bank of Boston. The Treasury Department reports total sales of $54,685,000 in this district up to Dec. 1.1918. 811 DISTRICT NO. 1—BOSTON. SCHEDULE 36.—Capital Issues Committee. Approved. Number. D i s t r i c t opinions r e n d e r e d : P u b l i c service Municipal Industrial 4 27 17 Total Central opinions r e n d e r e d : P u b l i c service Municipal Industrial 191 Total Disapproved. Amount. Number. $276,000 770,775 1,115,225 2 5 48 2,162,000 7 404,800 49 45 97 52,046,971.47 10,377,045.83 99,428,796.67 1 6 21 200,000 1,600 000 28,874^080 161,852,813.97 28 30 674 080 Applications withdrawn. Number. P u b l i c service. Municipal Industrial - Total Amount. Applications transferred. Number. Amount. $34 800 370,000 Amouut. 4 3 15 $4,053,775 2,140,000 5,670,950 2 2 $180,000 1,150,000 22 11,864,725 4 1,330,000 B u i l d i n g o p e r a t i o n s p o s t p o n e d d u r i n g t h e war, 43; t o t a l , $10,895,200. B a n k l o a n s for c a p i t a l p u r p o s e s a p p r o v e d , 25; t o t a l , $9,172,791. Public-service corporation n o t e s registered, $43,844,025. SCHEDULE 37.—Federal Reserve notes issued by Federal Reserve agent. Outstanding on first of month. Issued during month. $77,296,820 80,734,120 88,779,535 95,453,485 105,187,950 109,412,340 116,673,340 130,721,190 141,664,660 154,957,360 166,709,910 162,337,720 $5,540,000 9,420,000 7,760,000 11,980,000 8,300,000 10,500,000 16,500,000 13,500,000 16,000,000 14,040,000 2,640,000 13,900,000 $2,102,700 1,374,585 1,086,050 2,245,535 4,075,610 3,239,000 2,452,150 2,556,530 2,707,300 2,287,450 7,012,K0 7,251,390 $3,437,300 8,045,415 6,673,950 9,734,465 4,224,390 7,261,000 14,047,850 10,943,470 13,292,700 11,752,550 M,372,190 6,648,610 130,080,000 38,390,490 91,689,510 January February.. March..... April May June July August September. October November. December.. Total . 1 Retired duri n g m o n t h . N e t increase. Decrease. SCHEDULE 38.—Number of Federal Reserve notes issued and retired by Outstanding J a n . 1, 1918. Fives Tens.. Fifties Hundreds Total Issued. denominations. Retired. Outstanding Dec. 31,1918. 2,566,832 4,047,743 689,754 74,987 64,408 5,292,000 4,980,000 2,236,000 70,000 56,000 2,412,092 1,844,266 260,851 18,725 17,341 5,446,740 7,183,477 2,664,903 126,262 103,067 7,443,724 12,634,000 4,553,275 15,524,449 312 A N N U A L REPORT OF T H E F E D E R A L R E S E R V E BOARD. S C H E D U L E 39.—Inter-district Federal Reserve note movement. Received from— Sent to— N e t excess returned. New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas S a n Francisco. $15,729,700 2,176,000 340,970 734,750 494,850 1,017,250 403,515 114,500 61,600 419,450 167, 720 $27,182,800 2,374,800 2,145,540 1,620,600 622,250 2,219,810 380,400 338,700 450,000 176,500 420,300 $11,453,100 198,800 1,804,570 x 885,850 127,400 1,202,560 i 23,115 224,200 388,400 i 242,950 252,580 Total... 21,660,305 37,931,700 16,271,395 Bank. . i Excess received. SCHEDULE 40.—Principal items from statement of selected banks, Dec. 28, 1917, and Dec. 27, 1918. [000 o m i t t e d . ] Loans N e t deU n i t e d T o t a l secured All other| Reserve] mand by I S t a t e s U n i t e d 'deposits N u m - certifiloans with T i m e GovernStates United Cash in| on ment a n d b e r of cates of securiFederal! v a u l t . deStates m w h i c h deb a n k s . indebtposits. b o n d s i n v e s t - Reserve! ties reserve p osits. m e n t s . Bank. o w n e d . a n d ceri s comtificates. puted. Boston: 1917 1918 O u t s i d e of B o s t o n : 1917 1918 $45,921 14,374 '$14,188 $36,753 |$489,467 $46,537 $18,369 l$408,104 $28,433 61,172 69,055 462,268 45,727 17,231 ' 449,855 22,227 14,238 34,420 7,389 16,069 169,952 175, 720 10,185 10,346 6,711 7,597 120,043 127,298 SCHEDULE 41.—Amount of checks handled by the transit $33,767 26,762 48,452 50,117 5,707 7,596 department. [000 o m i t t e d . ] On other b a n k s in this district. On b a n k s i n B o s t o n Clearing H o u s e . January February March April May June July August September October November December .' : Total R e c e i v e d from Boston banks. R e c e i v e d from other banks. 1917 1917 1917 1918 $128,625 130,031 168,669 195,460 209,634 269,424 288,942 289,565 264,028 292,272 357,385 353,688 $341,288 288,249 347,749 405,416 442,529 580,929 501,702 456,349 425,558 612,811 598,042 587, 616 $63,272 52,326 64,364 67,646 71,096 70,958 74,640 72,286 67,992 83,132 84,105 82,047 $76,733 66,470 91,118 94,130 98,310 100,511 116,980 142,491 132,202 150,409 142,774 142,664 $19,540 17,938 21,788 26,957 32,686 36,389 34,370 34,834 34,079 38,927 41,100 42,845 $44,692 43,562 47,853 54,561 59,995 127,931 75,392 82,741 83,837 126,280 131,603 135,317 2,947,723 5,588,238 853,864 1,354,792 381,453 1,013,764 1918 1918 DISTRICT NO. 1 BOSTON. SCHEDULE 41.—Amount of checks handled by the transit January February March April May June July August September October November December . Total department—Continued. O n b a n k s i n other districts. On Treasurer of United States. 1917 313 1917 1918 1918 Total. 1917 1918 $3,918 2,467 3,950 3,886 3,777 10,121 21,625 23,867 31,243 39,531 49,831 51,981 $53,693 49,067 62,452 64,188 82,473 89,943 105,785 156.068 108,790 124,663 123,211 147.094 $63,589 69,303 86,059 103,066 103,043 125,289 129,308 116,865 95,340 97,404 98,228 93,276 $115,432 84, 305 92, 665 113,823 101,513 98,339 129,361 115,132 117,629 145,919 122,909 90,160 $278,944 272,065 344,830 397, 015 420,236 512,181 548,885 537,417 492,682 551,266 630,649 623,837 $631,838 531,653 641,837 732,118 784,820 997,653 929,220 952,781 868, 016 1,160,082 1,118,539 1,102,851 246,197 1,167,427 1,180,770 1,327,187 5,610,007 10,451,408 SCHEDULE 42.—Collateral department—Coupons cut. Number Number Amount of banks. of coupons. of coupons. May June July August September. October... November. December.. 257 142 74 73 217 114 307 230 62,559 15,941 2,191 1,637 65,150 6,424 37,137 14,530 $651,341 127,297 47, 320 43,135 318,607 158,672 708,569 179,257 Total 1,414 205,569 2,234,198 SCHEDULE 43.— Discount rates. Secured b y U n i t e d S t a t e s obligations. Maturities of 15 d a y s or less. Maturities of 16 t o 90 days. Agricultural and live-stock p a p e r , 91 days to 6 months. 4 4 4 4 5 5 42 42 5 5 5 5 Dec. 12, 1917 J a n . 7, 1918 A p r . 8, 1918 Oct. 1,1918 T r a d e acceptances. 15 d a y s or less. 4 4-i 3i 4V 4* 4 4 SCHEDULE 44.—Money rates in Boston, Demand money Commercial paper discounted: 90 days or under Over 90 days Commercial paper purchased: 90 days or under Over 90 days Bank borrowings Acceptances: Indorsed Unindorsed Year money Town notes Loans secured by United States obligations for FRASER Digitized January. February. G-6 March. Carrying coupon r a t e fourth 16 t o 90 Liberty days. loan b o n d , 16 t o 90 days. 4 4 41 4i 4 1918. April. May. June. 6-6 6-6 5-6 5-6 5-6 5.1-6 5J-6 52-61 5|-6 5|-6]; 52-6 51-61 52-6 5f-6i 5f-6 52-61 5^-6 5f-6i 5J 5|-6 5|~6i 5i 5^-6 5|-6i 5J 5f-6 51-61 5i 5|-6 5|-61 5£ 6-6 51-61 6i 4-416 4.75-5.63 3I-4| 4-41 6 5.06-5.39 4i-4i 41-4J 6 5.0 -5.74 51-41 4A-41 6 5.06-5.72 4J-4A 4-&-41 6 4.69-5.50 4J-4A 4A-4& 6 4.43-5.04 4-5 4-5 4-5 4-5 4|-5 41-5 314 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. SCHEDULE 44.—Money rates in Boston, August. September. 5J-6 5J-6 5f-6 5i-6 4f-6 6-6 5| 6-6 6-6 6-6J 6-6£ 4-4J 4-4J *rV4A 6 4.19-4.65 6 4.70-4.91 4iV4A 4A-4J 6 4.24-4.60 41-5 41-5 4i-5 July. Demand money Commercial paper discounted: 90 days or under Over 90 days Commercial paper purchased: 90 days or under Over 90 days Bank borrowings Acceptances: Indorsed Unindorsed Year money Town notes Loans secured by United States obligations 1918—Continued, 5J-6 4-4f A -A T , 6 4.22-5 41-5 6 4-4.38 4|-5 October. November. December. 6-6 6-6 6-6 5J-6 5f-6i SHHfc 6-6i 6-6J 6-6J 6-6| 5f-6i 6-££ 6-6* 6-6J 6-6J 6-6J 5f-6i 6-6i 6J SCHEDULE 45.—Bank clearings in New 4fW* 4i-4A 6 4-4.37 4i-5 England. [Figures in thousands of dollar.-; from clearing-house cities.] x 1915 January February. March April June July August September October November December Total 1916 1917 1918 1918 2 774,008 670,835 783,254 851,617 803,485 780,657 829,872 702,790 704,006 1,008,557 1,019,200 999,816 1,040,224 952,310 1,099,879 1,060,009 1,076,603 1,056,426 1,041,174 890,888 940,031 1,172,621 1,298,280 1,234,647 1,237,922 1,063,847 1,159,100 1,199,335 1,200,624 1,251,661 1,308,358 1,195,002 1,107,1Q4 1,374,657 1,447,019 1,365,268 1,349,779 1,108,908 1,288,689 1,414,114 1,619,670 1,720,029 1,588,308 1,481,533 1,306,456 1,751,890 1,650,132 1,631,683 2,477,136 2,581,875 2,967,972 9,928,097 12,863,092 14,909,897 17,911,191 8,026,983 i As reported in the Commercial and Financial Chronicle. 2 As reported to Federal Reserve Board, includes all checks on members of clearing houses, whether "cleared" or not. SCHEDULE 46.—Building activity in New F i r s t half year. 1912 1913 1914 1915 1916 1917 1918 Average England. Second half year. Total. $102,960,000 86,174,000 89,212,000 88,475,000 106,890,000 99,950,000 73,142,000 $68,207,000 113,291,000 82,655,000 74,471,000 74,998,000 109,150,000 125,732,000 $171,167,000 199,465,000 171,867,000 162,946,000 181,888,000 209,100,000 198,874,000 92,400,000 81,063,000 161,913,000 315 DISTRICT HQ. 1—BOSTON. SCHEDULE 47.—Business through the port of Boston. [000 omitted.] Exports. January February March April June July August September October November December Total 1 Excess o p imports. Imports. 1917 1918 1917 1918 $24,193 22,390 19, 707 20,509 18,034 14,882 13,913 17,286 10,815 14,495 13,513 19,141 $20,910 11,294 21,108 22,369 23,889 17,262 20,725 12,936 10,534 19,326 19,257 22,987 $32,419 21,743 24,816 25,810 20,306 21,158 16,415 14,350 14,117 8,033 9,356 26,658 208,878 222,597 235,181 .1917 1918 $31,656 15,965 27,106 27,527 35,147 37,554 22,611 17,422 17,674 25,096 26,243 22,862 $8,226 1647 5,109 5,301 2,272 6,276 2,502 12,936 3,302 16,462 i 4,157 7,517 $10,746 4,671 5,998 5,158 11,258 20,292 1,886 4,486 7,140 5,770 6,986 1 125 306,863 26,303 84,266 Excess of exports. SCHEDULE 48.—Commercial failures in New England.1 1916 Number. New Hampshire Vermont Massachusetts R h o d e Island Connecticut Total Liabilities. 1918 1917 Number. Liabilities. Number. Liabilities. 220 63 59 928 113 307 $1,994,616 223,117 602,54410,326,675 586,464 2,132,970 151 49 48 895 105 319 $1,424,353 380,768 422,831 10,777,064 503,488 8,642,146 135 38 36 739 124 272 $1,516,696 243,919 363 240 13 010 340 683*456 4,167,709 1,690 15,866,386 1,567 22,150,650 1,344 19,885,360 i Figures as reported by R. G. Dun & Co. DISTRICT NO. 2—NEW YORK. P I E R R E JAY, Chairman and Federal Keserve Agent. RESULTS OF OPERATION, BALANCE SHEET. Schedule 1 shows the condition of the Federal Reserve Bank of New York on December 31, 1918, 1917, and 1916. The increase in nearly every item in the balance sheet for 1918 is an indication of the increased rise by member banks of the facilities of the Federal Reserve Bank in order to maintain their reserves and to provide the loan expansion which the financing of the war has necessitated. The various items will be commented on in detail under the appropriate headings. A table and chart showing by weeks the volume of notes and deposits, together with the course of the reserve percentage, are given on pages 382 and 383. INCOME AND EXPENSE. The income and expenses of the bank during the years 1918 and 1917 are shown in Schedule 2. The great expansion in the business of the bank during 1918 has been reflected not only in increased income, but also in increased expenses, although earnings naturally increased far more than expenses. Most of the items of income are self-explanatory. The amount of service charges received decreased because these charges, imposed to cover the cost of collecting checks, were abandoned on June 15. The items of expense have been further subdivided during 1918, many items heretofore included under general expense having been placed under separate headings. Almost ever}^ item reflects the expansion in staff, space and equipment which the immense volume of business transacted during the year has necessitated. At the close of the year, with the approval of the Federal Reserve Board, a further amount of $299,375 was set aside in the depreciation reserve account to provide against certain penalties for canceling leases in the Equitable Building should the bank erect its own building, and to provide against possible unascertained losses. Also, under the same approval, $803,800 was charged off, representing the estimated value of buildings now standing on the site pur 317 318 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. chased during the year. Dividends at the rate of 6 per cent for the year were paid; $7,672,676.44 was carried to surplus, bringing the surplus up to the 40 per cent of paid-in capital which the present law permits; and $12,795,214.57, being the balance of the net earnings, was set aside as a franchise tax payment subject to the call of the Treasury Department, pending the consideration b y Congress of a bill recommended by the Federal Reserve Board which would permit larger amounts of the net earnings of Federal Reserve Banks to be retained as surplus. The expenses shown in the foregoing statement do not include the expenses of the departments of the bank performing its fiscal agency functions or the expenses of the Liberty loan and certificate of indebtedness selling and publicity organizations, all of which are reimbursed directly by the Treasury Department. DISCOUNT RATES. The discount rates established by the bank during the year and the rates at which bankers' acceptances have been purchased in the open market are shown in Schedule 3. Throughout the year the rate policy of the bank has been necessarily influenced by the policy of the Treasury Department with respect to the interest rates on the bonds and certificates of indebtedness which it has sold. The only change occurred on April 6, when an understanding was reached, with the approval of the Federal Reserve Board, under which all of the Federal Reserve Banks established a rate of 41 per cent for discounting 90-day paper secured by United States Government obligations. This rate, conforming to the coupon rate of the third and fourth Liberty bonds, was continued for the balance of the year. At the same time the rate of this bank on 90-day commercial paper was advanced to 4f per cent, at which level it was still below the market rate for such paper, as it has been ever since the United States entered the war. While the rates of the Federal Reserve Bank normally should remain at or above the market rate, under prevailing abnormal conditions this was impracticable, since it was felt t h a t a further advance in the 90-day rate on commercial paper might affect unfavorably the rates at which the Government was financing and that, in view of the Government's policy of financing at low rates of interest, the Federal Reserve Bank should maintain steady and correspondingly low discount rates and endeavor in individual cases to check any tendency toward taking advantage of the low rates for the mere purpose of profit making. Owing to the differential of one-half of 1 per cent between the rate on commercial paper and the rate on Government-secured paper, the bulk of the paper held by the bank has been of the latter class, which was natural in any event, since it was primarily the Govern- DISTRICT NO. 2 — N E W 319 YORK. ment borrowings which compelled the banks to discount so heavily at the Federal Reserve Bank. Since early in 1915 the bank has established maximum and minimum rates within which it has purchased bankers' acceptances. This policy was adopted at the inauguration of open-market transactions, as it did not seem wise at that time to establish a fixed discount rate on these bills. During the past year, however, the development of the market has reached a point at which a stabilizing influence was necessary and fixed rediscount rates as shown in the table for bankers' acceptances were accordingly established on October 1, under authority • of section 13 of the Federal Reserve Act. While the banks have not yet needed to exercise their rediscounting privilege under this rate, as the market rate has been steadily lower, its establishment has undoubtedly exercised a beneficial influence on the stability of openmarket operations. During the year member banks, especially those in New York City, have continued to use the 15-day rate very extensively. I n fact, the great bulk of their accommodations has been for periods of 15 days or less and many of the largest banks borrow for from one to three days only. B y providing for these " day-to-day'' loans, the Federal Reserve Bank has furnished its members a recourse as quick and flexible as the call-money market, which, in view of the wide fluctuations in their liabilities caused by Government financing, has been of great service to them and enabled them not merely to secure promptly such large accommodations as they have required from time to time, but to pay them off with equal promptness and facility. The arrangements made permitted these short discounts and advances to be effected on either commercial or Government-secured paper and at the same rate. INVESTMENTS OF THE FEDERAL RESERVE DURING DISCOUNTS, ADVANCES, AND BANK OF NEW YORK 1918. PURCHASES, AND THEIR RELATION TO RESERVES. As the war progressed it became increasingly necessary for the banks to have recourse to the Federal Reserve Bank. The following figures show the maximum use of its credit facilities in each of the Liberty loan financing periods to date: Maximum discounts,advances, and investments. Financing period. Date. First Liberty loan Second Liberty loan. Third Liberty loan... Fourth Liberty loan. $278,649,000 522,363,000 655,587,000 958,293,000 June Nov. May Dec. 19,1917 30,1917 10,1918 30,1918 320 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Each of these high points was followed by a period of contraction which, however, never reached the preceding base, so t h a t the expansion was progressive, though not continuous. While this heavy borrowing from the Federal Reserve Bank was caused fundamentally by Government financing, its direct relation was to the condition of the reserves of member banks rather than to the sales of Government securities. As the Government deposits created by the sales of securities and not requiring reserves to be maintained against them were transformed through Government disbursement into private deposits upon which reserves had to be maintained, the banks had to borrow to create these additional reserves. Furthermore, interior banks throughout the year continued to meet withdrawals of Government deposits by drafts on their New York correspondents, thereby causing a constant flow of funds from New York to the interior and requiring the New York banks to replenish their reserves at the Federal Reserve Bank until the funds thus withdrawn were returned again through Government transfers. The following chart shows the gold holdings of the bank during the year and the aggregate amount of its loans and discounts. Aside from the gradual but steady increase of the gold held by the system, the fluctuations in the amount of gold held b y this bank represent its gains or losses through the settlement of balances with other Federal Reserve Banks. The closeness with which the borrowings of member banks follow the fluctuations in the gold holdings of this bank clearly substantiates the views expressed in the foregoing paragraph. DISTRICT NO. 2 rsos^i 100823°—19 21 /?£S£/ey£ 321 N E W YORK. SAA/X OF MEW vo/r/c 322 ANNUAL REPOKT OF THE FEDERAL RESERVE BOARD. The increase in the note and deposit credits granted b y the Federal Reserve Bank of New York during the year has at times reduced t h e reserve of the bank very materially. At the close of 1917 the average reserve against all liabilities was 61.7 per cent. At the close of 1918 this had fallen to 44.5 per cent. The corresponding figures for the entire Federal Reserve system are 61.8 per cent and 50.6 per cent. These figures are far more significant than those of any individual Federal Reserve Bank, since through rediscounting or the sale of bills or other securities, the reserves of the various Federal Reserve Banks are so readily equalized. Twice during the year, in order to strengthen its reserve position, this bank sold bills, aggregating in all $97,274,364.32, to other Federal Reserve Banks. At other times during the year it rediscounted paper totaling $67,680,848.93 for other Federal Reserve Banks in order to strengthen their reserves. These transactions indicate the effectiveness of the transfer of reserves through the Federal Reserve system as a whole concurrently with the operation of the system as twelve separate units, each especially equipped to understand and care for the needs of its own district. The figures of the reserves of this bank and of the Federal Reserve system when the United States entered the war and at the close of 1918 are as follows: Dec. 27,1918. Percent. 42.5 50.6 Federal Reserve Bank of New York All Federal Reserve Banks Apr. 6, 1917. Per cent. Amount. $637,295,000 2,146,219,000 Amount. 92.9 84.7 $426,814,000 962,662,000 The following is a statement of member bank discounts and advances during 1918 and 1917: 1917 Number of items. January February.. March. April May June July August September. October November. December.. 5,552 7,441 7,882 6,446 10,802 11,653 14,323 15,016 11,993 13,498 15,457 8,975 Total. 129,038 Amount. $299, 141,079.59 267; 801,380.25 321, 342,092. 09 1,460,681,317.41 2,181,143,351.44 2,290,684,904.35 1,935,041,787.56 2,306,086, 869. 85 2 — 616,075.93 3; 713,305, 674.14 2,948,291,085.09 3,918,402, 840.07 24,535,538,457.77 Number of items. Amount. 148 171 237 267 523 2,034 1,346 1,254 1,625 2,544 3,213 9,122 $598, 162.06 1,925,351.05 3,062,583.13 2,439,223.25 6,545,273.25 552,976,458.11 262,366,105.28 53,024, 394. 21 319,543, 993.34 2,382,893, 110.97 2,663,667, 291.90 262,232, 974.93 22,484 6,511,274,921.48 DISTRICT NO. 2 N E W YORK. 323 The immense volume of discounts and advances shown arises from the practice which many member banks pursue of borrowing for a few days, often only one day, with renewals, as required, for varying amounts. On several occasions the bank has purchased from the Treasury special certificates of indebtedness payable within a few days, aggregating in all $3,133,000,000, in order to supply the special needs of the Treasury pending the transfer of funds from other Federal Reserve Banks or the withdrawal of funds from depositary banks. The largest amount thus held at any one time was $195,000,000. In order to facilitate the purchase of certificates of indebtedness by nonmember banks, the bank has been ready to purchase such certificates, with an agreement on the part of the nonmember Bank to repurchase within 15 days. The largest amount thus held at any one time was $12,313,500 on November 19. In order to assist in making a more stable carrying market for bankers' acceptances for houses which deal in such bills, the bank has from time to time during the year purchased bills at slightly above current rates from such houses with an agreement on their part to repurchase within 15 days, the largest amount of such purchases at any one time having been $8,222,000, on October 9. This, however, has been considered as a purely temporary policy during the development period of the discount market. The following figures give certain data concerning the discounts and advances of 1918 and 1917: Number of applications received 14,831 2,513 Amount of applications received $24,552,063,650.44 $6,528,455,050.30 Amount of applications accepted and discounted or advanced upon $24,535,538,457.77 $6,513,225,285.60 Largest application $135,000,000.00 $167,000,000.00 Smallest application $5.02 $50.00 Number of pieces of paper discounted or advanced upon 129,038 22,484 Largest piece of paper discounted or advanced upon $135,000,000.00 $147,000,000.00 Smallest piece of paper discounted or advanced upon $5.02 $25.00 Average size of notes discounted or advanced upon $190,141.96 $289,682.67 Number of banks rediscounting 522 322 324 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. BANKERS ACCEPTANCES AND THE DISCOUNT MARKET. The monthly purchases of bankers' acceptances and indorsed trade bills b y this bank for itself and other Federal Keserve Banks during 1918 have been as follows: For account of Federal Reserve Bank of New York. For account of other Federal Reserve Banks. Number of items. Number of items. Month. January February.. March April May June July August..... September. October November. December.. Total.. Amount. 4,154 3,910 3,175 2,775 2,866 1,573 2,172 3,190 4,211 3,414 3,519 2,202 $80,010,607.18 91,970. 834.83 75,850,840.39 57,952,753.91 61,379,509.85 39,567,561.89 62,862,728.69 91,862,018.00 115,774,488.26 105,567,788.66 100,177,148.45 62,521,143.43 819 540 447 286 320 442 430 574 849 1,605 1,018 812 $13,130,089.64 11,618,304.90 8,294,522.94 3,175,214.24 4,024,431.26 7,540,528.48 11,714,855.80 14,002,126.66 18,736,191.24 42,586,604.09 21,587,604.22 18,454,071.11 37,161 945,497,423.54 8,142 174,864,544.58 CLASSIFICATION. Import and export Domestic Indorsed trade bills of foreign origin Bills drawn to furnish dollar exchange. Domestic trade acceptances Repurchase agreement Total.. 609,705,533.69 246,957,105.74 16,224,317.49 5,452,702.24 3,543,131.62 63,614,629.76 113,870,892.74 59,348,612.76 1,391,552.93 246,400. CO 7,086.15 945,497,423.54 174,864,544.58 Increased and more general use of the bankers 7 acceptance has been a striking development of the past year, especially in financing domestic transactions and in the storage and movements of the grain and cotton crops. The volume of foreign drawn bills appearing in this market, while reflecting the increased trade with the Orient, has n o t increased proportionately with t h e volume of domestic bills, due in part to shipping difficulties and in part to the settlement of a greater volume of both imports and exports b y cash rather than b y drawing bills. As compared with estimates of $400,000,000 to $500,000,000 of bankers' acceptances and foreign trade bills on American merchants outstanding a t t h e end of 1917, it is now believed t h a t there are between $700,000,000 to $800,000,000 of bankers' acceptances alone outstanding in t h e United States. The following figures, taken from published reports of institutions in this Federal Reserve district, show the amounts of acceptance liabilities of national banks, trust companies, and State banks on t h e dates indicated: DISTRICT NO. 2 — N E W 325 YORK. September, 1918. September, 1917. September, 1910. National banks Trust companies State banks $141,934,391.42 124,038,547.88 9,841,533.62 $73,717,000 91,424,509 7,355,910 $44,300,877 68,588,558 2,787,995 Total 275,814,472.92 172,497,419 115,677,430 These figures, however, do not indicate the full measure of increase for the country. The number of well-known banks located in other cities that are now accepting is greatly increased and much of their paper comes to New York for discount. With the increase in number of accepting banks and volume of bills circulating, the number of bill buyers has likewise increased. Out-of-town banks are buying more freely, and many of those which are now acceptors have also become buyers. Dealers report increased activity and interest in almost all parts of the country. The turnover of some houses has more than doubled that of last year. One house reports sales of $720,000,000 for this year as against $358,000,000 in 1917. During the year there have been accessions to the number of houses that specialize as dealers in bankers' acceptances. Also several corporations organized to operate as discount houses have been formed. Some of them are in operation and others are still in process of organization. Also several important foreign trade banks have come into existence and are operating. Perhaps, however, more significant of the trend of intelligent opinion as to the future of New York as an international financial center is the number of foreign banks and bankers that have already established or are about to establish branches or relations here. The outstanding development of the year 1918 toward the firmer establishment of an open discount market in America was recognition of the fundamental necessity for a stable volume of call and short time money available to dealers and discount houses at rates related to the open-market rates for bills as distinguished from rates for loans against investment securities or so-called brokers' loans. While money of this character has occasionally been available, it was not until a leading banking house publicly announced its policy of lending freely on bills at preferred rates—a policy subsequently adopted by several other institutions and houses—that money in sufficient volume was available to enable dealers to carry portfolios of bills without the risk of such interest losses as to render it impracticable for them to operate other than as mere traders. As has already been stated, the Federal Reserve Bank has from time to time purchased bills from dealers, under their agreement to repurchase within short periods, at a rate of 4J per cent per annum. Their recourse to this 326 A N N U A L REPORT OF THE FEDERAL RESERVE BOARD. aid has been moderate and not continuous. I t is hoped t h a t more and more banks, recognizing the advantages to the country and to themselves of a broad and active open market, and the important relation of dealers in bills to the development of such a market, will add their support by providing dealers normally with the necessary funds at rates closely related to the current bill rates, as is customary in foreign markets. Bill rates in the open market have been the most stable and the lowest of all money rates. As compared with short-time United States certificates of indebtedness bearing interest at from 4 per cent to 4 J per cent, the primary market discount rates on bills of the bestknown names has not exceeded 4J per cent for the 90-day maturity and has ranged down to 3 J per cent. The ruling rates were, during January and February, 4 per cent; from February to July, 4J per cent to 4J per cent, the higher rate being reached during the period of Federal income tax payments; after slight recessions rates advanced gradually to from 4f per cent to 4J per cent in October when fourth Liberty loan financing was at the peak; later, rates declined, on easier money conditions, to 4 | per cent at the year's end. Generally speaking, the rates referred to were those quoted for unindorsed bills which are offered for resale to investors at slightly lower rates of yield. The Federal Reserve Bank has maintained its policy, established last year, of buying practically only indorsed bills and at rates related to those established by competition and supply and demand in the open market. I n purchasing it has continued to emphasize its preference for short bills b y paying rates graduated down to published minima, according to maturities. While its purchases have supported and stabilized the market, its rates have been generally above the market for maturities other than the shortest period. Consequently the average maturity of bills held b y the bank has been reduced and a wider distribution of bills to an increased number of buyers has been effected, with a correspondingly increased diversification of indorsers on bills held by the bank. The Federal Reserve Bank as a further stabilizing step, and in addition to its open-market purchases, established special rediscount rates for the rediscount of bankers' acceptances under section 13 of the act. These rates, established October 1, remain unchanged and are: Maturities up to 15 days, 4 per cent; maturities 16 to 60 days, inclusive, 4J per cent; maturities 61 to 90 days, inclusive, 4J per cent. During the year other Federal Reserve Banks did not participate as freely as heretofore in the open-market purchases of the New York bank, owing to increased demands in their respective districts and also to the greater activity of their own member banks in both accepting and buying bills, many of which found their way to their district banks. Nevertheless there have been many transactions between DISTRICT NO. 2 N E W YORK. 327 Federal Reserve Banks, the Federal Reserve Bank of New York having bought from and sold to other Federal Reserve Banks, as well as having bought in the market for their account. During the year the banking laws of the State of New York were modified to permit savings banks to invest in bankers' acceptances. While a few of them have purchased from time to time in the open market, the volume of their purchases has not been in proportion to their indicated desire to carry portfolios of bills, as funds which otherwise would have been employed in this way have been largely invested in United States Treasury certificates of indebtedness. TRADE ACCEPTANCES. The increased number of domestic trade acceptances offered for rediscount at the Federal Reserve Bank not only is evidence of the progress of the movement, but indicates also t h a t commercial banks are discounting them for customers more freely and are purchasing them in the open market. The amount rediscounted and purchased by the Federal Reserve Bank during 1918 was $31,903,092.74. Much progress has been made during the year in the development of the trade acceptance plan of closing accounts in domestic merchandise transactions. Under the direction of the American Trade Acceptance Council many informal meetings were held at which plans for adapting the system to particular lines of trade were discussed and developed. Much was also accomplished through economic discussions at more formal gatherings. Trade associations, chambers of commerce, and credit associations have formally recommended the use of the trade acceptance and emphasized the importance of the movement. Many trade and business associations have formally recommended that their members adopt the system, and in some lines selling terms have been modified to include settlement by trade acceptances in all transactions not settled by spot cash or short discounts. I n others modified terms, attractive to the buyer, have been offered as inducements to their use. I t has been estimated that more than 4,000 representative concerns now use the system. Domestic trade acceptances have appeared in the open discount market more generally this year than before, and where the names are well known they find ready sales at favorable rates. These bills usually come in fair-sized pieces—say, from $5,000 up—and to avoid too large pieces several bills of marketable size are often drawn to cover in their aggregate larger transactions. A new development this year has been the offering in the open market of trade acceptances bearing banking indorsements. This class of bill resembles more nearly the bankers 1 acceptance as to the credit involved and commands a lower rate than those not so indorsed. 328 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. The character, form, and manner of execution of bills offered as trade acceptances for rediscount at the Federal Reserve Bank indicate t h a t merchants and bankers would do well to give more careful consideration both to the inherent limitation of the instrument to current bona fide transactions between buyer and seller and to technical details, such as legal or official signatures of drawers, acceptors, and indorsers, and the avoidance of change or alteration in date, domicile, or any other of the terms of the bill as drawn. Any such irregularities render the paper practically unsalable in the open market and ineligible for rediscount at Federal Reserve Banks. I t is perhaps not unnatural t h a t with many presentations from different points of view,of the theories and practices involved in the establishment of the trade acceptance system some misinformation and misunderstanding has developed, b u t it is expected t h a t with continued study of its problems these will be overcome and disappear. The American Trade Acceptance Council is, in process of reorganization into The Acceptance Council, and in its new organization will combine trade acceptances and bankers' acceptances as the dual subject of its activities. UNITED STATES BOND OPERATIONS. In 1917 the Federal Reserve Board did not require Federal Reserve Banks to purchase United States 2 per cent bonds bearing the circulation privilege from member banks. This policy has been continued during 1918. During the year the Treasury has paid off $4,492,000 of 1-year 3 per cent notes previously received by the bank in exchange for United States 2 per cent bonds. The Federal Reserve Bank has purchased $34,955,000 United States 2 per cent certificates of indebtedness of a special character which it has hypothecated as security for Federal Reserve bank notes. MUNICIPAL WARRANTS. During 1918 only one purchase of a municipal warrant was made, the amount being $50,000. MATURITIES. The following statement shows t h e maturities of discounts and advances held by the bank on December 31, 1918: Discounts or Discounts or advances based advances based on commercial on United States paper. securities. Bankers' acceptances. Totai. Within 15 days 16-30 days 31-60 days 61-90 days Over 90 days... $32,804,406.83 4,168,348.13 5,866,121.59 1,934,028.42 876.00 $498,635,511.87 106,051,692.49 34,093,216.75 13,787,253.61 $32,258,211.94 13,011,993.37 27,073,860.31 5,232,567.32 $563,698,130.64 123,232,033.99 67,033,198.65 20,953,849.35 876.00 Total.... 44,773,780.97 652,567,674.72 77,576.632.94 774,918,088.63 DISTEICT NO. 2 — N E W YORK. 329 NOTE ISSUES AND THE ACCUMULATION OF GOLD. Throughout the year Federal Reserve notes have been freely issued, as required by member banks, and the interchangeability of Federal Reserve bank deposits and notes has been maintained as heretofore. The net circulation of Federal Reserve, notes of this bank rose during the year from $397,000,000 to $729,000,000, an increase of $332,000,000. While some part of the increase is due to the policy of exchanging Federal Reserve notes for gold or gold certificates, which has been consistently pursued since the bank began business, the chief cause of the expansion was the demand for more notes with which to carry on the constantly increasing volume of trade at rising price levels. Higher prices and higher wages, with the larger pay rolls and larger amounts of till and pocket money which they necessitate, inevitably cause a large demand for circulating media, and during the war this phenomenon has been common to all the belligerent countries, even in Great Britain, where, as in the United States, settlements are made mainly by checks. A considerable quantity of Federal Reserve notes has been shipped during the year to Central American and West Indian countries for circulation purposes, and since the signing of the armistice the War Department has sent considerable amounts of Federal Reserve notes to France, in order that our returning soldiers may be supplied with American instead of French currency. The note expansion has been perfectly natural and not in any way forced; the notes have been redeemable at all times in gold; and the aggregate increase in the amount of Federal Reserve notes outstanding does not represent a net addition to our circulating media, since a large part of the increase represents merely an exchange of Federal Reserve notes for gold. The amendment of September 26, 1918, now permits the issue of Federal Reserve notes in denominations of $500, $1,000, $5,000, and $10,000. These notes, of which a supply of the $1,000 denomination has already been received, will be of service in enabling the banks to avoid the necessity of paying out gold certificates of large denominations. The redemption of Federal Reserve notes of this bank unfit for circulation during 1918 amounted to $226,722,730. Since August, in order to cooperate with the Treasury Department in its desire to secure silver certificates and break .up the silver which they represent for export to India and other countries, the bank, by authority of the Federal Reserve Board, has issued Federal Reserve bank notes in denominations of $1, $2, $5, and $10. These notes, which are similar to national-bank notes, are secured by special 1-year 2 per cent certificates of indebtedness issued for the purpose to the Federal Reserve banks by the Treasury and held by it 330 A N N U A L REPORT OF THE FEDERAL RESERVE BOARD. as security for the notes. The amount of Federal Reserve bank notes of this bank issued and outstanding on December 31 was $33,034,000, of which $10,585,000 were fives, $1,434,800 tens, and the balance ones and twos. The total amount of silver notes shipped by this bank to the Treasury Department during the same period was $21,528,000. Both member and nonmember banks have cordially cooperated by sending in silver certificates for exchange into Federal Reserve bank notes at the expense of this bank. In order to assist in accumulating gold, since America entered the war this bank has asked its member banks to sort out gold certificates from incoming cash and send them to the Federal Reserve Bank in exchange for Federal Reserve notes. In this way this bank and its member banks have been able to contribute their share to the increased gold holdings of the Federal Reserve System. Furthermore, the United States Treasury has continued its policy of returning Federal Reserve notes to banks forwarding gold certificates for redemption. No premium has arisen on gold in this district, and this bank has at all times been ready to pay out gold to its member banks as required by them for purposes consistent with the policy of the Government. Under the provisions of the President's embargo proclamation of December 7, 1917, the Federal Reserve Bank of New York during 1918 forwarded to the Federal Reserve Board 1,163 applications for permission to export gold, silver, or currency aggregating $295,000,000, of which it recommended that 349 applications aggregating $26,000,000 should be granted. COLLECTIONS AND CLEARINGS, THE COLLECTION SYSTEM. The following table shows the various classes and amounts of checks handled during 1918 by this bank and its check-collection department: [000's o m i t t e d in c o l u m n s h e a d e d " a m o u n t . " ] I t e m s on o t h e r Federal Reserve B a n k s . I t e m s on b a n k s i n other F e d e r a l R e serve districts. Num- Amount. Number. ber. January February March. April May June July August September October December Total Amount. I t e m s on b a n k s i n district N o . 2. Number. Amount. I t e m s on N e w Y o r k Clearing H o u s e . Number. Amount. 388 314 557 513 419 330 286 240 216 191 240 165 $4, i n 4,543 5,460 6,394 6,636 3,706 2,016 1,500 1,277 203 177 376 551,505 490,797 614,882 687,963 686,939 704,897 867,169 891, 802 910,132 941,333 810,338 849,563 $360,051 288,902 384,265 411,076 421,714 414,156 438,666 443,513 484,428 426,656 394,011 401,835 1,037,390 910,890 1,144,571 1,266,645 1,336,806 1,520,043 1,907,089 2,059,871 1,985,111 3,086,818 3,335,218 3,560,669 $843,307 736, 730 935,942 1,026,071 1,085,440 1,110,744 1,227,186 1,286,131 1,256,126 1,900,815 1,620,297 1,263,356 144,012 136,040 173,025 202,939 240, 871 350,557 295, 222 254,256 267,919 363,935 349,557 408,968 $1,614,331 1,484,633 1,617,768 1,927,746 1,894,694 1,849,555 1,903,747 1,952,715 2,092,561 2,593,787 2,214,451 2,238,028 3,859 36,399 9,007,320 4,869,273 23,151,121 14,292,145 3,187,301 23,384,016 DISTRICT ^ O . 2—NEW YORK. 331 The growth of the check-collection department may best be illustrated by the following figures: Period rGTloa 1915 ( J u n e 1-Dec. 31). 1916 1917 1918 N u m b e r of items handled, 1,262,211 6, 841,364 19,408,179 35,349,601 $1,334,015,772 5,160,192,000 20,104,527,000 42,581,833,000 The development of the collection department showed greater progress in 1918 than any preceding year. This was due to several reasons: (a) The elimination on June 15 of the service charge of 1 cent per item for collecting checks and cash items; (6) the rule adopted by the New York Clearing House, effective October 1, providing t h a t its members should neither pay a higher charge for the collection of checks on banks on the Federal Eeserve par list than would be incurred in collecting such items through the Federal Reserve Bank, nor allow the paying bank to hold back the remittance beyond the day on which the item is received; (c) the abandonment by the New York Clearing House on November 15 of its out-of-town collection system; (d) the increase in the number of banks throughout the United States on which checks could be collected by the Federal Reserve banks at par, from 17,144 in January, to 18,997 in December. The Federal Reserve Bank of New York has continued to accept at par checks on every national bank, State bank, and trust company in the district, although, as stated in the last report, a few of the banks are not yet willing to remit at par and the Federal Reserve Bank has been obliged to collect checks drawn upon them either through express companies or by the establishment of local collecting agencies. The number of these banks on January 1 was 76; on December 31 it had been reduced to 42. The result of the change in the constitution of the New York Clearing House, above referred to, was to make it advantageous to the members of the association to send to the Federal Reserve Bank their out-of-town items on banks t h a t were on its par list. This caused the number of checks handled on banks outside of New York City to increase from 2,895,243 in September to 4,028,151 in October. The prevalence of the influenza epidemic during these months made it impossible to augment the staff of the transit department, even with inexperienced clerks, sufficiently to handle this immense volume of items with promptness and efficiency, and for a few weeks the work fell below the normal standard. Contemporaneously with the great increase during October in the volume of checks actually handled by the department, a large volume of 332 ANNUAL BEPOKT OF THE FEDEKAL RESERVE BOARD. checks began to be sent by New York City banks direct to other Federal Reserve Banks for their credit with this bank. While this saved one handling, it complicated the accounting considerably, especially with respect to "returned i t e m s / ' and for a time added to the difficulties caused by the increased volume. To meet this situation, a staff of about 60 clerks was engaged to begin work at 5 p . m. and to continue until midnight in addition to the normal staff working from midnight to 8 a. m., and the main day staff. These three shifts, together with further subdivision of the work of the department, have solved the main difficulties encountered, and the increased volume of checks, averaging in December 186,706 per day, is now being handled in a satisfactory manner. The staff of the department increased from 152 in January to 445 in December. The facilities of the Federal Reserve Bank are also being increasingly used for the collection of notes and drafts, both in and out of New York City, the number of such items having increased from 6,201 in January to 13,695 in December. The machinery of the New York Clearing House has facilitated the collection of these items in certain parts of the city, and plans are under consideration which will enable the bank to collect more satisfactorily in other parts of the city. The volume of noncash items, payable in New York City, to be collected by presentation, has been greatly reduced by the action of the New York Clearing House on August 1, which permitted bankers' acceptances and notes to be cleared on the morning of the maturity date. The two rules of the New York Clearing House above referred to, effective August 1 and October 1, respectively, had the effect of reducing substantially the " float" carried by the banks and trust companies, as well as t h a t which the Federal Reserve Bank had been compelled to carry. The action of the New York Clearing House on August 12, further reducing the charges which its members are required to impose for the collection of out-of-town checks for their customers, is evidence t h a t the commercial and industrial interests of the country are receiving the benefit of the par collection system. Charges on most items which were receivable formerly at a charge of one-tenth of 1 per cent are now discretionary, and on items formerly subject to a charge of one-fourth of 1 per cent the present charges vary from one-fortieth to one-eighth of 1 per cent. GOLD SETTLEMENT FUND. Transactions through the gold settlement fund have naturally grown in volume as Government fiscal operations increased and general business expanded. Banks in other Federal Reserve districts have continued to make their payments on account of deposits DISTRICT NO. 2 333 NEW YORK. arising from subscriptions to certificates of indebtedness and Liberty loan bonds to a very large extent by drawing upon their New York correspondents, thus temporarily drawing funds away from New York. On the other hand, the Treasury has transferred enormous amounts to this bank, which, together with the natural return of funds for redeposit, has substantially balanced the outward flow just mentioned. Payments by this bank to other Federal Reserve Banks through the gold settlement fund amounted to $16,438,319,755.03 during 1918, as compared with $8,692,024,000 during 1917, and payments received from other reserve banks totaled $16,499,256,210.79, as compared with $8,426,893,000 the previous year, a net gain by this bank during the year of $60,936,455.76. Instead of weekly settlements, which had previously sufficed, daily settlements were inaugurated July 1, 1918, and these have practically eliminated interim telegraphic settlements through the gold settlement fund except transfers made for Government account. A summary of gold settlement fund operations is given in the appendix (Schedule 17). The importance of this fund, not only for the immense transfers which Government operations have necessitated, b u t for the daily settlement at par of all interdistrict balances, can not be overemphasized. THE TELEGRAPHIC TRANSFER SYSTEM. Telegraphic transfers of available funds have been made for member banks without limit as to amount, and no charge whatever has been made for the service since the installation of private telegraph wires connecting the Federal Reserve Board, the Treasury Department, and every head office and branch of a Federal Reserve Bank. The volume of these transfers has been as follows: Daily average. Number of trans fers. January... February. March April May June July August September October... November December. 101 112 110 135 142 168 188 187 209 Amount. $49,137,729. 59 50,063,542.32 42,693,293.87 54,739,515.64 55,045,758.84 70,647,040.30 67,710,105.00 54,046,227.58 55,639,814.09 98,785,077.26 68,017,973.77 86,148,696.73 334 A N N U A L REPORT OF THE FEDERAL RESERVE BOARD. The transfers handled include not only transactions between banks, b u t also payments through member banks to individuals. With telegraphic facilities thus made available without charge of private wires, mail transfers have been greatly lessened. The telegraphic transfer system has greatly reduced the buying and selling of domestic exchange, since funds actually available are transferable a t par by telegraph. RELATIONS W I T H BANKS IN THE DISTRICT. RELATIONS WITH MEMBER BANKS. I n Federal Reserve District No. 2 the number of member banks during the year has increased from 667 to 723, the location and character of the members being as follows: Location. New Jersey TotaA National banks. 14 128 State banks. Trust companies. Total. 32 448 480 14 16 2 22 16 29 30 45 555 622 32 69 723 2 16 152 62 493 During the year 59 State banks and trust companies were admitted to membership, a list of these members being shown in Schedule 4. Four national institutions in the district were liquidated, all for the purpose of combining with other institutions, which either were or became members of t h e Federal Reserve Bank. Relations with member banks have been necessarily close and constant. The selling of two issues of Liberty bonds, the numerous sales of certificates of indebtedness, together with the payments by book credit, the withdrawals of these credits, the custody of securities, the correspondence, the accounting and the deliveries in connection therewith, all have served to bring the Federal Reserve B a n k into intimate touch with every banking institution in the district, member and nonmember alike. I n all of these dealings for account of the Treasury Department there has been no distinction whatever between member banks and nonmember banks; all have been on exactly the same footing. While the Federal Reserve Bank could not discount directly for nonmember banks, it has freely purchased from them whenever necessary, at the same rate a t which it was discounting for its member banks, certificates of indebtedness with an agreement on their part to repurchase within 15 days, and under authority of the Federal Reserve Board has offered to rediscount their paper when secured by Government obligations, with the indorsement of DISTRICT KO. 2 — M W YORK. 335 a member bank. The response of the banks throughout the district to the requests of the Treasury Department for the purchase of certificates and for assistance in selling and financing Liberty loans has been almost without exception of the most generous and enthusiastic nature. The distribution of Liberty bonds effected during 1918 was more general throughout the country than during 1917. The sale of certificates in other districts was markedly better, as the Second Federal Reserve District was called upon during 1918 to take only 38 per cent of the certificates issued, whereas in 1917 it absorbed 64 per cent of the total issued, and the burden on the banks of this district, especially on those in New York City, has been lightened proportionately. There has been no diminution in the patriotic readiness of the banks in New York City during 1918 as during 1917 to do everything in their power to assist the financing of the war. Member banks in New York City and certain other cities have also cooperated with the Federal Reserve Board by sending to this bank weekly reports of condition and of checks paid by them, to form part of the statistics published by the board each week upon banking conditions and transactions. The banking facilities of the Federal Reserve Bank were used very freely by member banks during 1918. More banks rediscounted, used the collection system, transferred funds by wire, and relied on this bank for supplies of currency than ever before. In order to equalize the service given to all member banks and to give all banks in the district facilities as nearly as possible equal to those enjoyed by banks in the same city with the Federal Reserve Bank, this bank on October 8, under authorization from the Federal Reserve Board, paid the cost of shipping currency to and from member banks and undertook to pay charges on all telegrams received from or sent to member banks in connection with currency, exchange transfers, and deposit transactions. There are still many member banks, however, who have never used any of the facilities of this bank and do not appear to understand the advantages of so doing. FIDUCIARY POWERS FOR NATIONAL BANKS. Following the amendment to the Federal Reserve Act, enacted September 26, a considerable number of national banks in this district filed applications for authority to exercise fiduciary powers. The number of applications received to the end of the year was 54, of which 34 were approved, 1 disapproved, and 19 were pending. The list of banks which have been granted authority during 1918 to exercise fiduciary powers will be found in the appendix (Schedule 18). 336 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. CHANGES IN RESERVE REQUIREMENTS. Under the provisions of the amendment of September 26 to section 19 of the Federal Reserve Act, the Federal Reserve Board in October reduced the reserves of member banks in the boroughs of Brooklyn and Bronx to 10 per cent of demand and 3 per cent of time deposits; and the reserves of member banks in the boroughs of Richmond and Queens to 7 per cent of demand and 3 per cent of time deposits; b u t an institution having branches in a more populous borough is obliged to carry the reserves required for institutions in such borough. RESERVE PENALTIES. Throughout the year, under regulations of the Federal Reserve Board, member banks which have failed properly to maintain their reserve deposits with this bank have been required to pay a penalty upon the amount of the deficiency. The penalty rate, fixed by the Federal Reserve Board at 2 per cent in excess of the 90-day discount rate has been as follows: January, 6 per cent; February to April, inclusive, 6J per cent; May to November, inclusive, 6 | per cent. The amount collected was $27,191.89, as compared with $18,585.29 during 1917, and the average number of banks penalized each month has been 21, as compared with 12 during the preceding year. The increase in the number of banks penalized is due to the increased number of members, to mail and clerical difficulties, and to the general preoccupation of the banks with Government work. The Federal Reserve Bank has recently adopted the practice of sending a representative to visit banks which do not appear to understand completely the requirement for the maintenance of reserves, and it is expected t h a t this will result in smaller deficiencies in the future. RELATIONS WITH NONMEMBER BANKS. As the war progressed and its financial burdens increased, with a corresponding decline in the reserve percentage of the Federal Reserve system, the officers of the Federal Reserve Bank felt it their d u t y to call to the attention of the nonmember banks the importance of their contributing their strength to the system which was compelled to furnish the entire amount of additional credit required to carry on the war. Accordingly, during the spring and summer a series of conferences were held at the Federal Reserve Bank, attended in all by officers of 134 out-of-town nonmember institutions, at which t h e operations of the Federal Reserve Bank were explained and t h e needs of the Government emphasized. These conferences permitted t h e establishment of personal relations with the officers of the banks in attendance,, and resulted in a considerable number of applications for membership. DISTRICT :N0. 2 N E W YORK. 337 The State institutions which became members of this bank during 1918 are given in Schedule 4. At the close of the year, the Federal Reserve Bank of New York had 101 State bank -and trust company members, with total resources of $3,488,611,000; or 28.4 per cent in number and over 75 per cent in resources of the eligible State banks and trust companies in the district. Figures which have recently been published in the Federal Reserve Bulletin indicate t h a t with regard to the percentage of both the number and the total resources of its eligible State institutions now included within its membership, the New York Reserve District leads all the other districts. As already indicated, the fiscal agency functions of the Federal Reserve Bank have brought it into relationship with all nonmember banks, and their readiness to cooperate in assisting Government financing has been in continuous evidence throughout the year. The cordial relations which have hitherto prevailed have continued throughout the year with the chiefs of the banking departments of the States within the district, who have given many evidences of their desire to assist in the development of the system and to recommend legislation for the purpose when necessary. RELATIONS WITH NEW YORK CLEARING HOUSE ASSOCIATION. I n respect to both measures which would assist Government financing and measures which would make for progress in banking conditions, the relationship of the New York Clearing House Association with the Federal Reserve Bank has continued to be of a most cooperative nature. During the early months of the year, it became evident t h a t the increasing pressure for credit was leading in some directions toward competitive bidding for deposits which might become injurious to Government financing and to the general banking situation. The New York Clearing House Association invited the Governor of the Federal Reserve Board to address its members upon the subject, and after considerable study, it adopted, effective October 1, the following schedule of maximum rates which members of the clearing house might pay upon deposits, which were also concurred in by the important institutions not members of the clearing house: (a) On deposits of all banks, trust companies, and private bankers (except mutual savings banks in this district), a rate not in excess of one-half of the 90-day rate of the Federal Reserve Bank of New York; (b) On other demand deposits, not in excess of 3 per cent; (c) On time deposits, not in excess of 3 J per cent. 100823°—19 22 338 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Similar action was subsequently taken by a number of other important clearing house associations throughout the country, resulting in the curbing of practices undesirable at any time, and peculiarly unsettling under war conditions. During the summer the Federal Reserve Bank discussed with the New York Clearing House Association the desirability of the payment of bankers' acceptances in cash on the day of maturity instead of by check collectible through the clearing house on the following day. After due consideration the association adopted a ruling, effective August 1, permitting members to clear on the morning of the maturity date not only bankers' acceptances, b u t notes payable at clearing banks. This action saved an immense amount of labor heretofore expended in obtaining checks for accepted drafts and certifications of notes, and eliminated from banking statements a considerable volume of one day " float." On August 12 the New York Clearing House Association reduced substantially the exchange charges which its rules compelled its members to impose for collecting out-of-town checks, and on October 1 made effective a rule in substance limiting in accordance with the time schedule of the Federal Reserve collection system the maximum compensation its members might pay out-of-town banks for collecting checks on banks on the Federal Reserve par list. The effect of these rules has already been commented upon on pages 330-332. On November 15, by agreement between the Federal Reserve Bank and the New York Clearing House, the latter abandoned its out-of-town collection department and the former its collection by messenger of items on bankers and firms, not members of the association, who were willing to settle daily for items drawn upon them, through machinery established by the association. This eliminated duplication of services by the two institutions and tended toward consolidation of effort in spheres for which each of the two institutions was respectively especially equipped. Throughout the year there have been a number of joint meetings between the clearing house committee and the executive committee of this bank, and at several other meetings of the clearing house committee the governor or a deputy governor of this bank has been present by invitation. RELATIONS WITH FOREIGN BANKS AND THE PROGRESS OF FOREIGN BANKING. With the prospect during 1919 of a return to more natural and normal conditions in international commerce and exchange, it seems appropriate to outline briefly (a) the arrangements which the Federal Reserve Bank of New York has entered into with foreign banks or DISTRICT NO. 2 — N E W YORK. 339 Governments; and (b) the progress which America has made, since the beginning of the European War, in the establishment of international banking relations. The following relationships, with the approval of the Federal Reserve Board, have been concluded between the Federal Reserve Bank of New York and foreign banks or Governments: Bank of England.—This is an arrangement of a formal character, covered by written agreement, ratified by the directors of the two institutions, covering in detail the basis of the principal operations and making a close, effective, and complete agency. The business thus far transacted has been very limited, but-under the agreement can be extended whenever the need arises. I n June, 1917, the Federal Reserve Bank of New York, acting for itself and other Federal Reserve Banks, paid for account of certain English banks a loan of $52,500,000 with interest, maturing in New York, and accepted in return earmarked sovereigns of equivalent value in the Bank of England. During 1918 all b u t a small amount of this gold was either shipped to New York or furnished to the Treasury Department for the use of the United States Government or its allies in Europe. Bank of France.—A somewhat limited agreement has been effected with the Bank of France which it is hoped and expected by both institutions will soon ripen into a closer relationship. Bank of Italy.—A mutual arrangement has been entered into between this institution and the Federal Reserve Bank of New York, whereby each has appointed the other its correspondent. No business has been or is likely to be transacted between the two institutions as long as arrangements for dealing with exchange problems growing out of the war are dealt with by the Governments of the two nations. Bank of Japan.—Mutual arrangements, similar to those established with the Bank of Italy, have been concluded with the Bank of Japan, and although no active business has yet been transacted, it is hoped that, as in the case of other foreign agents and correspondents, a more active relationship will develop when international commerce resumes its natural course. Philippine National Bank.—In May, 1917, mutual agency appointments were effected between the Philippine National Bank and this bank, b u t as the former has an active branch of its own in New York, the relationship, while ready for operations at any time, is likely to be largely of an emergency character. De Nederlandsche Bank.—During 1918, at the request of the Treasury Department, this bank opened a current account with de Nederlandsche Bank for the purpose of receiving therein, for the use of the Treasury Department, the proceeds in guilders of wheat and other commodities. 340 ANNUAL REPORT OF 1HE FEDERAL RESERVE BOARD. Sveriges Rikslank and Norges Bank.—During 1918 accounts were also opened with the Sveriges Riksbank of Stockholm and the Norges -Bank of Christiania for purposes analogous to those mentioned in the foregoing paragraph. Argentina.—Early in 1918 an important arrangement was entered into between the United States and the Argentine Governments whereby the Federal Reserve Bank of New York and the Banco de la Nacion appointed each other as correspondents, and the former undertook to receive deposits not exceeding $100,000,000 exportable in gold coin after the proclamation of peace and the deposit of over $16,000,000 of gold-coin then on deposit, earmarked, in New York and since then withdrawn and exported. The purpose of this agreement, which has proved successful in operation, was to stabilize the badly demoralized exchange situation between the two countries. Bolivia.—A somewhat similar agreement has been entered into between the Governments of the United States and of Bolivia whereby this bank agrees to receive not exceeding $5,000,000 on deposit which may be exported in gold six months after the proclamation of peace. Peru.—Another similar agreement for the stabilization of exchange has been entered into between the Governments of the United States and of Peru with this bank as banker, and with a maximum of $15,000,000 to be received on deposit subject to export at the termination of the present embargo. The agreement is not yet in actual operation pending the conclusion of certain minor details. Indian Government.—A very comprehensive arrangement has been made between the United States and the British Government whereby the latter supplies the Federal Reserve Bank of New York, acting for all Federal Reserve Banks, with sufficient rupee exchange each month to enable importers in the United States to pay for necessary imports from India. Up to December 31 the Federal Reserve Bank of New York had received credits aggregating Rs. 192,500,000, of which Rs. 187,476,132 have been sold and transferred, with a most satisfactory result in the stabilization of exchange between the United States and the East. Prior to the passage of the Federal Reserve Act, national banks were not permitted to establish branches or agencies abroad, although some of the State institutions had enjoyed this privilege. During the past four years some of the State institutions have extended their foreign branches. The National City Bank of New York with its affiliated institution, the International Banking Corporation, has established many branches abroad, and two banking corporations organized in the United States to carry on banking in foreign countries have established a large number of branches and relations, particularly with Latin-American countries. I t is probable t h a t further along these lines will occur during the coming year. Digitized fordevelopment FRASER DISTRICT ]STO. 2 — N E W YORK. 341 A list of these institutions with their foreign branches and affiliations is given in Schedule 5, those marked with a footnote reference being branches which were established prior to the outbreak of the European War. I t has been estimated t h a t in July, 1914, not less than 150 foreign banking institutions maintained branches or agencies in London in addition to the home offices of many British banks doing business in all parts of the world. The closest kind of banking contact was thus maintained between London and foreign countries, and conduits were established through which money flowed into and out of London in accordance with the movements of trade and the relation of London rates to those prevailing in other centers. The number of such branches and agencies of foreign banks in New York and other American cities has increased considerably during the European War, b u t the limited nature of the business which the law of New York State permits branches or agencies of foreign institutions to transact, undoubtedly acts as a deterrent to the progress of the movement. A branch of a foreign bank may receive no deposits in New York State, and several foreign institutions, in order to obtain broader banking privileges than the New York law would permit their branches to exercise have acquired substantial ownership or control of American institutions conducting business in New York City. Among these may be mentioned the Royal Bank of Canada with its interest in the Merchants National Bank of New York; the Banca Commerciale Italiana of Milan with a branch of its own in New York and control of the Lincoln Trust Company of New York, and The Banco di Sconto del Circondario, owning jointly with the Guaranty Trust Company the Italian Discount & Trust Company of New York. A list of the foreign banking institutions having branches or agencies in New York and other American cities at the close of 1918 is given in Schedule 6, those established before the outbreak of the European War being indicated by a footnote. Many of these banks are large lenders of money and purchasers of bills in the United States. Many others are large buyers of bills drawn in foreign countries on American banks, the market for which in such countries is doubtless much facilitated by the existence of branches of local institutions in the United States through which such bills can be readily negotiated. While it may be said that the establishment of such branches or agencies of foreign banks in the United States constitutes competition of a certain kind with American banks, nevertheless the undoubted widening of banking contact between the United States and foreign countries which they bring, and the beneficial effect of such contact upon the development of dollar exchange and of our discount market, would seem to justify 342 ANNUAL, REPORT OF T H E FEDERAL RESERVE BOARD. a reconsideration of the situation from a broad point of view and possibly some liberalization of the operations which such institutions may conduct in New York State. REGISTRATION OF DEALERS IN FOREIGN EXCHANGE. Under the operation of the Executive order of the President, dated J a n u a r y 26, 1918, all dealers in foreign exchange, including bankers, brokers, and exporters and importers who carry accounts in foreign countries or carry accounts in the United States for foreign correspondents, are required to register with the Division of Foreign Exchange of the Federal Reserve Board through the Federal Reserve Banks of their respective districts. Two thousand six hundred and sixteen such dealers registered through this bank. These dealers were required to apply through this bank for permission to carry out a number of classes of operations and to file weekly or monthly reports with this bank covering their foreign business. Passing upon these applications and recording these reports has required a large amount of consideration and work. ORGANIZATION OF THE B A N K . INTERNAL MANAGEMENT. The problems of management and operation of the Federal Reserve Bank have become increasingly complex and difficult during the past year by reason of the many and important problems arising in connection with war finance. The directors have given close attention and study to these problems, meeting 53 times during the year. The executive committee, consisting of the governor or deputy governor, the chairman and four directors (all the directors .serving in turn), held 246 meetings, and other committees held 57 meetings. The directors, at their first meeting held in 1918, reelected the officers of the bank for the ensuing year. With the increased activities of the bank, many additions to and promotions in the staff, both official and clerical, have become necessary. The following officers have been appointed during the year: Officer. L. F . Sailer J.F.Curtis D . H. Barrows.. L . H. Hendricks. E . R. Kernel L . R. R o u n d s . . . I . W. W a t e r s . . . . J. E . Raaseh J. Emison G. M. Hay ward. W . G. Simpson.. Elected. Deputy governor (in addition to cashier). Deputy governor (in addition to secretary* and counsel). Assistant secretary Cashier Manager of investments Assistant cashier Assistant cashier Assistant cashier Assistant auditor Assistant auditor Assistant auditor 1 Formerly- Date. Jan. 3 Cashier. Jan. 23 Secretary and counsel. Feb. 6 June 26 June 26 June 26 June 26 June 26 Sept. 12 Sept. 12 Sept. 12 With Farmers Loan & Trust Co. Assistant cashier. Assistant cashier. Acting assistant cashier. Chief clerk. Manager of partial payment division. Head of division, auditing department. Head of division, auditing department. Head of division, auditing department. Resigned as secretary to take effect Dec. 31,1918. DISTRICT NO. 2—NEW YORK. 343 On December 31, 1917, the bank, including the fiscal agency departments, had 16 officers and 829 clerks, 351 of the clerks being women; at the end of 1918 the staff consisted of 23 officers and 2,630 clerks, and 1,495 of the clerks were women. To maintain the efficiency of its organization as a necessary war instrumentality of the Government the directors of the bank took the steps contemplated under the regulations of the selective service act to have deferred classification on industrial grounds granted those of its emplo}^ees whose services were regarded as essential to the adequate and effective operation of the bank. A list of the departments of the bank and the number of employees, in each is given in Schedule 7. The employees have responded effectively and in fine spirit to the extraordinary demands upon their time and energy during the year. I n spite of heavy tasks, inadequate, crowded, and scattered quarters, and the large number of inexperienced clerks, the work of the bank has been kept up, and in the departments handling Liberty-bond work the apparently impossible has often been accomplished. Owing to the very long hours imposed upon many departments, the earlier practice of allowing supper money to employees working into the evening was discontinued in February, and a fixed allowance for overtime substituted. Living costs having continued to increase because of war conditions, the directors at the end of June and at the close of the year, with the approval of the Federal Reserve Board, supplemented the normal compensation of employees by additional payments as follows: Period January 1 to June 30: 15 per cent on salaries up to and including $1,500; 10 per cent on salaries of more than $1,500, up to and including $5,000. Period July 1 to December 3 1 : 25 per cent on salaries up to and including $1,500; 20 per cent on salaries of more than $1,500 and up to and including $3,000; 15 per cent on salaries of more than $3,000 up to and including $5,000. To keep pace with the growth of the bank and to meet changing conditions, several new departments have been organized and existing departments subdivided, as will be noted from the foregoing list. The growing work of the transit department has already been described, and the activities of the discount and other departments may be inferred from the figures which have been given to show the volume of the bank's business. The money department, which handles all currency received on deposit, now has 74 regular employees, of whom 39 are women, and in addition receives assistance from some 60 other employees from this and other banks when overtime work is necessary. Federal Reserve notes handled in this department during the year and paid out again as fit for use have amounted to about $423,816,000, while 344 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. unfit notes shipped to Washington for cancellation were 23,164,000 in number and $204,160,000 in amount. The activity of the money-shipping department during the year may also be taken as a fair indication of the enormous increase in the volume of transactions of purely banking character. I n the month of January, 1918, the department handled 1,760 shipments, which included currency shipments amounting to $13,091,655, security shipments amounting to $22,342,499, and notes shipped to Washington for cancellation amounting to $11,420,000. I n December the number of shipments was 5,227, which included currency shipments amounting to $34,391,694, security shipments amounting to $41,576,948, and notes shipped to Washington for cancellation amounting to $19,260,000. The Federal Reserve agent's department has been enlarged to include a Federal Reserve examiner, whose duties will include the custody of examination reports and reports of condition of all member banks; investigation and recommendation in connection with applications of national banks for permission to exercise fiduciary powers, or of member banks to accept drafts and bills of exchange up to 100 per cent of capital and surplus; investigation of reports and data submitted with applications made by State banks for membership; examinations, in cooperation with State authorities, of State member banks or banks applying for membership; and special credit investigations of either national or State member banks. An assistant has also been employed to develop work of statistical character in the bank, and to report on business and economic conditions. The duties of the auditing department have been increased, both in importance and extent, by the rapid expansion of the bank's activities. The number of employees in the department has increased from 29 to 106, though some portion of this increase is no doubt temporary, having been necessary to bring up to date work which had fallen behind during the influenza epidemic in October. The custgdy department was inaugurated at the close of 1917 to take custody of all securities held for the securities department, including the securities of this bank and those held for other Federal Reserve Banks, for member banks, for the Government deposit department, for the bond issue division, and for the third and fourth Liberty loan partial payment associations of New York City banks and trust companies. The department also has custody of the collateral to loans and discounts held by the bank's discount department. The securities received by the department during the year totaled about $28,000,000,000, deliveries about $26,000,000,000, and the balance held December 31, almost $2,000,000,000. DISTRICT NO. 2 — N E W YORK. 345 A department has been organized to control all purchases of supplies and the payment of all bills and salaries, and to make reports upon and analyze all expenses for the directors and officers of the bank and the Federal Reserve Board. By the organization of this department substantial economies in buying have been effected, and unnecessary expenditures avoided. A complaint and fraud department, organized in June, has handled several hundred cases of complaint or fraud, principally in connection with Liberty loan campaigns and other war-time matters. An employment department, in charge of an assistant cashier, has been created. All applicants for clerical positions are interviewed, and their qualifications and records carefully inquired into, as appointments are made entirely upon the basis of merit and no effort is spared to insure the best selections possible. About 100 applicants for positions, many of whom have called in response to advertisements inserted from time to time, have been interviewed daily. An efficiency engineer was employed by the bank during the latter part of the year to study the office methods of the larger departments of the bank, and suggest changes where needed. On March 1 a department was organized at the 50 Wall Street office to promote the welfare of the women employees of the bank. Early in September the department was moved to attractive quarters in the main office at 15 Nassau Street, and enlarged to include a welfare office and a rest room and library. A medical department was established, with a visiting woman physician, a head nurse and two assistants. A cafeteria has also been opened in which about 750 women lunch daily. Well-balanced menus of first quality food are supplied at prices based on actual cost of food plus the cost of service, without allowance for overhead charges. The checks average 24 cents and the cafeteria is proving an unqualified success. Official visitors from the welfare department call upon all absent employees, both men and women, who fail to communicate their reasons for absence from the bank, and this practice has appreciably reduced the number of absentees. The Federal Reserve Club, which was originally organized among the employees of the bank in 1914, has grown in membership and the scope of its activities. I t s objects have been the promotion of social relations, of good fellowship among the employees of the bank, and educational advancement. The membership now numbers 1,400, including many of the women employees of the bank. The first issue of a monthly magazine, to be called " Federal Reserve Club Magazine," will appear early in January, 1919. 346 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. BANK PREMISES. The great expansion of the staff during 1918 has made necessary the occupation of additional space. The bank, including the Liberty loan organization, has occupied not only its office on the ground floor, portions of the third, fourth, fifth, eleventh, twentythird, and thirty-first floors, and the entire twenty-fourth and twenty-fifth floors of the Equitable Building, b u t the entire building at 50 Wall Street, six floors at 37 Liberty Street) and space a t 39 and 41 Liberty Street and 19 West Forty-fourth Street, amounting altogether to 203,258 square feet, as compared with 65,000 at t h e close of 1917 and 21,625 at the close of 1916. The most unsatisfactory working conditions under which the bank has been operated led the directors of the bank in May, with the approval of the Federal Reserve Board, to purchase a plot of land extending from Liberty Street to Maiden Lane and running eastward from Nassau Street, covering 33,509 square feet, at a cost of $3,121,492.39, upon which the bank will erect its own building in due time. On September 3 a consulting architect was engaged to study the special requirements of the various departments of the bank, in order to obtain data for the preparation of a basis for a competition among architects when the bank is ready to ask for plans for a building. This preliminary work is expected to require almost a year of study. ELECTION OF DIRECTORS. The amendment to section 4 of the Federal Reserve Act, approved September 26, 1918, provided t h a t for the purpose of the election of directors the Federal Reserve Board should classify the member banks of the district into three groups, each group to consist as nearly as m a y be of banks of similar capitalization, the earlier requirement t h a t the groups should be of approximately equal numbers having been eliminated. The Federal Reserve Board classified the banks of this district as follows: Group 1, banks having capital and surplus in excess of $1,999,000; group 2, banks having capital and surplus not exceeding $1,999,000 and not below $201,000; group 3, banks having capital and surplus below $201,000. The result of this classification was to place in group 1, which will elect directors at the end of 1919, 55 banks, of which all b u t 5 are in New York City or adjacent territory. Group 2, which will elect directors at the end of 1920, includes 180 banks located in the larger and medium-sized cities of the district, and group 3, which participated in the 1918 election, includes 479 banks located for the most part in the smaller towns and villages. DISTRICT NO. 2 — M W YORK. 347 To fill the vacancies caused by the expiration on December 3 1 , 1918, of the terms of Franklin I). Locke and Leslie R. Palmer, as directors of class A and class B, respectively, an election was held from November 19 to December 10. Of the 479 banks in the group which were entitled to vote this year 337, or 70 per cent, voted, a much higher percentage than in any previous election. The following candidates were nominated: For class A director: William S. Gavitt, of Lyons, N. Y.; Robert J. Gross, of Dunkirk, N. Y.; Charles Smith, of Oneonta, N. Y. For class B director: George Alfred Cluett, Troy, N. Y.; Manton B . Metcalf, of Orange, N. J.; Leslie R. Palmer, of Croton-on-Hudson^ N. Y. At the closing of the polls it appeared that the following votes had been cast in the column of first choice: For class A director: William S. Gavitt, 109; Robert J. Gross, 2 1 ; Charles Smith, 197. For class B director: George Alfred Cluett, 65; Manton B . Metcalf, 7 1 ; Leslie R. Palmer, 195. Mr. Smith was declared elected class A director and Mr. Palmer class B director, each for a term of three years, beginning January 1, 1919. George Foster Peabody, class C director, whose term expired December 31, 1918, has been reappointed by the Federal Reserve Board for a three-year term ending December 31, 1921, and designated deputy chairman of the board for 1919. On December 11 the Federal Reserve Board designated. Pierre J a y as chairman of the board and Federal Reserve agent for 1919. MEMBER OF ADVISORY COUNCIL. On J a n u a r y 9 the directors reelected J. P . Morgan, of New York City, a member of the Federal Advisory Council from Federal Reserve District No. 2 for the year 1918. FISCAL AGENCY OPERATIONS. The major financial undertaking of the war was the floating of Liberty loans. The problem was not limited to selling bonds; it involved the creation of a new public state of mind toward investments. The Federal Reserve Banks of the country were the chief agencies through which the Secretary of the Treasury operated in meeting this problem. To them at all times and in all circumstances the Treasury Department gave the fullest support within its power, thereby lightening materially the burden of their obligations. They were the administrative centers for the work of numberless local Liberty loan committees, which, under the leadership of the director of war loan organization in Washington, formed the greatest bond selling organization ever created. To the Second Federal Reserve District fell the necessity of 348 A N N U A L KEPORT OF THE FEDERAL RESERVE BOARD. absorbing nearly a third of all the bonds and nearly one-half of all the certificates of indebtedness issued by the Treasury. I n the 19 months of our participation in the war the banks and organizations working with the Federal Reserve Bank of New York sold $4,942,374,000 of Liberty bonds, and u p to December 31, 1918, certificates of indebtedness amounting to $6,512,835,500. On the Federal Reserve Banks, also, rested the responsibility of so administering the financing of the loans that the expansion of credits should be no greater than necessary to insure successful flotation and t h a t the money markets of the country should not suffer dislocation. These problems have been met with measurable success. I n the main the Liberty loans have been sold to investors, thus sparing bank funds for commercial and other Government necessities. CERTIFICATES OF INDEBTEDNESS. The sale of certificates of indebtedness in anticipation of the Liberty loans provided the Treasury with funds to meet the current requirements of the war. The Liberty loans converted these short credits into long-time credits and spread them among individual investors. I n the 12 months of 1918 the Federal Reserve Bank of New York sold a total of $4,091,260,000 of these certificates of indebtedness. This total includes .both the issues made in anticipation of Liberty loans and the issues of tax certificates. On February 8, in anticipation of the third loan, the Secretary of the Treasury notified the banks t h a t its requirements probably would be $3,000,000,000, and therefore requested every bank and trust company to set aside each week 1 per cent of its total resources for investment in certificates. The plan, as he then outlined it, was to continue for 10 weeks. On June 12, in anticipation of the fourth loan, the weekly quota was fixed at 1J per cent of the total resources of each bank and trust company. The anticipated requirements were $6,000,000,000. The same rate of subscription was requested during the month of December in anticipation of the fifth loan. The record of subscriptions in the Second Federal Reserve District during 1918 is given in Schedule 8. The largest volume of these loan certificates outstanding at any one time in this district in the third Liberty loan financing period was $835,938,000. I n the fourth Liberty loan financing period t h e corresponding figure was $1,680,989,000. The banks of the district gave the heartiest response to the call of the Secretary of the Treasury. Of the 1,234 banks, all b u t 45 subscribed to the issues. The list of subscribers included even a great majority of the savings banks. Further, the sales were far more DISTRICT NO. 2 349 N E W YORK. general throughout the district and the country than in 1917, when the New York City banks subscribed far in excess of their quota. The satisfactory change to a wider distribution of the fourth loan certificates was the result of intensive work by a newly developed sales organization established along county lines, with a county director as supervisor of sales in his neighborhood. The county directors, each of whom was a representative banker in his own community, met in New York and received the details of the plan from the deputy governor of the bank and the director of sales. Similar meetings were held in the local communities at the call of the county directors, who prosecuted their work with the greatest energy, and in many cases organized county bankers' associations. I n addition to discussing with the banks the Government's necessities, and the fairness of the plan by which its temporary credit should be supplied by the banks ratably in proportion to their resources, the organization explained to the bankers the method of paying by book credit and of obtaining advances from the Federal Reserve Bank, which many of them had not understood. Stated in tabulated form, the subscriptions allotted to the various classes of banks were as follows: Class of b a n k . National State Trust companies Savings I n d i v i d u a l s a n d firms Total Number Number i n second subscribing. district. Allotment. P e r c e n t of t o t a l allotment. 625 229 202 178 616 225 195 153 $2,429,518,000 272,319,500 1,222,246,500 40,529,000 126,647,000 59 4 6 6 29 9 1.0 3 1 1,234 1,189 4,091,260,000 100.0 The amounts shown as purchased by individuals and firms are very largely tax certificates purchased in anticipation of the payment of income taxes. The banks outside New York City subscribed to fourth loan certificates 108 per cent of their total quota, as against 53 per cent to third loan certificates; the New York City banks subscribed 139 per cent of their quota to fourth loan certificates as against 129 per cent to third loan certificates, despite the fact t h a t the quotas assigned were materially increased. Although advances against certificates purchased by both member and nonmember banks were made, the volume which the Federal Reserve Bank was called upon to carry was comparatively moderate. On October 23, for example, when the certificates preceding the fourth loan were at their maximum $1,681,000,000, the amount carried by the Federal Reserve Bank was $424,000,000, or about 26 per cent of the total. 350 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. THE LIBERTY LOANS. The record of sales of Liberty bonds in the Second Federal Reserve District shows, in common with other districts, t h a t quotas assigned have been generally exceeded. I n the report of the Federal Reserve Bank of New York for last year it was shown t h a t the subscriptions received far exceeded the informal apportionments made b y the Treasury Department, and were also in excess of the amounts ultimately allotted. Subscriptions made in 1918 were accepted in full. The comparative statement showing the results of all loans reflects a remarkable increase in amounts, as well as in the number of individual subscribers. The second district's total sales in the fourth loan were greater than the entire sum accepted b y the Treasury from all districts in the first loan. Further, and of greater importance to the financial position of the country is the fact t h a t the subscribers to the third loan were 50 per cent more numerous t h a n in the second. B y this fact it is possible to measure the success with which the third loan, as compared with previous loans, was sold to individual investors. The more widely extended sale is also indicated in the reduction of the size of the average subscription of $1,212.29 in the first loan to $366.47 in the third, a figure which, however, was increased in the fourth loan, when the quotas for the country and district were twice as great. The record of the Second Federal Reserve District is as follows: Quota. First loan.. Second loan Third loan. Fourth loan. $600,000,000 900,000,000 900,000,000 1,800,000,000 Amount subscribed. Amount allotted. $1,186,788,400 1,550,453,450 1,115,243,650 2,044.901,750 $617,831,650 1,164,366,950 1,115,243,650 2,044,901,750 Number of subscribers. 978,959 2,182,017 3,043,123 3,604,101 Average subscription. $1,212.29 710. 55 366. 47 567.39 Amount per capita. $94.67 123. 69 Hardly less significant than the great growth of the individual subscriptions from loan to loan is the increase in the number of large subscriptions in the fourth Liberty loan as compared with the third. The number of subscriptions in excess of $10,000 more than doubled, and the number of subscribers in amounts exceeding $200,000 increased from 430 to 967. P a r t of this great increase is attributable to the willingness of the banks to extend generous credits to subscribers. The "borrow and b u y " campaign, adopted from necessity, was very productive of large subscriptions. The terms made by New York banks allowed the investor to borrow at 4 | per cent for 90 d a y s ; thereafter the banks made varying agreements with subscribers, some to carry on successive renewals for a year at the coupon r a t e ; others a t onehalf of 1 per cent above the Federal Reserve Bank rate. The figures DISTRICT NO. 2 — N E W YORK. 351 for the third and fourth loans are given in Schedule 9 for purposes of comparison. The work of the banks of the district in the loan campaigns was most enthusiastic. The tabulation of results shows a very even ratio of subscriptions received through the several classes of banks in the two loans. I n Schedule 10 are stated in tabulated form the subscriptions, classified accordingly to the kind of bank through which they were made. The record made by the different geographic subdivisions of the district is given in Schedule 11. I t should be understood in considering the figures for the city of New York, t h a t m a n y persons living in other parts of New York have subscribed in Manhattan and have paid for their subscriptions with funds drawn from Manhattan banks; hence the low apparent per capita subscriptions in certain of the other boroughs. Further, the per capita for Manh a t t a n is materially increased because of the immense corporation subscriptions placed with Manhattan banks. FIXED ORGANIZATION ESTABLISHED. The progression of the Liberty loans forced this bank to modify radically its plan of administration. In the first loan, so rapid were the steps from the announcement to the close of the sale t h a t the Federal Reserve Bank of New York depended almost exclusively upon volunteers whom bond houses, banks, and corporations could spare for the emergency. This plan of organization applied not only to the selling force but to that division of the bank which received subscriptions and made deliveries of bonds. I t became apparent very soon that a closer organization was necessary, and the bond-issue division was created accordingly, with its staff of fixed employees. During the second Liberty loan the principal responsibility for selling bonds in this district again rested upon volunteers, who served with unabated industry during the period of the campaign and for some time before it. But with the mapping out of plans for the third loan, it was seen t h a t there was little or no interval between the close of one loan and the preparation for the next. Conditions were changing. In the earlier loans the patriotism of the country carried the campaign through successfully. But with the diminution of surpluses and the necessity of striking deeper, of enlisting the support of every American, a more intensive campaign was requisite, and for it a more closely knit organization. A fixed establishment of paid employees was therefore built up, which enlarges and contracts as the demands of the campaign prescribe. At the close of 1918 the paid personnel of the Liberty loan organization in this district numbered 1,210 persons, including the employees 352 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. in the fiscal-agency departments of the bank working on the Liberty loan and certificates of indebtedness activities. A great many volunteers nevertheless remain, but save for a few executives permanently associated with the central organization, they are engaged in the work of the loan only during the campaign and the period just before it. Among them are not only those who act as chief advisers in framing and carrying out the policies of the campaign b u t a great number of chairmen and members of Liberty loan committees, who have the hard task of carrying to a successful finish the loan campaigns in the local communities. In the early loans local committees assumed many of the expenses of their work, but because of the succession of campaigns and the recognition of Liberty loan activities as a continuous operation of the Government, these expenses have become more and more a charge upon the Treasury. Further, because of the very fact t h a t Liberty loan campaigns by their repetition have ceased to be novelties, it has been necessary to carry on at once a more extensive and a more intensive canvass. The results have been apparent in the vastly increased volume of individual subscriptions and also in the amount of bonds sold. But the expenses, especially as between the second and third loans, have increased materially. To administer the disbursement of funds in more systematic fashion, the comptroller's department early in 1918 became a part of the continuing organization. I t purchases all equipment and supplies, pays all salaries, reimburses local committees for their expenses, maintains all accounts and is the custodian for the committee's property. I t s disbursements in 1918, including the costs of the fiscal agency divisions of the bank, amounted to about $4,250,000, all of which it paid with Federal Reserve Bank funds. These expenditures in turn are revouchered to the Treasury Department, by which the bank is repaid. A closely segregated budget for the regular organization and separate budgets for the campaign activities have been framed. Through a system of weekly reports of liabilities registered the comptroller is advised at all times whether the various branches of the organization are living within their appropriations. The Federal Reserve Bank of New York wishes here to record and acknowledge the services rendered to the Government b y all those who labored for the success of Government financing in its fixed and its volunteer organizations. Regardless of their own convenience, interests and health, they worked for the successful performance of whatever tasks were assigned to them with the utmost devotion and patriotism. DISTRICT NO. 2—NEW YORK. 353 THE CENTRAL LIBERTY LOAN COMMITTEE. The central Liberty loan committee in this district is the dynamic center of the whole organization. I t was established at the opening of the first Liberty loan campaign, was enlarged prior to the second, and is now composed of 15 bankers, with the governor of the Federal Reserve Bank of New York as chairman. I t s membership includes the responsible heads of many of the largest banks and banking houses in New York. The committee meets frequently during the progress of the loans and at such other times as business of importance develops. I t is far more than an advisory committee; it is the body which determines the policies to be followed in selling the loan, the nature of the appeal to be made to the buyers, and the financial measures of an extraordinary nature to be taken for insuring the success of the loan. The attitude of these bankers has at all times been of the most patriotic nature and their services have been of inestimable value to the success of the Government's financial programme. THE SALES ORGANIZATION. Immediately in charge of sales is the distribution organization, of which a member of the central Liberty loan committee has been chairman. I t s members are bankers or partners in bond houses. Eight of their number act as chairmen, respectively, of the eight subdistricts into which the Second Federal Reserve District (with the exception of three boroughs of the City of New York) is divided. Working at headquarters is the permanent staff of the distribution committee, at the head of which is the director of distribution, whose function is t h a t of a responsible executive in charge of an immense and very active bond-selling organization. The headquarters' business of the distribution committee is handled by a staff which numbers 99 persons, including the executive secretaries who act as assistants to the subdistrict chairmen. ORGANIZATION OUTSIDE METROPOLITAN DISTRICT. The subdistrict chairmen establish the connection between the central organization and the local Liberty loan committees. Each is the adviser of the local chairmen within his subdistrict, and is responsible for the success of the loan within its limits. He transmits and adapts to the requirement of local communities the plans prepared at headquarters, and sees that the local committees make full use of material prepared there, in so far as it is fitted to local requirements. The local committees develop ideas and plans of their own with the greatest ingenuity, making their campaigns personal and direct to their own citizens. 100823°—19 23 354 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. The highly creditable showing made in the subdistricts is directly attributable to the energy and capacity of the chairmen of the local committees, who have served with a high sense of patriotism, entirely forgetting their personal affairs during the loan campaigns and devoting themselves to their success. I n the small towns the local chairman has worked with limited resources, b u t has covered his territory personally and with his committee, soliciting subscriptions and arousing people to a full sense of their obligation. In the larger towns the methods have been similar to those employed in the metropolitan district. Many of the chairmen responsible for large or populous areas have made card indexes of all possible subscribers, working out in detail t h e plan of assigning quotas to component communities. Subscriptions have been sought, however, on a purely voluntary basis. I n the third loan campaign there were 1,425 local men's committees, each with its chairman and members drawn from the leading citizens of the neighborhood, numbering in all 21,200. The number of men's committees in the fourth loan rose to 2,075, with a total membership of 30,800, to which should be added a vast army of volunteers composed of associate members, members of allied organizations, canvassers, speakers and workers, all serving with the single purpose of achieving this district's share of the Liberty loan. ORGANIZATION IN METROPOLITAN DISTRICT. Only two of the five boroughs of the city of New York were included in. the subdistrict organization. These were Queens and Richmond, which were regarded as parts of the Long Island subdistrict. The other three boroughs, Manhattan, Brooklyn, and 'The Bronx, because of their immense population and special character, were treated separately as constituting the Metropolitan District. Brooklyn and The Bronx each had its own borough organization. Manhattan was covered by many organizations, some of which inevitably overlapped, and was in many ways the center for the whole campaign in the Second Federal Reserve District. The organizations which concentrated on the Borough of Manh a t t a n were not for the most part limited by geographic lines, but Manhattan was the chief field of activity. These organizations included an advisory trades committee, which alone accounted for half of the subscriptions secured in the Second Federal Reserve District; a metropolitan canvass committee, composed of 90,000 workers, which devoted itself to the house-to-house and man-toman campaign; the commercial banks and trust companies committee, which was organized for the first time shortly before the third loan for the purpose of coordinating the Liberty loan work of the financial institutions of the city; the municipal employees committee, DISTRICT i m 2 2STEW YOBK. 355 which canvassed t h e 100,000 employees of the city of New York; the insurance committee; the New York Stock Exchange committee; the Consolidated Stock Exchange committee; the public utilities committee; t h e New York Cotton Exchange committee, and t h e religious organizations committee, Of these, the two largest in point of membership were t h e advisory trades committee and the Metropolitan canvass committee. The advisory trades committee.—This committee, composed of 11 executive members, each of whom in turn was responsible for the campaign among five to twelve groups of trades, aimed to secure corporation and firm subscriptions, and the subscriptions of employes. I n the fourth loan every effort was made t o have t h e employees of large concerns control their own Liberty loan committees, thereby removing the element of employer's compulsion in securing subscriptions. The quota assigned t o t h e advisory trades committee in the third loan was arbitrarily fixed at half the total quota for t h e Second Federal Reserve District. A week before t h e end of the campaign the committee passed its second loan total, and on the day before t h e close exceeded its quota. Over 5>000 industrial honor flags were awarded to individual firms or plants where 60 per cent or more of t h e employees subscribed. I n the fourth loan a complete card index of all industrial concerns was prepared, forming a list of prospects which was allotted among 85 subcommittees 1 , having an aggregate membership of 3,485 and an organization of 18,000 volunteer workers, which canvassed approximately 125,000 concerns in the greater city. The quota, fixed at 90 per cent above the quota assigned for the third loan, was greatly exceeded. The committee's record was: Quota. Third loan $-150,000,000 805,205,000 Amount of subscriptions. $564,767,950 1,083,861,000 The metropolitan canvass committee.—This committee undertook the house-to-house canvass in the Boroughs of Manhattan, Brooklyn, and The Bronx. I t was organized according t o t h e precincts of the municipal police department, with a borough chairman, and a captain and lieutenants in each precinct. Aside from t h e intensive work within t h e precincts it carried on a campaign through t h e public schools, held innumerable street meetings, many large mass meetings in public halls and armories, and supervised a flying squadron of "traveling b a n k s " which took subscriptions in many parts of the city. I n the fourth loan it augmented its plan of organization by making use of the extraordinary ability of the police and fire depart 356 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. ments to sell bonds. The total number of subscriptions received through the committee was: Number of subscribers. 1,099,367 1,296,511 Third loan Amount of subscriptions. $145,475,500 378,480,050 WOMAN S COMMITTEE. This committee was developed from the comparatively haphazard association of workers in the first Liberty loan to a closely knit well-administered organization in the fourth Liberty loan. The activity of women in support of the Liberty loan has been one of the particular features of the campaigns in this district. They have shown an increasing desire to work for the loans and in many cases have regarded it as a privilege. I n preparation for the third loan campaign 1,310 local committees were organized in 70 counties, with about 18,500 volunteer workers— a threefold increase from the second loan. The returns indicate t h a t the woman's committee procured at least $110,000,000 of subscriptions. This figure is probably considerably less than the actual total secured, because in many cases the results were merged with reports of the men's local committees. I n the fourth loan campaign they were still more intensively organized, with commensurate results. There were 1,861 local committees in 72 counties, and about 35,000 workers. The subscriptions secured amounted to $203,383,850, almost all in small amounts. More than 562,000 individual subscriptions were in amounts of less than $500. I n other words, the woman's organization was responsible for 16 per cent of the number of subscriptions, and 10 per cent of the amount of bonds sold in this district. PARTIAL PAYMENTS. From the first of the Liberty loans there was a very general demand throughout the country for installment purchases on an easier basis than t h a t provided in the Government plan. Various expedients were resorted to. I n many cases employers carried the bonds for their employees. I n others, banks agreed to carry bonds for subscribers in their neighborhoods on the basis of weekly or monthly payments. A duplicate card system, enabling banks b y a single punch to record payments made by subscribers, was made available for free distribution to the banks generally in this district, besides which a number of banks developed their own plans. I n the first campaign, in so far as figures are available, the number of partial DISTRICT NO. 2 N E W YORK. 357 payment subscribers was comparatively small. But as greater efforts were made in the second campaign, a large number of small subscribers was secured, the estimated number for Greater New York being 318,000, with an aggregate subscription of $29,500,000. The result, from the standpoint of both banks and subscribers, was far from satisfactory. Subscribers found that paying week after week at the same bank during the usual banking hours cost them time and carfare equal perhaps to the value of the bonds which they were purchasing. Further, banks and branches of banks in outlying districts and in centers of dense population carried by far the greatest part of the burden, while the large banks in the financial district whose resources and staff were best able to take care of the work had comparatively little to do. With the approach of the third loan, the Liberty loan organization had to choose between discontinuing partial payments in the Metropolitan district or providing a mechanism whereby the operation could be handled under the supervision of the Federal Reserve Bank. The latter alternative was taken and, with the approval of the Treasury Department, the Liberty Loan Association of banks and trust companies of New York City was formed. This was a syndicate of 130 banks, which agreed to subscribe for and carry a total of not over $ 100,000,000 in bonds for the benefit of small subscribers. Coupon books were sold at $2 each for $50 bonds and$4eachfor$100 bonds with the understanding t h a t payments should be made once a week for 48 weeks. The subscriber presented his book at any one of the 680 banks or payment stations throughout the greater city, which received the payment, stamped a coupon, detached it, and sent it to the administration office of the Liberty loan association where the payment was recorded, and through which, wThen the payments had been completed, the bond was delivered. This undertaking involved the handling of more than 800,000 active accounts, some of which are constantly being closed out with adjustments of interest and the return of the principal, and many of which are delinquent and require a notification and adjustment. The staff required to handle this operation is at present 317 persons. When the books were first opened wTork went on in two shifts through most of the 24 hours of the day. I n the fourth loan, the plan was again adopted, but with important administrative changes reducing materially the cost of the operation. Instead of the detachable coupon, the subscriber purchases gummed receipts which are placed in the books as a record of payments. The plan also provided for a follow-up method of reaching delinquent subscribers. The cost of administration has been materially less and the number of employees required to handle it is about 130. 358 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. The smaller number of subscriptions received in the fourth loan plan is undoubtedly accounted for because the initial payment was 8 per cent., and because payments were to be completed in 23 instead of 48 weeks. The comparison is as follows: Third loan. Books sold Value of bonds The two plans require accounts. The number ciation to p a y u p in full about their subscriptions 836,363 $46,700,000 Fourth loan. 786,000 $44,109,000 Total. 1,022,363 $90,800,000 the handling of upward of 1,600,000 current of persons calling at the office of the assoand receive their bonds or to make inquiry has reached in a single day as high as 15,000. PUBLICITY. Hand in hand with the sales organization, and as an essential accompaniment to its purpose of selling bonds is the publicity organization. B u t the publicity department has had before it a purpose not limited t o the sale of the Liberty loan, nor even limited to the immensely greater object of producing in the minds of the American people a desire t o save and to invest. Liberty loan publicity has consistently worked to spread the ideas America had in entering the war and to declare the need for attaining a decisive victory. I n every newspaper and magazine, on every billboard, on every fence, on almost every lamppost, vehicle, and flagstaff, and in almost every store and householder's window the message of the Liberty loan and of America has been carried. The publicity of the firsthand second loans laid the groundwork of a genuinely American appeal, showing the necessity for winning the war and the obligation of every American to participate in its high purposes. With the opening of the third loan our active p a r t in the armed conflict had begun. The German spring campaign was in its full flood, and everywhere was a lurking fear as t o how far it might go. The note of danger, of the very serious menace confronting the free nations of the world, together with the determination of the United States to see it through, was the burden of the printed and spoken word carried in the publicity material. The events in France furnished the visible support to all t h a t was said and written, and the selective service act had brought the fact of war to every neighborhood in a most concrete way. These things, dwelt upon in pamphlet, poster, and public speech, were reflected in the immensely increased volume of popular subscriptions. When the early preparations were under way for the fourth loan it seemed likely t h a t similar conditions would prevail and t h a t the ideas behind fourth loan publicity should be to the same effect as DISTRICT $T0. 2 — N E W YORK. 359 before. The designs for posters selected in Washington in June for the whole country depicted war in its grimmest aspects, and even went to the point of warning America against German invasion of our own shores. Some of the advertising and pamphlets prepared in that early time reflected the same thought. But by the time the campaign had arrived the face of the war had completely changed— to a degree far greater than the most optimistic in June had dared to hope. Added to the tendency toward relaxation of concrete efforts which victories on all fronts induced was the German peace proposal, launched in the midst of the loan campaign. The complete shift in conditions forced a corresponding change of methods in the very heat of the campaign. This district threw out a last-minute appeal to "Double the third," the effect of which was to put the campaign in competition with its forerunner, and on a domestic basis. Special acknowledgment should be made of the invaluable services rendered to this district by the publicity bureau of the Treasury Department. PUBLICITY ORGANIZATION AND RESULTS. The publicity department in this district carries1 on its work along five lines, each administered by a separate bureau—press bureau, feature bureau, advertising bureau, the bureau of speakers and meetings, and the foreign language bureau. The press bureau is established on the plan of a modern newspaper office with editors, editorial writers, writers of special articles, and reporters. Prior to the campaign it supplies articles of a general nature to magazines throughout the United States and prepares special material for production in Sunday newspapers during the period of the campaign. Included in this material are cartoons, editorials, poems, articles for trade, technical, and financial magazines, farm periodicals, theater programs, and labor magazines. During the campaign it gives daily news, not only of the results of sales, b u t of the numerous activities carried on by various Liberty loan organizations throughout the city and district, including a very considerable amount of plate matter sent out to weekly newspapers. All told, during the third loan the press bureau records show that 26,850 columns of matter was printed in the form furnished; in the fourth loan the total rose by 7,000 columns. The total number of Liberty loan articles printed in the district increased from 111,207 to 141,443, with a total of 59,932 columns. The feature bureau, which has the work of preparing and producing special Liberty loan features of a publicity nature, undertook the direction of all parades, indoor "and outdoor exhibits, the production of moving pictures, and the supply of flags, banners, badges, and novelties. In the third loan it had as the principal feature of its New 360 ANNUAL REPORT OF T H E FEDERAL- RESERVE BOARD. York City campaign, " Liberty land/' a war exhibit in the Sixty-ninth Regiment Armory, where the first veterans to return to this country from Gen. Pershing's forces and a detachment of French chasseurs, the "Blue Devils," were presented in a dramatic way to audiences aggregating 250,000 in 19 days. In the fourth loan it made the "Liberty altar" at Madison Square the center of Liberty loan activities. It was at the foot of "The Avenue of the Allies" into which Fifth Avenue was transformed. This great center for Liberty loan pageantry was an expression of the idea of unity among the free nations of the world. Members of the French Foreign Legion, the Italian Bersaglieri, the Alpini, the French Army Band, and the Italian Grenadier Band participated in the campaign under the direction of the bureau. Certain of them appeared in the Liberty day parade led by President Wilson, in which 35,000 persons marched. Others served throughout the district, singly and on special trains. The advertising bureau, the largest branch of the publicity organization, prepared all newspaper advertising put out from headquarters, secured advertising space, and developed advertising printed matter in great variety, which it distributed through the district. The value of the advertising space obtained through the generosity of merchants, bankers, manufacturers, and private contributors for the third loan between January 1 and June 1 was estimated at $1,750,000*,in the fourth loan at more than $2,000,000. For the third loan the bureau distributed nearly 85,000,000 pieces of printed matter, of which 47,000,000 were published in this district; in the fourth loan 96,000,000 pieces were distributed. In the fourth loan the services of many artists known throughout the country were used in the production of special canvasses for window display and for billboard reproduction. In response to requests made to the speakers' bureau, many members of the diplomatic corps and officers of the Federal and State governments, as well as many hundred men and women of prominence, spoke at Liberty loan meetings throughout the district. The chief of these was held at the Metropolitan Opera House in New York City just prior to the opening of the fourth loan campaign, when President Wilson made his last public address before Germany entered upon the discussion of peace. The work of the foreign language bureau, coordinated with the other bureaus of the publicity department and with the distribution committee, carried the work of the Liberty loan among the foreignborn residents of the district. The increase of their interest is shown by the fact that in the second loan about 25 per cent of the foreign-born residents subscribed to Liberty bonds, in the third 55 per cent, and in the fourth 80 per cent. DISTRICT NO. 2 — N E W 361 YORK, The publicity department, in addition to many volunteers, had a personnel of 664 paid employees in the fourth loan campaign, including 201 persons in its fixed organization. RECEIPTS, DELIVERIES, EXCHANGES, AND CONVERSIONS. An index to the size of the Second Federal Reserve District's participation in the Liberty loans appears in the record of transactions of the bond issue division of the Federal Reserve Bank; b u t to comprehend their volume it is necessary to imagine a corporation with over 3,000,000 bondholders, with bonds in many denominations, of seven different issues, and distributed among holders unaccustomed to financial practices. As a matter of fact the bond issue division, which handles this vast volume of business, deals also with bonds sold in other districts which find their way to New York for exchange or conversion. Through the ability of the Treasury Department to supply definitive bonds early in each of the two campaigns of 1918, it has been possible for the bond issue division to give far more prompt service than during 1917. I n the case of bonds sold for cash during the campaign deliveries have been made immediately. I n the third Liberty loan the number of pieces so delivered was 999,378. This figure rose to 1,352,586 in the fourth Liberty loan. At the close of business Monday, November 4, the day on which payments and deliveries should be made on coupon bonds of the fourth loan paid for in full, a total of certificates of indebtedness, credits, and cash had been received against subscriptions amounting to $1,484,329,895. On t h a t day also 2,560,473 pieces were available for delivery by banks throughout the district and out-of-town banks were able, because of prior receipts of bonds, to make deliveries to subscribers on exactly the same footing as banks in New York City. The following table shows the comparative transactions in the third and fourth loans, the transactions in the latter running only to December 3 1 : Third Liberty loan Cash sales during campaign Total receipts, including cash sales: Principal Accrued interest Method of payment: Certificates of indebtedness Advice of credit Cash Bonds full-paid with: First installment date Second installment date Third installment date Fourth installment date Bond deliveries: Coupon bonds Registered bonds Number of pieces delivered: Coupon bonds Registered bonds Fourth Liberty loan. $144,276,250.00 $224,640,050.00 1,115,243,650.00 2,048,165.46 1,854,038,500.00 920,626.41 187,223,000.00 797,301,916.55 132,766,898.91 712,758,500.00 999,295,804.89 142,904,821.52 796,8S6,900.00 58,266,650. 00 78,823,300.00 181,266,800.00 1,422,001,550.00 151,405,500.00 91,112,400.00 1,019,020,350.00 66,223,300.00 1,517,611,800.00 5,201,150.00 4,149,163 71,014 4,145,150 8,721 362 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Throughout the year exchanges were freely made from one denomination to another of the same issue, immediate deliveries being m a d e in every case. The exchanges indicate that a large number of small denomination bonds which have been sold b y subscribe rs are m constant process of exchange into bonds of $1,000 denomination. The total volume exchanged during 1918 was in excess of $1,100,000,000. The number of pieces handled was: Received, 4,103,229 pieces; delivered, 1,637,490 pieces. The conversion privilege attaching to the two earlier issues has also resulted in large deliveries of new bonds. The bank made every effort b y repeated transmission of circulars to the banks of the district and b y advertising in the newspapers to induce holders of the earlier issues to convert within the time prescribed b y the Secretary of the Treasury, which terminated on November 9, 1918. T h e following is a statement of the conversions to December 31, a small number of items still remaining unadjusted: Converted from one interest rate to another: First 3J per cent bonds to 4 per cent (Nov. 8, 1917-May 15,1918). $113, 385, 650 Number of deliveries, pieces 737, 852 First 3i per cent bonds to 41 per cent $1,806,600 First 4 per cent bond3 to 4 | per cent $74,117,750 Number of deliveries, including deliveries made on converting first 3§ per cent to 4 J per cent, pieces 262,173 Second 4 per cent bonds to 4} per cent $1,045,931,500 Number of deliveries, pieces 1, 596, 990 Aggregate number of pieces bandied, incoming and outgoing 4, 098, 205 Special provision was made for converting bonds without delay for owners who called in person. The largest number of such applications received in any one day was 2,161. I n the last eleven days of the conversion period approximately 25 per cent of the total number of conversions handled in this way were made. GOVERNMENT DEPOSITS. The depositing of the proceeds of sales of Liberty loans and certificates of indebtedness was undertaken in accordance with law at the request of the Secretary of the Treasury. Depositaries were appointed b y the Federal Reserve Bank, which had the responsibility of receiving and approving collateral, depositing and withdrawing funds and collecting interest on deposits, all under the instruction and supervision of the Treasury Department. The duly qualified depositary banks were permitted under the law to pay for certificates of indebtedness and Liberty bonds b y opening book credits in favor of the Treasury. Because a large proportion of the deposits were created in this way possible disturbances to the money market were reduced to a minimum. DISTRICT ls T 0. 2 — I N E W YORK. 363 The withdrawal of deposits from, depositary hanks, created by the opening of credits resulting from the sale of Liberty bonds or certificates of indebtedness, has been uniformly made on instructions from the Treasury Department on a pro rata basis which has been the same for all banks in the district, and a notice of 48 hours has been given whenever possible. I n order to assist in stabilizing the money market, funds transferred by the Treasury Department from other Federal Reserve Banks to the Federal Reserve Bank of New York in excess of the amounts needed for immediate disbursement have on several occasions been redeposited at interest with qualified depositaries in New York City, subject to withdrawal without notice, and as far as possible have been placed in banks to which disbursements for account of loans to foreign Governments were likely soon to be made. I n order to minimize disturbances due to the withdrawal of funds representing payments of income and excess profit taxes during June, 1918, arrangements were made whereby the seven collectors of internal revenue in the district deposited their receipts of cash, checks, and certificates of indebtedness with this bank and all checks on banks which had been designated United States depositaries were forwarded to such banks for credit in the " w a r loan deposit account" of the Government, subject to withdrawal gradually in accordance with the Government's requirements. The number of such checks received was about 300,000, aggregating about $600,000,000. During the first loan 306 banks qualified as depositaries; in the second 533, in the third 801, and in the fourth 867. I n order to facilitate the pledging of collateral, local custodians were appointed in 49 cities, but the number was later reduced to 36. The Government deposit division of the Federal Reserve Bank, with a personnel of 63 employees, administered this function. The following shows the magnitude of the deposits and the volume of securities pledged against them: L I B E R T Y .LOAN F U N D S , Third loan, largest amount on deposit, May 14. Fourth loan, largest amount on deposit, Nov. 4 $517, 537, 883. 00 609, 182, 509. 63 CERTIFICATES OF I N D E B T E D N E S S F U N D S . Third loan, largest amount on deposit, Apr. 4. Fourth loan, largest amount on deposit, J u l y 1 0 . . . . . . . 370, 500, 000. 00 496, 300, 000. 00 S E C U R I T I E S IN' VAl.'LT. Third loan, largest amount, May 2 1 . . Fourth loan, largest amount, Oct. 26 754, 230,106. 65 754,633,510.49 S E C U R I T I E S AVITH C U S T O D I A N S . Third loan, largest amount, June 18 Fourth loan, largest amount, Oct. 26. : 379, 241, 241. 88 309, 849, 331. 41 364 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. GOVERNMENT DISBURSEMENTS. Prior to America's entry into the war the only function undertaken by the Federal Reserve Bank as fiscal agent for t h e Treasury Department was the payment of Government checks. With t h e coming of war this work has increased manyfold. Checks are of all sorts and sizes, varying from checks of less than $1 for interest on $50 registered bonds to Treasury drafts for large sums on war contracts. The growing volume of work handled in this department has necessitated the employment of an increasing number of clerks. The following table shows the number of checks handled each month, their amount and the average number of employees: Number of checl<s handled. January... February.. March April May June July August September. October... November. December. 513,383 583,719 689,958 729,716 901,319 975,381 023,146 063,603 066,270 128,706 101,626 331,154 Total Amount. $217, 659,000 209, 917,000 298, 885,000 356, 249,000 377, 466,000 389, 225,000 425. 430,000 561, 663,000 413, 990,000 515, 999,000 553, 637,000 616, 472,000 Average number of employees. 15 15 20 20 20 25 25 30 30 35 40 40 4,936,592,000 The record day was December 26, when 102,175 checks were handled. The payments of the Treasury through this bank, since April 1, 1917, exclusive of maturing certificates and coupons, have included $7,400,000,000 of advances to foreign governments and $5,900,000,000 in miscellaneous Treasury checks, aggregating $13,300,000,000 in all, or about one-half of the entire Treasury payments, exclusive of certificates and coupons, during the 21 months. EXPENSES OF LOANS. The cost of conducting the two campaigns of 1918, of maintaining the regular sales and publicity organizations of the Liberty loan, and of carrying on the fiscal agency operations of the Federal Reserve Bank, in so far as they relate to the third and fourth Liberty loans, amounted on December 31 to $4,244,822.12. The detailed figures, as reported b y the comptroller of the Liberty loan organization, are shown in Schedule 12. The cost of operating the two partial payment plans are included in the figures for the distribution organization, and amount to date for the third and fourth loans, respectively, to $460,076.18 and $205,817.21. DISTRICT NO. 2 — N E W N E W GOVERNMENT LOAN 365 YORK. ORGANIZATION. At the close of the year, following instructions from the Secretary of the Treasury, arrangements were made to consolidate the work of the Liberty loan committee and the war savings organizations within the district under the control of the governor of t h e Federal Reserve Bank of New York as a unified Government loan organization. The War savings staff has been incorporated with the headquarters departments of the Liberty loan committee with a prospect of material reduction in administration costs, and with the expectation of coordinating the activities of the two committees more closely together than heretofore. The consolidated organization will have as its head a director of Government loan organization for the district with several vice directors. The operations of the new organization begin on January 1, 1919. WAR SAVINGS AND THRIFT STAMPS. From December 7, 1917, to December 31, 1918, the Federal Reserve Bank of New York sold war savings and thrift stamps as follows: War savings stamps (pieces). Thrift, stamps (pieces). Greater New York New York State New Jersey Connecticut Philippine Islands Haiti 2,043,486 929,208 335,305 11,394 5,000 12 10,992,771 2,682,448 2,570,566 31,734 Total 3,324,405 16,277,719 STABILIZATION 200 OF THE MONEY MARKET. Before the close of the first Liberty loan campaign, in May, 1917, it became apparent to the officers of the Federal Reserve Bank and to the members of the Liberty loan committee that steps must be taken to stabilize interest rates in the stock exchange loan market in order t h a t rates on such loans might not reach such levels as to embarrass the Treasury. The natural result of the increasing volume of Government borrowing from New York City and interior banks was the calling of loans secured by stock exchange collateral, a tendency which was increased by the desire of the banks of the country to accumulate larger amounts of paper available for discount at the Federal Reserve Bank. For some months the institutions represented on the Liberty loan committee undertook from day to day to find the large amounts of money required to be loaned on the exchange in order to avoid disturbed conditions. 366 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD, By September, 1917, however, the amount had became too large for these institutions to assume without injustice to themselves and to their customers, and a subcommittee of the Liberty loan committee was appointed, with the governor of the Federal Reserve Bank as chairman, for the purpose of effecting a more equitable distribution of the loans and devising plans for providing the funds required for the needs of the stock exchange. Under the general supervision of the Federal Reserve Bank this so-called "money committee" perfected an organization of 63 of the banks and trust companies in New York City which agreeed to place at the committee's disposal a fund to be used when necessary in making loans on stock exchange collateral, the participation of each institution being determined according to its assets, Tills arrangement, undertaken at first in consultation with the Secretary of the Treasury; has been renewed from time to time at his request. As experience was obtained changes were effected in the plan of participation, and an arrangement was finally reached which reapportioned among the participating banks, on the basis of their assets, the aggregate volume of stock exchange call loans which they were then carrying in the aggregate and provided for an additional loaning fund of $200,000,000 to be used when necessary. I n October owing to military and political developments it became evident t h a t a large speculation in securities was developing, notwithstanding the fact t h a t the fourth Liberty loan was in course of being placed and the Government requirements for credit were at a maximum. Under these circumstances the committee felt it necessary to adopt some positive measures of restriction and arranged with the banks participating in the fund to increase the margins required for stock exchange loans from the customary minimum of 20 per cent to a minimum of 30 per cent. At the same time, by arrangement with the officers and a committee of the stock exchange, to which all members of the exchange were reporting the total amount of their borrowings, such reports were made available to the money committee. During this period the demands upon the additional loaning fund were very heavy, due primarily to the calling of loans b y outof-town institutions and by local lenders not in the group of particip a n t banks. Upon the representation of the committee of the stock exchange t h a t the continued enforcement of the requirements for additional margin might work hardship and in some cases even injustice, the arrangement was withdrawn on December 5 upon the assurance of the committee t h a t the exchange would take steps to prevent any considerable increase in the total of the loan account of its members. The activities of the money committee were undertaken solely to insure the Government against developments in the money market DISTRICT :NT0. 2—NEW YORK. 367 in New York which would in any way militate against the success of its borrowing program. Its aims may be summarized as follows: First. To maintain a free market for securities and thereby protect the investment situation and the integrity of a great volume of bank loans made upon stock-exchange collateral. Second. To prevent high rates and wide fluctuations in the money market. Third. To prevent an increase in the total amount of credit employed in stock-exchange transactions. The records indicate t h a t the work was successfully done after the formation of the committee. The rates for call loans on stockexchange collateral, set forth in full on page 376, have ranged principally between 4 per cent and 6 per cent, never exceeding the latter figure; a free market for securities has been maintained and the amount of stock-exchange loans has been held, within reasonable bounds. I t seems clear t h a t if some agency of this character had not been functioning the Government's financial plans might have been seriously embarrassed. The New York banking institutions participating in the arrangement, as well as the officers and members of the stock exchange, have at all times accorded the money committee their support and evidenced their readiness to cooperate in rendering this important assistance to Government finance; while the members of the money committee undertook a difficult and responsible piece of work in a most public-spirited manner, and in carrying it out gave generously of their time and consideration. CAPITAL ISSUES COMMITTEE. On January 11, 1918, the Secretary of the Treasury requested the Federal Keserve Board, "pending action by Congress/' to pass upon capital expenditures and issues of new securities from the standpoint of their necessity as compared with the Government's large needs of capital, labor, material, and transportation facilities. The Board accordingly appointed from its membership a Capital Issues Committee, which secured the assistance of an advisory committee of bankers and caused subcommittees to be organized in each of the Federal Keserve districts. I n the War Finance Corporation Act, approved April 5, 1918, Congress sanctioned by law the continuance of the work of the committee, and pursuant to t h a t act the President appointed a permanent Capital Issues Committee, which in turn appointed permanent district committees in each of the Federal Keserve districts. The district committee for the Second Federal Reserve District, of which, as in other districts, the chairman of the Federal Reserve Bank was chairman and the governor vice chairman, consisted of 30 bankers, manufacturers, officers of public utilities, and others, 368 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD, I t held regular meetings, usually twice and sometimes three times weekly, usually lasting from three to five hours and attended by five or more members, in rotation, from the date of its organization until December 31, 1918, when by vote of the central committee, and with the concurrence of the Secretary of the Treasury, the active work of the committee was discontinued. Nine hundred and seventy-two applications, totaling $2,069,613,048.66, have been formally considered by the district committee, and in the majority of cases hearings were granted to applicants. With respect to 181 of these applications the district committee took final jurisdiction. Detailed reports were rendered to the Capital Issues Committee at Washington with respect to 791 applications, aggregating $1,875,123,043.80. Out of this total the district committee recommended approval of applications aggregating $1,775,343,629.80, and recommended disapproval of $99,779,414. The action of the central committee with respect to these applications was as follows: I t approved $1,722,404,611.50 and disapproved $119,368,795.25, and on or about December 31, 1918, when the committee discontinued its operations, it dismissed applications still pending aggregating $33,349,637.05. The various matters considered by the district committee have covered every variety of security issue, including issues by States, counties, and municipalities, by public utility companies, b y industrial corporations, by banks, insurance and trust companies, by syndicates and membership associations. Inasmuch as the fundamental purpose of the committee was to conserve capital, labor, materials, and transportation facilities for purposes contributing directly to the prosecution of the war, the district committee asked for and obtained from practically all public and private organizations within the Second Federal Reserve District statements of their construction programs prior to the letting of contracts for such programs. By this means much construction work which would ultimately have led to the issuance of securities was deferred, labor and materials have been released for war purposes, and the investment market has been relieved of the necessity of absorbing large amounts of securities. This committee has also obtained reports on private construction as well as on public construction to be paid for b y taxation or assessment, as distinguished from the sale of securities. I n this connection the district committee reviewed the t a x budgets of all municipalities in the Federal Reserve District which had been prepared prior to the signing of the armistice. I t also followed u p all advertised construction of churches, clubs, private residences, etc., prior to the date when machinery was instituted b y the War Industries Board requiring the licensing of all nonwar construction costing more than $2,500. DISTRICT HO. 2 — N E W YORK. 369 The committee's usefulness should not be measured only b y the applications formally presented to it and approved or disapproved by it, since the mere fact of the committee's existence in itself constituted a strong restraint upon the issuance of new securities, and few, if any, applications were presented to the committee except by those who believed t h a t their applications would be approved. The members of the committee gave most generously of their time and enjoyed the heartiest cooperation from public and private officials, from bankers, investment houses, lawyers, manufacturers, and merchants, as well as from the Investment Bankers' Association, the American Bankers' Association, the New York Stock Exchange, and the New York Curb Market Association. Without the cooperation of these individuals and associations the work of the committee would have been almost impossible. FINANCIAL CONDITIONS, BANKING IN THE SECOND FEDERAL RESERVE DISTRICT. The chart on the following page shows certain significant figures from the weekly reports of 107 banks in this district, being all the member banks in New York City, Brooklyn, Buffalo, Rochester, Newark, Albany, and Syracuse, N. Y.; Jersey City, N. J.; and Bridgeport, Conn. This chart probably gives the best picture obtainable of banking conditions in this district throughout the year. With the exception of January and February when the reports did not distinguish between Government bonds and certificates of indebtedness, the chart shows, week by week, the volume of (a) United States bonds owned, (&) certificates of indebtedness owned; (c) loans secured b y United States obligations; (d) all other loans and deposits. The dotted line (e) indicates the volume of Government deposits in the reporting banks throughout the year. I t will be noted t h a t the volume of " other loans and investments " was almost exactly the same at the beginning of the year as at the end; namely, $4,100,000,000. In fact the volume actually decreased somewhat, as 11 institutions with resources of about $350,000,000 were added to the list of reporting banks during the year. The expansion is entirely in Government securities and loans thereon. The Government bonds owned rose substantially at the close of both the third and fourth loan campaigns, with a tendency to decrease slightly thereafter. The certificates of indebtedness show the usual increases before bond sales and decreases thereafter; the volume of loans on Liberty bonds was fairly steady up to the close of the fourth loan campaign, when it increased sharply, indicating clearly the heavy borrowing which had to be resorted to in order to subscribe the quota assigned to this Federal reserve district. 100823°—19 24 370 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. CLASSIFICATION OF LOANS AND INVESTMENTS" R E m T W G MEMBER BANKS, SECOND FEDERALRESERVE IMSTRKT m j JAN. F£8. M _AFK _ _ _MAY _ _ JONg ""ST „ .. TUUV AUG SEPT. OCT. MOV. !i2Zl!ji!VLi2!!Z <toool ?0o4 A - U N I T E D STATES BONDS OWNED B - CtRTifUATES d F t N b E B T E f e ^ ^ OWNtt) C- LOANS SECURED BY UNITED STATES OBLIGATIONS O- ALL OTHER LOANS AND INVESTMENTS E- GOVERNMENT DEPOSITS 7ooo] &0OG! /OQO yoock 3 God HF ^ooot /OOoL JTAN. TE^. M C H . Ai»fc. M^X JtfME. J u U A«a. SEKT. OCT ftov. *&c. DISTRICT NT0. 2 — N E W YORK. 371 I n the following chart the two upper lines show the movements of the loans and deposits of New York Clearing House banks, while the lower line shows the course of the loans and investments of the Federal Reserve Bank. The close relationship of the two is quite apparent. Government financing and the resulting expansion of banking figures are so clearly portrayed in these two charts and have so completely overshadowed all other banking developments as to make further comment unnecessary. The action of the New York Clearing House, however, in fixing maximum rates of interest on deposits was a step of such importance toward sounder banking t h a t the extension of similar control to other communities in the district is much to be desired. The high interest rates prevailing in many parts of this district are a constant element of danger in our banking situation. Often the banks and trust companies, paying such rates, have felt impelled to invest largely in bonds of high yield. The depreciation in the market value of these securities has been so heavy during the past two years t h a t it is believed that the institutions in which high interest rates prevail may be more ready now than in the past for a reconsideration of this whole subject. I t is hoped t h a t some substantial progress in this direction may be made during 1919. GENERAL BUSINESS CONDITIONS. During January and February business and industry in this district were hampered seriously by congestion in railroad transportation and acute fuel shortage, a condition which was aggravated by extremely severe weather. Conditions improved in March, traffic began to move more freely, production increased, and, until October, industry was at its maximum capacity, with civilian needs more and more subordinated to the requirements of war. A steadily increasing proportion of manufacturing capacity was utilized for the production of war supplies, and Government supervision over industry was constantly increased, especially through control of raw materials and transportation. Of basic materials, such as iron and copper, only a very small percentage was available for other than war needs. In the textile trade, with almost no wool available for manufacture for civilian use, approximately 50 per cent of knit goods, 75 per cent of denim, and 100 per cent of cotton duck were being applied to war purposes. In every line, similar developments occurred to a greater or lesser extent. 372 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. IOAA/S "+* //yV£srM£/vrs ^ MET 3£/&s/rs o^ +** VWS'TS) Of A/.YCL£/)ft//VG MCUS£ #/)/YKS % £Af?N/NG ASSETS Or >.A JBAA/H M?W y*A>/c J7>N Fee pcoo * r MAR Afif v •» MAy TVtff &*. v v ir /*"$ y SfPT Ot7~ y v W?&) YhSbo Wso moo J>£Pos/T$ (met. qorr* a>sf>cs/rs) P?SiD \I000\ YjSo \Jdo £/9/?/y/#§ Asters - s,/e. &MK /vew yc/?/c Y&o tfof 2>£c DISTRICT NO. 2 — N E W YORK. 373 An influenza epidemic swept over the district in October, keeping many people from work and slowing up business in general. This wTas fairly w^ell checked by November, and business was proceeding at top speed with most of the necessary adjustments to war conditions effected when, on November 11, the armistice was signed. Then followed a period of uncertainty and hesitation with regard to the steps necessary to readjust business to a peace basis. Gradually Government restrictions, such as priority rules, were removed, and many lines were able promptly to return to approximately their prewar bases. Many other industries, however, felt obliged to pursue a waiting policy pending announcement of the Government's program for cancellations and the disposal of Government-owned stocks of raw materials. While the general attitude at the close of the year is one of caution, with buying limited to immediate requirements, jobbers and merchants are inclined to cooperate in effecting a gradual rather than a sudden decline in prices, and many manufacturers are disposed to retain their labor in spite of lessened output. Prices, as indicated by Bradstreet's commodity index, rose from $17.5996 on December 1, 1917, to $19.0376 on December 1, 1918, an increase of 8 per cent, indicating the decline in the purchasing power of the dollar during the period. LABOR. During the first 10 months of 1918 all lines of business and industry experienced great difficulty in obtaining and holding a sufficient supply of labor. The great scarcity of both skilled and unskilled labor led to high competitive wage offers, resulting in a large turnover. The increasing flow of women into industry helped somewhat to supply the demand, but the shortage, nevertheless, was great. The " work or fight77 order in July and Federal supervision of employment of unskilled labor helped the situation to some extent, but by the time these measures had become really effective matters were made worse again by the October influenza epidemic and the prospective operation of the enlarged draft law. Very soon after the armistice was signed the labor shortage practically disappeared. Here and there unemployment became noticeable, especially where cancellation of Government contracts resulted in closing down important plants. Unemployment was evidently on the increase throughout the month of December, and some unrest was apparent. Reports of the New York State Department of Labor, based on returns from 1,648 representative firms employing one-third of the factory workers in New York State, show that while the number of employees decreased 1 per cent during the year ending November, 1918, aggregate wages increased 21 per cent, and t h a t for the two-year 374 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. period ending November, 1918, aggregate wages increasd 43 per cent, while the number of employees increased only 6 per cent. INDUSTRIES AND STAPLES. Although limited during the winter by bad traffic, fuel, and weather conditions, and throughout the year by labor scarcity, the more essential industries in general operated at their maximum capacity up to the armistice. Less essential production was curtailed to a considerable extent, but such plants were often able to produce essential articles. The building trades were quieter than for many years, little construction other than necessary alteration and repairs being done, except for the Government or war industries. Steel production lagged somewhat through the first months of the year, due to the bitter weather and the fuel shortage. After t h a t it began to approach the standard set in 1917 and gained an impetus which continued till well toward the end of the year. The present situation in the steel industry, however, is in marked contrast with t h a t of a year ago. Then every effort was being made to meet war requirements; now the Government has practically retired from the market and steel makers face the necessity of readjusting to a peace basis, with great dullness in the building trades and the expected foreign demand not yet materializing. Maximum price-fixing by the Government was stopped J a n u a r y 1, 1919; before t h a t time steel producers had made a reduction which averaged about $4 a ton on the various grades quoted, yet prices were still about $30 above those of 1907, the highest of recent prewar years. Pig-iron production during 1918 is estimated at 38,506,249 tons, which is slightly above that of 1917, and ingot production at 42,212,000 tons, which is substantially above that of 1917. For a variety of reasons the stock of copper in process was large at the end of 1916, despite the heavy demand throughout the year. The price was lowered from 26 cents to 23 cents in December, and at the close of the year to 20 cents, though these prices were really nominal and trading was at a standstill. Cotton prices fluctuated widely during 1918, ranging from 23 cents to 37.5 cents, the spot price at the year's end being 32.6 cents. The crop was larger than t h a t of either 1917 or 1916. Mills worked at full capacity, largely on Government orders, and netted profits in excess of expectations. Woolen mill output was taken almost exclusively for Government purposes until toward the end of November. A decided fall in prices of woolen goods occurred during December. The country's wheat production for 1918 was 917,000,000 bushels, as against 636,600,000 bushels in 1917, and the Government's guaranteed price of $2.28 per bushel, which is to continue up to June, DISTRICT NO. 2 — N E W YORK. 375 1920, gave to the crop an extraordinarily high value. Corn production, on the other hand, was 2,582,814,000 bushels, as against 3,000,000,000 bushels in 1917, and prices rose from $1,279 per bushel to $1,366. Other grains, with the exception of barley and rye, showed similar price tendencies. LOCAL CROPS. , The total value of farm products, including milk, in New York State is estimated at $801,840,360 for 1918, as compared with $659,787,980 for 1917. I n many crops the actual yield increased as well as the value. The wheat crop, valued at $18,900,000, showed a production of 9,000,000 bushels as compared with 8,286,000 bushels in 1917. I n corn the increase was nearly 10,000,000 bushels, the production being 30,852,000 bushels, valued at $55,065,000. Other crops showing a substantial increase in actual yield over 1917 were oats, onions, and cabbage. Buckwheat, rye, potatoes, beans, peaches, and grapes showed a decrease as compared with 1917, while hay decreased in tonnage but increased $14,000,000 in value. Similar data for northern New Jersey are not available. MERCHANDISING. Merchandising was iairly active throughout the year. During the first ten months, retail sales of less essential articles were considerably curtailed due to war conditions, while demand for staples continued strong. The influenza epidemic caused a very excessive slackening in business during October. Following the signing of the armistice, retail sales increased decidedly in nearly all lines, due partly to the decrease of influenza, but principally to the relaxation of the rigid economies practiced during the war. The result was a holiday trade of record proportions. Up to the time of the armistice the purchases of jobbers and retailers seemed limited only by inability to obtain supplies. With the certainty of peace, however, buying became extremely conservative because of large stocks on hand and the belief t h a t declining prices were to be anticipated. MONEY RATES. Mone}^ rates averaged firmer throughout the year than during 1917. During the first half of the year the call loan rate was subject to frequent fluctuations, ranging between 4 per cent and 6 per cent from January to August. From the middle of August until the beginning of November it remained steadily at 6 per cent and was only prevented from going higher by the cooperation of the money committee and its associated banks. After the armistice the rate fluctuated, declining to 4 per cent at times, but returning to 6 per cent at the close of the year. 376 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Rates on time loans secured by stock exchange collateral were somewhat nominal as demands for loans of this kind exceeded supply during most of the year. The rates quoted in January were 5f per cent to 6 per cent for two to four months' maturities; from late February to the middle of April 6 per cent was the uniform quotation. A slightly easier tendency then set in, which continued through August, carrying rates as low as 5J per cent to 6 per cent. Rates then rose again to 6 per cent and continued so until the last week of December, when distinctly easier conditions prevailed which carried rates down to 5 | per cent to 5J per cent. The rate on commercial paper was consistently higher than during 1917, ranging from 5J per cent to 6 per cent throughout the year. The rates on bankers' acceptances have already been referred to. The chart above shows the rates on call money and commercial paper during the years 1917 and 1918. DISTRICT NO. 2 — N E W 377 YORK. THE SECURITIES MARKET. Following a sharp upward turn in stock prices in the closing week of 1917, a fairly continuous rise continued throughout 1918, reaching its high point about the middle of November, since which time prices have showed a declining tendency, although they retained a t the end of the year a very substantial gain from the low point of December a year ago. I n May and November there was trading in very heavy volume and indication of a strong upward movement. These movements, however, were not long continued, and the general course of the market has been a moderate upward rise with trading for the most part in moderate volume, the total number of shares of stock sold during the year being approximately 141,000,000, as against 184,000,000 in 1917. Unlike stock prices, prices of bonds listed on the exchange showed a declining tendency from January to April, a rather marked rise during May, followed by a further downward movement until the end of September, when apparently because of increased certainty of early victory for the allies, prices began a strong upward movement which continued well into November. Though there was a slight fall between t h a t date and the end of the year, the level reached was over three points above t h a t of January, and about six points above the low point reached in December, 1917. Over four-fifths of the total volume of bond sales consisted of Liberty bonds. With the improvement in bond prices toward the end of the year it became possible in a limited way for railroad and other corporations, with good credit to place bond issues of fairly long maturity, instead of borrowing on short term issues. Several important issues were offered and oversubscribed during the closing weeks of the year. The charts on the following page, reproduced from '' The Annalist,' r show the movement of average prices for 50 stocks, half industrials and half railroads, and the trend of bond prices during 1917 and 1918. Following are figures, also taken from " T h e A n n a l i s t / ' showing the volume of stock and bond sales, by months, during the year. Shares. January February... March , April , May , June , July August September. October... November. December. Total 13,504, 11,316, 8,207, 7,436, 21,104, 11,598, 8,347, 6,864. 8,030! 20,285! 14,720; 11,961, 143,378,095 Government bonds. $73,928,500 61,281,500 99,552,500 110,783,000 135,966,500 120,382,000 102,688,500 147,339,000 156, 175,000 176,390,500 202,558,500 310,056,000 1,697,041,500 T o t a l all b o n d s (including Government). $107,265,000 84,708,500 119,636,000 128,271,500 166,478,000 143,519,000 120,489,000 167,288,500 179,696,500 233,984,500 256,211,000 385,711,000 2,093,257,500- 378 ANNUAL REPOBT OF THE FEDERAL RESERVE BOARD. The Trend of Bond Prices—Average of 40 Listed Issues The Movement of Stock Market Averages The heavy tine shows the closing average price of fifty stocks, half industrials and half raOrtMris. The black area shows the high and low average prices of the twenty-five industrials and the whit* ares the corresponding figures for twenty-five rails. DISTRICT NO. 2 — N E W YORK. 379 FOREIGN TRADE. Total exports from the United States during 1918 are estimated at $6,100,000,000, a decrease of about $100,000,000 from the preceding year; while imports are estimated at $3,100,000,000, an increase of about $100,000,000 over 1917. Exports from this customs district, excluding Government shipments, aggregated $3,834,677,239, a decrease of $432,727,353 from 1917, and imports were $1,296,345,823, a decrease of $66,081,165. If exports carried on Government vessels, which did not clear at, or report to the customs house, were included, exports through this port would doubtless exceed those of 1917. New York's decrease in foreign trade was shared with other ports on the Atlantic coast, this whole division showing a decrease of 14 per cent in exports and 7 per cent in imports, while the Pacific coast gained 70 per cent in exports and 30 per cent in imports. This shifting in trade is the result of the slight decrease in exports to Europe, other than Government exports, coupled with the decided decrease in imports from t h a t continent and on the other hand, of the large gain in both exports to and imports from Asia and Oceania. Total imports from Europe are estimated at $350,000,000, compared with $550,000,000 in 1917 and $900,000,000 in 1912, a representative prewar year. Imports from Asia are estimated at $900,000,000 against $758,000,000 in 1917 and from Oceania $165,000,000 against $100,000,000 in 1917. Exports to Asia are estimated at $450,000,000 as compared with $430,000,000 in 1917 and to Oceania $150,000,000 as compared with $117,000,000 in 1917. There was little change in the amount of either exports to or imports from South America as a whole. Imports from Mexico increased about 12 per cent while exports decreased slightly. There was a considerable increase in trade with Canada. Our excess of exports over imports during the European war totaled about $11,000,000,000, 380 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. E X H I B I T A.—Movement of principal earning assets of the Federal Reserve Bank of New York during the calendar year 1918, [In t h o u s a n d s of dollars; i. e., 000 o m i t t e d . ] (1) (2) Discounted paper secured Other b y U n i t e d discountS t a t e s war] ed paper. obligations. Jan. 4 11.... 18.... 25.... Feb. 1 . . . . 8.... 15... 21... Mar. 1 8.... 15... 22... 28-29. Apr. 5 12... 19... 26... May 3 . . . . 10... 17... 24... 31... June 7 14... 21... 28... July 5 12... 19... 26... Aug. 2 9.... 16... 23... 30.... Sept. 6 13.... 20... 27... Oct. 4 10-11. 18... 25... Nov. 1 8 15... 22.... 29... Dee. 6 13.... 20... 27..., 150, 152, 157, 152, 138, 117, 97, 110, 129, 137, 144, 161, 162, 160, 288, 356, 379, 348, 373, 304, 380, 340, 395, 399, 306, 165, 237, 280, 261, 272, 264, 285, 315, 405, 415, 453, 487, 524, 564, 546, 589, 547, 476, 514, 574, 580, 555, 626, 669, 624, 534, 610, 92,293 79,905 69,689 70,199 77,079 59,787 63,918 67,322 88,062 86,271 96,576 87,662 84,949 74,086 58,388 52,895 54,410 52,225 76,723 64,416 62,171 67,472 66,129 69,194 76,992 93,796 124,640 132,659 147,452 124,210 104,832 127,001 126,472 147,380 146,418 130,199 134,034 132,421 113,074 99,157 106,391 96,543 104,749 110,459 103,678 94,444 95,312 84,263 83,704 73,314 54,114 41,605 (3) (4) (1+2) Bills bought in open market. 242,618 232,430 227,314 222,620 215,529 177,237 161,396 177,330 217,801 223,296 241,146 249,280 247,917 234,513 346,507 409,372 434,256 401,092 450,024 368,714 442,175 408,275 462,099 468,535 383,303 259,265 362,022 413,001 409,170 396,395 369,158 412,455 442,065 552,409 561,639 584,099 621,845 657,387 677,362 645,679 696,208 643,963 580,817 624,612 678,333 674,992 650,846 711,168 753,544 698,267 588,862 652,375 152,377 150,982 155,570 168,278 177,407 166,237 170,760 176,737 165,545 178,256 182,116 179,905 130,887 127,743 123,108 117,406 121,027 124,463 126,650 130,439 138,983 133,420 130,580 127,966 123,458 115,813 112,416 113,256 104,561 104,033 116,722 113,106 112,692 125,276 121,875 120,762 123,016 131,978 155,575 112,506 118,702 127,040 142,156 129,944 134,045 166,938 172,204 166,732 107,883 99,521 84,491 69,323 (5) (0) T o t a l bills discount- P e r c e n t ed and (1-5) bought. 394,995 383,412 382,884 390,898 392,936 343,474 332,156 354,067 383,346 401,552 423,262 429,185 378,804 362,256 469,615 526,778 555,283 525,555 576,674 499,153 581,158 541,695 592,679 596,501 506,761 375,078 474,438 526,257 513,731 500,428 485,880 525,561 554,757 677,685 683,514 704,861 744,861 789,365 832,937 758,185 814,910 771,003 722,973 754,556 812,378 841,930 823,050 877,900 861,427 797,788 673,353 721,698 38.1 39.8 41.2 39.0 35.2 34.2 29.3 31.1 33.8 34.1 34.2 37.7 43.0 44.3 61.4 67.7 68.4 66.4 64.7 61.0 65.4 62.9 66.8 66.9 60.4 44.1 50.0 53.3 50.9 54.4 54.4 54.3 56.9 59.8 60.7 64.4 65.5 66.5 67.7 72.1 72.4 71.0 65.8 68.1 70.7 69.0 67.5 71.4 77.8 78.3 79.4 84.6 (7) Total earning assets. 432,786 457,188 437,696 411,742; 407,792 455,671 383,419 471,441 475,894 528,073 565,452 586,637 550,915, 547,488' 547,627 532,803 559,196 529,660 655,586544,203 587,389 621,690 622,776 603,324 512,797 574,590 478,623 546,062518,519 505,584 491,445 530,650 574,996. 689,296 697,404 720,192 764,640 813,092 860,446 785,051 845,594 802,387 937,343 791,894 850,867 880,356 919,007 •914,721 901,158 840,973 869,299* 925,424 DISTRICT NO. 2—NEW YORK. ^ $ 381 FEDERAL RESERVE BANK OF NEW YORK. I ^ MOffEMENTOF EARNING ASSETS } j DURING THE CAlENDARJEARlSld. f G&rve /: IVar^banlPan^r. Gzriv2:Jofol3li[Jk3iscczmfed,. €Urve4:Sotzd£krnx>tgJ?sse£s, itwl. U.S. <JOV6rnm&t£Ssczir£6i6$. * 8 / \900\ to 'I \600\ \3S\ \so\ \*\ 4tlt8BltlS2it <f l£-Z£}S2&263K>17d43I7 HZ!28S1ZI9XZ3 !6aX6tSZ3Z>4IllSan<?giZ296l3&2'\ \0 JAN. \FBB. I MCH. I APR. 1 MAY WUNE\ JULY \ JUS. \S£PT.\ OCT. | /VQy. \ DEC~. 382 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. E X H I B I T B . — M o v e m e n t of cash reserves, net deposits, Federal reserve note and the reserve percentage of the Federal Reserve Bank of New York during the year 1918. [In thousands of dollars; i. e., 000 omitted.] (1) Total cash reserves. Jan. 4 . . . 11.. 18.. 25.. Feb. 1... 8.. 15. 21. Mar.. 1 . . 8.. 15. 22. 29. Apr. 5 . . 12. 19. May 3 . . . 10.. 17.. 24.. 3t.. June 7 . . . 14.. 21.. 28.. July 5 . . . 12.. 19.. 26.. Aug. 2 . . . 9... 16.. 23.. 30.. Sept. 6 . . 13. 20. 27. Oct. 4 . . . 10.. 18.. 25.. Nov. 1... 8... 15.. 22.. 29.. Dec. 6 . . . 13.. 20.. 27.. 8640,449 647,594 681,512 716,663 728,939 716,255 734,370 694,694 684,538 678, 705 620,106 650,091 684,332 703,264 744,828 711,656 711,038 735,128 735,903 708,919 710,674 652,310 684,387 705,992 751,183 853.123 851,681 768,413 884,969 896,063 926,410 876,985 798,687 728,728 721,916 755,426 691,481 662,477 635.562 700,831 693,328 672,474 655,720 730.124 703,461 667,630 664,232 648,654 649,955 726,168 709,809 637,295 (2) Net deposits. $649,728 689,642 699,814 709,060 715.718 745,540 682,224 716,017 695,370 730,452 699,005 741,594 732,152 739,605 774,289 720,948 742,478 731,063 852,880 717,333 763,313 736.719 749,376 745,005 690,637 837,944 711,714 689,972 768,761 755,235 762,001 740,875 704,423 738,765 726,035 761,648 730,560 740,561 753,465 721,785 762,126 696,141 819,690 746,415 768,139 769,217 805,863 783,288 767,534 784,023 781,452 763,230 (3) Federal Reserve notes in actual circulation. liabilities calendar (4) (5) (2+3) Ratio of cash reserves to net deposits and Federal Reserve note liabilities combined. $402,900 $1,052,628 394,466 1.084,108 398,610 1,097,924 397,462 1,106,522 398,933 1,114,651 404,131 1,149,671 412,449 1,094,673 426,557 1,142,574 441,025 1,136,395 451,781 1,182,233 461,719 1,160,724 469,752 1,211,346 477,598 1,209,750 485,233 1,224,838 491,776 1,266,065 496, 636 1,217,584 500,640 1,243,118 508,560 1,239,623 511,004 1,363,884 507,826 1,225,159 506,342 1,269,655 517,108 1,253,827 536,764 1,286,140 537,918 1,282,923 546,707 1,237,344 562,848 1,400,792 591,791 1,303,505 598,007 1,287,979 607,890 1,376,651 620,439 1,375,674 628,402 1,390,403 638,917 1,379,792 640,879 1,345,302 649, 650 1,388,415 659,766 1,385,801 678,298 1,439,946 686,399 1,416,959 693,083 1,433,644 699,650 1,453,115 719,317 1,441,102 727,384 1,489,510 728,859 1,425,000 721,939 1,541,629 722,067 1,468,482 730,483 1,498,622 723,355 1,492,572 718,784 1,524,647 720,294 1,503,582 721,544 1,489,078 718,518 1,502,541 734,065 1,515,517 736,552 1,499,782 60.8 59.7 62.1 64.8 65.4 62.3 67.1 60.8 60.2 57.4 53.4 53.7 56.6 57.4 58.8 58.4 57.2 59.3 54.0 57.9 56.0 52.0 53.2 55.0 60.7 60.9 65.3 59.7 64.3 65.1 66.6 63.6 59.4 52.5 52.1 52.5 48.8 46.2 43.7 48.6 46.5 47.2 42.5 49.7 46.9 44.7 43.6 43.1 43.6 48.3 46.8 42.5 DISTRICT NO. 2 — N E W YORK. FEDERAL RESERVE BANK OFNEW YORK. DEPOSIT AND NOTE LIABILITIES, ALSO CASH RESERVES, DURING THE CALENDAR YEAR 1318. €urv&4.Jtcvbw of Castu/teserpes toJlggregate J&£Zkfiosittmd. JF&.jVote/uz&iltfies. -to? i/0\B6U\ *r\eo-baxA \ssVOSD \so Ur 900 VSO \600\ \4S0 \3O0 ISO t // 18X14 ISZ /<T /S&&SiZT9X310l?ZW? HB 2SS12&IS2S 1623306132027411 I82£l61522296l3aj27\ JAM. 1 FEB. I MCtt.\ APR- \MAY\JUNE\ JULY \AUO. \SEPT.\ OCT. \ NOV\ DEC. 383 fill 384 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. SCHEDULE 1.—Balance sheet. D e c . 31, 1918. D e c . 31, 1917. D e c . 31, 1916. $274,392,165.00 $250,598,565.00 $107,003,765.00 25,000,000.00 66,790,455.76 79,101,340.83 179,674,646.70 43,038,200.00 4,531,976.85 10,000,000.00 5,854,000.00 68,113,616.99 275,130,455.00 31,322,275.00 8,925,743.85 250 000 00 20,570,'000.'00 159,321,257.50 11,188,200.00 4,077,274.80 672,528,785.14 649,944,655.84 302,410,497.30 697,341,455.69 77,576,632.94 225,117,913.30 148,770,185.44 25,191,033.66 5,168,599.64 4,493,000.00 15,000,000.00 7,071,158.55 41,457,184.04 KESOURCES. Reserves: Gold w i t h F e d e r a l R e s e r v e a g e n t Gold r e d e m p t i o n f u n d for F e d e r a l R e s e r v e notes Gold s e t t l e m e n t fund Gold coin a n d certificates Legal tender notes Silver certificates a n d coin T o t a l reserves Loans and discounts: Bills d i s c o u n t e d for m e m b e r b a n k s Acceptances p u r c h a s e d R e d i s c o u n t s for o t h e r F e d e r a l R e s e r v e B a n k s . . United States bonds U n i t e d S t a t e s certificates of i n d e b t e d n e s s U n i t e d S t a t e s securities h e l d t o secure F e d e r a l 1,447,700.00 521,000.00 93,374,500.00 1,042,550.00 1,205,000.00 34,955,000.00 Municipal warrants Total investments O t h e r resources: F e d e r a l R e s e r v e n o t e s a n d o t h e r cash R e d e m p t i o n f u n d F e d e r a l R e s e r v e b a n k notesI t e m s i n process of collection E x c h a n g e s for clearing h o u s e a n d s u n d r y cash I n t e r e s t accrued o n U n i t e d S t a t e s b o n d s Deferred charges a n d p r e p a i d e x p e n s e s A d v a n c e s m a d e for T r e a s u r e r U n i t e d S t a t e s , a c c o u n t expenses L i b e r t y l o a n a n d w a r sav- 510,701.32 972,311.62 905,216,288.63 424,251,433.36 51,748,204.21 97,048,219.95 751,000.00 1,689,250.00 145,736,177.53. 59,752,685.24 13,865,897.40 48,091,790.20 23,077,418.64 36,401,491.78 6,770,374.11 172,878.27 150,194.29 26,429,660.74 2 503 168 21 73,620.28 20,458.22 12,501.88 8,753.52 3,023,724.56 2,317,692.39 360,350.01 294,061,002.88 134,728,564.69 39,703,338.57 1,871,806,076.65 1,208,924,653.89 393,862,040.08 20,820,100.00 8,322,040.00 18,695,950.00 649,363.56 11 865 750 00 29,142,140.00 19,345,313.56 12,028,813.98 5,705,629.16 95,976,172.85 705,062,061.27 72,173,899.90 5,382,207.29 11,870,767.74 3,335,930.00 652,791,808.26 35,553,478.43 10,317,630.16 235,598.86 T o t a l o t h e r resources T o t a l resources LIABILITIES. Capital: Profit a n d loss 163,063.98 Total capital fund Deposits: D u e to United States Government D u e t o m e m b e r b a n k s , uncollected f u n d s D u e to n o n m e m b e r b a n k s , deposit account D u e t o o t h e r F e d e r a l R e s e r v e B a n k s , collected funds D u e t o o t h e r F e d e r a l R e s e r v e B a n k s , uncollected f u n d s Cashiers' checks o u t s t a n d i n g Gross d e p o s i t s Notes: F e d e r a l Reserve n o t e s o u t s t a n d i n g Total Other liabilities: D e p r e c i a t i o n reserve a c c o u n t Unearned discount and interest P a r t i c i p a t i o n certificates L i b e r t y l o a n b o n d s . . . T o t a l o t h e r liabilities T o t a l liabilities * 3,571,391.94 237,907,354.87 18,552,984.84 78,986,137.26 7,610,609.86 12 373,721.91 6,934,425.41 4,998,919.04 5,156,779.75 4,821,683.09 2,085,975.49 188,275.81 975,219,452.18 731,458,687.29 274 679.704 86 819,015,835.00 33,785,000.00 456,338,565.00 107,003,765.00 852,800,835.00 456,338,565.00 107,003,765.00 505,255.00 1,308,769.90 34,410.00 12,795,214.57 205,880.00 1,348,238.04 227,970.00 149 756.24 14,643,649.47 1,782,088.04 149,756.24 1,871,806,076.65 1,208,924,653.89 393,862,040.08 385 DISTRICT N O . 2 — N E W YORK. SCHEDULE 2.—Income and expense statement. 1918 INCOME. Bills d i s c o u n t e d for m e m b e r s AcceDtances b o u g h t U n i t e d S t a t e s securities Municipal warrants 1 ! $17,736,260.94 5,411,820.70 1,561,839.17 2,621.23 . 22,645.93 10,393.07 27,191. 89 50,167.06 491,795.99 Commissions received Profit o n bills sold P e n a l t i e s for deficient reserves Service charges S u n d r y profits Total. EXPENSE. D i r e c t o r s ' fees, o u t s i d e conferences, a n d F e d e r a l A d v i s o r y Council Salaries Rent Telephone a n d telegraph General expense Cost of. F e d e r a l Reserve n o t e s Assessment for expenses of F e d e r a l R e s e r v e B o a r d 1917 $2,455,532.87 1,843,324.87 378,668.40 66,470.41 14,335.50 38,537.54 8,077.03 18,565.29 80,922.53 24, 779.51 25,314,735.98 i 4,929, 213.95 22,618. 96 1, 298,474. 26 ! • 139,007.62 170,933.02 42,145.52 137,960. 30 33.053.49 99', 439. 80 47,204. 28 35, 294. 48 48,459. 52 20,491.24 121, 779. 43 335,043. 65 18,301.61 398,282.81 55,550.91 329,096.98 343,764.88 100, 876.18 50, 252.09 Total N e t earnings 2,680, 702.68 22,6347033730" 132,058.91 3,733,964.67 Total D e d u c t i o n s D e c e m b e r 31, 1918: A d d i t i o n a l transfer t o d e p r e c i a t i o n reserve a c c o u n t $299,375.00 E s t i m a t e d v a l u e of b u i l d i n g s n o w s t a n d i n g on site, 803,800.00 22, 766,092. 21 3,892,673.44 1,195,249.28 158, 708.77 1,103,175.00 D i v i d e n d s p a i d d u r i n g 1918: J a n . 1 t o J u n e 30 J u l y 1 t o D e c . 31 586,271.98 608,754.22 1.195,026.20 12,795;214.57 7, 672, 676. 44 Reserve for franchise t a x 22, 766,092. 21 Total SCHEDULE 3.—Discount rates. Months. January February... March April 1-5... April 6-30.. May June July August September.. October November.. December.. Open-market Special purchases, secured Special 1-day bankers' by Rediscollatacceptances. Liberty counts eral Trade Agricul15 days bonds or| of notes in accepttural or less 16 to 90 United connec- ances, b a n k e r s ' (includ- days, in- paper, States tion 16 to accepting col- clusive. 91 days certifiwith 90 days. a n c e s , A u t h o r - A c t u a l lateral to 6 cates of ized loans). 1.5-60-90 months. indebt- Governrates. rates. ment days. edness, financ16-90 ing. days. Per cent, Per cent. Per cent, Per cent, Per cent Percent.' Per cent. 4 5 31 3-41 4 4* 4 5 31 3-41 4 41 4 5 31 3-41 4 41 4 4 5 31 3-4| 4 41 5 4 41 42 41 5 4 41 4| 41 5 4 4| 4f 4| 5 4 41 4f 41 5 4 4| 4f 4i 5 4 41 4f 41 5 4 41 4 41 4-1 4| 41 4 4$ 4 4.1 41 4f 41 4 4? 41 4 41 4?, I Per cent. Per cent. 31-41 3-41 3-41 31-41 3-41 31-41 4-41 3-41 4-41 Min. 4 Min. 4 4-4f 4 -4f Min. 4 Min. 4 Min. 4 Min. 4 Min. 4 4-41 Min. 4 4-4| Min. 4 4-4| 4-4VW 13 386 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. SCHEDULE 4.—State banks admitted to system during Admitted to membership, 1918. Bank or trust company. Location. Bloomfield Trust Co Trust Company of Fulton Count v. Hudson Trust Co Lincoln Trust Co Peoples Bank & Trust Co Peoples Bank & Trust Co Farmers Loan & Trust Co February Peoples Trust & Guaranty Co The Bank of Hammondsport Rutherford Trust Co Peoples Trust Co March Commercial Trust Co. of New Jersev Trust Co. of Wyoming County April Olen Ridge'Trust Co Ithaca Trust Co Workers Trust Co Nassau County Trust Co Montclair Trust Co Power City Bank Schenectady Trust Co May Savings Investment <& Trust Co June Fulton Trust Co New Jersey Title Guarantee & Trust Co Montgomery County Trust Co July First State Bank Commercial Exchange Bank Filth Avenue Bank of New York. New Netherland Bank Bank of Suffolk County The County Trust Co August . „ , „ . „ . . . Bank of Amityville Cranford Trust Co Erie County Trust Co Jefferson Trust Co Oyster Bay Bank Mutual Trust Co. of Westchester County Westfield Trust Co September . . . . . Seacoast Trust Co Bayonne Trust Co State Bank of Chatham Herkimer County Trust Co Bank of Millbrook Rockland Countv Trust Co South Norwalk Trust Co The State Bank Bank of Westbury Yorkville Bank October ; . . . . Farmers <fe Merchants Bank Bank of Hicksville Federal Trust Co Columbia Bank Citizens Bank Alliance Bank November Floral Park Bank Morristown Trust Co Mutual Bank , ........ ..... . „ Trust Co. of Orange ... . . . Syracuse Trust Co* Trust & Deposit Co. of Onondaga. Hoboken, N. J New York, N. Y „ Passaic, N. J Westfield, N. J New York, N . Y ... Hackensack, N . J Hammondsport, N. Y . . Rutherford, N. J Binghamton, N . Y Jersey City, N. J . . . Warsaw, N. Y Glen Ridge, N. J Ithaca, N . Y Johnson Citv, N. Y Mineola, N. Y Montclair, N . J Niagara Falls, N. Y . , Schenectadv, N . Y East Orange, N . J New York, N . Y Jersey Citv, N . J Canisteo, N. Y New York, N. Y New York, N. Y New York, N. Y Stony Brook, N. Y White Plains, N. Y Amityville, N . Y Cranford, N. J Hoboken, N. J Oyster Bay, N . Y Port Chester, N . Y Westfield, N . J Bayonne, N. J . . .*. Chatham, N. Y Little Falls, N . Y Millbrook, N. Y. Nyack, N. Y South Norwalk, Conn... Trumansburg, N . Y Westbury, N. Y New York, N . Y Boonton, N . J Hicksville, N . Y Newark, N . J New York, N . Y Perry, N. Y Rochester, N. Y Floral Park, N. Y New York, N . Y Orange, N . J Syracuse, N . Y SCHE DITLE 5.—Foreign branches of American American. Foi*eign Banking Corporation: Branches — Port an Prince, Haiti. Pana ma City, Republic of PanamaL . Crist obal, Canal Zone, Havsina, Cuba. Empire Trus<.Co.: BranchLoneIon,1 England. 1918. Resources. •$3,980,809.35 1,096,337.04 24,834,270.11 22,716,183.28 6,354,359.68 2,206,055.70 195,244, 763.59 6,178,884.38 928 171.87 1,467,624.92' 5,142,020.30 32,340,202.34 752,403.25 1,176,459,86 3,150,215. m 1,923,885.43 2,430,346.92 3,960,638.14 9,365,827.67 6,956,030.22 9,894,876,94 9,268,016.24 16,135,179.24 2,734,794.60 552,322.09 8,920,147.25 25,438,952.05 7,031,510.21 394,929.61 3,043,852.76 599,358.88 1,489,602. 24 1,092,579.59 4,363,259.33 1,270,314.21 2,242,711.20 2,202,034.48 1,978,786.27 4,159,396.89 1,534,480.35 4,660,440.77 677,703.27 2,124,275.39 3,049,727.25 368,934.77 481,839.34 10,885,255.90 480,869.99 986,407.62 9,793,898.23 18,293 353.40 1,330,203.89 15,518,076.66 706,034.53 9,225,186.77 10,872,924.46 957,837.10 17,821,127.40 24,364,091.32 banks, December 31,1918. Equita ible Trust Co.: Br anches—• Paris, 1 France. London,1 England, Farme rs Loan and Trust Co Br anches—• London (2),1 Engiaiid. Paris, 1 France. Bordeaux, Prance. St. Nazaire, France Neuf chateau, Franc se. » Branches established before August, 1914. DISTRICT NO. -NEW YORK. SCHEDULE 5.—Foreign 'brandies of American banks, December Guaranty Trust Co.: Branches—• London, l England. Paris, France. Tours, France. Brussels, Belgium. Buenos Aires, Argentina. International Banking Corporation: Branches— London, 1 England. Yokohama, 1 Japan. Kobe, 1 Japan. Shanghai, 1 China. Pekin, 1 China. Hankow, 1 China. Tientsin, 1 China. Hong Kong, 1 China. Canton, 1 China. Manila, 1 P h i l i p p i n e Islands. Cebu, 1 Philippine Islands. Singapore, 1 Straits Settlements. Batavia, East Indies. Sourabaya, East Indies. Calcutta, 1 India, Bombay, 1 India. Panama, 1 Republic of Panama. Colon, 1 Republic of Panama. Medellin, Colombia. Santo Domingo, Dominican Republic. San Pedro de Macoris, Dominican Republic. Santiago, Dominican Republic. Puerto Plata. Dominican Republic. Mercantile Bank of the Americas (Inc.;: Branches—• Paris, France. Barcelona, Spain. Affiliated I n s t i t u t i o n s American Mercantile Bank of Brazil— Para, Brazil. Pernambuco, Brazil. Banco Mercantile Americana de Caracas*—• Caracas, Venezuela. La Guayra, Venezuela. Banco Mercantile Americano del PeruLima, Peru. 387 31,1918—Continued. Mercantile Bank of the Americas—Con. Affiliated Institutions—Continued. Banco Mercantile Americano del Peru—Continued. Arequipa, Peru. Chiclayo, Peru, Callao, Peru. Banco Mercantile Americano de Colombia— Bogota, Colombia. Barranquilla, Colombia. Cartagena, Colombia. Medellin, Colombia. Cali, Colombia. Manizales, Colombia, Banco Mercantile Americano de Cuba— Havana, Cuba. Mercantile Overseas Corporation—• Guayaquil, Ecuador. Maracaibo, Venezuela. National Bank of N i c a r a g u a Managua, Nicaragua. Bluefields, Nicaragua. Leon, Nicaragua. Granada, Nicaragua. Panama Banking Corporation: Branches: Colon, 1 Republic of Panama. Panama, 1 Republic of Panama. National City Bank: BranchesHavana, 1 Cuba. Cienfuegos, Cuba. Matanzas, Cuba. Santiago, Cuba. Sagua la Grande, Cuba. San Juan, Porto Rico. Caracas, Venezuela. Bahia, Brazil. Rio de Janeiro, Brazil. Sao Paulo, Brazil. Santos, Brazil. Santiago, Chile. Valparaiso, Chile. Buenos Aires, 1 Argentina. Montevideo, Uruguay. Genoa, Italy. Moscow, Russia. Petrograd, Russia. Vladivostok, Russia. t- Branches established before August, 1914. 888 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. SCHEDULE <].—American branches of foreign banks, December 31, 1918. African Banking Corporation: Commercial Bank of Spanish America: New York. 1 New York. 1 Anglo-South American Bank ( L t d . ) : San Francisco. Credito Italiano: New York. 1 Banca Commerciale Italiana: New York (agency). Hongkong & Shanghai Banking CorporaNew York. tion: Banca di Napoli: New York. 1 New York. 1 San Francisco. 1 Chicago. London & Brazilian Bank (Ltd.): Banco Nacional de Cuba: New York. 1 New York. 1 London & River Plate Bank (Ltd.): Bank of Montreal: New York. 1 New York. 1 Merchants Bank of Canada: San Francisco. 1 New York. 1 Chicago. 1 National Bank of Santo Domingo: Spokane. New York. 1 Bank of Nova Scotia: National Bank of India: New York. 1 New York. 1 Boston. 1 National Bank of South Africa: Chicago. 1 New York. Bank of British West Africa (Ltd.): Philippine National Bank: New York. New York. Bank of Taiwan (Ltd.): Royal Bank of Canada: New York (agency). New York. 1 Banque Beige Pour 1'Etranger: Standard Bank of South Africa (Ltd.): New York. New York. 1 Banque Nationale de la R e p u b l i q u e Sumitomo Bank (Ltd.): d'Haiti: San Francisco. New York. Seattle. Canadian Bank of Commerce: New York (agency). New York. 1 Union Bank of Canada: Portland, Or eg. 1 New York. 1 San Francisco. 1 Yokohama Specie Bank ( L t d . ) : Seattle, Wash. 1 San Francisco. 1 Chartered Bank of India, Australia, and Seattle. China: Los Angeles. 1 New York. 1 New York. 1 Colonial Bank of London: 1 New York. »Branches established before August, 1914. 389 DISTRICT NO. 2 — N E W YORK. SCHEDULE 7.—Employees of the banh. Men. Women. Total, 1918. Total, 1917. BANK DEPARTMENTS. Accounting and reconciling.. Accounting reference files... Adjustment Architectural Auditing Bookkeeping Cafeteria Chief clerk City collection Code Complaint and fraud Comptroller Country collection Coupon collection Credit Custody Discount Distributing Employment Federal Reserve a g e n t . . . . . . Filing and library Float force Foreign exchange Gold shipments Mail—officers' Mail—outgoing Mail teller—day Mail teller—night Miscellaneous Money Money shipments Note teller Officers' assistants Pages Paying teller Porters Protection Protection—night Purchasing Receiving teller Reserve penalties Return items Secretaries Signatures Special statements Stenographers Supply Telegraph Telephone Transit—day Transit (5 p . m. to 12 p. m.).. Transit (12 p. m. to & a. m.). Vault Warehouse Welfare Wire transfer 12 20 19 2 106 41 26 8 35 2 35 7 0 3 11 3 21 21 15 3 3 3 8 1: 1 39 0 2 2 2 4 24 2 2 12 308 63 32 10 3? 4 4 11 3 21 21 15 8 9 2 17 25 20 9 1 10 26 4 4 12 340 75 3? 4 4 11 17 3 3 Total. 1, 350 GOVERNMENT DEPARTMENTS. Bond issue and exchange... Capital issues committee Coupon payment Custody Government check Government deposit Certificate of indebtedness: Clerical Sales Total. 115 4 i 4 j 40 I 31 i 44 i 105 1 19 2 11 19 38 4 ! 280 192 33 36 45 53 103 28 63 272 77 98 270 1,135 538 1,495 LIBERTY LOAN ORGANIZATION. Administration Distribution Partial payment—third.. Partial pavment—fourth. Publicity Total Grand total. 23 2 6 167 2 390 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. SCHEDULE 8.—Certificates of D a t e of issue. Loan. Maturity date, indebtedness. Rate. Per Jan. .Tan. Feb. Fob. Feb. Mar. Mar. Apr. Apr. Apr. May June July July Aug. Aug. SeptSept. Oct. Nov. Doc. Dec. Third., Third. Third.". Third. Third".. Third. Fourth Fourth Fourth Fourth Fourth" Fourth Fourth Fifth."! Fifth.. 1 T a x certificates. 2,1918 22,1918 8,1918 15,1918 27,1918 20,1918 15,1918 10,1918 22,1918 15,1918 15,1918 25; 1918 9,1918 23,1918 6,1918 20,1918 3,1918 17,1918 1,1918 7,1918 5,1918 19,1918 J u n e 25, 1918 A p r . 22, 1918 M a y 9, 1918 J u n e 25, 1918 M a y 28, 1918 J u n e 18, 1918 J u n o 25, 1918 J u l y 9, 1918 J u l y 18, 1918 J u n e 25, 1918 do... O c t . 24, 1918 N o v . 7, 1918 N o v . 21, 1918 D e c . 5, 1918 J u l y 15, 1919 J a n . 2, 1919 J a n . 16, 1919 J a n . 30, 1919 M a r . 15, 1919 M a y 6, 1919 J u n e 20, 1919 ..... 2 S u b s c r i p t i o n of ,$230,017,000. SCHEDULE 9.—Liberty loan THIRD cent. 14 4 4 14 *h 44 14 U *k i 4 i 4 4-i 4i H•H 14 4* 4-1 U *4£ 4| 41 T o t a l sale. T o t a l allotm e n t , second district. $491,822,500 400,000,000 500,000,000 74,100,000 500,000,000 543,032,500 110,962,000 551,226,500 517,826,500 71,880,000 183,767,000 839,646,500 753,938,000 584,750,500 575,706; 500 157,552,500 639,493,000 625,216.500 641,069,000 794,172,500 613,438,000 572,494,000 $239, 954,000 2 209, 685,000 241, 322,000 14: 007,500 3 172, 666,500 193 700,500 io; 252,500 215, 448,000 222, 486,000 12, 000,500 61, 188,000 312, 844,500 273 219,500 211, 714,000 207, 287.000 44, 766; 000 210, 068,500 216i 264,500 249. 591,000 350; 847,500 222; 830,000 199, 117,000 10,742,094,000 1,091,260,000 * S u b s c r i p t i o n of $197,715,000. subscriptions. LOAN. N u m b e r of A m o u n t of subscriptions. subscribers. Class. $50.. $100 $150 t o $450 $500 $550 t o $950 $1*050 to"$4,*950V.-."." $5,000 $5,050 t o $9,950 $10,000 $10,050 t o $50,000.. $50,050 t o $100,000. $100,050 t o $200,000, O v e r $200,000 Total $96,284,350 57,711,700 69,651,100 46,789,500 3,072,300 106,447,000 35,509,650 38,175,000 9,533,050 60,060,000 127,456,850 68,557.600 '50,145,050 345,850,500 1,925,687 577,117 298,921 93,579 4,417 106,447 15,800 7,635 1,371 6,006 4,628 763 322 430 1,115,243,650 3,043,123 $113,958,250 88,741.300 33,005; 800 43,682,000 9,733,100 118,376,000 81,242,250 68,225,000 32,927,400 104,830,000 279,570,800 156,613,950 145,827,950 768,167,950 2,279,165 '887,413 138,509 87,364 14,483 118,376 35,570 13,645 4,710 10,483 10,596 1,886 933 967 FOURTJrl L O A N . $50 $100 $150 to $450 $500 $550 to $950 $1,000 $1,050 to $4,950 $5,000.' $5,050 to $9,950 $10,000 $10,050 to $50,000.. $50,050 to $100,000. $100,050 to $200,000 Over $200,000 Total 2,044,901,750 2,069,806.17 DISTRICT NO. 2 391 N E W YORK. SCHEDULE 10,—Ratio of subscriptions received, third and fourth loans. THIRD LOAN. Class of b a n k . Number Number in second s u b s c r i b district. A m o u n t of subscriptions. Ter c e n t of t o t a l subscription. 624 228 193 105 $541,400,250 147,024,900 393,092,200 21,990,850 11,735,450 48.6 13.2 35. 2 2.0 1.0 1,115,243,650 100.0 $962,662,650 272,686,300 759,660,100 26,440,250 23,452,450 47.1 13.3 37.2 1.3 1.1 2,044,901,750 100.0 625 229 202 178 National banks State banks , Trust companies Savings b a n k s I n d i v i d u a l s ( i n c l u d i n g foreign a n d p r i v a t e b a n k e r s ) . Total.. Q u o t a , $900,000,000. FOURTH National banks State banks Trust companies LOAN. 622 228 196 89 625 229 202 178 ,. '. Individuals (including foreign and private bankers). Total | Q u o t a , $1,800,000,000. SCHEDULE 11.—Subscriptions, third and fourth loans, by geographic THIRD Division. subdivisions. LOAN. Quota. A m o u n t of subscriptions. N u m b e r of subscrib ers. Average size. Subscriptions per capita. $56.51 S u b d i s t r i c t N o . 1 (Buffalo a n d v i c i n i t y ) . . S u b d i s t r i c t N o . 2 ( R o c h e s t e r a n d vicinity) Subdistrict N o . 3 (Utica a n d Syracuse and vicinity) S u b d i s t r i c t N o . 4 ( B i n g h a m t o n a n d vicinity) Subdistrict No. 5 (Albany a n d Troy and vicinity) Subdistrict No. 6 (Long Island).. Subdistrict No. 7 (Northern New Jersey). Subdistrict No. 8'(Westchester Countv, N . Y . , a n d Fairfield C o u n t y , C o n n . ) * . . $43,626,500 $57,525,500 286,426 $201 20,969,400 24,777,450 115,090 215 41.74 29,071,800 35,669,550 183,152 194 41.66 9,449,900 13,248,550 74,474 178 33. 53 34,691,000 10,872,100 71,925,000 48,346,150 12,527,500 114,867,200 201,346 50,966 495,041 240 245 232 40. 69 38. 98 52.14 17,666,300 34,539,850 181,750 190 56.25 T o t a l outside of Greater N e w Y o r k . 238,272,000 341,500,750 1,588,245 215 48.18 618,794,000 39,616,900 3,317,100 1,032,900 4,364,400 701,167,700 53,001,950 5,361,150 3,386,800 10,825,300 1,248,327 116,855 24,417 19,262 47,493 561 453 219 176 228 276.42 29. 46 8.70 34. 33 27.29 531 Manhattan.. Brooklyn Bronx R i c h m o n d *. Queens1 T o t a l , Greater N e w Y o r k . 661,728,000 773,742,900 1,456,354 T o t a l for t h e d i s t r i c t 900,000,000 1,115,243,650 3,044,599 * P a r t s of, b u t n o t i n c l u d e d in figures for s u b d i s t r i c t N o . 6. 88.98 392 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. SCHEDULE 11.—Subscriptions, third and fourth loans, by geographic subdivisions—-Gon. F O U R T H LOAN. Quota. Division. Number of Average SubscripAmount of tions per subscriptions. subscribsize. ers. capita. _L $87,253,400 $95,231,250 324,310 $293 $93.55 42,214,800 45,628,100 191,997 237 76.87 58,143,600 63,054,850 219,833 286 73.64 18,900,000 22,225,900 100,851 220 56.25 69,382,000 10,841,400 143,850,000 35,332,400 77,653,100 19,228,950 199,131,150 345 309 327 65.36 86.94 90.39 53,029,700 224,847 62,077 607,089 215,310 246 86.37 465,917,600 575,183,000 1,946,314 295 81.14 1,236,605,800 79,233,800 6,634,200 2,173,900 9, 434,700 1,339,841,950 101,032,950 5,812,300 5,109,650 17,951,900 1,168,270 290,453 34,140 33,660 131,263 1,146 347 170 152 136 528.17 56.17 9.44 51.80 45.25 Total, Creater Now York. 1,334,082,400 1,469,748,150 1,657,786 886 269.86 Total for the district 1,800,000,000 2,044,901,750 3,604,100 567 163.14 Subdistrict No. 1 (Buffalo and vicinity). Subdistrict No. 2 (Rochester and vicinity) Subdistrict No. 3 (Utica and Syracuse and vicinity) Subdistrict No. 4 (Binghamton and vicinity) Subdistrict No. 5 (Albany and Troy and vicinity) Subdistrict No. 6 (Long Island) Subdistrict No. 7 (Northern New Jersey). Subdistrict No. 8 (Westchester County, N. Y., and Fairfield County, Conn.)... Total outside of Greater New York. Manhattan. Brooklyn... Bronx. 1 Richmond . Queens 1 1 Parts of, but not included in figures for subdistrict No. 6, SCHEDULE 12.—Expenses of third and fourth Liberty loans to December 31, 1918. T H I R D LOAN. Fiscal agency organization. E x p e n s e classification. Bond issue. Certificates of indebtedness. Government deposit. L i b e r t y loan o r g a n i z a t i o n . Distribution. Publicity. Administration. $144,649.81 $41,476.45 $53,031.35 $396,974.97 $225,401. 28 $25,159. 65 Salaries, regular 50,799.10 8,202.31 7,226.29 13,833. 52 5,560.62 2,284. 64 Salaries, o v e r t i m e — Printing, stationery, 4,138. 73 16,331.22 24,365.57 2,391.77 189,640.02 a n d forms " . . 15,017.47 Printingcirculars and 83,302.32 143,270.82 descriptive m a t t e r . 2,050.00 756.58 9,859. 80 491.62 45,677.08 Traveling expenses.. 1,106.54 2.40 20,485.22 24.14 Telephone a n d tele17,009.65 792.11 8,357. 85 747. 55 graph 2,964.56 1,627.75 247. 88 8,239.03 14,030.73 2,984.47 Expressage 22.26 4,542.26 71.08 357.06 Postage 6,560. 38 8.77 10.00 40,871.03 2,013.19 18,226.33 8,372. 75 Equipment 4,038.25 23,736. 48 Rent 42,628.30 3,172.33 8,774. 74 10,778. 60 2,585.13 12,687.43 Newspapers a n d di1.50 276. 50 103. 65 3,533.11 7.00 rectories Bands, music, and speeches 18,932.63 21,617.83 Banners, booths, and signs 34,993.31 75,781. 86 174. 25 31,250.95 17,017.01 11,359.12 Miscellaneou-bSupphes 11,705. 31 1,648.32 395. 42 70,708.28 57,750. 74 34,534. 56 General p l a n t service 1,113.67 1,331.45 810. 24 Total 286,680.41 63,197.94 70,499.05 1,035,845.43 621,553.14 Total. $m, 693. 51 87,906.48 251,884.78 239,731.14 67,295.38 31,499.47 25,524.37 11.549.55 97,258.03 80,626.53 3,921.76 40,550.46 110,949.42 73,376.13 166,248.94 97,239. 98 2,175,015.95 DISTRICT ^ 0 . 2 — N E W 393 YORK. SCHEDULE 12.—Expenses of third and fourth Liberty loans to December 31, 1918— Continued. FOURTH LOAN. Fiscal agency organization. E x p e n s e classification. Bond issue. Certificates of indebtedness. L i b e r t y loan organization. Government deposit. D i s t r i b u - i Public-it v. tion. Administration. Total. $107, 606. 02 $41,746.17 $34,033.57 $217,384.11 $246,655. 45 $37,626.24 Salaries, regular 15, 386.39 Salaries, o v e r t i m e 5,925. 51 41,085.07 1,630.66 4,396.89 31,576.62 Printing, stationery, a n d forms 3,758.39 27,865. 34 14,424. 71 3,163.26 272,667.06 P r i n t i n g circulars a n d 536. 73 descriptive m a t t e r . 4,380.09 135.00 41,188.24 235,983.61 2,480. S3 11.30 Traveling e x p e n s e s . . 37,744.19 20; 432. 59 97.91 Telephone a n d tele18.28 graph 197. 77 12,215.25 1,060.14 1,851.27 204. 66 Expressage 19,619.16 7,882. 60 .61 4,233. 39 i, 023.17 Postage 347. 59 50,521.34 171. 50 \, 713. 94 Equipment 2,230. 73 654. 00 21,347.91 7,374. 50 51,188. 65 Rent ', 021. 32 1,801.64 3,155. 65 1.248.34 14,808. 59 33,604.74 N e w s p a p e r s a n d directories 3.78 13.65 1,150.12 3,170. 67 Bands, music, and speeches 51,347.01 95,048.35 Banners, booths, and signs 35.00 267. 72 68,294.56 48,616.07 Miscellaneous supplies 262. 76 388. 69" 90.07 9,892.19 7,210. 36 8,440.52 035.46 General p l a n t service 1,215.44 168.91 36,084. 45 1,416. 85 12,133. 52 Total 162,868.11 61.732.68 41,138.07 912,571. 09 SCHEDULE 13.—Capital account reconciliation, $685,051.56 100,001.14 332,926. 84 284,704. 50 58,285. 99 15,342.71 31,940. 42 56,063. 60 91,509. 73 61,640.28 4,391.47 146,395.36 117,213.35 29,284.59 55,054.63 806,784.62 | 84,711.60 2,069,806.17 Jan. 1 to Dec. 31, 1918. C a p i t a l paid in J a n . 1, 1918 S u n d r y increases: D u e t o increase of c a p i t a l a n d s u r p l u s of m e m b e r b a n k s D u e t o organization of n e w n a t i o n a l b a n k s D u e t o a d m i s s i o n of S t 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 $18,684,850 $1,221,850 1,350 1,071,350 __ 2,294,550 20,979,400 S u n d r y decreases: D u e t o decrease in c a p i t a l a n d s u r p l u s of m e m b e r b a n k s . . Due to banks liquidated 300 174,000 P a i d i n c a p i t a l D e c . 31, 1918 20,805,100 SCHEDULE 14.—Summary of Federal Reserve notes. T o t a l issued t o b a n k : 1914, 1915, 1916, 1917 1918 Less n o t e s unfit for circulation r e t i r e d 1914, 1915, 1916, 1917 Less n o t e s unfit for circulation r e t i r e d 1918 $601,513,000 589,400,000 J 1,190,913,000 $145,174,435 226,722,730 A m o u n t o u t s t a n d i n g D e c . 31, 1918.. A s follows: I n a c t u a l circulation H e l d b y F e d e r a l R e s e r v e B a n k Dec. 31, 1918. 371,897,165 819,015,835 729,824,330 89,191,505 819,015,835 O n Dec. 31, 1918, t h e F e d e r a l R e s e r v e a g e n t h e l d a g a i n s t F e d e r a l R e s e r v e n o t e s : Gold certificates Commercial p a p e r Total 274,392,165.00 774,918,088. 63 1,049,310,253.63 394 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD. SCHEDULE 15.—Total of Federal Reserve notes paid out by the Federal Reserve Bank of New York, by months, 191S. To member banks. January February March..". April May June July August September October November December To nonmember banks. $41, 763,000 61, 278,000 69, 386,000 67, 543,000 55, 262,000 418,000 92^ 593,000 89, 244,000 88, 573,000 86, 1.50,000 73, 627,000 104, 185,000 $3, 129,000 2, 022,000 2, 605,000 2, 342,000 1,"76,000 2, 983,000 1,413,000 755,000 1 019,000 203,000 1, 1 547,000 352,000 2, Total paid to nonmember banks 907,022,000 23,146,000 23,146,000 Total received from Federal Reserve agent 930,168,000 539,400,000 SCHEDULE 16.—Movement of Federal Reserve notes between Federal Reserve Bank New York and other Federal Reserve Banks, Jan. 1 to Dec. SI, 1918. Atlanta Boston Total T o F e d e r a l R e s e r v e B a n k of— $6,165.750 Atlanta 28,023,300 11,226,000 Chicago 9,517,450 Cleveland 2,989.850 Dallas 691,050 | K a n s a s City 1,001,300 Minneapolis 43,178,000 ' P h i l a d e l p h i a 9,742,900 Richmond 4,274,050 S t . Louis 1,240,820 San Francisco Boston Philadelphia Cleveland Richmond Atlanta Chicago S t . Louis Minneapolis Kansas City Dallas San Francisco T r e a s u r e r of U n i t e d S t a t e s Total Gain... $9,300,050 16,415,400 14,085,9,50 13.639,700 1,977,800 3,406,000 2,312,750 31,085,350 17,519,100 3,013,150 5,873,950 118,050,470 118,629,200 SCHEDULE 17.—Summary of gold settlement fund F r o m or t o F e d e r a l R e s e r v e B a n k of— !m F r o m Federal R e s e r v e B a n k of— N o t e s of Federal Reserve B a n k of New York received. of operations, Jan. 1 to Dec. SI, 1918. A m o u n t s received a n d p a i d b y t h e New York Federal Reserve Bank i n s e t t l e m e n t of a c c o u n t s d u e . R eeeived. Paid. $2,053,341,793.38 3,120,296,067.46 2,170,184,540.50 1,221,227,2&3.37 501,450,567.96 2,700,218,462.26 791,185,425.53 631,171,389.45 763,295,709.41 433,858,198.13 1,180,968,773.34 172,000,000.00 159,058,000.00 $2,077,384,815.43 2,981,806; 142.38 1,836,466,723.75 1,364,498,260.70 752,163,009.71 3,248,800,605.65 582,125,736.40 725,818,906.49 594.527,787.62 448,527,571.69 1,071,180,195.15 101,000,000.00 53,020,000.00 10,498,256,210.79 16,437,319,755.03 60,936,455.76 N e t gain. $138,489,925.08 333,717,816.75 N e t loss. $24,043,022.05 143,270,977. 33 250,712,441.75 548,582,143.39 209,059,689.07 94,647,517.04 108,767,921.79 14,669,373.56 109,788,578.19 71,000,000.00 106,038,000.00 1,136,801,930.88 1,075,925,475.12 60,936,455.76 DISTRICT >70. 2 — N E W YORK. 395 SCHEDULE 18.—Fiduciary powers granted national banks during 1918 in Second District, by Federal Reserve Board. Powers granted—Trustee, executor, administrator, registrar of stocks and guardian of estates, assignee, receiver, committee of estates of lunatics: Asbury Park, .N. J., Merchants National Bank. Morristown, N. J., National Iron Bank. Paterson, N . J., Second National Bank. Phillipsburg, N . J., Phillipsburg National Bank. Albany, N . Y., National Commercial Bank. Buffalo, N . Y., Manufacturers & Traders National B a n k . Canandaigua, N . Y., Canandaigua National Bank. Canton, N . Y., St. Lawrence County National Bank. Catskill, N . Y., Catskill National Bank. Cooperstown, N . Y., Second National Bank. Dunkirk, N . Y., Lake Shore National Bank. Elmira, N. Y., Second National Bank. Geneva, N . Y., First National Bank. Glens Falls, N . Y., Merchants National Bank. Hudson, N . Y., First National Bank. Jamestown, N . Y., National Chautauqua County Bank. Lockport, N. Y., Niagara County National Bank. New York, N . Y., American Exchange National Bank. New York, N . Y., Atlantic National Bank. New York, N . Y., Chemical National Bank. New York, N . Y., Citizens National Bank. New York, N. Y., First National Bank. New York, N. Y., Hanover National Bank. New York, N. Y., Irving National Bank. New York, N. Y., Lincoln National Bank. New York, N. Y., Mechanics & Metals National Bank. New York, N. Y., National Park Bank. Nyack, N. Y., Nyack National Bank. Oneonta, N. Y., Citizens National Bank. Utica, N . Y., L^tica City National Bank. Watertown, N. Y., Watertown National Bank. Powers granted—Trustee, executor, administrator, registrar of: stocks and guardian of estates, receiver: Bridgeport, Conn., City National Bank. Powers granted—Trustee, executor, administrator, registrar of stocks and guardian of estates, assignee, receiver: Elmira, N. Y., Merchants National Bank. Powers granted—Trustee, executor, administrator, registrar of stocks and guardian of estates, receiver: Greenwich, Conn., Greenwich National Bank. Powers granted—Trustee, registrar of stocks and bonds: Frenchtown, N. J., Union National Bank. Powers granted—Registrar of stocks and bonds: Paterson, N . J., First National Bank. bonds, bonds, bonds, bonds, 396 SCHEDULE ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 19.- -Honor roll of employees in the military or naval service of the United States. Name. Aiiken, Harold R Anderson, Harry A Anderson, William C Bedell, Henry M Behan, William F Berger, Harry A Black, Norman P Blackford, Eugene G Blackmail, Harry II., jr. Blumberg, Leo Bowen, Harold J Brennan, Thomas S Byrne, Edmund J Cameron, Donald J Carey, Jack H Carnahan, Robert S. Cokelet, William Van Conover, William H Cook, James R Curtis, Frank M Cuyler, Theodore L Daekerman, Frank Dencker, Rudolph R Denny, Daniel Donaldson, Guy Doyle, Frank P Drew, Earl Dunn, John A Duvall, Steele Ehm, William A Ermete, Martin C Ernest, Frank, jr Farrell, Frank Felton, William Ferens, Albert W Flanagan, James K Fleming, John .' Foulon, Clement Furnala, George Gardner, Douglas F Ghia, Arthur Gilchrist, William J Gleason, Parker A Goddard, L. W Gorman, Wilbur B Griffis, Frederick Griffiths, Wilbur C Guy, Earl Hamilton, Charles C Hannett, Arthur Hanson, Michael A Hart, Widiam Haviland, Roger M Helfrich, Henry W. A Henry, Thomas Hughes, George Y Jacobus, Joseph L O'Grady, Robert Lange, William Steiger, Geo Jeanson, Adolf Johnson, Frank Judge, Joseph A Judson, Henry Keeler, Charles J Keyes, Howard E Klauser, Joseph Klein, Ralph Kniffin, Frederick Lackaye, George J Langan, William, jr Leger, Louis Wm Leonard, William J Lewis, Conrad B I^ewis, Donald J Lewis, Ernest E Lord, Lyman C , jr Lowell, Charles 'MrCnrminlr flanrcra T Branch of service. Apr. C>, 1918 May 10, 1918 Mar. 9, 1918 Apr. 5, 1918 Mar. 1, 1918 Aug. 15, 1918 Apr. 5, 1918 Jan. 15, 1918 Dec. 15, 1917 Sept. 21, 1918 Apr. 13, 1918 Apr. 23, 1918 Apr. 12, 1918 Aug. 31, 1918 July 15, 1918 Sept. 14, 1918 May 25, 1918 , June 22, 1918 July 19, 1918 Sept. 4, 1918 Dec. 15, 1917 Aug. 9, 1918 Aug. 3, 1918 May 24, 1918 Dec. 15, 1917 July 20, 1918 May 1, 1918 Apr. 27, 1918 Apr. 23, 1918 July 16, 1917 Sept. 28, 1918 Sept. 15. 1918 May 23, 1918 Mar. 1, 1918 June 30, 1918 Oct. 15, 1918 Mar. 19, 1918 July 27, 1918 Sept. 1, 1918 May 22, 1918 July 27, 1918 July 15, 1918 June 0, 1918 Oct. 1, 1918 Aug. 3, 1918 Nov. 30, 1917 May 5, 1918 Dec. 31, 1917 July 12, 1918 Aug. 31, 1918 June, 1917 Nov. 30, 1917 Dec. 15, 1917 July 15, 1918 Sept. 4, 1918 Dec. 8, 1917 Sept. 3, 1918 Aug. 15, 1918 Sept. 23, 1918 July 31, 1918 July 24, 1918 May 20, 1918 Oct. 31, 1918 Aug. 24, 1918 Nov. 15, 1917 Nov. 4, 1918 Sept. 4, 1918 Mar. 31, 1918 Mar. 26, 1918 June 22, 1918 July 10, 1918 Apr. 30, 1918 July 27, 1918 Dec. 15, 1917 Marines. Navy. Army. Naval Reserve. Do. Signal Corps. Army. Do. Do. Student Army Training Corps, Harvard. Navy. Army. Do. Canadian Royal Flying Corps. Student Army Training Corps, Columbia. Army. Do. Do. Do. Navy. Do. Signal Corps. Army. Navy. Army. Do. Do. Do. National Guard. Student Army Training Corps, St. John's, Naval Reserve. Army. Do. Do. Do. Navv. Do. Merchant Marine. Army. Do. Do. Naval Reserve. Navy. Naval Reserve. Royal Flying Corps. Army. Do. Navv. Do. Do. Army. Navy. National Guard. Army. Navy. Army. Student Army Training Corps. Merchant Marine. Army. Do. Student Army Training Corps. Army. Navy. Army. Do! Do. Do. Navy. Army. Navy. do... Do*. Sept. 1, 1918 Merchant Marine. M a y 23, 1918 Army. Nov. 21,1917 Navy. TW 1 1Q17 Armv DISTRICT NO. 2 — N E W YORK. SCHEDULE 19.— Jlmior roll of employees in the military States—Continued. Name. Entered service. Marcus, Warren, jr Markert, Russell E Mellor, Walter Mcyran, George D., j r — Miller, Edward A Moore, W. B. J Muller, Carl North, James C , Pannick, Frank, jr Peper, John L Prescott, Harvey B Pronek, Lawrence J Quirk, William A Reinbrecht, Downing A. Ross, Irwin G Schultz, George W Schwartz, Roland J Scott, Joseph D Seifert, Louis J Senior, Charles, jr Simpson, James L Somers, Sutphen M Stiess, Henry F Suker, George Tomkins, Edward J Weaver, Luther O Wiese, Rudolph E Wightman, Walter H . . . Wills, Ralph G Winget, Clifford Wise, John B Wonsor, Edward York, Clarence S Dec. 10,1917 Mar. 15,1918 Nov. 30, 1917 Nov. 23,1917 Apr. 30,1916 July 15,1917 Mar. 14,1918 June 15,1918 Mar. 2,1918 Sept. 15,1918 Dec. 31,1917 Oct. 24,1918 Sept. 21,1917 Dec. 1,1917 Sept. 30,1918 May 1917 Sept. 7,1918 June 3,1918 Mav 23,1918 Sept. 15,1917 Feb. 27,1918 June 2,1918 May 21,1918 Sept. 1,1918 Nov. 24,1917 June 1916 Dec. 15,1916 May 15,1918 Julv 27,1918 July 21,1917 Oct. 1,1918 Dec. 28,1917 July 20,1918 397 or naval service of the United Branch of service. Do. Do. Navv. Army. Do. National Guard. Army. Navy. Army. Student Army Training Corps, Columbia. Navy. Army. Do. Do. Do. Navy. Army. Navy. Armv. Do. Do. Naval Reserve. Armv. Do. Do. Navy. Army. Marines. Navy. New Jersey National Guard. Navy. Do. Army. Two of those named above died in the performance of their duty. William Fraser Behan, a cadet flyer, in training a t B a y Shore, Long Island, was killed in the fall of a hydroplane, and Luther Oberlin Weaver was among those lost with the United States patrol boat AlcedOj which was sunk by an enemy submarine. SCHEDULE 20.—Schedule showing when the proceeds of items tcill become available. I m m e d i a t e credit: New York (Manhattan); when received b y 9. a. m . One day after receipt: jBaltimore. Boston. ^Pittsburgh. Philadelphia. Richmond. Roanoke, Va. (see par list). Two days after receipt: Cleveland, t Cincinnati. Chicago. fDetroit. Atlanta. Minneapolis. St. Paul. St. Louis. Kansas City, Mo. Kansas City, K a n s . fLouisville. j Branch banks. Bants i n Connecticut, Delaware. District of Columbia. Maine. ^Maryland. ^Massachusetts. New Hampshire. New Jersey. *New York. "^Pennsylvania. R h o d e Island. Vermont. ^Virginia. * Except barks in cities referred to in first column. 398 A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD, Four days after receipt: Dallas. fNew Orleans. fDenver. fOmaha. f Spokane. fSalt Lake City, fPortland, Oreg. fSeattle. San Francisco. Alabama. Arkansas. Florida. •Georgia. •Illinois. Indiana. Iowa. •Kansas. •Kentucky. •Michigan. Banks in- •Minnesota. Mississippi. •Missouri. North Carolina. •Ohio. South Carolina. Tennessee. West Virginia. Wisconsin. Eight days after receipt: Banks i n - Arizona. •California. •Colorado. Idalio. •Louisiana. Montana. •Nebraska. Nevada. New Mexico. f Branch banks. North Dakota. Oklahoma. ^Oregon. South Dakota. •Texas. •Utah. •Washington. Wyoming. " Except banks in cities referred to in first column. NOTE.—Two day items we forward on Saturday will be available Tuesday. Four day items we forward Thursday will be available Tuesday and those forwarded Friday and Saturday on Wednesday. To obtain quickest availability of funds, sort and list checks in accordance with above time schedule, with a separate cash letter for each separate time group. Banks desiring to send checks direct to other Reserve Banks or their branches will please secure from us the circulars showing the territory handled by the branches. JUNE 1,1918. DISTRICT NO. 3—PHILADELPHIA. R. L. AUSTIN, Chairman and Federal Reserve Agent. INTRODUCTION. The report of the Federal Reserve Bank of Philadelphia for the year 1918 shows a great increase in operations over the previous year, and reflects the effect of the war on financial operations. The ease with which this district absorbed its allotments of the great Government loans and financed the industries engaged in war work, was due to the greater availability of the credit resources of the country made effective through the Federal Reserve system. The banks of the district cooperated with the Government in its financing of the war to the fullest extent possible by loaning freely to subscribers to Liberty bonds, which they were able to do through the rediscounting facilities of the Federal Reserve Bank. RESULTS OF OPERATION. A comparative statement of the condition of the Federal Reserve Bank of Philadelphia is given in the appendix of this report (Schedule 1). The resources of the bank more than doubled during the year and are eight times greater than the figures for the close of 1916. On December 31, 1914, less than two months after the bank opened for business, the resources amounted to $21,501,000. Compared with December 31, 1917, figures at the end of 1918 indicate an increase of $12,068,480 in the gold holdings and an increase of $144,544,990 in the amount of Federal Reserve notes in circulation. The work of gathering in the gold in circulation throughout the district, which had been begun in the previous year, was continued, and the increase noted above is due largely to this work. The paid-in capital increased $1,420,300 during the year. This was brought about principally by the admission of State banks and trust companies, having combined capital and surplus of $38,812,917. The item "Federal Reserve bank notes 7 ' appears in the statement for the first time. Further reference to it is made hereinafter. Net earnings reached the large amount of $3,270,824, or 46 per cent on the average paid-in capital stock for the year. After payment of 399 400 ANNUAL REPOBT OF THE FEDERAL RESERVE BOARD. dividends of $366,383.14 covering the period from July 1, 1917, to J u n e 30, 1918, and $216,825.56 covering the period from July 1, 1918, to December 31, 1918, there remained in the profit and loss account $2,608,343.91, one-half of which was placed to surplus account, the remainder, under the terms of the act, going to the Government as a franchise tax. Schedules 2, 3, and 4 show profit and loss statement, monthly statement of earnings and expenses, and chart of earnings and expenses. RESERVE POSITION. While deposit liabilities of the bank have remained fairly steady, liabilities for Federal Reserve notes have increased from $97,325,755 to $241,870,745. The percentage of reserve against combined liabilities fell from 68.7 at the beginning of the year to 44.6 at the close. The lowest £oint reached was 39.6 per cent on November 22. During November and December, owing to continued demands for funds and the consequent decline in reserve, the bank found it necessary to strengthen its reserve position by rediscounting with other Federal Reserve Banks. A chart showing the reserve position of the bank, and a table of its liabilities and reserve percentages, are given in the appendix of this report (Schedules 5 and 6). DISCOUNT RATES. The only changes in the discount rates during the year were made on April 8, when the 15-day rate for paper secured by Government obligations was increased from 3 | to 4 per cent; the 16 to 90 day rate for such paper from 4 to 4} per cent; the 16 to 90 day rate for commercial paper from 4J to 4f per cent; and the 16 to 90 day rate for trade acceptances from 4 to \ \ per cent. I t was considered inadvisable to increase further the discount rates, notwithstanding the heavy borrowings by member banks, resulting from the large subscriptions to Liberty bonds and United States certificates of indebtedness. Changes in discount rates during calendar ygar 1918. Rate in effectJan. 1, 1918. Discounts maturing within 15 days, including member banks' collateral notes Paper, including member banks' collateral notes, secured by United States certificates of indebtedness, or Liberty loan bonds maturing within 15 days Paper maturing within 16 to 90 days Paper secured by United States certificates of indebtedness or Liberty loan bonds maturing within 16 to 90 days Agricultural and live-stock paper maturing after 90 days Trade acceptances maturing from 1 to 15 days Trade acceptances maturing from 16 to 90 days Bankers' acceptances purchased at the market rate, subject to agreement. Apr. 8, 1918. Jan 1, 1919. 4 4| 5 4 4i DISTRICT NO. 3—PHILADELPHIA. 401 INVESTMENTS. The discount facilities of the bank were used extensively, loans increasing continually throughout the year. Total operations, exclusive of purchases of Government securities, amounted to $1,977,660,746, of which 77 per cent represented paper secured by obligations of the Government. The largest amount of borrowing at any one period occurred in connection with the issue of the fourth Liberty loan, earning assets increasing from $118,694,530 on September 28, the opening date of the campaign, to $209,449,707 on December 3. There were practically no dealings in municipal warrants throughout the year. Of the 660 member banks in the district, 457, located in 355 cities and towns, borrowed from the bank during the year. The heaviest transactions occurred on November 7, when total loan and investment operations amounted to $39,135,472. Total earnings from investments amounted to $4,230,955, compared with $987,057 the preceding year. The average rate of return from all classes of investments was 4.19 per cent, compared with 3.32 per cent in 1917, and 2.42 per cent in 1916. A chart showing discount operations, and tables showing total operations, aveiage holdings, earnings, and rate of earnings are given in the appendix of this report (Schedules 7 to 11). The maturities of the bank's earning assets on the last Friday of the year are shown in Schedule 12. I t is difficult to estimate the probable time in which members can clear up all their " war paper" at the Reserve Bank. Not very much progress can be made until the Government has completed its war financing. If prior to the next bond issue considerable liquidation in business should take place, it would release funds for investment in United States certificates of indebtedness and possibly prevent material increase in the loans of the bank. In pursuance of the policy of banking institutions, loans not essential to the prosecution of the war were very largely curtailed, while loans for war purposes were greatly expanded, and it is the latter class of loans in which there is the possibility of considerable contraction owing to the cessation of the war. In the meantime it should be the policy of the Federal Reserve Bank to use every effort to bring about as rapidly as possible the liquidation of war paper and at the same time do everything it can to encourage legitimate business by extending as far as possible necessary credit facilities. 100823°—19 26 402 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. BILLS D I S C O U N T E D — M E M B E R S . Bills discoumted for members constituted the major part of the loan operations, tile amount of such discounts increasing throughout the year. The maximum loans in any one month were made in December, the total being $511,014,436. The nuimber of banks rediseounting commercial paper was relatively small. S y far the largest amount of borrowing was on notes secured b y Government obligations, as this was more convenient, the rates of discount were' less, and much of the necessity for borrowing arose out of the subscriptions to Government bonds and certificates of indebtedness. The amount of trade acceptances discounted was $5,650\O53, compared with $726,078 the preceding year. Many inquiries were received regarding the use of these acceptances, and an increasing number of concerns is employing them. The movement toward their use, however, has apparently not yet made marked progress in this district, although the advantages of their adoption are recognized. Bills discounted during each month, distributed by classes of paper. For member banks. Secured b y Government obligations. January February March. April :. May.. June July August September October November December T o t a l , 1918 T o t a l , 1917 $7,964,580 20,683,066 11,439,160 30,063,101 65,890,797 66,997,77L 77,023,763 110,986,997 136,022,458 189,441,4?14 324,175,834 473,947,739 Total discounts. T r a d e ac- AH o t h e r . ceptances! $118,747 120,612 957,654 762,997 355,851 451,466 513,811 557,442 347,038 182,300 522,651 759,484 $36,200,982 117,655 31,868,368064,700 29,416,927 020,113 42,3&2,588 556,490 74,005,094 720,246 $2,038,200 1,934,745 94,760,656 376,674 134,466,076 928,502 160,967,563 721,623- 13,701,501 161,218,400 848,904 699,482. '" 6," 370," 656" 221,693,196 359,648,434 949,949 511,014,436 307,213 1,504,636,670 5,650,053 323,311,551 726,078 189,896,704 32,803,226 BANKERS F o r other Federal Reserve Banks. $565,122 1,682,222 3,009,293 2,385,421 20,445,040 42,724,903 22,175,858 IS, 170,441 18,934,001 16> 819,730 31,478,602 45,025,375 24,044,446 1,857,642,720 223,416,008 ACCEPTANCES. Bankers' acceptances purchased amount t o $120,008,026, compared with $85,913,796 the preceding year. Most of the bills were purchased for our account by the Federal Reserve Bank of New York. As yet there is no real market for bankers' bills in Philadelphia outside of the Federal Reserve Bank, and until the present urgent demand for money subsides and the banks have funds for investment in such paper it will be hard to establish one. I t is hoped t h a t ultimatelv such a market will be established and t h a t all banks will 403 BISTBIGT HO. 3—PHILADELPHIA. liquidity and at the same time further the development of international commerce and banking. This bank has purchased from its members all bills offered by them, and has at times made large purchases in the New York market when bills of the banks in this district were offered there. Acceptances bought in the open market and from other Federal Reserve Banks. Open-market purchases. January February March April... May June... July August September October November JXecember T o t a l , 1918 T o t a l , 1917 B a n k e r s * acceptances. T r a d e acceptances. $4,893,266 4,153,683 5,561,666 6,743,065 8,434,297 7,120,876 5,748,048 3,080,170 2,741,791 20,593,547 6,869,061 1,314,610 $274,572 77,254,080 83,976,401 Purchases from o t h e r Federal Reserve b a n k s . 9,000 79,005 $5,017,518 7,558,697 3,999,257 2,985,450 652,719 25,000 24,139 20,526 10,358;157 10,397,406 432,242 1,937,395 42,321,704 1,352.500 Total. 1918 15,167,838 9,171,201 13,129,363 10,821,327 11,419,747 7,773,595 5,748,048 4,432,670 2,741,791 30,976,704 17,290, 606 1,335,136 1917 $2,107 327 10,058,886 4,610,296 5,268,807 5,404,559 3,441,475 11,472,425 7.450,793 6; 056,282 4,565,180 19,479,626 5,998,140 120,008,026 85,913,796 FEDERAL RESERVE NOTES. Federal Reserve notes supplied satisfactorily the currency needs of the community. The establishment throughout the district of large shipyards and munitions plants necessitated huge pay rolls and demands for currency were incessant. Notes of the denomination of $20 were especially in demand and seemed to disappear from circulation. The bank has rendered a distinct service to its members in the matter of furnishing currency, which had formerly been done by the Sub treasury, The amount of money shipped to the bank by members and nonmembers averaged $1,750,000 daily and required the services of 30 employees to assort and count it. Federal Reserve notes outstanding reached the high mark of $243,142,700 on December 26. The act now provides for the issue of Federal Reserve notes in the denominations of $500, $1,000, $5,000, and $10,000, b u t so far none have been issued. The required gold reserve of 40 per cent against Federal Reserve notes in actual circulation was maintained throughout the year. Schedules 13 to 16 give a comparative statement of condition of the Federal Reserve agent's accounts, notes in circulation, denominations issued, notes outstanding at close of each month, and interdistrict movement of notes. 404 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. FEDERAL RESERVE BANK NOTES. The Pittman bill, which became law on April 23, 1918, provided for the issuance of Federal Reserve bank notes of the denominations of $1 and $2. These notes took the place of silver certificates, which were retired from circulation, and the coin securing them, was melted down and disposed of as bullion. At the close of the year, $8,926,163 of these notes were in actual circulation. These were secured by $825,000 one-year Treasury notes, and $8,855,000 United States certificates of indebtedness deposited with the Treasurer of the United States. As the purpose of issuing Federal Reserve bank notes was their substitution for silver certificates in order that the silver might be used in supplying the urgent demand for silver bullion, efforts were made to obtain all the silver certificates possible, and a considerable amount of such certificates was shipped through this bank for cancellation. Tables showing denominations issued and amount outstanding at end of each month are given in Schedules 17 and 18. INTERNAL MANAGEMENT OF THE BANK. OFFICERS AND DIRECTORS. Richard L. Austin, Chairman and Federal Reserve Agent; Henry B . Thompson, Deputy Chairman; E. Pusey Passmore, Governor; Edwin S. Stuart, Deputy Governor; William H. Hiitt, Deputy Governor. Class. Name. f Group 1... Joseph Wayne, jr., president Girard National Bank, Philadelphia, Pa. A -[Group 2 . . . Francis Douglas, cashier First National Bank, Wilkes-Barre, Pa. l G r o u p 3 . . . M. J. Murphy, c/o A. B. Leach & Co., hankers, New York City. [Group 1... Alba B. Johnson, president Baldwin Locomotive Works, Philadelphia, Pa. B ] Group 2 . . . Edwin S. Stuart, merchant, Philadelphia, Pa (Group 3 . . . Charles K. Haddon, vice president Victor Talking Machine Co., Camden, N. J. [Richard L. Austin 1 Henry B.Thompson,president U. S. Finishing Co., C 1 New York City. [Charles C. Harrison Residence. Term expires. Philadelphia, Pa Dec. 31,1920 Wilkes-Barre, Pa Dec. 31,1921 Clarks Green, Pa. Dec. 31,1919 Rosemont, Pa Do. Philadelphia, Pa Camden, N. J Philadelphia, Pa Dec. 31,1920 Dec. 31,1921 Philadelphia, Pa Dec. 31,1921 Dec. 31,1920 Dec. 31,1919 Mr. Levi L. Rue, president of the Philadelphia National Bank, was reelected a member of the Federal Advisory Council to represent the Third Federal Reserve District for the year 1918. Mr. Charles J. Rhoads, who had been governor since the organization of the bank, resigned on February 8, 1918, to undertake war work with the Y. M. C. A. The following minute relative to his withdrawal was adopted by the board of directors: The directors of the Federal Reserve Bank of Philadelphia desire to record their appreciation of the services rendered this bank by Mr. Rhoads as its governor, since organization, and the great reluctance with which they have accepted his resignation. DISTRICT HO. 3—PHILADELPHIA. 405 In their judgment, no one could have filled the office more capably than he has filled it, or have secured for the Federal Reserve system greater support, cooperation and confidence on the part of the banks and trust companies in this district. Since his resignation was presented on December 19, 1917, the directors have hoped that he might be induced to withdraw it. His decision, however, has been unalterable. His purpose in resigning to devote his abilities to the humanitarian work incident to the war deserves the particular admiration of all who know those abilities, as the directors of this bank have learned to know them. While regretting the termination of Mr. Rhoads's association with this bank, the directors appreciate the serious conviction and sense of duty which led to his resignation. They also recognize what he will contribute to the work upon which he enters, needing as it does just such ability, character, and purposes as Mr. Rhoads will bring to it. Mr. E. Pusey Passmore, then vice president of the Franklin National Bank, Philadelphia, was elected to succeed Mr. Khoads, on February 8, 1918. Mr. Frank M. H a r d t , deputy governor and cashier of the bank, resigned on June 30, to accept the position of vice president and treasurer of the Philadelphia Trust Co. Upon motion duly made and seconded, a minute reading in p a r t as follows was unanimously adopted by the board of directors: It is the desire of the board that this record be made of the regret with which Mr. Hardt's resignation has been accepted and of the appreciation with which his valuable services will be remembered. Absolutely unsparing of self, the bank's interests were at all times foremost with him. To its organization, its accomplishment, its service to its members and to the Nation, he has constantly given his every effort, and all have borne the mark of rare ability. Mr. William A. Dyer, then vice president and treasurer of the Cambridge Trust Co., Chester, Pa., a member of the Reserve system, was elected cashier on May 29, 1918. The office of deputy governor being vacant, Mr. William I I . H u t t , treasurer of the University of Pennsylvania, was elected to the position on May 29, 1918. Mr. James M. Toy, an employee of the bank, was elected an assistant cashier on May 29, 1918. A vacancy in the board of directors was caused by the death on September 24, 1918, of Hon. George W. F . Gaunt, a class B director, whose term would have expired on December 31, 1918. A minute reading in p a r t as follows was adopted by the board of directors on October 2, 1918: The directors of the Federal Reserve Bank of Philadelphia have learned with sorrow of the death on September 24, 1918, of George W. F. Gaunt, a director of this bank since its organization. His fellow directors have decided by this minute to express their admiration of his useful and honored life, as well as their appreciation of the service he has rendered this institution. They also desire to express their deep sympathy for his family. Mr. Charles K. Haddon, of Camden, N. J., was elected by group 3 banks to succeed Mr. Gaunt. Mr. William H . Peck, president of the Third National Bank, Scranton, Pa., a class A director, whose term 406 ANNUAL REPORT Off THE FEDERAL RESERVE BOARD, an amendment to the Federal Reserve Act. Mr Peck was one of the original directors of the bank. Mr. Francis Douglas, of Wilkes-Barre, Pa., was elected by group 2 banks to succeed Mr. Peck. The results of the regular election for a class A and a class B director, held from November IS to December 3, are shown in Schedule 19. At the end of 1917 the bank had 6 officers and 186 clerks and other employees, compared with 11 officers and 419 clerks and other employees at the end of 1918. Number of employees, 1918. Departments. Departments. Number of employees, 1918. BANK. BANK. Telegraph Telephone Transit Vault custodian Officers Analysis. Auditing Bookkeeping Building (porters, charwomen, etc.) Chauffeurs Coupon Discount Examination Federal Reserve agent Filing Mail. Miscellaneous Money Pages Printing Runners and guards Secretaries 3 3 103 3 335 GOVERNMENT, Liberty loan Government depositary... Government eneck " Liberty loan statistics Liberty loan committee... Capital Issues Committee. 48 25 11 5 3 3 95 The bank secured early in the year the building at 925 Chestnut Street, formerly occupied by the Penn Mutual Life Insurance Co. The building is centrally located and is very near the city's main post office. D E P A R T M E N T OF EXAMINATION. The large increase in the number of State bank and trust company members made it necessary to arrange for keeping informed about them and to provide for such examinations and inspections as might be necessary. Mr. W. W. Paddock, a national-bank examiner in this district, was engaged as Federal Reserve examiner and put in charge of this work. On August 15 he resigned to accept a position as bank examiner for the Federal Reserve Board, and Mr. Walter T. Grosscup, a bank examiner under the Commissioner of Banking of New Jersey, was engaged to fill the position. COLLECTION DEPARTMENT. For several months after the institution of the collection department, the greater portion of its business was received from other Federal Reserve Banks. At the present time only a comparatively DISTRICT NO. 3 407 PHILADELPHIA. cents an item was discontinued on July 1, 1918, and while this bank does not now make any charge for its service, items are sometimes subject to charges made by the collecting banks. The number of items handled is given herewith: Number Number Items received. paid. returned. January February March April May June July August September October November December 1918, Total 244 322 413 385 725 1,090 1,637 2,190 1,148 1,096 1,356 248 217 290 354 324 609 946 1,487 1,992 891 903 1,156 10,861 9,417 7 27 32 59 61 116 144 150 198 257 193 200 1, 444 COUPON DEPARTMENT. The paying and handling of coupons representing interest on the various issues of Liberty bonds involved a large amount of work, and a special department was organized for this purpose, in which there are five clerks. This force had to be considerably augmented, however, at interest-paying periods. The number and amount of coupons handled are given herewith: Number, j Amount I January.. February. March.. April May June July August September.. October November.. December... 170. 437, 260, 228, 87! 240; 527! 201; 430. Total.. 2, 728,361 $260,907 53,536 19,640 36,977 2, 411,898 1,298,396 410,094 160,573 1,184,568 1,496,681 1,534,622 2, 220,509 11,735,022 CLEARING DEPARTMENT. Figures showing transactions through the gold settlement fund and operations of the check-collection department of this bank are given in Schedules 20 and 21. 408 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD, GENERAL BANKING CONDITIONS IN DISTRICT AND MEMBER BANKS. RELATIONS WITH; There has been no change in the boundary lines of the Third Federal Reserve District, the territory comprised being as follows: Delaware (population 215,160). New Jersey, southern part (population 652,499), counties: Atlantic. Cape May. Mercer. Burlington. Cumberland. Ocean. Camden. Gloucester. Salem. Pennsylvania, eastern part (population 5,764,952), counties: Adams. Bedford. Berks. Blair. Bradford. Bucks. Cambria. Cameron. Carbon. Center. Chester. Clearfield. Clinton. Columbia. Cumberland. Dauphin. Delaware. Elk. Franklin. Fulton. Huntingdon. Juniata. Lackawanna. Lancaster. Lebanon Lehigh. Luzerne. Lycoming. McKean. Mifflin. Monroe. Montgomery. Montour. Northampton. Northumb erland. Perry. Philadelphia. Pike. Potter. Schuylkill. Snyder. Sullivan. Susquehanna. Tioga. Union. Wayne. Wyoming. York. The banking resources of national banks in the district increased 8 per cent during the year, and State institutions 14 per cent, making an increase in the combined banking resources of 10 per cent. The figures are given in Schedules 22 and 23. There were 628 national bank members at the beginning of the year; 5 went into liquidation, and 8 new banks were organized, making 631 national bank members at the end of the year. There were 7 State bank members at the beginning of the year; 22 new institutions were admitted, making 29 State bank members at the end of the year, and the total number of member banks 660. While the number of State institutions in the district which have already joined the Federal Reserve system is 29 out of 259 eligible institutions, yet those which were members at the end of the year represented 54 per cent of the resources of all eligible State institutions. Among the trust companies and State banks which have joined the system are included the largest in Philadelphia and in some other parts of the district. While applications for membership are coming in slowly, bankers seem to appreciate the advantages of membership, and there is every reason to hope t h a t most of the institutions will eventually come in. Such State institutions as have become members have availed them- DISTRICT NO. 3 — P H I L A D E L P H I A . 409 selves freely of the discount facilities of the bank. Our relations have been materially profitable and helpful; members speak with satisfaction of the results and have been of much assistance in obtaining new members. The banking departments of the States in the district have sent us, upon request, copies of reports of examinations of State bank members, which rendered it unnecessary to have special examinations made by our own examiners. One of the effects of trust companies joining the system has been somewhat of a change in the investments of such companies. A number of them now carry lines of paper eligible for rediscount at the Federal Keserve Bank, making their assets, to t h a t extent, more liquid than heretofore. The list of State institutions which are now members is given in Schedule 24. The first seven joined in 1917. In the fall of the year 95 per cent of total borrowings by member banks represented borrowings from the Federal Reserve Bank. Prior to June, 1917, when the first Liberty loan was issued, the bulk of the loans had been made with correspondent banks. The banks of the district have always been conservative, and their borrowings usually small, b u t during the past year they subscribed liberally to Liberty bonds and United States certificates of indebtedness, which necessitated a great increase in the amount of their borrowings. This, however, was less than anticipated, as early in the war the necessity for conserving capital and credit was appreciated and the policy of curtailment of credit for purposes not essential to the prosecution of the war was undertaken and generally maintained throughout the district. Holdings of Liberty bonds by national banks of the district on September 11, 1917, amounted to $23,903,000; on December 31, 1917, |48,066,000; on June 29, 1918, $64,071,000; and on November 1, 1918, $152,007,000. As the Government was constantly in the market for funds money rates were high throughout the year, 6 per cent being the prevailing rate for paper. The banks bought comparatively little. Transactions in municipal, industrial, railroad, and public-utility securities were also at a minimum owing to restrictions on credit and the diversion of funds to investment in Government bonds. At the time of the influenza epidemic the staffs of banking institutions, in common with other business concerns, were in some cases so seriously affected t h a t the operations of the banks could not be carried on without outside help. Upon the request of several institutions, this bank furnished them clerks from its staff which enabled such banks to carry on their operations. 410 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. ACCEPTANCES U P TO 100 PER CENT. During the year the Bank of North America and the First National Bank, both of Philadelphia, were authorized to accept drafts up to 100 per cent of their capital and surplus. The increase in acceptance liabilities of member banks is given herewith: Date of comptroller's call. Dec. 31,1915 Dec. 27,1916 Dec. 31,1917 Nov. 1,1918 Amount. $2,809,000 8)309,000 14,165,000 25,683,00a1 PHILADELPHIA CLEARING HOUSE MEMBERS. I n the latter part of the year the ratio of loans to deposits of the Philadelphia Clearing House was above 100 per cent. The relation of loans to deposits is shown in Schedule 25. FIDUCIARY POWERS GRANTED. The applications of the following banks for fiduciary powers in accordance with section 11 (k) of the Federal Reserve Act as originally enacted were approved in 1918: Atglen National Bank, Atglen, Pa. National Bank of Boyertown, Boyertown, Pa. First National Bank, Danville, Pa. Conestoga National Bank, Lancaster, Pa. South Bethlehem National Bank, South Bethlehem, Pa. Wyoming National Bank, Wilkes-Barre, Pa. National Bank of Topton, Topton, Pa. First National Bank, Williamsport, Pa. Western National Bank, York, Pa. The Phelan amendment to the Federal Reserve Act, which became law on September 26, 1918, in addition to authorizing the Federal Reserve Board to permit banks to act as trustee, executor, adhninistrator, and registrar of stocks and bonds, also permitted the granting of the right to act as guardian of estates, assignee, receiver, committee of estates of lunatics, or in any other fiduciary capacity in which State banks, trust companies, or other corporations which come into competition with national banks are permitted to act under the laws of the State in which the national bank is located. No permit can be issued to any national banking association having a capital and surplus less than the capital and surplus required by State law of State banks, trust companies, and corporations exercising such powers. The minimum capital required for institutions exercising fiduciary powers in Pennsylvania is $125,000; in New Jersey, $400,000; in Delaware, $25,000. By capital is meant the amount actually credited to capital and takes no account of surplus. The applications of m a n y institutions which desired authority to exercise fiduciary DISTRICT NO. 3 — P H I L A D E L P H I A . 411 powers could not be approved owing to their not having sufficient capital. The following institutions were granted these powers under the new act: Merchants National Bank, Allentown, Pa. Third National Bank, Scranton, Pa. South Bethlehem National Bank, South Bethlehem, Pa. Swedesboro National Bank, Swedesboro, N. J. First National Bank, Williamsport, Pa. First National Bank, Woodbury, N. J. Western National Bank, York, Pa. CLAYTON ACT. Only a few applications for permission to serve as director under the terms of the Clayton Act and Kern amendment were received during the }^ear, the bulk of such applications having been made in the fall of 1916. FISCAL AGENCY OF THE UNITED STATES. The Federal Reserve Bank has been brought prominently before the public through its activities as fiscal agent of the Government in the placing of the Liberty bonds and certificates of indebtedness. There has been a realization of the importance of the system through the comparative ease of the money market t h a t was maintained during the war and the facility with which the financial transactions of the Government were carried through. Schedule 26 shows subscriptions to the four Liberty loan issues. LIBERTY LOANS. Two campaigns for the sale of Liberty bonds were conducted during the year, and from the standpoint of distribution the third Liberty loan campaign was by far the most successful, 1,870,928 subscribers having been obtained. I t should be said, however, t h a t the Work of the fourth Liberty loan was hampered very much by the influenza epidemic, which was at its height during the campaign. At one time more than half the loan workers were ill, or else occupied in nursing the sick; also theaters, churches, schools, etc., were closed and it was found necessary in soliciting subscriptions for the fourth loan to appeal for large subscriptions rather than a great number of subscribers. Previous to the opening of these campaigns the work of the organization of the various committees had been completed, a conference was held of the secretaries of all the districts into which the Philadelphia Federal Keserve District had been divided and opportunity afforded to familiarize themselves with the details of the loan and the work they were about to undertake. The intensive work of the campaigns was begun on the first day. 412 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. , One of the objectives of the campaigns was the obtaining of small subscriptions and this was greatly facilitated by the cooperation of banks in agreeing to take subscriptions for bonds to be paid in installments at the rate of $1 a week for $50 bonds and proportionately larger amounts based upon the denomination of the bonds subscribed for. Subscriptions placed under these conditions involved the banks in a great amount of work and much expense. A committee that played a large part in making the campaigns a success was t h a t having charge of all publicity matters for the district. I t forwarded to all organizations and subcommittees posters, buttons, etc., for use in the campaigns and attended to all the newspaper advertising, etc. I n connection with this committee a press bureau was established, which kept in touch with the newspapers of the district, and through the hearty cooperation of the papers a large amount of space was allotted in them for news incident to the campaigns. As no funds could be provided out of the proceeds of the sale of bonds for advertising purposes, all newspaper advertising for the campaigns was contributed by manufacturers, merchants, banking institutions, insurance companies, and other corporations of the district. The cost of such advertising was very large and the country is under great obligation to those who contributed so generously for this purpose. I n addition to the newspaper publicity, two innovations of marked value were adopted before the opening of the third campaign. A replica of Bartholdi's Statue of Liberty was erected on Broad Street, Philadelphia, immediately south of the city hall, at which, almost continuously, night and day, during the entire period of the third campaign, there was public speaking, band concerts, and other demonstrations, which created a spirit of enthusiasm and gave encouragement to the workers. During the fourth campaign, owing to the influenza epidemic, public assemblages were forbidden, consequently no meetings were held around the statue. From the balcony of this statue the Secretary of the Treasury, Hon. W. G. McAdoo, delivered an address on April 6, at the opening of the third campaign. Another feature which was very helpful was the publication of the " L i b e r t y Line," a journal issued weekly by the committee, through which every worker was informed as to the operation of the campaigns and the methods being used b y the various organizations and committees to promote the work. The encouragement and help given by these suggestions and advice was instructive and stimulating. I n the emergency during the fourth liberty loan campaign caused by the epidemic the Boy Scouts were called upon and rendered invaluable service, temporarily performing many of the duties of the regular workers. DISTKICT NX). 3 — P H I L A D E L P H I A . 413 Special reference should be made of the work of the industrial committee for the city of Philadelphia, which secured $78,000,000 subscriptions to the third and $164,000,000 to the fourth loans. The industries of the city were divided into 19 groups, 136 trade committees being organized to work in these groups, and 1,800 workers enrolled. The committee issued a daily bulletin, stating the progress made. I n this district, whose population contains a large percentage of foreign born, the foreign-language division had an important part to play. I t urged "Americanization"—the speaking of the American language, adopton of American customs, and, above all, the owning of Liberty bonds. The executive secretary spoke in eight different languages throughout the district. The response was spontaneous from all nationalities and an interesting feature of the canvas was t h a t the German-Americans made the best showing of all in the city of Philadelphia, with over twenty millions of bonds to their credit in the fourth loan out of a total foreign sale of thirty-three millions. I n the Philadelphia Federal Keserve District, as elsewhere, the services of the women were invaluable in the loan campaigns. I n the third campaign their organization was on State lines, and did not cooperate so closely with the Liberty loan committee, but in the fourth campaign their organization was coextensive with that of the central Liberty loan committee of the district. They took an important part in the house-to-house canvass throughout the city, made public addresses, visited schools, and maintained booths in the streets of the cities and towns of the district, at which subscriptions were received. Their organization was well carried out, and, if possible, more completely marshaled than that of the men. UNITED STATES CERTIFICATES OP INDEBTEDNESS. About 7 per cent of each issue of United States certificates of indebtedness was allotted to this district, the allotments being placed with the banks of the district in amounts proportionate to their resources. Previous to the third Liberty loan this work was performed by the officers of the bank, but as the amount of the issues increased they were unable to continue it and the matter was placed in the hands of Mr. John H . Mason, of Philadelphia, as director of sales. The district has oversubscribed its quota for almost every issue. In connection with these operations, 647 of the banks availed themselves of the opportunity to become depositaries of United States loan funds, as a result of which the payments made for the purchase of certificates were withdrawn gradually from the banks, thus making the purchase of certificates by the banks much more facile. The results of the subscriptions are given in Schedule 27. 414 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. CAPITAL ISSUES COMMITTEE. Early in the year the Capital Issues Committee appointed subcommittees at each of the Federal Reserve Banks. The chairman of the board of directors of each Federal Reserve Bank acted as chairman of the subcommittee, and the governor of the Federal Reserve Bank as vice chairman. Richard L. Austin, chairman, appointed the following committee for the Philadelphia Federal Reserve district: E. P . Passmore, vice chairman; Clarence M. Clark, John Gribbel, Albert A. Jackson, Lewis Lillie, Howard S. Graham, Robert W. Daniels, Charles Fearon, George H . Frazier, A. C. Dinkey, Thomas S. Gates, Charles C. Harrison, jr., Walter C. Janney, Horatio G. Lloyd, W. S. Maddox, John S. Newbold, F . B. Snyder, Ira Vaughn, Joseph Wayne, jr., and Charles W . Welsh, all of Philadelphia; John Brooks, Scranton, P a . ; Benjamin E . Mann, Lancaster, Pa.; George K. Reilly, Harrisburg, P a . ; Ferdinand, W. Roebling, jr., Trenton, N . J.; H . B . Schooley, WilkesBarre, P a . ; and L. Scott Townsend, Wilmington, Del. A good deal of educational work was necessary to bring this m a t t e r to the attention of bankers and the general public. Notices were given to the press for publication in all the newspapers of the district. Communications reflecting the policy of the Government and stating in detail the procedure which should be followed by those interested in issuing securities were sent to all bankers, corporations, and municipalities interested in the issue of securities, and the necessary staff was provided to take care of the work. Ninety-three thousand copies of a pamphlet entitled "Economy the Gospel in E n g l a n d " were distributed. For some months the work of the committee continued on a purely voluntary or unofficial basis. On April 5, 1918, however, the War Finance Corporation Act was approved and under it district committees were reappointed in each Federal Reserve district throughout the country, all new issues of securities being submitted to and passed upon by the district committee in whose district the issues originated and then referred to the Washington committee for final action. I n order t h a t the work of the district committee might be carried out in the most expeditious and effective manner, a permanent executive committee, a secretary, and an assistant secretary were appointed. The executive committee consisted of: Richard L. Austin, chairman; E. P . Passmore, vice chairman; Clarence M. Clark, Howard S. Graham, John Gribbel, Albert A. Jackson, and Lewis Lillie. Other members of the main committee were called in rotation for a period of 60 days to serve with the executive committee, and Messrs. Charles W. Welsh, Charles Fearon, John S.y Newbold, and Joseph Wayne, jr., gave their assistance in this manner. Arthur E . Post, assistant Federal Reserve agent, was named as secretary of the DISTRICT NO, 3 PHILADELPHIA. 415 committee, and Edward V. Kane, of the firm of Edward V. Kane & Co., was appointed assistant secretary. The capital issues committee of this district passed upon 182 applications, approximating $139,830,339. Of these, 149 applications, approximating $98,888,649, were approved, while 22 applications, approximating $40,941,690, were disapproved. In the cas« of 11 applications, securities aggregating $10,215,000 were tied up, under agreement not to be sold during the period of the war. Aside from those officially disapproved, prospective issues approximating $75,000,000, which would serve no military or economic purpose, were, in response to the committee's arguments, discouraged and postponed. While it was not part of the committee's duty to pass upon the merits of any issue of securities, its functions being confined to the question of timeliness as applied to the Government's war needs,, the large and increasing number of doubtful issues of miscellaneous stocks pertinently suggests the desirability of continued Federal supervision, with a view to the protection of the public from reckless and unscrupulous promoters. Supervision and restraint, with penalty-enforcing power, are especially important in view of the persistent efforts of promoters to exchange their shares for Liberty bonds. The effect of this business upon the market price of Government issues is obvious, since the latter are promptly converted into cash as soon as an exchange has been effected. Simultaneously with the closing of the work of the Capital Issues Committee at the end of the year, Chairman Hamlin, of the main committee at Washington, addressed a letter to the chairman of the committee for this district, reading in part as follows: As we approach t h e end of our work, it is t h e sincere wish of t h e committee and myself t h a t you and t h e other members of t h e Philadelphia district committee may realize how grateful we are for t h e splendid patriotic cooperation you have given us. We all know t h a t t h e idea back of the Capital Issues Committee would have had little effect without t h e help of t h e district committees, which have shown themselves to b e composed of t h e most intelligent, loyal, and unselfish men t h a t could b e gathered together i n t h e service of t h e Government. T h e district committeemen scattered throughout t h e country, and not we here in Washington, have been the bulwark of t h e committee. We know it and appreciate it and the success of the control of capital issues is due very largely to t h e efforts of yourself and your associates. T h e work throughout has been arduous, difficult, and to a large degree thankless, b u t we are assured by t h e Treasury Department t h a t it has been of tremendous value, and every member of your committee has a right to b e proud of his part in it. BUSINESS CONDITIONS IN THE DISTRICT. The large number of plants for the manufacture of iron and steel and all their products in this district made it naturally one of the most important centers for the production of munitions of war. The largest plants for the manufacture of guns and small arms are 416 ANNUAL KEPORT OF THE FEDERAL RESERVE BOARD. located here, including the several plants of the Baldwin Locomotive Works, Midvale Steel & Ordnance Co., Bethlehem Steel Co., numbers of steel-casting plants, and the great shipyards along the Delaware River. There was no unemployment in the district throughout the year. All lines of industry were hampered by the scarcity of labor, this scarcity being aggravated by reductions in the number of workers through enlistments and draft calls. Wage earners were attracted to munitions factories, shipyards, and other war plants by the high wages paid. The competition for labor and the steadily increasing wages resulted in much shifting of labor and consequent inefficiency. The employment of women in new lines of work did much to relieve the labor scarcity. After the signing of the armistice many plants either closed down or reduced operations, and in so doing released thousands of workers. This, in connection with the return of some thousands more from military service, improved the labor situation greatly, but as yet there appears to be no surplus of labor. Old shipyards were greatly enlarged and extended, new ones created, and the industrial area along the Delaware River witnessed an almost unthinkable expansion in shipbuilding. The Emergency Fleet Corporation let contracts to 11 yards in the district for the delivery of 3,442,577 dead-weight tons, equivalent to one-fourth of the tonnage provided for in the national shipbuilding program. Ten of the yards are manufacturing steel ships and have received contracts from the Fleet Corporation for a total of 412 ships, with an aggregate tonnage of 3,407,577. They employ very nearly 100,000 persons, the majority of whom are skilled workers. U p to November 30, 1918, the number of vessels delivered and launched was 79, of an aggregate tonnage of 523,442. Ninety-four ships of 765,120 total tonnage were in process of construction. The other shipyard is for the construction of wooden ships and has received awards for 10 wooden steamers of 3,500 dead-weight tons each. The total value of the above contracts is $689,390,000. The war's demands threw an immense amount of work upon the textile machinery of the district, the orders.placed for underwear, hosiery, other knit goods, and material for clothing being sufficient to absorb all the productive capacity of the mills. At times, every loom in the district was employed in making cloth for the Government. While operations were much embarrassed by the shortage of labor and by difficulties in obtaining supplies, yet large quantities of goods were produced. Building operations, apart from those incident to war work, were the smallest on record for years. Inability to secure financial accommodation and the high cost and scarcity of materials and labor brought building for strictly civilian purposes almost to a DISTRICT NO. 3 — P H I L A D E L P H I A . 417 standstill. Builders regard the prospect for active operations as good and are anticipating a better supply of labor and lower prices for materials following the curtailment of Government operations. The coal output of the district has, for the most part, been in excess of the two previous years. The severe shortage, due to scarcity of cars and other transportation difficulties, which was so disastrous last winter, has been avoided this winter. While a heavy loss in production was occasioned by the influenza epidemic, the situation at the end of the year showed considerable improvement, it being apparent that all requirements for fuel could be supplied. The production of anthracite coal for 1918 amounted to 88,840,000 tons, indicating but little change from the high figures of the immediately preceding year. Reports of the production of bituminous coal indicate an increase for the year of about 18 per cent. The year 1918 has been successful for the farmers in the district. There was no unusual damage from frost or storm, the greatest damage being caused by a prolonged drought during part of the summer, which hurt particularly the potato crop. The estimated total acreage of the nine principal crops in Pennsylvania was 8,379,054 tons, an increase of 320,219 over 1917. The estimated total value of these crops was $377,000,000, which is $25,000,000 more than 1917. The tobacco production was 58,000,000 pounds, an increase of 14 per cent over the preceding year. The average price was 25 cents per pound, compared with 22 cents last year. At the close of the year, the condition of wheat in the ground was 111 per cent, compared with 91 per cent a year ago, while that of rye was 109 per cent, 17 per cent more than the preceding year. The truck farmers in New Jersey had generally good crops. The tomato crop was very good, b u t the berry crop was short, in some places being only 25 per cent of normal. The hay and rye crops were unusually large. I n Delaware, pasturage, hay, and dairying were about normal in production, b u t above normal in profit. The apple crop was 50 per cent above the 10-year average. The peach crop, which was only half the normal one, was worth $1,000,000. There were normal crops of tomatoes and other vegetables, with prices 50 per cent higher than prewar figures. BANK CLEARINGS. Bank clearings in the district for the year reached the highest level ever recorded,, the maximum for any one month being $2,003,307,000, during October. Schedule 28 shows comparative volume of clearings for each month, 1915-1918. 100823°—10 27 418 ASTXUAL REPORT OF T H E FEDERAL RESERVE BOARD. Clearings in the third district. 1918 Januarv February Mav July November T o t a l , 1918 T o t a l , 1917 Per cent increase or decrease compared w i t h 1917. District outside of Philadelphia. T o t a l for d i s t r i c t . $1,522,827,616 1,223.305,964 1,427,175,557 1,579,825,000 1,711,945,000 1,700,306,000 1,765,812,000 1,734,633,000 1,610,611,000 1,886,419,000 1,781,704,327 1,772,418,777 $98,170,474 81,216,156 101,811,793 120,777,000 111,232,000 107,643,000 115,622,000 107,676,000 104,638,000 116,888,000 103,117,922 106,031,694 $1,620,998,090 1,304,522,120 1,528,987,350 1,700,602,000 1,823,177,000 1,807,949,000 1,881,434,000 1,842,314,000 1,715,249,000 2,003,307,000 1,884,822,249 1,878,450,471 + 8 19,716,988,211 17,197,733,209 1,274,824,039 1,174,144,540 20,991,812,280 18,371,877,749 +H Philadelphia. - 2 - 2 + 13 + 16 + 12 +31 +26 +20 + 19 + 15 +14 COMMERCIAL FAILURES. The number of commercial failures fell sharply, and in October there were only 19 in the Third Federal Reserve District, which is the lowest number recorded in some years. I t is interesting to note t h a t during other wars the experience has been t h a t the inflation of commodity prices reached its peak about the time t h a t peace comes definitely in sight, followed by a period of a few months in which there was a marked decline in the number of commercial failures. A decline in commodity prices generally followed the termination of the war, which in turn was followed by a sharp rise in the number of commercial failures. According to Bradstreet's commodity index number, prices have been gradually declining since the apparent peak reached last July so t h a t an increase in the number of failures m a y be expected. Brad-street's report of commercial failures in the Third Federal Reserve District, as to capital employed. $5,000 and less. January February March May Juiie July August September October December T o t a l , 1918 T o t a l , 1917 $5,000 to $20,000. $20,000 $50,000 $50,000. $100,000. to 71 68 54 36 48 33 28 30 28 16 20 23 7 7 4 1 4 3 3 1 2 455 629 35 27 11 14 to 2 2 2 2 $100,000 to $500,000. 1918 79 78 63 39 55 33 29 32 32 19 26 23 2 2 512 2 2 1 3 9 2 Total. 1 1 1 classified 1917 75 51 61 56 61 45 48 49 40 65 CO 63 674 419 DISTRICT NT). 3 — P H I L A D E L P H I A . IMPORTS AND EXPORTS. The foreign business through the port of Philadelphia was quite heavy throughout the year, although exports were not as large as in the preceding year. Imports were uniformly greater than during 1917. Business through the port of Philadelphia. Exports. Imports 1918 January February... March...... April May June July August September., October November.. December.. Total ' 1918 $38,975,065 26,534,875 32,903,058 39,962,456 40,919,371 26,786,000 28,493,000 39,307,314 54,356, 000 38,650,995 28,920,174 31,224,722 $43,634,046 57,652,322 38,879,748 39,889,979 42,507,832 41,284,111 21,451,383 57,381,188 24^093,366 62,724,000 32,309,000 40,158,000 427,033,030 501,964,975 I 1917 $7,082, 8,021, 10,082, 13,086, 13,533, 9,932, 11,181, 8,387, 9,567, 8,776, 8,850, 6,069, 093,450 041,989 438, 047 103,862 424, 218 304,452 953, 507 247, 078 276,928 486,000 106,000 413,000 114,571,396 101,971,531 FREIGHT-CAR MOVEMENTS. During the early p a r t of the year the movement of freight by railroads in the district was seriously hampered by congestion at terminal points, fuel shortage, and unusually cold weather. Beginning with the month of May conditions showed much improvement. Eastbound shipments of bituminous coal at Lewistown Junction, on the Pennsylvania Railroad, were 18 per cent larger than the preceding year. Pennsylvania Railroad freight-car movements at Lewistown Bituminous coal e a s t b o u n d . January March May June July August September October Total Coke eastbound. Miscellaneous eastbound. Junction, Miscellaneous westbound. Total, 1918 1917 1918 1917 1918 1917 1918 1917 1918 33,397 37,728 44, 505 42, 502 53,156 54,479 53, 614 54,562 55,101 53'. 396 43; 464 45, 297 41,132 35, 216 45,843 41.192 45,785 42,824 41,367 40,442 38, 215 38,009 40, 031 32.193 3,111 3,692 4,279 5,816 5,608 5,114 5, 566 5,277 4,709 4,737 4,133 4; 076 5, 563 4,290 5, 751 5,552 5, 643 6,034 6,366 5, 796 5,596 5,503 5,404 4,449 17,946 21,822 33, 325 34, 331 34, 234 32, 581 34,115 33, 697 31, 787 31, 635 33, 441 33, 993 33,820 31,024 38,833 39,103 38, 085 34, 382 33, 057 30,618 31, 766 30,211 26,917 19,300 7, 908 10,509 14,524 17,196 18, 333 19, 018 21,459 17, 238 16,884 15, 821 15,358 15,216 21,047 18, 733 24, 629 24,375 26,201 26,257 25,479 24, 775 22,821 20,834 17, 641 9,958 62,362 73, 751 96,633 99,845 111,331 111,192 114,754 110, 774 108,481 105,589 96,396 98,582 101,552 89,263 115,056 110,222 115,714 109,497 106,269 101, S31 98,398 94,557 89,993 65,900 571,201 482,249 56,118 65,947 372,907 387,116 189,464 262,750 1,189, 690 1 193 0(52 1917 POST OFFK :E BU S I N E S S. The business of the post offices throughout the district was considerably ahead of last year, both in postal receipts and money-order transactions. Increased industrial activity resulted in a heavy increase in the use of the mails. 420 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Postal and money-order business. Postal business. Money-order b u s i n e s s . P o s t office at— Allentown, P a Atlantic City, N . J Camden, N . J Harrisburg, P a Lancaster, P a Lebanon, P a Philadelphia, P a Scranton, P a Trenton, N. J Wilkes-Barre, P a Williamsport, P a W i l m i n g t o n , Del 1918 1917 $343,514 480,929 241,825 422,751 701,948 276,280 75,869 11,730, 505 668,231 804,233 354,827 226,253 681,965 $266, 749 372,626 180,894 343,359 626,976 226,946 63,820 10,505,242 543, 725 442,749 277,661 205,136 471,830 1918 1917 $694,929 $591,399 856,649 1,643,848 2,146,215 318, 737 348,491 33,077,822 781, 922 3,265, 560 - 778,196 318,281 1, 634,200 663,064 1,159,072 1,731 978 278 888 312,759 26,724,046 628,827 2,545,547 646,367 289,350 967,631 RESUME OF BUSINESS CONDITIONS. January.—General business was disturbed by the inauguration of "heatless Mondays/ 1 ' which caused the shutting down of industry for several days for the purpose of relieving the freight congestion and expediting the distribution of coal. All branches of business directly connected with the war continually absorbed more and more of the productive capacity of the district and gave constant employment t o labor at high wages. Labor conditions were unsatisfactory and much complaint was made about the shifting of workers and the loss incident to the continual reemployment of men. Iron and steel plants operated at about 30 per cent of capacity in the middle of the month, the situation being worse than at any time since the beginning of the war. Iron and steel producers were hampered n o t only b y their inability to secure coal and coke, b u t by the sweeping embargoes on outgoing traffic. Retail trade was much better than might have been expected after the holiday season. The demand for necessities was preeminent, the demand for luxuries declining. The money market was quiet b u t firm. Call mone}^ ruled at 6 per cent, and choice commercial paper from 5J to 6 per cent. February.—Aside from the interruption in business caused by the closing down order on Mondays, there was no important change in conditions, manufacturers as a rule continuing to operate to as near capacity as circumstances permitted. Retail trade was ahead of last year, both in quantity of goods sold and in value of sales. Due to the railroad congestion, large quantities of finished goods accumulated, which resulted in curtailing production and the tying up of much capital. The iron and steel industry was still partly paralyzed by the lack of fuel and transportation facilities, production being about 50 per cent of capacity. The banks were unable to accumulate surplus funds owing to the continuous purchases of Treasury certificates of indebtedness and the renewal of notes by their customers, whose business was seriously hampered by the railroad freight tie-up. Rates for money advanced slightly, commercial paper selling a t 6 per cent, a slight concession being made, however, for the best names short maturities. Digitized forofFRASER DISTRICT NO. 3 — P H I L A D E L P H I A . 421 MareJi.—Favorable weather conditions and the consequent easing up of the fuel situation resulted in increasing activity in man}^ lines of industry. There was a strong retail demand for seasonable apparel. Considerable difficulty was experienced in obtaining adequate help, and necessary advances in wages added to the already greatly increased cost of doing business. The moderation in the weather permitted of steady improvement in the movement of freight cars. The supply of sugar showed some increase, but flour was scarce and substitutes hard to get. Iron and steel production recovered slowly, plants running at from 60 to 75 per cent of capacity. The impossibility of securing heavy leathers limited the production of turned shoes. The textile mills ran to capacity. Money rates remained high, the market being on a 6 per cent basis. Very little choice commercial paper was offered, but there was a liberal supply of the medium grade. Banks were preparing for the third Liberty loan campaign. The Philadelphia institutions rediscounted in considerable volume, borrowings by out-of-town banks being comparatively small. April.—The industrial capacity of the district was devoted increasingly to the production of materials essential to the conduct of the war. This was accomplished through the extension of the system of Government priority orders, which controlled the distribution of raw materials. Many concerns which had been engaged in the production of nonessentials diverted their plants to the manufacture of some kind of war materials and supplies. The gradual shifting of labor to the more essential war industries, in addition to the difficulties in obtaining supplies, reduced the output of nonessential goods. Although buyers displayed conservatism, the volume of sales in retail lines was very satisfactory. Business during the first part of the month was slightly behind that of last year because of an early Easter and bad weather. On account of high wages, wage earners were the principal purchasers of goods, being able to buy goods which they had previously been unable to purchase. Proprietors of small stores in some of the large cities closed their stores and took employment in the shipyards and other places where they could earn more money. Farmers financed themselves by cash payments, due, apparently, to the prosperity brought about by high prices during the last few years. The use of bank loans or notes to implement dealers to finance such transactions fell off to a very noticeable extent. Some industries were embarrassed by the rapidly increasing costs of production and inability to secure a sufficient supply of labor. Mone}^ rates remained firm, the prevailing rate for commercial paper being 6 per cent. May.—The industries of the district were almost completely adjusted to a war basis. Retail trade was about 40 per cent ahead of last year. Business was hampered considerably by scarcity of many Digitized forkinds FRASER of raw materials and the inadequate supply of competent labor. 422 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. The production of iron and steel was about 95 per cent of capacity. The economy campaign resulted in an easing in the food situation. Motor trucks came more and more into use as the congestion increased around the principal industrial centers of the district. Shipments between cities were made on regular schedules maintained by numerous companies operating trucks. A firm money market prevailed, 6 per cent being asked on both call and time loans. Borrowings by member banks were not as heavy as anticipated, and the third Liberty loan was floated apparently without any undue strain on the money market. June.—General confidence in the business situation was denoted by the liberal advance buying throughout the district. Retail demand for seasonable merchandise continued active, although the steady decrease in the variety of goods offered by the leading stores and the uniformly high prices caused a well-defined tendency toward economy. In all lines increasing difficulty was experienced in replenishing supplies. The railroad freight-car movement improved greatly and coal moved more freely. The crops throughout the district were reported up to the average for the past 10 years. The building situation continued quiet, new construction being confined almost exclusively to the erection of buildings for the Government or war industries. The money market remained firm a t 6 per cent. Increased activity was noted in the sale of bonds and other securities. July.—Notwithstanding the shortage of supplies affecting practically all lines, marked activity in general business continued, the demand for most kinds of merchandise being greater than the supply. Midsummer influences were not very noticeable. Business at the South Jersey seashore resorts was quiet. Hotels which were normally crowded in July were not half filled, and the stores felt the effects of war-time economies. There was little inclination among the majority of people to go away for any extended time. Many who formerly went to the seashore or mountain resorts for the better part of the summer remained in or about town. The shipyards and war industries in the vicinity of Philadelphia absorbed workmen from all j>oints, and created a severe shortage of rentable property. The stringency was not relieved materially by new home construction, as building .was still quiet. Difficulty in obtaining financial accommodation and high costs and scarcity of materials and labor continued to operate as restrictive factors in this industry, which was at the lowest mark for a decade. Prospects of early-sown crops faded somewhat owing to the prolonged dry weather, but the shading of estimates thus rendered necessary was not material. The rate for money ruled at 6 per cent. The market was freed from much unnecessary financing by the Capital Issues Committee and the banks responded to the war needs of the Government by curtailing their credits to nonessential industries. Digitized forBusiness FRASER on the Philadelphia Stock Exchange was dull, although DISTRICT NO. 3 — P H I L A D E L P H I A . 423- there was continued absorption by investors of high-grade railroad securities. August.—General business throughout the district was back to substantially the maximum level of a year ago. The demand for goods necessary to the conduct of the war was sufficient to more than employ all available machinery and labor. The distribution of goods through the jobbers and retailers was satisfactory and collections were very good. The coal situation was more satisfactory mainly because the car supply showed improvement. The wool business was taken over by the Government. No wool was sold for civilian purposes, and all importation of foreign wools was suspended, except for Government use. The largest possible tonnage of iron and steel was being turned out, the July output of iron being better than for any similar month and the number of furnaces in blast the greatest ever known. Government financing and the requirements of business maintained an active demand for money. Hates throughout the district continued firm at 6 per cent for nearly all classes of loans. The large subscriptions of banks to United States certificates of indebtedness caused them to restrict credits wherever possible, and the tendency was to curtail accommodations to lines of business not necessary to public welfare or essential to the conduct of the war. Sentiment was helped by the announcement that the interest rate of the fourth Liberty loan would not be higher than that of the third loan, and increasing confidence in the security markets was noted. September.—Business conditions throughout the district continued favorable, trade in most lines surpassing last year's records. Manufacturers in all important lines operated to the fullest extent permitted by the available supplies of materials and labor. Retailers reported a steady demand for all kinds of staple commodities, but experienced difficulty in obtaining sufficient merchandise to meet the requirements of their customers. Retail distributors of women's wearing apparel did a large business, the demand for hig