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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 74,466
99,462
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
Purw h i c h chasing m o v et- m o v e men
ment
purb a n k . from—
to—
chased.

2,057
41,411

18, 949
65,628

56,562
207,534

3,685
2,770
2,057

679

265

6,384
111 047
1,283
68,512
174,860

92,046
329,491
68,732
77,722

57
1,093

174,860

8,503
21,397
4,791

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

1,400,371

1,114,452

29,384
27,334
21,616

21,483
18,733
i 39, 494

14,769
247,513
•

217,817
896,635

7,901
8,601
61,110

T o t a l d i s c o u n t e d bills

363,025
1,037,346

285,919

Total




Increase.

145,208
140,711

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

D e c . 27,
1918.

27
15,959
208.247

1,217
i 39,266

339,894
625,813

decrease.

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

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

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

/.

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.

2

55 per cent.

Increase.

962.7
1,136.8
416.7
84.7
225.6
546.0
400.7

3

94 per cent.

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

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.

Dec. 27,
1918.

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

,-

.

:

167,994

T o t a l resources

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

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

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
to participate.
invited


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.

June 29, 1918.

Sept. 1, 1918.

Num- Resources. Num- Resources. Num- Resources. Num- Resources.
ber.
ber.
ber.
ber.
14
44
8
13
14
20
71
13
16
9
11
17

Total

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

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

5,013,885

449

5,938,746

513

5,994,824

713

6,575,800

Oct . 1, 1918.
Federal Reserve district.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis:
KansasCity
Dallas
.
San Francisco
Total—

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

Banks.

Bills
discounted.

Average for year

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

January
February
March
April
May
June
July
August
September
October
November
December

Bills
bought
in open
market.
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.
Transferred Reserved for
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.



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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


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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

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

.

Total

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:
Total
(approximate).

$1,000,000
a n d over.

Total
1

Less t h a n
$100,000.

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

Minneapolis
K a n s a s City
Dallas
San Francisco.

$100,000 t o
$250,000.

17
27
42
37
41
15
6
3
13
7

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago

$250,000 t o
$1,000,000.

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



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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



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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.




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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

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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 4 i
H

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
member 16 to 90
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

5
5

31 31 4 31 4
4 31 4£ 4 41

5

31

5

31

31 4
4 41

o
H3

3*
3*
4

31
31
31
4

31
3

31 3 4
4 31

w

w

31 31
3 4
31 4
4

31
31

5

o

31
31
4
41

5
5

5

i

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

•a
1 a
a
to

H1

1-' •a
a

o
Hi

Hi

a

1W

.5?

o
H3

4

6

4

6

41

6

4i

4

4J

41

5

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

•a

1 ^la

I
H1

5

4

Secured by
United States
Government
war obligations.

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

31
4

3

4

3*

41

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
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

5

41

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*

61
4

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

44

Jan. 1,1918, to Dec. 31,1918

44
4f

4

5

5

4

44
5

44

44

4|

5

44

4|

4^

5

4|

54
54

4
4

6
4

4

6
5

44
4!

4

44

4

54

44

44

4f

44

54

54

64
4

4

34
4

4

6
4

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
4f

4
44

4
4
4

Jan. 1,1918, to Dec. 31,1918
^ansas City:
Nov. 16,1914, to Dec. 31,1915

34
4

44
6

31

6

34

44

44
4|

4

m

4

44

4
4

4
4

4
4

6
4

44

44

44
6
4

4

64
44
44

4

Si

44

H

44

64
4

4

4

44

4

44

41

44

4
4
4
*2

6

3

6

3

34

44
4f

44

4

64' 4
4
4

34

3

34
4

4

34

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
54
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

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

123,850
131,443
151,100
164,932
180,235
19L896
21075b9
236,172
252,259
264,607
281,724

259,846

Feb. 21

5

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.
In gold
Gold coin In redemp- settlement
tion fund,
fund,
and
United
Federal
certificates
States
in vault. Treasurer. Reserve
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 ne
serve notes
against
reserves. deposits, 3i Federal Re-| in actual
serve notes circulation.
per cent. in circulation.
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 net
reserves. deposits, 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

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[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

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

W
O

359,600,000

Shipped

H

On hand
Richmond;
Printed
Shipped

<
W

On hand
Atlanta:
Printed
Shipped
On h a n d




,• . •*

. - ^ •

,....-

o

Chicago:
Printed
Shipped

101,580,000
96,320,000

On hand

1

St. Louis:
Printed
Shipped

183,440,000
180,000,000

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

10,800,000

7,600,000

61,280,000

64,880,000

8,800,000

6,000,000

196,400,000
183,980,000

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

On hand

70,560,000

43,020,000

1

On hand
Minneapolis:
Printed
Shipped

61,680,000

1

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

Kansas City:
Printed
Shipped
On hand
Dallas:
Printed
Shipped
On hand

|

San Francisco:
Printed
Shipped
On hand
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.

Fives.

Cleveland:
Issued
Retired
Outstanding
Richmond:
Issued

Outstanding

*

L

Atlanta:
Issued
Retired
Outstanding




l

.

.

$12,602,300
2,295,600

$226,744,700
57,758,370

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

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

66,346,590

114,533,740

17,331,400

12,386,700

241,870,745

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

Outstanding

$7,602,000
1,288,900

35,220,000
8,029,555

t

$59,208,200
5,910,140

31,272,315

Outstanding
Philadelphia:
Issued
Retired

$98,325,600
26,490,&30

124,584,995

1

Twenties.

27,233,700

Outstanding
New York:
Issued
Retired

Tens.

$49,006,600
21,772,900

Boston:
Issued
Retired

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

82,400,050

Outstanding
St. Louis:
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

6,400,000

178,873,100

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

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

Outstanding

7,450,050

17,630,620

32,842,000

Minneapolis:
Issued
Retired

64,772,160

16,463,565

.

Outstanding

59,972,940

.

10,519,640

5,173,400

53,500

43,010,670

Kansas City:
Issued
Retired
Outstanding

9,462,460

.

28,522,330

35,090,360

47,651,540 I

3,686,600

5,366,500

23,180,000

42,555,900

43,438,600

3,800,650

6,165,000

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

W

119,140,150

.

W
H

120,317,330

.

Dallas:
Issued
Retired

X

W

C
O

Outstanding
San Francisco:
Issued
Retired

3
O

43.120,000

112,320,000

14,400,000

26,800,000

251,800,000

6,234,620

5,558,800

370,150

439,600

22,561,665

23,161,505

Outstanding

55,160,000

9,958,495

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

W
w

t—i
»—i

New York:
Printed
Issued

telX

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

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

d

11,304,000
9,405,000

160,000

H

On h a n d

%

Cleveland:

On h a n d
Richmond:
Printed
Issued
On h a n d




m

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
P0
On AJ.OJJ.VX
hand
0
00
o S a n Francisco:
1
Printed
cp
Issued

2., 828,000
1,868,000

2,400,000
1,960,000

2,000,000

1,512,400

1,760,000

10,528,000
8,236,400

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

On h a n d

2,140,000

1,136,000

960,000

.

1,160,000

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

374,800

340,

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

Philadelphia.
Cleveland
Richmond
Atlanta




43, 178,000
517, 450
742,900
165, 750
226,000
274,050
001,300
691,050
989, 850
240,820

Cleveland.
Received.

Returned.

Richmond.
Received, j Returned,

Received.

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

$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

Received.

New Y o r k . . .

Returned

182,800

15, 729,
2,173,

Atlanta.

Boston

Received.

Philadelphia.

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

15,019,535
3,344,960

Kansas City.

Returned,

Received.

$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

Received.

Dallas.
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

912, 722

Gold r e d e m p t i o n fund

,

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




933,914

824,218

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

978, 797

852,192

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

942,016

877,023

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

875,281

793,829

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

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

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

438

3,176,454 3,445,984 3,566,839 3,686,300

558,392

568,655

649,448

856,923

735

528

520,087

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.

\\

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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.]

Gold coin
Gold
and
settlement
[certificates.
fund.

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 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 long- ment short-) States
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

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

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

a
o

94,407

18..

3
3

84,803

10..

X

121,796

Oct.

Dec.

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.

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
et
circulation. tliio n —iny .
abil t

1, 793,479

3

8,000

18

1,033,737

417,526

3,236,486

71,938

1,134

239,829

1,421, 576

221, 728

30,779

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

Feb.

4,224

1,251,205
1, 779, 726 1,242,199
1,913, 912 1,238, 797

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
Mar.

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

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

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

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

C
O

7,980

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
June

*A

S

7,895

10

May

w
H

7,860

12

Apr.

Hi

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.




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

1
1

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

f
S
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 C
O
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.

,090., 932.96
$6,

$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

35,180

Total.
D o m e s t i c . 1 Foreign.

2,991

863

Trade acceptances.

350 1

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.

3 per cent
loan of
1918.

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

2 per cent
P a n a m a s of
1936-1938.

$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
,$50,000

50
6,400
915,100
640,600
1,882,500

$100
467,200
237,000
21,000
367,300

100

1,255,500

2,653,660

549,200
414,800

$2,378,200

10,300
2,581,000

1,768,000

$400

206,250

500

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
Total

15, 784,050




7,500

1,233,600

477,100

53,000

1,412,600

7,563,840

5,177,450

900

6,526,400

$17,196.650
7,563.840
5,177,450
29,937,940

7,101,950
8,268,010

3,221,000

1,236,450

1,969,000

3,612,650

2,397,000

1,491,000
1,444,000

1,887,990

11,769,292

28,050,000

3,378,000
1,340,000
1,784,000

4,496,100

1,500,000

51,847,182

26, 792,000

500

1,430,000

2,455,000

28,250

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

838,500

825,000

$2,194,000

8,849,090

" 27,950

U . S. certificates of
indebtedness.

4,493,000 $15,000,000
2,548,000

5,186,850

. 2,233,400

!

114,800

2,428,750

1,199,180

$728,742

3 p e r cent
1-year
notes.

7,006,600

427,400
1,153,300

1,080,000

Minneapolis

T o t a l U . S.
bonds.

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

177,624,720.00

$1,051,330.00
1256,765,000.00

$3,317,000.00
37,292,607.33

37,293,000.00

66,790,455.76

66,790,000.00

408,021.21

Gold with foreign agencies

408,000.00

2,010,961.70

2,011.000.00

37,412.406.54
408.021.21

325,566,000.00

41,018,000.00

Total gold held by banks

SI.051.W0.00
37,412,000.00
408,000.00
38.871,000.00

59,733,330.00

fund

59,733,000.00

274,392,165.00

27 fh 392,000.00

85,583,245.00

85,584,000.00

7,812,380.00

Gold with Federal Reserve agents
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)

7,813,000.00

25,000,000.00

25,000,000.00

7,900,000.00

7,900,000.00

624,958,000.00

108,564,000.00

Total gold reserves
785,881.00

Silver coin

43,038,200.00
35,268.85

149,024.10
notes, silver, etc

o
*j

w

>

2,288,000.00

*

H

o

w

47,570,000.00

1,668,000.00

110,852,000.00

Legal-tender

o
o

132,355,000.00
991,194.00
639,900.00
36,552.00

4,496,708.00

1,352,888.00

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)

O

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

>

w
o
w

1,384,900.00

5,325,500.00
88,049,000.00

O

W

353,000.00

7,416,000.00

128,851,000.00

10,033,000.00

157,181,000.00

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.

905,166,000.00

193,249,000.00

6,770,374.11
26,124,422.22
10,277,069.56
5,536,500.00

10,210,006.56
338,459.46
3,650,890.00
1,385,050.00
453.00

w
o
>

2,319,865.00

30,235,182.84
22,673,324.08

12,930,622.04
20,627,671.25
3,737,000.00

95,209,734.00
50,526,443.53
68. m, 000. 00

41,527,G84,40
12,029,710.01
196,764.000.00

90,853,000.00

6per cent redemption fund

I'J, 000.00

1,089,000.00

sOOO.OO

notes

1,322.37

7,349.94

481,201.77

2,803,100.SO

611,889.10

179,079.31

141,442.76

0,372.30

349.95

475, 00). 00

5,427.65

,

Federal Reserve Bank

320,100.00 |

70,407. G6

against

1,639,250.0.) |

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

Richmond.

Atlanta.

887,877.00
134,750.00
916.45

$257,802.00
864,852.00
4,309.55

$55,544.00
165,009.00
16,690.50

>
%

$1,127,000.00

$237,000.00

206,680,000.00

Total reserves

$223,000.00
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

97,72,5,000.00

5,733.68
4,275,119.00

Uncollected i t e m s
Federal Reserve Banks—Transfers bought, net
Other items

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
16,270,945.31

0, 981, 436.18
2,518,975.61
10,399,909.62

3,115,570.09
43,092,369. 75

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

;

:
j

290,000.00
1, 725. 73

Overdrafts—member banks
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
217,000.00
'

24,300.00

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 bills on hand




66,673,935.00
3,369,850.00

66,674,000.00
3,370,000.00

32,330,000. CO
55,868,410.00
4,948,850.00

73,000.00

89,257,000.00

53,118,000.00
240,000.00

10,498,637.45
43,419,233.65

226,970,000.00

7,293,087. 96

31,528,000. 00
17,000.00

17,345,012.35
53,918,000.00
62,881,000.00

93,221,000. GO

16,950,450.00
14,577,872.67

49,213,-300.00
3,904,341.50
110,171,000.00

55,869,000.00
4,949,000.00
93,148,000.00

2,450,000,00

98,758,687,50
11,412,539.34

$8,323,000. 00
23,774,000.00
233,000.00

33,055.00
38,620.00
1,170.00

1,280,876. 00
991,500.40
177,574.00

423,574,000.00

62,880,918.85

23,774,414,92
233,154,97

86,807,000.00

1,797,000.00

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

27o,803,000.00
15,151,000.00

$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

X

5
s
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 :

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

230,200.00 i

13,124,000.00
233,000. OQ

139,314.95 |.

20, 430. 73

10,897.39 L
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.




59, 430, 000.000'
317,000.00

212.90

B a n k premises
V a u l t account

Total resources...

2,031,500.00

421,793.10

1,300,811.88
21 719.53

L i b e r t y loans

317, 400. 00

o

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

$7,701,370.00
4,490,130.00
$5,722,000.00
6,923,000.00
204,000.00

$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
742,661,000

23,683,000.00
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

Total.

23,569,000.00

6,923,261.30
204,010.61

Gold with Federal Reserve agents
Gold Redemption Fund

Silver certificates, including clearing house certificates..
Legal tender notes, including clearing house certificates.

San Francisco.

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




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

36,279, 726. 68

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
X

w
H
O

596,250.00
27,859,099

2,461,009.00

, !W, 000.00
725,000.00

1,000,000.00

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

o
o

9,301,000.00 ;

91,370,000.00 j

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

140,350.00 j
17,420,550.00 !
9,701,860.00

2, 428,750.00

23,800.00
''
821,000.00 '

....

56, 280,000. 00 |292,196,466. S3
115,030,000.00

47,073,000.09

2,732,400.00

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

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 !

I 2,075,000 00 i
ll? 1.8 IS, 000.00 '

. lift,830,000.00 •

J 9,914,000.00
,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.
New York.

Philadelphia.

|

Boston.

!
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

!

\

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

!

i

$163,094,000.00

$95,976,172.85

Other deposits, including foreign Government

credits

1

1

.. -.

Total gross deposits

!

!

903,392.23

!

101,358,000.00

i

.

160,184,000.00

$66,740,000.00

975,220,000.00

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:
698,539.94
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

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

16,638.33
2,449.07

!

w

913. 58

D i s c o u n t profit o n b i l l s sold
I n c o m e , real estate

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

W

J

9,195.50

89,591.66

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

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

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

1

23.10

32.00

4,815,000.00
Total liabilities




>

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

72,499,000.00

266,519,915.00

j

123,620,285.00

14,147,660.00
589,720.00
.

150,997,770.00
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

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
22,159.86 !
519,526.06 j
134.294.01 !

51.81
22,055.31
900.25
656.1"5 02
I

24,961.80
512,532.58

122.829.16 |
232,431.94 |

58,514.53
574,653.12

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

1,101,434.14

a
w
w
J>

3,411,896.56
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

H

46,886,000.00

.289,488,000.00

w
O

H

201,070.66
1,329,000.00

$2,931,000.00
38,000.00

2,121.10
63,000.00

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

2,692.32

Collection charges
S u n d r y profits
Difference a c c o u n t

Total




!

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 |

$33,499.35 j
718,210.98 \

$6,732,000.00

Total liabilities..

754,084,000.00
Kansas City.

>

2,878.74
86,574.41

1,165,727.07

All other liabilities, net.

d

$16,659.09
318,330.24

627.94
8,551.80 ;
404,837. 60 \

1,570,475.15 !

Total

Minneapolis.

St. Louis.

Dallas.

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

w
$80,767,000.00
1,134,000.00

67,317,512.25
320,628.85

400,539.85

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

50,967,818.64

w
o

10,451.76

5,450,293.54

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
|

5,982,943.13

Miscellaneous
Collection items

259,>TA02

:

including

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,

5, 129,177. 55

!

Member and n o n m e m b e r b a n k s . .

Other

4,194,489.90

17,434,210.00

B r a n c h e s a n d offices
"

235, W0. 00

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

\

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:

SO, 204,000.00

120,317,330.00

,110,285.00

770,S20.00

140,285.00

542,365.00

7.872,040.00

Total deductions

1,495,050.00

7,101,220.00

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

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

\2,109,791,000. 00

8,000.00
Total gross

2

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.

$157,982.45
Interest earned—United States securities...

>

*

All other liabilities—Continued.
$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

\""

!

24,597. 79

""""i
!

!
i

!
11,576. 59

.

694.68

i

23,493.43

!

;

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.

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

Total...
Percent

$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

Boston
New York
Philadelphia..
Cleveland
Richmond....
Atlanta
Chicago
St. Louis
Minneapolis..,
Kansas City..
Dallas
San Francisco.

32,767,263
8.5

32,601,304
8.5

25,885,110

46,017,346
12.0

Per cent

383,901,215

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

2,753,248
1,163,793
1,220,015
550,671
4,028,408

Total
Per cent

Federal Reserve Bank

Boston

August.

September.

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.

Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

,

$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

Philadelphia
Cleveland




41,036,805 1
5.4

4,204,190
1,040,431

920,658
420,032
529,153
844,740
571,279
270,484
681,602
122,821
032,327
589,122
234,429
542,458

New York

Total
Per cent

3,788,150 1
2,682,453
3,406,337
683,802
2,441,573

38,371.969
5.1

St. Louis
Minneapolis
Kansas City
Dallas... ¥
San Francisco

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

4.545,130

0, 925,090

6,414,016
6, 543, 820

Go,848,983
49,113,554

11,807,573

6, 208,375
9,123,176

4,560,808
5,459,295

4.2

5,083,990

11,767,478

Total....
Per cent.

6.230.006

7,908,969

Kansas City...
Dallas..
San Francisco.

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
,- )

..

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

Dallas.

July.

June.

May.

$2,992
63,394

New York.
Philadelphia..

S t . Louis
Minnpauolis

April.

$357,896

$134,607

Chicago...

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.

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

Total....
Per cent.

$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

Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.

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

o
o
00

Total,
Total,
Total,
Total,

o Percent,
I Percent,
«p P e r c e n t ,
Percent,

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

1918..
1917..
1916..
1915..

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

;

23,324,475

San 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

80,154,716
237,690,76S

941,441,337

T o t a l , 1916.

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

$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

39,752,933,847

T o t a l , 1918

52,052,600
102,981,206

T o t a l , 1915.

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

9.9
30.7
9.6




14,308,800

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

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
16

>
>.

Michigan:

1,499,921,400

20

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 accommodated
each
during
State
1918.
o n Dec.
31,1918.

to

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

Massachusetts

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

73

43

124,735,342

555

407

24,181,383,095

102

308,313,282

78

55

86,843,370

230

157

395,156,658 1

22

Total

152

13

11,660,600

Illinois:
District N o . 7

Total
Indiana:
District N o . 7

Pennsylvania:
561

389

311

100

1,735,094,298
555,474,714 j Missouri:

872

489

2,290,569,012

Total

>

ir1

278

9

Total
Ohio




416

184

790,608,920 1

District N o . 8

Total

151

212 760 42

95

54

763,274,258

57

District N o 3

30

361,055,504

152

84

1,124,329, i62

•••

•

••

•

—

W

o

Kentucky:
District No. 4 . . .
District No. 8 . . .

74




35

39

22,590,613

88
93

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

Total

187,059,493
180,557,983

New Mexico:
District No. 10.
District No. 11.

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
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

91
21

|
1
j

Total

4

4,547,475
18,043,138

159

Total

Louisiana:
District No. 6 . .
DistrictNo.il.

116,059,833

103

Tennessee:
District No. 6 . .
District No. 8 . .

Total

- 72

120

District of Columbia
Maryland
Virginia
North Carolina
South Carolina

Mississippi:
District No. 6 . .
District No. 8 . .

80,572,946

13
107

Total

Georgia
Florida
Alabama

40

113

Total

35,486,887

C9

West Virginia:
District No. 4 . .
District No. 5 . .

32

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
j

,

Grand total..

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

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

Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

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 .

January.

February.

March.

April.

May.

June.

July.

$6,969,158

$8,867,600

$17,896,650

$21,114,273

$34,044,207

$106,522,346

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

New York

$7,563,000

191,983,003

Boston

11,464,060

14,979,600

84,438, 743

99,401,208

103,454,327

141,301,187

Philadelphia..
Cleveland
Richmond
Atlanta

6,966,550

7,151,900

20,243,300

29,883,500

31,289,252

37,385,919

2 108,545,995

19,221,528

99,212,310

127,953,684

148,643,204

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

d

324,747,385

9,363,100

Minneapolis...
Kansas C i t y . . .

3,375,000

i 183,385, 475

Chicago
S t . Louis

>

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.

o

September.

August.

Federal Reserve B a n k s .

Total.

$89, 718,196

$204,586,223

$256,833,350

$258, 784,085

$333,244,550

SI, 346,143,638

1,997,927,111

Boston
New York

2,632,741,590

3, 413,824,359

2,637,805,627

3,694,340,744

8

21,810,005,187

Philadelphia

91,960,382

128,695,908

163,310,194

286,310,717

447,382,929

1,329,253,568

Cleveland
Richmond

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

55,904,162

84,194,425

124,004,750

112,142,108

116,963,950

629,504,816

282,286,380

Atlanta
Chicago
S t . Louis

340,547,274

429,772,433

287,513,473

217,725,950

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

Minneapolis,

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.




•72

2,569,555,091

2

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 .

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

.

February.

$1,681,761

Philadelphia

$623,541

4,934,254

...
. .

11,123,967

118,747

Cleveland

.

Richmond

.

Atlanta...

"...

2,200,071

801,209

.

120,612

1,847,172

. . . .

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

553,436

314,103

264,744

1,142,274

868,740

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

1,397,180

28,039
670,674

213,950

790,762

Minneapolis
K a n s a s City
Dallas

128,167

1,108,623

Chicago
St. Louis

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
Total bills the Federal| New York
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

&

F
b

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

*

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/

Cd\**

*--**VL/

yy

y

'

N

y•**—

N

X
N[/

//
3axr\

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^-—^

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

March.

April.

May.

June.

July.

August.

sptem
Septem- October.
ber.

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

72

174

276

304

399

395

291

211

197

161

580

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

Total...

88

106

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

3,230,000

12,790,000 J

Per cent, 1918

10.8
17.3

16.5

Per cent, 1916

12.5 ,

17. .3

Per cent, 1915

12.2

19.7

64,845,000

8.6

Per cent, 1917




100
100

1
!
1

1

5.0

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

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.

1918.
1917.
1916.
1915.




32,048,198

38,442
2,980

27,790,408
36,441,035

T o t a l 1915

$9,603,000
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

52,808

Total
Total
Total
Total

T o t a l 1916.

$20,617,180
70,640,679
28,152,038
41,312,691
82,544,372

284,002

9,057

Over 90
days.

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 o—
f

New York.
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

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

i

1
1

7
8
16

29

1
|

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

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

1

!

i

1

i

!

i

1

i

I

i

!

1

I

i

'•

i

1

!
i

|

<
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

|

!

!

'

;.......

. . . . . J 3 4 , 1 6 8 . 0 0 6 |.
. . . . . ! 4.3*52.313 L

!

J u n e 27

635,000

...do

652,719

...do

.770.350
822.777

...do

July

...I.......,....1
i
\

1.862.0(54
1.934.745
3.924.137
3.439,777

2J

July

5 ;

'

;

July

9

!

!

|

J u l y 31 |

|

|

\

!

Aug.

1

Philadelphia.

;

Aug. 2

Cleveland

!

7.500.002

l

^9. 984.139 |

W

...do

New York

Aug.

3

Boston

Aug.

9

New York

...do

Philadelphia.
Cleveland

...do

;

Do

;

A u g . 13 J
!

A u g . 24 |

Philadelphia.
Boston

A u g . 27

Philadelphia.

...do




•

!

A u g . 30 |
l

:

i

I

1.999.226
2.928.052
$5,000,000 |
2.498.478 I
7.498,881

|

"

:

'

! 1.352.500

H
O

'A

3.703,200

! 1.350,750 |

>

3,702,000 I
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
Oct.

Discounted
bills.

Purchased
bills.

|

20,012,723

1

4,973,583

Chicago.

...do....
...do....

i

i

2,025,237

Philadelphia
Cleveland

j

4

Oct.

8

1

...do....

!

j

i
i

!

K a n s a s City
Cleveland
Richmond

...do

Chicago
Philadelphia

...do

Cleveland
Do

...do...

Philadelphia

...do....

Chicago

.. d o . . .

Minneapolis

j

...do....

...do

Philadelphia
Cleveland
Philadelphia
Cleveland




Oct.

14

i
I
1

1

'

!
1
!

!

$1,750,000

200,000

1,800,000
1,000,000

'

2, 500,000

i

5,083,423
5,115,575

...do....

5,111,724

!
!'

1,000,000
1,717,500
2,500,000
3,(20,000

!

i
15,281,831

2 500' (.CO

I

j
i

6

Nov.

1

j

O c t . 23

1

$250,000

!

i

O c t . 21

Nov.

I

1
331,176

...do

$5,000,000

!
I

Oct.

1,173,353

i

i
i

:

8,815,110

S t . Louis
S a n Francisco

Discounted D i s c o u n t e d
bills.
bills.

Purchased
bi.ls.

I

3

. .

Discounted
bills.

Purchased
bills.

Dallas.

Atlanta.

$10,108,157

..

.

Richmond.

Philadelphia.

Purchased
bills.

...do...

Kansas City
Boston

New York.

i

i

|

1
I
1

2,500,000
2,500,000
j

!

I

:

'
1

!

.
i

]

|
2,500,000

Chicago

[

2,500,000
5,000,000

!... do.

Minneapolis
Cleveland

...do.
...do

!

;

;

:

N o v . 14

Chicago

j

i

...do....

Minneapolis
S a n Francisco

!

...do....

Minneapolis
Cleveland

...j

| 5,C005CCO

. !$10 022. 209

N o v . 13

New York
Do

...do....

20,118.746

X
5,0C0,CC0
5,COO,COO

N o v . 15
N o v . 18
...do....

New York

O
•d

N o v . 20

S a n Francisco
Chicago

$3,514,000
10,069,500 j .

...do....

Minneapolis

-| $0,564,409

...do....

Cleveland

...do....

10,056,775

>

$25,223,947

M

O

%

647,706

N o v . 21

5,353,000

N o v . 26

Do

5,000,000

Dec.

2

Dec.

3

Dec.

O
5,000,000

..do....

Minneapolis
S a n Francisco
Minneapolis
Chicago

2

10,609, & 5
5,000,000
7,500,000

Do

Dec.

3

Do

Dec.

5

>

$3,040, 880

.do.
...do....

5,001,000

Minneapolis
S t . Louis
Chicago

.

Dec.

10,024,077

D e c . 11

D e c . 13

Minneapolis

..do....

w
w
>

Dec. 17

Chicago

6,032,000

D e c . 12

Do

50,100,201

Dec. 10

Minneapolis
S t . Louis
Chicago

m
w
&

2,000,000

6

Do

s

1,801,066

N o v . 19

Minneapolis
Chicago

s
2,500,1X0
2,500,000




5,000,000
N3,573

10,016,500

2,500,COO
5,000,000

..do....

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

i

Dec. 27

Minneapolis
Chicago

!

>
Purchased
bills.

D e c . 30
D e c . 31

Do

Discounted
bills.

Discounted
bills.

$5,000,000
So,030,525

!

1
1

i
1

1

$5,000,000
5,COO,000
6,000,000

>

!

Boston.

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

Purchased
bills.

Discounted
bills.

Cleveland.

i

I

Richmond.

!
i Discounted
bills.

!

1
i

5,016,453

Atlanta.
i

Purchased
bills.

!
!

'

I
i

!

April




Philadelphia.

H
ffi
W
d

Rediscounted or sold by Federal Reserve Bank of—
j
j

o
w

o

MONTHLY RECAPITULATION.

1918.

W
W

H

1

$10,015,600

!

i

...do

Do

Dallas.

1

D e c . 26

>

Atlanta.

Purchased Discounted Purchased
bills.
bills.
!
bills.

Minneapolis
Kansas City

CO

o

CHRONOLOGICAL TABLE—Continued.

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

11,160,723
7,405,200

September
October

2, 703, 250

6,564,409

$10,887, 500
35,422, 500
33,532,000

$450,000

3,514,000

31,946,423

August

3,880,846

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—
Chicago.

St. L o u i s .

Minneapolis.

K a n s a s City.

Purchased
bills.

1918.

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.

Minneapolis.

Chicago. S t . L o u i s .

5,426

Philadelphia

12,927

15,137

19,68S

Cleveland

40,473

34,619

13,706

27,371

S t . Louis
Minneapolis
Kansas City
Dallas
S a n Francisco

5,037
14,370

20,079

9,984

2,000

19,898

6,709

13,189

5,000

67,681

50,182

4,999

8,718

331
2,514
S3,298
4,551
7,535

.'.

6,994

66,365

'42,321

17,499
24,044

22,931

137,115

54,199

82,916

331

5,000

7,500

4,168

!

!
12,218

13,065
2,000
15,005

13,551

•

!

I

5, 000
1,000

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

2,514

i

24,996

24,996

1

8,530

103,925

8,530

loo, r 30

2,995

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

1
!

i
1

7...T7
12,500

1

31,000 !
5,000

3,006

120,297




28,500
2,500

1,468

12,542
8,242
7,158

4,362

5H, 955

|
Total

San Francisco.

2,498

6,620

Atlanta

Dallas.

Discounted
bills.

331

20,119

Richmond..

Kansas
City.

12,499

5,000

New York

Chicago

Purchased
bills.

Total.
New
York.

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.

May.

June.

5, 747, 450

3, 445,000

60,000

$509,525

2,350

50

4,305,000

5,556,800

6,943,100

9,991,000

Richmond...

$300

$2,623,950

1,250

1,045,000

August.

July.

14,060,000

$155,000

18,000

Cleveland
Atlanta
Chicago
St. Louis

February.

$245,000

$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

167,000

12,650

91,000

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

96,000

1,000
31,750

15,400

7,646,600

10,973,050

12,274,250

103,900

4,159,700

11.53
32.59

25,050 !

15.05

1,137,500

14.83
.14
.01

19, JS2.250

7,924,900

26.33

9.72

40,985,760

.13

50. 27

8,520,400

615,650

28,200

11,450 !

1.187,240

29,500 !

91.950

1,394.950

8,200 !

2.050, 600

1 OH, 950

1,305,750

93,550

36. *5Q

190. 400

i 1,546,946

21.3W.-S20

.14

105,950
20,830,650

1.39

11.51
.04
.12

.75
1.46
1.71

2.142.600

20. 830,650

T o t a l , 1917.

5.10

.80

650,050

35,000
61,000
10,950

1.74
9.38

94.000

10,900
100

100

10,850

i SI, 418,116

3,900

$78,050

50

$8,529,063
24,119,000

T o t a l , 1918.




$800

§1,222,350

1917.

.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.

\ ;:
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

100.00

100. ^0

No. 35.—Amounts cf United, 'states certificates of indebtedness purchased by Federal Reserve Banks during each month in 1918.
January.

Boston
New Y o r k . . . .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Total....

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

$71,858,000

561,199,500

3,272,000

18,451,000

1,000,000

2,338,000
0,167,000

2,000,000

30,221,500

8,497, 500

3,000,000

82,500
52,500
750,500

3,565,000

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.

Boston.

New York/ ^ j j f 6 1 " j Cleveland.

Richmond.; Atlanta.

Chicago. | St. Louis.

!
August
September
October
November

Total

$3,750,000
1,000,000
2,000,000

!
$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

j

i

Si, 886,000
499,000
1,500,000
3.SS5,000

Treasury

1

Kansas
City.

Dallas.

San Francisco.

Total.

|

$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

Minneapolis.

14,167,000

$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
O
1,998,000
1,000,000 2,000, C O 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

State.

All o t h e r , j

257,546.900 S

$10,000 |

$2,039,591,682
30,509,109,901

10.000

1,978,466,646
1,766,465,316

32,722.900 !.

20,756,100

40.238.350 !

116,295,060

2,263,333,762

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

H
O

266.873

1, 016,112, 678

130,197,843

1.000.000

3.536,026,327

632,130,411
217,518,606
119,026,868

96,090.900

Dallas

o
w

700.000 !

6.568.000 >.

87,570,500

312,020,076
461,045,246

1.117,801,374

$300,000

543,785,279

11.131,200

859,342,349
SV2. 20$

:

635,746,546

174,175,809

47,414.530,717

H
W

271,137,854
94,216,141

1.148.748.857

382,208

>

$443,992,608
7,018,633,903
323,225,480

152.229 '

114,644

2 146,389,060 \.

6.568,000

$50,521

$50,521

i T o t a l , 1917.

Total.

10,197,320,845

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.

Secured b y
G overnmcnt
w a r obligations.

T r a d e acceptances.

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
33,390,079,891 187,372,579
a 5,884, 160,624 37,771,132
5,212,300

July
August

December
Total, 1918
T o t a l , 1917
T o t a l , 1916
T o t a l , 1915

$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
i 6,175,481,377

.. .
1
2

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.

£1,094,100

13,067,400

1,327,650
745,100
$405,000

$13,243,538

1,679,300

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.
indebtedness.
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
415,800,500

428,848,250

41, 700

21,797,000

22,938,700

257,600

30,221, 500

10,950

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

200,257,325

6,717,000

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 .

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

November.

October.

September.

December.

Total.

$69,044,935
104,500,085

1918...
19171..
1916...
1915...

$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

San F r a n c i s c o .
Total,
Total,
Total,
Total,

1918—Continued.

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.

Total
credits

734,

Net
credits

31,784

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.

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

Balance
i n fund
at
close of
business
Dec. 31,
1918.

37,295

.•507,

.....
.....
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

11,369
85,000
21S, 722

I

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

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

41,000

203,297

244,297

22,000

251,710

273,710

916,561

74,000

271,157

23,900

345,157

39,652

16,000

162,147

40,330

43,837

13,337
24,330
1,422

J a n . 31

642,158

96,140

738,298

56,000

208,438

264,438

24,217

Feb.7

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

51.
16.
46
98,
8.
20
32

39,903

F e b . 28

587,027

35,000

622,027

Mar. 7

771,168

85,000

856,168

Mar. 14

661,936

11,330

673,266

Mar.2l

696,825

37,000

733,825

221,385

221,385

73,991

34,000

213,710

247,710

14,395

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

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

J

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

'

7,247

54,279

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




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
ZHDAR YEAR 1918.
DURING THE CALL

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! 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.

19,334

.
....

18,231
373

2,14S

S.
10
23
June

370

31. . .
6 .. . .
13..... . . .
2 0 . . . . . ... . . . .
27




2,434
1,538
2, 644

7,105
620
1,313

2,908
6,307
8,961
6,446
7,460

24,858

fc
1,081

2,220
9,87-1

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

5.916

3,668

402

16,254

40,862

17,819
10,472

2,911

9,098

11,395
22,664
9,034
1,102
38,329

2,194

1,250

3,910
1,020
10,604
3,349

37,494
15,443
7,527

2,553
4,023

8,921

12,559
9,682

33,382
13,324
27,213

27,245

24,097

6,316

5,008
5,161

14,39 6

5,009 .
11,830

7,247
54,279

7,635
2,513
. . .

36,910
46,189
10,161

5,958

.

10,869
19,004

2,522

3,834

1,006

2,106

11,249
10,314

...

6,715
2,206

3,108

3,616

3,831

33,972

642

4,971

8,982
1,899

3,597

2 ? 348

6,167

6,868

8,522

10,614

25
2

5,367
333
3,354

1,141

3,379

15,697
363

3,500

269

833
10,533

14,158

16,605
22,742
29,722

5,402

13.

8,009

3,062

2,593

!

3,629

920

22,705

5,853

2,837

41,366

10,523
40,123
11,494
7,403
77,991

7,538

7
14
21

23
Apr. 4 . . . .
11

May

3,736

10,134

28
Mar.

4,156

18,970

8,217

1,915
2,704

u8,988

4,974

52,422

12,066

7.,

23,801

10,586
40,330

4,135
12,750

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

9,111
1,327
4,831

7,712
3,657
14,335

1,921
1,404
10,779

651
7,671

2,110
33,603

4,738
3,983
5,654

2,415
7,049

47,015
28,041

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

23,988

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
87,834
2,333
8,374

7,944

26,677
1,077

5,665
3,818

5,525

1,431
1,379

62,973

23,834

9,461
5,574

249
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.

Mar.
14.
28.
4.
11.
18.
25.
May
9

i

31




3,336

10,149

1,710

17,763 I

2, 485

20,851

4,682

14,277
2, 253

1,322

3,031

175

3,923
8,561
4,259

2,606
4,018

2,369
4,752
2,548
589

11,050

6,925 I

6,575
2,439

4,010
3,027

11,473

4,283
5,570

10,201

2,641

7,130

1,259 |.

6,412
1,952
2, 444

1,861

5,687 j

4,260

308 I
3,617 j
6,284
700

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

!

214

2,409 J

22.670

10
23

1,396 i

160
2,284
1,313
289

1,036
3,705
5,905
2,200
5,971
4,051
2,140

21.

2,472 j

4,776

4,361

2,844

8,782
184
3,715
1,238
4,372

23.

1,414

752

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
20

14,738

13,530

5,258
1,067
1,945

1,349

3,667
8,903

1,925

5,925

8,370

4,701

3,888

5,313

110,130

2,892

27,285

7,146

03,088

279
168

94,251
49,500

7,696

72,874

5,593

1,007

22
29

6,289

3,190

10,778

1,628

12,464

7,323

17
.....,_.,,

29




333

16,559

Q 006

138 <

8,033 !

3,301

7,777

40,070

4,737

46,562
41,770
09,950

27.933

89,128

4,097

3,331
13,429

73,719
92,585

1,54S

42,246

2,038
18,475

7,377

35,257
39,310

9,578
j

20,270

5,975

9,478

7,486

3 124

2,822
7,352

078

7,585
13,087

1,353
1,227

3,766

18,501

14,621

1,532
2,804

7,758
1,641

3,833

2,915

Co,580
91,024

2,001
0,097

3,850
11,058

8,899

6,877
380

7
U
21

3,863

9,495

1

10.586

265

4,917

54,311
2,236

2,607
8,159

4,974

1,097

82,473

41

690
6,641

2,324

3,419

3
10

3,736

7,720

2,330

4,479

23

24
31

2,324
388

3,787

19

7,471

10,061

1,749

Sept. 5
12

Nov.

58,134
106,094

5,244

15

Oct.

4,003

6,758
1,414

25
1

1,170

25,853
71,518

7,561

2,041
2,744

8

Aug.

2,999

872

13,902

1,343

59,413
I

4,139

G,497

422

7,707
3,213

17,570

3,953

1,405
3,993
3,170

12,588
22,055

18

1,106

1,661

9,599

5
11

6,327

2,003
10,556

27
July

10,450

12,989
5,041

13

129

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
e
l

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

34,775

70,409,275 451,093
5,575,652 32,258

Number.

Amount.

195,819

Cleveland

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).

Boston

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,

714
2,631

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
Federal Reserve Bank,
depart- handled. thousand
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
depart- handled. thousand
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

OT

O

1 M

^
3

-'4

\ti

£}•£

r^

»-l

S*.

a
s

o

£

^
i s« ^
"°'£
J * OT

1 g5

3

||3

S

'£

C
P

o

PhiladelCleveland.
phia.

-1

M

5 'o

Lo-£

rO-£

r^5 J-,

r

0

OT

,o ^

a*,
as
3
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,

^

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

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

S

962 1,527
960 1 1,529
960 1,535

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
a
o
S
i 8
i «
o
o

Jan.15

1,128

S^j j3

«3

S^

xn
X
fl

M

3

C3 o

& *
,M 1,109

^

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

&

€
3

C3

©+j

P
^
t/5

© -*»
-*J

P

%

s

a
.<

PH

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

Philadelphia..
Richmond

Minneapolis...
K a n s a s C it v . . .
Dallas
3 a n Francisco.

469
824
497

W

s

350
New York

sk

'•$

a

97.03
60.91

$136,172,500
723,314,500

.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

34,502,000
159,875,000
46,194,000

a

p

193
182
200

P

75.40
91.92

§

a
$72,472,500
407,380,000
61,990,000
60,636,500

th

*©£

1
70
71
118

S3

a
«*

p

P
M

17.16 $5,709,000
39.66 '10,660,000
45.56 8,685,000

50,566,500
499,345,000

Vi

82. S2

189
18

325,3.55,000

20,281,500

189
18
164
502

23,145,000

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
75,829,500
79,573,000

78.22

095,060,500

a
*<\

8
14

176

77.42

tt

40.52
59.16

14

72

(^

p

fit!
P © f:

96.14

713,500

2.740. .500

u
©

1,743

49
8

8,593,000
22,790,500

-+<

°'3*u gB
$ ©•=;

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 ©
*H P

12
$63,000
170 23,720,500
14S 2,505,500

219

119

-^.9

8
P

©

P

y

8

.C

-u

I s

9 ti

V

32,46.8,000
33,781, .500

Total.

tr.

.9

03
•*> ©

p

«~*q
©•5

t>i

c

8

t-.

\ P.

y

0>

C

OS

+^

i
a
<

a
p

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

13 |

725

53.65

13 j $381,152,500

1,169

95.82

143 'l, 680,989,000

9 100.00 : 5,129,000

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
843 | 87.10 20,529,000

88.99 ! 29,310,000

$82,000

143 |44,149,000

175

69.04

42.31
81.71

37,741,000

80.48

968,705,000

1,994,500

1,549

62.85 88,102,000

15

156,963,000

82.12

26

127,560,000

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

11,085,000

90.56

54 ! 2,490,000 | 3,361

4,877,500

179,000 j 2,801

26 i 4,8S6,500 | 3,017

194 j 83.98

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 I 25,314,736 ! 4,357,740 j 5,226,864 j 2,979,048 I 2,293,058 II 8,481,
I




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
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.

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.

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 < 3 22bRM >2'>7Q,048 *2 ">' ° ^ ^ *s1 ?<7 ^<>7bS.s ^ < t° °"4 ^3 * >1 ^3b <VV 0 ->2h *l 1S7 78" ^ 7 >M 1i7
5
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 .
$25,581
189,462

B a l a n c e as reported J a n . 1, 1918
"$4l"622" "$170'933*

$85,7S4

$9.065
82.721

$44,499
57,532

"$89*840 "$172," 365*1

$29,501
30,476

$13,750
46, 710

$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

Total
Charged t o c u r r e n t e x p e n s e or profit a n d

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

-.

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 <e Safe Deposit Co
f
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, " 3°, 201
5
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

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
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

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

500,000
600,000
1,000,000

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 <c Trust Co
f
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 <c Banking Co
f
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 <c Trust Co
f
City Trust <t Savings Bank

100,000
25, 000

50,000

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

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

!
j

"*5o."666'

1,500,000
' 200,000

I
I

20, 000

125. 000
50;ooo

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

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 <c Trust Co
f
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

750,000

225,000

5,805,014

"40,000

Total

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 <e Savings Bank
f
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 <e Savings Bank
f
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 <e Savings Bank
f
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.

$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

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

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

$200,000
100,000
125,000
50,000
25,000
30,000
50,000
30,000
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

Total

$55,000
25,000
15,000
6,000

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
 of Sevier
State Bank



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, conservator of the property
of persons incapacitated by age. 3
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 and
bonds, guardian of estates, assignee, and receiver.1
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
of lunatics. 3
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
of lunatics. 3
Do. 3
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
South Bethlehem.. .j South Bethlehem National Guardian of estates, assignee, and receiver and comBank.
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

V est Virginia:
V
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
bonds.




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.
1915

Total

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

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

1916

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

4
47
5
9

1
1
1
6
88
10
57

6

9

73

Total

173

1
1
2
8
287
15
108
6

1
1
4
17
892
42
446
8

213
34
52

1
1

$16,000
30,000

228

$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

$10,000
20,000
10,200
15,940
9,360
24,180
7,140
14,672

$10,000
20,000
37,000
137,740
47,540
79,560
7,880
102,240
32,080

199,272

12,

423

$10,000
20,000
21,250
34,084
18,080
47,790
8,060
23,160
16,848

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).
1
1
6
21
15
73
5
70
19

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

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

1917

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.

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

11,134

20,985

$10,000
24,000
33,500
47,880
9,520
49,280
13,800
215,930
61,130

96,560

18
155
24
124
11
292
189

364

Total..

$10,000
20,000
14,000
21,426
4,100
8,700
7,200

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).
1
1
13
117
11
60
5
126
51

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

$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

$7,500
10,000
8,800
4,500
18,780
4,380

13,460
55,640

153

$7,
7,
6,
6,
10,
4,

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

$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

63

$7,500
10,000
11,000
17,140
1,620
2,100
7,400

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

Houston, Tex
Shreveport, La
Durant, Okla
Fort Worth, Tex
Wichita Falls, Tex
Paris, Tex

Do.
Dec. 31,1921
Dec. 31,1920

Dallas, Tex
do
Abilene, Tex

Frank Kell
J. J. Culbertson
Class C;
W. F. Ramsev
W. B. Newsome
II. O. Wooten

Dec. 31,1921
Dec. 31,1920
Dec. 31,1919

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

Own
currency.

$11,351.00
442,991.94
39,134.16

27,000.00

14,287.50
438. 00
80,908.50

247,000.00
100. 00
920. 97 44,439,014.99 1,322,906.00

20,286. 41
8,708. 00
606,701.67

370. 00
4,445,183.00
V nited Kingdom
Other European points
Total E u r o p e . . .

United
States
currency.

5,000.00

Other
currency.

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

4,501,769. 47 50,241,855.13 3,005,236.00 1,224,807.18 4,891,877.44 63,865,545.22

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

Other Asiatic p o i n t s . .

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

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

17,506,422.95
285,000.00
695. 00
15,551,031.35
2,206,105. 24
400.00
4,342,149.57

Chile

10,306.00
400.00

216,200.00
1,299,786.94
Other South

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,

17,353.60
43.60
1,321.00
3,296.70
192.25
5.00
71,600.00
1,159.00
1,202.00

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




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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



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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
in the system.



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




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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.]

T o t a l cash
reserves.




Federal
Reserve
notes i n
a c t u a l circulation.

(2+3.)

1
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

Net
deposits.

R a t i o of
cash reserves t o
net
deposit a n d
Federal
Reserve
n o t e liabilities combined.

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

253,196,771.66

Liability for rediscounts with other Federal Reserve banks.

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

I
y

no

150

y

HO
130

I

90

60

['9/8

IV

v V
A

1

-J

V

^ / ~\ i
V

1
-7 '

/

V

r
i

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

70

130

I

Millions

Millions

\

160
ISO
140

1

J\

700
Dollars.

no

\

/
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

Amount.
1918

1917

9
40

$229,553
2,020,406
60,733
499,881
597,664
54

3,408,237

279,430
1

1,690,898

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

250,000
258,670

24
101
8
50
45
228

1918

$525,200
377,598

2
3

1917

Amount.

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 reserve.
deposits. circula- liability. 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

A

J30

^

140

\

140

130

\k

\j

120

v\ k\

110

'

100
90

i
^

80

<§
o

V
\f] \A,
V

I''

/

r

•A

60

r-t

•**s

SO

v /

%

V

/''
\

/
/

90
V

1917
A

80

1

t

.---/

V

r"\ / V \ ;

i

70
60
50

V

V

100

\

y\

\.._/

%

110

\

' \

70

•|

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
N UA ^A
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

Net gain
for month."

190,913

1

2

Does not include direct transfers.

$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
43,915,000
17,019,000
3,306,000

31

65,971,000

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

385,395,000
134,214,000
14,675,000

Total

Capital 2surplus.

$16,789,000

22
3
4

Number.

551,073,000

1

Figures from 1918 edition "Trust companies."

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...
Do... Webster & Atlas National Bank l .
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 Bank
Do... Canal National B a n k l
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.
Required
reserve.

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

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.

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.

4

Apr.22
May 9
M a y 28
J u n e 18
July 9
J u l y 18

i

Total

$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

J a n . 22
Feb.8
F e b . 27
Mar. 20
A p r . 10
A p r . 20

214,417,000

185,024,500

42
46
43
33
27
32

F O U R T H LOAN CERTIFICATES.
$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

Oct. 25..
Nov. 7..
Nov. 21.
Dec. 5...
Jan.2...
Jan.16..
Jan.30..

381,152,500

352,784,000

F I F T H LOAN CERTIFICATES.
$47,901,000
45,010,500

$44,200,000
40,400,000

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

4£
41

$52,000,000
43,300,000
95,300,000

May 6
M a y 20

Dec. 5
Dec. 19

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.

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
1

$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

54

1237 153,293,000

40

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

35
37
45
40
37
41
47

T o t a l . 1381 207,115,500

Total.

1

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

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
1,548,500,000

Total

$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

Date.

Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.

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

1,586,000,000

SCHEDULE 25.—1ledeposits

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

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-

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Jan,

Feb.

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Apr,

May

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July

CHART I
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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.

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Feb.

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Apr.

May

June

July

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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
payRedeMember Loans
banks
ments
posits
Payand
Certifi- reserve
on 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

Total

$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.

Pieces.
759,726
384,967
42,096
162,838
6,425
8,396

,

Total

Pieces.
2,560
4,923
1,159
1,185
140
212
24
8

1,364,447

$50
100
500
1,000
5,000
10,000
50,000
1)0,000

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

191

Amount.

4
27
17

Total
Central opinions r e n d e r e d :
P u b l i c service
Municipal
Industrial

Disapproved.
Number.

$276,000
770,775
1,115,225

2
5

48

2,162,000

7

404,800

49
45
97

Total

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

Amount.

Applications transferred.
Number.

Amount.

$34 800
370,000

Amouut.

4
3
15

Total

$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
States United
'deposits
N u m - certifiloans
with
T i m e GovernStates United
Cash in|
on
ment
b e r of cates of securi- S t a t e s m a n d
Federal! v a u l t .
w h i c h p odsei- s .
deb a n k s . indebtt
b o n d s i n v e s t - Reserve!
ties
reserve
posits.
ments. 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 .

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
January
February
March
April
May
June
July
August
September
October
November
December

.'
:

Total




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

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

Total

$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,
January.
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


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,

4-4f

41-5

6
4-4.38
4|-5

December.

6-6

A -A T ,

6
4.22-5

November.

6-6

6-6

5J-6

5f-6i
SHHfc

5J-6

October.

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

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

June
July
August
September
October
November
December
Total

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

January
February.
March
April

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

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
Average




$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.
1917

Total
1

1917

1918

$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

June
July
August
September
October
November
December

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

January
February
March
April

Excess o p imports.

Imports.

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
305, 674.14
3; 713,
2,948,291,085.09
402, 840.07
3,918,
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..

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

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

Total..

$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
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.

National
banks.
14
128

State
banks.

Trust
companies.

Total.

32
448
480

New Jersey

TotaA

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
development along these lines will occur during the coming year.



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 _ _ _ _ JONg
MAY
_
""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.

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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.
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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

510,701.32

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

360,350.01

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

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-

51,748,204.21

294,061,002.88

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

424,251,433.36

3,023,724.56
2,317,692.39

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

972,311.62

905,216,288.63

Total investments

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

T o t a l o t h e r liabilities




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

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

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 . . .

78,986,137.26

975,219,452.18

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

T o t a l liabilities

3,571,391.94
237,907,354.87
18,552,984.84

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

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

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

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

Total.

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| notes in acceptof
tural
or less 16 to 90
(includ- days, in- paper, United connec- ances, b a n k e r s '
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.

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

cent.
14
4
4
14

T o t a l sale.

T o t a l allotm e n t , second
district.

Third.".
Third.
Third"..
Third.
Fourth
Fourth
Fourth
Fourth
Fourth"
Fourth
Fourth
Fifth."!
Fifth..

1 T a x certificates.

.....

2 S u b s c r i p t i o n of ,$230,017,000.

SCHEDULE 9.—Liberty loan
THIRD

*h

44
14
U

*k

i 4
i 4

4-i
4i
H•H
14
4*
4-1
U
*4£
4|

41

$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

Third.,
Third.

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.

$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*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

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

$50..
$100
$150 t o $450
$500
$550 t o $950

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.

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

Class of b a n k .

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.
Richmond 1 .
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

118,629,200

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.

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

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

$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 loss.

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

N e t gain.

$138,489,925.08
333,717,816.75

$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.
1917 Navy.
Nov. 21,

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.
B a n k e r s * acceptances.
January
February
March
April...
May
June...
July
August
September
October
November
JXecember
T o t a l , 1918
T o t a l , 1917

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,
244
322
413
385
725
1,090
1,637
2,190
1,148
1,096
1,356
10,861

Total

248
217
290
354
324
609
946
1,487
1,992
891
903
1,156
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.
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

1918

1,274,824,039
1,174,144,540

20,991,812,280
18,371,877,749

+H

Philadelphia.

Januarv
February
Mav
July

November
T o t a l , 1918
T o t a l , 1917

- 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
35
27

11
14

$100,000
to
$500,000.

2

455
629

to

2
2
2
2

Total.
1918

1
1

79
78
63
39
55
33
29
32
32
19
26
23

2
2

1917

512

2

1
2
1
3
9
2

classified

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..

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

Total

'

$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 .

Coke
eastbound.

Miscellaneous
eastbound.

Junction,

Miscellaneous
westbound.

Total,

1918
January
March
May
June
July
August
September
October

Total

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—
1918

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

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

Allentown, P a
Atlantic City, N . J

$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
of short
 maturities.


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
 raw materials and the inadequate supply of competent labor.
kinds of


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.
Business
 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 high-class goods
being greater than ever before. Wholesale dry-goods houses reported
the receipt of large orders, but in some instances, actual sales ran
behind those of last year owing to the physical impossibility of getting
out orders, due to the deficiency in the supply of labor. The raw
cotton market was unsettled by the price-fixing plans. Textile mills
continued very busy. Money was still quoted at 6 per cent. Banks
sought little or no paper from brokers and loans were scrutinized
closely.
October.—Efforts to increase the output of iron and steel plants and
other industries which had large Government contracts caused
improvement in both the number of hands employed and in the quantity of production. Retail trade showed a large increase during the
month up to the beginning of the influenza epidemic. Since that
time the
 number of customers visiting the stores decreased about


424

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

one-third and the volume of sales from 30 to 50 per cent, and working
forces of all business concerns were affected very much; at times as
many as one-third of the employees were unfit for duty. The
epidemic also greatly affected the coal output, causing a decline in
the production of anthracite of from 250,000 to 300,000 tons per
week, some of the collieries being compelled to close. The scarcity of
pig iron became more acute, there not being enough of any grade to
take care of the demand. Results of the efforts to speed up pig iron
production are reflected in the figures for September, which show a
daily average of 113,942 tons, the highest in the history of the
industry. Financial transactions were overshadowed by the Liberty
loan campaign. The minimum rate for paper remained at 6 per cent.
During the month Bradstreet's report showed only 19 failures in the
district, the lowest for a long time.
November.—A more normal business situation resulted from the
waning of the influenza epidemic. Retail trade improved wonderfully and merchants expressed the belief t h a t the buying during the
balance of the year would more than make up the loss caused by the
epidemic. While there was a strongly defined tendency to mark
time, with a view to determining the probable extent of readjustment after the war, the consensus of opinion was t h a t the period of
readjustment would be relatively short, to be followed by an era of
industrial activity. Overtime and Sunday work were abolished in
war and shipbuilding industries. The situation with regard to
supplies of fuel reflected considerable improvement, despite the loss
in output occasioned by the influenza epidemic. There was a downward tendency in cotton yarn prices while the Government was
adjusting contracts. Some wool was released by the Government for civilian use. Sentiment among builders was particularly
optimistic, as they looked for a pronounced increase in activity with
the removal of Government restrictions and the probable increased
supply of labor that was expected to follow a curtailment of Government construction. The prevailing rate for paper was 6 per cent,
with banks buying very little.
December.—The readjustment to peace conditions proceeded very
rapidly and with much less disturbance to business than was generally
expected, especially in industrial lines, where the principal effect of
the ending of the war appeared to be reflected in the elimination of
overtime work. Retail trade was exceptionally good, retailers of
men's wearing apparel reporting business 25 per cent ahead of
December, 1917. With the war over, the public believed there was
no further need for stringent economy and felt free to purchase
liberally all kinds of goods. Thousands of wage earners were released




425

DISTRICT NO. 3 — P H I L A D E L P H I A .

which had been pushed to the utmost for the past few years
on war work, experienced a let-up in the strain with the cancellation
of war orders, the amount of accumulated civilian orders not being
large. The outlook, however, was considered bright. Dealers in
automobile pleasure cars were very optimistic regarding the future.
The money market in Philadelphia remained firm at 6 per cent.
Public participation in the speculative markets was at a low ebb,
owing to money restrictions and uncertainty regarding the readjustment period and the future of the railroads.
E X H I B I T A.—Movement of principal earning assets of the Federal Reserve Bant
Philadelphia during the calendar year 1918.
[ I n t h o u s a n d s of dollars; i. e., 000 o m i t t e d . ]
Discounted
paper
secured
Other
b y U n i t e d discounted]
States
paper,
w a r obligations.

(1+2)

Bills
bought
in open
market.

Total
bills discounted Per cent.
(1-T-o)
and
bought.
5

Jan.4
Jun.ll
Jan.18
Jan.25
Feb. 1
Feb.8
F e b . 15
F e b . 21
Mar. 1
Mar. 8
M a r . 15
Mar. 22
Mar. 28
Apr. 5 . . .
A p r . 12
A p r . 19
A p r . 26
May 3
M a y 10
M a y 17
* M a y 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
fiopt.13
Kept. 20
Sopt.27
Oct. 4
O c t . 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
D e c . 13
D e c . 20
Dec-27

..




19 971
18, 410
18, 015
18 797
17, 640
14, 234
15, 345
16. 249
14, 733
16, 002
15, 232
19, 957
21, 828
18, 617
19, 671
22 057
27, 806
28, 798
29, 251
26, 185
29! 541
3F 517
36, 006
37, 762
40' 530
43; 933
47'. 755
41, 423
42, 867
50, 589
53 961
64 321
65; 021
59; 304
65, 357
70, 185
70, 650
80, 609
86, 718
88, 904
90, 362
91, 648
78, 354
98, 049
123, 571
147, 006
146, 472
165, 505
164, 232
163 285
153', 085
161 417

12,992
10,746
13,148
15,013
15,989
10,919
10,881
8,600
7,516
9,050
9,058
9,308
9,591
8,380
7,254
4,555
7,545
10,510
9,178
10,091
11,149
11,323
13,593
12,534
14,485
16,284
23,491
25, 761
29,042
30,802
29,020
28,025
28,964
25,879
25,913
29,508
26,678
21,030
21,112
19,718
18,477
14,739
12,992
17,958
15,239
10,992
15,890
16,486
18,334
18,584
14,557
19,247

32,963
29,156
31,163
33,810
33,629
25,153
26,226
24,849
22,249
25,052
24,290
29,265
31,419
26,997
26,925
26,612
35,351
39,308
38,429
36,276
40,690
42,840
49,599
50,296
55,015
60,217
71,246
67,184
71,909
81,391
82,981
92,346
93,985
85,183
91,270
99,693
97,328
101,639
107,830
108,622
108,839
106,387
91,346
116,007
138,810
157,998
162,362
181,991
1*82,566
181,869
167,642
180,664

18,364
17,045
14,269
14,179
13,860
13,260
17, 738
18,264
17,475
18,901
19,172
18,172
22,440
21,898
21,290
27,440
26,303
23,933
25,727
26,956
23,438
20,968
23,114
21,281
19,944
18,104
16,756
16,033
12,157
13,430
14,026
11,684
11,326
11,035
9,762
8,856
9,693
9,044
7,976
21,754
24,883
26,082
30,915
36,613
42,343
33,262
20,586
15,875
6,042
5,694
5,833
3,248

51,327
46,201
45,432
47,989
47,489
38,413
43,964
43,113
39,724
43,953
43,462
47,437
53,859
48,895
48,215
54,052
61,654
63,241
64,156
63,232
64,128
63,808
72,713
71,577
74,959
78,321
88,002
83,217
84,066
94,821
97,007
104,030
105,311
96,218
101,032
108,549
107,021
110, 683
115,806
130,376
133,722
132,469
122,261
152,620
181,153
191,260
182,948
197,866
188,608
187,563
173,475
183,912

6
38.9
39.8
39.7
39.2
37.1
37.1
34.9
37.7
37.1
36.4
35.0
42.1
40.5
38.1
40.8
40.8
45.1
45.5
45.6
41.4
46.1
49.4
49.5
52.8
54.1
56.1
54.3
49.8
51.0
53.4
55.6
61.8
61.7
61.6
64. 7
64.7 1
66.0 j
72.8
74.9
68.2
67.6
69.2
64.1 !
64.2
68.2 |
76.9
80.1
83.6
87.1
87.1
8K.2

87.8 1

of

426

A T S J ^ U A L REPORT OF T H E FEDERAL RESERVE BOARD,

FEPERAL RESERVE BANK OFPHllAPELPtilAs
MOVEMENT OF EARNING ASSETS
DURING THE CALENDARJEAR1318
.^
Curvet: Jf&r/oanJ&Ker.
(hrivZ.Jo6al$ilh®is&an6c&l
&rrc3.-joais discounted unci bought. _
Oxrye4:JotalSxrnin^j{ssetsJ zkcl. US. (^yernMcn^Secdnties)
toJbtaLJBiUs Siscou^ttedandJSoagfU;,

wo\

\240\ 30 \

\220

220\

ha?
\200\

WO

ISO

6s\
160

\M

\/20

\KX)

-3s\
-30\

60

40

20

4 !t $Z£I $152f IS t5ZZSSJZ8aS3QI?&3t?HZ3!Sft 8X231623306333274 f! #251* IS2£&6^
JAN. \FEB. IMCH. I APR. I MAY \JUNB\ JULY \ AUG. \S£PT.\ OCT. \ NOK \ DEC.




DISTEICT NO. 3

427

PHILADELPHIA.

EXHIBIT B.—Movement of cash reserves, net deposits, Federal Reserve note liabilities,
and the reserve percentage of the Federal Reserve Bank of Philadelphia during the
calendar year 1918.
[ I n t h o u s a n d s of d o l l a r s ; i. e., 000 o m i t t e d . ]

Total
cash
reserve.

Jan. 4...
Jan. 11..
J a n . 18..
Jan. 25..
Feb.l..
Feb.8..
Feb.15.
Feb. 21.
Mar. 1 . .
Mar. 8 . .
M a r . 15.
Mar. 2 2 .
Mar. 28..
Apr. 5 . .
A p r . 12.
A p r . 19.
Apr. 26.
May 3 . .
May 10.,
May 17..
May 21.
May 31..
June 7..
J u n e 14.
June 21.
J u n e 28.
July 5 . .
July 12..
July 10.,
July 26.
Aug. 2..
Aug. 9...
A u g . 16.
Aug. 23..
Aug. 30..
Sept. 6...
S e p t . 13..
S e p t . 20..
S e p t . 27.
Oct.4...
Oct.10..
Oct.18..
Oct. 2 5 . .
Nov.l...
Nov. 8...
N o v . 15..
N o v . 22..
N o v . 29..
Dec.6...
Dec. 1 3 . .
Dec. 2 0 . .
Dec. 2 7 . .




118,722
126,288
123,748
128,320
125,780
146,161
129,839
133,148
138,889
143,622
142,095
144,934
147,522
151,129
151,488
151,709
142,947
152,660
158,236
152,714
141,331
155, 205
159,644
154,463
140,084
115,287
147,889
158,810
157,676
155, 222
153,997
155,525
167,165
168,678
171,685
177, 666
179,090
187,183
174,828
182,089
178,634
187,206
173,443
161,412
131,274
135,592
120,988
126,920
134,187
128,147
132,306
143,556

Net
deposits.

79,587
81,057
79,002
87,223
83,467
91,434
76,153
78,292
80,108
87,014
83,080
90,456
93,592
89,706
89,263
87,938
83,164
90,540
94,044
86,072
73,864
82,012
93,796
83,068
73,924
72,492
78,905
82,823
80,550
83,361
79,542
80,162
90,539
79,887
82,499
90,586
87,187
97,274
87,065
103,282
97,006
98, 792
93, 622
93,469
87,951
97,675
82,847
98,871
95,852
84,557
76,920
88,174

Federal
Reserve
notes
i n actual
circulation.!

93
93
91
91
94,
97,
100'.
102!
103'
104
107
108
114
116
118
119
121
124
125
126
128
133
13o
139:
141;
147.
153
155
15'
162
167;
174;
177,
ISO!
185!
19a
195
196
199;
205i
211
216
214
217!
222
225!
222
223;
223!
226!
232!
233!

•

(2+3)

172,816
171,275
170,825
178,653
177,681
188,633
176,766
180,468
184,091
191,810
190,674
199,371
207,854
206,584
207,442
207,119
204,240
214,624
219,285
212,762
202,278
215,771
228,800
222,384
215,569
219,922
232,265
238,1? 0
237,890
246,279
246,748
254,876
267,771
260,313
267,742
281,038
282,296
293,302
286,837
308,473
308,240
314,866
308,415
311,393
310,794
322,697
305,753
320,601
319,833
311,015
309,147
321,655

R a t i o of
cash reserves
to net
deposit a n d
Federal Reserve note
liabilities
combined.

68.7
72.5
72.4
71.8
70.8
77.5
73.5
73.8
75.4
74.9
71.5
72.7
71.0
73.1
73.0
73.2
70.0
71.1
72.2
71.8
69.9
71.9
69.8
69.5
65.0
66.1
63.7
66.7
66.3
63. 0
62.4
61.0
62.4
64. S
64.1
63.2
63.4
63.8
61.0
59.0
58.0
59.5
56.2
51.8
42.2
42.0
39. 6
39.6
42.0
41.2
42.8
44.6

428

A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD.

FEDERAL RESERVE BANK OFPHILADELPHIA.
^DEPOSIT AND NOTE LIABILITIES,!
ALSO CASH RESERVES,
[DURING THE CALENDAR YEAR 1918.
\ Curve/: ^et deposits.
CurreZ.Jobal Cash Reserves. \
Curve J.- Aggregate Jfet ®efwsi£ and &•%. MteJGtixhilities.
Curve4: Static of Cash, Reserves to jfggregate
JVettDepasCt and, 3TSI. JToCe HabUMes.

\60A

eo\
\30dc75\

\?S\

\/v\

70
\270\

\6o]i

Z4Ck60\

\ss\

5S\
210

\so\

-so\
130

\4S\

•4o\
/SO
35" \

3S\
IEO\

lilMiiiiiw

eo\

\60

60\

\30

\30\

4tl'JtSt4£&'I<f&&J8Sa/9&3J0l7M3t?KaatS-ZBXZS
JAN. 1 FEB. \ MCH. I APR. MAT\JUN£\JULY




J6aJ06O20Z>4i//9&/*JSZZ296S&g>\
\ AUO.\SEFT.\ OCT. \ NOV. \ PEG-

429

DISTRICT N O . 3 — P H I L A D E L P H I A .
SCHEDULE

1.—Comparative statement

of condition
Philadelphia.

of the Federal

Reserve

Bank

of

Dec. 31, 1918.

Dee. 31, 1917.

$135,032,810.41
43, 787,151.29
3,011,280.08
11,417,900.00

$4, OOS, 400.00
31,903,836.94
18,390,067. 91
9,649,950. 00
10.000.00

$900,000.00
663,076. 79
13,656,430.08
2,825,000.00
465,112.22

193,249,141.78
Earning assets
Interest accrued on United States bonds and notes
43,309.74
Cost of unissued Federal Reserve notes
Expenses paid in advance
Transit department expenses
Furniture and equipment—transit department
Bank premises
500,000.00
Due from Federal Reserve Banks—net
'.
Due from banks and bankers
Exchanges for clearing house, cash items, etc
33,558,293.29
Uncollected items—Federal Reserve Banks
41,527,684. 40
Uncollected items—banks, member and nonmember
12,029, 710.01
Member banks—overdrafts
59,024.31
Difference account
,
1,527. 68
11, 739, 400.00
Federal Reserve notes on hand
Federal Reserve bank notes on hand
332,037.00
Due from Treasury—5 per cent fund Federal Reserve
bank notes
475.000.00
Notes of national and other Federal Reserve Banks
3,737,000.00
Mutilated currency forwarded for redemption
1,019,340.00
Mutilated Federal Reserve notes
Nickels and cents
,
271.16
Liberty loan bonds sold on instalment plan
11,371.00
Miscellaneous assets
85,5S3,245.00
G old with Federal Reserve agent
7,900,000.00
Gold redemption fund 1
Gold settlement fund
, 37, 412, 400.54
1, 459,351.21
G old coin and certificates
Bank of England sterling gold account
Other lawful money
1,667, 646. .00

63,962,254. 85
58,906.44
511.99
2,055.51
25,580.56

18,509,619.09
17,057.93
27,708.01
2,445.83
1,367.18
15,409.87

12,370,908.10
1,517,804.61
7,378,564.69

5,382,501.30
609,389.97
3,864,733.22

Collateral notes—members
Bills discounted—members
Bills bought in open market
United States bonds and notes.
Municipal warrants

Dec. 30, 1916.

12,804.81

1,353,500.00
56,027.50
209.09

463,476.00
132,500.00
121.89

110,032.85
63,945,755.00
1.500,000.00
32,101,000.00
19,064,667. 50
3,675,000. 00
1,189, 996.10

100,000.00
8,042,000.00
16,988,892.50

25, 597,046.80

433,069,038. 29 212,674,169.60

Total resources.

171,140.00

134,022,648. 75 121, 476, 418. 60

Reserve

'4,"348,590."66'

54, 794,517.09

6,142,150.00
220, 238. 27
160,902. 51

5, 228,100.00
89,966.68

*5"387"488'53

"3," 145," 549." 05

103,000,930.13
435,026.66
97,325, 755.00

44,965,072.26
26,015. 72

1,678. 50

254.05

466,154.30

LIABILITIES.

Capital,
Profit and loss
Surplus
Unearned discount and interest
Reserve for franchise tax
Reserve for depreciation United States securities..
Government deposits
Due to other Federal Reserve Banks
Uncollected items—Federal Reserve Banks
Uncollected items—member banks
Due to member banks
.•
Cashier's checks
Federal Reserve notes outstanding
Federal Reserve bank notes outstanding
Miscellaneous liabilities
Total liabili