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SIXTH ANNUAL REPORT OF THE FEDERAL RESERVE BOARD COVERING OPERATIONS FOR THE YEAR 1919 WASHINGTON GOVERNMENT PRINTING OFFICE 1920 TABLE OF CONTENTS. Page. PART I.—Report of the Federal Reserve Board, with exhibits 1-296 PART II.—Report of Federal Reserve Agents to the Federal Reserve Board. 297-508 PART III.—Recommendations of the Federal Advisory Council to the Federal Reserve Board for year 1919 511-532 PART I. Text of report: Introductory review Interbank purchases of acceptances and rediscount operations Discount rates approved by the Board Movement of principal assets and liabilities of all Federal Reserve Banks during the year 1919 Condition during 1919 of member banks in principal cities Acceptances Imports and exports Fiscal agency operations Membership of State bankB and trust companies Rates of earnings of Federal Reserve Banks, by classes of assets Distribution of earning assets at the opening and close of the year Earnings and expenses of the Federal Reserve Banks Permanent buildings for Federal Reserve Banks Branches of Federal Reserve Banks and their operations Federal Reserve clearing and collecting system Gold settlement fund Federal Reserve bank notes Regulation and control of foreign exchange Exports of coin, bullion, and currency Foreign branches of American banks Meetings of the Federal Advisory Council Law division Amendments to the Federal Reserve Act Fiduciary powers granted to national banks Board's organization, staff, and expenditures Permanent quarters for Board and its staff Recommended amendment to act, permitting national banks to establish branches Federal Reserve notes and credit expansion Discount policy and credit control 1 5 8 12 17 21 23 25 28 31 32 34 37 38 40 44 46 47 50 53 56 56 58 62 62 63 64 65 67 EXHIBITS. Exhibit A—Discount rates Exhibit B—Federal Reserve notes Exhibit C—Statement of condition of Federal Reserve Banks Exhibit D—Investment operations of Federal Reserve Banks Exhibit E—Gold settlement fund Exhibit F—Operations of the Federal Reserve clearing system 76 80 112 157 212 222 in IV Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit CONTENTS. G—Earnings and expenses of the Federal Reserve Banks H—Receipts and disbursements of the Federal Reserve Board I—State banks and trust companies admitted to membership J—Foreign branches authorized K—Fiduciary powers granted to national banks L—Banks granted authority to accept up to 100 per cent of capital and surplus M—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 N—Directory of the Federal Reserve Board and Federal Reserve Banks O—Federal Advisory Council P—Amendments to the Federal Reserve Act Page. 229 236 239 260 260 269 274 277 279 282 288 289 CHARTS. Movement of earning assets of all Federal Reserve Banks during calendar year 1919 Net deposit liabilities, Federal Reserve note circulation, cash reserves, and reserve ratio of all Federal Reserve Banks during calendar year 1919 Required and excess reserves: (1) Gold reserves required against Federal Reserve notes in circulation... (2) Cash reserves required against Federal Reserve note and net deposit liabilities combined (3) Total cash reserves held by Federal Reserve Banks Average daily holdings of each class of earning assets by Federal Reserve Banks : During calendar year 1918 During calendar year 1919 Operations through gold settlement fund, by weeks, during calendar year 1919.. Operations of the New York Federal Reserve Bank through gold settlement fund, by weeks, during calendar year 1919 Number of banks on par list, also average daily number and amount of items handled by Federal Reserve Banks, 1917-1919 120 124 125 125 125 134 135 216 217 226 PART II. Reports of Federal Reserve Agents to the Federal Reserve Board District No. 1—Boston District No. 2—New York District No. 3—Philadelphia District No. 4—Cleveland District No. 5—Richmond District No. 6—Atlanta District No. 7—Chicago District No. 8—St. Louis District No. 9—Minneapolis District No. 10—Kansas City District No. 11—Dallas District No. 12—San Francisco 297-508 299 317 333 351 367 383 403 423 439 457 473 491 PART III. Recommendations of the Federal Advisory Council, 1919 Description of Federal Reserve districts 511 533 PART I. REPORT OF THE FEDERAL RESERVE BOARD, WITH EXHIBITS. THE FEDERAL RESERVE BOARD. 1919. CARTER GLASS, ex officio. i Secretary of the Treasury, Chairman. | JOHN SKELTON WILLIAMS, ex officio, Comptroller of the Currency. ! VI W. P. G. HARDING, Governor. ALBERT STRAUSS, Vice Governor. A. C. MILLER. CHARLES S. HAMLIN. HENRY A. MOEHLENPAH. ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BOARD, Washington, February 2, 1920. SIR: The Sixth Annual Report of the Federal Reserve Board covering operations for the calendar year ended December 31, 1919, is submitted herewith. INTRODUCTORY REVIEW. The past year has witnessed the return and demobilization of troops, the readjustment of commercial and industrial activities to a peace basis, and the removal of most of the war-time restrictions. It has, moreover, been a year marked by industrial unrest, by economic confusion, by reduced production, increased domestic consumption, high prices, and unprecedented extravagance. In the exercise of its functions, the Federal Reserve Board has been confronted with problems of peculiar difficulty, not admitting of treatment either by methods necessary or permissible in time of war, nor by recourse to means which would naturally suggest themselves under normal economic conditions. A consideration of these problems makes necessary a brief review of the financial exigencies of the war and of the manner in which they were met. It must be remembered at the outset that war financing necessarily involves credit expansion unless private consumption is curtailed at a rate commensurate with the increase of Government requirements. Such curtailment is at best a gradual process; with us it had been brought under a gratifying degree of control when the armistice was signed. The War Industries Board through priority orders and price fixing, and the Food and Fuel Administrations by rationing, voluntary cooperation, and price fixing had limited consumption, and as a consequence expenditure; and these limitations, had the war continued, wrould have shown striking results in our ability to place further Liberty bond issues with investors. To the extent, however, that what was accomplished in saving fell short of actual requirements, there was a margin of bonds that could not be paid for immediately out of savings and which it became necessary for the banks to carry, either directly or indirectly through loans to purchasers. This expansion of bank loans must be kept in mind in order to understand the situation. Failure to understand it leads to the impression held by many that Liberty bonds could all have been sold to investors had they borne a higher interest rate. No rate within reason could have accomplished this end, as the invest l 2 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. ment funds to absorb these enormous issues in their entirety simply did not exist and their growth could not have been induced to an adequate degree by higher rates. In order that the member banks might carry the burden of undigested Government securities they were obliged to rediscount with Federal Reserve Banks, and in order that such rediscounting should not involve them in heavy loss it was essential that as long as the banks were lending to bond subscribers at coupon rates the rediscount rate should be related to the bond rate. The rediscount rates of Federal Reserve Banks, therefore, instead of being higher than the market rates, as in theory and in normal practice they should have been, were made lower than the market rates. This circumstance is enough to prevent a normal functioning of a Federal Reserve Bank, whose rates should be so fixed that resort thereto is unprofitable to the borrowing institution and thus has a tendency to check expansion. The remedy for this condition is the absorption by investors of the undigested securities. This process could not be accelerated, as in normal times, by sharp declines in value, as the large volume to be digested precluded that possibility. Absorption can be brought about only by time and saving; and it often happens that a rising price causes better absorption than a falling quotation. A consideration of these facts makes it clear that abnormalities were imposed on the banking system by the war and that a restoration of normal conditions must be brought about through the gradual elimination of wTar paper from the banks. It was necessary to cooperate with the Treasury in every way to facilitate first .the sale of Government securities and then their absorption by investors. For the full understanding of the Treasury's position as the most important factor in the money market, it is necessary to touch briefly on its issues of certificates of indebtedness. The principal issues of such certificates were loan issues and tax issues. On May 5, 1919, there were outstanding $6,467,525,000 of certificates, which was the maximum at any time outstanding. On December 31, 1919, there were outstanding $3,262,184,500; at the date of this report there were outstanding but $3,124,757,500, whereof about $550,000,000 mature March 15 and will be paid off out of tax receipts due that day. It will be seen that there has thus been a very substantial reduction of the floating debt represented by the certificates of indebtedness. Certificates now outstanding mature on March 15, June 15, September 15, and December 15, 1920, these being the dates on which taxes become payable and they will then be paid off out of tax receipts. It is estimated that receipts from income and excess profits taxes payable during the calendar year 1920 will be more than ample to redeem all tax certificates outstanding at present, and that portion of these taxes will be available to cover current Digitized foraFRASER ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 6 expenditures. The amount by which other current receipts fall short of meeting current expenditures may then be covered by further issues of tax certificates maturing on tax dates in 1921. Such issues will, it is estimated, be for amounts appreciably smaller than the issues now outstanding. The volume of certificates being steadily reduced, the new issues of certificates should be readily absorbed. It is estimated that over 60 per cent of present tax issues are held by taxpayers and investors and only 40 per cent by the banks. Distribution of the certificates has been effected through the Federal Reserve Banks, with the cooperation of the member banks—a vast organization which can not be duplicated—the member banks buying the certificates in the first instance and then gradually selling them to their costumers. This could not have been accomplished if member banks had not had the assurance that their investments in certificates pending distribution could, if necessary, be carried in Federal Reserve Banks without loss. In making rates for rediscounting loans on Government securities the policy was to avoid loss to the banks, which were necessarily the distributing media. As Treasury operations became gradually a less determining factor in the money market, the situation as to commodity prices became more important. The purchasing power of the public growing out of high wrages and large profits is greater than it has ever been before; and this purchasing power, competing with export demands arising out of the necessities of Europe, has raised prices to a point that takes no account of prudence. Every element of increased cost is added to price, and there is, therefore, no incentive to manufacturers to produce cheaply or to hold back because of any element of cost, whether of credit, labor, or material, as they can always sell their output at a profit. There is practically unlimited demand for credit not only for the manufacture and distribution of goods, but also for speculation in commodities and in the securities representing ownership of the industries producing those commodities and which profit by their production and sale. From the facts set forth above, it is evident that an advance in discount rates while the Government had an unwieldy floating debt and Liberty bonds were still largely unabsorbed would have added to the difficulties of Government financing. While regulation and control of credit have been as desirable since the war restrictions were removed as before, the Board was convinced that to attempt this control through premature adjustments of rates would be so detrimental to the Treasury's position as to offset, if not prevent entirely, the results sought. Early in December, howTever, after the program of the Treasury for the adjustment of the floating debt had advanced to a stage where it could no longer be seriously affected by the adoption of a 4 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. more normal banking policy, the Board notified the Federal Reserve Banks that it was ready to consider their suggestions for rate changes, and that it would approve an advance in the rates for paper secured by Government obligations other than Treasury certificates of indebtedness. As the highest rate borne at that time by the certificates was 4J per cent and as they were held largely by banks, the Board felt that in view of all the circumstances the existing rate on notes secured by Treasury certificates as collateral should be maintained for a limited time. The Treasury, however, on December 29, announced that it would offer on January 2, 1920, certificates bearing interest at the rate of 4f per cent payable on December 15, 1920, and the Board thereupon took steps to advance the rate on notes secured by Treasury certificates to 4f per cent. At the close of the year, at a majority of the Federal Reserve Banks, rates on paper secured by Government obligations of every kind had been advanced to the same level as the rates then ruling for commercial paper, while the other Federal Reserve Banks announced their readiness to comply with the Board's wishes as soon as meetings of their directors could be held. No advance in the discount rate on commercial paper had been made up to December 31, chiefly because it was deemed desirable to ascertain to what extent the seasonal licjuidation, beginning usually in January, would proceed without the added stimulus of higher rates and partly, too, because at some of the most important financial centers rates of interest on bank balances were based on the 90-day discount rate of the Federal Reserve Bank, and were subject to an automatic increase should that rate be advanced. Such increase might easily lead to a disturbing scramble for deposits. While there is no obligation on the part of either the Board or the Federal Reserve Banks to consider interest rates allowed by commercial banks on deposits in establishing discount rates, it was the Board's view that this fact should be understood by the banking community, and that the banks in the centers affected should be given an opportunity in anticipation of future rate changes to modify their rules. Accordingly, on December 29, the Board invited clearing-house associations to send representatives to a conference to be held in Washington on January 6, 1920, for a discussion of the matter. It was the Board's conviction, however, at the close of the year, that a substantial advance in all discount rates was necessary and that it should not be long delayed. The act of September 7, 1916, amended section 13 of the Federal Reserve Act by providing that "any Federal reserve bank may make advances to its member banks on their promissory notes for a period not exceeding 15 days at rates to be established by such Federal Reserve Bank, subject to the review and determination of Federal Reserve Board, provided such promissory notes are Digitized forthe FRASER ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 5 secured by such notes, drafts, bills of exchange, or bankers' acceptances as are eligible for rediscount, or for purchase by Federal reserve banks under the provisions of this act, or by the deposit or pledge of bonds or notes of the United States." Until recently it has been the policy of the Federal Keserve Banks to establish, and of the Federal Reserve Board to approve, preferential rates for paper, including member banks' collateral notes, maturing within 15 days, and a very large proportion of the invested assets of the Federal Reserve Banks have been represented bj r paper of this class. This amendment was suggested by the Board at a time wrhen borrowings by member banks were very small, and when much of the limited demand wras for a short period only. Banks having occasion to use funds for a few days found frequently that eligible paper in their portfolios had a longer time to run than the period covering their requirements, and the result was either that no offering was made or that the loans were taken up before maturity with request for rebates. During the period when the success of offerings of Government bonds and of Treasury certificates depended so largely upon the cooperation of the banks the ability of member banks to discount at preferential rates at Federal Reserve Banks their short-time notes secured by Government obligations proved of great value, but now that Treasury financing is no longer the paramount factor in the money market it is the view of the Board that there should be no preferential rates given to member banks' collateral notes. INTERBANK PURCHASES OF ACCEPTANCES AND REDISCOUNT TIONS. OPERA- The rediscoxmting between Federal Reserve Banks of bills purchased and of discounted paper has been continuous throughout the year, due both to the movement of funds in connection with fiscal operations of the Treasury and also to seasonal requirements for the movement of crops and the purchase of raw materials by industries. The Board has carried out its policy of equalizing as far as practicable the reserve position of the several Federal Reserve Banks. All rediscount transactions and sales between Federal Reserve Banks have been arranged by the Board under authority of section 11 of the Federal Reserve Act, which provides that a Federal Reserve Bank may be permitted or, upon the affirmative vote of at least five members of the Federal Reserve Board, required to rediscount the discounted paper of another Federal Reserve Bank at rates of interest fixed by the Federal Reserve Board. There has, however, been such a spontaneous spirit of cooperation between the Federal Reserve Banks that all transactions suggested by the Federal Reserve Board have been made voluntarily, and in no case has the 6 AXNTJAL BEPORT OF THE FEDERAL RESERVE BOARD. Board found it necessary to exercise its statutory power to require such operations. By means of the Federal Reserve leased-wire system rediscount transactions have been consummated almost instantaneously. All payments have been made on the day the transactions were completed by direct transfers through the gold settlement fund, through book entries at the banks and at the office of the Board, without involving any physical transfer of gold. There has been during the year a continuous increase in the amount of open-market purchases of acceptances made chiefly h}r the Federal Reserve Banks located in New York and Boston, which cities are the principal acceptance markets. The Federal Reserve Banks of Cleveland, Chicago, Minneapolis, Kansas City, and San Francisco have participated daily in the open-market purchases of the Federal Reserve Bank of New York under an agreement approved by the Federal Reserve Board. Other Federal Reserve Banks have undertaken to care for acceptances originating in their own districts which have been sold in the New York market. The total purchases of acceptances by the Federal Reserve Bank of New York amounted to $1,950,898,000, of which $739,499,000 were immediately allotted in the amounts indicated to the Federal Reserve Banks in the cities named below: Cleveland Chicago St. Louis Minneapolis Kansas City San Francisco $179, 592, 000 160,173, 000 500, 000 88, 696, 000 22, 461, 000 288, 077, 000 .• The growth of the acceptance business and the great increase in the volume of acceptances purchased by Federal Reserve Banks are indicated in the following table. Acceptances bought by Federal Reserve Banks. [In thousands of dollars.] Bought from other Federal Reserve Banks. Bought in open market. Federal Reserve Bank. 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 86,481 445,307 70,710 51,007 54,759 25,388 61,142 22,788 16,397 17,561 9,743 48,018 194,158 360,784 945,498 1,211,399 77, 686 14,049 122,800 261,750 70,766 52,977 45,477 51,661 122,787 292,012 26,096 87,503 13,903 108,714 14,691 26,086 25,024 12,415 150,653 345,827 5,047 19, 659 15,204 40,102 3,367 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 55,300 5,080 5,065 95,477 40,320 19,282 45,099 10,077 133,050 64,845 386,095 909,301 1,809,539 2,825,177 168,411 336,590 424,577 1915 Boston New York Philadelphia Cleveland . Richmond Atlanta Chicago St. Louis . Minneapolis Kansas Citv Dallas . . . San Francisco Total 14,105 25,834 7,565 2.963 250 72 5,782 1,801 1,455 1,788 1918 1919 1917 1918 1919 15,827 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 7 In order to maintain an open market for bankers' acceptances the Federal Reserve Banks of Boston and New York have been called upon constantly to make very heavy purchases, and it has been necessary for these banks in order to sustain their reserves to make large sales of acceptances. Other Federal Reserve Banks have had, from time to time, surplus funds and with the approval of the Federal Reserve Board have purchased bankers7 acceptances from these eastern banks. In cases where Federal Reserve Banks have of their own initiative purchased bankers' acceptances from other Federal Reserve Banks with the approval of the Board, the indorsement of the selling bank has not been given as a rule, but whenever the Board has requested a Federal Reserve Bank to rediscount bankers' acceptances for another the selling bank has been required to indorse the bills sold. The Federal Reserve Banks of Cleveland, Chicago, St. Louis, Minneapolis, and San Francisco are the only banks which have neither rediscounted nor sold paper during the past }rear. Rediscount operations between Federal Reserve Banks including straight purchases of bankers' acceptances during the }rear have amounted to $2,658,254,000, as compared with $660,638,000 during the year 1918. In addition to these transactions the Federal Reserve Bank of New York has purchased and allotted to other Federal Reserve Banks $730,866,000 of bankers' acceptances, making a total interdistrict movement of bills discounted and acceptances purchased and allotted to other Federal Reserve Banks of $3,389,120,000. The figures in detail appear in the following table: Interdistrict movement of bills discounted or purchased by Federal Reserve Banks during the period from Jan. 1 to Dec. 31, 1919. [In thousands of dollars.] Rediscounts and sales between Federal Reserve Banks. Federal Reserve Banks. Boston New York Philadelphia. Cleveland Richmond Atlanta Chicago.. St. Louis Minneapolis Kansas City Dallas San Francisco Total Acceptances purchased for account of other Federal Reserve Banks. Interdistrict movement of discounted and purchased paper. RedisExcess Excess of Amount Amount Excess Discounted counted or of redis- discounts purchased movepuror sold purchased counts and for acment chased by— and sales. purchases. by— count of— from— by— 131,165 312,740 55,827 8^6,521 284 317 842,946 5,080 82,690 10,065 i 124 1,493,815 180.529 i 78 447,895 56,500 50,099 404,975 67,577 1515 133,050 2,658,254 131,165 256,913 826,521 837,866 72,625 6,401 337,398 2,658,254 2,468,889 739,499 284 317 179,592 1.423,691 '180,529 447 817 160,173 500 88 696 22,461 132,535 288 077 2,468,889 739,499 Excess movement to— 131,165 996,412 826 521 837,866 72 625 337,398 739,499 3,£01,987 463,909 1,583,864 181,029 536,513 16,060 420,612 3,201,987 1 Acceptances purchased in the open market through the Federal Reserve Bank of New York and returned to that bank before maturity. ANNUAL EEPORT OF THE FEDERAL RESERVE BOARD. The reserve position of the 12 Federal Reserve Banks at the close of business on the last Friday of the year, December 26, and the amount of unmatured rediscounts and paper sold to other banks are shown below: Reserve position of the 12 Federal Reserve Banks, also amount of paper rediscounted with or sold to and held by other Federal Reserve Banks as at close oj business, Dec. 26, 1919. [In thousands of dollars.] Ratio of total reserves to combined net deposit and Federal Reserve note liabilities. Bills discounted for or purchased from other Federal R e s e r v e Banks. Bills rediscounted with or sold to other Federal Reserve Banks. Banks. Boston New York Philadelphia Cleveland Richmond \tlanta Chicago St Louis Minneapolis Kansas City Dallas San Francisco Total Actual. Per cent. 69,899 58,201 27,615 After adjustment of reserves by deducting amount of bills rediscounted with or sold to other F e d e r a l Reserve Banks and a d d i n g amount of bills discounted for or purchased from other Federal Reserve Banks. 13,000 9,S05 32,123 15,265 44.0 40.0 40.8 46.3 40.9 52.8 50.6 46.5 39.4 43.1 49.4 54.9 16S,715 168,715 44.8 i2,265 5,080 5,065 j 60,090 29,022 .- Per cent. 24.3 36.2 32.7 49.4 43.5 55.2 58.8 60.5 39.4 41.3 77.0 59.3 44.8 Changes in discount rates approved by the Board for the Federal Reserve Banks were, during the first 11 months of the year, unimportant, but in order to complete the record tables, showing the changes and the dates on which they became effective are subjoined hereto. Changes in discount rates on paper secured by United States Treasury certificates of indebtedness, maturing within 15 days, including member banks'1 collateral notes. Boston 1 4 New York 4 Philadelphia... 4 4 Cleveland •I 1 . .. Richmond 1 4 4 . . . . 1.... Atlanta Chicago 4 St Louis 4 Minneapolis Kansas City 4 Dallas San Francisco cc _ 1 Sept. 1919 Nov. 1919 Nov. 1919 Nov. 1919 Nov. 1919 Nov.l 1919 Nov.l 1919 Dec. 1 1919 Dec. 1 1919 Dec. 1 1919 Dec. 1 1919 Dec. 1 1919 Dec. 1 1919 Dec. 26, 1919. Dec. 3 1919 Jan. 1, 1919. Apr. 2 1919 Apr. 2 1919 Effective— Federal Reserve Bank. oT CD CO cc" CO 0 OJ Ml 141 24* 2 *4i .... 4* 341 :':: 41 1412 4 4 '. .. 4 *4| 4* 41 1 41 2 M§ 41 t I . . . . 1 41 41 41r 141 4+ 4i I 1 8 Rate of 4J per cent on mper secured by 4J per cent Treasury certificates. 8 Applies only to member banks' collateral notes; no rate on customers' paper. Rate of 4J per cent on member banks' collateral notes secured by 4J- per cent Treasury certificates. 'Applies only to member banks7 collateral notes; rate of 4J per cent on customers' paper. ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. Changes in discount rates on paper secured by United States Treasury certificates of indebtedness maturing within 16 to 90 days. EffectiveFederal Reserve Bank. Boston _ New York 1 Philadelphia Cleveland Richmond . Atlanta Chicago St. Louis Minneapolis Kansas City... Dallas SanjFrancisco. j Dec. Dec. Dec. D e c . Dec. Dec. D e c . Jan. Nov. Nov. Nov. Nov. Nov. Nov. 1, 1919. 4, 1919. $ 14J (2) 5, 1919. 1919. 1919. 10, 1919. 15, 13, 1919. 1919. 17, 1919. 14* A 4J 4£ 4i \i i 4* a 26, 30, 1919. 1919. 19, 919. 4* 4i i4i i4i 41 17, 1919. 4J 4J 4£ 16, 1919. 4£ 4J 4* X 4£ X 4£ 4i 4§ 1 Rate of 4i per cent on paper secured by Treasury certificates bearing interest at 4J per cent. 2 Rate discontinued. Changes in discount rates on paper secured by Liberty bonds and Victory notes maturing within 15 days, including member banks' collateral notes. Effective- Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Loin's Minneapolis Kansas City . Dallas San Francisco j ^ Jan. ] 1919. Federal Reserve Bank. 01 ^ ^oJ OS !§ . OS fiOS ftOS 1 ^ " . O S ! .OS ^OS : ^OS .OS .OS 0 ^ j - . OS I .OS ^oJ '"'OS OS 4_L 1-1 OS 34 p 4 4 4 4 1-1 ?;os s 43 7-1 ^ OS ^ p ^ OS ^ ^ p 0 ot ft 4* 4a 4f 41 42 4a 4 4 4 41 4* 4a 41 4 2 4 4 4L 4}- 41 43 4* 43 41 4f 4i 5 41 ! 43 1 Rate of 4 per cent on paper secured by fourth Liberty loan bonds where paper rediscounted had been taken by discounting bank at rate not exceeding coupon rate on bonds. 2 Rate applies to member banks' collateral notes; rate of 4 per cent on customers' paper. Changes in discount rates on paper secured by Liberty bonds and Victory notes maturing within 16 to 90 days. Boston New York Philadelphia . Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. 4i 4i 4i 4i a 4 4i 4i 4* 4* 44 4i 1 1 Dec. 3 1919 Dec. ] 1919 4| i4f 5 5 4| 4} 4| 4f 4i 4£ Dec. ] 1919 1919 4f 4f 4* 4? 41 cT 4i 1 1 U % Dec, ] 1919 if? 4J ........... 4J CO* Dec. Nov. 1919 1919 Nov. 1919 Nov. cT Dec. ] 1919 Nov. 7, 1919. Nov. 6, 1919. Nov. 5, 1919. Nov. 4, 1919. Jan. 1, 1919. EffectiveFederal Reserve Bank. 4| Rate of 5 per cent for maturities 61 to 90 days. NOTE.—Rate of 4 per cent on paper secured by fourth Liberty loan bonds where paper rediscounted was taken at rate not exceeding coupon rate, established during 1918 at the following banks, was discontinued on the dates given: Boston, Feb. 15,1919; Chicago, Apr. 21,1919; Richmond, Apr. 25,1919; St. Louis, 5, 1919; Atlanta, July 17, 1919; Kansas City, June 19, 1919. Digitized forJune FRASER 10 AI\TIsTUAL REPORT OF T H E FEDERAL RESERVE BOARD. Changes in discount rates on commercial paper maturing within 15 days, member .hanks collateral notes secured by such paper. including Effective— Federal Reserve Bank. Boston New York Philadelohia. Cleveland. Richmond Atlanta Chicago.. St Louis Minneapolis Kansas Ci Dallas San Francisco Jan. Apr. Nov. Nov.! Nov. Nov. Nov. Nov. Dec. Dec. ! Dec. D e c . 17, 15, ! 19, 26, 4, i 5, ! 6, /, , 10. 1, 13, 1919. 1919. 1919. 1919.; 1919. j 1919. 1919. 1919. 1919. 1919. 1919. 1919. 4a 4 i ! 4 4 . .. i 4J < 44 • 1 1 4* 4 4 44 ; 44 ! 44 4\ fcy 4J 5 ' 41 ' " ! . 1 ; \ i i i 4 ! 4s 3 4? 4 21 4f ! 4| i . ! vAthin 16 to 90 days. Effective— Nov. 10. Dec. 26, 1919. ' 1919. Jan. 1, 1919. Federal Reserve Bank. Jan. 1, 1919 Chicago . St. Louis i Minneapolis i Kansas Citv Delias San Francisco 4f 42 44 | 4f 4} 1 Nov. 10, 1919. •If 1 Boston New York Philadelphia Cleveland Richmond Atlanta Dec. 26 1919. 1 1 43 1 i 5 41 Rate of 5 per cent for maturities 61 to 90 days. Changes in discount rates on paper secured by War Finance Corporation bonds within 90 dans. Federal Reserve Bank. 4| 44. per cent on member banks' collateral notes. Effective— Boston New Y o r k . . . . Philadelphia Cleveland Richmond Atlanta 4 ! i 44 Changes in discount rates on commercial paper maturing Federal Reserve Bank. 43 5 ! 3 ! maturing Rates on paper secured by War Finance Corporation bonds established on dates given I Federal Reserve Bank. below at 1 per cent in excess of rates on commercial paper of corresponding maturities. Rates on p?«per secured by War Finance Corporation bonds established on dates given below at 1 per cent in excess of rates on commercial paper of corresponding maturities. Apr. 11, 1919. Do. Do. Apr. 4, 1919. Do. Do. Apr. 4, 1919. Do. Do. Do. Do. Apr. 9, 1919. :; Chicago St. Louis ; Minneapolis i Kansas Citv ; Dallas San Francisco Changes in discount rates on agricultural and live-stock paper maturing within 91 to 180 days. EffectiveFederal Reserve Bank. Boston New York.. Philadelphia Cleveland... Richmond.. Atlanta Effective Jan. 1, j Nov. 10, 1919. ; 1919. Federal Reserve Bank. . Chicago.. ! St. Louis. Minneapolis , Kansas City... . . . . | | Dallas 54, 11 San Francisco. Jan. 1, I Nov. 10, 1919. i 1919. 54, ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 11 Changes in discount rates on trade acceptances maturing within 15 days. EffectiveFederal Reserve Bank. Jan. Apr. Nov. Nov. Nov. Nov. Nov. Nov. Dec. ! Dec. Dec. Dec. 26, 21, 4, 7, 10, 17, 12, ; 16, 30, 1, 1919. 1919. 1919. 1919. 1919. 1919. 1919. 1919. 1919. 1 1919. 1919, 1919. 4 4 4 Boston New York 1 Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas . San Francisco 4J 41 4J 4J 14* 4 4-L 4 4 41 4^ 4i 4£ 4i 4i 4J 41 4i 4l 5 5 4f 1 4J 1 Rates apply also to discounted bankers' acceptances. Changes in discount rates on trade acceptances maturing within 16 to 90 days. EffectiveFederal Reserve Bank. Jan. 1, 1919. Boston New York Philadelphia Cleveland Richmond Atlanta Shicago Ct. Louis Minneapolis Kansas City Dallas San Francisco 4* »44 4* 4* N o v . 4, 1919. 2 Nov. 10, 1919. Nov. 17, 1919. Dec. 12, 1919. Dec. 16, 1919. 1919. Dec. 30, 1919. 4! 4i 2 4| 4i Mi . .. .1 44* Dec. 26, - 5 4| 44 5 5 4* 1 Bankers* acceptances discounted, 4£ per cent for maturities 16 to 60 days; 4* per cent for maturities 61 to 90 days. c 2 Rate applies also to bankers' acceptances discounted. Open market rates on bankers' acceptances maturing within three months. Effective Jan. 1, 1919— minimum rate. Federal Reserve Bank. Boston New York Philadelphia. Cleveland Richmond Atlanta . . . 4 4 4 4 4 Federal Reserve Bank. Chicago St Louis Minneapolis. . Kansas City Dallas San Francisco . . . . Effective Jan. 1, 1919— minimum rate. 4 4 4 4 4 4 NOTE.—Whenever application is made by msmber banks for renewal of 15-day paper, the Federal Reserve Banks may charge a rate not excaeding that for 90-day paper of the same class. 178983—20 2 12 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. MOVEMENT OF THE PRINCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS DURING THE YEAR 1919. During the year the activities of the Federal Reserve Banks continued in undiminishing scope and in even greater volume than heretofore. As stated in the opening paragraph of this report, the cessation of actual hostilities did not end the war work of the banks, and participation in the financial operations of the Treasury involving the flotation of the last of the popular war loans and the placing of the several issues of loan and tax certificates, continued to be an important function of the Federal Reserve Banks. The work performed by the Federal Reserve Banks during the year involved the collection, concentration, and disbursement on Government account of $15,669,000,000, of which $4,491,500,000 represents the total of the Victory loan allotted; $6,754,400,000 the combined amounts of eight series of certificates issued during the year in anticipation of the Victory loan, and of four series of the so-called loan certificates; and $4,423,000,000 the total of 11 series of certificates issued in anticipation of income and excess profits taxes due in 1919 and 1920* The reported holdings by Federal Reserve Banks of wTar paper aggregated slightly more than $1,400,000,000 at the close of the year 1918, and reached a maximum of $1,863,500,000 on May 16 1919, about the time of the flotation of the Victor}7 loan, when paper secured by Government obligations constituted 91.4 per cent of the total discounted paper of the Federal Reserve Banks. After this date there was a gradual decline to $1,383,900,000, or 84.1 per cent of their total discounted paper on September 19. Between that date and November 14 the amount of war paper held by the Federal Reserve Banks increased to $1,700,618,000, but since the latter date, as the result of rate revision during the months of November and December, the amount of such paper held by Federal Reserve Banks was reduced to $1,510,400,000, or 68.8 per cent of their total holdings of discounted paper on December 26. Of this amount $732,400,000, or 48.5 per cent were secured by Liberty bonds, $337,700,000, or 22.3 per cent by Victory notes, and $440,300,000, or 29.2 per cent by Treasury certificates. Other discounts, which aggregated $302,500,000 at the close of the year 1918, continued at a comparatively low level during the greater part of the year 1919. It was not until the latter part of September that the discounts of ordinary commercial paper began to show a material increase. On December 26 holdings of such paper amounted to $684,500,000, and constituted 31.2 per cent of the Federal Reserve Banks7 total holdings of discounted bills as against less than 18 per cent a year earlier. Acceptances held, which amounted to $303,700,000 on December 27, 1918, moved within moderate limits during the first half of the calendar year, and not until the end of June was the total amount in excess of ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 13 $300,000,000. During the months of November and December the volume and amount of acceptances held by the Federal Reserve Banks increased very rapidly, and the total held by the banks on the last Friday of the year 1919 ($585,200,000) was over 21 per cent of their total bills held as compared with 15 per cent on the corresponding date of the previous year. During the year ending December 26 the Federal Reserve Banks' holdings of United States bonds decreased from $28,900,000 to $26,800,000, this amount being made up mainly of bonds purchased to secure Federal Reserve bank notes, and of 3 per cent conversion bonds, the amount of Liberty bonds held being comparatively negligible. The increase during the year of $159,194,500 in the holdings of Treasury certificates represents largely the banks7 holdings of one-year 2 per cent certificates to secure Federal Reserve bank note circulation issued to replace silver certificates and silver dollars withdrawn under the operation of the Pittman Act. The total of earning assets increased during the same period from $2,346,200,000 to $3,080,500,000, or nearly 33 per cent. During the first half of the year, while the gold embargo was still in force and also in the period between August and November, the gold reserves of the Federal Reserve Banks were increased by net importations and deposits of gold and by the purchase of German gold from the United States Grain Corporation and its transfer to the Bank of England where it is held as a special deposit available for shipment to this country at any time. These gains were practically offset, however, by gold withdrawn for foreign shipments, principally to Spain, Argentina, and the Far East, the net result being that the gold reserves held by the Federal Reserve Banks on December 26, 1919, amounted to $2,078,400,000, or $11,800,000 less than the amount held on December 27, 1918. The total cash reserves held by the Federal Reserve Banks on December 26 show a corresponding decline from $2,146,200,000 to $2,135,500,000. As compared with the moderate changes in the banks' aggregate reserves, their net deposits, because of additions to membership and in consequence of the general credit expansion, increased during the year from $1,552,900,000 to $1,704,500,000. Federal Reserve notes in circulation on the last Friday in the year 1918 amounted to $2,685,200,000. During the early months of the year 1919 there was a very appreciable contraction of the note circulation, the amount outstanding on January 31 being $2,450,729,000, on August 1 $2,506,820,000, and on September 26 $2,655,354,000. Between that date and December 26 the volume of Federal Reserve notes in circulation increased by over $400,000,000 to $3,057,646,000, the average weekly rate of increase being more than $30,000,000. There has, in addition, been an increase during the year of $143,900,000 14 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. of Federal Reserve bank notes in circulation, all of which, however, have been issued to take the place of silver certificates withdrawn from circulation and of silver dollars broken up and exported under the provisions of the act of April 23, 1918, commonly known as the Pittman Act. The peak in Federal Reserve note circulation during the year 1918 was attained on December 27 and the high point for the year 1919 was reached on December 26. From December 27, 1918, to January 31, 1919, the note issues declined by $234,515,000 and similar reduction may be expected during the opening weeks of the year 1920. The reserve position of the banks until the close of September shows but little change, the ratio of cash reserves to aggregate deposit and note liabilities during the entire period, except on July 11, continuing above 50 per cent. Substantial growth of deposit liabilities during October and November and the large note issues during the last two months, coupled with a simultaneous loss of about 70 millions in reserves, account for the considerable decline in the reserve ratio during the latter part of the year. On the l^ast Friday of 1919 the reserve ratio stood at 44.8 per cent, compared with 50.6 per cent on the corresponding date in 1918. The following table shows in detail the changes in the principal assets and liabilities of the Federal Reserve Banks, week by week, throughout the year. Movement of principal assets and liabilities of all Federal Reserve Banks during the calendar year 1919. [In thousands of dollars.] Resources. Liabilities. 10 Discounted Total paper Other Bills Total bills secured disPer cent Per cent bought discounted discounted by Govern- counted in open (Ito3). (Ito5). paper. and ment war paper. market. bought. obligations. Jan. 3 Jan.10 Jan. 17 Jan. 24 Jan. 31 Feb. 7 Feb. 14 Feb. 20 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar.28 Apr. 4 Apr. 11 Apr. 18 Apr. 25 May 2 May 9 May 16 May 23 May 29 June 6 June 13 June 20 June 27 July 3 1,534,670 1,484,847 1,347,088 1,497,500 1,357,571 1,451,147 1,603,052 1,596,458 1,667,965 1,701,487 1,702,351 1,691,678 1,691,010 1,674,916 1,767,459 1,720,960 1,760,672 1,788,068 1,795,735 1,863,476 1,762,487 1,802,893 1,620,994 1,695,576 1,621,928 1,573,483 1,632,639 295,194 273.229 254,263 264,533 243,557 243,254 233,849 221,996 211,855 186,240 184,012 189,861 195.230 193,066 200,465 201,314 189,740 178,715 172,568, 175,464VI 176,379 186,499 190,130 182,598 215,512 244,557 262,389 1,829,864 1,758,076 1,601,351 1,762,033 1,601,128 1,694,401 1,836,901 1,818,454 1,879,820 1,887,727 1,886,363 1,881,539 1,886,240 1,867,982 1,967,924 1,922,274 1,950,412 1,966,783 1,968,303 2,038,940 1,938,866 1,989,392 1,811,124 1,878,174 1,837,440 1,818,040 1,895,028 290,269 277,896 273,607 284,539 281,293 282,702 275,068 269,920 276,919 273,493 262,139 261,924 248,107 240,790 218,590 196,885 185,822 195,284 182,036 184,717 193,187 183,650 198,307 234,537 274,736 304,558 330,679 2,120,133 2,035,972 1,874,958 2,046,572 1,882,421 1,977,103 2,111,969 2,088,374 2,156,739 2,161,220 2,148,502 2,143,463 2,134,347 2,108,772 2,186,514 2,119,159 2,136,234 2,162,067 2,150,339 2,223,657 2,132,053 2,173,042 2,009,431 2,112,711 2,112,176 2,122,598 2,225,707 83.9 84.5 84.1 85.0 84.8 85.6 87.3 87.8 88.7 90.1 90.2 89.9 89.7 89.7 89.8 89.5 90.3 90.9 91.2 91.4 90.9 90.6 89.5 90.3 88.3 86.6 86.2 72.4 72.9 71.8 73.2 72.1 73.4 75.9 76.4 77.3 78.7 79.2 78.9 79.2 79.4 80.8 81.2 82.4 82.7 83.4 83.8 82.6 82.5 80.7 80.2 76.8 74.4 73.3 Total cash reserves. Ratio of cash Federal reserves Federal Reserve to net Reserve Bank deposit and notes Net notes in Federal circulation, deposits. in Reserve actual net note circulation. liabilities liability. combined. 2,152,154 2,161,898 2,170,163 2,168,387 2,179,646 2,175,614 2,185,318 2,191,532 2,188,723 2,205,462 2,196,737 2,208,578 2,210,524 2,218,628 2,211,989 2,230,859 2,240,152 2,237,219 2,242,784 2,245,857 2,247,933 2,255,106 2,270,343 2,261,988 2,234,459 2,216,256 2,195,353 1,551,209 1,575,867 1,592,450 1,685,981 1,659,457 1,614,161 1,744,662 1,730,796 1,796,729 1,802,090 1,769,445 1,768,646 1,741,425 1,703,366 1,777,915 1,735,070 1,752,094 1,774,950 1,765,309 1,865,315 1,797,505 1,830,920 1,712,118 1,794,770 1,771,329 1,750,694 1,772,003 2,647,605 2,590,681 2,513,089 2,466,556 2,450,729 2,454,165 2,468,388 2,466,248 2,472,307 2,488,537 2,503,095 2,510,687 2,521,776 2,547,670 2,548,588 2,543,704 2,549,552 2,549,040 2,556,749 2,532,039 2,504,253 2,519,292 2,513,037 2,499,265 2,488,253 2,499,180 2,552,348 51.3 51.9 52.9 52.3 53.0 53.5 51.9 52.2 51.3 51.4 51.4 51.6 51.9 52.2 51.1 52.1 52.1 51.7 51.9 51.1 52.3 51.8 53.7 52.7 52.5 52.1 50.8 120,267 123,466 125,011 126,810 129,445 131,315 132,291 133,465 134,042 136,591 139,479 142,442 145,540 149,449 151,560 155,074 158,848 161,450 164,415 168,045 167,208 168,427 169,246 170,937 173,775 177,185 181,570 P g s w W I w o Movement of principal assets and liabilities of all Federal Reserve Banks during the calendar" year 1919—Continued. [In thousands of dollars.] Liabilities. Resources. 10 Discounted paper secured by Government war obligations. July 11 July 18 July 25 Aug. 1 Aug. 8 Aug. 15 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. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 1,684,940 1,579,728 1,616,210 1,612; 639 1.608,583 1.522,992 1,563,048 1,609,296 1,635,233 1,524,521 1,383,896 1,572,503 1,654,166 1,672,797 1,698,885 1,666,055 1,681,082 1,771,028 1,700,618 1,673,890 1,736,033 1,603,313 1,588,417 1,414,950 1,510,364 Other discounted paper. 251,367 248,347 251,392 235,300 225,535 220,347 211,262 I 205,838 212,185 230,317 261,985 309,779 361,771 401,058 422,842 416,084 447,465 418,461 439,000 450,747 478,176 504,795 550,999 580,162 684,514 Total discounted paper. 1,936,313 1,828,075 1,867,602 1,847,039 1,834,118 1,743,339 1,774,310 1,815,134 1,847,418 1,754,838 1,045,881 1,882,282 2,015,937 2,073,855 2,121,727 2,082,139 2,128,547 2,189,489 2,139,618 2,124,637 2,214,209 2,108,108 2,139,416 1,995,112 2,194,878 Bills bought in open market. 360,035 372,353 375,556 374,791 381,241 374,375 362,911 363,138 354,607 362,005 353,817 342,491 326,667 326,852 342,938 368,846 394,355 433,586 455,653 480,043 495,595 514,219 541,551 566,266 585,212 Total bills discounted and bought. 2,296,348 2,200,428 2,243,158 2,222.730 2,215; 359 2,117,714 2,137,221 2,178,272 2,202,085 2,116,843 1,999,698 2,224,773 2,342,604 2,400,707 2,464,665 2,450,985 2,522,902 2,623,075 2,595,271 2,604,680 2,709,804 2,622,327 2,680,967 2,561,378 2,780,090 Per cent (Ito3). 87.0 86.4 86.5 87.3 87.7 87.4 88.1 88.7 88.5 86.9 84.1 83.5 82.1 80.7 80.1 80.0 79.0 80.9 79.5 78.8 78.4 76.1 74.3 70.9 68.8 Per cent (Ito5). 73.4 71.8 72.0 72.5 72.0 71.9 73.1 73.8 74.2 72.0 69.0 70.7 70.6 69.7 68.9 68.0 66.6 67.5 65.5 64.3 64.1 61.1 59.2 55.2 54.3 Total cash reserves. 2,180,211 2,177,481 2,161,023 2,156,327 2,152,118 2,151,723 2,142,701 2,135,976 2,136,870 2,138,499 2,162,057 2,187,505 2,205,511 2,202,100 2,199,185 2,214,561 2,205,592 2,187,369 2,200,106 2,186,972 2,159,666 2,154,095 2,160,405 2,154,911 2,135,536 Net deposits. 1,842,433 1,769,496 1,796,561 1,766,181 1,820,817 1,688,675 1,621,147 1,629,797 1,624,J17 1,618,216 1,499,914 1,634,074 1,726,266 1,743,850 1,796,159 1,792,402 1,850,518 1,870,510 1,858,258 1,846,800 1,889,399 1,761,521 1,786,424 1,610,924 1,704,470 11 Ratio of cash reserves Federal Reserve to net notes deposit and Federal in Reserve actual note circulation. liabilities combined. 2,538,127 2,512,048 2,504,497 2,500,820 2,532,057 2,540,904 2,553,534 2,580,029 2,011,097 2,621,228 2,621,258 2,655,354 2,708,186 2,741,684 2,752,569 2,753,457 2,752,876 2,800,759 2,808,450 2,817,173 2,852,277 2,881,359 2,907,435 2,988,894 3,057,640 49.8 50. 9 50. 2 50. 5 49.4 50. 9 51.3 50. 7 50. 4 50.4 52.5 51. 0 49. 7 49.1 48.3 48.7 47.9 46.8 47. I 46.9 45. 5 46.4 46.0 46.8 44.8 12 Federal Reserve Bank notes in circulation, net liability. O w H O 184,800 180,911 193,849 200,945 205,318 201), 709 215,795 219,815 223,565 228,109 232,594 239,451 241,937 247,170 249,075 251,590 254,933 257,572 257,281 257,080 250,793 257,480 258,444 259,975 261,039 •§ ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 17 CONDITION DURING 1919 OF MEMBER BANKS IN PRINCIPAL CITIES. The Board receives reports on Friday of each week from member banks in leading cities showing the principal items of resources and liabilities. The subjoined table shows the number of reporting banks and the weekly changes in their resources and liabilities. In making a comparison between the consolidated figures for reporting member banks on various dates throughout the year, it should be borne in mind that the number of reporting banks has increased gradually from 763 to 797 as a result of accession of new members in the reporting cities. The total of United States securities owned by the reporting banks shows a decrease during the year of 433.5 millions, from 2,383.3 to 1,929.8 millions, notwithstanding the inclusion since June 6 of Victory notes under this general heading. Holdings of Treasury certificates, which were 1,269.9 millions on the first Friday of the year, reached a maximum of 2,328 millions on May 2, shortly before the close of the Victory loan campaign. Since October 10 these holdings have been below 1,000 millions, and at the close of the year stood at 789.9 millions, or 480 millions less than the total shown at the beginning of the year. Holdings of United States bonds other than those available for circulation—principally Liberty bonds—declined during the year from 827.6 to 632.8 millions, while Victory notes, holdings of which appeared for the first time on June 6, declined from 447.9 millions to about 238 millions. Between June 6 and the end of the year the net liquidation of United States securities by reporting banks amounted to 938.7 millions. Loans secured by United States war obligations, which amounted to about 1,220 millions on January 3, exclusive of rediscounts with the Federal Reserve Banks, showed a downward trend until the flotation of the Victory loan. During the month of June these loans increased considerably, reaching the high point of 1,438.2 millions on June 20, Since the latter part of October holdings of war paper show a perceptible decrease, the total of such holdings at the close of the year, 1,020.4 millions, being about 200 millions less than at the beginning of the year. Since August 15 loans secured by miscellaneous stocks and bonds have been segregated in the weekly statements of member banks. These loans on the whole have followed an upward course during the five months for which data are available, and the total on December 26, 3,300.4 millions, shows an increase of 373.5 millions over the total reported on August 15. Total loans and investments, including ordinary commercial discounts and acceptances, but excluding bills rediscounted at Federal Reserve Banks, show an increase for the year from 13,697.8 millions to 15,621 millions, the latter figure being the high point for the year, The rediscounts of these reporting banks with the Federal Reserve Banks amounted to 466.2 millions on January 3 and declined to 226 millions on May 23. During the last three months gradually 18 AST:NTUAL REPORT OF THE FEDERAL RESERVE BOARD. of the year the movement has been upward, and the total amount held under rediscount by the Federal Reserve Banks for the reporting banks on December 26, 899.6 millions, was nearly double the amount held at the beginning of the year. In addition to rediscounts, the Federal Reserve Banks extended accommodation to member banks by discounting their notes secured by United States war obligations, by customers' paper secured by such obligations, and to a much smaller extent by other eligible paper. The total of collateral notes held under rediscount by Federal Reserve Banks for reporting banks, which was 972.2 millions at the beginning of the year, reached its maximum of 1,312.1 millions on May 16, the Friday preceding the allotment of the Victory loan. During November and December, owing largely to the elimination of the differential between rates on war paper and ordinary commercial paper, the amount of member banks' collateral notes discounted by the Federal Reserve Banks shows some decline, the total on December 26 of 933.6 millions being 38.6 millions below the aggregate on January 3. Of the total amount of bills held by the Federal Reserve Banks under discount and rediscount for the reporting member banks on December 26, 1,236.5 millions, or about two-thirds, was secured by war paper, and 596.7, or about one-third, by commercial paper. Government deposits showed wide fluctuations in connection wTith the various operations of the Treasury, mainly the flotation of the Victory loan, the issue and redemption of the various loan and tax certificates series, and the collection of the quarterly installments of income and excess profits taxes. The high point, 1,180.6 millions, was reached on June 6 following the allotment of the Victory loan. Large deposits are shown also on dates following the payment of tax installments and the redemption by the Treasury of outstandingcertificates. Government deposits held by the reporting banks were considerably smaller during the last quarter of the year than during the preceding months. Other net demand deposits show an upward movement paralleling the increase in the loans and investments of the reporting banks. Except in the first quarter of the year, when demand deposits fell below 10,000 millions, the movement was upward, reaching its high point of 11,404 millions on December 12. Time deposits, partly as the result of accession to membership of trust companies with large savings departments, show an almost steady upward course, except for the few weeks in May preceding the placing of the Victory loan, and on December 26 reached a maximum total of 2,302.3 millions, or about 750 millions more than the total at the beginning of the year. Reserve balances of the reporting banks carried with the Federal Reserve Banks fluctuated within the narrow limits of 1,225.2 millions on February 7 and 1,461.6 millions on November 7. Cash in vault shows maximum amounts of about 429 millions' at the opening and close of the year, and a minimum of 336.5 millions on the Digitized forthird FRASER Friday in February. Principal resources and liabilities of member banks in leading cities on each Friday during the calendar year 1919. [In thousands of dollars.] Number of reporting banks. Other United United States United bonds bonds, States to se- includ- Victory cure notes. ing circulation. Liberty bonds! Jan.3 Jan. 10 Jan. 17 Jan.24 Jan. 31 Feb. 7 Feb. 14.... Feb. 2 1 . . . . Feb. 2 8 . . . . Mar. 7 Mar. 14.... Mar. 21 Mar. 2 8 . . . . Apr. 4 Apr. 1 1 . . . . Apr. 18 Apr. 2 5 . . . . May 2 May 9 May 1 6 . . . . May 2 3 . . . . May 2 9 . . . . June 6 June 1 3 . . . . June 20 June 27.... July 3 July 1 1 . . . . July 18 July 2 5 . . . . Aug. 1 Aug. 8 Aug. 15.... 763 769 768 772 772 771 771 772 771 771 772 772 772 773 773 773 772 771 773 773 773 772 770 771 "" 772 773 771 769 769 — 770 773 265,774 263,184 262,742 262,785 263,047 263,214 263,111 262,760 263,523 264,375 j265!735 ~"~ ~~~ 267,081 267,756 268,883 268,950 268,779 268,823 269,287 |268,188 268,095 1268,215 1268,378 1269,153 268,566 268,540 269,264 269,314 1269; 614 1269,001 269,622 269,743 270,231 827,569 797,991 825,595 799,999 769,727 739,108 723,713 698,676 695,678 675,632 |676,095 i665,441 1660,825 646,365 647,493 637,264 657,697 669,736 678,617 682,490 864,846 852,944 636,978 636,292 638,781 628,427 635,170 628,734 650,083 636,510 645,116 641,315 644,195 447,884 424,665 388,738 374,822 349,918 341,030 368,189 353,751 337,239 328,671 |329,442 United States certificates of indebtedness. 1,269,948 1,300,888 1,467,026 1,457,219 1,514,776 1,463,955 1,742,993 1,729,178 1,998,658 1,994,256 2,241,182 2,022,018 1,900,673 1,841,783 2,109,440 2,079,489 2,046,358 2,328,124 2,260,432 2,222,332 1,777,868 1,739,582 1,514,452 1,422,736 1,040,664 916,739 1,001,415 978,081 930,124 896,685 1.134,206 1,160,302 1,200,736 Total United States securities owned. 2,363,291 2,362,063 2,555,363 2,520,003 2,547,550 2,466,277 2,729,817 2,690,614 2,957,859 3,934,263 2,183,012 2,954,540 2,829,254 2,757,031 3,025,883 2,985,532 2,972,878 3,267,147 3,207,237 3,172,917 2,910,929 2,860,904 2,868,467 2,752,259 2,336,723 2,189,252 2,255,817 2,217,459 2,217,397 2,156,568 2,386,304 2,400,519 2,443,361 Loans Loans se- secured cured by by stocks All other United loans and and States investbonds war obliments.1 other gations. than U.S. bonds. 1,220,040 1,165,451 1,182,721 1,189,351 1,183,245 1,198,353 1,170,031 1,158,500 1,174,124 1,133,193 1,118,067 1,123,551 1,121,818 1,106,751 I,110,132 1,093,982 1,099,898 1,085,333 1,072,498 1,080,080 1,179,537 1,194,722 1,420,581 1,416,615 1,438,204 1,380,628 1,369,948 1,384,579 1,382,145 1,363,764 1,353,109 1,326,286 1,304,031 2,926,989 10,114,469 10,131,141 10,135,468 10,092,149 10,100,720 10,006,011 10,072,938 9,975,131 10,039,003 10,069,172 10,201,559 10,233,563 10,252,960 10,218,294 10,237,377 10,266,712 10,264,007 10,326,851 10,369,872 10,428,511 10,515,096 10,561,604 10,656,381 10,772,909 10,711,859 10,780,317 10,873,648 10,901,086 10,891,032 10,859.247 11,057,662 11,040.854 ",274,832 Total loans and investments. Bills Bills Reserve Net redisbalances demand Govern- payable counted with ment with Cash in deposits on Time with deFederal Federal Federal vault. which re- deposits. posits. Reserve Reserve Reserve serve is Bank. Bank. computed. Bank. 13,697,800 ,295,849 13,658,655 ,295,723 13,873,552 ,298,874 13,801,503 ,275.623 13,831,515 ,307', 454 13,670,641 225,219 255,438 13,972,786 225,462 13,824,245 253,166 14,170,986 262,249 14,136,628 298,.29O 14,502,638 236,335 14,311,654 244,821 14,204,032 267,552 14,082,076 252,477 14,373,392 275,986 14,346,226 288,044 14,336,783 273,146 14,679,331 299,739 |14,649,6O7 317,760 14,681,508 298,008 14,605,562 285,891 14,617,230 303,769 14,945,429 257,523 14,941,783 268,989 14,486,786 323,333 14,350,197 269,102 14,499,413 335,133 14,503,124 300,919 14,490,574 318,281 14,379,579 353,542 14,797,075 14,767,659 - 353,345 14,949,213 11' 360,554 428,791 411,603 386,621 368,296 353,950 353,177 361,138 336,514 337,698 346,035 348,814 347,755 350,048 349,579 |356,145 ; 349,952 353,173 347.320 1360,887 |360,596 1359,184 344,662 1368,882 !374,450 |358,588 1351,599 343,185 383,808 364,823 355,910 338,966 351,220 347,145 10,145,058 10,066,502 '10,080.102 9,995,791 9,952,408 9,786,907 9,911,667 9,945,267 9,988,464 10,035,620 10,311,435 10,058,842 10,054,438 10,097,465 10,047; 102 10,186,109 10,209,754 10,322,632 10,486,764 10,571,547 10,370,747 10,442,847 10,375,244 10,587,031 10,321,405 10,286,406 10,511,628 10,646,627 10,716,098 10,543,056 10,776,645 10,744,722 10,879,079 1,552,301 1,565,326 1,605,064 1,587,597 1,611,721 1,616,452 1,624,454 1,633,657 1,646,174 1,646,620 1,668,533 1,674,992 1,684,259 1,691,971 1,698,117 1,714,216 1,717,842 1,720,352 1,742,095 1,718,894 1,715,542 1,729,689 1,727,163 1,729,575 1,736,134 1,756,963 1,758,103 1,763,207 1,766,815 1,789,774 1,861,519 1,882,694 1,896,770 972,220 431,604 880,286 499,022 811,749 658,956 998,545 489,447 838,230 693,681 933,753 581,969 644,536 , 039,467 552,634 ,078,992 680,105 ,157,121 546,190 ,188,026 670,239 ,175,463 ;690,045 ,131,300 1608,561 ,140,828 J452,831 ,140,253 1723, 775 ,210,425 652,671 ,159;498 525,735 ,164,126 727,905 il ,244,113 551,099 !l ,254,624 434,848 il',312,063 627,897 1 ,226,986 541,247 |l , 250,202 1,180,592 ,084,182 945,738 ,119,496 823,236 ,062,494 782,610 ,025,844 601,481 ,113,102 516,420 ,154,341 412,925 ,068,817 405,161 ,100,684 517,149 ,092,941 551,406 ,088,510 624,744 ,006,902 466,163 446,707 402, 730 360,773 352,525 372,888 376,113 323,153 316,738 292,831 290,087 293,717 282,109 276,737 293,428 281,472 244,995 243,671 244,031 248,002 225,953 235,772 251,215 274,187 300,522 325,067 335,750 354,341 349,978 340,096 337,123 338,810 320,560 i Prior to Aug. 15 loans secured by stocks and bonds were included in this classification. I—1 CO Principal resources and liabilities of member banks in leading cities on each Friday daring the calendar year 1919—Continued. [In thousands of dollars.] United Other United Num- States United States United States ber of bonds bonds, States certifireport- to se- includ- Victory cates of ing cure notes.' ing indebtbanks. circu- Liberty edness. lation. bonds Aug. 22.... Aug. 29 Sept. 5 Sept. 12.... Sept. 19.... Sept. 26.... Oct. 3 Oct. 1 0 . . - . Oct. 1 7 . . . . Oct. 2 4 . . . . Oct. 31 Nov. 7 Nov. 14.... Nov. 2 1 . . . . Nov. 28.... Dec. 5 Dec. 12.... Dec. 19.... Dec. 26.... 775 774 774 774 776 776 776 776 778 783 784 783 782 794 795 796 796 796 797 268,959 269,252 269,393 269,551 270,365 269,706 269,656 269,539 269,365 268,689 268,612 268,209 268,997 269,073 269,097 269; 425 269,850 269,188 269,113 642,182 321,955 637,382 319,282 636,804 316,489 632,065 312,628 624,434 1312,726 619,968 302,930 615,624 304,608 611,714 J305,181 615,062 '305,866 632,321 1302,887 636,066 1298,637 633,950 =292,410 631,730 1278,659 634,368 275,522 628,221 265,981 631,374 256,465 628,728 251,624 626, 297 241,910 632,776 237,997 1,187,316 1,155,560 1,334,416 1,111,850 1,125,677 1,050,339 1,008,016 992,791 945,549 930,126 904,623 847,558 831,281 821, 016 816,540 862,017 792,722 844,309 789,882 Total United States securities owned. I Loans Loans se- secured cured by by stocks All other Total loans and loans and United and investStates bonds investments. war obli- other ments. than U.S. bonds. 2,420,412 1,307,872 2,381,476 1,302,062 2,557,102 1,294,285 2,326,094 1,309,370 2,333,202 1,343,049 2,242,943 1,333,697 2,197,934 11,318,944 2,179, 225 11,321,076 2,135,842 1,302,128 2,134, 023 1,252,406 2,107,938 1,234,057 2,042,127 1,141,049 2,010,667 1,061,438 1,999,979 1,060,216 1,979,839 1,053,663 2,019,281 1,023,107 1,942,924 1,020,574 1,981,704 1,022,633 1,929,768 1,020,384 2,943,553 2,915,491 2,956,596 3,012,523 3,027,173 3,053,110 3,122,614 3,105,934 3,141,026 3,166,168 13,246,059 13,246,138 13,202,988 J3,220,937 13,222,622 13,204,845 3,249,062 13,270,511 3,300,373 8,292,637 8,369,878 8,425,179 8,497,269 8,602,211 8,667,708 8,751,950 8,870,046 8,854,567 8,984,507 9,023,666 9,141,277 9', 147,264 9,182,416 9,195,138 9,186,687 9,246,697 9,339,958 9,370,426 to O Bills Reserve Bills Net redisbalances demand Govern- payable count ed with Cas]sh in deposits on Time ment with Federal vault which re- deposits. deFederal with Reserve serve is posits. Reserve Federal Bank. computed Bank. Reserve Bank. 964,474 286,616 350,507 10,794,660 968,907 325,776 345,605 10,802,505 233,162 342,058 365,330 10,901,999 145.256 383,481 368,649 11,220,961 305,635 249,379 358,276 10,973,284 297,458 332,919 |349,780 10,839,154 391,442 363,437 353,950 11,019,486 476,281 369,653 370,745 11,062,811 433,563 | 396,123 I3ti8,385 11,153,523 537,104 jl 382,356 374,581 11,179,529 611,720 II 403,171 358,771 11,284,902 570,591 11 461,651 ! 382,679 11,284,244 422,357 " 417,123 1381,503 11,354,900 463,548 409,113 1386,046 11,343,085 451,262 414,856 I3S4,543 11,337,614 438,920 406,193 395,987 11,203,994 459.257 1 . 402,429 393,558 11,404,289 614,806 il ,316,937 403,554 11,195,085 620,951 il ,347,175 429, 712 11,174,249 1,900,776 1,923,494 1,921,549 1,928,472 1,978,118 1,994,216 2,002,595 2,024,097 2,037,688 12,173,538 |2,194,156 2,209,169 '2,224,042 (2,288,186 2,288,133 2,270,678 2,283,673 2,293,384 2,302,344 573,213 524,017 686,443 505,296 1770,864 : 692,335 '604,485 1612,268 1482,804 438,955 1355,360 ,330,843 285,803 231,701 183,053 415,003 295,962 647,898 580,452 1,086,341 1,123,709 1,147,401 1,037,148 925,339 1,096,072 1,168,574 1,181,395 1,214,751 1,187,969 1,194,489 1,166,815 1,065,540 1,054,532 1,107,935 985,128 977,054 846,103 933,603 o t-TJ H Q H w o g ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 21 ACCEPTANCES. Reference has already been made to the efforts to develop an acceptance market in this country, and notwithstanding adverse conditions there has been a substantial growth in the use of the acceptance as a credit instrument especially adapted to financing the movement of goods between the United States and foreign countries, from one foreign market to another, and between localities within the United States. Incorporated banks were first permitted to accept about 10 years ago under the laws of some of the States in which they were domiciled, and the Federal Reserve Act authorizes member banks to accept drafts and bills of exchange 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; or which grow out of transactions involving the domestic shipment of goods, provided shipping documents conveying or securing title are attached at the time of acceptance; or which are secured at the time of acceptance by a warehouse receipt or other such document conveying or securing title covering readily marketable staples. The law also permits any member bank to accept drafts or bills of exchange drawn upon it having not more than three months7 sight to run, exclusive of days of grace, drawn under regulations to be prescribed by the Federal Reserve Board, by banks or bankers in foreign countries or dependencies or insular possessions of the United States for the purpose of furnishing dollar exchange as required by the usages of trade in the respective countries, dependencies, or insular possessions. There is a restriction, however, which applies to all three classes of acceptances, that no member bank may accept bills for any one person, firm, or corporation to an amount equal at any time in the aggregate to more than 10 per cent of its paidup and unimpaired capital stock and surplus, unless the bank is secured either by attached documents or some other adequate security growing out of the same transaction as the acceptance, and no bank shall accept such bills to an amount equal at any time in the aggregate to more than one-half of its paid-up and unimpaired capital stock and surplus. The Federal Reserve Board is, however, authorized, under such general regulations as it may prescribe to be applicable to all banks alike, to permit any member bank to accept bills growing out of transactions involving the importation or exportation of goods to an amount not exceeding at any time in the aggregate 100 per cent of its paid-up and unimpaired capital stock and surplus, but in no event shall a member bank's acceptances growing out of domestic transactions or for the purpose of furnishing dollar exchange exceed in the aggregate 50 per cent of its capital stock and surplus. The Federal 22 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Reserve Banks are authorized to discount acceptances of the kinds just described, which have a maturity at the time of discount of not more than three months' sight, exclusive of days of grace, and which are indorsed by at least one member bank, and they are also permitted under rules and regulations prescribed by the Federal Reserve Board to purchase and sell in the open market at home or abroad either from or to domestic or foreign banks, firms, corporations, or individuals, cable transfers and bankers1 acceptances and bills of exchange of the kinds and maturities made eligible for rediscount, with or without the indorsement of a member bank. Under the law the Board appears to have some latitude of discretion in the matter of permitting Federal Reserve Banks to discount renewal acceptances, and this authority was granted in a few instances and for comparatively small amounts during the war and immediately following the cessation of hostilities. The Board had repeated applications during the first half of the year for authority to discount renewal acceptances growing out of various foreign transactions, but has consistently declined to admit the eligibility of renewals except in cases where owing to delay in transportation or for other reasons it was clear that the renewal bill would meet all requirements applicable to the original acceptance, and that the goods covered by the acceptances were still in existence unconverted in form and capable of ready identification. In its last annual report the Board discussed the subject of acceptances at length and pointed out that there was not in this country any broad acceptance market such as exists in London. The development of such a market is necessarily a slow process and the burden of its support has fallen during the year 1919, as in previous years, upon the Federal Reserve Banks. This condition will doubtless continue until banks generally begin to invest funds temporarily idle in acceptances and until this method of employing funds appeals to the private investor. The Federal Reserve Banks most actively engaged in the purchase of acceptances in the open market deemed it necessary in the beginning to establish a more favorable rate both for the discount of these bills for member banks and for their purchase in the open market than was established for the discount of commercial paper. This policy merely involved a recognition of the high quality of these credit instruments and was adopted the more readily in order to stimulate the development of a new business with which the American bankers were, as a rule, unfamiliar and which was regarded as essential in upbuilding the Federal Reserve system and in financing the foreign commerce of the United States by American banks instead of by foreign banks. In establishing preferential rates for acceptances recognition was given to the fact that bills drawn against actual shipments of com ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 23 modities and accepted hy the strongest banks and bankers of the country were credit instruments of greater value and could therefore command a lower rate than the average of commercial paper coming from miscellaneous banks in the ordinary course of their discount operations. The Federal Reserve Banks in their open-market purchases have adopted the policy of keeping their buying rates more closely in line with the rates at which bills were offered in the open market by purchasing only at or slightly below those rates, taking into consideration the value of the bank indorsement required by Federal Reserve Banks, but which the bills did not bear ordinarily when they were sold on the outside. For example, when prime 90-day bills unindorsed were sold at 4J per cent, the Federal Reserve Banks would buy prime bills of like maturity well indorsed at 4 | to 4£ per cent, and as outside rates advanced the}" would advance their buying rates so that in December prime 60 to 90 day bills with good indorsements were bought by the Federal Reserve Banks at the rate for commercial paper, 4f per cent, although the same bills may have been offered by dealers in the open market without indorsement at 4$ to 5 per cent. A differential in favor of prime bills indorsed and rediscounted by member banks will be a necessary step in the further development of a broad and dependable acceptance market. The fact that exports from the United States during the year 1919 reached unprecedented figures, and exceeded imports in value by about $4,000,000,000, has aroused inquiry as to what expedients have been resorted to in the financing of exports. Goods have been sent out of the country in large volume, notwithstanding high prices, and the utter demoralization in the exchanges of many of the importing countries, conditions which ordinarity would greatly restrict our exports. Although there has been the largest trade balance in our favor in our history; our net visible outgo of gold for the year was $291,651,202, or, if the amount of gold held on December 31, 1919, for Federal Reserve account by the Bank of England is deducted, a net total of $160,330,713. These circumstances point to credit transactions on a large scale, the nature of which it is difficult even measurably to ascertain. The acceptances purchased by the Federal Reserve Banks are based mainly upon imports, and it appears that exporters have generally used their own capital and credit in financing their credit transactions abroad. IMPORTS AND EXPORTS. In considering the figures of our foreign commerce, it is necessary to realize that the great volume of our exports at present goes to countries to which sale is, in most cases, possible only if coupled with arrangements for extending credit, while the balance of trade is ad- 24. ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. verse to this country with countries in a position to pay by their own exports or in gold. Our foreign commerce for the 12 months ending December 31, 1919, showed a balance of exports amounting to $4,017,745,000. If this balance is subdivided so as to show sep arately our trade with countries where, broadly speaking, credit must be extended and countries which, in general, are in position to pay, either through exports or by the shipment of gold, the figures result as follows: Imports into the United States and exports from the United States in the trade with leading foreign countries during the calendar year 1919. [In thousands of dollars.] Imports. Group A—Allied and associated countries: United Kingdom. Canada. Newfoundland and Labrador France Belgium Italy * Portugal Roumania Serbia, Montenegro, and Albania. O-reece Russia in Europe. Russia in A s i a . . . . . Total Total. . . . . Group C—Neutral, including inactive belligerent countries: (a) Neutral countries in E u r o p e Netherlands . . . Sweden... Norway. . Denmark Spain... Switzerland Total (&) Non-European neutrals and inactive belligerents— Argentina Brazil Chile Cuba. . China British East Indies. Japan Total ... AH other countries Grand total 1 Excess of exports. 2,279,178 734,267 15,190 893,369 377,876 442,677 19,962' 6,588 2,928 42,884 27,758 54,679 1,969,989 239,573 9,829 769,498 370 176 383,629 13,547 6,588 2,928 14,273 24,805 47,969 1,044,552 4,897,356 3,852,804 2,391 10,624 2,098 42,212 92,761 1,788 39, 821 82,137 1310 15,113 136,761 121,648 75,507 13 826 7,371 6,202 49,392 27,688 255,134 133 063 135,135 163,965 102,820 76,146 179,627 119,237 127,764 157,763 53 428 48,458 179,986 866,263 309,189 494,694 5,361 123,871 7,700 59,048 6,415 28,611 2,953 6,710 Group B—Former enemy countries: Austria- Hungarv Germany. Bulgaria Exports. 686,277 1 199,158 233 571 82,442 418,610 154,154 322,148 409,853 155,968 114,656 53,472 278,391 105,515 81,514 366,365 43,190 i 118,915 i 28,970 1140,219 i 48,639 i 240,634 i 43,488 1,819,936 1,155,881 1664,055 844,819 865,890 21,071 3,904,406 7,922,151 4,017,745 Excess of imports. To make possible these large exports to countries not in a position to pay cash, credit or capital must have been advanced in one shape or another. The nature of these transactions can not, of course, be accurately analyzed. Between January 1, 1919, and December 1919, the Government of the United States made advances to Digitized for31, FRASER ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 25 allied and associated powers amounting to $1,757,989,481.95, and various loans were placed in the American market by foreign Governments. The remainder was undoubtedly covered in many ways* A large part, approximately $2,000,000,000, has probably fallen, directly or indirectly, upon the commercial banks throughout the country, and to this fact is to be attributed in corresponding measure the expansion of bank credit experienced during the year. While such credits would not be eligible for rediscount at Federal Reserve Banks, the banks extending them have undoubtedly in whole or in part recouped themselves through the rediscount of eligible paper with the Federal Reserve Banks. The Board has frequently expressed itself as opposed to the financing of exports which require long-term credit through banking operations as distinguished from appeals to the securities market, and takes occasion to repeat that view in this summary of general conditions. FISCAL AGENCY OPERATIONS. Although the conclusion of the armistice ended the more strenuous stage of Treasury financing, there has been no slackening of the duties imposed upon the Federal Reserve Banks as fiscal agents of the Government. These banks, as heretofore, have handled all details connected with the sale, allotment, distribution, and redemption of Treasury certificates of indebtedness among member and nonmember banks of their respective districts, have received subscriptions to the Victory loan, collected all note and certificate payments, and redeposited the funds with depositary banks, withdrawing them as required by the Treasury. They have also effected the various exchanges of bonds and redemptions of certificates and have paid and canceled coupons of war securities as they have fallen due and have been presented. By means of interclistrict settlements through the gold-settlement fund, the Treasury has continued to be able 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 Government disbursements are made. These transfers have involved very large sums, and the number of transfers to New York alone over the wires of the Federal Reserve System amounted in 1919 to 2,883. The subjoined table presents a detailed statement of the year's operations covering Victory notes, Treasury certificates of indebtedness issued in anticipation of Victory notes, certificates issued in anticipation of tax payments, and loan certificates. Allotments of Victory notes and Treasury certificates from Jan. 1 to Dec. 81> 1919. to Treasury certificates issued. In anticipation of— Federal Reserve Bank. Victory notes. Grand total. Victory loan. * Total .1371, 910,150 1,318. 041,150 376, 290,100 443, 802,250 210, 8S9,300 133, 0S0,800 694, 330,000 201, 787,600 170, 076,650 192, 429,300 84, 002,500 294, 905,050 i 4,491,544,850 $382,881 000 $156, 158,000 1,056, 238,500 1,833,198'; ooo 335,797! 000 101, 194,500 452,061,500 [ 292, 972,000 148,981' 500 75, 856,000 56, 515,000 115,362! 000 772,990! 500 j 337, 976,000 53, 700,500 199,737, 000 39, 601,000 172,115, 500 30, 878,500 145,851, 500 45 664,000 85,349, 500 111 720,000 308,075, 000 4,952,400,000 2,358 474,000 Total certificates. > Total tax certificates. 1919 taxes. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis.. Minneapolis Kansas City Dallas San Francisco Loan certificates. Tax payments. $117,145,500 926,614,500 133", 223,500 172,204,000 45,30(), 000 55,243,000 267.842,500 65', 929,500 39' 303,000 40,959,500 65,296,500 135,381,500 2,064,482,000 w $273,303,500 1,982,883,000 234,418,000 465,176,000 121,165,000 111,758,000 605; 818,500 119,630,000 78,904,000 7.1,838.000 110,960,500 247,101,500 $146,092,000 690,074,500 111,296,500 137,716,000 36,428,500 58,870,000 228,736,500 68,972,500 59,114,000 66,238,500 65,709,500 132,725,000 $802, 276,500 4,506' 155 500 681, 511,500 1,054, 953,500 ' 306;575,000 285, 990,000 1,607. 545,500 388',339,500 310, 133,500 283, 928,000 262 019.500 687'.901; 500 $1,174 186,650 5,824! 196,650 1,057! 801,600 1,498! 755,750 517, 464,300 419;070,800 2,301,875,500 590, 127,100 480, 210,150 476,357. 300 346,022,000 982; 806,550 4,422,956,000 1,801,973,500 11,177,329,500 15,668,874,350 o w H o i Excluding $1,181,792,000 of Treasury certificates in anticipation of the Victory loan allotted through the Federal Reserve-Banks during 1918. NOTE.—Above figures are exclusive of $154,668,000 of 2 per cent 1-year certificates sold to Federal Reserve Banks to secure bank-note circulation, also of special temporary !ertificates sold to Federal Reserve Banks, none of which were outstanding on Dec. 31, 1919. o ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 27 The detail work accomplished by the several Federal Reserve Banks in their respective operations as fiscal agents of the Government has been very heavy and has required the services, in the aggregate for the 12 banks, of about 2,500 officers and employees. The number of banks, members and nonmembers, through which subscriptions to the Victory loan were received by the Federal Reserve Banks was 28,120, and the Federal Reserve Banks secured subscriptions to Treasury certificates of indebtedness from 21,895 member and nonmember banks. During the year there passed through the Federal Reserve Banks and branches 32,899,724 Government checks amounting to $14,518,470,830; the banks received, paid and cancelled Liberty bond coupons and Victory note coupons to the number of 102,139,832, aggregating $515,924,896; and they redeemed Treasury certificates of indebtedness to the extent of $10,590,458,500. Payments for subscriptions to the Victory loan were received as follows: In cash, $1,050,974,052; in credit upon the books of designated depositaries, $2,043,163,341; in certificates of indebtedness, $1,397,200,508. The balance reported unpaid on December 31, 1919, was $206,949. Payments for subscriptions to Treasury certificates in anticipation of 1920 taxes were received as follows: In cash, $198,641,103; in credit, $1,512,281,397; maturing certificates of former issues, $353,559,500. Payment for subscriptions to Treasury loan certificates were received as follows: In cash, $199,173,116; in credit, $1,377,629,384; certificates of former issues, $225,171,000. The number of bank depositaries designated by the Secretary of the Treasury through the Federal Reserve Banks was 7,632 on December 31. The average daily Government balance with these depositaries during 1919 was $737,665,000, and as security for these deposits, the Federal Reserve Banks approved and received collateral of the average face value of approximately $1,338,304,000. In addition to the fiscal agency operations outlined above the Federal Reserve Banks during the year sold Treasury savings certificates amounting to $14,961,000; war savings stamps amounting to $13,118,000; and thrift stamps amounting to $1,898,000. The Treasury balances carried with the Federal Reserve Banks have been subject to wide fluctuations owing to the constantly changing requirements of the Treasury and to the seasonal character of collections of internal revenue taxes made for the Treasury's account. The following table exhibits the maximum, minimum, and daily average amount of Government deposits in the 12 Federal Reserve Banks during each month of 1919. 178983—20 3 28 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Government deposits held by Federal Reserve Banks. [In thousands of dollars.] Month. January... February.. March April May June July August September. October... November. December. Year. Maximum. Minimum 150, 210, 292, 169, 194, 245, 185, 112, 85, 173, 106, 124, 292,147 M E M B E R S H I P O F STATE BANKS AND TRUST Daily average. 20,974 22,745 60,023 38,069 64,448 3,917 43,190 37,896 30,253 51,789 31,700 30,959 71,379 129,750 176,960 99,094 126,378 111,614 112,601 66,106 53,970 88,300 79,978 70,301 3,917 98,755 COMPANIES. The movement of State banks and trust companies into the Federal Reserve System has continued throughout the year in a fairly satisfactory manner, although on December 31 about 8,021 eligible State institutions were not members. The Board is cooperating with the Federal Reserve Banks in a continuous campaign for State bank membership, and one member of the Board has been detailed to supervise these activities. The American Bankers' Association has continued its committee on Federal Reserve membership, which has done such effective work in impressing upon the management of State banks the advantages to be obtained from membership in the system. On December 31, 1918, the total membership of State banks and trust companies was 930, representing an aggregate capital and surplus of $759,790,000, and total resources of about $7,482,000,000. On December 31, 1919, the membership of other than national banks had increased to 1,181, representing a total capita] and surplus of over $891,200,000, and total resources of about $9,913,700,000. Favorable legislation in a number of States as well as cordial cooperation by nearly all of the State banking authorities have aided materially in obtaining these results. The movement of State banks and trust companies into the Federal Reserve System during 1919, as well as the percentage relationship between the number, capital, and surplus, and total resources of such members and of all State banks and trust companies reported as eligible for membership, are indicated in the following tables: 29 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Number, capital and surplus, and total resources of State banks and trust members of the Federal Reserve System. companies, [Amounts in thousands of dollars.] Federal Reserve district. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas C i t y . . . Dallas San Francisco. Total Num- Capital and ber. surplus. June 30, 1919. Mar. 4, 1919. Dec. 31, 1918. Total resources. 31 101 29 66 37 54 288 44 70 27 97 57,656 277,492 66,588 90,857 16,002 26,424 138,827 43,970 8,259 8,489 9,083 16,143 599,596 3,488,611 324,408 597,288 110,430 249,532 1,363,695 347,683 81,861 96,796 58,254 163,959 930 759,790 7,482,113 Num- Capital and ber. surplus. 32 102 31 73 39 55 296 43 72 29 107 90 Total re- Num-i sources. ber. NnmhPr Capital and Number. Boston New York 36 117 38 605,236 3,598,070 352,963 661,562 114,973 245,691 1,446,951 350,880 90,122 104,648 65,356 164,609 36 110 36 80 42 57 305 52 75 31 115 103 60,908 297,999 68,379 93,168 16,901 27,396 142,963 41,618 9,112 6,969 10,538 16,960 657,007 4,021,687 376,861 681,624 131,663 264,63S 1,556,249 333,69690,671 94,574 70,231 173,681 775,474 7,801,061 1,042 792,911 8,452,582 Dec. 31, 1919. Total resources and Number. Capital surplus. 692,320 1,203,806 359,318 760,659 158,886 366,831 .,681,302 391,268 101,601 107,909 87,196 513,217 36 122 38 97 46 64 326 42 113 120 64,233 306,574 70,328 97,330 18,087 34,529 153,837 44,086 10,087 7,934 9,779 37,329 1,135 854,133 9,424,313 Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City... Dallas San Francisco.. Total.. surpluSi 321 Total resources. 58,414 286,110 67,000 91,785 16,183 27,059 141,116 44,440 8,852 8,759 10,025 15,731 Nov. 17, 1919. Federal Reserve district. and surplus. Total 47 114 137 64,335 320,123 70,455 101,871 19,285 35,553 157,019 44,354 10,455 8,353 10,391 48,930 719,918 4,283,636 370,462 803,439 166,007 389,854 1,751,177 409,086 107,139 119,953 97,103 1,181 891,174 9,913,707 Statement showing comparison between the number, capital and surplus, and total resources of(l) member banks, (2) banks eligible for membership in Federal Reserve System (including both member and nonmember banks), and (3) all banks in the United States, exclusive of savings and private banks, as of June 30, 1919. [Amounts in thousands of dollars.] Capital and surplus. 1. Member banks: National State banks and trust companies . . Total 2. Banks eligible for membership: Member banks Nonmember banks Total 3. All banks in the United States, exclusive of savings and private banks: Member banks Nonmember banks Total.. cent Number. Per of total. Amount. Per cent of total. Aggregate resources. Amount. Per cent, of total. 7,780 88.2 1,989,597 71.5 20,791,147 71.1 1,042 11.8 792,911 28.5 8,452,582 28.9 8,822 100.0 2,782,508 100.0 29,243,729 100.0 8,822 8,160 52.0 48.0 2,782,508 1,074,365 72.1 27.9 29,243,729 8,547,623 77.4 22.6 16,982 100.0 3,856,873 100.0 37,791,352 100.0 8,822 17,560 33.4 66.6 2,782,508 1,376,023 66.9 33.1 29,243,729 11,209,020 72.327.7 26,382 100.0 4,158,531 100.0 40,452,749 100.0 30 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. State banks andjtrustlcompanies, members and nonmembers of the Federal Reserve System, classified according to institutions with combined capital and surplus of (1) $1,000,000 and over, and (2) less than $1,000,000, as of June SO, 1919. [Amounts in thousands of dollars.] (1) BANKS AND TRUST COMPANIES WITH COMBINED CAPITAL AND SURPLUS OF $1,000,000 AND OVER. Members Federal Reserve district. Number. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St Louis Minneapolis . K a n s a s City . . Capital and surplus. Total . . . Total resources. 13 45 12 15 6 10 24 12 49,850 275 667 60,100 79,200 9,700 i 18,497 100,550 33,172 536,267 3 74fi Sfifi 310.564 537,664 77,848 185,934 1.070.758 252,749 2 3,666 1 51.443 . . . . Dallas San Francisco Nonmembers. Number. Capital and surplus. 8 25 28 18 14,800 91,277 56,278 38,920 36,390 1,000 21,200 6,525 4,050 *i 3 3 4,700 57,589 3 21 142 634,436 6,827,182 136 Total resources. 113,020 683,730 269,386 209,583 173,794 9,730 181,591 41,498 14,137 10,913 564,498 4,742 43,366 318,548 2 271,880 (2) B A N K S AND T R U S T COMPANIES W I T H COMBINED CAPITAL AND S U R P L U S OF LESS T H A N $1,000,000. 23 65 24 65| Boston New Y o r k . . . . Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. 47 281 Total... 900 40 j 75 ! 29 115 100 11,058 22,332 8,279 13,968 7,201 8,899 42,413 ! 8,446 | 9,112 3,969 I 10,538 12,260 158,475 120,740 275,321 66,297 143,960 53,815 78,704 485,491 80,947 90,671 43,131 70,231 116,092 155 238 312 533 561 720 2,016 926 687 824 397 655 28,407 48,343 70,423 73,077 55,263 53,948 160,277 63,949 40,510 49,765 34,092 77,763 315,808 491,510 514,415 613,191 403,563 366,660 1,537,193 462,665 358,906 403,445 157,980 650,407 1,625,400 8,024 755,817 6,275,743 Total number, capital and surplus, and resources of State banks and trust companies, both member and nonmember reported as eligible for membership on basis of capital requirements; also ratios of number, capital and surplus, and resources of State bank and trust company members to totals for all State banks and trust companies reported as eligible for membership, as of June 30, 1919. [Amounts in thousands of dollars.] Number of banks. Federal Reserve district. New York Philadelphia . . . Cleveland . . Richmond Atlanta Chicago St Louis Minneapolis Kansas City Dallas . San F r a n c i s c o . . . . . . Total Capital and surplus. Members. 3. Per cent (2+1). 4. Total 199 373 376 631 619 778 2,331 981 765 855 515 779 36 110 36 80 42 57 305 52 75 31 115 103 18.1 29.5 9.6 12.7 6.8 7.3 13.1 5.3 9.8 3.6 22.3 13.2 104,115 437,619 195,080 205,165 108,554 82,344 324,440 112,092 53,672 56,734 49,372 138,089 60,908 297,999 68,379 93,168 16,901 27,396 142,963 41,618 9,112 6,969 10,538 16,960 58.5 68.1 35.1 45.4 15.6 33.3 44.1 37.1 17.0 12.3 21.3 12.3 9,202 1,042 11.3 1,867,276 792,911 1. Total eligible. 2. eligible banks. 6. Per 5. Member cent banks. (5+4). Total resources. 7. Total 8. 9. Per cent eligible banks. Member banks. 1,085,835 5,196,927 1,160,662 1,504,398 709,020 641,028 3,275,033 837,859 463,714 498,019 239,124 1,388,586 657,007 4,021,687 376,861 681,624 131,663 264,638 1,556,249 333 696 90,671 94,574 70,231 173,681 60.5 77.4 32.5 45.3 18.6 41.3 47.5 39 8 19.6 19.0 29.4 12.5 42.4 17,000,205 8,452,582 49.7 (8-4-7). ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 31 In the table immediately following will be found a statement of the total resources as of June 30, 1919, of all member banks, from which it will be seen that the resources of the State banks and trust companies which are members of the system are but 95 millions less than those of the nonmember banks reported as eligible for membership, and that the total resources of all member banks are about three and one-half times as great as those of eligible nonmember banks. The resources of the member banks are 72.3 per cent of the total resources of all banks in the United States, exclusive of savings and private banks. (1) Member banks: National State banks and trust companies T o t a l resources . $20, 791,147, 000 8, 452, 582,000 Total 29, 243, 729, 000 (2) Nonmember State.banks and trust companies reported as eligible for membership in the Federal Reserve System 8, 547, 623, 000 (3) All banks in the United States, exclusive of savings and private banks: National 20, 791,147, 000 State banks and trust companies 19, 661, 602, 000 Total 40, 452, 749, 000 (4) Ratio of total resources of all member banks to total resources of nonmember banks reported as eligible for membership (per cent) 342. i Ratio of total resources of member banks to total resources of all banks in the United States, exclusive of savings and private banks (per cent) 72.3 RATES OF EARNINGS BY CLASSES OF ASSETS. Prior to the revision of discount rates in November, the rates of earnings of the Federal Reserve Banks during the year from the various classes of investments fluctuated between comparatively narrow limits. Earnings from discounts showed a maximum average rate of 4.53 per cent in December and a minimum average rate of 4.13 per cent in August. Variations in the average rate correspond more or less to the relative volume of war paper taken during the respective months. Average rates of earnings from acceptances purchased in the open market because of the special preferential treatment of war paper were slightly higher than the average rates from, discounts, and the average rates earned by the Federal Reserve Bank of New York were somewhat lower than corresponding rates reported by the other banks. Earning rates were fairly level during the first 10 months of the year, ranging from 4.19 per cent in June to 4.29 per cent in January. Increases in both the discount and open-market rates at the Federal Reserve Banks are reflected in higher rates of earnings for November 32 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. and December, the rate of earnings from, discounted paper showing a rise from 4.15 in October to 4.40 in November and 4.53 in December, while the rate of earnings from open-market paper rose from 4.22 in October to 4.33 in November and to 4.53 in December. Average rates of earnings from United States securities ranged between 2.17 per cent in September and 2.43 per cent in April. With a steady increase in the amount of one-year 2 per cent certificates included in the United States security holdings of the banks, a corresponding decline in the average rate of return might have been expected, but the average monthly rates of return did not show such a decline for the reason that the ratio was affected by the much larger amounts of special certificates held by the banks at various intervals for one or more days to cover Treasury overdrafts. The effect of these holdings is seen in the relatively low average rates obtaining in January, February, and September. As a result of this development the average rate of return on all investments between January and October moved more or less in conformity with the average monthly rate of return from discounts, [n September, however, when the holdings of special 2 per cent Treasury certificates were particularly heavy, the average rate of return from all investments shows a decline notwithstanding the simultaneous rise in the percentage of return from bills discounted. Rates of earnings from investments of the Federal Reserve Banks. i BiHs Bills dis- i bought in counted. | open i market. January February March ipril tfay Tune y iusust September October Sfovember December Average for year. 4.21 4.18 4.16 4.16 | 4.15 I 4.20 ! 4.15 i 4.13 ! 4.17 I 4.15 | 4.40 j 4.55 ! 4.23 ! 4.29 4.25 4.26 4.23 4.25 4.19 4.27 4.22 4.27 4.22 4.33 4.54 4.30 United States securities. Total investments. 2.26 2.31 2.41 2.43 2 42 2.33 2.24 2.21 2.17 2.18 2.22 % 19 2.26 4.04 4.03 4.02 4.01 3.99 4.01 3.98 3.93 3.91 3.95 4.16 4.29 4.04 DISTRIBUTION" OF EARNING ASSETS AT THE OPENING AND CLOSE OF THE YEAR. During the past year total earning assets of the Federal Reserve 3anks increased by 805 millions, from 2,275 to 3,080 millions. All ;hree main classes of assets show considerable gains for the year— liscounts by 365 millions, open market purchases by 293 millions, tnd United States securities by A 45 millions. ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 33 Largely as the result of the reduction during the year in the volume of outstanding Treasury certificates, the holdings of "war paper" (i. e., discounted and rediscounted paper secured by United States war obligations) show a decline from 1,535 to 1,510 millions. Of the later date total, over 75 per cent was composed of member banks' collateral notes, as against about 50 per cent at the beginning of the year. Considerable gains are shown in the December 26 figures of discounted bank and trade acceptances. The largest increase, however, under the general head of discounted bills is shown for ordinary commercial paper, the holdings of which assumed particularly large proportions during the last two months of the year, following the adoption of revised discount rates which reduced and subsequently eliminated in part the differential in favor of war paper maintained during the greater part of the year. There has been a steady and increasing flow of bank acceptances, based on foreign trade transactions, into the portfolios of the Federal Reserve Banks, holdings of this class of paper at the close of the year, 452.5 millions, being 317.8 millions larger than at the beginning of the year. Larger holdings are also shown for trade acceptances based upon foreign trade transactions and for dollar exchange bills, while holdings of both bank and trade acceptances based on domestic trade transactions were smaller at the close of the year than at its opening. As against a decrease of 3 millions in the holdings of United States bonds (largely circulation bonds and 3 per cent conversion bonds) the banks show an increase during the year of 148.4 millions in Treasury certificates, the holdings of this class of securities constituting nearly 9 per cent of the total earning assets of the banks, compared with 5.5 per cent on the first Friday of the year. Changes in classes of earning assets during 1919. [In thousands of dollars.] J a n . 3, 1919. Dec. 28,1919. Bills discounted: Secured by Government war obligationsCustomer's paper Member banks' collateral notes Total Otherwise secured and unsecured— Agricultural paper Live-stock paper Member banks' collateral notes Bankers' acceptances Trade acceptances Other commercial and industrial paper. Total Total discounted bills Increase. 734,610 800,060 • 352,588 1,157,766 i 382,022 357, 706 1,534,670 1,510,354 124,316 28,108 27,247 18,365 1,596 16,633 203,245 24, 825 26,243 2 8,256 18,183 30,992 576,025 i 3,283 i 1,004 i 10,109 16,587 14,359 372, 780 295,194 684,524 389,330 1,829,864 2,194, 878 365,014 2 Includes $20,000 secured by War Finance Corporation bonds. 34 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. Changes in classes of earning assets during 1919—Continued. [In thousands of dollars.] Jan. 3, 1919. Dec. 26,1919. Increase. Bills bought in open market: Bankers" acceptances— In the foreign trade In the domestic trade Dollar exchange bills Total ?. Trade acceptances— In the foreign trade In the domestic trade.. Total Total bills bought in open market United States bonds . United States Victory notes United States certificates of indebtedness All other earning assets 134,703 147,830 1,647 452,460 121,169 3,914 317,757 i 26,661 2,267 284,180 577,543 293,363 3,426 2,663 5,024 2,645 6,089 7,669 1,598 i 18 1,580 290,269 585,212 294,943 26,834 64 273,507 12,990 64 148,444 3,080,495 805,462 29,824 . 125,063 13 Total earning assets. . ... 1 2,275,033 ' Decrease. EARNINGS AND OPERATING EXPENSES OF FEDERAL RESERVE BANKS. The number of officers and employees of each of the Federal Reserve Banks at the close of the year 1919, as compared with the number at the end of the previous year, is as follows: Federal Reserve Bank. Boston New York.. Philadelphia Cleveland Richmond.. Atlanta Chicago St. Louis . . . IVf inneapolis Kansas City Dallas San Francisco Total Number of Number of officers and officers and employees employees Dec. 31, Dec. 31, 1918. 1919. 585 2,657 423 589 254 317 815 385 267 480 403 755 2,896 647 626 401 386 1,199 541 287 583 505 531 567 7,706 9,393 The operating expenses of all the banks have been considerably higher than in previous years. Member banks, private banking firms, and corporations have drawn or attempted to draw upon the Federal Keserve Banks for officers and employees, and the continued advance in the cost of living also has made it necessary to raise salaries. There has been no increase in the maximum salary paid nor have &ny salaries been approved by the Board for Federal Reserve Bank officers as high as those paid officers of similar rank by the larger commercial banks in the several Federal Reserve cities. 35 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. The average salary paid officers and employees by each Federal Reserve Bank is as follows: Federal Reserve Bank. Boston New York Philadelphia.. Cleveland Richmond Atlanta , Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco, Average salary of officers,. Average salary of employees. $8,542 10,540 | 8,318 ! 7,347 I 6,215 I 5,080 ' 6,666 6,331 5,985 5,554 5,400 5,700 $1,184 1,206 1,133 1,206 1,031 1,054 1,200 1,051 1,090 1,194 1,167 1,255 The Federal Reserve Banks have strengthened their auditing and examining departments, and other necessary expenses have been incurred in bringing the banks in closer contact with the member and nonmember banks of their districts. The Federal Reserve Banks also paid all costs of transportation of currency sent to and received from member banks, and some of the Federal Reserve Banks paid all costs of returning to member banks the collateral lodged with them by their member banks as security for advances made by the reserve banks. Notwithstanding the very considerable increase in the expense accounts of the Federal Reserve Banks, the combined current net earnings of the 12 Federal Reserve Banks for the year 1919 amounted to $82,038,785, as compared with $55,446,979 for the year 1918, or an increase of $26,591,806. The combined gross earnings were $102,380,583, as compared with $67,584,417 in 1918. Provision is made for the division of earnings of the Federal Reserve Banks in section 7 of the Federal Reserve Act, which provides in part that "after all necessary expenses of a Federal Reserve Bank have been paid or provided for, the stockholders shall be entitled to receive an annual dividend of six per centum on the paid-in capital stock, which dividend shall be cumulative." As originally enacted, this section further provided that "after the aforesaid dividend claims have been fully met, the net earnings 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 it shall amount to forty per centum of the paid-in capital stock of such bank." The act of March 3, 1919, amended this section to read as follows: "After the aforesaid dividend claims have been fully met, the net earnings shall be paid to the United States as a franchise tax except that the whole of such net earnings, including those for the year ending December 31, 1918, shall be paid into a surplus fund until it shall amount to one hundred per centum of the subscribed capital stock of such bank, and that thereafter ten per centum of such net earnings shall be paid into the surplus.7' 36 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. At the end of the year 1917, and before section 7 was amended, the Federal Reserve Banks of Boston. New York, Richmond, Atlanta, Chicago, and Minneapolis had paid all accumulated dividends to the end of the year 1917, and after charging off all expenses and making the depreciation allowances authorized by the Board, carried to surplus the sum of $1,134,234 and paid an equal amount to the Government as a franchise tax. The six remaining Federal Reserve Banks not having earned a sufficient amount to pay their accumulated dividends, carried nothing to surplus and made no payment to the Government at the end of the year 1917. The Federal Reserve Bank of New York having provided for all expenses and depreciation charges, and having paid all accumulated dividends, carried to surplus out of its net earnings for the year 1919, the sum of $23,964,678. It has therefore accumulated the maximum proportion of surplus provided for in section 7, as amended, of ICO per cent of its subscribed capital, plus $300,433, being 10 per cent of the balance of its net earnings for the year. The remaining 90 per cent ($2,703,894) has been paid to the Government as a franchise tax. The percentage of surplus to subscribed capital of all Federal Reserve Banks at the close of business December 31, 1919, is as follows: Federal Reserve Bank of— Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Per cent. 58. 80 100. 67 55. 84 47. 67 66. 26 68. 48 57. 87 45. 81 58. 05 76.15 44. 29 65. 56 The Board desires to call attention to the fact that the very large earnings of the banks are due to their abnormally large volume of discounts forced upon them first by the war and then by conditions growing out of the war. At the close of the year 69 per cent of the loans and discounts were secured by Government war obligations. The banks have been able to maintain their reserves while carrying this heavy loan account only because a correspondingly large volume of Federal Reserve notes has been needed to meet the demands of commerce and business. As conditions become more normal, and as recourse is had by member banks to Federal Reserve Banks less constantly, and when accommodations are sought principally for the purpose of meeting unexpected demands or seasonal requirements, the gross earnings of the Federal Reserve Banks will be reduced very substantially, and as it is not probable that the expense accounts can be reduced in a corresponding degree Digitized for theFRASER net earnings in future are likely to be very much smaller. 37 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. The Board takes occasion again to point out that it was not until June 30, 1918, that all cumulative dividends were paid by all of the Federal Reserve Banks. At the close of the year 1918 each of the Federal Reserve Banks had set aside a reserve, out of surplus earnings, for the Government franchise tax, the aggregate of all being $26,728,440. These reserves were transferred to the surplus funds of the respective banks on March 5, 1919, under authority of the act of March 3, 1919, above referred to. The table below shows the capital and surplus of each Federal Reserve Bank on December 31, 1919, the gross and net earnings for the year, the dividends paid, the amounts transferred in each case to surplus, and the payments to the Treasury for account of the Government franchise tax: Gross earnings. Federal Reserve Bank. Current net earnings. earnings Miscellaneous Net tor deductions available dividends, from current 'A net earnings. I l Dividend payments. $7,497,583 35,332,412 8,609,880 7,800,829 4,775,324 4,416,001 12,012,078 3,884,478 3,007,041 4,961,482 3,062,251 7,021,224 $5,825,758 29,598,067 6,834,695 6,404,798 3,863,397 3,443, 784 9,463,754 2, 709,685 2,450, 550 3,775,413 2,079,415 5,589,469 $48,377 j 1,638,448 I 175,526 ! 311,013 I a 13,869 ! 61,387 I 887,550 i 354,531 I 116,607 i a 147,949 i 37,551 I 202,109 i $5,777,381 27,959,619 6,659,169 6,093,785 3, 877,266 3,382,397 8,576,204 2,355, 154 2,333,943 3', 923,362 2,041, 864 5,387, 360 $414,447 1,291,047 462,380 556,785 252,872 197,397 700, 807 234,660 180,186 228,755 196,335 296,161 Total 102,380,583 82,038,785 3,671,281 ! 78,367,504 5,011,832 Federal Reserve Bank. Paid to Transferred ! United States Subscribed to surplus | Government capital account, j as a franchise Jan. 1,1920. i tax. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St, Louis Minneapolis Kansas City Dallas San Francisco Total. | ! | ; ! j i | ' j i I 15,362,934 23,964,678 6,196,789 5,537,000 3,624,394 3,185,000 7,875,397 2,120,494 2,153,757 3,694,607 1,845,529 5,091,199 70,651,778 Ratio of surplus to subSurplus scribed capiaccount, tal on Jan. 1, 1920. Jan. 1, 1920. ,215,000 ,781,500 ,768,300 ,065,900 ,784,000 ,856,400 694,300 128,900 147,900 031,100 841,400 499,500 $8,359,034 45,081,933 8,805,132 9,089,000 5,820,463 4,695,000 14,291,643 3,723,805 3,569,000 6,116,033 3,029,937 7,539,374 Per cent. 58.80 100.67 55.84 47.67 66.26 68.48 57.87 45.81 58.05 76.15 44.29 65.56 174,814,200 120,120,354 68.71 a Credit. PERMANENT BUILDINGS FOR FEDERAL RESERVE BANKS. In its report for the year 1918 the Board referred to the necessity for providing Federal Reserve Banks with permanent and more adequate physical facilities for the transaction of their business and called attention to the purchases of sites by eight of the banks. All of the banks have now provided themselves with suitable building sites. The property acquired by the Federal Reserve Bank of Boston early in the year 1918 at a cost of $1,000,000 was found to be inade quate because of the increased busine ss of the bank, and a few 38 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. months ago the Board approved of the sale of this property at a net profit of approximately $140,000 and the purchase at approximately $1,400,000 of other real estate of nearly three times the area of that originally acquired. As a rule the real estate acquired by the Federal Reserve Banks may be classified as improved property, but, except in Philadelphia, the buildings can not be utilized permanently and will have to be razed before work can be begun on new construction. While it is not believed that the existing buildings add materially to the value of the land, they are assessed separately, and in cases where new construction has been begun or where plans have been completed the Board has approved the charging off by the Federal Reserve Banks of amounts equal to the assessed value of the buildings to be removed. The real estate and building account of each of the Federal Reserve Banks at the close of business December 31, 1919, is as follows: Boston New York. Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco $1,102, 827 3, 094, 030 500, 000 640, 392 504, 025 463, 302 2,116,149 355, 737 500, 000 461, 687 399, 399 231, 375 In order to be in position to pass more intelligently upon the expenditures which the Federal Reserve Banks propose to make in their building operations, as well as to secure uniformity in essential details, the Board deemed it expedient to employ a consulting architect and secured the services of Mr. A. B. Trowbridge, of New ^ork, in this capacity. The United States Bureau of Standards of the Department of Commerce is cooperating with the Board's consulting architect in a study of the best methods of vault construction. BRANCHES OF FEDERAL RESERVE BANKS AND THEIR OPERATIONS. At the end of the year 1918 there were in operation 16 branches of Federal Reserve Banks, 5 of which had been authorized during that year. The branch of the Federal Reserve Bank of St. Louis at Little Rock, which was authorized during the latter part of the year 1918, began business on January 6, 1919. During the year just ended six additional branches have been authorized, as follows: Houston, Tex Nashville, Tenn, Buffalo,. N.Y Helena, Mont Los Angeles, Calif Oklahoma City, Okla. Location. j Establishe^byfederal Reserve I Dallas. Atlanta. New York. Minneapolis. San Francisco. Kansas City. 39 ANNUAL REPORT OF T H E FEDERAL, RESERVE BOARD. All of these were in active operation at the end of the year 1919 except those authorized to be established at Helena, Los Angeles, and Oklahoma City. The Federal Reserve Bank of Atlanta also established an agency for the receipt and shipment of currency at Savannah, Ga. The Board called attention in its last annual report to the greater facilities afforded by the branches to member banks located in their vicinity, as well as to the impracticability of establishing branches merely to gratify civic pride. The policy which was adopted nearly two years ago of giving equal facilities as far as possible to all member banks by having the Federal Reserve Banks pay all transportation charges on shipments of currency made to and received from member banks has been continued with satisfactory results, and, except as to time involved in transit, member banks located at a distance from the Federal Reserve Bank enjoy the same facilities in the matter of currency transfers as member banks located in Federal Reserve cities. The activities of the branches, except those at New Orleans, Detroit, and in the St. Louis, Kansas City, Dallas, and San Francisco districts, where discount operations are authorized, are devoted mainly to the collection of checks and maturing notes and bills and to currency transfers to and from member banks. A condensed statement of these activities of the branch Federal Reserve Banks appears below: Operations of Federal Reserve Branch Banks during the calendar year 1919. Branch banks. Opened for business. Average number and amount of items handled daily. Amount. Received. Shipped. 18,944 24,907 32,940 24,581 6,489 5,822 8,830 8,184 6,110 5,535 9,141 5,472 12,368 15,437 7,482 8,847 6,593 15,010 8,533 6,751 $6,418,888 8,345,111 15,265,149 11,419,118 2,612,619 1,319,101 2,572,052 4,004,788 4,311,323 1,282,815 3,183,944 1,758,026 3,145,812 4,513,692 1,431,182 2,945,752 2,362,095 3,920,959 3,525,956 1,561,856 i $6,118,120 6,590,415 15,844,576 7,679,653 2,400,056 1,879,792 2 1,392,516 5,402,518 13,599,667 1,412,786 3,615,367 2,924,000 1,978,490 1,433,205 1,129,136 3 1,640,856 1,628,339 1,099,546 2,958,443 566,447 i $8,090,857 4,623,206 16,814,852 5,590,849 2,167,916 2,044,364 2 1,677,750 4,230,352 14,954,079 1,196,659 2,033,699 3,931,200 1,186,136 1,817,015 1,150,335 »2,823,946 2,021,613 864,533 2,473,197 693,175 237,978 85,900,238 81,293,928 <817,730 80,385,733 4 916,660 Number. Buffalo Cincinnati Pittsburgh Baltimore Birmingham.... Jacksonville.... Nashville New Orleans... Detroit Little Rock Louisville Memphis Denver Omaha El Paso Houston Portland Salt Lake City.. Seattle Spokane May 15,1919 Jan. 10,1918 22,1918 Mar! 1,1918 Aug. 1.1918 Aug. 3,1918 Oct. 21,1919 Sept. 10,1915 Mar. 18,1918 Jan. 6.1919 Dec. 3,1917 Sept. 3,1918 Jan. 14,1918 Sept. 4,1917 June 17,1918 Aug. 4,1919 Oct. 1,1917 Apr. 1,1918 Sept. 19,1917 July 26,1917 Total Savannah agency.. Feb. 1 Average for 7 months. Average for 2 months. 2 4,1919 Average monthly currency receipts and shipments. 8 Average for 5 months. < Average for 10 months. 40 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE CLEARING AND COLLECTION SYSTEM. Rapid progress has been made during the year in the development of the Federal Reserve clearing and collection system. The par lists of the Federal Reserve Banks include all banks in the New England States, New York, Pennsylvania, New Jersey, Delaware, Maryland, Ohio, Indiana, Illinois, Michigan, Iowa, Missouri, North Dakota, Nebraska, Kansas, Oklahoma, Wyoming, Montana, Colorado, New Mexico, Texas, Utah, Idaho, Nevada, and California, and a majority of banks in all the other States except North Carolina, South Carolina, Georgia, Florida, Alabama, and Mississippi. Opposition has developed in some localities to those provisions which require the Federal Reserve Banks to receive from their member banks, at par, checks and drafts payable on presentation and prescribe that no charge for remitting for such checks shall be made against the Federal Reserve Banks. This opposition, however, which has gradually become less intense, except in districts Nos. 6, 9, and 10, will, it is believed, disappear entirely within a reasonable time after all banks in the country are placed on the par list. Member banks are compelled by law to remit at par to Federal Reserve Banks for checks drawn upon them, and for some years it was the policy of the Federal Reserve Banks to decline to receive from member banks, for credit or for collection, checks drawn upon nonmember banks which had not agreed to remit for them at par. Persistent efforts.were made to induce nonmember banks to make remittances without charge to the Federal Reserve Banks for checks drawn upon them, but as these banks were able to avail themselves of the facilities of the system to collect their own items without expense through some correspondent bank, they were in many cases disinclined to render a like service and declined to give up this source of profit. With the approval of the Federal Reserve Board several of the Federal Reserve Banks, early in the year, undertook to collect at par on every bank in their respective districts. The Federal Reserve Bank of Boston has for more than three years been collecting at par on all banks in its district, and other Federal Reserve Banks felt that in justice to their member banks and to the public no further discrimination should be made. Recourse was had in many cases to means of collection other than banks, but as a rule such steps were not necessary for any length of time, and of the 29,561 banks in the country, 25,565 were on December 31 remitting to the Federal Reserve Banks at par, while 3,996 still declined to do so. The efforts to establish a universal par remittance system will be continued until all banks are on the par list, and it is believed that this result will be accomplished within a comparatively short time. Several banks in various sections of the country have protested ANNUAL EEPOET OF THE FEDERAL RESERVE BOARD. 41 against the means adopted by the Federal Reserve Banks with the approval of the Board of collecting checks drawn upon banks which refuse to remit at par to the Federal Reserve Banks for items drawn on themselves, and in reply to formal complaints the Board has defined its attitude as follows: The Board's action is based upon its conception of the very evident purposes of the Federal Reserve Act. Section 13 of the act begins as follows: "Any Federal Reserve Bank may receive from any of its member banks and from the United States deposits of current funds in lawful money, national-bank notes, Federal Reserve notes, or checks, and drafts, payable upon presentation, and also, for collection, maturing notes and bills." Even though the Federal Reserve Board has heretofore ruled that the permissive "may" as used in the foregoing paragraph should not be construed to mean the mandatory "shall/' nevertheless it is clear that a Federal Reserve Bank in order to do any business whatever must exercise some of the permissive powers authorized by law. It would be impossible otherwise for a Federal Reserve Bank to afford to its member banks many of the privileges which the law clearly contemplates and to which the member banks are clearly entitled. But independently of a discussion of this phase of the situation, it seems to the Board that doubts upon this question are resolved upon a consideration of the provisions of section 16: "Every Federal Reserve Bank shall receive on deposit at par from member banks or from Federal Reserve Banks checks and drafts drawn upon any of its depos. itors." In this case, the obligatory "shall" is used so that there is no option in the Federal Reserve Bank so far as checks and drafts upon its depositors are concerned. From this it may be argued that as the depositors of a Federal Reserve Bank are member banks there is no obligation upon the Federal Reserve Bank to receive on deposit at par checks on nonmember banks, but even if the language of section 13 be construed as permissive there seems to be no question that the Federal Reserve Bank has the right to receive on deposit from any of its member banks any checks or drafts upon whomsoever drawn, provided they are payable upon presentation. The whole purpose of the act demands that in justice to member banks they should exercise that right. Section 16 further provides that the Federal Reserve Board "may at its discretion exercise the functions of a clearing house for such Federal Reserve Banks * * * and may also require each such bank to exercise the functions of a clearing house for its member banks." In accordance with the purpose of this paragraph, the Federal Reserve Board, with the view ultimately of establishing a universal or national system of clearing intersectional balances as well as bank checks and drafts, has established a gold settlement fund through which daily clearings between all Federal Reserve Banks are consummated and has also required each Federal Reserve Bank to exercise the functions of a clearing house for its member banks. In order, however, to make fully effective its facilities as a clearing house in accordance with the terms of this section, there does not seem to be any doubt that the Federal Reserve Bank should not only exercise its obligatory power to receive from member banks checks and drafts drawn upon other member banks, but that it should also exercise its permissive power to receive from member banks any other checks and drafts upon whomsoever drawn, provided that they are payable upon presentation. There are no doubt many nonmember banks without sufficient capitalization to make them eligible for membership in the Federal Reserve System, but provision is made for such banks in section 13 by authorizing the Federal Reserve Banks, for purposes of exchange or of collection, to receive deposits from any nonmember bank or trust company. But for the fact that the small country banks are able to have their out of town items credited at par by some city correspondent, there is no doubt that 42 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. many more of them would avail themselves of the nonmember collection privilege than have done so. There is a proviso in section 13 which allows member and nonmember banks to make reasonable charges "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." This has been construed by the Attorney General of the United States as meaning that a Federal Reserve Bank can not legally pay any fee to a member or nonmember bank for the collection and remittance of a check. It follows, therefore, that if the Federal Reserve Banks are to give the service required of them under the provisions of section 13 they must, in cases where banks refuse to remit for their checks at par, use some other means of collection no matter how expensive. The action of the various Federal Reserve Banks in extending their par lists has met with the cordial approval of the Federal Reserve Board, which holds the view that under the terms of existing law the Federal Reserve Banks must use every effort to collect all bank checks received from member banks at par. Several of the Federal Reserve Banks are now able to collect on all points in their respective districts at par, and new additions to the other par lists are being made every day. The Board sees no objection to one bank charging another bank or a firm or individual the full amount provided in section 13 of the Federal Reserve Act (10 cents per $100) and has not undertaken to modify these charges, but the act expressly provides that no such charge shall be made against the Federal Reserve Banks. It is the Board's duty to see that the law is administered fairly and without discrimination and that it applies to all banks and sections alike. It will, therefore, take any and all steps necessary to carry out the intent of the law as construed by the highest legal authority of the administrative branch of the Government. The marked increase during the past year in the volume and amount of checks cleared through the Federal Reserve Banks shows that member banks are depending more and more upon the facilities afforded by the Federal Reserve Banks. The daily average number of items handled by the Federal Reserve Banks during the 30 days ending December 15, 1919, was 1,412,737, as compared with a daily average during the same period in 1918 of 912,752, and the daily average during the entire 12 months of the year 1919 was 1,110,791, against 612,731 during the year 1918. For the monthly period between November 16 and December 15, 1919, the daily average amount represented by the items handled by all Federal Reserve Banks was $631,650,320, as compared with $524,407,631 for the same period in 1918. The daily average value of items increased from about $190,000,000 in 1917 to $420,980,209 in 1918, and $524,960,916 in 1919, an increase of nearly 25 per cent during the year 1919 as compared with the year 1918. It should be recalled that during the year 1918 the service charge of from 1 to 1^ cents per item previously imposed by Federal Reserve Banks to cover overhead and other costs of collection was abolished and the growth of the collection business during that year was due to a gr^at extent to this fact. Further growth during the year 1919 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 43 may be attributed to the larger use of the Federal Keserve collection system by member banks and to the greater effectiveness and value of the par collection system because of its approach toward universality. The following table shows the daily average number and the amount of items collected by the 12 Federal Reserve Banks for each 30-day period from December 16, 1918, to December 15, 1919: Daily average number and amount of items handled by the 12 Federal Reserve Banks, during each month from Dec. 16, 1918, to Dec. IS, 1919. Items drawn on banks in Federal Reserve city (daily average). Month ending (1919). Number. Jan. 15 Feb. 1 5 . . . Mar. 15 Apr. 15 May 15. June 15 July 15 Aug. 15 Sept. 15 Oct. 15 Nov. 15 Dee. 15 ! | i 1 '....! j ! | 95, 622 90,944 109,083 138,817 129,378 132,688 149,902 139,678 149,460 164,761 177, 589 182,347 Amount. $221,889, 198,935, 168,567, 197,456, 176,737, 196,594, 218,737, 194,733, 208,529, 235,072, 236,521, 251,531, Items drawn on banks in district outside Federal Reserve city (daily average). [Number. Amount. 635,080 $165,386,737 599,951 156,360,759 640,346 171,714,589 686,512 167,142, 262 665,641 163,067,746 696, 457 191,330,944 737,007 194,300,102 731, 680 176,612,134 761,680 202,812,209 824,862 223,417, 562 915,794 246,055,511 975,095 254,594,746 Items drawn on Treasurer of United States (daily average). Number. 77,282 126,051 114,563 137,228 157,820 118,248 95,986 83,659 77,201 93,437 107,551 88,071 Amount. $37,753,800 63,221,002 46,746,505 48,802, 574 45,278,441 48,316,599 49, 867,067 57, 868,769 51,935, 604 45,272,641 37,355,291 36,506,264 Items doubly handled. Items handled by entire Federal Reserve system (daily average ex- Drawn on banks in Handled by both parent eluding duplications). bank and branches other districts (daily (daily average). average). Month ending (1919). Jan.15. Feb. 15. Mar. 15. Apr. 15. May 15. June 15. July 15. Aug. 15. Sept. 15 Oct. 15. Nov. 15. Dec. 15. Number. Amount. 807,984 816,946 863,992 962,557 952,839 947,393 982,895 955,017 988,341 1,083,060 1,200,914 1,245,513 $425,030,483 418,517,185 387,028,471 413,400,957 385,083,316 436,242,116 462,904, 505 429,214,521 463,276,894 503,762,815 519,932,757 542,632,239 Number. 99,828 89,972 100,963 101,329 95,541 99,349 104,997 110,817 107,279 119.387 129', 399 139,915 Amount. $64,079,660 58,431,530 55,760,559 59,610,264 57,858,264 61,906,814 66,672,048 66,552,940 66,883,891 74,965,478 78,178,485 76,999,447 Number. 13,662 12,807 15,047 16,958 15,798 18,260 19,061 20,787 21,959 23,162 27,594 27,309 Amount. $10,080,440 11,036,400 9,774,269 9,029,805 7,613,957 11, 626,331 10,502,207 9,119,2C3 10,984,785 11,417,988 12,683,739 12,018, 634 The table next following shows by Federal Reserve districts the number of banks remitting at par on January 1, 1920, and the number of nonmember banks not remitting at par, as compared with the number on January 1, 1919/together with the additions to the par list during the year 1919. 178983—20 4 44 ANXUAL REPORT OF THE FEDERAL RESERVE BOARD. Number of banks remit- Non- Number of banks remitting at par on Jan. 1, member ting at par on Jan. 1, 1920. 1919. banks Federal Reserve not remitting Bank. Nonat par Member NonMember member Jan. member Total. banks. banks. Total. on 1, 1919. banks. banks. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco... 423 723 661 814 565 426 1,334 514 867 994727 644 246 339 329 728 351 209 2,392 1,046 1,169 2,200 247 1,049 669 1,062 990 1,542 916 635 3,726 1,560 2,036 3,194 974 1,693 102 411 1.156 1,345 1,805 1,600 1,743 979 947 159 432 753 678 843 585 426 1,374 538 920 1,038 756 723 Total 8,692 10,305 18,997 10,247 ; 9,066 1 245 318 415 1,C85 485 355 3,896 2,309 1,879 3,346 1,220 942 677 1,071 1,093 1,928 1,070 781 5,270 2,847 2,799 4,384 1,976 1,665 16,495 i 25,561 Net Nonmember increase during banks not re- year in mitting number of at par nonmember on Jan. banks on 1, 1920. par list. 1 i 1 109 21 86 357 134 146 1,504 1,263 710 1,146 973 1 107 3,996 6,190 995 1,219 293 355 1,025 Decrease. GOLD SETTLEMENT FUND. There has been a continued and steady increase in the volume of business cleared through the gold settlement fund during the past year. This increase is due in part to the transfer of funds on account of the Treasury's fiscal operations, including transactions incident to the sale of certificates of indebtedness and to the flotation of the Victor}^ loan and payment on account of income and excessprofits taxes. Heavy transfers have also been occasioned by seasonal demands for money throughout the country for the movement of crops and for industrial purposes, and the transactions have been increased in volume also because of the larger use by member banks of the clearing and collection facilities of the Federal Reserve System. There has been no important change during the past year in the method of operating the gold settlement fund, which has been explained fully in previous reports. The facilities of the gold settlement fund clearing have been extended to all branches of Federal Reserve Banks which carry deposit accounts of member banks, thus simplifying the accounting between the head offices and the branch banks. The New Orleans branch of the Federal Reserve Bank of Atlanta, the Baltimore branch of the Federal Reserve Bank of Richmond, the Louisville, Memphis, and Little Rock branches of the Federal Reserve Bank of St. Louis, the Omaha and Denver branches of the Federal Reserve Bank of Kansas City, the El Paso and Houston branches of the Federal Reserve Bank of Dallas, and the Salt Lake City, Seattle, Spokane, and Portland branches of the Federal Reserve Bank of San Francisco are now settling direct. While this arrangement has added to the work of making the settlement in the office of the Federal Reserve Board, additional facilities have been provided so that the settlements are now effected more quickly for the 12 Federal Reserve Banks and 13 branches than when Digitized forthe FRASER settlements were made only between the 12 Federal Reserve Banks. ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 45 The gold settlement fund operations have been affected to a large extent during the year 1919 as during the two previous years by the operations of the Treasury. This is shown by the comparison of the volume of clearings and transfers handled through the gold settlement fund with the principal fiscal operations of the Treasury. During the first quarter of the year clearings and transfers through the fund averaged more than one billion dollars a week. The record figure of $1,345,521,000 was established during the week ending January 9. A large part of the volume of business handled through the fund during this period is accounted for by the movement of funds received by the Treasury from the sale of $4,952,400,000, of certificates issued in anticipation of the Victory loan. For the week ending March 20 combined clearings and transfers exceeded by more than $200,000,000 similar transactions for the previous week. This increase is accounted for by the movement of funds incident to the payment of the first installment of the income and excess-profits taxes to the Government on March 15, which amounted to more than $1,000,000,000. Another large increase is noted for the week of May 22, which is incident to the movement of funds in connection with the payment of the first installment on account of the subscriptions to the Victory loan. For the week ending June 19 a new high record in the volume of business was established and combined clearings and transfers amounted to more than $1,696,907,000, an increase of more than $450,000,000 over the previous week's figures. This is accounted for by the large movement of funds incident to the second installment payment of the income and excess profits taxes due on June 15. These figures were exceeded, however, during the week ending September 18, the combined clearings and transfers for the week aggregating $1,729,000,000. This amount was again exceeded the following week, when the total transfers and clearings through the fund amounted to more than $1,940,000,000. The large volume of transactions during this period is accounted for by the payment of funds in connection w^ith the third installment of income and excess profits taxes on September 15 and the unusually heavy movement of Government funds in connection with the redemption of Treasury certificates of indebtedness outstanding. During the last quarter of the year the combined clearings and transfers have averaged well above $1,500,000,000 weekly, due to continued heavy movements of funds by the Government and to large transfers for account of member banks. Combined clearings and transfers through the fund during the year 1919 aggregate $73,984,252,000, as compared with $50,251,592,000 in 1918, $27,154,704,000 in 1917, $5,533,966,000 in 1916, and $1,052,649,000 in 1915, making a grand total of $157,977,163,000 since the operation of the fund was begun on May 20, 1915. 46 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. When it is considered that these enormous transfers are made almost instantaneously by means of the leased wire system without involving the physical movement of a dollar, it will be seen that the arrangement has been of incalculable value to the Government, the banks, and the public. The total expense of operation, including the entire cost of the leased wires and salaries of accountants, was approximately $250,000. This represents the basic cost of effecting the domestic exchanges between the several Federal Reserve districts. A charge of 10 cents per $100, if generally imposed, would have involved an expense to the commerce of the country of $73,984,252. FEDERAL RESERVE BANK NOTES. On May 6, 1919, the Secretary of the Treasury announced that no further sales of silver under the act of April 23, 1918, generally known as the Pittman Act, except to the Director of the Mint, were contemplated. This act, which was reviewed in the last annual report of the Board, provides that in order to prevent contraction of currency, the Federal Reserve Board is authorized to permit, or require Federal Reserve Banks to issue Federal Reserve bank notes in any denomination, including denominations of $1 and $2, in an aggregate amount not to exceed the amount of standard silver dollars melted or broken up, upon depositing with the Treasurer of the United States, as security for the bank notes issued, United States certificates of indebtedness, or United States one-year gold notes. The total amount of standard silver dollars melted or broken up under the provisions of this act up to May 6, 1919, the date of final transaction, was $260,121,554, which, therefore, is the total amount of Federal Reserve bank notes which can be issued by the Federal Reserve Banks under the provisions of the so-called Pittman Act without melting more silver dollars. Up to December 31, 1919, $259,375,000 of Federal Reserve bank notes had been issued by the Federal Reserve Banks under the provisions of the act, principally in denominations of $1 and $2, as shown by the following table: Statement showing Federal Reserve Reserve Banks under the provisions 1919. Bank. bank notes, by denominations, issued to Federal of the ''Pittman Act" up to and including Dec. SI, $1 $2 $10 Boston New Y o r k . . . . Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas :.... San Francisco. $12,788,000 33,944,000 19,196,000 13,900,000 10,524.000 12,388,000 27,608,000 9,056,000 6,012,000 6,688,000 6,432,000 8,076,000 86,728,000 13,272,000 4,664,000 4,080,000 1,736,000 1 656,000 7,344,000 2,512,000 1,648,000 1,792,000 1.368,000 2,304,000 $1,920,000 10,620,000 6,420,000 5,319,000 Total... 166,612,000 49,104,000 40,259,000 1,620,000 3,700,000 4,500,000 820,000 4,340,000 500,000 500,000 $1,440,000 960,000 1,000,000 3,400,000 Total. $21,436,000 59,276,000 30,280,000 23,299,000 12,260,000 15,664,000 39, 612,000 17,068,000 8,480,000 12,820,000 8,300,000 10,880 000 259,375,000 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 47 Section 6 of the so-called Pittman Act provides that as and when standard silver dollars shall be coiDed 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 section 5 of the 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 United States certificates of indebtedness deposited as security for the bank notes so retired. As no bullion had been purchased by the Secretary of the Treasury on August 20, 1919, which was the date when the first certificates deposited under the provisions of this act as security for Federal Reserve bank notes matured, the Secretary of the Treasury advised the Federal Reserve Banks that the oneyear Treasury certificates of indebtedness which had been purchased to secure their bank-note circulation would be extended for one year from that date and that all subsequent issues of certificates of indebtedness held by the Federal Reserve Banks under the provisions of this act to secure their bank notes would be extended for one year from date of maturity until further notice by the Secretary of the Treasury. REGULATION AND CONTROL OF FOREIGN EXCHANGE. During the first half of the year the restrictions which had been imposed on foreign exchange operations during the war, under the authority vested in the Secretary of the Treasury and the Federal Reserve Board by the Executive order of January 26, 1918, were removed as rapidly as was consistent with the best interests of the United States. Remittances were authorized to countries to which they had formerly been prohibited, and, wherever possible, " dealers" were allowed entire freedom in consummating exchange transactions which had previously required the approval of the Division of Foreign Exchange. By the 1st of June most of the restrictions on foreign exchange transactions had been removed, and further statistical reports were not required from " dealers" after June 25. These reports disclose that from February 20, 1918, when the Executive order went into effect, to June 25, 1919, the total exchange from all sources on all countries of the world purchased by American u dealers" was $11,769,942,317, while the total amount sold during that period was $11,747,071,165. The total purchases and sales of demand and cable exchange between " dealers" in the United States for the same period were $9,980,894,404, of which $6,882,707,401, or approximately 69 per cent, were for exchange on Great Britain. In addition to these figures, the statement of the arbitrage operations also shows the important position in world finance held by Great Britain. 48 AXXUAL REPORT OF THE FEDERAL RESERVE BOARD. Exchange on Great Britain was sold in the United States by foreign holders from February 20, 1918, to June 25, 1919, in an aggregate amount of $927,664,000, and exchange on Great Britain was purchased from American "dealers" for foreign account to a total of $904,693,000. Of these amounts residents of the. United States bought from British banks sterling to the equivalent of $540,020,000, while we sold to British banks the equivalent of $232,758,000 in sterling bills. The total arbitrage transactions of American "dealers" for this period were as follows: Foreign exchange purchased from other countries by the United States $1, 606, 710, 000 Foreign exchange sold to other countries by the United States 1, 296, 454, 000 During the period under discussion the total debits and credits to dollar accounts in the United States of European allied countries were $39,949,417,757, of European countries other than our Allies $5,498,186,496, of Asia $4,310,229,078, and South America $3,230,701,836. Purchases of securities in this country for foreign account for the same period were made to the value of $777,031,000, while sales here for foreign account aggregated $701,367,000. Securities held in this country for foreign account at the close of business June 25, 1919, amounted to $1,990,808,000, while securities held abroad for American account on the same date were $112,982,000. EXCHANGE ON CENTRAL EUROPE. On April 22 the Division of Foreign Exchange prohibited "dealers" from purchasing exchange, except from the American Relief Administration, upon any of the following countries: Finland, Czechoslovakia, Jugo-Slavia, Roumania, Poland, German Austria, Serbia, Bulgaria, and Turkey. On April 30 Germany was added to this list by virtue of a license issued by the War Trade Board. This regulation was issued for the purpose of enabling the American Relief Administration to make use of such foreign currencies in the countries concerned as were received by it for food being shipped and to employ the dollar equivalent in the purchase of food in the United States for shipment to those countries, and was of great service in getting food into those territories. The arrangement continued in effect until June 30, on which date the American Relief Administration went out of existence. The President issued an order on June 26, 1919, which revoked and canceled all previous proclamations prohibiting the exportation of coin, bullion, and currency and controlling transactions in foreign exchange and the power and authority for those purposes vested in the Secretary of the Treasury and in the Federal Reserve Board, and all orders, rules, and regulations issued or prescribed in connection therewith, except that such proclamations, orders, rules and were continued in force and effect in so far as they were Digitized forregulations FRASER ANNUAL EEPORT OF THE FEDERAL RESERVE BOARD. 49 necessary to enable the Secretary of the Treasury and the Federal Reserve Board effectively to control: (1) All exportations of coin, bullion, and currency to that part of Russia now (then) under the control of the so-called Bolshevik government, (2) any and all dealings or exchange transactions in Russian rubles, (3) the transfer of credit or exchange transactions with that part of Russia now (then) under the control of the so-called Bolshevik government, (4) any and all transfers of credit or exchange transactions with territories in respect of which such transactions were then permitted only through the American Relief Administration. On August 12 the Federal Reserve Board announced the issue of a general license permitting the exportation from the United States of Russian rubles, provided that notice of exportation be given to the Customs Division of the Treasury and to the Division of Foreign Exchange of the Federal Reserve Board. As the War Trade Board section of the Department of State issued on July 14 a general enemy trade license opening Germany to trade and communication and took similar action with regard to Hungary on'September 2, all restrictions have been removed from the exportation of coin, bullion, and currency, and from transactions in foreign exchange, except as to (1) transactions with or for persons in that part of Russia now under the control of the so-called Bolshevik government, and (2) the importation of or exchange transactions in Russian rubles. Continued and insistent demand for silver in China and the Orient generally led to a gradual increase in the price of silver, which on November 25, 1919, sold as high as $1.3875 per ounce. The bullion value of the silver content of the standard silver dollar is equal to $1 when silver sells at $1.2929 per fine ounce. The bullion value of the silver content of our subsidiary coinage is equal to its face value when silver sells at $1.38. It is evident, therefore, that when silver rises appreciably above $1.29 per ounce, our standard silver dollars can be exported at a profit, and that should silver remain for any length of time above $1.38 our subsidiary silver coinage would be subject to export. Standard silver dollars must, of course, be delivered on presentation for redemption of silver certificates, which are in effect trust receipts calling for the delivery of a specified number of standard silver dollars. Apart from silver so held, however, there is a considerable number of standard silver dollars free in the Treasury. In order to protect our subsidiary coinage from export it was deemed advisable to utilize the standard silver dollars free in the Treasury in order, so far as possible, so to control the rates of exchange with silver standard countries as not to permit the export of our subsidiary silver coinage to become profitable. The Board, in cooperation with the Treasury Department, accordingly arranged with American banks having their own branches in the 50 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Orient, and included in the arrangement all American banks so situated, whereby these banks under the direction of the Division of Foreign Exchange of the Federal Reserve Board, will be enabled to utilize such standard silver dollars in meeting Oriental demands. This arrangement was announced by the Board on December 6, 1919, in a statement reading as follows: Announcement was made to-day that under arrangements made between the Treasury and the Federal Reserve Board, standard silver dollars that are free in the Treasury will until further notice be delivered against other forms of money to the Division of Foreign Exchange of the Federal Reserve Board, which will, through the Federal Reserve Bank of New York, cooperating with the branches of American banks in the Orient, employ such dollars in regulating our exchanges with silverstandard countries. This arrangement does not, of course, affect the redemption of outstanding silver certificates in standard silver dollars. EXPORTS OF COIN, BULLION, AND CURRENCY. The report of the Board for the year ended December 31, 1918, contained a complete statement of the operation of the gold export committee up to that date. On May 6, 1919, the Board announced that thereafter licenses for the export of silver bullion or silver coin of foreign mintage would be granted freely and without condition. This was followed on June 9, 1919, by the announcement that, with the approval of the President, the control previously exercised over transactions in foreign exchange and over the exportation of coin, bullion, and currency would be terminated except as to the importation or exportation of ruble notes or exchange transactions with that part of Kussia under the control of the so-called Bolshevik government, and except as to exchange transactions with territories with which such transactions were at that time permitted only through the American Relief Administration. At the same time it was announced that until formal action was taken by the President, applications for the export of gold would, like applications for the export of silver, be granted freely, irrespective of amount or destination except as above stated, and that during that interim licenses required to consummate specific transactions in foreign exchange would be granted freely with the exceptions indicated above. The President's order of June 26, 1919, removed all restrictions upon transfers of credit and exchange transactions and exports of coin, bullion, and currency except as to those parts of Eussia controlled by the so-called Bolshevik government. On August 12, the Board announced the issuance of a general license permitting the exportation from the United States of Russian rubles, provided that notice of such exportation be given to the Customs Division of the Treasury and to the Board's Division of Foreign Exchange. With these exceptions, there is now no control Digitized forover FRASER the export of coin, bullion or currency. 51 ANNUAL EEPOET OF THE FEDERAL RESERVE BOARD. The following table shows the amounts represented by licenses issued by the Board from September 7, 1917, to June 7, 1919, for exports from the United States of coin, bullion, and currency, as well as the countries to which shipments were authorized. Approximately 1,142 licenses were issued for the shipment of gold, 1,500 licenses for the shipment of silver, and 1,817 licenses for the shipment of currency other than United States gold and silver certificates. There were disapproved 775 applications of all classes. Amounts represented by licenses granted by the Federal Reserve Board from Sept. 7, 1917, to June 7,1919, covering exports from the United States of coin, bullion and currency. Gold. Silver. United States currency. Currency of the country to which exported. Other currency. Total. North America: Canada Mexico West Indies $32,639,277.87 $9,656,011.43 S3,900,946. 42$:521,439,382.48 48,033,946.96 9,924,964.99 23,969,947.58 1,394,090.66 6,467.56 177,531. o n 610,180.67 78,107,189.00 $674,059.48 $68.1,309,677.68 51,445.81 83,374,396.00 206,854.00 79,108,223.03 Total.. 80,850,756.63 20,191,157.09 105,978,083.00 22,839,940.70 932,359.29 230,792,296.71 Central America: Panama Other points Total.. South America: Argentina Bolhia Brazil Chile Colombia Equador Peru Uruguay Venezuela Other points Total Europe: Denmark France Great Britain... Holland Italy Norway Portugal Russia Spain Sweden Switzerland Other points Total.. Asia: China India Japan. Other points Total. Africa Australasia: Australia Java Philippines... Other points 98,175.00 33,250.00 238,019.10 2,150,257.38 4,189,756.45 5,370,910.00 '8,175.00 271,269.10 6,340,013.83 5,000.00 19,108.60 43.60 1,321.00 4,886.70 192.25 500,005.00 448,323.75 1,414. "" 1,552.00 5,000.00 30,810.00 17,594,346.27 785,043.60 70,208.50 15,558,789.05 620,365.10 14,434,027.95 573,405.00 250." 66 6,133,632.12 217,614.80 7,525,181.69 176,163.07 1,713,700.00 981,847.70 651,425.10 63,068,412.05 75,000.00 25.00 1,453,638.00 61,673.92 10,467,855.00 49,340,730.00 74,460.46 56,347,426.49 1,648,311.72 2,000.00 357.50 1,700,000.00 500,300.00 4,278.00 2,232,272.69 15,500.00 10,000.00 52,959.14 1,657,000.00 5,723.00 200.00 500.00 4,455,294.00 883,852.80 160.00 460,032.00 100.00 225.00 368,000.00 112,700.00 1,340.00 11,826.00 2,084,093.33 1,896,950.92 53,591.81 4,603,536.88 74,476,836.12 52,851,541.72 4,624,900.67 5,386,454.64 141,943,270.03 2,007.38 6,586.35 94,000.00! 2,021,000.00 497,066.00! 3,349,910.00 8,593.73 591,066.00 | 17,510,142.95 ! 785,000.00 1,142.50 15,553,902.35 I 13,152,520.60 400.00 4,620,058.37 11,534.72 22,750.00 ""2," 745.'66 '65,'666.'66 53,000.00 607,950.00 73,000.00 940,000.00 6,683,629.69 157,074.07 125,000.00 216,200.00 840,000.00 9,089.00 I 58,463,870.53 1,257,568.72 90,261.00 1,630. 750.00 158,282.00 62,112; 634.25 4,254,509.20 64,221, 658.79 4,450.00 1,760, 399.31 504! 578.00 27,460.00 392,073.64 2,667: 306.33 438.00 10] 438.00 102,142.50 5QO'.66 1,818. 324.64 280.00 4,456: 274.00 180,675.00 1,104; 097.91 39,410.11 482, 065.00 8,708.00 13,000.00 400,000.00 292,703.80 1,174. 743.80 197,717.10 62,150,467.90 '"1,704,003.35 3,888,272.00 338: 500,000.00 1,344,789.70 357,962.50 4,328,179.76 ' "6"6,"566."66 55,100.00 2,630.20 810.00 101,535.43 61,500.00 563,391.52 62,929,892.72 2,786,025.52 345,379,110.87 598,790.00 2,605,615.13 31,250.00 4,833,992.26 5,788,741.30 405,682,651.01 131,286.00 166,475.63 3,979,457.04 415,748,610.98 15,686.00 1,598.00 13,330.00 81.00 697.50 250.00 15,956.50 20.00 2,608,639.30 2,167.50 537,500.00 5,650.00 400.00 45,802.87 4,264.20 10,815.88 370,747.00 64,456.25 3,521,550.50 3,727.00 728,985.00 150.00 1,025,022.00 1,759,104.00 2,609,879.30 Total Grand total... 152,326,976.37 502,756,003.44 735,035.00 50,217.07 1,406,584.88 5,345,110.75 1,220.00 543,394.50 166,780,636.72 28,762,254.27 12,627,800.05 863,253,670.85 52 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Gold imports for the year just ended amounted to 76.5 millions compared with 62 millions for the calendar year 1918, while gold exports aggregated 368.2 millions, compared with 40.8 millions exported in 1918. Net gold exports for 1919 amounted to 291.7 millions, as against net imports of 21.1 millions the year before. The figures for 1919 are, however, exclusive of 173.4 millions of gold received from the Reichsbank for foodstuffs sold to the German Government. This gold is held at present in London with the exception of %42.1 millions which by arrangement have been delivered in London by the Federal Reserve Banks in place of gold that would otherwise have been withdrawn in the United States for export. Counting the 131.3 millions held on December 31 by the Bank of England for the Federal Reserve Banks as an offset against the net exports above shown, the net loss of gold through transfer abroad is reduced to 160.4 millions. Of the gold imports over three-fourths is credited to Canada, Hongkong, the United Kingdom, and Mexico, while of the gold exports 94.1 millions were consigned to Japan, and over 125 millions to the other Far Eastern countries, i. e., China, Hongkong, British India, Straits Settlements, and Dutch East Indies; 56.6 millions to Argentina, 33 millions to other South American countries, 29.8 millions to Spain, and 10.4 millions to Mexico. Silver imports during 1919 amounted to 89.4 millions, compared with 71.4 millions in 1918, while silver exports during 1919 were about 239 millions compared with 252.8 millions the year before. By far the larger portion of the silver exported in 1919 was consigned to the Far East, British India being credited with 109.2 millions, China with 77.6 millions, and Hongkong with 10.2 millions. The three countries named account for over 80 per cent of the total value of silver shipped to foreign destinations during the past calendar year. Exports of silver to India, which constituted by far the larger portion of the total foreign silver shipments during 1918 and 1919 to September 10, have practically ceased since that date, and have been superseded by large gold shipments to that country during the latter part of the year. The recommendations of the committee now considering Indian currency problems are awaited with interest, as any change in Indian currency arrangements may have an important influence on the movement of money metals to that country. The countries from which gold and silver were received by the United States and to which exports of these metals were made as well as the amounts in each instance, are shown in the following table: ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Country. Belgium Denmark.. . Finland. France Gibraltar Greece Italy Netherlands Norwav. Portugal . Spa^n Sweden . Switzerland United Kingdom—England Canada . . Newfoundland... Costa Rica Guatemala Honduras British Honduras Nicaragua. . Panama. . . . Salvador Mexico. Jamaica Trinidad Other British West Indie? Cuba. . Danish West Indies (Virgin Islands of U. S.)... Dominican Republic Dutch West Indies. . Argentina Bolivia... Brazil Chile Colombia E cuador. . British Guiana. Dutch Guiana.... Peru Uruguay. Venezuela.. China Chosen (Korea). . Hongkong Dutch East Indies .. British India Straits Settlements Japan Russia (Asia) New Zealand Philippine Islands British Fast Africa . British South Africa British West Africa Portuguese Africa Total.... 1 Gold imports. 5831,002 Silver imports. Gold | : : exports. $31,900 2,002,666 53 Silver exports. $1,797 ! i 75 524 2 400 4 152,533 $684,713 17 438 6 588 197 95,000 • 454, 925 15.000 4.055, 739 44', 487,390 61 616 583 29 267 258,255 1,424,217 3,401 1,140,911 4 464 140 1,947 IS, 838 29 778 000 661 1 67,570 2,091.066 5,706,428 ! ! 2i.300 12.000 16,500 1.390,000 3,124,020 10 357,619 7.940 9 593 525 61,746 7,171,469 11 163,665 8 2,621,645 269,276 769,921 89, 273 1,555,969 63 303,437 4.639 37 1,549 82,837 1,105 25,000 5,200 102.721 2 582 26 200 233 837 556 572 379,911 139,159 20,144 814, 583 381 981 1,714 10,017, 550 3 851 075 1,354, 578 581,924 8,150 56,560,000 2 500 000 525 000 100 000 5, 268,620 5,005 19,795 3,383,369 9,205,000 12 052 220 39,109, 769 40,085.969 7, 365, 111 34 300 666 4,209,667 94 114 189 23,000 102, 500 240 2,094,084 1 219 430 1,950 228 194,526 172 203 15,635,386 7,854,378 5 900 205,600 363 250 1, 500 1 926 433 10,328 2 300 161 150 000 300 64,433 132 785 2 155 1 927324 '271,274 13.670 121 265 8,862, 537 2 52i 3,328 20,000 1,773,584 3, 867 2 498* 2,656 3,193 5 063 850 000 77 583,367 10, 245,351 109,180,718 3 946 453 52, 759 1.566 12,327 76,822 17,777 619,296 76, 534,046 68,698 368,185,248 89,410,018 239,021,051 FOREIGN BRANCHES OF AMERICAN BANKS. The operations of American banking corporations principally engaged in international or foreign banking have been extended during the past year and in addition to those to which reference was made in the Board's last annual report, the corporations named below have entered into the necessary agreements with the Federal Reserve Board to permit the purchase of their stock by national banks under the provisions of section 25 of the Federal Reserve Act. The French American Banking corporation is incorporated under the laws of the State of New York. One-half of the stock of this corporation is owned by the Comptoir National D'Escompte of 54 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Paris and the other half is divided equally between the First National Bank of Boston and the National Bank of Commerce in New York. The activities of this corporation are devoted more particularly to the development of trade relations between the United States and France. The Comptoir National D'Escompte has about 200 branches in France and also has branches in Great Britain, Spain and Belgium, and in other countries, besides affiliations with some of the French colonial banks. The Park-Union Foreign Banking Corporation, which is owned jointly by the National Park Bank of New York and the Union Bank of Canada, is especially active in the development of trade between the United States and the Dominion of Canada and of their commerce with the Orient. It has established branches in Yokohama, Tokyo, Shanghai, Paris, San Francisco, and Seattle. The Foreign Credit Corporation, the character of whose business is indicated by its title, is controlled by the Chase National Bank of New York. The Shawmut Corporation was recently organized by the National Shawmut Bank of Boston. No foreign branches have been opened, but an office is maintained in New York City. In the following table are given the names, capital and surplus, and resources of the domestic corporations principally engaged in foreign banking which have filed the necessary agreements with the Board and which number national banks among their stockholders. As of Dec. 31, 1919. Name of corporation. American Foreign Banking Corporation, New York City. Mercantile Bank of the Amer• icas, New York City. Asia Banking Corporation, New York City. International Banking Corporation, New York City. Park-Union Foreign Banking Corporation, New York City. French American Banking Corporation, New York City. Foreign Credit Corporation, New York City. First National Corporation, Boston, Mass. Shawmut Corporation, Boston, Mass. Organized under laws of State of— Resources (head office). New York $4,575,000 $46,570,000 Connecticut 10,000.000 69,000,000 New York 5,100,000 22,100,000 8 9 17 s 1 Connecticut 8,500,000 94,428,000 27 1 New York 2,250,000 12,698,000 4 2 do 2,500,000 22,309,000 do 6,000,000 11,410,000 Massachusetts... i With 26 offices. Subsidiary or Foreign Domestic affiliated branches. branches. institutions. Capital and surplus. do 1,800,000 * 14,736,000 1 23,444,000 1 2,280,000 1 Includes figures for domestic branch. ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 55 It will be noted that these corporations are all organized under State laws. The Federal Reserve Board in two previous reports to Congress recommended that section 25 of the Federal Reserve Act be amended so as to provide for the Federal incorporation of associations solely engaged in international or foreign banking, which would operate under general supervision of the Federal Reserve Board and stock in which might be owned by national banks. This recommendation has been acted upon and provision is made for the Federal incorporation of corporations organized for the purpose of engaging in international or foreign banking and other international or foreign financial operations, as set forth in the act approved December 24, 1919, generally known as the Edge Act. This act contemplates the organization both of corporations to engage in foreign commercial business and of corporations to undertake long-time financing, and in connection therewith to issue securities to be sold to investors. It is expected that some existing corporations and others to be organized will avail themselves of the privileges of this act. The act approved September 17, 1919, amended section 25 of the Federal Reserve Act by permitting the investment by any national bank until January 1, 1921, without regard to the amount of its capital stock and surplus, of not more than 5 per cent of its paid-in capital and surplus in the capital stock of corporations organized under the laws of the United States or any State principally engaged in such phases of international or foreign financial operations as may be necessary to facilitate the export of goods, wares and merchandise from the United States or any of its dependencies or insular possessions to any foreign country. Provision is made also in the so-called Edge Act for the Federal incorporation of financial institutions of this character. The Federal Reserve Board is charged generally with the same duties and responsibilities as to the organization, supervision and liquidation of corporations organized under the new law as those which devolve upon the Comptroller of the Currency in the case of national banks, and it is now engaged in the preparation of rules and regulations governing their operation, as prescribed by the act* The new law authorizes all national banks to invest to the limited extent set forth above in the stock of corporations organized to facilitate export transactions and, through the instrumentality of the corporations, to cooperate with exporters, producers, and manufacturers in extending their connections abroad. Corporations contemplated by the so-called Edge Act will be permitted under the supervision of the Federal Reserve Board to invest in foreign securities of various kinds and to offer their own obligations specifically secured by their foreign collateral to American investors. They will therefore be the means of utilizing private capital in the financing of exports on long 56 AJSTSTUAL REPORT OF THE FEDERAL RESERVE BOARD. credits, not by the commercial banks but through the investment market. More extended reference to the Edge Act is made below under the caption "Law Division." The only national banks operating branches abroad are the National City Bank of New York and the First National Bank of Boston. MEETINGS OF THE FEDERAL ADVISORY COUNCIL. The Federal Advisory Council has held during the year four meetings in Washington as required by section 13 of the Federal Reserve Act, and in addition there was a conference between the executive committee of the Council and the Federal Reserve Board on June 20,1919. The report of the proceedings of the Council and its recommendations will be found in the appendix. The following statement was issued by the Board on June 20, 1919: The Federal Reserve Board had to-day a conference with the executive committee of the Federal Advisory Council (Mr. James B. Forgan, of Chicago, Mr. L. L. Rue, of Philadelphia. Mr. Daniel G. Wing, of Boston, and Mr. W. S. Rowe, of Cincinnati) to consider problems relating to the financing of the f 3reign trade of the United States. There wa3 discussion as to what unusual features attached to this trade and the bearing thereof upon the American banking situation. The Board and the committee of the Council were in entire accord that the matter of providing long-term advances for Europe presented an investment rather than a banking problem and that the necessary funds must therefore come from the investment market. It was. however, the opinion of the conference that as a step toward supporting plans for the financing of our foreign trade it would be well to add a new paragraph to section 25 of the Federal Reserve Act so as to permit national banks until January 1, 1921, without regard to the amount of their capital and surplus, to invest not exceeding in the aggregate 5 per cent of their capital and surplus in the stock of one or more corporations principally engaged in such phases of international or foreign financial operations as may be necessary to facilitate the export of goods from the United States. The Board voted to recommend this legislation to Congress. LAW DIVISION. The general character and scope of the functions of the Law Division were set forth in the Board's last annual report. Although it is unnecessary to restate these activities in detail certain features of the current work of the Law Division should be mentioned. State laws.—Under the terms of the Federal Reserve Act, State banks and trust companies which become members of the Federal Reserve System retain their full charter and statutory rights and, subject to the provisions of the Federal Reserve Act and the regulations of the Board, are permitted to continue the exercise of all corporate powers granted to them by the States in which they were organized. Because of the lack of uniformity in the laws of the 48 States the Law Division is frequently called upon to analyze those laws in so far as they affect the operations of banks and trust com- ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 57 panies and to render opinions defining their scope and effect in various cases presented to the Board for consideration. The Law Division has had the very helpful cooperation of the counsel for the several Federal Reserve Banks in the preparation of those analyses of the State laws which have from time to time been published in the FEDERAL RESERVE BULLETIN. During the past year the general enabling act prepared by the Law Division and recommended by the American Bankers' Association for enactment by State legislatures has been adopted in slightly different forms by the legislatures of seven States. The purpose of this act is to aid in effecting the standardization of State banking laws and a coordination of Federal and State banking powers. A number of State legislatures other than the seven above referred to have enacted laws which include the substance of some of the recommendations embodied in the enabling act. The Law Division has also endeavored to keep up to date its file of State laws affecting banking and other related subjects. These laws and opinions of State officials or State courts construing them have from time to time been published in the BULLETIN. Membership of State banks and trust companies.—During the past year the Board has approved 280 applications of State banks and trust companies for membership in the Federal Reserve System. Each of these applications is first submitted to the Law Division for its consideration and report. This involves an examination of the application itself and the various exhibits accompanying it in order to determine whether the bank is technically eligible for membership and whether under the terms of the State law it possesses any unusual dowers which should be restricted by the Board in its conditions of membership. Trust 'powers of national banks.—Under the terms of section 11 (Jc) of the Federal Reserve Act the Board is authorized to permit national banks to exercise trust powers when not in contravention of State or local law. During the past year 509 national banks have been granted trust permits under the terms of this section (372 of these were original applications and the remaining 137 were supplementary).. The application of each of these banks has been examined by the Law Division. As a result of the amendment of September 26, 1918, making certain State laws applicable to the exercise of trust powers by national banks, many intricate questions of law and policy have arisen in connection with the approval of applications submitted to the Board under the terms of section 11 (k). These questions are referred to the Law Division for its report before final action is taken by the Board. A new set of regulations governing the exercise of trust powers by national banks necessitated by the amendment to section 11 (Jc) above referred to, has been prepared and issued by the Board. Clayton Antitrust Act.—Since the issue of its last report, the Board received and considered 281 applications presented to it under the Digitized forhas FRASER 58 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. so-called Kern amendment to section 8 of the Clayton Antitrust Act, relating to interlocking bank directorates. These applications have in each case been investigated and reported upon by the Law Division. In addition to those applications which are received by the Board the Law Division has also investigated many cases of alleged violations of the law to which its attention has been called by reports of national bank examiners. In such cases the directors involved have been requested either to resign from the banks coming within the inhibitions of the Clayton Act or to file a formal application with the Board for its consent to continue to serve on the banks concerned under the provisions of the Kern amendment. Opinions and rulings.—The Law Division is required constantly to pass upon questions and to prepare memoranda involving the interpretation of the Federal Reserve Act, the National Bank Act, the Negotiable Instruments Law, and the laws of the several States relating to the operations of national banks and State banks or trust companies which have become members of the Federal Reserve System and also to draft rulings denning the proper application of the law or the regulations of the Board to specific cases arising in the administration of the Federal Reserve Banks or in the operations of their member banks. Such of these opinions or rulings as are of general interest to member banks are published each month in the BULLETIN, The Law Division has recently undertaken the preparation of a codification of all the opinions and rulings of the Board which are now in force. It is believed that this codification, when complete, will be of great assistance in the administration of the reserve banks and their members. AMENDMENTS TO THE FEDERAL RESERVE ACT. The Federal Reserve Act has been amended three times during the past year. Each of these amendments, which will be discussed in order, was recommended by the Federal Reserve Board, and the Law Division, under the directions of the Board, assisted in the preparation of each of the bills presented. By an act approved. March 3, 1919, sections 7, 10, and 11 of the Federal Reserve Act and section 5172 of the Revised Statutes were amended as follows: Section 7 was amended so as to provide that the net earnings of the Federal Reserve Banks shall be paid into a surplus fund until that fund amounts to 100 per cent of the subscribed capital and thereafter 10 per cent of the net earnings shall be paid into the surplus fund and the balance shall be paid to the United States as a franchise tax. Previously the maximum surplus provided for was 40 per cent of the paid-in capital. That part of section 10 which made members of the Board ineligible to hold office, position, or employment in a member bank during the time they are in office and for two years thereafter, was amended so as to provide in substance that no ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 59 appointive member shall be thus ineligible after completing his full term of office. Section 11 was amended by the substitution of a new subsection (m). This amendment authorizes the Federal Reserve Board upon the affirmative vote of not less than five of its members, to permit Federal Reserve Banks to discount for any member bank the paper bearing the signature or indorsement of any' one borrower in excess of the amount theretofore permitted by sections 9 and 13 of the Federal Reserve Act, but in no case to exceed 20 per cent of the member bank's capital and surplus. It is provided, however, that all of the paper discounted for any member bank in excess of the amount theretofore permitted by law shall be secured by not less than a like face amount of bonds or notes of the United States issued since April 24, 1917, or by certificates of indebtedness of the United States. This amendment, which is designed to broaden the discount powers of the Federal Reserve Banks to correspond to the lending power of the national banks as enlarged by the act of September 24, 1918, lapses after December 31, 1920. Section 5172 of the Revised Statutes also was amended by the act approved March 3, 1919, so as to authorize the issue of national-bank notes in denominations of $500 and $1,000 and to permit these notes to be attested by the written or engraved signatures of the president or vice president and cashier of the national bank which issues them. In view of the fact that Federal Reserve Banks are permitted under the terms of section 18 of the Federal Reserve Act to issue Federal Reserve bank notes under the same terms and conditions that are applicable to the issue of national bank notes, this amendment relates to Federal Reserve Banks as well as to national banks. By permitting the signatures of the officers of the issuing bank to be engraved on the notes before they are delivered much inconvenience and expense incident to the issue of the notes will be avoided. By an act approved September 17, 1919, section 25 of the Federal Reserve Act was amended so as to permit any national banking association, until January 1, 1921, without regard to the amount of its capital and surplus, to apply to the Federal Reserve Board for its permission to invest an amount not exceeding in the aggregate 5 per cent of its capital and surplus in the stock of one or more corporations chartered or incorporated under the laws of the United States or of any State thereof and principally engaged in such phases of international or foreign financial operations as may be necessary to facilitate the export of goods, wares, or merchandise. Before this amendment any national banking association possessing a capital and surplus of $1,000,000 was permitted to invest in the stock of corporations principally engaged in international or foreign banking or banking in a dependency or insular possession of the United States. 178983—20 5 60 AXXUAL REPORT OF THE FEDERAL RESERVE BOARD. There was some doubt, however, whether the law would authorize a national bank to invest in a corporation engaged in financial operations other than those strictly defined as commercial banking operations. Under the terms of this amendment a national bank, regardless of the amount of its capital and surplus, may invest in the stock of a corporation principally engaged in a foreign investment business, whether organized under State or Federal law. This 5 per cent limit was changed by the enactment of section 25 (a) r discussed below, so far as corporations organized under Federal law are concerned. By an act approved December 24, 1919, commonly known as the Edge Act, section'25 of the Federal Reserve Act was amended b}^ the addition of a subsection (a). This amendment provides for the Federal incorporation of institutions for the purpose of engaging in international or foreign banking or in other international or foreign financial operations. By the enactment of this amendment Congress has provided for the Federal incorporation of that character of institutions in which it had previously authorized national banks to invest. Without the enactment of this Federal incorporation law, however, national banks could organize their foreign banking corporations only under State laws, although it was apparently contemplated in section 25 as amended on September 7, 1916, that they should be permitted to invest in the stock of corporations organized under either Federal or State law. Thus by the amendment approved December 24, 1919, Congress has completed the machinery designed in its earlier acts, and national banks may now under the terms of section 25 (a) of the Federal Reserve Act, regardless of the amount of their capital and surplus, invest in the stock of a corporation organized under Federal law, either for the purpose of engaging in international or foreign banking or for the purpose of engaging in other international or foreign financial operations. It is provided under section 25 (a) that no national bank may invest in the aggregate more than 10 per cent of its capital and surplus in the stock of corporations doing a foreign business. It should be noted, however, that although the amendment to section 25, approved September 17, 1919, heretofore discussed, limits the aggregate amount of the investments of any one national bank in the stock of corporations engaging in foreign financial operations (as distinct from foreign banking operations) to 5 per cent of its capital and surplus, nevertheless under the terms of section 25 (a) a national bank may invest as much as 10 per cent of its capital and surplus in any corporation organized under that section, even though engaged in the foreign investment business, provided that the aggregate of all investments made by that national bank under the terms of section 25 and section 25 (a) do not exceed 10 per cent of its capital and surplus. In effect, this permits ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 61 a national bank to make a larger investment in a corporation organized under the terms of section 25 (a) for the purpose of engaging in foreign financial operations than in a similar corporation organized under State law. It is contemplated under the terms of the law that any corporation in which a national bank makes an investment and any corporation organized under the provisions of section 25(a), whether or not a national bank is an investor in its stock, shall operate under rules and regulations to be prescribed by the Federal Reserve Board. A draft of these regulations is now in preparation. Other amendments.-—There have been certain other acts of Congress enacted during the past year, which, though not amending the Federal Reserve Act, are of general interest to banks. One of these is an act approved December 24, 1919, which was recommended by the Federal Reserve Board and which provides that gold certificates of the United States, payable to bearer on demand, shall be a legal tender in payment of all debts and dues, public and private. The purpose of this legislation was to give to gold certificates the same legal-tender qualities as attach to gold which they represent and for which in substance they are a warehouse receipt issued by the Government and payable to bearer on demand. Another act of interest to member banks is the act approved October 22, 1919, amending section 5200 of the Revised Statutes so as to permit a national bank to lend to any one borrower in excess of 10 per cent of its capital and surplus, but not to exceed 25 per cent, provided that the loans over and above 10 per cent are represented by notes secured by shipping documents, warehouse receipts, or other such documents conveying or securing title covering readily marketable, nonperishable staples, including live stock; and provided further, that the actual market value of the property securing the obligation is not at any time less than 115 per cent of the face amount of the loan; and provided further, that the property is fully covered by insurance. It is specified in the act, however, that this privilege of lending in excess of 10 per cent of the bank's capital and surplus upon notes secured in the manner described, shall not apply to any' one borrower for more than six months in any consecutive 12 months. The same act amended section 5202 of the Revised Statutes by excepting from the limitations upon the amount for which any national bank may be liable at any one time those "liabilities created by the indorsement of accepted bills of exchange payable abroad, actually owned by the indorsing bank and discounted at home or abroad." This amendment does not increase the lending power of the Federal Reserve Banks. 62 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. FIDUCIARY POWERS. Applications for permission to exercise fiduciary powers under the Federal Reserve Act as amended September 26, 1918, continue to be received and passed upon by the Board. It is the practice of the Board in each instance, before granting permission for the exercise of fiduciary powers, to satisfy itself that the bank making application is in good condition and standing and its management safe and capable. During the year 372 original and 137 supplemental applications have been approved. The total number of banks now holding permits is 1,074, a list of which, with the powers granted, appears in the appendix. BOARD'S ORGANIZATION, STAFF, AND EXPENDITURES. The general readjustment in practically all branches of commercial and governmental activities during the past year has been reflected n an unusual number of changes in the organization and staff of the Board. Early in the year Mr. Strauss, vice governor of the Board, spent about two months in France in an advisory capacity for the Treasury Department in connection with financial questions coming up for discussion at the peace conference. In February Mr. L. C. Adelson, assistant secretary of the Board, resigned to become deputy governor of the Federal Reserve Bank of Atlanta. On March 1 Mr. Geo. L. Harrison, formerly assistant counsel, was appointed general counsel of the Board to succeed Mr. M. C. Elliott, who since the organization of the Board had served as its principal counsel and who resigned to resume the general practice of law, although continuing temporarily as consulting counsel of the Board. During the summer the work of the Division of Foreign Exchange, which had its headquarters in New York, was practically completed, Mr. F. I. Kent, director, resigned, and the employees of the division were released. Mr. J. E. Crane became acting director in charge of the remaining activities of that division. Mr. J. A. Broderick, who had been chief examiner and chief of the division of audit and examination since the organization of the Board in 1914, and also secretary of the Board since September, 1918, tendered his resignation to become effective September 1, 1919. At this time a reassignment of duties was decided upon by the Board and the following appointments were made: Mr. W. T. Chapman, secretary; Mr. R. G. Emerson, assistant secretary; Mr. W. W. Hoxton, executive secretary; and Mr. W. W. Paddock, chief of the Division of Operations and Examination. Mr. Henry A. Moehlenpah was appointed a member of the Board by the President, and took office on November 10, to fill the unexpired ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 63 term of Mr. F. A. Delano, whose resignation to enter military service abroad was noted in the last annual report. The total cost of conducting the w^ork of the Board during the year 1919, including salaries of members, expenses involved in printing and circulating the BULLETIN, and the cost of operating the Division of Foreign Exchange was $558,560.61. During the year two assessments were levied against the Federal Reserve Banks aggregating $594,668.63, or approximately 412 thousandths of 1 per cent of their average paid-in capital and surplus for the year. Further details relating to the operations of the Federal Reserve Board, and the annual reports of the Federal Reserve Agents, appear as exhibits in the appendix. PERMANENT QUARTERS FOR THE BOARD AND ITS STAFF, Ever since its organization the Federal Reserve Board, although it is not a Treasury bureau but an independent establishment, has had its headquarters in the Treasury Building, the Secretary of the Treasury being authorized by a clause in section 10 of the Federal Reserve Act "to assign offices in the Department of the Treasury for the use of the Federal Reserve Board." There is nothing in the act, however, that makes such assignment obligatory upon the Secretary of the Treasury or that requires the Board to be located in the Treasury Building. Members of the Board have been provided with rooms for their own use, and during the first two years of operation quarters in the Treasury Building were allotted to the Board for the use of its entire staff. The development of the Federal Reserve System and the continuous increase in the volume of the Board's wrork have made new divisions necessary. The number of the Board's officers and employees has increased from 66 on January 1, 1916, to 324 on December 31, 1919. Owing to the great expansion of its own business the Treasury Department has been obliged to remove many of its bureaus from the Treasury Building. While the Treasury authorities have shown a most accommodating spirit, it has been impossible for them to allot to the Board anything like the space required for the proper organization and efficient conduct of its work. Consequently arrangements had to be made to take care of some of the Board's divisions outside of the Treasury Building, so that there are now located in that building only the offices of the Board members, their secretaries and stenographers, a small- room for meetings of the Board, which is entirely inadequate and unsuitable for the frequent hearings and conferences which must be held, the office of the Secretar}^ of the Board, the office of the General Counsel, and the Gold Settlement Division, which is located on the floor above the other rooms used by the Board. The important Division of Reports and Digitized forStatistics FRASER is located in the Southern Building, two squares from 64 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. the Treasury, in rooms held without lease for an indeterminate period. The Division of Operations and Examination is located in the National Metropolitan Bank Building, as is also the Board's assembly room where are held its conferences with the Federal Advisory Council, the Governors of the Federal Reserve Banks, and with the Federal Reserve Agents, and also its public hearings. The Division of Analysis and Research is in New York City. The physical separation of the Board's working force in this manner militates against good organization and efficient operation. The inconvenience occasioned has been accepted cheerfully as unavoidable because of conge?ted conditions. The time has come, however, when provision should be made for the housing of the Board and its employees under one roof. In making arrangements consideration should be given to the relations of one division to another in order that the business may be conducted with the maximum smoothness, promptness, and efficiency. Each division should have sufficient space to allow for continued growth and for the installation of necessary modern office equipment, including an adequate filing system and essential vault facilities. Quarters suitable for the Board's purposes can not be secured by lease, and while amounts required for the payment of rentals can be included in the assessments which the Board is authorized to levy semiannually upon the Federal Reserve Banks, it appears that specific authority is necessary to enable the Board to levy an assessment upon the banks for the funds required for the construction of a building suitable for its use. The Board recommends, therefore, that Congress authorize the Board to levy an assessment upon the Federal Reserve Banks or the funds necessary to provide adequate and permanent quarters. The acquisition of a site and the preparation of plans will require a considerable time. The Board would not, however, expect to begin construction work until conditions for building are more favorable. BRANCHES OF NATIONAL BANKS. The Board has on several occasions recommended to Congress that the Federal Reserve Act be amended so as to permit national banks under certain conditions to establish branches within the corporate limits of /the cities in which they are located. Under the present law national banks can not afford the same facilities to the public as are given by State banks having branches, except in cases where State banks and trust companies operating branches have merged with national banks, when existing branches may be continued by the national banks. The Senate has passed a bill authorizing national banks located in cities of not less than 500,000 inhabitants and having a capital and surplus of $1,000,000 or more to establish branches not exceeding 10 in number within the corporate limits of the cities in Digitized forwhich FRASERthey are located, provided tha law« of the State extend a ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 65 similar privilege to banking institutions operating under State charters. While the Board, would prefer to have this privilege extended to national banks in cities of not less than 100,000 inhabitants, or, failing that, have the population limit raised to 200,000. it wishes to point out that the limit fixed in the Senate bill does not affect the principle involved, and it therefore respectfully recommends once more that national banks be permitted to establish branches in the cities in which they are located under such limitations as in the wisdom of Congress may be deemed desirable. FEDERAL RESERVE NOTES AND CREDIT EXPANSION. On December 27, 1918, Federal Eeserve notes in actual circulation amounted to $2,685,244,000. As the result of the return of notes to the banks after the seasonal demands for currency had slackened, the volume in circulation had been reduced by February 7, 1919, to $2,454,165,000. Notwithstanding the expansion of credit incident to the notation of the Victory loan in May, there was no appreciable increase in the volume of Federal Reserve notes until the crop movement became general in August. The increase in note circulation between February 7 and August 1 was only $52,655,000. The peak of Federal Reserve note circulation was reached on December 26, 1919, on wThich date the amount in actual circulation was $3,057,646,000, the increase for the year, as compared with the high point attained by Federal Reserve note circulation in the year 1918, having been $372,402,000. Indeed the increase in Federal Reserve note circulation must be regarded as moderate and as an incident of the general credit expansion and as having clearly been occasioned by crop moving and other seasonal needs—among which the requirements of the extraordinary holiday trade of the year just closed held an important place. Moreover this expansion of Federal Reserve note circulation was accompanied by a reduction of $155,542,000 in other money in circulation outside the Treasury and the Federal Reserve Banks, of which about 140 millions represents the amount of gold withdrawn from use, presumably for shipment to foreign countries. A general idea of the degree of expansion in banking operations during the last four months of the year 1919 as compared with the same period in the year 1918 may be gained from a comparison of total debits against individual accounts (all deposit accounts except those of other banks) reported by banks in about 140 leading cities for corresponding weeks in the two years. The figures for the New York banks are presented separately and are included also with those for the other centers. The separate figures for New York reflect to a considerable extent changes in the volume of stock exchange transactions; thus, for example, the appreciable increases the New York figures early in November, 1919, were caused by Digitized forinFRASER 66 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. the activity of the stock market and the large volume of share transactions. Tax payments are effected chiefly in the large centers, and consequently the increase in the total debits reported about the middle of September, 1919, as compared with the corresponding period in 1918, as well as with the weeks immediately preceding, is much more pronounced in New York City and in other large financial centers than in smaller financial communities. It will be seen from the table which follows this paragraph that for the period including August 21 to December 31, 1919, totals reported by the New York banks show an increase over the figures for the same period in 1918 about twice as great as the increase in corresponding totals for the other cities. The number of banking centers which have reported to the Board in both years varies from week to week, and in order to test the validity of conclusions based upon the changes indicated in Table A an exhibit has been added giving total debits for 36 of the larger centers, including New York, for which comparative data are available for the entire period in both years. It will be seen that the changes for the corresponding weeks in the two years and in the totals for the period under review do not differ essentially from those indicated in the last column of Table A, and that if the figures for New York are eliminated from those shown in Table B, a comparison of the 1918 and 1919 totals for the 36 cities with the average of about 140 cities in Table A leads to practically the same conclusion. TABLE A.—Debits to individual account as reported by clearing-house banks in leading' cities for each week beginning with the week ended Aug. 27, 1919, and JOT each corresponding week in 1918. [In millions of dollars.] New York City. Week ending— Aug. 27-281 Sept. 3-4 Sept 10-11 Sept. 17-18. Sept. 24-25 Oct. 1-2.. Oct. 8-9 Oct. 15-16 Oct. 22-23. Oct. 29-30 Nov. 5-6 Nov. 12-13. Nov. 19-20 Nov. 26-27 Dec. 3-4 Dec. 10-11 Dec. 17-18. Dec. 24 Dec. 31 Total All other reporting centers. Per cent Number increase centers 1919 in1919 over cluded. 1918. 1919 1918 . , 4,253 3,434 4,214 5,394 4,993 5,366 5,414 4,680 5,712 5,713 5,438 6,314 6,028 5,365 5,047 5,069 5,784 5,591 5,389 3,085 2,998 3,513 3,015 3,077 3,831 3,407 3,454 4,222 4,820 3,459 3,779 4,053 4,160 3,608 3,700 3,816 3,501 3,563 37.9 14.5 20.0 78.9 62.3 40.1 58.9 35.5 35.3 18.5 57.2 67.1 48.7 29.0 39.9 37.0 51.6 59.7 51.2 99,198 69,061 43.6 Per cent Numinber 1918 crease centers 1919 1919 inover cluded. 1918. 1918 2,658 2,529 2,826 3,298 3,219 3,373 3,306 3,409 3,758 3,774 3,379 3,618 4,034 4,035 3,496 3,690 3,831 3,445 3,341 19.3 17.9 27.2 31.6 17.3 13.6 25.8 19.3 21.4 5,743 5,527 6,339 6,313 6,296 7,204 6,713 6,863 7,980 8,594 6,838 7,397 8,087 8,195 7,104 7,390 7,647 6,946 6,904 29.2 16.1 23.2 54.2 39.3 27.7 42.6 27.4 28.8 14.6 44.7 45.1 36.6 22.3 34.0 28.0 43.5 50.1 41.8 80,450 65,019 23.7 179,648 134,080 34.0 3,170 2,981 3,594 4,341 3,775 3,833 141 4,159 143 4,066 142 4,563 140 4,133 142 4,453 141 4,416 143 5,021 143 4,657 145 4,473 146 4,394 146 5,187 146 4,836 147 4,398 110 118 121 132 141 140 Totals for all reporting centers. 9.5 31.8 22.1 24.5 15.4 27.9 19.1 35.4 40.4 31.6 Ill 119 122 133 142 141 142 144 143 141 143 142 144 144 146 147 147 147 148 7,423 6,415 7,808 9,735 8,768 9,199 9,573 8,746 10,275 9,846 9,891 10,730 11,049 10,022 9,520 9,403 10,971 10,427 9,787 1 The second date represents the end of the corresponding week in 1918. Per cent increase 1919 over 1918. ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 67 These figures, however, throw very little light upon the relative importance of the several factors responsible for the larger volume of bank transactions during the past year. It will be difficult to determine what proportions of the increased volume of bank transactions may be ascribed to the higher price level, to the larger turnover of merchandise bought and sold, and what proportion, if any, is due to greater physical volume of goods in trade. It is evident that the increase in the price level—wholesale prices for 1919 averaging about 8 per cent higher than in 1918—is not great enough to account for the increase of over 20 per cent in the volume of bank transactions outside of New York City, and it is reasonable to assume that to the other factor mentioned, viz, the larger turn-over owing to the greater volume of speculative dealings, must be ascribed much of the increase in the volume of bank transactions shown in the tables. reported by 36 leading cities TABLE IS.—Aggregate debits to individual account as reported (including Nevj York City) for which figures are available for each week beginning v:ilh the iveekk ended i*7, week in 1918. ilh th dd Aug. A i*7 1919, 1919 as wellll as Jor J each h corresponding di [In millions of dollars.] Week ending— Aug. 27-28 1 Sept. 3-4 Sept. 10-11 Sept. 17-18 Sept. 24-25 Oct. 1-2 Oct 8-9 . Oct. 15-16 Oct. 22-23 Oct. 29-30 Nov. 5-6 Nov. 12-13 Nov. 19-20 Nov. 26-27 Dec. 3-4 Dec. 10-11 Dec. 17-18 Dec. 24. Dec. 31 . 1919 6,903 5,883 7,125 8,872 7,953 8,355 8,522 7,699 9,145 8,830 8,650 9,434 9,659 8,726 8,215 8,177 9,548 9,055 8,498 .. . . ... 159,249 Total 1 1918 5,324 5,092 5,769 4,607 5,567 6,475 5,879 5,993 7,032 7,685 5,875 6,363 6,919 7,000 6,087 6,297 6,519 5,936 5,880 116,299 Per cent increase 1919 over 1918. 29.7 15.5 23.5 92.6 42.9 29 0 45.0 28.5 30.0 14.9 47.2 48.3 39.8 24.7 35.0 29.9 46.5 52.5 44.5 37.4 The second date represents the end of the corresponding week in 1918. DISCOUNT POLICY AND CREDIT CONTROL. The experience of the past three years has demonstrated the expansive power of the Federal Reserve System. It should be understood, however, that an elastic system of reserve credit and note issue implies capacity to control and the ability to curtail credit. The ability of the system to check expansion under present circumstances and to induce healthy liquidation is now to be tested. Owing to the abnormal ease of money throughout the year 1915 and during the greater part of the year 1916 the Board had little opportunity to test the efficiency of what it conceived to be the 68 ANXUAL REPORT OF THE FEDERAL RESERVE BOARD. correct discount policy. The principle had been adhered to consistently that the Federal Reserve Banks should not encourage rediscounting by members for the sake of profit, but that their own resources should be kept liquid and their reserve position strong. Although section 5202 of the Revised Statutes, which provides that no national banking association shall at any time be in anyway liable for borrowed money to an amount exceeding the amount of its capital stock, had been amended by excepting liabilities incurred under the provisions of the Federal Reserve Act, it was not contemplated by the Board that the member banks would, except to meet seasonal requirements or emergencies, avail themselves of this amendment in order to extend their rediscount lines beyond the original limitations. It was the Board's view also that as a rule the discount rates of the Federal Reserve Banks should be higher than current market rates, thus offering no incentive to member banks to rediscount for the sake of making a profit in the transaction. Because of this policy and of the conditions which prevailed up to the time when it began to appear that the United States would be drawn into the war, the reserve position of the Federal Reserve Banks was so strong as to suggest an analogy between the system and a safe-deposit vault. In his address to Congress, urging the declaration of a state of war with Germany, the President pledged all the resources of the Nation— which, of course, include its man-power, money, credit, and goods— to the successful conduct of the war. By an overwhelming vote the Congress of the United States carried out the recommendations of the President, thus committing the country to the principles and policies outlined in his address. Normal policies had to be subordinated, just as private business was subordinated, to Government business, and discount rates were of necessity fixed with the primary object of assisting the Treasury operations. How effective this policy was is now a matter of history. As has already been pointed out, the Federal Reserve Banks became great bond-distributing organizations; firms and corporations, large and small, men and women in every walk of life, were urged to subscribe for bonds, and the credit facilities of the Federal Reserve Banks were placed at the disposal of member and nonmember banks in order that they might lend freely on bonds for which the subscribers were unable to pay. The public was urged to borrow and buy, and it w^as found after the close of the Victory loan in May, 1919, that more than 20,000,000 subscriptions had been received in response to this appeal. But in addition to the appeal to borrow and buy there was also added the injunction to save and pay. To assist this process, during the 18 months when the war was in progress there was established a ANNUAL KEPORT OF THE i'EDEKAL RESERVE BOARD. 69 rigid control of such credits as were not essential, directly or indirectly, to the prosecution of the war, and the American people proved their ability to economize and to cooperate in the nation-wide policy of conservation. As a result of this control of nonessential credits, and of the cooperation of the banks and the public, the Treasury was able to float within a period of two years $25,000,000,000 of interest-bearing obligations without reducing the reserves of the Federal Reserve Banks below a point which in normal pre-war times would have been regarded as a very strong reserve for a central bank. The combined reserves of the 12 Federal Reserve Banks on January 3, 1919, amounted to 51.3 per cent of their liability for deposits and note issues. Due partly to the gold embargo, this percentage was well maintained during all the period of uncertainty which preceded the flotation of the Victory loan and for some time thereafter, for not until July 9, after the gold embargo had been removed, did the reserves fall even fractionally below 50 per cent. On September 26 the reserves stood at 51 per cent, after which date they show a steady and continuous decline to 44.8 per cent on December 26. Although the period of war financing did not terminate with the year 1918 and the Federal Reserve System was consequently under the continued strain of war finance, that strain had to be met without the aid of war restrictions. The safeguards afforded by these restrictions were removed, for it was impracticable to continue them in time of peace. There is no longer an embargo on exports of gold nor any regulation or control of foreign exchange, with the trifling exceptions already noted; the controls set up over exports and imports, production and consumption, with a view of conserving the national resources and reducing waste, have practically disappeared. As a result the problems of the Federal Reserve System have been greatly increased, more particularly the problem of controlling credit. The Federal Reserve System has met the requirements of war and readjustment by expanding without, however, encroaching upon its legal reserves; it is capable, if need be, of expanding still further without having recourse to the emergency provisions of the act, and very much further by availing itself of those provisions. But the time has come for it to demonstrate its power to move in the opposite direction, and to prove its ability to do so without shock and with a minimum disturbance of business and industry. Fortunately the condition of the Treasury is such that the Board can now feel free to inaugurate discount policies adjusted to peacetime conditions and needs. The large volume of Government bonds looking for permanent ownership during the year was, however, an important factor in the situation and retarded the adoption of a normal discount policy. Until the absorption of Liberty bonds is fairly complete the Federal Reserve System will be in a transition 70 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. stage and normal banking policies can not be made entirely effective. The absorption by investors of Government bonds, as indicated by the figures cited earlier in this report, is a gratifying step in this direction. It should, however, be repeated that the time has come for the system, in the interest of commerce and business, to exercise ts power to regulate and control the credit situation. The normal and traditional method of credit control has been the discount rate; its efficacy, however, presupposes normal conditions. An advance in rate operates under normal conditions not only to diminish the demand for credit by making certain activities unprofitable but as well to increase the supply of credit by attracting it from other centers or countries. The conditions that make this traditional control effective do not all exist at the present time. The United States stands almost alone as an important free gold market. Other countries are seeking and have obtained large credits m the United States, as is evidenced by the fact that our exports exceeded imports during the year by about four billions of dollars, and we have paid our adverse balances in gold. It should be recognized that credits extended to Europe create a demand for commodities that competes with the domestic demand and this competition is one of the potent causes of high prices. The demand for commodities from domestic as well as foreign sources is so far in excess of the supply that the increased cost of credit due to an advance in rates is absorbed in the price, and speculation, anticipating large profits, is not checked by any reasonable advance in rates of interest. These conditions are all adverse to an easy and effective operation of credit control by means of discount rates. Nevertheless, the discount rate is an indispensable factor in the regulation and control of credit. When there are legal limitations on the rates member banks may charge, a high reserve bank rate has a restraining influence upon them and upon their customers. Although there are no specific limitations imposed upon the amount of borrowings by member banks at the Federal Reserve Banks, there is a potential limitation provided for in the act. In that part of section 4 which relates to the duties of the board of directors of a Federal Reserve Bank there is the following: "Said board shall administer the affairs of said bank fairly and impartially and without discrimination in favor of or against any member bank or banks and shall, subject to the provisions of law and the orders of the Federal Reserve Board, extend to each member bank such discounts, advancements, and accommodations as may be safely and reasonably made with due regard for the claims of other member banks." Should all the member banks of a Federal Reserve Bank be borrowers, and should all ask for accommodations proportionate to those which may have been advanced to a few, the Federal Reserve Bank ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 71 would not be able out of its own resources to meet the demand. Therefore it is possible to determine theoretically what a fair line of accommodation for any member bank would be; that is, what amount of accommodation can be granted " safely and reasonably : * * * with due regard for the claims of other member banks." Any attempt, however, to control credit by the application of this rule is subject to serious administrative difficulties. If the paper offered is eligible and good, it would be better for a reserve bank to grant accommodation at a price rather than to refuse it entirely, but the act, subdivision (d), section 14, provides that a Federal Reserve Bank shall have power to establish from time to time, subject to review and determination of the Federal Reserve Board, rates of discount to be charged by the Federal Reserve Bank for each class of paper, which shall be fixed with a view of accommodating commerce and business. There is no authority, however, for establishing graduated rates based upon the total borrowings of a member bank, and consequently when it becomes necessary to advance the discount rate in order to curb the demands of those banks rediscounting with the Federal Reserve Banks in very large amounts, the same rate would have to apply to the moderate requirements of other member banks who may rediscount with the Federal Reserve Banks infrequently and never excessively. Thus the application of rate advances as a corrective or deterrent to certain banks tends to raise the level of current rates to all. The Board, therefore, recommends to Congress that an additional power be granted it, by adding to subdivision (d), section 14, a proviso that each Federal Reserve Bank may, with the approval of the Federal Reserve Board, determine by uniform rule, applicable to all its member banks alike, the normal maximum rediscount line of each member bank and that it may submit for the review and determination of the Federal Reserve Board graduated rates on an ascending scale to apply equally and ratably to all its member banks rediscounting amounts in excess of the normal line so determined. In this way, in the opinion of the Board, it would be possible to reduce excessive borrowings of member banks and to induce them to hold their own large borrowers in check without raising the basic rate. The Federal Reserve Banks would thus be provided with an effective method of dealing with credit expansion more nearly at the source than is now practicable and without unnecessary hardship to banks and borrowers who are conducting their affairs within the bounds of moderation. The expansion of credit set in motion by the war must be checked. Credit must be brought under effective control and its flow be once more regulated and governed with careful regard to the economic welfare of the country and the needs of its producing industries. 72 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Deflation, however, merely for the sake of deflation and a speedy return to "normal"—-deflation merely for the sake of restoring security values and commodity prices to their prewar levels without regard to other consequences, would be an insensate proceeding in the existing posture of national and world affairs. It must never be forgotten that productive industry is profoundly affected by credit conditions. Modern business is done on credit One of its life-giving principles is credit. The mood and temper of the business community are deeply affected by the state of credit and may easily be disturbed by ill-considered or precipitate action. A system of credit control must always be judged by what it does to maintain a healthy condition of mind on the part of all sections and classes of the producing community. The ultimate test of the functioning of a credit system must be found in what it does to promote and increase the production of goods. True in general, the truth of this observation deserves to be particularly emphasized in the present deranged state of world industry and world trade when production is the crying need of the hour everywhere. Too rapid or too drastic deflation would defeat the very purpose of a well-regulated credit system by the needless unsettlement of mind it would produce and the disastrous reaction that such unsettlement would have upon productive industry. Radical and drastic deflation is not, therefore, in contemplation^ nor is a policy of further expansion. Either course would in the end lead only to disaster and must not be permitted to develop. The credit situation in the United States is at bottom sound and safe. Our economic and financial position is essentially strong. There need be no occasion for apprehension as to our ability to effect the transition from war-time to peace-time conditions if reasonable safeguards against the abuse of credit are respected. There is, however, no need for precipitate action or extreme measures. Extremes must be avoided, the process of adjusting the volume of credit to a normal basis should be effected in an orderly manner, and its rapidity must be governed by conditions and circumstances as they develop. Much will depend upon the cooperation of the business and general community. Indeed without such cooperation progress can be neither rapid nor substantial. Much will depend also upon the rapidity with which the unabsorbed portion of the outstanding issues of war securities passes into the hands of permanent holders. As the national debt is thus absorbed and as it is reduced through the operation of the sinking fund, the loan accounts of the banks should be reduced correspondingly until the proper balance between the volume of credit and the volume of concrete things, which credit helps to produce and which are the normal basis of credit, is restored. This equilibrium, it can not be too frequently or too emphatically stated, can be restored ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 73 only by speeding up the processes of production, by the orderly distribution of goods, by the avoidance of wasteful consumption, and by the increased accumulation of savings. These are the fundamental economic processes upon which the proper functioning of the Federal Reserve Banks must depend. The Federal Eeserve System can do much to assist these processes but it can not of itself and alone compel them. Efficacious action along these lines involves the intelligent and earnest cooperation of the business and general community. While the Federal Reserve Board will always be mindful of the interdependence of credit and industry and of the influence exerted on prices by the general volume of credit, the Board nevertheless can not assume to be an arbiter of industry or prices. Its primary duty, as the guardian of the Nation's ultimate banking reserve, is to see that the banks under its supervision function effectively and properly as reserve banks. By direction of the Federal Reserve Board. W. P. G. HARDING, Governor. The SPEAKER OF THE HOUSE OF REPRESENTATIVES. EXHIBITS. 178983—20 6 75 Exhibit A.—DISCOUNT RATES. No. 1.—Discount rates (high and low) in force during the period from Nov. 16, 1914, to Dec. 31, 1919. MATURITIES. Within 10 days. Federal Reserve Bank. Within lo days, 11 to 30 including member days. banks' collateral notes. 16 to 30 days. 31 i1 60 da 01 to 90 days. 3 w 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... Jan. 1, 1919, to Dec. 31,1919... N e w York: Nov. 16,1914, to Dec. 31,1915. 4f 51 | Jan. 1, 1916, to Dec. 31, 1916... Jan. 1,1917, to Dec. 31,1917... Jan. 1,1918, to Dec. 31,1918... Jan. 1,1919, to Dec. 31,1919... Philadelphia: Nov. 16,1914, to Dec. 31,1915. 4 4f 3i 6 4 5 4 4 4 5 4! 4f 41 4 Jan. 1,1917, to Dec. 31,1917... Jan. 1, 1919, to Dec. 31,1919... 5 5 6 5 5 | 4 5 4| 4! 4 | 5 5 5 5 5 6 5 5 5 5 5 5 5 34 3 4 34 4 34 4 5 5 4! 4 41 4i ... . 5 5 5 5 5 Trade acceptances til to 90 days. Commodity pa DC iwithin 90 days.i w 34 j 34 34 4 4 34 I 3 3§ 4 34 4 34 41 4 4f 4 4| 4 34 34 4 34 ! 34 34 3 4 4 34 4| 4 41 4f 3J 1 4 i W 41 6 44 44 Trade acceptances within 60 days (see note 1). J 4 j4 Jan. 1,1916, to Dec. 31,1916... Jan. 1,1918, to Dec. 31,1918-.. III o Secured by United States Government Agriwar obligations. cultural and live- Within stock 15 days, paper including 10 to 90 over 90 member days. banks 7 clays. collateral notes. .... 3* 4 41 o 3 I 3 3 | 3i 3§ ! 3* 4 3 3 34 ! 44 ! .- I Cleveland: 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 Jan. 1, 1919, to Dec. 31, 1919 Richmond: 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 Jan. 1,1919, to Dec. 31,1919 Atlanta: 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 Jan. 1,1919, to Dec. 31,1919 Chicago: 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 Jan, 1,1919, to Dec. 31,1919 St. Louis: 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 Jan. 1, 1919, to Dec. 31,1919 1 6 | 31 31 6 41 41 4f 4f I 4f 4| 41 5 4| 41 4f 61 41 4 4 4 4| 4! 41 4f 6 4 4 4 4 4| 41 4 4 4 6 4 31 4 4 4 41 4i 4f 4f 6 4 41 4? 4f 41 4i 4 4 4 41 4f 6 44 41 41 41 44 4| 41 4f 4| 6 5 5 6 4 4* 5 4* 4 4 4 41 41 41 5 5 6* 4 4 4 4 61 41 41 4f 6 4* 5 5 4f 6 4 41 4f 4| 41 4i 41 41 41 4| 4| 4 4 4 44 4 31 | 4i 4 , 4i Si 51 31 4 4i 6 5 4* 31 31 4 4 3§ 4 4f 41 31 4 4 51 6 5 51 51 51 31 4| 4 4 6 5 51 51 31] 31 4| 4i 31 4 4 31 4 4 3 3 4 •31 4 4 41 41 41 4 4 41 4 31 4 31 31 4 31 4 31 4 4i 4 41 41 41 31 31 31 41 41 31 31 31 31 31 4 4 41 41 41 31 31 41 41 31 31 31 41 31 31 31 31 31 31 31 5 5 5 4 * | 51 31 31 4 41 4 4 44 41 3 3 4 41 31 4 31 4 41 41 41 4 31 31 4 31 31 31 41 41 41 41 4 »Commodity rates were established during September and October, 1915, and merged with those for commercial paper of corresponding maturities in November and December, 1917. No. 1,—Discount rates (high and loiv) in force during the period from Nov. 16, 1914, to Dec. 31, 1919—-Continued. 00 MATURITIES—Continued. High. 01 to 90 days. 64 4 4 4 % 4| 4 44 41 44 44 44 44 5 4i 4* 4* 5 54 54 54 4 61 4 5 44 44 54 5 5^ 4 6* 4* 5 w Minneapolis: 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... Jan. 1,1919, to Dec. 31,1919... Kansas City: 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... Jan. 1, 1919, to Dec. 31, 1919... 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... Jan. 1, 1919, to Dec. 31, 1919... 31 to 00 days. Secured by United States Government Agriwar obligations. Trade cultural Trade acceptand live- Within acceptances stock 15 days, ances within including 10 to 60 00 days paper 01 to 00 over 90 member days. (see note). days. days. banks' collateral notes. Low. Federal Reserve Bunk. 16 to 30 days. i igh. Within 11 to 30 10 davs. I days. Within 15 days, including member banks' collateral notes. W 4 4 4£ 4 4i 5k 5 4* 5 i 44 4* 5 4 4 34 44 4 41 42- 5 44 5 5 5 4 4 44 4f 44 51 5 •5} Commodity papur within 90 days. •s, ! 3 .... 34 34 34 I 34 44 4i 3 34 44 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... Jan. 1, 1919, to Dec. 31,1919... 31 41 5 5 31 41 4 4 3i 41 61 41 41 5 5 41 41 4i 41 4f 51 51 51 51 31 4* 31 31 31 4 3 3 4 3 3 3 4| 5 4 31 31 4 31 3 4 4! 1 Maximum rate during 1919 for maturities 16 to 60 days, 4| per cent. 2 Commodity paper rates for bills maturing within 30 days, 31 per cent; 31 to 60 days, 4 per cent; 61 to 90 days, 4J per cent. *Oct. 20, 1917, rate of 3J per cent for commodity paper maturing within 60 days and 4 per cent for paper maturing after 60 days but within 90 days. NOTE 1.—In cases during 1918 and 1919 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. NOTE 2.—Rates on paper secured by War Finance Corporation bonds, established by all Federal Reserve Banks between Apr. 4 and 11,1919, are 1 percent higher than on commercial paper of corresponding maturities. X W I o o d 15 Exhibit B.—FEDERAL RESERVE NOTES. o N o . 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 1919. [In thousands of dollars.] Boston. Federal reserve notes received from the Comptroller of the Currency less notes returned for destruction: Jan.31 Feb. 28 Mar. 28 Apr. 25 May 29 June 27 July 25 Aug. 29 Sept. 26 Oct. 31 Nov. 28 Dec. 26 , Federal Reserve notes issued to Federal Reserve Banks (net amount): Jan.31 Feb. 28 Mar.28 Apr.25 May29 June 27 July 25 New ! Philadel- CleveYork. i phia. land. Richmond. Atlanta, j Chicago. | St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Total. 188,464 931,171 | 253,059 188,542 929,765 | 244,994 196,966 937,789 237,732 211,632 957,763 235,896 202,680 961,659 223,123 205,802 959,788 241,192 215,110 963,249 237,364 229,731 965,368 248,711 264,352 972,475 254,177 274,109 954,382 260,807 276,476 966,849 261,810 284,349 1,035,663 | 270,778 283,127 281,710 278,833 270,883 267,987 259,177 260,089 269,120 280,233 283,915 288,329 300,955 159,701 156,427 159,816 157,968 149,008 142,944 136,717 136,364 145,636 169,152 169,797 174,170 169,703 171,067 174,995 177,119 177,012 181,088 182,618 177,830 179,676 194,520 202,072 203,254 492,607 485,004 480,401 482,858 483,859 476,452 486,166 494,233 514,972 529,285 528,146 539,058 130,226 132,731 136,331 139,108 137,338 135,143 136,503 146,981 153,590 167,362 180,374 187,515 103,280 101,169 99,110 100,713 100,969 99,787 96,866 95,348 97,151 96,383 93,660 96,476 126,517 123,477 120,102 116,991 116,434 114,290 113,367 109,753 111,993 110,477 113,753 115,695 78,663 76,964 74,764 72,489 71,493 70,104 69,029 67,190 69,811 88,045 85,426 90,347 226,277 224,663 224,539 223,928 221,733 222,445 232,070 230,029 243,115 249,851 264,723 278,951 3,142,795 3,116,513 3,121,378 3,147,348 3,113,295 3,108,212 3., 129,148 3,170,658 3,287,181 3,378,288 3,431,415 3,577,211 767,671 772,365 794,189 814,163 818,059 818,788 823,649 254,562 141,466 132,862 130,456 129,508 120,020 113,676 110,429 114,958 115,341 120,080 119,319 117,117 120,799 122,334 444,167 121,411 436,724 121,366 444,561 120,161 452,418 118,528 453,179 117,958 453,372 116,623 457,726 121, 91,830 89,569 88,120 87,973 85,829 84,547 82,806 112,897 108,957 105,722 103,611 102,054 100,490 100,017 56,948 52,704 51,449 49,184 47,788 48,529 48,854 217,277 213,663 218,539 215,928 215,733 216,445 221,470 2,703,420 2,678,606 2,705,708 2,732,403 2,708,447 2,694,640 2,723,601 162,564 163,221 171,826 184,172 178,160 181,902 188,950 j 217,669 222,894 215,532 216,536 217,083 213,112 215,884 248,940 245,073 241,063 235,467 226,357 230,189 i w w o Aug. 29 ! Sept. 26 | Oct. 31 ! Nov. 28 j Dec. 26 | Gold and gold certificates deposited with ! or to credit of Federal Reserve agents: j Jan. 31 ! Feb. 2 8 . . . . I Mar. 28 | Apr.25 ] May 29 j toe 27... | July 25 j Aug. 29 j Sept. 26 | Oct. 31 j Nov. 28 : Dec. 26 j Eligible paper held by Federal Reserve ! agents: Jan. 31 | Feb. 28 ! Mar. 28 Apr.25 May29 | June 27July 25 Aug. 29 Sept. 26 Oct. 31 Nov.28 Dec. 26 206,231 221,452 222,229 228,196 253,669 830,368 841,475 S21,382 845,849 929,663 220,531 227,397 232,327 233,830 249,438 245,340 | 108,327 j 117,130 252,013 ! 120,428 ! 124,277 254,935 ! 143,454 j 145,955 264,509 146,779 ! 153,207 284,335 155,232 j 162,809 463,233 477,732 491,205 499,786 533,738 125,191 132,560 150,252 161,494 167,515 79,638 84,371 85,703 85,550 88,916 98,293 102,253 102,267 107,443 111,005 49,555 54,386 64,040 72,436 77,977 223,329 236,915 244,951 260,573 277,801 2,767,166 2,875,259 2,958,700 3,059,652 3,292,098 52,220 48,954 54,059 60,405 56,893 57,135 59,163 68,544 67,965 73,242 62,090 73,782 260,979 257,256 268,301 276,335 286,920 292,311 287,952 281,659 288,849 281,912 282,877 307,385 78,632 68,566 55,305 76,069 68,375 68,205 70,576 75,923 75,889 72,519 78,522 82,491 140,744 135,947 140,971 138,796 130,019 115,510 119,522 130,573 137,686 133,388 105,502 125,048 304,032 296,589 269,506 255,723 266,485 261,677 266,031 266,538 318,957 282,430 247,491 245,883 64,267 68,316 40,737 40,393 56,804 53,729 61,069 62,987 46,436 73,388 69,100 65,920 58,174 54,563 51,104 28,207 40,263 36,581 33,660 33,142 35,445 36,077 34,354 35,570 51,230 4g,101 38,725 34,614 29,957 25,113 30,770 39,356 34,596 35,980 38,917 39,858 22,206 19,765 17,565 16,789 16,594 15,904 15,780 16,040 16,831 21,615 24,996 27,878 125,553 ^101,739 " 93,915 107,404 105,269 112,901 88,466 101,965 99,751 101,526 104,399 130,447 1,253,330 1,187,760 1,113,070 1,109,949 1,131,725 1,113,824 1,108,051 1,142,589 1,196,325 1,205,576 1,148,724 1,240,032 145,637 155,443 169,345 172,138 166,352 173,354 167,542 161,447 176,265 170,627 198,776 211,342 717,489 830,363 732,816 755,970 774,782 721,939 809,390 794,178 741,482 917,586 956,361 977,365 143,199 156,559 161,480 142,687 151,084 149,503 147,127 156,096 153,784 161,113 159,400 176,867 138,602 167,619 153,228 148,517 158,956 161,133 168,720 166,510 169,543 175,609 227,862 222,792 184,286 211,245 255 859 236,938 274,317 262,625 271,855 251,899 261,276 295,648 364,958 383,370 59,921 64,259 84,702 86,486 63,987 66,339 65,433 67,852 95,535 87,208 106,739 115,098 43,509 46,924 58,989 61,143 49,774 59,992 58,889 49,558 57,880 64,458 66,115 69,456 78,615 83,013 99,389 89,497 89,917 93,655 83,824 74,767 103,517 107,701 105,586 107,359 53,193 58,346 53,094 56,754 53,652 53,874 58,955 58,819 56,209 64,100 57,991 61,795 54,106 I 41,187 47,374 | 40,590 40,763 I 42,119 31,515 | 43,699 42,592 31,554 32,090 j 42,668 30,863 | 44,199 23,951 | 41,911 30,763 j 43,157 51,501 41,998 53,553 46,923 64,734 41,036 87,500 102,968 105,152 102,398 92,418 93,340 100,549 94,892 | 95,796 j 102,588 | 100,780 | 120,967 76,857 80,834 78,973 80,278 83,681 84,250 95,073 91,735 82,989 109,097 102,356 106,172 94,677 118,929 127,201 111,300 120,361 114,463 144,017* 127,808 140,277 171,390 171,606 115,593 1,823,485 2,076,502 2,080,228 2,044,106 2,079,281 2,031,467 2,171,374 2,095,561 2,134,553 2,427,125 2,618,530 2,711,898 00 N o . 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 1919—Continued. [In thousands of dollars.] Boston. Federal Reserve notes held by banks: Jan.31 Feb. 28 Mar. 28 Apr. 25 May 29 June 27 July 25 Aug. 29 Sept. 26 Oct. 31 Nov. 28 Dec. 26 Federal Reserve notes in actual circulation: Jan. 31 Feb. 28 Mar.28 Apr. 25 M,ay29 June 27 July25 Aug. 29 Sept. 26 Oct. 31 Nov. 28 Dec. 26 New York. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. St. Louis Minneapolis. Kansas City. FranDallas. San cisco. Total. 12,999 3,669 4,952 6,435 5,989 5,743 8,469 7,264 13,623 10,133 7,368 7,214 119,758 94,746 71,029 75;351 75,669 81,351 84,484 78,085 88,340 70,667 78,451 104,719 7,748 12,126 9,446 9,943 11,349 9,409 14,191 7,779 14,818 16,034 10,779 9,165 23,409 15,871 12,431 10,468 11,868 11,694 11,395 14,204 9,733 11,195 13,498 11,451 5,396 4,267 4,258 4,117 4,536 4,046 4,694 3,654 5,328 4,862 5,223 6,539 3,567 4,556 4,105 3,986 3,767 5,137 5,499 3,499 3,265 3,979 4,640 6,210 39,141 25,918 27,015 25,963 30,852 31,700 34,333 23,489 27,684 30,808 24,724 23,720 12,044 12,528 12,146 14,433 13,778 13,763 16,564 18,039 19,168 19,492 20,485 19,063 1,302 1,410 1,062 1,492 1,935 2,515 3,167 2,004 1,972 1,855 1,766 1,441 7,304 7,348 6,107 5,191 6,469 6,813 7,869 5,760 6,991 6,696 5,694 5,905 1,572 1,537 1,342 1,456 1,520 1,592 2,297 2,952 2,394 2,888 3,260 3,091 18,451 22,323 30,039 24,016 21,423 21,697 26,142 19,808 26,589 27,215 31,487 35,934 252,691 206,299 183,932 182,851 189,155 195,460 219,104 186;537 219,905 205,824 207,375 234,452 149,565 159,552 166,874 177,737 172,171 176,159 180,481 198,967 207,829 212,096 220,828 246,455 647,913 677,619 723,160 738,812 742,390 737,437 739,165 752,283 753,135 750,715 767,398 824,944 209,921 210,768 206,086 206,593 205,734 203,703 201,693 212,752 212,579 216,293 223,051 240,273 231,153 233,069 232,642 230,595 223,599 214,663 218,794 231,136 242,280 243,740 251,011 272,884 136,070 128,595 126,198 125,391 115,484 109,630 105,735 104,673 115,100 138,592 141,556 148,693 111,391 110,785 115,975 115,333 113,350 115,662 116,835 113,631 121,012 141,976 148,567 156,599 405,026 410,806 417,546 426,455 422,327 421,672 423,393 439,744 450,048 460,397 475,062 510,018 109,367 108,838 108,015 104,095 104,180 102,860 104,729 107,152 113,392 130,760 141,009 148,452 90,528 88,159 87,058 86,481 83,894 82,032 79,639 77,634 82,399 83,848 83,784 87,475 105,593 101,609 99,615 98,420 95,585 93,677 92,148 92,533 95,262 95,571 101,749 105,100 55,376 51,167 50,107 47,728 46,268 46,937 46,557 46,603 51,992 61,152 69,176 74,886 198,826 191,340 188,500 191,912 194,310 194,748 195,328 203,521 210,326 217,736 229,086 241,867 2,450,729 2,472,307 2,521,776 2,549^552 2,519,292 2,499,180 2,504,497 2,580,629 2,655,354 2,752,876 2,852,277 3,057,646 00 No, 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.] Paper collateral for notes issued. Gold cover for notes issued. Federal Reserve notes out- Coin and standing. certificates in vault. In gold In redemption settlement fundfund— United Federal States Reserve Treasurer. Board. Total. Amount required. Amount actually held. 1,604/664 1,606,271 1,481,196 1,475,724 1,450,090 1,460,693 1,473,339 1,479,852 1,490,846 1,507,063 1,508,420 1,583,606 1,592,638 1,613,916 1,641,653 1,650,865 1,622,454 1,626,575 1,601,600 1,590,362 1,585,966 1,576,722 2,069,228 1,993,694 1,813,066 1,978,084 1,823,485 1,920,051 2,037,506 2,022,006 2,076,502 2,101,419 2,080,990 2,084,708 2,080,228 2,037,260 2,111,610 2,064,724 2,044,106 2,069,765 2,087,062 2,135,541 2,052, 784 2,079,281 Excess paper held. Federal Reserve notes held by issuing banks. Federal Reserve notes in actual circulation. 1919. Jan. 3 10 17 24 31 Feb. 7 14 20 28 Mar. 7 14 21 28 Apr. 4 11 18 25 May 2 9 16 23 866,047 844,516 770,301 730,916 ,703,420 ,691,859 690,702 677,835 678,606 670,903 679,021 696,544 705,708 714,089 724,097 736,384 72-2,403 731,274 735,798 741,265 725,791 708,447 246,315 254,656 249,707 241,527 240,527 225,147 225,147 225,147 229,147 232,146 240.146 243,006 245.147 237,747 235,747 232,747 236,498 230,498 232,498 240,498 228,498 228,498 84.632 I 82,599 80,598 77,193 80,142 84,562 83,758 83,379 87,438 79,457 78,718 78,005 78.633 88,520 84,539 75,595 84,829 84,094 84,133 85,084 81,219 87,251 930,436 900,990 958,800 936,472 932,661 921.457 908.458 889,457 871,175 852,237 851,737 791,927 789,290 773,906 762,158 777,177 788,622 790.107 817,567 825,321 830.108 815,976 1,261,383 1,238,245 1,289,105 1,255,192 1,253,330 1,231,166 1,217,363 1,197,983 1,187,760 1,163,840 1,170,601 1,112,938 1,113,070 1,100,173 1,082,444 1,085,519 1,109,949 1,104,699 1,134,198 1,150,903 1,139,825 1.131,725 464,564 387,423 331,870 502,360 373,395 459,358 564,167 542,154 585,656 594,356 572,570 501,102 487,590 423,344 469,957 413,859 421,652 443,190 485,462 545,179 466,818 502,559 218,442 253,835 257,212 264,360 252,691 237,694 222,314 211,587 206,299 182,366 175,926 185,857 183,932 166,419 175,509 192,680 182,851 182,234 179,049 209,226 221,538 189,155 2,647,605 2,590,681 2,513,089 2,466,556 2,450,729 2,454,165 2,468,388 2,466,248 2,472,307 2,488,537 2,503,095 2,510, 687 2,521,776 2,547,670 2,548,588 2,543,704 2,549,552 2,549,040 2,556,749 2,532,039 2,504,253 2,519,292 1 1 w IS 00 CO N o . 3.—Federal Reserve notes outstanding {%. c, net amount issued to Federal Reserve Banks), in actual circulation, and gold and paper collateral held by Federal Reserve agents against outstanding notes—Continued. [In thousands of dollars.] Gold cover for notes issued. Federal Reserve notes outstanding. Coin and certificates in vault. In reIn gold demption settlement fund— fund— United Federal States Reserve Board. Treasurer. Paper collateral for notes issued. Total. Amount required. Amount actually held. Excess paper held. Federal Reserve notes held by issuing banks. Federal Reserve notes in actual circulation. 1919. June 6.. 13.. 20.. 27.. July 3 . . ll.. 18.. Aug. 25.. 1 8.. 15.. 22.. 29.. Sept. 5. 12. 19. 26. Oct. 3 . . 10.. 17.. 24.. 31.. 2,722,606 2,709,895 2,693,198 2,694,640 2,740,893 2,760,288 2,728,902 2,723,601 | 2,715,374 2,725,263 2,734,254 2,748,740 2,767,166 2,794,100 2,830,146 2,851,622 2,875,259 2,899,122 2,949,244 2,970,132 2,980,610 2,958,700 231,498 224,998 218,998 219,998 83,713 824,297 81,222 86,817 81,024 228,998 231,998 223,598 93,817 88,576 89, 745 84,912 811,750 821,401 812,802 832,463 842,494 820,830 801,891 81,549 84,764 768,510 776,035 221,248 221,248 223,248 227,248 226,248 236,248 236,248 243,248 245,408 247,248 87,962 104,350 803,684 796,430 94,160 100,075 812,181 835,845 854,431 861,632 242,248 93,608 849,144 830,542 244,248 242,248 88,108 854,341 91,949 867,105 864,686 879,659 242,248 242,249 93,090 101,921 99,933 90,999 83,668 1,139,508 1,117,970 1,127,216 1,113,824 1,155,278 1,163,068 1,134,173 1,108,051 1,071,307 1,084,047 1,118,894 1,127,028 1,142,589 1,172,168 1,190,769 1,208,961 1,196,325 1,583,098 1,591,925 1,565,982 1,955,496 2,001,203 2,010,144 2,034,467 2,150,698 1,580,816 1,585,615 1,597,220 1,594,729 1,615,550 1,644,067 2,210,078 2,112,717 2,171,374 2,140,965 1,641,216 2,150,291 1,615,360 1,642,661 1,678,934 2,037,471 2,039,265 2,095,561 2,107,324 2,025,994 1,913,595 2,134,553 1,621,712 1,624,577 1,621,932 1,639,377 372,398 409,278 444,162 453,651 209,569 210,630 565,083 204,945 195,460 188,545 612,858 517,988 555,824 222,161 216,854 219,104 496,898 509,075 208,554 193,206 422, 111 417,553 470,984 485,392 193,350 195,206 386,617 270,934 208,918 230,364 219,905 1,166,398 1,186,697 1,732,724 2,264,643 455,619 531,919 1,762,547 2,312,574 550,027 1,201,302 1,768,830 2,371,047 602,217 1,197,933 1,782,677 2,366,692 584,015 1,205,576 1,753,124 2,427,125 674,001 186,537 182,403 2,513,037 2,499,265 2,488,253 H 2,499,180 2,552,348 2,538,127 2,512,048 2,504,497 2,506,820 2,532,057 2,540,904 2,553,534 2,580,629 2,611,697 2,621,228 190,936 2,621,258 2,655,354 2,708,186 207,560 217,563 2,741,684 2,752,569 227,153 205,824 2,753,457 2,752,876 W O Nov. 7 14 21 28 Dec. 5. 12. 19. 26. 3,000,867 3,036,690 3,031,492 3,059,652 3,108,377 3,148,740 3,220,560 3,292,098 238,248 238,248 236,248 236,248 249,648 244,848 244,648 244,148 93,368 105,267 98,821 99,461 98,158 90,489 110,000 103,575 875,659 850,804 831,017 813,015 824,385 853,006 847,006 892,309 1,207,275 1,194,319 1,166,086 1,148,724 1,172,191 1,188,343 1,201,654 1,240,032 1,793,592 1,842,371 1,865,406 1,910,928 1,936,186 1,960,397 2,018,906 2,052,066 2,530,781 2,509,360 2,519,660 2,618,530 2,536,068 2,615,646 2,494,034 2,711, 898 737,189 666,989 654,254 707,602 599,882 655,249 475,128 659,832 194,108 228,234 214,319 207,375 227,018 241,305 231,666 234,452 2,806,759 2,808,456 2,817,173 2,852,277 2,881,359 2,907,435 2,988,894 •6,057,64b CO 00 N o . 4.—Federal Reserve notes in actual circulation and per cent of gold cover therefor during the calendar year 1919. [In thousands of dollars.] Total cash reserves. Balance Gold available reserve Reserves Federal as reserve against required against Reserve Federal against net Federal notes in Reserve deposits— Reserve 35 per cent. notes in cir- circulation. notes in circulation, culation. 1919. Jan. Feb. Mar. Apr. May 3.. 10.. 17.. 24.. 31.. 7.. 14.. 20.. 28.. 7.. 14.. 21.. 28.. 4.. 11.. 18. 25. 2. 9. 16. 23. 2,152,154 2,161,898 2,170,163 2,168,387 2,179,646 2,175,614 2,185,318 2,191,532 2,188,723 2,205,462 2,196,737 2,208,578 2,210,524 2,218,628 2,211,989 2,230,859 2,240,152 2,237,219 2,242,784 2,245,857 2,247,933 2,255,106 543,028 551,553 557,369 537,838 580,810 564,956 610,632 605,779 628, 855 630,732 619,306 619,026 609,499 596,178 622,270 607,275 613,233 621,233 617,858 652,860 629,127 640,822 1,609,126 1,610,345 1,612,794 1,630,549 1,598,836 1,610,658 1,574,686 1,585,753 1,559,868 1,574,730 1,577,431 1,589,552 1,601,025 1,622,450 1,589,719 1,623,584 1,626,919 1,615,986 1,624,926 1,592,997 1,618,806 1,614,284 2,647,605 2,590,681 2,513,089 2,466,556 2,450,729 2,454,165 2,468,388 2,466,248 2,472,307 2,488,537 2,503,095 2,510,687 2,521,776 2,547,670 2,548,588 2,543,704 2,549,552 2,549,040 2,556,749 2,532,039 2,504,253 2,519,292 Per cent. 60.8 62.2 64.2 66.1 65.2 65.6 63.8 64.3 63.1 63.3 63.0 63.3 63.5 63.7 62.4 63.8 63.8 63.4 63.5 62.9 64.6 6,4.1 Total cash reserves. Balance available Reserves Federal as reserve required Reserve against against net notes in Federal deposits— Reserve circulation. 35 per cent. notes in cir- culation. 1919. July Aug. Sept. Oct. Nov. 3 11 18 25 1 8 15 22 29 5 12 19 26 3 10 17 24 31 7 14 21 28,.,.. 2,195,353 2,180,211 2,177,481 2,161,023 2,156,327 2,152,118 2,151,723 2,142,701 2,135,976 2,136,870 2,138,499 2,162,057 2,187,505 2,205,511 2,202,100 2,199,185 2,214,561 2,205,592 2,187,369 2,200,106 2,186,972 2,159,666 620,201 644,852 619,324 628,796 618,163 607,440 591,036 567,401 570,331 568,441 566,376 524,970 571,926 604,193 610,348 628,656 627,341 647,681 654,679 650,390 646,380 661,290 1,575,152 1,535,359 1,558,157 1,532,227 1,538,164 1,544,678 1,560,687 1,575,300 1,565,645 1,568,429 1,572,123 1,637,087 1,615,579 1,601,318 1,591,752 1,570,529 1,587,220 1,557,911 1,532,690 1,549,716 1,540,592 1,498,376 2,552,348 2,538,127 2,512,048 2,504,497 2,506,820 2,532,057 2,540,904 2,553,534 2,580,629 2,611,697 2,621,228 2,621,258 2,655,354 2,708,186 2,741,684 2,752,569 2,753,457 2,752,876 2,806,759 2,808,456 2,817,173 2,852,277 Gold reserve against Federal Reserve notes in circulation. Per cent. 61.7 60.5 62.0 61.2 61.4 61.0 61.4 61. 7 60.7 60.1 60.0 62.5 60.8 59.1 58.1 57.1 57.6 56.6 54.6 55.2 54.7 52.5 > o H O hrj H w t=3 w O § June 6 13 20 27. 2,270,343 2,261,988 2,234,459 2,216,256 599,241 628,170 619,965 612,743 1,671,102 1,633,818 1,614,494 1,603,513 2,513,037 2,499,265 2,488,253 2,499,180 66. S 65.4 64.9 64.2 Dec. 5. 12. 19. 26. 2,154,095 2,160,405 2,154,911 2,135,536 616,532 625,249 563, 824 596,563 1,537,563 1,535,156 1,591,087 1,538,973 2,881,359 2,907,435 2,988,894 3,057,646 53.4 52.8 53.2 50.3 00 N o , 5.—Federal Reserve notes, by denominations, Bank. Boston: Printed.. Shipped. printed, shipped to Federal Reserve agents and United States subtreasuries since organization of banks, and on hand in reserve vault Dec. SI, 1919. Fives. Tens. Twenties. Fifties. Hundreds. $105,280,000 102,500,000 $204,880,000 203,000,000 $140,880,000 136,000,000 $38,800,000 21,000,000 $33,600,000 20,400,000 Five hundreds. Thousands. Five thousands. Ten thousands. $8,400,000 2,600,000 $30,400,000 6,800,000 $12,000,000 4,000,000 $16,000,000 8,000,000 $590,240,000 504,300,000 Total. On hand. 2,780,000 1,880,000 4,880,000 17,800,000 13,200,000 5,800,000 23,600,000 8,000,000 8,000,000 85,940,000 New York: Printed..-. Shipped... 428,260,000 428,200,000 698,640,000 696,560,000 550,080,000 511,440,000 126,800,000 125,000,000 208,000,000 181,600,000 34,600,000 18,800,000 79,600,000 46,400,000 26,000,000 6,000,000 52,000,000 12,000,000 2,203,980,000 2,026,000,000 On hand. 60,000 2,080,000 38,640,000 1,800,000 26,400,000 15,800,000 33,200,000 20,000,000 40,000,000 177,980,000 Philadelphia: Printed Shipped... 98,580,000 96,700,000 162,520,000 160,280,000 220,320,000 214,400,000 44,000,000 34,200,000 40,000,000 30,000,000 11,000,000 1,000,000 12,400,000 2,400,000 10,000,000 24,000,000 622,820,000 538,980,000 On hand. 1,880,000 2,240,000 5,920,000 9,800,000 10,000,000 10,000,000 10,000,000 10,000,000 24,000,000 83,840,000 Cleveland: Printed Shipped... 62,920,000 61,360,000 114,040,000 108,760,000 209,360,000 204,080,000 84,600,000 83,200,000 23,600,000 23,600,000 5,000,000 3,000,000 5,200,000 3,200,000 4,000,000 2,000,000 8,000,000 4,000,000 516,720,000 493,200,000 2,000,000 2,000,000 2,000,000 4,000,000 23,520,000 On hand. 1,560,000 5,280,000 5,280,000 1,400,000 Richmond: Printed Shipped... 62,060,000 58,060,000 92,880,000 86,040,000 114,400,000 103,760,000 35,600,000 28,400,000 26,400,000 19,600,000 11,600,000 1,600,000 12,400,000 2,400,000 8,000,000 2,000,000 8,000,000 4,000,000 371,340,000 305,860,000 On hand. 4,000,000 6,840,000 10,640,000 7,200,000 6,800,000 10,000,000 10,000,000 6,000,000 4,000,000 65,480,000 Atlanta: Printed.... Shipped... 70,640,000 65,460,000 117,880,000 103,040,000 152,000,000 118,480,000 16,200,000 12,800,000 18,000,000 14,800,000 2,200,000 200,000 2,800,000 800,000 2,000,000 4,000,000 385, 720,000 315,580,000 On hand. 5,180,000 14,840,000 33,520,000 3,400,000 3,200,000 2,000,000 2,000,000 2,000,000 4,000,000 70,140,000 oo oo o to H H H ft w o Chicago: Printed Shipped - -. On hand St. Louis: Printed Shipped On hand Minneapolis: Printed Shipped On hand Kansas City: Printed Shipped 162,940,000 155,360,000 298,920,000 279,720,000 364,560,000 327,680,000 68,800,000 56,800,000 42,800,000 29,200,000 10,200,000 2,200,000 13,200,000 6,000,000 10,000,000 2,000,000 8,000,000 979,421,000 858,960,000 7,580,000 19,200,000 36,880,000 12,000,000 13,600,000 8,000,000 7,200,000 8,000,000 8,000,000 120,460,000 75,540,000 73,880,000 105,400,000 102,720,000 124,480,000 108,160,000 17,400,000 16,000,000 11,200,000 10,400,000 5,000,000 1,000,000 6,000,000 2,000,000 4,000,000 2,000,000 8,000,000 4,000,000 357,020,000 320,160,000 1,660,000 2,680,000 16,320,000 1,400,000 800,000 4,000,000 4,000,000 2,000,000 4,000,000 36,860,000 59,560,000 50,040,000 66,560,000 57,360,000 59,040,000 48,080,000 4,400,000 2,600,000 5,600,000 4,400,000 1,400,000 400,000 6,800,000 1,200,000 203,360,000 164,080,000 9,520,000 9,200,000 10,960,000 1,800,000 1,200,000 1,000,000 5,600,000 39,280,000 86,800,000 67,740,000 79,680,000 66,960,000 86,080,000 68,720,000 10,600,000 7,800,000 10,400,000 8,000,000 4,000,000 600,000 4,000,000 1,200,000 281,500,000 221,020,000 60,540,000 On hand Dallas: Printed Shipped 19,060,000 12,720,000 17,360,000 2,800,000 2,400,000 3,400,000 2,800,000 47,380,000 37,680,000 67,680,000 49,920,000 70,960,000 54,720,000 8,400,000 6,000,000 7,600,000 4,800,000 3,000,000 400,000 6,000,000 800,000 6,000,000 12,000,000 229,020,000 154,320,000 On hand 9,700,000 17,760,000 16,240,000 2,400,000 2,800,000 2,600,000 5,200,000 6,000,000 12,000,000 74,700,000 San Francisco: Printed Shipped 82,280,000 82,140,000 99,520,000 96,720,000 189,600,000 184,320,000 28,400,000 28,400,000 41,200,000 41,200,000 6,200,000 3,200,000 9,200,000 9,200,000 8,000,000 6,000,000 12,000,000 8,000,000 476,400,000 459,180,000 On hand 140,000 2,800,000 5,280,000 2,000,000 4,000,000 17,220,000 1,342,240,000 2,108,600,000 1,279,120,000 2,011,080,000 2,281,760,000 2,079,840,000 484,000,000 422,200,000 468,400,000 388,000,000 102,600,000 35,000,000 188,000,000 82,400,000 90,000,000 24,000,000 152,000,000 40,000,000 7,217,600,000 6,361,640,000 97,520,000 201,920,000 61,800,000 80,400,000 67,600,000 105,600,000 66,000,000 112,000,000 855,960,000 3,000,000 X K w I—I H W VAULT BALANCE Total printed Total shipped . . . Total on hand 63,120,000 CD No, 6,—Federal Reserve notes, by denominations, on hand Dec. 31, 1918, received, issued to the banks, and returned to the comptroller for during calendar year 1919, and on hand Dec. 81, 1919, as reported by Federal Reserve agents. destruction CO o IN HANDS OF FEDERAL RESERVE AGENTS DEC. 31, 1918. Federal Reserve agent at— Boston New York ... Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Fives. $3,640,000 15,000,000 2,760,000 1 320 000 -. . . . . Total 8,070,000 5,840,000 2,590,000 1,880,000 1,120,000 4,715,000 46,935,000 Tens. Hundreds. Five hundreds. Five thousands. Ten thousands. Twenties. Fifties. $3,160,000 28,000,000 2,200,000 3,640,000 1,000,000 15,061,000 10,680,000 $4,240,000 16,800,000 5,680,000 4,080,000 720,000 10,220,000 20,320,000 $3,500,000 40,000,000 4,000,000 5,100,000 2,900,000 6,492,000 4,800,000 2,360,000 1,880,000 4,860,000 1,840,000 2,000,000 4,020,000 $3,300,000 10,000,000 3,000,000 8,200,000 1,600,000 4,872,000 4,600,000 400,000 90,000 1,540,000 1,605,000 280,000 980,000 2,430,000 $17,840,000 109,800,000 17,640,000 22,340,000 G, 220,000 44,715,000 46,240,000 2,990,000 6,450,000 7,520,000 17,630,000 72,841,000 69,920,000 39,207,000 70,482,000 299,385,000 Thousands. Total. $44,860,000 159,400,000 37,960,000 23,320,000 23,600,000 19,480,000 62,320,000 33,860,000 $97,520,000 241,200,000 58,160,000 37,080,000 32,840,000 31,920,000 101,760,000 41,440,000 $64,560,000 182,720,000 67,040,000 59,280,000 35,440,000 44,960,000 94,880,000 42,320,000 $8,600,000 42,600,000 9,800,000 23,800,000 6,200,000 1,600,000 17,600,000 7,200,000 $3,200,000 25,200,000 10,000,000 4,800,000 3,200,000 2,800,000 800,000 4,400,000 $2,400,000 18,800,000 1,000,000 3,000,000 1,600,000 200,000 2,200,000 1,000,000 W I RECEIVED FROM COMPTROLLER OF THE CURRENCY. Boston New York.. Philadelphia Cleveland... Richmond.. Atlanta Chicago St. Louis.... o w H $6,400,000 38,400,000 2,400,000 3,200,000 2,400,000 800,000 6,000,000 2,000,000 $2,000,000 6,000,000 j 2,000,000 $4,000,000 12,000,000 2,000,000 43 000,000 4,000,000 2,000,000 2,000,000 A, 000,000 $233,540; 000 726,320,000 186,360,000 160,480,000 111,280,000 101,760,000 287,560,000 138,220,000 w o % Minneapolis.., Kansas City... Dallas San Francisco. 12,040,000 17,560,000 10,500,000 36,120,000 6,840,000 17,240,000 13,040,000 36,840,000 6,320,000 10,160,000 15,040,000 60,240,000 400,000 400,000 3,200,000 7,200,000 400,000 400,000 800,000 6,800,000 400,000 600,000 400,000 2,200,000 1,200,000 1,200,000 800,000 5,600,000 2,000,000 Total.... 481,020,000 715,880,000 682,960,000 128,600,000 62,800,000 33,800,000 70,400,000 18,000,000 4,000,000 27,600,000 47,560,000 43,780,000 161,000,000 32,000,000 2,225,460,000 RETURNED BY FEDERAL RESERVE BANKS. m x Boston New Y o r k . . . . Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. $33, 025,750 146,830,510 36, 740,190 21, 973,015 31, 265,850 29,392,185 56, 046,620 23,482,580 14,245,575 21, 514,145 7,594,685 30, 722,120 $62,307,560 244,452,730 59,712,110 37,994,900 47,689,000 46,435,190 86,993,270 33,594,220 22,023,410 21,484,190 14,113,610 32,074,990 $35,477,900 172,511,340 82,653,680 64,683,480 55,746,600 59,396,640 83,465,940 33,776,320 13,033,720 21,949,540 14,216,220 53,304,640 $4,969,550 35,223,200 6,444,800 18,955,150 13,703,900 5,116,450 10,351,150 4,773,600 460,900 1,622,200 624,300 5,513,250 $3,922,100 30,649,100 4,026,300 2,652,100 10,206,500 5,720,000 2,888,300 2,350,700 505,200 1,087,500 941,200 7,609,400 $10,500 384,000 4,000 5,500 606,500 200,000 16,500 102,500 Total... 452,833,225 708,875,180 690,216,020 107,758,450 72,558,400 3,000 1,000 303,500 $55,000 2,319,000 . 54,000 19,000 1,302,000 850,000 37,000 146,000 3,000 1,000 90,000 711,000 1,637,000 5,587,000 $50,000 $139,768,360 632,419,880 189,635,080 146,283,145 162,070,350 147,110,465 239,798,780 98,425,920 50,271,805 67,661,575 37,581,015 135,543,900 $500,000 1,050,000 100,000 100,000 1,805,000 3,500,000 2,405,000 4,700,000 2,046,570,275 33 W w p j o 02 CO N o . 6.—Federal Reserve notes, by denominations, on hand Dec. 31, 1918, received, issued to the banks, and returned to the comptroller for during calendar year 1919, and on hand Dec. SI, 1919, as reported by Federal Reserve agents—Continued. ISSUED TO FEDERAL RESERVE BANKS. Federal Reserve agent at— Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City.... Dallas San Francisco. Total.. Tens. I Twenties. Fifties. $44,500,000 167,400,000 37,010,000 23,425,000 33,185,000 36,150,000 67,640,000 35,695,000 14,540,000 18,580,000 11,400,000 38,140,000 $91,920,000 271,200,000 58,880,000 38,710,000 49,330,000 57,736,000 110,920,000 39,890,000 11,820,000 20,720,000 17,435,000 39,000,000 $63,680,000 189,520,000 75,970,000 64,680,000 55,130,000 74,340,000 112,560,000 44,500,000 11,630,000 15,760,000 19,320,000 68,940,000 $11,400,000 46,400,000 9,600,000 27,600,000 11,820,000 6,098,000 19,800,000 7,650,000 350,000 990,000 4,080,000 527,665,000 807,561,000 796,030,000 PTundreds. Five hundreds. Thousands. $700,000 13,800,000 600,000 800,000 702,500 210,000 2,200,000 500,000 230,000 300,000 215,000 9,800,000 $6,600,000 28,400,000 11,600,000 6,850,000 8,390,000 7,839,000 3,200,000 3,900,000 420,000 1,050,000 2,890,000 11,500,000 2,500,000 $5,300,000 28,400,000 2,000,000 1,000,000 2,500,000 1,225,000 6,000,000 1,340,000 1,000,000 500,000 390,000 6,300,000 155,588,000 92,639,000 22,757,500 55,955,000 Five thousands. Ten thousands. $400,000 2,000,000 $1,000,000 200,000 550,000 300,000 1,170,000 2,000,000 200,000 350,000 3,650,000 6,500,000 9,000,000 6,000,000 destruction Total. $225,500,000 753,120,000 195,660,000 163,565,000 162,777,500 183,598,000 324,320,000 134,025,000 39,990,000 57,900,000 55,730,000 186,330,000 $33,025,750 136,830,510 35,990,190 21,688,015 20,020,850 15,212,185 56,046,620 22,317,580 12,405,575 20,894,145 $62,308,560 238,452,730 56,712,110 36,364,900 28,969,000 23,525,190 86,993,270 30,384,220 15,073,410 19,204,190 $35,475,900 162,511,340 73,402,680 61,923,480 32,776,600 24,436,640 83,305,940 28,176,320 8,603,720 17,629,540 $3,271,050 31,423,200 6,445,800 17,755,150 7,803,900 1,195,450 10,351,150 2,373,600 320,900 682,200 $2,821,600 27,449,100 4,026,300 2,302,100 2,776,500 703,000 2,888,300 850,700 365,200 637,500 $10,500 384,000 4,000 5,500 6,500 $55,000 2,319,000 54,000 19,000 52,000 16,500 2,500 37,000 6,000 3,000 1,000 3,000 o 15,320,000 2,482,515,500 RETURNED TO COMPTROLLER FOR DESTRUCTION. Boston New York... Philadelphia. Cleveland Richmond... Atlanta Chicago St. Louis Minneapolis.. Kansas City.. CO $50,000 $136,968,360 599,419,880 176,635,080 140,058,145 92,405,350 65,072,465 239,638,780 84,110,920 36,771,805 59,051,575 I 1w o Dallas San Francisco Total 6,639,685 28,702,120 ».- 409,773,225 9,948,610 ! 29,914,990 j 637,851,180 9,596,220 44,604,640 534,300 2,913,250 251,200 2,909,400 1,000 3,500 11,000 j 582,443,020 85,069,950 47,980,900 437,000 2,557,000 i 26,971,015 109,063,900 $5,000 J. 5,000 I 50,000 1,766,167,275 4,000,000 $3,000,000 6,000,000 1,800,000 1,950,000 3,700,000 3,880,000 1,900,000 3,750,000 150,000 1,000,000 $28,680,000 116,000,000 21,340,000 25,480,000 24,387,500 44,915,000 9,640,000 21,500,000 7,560,000 5,790,000 16,290,000 1,150,000 21,330,000 I 322,732,500 IN HANDS OF FEDERAL RESERVE AGENT DEC. 31,1919. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City... Dallas San Francisco. Total. $4,000,000 17,000,000 4,460,000 1,500,000 1,660,000 5,580,000 520,000 1,920,000 1,220,000 720,000 4,770,000 43,350,000 $8,760,000 ; 4,000,000 | 4,480,000 3,640,000 ; 3,230,000 j 12,155,000 1,520,000 4,760,000 4,330,000 680,000 4,630,000 52,185.000 $5,120,000 20,000,000 6,000,000 1,440,000 4,000,000 15,800,000 2,800,000 3,420,000 960,000 720,000 4,360,000 64,620,000 $2,200, 10,000, 3,200, 5,600, 1,880, 4,295, 2,400, 2,350, 280 1,890 815 34,910,000 SI, 200,000 40,000,000 2,400,000 3,400,000 5,140,000 6,470,000 2,400,000 2,000,000 400,000 780,000 1,030,000 65,220,000 $1,700,000 I 5,000,000 400,000 2,200,000 1,497,500 190,000 600,000 170,000 300,000 185,000 12,242,500 i %1,100,000 10,000,000 400,000 2,200,000 1,150,000 $1, 600,000 425,000 j . 800,000 200,000 700,000 500,000 17,475,000 11,400,000 X i RECAPITULATION. On hand Dec. 31, 191S Received from Comptroller Returned by bank Total Issued to banks Returned for destruction On hand Dec. 31, 1919 Total $46,935,000 481,020,000 452,833,225 172,841,000 715,880,000 708, 876,180 $299,385,000 2,225,460,000 2,046,570,275 $69,920,000 682,960,000 690,213,020 $39,207,000 128,600,000 107,760,950 $70,482,000 62,800,000 72,557,900 $33,800,000 1,637,000 $70,400,000 5,587,000 $18,000,000 2,405,000 $32,000,000 4,700,000 980,788,225 1,497,597,180 1 443 093 020 275,567,950 205,839,900 35,437,000 75,987,000 20,405,000 36,700,000 4,571,415,275 527,665,000 409,773,225 43,350,000 796,030,000 582,443,020 64,620,000 155,588,000 85,069,950 34,910,000 92,639,000 47,980,900 65,220,000 22,757,500 437,000 12,242,500 55,955,000 2,557,000 17,475,000 9,000,000 5,000 11,400,000 15,320,000 50,000 21,330,000 2,482,515,500 1,766,167,275 322,732,500 980,788,225 1,497,597,180 1,443,093,020 275,567,950 205,839,900 35,437,000 75,987,000 20,405,000 36,700,000 4,571,415,275 807,561,000 637,851,180 52,185,000 I CO CO No. 7.—Federal Reserve notes issued and redeemed by each Federal Reserve Bank, by months, during the calendar year 1919. February. January. Federal Reserve Bank. Outstanding Jan. 1, 1919. Issued. Redeemed. March. Redeemed. Issued. Issued. April. Redeemed. Issued. Redeemed. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco... S168,986,330 819,015,835 241,870,745 266,519,915 150,997, 770 123,620,285 450,938,010 129,119,875 98,724,410 120,317,330 60,495,080 229,238,335 $2,300,000 10,100,000 1,250,000 2,000,000 7,720,000 5, 715,000 4,240,000 2,600,000 800,000 2,000,000 2,185,000 1,600,000 $8,722,305 61,445,365 25,451,420 13,957,930 17,251,495 14,376,845 11,011,320 10,309,150 7,694,160 9,420,725 5,732,050 13,560,930 $10,960,000 45,300,000 18,290,000 3,795,000 4,260,000 9,550,000 9, 880,000 5,090,000 1,350,000 1,100,000 360,000 2,600,000 $10,302,940 40,605,375 13,065,590 9,417,105 12,864,040 9,166,860 17,322,335 5,135,170 3,610,765 5,039,195 4,603,740 6,214,160 $17,500,000 84,900,000 5,900,000 4,210,000 10,255,000 13, 965,000 21,560,000 7,425,000 2,310,000 1,700,000 1,775,000 9,700,000 $9,122,760 66,156,010 14,302,435 10,106, 855 12,119,920 10, 810,365 13, 835,635 5, 969,685 3,689,155 5,328,485 3,253,660 9,398, 775 $21,500,000 77,600,000 14,240,000 7,920,000 11,450,000 11,115,000 21,800,000 4,160,000 2,450,000 2,350,000 740,000 18,680,000 $10,315 730 52,544 400 14,386 250 11,505, 140 14,138,030 12,536,030 15,209,960 8,334,240 3,548, 740 4,288,490 2,857,850 14,637,860 Total, 1919. Total, 1918. 2,859,843,920 1,350,624,225 • 42,510,000 56,015,000 198,933,695 39,780, 780 112,535,000 104,140,000 137,347,275 28,910,110 181,200,000 156,385,000 164,093,740 34,503,930 194,005,000 122,985,000 164,302,720 35,986, 115 May. June. July. August. o w H O September. Federal Reserve Bank. Boston New York.. Philadelphia Cleveland... Richmond.. Atlanta Chicago Issued. Redeemed. Issued. Redeemed. Issued. $7, 700,000 53,400,000 20,240,000 7,680,000 3,272,500 14,140,000 20,400,000 $12,655,235 51,905,000 18,793,660 12,283,895 12,200,375 14,250,505 19,339,680 $16,500,000 61,800,000 17,200,000 5,900,000 5,670,000 13,806,000 25,720,000 $12,343,870 64,229,900 19,743,645 13,876,080 12,093,170 11,143,665 25,153,205 $19,820,000 63,000,000 17,800,000 14,700,000 6,440,000 10,015,000 24,520,000 Redeemed. Issued. Redeemed. $11,235, 770 $28, 700,000 $14, 732,285 63,397, 700 67,140,000 51,603,700 15,389,785 21,900,000 17,157,325 12,562,065 30,220,000 15,301,635 9,818, 700 16,910,000 16,219,400 8,802,500 7, 797,000 12,007,245 21,386,550 33,360,000 26,710,210 Issued. Redeemed. 27,400,0000 63,340,000 19,400,000 23,160,000 24,010,000 20, 754,000 39,240,000 $10,423,930 50,113,900 14,884,230 11,578,795 11,753,615 10,268,070 22,160,650 w o St. Louis Minneapolis Kansas City Dallas.. San Francisco Total, 1919 8,270,000 | 10,098,500 | 6,240,000 6, 747,585 3,800,000! 5,709,835 2,900,000 4,084,510 3,250,000 I 1,975,000 I 9,240,000 I 5,022,965 3,294,510 11,510, 785 3,080,000 3,490,000 j 10,080,000 j 5,008,940 2,556,160 9,564,630 153,367,500 j 177,064,945 135,430,000 49,850, 265 Total, 1918 172,386,000 161,970,000 186,545,360 50,937,580 12,810,000 1,480,000 3,870,000 2,715,000 19,460,000 8,066,045 3,838, 815 4,570,940 2,631,495 17,065,675 12,800,000 2,050,000 5,940,000 3,815,000 17,360,000 196,630,000 178,766,040 40,975,415 247,992,000 247, 750,000 216,540,000 10,356,903 20,000,000 8,080,000 3,194,590 9,920,000 | 5,839,240 8,663,425 4,050,060 6,683,975 2,765,810 j 9,385,000 I 2, 735,575 12,676,660 j 19, 800,000 9, 734,875 188,571, 730 I 284,489,000 163,044,400 41,778,950 45,056,320 | 341,380,000 X October. November. December. Total. Outstanding Dec. 31, 1919. Federal Reserve Bank. Issued. Redeemed. Issued. Redeemed. Issued. Redeemed. Issued. Redeemed. 3 s (—t Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas C i t y . . . Dallas San Francisco. •115,900,000 44,480,000 22,300,000 13,120,000 34,110,000 32,084,000 37,600,000 22,900,000 5,050,000 o, 430,000 9,525.000 21,260,000 $15,122,195 66,692,700 191,286,590 28,986,905 Total, 1919. i 263, 759,000 Total, 1018 ! 209,285,000 14, 889,320 13,700,225 13,182, 245 13,243, 785 25,923,785 7,481,860 3,870,295 5, 487,190 1,989,540 9, 703,45.0 $22,800,000 60,920,000 12,500,000 19,960,000 16,120,000 20,867,000 30,440,000 18,530,000 3,570,000 11,240,000 11,065,000 28,150,000 $14, 152,220 36, 452,800 10, 997,135 11, 731,370 12, 795,005 13, 515,235 21, 858,230 287,985 723,150 160,310 670,815 127,255 24,640,000 30,900,000 22,560,000 23,790,000 55,560,000 13,200,000 6,150,000 8,020,000 8,700,000 28,400,000 256,162,000 151,471,510 48,982,635 377, 480,000 223,945,000 119,870,000 $34,420,000 S10,639,120 121,140,000 27,273,030 10,574,285 10,262,050 17,634,355 16,989,360 19,887,220 9,975,345 3,257, 730 4, 811,120 2,489,810 11,348,845 145,142,270 140, 726,300 S225,500,000 753,120,000 195,660,000 163,565,000 162, 777,500 183,598,000 324,320,000 134,025,000 39,990,000 57,900,000 55,730,000 186,330,000 2,482,515,500 2,095,695,000 $139,768, 360 632,419, 880 189,635, 080 146, 283, 145 162,070, 350 147,110, 465 239, 798, 780 I 98,425, 920 I 50,271, 67,661, 37,581, 135,543, 2,046,570,275 586,475,305 $254, 717,970 939,715,955 247, 895,665 283,801,770 151, 704,920 160,107,820 535,459,230 164, 718,955 88,442,605 110,555,755 78,644,065 280,024,435 H W o 3,295, 789,145 2,859,843,920 CO N o . 8.—Federal Reserve notes issued and redeemed, byldenominationsy $5 $10 $20 $50 $100.... $500.... $1,000.. $5,000.. $10,000. Total. during the calendar year 1919. Outstanding | J a n . 1, 1919. | $440,840,850 ! 870,561,950 j 1,114,942,220 i 210,444,900 | 215,054,000 • 8,000,000 | 2, 859, 843,920 J Issued. Redeemed. a Outstanding Dec. 31,1919. $527,665,000 j $452, 832,225 $515,673,625 807,561,000 708; 872,180 690; 220,020 107, 758,450 72; 558,400 1, 637,000 5, 587,000 405,000 700,000 969,250,770 1,220,752,200 258,274,450 235,134,600 796,030,000 155,588,000 92,639,000 22,757,500 55,955,000 9,000,000 15,320,000 2,482,515,500 2,046,570,275 21,120,500 58,368,000 o 10,620,000 H O 3,295,789,145 H 6,595,000 W CO W O EXHIBIT B FEDERAL RESERVE NOTES. 97 Bfo. 9.—Total cost of Federal Reserve notes, including paper, preparing plates, printing, but exclusive of shipping charges, for the calendar year 1919. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total and $249, 740. 82 560, 529. 57 181,403.08 117,477.71 103,171.11 129,998.75 340,059. 72 147, 782.40 52,778.14 105,341. 50 75,430. 60 136,133. 97 2,199, 847. 37 N o , 10.—Federal Reserve agents' accounts at close of business Dec. 31, 1919. Boston. New York. Philadelphia. 00 Cleveland. Richmond. Atlanta. $24,387,500.00 $44,915,000.00 *3 151,704,920.00 160,107,820. 00 ^ 2,500,000.00 fcd RESOUBCES. Federal Reserve notes on hand Federal Reserve notes outstanding Collateral security for Federal Reserve notes outstanding: Gold and gold certificates Gold redemption fund Gold settlement fund—Federal Reserve Board Eligible paperAmount required Excess amount held Total. $28,680,000.00 254,717,970.00 $116,000,000.00 939,715,955.00 $21,340,000.00 247,895,665.00 $25,480,000.00 283,801,770.00 13,510,970.00 60,000,000.00 183,740,280.00 13,015,935. 00 110,000,000.00 14,558,905.00 74,389,260.00 37,025,000.00 16,769.225. 00 75,000,000.00 1,998,970.00 38,000,000.00 3,003,220.00 § 58,000,000.00 g 632,959,740.00 358,584,450.09 158,947,500.00 111,705,950.00 3,392,277.05 o 6,244,517.51 155,007,545.00 55,726,284.97 98,604,600.00 25,480,726.26 12,740,067. 98 ^ 563,596,666.26 2,354,016,360.09 523,375,847.51 648,809,824.97 331,189,617.05 377,870,707.98 476,300,000. 00 192,902,030.00 2,001,000,000.00 945,284,045. 00 510,780,000.00 241,544,335. 00 484,320,000. 00 175,038,230.00 305,860,000.00 129,767,580.00 298,000,000.00 92,977,180. 00 283,397,970. 00 1,055,715,955.00 269,235,665.00 309,281,770. 00 176,092,420. 00 205,022,820. 00 181,207,000.00 LIABILITIES. Federal Reserve notes received from comptroller—gross Less amounts returned for destruction Net amount of Federal Reserve notes received from Comptroller of the Currency Collateral received from Federal Reserve Bank: Gold Eligible paper Total. 73,510,970.00 306,756,215.00 39,998,970.00 63,503,220.00 991,544,190.09 88,948,165.00 165,192,017.51 128,794,225.00 206,687,726.26 210,733,829.97 115,098,227.05 109,344,667.98 563,598,666.26 2,354,016,360.09 523,375,847.51 648,809,824.97 331,189,617.05 377,870,707.98 O Minneapolis. Kansas City. $9,640,000.00 $21,500,000.00 535,459,230. 00 164,718,955. 00 $7,560,000.00 88,442,605.00 $5,790,000. 00 $16,290,000. 00 SI, 150,000.00 110,555,755.00 78,644,065.00 280,024,435.00 4,000,000. 00 3,694,115.00 53,930,600.00 13,052,000.00 2,994,605.00 19,800,000.00 2,048,970.00 37,360,000.00 8,831,000.00 4,229,580.00 14,484,000.00 18,831,935.00 110,218,500.00 249,148,280.00 103,116,160.00 886,326,860.00 W 291,855,000. 00 103,094,240.00 87,480,182.28 7,263,830.82 52,596,000.00 21,564,777.53 71,146,785.00 40,873,559.86 51,099,485.00 13,012,559.59 150,974,000. 00 12,924,308.13 2,057,197,845.00 645,287,542. 07 W H W 1,168,038,642.28 358,201,740.82 206,009,987.53 267,775,069. 86 186,590,689.59 574,123,178.13 7,559,598,332.07 143,700,000. 00 409,920,000. 00 48,765,935. 00 128,745,565. 00 6,119,540,000. 00 2,501,018,355.00 ..Chicago. St. Louis. Dallas. San Francisco. Total. RESOURCES. Federal Reserve notes on hand Federal Reserve notes outstanding Collateral security for Federal Reserve notes outstanding: Gold and gold certificates Gold redemption fund Gold settlement fund—Federal Reserve Board Eligible p a p e r Amount required Excess amount held Total. Federal Reserve notes received from comptroller—gross Less amounts returned for destruction Net amount of Federal Reserve notes received from Comptroller of the Currency Collateral received from Federal Reserve Bank: Gold Eligible paper Total- 8,459,730.00 235,144,500.00 14,720,000.00 299,600,000. 00 152,080,000. 00 203,260,000.00 19,620,770. 00 113,381,045.00 56,077,395.00 86,914,245.00 $322,732,500.00 3,295,789,145.00 186,218,955. 00 96,002,605.00 116,345,755.00 94,934,065.00 281,174,435. 00 3,618,521,645.00 243,604,230. 00 61,624,715.00 379,335,182.28 110,358,070.82 35,846,605.00 74,160,777.53 39,408,970. 00 112,020,344.86 27,544,580.00 64,112,044.59 129,050,435. 00 163,898,308.13 1,238,591,300.00 2,702,485,387.07 1,168,038,642.28 358,201,740.82 206,009,987.53 267,775,069. 86 186,590,689.59 574,123,178.13 7,559,598,332.07 545,099,230.00 o H m CO CO No. 11.—Amounts of Federal Reserve notes received from and returned to other Federal Reserve Banks for redemption or credit during the calendar year 1919 and totals for 1918 and 1917. Boston. Received. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Boston New York... Philadelphia Cleveland... Richmond.. $2,439,250 18,361,150 3,617,500 3,434,950 8,699,750 Cleveland. Returned Received. Returned Received. $59,860,250 $45,236,150 $59,738,000 4,247,000 6,872,600 59,310,500 2,325,250 4,427,450 22,815,150 2,237,750 4,392,150 22,394,000 1,607,830 2,470,650 12,802,160 3,681,000 6,369,450 28,768,500 1,073,035 1,219,550 9,962,820 420,000 1,378,050 3,414,000 522,400 1,621,300 4,883,200 509,100 3,178,600 306,605 1,062,445 1,294,600 8,018,610 $33,280,800 $4,370,700 47,221,750 $3,382,000 59,800,500 54,441,950 24,882,550 24,859,000 14,603,700 29,202,250 5,983,050 4,091,350 5,489,350 2,522,950 11,028,250 $4,528,700 35,792,100 11,133,500 10,451,000 7,180,750 1,874,200 3,906,900 1,123,805 395,000 571,100 392,800 811,880 8,798,000 7,897,500 3,510,500 5,633,000 1,477,000 1,068,500 1,452,500 512,500 993,050 90,292,900 235,407,790 210,385,200 37,931,700 118,050,470 118,629,200 12,012,900 29,997,052 24,799,975 78,299,885 39,531,305 8,066,790 Atlanta. Received. Returned. Philadelphia. Received. 62,719,465 21,660,305 4,278,835 Total: 1919.. 1918.. 1917. New York. Returned. $1,584,360 14,014,420 2,770,980 4,948,010 6,271,540 Chicago. Received. $6,311,850 40,400,150 6,951,510 19,259,550 8,873,310 Returned. $3,908,000 28,930,000 6,150,000 19,071,000 5,490,500 St. Louis. Received. $1,207,350 7,747,100 1,526,500 1,993,200 2,582,000 Returned. $1,098,565 10,234,335 2,037,755 6,237,965 2,705,855 Richmond. Returned. Received. Returned. $1,655,100 $4,367,850 21,783,650 31,924,350 9,567,500 9,899,870 6,876,600 9,771,000 5,728,850 4,605,380 3,060,400 6,217,370 19,028,500 16,439,300 5,425,000 6,225,265 1,703,850 2,662,005 1,099,000 1,515,550 524,000 1,716,20b 1,762,250 1,001,200 894,700 480,600 575,250 1,881,210 866,850 1,332,320 $2,250,250 22,233,259 13,156,250 9,627,500 70,805,815 31,113,635 6,450,175 72,911,000 26,603,050 2,080,430 94,525,050 96,675,555 62,354,660 40,366,135 14,960,902 5,175,740 64,563,900 21,249,450 2,534,070 Minneapolis. Received. $1,405,650 5,693,250 1,124,500 1,804,550 2,069,250 Returned. $451,000 3,376,000 556,500 1,104,500 524,000 O o 8,539,250 8,955,500 2,597,000 2,027,750 2,146,000 757,500 620,750 d o w H O w Kansas City. Received. $1,618,950 7,450,700 1,504,000 2,080,850 2,148,500 Returned. $522,400 4,908,700 858,200 1,721,200 1,019,500 w o Atlanta Chicago St. Louis Minneapolis Kansas C i t y . . . Dallas San Francisco.. Total: 1919. 1918. 1917. 6,792,795 6,340,000 | 6,145,500 9,271,360 571, 500 1,677,400 2,820,850 1,357,935 6,975,840 9,506,250 1,063,500 2,381,450 4,139,000 965,310 25,007,785 15,834,500 10,335,250 2,310,850 7,900,180 58,397,145 21,107,515 6,210,710 54,620,660 20,438,925 4,650,150 149,977,730 49,708,155 5,129,265 Dallas. Received. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco.. Total: 1919. 1918. 1917. ! Returned. $494,200 3,581,350 548,000 606,700 734,750 3,857,150 3,229,500 5,458,235 339,000 3,945,150 $356,800 3,092,900 509,000 811,300 595,700 2,824,450 2,112,950 2,738,850 415,350 2,973,800 1,971,060 1,742,500 24,765,095 11,083,945 5,765,280 18,173,600 11,855,210 3,506,950 Received. | 550,000 15,714,000 950,000 1,871,705 9,093,880 5,495,840 2,157,445 2,402, 392, 3,377, 2,510,000 378,500 3,589,000 3,208; 5,345, 4,015,150 4,201,550 75,559,285 37,557,760 7,979,770 39,606, 14,296, 5,537, 29,703,500 9,115,300 1,351,000 51,607, 33,604, 7,783, 39,801,900 6,320,605 1,118,755 9,518,855 25,107,085 13,137,000 i 18,418,000 | 14,621,500 | 3,270,000 | 10,269,500 i 953,500 8,200,400 2,805,705 1,550,095 129,605,500 1 51,456,600 j 15,268,500! 50,469,925 15,019,535 3,344,960 San Francisco. Returned. [1,617,500 10,335,250 8,200,400 2,402,050 1,017, 18,446, 1,873, 8,802,075 | 13,102,000 | Total, 1919. Total, 1918. fi§[2,040, 14,637, 9,053, 2,518, Total, 1917. Received. | Returned. Received. Returned. Received. $38,274,400 112,964,740 64,559,000 20,926,210 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 $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 4,456,440 411,124,010 408,607,145 92,095,617 92,109,482 $1,277,800 14,769,350 1,044,500 1,044,950 635,250 940,855 10,172,000 2,128,495 3,921,000 4,175,550 2,280,850 $1,075,745 8,018,955 1,280,495 1,866,410 j 1,356,250 j 1,346,100 7,783,965 1,529,745 3,592,310 5,389,250 2,027,590 $87,882,550 j $49,565,020 258,177,400 j 236,130,710 100,907,380 ! 98,201,230 72,692,750 j 83,495,885 67,326,310 | 60,840,845 50,558,270 ! 54,381,405 126,542,400 j 134,628,590 73,840,035 j 49,042,695 29,989,500 j 37,844,115 39,429,900 j 49,441,280 19,167,660 i 24,108,730 34,608,625 | 37,728,805 42,390,600 15,582,545 4,355,640 35,266,815 5,094,685 1,843,080 961,122,780 I 915,409,310 24,063,090 Returned. M W h-i W H W N o . 1%*—Federal Reserve bank notes, by denominations, Bank. Ones. Boston: Printed Issued On hand Now York: Printed Issued On hand Twos. Fives. Tens. Twenties. Fifties. Total. $18 380,000 17,096,000 $11 104 000 8,184,000 $2,200,000 2,180,000 $31 684,000 27,460,000 1,284,000 2,920,000 20,000 4,224,000 61,712,000 51,604,000 16,120,000 13,928,000 32,000,000 13,840,000 $2,000,000 1,440,000 114,832,000 80,812,000 13,108,000 2,192,000 18,160,000 560,000 34,020,000 26,032,000 25,940,000 6,056,000 5,856,000 8,320,000 7,000,000 440,000 $240,000 41,088,000 38,796,000 92,000 200,000 1,320,000 440,000 240,000 2,292,000 18 508 000 18,456,000 5 000;000 4,808,000 9,000,000 5,440,000 2,000,000 2,000,000 36,508,000 28,704,000 52,000 192,000 3,560,000 2,000,000 2,000,000 7,804,000 12,096,000 12,040,000 2,880,000 1,914,000 3,500,000 400,000 400,000 19,276,000 13,984,000 56,000 936,000 3,500,000 400,000 400,000 5,292,000 i w ."Philadelphia: Print or] Issued . . . . On hand Cleveland: Printed Issued On hand - Richmond: Printed Issued On hand printed, issued by the Comptroller of the Currency since organization of banks, and on hand Dec. 31, 1919. . w o > Atlanta: Printed Issued 14,780,000 14,488,000 2,336,000 2,112,000 4,640,000 2,240,000 480,000 360,000 480,000 160,000 400,000 23,116,000 19,360,000 On hand 292,000 224,000 2,400,000 120,000 320,000 400,000 3,756,000 Chicago: Printed. . Issued 32,516,000 32,456,000 9,080,000 8,064,000 16,600,000 7,820,000 3,800,000 2,760,000 1,600,000 1,600,000 On hand 60,000 1,016,000 8,780,000 1,040,000 14,300,000 13,744,000 3,640,000 2,736,000 5,000,000 4,980,000 1,000,000 1,000,000 On hand 556,000 904,000 20,000 Minneapolis: Printed-.. Issued 9,292 000 7,532,000 1 752 000 1,688,000 4,820,000 920,000 2 680 000 18,544,800 10,140,000 On hand 1,760,000 64,000 3,900,000 2,680,000 8,404,000 9,996,000 9,548,000 2,504,000 2,048,000 12,360,000 11,140,000 5,040,000 5,040,000 448,000 456,000 1,220,000 1 St. Louis: Printed Issued Kansas City: Printed Issued On hand 63,596,000 52,700,000 • 10,896,000 480,000 400,000 200,000 24,620,000 22,860,000 80,000 200,000 1,769,000 3,600,000 3,600,000 33,500,000 31,376,000 0 3 g I 2,t24,000 o CO No. 12,—Federal Reserve bank notes, by denominations, printed, issued by the Comptroller of the Currency since organization of banks, and on hand Dec. SI, 1919—Continued. Bank. Ones. Twos. Fives. Tens. $8,076,000 7,808,000 $2,168,000 1,416,000 $4,140,000 2,000,000 $2,400,000 1,960,000 $2,000,000 1,760,000 $18,784,000 14,944,000 On hand 268,000 752,000 2,140,000 440,000 240,000 3,840,000 San Francisco: Printed Issued 14 280 000 9,804,000 3 544,000 2,736,000 7,660,000 4,280,000 1,960 000 1 360 000 28 804 000 16,820,000 4,476,000 808,000 3,380,000 1,960,000 1,360,000 11,984,000 242,968,000 220,516,000 66,184,000 55,520,000 110,240,000 61,840,000 22,200,000 12,560,000 12,160,000 7,520,000 $600,000 454,352,000 357,956,000 22,452,000 10,664,000 48,400,000 9,640,000 4,640,000 600,000 96,396,000 Dallas: Printed .. Issued . . . . On hand Twenties. Fifties. Total. RECAPITULATION. Total printed Total issued Total on hand o N o . 13.— Total amount of Federal Reserve bank notes issued to Federal Reserve Banks, also amounts redeemed and outstanding, Dec. 31, 1919. Bank. Boston: Issued Redeemed Outstanding Tens. Twos. Fives. $17,096,000 3,751,472 $8,184,000 1,357,728 $2,180,000 1,002,800 $27,460,000 6,112,000 13,344,528 6,826,272 1,177,200 21,348,000 51,604,000 9,299,408 13,928,000 2,883,342 13,840,000 9,134,150 $1,440,000 755,100 80,812,000 22,072,000 42,304,592 11,044,658 4,705,850 684,900 58,740,000 25,940,000 3,878,228 5,856,000 659,622 7,000,000 4,010,150 38,796,000 8,518,000 22,061,772 5,196,378 2,989,850 30,248,000 18,456,000 1,921,370 4,808,000 466,630 5,440,000 3,181,000 28,704,000 5,569,000 16,534,630 4,341,370 2,259,000 23,135,000 12,040,000 1,532,510 1,944,000 211,490 10,507,490 1,732,510 Ones. Twenties. Fifties. Total. n w New York: Issued Redeemed . . . Outstanding 1-3 W Philadelphia: Issued Redeemed Outstanding Cleveland: Issued Redeemed Outstanding Richmond: Issued Redeemed Outstanding . . o 13,984,000 1,744,000 12,240,000 ======== O N o . 13. — Total amount of Federal Reserve bank notes issued to Federal Reserve Banks, also amounts redeemed and outstanding, Dec. 31, 1919—Con. Atlanta: Issued Redeemed Outstanding Chicago: Issued Redeemed Outstanding St. Louis: Issued Redeemed Outstanding Minneapolis: Issued Redeemed Outstanding Kansas City: Issued Redeemed. Ou standing . o Twos. Fives. $14,488,000 1,878,380 $2,112,000 261,620 $2,240,000 1,398,400 $360,000 $160,000 $19,360,000 3,538,400 12,609,620 1,850,380 841,600 360,000 160,000 15,821,600 32,456,000 4,504,290 8,064,000 875,710 7,820,000 3, 718,940 2,760,000 1,293,780 1,600,000 209,480 52,700,000 10,602,200 o w 27,951,710 7,188,290 4,101,060 1,466,220 1,390,520 42,097,800 o 13,744,000 2,327,848 2,736,000 570,302 4,980,000 2,422,650 1,000,000 519,200 400,000 22; 860,000 5,840,000 11,416,152 2,165,698 2,557,350 480,800 400,000 17,020,000 7,532,000 999,490 1,688,000 291,010 920,000 461,500 10,140,000 1,752,000 6,532,510 1,396,990 458,500 8,388,000 9,548,000 1,514,200 2,048,000 301,800 11,140,000 4,295,630 5,040,000 3,374,830 3,600,000 1,689,540 31,376,000 11,176,000 8,033,800 1,746,200 6,844,370 1,665,170 1,910,460 20,200,000 Ones. Bank. Tens. Twenties. Fifties. Total. H H W % d Dallas: Issued Redeemed 7,808,000 845,780 1,416,000 226,220 2,000,000 943,370 1,960,000 1,102,290 1,760.000 861,940 14,944,000 3,979,600 6,962,220 1,189,780 1,056,630 857,710 898,060 10,964,400 ^ S a n Francisco: to Issued I Redeemed 9,804,000 1,185,588 2,736,000 358,162 4,280,000 2,028,250 16,820,000 3,572,000 Jo 8,618,412 2,377,838 2,251,750 13,248,000 w 220,516,000 33,638,564 55,520,000 8,463,636 61,840,000 32,596,840 12,560,000 7,045,200 7,520,000 2,760,960 357,956,000 84,505,200 H W 186,877,436 47,056,364 29,243,160 5,514,800 4,759,040 273,450,800 go Outstanding 00 Outstanding RECAPITULATION. td Total issued Total redeemed 1 Total outstanding 1 M Exclusive of $4,328,000 received for destruction but not assorted by denominations. g m i No. 14.—Currency receipts and shipments of each Federal Reserve Bank, by months, during the calendar year 1919. Boston. New York. Philadelphia. Cleveland. Richmond. O 00 Atlanta. Month. Receipts. January February March April May June July August September. October November. December.. Total. | Shipments. Receipts. Shipments. Receipts. Shipments. Receipts. Shipments. Receipts. $47, 000,000 28, 280,000 33, 842,000 40, 293,000 47, 230,000 41, 987,000 47, 230,000 38, 688,000 39, 525,000 53, 832,000 36, 890,000 51, 056,000 $17,172,800 26,440,000j 26,579,000 27,674,000 17,761,625 31,536,000 37,408,000 38,885,000 37,980,000 41,164,000 39,076,000 60,664,000 $84,177,000 97,106,000 139,214,000 128,419,000 137,036,000 204,635,000 195,979,000 157,341,000 138,395,000 150,323,000 170,904,000 230,942,000 $47,191,945 32,030,619 28,172,620 39,959,215 40,681,745 37,295/ 38,394,924 33,425,219 36,468,581 37,026,356 30,064,643 43,763,463 $18,370,300i $47,863,327 25,761,1501 22,812,524 25,565,400! 24,350,299 27,421,050! 27,562,003 27,192,000j 32,194,425 26,538,600| 31,149,143 32,617,025! 36,798,066 36,287,240; 25,940,074 34,991,090| 28,415,754 41,637, OOOj 35,668,486 43,312,472 27,879,607 49,575,732 42,662,296 $16,629,866 26,415,774 22,259,917| 24,625,774! 19,313,854 21,191,348 29,193,882 40,329,582 40,159,578 34,733,156 36,242,091 51,028,532 $24,463,225 13,560,105 13,295,267 15,936,101 15,117,504 13,213,401 13,672,641 10,359,626 8,526,287 11,181,903 12,350,608 17,599,750 505,853,000 402,340,425 1,654,156,799 1,834,471,000 444,475,010 389,269,059 362,123,354 169,276,418 $173,022,018 90,711,068 94,967,955 121,521,898 137,293,989 142,255,416 156,222,645 135,234,802 139,255,009 157,523,946 127,139,007 179,009,046 383,296,004 Shipments. Receipts. $8,019,600 $22,046,434 10,004,996! 12,266,576 9,452,3471 16,273,899 17,522,876 8,408,193; 20,081,941 9,266,502; 16,758,229 9,603,695J 20,410,755 11,223,655J 17,350,369 14,505,900| 13,440,796 22,760,610 16,936,221 34,882,479 17,623,546 17,688,320 28,653,391 21,504,290 177,320,587 Shipments. $6,478,050 7,802,525 9,579,600 8,842,550 10,756,969 9,984,660 9,291,960 o 3 13,627,593 23,765,016 32,814,774 20,082,141 w 22,427,375 219,365,033 175,453,213 W O Chicago. Month. Receipts. January February March April May June July August September October November December Total Shipments. St. Louis. ShipReceipts. | ments. $70,026,304 $24,125, 274 $28, 205,817 29,798,731 36,352, 010! 16,233,817 34,679,881j 42,705, 348| 18, 621,616 I 44,528,303i 43,008, 564 24, 215,53lj I 56,342,781! 38,658; 687 22, 762,239 54,307, 036| 41,723; 003| 24, 163,503 64,181, 283i 49,328. 576J 26, 441,329 45,640, 36lJ 66,852; 899; 21,066,539 51,399; 991 49,093. 997| 23,372,992 64,344; 690 68,545; 1971 26,258,479 56,150, 431 62,872 ,099| 24, 654,489 702,077 90,922,,456 32, 741,115 76,702. Minneapolis. meX Kansas City. Receipts. $5,975,505 56, 992,573,11; 833,910 £11,693,026 9,434,9751 3, 144,993J 2, 885,020 7,682,068 ll,102,060| 3, 043,424! 3 ; 606,75; 7,960,790 8,489,470| 4,878,647 3 ; 269,227 8,288,225 12,065,088j 6,898,862 2} 341,980 10,997,385 11,307,7941 4,902,963J 3, 357,280 11,542,070 13,774,305j 6,,588,758! 2. 889,635 13,474,045 18,527,654 4,:306,731; 3. 773,300 10,843,909 23,827,274 361,536j 8. 226,550 11,764,731 32,870,931 854,718| 7; 010,146 14,123,099 29,541,084 257,845! 5. 949,470 10,270,138 28,531,008! 4,116,039i 7. 682,977 14,594,798 Shipments. Dallas. Receipts. San Francisco. Receipts. $2,314,563 $11,710,299 $2,104,108 $30,290,657 4,757,611 6,876,183 3,556,432 15,783,076 6,367,226 5,343,083 4,712,700 15,050,793 5,450,230 5,482,689 4,343,472j 14,303,083 6,188,085 4,975,116 4,581,155J 18,288,574 6,269,993 3,578,568 7,182,435! 16,747,331 9,172,601 5,952,929 6,505,384j 22,918,132 11,808,110 4,775,854 7,147,3911 15,067,142 13,483,933 4,933,440 14,096,3401 16. 298,689 10,729,309 6,327,253 14,804, OOoj 19. 907,681 12,935,188 5,116,973 13,470,784 15, 618,219 13,690,725 10,715,869 12,214,053 24, 820,307 Shipments. $7,855,270 9,817,300 11,248,1 15,311,625 14,095,975 14,940,506J 15,715,445| 21,266,165! 23,325,043; 21,602,635j 29,848,445, 30,554,665! Total. Receipts. $520,505,625 279,179,760 295,601,627 364,491,571 412,864,561 397,900,340 452,285,507 362,698,626! 376,762,806J 447,984,832J 368,015,506| 526,434,151! Shipments. $195,056,246 260,333,793 312,392,441 305,263,155 299,257,920 388,270,314 413,099,468 430,351,834 430,104,431 491,116,632 481,922,094 619,737,813 H 648,101,869,614,188,110288,737,466 205,447,148:57,347,08952,826,250 133,234,284 103,167,574 75,788,256 94,718,259225,093,684 215,581,162 4,804,724,91214,626,906,141 o CD N o . 15.—Currency receipts from and shipments to member and nonmember banks during calendaf year 1919. Shipments. Receipts. Federal Reserve Bank or branch. Boston New York Buffalo Philadelphia... (leveland Cincinnati.. Pittsburgh. Richmond Baltimore.. •Ulanta. Birmingham Jacksonville Nashville New Orleans Savannah (agency).. Chicago Detroit St. Louis Little Rock Louisville Memphis Minneapolis Kansas City Denver Omaha From member From nonmember banks. banks. $462,144, 1,412,385, 37,766, 430,627, 111,189, 78,580, 187, 865, 76,561, 91,712, 89,565, 27,532, 22,151, 4,399, $43,708,906 193,401,002 10,603,714 64,657, 173,050 13,847,011 2,886,821 504,910 2,269,024 559,356 443,606 1,033,547 1,268,453 405, 881 77,120,581 92,155, 837 90,599,358 28,800,671 22,557,502 4,399,982 $401,317,115 1,727,348,000 46,099,000 389,045,559 102,945, 982 54,924,164 200,867,129 110,017,324 66,958,584 61,116,037 26,014,993 24,514,362 3,817,000 50,609,221 9,166,600 429,660,144 179,445,443 To nonmember banks. $1,023,310 48,452,000 12,572,000 18,000 26,014,993 24,532,362 213,079 483,949 57,347,089 764,305 92,293,943 66,628, 724 236,300 375,100 501,034 17.329 23,741,879 17,198,462 14,046,230 21, 786,346 187,400 17, 840 64,947 12,132,962 385,106 63,530 20.330 $402,340,425 131,600 42,000 223,500 1,920,671 554,310 911,098 2,958,009 6,638,672 163,131. 052 181,178, 675 Total. 1,775,800,000 58,671,000 389,269,059 104,866,653 55,478, 474 201,778,227 110, 230,403 67,090,184 61,158,037 116,986,993 14,065,411 24,316,042 46,938,100 52,451,150 478,267, 198 43,320; 876 ! 32,129, 988 56, 863, 140 91,529, 638 23, 724, 550 17,178, 132 $505,853,000 1,605,786,206 48,370,593 444,475,010 114,076,129 79,084,971 190,134,904 To member banks. 64,830,220 8,177,300 484,905, 870 163,195,999 193,311,637 16,953,426 43,384,406 35,087,997 8,177, j I 16,568, 320 j Total. Excess. 155,000 5,079,023 3,500 2,521,452 294,500 88,350 3,817,000 50,764,221 9,166,600 434, 739,167 179,448,943 119,508,445 14,359,911 24,404,392 47,174,400 52,826,250 Receipts. $103,512,575 $170,013,794 10,300,407 55,205,951 9,209,476 23,606,497 o 11,643,323 33,109, 822 H O w 25,065,653 29,441,321 2,785,678 1,974,860 582,982 14,065,999 50,166, 703 16,252,944 73,803,192 2,593,515 18,980,014 12,086,403 4,520,839 67,129,758 25,164,185 14,233,630 9,508,249 21,804,186 Shipments. 4,605,724 to o Dallas El Paso Houston San Francisco Portland Salt Lake City. Seattle Spokane 52,931,363 12,364,589 7,284,534 136,774,081 19,452,705 13,109,751 34,549,588 0,704,213 1,102,983 1,185,039 919,748 13,286,307 87,368 | 84,795 j 951,723 j 93,153 54,034,346 13,549,628 8,204,282 150,060,388 19,540,073 13,194,546 35,501,311 6,797,366 66, 448, 740 11, 846,224 11,850,030 135,263,610 24,080,456 8,144, 250 26,390,900 7,990,500 345, 765 1,957, 800 2,269, 700 7,687,331 178,900 2,230,150 | 3,287,465 327,600 66,794,505 ! 13, 804,024 i 14,119, 730 | 142,950,941 I 24,259,356 10,374,400 29,678,365 8,318,100 12,760,159 254,396 5, 915, 448 7,109,447 4,719,283 2,820,146 5,822,946 1,520,734 fej Total 4,492,379,37( 312,345,536 4, 804, 724,912 4,533,100,363 93,805,778 4,626,906,141 X 177,818, 771 W . w H W o Exhibit C—STATEMENTS OF CONDITION OF FEDERAL RESERVE BANKS. No. 16.—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 1919. RESOURCES. [In thousands of dollars.] Gold and gold certificates Gold settlement fund, Federal Reserve Board. G old with foreign agencies Total gold held by b a n k s — Gold with Federal Reserve agents. G old redemption fund Jan. 31. Feb. 28. I Mar. 28. Apr. 25. May 29. June 27. July 25. Aug. 29. j Sept. 26. 338,916 422,686 5,828 345,762 326,791 463,484 | 563,577 5,829 ! 5,829 346,618 586,742 314,135 597,046 270,601 591,532 244,231 | 239,168 563,640 I 502,506 79,370 340,022 605,809 Oct. 31. Nov. 28. 254,027 j 235,348 444,126 | 440,286 129,923 ! 135,696 Dec. 20. 229,445 352,785 134,320 767,430 815,075 896,179 945,831 933,360 911,181 862,133 807,871 821,044 828,076 811,330 716,550 1,253,330 1,187,760 1,113,070 1,109,949 1,131,725 1,113,824 1,108,051 1,142,589 1,196,325 1,205,576 1,148,724 1,240,032 91,346 120,163 133,038 113,436 122,658 122,779 124,967 116,328 100,485 104,348 133,587 121,850 w 8 Total gold reserves. Legal-tender notes, silver, etc Total reserves 2,112,106 2,122,998 2,142,305 2,169,216 2,187,743 2,147,784 2,095,151 2,066,788 2,117,854 70,936 I 67,363 68,219 65,872 69,188 65,725 68,472 69,651 I 67,510 |2,179,646 ,138,000 2,093,641 2,078,432 67,592 57,104 66,025 ;8,723 2,210,524 2,240,152 |2,255,106 2,216,256 2,161,023 2,135,976 2,187,505 2,205,592 2,135,536 Bills discounted: Secured by Government war obligations* All other Bills bought in open marketf j jl,357,571 1,667,965 1,691,010 1,760,672 il,802,893 1,573,483 1,616,210 ,609,296 1,572,503 j 243,557 211,855 195,230 189,740 186,499 244,557 251,392 205,838 309,779 I 281,293 276,919 248,107 185,822 183,650 304,558 375,556 363,138 342,491 Total bills on hand United States Government bonds United States Victory notes United States certificates of indebtedness All other earning assets jl, 882,421 2,156,739 2,134,347 2,136,234 |2,173,042 2,122,598 2,243,158 2,178,272 2,224,773 2,,522,902 2,709,804 2,780,090 27,135 j 27,131 27,086 27,096 27,094 27,138 27,130 26,845 j 28,252 27,097 26,848 26,834 335 286 198 137 84 \ 64 57 j 266,532 155,688 173,797 191,501 I 201,800 204,104 212,028 243,411 251,081 274,325 288,032 273,507 3 4 4 Total earning assets ,681,082 jl, 736,033 1,510,364 447,465 478,17b 684,514 585,212 394,355 495,595 2,177,209 2,339,525 2,335,285 2,354,870 2,402,056 2,354,167 2,482,558 2,448,977 2,503,088 2,824,156 3,024,741 3,080,495 g o Bank premises Gold in transit or in custody in foreign countries. Uncollected items and other deductions from gross deposits 691,454 5 per cent redemption fund against Federal Reserve bank notes j 6,767 All other resources 11,631 Total resources. * Includes bills discounted for other Federal Reserve Banks, viz t Includes bankers' acceptances bought from other Federal Reserve Banks: With their indorsement Without their indorsement 9,713 ", 712 10,574 10,986 11,257 11,784 12,796 107,119 13,146 80,246 653,465 660,066 630,614 634,639 686,063 690,495 709,394 827,404 6,813 8,497 7,067 7,274 8,176 8,301 8,963 10,035 9,714 10,551 10,613 9,898 11,580 9,995 11,503 13,357 19,242 12,878 13,002 855,795 1,013,426 1,075,100 13,333 7,869 12,671 6,659 13,237 8,062 5,075,355 5,206,736 5,229,928 5,252,687 5,321,785 5,288,008 5,366,371 5,435,837 5,631,890 5,939,344 6,230,041 6,325,432 46,073 53,816 74,409 90,964 112,865 122,607 84,900 53,655 70,195 28,948 23,500 40,615 16,918 2,112 25,841 14,400 4,098 32,390 7,159 26,380 858 26,429 5,062 27,456 48,579 39,432 31,702 45,864 40,474 96,440 58,201 82,589 49,466 82,764 49,466 83,317 81,087 84,926 81,087 85,296 81,087 86,013 81,087 87,001 81,087 87,339 81,087 Government deposits 64,928 210,547 168,147 61,276 I 100,465 98,157 73,614 116,038 54,494 91,726 141,479 Due to members—reserve account.. 1,693,132 1,620,972 1,631,167 1,664,320 1,656,118 1,713,030 1,718,396 1,729,950 1,731,413 ll, 833,481 1,844,434 Deferred availability items 472,042 494,653 484,906 491,605 517,638 534,420 535,178 563,387 653,381 j 693,766 861,436 Other deposits, iacluding foreign government credits. 120,809 124,022 117,271 135,057 150,324 115,693 117,444 95,654 97,843 98,798 98,479 72,357 1,786,874 822,680 97,659 LIABILITIES. Capital paid in. Surplus 80,913 22,738 81,452 22,738 81,641 49,466 82,015 49,466 Total gross depo its 2,350,911 2,450,194 2,401,491 2,382,708 12,465,559 2,436,757 2,487,056 2,446,310 2,541,724 2,725,555 2,902,825 2,779,570 Federal Reserve notes in actual circulation 2,450,729 2,472,307 2,521,776 2,549,552 2,519,292 2,499,180 2,504,497 2,580,629 2,655,354 2,752,876 2,852,277 3,057,646 Federal Reserve bank notes in circulation—net 261,039 liability 129,445 134,042 145,540 158,848 168,427 177,185 193,849 219,815 239,451 254,933 256,793 30,014 36,452 58,751 All other liabilities 40,619 50,058 46,003 30,098 42,656 16,565 28,978 38,880 23,070 Total liabilities 5,075,355 5,206,736 5,229,928 5,252,687 5,321,785 5,366,371 5,435,837 5,631,890 5,939,344 6,230,041 6,325,432 No. 16.—Combined resources and li< of all Federal Reserve Banks as at close of business on the last Friday of each month during the calendar year 1919—Continued. LIABILITIE S—Continued. [In thousands of dollars.] Jan. 31. Feb. 28. Mar. 28. Apr. 25. May 29. June 27. July 25. 46,073 53,816 74,409 90,964 112,865 122,607 84,900 16,918 25,841 4,098 7,159 858 5,062 Aug. 29. Sept. 26. Oct. 31. N o v . 28. Dec. 26 MEMORANDA. Contingent liability as indorscr o n Discounted paper reciiscountcd with other Federal Reserve Banks . . . . Bankers'acceptances sold to other Federal Reserve Banks 53,655 70,195 28,948 23,500 40,615 40,474 69,899 DISTRIBUTION OF BILLS ON HAND BY MATURITIES. I Bills discounted: Within 15 days Over 15 but within 30 days.. Over 30 but within 60 days.. Over 60 but within 90 days.. Over 90 days 1,511,355 1,529,010 1,648,426 1,727,796 1,484,822 1,532,918 1,519,814 1,532,058 1,770,521 1,582,690 1,484,790 35,738 123,334 103,924 57,883 168,881 74,823 53,870 120,183 103,418 135,642 244,890 202,040 115,670 80,574 141,123 122,083 99,788 152,545 154,918 143,943 293,789 292,715 60,509 86,221 51,427 123,022 99,017 183,448 56,531 109,773 68,568 79,889 152,125 24,226 22,321 21,252 11,648 23,567 31,270 18,640 21,199 6,555 9,016 20,358 1,886,240 1,950,412 Total Bills bought in open market: Within 15 days Over 15 but within 30 days.. Over 30 but within 60 days.. Over 60 but within 90 days.. Over 90 days Total 281,293 9,392 1,818,040 1,867,602 1,815,134 1,882,282 2,128,547 2,214,209 2,194,878 82,025 76,479 93,348 25,067 78,660 71,998 81,882 15,567 60,702 51,327 52,688 21,105 52,301 39,711 69,632 22,006 75,449 64,136 113,389 51,584 74,463 81,152 146,190 73,751 95,517 79,732 137,296 50,593 108,414 85,982 112,931 35,164 83,577 90,740 159,536 60,502 89,003 85,807 203,037 117,566 182 123,727 100,060 209,278 152,147 276,919 248,107 185,822 183,650 304,558 375,556 363,138 342,491 I 394,355 495,595 585,212 No. 17.—Principal resources and liabilities of all Federal Reserve Banks at close of business on each Friday, Jan. 3 to Dec. 26, 1919. [In thousands of dollars.] Gold Gold and gold certificates. settlement fund. 338,717 334,552 334,696 343,692 338,916 348,605 347,764 350,417 345,762 341,070 332,749 329,741 326,791 333,384 335,162 346,145 340,022 346,707 345,797 335,224 346,997 346,618 398,997 430,730 387,572 407,698 422,686 419,050 437,278 457,889 463,484 511,227 501,078 566,864 563,577 612,711 610,196 612,365 605,809 600,989 569,082 548,954 572,001 586,742 Gold with foreign -agencies. Gold with Federal Reserve agents. Gold redemption fund. 5,829 5,828 5,828 5,828 5,828 5,829 5,829 5,829 5,829 5,829 5,829 5,829 5,829 1,263,383 1,238,245 1,289,105 1,255,192 1,253,330 1,231,166 1,217,363 1,197,983 1,187,760 1,163,840 1,170,601 1,112,938 1,113,070 1,100,173 1,082,444 1,085,519 1,109,949 1,104,699 1,134,198 1,150,903 1,139,825 1,131,725 84,268 84,715 85,368 88,907 91,346 103,533 111,113 112,923 120,163 117,513 119,277 125,470 133,038 104,682 115,078 118,128 113,436 114,223 125,271 140,756 119,916 122,658 Bills discounted. Total cash reserves, Total gold including Secured by reserves. legal ten- Governder notes, ment war All other. silver, etc. obligations. Bills bought in open market. United United States States Govern- Victory ment notes. bonds. United States certificates of indebtedness. Total United States securities. 1919 Jan. 3 10 17 24 31 Feb. 7 14 20 28 7 14 21 28 Apr. 4 11 18 25 May 2 9 16 Mar. 23 29 2,091,194 2,094,070 2,102,569 2,101,317 2,112,106 2,108,183 2,119,347 2,125,041 2,122,998 2,152,154 2,161,898 2,170,163 2,168,387 2,179,646 2,175,614 2,185,318 2,191,532 2,188, 723 2,139,479 I 2,129,534 | 2,140,842 I 2,205,462 2,196,737 2,208,578 2,142,305 I 2,210,524 2,150,950 2,218,628 2,142,880 2,211,989 2,162,157 I 2,230,859 2,169,216 2,240,152 2,166,618 2,237,219 2,174,348 2,242,784 2,175,837 I 2,245,857 2,178,739 2,247,933 2,187,743 i 2,255,106* 1,534,670 1,484,847 1,347,088 1,497,500 1,357,571 1,451,147 1,603,052 1,596,458 1,667,965 1,701,487 1,702,351 1,691,678 1,691,010 1,674,916 1,767,459 1,720,960 1, 760,672 1,788,068 1,795,735 1,863,476 1,762,487 1,802,893 295,194 273.229 254,263 264,533 243,557 243,254 233,849 221,996 211,855 186,240 184,012 189,861 195.230 193,066 200,465 201,314 189, 740 178,715 172,568 175,464 176,379 186,499 290,269 277,896 273,607 284,539 281,293 282,702 275,068 269,920 276,919 273,493 262,139 261,924 248,107 240,790 218,590 196,885 185,822 195,284 182,036 184,727 193,187 183,650 29,824 28,821 28,571 28,571 28,252 28,250 28,101 28,095 27,094 27,057 27,223 27,222 27,138 27.134 27.136 27.137 27.135 27,132 27,144 27,131 27,149 27,131 125,063 175,809 271,173 147,398 266,532 139,501 141,204 147,123 155,688 159,835 168,348 172,471 173,797 •178,646 185,711 189,038 191,501 194,262 202,363 204,082 199,748 201,800 154,887 204,630 299,744 175,969 294,784 167,751 169,305 175,218 182,782 186,892 195,571 199,693 200,935 205,780 212,847 216,175 218,636 221,394 229,507 231,232 226,914 229,014 No. 17.—Principal resources and liabilities of all Federal Reserve Banks at close of business on each Friday, Jan. 3 to Dec. 26, 1919—Continued. [In thousands of dollars.] Gold and gold certificates. Gold settlement fund. 354,969 355,811 332,676 314,135 282,943 279,545 273,810 270,601 263,275 262,745 250,651 260,507 244,231 243,238 231,609 230,047 239,168 242,405 245,485 251,954 248,375 254,027 581,055 582,675 581,238 597,046 564,290 554,812 591,190 591,532 641,896 618,636 591,206 579,480 563,640 542,310 537,723 512,080 502,506 516,335 496,904 461,193 465,535 444,126 Gold Gold with Gold rewith Federal Total gold Reserve demption reserves. foreign fund. agents. agencies. Bills discounted. Total cash reserves, Bills including Secured by bought legal tenin open Governder notes, ment war All other. market. silver, etc. obligations. United States I United Govern- States ment bonds. United States certificates of indebtedness. Total United States securities. 1919. June July Aug. Sept. Oct. 6 13 20 27 3 11 18 25 1 8 15 22 29 5 12 19 26 3 10 17 24 31 45,479 79,370 108,892 108,123 106,917 132,983 129,923 1,139,508 1,117,970 1,127,216 1,113,824 1,155,278 1,163,068 1,134,173 1,108,051 1,071,307 1,084,047 1,118,894 1,127,028 ,142,589 ., 172,168 ., 190,769 ,208,961 ,196,325 ,166,398 16,697 1,201,302 1,197,933 1,205,576 126,272 137,418 124,595 122,779 126,435 114,399 112,927 124,967 111,997 119,328 121,836 107,270 116,328 109,336 108,766 95,399 100,485 101,252 94,119 107,077 101,779 | 104,348 ! 2,201,804 2,193,874 2,165,725 2,147,784 2,128,946 2,111, 824 2,112,100 2,095,151 2,088,475 2,084,756 2,082,587 2,074,285 2,066,788 2,067,052 2,068,867 2,091,966 2,117,854 2,135,282 2,131,328 2,128,443 2,146,605 2,138,000 2,270,343 2,261,988 2,234,459 2,216,256 2,195,353 2,180,211 2,177,481 2,161,023 2,156,327 2,152,118 2,151,723 2,142,701 2,135,976 2,136,870 2,138,499 2,162,057 2,187,505 2,205,511 2,202,100 2,199,185 2,214,561 2,205,592 1,620,994 1,695,576 1,621,928 1,573,483 1,632,639 1,684,946 1,579,728 1,616,210 1,612,639 1,608,583 1,522,992 1,563,048 1,609,296 1,635,233 1,524,521 1,383,896 1,572,503 1,654,166 1,672,797 1,698,885 1,666,055 1,681-082 190,130 182,598 215,512 244,557 262,389 251,367 248,347 251,392 235,300 225,535 220,347 211,262 205,838 212,185 230,317 261,985 309,779 361,771 401,058 422,842 416,084 447,465 198,307 234,537 274,736 304,558 330,679 360,035 372,353 375,556 .374,791 381,241 j 374,375 362,911 363,138 354,667 | 362,005 353,817 342,491 | 326,667 326,852 342,938 368,846 394,355 27.129 27.130 27.131 27,130 27.130 27.131 27,084 27,086 27,094 27.095 27,098 27,098 27,096 27,096 27.096 27,095 27,097 27,095 27,096 27,097 27,095 26,845 333 333 333 335 377 374 363 286 280 280 274 209 198 197 192 192 137 136 133 87 86 84 227,553 204,405 201,883 204,104 200,068 206,054 209,941 212,028 217,982 | 229,724 | 295,727 237,847 243,411 250,223 341,655 322,986 251,081 263,148 267,551 269,414 273,585 274,325 255,015 231,868 229,347 231,569 227,575 233,559 237,388 239,400 245,356 257,099 323,099 265,154 270,705 277,516 368,943 350,273 278,315 290,379 294,780 296,598 300,766 301,254 Nov. 7. 14. 21.. Bee. 28.. 5.. 12.. 19.. 26.. 244,836 248,601 248,012 235,348 234,622 243,148 241,325 229,445 429,429 440,078 444,547 440,286 428,812 404,066 399,935 352,785 127,165 146,176 142,195 135,696 132,935 140,910 137,717 134,320 1,207,275 1,194,319 1,166,086 1,148,724 1,172,191 1,188,343 1,201,654 1,240,032 110,860 104,086 118,475 133,587 118,704 119,821 115,182 121,850 2,119,565 2,133,260 2,119,315 2,093,641 2,087,264 2,096,288 2,095,813 2,078,432 2,187,369 2,200,106 2,186,972 2,159,666 2,154,095 2,160,405 2,154,911 2,135,536 1,771,028 1,700,618 1,673,890 1,736,033 1,603,313 1,588,417 1,414,950 1,510,364 418,461 439,000 450,747 478,176 504,795 550,999 580,162 684,514 433,586 455,653 480,043 495,595 514,219 541,551 566,266 585,212 26,846 26,846 26,847 26,848 26,848 26,847 26,846 26,834 84 79 57 57 54 54 54 64 273,199 278,538 285,341 300,129 305,463 312,245 288,032 283,853 314,937 310,755 273,219 303,558 273,507 300,120 330,458 300,405 W M w ? H Q O s O o I > N o . 17.—Principal resources and liabilities of all Federal Reserve Banks at close of business on each Friday, Jan. 3 to Dec. 26, 1919—Continued. 00 [In thousands of dollars.] All other earning assets. Total earning assets. 1919. Jan. 3... 10.. 17... 24... 31... Feb. 7.. 14.. 20.. 28.. Mar. 7.. 14.. 21. 28.. Apr. 4.. 11.. 18.. 25.. May 2.. 9.. 16.. 23.. 29.. 2,275,033 2,240,615 2,174,706 2,222,545 2,177,209 2,144,858 2,281,278 2,263,596 2,339,525 2,348,116 2,344,077 2,343,160 2,335,285 2,314,555 2,399,383 2,335,334 2,354,870 2,383,461 2,379,846 2,454,889 2,358,967 2,402,056 Uncollected items and Total reCapital other and paid in. deductions sources from gross liabilities. deposits. 828,849 712,381 816,914 716,588 691,454 624, 861 701,465 633,806 653,465 599,197 683,017 797,303 660,066 644,959 636,384 655,446 630,614 j 653,926 | 628,034 ' 709,355 679,798 634,639 | 5,285,868 5,141,431 5,187,193 5,132,658 5,075,355 4,970,615 5,194,528 5,113,192 5,206,736 5,178,134 5,247,803 5,373,425 5,229,928 5,202,385 5,272,634 5,248,646 5,252,687 5,302,226 5,276, 723 5,440,243 5,316,234 5,321, 785 80,792 80,812 80,510 80,820 80,913 81,061 81,211 81,406 81,452 81,490 81,562 81,612 81,641 81,658 81,750 81,774 82,015 82,198 82,228 82,397 82,553 82,589 to Govern- m Due Deferred e m b e r s - availabilment Surplus. reserve deposits. account. ity items. 22,738 22, 738 22,738 22, 738 22,738 22, 738 22,738 22,73 8 22,738 49,466 49,466 49,466 49,466 49,466 49,466 49,466 49,466 49,466 49,466 49, 466 49,466 49,466 89,821 37,291 48,996 146,381 64,928 96,809 192,970 205,675 210,547 195,559 150, 783 285,785 168,147 85,008 169,972 106,561 91,726 143,273 89,761 185,841 99,999 141,479 1,602,901 1,640,729 1,694,960 1,624,415 1,693,132 1,590,441 1,623,158 1,563,912 1,620,972 1,626,076 1,675,045 1,604, 719 1,631,167 1, 655,298 1,628,693 1,655,860 1,664,320 1, 644,434 1,688,906 1,713,341 1,697,524 1,656,118 569,055 495,354 537,172 511,899 472,042 439,221 517,726 480,257 494,653 456,289 509,112 555,383 484,906 487,593 487,153 496,788 491,605 512,703 483,501 549, 702 537,642 517,638 Other deposits, including Total gross foreign Govern- deposits. ment credits. 118,581 114,874 128,236 113,429 120,809 112,551 112,273 114,758 124,022 123,363 117,522 120,062 117,271 120,426 128,481 131,307 135,057 128,466 129,175 125, 786 142,138 150,324 2,380,358 2,288,248 2,409,364 2,396,124 2,350,911 2,239,022 2,446,127 2,364, 602 2,450,194 2,401,287 2,452,462 2,565,949 2,401,491 2,348,325 2,414, 299 2,390,516 2,382,708 2,428,876 2,391,343 2,574, 670 2,477,303 2,465,559 Federal Reserve notes in actual circulation. 2,647,605 2,590,681 2,513,089 2,466,556 2,450,729 2,454,165 2,468,388 2,466,248 2,472,307 2,488,537 2,503,095 2,510,687 2,521, 776 2,547,670 2,548,588 2,543,704 2,549,552 2,549,040 2,556,749 2,532,039 2,504,253 2,519,292 Federal Reserve bank notes in circulation—net liability. 120,267 123,466 125,011 126,810 129,445 131,315 132,291 133,465 134,042 136,591 139,479 142,442 145,540 149,449 151,560 155,074 158,848 161,450 164,415 168,045 167,208 168,427 June 6. 2,264,446 2,344,579 2,341,523 2,354,107 2,453,282 2,529,907 2,437,816 2,482,558 2,468,086 2,472,458 2,440,813 2,402,375 2,448,977 2,479,601 13. 20. 27. July 3 . . 11.. 18.. 25.. Aug. 1.. 15 22 29 Sept. 5 12 19 26 Oct. 3 10 1 | | 1 ! 17.. 24.. 31.. Nov. 7.. 14.. 21.. 28.. Dec. 5.. 12.. 19.. 26.. | | ! ; 2,485,786 2,349,971 2,503,088 2,632,983 2,695,487 2, 761,263 2,751,751 2, 824,156 2,923,204 2,900,734 2,916,925 3,024,741 2,933,082 2,981,087 2,891,836 3,080,495 650, 757 835,362 848,157 686,063 742,527 740,994 857,194 690,495 739,617 793,301 928,030 865,927 816,513 934,964 031,298 139,260 907,650 908,310 900,013 162,167 937,250 875,037 937,178 023,574 000,288 013,426 920,299 983,527 140,224 ,075,100 5,215,442 5,472,146 5,455,450 5, 288,008 5, 423,108 5,483,197 5,504,405 5,366,371 5,395,952 5,450,301 5,553,188 5,444,096 5,435,837 5,584,921 5,691,076 5,686,609 5,631,890 5,782,131 5,832,049 6,161,812 5,938,630 5,939,344 6,081,606 6,159, 760 6,137,541 6,230,041 6,041,396 6,159,241 6,224,604 6,325,432 82,652 82,674 82,756 82, 764 82,811 82,851 82,958 83,317 83,532 83,807 84,400 84,730 84,926 84,996 85,140 85,208 85,296 85,350 85,391 85,540 85,863 86,013 86,267 86,769 86,885 87.001 86,973 87.002 87,049 87,339 49,466 49,466 49,466 49,466 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 81,087 26,058 245,245 161,495 73,614 136,328 151,190 137,090 116,038 68,357 108,686 58,590 103,330 54,494 59,110 33,584 78,134 61,276 78,832 80,067 133,639 83,984 100,465 63,687 77,912 102,805 98,157 39,798 89,503 64,459 72,357 1, 705,104 1,633,583 1,648, 630 1, 713,030 1,687,608 1,726,329 1, 712, 796 1,718,396 1,742,478 1,756,807 1,778,365 1,679,834 1,729,950 1, 757,641 1,802,791 1,651,426 1,731,413 1,765,863 1, 777,859 1,841,101 1,813,563 1,833,481 1,906,867 1,863,379 1,837,540 1,844,434 1,830,037 1,817,406 1,733,013 1,786,874 497,349 623, 739 682,097 534,420 561,896 591,230 651,735 535,178 581,232 555,485 670,539 605,812 563,387 643,194 679,043 802,715 653,381 691,968 688, 734 882,156 733,227 693, 766 739,384 842,047 811,204 861,436 717,852 759,554 848,607 822,680 134,364 127,565 127,264 115,693 128,698 114, 678 125,069 117,444 113,731 107,882 109,210 98,098 98,479 99,136 134,096 106,899 95,654 97,913 97,203 101,430 98,878 97,843 97,750 98,494 95,539 98, 798 94,133 103,488 105,069 97,659 2,362,875 2,630,132 2,619,486 2,436,757 2,514,530 2,583,427 2,626,690 2,487,056 2,505,798 2,528,860 2,616,704 2,487,074 2,446,310 2,559,081 2,649,514 2,639,174 2,541,724 2,634,576 2,643,863 2,958,326 2,729,652 2,725,555 2,807,688 2,881,832 2,847,088 2,902,825 2,681,820 2,769,951 2,751,148 2,779,570 2,513,037 2,499,265 2,488,253 2,499,180 2,552,348 2,538,127 2,512,048 2,504,497 2,506,820 2,532,057 2,540,904 2,553,534 2,580,629 2,611,697 2,621,228 2,621,258 2,655,354 2,708,186 2,741,684 2,752,569 2,753,457 2,752,876 2,806,759 2,808,456 2,817,173 2,852,277 2,881,359 2,907,435 2,988,894 3,057,646 169,246 170,937 173,775 177,185 181,570 184,806 186,911 193,849 200,945 205,318 209,709 215,795 219,815 223, 56^ 228,169 232,594 239,451 241,937 247,176 249,675 251,590 254,933 257,572 257,281 257,680 256,793 257,480 258,444 259,975 261,039 120 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. MOVEMENT OF EARN/NO ASSETS OF ALL FEDERAL RESERVE BANKS DURING CALENDAR YEAR 1919. 11 UNITED STATES SECURITIES, 750 SQO 250 inin 0 750 500 2S0 0 mi iil ACCEPTANCES B0U6HT: W too 60 80 60 60 40 20 20 O O PERCENTA6E OF WAR PAPER TO TOTAL DISCOUNTS, IY+D. 2500\ 1 1 1 1 1 1 F 1 1 1 ' \2500 2000 2000 1500 1500 IOOO IOOO 500 500 TOTAL BILLS• DISCOUNTED, "D;AND WAR PAPER,' 3000 3000 2500 \ 2000 ^ ^ 2500 • mi M l Ilii 1000 I P ft » lHHIPi 1500 MiH i in iHpn i i i ni sPl p i IS iip in 2000 1500 i n iitt IOOO pj 500 iiti 0 TOTAL EARNING ASSETS. JAN. FEB. MOt. APRL MAY JUHt JULY Am SEPT. OCT. IfOtt PEC No. 18.—Required reserves against net deposit and Federal Reserve note liabilities and amounts of gold held in excess of required reserves. [In thousands of dollars.] Net deposits. Federal Reserve notes in ! circulation. i Total net I deposits and Amount. Required reserve of 35 per cent. 8 Amount, j ^ f J J I per cent. liabilities. Total amount of required reserve. Total cash reserves held. Gold in excess of required reserves (free gold). Ratio of total cash reserves to net deposits and Federal Reserve note liabilities combined. W s Ta o 1919. Jan. 3.. 10. 17 21 31 Feb. 7. 14... . 20 28 Mar. 7. 14. 21 28 Apr. 4 11. 18 25 1,551,509 1,575,867 1,592,450 1,679,536 1,659,457 1,614,161 1,744,662 1,730,796 1,796,729 1,802,090 1,769,445 1,768,646 1,741,425 1,703,366 1,777,915 1,735,070 1,752,094 543,028 551,553 557,358 587,838 580,810 564,956 610,632 605,779 628,855 630,732 619,306 619,026 609,499 596,178 622,270 607,275 613,268 2,647,605 2,590,681 2,513,089 2,466,556 2,450,729 2,454,165 2,468,388 2,466,248 2,472,307 2,488,537 2,503,095 2,510,687 2,521,776 2,547,670 2,548,588 2,543,704 2,549,552 1,059,042 1,036,272 1,005,236 986,622 980,292 981,666 987,355 986,499 988,923 995,415 1,001,238 1,004,275 1,008,710 1,019,068 1,019,435 1,017,482 1,019,821 4,199,114 4,166,548 4,105,539 4,146,092 4,110,186 4,068,326 4,213,050 4,197,044 4,269,036 4,290,627 4,272,540 4,279,333 4,263,201 4,251,036 4,326,503 4,278,774 4,301,646 1,602,070 1,587,825 1,562,594 1,574,460 1,561,102 1,546,622 1,597,987 1,592,278 1,617,778 1,626,147 1,620,544 1,623,301 1,618,209 1,615,246 1,641,705 1,624,757 1,633,089 2,152,154 2,161,898 2,170,163 2,168,387 2,179,646 2,175,614 2,185,318 2,191,532 2,188,723 2,205,462 2,196,737 2,208,578 2,210,524 2,218,628 2,211,989 2,230,859 2,240,152 550,084 574,073 607,569 593,927 618,544 628,992 587,331 599,254 570,945 579,315 576,193 585,277 592,315 603,382 570,284 606,102 607,063 51.3 51.9 52.9 52.3 53.0 53.5 51.9 52.2 51.3 51.4 51.4 51.6 51.9 52.2 51.1 52.1 52.1 O i N o . 18.—Required reserves against net deposit and Federal Reserve note liabilities and amounts of gold held in excess of required reserves—Continued. to [In thousands of dollars.] Net deposits. Amount. Required reserve of 35 per cent. Federal Reserve notes in circulation. Amount. Required reserve of 40 per cent. Total net Total deposits and amount of Federal required Reserve note reserve. liabilities. Total cash reserves held. Gold in excess of required reserves (free gold). Ratio of total cash reserves to net deposits >• fe ^ _ Federal Reserve note liabilities combined. p ^ £rf g hi and 1919. May June July Aug. Sept. 2 9 16 23 29 6 13 20 27 3 11 18 25 1 8 15 22 29 5 12 19 26 1,774,950 1,765,309 1,865,375 1,797,505 1,830,920 1,712,118 1,794,770 1,771,329 1,750,694 1,772,003 1,842,433 1,769,496 1,796,561 1,766,181 1,820,817 1,688,674 1,621,147 1,629,797 1,624,117 1,618,216 1,499,914 1,634,074 621,233 617,858 652,860 629,127 640,822 599,241 628,170 619,965 612, 743 620,201 644,852 619,324 628,796 618,163 637,286 591,036 567,401 570,429 568,441 566,376 524,970 571,926 2,549,040 2,556,749 2,532,039 2,504,253 2,519,292 2,513,037 2,499,265 2,488,253 2,499,180 2,552,348 2,538,127 2,512,048 2,504,497 2,506,820 2,532,057 2,540,904 2,553,534 2,580,629 2,611,697 2,621,228 2,621,258 2,655,354 1,019,616 1,022, 700 1,012,816 1,001,701 1,007,717 1,005,215 999, 706 995,301 999,672 1,020,939 1,015,251 1,004,819 1,001,799 1,002,728 1,012,823 1,016,362 1,021,414 1,032,252 1,044,679 1,048,491 1,048,503 1,062,142 4,323,990 4,322,058 4,397,354 4,301,758 4,350,212 4,225,155 4,294,035 4,259,582 4,249,874 4,324,351 4,380,560 4,281,544 4,301,058 4,273,001 4,352,874 4,229,578 4,174,681 4,210,426 4,235,814 4,239,444 4,121,172 4,289,428 1,640,849 1,640,558 1,665,676 1,630,828 1,648,539 1,604,456 1,627,876 1,615,266 1,612,415 1,641,140 1,660,103 1,624,143 1,630,595 1,620,891 1,650,109 1,607,398 1,588,815 1,602,681 1,613,120 1,614,867 1,573,473 1,634,068 2,237,219 2,242,784 2,245,857 2,247,933 2,255,106 2,270,343 2,261,988 2,234,459 2,216,256 2,195,353 2,180,211 2,177,481 2,161,023 2,156,327 2,152,118 2,151,723 2,142,701 2,135,976 2,136,870 2,138,499 2,162,057 2,187,505 596,370 602,226 580,181 617,105 606,567 665,887 634,112 619,193 603,841 554,213 520,108 553,338 530,428 535,436 502,009 544,325 553,886 533,295 523,750 523,632 588,584 553,437 51.7 51.9 51.1 52.3 51.8 53.7 J3 O H o ^ Hj W ft 52.7 g 52.5 W 52.1 p 50.8 49.8 50.9 50.2 50.5 49.4 H g «*j H W 50.9 9 w 51.3 § 50.7 P 50.4 50.4 52.5 51.0 Oct. 3, 10 17 24 31 Nov. 7, 14 21 28 Deo. 5 12 19 ,726,266 ,743,850 ,796,159 ,792,402 ,850,518 ,870,510 ,858,258 ,846,800 ,889,399 ,761,521 ,786,424 ,610,924 ,704,470 604,193 610,348 628,656 627,341 647,681 654,679 650,390 646,380 661,289 616,532 625,248 563,823 596,565 2,708,186 2,741,684 2,752,569 2,753,457 2,752,876 2,806,759 2,808,456 • 2,817,173 2,852,277 2,881,359 2,907,435 2,988,894 3,057,646 1,083,274 1,096,674 1,101,028 1,101,383 1,101,150 1,122,704 1,123,382 1,126,869 1,140,911 1,152,544 1,162,974 1,195,558 1,223,058 4,434,452 4,485,534 4,548,728 4,545,859 4,603,394 4,677,269 4,666,714 4,663,973 4,741,676 4,642,880 4,693,859 4,599,818 4,762,116 1,687,467 1,707,022 1,729,684 1,728,724 1,748,831 1,777,383 1,773,772 1,773,249 1,802,200 1,769,076 1,788,222 1,759,381 1,819,623 2,205,511 2,202,100 2,199,185 2,214,561 2,205,592 2,187,369 2,200,106 2,186,972 2,159,666 2,154,095 2,160,405 2,154,911 2,135,536 518,044 495,078 469,501 485,837 456,761 409,986 426,334 413,723 357,466 385,019 372,183 395,530 315,913 49.7 49.1 48.3 48.7 47.9 46.9 45.5 46.4 46.0 48.8 44.8 W O g s 1 5W in to CO 124 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. i NET DEPOSIT LIABILITIES, F.RMOTE CIRCULATION, CASH RESERVES, AMD RESERVE RATIO, Of ALL FEDERAL RESERVE BANKS. DURING CALENDAR YEAR 1919. e 70 £7 SO 40 60 ***** SO 40 - 30 do 20 20 10 JRESERVE HAT 10, (PERCENTAGE OF C+L) 6000 6000 SOOO scoo 4000-.. 4000 3000 2000 2000 am IOOO IOOO P&QSITANDF.RMOTZLIABILITIES,*L\ AliPTOTALRESZ 3000 £000 2000 IOOO 4000 3000 2000 IOOO F.R. NOTE CIRCULATION. JAH. 1 FEB\MC'ri\AFRL \MAY\JUHE\JULY\AU6. \SEPT\ OCT\!iOV\DEC\ EXHIBIT 0—CONDITION OF FEDERAL RESERVE BANKS. I REQUIRED AND EXCESS RESERVES. /, 6oldL<3ie$en>e$ requird -4 MAY\jU!tE\JU^^ &fr 125 N o . 19.—Average daily holdings of discounted bills, by months, during the calendar year 1919 and totals for 1918 and 1917. Federal Reserve Bank. Boston New York Philadelphia . Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco . . ... Total—1919 '. 1918 1917 March. April. May. June. July. to August. January. February. $128,211,454 684,720,582 177,059,450 110,101,482 89,084,194 77,734,791 165,739,209 64,624,598 32,371,000 66,559,290 49,464,836 88,984,131 $142,420,149 734,456,855 185,697,842 98,136,063 91,829,939 74,524,548 158,132,792 51,105,261 18,848,000 68,737,839 51,646,675 87,690,495 $144,540,609 7*45,545,361 187,159,835 109,910,115 94,647,814 77,776,512 182,414,143 69,442,450 23,395,000 79,744,405 52,494,357 94,461,038 $157,110,903 695,762,071 188,689,151 130,431,335 96,059,641 81,157,557 214,742,954 79,496,332 43,713,500 86,558,049 51,047,393 94,691,840 $152,233,040 753,166,858 192,374,942 132,273,443 93,118,887 84,215,540 220,888,776 68,153,931 48,169,000 87,150,314 51,370,232 90,811,118 $147,152,859 652,929,328 192,524,439 126,757,331 92,134,519 84,557,609 222,734,967 65,693,621 46,051,000 86,591,646 50,720,031 74,264,601 $144,812,282 739,789,808 188,589,796 112,873,258 89,912,879 83,313,601 216,904,077 57,095,404 37,856,400 84,358,300 55,496,471 56,918,061 $125,573,386 685,519,941 193,261,632 118,212,830 89,217,576 90,154,929 205,291,991 68,098,301 33,561,000 71,733,184 54,836,900 66,425,634 1,734,655,017 1,763,226,458 1,861,531,639 1,919,460,726 1,973,926,081 1,842,111,951 1,867,920,337 1,801,887,304 611,235,224 20,876,802 531,541,333 17,900,040 567,474,932 18,190,769 769,259,187 24,902,567 902,101,974 42,710,392 938,441,967 151,233,725 1,165,649,422 147,797,115 1,337,701,494 134,987,615 W w o Federal Reserve Bank. September. October. November. December. Year 1919. Year 1918. $76,415,140 439,075,629 75,556,041 73,080,025 54,299,950 41,159,081 150,018,487 51,755,325 33,463,611 55,732,674 32,083,680 57,413,505 $121,518,581 651,052,987 196,612,074 123,713,210 90,225,882 95,306,288 186,297,025 74,701,186 39,309,700 72,820,622 55,831,494 69,944,873 $127,392,286 788,495,509 204,075,941 142,712,525 99,203,720 105,477,500 228,308,375 82,545,493 56,007,000 99,300,520 60,404,714 79,492,060 $147,255,981 829,776,757 205,069,357 150,177,449 98,848,446 106,329,831 242,933,736 70,056,523 55,021,800 100,757,092 49,661,464 89,742,205 $170,522,598 759,737,480 206,825,892 162,522,519 106,920,025 95,766,349 293,668,441 72,393,861 65,132,000 90,817,568 48,653,660 84,060,930 $142,385,669 726,894,981 193,194,965 126,649,267 94,545,750 87,909,543 209,114,369 68,688,026 41,758,732 83,002,885 52,666,018 81,387,347 Total—1919 1,777,333,922 2,073,415,643 2,145,630,641 2,157,021,323 1,908,197,552 1918 1917 1,603,152,988 182,439,407 1,709,766,375 313,771,389 1,768,745,862 568,352,241 1,749,155,925 664,153,799 Boston . New York Philadelphia Cleveland Richmond Atlanta . Chicago St. Louis Minneapolis Kansas City Dallas San Francisco - . Year 1917. $12,812,843 78,622,402 9,923,917 9,531,459 10,720,028 5,812,100 24,407,209 9,314,101 7,370,500 10,635,571 4,666,809 6,468,358 1,140,053 148 190,285,297 M W S ?a o o 3 I 1 w to N o . 20.—Discounted paper held by each.Federal Reserve Bank on Dec. 26, 1919, distributed by maturities; also totals for the sijstem on the last Friday in December, 1918 and 1917. to GO Maturities. Federal Reserve Bank. Within 15 days. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco... Total—1919. 1918. 1917. From 16 to 30 days. From 31 to 60 days. From 61 to 90 days. $74,539,560 630,489,445 125,246,255 127,022,500 80,953,043 66,136,970 157,353,593 52,365,495 29,229,450 46,058,821 44,185,422 51,209,378 $41,825,037 61,313,832 47,404,648 11,812,705 10,128,477 8,113,410 28,709,423 8,221,535 9,812,912 8,641,698 3,135,747 5,769,936 $49,856,282 75,354,377 23,479,638 20,063,550 13,190,324 11,470,423 44,720,520 13,662,703 15,773,905 13,637,426 2,676,861 8,830,343 $28,599,679 21,032 843 12,005,760 8,564,389 4,382,299 4,452,085 40,576,680 3,898,190 12,045,412 9,707,142 2,466,872 4,394,583 1,484,789,932 244,889,360 266,107,544 57,367,000 292,716,352 166,876,852 175,006,000 152,125,934 1,149,955,240 355,373,000 Total. Percent. Over 90 days. d > 93,062,065 83,974,000 $15,715 3,090 4,122 114,269 49,223 3,909,117 87,692 3,195,333 9,387,778 1,596,116 1,990,102 $194,836,273 788,193,587 208,140,423 167,577,413 108,660,749 90,222,111 275,269,333 78,235,615 70,057,012 87,432,865 54,061,018 72,194,342 8.9 35.9 9.5 7.6 4.9 4.1 12.5 3.6 3.2 4.0 2.5 3.3 20,359,163 26,939,547 8,986,000 2,194,880,741 1,702,941,248 608,706,000 100.0 F o o w o N o . 21.—Acceptances purchased and held by each Federal Reserve Bank on Dec. 26, 1919, distributed by maturities; also totals for the system on the last Friday in 1918 and 1917. Maturities. Federal Reserve Bank. Within 15 days. Boston New York Philadelphia. Cleveland Richmond... Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas San Francisco. Total—1919.. 1918. 1917.. Total. Per cent. M From 16 to 30 days. From 31 to 60 days. From 61 days to 3 months. $4,609,791 33,910,815 44,784 20,414,816 1,805,900 1,858,700 12,284,178 16,043,506 4,172,587 4,782,242 1,347,877 22,447,848 $3,198,782 25,942,357 101,256 8,094,626 4,954,082 3,478,666 21,469,450 10,247,117 2,695,035 5,796,088 184,640 13,899,115 $4,533,982 71,043,643 1,848,140 15,687,429 6,048,185 7,788,777 36,637,327 6,808,264 7,202,291 6,844,792 6,166,009 38,670,706 $4,163,620 60,415,691 2,703,575 12,725,609 3,223,238 3,104,765 37,961,541 3,836,3.85 331,433 2,558,184 35,000 21,089,265 $16,506,175 191,312,506 4,697,755 56,922,480 16,031,405 16,230,908 108,352,496 36,935,272 14,401,346 19,981,306 7,733,526 96,106,934 2.8 32.7 1.3 § 16.4 jp 123,723,044 104,435,581 40,321,000 100,061,214 73,913,956 61,177,000 209,279,545 104,879,834 105,132,000 152,148,306 20,443,854 68,736,000 585,212,109 303,673,225 275,366,000 100.0 j> S •8 Q j o 9.7 2.8 2.8 18.5 6.3 fe g H g ^ 2.5 g 3.4 u. > W CO N o , 22.—Acceptances purchased and held by each Federal Reserve Bank on Dec. 31, 1919, distributed by classes of accepting institutions. GO [In thousands of dollars.] Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total: Dec. 31,1919.. Nov. 30,1919.. Oct. 31,1919... Sept. 30,1919.. Aug. 31,1919.. July 31,1919... June 30,1919.. May 31,1919... Apr. 30, 1919.. Mar. 31,1919.. Feb. 28,1919.. Jan. 31,1919... Dec. 31,1918.. Dec. 31,1917.. Dec. 30,1916.. Member banks. Nonmern- Nonmember trust ber State companies. banks. 12,518 123,413 4,494 30,051 15,717 14,481 84,788 25,739 12,516 12,791 5,538 63,293 170 2,302 405,339 347,852 271,701 208, 784 264,827 269,568 233,519 136,741 140,034 185,207 219,323 224,237 238,257 227, 717 66,803 O Private banks. 3,467 19,232 250 7,025 342 258 487 33,519 378 6,743 196 466 1,139 3,256 19 2,040 197 11,970 2,868 14 1,638 883 13,938 5,121 6,446 8,021 8,255 3,111 8,935 9,225 2,853 2,975 2,172 2,418 2,178 2,745 8,163 34,625 60,213 48,798 36,707 24,821 32,665 31,928 29,361 18,729 12,321 15,561 15,110 11,986 10,442 3,179 1,502 55,537 55,876 42,677 33,420 43,815 42,593 29, 648 14,628 14,196 15,263 22,062 22,163 20,385 20,137 18,224 76 100 875 868 275 Foreign bank branches and agencies. Trade acceptances. Total. Domestic. Foreign. Total 368 1,934 12,321 16,978 198,028 5,157 48,278 16,405 16,639 92,650 32,804 12,599 18,691 6,42,1 101,719 81 758 839 16,405 16,639 92,650 32,804 12,599 18,691 6,421 102,558 40,159 36,358 28,511 21,873 20,955 18,967 12,654 10, 612 8,230 12,885 13,586 15,119 13,444 7,657 566,369 495,330 387,617 297.153 365,373 371,991 314,407 183,563 177,756 231,088 272, 499 275,683 285,273 266,853 2,540 1,646 1,740 591 561 576 382 136 58 319 730 1,871 2,536 5,194 4,934 4,998 2,385 1,229 673 1,204 1,857 2,505 4,207 3,691 3,739 4,388 7,734 6,580 6,738 2,976 1,790 1,249 1,586 1,993 2,563 4,526 4,421 5,610 6,924 6,383 4,585 574,103 501,910 394,355 300,129 367,163 373,240 315,993 185,556 180,319 235,614 276,920 281,293 292,197 273,236 125,739 19,562 35 4,383 50 817 5,063 Total bankers' acceptances. 792 666 50 1,964 121.154 157 1,303 2,941 20 172 1,671 4,875 20 329 18,649 202,903 5,177 48,607 o W o N o . 23.— United States securities held by each Federal Reserve Bank on Dec. 31, 1919, distributed by classes and maturities. United States certificates of indebtedness. Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total 2 per cent consols of 1930. 2 per cent Panamas 4 per cent loan of of 1925. 1936-1938. 3 per cent 3 per cent conloan of version 1961. bonds of 1946-47. $750 $529 000 1,255,400 549,200 414,800 $100 • 915,100 240,600 1,862,500 100 7,155,000 2,450,900 2,428,750 15,053,700 237,000 21,000 367,300 260 20,000 281,500 $1,768,000 10,300 427,400 1,153,300 500 114,800 825,000 838,500 $6,850 $400 11,850 16,200 42,850 16,650 500 797,150 37,850 87,050 51,000 $2,700 1,000 26,600 402,400 1,500 2,593,000 900 6,526,300 20,400 18,573,860 1 27,150 114,900 1,007,050 $15,980,860 2,593,000 Total Total United States bonds. $539,210 1,256,800 1,384,900 833,400 1,234,300 375,600 4 477 100 1,153,400 6,050 927,160 4 per cent 41 per Liberty cent Liberty loan of loan. 1942-1947. 8,400 115,560 8,867,300 3 966 000 170,500 2,632,450 1,233,600 Amount of United States bonds with circulation privilege: 2 per cent consols and Panamas 4 per cent loan of 1925 $400 Sh per cent Liberty loan of 1947. 613,100 26,836,020 Victory notes. 2 per cent to secure circulation of Federal Reserve bank notes. All other. M H $369,000 $21,805,000 8,445,500 67,721,500 407,000 30,687,000 284,000 23,583,000 12,260,000 1,000 15,655,000 176,000 39,788,000 170,000 17,238,000 8,480,000 2,247,000 15,067,000 9,065,000 765,000 963,500 11,843,500 $22,344,400 69,028,300 32,071,900 24,426,650 13,494,600 16,044,200 44,265,100 18,391,400 8,598,435 23,934,750 13,031,000 14,475,950 67,575 259,375,000 13,828,000 273,203,000 300,106,685 $100 $21,436,000 59,276,000 30,280,000 10,250 23,299,000 300 12,260,000 3,600 15,664,000 39,612,000 17,068,000 8,480,000 2,875 450 12,820,000 8,300,000 10,880,000 50,000 W w a Amount of United Stages securities without circulation privilege: 3 per cent loan of 1961 3 per cent conversion bonds 3* per cent Liberty loan * 4~per cent Liberty loan 4 j per cent Liberty loan 3f per cent Victory notes 42 per cent Victory notes 2 per cent certificates of indebtedness 1 Other Treasury certificates of indebtedness Total Circulation privilege for Federal Reserve bank notes only. Total. Total United States securities. $900 6,526,300 114,900 1,007,050 613,100 10,100 57,475 259,375,000 13,828,000 . 281,532,825 H o w i N o . 24.— United States securities held by each Federal Reserve Bank on Dee. 31, 1918, distributed by classes and maturities. CO to U. S. certificates of indebtedness. Federal Reserve Bank. Boston cent per cent 4 per cent 3 per 3 per 2 per cent 2Panamas concent version consols of loan of of loan of bonds of 1925. 1930. 1936-1938. 1961. 1946-47. $529,000 1,255,400 549,200 414,800 $750 New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total $100 915,100 240,600 1,862,500 100 7,155,000 2,450,900 2 428,750 15,053,700 237,000 21,000 367,300 $1,768,000 260 20,000 281,500 927,160 10,300 $400 427,400 500 1,153,300 114,800 838,500 1,233,600 825,000 2,593,000 900 6,526,300 Amount of United States bonds with circulation privilege: 2 per cent consols and Panamas 4 per cent loan of 1925 3 | per 4 per cent cent Liberty Liberty loan of loan of 1942-1947. 1947. $140,350 11,850 266,200 42,850 16,750 19,950 600 5,050 $6,600 2 $568,880 797,150 37,750 183,700 83,050 26,600 403,550 1,500 81,400 850 1,100 4,970 8,000 22,100 27,150 503,600 1,136,500 $15,980,860 2,593,000 Total 4-1- per cent Liberty loan. 18,573,860 1,117,850 Circulation privilege for Federal Reserve bank notes only. 2 3 per cent 1-year 2 per cent Treasury to secure notes. 1 circulation of Federal Reserve bank notes. $1,105,230 1,395,750 1,384,900 1,084,550 1,234,200 553,750 4,509,500 1,153,400 120,530 8,866,450 3,989,800 2,460,950 $666,000 521,000 825,000 1,202,000 899,000 667,000 1,445,000 27,859,010 9,301,000 104,707,000 530,000 821,000 725,000 1,000,000 All other Total U. S. certificates and Treasury notes. Total u. s. securities. g $6,750,000 34,955,000 $93,374,500 353,000 8,855,000 1,065,500 9,458,000 3,885,000 5,297,000 102,000 14,167,000 6,568,000 4,350,000 266,500 3,499,000 58,000 3,175,000 500,000 3,748,000 976,000 96,695,500 $7,416,000 128,850,500 10,033,000 11,725,500 4,784,000 6,066,000 15,612,000 6,568,000 5,146,500 4,378,000 4,400,000 5,724,000 $8,521,230 130,246,250 11,417,900 12,810,050 6,018,200 6,619,750 20,121,500 7,721,400 5,267,030 13,244,450 8,389,800 8,184,950 210,703,500 238,562,510 Amount of United States securities without circulation privilege: 3 per cent loan of 1961 3 per cent conversion bonds 3 | per cent Liberty loan 4~per cent Liberty loan 4J per cent Liberty loan 3 per cent 1-year notes i 2 per cent certificates of indebtedness i Other Treasury certificates of indebtedness Total 1 Total U. S. bonds. $900 6,526,300 503,600 1,136,500 1,117,850 9,301,000 104,707,000 90,695,500 219,988, 65Q Includes unpaid portion of bonds sold on partial payment plan to individual subscribers, other than employees. 1 W o N o . 25.—Average daily holdings of each class of earning assets, by Federal Reserve Banks, during the calendar years 1918 and 1919. [In thousands of dollars.] Discounted bills. Purchased bills. United States securities. Federal Reserve Bank. Total, 1919. 1919 1918 1919 1918 1919 1918 Total, 1918 (including municipal g £ ^ warrants) gj Boston New Y o r k . . . . Philadelphia.. Cleveland Richmond Atlanta Chicago , St. Louis Minneapolis... Kansas City.., Dallas San Francisco. 142,386 726,895 193,195 126,649 94,546 87,910 209,114 68,688 41,759 83,003 52,666 81,387 76,415 439,076 75,556 73,080 54,300 41,159 150,018 51,756 33,464 55, 733 32,084 57,413 25,350 78,282 1,581 44,148 7,687 8,038 49,458 12,940 20,682 7,811 2,366 66,889 22,217 133,096 18,375 27,175 6,411 7,200 29,575 5,407 4,851 3,707 4,289 26,119 18,217 74,104 23,263 20,389 9,206 11,289 35,003 15,288 8,678 17,960 10,133 10,524 3,648 50,390 7,135 17,722 3,392 3,746 11,560 3,627 3,814 12,069 6,040 5,089 185,953 879,281 218,039 191,186 111,439 107,237 293,575 96,916 71,119 108, 774 65,165 158,800 102,280 622,632 101,067 117,977 64,103 52,174 191,167 60,790 42,129 71,509 42,609 88,621 Total... 1,908,198 1,140,054 325,232 288,422 254,054 128,232 2,487,484 11,557,058 1 H Q | Q § t H C ^ O ^ ^ t te S Includes $350,630 of municipal warrants. I w CO 134 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. AVERAGE DAILY HOLDINGS Of EACH CLASS Or EARNING ASSETS BYFEDERAL RESERVE BANKS DURING CALENDAR YEAR 1918. *3 Olker&LrnuigJls$et$9inel. CCS.Securities. s1 900 300 6VO 800 700 TOO 600 600 500 500 EXHIBIT C CONDITION OF FEDERAL RESERVE BANKS. 135 AVERAGE DAILY HOLDINGS OF EACH CLASS OFEARNING ASSETS -4 BY FEDERAL RESERVE BANKS DURING CALENDAR YEAR 1919. 1 HI J3Ms®iscotinted. ?'•%& jfccefUuncesJBovujhttti Often^Market\ H i Oth/r&urtungjlssets, incl. U.S.Securities. 1 5: 900 300 €00 €00 POO POO 600 600 500 500 400 400 300 300 200 200 100 100 O 1 1 s I s ! I I I 1 i1 Q N o 26.—Average amounts of earning assets held by each Federal Reserve Bank during 1919, earnings from each class of earning assets, and annual rales of earnings. Average balances for the year of the several classes of earning assets. Federal Reserve Banks. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total—1919. 1918 Purchased bills. United States securities. $142,385,669 726,894,981 193,194,965 126,649,267 94,545,750 87,909,543 209,114,369 68,688,026 41,758,732 83,002,885 52,666,018 81,387,347 350, 281, 581, 147, 686, 038, 457, 939, ,682, ,810, ,366, $18, 216,892 74, 103,968 23, 262,740 20, 388,887 9, 206,479 11, 288,704 35, 002,957 15, 288,098 8, 677,696 17, 960,085 10, 132,800 10, 523,781 1,908,197,552 1,140,053,148 325,231,333 288,422,390 254,053,087 128,232,322 Discounted bills. Municipal warrants. $1,410 1,410 350,630 Total. $185, 952,688 879, 280,644 218, 038,952 191, 186,028 111, 439,054 107, 237,760 293, 574,699 96, 915,514 71, 118,910 108; 773,706 65; 165,257 158; 800,170 2,487,483,382 1,557,058,490 CO Earnings from— Discounted bills. Purchased bills. $6,003, 29,935, 7,987, 5,341, 4, 3,735, 8,915, 2,918, 1,829, 3,888, 2,443, 3,667, $1,077,691 3,326,839 67,019 1,882,985 351,418 367.338 2,141,789 564,495 882,564 340,875 113,397 2,870,368 80,768,144 48,343,852 13,986,778 11,939,786 o H O H W ft i W o 5 Average rates of earnings o n - Earnings from— Federal Reserve Banks. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City... Dallas San Francisco. Total—1919.. 1918.. United States securities. $369, 1,888, 495, 450, 185, 228, 736, 320, 213, 405, 229, 238, 5,761,300 3,828,801 Municipal warrants. 885 85 14,222 Total. Discounted bills. Purchased bills. MuniciUnited pal States securities. warrants. $7,450,400 35,151,247 8,550,651 7,675,078 4,636,664 4,331,414 11,793,857 3,803,369 2,925,526 4,635,114 2,786,283 6,776,704 Per cent. 4.21 4.12 4.13 4.22 4.34 4.25 4.26 4.25 4.33 4.68 4.64 5.41 Per cent. 4.25 4.25 4.24 4.27 4.57 4.57 4.33 4.36 4.27 4.36 4.79 4.29 Per cent. Per cent. 2.03 2.55 2.13 2.21 2.01 5.00 2.03 2.10 2.10 2.46 2.26 2.26 2.27 Per cent. 4.01 4.00 3.92 4.02 4.16 4.03 4.02 3.92 4.11 4.26 4.28 4.26 4.23 4.30 4.14 5.00 4.06 4.04 4.12 100,516,307 64,126,661 4.24 2.26 2.99 Total. g e N o . 27.—Average rates (per cent) of earnings on total earning assets for each Federal Reserve Bank, by months, during the calendar year 1919. Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total—1919. 1918. January. February. March. April. May. June. July. August. 3.97 3.91 4.01 4.08 4.18 4.19 4.10 4.02 4.03 4.33 4.34 4.33 3.95 3.09 3.98 4.06 4. i f 4.07 4.09 3.92 4.08 4.33 4.42 4.29 3.92 3.96 3.96 3.99 3.96 4.01 4.07 3.95 3.88 4.26 4.36 4.35 3.92 3.93 3.92 3.96 4.17 3.99 4.00 3.88 4.08 4.36 4.33 4.30 3.95 3.93 3.87 4.00 4.15 3.97 4.00 3.79 4.04 4.22 4.28 4.27 3.96 3.96 3.87 3.99 4.13 3.96 4.03 3.81 4.02 4.33 4.37 4.23 3.96 3.93 3.81 3.95 4.13 3.96 3.99 3.87 4.07 4.24 4.15 4.22 3.92 3.96 3.78 3.90 4.09 3.90 3.85 3.74 3.87 4.07 4.11 4.14 4.04 3.75 4.03 3.81 4.02 3.86 4.01 4.07 3.99 4.29 4.01 4.20 3.98 4.31 3.93 4.27 Septem- October. Novem- December. ber. ber. Total, 1919. 3.78 3.81 4.07 3.91 3.73 3.85 4.04 4.21 4.14 4.23 3.96 3.90 3.77 3.90 4.05 3.99 3.93 3.87 4.08 4.11 4.11 4.19 4.13 4.21 4.02 4.15 4.15 4.11 4.16 4.08 4.20 4.22 4.20 4.23 4.30 4.37 4.22 4.27 4.30 4.27 4.32 4.17 4.52 4.44 4.32 4.43 4.01 4.00 3.92 4.02 4.16 4.03 4.02 3.92 4.11 4.26 4.28 4.26 3.91 4.21 3.95 4.13 4.16 4.19 4.29 4.14 4.04 Total, 1918. 4.02 3.97 4.19 4.14 4.29 4.17 4.19 4.17 4.45 4.35 4.30 4.41 4.12 w N o . 28.—Statement showing condition of each Federal Reserve Bank on Dec. 81, 1919. RESOURCES. h) [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 3o according to methods used in the compilation of the Board's weekly statement.] r X Boston. W Philadelphia. New York. I—i Gold bullion and coin Gold certificates (including clearing-house certificates) Gold and gold certificates Gold settlement fund, Federal Reserve Board Gold with foreign agencies 34,350,523.48 9,586,375.44 $7,959,000 34,351,000 9,586,000 14,976,859.68 48,194,795.30 $154,234,000 14,977,000 48,195,000 Total gold held by banks Gold with Federal Reserve Agents. Gold redemption fund 73,510,970.00 26,342,440.00 51,896,000 73,511,000 26,342,000 306,756,215.00 25,000,000.00 217,406,000 306,756,000 25,000,000 Total gold reserves Legal-tender notes (including clearing-house certificates) Silver certificates (including clearing-house certificates) Silver coin Legal-tender notes, silver, etc $4,310,070.00 3,649,000.00 151,749,000 1,940,311.00 1,995,738.00 100,568.00 Total reserves.. Member banks' collateral notes, secured by Government war obligations.. Other discounted bills secured by Government war obligations Bills discounted, secured by Government war obligations Member banks' collateral notes, secured otherwise than by Government war obligations Other discounted bills secured otherwise than by Government war obligations and unsecured Bills discounted, all other Bills bought in open market Total bills on hand., $93,534,518.73 60,699,240.00 w $55,340.00 1,138,700.00 31,678,751.93 10,505,616.91 \, 948,165.00 !, 448,460.00 $1,194,000 31,679,000 10,505,000 43,378,000 88,948,000 8,449,000 140,775,000 549,162,000 4,037,000 46,194,000 589,000 155,786,000 595,356,000 141,364,000 425,496,832.83 136,593,009.62 124,529,000 o II 1-3 t—i O 3 o 447,000.00 109,565.00 32,546.05 43,770,842.00 2,221,257.00 201,551.50 54,582,400.00 69,946,815.70 1 87,908,591.66 86,541,067.11 174,450,000 562,090,000 1 112,154.66 228,713,445.79 63,397,695.36 18,648,660.54 63,610,000 18,649,000 206,688,000 202,902,609.54 35,405,303.29 228,713,000 202,903,000 993,706,000 5,177,538.86 35,405,000 5,177,000 215,032,000 CD N o . 28.—Statement showing condition of each Federal Reserve Bank on Dec. 31, 1919—Continued. RESOURCES—Continued. Boston. United States Government bonds United States Victory notes One-year certificates of indebtedness (Pittman Act). Other certificates of indebtedness United States certificates of indebtedness $539,400.00 New York. $589,000 21,436,000.00 369,000.00 $1,256,800.00 $1,257,000 50,000.00 59,276,000.00 8,445,500.00 50,000 21,805,000 $1,384,900.00 $1,385,000 30,280,000.00 407,000.00 67,721,000 12,000 Total earning assets. Philadelphia. 30,687,000 1,062,734,000 247, 104, 000 o H Bank premises Due from foreign banks National-bank notes Federal Reserve notes of other Federal Reserve Banks Unassorted currency Transit items Checks and other cash items Exchanges for clearing house Deferred items, Treasurer United States Uncollected items and other deductions from gross deposits Five per cent redemption fund against Federal Reserve bank notes Other resources: Reimbursable expenditures— War-loan expenses War Finance Corporation 1,102,826.56 191,518.60 5.64 Deferred charges 5,958.41 333.12 69,407.42 New building account United States Liberty loan bonds held against participation certificates 500,000.00 500,000 O 1,072,000 ), 055,000 2,900,000.00 977,835.29 6,985.91* 17,870.59 38,910.83 ',,900,000 1,475,000.00 106,576.83 40,650.00 92,971,000 1,475,000 117,805.33 11.60 W 3,246.00 o 523.01 298.32 50.03 277,149.43 1,454.32 w 132,000.00 6,171,000.00 71,597,476.61 6,330,921.60 8,739,332.58 189,140,539.09 15,889,091.99 38,642,925.19 575,373.52 85,424,000 1,071,800.00 3,994,000 4,666,000-00 73,237, 200.55 132, 519.66 4,223, 644.32 11,432.50 Nickels and cents Overdrafts—member banks 3,994,081.72 1,141,326.31 H 480, 000.00 600, 000.00 6,751, 000.00 Liberty bonds—unpaid installments due from employees Difference account 1,103,000 All other resources Total resources 280,000 1,189,000 899,000 472,697,000 1 916,228,000 483, 813, 000 Gold bullion and coin Gold certificates (including clearing-house certificates) Gold and gold certificates Gold settlement fund Federal Reserve Board Gold with foreign agencies $5,346,000 43,848,000 10,768,000 25,201,328.28 6,434,690.37 $2,420,000 25,201,000 6,484,000 19,333,518.51 4,727,527.61 $8,413,000 19,333, 000 4,728,000 128,794,225.00 1,872,462.24 59,962,000 128,794,000 1,872,000 39,998,970.00 7,196,777.49 34,055,000 39,999,000 7,197,000 63,503,220.00 7,940,425.13 82,474,009 63, 503, 000 7,941,000 595,288.00 109,493.00 8,089.45 Total reserves Member banks 7 collateral notes, secured by Government war obligations.. Other discounted bills secured by Government war obligations . Sills discounted secured by Government war obligations Member banks' collateral notes, secured otherwise than by Government war obligations . . Other discounted bills secured otherwise than by Government war obligations and unsecured Sills discounted, all other . Total bills on hand. United States Government . bonds.. United States Victory notes 103,918,000 163,325.00 117,580.00 709,806.30 713,000 190,000 990,000 191, 341, 000 81,441,000 104,908,000 67,520,380-00 13,986,311.34 114,525,000 1 O 'A O 1 61,832,680.00 4,558,955.09 81 506 000 66,392,000 113,000.00 150,000.00 635,000.00 49,878,647.04 23,345,584.34 26,025,232.73 1 w 48,606,679.40 49,992,000 48,606,000 16,404,904.82 833,400.00 10,250.00 213,123,000 8S4,000 10,000 1,234,300.00 300.00 . . . . .. 81,251,000 122,000.00 68,229.00 110.55 101,361,120.00 13,164,365.85 ... Bills bought in open market $1,930 767.62 6,482,040.00 43,848,018.81 10,768,257.35 190,628,000 . X M w NDITIOl Total gold reserves Legal-tender notes (including clearing-house certificates) Silver certificates (including clearing-house certificates) . Silver coin . ... Legal-tender notes, silver, etc $459,945.00 1,959,780.00 $2 667 677.50 2,677,920.00 Total gold held by banks Gold with Federal Reserve agents Gold redemption fund Atlanta. Richmond Cleveland 23,496,000 16,405,000 121 407,000 1,235,000 26,660,000 16,639,000 16,639,000.16 I 375,300.00 3,900.00 109,691,000 375,000 4,000 W w No. %S.—Statement showing condition of each Federal Reserve Bank on Decfjl, 1919—Continued. RESOURCES—Continued. Cleveland 1284,000.00 23,299,000.00 One-year certificates of indebtedness (Pittman Act) Other certificates of indebtedness United Stales certificates of indebtedness 237,550,000 Total earning assets 894,683.73 1 270 055.00 10,230.00 2,176,355.00 3,185,787.00 67,974,177.20 21,122.78 7,870,166.85 1,190,000.00 1,122,000.00 O t h e r resources: Reimbursable expenditures— W a r - l o a n expenses W a r F i n a n c e Corporation Deferred charges ... . Nickels a n d cents .. Overdrafts m e m b e r b a n k s . . . . . . . . . . . All other resources . . . . . . . New building a c c o u n t . . D i v i d e n d a c c o u n t , i n c l u d i n g p r e m i u m ' o n s u r r e n d e r e d stock Total resources . . Atlanta. #12,260,000.00 $23,583,000 Bank premises . . . . National bank notes Bank notes of other Federal Reserve Banks Federal Reserve notes of other Federal Reserve Banks Unassorted currency Transit items Checks and other cash items TCxchfvngftS far ^tearing honsA , , . Domestic transfers purchased Uncollected items and other deductions from gross deposits Five per cent redemption fund against Federal Reserve bank notes Difference a c c o u n t to Richmond. 895,000 83,698,000 1,122,000 328,957.01 1,428.97 1,970.09 723.76 1,376.15 39,976.71 392.19 280,236.67 524,024.50 113,250.00 35,000.00 376,370.00 4,217,494.00 84 182,455.68 154,714.81 5,113,094.03 643,300.00 $15,664,000.00 1 846 00 $12,260, 000 $15,666,000 134,902,000 125,736,000 524,000 94, 193, 000 643,000 514,860.47 486,926.88 367,700.00 449,700.00 1,278,455.00 7,181,806.00 36,319,680.10 67,064.23 2,602,513.91 878,550.00 487,000 48,267,000 878,000 121,786.25 .47 9,269.68 3,088.67 6,170.35 10,049.31 735.60 4,817.48 13.93 557,198. 65 g W O 655,000 1, 078,000 151,000 515,261,000 312,781,000 280,4m, 000 Chicago. Gold bullion and coin Gold certificates (including clearing-house certificates).. Gold and gold certificates Gold settlement fund, Federal Reserve Board Gold with foreign agencies Total gold held by banks Gold with Federal Reserve agents Gold redemption fund Total gold reserves Legal-tender notes (including clearing-house certificates). Silver certificates (including clearing-house certificates)... Silver coin Legal-tender notes, silver, etc Total bills on hand United States Government bonds One-year certificates of indebtedness (Pittman Act) Other certificates of indebtedness United States certificates of indebtedness Total earning assets $237.50 2,756,890.00 $160,000.00 24,021,000.00 $2,099,845.00 6,175,430.00 76,478,739.40 15,627,105.15 $24,181,000 76,479,000 15,627,000 17,887,751.75 6,172,049.99 $2,757,000 17,888,000 6,172,000 4,872,374.56 3,545,645.72 S8,275,000 4,872,000 3,546,000 243,604,230.00 19,533,109.59 116,287,000 243,604,000 19,533,000 61,624, 715.00 6,132,620.00 26,817,000 61,625,000 6,132,000 35,846,605.00 205,448.00 16,693,000 35,847,000 205,000 379,424,000 1,049,900.00 755,524.00 115,019.00 Total reserves Member banks' collateral notes, secured by Government war obligations.. Other discounted bills, secured by Government war obligations Bills discounted, secured by Government war obligations Member banks' collateral notes, secured otherwise than by Government I war obligations Other discounted bills, secured otherwise than by Government war obligations and unsecured Bills discounted, all other Bills bought in open market Minneapolis. St. Louis. 94,574,000 1,164,189.50 176,580.00 1,013,126.00 2,354,000 66,000 96,928,000 53,811,000 18,842,643.67 3,488,669.47 45,068,000 560,010.19 135,941,860.97 379,559,000 4,477,000 32,803,679.36 1,153,400.00 17,068,000.00 170,000.00 o '2,331,000 1 1,120,000.00 32,051,235.84 '6,090,000 % 650,000 S 4 37,047,050.00 8,021,177.23 148,000.00 O O 1,921,000 150,819,000 4,477,100.00 39,612,000.00 176,000.00 48,730.00 14,669.00 1,850.00 381,345,000 143,949,500.00 6,868,814.23 92,650,234.57 52,745,000 50,405, 778.55 32,611,000 32,804,000 110,483,000 1,153,000 39,788,000 17, ',3,824,000 «, 874,000 12,599,452.47 115,561.00 8,480,000.00 51,526,000 12,600,000 86,457,000 115,000 95,052,000 1 s N o . 28.—Statement showing condition of each Federal Reserve Bank on Dec. 81, 1919—Continued. RESOURCES—Continued. Chicago. 2?anfc premises $2,936,149.26 National bank notes... 1 Bank notes of other Federal Reserve Banks Federal Reserve notes of other Federal Reserve Banks Unassorted currency Transit items Checks and other cash items Exchanges for clearing house Domestic transfers purchased Unmatured Government coupons Uncollected items and other deductions from gross deposits Five per cent redemption fund against Federal Reserve bank notes Other resources: Reimbursable expenditures— War-loan expenses War Finance Corporation Furniture and equipment Deferred charges ' Difference account Nickels and cents Overdrafts—member banks United States Liberty loan bonds held against participation certificates Dividend account, including premium on surrendered stock All other resources Total resources.. Minneapolis. St. Louis. $2,936,000 1,151,517.00 60,000.00 5,486,572.17 105,213,721.14 $355, 736.50 747, 310.00 71, 192.00 1,957, 805.00 5,888 ; 621.00 61,374 327. 97 343, 13,019,211. 23 3,460, $356,000 $600,000.00 36,890.00 $600,000 541,385.00 134,500.00 20,415,770.08 195,414.11 1,945,609.22 1,136,265.19 283.18 255. 75 3,570,000.00 111.81 1,888,150.00 28,501,000 1,888,000 672,800.00 73,843,000 673,000 400,350.00 532,481.16 105,203.98 1,252.95 131,700.81 93.26 11,255.50 17,263.35 1.00 . . 7,685.42 2,141.84 6,648.78 113,486.98 1,046.64 24, !fi®> 000 • 400,000 5,069.20 10.75 o 2,850.00 92,353.86 555,000 238,000 237,000 939,049,000 300,912,000 173,506,000 Kansas City. Gold bullion and coin Gold certificates (including clearing-house certificates) Gold and gold certificates Gold settlement fund, Federal Reserve Board Gold with foreign agencies Total gold held by banks G Id with Federal Reserve agents. Gold redemption fund Total gold reserves Legal-tender notes (including clearing-house certificates) Silver certificates (including clearing-house certifiSilver coin Legal-tender notes, silver, etc.. $40,375.00 150,850.00 Total bills on hand San Francisco. $191,000 25,933,000 6,304,000 39,408,970.00 4,374,862.20 8,000 39,409,000 4,375,000 Total. $11,070,025.00 2,283,290.00 $326,500.00 6,143,050.00 25,932,982.00 6,303,370.16 $116,655,301.35 118,137,190.00 17,073,569.26 3,414,325.49 $6,469,000 17,073,000 3,415,000 27,109,565.22 6,040,729. 73 $13,353,000 27,110,000 6,041,000 27,544,580.00 3,711,624.90 26,957,000 27,545,000 129,050,435.00 3,712,000 8,638,655.00 46,504,000 129,050,000 8,639,000 76,212,000 338,743,982.88 131,320,489.22 $234,792,000 338,744,000 131,321,000 1,238,591,300.00 119,396,884.55 704,857,000 1,238,591,000 119,397,000 184,193,000 4,000 167,600.00 72,895.00 228,660.00 49,770,740.50 20,000.00 177,099.60 132,220.00 992,313.50 91,099.00 26,123.25 5,811,954.00 3,378,203.20 Total reserves.. Member banks' collateral notes, secured by Government war obligations Other discounted bills, secured by Government war obligations Bills discounted, secured by Government war obligations. Member banks' collateral notes, secured otherwise than by Government war obligations Other discounted bills, secured otherwise than by Government war obligations and unsecured Bills discounted, all other Bills bought in open market Dallas. 40,815, I 1,197,000 346,000 58,961,000 59,411,000 184,539,000 2,121,806,000 4,474, 907.16 40,624,550.00 472,078.51 45,290,000 5,670, 968.49 42,419, 386.57 18,691, 464.20 O 364,000 38,904,309.30 48,090,000 18,692,000 112,072,000 351,042,994.02 ), 552,000 62,500.00 467,500.00 18,877,031.14 29,877,085. 76 18,940,000 6,421,000 102,558,190.86 6,420,648.92 1,118,885,525.90 2,926,822. 71 '9,376,000 4,737,000 3 ',845,000 76,576,000 . 44 W w 1,469,928,000 9,039,133.34 736,338,287.38 \344,OOO \ 558,000 176,454,000 L 574,103,063.70 745,377,000 574,104,000 19,000 1 No. £8.—Statement showing condition of each Federal Reserve Bank on Dec. 31, 1919—Continued. RESOURCES-Continued. Kansas City. United States Government bonds United States Victory notes 3ne-year certificates of indebtedness (Pittraan Act).. 3ther certificates of indebtedness United States certificates of indebtedness Total earning assets.. $8,867,300.00 450.00 12,820,000.00 2,247,000.00 $8,868,000 $3,966,000.00 San Francisco. $8,966,000 15,067,000 $2,632,450.00 9,065,000 136,007,000 399,000 227,140.00 3,250.00 402,650.00 1,882,346.00 48,180,320.89 1,324,456.08 789,288.35 8,515,395.13 213,594.00 19,300.00 )0,000 242,304.00 29,455.00 4,017,563.00 5,521,980.00 34,854,858.76 177,907.39 2,581,634.50 6,847,502.00 558,000 $26,835,911.00 64,900.00 228,060,000.00 45,143,846.00 3,089,518,000 12,655, 514.56 1,141, 326.31 211,737.81 11.22 12,656,000 4,966, 666.00 675, 927.00 22,423; 655.17 43,673, 835.00 870,291, 290.58 24,865, 374.05 90,512, 000.79 21,259, 162.32 575, 373.52 111.81 54,273,000 665,000.00 $26,836,000 64,000 273,204,000 190,980,000 400,000.00 61,325,000 558,200.00 $2,632,000 11,844,000 .. 77,768,000 399,398.65 Total. 10,880,000.00 963,500.00 9,065,000.00 462,000 Bank premises 461,686.76 Due from foreign banks National bank notes 330,500.00 | Bank notes of other Federal Reserve Banks 17,100.00 j Federal Reserve notes of other Federal Reserve Banks. 788,500.00 | Unassorted currency 2,739,301.00 Transit items 77,800,762.51 ! Checks and other cash items 228,878.16 | Exchanges for clearing house 1,524,324.86 Domestic transfers purchased Deferred items, Treasurer United States CJnmatured Government coupons 83,429,000 Uncollected items and other deductions from gross deposits Five per cent redemption fund against Federal Reserve 18,000 bank notes 957,460.00 Dther resources: Reimbursable expenditures— 407,176.18 |. War-loan expenses War Finance Corporation Liberty bonds—unpaid installments due from employees 5,772.50 ' Dallas. 665,000 1,080,385,000 13,232,610.00 3,854,656.89 2,804.11 39,751.00 13,282,000 O Cost of Federal Reserve currency Furniture and equipment Deferred charses • Diffprpnpe account .... Adjustment a/c subscriptions Fourth Liberty loan Nickels and cents Overdrafts—member banks New building account United States Liberty ]oan bonds held against participation certificates -•.. .... Dividend account, including premium on surrendered stock Profit and loss Suspense A11 other resources ... 46.45 10,278.21 96.94 40,143.08 42,856.28 4,649.54 82,984.41 112,194.92 83,232.69 8,986.70 558.83 12,415.39 789.02 20,680.25 112,194.92 83,233.69 80,911.88 32,903.36 12 415.39 277 149.92 1,040,044.78 106,969.02 43,500.00 372,590.53 7,421.06 21,096.50 7,421.06 21,096.50 Total resources 496,000 360,000 450, 000 297,928,000 199,821,000 431,257,000 6,088,000 6,323 680 000 1 1 LIABILITIES. New York Boston. Capital paid in by members Capital paid in by applicants for membership 5,205,759.33 .17,884,150.00 $22,390,750. 00 . . . . $7,103,900.00 3,600.00 Capitnl paid in Surplus Philadelphia $7 108,000 5,206,000 32,922,051.13 $22,391,000 82,922,000 5,311,335.94 $7,884,000 5,311,000 — U. S. Treasurer—general account: Collected funds Uncollected funds Government deposits Due to jnerribers—reserve account Gold settlement fund—suspense Government transit items .... 117,083,126.15 21,725,206.44 1,123,000 117,083,000 755,951,452. 59 72,964,615.44 -•• 5,188,851.06 4,091,625. 67 1,756,767.83 1,122,752.48 . • 5,848,000 755,952,000 110,541,160.68 23,447,942.14 5,875,753.00 5,189,000 110,541,000 N o . 28.—Statement showing condition of each Federal Reserve Bank on Dec. SI, 1919—Continued. co LIABILITIES-Continued. Boston. All other transit items Deferred availability items Foreign G overnment credits Nonmembcrs—clearing account Cashiers' checks Federal Reserve exchange drafts Federal Reserve transfer drafts , . Other deposits, including foreign Government credits $45,468,617.21 5,277,466.11 3,500.00 149,813.01 32,866.84 379 566.50 Total deductions 200,721,000 976,066,000 247,895,665.00 8,124,500.00 2,500,900.00 126,285,385.00 5,814,600.00 9,677,915.00 1,167,100.00 10,625,400.00 132,099,985.00 10,845,015.00 807,616,000 58,200,000.00 29,052,000.00 200.00 3,527,000.00 260,249.00 3,041,516.00 802,007.42 15,678,039.09 2,157,089.28 H W 28,792,000 54,673,000 1,311,644.06 H O 237,051,000 20,912,000.00 242,303. 70 o 9,359,000 939,715,955.00 20,912,000 I 3,486,814.95 88,358.81 45,396,000 24k, 092,000 . . . $75,632,000 5,783,524. 49 254,717,970.00 Federal Reserve bank notes in actual circulation—net liability 27,569,776.45 11 655 844 36 6,170,350.28 6,843,000 Federal Reserve notes in actual circulation Federal Reserve bank notes outstanding Less: Held by banks and branches $46,308,843.84 $168,870,000 191,243,000 Federal Reserve notes outstanding Less: Held by banks and branches Forwarded for redemption Philadelphia. $95,905,112.17 $67,194,000 Total gross deposits Other liabilities: Profit and loss Earnings: Discount on bills discounted Discount on bills purchased New York. 258,741.65 4,184,193. 99 : : : : : : 32,212.20 W O 313,559.80 16,013.11 565.00 960,715.01 31,281.02 54,406.20 4,779.43 75,543.97 4,087,071.81 876,376.87 18,961,854.00 3,035,886.09 4,560,519.02 959,189.06 Current net earnings Deduct—dividends paid in current year.. 3,210,694.94 15,925,967.91 674,187. 71 3,601,329.96 232,835.41 Net earnings available for dividends, surplus, and franchise tax. Reserved for taxes other than franchise tax Reserved for sundry expenses Self insurance reserve Reserve against undetermined liabilities Depreciation reserve on United States bonds Suspense credits Gold in transit or in custody—withheld for expense account Participation certificates and contract—Liberty loan bonds Unearned discount 3,210,694.94 1,659.51 3,368,494.55 54,495.49 222.57 807,179.11 15,251,780.20 3,637.20 104,375. 00 51,474.12 200,000.00 200,880.00 30,305.45 3,192,092.38 20,130.00 2,737,510.26 4,358,825.13 222,145.92 23,103,828.67 543,500.33 4,347,128.36 292,903. 89 Interest on United States securities. Penalties on deficient reserves Income and expenses—real estate... Discount profit on bills sold Miscellaneous Gross earnings Less current expenses Total Less interest accrued on United States securities. AII other liabilities Total liabilities. 229,188. 74 13,794.65 92,697.48 4,290.39 14,539.92 W s 116,131.00 4,580.85 I 544,462.25 4,136,000 22,560,000 4,054,000 472,697,000 1,916,228,000 483,813,000 §3 W CO No. 28.—Statement showing condition of each Federal Reserve Bank on Dec. Si, 1919—Continued. LIABILITIE S—Continued. Cleveland Capital paid in by members Capital paid in bv applicants for membership Capital paid in Surplus U. S. Treasurer—general account: Collected funds Uncollected funds Government deposits Due to members—reserve account Gold settlement fund—suspense Government transit items All other transit items Deferred availability items Foreign Government credits. Nonmembers—clearing account Cashiers' checks Federal Reserve exchange drafts Federal Reserve transfer drafts Other deposits, including foreign Government credits , 5,859,600.00 129,415,061.66 24,836 625.39 622,632. 79 46,144,272.82 Total deductions $9,583,000 5,860,000 3,799,846.22 $3,425,650.00 2,550.00 $4,392,000 8,800,000 2,839,730.49 1,675,000 129,415,000 71,603,000 5,928,112. 60 173,841.58 25,966.06 208.00 2,805,000.00 2,840,000 62,712,122.52 62,712,000 33,800,592.08 . . . . 1 551 849 08 39,970,579.66 75,828,000 3 542 408. 75 69 642 70 2,917.62 58; 388,305. 76 5,862,338.16 * $3,428,000 2,805,000 2,707,000 58,888,000 30,287,211.48 37,148,000 6,128,000 8,615,000 2,779,000 208,821,000 144,490,000 101,022,000 160,107,820.00 17,355,115.00 1,709,065.00 5,298,000.00 641,600.00 4,108,635.00 488,250.00 19,064,180.00 5,939,600.00 4,596,885.00 . . . 264,738,000 145,765,000 12,216,000.00 w 2 602 586 02 12,498.22 163,501.14 151,704,920.00 22,491,000.00 -•••••- 2,474,263.27 232 728 11 283,801,770.00 Federal Reserve notes in actual circulation Federal Reserve bank notes outstanding Atlanta. 14,392,000.00 1,675,111.23 Total gross deposits Federal Reserve notes outstanding. Less: Held by banks and branches Forwarded for redemption Richmond $9,532,950.00 ! w o 155,511,000 15,777,600.00 w. Less: Held by banks and branches Forwarded for redemption Total deductions 460,010.00 23,500.00 158,050.00 216,300.00 483,510.00 158,050.00 216,300.00 Federal Reserve bank notes in actual circulation—net liability Other liabilities: Profit and loss Earnings: Discount on bills discounted Discount on bills purchased Interest on United States securities Penalties on deficient reserves Domestic transfers bought and sold—net.. Profit on United States securities Miscellaneous 22,007,000 I 15,561,000 12,058,000 252,200.15 178,991.05 94,401.24 2,894,597.08 1,098,596.55 276,400.89 37,365.69 29,362.64 2 350.00 5,775.09 2,101,839.95 188,301.48 115,671.33 61,457.28 2,069,466.98 196,308.42 140,608.60 48,596.56 753.84 6,391.62 4,344,447.94 764,236.86 2,468,023.88 510,661. 72 2,461,372.18 559,059.05 Current net earnings . .. Deduct—dividends paid in current year 3,580 211.08 1,007.85 1 957,362.16 128,811.94 1,902,313.13 101,012.73 Net earnings available for dividends, surplus, and franchise tax.. Reserved for taxes other than franchise tax Reserved for sundry expenses Depreciation reserve on United States bonds Participation certificates and contract—Liberty loan bonds Deferred credit—war loan expenses Unearned discount 3,579,203.23 30,101.94 1,801,300.40 25,583.24 49,378.20 5,402.23 582,891.31 1,828,550.22 19,970.00 20,316.50 63,186.30 1,839.37 9,520.00 260,184.59 4,528,803.42 226,732.80 2,382,558.03 106,576.81 2,235,738.63 135,903.92 Gross earnings Less current expenses Total Less interest accrued on United States securities A11 other liabilities Total liabilities * ! H W M H I O O 84,406.79 3 o 1 1 259,673.32 3 W 4,302,000 2,276,000 2,100,000 515,261,000 812,781,000 280,427,000 No. 28.—Statement showing condition of each Federal Reserve Bank on Dec. 31, 1919—Continued, Or LIABILITIES—Continued. Chicago. $12,347,150.00 Capital paid in by members Capital paid in Surplus United States Treasurer—General account: Collected funds Uncollccted funds . . Government deposits Due to members—reserve account Gold settlement fund—suspense Government transit items Ail other transit items Domestic transfer^ sold Deferred availability items Foreign G overnment credits Nonmembers—clearing account Cashiers' checks Federal Reserve exchange drafts Federal Reserve transfer drafts . Other deposits, including foreign Government credits 9,710,581.44 . . 257,978,903.15 43,258,856.55 1,899,176.02 55 467 389.26 200 000.00 Total deductions Federal Reserve notes in actual circulation 2,589,495.50 $3,073,950.00 $4,064,000 2,689,000 1,576,568.34 775,815.62 350,000 257,979,000 72,282,788. 29 22,401,610.62 3,561.59 30,975,608.33 100,825,000 8,602,992.69 525,711.41 826,704.59 10,000.00 10,000.00 2,319,601.04 2 353 000 72,283,000 53,827,751. 78 6,087,509.78 107,856.45 7,976,836.89 W 1,951 939.52 115,000.00 191,259.44 4,088.25 2,262,000 8,947,000 164,718,955.00 88,442,605.00 30,238,330.00 5,082,225.00 17,589,880.00 1,830,745.00 896,665.00 359,250.00 35,320,555.00 19,420,625.00 1,255,915.00 145,298,000 ===== ft i 70,865,000 181,964,000 535,459,230.00 500,139,000 513,000 53,828,000 14,262,000 68 381 000 369,180,000 $3,074,000 2,320,000 513,187.11 3,397,820.65 348,498.56 199,436.62 1,879.26 53.19 9,976,000 Total gross deposits Federal Reserve notes outstanding . Less: Held by banks and branches Forwarded for redemption Minneapolis $4,064,450.00 $12,847,000 9,710,000 350,003.59 . to St. Louis. w o 87,187,000 Federal Reserve bank notes outstanding Less: Held by banks and branches . 41,289,800.00 16,608,000.00 8,288,000.00 340,000.00 1,109,676.00 87,925.00 Federal Reserve bank notes in actual circulation—net liability Other liabilities: Profit and loss .. » Earnings: Discount on bills discounted Discount on bills purchased Interest on United States securities Penalties on deficient reserves Domestic transfers bought and sold—net Interest earned—bills of lading drafts Miscellaneous 40,950,000 8, W0,000 15,498,000 366,037.28 109,550.80 100,484.16 4,873,548.83 1,404,763.69 486,781.19 26,234.32 81,338.37 1,540,175.19 366,713.57 192,740.99 26,464.85 9,152.96 11,052.95 9,389.02 1,070,128.60 448,447.84 91,894.86 14,565.47 28,629.73 244.02 1,269.03 6 883 719.35 1,421,459.05 2,144,636.58 980,479.74 1,655,179.55 298,477.19 Current net earnings Deduct—dividends paid in current year 5,462,260.30 360,339.61 1,164,156. 84 119,878.48 1,356,702.36 11,173.75 Net earnings available for dividends, surplus, and franchise tax.. Reserved for sundry expenses Depreciation reserve on United States bonds . . Difference account Participation certificates and contract Liberty loan bonds Unearned discount 5,101,920.69 151,495.19 97,571.50 40,296.63 2,850.00 1,393,585.65 1,044,278.36 56,180.04 172,997.00 226.57 1,357,876.11 18,813.39 53,610.82 296,691.41 408,542.58 7;, 153,756.94 380,865.65 1,679,924.18 181,755.28 1,939,327.06 79,271.98 Gross earnings Less current expenses Total Less interest accrued on United States securities All other liabilities Total liabilities 6,778,000 989 049 000 1 Interest received. H o 1 5 1,499,000 1,860,000 800,912,000 178,506,000 00 N o . 28.—Statement showing condition of each Federal Reserve Bank on Dec. 31, 1919—Continued. LIABILITIES—Continued. Kansas City. $4,015,550.00 Capital paid in by members Capital paid in by applicants for membership Capital paid in Surplus 3,957,137.55 United States Treasurer—general account: Collected funds Uncollected funds Government deposits Due to members—reserve account Gold settlement fund-suspense Government transit items All other transit items Domestic transfers sold „ , $4,016,000 3,957,000 2,028,868.33 1,790,000 90,406,000 63,371,988.44 1.0,168,008. 46 29,179,114.99 56,008,696.35 500,000.00 3,470,114. 70 3,749.57 249,940. 45 10. 98 Total deductions Federal Reserve notes in actual circulation $3,421,000 2,029,000 1,879,645. 46 156,554. 78 4,577,547.49 $87,137,950.00 269,150.00 $5,749,000 4,578,000 81,086,823.97 % $87,407,000 81,087,000 d fe g 24,326,178.62 6,634,296.83 2,900,000 63,372,000 117,929,882.55 7,688,511.54 1 907 445 81 25,174,902.17 1,000.35 39,347,000 3,325,526.59 1,575,364.38 985,638.38 20,159. 44 3,673,000 117,930,000 1,889,888,975.08 283,490,824.79 13 056 457 87 508,867,185.17 701,000.35 34,772,000 73,331,914.03 14,240,166.50 12,823,497.92 186,247.26 395,963.07 5,906,000 30,961,000 1,889,889,000 100,978,000 G§ 162,281,000 2,827,943,000 <j 3,724,000 2,043,000 163,678,000 107,662,000 110,555,755.00 Total. 3,434,902.39 237,991.43 6,135. 38 Total gross deposits Federal Reserve notes outstanding Less: Held by banks and branches Forwarded for redemption $5,486,750.00 263,000.00 245,397.19 2 654 949 74 67 758 000 Foreign Government credits Nonmernbers—clearing account Cashiers' checks . . Federal Reserve exchange drafts Federal Reserve transfer drafts Other deposits, including foreign Government credits.... San Francisco. $3,420,700.00 813,785.80 976,044.10 90,406,431.51 11,249,008.19 Dallas. 280,024,435.00 78,644,065.00 c ^ w 806,115,000 ^ 2 w 3,295,789,145.00 O 5,263,450.00 1,203,050.00 3,118,890.00 594,850.00 35,056,575.00 2,506,100.00 263,013,340.00 23,897, 735.00 6,466,500.00 3,713,740.00 37,562,675.00 286,911,075.00 104,089,000 74,930,000 242,462,000 3,008,878,000 Federal Reserve bank notes outstanding Less: Held by banks and branches »!q Forwarded for redemption 22 CD 00 CO Total deductions 19,980,000.00 10,972,400.00 13,200,000.00 268,986,800.00 447,300.00 511,050.00 1,355,095.00 8,472,855.00 23,500.00 447,300.00 511,050.00 1,355,095.00 8,496,355.00 h-l j!$ Federal Reserve bank notes in actual circulation—net *? liability JL Other liabilities: M Profit and loss Earnings: Discount on bills discounted Discount on bills purchased Interest on United States securities Penalties on deficient reserves Commissions Domestic transfers bought and sold— net Profit on United States securities Income and expenses—real estate Discount profits on bills sold Interest earned—bills of lading drafts Miscellaneous Gross earnings Less current expenses Current net earnings \ Deduct—dividends paid in current year Net earnings available for dividends, surplus, and franchise tax Reserved for taxes other than franchise tax Reserved for sundry expenses X W 10,461,000 19,533,000 170 634.53 260,490,000 11 845 000 236,596.93 3,321,585.55 2,041,071.78 156,321.16 241,693.16 64,039.84 1,269,176.88 70,285.50 128,544.13 37,923.67 92,935.89 115,895.16 1,689,866.24 1,923,956.53 126,345.56 33,844.66 48.33 111,689.26 19,412.13 322.47 2.25 42,453,620.61 8,845,003.64 3,304,144.26 411,581.12 48.33 469,004.01 2,350.00 54,406.20 4,779.43 244.02 145,017.29 2,615,473.96 658,069.06 1,622,147.81 595,836.93 3,885,752.83 588,265.23 55,690,198.91 11,247,996.85 1,957,404.90 116,943.77 1,026,310.88 3,297,487.60 U7,392.87 44,442,202.06 1,716,450.88 1,840,461.13 1,026,310.88 19,481.36 1,622.25 3,314,880.47 966.55 2,377.58 42,725,751.18 155,895.29 442,982.01 38,201.29 1 w h1 s o g Interest received. Cn No* 28,—Statement showing condition of each Federal Reserve Bank on Dec. 81, 1919—Continued. LIABILITIES—Continued. Kansas City. Self insurance reserve Reserve against undetermined liabilities Depreciation reserve on United States bonds Difference account Suspense credits Gold in transit or in custody —withheld for expense account Participation certificates and contract Liberty loan bonds Deferred credit—war loan expenses War Finance Corporation Unearned discount Total Less interest accrued on United States securities All other liabilities Total liabilities $220,734.00 San Francisco. Dallas. $240,662.50 Total. $51,474.12 200,000.00 1,433,936.07 41,637.71 39,176.69 $85,656.45 1,114.51 3 192 092 38 400.00 549,091.77 3,823.67 137, 725.42 813,812.31 25,219.37 9,520. 00 3,823.67 8,791,349.98 2,819,522.72 164,385.32 1,429,626.08 112,152. 07 4,455,404.80 113,199.31 60,434,444.02 2,559,393.28 $2,655,000 $1,318,000 $4,342,000 $57,875,000 297,928,000 199,821,000 431,257,000 6,328,680,000 Exhibit D.—INVESTMENT OPERATIONS OF FEDERAL RESERVE BANKS. No. 29.—Bills discounted for member banks during each month in 1919, distributed by maturities, and totals for 1919, 1918, and 1917. PAPER MATURING WITHIN 15 DAYS. X July. January. February. March. April. May. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. $311, 273,713 3,398, 475,347 665, 577,813 194, 140,669 269, 866,081 155, 743,585 295, 547,561 133, 609,519 16, 554,472 82, 872,805 73, 189,260 152, 445,998 $322, 149,332 2,628,995,396 634, 486,873 191, 790,359 266, 088,494 102, 699,669 256, 787, 724 112, 104,716 031,200 76, 546,682 79, 970,053 154, 337,332 $320, 114;049 2,613,267,364 829, 649,998 240, 864,416 323, 231,765 137, 792,237 332, 880; 925 177, 244,541 20, 699,576 108, 498,591 94, 351,851 163, $436,840,788 2,644, 177,339 906, 514,792 221, 085,899 350, 133,113 143, 507,225 341, 147,153 192, 518,199 72, 076,398 125, 176,472 106, 725, 726 173, 460,437 $419, 500,722 4,026,657,505 942, 806,595 234, 154,805 356, 051,299 158, 127,833 396, 959,732 200, 850,120 444,565 132; 642,066 120. 603,080 172, 133,515 $324,455,859 3,052,318,144 1,076,377,278 216,488,479 386,520,481 152,629,857 368,517,225 165,035,232 36,693,625 112,788,027 105,568,044 142,068,912 $353,077,945 3,909,040,887 1,028,780,503 279,197,860 405,606,197 170,558,544 345,285,844 138,108, 763 26,345, 775 98,405,520 92,712,166 117,296,204 Total... Per cent 5,749,296,823 7.6 4,837,987,830 6.4 5,362,279,921 *7.0 5, 713,363,541 7.5 7,237,931,817 9.5 6,139,461,173 8.1 6,962,415,208 9.2 Federal Reserve Bank. June. W w H o 3 W Xfl en No. £9.—Bills discounted for member banks during each month in 1919,'distributed by maturities, and totals for 1919, 1918, and 1917—Continued. 00 PAPER MATURING WITHIN 15 DAYS-Continued. September. August. Federal Reserve Bank. October. November. Boston New York.... Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. $217,863,707 3,483,588,766 920,489,149 266,846,514 369,532,334 171,855,326 357,850,380 144,315,176 37,332,607 96,168,135 89,309,602 124,111,221 $283, 850,412 3,460, 922,800 1,001, 506,921 289, 118,643 328, 061,052 195, 965,443 320, 726,014 186, 915,887 55; 354,335 119, 635,335 105, 412,808 135, 785,568 $336, 369,850 4,439; 070,914 1,142, 672,864 291, 611,582 304, 667,490 183, 856,237 341, 469,716 206, 084,642 76, 927,602 149, 768,912 125, 978, 562 161, 048,024 $352, 813,001 4,321, 518,142 609, 362,351 266, 143,965 249, 647,419 147, 354,424 352, 411,768 163, 011,260 Total... Per cent 6,279,262,917 6,483,255,818 7,759,526,395 0, 754,179 8.2 8.5 10.1 9.0 63, 993,209 112, 994,512 65, 606,885 155, 897,243 December. Total. Per cent. $453,306, 413 $4,131,615, 791 3,791,687, 787 41,769, 720,391 803,063,687 10,561,288,824 290,850,077 2,982,293,268 349,676,464 3,959,082, 789 136,599,842 1,856,690,232 358,299,033 4,067,883,075 152,818,631 1,972,614,686 56,046,873 551, 500,237 114,929,515 1,328,427,572 54,457,932 1,113, 885,949 184,613,854 1,836, 882,916 5.4 54.9 13.9 3.9 5.2 2.5 5.3 2.6 .7 1.7 1.5 2.4 6,746,350,108 76,131,885,730 8.9 100.0 PAPER MATURING AFTER 15 DAYS BUT WITHIN 30 DAYS. January. Federal Reserve Bank. $1,926,086 New York Philadelphia Cleveland Richmond Atlanta Chicago 1,579,894 728,240 - 2,144,894 2, 401,932 1,627,618 - 2,117,189 ; February. March. April. $1,683,158 1,295,504 439,500 448,229 2,122, 726 1,020,676 $3,017,752 $3,792,930 1,566,077 1,313,404 387, 780 664,404 532,669 408,246 544,188 629,767 1,113,872 1,081,706 3,043,174 2,098,344 2,362,587 2,332,746 1,029,477 1,819,328 1,086,816 693,037 933,947 978,182 2,362,395 1,903 002 5, 730,842 June. July. $1,015,736 $3,343,399 1,178,225 2,370,413 $5,334,420 4,577,975 568,286 885,136 2,532,312 906 214 May. 3,740,995 d o 3 s o St. Louis Minneapolis... Kansas City... Dallas San Francisco. 978,898 101,065 726,864 1,509,376 777,429 559,396 85,504 1,051,930 1,241,637 677,203 1,627,630 12,469 1,994,075 858,797 480,143 28,819 2,669,980 757,274 506,431 597,503 1,390,649 1,409,814 844,205 392,384 887,880 65,149 2,907,028 798,975 999,733 2,634,442 311,428 1,308,532 692,576 358,565 Total.... Percent. 16,619,485 4.3 11,318,500 2.9 15,495,509 4.0 16,233,182 4.2 14,286,855 3.7 22,829,119 5.9 23,850,911 6.18 September. October. Federal Reserve Bank. August. 974,319 November. December. Total. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco.. $1,380,099 2,704,162 208,923 1,117,042 2,294,025 1,467,872 1,716,573 1,186,864 150,058 647,053 384,850 549,570 $3,426,776 2,289,110 701,013 3,732,433 4,999,705 3,488,150 8,796,866 4,596,101 2,048,305 2,649,935 2,295,979 1,020,132 $4,651,347 2,800,415 695,106 5,623,856 3,673,499 2,995,011 14,475,872 2,175,644 3,982,504 2,615,616 1,303,652 2,194,037 $8,726,269 8,467,179 6,373,917 5,246,435 4,988,766 3,513,553 19,243,671 3,120,522 2,603,369 5,657,075 713,695 2,879,245 $10,450, 741 14,671,908 6,520,128 8,438,106 7,516,022 2,953,793 24,833,663 5,864,154 6,711,119 3,981,701 693,886 1,722, 785 $48, 748,713 44,814,266 18,228,212 31,005,664 40,365,868 23,811,510 85,623,232 25,203,353 17,490,438 27,619,603 12,094,902 12,557,657 Total Per cent. 13,807,091 3.6 40,044,505 10.3 47,186,559 12.2 71,533,696 18.5 94,358,006 24.3 387,563,418 W M g Per cent. 12.6 11.6 4.7 8.0 10.4 6.2 22.1 6.5 4.5 7.1 3.1 3.2 O UI o 100.0 > W ui Or CD No. 29.—Bills discounted for member banks during each month in 1919, distributed by maturities, and totals for 1919, 1918, and 1917—Continued. PAPER MATURING AFTER 30 DAYS BUT WITHIN 60 DAYS. Federal Reserve Bank. January. February. March. April. May. June. July. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.... Kansas City... Dallas San Francisco.. $2,970,940 2,257,823 960,042 3,455,681 3,678,795 4,468,260 3,577,377 1,390,901 225,909 3,341], 659 4,920,465 1,774,711 $1,592,828 8,800,937 989,950 3,170,261 3,076,399 2,313,666 1,329,587 801,749 130,484 2,710,888 4,080,668 1,309,320 $1,227,400 9,038,657 376,911 6,252,226 4,445,243 2,020,293 2,771,497 2,099,582 68,854 5,560,392 3,080,663 1,594,910 $10,659,562 2,386,016 613,128 1,818,117 2,656,456 1,921,353 2,326,337 1,355,844 367,445 4,702,539 2,444,017 1,634,744 $2,178,454 6,881,053 713,766 1,455,230 4,181,574 2,104,681 4,079,406 1,122,615 355,533 3,505,382 2,176,409 1,439,511 $10,186,948 15,027,809 742,229 1,776,965 3,599,810 3,318,934 10,359,044 2,398,553 90,145 5,256,395 1,558,013 1,021,519 $7,765,776 15,918,988 434,807 3,834,790 3,507,292 1,760,843 5,260,017 1,970,787 1,077,406 3,082,777 1,235,063 1,791,097 Total Per cent.. 33,022,563 30,306,737 4.2 3.8 38,536,628 4.9 32,885,558 4.2 30,193,614 3.8 55,336,364 7.0 47,639,643 6.0 Federal Reserve Bank. Boston New York... Philadelphia. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. August. $2,927,287 4,396,247 466,695 1,879,218 4,348,580 3,831,614 7,230,744 2,114,860 358,464 September. $5,852,537 5,151,462 766,374 3,925,592 5,827,650 6,279,124 21,831,576 6,540,559 7,005,187 October. $9,544,049 7,592,438 1,879,378 6,452,956 3,645,788 8,279,001 31,524,480 3,017,904 9,823,940 November. $17,962,540 39,225,540 9,227,538 8,649,464 2,819,501 9,290,337 25,938,586 4,787,584 13,575,620 December. $17,770,705 23,069,837 15,312,829 10,654,436 9,272,018 4,679,447 52,363,232 9,914,246 10,863,933 Total. $90,639,026 139,746,807 32,483,647 53,324,936 51,059,106 50,267,553 168,591,883 37,515,184 43,942,920 d 3 W Per cent. 11.4 17.7 4.1 6.7 6.5 6.4 21.3 4.7 5.6 w o Kansas City D alias San Francisco 2,825,792 1,709,359 1,805,711 9,301,589 4,617,276 1,788,269 6,056,407 4,397,527 4,322,909 9,678,368 1,570,153 4,520,694 8,472,976 1,076,702 3,379,533 64,495,164 32,866,315 26,382,928 Total... Percent 33,894,571 4.3 78,887,195 9.9 96,536,777 12.2 147,245,925 18.6 166,829,894 21.1 791,315,469 8.2 4.1 3.3 100 PAPER MATURING A F T E R 60 DAYS BUT WITHIN 90 DAYS. February. March. Boston , New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City.. Dallas San Francisco. $54, 788,341 65, 744,893 16, 455,153 4 232,889 7, 341,516 7, 897,279 6, 923,724 3, 176,136 116,878 4, 796,324 6, 397,090 6, 108,445 $30, 315,141 28, 679,130 4,686,953 2, 187,744 5,352,147 2 570,483 3,669,099 2, 058,393 90,708 5,304,304 4 415,744 5,379,706 $7,048,939 7,842,205 2,576,991 1,608,741 4,415,977 3,079,190 4,279,678 3,998,507 88,589 5,693,841 3,296,062 5,084,048 $53,946,779 30,170,926 8,245,933 1,138,660 8,098,993 4,303,870 5,410,851 2,224,259 166,943 5,630,997 4,066,996 2,874,525 $21,235,255 32,332,152 1,425,998 3,086,761 5,140,977 3,530,008 7,803,855 2,397,620 231,657 3,716,872 2,671,215 3,388,193 $25,023,505 33,070,504 2,048,866 2,405,899 5,509,624 3,159,608 9,015,965 2,476,344 128,465 7,195,442 1,666,860 2,584,692 $39,878,469 59,935,257 2,290,625 2,042,544 8,032,475 3,945,029 8,814,698 3,976,974 401,712 5,549,924 2,881,922 2,434,611 Total... Per cent 183,978,668 10.6 94,709,552 5.4 49,012,768 2.8 126,279,732 7.3 86,960,563 5.0 94,285,774 5.4 140,184,240 8.1 April. May. January. Fe&eral Reserve Bank. June. July. 9 O 1 No. 29,—Bills discounted for member banks during each month in 1919', distributed by maturities, and totals for 1919,1918, and 1917—Continued. o to PAPER MATURING AFTER 60 DAYS, BUT WITHIN 90 DAYS—Continued. Federal Reserve Bank. August. September. October. November. December. Total. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis-.. Kansas City... Dallas San Francisco. $23,201,630 38,013,193 1,610,519 3,873,096 6,742,023 4,177,461 9,980,359 4,709,705 227,696 3,478,511 2,248,984 4,218,177 $20,921,341 27,337,722 740,670 3,633,588 5,994,198 6,889,027 25,142,848 10,238,945 2,151,011 6,547,116 3,889,188 5,038,392 $35,207,810 22,959,777 6,544,409 6,101,096 7,041,742 10,665,295 20,494,312 8,980,617 8,994,455 8,868,547 4,692,743 6,871,693 $47,417,477 96,995,285 58,672,986 12,017,208 6,613,393 13,830,711 47,562,740 9,116,512 6,954,259 12,461,958 1,846,114 9,637,718 $45,336,452 52,051,477 19,123,633 16,559,789 8,463,033 6,895,534 68,069,137 10,733,094 20,606,340 13,567,264 2,418,066 7,130,299 $404,321,139 495,132,521 124,422,736 58,888,015 T78,746,098 JO, 943,495 217,167,266 64,087,106 40,158,713 82,811,100 40,490,984 60,750,499 Total.... Per cent. 102,481,354 5.9 118,524,046 6.8 147,422,496 8.5 323,126,361 18.6 270,954,118 15.8 1,737,919,672 Per cent. 23.3 28.5 7.1 3.4 4.5 4.1 12.5 3.7 2.3 4.8 2.3 3,5 o 100.0 AGRICULTURAL AND LIVE-STOCK PAPER MATURING AFTER 90 DAYS. Federal Reserve Bank. Boston New York.... PhiladelphiaCleveland Richmond-.-. Atlanta Chicago St. Louis January. $318 1,326 1,500 67,729 98,494 780,222 45,581 February. March. $600 17,087 April. May. $1,409 June. July. $20,896 $459 10,457 $3,737 1,600 14,313 397,366 678,226 1,645,288 197,686 5,294 335,623 875,419 847,746 245,601 3,972 229,909 1,014,345 553,005 138,191 $5,075 35,953 111, 993 568,258 53,611 71,439 178,387 301,280 1,022,100 156,681 28,783 277,966 386,203 998,589 54,442 o Minneapolis... Kansas City... Dallas San Francisco. 318,751 4,602,020 4,061,704 1,487,081 152,084 1,886,268 2,703,593 1,096,070 111,607 3,158,890 2,258,129 963,148 318,940 5,968,473 3,188,842 1,407,891 1,730,061 6,105,834 3,577,635 2,092,902 884,480 8,942,870 2,921,230 1,929,921 417,155 3,575,044 2,064,050 1,344,063 Total Percent. 11,464,726 9.1 6,612,895 5.3 8,239,348 12,639,627 10.0 16,460,207 13.1 16,999,100 13.6 9,345,071 7.5 August. September. X Federal Reserve Bank. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City.... Dallas San Francisco.. $5,889 $618 2,472 82,986 313,340 838,712 93,678 123,973 958,994 987,057 809,252 Total Percent.. 4,216,353 3.4 October. November. $2,977 929 1,000 16,905 38,669 166,982 1,512,678 73,208 292,157 1,827,582 1,096,761 417,133 $43,492 1,500 277 19,343 7,554 54,478 3,266,634 27,213 884,670 3,869,562 859,003 612,016 129,606 11,583 44,011 3,026,490 74,886 1,679,156 5,142,978 934,586 791,012 5,443,693 4.3 9,645,742 7.7 11,838,214 9.5 December. $14,078 15,265 4,000 52,359 25,323 20,021 1,986,967 49,489 1,515,037 6,204,679 955,405 1,537,842 12,380,465 9.9 Total. $73,577 77,149 11,852 344,486 1,689,048 4,064,792 17,046,689 1,210,267 8,428,071 52,243,184 25,607,995 14,488,331 Per cent. W M w 3 0.1 .1 9 1.3 3.2 13.6 1.0 6.7 41.7 20.4 11.6 O g 125,285,441 100.0 g CO No. 29.—Bills discounted for member banks during each month in 1919, distributed by maturities, and totals for 1919, 1918', and 1917—Continued. TOTAL BILLS DISCOUNTED. Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total—1919.... 1918.... 1917.... Percent—1919 ^1918 1917 January. February. March. April. May. June. July. August. September. $370,959,398 3,468,059,283 683,722,748 203,974,133 283,356,053 169,835,236 308,946,073 139,201,035 17,317,075 96,339,672 90,077,895 162,593,664 $355,740,459 2,667,770,967 640,608,351 197,596,593 276,675,719 108,716,487 263,047,705 115,577,865 12,489,980 87,500,062 92,411,695 162,799,631 $331,408,740 2,631,731,390 832,991,680 249,341,010 335,314,546 144,222,477 341,888,147 185,126,941 20,981,095 124,905,789 103,845,502 171,806,857 $505,241,468 2,678,055,774 916,038,257 224,701,226 363,264,872 151,937,979 350,861,112 197,127,063 72,958,545 144,148,461 117,182,855 179,884,028 $443,930,167 4,067,069,831 945,479,028 239,824,981 368,133,803 165,527,564 412,850,676 . 205,165,544 81,152,465 147,379,968 129,872,524 179,446,505 $363,010,170 3,102,797,327 1,079,576,619 221,758,343 398,298,284 161,886,830 394,470,822 171,043,610 37,861,864 137,089,762 112,513,122 148,604,777 $406,060,347 3,989,474,707 1,032,074,221 285,964,302 419,908,215 178,184,975 363,654,559 146,827,157 28,553,476 109,922,797 99,585,777 123,224,540 $245,378,612 3,528,702,368 922,775,286 273,718,342 382,999,948 181,645,613 377,616,768 152,420,283 38,192,798 104,078,485 94,639,852 131,493,931 $314,051,684 3,495,701,094 1,003,715,978 300,427,161 344,921,874 212,788,726 378,009,982 208,364,700 66,850,995 139,961,557 117,312,012 144,049,494 5,994,382,265 868,229,619 18,326,286 7.6 2.2 .2 4,980,935,514 762,444,698 22,408,604 6.3 1.9 5,473,564,174 754,933,533 26,788,982 6.9 1.9 .3 5,901,401,640 2,172,580,139 50,055,801 7.4 5.5 7,385,833,056 2,993,019,346 91,413,473 9.3 7.5 1.0 6,328,911,530 3,137,225,829 750,269,838 8.0 7.9 8.4 7,183,435,073 3,343,458,151 460,733,354 9.1 8.4 5.1 6,433,662,286 3,762,259,098 220,939,974 8.1 9.4 2.5 6,726,155,257 4,685,139,704 548,164,104 8.5 11.8 6.1 O H 1 tei Federal Reserve Bank. Boston . New York Philadelphia Cleveland Richmond... Atlanta -. Chicago St. Louis Minneapolis . Kansas City Dallas. . San Francisco.. . . . October. November. December. Total, 1919. Total, 1918. Total, 1917. $385,816,548 4,472,425,044 1,151,792,034 309,808,833 319,036,073 205,850,022 411,231,014 220,286,020 100,613,171 171,179,044 137,231,487 175,048,679 $426,922,264 4,466,207,075 683,636,792 292,186,678 264,080,662 174,033,036 448,183,255 180,110,764 88,805,613 145,934,891 70,671,433 173,725,912 $526,878,389 3,881,496,274 844,024,277 326,554,767 374,952,860 151,148,637 505,552,032 179,379,614 95,743,302 147,156,135 59,601,991 198,384,313 $4,675,398,246 42,449,491,134 10,736,435,271 3,125,856,369 4,130,942,909 2,005,777,582 4,556,312,145 2,100,630,596 661,520,379 1,555,596,623 1,224,946,145 1,951,062,331 $1,760,284,933 24,535,538,457 1,833,598,274 1,386,117,996 2,159,845,371 930,130,087 3,265,850,010 1,085,137,254 433,791,800 833,520,562 587,677,766 941,441,337 $350,919,310 6,511,274,920 223,416,008 211,176,106 401,220,685 95,114,744 521,872,103 181,117,652 80,154,716 237,690,768 52,052,600 102,981,206 8 060,317,969 5,903,962,877 2,681,165,854 10.2 14.9 29.9 7 414,498 375 5,154,597,322 3,206,486,771 9.4 13.0 35.7 7,290,872,591 6,215,083,531 937,433,413 9.2 15.6 9.9 79,173,969,730 Per cent, Per cent, Per cent, 1917. 1918. 1919. 5.9 53.6 13.6 3.9 5.2 2.5 5.8 2.7 .8 2.0 1.5 2.5 4.5 61.8 4.6 3.5 5.4 2.3 8.2 2.7 1.1 2.1 1.4 2.4 3.9 72.6 2.5 2.3 4.4 1.1 6.0 2.0 .9 2.6 .6 1.1 w s H T 3 o Ul Total—1919 1918 1917 Per cent—1919 1918 1917. . . . o 39,752,933,847 8,968,990,818 100 100 100 Ul 3 w Ul o\ No. 30,—Bills discounted by each Federal Reserve Bank, distributed by States; also number of banks in each State and number accommodated through the discount of paper during 1919. States. Maine New Hampshire - Rhode Island Connecticut: District No. 1 DistrictNo 2 Number of member Number accombanks modated in each State on during 1919. Dec. 31, 1919. 65 55 48 187 20 57 15 42 46 41 165 14 40 12 Total amount of paper discounted. $77,747,271 99,425,477 53,314,620 4,108,983,608 133,014,312 202,912,958 110,454,312 313,367,270 574 419 41,223,866,583 164 81 115 63 1,115,170,239 212,880,702 245 178 1,328,050,941 23 14 41,369,786 Pennsylvania: District No. 3 DistrictNo 4 574 314 417 144 10,482,184,783 1,712,941,061 Total 888 561 12,195,125,844 439 226 1,324,416,220 New York New Jersey: Disfrirt No 2 Tnfal 72 States. 215 41 161 12 $1,216,159,567 6,908,664 Total 256 173 1,223,068,231 129 53 88 20 263,942,845 5,557,230 182 108 269,500,075 Dfsjf-n'pt N o Q Total 434 341 547,590,970 Illinois: DistrictNo. 7 DistrictNo. 8 380 169 208 93 2,254,681,713 71,573,791 Total 549 301 2,326,255,504 216 63 153 23 273,937,050 45,962,325 279 176 319,899,375 100 61 65 35 1,100,474,774 632,952,518 161 100 1,733,427,292 Indiana: TH<a+rir>f W n 7 Delaware Ohio Total amount of paper discounted. Michigan: DistrictNo.7 District No. 9 Wisconsin: DistrictNo. 7 52 Total Number of member Number accombanks modated in each State on during 1919. Dec. 31. 1919. DistrictNo. 8 Total Missouri: DistrictNo. 8 District No. 10 Total...,..,..., , „., W i w o > Kentucky: District No. 4. District No. 8. Total. 141 29 59,145,705 461,520,385 65 520,666,090 Wyoming West Virginia: District No. 4. District No. 5. 16 110 Total. 126 15 102 170 92 District of Columbia. Maryland Virginia North Carolina South Carolina 29,353,383 46,837,583 Nebraska Colorado Kansas 56 76,190,966 10 68 124 74 92 105,260,815 1,000,475,362 2,195,062,920 356,205,945 427,100,284 Oklahoma: District No. 10. District No. 11. Tennessee: District No. 6 District No. 8 . . . . 578,661,484 256,578,507 108 Total. ; Georgia Florida Alabama : • - • 120 61 109 70 Total Total. 119 46 25 15 47 Total 101 335 179 144 168 46 207 135 255 65 174 80 88 101 26 173 79 124 152,289,846 570,419,991 18,411,910 45,963,050 14,259,534 5,042,339 436,358,614 89,303,884 98,168,831 320 36 235 35 $286,724,555 19,835,586 £ 356 270 306,560,141 H 835,239,991 | Texas. s O New Mexico: District No. 10. District No. 11. Total. X 7,045,882 17,511,220 54 42 24,557,102 655 518 1,144,804,118 o • Mississippi: District No. 6. District No. 8. Louisiana: District No. 6 . . DistrictNo.il. Arkansas Minnesota North Dakota.. South Dakota.. Montana 35 568,548,042 | Arizona: DistrictNo.il. 106,732,880 District No. 12. 167,698,880 Total. 32,536,019 Utah 12,230,968 | Nevada 44,766,987 California Oregon 551,600,277 | Idaho 37,424,551 Washington.. Alaska 589,024,828 Grand total. 5,370,670 6,029,421 11,400,091 22 54 10 311 101 111 123 334,276,321 20,000 42 1 151 50 86 82 1,034,429,134 74,143,102 142,506,562 359,657,791 5,993 79,173,969,730 1 9,066 w W Ul No, 31.—Member banks' collateral notes, also customers' paper secured by Government war obligations (war paper), discounted by each Federal Reserve Bank, by months, during the calendar year 1919, and totals for 1918, Federal Reserve Bank. Boston . . New York. „ Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total—1919 1918 Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond January. February. March. April. May. Members' Customers' paper. collateral notes. Members' Customers' paper. collateral notes. Members' Customers' paper. collateral notes. Members' Customers' paper. collateral notes. Customers' Members' paper. collateral notes. $305,441,850 3,303,157,768 617,370,301 183,103,000 266,933,014 135,331,686 276,499,667 128,158,850 16,478,140 69,864,098 70,948,810 148,384,462 $57,552,105 65,434,147 35,788,437 10,877,844 7,063,780 5,488,116 5,651,524 1,556,204 6,418 315,052 812,410 1,685,136 $317,960,300 2,518,274,955 596,245,257 181,619,800 264,232,811 99,313,600 246,929,273 107,401,737 11,986,700 67,657,823 79,109,964 150,389,070 $31,255,392 40,627,613 20,450,724 7,484,120 5,858,837 1,138,803 2,782,685 966,087 42,031 1,168,513 533,504 . 2,199,766 $317,994,060 2,539,834,662 788,215,567 235,031,600 318,440,638 130,975,650 323,238,826 168,920,450 20,693,700 100,485,139 93,877,680 158,511,026 $9,613,744 23,259,904 18,750,461 8,721,389 4,286,367 920,623 3,551,591 2,857,375 1,125 897,852 339,594 2,121,314 $432,594,700 2,581,314,859 860,065,571 208,522,500 345,869,655 137,352,350 328,750,576 187,029,473 62,047,950 116,228,588 106,263,330 170,402,275 $68,444,366 39,543,639 28,573,304 2,639,169 7,712,417 3,314,616 2,594,409 656,227 1,280 1,470,742 605,811 1,812,714 $414,642,050 3,945,329,542 901,388,419 225,789,200 353,649,227 151,400,675 393,232,013 192,378,989 70,593,800 126,139,850 119,943,750 168,701,200 $22,943,483 43,828,151 18,830,235 4,992,978 5,434,110 2,176,444 2,873,184 1,309,347 241,079 1,112,213 377,088 2,059,524 5,521,671,646 333,892,976 192,231,173 44,614,222 4,641,121,290 261,755,660 114,508,075 138,280,849 5,196,218,998 251,445,794 75,321,339 63,669,906 5,536,441,827 1,768,938,819 157,368,694 37,730,096 7,063,188,715 2,431,571,106 106,177,836 91,934,430 June. July. August. September. October. Members' Customers' collateral notes. paper. Customers' Members' paper. collateral notes. Customers' Members' paper. collateral notes. Members' Customers' collateral notes. paper. Members' Customers' paper. collateral notes. $315,892,288 2,942,788,252 1,015,119,754 207,002,150 378,907,595 $34,540,365 54,166,545 26,915,972 4,417,749 5,745,900 $346,164,950 3,700,706,910 958,011,339 258,371,450 399,873,756 $50,728,823 105,340,085 28,931,497 9,589,447 7,450,766 $210,973,650 3,375,900,068 855,176,865 248,007,050 364,584,337 $24,652,827 50,247,623 26,623,749 9,455,438 7,843,623 $270,424,246 3,282,979,949 928,134,397 267,276,380 321,730,670 $32,126,812 41,329,289 21,821,228 7,232,883 4,357,478 $320,011,100 4,147,487,334 1,045,504,216 257,958,715 300,113,720 $48,616,479 38,337,625 34,599,579 15,914,237 7,417,856 OO o w H o o Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total—1919. 1918 143,179,659 363,861,538 156,768,528 35,443,125 101,286,495 104,749,760 136,795,402 2,036,732 2,178,555 1,439,360 . 4,670 1,326,633 226,336 1,484,346 163,735,433 336,348,458 131,851,909 26,323,275 86,499,064 91,245,130 110,906,890 2,905,538 2,395,150 3,947,165 75,572 1,832,472 258,473 1,494,084 168,999,124 348,490,000 139,488,089 36,971,203 87,107,211 87,873,553 115,991,135 2,177,602 4,220,208 3,187,891 4,958 592,671 218,223 1,995,372 182,040,760 302,664,200 179,143,487 54,050,800 98,807,348 103,036,973 125,533,090 3,137,658 4,321,217 3,356,958 109,588 2,231,991 553,820 1,900,002 160,082,789 314,164,100 191,134,029 71,598,000 113,284,881 124,073,785 139,306,400 3,639,097 5,997,954 2,516,477 1,724,754 2,663,660 590,755 2,204,367 5,901,794,546 2,574,561,810 134,483,163 46,569,980 6,610,038,564 2,391,811,025 214,949,072 77,574,241 6,039,562,285 3,007,485,670 131,220,185 119,847,633 6,115,822,300 4,021,888,543 122,478,924 56,008,637 7,184,719,069 5,129,044,297 164,222,840 179,237,274 Federal Reserve Bank. November. December. Members' Customers' paper. collateral notes. Customers' Members' paper. co llateral no tes. Total. Members' collateral notes. Grand total. Customers' paper. 1919 1918 o GO Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total—1919. 1918. $340,468,760 4,077,121,327 550,862,817 240,665,940 245,872,700 135,408,300 330,954,550 149,007,353 62,095,885 99,889,664 65,087,719 136,547,100 $37,427,227 156,816,670 91,297,964 8,346,251 7,656,906 3,043,184 8,645,278 4,963,899 889,773 3,400,507 130,339 4,941,644 $445,343,550 3,321,651,381 708,969,108 261,223,690 345,054,060 128,959,975 340,611,100 130,880,580 49,327,350 101,055,325 53,925,419 158,271,500 $30,340,410 58,414,777 32,334,764 9,197,134 6,510,418 2,899,987 4,089,135 6,325,716 1,269,847 2,943,265 277,425 2,321,457 $4,037,911,504 39,736,547,007 9,825,063,611 2,774,571,475 3,905,262,183 1,736,780,001 3,905,744,301 1,862,163,474 517,609,928 1,168,305,486 1,100,135,873 1,719,739,550 $448,242,033 717,346,068 384,917,914 98,868,639 77,338,458 32,878,400 49,300,890 33,082,706 4,371,095 19,955,571 4,923,778 26,219,726 $4,486,153,537 40,453,893,075 10,209,981,525 2,873,440,114 3,982,600,641 1,769,658,401 3,955,045,191 1,895,246,180 521,981,023 1,188,261,057 1,105,059,651 1,745,959,276 6,433,982,115 4,350,206,812 327,559,642 251,041,418 6,045,273,038 5,619,803,199 156,924,335 141,165,494 72,289,834,393 32,142,405,711 1,897,445,278 1,247,674,180 74,187,279,671 $1,550,310,782 22,254,444,699 1,504,636,670 1,060,687,150 1,625,616,690 631,032,371 2,139,330,599 777,982,270 242,826,420 475,659,106 447, 833,088 679,720,046 33,390,079,891 o fed No. 32.—Total amounts of member banks' collateral notes discounted by each Federal Reserve Bank by months, during the calendar year 1919 and totals for 1918. Federal Keserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta , Chicago St. Louis Minneapolis Kansas City Dallas San Francisco.... Total—1919. 1918. January. February. March. April. May. June. $305,456,850 $318, 180,300 3,303,157,768 | 2,518, 274,955 617,370,301 596, 245,257 183,103,000 181, 619,800 267,642,514 264, 240,311 136,094,486 99, 378,600 277,595,494 248, 778,943 128,783,850 107, 401,737 16,521,340 11, 991,700 82,266,225 76, 185,408 72,763,360 79, 772,964 148,390,462 150, 389,070 $318,157,060 2,539,834,662 788,215,567 235,031,600 320,365,638 131,007,650 326,281,497 169,020,450 20,693,700 108,234,293 94,206,180 158,549,026 $433,310,700 2,581; 314,859 860, 165,571 208, 867,500 347, 183,655 137, 412,350 332, 077,658 187,459,473 72, 047,950 124, 433,372 106, 658,330 1 170,,'567,275 $416,101,750 3,945,329,542 901,433,419 225,939,200 354,590,227 152,142,714 393,388,763 192,563,989 77,350,800 132,430,812 120,447,836 169,207,450 $318,016,288 2,942,788,252 1,015,182,754 207,028,350 381,802,095 144,401,272 365,276,038 156,953,528 36,643,125 111,909,501 105,270,903 136,795,402 $347,476,450 3,700,706,910 958,324,339 258,371,450 402,233,856 165,364,156 340,448,458 132,051,909 26,323,275 96,031,629 92,562,267 111,036,890 5,539,145,650 481,942,377 5,209,597,323 310,478,386 5,561,498,693 1,799,119,597 7,080,926,502 2,502,693,369 5,922,067,508 2,660,201,285 6,630,931,589 2,554,685,811 4,652,459,045 306,662,397 July. w fed I Federal Reserve Bank. Total, 1919. Total, 1918. August. September. October. November. !~,Boston §§NewYork ooPhiladelphia I Cleveland O Richmond Atlanta I Chicago ^ S t . Louis Minneapolis Kansas City Dallas San Francisco.... $211,978,650 3,375,900,068 855,179,865 248,373,550 367,508,837 169,635,483 352,905,000 139,782,589 37,288,203 95,813,154 89,184,710 116,314,135 $271,217,246 3,282,979,949 928,159,897 267,498,380 325,449,670 184,779,260 303,071,310 179,309,487 54,165,800 118,466,305 104,993,473 125,533,090 $321,659,100 4,147,487,334 1,045,507,216 258,145,715 302,563,220 161,227,059 315,742,761 192,024,029 73,551,148 147,196,319 125,827,785 139,436,400 $341,724,844 4,077,121,327 550,865,817 240,665,940 246,322,700 136, 818,300 332,257,730 149,024,353 62,391,415 110,245,857 65,456,369 136,762,100 $445,704,705 $4,048,983,943 3,321,651,381 39,736,547,007 708,969,108 9,825,619,111 261,436,690 2,776,081,175 346,511,607 3,926,414,330 131,734,975 1,749,996,305 340,937,100 3,928,760,752 131,830,580 1,866,205,974 50,224,094 539,192,550 113,720,115 1,316,932,990 54,286,619 1,111,430,796 158,861,500 1,721,842,800 $1,346,143,638 21,810,005,187 1,329,253,568 993,593,567 1,538,747,984 629,504,816 2,569,555,091 765,663,931 276,916,606 619,134,694 459,888,553 669,380,595 Total-1919 1918, 6,059,864,244 3,063,893,999 6,145,623,867 4,058,567,522 7,230,368,086 5,182,814,264 6,449,656,752 4,415,279,882 6,065,868,474 72,548,007,733 5,671,449,341 33,007,788,230 December. w 3 o w o 4 N o . 33,—Trade acceptances discounted by each Federal Reserve Bank, by months, during the calendar year 1919, and totals for 1918 and 1917, 5 to Federal Reserve Bank. January. February. March. April. May. June. July. August. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco.... $1,470,858 3,189,254 182,126 1,129,610 721,168 987,686 612,710 558,573 6,107 830,397 410,718 805,006 $1,211,748 3,907,288 113,663 693,731 568,851 371,794 237,317 370,525 9,631 540,233 144,898 709,758 $510,189 3,597,027 396,659 427,305 850,340 606,231 267,882 335,582 18,376 699,096 109,681 743,033 $459,033 3,944,232 197,797 603,332 632,700 438,940 84,140 510,293 29,097 734,594 72,261 364,949 $106,740 3,766,408 157,829 391,912 850,077 526,196 136,263 367,761 13,255 501,236 108,217 135,441 $358,275 3,196,586 218,366 779,365 941,394 455,288 164,616 258,794 10,796 1,484,710 28,047 49,895 $305,814 4,101,953 139,625 1,068,762 540,651 310,647 292,124 7,500 864,408 49,974 516,531 $128,777 2,747,381 191,924 944,905 292,559 335,619 215,162 416,385 6,772 509,567 3,896 634,464 Total— 919 1918. • 1917. 10,904,213 13,998,454 574,464 8,879,437 19,217,453 856,078 8,561,401 16,230,557 762,820 8,071,368 11,120,947 678,022 7,061,335 13,165,738 1,767,702 7,946,132 14,810,953 2,521,374 8,504,928 13,822,069 1,077,607 6,427,411 12,762,403 1,6 1 I W o Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St.Louis Minneapolis Kansas City Dallas San Francisco Total—1919, 1918 1917, September. October. November. $348,356 3,567,082 270,787 1,495,015 466,194 522,391 484,222 674,714 99,953 384,550 58,465 2,236,593 $386,620 7,220,020 381,084 1,572,906 670,753 1,968,217 468,857 1,330,184 134,066 479,476 120,142 1,331,959 $2,237,225 10,608,322 20,917,189 1,125,834 16,064,284 23,519,494 4,354,747 December. Total, 1919.1 959,873 2,031,238 536,361 1,017,726 2,268,244 1,168,770 78,422 69,350 435,844 1,361,975 $3,297,357 8,136,966 543,565 2,953,262 2,011,330 693,112 1,334,383 1,662,475 151,139 388,698 344,859 1,950,176 $10,820,992 57,133,089 3,753,298 14,091,343 9,082,378 8,233,847 6,580,735 7,946,180 565,114 7,486,315 1,887,002 10,839,780 21,923,920 16,190,679 6,959,770 23,467,322 11,616,643 15,424,651 U38,420,073 Total, 1918. $10,287,131 70,676,912 5,650,053 24,894,291 13,389,109 11,697,196 9,033,011 15,681,201 799,371 10,400,938 2,056,758 12,806,608 $6,115,127 6,863,800 726,078 4,400,590 3,160,449 4,562,494 429,845 3,114,503 363,673 2,646,322 177,953 5,210,298 w w II O Ul o 187,372,579 i Includes foreign trade acceptances as follows: Boston, $2,483,516; New York, $15,936,065; Atlanta, $50,547; Dallas, $74,052; San Francisco, $304,125. Total, 1917 37,771,132 I l 6 w Ul o? N o . 34.— Total bills discounted, by months, during the calendar year 1919, distributed by classes of member banks. January. Federal Reserve Bank. Boston New York... Philadelphia. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas San Francisco. Total... State banks and trust companies. National banks. National banks. National banks. $52,032,619 $270,959,061 627,550,668 1,933,364,120 134,149,707 676,446,144 69,625,108 159,198,612 18,953,164 311,669,971 29,249,999 104,332,563 94,196,734 241,652,703 96,373,624 64,938,533 19,201,054 1,272,714 117,501,381 3,101,780 95,927,759 6,332,471 153,862,942 13,485,339 1,267,862,222 3,871,100,079 1,114,888,836 4,180,489,934 July. June. Federal Reserve Bank. State banks and trust companies. National banks. State banks and trust companies. National banks. State banks and trust companies. State banks and trust companies. National banks. National banks. $60,449,679 698,367,270 156,545,536 90,142,398 23,644,575 39,889,914 100,235,444 88,753,317 1,780,041 7,404,408 7,917,743 17,943,915 $438,719,759 1,997,908,420 744,544,451 170,451,215 334,403,771 112,047,000 238,095,359 99,960,074 69,148,620 134,282,116 107,191,237 160,349,731 1,293,074,240 4,607,101,753 August. State banks and trust companies. May. April. March. $57,667,841 $303,707,840 733,430,305 2,040,220,299 506,458,644 124,843,668 127,971,485 55,030,662 257,722,555 17,738,159 47,353,304 79,466,488 168,850,971 124,578,700 50,639,332 80,073,529 11,217,266 1,911,115 84,398,282 4,705,374 91,132,625 6,032,203 149,314,292 14,497,362 $313,291,557 2,734,628,978 558,879,080 14S,943,471 265,617,894 122,481,932 184,367,373 59,127,506 15,405,960 91,634,298 84,045,692 148,096,302 4,726,520,043 February. State banks and trust companies. State banks and trust companies. $390,391,994 3,320,699,274 806,526,373 160,635,880 337,548,680 126,758,427 261,781,704 100,927,954 75,110,846 140,649,340 112,984,431 153,582,928 $53,538,173 746,370,557 138,952,655 79,189,101 30,585,123 38,769,137 151,068,972 104,237,590 6,041,619 6,730,628 11,834,692 25,863,577 1,294,299,887 5,987,597,831 1,393,181,824 $66,521,709 680,147,354 171,493,806 54,250,011 28,861,101 39,890,979 112,765,753 97,166,989 3,809,925 9,866,345 9,991,618 19,534,297 September. National banks. National banks. State banks and trust companies. o i October. National banks. State banks and trust companies. W o Boston New York.. Philadelphia Cleveland... Richmond.. $315,844,179 2,548,527,973 900,679,601 165,913,775 366,266,960 $47,165,991 $349,556,293 554,269,354 3,201,056,209 178,897,018 833,404,090 55,844,568 180,694,630 32,031,324 384,460,508 $53,504,054 $201,668,015 788,418,498 2,947,565,691 767,442,786 198,670,131 105,269,672 185,153,800 351,695,051 35,447,707 $43,710,597 $275,609,012 581,136,677 2,795,478,550 155,332,500 847,442,670 88,564,542 222,008,834 31,304,897 320,346,694 $38,442,672 $338,861,090 700,222,544 3,671,788,669 156,273,308 1,003,293,351 78,418,327 229,696,205 24,575,180 297,868,455 $46,955,458 800,636,375 80,112,628 21,167,618 Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total 121,497,546 220,092,173 79,204,476 34,065,169 132,622,673 103,394,959 123,194,857 40,389,284 174,378,649 91,839,134 3,796,695 4,467,089 9,118,163 25,409,920 5,111,304,341 1,217,607,189 31,836,725 179,118,312 78,981,115 4,026,398 2,425,284 9,604,730 16,462,232 165,675,611 245,958.856 98,214,274 62,241,616 132,577,844 107,051,634 124,591,337 47,113,115 132,051,126 110,150,426 4,609,379 7,383,713 10,260,378 19, 458,157 132,588,683 287,164,554 119,537,478 92,896,788 159,767,995 127,917,001 149,737,454 73,261,339 124,066,460 100,748,542 7,716,383 11,411,049 9,314,486 25,311,225 5,672,746,781 1,510,688,292 5,211,158,277 1,222,504,009 5,397,196,932 1,328,958,325 6,611,117,723 1,449,200,246 142,547,831 184,972,455 75,028,109 26,019,482 102,571,576 88,584,927 103,850,671 35,637,144 178,682,104 71,799,048 2,533,994 7,351,221 11,000,850 19,373,869 149,808,888 198,498,456 73,439,168 34,166,400 101,653,201 85,035,122 115,031,699 November. Federal Reserve Bank. National banks. December. State banks State banks and trust National banks. and trust companies. companies. 3 Total. National banks. State banks and trust companies. All member banks. H O Ul Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. $364,692,049 3,758,956,649 607,829,457 205,906,474 242,049,476 115,989,224 327,412,209 103,891,199 84,049,670 138,149,854 65,097,987 140,608,384 $62,230,215 707,250,426 75,807,335 86,280,204 22,031,186 58,043,812 120,771,046 76,219,565 4,755,943 7,785,037 5,573,446 33,117,528 $440,188,026 3,181,117,946 768,450,673 212,705,507 349,107,998 105,582,800 368,611,413 109,216,637 91,257,292 135,770,313 54,979,342 170,718,320 $86,690,363 700,378,328 75,573,604 113,849,260 25,844,862 -45,565,837 136,940,619 70,162,977 4,486,010 11,385,822 4,622,649 27,665,993 $4,003,488,875 34,131,312,778 9,021,397,320 2,169,279,888 3,818,758,013 1,478,776,993 2,927,458,226 1,065,559,831 614,780,163 1,471,578,873 1,123,342,716 1,692,938,917 $671,909,371 8,318,178,356 1,715,037,951 956,576,481 312,184,896 527,000,589 1,628,853,919 1,035,070,765 46,740,216 84,017,750 101,603,429 258,123,414 $4,675,398,246 42,449,491,134 10,736,435,271 3,125,856,369 4,130,942,909 2,005,777,582 4,556,312,145 2,100,630,596 661,520,379 1,555,596,623 1,224,946,145 1,951,062,331 Total.... 6,154,632,632 1,259,865,743 5,987,706,267 1,303,166,324 63,518,672,593 15,655,297,137 79,173,969,730 X H o 4 5 Ul N o . 35.—Average rate (per cent) charged on all paper discounted by each Federal Reserve Bank, by Months, during the calendar year 1919. Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Systom—1919 1918. January. February. March. April. May. June. July. Novem- Decem- Average, Average, August. SeptemOctober. 1918. ber. ber. ber. 1919. 4.05 4.07 4.12 4.19 4.28 4.21 4.17 4.17 4.39 4.82 4.65 4.54 4.13 4.03 4.08 4.13 4.28 4.18 4.14 4.15 4.28 4.68 4.52 4.49 4.09 4.02 4.07 4.13 4.31 4.18 4.15 4.18 4.19 4.72 4.42 4.47 4.18 4.03 4.09 4.11 4.44 4.16 4.17 4.13 4.22 4.77 4.47 4.46 4.14 4.03 4.07 4.13 4.25 4.19 4.21 4.15 4.41 4.66 4.46 4.50 4.17 4.04 4.07 4.13 4.26 4.22 4.26 4.20 4.40 4.82 4.45 4.51 4.20 4.06 4.01 4.08 4.20 4.13 4.17 4.15 4.29 4.57 4.38 4.44 4.18 4.05 4.01 4.08 4.20 4.13 4.18 4.16 4.10 4.40 4.30 4.41 4.18 4.04 4.01 4.12 4.31 4.19 4.36 4.29 4.38 4.55 4.36 4.39 4.22 4.03 4.02 4.14 4.28 4.24 4.40 4.22 4.50 4.60 4.34 4.47 4.56 4.49 4.34 4.55 4.46 4.51 4.61 4.52 4.74 4.91 4.55 4.58 4.64 4.63 4.61 4.68 4.64 4.61 4.69 4.64 4.88 5.02 4.80 4.62 4.25 4.14 4.13 4.24 4.32 4.25 4.35 4.26 4.54 4.74 4.46 4.50 4.18 4.02 4.14 4.02 4.15 4.08 4.18 4.23 4.16 4.35 4.19 4.42 4.14 4.37 4.12 4.25 4.18 4.24 4.19 4.21 4.53 4.67 4.18 4.26 4.20 4.17 4.06 4.09 4.21 4.38 4.06 4.24 4.27 4.72 4.80 4.55 4.54 W 4.26 td o N o . 36.—Average rate (per cent) charged on all paper purchased by each Federal Reserve Bank, by months, during the calendar year 1919. Federal Reserve Bank. Boston .. New York Philadelphia Clereland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco January. February. March. April. May. 4.20 4.22 4.26 4.27 4.56 4.56 4.36 4.26 4.23 4.33 4.62 4.34 4.17 4.19 4.13 4.22 4.56 4.56 4.26 4.21 4.21 4.19 4.67 4.29 4.19 4.18 4.17 4.19 4.56 4.56 4.21 4.21 4.20 4.38 4.57 4.33 4.15 4.20 4.20 4.21 4.56 4.56 4.22 4.23 4.17 4.26 4.63 4.28 4.17 4.19 4.23 4.20 4.56 4.56 4.28 4.39 4.20 5.07 4.65 4.23 4.28 4.24 4.24 4.24 4.24 June. 4.18 4.23 4.33 4.22 4.56 4.56 4.27 4.25 4.22 5.07 4.56 4.26 4.24 July. 4.22 4.25 4.23 4.23 4.56 4.56 4.21 4.23 4.24 4.65 4.25 4.25 August. Septem- October. Novem- Decem- Average, ber. 1919. ber. ber. 4.24 4.23 4.27 4.22 4.56 4.56 4.28 4.22 4.22 5.00 4.50 4.24 4.19 4.22 4.26 4.23 4.56 4.56 4.25 4.26 4.21 4.25 4.67 4.24 4.25 4.25 4.25 4.24 4.31 4.23 4.56 4.56 4.24 4.32 4.22 4.45 4.45 4.34 4.46 4.57 4.56 4.50 4.49 4.47 4.77 4.53 4.92 4.81 4.75 4.84 4.82 4.60 4.87 4.80 4.75 4.79 5.01 4.88 4.36 4.37 4.38 4.32 4.60 4.57 4.38 4.31 4.25 4.51 4.68 4.40 4.73 4.23 4.47 4.84 4.36 4.26 a 8 i O o 1 N o . 37.—Average maturity (in days) of all paper discounted by each Federal Reserve Bank, by months, during the calendar year 1919. oo Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco System—1919. 1918. January. February. March. April. May. June. July. August. Septem- October. November. December. Average, Average, 1918. 1919. 17.72 7.20 9.85 13.70 10.79 18.04 16.67 13.93 16.83 24.23 26.62 16.65 12.44 8.68 8.46 14.84 10.75 17.15 15.95 13.42 17.09 22.26 23.07 15.99 8.27 8.36 7.28 12.28 9.98 16.64 16.28 12.87 15.42 21.87 20.22 16.58 14.68 8.61 7.71 14.10 10.56 17.56 16.33 12.29 15.28 23.30 21.70 16.25 9.15 6.58 7.27 14.42 10.88 16.73 16.71 11.00 17.95 21.76 20.43 16.96 12.06 7.31 6.94 13.99 10.29 16.35 17.10 10.91 17.13 27.09 19.23 16.42 13.87 7.05 7.10 13.14 11.30 16.91 16.84 13.52 18.07 22.41 19.43 16.42 14.45 6.67 7.31 14.22 11.51 16.85 17.40 12.39 15.42 17.97 17.94 17.14 11.85 6.49 6.69 13.16 9.79 16.95 20.29 14.10 19.66 20.76 18.91 16.41 13.38 6.32 6.93 15.35 10.50 19.70 21.31 13.16 25.00 22.31 17.89 16.49 15.61 7.12 14.32 17.77 10.90 21.79 24.53 13.50 26.73 27.33 19.14 17.04 13.28 7.40 9.04 17.61 9.93 18.70 27.04 16.73 35.23 27.66 19.46 15.28 13.12 7.20 7.29 14.66 10.60 17.83 19.33 13.12 22.27 23.41 20.25 16.42 10.34 18.90 10.74 27.73 10.15 22.25 11.07 11.25 9.13 12.59 9.79 10.09 9.41 12.85 9.33 12.70 9.44 10.38 9.54 11.17 11.36 12.37 11.52 8.54 10.13 18.93 7.31 16.51 17.51 10.40 19.01 18.59 19.89 32.78 30.76 27.00 25.31 I 11.81 o N o . 38,—Average maturity (in days) of all paper purchased by each Federal Reserve Bank, by months, during the calendar year 1919. Federal Reserve Bank. Boston New Y o r k . . . . Philadelphia. Cleveland Richmond.... Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas San Francisco System. January. February. 62.27 44.74 67.04 33.29 38.80 33.88 51.93 65.48 73.56 58.39 48.63 57.56 53.01 62.80 54.71 55.51 45.67 44.84 43.70 39.71 78.14 69.78 73.70 71.12 March. 34.10 April. May. June. July. August. Septem- October. November. ber. December. Average, 1919. 43.10 42.64 57.00 59.82 56.41 62.38 64.43 42.16 60.14 61.24 47.38 61.93 50.45 29.52 36.65 49.70 49.93 36.38 59.45 60.50 48.67 54.42 76.25 58.10 54.86 41.12 42.24 82.78 54.39 58.90 68.14 54.67 21.42 60.16 55.53 46.83 79.08 65.07 71.64 63.55 67.73 46.68 70.67 41.20 63.61 50.80 44.09 44.56 52.50 37.63 54.73 65.22 41.02 57.60 88.00 29.00 57.55 50.54 58.28 49.40 66.78 55.49 48.31 74.12 66.39 67.74 66.54 71.26 61.65 73.27 65.26 36.80 73.39 51.21 50.73 46.15 48.36 55.55 57.11 39.38 46.57 69.82 66.65 53.26 36.52 57.64 58.48 52.76 60.58 34.22 35.18 41.47 45.60 62.83 60.40 56.07 34.17 47.22 47.96 56.34 55.29 24.55 38.47 73.24 47.19 62.26 60.60 70.35 35.05 57.04 36.77 49.16 58.74 34.92 37.65 47.63 52.95 45.80 45.38 65.71 44.94 59.92 82.84 23.01 60.91 34.47 45.46 67.02 57.12 46.62 55.80 67.27 44.51 64.96 42.69 42.00 45.80 45.60 W w 3 3 o I N o . 39,—Number of banks, by districts, accommodated through the discount of paper during each month in 1919. Federal Reserve district. January. February. March. April. May. June. July. August. SeptemOctober. November. ber. December. Total, 1919. Boston New York Philadelphia Cleveland Richmond Atlanta .. Chicago... . . St. Louis Minneapolis Kansas City Dallas San Francisco 191 395 351 153 242 245 416 176 Id8 334 419 226 152 403 322 143 266 236 301 167 128 313 403 257 208 403 341 177 263 214 597 171 142 366 421 272 230 426 346 19£ 281 223 651 190 180 400 465 288 245 423 391 207 312 262 560 191 235 418 508 283 250 504 432 229 320 265 551 168 212 410 426 280 250 402 413 199 321 233 497 190 151 381 398 250 243 381 389 213 299 241 468 185 1KB3 295 341 242 231 378 388 222 387 255 494 205 164 351 420 227 244 396 389 245 297 247 614 223 224 391 359 210 265 405 375 282 252 185 613 211 280 354 235 192 277 434 405 276 255 173 586 205 270 365 200 213 348 546 494 409 414 347 951 305 475 679 607 418 Total—1919 1918 1917 3 ; 316 1,432 309 3,091 1,353 262 3,575 1,568 315 3,875 2,100 384 4,035 2,793 590 4,047 3,021 900 3,685 3,462 960 3,460 3,671 990 3,722 3,839 3,610 1,140 3,649 3,667 1,574 3,659 3,288 1,701 5,993 3,464 953 OO Total, 1918. 269 522 457 320 373 327 850 278 580 554 548 415 o Total, 1917. 218 322 201 160 246 228 541 149 284 364 258 156 g 5,493 3,127 si w o No. 40.—Acceptances bought in open market during the calendar year 1919, distributed by classes. Bankers' acceptances. Month. In the foreign trade. In the domestic trade. Dollar exchange. Trade acceptances. Total. In the foreign trade. In the domestic trade. Grand total. Total. 5 January February.. March April May June. July August September. October November. December.. $100,580,386 81,381,667 84,757,707 89,420,640 106,705,776 227,983,824 213,595,045 155,751,303 153,415,849 248,045,528 252,695,143 306,555,328 $96,180,827 61,804,082 54,254,477 47,451,019 37,889,464 62,218,856 60,379,550 36,653,358 48,546,581 81,818,557 82,849,782 86,378,589 $1,698,770 1,468,980 405,265 406,114 1,158,490 67,557 841,327 381,250 312,468 408,637 1,463,650 2,693,252 $198,459,983 144,654,729 139,417,449 137,277,773 145, 753,730 290,270,237 274,815,922 192,785,911 '202,274,898 330,272,722 337,008,575 395,627,169 $1,935,145 2,255,982 3,963,834 3,114,337 1,621,293 983,940 940,450 1,157,435 2,293,845 3,051,436 2,897,336 3,073,839 $1,096,578 499,382 280,273 246,799 275,169 661,269 728,458 267,279 479,592 1,937,554 789,594 2,007,085 $3,031,723 2,755,364 4,244,107 3,361,136 1,896,462 1,645,209 1,668,908 1,424,714 2,773,437 4,988,990 3,686,930 5,080,924 $201,491,706 147,410,093 143,661,556 140,638,909 147,650,192 291,915,446 276,484,830 194,210,625 205,048,335 335,261,712 340,695,505 400,708,093 Total 2,020,888,196 756,425,142 11,305,760 2,788,619,098 27,288,872 9,269,032 36,557,904 2,825,177,002 w 1-3 o Ul o g i I s oo No, 41,—Acceptances bought in open market during each month in 1919; also totals for 1918 and 1917. 00 to Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total—1919... 1913... 1917... Per cent—1919 1918 1917 September. January. February. March. April. May. June. July. August. $24,383,920 75,582,937 883,390 31,770,316 4,083,668 4,088,494 15,436,290 10,199,890 10,457,484 6,048,056 2,062,000 16,495,261 $20,341,094 56,351,764 1,541,652 13,278,112 2,502,650 1,817,889 13,573,765 11,345,794 4,563,902 3,190,558 943,000 17,959,913 $13,227,576 53,250,195 1,828,063 13,331,247 3,365,168 3,171,230 13,631,397 9,925,288 12,462,554 4,476,105 1,080,000 13,912,733 $17,239,328 61,605,656 1,918,792 14,238,451 3,904,855 3,064,032 14,497,266 5,353,983 5,386,625 1,401,481 678,000 11,350,440 $18,501,331 60,721,633 534,512 15,472,166 2,791,242 2,788,678 22,025,711 5,546,649 4,596,780 9,595 830,000 13,831,895 $31,701,356 137,454,889 134,911 29,127,647 4,567,752 5,620,163 26,299,097 8,684,572 16,604,013 1,999 734,000 30,985,047 $24,972,461 129,118,992 278,963 30,233,112 5,538,112 4,802,064 30,434,172 7,445,974 10,776,667 627,822 32,256,491 $42,565,466 64,910,476 509,732 16,755,025 5,492,600 2,286,371 23,529,003 7,469,809 7,642,665 21,115 499,659 22,528,704 $20,353,090 64,460,086 687,216 23,450,835 5,226,079 3,950,570 24,031,764 7,213,275 12,698,615 600,000 1,025,272 41,351,533 201,491,706 130,619,509 20,617,180 7.1 7.2 1.9 147,410,093 148,275,106 70,640,679 5.2 8.1 143,661,556 138,996,364 28,152,638 5.1 7.6 2.6 140,638,909 108,515,517 41,312,691 5.0 6.0 3.8 147,650,192 115,913,940 82,544,372 5.2 291,915,446 89,580,022 135,229,697 10.3 4.9 12.5 276,484,830 123,573,644 66,864,065 194,210,625 162,796,413 72,122,802 205,048,335 183,132,122 109,046,466 7.2 10.1 10.1 7.7 6.7 I 1-3 w te3 W o > No. 41.—Acceptances bought in open market during each month in 1919; also totals for 1918 and 1917—Continued. Per cent. Total. Federal Reserve Bank. October. November. December. 1919 Boston.. . New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis . . . . . Kansas City Dallas San Francisco Total—1919 1918 1917 Per cent—1919 1918 1917 1,912,400 42,463,246 $39,438,586 210,272,820 2,678,026 27,622,483 6,743,120 6,019,116 42,017,209 5,381,753 1,547,985 10,337,197 940,460 47,709,338 $360,783,757 1,211,398,977 14,048,450 261,750,317 52,977,382 51,661,193 292,011,808 87,502,626 108,714,435 26,086,106 12,415,233 345,826,718 340,695,505 195,697,512 186,218,728 12.1 10.8 17.3 400,708,093 155,733,438 178,069,009 14.2 8.6 16.5 2,825,177,002 $44,081,751 145,060,466 220,704 27,417,732 4,956,924 9,686,840 32,835,029 3,610,303 11,327,226 $63,977,798 152,609,063 2,832,489 19,053,191 3,805,212 4,365,746 33,701,105 5,325,336 10,649,919 1,082,620 54,982,117 335,261,712 256,705,208 86,894,182 11.9 14.6 8.1 1918 $194,157,686 945,497,423 77,686,322 122,800,420 70,765,491 45,477,368 122,787,257 26,096,120 13,902,579 14,690,587 25,024,122 150,653,420 1917 $91,528,205 464,965,602 85,913,798 91,109,193 58,116,061 26,392,564 66,714,061 29,732,271 33,072,316 26,825,413 35,076,917 68,266,108 1919 12.8 42.9 .4 9.3 1.9 1.9 10.3 3.1 3.9 .9 .4 12.2 1918 10.7 52.0 4.3 6.7 3.9 2.5 7.2 1.4 .8 .8 1.4 8.3 1917 8.5 42.9 7.9 8.4 5.4 2.4 6.2 2.7 3.1 2.5 3.2 6.8 M B U 02 1,809 538 795 1,077,712,509 100.0 100 0 100.0 i W oo CO No. 4£«—Acceptances bought in open market during each month in 1919, distributed by maturities. 00 MATURITIES. Month. January February March April May June July August September October November December Total—1919 1918 1917 Within 15 days. From 16 to 30 days. From 31 to 60 days. From 61 to 90 days. $27,192,062 26,214,072 22,886,198 32,819,728 34,396,176 75,037,208 63,916,450 34,977,827 40,798,778 72,022,506 63,079,659 85,410,188 $61,483,057 23,394,980 32,397,835 25,629,438 25,172,762 48,801,795 25,443,507 29,547,930 48,627,506 56,552,913 34,869,917 43,867,155 $46,851,121 67,650,245 60,215,753 59,148,103 50,699,368 79,513,349 70,265,490 67,276,021 52,288,254 89,997,199 87,498,710 75,922,791 $65,565,466 30,150,796 28,151,770 23,041,640 37,381,886 88,563,094 116,859,383 62,408,847 63,333,797 116,665,011 155,247,219 195,507,959 $400,000 578,750,852 161,963,856 32,048,198 455,788,795 276,656,397 128,893,138 807,326,404 466,589,072 267,034,882 982,876,868 876,539,062 613,295,256 434,083 27,790,408 36,441,035 Over 90 days. 10,000' 24,0 Total, 1919. Total, 1918. $201,491,706 147,410,093 143,661,556 140,638,909 147,650,192 291,915,446 276,484,830 194,210,625 205,048,335 335,261,712 340,695,505 400,708,093 $130,619,509 148,275,106 138,996,364 108,515,517 115,913,940 89,580,022 123,573,644 162,796,413 183,132,122 256,705,208 195,697,512 155,733,438 Total, 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 86,894,182 186,218,728 178,069,009 w 2,825,177,002 1,809,538,795 1,077,712,509 I W o N o . 43.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1919, CHRONOLOGICAL TABLE. Rediscounted or sold by Federal Reserve Bank of— w Discounted or purchased by Federal Reserve Bank of— i Chicago Minneapolis , Chicago Kansas City Chicago Minneapolis Do Chicago Minneapolis Chicago Do Do Cleveland Chicago New York Minneapolis Chicago Minneapolis Chicago Do Cleveland . . Minneapolis San Francisco Date. Boston. New York. Philadelphia. Richmond. Atlanta. Chicago. Discounted Purchased Purchased Discounted Discounted Discounted Purchased bills. bills. bills. bills. bills. bills. bills. . Jan. 2 . . . Jan. 3 . . . ...do ..do ... $5,009,980 Jan. 6 . . ...do Jan.10.. Jan. 15 . ...do Jan.17,. Jan.20.. Jan.22.. . . d o . . $10 017 300 Jan. 23.. ...do Jan. 28.. ..do ... Jan. 29.. Jan. 30.. Jan. 31.. do . . Feb 3 ...do Minneapolis. Kansas City. Dallas. San Francisco. S Purchased Discounted Discounted Purchased bills. bills. bills. bills. $5 000,000 $6,013,000 5,000,000 $5,000 000 9 O 5,190,000 5 000 000 5,000,000 1 000 000 7 500 000 7 500 000 5,000,000 2 500 000 5 000 000 i $45.853 $10 000 000 10 004 000 $5 052 808 5,000 000 5,000,000 5,088,039 5 036 913 5,010,687 8 oo N o . 43.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1919—Continued. oo CHRONOLOGICAL TABLE—Continued. Rediscounted or sold by Federal Reserve Bank of— Discounted or purchased by Federal Reserve Bank of— 1 Chicago Cleveland Chicago Minneapolis Cleveland Chicago Do St. Louis San Francisco Chicago Minneapolis Chicago San Francisco Chicago Do Do San Francisco Kansas City Do Chicago Date. Boston. Discounted Purchased bills. bills. Feb 3 . . . Feb. 4... Feb. 6... Feb. 7... ...do Feb. 8 . . Feb. 11.. ...do do Feb. 14. Feb. 17.. ,..do Feb. 18.. Feb. 19.. $10,028,000 Feb. 20.. Feb. 24.. Feb. 25.. Feb. 27.. ...do ...do Mar. 1... Mar. 3 . . . Mar. 4... New York. Philadelphia. Richmond. Atlanta. Chicago. Purchased Discounted Discounted Discounted Purchased bills. bills. bills. bills. bills. Minneapolis. Kansas City. Dallas. San Francisco. Purchased Discounted Discounted Purchased bills. bills. bills. bills. $5,000,000 $10,100 167 5 000 000 $10,000,000 W $5,034,384 5 000 000 5 057,259 5 071,020 2,538,884 $10,000,000 10,000,000 5,001,156 10 000 000 5,163,305 5 000 000 5 000 000 7 500 000 5,016 061 10,000 000 5,060,295 15 000,000 10 000 000 1,182 893 5,000,000 W O New York St. Louis Kansas City Chicago ; Do Minneapolis Do Chicago Do St. Louis Kansas City Chicago Cleveland Do Chicago Do Minneapolis Do Cleveland Chicago Do Minneapolis Chicago Minneapolis Cleveland Chicago Cleveland New York Cleveland Chicago New York Cleveland Chicago Do Minneapolis ..do.. ...do.... ..do.... Mar. 7.. Mar. 10. ...do.... Mar. 13. ...do.... Mar. 14. ...do.... ...do.... Mar. 17. Mar. 18. Mar. 19. ...do.... Mar. 20. ...do.... Mar. 24. ...do.... ..do.... Mar. 27. Mar. 28. ..do.... Mar. 31. ..do.... ..do Apr. 1... Apr. 2... Apr. 3... ..do.. ..do.. Apr. 9.. ...do Apr. 10 ...do 100,000 2,500,000 2,500,000 5,000,000 5,000,000 10,000,000 3,008,010 20,079,153 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 2,500,000 2, 500,000 5,000,000 6,000,000 5,000,000 5,000,000 5,000,000 5,000,000 10,000,000 2,500,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 10,000,000 5,000; 000 10,048,2 5,000,000 5,000,000 5,000,000 10,000; 000 10,000,000 5,000,000 5,000,000 10,000,000 10,000,000 5,000,000 5,000,000 5,000,000 10,000,000 N o . 43.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1919—Continued . 00 oo CHRONOLOGICAL TABLE—Continued. Rediscounted or sold by Federal Reserve Bank of— Discounted or purchased by Federal Reserve Bank of— Date. New York. Philadelphia. Richmond. Atlanta. Chicago. Discounted Purchased Purchased Discounted Discounted Discounted Purchased bills. bills. bills. bills. bills. bills. bills. i Cleveland Chicago ... Ban Francisco New York Chicago Cleveland . Chicago Do Cleveland Chicago Do Minneapolis San Francisco New York Cleveland . . Chicago Do Cleveland Chicago San Francisco Chicago Do San Francisco Boston. Apr. 11 ...do.... ...do.... Apr. 12 do.. . Apr. 14 ...do Apr. 16 -Apr. 17 .do. .. Apr. 18 Apr. 21 ...do Apr. 22 ...do.... ...do Apr 23 Apr. 24 .do.. . .do.... Apr. 26 Apr. 28 ...do Minneapolis . Kansas City. Dallas. San Francisco. ! Purchased i Discounted Discounted Purchased bills. bills. bills. bills. 1 i $5,000,000 10,000,000 $2,827,239 IJKIO.000 000 i $5 000 000 $5,000,000 5,000,000 W 7,500 000 5,000 000 6.000.000 10 000 000 5 000,000 5,000,000 10 000 000 ft 5,036,461 i 10,000,000 5,000,000 2,500,000 10,000,000 5,000,000 5 000 000 2 500 000 5,000,000 5,000,000 7,500 000 5,000 000 5,046,506 5,000,000 w o Cleveland Chicago Do......... San Francisco.. Minneapolis Chicago Do Cleveland Chicago Do Cleveland Chicago Do Do Do San Francisco.. Minneapolis— Cleveland Chicago Do Do Cleveland Chicago Minneapolis Chicago Do Cleveland San Francisco. Cleveland Chicago Do Cleveland Minneapolis Cleveland Chicago...... r . . . , . . . , . . r . . T . . . Apr. 29 ..do Apr. 30 ..do May 1 ...do May 2 ...do May 3 May 5 ...do May 6 May 7 May 8 May 9 ...do May 12 May 13 ...do..... May 14 May 15 ...do May 16 ...do..... May 17 May 19 May 20 ...do.... May 21 !... do | May 22 !.. .do I.. .do | May 23 | . . . do 10,000,000 5,000,000 2,500,000 4,500,000 5,010,3 X 10,000,000 3,000,000 5,000,000 W w I—I 10,000,000 H 6,000,000 5,000,000 O 5,000,000 5,000,000 2,500,000 5,000,000 5,000,000 4,000,000 10,000,000 O 3,244,941 10,000,000 5,000,000 10,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 4,000,000 3,000,000 4,000,000 5,000,000 5,000,000 5,000,000 5,021,553 5,000,000 3,000,000 6,000,000 5,000,000 5,000,000 10,000,000 5,000,000 i, 200,000 oo No. 43.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1919—-Continued. CHRONOLOGICAL CD O TABLE—Continued. Rediscounted or sold by Federal Reserve Bank of Discounted or purchased by Federal Reserve Bank of—* Bos ton. Date. Discounted Purchased bills. bills. St Louis Cleveland Minneapolis Chicago Do Cleveland Do Chicago Cleveland Chicago Minneapolis (TlPVeland St Louis Minneapolis Chicago St Louis Richmond. Atlanta. Chicago. Minneapolis. Purchased bills. Kansas City. Dallas. San Francisco. Discounted Discounted Purchased bills. bills. bills. o $10 000 000 ...do *] $4,000,000 10 000 000 Mav 29 .do.... June 2 do do June 3 do do . June 4 do San Francisco H O $5 000 000 5,000,000 10,000,000 do CVIIORPO Philadelphia. Purchased Discounted Discounted Discounted Purchased bills. bills. bills. bills. bills. May 23 May 26 ...do .do.... Mav 28 June ...do June June June do Chicago Minneapolis San Francisco Chicago Cleveland New York. 5,004,000 5,000,000 10,000,, 000 5 000 000 W 2,500,000 13 000 000 4,000,000 5 000 000 CO 5 000,000 5 000 000 7,000,000 5 6 7 9 5,000,000 5,000,000 5,000,000 H 5,000,000 w o 10 000 000 5,000,000 $5 120 057 2 500 000 5,000,000 5,000,000 3,318,585 Chicago Do Cleveland Chicago Minneapolis Cleveland Chicago St. Louis Minrieapoli s Chicago Cleveland Chicago Minneapolis Chicago Cleveland Chicago.. Sin Francisco Clpveland Chicago Cleveland St Louis Minneapolis San Francisco Chicago Minneapolis Chicago MinnpaDOlis Nrexv York Chicago j)o Do Minneapolis Do Do Chicago June 10 June 11 June 12 ...do ..do June 13 . ..do.. ...do.. do June 14 June 16 .do. .do. June 18 June 19 ...do 5 000 000 2,500 000 5,000,000 10,000,000 5,000,000 3,500 000 8,000,000 4 000 000 8 000 000 5,000 000 5,000,000 1 4,000 000 15 1 iI 6,000,000 o 1 10,000,000 5 000 000 do H 7,000,000 10,000,000 5,000,000 5,041,472 I—I M 5,000,000 do. w w 5 000 000 5,000,000 5,000,000 June 20 2,775,000 10,000,000 June 23 10,000,000 do 15,000,000 i ...do. 5,028,319 do 10,000,000 June 24 June 25 June 26 10,000,000 do June .do June June . do July July ...do 4,000,000 2,500,000 8,000,000 27 28 30 1 2 5,000,000 10,000,000 5 000 000 1 j i 1 $5,061,566 5,000,000 5,000,000 10.000,000 5,000,000 3,000,000 5,000,000 5,000,000 10,000,000 10 000 000 5,000,000 > No. 43.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1919—Continued. CD to CHRONOLOGICAL TA BLE—Continued. Rediscounted or sold by Federal Reserve Bank of— Discounted or purchased by Federal Ret; ye Bank of— Date. I Chicago 1)0 Do. . Minneapolis .. Do Chicago Do Minneapolis San Francisco . Chicago Son Francisco Do Chicago . Cleveland Chicago St. Louis Chicago Minneapolis Do Chicago Do St Louis Chicago Boston. New Y ork. Philadelphia. Atlanta. Richmond. Chicago. Discounted Purchase:! .Purchased Discounted Discounted Dir-scounted Purchased bills. bills. bills. bills. bills. bills. bills. July 3 July 7 July 10 . .do.. July 11 do July 12 Kansas City. Dallas. $4,000,000 i San Francisco. Purchased Discounted Discounted Purchased bills. bills. bills. bills. S20 000.000 $10,000 000 15,000,000 5,000,000 5,000,000 10 000 000 5,000,000 o O 2 000 000 5,000,000 I ! 10,000,000 do July 14 July 15 do July 16 . .do.. July 17 ...do.... ...do July 21 ...do.. July 22 July 25 July 28 do July 30 Minneapolis. $10,013,383 5 000 000 10,022,763 7,006,406 3,000,000 Ul 10,011,871 20,000,000 15,000,000 14,000,000 ..7.000,000 3,500,000 10,000,000 5,000,000 5,000,000 15,000 000 10,000,000 5 000 000 10,000,000 5,000,000 w o > i 2,000,000 :::::::::::: Do St. Louis Minneapolis Do St. Louis Chicago Do St. Louis Do Minneapolis Do Do St. Louis Chicago Do St. Louis Minneapolis Do St. Louis Chicago , Minneapolis Chicago St. Louis Do Chicago San Francisco Do Chicago St. Louis Minneapolis Chicago St. Louis Minneapolis Chicago D® July 31 ..do.... ...do.... Aug. 1 ..do.... Aug. 4 Aug. 7 ...do.... Aug. 8 ...do.... Aug. 9 Aug. 11 ...do.... ...do.... ..do.... Aug. 12 ..do.... Aug. 14 ..do... .do. Aug. 15 ...do.... ..do.... Aug. 18 ...do.... ...do.... Aug. 19 ...do.... Aug. 20 Aug. 21 ..do.... .do. Aug. 22 Aug. 23 Aug. 25 18,000,000 5,000,000 10,000,000 10,000,000 5,000,000 5,000,000 5,000,000 10,000,000 5,000,000 100,000 2,000,000 2,000,000 I 2,000,000 ',000,000 10,000,000 5,000,000 5,000,000 3 5,000,000 5,000,000 1,000,000 1,409,000 o 5,000,000 100,000 2,000,000 10,000,000 5,000,000 10,000,000 5,010,163 5,018,288 17,000,000 136,500 5,000,000 10,000,000 5,000,000 200,000 5,000,000 2,000,000 1,000,000 CD CO No. 43.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1919—Continued. CO CHRONOLOGICAL TABLE—Continued. Rediscounted or sold by Federal Reserve Bank of— Discounted or purchased by Federal Reserve Bank of— Date. 1 St. Louis Kansas City Chicago Do Do Do Minneapolis Kansas City San Francisco St. Louis Chicago Kansas City Cleveland Chicago Do . Minneapolis New Y o r k . . . . Chicago St. Louis Chicago Do San. Francisco Chicago Boston. New York. Philadelphia. Richmond. Atlanta. Chicago. Discounted Purchased Purchased Discounted Discounted Discounted Purchased bills. bills. bills. bills. bills. bills. bills. .... Aug. 25 ...do Aug 28 Aug 29 Aug. 30 Sept. 2 ..do. . .. do. .. Sept 3 Sept. 4 Sept. 5 . . d o . .. Sept 6 Sept 8 Sept. 11 Sept. 12 ...do.... .. do Sept. 15 Sept. 17 Sept. 18 Sept. 19 ...do.... Minneapolis. Kansas City. Dallas. San Francisco. Purchased Discounted Discounted Purchased bills. bills. bills. bills. $10,000 000 $10,012,883 $5,000,000 5,000,000 5,000,000 $2,000,000 1,500,000 $5,000,000 1(5,000,000 w 10,000 000 10,001,499 4,294,113 5,000,000 5,000,000 2 000 000 5,008,191 3,000,000 10,000,000 2,000,000 15,000,000 W $21,667 o 3,000,000 7,000,000 5,000 000 3,000 000 15,000,000 2,000,000 2,000,000 2, 794,293 5,000,000 3,500,000 Sept. 22 Minneapolis Chicago Do Minneapolis Chicago Do. Minneapolis Chicago 5 000 000 7,000,000 Sept. 29 Sept. 30 Oct. 1 Oct. 3 . . do DoDo . Minneapolis Chicago Oct Do Chicago Do.. 5,000,000 ...do.... Sept 24 . . do Sept. 25 Sept. 26 Sept. 27 Do Minneapolis Chicago Do... Oct. 15 . . do San Francisco Chicago Do... Do Do Do Do Do Do Do Do St. Louis... Cleveland Oct Opt. San F r a n c i s c o . . . . Chicago , . „ . . „ , . , . . . „ ..do .do Oct. 30 4,000 000 3,000,000 4,000,000 5 000 000 3 000 000 2,500,000 1,000,000 2 000 000 3 176 075 6 000 000 3 500 000 5,000,000 5 000 000 1,000,000 10,000,000 5,000,000 H b I > O m O 5 000 000 3 000 000 X H w I—I 2,000 000 2, 500,000 2,500,000 3,177,012 16 17 Oct. 18 Oct. 20 Oct. 21 Oct. 22 Oct. 23 Oct 27 Oct. 28 . . Oct. 29 .do... . 4,000,000 4 000 000 2,500,000 2,500,000 10,000,000 4 Oct 6 Oct 7 Oct. 9 Oct 11 Oct 13 Oct. 14 . . 5 000 000 5,000,000 10,000,000 3,500,000 4,500,000 1 500 000 2 500 000 5,000,000 3,000,000 4,000,000 4 000 000 1,500,000 3 000 000 2 000 000 5 000 000 8,000,000 1,000,000 20,032, 021 4,000,000 I 5 014 052 10 042 517 5 032 618 4,000,000 CO N o . 43.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1919—Continued. CHRONOLOGICAL TABLE—Continued. Rediscounted or sold by Federal Reserve Bank of— Continued. Discounted or purchased by Federal Reserve Hank of— * Dare. Discounted Purchased bills. bills. i Chicago New York Cleveland St. Louis Chicago Do Do Do Do Do St. Louis Chicago Do St. Louis Dallas Chicago Do. Do. Do. Richmond St. Louis Dallas Chicago Boston. Oct. 31 ...do Nov. 3 ...do ...do Nov. 4 Nov. 6 Nov. 10 Nov. 12 Nov. 13 ...do Nov. 14 Nov. 17 ...do Nov. 19 Nov. 20 . .. Nov. 21 Nov. 22 Nov. 24 ...do ...do ...do Nov. 26 New York. Philadelphia. Richmond. Atlanta. Chicago. Purchased Discounted Discounted Discounted Purchased bills. bills. bills. bills. bills. $2,500,000 Minneapolis. Kansas City. San Francisco. Dallas. Purchased Discounted Discounted Purchased bills. bills. bills. bills. $1 500,000 $24,083 $9,824 $15,022,249 10,056,382 25,002,073 w 1,000,000 10,000,000 10,000,000 2,500,000 $10,164,346 10,081,040 1,500,000 5,000,000 4,500,000 5,012,134 4,000,000 3 000,000 5 000,000 5,045,896 5,079,873 5,036,679 5,065,649 2,500,000 1 g Kansas City St. Louis Chicago. Do Do. Do.. Dallas Do. Chicago Do. Dallas... Do Atlanta Chicago St. Louis. San Francisco Chicago NGW York Dallas Chicago Dallas. Atlanta . Chicago Dallas New York . Cliicago Dallas ...do.... Nov 28 ...do Dec. 1 Dec. 2 Dec. 5 Dec. 8 ..do. Dec. 12 Dec. 13 Dec. 18 ...do Dec. 19 ...do... ...do... ...do . do Dec. 20 Dec 22 - do Dec. 23 Dec. 24 Dec. 29 .do ...do... Dec. 30 do [ 10,005,496 5 000 000 4,000,000 10,000,000 4,500,000 2,000,000 3,000,000 5,000,000 9,000,000 4,500,000 4,000,000 4,000,000 X | S j 3 $7 000 000 5,061,648 10,097,U< 5,061,11.' 10,081,286 O in o 7,000,000 $500,000 9,000,000 4,500,000 6 000 000 3,000,000 4,000,000 $5,000,000 5 000 000 6 000 000 15,280 7 000 000 Dec. 31 7 500 000 1 CD N o . 43.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1919—Continued. CO oo MONTHLY RECAPITULATION. [In thousands of dollars.] Rediscounted or sold by Federal Reserve Bank of— New York. Boston. Month. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Total. 1 Discounted bills. January February 10,017 10,028 March April Purchased bills. 5,010 20,223 10,048 May June 5,062 July August September October . . N ovember 40,473 30,304 December Total 20,045 111,120 Purchased bills. Discounted bills. Discounted bills. TO 000 10,141 37,867 24,270 22,921 8,266 18 508 16,017 30,000 . 60,000 91,000 80.004 140 000 155 000 37,055 20,041 114,000 47,000 63,000 48,000 57 000 165 000 137,946 80 500 10 000 826,521 842,946 22,098 46,475 65 098 312,740 Discounted bills. Purchased bills. Purchased bilks. Discounted bills. Discounted bills. 46 36,190 70,000 25,000 100 30,000 ... 26,000 19,500 1 000 24 . . ! 22 . . . 10 67,000 63 200 59 775 16,500 11 000 i 30 000 34,000 26 500 82,690 124 78 56,500 515 404,975 Discounted bills. 104,724 107,528 173,500 253,000 258,204 354,775 295 500 32 500 37 500 53 500 30 000 60 000 65.000 115.000 Purchased bills. 195 946 189,000 126,500 58,000 117,000 515 2,233,677 Purchased bills. 15,197 58,090 24,370 32,969 8,266 23,570 37,055 20,041 22,120 46,509 105,571 30,819 424,577 o W 1 W o SUMMARY FOR T H E YEAR. [In thousands of dollars.] Total. Rediscountcd or sold by Federal Reserve Bank of— Discounted bills. 1 Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City D alias San Francisco Total New York. Boston. Discounted or purchased by Federal Reserve i3ank of— Purchased bills. Purchased bills. Philadelphia. Discounted bills. Cleveland. Richmond. St. Atlanta. Chicago. Louis. DisDiscounted counted bills. bills. Minneapolis. Purchased bills. Purchased bills. 124 78 Kansas Cky. Dallas. San Francisco. DisPurDiscounted cou nted chased bills. bills. bills. Discounted bills. Purchased bills. Grand total. x W w H ! ! 15.110 10,017 10,028 5 035 5 080 5,065 30,364 25,250 10,070 5 065 10,081 ! 20,045 111,120 10.000 50 2fi.r> 120,000 65,113 575,008 15,070 53,500 19,282 37,013 35,029 5,012 31,000 122,969 312,740 826,521 85,000 30,000 515 11 000 3,000 5,000 300,137 72,190 86 709 361 100^ 7,500 5,000 23,000 26 500 842,946 82,690 124 56,500 404,975 15,827 55,827 229,017 55,300 5,080 5,065 95,477 40,320 19,282 45,099 10,077 133,050 284,317 5,080 10,065 1,423,815 180,529 447,895 50,099 67,577 133,050 424,577 2,658,254 • 5,000 1,328,338 140,209 428,613 5,000 57,500 370 975 78 40,000 515 2,233, 677 g ui I CO N o . 44.—Amounts of United Stales bonds and Victory notes (par value) purchased by Federal Reserve Banks during each month 1918 and 1917. Federal Reserve Bank. January. February. Boston New York March. April. $1,300 May. June. $16,250 July. in 1919 and totals for August. to o o September. $13,500 50,000 $1 000 Philadelphia 2,000 Cleveland *• $10 100 Richmond Atlanta Chicago 7,600 $146,000 St Louis Minneapolis 12,050 $150 Kansas City Dallas San Francisco 100' $100 100 50 $50 200 261,800 50,000 300 150 50 w 7,025 1,007,000 100 165,000 Percent—1919. 1,014,175 14,337,638 2,431,390 57.76 146,200 14,746,700 144,950 8.32 1918 1917 19.38 2.98 19.93 .18 166,050 9,823,400 8,640,510 9.45 13.28 10.60 Total—1919 1918. 1917.. 1,300 3,239,550 2, 870,040 .07 85,900 15,831,825 52,000 4.89 277,600 13, 047, 750 1,241,900 15.79 60,250 1,141,700 18,366,650 3.43 4.38 3.52 21.40 17.63 1.52 1.54 22.53 .06 200 284,650 3,825, 460 .01 .38 4.69 300 106, 950 20, 830, 650 .02 .14 25.55 Classes of securities purchased each month: 3 | per cent bonds 4 pfir Qcnt bonds 4 | per cent bonds Victory notes 1,000 200 o 1, 000, 000 14,175 % fei 146,200 165,050 1,300 85,900 50 277, 550 100 60,250 100 100 Per cent. Total. Federal Reserve Bank. October. November. December. 1918 1919 Boston New York.. . Philadelphia Cleveland Eichmond Altanta Chicago St. Louis. . Minneapolis Kansas City Dallas $350 $300 Total—1919 1918 1917 Per cent—1919 1918 1917 Classes of securities purchased each month: 3$ per cent bonds 4 per cent bonds 4 J per cent bonds Victory notes 100 500 500 153,800 500 3 250 $50 San Francisco 50 50 1,305,750 190,400 1.76 .23 350 93 550 1,546,946 .02 .13 1.90 4,200 36,850 21,396,420 .24 50 300 3 250 323,850 850 7,025 1,172,150 103,900 3,900 19,482,250 $1,418,116 7 646 600 12,274,250 4 159 700 1,137,500 7,924 900 94,000 40,985,760 8,520,400 28,200 91,950 2,050,600 650 050 615,650 1,187,240 1,3S4,950 2,142,600 1918 1917 1.79 11.53 1.74 2.90 32.59 14.83 9.38 .11 .58 .03 8.75 .03 .14 .01 26.33 .13 .18 18.44 .05 .41 66.73 11.51 .04 .12 2.77 15.05 5.10 1.39 9.72 50.27 .80 .75 1.46 1.71 2.63 73,996,313 81, 537,316 100.00 100. 00 100. 00 26.24 350 3,350 $8,529,063 24 119,000 10,973, 050 1919 1,756 575 .05 500 50 $31,400 51 000 2,000 10 250 1917 1,700 1,000,000 327,325 427,550 N o . 4:5.—Total amounts of United States certificates of indebtedness purchased by Federal Reserve Banks during each month in 1919. Federal Reserve Bank. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas C i t y . . . Dallas San Francisco. Total—1919. 1918. March. April. S3, 000,000 317, 375,500 1, 000,000 1, 550,000 76,000 1, 000,000 $2,000,000 49,386,500 4,550,000 2,772,500 $2,944,000 62,263,000 2,660,000 3,322,000 1,010,000 1,000,000 994,000 166,000 725,000 50,543,000 2,500,000 24,370,000 873,500 500,000 165,500 731,000 500,000 3,000,000 2,500,000 2,450,500 924,000 500,000 2,778,500 828,447,000 511,542,000 326,327,000 518,192,000 88,693,500 1,089,231,860 83,842,000 321,326,300 January. $7,666,000 716,083,000 1,860,000 16,485,000 15,414,000 1,167,000 6.457,000 500,000 8,989,500 2,557,500 February. May. June. July. $1,000,000 114,359,000 8,579,500 1,271,000 3,500,000 1,050,000 3,000,000 5,122,000 $4,520,000 204,727,000 1,670,000 800,500 5,019,000 796,000 6,311,500 718,000 580,500 500 000 912,000 86,537,500 184,425,500 150,808,500 415,800,500 232,845,000 21, 797,000 $75,311,500 1,500,000 1,259,500 500,000 735,000 2,030,000 2,000,000 878,000 653,500 2,152,000 3,179,500 1,550,000 6,000 14,000,000 d t w w o Federal Reserve Bank. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. Total—1919. 1918. August. $100,000 99,464,000 2,707,000 4,044,000 1,100,000 2,000,000 61,193,500 September. $31, 170,000 858, 955,000 16, 087,500 179, 754,500 16, 600,000 19, 000,000 652, 755,000 October. $2,498,000 43,431,000 3,144,500 607,000 1,100,000 1,100,000 11,240,000 31,000 November. $1,516,000 35,948,000 3,343,000 3,163,000 200,000 1,101,000 2,845,000 1,275,000 176,000 December. $4,257,000 555,628,000 5,336,000 67,199,000 400,000 1846 $76,620, 000 5,003,904, 500 56,199, 000 52, 919,500 284, 607,000 4,736,162,846 53,393,000 409,500 000,000 28,963,000 180,874,000 30,221,500 1,870,087,500 72,452,500 56,887,000 758,361,346 85,582,000 631,044,500 219,309,000 1,747,880,000 1 $60, 671,000 3,132, 931,500 92,002,500 3,857,500 5,548,500 5,406,500 3,575,000 15,150,500 6,165,000 800,000 610,500 2,000,000 4,510,000 810,000 Total, 1918. 40, 440,000 28, 669,846 848, 523,000 18; 785,500 101, 891,500 31, 791,500 19; 406,000 115, 526,500 2,690,000 883,500 1,036,500 500,000 6,881,000 Total, 1919. 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 X M w I—I 5,776,352,160 United States war savings certificate. •a 1 E w to o N o . 46.—Amount of 1-year 2 per cent certificates of indebtedness purchased under the provisions of the Pittman Act by Federal Reserve Banks during each month in 1919 and deposited with the United States Treasurer as security for Federal Reserve bank notes. Month. January — February.. March April May June July August September. October.... November.. December.. Boston. $2,666,000 3,000,000 New York. Philadelphia. $2,521,000 $1,825,000 1,000,000 4,500, 000 2,000,000 1,500,000 3,000,000 2,000,000 2,500,000 500,000 1,500,000 1,100,000 $1,202,000 499,000 2,600,000 1,500,000 1,000,000 1,040,000 1,000,000 2,000,000 3,000,000 ,399,000 13,841,000 9,458,000 8,375,000 3,885,000 2,000,000 2,500,000 4,520,000 500,000 500,000 3,600,000 6,200,000 6,300,000 4,000,000 300,000 Cleveland. 400,000 Total- -1919. 14,686,000 24,321,000 21,425,000 1918. 6,750,000 34,955,000 8,855,000 Richmond. 76,000 Atlanta. SI, 167, 1,000, to o Chicago. $2,445,000 1,000, 500,000 500,000 500,000 100,000 600,000 100,000 200,000 400,000 500, 500, 1,000, 2,000, 1,000, 1,100, 1,100, 10,367,000 5,297,000 3,000,000 2,000,000 3,000,000 3,000,000 6,000,000 4,000,000 2,000,000 n§ 25,445,000 14,167,000 w o Month. St. Louis. January... February March... April May June Tuly August $500,000 1,000,000 2,500,000 2,500,000 2,000,000 2,000,000 Kansas City. $1,030,000 SI, 821,000 $725,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 September October.. 500,000 ... 500,000 500,000 3,000,000 1,500,000 1,000,000 November December . Total—1919 1918 . . . . Dallas. Minneapolis. 4,130,000 4,350,000 $1,000,000 1,000,000 500,000 500,000 800,000 1,000,000 500,000 100,000 832,000 1,500,000 2,600,000 200,000 100,000 10,500,000 6,568,000 San Francisco. 9,321,000 3,499,000 5,125,000 3,175,000 7,132,000 3,748,000 Total, 1919. 118,301,000 6,575,000 14 100 000 13,000,000 10,000 000 12,040,000 17,452,000 24,100,000 20,900,000 14,300,000 2,800,000 1,100,000 Total, 1918. X $6,000,000 20,000,000 35,217,000 12,495,000 30,995,000 154,668,000 104,707,000 N O T E . -Figures for 1919 do not include certificates whose maturity was extended for one year by the Secretary of the Treasury. U2 to o Or No, 47.—Discount mid open market operations of Federal Reserve Banks diirini 1919, by classes of investments. [Figures are exclusive of rediscounts and sales of discounted and purchased paver between Federal Reserve Banks.] United States securities. es bought in open market. Bills discounted for member banks. Bonds. Federal Reserve Bank. Secured by Government war obligations. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total—1919 1918 Trade acceptances. All other. $4,486,153,537 $10,820,992 $178,423, 40,453,893,075 57,133,089 1,938,464, 10,209,981,525 3,753,298 522,700, 2,873,440,114 14,091,343 238,324, 3,982,600,641 9,082,378 139,2C9, 1,7 658,401 8,233,847 227,885, 3,955,045,191 6,580,735 594,686, 1,895,246,180 7,946,180 197,438, 521,981,023 565,114 138,974 1,188,261,057 7,486,315 359,849, 1,105,059,651 1,887,002 117,999, 1,745,959,276 10,839,780 194,263, Total. Bankers'. 675,398,246 $356, 634,133 449,491,134 1,191, 492,283 736,435,271 14, 028,450 125,856,369 257, 361,390 130,942,909 52, 977,382 005,777,582 51, 661,193 556,312,145 291, 950,839 100,630,596 87, 502,626 661,520,379 108, 714,435 555,596,623 26, 086,106 224,946,145 415,233 9.51,062,331 337, 795,028 174,187,279,671 138,420,073 4,848,269,986 79,173,969,730 \2, 788,619,098 33,390,079,891 187,372,579 6,175,481,377 39,752,933,847 1,748, 502,825 Trade. Total. 3 per cent. 3 \ per cent. ! { 4 per cent. $4,149,624 1360,783,757 19,906,694 1,211,398,977 20,000 14,048,450 4,388,927 261,750,317 52,977,382 60,969 51,661,193 | 292,011,808 87,502,626 j $1,550 1,000 $200 j . 345,826,718 36,557,904 2, 825,177,002 ! 61,035,970 1,809,538,795 ! $455,000 w 500 ! . 108,714,435 26,086,106 12,415,233 8,031,690 200 146,000 400 1,000 .$1,000,000 7,025 171,150 1,700 ; 1,000,000 ! 327,325 7,578,050 44,230,988 j 21,732,275 1 w O Municipal warrants. United States securities. Federal Reserve Bank. Boston New York Philadelphia Cleveland . Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas. San Francisco Total—1919 1918 Victory notes. $29,850 50,000 2,000 10,250 300 7,600 3,250 323,850 450 427,550 .. Certificates of indebtedness. Total. City. State. All other. Total. Total. 1919 1918 X $60,671,000 3,132,931,500 52,919,500 284;607,000 40,440,000 28,669,846 848,523,000 18,785,500 101,891,500 31,791,500 19,406,000 115,526,500 $60,702,400 3,132,982,500 52,921,500 284,617,250 40,440,500 28,823,646 848,523,500 18,788,750 102,215,350 31,792,350 19,413,025 116,698,650 4,736,162,846 25,776,352,160 4,737,919,421 5,850,348,473 $1,000 $1,000 . 1,000 547,373 $300,000 $862,229 1,000 1,709,602 $5,096,884,403 46,793,872,611 10,803,405,221 3,672,223,936 4,224,360,791 2,086,263,421 5,696,847,453 2,206,921,972 872,450,164 11,613,475,079 1,256,774,403 2,413,587,699 $2,039,591,682 30,509,109,901 1,978,466,646 1,766,465,316 2,263,333,762 1,016,112,678 3,536,026,327 1,117,801,374 543,785,279 859,342,349 635,746,546 1,148,748,857 M h-i W i—i 1-3 3 o 86,737,067,153 47,414,530,717 1 Exclusive of $22,000 War Finance Corporation bonds held temporarily pending payment by subscribers. 2 Includes $520,000 of 1-year Treasury notes. > j W GO to o No. 48.—Discount and open market operations of Federal Reserve Banks during 1919 and 1918, by months and classes of investments. to o Acceptances bought in open market. Bills discounted for member banks. Month and year. Fanuary... February March kpril May Tune Fuly August September 3ctober November December Total—1919 1918 Secured by Trade Government war obligations. acceptances. All other. Total. Bankers'. Trade. $5,713,902,819 4,755,629,365 5,271,540,337 5,693,810,521 7,169,366,551 6,036,277,709 6,824,987,638 6,170,782,470 6,238,301,224 7,348,941,909 6,761,541,757 6,202,197,373 $10,904,213 8,879,437 8,561,401 8,071,368 7,061,335 7,946,132 8,504,928 6,427,411 10,608,322 16,064,284 21,923,920 23,467,322 $269,575,233 $5,994, 382,265 216,426,712 4,980, 935,514 193,462,436 5,473, 564,174 199,519,751 5,901, 401,640 209,405,170 7,385, 833,056 284,687,689 6,328, 911,530 349,942,509 7,183,435,073 256,452,405 6,433,662,286 477,245,711 6,726, 155,257 8,060,317,969 695,311,776 631,032,698 7,414, 498,375 1,065,207,896 7,290; 872,591 $198,459,983 144,654,729 139,417,449 137,277,773 145,753,730 290,270,237 274,815,922 192,785,911 202,274,898 330,272,722 337,008,575 395,627,169 $3, 031,723 2 755,364 4 244,107 3 361,136 1, 896,462 1 645,209 1 668,908 1 424,714 2, 773,437 4 988,990 686,930 5, 080,924 74,187,279,671 33,390,079,891 138,420,073 4,848,269,986 79,173,969,730 187,372,579 16,175,481,377 39,752,933,847 2,788,619,098 1,748,502,825 36,557,904 61,035,970 Total. United States bonds, 3 per cent. $201,491,706 147,410,093 143,661,556 140,638,909 147,650,192 291,915,446 276,484,830 194,210,625 205,048,335 335,261,712 340,695,505 400,708,093 2,825,177,002 1,809,538,795 $455,000 3* per cent. $1,000 00 d > o 200 mo 1,700 7,578,050 F w o 4 percent. 4J per cent. Total. Municipal warrants. United States bonds. Month and year. Victory United States Total notes. certificates of United States indebtedness. securities. City. State. Allother. Total. 1919 1918 X January February. March.. . April May June July August September October November December $1,000,000 .... $14,175 146 200 165,050 1,300 50 100 . .... Total—1919 1918 50 50 350 ! 1,000,000 44,230,988 327,325 21,732,275 $85,900 277,550 60,250 100 100 300 3.350 427,550 1 $828,447,000 326,327,000 88,693,500 83,842,000 86,537,500 150,808,500 232,845,000 180,874,000 1,870,087,500 72,452,500 56,887,000 758,361,346 $829,461,175 326,473,200 88,859,550 83,843,300 86,623,400 151,086,100 232,905,250 180,874,200 1,870,087,800 72,452,550 56,887,350 758,365,546 $1,000 4,736,162,846 5,776,919,160 4,737,919,421 5,850,348,473 1,000 547,373 $1,000 $300,000 $862,229 1,000 1,709,602 $7,025,336,146 $1,525,984,729 5,454,818,807 1,443,795,053 5,706,085,280 1,993,080,060 6 125 883 849 2 605 719 776 7,620,106,648 3,309,207,111 6,771,913,076 3,655,663,674 7,692,825,153 3,490,037,616 6,808,747,111 3,955,611,937 8,801,291,392 4,953,969,540 8,468,032,231 6,793,018,635 5,569,708,767 7,812,081,230 8,118,733,819 8,449,946,230 W M w s II O Ul o 86,737,067,153 47,414,530,717 i Includes $520,000 of 1-year Treasury notes. > w Ul cc to No. 49.— Total discount and open market operations of each Federal Reserve Bunk, by months, during 1919. O Federal Reserve Bank. Boston New York Philadelphia..... Cleveland , Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total—1919 1918 January. February. March. April. May. June. July. 36, 764,059 104, 945,378 92, 871,920 230, 638,925 $379,081,553 3,041,498,231 643,150,003 212,424,705 279,254,369 111,680,376 276,621,470 127,923,659 18,047,882 90,856,720 93,354,695 180,925,144 $346,636,316 2,734,369,085 839,369,743 265,444,757 338,679,714 148,403,707 355,519,544 197,552,229 57,813,649 130,255,444 105,425,502 186,615,590 $525, 426,096 2,801, 924,430 920, 617,049 242; 261,677 367, 169,727 155, 502,011 368, 358 378 204, 981,046 80, 795,670 i 146, 473,942 118, 360,855 194, 012,968 $462,447,748 4,203,152,964 947,513,540 256,556,647 371,425,045 169,058,842 436,906,387 212,712,193 86,639,295 148,043,063 130,702,524 194,948,400 $395,725,026 3,354,611,216 1,088,293,030 252,156,990 406,366,036 168,556,993 423,769,919 184,850,182 55,528,177 142,111,061 114,043,122 185,901,324 $435,552,808 4,323,320,699 1,034,505,184 319,387,014 426,996,327 182,993,039 408,088,731 154,273,131 40,098,143 110,503,447 100,713,599 156,393,031 7,025,336,146 1,525,'984,729 5,454,818,807 1,443,795,053 5,706,085,280 1,993,080,060 6,125,883 849 2,605,719,776 7,620,106,648 3,309,207,111 6,771,913,076 3,655,663,674 7,692,825,153 3,490,037,616 $403, 009,318 4,259, 725,220 686, 466,138 252, 229,449 302, 853,721 175, 091,730 330, 839,363 149, 900,925 o 3 w W O Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total—1919 1918 August. * September. October. $288, 044,078 3,693. 076,844 I 925. 992,018 294, 517,467 389, 592,648 j 18.5, 931,984 i 462. 339,271 | 159, 890,092 48, 525,463 110, 264,600 95, 939,511 154 633,135 $365,574,774 4,419, 116,180 1,020,490,694 503, 632,546 366, 747,953 235, 739,496 1,054,796,746 215,577,975 132,942,610 146,971,107 125,337,284 214,364,027 $432, 396,299 4,660, 916,510 1,155, 157,238 337, 833,565 325, 092,997 216, 636,862 455, 306,043 223, 927,323 112, 823,897 172, 215,594 138, 814,107 236, 911,796 6,808,747,111 8,801,291,392 3,955,611,937 4,953,969,540 8,468,032,231 6,793,018,635 November. ,416,062 4,654, 764,138 689, 8-12,281 314, 402,869 268, 086,174 179, 499,782 484, 729,360 186, 711,100 99, 631,532 147, 934,891 77, 093,833 216, 999,208 7,812,081,230 5,569,708,767 Exclusive of $22,000 War Finance Corporation bonds held temporarily pending payment by subscribers. December. Total. $570, 574,325 4,647, 397,094 852; 038,303 421, 376,250 382, 096,080 157, 168,599 639, 572,241 188, 622,117 102; 839,787 162, 899,832 64, 117,451 261, 244,151 $5,096, 884,403 46,793, 872,611 10,803, 405,221 3,672, 223,936 4,224, 360,791 2,086, 263,421 5,696, 847,453 2,206, 921,972 872, 450,164 1,613, 475,079 1,256, 774,403 2,413, 587,699 8,449,946,230 8,118,733,819 86,737,067,153 47,414,530,717 W I-H H O s I IH o o I <3 to Exhibit E.—GOLD SETTLEMENT FUND. to N o . 50.—Summary of transactions, Jan. 1 to Dec. 31, 1919. GOLD SETTLEMENT FUND. [In thousands of dollars.] Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total Aggregate Interbank transfers. deposits drawals and Gold trans- fers transfrom deposits. and fers to agent's agent's fund. Debits. fund. Credits. Balance Dec. 31, 1918. Gold withdrawals. 37,293 66,790 37,413 52,126 14,254 6,302 106,772 15,974 23,774 23,237 6,935 11,056 280 80,120 1,400 61,800 3,318 1,625 170 27,902 250 559 6,139 208,730 47,054 220,000 177,279 48,468 81,852 72,904 244,681 78,616 41,641 18,456 21,711 71,642 50,780 165,120 185,400 86,800 89,318 102,025 433,610 216,402 47,750 10,559 25,939 458,230 401,926 392,293 1,124,304 1,871,933 50,554 738,233 225,550 230,000 392,958 3,297,644 193,176 561,261 1,028,191 78,468 918,369 132,122 101,852 949,399 845,347 86,904 133,651 131,127 476,681 2,115,191 1,052,986 191,116 397,140 119,576 75,141 682,927 357,671 31,456 331,356 106,364 22,711 460,125 488,930 261,685 250,249 145,351 1,799,744 7,930,859 7,930,859 Summary of changes Settlements from Jan. 1,1919. to Dec. 31, 1919, Balance in ownership of in fund both inclusive. gold by banks at close through transfers • of busi- and settlements. ness Dec. 31, Net Total Total Net 1919. debits. debits. credits. credits. Decrease. Increase. 3,030,399 480,440 15,435 3,526,274 5,263,553 20,434,208 6,889,785 4,776,924 5,472,082 1,967,295 7,833,044 4,809,048 1,320,379 3,350,391 1,970,174 1,966,510 5,773,519 17,403,809 6,409,345 5,563,225 5,574,547 1,997,971 8,821,885 5,113,822 1,599,342 3,557,182 1,954,739 2,284,007 66,053,393 66,053,393 509,966 2,717 125,713 13,510 317,497 34,351 5,957 31,679 43,848 25,201 19,333 76,479 17,898 4,872 25,933 17 077 27,109 3,526,274 329,737 281,385 786,301 102,465 30,676 988,841 304,774 278,963 206,791 o H O w 54 1,587 28,152 73,364 > 27,210 46,293 18,201 13,370 212,599 281,385 C FEDERAL RESERVE AGENTS' FUND. [In thousands of dollars.] Federal Reserve agent at— Boston New York... Balance, Gold Dec.31,1918. withdrawals. Gold deposit?. 133,000 45,000 166,000 11,500 88,000 65,670 243,000 81,200 35,000 54,000 25,500 63,500 100,000 Philadelphia. Cleveland.... Richmond... Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas San Francisco 46,000 80,000 72,287 90,000 60,000 37,270 270,704 59,131 40,800 51,360 6,684 114,261 Total... 928,497 1,011,370 165,000 1,500 6,000 43,000 14,500 Deposits Withdrawals through Total for transfers withdrawals. transfers to bank. from bank. 3,500 10,000 15,897 30,000 20,000 14,000 232,000 112,500 33,500 13,000 j 1,000 | 190,043 I 675,440 Total deposits. 150,500 85,000 184,000 26,500 86,000' 100,400 Balance at close of business, Dec.31, 1919. 50,500 85,000 184,000 25,000 86,000 100,400 433,440 188,500 47,500 10,000 19,800 249,500 136,500 55,000 181,897 41,500 108,000 79,670 475,000 193,700 68,500 67,000 26,500 253,543 188,500 47,500 53,000 34,300 249,500 60,000 110,000 74,390 75,000 38,000 58,000 235,144 53,931 19,800 37,360 14,484 110,218 1,479,640 1,686,810 1,644,640 886,327 439,440 X H H hrj 1o F o H 1-3 H fed to CO N o . 51.—Weekly operations throujh the gold settlement fund during 1919. [In thousands of dollars.] Transactions, all Federal Reserve Banks. Week ending— Total clearings (debits only.) Total transfers (debits only). Total combined clearings and transfers. Transactions, Federal Reserve Bank of New York. Gross debits in clearings. Clearings and transTransfers Transfers Clearings. Transfers. fers combined. from other to other Gross credits in Federal Federal clearings. Reserve Reserve Banks. Banks. Net debit. Net credit.! Net debit. Net credit. 1919. Jan. 30. 6. 13. 20. 27.. Mar. 6. 13. 20.. 27.. Apr. 3 . 10. 17. 24. May 1. 8. 15. 22. 29. Feb. 1,014,823 1,155,677 1,020,725 1,139,184 1,009,724 1,010,963 788,963 1,117,683 896,434 1,013,443 976,960 1,114,020 1,102,339 1,086,410 1,026,768 1,083,304 1,014,720 1,050,756 1,042,949 1,022,076 1,179,312 1,079,781 218,876 192,844 65,942 192,810 80,909 179,521 61,162 103,760 79,672 92,500 150,000 216,496 201,926 214,007 51,000 150,500 103,967 140,014 131,180 112,790 209,591 191,964 1,233,699 1,348,521 1,086,667 1,331,994 1,090,633 1,190,484 850,125 1,221,443 976,106 1,105,943 1,126,960 1,330,516 1,304,265 1,300,417 1,077,768 1,233,804 1,118,687 1,190,770 1,174,129 1,134,866 1,388,903 1,271,745 400,905 455,265 | 337,491 411,451 362,917 342,889 288,205 357,494 281,722 326,035 320,736 384,205 402,118 350,726 368,547 345,858 292,696 330,136 333,923 327,025 343,954 339,172 243,630 293,486 286,575 265,818 255,733 257,463 180,530 317,139 234,027 269,543 250,667 292,448 250,263 310,495 255,207 299,192 279,886 283,613 288,306 274,888 321,129 285,971 181,111 155,395 36,496 140,383 54,771 152,521 41,000 63,500 50,131 70,500 120,000 160,000 165,000 119,000 25,000 70,000 21,000 36,361 26,895 5,000 95,000 70,000 157,275 161,779 45 50,916 145,633 107,184 85,426 496 30,007 1,967 1,954 1,641 1,963 401 107,675 40,355 47,695 56,492 70,069 91,757 151.854 40,231 113,340 46,666 12,810 46,523 45,617 52,137 22,825 53,201 181,111 155,395 36,496 140,338 54,771 152,521 41,000 63,500 50,131 70,500 120,000 159,504 165,000 88,993 25,000 70,000 21,000 34,394 24,941 3,359 93,037 12,129 20,676 48,778 70,212 16,398 June 5 . . . 12... 19... 26... July 3 . . . . 10... 17.... 24... 31.... Aug. 7 . . . . 14... 21.... 28... Sept. 4 . . . 11.... 18.... 25... 2... 9... 16... 23... 30.... Nov. 6 . . . 13... 20... 26... Dec. 4 . . . 11... 18... 24... 31... Oct. Total 1,010,089 | 1,145,978 | 1,433,166 ! 1,359,793 1,324,223 1,025,728 1,411,078 1,400,774 | 1,213,926 1,310,594 1,328,100 1,434,295 1,303,133 1,083,871 1,391,775 1,487,666 1,634,744 1,458,773 1,463,637 1,371,694 1,745,586 1,577,673 1,432,615 1,521,155 1,758,322 1,409,957 1,783,514 1,478,042 1,704,302 1,452,209 1,481,085 66,884,511 180,320 100.131 263,741 285,722 361,192 119,493 239,556 176,282 272,020 160,114 223,925 185,178 108,036 136,878 180.132 242,195 305,375 138,630 147,090 62,101 116,489 104,330 101,218 75,548 36,327 48,754 94,023 75,348 51,117 244,639 135,761 1,190,409 1,246,109 1,696,907 1,645,515 1,685,415 1,145,221 1,650,634 1,577,056 1,485,946 1,470,708 1,552,025 1,619,473 1,411,169 1,220,749 1,571,907 1,729,861 1,940,119 1,597,403 1,610,727 1,433,795 1,862,075 1,682,003 1,533,833 1,596,703 1,794,649 1,458,711 1,877,537 1,553,390 1,755,419 1,696,848 1,616,846 288,274 328,942 442,905 422,536 387,281 317,766 419,593 397,382 359,740 441,848 451,345 411,916 404,325 301,519 411,629 406,195 565,566 460,585 468,698 378,772 472,749 469,232 427,809 414,723 473,992 390,832 504,102 430,784 488,237 454,472 458,696 262,349 319,229 369,115 354,936 362,761 282,656 424,650 I 393,659 ! 341,724 | 299,022 ! 319,430! 383,637 ! 327,028 I 306,634 | 394,563 | 423,843 | 381,166 I 390.192 ! 365,750 ! 347,177 I 493,097 | 392,227 | 351,266 j 432,133 I 485, 726 I 372,906 | 493,376 | 371,901 | 445,750 348.193 366,074 34,000 i... 1,420 113,000 842 87,000 j 1,512 75,000 j 147,150 21,700 46,347 107,000 68,000 72,000 33,934 27,942 24,000 | 85,000 I 68,789 147,953 74,455 34,000 25,000 33,163 41,000 65,000 27,180 300 30,000 20,621 10,200 150,269 66,198 8,113,096 74,997,607 20,755,915 ! 17,598,179 3,448,115 I I 58,612 I. 2,551 | ! 1,420 j | ! 72,150 ! 25, 9, 73, 67, 24, 35, 5,057 3,032 18,940 31,020 16,800 13,563 4,387 750 664 1,936 1,747 I. | |. I | | i |. I | 5,115 17,066 17,648 184, 400 ! 70, 393 | 102, 948 ! 31, 595 20,348 | 77, 005 76, 543 2,667 3,634 17, 10, 2,229 58, 9,670 2,020 | 42, 106, 6,151 92, 1,898 392,958 3,235,048 17,410 11,734 | 11,133 96,670 35,110 31,855 1 2,367 j 3,634 43,796 ! 107,000 I 68,000 ! 51,300 j 33,345 I 27,942 I 20,968! 66,060 37,769 I 131,153 | 60,892 j 29,613 | 24,250 | 32,499 ; 39,064 | 63,253 27,180 ! 40,073 88,984 74,826 80,615 5,066 49,355 26,083 48,994 55,417 53,247 9,501 73,335 7,345 3 Ii 52,847 37,941 13,290 44,590 9,367 , 21,560 27,772 10,950 8,180 144,118 64,300 77,312 38,368 17,888 112,158 85,488 36,912 i 723 | 016 j 142, 826 j 20,700 ! 131, 589 | 28, 8,075 34,000' I | | \ | 17,045 47,933 34,307 37,839 28,322 I 116,483 3,171,640 1,021,455 918,876 to 216 II ANNUAL REPORT 01' THE FEDERAL RESERVE BOARD. OPERATIONS THROUGH GOLD SETTLEMENT FUND BY WEEKS DURING CALENDAR YEAR 1919. i 2000 I 0ROSS DEBITS Iti THEFUIiD THROUGH SETTLEMENTSAM) TRANSFERS. GROSS TRANSFERS THROUGH FUPID. 1800 1800 1600 1600 1400 1400 1200 1200 1000 1000 eoo 600 600 400 400 200 200 GROSS DEBITS Iff SETTLEMEPITS. JAN. FEB. MCH. AFRL MAY JUNE JULY AUG. SEPT OCT. HOV. DEC. EXHIBIT E i 500 400 300 200 100 O 100 200 300 400 S00 600 217 GOLD SETTLEMENT FUND. OPERA TIONS Or THE HEW WRK BANK THROUGH THE GOLD SETTLEMENT FUND BY WEEKS, DURING CALENDAR YEAR1919. «D: GROSS DEBITS THROUGH SETTLEMENTS AMD TRANSFERS. -Cl GROSS CREDITS THROUGH SETTLEMENTS AND TRANSFERS. ^ NET GAIN OR LOSS THROUGH SETTLEMENTS AND TRANSFERS. GROSS DEBITS THROUGH TRANSFERS. 6R0SS CREDITS THROUGH TRANSFERS. S00 soo "D«- GROSS DEBITS IN SETTLEMENTS. »C"- GROSS CREDITS IN SETTLEMENTS. I NET LOSS OR GAIN THROUGH SETTLEMENTS. 400 300 200 100 0 100 200 300 400 SOO 600 JAN. r£B. MCH.APRL MAY JUNE JULY AU6. SOT. OCT. MOV. DEC. N o . 52.—Gold settlement fund—Changes in ownership of gold throu h transfers and settlements) by weeks. OO [ In thousands of dollars.] New York. Boston. Philadelphia. Cleveland. Atlanta. Richmond. Week ending— Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease. Increase. 1919. Jan. 2 (1 dav only) 1 285 8 729 16 7,047 1,771 23 30 Feb. 6 Mar. 6 13 20 23,145 2,436 14,008 49,931 67,747 13,144 48,762 . . . 7 909 3,334 Apr 13,239 . . . . 88,340 2,097 9,131 23,334 8,190 325 i 15 22 1,210 9,055 6,863 12,949 3,429 10,613 19 26 17,731 3,228 809 1,903 5,956 3,110 1,455 11,133 38,368 17,888 2,887 866 177 1,289 16 876 9,314 5,595 7 333 1 458 20,440 1,664 8.861 4,536 1,648 3,506 6,682 . ...'. ... 19.103 4,746 5,970 6,403 i 9,020 12 947 29,115 67 411 3,543 416 572 8,510 1 225 * 12,927 6,175 315 6 450 3 4lfi 7,144 i 4 507 3,365 10, 762 1 699 7,163 ! 1,842 6,372 6,218 6,150 824 5,493 2,919 6,392 2,508 719 2,211 9,975 o 800 3,918 18,138 535 12,823 2,075 2,764 1,753 6,259 2 743 8 492 2,955 8,525 15,037 ....I 3,635 2 421 1 957 9,786 20,396 5 881 70,212 16,398 8,075 9,671 29. June 5 12 12,129 20,676 48,778 3,040 7,943 51 3,263 1,503 7,040 2,634 11,797 1 338 8,147 1,559 2,342 6,730 66,675 3,076 160 20,814 2,948 13,471 67,095 11,315 1,722 4,679 27 3 10 17 24 May 1 8 6,384 14,420 5,295 52,413 15,418 13 20 534 8,222 704 747 9 . 860 1 030 1 791 w o 3,034 686 2,803 11,714 5,552 July 3 2,044 19,987 6,071 10,458 M -3 10 17 24 §g 31.. ...... 12,496 22,920 306 1,005 14 21 28 I- Sept. 4... F 1 8,622 2,360 12,265 Oct. 2 9 16.. 23... . .. 1,098 772 15,151 16,471 Nov. 6 13.. 20... 1,201 8,368 . . . 26 Dec. 4 11 18 24 31 ... Total Net increase Net decrease 359 17 269 1,760 217,071 2 717 5,752 4,523 26,083 48,994 55,417 53,247 9,501 73,335 7,345 5,002 3,167 2,648 6,176 2,957 21,560 47 933 34 307 5,162 5,390 28,322 214,354 1,021,455 125 713 879 7,611 3,452 18,990 8,270 111,905 13 510 98,395 1,812 15,630 1,139 6,058 3,689 6,581 5 484 8,712 253,705 54 W w 8,101 H I—I 800 6,462 2,914 2,233 2,344 5,822 2,955 1,438 2,136 146 7,222 8,364 4 762 115,038 2,470 5,039 494 2,612 8,996 831 1,575 17,552 253,651 2,153 3,557 3,188 348 1,227 4,069 113,451 81,390 14 919 19 741 575 6,816 895,742 9,248 15,879 14,631 5 145 827 37,839 4,671 4,025 1,634 4 060 3,440 1 833 2,134 17 045 242 3,620 422 4,357 13,217 1 760 6,750 44,500 9,367 2 625 7,438 758 11,600 7,986 3 152 2,865 2 093 4 323 37,941 13 290 810 4,663 3 372 3,448 7,527 2 590 15 317 2,793 1 737 1,508 52,84? 7,286 30 6,557 3 428 12,155 14 078 3 024 5 835 5,066 28,937 25 797 49,355 8,163 11 18 5 414 6,045 3,397 2,445 3,818 2,957 26 24,627 15,211 708 74,826 80,615 11,362 Ol 3,550 40 073 88,984 19,823 w Aug. 7 b 9 96,670 35,110 31,855 ui n 1 109,542 28,152 1 £87 to CD No. 52.—Gold settlement fund—Changes in ownership of gold through transfers and settlements, by weeks—Continued. to o [In thousands of dollars.] Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Total. Week ending— Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease. Incroase. Decrease. Increase. Decrease Increase. 1919. 4 973 10,029 Jan. 2 (1 day only) 9. 16 23 30 Feb. 6 13 20 27 Mar. 6 . . . 40,430 32,437 .. 19 835 2 388 29,639 . . . . 21,998 859 6,491 13 20 27 . . . . Apr. 3 16 290 20 213 21 187 15,188 10 28,182 2,766 17 . . 5,772 16,466 30,026 8,814 3,963 22,033 7,665 1,051 5,161 11,735 2,209 3,612 8,284 13 123 4,201 2,468 8,056 276 164 10,901 * 5,034 12,151 1,837 439 5,399 8,796 2,368 10,574 6,544 3,855 2,883 4,690 6,422 5,092 19,721 5,365 860 5,287 3,977 5,154 7,410 14,545 9,407 4,091 3,988 1,735 1,165 . 14,708 4,095 2,883 4,072 4,581 4 224 2,377 3,286 3,682 5 509 485 1,811 2 475 5,209 717 1,163 15 967 7,445 1,248 1 959 1,347 7,616 554 5,287 4,099 1 145 1,840 2,952 5,365 679 7,292 9,313 659 4 836 276 4 174 2,452 1,059 2,355 701 395 3,558 5 162 2,797 16,782 10,623 2 212 10,553 8,506 7,002 2,262 1 577 2,963 6 409 6,502 11 261 12, 724 4 258 3,394 6,097 4,003 448 4,490 2,660 511 2,571 5 034 2,492 1 777 12,717 15,553 1,918 2 743 4,908 2,856 10,087 990 21,768 2 387 24 May 1 8 15 22 29 JunB 5 12 19 26 2,506 568 6,602 2 472 10,244 2,259 183 5,860 811 4,055 2,833 1 490 6,837 12,257 15,128 26,112 51,333 40,366 62,686 72,137 76,163 39,191 21,413 36,699 57,416 96,712 46,945 56,491 94,376 35,046 29,454 24,047 42,985 59 481 75,304 47,964 31,274 27,891 60,415 63,776 July 3. 10. 17.. 24 31 Aug. 7.. ... . . . 66 19,755 2,182 4,301 2,068 38,596 20,819 . 10,335 3,590 10,485 14 21. 28.. Sept. 4 11 18 .... 17,578 25 3,806 9,603 4,966 1,432 . . .„ 7,659 41,485 . . .. Bee 4 15,530 40,981 11,566 17 909 11 18 24 31 Total Net increase Net decrease 2 868 2,637 4 792 32,405 1,691 10,212 469,728 73,364 584 1,580 762 314 2,666 7,450 794 12,629 7,196 2 960 261 1,739 2,826 396,364 128,785 3,711 5,280 10,573 22,104 2 242 4,230 3 973 1 740 155,995 27,210 154,021 46 293 180,166 18,201 2,359 19,345 10,333 557 4 618 29,397 7,548 9,486 3,287 1,042 456 4,705 716 14,464 499 2,254 1,208 9 821 2,934 5,162 107,728 5,449 314 16 604 11,456 7 321 690 5,730 1 681 10,898 8,243 9,456 345 4 763 5,595 12,684 17,876 5 594 1 076 981 3,026 4,920 1,118 31,120 2,183 81 3 321 1,307 10,154 8,306 3,181 12,905 1,752 2,424 2,803 7,165 20 343 1 531 1,377 16,566 6 420 5,593 1 911 518 2,845 18,770 4 507 4,550 2,370 3,455 5 475 3,563 26,722 16 3 659 3 918 5 913 12,880 3,810 9. 9 522 4,429 6,991 3 612 21,064 26,005 6,083 3,957 19,930 6,099 Oct. 2. 23 30 Nov 6. 13 20 26 17,645 5,741 43,997 161,965 17,481 15,118 9,155 218 1,363 4,920 22,371 14,837 5,974 12,467 16,414 13,331 18,297 9,583 14,974 6,330 1,420 1 079 2 740 5 513 7 880 4,679 71,112 4,562 6,772 84,482 13,370 123,723 336,322 212,599 106,771 56,141 60,822 05,962 89,541 77,970 91,926 33,715 58,614 42,245 67,758 71,047 64,426 21,440 84,157 30,182 72,564 50,788 64,770 79,871 26,568 37,956 46,090 79,059 58,684 55,518 42,657 2,928,047 281,385 281,385 to to to Exhibit F.—CLEARING OPERATIONS. N o . 53.—Operations of the Federal Reserve clearing system Jan. 1 to Dec. SI, 1919. Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total Items drawn on banks in F e d e r a l R e s e r v e Bank city. Number. Amount. 5,941,776 7,359,215 12,051,043 2,073,358 852,423 1,061,425 6,499,319 2,003,865 1,865,012 2,002,947 603,014 892,688 $7,295,404,959 22,658,510,132 8,907,672,377 2,447,238,428 2,163,826,000 1,001,447,360 8,207,773,000 2,867,534,767 1,502,509,473 3,392,275,702 863,236,590 1,173,663,890 Items drawn on banks in Federal Reserve branch cities. Amount. Number. Items drawn on banks in district outside Federal Reserve Bank and branch cities. Items f o r w a r d e d direct to banks in other Federal Reserve districts. Items drawn on United States treasurer. Number. Number. Amount. Number. 27,427,592 $623,292,894 41,866,397 15,379,260 4,439,940,802 19,994,217 1,817,519,340 15,196,386 1,031,494,078 7,971,684 981,781,000 23,274,806 1,314,007,992 12,886,664 8,021,304 1,229,091,504 22,004,489 281,020,111 9,591,545 1,397,567,072 10,562,938 893,748 3,971,168 1,772,463 1,325,039 1,420,996 1,711,435 1,491,838 547,925 1,697,871 Amount. $4,109,154,120 19,594,682,115 2,129,201,167 3,402,145,518 3,092,406,700 1,502,571,449 3,382,981,000 1,393,981,053 772,659,605 3,122,524,234 2,697,697,933 1,140,899,386 43,206,085 62,481,092,678 14,832,483 13,115,714,793 214,177,282 46,340,904,280 40,977 1,486 61 897 cj Amount. Number. 2,203,930 $724,044,603 35,573,298 13,052,056 7,653,564,995 63,171,416 2,117,101 923,192,809 29,547,404 $13,578,423 1,928,493 509,262,826 28,008,213 786,155 165,877,305 18,607,427 1,485,934 396,820,055 11,844,082 4,231,417 918,985,000 35,426,538 2,224,362 286,874,571 18,826,326 357,880 21,433,878 66,960,349 10,245,682 1,009,583 1,751,252 166,155,176 27,250,587 1,264,544 157,168,692 12,007,028 1,218,211 1,496,600 2,549,564,449 14,650,994 Amount. $12,128,603,682 50,530,050,136 11,960,066,353 10,812,165,997 7,239,629,345 3,932,332,942 13,491,520,000 5,862,398,383 2,363,563,305 7,911,056,199 3,999,123,326 6,262,913,008 w 3 g 43,421 37,240,095 32,899,724 14,518,470,830 305,158,995 136,493,422,676 1 1 Total, i Represents total of items handled exclusive of duplications. 1 2 forwarded to other Items forwarded to branches Items forwarded to head Items Federal Reserve Banks and office by branches. in own district. branches. Federal Reserve Bank. Number. Boston. New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis.. . Minneapolis . . _ t Kansas City Dallas. . San Francisco •. . . Total.... Amount. Number. Amount. Grand total. Number. Amount. $926,195,000 5,791,991,010 2,806,870,819 1,141,488,326 1,844,390,100 926,446,065 481,111,000 146,137,487 406,445,334 1,595,553,631 686,845,129 477,349,713 36,234,271 74,463,917 37,003,869 29,788,929 20,934,355 14,255,861 37,592,321 19,413,795 10,747,696 30,801,474 14,149,392 16,208,587 $13,054,798,682 56,540,748,116 14,766,937,172 12,456,799,189 9,304,179,945 5,487,105,017 14,125,543,000 6,110,659,652 2,770,008,639 10,112,923,116 4,865,992,227 7,305,320,712 17,230,823,614 341,594,427 156,901,015,467 238,776 $100,489,001 158,869 $118,217,969 508,916 43,593 1,100,122 88,268 196,141 404,944,059 104,219,100 252,123,984 95,674,000 71,498,334 206,928 79,230 258,007 43,740 109,979 98,200,807 115,941,400 376,202,026 57,238,000 30,625,448 1,022,556 512 020 1,133,551 419,011,545 123,371,930 485,495,520 197,610 224,851 46,792 187,301,741 56,651,842 79,562,471 660,973 10,894,856 7,456,465 1,064,872 2,204,105 1,053,650 2,033,775 281,309 502,014 2,330,721 1,405,493 377,250 4,843,943 2,056,827,473 1,326,006 1,119,941,704 30,265,483 Number. Amount. X M 2 s 3 O fcO to CO No. 54.—Growth of the Federal Reserve clearing system, by monthly periods, from Apr. 15, 1917, to Jan. IS, 1920, inclusive. Average daily number of items handled. Average daily amount of items handled. Drawn on— Drawn on— Banks in Federal Reserve city. Banks in district outside Federal Reserve city. 31,162 33,767 37,898 38,476 36,727 36,306 40,591 47,574 47,678 168,607 171,093 179,193 182,622 175,625 182,191 212,935 232,723 240,756 12,582 15,925 16,344 19,100 19,533 23,492 26,797 30,426 33,806 48,549 46,207 51,408 55,034 49,569 51,055 63,549 50,229 55,123 64,931 82,434 85,174 253,458 227,312 259,531 271,506 287,061 295,056 391,264 406,330 441,979 495,441 550,484 590,685 38,130 48,224 58,991 59,228 60,771 77,750 82,536 81,323 87,213 106,539 98,168 135,173 Treasurer of Total Total number number of nonof member member banks on banks. par list. Banks in Federal Reserve city. Banks in district outside Federal Reserve city. Treasurer of United States. Total. 212,351 220,785 233,435 240,198 231,885 241,989 280,323 310,723 322,240 $60,288,002 87,370,859 97,322,883 109,722,256 98,075,919 100,331,694 128,271,466 166,552,773 171,723,439 $32,666,959 36,473,163 38,599,461 41,004,720 40,353,278 41,323,621 47,476,204 64,296,210 84,441,761 $2,643,408 3,597,865 4,414,508 11,637,899 9,701,569 11,006,515 13,518,566 17,496,974 27,179,053 $95,598,369 127,441,887 140,336,852 162,364,875 j 148,130,766 | 152,661,830 I 189,266,236 248,345,957 j 283,343,253 j 7,625 7,634 7,651 7,666 7,683 7,718 7,747 7,826 7,823 8,607 8,926 8,789 8,805 8,837 9,934 9,052 9,210 9,321 340,137 321,743 369,930 385,768 397,401 423,861 537,349 537,882 584,315 666,911 731,086 811,032 148,033,108 153,847,568 153,701,375 159,441,188 178,372,385 164,539,000 192,220,658 172,600,132 182,321,867 208,639,006 231,014,467 219,162,199 89,065,135 80,248,466 113,134,162 98,201,962 114,099,520 113,407,619 143, 751,620 131,047,263 145,374,804 169,025,374 191,310,103 167,471,893 21,116,293 I 21,316,033 I 25,827,757 | 31,563,675 ! 30,928,185 | 39,054,003 j 47,181,467 i 41,063,646 j 45,695,643 j 51,048,149 ' 52,790,232 60,766,938 258,214,536 255,412,067 292,663,294 289,206,825 j 323,400,090 j 317,000,622 | 383,153,745 j 344,711,041 j 373,392,314 | 428,712,529 475,114,802 447,401,030 | 7,909 7,972 8,013 8,059 8,113 8,165 8,212 8,294 8,428 8,510 8,584 8,612 9,268 9,319 9,425 9,450 9,475 9,710 9,761 10,206 10,549 10,318 10,219 10,409 Total. United States. 1917. Apr.15 May 15 June 15 July 15 Aug. 15 Sept. 15 Oct. 15 Nov. 15 Dec. 15 1918. Jan. 15 Feb. 15 Mar. 15 Apr.15 May 15 June 15 July 15 Aug. 15 Sept. 15 Oct. 15 Nov. 15 Dec. 14 1919. Jan. 15 Feb. 15 Mar.15 Apr. 15 May 15 June 15 July 15 Aug. 15 Sept. 15 Oct. 15 Nov.15 Dec. 15 98,584 90,944 109,083 138,817 129,378 132,688 149,902 139,678 149,460 164,761 177,569 182,347 632,118 599,951 640,346 686,512 665,641 696,457 737,007 731,680 761,680 824,862 915,794 975,095 77,282 126,051 114,563 137,228 157,820 118,248 95,986 83,659 77,201 93,437 107,551 88,071 807,984 816,946 863,992 962,557 952,839 947,393 982,895 955,017 988,341 1,083,060 1,200,914 1,245,513 224,904,918 198,935,424 168,567,377 197,456,121 176,737,129 196,594,573 218,737,336 194,733,618 208,529,081 235,072,612 236,521,957 251,531,229 162,371,765 156,360,759 171,714,589 167,142,262 163,067,746 191,330,944 194,300,102 176,612,134 202,812,209 223,417,562 246,055,511 254,594,746 37,753,800 63,221,002 46,746,505 49,329,926 45,278,441 48,316,599 49,869,067 57,868,769 51,935,604 45,272,641 37,355,291 36,506,264 425,030,483 418,517,185 387,028,471 413,928,309 385,083,316 436,242,116 462,906,505 429,214,521 463,276,894 503,762,815 519,932,759 542,632,239 8,702 8,724 8,735 8,758 8,786 8,825 8,848 8,894 8,920 8,955 9,007 9,050 10,246 10,483 10,718 11,060 11,288 11,782 12,071 12,578 12,962 13,852 14,861 15,851 197,562 1,028,259 I 78,160 1,303,981 270,143,956 264,521,801 29,612,240 564,277,997 9,089 16,986 1920. Jan. 15 t T O a § rn to 226 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. NUMBER OF BANKS ON PAR LIST, ALSO AVERAGE DAILY NUMBER A?W AMOUNT OF ITEMS HANDLED BYHR.BANKS, I9P-I9I9. 600 500 400 300 200 100 0 ^* f i 1I i i m mk H SJ ^! W /// m WA i i w i i i1 m i iii1 M w, AVERAGE PAILTAMOUNTOFITEMS HARPLED DURIttG EACHMONTH;W' MILUOHSOF DOLLARS =«* •y/4 V.M//A % WM 600 500 400 300 ZOO too 0 Items droMntbn3anJCsvn.JTJi.ScinJC(Xties. MSM Items <tra»H,orLjB<vdCs ou&sidefJZ. Sajvfc Ccties. WMMtznts dr<um<m,U.S. Treasurer. 1.4O0.OOO *-< 1200000 A 1000.000 600.000 400.000 m H 2O0.OQ0 O 400.CW % %m 1918 'Cu 1919 200-000 0 wY. c TOTAL NUMBER OF BANKS ON PAR LIST. Member Xante. JTonrJfcmber San/cs 191? 600.000 600000 i ShWiPLEP PUHll\(6 mA6 ELWLY DUMBER01at/7EM rtJ J8aru\:6 itit V. HM It em vmsdra* 'it in.2a. nJCtouts cde Sa emsd >m on, a^ r SCO-er AU 1.000.000 W\ 4 f % 800.000 1.200.000 ii N o . 55.—Number of member banks in district; also number of nonmember banks on par list in each Federal Reserve district, by months, for the calendar year 1919. Month. Jan. 15. Feb. 15. Mar. 15. Apr. 15. May 15 June 15 July 15 Aug. 15 Sept. 15 Oct. 15. Nov. 15 Dec. 15. Dec. 31. Philadelphia. New York. Boston. Cleveland. Richmond. Chicago. Atlanta. NonNonNonNon- Member NonNon- Member Non- Member Member member Member member Member member Member member member banks member member banks banks in banks banks in banks in banks on banks in banks in banks banks in banks banks in banks on on on on on on district. par list. district. par list. district. par list. district. par list. district. par list. district par list. district. par li^t. 424 244 424 244 424 244 425 243 426 243 429 241 429 241 429 241 430 242 430 242 429 244 431 245 432 245 721 722 722 725 729 734 735 740 744 | 746 751 751 753 322 321 320 322 319 318 319 317 319 322 321 319 322 666 666 666 665 666 667 669 670 670 674 676 677 678 314 322 ! i 350 356 361 406 406 409 409 411 | 414 | 415 814 819 821 819 822 825 826 832 837 841 841 842 843 738 778 786 790 797 833 911 956 1,014 1,025 1,063 1,079 1,085 565 568 568 569 570 572 574 572 573 575 582 584 585 353 312 329 295 299 339 349 395 418 443 450 466 485 424 422 422 423 424 424 424 428 431 431 429 426 426 290 289 295 310 301 329 333 351 349 348 347 348 355 1,338 1,338 1,340 1,342 1,346 1,351 1,356 1,364 1,363 1,363 1,366 1,374 1;374 2,414 2,500 2,599 2,804 2,925 3,080 3,067 3,192 3,184 3,211 3,522 3,700 3,896 I i—i O izi w to to to No. 55.—Number of member banks in district; also number of nonmember banks^ on par list in each Federal Reserve district, by^months, for the to 00 calendar year 1919—Continued. Minneapolis. St. Louis. Month. Jan. 15 Feb. 15 Mar. 15 Apr. 15. May 15 June 15 July 15 Aug. 15 Sept. 15 Oct. 15 Nov. 15 Dec. 15 Dec. 31. Member banks in district. 513 511 512 515 519 526 519 527 527 530 533 535 538 Nonmember banks on par list. 1,035 1,184 1,248 1,333 1,356 1,483 1,606 1,653 1,731 1,848 2,127 2,222 2,309 Member banks in district. 871 873 875 875 909 915 920 920 Nonmember banks on par list. 1,191 1,207 1,233 1,292 1,293 1,307 1,318 1,463 1,485 1,504 1,493 1,874 1,879 Kansas Citv. Member banks in district. 994 995 999 1,003 1,002 1,007 1,013 1,017 1,019 1,028 1,037 1,038 Dallas. San Francisco. Nonmember banks on par list. Member banks in district. Nonmember banks on par list. Member banks in district. Nonmember banks on par list. 2,171 2,161 2,167 2,170 2,248 2,279 2,290 2,371 2,502 2,828 3,038 3,138 3,346 728 734 736 739 741 744 746 748 748 748 757 756 756 247 245 244 240 240 301 321 320 392 750 905 1,105 1,220 648 655 656 662 665 669 676 678 681 689 700 713 723 927 920 915 911 911 911 910 913 917 922 940 941 942 Total. Member banks. 8,702 8,724 8,735 8,758 8,786 8,825 8,848 8,894 8,920 8,955 9,007 9,050 9.066 Nonmember banks on par list. 10,246 10,483 10,718 11,060 11,288 11,782 12,071 12,578 12,962 13,852 14,861 15,851 16,499 g o EXHIBIT G EARNINGS AND EXPENSES. 229 Exhibit G.—EARNINGS AND EXPENSES OF THE FEDERAL RESERVE BANKS FOR 1919. Total earnings of the Federal Keserve Banks for the calendar year 1919 were $102,380,583, compared with $67,584,417 for the calendar year 1918, while total current expenses were $20,341,798, compared with $12,137,438 for the earlier year. Current expenses for the year under review include, besides $15,439,194 of expense of operation proper, $3,016,823, the cost, including expressage, insurance, and other expenses incident to the issue and retirement of Federal Reserve notes; $872,326, taxes on Federal Reserve bank note circulation; $938,791, the cost of furniture and equipment purchased during the year, and $74,664, the cost of repairs and alterations of bank premises. As a result of increased borrowings by member banks and the higher discount rates adopted, the earnings of all the Federal Reserve Banks show considerably higher totals for the last three months than for the earlier months of the year. Total current expenses shown above are exclusive of the expenses of the fiscal agency departments. These expenses are treated separately, being reimbursable by the Government. During the past calendar year the Federal Reserve Banks acting as fiscal agents, largely in connection with the Victory loan and the several certificate issues, expended a total of $16,626,016. There was also due to the banks from the Treasury at the beginning of the year a total of $9,573,832, expended by the banks during the year 1918. Reimbursements received during the year from the Government amounted to $22,612,681, leaving thus a reimbursable balance at the end of 1919 of $3,587,167. Current net earnings of the banks—i. e., the excess of earnings over current expenses—totaled $82,038,785, compared with $55,446,979 for 1918. Calculated on an average aggregate paid-in capital for the year of $83,513,000 the net earnings for 1919 constitute 98.2 per cent, as compared with 72.6 per cent on the average paid-in capital in 1918. To the current net earnings above shown should be added $219,575, the amount by which the reserve set aside in previous years to take care of depreciation of United States bonds owned has been reduced, and $40,857 representing largely amounts carried directly to profit and loss during the past year. This gives total gross profits of $82,299,217. Deductions from this total, $3,931,713, comprise the following items: Depreciation allowances of $2,649,819 on bank premises (especially large in New York City and Chicago); additional reserve against depreciation of United States bonds, $34,156; a special reserve of $525,741 set aside by the New York bank to cover losses and take care of future contingencies; an amount of $493,928, assessed against the banks for the support of the Federal Reserve Board during the first six months of 1920, and miscellaneous deductions of $228,069. This leaves net earnings available for dividends, surplus, and franchise taxes of $78,367,504. Dividends at the rate of 6 per cent paid during the year by all the Federal Reserve Banks amounted to $5,011,832. Under section 7 of the original act the banks had to carry to surplus one-half of their net earnings up to 40 per cent of their paid-in 230 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. capital and had to pay the other half to the Government as a franchise tax. In accordance with this provision the banks at the close of 1918 carried to surplus $21,605,901, and under instructions from the Reserve Board, concurred in by the Treasury, set aside the balance of their net earnings, $26,728,440, as a special reserve for payment of the franchise tax. On March 3, 1919, an amendment to section 7 was enacted whereby all net earnings, after deduction of 6 per cent dividends, were to be paid into a surplus fund until this fund should have reached 100 per cent of the total subscribed capital, and that thereafter 10 per cent of such net earnings were to be carried to surplus, while the remainder was to be paid as a franchise tax to the Government. This amendment was made applicable to the net earnings for the calendar year 1918, and accordingly the Federal Reserve Banks transferred to surplus account the amount of $26,728,440 reserved at the close of the year for franchise tax. At the end of 1919 net earnings, after payment of dividends, amounted to $73,355,672, and of this amount $70,651,778 was carried to surplus, while the balance was paid to the Government as franchise tax by the New York bank, whose surplus is in excess of 100 per cent of its subscribed capital. For the other banks the ratios of surplus to subscribed capital stand as follows: Per cent. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago 58. 100. 55. 47. 66. 68. 57. 8 7 8 7 3 5 9 Per cent. St. Louis Minneapolis Kansas City Dallas San Francisco 45. 8 58. 0 76. 1 44. 3 65. 3 System 68. 7 Of the total earnings of the banks, about 78.9 per cent, as against 71.5 per cent in 1918, came from discounts, largely war paper; bills purchased in open market contributed about 13.7 per cent of the total earnings, as against 17.7 per cent in 1918; United States securities, chiefly Treasury certificates, 5.6 per cent, as against 5.7 per cent the year before; transfer operations yielded about 0.8 per cent of the annual earnings, compared with 1.5 per cent in 1918, while the balance of the earnings represent penalties including interest on deficient reserves, collection charges, profits on sales of foreign coin, and sundry smaller profits. Of the total expenses of operation of the banks proper, exclusive of their fiscal agency departments, $7,103,547, or about 46 per cent, as against 42 per cent the }rear before, went as compensation to the clerical staff, and $1,418,144, or about 9 per cent, as against 11.5 per cent in 1918, as salaries to bank officers. Compensation of special officers and watchmen, also of extra help, overtime pay, and supper money account for $1,375,311, or about 9 per cent of the total expenses of operation; $902,547, or 6 per cent, as against 10 per cent the year before, went for postage and expressage, and $829,178, or about 5.5 per cent, for printing and stationery. Contributions of the banks for the support of the Federal Reserve Board totaled $594,818, as against $382,641 the year before, and constitute about 4 per cent of the banks' total operating expenses, compared with 4.5 per cent for 1918. EXHIBIT G—EARNINGS AND EXPENSES. 231 Rent paid by the banks totaled $613,988, compared with $369,122 in 1918, the New York and Chicago banks reporting the largest increases under this head. All the banks have invested in bank premises, but most of them for the present find it necessary to transact the bulk of their business in rented quarters. Total book value of investments in bank premises at the close of the year, after allowing $2,649,819 for depreciation, stood at $10,156,3*18, compared with $8,081,841 at the beginning of the year. to CO to Earnings and expenses of each Federal Reserve Bank for the calendar year 1919. EARNINGS. Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. St. Louis. Minneapolis. Kansas City. FranDallas. San cisco. Total. 16,003,252 $29,935,911 $7,987,864 $5,341,785 $4,099,953 $3, 735,033 $8,915, 827 $22,918,462 $1,829,46113,888,839 $2:,443,80( £3,667,951 $80,768,144 Discounted bills ; 1,077,691 3,326,839 67,019 1,882,985 351,418 367,338 2,141,78y 564,495 882,564 Purchased bills 340,875 113,39' 2,870,368 13,986,778 United. States securities 369,457 1,888,497 495,768 450,308 185,293 228,958 736,241 320,412 213,501| 405,400 229,080 238,385 5,761,300 Municipal warrants 85 85 Transfers—net earnings 830,309 45,607 8,356 10,570 143,495 51,461 198,749 193,661 178,410 Deficient reserve penalties (including interest) 727,844 27, 836 36,405 25,673 44,569 26,3821 106,705 66,x 442 125,192 81,984 52,373 68,313 65,970 Profits realized on United States securities 2,355 5 2,350 Sundrv profits 303,768 140 3,672 19,347 144,760 323 7,913 33,556 11,352 18,166 13,468 30,157 20,914 I Total earnings. 7,497,583 35,332,412 8,609,880 ',800,829 4,775,324 ,416,001 12,012,078 3,884,478 3,007,041 4,961,482 3,062,251 7,021,224 102,380,583 CURRENT EXPENSES. Expense of operation: Assessments, account expenses Federal Reserve Board Federal advisory council (fees and traveling expenses) Governors' conferences (including traveling expenses) Federal Reserve agents' conferences (including traveling expenses) SalariesBank officers Clerical staff Special officers and watchmen. All other Directors' fees Per diem allowance Traveling expenses Officers' and clerks' traveling expenses Legal fees Rent Taxes and fire insurance Telephone Telegraph $45,619 $181,875 $49,059 $58,676 $29,535 $22,391 $80,170 $24,981 $20, 209 $28,151 $20,362 $33,790 $594,818 500 1,150 381 1,035 736 470 816 1,150 \}274 300 992 2,594 11,398 2441 316 2io| 499 254 575 523 553 83 498 788 2,498 7,041 109 139 255 43 133 84 229 341 361 109 1,105 2,908 96,929 577,104 44,688 59,228 4,059 650 1,278 99, 815 494,639 17,444 71,687 2,600 930 1,989 74,796 326,746 7,497 16,283 3,400 820 1,999 116,952 289, 855 10,037 12,934 3,013 4,085 3,025 158,083 881,142 64, 752 80,785 4,915 590 1,249 95,040 400,860 13,408 20,289 5,970 2,290 3,326 61, 014 208,171 8,726 3,530 3,870 980 1,9651 91,604 453,258 14,423 11,698 6,735 6,438 5,102 87,212 390,993 6,363 11,883 2,220 740 1,487 136,807 491,627 13,757 19,005 5,879 1.344 1,418,144 7,103,547 274,581 1,100,730 70,556 20,007 27,466 5,421 1,941 1, 500 15,775 14,423 7, 578 16,304 3,000 53,525 533 6,445 15,084 8,689 570 7,941 11,452 2,447 10,032 9,113 4,495 14,018 8,268 2,988 24,326 28,147 5,500 97, 477 253 9,793 24,216 22,933 61 36,020 701 3,548 15,609 5,531 3,380 14, 295 851 2, 2W3 2, 752 13,959 1,825 31,820 646 3,734 12,233 14,578 2,400 5,526 1,746 3,189 21.772 16,729 3,199 3,256 5,672 4,912 27,929 179,127 41,438 613,988 49,451 98,047 202,724 105,097 294,795 606,345 1,982,807 12,278 61,208 12,111 781, 297 24,345 3,550 1,1401 2,661 3,385 8,708 3,817 58 367 3,554 11,855 7,958 29 015 11, 250 290, 243 32 490 33, 235 Postage Expressage Insurance and premiums on fidelity bonds Light, heat, and power Printing and stationery Repairs and alterations Cost of currency shipments to and from member and nonmember banks Allother Total expense of operation Cost of Federal Reserve currency (including expressage, insurance, etc.).. Miscellaneous charges, account note issues Taxes on Federal Reserve bank note circulation • Furniture and equipment Bank premises Total current expenses. Current net earnings, year 1919 Per cent of average paid-in capital 34,781 78,769 2,468 39,883 25,556 V, 193 4,538 778,758 123,789 8,692 25,228 6,352 20,806 4,546 49, 782 11,508 13,308 3,365 41,009 13,194 20,636 5,852 88,080 18,620 306,955 73,960 829,178 297,930 47, 789 18,673 7,906 11,255 27,075 40,881 25,519 41,348 46,474 46,197 546,266 666, 747 775,542 1,047,693 15,439,194 78,621 3,416 116,072 54,395 60,780 7,804 70,916 2,028 48,262 2,809 49, 906 8,831 98,723 54,853 4,586 19,104 16, 771 41,478 16, 722 98,817 2,859 236,653 130,718 45,848 17,616 78,477 31,581 33,088 3,937 46,952 9,560 9,718 5,093 39,083 11,393 8,881 3,889 46,294 2,619 8,736 8,087 101,4;66 40,349 18,961 1,945 34,676 5,314 78,824 82,115 103,905 142,251 35,354 102,559 33,790 31,552 41,504 21,008 31,982 44,003 66,144 84,905 4,613,220 1,260,243 1,076,278 682,110 723,083 1,853,298 833,765 434,378 918, 620 285,917 642,430 209,419 168, 867 119,347 148, 735 400,418 188,617 56, 273 131,339 85, 719 187,486 2,624,567 31, 774 105,167 45,411 16,981 28,582 11,536 62,558 20,313 17,002 16,493 8,028 28,411 392,256 89,422 43,748 169,514 204,014 98,132 100,868 61,112 80,491 53,414 32,468 49,420 41,561 46,844 458 133,970 98,080 58,300 73,798 24,912 23,926 65.327 54^ 290 42,829 70,718 35,400 119,671 13,094 872,326 938,791 74,664 5,734,345 1,775,185 1, 396,031 911,927 972,217 982,836j 1,431,755 20,341,798 9,463,754 2,709,685 2,450,550 3, 775,413 2,079,415 5,589,469 99.0 63.5 113.3 69.3 81.0 81.6 82,038,785 98.2 1,220,964 1,671,825 5,825,758 29,598,067 6,834,695 6,404,798 3,863,397 3,443,784 84.3 91.7 104. 8 137.5 89.1 69.0 2,548,324 1,174,793 556,491 1,186,069 IISCAL AGENCY DEPARTMENT EXPENSES OF EACH FEDERAL RESERVE BANK, AMOUNTS REIMBURSED BY THE TREASURY DEPARTMENT' AND BALANCES REIMBURSABLE AT THE END OF THE CALENDAR YEAR 1919. Boston. $1,166,763 Total disbursements during 1919 558,932 Amounts reimbursable Jan. 1,1919 1,725,695 Total Reimbursements received during 1919.. 1,539,918 Balance reimbursable Jan. 1,1920 185,777 New York. Philadelphia. Cleveland. $4,963,642 $1,005,050 $1,494,163 3,049,530 758,096 766,785 8,013,172 1,763,146 2,260,948 7,035,337 1,645,329 1,930,562 977,835 117,817 330,386 Richmond. $577,099 226,076 Atlanta. $712,656 $2,711,206 458,650 1,261,885 803,175 1,171,306 550,352 1,049,519 252,823 Chicago. 121,787 Minneapolis. Kansas City. Dallas. $921,819 450,342 $606,534 150,212 $752,044 451,220 $553,058 SI,161,982 $16,626,016 508,669 9,573,832 933,435 3,973,091 1,372,161 3,440,610 1,265,704 532,481 San Francisco. St. Louis. 106,457 756,746 1,203,264 1,061,727 2,095,417 848,133 1,883,668 796,088 627,461 129,285 407,176 213,594 211,749 Total. 26,199,848 22,612,681 T Ul X Ul Ul 3,587,167 to CO CO Earnings and expenses of each Federal Reserve Bank for the calendar year to 1919—Continued. P R O F I T AND LOSS ACCOUNT OF EACH FEDERAL RESERVE BANK FOR THE CALENDAR YEAR 1919. Boston. New York. Philadelphia. CleTiBland. Richmond. Atlanta. • Chicago. St. Louis. Minneapolis. Kansas City. FranDallas. San cisco. Total. ,021, $102,!, 380,583 ;, 609,880 $7',800,829 $4,775,324 4,775, $4;, 416,001 $12,012,078 $3,1,884,478 $3,007,041 $4,961,482 $3,1,062,251 $7,021,224 Earnings $7,497, 583 $35,,332,412 $8, 1,671,825 5,734,345 1,775,185 1,396,031 911,927 972,2171 2,548,324 1,174,793 556,491 1,186,069 982,836 1,431,755 20,341,798 Current expenses. Current net earnings for year 5,825,758 29,598,067 6,834,695 6,464,798 3,863,397 3,443,784 9,463,754 2,709,685 2,450,550 3,775,413 2,079,415 5,589,469 82,038,785 Credits to current net earnings on account of— Amounts previously reserved for depreciation on United States 27 219,575 13,096 bonds 58,606 147,846 40,8.'>7 3,584 470 967 All other 940 103 3,697 31,096 Total Deductions from current net earnings on account of— Bank premises Reserve for depreciation United States bonds Assessment account expenses Federal Reserve Board, Jan.-June, 1920 Special reserves All other Total deductions. Net earnings available for dividends, surplus, and franchise tax, Dec. 31, 1919 Dividends paid Transferred to surplus fund Franchise tax paid United States Government 5,825,758 29,629,163 6,838,392 6,404,798i 3,922,943 3,460,464 9,463,754 2,709,685 2,450,550 3,923,362 2,079,885 5,590,463 82,299,217 ===== 168,625 2,649,819 I W 900,032 254,684 29,112 5,044 20,000 51,478 820,000 335,000 100,000 34,156 16,167 33,306 21,854 1,172 493,928 525,741 228,069 38,021 203,103 3,931,713 5,777,381 27,959,619 6,659,169 6,093,785 3,877,266 3,382,397 8,576,204 2,355,154 2,333,943 3,923,362 2,041,864 5,387,360 78,367,504 414,447i 1,291,047 462,380 556,785 252,872 197,397 5,362,934| 23,964,678 6,196,789 5,537,000 3,624,394 3,185,000 196,335 296,161 228,755 234,660 180,186 700,807 7,875,397 2,120,494 2,153,757 3,694,607 1,845,529 5,091,199 5,011,832 70,651,778 168,612 525,741 75,089 41,828 46,555 25,531 20,302 66,764 19,520 9,711 108,283 4,730 146 6,287 786 11 48,377 1,669,544 179,223 311,013 45,677 78,067 887,550 354,531 38,666 j 2,703,894 16,607 116,607 2,703,894 W O Earnings and current expenses of each Federal Reserve Bank, by months, for the calendar year 1919. EARNINGS. Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. January... February.. March April May June July August September. October... November. December. $525,055 $2,806,299 506,592 2,576,420 567,475 2,843,565 587,362 2,648,937 619,839 2,908,549 604,188 2,586,788 631,738 3,064,518 583,143 2,896,848 629,460 2,623,409 655,413 3,155,511 745,500 3,400,023 841,818 3,821,545 $385,481 354,977 394,719 396,212 398,218 377,693 380,629 366,955 383,302 416,300 420,958 499 880 $349,756 288,668 324,003 318,467 338,776 334,959 344,191 352,294 383,043 446,108 451,996 483,740 $823,055 693,832 865,435 853,765 934,037 958,234 1,022,300 988,782 931,560 1,076,905 1,290,014 1,574,159 Total 7,497,583 35,332,412 7,800,829 4,775,324 4,416,001 $658,171 616,446 690,973 674,815 706,261 702,695 702,684 718,959 707,226 756,681 793,629 881,340 $579,072 542,338 597,250 570,417 590,570 576,734 619,051 646,465 621,130 700,893 845,449 911,460 Kansas St. Louis. MinneapoCity. lis. $282,051 226,019 327,022 330,224 288,564 285,962 284,508 311,286 343,458 368,794 385,860 450,730 $204,303 193,851 224,985 259,045 240,428 229,249 239,952 216,553 241,666 300,369 299,549 357,091 $382,520 340,310 413,774 413,795 400,104 395,505 391,880 351,139 436,133 458,344 456,273 521,705 12,012,078 3,884,478 3,007,041 4,961,482 Dallas. $265,073 227,487 246,157 232,809 234,943 233,634 255,115 242,681 256,967 295,663 259,549 312,173 San Francisco. Total. $509,295 $7,770,131 466,167 7,033,107 577,361 8,072,719 508,416 7,794,264 566,630 8,226,919 507,603 7,793,244 575,207 8,511,773 588,572 8,263,677 607,390 8,164,744 663,666 9,294,647 707,021 10 055,821 743,896 11,399,537 $105,759 92,402 177,414 125,801 97,283 152,789 105,782 139,303 124,664 106,449 106,062 338,117 $345,502 306,935 411,008 354,288 531,778 654,433 388,537 374,970 371,320 361,698 536,922 1,096,954 $79,011 94,606 117,851 91,920 84,591 348,017 121,370 108,115 102,211 101,998 102,584 422,911 $93,863 115,527 119,519 83,108 90,258 114,565 98,212 88,644 84,975 93,261 93,366 320,733 $50,214 70,201 77,650 67,434 63,803 71,964 47,665 48,388 63,915 63,598 59,945 227,150 $57,207 75,445 74,446 76,463 69,099 64,140 56,868 79,218 61,986 67,561 78,867 210,917 $136,033 135,033 181,500 206,763 237,633 229,903 165,619 207,021 181,992 284,410 171,480 410,937 Total 1,671,825 5,734,345 1,775,185 1,396,031 911,927 972,217 2,548,324 w w o 3,062,251 7,021,224 102,380,583 CURRENT EXPENSES. January... February.. March April May June July August September. October... November. December., X O GO $73,798 63,199 97,658 75,704 68,598 150,356 73,337 73,731 84,297 76,931 82,425 254,759 $33,423 35,580 32,358 32,402 33,708 90,543 37,577 39,690 41,007 40,590 44,315 95,298 $87, 111 63,002 116,995 102,430 74,957 83,505 81,115 82,284 81,547 90,376 99,277 223,470 1,174,793 556,491 1,186,069 $62,652 46,422 80,096 54,775 65,456 75,598 63,574 98,181 76,558 81,354 87,848 190,322 $77,595 $1,202,168 75,109 1 173,461 89,342 1,575,837 84,950 1,356,038 78,494 1,495,658 221,873 2,257,686 78,314 1,317,970 72,185 1,411,730 82,513 1,356,985 85,638 1,453,864 104,499 1,567,590 381,243 4,172,811 1,431,755 20,341,798 1 CO 236 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. Exhibit H.—RECEIPTS AND DISBURSEMENTS OF THE FEDERAL RESERVE BOARD. There is here given a statement of receipts and expenditures of the Federal Reserve Board in 1919. The total expenses of the Board for the year are shown on the detailed statement of commitments to have been $558,560.61. RECEIPTS. Assessments, 1919 Bulletin, subscriptions to Reimbursements Miscellaneous $594, 668. 63 3, 360.94 28, 397. 26 5, 836. 85 Total $632, 263. 68 Deficiency, Jan. 1, 1919 6, 202. 21 Total available 626, 061.47 DISBURSEMENTS. By fiscal agent Auditor's settlements Total disbursements Balance ''Expenses trading-with-the-enemy act, Federal Reserve Board," transferred to "Executive expenses, trading-with-the-enemy act'' 524, 332.10 61,015. 59 585, 347. 69 4. 62 585, 352. 31 Balance Dec. 31, 1919, with Treasurer of the United States to credit of— Federal Reserve Board Fiscal agent 38, 926. 66 1, 782.50 40, 709.16 626,061.47 GENERAL STATEMENT. Total available Reimbursable expenditures Balance to credit reimbursable account 626, 061. 47 $24, 763. 29 779.14 Commitments for general expenses, 1919 Commitments, 1918, paid in 1919 Balance, ''Expenses trading-with-the-enemy act, Federal Reserve Board," transferred to "Executive expenses, trading-with-the-enemy act'' Unincumbered balance, Jan. 1, 1920 Unpaid commitments, Dec. 31, 1919 Balance to credit reimbursable account Unexpended balance 25,542.43 558, 560. 61 25, 694. 66 4. 62 600,519. 04 584,259.89 16, 259.15 23,670.87 779.14 40, 709.16 Detailed statement of commitments. January. February. $6,229.14 3,764.99 1.563.32 5,284.70 3,694.11 '837.82 1,360.80 $6,315.84 3,790.00 1,983.00 5,091.66 3,902.35 865.84 1,434.17 March. April. May. June. July. August. Septem- October. ber. Novem- j December. i ber. Total. PERSONAL SERVICES. Board members and their staff Secretary's office Counsel's office Division of operations and examination Division of reports and statistics Division of gold settlement Division of analysis and research Division of architecture Division of Federal Reserve issue and redemption Messengers « Charwomen Employees detailed t o National bank redemption agency, office of Treasurer of the United States Redemption division, office of Comptroller of the Currency Total. $6,433.52 $6, 439.14 3,594.01 3.59632 2, 060.85 2^089.98 5,120.86 5,224.98 4,149.62 4,290.79 865.84 865 82 1,520.86 1,379.82 780.56 $6,391.50 3,595 00 2, 090.00 5,224.99 4,296 51 865.84 1,337.50 1,080-55 2, 526.99 2, 697.50 2,839.85 2,883.83 3,128.49 729.99 671.01 696.01 735-00 750.65 77.13 78.00 78.00 78.00 78.00 $6,179.19 $6,274.15 $6,397.91 $6,390.44 $6,390.40 $7,183.96 '$7,613.78 3,867.83 4,174.98 4,457.50 3,631.68 3,961.38 4,615 00 4,615 02 2,090.01 2,520.52 2,631.67 2, 631.69 2,631-64 2,566 67 2,501.69 5,225 03 5,807-20 6,018.33 6,201.70 6,301 63 6,314.99 6,501.71 4,596 05 4,765 99 5, 347.51 5.113.83 5,06100 5, 340 03 5, 485.07 $78,238.97 47,663.71 27,361.04 68,317.78 56,042 86 941.67 10,083.33 858.32 858.34 1.714.70 1,891.09 2.078.35 17,880.76 888.88 '888.90 7,150.01 644.84 1,422 84 555.56 762.32 1,38394 555.55 858.34 1,059.17 622.23 '858.34 1,297.52 4,676.89 735 67 78.00 4,951.49 853.32 96.00 4,931.02 843.32 96.00 4,837.84 5, 432.35 3,057.66 i 5,99335 50,957.26 858.34 888.34 9, 440.81 833 34 845.82 96.00 81.05 1,028.18 96.00 96 00 384.18 2,984.08 5,748.95 6,159.25 15,276.46 1,389.55 2,747.39 4,136.94 26,068.99 26,829.37 27,398.41 28,379.89 28,784.39 30,071.91 32,145.46 33,263 00 133,165.45 37,166 21 43,809.46 46,495.57 393,578.11 NONPERSONAL SERVICES. Transportation and subsistence: Board members and their staff 62.40 189 66 148. 22 12044 552.11 168.9 201.50 5509 1.60 141.26 392.90 2,162.69 128.52 267.82 Secretary's office 5.50 6.08 93.00 118.77 15.56 1641 I 11.25 1.25 Division of operations and examination 1,254.39 2,852 02 3,307.95 3, 230.86 2,801.41 3,150.46 2,809.62 1,710.37 I 2,624.98 3,214.43 1,818.65 1,910.51 30,685.65 100.67 Division of reports and statistics 70.36 30.31 708.70 Division of analysis and research 29.62 56.90 32.54 55 77 22 03 115.00 65.30 148.62 75 58 35 51 48.57 23.26 24.34 60.71 Counsel's office I 21.56 14.81 12.50 71.25 Messengers j "5*66 "o"6n 5 00 18.75 5 00 i '"h'.oo 5 00 5 00 5.66 Communication service: i 229.66 2,477.55 167-41 Telephone j 209.60 189.34 160 92 210,54 232.22 228.97 194.35 223 57 226.83 204.14 142 06 265 00 3,013.86 Telegraph 244.45 215 06 279. 25 265.14 301.22 276.93 239.97 255 54 270.90 258.34 17.50 201.50 Postage 19.50 14.00 15 00 17 00 34.00 15 50 43 50 600 19.50 Printing, binding, etc 7,447.01 2,550 95 3, 239 57 2,312 35 2,185.30 1,85816 2,984.52 2,371.23 2.540.18 2. 515.65 3,397.77 3,387.47 36, 790.16 242.04 Contract repairs 1.75 55.20 3.60 8.00 19.30 17 10 I 14.10 3 60 375 3.12 85 64 ' 26.88 422.40 Electricity (light and power) 35.20 35 20 35.20 3520 35.20 35 20 35 20 35.20 35.20 35.20 35.20 35.20 216.30 Steam (heat) 30.90 30.90 30.90 30.90 30.90 30.90 30.90 Other nonpersonal service 429.81 397.27 4,229.36 232.56 416.35 221.00 246.36 355.01 364.22 405.95 I 295.02 581.48 284.33 Detailed statement of commitments—Continued. to 00 February. May. June. July. August. $312.55 36.00 216.06 $321.76 663.81 $803.80 9.57 191.14 $977.95 97.50 61.37 $413.11 18.00 38.24 $347.82 11.50 229.45 $829.30 29.50 73.57 372.35 1 640.36 26 41 3.47 692.42 692.42 682.57 11-12 692.42 681.00 53.00 739.56 666.38 18.90 814.56 923.11 2.98 814.56 930.63 55.87 814.56 6,555.34 5,778.48 3,485.58 953.07 21,371.24 17,638.92 17,524.21 15,887.94 16,251.24 14,617.08 13,012.85 8,111.59 March. Supplies: Stationery $492.23 $300.85 $569.54 23.35 fc 36.70 12.75 Periodicals 109.70 247.84 96.15 Other Equipment: 408.43 Furniture and office.. 804.79 223.30 62.50 3.37 40.75 Books . 564.03 593.76 571.95 Rent .. .. . Division of foreign exchange (including 10,020.53 9,381.43 8,198.98 salaries) Total Grand total Septem- October. November. ber. April. January. 7,589.76 142.09 $427.49 72.70 130.17 December. Total. $453.97 $6,250.37 719.72 372.15 215.65 2,273.15 1,714.87 1,239.08 82.27 2, 705.47 825.56 814.56 10,286.87 3,066.11 8,630.36 52,105.26 8,681.33 9,658.38 9,681.22 12,546.50 164,982.50 n . . . 47, 440.23 91,909.52 44,922.62 44,267.83 45,035.63 44,688.99 45,158.31 41,374.59 41,846.78 46,824.59 53, 490.68 59,042.07 558,560.61 H W o > 239 EXHIBIT 1—STATE BANK MEMBERSHIP. Exhibit I.—STATE BANKS AJNli TKUST COMPANIES ADMITTED. The following is a list of State banks and trust companies members of the Federal Reserve system, showing capital, surplus, and total resources as compiled from figures available on December 31, 1919. One thousand one hundred and eighty-one State institutions are now members of the system, having a total capital of $421,653,766, total surplus of $447,553,603, and total resources of $9,608,710,574. Surplus. 1 Total resources. l DISTRICT NO. I. CONNECTICUT. New Britain—New Britain Trust Co New Haven—Union & New Haven Trust Co. South Manchester—Manchester Trust Co Waterbury—Colonial Trust Co Banffor—Merrill Trust Co Portland—Fidelity Trust Co.. $400,000 650,000 100,000 400,000 $200,000 650,000 50,000 500,000 $4,954,861 4,845,388 2,057,737 8,569,696 300,000 400,000 400,000 400,000 7,401,911 14,501,467 MASSACHUSETTS. Arlington—Menotomy Trust Co BostonAmerican Trust Co Beacon Trust Co Commonwealth Trust Co International Trust Co Liberty Trust Co Market 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 Fitchburg—Fitchburg Bank & Trust Co Gloucester—Gloucester Safe Deposit & Trust Co Greenfield—Franklin County Trust Co Holyoke—Hadley Falls Trust Co Lawrence—Merchants Trust Co Lynn—Security Trust Co New Bedford—New Bedford Safe Deposit & Trust Co. Newton—Newton Trust Co Norwood—Norwood Trust Co Salem—Naumkeag Trust Co Waltham—Waltham Trust Co Winchester—Winchester Trust Co Worcester—Worcester Bank & Trust Co 25,000 1,634,136 2,000,000 1,200,000 500,000 1,500,000 300,000 100,000 400,000 2,000,000 9,000,000 2,500,000 1,000,000 29,309,782 22,468,280 33,458,171 32,342,230 7,125,776 2,568,339 9,250,740 28,727,006 164,351,082 41,439,721 18,906,488 200,000 200,000 500,000 200,000 200,000 500,000 300,000 200,000 200,000 400,000 200,000 250,000 200,000 100,000 .,250,000 200,000 100,000 350,000 200,000 100,000 250,000 150,000 200,000 300,000 400,000 8,000 150,000 100,000 25,000 500,000 4,345,827 5,206,079 5,196,119 4,842,245 2,905,766 6,110,352 7,248,243 8,416,446 5,760,592 7,030,205 2,887,604 5,348,903 4,806,562 983,962 30,254,870 3,000,000 3,000,000 1,000,000 4,000,000 3,500,000 500.000 80,817,308 61,602,439 14,643,505 30,475,000 33,758,000 692,319,838 1,000,000 200,000 300,000 131,000 10,060,300 3,404,025 125,000 L, 000,000 600,000 L 000,000 L, 500,000 200,000 400,000 500,000 [,000,000 •,000,000 1,000,000 L, 000,000 RHODE ISLAND. ProvidenceIndustrial Trust Co Rhode Island Hospital Trust Co Union Trust Co Total. DISTRICT NO. 2. CONNECTICUT. Bridgeport—Bridgeport Trust Co , South Norwalk—South Nor walk Trust Co. NEW JERSEY. 100,000 Asbury Park—Seacoast Trust Co 75,000 2,213,172 200,000 150.000 Bayonne—Bayonne Trust Co 5,248,516 200,000 100,000 Bloomfield—Bloomfield Trust Co 4,286,866 75,000 25,000 Boonton—Farmers & Merchants Bank. 639,839 100,000 20,000 Cranford—Cranford Trust Co 1,801,598 i A mounts shown represent capital, surplus, and total resources as of Nov. 17,1919, except in the case of banks admitted since that date, for which figures as of the date of admission were used. 240 ANNUAL. REPORT OF THE FEDERAL RESERVE BOARD. Total resources. DISTRICT NO. 2—Continued. NEW JERSEY—continued. East Orange — Savings Investment & Trust Co East Orange Bank Elizabeth—Elizabethport Banking Co Franklin—Sussex County Trust Co Glen Ridge—Glen Ridge Trust Co Hackensack—Peoples Trust & Guaranty Co Hoboken—Jefferson Trust Co Jersey C i t y Commercial Trust Co. of New Jersey The New Jersey Title Guarantee &'Trust Co Montclair— Bank of Montclair Montclair Trust Co Morristown—Morristown Trust Co Newark— Federal Trust Co Ironbound Trust Co Nutley—Bank of Nutley Orange—Trust Co. of Orange Passaic— Passaic Trust & Safe Deposit Co Peoples Bank & Trust Co • Paterson—Hamilton Trust Co Plainfield—Plainfield Trust Co Rahway—Rahway Trust Co 5 Ridgefield Park—Ridgefield J ark Trust Co Rutherford—Rutherford Trust Co Westfield— Peoples Bank & Trust Co Westfield Trust Co West Hoboken—Hudson Trust Co. of West Hoboken.. $300,000 25,000 50,000 20,000 20,000 300,000 50,000 $8,385,242 1,902,757 4,739,350 402,030 1,193,377 6,893,777 4,764,214 1,500,000 1,000,000 34,764,301 17,333,216 80,000 100,000 300,000 3,047,186 5,100,725 9,443,058 500,000 100,000 35,000 25,000 12,350,793 9,048,197 1,538,980 1,162,945 100,000 300,000 400,000 300,000 25,000 25,000 25,000 8,945,909 6,815,993 12,351,991 9,010,872 1,087,750 1,579,494 1,487,275 80,000 20,000 1,000,000 2,346,002 2,768,934 26,516,497 75,000 50,000 100,000 100,000 100,000 1,374,760 716,225 3,004,377 1,454,449 5,675,099 2,066,861 L, 500,000 1,000,000 1,000)000 L, 000.000 I 500,000 L, 600,000 j 800,000 L, 200,000 j 1,200,000 49,419,480 34,543,434 44,559,342 43,857,404 37,824,472 1,000.000 500,000 1,250,000 1,000,000 1,000,000 600,000 25,000 8,000 50,000 47,969,225 16,602,852 28,472,624 22,066,511 37,048,764 17,946,195 661,243 170,6C6 1,527,112 25,000 37,500 400,000 10,000 25,000 225.000 ioo;ooo 50,000 80,000 100,000 25,000 25,000 60,000 350,000 50,000 75,000 11,250,000 6,000,000 250,000 15,000,000 500,000 6,000,000 700,000 600,000 1,498,420 1,283,367 8,679,382 60,000 1,037,760 4,135,279 1,309,260 1,161,633 1,294,964 3,512,582 4,194,344 336,550 1,626,614 5,374,090 796,138 2,482,330 $498,200 150,000 250.000! 100,000 100,000 500,000 200,000 1,000,000 1,000,000 100,000 i 300,000 I 600,000 ! 1,000,000 200,000 100,000 100,000 200,000 200,000 500,000 300,000 100,000 100,000 100,000 100,000 100,000 1,000,000 I ; j I j ! I I NEW YORK. Adams—Citizens Trust Co Amityville—Bank of Amityville Amsterdam—Montgomery County Trust Co Batavia—The Bank of Gehesee Binghamton— Peoples Trust Co Brooklyn— Brooklyn Trust Co Franklin Trust Co Manufacturers Trust Co Mechanics Bank Peoples Trust Co BuffaloBank of Buffalo Buffalo Trust Co Citizens Commercial Trust Co Fidelity Trust Co Liberty Bank of Buffalo Peoples Bank of Buffalo Canisteo—First State Bank Cape Vincent—Citi/ens Bank of Cape Vincent Chatham—State Bank of Chatham East AuroraBank of East Aurora Erie Count.: Trust Co Elmira—Chennme Canal Trust Co Endicott—State Bank of Endicott Floral Park — i loral Park Bank Geneva—Geneva Trust Co Gloversville—Trust Co. of Fulton County Hammondsport—Bank of Hammond sport Hicksville—Bank of Ficksville Ithaca—Ithaca Trust Co Johnson City—Workers Trust Co Katonah—Northern Westchester Bank Kingston—Kingston Trust Co Little Falls—Herkimer County Trust Co Millbrook—Bank of Millbrook". Mineola—Nassau County Trust Co New York— Bankers Trust Co Bank of America Bank of United States Central Union Trust Co Columbia Bank Columbia Trust Co Commercial Exchange Bank Commonwealth Bank of the City of New York. 140,000 25,000 200,000 100,000 500,000 i 1 ! i J, 500,000 j 500.000 I L,250;000 L, 000,000 L500,000 I 600,000 I 50,000 ' 50.000 50,000 100,000 100,000 600,000 50,000 25,000 250,000 200,000 50,000 25,000 200,000 100,000 50,000 150,000 350,000 50,000 100,000 000,000 500,000 000,000 500,000 000,000 000,000 200,000 400,000 380,486,721 92,023,675 28,964,148 256, 750, 201 27,339,047 118,968,522 11,065,899 12,125,436 241 EXHIBIT I—STATE BANK MEMBERSHIP. Total DISTRICT NO. 2—Continued. NEW YORK—continued. New York—Continued. Continental Bank Corn Exchange Bank Equitable Trust Co Fanners Loan & Trust Co Fidelity Trust Co Fifth Avenue Bank Fulton Trust Co w Guaranty Trust Co Irving Trust Co Lincoln Trust Co Manhattan Co Mercantile Trust Co Metropolitan Bank Metropolitan Trust Co. of the Citv of New York Mutual Bank New Netherland Bank New York Trust Co Pacific Bank United States Mortgage & Trust Co United States Trust Co. of New York W. R. Grace & Co.'s Bank. Yorkville Bank of New York City Niagara Falls—Power City Bank Nya'ck—Rockland County Trust Co Ogdensburg—St. Lawrence Trust Co Olean—Olean Trust Co Oneida—Madison County Trust & Deposit Co Orchard Park—Bank of Orchard Park Oyster Bay—Oyster Bay Bank Perry—Citizens" Bank. .* Port Chester—Mutual Trust Co. of Westchester County. Rochester—Alliance Bank Rome—Rome Trust Co Schenectady—Sehenectady Trust Co Stony Brook—Bank of Suffolk County Syracuse— Citv Bank Trust Co First Trust & T eposit Co Syracuse Trust Co Trumansburg—State Bank of Trumansburg UticaCitizens Trust Co Oneida County Trust Co Utica Trust & I eposit Co Warsaw—Trust Co. of Wyoming County Watertown—Northern New York Trust Co Westbury—Bank of Westbury White Plains—County Trust Co $1,000,000 4,200,000 6,000,000 5,000,000 1,000,000 500,000 500,000 25,000,000 3,000,000 1,000,000 2,500,000 1,000,000 2,000,000 2,000,000 200,000 600,000 3,000,000 500,000 2,000,000 2,000,000 500,000 200,000 300,000 100,000 100,000 100,000 200,000 30,000 50,000 50,000 300,000 1,000,000 300,000 300,000 25,000 $500,000 6,800,000 12 000,000 10,000,000 1,000,000 2.000,000 250,000 25,000,000 1,000,000 600,000 7,000,000 500,000 2,000,000 4,000,000 400,000 650,000 10,000,000 1,000,000 4,000,000 12,000,000 700,000 400,000 300,000 25,000 25,000 20,000 120,000 6,000 50,000 50,000 60,000 500,0C0 60,000 62,500 15,000 $27,236,031 224,393,312 287,206,150 194,428,340 17,596,219 27.700,896 10,497,592 883,900,180 83,625,357 29,255,250 179,024,483 21,502,713 58,472,268 50,761,526 15,201,059 11,369,059 105,554,951 32,637.687 80,404,420 63,406,235 10,381,084 14,405,985 8,327,708 2,460,182 1,538,058 1,370,281 3,147,374 406,844 1,203,568 1,279,726 2.866,488 19)300,375 3,988,319 8,527,020 451,752 1,500,000 2,500,000 1,500,000 25,000 658,000 1,000,000 750,000 15,000 21,402,905 42,227,596 28,911,917 399,713 500,000 250,000 800,000 100,000 400,000 25,000 100,000 500,000 250,000 600,000 20.000 400,000 5,000 50,000 15,614,564 2,904,226 14.976,897 789,466 8, 638,980 582, 214 3,248,794 138, 803, 200 Total. 168,184, 861 4,207,562,560 DISTRICT NO. 3. DELAWARE. Mil ford—Milford Trust Co WilmingtonEquitable Trust Co Security Trust & Safe Deposit Co Wilmington Trust Co 1,077,829 5,477,122 7,083,707 17,874,975 NEW JERSEY. Atlantic C i t y Bankers Trust Co Equitable Trust Co Burlington—Burlington City Loan & Trust Co Camden—Camden Safe Deposit & Trust Co Gloucester City—Gloucester City Trust Co Princeton—Princeton Bank & Trust Co Riverside—Riverside Trust Co Swedesboro—Swedesboro Trust Co 100,000 200,000 100,000 500,000 100,000 100,000 100,000 100,000 100,000 100,000 800,000 30,000 150,000 100,000 20,000 546,534 3,166,687 1,748,440 12,657,162 1,176,581 2,272,164 2,039,889 945,662 250,000 125,000 300,000 175,000 200,000 300,000 6,036,853 2,173,667 4,071,310 100,000 125,000 500,000 75,000 4,918,393 2,933,057 PENNSYLVANIA. Chester—Cambridge Trust Co Dubois—Union Banking & Trust Co Harrisburg—Dauphin Deposit Trust Co Hazleton— Markle Banking & Trust Co Peoples Savings & Trust Co 242 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Capital. Surplus. Total resources. DISTRICT NO. 3—Continued. PENNSYLVANIA—continued. Honesdale—Wayne County Savings Bank Huntingdon—Grange Trust Co Lewistown—Lewistown Trust Co Lykens—Miners Deposit Bank PhiladelphiaColonial Trust Co Commercial Trust Co Fidelity Trust Co Girard Trust Co Logan Trust Co Pennsylvania Co. for Insurance on Lives and Granting Annuities Philadelphia Trust Co Provident Life & Trust Co. of Philadelphia Rittenhouse Trust Co West Philadelphia Title & Trust Co Reading—Berks County Trust Co Schuylkill Haven—Schuylkill Haven Trust Co Scranton—American Bank of Commerce Wilkes-Barre—Dime Deposit Bank Williamsport— Northern Central Trust Co Susquehanna Trust & Safe Deposit Co Williamstown—Williams Valley Bank Total $200,000 125,000 125,000 50,000 $325,000 12,500 25,000 110,000 $4,032,119 706,752 752,153 857,854 300,000 2,000,000 5,000,000 2,500,000 1,000,000 275,000 2,750,000 16,000,000 7,500,000 250,000 5,708,643 24,405,222 61,681,333 57,861,550 13,967,406 2,000,000 1,000,000 2,000,000 250,000 500,000 250,000 125,000 300,000 200,000 5,000,000 4,000,000 5,000,000 50,000 500,000 155,000 55,000 60,000 150,000 39,201,186 26,203,174 119,897,970 2,616,743 8,361,313 3,917,502 1,307,027 1,460,189 1,991,776 500,000 400,000 50,000 200,000 300,000 47,000 4,465,701 3,209,687 511,837 23,225,000 47,102,000 359,317,169 25,000 105,000 40,000 15,000 60,000 8,000 332,151 1,006,468 523,837 150,000 500,000 150,000 30,000 150,000 50,000 1,758,857 2,451,414 906,864 500,000 300,000 200,000 200,000 500,000 300,000 75,000 100,000 15,094,027 7,707,219 4,101,875 7,325,259 150,000 100,000 25,000 100,000 75,000 25,000 200,000 100,000 150,000 100,000 15,000 25,000 40,000 3,250 140,000 40,000 4,158,486 2,944,665 321,510 1,814,585 820,623 233,167 4,061,570 1,153,896 200,000 1.400,000 1,000,000 500,000 200,000 1,000,000 2,000,000 500,000 6,895,844 16,604,806 23,664,396 12,768,736 4,000,000 3,000,000 3,000,000 600,000 500,000 1,000,000 50,000 700,000 100,000 4,000,000 3,000,000 3,000,000 400,000 1,000,000 400,000 25,000 150,000 70,000 79,516,947 86.997,285 78,022,394 14,666,924 18,032,880 17,127,309 716,072 5,872,965 1,850,737 50,000 100,000 575,000 35,000 25,000 100,000 5,500 32,000 506,250 2,675 38,000 74,000 635,936 1,743,671 17,061,785 424,166 607,352 1,371,871 DISTRICT NO. 4. KENTUCKY. Brooksville—Farmers Equity Bank Georgetown—Farmers Bank & Trust Co Independence—Bank of Independence LexingtonGuaranty Bank & Trust Co Security Trust Co Richmond—State Bank & Trust Co OHIO. Akron— Central Savings & Trust Co Depositors Savings & Trust Co Firestone Park Trust & Savings Bank Peoples Savings & Trust Co AllianceAlliance Bank Co City Savings Bank & Trust Co Apple Creek—Apple Creek Banking Co Barberton—Peoples Savings & Banking Co Bridgeport—Bridgeport Bank & Trust Co Buckeye City—Commercial & Savings Bank Co. Canton—Dime Savings Bank Co Chagrin Falls—Chagrin Falls Banking Co CincinnatiBrighton Bank& Trust Co Provident Savings Bank & Trust Co Union Savings Bank & Trust Co Western Bank & Trust Co ClevelandCitizens Savings & Trust Co Cleveland Trust Co Guardian Savings & Trust Co The Pearl Street Savings & Trust Co Superior Savings & Trust Co United Banking & Savings Co Columbiana—Union Banking Co Columbus—Citizens Trust & Savings Bank Conneaut—Conneaut Mutual Loan & Trust C o . . Cuyahoga F a l l s Citizens Bank Cuyahoga Falls Savings Bank Co Dayton—Dayton Savings & Trust Co Eldorado—The Farmers State Bank Frazeysburg—Peoples Bank Co Geneva—Geneva Savings Bank Co 1 Exclusive of insurance assets of $101,408,940. EXHIBIT I 243 STATE BANK MEMBERSHIP. Capital. Surplus. Total resources. DISTRICT NO. 4—Continued. OH io—continued. Gibsonburg— Gibsonburg Banking Co Home Banking Co Hillsboro—Hillsboro Bank & Savings Co Hubbard—Hubbard Banking Co Lodi—Lodi State Bank McCutchenville—Farmers Bank Mansfield—Farmers Savings & Trust Co Massillon—Ohio Banking & Trust Co Metamora—Farmers & Merchants Bank Co Middlefield—Middlefield Banking Co Milan—The Farmers & Citizens Banking Co Minerva—Minerva Savings & Trust Co Minster—Minster State Bank Newark—Newark Trust Co Orrville—The Orrville Savings Bank Pandora—Farmers Bank Co Pemberville— Pemberville Savings Bank Co Peninsula—Peninsula Banking Co Portsmouth—Security Bank Rittman—Eittman Savings Bank Rossford—Rossford Savings Bank St. Marys—Flome Banking Co Shady side—The Shady side Bank Shelby—Citizens Bank Shiloh—Shiloh Savings Bank Co Spencer—Spencer State Bank Steubenville— Steubenville Bank & Trust Co Union Savings Bank & Trust Co Struthers—Struthers Savings & Banking Co Toledo— The Commercial Savings Bank & Trust Co... Guardian Trust & Savings Bank Upper Sandusky—Citizens Savings Bank Vermilion—Erie County Banking Co Wakeman—Wakeman Bank Co Warren—Union Savings & Trust Co Wellington— 1 irst Wellington Bank West Lafayette—West Lafayette Bank Co West Milton—Citizens State Bank Co Youngstown— City Trust & Savings Bank Dollar Savings & Trust Co $50,000 25,000 50,000 50,000 40,000 30,000 160,725 150,000 25,000 25,000 25,000 50,000 25,000 200,000 50,000 25,000 25,000 25,000 150,000 25,000 50,000 100,000 35,000 100,000 25,000 40,000 $18,500 10,000 15,000 25,000 60,000 900 160,725 37,500 5,500 25,000 50,000 25,000 125,000 45,000 ,500 5,000 5,000 250,000 8,500 5,000 22,000 3,900 50,000 29,000 1,000 $822,950 858,167 586,036 1,088,823 774,721 126,260 1,718,627 1,723,533 348,137 442,778 471,666 1,576,234 442,510 2,868,761 853,318 206,657 539,684 239,262 2,437,502 427,930 328,297 1,086,137 290,105 1,260,124 408,955 319,573 178,100 250,000 50,000 81,860 250,000 50,000 2,155,494 3,717,300 1,653,548 200,000 200,000 50,000 50,000 25,000 300,000 85,000 100,000 30,000 100,000 200,000 30,000 10,000 10,000 300,000 85,000 50,000 6,000 7,739,953 6,962,639 804,095 603,236 304,701 5,120,770 1,400,982 1,255,579 292,217 200,000 ,500,000 200,000 500,000 5,862,887 21,204,265 125,000 300,000 200,000 125,000 200,000 188,600 125,000 300,000 50,000 100,000 40,000 50,000 350,000 100,000 20,000 300,000 2,180,244 1,610,362 1,475,760 1,149,051 6,480,899 1,825,304 1,752,935 4,096,960 700,000 500,000 200,000 800,000 1,600,000 2,600,000 ., 500,000 1,000,000 200,000 200,000 !, 000,000 1,000,000 500,000 75,000 ,500,000 34,500,000 125,000 75,000 5,395,203 11,130,344 23,240,973 12,024,026 6,911,479 24,023,411 4,620,382 140,969,999 1,770,784 io;ooo PENNSYLVANIA. Ambridge—Ambridge Savings & Trust Co Beaver—Beaver Trust Co Beaver Falls—Federal Title & Trust Co Bellevue— Bellevue Realty Savings & Trust Co. Erie—Security Savings & Trust Co Greensburg—Merchants Trust Co Meadville—Crawford County Trust Co New Castle—Lawrence Savings & Trust Co PittsburghAllegheny Trust Co City Deposit Bank Colonial Trust Co Commonwealth Trust Co Oakland Savings & Trust Co Pittsburgh Trust Co Potter Title & Trust Co Union Trust Co Woodlawn—Woodlawn Trust Co WEST VIRGINIA. Moundsville—Marshall County Bank. WheelingSecurity Trust Co Wheeling Bank & Trust Co Total. 150,000 40,000 1,214,065 300,000 160,000 200,000 520,000 2,919,582 5,487,985 36,152,425 63,597,560 782,901,856 244 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Total resources. DISTRICT NO. 5. DISTRICT OF COLUMBIA. Washington—Continental Trust Co $1,000,000 $5,466,223 300,000 500,000 1,000,000 1,000,000 25.000 30,000 50,000 4,358,195 5,131,619 19,733,250 12,396,838 497,104 648,367 845,245 MARYLAND. Baltimore— American Bank Baltimore Commercial Bank Baltimore Trust Co Maryland Trust Co Gwynn Oak Junction—Liberty Bank of Baltimore County Hamilton—Hamilton Bank Overlea—Overlea Bank 6,000 12,500 20,000 NORTH CAROLINA. Asheville—Battery Park Bank CharlotteAmerican Trust Co Independence Trust Co High Point—Bank of Commerce New B e r n New Bern Banking & Trust Co Peoples Bank Winston-Salem—Wachovia Bank & Trust Co. 100,000 100,000 3,197,831 1,050,000 500,000 100,000 375,000 250,000 16,000 13,742,624 3,965,665 1,085,707 100,000 100,000 1,250,000 25,000 50,000 750,000 1,704,486 2,335,008 31,959,672 200,000 150,000 3,582,804 110,000 100,000 100,000 100,000 125,000 50,000 10,000 75,000 50,000 30,000 978,783 670,038 1,403,583 2.129,542 1,499,196 100,000 93,300 75,000 100,000 25,000 100,000 75,000 100,000 40,700 100,000 30,490 42,500 5,600 25,000 23,000 25,000 25,000 10,500 1,251,562 673,121 1,653,165 557,391 427,826 697,320 1,045,286 1,206,884 554,260 SOUTH CAROLINA. Charleston—Carolina Savings Bank Cheraw— Bank of Cheraw Merchants & I1 armers Bank Chester—Commercial Bank Darlington—Bank of Darlington Florence—Commercial & Savings Bank Georgetown— Bank of Georgetown Peoples Bank of Georgetown Harts ville—Bank of Hartsville Rock Hill—Citizens Bank & Trust Co.. St. Matthews—The Home Bank Sumter—Peoples Bank Union—Nicholson Bank & Trust Co Westminster—Westminster Bank Woodruff—Bank of Woodruff VIRGINIA. Blackstone—Citizens Bank Cambria—Cambria Bank (Inc.) Charlottesville—Commerce Bank & Trust Co Chase City—Peoples Bank & Trust Co. Christiansburg—Bank of Christiansburg Emporia— Greensville Bank Merchants & Farmers Bank Harrisonburg—Peoples Bank of Harrisonburg NorfolkCitizens Bank of Norfolk Marine Bank Richmond— Bank of Commerce & Trusts The Savings Bank of Richmond Union Bank of Richmond 100,000 30,000 100,000 100,000 34,000 717,312 269,742 153,389 656,424 1,186,950 900,446 636,629 827,950 '207,554 2,464,117 5,394,668 2,454,672 3,434,367 WEST VIRGINIA. Charleston—Kanawha Valley Bank Franklin—Franklin Bank Grafton—Grafton Banking & Trust Co Total. DISTRICT NO. 6. ALABAMA. BirminghamAmerican Trust & Savings B a n k . . . Birmingham Trust & Savings Bank Carrollton—Pickens County State Bank Cullman—Alabama Bank & Trust Co Eufaula—Bank of Eufaula 9,723,313 14,582,549 210,698 532,888 705,760 EXHIBIT I 245 STATE BANK MEMBERSHIP. Total resources. DISTRICT NO. 6—Continued. ALABAMA—continued. Huntsville—Farmers State Bank Marion—Marion Central Bank MobileMerchants Bank Peoples Bank Union Commercial Bank Montgomery—Merchants Bank of Montgomery. Union Springs—American Bank $100,000 50,000 $35,000 100,000 $942,062 644,709 200,000 200,000 200,000 100,000 50,000 300,000 200,000 6,595 20,000 5,000 7,228,622 6,092,730 1,280,100 1,329,985 299,467 100,000 200,000 30,000 100,000 100,000 50,000 250,000 30,000 100,000 20,000 11,000 1,624,850 1,063,297 521,907 1,379,280 839,270 300,051 6,150,578 223,308 FLORIDA. D eland—Volusia County Bank Jacksonville—American Trust Co Leesburg—Leesburg State Bank Miami—The Southern Bank & Trust Co Orlando—Bank of Orange & Trust Co Tallahassee—The Exchange Bank Tampa—Citizens American Bank & Trust Co. Winter Park—Union State Bank 20,000 4,000 500,000 1,500 GEORGIA. Athens—American State Bank AtlantaAtlanta Trust Co Central Bank & Trust Corporation. Georgia Savings Bank & Trust Co.. Trust Co. of Georgia Brunswick— Brunswick Bank & Trust Co Glynn County Bank Calhoun—Peoples Bank Camilla—Bank of Camilla Canon—The Canon Bank Cave Spring—Bank of Cave Spring Commerce—Northeastern Banking Co.. Grayson—Bank of Grayson Hart well—Hart well Bank Jackson—Jackson Banking Co Louisville—Bank of Louisville Metter—Citizens Bank Sardis—Peoples Bank Sasser—Bank of Sasser Savannah— American Bank & Trust Co Citizens & Southern Bank Citizens Trust Co The Hibernia Bank of Savannah... Mercantile Bank & Trust Co Savannah Bank & Trust Co West Point—Citizens Bank Winder—Farmers Bank Winterville—Pittard Banking Co 100,000 20,000 941,332 1,000,000 1,000,000 200,000 1,000,000 100,000 300,000 100,000 1,000,000 3,562,986 16,853,709 1,776,175 6,466,051 100,000 100,000 55,000 50.000 25,000 25,000 100,000 40,000 60,000 50,000 25,000 30,000 25,000 25,000 90,000 20,000 11,000 50,000 12,500 26,000 50,000 7,750 20,000 10,000 55,000 20,000 6,000 25,000 1,854,970 1,026,974 854,130 567,131 154,432 313,576 1,160,960 247,223 764,148 417,960 485,211 314,828 192,436 194,487 200,000 2,000,000 200,000 200,000 200,000 700,000 50,0C0 50,000 25,000 10,500 2,500,000 50,000 200,000 20,000 700,000 1,000 2,500 11,000 1,054,669 55,578,064 1,095,031 7,503,628 1,522,067 11,347,996 415,282 501,961 201,272 150,000 50,000 25,000 4,200 7,500 2,973,749 578,610 446,061 200,000 4,000,000 400,000 2,000,000 750,000 200,000 800,000 800,000 60,000 20,000 1,500,000 150,000 2,500,000 500,000 10,000 217,400 500,000 1,800 750,341 64,329,856 7,692,682 67,538,742 12,795,559 1,028,996 17,832,338 7,350,868 319,647 100,000 25,000 25,000 12,000 1,564,741 266,499 750,000 200,000 225,000 50,000 6,291,304 2,340,995 21,216,000 13,363,245 367,145,101 LOUISIANA. Baton Rouge—Union Bank & Trust Co Gretna—Jefferson Trust & Savings Bank Iota—Bank of Iota • New OrleansAmerican Bank & Trust Co Canal-Commercial Trust & Savings Bank Citizens Bank & Trust Co. of Louisiana Hibernia Bank & Trust Co Interstate Trust & Banking Co Liberty Bank & Trust Co Marine Bank & Trust Co Pan-American Bank & Trust Co New Roads—Pointe Coupee Trust & Savings Bank. MISSISSIPPI. Laurel—Commercial Bank & Trust Co. Summit—Union Bank of Pike TENNESSEE. Chattanooga—Chattanooga Savings Bank. Nashville—Bank of Tennessee Total 246 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. ; Total resources. Capital. DISTRICT NO. 7. Auburn—Auburn State Bank Barrington—First State Bank Bloomington—State Bank of Bloomington ChicagoAustin State Bank Capital State Savings Bank Central Trust Co. of Illinois Chicago Trust Co Depositors State Bank First Trust & Savings Bank Foreman Brothers Banking Co Great Lakes Trust Co Harris Trust & Savings Bank Home Bank & Trust Co Hyde Park State Bank Illinois Trust & Savings Bank Kasper State Bank Madison & Kedzie State Bank Mechanics & Traders State Bank Mercantile Trust & Savings Bank Merchants Loan & Trust Co Noel State Bank Northern Trust Co North Side State Savings Bank Northwestern Trust & Savings Bank Second Security Bank Security Bank of Chicago Standard Trust & Savings Bank State Bank of Chicago.. ^ Union Trust Co United State Bank of Chicago Cicero—Western State Bank Des Plaines—Des Plaines State Bank Elizabeth—Elizabeth State Bank Elmhurst—Elmhiirst State Bank Eureka—Farmers State Bank Evanston— Evanston Trust & Savings Bank State Bank & Trust Co..' Fulton—Whiteside County State Bank Geneva—State Bank of Geneva Hinsdale—Hinsdale State Bank Joliet— Commercial Trust & Savings Bank Joliet Trust & Savings Bank Kewanee—Union State Savings Bank & Trust Co. La Grange—La Grange State Bank Magnolia—First State Bank Marshall—Marshall State Bank Martinsville—Martinsville State Bank Matteson—First State Bank Mattoon—Central Illinois Trust & Savings B a n k . . Moline— Moline Trust & Savings Bank Peoples Savings Bank & Trust Co State Savings Bank & Trust Co Mount Carroll—Carroll County State Bank Oak Park Oak Park Trust & Savings Bank Suburban Trust & Savings Bank Oswego—Oswego State Bank St. Charles—Stewart State Bank Shannon—State Bank of Shannon Springfield—Ridgely Farmers State Bank Sycamore—Pierce Trust & Savings Bank..' Wenona—First State Bank $25,000 50,000 100,000 $25,000 10,000 150,000 $628,289 450,056 2,155,341 200,000 200,000 6,000,000 1,000,000 300,000 5,000,000 1,500,000 3,000,000 2,000,000 300,000 200,000 5,000,000 500,000 200,000 200,000 250,000 5,000,000 300,000 2,000,000 200,000 600,000 200,000 400,000 1,000,000 1,500,000 1,500,000 200,000 100,000 50,000 40,000 60,000 100,000 65,000 20,000 1,000,000 300,000 100,000 5,500,000 1,500,000 600,000 3,000,000 75,000 50,000 10,000,000 300,000 50,000 50,000 75,000 9,000,000 100,000 3,000,000 20,000 150,000 100,000 250,000 500,000 4,000,000 2,000,000 30,000 25,000 35,000 15,600 25,000 5,000 4,348,870 1,761,225 73,572,011 12,380,096 4,862,887 90,329,060 30,287,496 9,734,107 38,644,349 4,918,706 2,934,437 141,144,803 10,319,227 2,930,597 2,648,821 5,158,154 137,569,158 4,451,032 44,375,938 2,650,153 13,681,848 3,356,262 6,541,206 12,045,797 44,288,118 49,883,354 1,339,094 1,518,617 761,804 549,781 959,369 696,092 100,000 300,000 50,000 50,000 50,000 10,600 300,000 5,500 10,000 25,000 100,000 100,000 150,000 50,000 25,000 60,000 50,000 25,000 100,000 5,000 35,000 25,000 25,000 5,000 5,000 20,000 10,000 75,000 1,098,002 1,059,790 1,637,238 1,272,475 233,974 359,215 491,042 160,917 1,089,851 225,000 250,000 300,000 50,000 85,000 200,000 165,000 35,000 3,964,545 6,254,758 5,560,396 1,075,196 200,000 100,000 50,000 100,000 25,000 600,000 100,000 50,000 50,000 10,000 10,000 50,000 18,500 150,000 75,000 35,000 3,120,557 667,018 421,733 1,297,817 419,363 7,509,719 969,731 635,793 40,000 25,000 25,000 400,000 27,500 150,000 25,000 30,000 10,000 16,000 2,000 35,100 75,000 7,000 7,500 230,669 298,085 209,370 2,763,242 163,885 3,797,616 229,545 432,756 70,000 50,000 45,000 35,500 662,462 487,238 * 1,276,515 6,017,898 513,128 694,123 592,563 INDIANA. Angola—Steuben County State Bank Bargersville—Farmers State Bank Colfax—Farmers State Bank Connersville—Fayette Bank & 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 247 EXHIBIT I—STATE BANK MEMBERSHIP. Capital. Surplus. Total resources. DISTRICT NO. 7—Continued. INDIANA—continued. La Fontaine—Farmers State Bank Marion—Grant Trust & Savings Bank North Liberty—North Liberty State Bank.. Peru—Peru Trust Co Richmond—Dickinson Trust Co Rochester—United States Bank & 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 Tip ton—Farmers Loan & Trust Co Winamac—First Trust & Savings Bank Algona—County Savings Bank Alta Vista—Alta Vista Savings Bank Ames—Story County Trust & Savings Bank Audubon—Iowa Savings Bank Avoca—Avoca State Bank Barnes City—Farmers Savings Bank Battle Creek—Battle Creek Savings Bank Bellevue—Bellevue State Bank Blairsburg—State Bank of Blairsburg Brighton—Brighton State Bank Britt—Commercial State Bank Cedar Falls—Security Trust & Savings Bank Cedar Rapids—Iowa'State Savings Bank Chariton—State Savings Bank Charter Oak—Farmers State Bank Cherokee—Cherokee State Bank Clinton—Peoples Trust & Savings Bank Davenport—American Commercial & Savings Bank. Decorah— Citizens Savings Bank Wirmeshiek County Bank Des Moines— Bankers Trust Co Central State Bank First Trust & Savings Bank Iowa Loan & Trust Co Elberon—Farmers State Bank Eldora—Citizens Savings Bank Elkader—Elkader State Bank EllsworthFarmers State Bank State Bank of Ellsworth Fairbank—Fairbank State Bank Fairfield—Iowa State Savings Bank Fort Madison—American State Bank Fostoria—Citizens Savings Bank Garwin—Garwin State Bank Gilbert—Gilbert Savings Bank Gilman—Citizens Sayings Bank Grant—Farmers Savings Bank Humboldt—Peoples State Bank Jefferson—Jefferson Savings Bank Knoxville—Guaranty State Bank Lakota—Farmers & Drovers State Bank Leon—Farmers & Traders State Bank Lockridge—Lockridge Savings Bank Logan—State Savings Bank Lowden—Lowden Savings Bank Lytton—Farmers Savings Bank Malcom—Malcom Savings Bank Mapleton—Mapleton Trust & Savings Bank , Marshalltown—Marshalltown State Bank.. 4 Mason City-—Commercial Savings Bank Mediapolis—Commercial State Bank Missouri Valley—State Savings Bank Mondamin—Mondamin Savings Bank Monticello— Lovell State Bank. Monticello State Bank Moville—Moville State Bank New Hampton—State Bank Newton— Citizens State Bank Jasper County Savings Bank $35,000 100,000 50,000 100,000 200,000 75,000 $491 160,000 10,000 25,000 125,000 25,000 $138,927 1,982,928 351,752 1,398,810 3,090,949 808,950 200,000 200,000 25,000 350,000 50,000 40,000 128,000 100,000 12,000 200,000 50,000 1,000 3,634,718 3,424,492 347,303 6,450,195 911,385 228,794 100,000 30,000 50,000 50,000 50,000 35,000 40,000 30,000 25,000 50,000 60,000 50,000 100,000 50,000 40,000 75,000 300,000 700,000 25,000 11,000 12,500 20,000 15,000 60,000 18,000 8,500 25,000 60,000 8,000 28,000 50,000 8^000 75,000 300,000 700,000 2,113,139 499,746 860,572 342,367 794,319 569,759 886,707 1,050,970 293,792 682,171 1,340,151 435,621 2,491,936 912,160 463,717 1,390,865 5,293,603 17,410,330 50,000 150,000 50,000 50,000 703,645 2,234, 310 1,000,000 250,000 200,000 500,000 40,000 50,000 50,000 200,000 250,000 17,122 250,000 20,000 15,000 25,000 5,089,403 7,092,000 1,657,797 9,868,911 783,213 240,950 1,080,838 18,000 10,000 35,000 7,000 12,000 6,000 7,500 15,000 10,000 12,000 10,000 30,000 9,000 50,000 25,000 17,500 10,000 7.000 203,883 318,796 565,759 2,010,258 1,250,388 214,598 548,785 340,123 550,456 302,149 909,214 554,672 502,764 291,502 986,283 445,275 492,001 467,464 470,034 542,363 713,516 2,648,163 1,763,271 665,417 559,127 397,726 200,000 200,000 35,000 50,000 100,000 200,000 20,000 40,000 1,360,960 2,268,660 395,132 822,020 60,000 100,000 15,000 50,000 627, 761 1,510,567 25,000 35,000 26,000 100,000 100,000 25,000 50,000 50,000 25,000 25,000 100,000 50,000 50,000 30,000 100,000 25,000 50,000 25,000 30,000 50,000 75,000 100,000 100,000 50,000 50,000 35,000 10,000 24,000 100,000 8,000 4,000 25,000 248 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Total resources. DISTRICT NO. 7—Continued, low A—continued. Ogden—City State Bank. Osage—Home Trust & Sayings 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 CityFarmers Savings Bank Sac County State Bank Sibley—Sibley State Bank Sioux Center—Sioux Center State Bank Sioux City—Bankers Loan & Trust Co Sutherland—First Savings Bank Terril—Terril Savngs Bank Thompson—State Bank of Thompson Tipton—Farmers & Merchants .Savings Bank.. Ute—State Savings Bank. Vail—Farmers State Bank Wapello—Wapello State Savings Bank "Waterloo—Waterloo Bank & Trust Co $50,000 50,000 100,000 50,000 50,000 25,000 35,000 25,000 $10,000 25,000 30,000 1,500 17,000 10,000 25,000 2,500 $593,358 613,702 1,575,033 497,300 629,325 249,472 552,570 242,174 50,000 75,000 50,000 25,000 100,000 50,000 25,000 30,000 50,000 50,000 50,000 30,000 200,000 25,000 75,000 15,000 35,000 8,000 5,000 1,500 8,000 15,000 15,000 8,000 10,000 50', 000 763,289 1,218,958 783,175 347,358 655,468 423,923 179.385 295,062 617,033 361,365 364,468 563,252 1,782,126 120,000 110,000 150,000 100,000 30,000 50,000 2,262,880 1,565,559 2,276,838 50,000 75,000 100,000 40,000 40,000 125,000 1,106,027 1,023,737 3,791,254 150,000 150,000 75.000 150,000 2,289,788 3,574,736 25,000 25,000 16,000 8,500 425,881 325,322 250,000 100,000 400,000 25,000 100,000 250,000 25,000 400,000 5,000 29,000 5,401,627 1,575,933 10,743,815 154,196 1,821,730 50,000 50,000 40,000 25,000 112,500 25,000 25,000 40,000 100,000 10,000 25,000 15,000 14,000 87,500 5,000 5,000 2,350 20,000 801,910 1,161,340 1,106,007 511,780 1,449,951 360,319 481,228 414,394 1,213, 274 25,000 40,000 25,000 25,000 30,000 25,000 100,000 25,000 40,000 12,500 1,600 6,000 6,000 150,000 705,936 882,361 625,325 356,103 568,256 518,694 4,939,094 500,000 000,000 000,000 750,000 000,000 500,OuO 500,000 000,000 500,000 000,000 30,000 35,000 50,000 40,000 200,000 350,000 200,000 750,000 300,000 1,000,000 4,000,000 1, 300, COO 175,000 4,000,000 8,500 15,000 10,000 20,000 13, 644,876 21,321,231 17,907,902 25,843,603 14,417,698 38,134,998 119,690,469 38,093,426 6,517,627 80,174,511 473,047 344,598 792,878 603,707 MICHIGAN. AdrianAdrian State Sayings Bank Commercial Savings Bank Lenawee County Savings Bank AlbionAlbion State Bank Commercial & Savings Bank Alpena—Alpena County Savings Bank Ann ArborFarmers & Mechanics Bank State Savings Bank ArmadaArmada State Bank Farmers State Bank Bay CityBay City Bank Farmers State Sayings Bank Peoples Commercial & Savings Bank Bellevue—Farmers State Bank Benton Harbor—Benton Harbor State Bank Big RapidsBig Rapids Savings Bank Citizens State Bank Birmingham—First State Savings Bank Caledonia—State Bank of Caledonia Caro—State Savings Bank Carson City—Farmers & Merchants State Bank... Carsonville—The First State Bank Cassopolis—Cass County State Bank Charlotte—Eaton County Savings Bank ChelseaFarmers & Merchants Bank Kempt Commercial & Savings Bank Coloma—State Bank of Coloma Coopersville—Peoples Savings Bank Croswell—First State Savings Bank Davison—Davison State Bank Dearborn—Dearborn State Bank DetroitAmerican State Bank Bank of Detroit Central Savings Bank Detroit Savings Bank First State Bank Peninsular State Bank Peoples State Bank of T etroit The Dime Savings Bank United Savings Bank Wayne County and Home Savings Bank. ... Edmore—Edmore State Bank Elk Rapids—Elk Rapids State Bank Evart—First State Savings Bank Farmington—Farmington State Savings Bank... Fenton— Commercial Savings Bank Fenton State Savings Bank 25,000 25,000 13,500 12,000 559,262 762,438 249 EXHIBIT I—STATE BANK MEMBERSHIP. Surplus. Total resources. DISTRICT NO. 7—Continued. MICHIGAN—continued. FlintCitizens Commercial & Savings Bank Genesee County Savings Bank Industrial Savings Bank Union Trust & Savings Bank Flushing—Peoples State Bank Fountain—Bank of Fountain Frankenmuth—Frankenmuth State Bank FremontFremont State Bank Old State B ank Grand Haven— Grand Haven State Bank Peoples Savings Bank Grand RapidsCity Trust & Savings Bank Commercial Savings Bank Grand Rapids Savings Bank Kent State Bank Peoples Savings Bank Greenville—Commercial State Savings Bank Hart—Oceana County Savings Bank Highland Park—Highland Park State Bank Hillsdale—Hillsdale Savings Bank HollandFirst State Bank Holland City State Bank Holly—First State & Savings Bank Hopkins—The Hopkins State Bank Howell—First State & Savings Bank HudsonBoise State Savings Bank Thompson Savings Bank Imlay City— Lapeer County Bank • Peoples State Bank Ionia—State Savings Bank Jackson— Central State Bank Jackson State Savings Bank Jonesville—Grosvenor Savings Bank Lake Odessa—Lake Odessa State Savings Bank Lakeview— Commercial State Savings Bank Farmers & Merchants State Bank Lansing—Lansing State Savings Bank Lapeer—Lapeer Savings Bank Lenox and Richmond—The Macomb County Savings Bank Lowell—City State Bank Ludington—Ludington State Bank Manchester— Peoples Bank Union Savings Bank Manistce—Manistee County Savings Bank Marcellus—G. W. Jones Exchange Bank Marshall—Commercial Savings Bank Mason— The Farmers Bank First State & Savings Bank Midland— Chemical State Savings Bank Milan— Milan State Savings Bank Milford—First State Bank Monroe—B. Dansard & Sons State Bank Morenci—Waken eld State Bank Mount Clemens—Ullrich Savings Bank Mount PleasantExchange Savings Bank Isabella County State Bank Nashville— Fanners & Merchants Bank State Savings Bank Niles City—Niles City Bank Northville—Lapham State Savings Bank Onsted—Onsted State Bank Paw Paw—Paw Paw Savings Bank Petersburg—The H. C. McLachlin & Co. State Bank Petoskey—First State Bank Pontiac— American Savings Bank First Commercial Bank Pontiac Savings Bank $150,000 500,000 250,0C0 100,000 25,000 25,000 50,000 $210,000 300,000 250,000 160,000 15,000 5,000 25,000 $4,839,972 10,792,676 10,702,208 5,513,784 329,887 190,298 977,288 25,000 50,000 25,000 25,000 650,405 1,018,241 75,000 50,000 75,000 22,000 1,938,211 810,362 200,000 300,000 400,000 500,000 200,000 50,000 40,000 1,000,000 60,000 40,000 60,000 350,000 500,000 100,000 15,000 13,000 700,000 25,000 2,769,424 3,309,304 11,626,312 11,355,949 2,551,847 976,331 619,126 22,975,650 1,036,180 100,000 100,000 30,000 25,000 75; ooo 20,000 50,000 60,000 5,000 15,000 2,283,967 1,775,915 i; 437,916 495,819 591,510 75,000 100,000 25,000 50,000 820,332 1,475,230 50,000 50,000 100,000 10,000 10,000 100,000 1,117,493 767,430 1,596,172 100,000 100,000 50,000 25,000 26,000 100,000 25,000 12,500 1,986,627 2,715,606 584,300 392,830 25,000 25,000 150,000 50,000 50,000 25,000 100,000 3,250 5,000 100,000 10,000 10,000 10,000 20;000 236,424 297.827 4, 479,584 774,743 894,872 685,028 1,600,343 25,000 25,000 100,000 40,000 100,000 15,000 50,000 100,000 20,000 20,000 563,755 813,303 2,236,988 619,254 1,195,517 50,000 25,000 50,000 25,000 25,000 100,000 50,000 100,000 10,000 15,000 5,000 8,000 6,000 20.000 30) 000 100,000 576,790 671,090 827,035 356,256 637.828 1,964,986 921,857 2,381,062 50,000 60,000 30,000 9,000 1,152,846 1,370,529 30,000 25,000 100,000 50,000 25,000 40,000 25,000 60,000 35,000 5,750 25,000 15,000 6,000 10,000 5,000 12,000 761,350 411,603 923,707 721,595 296,144 466,574 500,640 985,617 200,000 200,000 500,000 50,000 90,000 100,000 2,559,143 4,473,244 7,313,744 250 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Capital. Surplus. Total resources. DISTRICT NO. 7—Continued. MICHIGAN—continued. Port Huron—Federal Commercial & Savings Bank. Redford—Redford State Savings Bank Rochester—Rochester Savings Bank Rogers City—Presque Isle County Savings Bank.... Romeo—Romeo Savings Bank Royal OakFirst Commercial State Bank Royal Oak Savings "Bank Saginaw— American State Bank Bank of Saginaw Saline—Saline Savinss Bank St. Charles—St. Charles State Bank St. Clair—Commercial & Savings Bank Saugatuck—Fruit Growers State Bank South Haven—Citizens State Bank Suttons Bay—Leelanau County Savings Bank Tecumseh— Lilley State Bank Tecumseh State Savings Bank Traverse City—Traverse City State Bank Vicksburg— Farmers State Bank First State Bank Warren—State Savings Bank of Warren Washington—Washington Savings Bank Wayne—Wayne Savings Bank Williamston— Crossman & Williams State Bank Williamston State Bank $150,000 25,000 50,000 35,000 50,000 $50,000 10,500 10,000 15,000 30,000 $5,428,410 657,819 636,576 843,166 1,321,556 25,000 40,000 15,000 20,000 888,289 1,189,570 200,000 500,000 25,000 25,000 50,000 50,000 100,000 25,000 100,000 700,000 25,000 5,000 10,000 15,000 50,000 10,000 3,501,657 17,507,720 505,025 481,213 996,456 699,924 1,369,701 346,908 40,000 26,000 200,000 20,000 26,000 100,000 645,765 864,726 2,988,624 25,000 30,000 25,000 25,000 50,000 5,000 3,500 25,000 10,000 50,000 484,557 405,666 707,601 336,718 1,061,250 40,000 50,000 12,000 10,000 426,642 492,418 100,000 125,000 50,000 50,000 25,000 100,000 60,000 300,000 50,000 25,000 10,000 25,000 10,000 14,000 15,000 60,000 1,924,125 1,795,826 573,826 1,016,132 430,562 2,133,313 993,135 2,809,417 ,000,000 200,000 .,000,000 ,000,000 100,000 45,000 25,000 50,000 200,000 10,000 1,000,000 1,000,000 50,000 25,000 10,000 10,000 8,820,159 2,610,846 24,500,721 31,522,962 1,830,710 582,152 337,289 1,261,358 100,000 125,000 40,000 32,500 1,241,485 1,385,294 100,000 200,000 50,000 50,000 100,000 25,000 200,000 125,000 10,000 3,000 40,000 9,500 4,314,938 3,084,727 1,876,348 739,417 1,294,894 509,792 WISCONSIN. Baraboo—Bank of Baraboo Burlington—Bank of Burlington Clinton—Citizens Bank Dela van—Citizens Bankof D elavan Green Lake—Green Lake State Bank Kenosha—Merchants & Savings Bank Kewaunee—State Bank of Kewaunee 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 Plymouth— P lymouth E xchange B ank State Bank of Plymouth Sheboygan— Bank of Sbeboygan Citizens State Bank Sturgeon Bay—Bank of Sturgeon Bay Waupun—State Bank of Waupun Wausau—Marathon County Bank Winneconne—Union Bank Total •. 83,022,000 71,011,363 1,683,694,386 DISTRICT NO. 8. ARKANSAS. Arkansas City—Desha Bank & Trust Co Batesville— Citizens Bank & Trust Co Union Bank and Trust Co Blytheville—Farmers Bank & Trust Co Dardanelle—Dardanelle Bank & Trust Co Dumas—Merchants & Farmers Bank El Dorado—Bank of Commerce England—Citizens Bank & Trust Co Helena—Security Bank & Trust Co Jonesboro— Bank of Jonesooro Jonesboro Trust Co Lake Village—Chicot Bank & Trust Co 100,000* 100,000 1,384,430 50,000 75,000 50,000 50,000 50,000 50,000 100,000 100,000 15,000 12,000 35,000 10,000 15,000 5,000 10,000 50,000 578,065 1,373,673 906,970 557,489 476,657 131,927 691,795 2,058,994 150,000 100,000 100,000 150,000 50,000 21,000 3,533,192 1,646,547 955,274 251 EXHIBIT I—STATE BANK MEMBERSHIP. Capital. Surplus. Total resources. DISTRICT NO. 8—Continued. ARKANSAS—continued. Little R o c k American Bank of Commerce & Trust Co. Bankers Trust Co Southern Trust Co , Union & Mercantile Trust Co W. B. Worthen Co., Bankers MagnoliaColumbia County Bank Farmers Bank & Trust Co Pine Bluff—Cotton Belt Savings & Trust Co.. Prescott—First State Bank Texarkana—Merchants & Planters Bank Warren—Warren Bank $750,000 250,000 500,000 400,000 200,000 $150,000 25,000 100,000 200,000 200,000 $14,394,354 3,964,766 6,009,694 6,575,055 2,035,483 50,000 50,000 100,000 50,000 200,000 75,000 11,500 30,000 40,000 1,500 14,000 20,000 593,714 1,086,435 1,010,028 340,976 1,234,884 577,849 400,000 4,115,464 60,000 50,000 36,000 10,000 15,000 30,000 5,000 10,000 7,500 5,227,813 2,733,136 896,611 1,017,231 771,013 1,412,506 320,497 863,068 225,254 166 296 9,273,119 ILLINOIS. Belleville—Belleville Savings Bank East St. L o u i s Illinois State Bank Union Trust & Savings Bank Edwardsville—Citizens State & Trust Bank. Effingham—Effingham State Bank Gillespie—Gillespie Trust & Savings Bank... Greenville—State Bank of Hoiles & Sons Lebanon—State Bank of Lebanon Litchneld—Litchfield Bank & Trust Co Louisville—Clay County State Bank Madison—Union Trust Co Quincy—State Savings Loan & Trust Co 150,000 I 400,000 200,000 60,000 50,000 50,000 100,000 50,000 100,000 25,000 50,000 1,000,000 200 000 INDIANA. Evansville—Mercantile Commercial Bank.. Paoli—Paoli State Bank 200,000 25,000 100,000 1 1 750 i 1 100,000 21,000 ! 2,549,260 403,705 KENTUCKY. Harrcdsburg—State Bank & Trust Co LouisvilleKentucky Title Savings Bank & Trust Co. Liberty Insurance Bank Lincoln Savings & Trust Co Owensboro—Central Trust Co Bowling Green—Pike County Bank Clayton—Farmers & Commercial Savings B a n k . . Jefferson City—Exchange Bank of Jefferson City.. Lexington—Lafayette County Trust Co Linn Greek—Camden County Bank Macon—State Exchange Bank of Macon Maplewood—Bank of Maplewood Marshall—Wood & Huston Bank St. L o u i s American Trust Co Farmers & Merchants Trust Co Franklin Bank International Bank of St. Louis Lafayette South Side Bank Liberty Bank Mercantile Trust Co Mississippi Valley Trust Co U n i t e ! States Bank Versailles—Bank of Versailles Waynesville—Bank of Waynesville 682,754 350,000 500,000 500,000 200,000 70,000 750, 000 100,000 40,000 7,866,749 14,134,528 3,142,808 1,747,485 25,000 75,000 100,000 75,000 25,000 100,000 50,000 100,000 6,750 7 500 20,000 15,000 35.000 20,000 7,200 150,000 326,713 229,132 1 312,041 307,285 322,890 1,001,647 555,185 2,037,632 1,000,000 200,000 600,000 500,000 800,000 1,500,000 3,000,000 3,000,000 1,000,000 75,000 25,000 128,000 30 000 800,000 500,000 400, 000 1,000,000 7,000,000 3,500,000 700,000 7,000 5 000 9,770,405 3,337,187 11.311,079 9,137,875 16,531,746 20 869,508 63,343,189 39 333,195 15 998,957 577,984 562,378 200,000 40,000 50,000 20 000 18 941 50 000 1 890,063 385,093 1 380,171 1 500,000 350,000 500,000 1 800.000 1,500 000 175 000 30 500 500 000 24 400,000 19,797 141 TENNESSEE. Brownsville—First State Bank Dyer—The Farmers & Merchants Bank. Dyersburg—Citizens Bank Memphis— Bank of Commerce & Trust Co Commercial Trust & Savings Bank.. Guaranty'Bank & Trust Co Union & Planters Bank & Trust Co. Total. 178983—20 17 28 944,780 7 290,960 5,179', 142 40 805,303 392 409,088 252 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Capital. Surplus. Total resources. DISTRICT NO. 9. MICHIGAN. Gladstone—Gladstone State Savings Bank. Gwinn—Gwinn State Savings Bank Iron Mountain—Commercial Bank Laurium—State Savings Bank Menominee—The Commercial Bank Sault Ste MarieyCentral Savings Bank Sault Savings Bank $50,000 25,000 100,000 100,000 100,000 $15,000 15,000 50,000 125,000 20,000 SI,210,750 352,115 1,365,807 I", 288,920 717,494 100,000 100,000 20,000 35,000 956,817 1,532,398 50,000 50,000 25;ooo 50,000 25,000 50,000 50,000 200,000 300,000 500,000 50,000 125,000 30,000 50,000 10,000 10,000 50,000 30,000 10,000 10,000 1,545,254 1,041,544 383,034 851,239 897,673 580,667 727,533 200,000 100,000 30,000 10,000 60,000 30,000 5,971,419 5,402,091 2,582,253 683,621 1,477,854 219,570 200,000 456,422 300,000 40,000 74,060 60,000 2,873,458 895,493 2,747,397 100,000 125,000 50,000 25,000 1,987,173 446,881 25,000 30,000 25,000 25,000 100,000 5,000 30,000 8,500 8,000 20,000 335,285 742,664 441,036 294,926 1,974,990 400,000 200,000 100,000 50,000 4,771,830 3,802,531 MINNESOTA. Benson—Swift County Bank Clarkfield—Clarkfield State Bank Jeffers—State Bank of Jeffers Lake City—Lake City Bank of Minnesota Lewistori—Security State Bank Luverne—Rock County Bank Madelia—State Bank of Madelia Minneapolis— North American Bank St. Anthony Falls Bank Wells-Dickey Trust Co New Richland—State Bank of New Richland.. Red Wing—First Security Bank Revere—State Bank of Revere St. P a u l Central Bank Midland Trust & Savings Bank Peoples Bank South St. P a u l Drovers State Bank Exchange State Bank Spring ValleyFarmers State Bank First State Bank Waconia—Farmers State Bank Westbrook—Citizens State Bank Willmar—Kandiyohi County Bank Winona— Deposit Bank of Winona Merchants Bank of Winona MONTANA. Billings—Security Trust & Savings Bank Bozeman— Gallatin Trust & Savings Bank Security Bank & Trust Co Broadus—Powder River County Bank Denton—Denton State Bank Dillon— Beaverhead State Bank Security State Bank Ennis—Southern Montana Bank Hamilton—Ravalli County Bank HelenaConrad Trust & Savings Bank Union Bank & Trust Co Hingham—Hingham State Bank Hinsdale—Valley County Bank Inverness—Inverness State Bank Laurel—American Bank of Laurel Lewistown— Bank od Fergus County Empire Bank & Trust Co Lewistown State Bank Missoula—American Bank c'c Trust Co Nashua—State Bank of Nashua Opheirn—First State Bank 01 Opheim Park City—Park City State Bank R eed Point—It eed Point State 13 ank Roundup—Citizens State Bank Sidney—Yellowstone Valley Bank & Trust Co White Sulphur Springs—Central State Bank 100,000 100,000 100,000 25,000 25,000 j j j I 1,034,349 4,000 995,522 270,554 196,702 210,676 50,000 50,000 25,000 50,000 3,700 20,000 12,500 271,522 234,530 398,854 672,449 200,000 250,000 35,000 25,000 25,000 25,000 100,000 150,000 6,000 5,000 3,000 2,500 2,511,780 5,298,137 290,687 203,497 185.391 162; 669 250,000 100,000 50,000 100J000 25,000 25,000 40,000 25,000 50,000 100,000 GO, 000 250.000 20,000 20,000 11,500 3,000 5,000 5,000 35,000 10,000 15,000 3,73(5,661 1,040,729 443,S89 1,887,218 277,361 254,319 359,379 188,368 841,224 629.691 409; 027 50,000 100,000 25,000 25,000 10,000 25,000 5,000 5, 000 582,204 2,261,024 354,767 444,871 25,000 N O R T H DAKOTA. Enderlin—Enderlin State Bank Fargo—Northern Savings Bank Ilettinger—Hettinger State B ank Noouan—Security State Bank I | I EXHIBIT I 253 STATE BANK MEMBERSHIP. Capital. Surplus. Total resources. DISTRICT NO. 9—Continued. SOUTH DAKOTA. Belle Fourche—Butte County B a n k Brookings—Bank of Brookings C a m p Crook—Little Missouri B a n k Chamberlain— Brule State B a n k Groton—Brown County Banking Co Hecla—Farmers & Merchants State B a n k Mitchell- Commercial T r u s t & Savings B a n k Newell—Reclamation State B a n k Sioux F a l l s Commercial & Savings B a n k Sionx Falls Savings Bank S o u t h Shore—South Shore B a n k Stratford—First State B a n k T i m b e r Lake—Stock Growers S t a t e B a n k Webster—Security B a n k & T r u s t Co $25,00C 25,00C 5,00C 10, OOf 10,00C 5,00C 10,000 2,00C $1,386,611 3,228,105 711,737 885,993 774,138 357,789 1,353,187 301,343 32,000 3,500 1,000 5,000 25,000 1,578,355 6.332,140 286,779474,122 340,537 1,811,57'L 50,000 25,000 30,000 50,000 42,000 50,000 100,000 35,000 30,000 30,000 7,500 5,000 5,300 15,000 600 3,000 35,000 15,000 7,500 6,000 724,155 297,162 451,593 1,119,911 375,792 685,918 1,622,173 835,811 557,940 551,585 8,033,422 2,360,160 104,794,215 500,000 500,000 25,000 193,500 500,000 5,000 7,669,261 13,421,652 453,437 25,000 30,000 100,000 100,000 50,000 200,000 1,500 17,000 32,000 50,000 17,000 55,200 174,605 302,644 1,692,413 1,162,173 515,068 2,444,872 200,000 200,000 1 100,000 i 50,000 20,000 50,000 2,115,997 1,786,824 1,846,893 $75,000 150,000 25,000 50,000 i 25,000 25,000 100,000 25,000 I 500,000 300,000 25,000 30,000 25,000 60,000 | ! i | WISCONSIN. Arcadia—'Bank of Arcadia Balsam Lake—Polk County Bank. Boyceville—Bank of Boyceville Ellsworth—Bank of EllsworthGlenwood 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. DISTRICT NO. 10. COLORADO. DenverAmerican Bank & Trust Co International Trust Co Fort Lupton—Fort Lupton State Bank. KANSAS. Anthony—Home State Bank Fairview—Fairview State Bank Fort Scott—Fort Scott State Bank Hiawatha—Morrill & Janes Bank Liberal—The Citizens State Bank Topeka—Kansas Reserve State Bank WichitaSouthwest State Bank The State Savings & Mercantile Bank. Winfield—State Bank of Winfleld MISSOUEI. Joplin—Conqueror Trust Co Kansas City— Commerce Trust Co Live Stock State Bank Savannah—The Wells-Hine Trust Co South St. Joseph—St. Joseph Stock Yards Bank.. 150,000 75,000 2,380,562 1,000,000 200,000 100,000 250,000 1,000,000 37,500 3,000 100,000 41, 465,657 2,148,802 688,938 4,894,006 30,000 35,000 25,000 50,000 50,000 80,000 25,000 25,000 50,000 100,000 25,000 25,000 35,000 85,000 25,000 100,000 50,000 30,000 6,000 7,000 25,000 10,000 15,000 20,000 1,250 5,100 1,713 288,296 534,538 665,833 780,807 455,910 1,009,447 231,008 299,747 381,007 956,576 258,890 567,355 520,161 747,597 257,139 1,348,161 1,182,246 '350,800 NEBRASKA. Allen—Farmers State B a n k Broken Bow—Ouster State B a n k Chappell—Chappell S t a t e B a n k Cozad—Farmers State B a n k D a v i d City—Butler County S t a t e B a n k . Elgin—Elgin State B a n k Genoa—Farmers State B a n k Kilgore—Kilgore State B a n k Lewellen—Bank of Lewellen Lincoln—American State B a n k Neligh—Security State B a n k N o r t h Bend—First State B a n k Ord—Nebraska State B a n k P e n d e r — P e n d e r State B a n k St. E d w a r d — F a r m e r s State B a n k Sidney—American B a n k Wayne—State B a n k of W a y n e Western—Saline County B a n k 5,000 15,000 12,000 19,000 1,250 25,000 15,000 30,000 254 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Capital. Surplus. Total resources. DISTRICT NO. 10—Continued. NEW MEXICO. Aztec—The Citizens Bank Santa Fe—Capital City Bank $40,000 50,000 $10,000 10,000 $267,895 378,877 50,000 50.000 30,000 25,000 25,000 200,000 200,000 60,000 300,000 6,000 5,500 3,000 2,500 8,500 50,000 20,000 6,000 15,000 739,919 698,095 449,902 190,244 230,098 5,171,057 2,619,633 301,305 2,538,794 OKLAHOMA.. Chelsea—Bank of Chelsea Clinton—The First State Bank Cordell—Cordell State Bank Goltry—Bank of Goltry Locust Grove—First State Bank Oklahoma City—Tradesmens State Bank Okmulgee—Guaranty State Bank Pawhuska—Stockgrowers State Bank Ponca City—Security State Bank WYOMING. 100,000 20,000 517,969 2,576,513 110,103,110 33,000 30,000 40,000 10,000 740,902 349,745 250,000 300,000 62,500 50,000 2,119,517 3,988,581 100,000 30,000 30,000 25,000 25,000 50,000 5,000 50,000 10,000 5,000 935,369 162;287 310,690 229,02& 263,769 Fort Towson—First State Bank Valliant—Farmers State Guaranty Bank- 50,000 50,000 15,000 21,000 560,935 674,792 Alpine—Alpine State Bank Alto—Alto State Bank Anson—Anson State Bank A very—A very State Bank Ballinger—Ballinger State Bank <fe Trust Co.... Beaumont— Guaranty Bank & Trust Co Texas Bank & Trust Co Beeville—Beeville Bank & Trust Co Bomarton—First State Bank 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 B a n k . . . 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 Dallas—Central State Bank DeKalb—First State Bank Denison—Denison Bank & Trust Co Denton—First Guaranty State Bank Edgewood—Farmers & Merchants State Bank. El Paso—El Paso Bank & Trust Co Ferris—Farmers & Merchants State Bank Flatonia—Flatonia State Bank Franklin—First State Bank t—The Citizens State Bank 30,000 25,000 35,000 25,000 60,000 35,000 10,000 11,000 5,000 10,000 385,721 244,809 788,780 173,088 343,769 100,000 250,000 50,000 25,000 20,000 127,500 27,000 2,500 1,891,960 3,394,636 427,832 418,637 100,000 200,000 50,000 25,000 32,000 50,000 25,000 30,000 25,000 100,000 30,000 100,000 500,000 50,000 160,000 50,000 35,000 200,000 50,000 50,000 30,000 25,000 50,000 100,000 11,000 25,000 1,000 40,000 7,000 3,000 5,000 20,000 23,000 42,000 131,000 25,000 42,500 5,000 5,500 10,000 12,000 1,502,051 1,450,642 399,188 386,804 343,286 1,247,962 369,346 254,541 329,899 1,233,188 497,926 703,181 5,657,809 586,076 3,328,644 437,344 244,311 2,484,798 301,494 485,235 367,323 321,543 Cheyenne—Cheyenne State Bank 5,705,000 Total DISTRICT NO. 11. Sarlord—Bank of Safford Tombstone—Cochise County State Bank. Monroe—Central Savings Bank & Trust Co. Shreveport—Continental Bank & Trust Co. NEW MEXICO. Albuquerque—American Trust & Savings Bank. Corona—Stockmen's State Bank Lovington—First Territorial Bank MQuntainair—Mountainair State Bank Portales—Security State Bank OKLAHOMA. 10,000 50,000 EXHIBIT I 255 STATE BANK MEMBERSHIP. Capital. Surplus .5 Total resources. DISTRICT NO. 11—Continued. TEXAS—continued. Galveston—South Texas State Bank Gatesville—Guaranty State Bank & Trust Co Gilmer—Gilmer State Bank Goldthwaite—Trent State Bank Gonzales—-Gonzales State Bank & Trust Co Graford—First State Bank Grand PrairieFirst State Bank Guaranty State Bank Hamlin—First State Bank Henderson—First State Bank Hereford—First State Bank & Trust Co Hillsboro—First State Bank Italy—Farmers State Bank JacksonvilleFarmers 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 Loraine—First 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 Pampa—Gray County State Bank Paris— First State Bank Lamar State Bank & Trust Co Pecos—Pecos Valley State Bank Post City—First State Bank Quanah—First Guaranty State Bank RailsFirst State Bank Guaranty State Bank & Trust Co Reagan—First State Bank Richardson—Citizens State Bank Rockwall—Guaranty State Bank Royse—First State Bank Rusk—Farmers & Merchants State Bank Sabinal—First State Bank San Augustine—Commercial Guaranty State Bank. Santa Anna—First State Bank Savoy—First State Bank Seymour—First Guaranty State Bank Shamrock—Farmers & Merchants State Bank Sinton—Bank of Commerce Snyder—First State Bank & Trust Co Spearman—Guaranty State Bank Stamford—First State Bank Sweetwater—Texas Bank & Trust Co Terrell—First State Bank Tioga—First Guaranty State Bank Trenton—Guaranty State Bank Troup—Guaranty State Bank TylerGuaranty State Bank Peoples Guaranty State Bank Valley View—First Guaranty State Bank Weatherford—First State Bank. Wellington—Wellington State Bank Wharton—Security Bank & Trust (Co.. White Deer—First State Bank. Winnsboro—Merchants & Planters State Bank. Wolfe City—First State Bank Wylie—First State Bank Total. $150,000 50,000 50,000 50,000 75,000 50,000 $30,000 8,000 13,500 25,000 25,000 10,000 $3,389,578 490,268 310,852 886,400 572,291 291,712 40,000 25,000 40,000 25,000 50,000 150,000 50,000 20,200 10,000 15,000 50,000 15,000 15,000 298,553 108,675 538,438 242,842 662,670 720,110 550,364 50,000 62,500 50,000 50,000 25,000 25,000 25,000 30,000 50,000 25,000 30,000 25,000 12,000 15,625 60,000 30,000 8,000 15,000 12,500 20,000 7,500 10,000 15,000 700 334,182 531,726 827,847 419,627 487,451 508,142 581,278 685,052 480,014 582,506 475,010 527,795 100,000 100,000 75,000 25,000 60,000 100,000 25,000 50,000 25,000 25,000 25,000 37,500 10,000 20,000 25,000 25,000 50,000 15,000 1,338,715 587,162 1,058,633 162,059 812,247 1,557,644 223,707 695,147 225,308 293,769 150,000 150,000 110,000 25,000 100,000 75,000 25,000 32,000 300 50,000 1,963,398 3,522,750 674,426 190,767 1.266,356 25,000 60,000 25,000 35,000 35,000 50,000 25,000 30,000 50,000 35,000 25,000 35,000 50,000 25,000 50,000 25,000 55,000 100,000 100,000 30,000 25,000 25,000 2,500 1,000 10,000 500 2,500 25,000 17,500 30,000 3,000 13,000 6,500 3,150 50,000 12,500 25,000 3,000 15,000 75,000 65,000 10,000 6,500 20,000 257,670 594,100 169,984 272,762 848,216 258,660 444,762 367,103 315,183 425,533 229,858 171,956 539,924 381,407 382,422 74,723 1,125,468 767,655 1,514,824 282,080 151,665 318,125 200,000 100,000 25,000 125,000 50,000 50,000 25,000 30,000 50,000 50,000 60,000 30,000 10,000 17,000 40,000 7,000 500 30,000 25,000 25,000 1,406,428 916,928 ' 163,792 1,728,190 904,831 453,469 570,569 803,298 659,692 401,380 7,432,500 2,658,475 89,315,563 * 256 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Capital. Surplus. Total resources. DISTRICT NO. 12. Buckeye—Buckeye Valley Bank. Phoenix—The Valley Bank $25,000 500,000 $3,500 100J 000 $170,881 6,456,256 236,300 25,000 50,000 125,000 25,000 4,228,830 346,183 67,042 1,500,000 1,500.000 l.SOOJOOO 25,000 53,000 75,000 25,000 25,000 1,000,000 1,725,000 1,100,000 10,000 71,000 29,500 3,000 28,216,489 36,001,546 62,634,439 407,185 1,391,659 812,899 27,500 172,009 1,500,000 6,000,000 1,000,000 1,000,000 1,000,000 1,500,000 632,500 700,000 1,500,000 250,000 142,500 2,300,000 1,625,000 175,000 24,428,237 131,862,820 14,836,458 11,404,786 63,118,056 47,132,254 7,376,160 140,000 114,500 50,000 640,000 61,000 17,700 7,000 220,000 2,301,621 1,577,811 615,839 6,411,752 CALIFORNIA. Alameda—Alameda Savings B a n k T Cedarville—Surprise Valley B a n k Fullerton—Standard B a n k of Orange County Los Angeles— 'Guaranty T r u s t & Savings B a n k ILos Angeles T r u s t & Savings B a n k Security T r u s t & Savings B a n k Norwalk—Bank of Norwalk Placerville—The A. Mierson Banking Co S t . Helena—Bank of St. Helena S a n Bruno—California B a n k of San Mateo County S a n Fernando—The San F e r n a n d o Valley Savings B a n k . S a n Francisco^Anglo-California T r u s t Co B a n k of Italy French American Ba,nk of Savings I t a l i a n American B a n k T h e San Francisco Savings & Loan Society Savings Union B a n k & Trust Co S a n t a Barbara—Commerical Trust & Savings B a n k Santa MonicaB a n k of Santa Monica Ocean P a r k B a n k Sausalito—Bank of Sausalito Stockton—Farmers & Merchants B a n k Arco—Butte County B a n k Ashton—Security State B a n k Bellevue—Bellevie State B a n k Blackfoot—Blackfoot City B a n k Cambridge—Peoples B a n k Drummond—First State B a n k Eagle—Bank of Eagle E m m e t t — B a n k of E m m e t t Filer—Farmers & Merchants B a n k Genesee—Genesee Exchange B a n k Gooding—Citizens State B a n k Grangeville—Bank of Camas Prairie Idaho F a l l s Anderson Bros. B a n k Farmers & Merchants B a n k Kimberly—Bank of Kimberly K a y — U n i o n Central B a n k Menan—Jefferson State B a n k Meridian—Meridian State B a n k Murtaugh—Bank of Murtaugh Nezperce—Union State B a n k . Oakley—Farmers Commercial & Savings B a n k . Orofino—Bank of Orofino Picabo—Picabo State B a n k Pocatello— Citizens B a n k ' Stockgrowers B a n k & T r u s t Co Potlatch—Potlatch State Bank Rexburg—Farmers & Merchants B a n k S t . Anthony—St. A n t h o n y B a n k & T r u s t C o . . . Star—The Farmers B a n k Sugar City—Freemont County B a n k Sweet—Farmers & Stockgrowers B a n k T e t o n City—First State B a n k T w i n Falls—Twin Falls B a n k & Trust Co Victor—Victor State B a n k Astoria—Scandinavian American B a n k . Enterprise—Enterprise State B a n k H o o d River—Butler B a n k i n g Co Joseph—First B a n k of Joseph Marshfield— B a n k of Southwestern Oregon Scandinavian American B a n k 25,000 50,000 30,000 50,000 40,000 25,000 25,000 60,000 25,000 25,000 25,000 50,000 15, 000 8, 000 10, 000 4, 000 1,250 15,000 12,500 12,500 50,000 28,750 625,980 322,011 627,356 434,909 86,872 248,625 921,913 240,386 824,643 509,196 927,076 100,000 150,000 35,000 30,000 25,000 25,000 25,000 50,000 25,000 25,000 25,000 100,000 15,000 11,000 1,700 100,000 155,500 50,000 50,000 30,000 25,000 25,000 25,000 30, 000 100,000 25,000 20,000 14,000 10,000 10,000 24,000 5,000 4,000 350 50,000 2,500 1,612,815 2,094,324 873,663 466,232 733,526 278,192 312,693 174,271 114,405 2,719,395 210,068 100,000 50,000 100,000 50,000 15,000 15,000 20,000 10,500 1,942,311 630,878 1,399,617 435,255 100.000 25,000 12,500 5,000 1,077,747 334,292 2,500 10,000 10,000 5,000 2,500 2,767,315 2,194,794 490,218 134,255 157,894 238,648 153,133 413,681 304,076 430,272 209,140 257 EXHIBIT I—STATE BANK MEMBERSHIP. Capital. Surplus. Total resources. DISTRICT NO. 12—Continued. OREGON—continued. Moro—Farmers State Bank North Portland—Live Stock State Bank Oregon City—Bank of Oregon City Pendleton—The Inland Empire Bank Portland— Hibernia Savings Bank Ladd & Tilton Bank Tillamook—Tillamook County Bank $25,000 100,000 100,000 250,000 $3,900 25,000 50,000 $352,133 2,370,276 1,817,366 946,203 200,000 1.000,000 40,000 100,000 1,000,000 10,000 5,051,535 30,100,367 673,554 50,000 15,000 729,233 75,000 50,000 25,000 25,000 50,000 50,000 65,000 2,500 6,000 2,500 25,000 70,000 710,865 262,614 423,606 225,941 524,059 478,435 100,000 100,000 150,000 25,000 25,000 25,000 150,000 50,000 23,000 17,500 50,000 3,000 2,500 10,000 150,000 25,000 1,168,529 573,082 1,869,328 171,126 101,779 275,665 1,946,656 896,118 89,569 50,000 6,671 60,000 314,888 879,818 100,000 300,000 5,000 25,000 1,128,731 2,659,286 50,000 45,000 40,000 45,000 1,003,592 786,450 500,000 600,000 222,600 300,000 500,000 50,000 60,000 300,000 120,000 103,500 25,329 100,000 10,000 15,000 6,133,613 14,330,453 733,062 2,113,206 13,178,239 387,987 625,200 25,000 6,000 182,639 50,000 25,000 100,000 150,000 50,000 50,000 10,000 6,000 10,000 100,000 15,000 50,000 589,513 294,864 618,683 2,480,069 591,889 1,684,726 25,000 30,000 25,000 100,000 6,250 10,000 5,000 15,500 486,240 686,502 371,978 1,252,625 60,000 30,000 25,000 25,000 75,000 37,500 50,000 30,000 6,045 5,000 3,000 25*000 10,000 20,000 801,351 208,737 329,286 412,457 946,951 714,487 732,602 25,000 25,000 25,000 25,000 5,000 2,500 5,000 4,000 684,907 94,138 500,893 412,637 400,000 200,000 200,000 1,000,000 100,000 100,000 50,000 100,000 500,000 70,000 8,158,744 800,124 4,781,785 22,839,881 2,071,342 UTAH. Brigham City—Security Savings Bank Cedar C i t y Bank of Southern Utah Iron Commercial & Savings Bank Delta—Delta State Bank Duchesne—Bank of Duchesne Helper—Helper State Bank Kaysville—Barnes Banking Co LoganCache Valley Banking Co Farmers & Merchants Savings Bank Thatcher Bros. Banking Co Magna-Magna Banking Co Monticello—Monticello State Bank Myton—The Myton State Bank Ogden—Ogden Savings Bank Payson—Pay son Exchange Savings Banks Price— Carbon County Bank Price Commercial & Savings Bank Provo— Farmers & Merchants Bank Knight Trust & Savings Bank Richfield— James M. Peterson Bank State Bank of Sevier Salt Lake City— Deseret Savings Bank McCornick & Co., Bankers Tracy Loan & Trust Co Utah Savings & Trust Co Walker Bros., Bankers Spanish Fork—Commercial Bank Vernal—Bank of Vernal WASHINGTON". Albion—Albion State Bank Almira— Almira State Bank Farmers State Bank Centralia—Centralia State Bank Chehalis—Ooffman Dobson Bank & Trust Co. Colfax—First Savings & Trust Bank of Whitman County Ellensburg—The Farmers Bank -•. Enumclaw— Peoples State Bank State Bank of Enumclaw Farmington—Bank of Farmington Hoquiam—Lumbermans Bank Lacrosse— First State Bank Security State Bank Molson—Molson State Bank Odessa—Farmers & Merchants Bank Port Townsend—Merchants Bank Pullman—Pullman State Bank Reardan—Farmers State Bank Renton— The Citizens Bank of Renton Renton State Bank Rosalia—Bank of Rosalia St. John—Farmers State Bank SeattleDexter Horton Trust & Savings Bank The Marine Bank Metropolitan Bank Scandinavian American Bank South Bellingham— Northwestern State Bank 258 ANNUAL REPORT OP THE FEDERAL RESERVE BOARD. Capital. Surplus. Total resources. DISTRICT NO. 12—Continued. WASHINGTON—continued. Spokane— Spokane & Eastern Trust Co The Washington Trust Co Stanwood— Bank of Stanwood Citizens State Bank Tekoa— Citizens State Bank Tekoa State Bank Toppenish— Central Bank of Toppenish Traders Bank Walla Walla—Farmers Savings Bank Wilbur—The State Bank of Wilbur Yakima—Yakima Valley Bank Total SI, 000,000 200,000 $200,000 40,000 $15,218,957 1,196,810 25,000 25,000 10,000 2,500 691,943 105,720 25,000 30,000 12,000 15,000 582,481 539,605 50,000 25,000 200,000 50,000 100,000 20,000 10,000 40,000 10,000 23,000 662,174 858,787 2,254,332 729,059 2,364,388 31,596,469 15,757,195 655,576,800 Statement showing membership of State banks and trust companies in the Federal Reserve System up to and including Dec. 31, 1919, 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 York 3—Philadelphia... 4—Cleveland 5—Richmond 6—Atlanta 7—Chicago 8—St. Louis 9—Minneapolis 10—Kansas City.. 11—Dallas 12—San Francisco Total Number of banks. Capital. Surplus. 122 38 97 46 64 326 68 86 47 114 137 $30,475,000 138,803,200 23,225,000 36,152,425 11,592,750 21,216,000 83,022,000 24,400,000 8,033,422 5,705,000 7,432,500 31,596,469 $33,758,000 168,184,861 47,102,000 63,597,560 7,387,090 13,363,245 71,011,363 19,797,141 2,360,160 2,576,513 2,658,475 15,757,195 1,181 421,653,766 447,553,603 36 Total resources. $692,319,838 4,207,562,560 359,317,169 782,901,856 163,570,888 367,145,101 1,683,694,386 392,409,088 104,794,215 110,103,110 89,315,563 655,576,800 9,608,710,574 259 EXHIBIT I—STATE BANK MEMBERSHIP. Abstract of condition reports of State bank and trust company members of the Federal Reserve system as of Dec. 31,1918, Mar. 4, June 30, Nov. 17 and Dec. 31,1919. [In thousands of dollars.] Dec. 31, 1918— 930 banks. Nov. 17, Dec. 31. Mar. 4, June 30, 1919— 1919— 1919— 1919— 969 banks. 1,042 banks. 1,135 banks. 1,181 banks. RESOURCES. Loans and discounts Overdrafts. . . Customers' liability under letters of credit. Customers' liability account of acceptances. Liberty bonds (exclusive of Liberty bonds borrowed). . . . . . Other United States bonds (exclusive of United States bonds borrowed) United States Victorv notes United States certificates of indebtedness.. War savings and thrift stamps actually owned. Stock of Federal Reserve Bank Other bonds, stocks, etc. (exclusive of securities borrowed) Banking h o u s e . . . . Furniture and fixtures.. . . . Other real estate owned Lawful reserve with Federal Reserve Bank. Items with Federal Reserve Bank in process of collection. Due from banks and bankers Gold coin and certificates All other cash in vault Exchanges for clearing house, also checks on banks in same place Outside checks and other rash items Approximate interest earned but not collected < )ther assets Total 3 630 678 3,383 12,959 168,713 3,731,973 3,120 8,352 168,964 4 318,722 3,944 11,768 179,925 5,046,940 5,827 1,193 196,090 5,249,833 5,362 1,016 231,019 375,045 311,424 293,548 329,800 335,752 3, 883 6;547 321,977 819,012 15,897 191,633 360,286 5,954 150,909 293,217 9,851 131,057 307,026 1,714 22,545 1,145 22,983 975 23,661 1,254 25,384 1,327 25,850 1,097,597 105 050 7,401 22 046 474,579 1,132,795 106,510 7,860 23 084 4&3,426 1,131,988 115,219 9,263 22,937 514,805 1,268,888 129,154 10,624 25,119 562,813 1,300,952 132,434 11,164 25,748 591,702 61,498 543,316 ?0,4?8 133,592 64,106 497,151 17,091 111,582 82,197 545,838 18,955 116,780 l?l,010 610,039 18,002 135,679 122,640 676,704 17,692 165,756 307,918 35,395 181,024 22,230 364,918 36'. 152 374,116 56,561 146,317 64,653 17,170 115,226 16 ?85 64,397 21,169 72,002 20,635 35,105 24,257 35,595 7,482,113 7,801,061 8,452,582 9,424,313 9,913,707 350,110 409,680 360,468 415,006 371,979 420,934 412,869 441,264 436,244 454,930 93,315 99,991 110,351 135,458 115,321 8,111 15,007 9', 156 1,109 628,139 8,753 18,570 12,241 2,606 606,0:9 11,191 19,569 10,512 964 676,852 13,660 18,694 20,865 2,167 722,618 15,809 15,681 10,592 1,324 755,303 3,851,970 1,361,020 160,464 342,009 137,844 3,717,482 1*440,371 295,228 461,768 222,423 4,09?,481 1,558,940 337,432 376,995 276,343 4 592,270 1,996,405 117,977 395,417 303,064 4 834,830 2,165,786 201,710 309,197 18,963 8,624 9,852 15,504 14 311 16,335 175,523 41,202 7,588 182,093 26,400 7,8?4 194,551 29,73? 7,121 206,567 49,114 8,087 233,379 38,139 7,482,113 7,801,061 8,452,582 9,424,313 9,913,707 228,044 138 854 175 934 270 334 326 289 11.0 11.0 10.8 10.4 10.4 LIABILITIES. Capital stock paid in Surplus fund Undivided profits, less expenses and taxes paid Approximate interest and discount collected but not earned , ... . Amount reserved for taxes accrued Amount reserved for interest accrued Due to Federal Reserve B a n k . . . Due to banks and bankers Certified and cashiers' or treasurers' checks outstanding.... .... Demand deposits Time deposits United States deposits. . Bills payable with Federal Reserve Bank.. Bills payable other than with Federal Reserve Bank Cash letters of credit and travelers' checks outstanding. Acceptances Other liabilities Total Liability for rediscounts, including: those with Federal Reserve Bank Ratio of reserve with Federal Reserve Bank to net deposit liability (per cent) 1 1 Includes certified and cashiers' or treasurers' checks outstanding. 260 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Exhibit J.—FOREIGN BRANCHES AUTHORIZED. The Federal Reserve Board, during the year 1919, authorized the establishment of foreign branches and subbranches of national banks as follows: National City Bank, New York, N. Y.: Spain— Madrid Subbranch—Barcelona Cuba— Subbranches—Santa Clara, Ciego de Avila, Caibarien, and Sancti Spiritus Subbranches—Havana (2), Union del Reyes, Pinar del Rio, Colon, Bayamo, Remedios, Placetas, Neuvitas, Cruces, Artemisa, and Yaguajay Argentina— Subbranches—Rosario and Buenos Aires (2) Brazil— Subbranches—Porto Alegre and Rio Grande do Sul Australia— Sydney Subbranch—Melbourne British South Africa— Cape Town Subbranches—Durban, Port Elizabeth, and Johannesburg. Venezuela— Subbranch—Ciudad Bolivar TrinidadPort of Spain Jamaica— Kingston Dutch West Indies— Island of Curacao EgyptAlexandria Colombia— Bogota Subbranches—Medellin, Antioquia, Cartagena, Barranquilla, and Buenaventura Uruguay— Subbranch—Montevideo Exhibit K.—FIDUCIARY POWERS GRANTED BANKS. TO Date authorized. Jan. 15,1919 Jan. 15,1919 Jan. 24,1919 Mar. 17,1919 Jan. 29,1919 Jan. 29,1919 Mar. 12,1919 Mar. 12,1919 Mar. 12,1919 Mar. 12,1919 Mar. 12,1919 Mar. 12,1919 Mar. 12,1919 Mar. 12,1919 Mar. 17,1919 June 4,1919 June 4,1919 June 10,1919 NATIONAL The following is a complete list of national banks which have been granted fiduciaiy powers to December 31, 1919. For a description of the powers granted see footnotes on page 269. The Federal Reserve Act, as amended September 26, 1918, after naming certain powers which may be granted to national banks, when not in contravention of State or local law, authorizes the Federal Reserve Board under such circumstances to grant permission to act 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 located. Where this general power has been granted in addition to certain specific powers, the footnote describing the powers is followed by an asterisk. EXHIBIT K—FIDUCIARY POWERS GRANTED. DISTRICT NO. 1—Continued. DISTRICT NO. 1. MASSACHUSETTS—continued, CONNECTICUT. (See also District No. 2.) Ansonia Bristol Hartford Middletown Naugatuck New Britain New Haven New London Torrington Wallingford Waterbury 1 Ansonia National Bank. Bristol National Bank. 2 First National Bank.* 1 Phoenix National Bank. Middletown National Bank. 3 Naugatuek National Bank. 3 1 New Britain National2 Bank. First National Bank. Merchants National Bank. 2 3 National Tradesmens Bank. Second National Bank. 1 Yale National Bank. 3 National Bank of Commerce.25 New London City National Bank. 9 Torrineton National 1Bank.10 First National Bank. Citizens National Bank.11 1 ManufacturerfNational Bank. Waterbnry National Bank. 1 MAINE. Bangor Bar Harbor Bath Belfast Lewiston Norway Portland First National Bank.12 First National Bank.5 Bath National Bank. 2 City National Bank.* M a n u f a c t u r e r s ISiational Bank " 2 Norway National Bank. 1 Canal National Bank. First National Bank.1* 12 Portland National Bank. Plymouth Provincetown Reading Salem Southbridge Springfield Tisbury Turner Falls Wareham Watertown Webster Worcester Woburn Uxbridge Dover Keene Manchester Nashua Arnherst Beverly Boston Brockton Edffartown Fall River Fitchburg Foxboro Gardner Gloucester Great Barrington Haverhill Holyoke Lawrence Leominster Lowell Lynn Marlboro Methuen New Bedford Newburyport North Adams Northampton Pittsfield 2 First National Bank. 11 Gra. lock National Bank. First National Bank.1 Beverly National Bank.* Boylston National Bank. 1 First National Bank.11 Fourth-xVtlantic National Bank. 1 Merchants National Bank. 1 National Shawmut Bank.-' National Union Bank.3 3 Peoples National Bank.1 Second National Bank. Webster1 & Atlas National Bank. Brockton National Bank.i Home National Bank. 3 Edgartown National Bank. 4 Massasoit Pocasset National Bank. 1 Metacomet National Bank. 1 1 Safety Fund National Bank. 1 Foxboro National Bank. First National Bank. 1 Cape Ann National Bank.i National Mahaiwe Bank. 1 Essex National Bank." First National Bank.3 Merrimack National 3 Bank.3 City National Bank. Holyoke National Bank.;! 1 Bay State National Bank. 3 Leominster National Bank. Merchants National Bank."*6 Old Lowell National Bank. Central National Bank.2 1 ManufacturersNationalBank. National City Bank.133 First National Bank. Peoples National Bank of Marlborough.1 2 National Bank of Methuen. First National Bank. 1 Merchants National Bank.i2 Merchants National Bank. North Adams National Bank.11 Northampton National Bank.2 Agricultural National Bank. Pittsfield National Bank.3 Plymouth National Bank. 3 First National Bank.i3 First National Bank. Merchants National Bank.i Southbridge National Bank.i Chapin National Bank. 1 Chicopee National Bank.i 2 Springfield National Bank. Martha's Vinevard National Bank.2 Crocker National Bank. n National Bank of Wareham. 3 Union Market National Bank.* First National Bank. 3 Mechanics National Bank. 31 Merchants National Bank.3 Worcester National Bank. Woburn National Bank.14 Blackstone National Bank.* NEW HAMPSHIRE. Berlin Claremont Concord MASSACHUSETTS. Adams 261 Newport Wolfeboro City National Bank.6 Claremont National Bank. 3 First National Bank. 1 Mechanics National Bank. 15 National15 State Capital Bank. Merchants National Bank.34 Strafford National Bank. 15 Ashuelot National Bank. Keene National Bank. 3 Amoskeag National Bank. 156 Manchester National Bank.15 Merchants National Bank. Indian 4 Head National Bank. Second National Bank. 1515 Citizens National Bank. 15 Wolfeboro National Bank. RHODE ISLAND. Newport Aqtiidneck National Bank.* VERMONT. Barre Bennington Brattleboro Bellows Falls Brandon Montpelier Poultney St. Albans Springfield Windsor Peoples National Bank. 11 County National Bank. 1 Peoples National Bank. Vermont National Bank. 2 National Bank of Bellows Falls.4 First National Bank. 33 First National Bank. Citizens National Bank. 33 Welden National Bank. First National Bank. 3 State National Bank. 4 DISTRICT NO. 2. CONNECTICUT. (See also district No. 1.) Bridgeport City National Bank.i Connecticut National Bank.i First-Bridgeport Nationa Bank. 1 Danbury City National Bank. 1 1 Danbury National Bank. 1 G reenwich Greenwich National Bank.3 Norwalk National Bank of Norwalk. Ridgefleld First National Bank.3 1 Soufti Norwalk City National Bank. 1 Stamford First National Bank. NEW JERSEY. (See also district No. 3.) Asbury Park Merchants National Bank.i Atlantic Highlands. .Atlantic4 Highlands National Bank. Belvidere Belvidere National Bank. 2 3 Bloomfield .Bloomfield National Bank. 1 Boonton Boonton National Bank. Boundbrook First National Bank. 33 Cranbury First National Bank. 262 ANNUAL REPORT OF THE FEDERAL. RESERVE BOARD. DISTRICT NO. 2—Continued. DISTRICT NO. 2—Continued. NEW JERSEY—continued. Dover Elizabeth Frenchtown Hoboken Jersey City Lambertville Long Branch Morristown Newark New Brunswick Orange Passaic Paterson Perth Amboy Phillipsburg.* Plainfield Red Bank Rutherford Somerville South River Sussex National Union Bank.3 National State Bank." Union National Bank.is First National Bank.3 First National Bank.1 Lambertville National Bank.1 Citizens National Bank.* First National Bank.3 First National Bank.1 National Iron Bank.* Merchants National Bank.3 National Newark & Essex Banking Co.1 National State Bank.1 North Ward National Bank.s National Bank of New Jersey.1 Peoples National Bank.3 Orange National Bank.2 Second National Bank.1 Passaic National Bank.1 First National Bank.™ Paterson National Bank.1 Second National Bank.1 First National Bank.i Phillipsburg National Bank.2 City National Bank.3 Second National Bank.1 Rutherford National Bank.3 Second National Bank.3 First National Bank.1 Farmers National Bank.3 NEW YORK. Albany Amsterdam Auburn Brooklyn Buffalo Canandaigua Canton Carthage Catskill Clayton Cooperstown Corning Cuba Dunkirk Edwards Elmira Far Rockaway Geneva Glens Falls Gloversville Goshen Granville Hempstead Herkimer Hoosick Falls Homell Hudson Ilion Ithaca First National Bank.& National Commercial Bank.2 New York State National Bank.5 First National Bank.1 Cayuga Countv National Bank.a National Bank of Auburn.5 First National Bank.1 Nassau National Bank.1 Manufacturers & Traders National Bank.1 Canandaigua National Bank.1 First National Bank.1 St. Lawrence County National Bank." Carthage National Bank.1 Catskill National Bank.2 National Exchange Bank.5 First National Bank.1 Second National Bank.2 First National Bank.2 Cuba National Bank.1 Lake Shore National Bank.1 Merchants National Bank.i Edwards National Bank.5 Merchants National Bank.™ Second National Bank.1 National Bank of Far Rockaway.5 Geneva National Bank.s Merchants National Bank.2 City National Bank.i Fulton County National Bank.1 National Bank of Orange County.1 Farmers National Bank.5 Washington County National Bank & . F irst N ational B ank. 1 Herkimer National Bank.2 Peoples National Bank.2 Citizens National Bank.i Farmers National Bank.i First National Bank.i Tlion National Bank.i First National Bank.i NEW YORK—continued. Jamestown National Chautauqua County Bank. 2 Round out National Bank.i Little Falls National Bank.1 National Exchange Bank.i Niagara County National Bank.i Middletown Merchants National Bank.1 Mineola First National Bank.& Morristown Frontier National Bank.5 Mount Vernon First National Bank.i New York Citr American Exchange National Bank.i Atlantic National Bank.i Bank of New York NBA.1 Bronx National Bank.5 Chase National Bank.i Chatham & Phenix National.* Chemical National Bank.2 Citizens National Bank.2 Coal & Iron National Bank.* First National Bank.1 Garficld National Bank.i Gotham National Bank.i Hanover National Bank.2 Harriman National Bank.i Irving National Bank.i Liberty National Bank.i Lincoln National Bank.i Mechanics & Metals National Bank.* Merchants National Bank.i National Bank of Commerce.2 National City Bank.i National Park Bank.i Seaboard National Bank.i North Tonawanda... State National Bank.i Norwich Chenan?o National Bank.2 National Bank of Norwich.1 Nyack Nyack National Bank.i Ogdensburg. National Bank of Ogdensburg.2 Oneida Oneida Valley National Bank.i Oneonta Citizens National Bank.i Wilber National Bank.i Ovid First National Bank.0 Peekskill Peekskill National Bank.i Westchester County Nation Bank.i Plattsburg City National Bank.s Plattsburg National Bank.1 Port Chester First National.1 Port Jervis First National Bank.i National Bank of Port Jervis.* Poughkeepsie Fallkill National Bank.i Farmers & Manufacturers National Bank.i Richfield Springs First National Bank.* Riverhead Suffolk County National Bank.5 Rochester Lincoln National Bank.* Rome Farmers National Bank.i Saratoga Springs First National Bank.* Southampton First National Bank.2 Stapleton Richmond Borough National Bank.& Tarrytown Tarrytown National Bank.7 Troy Union National Bank.i Utica Oneida National Bank.i Utica City National Bank.i Vernon National Bank of Vernon.« Walton First National Bank.i Watertown Jefferson County National Bank.i Watertown National Bank.4 Westfield National Bank of Westfield.5 Kingston Little Falls Lockport DISTRICT NO. 3. DELAWARE. Frederica Laurel Milford Seaford First National Bank.s Peoples National Bank.2 First National Bank.i First National Bank.' EXHIBIT K—FIDUCIARY POWERS GRANTED. DISTRICT NO. 2—Continued. DISTRICT NO. 2-Continued. NEW JERSEY. (See also district No. 2.) Atlantic Citv Union National Bank.4 A tlantfr Citv National Bank.' 1 Burlington Mechanics National Bank. Camden National State Bank.1 Cape May Merchants National Bank.s Elmer First National Bank.1 Haddonfield Haddonfield National Bank.1 Princeton First National Bank.3 Salem Salem National Banking Co.1 Swedesboro Swedesboro National Bank.1 Trenton Broad Street National Bank.3 First National Bank.1 Mechanics National Bank.1 1 Ventnor City Ventnor City National1 Bank. Woodbury First National Bank. PENNSYLVANIA. (See also district No. 4.) Allentown Allentown National Bank.1 Merchants National Bank.2 Annville Annville National Bank.3 Atglen Atglen National Bank.* Belleville Belleville National Bank.* Bethlehem Bethlehem National Bank.1 Lehigh Valley National Bank.2 Bloomsburg Bloomsburg National Bank.1 Blossburg Miners National Bank.s Boyertown National Bank of Boyertown.s Catasauqua National Bank of Catasauqua.1 Clearfield Clearfield National Bank.i County National Bank.1 Danville First National Bank. * 1 DuBois Deposit National Bank. DuBois National Bank.3 1 Emaus Emaus National Bank. Emporium First National Bank.1 Ephrata Farmers National Bank.* Greencastle First National Bank.1 Harrisburg Merchants National Bank, a Hazleton Hazleton National Bank, a Huntingdon First National Bank.1 2 Union National Bank. Jenkintown Jenkintown National2 Bank.4 Johnstown First National Bank. 4 Lancaster Conestoga National Bank. Fulton National Bank.1 Lansdale First National Bank.3 Lititz Farmers National Bank.' Mahanoy City Union National Bank.2 1 Manheim Keystone National Bank. Marietta Exchange National Bank.a Maytown Maytown National Bank.3 Mount Carmel Union National Bank.1 Mountville Mountville National Bank.3 Myerstown Myerstown National Bank.3 Nanticoke First National Bank.3 1 Nazareth Nazareth National Bank. Newville First National Bank.3 1 Oxford National Bank of Oxford. Patton First National Bank.s Pen Argyle First National Bank.s Philadelphia CornExchangeNationalBank.1 Eighth National Bank.3 Fourth Street National Bank.* National Bank of Germantown.2 Ninth National Bank.11 Penn National Bank. Philadelphia National Bank.1 Quaker City National Bank.s Southwark National Bank.3 Textile National Bank.1 Union National Bank.2 1 Philipsburg Moshanan National Bank. Pittston First National Bank.1 1 Pottstown National Bank of Pottstown. National Iron Bank.1 1 Reading Reading National Bank. Penn National Bank.3 1 Red Lion Red Lion National Bank. Scranton Third National Bank.1 Spring City National Bank of SpringCity.1 263 PENNSYLVANIA—continued. Stroudsburg Sunbury Tamaqua Tioga Topton West Chester First National Bank.3 First National Bank.1 Tamaqua National Bank.1 Grange National Bank.s National Bank of Topton.3 First National Bank.1 National 1Bank of Chester County. West Grove National Bank ofWestGrove.3 Wilkes-Barre Second National Bank.1 1 Wyoming National Bank. Williamsport First National Bank.1 West Branch National Bank.'1 Williamsport National1 Bank. Wrightsville First National Bank. York Industrial National Bank of West York.s Western National Bank.1 DISTRICT NO. 4. KENTUCKY. (See also district No. 8.) Brooksville First National Bank.3 Mount Sterling MountSterlingNationalBank.s Newport American National Bank.19 Paris First National Bank.i19 Somerset First National Ban*. Williamsburg First National Bank.3 OHIO. Akron Bellaire Bucyrus Canton Cincinnati Cleveland Columbus Coshocton Dayton Defiance Fostoria Gallon Hamilton Hillsboro Lebanon Mansfield Marietta Massillon Painesville Ravenna Sidney Steubenville Tiffin Toledo Troy Urbana Wilmington Youngstown Zanesville First-Second NationalBank.w National City Bank.20 First National Bank.20 First National Bank.so First National Bank.s Atlas National Bank.20 Citizens National Bank.11 Fifth-Third National Bank.w First National Bank." 1 Second National Bank. ' First National Bank.1* National City Bank.11 Union 11Commerce National Bank. City National Bank.1* Commercial National Bank.s1 Huntington National1 Bank. ' Ohio National Bank. * 2 Commercial National B ank. ° Merchants National Bank.20 Winters National Bank.20 First National Bank.20 20 Merchants National Bank. Union National Bank.11 Citizens National Bank.20 First National Bank.20 Merchants National Bank." Lebanon National Bank.20 Citizens National Bank.o 20 Central National Bank. First National Bank.2" 20 Merchants National Bank. 1 Painesvilte National Bank. * Second National Bank.206 Citizens National Bank. 11 National Exchange Bank. Tiffin National Bank.11 Northern National Bank.s First National Bank.11 Citizens National Bank.6 Clinton County National Bank.20 First National Bank.25 First National Bank. o Old Citizens National Bank.i PENNSYLVANIA. (See also district No. 3.) Ellwood City First National Bank.1 Franklin Iamberton National 1Bank.1 Greensburg First National Bank. Greenville First National Bank.s Grove City First National Bank.6 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. DISTRICT NO. 4—Continued. DISTRICT NO. 5—Continued. VIRGINIA—continued. PENNSYLVANIA—continued. 1 New First National Bank. ** First National Bank. 1 First National Bank.e 1 Oil City National Bank. Bank of Pittsburgh N. A.i Duquesne National Bank. 1 Monongahela National Bank.s National Bank of America.3 Peoples National Bank.& Second National Bank of Allegheny.1 Third National Bank. 11 Union National Bank. 1 Western National Bank. Punxsutawney National Bank. 1 McDowell National Bank.3 Second National Bank. 1 Warren National Bank.11 Citizens National Bank. * , First National Bank. 1 3 Peoples National Bank. Meadville New Castle Oakmont Oil City Pittsburgh Punxsutawney Sharon Titusville Warren Washington Zelienople WEST VIRGINIA. (See also district No. 5.) New Cumberland Wheeling First National National Bank of West Virginia.1 Charlottesville Chatham Clifton Forge Covington Danville Harrisonburg Lexington Martinsville Newport News Norfolk Petersburg Reedville Richmond Roanoke Rocky Mount South Boston Staunton Warrenton Winchester DISTRICT NO. 5. DISTRICT OF COLUMBIA. Washington National Bank of Washington. 3 National Metropolitan Bank.2 MARYLAND. Baltimore Cumberland Frederick Hagerstown Hyattsville New Windsor Rising Sun Rockville Salisbury Merchants-Mechanics First National Bank. 1 Second National Bank. 21 Second National Bank. Farmers & Mechanics National Bank. 3 Second National Bank. 1 First National Bank.3 First National Bank. 3 National Bank of Rising Sun. 3 Montgomery County National Bank. * Salisbury National Bank. 1 NORTH CAROLINA. Charlotte Elizabeth City High Point Goldsboro New Bern Oxford Commercial National Bank. 1 Merchants & 1 Farmers National Bank. First &1 Citizens National Bank. 3 Commercial National Bank. Wayne National Bank. 1 National Bank of New Bern. 3 First National Bank. 3 SOUTH CAROLINA. Charleston Columbia Greenville Lake City Orangeburg Rock HiJl Spartanburg York Atlantic National Bank.31 Peoples National Bank. National1 Loan & Exchange Bank. First National Bank. 1 3 Fourth National Bank. 3 Peoples National Bank. Farmers & Merchants National Bank. 3 Edisto National Bank.11 National Union Bank. 3 Central National Bank. First National Bank. 3 VIRGINIA. Abingdon Alexandria Appalachia First National Bank. 1 3 Citizens National Bank. First National Bank. 3 First National Bank.e National Bank of Charlottesville.3 1 Peoples National Bank. First National Bank. 4 Clifton Forge National1 Bank. 3 First National Bank. Citizens National Bank. 3 3 Covington National Bank. First National Bank. 3 First National Bank.4 1 Rockbridge National Bank. Peoples National Bank. 3 First National Bank. 3 3 National Bank of Commerce. Seaboard National Bank.4 1 Virginia National Bank Commonwealth N a t i o n al Bank.4 3 American National Bank. First National Bank. 1 Merchants National Bank.31 American National Bank. 1 National Exchange Bank. Peoples National Bank. 3 Planters & Merchants National Bank. 3 1 Augusta National Bank. National Valley Bank. 3 1 Fauquier National Bank. Shenandoah Valley National Bank. 3 WEST VIRGINIA. (See also district No. 4.) Clarksburg Empire National Bank. 3 Union National Bank. 3 1 Fairmont National Bank of Fairmont. Fairview First National Bank.13 Grafton First National Bank. Huntington First National Bank. 1 Madison Madison National Bank. 3 1 Parkersburg Parkers burg National Bank. DISTRICT NO. 6. ALABAMA. Anniston Bessemer Birmingham Cullman Florence Gadsden Mobile Montgomery Piedmont Selma Talladega Tuscaloosa Anniston National Bank.11 First National Bank.3JS 3 Bessemer National Bank. First National Bank. 1 3 Leeth National Bank.2 First National Bank. First National Bank 42 First National Bank. First National Bank. 15 First National Bank.24 City National Bank. Talladega National Bank. 3 City National Bank. 22 First National Bank. FLORIDA. Bradentown First National Bank. 3 DeFuniak Springs...First National Bank. 3 3 Jacksonville Barnett National Bank. 15 Pensacola National Bank of Commerce. 4 St. Petersburg Central National Bank. First National Bank.23 Tampa First National Bank. GEORGIA. Atlanta Fitzgerald La Grange Macon Quitman Winder Lowry National Bank. 3 Exchange National Bank.23 LaGrange National Bank. 3 Fourth National Bank. First National Bank.17 1 Winder National Bank. LOUISIANA. (See also district No. 11.) Alexandria First National Bank. 2 Crowley First National Bank of Acadia Parish .10 Lake Charles Calcasieu National Bank of Southwest Louisiana.21 EXHIBIT K—FIDUCIARY POWERS GRANTED. DISTRICT NO. 7—Continued. DISTRICT NO. 6—Continued. INDIANA—continued. MISSISSIPPI. (See also district No. 8.) Biloxi Canton Laurel Meridian First First First First National National National National 3 Bank. Bank. 31 Bank. Bank. 2 TENNESSEE. (See also district No. 8.) 10 Citizens National Bank. Elk National Bank.22 Manufacturers National Bank.3 City National Bank. 6 17 Peoples National Bank. American National Bank. 13 Broadway National Bank. Cumberland Valley National Bank. 3 Fourth 2 & First National Bank. Tennessee-Hermitage N a tional Bank.a Dickson Fayetteville Harriman Knoxville McMinnville Nashville DISTRICT NO. 7. ILLINOIS. (See also district No. 8.) Old Second National Bank. 1 Second National Bank. 31 Canton National Bank. First National Bank. 3 National Trust Bank. 1 Corn Exchange National Bank. 5 First National Bank of Engle3 wood. National City Bank. 11 First National Bank. 1 First National Bank. Citizens National Bank. 13 Milliken National Bank. 3 National Bank of Decatur. Dixon National Bank. 1 Woodford County National Bank. 1 First National Bank.1 1 First National Bank. 3 First National Bank. Joliet National Bank.3 1 City National Bank. 1 First National Bank. 3 LaSalle National Bank. 1 Union National Bank. First National Bank. 3 4 National Bank of Mattoon. State National Bank.11 First National Bank. First National Bank. 4 Central National Bank. 1 Manufacturers National Bank. 1 3 Rockford National Bank. Third National Bank.2 Aurora Belvidere Canton Casey Charleston Chicago Chillicothe Danville Decatur Dixon El Paso. Freeport Galesburg Joliet Kankakee Kewanee LaSalle Macomb Marseilles Mattoon Monticello Moweaqua Peoria Rockford (See also district No. 8.) Batesville Brazil Brookville Cambridge City Crawfordsville Dana Dublin Dyer First National Bank. 3 10 Citizens National Bank. First National Bank. 3 Riddell National Bank. 3 Franklin3 County National Bank. 3 National Brookville Bank. First National Bank.2 3 Citizens INational Bank. E 1st on National Bank. 2 First National Bank.44 First National Bank. 3 First National Bank. 265 Edinburg Elkhart Fort Wayne Franklin Goshen Greencastle Hammond Indianapolis Kokomo LaPorte Liberty Logansport Marion Michigan City Mishawaka Monrovia Muncie New Carlisle New Castle Richmond Rochester Rockville Rushville Russiaville Sheridan South Bend Thorntown Tipton Valparaiso Wabash Whiteland Wilkinson Winamac Farmers National Bank. 3 1 First National Bank. Old National Bank. 1 Franklin National Bank. 3 City National Bank. 14 First National Bank. First National Bank.* Fletcher-American National Bank.11 Citizens National Bank. 31 Howard National Bank. First National Bank. 3 Union 4 County National Bank. City National Bank. 23 First National Bank. First National Bank. 3 1 Marion National Bank. 1 Merchants National Bank. First National Bank. 33 First National Bank. Delaware County National Bank. 1 3 Merchants National Bank. First National Bank. 4 First National Bank.11 First National Bank. 3 Second National Bank. First National Bank.24 Rockville National Bank. 3 3 Rush County National Bank. 3 Rushville National Bank. First National Bank. 4 2 Farmers National Bank. First National Bank. 3 First National Bank. 3 4 Home National Bank. Citizens National Bank. 33 Farmers National Bank. Farmers & Merchants National Bank. 3 3 Whiteland National Bank. 4 Farmers National Bank. First National Bank. 2 IOWA. Arlington Boone Burlington Cedar Rapids Charter Oak Cherokee Clarence Clinton Coon Rapids Council Bluffs Decorah Des Moines Dubuque Elkader Emmetsburg Everly Fairfleld Fonda Glad brook Greenfield Hawarden Humboldt Independence Indianola Kanawha Le Mars Linn Grove Manchester Marengo Marshalltown Miliord Moniezuma Muscatine Newell New Sharon Odebolt 4 American National Bank. First National Bank. 3 Merchants National Bank. 1 1 Cedar Rapids National Bank. 3 Merchants National Bank. First National Bank.22 First National Bank. 13 First National Bank. City National Bank. 3 2 Merchants National Bank. & First National Bank.34 City National Bank. 1 First National Bank. National Bank of Decorah.33 Des Moines National 1 Bank. First National Bank. First National Bank. 1 Emmetsburg National Bank. 8 First National Bank.10 First National Bank. 23 First National Bank.4 First National Bank.19 First National Bank. 17 First National Bank. First National Bank. 33 First National Bank.4 First National Bank. First National Bank. 4 First National Bank. 41 First National Bank. 3 First National Bank. 3 First National Bank. First National Bank.44 First National Bank. First National Bank.13 First National Bank. 1 First National Bank.10 First National Bank. 3 First National Bank. 266 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. DISTRICT NO,8-Continued. DISTRICT NO. 7—Continued. IOWA—continued. ILLINOIS—continued. 4 Oskaloosa National Bank. First National Bank.33 First National Bank. First National Bank." 4 Citizens National Bank. First National Bank.4 Continental National4 Bank.10 First National Bank. First National Bank.3 1 Citizens National Bank. First National Bank.3 Washington National Bank.83 Commercial National Bank. Leavitt 3& Johnson National Bank. First National Bank.3 3 Farmers National Bank. First National Bank.1 Oskaloosa Peterson Red Oak Rippey Royal Sibley Sioux City Sioux Rapids Stanton Storm Lake Story City Washington Waterloo Waverly Webster City MICHIGAN. (See also district No. 9.) Battle Creek Central National Bank.a Old National Bank.1 First National Bank.8 Farmers & Merchants National Bank.1 Birmingham First National Bank.43 Boyne City First National Bank. 2 Detroit National Bank of Commerce. 3 Flint First National Bank. 1 Grand Rapids Old National Bank. * Hillsdale First National Bank.3 Jackson National Union Bank.13 Lansing Capital National Bank. Petoskey First National Bank.3 Port Huron First National Bank.33 Rochester First National Bank. Saginaw Second National Bank.3 3 St. Claire Heights.. -Michigan National Bank. Traverse City First National Bank.4 Bay City. Bent on Harbor Nashville Nokomis O'Fallon Pittsfield Quincy Sparta Vandalia INDIANA. (See also district No. 7."* Farmersburg Jeffersonville Mitchell Mt. Vernon New Albany Princeton Seymour Tell City KENTUCKY. (See also district No. 4.) Bowling Green Danville Elizabethtown Glasgow Harrodsburg Henderson Hopkinsville Lawrenceburg Lebanon Antigo Appleton Beaver Dam Fond du Lac Hartford Janesville Marinette Monroe Oshkosh Waukesha West B*nd 1 Langlade National Bank.1 ? Citizens National Bank. Old National Bank.3 Commercial National11Bank.1 First National Bank. First National Bank.3 First National Bank.13 First National Bank. City National Bank.3 3 National Exchange Bank. First National Bank.1 DISTRICT NO. 8. Bedford National Bank.7 City National Bank.3 Old State National Bank.1 First National Bank.27 First National Bank.13 First National Bank. First National Bank.3 1 New Albany National Bank. Farmers National Bank.18 Peoples 2 American National Bank. First National Bank.1 1 Seymour National Bank. Citizens National Bank.' Bedford Evansville WISCONSIN. (See also district No. 9.) Farmers & Merchants National Bank.1 First National Bank.i 4 Nokomis National Bank. First National Bank.13 First National Bank. Ricker National Bank.1 First National Bank.26 First National Bank.2 Louisville Morganfield Owensboro Paducah American National Bank.^ Citizens National Bank.12 Farmers National Bank. 1 First-Harden National Bank. 3 Farmers National Bank. 1 First National Bank. 3 Henderson National Bank. First National Bank.1 7 Anderson National Bank. Lawrenceburg National Bank.2 Citizens National Bank.83 Marion National Bank. Louisville National Banking Company.5 National Bank of Kentucky.13 Morganfield National B ank.4 United States National Bank. City National Bank.14 First National Bank. MISSISSIPPI. (See also district No. 6.) Greenville First National Bank.3 MISSOURI. ARKANSAS. Batesville Eldorado Fordyce Fort Smith Hot Springs Jonesboro Little Rock Mariana Newport Texarkana First National Bank.11 1 Citizens National Bank. First National Bank.3 Merchants National Bank.1 1 Arkansas National Bank. 7 Citizens National Bank. First National B ank.1 England National Bank.* 3 Lee County National Bank. First National Bank.21 State National Bank. (See also district No. 10.) Carrollton Chillicothe Columbia Hannibal Kirksville Ridgeway St. Louis ILLINOIS. CSe8 also district No. 7.) Anna First National Bank.'2 Belleville First National Bank. Edwardsville Edwardsville National Bank.1* 3 Jacksonville Ayers National Bank. Metropolis City National Bank.33 Mount Sterling: First National Bank.2 Murphysboro First National Bank. Sedalia Springfield Versailles First National Bank.2 First National Bank.1 Boone 3County N a t i o n a l Bank. Exchange National Bank.13 Hannibal National Bank. Citizens National Bank.2 .First National Bank.1 Merchants - Laclede National Bank.s 1 National Bank of Commerce. State National Bank.1 First National Bank.3 3 Citizens National Bank. 3 Union National Bank. First National Bank.4 TENNESSEE. (See also district No. 6.) Memphis Central State National Bank .; EXHIBIT K—FIDUCIARY POWERS GRANTED. DISTRICT NO. 10—Continued. DISTRICT NO. 9. COLORADO—continued. MICHIGAN. Denver (See also district No. 7.) 3 Manistique Negaunee First National Bank. Neeaunee National Bank.* MINNESOTA. 2 Albert Lea Austin First National Bank. Austin National Bank. 1 First National Bank.* First Natonal Bank. 1 Merchants National Bank.2 American National Bank.2 City National Bank.* First National Bank.2 Fergus Falls National Bank. 2 Metropolitan National Bank.t Midland National Bank.2 Northwestern National Bank. 5 First National Bank. 1 National Farmers Bank. 7 Goodhue County National Bank.i First National Bank.2 First National Bank.i 1 Farmers National Bank. First National Bank.i Winona National Bank. 1 Bemidii Crookston Duluth Fergus Falls Minneapolis Owatonna Red "Wing St. Peter Stillwater Waseca Wells Winona MONTANA. Merchants National Bank. 3 Montana National Bank.i 3 Commercial National Bank.3 Great Falls National Bank. First National Bank.310 First National Bank. First National Bank. 1 Western2 Montana National Bank. Billings Bozeman Great Falls Kalispell Lewistown Miles City Missoula NORTH DAKOTA. First National Bank.43 First National Bank. 1 First National Bank. Ellendale Fonnan Grand Forks Eagle Englewood Fort Collins Fort Morgan Grand Junction Greeley Hugo Idaho Springs Las Animas Longmont Loveland Sterling Trinidad Walsenburg Aberdeen National Bank.3 First National Bank. 31 First National Bank. First National Bank. 3 First National Bank. 34 First National Bank.11 First National Bank. 3 Minnehaha National Bank. Security National Bank. 3 2 Sioux Falls National Bank.4 American National Bank. First National Bank.41 First National Bank. Spearfish Watertown Webster WISCONSIN. Topeka Troy Winfield Ashland National Bank. 1 11 Northern National Bank. First National Bank. 43 First National Bank. National Manufacturers Bank.4 First National Bank.™ Barron Clintonville Neenah Superior MISSOURI. Cameron Carthage Kansas City Neosho St. Joseph Boulder Canon City Center Colorado Springs Boulder National Bank.» Citizens National Bank. 10 Freemont County National Bank. 3 First National Bank. 3 Exchange National Bank.i First National Bank. 1 178983—20 18 First National Bank. 4 Central National Bank. 4 Commonwealth National Bank. 11 Drovers National Bank. 3 Fidelity National Bank & Trust Co.i First National Bank.^ Interstate National Bank. 1 Midwest National Bank & Trust Co.2 New England National Bank.i First National Bank. 1 3 American National Bank. Burnes National Bank. 3 Tootle-Lacy National Bank. 2 NEBRASKA. Butte Decatur Lyons Norfolk Omaha DISTRICT NO. 10. COLORADO. First National Bank. 3 First National Bank.22 11 Citizens National Bank. 3 Farmers National Bank. First National Bank. 3 First National Bank. 3 Commercial National 4 Bank. 1 First National Bank. Lawrence National Bank.* First National Bank. 4 Peoples National Bank. 3 National Bank of Commerce.' 3 National Bank of Sabetha. Farmers National Bank. 3 National Bank of America ' 3 Farmers National Bank. First National Bank.4 First National Bank, i (See also district No. 8.) (See also district No. 7.) Ashland 1 Colorado National Bank. 1 Denver National Bank. 1 First National Bank. United States National Bank.* First National Bank of Eagle County.3 First National Bank. 33 First National Bank. Poudre Valley National Bank." First National Bank. 3 Grand Valley National1 Bank. 1 First National Bank. 1 Greeley National Bank. Union National Bank. 3 First National Bank. 34 First National Bank.3 First National Bank. 1 American National Bank. First National Bank. 18 10 Loveland National Bank.1 Farmers National Bank. First National Bank. 4 First National Bank.i KANSAS. Anthony Coffeyville Fort Scott Goodland Horton. Hutchinson Independence Jewell City Lawrence Luray Ottawa Pittsburg Sabetha Salina SOUTH DAKOTA. Aberdeen Arlington Brookings Colman Flandreau Lake Preston Rapid City Sioux Falls 267 Ord Utica First National Bank.*4 First National Bank. First National Bank. 4 4 Norfolk National Bank. First National Bank. 3 Merchants National Bank. ? United States National Ban k. • First National Bank. 3 First National Bank.2* NEW MEXICO. (See also district No. 11.) Las Vegas Raton Santa Fe San Miguel National Ban k First National Bank. 11 First National Bank. 1 l 268 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. DISTRICT NO. 10—Continued. OKLAHOMA. (See also district No. 11.) Ada First National Bank.io Lawton City National Bank.is McAlsster American National Bank.6 Muskogee First National Bank.* Oklahoma City American National Bank.™ Farmers National Bank.13 Liberty National Bank. Security National Bank.2 Pond Creek Farmers National Bank.3 Shawnee National Bank of Commerce.4 Tulsa Central National Bank.i Exchange National Bank.is First National Bank.412 Woodward First National Bank. WYOMING. Basin Buffalo Casper Cheyenne Cody Evanston Kemmerer Laramie Powell Rawlins Rock Springs Sheridan Shoshoni First National Bank.™ First National Bank.3 Casper National Bank.3 3 Wyomin.2; National Bank. Citizens National Bank.i First National Bank.i Stock Growers National Bank.i Shoshone National Bank & i First National Bank.* First National Bank.34 First National Bank. First National Bank.2 First National Bank.i 4 Rawlins National Bank. First National Bank.2 Rock Springs National Bank.i First National Bank.i First National Bank.2 DISTRICT NO. 11. ARIZONA. Nogales Tucson First National Bank.2 Arizona National Bank. 1 Consolidated National Bank.3 LOUISIANA. (See also district No. 6.) Shreveport Commercial National Bank 3 First National Bank.3 NEW MEXICO. (See also district No. 10.) Albuquerque State National Bank.3 Carlsbad First National Bank.i 4 Roswell Citizens National Bank. First National Bank.4 Silver City Silver City National Bank.31 TEXAS. Abilene Amarillo Austin Beaumont Bonham Brownwood Campbell Colorado Corsicana Dallas Denison El Paso Fort Worth Citizens National Bank.& First National Bank.3 American National Bank.4 First National Bank.3 First National Bank. < Citizens National Bank. 1 Campbell National Exchange Bank.* City National Bank.3 Corsicana National Bank 3 City National Bank.i National Bank of Commerce.3 Tenison National Bank.3 State National Bank.i City National Bank.i First National Bank.12 Fort Worth National Bank. 3 Stock Yards National3 Bank.3 First National Bank. First National Bank.32 Gal vest on Granger DISTRICT NO. 11—Continued. TEXAS—continued. Greenville Greenville National Exchange Bank.3 Houston National Bank of Commerce.!1 McKinney First National Bank.43 Marshall First National Bank. Marshall National Bank.3 Orange First National Bank.i 3 Palestine Royal National Bank. Port Arthur First National Bank.s San Angelo Central National Bank.3 First National Bank.i San Angelo National Bank.4 Western National Bank.i San Antonio Lockwood National Bank. 1 Sealy Sealy National Bank.3 Sherman Commercial National4 Bank.i Stanton First National Bank. Texarkana Texarkana National Bank.i Troup First National Bank.e Tyler Citizens National Bank.43 Victoria Victoria National Bank. Waco First National Bank.2 Wichita Falls City National Bank.i National Bank of Commerce.3 First National Bank.i DISTRICT NO. 12. ALASKA. Fairbanks First National Bank.i CALIFORNIA. Bakersfield Calexico Chico Fresno Fullerton Los Angeles Mountain View Oakland Orland Pasadena Pleasanton Redwood City Sacramento San Francisco Santa Barbara Visalia Wilmington First National Bank.i First National Bank.s Butte County National Bank.i Farmers National Bank.i Farmers & Merchants National Bank.5 Continental National Bank.6 Farmers & Merchants National Bank.i First National Bank.5 Central National Bank.i First National Bank.5 National Bank & Trust Co. * First National Bank.5 First National Bank of Mateo County.so Capital National Bank.i National Bank of D. O. Mills & Co.11 American National Bank.5 Bank of California, N. A.i First National Bank.i First National Bank.5 First National Bank.s IDAHO;. Boise Boise City National Bank.6 First National Bank of Ida- Hagerman Hailey Moscow Payette Weiser First National Bank.6 4 Hailey National Bank. First National Bank.3 First National Bank.i First National Bank.i ho.25 NEVADA. Tonopah Nevada First National Bank.OREGON. Ashland Corvallis Eugene Harrisburg Junction City Marshfield Medford Milton Ontario First National Bank.13 First National Bank. First National Bank.43 First National Bank. First National Bank.is First National Bank of Coos Bay.i 1 Medford National Bank. i , 3 First National Bank.29 j First National Bank. ^ EXHIBIT L—ACCEPTANCES TO 100 PER CENT. DISTRICT NO. 12—Continued. DISTRICT NO. 12—Continued. WASHINGTON—continued. OBEGON—-continued. Salem American National Bank.3 First National Bank.33 First National Bank. 1 United States National Bank. Capital National Bank.1 Salt Lake City Continental National Bank.* Pendleton Portland 269 Ellensburg Everett Mount Vernon Oroville Pullman Seattle UTAH. Deseret National Bank.3 WASHINGTON. Washington National Bank.4 First National Bank.i4 First National Bank. First National Bank.*10 First National Bank. Dexter 1 Horton National Bank. First National Bank.3 1 National Bank of Commerce. National City Bank.3 1 Seattle National Bank. " Union National Bank.1 Exchange National Bank.1 Vancouver National Bank.3 1 Baker Boyer National1 Bank. First National Bank. Third National Bank.23 Spokane Vancouver Bellingham National Bank.3 Walla Walla First National Bank.33 Clarkston First National Bank.1 3 Colfax Farmers National Bank.of stocks and bonds, guardian of estates, assignee, receiver, 1 Trustee, executor, administrator, registrar and committee of estates of lunatics.* * Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics. 3 Trustee, executor, administrator, and registrar of stocks and bonds. 4 Trustee, executor, and administrator. 5 Registrar of stocks and bonds. 6 Trustee. 7 Trustee, executor, administrator, guardian of estates, assignee, receiver, and committee of estates of lunatics.* 8 Trustee, executor, administrator, and guardian of estates.* 9 Trustee, executor, administrator, guardian of estates, and receiver.* 0 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and receiver. 1 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and receiver.* 2 Trustee, executor, and registrar of stocks and bonds. 3 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, and receiver. 14 Trustee, executor, administrator, assignee, and receiver.* 5 Trustee and registrar of stocks and bonds. 6 Trustee, executor, administrator, registrar of stocks and bonds, assignee, and receiver. 17 Trustee, executor, administrator, guardian of estates, assignee, receiver, and committee of estates of lunatics. •8 Trustee, executor, administrator, guardian of estates, assignee, and receiver.* " Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, receiver, and committee of estates of lunatics.* 20 Trustee, and registrar of stocks and bonds.* 31 Trustee, executor, administrator, guardian of estates, assignee, receiver, and committee of estates of lunatics.* 22 Trustee, executor, administrator, and guardian of estates. 23 Trustee, administrator, and registrar of stocks and bonds. 24 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, and receiver.* 25 Trustee, executor, administrator, registrar of stocks and bonds, and guardian of estates. 26 Trustee, executor, administrator, guardian of estates, assignee, and receiver. 27 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and committee of estates of lunatics. 28 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, and assignee. 29 Executor and administrator. 30 Trustee, executor, administrator, guardian of estates, receiver, and committee of estates of lunatics.* 31 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and committee of estates of lunatics.* s2 Trustee and executor. 33 Trustee, executor, administrator, registrar of stocks and bonds ,and guardian of estates.* Bellingham Exhibit L.—ACCEPTANCES TO 100 PER CENT. The following banks have been granted authority by the Federal Reserve Board to accept drafts and bills of exchange up to 100 per cent of their capital stock and surplus: DISTRICT NO. 1. Connecticut: Hartford Norwich Maine: Portland Hartford Aetna National Bank. Phoenix National Bank. Thames National Bank. Canal National Bank. Portland National Bank. 270 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Massachusetts: Boston Dedham Fall River Fitchburg New Bedford Springfield Worcester Rhode Island: Providence Beacon Trust Co. Commonwealth Trust Co. First National Bank. Fourth-Atlantic National Bank, International Trust Co. Merchants National Bank. National Shawmut Bank. National Union Bank. Old Colony Trust Co. Second National Bank. State Street Trust Co. Webster & Atlas National Bank. Dedham National Bank. Massasoit-Pocasset National Bank. Safety Fund National Bank. First National Bank. New Bedford Safe Deposit & Trust Co. Springfield National Bank. Merchants National Bank. Blackstone Canal National Bank. Merchants National Bank. National Bank of Commerce. Providence National Bank. DISTRICT NO. 2. Connecticut: Bridgeport New Jersey: Hoboken Newark New Brunswick Paterson New York: New York City National Bank. First National Bank. National Newark & Essex Banking Co. National Bank of New Jersey. Hamilton Trust Co. Paterson National Bank, American Exchange National Bank. Atlantic National Bank. Bankers Trust Co. Bank of America. Bank of Manhattan Co. Bank of New York, N. B. A. Central Union Trust Co. Chase National Bank. Chemical National Bank. Citizens National Bank. Columbia Trust Co. Corn Exchange Bank. Equitable Trust Co. Farmers Loan & Trust Co. Fifth Avenue Bank. First National Bank. Franklin Trust Co. Guaranty Trust Co. Harriman National Bank. Importers & Traders National Bank. Irving National Bank. Liberty National Bank. Mechanics & Metals National Bank. Mercantile Bank of the Americas. Mercantile Trust & Deposit Co. Merchants National Bank. National Bank of Commerce. National City Bank. National Park Bank. New Netherlands Bank. Scandinavian Trust Co. EXHIBIT L—ACCEPTANCES TO 100 PER CENT. New York—Continued. New York Utica Seaboard IM ational Bank. Second National Bank. U. S. Mortgage & Trust Co. W. R. Grace & Co.'s Bank. First National Bank. Utica Trust & Deposit Co. DISTRICT NO. 3. Pennsylvania: Philadelphia Bank of North America. Corn Exchange National Bank. First National Bank. Fourth Street National Bank. Girard National Bank. Market Street National Bank. Philadelphia National Bank. Tradesmen's National Bank. DISTRICT NO. 4. Kentucky: Lexington Ohio: Akron Cincinnati Cleveland Toledo Pennsylvania: Pittsburgh Phoenix & Third National Bank. First-Second National Bank. Fifth-Third National Bank. Central National Bank. Cleveland Trust Co. First National Bank. Guardian Savings & Trust Co. Superior Savings & Trust Co. Union Commerce National Bank. Guardian Trust & Savings Bank. Bank of Pittsburgh, N. A. First National Bank. Mellon National Bank. Peoples National Bank. Pittsburgh Trust Co. Union National Bank. Union Trust Co. DISTRICT NO. 5. Maryland: Baltimore North Carolina: Wilmington South Carolina: Charleston Orangeburg Rock Hill Virginia: Danville Hampton Norfolk Baltimore Trust Co. Drovers & Mechanics National Bank. Farmers & Merchants National Bank. Merchants-Mechanics First National Bank. National Bank of Commerce. National Exchange Bank. National Marine Bank. National Union Bank of Maryland. Second National Bank. Murchison National Bank. Bank of Charleston, N. B. A. Peoples National Bank. Edisto National Bank. Peoples National Bank. First National Bank. Merchants National Bank. Citizens Bank. Marine Bank. National Bank of Commerce. Norfolk National Bank. Seaboard National Bank. Virginia National Bank. 271 272 ANNUAL REPOKT OF THE FEDERAL RESERVE BOARD. Virginia—Continued Richmond American National Bank. Bank of Commerce & Trusts. First National Bank. Merchants National Bank. National State and City Bank. Planters National Bank. DISTRICT NO. 6. Alabama: Albany Decatur Huntsville Troy Florida: Jacksonville Pensacola Georgia: Atlanta Cordele Macon Savannah Valdosta Louisiana: ' New Orleans Mississippi: Vicksburg Tennessee: Chattanooga Clarksville Central National Bank. City National Bank. Henderson National Bank. Farmers & Merchants National Bank. Atlantic National Bank. Citizens & People's National Bank Atlanta National Bank. Fourth National Bank. Lowry National Bank. American National Bank. Fourth National Bank. Macon National Bank. Citizens Trust Co. Citizens & Southern Bank. Hibernia Bank. National Bank of Savannah. Savannah Bank & Trust Co. First National Bank. Canal Commercial National Bank. Canal Commercial Trust & Savings Bank. Hibernia Bank & Trust Co. Interstate Trust & Banking Co. Marine Bank & Trust Co. New Orleans National Bank. Whitney-Central National Bank. Merchants National Bank. Hamilton National Bank. First National Bank. DISTRICT NO. 7. Illinois: Chicago Indiana: Indianapolis Michigan: Detroit Wisconsin: Milwaukee Mississippi: http://fraser.stlouisfed.org/ Canton Federal Reserve Bank of St. Louis Chicago Trust Co. Continental & Commercial National Bank. Corn Exchange National Bank. Drovers National Bank. First National Bank. Fort Dearborn National Bank. Harris Trust & Savings Bank. Illinois Trust & Savings Bank. Live Stock Exchange National Bank. Merchants Loan & Trust Co. National Bank of the Republic. National City Bank. Union Trust Co. Fletcher American National Bank. First & Old Detroit National Bank. First National Bank. DISTRICT NO. 8. First National Bank. EXHIBIT L Missouri: St. Louis Tennessee: Memphis Minnesota: Minneapolis St. Paul Kansas: Hutchinson Missouri: Kansas City St. Joseph Arizona: Nogales Texas: Austin Brownwood Dallas Fort Worth Gainesville Hillsboro Honey Grove Houston Navasota Paris San Angelo Terrell Waco Waxahachie California: San Francisco _ Oregon: Portland ACCEPTANCES TO 100 PER CENT. First National Bank. Liberty Bank. Mercantile Trust Co. Merchants-Laclede National Bank. Mississippi Valley Trust Co. National Bank of Commerce. Union & Planters Bank & Trust Co. Central State National Bank. DISTRICT NO. 9. First & Security National Banlsv Northwestern National Bank. Capital National Bank. First National Bank. DISTRICT NO. 10. First National Bank. First National Bank. Commerce Trust Co. National Bank of Commerce. First National Bank. DISTRICT NO. 11. First National Bank. American National Bank. Brownwood National Bank. American Exchange National Bank. City National Bank. Tenison National Bank. .American National Bank. Fort Worth National Bank. National Bank of Commerce. Stockyards National Bank. First National Bank. Citizens National Bank. State National Bank. First National Bank. Houston National Exchange Bank. Lumbermans National Bank. National Bank of Commerce. South Texas Commercial National Bank. Union National Bank. First National Bank. Lamar State Bank & Trust Co. First National Bank. .First National Bank. American National Bank. First National Bank. Waxahachie National Bank. DISTRICT NO. 12. American National Bank. Anglo & London-Paris National Bank. Bank of California, N. A. Crocker National Bank. First National Bank. Wells Fargo-Nevada National Bank. First National Bank. Ladd & Tilton Bank. Northwestern National Bank. United States National Bank. 273 274 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Washington: Seattle.. .Dexter Horton National Bank. First National Bank. National Bank of Commerce of (Seattle. Seaboard National Bank. Seattle National Bank. .Spokane & Eastern Trust Co. Old National Bank. Exchange National Bank. Spokane. Exhibit M.—PERSONNEL AND SALARIES. Salaries of officers and employees of Federal Reserve Banks. FEDERAL RESERVE BANK OF BOSTON. Number of officers and employees. Salaries. Departments. 1919 1915 1916 1917 1918 1 1 1 8 160 29 126 1 1 2 8 223 32 187 $10,000 15,000 $10,000 20,000 $12,000 20,000 $15,000 8,500 6,100 3,100 2,100 10,900 15,260 11,360 24,460 17,500 57,700 16,530 24,964 $12,000 20,000 11,000 32,975 134,283 27,343 75,635 1915 1916 1917 1918 Chairman and Federal Reserve agent Governor Deputy governor Other officers Banking department Bookkeeping department... Transit department Federal Reserve agent's department Fiscal agency department General Total 1 1 1 1 1 1 2 4 3 3 3 13 12 25 5 55 17 30 1919 25;ooo 24,000 38,500 265,200 33,240 188,240 2 3 15 211 30 3 14 262 25 3,680 13 4 112 23 2,500 4 3,580 10,280 7,100 106,200 26,378 17,400 252,873 23,477 2,095 21,780 347,980 23,460 20 71 248 585 755 50,880 105,940 288,372 609,081 982,400 FEDERAL RESERVE BANK OF NEW YORK (INCLUDING BUFFALO BRANCH). Chairman and Federal Reserve agent Governor Deputy governor Other officers Banking department Bookkeeping department... Transit department Federal Reserve agent's department Fiscal agency department... Capital issues General Total. 1 1 1 1 2 4 27 17 892 1,297 78 42 614 446 299 1,219 5 42 22 73 173 $16,000 $16,000 $20,000 $20,000 $30,000 30,000 15,000 30,000 30,000 50,000 20,000 45,000 81,000 51,000 32,800 42,000 56,200 89,400 195,700 60,588 97,552 301,648 945,360 1,608,220 4,620 10,700 15,360 47,680 100,560 6,430 36,480 94,480 338,430 580,700 26 713 137 829 -2,657 2,896 5,540 9,520 17,860 360,932 1,501,840 11,720 8,460 37,440 21,540 49,980 955,888 160,320 155,978 246,192 970,580 3,104,830 3,782,368 FEDERAL RESERVE BANK OF PHILADELPHIA. Chairman and Federal Reserve agent Governor Otherofflcers Banking department Bookkeeping department... Transit department Federal Reserve agent's department Fiscal agency department... General Total. 1 1 7 143 36 423 1 1 9 134 26 186 $10,000 20,000 5,000 14,400 3,300 5,880 11 63 216 647 77,036 $10,000 20,000 10,200 15,940 9,360 24,180 $10,000 $10,000 20,000 20,000 21,250 37,000 34,084 137,740 18,080 47,540 47,790 79,560 $15,000 25,000 51,500 173,060 29,700 176,904 5,976 7,140 12,480 14,672 8,060 7,880 23,160 102,240 16,848 32,080 27,130 76,640 237,440 111,492 199,272 474,040 812,374 275 EXHIBIT M—PERSONNEL, AND SALARIES. Salaries of officers and employees of Federal Reserve Banks—Continued. FEDERAL RESERVE BANK OF CLEVELAND (INCLUDING PITTSBURGH AND CINCINNATI BRANCHES). Number of officers and employees. Salaries. Departments. 1919 1915 1916 1917 1918 1919 1915 1916 1917 1918 1 1 11 129 1 1 13 175 $10,000 18,000 7,000 16,900 5,160 1,080 $10,000 20,000 10,750 13,430 4,380 23,370 $12,000 20,000 21,050 23,800 19,080 52,710 $15,000 20,000 48,850 155,418 35,280 130,150 $20,000 25,000 65,199 232,819 41,580 179,620 7,820 87,180 16,440 16,080 321,884 22,800 32,480 184,589 66,045 260,080 765,462 847,332 Chairman and Federal Reserve agent Governor Other officers Banking department Bookkeeping department... Transit department Federal Reserve agents' department Fiscal agency department... General 169 | 211 17 105 65 3,500 3,780 6,900 8,040 589 ! 626 68,540 93,750 10 203 26 Total. 65 211 FEDERAL RESERVE BANK OF RICHMOND (INCLUDING BALTIMORE BRANCH, OPENED MAR. 1, 1919). Chairman and Federal Reserve agent 1 Governor 1 Other officers 2 Banking department 10 Bookkeeping department... 3 Transit department 7 Federal Reserve agent's department 1 Fiscal agency department... 5 General Total . 30 1 $10,000 $10,000 $10,000 $10,000 1 10,000 12,000 15,000 15,000 11 5,978 9,428 14,550 16,359 82 12,742 13,956 22,880 76,953 13 4,748 5,520 4,980 9,640 157 2,278 11,599 21,954 59,485 1 1 2 11 5 36 1 1 4 18 6 43 1 1 6 63 12 79 1 2 20 14 4 40 48 9 54 73 945 916 6,439 8,819 63 109 254 401 53,130 72,238 6 2,400 21,024 8,540 $12,000 18,000 50,800 93,410 14,540 125,228 7,202 54,930 36,810 19,900 63,330 83,560 121,328 286,379 480,768 FEDERAL RESERVE BANK OF ATLANTA (INCLUDING BIRMINGHAM, JACKSONVILLE, NASHVILLE, AND NEW ORLEANS BRANCHES). Chairman and Federal Reserve agent Governor Other officers Banking department Bookkeeping department... Transit department Federal Reserve agent's department Fiscal agency department... General Total. 65 132 1 1 18 98 32 109 $7,500 9,000 13,100 23,928 3,600 1,260 10 71 46 3,200 4,380 3,180 4,080 64,768 81,348 317 $9,000 $10,000 $10,000 9,000 10,000 10,000 12,060 11,380 53,400 21,828 37,690 92,770 6,480 17,100 5,100 15,900 20,180 53,790 5,220 61,010 3,120 $10,000 15,000 76,600 113,850 33,000 98,400 9,180 102,240 25,598 21,250 82,980 36,288 165,080 374,078 487,368 FEDERAL RESERVE BANK OF CHICAGO (INCLUDING DETROIT BRANCH). Chairman and Federal Reserve agent Governor Other officers Banking department Bookkeeping department... Transit department Federal Reserve agent's department Fiscal agency department... General Total. $10,000 20,000 17,500 31,880 8,700 30,240 $10,000 24,000 33,500 47,880 9,520 49,280 $12,000 24,000 79,000 180,910 25,100 109,160 $18,000 30,000 132,000 387,682 38,580 207,236 7,200 7,800 11,134 20,985 13,800 215,930 61,130 17,120 354,370 183,800 33,460 365,538 274,091 1 1 18 155 24 124 1 1 25 301 31 11 292 189 17 277 247 815 1,199 96,560 147,105 $10,000 20,000 14,000 21,426 4,100 8,700 465,040 985,460 1,586,587 276 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Salaries of officers and employees of Federal Reserve Banks—Continued. FEDERAL RESERVE BANK OF ST. LOUIS (INCLUDING LOUISVILLE, MEMPHIS, AND LITTLE ROCK). Number of officers and employees. Salaries. Departments. 1915 1916 1917 1918 Chairman and Federal Reserve agent.. Governor Other officers Banking department Bookkeeping department... Transit department Federal Reserve agent's department Fiscal agency department. General Total 1 1 1919 1915 1916 1917 1918 $10,000 20 000 35,500 44,500 5,900 34,620 $10,000 20,000 55,500 123,292 12,000 57,540 $15,000 20,000 66,300 261,850 25,650 72,350 3 340 7,920 65 840 132,620 4,920 47,000 10,950 156,700 24,100 1 1 8 43 7 50 1 1 13 117 11 60 1 1 14 225 23 114 $10,000 20,000 13,500 12,820 6,200 9,660 $10,000 20 000 13,500 17,180 6,260 16,140 2 59 6 5 126 51 8 104 51 5,900 5 900 4 2,820 2,820 53 177 385 541 80,900 91,800 1 I T 2 8 5 14 2 12 6 24 3 3 5 39 224,620 1919 465,872 652,900 $12,000 12,000 FEDERAL RESERVE BANK OF MINNEAPOLIS. Chairman and Federal Reserve agent Governor Deputy governor Other officers Banking department Bookkeeping department Transit department Federal Reserve agent's department J Fiscal agency department...| Total $ 9,000 15,000 $10,000 18,000 3,000 i 3,500 11,940 15,850 2,460 ] 5,540 2,000 j 19,460 12,500 29,120 6,040 24,040 $10,000 18,000 ",000 16,210 56,629 6,078 33,243 4,580 51,180 5,636 65,721 28,300 72,360 155,460 ! 217,517 347,360 S 7,500 15,000 5 88 13 101 14 j 5,520 4,080 64 20 54 127 267 287 j 47,420 I 72,430 FEDERAL RESERVE BANK OF KANSAS CITY (INCLUDING BRANCHES). Chairman and Federal Reserve agent Governor Other officers Bookkeeping department... Transit department Federal Reserve agent's department Fiscal agency department... General Total. 15 40 17,900 104,380 14,560 85,860 OMAHA AND DENVER 1 1 12 16 139 1 1 15 18 199 $7, 500 7,500 6,000 6,120 10,980 $7,500 $7,500 $9,000 10,000 12,500 15,000 8,800 I 17,400 60,000 4,500 | 5,340 20,180 18,780 | 22,960 108,360 $12,000 18,000 64,400 26,860 206,160 5 201 105 4,080 157 186 13,460 5,760 4,380 7,680 ! 93,190 219,810 18,460 ! 27,020 122,880 9,100 194,890 239,060 583 55,640 72,420 i 193,590 560,990 770,470 52 ! 153 FEDERAL RESERVE BANK OF DALLAS (INCLUDING EL PASO AND HOUSTON BRANCHES, THE LATTER OPENED AUG. 4, 1919). Chairman and Federal Reserve agent 1 Governor 1 Other officers 1 2 Banking department 11 Bookkeeping department...! 2 Transit department | 2 Federal Reserve agent's de- j partment j 2 Fiscal agency department... • General I 10 Total ! 31 1 1 4 31 7 39 1 1 8 113 13 86 1 1 15 165 23 173 $7,500 10,000 11,000 17,140 1,620 2,100 2 75 12 j 10 5 162 14 16 89 22 63 403 505 170 $9,000 10,000 15,000 17,760 5,100 20,760 $10,000 $10,000 i $14,000 12,000 12,000 15,000 19,700 38,200 ! 62,800 39,300 136,200 i 202,460 6,360 12,840 ! 24,780 33,140 74,400 I 178,000 7,400 3,700 9,060 ii, 680 3,700 10,860 ; 25,260 60,690 191,104 118,260 7,580 10, 960 ; 21,000 65,820 93,000 192,470 ! 496,564 j 661,560 277 EXHIBIT M—PERSONNEL AND SALARIES. Salaries of officers and employees of Federal Reserve Banks—Continued. FEDERAL RESERVE BANK OF SAN FRANCISCO (INCLUDING SPOKANE, PORTLAND, SEATTLE, AND SALT LAKE CITY BRANCHES). Number of officers and employees. Salaries. Departments. 1915 1916 1917 1918 Chairman and Federal Reserve agent Banking department Bookkeeping department... Transit department Federal Reserve agent's deFiscal agency department Capital issues Total 1 1 1 3 31 5 15 1 1 10 77 17 31 3 2 1 1 2 10 2 2 4 3 122 11 22 62 273 1919 i 1915 1916 1917 1918 $12,000 15,000 12,200 30,230 4,620 11,640 $14,000 18,000 39,500 101,046 18,240 28,740 $14,000 18,000 68,280 190,560 30,960 62,940 $18,000 18,000 117,900 270,480 40,740 108,720 1919 1 I 1 18 157 27 64 1 1 25 196 33 100 $12,000 15,000 10,200 14,820 2,520 780 10 207 41 5 16 142 53 7,000 1,620 1,800 4,620 3,420 146,100 980 16,224 253,140 60,320 12,600 33,560 145,140 79,000 531 567 64,120 91,930 370,026 727,024 831,540 SALARIES OF OFFICERS AND EMPLOYEES OF THE FEDERAL RESERVE BOARD AS OF DECEMBER 31, 1919. OFFICE OF THE SECRETARY. W. T. Chapman, secretary R. G. Emerson, assistant secretary Staff: 1 at $3,600 1 at $2,500 1 at $2,240 1 at $2,000 5 at $1,800 2 at $1,700 1 at $1,680 3 at $1,500 6 at $1,440 3 at $1,320 1 at $1,200 1 at $1,100 1 at $1,020 1 at $600 1 at $360 (part time employee) 1 at $120 (part time employee) $6,000. 00 3, 600. 00 - 3, 600. 00 2, 500. 00 2, 240. 00 2, 000. 00 9, 000. 00 3, 400. 00 1, 680. 00 4, 500. 00 8, 640. 00 3, 960. 00 1, 200. 00 1,100.00 1, 020. 00 600 360 120 $55, 520. 00 OFFICE OF GENERAL COUNSEL. Geo. L. Harrison, general counsel Milton 0. Elliott, consulting counsel Walter S. Logan, assistant counsel Staff: 1 at $3,300 1 at $2,600 1 at $2,200 1 at $1,680 1 at $1,500 ,. - 8, 500. 00 5, 000. 00 5,000. 00 3, 300. 00 2, 600. 00 2, 200. 00 1, 680. 00 1, 500. 00 29,780 EXECUTIVE SECRETARY. W. W. Hoxton W. li. imiay , 10,000 FISCAL AGENT. - 4, 000. 00 278 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. ARCHITECTS. A. B. Trowbridge, consulting architect O. W. Ten Eyck, assistant architect. $8, 663. 66 4,000. 00 . $10, Wifi H6 OFFICES OF MEMBERS OF THE BOARD. Staff: 1 at $3,025 2 at $3,000 1 at $2,800 $1 at $2,600 1 at $2,500 1 at $2,400 3 at $1,440 % 3, 025. 00 6,000.00 2, 800. 00 2, 600. 00 2, 500. 00 2, 400. 00 4, 320. 00 23,645.00 DIVISION OF REPORTS AND STATISTICS. Morris Jacobson, statistician and chief of division E. L. Smead, assistant chief of division E. A. Goldenweiser, assistant statistician Staff: 1 at $2,250 1 at $2,240 3 at $2,000 1 at $1,920 1 at $1,800 1 at $1,650 2 at $1,600 1 at $1,520 3 at $1,500 4 at $1,400 8 at $1, 320 1 at $1,200 2 at $1,100 1 at $1,000 1 at $960 1 at $840 1 at $660 6,000. 00 4.000. 00 3, 300. 00 2, 250. 00 2, 240. 00 6, 000. 00 1, 920. 00 1, 800. 00 1, 650. 00 3, 200. 00 1, 520. 00 4,500.00 5, 600. 00 10, 560. 00 1, 200. 00 2, 200. 00 1,000. 00 960. 00 840. 00 660. 00 61^ 400. 00 DIVISION OF OPERATIONS AND EXAMINATION. W. W. Paddock, chief of division Examiners: John A. Will, chief Feder?l Reserve examiner James F. Herson, chief Federal Reserve examiner W. J. Donald George L. Hamilton James Buchanan, jr George A. Augherton Ralph M. Chapman 5, 500. 00 7,000. 00 5, 500. 00 4, 200. 00 4, 200. 00 3, 600. 00 3,000.00 3,000. 00 40,000.00 Assistant examiners: 2 at $2,700 1 at $2,500 5 at $2,400 1 at $2,200 1 at $2,100 2 at $2,000 1 at $1,800 Office staff: 2 at $1,440 2 at $1,320 1 at $1,200 1 at $960 1 at $120 (part-time employee). 5,400. 00 2,500.00 12,000. 00 2, 200. 00 2,100. 00 4,000.00 1,800.00 2, 880. 00 2, 640. 00 1, 200. 00 960.00 120. 00 30,000.00 7,800. 00 77, 800. 00 EXHIBIT M-—PERSONNEL AND SALARIES. 279 DIVISION OF ANALYSIS AND RESEARCH. H. Parker Willis, director Staff: 1 at |2,750 1 at $2,500... 1 at $2,400 1 at $2,000 1 at $1,800 4 at $1,500 1 at $1,440 1 at $1,320 2 at $1,200 1 at $1,080 1 at $1,000 $5, 000. 00 2, 750. 00 2,500. 00 2,400. 00 2,000.00 1, 800.00 6,000. 00 1, 440. 00 1, 320. 00 2,400. 00 1,080. 00 1,000.00 $29, 690. 00 DIVISION OF FEDERAL RESERVE ISSUE AND REDEMPTION. Willard E. Buell, chief of division Staff: 1 at $2,250 1 at $1,800 2 at $1,560 2 at $1,440 1 at $1,320 1 at $1,260 5 at $1,200 9 at $1,140 38 at $1,020 1 at $720 3,000. 00 2,250.00 1, 800.00 3,120. 00 2, 880. 00 1,320.00 1, 260. 00 6,000.00 10,260.00 38, 760. 00 720. 00 71,370.00 CURRENCY COUNTERS. Detailed to National Bank Redemption Division, office of the Comptroller of the Currency— 33 at 1,040 34, 320. 00 Detailed to National Bank Redemption Agency, office of the Treasurer of the United States— 78 at $1,040 81,120. 00 MESSENGERS. 1 at $1,140 2 at $1,100 2 at $1,080 4 at $840 1,140. 00 2, 200. 00 2,160. 00 3, 360. 00 8, 860. 00 CHARWOMEN. 3 at $240 720. 00 Total 464, 891. 66 SALARIES OF NATIONAL BANK EXAMINERS. [Effective in the year ending Dec. 31,1919.] Sidney B. Congdon, examiner at large, not assigned to any Federal Reserve district $4,000 DISTRICT NO. 1—BOSTON. (397 national member banks.) Daniel C. Mulloney, chief examiner $7,000 3 examiners, at $3,900; 1 examiner, at $3,600; 1 examiner, at $3,300; 1 examiner, at $2,400 21,000 m 28,000 280 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. DISTRICT NO. 2—NEW YORK. (637 national member banks.) Sherrill Smith, chief examiner $15, 000 1 examiner, at $4,500; 1 examiner, at $4,200; 3 examiners, at $3,600; 3 examiners, at $3,300; 1 examiner, at $3,000; 1 examiner, at $2,700; 2 examiners, at $2,400 39,900 $54, 900 DISTRICT NO. 3—PHILADELPHIA. (643 national member banks.) Edward I. Johnson, chief examiner 9, 000 examiner, at $4,800; 2 examiners, at $4,500; 1 examiner, at $4,000; 1 examiner, at $3,900; 1 examiner, at $3,600; 1 examiner, at $3,300; 4 examiners, at $3,000; 1 examiner, at $2,700; 2 examiners, at $2,400 48,100 57,100 DISTRICT NO. 4.—CLEVELAND. (749 national member banks.) Silas H. L. Cooper, chief examiner 8, 500 2 examiners, at $4,500; 1 examiner, at $4,200; 1 examiner, at $3,600; 1 examiner, at $3,300; 3 examiners, at $3,000; 1 examiner, at $2,700; 3 examiners, at $2,400 '. 39,000 DISTRICT NO. 5—RICHMOND. (543 national member banks.) James K. Doughton, chief examiner 8, 000 1 examiner, at $6,500; 1 examiner, at $4,200; 1 examiner, at $4,000; 2 examiners, at $3,600; 1 examiner, at $3,300; 3 examiners, at $3,000; 2 examiners, at $2,400 39, 000 47,000 DISTRICT NO. 6—ATLANTA. (364 national member banks.) J. William Pole, chief examiner 6, 500 2 examiners, at $4,200; 1 examiner, at $3,900; 2 examiners, at $3,600; 2 examiners, at $3,300; 1 examiner, at $2,700; 1 examiner, at $2,400.... 31, 200 37,700 DISTRICT NO. 7—CHICAGO. (1,049 national member banks.) Daniel V. Harkin, acting chief examiner 5, 500 2 examiners, at $4,500; 1 examiner, at $4,200; 6 examiners, at $3,900; 4 examiners, at $3,600; 1 examiner, at $3,300; 3 examiners, at $2,400 61, 500 67,000 DISTRICT NO. 8—ST. LOUIS. (473 national member banks.) John S. Wood, acting chief examiner 3, 900 2 examiners, at $4,500; 1 examiner, at $4,000: 1 examiner, at $3,600; 2 examiners, at $3,300; 2 examiners, at $3,000 29, 200 33,100 DISTRICT NO. 9—MINNEAPOLIS. (842 national member banks.) Fred Brown, chief examiner , 7, 000 2 examiners, at $4,200; 1 examiner, at $4,000; 1 examiner, at $3,600; 1 examiner, at $3,300; 4 examiners, at $3,000; 3 examiners, at $2,400 38, 500 45,500 EXHIBIT M PERSONNEL, AND SALABIES. 281 • DISTRICT NO. 10—KANSAS CITY. (1,001 national member banks.) Stephen L. Newnham, chief examiner $7, 000 1 examiner, at $4,500; 2 examiners, at $4,200; 3 examiners, at $3,900; 1 examiner, at $3,600; 2 examiners, at $3,300; 2 examiners, at $3,000; 1 examiner, at $2,700; 3 examiners, at $2,400 50, 700 $57, 700 DISTRICT NO. 11—DALLAS. (641 national member banks.) Richard H. Collier, chief examiner 7, 500 1 examiner, at $4,000; 1 examiner, at $3,900; 4 examiners, at $3,600; 1 examiner, at $3,300; 1 examiner, at $3,000; 2 examiners, at $2,400. 33, 400 40,900 DISTRICT NO. 12.—SAN FRANCISCO. (598 national member banks.) H. R. Gaither, chief examiner 7, 500 1 examiner, at $5,000; 2 examiners, at $4,800; 2 examiners, at $3,600; 2 examiners, at $3,300; 1 examiner, at $3,000; 1 examiner, at $2,700; 1 examiner, at $2,400 36, 500 44,000 Grand total of annual salaries of examiners on Dec. 31, 1919 564, 400 RECAPITULATION. Examining staff: Chief examiners— At $15,000 per annum At $9,000 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 At $5,500 per annum At $3,900 per annum Total chief examiners Salaries, chief examiners Other examiners: At $6,500 per annum At $5,000 per annum At $4,800 per annum At $4,500 per annum At $4,200 per annum At $4,000 per annum At $3,900 per annum At $3,600 per annum At $3,300 per annum At $3,000 per annum At $2,700 per annum At $2,400 per annum 1 1 1 1 2 3 1 *1 l 1 12 $92, 400 1 1 3 10 10 2 6 15 23 18 21 6 23 , Total other examiners Salaries, other examiners Total examining staff Total salaries 1 Acting. 137 472,000 149 564,400 2 Incluies one examiner at large. 282 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Exhibit N.—DIRECTORY OF THE FEDERAL RESERVE BOARD AND FEDERAL RESERVE BANKS. FEDERAL RESERVE BOARD. EX OFFIGIO MEMBERS. GARTER GLASS, Secretary of the Treasury, Chairman. JOHN SKELTON WILLIAMS, W. P. G. HARDING, Governor. ALBERT STRAUSS, Vice Governor. ADOLPH C. MILLER. CHARLES S. HAMLIN. Comptroller of the Currency. HENRY A. MOEHLENPAH. GEORGE L. HARRISON, General Counsel. W. T. CHAPMAN, Secretary. K. G. EMERSON, Assistant Secretary. W. M. IMLAY, Fiscal Agent. W. W. PADDOCK, Chief, Division of Operations and Examination. W. W. HOXTON, Executive Secretary. H. PARKER WILLIS, Director, Division of Analysis and Research. M. JACOBSON, Statistician. J. E. CRANE, Acting Director, Division of Foreign Exchange. OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS. l DISTRICT NO. 1—FEDERAL RESERVE BANK OF BOSTON. [Frederic H. Curtiss, chairman and Federal Reserve agent; Allen Hollis, deputy chairman: Chas. A. Morss, governor.] Director. Term expires. Residence. • • Class A: Thomas P. Beal Edward S. Kennard F. S. Chamberlain Class B: Philip R. Allen Chas. G. Washbura Edmund R. Morse Class C: Frederic H. Curtiss Allen Hollis Jesse H. Metcalf " Boston, Mass Rumford, Me New Britain, Conn Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 East Walpole, Mass Worcester, Mass Proctor, Vt Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 Boston, Mass Concord, N. H Providence, R. I Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 DISTRICT NO. 2—FEDERAL RESERVE BANK OF N E W YORK. [Pierre Jay, chairman and Federal Reserve agent; George Foster Peabody. deputy chairman; Benjamin Strong, governor.] Class A: R. H. Treman Charles Sn ith James S. Alexander Class B: W B . Thompson 2 L. R. Palmer Charles A. Stone Class C: W. L. Saunders George Foster Peabody Pierre Jay '. Ithaca, N. Y Oneonta, N. Y New York, N. Y Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 Yonkers, N. Y Croton-on-Hudson, N. Y New York, N. Y Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 New York, N. Y Saratoga Springs N Y New York, N. Y Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 DISTRICT NO. 2—BUFFALO BRANCH OF THE F E D E R A L R E S E R V E BANK OF N E W YORK [R. M. Gidney, manager.] Harry T. Ramsdell Elliott C. McDougal Clifford Hubbell Ray M Gidnev Frank L. Bartlett 1 Buffalo. N. Y . . do do do ... Olean, N. Y Dec. 31,1920 Do. Do. Do. Do. Includes directors elected or appointed in D e c , 1919, for the three-year term beginning Jan. 1,1920. * Resigned Dec. 22,1919. EXHIBIT N 283 DIRECTORY. Officers and Directors of Federal Reserve Banks—Continued. DISTRICT NO. 3—FEDERAL RESERVE BANK OF PHILADELPHIA. [Richard L. Austin, chairman and Federal Reserve agent; H. B. Thompson, deputy chairman; E. P. Passmore, governor.] Director. Class A.Joseph Wayne, jr... Francis Douglas M. J. Murphy Class B: Edwin S. Stuart Chas.K. Haddon... Alba B. Johnson Class C: Richard L. Austin.. Charles C. Harrison. H. B. Thompson... Residence. Philadelphia, Pa.. Wilkes-Barre, Pa. Clarks Green, Pa.. Philadelphia, Pa.. Camden, N. J. Philadelphia, Pa. Philadelphia, Pa. do Wilmington, Del. Term expires. Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 DISTRICT NO. 4—FEDERAL RESERVE BANK OF CLEVELAND. [D. C. Wills, chairman and Federal Reserve agent, Lewis B. Williams, deputy chairman; E. R. Fancher, governor.] Class A: Robert Wardrop O. N. Sams Chess Lamberton Class B: T. A. Combs John Stambaugh R. P. Wright Class C: D. C. Wills H. P. Wolfe Lewis B. Williams Pittsburgh, Pa Hilisboro, Ohio Franklin, Pa Lexington, Ky Youngstown, Ohio.. Erie, Pa Cleveland, Ohio Columbus, Ohio Cleveland, Ohio Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 DISTRICT NO. 4—PITTSBURGH BRANCH OF THE FEDERAL RESERVE BANK OF CLEVELAND. [George DeCamp, manager.] Chas. W. Brown. James D. Gallery. Harrison Nesbit.. R. B. Mellon George DeCamp.. Pittsburgh, Pa. .do. .do. .do. .do. Dec. 31,1920 Do. Do. Do. Do. DISTRICT NO. 4—CINCINNATI BRANCH OF THE FEDERAL RESERVE BANK OF CLEVELAND. [L. W. Manning, manager.] Judson Harmon Cincinnati, Ohio, Dec. 31,1920 Charles A. Hinsch.. do Do. L. W. Manning .do.. Do. W. S. Rowe ..do., Do. George D. Crabbs . .do. Do. DISTRICT NO. 5-FEDERAL RESERVE BANK OF RICHMOND. [Caldwell Hardy, chairman and Federal Reserve agent; James A. Moncure, deputy chairman; George J. Seay, governor.] Class A: Edwin Mann Chas. E. Rieman J. F. Bruton Class B: D. R.Coker Edmund Strudwick James F. Oyster Class C: Caldwell Hardy Howard Bruce James A. Moncure 178983—20 Bluefield.W. Va.. Baltimore, Md. Wilson, N. C Hartsville, S. C Richmond, Va Washington, D. C Richmond, Va Baltimore, Md Richmond, Va 19 Dec. 31.1920 Dec. 31.1921 Dec. 31.1922 Dec. Dec. Dec. Dec. Dec. Dec. 31,1920 31,1921 31,1922 31,1920 31,1921 31,1922 284 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Officers and Directors of Federal Reserve Banks—Continued. DISTRICT NO. 5—BALTIMORE BRANCH OF THE FEDERAL RESERVE BANK OF RICHMOND. [M. M. Prentis, manager.] Director. M. M. Prentis Chas.C. Homer William Ingle Waldo Newcomer H. B. Wilcox Residence. ! Baltimore, Md. j do ! do | do ! do Term expires. Dec. 31,1920 Do. Do. Do. Do. DISTRICT NO. 6—FEDERAL RESERVE BANK OF ATLANTA. [Jos. A. McCord, chairman and Federal Reserve agent; Edw. T. Brown, deputy chairman; M. B. Wellborn, governor.] Class A: P. R. Kittles John K. Ottley Oscar W. Newton Class B: gjLeon C. Simon J. A. McCrary W. H. Hartford Class C: Jos. A. McCord Edw. T. Brown W. H. Kettig ! j Sylvania, Ga | Atlanta, Ga i Jackson, Miss i New Orleans, La Decatur, Ga I Nashville, Tenn | I Atlanta, Ga J do Birmingham, Ala Dec. 31.1920 Dec. 31.1921 Dec. 31.1922 Dec. 31.1920 Dec. 31.1921 Dec. 31.1922 Dec. 31,1920 Dec. 31.1921 Dec. 31.1922 DISTRICT NO. 6—NEW ORLEANS BRANCH OF THE FEDERAL RESERVE BANK OF ATLANTA. [P. H. Saunders, chairman; Marcus Walker, manager.] New Orleans, La. .do.. Hattiesburg, Miss. Jackson, Miss Mobile, Ala New Orleans, La.. do R. S. Hecht Jno. E. Bouden, jr. Frank W. Foote... H. B.Lightcap.... A. P. Bush P. H. Saunders Marcus Walker Dec. 31,1920 Do. Do. Do. Do. Do. Do. DISTRICT NO. 6—BIRMINGHAM BRANCH OF THE FEDERAL RESERVE BANK OF ATLANTA. [W. H. Kettig, chairman; A. E. Walker, manager.] Birmingham, Ala. .do .do., .do.. .do.. Oscar Wells T. O. Smith W.W.Crawford. JohnH. Frye W . H . Kettig.... Dec. 31,1920 Do. Do. Do. Do. DISTRICT NO. 6—JACKSONVILLE BRANCH OF THE FEDERAL RESERVE BANK OF ATLANTA. [John C. Cooper, chairman; Geo. R. DeSaussure, manager.] E. W. Lane BionH. Barnett. Giles L.Wilson.. Fulton Saussy... JohnC. Cooper... Jacksonville, Fla. do .do., .do., .do.. Dec. 31,1920 Do. Do. Do. Do. 285 EXHIBIT N—DIBECTORY. Officers and Directors of Federal Reserve Banks—Continued. DISTRICT NO. 6—NASHVILLE BRANCH OF THE F E D E R A L RESERVE BANK OF ATLANTA. [W. H. Hartford, chairman; Bradley Currey, manager.] Director. P M Davis J. E.Caldwell .. E A Lindsey T. A. Embry W H Hartford ;. Residence. Term expires. Nashville, Term . . . do . do Winchester, Tenn Nashville Tenn Dec. 31,1920 Do. Do. Do Do. DISTRICT NO. 6—SAVANNAH AGENCY OF THE FEDERAL RESERVE BANK OF ATLANTA. [R. J. Taylor, manager.] 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: E. L. Johnson Waterloo, Iowa ! Dec. 31,1920 Geo. M. Reynolds Chicago, ill j Dec. 31,1921 Charles H. McNider Mason City, Iowa j Dec. 31,1922 Class B: Albert R. Erskine South Bend, Ind | Dec. 31,1920 Milwaukee, Wis Dec. 31,1921 A. H.Vogel John W. Blodgett Grand'Rapids, ~ " Mich. "" ' Dec.31,1922 Class C: j James Simpson J Chicago, 111 I Dec. 31.1920 Win. A. Heath I E vanston, 111 I Dec. 31.1921 E. T. Meredith Des Monies, Iowa Dec. 31.1922 DISTRICT NO. 7—DETROIT BRANCH OF THE F E D E R A L RESERVE BANK OF CHICAGO. [R. B. Locke, manager.] John Ballantyne... Emory W.Clark... Julius H. Haas Charles H. Hodges. R.B.Locke Detroit, Mich. .do. .do. .do. .do. Dec. 31,1920 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: LeRoy Percy Rolla Wells W. B. Plunkett Class C: John W. Boehne Wm. McC. Martin C. P. J. Mooney St. Louis, Mo Paducah, Ky Albion, 111 Greenville, Miss St. Louis, Mo Little Rock, Ark Evansville, Ind St. Louis, Mo Memphis, Tenn Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 ' Dec. 31,1920 Dec. 31,1921 • Dec. 31,1922 l ' Dec. 31,1920 Dec. 31,1921 i Dec. 31,1922 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 Embry L. Swearingen Louisville, Ky Elizabethtown, K y . Louisville, Ky .do. .do., Dec. 31,1920 Do. Do. Do. Do. 286 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. Officers and Directors of Federal Reserve Banks—Continued. DISTRICT NO. 8—MEMPHIS BRANCH OF THE F E D E R A L RESERVE BANK OF ST. LOUIS [John J. Hefiin, manager.] Director. R. Brinkley Snowden John D McDowell JohnJ Heflin . . T K Riddick S E. Ragland . . . . Residence. Term expires. Memphis, Tenn do do do .. do... Dec. 31,1920 Do. Do. Do. Do. DISTRICT NO. 8—LITTLE ROCK BRANCH OF THE F E D E R A L RESERVE BANK OF ST LOUIS. [A. F. Bailey, manager.] C. A. Pratt J. E. England, jr.. A. F. Bailey Moorhead Wright. G. W. Rogers Little Rock, Ark. do .do. .do. .do. Dec. 31,1920 Do. Do. Do. Do. DISTRICT NO. 9—FEDERAL RESERVE BANK OF MINNEAPOLIS. [John H. Rich, chairman and Federal Reserve agent; Win. H. Lightner, deputy chairman; R. A. Young, governor.] Class A: L. B. Hanna W. C. McDowell Theodore Wold Class B: N. B. Holter F. P. Hixon F. R. Bigelow Class C: John H. Rich W. H. Lightner C. H. Benedict Fargo, N. Dak Marion, N. Dak Minneapolis, Minn Dec. 31.1920 Dec. 31.1921 Dec. 31.1922 Helena, Mont La Crosse, Wis St. Paul, Minn Dec. 31.1920 Dec. 31.1921 Dec. 31,1922 Minneapolis, Minn.. St. Paul, Minn Lake Linden, Mich. Dec. 31,1920 Dec. 31.1921 Dec. 31,1922 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.) Class A: C. E. Burnham J.C.Mitchell W. J. Bailey Class B: Harry W. Gibson T. C. Byrne M. L. McClure Class C.Asa E . Ramsay R. H. Malone F. W. Fleming Norfolk, Nebr Denver, Colo Atchison, Kans Dec. 31.1920 Dec. 31.1921 Dec. 31,1922 Muskogee, Okla Omaha, Nebr Kansas City, Mo Dec. 31,1920 Dec. 31.1921 Dec. 31,1922 do. Denver, Colo. Kansas City, Mo. Dec. 31,1920 Dec. 31,1921 Dec. 31.1922 DISTRICT NO. 10—DENVER BRANCH OF THE F E D E R A L RESERVE BANK OF KANSAS CITY. [C. A. Burkhardt, manager.] C C A C C A John Alva Parks Foster Burkhardt Evans Adams Denver Colo ....do do .. . do Pueblo Colo Dec. 31,1920 Do Do. Do Do. EXHIBIT N 287 DIRECTORY. Officers and Directors of Federal Reserve Banks—Continued. DISTRICT NO 10—OMAHA BRANCH OF THE F E D E R A L RESERVE BANK OF KANSAS. CITY. [O. T. Eastman, manager.] Director. Residence. Term expires. Omaha, Nebr Cheyenne, Wyo Omaha, Nebr Lincoln, Nebr Nebraska City, Nebr Luther Drake Oeoreje E. Abbott 0J T. Eastman I . L, Hall R 0 Marnell Dec. 31,1920 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: E. K. Smith John T. Scott B. A. McKinney Class B: J J Culbertson Frank Kell Marion Sansom Class C: W F Ramsey W. B. Newsome H. 0 . Wooten . . . . Shreveport, La Houston, Tex Durant, Okla Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 Paris Tex Wichita Falls, Tex Fort Worth, Tex Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 Dallas Tex do Abilene, Tex Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 DISTRICT NO. 11—EL PASO BRANCH OF THE F E D E R A L RESERVE BANK OF DALLAS. [R. R. Gilbert, manager.] U. S. Stewart A. F. Kerr R. R. Gilbert W. W. Turney A. P. Coles E1 Paso Tex .do . . . . do do . . . . do Dec. 31,1920 Do. Do. Do. Do. DISTRICT NO. 11—HOUSTON BRANCH OF THE F E D E R A L RESERVE BANK OF DALLAS [Sam R. Lawder, manager.] Frank Andrews Guy M. Bryan Sam R. Lawder J. C.Chidsey J. J. Davis Houston, Tex do do do Galveston, Tex 1 Dec. 31,1920 Do. Do. Do. Do. DISTRICT NO. 12—FEDERAL RESERVE BANK OF SAN FRANCISCO. Jon n Perrin, chairman and Federal Reserve agent; Walton N. Moore, deputy chairman; John U. Calkins, governor.] Class A: J. E. Fishburn M. A. Buchan C. K. Mclntosh Class B: A. B. C. Dohrmann J. A. McGregor E . H . Cox Class C: John Perrin Walton N. Moore Edward Elliott Los Angeles, Calif Palo Alto Calif San Francisco Calif . . . . do . do . . . . do . . . . . . do do Berkelev, Calif Dec. 31,1920 Dec. 31 1921 Dec. 31,1922 Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 Dec. 31,1920 Dec. 31,1921 Dec. 31,1922 DISTRICT NO. 12—PORTLAND BRANCH OF THE F E D E R A L RESERVE BANK OF SAN FRANCISCO. [C. L. Lamping, manager.] Edward Cookingham. J. C. Ainsworth C. L. Lamping Nathan Strauss Joseph N. Teal Portland, Oreg.. .do... ... .do. .do. .do. Dec. 31,1920 Do. Do. Do. Do. 288 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Officers and Directors of Federal Reserve Banks—Continued. DISTRICT NO. 12—SEATTLE BRANCH OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO. [C. J. Shepherd, manager.] Director. M. F. Backus M. A. Arnold C. J. Shepherd C.H.Clarke Chas. E. Peabody Residence. ' ! Seattle, Wash do do do do I Term expires. Dec. 31,1920 Do. Do. Do. Do. DISTRICT NO. 12—SPOKANE BRANCH OF THE FEDERAL RESERVE 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 Hooper, Wash.. Spokane, Wash. Dec. 31,1920 Do. Do. Do. Do. DISTRICT NO. 12—SALT LAKE CITY BRANCH OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO. [Chas. H. Stewart, acting manager.] L. H. Farnsworth Chas. H. Stewart Chapin A. Day G. G. Wright Lafayette Hanchett Salt Lake City, Utah. do ! Ogden, Utah j Idaho Falls, Utah I Salt Lake City, Utah. Dec. 31,1920 Do. Do. Do. Do. DISTRICT NO. 12—LOS ANGELES BRANCH OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO.i [Ira Clerk, acting manager.] A. J. Waters J. F. Sartori Ira Clerk I. B. Newton Henry M. Robinson Los Angeles, Calif do do do | Pasadena, Calif i i Open for business Jan. 2,1920. Dec. 31,1920 Do. Do. Do. Do. Exhibit O.—FEDERAL ADVISORY COUNCIL. District No. 1.—Philip Stockton, president Old Colony Trust Co., 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.—Oscar Wells, president First National Bank, Birmingham, Ala. 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.—R. L. Ball, chairman of board, National Bank of Commerce, San Antonio, Tex. ct No. 12.—A. L. Mills, president First National Bank, Portland, Oreg. EXHIBIT P—AMENDMENTS TO ACT. 289 Exhibit P.—AMENDMENTS TO THE FEDERAL RESERVE ACT AND REVISED STATUTES, [PUBLIC—No. 329—65TH CONGRESS.] [S. 5236.] AN ACT To amend sections seven, ten, and eleven of the Federal Reserve act, and section fifty-one hundred and seventy-two, Revised Statutes of the United States. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That that part of the first paragraph of section seven of the Federal Reserve act which reads as follows: ' 'After the aforesaid dividend claims have been fully met, all the net earnings 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 it shall amount to forty per centum of the paid-in capital stock of such bank," be amended to read as follows: "After the aforesaid dividend claims have been fully met, the net earnings shall be paid to the United States as a franchise tax except that the whole of such net earnings, including those for the year ending December thirty-first, nineteen hundred and eighteen, shall be paid into a surplus fund until it shall amount to one hundred per • centum of the subscribed capital stock of such bank, and that thereafter ten per centum of such net earnings shall be paid into the surplus." SEC. 2. That that part of section ten of the Federal Reserve act which reads as follows: "The members of said board, the Secretary of the Treasury, the Assistant Secretaries of the Treasury, and the Comptroller of the Currency, shall be ineligible during the time they are in office and for two years thereafter to hold any office, position, or employment in any member bank," be amended to read as follows: "The Secretary of the Treasury and the Comptroller of the Currency shall be ineligible during the time they are in office and for two years thereafter to hold any office, position, or employment in any member bank. The appointive members of the Federal Reserve Board shall be ineligible during the time they are in office and for two years thereafter to hold any office, position, or employment in any member bank, except that this restriction shall not apply to a member who has served the full term for which he was appointed." SEC. 3. That section eleven of the Federal Reserve act as amended by the act of September iW^ifeh, nineteen hundred and sixteen, be further amended by striking out the whole* (rf'subsection (m) and by substituting therefor a subsection to read as follows: "(m) Upon the affirmative vote of not less than five of its members, the Federal Reserve Board shall have power to permit Federal Reserve Banks to discount for any member bank notes, drafts, or bills of exchange bearing the signature or endorsement of any one borrower in excess of the amount permitted by section nine and section thirteen of this act, but in no case to exceed twenty per centum of the member bank's capital and surplus: Provided, however, That all such notes, drafts, or bills of exchange discounted for any member bank in excess of the amount permitted under such sections shall be secured by not less than a like face amount of bonds or notes of the United States issued since April twenty-fourth, nineteen hundred and seventeen, or certificates of indebtedness of the United States: Provided further, That the provisions of this subsection (m) shall not be operative after December thirty-first, nineteen hundred and twenty." SEC. 4. That section fifty-one hundred and seventy-two, Revised Statutes of the United States, be amended to read as follows: "SEC. 5172. That in order to furnish suitable notes for circulation, 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 counterfeiting and fraudulent alterations, and shall have printed therefrom and numbered such quantity of circulating notes in blank, or bearing engraved signatures of officers as herein provided, of the denominations of $1, $2, $5, $10, $20, $50, $100, $500, and $1,000, as may be required to supply the associations entitled to receive the same. Such notes shall express upon their face that they are secured by United States bonds deposited with the Treasurer of the United States, by the written or engraved signatures of the Treasurer and Register, and by the imprint of the seal of the Treasury; and shall also express upon their face the promise of the association receiving the same to pay on demand, attested by the written or engraved signatures of the president or vice president and cashier; and shall bear such devices and such other statements and shall be in such form as the Secretary of the Treasury shall, by regulation, direct." Approved, March 3, 1919. 290 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. [PUBLIC—No. 48—66TH CONGRESS.] IS. 2395.] AN ACT Amending section 25 of the Act approved December 23, 1913, known as the Federal Reserve act, as amended by the act approved September 7, 1916. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 25 of the act approved December 23, 1913, known as the Federal Reserve act, as amended by the act approved September 7, 1916, be further amended by the addition of the following paragraph at the end of subparagraph 2 of the first paragraph, after the word "possessions ": "Until January 1, 1921, any national banking association, without regard to the amount of its capital and surplus, may file application with the Federal Reserve Board for permission, upon such conditions and under such regulations as may be prescribed by said board, to invest an amount not exceeding in the aggregate 5 per centum of its paid-in capital and surplus in the stock of one or more corporations chartered or incorporated under the laws of the United States or of any State thereof, and, regardless of its location, principally engaged in such phases of international or foreign financial operations as may be necessary to facilitate the export of goods, wares, or merchandise from the United States or any of its dependencies or insular possessions to any foreign country: Provided, hoivever, That in no event shall the total investments authorized by this section by any one national bank exceed 10 per centum of its capital and surplus." SEC. 2. That paragraph 2 of said section be amended by adding after the word "banking," in line three, the words "or financial," so that the sentence will read: "Such application shall specify the name and capital of the banking association filing it, the powers applied for, and the place or places where the banking or financial operations proposed are to be carried on." SEC. 3. That paragraph 3 of said section be amended by striking put the words "subparagraph 2 of the first paragraph of this section" and inserting in lieu thereof the word "above," so that the paragraph will read: "Every national banking association operating foreign branches shall be required to furnish information concerning the condition of such branches to the Comptroller of the Currency upon demand, and every member bank investing in the capital stock of banks or corporations described above shall be required to furnish information concerning the condition of such banks or corporations to the t ^e$£ral Reserve Board upon demand, and the Federal Reserve Board may order special examinations of the said branches, banks, or corporations at such time or times as it may deem best." Approved, September 17, 1919. [PUBLIC—No. 106—66TH CONGRESS.] [S. 2472.] AN ACT To amend the act approved December 23, 1913, known as the Federal Reserve act. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the act approved December 23., 1913, known as the Federal Reserve act, as amended, be further amended by adding a new section as follows: "BANKING CORPORATIONS AUTHORIZED TO DO FOREIGN BANKING BUSINESS. "SEC. 25 (a). Corporations to be organized for the purpose of engaging in international or foreign banking or other international or foreign financial operations, or in banking or other financial operations in a dependency or insular possession of the United States, either directly or through the agency, ownership, or control of local institutions in foreign countries, or in such dependencies or insular possessions as provided by this section, and to act when required by the Secretary of the Treasury as fiscal agents of the United States, may be formed by any number of natural persons, not less in any case than five. *' Such persons shall enter into articles of association which shall specify in general terms the objects for which the association is formed and may contain any other provisions not inconsistent with law which the association may see fit to adopt for the regulation of its business and the conduct of its affairs. '' Such articles of association shall be signed by all of the persons intending to paricipate in the organization of the corporation and, thereafter, shall be forwarded to the Federal Reserve Board and shall be filed and preserved in its office. The person EXHIBIT P—AMENDMENTS TO ACT. 291 signing the said articles of association shall, under their hands, make an organization certificate which shall specifically state: "First. The name assumed by such corporation, which shall be subject to the approval of the Federal Reserve Board. Second. The place or places where its operations are to be carried on. "Third. The place in the United States where its home office is to be located. "Fourth. The amount of its capital stock and the number of shares into which the same shall be divided. "Fifth. The names and places of business or residence of the persons executing the certificate and the number of shares to which each has subscribed. "Sixth. The fact that the certificate is made to enable the persons subscribing the same, and all other persons, firms, companies, and corporations, who or which may thereafter subscribe to or purchase shares of the capital stock of such corporation, to avail themselves of the advantages of this section. "The persons signing the organization certificate shall duly acknowledge the execution thereof before a judge of some court of record or notary public, who shall certify thereto under the seal of such court or notary, and thereafter the certificate shall be forwarded to the Federal Reserve Board to be filed and preserved in its office. Upon duly making and filing articles of association and an organization certificate, and after the Federal Reserve Board has approved the same and issued a permit to begin business, the association shall become and be a body corporate, and as such and in the name designated therein shall have power to adopt and use a corporate seal, which may be changed at the pleasure of its board of directors; to have succession for a period of twenty years unless sooner dissolved by the act of the shareholders owning two-thirds of the stock or by an act of Congress or unless its franchises become forfeited by some violation of law; to make contracts; to sue and be sued, complain, and defend in any court of law or equity; to elect or appoint directors, all of whom shall be citizens of the United States; and, by its board of directors, to appoint such officers and employees as may be deemed proper, define their authority and duties, require bonds of them, and fix the penalty thereof, dismiss such officers or employees, or any thereof, at pleasure and appoint others to fill their places; to prescribe, by its board of directors, by-laws not inconsistent with law or with the regulations of the Federal Reserve Board regulating the manner in which its stock shall be transferred, its directors elected or appointed, its officers and employees appointed, its property transferred, and the privileges granted to it by law exercised and enjoyed. "Each corporation so organized shall have power, under such rules and regulations as the Federal Reserve Board may prescribe: "(a) To purchase, sell, discount, and negotiate, with or without its indorsement or guaranty, notes, drafts, checks, bills of exchange, acceptances, including bankers' acceptances, cable transfers, and other evidences of indebtedness: to purchase and sell, with or without its indorsement or guaranty, securities, including the obligations of the United States or of any State thereof but not including shares of stock in any corporation except as herein provided; to accept bills or drafts drawn upon it subject to such limitations and restrictions as the Federal Reserve Board may impose; to issue letters of credit; to purchase and sell coin, bullion, and exchange; to borrow and to lend money; to issue debentures, bonds, and promissory notes under such general conditions as to security and such limitations as the Federal Reserve Board may prescribe, but in no event having liabilities outstanding thereon at any one time exceeding ten times its capital stock and surplus; to receive deposits outside of the United States and to receive only such deposits within the United States as may be incidental to or for the purpose of carrying out transactions in foreign countries or dependencies or insular possessions of the United States; and generally to exercise such powers as are incidental to the powers conferred by this act or as may be usual, in the determination of the Federal Reserve Board, in connection with the transaction of the business of banking or other financial operations in the countries, colonies, dependencies, or possessions in which it shall transact business and not inconsistent with the powers specifically granted herein. Nothing contained in this section shall be construed to prohibit the Federal Reserve Board, under its power to prescribe rules and regulations, from limiting the aggregate amount of liabilities of any or all classes incurred by the corporation and outstanding at any one time. Whenever a corporation organized under this section receives deposits in the United States authorized by this section it shall carry reserves in such amounts as the Federal Reserve Board may prescribe, but in no event less than 10 per centum of its deposits. " (b) To establish and maintain for the transaction of its business branches or agencies in foreign countries, their dependencies or colonies, and in the dependencies or insular possessions of the United States, at such places as may be approved by the Federal Reserve Board and under such rules and regulations as it may prescribe, including countries or dependencies not specified in the original organization certificate. 292 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. "(c) With the consent of the Federal Reserve Board to purchase and hold stock or other certificates of ownership in any other corporation organized under the provisions of this section, or under the laws of any foreign country or a colony or dependency thereof, or under the laws of any State, dependency, or insular possession of the United States but not engaged in the general business of buying or selling goods, wares, merchandise or commodities in the United States, and not transacting any business in the United States except such as in the judgment of the Federal Reserve Board may be incidental to its international or foreign business: Provided,, however, That, except with the approval of the Federal Reserve Board, no corporation organized hereunder shall invest in any one corporation an amount in excess of 10 per centum of its own capital and surplus, except in a corporation engaged in the business of banking, when 15 per centum of its capital and surplus may be so invested: Provided further, That no corporation organized hereunder shall purchase, own, or hold stock or certificates of ownership in any other corporation organized hereunder or under the laws of any State which is in substantial competition therewith, or which holds stock *or certificates of ownership in corporations which are in substantial competition with the purchasing corporation. " Nothing contained herein shall prevent corporations organized hereunder from purchasing and holding stock in any corporation where such purchase shall be necessary to prevent a loss upon a debt previously contracted in good faith; and stock so purchased or acquired in corporations organized under this section shall within six months from such purchase be sold or disposed of at public or private sale unless the time to so dispose of same is extended by the Federal Reserve Board. "No corporation organized under this section shall carry on any part of its business in the United States except such as, in the judgment of the Federal Reserve Board, shall be incidental to its international or foreign business: And provided further, That except such as is incidental and preliminary to its organization no such corporation shall exercise any of the powers conferred by this section until it has been duly authorized by the Federal Reserve Board to commence business as a corporation organized under the provisions of this section. "No corporation organized under this section shall engage in commerce or trade in commodities except as specifically provided in this section, nor shall it either directly or indirectly control or fix or attempt to control or fix the price of any such commodities. The charter of any corporation violating this provision shall be subject to forfeiture in the manner hereinafter provided in this section. It shall be unlawful for any director, officer, agent, or employee of any such corporation to use or to conspire to use the credit, the funds, or the power of the corporation to fix or control the price of any such commodities, and any such person violating this provision shall be liable to a fine of not less than $1,000 and not exceeding $5,000 or imprisonment not less than one year and not exceeding five years, or both, in the discretion of the court. "No corporation shall be organized under the provisions of this section with a capital stock of less than $2,000,000, one-quarter of which must be paid in before the corporation may be authorized to begin business, and the remainder of the capital stock of such corporation shall be paid in installments of at least 10 per centum on the whole amount to which the corporation shall be limited as frequently as one installment at the end of each succeeding two months from the time of the commencement of its business operations until the whole of the capital stock shall be paid in. The capital stock of any such corporation may be increased at any time, with the approval of the Federal Reserve Board, by a vote of two-thirds of its shareholders or by unanimous consent in writing of the shareholders without a meeting and without a formal vote, but any such increase of capital shall be fully paid in within ninety days after such approval; and may be reduced in like manner, provided that in no event shall it be less than $2,000,000. No corporation, except as herein provided, shall during the time it shall continue its operations withdraw or permit to be withdrawn, either in the form of dividends or otherwise, any portion of its capital. Any national banking association may invest in the stock of any corporation organized under 'the provisions of this section, but the aggregate amount of stock held in all corporations engaged in business of the kind described in this section and in section 25 of the Federal Reserve act as amended shall not exceed 10 per centum of the subscribing bank's capital and surplus. "A majority of the shares of the capital stock of any such corporation shall at all times be held and owned by citizens of the United States, by corporations the controlling interest in which is owned by citizens of the United States, chartered under the laws of the United States or of a State of the United States, or by firms or companies, the controlling interest in which is owned by citizens of the United States. The provisions of section 8 of the act approved October 15,1914, entitled 'An act to supplement existing laws against unlawful restraints and monopolies, and for other purposes/ Digitized foras^amended FRASER by the acts of May 15, 1916, and September 7, 1916, shall be construed to EXHIBIT P—AMENDMENTS TO ACT. 293 apply to the directors, other officers, agents, or employees of corporations organized under the provisions of this section: Provided, however, That nothing herein contained shall (1) prohibit any director or other officer, agent or employee of any member bank, who has procured the approval of the Federal Reserve Board from serving at the same time as a director or other officer, agent or employee of any corporation organized under the provisions of this section in whose capital stock such member bank shall have invested; or (2) prohibit any director or other officer, agent, or employee of any corporation organized under the provisions of this section, who has procured the approval of the Federal Reserve Board, from serving at the same time as a director or other officer, agent or employee of any other corporation in whose capital stock such first-mentioned corporation shall have invested under the provisions of this section. "No member of the Federal Reserve Board shall be an officer or director of any corporation organized under the provisions of this section, or of any corporation engaged in similar business organized under the laws oi any State, nor hold stock in any such corporation, and before entering upon his duties as a member of the Federal Reserve Board he shall certify under oath to the Secretary of the Treasury that he has complied with this requirement. ' ' Shareholders in any corporation organized under the provisions of this section shall be liable for the amount of their unpaid stock subscriptions. No such corporation shall become a member of any Federal reserve bank. "Should any corporation organized here under violate or fail to comply with any of the provisions of this section, all of its rights, privileges, and franchises derived herefrom may thereby be forfeited. Before any such corporation shall be declared dissolved, or its rights, privileges, and franchises forfeited, any noncompliance with, or violation of such laws shall, however, be determined and adjudged by a court of the United States of competent jurisdiction, in a suit brought for that purpose in the district or territory in which the home office of such corporation is located, which suit shall be brought by the United States at the instance of the Federal Reserve Board or the Attorney General. Upon adjudication of such noncompliance or violation, each director and officer who participated in, or assented to, the illegal act or acts, shall be liable in his personal or individual capacity for all damages which the said corporation shall have sustained in consequence thereof. No dissolution shall take away or impair any remedy against the corporation, its stockholders, or officers for any liability or penalty previously incurred. "Any such corporation may go into voluntary liquidation and be closed by a vote of its shareholders owning two-thirds of its stock. "Whenever the Federal Reserve Board shall become satisfied of the insolvency of any such corporation, it may appoint a receiver who shall take possession of all of the property and assets of the corporation and exercise the same rights, privileges, powers, and authority with respect thereto as are now exercised by receivers of national banks appointed by the Comptroller of the Currency of the United States: Provided, hoivever, That the assets of the corporation subject to the laws of other countries or jurisdictions shall be dealt with in accordance with the terms of such laws. "Every corporation organized under the provisions of this section shall hold a meeting of its stockholders annually upon a date fixed in its by-laws, such meeting to be held at its home office in the United States. Every such corporation shall keep at Us home office books containing the names of all stockholders thereof, and the names nd addresses ot the members of its board of directors, together with copies of all reports made by it to the Federal Reserve Board. Every such corporation shall make reports to the Federal Reserve Board at such times and in such form as it may require; and shall be subject to examination once a year and at such other times as may be deemed necessary by the Federal Reserve Board by examiners appointed by the Federal Reserve Board, the cost of such examinations, including the compensation of the examiners, to be fixed by the Federal Reserve Board and to be paid by the corporation examined, '' The directors of any corporation organized under the provisions of this section may, semiannually, declare a dividend of so much of the net profits of the corporation as they shall judge expedient; but each corporation shall, before the declaration of a dividend, carry one-tenth of its net profits of the preceding half year to its surplus fund until the same shall amount to 20 per centum of its capital stock. "Any corporation organized under the provisions of this section shall be subject to tax by the State within which its home office is located in the same manner and to the same extent as other corporations organized under the laws of that State which are transacting a similar character of business. The shares of stock in such corporation shall also be subject to tax as the personal property of the owners or holders thereof in the same manner and to the same extent as the shares of stock in similar State corporations. 294 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. "Any corporation organized under the provisions of this section may at any time within the two years next previous to the date of the expiration of its corporate existence, by a vote of the shareholders owning two-thirds of its stock, apply to the Federal Reserve Board for its approval to extend the period of its corporate existence for a term of not more than twenty years, and upon certified approval of the Federal Reserve Board such corporation shall have its corporate existence for such extended period unless sooner dissolved by the act of the shareholders owning two-thirds of its stock, or by an Act of Congress or unless its franchise becomes forfeited by some violation of law. "Any bank or banking institution, principally engaged in foreign business, incorporated by special law of any State or of the United States or organized under the general laws of any State or of the United States and having an unimpaired capital sufficient to entitle it to become a corporation under the provisions of this section may, by the vote of the shareholders owning not less than two-thirds of the capital stock of such bank or banking association, with the approval of the Federal Reserve Board, be converted into a Federal corporation of the kind authorized by this section with any name approved by the Federal Reserve Board: Provided, however, That said conversion shall not be in contravention of the State law. In such case the articles of association and organization certificate may be executed by a majority of the directors of the bank or banking institution, and the certificate shall declare that the owners of at least two-thirds of the capital stock have authorized the directors to make such certificate and to change or convert the bank or banking institution into a Federal corporation. A majority of the directors, after executing the articles of association and the organization certificate, shall have power to execute all other papers and to do Whatever may be required to make its organization perfect and complete as a Federal corporation. The shares of any such corporation may continue to be for the same amount each as they were before the conversion, and the directors may continue to be directors of the corporation until others are elected or appointed in accordance with the provisions of this section. When the Federal Reserve Board has given to such corporation a certificate that the provisions of this section have been complied with, such corporation and all its stockholders, officers, and employees, shall have the same powers and privileges, and shall be subject to the same duties, liabilities, and regulations, in all respects, as shall have been prescribed by this section for corporations originally organized hereunder. "Every officer, director, clerk, employee, or agent of any corporation organized under this section who embezzles, abstracts, or willfully misapplies any of the moneys, funds, credits, securities, evidences of indebtedness or assets of any character of such corporation; or who, without authority from the directors, issues or puts forth any certificate of deposit, draws any order or bill of exchange, makes any acceptance, assigns any note, bond, debenture, draft, bill of exchange, mortgage, judgment, or decree; or who makes any false entry in any book, report, or statement of such corpo1ration with intent, in either case, to injure or defraud such corporation or any other company, body politic or corporate, or any individual person, or to deceive any officer of such corporation, the Federal Reserve Board, or any agent or examiner appointed to examine the affairs of any such corporation; and every receiver of any such corporation and every clerk or employee of such receiver who shall embezzle, abstract, or willfully misapply or wrongfully convert to his own use any moneys, funds, credits, or assets of any character which may come into his possession or under his control in the execution of his trust or the performance of the duties of his employment; and every such receiver or clerk or employee of such receiver who shall, with intent to injure or defraud any person, body politic or corporate, or to deceive or mislead the Federal Reserve Board, or any agent or examiner appointed to examine the affairs of such receiver, shall make any false entry in any book, report, or record of any matter connected with the duties of such receiver; and every person who with like intent aids or abets any officer, director, clerk, employee, or agent of any corporation organized under this section, or receiver or clerk or employee of such receiver as aforesaid in any violation of this section, shall upon conviction thereof be imprisoned for not less than two years nor more than ten years, and may also be fined not more than $5,000, in the discretion of the court. "Whoever being connected in any capacity with any corporation organized under this section represents in any way that the United States is liable for the payment of any bond or other obligation, or the interest thereon, issued or incurred by any corporation organized hereunder, or that the United States incurs any liability in respect of any act or omission of the corporation, shall be punished by a fine or not more than $10,000 and by imprisonment for not more than five years." Approved, December 24, 1919. EXHIBIT P AMENDMENTS TO ACT. 295 [PUBLIC—No. 62-—66TH CONGRESS.] [H. R. 7478.] AN ACT To amend sections 5200 and 5202 of the Revised Statutes of the United States as amended by acts of June 22, 1906, and September 24, 1918. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 5200 of the Revised Statutes of the United States as amended by the acts of June 22, 1906, and September 24, 1918, be further amended to read as follows: "SEC. 5200. The total liabilities to any association of any person or of any company, corporation, or firm for money borrowed, including in the liabilities of a company or firm the liabilities of the several members thereof, shall at no time exceed 10 per centum of the amount of the capital stock of such association, actually paid in and unimpaired, and 10 per centum of its unimpaired surplus fund: Provided, however, That (1) the discount of bills of exchange drawn in good faith against actually existing values, including drafts and bills of exchange secured by shipping documents conveying or securing title to goods shipped, and including demand obligations when secured by documents covering commodities in actual process of shipment, and also including bankers' acceptances of the kinds described in section 13 of the Federal Reserve act, (2) the discount of commercial or business paper actually owned by the person, company, corporation, or firm negotiating the same, (3) the discount of notes secured by shipping documents, warehouse receipts, or other such documents conveying or securing title covering readily marketable nonperishable staples, including live stock, when the actual market value of the property securing the obligation is not at any time less than 115 per centum of the face amount of the notes secured by such documents and when such property is fully covered by insurance, and (4) the discount of any note or notes secured by not less than a like face amount of bonds or notes of the United States issued since April 24, 1917, or certificates of indebtedness of the United States, shall not be considered as money borrowed within the meaning of this section. The total liabilities to any association, of any person or of any corporation, or firm, or company, or the several members thereof upon any note or notes purchased or discounted by such association and secured by bonds, notes, or certificates of indebtedness as described in (4) hereof shall not exceed (except to the extent permitted by rules and regulations prescribed by the Comptroller of the Currency, with the approval of the Secretary of the Treasury) 10 per centum of such capital stock and surplus fund of such association and the total liabilities to any association of any person or of any corporation, or firm, or company, or the several members thereof for money borrowed, including the liabilities upon notes secured in the manner described under (3) hereof, except transactions (1), (2), and (4), shall not at any time exceed 25 per centum of the amount of the association's paid-in and unimpaired capital stock and surplus. The exception made under (3) hereof shall not apply to the notes of any one person, corporation or firm or company, or the several members thereof for more than six months in any consecutive twelve months." SEC. 2. That section 5202 of the Revised Statutes of the United States as amended by section 20, Title I, of the act approved April 5, 1918, be further amended so as to read as follows: "SEC. 5202. No national banking association shall at any time be indebted, or in any way liable, to an amount exceeding the amount of its capital stock at such time actually paid in and remaining undiminished by losses or otherwise, except on account of demands of the nature following: "First. Notes of circulation. "Second. Moneys deposited with or collected by the association. "Third. Bills of exchange or drafts drawn against money actually on deposit to the credit of the association, or due thereto. "Fourth. Liabilities to the stockholders of the association for dividends and reserve profits. "Fifth. Liabilities incurred under the provisions of the Federal Reserve act. "Sixth. Liabilities incurred under the provisions of the War Finance Corporation act. "Seventh. Liabilities created by the indorsement of accepted bills of exchange payable abroad actually owned by the indorsing bank and discounted at home or abroad." Approved, October 22, 1919. PART II. REPORTS OF FEDERAL RESERVE AGENTS TO FEDERAL RESERVE BOARD. 297 DISTRICT NO. 1.—BOSTON. FREDERIC H. CURTISS, Chairman and Federal Reserve Agent. INTRODUCTION. Active hostilities with the Central Powers of Europe ceased with the signing of the armistice on November 11, 1918, but the aftereffects of the great World War dominated finance and industry in this Federal Reserve district during the entire year of 1919. Well into the new year the industries of New England were occupied on Government orders and the settlement and adjustment of Government contracts, but gradually, as spring approached, industries were able to readjust themselves from a war to a peace basis, domestic demands bringing increasing business, so that throughout the year almost all industries were running at top notch, which, with increasing costs in labor and raw material, called for unusually heavy credit expansion. This demand for credit was reflected in the loans of the Federal Reserve Bank of Boston. During the year there was but one public offering of long-term securities7 that of the fifth or Victory loan in April, 1919, but shorttime borrowings of the Treasury Department on loan and tax certificates of indebtedness were continuous throughout the year, and these short-time borrowings, together with the new income and excess-profits taxes, placed a continuous and insistent demand upon the banks of the district which, with the increased commercial demands, made recourse to the Federal Reserve Bank heavier than in any previous year. In order, therefore, to maintain reserves above the legal limit this bank was obliged frequently to rediscount with other Federal Reserve Banks of the system; on the other hand, this bank did not rediscount for any other Federal Reserve Bank during the entire year. REVIEW OF INDUSTRIAL CONDITIONS DURING 1919. The year opened with retail trade extremely good, stimulated by patronage of wage earners who had shown no disposition to curtail their expenditures and whose purchases included many luxuries—a condition which offered opportunity for retailers to dispose of stocks at prevalent high prices: but in view of uncertainty concerning the future dealers were generally cautious in placing orders and replenishing depleted inventories. By another month, however, there was evidently throughout the entire district less apprehension regarding future conditions, confidence was beginning to return, and there was more general inclination to enter into future commitments; by April the turn in tke tide was increasingly evident each week, and the impression was becoming general that no lower commodity price level was likely to be established for some time to come. Buyers were encouraged to place 178983—20 20 299 300 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. orders with more confidence and manufacturers went ahead with less hesitation. The summer found manufacturers and merchants in practically all lines doing a large business, and buyers who had withheld orders awaiting lower prices were now purchasing heavily in anticipation of costs advancing still further; moreover, the removal of numerous Government restrictions had gone far toward substantiating the belief that the price level would be no lower until production was sufficient to fill the vacuum in inventories created during the war. The general business situation was, nevertheless, unsettled, for, in spite of boundless activity and surface prosperity, the industrial unrest by the late summer overshadowed all other factors. The constant threat of strikes, and the interference with transportatioi facilities, traction and railroad, had begun to be a burden on all lines~* of industry, causing a general slowing down, which, however, was traceable more to apprehension on the part of the manufacturers than to any direct slackening of demand for goods. The year ended with general business conditions in the New England district reflecting unprecedented prosperity as defined in terms of high wages and purchasing power, high prices, orders booked by manufacturers in some cases far into 1920, projected plans for expansion of plants and equipment which in some cases are already taking the form of actual building construction, and the absence of serious or widespread dislocation of working relationship between employer and employee in any of the great basic industries. Practically the only exception to this general condition of business activity is in the field of dwelling-house construction, which has shown no broad recovery from the stagnation of the war period. Commercial failures have been less in number and less in volume of liabilities than in the two previous years. Bank clearings in the larger cities emphasize the increasing business activity of the year. The business through the port of Boston shows some change, although it must be borne in mind that Boston is one of the terminals for the entire country. BALANCE SHEET. The comparative statement of the condition of the bank on December 31 for the years 1917, 1918, and 1919, as shown in Exhibit C, demonstrates the large increase in the operations of the bank. Total resources amounting to 521 million, it will be noted, are over twice those of 1917, not including the increase in rediscounts with other Federal Reserve Banks. FINANCIAL RESULTS OF OPERATION. While the heavy increase in bills discounted for member banks and the high discount rates maintained during the year have brought increased earnings to the bank, the increase on the other hand in service furnished to member banks, more particularly in connection with currency transactions and the handling of checks and other items, has entailed heavy increases in expense. Dividends at the rate of 6 per cent per annum were paid on the stock holdings of member banks on June 30 and December 31 and $5,362,934.40 was added to the surplus fund, making the total surplus fund $8,359,034.40, DISTRICT NO. 1—BOSTON. 301 or 59 per cent of the subscribed capital of the bank. Under the amendment to the Federal Reserve Act of March 3, 1919, Federal Reserve Banks may accumulate a surplus fund equal to their subscribed capital, and thereafter 10 per cent of net earnings. The success of a Federal Reserve Bank should not be measured, however, by its earning capacity, but by the assistance it furnishes to the commercial and agricultural interests of the community it serves. DISCOUNT RATES. As in the immediate war period, the policy of rates of discount during the year 1919 has been dominated by the necessities of the Treasury Department. Changes in rates were slight during the year. The preferential rate of 4 per cent on loans secured by and carrying the coupon rate of the fourth Liberty loan bonds was withdrawn February 15. The rate in connection with loans secured by the bonds of the War Finance Corporation, automatically, in accordance with the provision of that act, went into effect April 12, with the first offering of the bonds of that corporation, a rate so high that it was used but to a very small extent. There were no further changes in discount rates, even in connection with the flotation of the fifth or Victory Liberty loan, until November 4, when the preferential rates on maturities of 15 days or less were discontinued and rates on loans secured by long-term Government obligations slightly increased, the rates on loans secured by tax and loan certificates of indebtedness being continued in order to assist in placing the issues of those securities which the Treasury Department was offering from time to time. On December 12 the rates on all classes of paper, including trade acceptances and loans against United States Government longterm securities, were raised to the commercial rate of 4f per cent, the rates being still continued on loans secured by certificates of indebtedness at the interest rate which such securities bore—4J to 4J per cent. The gradual raising of rates on loans secured by longterm Government securities has had some effect in keeping the volume of that class of loans out of the banks, for in the latter months of the year when the discounts of the bank increased heavily the increase was" almost entirely in commercial paper. LOAN AND DISCOUNT OPERATIONS. The year 1918 ended with the loans of this bank at nearly their maximum, a point which proved to be almost the low point of the year 1919. The high state of industrial activity during the war and the character of the subscriptions to the fourth Liberty loan which had been placed under a ''borrow to buy" policy were the principal causes for the year opening with loans high and with reserves low. While in 1918 there had been an improvement in general conditions, final payments on Liberty loan bonds and further issues of certificates of indebtedness, together with the slow adjustment of payments on account of Government contracts, soon brought loans to a new high mark. The loans continued at a high level until the middle of July. As payments began to come in on the Victory Liberty 302 ANHTJAL REPORT OF THE FEDERAL RESERVE BOARD. loan, the first of which on June 3 brought in $116,000,000, it became evident that this loan had been placed more largely in the hands of investors than previous loans and had not been subscribed to so large an extent on borrowed money, as partial-payment plans had been encouraged. Financing by means of certificates of indebtedness made it possible for banks to meet their payments without recourse to this bank for any considerable amount of new loans. Even the heavy tax payment of $140,000,000 in June was met easily and not reflected in the loans, as redemption of certificates of indebtedness provided much of the necessary money. Ordinarily, the demands of the mills for money with which to purchase raw materials appears in the late summer or early fall. This year price uncertainty delayed the demand two or three months. The same held true in the case of other seasonal demands. In August, as all indications were that this demand would hold off, and as reserves were at the high point of the year, being 55.6 per cent on August 15, this bank became a free buyer of acceptances. This policy was continued until early in November when, although still in the market, acceptance rates were raised above the discount rate. By November a marked change had occurred in the demands made upon banks. The ever-increasing price level, the financing of local taxes, the heavy purchases of raw material, the final payments on subscriptions to Victory notes, high stock exchange call rates in New York, rates which attracted the balances the country banks had been carrying on deposit with their Boston correspondents—all together greatty augmented the demands made on this bank and necessitated heavy rediscounting with other Federal Reserve Banks. From then on to the end of the year an increasing demand on the part of commercial borrowers caused a marked change in the character of the loans. Commercial paper discounted, which had averaged under $10,000,000 up to November 1, rose to $63,000,000 by the end of the year, an increase caused in part by the changes in discount rates on November 4 and December 12, which tended to eliminate the preferential rate that had led commercial borrowers to use United States obligations rather than their unsecured notes when seeking accommodation. Early in December payment of $30,000,000 in this district on the part of the United States Railroad Administration to the Boston & Maine Railroad brought an easing of conditions which, however, lasted but a few days, the money being rapidly distributed to other districts. From then on commercial demands and Government financing necessitated further rediscounts with other Federal Reserve Banks. The December 15 tax payment in this district was directly felt in the loans of this bank, which at the close of the year rose to $289,000,000, including rediscounts, or almost $85,000,000 higher than the previous year. This rise occurred notwithstanding the fact that constant pressure had been brought to bear on individual banks that were rediscounting undue amounts either for carrying Liberty loan bonds for customers, or for purchasing paper in the open market. As in previous years borrowings were made by banks largely on short maturities, thus keeping the bank's investments in a satisfactory liquid state. DISTRICT NO. 1 BOSTON. 303 TRADE ACCEPTANCES. Although the larger city banks are still disinclined to encourage borrowing for commercial purposes through the use of trade acceptances, preferring the single name note, there has been a strong tendency on the part of note brokers and merchants to increase the volume of this class of commercial obligation. While in some cases the firms using trade acceptances have not been those enjoying the highest credit, still merchants have found that they could get increased credit from their banks through the use of paper of this character, and that brokers were inclined to favor it. During the past year a number of corporations have been organized, in some cases under the general corporation laws of the State and in others under the State banking laws, corporations whose principal operations are confined to the financing of automobiles, both m connection with sales to dealers and to individual purchasers. The relation of these corporations to member banks, to the Federal Reserve System, and the character of the obligations which they handle as they pertain to the development of the general acceptance business should/ be given careful consideration. For a short time the Federal Reserve Bank purchased in the open market trade acceptances indorsed by member banks. Foreign-trade acceptances have also made their appearance in this market to a marked degree, and have been carried by the large city banks in their portfolios. These have been purchased at somewhat higher rates by the bank under open market operation, but only when indorsed by member banks. Inasmuch as it has been deemed desirable to increase rates whenever possible and to bring about a closer uniformity of discount rates on all classes of paper, the preferential rate for trade acceptances was withdrawn on December 12. BANKERS7 ACCEPTANCES. Increased demand for credits has produced a marked increase in the volume of bankers' acceptances created in this Federal Reserve district, and every encouragement has been given to the brokerage houses and discount companies to handle and distribute bankers' acceptances. This has led to considerable carrying of acceptances by this bank on repurchase agreements, only acceptances being taken, however, that this bank would purchase and these at rates slightly above the open market. Several of the large city banks have followed the same practice. There has been evidenced as a result of this encouragement a wider distribution of these acceptances among commercial and savings banks during the past year than ever before. With the Treasury out of the market for short borrowings, the banks in this district will be in a position to carry large portfolios of bills as secondary reserve. During the entire year the Federal Reserve Bank has maintained an open-market policy in connection with the purchase of these acceptances. Banks have preferred to sell their acceptances to the Federal Reserve Bank even at rates considerably higher than the current discount rates rather than offer their holdings for rediscount. As referred to elsewhere, during the months of August, September, 304 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. October, and early November the Federal Eeserve Bank was offered large amounts of bankers' acceptances from the portfolios of member banks due to the increasing commercial demand made by their customers. The general policy of having differential rates with reference to the character or maturity of acceptances has been maintained, but purchases of bills have been confined to those either accepted by or indorsed by member banks. The total amount of holdings of acceptances on the part of member banks was $109,000,000 on November 17. This bank has maintained the policy of requiring the indorsement of all acceptances rediscoanted with or for other Federal Reserve Banks. During the year seven member banks have beetfi given the special privilege by the Federal Reserve Board to accept up to 100 per cent of their combined capital and surplus, while several banks have entered the acceptance field for the first time. A policy has finally been adopted whereby bankers' acceptances payable in Federal Reserve Bank cities become reserve funds to the holding bank on the date of payment, settlement being consummated through the gold settlement fund in Washington. This arrangement has greatly aided the distribution of these bills among the various districts. UNITED STATES SECURITIES. The principal changes in the amount of United States securities held by this bank have been in connection with certificates of indebtedness issued under the Pittman Act, which provides for their use as security for Federal Reserve bank notes which have been issued to take the place of silver certificates. January 1, $666,000 of these were purchased to replace a like amount of United States 1-year 3 per cent notes which matured on that day and had been used as security for Federal Reserve bank notes. In addition to these $14,020,000 certificates of indebtedness were purchased to be used as security for additional Federal Reserve bank notes. Anticipating receipt of funds on a few occasions the Treasury Department sold to the Federal Reserve Bank special certificates of indebtedness maturing in one or two days and carrying 2 per cent interest. The funds so obtained were used to meet its current obligations. The largest amount of these certificates held at one time was $30,000,000 on September 15 and the total amounted to $36,000,000. CREDIT DEPARTMENT AND BANK EXAMINATIONS. The expansion of the general credit situation has called for a more careful scrutinizing of credits than ever before. Investigations have been made both of notes offered for discount by member banks and of notes and securities carried in the loans. In the past credit analysis has been conducted in connection with the examining department, but this work has now increased to such a point that after the first of the year it is planned to organize a separate credit department which will be under the immediate supervision of Frank S. Hughes, who, for many years, has been associated with R. G. Dun & Co. The scope of the department will be considerably extended, as it is proposed to follow more closely the different lines of commercial activity DISTRICT NO. 1—BOSTON. 305 in New England in order that the Federal Reserve Bank may be kept in closer touch with the credit situation and the needs of the industrial, commercial, and agricultural communities in this district. The work of the examining department has been largely increased during the past year in connection with both State member banks and national banks. It has been found desirable in the case of State banks to pursue the policy of making independent examinations not only at the time that they apply for admission but subsequently. This policy has been adopted not through any lack of cooperation on the part of the various State banking departments or through lack of confidence in their examinations, but rather in order to bring about a uniformity of detail in the information obtained and greater regularity of making, examinations. During the past year every State member bank has been examined either independently or in cooperation with State banking departments, in which latter case independent reports have been made by the Federal Reserve examiner. It has been found necessary to keep in closer touch with the condition of all national banks and to work in even closer cooperation with the chief national-bank examiner of this district than in previous years, and satisfactory results have been obtained thereby. RESERVE POSITION. Although the reserve position of the bank would appear to show less fluctuation than in 1918, this has been brought about only through the adjustment of reserves by rediscounts with other Federal Reserve Banks. The bank's reserve position has been affected quite as much by transfers of funds by the Treasury Department out of the district as by actual commercial demand. The transfers made from the proceeds of the sale of Government securities were mostly to the Federal Reserve Bank of New York. A heavy decline in the reserve position appeared early in November, due to heavy demand on the local banks for commercial purposes and incidental to the payment of local taxes. Municipal obligations created in this district in anticipation of these tax payments had been largely purchased outside of the district and on becoming due they withdrew quite an amount of the tax money from the district. The adjusted reserve percentage—• eliminating gold received from rediscounts with other Federal Reserve Banks—-has been unusually low except during the months of July, August, and September, the year ending with an adjusted reserve of 27 per cent, and on one occasion falling as low as 23 per cent. BANK OF ENGLAND STERLING ACCOUNT. On April 2, 1919, final payment was received by this bank on account of its share of the gold which had been deposited with the Bank of England on June 27, 1917. The original amount apportioned to this bank was $3,675,000. During the summer of 1919 the United States Grain Corporation received payment in gold for food sold in Germany. The gold was forwarded to the Bank of England to be held for the account of the Federal Reserve Bank of New York. As this was received by the Bank of England and counted, the various Federal Reserve Banks assumed a proportionate share of the total. 306 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. The first allotment of this gold was made on September 17, 1919, and the final one brought the total allotment for this bank to $12,638,000. However, before all adjustments had been made, the Federal Reserve Bank of New York commenced to sell part of this gold. The first sale was on October 2, 1919, and sales continued during the remainder of the year. As the year closes, this account stands at $9,600,000. RELATIONS WITH COMMERCIAL BANKS. Treasury financing and commercial expansion during the year have necessitated the closest cooperation between the officials of the Federal Reserve Bank and those of the commercial banks of the district. In connection with the Treasury financing, it was found necessary, in order to meet the quota of Treasury certificates placed on this district at each issue, to allot a percentage to each commercial bank in the district, that percentage being based upon each bank's total resources. Notwithstanding constantly increasing demands of their commercial customers and the tempting rates on commercial and call money, most of the banks in this district not only took their full quota of Treasury certificates but kept their commitments down and met the suggestions of this bank's officials regarding their credit lines. The governor and chairman of the board of directors of the Federal Reserve Bank have had meetings, when conditions seemed to make it necessary, with the executive committee of the Boston Clearing House, and discussed matters pertaining to the general credit situation in the district. Seven new national banks opened for business during the year, all but one being located outside of Boston. Four national banks went into liquidation, all but one of these, which consolidated with another member bank, being converted into State banks. Five trust companies were admitted during the year, all from Massachusetts, bringing the total number of trust company members to 36 and the total number of member banks to 432. While there are apparently a number of trust companies in the district that are not members of the Federal Reserve System, a large percentage do a character of business that probably does not warrant their joining the reserve system. Under the banking laws of most of the New England States, the investments of savings departments of trust companies not only must be segregated but are chiefly limited to investments of a character that are not eligible for rediscount purposes in the Federal Reserve Bank, these investments being largely in real estate mortgages and securities. State laws also either require no reserves against savings deposits or else require reserves considerably lower than called for by the Federal Reserve Act. Of the total resources of nonmember banks, over 135 millions, or 30 per cent, are composed of savings deposits. Although nonmember State banks in many cases no doubt indirectly used the resources of the Reserve Bank for accommodation, i. e., through their Boston correspondents, the effect of such borrowings on the general credit situation has been unimportant, these loans Digitized forhaving FRASERlargely been made at rates higher than those maintained by DISTKICT NO. 1—BOSTON. 307 the Federal Reserve Bank, borrowings for commercial purposes being mostly at 5§ and 6 per cent. The deposits of mutual savings banks and savings departments of commercial banks in this district have shown a heavy increase. While it is difficult to give the exact figures of this increase, there is no doubt that it will exceed 200 millions. Forty-two national banks have been granted special authority by the Federal Reserve Board to exercise fiduciary powers. DEPOSITS. The reserve accounts of member banks (collected funds) show an increase of some 16 millions over the previous year, having expanded from 101 millions on December 31, 1918, to 117 millions on the same date in 1919. This increase reflects the growth of deposits in member banks and also includes the reserves of trust companies admitted during the year. There has been greater penalizing of banks for deficient reserves than during the previous year, probably due to the policy inaugurated on July 1 of requiring member banks to make reports of average deposit liabilities for weekly periods if located in Boston and for semimonthly periods if located elsewhere, instead of monthly, as heretofore. On the other hand, the policy of allowing all banks outside of Boston to remit for checks sent them for collection instead of charging such collections to their accounts has enabled the banks to handle their reserve accounts more satisfactorily. The account of the Treasurer of the United States has shown great fluctuations during the year. At times, when funds have been drawn in from depository banks, the Treasury balances carried with this bank have been very large, but transfers to other districts and the payment of maturing Treasury certificates have not only at times drawn this account very low, but have necessitated the bank purchasing Treasury certificates for a day or two to cover overdrafts. CURRENCY. During January currency receipts were unusually heavy, probably due to the large expansion which occurred just previous to the Christmas holiday season. The question of properly sorting and counting this currency presented a difficult problem, as at that time the bank employed only a small number of money counters and its quarters were inadequate. As rapidly as possible this force was augmented and a new system of counting put into operation. A steadily increasing number of banks have taken advantage of the plan put in operation in October, 1918, whereby the Federal Reserve Bank absorbs the charges for shipping incoming and outgoing currency. During the year over $500,000,000 of currency was received and $400,000,000 paid out. The demands of December, 1919, were even heavier than those of the same month in 1918, and it is expected that much of this currency will speedily be returned from general circulation. While during the earty months of the year the bank accumulated a supply of about $500,000 in silver coin and $75,000 in nickels and dimes, after the December demand had run its course there was less than $25,000 of this coin in the bank's vaults, notwithstanding the fact that heavy purchases were made all during November and Digitized forDecember. FRASER 308 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE NOTES. Every year has shown a steadily increasing issue of Federal Reserve notes by this bank, for, unlike the situation that appears in other Federal Reserve districts, where agricultural seasonal demands expand and contract the note issues, the demand in this Federal Reserve district has been constant and increasing, except for fluctuations due to the Christmas retail trade. The interdistrict movement of Federal Reserve notes has been considerably heavier than in 1918, especially with New York, Philadelphia, and Chicago, and should be given careful study by the Federal Reserve Board. The handling, counting, and sorting oil these notes, together with other currency, has called for a large increase in the force and accommodations of the money department, from 71 to 104. It has also been found necessary to increase the supply of unissued Federal Reserve notes. FEDERAL RESERVE BANK NOTES. The further withdrawal of silver has resulted in the retirement of large amounts of silver certificates by the Treasury Department. This has called for some other circulating medium to replace that retired, especially $1 and $2 notes. To fill this demand, the Federal Reserve Bank has increased its issue of Federal Reserve bank notes to $21,000,000. All these are secured by special 2 per cent certificates of indebtedness issued under the Pittman Act. COLLECTION OF CHECKS. From the inauguration of the collection system by the Federal Reserve Bank, all banks in New England have remitted for their checks at par. in the case of member banks it had been customary to enter a deferred charge against their reserve account, while nonmember banks had the privilege of remitting for their checks after receipt. On December 1 all banks were placed on a remittance basis, a plan which greatly aided member banks in maintaining their reserves at the required amounts. Boston banks are now permitted to deposit in one package all checks on New England banks instead of being required to prepare a package of the checks drawn on each bank. As a result the number of items handled per day has increased to about 100,000 and the force handling these items has increased from 109 to 173. INTERNAL ORGANIZATION. There have been but few changes in the list of officers during the past year. However, the increase in departmental work has called for a large addition to our clerical force—an increase from 508 employees on December 31, 1918, to 629 on December 31, 1919, the increase for the most part being in the money and transit departments, and being about evenly divided between men and women employees. BANKING QUARTERS. The problem of housing the activities of the bank under one roof and of adequately safeguarding the cash and securities which it is upon to handle has been exceedingly difficult. The premises Digitized forcalled FRASER DISTBICT NO. 1—BOSTON. 309 at 95 Milk Street, purchased in June, 1918, containing some 13,000 square feet, were subsequently found to be inadequate for the bank's purposes, and as suitable adjoining property could not be obtained the directors decided to sell this property and to purchase elsewhere. It was accordingly disposed of and at a substantial net profit over all carrying charges, a tract of some 40,500 square feet being then purchased for $1,400,000, which has a frontage of 181 feet on Pearl Street, 267 feet on Franklin Street, and 128 feet on Oliver Street. This location is in close enough proximity to the banking center of Boston and its dimensions are such as to make its use entirely adequate for the bank's purposes. CERTIFICATES OF INDEBTEDNESS. United States Treasury financing, while decreasing in volume as the year 1919 drew to a close, was heavier for the first six months of the year than in any previous similar period. The Victory Liberty loan being the only long-term loan placed during the year, the Treasury Department was obliged to finance itself largely through the sale of certificates of indebtedness issued in anticipation of taxes, and other short-time certificates of indebtedness. These certificates were issued at frequent intervals, occasionally more than one issue being placed on sale at the same time. Although the committee in charge of the sale of certificates of indebtedness did splendid work, it was with difficulty, owing to the general conditions of the investment and money markets, that quotas were even approached. General commercial demands on the banks were such that subscriptions had to be obtained through personal solicitation. Most of the subscribing banks paid for these certificates by credit, as in previous years. These deposits were gradually withdrawn to meet Government requirements. These Government deposits, although no doubt having an important influence in the volume of certificate sales, have been, on the other hand, a rather unsettling factor in the general credit situation. As banks distributed these certificates to the public, they used the money thereby obtained as a basis for granting additional credits and when these Government deposits were later withdrawn had recourse to the Federal Reserve Bank or to their own correspondents for money with which to meet these payments. In connection with the different offerings of Treasury certificates of indebtedness, the Federal Reserve Bank has during the year acted as a medium to assist in the distribution of certificates between banks and has placed and filled orders for them. At the close of the year $369,000 of certificates were held for resale. VICTORY LOAN. The announcement made early in the year by the Secretary of the Treasury that there would be but one more popular offering of bonds enabled the Liberty loan committee to hold intact its volunteer organization that had handled so successfully the four previous bond issues, until after the flotation of the fifth or Victory loan, opened for subscription by the Secretary of the Treasury on April 22. The quota allotted to New England was $375,000,000 and the received were $427,223,750, or 113 per cent, repreDigitized forsubscriptions FRASER 310 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. sen ting subscriptions received from 817,822 individual subscribers, as reported by banks. The amount finally allotted to the district by the Treasury Department was $371,910,150. This Victory loan, owing to the improvement in the organization of the Liberty loan committee and to the fact that the Treasury Department had announced that it would be a closed issue and that it would be the last popular offering, was distributed as well, if not better, than any previous loan. Banks were not encouraged to solicit subscriptions on the "subscribe and borrow policy," as in the fourth loan, and furthermore subscribers were encouraged to subscribe on the Government installment plan. With the subscription to the Victory notes, the total amount of long-term Government securities subscribed for in the New England district amounted to over $2,000,000,000. Previous to May 20, when the initial payment of 10 per cent was due on subscriptions, about $35,000,000 of bonds were disposed of in advance of the issue for cash. In anticipation of the Victory loan, Treasury certificates of indebtedness amounting to $475,792,500 had been sold in the district which could be used in payment for Victory bonds, but only a negligible amount of these were so used, banks preferring to hold the certificates until they matured. The percentage of subscription to the Victory loan in the several New England States was about equal to that of previous loans. The Victory notes were issued in two series—4f per cent and 3J per cent, the latter being tax exempt. The bank delivered $317,644,500 of 4f per cent notes and $54,254,650 of the 3f per cent. WAR-SAVINGS DIVISION. On November 15, 1918, the Secretary of the Treasury definitely placed the distribution of all Government securities under the governor of each Federal Reserve Bank. This included the Liberty loan issues, Treasury certificates, and war-savings certificates. Until that date the war-savings organization had been directly conducted by the Treasury Department in Washington. As the various State committees had largely resigned, this necessitated the building up of almost an entirely new organization in this district. CUSTODY DEPARTMENT. This department has become of increasing importance during the year, in connection with the collateral against notes discounted with the bank and. collateral pledged against Government deposits. The added activities placed on this department have called for an increase in the clerical force. Member banks have also become accustomed to leave securities in this department for safe-keeping. The character of the collateral pledged during the year has changed to quite an extent, commercial paper increasing in volume and securities other than those of the United States Government showing a material decrease. The cutting of coupons on collateral held in this department has become an important factor in its activities. The handling of the coupons and bonds of the Government in the bond department has also been increasingly heavy, that department having redeemed no less than 7,000,000 coupons, amounting to $44,000,000, during the year. This same department during 1919 handled 961,000 odd of the fourth loan and 1,000,000 bonds of the Victory loan and Digitized forbonds FRASER DISTRICT NO. 1—BOSTON. 311 157,900 Treasury certificates. That these securities have been handled without loss demonstrates to some extent the efficiency of the bond department. The privilege of converting Liberty loan bonds carrying 4 per cent interest into bonds carrying 4J per cent interest was reopened on March 9, 1919, and many holders have taken advantage of this opportunity. FOREIGN EXCHANGE. Under the presidential proclamation of January 26, 1918, this bank was required to license all dealers in foreign exchange and to obtain reports of those who were doing an active business. Before the proclamation regulating foreign exchange was rescinded on June 26, 1919, this bank had issued licenses to over 1,600 dealers. In addition, permits to export coin and currency were issued to a number of concerns and banks. Blanket permits also were issued covering the shipment of Canadian currency to Canada and reports from holders of these permits indicated that a considerable amount of money was returned to that cquntr}r. In order to provide means for the payment of imports from India, arrangements were made whereby this bank was enabled to sell exchange on that country through the Federal Reserve Bank of New York. Lesser amounts of exchange on Argentina and Peru were also provided through the same channel. On June 26, 1919, all regulations concerning foreign exchange with only minor exceptions were repealed and therefore this department of the bank ceased operation on July-1, after about a year aad a half of existence. CONCLUSION. The Treasury financing, after the successful flotation of the Victory loan, has been of diminishing volume, so that as the year ends it is intimated that hereafter such financing will be so done as to divorce the Federal Reserve Banks from its influence. The foreign exchanges, while still unsatisfactory, will, no doubt, be helped by the relief which the Edge bill, recently passed by Congress, can afford. The responsibility of the Federal Reserve Banks will now be very great. The credit situation, which is far from satisfactory, must be brought back nearer to normal, but to do that without causing undue distress, will require the most careful judgment and foresight on the part of the officials of those banks, and the closest cooperation with the Federal Reserve Board. As this report shows, the demand for credit by member banks on the Federal Reserve Bank of Boston has been insistent &nd increasing. The year ends with the total earning assets—investments-—at not only the highest point of the year, but, including bills rediscounted with other Federal Reserve Banks, they reach a total of over 300 millions against a high point of about 200 millions the previous year, although there has been only a slight increase in the gold reserve. With cooperation between the Federal Reserve Bank, the local bankers, and business men, all working together to gradually restore more normal conditions of business, it is believed that the desired results may be obtained without undue hardship to legitimate business. It will, however, take patience, cpurage, and complete understanding between these elements if this is to be accomplished. 312 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. E X H I B I T A.—Movement of principal earning assets of the Federal Reserve Bank of Boston during the calendar year 1919. [In thousands of dollars.] Discounted Other paper dissecured by United counted States war paper. obligations. Date. Jan. 3 10 17 24 31 Feb. 7 14 20 28 Mar. 7 120. 121, 118 118! 118! 133! 146: 138! 139; 143: 144; 136 148! 148' 151 148' 157! , 14 Apr. 21 28 May i5s: June July Aug.. Sept. Oct. Nov. Dec. 21 28 12. 19. 26.. , 145: 152: 144; 146, 133, 145, 143, 144, 143, 138, 130, 134, 137, 128, 111, 107, 107, 112, 108, 115, 123, 122, 120, 121, 109, 110, 127, 130, 127, 126, 105, 128, 134, 138, 5 1+2 8,419 ! 129,194 9,035 j 130,989 126,351 7,957 8,744 ! 126, 778 7,774 j 125,856 7,844 i 141,218 153,721 7,318 7,831 ] 145,989 146,202 6,361 6,206 ! 150,007 5,245 ! 149.762 5,085 I 141^949 5,053 j 153,920 153,480 4,849 157,297 5,564 154,482 5,864 5,376 I 162,444 4,576 I 163,557 4,499 I 150,167 4,966 I 157,116 149,301 5,199 151,679 5,488 4,992 138,189 150,074 4,869 148,712 5,155 155,174 10,454 9,576 I 153.167 7,545 j 146', 222 137, 730 6,910 6,570 ! 140,571 6,986 I 144,706 8,276 i 136,412 8,433 I 120,181 8,517 ! 115,680 7; 948 i 115,692 7,441 ' 119,515 7,508 116,179 123,795 7,895 133,302 9,451 9,080 131,825 131,400 10,456 12,877 133,981 120,787 11,641 121,510 10,775 141,113 13,549 28, 7J 5 158,951 32, 763 159,841 39, 236 165,428 ' 39,870 145,738 38,889 166,944 183,883 49,559 56, 630 194,836 Bills bought in open market. Per cent. l-f-3 93.5 93.1 93.7 93.1 93.8 94.4 95.2 94.6 95.6 95.9 96.5 96.4 96.7 96.8 96.5 96.2 96.7 97.2 97.0 96.8 96.5 96.4 96.4 96.7 96.5 93.2 93.7 94.8 94.9 95.3 9-5.1 93.9 92.3 92.6 93.1 93.8 93.5 101.8 92.8 93.1 92.0 90.4 90.4 91.1 90.4 81.9 79.5 76.2 72.6 76.7 73.0 70.9 12,538 13,689 15,354 18,088 19,781 15,588 11, 213 12,033 9,241 10,393 9,816 10,572 15,425 j 7,152 8,032 6,402 9,694 13,180 13,932 15,204 15,859 14,673 I 17,433 18,842 !! 19,056 18,180 j 19,240 j 22,720 I 23,445 I 26,971 ! 26, 72.'i 26,862 25,184 35,756 45, 755 46,330 44,951 44,279 42,963 41,675 45,880 46,078 46,385 49,117 62,622 42,069 50,555 33,348 36,26(3 42,707 14, 412 16,500 I 6 Total United bills Total earning discount- States ed and securities assets. bought. 141,732 144,678 141,705 144,866 145,637 156,806 164,934 158,022 155,443 160,400 159,578 152,521 169,345 160,632 165,329 160,884 172,138 176,737 164, 099 172,320 165,160 166,352 155,622 168,916 167, 768 173,354 172,407 168' 942 161,175 167,542 171,431 163,274 145,365 151,436 161,447 165,845 161,130 168,074 176,265 173,500 177,280 ISO,059 167,172 170,627 203,735 201,020 210,396 198,776 182,004 209,651 198,295 211.342 9,521 9,521 10,264 9,264 9,954 9,954 10,954 11,954 12,954 12,954 14,954 14,954 14,954 15.954 15,956 16.955 17,255 17,455 17,455 17,455 17,472 17,471 18,484 17,485 17,485 17,485 17,484 17,484 21, 993 21,993 21,993 22, 093 21,989 21,989 21,989 21,988 22, 019 21,984 21,984 22,278 23,710 22.214 22', 585 22,102 21,979 22,470 22,988 23,101 22,620 22,291 22,13'S ! 22,200 151,253 154,199 151,969 154,130 155,591 166,760 175,888 169,976 168,397 173,354 174,532 167,475 184,299 176,586 181,285 177,839 189,393 194,192 181,554 189,775 182,632 183,823 174,106 186,401 185,253 190,839 189,891 186,426 183,168 189,535 193,424 185,367 167,354 173,425 183,436 187,833 183,149 190,058 198,249 195,778 200,990 202,273 189,757 192,729 225,714 223,490 233,384 221,877 204,624 231,942 220,432 233,542 313 DISTRICT NO. 1—BOSTON. E X H I B I T B.—Movement of gold and cash reserves, Federal reserve note and net deposit liabilities, and the reserve percentage of the Federal Reserve Bank of Boston during the calendar year 1919. [In thousands of dollars.] Date. Jan. 3 10, 17. 24. 31. Feb. 7. 14. 20. 28 Mar. 7. 14. 21. 28. Apr. 4. 11. 18. 25. May 2. 9. 16. 23. 29. June 6. 13. 20. 27. m \l 18. 25. Aug. I. 15. 22. 29. Sept. 5. 12 19. 26. Oct. 3. 10. 17. 24. 31. Nov. 7. 14 21. 28. Dec. 5. 12. 19. Gold reserves. 99,045 109,897 102,573 113,691 110,461 105,110 109,284 110,338 118,757 112,761 107,445 102,359 116,574 107,533 121,455 116,303 112,610 103,608 111,566 124,615 113,546 122,771 112,397 115,796 117,509 108,533 105,428 130,114 121,902 130,336 128,116 136,890 159,326 159,581 155,777 149,489 154,490 123,973 142,086 146,072 159,890 160,841 171,687 167,466 145,153 144,731 132,430 149.821 163;609 140,845 152,070 152,865 Total cash reserves. 101,733 114,192 106,145 117,546 114,625 110,166 114,533 115,988 124,637 119,089 114,011 108,693 122,884 113,709 127,537 122,674 118,760 111,560 118,817 132,052 121,262 130,127 119,481 122.855 124,917 115,574 111,953 136,396 128,433 137,841 136,378 145,614 168,146 167,744 163,444 156,502 161,064 130,699 148,564 152.014 165,301 166,342 177,191 173,043 150,860 149,882 137,538 154,371 168,144 144,760 155,795 156,103 Federal reserve notes in actual circulation. 160,506 159,053 148,985 148,332 149,565 152,479 155,884 158,190 159,552 160,876 163,142 165,338 166,874 169,609 171,265 174,092 177,737 176,931 176,024 171,595 169,647 172,171 173,771 172,632 172,757 176,159 182,631 181,787 178,961 180,481 183,544 189.597 191,077 195,600 198,967 203,986 205,316 205,735" 207,829 211,341 213,067 215,092 213,903 212,096 215.598 218,358 216,914 220,828 223,073 226,737 238,211 246,455 Net deposits. 76,556 93,023 92,271 105,434 102,241 105,061 114,730 107,459 112,578 110,217 102,736 87,414 116,537 96,107 112,328 100,522 103,440 102,033 97,620 123,225 107,321 115,012 92,962 109,650 109,972 102,438 91,532 113,275 104,804 117,342 115,188 108,807 111,595 112,448 115,481 107,846 106,661 82,704 106,667 104,085 120,992 121,101 120,271 120,792 126,682 120,829 119,357 120,806 115,996 115,567 103,715 108,572 (3+4.) 237,062 252,076 241,256 253,766 251,806 257,540 270,614 265,649 272,130 271,093 265,878 252,752 283,411 265,716 283,593 274,614 281,177 278,964 273,644 294,820 276,968 287.183 266,733 282,282 282,729 278,597 274,163 295,062 283,765 297,823 298,732 298,404 302,672 308,048 314,448 311,832 311,977 288,439 314,496 315,426 334,059 336,193 334,174 332,888 342,280 339,187 336,271 341,634 339,069 342,304 341,926 355,027 Katio of cash reserves to net deposit and Federal reserve note liabilities combined. | i ! | i | I i | | ! I I ! i i | i j ! j j | I i 1 ! I ! I I i j 42.9 45.3 44.0 46.3 45.5 42.8 42.3 43.7 45.8 43.9 42.9 43.0 43.4 42.8 45.0 44.7 42.2 40.0 43.4 44.8 43.8 45.3 44.8 43.5 44.2 41.5 40.8 46.2 45.3 46.3 45.7 48.8 55.6 54.5 52.0 50.2 51.6 45.3 47.2 48.2 49.5 49.5 53.0 52.0 44.1 44.2 40.9 45.2 49.6 42.3 45.6 44.0 314 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. EEDERALRESERVE BANK OF BOSTON MO/EM EN T OF EARNING ASSETS DURING CXLEfiPAR TEAR-1919. so as n I SO 1 LIMITED STATES SECURITIES. PS SO 2S 0 •PS -Ammm ^ ^ ACCEPTANCES 30U6HT mm SO as Q IOC SO 60 40 20 O too so 60 40 20 0 PERCENTAGE OriVARPAPER TO TOTAL DISCOUNTS. IPS TOTAL BILLS DISCOUNTED, <D; AND WAR PAPER, «W\ 250 2S0 22S TOTAL EARNIN6 ASSETS. JAN\FEB\MCH\APRL\MAr\J!JflE\/UUr\AU6. \SEPT\ OCT. \NOV\PEC 315 DISTRICT NO. 1—-BOSTON. FEPERALRESERVEBANKOrBOSTON NET PEPOSIT LIABILITY. f.R.NOTE CIRCULATION, CASHRESERVES.AHPRESERYERATI0.I9I9. 70 60 SO 30 20 10 O RESERVE RATIO, CPERCEIHTAGEOFC+L) 2S0 200 /SO 100 100 SO SO DEPOSITANDER. HOTEUABIUTIES/L; AW TOTAL RE5ERYES, "€'. JAN. FEB. MCH.APRL MAY JUNt JULY AUG. SEPT. OCT. /TOK DEC. 178983—20 21 70 60 SO 40 30 20 10 0 V 40 8 316 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT C.—Comparative balance sheet. (000 omitted.] Dec. 31, 1919. Dec. 31, 1918. Dec. 31, 1917. RESOURCES. Earning assets: Bills discounted, secured by United States war obligations.. Other bills discounted (commercial) Acceptances purchased in open market United States bonds United States short term obligations 8124,529 $120,515 63,510 13,060 18,649 15,084 539 538 7,416 21,805 Total Reserve cash: Gold (coin and certificates) Gold settlement fund. Bank of JKngland sterling gold s Other lawful money Total Reserve 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 i Exchanges for clearing house and cash items.. Federal Reserve notes and other cash on hand. Due from Government depositaries Redemption fund Federal Reserve bank notes. Real estate for bank quarters Total. I I j $43,898 21,984 9,037 610 2,194 229,032 156,613 77,723 7,959 34,351 9,586 4,037 3,317 37, 292 408 2,288 18,691 16,977 3,675 3,574 55, 933 43,305 42,917 73,511 26,312 40,896 2,000 204 73,236 4,357 7,901 48,373 1,072 1,103 59,733 7,812 33 567 573 52,910 10,548 13,809 30,014 320 800 21 118 144 15,007 3,216 4,661 66,489 521,286 377,042 253,196 7,107 8,359 6,691 1,535 5,858 75 117, 294 21,725 45,469 1,123 48,373 566 5,277 101,806 17,467 29,269 10,499 30,014 411 82,842 3,870 13,780 2,419 66,489 20 244,093 20,912 807 93 88 168,986 6,889 467 93 1,460 750 77,296 521,286 377,042 253,196 60,121 48,962 44,477 222 LIABILITIES. Capital fund: Capital paid in Surplus Deposits: Due to member banks, reserve account Due to Federal Reserve banks, collected funds * Due to banks, uncollected funds ' Due to Treasurer of the United States, general account. Due to Treasurer of the United States, special account.. Cashier's checks, outstanding, etc Foreign Government credits Other liabilities: Federal Reserve notes outstanding Federal Reserve bank notes outstanding Unearned discount and interest Reserve for depreciation and interest Reserve for franchise tax and other taxes Mortgage on real estate Total. Liability for rediscounts with other Federal Reserve Banks. 1 Offsetting items to be cleared through gold settlement fund. 468 75 DISTRICT NO. 2.—NEW YORK. PIERRE JAY, Chairman and Federal Reserve Agent. Recourse to the credit facilities of the Federal Reserve Bank of New York during 1919 was more constant and general and in larger volume than during 1918. The maximum of its earning assets during 1918 was $968,000,000. In 1919 it was $1,079,000,000. As the necessity for the banks to borrow from the Federal Reserve Bank arose primarily from their absorption of one form or another of Government obligations, it was natural that these obligations should have continued to be used during the year as the chief basis for accommodation at the Federal Reserve Bank, though loans based on commercial paper showed a marked increase from 1918. But the impelling reason why loans continued to be based mainly on Government obligations was the preferential rate established for such transactions and the greater ease and simplicity of borrowing with such security. In both 1918 and 1919, although it was the volume of Government obligations outstanding which created the necessity for borrowing at the Federal Reserve Bank, the fluctuations in the amount of this borrowing arose directly from the movement of Government funds into or out of the district, as was noted in the last annual report. During the year the fluctuations in earning assets and the movements of Government funds effected considerable variations in the reserve percentage of the Federal Reserve Bank of New York, as appears in the charts accompanying Exhibits A and B. In its weekly published statements the highest per cent of reserves against deposit and note liabilities was 54.5, on June 20, and the lowest per cent, 40, on December 26. Changes from week to week are shown in Exhibit B and accompanying diagram. Frequently during the year, in order to equalize reserve percentages, this bank sold bills from its portfolio to other Federal Reserve Banks. The volume of these sales aggregated $312,739,000. On the other hand, as a partial offset to this larger aggregate transfer of investments, the Federal Reserve Bank of New York rediscounted for or purchased bills from other Federal Reserve Banks to the aggregate amount of $55,826,561.89. The following table shows the reserve figures of this bank and of the Federal Reserve System when the United States entered the war and at the close of 1918 and 1919: Federal Reserve Bank of New York. All Federal Reserve Banks. Date. Per cent. Apr.6,1917 Dec. 27, 1918 Pec. 26, 1919 92.0 42.5 40.0 Amount. $426,814,000 637,295,000 616,040,000 Per cent. Amount. 84.7 $962,662,000 50.6 2,146,219,000 44.8 2,135,536,000 317 318 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. During the year the purchase from the Treasury of special certificates of indebtedness for short periods in order to supply the Treasury with funds to meet maturing obligations pending the transfer of funds from other districts, or their withdrawal from depository banks, aggregated $2,605,500,000; the largest amount of such certificates held at any one time was $260,000,000. The bank purchased during the year $24,321,000 United States 2 per cent certificates of indebtedness, which it hypothecated under the authority of the Pittrmn Act as security for Federal Reserve bank notes. The custom of purchasing certificates of indebtedness from nonmember banks, with an agreement on their part to repurchase within 15 days, was continued in 1919 as a means of encouraging their subscriptions to the issues. The largest amount of certificates held under repurchase agreements at any one time was $35,876,500, on May 6. This bank has continued during the year its policy covering the temporary purchase of bills, thereby assisting houses that deal in such paper from time to time in carrying their portfolios. The largest amount of bills so held at any one time was $14,288,851.73, on November 17. Below is a comparative summary of the discounts and advances made in 1919, 1918, and 1917: 1918 1919 Number of applications received 23,237 Amount of apnlications accepted and discounted or advanced upon $42,449,491,133.87 Number of pieces of paper discounted or 127,721 advanced upon Largest piece of paper discounted or ad$120,000,000.00 vanced upon Smallest piece of paper discounted or ad$2.81 vanced upon Average size of notes discounted or advanced upon 8332,361.09 Number of banks rediscounting 546 1917 14,831 2,513 $24,535,538,457.77 $6,513,225,285.60 129,038 22,484 $135,000,000.00 $147,000,000.00 $5.02 $25.00 $190,141.96 522 $289,682.67 322 ACCEPTANCES AND THE DISCOUNT MARKET. Purchases by months of bankers' acceptances and indorsed trade bills by this bank for its own account and for the account of other Federal Reserve Banks have been as follows: For our own account. Number of items. January February.. March April May June July August September. October November. December.. 2,850 2,115 2,013 2,645 2,300 4,768 4,832 2,301 2,332 5,448 5,145 6,823 Total 43,572 Amount. $75,628,789.75 56,351,763.56 53,350,194.52 71,653,945.23 60,721,633.14 142,516,454.53 I 129,118,992.41 I 64,910,475.76 64,481,753.02 145.060,465.83 152,643,970.06 210.788,099.84 •1,227,226,537.65 For the account of other Federal Reserve Banks. Number of items. Amount. 1,789 1,209 1,329 1,217 1,252 2,875 2,749 1,903 2,931 3,838 3,109 4,383 $46,516,341.45 31,772,303.09 34,959,972.36 33,966,815.31 34,190,164.37 81,900,544.26 73,976,160.83 46,094,342.25 76,141,468.06 98,869,452.20 79,417,045. .05 101,694,398.60 28,584 739,499,007.83 i Includes $15,826,561.89 of bills bought from other Federal Reserve Banks. DISTRICT NO. 2—NEW YORK. 319 PURCHASES FOR MEMBER BANKS. During the year 1919 this bank, as a service to member banks, has also bought bills in the open market for their account. This new service has been availed of by 38 member banks up to the end of December 31, 1919. Bills bought for their account aggregated $8,199,947 and comprised 873 pieces. Such purchases are made for member banks on their order, and if desired, this bank retains custody of the paper bought, and either collects it for the member bank's credit at maturity or makes such other disposition of it before maturity as may be desired. This service is without charge to members and through it several of them have become experienced buyers of bills on their own account, and find it no longer necessary regularly to avail themselves of the service. Others, having surplus funds for investment only occasionally, have not yet developed as individual buyers. From the very general interest manifested in this new service, the outlook for increasing activity in it is promising. BANKERS' ACCEPTANCES. The demand for bankers' acceptance credit continues to increase substantially and more bills are being created than ever before. Freer shipping facilities have promoted larger import movements, particularly from South America and the Orient, and increased commodity prices have resulted in very large dollar drawings from those markets. The increased price of cotton this year also has required much greater banking accommodation, which has largely taken bankers7 acceptance form, with the result that many new names have appeared in the New York market as acceptors, principally of banks located in the South and Southwest. The further development during the year of the business of accepting corporations and foreign trade banks has been rapid. At the end of the year such institutions located in New York had aggregate capital and surplus in excess of $38,802,000, and their liability for acceptances outstanding was approximately $90,000,000. While discount houses and dealers in bills have endeavored strenuously to accomplish distribution of this increased volume of bills and in the main have been fairly successful, the almost constant advance in money rates made their task increasingly difficult. Not only have they had to carry larger portfolios, often requiring for that purpose funds obtainable only at rates equal to or higher than those earned by their portfolios, but the higher rates for call money on investment securities attracted to that market out-of-town funds that would otherwise have been at the service of commercial requirements; and during the latter months of the year, as the market rates for bills yielded along with other rates to higher levels, there developed an instability that prevented satisfactory distribution. Under these circumstances the Federal Reserve banks absorbed an increasing amount of bills in the open market, buying from member banks and dealers alike at uniform rates for prime indorsed paper. EARNINGS AND EXPENSES. Earnings during 1919 aggregated $35,278,000, as compared with $25,315,000 during the preceding year. These increased earnings were due, of course, to the larger volume of discounts and advances Digitized forwhich FRASERwar and business financing necessitated during the year. 320 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Total expenses during 1919 amounted to $5,565,000, exclusive of disbursements made for the account of the Government aggregating $4,963,642.44. This latter amount includes the cost of carrying on the departments of the bank performing fiscal agency functions for the United States, and the Government loan and war savings organizations. These payments have been reimbursed or are now in process of reimbursement by the Treasury Department. The amendment to the Federal Reserve Act, approved March 3, 1919, directed that each Federal Reserve Bank should pay its net earnings into a surplus fund until it amounted to 100 per cent of its subscribed capital and that thereafter it should pay into surplus each year a further 10 per cent of its net earnings, before transferring to the Treasury of the United States any of its surplus earnings as a franchise tax. This was made retroactive so as to cover the surplus earnings of the year 1918, which had not been called for by the Treasury Department pending the consideration of this legislation by Congress. Accordingly, at the close of the vear the surplus of the Federal Reserve Bank of New York is $44/781,500, or 100 per cent of its subscribed capital, to which is added 10 per cent of the remaining net earnings of the present year, or $300,432.63, making in the aggregate a surplus of $45,081,932.63 to which the United States has reversionary ownership. The amount transferred to the Treasury of the United States as a franchise tax was $2,703,893.63. From the total net earnings of the bank amounting to $29,713,000 deductions have been made to cover certain known items of depreciation and to provide reserves for special purposes. Thus, the appraised valuation of the old buildings and foundations on the property acquired during the year as a part of the site for the new bank building, has been charged off in the amount of $900,031.72. The loss in value of the foreign exchange held by the bank as based on market rates at the close of the year, amounting to $325,741.35, has also been provided for, and an additional sum of $200,000 has been set aside for the establishment of a self-insurance fund. Other charges are $169,514.40, to cover the tax on Federal Reserve bank note circulation for 1919, and $168,681.70 to cover the assessment to be made by the Federal Reserve Board for its expenses. Semiannual dividends of 3 per cent were paid to stockholders on June 30 and December 31. NOTE ISSUES. Exhibit B shows the movement of the Federal Reserve notes of this bank in actual circulation during the year. The decrease during the first month of the year reflects the normal release of currency following the crop moving and holiday periods. The maintenance of the circulation at a high point throughout the balance of the year, which reached $770,000,000 on July 7, is merely indicative of great trade activity at steadily increasing prices. The substitution of Federal Reserve notes for gold certificates seems to have proceeded as far as practicable. The banks of the district are carrying very small stocks of gold certificates, and though they continue to retire from general circulation those which are presented over their counters, the volume of gold certificates in general circulation in the district is now very small indeed. DISTRICT NO. 2—NEW YORK. 321 With the continuance during the early part of the year of the export of silver to oriental countries, Federal Reserve bank notes have been issued in increasing volume to replace silver certificates retired from circulation. The amount of Federal Reserve bank notes of this bank outstanding on December 31, was $58,000,000, which compares with $33,000,000 a year ago. COLLECTIONS AND CLEARINGS. Check collection.—The increasing use which is being made of the check collection facilities of the bank is indicated in the following figures, showing the number of items handled year by year, and the amount in dollars: Period. 1915 (June 1-Dec. 31). 1916 1917 1918 1919 Number of items. Amount. 1,262,211 j $1,334,015,772 6,841,364 5,160,192,000 19,408,179 20,104,527,000 35,348,601 42,581,833,000 56,540,748,116 74,463,917 During 1919, in addition to handling an increased number of items, progress was made in many directions. Chief among these was the notable increase of 6,580 banks in other Federal Reserve districts added to the par list, making the total number of such points 25,571, out of a total estimated number of banks and bankers of 29,586. Note collection.—The facilities of the bank in the collection of notes, drafts, and coupons were further developed and increasingly used. During 1919 the bank collected 83,534 notes and drafts payable in New York City, as compared with 39,302 the year before, and about 8,000 in 1917. The collection of such items payable elsewhere than in New York increased nearly 200 per cent during the year, aggregating 147,742 in number and $234,834,000 in amount. Through the Buffalo branch collections of a similar nature were made for the Buffalo territory. No charge is made by the Federal Reserve Bank for this service, but where a charge is made by the collecting bank it is passed back to the depositing bank. The bulk of these noncash items, however, is collected at par. During the year, of those payable within this district, about 97£ per cent were collected at par, and where charges were made the average rate was one-twelfth of 1 per cent. Of the items payable outside of this district, about 77 per cent were collected at par, and charges, when made, averaged about one-tenth of 1 per cent. Coupon collections.—The collection of matured bonds and coupons by this bank during 1919 was $25,000,000, as compared with $17,796,000 during 1918. The extent to which the member banks are availing themselves of this service is seen in the increase in the number for whom collections were made from 238 during 1918 to 531 during 1919. Gold settlement fund.—The settlements made through this fund during 1919, as compared with those of previous years, were as follows: 1919 1918 1917 1916 Digitized for1915 FRASER $41, 932, 723,000 32,935,576,000 17,118, 917, 000 2, 335, 225, 0 556, 432, 0 322 ANNUAL REPORT OF THE FEDERAL. RESERVE BOARD. RELATIONS WITH BANKS. The banks of the second Federal Reserve district as they were on December 31, 1919, classified according to their charters, whether national or State, and also according to membership in the Federal Reserve System, are as follows: Trust companies. State banks. National banks. Location. Total. Members. Nonmem- Members. Nonmem- Members. Nonmembers. bers. bers. Manhattan Rest of New York State 31 457 15 24 19 166 15 35 8 41 61 516 27 207 Total New York State New Jersev Connecticut.... 4sS 135 13 39 5 0 185 11 1 50 26 2 49 61 15 577 166 15 234 72 16 Total for district 636 44 197 78 125 758 | 322 NEW MEMBERS OF THE SYSTEM. The number of State banks and trust companies, which are members of the system, increased during the year from 101 to 122. Twentytwo new State bank or trust company members were admitted, and one trust company formerly a member was merged with a national bank. The 122 members represent 31 per cent in number, and about 79 per cent in resources of the State banks and trust companies in the district which have sufficient capital to make them eligible for membership. FIDUCIARY POWERS FOE, NATIONAL BANKS. During the year the number of national banks in the district exercising fiduciary powers—authorized by the Federal Reserve Board, under the amendment to the Federal Reserve Act approved September 26, 1918—increased from 34 to 117. A number of these banks, especially those in the larger cities, are actively developing fiduciary business, but in the smaller places many of the banks have gone no further than to obtain the Federal Reserve Board's permission to transact it. THE RESERVES OF MEMBER BANKS. From the inauguration of the Federal Reserve System the reserves of member banks in this district were calculated by this bank on the basis of averages for monthly periods; but in other districts a number of other plans, some on a semimonthly, some on a weekly, and some on a daily basis were in operation. In the early fall the Federal Reserve Board thought it desirable to establish a uniform practice, and in conformity with general instructions issued by the Board, this bank instituted on October 1 the Board's uniform system, superseding the monthly reporting system in effect previously. Under the revised method weekly reports are received from member banks in the central reserve cities and reserve cities—that is, the Boroughs of Manhattan, Brooklyn, and The Bronx, and the cities of Albany and Buffalo—and semimonthly reports from members elsewhere. From these reports are computed each bank's net demand and time deposits for the weekly or semimonthly period, as the case may be, and the amount of reserve which each bank is required to at the Federal Reserve Bank. The penalty rate on deficient Digitized forkeep FRASER DISTRICT NO. 2—NEW YORK. 323 reserves has remained at 6f per cent throughout the }rear. Penalty payments amounting to $36,405.58 were slightly above those of last year, when the amount was $27,191.89. INTERNATIONAL FINANCIAL ARRANGEMENTS. Prior to January 1, 1919, this bank made certain financial arrangements with foreign banks or governments which were by way of preparation for a return to more nearly normal conditions in international commerce than had existed during the war. These arrangements were outlined in this report for 1918. The operations carried on in accordance with them during the year are summarized below: Bank of England.—Transactions with the Bank of England under the terms of our formal agreement have been very limited during the past year. We have opened a current account with them which has, however, remained inactive. The Bank of England is handling for our account the German gold purchased from the United States Grain Corporation, described elsewhere in this report, which involves a very considerable amount of work on their part. Bank of France.—Operations between this bank and the Bank of France have been very limited, being confined largely to our opening a current account with them and the occasional receipt of funds by us for their credit. Bank of Japan.—No active business has been transacted during the past year with the Bank of Japan, although it is expected that our relations with them may become more active in the near future. Philippine National Bank.—Our relationship with the Philippine National Bank has remained unchanged, there being no need for active operations, as they have a branch in New York. Be Nederlandsche Bank.—Our relations with this institution during the past year have become more active and we now perform for them many of the duties of a New York correspondent. They have opened a current account with us and also invest in bills in this market which are held by us in portfolio for them. The account which we opened with de Nederlandsche Bank for the purpose of receiving therein, for the use of the Treasury Department, the proceeds in guilders of the sale of wheat and other commodities, has been closed out during the past year. Norges Bank and Sveriges Rikshank.—Both of these accounts, which were opened at the request of the Treasury Department to effect disbursements for the War Department, have been closed out, the former on September 24, 1919, the latter on April 10, 1919. De Javasche Bank.—In April, 1919, a limited arrangement was effected between ourselves and de Javasche Bank whereby we agreed to hold United States gold coin in custody for them, open a current account in their favor, and buy bills for them in this market. This arrangement is now in actual operation. Bank of Spain.—This account was opened in August, 1919, at the request of the Treasury, to receive therein the pesetas which we purchased as fiscal agents of the United States to retire peseta certificates of indebtedness issued by the Treasury in connection with the 250,000,000 Spanish peseta credit. Operations through this account have been confined to such transactions. India.—Operations under the arrangement between the United Digitized forStates FRASERand the British Government by which American importers 324 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. obtained rupees through the Federal Reserve Bank of New York to >ay for imports from India were concluded on May 12, 1919, when the ast sale was made. The total credits received by this bank under the arrangement from November 28, 1917, when it went into operation, to May 12, 1919, were 202,500,000 rupees, all of which were disposed of to our importers. Argentina, Bolivia, and Peru.—Transactions under the arrangements entered into between the United States and the Argentine, Bolivian, and Peruvian Governments, for the stabilization of exchange between the United States and those countries, also came to an end during the past year. The Argentine Government has withdrawn a portion of the deposit held by us for its credit under the terms of this agreement, but still retains a substantial amount on deposit with us. Under the Bolivian agreement, which provided for a maximum deposit of $5,000,000, we received $4,500,000, all of which was withdrawn during the first six months of the past year. No operations were carried on through this bank under the Peruvian agreement. t GOLD IMPORTS AND EXPORTS. From January 1, 1919, to June 9, 1919, the Federal Eeserve Bank of New York forwarded to the Federal Reserve Board 810 applications for permission to export gold, silver, or currency, aggregating $151,811,816.82, of which it recommended that 703 applications, aggregating $138,258,264.62, should be granted. While the embargo was in force the amount of gold exported from the United States under license from the Federal Reserve Board aggregated $14,035,672, while imports during that period were $24,310,573, making a net gain in our gold supply from imports of $10,274,901. ACQUISITION OF GERMAN GOLD. The Federal Reserve Banks received in London approximately $173,000,000 in gold, representing payment by the German Government for foodstuffs bought in the United States. That amount was introduced into the gold reserves of the Federal Reserve Banks and is, therefore, tantamount to an importation. Approximately $42,000,000 of this gold has been sold to banks for exportation to the Far East, and would have been withdrawn from this country if it had not been available in London. The German gold mentioned above, which this bank purchased in May, 1919, from the United States Grain Corporation at bullion value, consisted of approximately 730,000,000 German marks against which we originally made an advance to the Grain Corporation of 92 per cent, or about $159,000,000, based upon a preliminary examination of the gold. This advance was later increased to 98 per cent, or approximately $170,000,000, as more accurate returns on the value of the gold were received. Two hundred and ninety million marks of this gold was deposited with the National Bank of Belgium, Brussels, and the balance, 440,000,000 marks, with de Nederlandsche Bank, Amsterdam. At our request the Bank of England undertook the transfer of this gold from the Continent to London, and as it arrived at the Bank of England it was introduced into our reserves and prorated among all the Federal Reserve Banks. All of the gold has arrived at the Bank of England, and most of it has been reduced to Digitized forbars. FRASER DISTRICT NO. 2—NEW YORK. 325 INTERNAL MANAGEMENT. Throughout the year the board of directors met weekly and the executive committee daily except on Saturdays and holidays. Other committees of the board have held meetings as occasion required. One of the subjects to which the directors and officers gave special attention during the first eight months of the year was the development of a form of internal organization which would facilitate the most effective conduct of the bank. After thorough study and analysis, a plan was adopted which went into effect on September 2. It has as its fundamental aim the separation of the functions of operation and organization, and involves placing the responsibility for conducting each department upon its own chief administrative officer and requiring it to transact completely the business falling within its province. Every activity is definitely allocated to a specific department, and responsibility is thus more definitely fixed. The office of cashier, through whom all operating matters, in the last analysis, formerly had to pass, is abolished. The officers are grouped as follows: (A) Junior officers, (B) senior officers, and (C) general officers. The junior officers are the managers of the various departments. Their title corresponds with the title of assistant cashier, formerly used. Each one of these managers is responsible for the duties of operation or organization as the case may be, which attach to his department, and has working under him subordinates authorized to sign within specified limitations and a sufficient staff to complete all business of his department. Each of the senior officers, called controllers, is assigned to one or more of the functions of the bank and is responsible for the development of policies relating to his particular function and for the supervision of the departments charged with carrying out the various aspects of such function. The controllers, therefore, do not operate the departments of the bank, but supervise and control their policies. The number of managers at present is 26, and the number of controllers is 12. At present some of the controllers are a< ting as managers and some of the deputy governors are a-v ting as controllers. The general officers of the bank are as follows: Governor, deputy governors, and chairman of the board of dire' tors. These officers form the managing committee of the bank with which certain controllers are from time to time invited to sit. The managing committee meets daily ex* ept Saturdays. Its members are not assigned to specific iuw tions or departments of the bank, but are concerned with general policies of administration. Another aim of this plan of organization is to center greater responsibility upon the junior and senior offi< ers and to open to them more opportunities for promotion than existed under the old form of organization, where there was only one (ashiership through whith all assistant cashiers would normally expect to receive promotion. The plan of fixing operating responsibility has been extended even below the rank of manager. In many of the departments there are divisions, each in charge of a (hief, and many of the larger divisions are divided into sections, each in charge of a supervisor. The plan of organization has now been in operation about four months, and seems to be working satisfactorily as a means of accelerating administration and of fixing and developing responsibility. 326 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Living cost continued to increase during the year, and the directors, with the approval of the Federal Eeserve Board, supplemented the normal compensation of employees by additional payments. From January until October this additional compensation was 25 per cent on salaries up to and including $1,500 a year; 20 per cent on salaries of more than $1,500 up to and including $3,000; and 15 per cent on salaries of more than $3,000 up to and including $5,000 a year. For the last quarter the additional compensation was on the basis of 50 per cent on salaries up to and including $1,500: 40 per cent on salaries above $1,500 up to and including $9,000, and 25 per cent on salaries of more than $3,000 up to and including $6,000 a year; these higher percentages being in the nature of an adjustment for the year. THE BUFFALO BRANCH. The first branch of the Federal Reserve Bank of New York to be established was opened for business at Buffalo on May 15, 1919. The purpose was to make the facilities of the Federal Reserve Bank more readily available to banks in the western part of New York State. The territory assigned to the branch included the counties of Monroe, Livingston, Allegany, Orleans, Genesee, Wyoming, Cattaraugus, Niagara, Erie, and Chautauqua. It is optional with member banks in those counties to deal with the Buffalo branch or with the main office in New York. The branch was placed in Buffalo, a city of more than 500,000 people, whose industries are unusually diversified, because of its commercial and banking importance. The branch was established at the request of the Buffalo banks and all but one of the eligible State institutions not already members of the Federal Reserve System applied for and were admitted to membership. At present there are 75 member banks with capital and surplus of -131,186,000 in the branch territory, aside from 84 nonmember institutions. Functions of the branch.—The by-laws adopted for the branch permit it to exercise many of the functions which had been performed at the .main office in New York; nevertheless an intimate connection is to be maintained in all of its operations between the branch and the bank in New York. It is permitted to receive from member banks and other Federal Reserve Banks checks and drafts for collection on the same terms and conditions as they are received by the Federal Reserve Bank in New York. It sends items direct to all member and nonmember banks on the par list in this district for payment by remittance to the Federal Reserve Bank of New l o r k in New York funds or, if preferred, for payment by remittance to the Buffalo branch in Buffalo funds. In either case a single remittance may be made for letters received from both New York and Buffalo. It receives deposits from member banks and makes payments of money to or through them for the account of other member banks. These payments include the supply of currency in all denominations. It makes telegraphic transfers without charge for the account of member banks and Federal Reserve Banks. It collects maturing notes, drafts, bills of exchange and coupons for member banks in the Second Federal Reserve District, for the Federal Reserve Bank of New York or for other Federal Reserve Banks. It receives from member banks within its territory applications for discount of eligible paper, which are sent to New York, with recommendations by the Buffalo Digitized forbranch, FRASER for final action and credit, or for such other disposition as DISTRICT NO. 2—NEW YORK. 327 may be desired for the applying member bank. It pays Government checks, Liberty bond coupons, maturing United States certificates of indebtedness and other Government obligations, and also receives and holds securities for safe-keeping for the account of member banks in its territory. FISCAL AGENCY OPERATIONS. The sale and handling of Government issues.—The sale of the Victory loan in the spring of 1919 was the final stage in the great series of Treasury operations for funding the country's war indebtedness. Like its predecessors the Victory loan presented a problem which was not limited to selling bonds, but extended to the creation of a new public attitude toward investments. In the 12 months of 1919 there were sold through the Federal Reserve Bank of New York a total of $4,506,155,500 of certificates of indebtedness, making a total of $11,019,491,000 since the war began and approximately 42.6 per cent of all the certificates sold in-the country since the issues were initiated. The general participation by the banks of this district in the purchase of certificates is shown by the fact that all but 84 out of a total of 1,262 commercial and savings banks in the district appear in the list of subscribers. The banks outside New York City received allotments to Victory loan certificates of 101 per cent of their total quota, as against 108 per cent in the case of the fourth loan certificates, and New York City banks received allotments of 126 per cent of their quota of Victory loan certificates as against 135 per cent of fourth loan certificates. The redemption of certificates in this district has been materially in excess of sales, indicating that many certificates sold in other districts have been sent to this market prior to their maturity dates. The total amount redeemed through this bank up to December 31 was $4,351,057,500, of which $2,872,177,500 were redeemed in cash; $646,031,500 were exchanged for other issues and $832,848,500 were presented in payment for bonds and in payment of taxes. The Victory loan.-—As in previous loans, the amount subscribed in the second Federal Reserve district to the Victory loan exceeded the quota assigned. Total subscriptions exceeded the quota by 31 per cent, thus placing the New York district at the head of all districts, not only in the total sold but in the excess subscribed above the quota assigned. The number of subscribers was less than in either the third or fourth loans, and the average subscription was greater than in either of those loans. The reduction in the number of subscribers is accounted for mainly on the ground that many subscribers on partial-payment plans were still paying on the two previous loans. Furthermore, the sense of universal obligation present in the campaigns when the country was still at war had somewhat passed. The increase in the size of the average subscription was a reflection of the greater financial attractiveness of the Victory loan. Government deposits.-—-The number of banks qualifying as depositaries increased from 867 in the fourth loan to 889 in the Victory loan. Custodians of collateral acted in 35 cities, a reduction from the earlier loans. Collateral agents of the second class for the sale of Treasury savings certificates, war-savings certificate stamps, and thrift stamps, were appointed by the Federal Reserve Bank, which received the securities pledged by them as collateral. 328 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. This year internal-revenue collectors deposited with us for the credit of the Treasurer of the United States, checks representing payments of income and excess-profits taxes, but these funds were not redeposited with depositary banks as was the case during June, 1918. inasmuch as the funds were required in most instances for immediate disbursement. Government disbursements.—Disbursements hy the Treasury Department through this bank have continued in very large volume throughout 1919. Nearly 13,000,000 Treasury checks were handled as against 11,100,000 in 1918, but the average size has been somewhat smaller. Consequently, the total of nearly $5,000,000,000 for a year ago was not reached. The day of largest transactions was on April 21, when 96,153 checks were handled. EXHIBIT A.—Classification of earning assets of the Federal Reserve Bank of New York, [In thousands of dollars.] Discounted paper se- Other discured b v United counted paper. Stales war obligations. Date. 3 10 . . . . 17 24 Feb 31 7 14 20 . . . .... 28 Mar 14 21 Apr. 28 4 11 18 25 May 2 9 . . 16 23 June 29 6 13 20 27 July 3 11 . . . 18 Aug. 25 1 15 22 29 Sept. . . . . 8 . . 5 12 19 Oct. 26 3 10 17 24 . Mov. 31 14 28 Dec. 5 12 19 . . . 691,786 644,980 56?, 446 663,904 591,242 639,721 731,071 707,364 741,979 775,574 761,365 6/6,608 661,987 628, 697 692,682 671,695 685,022 678,623 741,711 792,953 708,974 703,252 634,661 630,112 584,513 567,632 674,449 742,901 fi67,802 649,147 644,096 641,566 615,433 619,361 656,305 672,070 611,442 483,053 617J837 674 010 697,763 698,653 J 675,3?6 702,142 795,212 721,344 701 956 753,834 ! 667,512 : 654 401 515,035 584,588 26 1 + 2. 736,093 684,239 602,981 710,557 633,761 688,947 782,520 754,281 787,038 804,731 790,509 708,660 691, 487 654,269 724,189 700,439 709,067 700,651 761,885 825,571 732,396 729,929 673,610 660,756 624,295 621,117 740,123 805,243 729,577 717,893 702,216 695,191 49 ^ 853 665,286 46,978 666,339 43,891 70:>, 196 52,791 724,861 49,692 661,134 45,539 528.592 47,707 665J544 72,578 746,588 104,877 802,640 116,668 815,321 105,083 780,419 130,880 833,022 109,139 904,351 98,759 820,103 88,855 790,811 107,068 860,902 119,342 786,854 144,924 799.325 143,537 658,572 203,606 788,194 44,307 39,259 33,535 46,653 42,519 49,226 51,449 46,917 45,059 29,157 29, 234 32,052 29, 500 25,572 31,507 28,744 24,045 22,028 20,174 32,618 23,422 26,677 38,949 30,644 39,782 53,485 65,674 62,342 61,775 68,746 58,120 Per cent 1-5-3. 94. 0 94.3 94. -1 93.4 87.5 92.9 93. 4 93.8 94.3 96.4 96.3 95.5 95. 7 96.1 95. 6 95.9 96.6 96. 8 97.4 96.0 96.8 96.3 94.2 95.4 93.6 91.4 91.1 92.3 91.5 90.4 91.7 92.3 92.5 92.9 93.7 92.7 92.5 91.4 92.8 90.3 86.9 85.7 86.5 I 84.3 i 87.9 | 88.0 | 88.8 | 87.5 ! 72.7 ' 81.9 ! 78.2 : 74.2 ! Bills bought in open market. Total bills dis- United Totai counted States earning and ecurities. at bought. 76,294 812,387 79,628 763,867 84,148 687,129 93,385 803,942 83,727 717,488 64,524 753,471 54,927 837,447 41,399 795,680 43,325 830,363 40,088 844,819 16,897 807,496 27,158 735,818 41,329- 732,816 55,612 709,881 57,017 .781,206 54,730 755,169 46,903 755,970 47. 311 747,962 43,737 805,622 42,691 868,262 44,424 776,820 44.853 774,782 51J779 725,389 71,992 732,748 80,948 705,243 100,822 721,939 113,047 853,170 119,363 924,606 91,563 821,140 91,497 809', 390 98,002 800,218 106,980 802,171 111,654 776,940 105,843 772,182 94,288 794,484 71,177 796,038 70,955 732,089 73,521 602,113 76,4|01 741,945 87,682 834,270 81,400 883,040 85,315 900,636 97,925 878,344 85,373 918,395 54,323 958,674 77,896 897,999 86,379 877.190 97,021 957,923 131.865 918,719 147,'030 946,355 179,382 837,954 191,312 979,506 43,241 855,628 76,136 840,003 169,139 856,268 47,852 851,794 157,247 874,735 47,896 801,367 49,426 886,873 54,119 849,799 60,138 890,501 61,096 905,915 64,852 872,348 65,826 801,644 65,394 798,210 66,179 776,060 70,850 852,056 70,827 825,996 70,126 826,096 70,658 818,620 76,026 881,648 76.713 944,975 69,639 846,459 69,834 844,616 67,492 792,881 67,628 800,376 64,818 770,061 65,253 787,192 58,684 911,854 60,371 984,977 59,086 880,226 60,309 869,699 62,887 863,105 64,498 866,669 77,951 854,891 66,477 838,659 67,811 862,295 68,640 864,678 826,148 194,059 734,206 132,093 816,761 64,816 905,048 70,778 954,118 71,078 974,408 73,772 953,124 74,780 994,395 76,000 76,015 1,034,689 76,519 974,518 76,871 954,061 78,991 1,036,914 76.714 I 995,433 69,461 ! 1,015,816 98,800 936,754 68.654 1,048,160 329 DISTRICT NO. 2—NEW YORK. EXHIBIT B.—Movement of gold and cash reserves, Federal Reserve note and net deposit liabilities, etc, Federal Reserve Bank of New York. [In thousands of dollars.] Date. Jan. 3. Feb. Mar. Apr. * May June July Aug. Sept. Oct. Nov. Dec. 10, 17. 24. 31. 7. 14. 20. 28. 7. 14. 21. 28. 4. 11. 18. 25. 2. 9. 16. 23. 29. 6. 13. 20. 27. 3. 11. 18. 25. 1. 8. 15. 22. 29. 5. 12. 19. 26. 3. 10. 17. 24. 31. 7. 14. 21. 28. 5. 12. 19. 26. 1 Gold reserves. Total cash Federal Reserve notes in actual circulation. Net deposits. (3+4) 686,208 617,160 588,365 592,552 568,367 625,547 568,670 588,156 588,288 596,479 649,122 728,407 735,392 779,865 697,747 734,509 747,072 756,684 700,700 649,596 744,924 751,488 766,149 737,357 771,515 782^ 982 656,095 615,349 614,174 642,194 696,744 645,930 582,503 557,162 527,446 562,836 592,478 622,8S6 640,130 633,955 556,746 552,497 613,344 575,979 568,105 615,815 632,927 610,953 590,905 577,407 608,107 570,438 734,896 670,308 640,515 644,321 621,297 677,213 620,327 64 •"», 463 639,268 647,494 701,213 780,836 788,481 832,649 751,406 787,011 801,611 80S, 905 752,070 702,275 790,636 802,172 818,039 789,165 823,384 834,523 706,190 667,228 662,674 689,885 745,301 693,519 631,071 606,270 577,759 614,413 643,875 674,216 690,902 686,215 610,291 605,871 663,929 625,606 618,135 665,565 683,192 660,539 641,012 626,910 654,376 616,040 724,932 691,455 665,688 650,587 647,913 650,046 664,613 666,858 677.619 689', 212 710,002 715,569 723,160 736,433 738,128 738.169 738,812 741,385 751,273 742,067 735,462 742,390 736,674 736,288 735,226 737,437 762,915 751,780 742,980 739.165 745,918 745,723 748.166 749,975 752,283 758,794 752,893 747,239 753,135 761,705 759,830 758,191 750,809 750,715 763,700 755,745 758,797 767,398 774,971 778.170 806,615 824,944 795,455 747,131 759,157 771,261 772,464 751,587 765,496 745,635 776,240 787,777 786,270 789,168 780,338 793,240 786,894 796,002 808,476 805,298 800,989 822,557 825,936 822,577 792,185 770,263 774,416 800,002 769,602 814,052 713,164 730,257 770,844 807,338 643,504 598,747 590,729 620,946 615,945 558,271 636,108 720,991 694,009 714,130 754,133 754,631 772,241 765,963 757,926 808,095 738,430 740,880 660,213 714,874 1,520,387 1,438,586 1,424,845 1,421,848 1,420,377 1,401,633 1,430', 109 1,412,493 1,453,859 1,476,989 1,496,272 1,504,737 1,503,498 1,529,673 1,525,022 1,534,171 1,547,288 1,546,683 1,552,262 1,564,624 1,561,398 1,564,967 1,528,859 1,506,551 1,509,642 1,537,439 1,532,517 1,565,832 1,456,144 1,469,422 1,516,762 1,553,061 1,391,670 1,348,722 1,343,012 1,379,740 1,368,838 1,305,510 1,389,243 1,482,696 1,453,839 1,472,321 1.504,942 I', 505,346 1,535,941 1,521,708 1,516,723 1,575,493 1,513,401 1,519,050 1,466,828 1,539,818 Ratio of cash reserves to net deposits Federal Reserve note liabilities combined. Reserve percentage, i 48.3 46.6 45.0 45.3 43.7 48.3 43.4 45.3 44.0 43.8 46.9 51.9 52.4 54.4 49.3 51.3 51.8 52.3 48.4 44.9 51.0 51.3 53.5 52.4 54.5 54.3 46.1 42.6 45.5 46.9 49.1 44.7 45.3 45.0 43.0 44.5 47.0 51.6 49.7 46.3 42.0 41.2 44.1 41.6 40.2 43.7 45.0 41.9 42.4 41.3 44.6 40.0 330 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. So FEDERALRESERVE BANK OF NEW YORK MOVEMENT OFEARNING ASSETS DURING CALENDAR YEAR 1919. 3I 200 too • 0 unnWSTATEy SSEC 200 100 0 ACCEPTANCESB 100 * too ' UES. ^^ mm dmHT. m 200 too o CO 80 80 60 60 40 20 20 0 0 PERCEISrAOE OF WAR PAPER TO TOTAL DISCOUNTS. tooo (00O\ 300 aoo POO TOTAL BILLS DISCOUNTED "D; AMD WAR PAPER;W". 1200 1100 1200 1100 TOTAL EARtWiG ASSETS. 331 DISTRICT NO. 2—NEW YORK. i FEDERALRESERVE BANKOF NEW YORK NET DEPOSIT LIABILITY, F.R. NOTE CIRCULATION, CASHRESERVES,Am>RE$ERVERATIO.I9l9. i 70 60 70 60 50 40 30 20 10 0 y SO V 4O 30 20 10 O RESERVE RATIO, (PERCENTAGE OF C+L). F.R. nOTECIRCULAT/O/1. 1800 1800 1600 1600 1400 1400 I2OO 1OOO ft, ANPTOTAL RESERVES, "C. JAM. FEB. MCH. APRL MAY JUtit JULY AUG. SEPT OCT. IHOY. DEC. 178983—20 332 ANNUAL REPOBT OF THE FEDERAL RESERVE BOARD. The statement of condition of the Federal Reserve Bank of New York as of December 31, 1919, compared with that for December 31, 1918, is as follows: EXHIBIT C.—Statement of condition. RESOURCES. Reserves: Gold w i t h Federal Reserve agent Gold redemption fund for Federal Reserve n o t e s . Gold settlement fund Gold bullion G old coin and certificates Gold with foreign agencies legal-tender notes Silver certificates and coin Total reserves. Loans and discounts: Bills discounted for member banks Acceptances purchased United States bonds United States one-year Treasury notes United States certificates of indebtedness United States securities held to secure Federal Reserve B a n k n o t e s . Total investments.. Other resources: Federal Reserve notes and other cash Federal Reserve B a n k notes R e d e m p t i o n fund Federal Reserve B a n k notes I t e m s in process of collection Exchanges for clearing house and s u n d r y cash items Due from foreign banks *. Interest accrued on United States bonds Deferred charges and prepaid expenses Advances made for Treasury United States account expenses L iberty loan and war savings committee Real estate Total other resources. Total resources Capital: Capital paid i n . Surplus". Total capital fund. Deposits: Due to United States Government Due t o foreign G overnments and banks Due to m e m b e r banks—reserve balances Due to member banks—uncollected funds Due to nonmember banks, deposit account Due to other Federal Reserve Banks—collected funds Due to other Federal Reserve Banks—-uncollected funds Officers' checks outstanding Gross deposits.. Notes: Federal Reserve notes outstanding Federal Reserve B a n k notes outstanding-. Total. Other liabilities: Depreciation reserve account General reserve account Unearned discount and interest Participation certificates Liberty loan bonds Reserve franchise t a x Due to United States Government as franchise tax All other liabilities Total other liabilities.. Total liabilities Dec. 31, 1919. Dec. 31, 1918. $306 ,756,215.00 25! 000,000.00 U, 976,859. 68 9L 597,931.24 62, .635,827.49 481 194,795.30 770,842. 00 , 422,808. 50 $274,392,165.00 25,000,000.00 66,790,455.76 79,101,340.83 179,674,640.70 595,355,279. 21 672.528,785.14 790,803,288. 24 202,902,609.54 1,30(5,800.00 697,341,455.69 77,576,632.94 1,447,700.00 521,000.00 93,374,500.00 34,955,000.00 8,445,500. 00 59,276,000.00 43,038,200.00 4,531,976.85 1,062,734,197.78 905,216,288. 63 132,138,895. 83 3,527,000.00 2,900,000.00 194,382,544.39 54,532,017.18 1,141,326.31 543,500.33 164,525.49 97,048,219.95 751,000.00 1,689,250.00 145,736,177.53 36,401,491.78 6,770,374.11 172,87K. 27 150,194. 29 977,835. 29 3,094,050.00 393,401,694.82 2,051,491,171.81 3,023,724.56 2,317,692.39 294,061,002. 88 1,871,806,076.65 22,390,750.00 45,081,932.63 20,820,100. 00 8,322.040.00 67,472,682.63 29,142,140.00 5, 849,025.28 27, 569,776.45 755. 951,452.59 88: 568,032.65 11] 655,844.36 964,615. 44 72. 337,079.52 7; 170,350.28 6, 5,705, 629.16 95,976, 172.85 705,062,061.27 72,173, 899.90 5,382,207.29 78,986, 137.26 6,934, 425. 41 4,998,919.04 976,066,176.57 975,219,452.18 939,715,955. 00 58,200,000.00 819,015,835.00 33,785,000.00 997,915,955. 00 852,800,835.00 526,621.35 822,682. 42 2,737,510.26 20,130.00 205,880.00 299,375.00 1,308,769.90 34,410.00 12,795,214. 57 2, 703,893. 63 3, 225,519. 95 10, 036 357. 61 14 ,643 ,649.47 2,051, 491 171. 81 1,871 ,806 ,076.65 DISTRICT NO. 3—PHILADELPHIA. R. L. AUSTIN, Chairman and Federal Reserve Agent. As was to be anticipated from the reports made from time to time as to the activity of business, the operations of the Federal Reserve Bank of Philadelphia during the year 1919 were very much larger than for the previous year. GENERAL BUSINESS CONDITIONS. At the opening of the year the business outlook was uncertain and operations were still dominated by conditions incident to the ending of the World War. Cancellations of Government contracts and civilian orders also had a depressing effect. The inability of buyers and sellers to agree on prices resulted in a decrease in the volume of business and the appearance of some unemployment which lasted for three or four months, but at the end of the year the majority of the business concerns of the district report orders on hand far in excess of the capacity to fill them. Business conditions generally, as far as demand and supply are concerned, are good almost beyond precedent. Skilled workers are scarce, and the disinclination of operatives to do a full day's work is curtailing production. Prices of raw materials have kept pace with the extremely high prices demanded for manufactured goods, and the amount of capital required to conduct business has greatly increased, making necessary much larger lines of credit. EARNINGS AND EXPENSES. Net earnings of the last fiscal year have been extraordinarily large. Total earnings show unusual increases, and total expenses have consumed only 21 per cent of them, as compared with 25 per cent in both 1918 and 1917. Total earnings for 1919 were $8,609,000 and current expenses were $1,775,000, leaving net earnings of $6,834,000. The net earnings were 89 per cent of the average capital stock for the year, as compared to 46 per cent in 1918 and 12 per cent in 1.917. After the deduction of the reserve for depreciation on United States securities and other sundry purposes, the net amount available for dividends and surplus was $6,6 9,000. Dividends at the rate of 6 per cent were paid for the year, and $6,196,000 was transferred to surplus fund, bringing the total of that fund up to $8,80, ,000, or approximately 111 per cent of the paid-in capital stock at the end of the year. Exhibit C shows comparative statements of condition at the ends of the last three years. In viewing the earnings for the year, it should be borne in mind that a large part of the lending power of the bank is derived from its noteissuing privilege, a function conferred by the Government. Had its 333 334 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. power to extend credit depended entirely upon its deposits and capital, the bank would have been of comparatively little aid to the business community, but through its note issues, which averaged $212,000,000 for the year and were approximately twice the average deposits of member banks, it was able to serve the community as it did. RESERVE POSITION. The reserve ratio of this bank hovered between 40 and 45 per cent all the year, the higher percentages being prevalent early in the year. The cash reserve in 1919 averaged approximately $130,000,000, as compared with $150,000,000 in 1918. Federal reserve note liabilities held fairly steady at levels considerably in excess of the average figures for 1918, and deposit liabilities were also larger. The demands on the bank for loans and discounts to carry the large amount of subscriptions to Government bonds, notes and certificates received from this district, so reduced its reserve that it was compelled to rediscount constantly throughout the year. Exhibit B gives weekly figures showing items of interest in connection with the reserve position. An illustrative chart shows the reserve position during the past year. DISCOUNT RATES. The discount rates established early in 1918 were continued in force until November 6, 1919. In April of this year a rate was quoted on collateral notes of member banks and rediscounts secured by bonds of the War Finance Corporation. This rate was set at 1 per cent above the rate prevailing on commercial paper of the same maturity, as required by the act. On November 6 a schedule of rates was put into effect which, in the main, removed the differential in favor of collateral notes of member banks and paper of short maturities. Further advances were made on December 16, at which time the rates on loans secured by Government securities (with the exception of certificates of indebtedness) were advanced to the level of the rates on commercial paper. DISCOUNT OPERATIONS. The discount operations were influenced chiefly by the fiscal operations of the Treasury during the year. Including the Victory loan and the various issues of loan and tax certificates there was placed in the Third District more than $1,000,000,000 of Government securities during the year. The banks not only bought extensively of the certificates themselves, but they encouraged other purchasers, and particularly so in the case of the Victory loan. They became well loaned up, and in order to meet commercial demands they made free use of the rediscounting privilege. The applications for loans received were far larger than in 1918 and increased steadily as the year progressed. Note obligations made up the bulk of the investments. Very little commercial paper was offered for rediscount to maturity till the last months of the year, the banks preferring to make use of the so-called ^rediscount under agreement to repurchase/7 whereby they could secure advances for 335 DISTRICT NO. 3—PHILADELPHIA. 15 days at the 15-day rate. The extensive use that was made of the short-term borrowing served to swell the totals of discount operations. The average daily earning assets of the bank show steady advances up to the end of the year. In December the average was $243?8097000; as compared with $197,818,000 in December, 1918. The following table shows the average daily holdings of the several classes of earning assets for each month and for the year 1919, while their movement by weeks during the year is shown in Exhibit A. Earning assets—Average daily amount. Bills discounted. January February March April p May June July August September.. October November.. December.. 1 Total. 1918 $177,059,450 185,697,841 i 187,159,834 188,689,151 $2,872,846 2,232,553 1,919,778 1,403,379 907,967 940,800 702,571 689,749 843,225 632,484 1,394,053 4,442,333 $11,812,254 12,631,828 15,524,916 18,347,500 20,312,496 23,215,560 25,307,774 27,337,016 29,304,400 30,431,803 31,663,083 32,541,238 $191,744,551 200,562,223 204,604,528 208,440,030 213,595,405 216,680,799 214,600,141 221,288,397 226,759,699 235,140,228 238,126,494 243,809,469 193,194,965 75,556,041 1,581,247 18,375,123 23,262,740 7,135,005 218,038,952 , , 192,374,941 192,524,439 188,589,796 193,261,631 196,612,073 204,075,940 205,069,357 206,825,891 Average, 1919 Average, 1918 United Bills bought. States securities. i $56,592,574 53,576,334 58,196,659 63,680,782 69,155,715 77,315,535 88,626,133 102,304,319 114,640,100 138,135,408 189,486,768 197,818,495 101,067,237 Small amount of municipal warrants included. The earnings from discounted paper and open-market purchases, including United States securities, were $8,550,000, as compared with $4,230,000 in 1918, though the average rate of return was only 3.94 per cent as compared to 4.19 per cent in 1918. United States securities afforded an average rate of return of only 2.13 per cent as compared with 3.27 per cent in 1918, but this is accounted for by the large proportion of one-year notes of the United States, yielding 2 per cent, which were held to secure Federal Reserve bank notes. Last year United States bonds and certificates formed a considerable percentage of the total amount of United States securities held. BILLS DISCOUNTED. Total bills discounted during the year amounted to $10,736,435,000; in 1918 this total was $1,857,642,000. The number of banks accommodated this year was 494. Notes secured by United States Government obligations formed a very large proportion of the investments of the bank. On the last Friday of December the ratio of paper secured in this manner to total discounted paper was 86 per cent of the total paper under discount, as compared with 89 per cent on the corresponding Friday in 1918. The increase in discount rates on short-term paper early in November caused many of the banks to decrease their presentations of collateral notes and substitute in their stead their customers' paper secured in like manner. Notes secured by War Finance Corporation bonds were discounted in small amount. Until the end of the year the commercial paper presented was inconsiderable, but the increased rates on Government secured paper instituted in December resulted in larger offerings. Bankers' and 336 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. trade acceptances played an unimportant part in the discount operations of the year and did not form a total at all comparable to that of 1918. Due to the industrial predominance of the district, agricultural paper was offered only in small amounts. Total discounted paper held at the end of the year was $209,854,000; at the end of 1918 the figure was $178,819,000, thus indicating an increase of 17 per cent during the year. OPEN-MARKET OPERATIONS. The open-market operations of this bank during the past fiscal year Were practically negligible. The demands on its resources through the discount of paper offered by member banks precluded the investment of large sums in paper to be purchased elsewhere. Bankers' acceptances in foreign transactions formed the major portion of such investments. Dollar exchange bills were bought only in the first month. Total operations under this heading for the year were $14,048,000; in 1918 they were $120,008,000. FEDERAL RESERVE NOTES. The circulation of Federal Reserve notes fell off very noticeably during the first few months of the year and attained a low point of $200,498,000 on June 21. Exhibit B shows the general trend during the past year. The decrease in the beginning of 1919 can be traced to the falling off in business. The increased activity which began early in the year was reflected in larger circulation in August, and a steady increase in such issues continued until almost the end of the year. The maximum amount of notes ($241,348,000) was in circulation on December 24, as compared to the former high level of $235,586,000 on December 26, 1918. Immediately after Christmas the notes began to return in large amounts. Notes of the smaller denominations have been in greatest demand, with $10 and $20 notes forming the bulk of those issued to the Federal Reserve Bank. There has been very little call for notes of higher denominations than $100, though a reserve supply is maintained to care for any need that may arise. FEDERAL RESERVE BANK NOTES. Demand for notes of small denominations continued throughout the year, and was especially urgent in the month of December, due to the great activity in retail trade. This demand was met by the issuance of Federal Reserve bank notes in place of silver certificates which were retired under the Pittman Act. The amount of notes in actual circulation increased from $8,926,000 at the end of 1918 to $28,791,000 at the end of 1919, or 223 per cent. Melting of silver dollars authorized by the Pittman Act was discontinued in May. COUPON DEPARTMENT. The work of the coupon department has been more than triple that of 1918 in the number of items handled and their total amounts. Fourteen persons are now employed in this division. The number of items handled has run as high as 111,000 a day, and the amount has DISTRICT NO. 3 PHILADELPHIA. 337 been in excess of $1,700,000. The distribution of the maturities of Government coupons over the various months of the year has created a steady demand on the services of this department. The total number of items handled during 1919 was 8,258,108, as compared to 2,728,361 in 1918. The value of these coupons during the last fiscal year was $47,063,622.79, in comparison to $11,735,022.64 in 1918. COLLECTION DEPARTMENT. The work of the collection department was much larger than the previous year and increased during the year to a high point in December. No charges are made on items except the actual cost of postage, insurance, and registration on maturing coupons, bonds, and other securities attached to drafts sent for collection and 15 cents on items returned unpaid to member banks. GOLD-SETTLEMENT FUND. The operations through the gold-settlement fund were much larger than in 1918, record figures being reached in December of this year. Payments received through this fund totaled $7,630,713,000 in comparison to $5,440,137,000 in 1918, and the amounts paid to other Federal Reserve Banks were $7,636,447,000 as compared to $5,434,826,000 in the previous year. TRANSIT AND CLEARINGS. The transit department reports operations for the year on a much larger scale than in 1918. In dollars this increase is not so noticeable, the total value of all items handled this year being $13,843,000,000, as compared with $11,292,000,000 in 1918. In point of number of items handled, however, very large increases are reported, the number of items passing through the department being 34,886,768 as compared with 17,133,761 in 1918. This points to a considerable decline in the average amount of each item, and, as the tables which follow demonstrate, this is particularly true of such items as were drawn on Philadelphia banks. The department handled as many as 156,000 items in a day. The campaign to extend the par system to all banks in the district was rewarded with complete success. At the beginning of the year items were received without exchange charges by all member banks and all nonmember banks with the exception of 115. Continual efforts were made to have these 115 institutions remit at par, and by July 1 the number had been reduced to 46. Shortly before this time it was decided that, beginning July 1, this bank would receive and collect all items at par, collections on institutions making exchange charges being handled through the express companies. Further efforts on the part of this bank resulted in the bringing of all institutions into the collection system. 338 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. OFFICERS AND DIRECTORS. Richard J;. Austin, chairman and Federal Reserve agent; Henry B. Thompson, deputy chairman; E. Pusey Passmore, governor; Edwin S. Stuart, deputy governor; Willliam H. Hutt, deputy governor.] Class. B Group 1 Group 2 Group 3 [Group 1 | Group 2 lGroup3 Name. Residence. Joseph Wayne, jr., president Girard National Bank, Philadelphia, Pa. Francis Douglas, cashier First National Bank, Wilkes-Barre, Pa. M. J. Murphy, care of A. B. Leach & Co., bankers, New York City. Alba Johnson, vice president Southwark Foundry & Machine Co., Philadelphia, Pa. Edwin S. Stuart, merchant, Philadelphia, Pa Charles K. Haddon, vice president Victor Talking Machine Co., Camden ,N. J. Richard L. Austin Henry B. Thompson, president U. S. Finishing Co., New York City. Charles C. Harrison Philadelphia, Pa.. Wilkes-Barre, Pa. Clarks Green, Pa.. Rosemont, Pa Philadelphia, Pa.. Camden, N. J { Term expires Dec. 31,1920 Dec. 31,1921 Dec. 31,1919 Do. Dec. Dec. Philadelphia, Pa.... Dec. Wilmington, Del.... Dec. Philadelphia, Pa.... Dec. 31,1920 31,1921 31,1920 31,1919 31,1921 Mr. R. M. Miller, jr., cashier of the Farmers & Mechanics National Bank of Phoenixville, Pa., and Mr. Frank W. Labold, of this bank, were elected assistant cashiers on May 1, and Mr. Samuel Earle, paying teller of the bank, was elected an assistant cashier on December 18. Mr. R. D. Stockton was elected comptroller on January 2 and assumed office on February 1. The resignation of Mr. Thomas Gamon, jr., an assistant cashier of the bank, was presented to the board of directors at the meeting of December 4. At the meeting of the board of directors on December 31, the officers were confirmed in their appointments for the coming year and Mr. Levi Rue, president of the Philadelphia National Bank, was again selected to represent the Third Federal Reserve District on the Federal Advisory Council. The terms of office of Mr. Michael J. Murphy, representing the group 3 banks as a class A director, and of Mr. Alba B. Johnson, representing the group 1 banks as a class B director, expired on December 31, and they were reelected for terms of three years from January 1, 1920. The increase in the operations of the bank has necessitated many additions to the clerical force. At the end of this year there were 627 employees and 12 officers, as compared to 419 employees and 11 officers at the end of 1918. The increased operations of the bank not only resulted in a larger personnel, but an increased need for space as well. About 75 per cent of the available room in its building is occupied by the bank. The contemplated construction of a new vault in the basement of the main banking building made necessary the rental of the first floor of an adjoining building. The comfort and convenience of the clerical force has been considered as much as possible, and on July 8 a cafeteria was opened on the premises of the bank with complete equipment furnished by the bank. Meals are furnished at cost; its service has been satisfactory and has proved a physical and financial benefit to those connected with the institution. In connection with the Federal Reserve Club, a monthly magazine has been issued, and educational courses are being prepared. 339 DISTRICT NO. 3—PHILADELPHIA. THE THIRD FEDERAL RESERVE DISTRICT. The boundaries of the district remain unchanged and include all of Delaware, that part of New Jersey south of the northern boundaries of Mercer, Burlington, and Ocean Counties, and that part of Pennsylvania east of the western boundaries of McKean, Elk, Clearfield, Cambria, and Bedford Counties. The total area is 36,844 square miles, making this the smallest of the Federal Reserve districts territorially. The population at the last census was 6,632,611, or 6.4 per cent of the total population of the country at that time. At the end of the fiscal year our records show that there were 640 national banks and 453 State institutions, 38 of the latter class being members of this Federal Reserve Bank. The total net additions since January 1 to the list of national banks are 13, two of which are accounted for by the conversion of State banks into national banks. The total resources of all banks and trust companies in the district on November 15 were $3,011,090,000, of which the national banks totaled $1,741,542,000, or 58 per cent. Total resources in 1918 were $2,702,193,000, indicating an increase of 11 per cent during 1919. The table given below analyzes the figures compiled in greater detail by States: Banking resources—District No. 3. [000 omitted.] Pennsvlvania: National banks (546) State institutions (371) Total (917) New Jersey: National banks (73) State institutions (45) Total (118) Delaware: National banks (19) State institutions (33) Total (52) Total: National banks (638) State institutions (449) Total (1,087) Undivided Individual Bank profits. deposits. deposits. Total resources. Capital. Surplus. $72,202 80,619 $104,433 119,354 $28,625 33,418 $966,054 806', 804 $112,398 8,727 $1,583,773 1,078,833 152, 821 223,787 62,043 1,772,858 121,125 2,662,606 6, 970 5,766 7,419 6,362 3,706 1,943 109,738 90,964 1,640 895 137,256 111,591 12,736 13,781 5,649 200,702 2,535 248,847 1,429 4,721 1,532 5,362 913 2,447 15, 245 68,750 605 1,058 20,513 79,124 6,150 6,894 3,360 83,995 1,663 99,637 80,601 91,106 113,384 131,078 33,244 37,808 1,091,037 966,518 114,643 10,680 1,741,542 1,269,548 171, 707 244,462 71,052 2,057,555 125,323 3,011,090 The capital and surplus of the member banks increased somewhat during the year. This increase amounted to $10,682,000 in the case of national banks in the district between the dates of August 31, 1918, and September 12, 1919. The borrowings of national banks on their bills payable increased very largely, and the percentage of these borrowings from the Federal Reserve Bank to total borrowings on such paper was 99 per cent in the fall of 1919, as compared to 95 per cent in the previous year. Member banks in Philadelphia, Scranton, Camden, and Wilmington for the past two years have been reporting to this bank weekly, the principal resource and liability items appearing in their statements. The figures given are for the last Friday in each month of and 1919. Digitized for1918 FRASER 340 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Member banks in Philadelphia, Camden, Scranton, and Wilmington. [000 omitted.] Loans All ! United secured other by States loans securi- United and States ties owned. securi- investments. ties. 1918. January February March April May June July August September October November December 1919. January February March..: April May June July August September October November GovTotal Reserve Cash ernloans Time with Net and ment in deFederal demand invest- Reserve vault. deposits. posits. dements. Bank. posits. $34,882 $25,560 $615, 270 $675,712 $59,446 S22,490 53,890 22,527 613,004 679,421 58,607 21,974 74,820 21,488 600,504 ! 696,812 53,562 19,771 96,634 21, 213 611,090 728,937 57,349 20,419 77,459 35,849 633,752 I 747,060 54,591 20,469 66,427 38,543 630,130 I 735,100 53,300 19,841 77,633 42,571 601,371 721,575 50,060 18,974 89,504 44, 245 609, 794 743,543 55,311 18,617 114,169 45, 796 620,941 [ 780,906 65,59S 19,479 153,014 160,091 621,928 935,033 68,969 20,867 114,415 170, 278 620,611 905,304 OP-, 412 21,053 106,426 157,618 619,529 883,573 58,120 25,612 153,235 177,735 179,870 177,769 189,440 125,065 105,101 119,014 123,Of8 103,182 94,018 147,639 145,429 142,292 144, 911 165,047 176,968 172,910 165,804 161,534 153,211 123, 930 622,872 923,746 599,581 922,545 623,256 945,413 614, 232 936,912 642,082 996,569 649,120 j 951,153 645,401 923,816 665,248 j 950,066 675,998 960,630 685,688 ! 945,081 I 919,816 Number of banks reporting. $567,847 569.913 566', 712 587,163 575,703 564,865 553,158 584,633 628,748 606,679 615,753 629,478 115,506 15,876 15,578 14, 965 13,796 14,427 15, 246 14,311 16,391 15,987 15,801 18, 972 $28,585 40,099 34,863 43,756 70, 865 76,313 17,359 32,066 25,742 30,179 27,910 31, 235 46 47 47 49 49 49 49 50 52 53 54 56 632, 839 638,823 653,426 654,734 651,349 635,929 646,191 664,273 663,812 675,267 666, 231 20,086 21,354 22,300 22,016 20,634 20,627 21,3C3 21,783 22,122 22,453 22,440 55, 088 45,747 38,963 27,276 62,338 48, 818 26,564 32, 213 54,732 27,484 11,366 56 56 56 56 56 56 56 56 56 56 56 64,774 19,012 67,036 19,705 61,527 19,515 67,363 19,293 65,490 18,278 63,113 18,411 65,187 17,184 69,615 16,062 74,574 16,550 69,658 17,108 60,354 18,333 An analysis of the table discloses that the movements of the various classes of loans and investments reflect clearly the issuing of Government securities of various kinds. The peak of the United States securities owned was reached in May, 1919, while the high point in the loans secured by United States securities was reached in June. The reserves held with the Federal Reserve Bank averaged higher in 1919 than in 1918, but the amount of cash in vault was smaller. Deposits show a natural increase in keeping with the larger amounts of loans and investments. This table includes a larger number of banks in the year 1919 than in 1918, but the figures of the banks added to the list do not obscure the trends to any considerable extent. Toward the end of the period covered the banks reported their loans and investments in greater detail and these figures for December 26, 1919, are given below: Amount. Percent. United States bonds to secure circulation Other United States bonds, including Liberty bonds United States Victory notes , United States certificates of indebtedness $11,097,000 29,426,000 12,283,000 55,836,000 1.2 3.2 1.3 6.1 Total United States securities owned Loans secured by United States war obligations: (a) Liberty bonds (b) Victory notes (c) Certificates of indebtedness Loans secured by stocks and bonds other than United States securities. All other loans and investments 108,642,000 11.8 74,561,000 26,992,000 858,000 207,032,000 498,123,000 8.1 3.0 .1 22,6 54.4 915,351,000 100.0 Total loans and investments 341 DISTRICT NO. 3—PHILADELPHIA. Christmas savings funds have been conducted by many of the banks of the district. In response to a questionnaire sent out by this bank, returns were received from 75 to 80 per cent of the banking institutions, and their reports indicate Christmas savings fund deposits of $9,789,000 in 1919, as compared to $8,174,000 in 1918. Increases in regular savings accounts were reported also. FIDUCIARY POWERS. Some of the national banks of the district appreciate the advantages of exercising fiduciary powers. The applications of 48 banks, permitting them to exercise full fiduciary powers, were approved during the year. The total number of banks in the district exercising full powers is now 59, and in addition, 38 others had been granted partial powers under the act as originally passed. National banks possessing such powers are located in 72 cities and towns of the district. The following table shows their distribution by States: T* claw are Now Jersey Pennsylvania Total . . Full powers. Partial powers. 2 10 47 2 5 31 15 78 59 38 97 Total. POWER TO ACCEPT UP TO 100 PER CENT. No additions were made to the list of banks authorized to accept up to 100 per cent of capital and surplus during the past fiscal year. The following banks, all of which are located in Philadelphia, possess this power: Bank of North America, First National Bank, Girard National Bank, Philadelphia National Bank, Corn Exchange National Bank, Fourth Street National Bank, Market Street National Bank, Tradesmens National Bank. STATE BANK MEMBERS. The pressure of other business has precluded the possibility of conducting an active campaign for the membership of State banks and trust companies during the last year. However, no opportunity has been neglected to bring to the attention of eligible nonmember banks the advantages of membership in the system. The number of institutions which were admitted during the year was 11, the names and resources being as follows: Bank name. Riverside Trust Co.. .• Peoples Savings & Trust Co Milford Trust Co TJnion Banking & Trust Co Berks County Trust Co Equitable Trust Co Burlington City Loan & Trust Co Bankers Trust Co X/ewistown Trust Co Orange Trust Co Schuylkill Haven Trust Co Location. Riverside, N. J Hazleton, Pa Milford Du Bois,Del Pa Reading, Pa Atlantic City, N. J Burlington, N. J Atlantic City, N. J Lewistown, Pa Huntingdon, Pa Schuylkill Haven, Pa Admitted. Jan. Jan. Mar. Mar. May June June July Sept. Oct. Oct. 3,1919 13,1919 27,1919 28,1919 1,1919 20,1919 25,1919 11,1919 27,1919 7,1919 17,1919 Total resources. $2,039,889 2,933,058 1,077,830 2,173,668 3,917,503 3,166,688 1,748,441 576,035 752,153 706,752 1,307,027 342 ANNUAL. REPORT OF THE FEDERAL RESERVE BOARD. This list brings the number of State institutions which have entered the Federal Reserve System in this district up to 40, but, due to the conversion of the Bank of Commerce and the Drovers & Merchants Bank, both of Philadelphia, into national banks, the number now stands at 38. There are 270 eligible nonmember State institutions in the district, having total resources of approximately $668,000,000. The member State institutions represent 41 per cent of the total resources of all eligible member and nonmember State banks and trust companies. The table below furnishes pertinent data relative to member State institutions as of November 17, 1919: Member State institutions. Number Capital Surplus Undivided profits Individual deposits Bank deposits Total resources 38 $23, 225, 000 47,102, 000 8, 997, 877 241, 650, 071 7, 699, 936 460, 980, 948 DEPARTMENT OF EXAMINATION. Examinations have been made in Delaware, New Jersey, and Pennsylvania in cooperation with the State banking departments, which have resulted in more efficient results being obtained to the consequent benefit of all interested. The examinations of State institutions by their own banking departments are recognized and accepted in applications for membership, but it frequently happens that the applicant State bank or trust company has not recently been examined. The reports received from the State banking department would not, therefore, reflect the institution's true conditions at the date of application. For this reason an independent examination has often been made by examiners of the Federal Reserve Bank. Every effort has been made to keep in close touch with the condition of all member banks and reports of examinations are very carefully analyzed and valuable statistical records are compiled. FISCAL AGENCY OPEEATIONS. As fiscal agent for the United States the activities of the Federal Reserve Bank were again brought conspicuously to the public attention. The year saw the sale of the last popular loan, and with it a dissolution of the great army of loan workers through whose energetic efforts the five Liberty loans were so successfully distributed. With the war over and the necessity for great popular campaigns ended, the function of conducting the sales of Government securities is again in sole charge of officers of the reserve bank. At the beginning of the year the activities of the Liberty loan committee, the war savings organization, and the certificate of indebtedness division were consolidated Within the district into the war loan organization. This organization had at its head a director with associate directors. In this way the fiscal operations were coordinated and made more effective. At the close of the Victory loan this organization automatically dissolved, and sales of certificates of indebtedness were handled Digitized fordirectly FRASER by officers of this bank. 343 DISTRICT NO. 3—PHILADELPHIA. FINAL PAYMENTS ON FOURTH LIBERTY LOAN. Final payments on the fourth Liberty loan were completed in January. According to the schedule of payments arranged by the Secretary of the Treasury two installments, aggregating 50 per cent, were due in that month. So many investors paid for their bonds in full during 1918, however, that at the end of that year payments approximated 88 per cent of the $598,768,650 allotted to this district. The remaining 12 per cent was paid in January without disturbance to the money market. VICTORY LIBERTY LOAN. The Victory Libert}^ loan was a complete success, though it was floated at a time when the country was relaxing from the strain of war. Subscriptions in this district amounted to $422,756,100 on a quota given the district by the Secretary of the Treasury of $375,000,000. The allotment to the district was $376,290,100. The banking institutions cooperated with the Federal Reserve Bank in every way, not only to insure the success of the loan, but also to secure the widest possible distribution of the notes. At the outset of the campaign the financial institutions of Philadelphia as a unit agreed to lend Victory loan subscribers 95 per cent of the face value of their subscriptions for 90 days at 4 | per cent, being the coupon rate, with the privilege of renewing the loan for a similar period of 90 days at 4f- per cent interest. This offer of the banks was widely accepted. Details of the Victory Liberty loan follow: Delaware New Jersey.. Pennsylvania Philadelphia. Total... Total banking 237,973 666,775 3,793,211 1,800,000 $90,769,857 210,214,658 1,023,308,193 1,074,488,676 $12,889,200 29,850,400 145,309,800 186,209,450 $13,807,650 33,368,850 167,097,400 208,482,200 6,497,959 2,398,781,384 374,258,850 422,756,100 Allotment. Delaware New Jersey.. Pennsylvania Philadelphia. Total... ApportionSubscription. ment. Population. $12,784,450 30,479,200 158,435,100 174,591,350 Per cent of Per capita Number of population subscripsubscribers. subscribing. tion. 25,979 93,096 512,683 350,903 376,290,100 10.91 13.96 13.52 19.49 $58.00 50.00 44.00 116.00 15.12 65.00 SUMMARY OF LIBERTY LOANS. The results achieved in the Third Federal Reserve District in the five great war loans deserve recognition. The quotas assigned to this district on the five loans aggregated $1,515,000,000, aga,inst which total subscriptions were received of $1,996,142,750, or 132 per cent of the aggregate quota. Allotments to this district were $1,782,348,950. 344 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. The relation of subscriptions to quotas in each of the loans is^ given herewith. Subscription. Quota. First loan Second loan Third loan Fourth loan Victory loan .. Total ... Per cent of subscription to quota $140,000,000 250,000,000 250,000,000 500,000,000 375,000,000 $232,309,250 380,350,250 361,963,500 598, 763,650 422, 756,100 165.9 152.1 144.7 119.7 112.7 1,515,000,000 1,998,142,750 131.7 CERTIFICATES OF INDEBTEDNESS. Sales of Treasury certificates of indebtedness continued at intervals throughout the year. Every issue was oversubscribed where a quota was assigned. Sales of all issues during the year aggregated $681,511,500. The first issue of certificates in anticipation of the Victory loan was dated December 5, 1918, and series of certificates were issued at fortnightly intervals until near the end of the campaign. After the Victory loan, due to the stronger financial position of the Treasury, flotations were made at less frequent intervals. No loan certificates were issued between May 1 and August 1, and no certificates of any kind were issued between September 15 and December 1. An analysis of the subscriptions of the 10 issues of certificates in anticipation of the Victory loan follows: Number Per cent of subscrib- total in ing. district. National banks... Trust companies. State banks Savings banks 598 I 200 j 133 I 24 I Total banks. Individuals.. 955 38 Amount subscribed. 92.71 86.58 78.70 100.00 $272,140,000 115,377,500 20,016,000 12,155,000 9.34 419,688,500 646,000* Total sales of tax certificates with maturities extending into 1920 were $133,223,500. The amount of each maturity sold was as follows: March 15, $28,414,500; June 15, $50,222,500; September 15. $54,586,500. GOVERNMENT DEPOSITS. At the close of 1919 the total number of ban v s designated as United States depositaries was 666, as compared to 647 at the end of 1918. Of the .$1,080,000,000 in securities handled during the year in connection with the securing of Government deposits municipal bonds formed 10 per cent of the total, foreign Government bonds 10 per cent, railroad and utility bonds 20 per cent, commercial paper 30 per cent, and war-time obligations of the United States 30 per cent. The Government deposits averaged about $66,000,000 during the year, with an average amount of collateral held to secure the same of $118,000,000. Custodians of collateral numbered 115 at the end the year. Digitized forofFRASER DISTRICT NO. 3—PHILADELPHIA. £45 WAR SAVINGS DIVISION. Sales of stamps and Treasury savings certificates fell off markedly a^ter the armistice was signed and the stimulus of war was removed. There was a smaller percentage of redemption, however. In 1918, a year of intensified selling, the sum of $73,000,000 worth of stamps was sold in this district and approximately 10 per cent of this total was redeemed at post offices during the year. In 1919, when sales were only $8,000,000, it is estimated that less than 2 per cent of the total sales were redeemed. Stamps have been sold to 1,000,000 persons, and it is estimated that there are now 2,000,000 stamp owners in this district. The average cost during 1919 was approximately 1.5 cents per dollar raised. Following the Victory loan and the dissolution of the war loan organization the direction of the savings movement was taken over by the Federal Reserve Bank and the work is now conducted as a departmental operation of the bank. Sales of war savings and thrift stamps by this bank during 1919 totaled $988,561 and of Treasury savings certificates $438,100. 346 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT A.—Movement of principal earning assets of the Federal Reserve Bank of Philadelphia during the calendar year 1919. [In thousands of dollars.] Date. Jan. 3 10 17 24 31 Feb. 7 14 20 28 Mar. 7 14 21.... 28 Apr. 4 11 18 25 May 2 9 16 23 29 June 6 13 20 27 July 3 11 18 25 Au M:::::::::::::: 15 22 29 Sept. 5 12 19 26 Oct. 3 10 17 24 31 Nov. 7 14 21 28 Dec. 5 12 19 26 Discounted paper Other secured disby counted United. paper. States war obligations. 158,254 156,377 153,550 172,210 156,352 168,186 177,622 177,360 176,990 178,463 178,171 169,255 172,914 169,249 174,204 166,448 182,169 180,939 178,113 182,468 170.315 183,577 160.810 191,277 176,588 173,957 170,753 173,697 165,015 170,366 175,349 180,934 176,779 180,285 i 180 872 ! 175,974 179,199 173,229 180,151 175,243 182,038 181,508 182,789 181,590 186,560 182,962 188,259 185,583 184,407 193,337 177,655 178,648 Bills (1+2.) 177,319 19,065 171,990 15,613 15,518 169,068 187,883 15,673 15,036 j 171,388 13,175 ! 181,361 14,291 I 191,913 12,168 189,528 190,071 13,081 187,794 9,331 189,707 11,536 13,620 182.875 12,375 185,289 13,182 182,431 13,186 187,390 14,688 181,136 9,501 191,670 11,759 192,698 12,240 190,353 13,408 195.876 12,378 182,693 13,012 196,589 13,900 174,710 14,389 205,666 18,254 194,842 17,229 191,186 17,852 188,605 15,679 189,376 19,557 184,572 19,881 190,247 15,830 191,179 14,715 195,649 16,044 192,823 17,192 197,477 16,486 197,358 16,830 192,804 15,985 195,184 21,528 194,757 21,705 201,856 21,290 196,533 21,418 203,456 25,061 206,569 23,252 206,041 25,580 207,170 23,415 209;975 20,894 203,856 18,399 206,658 12,684 198,267 15,028 199,435 14,673 208,010 27,154 204,809 29,492 208,140 Total bills disPer cent bought in open counted (1-3). market. and bought. 89.2 90.9 90.8 91.6 91.2 92.7 92.6 93.6 93.1 95.0 93.9 92.5 93.3 92.7 93.0 91.9 95.0 93.9 93.6 93.2 93.2 93.4 92.0 93.0 90.6 91.5 91.0 91.7 89.4 89.5 92.3 92.5 91.6 91.3 91.7 91.3 91.8 88.9 89.2 89.2 89.5 87.9 88.7 87.6 88.8 89.7 91.5 93.6 92.5 92.9 86.7 85.8 3,401 3,072 2,770 2,571 2,133 2,153 2,274 2,116 1,987 1,658 1,332 2,291 2,270 3,192 1,021 914 826 691 930 922 918 1,113 972 969 864 860 711 631 759 719 660 623 673 812 762 843 1,061 811 735 645 645 618 601 656 887 1,297 1,444 3,135 3,649 4,705 4,704 4,698 180,720 175,062 171,838 190,454 173,521 183,514 194,187 191,644 192,058 189,452 191,039 185,166 187,559 185,623 188,411 182,050 192,496 193,389 191,283 196,798 183,611 197,702 175,682 206,635 195,706 192,046 189,316 190,007 185,331 190,966 191,839 196,272 193,496 398,289 198,120 193,647 196,245 195,568 202,591 197,178 204.101 207,187 206,642 207,826 210,862 205,153 208.102 201,402 203,084 212,715 209,513 212,838 United States securities. 11,418 11,243 11,243 12,211 12,185 12.165 12,665 12,665 13.166 13,666 15,165 16,665 16,715 17,741 17,666 18,665 18,661 19,645 20,075 20,075 21,075 21,075 27,065 22,070 23,066 23,248 24,236 25,231 25,178 26,198 26,198 27,248 27,190 27,2S7 28,625 28.566 28,616 30,054 29,567 30,067 30,178 30.567 30,573 30,687 30,600 32,431 31,746 32,856 33,145 32,303 32,519 31,914 Total earning assets. 192,138 186,305 183,081 202,665 185,706 195,679 206,852 204,309 205,224 203,118 206,204 201,831 204,274 203,364 206,077 200,715 211,157 213,034 211,358 216,873 204,686 218,777 202,747 228,705 218,772 215,294 213,552 215,238 210,509 217,164 218,037 223,520 220,686 225,576 226,745 222,213 224,861 225,622 232,158 227,245 234,279 237,754 237,215 238,513 241,462 237,584 239,848 234,258 236,229 245,018 242,032 244,752 347 DISTRICT NO. 3—PHILADELPHIA. EXHIBIT B.—Reserve position. [In thousands of dollars.] 2. Date. Cash Net deI reserves. posits. 4. 3. Net deposit and note lia- Reserve bilities ratio. (1+4). combined (2+3). Federal Reserve note circulation. I Jan. Feb. 127,889 146,513 141,128 127,138 135,252 | 135,695 132,670 128,979 129,751 134,872 __ 7 14 20. 27. Mar. 7 14..! 21 28 4 11 18 25 May 2 9 "...*...""..*.!.! ". Apr. '.'.". '.' ".".[""'l \..i . . . . ." - . . i • • I 130;665 128,476 125,893 ! 128,930 " " . " I 130,255 " ..*."! 126,331 126,595 "*".*" 126,521 - j 1 2 6 Q07 130,967 130967 16 23 29....:.;.;.;.;.;.;...;...:.;.;;;..;:;:::•;;;:::! June 6 I 13 "... 20 27 ].... July 3 . 11 Aug. 18.. 25.. 1.. 8.. 15.. 22.. 29.. Sept. 5.. 12.. 19.. 26.. Oct. 3 . . 10.. 17.. 24.. Nov. 7!'. 14.. 21.. 28.. Bee. 5 . . 12.. 19.. 178983—20 23 124,402 127,643 131,514 136,051 132,887 124,873 127,740 127,813 , 144, 755 131,461 125,192 126,357 131,620 127,987 128,463 130,006 128,542 126,861 130,007 128,731 132,118 133,958 131,122 135,026 136,342 132,150 134,055 131,487 134,734 137,637 138,880 72,661 91,171 89,604 99,205 91,818 102,530 105,315 99,441 103,283 106,296 107,540 101, 717 99,609 i 100,383 104,593 92,683 104,601 108,078 106,401 114,441 99,165 111,132 96,831 130,457 120,262 104,414 105,339 105,259 118,872 111,864 103,994 109,575 107,905 107,897 105,542 101,764 102,378 102,690 110,400 103,339 109,087 112, 779 111,283 115,902 116,139 107,846 112,384 97,128 101,747 107,674 107,906 99,840 231,372 224,109 216,301 211,250 209,920 208,865 214,301 213,258 210, 768 210,099 206.956 205,885 206,086 206,696 206,336 208,296 206,594 204,468 203.709 204,912 201,362 205, 734 207,352 203.710 200,619 203,703 203,310 204,046 201.957 201,693 203,665 204,697 208,136 208,527 212,752 212,863 213,103 211,378 212,579 213,801 216,987 219,271 216,396 216,293 219,870 220,593 219,689 223,051 222,612 229,076 233,241 240,273 304,033 315,280 305,905 310,455 301, 738 311,395 319,616 312,699 I 314,051 I 316,395 314,496 307,602 305,695 307,079 310,929 300,979 311,195 312,456 310,110 319,353 300,527 316,866 304,183 334,167 320,881 308,117 308,649 309,305 320,829 313,557 314,272 316,041 316,424 318,294 314,627 315,481 314,068 322,979 317,140 326,074 332,050 327,679 332,195 336,009 328,439 332,073 320,179 324,359 336,750 341,147 340,113 42.1 46.5 46.1 41.0 44.8 43.6 41.5 41.2 41.3 42.6 41.5 41.8 41.2 42.0 41.9 42.0 40.7 40.5 40.9 41.0 41.4 40.3 43.2 40.7. 41.4 40.5 41.4 41.3 45.1 41.9 40.7 40.2 41.6 40.4 40.4 41.3 40.7 40.4 40.3 40.6 40.5 40.3 40.0 40.6 40.6 40.2 40.4 40.2 40.5 40.0 40.3 40.8 848 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. *o Jso FEDERAL RESERVE BANK OFPHIL4DELFHIA MOVEMENT OF EARNING ASSETS DURING CALENDAR YEAR 1919. so so 0 UNITED STATES SECURITIES. ISO : At OUOJIT. 100 SO SO 60 40 20 O 60 40 20 0 IOO PERCEHTA6E OFWAR PAPER TO TOTAL DISCOUNTS. 2S0 200 SO TOTAL BILLS DISCOUNTED, -D; AHD WAR PAPERjW*, 300 O 300 250 TOTAL EARNIN6 ASSETS. m.\MCff\ArfiL\JWr\t/M£\JWty DISTRICT INTO. 3—PHILADELPHIA. 349 FEDERALRESERVE BANK OFPHILADELPHIA NET DEPOSIT LIABILITY, F.R.NOTE CIRCULATION, C4SHRESERVES. AMD RESERVE RATIO. 1813. 70 60 SO 40 30 20 10 70 60 SO 40 30 ZO 10 /"V RESERVE RATIO, (PERCENTAGE OF C+L). " x p5P0SITAIHD ER NOTE* LIABILITIES <L, AND TOTAL RESERVES/ C\ JAN KBL MCfiAPKL MAT JUNE JULY AUG. SEPT OCT NOV. PEC 350 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT C.—Comparative statement of condition. Dec. 31,1919. Dec. 31,1918. Dec. 31,1917. $88,948,165.00 8,448,460.00 31,678,751.93 194,040.00 10,505,616.91 589,111.05 $85,583,245.00 7,900,000.00 37,412,406.54 1,459,351.21 1,667,646.00 $63,945,755.00 1,500,000.00 32,101,000.00 19,064,667.50 3,675,000.00 1,189,996.10 141,364,144.89 134,022,648.75 121,476,418.60 87,908,591.66 121,946,370.40 5,177,538.86 32,071,900.00 135,032,810.41 43,787,151.29 3,011,280.08 11,417,900.00 4,008,400.00 31,903,836.94 18,390,067.91 9,649,950.00 10,000.00 247,104,400.92 193,249,141.78 63,962,254.85 9,677,915.00 260,249.00 1,167,100.00 1,475,000.00 43,175,744.75 92,970,730.85 1,191,987.61 11,739,400.00 332,037.00 1,019,340.00 475,000.00 4,348,590.00 * 90," 852* 687*76' 1,378,783.08 22,620,777.40 265,919.66 RESOURCES. Gold with Federal Reserve agent. Gold redemption fund Gold settlement fund Gold coin and certificates Gold with foreign agencies Other lawful money Total reserve. Collateral notes—members... Bills discounted—members.. Bills bought in open market. United States securities Municipal warrants •I- Total earning assets Federal Reserve notes on hand i Federal Reserve Bank notes on hand ! Mutilated Federal Reserve notes Redemption fund—Federal Reserve Bank notes.. Due from depositary banks—war-loan account Uncollected items All other resources Total resources. 209*09 538,387,273.02 433,069,038.29 212,674,169.60 7,884,150.00 8,805,132.41 7,562,450.00 1,304,171.92 6,142,150.00 5,188,851.06 110,541,160.68 79,115,484.23 5,039,128.17 99,720,124.95 66,740,374.64 220,238.27 5,387,488.53 103,000,930.13 435,026.60 194,845,495.97 247,895,665.00 29,052,000.00 49,051,497.75 853,331.89 538,387,273.02 171,499.627.76 241,870,745.00 9,258,200.00 108,823,445.26 97,325,755.00 LIABILITIES. Capital Surplus Undivided profits Government deposits Due to member banks, reserve account. Collection items, etc Totalgross deposits Federal Reserve notes outstanding Federal Reserve Banknotes outstanding.. Government deposits, special account All other liabilities Total liabilities 1,573,843.61 162,581.01 433,069,038.29 212,674,169.60 DISTRICT NO. 4—CLEVELAND. D. C. WILLS, Chairman and Federal Reserve Agent. DISCOUNT OPERATIONS. With the exception of the last two months of the year, we maintained a very good reserve position despite the fact that we were called upon for loans and rediscounts to a greater amount than ever before. The total volume of loans and redicounts far surpassed the volume for the year 1918. This is accounted for partly by the flotation of the Victory Liberty loan in the early part of the year. We are now lending on five issues of bonds as well as the certificates of indebtedness periodically issued. It was necessary for the banks to make loans to building and real estate interests whose operations had been strenuously curtailed during the war. Other demands from commerce and industry also arose in the course of transition from a war to a peace basis. The number of approved applications was 12,182 as against 5,714 the previous year. The number of banks accommodated was 409 as against 320 for 1918. The total of loans and rediscounts was $3,125,856,369.10 as against $1,386,000,000 in 1918. Of this amount $2,774,571,475 were member bank collateral notes secured by United States Government securities; and $98,868,639.20 were rediscounts of notes to member banks, secured by United States Government securities—a total of $2,873,440,114.20 in comparison with $252,416,254.90 loans on, and rediscounts of, commercial, industrial, and agricultural paper. Up to November 10, 1919, when a change in rates went into effect, it was more advantageous for banks to get their accommodation on paper secured by United States Government securities, and the increase in commercial paper rediscounts from November 10 to the close of the year was accordingly very marked. Approximately $14,100,000 of trade acceptances was reiiscounted for our member banks during the year and the amount, without doubt, would have far surpassed this figure but for the preferential rates that obtained on war loan paper during the first 10 months of the year. The trade acceptance is gaining great headway throughout the country and especially in this district. Every day brings new users to our attention. The organization in Cleveland of a local council of the American Acceptance Council has just been announced, and other councils are in process of development in other large centers, which should do much for the better development of the trade acceptance system. A comparison of various classes of rediscounts and loans made during the years 1918 and 1919 shows that rediscounts of commercial, industrial, and agricultural paper and trade acceptances fell off, while the volume of paper secured by United States Government securities increased tremendously, largely because of the preferential rates that were in effect on paper secured by United States Government obligations, during the first 10 months of 1919. 351 352 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Owing to our splendid reserve position in the first 10 months of 1919, other Federal Keserve Banks, whose reserve positions made it necessary, availed themselves of the rediscount facilities permitted between Federal Reserve Banks by rediscounting paper with us to a greater extent than ever before. The volume of bankers' acceptances purchased during 1919 shows a very large increase over the transactions of a similar character during the previous year, and fully demonstrates that the banker's acceptance is being used to a greater extent than ever before. It is interesting to note that during the year six additional banks have been granted authority to accept up to 100 per cent of their capital and surplus. Purchases of United States Government securities during the year 1919 aggregated $284,617,250, of which $262,341,000 consisted of 2 per cent certificates of indebtedness, representing loans to the United States Government for one and two day periods at times when the various issues of certificates were passing through the process of redemption and the special 2 per cent certificates securing Federal Reserve bank notes in lieu of silver certificates which were withdrawn from circulation. RESERVE POSITION. During the first 10 months of 1919 the reserve position of this bank was strong and constant, running between the 55 per cent and 65 per cent levels, and with a total showing of $229,017,300 in rediscounted paper for other Federal Reserve Banks. This stabilized position was due to the absence of seasonal demands by reason of diversified manufacturing and agricultural interests. This condition eliminates the peaks and dips to which some districts are subjected for crop moving purposes, such as cotton and wheat. While it is not generally known, the agricultural wealth of this district will compare well with that of other parts of the country. Commencing November 1 the reserve ratio started downward. It was quite natural that the year-end demands should greatly increase credit requirements, and it would be a pleasing premise to believe that this legitimate demand was the only cause for the downward course of the reserve. A careful analysis, however, would show that the cause was greatly aggravated by needless speculation and credit inflation. RESULTS OF OPERATION* Gross earnings of the Federal Reserve Bank of Cleveland during the year 1919 have amounted to $7,801,000, or slightly in excess of $150,000 a week, and approximately 49 per cent in excess of gross earnings for the previous year. The expense of operation, including expense of branches, this district's proportion of Federal Reserve Board expense, cost of Federal Reserve currency, and all items of equipment (which have been charged uniformly to current expenses) have been $1,351,000, or approximately 36 per cent greater than last year. The regular dividends were declared and paid during the year, and after setting aside a reserve sufficient to cover all depreciation of assets, the sum of $5,537,000 was transferred to surplus account, as provided in the act. The addition of this sum to surplus account makes a total of $9,089,000, or 47 per cent of our Digitized forsubscribed FRASER capital. 353 DISTRICT NO. 4—CLEVELAND. The following table shows the principal charges and credits to profit and loss account for 1919 as compared with 1918: Comparative statement, profit and loss account, 1919 and 1918. 1919 Balance profit and loss, Dec. 30,1917 Earnings: Discount on bills discounted Discount on bills purchased Income from United States securities.. Penalties on deficient reserves Transfers bought and sold, net Miscellaneous. Rents received, net Total.. $132,311.58 $5,341,785.14 1,882,984.84 450,308.07 66,441.90 45,606.92 4,569.03 9,133.18 3,130,600.29 1,135,680.37 779,133.53 66,462.03 51,213.53 63,773.86 10,829. C 5,359r175.19 Expenses: Cost of Federal Reserve currency (including taxes on bank-note circulation) 246,983.25 Furniture and equipment (main office and branches) 53,414.55 Depreciation of property purchased for bank premises (charged off) 254,683.73 Premium on United States bonds and securities (charged off) 5,044.06 Coupoq shipment lost (charged off) 4,199.85 Operating expenses— 728,899.24 Main office 141,735.87 Cincinnati branch 179,941.98 Pittsburgh branch 530.00 Difference account 556,785.69 Dividends paid Transferred to reserve for franchise t a x l 5,537,000. 00 Transferred to surplus account 45,055.98 Transferred to reserve for taxes Federal Reserve Bank notes 46,554.88 Transferred to reserve for Federal Reserve Board expenses 1920 Total.. 1918 7,800,829.08 188,661.12 85,784.13 98,882.79 525,652.24 89,257.91 102,829.78 716,107.22 1,776,000.00 1,776,000.00 5,359,175.19 1 This amount was transferred to surplus account Mar. 3, 1919, in accordance with an amendment to Federal Reserve Act approved Mar. 3,1919. MOVEMENT OF MEMBERSHIP. Eight national banks were organized during the year and 10 withdrew from the system. Of these latter three were merged with other national banks; two were merged with State institutions; two were consolidated, forming another national bank; one liquidated to form a State bank; one went into the hands of a receiver and another into voluntary liquidation. Of the new national banks organized, one was the result of the consolidation of two other banks as above mentioned. Thirty-three State banks and trust companies became members of the system during the year. There were two withdrawals of State bank members—one, a trust company, was merged with another State institution, and the other surrendered its membership. The final result in membership was a loss of two national banks and a gain of 31 State bank members, or a net gain of 29. The total number of members on December 31 was 843. A law passed at the last session of the West Virginia Legislature, by means of which eligible banks in that State may enjoy the benefits and privileges of membership, became operative last July, and as a result we have added to our member bank list three West Virginia banks having aggregate resources of $9,552,000. With the signing of the peace treaty the patriotic call to eligible State institutions to join the Federal Reserve System was seemingly at an end, but the great burden placed on the United States in the 354 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. readjustment and reconstruction of the world's finances has impressed these institutions with a further patriotic duty which many readily see can be best fulfilled through membership, as it is evident to them that if the Federal Keserve System is to be further strengthened it must be done through the accession of State bank members. The Federal Keserve Bank of Cleveland has always felt that the best means of creating interest in membership is through personal contact. This was carried on during the fore part of the year by our force of field agents. After the flotation of the Victory Liberty loan this force was very considerably reduced, and, in a great number of cases, this contact was developed by inviting a number of officers of eligible institutions to visit the Federal Reserve Bank of Cleveland, at which times the requirements and benefits of membership were discussed. There has also been carried on through the mails an organized campaign for the purpose of placing before eligible institutions the salient points in favor of membership. RELATIONS WITH NATIONAL BANK MEMBERS. On account of the carrying of Government securities for customers and the great need for extended credit by reason of high prices and increased business activity, rediscount transactions have greatly increased over all former records. Naturally, the large part of these transactions has been for the account of national banks whose number exceeds that of State bank members. Of the total volume of rediscounts about 69 per cent was for the use of national banks. The full effect of the additional powers granted in the amendment to section 11-k of the Federal Reserve Act approved September 26, 1918, was not immediately appreciated by the national banks, and as a result few applications were received during the latter part of last year. However, during this year an increased number have realized the opportunity for increased business. In the State of Ohio applications were further stimulated by the enactment of the new State banking law which gave to trust companies the right to exercise general fiduciary powers as in other States. As the Federal Reserve Act grants only such powers as are not in contravention of State or local law the enactment of the above law made it much more desirable for Ohio national banks to apply for fiduciary powers. In this district there were 51 national banks granted fiduciary powers, distributed by States as follows: Kentucky 3, Pennsylvania 16, Ohio 31, and West Virginia 1. As a result of war financing the national banks of the district were brought into much closer contact with the Federal Reserve Bank. The sales of certificates, the placing of the Liberty loan, and other matters incident to the war financing all tended to cement and strengthen this relationship. The Federal Reserve Bank of Cleveland has always felt that it owed to member banks the best possible service. Advantage has been taken of opportunities created in our dealings with members to show our desire to be of real assistance, and as a consequence a more cordial feeling has resulted. Recognizing the high value placed upon membership by our member banks, a series of advertisements concerning association with the Federal Reserve System was prepared for publication and disDigitized fortributed FRASER to member banks on request. In the preparation of these DISTRICT NO. 4—CLEVELAND. 355 advertisements, local conditions were kept in mind and each series made to fit individual needs so far as possible. Careful records were kept of all advertisements sent out, so that duplications were avoided in any given community. That this service is much appreciated by our members is demonstrated by the numerous requests received and by testimonials to its value from banks which have made use of it. A semimonthly bulletin issued by our library also aims to give service to our member banks by listing leading articles in current periodicals on banking and financial topics. The librarian is also ready to make any special investigations that may be asked for, and several banks have already availed themselves of this service since the bulletin was first issued in September of this year. RELATIONS WITH STATE BANKS AND TRUST COMPANIES. As in the case of national banks, the Government financing, high prices, and increased business activity made necessary additional rediscounting and, as a result, the discount operations of State banks and trust companies amounted to $957,000,000, or approximately 31 per cent of the total. While a large percentage of Government securities was used for these loans, yet it is believed, in these latter months of the year, that a large part of the rediscounts was for business requirements, and commercial paper would have been used in their stead if these securities were not more readily available. Ninety-seven State banks are now members of the Federal Reserve System in this district. These institutions represent resources of $784,636,000. As a result of their membership, many of them have extended the scope of their business and are actively engaged in commercial banking. It is worthy of note that, as a class, State bank members make more use of the service which the Federal Reserve Bank offers than do national bank members. This is accounted for by the close study of the system which the officers make before joining, with a consequent greater knowledge of the facilities it affords. An encouraging feature is the appreciation evinced by those who have been members long enough to have made a trial of the merits of the system, and their expressed view that membership has been of value to them in many ways that were not anticipated on joining. It is also noted that the more progressive nonmember eligible banks are much more favorably disposed towTard the system and generally express themselves to the effect that, eventually, they intend to join, applications being withheld until a convenient season. During the year arrangements have been completed with the banking departments of all States covered by this district to cooperate in the examination of State bank members. In anticipation of this a staff of examiners was secured, with Mr. William H. Fletcher as manager of the department of examination. The advantage in joining in these examinations was primarily to instruct the member banks in a fuller use of the services offered by the system. It was not the intention to conflict in any way with or to interfere with the State departments ' examinations which, in this district, are of a high grade and very satisfactory. Undoubtedly this contact through the examiner will be of mutual benefit to the bank examined and the Federal Digitized forReserve FRASER Bank of Cleveland and also be of assistance to the State 356 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. department. The department now consists of the manager of examinations and three assistants. These will be added to as the work develops. FISCAL AGENCY OPERATIONS. The successful flotation of the Victory Liberty loan and the sale of Treasury certificates were the outstanding features of the year's work. It is of interest to note, in connection with certificate sales, that for all certificates for which this bank was assigned a quota, the subscriptions were 110 per cent of the total of quotas. Member national banks alone subscribed for an average of about 55 per cent of all certificate issues and Victory notes. Subscriptions to the Victory loan were received from over 99 per cent of all incorporated banks in the district, while over 70 per cent of such banks subscribed to the various issues of Treasury loan certificates. The report of operations of the depositaries department shows interest collected in the sum of $1,276,000, or approximately 88 per cent of all fiscal agency expense. The largest aggregate deposit in depositary banks during the year was $180,000,000 on June 9, and the smallest was $18,301,000 on December 1. A decided reduction has been made in the force of the fiscal agency department as the result of the completion of a successful flotation of all Liberty and Victory bond issues. FEDERAL RESERVE NOTES. There was little demand for Federal Reserve notes during the period following the signing of the armistice until the industrial skies cleared in the spring of 1919 and the resumption of commercial activity necessitated additional issues of currency. From December, 1918, to June, 1919, there were issued here no new notes of the $20 denomination. As business conditions returned more nearly to normal, the demand for notes has increased, although the amount outstanding is but $17,000,000 in excess of note liability one year ago. FEDERAL RESERVE BANK NOTES. The circulation of Federal Reserve bank notes has been continued and more than doubled in volume during the current year. This increase is represented entirely by bills of $1 and $2 denominations, a reduction of over 50 per cent having taken place during the year in the volume of $5 notes in actual circulation. This is accounted for by the continued and insistent demand in this district for small bills, which could not be fully supplied by governmental issues. POSITION OF COMMERCIAL BANKS AS A RESULT OF WAR FINANCING. A comparison of resources and liabilities of member banks on November 17, 1919, and December 31, 1918, follows: 357 DISTRICT NO. 4—CLEVELAND. Comparative statement of aggregate resources and liabilities of member banks, Nov. 17, 1919, and Dec. 31, 1918. [000 omitted.] Nov. 17, 1919. Dec. 31, 1918. RESOURCES. Loans and discounts Overdrafts Acceptances and letters of credit United States securities Liberty loan bonds All other bonds, securities, etc Banking house, furniture, and fixtures. Other real estate Reserve with Federal Reserve Bank... Cash and due from banks 5 per cent redemption fund Other assets Total resources. 453,041 60, 737 10,883 129,506 318, 749 5,421 20,296 $1,162,712 790 22,466 195,450 168,393 404,628 57,385 10,631 126,320 358,125 7,455 19,272 2, 753,878 2,533, 627 158,303 158,013 58,993 90,028 237,942 ., 180,444 653,496 27,265 20,325 116,827 27,132 25,110 155,250 150,440 43,869 89,687 266,312 1,083,077 2,753,878 2,533,627 ,370,216 1,291 26,817 356,921 LIABILITIES. Capital Surplus Undivided profits Circulation Due to banks and bankers Demand deposits Time deposits United States deposits Bonds borrowed Bills payable Acceptances and letters of credit. Other liabilities Total liabilities. 551,708 31,950 21,237 81,852 22,740 35,505 Liberty loan bonds included in United States securities. While the increase in total resources, as shown in the table, is due in part to the admission of new banks to membership, a comparison of figures for a like number of banks on the date mentioned shows that the member banks generally have enjoyed unusual prosperity during the past year as a result of operations incident to war financing and the subsequent transition to a peace basis. The increase in member banks' obligations is the result of heavy demands for funds in the resumption of various industries curtailed during the war. POLICY TO BE PURSUED IN RESTORING LIQUIDITY OF BANKS. To enable the member banks to carry loans made to subscribers to the fourth Liberty loan and to subscribers to the Victory loan, the liberal loaning policy which prevailed through 1918 was continued without an increase in rates for Government-secured paper until November 10, 1919. It was the judgment of our board that as the Government's requirements had been substantially provided for the time had arrived when the differential rate between Government-secured paper and commercial loans should be removed. Higher rates at the Federal Reserve Bank would naturally mean naming of higher rates to the customers by member banks, which should bring about a gradual liquidation of loans secured by Government paper, and thereby gradually correct the inflated credit situation brought about by the exigencies of the war. It is appreciated that the industrial activity, which has prevailed and is prevailing throughout the fourth Federal Reserve district, 358 ANNUAL REPORT OF THE FEDERAL. RESERVE BOARD. coupled with high costs of materials and commodities, makes for heavy demands for credit upon our member banks. It will be the policy of this bank to assist the demand of legitimate business in every way consistent with conservative banking methods. It is, however, incumbent upon the member banks to use discrimination in extending credit. While legitimate industry should be helped and encouraged, loans for speculative purposes should be discouraged to the point of being refused. OPERATIONS OF FEDERAL RESERVE BANK BRANCHES IN CINCINNATI AND PITTSBURGH. Facilities afforded through the operations of our branches in Cincinnati and Pittsburgh have been taken advantage of to a very large extent by member banks located within their respective branch territories, and have been the means of improving markedly the feeling of member banks in those sections toward the Federal Reserve System. The check-collection system has been used to an increasing extent, especially in the Pittsburgh territor}7, where the number of items handled has shown a very marked increase over 1918. Cincinnati has also shown a very large increase in the number of items handled during 1919. Money transactions have been very heavy at our branches, and the banks have repeatedly expressed their gratification over the facilities afforded by the branch banks. The books covering the accounts of the banks in the branch territories are, of course, carried at the main office, all entries being made by means of daily transcripts and private telegraph connections. Discount operations in the oranch cities have been very large during the past year. While the books covering fiscal agency operations are located at the main office, our branches are permitted to handle all fiscal agency operations with the exception of transactions by mail. There would not be any particular advantage to our member banks in permitting our branches to handle mail fiscal agency matters, as our district is so compact that mail addressed to the main office would reach it in as quick a time as mail addressed to either of the branch cities. OPERATIONS OF MONEY DEPARTMENT. During the year there has been delivered or shipped to members in this district currency amounting to $358,737,280.41 and to nonmember banks $3,386,069.48, or total shipments amounting to $362,123,349.89. The receipts of currency from member banks during 1919 totaled $377,635,253.70 and from nonmember banks $5,660,757.79, total receipts from the above sources amounting to $383,296,011.49. The above figures represent only a part of the tellers' activities, while disbursements of all kinds for the three offices for the year 1919 amounted to $628,531,886.97, and receipts of all kinds amounted to $605,560,435.57. CLEARING AND COLLECTION OPERATIONS. Par list—On January 1, 1919, there were 422 banks out of a total of 1,928 in the district whose checks we were unable to collect at During the year substantial progress was made in adding Digitized forpar. FRASER DISTRICT NO. 4—CLEVELAND. 359 banks to the par list until on December 1 there remained only 7 banks, all located in our part of Kentucky, whose names did not appear on the par list. With the close of the year arrangements were made for the collection of checks on these banks so that we are now able to collect checks drawn on every bank in the Fourth Federal Reserve District at par. In a very few cases it has been necessary to collect for a time through the American Railway Express Co. or through private agents established in towns where banks could not be persuaded to remit at par voluntarily. Usually a very short experience with this method of collection has resulted in a voluntary agreement to remit without exchange. The addition of 422 banks to the par list during the year was very gratifying. Our member banks are now able to collect checks on all banks in the first, second, third, and fourth Federal Reserve districts. Out of a total of almost 30,000 banks in the United States less than 4,000 do not appear in the par list issued by the Federal Reserve Board and this number is rapidly decreasing. Check collections and clearings.—With a steady increase in the par list the check-collection system has become more useful to member banks, and there has been a steady increase in the average number of items handled daily. This average has increased from 75,202 in January, 1919, to 123,983 in December. The total average value of the items handled daily has increased from approximately $39,000,000 in January to approximately $49,000,000 in December. Collections—city and foreign.—Departments for the handling of purely collection items which had been operating in a rather modest way increased rapidly during the year, owing to improvement in the facilities for handling collections payable throughout the United States. Because of direct communication with all other Federal Reserve Banks and branches, we are able to offer our member banks quicker service than they have been accustomed to receiving, at less expense. That our member banks appreciate this service is indicated by the steadily growing volume of collection items handled by our three offices during the year. PERSONNEL. Because of the rapid expansion of the bank's operations during 1919 there were many additions to our official staff. These appointments necessitated a reorganization in our banking and fiscal agency departments. In January Mr. M. J. Fleming and Mr. F. J. Zurlinden, formerly assistant cashiers, were appointed assistants to the governor, and Mr. H. G. Davis, formerly an assistant cashier, was appointed cashier to fill the vacancy caused by the resignation of Mr. Edwin C. Baxter, and Mr. C. W. Arnold was appointed an assistant cashier. In August Mr. P. A. Brown was appointed assistant cashier of our Pittsburgh branch. During December Mr. C. H. Wagner, formerly auditor, and Messrs. G. A. Stephenson and D. B. Couser were appointed assistant cashiers. Mr. F. V. Grayson, formerly assistant auditor, was appointed auditor. The retiring members of the board of directors for the year were Mr. Lyman H. Treadway, class C director; Mr. W. B. Wright, class B director; and Mr. W. S. Rowe, class A director. It is with sincere regret that we announce the untimely death of our esteemed vice chairman, Mr. Lyman H. Treadway, which 360 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. occurred in December. Mr. L. B. Williams, of the firm of Hayden, Miller & Co., investment bankers, of Cleveland, Ohio, has been appointed his successor by the Federal Reserve Board. Mr. R. P. Wright was reelected as a class B director. Mr. Chess Lamberton, of the Lamberton National Bank of Franklin, Pa., is our newly elected class A director to succeed Mr. Rowe. Mr. Rowe was ineligible for reelection, because of the provision in the Federal Reserve Act that a director can only be elected by the banks which are members of the same group as the member bank of which he is an officer or director. The regrouping of Mr. Rowe's institution has placed that bank in a different group from the one which voted. NEW BUILDING. Following an exhaustive study of available building sites, the board of directors, acting on the recommendation of the committee appointed at the December, 1918, meeting, authorized the purchase of the Masonic Temple property, at the northeast corner of Superior Avenue and East Sixth Street. The area of the site purchased is approximately 30,000 square feet, and the purchase price was $865,000. On November 12, 1919, a contract was entered into with local architects to assume charge of the erection of a new building on the site above mentioned. While no definite conclusion has been reached as to detailed plans, it is expected that a program will be prepared early in the coming year. It is probable that the new building will be six or eight stories, which should provide the room to meet our additional space requirements due to expansion of our present work, and the possibility of taking on additional functions within the next 10 or 15 years. The type of building will be thoroughly in keeping with the dignity of the institution. We are at present occupying 31,250 square feet of space scattered through the Williamson and the Thompson Buildings. The available room is inadequate to meet even our present requirements, and the erection of a building designed for our special needs must result in greater convenience and, as a result, increased efficiency. MISCELLANEOUS. The increased activities during the past year have compelled us to establish an accounting and planning department for the purpose of centralizing all the accounting work and the preparing of all necessary forms into one department. It has also been found necessary to organize a new statistical department, together with an editorial department. The continued increase in operations has made necessary the enlargement of the departments of loans and discounts, money, foreign collections, analysis, and bookkeeping, and the installation of a battery of five-additional chests in our main vault. Operations at our Pittsburgh and Cincinnati branches have had a proportional increase, and expansion and remodeling have been necessary. An especially built armored truck has been purchased to facilitate transportation of and give better protection to our money and security shipments to and from the post office and express offices. DISTRICT NO. 4—CLEVELAND. 361 There is no large financial library in this district, such as those belonging to some of the larger New York banks. Realizing the need of a good reference library for the use of our own bank staff as well as of our member banks, a librarian was engaged in October, 1918, to make a beginning in this direction. The library now contains about 400 volumes of works on banking and finance and other books for general reference, in addition to a large file of pamphlets, circulars, and clippings. Ten daily newspapers are received and clipped. About 70 periodicals are subscribed for or received by gift. The periodicals are indexed for all subjects which may have value for reference later. It has not been possible as yet to lend the books and periodicals from the library to other banks except in special cases, but many reference questions have been answered and lists of books and references to periodicals have been compiled. As the library increases in size and scope there is no doubt it will prove of much value to the banks of this district. GENERAL BUSINESS AND BANKING CONDITIONS. The uncertainty regarding the immediate future of business following the signing of the armistice gave way early in 1919 to a feeling of confidence, and the resumption of activity in practically all industries was limited only by the ability to secure the necessary labor and material. The district, as a whole, has enjoyed a fairly satisfactory degree of production, although a disposition to restrict the output of the more essential articles, in favor of those which may properly be classed as luxuries, is evident. In many lines in which production was curtailed, or entirely suspended during the war period, energetic action on the part of manufacturers has succeeded in bringing about a partial, if not quite complete, return to the prewar status. The two outstanding features in the industrial life of the district were the strikes of the steel workers and the coal miners. Both of these disturbances struck at basic industries in this section. Certain lines have been affected by the shortage of some forms of steel, but a practical return to normal conditions is found in the steel trade to-day. The strike of the mine workers caused some inconvenience; in a number of communities coal allotment restrictions were again brought into force and some manufacturers were forced to limit or suspend operations. Fortunately a settlement was reached in time to prevent what might have been a serious blow to business. Local strikes are handicapping the efforts of some producers, but the effect on general business is negligible. Wages continue high, and there is employment for all who wish to work. Farmers are enjoying unusual prosperity, the result of highly satisfactory crops and a large money return. This is particularly true of the Kentucky tobacco section, and expressions of appreciation are heard of the ease with which the funds required to move the crop were secured from the Federal Keserve Banks. The demand for funds throughout the year has been unusually strong, especially during the last two months. Banks throughout the district enjoy unparalleled prosperity, and are amply able to meet the legitimate requirements of business. 362 ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD. EXHIBIT A.—Movement of principal earning assets of the Federal Reserve Bank of Clevefa^ land during the calendar year 1919. [In thousands of dollars.] ! Date. Jan. 3 Feb. Mar. Apr. May June Juiy Aug. Sept. Oct. Nov. Dec. 10 17 24 31, 7. 14. 20. 28. 7. 14. 21. 28. 4. 11. 18. 25. 2. 9. 16. 23. 29. 6. 13. 20. 27. z. 18. 25. 1. 8. 15. 22. 29. 5. 12. 19. 26. 3. 10. 17. 24. 31. 7. 14. 21. 28. 5. 12. 19. 26. | Discounted paper secured Other discounted by United paper. States war obligations. 115,099 113,381 96,398 91,049 87,593 84,325 97,060 95,522 101,209 96,969 110,674 114,661 114,559 120,577 131,219 126,582 122,102 135,096 126,460 115,743 134,152 131,404 118,393 128,601 121,593 119,768 105,432 104,473 100,469 103,063 101,826 100,989 110,082 100,181 116,329 114,897 110,435 104,907 111,635 119,263 120,582 122,463 116,920 113,502 111,733 122,339 125,938 130,272 116,672 118,469 112,254 120,536 12,074 i 9,177 I 9,355 i 8,754 I 8,086 i 7,282 ! 6,745 ! 7,316 ! 6,320 i 4.934 ' 4,503 ! 3,654 2,332 3,022 | 7,269 i 8,469 | 5.935 i 5,229 ! 5,223 ! 4,923 | 5,206 > 6,785 i 6,114 6,045 , 6,623 ! 7,201 i 8,554 8,443 9,661 11,463 10,517 ! 10,710 10,810 11,110 9,656 9,601 9,549 11,888 18,475 21,464 21,526 24,960 23,793 23,438 27,473 26,744 30,194 32,966 35,463 41,245 43,951 47,041 1+2 Total Bills bills dis- United Total ! Percent bought counted States earning in open and securities assets. market. bought. 127,173 122,558 105,753 99,803 95,679 91,607 103,805 102,838 107,529 101,903 115,177 118,315 116,891 123,599 138,488 135,051 128,037 140,325 131,683 120,666 139,358 138,189 124,507 134,646 128,216 126,969 113,986 112,916 110,130 114,526 112,343 111,699 120,892 111,291 125,985 124,498 119,984 116,795 130,110 140,727 142,108 147,423 140,713 136,940 139,206 149,083 156,132 163,238 152,135 I 159,714 156,205 167,577 90.5 92.5 91.2 91.2 91.5 92.0 93.4 92.8 94.1 95.2 96.1 96.8 98.0 97.6 94.7 93.7 95.3 96.3 96.0 95.9 96.3 95.1 95.0 95.5 94.8 94.3 92.5 92.5 91.2 89.9 90.6 90.4 91.1 90.0 92.3 92.3 92.0 89.8 85.8 84.7 84.8 83.0 83.0 82.9 80.3 82.1 80.6 79.8 76.7 74.2 71.8 71.9 36,478 32,100 40,362 44,749 48,510 63,235 61,750 61,359 60,797 57,648 51,183 47,231 37,452 32,694 29,719 24,017 21,254 22,652 20,881 20,464 | 21,562 21,364 I 20,132 26,914 I 31,969 36,972 40,316 44,025 55,649 i 56,139 [ 56,916 57,047 54,573 46,660 42,133 37,853 39,242 41,768 40,510 35,588 34,814 36,240 39,779 50,757 68,402 ! 67,811 67,971 64,694 57,900 58,118 56,867 56,923 163,651 154,658 146,115 144,552 144,189 154,842 165,555 164,197 168,326 159,551 166,360 165,546 154,343 156,293 168,207 159,068 149,291 162,977 152,564 141,130 160,920 159,553 144,639 161,560 160,185 163,941 154,302 156,941 165,779 170,665 169,259 168,746 175,465 157,951 168,118 162,351 159,226 158,563 170,620 176,315 176,922 183,663 180,492 187,697 207,608 216,894 224,103 227,932 210,035 217,832 213,072 224,500 12,810 16,203 14,222 18,186 13,143 12,270 12,150 12,424 12,425 13,425 13,925 14,540 15,159 15,131 15,499 17,114 16,581 17,131 17,131 17,087 17,525 17,550 18,059 18,110 18,595 18,580 18,629 20,396 19,658 19,441 19,968 21,568 21,053 23,017 21,610 22,495 22,495 24,668 25,872 25,798 25,698 25,808 25,827 25,727 24,969 25,828 26,862 26,727 25,990 25,980 25,975 25,660 176,461 170,861 160,337 162,738 157,332 167,112 177,705 176,621 180,751 172,976 180,285 180,086 169,502 171,424 183,706 176,182 165,872 180,108 169,695 158,217 178,445 177,103 162,698 179,670 178,780 182,521 172,931 177,337 185,437 190,106 189,227 190,314 196,518 180,968 189,728 184,846 181,721 183,231 196,492 202,113 202,620 209,471 206,319 213,424 232,577 242,722 250,965 254,659 236,025 243,812 239,047 250,160 363 DISTRICT NO. 4—CLEVELAND. EXHIBIT B.—Movement of gold and cash reserves, Federal Reserve note and net deposit liabilities, and the reserve percentage of the Federal Reserve Bank of Cleveland during the calendar year 1919. [In thousands of dollars.] Gold reserves. Bate. Jan. 0 War Apr. May June July Aug. ftept Oct. Nov Dec. 3 10 17 24 31 7 14 20 28 7 14 21 28 4 11 18 25 2 9 16 23 29 6 13 20 27 3 11 18 25 1 8 15 22 29 5 12 19 26 3 10 17 24 31 7 14 21 28 5 12 19 26 199,626 216,445 221,407 225,986 222,857 200,756 213,276 210,315 224,920 218, 791 208,602 222,308 226,911 212,843 218,281 204,863 214,971 212,801 210,216 228,947 208,321 204,821 213,014 215,832 197,361 183,462 202,564 216,305 197,947 201,873 186,879 189,150 192,026 201,491 208, 558 209,787 216, 704 220,264 214,671 211,942 210,480 210,320 202,224 205,923 185,120 178,356 171,100 163,953 181,572 178,324 169,118 181,253 .. .. . . . ... ... .. . . . ... .. . . . . 178983—20 24 Cash reserves. 200,855 217,690 222,875 227,658 224,466 202,819 214,627 211,323 226,002 220,054 219,685 223,409 228,000 213,959 219,349 206,044 216,273 213,992 211,331 230,134 209,391 205,826 214,118 216,771 198,229 184,400 203,363 217,179 198,857 202,771 187,906 190,155 192,991 202,349 209,440 210,543 217, 556 221,142 215, 583 212,835 211,395 211,223 203,130 206,864 185,991 179,181 171,978 164,790 182,485 179,030 169,786 181,786 Federal Reserve notes in actual circulation. 248,670 249.933 239,606 235,564 231,153 232,992 233,874 228,815 233,069 230,950 229,761 229,590 232,642 229,221 233,042 227,698 230,595 228,202 227,838 225,171 224,788 223, 599 218,094 217.934 213,454 214,663 217,567 220,142 215,948 218,794 215,039 220,064 222,903 225,448 231,136 231,449 237,017 233,862 242,280 241,221 245,900 243,718 246,295 243,740 246,549 248,080 245,484 251,011 250,384 255,337 260,188 272,884 Net deposits. 107,343 117,076 121,756 132,742 128,746 115,066 136,428 136,245 150,467 138,410 135,963 149,040 139,307 130,296 144,522 127,644 124,327 138,325 125,435 135,238 135,000 131,300 130, 530 150,693 134,872 123,163 129,461 144,485 138,189 143,402 131,031 128,989 134,577 125,210 134,978 130,292 128,134 136,101 134,374 137,628 131,296 139,857 126,384 139,675 134, 558 136,384 139,921 130,744 130,282 128,736 109,795 119,706 (3 + 4.) 356,013 367,009 361,362 368,306 359,899 348,058 370,302 365,060 383,536 369,360 365,724 378,630 371,949 359,517 377,564 355,342 354,922 366,527 353,273 360,409 359,788 354,899 348,624 368,627 348,326 337,826 347,028 364,627 354,137 362,196 346,070 349,053 357,480 350, 658 366,114 361,741 365,151 369,963 376,654 378,849 377,196 383, 575 372,679 383,415 381,107 384,464 385,405 381, 755 380,666 384,073 369,983 392, 590 Ratio of cash reserves to net deposit and Federal Reserve note liabilities combined. 56.4 59.3 61.7 61.8 62.4 58.3 58.0 57.9 58.9 59.6 57.3 59.0 61.3 59.5 58.1 58.0 60.9 58.4 59.8 63.9 58.2 58.0 61.4 58.8 56.9 54.6 58.6 59.6 56.2 56.0 54.3 54.5 54.0 57.7 57.2 58.2 59.6 59.8 57.2 56.2 56.0 55.1 54.5 54.0 48.8 46.6 44.6 43.2 47.9 46.6 45.9 46.3 364 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. FEDERALRESERVE BAM OFCLEVELAND MOVEMENT OF EARNING ASSETS DURING CALENDAR YEAR 1919. i s5 UMTEDSTATES SECURITIES. too ACCEPTANCES BOUGHT 1 "• - so 60 40 20 ' O PERCENTA6E0FfVAR PAPER TO TOTAL DISCOUNTS, 200 200 ISO TOTAL BILLS DISCOUNTED, "D;ANDIVARPAPER7m 300 250 TOTAL EARN!PIG ASSETS. i$Ul^ 365 DISTRICT NO. 4—GLEVEIAND. 13 fEDERALRESERVEBAHKOFCLEVELAND NET DEPOSIT LIABILITY. § fiR.NOTE CIRCULATION, CASH RESERVES.AND RESERVE RATIOJ9I9. I TO 60 PO 60 SO SO 40 10 & 30 20 10 0 20 10 0 RESERVE RATIO. (PERCENTA6E OFC+Ll 200 r.R. NOTE CIRCULATION. 460 4S0 400 400 350 350 300 100 50 /f/YP^ JAN. FEB. MCH. APRL MAT JUKE JULT AUG. SEPT. OCT. NOV. DEC. 366 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT C.—Statement of condition of the Federal Reserve Bank of Cleveland. Dec. 31,1919. Dec. 31,1918. Gold redemption fund, Federal Reserve notes. Gold with Federal Reserve agent Gold settlement fund Gold coin and certificates Gold with foreign agencies Gold in transit for redemption $1,872,462. 24 128,704,225.00 43,848,018. 81 4,870,097.50 10,768,257.35 475,500. 00 $1,368,280.00 138,277,370.00 52,125,485.35 12,865,862.50 524,598. 71 391,322.50 Total gold reserve Legal tender notes and silver certificates and coin. Legals and silver in transit for redemption 190,628,560.90 '635,770.45 77,100.00 205,552, 919.06 850, 959. 55 276, 004.00 RESOURCES. Total cash reserve. 191,341,431.35 206,679,882.61 Federal Reserve notes on hand Federal Reserve Bank notes on hand Nickels and cents Our mutilated Federal Reserve notes forwarded for redemption Due from Treasurer United States 5 per cent fund (Federal Reserve Bank notes) O verdraf ts 17,355,115.00 460,010.00 1,376.15 1,732,565.00 14,147. 660.00 869; 385.00 695.38 589. 720.00 1,122,000.00 39,976.71 531, 800.00 1, 725. 73 Total. National bank notes and notes of other Federal Reserve Banks Unassorted currency Uncollected transit items 20,711,042.86 16,140,986.11 3,456,640.00 3,185,787.00 77,055,466.83 "58," 554^ 835.'47 83,697,893.83 62,829,954.47 63,043,012.89 101,474,120. 00 28,412, 284.55 77,339, 400.00 21,583, 497. 09 37,445, 215. 53 Total deductions from gross deposits. Bills discounted Member banks' collateral notes Rediscounts for other Federal Reserve Banks Acceptances purchased United States bonds and securities: 2 per cent Treasury special certificates of indebtedness to secure circulation 3 per cent 1-year Treasury notes 3 per cent conversion bonds 3-J per cent Liberty loan bonds 4i per cent Liberty loan bonds 3f per cent Victory loan bonds 4| per cent Victory loan bonds U per cent certificates of indebtedness Total earning assets Interest accrued on United States securities War loan expenses advanced Liberty loan bonds sold on installment plan to employees. Other deferred charges Difference account Real estate owned Total resources. 48,606,679. 40 23,299,000.00 414,800.00 16,200. 00 402,400.00 10,100.00 150.00 284,000.00 237,550,462. 29 226, 732. 80 330,385.98 2,362.28 193.76 640,000.00 4,275, 119.00 9,458,000.00 ] , 202,000.00 414,800.00 266,200.00 403,550. 00 1,065,500.00 177,590,447.17 58,514.53 766,785.38 24,300.00 17,646.11 534,500,505.15 464,108,516.38 283,801,770.00 22,491,000.00 266,519,915.00 10,600,000.00 306,292,770.00 277,119,915.00 1,675,111.23 129,415,061.66 749,987.69 123,423.976.31 13; 128.00 196,072.59 LIABILITIES. Federal Reserve notes outstanding Federal Reserve Bank notes outstanding. Total currency outstanding. United States Government deposits Member banks' reserve accounts Contracts to deliver Liberty bonds sold employees. Official checks and drafts outstanding * Foreign G overnment credits Collected funds on deposit Deferred availability items Gross deposits Reserved for taxes on Federal Reserve Bank notes.. Reserved for depreciation on United States bonds... Reserved for Federal Reserve Board expenses, 1920. Reserved for franchise tax 1 Capital paid in Surplus fund Unearned discount and interest Other liabilities (difference account) Total liabilities. 1 200,015.64 5,928,112.60 137,218,301.13 71,603,531.00 208,821,832.13 45,055.98 89,450. 85 46,554.88 124,383,164.59 49,581,406.40 173,964,570.99 84,406.79 9,532,950.00 9,089,000.00 582,891.31 1 1,776,000.00 9,072,700.00 1,776,000.00 314,121. 08 802.52 534,500,505.15 464,108,516.38 This amount was transferred to surplus account Mar. 3, 1919, as provided by an amendment to the Digitized forFederal FRASER Reserve Act approved that day. DISTRICT NO. 5.—RICHMOND. CALDWELL HARDY, Chairman and Federal Reserve Agent. INTRODUCTION. The past year has been one of high prices, marked business activity and prosperity, the transactions of the Federal Reserve Bank reflecting these conditions and reaching unprecedented proportions. This increase is the natural sequence of high prices and the corresponding growth of business among its member banks. It evidences also the value of the service rendered to the member banks. Such irregularities and uncertainties as have existed have had no apparent effect in lowering prices or even checking advances in many cases. The progress of readjustment to normal prices and conditions has been disappointing. The decline in Government financing has not led to the liquidation of bank loans which should have been incident thereto. The year closes with banking and commercial credits expanded to such unprecedented proportions as to call forth repeated warnings from the Federal Reserve Board and banks. These have been followed by the raising of discount rates, with the view to checking further expansion, encouraging liquidation, and strengthening reserves. GENERAL REVIEW OF THE SERVICES AND ACTIVITIES DURING 1919. The discounting of paper is the most important service rendered to member banks, and the discount operations of the Federal Reserve Bank of Richmond during 1919 have therefore constituted the most important part of its activities and show a very large increase over the preceding year. At the beginning of the year 1919 there were 565 member banks. During the year there was an addition to membership of 19, making 584 members at the close. During the year, 415, or 72 per cent of the average number of member banks, were accommodated through the discount or purchase of paper, which aggregated in amount $4,184,000,000. In addition to this, $5,000,000 of paper was purchased from other Federal Reserve Banks, making the total volume of discount operations $4,189,000,000, as compared with $2,231,000,000 for the year 1918, an increase of 88 per cent. Of the total volume of paper discounted and bought during the current year, $3,983,000,000, or 95 per cent, was secured by Government war obligations. This high percentage is due to the fact that bills secured by Government war obligations are discounted for not exceeding 15 days and renewals are therefore more frequent. In evidence of this, the balance ol bills secured by Government war obligations held at the close of business December 31, 1919, were 67 per cent of our total bill holdings. It indicates that Government 367 368 ANNUAL REPOKT OF THE FEDERAL RESERVE BOARD. bonds have not been fully absorbed by the subscribers, loans on them being largely responsible for the continued expansion of credits, so much in evidence. The daily average amount of bills discounted and bought during 1919 was $13,871,000, compared with $7,339,000 for the year 1918. The clearing facilities offered its members by the bank are doubtless next in importance to the discounting privilege in point of service to them. Total clearings during 1919 almost doubled those of the year 1918. The transit department during 1919 handLed 20,934,355 items, amounting to a total of $9,304,179,945, as compared with 12,020,068 items, amounting to $7,113,475,300 in 1918. The average amount per item during 1919 was $445, as compared with $59l"during 1918. This is no doubt accounted for by collecting for a number of small new member banks and collecting on a considerably increased number of small banks which have been added to our par collection list. It may also be pointed out in this connection that the above clearing figures for 1919 do not include 79,627 cash letters containing approximately 5,000,000 items, amounting to $1,596,000,000, which were sent direct by our member banks to other Federal Reserve Banks and branches. As the direct routing of letters was not as much practiced during 1918 by our member banks, the clearing operations have in reality increased during 1919 to a larger extent than the above comparative figures would indicate. During 1919, we actually handled in our transit department a daily average of 69,319 items, amounting to $30,808,543, as compared with the daily average during 1918 of 39,540 items, amounting to $23,399,589. The largest number handled on any one day during 1919 was 122,529. In addition to the two foregoing functions, there are other very important services which have been rendered to the member banks in the fifth district in 1919, to a proportionately increased extent, viz: (a) Receipts and shipments of currency from and to banks in the fifth district. (b) The use of our private leased wires for the transaction of business wherever possible to do so. (c) Wire transfers of funds. (d) Payment of interest coupons from United States bonds. (e) The cutting and creditmg of interest coupons from bonds pledged with the Federal Reserve Bank as collateral or for safekeeping. (a) During the year 1919, the bank received $169,276,368 of currency from banks in the fifth district, and during the same period, shipped to banks in the fifth district $177,320,587. Of the above figures, $1,002,962 was received from nonmember banks and $344,679 was shipped to nonmember banks. It is apparent from these figures that practically all of this service was rendered to member banks and that nonmember banks were benefited to a negligible extent. (b) Our private leased wires were used freely for the benefit of our member banks, and wherever it has been possible to transact business for them over these wires the service has been rendered without cost to them. This system of leased wires between all Federal Reserve Banks and branches has made possible the collection of checks all over the United States for our member banks in approximately half the time necessary to collect items under the DISTRICT NO. 5—RICHMOND. 369 old mail system. Checks on other Federal Reserve districts are cleared through the gold settlement fund, which is held by the Federal Reserve Board at Washington, in which each Federal Reserve Bank participates, and items on Federal Reserve Bank and branch cities are credited through this fund upon the day of receipt by the other Federal Reserve Bank or branch. During the year 1919 we received from other Federal Reserve Banks, through daily clearings, $5,575,000,000, and paid to other Federal Reserve Banks for items on the fifth district, through daily clearings, $5,472,000,000. It is also interesting to note that during the year 1918, we cleared through the gold settlement fund checks on other Federal Reserve Banks amounting to $2,401,000,000 and paid through this fund checks on the fifth district amounting to $2,328,000,000. The amount cleared in 1919 more than doubled the amount cleared in 1918 and evidences the increasing extent to which the facilities of the Federal Reserve Banks are being used by members. (c) During the year 1919 the Federal Reserve Bank of Richmond sent 21,935 messages to other Federal Reserve Banks and branches and to Government headquarters at Washington over its private leased wires, and, during the same period, received from the same oints 23,103 messages, making a total of 45,038 messages thus andled during the year. Of this total number of messages, 15,105, or 34 per cent, were messages transferring funds for account of our member banks, comprising 6,502 transfers for our member banks to banks in other Federal Reserve districts, amounting to $456,000,000, and 8,603 transfers to banks in the fifth district from banks in other Federal Reserve districts, amounting to $653,000,000. These amounts were transferred without delay and without cost to our members. (d) During the year 1919 the bank received and paid in number 1,913,883 interest coupons from United States securities aggregating $9,194,218. (e) During the same period our custodian of securities clipped 306,747 coupons amounting to $3,010,712 from securities in his possession, pledged by banks as collateral or for safe-keeping, and the amounts were credited to banks owning the securities without} trouble or expense to them. E FINANCIAL RESULTS OF OPERATION. The financial operations during 1919 exceeded expectations, resulting in a very large increase in earnings. The total resources at the close of business December 31, 1919, were $312,867,517, while at the close of 1918 the total resources were $241,967,082, the increase during the following year being 29.3 per cent. Productive assets at the close of business 1919 were $134,901,780, and at the close of 1918 they were $97,724,639, an increase of 38.1 per cent. The increase in productive assets is reflected in gross earnings, which were $4,775,324 for 1919, as compared with $2,979,048 for 1918, an increase of 60.3 per cent. Expenses during 1919 were $911,927 and during 1918 expenses were $653,820, an increase of 39.5 per cent. It is noted that the ratio of increase in expenses has not kept pace with the ratio of increase in gross earnings. It is also interesting to note that while gross earnings increased 60.3 per cent, the avera 370 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. annual rate of earning on productive assets was less for 1919 than for 1918, being 0.0416 for 1919 and 0.0429 for 1918. Likewise the average rate of discount charged on notes discounted for members was reduced from 0.044 in 1918 to 0.043 in 1919. Surplus was increased from $1,156,270 at the close of 1918 to $5,820,463 at the close of 1919. While this is an actual increase in surplus of $4,664,193, a part of the increase consists of $1,039,799 reserved for franchise tax at the close of business 1918, which was credited to surplus account during 1919 because of a revision of the Federal Reserve Act. The balance of the increase consisted of profits for the year 1919. Surplus at the close of 1919 is approximately a million and a half dollars in excess of paid-in capital stock. Total investment operations during the year 1919 were $4,229,440,665, compared with $2,264,563,936 during 1918, an increase of 87 per cent. The following is a condensed statement of earnings and expenses for 1919: Daily holdings. Bills discounted Bills purchased United States securities Penalties and sundry profits.. Total.. Expenses Daily Total earnings. earnings. $94,545,750 7,686,825 9,206,479 $11,233 963 508 379 $4,099,953 351,418 185,293 138,660 111,439,054 13,083 4,775,324 911,927 Net earnings. Annual rate of earning. 0.0434 .0457 .0201 3,863,397 DISCOUNT OPERATIONS. Discount operations during 1919 aggregated $4,130,942,910, of which $3,982,600,640, or 96.4 per cent, consisted of paper secured by Government war obligations. Four hundred and fifteen member banks were accommodated during 1919 through the discount or purchase of paper, which number is 72 per cent of the average number of member banks in the district during the year. During 1918, 373, or 66 per cent of member banks, were accommodated. Ninety-five per cent of paper handled during 1919 was discounted for a period of 15 days or less. Demands for credit by banks in this district during 1919 were probably heavier than in any other Federal Reserve district in proportion to the resources of the banks, and consequently the Federal Reserve Bank of Richmond drew upon the reserves of other districts to a larger extent than any other Reserve Bank. During the year it rediscounted with other Federal Reserve Banks $842,945,500 of members7 notes, the maximum amount under discount at any one time reaching $55,000,000. Member banks' liability for paper discounted reached the highwater mark the first part of August. At the close of business, August 4, members' paper discounted by or sold to the Federal Reserve Bank of Richmond amounted to $156,000,000, of which the bank had rediscounted $55,000,000 with other Federal Reserve Banks. On the DISTRICT NO. 5—RICHMOND. 371 same date our members' reserves were $54,000,000, or less than onethird of their total discounts with us, and actually less than the amount we had rediscounted with other Federal Reserve Banks. The fact is that when the Federal Reserve Bank of Richmond had discounted for its member banks to its full limit, without impairing its required reserve, it was able to continue meeting the demands of its member banks by drawing upon the reserves of other districts, where demands were not proportionately as heavy, to the extent of $55,000,000. The continuous increase of Federal Reserve notes outstanding from the low point of $104,000,000 on August 21 to the peak of $149,000,000 on December 23 and some liquidation during September and October in bills discounted enabled the bank to retire by October 27 all of its rediscounts with other Federal Reserve Banks. Futher demands from members necessitated rediscounting on December 29 with other Federal Reserve Banks, and on December 31 the amount of such rediscounts was $10,000,000. ACCEPTANCES. During 1919 the bank rediscounted $9,082,378 of trade acceptances, a daily average for the year of $30,074. On December 31, 1919, the balance held was $2,320,376. Open-market purchases of bankers' acceptances amounted to $58,057,255, $5,079,873 of which were purchased from the other Federal Reserve Banks. The total amount is classified as follows: Foreign, $34,454,158; domestic, $23,603,097. RESERVE POSITION. Exhibit B gives an analysis by weeks of net deposits, Federal Reserve notes, reserves, and reserve percentages for the year 1919. Net deposits were highest in the month of November, while Federal Reserve note circulation was highest during the month of December. Our reserve position was highest during November, an average percentage of 0.5036. The following is a table of averages for the entire year of 1919: Net deposits Federal Reserve notes, net $50, 852, 609 124, 318, 643 Combined deposit and note liability 175,171, 252 Actual reserves held 77, 911, 590 Percentage of reserve against combined liability 0. 4448 Percentage of reserve against Federal Reserve notes after fixing 35 per tent against deposits .' , . 4835 MOVEMENT OF MEMBERSHIP. The number of national banks has increased in the year from 528 to 538, and State bank membership from 37 to 46. Total stock subscriptions have increased during the year from 81,244 (50 per cent paid—$4,062,200) to 87,840 shares (50 per cent paid—$4,392,000). State institutions have been admitted to membership as follows: Overlea Bank, Overlea, Md.; The Citizens Bank, Blackstone, Va.; Commerce Bank & Trust Co., Charlottesville, Va.; Merchants & Farmers Bank, Emporia, Va.; Bank of Commerce & Trusts, Rich 372 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. mond, Va.; Independence Trust Co., Charlotte, N. C ; The Peoples Bank, New Bern, N. C ; Citizens Bank & Trust Co., Kock Hill, S. C ; The Home Bank, St. Matthews, S. C. The capital and surplus of the nine new members is $1,928,000 and their total resources about $12,000,000. The number of nonmember banks in the district on December 31, 1919, is 1,480, of which about 600 have sufficient capital and surplus to make them eligible for membership. RELATIONS WITH MEMBER BANKS. The pressure for accommodation from some members has made the application of some restraint necessary, but all needs of the district have been liberally taken care of. During the year we have organized an efficient examination deartment, have established cordial relations with the various State ank examiners of the district and also with the banks examined, and have made the following examinations: E State bank members examined (joint with State authorities) 24 State bank members examined (by Federal Reserve examiners) 4 National banks examined (joint by national bank examiners and Federal Reserve examiners) 4 Total examinations by Federal Reserve examiners 32 (This number does not include four branches of member banks which have been examined by Federal Reserve examiners.) We have also given special attention to visiting members, and these visits have effected a better understanding of the Federal Reserve System. Three hundred and twenty-seven visits to 278 banks have been made by representatives of the Richmond bank (127 members and 151 nonmembers). Representatives of this bank also visited 16 of the principal cities in the district and explained to the representatives of 60 member banks the use of the immediate credit symbol. The immediate credit symbol is a copyrighted device, the use of which is granted to member banks under special contract. Customers' checks bearing the symbol are accepted for immediate credit and charged at once to the member bank's reserve account in accordance with the terms of the special contract. Authority to use the immediate credit symbol has been granted to 27 banks. During the year two State bank members filed notices of withdrawal from the Federal Reserve System and a third announced its intention of withdrawing and asked for instructions as to the procedure to be followed. In all three cases our representatives promptly called on the officers of the banks for the purpose of discussing the situation with them. A number of suggestions were made and a few small difficulties smoothed out. In all three cases the banks decided that it was to their interest to remain in the system. During the year representatives of this bank have appeared before the directors of five nonmember banks for the purpose of discussing State bank membership in the Federal Reserve System. Applications were received from all five banks. DISTRICT NO. 5—RICHMOND. 373 NOTE ISSUES, The high-water mark with respect to Federal Reserve notes in circulation was reached on December 23 of both the years 1918 and 1919, and declined to a slightly smaller volume by December 31 of each year, as shown in the following table: 1918 $139,589,740 137,478,030 In circulation Dec. 23. Balance Dec. 31 1919 $149,396,320 145,765,320 These notes declined from $139,589,740 on December 23, 1918, to $137,478,030 on December 31, and continued to decline in volume until August 21, 1919, when they reached $104,071,515, which was low-water mark for the year. In 1919 they duplicated the previous year's movement by declining from $149,396,320 on December 23 to $145,765,320 on December 31, and it may be safely predicted that they will continue to decline during 1920, as they did during 1919, and reach low-water mark some time during the summer of 1920. Federal Reserve bank notes outstanding on December 31, 1919, amounted to $12,216,000, of which $158,050 were held by the bank, leaving a balance of $12,057,950 in actual circulation. These were secured by $12,260,000 United States 1-year certificates of indebtedness. INTERNAL ORGANIZATION. At the close of the year 1919 the number of employees of the bank was 401, which includes 1103 at the Baltimore branch and 23 in the war loan organization. This number (401 employees) is composed of 179 men and 222 women. The continued growth of the bank has necessitated a corresponding expansion in its official and clerical force. The transit department alone has doubled its force from 79 to 157, and, in addition to other details, handled about 21,000,000 items, compared with about 12,000,000 in 1918. At the close of 1918, there were 254 employees, including 64 at the Baltimore branch. The increase in employees at the close of business, compared with the opening of the year, is 58 per cent. During the year the following additions were made to the official force: Edward Waller, jr., assistant cashier, and J. S. Walden, jr., auditor, vice W. E. Cadwallader, comptroller, retired. John F. Bruton, of Wilson, N. C, was reelected a class A director for a period of three years, to succeed himself, and James F. Oyster of Washington, D. C, was reelected a class B director for a period of three years, to succeed himself. The bank has continued to occupy the two store buildings, Nos. 1107 and 1109 East Main Street, with its bond delivery department at No. 1016 East Main Street and its war loan organization at No. 809 East Main Street. These quarters, which were referred to in the 1918 report as being inadequate, have become increasingly so, i The war loan organization was materially reduced at the end of the year 1919. In July of that year, there were approximately 100 employees engaged in the work. 374 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. and necessarily hamper efficiency in the handling and dispatch of business, to say nothing of comfort and hygienic conditions. Plans for the erection of an adequate building at the corner of Franklin and Ninth Streets, referred to in the last annual report, were adopted in the spring, and the necessary expenditure of about $1,500,000, including vaults, mechanical equipment, furniture, and fixtures, was authorized by the Federal Reserve Board. A contract for the work was entered into and work commenced early in June. BALTIMORE BRANCH. The volume of business transacted by the Baltimore branch during the past year, which is included in the total transactions of the bank, shows a large increase, corresponding in proportion to the general business throughout the district. This increase has necessitated corresponding additions to the force, which has been increased from 64 on January 1 to 101 at the close of the year, 51 of whom are men and 50 women. During the year 58 banks in West Virginia, chiefly along the line of the Baltimore & Ohio Railroad, have been authorized to transact their business with the branch, and the facilities offered these banks and the banks in Maryland have apparently been very satisfactory to them. GOLD SETTLEMENT FUND. The operations in the gold settlement fund during the year 1919 have shown an immense increase. During the year 1919 we received through this fund $6,521,746,000 and disbursed $6,510,799,000. These figures compare with $2,530,904,000 of receipts and $2,538,751,000 of disbursements during the year 1918. It will be seen that the amounts for 1919 are more than two and a half times those for 1918. The Federal Reserve Bank clearings through this fund amounted to $11,046,630,000, as compared with $4,729,196,000 for the year 1918. CAMPAIGN FOE PAR POINTS. While progress in the direction of universal par collection has been rapid in all parts of the district, there are still a considerable number of banks in the Virginias and Carolinas that have not yet signified their willingness to do their part in bringing about the universal par collection of checks. The District of Columbia has been all par since shortly after the inauguration of the Federal Reserve System, and the State of Maryland (with 264 banks) became all par during July, 1919. The following statement clearly shows the present situation for the whole country, and the progress that is being made: Of the 29,586 banks and bankers in the country, 25,571 are on the par list. Checks drawn on all banks and bankers situated in 31 States are now collectible at par, as compared with 17 States a year ago. Six Federal Reserve districts out of 12 are now all par. This means that items drawn on over 86 per cent of the total number of banks and bankers throughout the entire country can be received for collection and credit by the Federal Reserve Banks. During the calendar year 1919 6,581 banks were added to the par list, leaving only 4,015, or 14 per cent of the whole, whose checks can not yet be collected at par. 375 DISTRICT NO. 5—RICHMOND. Summary of activities. 1919 Paper discounted and bought Banks accommodated (number) Investments in United States securities Clearings with other Federal Reserve Banks through gold settlement fund... . . . . . . . . Transit operations: Number of checks . Amount Currency receipts: From banks in fifth district From other Federal Reserve Banks Currency shipments: To banks in fifth district To other Federal Reserve Banks Telegraphic transfers of money for member banks: Number .. Amount Total number of telegrams sent and received over private wire Bond coupons clipped for customer banks: Number Amount Interest coupons from United States securities received and paid: Number Amount 1918 $4,189,000,165 415 $40,440,000 $2,230,942,037 373 $33,621,900 $11,046,630,000 $4,729,196,000 20,934,355 $9,304,179,945 12,020,068 $7,113,475,300 $169,276,368 $70,805,815 $31,113,635 $177,3r0,587 $72,911,000 $26,603,050 15,105 $1,108,348,803 45,038 306,747 $3,010,712 1,913,888 $9,194,218 FISCAL AGENCY OPERATIONS. The scheme of organization for the Victory Liberty loan differed from that followed in previous campaigns in being under the active direction of a volunteer chairman, appointed by the governor of the Federal Reserve Bank, and in having a much larger executive staff of paid workers at district headquarters than in any previous campaign. This paid organization numbered at one time approximately 100 people, including some 25 traveling representatives, together with branch offices in Washington, Baltimore, and Huntington. After the Victory loan was over and the war savings movement was better organized, this paid staff was gradually reduced to 24 people, beginning with January 1, 1920. As was the case in the fourth loan, the county was made the unit of organization during the Victory loan, the chairmen for the counties being appointed by the State chairmen subject to the approval of the district chairman. Each of the county chairmen appointed committees to look after Tthe publicity, the securing of subscriptions, and the handling of all w ork in connection with the loans in their respective counties. District chairmen were appointed by several of the State chairmen to supervise the work in groups of counties. Before the beginning of the Victory Liberty loan campaign each State in the district held a conference of its Liberty loan workers and plans of organization were thoroughly worked out and definitely decided upon. All the State and local chairmen were volunteers, quite a number of whom not only contributed liberally of their time but also paid considerable portions of the expenses incident to their work. Apportionments to the Victory Liberty loan were assigned to all individual banking institutions and trust companies of the district based on total banking resources as of December 31, 1918, the latest 376 ANNUAL BEPORT OF THE FEDERAL RESERVE BOARD. figures available. The county apportionments were based on the total banking resources of the counties and on population. The fifth district's quota for the Victory loan was $210,000,000; the district's subscriptions aggregated $225,146,850, an oversubscription of 7.2 per cent. The number of subscribers totaled 574,967. The following table gives the record of the fifth district as a whole in each of the five Liberty loans: Quota. First loan Second loan Third loan Fourth loan Victory loan Total Subscribed. Per cent ol quota subscribed. $88,000,000 120,000,000 130,000,000 280,000,000 210,000,000 $109,737,100 201,212,500 186,259,050 352,685,200 225,146,850 124.6 167.6 143.3 125.9 107.2 828,000,000 1,075,040,700 129.8 During 1919, United States Treasury certificates of indebtedness issued in anticipation of the Victory Liberty loan, of 1919 taxes, of 1920 taxes, and of 1920 loans wTere sold in an aggregate total of $306,575,000, while subscriptions to Victory notes allotted aggregated $210,889,300. War savings stamps, thrift stamps, and Treasury savings certificates were sold through the Federal Reserve Bank (exclusive of post office sales) in an aggregate amount of $499,383.69. This makes a total aggregate subscription to Government securities during the year of $517,963,683.69, exclusive of War Finance bonds sold totaling $3,545,000. GENERAL BUSINESS AND BANKING CONDITIONS. Unprecedented prosperity has been the outstanding characteristic of business—agricultural, commercial, and manufacturing—throughout the district during the past year. In the agricultural portion of the district this has resulted primarily from the high prices realized from cotton at 35 to 40 cents per pound, high grades and long staples selling for double these prices, and tobacco at 30 to 50 cents per pound, high grades selling up to $1 and more per pound. Cotton products have sold at proportionately even higher prices, yielding enormous profits to manufacturers, and mill properties and shares have changed hands at dangerously speculative prices. Sales of farm lands have been active at an advance over normal prices, based on the inflated value of crop returns for the year. These operations have created a large volume of farm paper, and more of this than is desirable has probably found its way into the banks. The year closes with a realization of the necessity for the curtailing of credits, but with confidence in the fundamental soundness of general business and the belief that conservatism in the direction of our affairs will insure satisfactory results for the coming year. 377 DISTRICT NO. 5—RICHMOND. EXHIBIT A.—Movement of 'principal earning assets of the Federal Reserve Bank of Richmond during the calendar year 1919. [In thousands of dollars.] Date. Jan. 3 Jan. 1 0 . . . . Jan. 1 7 . . . . Jan. 2 4 . . . . Jan. 3 1 . . . . Feb. 7 Feb. 14.... Feb. 20.... Feb. 28.... Mar. 7 Mar. 14.... Mar. 21.... Mar. 28.... Apr. 4 Apr. 11.... Apr. 18.... Apr. 25.... May2 May9 May 16.... May 2 3 . . . . May 29.... June 6 June 13.... June 20.... June 27.... July 3 July 11 July 18.... July 25 Aug. 1 . . . . Aug. 8 . . . . Aug. 155*. Aug. 2 2 . . . Aug. 2 9 . . . Sept. 5 . . . . Sept. 1 2 . . . Sept. 1 9 . . . Sept. 26... Oct.3 Oct. 10 Oct. 17.... Oct. 24.... Oct. 31 Nov. 7 Nov. 14... Nov. 21... Nov. 28..., Dec. 5 Dec. 12 Dec. 19 Dec. 26.... Discounted paper se- Other discured by counted United paper. States war obligation?. 71,989 77,936 75,206 83,296 70,034 77,286 81,019 84,477 89,636 78,761 77,348 86,799 86,556 86,182 89,157 83,680 91,138 86,677 87,626 85,677 81,413 81,594 76,132 82,852 84,764 73,349 72,741 73,121 76,725 82,053 76,296 77,448 78,939 73,373 77,422 75,143 73,246 72,295 72,097 75,099 80,471 83,178 85,780 87,627 84,580 86,531 84,986 83,560 84.478 91,548 89,406 87,901 14,088 12,732 11,877 12,560 13,040 12,563 12,008 11,480 10,913 11,671 10,649 11,898 13,798 12,902 11,112 9,472 11,692 12,010 11,237 11,547 12.190 12,503 12,138 11,587 13,956 14,826 15,060 14,847 15,106 13,916 13,595 12,353 12,585 14,272 14,888 14,841 16,647 19,226 20.191 20,312 18,641 18,013 17,125 14,787 12,666 12,571 12,598 14,340 15,324 16,280 19,179 20,760 1+2. 86,077 90,668 78,073 95,856 83,074 89,849 93,027 95,957 100,549 90,432 87,997 98,697 100,354 99,084 100,269 93,152 102,830 98,687 98,863 97,224 93,603 94,097 88,270 94,439 98720 88,175 87,801 87,968 91,831 95,969 89,891 89.801 91,524 87,645 92,310 89,984 39,893 91,521 92,288 95,411 99,112 101,191 102,905 102,414 97,246 99,102 97,584 97,900 99.802 107,828 108,585 108,661 Per cent 1+3. Bills bought in open market. 83.6 86.0 86.4 86.9 84.3 86.0 87.1 88.0 89.1 87.1 87.8 87.9 86.2 87.0 88.9 89.8 88.6 87.8 88.4 88.1 87.0 86.7 86.2 87.7 85.9 83.2 82.8 83.1 83.5 85.5 84.9 86.2 86.2 83.7 83.9 83.5 81.5 79.0 78.1 78.7 81.2 82.1 83.4 85.5 87.0 87.3 87.1 85.4 84.6 84.8 82,3 80.9 5,943 6,470 7,134 7,433 7,614 7,714 7,619 7,085 7,134 6,568 6,610 6,932 7,155 7,420 7,170 6,705 7,474 7,578 7,555 7,740 7,083 6,760 7,393 6,961 6,661 7,744 7,194 6,987 6,711 7,868 8,290 7,978 7,473 7,425 7,002 7,254 7,212 5,982 6,329 6,022 5,663 5,577 5,357 5,883 6,469 6,835 7,175 11,810 12,004 13,241 14,394 16,031 Total bills dis- United Total counted States earning and securities. assets. bought. 92,020 97,138 94,217 103,2S9 90,688 97,563 100,646 103,042 107,683 97,000 94,607 105,629 107,509 106,504 107,439 99,857 110,304 106,265 106,418 104,964 100,686 100,857 95,663 101,400 105,381 95,919 94,995 94,955 98,542 103,837 98,181 97,779 98,997 95,070 99,312 97,238 97,105 97,503 98,617 101,433 104,775 106,768 108,262 108,297 103,715 105,937 104,759 109,710 111, 806 121,069 122,979 124,692 8,533 6,533 6,533 6,533 6,533 6.533 6; 609 6,609 6,609 6,609 6,609 6,609 6,594 6,594 6,694 6,694 7,094 7,094 10,394 7,494 7,494 7,594 7,894 8,094 8,594 8,644 9,129 9,729 9,729 9,729 10,229 10,229 10,929 11,294 11,294 11,794 12,394 12,594 12,894 12,894 12,894 13,094 13,094 13,095 13,495 13,495 13,495 13,495 98,053 105,671 100,750 109,822 97,221 104,096 107,179 109,651 114,292 103,609 101,216 112,238 114,118 113,113 114,033 106,451 116,898 112,859 113,112 111,658 107,780 107,951 106,057 108,894 112,875 103,513 102,889 103,049 107,136 112,481 107,310 107,508 108,726 104,799 109,541 107,467 108,034 108,797 109,911 113,227 117,169 119,382 121,156 121,191 116,609 119 031 117,853 122,805 125,3U1 134,564 136,474 138,187 378 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 5: FEDERALRESERVEBAMOFniCHMOnD MOVEMENT OFEARNING ASSETS DURING CALENDAR YEAR 1919. 1 14 *!" 25 25 UNITED STATES SECURITIES. UO 25 25 ACttFTAHCES BOUGHT. zoo 80 60 40 PERCENTAGE OEWARFAPER TO TOTAL D1SCOVT1TS TOTAL BILLS DISCOUHTED, -D/A/ID WAR PAPER;W; TOTAL EARNINGASSETS. \FCB\Maf\A/^L\M^ \ DISTRICT NO. 5 i RICHMOND. 379 fEDERALRESEWE BANK OFRICHMOND NET DEPOSIT LIABILITY. t.R NOTE CIRCULATION. CA5HRESERYE5.ANDRESERVERATtO.l9l9. '/O 60 50 30 20 JO RESERVE MT!O, (PERCENTA6E0FC+L) PEPOSITAW FR NOTE LIABILITIES, "L\ ANP TOTAL RESERVES;C*. 178983—20 25 70 60 50 40 30 2O 10 0 380 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT B.—Movement of gold and cash reserves, Federal Reserve note and net deposit liabilities, and the reserve percentage of the Federal Reserve Bank of Richmond during the calendar year 1919. [In thousands of dollars.] 6 Date. Jan. 3 . . . Jan. 10.. Jan. 17.. Jan. 24.. Jan. 31.. Feb. 7... Feb. 14.. Feb. 20.. Feb. 28.. Mar. 7... Mar. 14.. Mar. 21.. Mar. 28.. Apr. 4... Apr. 11.. Apr. 18.. Apr. 25.. May 2... May 9... May 16.. May 23.. May 29.. June 6... June 13. June 20.. June 27. July 3 . . . July 11.. July 18.. July 25.. Aug. 1 . . Aug. 8 . . Aug. 15. 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. 14. Nov. 21. Nov. 28. Dec. 5... Dec. 12.. Dec. 19.. Dec. 26.. Gold Cash reserves. reserves. 79,793 78,960 71,288 70,886 77,328 72,926 79,483 76,140 72,246 84,455 87,864 94,779 74,696 73,833 73,775 72,392 68,946 71,163 73,699 70,335 71,667 68,914 66,854 69,528 79,641 67,215 66,527 65,592 68,905 65,316 65,291 65,724 66,933 65,294 67,017 64,648 72,841 74,910 73,153 76,986 80,210 83,615 90,267 96,883 104,976 104,425 99,500 99,670 93,621 91,083 93,235 81,543 79,966 79,166 71 528 71,074 77,551 73,130 79,714 76,404 72,499 84,691 88,023 95,212 75,054 74,317 74,322 72,979 69,489 71,720 74,148 70,659 72,103 69,313 67.253 69,933 80,091 67,667 66,970 66,087 69,408 65,840 65,814 66,234 67,417 65,728 67,466 65,141 73,315 75,326 73,521 77,224 80,435 83,806 90,490 97,113 105,171 104,601 99,698 99,881 93,830 91,262 93,421 81,731 Federal Reserve notes in Net actual deposits. circulation. 137,582 137,822 136,403 133,727 136,070 133,892 130,958 130,661 128,595 128,544 127,679 127,441 426,198 128,946 127,604 125,792 125,391 123,311 121,152 118,764 115,902 115,484 114,780 112,964 110,852 109,630 109,640 107,699 106,877 105,735 105,425 105,897 104,489 104,455 104,673 107,702 108,646 111,736 115,100 121,695 126,448 131,791 135,114 138,592 141,365 141,311 142,403 141,556 142,296 143,774 147,427 148,693 33,144 37,461 25,710 36,718 29,072 32,530 45,018 44,189 46,596 48,415 50.011 68,467 51,198 47,327 48,855 42,474 49,383 49,523 53,977 52,639 51,504 49,140 45,913 52,923 69,247 48,461 -46,789 48,105 55,809 58,783 53,096 53,391 56,608 51,075 56,566 48,871 56,277 55,592 50,976 51,186 52,748 52,717 57,543 60,471 61,426 62,694 56,251 61,132 57,996 61,706 61,639 51,091 3+4. 170,726 175,283 162,113 170,445 165,142 166,422 175,976 174,850 175,191 176,959 177,690 195,908 177,396 176,273 176,459 168,266 174 774 172,834 175,129 171,403 167,406 164,624 160,693 165,887 180,099 158,091 156.429 155^ 804 162,686 164,518 158,521 159,288 161,097 155,530 161,239 156,573 164,923 167,328 166,076 172,881 179,196 184,508 192,657 199,063 202,791 204,005 198,654 202,688 200,292 205,480 209,066 199,7*4 Ratio of cash reserves to net deposit and Federal Reserve note liabilities combined 46.8 45.2 44.1 41.7 47.0 43.9 45.3 43.7 41.4 47.0 49.5 48.6 42.3 42.2 42.1 43.4 39.8 41.5 42.3 41.2 43.1 42.1 41.9 42.2 44.5 42.8 42.8 42.4 42.7 40.0 41.5 41.6 41.8 42.3 41.8 41.6 44.5 45.0 44.3 44.7 44.9 45.4 47.0 48.8 51.9 51.3 50.2 49.3 46.8 44.4 44.7 40.9 DISTRICT NO. 5—RICHMOND. 381 EXHIBIT C.—Comparative statement of condition of Federal Reserve Bank of Richmond. Dec. 31, 1919. Dec. 31, 1918. RESOURCES. Reserves: Gold coin and certificates Gold settlement fund—Federal Reserve Board. Gold with foreign agencies Total gold held by bank Gold with Federal Reserve agent Gold redemption fund, Federal Reserve notes. Total gold reserves Legal tender notes, silver, etc. Total reserve; iSarning: assets: Bills discounted—secured by Government war obligations.. Bills discounted—all other Bills purchased in open market Total bills discounted and bought United States Government bonds and Victory notes. United States certificates of indebtedness United States 1-year Treasury notes Total earning assets Uncollected items: Currency of other banks and unassorted currency. Checks and other cash items Exchanges for clearing house Transit items Total uncollected items Miscellaneous: Interest accrued on United States securities Advances to Government committees Redemption fund—Federal Reserve bank notes. Bank premises All other resources Total miscellaneous assets. Total resources Capital: Capital paid in. Surplus Total gross deposits. Note circulation: Federal Reserve notes in actual circulation. Federal Reserve bank notes in circulation.. Total notes outstanding. Miscellaneous: Reserve for Federal Reserve Board assessment. Reserve for expenses accrued and unpaid Reserve for franchise tax Reserve for other taxes Unearned discount All other liabilities Total miscellaneous liabilities. $2,358,470.00 14,253, 728.99 204,010.61 34,055, 743. 65 39,998,970.00 7,196, 777. 49 16,816,209.60 62,990.765.00 5,368,300.00 81,251,491.14 190,339. 55 85,175,274. 60 223,543.45 81,441, 830. 69 85,398,818. OS 81,506,691. 34 23,495,584.34 16,404,904.82 72,434,331.75 13,806,940. 90 5,465,166. 23 121,407,180. 50 1,234,600.00 12,260,000.00 91,706,438.88 1,234,200.00 3,885,000.00 899,000.00 134,901,780.50 97,724,638.88 4, 742,114.00 154, 714. 81 5,113,094.03 84,182,455.68 5,918,780. 00 140,093. 54 5,435,763. 87 46,207,939. 84 94,192,378. 52 57,702,577.25 106,576.81 514,860. 47 643,300.00 504,024. 50 562, 765. 66 22,159.86 345,436.19 309,900.00 290,000.00 173,551.58 2,331,527.44 1,141,047.63 312,867,517.15 241,967,081. 81 4,392,000.00 5,820,462. 63 4,062,200.00 1,156,270.50 10,212,462.63 5,218,470.50 2, 839, 730. 49 62,712,122.52 3,542,408. 75 33, S00,592. 08 72,560. 32 41,522,428.74 2,795,094.97 54,161,937. 72 12,512,777. 25 111,319.95 24,390,387. 26 144,489, 842. 90 93,971,517.15 145, 765,320.00 12,057,950.00 137,478,030.00 4,005,500.00 157, 823,270. 00 141,483,530.00 LIABILITIES. Total capital and surplus.. Deposits: United States Treasurer Member banks—reserve accounts Foreign Governments Due Federal Reserve banks—collected funds. Cashier's checks Deferred availability—uncollected funds Total liabilities $2,419, 725.00 25,201,328. 28 6,434,690.37 25,531.16 20,316. 50 19,970. 00 260,184. 59 15,939.37 1,039,798.76 190,567.40 63,198.00 341,941. 62 1,293,564.16 312,867,517.15 241,967,081. 81 DISTRICT NO. 6—ATLANTA. JOSEPH A. MCCORD, Chairman and Federal Reserve Agent. INTRODUCTION. The operations of the Federal Reserve Bank of Atlanta during the period of readjustment since the armistice and for the year 1919 nave been more active than during the war period of 1918. Expansion in all lines had made heavy demands on the banking interests, which, in part, have been met by the increased deposits of banks, while it has been left for the Federal Reserve Bank of Atlanta to make up the deficiency. The result has been an increase in the loans to and rediscounts for member banks over the amounts held during the latter months of 1918 and the early months of 1919. Increase in Government-secured obligations is due partially to the notation of the Victory loan and partially to a general demand for commercial, industrial, and agricultural purposes, the banks using their Government collateral for these purposes in order to secure the lower rate of discount. Demand from the member banks for other classes of discounts is attributed to business expansion and higher prices rather than to a speculative demand, which so far as has been observed is negligible throughout the district. • During the month of December there was considerable liquidation by the members of this district, resulting in increased reserves for the Federal Reserve Bank of Atlanta, and placing it in a position to rediscount for other Federal Reserve Banks. The increase of nearly every item on the balance sheet for 1919 is an indication of the increasing use by member banks of the facilities offered by the Federal Reserve Bank of Atlanta. More detailed information will be given under appropriate heads and schedules. REVIEW OF SERVICE. Member banks throughout the district are taking advantage of the facilities offered more than ever before. Member and nonmember banks were advised, effective March 17, that ,when their relations with this bank or its branches made it necessary to ship currency for credit or in payment of cash letters, charges would be absorbed by the Federal Reserve Bank of Atlanta, and also that charges would be absorbed for all shipments to member banks on currency shipped them by this bank or its branches. On March 31, 1919, the member banks of the district were advised that the Federal Reserve Bank would absorb the cost of telegrams instructing charges to their accounts, viz., (a) shipments of currency; (6) credit to another member bank; (c) and the continuance of 383 384 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. transfer of funds for credit with any member bank of any other Federal Keserve Bank; and when certified to, charges would be absorbed for messages instructing any member bank in the United States to make transfer of funds through the Federal Keserve Bank of its district to us for credit of our member. During the year there have been many other improvements of service to the member banks, and it is believed that the year just ended has shown the real value of the Federal Reserve System. FINANCIAL RESULTS OF OPERATION. A comparative statement of the condition of the Federal Reserve Bank of Atlanta as of December 31, 1918 and 1919, is shown in Exhibit C of this report. The total resources at the close of business December 31, 1919, show 37 per cent, or $76,447,455.27 increase as compared with 1918. By referring to the exhibit mentioned it will be noted that practically all of the items on the statement of condition show increases. Gross earnings for 1919 totaled $4,416,001 and show an increase of 92 per cent, or $2,122,942.71 over the preceding year, while total expenses, $972,217, show an increase of $331,946.07, or 52 per cent. After deducting all expenses, dividend payments, and amounts authorized by the Federal Reserve Board to be reserved, $3,185,000 was carried to surplus fund. This amount is an increase of $1,715,000, or 116 per cent, as compared with the previous year. DISCOUNT OPERATIONS. Puring the year 1919 the discount operations of this bank have been very active. Out of the 427 member banks in this district more than 200 have had paper under discount at all times. During the month of June the maximum number of banks were accommodated, being 265. The maximum number of items handled was reached in September, when 5,650 notes were discounted. Exhibit A, "Movement of earning assets," shows a distribution of earning assets by weeks and also the ratio of assets secured by war obligations to the total holdings of discounted paper. Particular attention is called to this percentage. In January, 1919, the percentage was 64 and gradually increased to 87 per cent on August 8; from that date on a decrease is shown in the percentage, and at the end of December it was only 68 per cent. This reflects a gradual liquidation of loans secured by war obligations. The rediscounts of commercial paper for the year, while not as heavy as that secured by war obligations, have been very active, particularly during September, October, and November. During the month of December there was a very decided liquidation in this class of paper, the total amount in November being $34,000,000 and for December only $9,000,000. Discount holdings of this bank have been largely secured by Liberty bonds and Treasury certificates. This, however, does not indicate that the proceeds of the notes discounted were used entirely for Government financing. For a greater part of the year there has been a preferential rate of one-half to tnree-fourths per cent on notes secured by Government obligations, and it is, therefore, obvious DISTRICT NO. 6—ATLANTA. 385 that member banks, when in need of funds to care for the commercial or agricultural requirements of their community, rediscounted paper secured by war obligations instead of commercial paper because of the differential rate. ACCEPTANCES. Trade acceptances.—Trade acceptances are now being generally used throughout the district and their use is becoming broader as the business interests recognize and appreciate the advantage of securing acceptances in settlement of shipments, instead of opening book accounts and giving future dating. In order to encourage the use of trade acceptances in this district, they have enjoyed when offered to this bank for discount a rate of one-fourth of 1 per cent less than the prevailing rate on commercial paper. Growth of open market for acceptances.—The development of an open market for bankers' acceptances in this district has not progressed to any great extent, the only market for bankers7 bills being the Federal Reserve Bank of Atlanta. Banks that extend acceptance credit also obligate themselves to sell the bills for the account of the drawer. It has been difficult to educate them to the idea of lending their credit in accepting drafts, charging the customary fee and requiring the drawer to sell the bill in the open market. Policy regarding acceptance purchases.—The policy of this bank now is to purchase bankers' bills from the accepting bank, and on account of this policy it is required that banks offering their own acceptances for purchase must attach the documents when the amount of such bills of one drawer is in excess of 10 per cent of the capital and surplus of the offering bank. However, to discourage member banks from offering their own acceptances to this bank for purchase, a differential is made in the rate of acceptances of this kind; that is, acceptances purchased from the accepting bank are discounted at a rate higher than if they were offered and indorsed by a bank other than the accepting bank. It is hoped that the difference in rate will encourage the drawer to seek an open market for bankers' bills and thus create and establish a real open market for bankers' bills in this district. RESERVE POSITION. Due to discount accommodation required by member banks, because of the large amount of Government securities carried, as well as the large volume of cotton and other products awaiting ship bottoms for export, it was necessary during the first five weeks of 1919 that our reserve position be maintained through the rediscount of bills with other Federal Reserve Banks. Shipping then having become available, commodities began their movement to foreign ports, with accompanying liquidation of loans and increase in the deposits of member banks, which in turn enabled us to liquidate our rediscounts and to maintain our reserve position without assistance. From the early part of February until the latter part of August our reserve position remained steady, fluctuating between 42 per cent and 49 per cent. After that time the discount demands of our member banks to replenish reserves depleted by withdrawals of deposits, together with the additional loan accommodation necessary 386 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. to aid in the movement of the new crops, again compelled us to rediscount with other Federal Eeserve Banks to maintain our reserve position. Toward the middle of October, a sufficient volume of the crops having been marketed, a period of liquidation set in, which enabled us to discharge our liability on account of rediscounts and materially improve our reserve position. Subsequent liquidation so strengthened our position that during the last two months of the year we were amply able to care for the abnormal demands of our member banks located in port cities, whose reserves were temporarily frozen by reason of loans that were necessary in order to carry cotton which was being received at the ports, but could not be shipped because of labor disturbances. The close of the year found our reserve position strong, enabling us comfortably to care for the essential needs of our own member banks, as well as to give aid to other sections of the country if necessary. MOVEMENT OF MEMBERSHIP. National hanks.—On December 31, 1918, the national bank membership was 372. During the year 13 new national banks were added to the membership and 22 national banks withdrew by liquidation, resulting in a net loss of national bank membership of 9. Of the 13 national bank additions, 8 were new banks and 5 were State banks converted into national banks. The decrease of 22 national bank members is accounted for as follows: One liquidation, 1 absorbed by a national bank, 8 absorbed by State banks, and 12 succeeded by State banks. State hanks.—On December 31, 1918, 54 State banks and trust companies were reported to be members. During the year 1919 there have been 16 additions to membership and 6 withdrawals, or a net increase of 10 State bank and trust company members for the year. Fifteen of the State bank admissions were new members and one was the result of two State bank members consolidating. Besides these two banks reported as a consolidation, one was absorbed by a national bank and three withdrew from membership. Practically all of the largest State banks and trust companies in the district are now members, there being only one bank in the district with a capital and surplus of $1,000,000 or more that is not a member. There were no failures among the membership of the Federal Reserve Bank of Atlanta during 1919. RELATIONS WITH NATIONAL BANK MEMBERS. Discount operations.—Naturally the largest part of rediscount transactions has been for national bank members, and through rediscount privileges the member banks have been assisted in taking care of the increased volume of business, which almost all of them have had. U Trustee powers.—Fiduciary or additional fiduciary powers authorized under section 11, subsection (fc),of the Federal Reserve Act, have been granted to 22 national banks during the year. There is an apparent inclination on the part of the national banks to broaden their functions, although so far this has not been as marked under DISTRICT NO. 6—ATLANTA. 387 the prevailing conditions of the past year as is anticipated it will be when conditions become more normal. Fiduciary powers have been granted to national banks in the States of the district as follows: Alabama, 14; Florida, 7; Georgia, 8; Louisiana, 3; Mississippi, 4; Tennessee, 10. RELATIONS WITH STATE BANKS AND TRUST COMPANIES. Discount operations.—In common with the national bank members, the State bank and trust company members have rediscounted throughout the year very freely. Examinations.—All State banks and trust companies applying for membership have been examined, with the exception of newly organized banks which were admitted upon their organization certificate. The superintendents of banks have all expressed their willingness to cooperate and are allowing the Federal Reserve Bank's examiners to participate with their examiners in the examination of State bank and trust company; members. This privilege has been exercised in the case of approximately 50 per cent of the State bank members. The arrangement with the superintendents of banks of the various States by which we are permitted to participate in the examinations enables the Federal Reserve Board and the Federal Reserve Bank to obtain information not incorporated in the reports of examination used by the State authorities. These joint examinations have been conducted in thorough accord and harmony with the State examiners and are appreciated by the banks, in that they are not subjected to an additional and independent examination by the Federal Reserve Bank. The various superintendents of banks are also furnishing copies of their independent examinations, one each for the Federal Reserve Board and the Federal Reserve Bank. MEMBER BANKS' RESERVE ACCOUNTS. The reserve balances of both State and national banks have gradually increased during the year, the gross amount being approximately $10,000,000. The highest figure was reached during the month of December, with an average of $58,378,256.45. The majority of the accounts have been very active, particularly for wire transfers. There were 7,933 charges, aggregating $421,885,452.19, transferred to member banks of other districts and 10,936 credits, aggregating $723,252,594.69, for transfers received for credit of our members. It will be seen that transfers received from other districts greatly exceed the transfers to other districts and the transferring of funds by wire is meeting with more favor and the volume is gradually increasing. FISCAL AGENCY OPERATIONS. For Treasury Department.—The fiscal agency operations of the Federal Reserve Bank of Atlanta, though somewhat reduced in total volume as compared with the year 1918, due primarily to the partial cessation of Government financing by the flotation of bonds, coincident with the demobilization of the Army and Navy, and the reduction of the strain on the Government's Treasury for funds for war purposes, were, nevertheless, large in total volume, and show most 388 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. unmistakably that the banks and the people of the Sixth Federal Reserve District stood squarely behind the Government in supporting its program for raising funds necessary to meet the obligations incurred in the prosecution of the war. Sales of Treasury certificates to banks.—-Ten series of Treasury certificates of indebtedness were issued in anticipation of the Victory Liberty loan, eight in anticipation of income and profit taxes payable in 1919, and four in anticipation of the same classes of taxes payable in 1920; and, in addition to these issues of certificates, four other series of loan certificates of indebtedness were issued, all of which were subscribed to very liberalty by the banks, the total of their subscriptions being $328,838,500. Flotation of the Victory loan.—While the Victory Liberty loan lacked the impelling call upon the patriotism of the people that characterized previous Liberty loans issued during the period of actual hostilities when our armed forces were engaged in the terrific struggle with the enemy, this district subscribed practically its entire quota, the amount of the subscription being $133,080,800. Deposits and withdrawals of Treasury funds.—The Secretary of the Treasury continued the established practice of permitting qualified depositary banks to pay for subscriptions for bonds and certificates of indebtedness by credit in special deposit accounts maintained with the Federal Reserve Bank, the purpose being to provide for the gradual withdrawal from the banks of the funds paid to them by subscribers for bonds and certificates of indebtedness, and the funds representing payment of their own subscriptions of the same character. This was accomplished by the balances thus created being withdrawn by order of the Secretary of the Treasury in relatively small installments at intervals of 15 to 30 days, until the balances in the special deposit accounts were completely withdrawn. The total amount held by qualified depositary banks in these special deposit accounts during the year was $224,879,046.36. Sale of war savings certificates.—The organization and direct charge of all activities for the promotion of the sale of Treasury savings certificates were, during this year, known as the war loan organization. It previously consisted of six State organizations, but was this year consolidated into a single district organization with headquarters in Atlanta, and was placed under the supervision of the governor of the Federal Reserve Bank, with Mr. Silas W. Davis in direct charge as Government director. About $2,000,000 worth of Treasury savings certificates have been sold in this district, and the demand is increasing from month to month. The sales in the district will be approximately $10,000,000 in war savings and thrift stamps for this year. Interchange and exchange of Government securities.—In connection with the operations of the fiscal agency, growing out of the sale and delivery of bonds and certificates of indebtedness, it is interesting to note the extensive service rendered to the banks and other holders of those securities, in effecting the interchange and exchange of bonds and certificates of indebtedness, and the conversion of bonds. During the year a total of $32,482,900 of coupon bonds of all issues were interchanged; that is, at the option and request of the holders they were given in exchange for bonds of any one issue, other bonds of DISTRICT NO. 6-—ATLANTA. 389 the same issue of different denominations. This enabled the holders of those securities to obtain bonds of larger or smaller denominations than those initially delivered to them, without any expense to such holders. A total of $7,459,950 of bonds were converted during the year, in accordance with the provisions of law relating to conversion, and a total of $7,527,150 of bonds were exchanged, coupon bonds for registered bonds, and registered bonds for coupon bonds, at the option and in accordance with the washes of the holders of those securities. War Finance Corporation.—Acting as fiscal agent for the War Finance Corporation in this district, this bank sold $1,801,000 of 1-year 5 per cent gold bonds, issued by that corporation on April 1, .1919: and during the course of the year consummated other transactions for account of the corporation amounting to $34,759,239.86. Capital Issues Committee.—At the request of the Capital Issues Committee at Washington, the district capital issues committee suspended supervision of the issue and sale of stocks and bonds at the close of business last year, and there has been no jurisdiction exercised over the issue and sale of stocks and bonds during the year 1919. NOTE ISSUES. Federal Reserve notes.—During the year there has been a comparatively small amount of Federal Reserve notes issued in exchange for gold and gold certificates, the banks and public having patriotically responded to previous appeals for the exchange of Federal Reserve notes for gold or gold certificates; there is probably some gold still in the hands of the banks and the public throughout the district, though it is not believed that there is any great volume. The average circulation of Federal Reserve notes during the year has been greatly in excess of any previous year, which is due to the business expansion, high prices, high wages, and larger amounts of till and pocket money. The redemption of unfit Federal Reserve notes has been heavy throughout the year. A large volume of fit money was redeemed in the early months; however, with the issuance to the Treasurer of the United States of upward of $50,000,000, there was comparatively little fluctuation in the bank's outstanding circulation. The demands for the crop movement from September 15 to December 25 resulted in an increase of outstanding Federal Reserve notes of a little more than $40,000,000. The amount of fit money returned to the Federal Reserve agent by the bank for the year was $82,038,000, or 136 per cent of the total of $60,016,080 which had been returned from organization up to the close of business December 31, 1918. There was issued to the bank $183,598,000 for 1919, as against $211,334,180 from November 14, 1914, to December 31, 1918, or 86.8 per cent. The redemption of unfit money increased more than any other item. The amount redeemed was $65,072,465 for 1919, being 233.4 per cent of the total of $27,904,715 which had been returned from organization to December 31, 1918. Federal Reserve bank notes.—Section 4 of the Federal Reserve Act, as approved December 23, 1913, provides that Federal Reserve Banks may issue bond secured currency in the same manner as it is issued by national banks, except that they are not restricted in the issue to the amount of capital stock of the issuing bank. However, 390 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. only a small amount of this currency was issued prior to June 1, 1918. On December 31, 1918, the Federal Reserve Bank of Atlanta had outstanding circulating bank notes amounting to $6,085,600. During the year 1919 Federal Reserve bank notes of $1 and $2 denominations were freely issued by all Federal Reserve Banks in order to prevent contraction of currency caused by the redemption of silver certificates. The demand for currency of small denomination in the Sixth Federal Reserve District during the year was very heavy, and the amount of notes of these denominations outstanding increased from $6,085,600, as shown by the last annual report, to $15,777,600 at the close of business December 31, 1919. In addition to this amount we were forced, on account of our excessive demands, to obtain through the Federal Reserve Board notes of $1 and $2 denominations issued by other Federal Reserve Banks to the amount of $3,324,000. POSITION OF COMMERCIAL BANKS AS RESULT OF WAR FINANCING. Increase of their obligations.—In view of the fact that the commercial banks were called upon to make up the full quota of the district in the sale of Liberty bonds, Victory notes, and United States Treasury certificates of indebtedness, it became necessary in many instances for the commercial banks to use the bonds, notes, and certificates issued by the Government and purchased by the banks to build up their available resources for the handling of their commercial business. This brought about the unavoidable result of the banks showing in their statements of condition more rediscounts and bills payable than would have otherwise existed. This situation was relieved by the sale of cotton and its by-products at increased prices, the higher prices being the result of decreased production caused by unfavorable weather, the boll weevil, and labor conditions. Deposits in the commercial banks have materially increased during the year. On the whole, the banks in this district are in a very strong financial position. Effect on commercial paper of district.—Agricultural products have brought good prices, the commercial business of the district has been in excellent shape, and those engaged in farming have been enabled to liquidate their obligations, thus relieving the banks, the funds arising from this source being used in the commercial and industrial activities of the district. The sale of commercial paper in the district by leading brokerage houses has materially increased, and while we have no definite figures, we are of the opinion that there is a greater amount of commercial paper being sold in this district arising out of financing of large corporations throughout the United States. As this paper matures, the condition of the district will remain strong and in satisfactory shape for the future. Relation to and effect on general business.—As a whole, we believe general business conditions are going to be materially improved by the purchase of commercial paper during the months when funds can not be used profitably in the district, as these mature at a season of the year when financing will be needed. This, in our opinion, places the banks in a very strong and satisfactory position for the immediate future. DISTRICT NO. 6—ATLANTA. 391 POLICY TO BE PURSUED IN RESTORING THE LIQUIDITY OF BANKS. A great number of the member banks in our district are carrying large amounts of war paper for their customers, and it is not very likely that this class of paper will be totally cleared up for several years, unless there is a reaction in business and other investments. When "settling u p " time comes, investors will turn to Government securities, and those who are now borrowing from their banks on Liberty bonds will very likely be able to dispose of a large amount of these bonds to general investors. It would seem to be a wise policy for the Federal Reserve Bank to continue to raise discount rates, in order to force to some extent those who are borrowing from member banks on Government securities to curtail their borrowings and economize sufficiently to pay off their obligations. OPERATION OF FEDERAL RESERVE BANK BRANCHES. In addition to the branches already in operation at New Orleans, Birmingham, and Jacksonville, an agency was established at Savannah, Ga., on February 5, 1919, and a branch was established at Nashville, Tenn., on October 21, 1919. Savannah agency.—Mr. R. J. Taylor, formerly connected with banks in Savannah and afterwards cashier of a bank at Guy ton, Ga., was appointed manager of the Savannah agency, and Mr. R. N. Groover, formerly connected with banks in Savannah, was appointed assistant manager. The functions of this agency are limited to the furnishing of currency to Savannah member banks, receipt of currency on deposit from Savannah member banks, and the holding of collateral pledged as security to bills offered to and under rediscount with the parent bank. A large percentage of the cotton and other products grown in this district pass through the port of Savannah, and, in order to facilitate their handling, large sums of currency and frequent discount accommodations are needed by Savannah member banks. It was, therefore, deemed advisable to establish an agency there, so that the currency requirements of the member banks in Savannah could be taken care of promptly. Nashville branch.—Mr. Bradley Currey, who prior to his entrance in the United States Army was an officer of the Fourth & First National Bank of Nashville, was elected manager of the Nashville branch, and Mr. W. T. Tyler, formerly connected with Nashville banks, was elected assistant Federal Reserve agent. The board of directors is composed of the following: Messrs. W. H. Hartford, chairman; Paul M. Davis, Jas. E. Caldwell, and E. A. Lindsey, all of Nashville, and T. A. Embry of Winchester, Tenn. There are 23 employees in addition to the officers. The territory assigned to this branch is that part of the State of Tennessee which is located in the Sixth Federal Reserve District, with the exception of the city of Chattanooga. The plan of operation of this branch is identical with that existing at Birmingham and Jacksonville branches. The accounts of all member banks in its zone are carried on the books of the parent bank, and all entries relating to transactions consummated are handled promptly over private telegraph wires. 392 ANNUAL KEPORT OF THE FEDERAL KESEKVIS BOARD. INTERNAL ORGANIZATION. At the January, 1919, meeting of the directors of the Federal Reserve Bank of Atlanta it was announced that Mr. M. B. Wellborn had been redesignated as chairman of the board and Federal Reserve agent for the year 1919, and that Mr. J. M. Slattery had been reappointed assistant Federal Reserve agent. At that meeting Mr. Jos'. A. McCord was reelected governor of the bank, together with the following officers: M. W. Bell, cashier; W. B. Roper, J. L. Campbell, W. R. Patterson, R. A. Sims, and Creed Taylor, assistant cashiers, and Ward Albertson, general auditor. At the February meeting of the board of directors Mr. Jos. A. McCord resigned his position as governor of the bank, and Mr. M. B. Wellborn resigned as class C director and chairman of the board and Federal Reserve agent. Mr. McCord was then appointed by the Federal Reserve Board as class C director for the term ending December 31, 1920, and was designated as chairman of the board and Federal Reserve agent for the year 1919. Mr. M. B. Wellborn was then elected governor of the bank, Mr. L. C. Adelson, deputy governor, Mr. J. M. Slattery, secretary, and Mr. H. F. Conniff, assistant cashier. Mr. Ward Albertson was appointed assistant Federal Reserve agent and Mr. Creed Taylor was elected auditor of the bank. At the November, 1919, meeting of the directors, Mr. Jas. E. Zunts, of New Orleans, resigned as class B director of the Federal Reserve Bank of Atlanta, and Mr. Leon C. Simon, of New Orleans, was elected to fill the unexpired term caused by Mr. Zunts's resignation, said term expiring December 31, 1920. Mr. W. H. Hartford, of Nashville, Tenn., was reelected a class B director for the three-year term ending December 31, 1922, and Mr. F. W. Foote, of Hattiesburg, Miss., class A director, having declined to stand for reelection, Mr. Oscar Newton, of Jackson, Miss., was elected for the three-year term ending December 31, 1922. Mr. W. H. Rettig, of Birmingham, Ala., was reappointed by the Federal Reserve Board as class C director for the three-year term ending December 31, 1922. At the meeting of the board of directors January 10, 1919, on petition of the banks in the city of Savannah, Ga., and upon approval of the Federal Reserve Board, the directors voted to establish an agency at Savannah, largely to meet the needs of that cotton port. On petition of the banks in Tennessee, especially in the city of Nashville, the board of directors at their meeting on August 8, 1919, voted to establish a branch at Nashville, Tenn., which was approved by the Federal Reserve Board; and in compliance therewith the branch was opened at Nashville on October 21, 1919. Owing largely to the establishment of the branch bank at Nashville, the number of employees was increased to 386, as compared with 317 in 1918. During the year the bank and branches have strengthened and improved their internal organization and have reached a much higher degree of efficiency. CLEARINGS AND COLLECTIONS. Comparing 1919 figures with those in the 1918 annual report we show a gain in the number of items handled of 91.4 per cent, and in the amount of money of 54.2 per cent. The direct-sending member DISTRICT NO. 6—ATLANTA. 393 banks have increased their volume of sendings to other Federal Reserve Banks and their branches 75 per cent. Cost per item for 1919 was $0.0119 and per thousand dollars $0.0307, against $0.0097 per item and $0.0228 per thousand dollars for 1918. This shows an increase in the cost per item over 1918 of $0.0022 and per thousand dollars of $0.0079. There has been a marked improvement in the handling of transit operations during 1919, due to better organization and the adoption of better methods. During the year we added to our par list 106 banks. We now have in the Sixth District 783 banks remitting at par. The number of items handled by the collection department has increased to a very considerable extent during the year 1919. We handle all items forwarded to us as collection items by other Federal Reserve Banks and their branches, and also items from member banks located within this district. The greater volume of items handled consists of notes, drafts, and bill-of-lading drafts. During the year 1919 the collection department handled 21,821 items, amounting to $52,996,504.47. GOLD SETTLEMENT FUND. The year 1919 was the first full year's operation under the daily settlement basis. With the volume of transactions among Federal Reserve Banks now being handled, particularly in connection with special transfers of funds for member banks, for the Treasurer of the United States, and for rediscounts between Federal Reserve Banks, the account has been very active, and it would be well nigh impossible to conduct the business through the Federal Reserve Banks without this fund. The handling of this account is greatly facilitated by the private-wire system, connecting all Federal Reserve Banks, their branches, and the Federal Reserve Board. On April 1, 1919, the New Orleans branch was permitted to begin settling direct in common with a number of other branches of Federal Reserve Banks. FOREIGN ACCOUNTS. Foreign Government credits.—The account of foreign Government credits was opened July 17 under participation with other Federal Reserve Banks, through the Federal Reserve Bank of New York, and has been maintained with little fluctuation since that date. The daily average balance of this account has been $2,761,701.19. The maximum balance was held when the account was opened on July 17, of $3,333,408.37. The minimum balance was on October 31, when it stood at $2,602,586.02. The average difference between the resource item of gold with foreign agencies and the liability item of foreign Government credits has been $416,156.07. These resource amounts have been available as cash and part of the bank's cash reserve. Gold with foreign agencies.'—A balance in this account was continued from 1918, and was closed out on April 2. It was opened again in September and maintained throughout the balance of the year. The daily average balance during the period of activity was $2,345,545.12; the minimum balance during; the period of activity 394 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. was from January 1 daily until April 2, when it was closed. The maximum of $5,270,626.78 was on November 13. The amount carried over from last year was dormant until it was closed on April 2, but since reopening the account in September it has been very active, increasing and decreasing in varying amounts almost weekly. BANKING QUARTERS—NEW BUILDINGS. The Federal Reserve Bank of Atlanta has under construction in Atlanta additions to the permanent quarters which will nearly treble the present floor space. The total estimated cost of the new building under construction amounts to $205,000. These additions will be completed in May, 1920. The construction follows out the same line of architecture as the original building. The material used is also the same, viz, reinforced concrete, with granite exterior. The new building will be fireproof and thoroughly modern in every way. In June, 1919, the board of directors authorized the purchase of a building known as the Commercial National Bank, New Orleans, La., for permanent quarters of the New Orleans branch. This building is situated in the block bounded by Carondelet, Common, Baronne, and Canal Streets. The price paid for the property was $236,250. This property is centrally located and well adapted for the purpose intended, and it is thought that these quarters will be entirely adequate for the New Orleans branch for a number of years. TREASURER'S GENERAL ACCOUNT. This account has been very active. The number and amount of warrants and coupons redeemed have been large. The monthly average of warrants redeemed was 104,224 items, amounting to $28,523,435.67, and the monthly average of coupons redeemed was 274,960 items, amounting to $1,097,650.33. Since the earlier months of the year there has been a steady decline in the number and amount of warrants redeemed, except for the months of September and October, when there was a slight increase. GENERAL BUSINESS AND BANKING CONDITIONS. The month of December brings to a close a year of remarkable commercial activity and expansion in the district. The transition from a war footing to a peace basis, while it has been marked, has taken place with comparatively little disturbance. There was some uncertainty in the early months of the year, occasioned by the cancellation of Government contracts and orders, but the attention of business was at once turned to the general trade, and for several months now manufacturing plants and jobbers have experienced difficulty in filling orders as rapidly as received. A slight decline in prices in the early months of the year almost immediately gave way to a steady and continuous advance, with the result that prices of practically all staples have for months been higher than at any time during the war. An investigation during the spring months developed the fact that sales by retail stores were for cash in a much larger percentage of instances than heretofore, and that the proportion of credit sales had decreased relatively. DISTRICT NO. 6—ATLANTA. 395 While peace has not officially been declared, there has been a good foreign demand for our raw and manufactured products, as well as foodstuffs, until more recently when the decline in foreign exchange has had the effect of somewhat curtailing this demand. Nevertheless it has had the effect of reducing our supplies and correspondingly increasing prices, with the result that very few articles have escaped the general rise in prices. The price of cotton, the principal staple product of the district, has increased during the year from around 27 or 28 cents to around 40 cents. A large proportion of the crop was held for 35 cents, and much cotton was held by the producer uptil the price reached 40 cents. Diversification in farming has continued to an encouraging extent, and a large increase is shown in the production of live stock in all the States comprising the district. A larger proportion of farmers are raising blooded cattle, hogs, and sheep, and the average character of the stock shows a steady improvement in quality. The larger towns and cities of the district have experienced a serious shortage of houses, both for renting purposes and for sale to homeseekers, throughout the year. This has been relieved to some extent by extensive building operations exceeding those of any previous year. The lumber market has consequently been very active throughout the year, and prices have steadily advanced, production being reported as below normal. The year closes with the greatest demand for lumber and the highest prices ever known, and the outlook is for still higher prices next year. All lines of business have had to cope with the problem of shortage and inefficiency of labor. Upon the cancellation by the Government of its war orders, a few manufacturing plants closed for a short time only, others operated on a part-time basis, pending resumption of business with the general trade. With this exception, however, there has been little or no unemployment, and a shortage has existed in practically all lines during the year. The shortage of farm labor has been a serious handicap, especially during the harvesting season, when, in some cases, fields of cotton and other crops were abandoned because of lack of farm help. The steel and coal strikes, while serious in their effect, have not affected the district greatly from a standpoint of production, for the reason that in Alabama steel plants and coal mines there is a larger percentage of nonunion workers than union men. The production of pig iron has increased, and all industrial plants are operating to full capacity. Bank clearings at the principal cities of the district have consistently shown increases from month to month over those for the same periods of 1918, and collection conditions have been reported as good throughout the year. It is undoubtedly true that the average individual has had more money this year than ever before, and while savings deposits have been increased, the individual has spent money unrestrainedly, and for more expensive things, than ever before. The business in automobiles, jewelry, fine furs, and expensive clothing exceeds that of any previous year. 178983—20 26 E X H I B I T A.—Movement of earning assets. CO Bills discounted. Secured by Government war obligations. Date. Member banks' collateral notes. All other. Otherwise secured and unsecured. Member banks' collateral notes. All other. Per cent Bills pursecured chased in by war open market obligations (1+2-t-l to 4, incl.). United States bonds owned. United States certificates Municipal of indebted- warrants. ness. 10 5 Jan. 3. 10. 17. 24. 31. Feb. 7. 14 21. 28. Mar. 7. 14. 21. 28. Apr. 4. 11. 18. 25. May 2. 9. 16. 23. 30. June 6. 13. 20. 27. July 3. 11. 18. 25. Aug. 1. 8. 15. 22. 29. $44,470,186 37,902,915 35,266,915 46,914,871 42,548,471 45,531,650 52,263,150 53,758,550 56,923,550 58,930,200 59,667,000 60,934,250 60,731,150 62,114,400 63,293,900 65,047,800 67,792,950 69,038,400 68,503,850 70,046,400 66,390,600 66,034,325 60,198,625 69,019,100 68,193,250 67,313,409 63,145,179 63,349,574 64,641,618 74,700,118 72,038,518 75,795,118 71,950,104 74,805,350 78,635,155 $18,280,983 7,849,007 6,749,042 4.343,832 5,899,206 5,971,178 6,279,095 6,172,001 5,884,934 5,792,113 5,238,198 4,489,221 4,524,973 4,721,127 4,658,309 3,927,511 2,889,561 3,734,103 3,737,598 3,970,854 4,518,078 4,214,740 4,447,502 4,103,286 4,212,012 4,505,625 5,049,251 4,640,991 4,438,278 4,215,447 3,739,908 3,734,692 3,273,296 3,361,962 3,829,862 $1,248,713 $18,027,026 29,717,002 1,014,000 28,839,922 25,300 26,105,837 662,800 737,500 ' 22,020,528 19,270,209 160,000 17,768,724 160,000 14,489,677 5,000 12,746,658 5,000 11,904,702 12,295,663 22,000 12,599,238 22,000 14,006,850 10,000 13,506,178 10,000 12,785,306 20,000 10,935,856 40,000 11,453,669 20,000 11,415,847 20,000 11,660,643 20,000 11,615,590 20,000 12,854,523 625,060 12,710,221 672,560 12,240,267 934,288 12,841,368 283,727 14,825,716 470,384 15,910,526 860,384 13,471,933 692,884 12,930,923 616,346 10,882,631 1,024,102 11,475,124 1,104,366 11,759,129 681,610 11,327,220 320,990 11,852,099 359,990 13,014,686 359,490 14,374,557 517,149 Per cent. 63.6 59.8 59.3 64.7 67.9 72.6 76.6 80.0 83.1 84.5 84.0 83.8 82.3 83.2 84.1 86.3 86.0 86.4 86.1 86.4 84.0 84.7 83.1 84.8 82.6 81.1 82.8 83.4 85.3 80.3 85.9 87.2 83.3 85.4 84.7 Total earning $11,860,337 11,920,209 11,328,831 11,106,651 10,377,277 9,619,390 8,550,318 8,008,552 7,603,362 7,503,659 7,398,219 7,223,225 6,527,441 6,166,338 5,740,591 5,576,642 5,713,021 6,033,768 6,104,098 5,640,676 5,151,063 5,296,276 5,382,340 6,344,887 7,059,036 7,173,370 6,588,860 6,725,674 6,885,339 6,991,798 6,568,372 6,034,737 5,432,071 4,860,862 4,165,137 $542,550 542,450 542,450 536,900 528,575 528,250 378,450 377,900 377,800 377,750 377,700 377,650 377,600 377,350 377,250 377,150 377,000 376,950 376,850 384,050 383,900 383,900 383,350 383,150 383,050 382,950 382,650 382,650 382,650 382,650 382,250 382,150 382,000 381,200 380,900 $6,066,000 6,566,000 6,521,000 6,521,000 6,521,000 6,964,000 6,964,000 6,964,000 7,464,000 7,464,000 7,964,000 8,474,000 8,474,000 8,474,000 8,474,000 8,474,000 8,974,000 8,974,000 9,024,000 9,634,000 9,509,000 9,584,000 10,549,000 10,599,000 10,599,000 10,599,000 10,575,000 10,575,000. 10,479,000 10,479,000 10,479,000 10,979,000 11,479,000 11,979,000 12,479,000 $13,000 13,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 3,000 3,000 $100,508,797 95,524,583 89,277,460 96,195,892 88,636,559 88,048,678 92,367,737 89,779,682 91,009,305 91,976,425 92,966,780 94,123,585 94,655,014 95,372,394 95,349,357 94,378,961 97,220,202 99,593,069 99,427,040 101,311,572 99,432,225 98,896,023 94,135,374 103,574,520 105,742,450 106,745,266 99,905,759 99,221,159 98,733,621 109,348,504 105,648,788 108,573,908 104,728,560 108,762,551 114,381,760 I o 1-3 i I Sept. 5. 12. 19. 26. Oct. 3.. 10.. 17.. 24.. 31.. Nov. 7. 14. 21. 28. Dec. 5.. 12.. 19.. 26.. 73,675,055 71,502,305 69,589,705 66,087,555 68,370,463 66,772,463 6,5,891,203 66,548,925 64,976,555 64,582,616 63,016,150 64,573,725 61,593,680 60,457,465 58,757,665 57,101,705 56,816,660 3,960,098 4,443,877 5,281,942 5,220,206 5,296,615 5,411,597 5,638,805 4,624,904 5,158,365 4,964,856 5,149,932 4,320,803 4,036,237 5,039,436 5,120,716 4,740,788 4,562,118 537,149 320,000 368,500 1,713,500 2,376,000 1,030,000 410,270 662,230 560,000 415,000 940,000 900,000 390,000 595,000 537,500 502,500 570,000 15,228,513 19,888,226 24,144,477 25,215,191 28,734,065 30,761,564 35,512,550 33,326,121 36,491,231 35,955,361 36,750,783 37,272,017 36,151,102 34,612,690 31,852,975 30,669,861 28,273,332 83.1 79.0 75.3 72.6 70.3 69.4 66.5 67.7 65.4 65.7 64.4 64.3 64.2 65.0 66.4 66.5 68.0 I 3,923,463 3,903,329 3,736,392 5,099,537 5,981,664 6,924,434 8,564,185 10,281,473 12,209,289 12,871,524 12,519,876 12,428,328 11,911,998 11,849,406 12,186,638 17,128,584 16,230,907 380,800 380,750 380,450 380,400 380,300 i 380,300 ] i 380,000 380,000 379,950 379,700 379,700 379,700 379,700 379,700 379,650 379,550 379,300 12,979,000 12,964,000 13,464,000 13,464,000 13,464,000 13,464,000 14,464,000 14,464,000 14,564,000 15,164,000 15,665,000 15,665,000 15,665,000 15,665,000 15,665,000 15,665,846 15,665,846 110,684,079 113,402,489 116,965,468 117, 180,391 124,603,108 124, 744,359 130,861,015 130, 287,654 134,339,391 134,333,059 134,421,442 135,539,574 130, 127,718 128,598,698 124,500,145 126 188,835 122,498,164 i 3 O T CO CD 398 ANNUAL BEPOKT OF THE FEDERAL RESERVE BOARD. FEDERALRESERVEBANK OF ATLANTA MOVEMENT OF EARNING ASSETS DURING CALENDAR YEAR 1919. 25 PIP HP 0 UNITEDSTATES SECURITIES. 25 i • 25 I 25 O 0 O ACCEPTANCES BOUGHT. no CO 80 60 40 20 0 so 60 40 20 PERCEtiTAGEOFWAR PAPER TO TOTALDISCOURTS. I2S TOTAL BILLS DISCOUHTED, D;A/1PfVARFAP£R;iV: 399 DISTRICT NO. 6—ATLANTA. I rEDERALRESERVEBANKOFATLANTA NET DEPOSIT LIABILITY. F.R.NOTECIRCULATION CASHRESERVES A11PRESERVE RATI0J9I9. is 70 60 SO 40 30 20 10 SO 40 30 20 10 0 RESERVE RATIO, (PERCEKTA6E0FC+L ) . P£P05!TAtiDmtlOTnLiAB!UmS/LtANP TOTAL RESERnS/' 400 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. E X H I B I T B.—Movement of cash reserves, net deposits, Federal Reserve note and the reserve percentage. liabilities, 3 Date. Jan. 3 10 17 24 31 Feb. 7 14 20 28 Mar. 7 14 21 28 Apr. 4 11 18 25 May 2 9.. 16 23 29 June 6 13 20 1 27 ! July 3 1 11 18 25 Aug. 1 8 15 i 22 29 Sept. 5 12 19 26 Oct. 3 10 1U . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 24 i 31 Nov. 7 14 21 28 Dec. 5 12 19 26. Total cash reserves. Federal reserve notes in actual circulation. (2+3). Reserve percentage (1-5-4). $62,890,697 $33,826,754 $119,640,310 i $153,467,064 65,575,788 33,193,465 118,136,519 | 151,329,984 64,944,812 143,932,050 117,122,615 26,809,435 41,971,460 112,741,260 j 154,712,720 68,847,419 33,117,510 111,391,190 I 144.508.700 ! 66,179,618 113,065,760 j 145,654,513 32,588,753 68,584,332 110,320,025 i 152,309,581 41,989,556 70,875,328 113,009,070 1 154,056,715 74,867,408 ! 41,047,645 110,785,210 ! 152,532,611 73,076,836 ! 41,747,401 111,822,670 : 156.495,701 44,673,031 76,388,642 41,879,477 110,087,015 ; 151,066,492 71,077,919 33,646,524 112,269,070 ! 145,915,594 63,976,906 34,667,854 115,974,805 : 150,642,659 68,065,223 35,667,648 115,172,665 j 150,840,313 68,115,593 114,077,620 I 155,952,291 41,874,671 73,484,657 115,215,430 I 156,939,274 41,723,844 75,494,364 115,332,840 | 153,747,731 38,414,891 69,771,578 38,127,117 115,538,655 ! 153,665,772 67,596,166 115,854,035 | 156,422,861 40,568,826 70,595,807 45,449,774 113,171,485 ! 158,621,259 71,185,830 43,168,752 112,263,640 I 155,432,392 70,028,813 113,349,880 j 161,182,413 47,832,533 74,860,974 36,780,769 115,569,015 ! 152,349,784 72,523,030 115,128,275 i 164,902,405 49,774,130 75,954,836 42,223,567 115,995,080 ! 158,218,647 67,307,530 44,920,847 115,662,010 j1 160,582,857 68,852,891 117,319,380 162,529,692 45,210,312 77,222,246 47,112,054 118,119,130 165,231,184 80,712,018 45,706,625 119,318,040 165,024,665 81,225,766 116,835,610 170,318,671 53,483,061 76,023,667 115,933,485 43,042,585 158,976,070 68,493,745 47,324,558 116,613,295 163,937,853 71,035,926 46,489,517 115,742,490 162,232, 007 73,547,547 112,991,050 161,503,992 48,512,942 69,427,630 48,652,592 113,631,550 162,284,142 65,085,570 114,806,985 43,736,513 158,543,498 65,504,156 116,366,880 162,125,993 45,759,113 65,708,391 45,832,494 117,962,935 163,795,429 65,270,724 44,749,912 121,012,470 165,762,382 67,198,767 128,383,830 179,531,275 51,147,445 73,786,993 46,925,737 133,448,505 180,374,242 74,505,921 fXm L»UJ, C^lJL 51,881,110 137,215,255 189,096,365 77,010,222 140,943,075 189,059,326 48,116,251 78,720,356 50,923,165 141,976,333 192,899,498 78,521,267 50,080,548 150,378,970 200,459,518 86,948,763 151,376,310 201,449,621 50,073,311 87,565,621 53,815,772 149,811,480 203,627,252 89,442,550 57,493,819 148,566,960 206,060,779 97,348,393 55,016,339 150,749,279 205,765,618 98,629,187 53,152,806 150,830,590 203,983,396 101,017,764 54,720,409 153,919,980 104,430,441 54,924,094 156,599,055 211,523,149 I 111,675,788 40.9 43.3 45.1 44.5 45.7 47.0 46.5 48.6 47.9 48.8 46.8 43.8 45.1 45.1 47.1 48.1 45.3 43.9 45.1 44.9 45.0 46.4 47.6 46.0 42.5 42.6 47.5 48.8 49.2 44.6 43.0 43.3 45.3 42.6 40.1 41.3 40.5 39.8 40.5 41.0 41.3 40.6 41.6 40.7 43.3 43.4 43.9 47.2 47.9 49.5 50.1 52.8 401 DISTRICT NO. 6—ATLANTA. EXHIBIT G.—Comparative balance sheet of Federal Reserve Bank of Atlanta, including branches. Dec. 31,1919. Dec. 31,1918. RESOURCES. Reserves: Goldrexemption fund—Federal Reserve notes Gold with Federal Reserve agent Gold settlement fund Gold bullion and coin Gold certificates (including clearing-house certificates) Gold with foreign agencies $7,940,425.13 63.503,220.00 19,333,518.51 1,930,767.62 $6,957,760.00 42,179,185.00 6,302,193.45 1,900,488.42 6,482,040.00 4,727,527.61 6,086,890.00 174,866.23 Total gold reserves. Legal-tender notes. Silver certificates... Silver coin 103,917,498.87 63,601,383.10 Total cash reserves. Nickels and cents 5 percent fund against Federal Reserve notes. Overdrafts 104,908,210.17 1 163,325.00 117,580.00 I 709,806.30 | Total. Deductions from gross deposits: National-bank notes Bank notes, other Federal Reserve Banks— Federalreservenotes—Other Federal Reserve Banks Unassorted currency Transit items Checks and other cash items Exchanges for clearing house Otheritems Branches Total Less: Interest accrued on United States securities 6,170.35 878,550.00 10,049.31 1,336.40 310,690.00 894,769.66 312,026.40 367,700.00 449,700.00 4,119,829.00 1,278,455.00 7,181,806.00 36.319,680.10 67,064.23 2,602,513.91 Total deductions. Earning assets: Member banks' collateral notes, Government secured All other, Government secured Member banks' collateral notes, otherwise secured All other, otherwise secured Bills purchased Victory notes United States bonds to secure circulation Other United States bonds Certificates of indebtedness to secure circulation Other United States certificates of indebtedness War-savings certificates Municipal warrants Par value of earning assets Deduct— Unearned discount Dep. reserve United States bonds. 36, 018, 589. 11 61,832,680.00 4,558,955.09 47,626, 800.00 635,000.00 26,025,232.73 16.639,000.16 ' 3,900.00 261,600.00 113,700.00 36, 408, 710. ,93 12, 514, 685. 61 261,600.00 292,150.00 15,664,000.00 5,964,000.00 1,000.00 846.00 102,000.00 125,735,913.98 103,182,946.54 13,666.66 $259,673.32 4,686.85 $228,225.46 830.70 264,360.17 229,056.16 135,903.92 24,961.80 204,094.36 125,607,457.73 102,978,852.18 121,786.25 .47 9,269.68 463,301.88 456,208.21 594,358.28 Total resources. 16,399,909.62 122,324.66 2,876,114.04 9,981,436.18 2,518,975.61 48,266,919.24 128,456.25 Liquid value earning assets. Miscellaneous assets: War-loan expense War Finance Corporation. Deferred charges Bank premises 165,009.00 55,544.00 16,690.50 280,271,715.08 2,'957.3'i 217,000.00 676,165.52 203,824,259.81 402 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. EXHIBIT C.—Comparative balance sheet of Federal Reserve Bank of Atlanta, including branches—Continued. Dec. 31,1919. Dec. 31,1918. LIABILITIES. Federal Reserve notes: Outstanding... Less: Held by bank and branches Forwarded for redemption $160 107 820.00 $4,108,635 488,250 A In actual circulation Federal Reserve bank notes secured by Government obligations: Outstanding... Less: Held by bank and branches In circulation, net liability Deposits: United States Treasurer—general account Members—reserve account Foreign government credits Nonmembers clearing account Cashier's checks Deferred availability itemsGold settlement fund—suspense Government transit items All other transit items Gross deposits Miscellaneous liabilities: Reserved for taxes Reserved for expense Difference account Capital, surplus, and net earnings: CapitalPaid in by members Paid in by applicants for membership Total capital Surplus fund Total liabilities rnc CQC $123 620 285.00 $2,786,200 161,655 on 155,510,935.00 120,672,430.00 15 777,600.00 216,300.00 6 085 600.00 269,000.00 15,561,300.00 5,816,600.00 2,706,991.38 58,388,305.76 2,602,586.02 12,498.22 163,501.14 2,839,711.85 46,222,851.15 40,931.30 173,956.21 5,862,338.16 998,183.13 30,270,446.54 16,335,014.92 101,004,850.35 72,585,923.58 25,583.24 45,846.49 6,973,458.15 47,572.19 384.04 71,429.73 47,956.23 3,425,650.00 2,550.00 3,191,350.00 3,428,200.00 3,191,350.00 4,695,000.00 1,510,000.00 280,271,715.08 203,824,259.81 DISTRICT NO. 7.—CHICAGO. W. A. HEATH, Chairman and Federal Reserve Agent. In the first year of readjustment from a war to a peace footing, the operations of the Federal Reserve Bank of Chicago made a remarkable showing when measured by service rendered to the financial community and the Government. Features of operation, however, clearly indicate that such readjustment is a slow and hesitating process, especially in a district largely agricultural. While world-wide conditions are closely related with those of the Middle West, it is not easy to discover any direct reflection of them in the attitude of the people of this section as indicated by their disposition to indulge in extravagant living, to disregard the necessity of thrift, the imperative need for increased production, and the conservation of credit. The Middle West is a great producing section, largely agricultural but with manufacturing centers scattered all through it, all contributing to feed and clothe Europe and to supply her with raw materials and finished products. Necessarily the problems of production, distribution, and credit present themselves, and these involve as factors seasons of growth as well as harvest and transportation. The record of the Federal Reserve Bank of Chicago for 1919 indicates in some measure the manner in which these various problems have been or are being met and solved. In reviewing the operations of the Federal Reserve Bank of Chicago, attention is called to the grand total of the balance sheet at the close of 1919, showing total resources of $974,270,255, or more than $197,000,000 greater than the total resources at the close of 1918, $573,364,510 greater than at the close of 1917, and 8.2 times the total resources at the end of December just preceding our participation in the war. No other single total so well expresses the magnitude of the service carried through the most critical year which has been lived (possibly excepting the period of actual warfare) in longer than a half century. It has been the endeavor to render the greatest possible service to the business community, to the end that the liquidating process necessary to bring the country back from a war footing to a peace basis may be accomplished with the least possible disturbance to business interests and to the country at large. With this in mind, loans to and rediscounts for member banks have been carefully watched and the effort has been made to keep in touch with the general credit situation throughout the district as indicated by loans and discounts as shown in the reports of condition by the commercial banks. The Federal Reserve Bank of Chicago, in 1919, was able not only to supply the legitimate needs of its own district but to make large advances to other Federal Reserve Banks not so fortunately situated. 403 404 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. It also assisted materially in financing the Treasury, through the flotation of more than its full quota of Victory bonds, the banks of the district subscribing 18 per cent of the Victory loan, purchasing 14 per cent of the total loan anticipation certificates of indebtedness, and absorbing 13 per cent of the total tax anticipation certificates subscribed in the country. The transition from a war toward a peace footing has been attended so far with little business disturbance. In the early part of the year the sudden lessening of the demand for war materials and the cancellation of war contracts by the Government, together with the slowness of payment on these contracts, in consequence of the magnitude of the task, involved the use of such a considerable amount of credit as to offset, in a measure, the steady liquidation of war obligations. All through the year, however, there has been in evidence resistance to attempts to readjust prices and wages from a war-time level to a prewar normal, which necessarily finds its reflection to some extent in the loan account at the banks. Higher wages and high prices of materials call for the use of more money and credit in the conduct of business. The statistical record of operations of the Federal Reserve Bank of Chicago reflects the effect of high prices, low production, speculation, and extravagance existing in the Seventh Federal Reserve District. The strain upon the banking system, due to conditions which to some extent were controlled during the war, has been increased with the relaxation from war-time economies and conservation. There is little in the figures of the year 1919 which gives hope for an immediate return to normal conditions until production begins to overtake consumption and savings are accumulated to take the place of wealth lost by waste and extravagance, and to increase the available supply of capital of which the world is so greatly in need. FINANCIAL RESULTS OF OPERATION. The earnings of the Federal Reserve Bank of Chicago for the year 1919 aggregated $12,012,077, while the total expenses of the bank lor the year 1919 aggregated $2,548,324 compared with $1,495,002 the previous year. From the net earnings of 1919, there was charged off $820,000 as the estimated value of buildings to be razed on the property purchased at the end of 1918 as the site for the future home of the Federal Reserve Bank of Chicago. The balance sheet as of December 31, 1919, shows $423,823,509 total earning assets, compared with $247,091,416 at the close of the previous year, $125,490,000 in 1917, and $26,475,000 at the end of 1916. Total resources shown were $974,270,255 on December 31 last, compared with $777,187,612 at the end of 1918, $401,905,000 in 1917, and $118,790,000 at the close of 1916. The capital account at the close of 1919 showed $12,347,150 paid in, compared with $11,185,050 rpaid in at the end of 1918. The average capital paid in for the } ear was $11,685,000, compared with $10,087,800 for 1918. The surplus account at the close of 1919 was $14,291,642. Total Government deposits on December 31, 1919, were $350,003 compared with $6,566,290 at the close of the previous year, $3,052,000 at the close of 1917, and $2,045,000 at the close of 1916. The "total DISTRICT NO. 1—CHICAGO. 405 due to member banks—reserve" at the close of 1919 was $257,978,903, against $230,604,383 at the end of the previous year, $169,174,000 at the close of 1917, and $95,390,000 at the close of 1916. The balance sheet also showed $500,138,675 Federal Reserve notes in actual circulation at the end of 1919, against $428,820,115 at the close of the previous year. DISCOUNT OPERATIONS IN 1919. The total earning assets standing at $259,000,000 at the beginning of 1919 was composed of $133,000,000 notes collateraled by United States Government securities, $48,000,000 other discounted paper, $58,000,000 open market bills, and $20,000,000 United States securities owned. On December 26 the total earning assets stood at $427,000,000, composed of $147,000,000 notes collateraled by United States Government securities, $128,000,000 other discounted paper, $108,000,000 open market bills, and $44,000,000 United States securities owned. In the early figures Government securities appeared as collateral in 51 per cent of total earning assets, while on December 26, the high point reached by "total earning assets," this percentage was 34 per cent. Leaving out of consideration investments, which show a steady increase from $20,000,000 at the beginning of the year to $44,000,000 at the end, the total bills discounted and bought consisted principally of notes secured by Government obligations in the early months, the percentages showing 55 per cent at the low and 84 per cent on May 16, the high point. From this date on this proportion diminished and at the end of the year had declined to 38 per cent. The removal of the preferential that had hitherto existed upon Government obligations as collateral, accounts for the failure of notes thus secured to play an important part in the tremendous advance sustained in loans during the last half of the year, particularly in October, November, and December. On July 3, the total bills discounted and bought amounted to $284,000,000, partly made up of $208,000,000 paper secured by United States war obligations. On December 26, total bills discounted and bought amounted to $383,000,000, of which $147,000,000 was paper secured by United States war obligations. This involved a decline in percentage of from 73 to 38 during the last half of 1919. During the year 1919 there were approved 28,944 applications for rediscount for 951 banks, which compares with 22,864 applications approved for 850 banks in 1918. Bankers' acceptances aggregating $387,489,767 were purchased in the open market and from other Federal Reserve Banks at rates running from 4 to 5J per cent. The number of acceptors represented in these acceptances was 214. The total amount of advances to other Federal Reserve Banks through the rediscount of their bills during the year 1919 aggregated $1,323,338,000. This was distributed as follows: Atlanta Boston Dallas Philadelphia Richmond Total $72,190, 000 10, 028, 000 370, 975, 000 575, 008, 000 300,137, 000 1, 328, 338, 000 406 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. DEVELOPMENT OF THE TRADE ACCEPTANCE MARKET. During the year 1919 the Federal Reserve Bank of Chicago made an extensive canvass through its member banks to determine the development of the trade acceptance movement in the Seventh District. The barks reported the volume of trade acceptances offered for discount, as follows: Many bills offered, 28 banks; few bills offered, 230 banks; no bills offered, 581 banks. As to the rate of discount accorded trade acceptances, 36 banks granted a preferential rate and 221 banks took the bills at their ordinary rate of discount. Among the replies received as to the progress of the movement, 75 banks reported gains, while 713 banks reported no progress. From another point of view the trade acceptance movement has a more favorable appearance, namely, the trade acceptances unpaid at maturity appear to be remarkably few, and the banks generally throughout the district express a preference for trade acceptances over the commercial notes in ordinary use. During 1919 the Federal Reserve Bank of Chicago rediscounted approximately $6,580,000 of trade acceptances, or about $2,450,000 less than during the previous year. OPEN MARKET FOR BANKERS* ACCEPTANCES. The open market for acceptances is gradually developing in the Seventh District. A number of large banks in the reserve cities and some of the small banks outside of reserve cities are purchasing bankers' acceptances. The Federal Reserve Bank is assisting in the development of an open market for bankers' acceptances by purchasing such acceptances with a 15-day option to the broker to repurchase. The attitude, however, has been to discourage direct offerings by member banks. LIQUIDATION OF WAR PAPER. It is problematical, of course, as to how long a time will be required to enable the banks of this district to clear up their war paper, but this is being urged and encouraged wherever possible without harassing business. RESTRICTIONS TO CHECK SPECULATION. The policy has been to give assistance to member banks to care for their legitimate and seasonal requirements and Government financing. In cases where banks have shown a disposition to borrow continuously and heavily, efforts have been made to obtain information as to current conditions and the reasons for this unusual demand. If it is found that a bank is borrowing from the Federal Reserve Bank in order to secure additional working capital, or for profit, the borrowing bank is requested to liquidate its obligations. DISTRICT NO. 7—CHICAGO. 407 TREND OF DEPOSITS. Net deposits opened the year at $211,000,000, gaming an advance of $85,000,000 to the high point of the year, $296,000,000 (July 18), before a recession set in which brought the figures back to practically the place at which the upward movement had started. The trend of deposits during the entire year was irregular and unusual, due to the artificial conditions produced by the consistently large borrowings of other Federal Reserve Banks. Commercial banking experience, that deposits grow with loans, was not followed in the Federal Reserve Bank of Chicago, due to the fact that the proceeds of these advances to other Federal Reserve Banks were not left on deposit as is the case when members borrow, but were transferred through the gold settlement fund to other Federal Reserve Banks. RESERVE POSITION CAREFULLY SAFEGUARDED. Demands upon the Federal Reserve Bank of Chicago, both from member banks and from other Federal Reserve Banks, were tremendous during 1919. From the highest point reached in the total net deposit and Federal Reserve note liability in 1918, which was $644,000,000 on Friday, December 6, this item steadily increased to $738,000,000 on December 26, using the weekly figures exclusively. On the date of this high record, cash reserves against net deposits and net circulation liability, stood at 50.6 per cent. Cash reserves against these two net liabilities for the entire year averaged 63.5 per cent, while the average for the first ten months of the year was 65.4. On three occasions during the first ten months the reserve percentage against net deposit and note liability fell below 60 per cent, namely, June 20—59.7 per cent, June 21—59.9 per cent, and June 30—58.5 per cent. The transfer of gold to other Federal Reserve Banks as proceeds of advances made to them for acceptances bought and notes and acceptances discounted in unusually large volume, resulted in a rather sharp and steady decline in reserve percentage beginning with the first week in November. The low point in the reserve percentage against net deposits and Federal Reserve note liability was reached December 29, when it touched 49.2 per cent. The low weekly reserve computed on Friday was 50.6 per cent. The percentage against this combined liability at the end of the year was 51.4 per cent. The average reserve by months in 1919 was: January February March April 68. 3 May 71.1 June 67.3 July 64. 4 I August. 64.8 62.2 63.2 63. 5 September October November December 64. 9 64. 4 55. 6 52. 4 GROWTH OF MEMBERSHIP. There were 44 State banks added to the membership roll of the Federal Reserve Bank of Chicago in 1919, while 6 State banks retired from membership, making a net increase for the year of 38 State banks. This class of membership stood at 326 banks on December 31, 1919. Of the 6 retiring banks, 3 became national banks. The 408 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. division of new members by States is Illinois, 5; Indiana ; 3; Iowa, 6; Michigan, 28; and Wisconsin, 2. There were 1,048 national bank members in the Seventh District December 31, 1919. The following tabulation gives the total State bank membership, according to States, in the Federal Reserve Bank of Chicago at the close of the year 1919: Dec. 31, 1919. National. Illinois Indiana.. Iowa Michigan Wisconsin ' Total State. D e c . 31, 1918 Total. National. State. Total. 319 194 354 76 105 61 22 80 139 24 380 216 434 215 129 316 194 354 74 107 57 19 77 113 22 373 213 431 187 129 1,048 326 1,374 1,045 288 1,333 FIDUCIARY POWERS. Applications of 41 national banks in this district for authority to exercise fiduciary powers under section 11 (k) of the Federal Reserve Act were approved by the Federal Reserve Board during 1919. There were 54 such applications divided among the States as follows: Illinois, 15; Indiana, 15; Iowa, 15; Michigan, 4; and Wisconsin, 5. Of these, 10 were applications for additional fiduciary powers. Banks having these powers now number 146. DEPARTMENT OF BANK EXAMINATIONS. Owing to the fact that national banks are under the jurisdiction of the Comptroller of the Currency and that State banks are now and will remain under the jurisdiction of the various State banking departments, growth of the department of examinations must of necessity be slow. While the department has made direct examinations of both national and State member banks, the field work has been confined largely to cooperative examinations in connection with representatives of State banking departments, and credit examinations of State banks in connection with their applications for membership. During the year meetings were held separately with each of the five State banking departments, with practically a full attendance of every member connected with each department. These meetings resulted in a better understanding of the various matters of mutual interest, and the visitors gained a better knowledge of the Federal Reserve System and the operations of the Federal Reserve Bank of Chicago. At the same time the officers of the Federal Reserve Bank gained a much better idea of the conditions which confront the operation of the various State banking departments. The relations existing between the banking departments represented in the Seventh District and our examining department are pleasant and cordial and promise cooperation to the fullest extent in increasing the efficiency of the work in which there is mutual interest. The plan has been to DISTRICT NO. 1—CHICAGO. 409 lay the foundation of the examining department along correct lines, which may be extended as demands are made upon it. STATE BANK RESERVES. The discrepancy existing between reserve percentage against deposits required by State banking laws and those obligatory under the Federal Reserve Act has been removed in the State of Iowa for Iowa State banks which become members of the Federal Reserve System. Thus two States in this district, Michigan and Iowa, have given recognition through their law-making bodies of the safety of smaller reserves for a bank which has the resources of a Federal Reserve Bank to draw upon in case of need. The attitude of banking departments in the three remaining States continues liberal toward the reserve percentages carried by banks under their jurisdiction which have become allied with the Federal Reserve System, but actual incorporation in their State laws of sections covering this point has not yet been accomplished. PART PLAYED IN GOVERNMENT FINANCING IN 1919. The Seventh Federal Reserve District was assigned a quota of $652,500,000 of the Victory loan, or more than 14 per cent of the total amount offered, $4,500,000,000. Total subscriptions were $772,046,550, 118 per cent of quota. Allotments made aggregated $694,330,000. There were 2,267,411 individual subscribers, with an average subscription of $340. To the fourth Liberty loan there were 4,300,312 subscribers, averaging $227 for each as compared with an average of $172 for 3,479,315 subscribers to the third loan. Payment on the fourth Liberty loan was completed in January. By the end of the year payments on the Victory loan had all been completed excepting three individual accounts totaling under $1,000, and deliveries of all notes had been made except approximately $5,000,000 registered notes which had yet to be received from the Treasury Department. Payments on the Victory Liberty loan were effected as follows: By cash, $212,516,011.45; by credit in war loan deposit account established by approved depositaries, $241,024,313.55; and by certificates of indebtedness, $240,789,000. The Liberty loan organization for the Seventh District functioned satisfactorily, and the result is a fitting tribute to those tireless workers who gave freely of their time and energy. During the year 1919 the banks of the Seventh Federal Reserve District purchased $1,001,727,000 " loan anticipation" certificates of indebtedness, 14 per cent of the total amount purchased by the banks of the entire country, and $605,818,500 tax anticipation certificates of indebtedness, 13 per cent of the total amount of tax anticipation certificates sold in the entire country. All of these certificates have matured or have been retired except $180,623,000 loan anticipation and $246,390,500 tax anticipation certificates. At the present time, therefore, 7 | per cent of the total banking resources of this district are invested in United States Treasury certificates of indebtedness. The organization by which these certificates have been distributed was built upon the county unit. Each of the 338 counties in the district is in charge of two prominent resident bankers, work closely with the director of Treasury certificate sales. Digitized forwho FRASER 410 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. DEPOSITS OF TREASURY FUNDS WITH BANKS IN 1919. The number of depositary banks increased during 1919 from 1,060 to 1,177. The maximum payment by credit to the war loan deposit account during the year was $143,062,704 on the occasion of the initial payment of the Victory Liberty loan. Total payments by credit upon the Victory Liberty loan were $242,055,211, more than one-third of the money required on this account. Payments for certificates of indebtedness purchased by banks during the year were made by credit to the amount of $1,021,000,000, which is 64 per cent of the certificates sold. Approved collateral held by custodians as security for deposits of Treasury funds reached a maximum on June 11, when the five custodians, one in each State, held a total of $231,061,870. On December 1 the minimum for the year was reached—$70,399,395. WAR SAVINGS—1919. The work of the Federal Reserve Bank of Chicago in the sale of war savings certificates and stamps during the year 1919 has been chiefly concerned with education. Until August 1 the war savings campaign was conducted on the State unit plan. Thereafter the five State organizations were molded into one district organization with headquarters in Chicago. Sales during the first nine months showed a steady decrease, but from October 1 sales showed a decided increase. During the months of October and November sales showed approximately 100 per cent increase over September sales. This increase is attributed to the sale of the new Treasury savings certificates. FEDERAL RESERVE NOTE ISSUE. The volume of the Federal Reserve notes of the Federal Reserve Bank of Chicago in circulation at the first of the year was $426,000,000, a figure reached after an expansion during 1918 of over $250,000,000. During the first half of 1919 this figure never exceeded $426,000,000. In fact, there were two rather substantial downward trends during this period. However, when pent-up buying power and the desire to employ it resulted in a tremendous advance in consumption, a great rise in commodity prices, and an increase in speculative operations, there was a correspondingly heavy demand for circulation media. From the end of July, during which month there was a reaction from the upward trend that developed at the end of June, the rise in the Federal Reserve note item was sharp and continuous until the end of the year. The net expansion for the year was $84,000,000, with Federal Reserve notes in actual circulation standing at $510,000,000 on December 26, 1919. (See Exhibit B and chart.) FEDERAL RESERVE BANK-NOTE ISSUE. On December 31, 1918, there were outstanding $18,525,800 in Federal Reserve bank notes. At the close of the year 1919 this item stood at $41,289,800. This expansion of more than $20,000,000 in DISTRICT NO. 7 CHICAGO. 411 denominations of principally $1 and $2 can be traced to the Pittman Act, to the increased demand for small bills, and to the policy of the Treasury in withholding silver certificates from circulation in order to use for minor coin the bullion resulting from the breaking up of standard silver dollars back of the silver certificates. At the close of the year there was $43,609,800 in United States securities on deposit with the United States Treasurer as security for outstanding Federal Reserve bank notes. POSITION OF COMMERCIAL BANKS. Condition of the commercial banks is fairly well reflected in the summary of the reports of 107 selected banks in this district as of December 26, 1919, which indicates that they were borrowing approximately 78 per cent of their reserves. They have borrowed $208,000,. 000, whereas their reserves both with Federal Reserve Bank and in vault were $265,000,000. Considering that vault cash is not legal reserve and that almost $78,000,000 of the above figure was represented by vault cash, it may be seen how heavily the banks are leaning on the Federal Reserve Bank of Chicago at this time. The interest rate on money for business bears a close relationship to the discount rate of the Federal Reserve Bank of Chicago and, with a 4f per cent rate on certificates of indebtedness, it is not thought that commercial paper will become any cheaper than 5^ per cent, at least for several months of the new year. Other factors which no doubt will keep money firm for the next few months are the continued strength of commercial and agricultural demand; the stagnation of agricultural credits that would have been liquidated with better shipping facilities; the large land settlements to be made in March—the aftermath of tremendous speculation in land; and, finally, the completion of the readjustment of war-time industries to a peace-time basis, though the past year has seen considerable progress in this direction. Meantime, there is a good market for commodities of all kinds and the danger of excessive stocks is reduced, owing to the rapidity of the turnover of merchandise, and the average merchant's belief that prices may commence to recede at any time. FEDERAL RESERVE CLEARING SYSTEM. The operations of the clearing system of the Federal Reserve Bank of Chicago continue to show a remarkable increase in volume. During the year 1919 the daily average of items handled by the transit department compared to the number handled in the same period of the previous year, showed an increase of 106 per cent. The number of items drawn on banks in Chicago increased 112 per cent, while the daily average of items drawn on banks outside of Chicago increased 121 per cent. There was an increase of 38 per cent in Government checks handled. The turnover in December averaged daily 29,462 Chicago items and 121,663 outside items, or a total of 151,125 which, with 7,223 Government checks, made a total average of 158,348. The 178983—20 27 412 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. largest volume in the history of the transit department was handled on December 15, 1919, when the business comprised 240,132 items, composed of 41,712 Chicago items, 191,405 items on banks outside of Chicago and 7,015 Government checks. There has been a marked increase in the number of banks on the par list of the Federal Reserve Bank of Chicago. At the close of business December 31, 1919, 5,271 banks out of a total of 5,564 in the Seventh District were on the par list. Illinois, Iowa, Indiana, and Michigan were 100 per cent par, all banks in Illinois and Iowa going on the par list November 1 and all in Indiana December 1, while Michigan reached the 100 per cent status December 31. The transit department inaugurated a merit system recently for the purpose of increasing the efficiency of the clerical force and this has brought gratifying results in reducing the number of errors in the sorting and listing of checks. LEASED WIRE SYSTEM. Owing to the volume of telegrams handled over the leased wire system during the past year, additional facilities have been acquired to the extent of approximately 2,500 miles, which makes the total mileage of the system 12,500. The Chicago-New York circuit was converted from a single wire to a full duplex, or two-way wire (doubling its capacity); branch banks were opened at Little Rock, Buffalo, Houston and Nashville, all being connected with their parent banks by leased wires; new wires were established between Chicago and Kansas City, also Richmond and Baltimore, to provide for increased business, which is being handled with great facility. TRANSFER OPERATIONS. The policy happily adopted in 1918 of promoting mail and telegraphic transfers of credit for the better mobilization of reserves, was continued throughout 1919. Uniform rates were maintained of 15 cents discount per day per thousand—say 5 | per cent per annum— for mail purchases and 1\ cents discount per day per thousand for mail sales. Telegraphic transfers were made without charge and member banks have been encouraged to avail themselves of this great privilege for the conservation of their reserves and the effective utilization of their cash resources in all positions. The year 1919 showed a gain of 31.8 per cent in the total of transfers purchased by mail and by wire, the total being $4,205,247,000, against $3,188,602,000. Sales of transfers by mail and wire made a total of $1,115,010,000 against $498,329,000, an increase of 123 per cent for the year 1919. Total transfer operations, buying and selling by wire and by mail, amounted to $5,320,257,000, against $3,686,931,000, an increase of 44.3 per cent. COLLECTION DEPARTMENT. The collection department of the Federal Reserve Bank of Chicago was established on July 1, 1917, and for the balance of the year, as well as 1918, member banks did not use the service which it provided DISTRICT NO. 7—CHICAGO. 413 to any considerable extent. Prior to July 1, 1918, a service charge of 10 cents per item was assessed, but, in order to add to services made available to member banks, this charge was waived thereafter* At the present time about 10 per cent of the member banks use our collection facilities, though country banks thus far have not shown much interest in the service. The following table will afford an idea of the volume of business handled in the department for the year 191.9: Received from— Federal Reserve Banks. Chicago banks Member banks, district No. 7, outside Chicago.. Discount department Total Items. Amounts. 31,209 4,789 13,245 9,117 $81,846,903 20,313,164 12,462,949 201,459,117 58,360 316,082,133 Figures for 1918 are not available in a form which would make a fair comparison, but with the daily increase in volume, future reports should be very interesting. Returns at par can be made for collections on points where there is a Federal Reserve