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SEVENTH ANNUAL REPORT
OF THE
FEDERAL RESERVE
BOARD
COVERING OPERATIONS
FOR THE YEAR 1920
WASHINGTON
GOVERNMENT PRINTING OFFICE
1921
TABLE OF CONTENTS.
Page,
PART I.—Report of the Federal Reserve Board, with exhibits
1-357
PART II.—Reports of Federal Reserve agents to the Federal Reserve Board. 359-596
PART III.—Recommendations of the Federal Advisory Council to the Federal
Reserve Board for year 1920
597-609
PART I.
T E X T OF R E P O R T :
Introductory review
Production i n 1920
Industry and prices
Readjustment, a world-wide process
Control and regulation of credit
Agricultural credits
Bank credit
Foreign trade
financing
Corporations formed under t h e Edge Act
State foreign banking corporations
Foreign branches of national banks
Foreign exchange
Exchange transactions with Soviet Russia
Relative position of American business and finance with t h a t of foreign
countries
Movement of principal assets and liabilities of all Federal Reserve Banks
during 1920
Movement of reserves and reserve ratio
Interbank purchases of acceptances and rediscount operations
Development of t h e acceptance market
The cancellation evil
Changes i n discount rates
Check clearing and collection
r
Gold settlement fund
Fiscal agency operations
Condition of member banks in leading cities
State bank membership
Earnings and expenses of t h e Federal Reserve Banks
Changes i n rates of earnings
Branches of Federal Reserve Banks and their operations
Building operations of Federal Reserve Banks
Amendments to t h e Federal Reserve Act
Law division of t h e Federal Reserve Board
Meetings of Federal Advisory Council
Conferences held b y t h e Federal Reserve Board
Board's organization, staff, and expenditures
in
1
4
6
10
11
15
18
19
23
26
27
27
34
35
40
46
47
50
53 *
57
63
70
72
78
84
87
90
92
93
97
99
101
101
101
IV
TABLE OF CONTENTS.
EXHIBITS.
DISCOUNT RATES:
No. 1. High and low in force during each year since organization of Federal Reserve Banks, by character of paper and maturities
104
FEDERAL RESERVE NOTES:
No. 2. Outstanding, held by each bank, and in actual circulation, also
gold and eligible paper pledged as collateral for outstanding
notes—Monthly figures during 1920 for each Federal Reserve
Bank
No. 3. Collateral (gold and eligible paper) pledged with Federal Reserve
Agents as security against notes, and amount and percentage of
gold available as reserve against notes in circulation—Weekly
figures during 1920 for all Federal Reserve Banks combined...
No. 4. Printed, shipped to each Federal Reserve Agent and to United
States subtreasuries since organization of banks, and on hand
in Washington on December 31, 1920, by denominations
No. 5. Issued by Federal Reserve Agents to each Federal Reserve Bank
and amounts retired by each Federal Reserve Agent, since
organization of banks, also amounts outstanding December 31,
1920, by denominations
No. 6. Issued and redeemed by each Federal Reserve Agent, by months
during 1920, with totals for 1919
No. 7. Mutilated notes of each Federal Reserve Bank received and destroyed by the Comptroller of the Currency since organization
of banks, by denominations
No. 8. Issued and redeemed by each Federal Reserve Agent during 1920
and 1919, with amounts outstanding as of December 31, for 1920,
1919, 1918, and 1917, by denominations
No. 9. Received from and returned to the comptroller for destruction,
and issued to and returned by each Federal Beserve Bank during 1920, also amounts outstanding at beginning and end of year,
by denominations, as reported by each Federal Reserve Agent.
No. 10. Accounts of each Federal Reserve Agent at close of business,
December 31, 1920
No. 11. Interdistrict movement during 1920, with totals for 1919, 1918,
and 1917
108
Ill
114
116
118
120
121
121
125
126
FEDERAL RESERVE BANK NOTES:
No. 12. Printed, issued, and redeemed by the Comptroller of the Currency
since organization of banks, also amounts outstanding and on
hand on December 31, 1920, by denominations and districts
No. 13. Issued by the Comptroller of the Currency to each Federal Reserve
Bank under the provisions of the Pittman Act up to and including December 31, 1920, by denominations and districts
128
131
CURRENCY RECEIPTS AND PAYMENTS:
No. 14. Received from and paid to member and nonmember banks by each
Federal Reserve Bank, by months during 1920, with totals for
1919
No. 15. Received from and paid to member and nonmember banks by each
Federal Reserve Bank and branch during 1920, with totals for
1919
132
135
TABLE OF CONTENTS.
CONDITION OF FEDERAL RESERVE BANKS:
No. 16. Resources and liabilities of all Federal Reserve Banks combined
at close of business on each Friday from January 2 to December
30, 1920
."
"
No. 17. Net amount of accommodation received from or extended to
other Federal Reserve Banks as of the last Friday in each month
from April, 1919, to December, 1920
No. 18. Detailed statement showing condition of each Federal Reserve
Bank on December 31, 1920
No. 19. Net deposits, Federal Reserve note circulation, required reserves,
and excess reserves of all Federal Reserve Banks combined for
each Friday in 1920
No. 20. Average daily figures of cash reserves, total earning assets, net
deposits, and Federal Reserve note circulation, also the daily
average reserve percentage, by months during 1920 and 1919...
Discounted paper—
No. 21. Average daily holdings of each Federal Reserve Bank, by
months during 1920, with totals for 1919, 1918, and 1917
No. 22. Maturity distribution of amounts held by each Federal Reserve Bank on the last Friday in 1920
No. 23. Maturity distribution of amounts held by all Federal Reserve
Banks combined on the last Friday in each month during
1920, and on the last Friday in 1919, 1918, and 1917
No. 24. Secured by Liberty bonds, Victory notes, and certificates of
indebtedness, held by all Federal Reserve Banks combined
on the last Friday in each month during 1920
No. 25. Character of paper held by each Federal Reserve Bank on
December 30, 1920
No. 26. Character of paper held by all Federal Reserve Banks combined on the last Friday of each month during 1920, with
totals for 1919 and 1918.".
Purchased paper—•
No. 27. Average daily holdings of each Federal Reserve Bank, by
months during 1920, with totals for 1919, 1918, and 1917
No. 28, Maturity distribution of amounts held by each Federal Reserve
Bank on the last Friday in 1920
No. 29. Maturity distribution of amounts held by all Federal Reserve
Banks combined on the last Friday in each month during
1920, and on the last Friday in 1919, 1918, and 1917
No. 30. Held by each Federal Reserve Bank on December 31, 1920,
and by all banks combined at the end of 1919, 1918, 1917,
and 1916, by classes of accepting institutions
No. 31. Held by all Federal Reserve Banks combined at the end of
each month in 1920, by classes of accepting institutions....
United States securities—
No. 32. Average daily holdings of each Federal Reserve Bank, by
months during 1920, with monthly totals for all banks combined for 1919, 1918, and 1917
No. 33. Held by each Federal Reserve Bank on December 31, 1920,
with totals for all banks combined for 1919, 1918, and 1917,
distributed by classes and maturities
V
Page>
137
144
146
152
155
156
157
158
159
160
161
162
163
163
164
165
166
167
VI
TABLE OF CONTENTS.
CONDITION OF FEDERAL RESERVE
BANKS—Continued.
Rates of earnings—
Page.
No. 34. Average daily holdings of each class of earning assets, earnings therefrom, and annual rates of earnings of each Federal
Reserve Bank during 1920 and 1919
168
No. 35. Annual rates (per cent) of earnings on total earning assets of
each Federal Reserve Bank, by months during 1920, with
annual rates for each Federal Reserve Bank and monthly
rates for all Federal Reserve Banks combined for 1919, 1918,
and 1917
172
DISCOUNT AND OPEN MARKET OPERATIONS:
Total volume—all classes—
No. 36. Of each Federal Reserve Bank during 1920, with totals for
1919 and 1918, distributed by classes
No. 37. Of all Federal Reserve Banks combined, by months during
1920, distributed by classes
No. 38. Of each Federal Reserve Bank, by months during 1920, with
total by months, and by Federal Reserve Banks for 1919
and 1918
Discounted bills—
No. 39. Discounted by each Federal Reserve Bank during 1920, by
months and maturities
No. 40. Discounted by each Federal Reserve Bank during 1920, distributed by classes, with average rates and maturities of
total bills discounted by each bank
No. 41. Volume by States; also number of member banks in each State
and number accommodated through discount of paper during
1919 and 1920
No. 42. Discounted by each Federal Reserve Bank for national banks
and for State bank and trust company members during
1920 and 1919
No. 43. Member banks' collateral notes and customers' paper secured
by Government war obligations discounted by each Federal
Reserve Bank, by months during 1920, with totals by banks
and months for 1919 and 1918
No. 44. Trade acceptances discounted by each Federal Reserve Bank,
by months during 1920, with totals by banks and months for
1919, 1918, and 1917
No. 45. Bankers' acceptances discounted by each Federal Reserve
Bank, by months during 1920, with totals by banks and
months for 1919
No. 46. Discounted by each Federal Reserve Bank during 1920, by
normal rates of discount charged
No. 47. Number of banks in each district accommodated through the
discount of paper, by months during 1920, with totals by
banks and months for 1919, 1918, and 1917
No. 48. Average rate (per cent) charged on all bills discounted by each
Federal Reserve Bank, by months during 1920, with average rates by banks and months for 1919 and 1918
No. 49. Average maturities (in days) of all bills discounted by each
Federal Reserve Bank, by months during 1920, with average maturities by banks and months for 1919 and 1918
173
174
175
176
180
181
184
184
185
186
186
187
188
188
TABLE OF CONTENTS.
VII
DISCOUNT AND OPEN MARKET OPERATIONS—Continued.
Purchased bills—Bankers' and trade acceptances—
Page.
No. 50. Purchased in open market by each Federal Reserve Bank, by
months during 1920, with totals by banks and months for
1919, 1918, and 1917
189
No. 51. Purchased in open market by each Federal Reserve Bank
during 1920, by maturities
190
No. 52. Purchased in open market by all Federal Reserve Banks combined during 1920, by months and maturities
191
No. 53. Purchased in open market by all Federal Reserve Banks combined during each month in 1920, distributed by classes,
with totals by classes for 1919
192
No. 54. Purchased by each Federal Reserve Bank during 1920, by rates
of discount charged
192
No. 55. Average rate (per cent) charged on all bills purchased by each
Federal Reserve Bank, by months during 1920, with average
rates by banks and months for 1919
194
No. 56. Average maturities (in days) of all bills purchased by each
Federal Reserve Bank, by months during 1920, with average
maturities by banks and months for 1919
195
Inter-Federal Reserve Bank accommodation—
No. 57. Rediscounts and sales of bills between Federal Reserve Banks
during 1920—Chronological table
Summary, by months, of bills re discounted and sold by each Federal Reserve Bank during 1920
Summary for the year, by Federal Reserve Banks
203
204
Treasury certificates—
No. 58. United States certificates of indebtedness purchased by each
Federal Reserve Bank, by months during 1920, with monthly
totals for 1919 and 1918
205
196
GOLD SETTLEMENT FUND:
No. 59. Summary of transactions January 1 to December 31, 1920
No. 60. Weekly operations through the banks' gold settlement fund during
1920
No. 61. Changes in ownership of gold through transfers and settlements, by
weeks during 1920
206
208
212
CLEARING SYSTEM:
No. 62. Operations of the Federal Reserve clearing system during 1920....
216
PAR LIST:
No. 63. Number of member banks, and of nonmember banks on par list, in
each Federal Reserve district, as of the 15th of each month, in
1920
218
EARNINGS AND EXPENSES:
No. 64. Earnings and expenses of each Federal Reserve Bank
220
FISCAL AGENCY DEPARTMENT EXPENSES:
No. 65. Expenses of each Federal Reserve Bank and reimbursements received from United States Treasury
223
VIII
TABLE OF CONTENTS.
Receipts and disbursements of the Federal Reserve Board
State banks and trust companies admitted to membership
Abstract of condition reports of State banks and trust company members
Fiduciary powers granted to national banks
Banks granted authority to accept drafts and bills of exchange up to 100 per
cent of capital and surplus
Personnel and salaries:
Salaries of officers and employees of Federal Reserve Banks
Salaries of officers and employees of Federal Reserve Board
Salaries of national bank examiners
Directory:
Federal Reserve Board
Officers and directors of Federal Reserve Banks
Federal Advisory Council
Regulations of the Federal Reserve Board
Amendments to Federal Reserve Act and Clayton Antitrust Act
Summary of all amendments to Federal Reserve Act
Acts of State legislatures in opposition to par collection system
Opinion of Circuit Court of Appeals in Atlanta par collection case
Reply of Federal Reserve Board to Senate resolution relative to check clearing.
Page.
224
228
253
255
267
272
275
278
281
281
288
288
315
318
327
330
335
CHARTS.
Currency received from and paid to member and nonmember banks by the
Federal Reserve Banks
Movement of earning assets of all Federal Reserve Banks during 1920
Net deposits, Federal Reserve note circulation, total reserves, and reserve percentages of all Federal Reserve Banks during 1920
Accommodation received from or extended to other Federal Reserve Banks...
Required and excess reserves during 1920
Average daily holdings of discounted bills and of other earning assets by each
Federal Reserve Bank:
During 1919
During 1920
Operations through the gold-settlement fund during 1920
Operations of the Federal Reserve Bank of New York through the gold-settlement fund during 1920
134
142
143
145
154
170
171
210
211
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
361-596
361
379
404
424
439
458
477
494
515
534
554
574
PART III.
Recommendations of the Federal Advisory Council, 1920
Description of Federal Reserve districts
597
610
PART I.
REPORT OF THE FEDERAL RESERVE BOARD,
WITH EXHIBITS.
IX
THE FEDERAL RESERVE BOARD.
DECEMBER 31, 1920.
DAVID F. HOUSTON, ex officio,
Secretary of the Treasury, Chairman.
JOHN SKELTON WILLIAMS, ex officio,
Comptroller of the Currency.
W. P. G. HARDING, Governor.
EDMUND PLATT, Vice Governor.
ADOLPH C. MILLER.
CHARLES S. HAMLIN.
D. C. WILLS.
ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
FEDERAL RESERVE BOARD,
Washington, February 16, 1921.
SIR : The Federal Reserve Board has the honor to submit its
seventh annual report, which relates to operations for the calendar
year ended December 31, 1920.
The past year has been essentially a period of reaction. The year
immediately preceding was characterized by an unprecedented orgy
of extravagance, a mania for speculation, overextended business in
nearly all lines and in every section of the country, and general demoralization of the agencies of production and distribution.
Beginning with abnormally large importations of gold in 1915,
the course of world events forced upon this country during a period
of five years the greatest expansion it has ever known. It was universally realized that there would be sooner or later reaction and readjustments, and those who recalled the effects of readjustment after
former periods of great expansion and abnormal activity regarded
the future with grave apprehension.
While indications that the country was approaching a readjustment period were not lacking during the closing months of the year
1919, it was not until the spring of 1920 that it became generally
recognized that reaction had set in and that the country was passing
through the most acute stage of transition from wartime delirium to
the more normal conditions of peace. This process of readjustment
began almost simultaneously throughout the world, and its effects
have been more far-reaching and drastic in other countries where the
inflation of bank credit and currency" was more pronounced than in
the United States. The process necessarily has been painful, but it
was inevitable and unavoidable, and in view of world-wide conditions could not have been long deferred in this country by any artificial means or temporary expedients which might have been adopted.
In meeting the strain to which our domestic banking system has
been subjected, a strain which always accompanies the economic and
financial changes which follow a period of great expansion, no
resort was made to credit curtailment or to contraction of the currency. The precautionary steps which were taken during the year
1
2
ANNUAL REPORT FEDERAL RESERVE BOARD.
did not produce deflation, but they checked the expansion which
had been proceeding at a dangerous rate and prevented a larger
measure of distress than has actually occurred.
As the year closed there were many indications that business generally was beginning to adjust itself to new conditions and was preparing to proceed on a sounder and saner basis. The most trying
and critical stage of readjustment was passed before the end of the
year and the situation at its close was intrinsically better than at its
beginning. Then it was foreseen that the developments which have
occurred were impending and the future was regarded with uneasiness and apprehension. Now it is generally recognized that the
crisis has been passed and that the country has regained a more normal state of mind, which is of first importance in working back
toward normal conditions; and looking to the future, a spirit of
greater confidence prevails.
Because of the universal and sweeping changes wThich took place
during the year and of the rapidity with which they occurred, the
year 1920 will be ranked as one of the most eventful in economic history. It does not appear inappropriate, therefore, in making a report of the operations of the Federal Reserve System during the year
and in discussing the policies controlling those operations, to review
the underlying causes and immediate effects of the reaction which
has taken place.
Hitherto periods of rapid readjustment, such as were witnessed
during the past year, have invariably been accompanied by severe
financial disturbances or money panics. The absence of such developments in the United States during the past year must therefore
be regarded as the strongest proof of the efficiency and stability of
our present banking system, and of its ability to absorb the shock and
avert the disaster which in other times has overtaken the country. In
previous periods of abnormal activity, industry and commerce,
although dependent upon credit conditions, generally have been more
nearly self-sustaining than was the case when the recent wave of expansion was at its crest. At such times no doubt commercial and
industrial activities were less affected by those influences which bear
directly upon the credit situation. Differences .of opinion have
always existed among economists as to the extent to which credit
modifications have been the cause, and as to the measure in which
they are to be regarded as the effect of industrial changes. Relationships between credit and business have always been complex and
often justify differences of opinion. During the past year, however,
the course of events presents a picture of world-wide change proceeding from profound economic causes in which credit appears as only
one of a group of major factors.
ANNUAL REPORT FEDERAL RESERVE BOARD.
3
It is, however, true that in periods of transition, when marked
changes in business conditions are taking place, there is a disposition
to shift responsibility for disappointment or'misfortune upon the
credit system, thus magnifying its true function as a regulator of
commerce and business into the role of a savior or else a destroyer
of industrial prosperity. Such conclusions proceed from a superficial and inadequate view of the general economic situation and its
resultant problems. No thorough analysis of the causes of present
conditions in the field of banking and finance can be made without a
clear understanding of basic facts relating to commerce and industry.
With these first surveyed and with the facts regarding extension of
credit, both by the member banks and by the Federal Eeserve Banks,
briefly outlined, it will be possible to obtain a more accurate idea of
the influences affecting the general course of business and finance in
the United States during the year 1920 and of the effect of these
influences.
The developments during the year 1920 all over the world have
been along lines of industrial and commercial readjustments. There
are several measures or tests which may be applied in order to ascertain the character and scope of these readjustments. Of these, one
of the most obvious and familiar is the volume of production.
Viewed from the standpoint of the volume of commodities made available for consumption, the year 1920 was one of plenty. As is well
known, the outturn of primary wealth—farm products and raw materials in general—has been of more than average volume. According to the figures of the Department of Agriculture, the corn crop
of 1920 was the largest ever produced; the production of cotton
larger than that of any year since 1914, while that of wheat was
surpassed only five times in the history of the country. The production of other staples was almost without exception beyond the
average.
While figures approximately accurate are available as to agricultural production, the record of the year with respect to manufactured
products is not so clear. Some investigators, however, have reached
the conclusion that the output of the mills and factories was probably
near the maximum about May 1. Indications are that in distinctive
manufacturing and industrial lines there had been, following the
cessation of heavy production for war purposes, a decrease in output
and a readjustment of its character, which continued for several
months following the armistice. During this time the requirements
of buyers did not conform to market conditions, but there subsequently developed shortages in various lines, which were followed by
a considerable increase in productive activity, while in some lines,
such as textiles, a sellers' market eventually developed. This period
ANNUAL REPORT FEDERAL RESERVE BOARD.
of greater production reached its peak during the early months of
the year, since which time a decline in production has been in
evidence, as is shown*by the following table:
December, 1919.
Live stock receipts at 15 western markets (in thousands of
head)
6,992
Grain receipts at 17 interior centers (in thousands of bushels)... 76,805
Cotton sight receipts (in thousands of bales)
2,219
Lumber shipments reported by 3 associations (in millions of
feet)
633
Anthracite coal production (in thousands of short tons)
_, __
8,089
Bituminous coal production (in thousands of short tons)
! 36,612
6612
Crude petroleum production (in thousands of barrels)
! 32,508
Pig-iron production (in thousands of long tons)
j 2,633
Steel-ingot production (in thousands of long tons)
\
Cotton consumption (in thousands of bales)
j
512
W ool consumption (in thousands of pounds)
55,566
March,
1920.
October, Decem1920.
ber, 1920.
5,072
67,941
797
5,355
95,955
1,467
4,992
75,058
l5$0
910
7,857
46,792
35,831
3,376
3,299
576
58,345
699
8,069
50, 744
39,592
3,293
3,016
400
33,704
515
8,321
52,565
38,961
2,704
2,340
295
All industries have not been affected alike, however, the decline
having been most marked in leather and textiles, while steel industries have only recently shown that they are affected by the same
influences. The decrease in unfilled orders on the books of large iron
and steel industries which has been in progress since August indicates not only a relative decline in the activity of these basic industries, but also of other industries dependent upon them for
material. How far the actual shrinkage in production has gone in
the aggregate can be estimated only, but some light on the situation
is given by the Board's index of production which follows.
In order to show the changes in productive activity, there are
presented below four tables showing relative figures of the movement
of live stock, grain, and cotton during the year 1920; of the production of anthracite and bituminous coal and crude petroleum; and of
the output of pig iron and steel ingots; also absolute quantities of
cotton and wool consumed.
Movement of agricultural products,
[Monthly average, 1911-1913=100.]
Live-stock Grain rereceipts at ceipts at
15 western 17 interior
markets.
centers.
Average for year 1918
Average for year 1919
Average for year 1920 .. .
January
February
March
April . .
Mav
June...
July
August
O ctober
November.
December
Cotton
sight
receipts.
127
129
111
129
106
97
74
84
72
139
102
110
90
112
110
100
109
114
116
129
105
100
94
87
57
72
88
96
115
141
123
98
96
126
87
64
44
29
21
29
25
62
117
144
126
1920.
ANNUAL REPORT FEDERAL RESERVE BOARD.
Coal and petroleum
production.
[Monthly average, 1911-1913=100.]
Anthracite Bituminous
Crude
coal procoal pro- petroleum
duction.
duction. production.
Average for year 1918
Average for year 1919
Average for year 1920
.
Ill
99
100
130
103
125
155
164
103
91
106
84
108
110
112
108
63
109
101
112
131
112
126
102
107
118
123
131
138
137
138
142
176
177
187
186
190
193
199
204
196v
207
202
203
1920.
January
February
March
April
May
June
July
August
September
October
November
December
Iron and steel production.
[Monthly average, 1911-1913=100.]
Average for year 1918
Average for year 1919
Average for year 1920
1920.
January..
February."
March..
A p ril
May
June
July
August
September
October
November
December
Cotton and woolen consumption.
[Pounds.]
Cotton consumption.
Average for year 1918
Average for year 1919
Average for year 1920
Wool consumption.
257,356,000
246,646,500
243,330,500
50,429,835
45,257,215-
295,960,500
257,849,500
287,894,500
283,457,000
270,688,500
277,577,500
262,744,500
241,596, 500
228,823,500
199,918,500
166,028,500
147,425,500
63,059,862
55,247,652
58,344,602
57,887,832
50,649,381
40,679,920
32,372,064
32,849,956
30,928,337
33,703,523
24,150,141
1920.
January
February
March
April
May
June
July
August
September
October
November
December
.'
6
ANNUAL REPORT FEDERAL RESERVE BOARD.
Summarizing the facts thus reviewed, it will be seen that after the
peak of war production had been reached by speeding up all available energies during the closing months of the war, there was a sharp
decline in activity, which continued during the uncertain months
following the armistice and well into the year 1919 until the flotation of the Victory loan. A gradual expansion then developed,
which culminated in much higher production early in the year 1920,
and during this time the inability of the railroads to provide adequate transportation facilities brought about an unusual and serious
congestion at initial points. This circumstance was due partly to
an unusually severe winter, and partly to the renewed increase of
production and a larger volume of goods to be shipped. All the factors of the situation taken together brought about an accumulation
of commodities until the late spring and early summer, when, as the
result of more favorable weather and better transportation facilities, delayed consignments began to reach the markets in volume,
but too late for sales on terms as advantageous as probably would
have been obtainable had they reached distributors earlier and in a
normal way.
INDUSTRY AND PRICES.
The course of prices during the year 1920 has been extraordinary
and the effects far-reaching. About the time when production
reached its postarmistice peak—that is, in the early spring—a tendency toward reaction in prices became evident in several countries.
Among the first indications of this tendency may be noted the collapse of the silk market in Japan and the public protest against
current prices for clothing, which had as one of its manifestations
the short-lived movement to wear overalls. These events were followed later by depression in Cuba and other Latin-American countries, due to rapid declines in sugar, coffee, and other staples produced in those countries. There are presented in the table following
the index numbers of prices compiled by the Board from American
data and obtained from information supplied by foreign correspondents,
ANNUAL REPORT FEDERAL RESERVE BOARD.
Wholesale price indexes.
[Average prices, 1913=100.]
1920
Nov. Mar.
1918. 1919.
United States:
Federal Reserve Board
index
Bureau of Labor Statistics..
United Kingdom, Statist
index
France
Italy
Sweden
Canada
Japan
. .
India
Australial
Jan. Feb. Mar. A p r .
May
June July Aug. Sept. Oct. Nov. Dec
191
242
242
248
203
204
258
250
234
226
208
190
?ftfi
201
248
249
?,53
?65
27?.
?m
262
250
?A?,
225
207
1X9
229
358
437
307
215
210
217
337
324
354
205
202
169
307
555
619
354
258
321
198
209
313
588
679
354
261
300
200
217
,W>
550
659
361
263
271
210
225
300
493
615
366
258
247
206
233
?00
496
613
363
256
239
209
234
298
501
632
365
244
235
209
236
292
526
660
362
241
230
208
230
282
502
662
346
?M
226
206
215
263
460
658
331
2?5
221
194
208
243
434
635
172
487
504
319
248
301
218
203
30n
522
556
342
254
313
209
206
1
171
?m
314
?0f>
180
197
Trices, July, 1914=103.
During the year the country as a whole experienced a very serious
economic dislocation, the ultimate and inevitable outcome being a
general suspension of buying which eventually resulted in greatly
reducing the demand for commodities, thus making it impossible for producers and manufacturers to dispose of their goods on
the market in the same volume as before. Had manufacturing
industries been able to continue to export their entire surplus as had
been the case during the years of war financing both before and after
the armistice, this situation might not, perhaps, have immediately
affected the marketing power of these enterprises, although eventually it was certain to do so. However, changes in foreign trade
conditions contributed directly to the creation of a surplus which
could not be disposed of abroad and which was therefore entirely
dependent upon the home market.
On previous occasions of business readjustment or transition it
usually has been possible to locate some definite point at which th&
break in prices and decline in speculation in commodities had taken
place. In the present readjustment the beginning undoubtedly must
be noted in the Japanese silk market. Almost simultaneously with
the collapse of the silk market in Japan there was a radical revision
of prices in Germany. The situation in that country had from the
beginning of the year been precarious, being characterized by great
disparities between domestic and foreign prices of German goods.
These disparities taken in conjunction with the unsettled state of
foreign exchange led to unwholesome and extensive exportations of
German goods, especially to France and England. The conditions
were so artificial that attention was speedily directed to them, resulting in radical price revisions and the abnormal activity rapidly
settled down to a state of depression. It is difficult to determine
exactly how far this condition of business in Germany reacted upon
45525°—21
2
8
ANNUAL. REPORT FEDERAL RESERVE BOARD.
conditions in other countries, but it undoubtedly produced a profound effect. Not only in the Far East, therefore, but also in that
country which perhaps felt most keenly the financial and economic
consequences of war was a severe shock administered to the growth
of postwar inflation and overtrading. This reaction setting in almost
simultaneously, both in Europe and in the Orient, came at a time
when production during the postarmistice period had probably
reached its height and when also prices in most countries were at
the peak. It was a situation which made readjustment inevitable—
a readjustment which must take effect not merely in prices but in
every division of economic life.
As production had been increasing during the summer and fall of
1919 and the spring of 1920, there was at least a tendency in some
lines to what may be termed " overproduction " in a relative rather
than an absolute sense, as excessive supply was due mainly to reduced consumption. In these circumstances the equilibrium of
prices could have been maintained only through an increased or at
least sustained buying power, as well as disposition to buy on the
part of the public, which, however, was not existent. Consequently,
it became evident after the end of the first quarter of the year
that the buying or consumptive power was not sufficient in volume
to absorb the greater quantities of goods which were being steadily
produced and offered to the public. The practical question accordingly arose whether reductions in prices would not be necessary in order to move the current output of manufactured goods.
In some lines an effort was made to solve the problem through a
voluntary restriction of production, but it soon became evident that
such measures were inadequate, and accordingly substantial reductions in prices of some articles which had reached a high level
were announced by producers. Striking examples of these tendencies
were seen in textiles, automobiles, shoes and leather goods of all
kinds, and in a variety of other manufactures.
The decline in wheat and breadstuffs generally has been ascribed
by some to the relinquishment of the Government control of wheat
prices on June 11, 1920, followed by the reestablishment of openmarket trading. The Federal Trade Commission has recently made
a report in which economic causes which have led to the decline are
clearly set forth. As a matter of fact, the decline has been more
marked in many commodities which have never been the objects of
price control. In metals, rubber, oils, cotton, and fabrics of all descriptions and throughout a large range of other commodities, the
prices of some of which had been fixed, while the others were sold
without restrictions, the downward movement of prices has been
even more marked than in grain and flour and represents a. combination of influences.
9
ANNUAL KEPOET FEDERAL RESERVE BOARD.
In the following table the prices of some of the more important
staples are compared at their postarmistice peak with the lower
levels established during the downward movement which extended
over the last half of the year 1920.
Prices of leading commodities (averages for the
Peak since armistice.
Wheat, No. 2 red winter, cash,
Chicago, bushel.
Cotton, upland middling, New
Orleans, pound.
Wool:
Ohio fine unwashed delaine,
Boston, pound.
Ohio J blood unwashed,
Boston, pound,
Hides:
Packer, heavy native steers,
Chicago, pound.
Calf, selected 7-9 pounds,
New York.
Silk, Japanese filature Shinshu,
No. 1,13-15, New York,pound.
Rubber, first Paiex crepe, New
York,pound.
Sugar, raw, 96° centrifugal, net
cash, New York, pound.
Pig iron, basic, Mali ning and
Shenango Valley furnace, pound.
Copper, electrclitic, New York,
pound.
Petroleum, crude mid-continent
at wells, barrel.
month).
June. July. Aug. Sept. Oct. Nov. j Dec.
$2. 90 12. 81 82.47 $2.49 $2. 20 12. 06 | $2.01
May, 1920. $2. 98
Apr., 1920.
.41
Mar., 1920.
1.00
D e c , 1918.
. 79
Oct., 1919.
.48
.36
.30
.28
.29
.26
.22
,20
Nov., 1919. 10.13
5.75 4.06
3.65
3.25
2.69
2.42
1.85
1.75
6. 80 6.53
.41
.40
.35
.29
.21
.80
.70
.68
.63
.65
.55
.47
.43
.40
.40
.18
.15
.60
.51
.50
.38
.28
.30
8.35
7.40
5.60
6.50
5.90
Feb., 1919.
.57
.39
.38
.32
.31
.26
.24
.19
.17
May, 1920.
.21
.21
.20
.18
.13
.11
.08
.07 |
Feb., 1920. 16.85 11.35
Sept., 1920. 48.50 43.25 44.00 45. 75 48.10 48.50 43.75 36. 50
Nov., 1918.
.26
.18
.18
.19
Mar .-Oct., 3.50
1920.
3.50
3.50
3.50
.18
.05
33.00
.18
.16
.14
.13
3. 50 3.50
3.50
3.50
3.50
In considering the trend of prices, crop yields of the year should
not be overlooked. The final estimate of production of farm products
for the year which the Department of Agriculture issued on December
9, 1920, is as follows:
1914-1918,
5-year
average.
Corn
„
Winter wheat
Spring wheat
All wheat
Oats
Barley
Rye
Buckwheat
Potatoes
Sweet potatoes
Flaxseed
Rice
Tobacco
Hay, tame.
Hav, wild
Alf hav
Cotton...'
Apples, total crop
Annies' commercial
Pea
~ •
Pears
Beans, dry, 6 States
Grain sorghums, 7 States
Peanuts
Sugar bests
Broom corn
Sorghum (sirup)
Hops
...r
1920
production,
final estimate.
bushels..
. l GO 3 232,367,000
.do
577,763,000
74S, (oO
do.
209,305,000
8^2,, " b , 0 0
do
787,128,000
do.
526,055,000
'21% 8^ >,0,0
do.
202,024j000
000
do.
69,318,000
do..
13,789,000
do.
430,458,000
r J
Q
do..
112,368,000
1 2 , "* * v)0
do..
10,990,000
do..
53,710,000
1, JS7
.pounds
508,064,000
4
) « ,^
tons
91,193,000
17'
do
j
17,040,000
do.
108,233,000
v'/ ,(H/0
bales.. j
12,987,000
u S . 00
bushels
240,442,000
barrel;
36,272,COO
bust els
'
43,697,000
> 4 . 00
do.
17,279,000
do.
2 1 >, V)IJL>
9,075,000
do.
143,939,000
do.
35,960,000
tons.
8,545,000
6,051,000
do...
33,900
gallons.
43,876,000
pounds.
38,918,000
( (
10
ANNUAL REPORT FEDERAL RESERVE BOARD.
READJUSTMENT
A WORLD-WIDE PROCESS.
From the data, already submitted it is clear that a downward
movement of commodity prices had developed in all countries during
the spring and summer of 1920 and that this reaction was due to
faulty or failing distribution, and this in turn was mainly the result
of lessened ability or greater reluctance on the part of wage earners
and those with fixed incomes to buy as freely as in the past, together
with increased productive capacity, although in some cases goods produced were not of the kind and quality which were most salable. This
phase of the situation can be understood better when it is remembered
that during the war industry had been thoroughly reorganized and
that consumption had, through the application of wholesale governmental requirements, been shifted from its ordinary or normal channels into those of war demands. Owing to changes in the productive
situation the course of business activity assumed a direction entirely different from that which normally it would have taken, and
as governmental regulations were relaxed or rescinded demand and
consumption were gradually relieved of the control exercised through
these means. Thus there was unavoidably a more and more serious
lack of adjustment between the activities of producers and the demand of consumers as exhibited in the use of their buying power.
"Overproduction" in the sense of badly adjusted production-—
excess production in some lines as contrasted with others in which
production had been insufficient—was consequently characteristic
of the industrial situation in the various countries, including the
United States, at the beginning of the summer of 1920. These conditions might gradually have righted themselves without very serious
effects or without the necessity for drastic readjustment but for the
fact that practically all countries were passing through the same
change, and they were therefore unable to assist one another by
purchasing. At the same time the credit mechanism of the world
had already been strained almost to the limit.
The removal during the year 1920 of many of the governmental
restrictions upon prices and the movement of commodities also had
its effect. On June 11, 1920, Government control of grain prices was
abrogated and unrestricted transactions in grain were again permitted. In June the British Government terminated its control of
the wool market in Australia and modified its policy of intervention
in other directions. Thus the midyear of 1920 was a striking industrial turning point for the reason that at this time important governmental restrictions involving financial control and support of various markets were withdrawn. As these changes in governmental
policies were coincident with overstrained credit conditions and with
relative overproduction in many lines, a situation was created which
ANNUAL REPORT FEDERAL RESERVE BOARD.
11
initiated readjustment in prices and in business practically everywhere. It is worthy of note that these conditions did not originate
in the United States, but that this country was one of the last to feel
them acutely, and that so far it has felt them only in a much more
moderate degree than has been the case elsewhere.
THE CONTROL AND REGULATION OF CREDIT.
The determination of the policy pursued by the Federal Reserve
System in the face of conditions described was necessarily from
the outset a matter of profound importance. The development of
such conditions had long been foreseen by the Board and its policy
was shaped with a view of meeting them, and, as far as possible, of
minimizing injurious effects.
Up to the time the United States entered the European war, there
was no general appreciation of the ability of the Federal Reserve
System to meet the requirements of such a great emergency. The
question was whether it or any other system could raise and distribute the enormous loans necessary and could care for the vast
public financial operations which were the inevitable concomitants
of a great war. It required only a short time, however, to convince
even the most dubious of the credit capacity of the Federal Reserve
System and to demonstrate the smoothness and efficiency of its
operating mechanism. In fact, so readily did the new banking
sjT-stem respond to the demands made upon it during the early
months of the war that there were many who were alarmed at its
power to expand credit. The system was looked upon by many as
an engine of inflation and doubts of its ability to restrain undue
expansion at the proper time were frequently expressed. The Federal Reserve Board, however, has always been mindful of the credit
and banking conditions which were developing in the United States
and has never failed to take account of the consequences-of its discount policies. From the outset, it recognized its duty to cooperate
unreservedly with the Government to provide funds needed for the
war and freely conceded that the great national emergency made it
necessary to suspend the application of weli-recognized principles
of economics and finance which usually govern banking operations
in times of peace. War is the most uneconomic of all processes. But,
as soon as the armistice put an end to the war, the Board made a
new survey of the situation in order to determine what could and
should be done to check undue and unnecessary expansion of credit.
During the year 1919 this question was under constant consideration and it was hoped that the banks of the country would themselves see the wisdom of working back toward a more normal condition. From time to time the Board issued statements in which
its view of the situation was given and banks were warned of the
12
AlST^UAIi REPORT FEDERAL RESERVE BOARD,
consequences to be expected from a policy of constant overexpansion
which could be continued only by resorting to the rediscount facilities
of the Federal Reserve Banks. These warnings, however, were only
a transitory expedient and were given only momentary attention
by many, banks. The Board was prepared, as soon as Treasury
exigencies permitted, to resort to the well-known method of advancing the rate of discount.
The effects of the first advance of the rate of discount were reviewed
in the Board's annual report for the year 1919, but it was only during
the year 1920 that the necessity for the development of this policy
and the application of sound principles governing banking credit
have been most clearly reflected. In the situation which existed
ordinary prudence dictated plainly that not only should speculation
in corporate stocks and securities be restricted but that further expansion of banking credits made against goods and commodities in
storage should be checked. The loans and advances of a Federal
Reserve Bank should be as nearly as possible of a self-liquidating
character. Continued advances against unsold goods in storage
would tend inevitably to involve the banking system in the needless
risks and difficulties growing out of general changes in business conditions without improving in any respect the situation as a whole or
relieving those obliged to reduce prices or curtail production in order
to stimulate the demand necessary to move commodities from producer to consumer. The Board's purpose was to maintain the
strength of the Federal Reserve Banks, which are the custodians of
the lawful reserves of the member banks. It was not the Board's
intention to deny proper accommodation to agriculture, commerce,
and industry, for any such limitation would defeat the very object
of its policy.
Rates were advanced at all Federal Reserve Banks during the latter
part of January, several months before the slowing down in industry
took place and several weeks before ground was broken for the new
crops. Toward the end of May, in order to discourage applications
for rediscounts for nonessential purposes, the Board deemed it expedient to approve an advance in the discount rates of some of the
Federal Reserve Banks to 7 per cent for paper of 90 days' maturity.
Since the early part of June there have been no changes in discount
rates, except the discontinuance of the progressive rate and the
coincident establishment of a 7 per cent rate on commercial paper by
one of the banks.
The action taken by the Secretary of the Treasury in advancing the
rate on Treasury certificates of indebtedness to 5 | per cent for
6 months9 maturity and to 6 per cent for 12 months' maturity has
placed Treasury borrowings more nearly upon a basis of parity with
ANNUAL REPORT FEDERAL RESERVE BOARD.
13
current market rates and has made it possible to place these obligations in large volume with private investors, thus relieving the banks
of a substantial part of the burden formerly carried by them. Much
attention has been directed in current discussions of the Federal
Reserve System to discount rates and to the changes in the investment
market that have occurred during the past year. These changes have
often been represented as the outcome of policies of the Federal
Reserve Board. So generally does a misunderstanding of the facts
appear to exist, that it is deemed proper to outline briefly the situation as it developed. In the table appearing below are given the
discount rates of the Federal Reserve Banks as approved by the
Board and in effect on December 31, 1920, and December 31, 1919.
Discount rates of each Federal Reserve Bank in effect on December 31, 1920 and
1919.
Paper maturing within 90 days.
Secured by—
Federal Reserve Bank.
Treasury
certificates
of indebtedness.
Trade
!
Liberty
bonds and acceptances.:
Victory
notes.
1920 1919
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Cliieago
St. Louis
Minneapolisr
Kansas Cit3
Dallas
San Francisco
1920
4?
4|
4|
If
36
2 6
30
8 6
44
II
3,
4.3.1
All
other. 1
1920
1919 1920
i i
4* i
a1
Agricultural
Bankers'
and liveacceptances stock paper
maturing
maturing
within 3 after 90 days
months.
but within
0 months.
1919
4
if
4-|
1
54 I
5 I
42
42 I
1 Rates on paper secured by War Finance Corporation bonds, established in April, 1919, at 1 per cent ii
so ess of the discount rates on commercial paper of corresponding maturities, were discontinued effectiv
:pr. 1, 1920.
36
It will be seen that advances have been made of from -J per cent
to 2J per cent, varying with the maturity and character of the paper
offered for discount. It has been stated frequently, but erroneously,
that the effect of these advances was to reduce the total volume of
credit available and to contract the amount of currency in circulation.
That these statements are unwarranted will be shown by a glance at
the following table, in which the principal items of assets and liabilities of the Federal Reserve Banks are presented.
14
ANNUAL REPORT FEDERAL RESERVE BOARD.
Principal asset and liability items of the 12 Federal Reserve
Banks,
[In rail lions of dollars.]
Jan. 30. i F e b . 27. Mar. 5
Reserves:
Total
Gold
Bills discounted:
Total
Secured "by Government war obligations.
All other.'.
Bills b o u g h t i n open m a i k e t
Certificates of indebtedness
Total earning assets
Government deposits
Members' reserve deposits
Net deposits
Federal Reserve notes i n circulation
Feder a 1 Reserve B a n k notes in cir cul ation
Reserve percentage
2,074
2,013
2,083
1^967
2,057
1,935
2,071
1,937
2.092
1,'953 !
2,109
1,969
2,174
1,458
716
561
276
3,039
2,454
1.573
' 881
531
268
3,279
2,449
1,441
1,008
'452
263
3,191
2,535
1,465
1,070
407
267
3,236
2,519
1,448
1,071
419
280
3,244
2,432
1.278
1* 154
399
325
3,183
73
1,851
1, S07
2, 851
251
44.5 i
134
1,872
1,884
3,020
28
1,867
1.773
3; 048
201
42.7
1,860
1,813
3,075
178
42.4
36
1,853
1,795
3,1.07
179
42.7
14
1,832
1.723
3;' 117
186
43.6
42° 5
J u l y 30. Aug. 27. Sept. 24
Reserves:
Total
Gold
Bills discounted:
Total
Secured b y Government w ar obligations
All other
Billsboughtin open market
Certificates of indebtedness
Total earning assets
Government deposits
Members' reserve deposits
Net deposits
Federal Reserve notes in circulation
Federal Reserve Bank notes in circulation..
Reserve percentage
Apr. 30. ! May 28. J u n e 25.
Oct. 29, N o v . 26. Dec. 30.
2,129
1,978
2,128
1,972
2,152
1,990
2.168
2; 003
2,195
2,024
2.249
2; 059
2,492
1,241
1,251 I
345
299
3,162
2, €67
1,315
1,352
322
274
3,290
2,704
1.220
I,'484
308
271
3,310
2,801
1.204
1,597
298
269
3,396
2,735
1,192
1.543
'248
294
3,-504
2,719
1,141
1,578
256
261
3,263
12
1,808
1,697
3,120
192
44.2
44
1, S19
1,718
3,204
201
43.2
46
1,801
1,658
3,280
214
43.6
19
1, 806
1,675
3,351
215
43.1
16
1,712
1,624
3,326
215
44.4
28
1,749
1,604
3,345
217
45.4
A study of the foregoing figures will show that, as far as the resources and liabilities of the Federal Reserve Banks are concerned,
the effect of the Board's action in authorizing increases in discount
rates, even assuming that this action was a direct influence tending
to affect the gross volume of transactions, was merely to slow down
the immediate tendency toward expansion. From the end of February until they reached the peak for the year on November 5, except
for the temporary and nsual fluctuations which result from the quarterly income and excess profits tax payments made to the Government, the loans of Federal Reserve Banks have continued substantially at their present level. On December 80, 1920, the loans had
declined by $108,000,000 from their high point and Federal Reserve
note issues outstanding had declined by $60,000,000, but the percentage of reduction is so slight as to represent only a negligible
fraction of the total amount of credits extended.
The member banks of the Federal Reserve System, which have
direct dealings with the public, and whose transactions may be regarded as reflecting in some degree changes of policy of the Federal
15
ANNUAL EEPOBT FEDERAL RESERVE BOARD.
Reserve Banks, have during the year extended very full lines of
credit to their customers. The statistics presented in the following
table, which are compiled from figures furnished by the member
banks in the larger cities, show the volume of credit furnished by
these institutions and the amounts borrowed by them from the Federal Reserve Banks.
[In millions of dollars.]
Loans (including reRedisdiscounts) counts and
and invest- bills payments (ex- able with
cluding
Federal
Reserve
United
Banks.
States
securities).
Jan. 30.
Feb. 27.
Mar. 26.
Apr. 30.
May 28.
June 25.
July 30.
Aug. 27.
Sept. 24
Oct. 29.
Nov. 26.
Dec. 31.
14,777
14,924
15,271
15,249
15,262
15,371
15|3£5
15,429
15,692
15,052
15,311
15.359
1,834
2,143
2,114
2,136
2,060
1,946
1,973
2,128
2,151
2,244
2,174
2,098
Net
demand
deposits.
11,481
11,463
11,496
11,464
11,561
11,347
11,401
11,252
11,161
11,172
10,892
10,942
AGRICULTURAL CREDITS.
The impression has prevailed in some quarters that agricultural
credits in particular have been greatly curtailed during the past
year. On December 14 the Board received a letter from the chairman of the Senate Committee on Agriculture and Forestry requesting information as to the amount of actual agricultural paper rediscounted during the years 1919 and 1920, based on agricultural production and sales of the respective years. Section 13 of the Federal
Reserve Act provides that notes, drafts, and bills of exchange drawn
or issued for agricultural purposes, or based on live stock, having a
maturity of not longer than six months, are eligible for rediscount
by a Federal Reserve Bank, the limit of maturity in all other cases
being 90 days. The Federal Reserve Banks also rediscount large
amounts of agricultural paper which has a maturity of not exceeding
90 days. In response to the inquiry made by the Senate committee
the Board called for reports from the Federal Reserve Banks, and
the figures which are submitted in the subjoined table, while necessarily based on estimates, show conclusively that instead of there
having been curtailment in agricultural credits extended by the
Federal Reserve Banks during the year 1920, the volume of such
credit's was nearly three times as great as the volume so extended
during the year 1919. The figures given below do not include
any estimate from the Federal Reserve Bank of New York,
which has occasion to rediscount only a negligible amount of
16
AlSnSTTTAL REPORT FEDERAL, RESERVE BOARD.
farmers9 paper. It is known, however, that member banks in
New York City have made large loans to their correspondent banks
throughout the country, and it is reasonable to suppose that part
of the proceeds of such loans has been applied by the borrowing
banks for agricultural purposes, but, of course, the exact amount
can not be stated. The same observation is true with respect to loans
made by member banks in Chicago, St. Louis, Minneapolis, Kansas
City, New Orleans, San Francisco, and other financial centers
throughout the country. Nonmember State banks loaned large sums
in the aggregate for agricultural purposes, but as they have no dealings with the Federal Reserve Banks their loans to farmers are not
reflected in the figures furnished by the Federal Reserve Banks,
although it is a fact that all Federal Reserve Banks have been lending large amounts to member banks which have in turn rediscounted
paper for nonmember banks. It should be borne in mind also that
the total amount of farmers' notes rediscounted by Federal Reserve
Banks gives no indication of the amounts advanced by the Federal
Reserve Banks to finance the production and sale of farm products
since large amounts advanced to member banks in the agricultural
districts on commercial and industrial paper are used by these banks
for loans to agricultural interests. Purchases of bankers' acceptances by Federal Reserve Banks are not included in the table, although acceptances play an important part in the movement of crops
to ultimate markets.
Estimated amounts of paper rediscounted with Federal Reserve BanJcs based on
production and sales of farm products.
Boston.
New York
Philadelphia.
Cleveland.
Richmond.
Atlanta.
Chicago.
St. Louis.
Remarks.
1919
Federal Reserve Bank.
$2,642,000 I
0)
S4,979,000
1)
580,000
These figures are confined to farm and dairy loans
and do not include large amounts advanced on
cotton, wool, and similar lines.
Figures are confined t o strictly agricultural paper,
omitting the paper of wool dealers, cotton merchants, produce dealers, packers, agricultural
implement. and fertilizer concerns.
612,000 I
21,753,000 Total agricultural and live-stock paper discounted
These figures do not refteut total accommodation
granted to agricultural interests, as many members borrow on U. S. securities to afford accommodation to agricultural borrowers.
102,000,000 j
325,000,000 Figures include estimated amount of commercial
and industrial paper discounted the proceeds of
which were used for agricultural purposes.
2 230, 000,000
Do.
91,300,
128, 40S,000 Figures represent amounts of farmers' notes dis47,263,
counted.' Actual amounts loaned for production and sale of farm products are much in excess
of amounts given, as" sales of farm, products are
largely financed by commercial paper, also large
amounts are loaned to banks on commercial
paper or on notes secured by U.S. obligations, the
proceeds of which ar .^loaned for agricultural purposes either directly or through correspondent
banks.
2
220,000,000
2 6G5,000,000 In addition a large part of loans on commercial and
Government-secured paper was unquestionably
for benefit of farmers.
^Eleven months.
i No data.
2,971.
000 I
17
ANNUAL KEPORT FEDEKAL RESERVE BOARD.
Estimated amounts of paper rediscounted with, Federal Reserve Banks based on
production and sales of farm products—Continued.
Remarks,
Federal Reserve Bank,
Minneapolis
Kansas City
Dallas
*
$75,000,000
123; 481,000
.1 28,997, 000
San Francisco.
!
. I 35,000,000
Total for 11 banks - 729,266, 000
!
$225,000 000
229', 432.000
44,91i; 000 Figures GO not include member banks' collateral
notes the proceeds of winch were used for loans
to agricultural interests.
Figures include total amounts of paper re-discounted during the two years based upon production and sales of farm products, excluding
notes secured by Government obligations. The
bank is unable to estimate the amounts of paper
rediscounted which represents borrowings on
1,980,063,000 ! account of production and sales during the pre! ceding year.
122,000,000
There is also submitted below a table prepared from figures which
have been published monthly in the Federal Reserve Bulletin, showing the holdings of each Federal Reserve Bank on the last Friday
in each month during the years 1919 and 1920 of paper classed by the
Federal Reserve Banks as "Agricultural and live-stock paper." I t
will be noted that there has been a steady increase in these holdings
since the beginning of the year and that this increase has continued
after October, 1920, while in 1919 normal reductions from the high
September figures are shown during the months of October, November, and December.
Total amount of agricultural and live stock paper combined, held by each
Federal Reserve Bank on the last Friday of each month since January, 1919.
[In thousands of dollars.]
Date.
January
February...
March
April
May
June
July
August
September.,
October
November..
December..
January
February
Marcli
April
May
Juno
Jillv.
August
September
October
November2
December
Boston.
New
York.
Philadelphia.
Cleveland.
Atlanta
'
1919.
158
159
191
170
223
305
288
159
148
217
199
288
173
124
53
52
78
104
57
86
72
138
151
152
152
129
105
52
36
69
2G9
269
2,344
3,014
3 -52
3^304
3,143
3,086
2,826
3 5 039
3,225
1,568
553
449
2, 229
2,632
2,699
2,789
3,011
3,471
3,836
4,836
5,273
3,068
1,438
841
9,367
9,346
10,385
10,264
2,344
2,376
1,499
4,479
5,835
9,890
13,144
12,783
369
693
533
667
689
1,171
1,317 ! 2,127
2,646 i 4,300
4,581 | 7,130
7,887
13,319
9,273
18,051
10,091
18,465
9,392
19, 233
8, 481
18.970
9,251
16', 831
11,603
12,010
15,089
21,562
25,840
27^ 706
25,812
21,908
21.060
33^ 768
41,430
52,695
1920.
13
i 5,091
i 2,240
119
274
302
396
514
624
459
224
140
76
103
257
177
155
190
196
252
281
328
265
261
272
297 !
388
I
190
162
186
309
4.29
409
588
765
806
862
777
893
1
Practically entire amount represents paper held under rediscount for oilier Federal
Reserve
Banks.
2
Figures as of Thursday, December 30.
18
ANNUAL REPORT FEDERAL RESERVE BOARD.
Total amount of agricultural and live stock paper combined, held by each
Federal Reserve Bank on the last Friday of each month since January, 1019—
Continued.
[In tli on sands of dollars.]
Date.
January
February..
March
April
May
June
July
August...-.
September.
October
November.
December..
January
February
March
April
May
June
July
August
September
October
November1
December
1
Minneapolis.
San Francisco.
Kansas
City.
Dallas.
749
625
562
294
1,870
1,276
1,059
1.371
2; 836
3,336
3,332
3,228
3,111
5,327
5,867
6,855
19,584
20', 817
23,016
21,613
19,430
27,832
26. .539
17,938
19,454
19.132
20', 498
20', 022
15,373
17,915
IS, 008
18,831
18,694
18,149
15,880
14,298
15,124
10,404
5,794
4,450
7,601
8,335
8,120
7,880
8,465
8,717
8,225
9,055
7,193
5,067
4,101
4,620
59,001
63,917
67,373
66,881
58,991
68,256
63,604
57,901
60,205
55,475
52,550
51,068
295
389
676
2,559
3,384
4,255
5,818
5,738
6,618
8,063
5,864
4,896
9.503
12', 327
10,738
15,284
26,348
30,370
43.134
55i 815
Gl',472
61,036
67,S31
53,896
21,878
26,091
27,746
35,398
38,396
42,697
36.353
34,019
37,858
46,036
43,958
46,840
4.637
4'. 833
6^165
11,587
16,242
22,098
28,552
29.502
SI', 711
30,331
28,647
31,251
7,227
9,725
11=697
15; 644
22,250
27,874
35,179
38,478
35?942
31,580
29,122
29,740
56,905
67,195
74,665
106,3R2
140,691
168.038
202,520
216, 278
224,424
240,649
245,599
246,938
St. Louis.
Total.
1919.
185
224
438
455
615
759
806
|
I
I
!
713 I
1920.
Figures of Thursday December 30.
CHANGES NOT DUE TO CONTRACTION.
That the changes in business conditions and readjustment of prices
have not been brought about by contraction or drastic restrictions is
demonstrated by the fact that while the total volume of bank credit
in the United States declined but slightly from the first to the last
day of the year, the velocity or rate of turnover of credit has slackened materially, as indicated by the reduction during the latter part
of the year in the sum total of debits to individual deposit accounts
reported to the Board by the principal clearing houses of the country.
The following table shows for each month in 1920 and 1919 the
total volume of debits for all reporting centers combined, also for
New York City and for all other centers separately:
19
ANNUAL, REPORT FEDERAL RESERVE BOARD.
Bank, transactions as shown by debits to individual account, as reported
banks in about 150 of the country's leading deaiing-housc
centers.
by
[Amounts in millions of dollars.]
All reporting b a n k s .
Amc unt.
January
February
March
April
Mav
June
Julv
August..
September
October
November
December
Total
. . .
1920
1919
45,184
35.706
43,364
41, 598
41 375
39,779
39 910
36, 334
37 195
40,503
39,S77
41, 024
34, 792
28, 086
32, 014
32,642
3 V 896
38,194
40 918
37, 236
39 243
44'. 525
43' 483
45, 493
481, 849 454,552
Increase
( + )or
decrease
(-).per
cent.
+30. 0
+ 27.1
+35.3
+27.4
+ 9.2
+ 4.1
— 2.5
— 2.4
— 5,2
— 9.0
— 8.3
— 9.8
New York City.
Amount.
1920
1919
23,636
18, 053
22,2S5
21.319
19. 859
19^ 528
19,063
17. 371
11, 599
20,136
20, 308
21,888
18.119
14;493
16, 699
17; 324
20,828
21, 072
22,426
19, 932
20, 789
24,226
23, 856
24,357
+ 6.0 241, 045 244,121
Increase'
( + )or
decrease
(-),per
cent.
All other reporting centers.
Amount.
Increase
( + )or
decrease
(-),per
cent.
1920
1919
21.548
17; 653
21,079
20, 279
21,516
20, 251
20.847
18; 963
19,586
20,367
19,569
19,136
16, 673
13, 593
15,345
15,318
17,068
17,122
18,492
17.304
18.454
20'. 299
19,' 627
21,136
+29.2
+29.9
+37.4
+32.4
+26.1
+18.3
+12.7
+ 9.6
+ 6.2
+ 3
- .3
- 9.5
- 1.3 240, 804 210,431
+ 14.4
+30.4
+24. 6
+33.5
+23.1
— 4.7
- 7.3
—15.0
-12.8
-15.3
-16.9
-6.7
-10.1
From 45 billions in January the volume of transactions declined
to 36 billions in August and then increased to 41 billions in December.
For the first six months of the year the volume of debits was larger
in 1920 than in 1919, while for the last six months the figures declined to an increasing extent below the 1919 figures. In New York
City the 1920 totals were smaller than the corresponding 1919 totals
as early as May, the reduction in the volume of debits being due in
part to curtailment of speculation and to the general dullness of the
stock exchange, in part also to the organization of a stock-exchange
clearing house, whose operation reduced the volume of checks required to effect settlements in stock-exchange transactions. The aggregate volume of debits in New York City for the year was about
3 billions less than for the preceding year, a decline of 1.3 per cent.
Outside of New York the total of debits was 30 billions, or 14.4 per
cent larger in 1920 than in 1919, monthly totals being larger in 1920
for each month, except November and December, though the excesses
were much greater in the earlier than in the later months of the year.
The largest monthly excess of these debits is shown for March. Since
then a gradual decline may be noted, corresponding to the lessened
volume of trade and since June also to the decline in the price level.
Debits for October are barely in excess of the 1919 total, those for
November are slightly below the corresponding total for the earlier
year, while the total for December, 1920, was about 10 per cent below
the total for the last month in 1919.
FOREIGN TRADE FINANCING.
Changes in production and prices, however, have only a partial
significance, unless considered in their relation to foreign trade. Our
20
ANNUAL KEPORT FEDERAL RESERVE BOARD.
trade relations with other countries have been of increasing importance ever since the outbreak of the European war. but at no time have
questions relating to our foreign trade been of such vital importance
as has been the case since the armistice. During the course of the
war our trade with other countries passed through several stages Gf
evolution, the last being the period when our exports to Europe were
financed through credits extended by the Government of the United
States, This stage necessarily continued long after actual hostilities
were concluded hj the armistice, for there was still standing on the
books of the Treasury a large unused balance of the credits which
had been opened in favor of various allied Governments, and pending the return of our troops from abroad their pay and maintenance
by the Government sustained export operations. Subsequent to
the armistice export trade amounting to about $2,500,000,000 was
financed through credits extended by the Treasury Department.
These credits were an important factor in the maintenance of our
foreign trade during the first half of the year 1919, but it was recognized that methods of financing adopted under the stress of war
should not be continued as a permanent peace policy, for the funds
necessary to make such credits available must be raised either by
taxation or through loans, Thus upon the exhaustion of the Government credits it became necessary for American exporters to find
other means of financing their transactions.
Evolution in banking has always grown out of necessities arising
from current conditions. For example, a material change was
made in the banking system of the United States during the Civil
War in order to meet the requirements of that period, and the
National Bank Act was the outcome. Many years later the changes
in the character of our exports from a preponderance of foodstuffs
and raw materials readily sold, to a larger proportion of manufactured articles, which require greater selling effort and greater banking efficiency in order to meet competition successfully, led to the
incorporation in the Federal Reserve Act of sections giving to member banks the authority to establish branches in foreign countries and
to accept bills of exchange drawn upon them payable at a future
time not to exceed six months after sight.
.During the World War a new condition developed, and it was
found that the usual credits of from 60 to 90 days designed to cover
the financing of exports from the United States while goods were
in transit, or even for a period of six months, were not sufficiently
long to maintain the continuance of trade. The cause of this development was simple. There were no longer seasonal periods in
each year during which the excess of imports over exports or exports
over imports was continually reversed, so that the resulting trade balance could be readily settled by flow of gold to or from the United
ANNUAL REPORT FEDERAL RESERVE BOARD.
21
States in connection with the other normal operations which affect
foreign exchange, such as tourists' requirements, foreign remittances,
freights, sales of securities, etc. On the contrary, a condition existed where exports from European countries failed not only to
meet balances in favor of the United States during the period of
heavy seasonal exports such as those of wheat and cotton, but where
they were far from offsetting favorable balances during any part of
the year.
The causes of such a condition were due entirely to the war.
Before the armistice, Europe called upon us for material for war
purposes and food for its armies and peoples far beyond the ability
of its civilian population to supply (this resulted in very heavy
imports and lack of exportable commodities with which to pay
for them). Since the armistice Europe has needed raw materials
in great quantities in order to reestablish her industries, together
with an immense amount of imported foodstuffs, while political
and economic disturbances have prevented a resumption of normal
production. These circumstances have continued the constant and
overwhelming balance of European imports over exports that first
developed during the war. In order to coordinate American capital
and banking facilities in these transactions Congress enacted what
is commonly known as the Edge Act, The object of this law is to
provide a means by which long-time credits can be extended legitimately wherever necessary in order to complement the ordinary
bank financing of our foreign trade. Banks having demand deposits
may not safely extend the long-time credits required, but it was felt
that they might properly be authorized to participate with merchants, manufacturers, and producers in the formation of other
corporations authorized to extend the necessary long-time credits,
and national banks have accordingly been authorized to invest not
exceeding 10 per cent of their capital and surplus in the capital
stock of such corporations, It is believed that, while not jeopardizing the position of the banks, this plan has the distinct advantage of keeping practical bankers in touch with what is in reality
a banker's business, and at the same time that it will result in closer
cooperation between those handling short-time and long-time credits
for exports, thus working toward greater security for' pll concerned.
But i:\v "^hwicrr'nu Mnd financial vrrcLl is roufroacod with a unique
and u3!i]*!ilt situation identified in the public mind with the depreciated exc i urn ires of other count n o but fuiuiiuneraali} to be
explained <Tny by the causes fo" such doLreoiniion.
Tn order tc* rimd means of coive^'iing theso cans* s it is necessary to
study the eflim of the demijged foreign exchanges. The outstanding
and most disturbing fact lies in ihe brake put upon the distribution
of the world's products, for it is this stagnation of distribution which
22
ANNUAL REPORT FEDERAL RESERVE BOARD.
throws commodities upon markets that can not absorb them, resulting in a rapid fall of prices and consequent enforced unemployment of those engaged in production. Many countries which before the war had been in the habit of shipping their products
to European countries are unable to do so to-day, as they can
not sell on long-time credit; therefore they naturally turn to the
United States, where they can sell for cash. In the course of time
such commodities have accumulated here but there is no market for
them, and countries which have been sending us their surplus products find that they have at' present nothing marketable to send us with
which to pay for their imports from us. We find ourselves therefore with a large export trade which is being paid for only in part
by a great portion of the world, and this trade is fast approaching
a point where it may be cut drastically to the most vital essentials
unless the normal credit and buying power of Europe can be restored. This restoration can be accomplished only over an extended period of time if our raw materials go forward in a steady
stream against long-time credits. Foodstuffs must be furnished also,
and except where shipped by relief organizations they should in the
main be paid for promptly as they go into immediate consumption.
We are therefore brought face to face with the problems of how we
can best extend long-time credits to European countries in order to
enable them to reconstruct their industries and how we can extend
credit to other countries in order to enable them also to make shipments to Europe which otherwise would be made to the United States
and glut our domestic markets.
It is now possible to organize under our laws a form of corporation which has powers designed to meet this situation. By means
of corporations organized under the Edge Act, long-time credits
may be granted to finance exports not only from the United States,
but from foreign countries as well. All of these operations are
necessary for the solution of the present world problem. Should
we proceed with only our present facilities for foreign trade, we
may expect a damming up of our exports, with resultant competition
in domestic markets affecting all kinds of commodities and manufactures. The congestion of commodities now existing would continue and the bottom would be reached only after large losses had
been sustained and great hardship endured. Even in ordinary times
when prices fall after a long rise and the decline is not drastic, the
readjustment process is often very difficult. But to-day when goods
valued at $1,000,000 a few months ago can be sold for not more than
$250,000 to $500,000, the problem becomes a much more serious one.
This constant and drastic decline in prices is not due to any lack of
world requirement for the things themselves, but to the inability of
those needing the things to pay for them in the foreign countries
ANNUAL, REPORT FEDERAL RESERVE BOARD.
23
where they are obtainable. There is the need and potential demand
for the commodities, but an effective and economic demand is lacking
because of absence of immediate purchasing power. For these reasons it is desirable that appropriate means be devised in order to
assist the distribution of those commodities which are normally dependent upon foreign markets. It is the opinion of the Board that
the opportunity afforded by the Edge Act for the organization, under
Federal charter, of companies engaged in international trade and
finance offers a practical means of effecting better distribution of
goods and commodities in world trade.
SUPERVISION OF CORPORATIONS FORMED UNDER THE EDGE ACT.
Section 25 of the Federal Reserve Act, as amended by the acts of
September 7, 1916, and September 17, 1919, authorized a national
bank having a capital and surplus of $1,000,000 or more to invest,
under certain circumstances, in the .stock of corporations chartered
or incorporated under the laws of the United States or of any State
thereof and principally engaged in international or foreign banking,
and authorized any national bank, until January 1, 1921, without
regard to the amount of its capital and surplus, to invest under certain circumstances in the stock of one or more corporations 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 might be necessary to facilitate exports from the
United States or any of its dependencies. At that time, however.
Congress had not provided any means for the Federal incorporation
of foreign banking corporations or other foreign financial corporations in whose stock national banks were authorized to invest. In the
enactment of section 25 (a) of the Federal Reserve Act, approved December 24, 1919, Congress provided a means for the incorporation of
institutions under Federal law for the purpose of engaging in international or foreign banking or other international or foreign financial operations in whose stock national banks, as well as individuals,
firms, and other corporations, may invest.
It should be noted that the provisions of section 25 (&), which confer Lipon national banks authority to invest in the stock of corporations organized under that section, are more liberal than the related
provisions of section 25 permitting national banks to invest in the
stock of corporations organized under State laws. Under the provisions of section 25 a national bank which possesses a capital and surplus of $1,000,000 or more may invest in the stock of international or
foreign banking corporations organized under State laws to the extent of 10 per cent of the subscribing bank's capital and surplus,
and a national bank, irrespective of the amount of its capital and surplus, may, until January 1,1921, invest in the stock of corporations or45525°—21
3
24
ANNUAL REPORT FEDERAL RESERVE BOARD.
ganized under State laws and engaged in foreign financial operations (as distinct from foreign banking corporations), provided
that its investment is limited to an amount not in excess of 5 per cent
of its capital and surplus. On the other hand, the provisions of section 25 (a) permit a national bank, irrespective of the amount of its
capital stock, to invest to the extent of 10 per cent of its capital and
surplus in the stock of corporations organized under the provisions
of that section and engaged either in foreign banking operations or
In the foreign investment business, provided, only, that the aggregate
of all investments made by the national bank under the terms of
section 25 and section 25 (a) does not exceed 10 per cent of its capital
and surplus. So far as investments by national banks are concerned,
therefore, a corporation organized under section 25 (a) enjoys certain
advantages which a corporation organized under the laws of a State
does not enjoy,
While, as has been pointed out in the earlier part of this report,
corporations organized under section 25 (a) may be used as a means
of assisting in the reconstruction of Europe at a time when such
assistance is most vitally needed, nevertheless, the real purpose of
this section is a broader one—that is, to provide for the establishment of a Federal system of international banking or financial
corporations operating under Federal supervision with, powers sufficiently broad to enable them effectively to compete with similar
foreign institutions and to afford to the American exporter and
importer at all times a possible means of financing his foreign business. Although it is true that the immediate effect of the operation
of corporations under the terms of this section may be greatly to
aid in the extension of much-needed credits to Europe, that effect
is in reality only one incident to the permanent development of the
American export market.
Congress, being mindful of the unusual powers conferred by this
section, placed upon the Federal Reserve Board the responsibility
of making such regulations and restrictions as may be necessary to
insure the conservative and prudent management of corporations
chartered under its provisions and to safeguard as far as possible
the interests of the public with whom they may do business, The
Federal Reserve Board, therefore, while realizing the importance
of making its regulations sufficiently liberal to enable corporations
operating under them effectively to compete with foreign institutions or State institutions doing a foreign business, has been impelled by the ordinary principles of banking prudence to impose
restrictions which it believes will ultimately do much to command
the prestige and public confidence, upon which must depend the success of every corporation of this character.
KEPORT FEDERAL RESERVE BOARD.
25
The Federal Reserve Board on March 23, 1920, issued its Regulation K, Series of 1920, governing the organization and operation of
corporations under the provisions of section 25 (a). This regulation
prescribed the formalities necessary for the organization of corporations under this section. Specific provision was made for the transfer of stock of such a corporation to insure compliance with the provisions of the act, and it was expressly provided that the by-laws of
the corporation must contain appropriate regulations for the registration of the shares of stock in accordance with the terms of the law
and the Board's regulations, and that such by-laws must also provide
that the stock certificates shall contain sufficient provisions to put the
holder on notice of the terms of the law and the regulations of the
Board. Under this regulation agencies may be established in the
United States with the Board's approval, but for specific purposes
only and not generalfy to carry on the business of the corporation.
Branches may under no circumstances be established in the United
States and may be established abroad only with the approval of the
Board. The regulation authorized the acceptance of drafts and bills
of exchange growing out of transactions involving the importation
or exportation of goods, provided, however, that the maturity of
such drafts and bills is not in excess of six months, and provided
that, except with the approval of the Federal Reserve Board, no corporation may accept drafts or bills of exchange if at the time such
drafts or bills are presented for acceptance it has debentures outstanding. The aggregate of any corporation's liabilities outstanding
at any one time was restricted to ten times the amount of the corporation's capital and surplus. The regulation further provided that
each corporation shall make at least two reports annually to the
Board in such form as it may require and that an examination shall
be made at least once a year by examiners appointed by the Board.
Regulation K of the Board's new regulations, Series of 1920, which
supersedes the Board's original Regulation K, issued March 23, 1920,
makes only one substantial change. The paragraph entitled " Acceptances " has been amended so as to permit corporations organized
under the provisions of section 25 (a) to accept, subject to substantially the same conditions as are imposed by law upon member banks,
drafts drawn by banks or bankers located 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 those countries, dependencies, or possessions.
It is realized by the Federal Reserve Board that the organization
raid operation of these corporations involve new principles and new
fields of effort, and that experience may demonstrate that the regulations which it has promulgated may be in some respects too re
26
ANNUAL. BEPOKT FEDERAL RESERVE BOARD.
strietive and in other respects too liberal. The Federal Reserve
Board, therefore, in order to permit of the development of operations under the terms of this section in the manner contemplated by
Congress, has reserved the right to amend its regulations from time
to time in such manner as experience and changing conditions may
dictate.
Since the passage of the so-called Edge Act, Wo international
financial corporations have been incorporated under the provisions
of that act, one with a capital stock of $2,100,000 and the other with
a capital stock of $7,000,000. Plans are now well under way for
the organization of another corporation with a capital stock of
$100,000,000. Requests are being constantly received by the Board
for information concerning the organization of corporations under
section 25 (a) and it is not unlikely that other corporations will be
organized within the next year.
STATE FOREIGN BANKING CORPORATIONS.
During the year one American banking corporation, organized
under State laws, principally engaged in foreign banking, has entered into the necessary agreement with the Board to enable national
banks to purchase its stock under the provisions of section 25 of the
Federal Reserve Act. The number of such corporations in operation has thus been increased to 10.
:he Equitable Eastern Banking Corporation, of New York, was
organized in December, 1920, with a paid-in capital of $2,000,000,
and has entered into the usual agreement with the Board for the
regulation of its operations. This corporation is controlled by the
Equitable Trust Co., of N~ew York City.
The scope of operations of the other American foreign banking
corporations doing business under agreement with the Board (listed
below in the table) has been extended considerably during the past
year. Combined capital and surplus accounts of the head offices of
these corporations have increased $9,870,000. The American Foreign
Banking Corporation has increased its foreign branches from 9 to 19,
the new branches being located at San Pedro Sula, Honduras, Central
America; Buenos Aires? Argentine Republic; La Vega, Santo Domingo ; San Francisco de Macoris, Santo Domingo; Santo Domingo,
Santo Domingo; San Pedro de Macoris, Santo Domingo; Sanchez,
Santo Domingo; Santiago, Santo Domingo; Puerta Plata, Santo
Domingo; Mexico City, Mexico.
The Mercantile Bank of the Americas has established a branch at
Hamburg, the International Banking Corporation has added branches
at Barahona, Dominican Republic; Madrid. Spain; Barcelona, Spain;
27
ANNUAL REPORT FEDERAL RESERVE BOARD.
and the Equitable Eastern Banking Corporation has established a
branch at Shanghai, China.
As of Dec. 31, 1920.
Name of corporation.
American Foreign Banking Corporation, New York City.
Mercantile Bank of the Americas,
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.
Equitable Eastern Banking Corporation, New York City.
Organized under laws of
State of—
SubsidiResources ary or
Foreign Domestic
(head
affiliated branches.
branches.
surplus. office). institutions.
Capital
and
$0,504,635 $40,606,352
New York
Connecticut... 10,570,000 87,786,228
New York
1
16
4
5,100,000 24,652,299
9
1
Connecticut... 10,000,000 76,427,505
31
1
New York .
4,621,004 16 297 406
4
2
.
.
2 500,000 17 534 560
do
do
6 629,736 26 894 304
Massachusetts. 1,950,000 9,443,675
2,500,000 11,334,078
do
New York.... 2,500,000 2,500,000
1
1
1
FOREIGN BRANCHES OF NATIONAL BANKS.
The Federal Reserve Board during the year 1920 authorized the
establishment of foreign branches and subbranches of national banks
as follows:
National City Bank, New York City: Branch in London, England,
February 2; subbranch in same city June 8.
First National Bank, Boston, Mass.: Branch in Rio de Janeiro,
Brazil, September 21.
The branches operated by the National City Bank in the cities of
Madrid and Barcelona, Spain, were transferred to the International
Banking Corporation, of New York City, on September 21.
FOREIGN EXCHANGE DURING 192 0.
It should be understood that during the past 18 months our foreign
trade has been conducted under peculiar and difficult conditions.
The banking systems of the principal European countries which
were obliged to bear heavy burdens during the war on account of
the enormous drafts made upon them by their Governments found
it impossible to conduct their business in a normal way, not only
because of the great issues of paper currency which have been
emitted, but also because of changes in the credit standing of great
numbers of their clientele. The efficient banking machinery which
28
ANNUAL. KEFOET FEDERAL RESERVE BOARD.
had existed in Europe prior to 191.3 has been destroyed in some
cases and in others has been crippled. This would in any case
have been a serious barrier to resumption of normal trade relations
with foreign countries by the United States, but the situation has
been further aggravated because of the fact that the standards of
value throughout Europe have so extensively and seriously broken
down. Consequently foreign exchanges have become unstable and
the usual methods of collecting indebtedness abroad are no longer
effective. Furthermore, the embargoes upon movements of gold
which still prevail in many countries have prevented stabilization
of exchanges. It is not, therefore, remarkable that in many cases
exporters finding their banks unable or indisposed to extend accommodation which would involve the carrying of large balances
in foreign banks should themselves have assumed the financial risks
and have continued their transactions by accepting payments in the
currencies of the countries to which the goods were shipped or in
some cases by accepting credits on the books of the European importers.
In order to point out some of the problems and difficulties, which
have been attendant upon foreign trade transactions because of the
violent fluctuations and the erratic course of foreign exchanges, it
seems proper, to give a detailed review of these fluctuations and their
causes.
During the month of December, 1919, European exchanges showed a
downward tendency, sterling falling from $4 a pound to $8.76, francs
from 9,90 francs to the dollar to 10.90, guilders from $0,38 each to
$0.37|, Swiss francs from 5.48 to the dollar to 5.62, lire from 12.34
to the dollar to 13.25, Danish crowns from 20 cents to 19 cents each,
Swedish crowns from 22.35 cents to 21-J cents. The rates named last
in each case prevailed at the opening of the year 1920 and represented the depreciated exchanges in the New York market, those
of the allied nations in particular showing large percentages of depreciation.
Throughout the year 1920 all of these exchanges together with Norwegian crowns and German marks (with certain exceptions which
will be mentioned later) followed substantially the same course. In
a general way they all continued to fall until about the 1st of March,
rising until the first part of April, and, after fluctuations during
April and May, returning during the first part of June to practically the same general level which had prevailed during trie first
part of April. Then followed a marked rise in sterling, French
francs, Belgian francs, and Swedish crowns until the high point of
the year was reached in these exchanges just before the middle of
ANNUAL REPORT FEDERAL RESERVE BOARD.
29
July. In the meantime guilders, Norwegian and Danish crowns,
marks and lire had all been working a little lower. From the middle of July all of the European exchanges steadily eased off during
the rest of the year^ except for short rises over occasional periods of
a day or a week, until in the early part of November they had all
fallen to about the lowest point of the year. Sterling exchange,
which was at $3.80 to the pound at the beginning of the year, reached
$3.35 in November. It had fallen to $3.19 early in February, but this
was a temporary break based upon rumors that England might establish an embargo on the importation of cotton. It recovered sharply to
$3.31, after which it dropped again to $3.19J. Many banks dealing in
foreign exchange discontinued at this time making advances on dollar 'drafts drawn against exports to foreign countries and began taking them for collection only. Announcement some days later that
England was planning to export gold to the United States to meet
the Anglo-French loan which matured October 15, 1920, caused a
sharp rise in sterling which continued to advance until it reached
$4.03 a pound in April. During the remainder of the year sterling
followed the general tendency.
The arbitrage of the exchanges through London was so free and
constant throughout the year 1920 that, except for special conditions
which applied to certain local currencies, sterling exchange was closely
followed by all the other exchanges. In the case of French and Belgian francs some very marked fluctuations came about in both 1919
and 1920, which were due entirely to speculation based upon the possible outcome of negotiations being held, or expected to be held, between the Allies. During each one of these conferences—or usually in
anticipation of them—sterling exchange in Paris and Brussels fell
rapidly, which forced up the rates of these exchanges as quoted in
dollars. The rumors which were at the bottom of these movements of
sterling exchange in France and Belgium were that further loans
might be arranged in England for the use of these two countries, particularly of France. British and French newspapers during these
periods printed articles thought to be officially inspired, which gave
such force to the rumors that very large speculative operations were
immediately undertaken in anticipation of the effect that such loans
would have. After it developed at each one of these meetings of
the Allies that no loans had been effected in England for account
of France, sterling exchange in Paris again advanced, with the resultant fall of the price for francs in the United States. As France
exports less to Belgium than it imports, the rates for these two exchanges have been affected proportionately the same, with a slight
difference in favor of Belgium,
30
ANNUAL REPORT FEDERAL RESERVE BOARD.
In April the belief was prevalent in the markets that Great Britain
would not join with France in any extension of the Anglo-French
loan and that France would have to take care of its own obligations.
This led to a sharp rise of sterling in both Paris and Brussels and a
corresponding fall in the value of French and Belgian francs, which
continued throughout the month of April. From that time until the
high point of the exchanges was reached in July, the movement of
exports from the United States to France and Belgium was proportionately less than during the rest of the year. At the same time importers in France were not placing orders for further imports, and
they stopped the purchase of dollars for spot and future delivery.
Coincidently it became known that the French Government was taking positive action to meet payment of its part of the Anglo-French
loan. French francs advanced from the low point of about 17 francs
to the dollar in April to 11.80 francs to the dollar early in July, and
Belgian francs from 16,30 to the dollar in April to 11.10 in July.
Marks, which opened the year at about 2 cents each, dropped violently during January and reached the low point close to 1 cent in
February. About the middle of March and April there were violent fluctuations in marks, but the fall after each rise left the rate a
trifle higher than before the rise, until the high point was reached in
the latter part of May, when marks sold at 3.04 cents each. The operations which appeared to have brought about this rise were the purchase in the United States, Great Britain, and Holland of German
municipal bonds and other securities. As soon as this speculative
buying had run its course the German mark began to fall rapidly,
until on November 1 the mark was quoted at 1.14 cents.
It is interesting to note that the sharp rise in the value of the
mark during the month of May caused serious losses to German
manufacturers and for a time stopped their export trade. These
manufacturers had purchased raw materials in foreign markets
when the foreign exchanges were up and were obliged to take payment for finished products when foreign moneys were down. The
low current value of the mark was also making it extremely difficult for manufacturing interests in neutral countries, as it was
cheaper for these countries to export raw materials direct to Germany,
have them made up into finished goods and reimport them from
Germany, paying freight both waj^s, than to import raw materials
direct and to manufacture the goods themselves.
From the middle of July through the remainder of the year, except
for minor fluctuations, the steady downward trend of all European
currencies was due to the fact that these months covered the period
ANNUAL REPORT FEDERAL RESERVE BOARD.
81
of our exports of cotton and other agricultural products. The
immediate turn in the latter part of July was due partly to the crisis
in Poland occasioned by the advance of the Russian armies. Early
in August, when it appeared that Warsaw might be taken, all of the
European exchanges dropped suddenly, but as the Polish armies
drove the Russians back, the exchanges recovered part of the loss.
In September labor troubles in Italy began to take a serious turn,
and certain manufacturing concerns were taken over by the labor
emploj^ed therein. Lira exchange then began to fall and continued
its downward course from its high point of 15.8 lire to the dollar,
which it reached the latter part of June, to the low point for the
year in the first part of November, of 30.3 lire to the dollar. While
the British coal strike was reflected in the exchanges in October, to
a certain extent the general feeling seemed to be that it would be
settled and its effect was noticeable only for a few days.
Investments have been made by those who have absorbed foreign
exchange, as bills for export have been offered during the year,
because they expected to make a profit over a long or short period,
and it is only because of purchases of exchange so made that foreign exchanges have been maintained at all. During normal periods
Avhen gold, arbitrage, or temporary borrowings can be used to
offset temporary exchange balances, fluctuations of exchange between the principal industrial countries of the world which are on
a gold basis are generally governed by the gold points—that is, the
exporting or importing points. When, however, the balance of trade
is constantly one way and the time when a turn may be expected is
an indeterminate future, which is made more uncertain because
of unlimited inflation, the gold points lose all force. Then the
fluctuations of exchange during each day and each period come to
depend upon the proportionate simultaneous presentation of export
bills and demands to pa}^ for exports, and any other operations which
create or require exchange, together with the opinions of those who
are looking for investment in any one of the ways previously mentioned because such rates as prevail offer opportunities for possible
profit. Extreme fluctuations of the exchanges covering large percentages are certain to occur under such conditions. The support
of the exchanges being subject to such sentimental buying, they are
more subject to the influence of political or other events which would
seem to have an effect upon them than might otherwise be true.
32
AKKUAIi REPORT FEDERAL RESERVE BOARD.
During the year 1920 these elements resulted in percentages of
differences between high and low points of the principal European
exchanges, which were as follows:
Sterling
,
French francs
Belgian francs
Lire
Swedish crowns
Norwegian crowns
Danish crowns
German marks
.
.
.
Per cent.
19. 8
38. 5
35. 3
55. 8
.
20. 7
35. 3
31. 7
65. 7
Some of the sharpest fluctuations covering a period of a comparatively few hours, or over a day or so, were, in sterling, a drop of 7.5
per cent in two business days, with a recovery of 2.8 per cent in 24
hours, a total recovery in 10 days during the first half of February, and a sudden drop the first and second of August of 4 per
cent, with a recovery of 2.4 per cent in the two succeeding days;
in French francs a fall of 10.4 per cent in three days during the first
half of April, a rise of 9.4 per cent in three days at the end of May,
and a fall of 7.3 per cent in two days just after the middle of July.
The sharpest movements in Belgian francs were practically the same.
In Dutch guilders there was a sudden rise the latter part of
January of 4 per cent, followed immediately by an approximately
equal fall. Italian lire had a perpendicular drop over a few days
from the latter part of January to the first few days of February of
19 per cent, a further rapid fall the first part of April over the course
of a few days of 22.8 per cent, which was followed by a sudden rise
in two days of 21.4 per cent. The latter part of May there was
another sharp rise for a few days of 19 per cent. From the first of
July until the first week in November there were constant sharp
falls, with five sudden temporary recoveries for a day or so of about
4 per cent each.
Marks fell 50.5 per cent between the 1st of January and the 24th,
rose sharply over the course of a day or two 26.4 per cent, and immediately dropped to the original low point. At the end of the first
week of March, over two days they rose 55 per cent, and lost practically all of the advance in the succeeding four days. Early in
April they had again risen 80 per cent, practically all after the
second of the month, dropped by the middle of April 19 per cent,
went up during the third week in May 46 per cent, and almost immediately fell 25 per cent. The fluctuations during the remainder of
the year were in similar large percentages, but always with a downward, tendency, until the end of the first week in November.
ANNUAL REPORT FEDERAL RESERVE BOARD.
33
Attention is called to these percentages in order to show under
what tremendous difficulties bankers and exporters and importers
had to trade. In order to make it possible for our exporters to sell
their goods, bankers were obliged to buy bills on markets which
might drop out from under them while they were at telephones
making purchases, and while there were occasional sharp rises in
their favor, yet on the whole during the year the tendency was downward, and the rates of all the European exchanges the first week in
November were far below the prices at which they had ruled at the
beginning of the year.
The far eastern exchanges, with the exception of exchange on
Japan, showed a constant downward tendency throughout the year.
The greatest drop was in Shanghai taels. Hongkong dollars followed next, and rupees also showed a great decline. The depreciation of the Manila peso was not so great; during the latter part of the
year it ruled at a discount of from 4 to 8 per cent. The Japanese yen,
which opened the year at a premium, fell below par during the first
few months of the year, after which it went back to a premium, where
it remained throughout the balance of the year, except one day. The
premium on the yen the first week of November was, however, very
small. The same difficulty in paying for imports from the United
States that prevailed in all of the far eastern countries, except Japan,
has been met with in Australasia, The Canadian dollar was at a
discount throughout the year, and reached its greatest depreciation
in November, together with all of the other foreign currencies.
Without having their figures available it would seem, judging
from their relations with the United States, that other foreign countries were not able to trade with the European countries even proportionately as well as the United States. This was undoubtedly
due to the fact that they could not find buyers to any extent of
favorable balances that might have been created. Their trade naturally, therefore, tended more toward the United States than was
normal, particularly as Europe could not supply them with their
requirements to the same extent as before the war. Having to pay
for imports from the United States, they naturally exported more
to this country, and again, because they were able to receive in effect
payment in cash. This resulted in the import into the United States
of commodities in vast quantities, for which we suddenly found we
had no market, as their true markets were European countries.
With the sudden fall in prices of the things which many of the South
American and far eastern countries had to sell, and the development
in the United States of stagnant markets at any price, their opportunity to buy further from the United States was sharply cut off.
84
ANNUAL KEPORT FEDERAL, RESERVE BOARD.
The world trade of the United States, therefore, is being menaced
by the circumstances which have produced demoralization of world
exchanges, and until the causes of this demoralization have been removed through the resumption of general distribution of goods among
the nations, our foreign trade is going to be extremely difficult to carry
on, and we must expect violent fluctuations, which will be entirely
at the mercy of political events, relationships between daily offerIngs of exchange and demand for it. and money markets,
EXCHANGE TRANSACTIONS WITH SOVIET RUSSIA.
As stated in the Board's Annual Report for the year 1919, the
President, on June 26,1919, issued a proclamation which revoked and
canceled all previous proclamations prohibiting the exportation of
coin, bullion, and currency and controlling transactions in foreign exchanges, and the power and authority for those purposes vested in
the Secretary of the Treasury and the Federal Reserve Board, and
all orders, rules, and regulations issued or prescribed in connection
therewith, except that such proclamations, orders, rules, and regulations were continued in force and effect in so far as they were 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) snij 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 June 30, 1919, the Federal Reserve
Board announced that remittances to the countries referred to in the
fourth exception mentioned above were not thereafter subject to
any restrictions, On August 12, 19199 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.
On December 18, 1920, with the approval of the Department of
State, all supervision and control of the above-named transactions
were suspended, until further notice, in order to give force and effect
to the action of that department in removing restrictions in the way
of trade and communication with soviet Russia, as announced by the
Department of State on July 7, 1920,
ANNUAL REPORT FEDERAL RESERVE BOARD.
35
RELATIVE POSITION OF AMERICAN BUSINESS AND FINANCE.
Some of the principal factors in the situation which contrast our
position with that of foreign countries may be outlined as follows:
(1) The expansion in the total volume of currency has been much
less in the United States than in other countries and the increase
in the total circulation, while greater than that which has taken
place in Spain, Japan, Sweden, the Netherlands, Denmark, and
Switzerland, has been far less than in other countries as is shown by
the following tables.
Comparative table showing total note circulation, deposits, and gold and silver
holdings of the principal banks of issue, at the outbreak of the war, about the
time of the armistice, and at latest available dates.
(In thousands of dollars.)
At outbreak of th e war.
Per cent of
gold and
silver
Gold and holdings
to
silver
note and
holdings.
deposit
liabilities
combined.
circulation.
Total
deposits.
Note and
deposit
liabilities
combined.
311,665
1,289,855
20,409
250,716
332,074
1,546,571
56,619
919,968
17.1
59.5
144,566
187,253
326,699
471,265
187,253
185,567
90,030
331, 819
326,699
658,518
275, 597
39.4
48.1
41.9
180,411
74,944
255,355
110,521
43.3
4 l 0 718
96 ; 321
145,330
586,048
96,321
287, 825
22,581
49.1
23.4
Total note
ALLIED POWERS.
Belgium
Franco
Great Britain:
Bank of England
E x chequer
Total
Japan 1
Italy:
Banka of Italy, Bank of Naples, Bank
cf ?>ilv
Treasury
Total
Russia...:
Total including Russia .
Total, excluding Russia
I nited States2
537,039
145,330
682,369
310,406
45.5
841,174
592,522
1,433,696
863,371
60.2
3,491,963
2, G50, 789
1, 416, 620
824.098
4,908.583
3, i li, 8S7
2, 536, 482
1,673,111
1, 097, 353
445,671
51.7
48.1
40.6
1,097,353
CENTRAL POWERS.
Austria-Hungary Germany
Total
Argentina 3
Denmarlc
Netherlands
Norwav
Spain
Sweden
Switzerland
Total
- --
431,489
692,442
59,012
299,515
490,501
991,957
309; 825
363, 670
63.2
36.7
1,123,931
358,527
1,482,458
673,495
45.4
349,485
39,525
124,790
32 85"')
373.557
54,367
51, 708
5,496
1,904
3 859
96;931
18,440
9, 777
349,485
45, 021
126,700
36 718
470^ 488
72, 807
61,485
313,407
24, 410
68,447
14 405
248]861
26,154
38, 409
89 7
54.2
54.0
39 2
52.9
35.9
62.5
1,026,297
136,407
1,162, 704
734,183
63.1
NEUTRAL POWERS.
1
2
Includes gold held abroad.
The circulation represents greenbacks and national bank notes. The gold and silver holdings represent gold and silver held by the national banks, 60 per cent of the clearing house certificates, the reserve
against greenbacks, and the available gold and silver coin in the Treasury.
3 Figures for the Caja de Conversion.
36
ANNUAL REPORT FEDERAL RESERVE BOARD.
Comparative table showing total note circulation, deposits, and gold and silver
holdings of the principal banks of issue, at the outbreak, of the war, about the
time of the armistice, and at latest available dates—Continued.
(In thousands of dollars.)
About the time of the armistice.
Total note
Total
circulation. deposits.
Per cent of
gold and
silver
Gold and holdings
to
silver
note and
holdings.
deposit
Note and
deposit
liabilities
combined.
liabilities
combined.
ALLIED POWERS.
Belgium 4
France
Great Britain:
Bank of England
E xchea u^r....
Total
. .
Japan i
904,583
5,900,147
484,234
620,483
1,388,817
6, 520,630
56,917
5 719,818
4.1
11.0
316,016
1,429,734
821,037
1,137,053
1,429,734
362,968
138,695
821, 037
2,566, 787
1 745 750
j
412,001 |
504,175 |
Italy:
I
Bank of Italy, Bank of Naples, Bank
of Sicily
I 2,218,689
Treasury
j
403,274
Total
I 2, 621,963
501,663
31.9
9.7
19.5
339, 532 I
37.1
2,593,244
403,274
224,285 |
31,826 |
8.6
7.9
2,996,518 |
256,111 j
8.5
916,176 j
Russia..
Total, excluding Russia
United States:«
CENTRAL TOWERS.
Austria-Hungary
Germany
"
Argentina s.
Denmark...
Netherlands
Norway
Spam
Sweden
Switzerland.
Total.
1
3
4
5
6
I 11,584,444 I 2,804,484 | 14,388,928 1 1,874,041
13.0
I 3, 675,206
1, 685, 677 | 5,340, 883 | 2,305,456 i
43.2
64,598 i
612,564 !
6.8
677,162
3.8
j
i 7 7,210, 253 1,446, 806 I 8, 657,059
i a 6, 524,350 I 2,454,370
8,978, 720
3,901,176 I 17,635,779 |
490,644
117,974
446,218
116,905
620,630
210,109
183,886 j
2,186,366
22,485
35,343
34,306
219,920
37,920
31,616
490,614
140,459
481,561
151,211
840,550
248 029
215^502
!
!
]
I
I
i
269,628 !
50,988 I
284,840 I
32,691 !
553,350 | .
75.940 |
83,' 993 I
381,590 1 2,567,956 | 1,351,428 j
55.0
36.3
59.1
21.6
65.8
30.6
39.0
52.6
Includes gold held abroad.
Figures for the Caja de Conversion.
July 10, 1919.
Exclusive of $393,162,000 held abroad.
The circulation represents Federal Reserve notes in actual circulation, Federal Reserve
bank notes in actual circulation, national bank notes and greenbacks. Deposits are net
deposits of the Federal Reserve Banks, Gold and silver holdings comprise those shown by
the Federal Reserve Banks, exclusive of gold with foreign agencies, also the Treasury
reserve
against greenbacks, and the available gold and silver in the Treasury.
7
8 Does not include " s c r i p " (Kassenscheine.)
Includes notes of the War Loan Banks (Darlehnskassenscheine).
37
ANNUAL EEPORT FEDERAL KESERVE BOARD.
Comparative table showing total note circulation, deposits, and gold and silver
holdings of the principal banks of issue, at the outbreak of the ivar, about the
time of the armistice, and at latest available dates—Continued.
(In thousands of dollars.)
At latest available date.
ALLIED POWERS.
Belgium.
France...
Dec. 16,1920
Dec. 23,1920
Great Britain
Bank of England
Exchequer
Dec. 15,1920 I
Total.
Japan*
220,973 I 1,380,040
694,916 i 7,921,678
j Dec. 11,1920
Italy
I June 30,1920
'Bank of Italy, Bank of I
Naples, Bank of Sicily... I
Treasury
j
Total.
Russia
j
Total excluding Russia
United States 6
•
j Dec. 30,1920
CENTRAL POWERS.
Austria-Hungary.
Germany
Nov. 23,1920
Nov. 30,1920
Tota
15,278,256 2. 052, 052
18,259,178 < 130,371
33, 537,434 6,182,423
39,719,857
318,119
NEUTRAL POWERS.
Argentina s
Denmark
Netherlands
Norway
Spain
Sweden
Switzerland
T ot al
i8
G
: Oct. 15,1920
i Nov. 30,1920
I Dec. 6,1920
I Oct. 31,1920
! Dec. 11,1920
Oct. 31,1920
Dec. 15,1920
579,089
148, 799
434? 58S
128, 225
817, 57G
207,113
178, 067
47, 708
30, 499
29, 077
231, 885
50,149
26,216
579, 089
196, 507
465, 087
157,302
1, 049, 461
257, 262
204, 283
447,217
61, 692
263, 900
39,483
586, 398
75,686
127, 809
77.2
31.4
56.7
25.1
55.9
29.4
62.6
. I 2, 493, 457
415, 534
2, 908, 991
1,602,185 j
.5.1
Includes gold held abroad.
Figures for the Caja de Conversion.
The circulation represents: Federal Reserve notes in actual circulation, Federal Reserve
bank notes in actual circulation, national bank notes and greenbacks. Deposits are net
deposits of the Federal Reserve Banks. Gold and silver holdings comprise those shown by
the Federal Reserve Banks, exclusive of gold with foreign agencies, also the Treasury
reserve
against greenbacks, and the available gold and silver in the Treasury.
7
8 Does not include " s c r i p " (Kassenscheine.)
fc Includes notes of the War Loan Banks (Darlehnskassenscheine).
Exclusive of $376,035,000 held abroad.
38
ANNUAL REPORT FEDERAL RESERVE BOARD.
Comparative table showing total note circulation, deposits, and gold and silver
holdings of the principal hanks of issue, at the outbreak of the war, about the
time of the armistice, and at latest available dates—Continued.
RECAPITULATION.
(In thousands of dollars.)
Total
Total note
circulation. deposits.
Note and
deposit
liabilities
combined.
Per cent
of gold
and silver
Gold and holdings
silver
to note
holdings.
and
deposit
liabilities
combined.
At outbreak of the war.
Allied powers:
Including Russia..
Excluding Russia.
United States
Central powers
Neutral powers
Total, including Russia..
Total, excluding Russia.
3,491,963
2,650, 789
1,097,353
1,123, 931
1,026, 297
1, 416,620
824,098
358,527
136, 407
4,908, 583
3,474, 887
1,097,353
1, 482, 458
1,162, 704
2, 536, 482
1,673,111
445,671
673,495
734,183
51.7
48.1
40.6
45.4
63.1
6, 739, 544
5, 898, 370
1, 911, 554
1, 319, 032
8,651, 098
7, 217, 402
4,389, 831
3, 526, 460
50.7
48.9
About the time of the armistice.
Allied powers..
United States..
Central powers.
Neutral powers
Total
11, 584, 444
3, 675, 206
13, 734,603
2,188,366
2, 804, 484
1, 665,677
3,901,176
381,590
14, 388, 928
5, 340, 8S3
17, 635, 779
2, 567, 956
1, 874, 041
2,305,456
677,162
1, 351, 428
13.0
43.2
3.8
52.6
31,180,619
8, 752, 927
39, 933, 546
6, 208,087
15.5
At latest available dates.
Allied p o w e r s . .
United S t a t e s . .
Central powers.
Neutral powers
Total
15,167, 964
4, 616, 086
33, 537, 434
2, 493,457
2, 820, 421
1,604,190
6,182, 423
. 415,534
55, 814, 941
11, 022, 568 i 66, 837, 509
17, 988, 385
6, 220, 276
39, 719, 857
2, 908, 991
2. 400, 999
2, 429, 392
318,119
1, 602,185
13.3
39.1
6,750,695 j
10.1
55.1
(2) The foreign trade of the United States has been maintained
on a higher and more stable level than that of any other country.
In the subjoined table figures are given showing the volume of
exports during the past two years from five of the principal countriesfin.o'a.o-fir]in world trade.
39
ANNUAL REPORT FEDERAL RESERVE BOARD.
Exports of the United States, United Kingdom, France, Italy, and Japan.
[In millions of dollars at gold parity.]
Date.
January
February
March
April
May
June
July
August
September
October
November.
December
January
February
March
April
May
June
July
August
September
October
November
December
United
States.*
United
Kingdom.1
1919.
623
585
COS
715
604
928
569
64G
595
631
741
682
253
302
350
369
372
375
438
400
480
523
570
639
733
646
820
685
746
631
651
579
605
752
677
721
528
636
616
679
664
664
756
624
637
625
645
532
1920.
France.2
67
08
93
82
98
110
134
139
134
139
255
259
266
233
349
464
415
450
303
321
Italy.
44
51
60
59
57
79
72
88
110
124
113
147
83
103
115
131
128
145
101
103
Japan.
56
62
67
71
78
75
90
112
109
138
88
87
98
109
96
91
77
87
77
67
52
43
1
2
Including reexports.
French foreign tradefiguresfor 1919, and January through June, 1920, are expressed in 1918 value units.
August, September, and October, 1920, figures are calculated at 1919 rates. A change in the methods of
calculating the values for July, August, and December, 1919, and for July, 1920, makes them incomparable
v/ith o th er months.
(3) Prices in the United States have been relatively lower than
those of other countries and the recent declines have been less drastic.
This is demonstrated by the comparative index number table which
appears on page 7 of this report. From the foregoing facts, the conclusion is justified that while the year 1920 was a period of commercial upheaval and financial stringency throughout the world and
of serious disturbances in many countries, it has been far less distressing in the United States than in any other country. These conclusions are, however, of only secondary significance when the fact
is considered that the United States is much stronger in financial
resources and much more self-contained than any other country.
But, however great the economic strength of the United States may
be, it should be remembered that the country's expenditures during
the war and the very profound modifications which have occurred
in its economic system have had such far-reaching results as to make
it imperative that the utmost care be taken to conserve our credit
and protect the basis of our prosperity if we are to avoid the extreme conditions which prevail in other countries. Upon the United
States in large measure the solvency and financial stability of
many other countries depend, This fact greatly increases the responsibility which rests upon the American banking system and calls
45525°—21
4
40
ANNUAL REPORT FEDERAL RESERVE BOARD.
for the exercise of sound judgment and the strict observance of
sound financial and economic principles. The present is not a time
for resorting to empirical remedies which merely deaden unpleasant
sensations temporarily and which, instead of restoring the patient
to health, undermine his strength and destroy his vitality.
MOVEMENT OF THE PItlXCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL
RESERVE BANKS DURING THE YEAR 19 2 0.
The holdings of discounted paper by Federal Reserve Banks
showed a pronounced upward trend throughout the year 1920. The
banks held 2,231 millions on January 2 and 2,719 millions on December 30, an increase of 488 millions for the period. From the
relatively large total shown on January 2, when discounts were heavy
in connection with annual dividend and interest payments, the
banks' holdings of discounted paper receded to 2,080 millions on
January 9. Subsequent to that date there is to be noted a succession
of increases, with high points on February 27, June 4, September 3,
and November 5, and recessions, with low points on March 19, June 18,
September 17, November 19, and December 17, all of the low points
being reported for Fridays following large operations of the Treasury in redeeming certificates of indebtedness and paying interest on
United States bonds of the various issues. The volume of Government securities issued and redeemed through the Federal Reserve
Banks during the }7ear, while smaller than during preceding years
when the Liberty and Victory loans were floated, was still very considerable, the aggregate of Treasury tax and loan certificates allotted
by the Reserve Banks being about 3,851 millions and the total redeemed about 4,960 millions,
While the course of discounts in the Federal Reserve Bank statements has been a series of upward and downward movements, each
successive high and low point has been considerably higher than the
preceding one. In fact, the .September 17 low point is only 55
millions below the high point in the first half of the year, June 4,
while the more recent low points on November 19 and December 17
are higher than the level reached at any date previous to August 20.
Not only is a general upward movement of discounts shown throughout the year, but the growth has been more rapid during the second
half, when the heavy credit demands of the crop-moving season
are reflected in larger borrowings by members from the Federal
Reserve Banks. Thus, while the increase in discounted bills held by
the Reserve Banks between the low point on January 9 and the high
point on June 4 amounted to 484 millions, the increase between the
low point on June 18 and the high point on November 5 was 531
millions.
ANNUAL REPORT FEDERAL, RESERVE BOARD.
41
Another feature of the discount transactions of the Federal Beserve Banks during the year is the decrease in the proportion of paper
secured by Government war obligations, Preferential rates on paper
secured by Liberty bonds and Victory notes were abrogated by some
Federal Reserve Banks and raised by others to a level more nearly
approximating the rate level for ordinary commercial paper. In the
case of paper secured by Treasury certificates the rates adopted were
in most cases identical with the higher coupon rates fixed by the
Government, thus holding out no inducement to the member banks
to carry these securities among their own investments and use them
as collateral for loans at the Federal Reserve Banks, but rather
providing a stimulus to place them in the hands of ultimate investors.
The results are seen in the gradual decrease of the amounts of war
paper held during the year by the Reserve Banks. From nearly
1,500 millions at the opening of the year the holdings of paper
secured by Government war obligations declined to 1,141 millions on
December 30. Of the latter total 188 millions, or 16.5 per cent, were
secured by Treasury certificates, compared with 462 millions, or
over 81 per cent, held at the opening of the year—this decrease corresponding in a general way to the reduction in the amount of certificates held by the member banks. Much smaller reductions are shown
in the Reserve Banks' holdings of paper secured by Liberty bonds
and Victory notes, the December 30 total, 953 millions, being only
70 millions less than the amount reported at the beginning of the
year. On the other hand, holdings of other discounted paper, which
at the opening of the year totaled 747 millions, show an almost
steady growth, being in excess of 1,500 millions at the end of September, and fluctuating between about 1,500 and 1,600 millions during
the last three months of the year. At the end of the year, out of a
total of 2,719 millions of discounted bills, about 42 per cent was
composed of paper secured by United States war obligations, against
67 per cent of a total of 2,231 millions held on the first Friday of
the year.
Acceptance holdings of the Federal Reserve Banks show an
almost uninterrupted reduction for the period under review. From
a total of 575 millions at the beginning of the year, a decline to
256 millions on December 30 is reported, the decrease of 319 millions being due largely to the increased demand for acceptances by
savings banks, trust companies, and by corporate and individual
investors.
Fluctuations in Federal Reserve Bank holdings of Treasury certificates of indebtedness during the year are mainly the result of
the issue and redemption by the Government from time to time of
42
ANNUAL REPORT FEDERAL RESERVE BOARD.
temporary certificates in anticipation of the actual collection of
income tax checks and the withdrawal of funds from depositary
institutions. The highest Friday night figures for the year are shown
for March 19 (410 millions) and September 17 (393 millions), both
these days immediately following dates on which installments of income and excess profits taxes were due. Exclusive of these temporary
certificates and of certificates bought under repurchase agreements,
the Federal Reserve Banks' holdings of Treasury certificates consist
chiefly of certificates deposited as security for Federal Reserve Bank
notes outstanding.
Total earning assets of the Federal Reserve Banks, which were
3,182 millions on January 2, and 2,984 millions on January 9, increased to 3,422 millions on October 15, and on December 30 were
3,263 millions.
Government balances with Federal Reserve Banks were considerably smaller than during the previous year, partly because of a
smaller volume of Government expenditures but also because of the
development of a better system of handling Government funds. The
daily average of Government deposits during 1920 was 36 millions,
compared with 99 millions the year before. The lowest amount of
Government deposits is shown for August 10, when the total was only
7 millions, while on September 17, subsequent to the payment of the
September 15 installment of income and excess profits taxes, the
highest figure of the year—135 millions—was reached. Member
banks' reserve deposits fluctuated within comparatively narrow
limits, the largest total—1,944 millions—being held on January 16
and the lowest—1,712 millions—on November 26. Other deposits,
including foreign Government credits, declined from 116 millions on
January 2 to 22 millions on December 30, mainly as the result of
withdrawals by the Argentine Government of deposits made during
the war. Net deposits held by the Federal Reserve Banks showed a
general downward tendency for the year, the total on December
30—1,604 millions—being 280 millions below the maximum amount
held on February 27. Reductions in reserve deposits of Federal
Reserve Banks correspond to reductions in deposit liabilities of
member banks, especially during the latter portion of the year.
The larger borrowings from Reserve Banks in recent months have led
to increased Federal Reserve note circulation rather than to increased
deposit liabilities of the Reserve Banks,
Federal Reserve note circulation, after the usual contraction at
the beginning of the year, when a return flow of notes used during
the holiday season occurs, shows an almost uninterrupted expansion.
The minimum amount of 2,844 millions appears on the statement for
•ANNUAL REPORT FEDERAL RESERVE BOARD.
43
January 23 and the maximum of 3,405 millions on December 23. The
amount outstanding on December 30 marks a reduction of 60 millions
from the high point on December 23, but an expansion of 345 millions from January 2. The circulation of Federal Reserve Bank
notes declined from 259 millions on January 2 to 177 millions on
May 14, but since that date an increase to 217 millions on December
30 is noted.
Movement of principal assets and liabilities of all Federal Reserve Banks, by weeks, during 1920.
[Amounts in thousands of dollars.]
Resources.
2
1
3
Liabilities.
4
5
6
7
Discounted paper.
Date.
Secured by Otherwise
secured
Government war
and
obligations. unsecured.
Jan.
Feb.
Mar.
Apr.
May
June
2
9
16
23
30
6
13
20
27
5
12
19
26
2
9.
16.
23
30
7
14
4
11
18
25
1,484,262
1,352,085
1,351,454
1,386,348
1,457.892
1,451)557
1,469,562
1,525,203
1,572,980
1.520,494
i) 515,959
1,353,509
1,441,015
1,400,664
1,410,069
1,430,888
3,448,804
1,465,320
1,444,175
1,503,104
1.440,723
1,447,962
1,433,415
1,440)931
1,231,841
1,277,980
746,925
727,670
748,611
767,110
716,465
751,982
823,873
833,321
880,531
888,194
907,487
854,172
1,008,215
999,849
957,469
980,303
1,029,378
1,009,751
1.060,447
1.043,186
1,053,663
l)071,469
1.130,843
1,082,019
1,064,296
1,153,814
Per cent
(l-*-3).
Total.
2,231,187
2,079,755
2,100,005
2,153,458
2,174,357
2,203,539
2,233,435
2,358,524
2,453.511
2,408)688
2,423,446
2,207)681
2,449,230
2,400,513
2,307,538
2,411,191
2,478)182
2,535,071
2,504,622
2,551.290
2,500)386
2,519,431
2,564,258
2,522,950
2,296,137
2,431,794
66.5
65.0
64.4
64.4
67.0
65.9
64.1
64.7
64.1
63.1
62.6
61.3
58.8
58.3
59.6
59.3
58.5
57.8
57.7
59.1
57.9
57.5
55.9
57.1
53.6
52.6
Bills
bought
in open
market.
574,631
574,722
575,675
575,789
561.313
55-i) 750
542,6C0
531,703
531,367
513,854
504,172
463.232
451)879
424,041
422/2-il
416,784
404,072
407,247
409,834
413,292
417,3C8
418,CCO
410,CSS
403,896
398,591
399,185
Total cash
reserves.
2,121,272
2,102,099
2,104,281
2,087,896
2,073,933
2,054,656
2,052,513
2,035,440
2,083,215
2,054,630
2,056,730
2,000,323
2,057,155
2,080,428
2,087.306
2,087)731
2,083,568
2,070,705
2,076,087
2,078,393
2,079,538
2,092,496
2,098,940
2,102,591
2,1C0,900
2,108,605
Net
deposits.
1,851,133
1,715,892
1,819,061
1,817,843
1,806,496
1,765,524
1)787,245
1,785,797
L884)576
l'. 792,393
1'. 798', 110
1)688,032
1,772,904
1,774,269
1)742,139
1,752,675
1,773,587
1,812,732
1,774,297
1,839)355
1,784.379
1,794)440
1,807,175
1.779,133
1)617,603
1,722,223
Ratio of
cash
Federal
reserves to
Reserve net deposit
notes in and Federal
actual
Reserve
circulation.
note
liabilities
combined.
2,998,992
2,914,308
2,849,879
2,8-44,227
2,850,944
2,891,775
2,959.087
2,977i124
3,019'. 984
3,030,010
3) 039;750
3., 047', 133
3)048)039
3,077,323
3,080.217
3,073,693
3,068,307
3,074.555
3,092)344
3,088,234
3,085,202
3,107,021
3,127,291
3,112,205
3,104,810
3,116,718
43.7 I
45.4 I
45.1
44.8
44.5
44.1
43.2
42.7
42.5
42.6
42.5
43.5
42.7
42.9
43.3
43.3
4,3.0
4.2 4
42.7
42.
42.7-V i
42.7
42.5
43.0
44.5
43.6
Federal
Reserve
Bank
notes.
in circulation,
net
liability.
O
8
258,561
259.099
258)482
254,843
250)530
24.8,780
245,810
240,858
237,131
220^738
211,132
201,392
196.594
190)157
136.501
180,631
177,881
177,972
176,805
177,371
179,185
181,252
182,382
183,904
185,604
Pi
W
2
9
16.
23
30
Aug. 6
13.
20
27
Sept. 3 .
10
17
24.
1
Oct.
8.
15
22.
29
Nov. 5 .
12...
19
26.
Pec. 3 . . . .
10
17
23
30
July
.
.
1,294,892
1,296,350
1,256,258
1,247,371
1,241,017
1,285,398
1,296,981
1,301,609
1 314 830
1,332', 892
1,299,123
1 202,593
1,220,423
1 183 017
1,217,098
1,192,810
1 199,139
1,203,905
1,215,101
1,180,977
1,158,907
1,192,425
1,160,685
1 169 244
1 158,974
1,177,263
1,141,036
2,-545,194
2,561,593
2,490,148
2,469,907
[,250,613 2,491,630
2,549,833
l,1,264,435
1,292,025 2,589,006
1,320,820 2,622,429
i1,352,297
2,667,127
1,412.035 2,744,927
l,
[, 376', 076 2,675,199
2,509,203
i1,306,610
1,484,041 2,704,464
2,709,601
2'1,526,584
1,578,573 2,795,671
L, 581,060 2,773,870
1,550,143 2,749,282
2,801,297
11,597,392
2,826,825
1,1,611,724
2,784,750
11,603,773
1,514,467 2,673,374
2,735,400
1,1,542,975
2,776,801
1,1,616,116
2,716,839
11,547,595
1,437,775 2,596,749
2,731,691
ij1,554,428
1,578,098 2,719,134
1,250,302
1,1,265,243
1,1,233,890
^[,222,536
)
• \
•
)
^
50.9
50.6
50.4
50.5
49.8
50.4
50.1
49.6
49.3
48.6
48.6
47.9
45,1
43.7
43.5
43.0
43.6
43.0
43.0
42.4
43.3
43.6
41.8
43.0
44.6
43.1
42.0
390,085
372,591
356,471
353,5-13
345,305
339,390
320,618
320,597
321.965
313,501
316,982
321,605
307,624
301,510
305,690
319,520
300,666
298,375
299,769
287,854
275,227
247,703
243,055
244,690
234,609
241,167
255,702
2,109,501
2,108,193
2,119,047
2,134,012
2,128,640 !
2,131,744
2,132,885
2,121,837
2.127,827
2,117,957
2,131,247
2,133,145
2,151,594
2,165,195 .
2,158,268 !
2,154,911
2,157,270
2,168,038
2,169,729
2.180,011
2,180,228
2,195,310
2,198,195
2}212,40i7
2,222.4C8
2,236,754
2,249,163
1,755,996
1,707,869
1,686,941
1,685,644
1,697,245
1,698', 480
1,692,450 i
1,702,310 |
1,717,867 '
1,735,OSS
1,679,417
1,578.287
1,658', 464
1,645', 830
1,710,170
1,694,130
1,624,646
1,674,553
1,694,923
1,674,764
1,632,740
1,623,641
1,667,258
1,662,301
1,542,594
1,549,348
1,604,190
3,168,814 |
3,180,948
3,135,863
3,318,205
3,120,138
3,141,861
3,169,181
3,174,725
3,203'637
3,243,270
3,295,185
3,289,881
3,279,996
3,3C4,690
3,322,123
3,353,271
3.350,199
3,351,303
3,354,180
3,328,985
3,307,435
3,325,538
3,312,039
3,311,842
3,344,332
3,404,931
3,344,686
42.8
43.1
43.9
44.4
44,2
44.0
43.9
43.5
43.2
42.5
42.8
43.8
43.0
43.7
42.9
42.7
43.3
43.1
43.0
43.6
44.1
44.4
44.1
44.5
45.5
45.1
45.4
189,232
190,287
189,375
190,067
192,168
194,834
196,912
198,563
200,793
205,423
209,073
212,219
214,180
213,412
213,154
213,533
213,888
214,961
214,533
215,080
213,8S1
214,610
214,939
214,523
217,434
218,832
216,980
O
o
46
ANNUAL REPORT FEDERAL RESERVE BOARD.
MOVEMENT OF RESERVES AND RESERVE RATIO.
During the early part of the year the Federal Reserve Banks lost
gold, largely through export to South America and the Orient, and
on March 26 total gold holdings were 1,935 millions, a reduction
of 128 millions from January 2. Since that time, chiefly as the result
of gold shipments from England in anticipation of the maturity of
the Anglo-French bonds on October 15, there has been an increase in
gold reserves, the total of 2,059 millions on December 30 being only
4 millions below the total of 2,063 millions shown at the beginning
of the year. During the year the amount of gold held with foreign
agencies was reduced from 131 to 3 millions. All of the gold
received in payment for food supplies sold to Germany, which was
placed in custody with the Bank of England during the fall of
1919, has been withdrawn and brought to this country. As this gold
was counted as part of the banks' reserves, its transfer from London
to this country has had no effect on their reserve position. The 3.3
millions of gold now held abroad is in custody of the Bank of France,
pending shipment. Total cash reserves show an increase of 128
millions, or from 2,121 millions on January 2, to 2,249 millions on
December 30, a larger gain in other cash reserves arising chiefly from
deposits of silver dollars by the Treasury being partially offset by
the loss of 4 millions of gold.
The reserve ratio of the Federal Reserve Banks, as a consequence
of the changes detailed above5 is somewhat higher at the end of the
year than at its beginning, the percentages being' 45.4 on December
30, as compared with 43.7 on January 2. A rise of 1.7 points for the
week ending January 9, due partly to the return flow of Federal
Reserve notes following the Christmas holidays, was followed by
a slow but steady decline, with some fluctuations, to 42.2 per cent on
May 14. A sharp rise brought the ratio up to 44.5 on June 18, the
Friday following large redemptions of tax certificates by the Treasury. Since June 18 the reserve ratio has fluctuated within lower
ranges, falling as low as 42.5 per cent on September 3, but rising to
45.5 per cent on December 17, due mainly to gains in gold and reduction in net deposits.
Eight of the Federal Reserve Banks at times during the year
showed slight temporary deficiencies in their reserve against deposits,
and by direction of the Board paid to the United States Treasurer as
a penalty, under provisions of paragraph (c) of section 11 of the
Federal Reserve Act, total amounts as follows:
Boston
New York
Atlanta
Chicago
Minneapolis
•
$288. 56
23, 301.10
181.08
147.15
78. 48
ANNUAL EEPOET FEDEKAL RESERVE BOARD.
Kansas City
Dallas
San Francisco
Total
47
—
$95. 91
74.33
547. 44
24, 664. 05
It may be of interest to note that at the Bank of England the ratio
of reserves to note and deposit liability combined, if calculated on a
basis similar to our own, has been maintained during the year on a
level approximately the same as that of the Federal Reserve Banks,
though the English ratio is subject to wider and more rapid fluctuations caused chiefly by Government operations in selling Treasury
bills and obtaining ways and means advances, on the one hand, and
by redemptions of these short-term obligations, on the other. In
general, the ratio of the Bank of England, if figured on our basis,
has fluctuated during the year between 40j and 50 per cent. On
December 29 it stood at 39.7 per cent, comparable with a ratio of 45.4
per cent, shown on December 30 for the Federal Reserve Banks.
INTERBANK PURCHASES OF ACCEPTANCES AND REDISCOUNT OPERATIONS.
During the past year, as in 1919, the rediscounting between Federal Reserve Banks of discounted paper and sales of purchased bills,
in order that Federal Reserve Banks having low reserves might extend further accommodations to their member banks and still maintain their minimum reserve requirements, has been continuous. In
the early months of the year these operations were occasioned by the
need of funds in the eastern Federal Reserve districts for the purpose of financing industrial activities and purchasing raw materials,
as well as to aid the fiscal operations of the Government; and, from
early spring throughout the balance of the year, by the demands in
the western and southern agricultural districts for funds and credits
to be used in financing the growing, harvesting and marketing of
crops, and in feeding and marketing live stock.
The volume of these transactions, which increased steadily during
the year, reached the peak in October when the Federal Reserve
Banks of New York, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, and Dallas had under rediscount, including
bankers' acceptances sold, with the Federal Reserve Banks of Boston,
Philadelphia, Cleveland, and San Francisco, a total of $267,378,000.
From early spring throughout the remainder of the year the demand for funds in the eastern industrial centers abated, resulting
in continued reduction in the demands by member banks for accommodations at Federal Reserve Banks. In consequence, since early
in May no eastern Federal Reserve Bank, other than that of New
York as noted below, has been a borrower from other Reserve Banks.
Member banks in New York City have experienced heavy withdrawals of funds by their interior and southern correspondents in the
48
ANNUAL REPORT FEDERAL RESERVE BOARD.
agricultural sections,, with the result that it has been necessary for
New York member banks to rediscount heavily with their Federal
Reserve Bank. These withdrawals, evidenced by almost continuous
losses through the gold settlement fund, have caused the Federal
Reserve Bank of New York to rediscount with other Federal Reserve
Banks from time to time since July in substantial amounts.
All of the Federal Reserve Banks, with the exception of those of
Cleveland and Richmond, have both extended accommodation to and
received accommodation from other Federal Reserve Banks during
the year. While the Federal Reserve Bank of Cleveland has discounted continuously for several of the other Federal Reserve Banks,
the Federal Reserve Bank of Richmond has been a continuous borrower from other Federal Reserve Banks except for a short period in
February and March.
The same spontaneous spirit of cooperation between the Federal
Reserve Banks in entering into these transactions, referred to in the
last annual report of the Board, has continued throughout the year,
and it has been unnecessary, therefore, for the Federal Reserve
Board, in any case, to exercise its statutory power to require such
operations. The same efficient methods of consummating these transactions, with the employment of the leased telegraph-wire system
and the settlement of all payments through the gold-settlement fund
"without any physical transfer of gold, described more completely in
the last annual report of the Board, have been continued,
In the following table is shown the amount of inter-Federal Reserve Bank accommodation and the actual and adjusted reserve percentages of each Federal Reserve Bank as of December 26, 1919, and
December 30, 1920:
[Amounts in thousands of dollars.]
Bills discounted
for or purchased
from other Fedother
Federal i
eral R e s e r v e
Reserve Banks. |
Banks.
^ithTSSdto \
Federal Reserve
Bank.
Dec. 26,
1919.
Boston....
N ew York
Philadelphia
Cleveland
Richmond
Atlanta..
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
I
|
69,899
58,201
27,615
Dec. 30, I Dec. 2
1920.
1919.
16,575
6,917
10,000 |
33,659
13; 000
I 168,715
1
Dec. 30,
1920.
14,801 i
29,086
27,711
122,174
12,265
5,080
5,065
60,090
29,022
9,805
32,123
15,265
17,109
81,573
6,917
108,715 | 122,174
Ratio of total reserves to combined net
deposit and Federal Reserve note
liabilities.
Actual.
Dec. 26,
1919.
Adju
Dec. 30,
1920.
Dec. 26,
1919.
Dec. 30,
1920.
Per cent. Per cent. Per cent. Per cent.
55.3
44.0
24.3
59.5
40. Q
40.0
36.2
39.5
40.8
54.2
32.7
58.7
46.3
59.1
49.4
75.9
40.9
45.4
43.5
40.3
52.8
40.7
55.2
24. 8
50.6
40.4
58.8
40.4
46.5
44.5
60.5
44.5
39.4
39! 8
39.4
27.7
43.1
41.4
41.3
25.2
49.4
77.0
41.8
17.5
54.9
49.3
59.3
51.1
44.8 I
45.4
44. 8 i
45.4
Adjusted percentages are calculated after increasing or reducing reserves held by the amount of accommodation extended to or received from other Federal Reserve Banks.
ANNUAL BEPORT FEDERAL, RESERVE BOARD.
49
As has been stated elsewhere in this report, there has been a continuous growth and development in the acceptance market in New
York, which is the principal acceptance market of the country, and
the Federal Reserve Bank of New York, in support of this market,
has heQTi a daily purchaser of bills.
Under an agreement approved hy the Federal Reserve Board, for
the purpose of distributing* the load in connection with the development and support of the open market in New York, the Federal
Reserve Banks of Cleveland, Chicago, and San Francisco have participated daily in the open-market purchases of the Federal Reserve
Bank of New York. The Federal Reserve Bank of San Francisco
also purchased additional bills from the Federal Reserve Bank of
New York from time to time as it had surplus funds available for
investment.
In order to maintain the open market for bankers' acceptances
it has been necessary for the Federal Reserve Bank of New York, as
already stated, to make daily purchases of bankers' acceptances, and,
very often, to make heavy purchases at times when its own reserves
were at their minimum legal limits. Accordingly, at such times,
other Federal Reserve Banks having surplus funds, with the approval of the Federal Reserve Board, have made large purchases
of bankers' acceptances from the New York Reserve Bank. In cases
where Federal Reserve Banks have of their own initiative purchased
acceptances from other Federal Reserve Banks with the approval of
the Board the indorsement of the selling bank usually has not been
given, but where the Board has requested a Reserve Bank to rediscount bankers' acceptances for another, the selling bank has been
required to indorse the bills sold.
The total open-market purchases of acceptances by the Federal
Reserve Bank of New York amounted to $2,429,982,000, of which
$782,652,000 were immediately allotted to other Federal Reserve
Banks in the amounts indicated in the table below.
Rediscount operations between Federal Reserve Banks including
bills purchased from other Federal Reserve Banks during the year
have amounted to $3,672,792,000, as compared with $2,658,254,000
daring the year 1919, and $660,638,000 during the year 1918. Adding
to these transactions the bills purchased and allotted to other Federal
Reserve Banks by the Federal Reserve Bank of New York, the
total interdistrict movement of bills during the year aggregated
$4,405,444,000, as compared with $3,397,753,000 for 1919, and
$835,498,000 for 1918. The figures in detail appear in the following
table:
50
ANNUAL EEPORT FEDERAL RESERVE BOARD.
Inter district movement of discounted and purchased paper "between Federal
Reserve Banks during the period from Jan. 1 to Dec. SI, 1920.
[In thousands of dollars.]
Inter-Reserve Bank rediscounts and
sales cf—
Discounted paper.
Federal Reserve
Bank of—
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Rediscounted
by-
Discounted
for—
375,000
371,600
969, 884
479, 581
144, 579
1, 406,172
700,000
307, 997
255, 000
309, 499
293, 500
411,638
436,013
52,000
168, 500
13,000
40, 029
20,000
143, 000
23, 500
3,460, 245 3,460, 245
Purchased paper.
Sold
by-
20,846
147, 215
50
28,178
6,000
Purchased
by-
30,673
11,067
35,149
72,710
Acceptances purchased in open
market for account of other
Federal Reserve
Banks.
By-
212, 547
212, 547
732, 652
Excess
movement
to—
986,280
764, 219
191, 872
242,000
325
400
217,642
250
375
450
500
264,141
5,049
47, 722
Excess
movement
from—
6,569
732,652
5,087
5,090
10, 258
For account
of—
Net infcerdistrict
movement of discounted and purchased paper.
1,120,832
699,675
250, 510
108,054
302,249
253,096
386.137
292,513
732, 652 3,140, 271
325,105
3,140,271
DEVELOPMENT OF THE ACCEPTANCE MARKET.
Appreciable progress has been made during the past year in the
development and broadening of the market for bankers' acceptances.
While the Federal Reserve Banks have continued to be the greatest
influences in this market, the higher rates commanded by credit
throughout the world have resulted in a substantial broadening of
the market for prime dollar acceptances. As commercial and Reserve Bank rates have advanced, bankers' acceptances have been
offered on a relatively higher basis and this fact, coupled with the
better understanding of their liquidity and desirability as secondary
reserves, has gradually added to the list of those who are accustomed
to invest surplus or idle funds in this form of security. While in
former years only a comparatively small number of the larger and
better-informed banks made a practice of buying acceptances, the
bill dealers now have as their customers many corporations, firms,
and individuals, in addition to an increased number of banks, large
and small. Several State legislatures have amended banking laws
by specifying bankers' acceptances as eligible investments for savings
banks, thus opening a new channel for the distribution of acceptances. During a greater part of the year dealers have reported an
improved demand, especially for bills accepted by the best-known
banks, and have offered such bills unindorsed at a discount rate of
from 6 to 6f per cent for various maturities. While the market
ANNUAL REPORT FEDERAL RESERVE BOARD.
51
has been characterized by a more rapid turnover than formerly,
the Federal Reserve Banks in some of the larger centers have found
it essential to lend active support to the market and have continued
the practice of carrying for dealers a part of their holdings for 15day periods under a repurchase agreement, pending distribution.
The purchases of bankers' acceptances by all the Federal Reserve
Banks were larger during 1920 by approximately $300,000,000 than
in 1919. This increase is not excessive or remarkable, however, when
consideration is given to the large volume of business transacted
which called for acceptance credits by banks and bankers. The principal market into which bankers' acceptances flow from the entire
country is New York and it follows, therefore, that the Federal
Reserve Bank of New York must bear the brunt of the burden of
sustaining and developing the market. This bank during 1920 purchased bankers' acceptances for its own account and for the account
of other Federal Reserve Banks in value about $479,084,000 greater
than in 1919, this increase for the New York bank being largely offset
by decreases in amounts of open-market purchases by other Federal
Reserve Banks within their own districts. The pressure upon the
Federal Reserve Bank of New York, caused by these purchases, has
been relieved and distribution of bills effected by sales to member
banks and by allotments to other Federal Reserve Banks. The development of the acceptance market in New York has been aided also
by the special acceptance service offered to its member banks by the
Federal Reserve Bank of New York. The bank purchases for its
member banks indorsed bills of the kinds and maturities which it is
accustomed to purchase for its own account, carries them in custody,
sells them when desired and collects them at maturity. This service
is rendered without charge and has made it easy for any member
bank to keep excess funds employed constantly and profitably through
continued or occasional investments in prime bills. During the year
the Federal Reserve Banks of New York, Philadelphia, Cleveland,
Chicago, and San Francisco purchased acceptances in a larger amount
than in 1919, while the Federal Reserve Banks of Boston, Richmond,
Atlanta, St. Louis, Minneapolis, Kansas City, and Dallas purchased
smaller amounts than in the preceding year.
Although decreases are noted in the volume of purchases made by
the Federal Reserve Banks of Boston and Richmond, these two institutions have accomplished good results in popularizing acceptances as investments for their member banks. The result of these
influences combined has been apparent in the increase during the year
by over 100 per cent in the number of bill buyers in the Boston Reserve
Bank district. The Federal Reserve Bank of Richmond continued
the practice of buying unindorsed bills direct from the acceptors at
commercial paper rates, feeling that this policy is warranted as it
52
ANNUAL REPORT FEDERAL RESERVE BOARD.
keeps the bank well informed as to the methods used in giving acceptance credits by its member banks. This bank also purchases
acceptances for member banks, the names of the acceptors being
specified by the bank for whose account purchase is made, I t is
believed that the reduced volume of bills offered this bank during
the past year is the result of efforts which have been made to induce
member banks to sell their acceptances to dealers rather than to the
Federal Reserve Bank.
As a ride, member banks of the South, Southwest, and some portions of the West have used their acceptance powers to a limited
extent only, and the Federal Reserve Banks of Atlanta, St. Louis,
Minneapolis, Kansas City, Dallas, and San Francisco report that
acceptances are being bought almost exclusively by banks in the
larger centers.
The Federal Reserve Bank of Philadelphia purchased approximately $27,183,000 more of bills in 1920 than in 1919, and has succeeded during recent months in developing a broader market for
bills in its district. Reports from the Federal Reserve Banks of
Cleveland and Chicago indicate that their markets have been enlarged during the past year, mainly through the efforts of their
member bank relations departments. In Chicago the volume of sales
and distribution, according to dealers' reports, is showing steady increase, comparative sales in the Chicago district made month bymonth during 1919 and 1920 showing an increase of over 100 per
cent in volume of sales and of 150 per cent in the number of purchasers.
When consideration is given to the important part played by
bankers' acceptances in the movement of farm products and manufactured goods to market, the Board feels that the efforts being made
to broaden the bill market will meet with general approval.
Below are shown the amounts of acceptances bought in the open
market b}7, or for the account of, each Federal Reserve Bank during
the past four years:
Bills houf/ht in open market.
[Amounts in thousands of dollars.}
Federal Reserve Bank.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. I/Ouis
Minneapolis
Kansas City....
Dallas
*.....
San Francisco.,
Total..
1917
1018
86,481
445,307
70,710
5i;007
54,759
25,388
61,142
22, 788
16,397
17, 561
9,743
48,018
194,158
045, 403
77,686
122,800
70, 766
45t477
122,787
26,096
13,903
14,691
25,024
150,653
909,301
1,809,539
1019
1920
360,784
1,211,390
14,049
261,750
52,977
51,661
292,012
87; 503
108,714
26,086
12, 415
345,827
304,445
1,697,330
41,232
204,602
51,712
39,576
345,021
36,020
18,060
17,173
8,348
364, S45
2,825,177
3,218,364
A N N U A L REPORT FEDERAL RESERVE BOARD.
53
CANCELIATIONS,
To some extent throughout the entire year 1920, but with an increasing degree of importance during the latter part of the year, the
matter of cancellation of contracts has assumed a sinister significance
in American foreign trade, The practice is one which has affected
both the commercial and banking aspects of the situation. Cancellations have been, numerous in important exporting lines, while the
action, of some American importers in cancelling orders for textiles
which they had placed in England caused so much inconvenience
and aroused such criticism as to lead to an appeal in November last
by organized textile trades of the United Kingdom to the United
States Chamber of Commerce. Certain phases of the practices which
have developed within the past few weeks especially have raised at
least two serious questions:
1. How far have cancellations resulted in leaving considerable
quantities of American goods without actual buyers in the countries
to which the goods have been shipped ? and
2. How far have cancellations affected the status of drafts drawn
against letters of credit issued by American bankers?
The facts relating to cancellations have been reviewed in a report
filed with the Chamber of Commerce of the State of New York on
December 3, reading as follows:
The wave of cancellations of buying orders and repudiations of contracts of
sale by buyers which at present is sweeping the world and is menacing also the
United States, lias called forth a great concern in business and banking circles.
The dangers of the situation have been called to the attention of your committee on finance and currency, and a request made that an investigation into
the situation be made. Accordingly, data were collected from large trade associations, covering the United States in various lines of business, upon the
volume and character of cancellations and their comparison with previous
years.
The result of this investigation, which has been printed in the November issue of the Chamber's Bulletin, showed that, in many lines, cancellations were
of a very important and menacing volume.
It seems obvious that loose business' methods which enable purchasers to
reject goods when prices decline and to insist upon prompt shipments according to contract when prices are rising, will cause a perilous business derangement at every downward turn. The uncertainty created by the sway of such
vicious practices extends far beyond the two parties immediately affected. It
spreads like a contagious disease and ultimately undermines and menaces the
safety of all branches of production, trade, and finance of the country; for
our whole economic structure rests upon a contractual basis and upon a clear
recognition of the sanctity of business obligations. Steps should be taken to
remedy this evil. The discipline of a written contract enforceable at law
should be more generally applied, together with a nation-wide vigorous condemnation of those indulging in such objectionable business practices.
54
ANNUAL KEPOKT FEDEKAL, RESERVE BOARD.
Your committee, therefore, offers the following resolutions:
Resolved, That the Chamber of Commerce of the State of New York deprecates
the present tendency among many buyers of goods to cancel their orders or
repudiate their contracts; and be it further
Resolved, That an effort should be made on the part of the business community to incorporate into written contracts a frank stipulation respecting cancellations, in order that business may be established on a clear and definite
contractual basis, and that the possibilities of misunderstanding and disagreement may be lessened and an element of dangerous uncertainty be removed;
and be it further
Resolved, That the chamber of commerce urge upon the business and banking
communities that buyers who disregard their written agreements shall be considered as being lacking in business morality and as undeserving of confidence,
and that business and banking leave no doubt that attempts willfully to violate
contracts shall be frowned upon as violating the code of business ethics on which
rests the entire structure of American industry, commerce, and trade.
Exact figures as to the probable scope of the cancellation evil can
not be secured at this time, but it may be stated that the practice
has become so common as to affect seriously the ability of American
exporters to collect against their shipments to foreign ports. The
most acute aspects of the situation are seen in those countries which
have found it practically impossible to ship their goods at profitable
rates to the United States or which have had so unfavorable a domestic credit position that they have felt it necessary- to establish moratoria—with or without legal sanction. This situation has affected
particularly our trade with South America and the Orient. At some
ports a large volume of American goods has accumulated wThich
consignees have declined to receive. For such shipments, therefore,
there is available neither dollar exchange nor local bank credit. Reports from Brazil, Argentina, Paraguay, and Cuba emphasize this
aspect of the situation and show that important exportations have
brought no returns, the goods being practically thrown back upon
the hands of shippers who have been obliged to finance themselves
as best they might at their own banks. One result of this condition
has been a certain amount of mortality among exporting houses, while
others have been obliged to lean more heavily upon the banks than
they would otherwise have found it necessary to do.
While such conditions are of grave consequence from the banking
standpoint at a time when world finance and trade conditions are
seriously disturbed, and when the maintenance of the export trade
is so vital, the resultant situation has peculiar significance to the
banks because of the influence it exerts upon acceptance conditions.
It will be remembered that prior to the enactment of the Federal
Reserve Act, American banks in foreign transactions had always relied mainly upon credits furnished by British banks and stated in
terms of sterling. As the result of the growth of the number of accepting banks under the Federal Reserve Act and the effort to convert
REPORT FEDERAL RESERVE BOARD.
55
our foreign credit as far as possible into terms of dollars there has
devolved upon our institutions a new responsibility in connection with
financing of foreign trade. This was recognized from the first as one
of the advantages of a revision of the banking system, American
banks have not only been encouraged to enter the acceptance field,
but the argument has frequently been made that they ought to do so in
order that the financing of American business might not rest so
largely in the hands of foreigners. Owing to the great changes
brought about by the war it has also been asserted that the adoption
of this method of financing was really necessary in order to meet the
emergencies which the contest had created. In undertaking such
financing American bankers have in many instances issued letters of
credit covering importations into the United States. The terms and
conditions of the credits thus opened have, of course, varied considerably, since there is no uniform practice among the banks of the
country with respect to the wording of document's used in their
foreign trade operations. The letters of credit which have been issued are in many cases, however, irrevocable, and provide for the
acceptance of drafts drawn on time or the payment of drafts drawn
at sight, with such conditions and requirements regarding the character of the documents to be attached as are usual in the movement
of consignments in international trade.
The sudden fall of prices which has occurred in many lines has,
however, caused many importations to show very material decreases
in value between the time of their shipment from the foreign port
and their arrival in the United States or between the time they were
contracted for under agreements that letters of credit be furnished
and their arrival. In some instances the presentation of drafts
with the documents attached to the banks which had issued the
letters of credit obviously meant that these banks were asked to
make payments against the goods covered by the invoice, which, as
already explained, may have fallen seriously below their value at the
time they were shipped or contracted for. Many of these credits
had been opened by large banks at seaports at the request not of
their own depositors but of interior banks. As these institutions
usually operated no foreign-exchange departments of their own it
was customary for them to ask some correspondent bank, located at
a port of entry, to issue letters of credit for account of their own
customers. The question, consequently, arose in the minds of many
bankers whether the engagements undertaken in letters of credit
could be avoided, and this idea has had a color of justice in those
cases where goods and documents forwarded by exporters in foreign
countries did not technically comply with the conditions set forth in
the terms of the letters of credit. At the solicitation of their country
correspondents some bankers have declined to accept drafts drawn
45525°—21
-5
56
ANNUAL REPORT FEDERAL RESERVE BOARD.
under letters of credit already outstanding, while in other cases, importers themselves, desirous of avoiding loss or feeling that some
breach of contract had occurred, have obtained injunctions against
the banks which had issued the letters of credit directing the banks
not to pay out funds under the terms of such letters. Several injunction cases of this kind are now pending in the Federal courts.
Twenty-four injunctions were vacated on December 15 in the Supreme Court of the State of New York.
This situation is most unfortunate and is reflecting very seriously
upon American bankers5 acceptances. It makes plain that many
American bankers, including, of course, their legal advisers, are not
well informed as to the obligations assumed when irrevocable or confirmed letters of credit are issued.
In the financing of an importation there are several possible combinations of parties at interest. Although a shipment is made direct
by the exporter in a foreign country to the importer in the United
States, the seller does not usually rely upon the unsupported
credit of the foreign buyer and generally requires a bank guaranty. The importer, therefore, calls upon his bank to lend its
credit to the transaction and thus the exporter is given the
right to draw upon a banking institution instead of a commercial
house. But even this added responsibility does not always satisfy
the exporter, who may prefer funds in his own country, and, in this
event, the American bank requests a correspondent foreign bank to
notify the exporter that it will negotiate his drafts. He may, therefore, sell his bills of exchange either to the notifier or to his own
local bank. Hence, a letter of credit may involve such different
parties as the importer, credit issuer, notifier, negotiator, &ny indorser
of the completed drafts, and lastly the exporter.
The legal relations between these parties have been quite definitely
settled by certain British and Colonial cases rendered during the
last half century, when Great Britain was extending her trade all
over the world. The decisions in these cases involving commercial
letters of credit established the following principles:
(1) A letter of credit is not a negotiable instrument.
(2) It does not create a trust fund in favor of the beneficiary.
(3) An issuer of a letter of credit may not dishonor drafts
presented by a negotiating bank under a clean, irrevocable letter
of credit if all the terms of the credit are fulfilled.
(4) An issuer may dishonor bills drawn in violation of the
conditions specified in a documentary letter of credit,
(5) The negotiator is not liable for the genuineness either of
goods or documents.
(6) The issuer is responsible to the party requesting the
credit for the observance of the conditions by the beneficiary.
ANNUAL, EEPOET FEDERAL EESEKVE BOARD.
57
The further principle is established also by the British cases and
confirmed by two decisions recently made by New York courts:
(7) The contract between the issuer and the beneficiary is
entirely independent of the contract of sale between the buyer
and seller, and the issuer can not, because of the seller's breach
of the contract of sale, refuse to honor drafts which comply with
the terms of the letter of credit,
Only recently have American courts had occasion to pass upon
cases relating to commercial letters of credit where the issues involved have been fully presented. Upon principle, however, and
judging from the few decisions which have been rendered by our
courts within the last year, there appears to be no reasonable doubt
that the practices which have evolved under British law will be
found to govern in our own transactions, Such a development will
be necessary if American credits are to command the respect abroad
necessary to compete with those given by foreign banks which engage
in financing international trade. Otherwise buyers of bills in foreign countries would decline to purchase drafts on American
bankers.
The Federal Reserve Bulletin for February, 1921, will contain
fuller discussion of the legal relations between the parties to commercial letters of credit as established by the cases which have been cited
by the British courts, and will contain also a review of the leading
British cases upon this subject and of the few important decisions
which have recently been rendered by American courts,
CHANGES IN DISCOUNT KATES DURING 19 20,
During the latter part of 1919 the Federal Reserve Banks had,
with the approval of the Federal Reserve Board, abolished preferential rates formerly obtaining on paper secured by Liberty bonds
and Victory notes and in January, 1920, shortly after the Treasury
raised its rate on certificates to 4 | per cent, the Board approved a like
increase in the rate, of discount on paper secured by certificates of
indebtedness as well as, in the case of most of the banks, on trade
acceptances offered for discount. Thus for a time the rates on commercial paper proper and on paper secured by all classes of Government war obligations were practically on a parity. Toward the end
of January, however, the rate on paper secured by Liberty bonds
and Victory notes was advanced to 5J per cent and the rates on all
classes of commercial paper, including trade acceptances and agricultural and live-stock paper, to 6 per cent. A preferential rate of
5 per cent was established on bankers' acceptances, to apply, however, only where the acceptances were offered to the Federal Reserve
Bank for rediscount by a bank other than the accepting institution.
58
ANNUAL REPORT FEDERAL RESERVE BOARD.
Eight of the Reserve Banks advanced this rate to 5 J per cent in April
and May, while five banks, including two of those which had advanced the rates in April and May, raised it to 6 per cent in June and
July. Rates on commercial paper and on agricultural and live-stock
paper were advanced in June to 7 per cent by four banks, and the
trade acceptance rate to the same level by three of the same banks,
the fourth bank advancing it to 6J- per cent. Bates on paper
secured by Treasury certificates of indebtedness have been raised
frequently during the year in keeping with the Board's policy to have
such rates correspond with the rates borne by the certificates themselves, thus enabling the banks to carry the certificates without loss
pending their distribution to customers, but offering them no inducement through a spread in rates to retain the certificates as an
investment instead of passing them on to the public,
Following the amendment of section 14 of the Federal Reserve
Act, approved April 13, 1920, permitting the Federal Reserve Banks,
with the approval of the Board, to establish graduated rates of discount? the banks located at Kansas City, Dallas, St. Louis, and Atlanta established progressive rates of discount, effective April 19,
May 21, May 26, and May 31, respectively. The progressive rates
are assessed against amounts discounted for member banks in excess of their " basic " or " normal" lines, the latter being determined
by the Federal Reserve Bank uniformly for each member bank in
the district. In the case of the Atlanta, St. Louis, and Kansas City
banks the basic line adopted was 2J times a sum equal to 65 per cent
of the reserve balance maintained or required to be maintained by
the member bank, plus its paid-in subscription to the capital stock
of the Federal Reserve Bank, while in the case of the Dallas bank
the basic line was fixed at an amount equal to the combined capital
and surplus of each member bank. Under the progressive rate plan,
discounts granted in excess of the basic lines are subject to one-half
per cent progressive rate, in addition to the normal rate, for each
25 per cent b}^ which the amount of accommodation extended to the
bank exceeds its basic line, although certain exemptions in the case
of paper secured by Government obligations are allowed.
In order that the discount policy of the banks might not adversely affect the market prices of Government securities, or work
a hardship on those still carrying a large part of the Liberty bonds
representing original subscriptions, none of the four banks applied
the progressive rates to paper secured by United States Government
war obligations. Since the progressive rates apply only to excess
borrowings—that is, to borrowings in excess of the normal or basic
line—a bank obtaining accommodation to the extent of twice its
basic line would be subject to a maximum penalty of 2 per cent.
This 2 per cent, however, would apply only to the last increment of
ANNUAL REPORT FEDERAL RESERVE BOARD.
59
25 per cent of the basic line? so that the average penalty calculated
on its entire borrowings would be about 0.625 per cent. Likewise
not until a bank has borrowed an amount equal to 2-| times its
basic line will the average excess of the charge over the basic rate
amount to 1 per cent on its total borrowings, thereby imposing a
surcharge equal to the difference between the normal 6 per cent rate
prevailing at those banks which have adopted the graduated rates,
and the uniform 7 per cent rate adopted at about the same time by
four other Federal Reserve Banks.
In the case of the Kansas City bank, superrates are applied to excess borrowings at the time the loan is granted to the member bank,
while in the case of the other Federal Reserve Banks the progressive
rate is applied only to the average borrowings in excess of the basic
line over a fixed period-.
Only in isolated cases, especially where a bank has allowed its reserve balance with the Federal Reserve Bank to fall materially below
legal requirements, thus reducing substantially its basic line, have excessively high graduated rates been applied, the usual surcharge
ranging generally from •£ to 2 | per cent.
While beneficial results have been obtained through the application of progressive discount rates, it is not expected that their application will prove a more efficient means of credit control than is the
flat 7 per cent rate on commercial paper adopted by some of the Federal Reserve Banks, at least not until such time as it is deemed advisable to withdraw the exemption on loans secured by Government war
obligations, or until the volume of such paper presented for rediscount at the Federal Reserve Banks is materially reduced.
It may be noted here that the Atlanta bank on November 1, with
the approval of the Federal Reserve Board, discontinued the application of graduated or progressive rates, and adopted the 7 per cent rate
on all paper other than that secured by Government war obligations
and on discounted bankers' acceptances.
The following table shows the amount of discount earned by the
Federal Reserve Banks through the application of progressive rates
during each month in 1920:
Atlanta.
April
Mav
June
Julv
August
September
October
November
December
Total
St. Louis.
Kansas
City.
Dallas.
::::::::::::
$5,831
19,488
33,911
35,113
65,666
36,419
$1,427
21,174
13,174
30,551
31,044
38,296
98,571
156,940
$4,711
29,710
27,516
41.296
37! 721
41,980
69,267
72,627
61,944
$476
3 193
6,837
9 809
13,407
16,295
12,510
13,962
196,428
391,177
386,772
76,489
60
ANNUAL KEPORT FEDERAL RESERVE BOARD.
Discount rates obtaining on January 1,1920, at the Federal Eeserve
Banks on the several classes of paper, and the changes made during
the year 1920, are shown in the following tables:
Commercial and industrial
Federal Reserve Bank.
paper maturing -within 90 days.
Changes effective.
In
effect
Jan. 1,
j
i 1920. Jan. 3. Jan. 12. Jan. 23. Jan. 24. Jan. 26. Jan. 28.
Feb. 2. June 1. June 4. Nov. 1
I
Boston
i
New York
Philadelphia . .
4-a
4-24f
Richmond
Atlanta...
Chicago
St Louis . . .
Minneapolis
!
Kansas City...!
Dallas
i
San Francisco.!
4|
4f
4^
x
4f
5
5
4-|
6
6
7
!
!
7
:
7
6
5
1
4f
6
6
6
6
. .
7
6
6
6
!
;
i
;
6
Rate of 5 per cent for maturities 61 to 90 days.
Agricultural
Federal Reserve Bank.
and live-stock paper maturing
after 90 days hut within
6 months.
Changes effective.
In
effect
Jan. 1,
1920. Jan. 3. Jan. 12. Jan. 23. Jan. 24. Jan. 26. \ Jan. 28. j Feb. 2.J une 1. June 4. Nov. 1
!
6
6
6
5
Boston. . . . . . .
5
New York
Philadelphia. .
5
Cleveland
5
Richmond
Atlanta
i 5v>
Chicago
i
oj
St. Louis..
5J
Minneapolis
<
F>K
Kansas Citv.
5%
6
Dallas
"
5%
San Francisco.
i
;
!
I
6
j
hi
i
6
6
6
7
i
i
i
7
(3
I
!
j
i
6
i
!
Paper secured by Liberty bonds and Victory notes—maturing
j
within 90 days.
Changes eHec tivc.
Boston...
New York
Philadelphia
Cleveland
Richmond .
Atlanta . „
Chi cap"0
St. L o u i s . . . . .
Minneapolis.
Kansas'City
Dallas
San Francisco
. . . .
May 13.
1 June 1.
CD
MayS.
d
4a
AA
-,I
.. .1
4a
52
l\
A*
4-1
1 4^.
5
5
4=1
|
51
Rate of 5 per cent for maturities 61 to 90 days.
1
4
6
i
i" "
51 I
|
...J....
6
Kl
5a
•-•T'"'
1
3
00*
CM
U
0)
1
|
I
51
4-i
. . .
06
| May 1.
Jan. 24.
|i
Jan. 3.
Federal Reserve Bank.
Jan. 26.
| .
61
ANNUAL BEPOET FEDERAL RESERVE BOARD.
Paper secured by United States- Treasury certificates of
within 90 days.
Changes effective.
In
Federal Reserve
Bank.
"B oston
New York
Philadelphia
Cleveland
Richmond...
Atlanta
(? fleet
Jan.
1,
1920
i 41-4^
4|
AS
2
U
A\
Jan. Jan.
3
St Louis
Minneapolis
Ah
41
4.%-
Dallas
San Francisco
4|
Ah
Jan.
6.
Jan.
5.
Jan. Jan.
10.
12.
Jan.
24.
Feb.
27
Feb.
26.
Feb.
Jan.
25.
Feb.
28
5
4|
5
414f
4
Chiopijjo
indebtedness—maturing
4f
5
4|
4|
3 41
!
i
I I
41 1
4-3-
5 ;
i
Changes effective.
Federal Reserve
Bank,
Mar. Mar. Mar. Apr. Apr. Apr. Apr, Apr. Mny
22.
10.
20.
21.
1.
4.
26.
130° ton
"N"PW Vork
Philadelohia
Mav
20."
May
21."
May
27.
I
I
5
15-5V
1
Richmond
Atlanta
1
1JWV-V
'
;
5
-
i 5 5-1 i
1
1 n-nl
5-5i
1
Ivfi n neanolis
TCi nsas Citv
San Francisco
May
17.
5-51-
1
i "_^i
5-5-i
5-5 \
i
'
Changes effective.
Federal Reserve
Bank.
1
June June June June June July July 1 July July July July i July Oct.
1.
4.
2. { 3.
13."
ID.*
10.
1.
10.
12.
is.
T5 oston
Mpw Yo r k
Phi!q,dprohia
(Cleveland
Richixiond
\t tlapta
Chicago
St I ouis
M in n eaDolis
I
...
1
5i
5k
5s
54
Dallas
San Francisco
5 6j
1
1
1
j
1 i 5 ft
5a-6
54-6
i5.\-fi
! i S-fi i
i
1
5 6
1 Discount rate corresponds to interest rate borne by certificates pledged as collateral with maximum
and minimum limits shown.
2 Rate of 4 | per cent on member banks' collateral notes secured by certificates bearing interest at 4f per
cent.
3 Rate of 5 per cent for maturities Gl to 90 days.
62
ANNUAL REPORT FEDERAL RESERVE BOARD.
Bankers' acceptances, discounted for member banks, 'maturing within three
months.
Boston
New York
Philadclrahia .
Cleveland
Richmond
Atlanta -.
Chicago
St. T,oui«5
Minneapolis .
Kansas City
Dallas
San Francisco..
0)
4(l)
Ah
5
1
i
j
6
6
....
r T
)
. 1
5
(i)
5
(i)
re
5
1
i
i
. . . . . .
51
1
(i)
5
6
....
51
5
5
5
n\
o4
51
(i)
(ij
....
0 |
....
6
i
...
6 1
5?j
t
Nov. 1.
uly 12.
2
!>>
Oct. 20.
i 1
DO
Oct. 1.
1
une 4.
T—I
03
Vpr. 1.
an. 27.
an. 26.
<M*
r
an. 24.
an. 12.
"CD 1~"1
an. 23.
Changes effective.
Federal Reserve Bank.
1
1 "
1
No special rate. Bankers' acceptances presented for discount subject to regular commercial paper rate.
NOTE7—The rates established during 1920 on bankers- acceptances presented for discount applied
only to such bills as had been accepted and sold to banks other than the accepting bank or to other holders,
and which were offered to the Federal Reserve Bank for rediscount by some bank other than the accepting bank. Acceptances presented for rediscount by the accepting bank were subject to the regular commercial paper rate.
Trade acceptances discounted for member banks, maturing within 90 days.
Federal Reserve Bank.
In
effect
Jan.l,
1920.
Changes effective.
Boston
New York......
Philadelphia..
Cleveland
Richmond
Atlanta.
.,
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco..
.1
.. 7
5! |
6i I-
Minimum rates on acceptances bought in open market, maturing within
months.
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
In
effect
Jan. 1,
1920. Jan. 5
three
Changes effective.
j
Jan. 24 Jan. 26. Jan. 28.1 Feb. 2. Feb. 6. June 1 Oct. 1.
51 I
51
NOTE.—On Feb. 26, 1920, the Board ruled that thereafter, when acceptances were purchased from the
accepting institution, the rate charged was to be not less than the discount rate on commercial paper effective at that time.
ANNUAL REPORT FEDERAL RESERVE BOARD.
63
Paper secured by War Finance Corporation bonds.
Discount rates on paper secured by War Finance Corporation bonds, established during
1919 at 1 per cent in excess of rates on commercial paper of corresponding maturities,
were discontinued on April 1, 1920, all outstanding War Finance Corporation bonds having
matured en that date.
Graduated discount rales.
(Authorized by Apr. 13, 1020, amendment to Sec. 14 of the Federal Reserve Act.)
E stablished by Federal Reserve Bank of—
Atlanta
St Louis
Kansas City
Dallas
Date established.
May
May
Apr.
May
Date discontinued.
31,1920 Nov. 1,1920
26,1920
19,1920
21,1920
CHECK CLEARING AND COLLECTION.
Substantial progress has. been made during the year in the development of the Federal Reserve check clearing and collection system. During the year 11 States—Virginia, West Virginia, Kentucky, North Carolina, Arkansas, Arizona, Wisconsin, Minnesota,
South Dakota, Washington, and Oregon—have been added to the
number of States in which all banks are on the par lists of the Federal Reserve Banks. On January 1, 1920, checks on all but 3,996 of
the 29,557 banks in the United States could be collected at par
through the Federal Reserve Banks. On January 1, 1921, checks on
all but 1,755 of the 30,523 banks in the United States could be thus
collected. These 1,755 banks are all located in the following seven
States of the Southeast: Tennessee, South Carolina, Louisiana, Mississippi, Alabama, Georgia, and Florida. Consequently, every bank
in 9 of the 12 Federal Reserve districts is on the par lists, the three
districts in which there remain any nonpar banks being those of
Richmond, Atlanta, and St. Louis.
This development in the check clearing and collection system has
been accomplished in the face of continuous opposition on the part of
some member and nonmember banks. It is evident that as the
merits of par collection are becoming more widely known fewer
banks are participating in the opposition, but the banks which continue to oppose par collection are well organized and their opposition appears to be as vigorous as ever.
In order to present clearly the issue involved in the controversy
over par collection, it is necessary to review the history of the development of the check-collection system under the Federal Reserve Act.
That history is given at some length in the letter of the Governor of
the Federal Reserve Board, dated January 26, 1920, to the President
of the Senate in response to Senate resolution No. 284 of January 19,
1920. This letter was printed as Senate Document No. 184.
64
ANNUAL REPORT FEDERAL RESERVE BOARD.
The provisions of the Federal Reserve Act which relate to check
clearing and collection were last amended by the act of June 21, 1917.
Section 16 provides that the Federal Reserve Board may act as a
clearing house for the Federal Reserve Banks and may require those
banks to act as clearing houses for their member banks. Section 13
as amended by the so-called " Hardwick amendment" of June 21,
1917, provides that Federal Reserve Banks may receive on deposit
u
checks and drafts payable upon presentation," the checks which
those banks are authorized to receive on deposit not being limited,
as they were prior to the amendment, to checks on " solvent member
banks." The proviso at the end of the first paragraph of section 13
reads:
That nothing in this or any other section of this act shall be construed as
prohibiting a member or nonmember bank from making 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.
As construed by the Attorney General, and as recently held by the
United States Circuit Court of Appeals, Fifth Circuit, these provisions prohibit the Federal Reserve Banks from paying exchange
charges to member or nonmember banks.
It is apparent that if Federal Reserve Banks in their capacities
as clearing houses are to render full service to their member banks,
they must clear checks drawn on all banks including those nonmember
banks, now few in number, which decline to remit at par. Consequently, the Board has approved the action of the Federal Reserve
Banks not only in soliciting nonmember banks to agree to remit at
par but also in collecting by presentation at the counter checks drawn
on nonmember banks which decline to remit at par.
Opposition on the part of the banks against par collection has taken
various concrete forms. Since Federal Reserve Banks can not pay
exchange charges, when nonmember banks refuse to remit at par the
Federal Reserve Banks have no choice, if they are to collect the checks
drawn on those nonmember banks, but to make presentation of such
checks at the counters through selected agents. These agents may be
employees of the Federal Reserve Banks or may be banks, express
companies, or any other suitable agents located in the same town.
The employees and agents of the Federal Reserve Banks have encountered various obstacles in making presentation of checks, such as
the tender of payment in a manner calculated to take as much time
as possible, or the refusal of payment in reliance on the inability of
the agent to find a notary public willing to make protest. The Board
has been advised of one instance where a duly appointed agent has
ANNUAL, REPORT FEDERAL RESERVE BOARD.
65
within a few days after appointment given notice to the Federal Reserve Bank that he would no longer act as agent for fear of injury
to his business.
Other banks, including some member banks, have resorted to the
device of stamping legends on their blank checks to the effect that the
check is not valid if presentation is made through the Federal Reserve Banks.
On January 22, 1920, a number of nonmember banks filed a petition in the Superior Court of Fulton County, Ga., for an injunction
restraining the Federal Reserve Bank of Atlanta from collecting
checks drawn on the plaintiff banks in any manner other than
through the mails. The suit was transferred to the United States
District Court for the Northern District of Georgia, which dismissed the complaint upon the merits. The decision of the district
court was affirmed by the United States Circuit Court of Appeals
for the Fifth Circuit on November 19, 1920, and the case has now
been appealed to the Supreme Court of the United States. The restraining order, obtained by the plaintiff banks at the commencement
of the suit,' has been continued pending the appeals to the Circuit
Court of Appeals and the- Supreme Court of the United States;
and this accounts in large part for the fact that no material progress
has been made by the Federal Reserve Bank of Atlanta in adding to
the number of banks whose checks it can collect at par,
The legislatures of five States, namely, Mississippi, Louisiana,
South Dakota, Georgia, and Alabama, have enacted laws for the
express purpose of preventing the Federal Reserve Banks from collecting, at par, checks drawn on the banks located in those States,
The Mississippi law purports to require all banks within the State,
including national banks, member banks, and nonmember banks, to
make charges " for collecting and i emitting " cash items which " are
presented to the payer bank for payment through or by any bank,
banker, trust company, Federal Reserve Bank, post office, express
company, or any collection agency, or by any other agency whatsoever." The laws of the four other States are not mandatory, but
merely purport to give to all banks within the respective State the
right to make similar charges. The laws of Mississippi, Louisiana,
South Dakota, and Alabama prohibit any officer of the respective
State from protesting any check for nonpayment, when such nonpayment is on account of the refusal of any such agency to pay exchange, and the laws of Mississippi, Louisiana, and South Dakota
further provide in terms that " there shall be no right of action,
either at law or in equity, against any bank in this State for a
refusal to pay such cash item, when such refusal is based alone on
the ground of the nonpayment of such exchange." The Federal Re
68
ANNUAL REPORT FEDERAL RESERVE BOARD.
serve Board has taken the position that these laws are clearly unconstitutional in so far as they purport to require national banks, and
State banks which have joined the Federal Reserve System, to make
exchange charges against Federal Reserve Banks.
The Board has obtained no opinion as to the constitutionality of
the laws in so far as they purport to affect nonmember State banks,
believing that this is a question which can be settled only by the
courts. Prior to the enactment of the South Dakota and Louisiana
•laws, all banks in South Dakota, and in that part of Louisiana which
is located in the Eleventh Federal Reserve District, had been placed
upon the Federal Reserve Bank par lists, and the Federal Reserve
Banks of Minneapolis and Dallas have since the enactment of those
laws continued to receive for collection at par all checks drawn on
those banks.
In February the Board's attention was-called to certain charges
made by State bankers in Nebraska that employees of the Omaha
branch of the Federal Reserve Bank of Kansas City had acted in an
unseemly manner and had used oppressive methods in the presentation of checks on nonmember banks. The Board held hearings on
February 24, 25, and May 5 to inquire into these alleged acts and
methods, at which hearings the Federal Reserve Bank officials and
employees involved were examined under oath and denied the charges
in every particular. The hearings were attended by a delegation of
Congressmen from Nebraska, and the State bankers making the
charges and their witnesses were also invited to be present. For the
convenience of the latter the Board offered to have a committee of its
members hold a hearing in Nebraska. No witnesses on behalf of the
State bankers were produced, however, and the only evidence submitted in support of the charges consisted of a series of affidavits.
In no instance, in the Board's opinion, was any specific charge of
improper conduct on the part oi an employee of the Omaha branch
substantiated.
In view of all the circumstances, and at the request of some of the
opponents of par collection, the Board concluded to present the facts
to Congress for such action as that body might care to take. In accordance with this determination the Board on May 5,1920, addressed
a letter to the chairman of the Banking and Currency Committee of
the House of Representatives. In this letter the Board called attention to the persistent opposition to par collection and to the obstacles
which the Federal Reserve Banks were encountering, and suggested
that the committee might deem it advisable to consider whether the
par collection of checks should continue to be a function of Federal
Reserve Banks, with a view to recommending a further amendment
to the law which would either remove the obstacles standing in the
ANNUAL EEPORT FEDERAL RESERVE BOARD.
67
way of par collection at the present time or permit both member and
nonmember banks to make exchange charges against the Federal
Reserve Banks, such charges, of course, to be reimbursed to the Federal Reserve Banks by the banks sanding the checks for collection.
The Board is thoroughly convinced of the advantages of a universal
system for the par collection of checks, and it brought the matter to
the attention of Congress, not because of any doubt on its part as to
the effect of the law, but because the issue involved the propriety of
the legislation itself. The Board has frequently had occasion to point
out that in their origin, exchange charges were justified on account of
the necessity for, and the high cost of, actually transporting currency,
but that under existing conditions those charges can be justified upon
no scientific or economic principle, since the payment of checks at
places other than where the drawee banks are located involves little expense and that is borne by the Federal Reserve Banks. Even the
banks which decline to remit at par to the Federal Reserve Banks receive the benefits of the Federal Reserve check-clearing facilities by
having the checks which they receive collected through a.correspondent bank which is a member of the Federal Reserve System although
they contribute nothing to the strength of the system. To the extent
that the practice of charging exchange is continued under the operation of the Federal Reserve System, It is an anachronism which permits the charging banks to impose a charge upon commerce and industry after they have ceased to perform the service which in former
times justified the imposition of such a charge. In this connection
the following is quoted from a letter dated April 1, 1920, addressed
by the Board to a United States Senator:
Since the establishment of the Federal Reserve Banks the cost of transferring balances from one section of the country to another has been almost entirely
eliminated. Each Federal Reserve Bank carries a portion of its gold reserve in
a gold settlement fund which is kept in the Treasury at Washington, and there is
a daily telegraphic clearing conducted by the Federal Reserve Board for all 12
banks and for their branches. The amount of gold in the fund is practically a
stable quantity, but its ownership varies from day to day according to the debits
and credits to the different banks. Transfers are made by the Federal Reserve
Banks for member banks, and also for nonmember banks through the medium of
member banks, by telegraph without any charge whatever to the member bank
or its client, all costs being borne by the Federal Reserve Banks. Thus a bank
in Wisconsin or California, Maine or Texas, can secure an instantaneous transfer to any one of the 12 Federal Reserve cities or to the 20 cities where there are
branch Federal Reserve Banks without any expense whatsoever, and the sum
total of these transfers is settled daily through the gold settlement fund above
referred to. The Federal Reserve Banks pay all costs of transporting currency to or from their member banks as well as transportation charges on currency sent them by nonmember banks in payment of checks.
The total volume of transactions through the gold settlement fund in the year
1919 was approximately $74,000,000,000, and the total cost, including the ex
68
ANNUAL REPORT FEDERAL, RESERVE BOARD.
pense of the leased wires, was about $250,000. This cost was borne by the
Federal Reserve Banks and does not represent any expense whatever to the
member banks or their customers. Thus it will be seen that the basic cost oi
making domestic exchange in the year 1919 was 0.3 of a cent for each $1,000
transferred. A charge of 10 cents per $100 on the amount cleared through
the gold settlement fund would have involved an expense of $1 for each
$1,000 transferred, or about $74,000,000 for the entire amount.
The intradistrict clearings made by the Federal Reserve Banks, eliminating
duplications, amounted to about $135,000,000,000, and the total expense of these
transfers was borne by the Federal Reserve Banks. Had the Federal Reserve
Banks been obliged to pay for these transfers at the rate of 10 cents per $100,
it will be seen that the total expense would have been $135,000,000, which
amount is far in excess of the total earnings of the Federal Reserve Banks
and therefore could not have been absorbed by them. If not absorbed, the
charge would have had to have been transferred to the depositors of the
checks, so it will be seen that a charge of 10 cents per $100 upon the business
handled by the Federal Reserve Banks would have involved last year a cost
to the commerce and industry of this country of at least $135,000,000.
The Federal Reserve Board believes that the present terms of the
Federal Reserve Act impose upon it the duty of developing and maintaining the Federal Reserve par collection system, while the opponents
of par collection vigorously urge the contrary view. The opinion of
the United States Circuit Court of Appeals, previously referred to,
decisively upholds the Board's point of view, and, Congress having
taken no action in the matter of further legislation on the subject, the
Board will, of course, regard as binding upon all parties the final
interpretation of section 13 of the Federal Reserve Act by the Supreme
Court of the United States. Consequently, unless that court reverses
the decision of the United States Circuit Court of Appeals, the Board
will assume that Congress desires the Federal Reserve Board and the
Federal Reserve Banks to continue, as heretofore, to develop and perfect the Federal Reserve par collection system.
Until the United States Supreme Court renders its decision in the
appeal now pending before it, the opinion of the United States Circuit
Court of Appeals must, of course, be regarded as conclusive as to the
construction of the law. The following extract from that opinion
sustains in every respect the position which the Board has always
taken that its duty under the law as it now stands is to develop and
perfect the Federal Reserve par collection system.
The principle that one must so use his property as not to unnecessarily and
maliciously injure his neighbor, even though his act is otherwise lawful, is
also invoked. Conceding that the accumulating of checks, and their presentation, when accumulated, with the intent to embarrass and injure the drawee
bank, might constitute an actionable wrong and one that might be prevented
hj injunction, we do not think the amended bill presents any such case. There
is no specific charge in the bill of any threat to present the checks in any
accumulated or oppressive manner, on which a court of equity would be justified in acting. Nor does the bill charge the appellee bank with acting from
69
ANNUAL REPORT FEDERAL RESERVE BOARD.
a merely malicious motive, if that is material. It does aver that the purpose of
the appellee was to compel the appellants to accept the lesser of two evils and
to remit at par for cheeks drawn upon it. If this charge was borne out by the
exhibits, which it is not, it would not constitute legal duress, on which a legal
complaint could be predicated. The exhibits show that the adoption of a system
of universal par clearance was advocated in good faith by the appellee bank
as a proper banking policy, and as well by Congress and the Federal Reserve
Board. The adoption of appropriate means of the appellee bank to accomplish.
this end can not with any propriety be attributed to malice on its part against
appellants and other banks- in like condition. Nor does the adoption of the
method of presenting checks over the counters of the drawee bank imply an
attempt to coerce them into becoming member or depositing banks. The Federal Reserve Bank was interested to supply a universal clearance at par for
its member and depositing banks. It could accomplish this only by accepting
from its member and depositing banks all checks tendered it by them upon
whatever banks drawn. If drawn upon a nonmember and nondepositing bank,
which refused to remit at par, it was disabled under the statute from handling
such checks through the method of transmission of the checks and remittance of
the proceeds through the mails. It could only collect such checks by presentation in person to the drawee bank. It is therefore, reasonable to suppose that
its declared purpose of making such presentations was in furtherance of its
policy of furnishing complete clearing facilities to its member banks, and was
not for the purpose of injuring or destroying the drawee banks, or of coercing
them into becoming member or depositing banks with it. It constituted an
essential step without which universal par clearance was not possible of accomplishment.
In the following table are given the number and amount of checks
and drafts handled by the Federal Reserve Banks during monthly
periods in 1920:
Items handled by all Federal Reserve Banks combined.
[Exclusive of duplications on account of items being1 handled by more than one Federal
Reserve Bank or Branch.]
Total items
handled.
Month ending-
Jan. 15,1920
Feb. 15,1920...
Mar. 15,1920...
Apr. 15,1920. .
May 15,1920...
June 15,1920...
July 15,1920...
Auej. 15, 1920...
Sept. 15,1920...
Oct. 15, 1920...
Nov. 15, 1920...
Dec. 15, 1920...
Total
erage
Items drawn on
banks in district
of reporting F . R.
b a n k or branch.
Items d r a w n on
United States
Treasurer.
Items forwarded
direct to members
and noirmembers in other
F. R. districts.
Number.
Amount.
Number.
Amount.
Number. Amount. Number. Amount.
33,208,287
30, 867,486
33, 568, 251
38,408,451
37,176, 038
36,459,470
37, 553, 352
37,052, 060
38,541,139
40,674,502
41,399, 208
41,764,941
Thousand
dollars.
14,044,656
12, 519,612
13,156,260
14,451.902
12, 820,472
12,843,671
13.618.865
12,303,370
12, 880,327
13,677,098
13,090,293
12,093,079
31,212,530
29,165,181
31,996,561
36, 207,429
34,480, 874
34,487,372
35,127, 057
35,045, 843
38,541,102
38,156, 780
38, 402,450
39,082,305
Thousand
dollars.
13, 298,384
11,958,671
12,645, 019
13, 567, 468
12,339, 093
12,331, 819
12,689, 571
11,918,337
12,313,878
13,247, 060
12,673,791
11,604,936
1,990,362
1,697,090
1,565,995
2,192, 547
2,689, 238
1,965,436
2,418,982
1,999,664
1,992, 827
2,510,644
2,989,658
2,675,292
Thousand
dollars.
743, 821
558,926
509,415
882, 565
479, 638
509, 831
927,221
383,068
564,334
427,398
414, 296
486,043
5,395
5,215
5,695
6,475
5,926
6,G62
7,313
6,553
7,210
7,078
7,100
7,344
Thousand
dollars.
2, 451
2,015
1,826
1,889
1,741
2,021
2,073
1,965
2 115
2,640
2,206
2,100
446,671,185 157,499,605 419,905, 484 1.50,588,027 26,687, 735 6, 886,556
77,966
25,022
6,497
2,085
37,222,598 13,124,967 34,992,124 12,549,002 2, 223,978
573,880
70
ANNUAL. REPORT FEDERAL RESERVE BOARD.
GOLD SETTLEMENT FUND.
The volume of transactions through the gold settlement fund has
shown a continued and steady increase during the year, occasioned,
in part, by the increased use of the check clearing and collection
facilities of the Federal Reserve Banks by member banks, and, in
part, by the increased volume of inter-Federal Reserve Bank rediscounts. During the past year, as during the previous three years,
the gold settlement fund operations have been affected to a large extent by the fiscal operations of the Treasury. Large amounts of
transfers have continued to be made on account of transactions incident to the collection and distribution of funds from the sale of
Treasury certificates of indebtedness, and the payment and distribution of funds on account of income and excess profits taxes.
The only important change during the past year in the method of
operation of the gold settlement fund, which has been explained
fully in previous reports, was the arrangement made effective March
1, whereby each Federal Reserve Bank and direct settling branch began telegraphing the Board the gross amount collected for the account of each other Federal Reserve Bank and direct settling branch
before the final closing of the books for the day. Under the new
arrangement the settlement is now effected by the Board the same
day, telegrams are dispatched to each bank and direct settling
branch so as to reach them in advance of the opening for business the
following morning, when the necessary entries are made and their
books finally closed for the preceding day. Under the original plan,
settlements were made each morning of the credits wired to the Board
•as of the previous day. The new plan has resulted in the elimination
of inter-Federal Reserve Bank " float" which had previously been
carried by some Reserve Banks for other Reserve Banks on account of
payments received by the correspondent Federal Reserve Bank one
day in advance of pa}^ment through the gold settlement fund.
On April 10 the Board authorized payments through the gold
settlement fund by Federal Reserve Banks to the Treasurer of the
United States for account of member national banks for credit to
their 5 per cent redemption fund against national bank notes to be
made in any amount, instead of in even dollars which had previously
been the rule. This resulted immediately in a substantial increase in
the number and volume of such transactions, which have been
further increased since the discontinuance of the subtreasuries with
which the bulk of such deposits had previously been made.
The Los Angeles branch of the Federal Reserve Bank of San
Francisco and the Detroit branch of the Federal Reserve Bank of
Chicago were authorized, effective January 2 and February 2, re
ANNUAL, REPORT FEDERAL RESERVE BOARD.
71
spectively, to settle direct with other Federal Reserve Banks and
direct settling branches through the gold settlement fund under arrangements described in previous reports, whereby branches of
Federal Reserve Banks were authorized to settle direct with other
Federal Reserve Banks and direct settling branches through the
gold settlement fund in order to facilitate the development of branch
bank service and to simplify interoffice accounting.
Combined clearings and transfers through the fund during the
year aggregated $92,625,305,000, as compared with $73,984,252,000
in 1919, $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
$250,602,968,000 since the operation of the fund was begun on May
20, 1915. A comparison of the amounts of the average weekly settlements shows clearly the growth of the volume of transactions.
Average weekly volume of clearings and
1920
1919
1918
1917
1916
1915
transfers.
$1, 793, 584, 000
1,422, 774, 000
1, 015, 399, 500
522, 206, 000
106, 422, 000
31,898, 000
For the week October 15-21 the record figure of $2,271,555,831.55
for combined clearings and transfers was established. Extraordinary transactions of that week affecting the gold settlement fund
operations include transfers of funds in connection with payments
covering the sale and redemption of Treasury certificates on October
15, transfers incident to the payment of interest on approximately
$6,000,000,000 Liberty loan issues due October 15, and transfers
incident to the redemption of Anglo-French bonds maturing on
October 15, 1920.
When it is considered that these enormous transfers of gold credits
were made almost instantaneously by means of the leased telegraph
wire system without the physical movement of a dollar of gold, it
will be seen that the gold settlement fund operations have 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
$370,000.
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 Treasury and the commerce of the country of $92,625,000.
45525°—21
6
72
ANNUAL REPORT FEDERAL RESERVE BOARD.
FISCAL AGENCY OPERATIONS.
During the past year the duties of the Federal Reserve Banks as
fiscal agents of the United States, as described in previous reports,
have been enlarged as the result of an act of Congress approved May
29, 1920, which provided for the discontinuance of the nine subtreasuries located in the cities of Boston, New York, Philadelphia,
Cincinnati, Baltimore, New Orleans, Chicago, St. Louis, and San
Francisco on or before July 1, 1921, and authorized the Secretary
of the Treasury to transfer any or all of their duties to the Treasurer
of the United States, the mints, assay offices, or Federal Reserve
Banks.
The intent of the act of August 6, 1846, under which the subtreasuries were established as a part of the independent Treasury system,
was that the Government finances should be entirely separated from
the banks of the country. Government moneys were no longer deposited in the banks, but in the Treasury or subtreasuries. The
necessity for the continuance of the subtreasuries, however, became
less obvious as the relations between the Government and the banks
of the country became closer. Due to the establishment of the national banking system in 1863 and the then unprecedented fiscal
operations of the Treasury incident to the Civil War, the independence of the separate Treasury system began to relax and national
banks became depositaries of public moneys and fiscal agents of the
Government. This change in the relationship between the Government and the banks developed in the intervening years and culminated with the passage of the Federal Reserve Act in 1913, which
authorized the Federal Reserve Banks to act as depositaries and fiscal
agents of the United States. With the establishment of the Federal
Reserve System and the growth in the fiscal agency operations of the
Federal Reserve Banks for the Government, especially during the
past four years in connection with the financing of the war, the
necessity for the continuance of the subtreasuries has finally disappeared.
Under regulations prescribed by the Secretary of the Treasury all
of the functions and duties heretofore performed by the subtreasuries, which are enumerated below, will devolve upon the Federal
Reserve Banks, with the exception of the last named, which will be
performed for the present only by the Treasurer of the United
States, the mints, and assay offices, and the issue of gold order certificates on gold deposits, which will be performed for the present only
by the Treasurer of the United States.
The receipt of gold coin and standard silver dollars for exchange.
The receipt of United States notes, Treasury notes, gold and silver
certificates, and subsidiary and minor silver coins for redemption.
The exchange of various forms and issues of money.
ANNUAL REPORT FEDERAL RESERVE BOARD.
73
The cancellation and shipment to Washington Ox currency unfit
for circulation and the laundering of soiled currency which permits
of this process.
The receipt from United States depositary banks of their surplus
deposits of internal revenue, customs, money order, postal, and other
Government funds.
The receipt of deposits of postal savings funds, post-office funds,
money-order funds, deposits on account of the 5 per cent fund for
the redemption of national bank notes, deposits of interest on public
deposits, and deposits of funds by Government disbursing officers.
The payment of United States coupons.
The payment of checks and warrants drawn against the Treasurer
of the United States.
The receipt of funds for transfer to other points through Federal
Reserve Banks or branches located therein.
The keeping in custody of reserve and trust funds consisting of
gold coin and bullion and standard silver dollars securing gold and
silver certificates respectively and held as reserve against United
States notes.
Under instructions of the Secretary of the Treasury the subtreasuries at Boston, Chicago, New York, and San Francisco were
discontinued on October 25, November 3, December 6, and December
20, respectively, and the functions described above (except the last
named) will be performed hereafter by the Federal Reserve Banks
in those cities.
Special separate instructions were issued by the Secretary of the
Treasury on August 30, under the provisions of the act of May 29,
1920, authorizing all Federal Reserve Banks immediately to make
exchanges, replacements, and redemptions of United States paper
currency, which operations had previously been performed by subtreasuries, and up to December 31 the following Federal Reserve
Banks and branches have undertaken these functions on dates as
specified:
Boston
New York
Buffalo branch
Philadelphia
Chicago 1
Detroit branch
St. Louis
Little Rock
Louisville
Memphis
Minneapolis
Kansas City
San Francisco
Oct. 1
Nov. 1
Nov. 22
Nov. 18
Nov. 1
Nov. 13
Nov. 1
Dec. 23
Dec. 23
Dec. 23
Dec. 1
Nov. 1
Dec. 21
74
ANNUAL REPORT FEDERAL RESERVE BOARD.
Also, the Secretary, on October 19, under the provisions of the
act of May 29, 1920, authorized all Federal Reserve Banks to make
exchanges and redemptions of United States coin, which functions
were previously performed by the subtreasuries, and up to December
31 the following Federal Reserve Banks have undertaken these operations on dates as specified:
Boston
Chicago
New York
San Francisco
Oct. 26
Nov. 4
Dec. 7
Dec. 21
It is expected that all the subtreasuries will be discontinued shortly
after January 1, 1921, and that all Federal Reserve Banks will make
replacements, exchanges, and redemptions of United States paper
currency and coin.
The closing of the subtreasuries and the assumption of their duties
and functions by Federal Reserve Banks is being effected without
interruption to business and without interference with the financial
operations of the Government, and it is believed that the change will
result in a considerable advantage to the banks and the general
public.
In addition to the assumption of the above-described fiscal agency
functions the Federal Reserve Banks have continued to act as fiscal
agents of the Government during the past year in handling all details incident to the sale, allotment, distribution, and redemption of
Treasury certificates of indebtedness among member and nonmember
banks in their respective districts, including the collection of funds
received from the sale of the certificates and the depositing of funds
with depositary banks and withdrawing same as required by the
Treasury. Federal Reserve Banks have also made denominational
exchanges and exchanges of temporary for permanent Liberty bonds,
received collections on account of income and excess profits taxes, redeemed coupons covering interest payments on Government bond,
Victory note, and certificate issues, and have handled the sale and
exchange of thrift stamps and other Government savings securities.
As fiscal agents of the Treasury the Federal Reserve Banks have
placed $1,231,837,000 of Treasury loan certificates of indebtedness and
$2,619,534,500 of tax certificates during 1920, and have also handled
all details incident to the redemption of $4,960,000,000 of Treasury
certificates. They have also paid for the Treasury $87,357,000, covering 584,600 interest coupons on outstanding certificates.
The following table shows the amount of allotments of Treasury
certificates during the calendar year 1920 by issues and Federal Reserve districts:
Allotments of Treasury certificates issued during 1920 in anticipation of tax payments.
I n anticipation of t a x
p a y m e n t s during 1920.
Federal Reserve
Bank.
Boston.
New York
. ..
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Rate of interest
Date issued
Maturity date
I n anticipation of t a x p a y m e n t s during 1921.
Total.
Series
T M4.
Series
TM.
$52, 782, 500
324,189, 000
48, 300, 000
46,119, 500
11, 858, 000
14,600, 500
77,484, 500
23, 234, 000
15, 515, 000
13,036, 500
8, 506, 500
38,400, 000
$17,695,500
107, 732, 500
10, 416, 000
28,043, 500
7,093, 500
9,276, 000
50,110, 500
9,421, 500
8, 969, 500
16, 000, 000
14, 868, 500
25,250, 000
$10, 202, 000
59,982, 000
5,131, 500
17,420, 500
5,981, 500
2,582, 500
21,926, 000
6,806, 000
3,257, 500
7,235, 500
4, 719, 500
16,063,000
$18, 475, 000
93,629, 500
23,200, 000
25,132, 500
7,064, 000
4, 498, 000
27,433, 000
9, 793, 500
2,278, 500
11,412, 500
4, 000, 500
15,600, 000
$3, 786, 500
34,583, 000
4,508, 000
6,164, 500
2,195, 000
1,726, 000
8,177, 000
2,300, 000
1,032, 500
2, 210, 500
495, 000
7,100, 000
674, 026, 000
304, 877,000
161,307, 500
242, 517, 000
74,278, 000
Series
T D.
Series
TJ.
Series
TM2.
Series
TS. "
Series
TM4.
Series
T J2.
$5, 424, 000
60, 233, 500
6,138, 500
9,831, 000
1,884, 000
1,092, 500
9,330, 500
1,046, 500
1,864, 500
1,686, 500
1,945, 000
6,150, 000
$21,329,500
181, 370, 500
26,936, 000
29,205, 000
9,138, 500
4,537, 500
24,459, 500
9,900, 500
3,986, 500
9,313, 500
2,692, 500
19,100, 000
$10,059, 000
40, 566, 500
13, 822, 500
14,393, 000
4, 204, 000
2,227, 500
15,234, 000
4,621,000
2,050, 000
4, 744, 500
3,008, 500
9,322, 000
$10,455,000
93,616, 000
6,681, 500
28,550, 000
3, 8*9, 500
2,570, 500
16,522, 000
6,153, 000
2,600, 000
3,499, 500
1, 426, 000
12, 200, 000
$35,035,000
173,291, 000
38,466, 500
39,700, 000
14,044, 500
3,757,000
37,645, 000
14,703, 500
6,625, 000
11, 303, 500
3, 606, 500
23, 380, 000
$185,244,000
1,169,193,500
183,600, 500
244,559, 500
67,312, 500
46,868,000
288,322,000
87,979, 500
48,179,000
80,442, 500
45,268, 500
172,565, 000
106,626, 500
341,969, 500
124,252, 500
188,123, 000
401, 557, 500
2, 619, 534,500
Series
TM3.
Series
T D.
O
s
4f per cent. 4 | per cent. 4f per cent.
6 per cent. 5f per cent.
5f per cent.
6 per cent. 5f per cent. 5J per cent.
6 per centJ a n . 2,1920 F e b . 2,1920 Mar. 15,1920 J u n e 15,1920 J u l y 15,1920 Sept. 15,1920 Sept. 15,1920 Oct. 15,1920 Dec. 15,1920 Dec. 15,1920
Dec. 15,1920 Mar. 15,1920 Mar. 15,1921 June 15,1921 Mar. 15,1921 Mar. 15,1921 Sept. 15,1921 Mar. 15,1921 J u n e 15,1921 Dec. 15,1921
W
O
Allotments of Treasury loan certificates during 1920.
Maturing in 1920.
Oi
Maturing in 1921.
Federal Reserve Bank.
Series E.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
San Francisco.
Total
Rate of interest
Date issued
Maturity date..
$11,253,500
104,682,000
13,500,000
13,348,500
3,127, 000
4,101,000
18,359,000
4,277, 500
6,265,000
5,929,000
4,986,000
9,841,000
Series F .
$6,615,500
33,039,500
3,744,000
5,500,000
1,650, 000
2,271,000
6,313,500
3,135,500
3,979,500
1,948,000
3,092,000
6,214, 500
Series G.
$15,496,500
94,127,500
9,756,000
7,100,000
4,693,000
5,123,000
11,086,000
4,115,500
2,413,500
3,451,000
1,836,000
11,435,500
Series H.
$8,718,000
37,239,000
7,248,000
10,814,000
2,965, 500
2,063,000
14,080,000
4,237,000
1,341,000
4,309,000
2,014, 500
7,836,000
sries A.
$12,470,000
81,370,500
5,300,000
14,624,000
2,382,000
2,981, 500
25,132,000
5,625,000
2,214, 500
5,187, 500
2,567,000
16,750,000
199,669,500
77,503,000
170,633, 500
102, 865,000
176,604,000
4f per cent.
Apr. 1,1920
July 1,1920
5 per cent.
Apr. 15,1920
July 15,1920
5J per cent.
Apr. 15,1920
Oct. 15,1920
5J per cent.
May 17,1920
Nov. 15,1920
5| per cent.
June 15,1920
Jan. 3,1921
Series B.
Series C.
I
Total.
Series D
$96,298,500
547,487,000
80,722, 500
105,784,000
29,041,000
24,650,500
132,530,000
40,955,000
23,903,000
39,737,500
21,724,000
89,004,000
$8, 852,000
55,808,500
9,742,000
7,990,000
1,550,000
1,485,000
10,044,500
3,702, 500
721, 500
5,795,000
1,192, 500
7,900,000
$14,042,000
57,704,500
12,426,000
15,057,500
5,567,000
4,262, 500
20,250,500
6,285,500
2,093,000
6,000,000
2,544,000
11,422,000
$18,851,000
83,515,500
19,006,500
31,350,000
7,106,500
2,363, 500
27,264,500
9,576,500
' 4,875,000
7,118,000
3,492,000
17,605,000
114,783, 500
157,654,500
232,124, 000 1,231, 837,000
6 per cent.
5f per cent.
5| per cent.
July 15,1920 Aug. 16,1920 Nov. 15,1920
Jan. 15,1921 Aug. 16,1921 May 16,1921
%
W
O
>
ANNUAL REPORT FEDERAL RESERVE BOARD.
77
During the year, as fiscal agents of the Treasury, the Federal Reserve Banks redeemed 110,366,000 of interest coupons on Liberty and
Victory loan bond issues aggregating $623,843,000.
With the exception of the first Liberty 3J per cent permanent
bonds and the Victory loan 3 | and 4 | per cent notes, all Government
coupon war bonds, amounting to a total of $13,538,515,900 were issued in temporary form, each bond having four coupons attached
covering semiannual interest payments for two years. This policy
was adopted mainly to get the bonds more quickly into the hands of
subscribers, since the work of preparing permanent bonds with all
interest coupons attached required a great deal of time; also to avoid
waste in effecting subsequent conversions and exchanges.
Under regulations issued by the Secretary of the Treasury in December, 1919, the Federal Eeserve Banks were authorized to make
exchanges of permanent bonds, when ready, for temporary bonds,
and to make special arrangements with any incorporated bank or
trust company to receive advance deliveries of permanent bonds upon
pledging collateral security with the Federal Reserve Banks. During 1920 the Federal Reserve Banks made exchanges of 27,913,000
of temporary bonds, aggregating $6,745,085,000, and also made
13,009,000 exchanges and conversions of permanent Liberty bonds
and Victory notes, aggregating $1,986,297,000.
The Federal Reserve Banks also continued the sale of Government
savings securities through their savings divisions with the view of
encouraging the people of the country to save and invest in Government securities, and of developing a secondary market for the war
loan issues of the Government. War savings securities issued during
the year 1920 by the Treasury, through the Federal Reserve BanKs,
included, as in 1919, thrift stamps, war savings stamps, and Treasury
savings certificates. Government savings associations have been
organized in various industries and in schools throughout the country
to encourage saving.
During 1920 the following number and amount of the various
classes of war savings securities were sold by Federal Reserve Banks:
Number.
Treasury savings certificates —
War savings certificate stamps..
Thrift stamps
35,683
599,817
1,762,593
Amount
(maturity value).
$7,146,700
2,999,805
440,649
The Federal Reserve Banks, as fiscal agents and depositaries of
the Treasury, received during 1920 deposits of over 90 per cent of the
$6,435,000,000 paid to the Government on account of income and
excess profits taxes and other ordinary receipts. Treasury balances
carried with the Federal Reserve Banks have been subject to wide
78
ANNUAL REPORT FEDERAL RESERVE BOARD.
fluctuations owing to the seasonal character of the collections made
for the Government. The maximum, minimum, and daily average
balances of the Government with all Federal Reserve Banks during
the past year have been as follows:
Government deposits held by Federal Reserve Banks during 1920.
[In thousands of dollars.]
Month.
January..
February
March
April
May
June
July
Maximum.
91,195
133,913
108,251
42,810
76,699
77,477
29,358
Minimum.
16,831
9,445
14,323
8,777
18,303
10,754
7,921
Daily
average.
46,678
49,749
56,752
22,219
31,257
34,066
14,801
Month.
August
September
October...
November.
December.
Year
Maximum.
Minimum.
Daily
average.
58,414
135,178
60, 560
53,397
67,254
7,479
27,833
8,358
11,896
17,860
32,032
57,341
25,946
21,062
38,661
135,178
7,479
35,829
On December 31 there was a total of 8,609 special bank depositaries
for Government funds which had been designated by the Secretary
of the Treasury, through the Federal Reserve Banks. The average
daily Government balances wTith these depositaries during 1920 was
$191,618,000, and as security for these deposits the Federal Reserve
Banks approved and held collateral of an average face value, based
on end of month figures, of approximately $508,576,000.
CHANGES I N CONDITION OF MEMBER BANKS IN LEADING CITIES DURING
1920.
During 1920 the Board continued the publication of weekly figures
of principal assets and liabilities of member banks in about 100 of
the larger cities. The representative character of these reports is
proved by a comparison of certain common items shown in the condition reports on call dates of all member banks and in the consolidated weekly statements on the same or nearest dates of " reporting "
member banks. Thus on June 30, 1920, the " reporting" banks
are shown to have held over one-half of all Government securities
owned by all member banks, about 70 per cent of their total loans and
investments (exclusive of fixed investments), about 70 per cent of
their total net demand deposits, and about 45 per cent of their time
deposits. On the same date " reporting " member banks show about
the same amount of net demand deposits as all national banks and
larger borrowings from and larger reserve balances with the Federal
Reserve Banks. Practically the same proportions are found on
earlier call dates. It is evident therefore that the following review
of the development during 1920 of the "reporting" member banks
may be taken as a fair indication of general banking development
in the country during the past year. Owing to the increase in membership in the selected cities the number of reporting banks has
grown from 798 on January 2 to 821 on the last Friday of the year
ANNUAL, REPORT FEDERAL RESERVE BOARD.
79
and this increase in the number of institutions affects somewhat the
comparability of the figures in the appended table, though not
enough to invalidate any general conclusions that may be drawn
from an analysis of the data.
One of the salient features of banking development during the
past year is the large and practically continuous reduction in the
total of Government war obligations held, also of the loans supported
by these obligations carried by the reporting banks. Since January
2, the first Friday in the year, the total holdings of United States
bonds other than circulation bonds, Victory notes, and Treasury certificates, as well as paper secured by such obligations, declined from
3,026.6 to 2,033.4 millions, or from 18.1 to 12.1 per cent of the banks'
total loans and investments. This considerable decrease is due in
the first place to the practically continuous reduction in the amount
of Treasury certificates held among1' the investments of reporting
member banks. Reduction of the amount of Treasury certificates
outstanding, the fixing of higher interest rates on these securities,
and changes in discount rates of the Reserve Banks, discussed in
another part of the report, are the main factors responsible for the
gradual decrease in the holdings of certificates by the reporting
banks from 857 millions on January 2 to less than 500 millions by
the middle of March. Subsequent issues of tax and loan certificates caused substantial increases in bank holdings, and until the
latter part of June the amount held by the reporting banks and
largely used by them as collateral for loans at the Federal Reserve Banks was in excess of the low figure shown. On June 25
the total had again declined below the 500-million mark, by September 24 it fell below 400 millions, and by the end of October below
300 millions. About the close of the year total certificate holdings
are shown as 271.6 millions, a decline of 585.8 millions since the
beginning of the year.
As compared with the large reductions in certificates, the amount
of United States bonds held by the reporting institutions shows a
small increase from 636.4 to 643.9 millions. These totals are exclusive of the amounts of circulation bonds (held largely on deposit with the Treasury to secure national-bank note circulation)
which continued practically constant at about 269 millions. Victory
note holdings during the first three months of the year show a decline from 238 to slightly below 200 millions, the decrease representing apparenty to a large extent the amount of securities acquired
by customers on the part-payment plan. Since then but little change
in the holdings is seen, the amount reported about the close of the
year, 209.1 millions, being 18.9 millions larger than the low figure for
the year shown on October 8. Loans secured by Government obligations—by far the larger part secured by Liberty bonds and Victory
80
AisnsruAL REPORT FEDERAL RESERVE BOARD.
notes—which stood at 1,294.4 millions at the beginning of the year declined steadily to about 1 billion about the middle of the year. A
further reduction, though not so large,, took place since the end of
June, the total at the close of the year, 908.9 millions, showing a decline of 385.5 millions for the year.
In connection with the shrinkage in the volume of stock-exchange
operations in the New York market, loans secured by stocks and
bonds show a practically continuous decline from 3,390.6 millions
to less than 3 billions about the middle of August. Since then a
slight rise in this item is noted, especially during October, when
street loans carried by the fiscal agents of the British and French
Governments were called preparatory to the redemption on October
15 of the outstanding bonds of the loan of 1915, and reporting member banks in New York and Boston assumed the greater part of these
loans. At the close of the year these loans stood at 3,175.9 millions,
or 177.6 millions above the low point reported about the middle of
August. All other loans and investments, composed largely of commercial loans and discounts, show a practically unchecked upward
trend until October 8, when the peak for the year, 11,773.6 millions,
was reached, an increase of 1,764.4 millions since the beginning of
the year. Since then the banks report net liquidation under this
head of over 500 millions, the end-of-year total of 11,274.3 millions
differing but little from the total reported six months earlier.
Total loans and investments of the reporting banks follow a practically parallel course, reaching a high of 17,284 millions on October
15, a total almost 600 millions in excess of the corresponding January 2 figure. Since then considerable liquidation may be noted,
reducing the end-of-year total to nearly the January level. While
but little change is seen in the total volume of the banks' earning assets, there has been an almost steady growth of other loans and
investments at the expense of the less liquid investments in Government war securities and of loans secured by such obligations. Tims
at the opening of the year about 60 per cent of the taial loans and
investments consisted of "other loans and investments," i. e., largely
commercial loans and discounts, and slightly over 18 per cent of
United States war securities and loans secured by such obligations,
while at the close of the year the respective proportions were about
67, and slightly over 12 per cent. The figures of total loans and investments uniformly include amounts rediscounted with the Federal
Reserve Banks. A comparison of these figures with the amounts of
total borrowings by the reporting banks at the Federal Reserve Banks
indicates therefore the approximate extent to which the loan burden
of the member banks was shifted to the Reserve Banks. In January
the " ratio of accommodation " stood at 11.2 per cent. By the end of
February, in consequence of largely increased borrowings from the
ANNUAL REPORT FEDERAL RESERVE BOARD.
81
Reserve Banks, the ratio had gone up to 12.8 per cent. On November
5, when the peak of borrowings from the Reserve Banks is shown, viz,
2,278.4 millions, the ratio of accommodation stood at 13.4 per cent,
while on December 31, notwithstanding the substantially smaller
loans and investments, the ratio works out at slightly above 12.5 per
cent. On the whole the member banks, during the more recent
months, have come to lean more heavily upon the Reserve Banks,
notwithstanding the substantial liquidation of their own loans to
customers and of their investments in Government and corporate
securities. In keeping with the changes in their own loans and investments the member banks show a gradual reduction in the amount
of paper secured by Government war obligations, including Treasury certificates, so-called war paper, pledged with the Federal Reserve Banks and a more than corresponding increase in borrowings
on commercial paper proper. On January 2 out of a total of 1,870.5
millions of loans from the Federal Reserve Banks, loans secured
by Government war obligations constituted nearly 65 per cent,
while at the close of the year, out of total loans at the Federal
Reserve Banks of 2,098.1 millions, the proportion of " war paper "
was about 42 per cent.
Government deposits at the reporting banks show wide fluctuations, in connection with the fiscal operations of the Treasury, mainly
the flotation of the several series of loan and tax certificates, the high
points after the early part of the year coinciding with or following
the dates of the quarterly tax installments and the payment by credit
to Government account for Treasury certificates allotted to the
banks.
Other demand deposits (net), largely because of the substantial
withdrawals of balances by the country banks from their central
reserve and reserve city correspondents, show a decided downward
movement, especially during the latter part of the year. On December 31 the demand deposits of reporting banks aggregated 10,941.8
millions, or 653.7 millions less than on the first Friday of the year.
Time deposits, on the other hand, continued their upward course
with but few and unimportant recessions, reaching a high point of
2,852.3 millions at the close of the year, or about 519 millions higher
than on the first Friday in January.
Reserve balances of the reporting banks with the Federal Reserve
Banks, on the whole, followed a parallel course with demand deposits, declining during the year from 1,444.3 to 1,357.6 millions.
Cash in vault after the first two weeks in January continued below
400 millions, or at less than 4 per cent of the net demand deposits,
fluctuating within a maximum of 394 millions on July 9 and a
minimum of 347.2 millions on the first Friday in February.
Principal resources and liabilities of member banks in leading cities, by iveehs, during 1920.
00
to
[Amounts in thousands of dollars.]
United States securities.
Date
Number
of
reporting
banks.
Total.
VicBonds. tory
notes.
Certificates
of indebtedness.
Loans 1 and investments, exclusive of U. S.
securities.
Total.
Loans
secured
by
United
States
war
obligations.
Loans
secured
by stocks
and
bonds
other
than
United
States
bonds.
All
other.
Accommodation at Federal
Reserve Banks.
Deposits.
Reserve
balances
with
Federal
Reserve
Bank.
in
vault.
Cash
Net
demand
on which
reserve
is computed.
Time.
Government.
Total.
Paper
secured
by
United
States
war
obligations.
629,201
633,745
423,121
343,710
308,823
1,870,500
1,729,312
1,757,376
1,824,069
1,834,180
Paper
otherwise
secured
and unsecured.
Jan.
2...
9...
16...
23...
30...
798
802
803
804
804
2,000,983
2,036,353
1,934,316
1,875,834
1,844,650
905,243
905,030
892,074
882,180
869,426
238,385
236,674
226,391
222,167
216,731
857,355
894,649
815,851
771,487
758,493
14,694,235
14,692,944
14,783,939
14,798,570
14,776,928
1,294,409
1,274,424
1,274,507
1,267,850
1,226,679
3,390,046
3,378,58b
3,370,053
3,352,829
3,325,222
10,009,180
10,039,934
10,139,379
10,177,891
10,225,027
1,444,285
1,406,535
1,473,974
1,424,790
1,406,496
431,436
410,707
377,307
372,811
357,509
11,595,451
11,535,788
11,726,214
11,539,933
11,481,050
2,333,783
2,409,728
2,466,279
2,477,547
2,471,569
1,209,877
1,088,715
1,095,489
1,139,552
1,197,366
660,623
640,597
661,887
684,517
636,814
Feb.
6...
13...
20...
27.. .
804
804
806
807
1,810,590
1,771,705
1,764,078
1,747,161
866,878
863,416
866,997
865,507
212,644
212,394
211,064
208,823
731,068
695,895
686,017
672,831
14,797,975
14,882,689
14,810,721
14,924,151
1,196,200
1,178,844
1,163,364
1,167,675
3,301,979
3,232,398
3,178,040
3,185,281
10,299,796
10,471,447
10,469,317
10,571,195
1,417,159
1,398,371
1,399,334
1,408,792
347,218
383,279
369,959
370,431
11,482,807
11,557,091
11,423,157
11,463,252
2,494,912 205,168 1,894,745 1,225,998
2,500,862 156,814 1,982,914 1,242,491
2,514,725 59,387 2,057,396 1,301,329
2,524,393 42,097 2,142,857 1,341,450
668,747
740,423
756,067
801,407
Mar.
5...
12...
19...
26...
808
809
809
811
1,711,610
1,695,562
1,560,431
1,548,036
864,475
860,094
861,481
860,181
205,925
204,458
201,612
200,212
641,210
631,010
497,338
487,643
15,029,342
15,214,634
15,220,994
15,271,234
1,188,602
1,166,415
1,162,465
1,160,141
3,174,210
3,184,987
3,175,231
3,193,212
10,666,530
10,863,232
10,883,298
10,917,881
1,404,038
1,436,601
1,390,213
1,413,918
373,899
368,749
368,911
359,854
11,553,616
11,716,721
11,635,029
11,495,549
2,557,180 39,078 2,094,129
2,565,076 39,175 2,106,254
2,574,140 104,451 1,899,093
2,584,959 54,176 2,114,273
1,284,141
1,277,996
1,132,294
1,202,123
809,988
828,258
766,799
912,150
Apr.
2.. .
9...
16...
23...
30...
811
812
811
811
812
1,605,890
1,613,361
1,748,357
1,693,529
1,680,646
861,096
860,258
863,124
855,178
868,280
203,988
201,368
203,325
207,879
204,003
540,806
551,735
681,908
630,472
608,363
15,309,103
15,259,184
15,295,679
15,217,587
15,249,689
1,154,228
1,137,188
1,129,259
1,100,814
1,089,871
3,158,943
3,142,455
3,179,452
3,147,591
3,170,316
10,995,932
10,979,541
10,986,968
10,969.182
10,989,502
1,436,756
1,397,590
1,437,118
1,413,648
1,415,145
360,002
374,064
370,467
367,831
355,372
11,600,788
11,559,204
11,683,551
11,424,857
.11,463,745
2,586,610
2,598,756
2,608,587
2,621,640
2,619,027
1,144,808
1,164,706
1,190,299
1,194,560
1,206,765
903,411
844,168
863,105
905,972
929,582
May
il:::
21...
28...
810
814
814
814
1,673,828
1,675,457
1,712,304
1,684,364
874,924
873,212
873,932
871,723
203,247
203,932
203,102
203,455
595,657
598,313
635,270
609,186
15,219,965
15,308,359
15,226,949
15,261,748
1,077,164
1,090,554
1,056,016
1,061,590
3,139,528
3,104,178
3,123,514
3,115,454
11,003,273
11,113,627
11,047,419
11,084,704
1,373,730
1,423,402
1,394,550
1,415,397
373,651
371,216
368,332
362,749
11,390,817
11,563,867
11,506,283
11,561,381
2,637,736 144,761 2,091,558 1,177,480
2,655,286 59,200 2,127,673 1,235,868
2,643,342 115,113 2,059,213 1,166,875
2,645,705 75,599 2,060,138 1,159,436
914,078
891,805
892,338
900,702
4...
11...
18...
25...
812
813
814
814
1,680,154
1,658,312
1,587,992
1,560,929
873,414
874,136
876,867
879.115
203,299
202,987
200,472
198,690
603,441
581,189
510,653
483,124
15,246,036
15,267,965
15,332,911
15,371,519
1,043,804
1,039,981
1,025,945
1,026,011
3,111,038
3.095,502
3,113,141
3,107,025
11,091,194
11,132,482
11,193,825
11,238,483
1,419,343
1,428.233
1.368,251
1^393,709
384,894
373,541
366,091
358,060
11,536,371
11,597,508
11,514,285
11,347,041
2,667,977 52,582 2,091,833 1,149,077
2,670,708 52,021 2,053,653 1,155,702
2,684.497 267,613 1,833,270
956,335
2,691,880 262,861 1,945,977
996,347
942,756
897,951
876,935
949.630
June
120,939
125,188
189,849
170,822
150,136
2,048,219
2,008,874
2,053,404
2,100,532
2,136,347
July
2...
9...
16...
23...
30...
814
814
814
814
814
1,497, 540
1,474, 146
1,544, 080
1,530, 183
1,503, 039
878,711
878,733
876,344
873,818
875,398
198, 875
196, 462
194, 931
194, 266
193, 683
419,954
398,951
472.805
462,099
433,958
15,388,414 1,022,917
15,387,359: 1,011.771
15,349,0701 999,799
15,346,562! 981,184
15,354, 477 980,942
3,119, 466
3,079, 793
3,046, 7P4
3,059, 798
3,060; 319
11,246, 031
11.295, 795
11,302, 477
11,305, 580
11,313,216
1,445, 713
1,402, 700
1,421, 906
1,388, 021
1,368, 659
358,252
394,048
367,853
360,887
354,749
11,487.857 2,700,371
11,462', 965 2,698,969
11,553,677 2,698,479
11,426,887 2,715,438
11,401,052 2,705,852
107,790
44,104
121,561
142,276
115,287
2,056,430 1,020,463 1,035,967
2,051,187 1,010,632 1,040,555
1,989,863 984.077 1,005,786
1,953,430 971,935 981,495
1,973,034 965,675 1,007,359
Aug.
6...
13...
20...
27...
815
818
818
820
1 468 361
1 460 488
1 508 559
1 501 482
882,539
875,610
875.297
875,385
184, 597
191, 234
189, 809
196, 326
401,225
393,644
443,453
429,, 771
15,339,290
15,367,790
15,373,339
15,428,936
973,159
964,008
959,409
966,288
3,Oil, 063
2, 998, 313
3,006, 445
3,037 144
11,355,068
11,405, 469
11,407, 485
11,425, 504
1,374,806
1,392,231
1,362,501
1,372,075
360,179
354.506
352,058
357,872
11,313,530
11,382,363
11,246,938
11,252,428
2,721,624
2, 727,482
2,723,828
2,745,231
74,14fi
66,' 733
145,274
123,878
2.021,641
2,050,014
2', 086 496
2,128,399
Sept. 3...
10...
17...
24...
819 1 487 839 872,846
818 418 525 878,859
818 1 485 989 878,958
818 1 447 757 872,865
192, 943
189 282
191, 171
191, 472
422,050
350,384
415,860
383,420
15,440,132
15,504,996
15,571,385
15,692,489
957,380
958,861
955,843
950,324
3 044, 846
3 048, 133
3,040, 073
3 055 942
11,437,906
11,498, 002
11,575,469
11,686 223
1,394,957
1,389, 478
1,390,096
1,361,800
349,505
375,094
369,711
358,383
11,242,044
11,339,551
11,381,204
11,160,537
2,767,782 61,755 2,201,943 1,048,817 1,153,126
2,771,208 30,054 2,142,252 1,025.652 1,116,600
2,780,662 331,376 1,972,160 937,428 1,034,732
2,786,811 315,364 2,150,910 949,265 1,201,645
Oct.
820
822
822
823
823
1 388,932
1 386,963
1 429,897
1,385 ,238
1,364,616
872,459
878,874
876,726
877,872
876,237
190. 769
190, 240
191 418
193,494
193 386
325,704
317,849
361,753
313,872
294,993
15,755,454
15,801,641
15,854,099
15,717,622
15,652,800
949,015
936,934
923,722
914,407
911,548
3 100,173
3 091 151
3 162,257
3,105 903
3 141 976
11,706
11,773
11,768
11,697
11,599
266
556
120
312
276
1,343,551
1,384,680
1,422, 082
1,333, 215
1,365, 222
351,157
376,470
381,114
377,491
366,997
11,230,074
11,212,230
11,472,924
11,240,588
11,172,001
2,793,861
2,796,176
2,808,303
2,814,559
2,805,247
275,037
247,136
188,401
151,849
80,731
2,165,449
2,249,962
2,248,970
2,203,696
2,244,262
914,309
946,067
927,824
929,567
929,344
1,251,140
1,303,895
1,321,146
1,274,129
1,314,918
Nov. 5...
12...
19...
26...
823
825
824
824
1 358,134
1 353 310
1,425 ,347
1,391 ,420
879,284
880,039
884,449
884,160
193,627
195,217
195 496
194 081
285,223
278,054
345,402
313,179
15,577,202
15,478,362
15,368,227
15,340,592
911,168
908,702
893,912
905,677
3,087,514
3 049 018
3 044 Oil
3 054 789
11,578,520
11,520 642
11,430 304
11,380 126
1,335,235
1,369,928
1,343 951
1,286, 946
387,411
383,538
378,224
388,105
11,094,304
11,121,945
10,992,273
10,892,122
2,816,595
2,809,940
2,786,045
2,811,123
45,412
29,525
173,216
87,799
2,278,435
2,228,275
2,119,254
2,174,026
941,978
905,353
883,838
913,910
1,336,457
1,322,922
1,235,416
1,260,116
Dec.
823
823
824
824
821
1,355,458
1,337 ,615
1,462,844
1,416,388
1,391 ,368
883,034
886,469
891,505
903,474
910,690
196 279
197 569
197 853
202 093
209 079
276,145
253,577
373,486
310,821
271,599
15,274,727
15,243,930
15,340,382
15,275,764
15,359,120
900,878
896,565
901,217
888,648
908,908
3 050 082
3 064 266
3 103 600
3 126 572
3 175 906
11,323
11,283
11,335
11,260
11,274
767
099
565
544
306
1,332, 081
1,330 267
1,297, 231
1,333 808
1,357, 669
375,887
376,196
381,191
356,110
354;535
10,837,478
10,865,582
10,814,454
10,653,558
10,941,847
2,822,240
2,809,474
2,790,197
2,788,649
2,852,257
17,503
17,298
399,968
344,013
262,264
2,209,839
2,144,165
2,031,979
2,174,323
2,098,053
876,929
882,815
887,769
899,004
878,260
1,332,910
1,261,350
1,144,210
1,275,319
1,219,793
1. . .
8...
15...
22...
29...
3...
10. ..
17...
24. ..
31...
1
1,002,815
1,018,138
1,024,585
1,041,055
1,018,826
1,031,876
1,061,911
1,087,344
g.
O
n
Including rediscounts with Federal Reserve Banks.
00
CO
84
ANNUAL KEPORT FEDERAL RESERVE BOARD.
STATE BANK MEMBERSHIP.
On December 31, 1920, there were 1,487 State bank and trust company members of the Federal Eeserve System, with aggregate capi<
tal and surplus of $1,033,894,000 and aggregate resources of $10,«
370,253,000, as compared with 1,181 State bank and trust company
members on December 31, 1919, with aggregate capital and surplus
of $891,201,000 and aggregate resources of $9,913,707,000. In the following table are shown, by Federal Eeserve districts, the number of
State bank and trust company members, their capital and surplus,
and total resources on December 31, 1919, and on December 31, 1920:
[Amounts in thousands of dollars.]
Dec. 31,1920.1
Dec. 31, 1919.
Federal Reserve district.
Bos ton
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Total
1
Number.
Capital
and
surplus.
36
122
38
97
46
64
326
68
86
47
114
137
64,385
320,123
70, 455
101, 871
19,285
35,553
157, 046
44,354
10, 455
8,353
10,391
48,930
719,918
t, 283, 636
370, 462
803, 439
166, 007
389, 854
L, 751, 177
409, 086
107, 139
119, 953
97,103
695, 933
1,181
891,201
9,913,707
Total
resources.
Number.
39
134
46
110
56
84
358
91
121
63
187
1,487
Capital
and
surplus.
Total
resources.
72,575
357,276
72,367
128,832
23,761
40,860
176,231
48,359
13,271
12,057
20,054
68,251
779,598
4,150,695
388,931
1,042,935
169, 404
360,730
1,850,931
402,598
128,287
128,337
142,135
825,672
1,033,894
10,370,253
Figures for Dec. 31, 1920, partly estimated.
The subjoined tabular statement shows a comparison between the
number, capital and surplus, and total resources of member banks;
member banks, and nonmember banks eligible for membership; and
all banks in the United States, exclusive of mutual savings and
private banks. Figures are as of June 30, 1920, the latest date on
which figures are available for comparative purposes.
[Amounts in thousands of dollars.]
Capital and surplus.
Number.
1. Member banks:
National
State banks and trust companies
Total
2. Member banks, and nonmember
banks eligible for membership:
Member banks
Eligible nonmember banks
Total .
3. All banks in the United States,
exclusive of mutual savings and
private banks:
Member banks
Nonmember banks
Total. . .
Per cent
of total.
Amount.
Per cent
of total.
Aggregate resources.
Amount.
Per cent
of total.
8,025
85.4
2,209,277
69.1
22,187,459
68.9
1,374
14.6
988,196
30.9
10,006,842
31.1
9,399
100.0
3,197,473
100.0
32,194,301
100.0
9,399
8,910
3,197,473
1,128,554
73.9
26.1
32,194,301
9,342,860
77.5
22.5
18,309
51.3
48.7
100.0
4,326,027
100.0
41,537,161
100.0
9,399
19,316
32.7
67.3
3,197,473
1,553,313
67.3
32.7
32,194,301
13,829,370
69.9
30.0
28,715
100.0
4,750,786
100.0
46,023,671
100.0
85
ANNUAL REPORT FEDERAL RESERVE BOARD.
The number of State banks and trust companies, members, and
nonmembers eligible for membership, classified according to (a) institutions with combined capital and surplus of $1,000,000 and over,
and (h) institutions with combined capital and surplus of less than
$1,000,000, as of June 30,1920, are shown in the following statements:
[Amounts in thousands of dollars.!
(a) BANKS AND TRUST COMPANIES WITH COMBINED CAPITAL AND SURPLUS OF
$1,000,000 AND OVER.
Members.
Federal Reserve district.
Number.
Boston
New Y o r k . . . .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Total:
June 30,1920.
June 30, 1919.
182
Nonmembers.
Capital
and
surplus.
Capital
and
surplus.
57,300
333,208
62,048
88,409
15,645
29.650
128.550
33,350
613,132
i, 854,147
309,805
656,880
109,711
277,907
., 306,960
261,808
3,000
2,100
40,966
57,985
10; 203
585,809
794,226
634,436
8,044,347
6,827,182
134
136
Total
resources.
19,800
72,432
63,396
41,740
39,450
2,050
23,235
8,300
4,400
1,250
1,140
24,243
162,069
582,269
287,685
259,269
189,043
41,051
171,416
57,433
16,360
1,463
9,339
278,467
301,436
318,548
2,055,864
2,271,880
(b) BANKS AND TRUST COMPANIES WITH COMBINED CAPITAL AND SURPLUS OF LESS
THAN $1,000,000.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis.
Minneapolis
Kansas City
Dallas
San Francisco
Total:
June 30,1920
June 30, 1919
22
79
28
91
43
59
308
74
107
54
158
169
11,650
20,416
9,049
19,993
6,714
10,276
46,544
14,291
12,112
6,533
14,330
22,062
130,258
262,420
70,048
194,507
53,974
83,699
536,622
135,098
117,383
65,029
105,330
208,127
1,192
193,970
158,475
1,962,495
1,625,400
900
169
244
385
578
625
734
487
622
39,084
48,033
79,864
77,484
65,255
54,213
171,888
71,704
45,732
67,535
34,539
71,787
405,065
510,395
606,484
646,210
515,634
453,118
1,710,200
552,169
480,209
550,230
227,720
629,562
8,776
8,024
827,118
755,817
7,286,996
6,275,743
2,101
1,017
767
1,047
86
ANNUAL KEPORT FEDERAL RESERVE BOARD.
The total number, capital and surplus, and resources of State banks
and trust companies, both members, and nonmember institutions
reported as eligible for membership on the basis of capital requirements; also ratios of number, capital and surplus, and resources of
State bank and trust company members to total number, capital and
surplus, and resources of all State banks and trust companies other
than those not eligible for membership on the basis of capital requirements, as of June 30,1920, are set forth in the following table:
[Amounts in thousands of dollars.]
Number of banks.
Capita land surplus.
1.
4.
5.
2.
6.
3.
Federal Reserve Member,
Member,
district.
and non- Mem- Per and non- Member Per
member bers. cent member banks. cent
eligible
(5*4).
(2-9-1). eligible
banks.
banks.
Boston.
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total:
June 30,19.
June 30,19.
215
400
454
706
695
808
2,450
1,106
877
1,104
648
821
36
132
40
109
53
72
339
86
107
56
160
184
10,284
9,202
1,374
1,042
16.7
33.0
8.8
15.4
7.6
8.9
13.8
7.8
12.2
5.1
24.7
22.4
127,834 68,950
474,089 353,624
214,357
71,097
227,626 108,402
127,064 22,359
96,189
39,926
370,217 175,094
127,645 47,641
62,244
12,112
78,318
9,533
52,109
16,430
159,058 63,028
13.4 2,116,750
11.3 1,867,276
988,196
792,911
Total resources.
7.
Member,
and nonmember
eligible
banks.
8.
9.
Per
Member cent
banks. (S-v-7).
53.9
74.6
33.2
47.6
17.6
41.5
47.3
37.3
19.5
12.2
31.5
39.1
743,390
1,310,524
5,209,231 4,116,567
379,853
1,274,022
851,387
1,756,866
163,685
868,362
361,606
855,775
3,725,198 1,843,582
396,906
1,006,508
117,383
613,952
123,014
674,707
115,533
352,592
793,936
1,701,965
56.7
79.0
29.8
48.5
18.9
42.3
49.5
39.4
19.1
18.2
32.8
46.6
46.7
42.4
19,349,702 10,006,842
17,000,205 8,452,582
51.7
49.7
In the table which follows are shown the total resources as of June
30, 1920, and June 30, 1919, of (1) all member banks, both National
and State institutions; (2) nonmember banks and trust companies
reported as eligible for membership in the Federal Reserve System;
(3) all banks in the United States, exclusive of mutual savings and
private banks, and (4) the ratio of total resources of all member
banks to total resources of nonmember banks reported eligible for
membership, and the ratio of total resources of all member banks to
total resources of all banks in the United States, exclusive of mutual
savings and private banks. It will be noted that the resources of
State banks and trust companies which are members of the system
are greater by $664,000,000 than those of nonmember banks reported
as eligible for membership, a reversal of the situation on June 30,
1919, when the resources of State bank and trust company members
were $95,000,000 less than those of nonmember banks reported as
eligible for membership.
87
ANNUAL REPORT FEDERAL RESERVE BOARD.
Total resources.
(1) Member banks:
National . .
. .
...
State banks and trust companies
Total
(2) Nonmember State banks and trust companies reported as eligible
for membership in the Federal Reserve System
(3) All banks in the United States, exclusive of mutual savings and
private banks:
National
.
.
State banks and trust companies
Total
(4) Ratio of total resources of all member banks to total resources of
nonmember banks reported eligible for membership (per cent)...
Ratio of total resources of member banks to total resources of all
banks in the United States, exclusive of mutual savings and
private banks (per cent)
June 30, 1920.
June 30, 1919.
$22,187,459,000
10,006,842,000
$20,791,147,000
8,452,582,000
32,194,301,000
29,243,729,000
9,342,860,000
8,547,623,000
22,187 459,000
23,836,212,000
20,791,147,000
20,942,856,000
46,023,671,000
41,734,003,000
344.6
342.1
70.0
70.1
EARNINGS AND OPERATING EXPENSES OF FEDERAL RESERVE BANKS.
In meeting the credit demands of their customers during the year
member banks have found it necessary to ask for an increasing
amount of rediscount accommodation at the Federal Reserve Banks
(taking proceeds to a large extent in the form of Federal Reserve
notes), and this fact, together with the higher discount rates approved by the Federal Reserve Board during the early part of the
year as a part of its protective credit policy, has resulted in increasing the gross earnings of all Federal Reserve Banks combined from
102 millions in 1919 to 181 millions in 1920. Over 82 per cent of
these earnings came from paper discounted for member banks, the
average daily holdings of which aggregated 2,530 millions during
1920, as compared with 1,908 millions during 1919.
The Board takes this opportunity again to point out that the Federal Reserve Banks are not operated primarily for profit and that
the large earnings are the result of abnormal demands on their credit
resources growing out of postwar conditions. Now that prices have
declined from the high level reached in 1919, it may be expected
that credit requirements, both for reserve balances at the Federal
Reserve Banks and for Federal Reserve notes, will, after conditions
have become stabilized, be less heavy.
Operating expenses of the Federal Reserve Banks have continued
to advance during the year, chiefly because of the increased volume
of business transacted, especially by the discount and clearing and
collection departments. The number of bills discounted increased
from 587,000 in 1919 to over 1,000,000 in 1920, and the number of
checks collected for the account of member and clearing nonmember
banks from 305,159,000 in 1919 to 446,671,000 in 1920.
45525°—21
7
88
ANNUAL, REPORT FEDERAL RESERVE BOARD.
Besides adding to the number of their officers and employees in
order to transact the increased volume of business, the banks have
enlarged materially the staffs of their examination departments in
order to enable them to participate in the examinations made by
State authorities of State bank and trust company members, and to
make independent examinations where necessary,, The following
table shows the number of officers and employees of each Federal
Reserve Bank at the close of the years 1919 and 1920:
Number of omcers and
employees.
Federal Reserve Bank.
Dec. 31,
1919.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago .
St Louis .
Minneapolis
Kansas City
Dallas
San Francisco.
Total
755
2,962
647
626
401
386
1,199
541
287
583
505
567
9,459 |
Dec. 31,
1920.
776
2 OS 6
842
969
667
446
1 731
851
459
863
613
1 132
12 285
Because of the trend of living expenses, and in order to meet the
competition of banks and corporations, moderate increases in salaries
have been approved for both officers and employees of the Reserve
Banks. In no case, however, are the salaries paid bank officers as
high as those paid officers of corresponding rank in the larger commercial banks. Average salaries paid by each Federal Reserve Bank
to officers and employees as of December 31, 1920, are as follows:
Federal Reserve Bank.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco.
Average
salary of
omcers.
$9,269
11,275
10,182
7,738
7,014
5,426
6,304
6,486
7,240
5,158
5,895
5,581
Average
salary of
employees.
$1,271
1,460
1,259
1,360
1,189
1,149
1,310
1,209
1,262
1,209
1,271
1,366
As the result of the large increase in the net earnings available
for dividends, surplus, and franchise taxes, all but three of the
Federal Reserve Banks have accumulated surplus accounts in excess
of 100 per cent of their subscribed capital stock as authorized by
the amendment of March 3, 1919, to section 7 of the Federal Reserve
ANNUAL REPORT FEDERAL RESERVE BOARD.
89
Act, which provides that after dividend requirements have been
fully met the net earnings of each bank shall be paid to the United
States as a franchise tax, except that the whole of such net earnings
shall be paid into a surplus fund until it shall amount to 100 per
cent of the subscribed capital stock of such bank and that thereafter
10 per cent of such earnings shall be paid into the surplus. In the
table given below are shown the normal surplus, the supersurplus,
or the surplus created by carrying to surplus account 10 per cent
of the net earnings available after the normal surplus equals 100
per cent of subscribed capital, and the percentage relationship
between the total surplus and the subscribed capital stock of each
Federal Reserve Bank on January 1, 1921.
[Amounts in thousands of dollars.]
Surplus, Jan. 1, 1921.
Federal Reserve Bank.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City*...
Dallas
San Francisco.
Total.
Normal
surplus.
15,436
52,745
16,970
20,305
10,538
8,106
2.7,825
8,346
Supersurplus.
275
Ratio of
Total.
8,910
6,033
13,853
6,922
58
249
341
15,711
56,414
17,010
20,305
10,561
8,343
28,980
8,346
6,980
9,159
6,033
14,194
195,989
6,047
202,036
i 3,669
40
23
237
1,155
Subscribed surplus to
capital, subscribed
Jan. 1,1921. capital,
Jan. 1,1921.
15,436
52,745
16,970
21,406
10,538
8,106
27,825
8.730
6'. 922
8,910
8,197
13,853
Per cent.
101.8
107.0
100.2
94.9
100.2
102.9
104.2
95.6
100.8
102.8
73.6
102.5
199,638
101.2
i After deduction of 11,000,000 charged to supersurplus account and credited to general reserve account
after closing of books on Dec. 31, 1920.
The Board has ruled that any contingent reserves which a Federal
Reserve Bank may desire to set up must be deducted from its supersurplus and not from current earnings.
Besides increasing their surplus accounts to over 100 per cent
of their subscribed capital, nine of the Federal Reserve Banks paid
franchise taxes to the United States aggregating $60,725,000.
At the end of 1919 the available net earnings of the New York
Federal Reserve Bank were sufficient to enable it to increase its
surplus to $45,082,000, or $300,000 in excess of 100 per cent of its
subscribed capital stock, and normally the bank would have carried
only 10 per cent of its net earnings at the close of 1920 to surplus.
Owing, however, to the increase in the capital stock and surplus of
existing member banks and to the admission to membership of
eligible State banks and trust companies, the subscribed capital
stock of the New York bank shows an increase of $7,964,000 for the
year 1920. Therefore, the bank was authorized to transfer an
equivalent amount to its normal surplus account out of its net earn
90
ANNUAL, REPORT FEDERAL, RESERVE BOARD.
ings for 1920. Of the balance of its net earnings 10 per cent was
transferred to supersurplus account and 90 per cent paid to the
United States Government as a franchise tax.
The table below shows the gross and net earnings of each Federal
Eeserve Bank for the year 1920, the dividends paid, the amounts
transferred to surplus account, and the amounts paid to the United
States Government as franchise taxes.
[Amounts in thousands of dollars.]
Federal Reserve Bank.
Net
debits to
Gross Current
current
net
earnings. earnings.
net
earnings.
Net earnings available for Dividend Transdivito
pay- ferred
dends,
surplus
surplus,
account.
and franchise tax.
Boston
New York....
Philadelphia..
Cleveland
Richmond....
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco
12,273
60,525
11,849
14,459
6,903
7,476
30,303
7,180
5,307
7,410
4,905
12,707
10,235
53,526
9,671
11,988
5 387
6,091
25,850
5,256
4,292
5,552
3.355
10,204
138
398
606
168
149
81
*26
380
161
11
127
95
10.273
53,128
9,005
11,820
5,238
6,010
Total...
181,297
151,407
2,112
Franchise
tax paid
to IT. S.
Government.
7,352
12,333
8,204
11,216
4,740
3,648
14j689
4,622
3,411
3,043
3,003
6,655
2,474
39,318
364
25,876
4,876
4,131
5,541
3,228
10,109
447
1,477
497
604
293
225
793
254
196
258
225
385
149,295
5,654
82,916
60,725
205
2,137
10,394
524
2,240
3,069
i Credit.
CHANGES IN RATES OF EARNINGS DURING 19 20.
During the year the rates of earnings on discounted bills, which
account for over 82 per cent of the total annual gross earnings of the
Federal Reserve Banks, show a steady advance from 4.71 in January
to 6.42 in December. Upward revision of discount rates on all
classes of paper in January and the further advances by four of the
Federal Reserve Banks of the rates on commercial paper in June,
together with the adoption during April and May of graduated or
progressive rates by four Federal Reserve Banks, account for the
more striking increases in the rates of earnings on discounted bills
shown during those months. Another factor which had a noticeable
effect throughout the year is the gradually decreasing proportion of
advances against Treasury certificates, on which as a rule the banks
charge lower rates, due both to a steady decrease in the actual amount
of such paper and to the more than proportionate increase in the
volume of paper rediscounted at the higher ordinary rates. The
operation of this factor is more apparent during the second half of
the year, during which the rates on all other classes of discounts
continued without change, and account chiefly for the gradual rise in
the rate of earnings on all discounts from 6.12 per cent in July to
6.42 in December. For the entire year the average rate of earnings
91
ANNUAL REPORT FEDERAL RESERVE BOARD.
from discounted paper is given as 5.88 per cent, compared with 4.23
per cent for the calendar year 1919 and 4.24 per cent for the war
year of 1918.
Average rates of earnings on acceptances bought in open market
during the first half of the year increased in about the same proportion as the rates on discounted paper. Since July the average
monthly rates on acceptances have shown a slight downward tendency, apparently in connection with the increasing investment demand for this class of paper by country banks, savings banks, and
industrial corporations.
Monthly changes in the rates earned on United States securities are
much more moderate, depending to a large extent upon the average
amount of special 2 per cent certificates held during each month by
the Federal Eeserve Banks. These holdings were particularly large
and prolonged during March and April, when the lowest monthly
rates of earnings are shown and were sufficiently large to depress the
average rate in July. The higher rates in September and December are due to the substantial amounts of tax certificates acquired
early in the month by the Federal Reserve Bank of New York from
New York City members and carried to maturity by the Federal
Reserve Banks. Temporary purchases of certificates and other Government securities from nonmember banks under repurchase agreements have likewise had an uplifting effect upon the average rates of
earnings on United States Government securities.
On the whole, monthly rates of earnings on all classes of earning
assets were higher and steadier during the second part of the year
than during the first part. The average rate received by the Federal
Reserve Banks on all classes of earning assets during the year under
review was 5.50 per cent, compared with 4.04 per cent in 1919 and
4.12 per cent in 1918.
Annual rates of earnings from each class of earning assets, by months, during
1920. '
All
classes.
January
February
March
April
May
.Tune
July
August
September
October
November
December
Average for year
Bills
Bills dis- bought
counted. in open
market.
Per cent. Per
4.46
4.88
5.12
5.23
5.36
5.51
5.72
5.81
5.81
5.94
5.98
5.98
5.50
United
States
securities.
cent. Per cent. Per cent
4.79
4.71
2.18
5.20
5.06
2.18
5.49
5.47
2.10
5.58
5.70
2.10
5.66
5.77
2.22
5.89
5.98
2.24
6.12
6.07
2.15
6.19
6.07
2.22
6.22
6.06
2.27
6.34
6.07
2.20
6.41
6.03
2.17
6.42
6.05
2.43
5.88
5.66
2.21
92
ANNUAL REPORT FEDERAL, RESERVE BOARD.
BRANCHES OF FEDERAL RESERVE BANKS AND THEIR OPERATIONS.
On December 31, 1920, there were 22 branches of Federal Reserve
Banks in actual operation, those at Los Angeles, Calif., and Oklahoma City, Okla, authorized by the Federal Reserve Board during
1919 to be established by the Federal Reserve Banks of San Francisco and Kansas City, having been opened for business on January 2 and August 2, 1920, respectively. It is expected that the
Helena (Mont.) branch of the Federal Reserve Bank of Minneapolis, also authorized during 1919, will be opened for business February 1, 1921. No new branches were authorized by the Board during
the year, nor are any applications for the establishment of branches
now pending.
Experience gained in the operation of the branches has led to their
development along two main lines: The branches located at Cincinnati, Pittsburgh, Birmingham, Jacksonville, Nashville, and Oklahoma City confine their operations largely to clearing and collection of checks, and to supplying currency, both paper and coin, to
member banks in branch territories; while the remaining 16 branches
render practically the same services to member banks in the branch
territories as the parent banks render to member banks in other parts
of the districts.
While the first-mentioned branches do not engage in discount operations, they receive and transmit to the parent bank applications
of their member banks for discounts and advances, and when necessary arrange by telegraph for immediate credit for such paper on
the books of the head office. Branches in the second group carry the
reserve balances of member banks on their own books, and, with the
exception of the Buffalo branch, which carries the reserve balances
of Buffalo City members only, participate in the daily clearing
through the gold settlement fund maintained by the Federal Reserve Board at Washington. These branches telegraph the Federal
Reserve Board each day the gross amount of items collected for the
account of each other Federal Reserve Bank and direct-settling
branch. After the settlement has been made by the Board, the
branches are notified of the amounts credited to them by each other
Federal Reserve Bank and direct-settling branch. As the branches
do not, however, maintain separate balances in the gold settlement
fund, the net debit or credit of each branch is settled through the
balance maintained by the parent bank.
The following table shows the volume of business handled by
each branch and by the Savannah agency during the year 1920:
ANNUAL REPORT FEDERAL RESERVE BOARD.
93
Operations of Federal Reserve Branch Banks during the calendar year 1920.
Buffalo
Cincinnati
Pittsburgh
Baltimore
Birmingham
Jacksonville
Nashville
New Orleans
Detroit
Little Rock
Louisville
Memphis
Denver
Oklahoma City3.,
Omaha
El Paso
Houston
Los Angeles5
Portland
Salt Lake City....
Seattle
Spokane
Total
Savannah agency.
Currency (coin and
paper).
Number.
Amount.
Received.
Paid out.
Member
Volume
banks'
of paper Average
reserve
daily
discounted
bill
balances
and
31,
bought. holdings. Dec.
1920.
Thousand
items.
Thousand
dollars.
Thousand
dollars.
Thousand
dollars.
Thousand
dollars.
Items handled.1
7,980
11,085
14,183
12,344
2,S07
2,507
3,471
2,793
6,337
3,957
5,320
2,852
6.373
4,537
7,976
2,629
5,566
8,016
2,947
5,469
3,724
2,562
2,657,913
3,330,662
5,952,400
4,810,793
1,139,355
125,435
37,560,687
606,091
897,591
1,215,294
2,902,206
698, 233
1,278,526
722,128
1,580, 919
908,230
1,702,921
509,737
1,382,258
1,716,810
748,856
1,258,938
1, (Jll, 875
528,951
151,723
98,791
307,117
89,861
47,891
45,480
27,449
93,909
295,753
27,431
64, 686
61,204
33, 219
4 1,597
23,547
28,806
34,250
80,703
30,429
13,696
50,384
8,782
172, 495
86,516
365.214
132,668
36,691
33,856
21,862
76,224
335.215
24,540
51,934
54,802
24,199
4 692
29,654
19,929
34,928
89,0S9
31,233
17,210
43,459
13,677
1,616,708
11,663
1,696,087
9,388
Thousand Thousanddollars.
dollars.
2 560,767
218,725
924,665
19,219
709,825
1,618, 206
151, 485
436,511
264,346
232,616
42,104
63,955
9,293
16, 430
17,805
11,833
15,735
33,057
3,585
9,796
5,828
13,886
382,598
72,963
260, 786
186,215
214,395
479,719
217,*24
123,957
33,182
6,819
15,062
14,186
8,939
34,363
6,458
10,201
14,088
4,100
11, 266
29,203
13,972
8,334
12,281
5,461
290,630
218,536
6,836,678
1 From Dec. 16, 1919, to Dec. 15, 1920, except that in the case of Oklahoma City and Los Angeles, the
period
covered dates from opening of branch.
2
Buffalo city banks only.
3 Opened for business Aug. 2, 1920.
* For the month of December, 1920.
& Opened for business Jan. 2, 1920.
BUILDING OPERATIONS.
In most of the Federal Reserve Banks the question of securing
adequate and permanent quarters has assumed a larger importance
during the past year. Additional activities and a greatly increased
volume of work has in some banks produced a congestion which has
created great discomfort and necessitated the scattering of departments into several buildings. Working conditions have developed
which impair efficiency and are not without hazard to the proper
custody and handling of money and securities.
Early in the year the Federal Reserve Board determined that
building operations on the part of the banks should be deferred as
long as possible in order not to divert the labor and material which
was then so urgently needed for business structures and homes. At
the close of business on December 31, 1920, the real estate and build-
94
ANNUAL REPORT FEDERAL RESERVE BOARD.
ing account of each Federal Reserve Bank stood upon its books as
follows:
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
$2, 699, 623
4, 092, 497
500,000
1, 519, 662
1, 277, 388
541,273
2, 350, 916
541, 414
590, 000
1, 041, 326
l, 638, 536
253, 004
17, 045, 639
In 1919' it became evident to the Board that the quarters occupied by the Federal Reserve Bank of Boston were strikingly inadequate and the bank was authorized to proceed with the construction of a new building upon land previously acquired. The work of
tearing down old buildings on the property was finished May 21,
1920, and excavations began on May 29, 1920. The end of 1920 finds
the new building entirely inclosed, with progress being made toward
finishing the interior. Delays have been encountered in procuring
steel and limestone, but it is expected that the building will be
finished and ready for occupancy by the end of 1921.
Actual construction has not begun upon the proposed new building for the Federal Reserve Bank of New York, although land
has been acquired, the architects have been selected, and preliminary
plans have been given careful attention by the officers and directors
of the bank. During the year 1920, the Board approved the purchase of additional land by the Federal Reserve Bank of New York,
and the erection thereon of a fireproof storage building for the safekeeping of the bank's files of correspondence and records. This
storage building will also provide working space for a number of
the bank's employees pending completion of the bank building
proper. The building occupied by the Buffalo branch of the Federal
Reserve Bank of New York is leased.
The Federal Reserve Bank of Philadelphia owns the building
which it occupies and which it purchased prior to the current year.
The bank also rents additional space for storage purposes. The
building has been remodeled to fit it for bank purposes, and a new
and adequate vault is now under construction. It is expected that
this vault will be ready for use early in 1921.
The Federal Reserve Bank of Cleveland has purchased suitable
ground but has not begun actual construction. Architects, however,
ANNUAL REPORT FEDERAL RESERVE BOARD.
95
have been selected and tentative plans and drawings have been submitted to the Federal Reserve Board and approved. The proposed
building is carefully planned, with a view to practical utility.
Demolition of old buildings preliminary to new construction will
probably begin early in 1921. The Pittsburgh branch of the Federal Reserve Bank of Cleveland occupies a building which, during
the past year, has been purchased by the bank. Necessary modifications in this building have been authorized, including a provision
for additional vault space. The Cincinnati branch of the Federal
Reserve Bank of Cleveland occupies leased quarters, but the bank
was authorized in October to purchase certain property for the
permanent quarters of the branch.
The new building of the Federal Reserve Bank of Richmond was
authorized in May, 1919, and the work of construction began shortly
afterwards. Many delays have been occasioned by inability to
secure material, and the building is yet far from finished. In order
to provide for additional space, the need for which was not foreseen
at the time the building was planned, it has been necessary during
the past year to provide an additional story on the original building, and to acquire additional ground for the erection of an annex.
The bank, during 1920, also purchased property in Baltimore, upon
which it is intended to erect a permanent home for the Baltimore
branch.
The Federal Reserve Bank of Atlanta is occupying permanent
quarters, including the annex authorized in 1919 and completed in
1920; and no further additions or alterations have been found necessary, except that some additional equipment for the vault has been
authorized. The branches at Birmingham. Nashville, Jacksonville,
and New Orleans are occupying leased quarters. A bank building
was purchased in 1919 for the New Orleans branch, but under the
terms of the deed possession has not yet been given by the former
owners.
The Federal Reserve Bank of Chicago, during 1920, razed the
buildings upon the ground previously acquired, secured the Federal Reserve Board's approval of all plans and contracts, and commenced actual building operations on November 1, 1920. It is estimated that the total cost of the new building, including vaults, will
be approximately $7,500,000. The contract calls for completion on
April 1, 1922. The bank leases the quarters occupied by its Detroit
branch.
The Federal Reserve Bank of St. Louis occupies leased quarters,
and while it has purchased a site for a permanent home it has submitted to the Board no definite plans, and immediate operations are
not contemplated. The bank leases quarters for its Memphis and
96
ANNUAL, REPORT FEDERAL RESERVE BOARD.
Little Rock branches, and owns the building in Louisville occupied
by the Louisville branch. A lot has been acquired for the Little Rock
branch, upon which a new building will be erected in 1921.
The Federal Reserve Bank of Minneapolis in 1919 purchased a
site for a permanent building and selected an architect. Construction, however, has been deferred, and no plans have been submitted
for approval. It is the intention of this bank to proceed with the
foundation work in 1921, and to finish the building in 1922. The
Helena branch of the Federal Reserve Bank of Minneapolis will
occupy a building purchased by the bank in 1919 and which is being
remodeled for bank purposes.
The Federal Reserve Bank of Kansas City acquired a building site
in 1918. On April 16, 1920, a contract was let to construct a building
having 16 working floors and basement, burglar-proof vaults, etc.,
for the sum of $3,604,000. Construction was begun June 1, 1920.
Excavations, foundation walls, and piers have been finished, and
the erection of the steel has been commenced. Serious delays have
been experienced in the matter of transportation of steel, but much
of the material necessary to complete the building is now on the
ground. The contract calls for the building completed for occupancy
on October 1, 1921.
The Denver and Oklahoma City branches of the Federal Reserve
Bank of Kansas City are housed in rented quarters, but the Omaha
branch occupies a building purchased by the bank during 1920 at a
cost of $165,000.
The new building of the Federal Reserve Bank of Dallas is near
completion, and should be available for occupancy by some of the
departments of the bank early in 1921. Upon the approval of the
Federal Reserve Board, contracts were let June 17, 1919, and the
work of construction was begun July 5, 1919. It is estimated that
the total cost of the building and vaults complete will be approximately $1,575,000. The Federal Reserve Bank of Dallas has recently
constructed a new building for its El Paso branch at a total cost of
$150,000. The Houston branch is occupying leased quarters, but the
bank was authorized by the Board, on October 15, 1920, to purchase a
lot in Houston at a cost not to exceed $67,500. This lot was subsequently purchased for $65,000, but plans for a new building have not
yet been prepared.
The Federal Reserve Bank of San Francisco was authorized by the
Board on August 17, 1920, to begin immediately the construction
of a new building upon land previously acquired. The estimated
cost of this building is $2,376,000, exclusive of commission of architect and superintendent of building construction, which together will
be 9 per cent. Old structures which stood upon the site for the new
building have for the most part been razed, and during the latter
ANNUAL, REPORT FEDERAL RESERVE BOARD.
97
part of 1920 the erection of the new building was begun. All
branches of the Federal Reserve Bank of San Francisco occupy
leased quarters.
AMENDMENTS TO THE FEDERAL RESERVE ACT.
During the past year the Federal Reserve Act has been amended
but once. Certain laws, however, have been passed and others
amended relating to the Federal Reserve System and to the operation
of national banks, which in effect modify the provisions of the Federal Reserve Act. These laws will be taken up in order.
By act approved April 13, 1920, section 14 of the Federal Reserve
Act was amended so as to authorize Federal Reserve Banks, subject
to the approval, review, and determination of the Federal Reserve
Board to establish discount rates graduated or progressed on the
basis of the amount of the advances and discount accommodations
extended by the Federal Reserve Bank to the borrowing bank. The
purpose of this amendment was to check excessive borrowing from
Federal Reserve Banks by any one member bank by making it
possible for the Federal Reserve Banks to charge higher rates against
a member bank which is overborrowing than against one which'
limits its borrowings to a reasonable amount. Pursuant to this
amendment the Federal Reserve Banks of Atlanta, St. Louis, Kansas
City, and Dallas have established graduated discount rates which
have been approved by the Board. These rates were subsequently
discontinued by the Atlanta bank.
Section 5182 of the Revised Statutes was amended by an act approved January 13, 1920, so as to authorize the issue of national bank
notes attested by the written or engraved signatures of the president or vice president and the cashier of the national bank issuing
such notes, and to provide that such signatures may be attached
either before or after the receipt of such notes by the association.
In view of the fact that under section 18 of the Federal Reserve Act,
Federal Reserve Banks are authorized to issue Federal Reserve Bank
notes under the same terms and conditions that national banks may
issue notes, this amendment relates to the Federal Reserve Banks
as well as to national banks. Much inconvenience and expense incident to the issue of bank notes will be avoided by reason of the
provision in this amendment permitting the signatures of the officers
signing such notes to be engraved on the notes before they are delivered to the issuing bank.
Section 210 (d) of the Transportation Act of 1920, approved February 28, 1920, provides in part that the Interstate Commerce Commission or the Secretary of the Treasury may call upon the Federal Reserve Board for advice and assistance with respect to any loan or
98
ANNUAL REPORT FEDERAL RESERVE BOARD.
application for any loan made by the United States to any railroad
under the authority of section 210 of the act. As mentioned on
pages 166 and 167 of the annual report of the Secretary of the
Treasury for the fiscal year 1920, the Federal Reserve Board has
been called upon by the Secretary of the Treasury for such advice
and assistance, and for this purpose created a committee known as
the Railway Loan Advisory Committee to the Federal Reserve Board.
This committee has been, since its organization on April 1, 1920,
actively engaged in assisting the Secretary of the Treasury in the
performance of the duties imposed upon him by the Transportation
Act of 1920.
By the act approved May 26, 1920, the so-called Kern amendment
to section 8 of the Clayton Anti-trust Act, relating to interlocking
directorates, was amended so as to authorize the Federal Reserve
Board to grant permits to private bankers to serve not more than
two banks, banking associations, or trust companies organized under
the laws of the United States or any State of the United States when
those banks are not in substantial competition with the applying
banker or with each other. Prior to this amendment the Board had
no authority, under the terms of the Kern amendment, to grant permits to private bankers to serve banks when they were prohibited
from serving such banks by the terms of the Clayton Act, although
the Board did have such power with respect to directors, officers, and
employees of member banks.
The appropriation act approved May 29, 1920, in certain sections
thereof, provides for the discontinuance of the subtreasuries of the
United States from and after July 1, 1921, or at such earlier date oi
dates as the Secretary of the Treasury may deem advisable, and authorizes the Secretary of the Treasury in his discretion to transfer
any and all of the duties and functions of the assistant treasurers or
the subtreasuries to the Treasurer of the United States, or the mints
or assay offices, or to utilize any of the Federal Reserve Banks acting
as depositaries or fiscal agents of the United States for the purpose
of performing any or all of these duties and functions. The Secretary of the Treasury is further authorized to assign any and all of
the rooms, vaults, equipment and safes or space in the buildings used
by the subtreasuries to any Federal Reserve Bank acting as fiscal
agent of the United States. As stated on page 73, the subtreasuries
at Boston, Chicago, New York, and San Francisco have already been
discontinued and their functions taken over by the Federal Reserve
Bank located in the respective city, and it is planned to close the
remaining subtreasuries and transfer their functions to the Federal
Reserve Banks as rapidly as possible.
ANNUAL REPORT FEDERAL RESERVE BOARD.
99
The Board has no further amendments to suggest to Congress at
this time. It desires, however, to express its opposition to any legislation which would impair the ability of the Federal Reserve Banks
to exercise the proper control over their credit transactions as well as
to legislation tending to remove the wise limitations now imposed by
the Federal Reserve Act upon the character of paper eligible for discount. The Board would point out that the power of the Federal
Reserve System to expand credits in amounts sufficient to meet great
emergencies has been demonstrated repeatedly during the past five
years, and it is not believed that any greater latitude is necessary or
desirable.
LAW DIVISION.
There has been no substantial change during the past year in the
work of the Law Division, and a reference to pages 56-58 of the last
annual report of the Board will show the general character of that
work and the scope of the duties of the Law Division. It is not
necessary to add anything to what was said in that report as to the
work of the Law Division under, the subheadings State laws, Membership of State banks and trust companies, Clayton Antitrust Act,
and Opinions and rulings, except to state that during the past year
the Board has approved, after examination and report by the Law Division, 360 applications made by State banking institutions for membership, and has received and considered, after similar examination
and report, 259 applications filed with it under the provisions of the
so-called Kern amendment to section 8 of the Clayton Antitrust
Act relating to interlocking bank directorates. Certain special features of the work of the Law Division during the past year are, however, of sufficient importance to be mentioned in this report.
Regulations,—The Board's regulations which have been issued
from time to time in the past were recently added to, revised, and
reissued in a new series, series of 1920. A revision of the earlier
regulations was necessary in order to bring the regulations up to
date and to incorporate in them the amendments to the law and rulings of the Board made since the last series of the regulations,
series of 1917, was issued. New regulations were added covering the
organization and operation of corporations under the provisions of
section 25 (a) of the Federal Reserve Act, which section was added
by the amendment approved December 24, 1919, and is commonly
known as the Edge Act, and covering interlocking bank directorates
under the Clayton Act as amended. In connection with the preparation of the new series, the Law Division has been called upon to draft
the new regulations and to revise the earlier ones and to render advice and assistance covering the legal aspects of the matters involved.
100
ANNUAL REPORT FEDERAL RESERVE BOARD.
Trust powers of "national baniks.—During the past year 272 national banks have been granted permits under the terms of section
11 (k) of the Federal Reserve Act, of which 247 were original
applications and 25 were supplementary applications. Recently
the legal effect of this section as amended has been clarified and the
Board's interpretation thereof confirmed by a number of decisions
rendered by the courts of various States. It will be recalled that the
Supreme Court df the United States, in an opinion 1 rendered June 11,
1917, upheld the constitutionality of section 11 (k) as originally
enacted. By the act of September 26, 1918, the section was amended
so as to permit national banks to compete for trust business with
State banks and trust companies upon more equal terms. Since that
amendment the State courts of New York,2 Connecticut,3 and Wisconsin 4 have rendered decisions substantially to the effect that it is
now beyond the constitutional power of a State to withhold from
national banks located within its borders the authority to exercise
trust powers when competing State institutions are permitted to
exercise those powers, irrespective of whether the discrimination
attempted to be made by the State against the national banks takes
the form of an express statutory prohibition or is to be implied
from the mere absence of permissive legislation. The opinions in
these cases have all been published in the Bulletin.
Edge Act.—Throughout the year the Law Division has been called
upon frequently to prepare opinions with reference to the interpretation of sections 25 and 25 (a) of the Federal Reserve Act, which
sections deal with foreign financial corporations and the rights of
national banks to invest in the stock thereof, and to advise as to the
requirements of the law in connection with the organization of corporations under the terms of section 25 (a), the so-called Edge Act.
Recently the Board has received numerous applications by national
banks for permission to invest in the stock of the two international
financial corporations wThich have been in process of organization
under that1 act, and these applications have all been referred to the
Law Division before being acted upon by the Board.
Summary of amendments.—The Law Division during the year
compiled a summary of the various acts amending the Federal
Reserve Act, including those laws which specifically amend the text
of that act and those which amend it in substance without effecting
a change of text.
1
First National Bank of Bay City v. Fellows, Attorney General, and others, 244 U. S.,
416.
2
In the matter of Mollineaux, 179 New York Supplement, 90.
8
In re Hamilton, 110 Atl., 54.
* In re Stanchfield, 178 N. W., 310.
ANNUAL REPORT FEDERAL, RESERVE BOARD.
101
FEDERAL ADVISORY COUNCIL.
The Federal Advisory Council held its four statutory meetings
in Washington during 1920 on the following dates: February 17,
May 17, September 20, and November 15. No other meetings of the
council were held during the year.
CONFERENCES HELD BY THE BOARD.
The Federal Keserve Board conferred with the Federal Advisory
Council on the occasion of each of its meetings, and while the
council was in session in Washington on May 18 a joint conference was held with members of the council and the Class A directors of the Federal Eeserve Banks for the purpose of discussing the
credit situation as it then existed.
On April 7 the Board held a conference with the governors of
the Federal Eeserve Banks, and on October 15 a joint conference
was held with the Federal Reserve agents and the governors of
the Federal Reserve Banks. At these conferences matters relating
to the operations of the Federal Reserve System were discussed.
BOARD'S ORGANIZATION, STAFF, AND EXPENDITURES.
There have been numerous changes in the Board's organization and
staff during the past year.
On February 2, Hon. David F. Houston, previously Secretary of
Agriculture, took the oath of office as Secretary of the Treasury,
succeeding Hon. Carter Glass, and thereby became ex-officio member
and chairman of the Federal Reserve Board.
The resignation of Albert Strauss, vice governor of the Board,
was accepted by the President March 15. Mr. Strauss had been a
member of the Board since September 18, 1919, and vice governor of
the Board throughout his period of office. Mr. Strauss resigned to
reenter private business.
Hon. Edmund Platt, chairman of the House Banking and Currency Committee, was appointed by the President to fill the unexpired term of Mr. Strauss, and took office on June 8. At the time
of his nomination Mr. Platt was a Member of Congress, having
represented the twenty-sixth New York district since 1913. Throughout the term of his service in Congress Mr. Platt was a member of
the Committee on Banking and Currency, and served as chairman
from March 4, 1919, to the date of his resignation.
In May, Edward L. Smead was appointed chief of the Board's
Division of Reports and Statistics, succeeding M. Jacobson, who
previously held the dual title of statistician and chief, Division of
Reports and Statistics. Mr. Smead was appointed to the Board's
staff on April 19, 1915.
102
ANNUAL REPORT FEDERAL RESERVE BOARD.
On June 30 George L. Harrison, general counsel of the Board,
resigned to become deputy governor of the Federal Reserve Bank of
New York, and Walter S. Logan, assistant counsel, was appointed
general counsel.
The President, on July 23, redesignated W. P. G. Harding as
Governor of the Federal Reserve Board for the period ending
August 10, 1922, and Edmund Platt was designated as vice governor
of the Board for the period July 23, 1920, to August 10, 1922.
The term of office of Henry A. Moehlenpah, who was appointed on
September 5 and took office on November 10, 1919, to fill the unexpired term of Frederic A. Delano, expired August 9, 1920. The
President, on September 29, during a recess of the Senate, appointed
David C. Wills, since 1914 chairman of the board of directors and
Federal reserve agent of the Federal Reserve Bank of Cleveland, a
member of the Board to serve until the end of the next session of
the Senate.
William W. Paddock, chief of Division of Examination, resigned
on September 30 to become deputy governor of the Federal Reserve
Bank of Boston, and effective October 6 James F. Herson, chief
Federal reserve examiner, was appointed chief of the Division of
Examination in addition to his other duties.
On October 16 Robert G. Emerson, assistant secretary, was appointed assistant to the governor, and Walter L. Eddy was appointed
assistant secretary,
William W. Hoxton, executive secretary, was appointed secretary
of the Board November 1, upon the resignation of Webb T. Chapman, who had been secretary of the Board since September 1, 1919,
and who had been connected with the Board since its organization
in 1914.
The total cost of conducting the work of the Board during the
year 1920, including salaries of members and expense of printing
and circulating the Federal Reserve Bulletin, was $712,043.63.
Two assessments were levied against the Federal Reserve Banks during the year, aggregating $700,766.52, or approximately 296 thousandths of 1 per cent of their average paid-in capital and surplus
for the year.
Further details relative to the operation of the Federal Reserve
Board and the annual reports of Federal reserve agents appear as
exhibits in the Appendix.
By direction of the Federal Reserve Board :
W. P. G. HARDING,
Governor.
The SPEAKER OF THE HOUSE OF REPRESENTATIVES.
EXHIBITS.
45525 °—21
8
103
DISCOUNT RATES.
N o . 1.—Discount rates (high and low for each year) in force since organization of Federal Reserve Banks.
Character of paper and maturities.
Low.
Commodity
paper
within
90
days. 1
d
P
o
High.
Low.
High.
High.
Low.
Low.
High.
Low.
Trade
accept- Trade Bankers'
ances accept- acceptwithin ances
ances
60 days 61 to 90 within 3
(see
days.
months.
Within 16 to 90 note 1).
15
days.
days.
High.
Low.
High.
Low.
Low.
High.
Low.
High.
High.
1 Low.
Low.
High.
Low.
High.
High.
Federal Reserve Bank.
Paper secured
by United
States Government war
obligations.
High.
Agricultural
and
livestock
paper
Within 11 to 30 Within 16 to 30 31 to 60 61 to 90 over
10
15
90
days.
days.
days.
days.
days.
days.
days.
Commercial paper, n. e. s.
1
34
4
4
34
34
4
W
i
. .
CO
6
4
44
7
51
CO
4
4
4
44
44
4
6
4
44
4
44
44
7
4|
44
44
44
5
5
5
5
5
5
4
6
4
41
41
41
44
7
44
4
4
4
6
4
44
4
4
4
41
41
44
4|
44
44
4
4
6
4
44
31
4
44
6
34
4
44
6
31
34
4
44
44
7
31 34
3 34
31 4
4 41
41 44
44 7
34
3
34
4
34
31
3 4 31 4
31 41 4 44
4 44 41 44
44 6 44 7
31 34
31 34
31 4
4 44
44 44
44 7
31
34
34
4
44
44
31
31
4
41
4
41
44
6
31
4
4
41
3
31
3
3
44
44
3 3
31 3
i
5
5
W
O
41
44
6
4
4
44
CO
CO
44
6
5
5
5
5
7
44
7
6
4
5
5
5
5
5
5
4
4
4
CO
CO
4
4
41
6
5
5
5
5
7
6
4
5
5
7
4
4
44
4
5
5
4|
7
31 3
4 31
4f 4
54
44
31
. .
51
3
4
4
4
44
6
4
5
5
4
4
4
CO
6
31
CO
Boston:
1914-152.
1916
1917
1918 .
1919
1920
New York:
1914-15 2
1916
1917 .
1918 ..
1919
1920
PJiiladelphia:
1914-15 2
1916
3
3
. .
34 44 4
4
6
44
4f
5
4f
6
44
44
5
5
4|
6
4
4
44 4
41 6
6
41
34
4
3
34
4
4
6
41
6
34
44
41
41
4
44
4
3
41 4 44 4
41 41 44 44
4
41
41
6
41
34
4
4
44
6
44
34
34
4
34
44
6
34
4
34
4
4
44 44 44
44
44
34
4
44
44
4
5
4
34
34
4
44
44
6
5
CO
H|M
6
34
6
4
4f
7
41
4|
4|
7
44 41 44
4! 4| 4f
41 7 41
34
44
4
4
4|
4|
44
4
4f
4 6 44
44 4 44 44
44 4 5 44
4! 44 5 41
4f 41 4f 41
4|
7
4|
7
5
! 5
34
4
41
6
34
34
4
44
4
34
41 4
41 4
6
44
4
34
34
4
44
44
7
34
34
34
4
44
44
34
34
34
4
44
44
CO
64 44
6
5
6
5
CO
34 44
4f
4
64 4
4 4
44 4
top
41
4
4
4
CO
4
64
4
4
44
44 41
41
4f 7
top
4
4
top
6
4
top
4
4
top
6
4
top
>Hu
6
34
34
34
6
4
34 34
34 3
43
4f
1
3*
CO
6
4
41 41 44
4
34
CO
4
4
4
44
44
44
44
41
41
4
44
41
CO
6
4
6
34
34
4
CO
4
4|
41 6
44
CO
4
4
6
4
4
top
6
44
44
44 41
4f 4f
34
41
41
6
Mp
44
4|
6
4
CO
4|
4
4
4
4
3
34
4
top
4!
6
34 44
4f
4
41 4f
44
44
41
41
34
4
IHD
4f
4
44 4
4| 44 4! 44
4f 41 41 41
6 4| 6 41
top
44
6
4
6
4
4
4
4
. . . .
fi 4
4 4
4
4f
44
4|
4|
6
top
. . .
4
fcsp
6 34 6
34 34 4
3
top
4
4
4f
6
top
....
HM
CO
1917
1918
1919 ..
1920
Cleveland:
1914-15 2
1916 . . . .
1917
1918
1919
1920
Richmond:
1914-15 2
1916 ..
1917
1918 .
1919
1920
Atlanta:
1914-15 2
1916
1917
1918...
1919
1920
Chicago:
1914-15 2.
1916
1917 .
1918 ..
1919
1920
3
3
3
6
4
4
4
4
4|
7
41
34
34 3
4
34
41
6
4
41
41
34
4
4
44
6
44
34
44
44
34
34
34
34
4
34
34
44
4
44
44
44
7
44
44
1 Commodity rates were established during September and October, 1915, and merged with those for commercial paper of corresponding maturities in November and December,
1917.
2 Nov. 16,1914, to Dec. 31,1915.
O
H o , 1.—Discount rates (high and low for each year) in force since organization of Federal Reserve
Banks—Continued.
Character of paper and maturities.
6
4
4
4
6
4
4
4
CO
CO
HM
6
6
41
4
4
4
41
4f
4f
4
4
41
7
4f
4|
7
61
•
•
4
4
61
41
5
5
5
7
4
4
41 41 41 41
41
41
41
5
5
5
41
4
4
41
41
61
61
5
51
51
51
7
5
5
5 31 3 4
51 4 31
51 4f 1 35
51 6 41 6
61 5
5 5
5 5
31 3
4
31
31 31
4
41
41 41
41 61
31
31
31
41
41
31
4
41
41
61
31
4
41
41 6
31 31 31 31
4 31 4 31
31 4 4 4 4
Commodity
paper
within
90
days. 1
Low.
Low.
31
31
31
4
41
41 51 5
Low.
High.
31
31
4
41
41
6
High.
Low.
31
3
3
4
41
Low.
High.
31
31
31 31 4 31 4
4 31
4 41
4f 4 4f 4 41
51 41 51 41 6
Low.
5
41
41
51
51
51
4
4
4
High.
6
5
51
41 51
51
4| 6
Low.
High.
Low.
4
4
41
4|
7
41
4
4
41 4
61
High.
6
Low.
.
Trade
accept- Trade Bankers'
ances accept- acceptances
within ances
60 days 61 to 90 within 3
days. months.
(see
Within 16 to 90 note
1).
15
days.
days.
High.
.
HM
.
Low.
6
4
4f
.
High.
4
4
4 6
4 4
31 41 4 41 4 41
4 4f 41 4 | 41
4 4* 4f 4! 4 | 41
6 4f 6 4f 6
High.
4
4
Low.
Low.
6
4
High.
Low.
CO
6
3
..
.
CO
St. Louis:
1914-152
1916
1917
1918
1919
1920
Minneapolis:
1914-15 2
1916
1917
1918
1919
1920
Kansas City:
1914 15 2
1916
1917
High.
High.
Federal Reserve Bank.
Paper secured
b y United
States Government war
obligations.
High.
Agricultural
and
livestock
paper
Within 11 to 30 Within 16 to 30 31 to 60 61 to 90 over
10
15
90
days.
days.
days.
days.
days.
days.
days.
Commercial paper, n. e. s.
3
31
31
3
3
31
3
31
41
3
3
31
3
4
4
3
3
4
5
..
41
5
6
...
6
4
4
4
6
4
6
31
4
.
.
51
5
6
31
4
41
5.
41
4f
5
6
HM HN
CO CO
CO CO
.
4
41
5
41
5
5
51
5
6
41
5
5
51
5
6
41
5
5
51
51
6
•5
4
41
4f
5
61
4
41
4f
5
6
4
4
4
41
4f
5
61
4
4*
5
5
6
4
4
4
41
5
5
61
41
5
51
51
6
41
41
41
5
51
51
61
4
31 41
41 5
4| 5
6
4
4
31
41
4|
61
41
41
5
5
6
41
41
41
41
4f
4f
61 6
4
4
4
41
5
6
CO CO
1918
1919
1920
Dallas:
1914-15 2
1916
1917
1918
1919
1920
San Francisco:
1914-15 2
1916
1917
1918
1919
1920
4f
6
41
5
5
4! 6
31
4
6
51
51
51
6
51
51
51
51
51
51
54
5
6
31
4
41
41
5
6
4
4
41
5
6
31
31
31
4
5
6
31
41
6
34
31
4
41
31
31
41
41
4
41
5
6
3J
4
41
41
41
5
6
4
31
41 4
4| 41
6
41
3
3
4
4|.
5
6
4
41
5
5
6
4
4f
5
31
31
34
31
41
5
4
4
4
44
5
6
4
31
31
4
41
5
31
31
4
4!
5
4| 6
34
34
3
4
4f
41
3
3
3
4
54 5
3
3
34
3
3
3
54 5
:?
XJi
6
5
1
Commodity rates were established during September and October, 1915, and merged with those for commercial paper of corresponding maturities in November and December, 1917.
23 Nov. 16,1914, to Dec. 31, 1915.
4 Maximum rate during 1919 for maturities 16 to 60 days, 4f per cent.
5 Commodity paper rates for bills maturing within 30 days, 31 per cent; 31 to 60 days, 4 per cent; 61 to 90 days, 4% per cent.
Oct. 20, 1917, rate of 3£ 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 commercial paper 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, at 1 per cent higher than on commercial paper of corresponding maturities, were automatically discontinued effective Apr. 1,1920, coincident with the maturity of all outstanding War Finance Corporation bonds.
a
o
d
FEDERAL RESERVE NOTES.
O
00
No. 2.—Federal Reserve notes outstanding, held by each bank, and in actual circulation, also gold and eligible paper pledged as collateral for outstanding
notes.
MONTHLY FIGURES FOR 1920.
[In thousands of dollars.]
Total.
Federal Reserve notes:
Outstanding i —
Jan. 30
Feb. 27
Mar. 26
Apr.30
May 28
June 25
July 30
Aug. 27
Sept. 24
Oct. 29
Nov. 26
Dec. 30
Held by b a n k Jan. 30
Feb. 27
Mar.26
Apr.30
May28
June 25
July 30
Boston. New York. Philadelphia.
Cleveland.
Richmond.
Atlanta. Chicago. St. Louis. Minneapolis.
Kansas
City.
Dallas.
San Francisco.
3,130,783
3,254,806
3,289,312
3,326,186
3,359,493
3,396,168
3,425,788
3,471,731
3,586,497
3,666,170
3,653,281
3,738,880
246,496
265,445
275,494
275,059
281,140
288,796
295,953
305,679
314,210
312,492
303,243
305,503
898,612
920,264
934,878
943,954
963,366
980,049
981,658
972,767
975,636
986,339
996,447
1,030,354
232,709
256,018
255,000
250,831
257,911
260,479
265,305
277,707
287,329
284,386
284,598
293,624
268,746
295,692
306,967
320,470
323,186
328,508
331,711
349,866
365,045
370,252
371,065
379,751
135,555
134,335
131,677
130,503
124,700
126,717
131,481
137,773
145,847
151,479
151,585
161,252
146,338
151,476
150,133
152,646
149,413
144,589
143,037
146,693
150,914
183,492
177,209
179,946
512,616
543,157
547,135
566,730
579,961
583,923
592,052
593,521
619,886
632,736
632,175
634,429
153,298
155,071
154,188
149,423
146,447
144,320
144,923
145,481
151,631
156,370
155,382
155,722
83,511
83,387
83,245
82,518
81,115
79,410
78,095
77,013
82,912
84,377
83,756
81,836
106,247
108,094
107,693
104,333
102,736
103,582
105,409
109,295
113,244
117,457
113,777
118,605
75,691
80,377
81,261
83,485
86,048
85,910
82,729
82,826
92,764
95,369
89,261
84,714
270,964
261,490
2C1, 641
260,234
203,470
269,885
273,435
273,110
287,079
291,421
294,783
313,144
279,839
234,822
241,273
251,631
252,472
279,450
305, 650
11,505
5,743
13,797
8,491
7,196
8,179
11,111
129,442
93,977
100,690
105,354
108,539
120,817
132,0S9
9,907
13,478
10,421
11,388
8,820
11,694
10,860
12,190
11,857
10,923
14,595
12,222
12,719
16,185
4,778
4,800
5,335
5,859
3,948
4,608
6,267
4,248
5,698
4,354
5,180
4,333
3,997
3,760
31,507
34,232
27,070
39,097
44,731
52,474
58,463
19,089
16,293
18,184
18,336
17,363
18,031
18,406
1,876
1,600
1,339
1,564
1,932
1,682
1,721
6,682
5,880
6,080
5,483
5,164
5,960
6,522
4,014
3,288
3,894
3,579
4,040
3,559
3,537
44,601
37,976
39,1S6
32,705
34,184
35,730
36,749
i Net amount received by Federal Reserve Bank from Federal Reserve Agent.
t
w
o
Aug. 27
Sept. 24
Oct. 29
Nov. 26
Dec. 30
In actual circulationJan. 30
Feb. 27
Mar. 26
Apr. 30
May 28
June 25
July 30
Aug. 27
Sept. 24
T
Oct. 29
Nov.26
Dec. 30
Collateral pledged as security for outstanding Federal Reserve notes:
Gold and gold certificates—
Jan. 30
Feb. 27
Mar.26
Apr. 30
May 28
June 25
July 30
Aug. 27
Sept. 24
Oct. 29
Nov.26
Dec. 30
268,094
306,501
314,867
327, 743
394,194
9,548
15,961
16,324
13,127
14,307
117,842
119,935
109,633
120,126
165,838
9,679
14,982
11,120
11,404
12,664
14,982
14,398
18,129
18,192
29,026
3,804
5,702
5,363
5,093
6,090
4,267
3,911
5,758
4,811
4,780
49,592
64,698
78,550
87,416
86,238
17,165
18,348
18,472
19,215
19,112
1,112
1,244
1,663
1,619
1,769
5,515
5,623
5,882
5,441
6,731
3,411
3,982
4,298
4,797
5,240
31,177
37,717
39,675
. 36,502
42,399
2,850,944
3,019,984
3,048,039
3,074,555
3,107,021
3,116,718
3,120,138
3,203,637
3,279,996
3,351,303
3,325,538
3,344,686
234,991
259,702
261,697
266,568
273,944
280,617
284,842
296,131
298,249
296,168
290,116
291,196
769,170
826,287
834,188
838,600
854,827
859,232
849,589
854,925
855,701
876,706
876,321
864,516
222,802
242,540
244,579
245,443
249,091
248,785
254,445
268,028
272,347
273,266
273,194
280,960
256,556
283,835
296,044
305,875
310,964
315,789
315,526
334,884
350,647
352,123
352, 873
350,725
130,777
129,535
126,342
124,644
120,752
122,109
125,214
133,969
140,145
146,116
146,492
155,162
142,090
145,778
145,779
147,466
145,080
140,592
139,277
142,426
147,003
177,734
172,398
175,166
481,109
508,925
520,065
527,633
535,230
531,449
533,589
543,929
555,188
554,186
544,759
548,191
134,209
138,778
136,004
131,087
129,084
126,289
126,517
128,316
133,283
137,898
136,167
136,610
81,635
81,787
81,906
80,954
79,183
77,728
76,374
75,901
81,668
82,714
82,137
80,067
99,565
102,214
101,613
98,850
97,572
97, 622
98,887
103,780
107,621
111, 575
108,336
111,874
71,677
77,089
77,367
79,906
82,008
82,351
79,192
79,415
88,782
91,071
84,464
79,474
226,363
223,514
222,455
227,529
229,286
234,155
236,686
241,933
249,362
251,746
258,281
270,745
1,119,426
1,145,479
1,186,829
1,137,928
1,112,040
1,150,175
1,153,712
1,154,684
1,211,619
1,175,118
1,197,681
1,276,214
72,129
89,259
100,107
119,072
118,453
116,509
136,866
128,392
156,823
130,705
123,356
135,357
281,778
308,402
312,568
317,217
285,599
283,547
279,139
275,950
267,490
262,733
249,032
254,575
81,721
86,210
87,592
87,503
87,384
86,652
105,697
116,899
124,322
116,778
122,191
132,916
122,298
124,045
132,459
142,813
146,898
149,321
151,473
150,744
141,583
142,065
161,358
177,694
39,204
32,135
39,067
40,914
36,960
40,797
37,561
42,768
45,972
41,604
46,980
53,917
59,938
54,541
54,839
54,521
50,934
49,034
47,218
48,109
52,624
64,668
61,184
60,836
217,271
204,693
197,160
160,315
169,826
174,208
157,137
166,067
190,791
176,381
188,100
198,554
57,703
52,617
47,594
44,399
44,583
45,416
44,719
45,537
47,307
48,816
48,068
49,668
33,755
33, 581
33, 939
33,487
32,834
32,329
31,309
31,057
27,671
26, 851
26,290
25,905
39,430
38,017
37,106
34,646
34,190
36,265
35,202
38,078
39,817
41,320
39,921
41,248
32,369
32,182
35,991
27,541
26,403
25,186
27,160
25,997
30,584
28,560
22,982
26,484
81,830
89,797
108,407
75,500
77, 976
110, 911
100, 231
85, 086
86,635
94,637
108,219
119,060
O
%
o
CO
Ho. 2.—Federal Reserve notes outstanding, held by each bank, andin actual circulation, also gold and eligible paper pledged as collateral for outstanding
notes—Continued.
MONTHLY FIGURES FOR 1920—Continued.
[In thousands of dollars.]
Total.
Collateral pledged as security for outstanding Federal Reserve notes—Con.
Eligible paperJan. 30
Feb. 27
Mar.26
Apr.30
May28
June 25
July 30
Aug. 27
Sept. 24
Oct. 29
Nov. 26
Bee. 30
Boston.
New York.
Philadelphia.
Cleveland.
Richmond.
Atlanta.
Chicago. St. Louis. Minneapolis.
Kansas
City.
Dallas.
[San Francisco.
d
$>
2,647,947
2,930,572
2,837, 877
212,529
196,503
213,654
2,856, 705
2,865,104
2,788,397
2,777,081
2,893,442
2,932,892
185,668
204,576
179,399
3,000,646
2,889,634
2,893,005
178,482
205,662
214,111
223,102
195,221
198,075
951,245
1,082,151
1,010, 206
1,014,607
981,794
968, 861
962,514
988, 671
916,037
992,700
942,464
983,486
155,901
193,620
188, 671
176,719
184,213
175,059
161,189
165,319
182,213
173,166
170,083
168,369
210,819
242,582
240,252
228,303
223,725
225,563
208,023
258,073
269,189
252,870
233,970
224,550
101,972
111,999
106,883
100,619
105,945
104,064
108,845
106,077
117,130
116,270
115,830
117,175
108,953
119,230
107,317
121,533
122,202
118,673
117, 655
121,068
124,369
142,894
139,416
135,373
385,610
442,176
466, 833
479,036
482,837
481,513
484,125
479,553
512,459
508,005
506,506
501,419
104,222
116, 519
118, 832
113, 683
113,540
110,311
110, 228
114,519
117, 961
121,883
121, 287
115,206
60,075
60,356
58,873
64,284
67,154
68,367
72,614
64,609
69,003
69,856
64,438
69,233
95,847
105,375
107,193
111, 086
63,548
73,598
113,253
112,218
112, 212
113, 603
75,046
73,880
72,733
74,203
110,041
117, 816
115,445
112,931
77,161
78,708
77,355
69,132
57,134
75,520
197,226
186,463
162,029
185,647
190, 819
170,489
188,461
202,085
223,218
203,376
207, 619
198,056
o
3
W
o
No. 3.—Collateral {gold and eligible paper) pledged with Federal Reserve Agents as security for Federal Reserve notes outstanding and gold available as
reserve against notes in circulation.
WEEKLY FIGURES FOR 1920.
[In thousands of dollars.]
Federal Reserve notes in circulation.
Federal Reserve notes outstanding.
Collateral pledged as security.
Gold and gold certificates.
Federal
Reserve
notes held
by issuing
bank.
Eligible paper.
Date.
Amount.
Total.
Total.
In
vault.
In redemption
fundUnited
States
Treasury.
In settlement
fundFederal
Reserve
Board.
Total.
244,148
248,148
242,148
246,148
240,148
240,148
244,148
241,148
246,148
255,151
250,151
251,051
254,621
101,120
105,786
96,105
91,979
93,167
102,742
97,579
102,890
97,804
97,788
99,672
98,662
104,227
860,328
855,574
798,073
788,134
786, 111
773,537
780,030
806,760
801,527
785,751
792,753
811,982
827,981
2,730,662
2,590,549
2,614,659
2,667,810
2,647,947
2,690,261
2,761,176
2,834,158
2,930,572
2,860,454
2,873,394
2,611,443
2,837,877
Amount
required.
Amount.
Excess
amount
pledged.
Gold available as reserve against notes
after setting aside
a reserve of 35 per
cent against net
deposits.
Amount.
Per
cent.
I
9
1920.
Jan.
2
9
16
23
30
Feb. 6
13
20
27
Mar. 5
12
19
3,291,342
3,244,314
3,177,290
3,146,156
3,130,783
3,139,652
3,187,974
3,221,789
3,254,806
3,270,721
3,281,343
3,292,819
3,289,312
3,936,258
3,800,057
3,750,985
3,794,071
3,767,373
3,806,688
3,882,933
3,984,956
4,076,051
3,999,144
4,015,970
3,773,138
4,024,706
1,205,596
1,209,508
1,136,326
1,126,261
1,119,426
1,116,427
1,121,757
1,150,798
1,145,479
1,138,690
1,142,576
1,161,695
1,186,829
2,085,746
2,034,806
2,040,964
2,019,895
2,011,357
2,023,225
2,066,217
2,070,991
2,109,327
2,132,031
2,138,767
2,131,124
2,102,483
644,916
555,743
573,695
647, 915
636,590
667,036
694,959
763,167
821,245
728,423
734,627
480,319
735,394
292,350
329, 946
327,411
301, 929
279,839
247,877
228,887
244,665
234,822
240,711
241,593
245,686
241,273
2,998,992
2,914,368
2.849, 879
2,844,227
2.850, 944
2,891, 775
2,959,087
2,977,124
3,019,984
3,030,010
3,039,750
3,047,133
3,048,039
1,473,376
1,501,537
1,467,610
1,451,651
1,441, 659
1,436,723
1,426,977
1,410,411
1,423,613
1,427,292
1,427,391
1,469,515
1,436,639
49.1
51.5
51.5
51.0
50.6
49.7
48.2
47.4
47.1
47.1
47.0
48.2
47.1
3
s
No. 3.—Collateral (gold and eligible paper) pledged with Federal Reserve Agents as security for Federal Reserve notes outstanding and gold available as
reserve against notes in circulation—Continued.
fcO
WEEKLY FIGURES FOR 1920—Continued.
[In thousands of dollars.]
Federal Reserve notes in circulation.
Federal Reserve notes outstanding.
Collateral pledged as security.
Federal
Reserve
notes held
by issuing
banks.
Eligible paper.
Gold and gold certificates.
Date.
Amount.
Total.
Total.
In
vault.
In redemption
fundUnited
States
Treasury.
In settlement
fundFederal
Reserve
Board.
Total.
97,766
112,194
110,884
102,190
97,417
92,979
97,369
107,846
106,675
108, 698
108, 897
113, 987
113.081
816,470
806,400
806,398
794,537
785,479
770,640
760,740
733,175
747,013
743,614
736,302
786,570
777,868
2,748,071
2,715,965
2,748,776
2, 815,094
2,856, 705
2,854,072
2,896, 865
2,861,121
2,865,104
2,908,673
2,862, 936
2,640,852
2.788,397
Amount
required.
Amount.
Excess
amount
pledged.
Gold available as reserve against notes
after setting aside
a reserve of 35 per
cent against net
deposits.
Amount.
En
O
Per
cent.
1920.
Apr.
2.
9.
1G.
23.
30.
May 7.
14.
21.
28.
June 4 .
11.
18.
3,307,064
3,327,614
3,326,948
3,335,140
3,326,186
3,340,477
3,344,705
3,354,194
3,359,493
3,377,189
3,376,028
3,375,826
3.396.168
3,917,208
3,889,090
3,919,089
3,965,752
3,994, 633
3,975,383
4,012,767
3,959,944
3,977,144
4,019,537
3,966,687
3,802,636
3.938.572
1,169,137
1,173,125
1,170,313
1,150,658
1,137, 928
1,121,311
1,115,902
1,098,823
1,112,040
1,110,864
1,103,751
1,161,784
1.150.175
254,901
254,531
253.031
253,931
255.032
257,692
257, 793
257,802
258,352
258,552
258,552
261,227
259.226
2,137,927
2,154,489
2,156,635
2,184,482
2,188,258
2,219,166
2,228,803
2,255,371
2,247,453
2,266,325
2,272,277
2,214,042
2,245,993
610,144
561,476
592,141
630,612
668,447
634, 906
668,062
605,750
617, 651
642,348
590,659
426,810
542,404
229,741
247,397
253,255
266,833
251,631
248,133
261,471
268,992
252,472
249, 898
' 263, 823
271,016
279,450
3,077,323
3,080,217
3,073,693
3,068,307
3,074,555
3,092,344
3,083, 234
3,085,202
3,107,021
3,127, 291
3,112, 205
3,104, 810
3,116,718
1,459,434
1,477,557
1,474, 295
1,462,813
1,436,309
1,455,082
1,434,619
1,455,005
1,464,442
1,466,429
1,479,894
1,534,739
1,505,827
47-4
48.0
48.0
47.7
46.7
47.1
46.5
47.2
47.1
46.9
47.6
49.4
48.3
I
July
2
9
16
23
30
Aug.
6
13
20
27
Sept. 3
10
17
24
Oct.
1
8
15
22
29
Nov. 5
12
19
26
Dec.
3.
10.
17
23
30.
3,419,457
3,454,488
3,450,964
3,434,186
3,425,788
3,438,500
3,450,969
3,462,875
3,471,731
3,501,897
3,549,041
3,581,625
3,586,497
3,603,149
3,625,726
3,642,707
3,663,725
3,666,170
3,659,448
3,660,033
3,657,488
3,653,281
3,664,949
3,677,562
3,682,755
3,755,246
3,738,880
4,031,234
4,000,694
3,918,568
3,897,225
3,930,793
3,968,829
3,970,513
4,024,752
4,048,126
4,094,622
4,046,711
3,970,603
4,144,511
4,101,512
4,169,552
4,165,650
4,174,146
4,175,764
4,200,892
4,151,952
4,065,647
4,087,315
4,124,046
4,109,167
4,016,391
4,145,500
4,169,219
1,146,944
1,145,102
1,152,875
1,160,215
1,153,712
1,150,343
1,164,562
1,164,264
1,154,684
1,132,219
1.147,239
1,237,942
1,211,619
1,180,393
1,142,412
1,169,038
1.203,240
1,175,118
1,152,346
1,177,689
1,205,746
1,197,681
1,194,204
1,210,563
1,269,725
1,253,492
1,276,214
259,226
259,226
259,226
259,226
259,226
259,226
260,226
260,226
260,226
274,225
274.225
279.226
279,226
279,225
279,276
280,276
279,776
277,776
277,776
276,776
276,756
276,256
267,726
267,426
266,426
266,426
264,926
110,637
116,285
111, 695
107,700
111,633
117,784
117,943
118,254
114,531
112,797
117,269
115,600
113,543
107,198
115,081
108,629
113,271
107,222
119,101
118,103
119,624
109,357
123,884
116,821
118,075
109,356
118,596
777,081
769,591
781,954
793,289
782, 853
773,333
786,393
785,784
779,927
745,197
755,745
843,116
818,850
793,970
748,055
780,133
810,193
790,120
755,469
782,810
809,366
812,068
802,594
826,316
885,224
877, 710
892,692
2,884,290
2,855,592
2,765,693
2,737,010
2,777,081
2,818,486
2,805,951
2,860,488
2,893,442
2,962,403
2,899,472
2,732,661
2,932,892
2,921,119
3,027,140
2,996,612
2,970,906
3,000,646
3,048,546
2,974,263
2,859,901
2,889,634
2,929,842
2,898,604
2,746,666
2,892,008
2,893,005
2,272,513
2,309,386
2,298,089
2,273,971
2,272,076
2,288,157
2,286,407
2,298,611
2,317,047
2,369,678
2,401,802
2,343,683
2,374,878
2,422,756
2,483,314
2,473,669
2,460,485
2,491,052
2,507,102
2,482,344
2,451,742
2,455,600
2,470,745
2,466,999
2,413,030
2,501,754
2,462,666
611,777
546,206
467, 604
463,039
505,005
530,329
519,544
561,877
576,395
592,725
497,670
388,978
558,014
498,363
543,826
522,943
510,421
509,594
541,444
491,919
408,159
434,034
459,097
431,005
333,636
390,254
430,339
250,643
273,540
315,071
315,981
305,650
296,639
281,788
288,150
268,094
258,627
253,856
291,944
306,501
298,459
303,603
289,436
307,526
314,867
305,268 I
331,048 j
350,053 |
327,743 I
352,910 |
365,720 j
338,423 j
350,315
394,194
3,168,814
3,180,948
3,135,893
3,118,205
3,120,138
3,141, 861
3,169,181
3,174,725
3,203,637
3.243,270
3,295,185
3,289,681
3,279,996
3,304,690
3,322,123
3.353,271
3,356,199
3,351,303
3,354,180
3,328,985
3,307,435
3,325,538
3,312,039
3,311,842
3,344,332
3,404,931
3,344,686
1,494,902
1,510,437
1,528,617
1,544,036
1,534,604
1,537,273
1,540,528
1,526,026
1,526,576
1,510,676
1,543,451
1,580,745
1,571,132
1,589,152
1,559,705
1,561,965
1,588,644
1,581,943
1,576,505
1,593,844
1,608,7G9
1,627,036
1,614,655
1,630,602
1,682,559
1,694,481
1,687,696
47.2
47.5
48.7
49.5
49.2
48.9
48.6
48.1
47.7
46.6
46.8
48.1
47.9
48.1
46.9
46.6
47.3
47.2
47.0
47.9
48.6
48.9
48.8
49.2
50.3
49.8
50.5
I
I
CO
No. 4.—Federal Reserve notes of each denomination printed, shipped to Federal Reserve Agents and United States subtreasuries since organization oj banks,
and on hand in Washington on Dec. SI, 1920.
[In thousands of dollars.]
PRINTED.
Federal Reserve Bank.
Fives.
Tens.
Twenties.
Fifties.
Hundreds.
Five
hundreds.
Thousands.
Five
thousands.
Ten
thousands.
Total.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
154,620
507,640
144,720
106,500
88,900
95,500
230,040
118,200
66,040
97,820
59,940
127,120
302,760
835,120
217,520
171,680
126,680
136,640
411,160
146,520
74,800
91,920
81,960
134,680
247,440
654,160
288.800
325,120
146,080
180,960
525,520
147,920
69,360
107,280
82,400
246,560
47,800
170,600
57,400
134,200
41,800
25,600
109,600
21,800
4,600
11,200
9,800
36,400
34,000
244,000
46,400
39,600
31,600
29,600
69,600
11,600
6,400
12,000
9,600
50,000
8,800
44,800
11,600
5,400
11,600
6,800
15,000
5,000
1,600
4,000
3,000
11,000
39,200
121,600
14,800
6,000
13,200
14,800
22,400
6,000
7,200
4,000
6,000
17,200
14,000
26,000
10,000
4,000
8,000
2,000
10,000
4,000
20,000
56,000
24,000
8,000
8,000
4,000
8,000
8,000
6,000
12,000
12,000
12,000
2,659,920
815,240
800,500
475,860
495,900
1,401,320
469,040
230,000
328,220
270,700
646,960
Total...
1,797,040
2,731,440
3,021,600
670,800
584,400
128,600
272,400
96,000
160,000
9,462,280
SHIPPED.
Boston
New Y o r k . . . .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
147,000
490,800
138,260
94,620
85,560
87,140
213,820
285,000
809,520
202,000
156,800
113,680
125,280
388,240
o
3
©
w
o
233,600
617,360
273,920
300,880
137,440
165,440
495,600
32,200
160,000
51,400
128,800
39,200
20,200
99,000
32,800
209,600
36,800
38,800
24,000
23,600
56,800
2,800
28,000
1,600
3,600
1,600
6,800
7,800
15,600
82,800
4,800
4,400
3,200
8,800
13,200
4,000
6,000
8,000
16,000
2,000
2,000
4,000
4,000
4,000 |
761,000
2,420,080
708,780
733, 900
410,680
437,260
1,278,460
St. Louis
Minneapolis..
Kansas City...
Dallas
San Francisco.
104,840
55,200
88,700
48,180
118,360
128,840
63,880
84,080
72,880
128,040
130,720
58,640
94,480
70,720
238,720
18,400
3,000
9,200
7,200
34,800
11,200
5,200
10,400
6,800
49,200
1,800
600
1,000
800
7,000
3,200
1,600
1,200
2,000
12,800
2,000
4,000
6,000
8,000
405,000
188,120
289,060
208,580
602,920
Total...
1,672,480
2,558,240
2,817,520
603,400
505,200
63,400
153,600
26,000
44,000
8,443,840
10,000
20,000
10,000
2,000
6,000
2,000
6,000
2,000
12,000
40,000
24,000
4,000
4,000
4,000
8,000
4,000
6,000
6,000
12,000
4,000
107,620
239,840
106,460
66,600
65,180
58,640
122,860
64,040
41,880
39,160
62,120
44,040
ON HAND.
Boston
New York
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
St. Louis
,
Minneapolis..
Kansas City...
Dallas
San Francisco.
7,620
16,840
6,460
11,880
3,340
8,360
16,220
13,360
10,840
9,120
11,760
8,760
17,760
25,600
15,520
14,880
13,000
11,360
22,920
17,680
10,920
7,840
9,080
6,640
13,840
36,800
14,880
24,240
8,640
15,520
29,920
17,200
10,720
12,800
11,680
7,840
15,600
10,600
6,000
5,400
2,600
5,400
10,600
3,400
1,600
2,000
2,600
1,600
1,200
34,400
9,600
800
7,600
6,000
12,800
400
1,200
1,600
2,800
800
6,000
16,800
10,000
1,800
10,000
7,200
3,200
1,000
3,000
2,200
4,000
23,600
38,800
10,000
1,600
10,000
6,000
9,200
2,800
5,600
2,800
4,000
4,400
Total...
124,560
173,200
204,080
67,400
79,200
65,200
118,800
70,000
116,000
1,018,440
RECAPITULATION.
Total minted
Total shipped
Total on hand
1,797,040
1,672,480
2,731,440
2,558,240
3,021,600
2,817,520
670,800
603,400
584,400
505,200
128,600
63,400
272,400
153,600
96,000
26,000
160,000
44,000
9,462,280
8,443,840
124,560
173,200
204,080
67,400
79,200
65,200
118,800
70,000
116,000
1,018,440
3
s
CO
"So.
5.—Federal Reserve notes of each denomination
Agents
issued by Federal Reserve Agents to Federal Reserve Banks,
since organization of banks, also amounts
and amounts retired by Federal Reserve
outstanding Dec. 31,1920.
[In thousands of dollars.]
ISSUED.
Federal Reserve Bank.
Fives.
Tens.
Twenties.
Fifties.
Hundreds.
Five
hundreds.
Thousands.
Five
thousands.
Ten
thousands.
Total.
d
Boston
New Y o r k . . .
Philadelphia.
201,008
604,198
276,860
300,760
189,740
227,795
462,801
140,672
Minneapolis..
Kansas City...
Dallas
San Francisco.
135,007
477,890
130,183
93,185
111,184
119,283
206,110
108,533
58,067
86,584
48,705
120,780
267,006
777,608
195,815
155,850
155,147
167,383
364,500
134,423
71,890
85,090
88,201
128,480
63,235
100,354
83,929
244,060
Total....
1,695,511
2,591,393
2,895,412
Cleveland
Kichmond
Atlanta
Chicago
St. Louis
27,602
28,
154,
45,
126,
52,
23,
78,
19,
2.
11,
9,
32,
197,614
29,550
35,450
34,222
30,047
40,400
12,400
4,500
8,570
11,590
48,700
584,221
480,645
4,
49,972
15,000
72,800
3,600
2,600
4,750
13,850
11,200
2,240
1,705
800
1,815
12,500
142,860
900
2,000
2,000
8,000
400
600
550
1,170
4,000
300
450
11,550
17,230
677,925
2,317,113
682,098
717,445
549,932
590,967
1,173,611
419,368
202,692
293,798
244,115
620,100
19,700
29,450
8,489,164
RETIRED.
Boston
New Y o r k . . . .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
92,690
332,350
87,445
56,861
81,417
88,541
125,436
161,461
489,306
128,449
90,832
114,292
125,088
186,220
S
3
i
W
O
5
87,459
300,419
151, 892
139,761
130,939
156,513
191,748
12,260
66,656
13,324
43,024
33,086
13,206
28,216
11,225
83,464
8,990
8,123
23,418
14,395
7,331
432
1,868
81
57
632
5,457
167
9,289
6,251
618
89
3,504
8,007
256
15
1,040
430
5
500
1,110
515
376,371
1,280,759
390,799
338,752
388,898
411,207
539,374
St. Louis
Minneap olis.
Kansas City
Dallas
San Francisco
Total
81,656
9,594
1,105
7,520
4,979
10,212
6,105
1,359
1,990
6,818
13,146
192
11
19
41
n,808
30,309
52,389
51,427
112,177
1,619,888
1,486,689
243,182
75,798
41,269
60,010
32,962
75,360
89,755
46,733
53,730
62,214
1,150,139
150
210
263,977
121,306
857
517
520
15
920
2,611
7,555
13,230
175,673
159,361
306,956
186,364
9,814
32,597
8,740
16,020
4,753,433
15,742
87,347
31,966
83,776
19,201
10,483
50,384
9,656
1,850
4,180
4,466
21,988
16,377
114,150
20,560
27,327
10,804
15,652
33,069
6,295
3,141
6,580
4,772
35,554
21,132
719
1,743
250
3,463
5,833
908
329
681
389
3,743
5,711
66,549
2,982
2,511
1,246
5,843
10,944
1,723
1,185
785
895
9,889
385
1,985
960
7,570
395
50
600
60
4,000
150
240
3,995
4,000
301,554
1,036,354
291,299
378,693
161,034
179,760
634,237
155,391
81,386
118,125
84,754
313,144
341,039
294,281
40,158
110,263
10,960
13,430
3,735,731
OUTSTANDING.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City....
Dallas
San Francisco..
Total
105,545
42,317
145,540
42,738
36,324
29,767
30,742
80,674
32,735
16,798
26,574
15,743
45,420
67,366
65,018
40,855
42,295
178,280
44,668
25,157
31,360
25,987
56,672
113,549
303,779
124,968
160,999
58,801
71,282
271,053
59,016
32,926
47,965
32,502
131,883
545,372
971,505
1,408,723
RECAPITULATION.
Total issued.
Total retired
Total outstanding
1,695,511
1,150,139
2,591,393
1,619,888
2,895,412
1,486,689
584,221
243,182
480,645
186,364
49,972
9,814
142,860
32,597
19,700
8,740
29,450
16,020
4,753,433
545,372
971,505
1,408,723
341,039
294,281
40,158
110,263
10,960
13,430
3,735,731
8,489,164
N o . 6.—Federal Reserve notes issued and redeemed by each Federal Reserve Agent, by months during 1920.
00
[In thousands of dollars.]
Month.
January
February...
March
April
May
June
July
August
September..
October
November..
December..
Total, 1920..
1919..
Outstanding Jan. 1,1921..
Jan. 1,1920..
Jan. 1,1919..
Total
outstanding at
beginning
ofeach
month in
1920.
3,295,789
3,125,885
3,255,213
3,299,065
3,326,188
3,357,788
3,405,877
3,423,300
3,485,265
3,593,909
3,663,517
3,663,530
Boston.
Total.
Issued.
deemed.
New York.
Philadelphia.
Cleveland.
Richmond.
Atlanta.
ReReReReReReIssued. deemed.
Issued. deemed. Issued. deemed. Issued. deemed. Issued. deemed. Issued. deemed.
d
100,359
258,110
168,740
165,415
146,710
179,290
158,525
195,835
220,505
195,825
155,875
270,065
8,160
27,820
21,600
11,100
18,200
24,600
15,300
23,300
28,300
6,000
17,400
23,900
57,858
23,734
13,673
21,977
15,126
16,700
28,429
22,203
16,965
19,303
17,746
22,728
2,215,254 1,775,312 225,680 178,844 373,080 276,442
2,482,515 2,046,570 225,500 139,768 753,120 632,420
270,263
128,782
124,888
138,292
115,110
131,201
141,102
133,870
111,861
126,217
155,862
197,864
3,735,731
3,295,789
2,859,844
16,913
8,792
10,040
12,594
10,784
13,862
12,845
11,242
12,097
17,593
22,460
29,622
301,554
254,718
168,986
16,480
47,620
32,100
25,280
34,160
36,760
26,560
12,800
19,280
31,260
35,000
55,780
1,036,354
939,716
819,016
9,600
13,800
18,300
10,826
8,593
9,763
7,254
9,786
8,882
8,956
9,330
10,127
10,442
14,635
9,940
36,700
21,560
27,650
12,630
17,500
16,450
27,885
27,865
12,700
12,300
25,820
24,729
10,276
10,842
13,333
10,124
12,427
12,866
10,893
8,452
10,685
12,677
16,805
2,479
9,910
8,070
14,500
6,860
16,360
15,800
22,815
20,500
18,100
13,700
29,910
19,400
10,436
11,851
14,473
13,284
11,294
13,467
14,498
13,405
13,549
14,222
19,796
8,045
15,330
15,090
16,350
10,770
11,330
10,010
16,615
16,635
43,075
13,560
19,225
21,805
9,933
16,312
14,227
14,467
15,664
11,316
13,662
12,190
10,313
20,352
16,142
177,420
195,660
134,017
189,635
249,000
163,565
154,109
179,004
162,777
169,675
196,035
183,598
176,383
147,110
9,700
34,320
11,020
8,500
8,200
11,080
14,500
26,200
12,200
25,423
291,299
247,896
241,871
146,283
378,693
283,802
266,520
162,070
161,034
151,705
150,998
179,760
160,108
123,620
>1
tr
O
W
H
W
O
N o . 6.—Federal Reserve notes issued and redeemed by each Federal Reserve Agent, by months, during
1920—Continued.
[In thousands of dollars.]
01
Chicago.
to
Month.
Issued.
January
February
March
April
May
June
July
August
September
October
November
December
Total, 1920
1919
Outstanding Jan. 1, 1921
Jan. 1, 1920
Jan. 1, 1919
23,600
53,120
27,670
33,280
26,720
24,500
20,280
21,620
33,280
26,540
17,720
37,000
Redeemed.
47,246
22,769
20,579
15,804
13,777
18,351
14,619
16,378
10,957
12,983
20,475
32,614
345,330
246,552
324,320
239,799
634 ,237
535,459
450 938
St. Louis.
Issued.
Redeemed.
Minneapolis.
Issued.
Redeemed.
Kansas City.
Issued.
Redeemed.
Dallas.
Issued.
3,650
11,660
7,020
6,540
6,260
8,060
9,180
13,500
11,320
12,080
7,580
9,620
15,211
8,947
9,643
10,365
9,436
9,896
8,842
9,856
7,476
9,056
8,006
9,064
1,360
3,200
3,400
2,875
1,600
1,200
3,130
3,420
8,135
4,435
2,595
4,100
6,318
3,298
3,581
3,563
3,031
3,422
4,265
3,617
2,416
3,310
3,311
6,375
3,730
7,160
4,610
3,100
2,860
5,170
7,490
9,260
8,060
8,810
2,670
9,650
8,028
5,699
5,114
5,982
4,551
4,755
5,287
5,170
4,279
4,625
5,804
5,706
3,255
7,710
5,520
6,580
7,690
5,500
2,865
5,760
13,050
7,305
106,470
134,025
115,798
98,426
39,450
39,990
46,507
50,272
72,570
57,900
65,000
67,662
155,391
164 ,719
129 ,120
81,386
88,443
98,725
118,125
110,555
120,317
San Francisco.
Redeemed.
Issued.
Redeemed.
3,840
6,365
2,964
4,066
4,829
5,511
5,424
5,920
5,120
3,798
4,658
7,460
7,020
9,960
3,560
11,080
9,660
10,760
17,230
16,960
12,660
21,880
15,920
19,380
32,920
20,967
11,108
10,594
11,382
7,765
9,620
14,364
12,275
10,496
10,015
12,907
17,357
69,245
55,730
63,135
37,581
181,970
186,330
148,850
135,544
170
84,754
78,644
60,495
313,144
280,024
229 ,238
H
tei
N o . 7.—Mutilated Federal Reserve notes of each denomination received, and destroyed by the Comptroller of the Currency from organization of banks to
Dec. SI, 1920.
to
[In thousands of dollars.]
o
Fives.
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond...
Atlanta
Chicago
St. Louis
Minneapolis.
Kansas City
Dallas
San Francisco
Total received .
Total destroyed.
Balance on hand.
...
...
....
Tens.
Twenties.
Fifties.
Hundreds.
Five
hundreds.
Thousands.
Five
thousands.
88,258
322,290
83,301
55,081
54,466
47,655
121,319
68,083
35,872
56,085
26,906
70,716
152,645
483,274
121,290
85,405
70,917
63,034
179,156
80,216
36,620
46,962
37,028
67,836
78,494
289,585
136,948
133,250
75,205
62,555
182,146
68,833
22,533
40,822
30,637
100,424
8,083
62,651
13,237
38,078
16,948
3,250
27,873
5,729
717
1,576
2,068
6,797
7,250
55,468
8,643
5,472
6,393
1,938
7,290
2,105
851
1,502
1,182
6,837
135
1,871
81
58
33
7
167
91
6
19
21
58
2,794
6,272
618
90
256
63
258
177
25
15
186
111
15
15
1,030,032
1,021,770
1,424,383
1,413,186
1,221,432
1,211,867
187,007
184,789
104,931
103,451
2,547
2,516
10,865
10,748
40
40
8,262
11,197
9,565
2,218
1,480
31
117
Ten
thousands.
40
430
5
10
m
i
5
Total.
337,714
1,221,856
364,118
317,439
224,228
178,502
518,209
225,244
96,624
146,981
98,028
252,784
490
480
3,981,727
3,948,847
10
32,880
NOTE.—During 1920 burned, badly mutilated, and fractional parts of Federal Reserve notes, amounting to 136,815, have been identified and valued and the bank of issue
I
o
w
o
N o , 8.—Federal Reserve notes of each denomination issued and redeemed by Federal Reserve Agents during 1920 and 1919, and amounts
Dec. 31, 1920, 1919, 1918, and 1917.
outstanding
[In thousands of dollars.
Outstanding Dec. 31.
1919
1920
Denomination.
Issued.
$5
$10..
....
$20.. .
$50
$100
$500
.
.
.
$1 000
$5 000
$10,000
Total
Redeemed.
Issued.
Redeemed.
1919
1920
1918
452,728
545,372
590,996
101,432
61,606
8,211
26,976
6,335
11,320
527,665
807,561
796,030
155,588
92,639
22,758
55,955
9,000
15,320
708,838
690,313
107,802
72,561
1,603
5,621
2,405
4,700
971,505
1,408,723
341,039
294,281
40,158
110,263
10,960
13,430
515,778
969,285
1,220,659
258,231
235,132
21,155
58,334
6,595
10,620
440,841
870,562
1,114,942
210,445
215,054
1,775,312
2,482,516
2,046,571
3,735,731
3,295,789
2,859,844
431,450
568,800
779,060
184,240
120,755
27,214
78,905
10,700
14,130
401,856
566,580
2,215,254
1917
220,036
467,945
461,837
9L532
109,274
8,000
1,350,624
o
N o . 9,—Federal Reserve Agents' statements of Federal Reserve notes for 1920.
[In thousands of dollars.]
RECEIVED BY FEDERAL RESERVE AGENTS FROM COMPTROLLER OF THE CURRENCY.
Federal Reserve agent at—
Boston
New York
Philadelphia
Cleveland
R ichmocd
.
Total.
.
...
284,700
419,080
169,800
243,900
104,820
Fives.
49,500
67,600
41,560
34,260
27,500
Tens.
86,000
122,960
41,720
48,520
27,640
Twenties.
105,600
109,920
59,520
97,920
33,680
Fifties.
13,200
37,000
17,200
46,200
10,800
Hundreds.
Five
hundreds.
14,800
32,000
6,800
15,200
4,400
400
9,200
600
600
Thousands.
9,200
36,400
2,400
1,200
800
Ten
Five
thousands. thousands.
2,000
4,000
4,000
No. 9.—Federal Reserve Agents1 statements of Federal Reserve notes for 1920—Continued.
to
[I n thousands of dollars.]
RECEIVED BY FEDERAL RESERVE AGENTS FROM COMPTROLLER OF THE CURRENCY—Continued.
Federal Reserve agent at—
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco. . .
Total . .
Total.
Fives.
Tens.
Twenties.
Fifties.
Ten
Five
Five
Hundreds. hundreds.
Thousands.
thousands. thousands.
120,680
443,740
105,400
36,040
66,240
53,260
193,000
22,840
63,900
33,960
11,320
21,120
10,500
40,920
22,560
115,960
32,640
8,480
16,640
21,960
37,120
44,080
173,280
29,600
13,440
25,280
16,000
66,160
7,400
45,800
4,400
600
800
1,200
13,200
9,200
30,000
2,800
1,600
2,000
2,000
15,600
6,600
5,600
800
200
400
400
4,800
1,200
7,200
4,000
4,000
2,240,660
424,980
582,200
774,480
197,800
136,400
29,600
75,200
8,000
12,000
8,000
7,200
1,200
400
2,000
o
RETURNED BY FEDERAL RESERVE AGENTS TO THE COMPTROLLER OF THE CURRENCY FOR DESTRUCTION.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
San Francisco.
144,364
276,442
122,157
143,409
94,300
85,493
231,442
112,448
40,767
60,640
49,311
124,490
33,391
61,215
28,524
25,478
21,955
21,292
53,604
35,371
14,116
20,334
12,009
34,066
63,663
99,256
38,828
37,448
29,419
29,052
73,905
37,611
14,960
19,885
18,289
32,921
36,991
68,241
44,242
58,997
32,125
32,168
84,221
34,864
10,889
18,858
16,553
50,337
4,001
22,419
5,721
18,595
7,463
1,873
15,282
3,131
342
725
1,373
3,519
3,407
19,499
4,201
2,764
3,100
1,039
4,060
1,201
422
Total....
1,485,263
361,355
495,237
488,486
84,444
2,734
3,493
122
1,519
77
52
26
7
151
89
11
16
20
54
44,876
2,144
8,246
40
380
3,898
564
70
202
62
219
171
10
10
27
14
185
100
35
440
ISSUED BY FEDERAL RESERVE AGENTS TO FEDERAL RESERVE BANKS.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
,
St. Louis
Minneapolis
Kansas City...
Dallas
San Francisco.
177,420
249,000
179,004
196,035
345,330
106,470
39,450
72,570
69,245
181,970
41,500
61,600
42,780
34,540
40,860
35,530
56,070
32,560
10,685
21,680
14,125
39,520
76,760
88,960
44,380
49,940
46,375
39,700
93,740
34,560
13,095
18,760
28,210
34,320
78,120
105,920
66,460
96,720
60,770
74,190
140,720
31,400
13,310
27,480
21,170
62,800
9,000
37,000
17,200
49,000
2,215,254
431,450
568,800
779,060
184,240
225,680
373,080
Total..
18,630
9,480
27,800
4,150
565
1,850
1,565
8,000
8,400
32,000
4,800
15,700
9,940
15,800
16,000
2,100
980
700
9,200
200
1,000
179
2,100
2,535
10,400
8,710
3,800
600
110
400
215
2,100
120,755
27,214
9,700
36,400
1,600
1,600
2,250
12,625
500
1,000
2,000
200
300
5,200
900
705
2,000
100
100
300
1,425
6,200
7,900
10,730
78,905
10,700
14,130
515
15
1,040
380
R E T U R N E D TO F E D E R A L RESERVE AGENTS BY OR FOR T H E ACCOUNT OF F E D E R A L RESERVE BANKS.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas
San Francisco.
Total....
178,844
276,442
134,017
154,109
169,675
176,383
246,552
115,798
46,507
65,000
63,135
148,850
1,775,312
37,891
61,215
31,584
26,859
35,045
33,992
56,454
35,851
14,711
20,694
12,794
34,766
401,856
72,663
99,257
42,528
40,108
46,864
48,143
80,086
38,531
17,255
21,726
25,898
33,521
566,580
46,071
68,241
49,342
62,357
58,715
72,128
90,301
35,964
12,939
20,978
20,743
53,217
6,001
22,419
5,721
20,795
16,463
4,123
15,282
3,531
462
724
1,592
4,319
5,007
19,499
4,201
3,863
10,300
5,584
4,060
1,301
612
848
1,238
5,093
422
1,518
77
52
26
5,256
150
89
11
16
40
554
9,234
3,898
564
70
2,202
7,157
219
371
517
14
830
1,900
50
110
5,750
9,730
590,996
101,432
61,606
8,211
26,976
6,335
11,320
60
to
GO
No. 9.—Federal Reserve Agents1 statements of Federal Reserve notes for 1920—Continued.
to
[In thousands of dollars.]
SUMMARY.
Total.
Federal Reserve notes.
Received from Comptroller
Returned to Comptroller
Fives.
Tens.
Twenties.
Fifties.
Five
Five
Ten
Hundreds. hundreds.
Thousands. thousands.
thousands.
2,240,660
1,485,263
424,980
361,355
582,200
495,237
774,480
488,486
197,800
84,444
136,400
44,876
29,600
2,144
75,200
8,246
755,397
63,625
86,963
285,994
113,356
91,524
27,456
66,954
7,965
11,560
Issued to banks
Returned by banks
2,215,254
1,775,312
431,450
401,856
568,800
566,580
779,060
590,996
184,240
101,432
120,755
61,606
27,214
8,211
78,905
26,976
10,700
6,335
14,130
11,320
Excess issues
439,942
29,594
2,220
188,064
82,808
59,149
19,003
51,929
4,365
2,810
3,295,789
3,735,731
515,778
545,372
969,285
971,505
1,220,659
1,408,723
258,231
341,039
235,132
294,281
21,155
40,158
58,334
110,263
6,595
10,960
10,620
13,430
Excess receipts
Outstanding at beginning of year- - Outstanding at end of year
r -TT
,
8,000
35
12,000
440
g
m
No, 10.—Federal Reserve Agents1 accounts at close of business, Dec. 31, 1920,
[In thousands of dollars.]
Total.
PhilaBoston. New York. delphia.
Cleveland.
Richmond.
Atlanta.
Chicago.
St. Louis. Minneapolis.
"Kansas
City.
Dallas.
San
Francisco.
RESOURCES.
Federal Reserve notes on hand
Federal Reserve notes outstanding
(issued to bank—net)
Collateral security for Federal Reserve notes outstanding:
Gold and gold certificates
Gold redemption fund
Gold settlement fund—F. R.
Board
Eligible paper—
Amount required
Excess amount held
Total
638,189
122,180
162,000
25,580
31,080
25,579
60,450
123,160
23,780
9,890
3,820
14,130
36,540
3,735,731
301,554
1,036,354
291,299
378,693
161,034
179,760
634,237
155,391
81,386
118,125
84,754
313,144
264,926
116,257
5,600
19,147
209,608
9,968
17,402
22,775
19,860
2,699
3,500
3,210
10,018
6,060
3,746
13,052
1,653
3,409
4,331
5,919
19,226
896,692
110,000
35,000
121,389
135,000
51,000
54,000
188,144
39,531
11,200
37,360
14,234
99,834
2,457,856
397,124
166,807
27,239
781,778
171,388
152,508
9,517
201,058
25,738
107,335
11,600
119,050
14,849
436,075
64,834
106,054
10,026
55,481
10,783
77,356
34,891
60,270
10,673
194,084
5,586
8,506,775
752,527
2,406,096
617,695
814,204
359,247
434,819
1,456,468
344,588
183,445
274,961
194,311
668,414
4,373,920
423,734
1,198,354
316,879
409,773
186,613
240,210
757,397
179,171
91,276
121,945
98,884
349,684
1,277,875
2,854,980
134,747
194,046
254,576
953,166
138,791
162,025
177,635
226,796
53,699
118,935
60,710
133,899
198,162
500,909
49,337
116,080
25,905
66,264
40,769
112,247
24,484
70,943
119,060
199,670
8,506,775
752,527
2,400,096
617,695
814,204
359,247
434,819
1,456,468
344,588
183,445
274,961
194,311
668,414
LIABILITIES.
Federal Reserve notes received from
Comptroller of the Currency—net
amount (liability to Comptroller)..
Collateral received from Federal Reserve Bank (liability to bank):
Gold
Eligible paper
Total
to
N o . 11.—Interdistrict movement of Federal Reserve notes during 1920.
to
[In thousands of dollars.]
Boston.
Federal Reserve Bank from which received or to
which returned.
Boston
New York
Philadelphia
Cleveland - . .
Richmond - • •
Atlanta
Chicago...
St. Louis
Minneapolis
Kansas City .
Dallas .
San Francisco
Total: 1920
1919
1918
1917
-
- .
. . .
^
....
.
. . . .
. . .
.
. .
Chicago.
Federal Reserve Bank from
which received or to which
returned.
Boston
New York
Philadelphia
Received.
Returned.
72,012
6,208
2,777
3,741
2,313
5,581
1,478
505
803
597
2,277
59,550
7,049
3,996
3,474
2,944
6,609
1,066
807
1,126
1,466
1,497
98,292
62,719
21,660
4,279
89,584
90,291
37,932
12,013
St. Louis.
New York.
Philadelphia.
Cleveland.
Richmond.
Atlanta.
Received.
Returned.
Received.
Returned.
Received.
Returned.
Received.
Returned.
Received.
59,214
72,684
6,893
71,720
6,453
63,405
56,467
23,655
16,953
14,149
28,409
8,609
2,598
4,963
4,826
12,048
77,548
54,227
29,436
19,925
58,505
7,963
5,954
7,046
7,408
17,908
4,026
54,278
14,117
2,298
20,088
11,229
14,319
12,144
3,218
6,331
2,008
501
1,010
903
2,162
14,623
11,809
4,159
7,433
1,551
639
1,388
1,527
1,455
3,484
29,574
11,355
8,007
3,690
16,768
12,487
8,818
8,946
6,271
25,079
9,269
1,211
2,377
1,505
3,487
6,340
3,330
19,573
2,468
1,160
1,873
1,522
1,151
2,925
19,780
4,152
3,946
13,037
2,220
14,005
3,031
6,050
8,184
8,621
4,333
2,298
348
998
825
1,610
12,847
6,387
2,161
644
2,444
3,052
696
6,408
9,420
479
1,843
4,890
2,835
8,280
12,320
759
1,870
5,401
1,217
231,891
235,408
118,050
29,997
358,604
282,083
118,629
24,800
121,209
78,300
39,531
8,067
114,442
94,525
62,355
14,961
130,566
96,675
40,366
5,176
71,032
64,564
21,249
2,534
71,453
70,806
31,114
6,450
69,994
72,911
26,603
2,080
69,715
58,397
21,108
6,211
63,337
54,621
20,439
4,650
Minneapolis.
Kansas City.
San Francisco.
Dallas.
Returned.
Total.
Received.
Returned.
Received.
Returned.
Received.
Returned.
Received.
Returned.
Received.
Returned.
Received.
Returned.
Received.
6,631
58,740
7,164
5,571
28,264
6,529
1,070
8,004
1,377
1,473
8,641
2,168
805
5,954
634
490
2,605
504
1,162
7,040
1,392
796
4,940
1,021
1,467
7,267
1,627
589
4,424
739
1,579
17,799
1,338
2,460
12,639
2,321
89,256
352,168
105,831
Returned.
98,724
235,329
124,626
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City....
Dallas
San Francisco..
Total: 1920.
1919.
1918.
1917.
21,777
6,530
8,976
25,263
4,293
6,363
37,458
16,411
14,836
4,760
14,288
197,571
149,978
49,708
5,129
1,466
648
752
21,853
1,899
1,222
347
488
16,397
939
1,907
11,355
8,418
2,880
3,191
634
4,949
95,670
75,559
37,558
7,980
42,785
39,607
14,2%
5,538
3,092
2,229
12,207
14,977
9,380
2,276
9,451
37,721
14,926
21,833
12,367
3,832
9,989
933
8,109
4,762
2,834
139,230
129,606
51,456
15,268
59,594
50,470
15,020
3,345
2,390
2,441
1,947
12,458
11,463
2,362
2,407
877
1,873
15,043
8,204
3,206
2,396
439
3,447
6,741
7,247
29,274
29,704
9,115
1,351
56,643
51,607
33,604
7,783
1,696
3,061
5,290
3,847
8,273
404
6,974
1,393
769
4,671
4,431
4,559
591
6,007
7,101
5,997
4,299
4,610
51,465
39,802
6,321
1,119
44,205
24,765
11,084
5,765
32,783
18,174
11,855
3,507
84,431
70,442
64,991
139,617
95,053
29,601
51,037
36,088
58,036
130,995
69,442
68,923
194,913
59,036
42,501
55,154
44,517
50,847
1,306
712
1,247
10,341
2,878
3,849
5,933
5,645
3,616
1,637
2,872
14,534
2,879
5,001
7,282
4,351
52,627
42,391
15,583
4,356
59,592 1,176,551 1,175,007
987,107
35,267 961.123
408,607
5,095 411.124
92,106
92,096
1,843
ft
in
w
o
ui
FEDERAL RESERVE BANK NOTES.
00
No. 12.—Federal Reserve Bank notes printed, issued, and redeemed by the Comptroller of the Currency since organization of banks, and amounts outstanding
and on hand on Dec. SI, 1920.
[In thousands of dollars.]
PRINTED.
Federal Reserve Bank.
Ones.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
San Francisco.
Total.
Twos.
Fives.
34,040
91,140
44,308
35,544
23,744
27,712
56,464
22,572
12,848
18,092
15,872
17,892
18,376
24,840
12,624
8,000
5,008
3,600
15,976
5,688
2,944
4,136
3,080
4,768
2,200
32,000
8,320
11,780
3,500
6,640
16,600
7,620
5,460
14,360
4,140
7,660
400,228
109,040
120,280
Tens.
Twenties.
Fifties.
240
2,000
400
2,400
1,600
480
2,400
200
3,600
2,000
1,360
24,040
14,080
2,600
Total.
670,268
w
o
ISSUED.
Boston.
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
..
. .
.
d
54,616
149,980
65,932
59,324
33,052
45,072
94,440
37,560
23,932
45,228
27,492
33,640
33,796
90,700
44,224
34,028
23,300
17,624
21,216
12,032
7,680
4,800
27,372
56,184
3,600
4,740
360
160
36,232
15,480
16,600
3,800
1,600
93,661
2,180
13,840
7,000
10,640
53,600
127,196
63,256
52,348
28,100
1,440
St. Louis
Mrnnflapolip . ,
Kansas City
Dallas
San Francisco
20,640
12,464
17,156
14,256
17,892
5,136
2,312
3,952
2,040
4,768
7,200
3,320
14,360
2,140
4,280
Total
392,012
100,640
86,300
1,000
480
5,040
2,400
3,600
2,000
14,040
7,840
200
34,656
18,096
44,108
22,836
26,940
200
601,032
ON HAND.
Boston...
New York...
Philadelphia
Cleveland
Richmond
Atlanta... .
Chicago
St. Louis
Minneapolis..
Kansas City
Dallas...
San Francisco
.. .
. . . . . .
.
.. .
Total
244
752
440
84
1,516
444
340
280
1,932
384
936
1,616
3,624
592
320
208
496
552
632
184
1,040
20
18,160
1,320
1,140
3,500
1 900
560
440
2,000
400
1,960
420
2,140
2,680
2,000
3,380
1,960
1,360
10,000
6,240
8,216
8,400
33,980
19,867
45,356
26,651
18,952
13,415
15,063
32,752
10,486
11,891
6,404
4,531
2,631
2,094
1,941
12,699
6,407
5,502
240
2,000
400
2,240
2,400
i
2.400
1 016
22,784
2,676
6,976
4,952
8,840
776
2,904
5,836
1,120
4,656
6,700
w
%
69,236
REDEEMED.
Boston
New York
Philadelphia
Cleveland...
Richmond
Atlanta
Chicago.
St. Louis
:...
'.
15,588
8,812
3,362
2,547
7,682
4,517
32,294
71,149
39,462
1,203
230
2,227
838
28,985
16,046
19,994
60
745
194,
52; 218
7
24,506
to
CD
No. 12.—Federal Reserve Bank notes printed, issued, andredeemed by the Comptroller of the Currency since organization of banks, and amounts outstanding
CO
and on hand on Bee. 31, 1920—Continued.
o
[In thousands of dollars.]
REDEEMED—Continued.
Federal Reserve Bank.
Minneapolis,-. T , , .
,
Kansas City
Dallas.
San Francisco
Total. .
Ones.
,
Twos.
Fives.
7,468
10,286
7,998
8,629
1,515
1,902
1,322
2,298
990
9,442
1,494
3,695
222,025
57,248
Tens.
4,386
Twenties.
1,627
2,586
1,273
56,916
10,511
4,858
239
1,141
237
Total.
Fifties
9,973
28,602
13,714
14,622
7
351,565
g
o
OUTSTANDING.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
13,929
45,344
17,573
15,076
9,885
12,309
23,432
5,052
4,996
6,870
6,258
9,263
7,138
9,325
5,628
3,149
2,169
1,506
6,668
1,774
797
2,050
718
2,470
2,193
8,918
2,683
2,330
4,918
646
585
130
1,573
162
100
855
286
654
1,014
773
727
Total....
169,987
43,392
29,384
3,529
2,982
593
5,138
193
193
21,306
56,047
23,794
23,363
12,054
16,238
41,446
10,150
8,123
15,506
9,122
12,318
249,467
w
o
RECAPITULATION.
Total printed
Total on hand Dec 31 1920
400,228
8,216
109,040
8,400
120,280
33,980
24,040
10,000
14,080
6,240
2,600
2,400
670,268
69,236
Totalissued
Total redeemed
392,012
222,025
100,640
57,248
86,300
56,916
14,040
10,511
7,840
4,858
200
7
601,032
351,565
169,987
43,392
29,384
3,529
2,982
193
249,467
Total outstanding Dec. 31, 1920.
. . . ,
N o . 13.—Federal Reserve Bank notes issued to Federal Reserve Banks under the provisions of the "Pittman
Act" to Dec. 31,1920,
[In thousands of dollars.]
Federal Reserve Bank.
Boston. .
New York
Philadelphia
Cleveland
Richmond
.
nta
Ones.
12,788
33,944
19,196
14,296
10,524
13,388
27,608
Twos.
6,728
13,272
4,664
4,184
1,736
1,656
7,344
Fives.
1,920
10,620
6,420
5,319
1,620
3,700
Tens.
1,440
960
Total.
21,436
59,276
30,280
23,799
12,260
16,664
39,612
Federal Reserve Bank.
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco.
Total
Ones.
Twos.
Fives.
Tens.
Total.
9,056
6,012
6,688
6,432
8,076
2,512
1,648
1,792
1,368
2,304
4,500
820
4,340
500
500
1,000
17,068
8,480
12,820
8,300
10,880
168,008
49,208
40,259
3,400
260,875
I
o
NOTE.—In December, 1920, the Federal Reserve Bank of St. Louis deposited $1,500,000 in lawful money to retire a like amount of its circulation. The securities released were
transferred and currency issued to banks included in the above as follows: Federal Reserve Bank of Cleveland, $500,000; Federal Reserve Bank of Atlanta, $1,000,000.
oo
CURRENCY RECEIPTS AND PAYMENTS.
CO
N o . 14.—Currency (paper and coin) received from and paid to member and nonmember banks, by months
to
during 1920.
[In thousands of dollars.]
Boston.
Month.
January..
February
March —
April
PayReceipts. ments.
PayReceipts. ments.
Richmond.
Atlanta.
Chicago.
Payments.
Payments.
Receipts.
54,612
31,523
47,497
52,936
52,579
64,916
64,221
61,088
64,130
68,030
62,671
74,776
38,496
50,323
50,773
44,812
55,069
.63,583
60,149
73,509
74,090
55,688
55,530
66,602
196,055
120,604
155,126
158,582
155,582
179,931
205,987
187,350
206,474
188,844
221,590
260,017
il8,442
182,254
179,913
197,173
169,633
175,813
164,702
155,665
182,272
181,530
172,926
213,422
47,238
29,133
39,990
46,698
39,590
48,536
51,624
48,801
51,910
53,258
53,670
59,640
33,690
60,277
48,045
46,796
48,879
47,084
53,279
00,712
57,511
64,210
55,338
67,444
44,351
28,654
44,009
42,047
44,476
54,121
50,866
43,016
48,419
52,161
54,735
72,193
34,702
54,559
49,094
56,434
44,997
53,220
52,455
64,376
65,611
60,306
54,778
67,450
21,049
12,055
13,824
16,575
16,191
16,014
14,754
13,968
13,256
15,048
18,511
23,255
9,649
13,789
15,536
18,450
16,824
19,957
21,186
23,221
26,902
28,186
23,541
26,738
36,057
23,050
28,071
28,943
27,604
27,214
27,547
23,736
23,351
27,677
30,726
31,509
16,183
20,201
19,300
24,901
19,439
18,517
21,780
19,398
24,773
53,031
19,501
31,952
78,772
46,843
72,454
77,540
78,195
88,870
91,847
74,836
83,192
86,204
89,864
103,067
60,803
80,483
84,662
90,469
85,765
87,358
89,494
91,567
94,936
89,562
79,215
102,781
698,979
505,853
688,624
402,341
2,236,142
1,654,157
2,093,745
1,834,471
570,094
444,475
643,265
389,269
579,048
383,296
657,982
362,123
194,500
169,276
243,979
177,321
335,485
219,365
288,976
175,453
971,684
648,102
1,037,095
614,188
St. Louis.
Month.
Cleveland.
PayReceipts. ments.
January
February
March
April
May
June
July
August
September
October
November
December
Total, 1920
1919
Philadelphia.
New York.
PayReceipts. ments.
34,529
26,148
35,633
36,193
22,337
26,988
24,643
27,121
Payments.
Minneapolis.
Receipts.
6,431
3,129
3,843
3,967
Pay-
3,316
5,385
5,870
5,126
Kansas City.
Receipts.
16,115
9,984
13,658
16,167
Pay-
9,199
12,115
12,235
11,163
Dallas.
PayReceipts. ments.
11,206
6,755
10,934
11,854
7,009
8,883
10,059
9,372
Receipts.
San Francisco.
Receipts.
36,250
20,714
24,788
24,884
Pay-
13,518
18,883
24,953
38,388
Total, 1920.
Receipts.
582,665
358,592
489,833
516,386
melts.
367,344
534,140
525,083
570,2ft5
Total, 1919.
Receipts.
520,506
279,180
295,602
364,492
Payments.
195,056
260,334
312,392
305,264
o
w
H
o
May
June
July
August
September
October
November
December
Total, 1920
1919
33,904
38,340
36,945
35,261
38,137
40,083
42,066
46,188
27,359
28,566
32,284
32,753
37,432
40,642
31,586
38,624
4,075
4,611
5,177
4,527
4,900
4,845
7,535
11,820
5,314
6,184
5,725
6,606
11,355
7,433
7,380
9,301
13,252
16,087
14,948
13,190
16,445
17,466
16,792
19,994
11,413
12,544
14,275
17,553
17,373
15,046
13,417
19,516
12,126
10,914
12,822
12,395
11,724
16,159
21,621
20,872
8,618
9,811
9,591
12,567
17,500
13,816
8,294
11,221
25,310
27,933
38,471
28,343
30,899
31,454
31,482
58,222
30,531
44,271
45,032
50,626
57,917
49,918
57,104
67,678
502,884
577,487
615,209
546,511
592,837
601,229
651,263
781,553
523,841
566,908
569,952
608,553
667,672
659,368
578,610
722,729
443,427
288,738
370,335
205,447
64,860
57,347
78,995
52,826
184,098
133,234
165,849
103,168
159,382
75,788
126,741
94,718
378,750
225,094
498,819
215,581
6,816,449
6,894,405
412,864
397,900
452,286
362,698
376,763
447,985
368,015
526,434
299,258
388,270
413,099
430,352
430,104
491,117
481,922
619,738
4,804,725
4,626,906
d
|
Q
ii
134
ANNUAL. REPORT FEDERAL, RESERVE BOARD.
CURREhCr RECEIVED FROM AND PAID TO
MEMBER AND NON-MEMBER BANK?
BY THE FEDERAL RESERVEBANKS
^^^
• • •
Receipts
WfWAA
&cccss ofReceipts
1920
j/M. I rEB\ MAR\APR\MAY\lUNfyUlX\AUG. \SCFT\ OCr.\/W.\aZ.\
1
No. 15.—Currency (paper and coin) received from and paid to member and to nonmember banks by each Federal Reserve Bank and branch during 1920.
[In thousands of dollars.]
Receipts.
Federal Reserve Bank or branch.
Boston
New York
Buffalo
Philadelphia
Cleveland
Cincinnati
Pittsburgh
Richmond
Baltimore
Atlanta
Birmingham
Jacksonville
Nashville
New Orleans
, Savannah (agency).
Chicago
Detroit
St. Louis
Little Rock
Louisville
Memphis
Minneapolis
From
member
banks.
643,782
.,935,651
150,027
548,123
169,959
97,022
305,854
96,798
86,889
106,363
37,612
44,696
27,449
93,529
11,663
657,295
295,753
273,537
20,647
63,413
54,544
64,333
From nonmember
banks.
55,197
148,768
1,696
21,971
3,181
1,769
1,263
7,841
2,972
2,730
10,279
784
380
18,636
16,569
6,784
1,273
6,660
527
Payments.
Total.
698,979
2,084,419
151,723
570,094
173,140
98,791
307,117
104,639
89,861
109,093
47,891
45,480
27,449
93,909
11,663
675,931
295,753
290,106
27,431
64,686
61,204
64,860
To member banks.
683,881
1,875,270
163,711
643,265
205,075
85,302
364,955
111,122
132,600
71,561
36,041
33,856
21,331
75,708
9,388
699,866
335,215
224,313
22,205
51,092
46,847
78,616
To nonmember
banks.
4,743
45,980
8,784
1,177
1,214
259
190
67
39,393
650
531
517
2,014
14,744
2,336
843
7,955
379
Excess.
Total.
Receipts. Payments.
688,
10,355
1,921,
172,
643,
206,
163,169
86,
365,
111,
132,
110,
36,
33,
21,
76,
12,275
%
701,
335,
239,
24,
51,
54,
78,
20,772
2
Q
73,171
33,112
*i
W
a
58,097
gj
6,673
J]j
42,806
1,861
W
p>
11,200
11,624
5,587
17,684
2,275
25,949
39,462
51,049
2,890
12,751
6,402
14,135
CO
ax
N o . 15«—Currency {paper and coin) received from and paid to member and to nonmember banks by each Federal Reserve Bank and branch during
1920—Continued.
CO
[In thousands of dollars.]
Receipts.
Federal Reserve Bank or branch.
Kansas City
Denver
Oklahoma City
Omaha
,..
Dallas
El Paso
Houston
San Francisco
Los Angeles...
Portland
Salt Lake City.
Seattle
Spokane
Total, 1920..
1919..
From
member
banks.
125,205
32,696
1,557
23,282
03,813
20,426
32,457
177,636
78,321
30,297
13,647
48, 231
8,692
6,477,199
4,492,379
From nonmember
banks.
530
523
40
265
2,512
2,381
1,793
17,120
2,382
132
49
2,153
339,250
312,346
Payments.
Total.
125,
33,
1,
23,
96,
28,
34,
194,
80,
30,
13,
50,
6,816,449
4,804,725
To member banks.
I l l , 239
23,782
691
29,651
71,382
17,486
32,083
192,741
88,153
30,949
16,526
40,548
13,324
6,639,775
4,533,100
To nonmember
banks.
67
417
2
502
2,443
2,845
111,412
936
284
684
2,910
352
Excess.
Total.
111,306
24,199
691
29,653
71,884
19,929
34,928
304,153
89,089
31,233
17,210
43,458
13,676
254,630
6,894,405
93,806 * 4,626,906
Receipts.
14,429
9,020
906
Payments.
%
:.;::: I
6,106
24,441
8,878
hj
O
H
678
&
109,397
feJ
8,386
S
3,514
6,926
GO
4,894
77,956
177,819
O
CONDITION OF FEDERAL RESERVE BANKS.
N o . 16.—Resources and liabilities of all Federal Reserve Banks combined at close of business on each Friday from Jan. 2 to Dec. SO, 1920.
[In thousands of dollars.]
Earning assets.
Cash reserves.
Date.
1920.
2
9
16
23
30
Feb. 6 . . . . . . .
13
20
27
Mar. 5
12
19
26
Apr. 2
9
16
23
30
Jan.
Gold setGold
Gold and tlement
fund—
with
gold cer- Federal
foreign
tificates. Reserve agencies.
Board.
Gold
with
Federal
Reserve
agents.
Gold redemption
fund.
Total.
363,723
380.263
456,260
441,499
439,524
434,160
424,832
396,138
385,594
389,332
391,049
388,271
363,132
379,558
368,724
360,088
374,380
376,003
1,205,596
1,209,508
1,136,326
1,126,261
1,119,426
1,116,427
1,121,757
1,150,798
1,145,479
1,138,690
1,142,576
1,161,695
1,186,829
1,169,137
1,173,125
1,170,313
1,150,658
1,137,928
122,367
107,977
118,850
121,221
114,229
121,259
126,544
109,083
116,064
116,071
119,380
112,174
117,776
117,198
119,743
122,883
126,220
135,447
2,062,615
2,041,371
2,043,878
2,026,650
2,012,656
1,991,560
1,988,380
1,969,814
1,966,836
1.937,077
1,936,364
1,934,581
1,934,755
1,950,259
1,957,490
1,955,294
1,949,693
1,936,720
239,609
220,301
212,119
220,347
225,156
205,393
202,425
200,973
206,877
180,162
169,978
159,660
154,237
171,585
183,117
189,229
185,654
174,561
131,320
123 ,322
120,323
117,322
114,321
114,321
112,822
112,822
112,822
112,822
112,781
112,781
112,781
112, 781
112,781
112,781
112,781
112,781
United States securities.
Bills discounted.
Gold.
Legal
tender
notes,
silver,
etc.
58,657
60,728
60,403
61,246
61,277
63,096
64,133
65,626
116,379
117,553
120,366
125,745
122,400
130,169
129,816
132,437
133,875
134,045
Total.
2,121,272
2,102,099
2,104,281
2,087,896
2,073,933
2,054,656
2,052,513
2,035,440
2,083,215
2,054,C30
2,056,730
2,060,326
2,057,155
2,080,428
2,087,306
2,087,731
2,083,568
2 ; 070, 765
Secured
by GovAll other.
ernment
war obligations.
1,484,262
1,352,085
1,351,454
1,386,348
1,457,892
1,451,557
1,469,562
1,525,203
1,572,980
1,520,494
1,515,959
1,353,509
1,441,015
1,400,664
1,410,069
1,430,888
1,448,804
1,465,320
746,925
727,670
748,611
767,110
716,465
751,982
823,873
833,321
. 880,531
888,194
907,487
854,172
1,008,215
999,849
957,469
980,303
1,029,378
1,069,751
3
Bills
bought
in open
market.
574,631
574,722
575,675
575,789
561,313
554,750
542,600
531,703
531,367
513,854
504,172
463,232
451,879
424,041
422,241
416,784
404,672
407,247
Certificates of
Bonds. Victory
notes. indebtedness.
26,836
26,836
27,036
27,036
27,036
26,776
26,775
26,775
26,775
26,775
26,775
26', 797
26,798
26,798
26,798
26,799
26,797
26,797
64
264
64
64
64
63
63
63
as
68
68
68
68
68
68
68
68
68
349,090
302,406
319,684
276,765
276,421
276,064
290,317
268,610
267,511
266,567
267,461
410,119
263,056
345,550
339,919
303, 728
267,066
266,649
Total.
s
a
o
3,181,808
2,983,983
3,022,524
3,033,112
3,039,191
3,061,192
3,153,190
3,185,675
3,279,232
3,215,952
3,221,922
3,107,897
3,191,031
3,196,970
3,156,564
3,158,570
3,176,785
3,235,832
Co
N o . 16.—Resources and liabilities of all Federal Reserve Banks combined at close of business on each Friday from Jan. 2 to Dec. , 9, 1920—Continued.
[In thousands of dollars.]
Earning assets.
Cash reserves.
Bills discounted.
Gold.
Date.
Gold setGold
Gold and tlement
with
fund—
gold cer- Federal
foreign
tificates. Reserve agencies.
Board.
1920
172,683 392,751
May 7
171,208 389,149
14
169, 735 399,889
21
167,135 424,452
28
June
~i~."~ T:64731F~ -43*7227168,193 431,905
11
162,878 400,833
18
171,120 402,628
25
171,176 402,760
July 2
168,929 402,760
9
168,767 393,905
16
180,529 387,345
23..
174,179 389,389
30
185,165 381,259
Aug. 6
179,630 389,927
13
183,125 366,892
20
186,139 373,272
27
165,070 410,507
Sept. 3
150,990 428,768
10
164,529 331,308
17
183,826 341,303
24
112,781
112,781
112,781
111, 530
111,531
111,531
111,531
111,531
111,531
111,531
111,531
111,531
111,531
111,531
111,455
111, 455
111,455
111,455
111,455
111,455
Gold
with
Federal
Reserve
agents.
Gold redemption
fund.
1,121,311
1,115,902
1,098,823
1,112,040
1,110,864
1,103,751
1,161,784
1,150,175
1,146,944
1,145,102
1,152,875
1,160,215
1,153,712
1,150,343
1,164,562
1,164,264
1,154,684
1,132,219
1,147,239
1,237,942
1,211,619
142,054
150,101
158,489
137,946
142,712
149,678
125,295
133,921
139,285
142,994
144,343
143,651
148,893
152,307
131, 708
140,615
146,275
143,059
137,774
127,893
141,632
Total.
Total.
Legal
tender
notes,
silver,
etc.
1,941,580
1,939,141
1,939,717
1,953,103
1,960,853
1,965,058
1,962,321
1,969,375
1,971,696
1,971,316
1,971,421
1,983,271
1,977,704
1,980,605
1,977,358
1,966,351
1,971,825
1,962,310
1,976,226
1,973,127
1,989,835
134,507
139,252
139,821
139,393
138,087
137,533
138,579
139,230
137,805
136,877
147,626
150,741
150,936
151,139
155,527
155,486
156,002
155,647
155,021
160,018
161,759
2,076,087
2,078,393
2,079,538
2,092,496
2,098,940
2,102,591
2,100,900
2,108,605
2,109,501
2,108,193
2,119,047
2,134,012
2,128,640
2,131,744
2,132,885
2,121,837
2,127,827
2,117,957
2,131,247
2,133,145
2,151,594
Secured
by Government
All other.
war obligations.
1,444,175
1,508,104
1,446,723
1,447,962
1,433,415
1,440,931
1,231,841
1,277,980
1,294,892
1,296,350
1,256,258
1,247,371
1,241,017
1,285,398
1,296,981
1,301,609
1,314,830
1,332,892
1,299,123
1,202,£93
1,220,423
1,060,447
1,043,186
1,053,663
1,071,469
1,130,843
1,082,019
1,064,296
1,153,814
1,250,302
1,265,243
1,233,890
1,222,536
1,250,613
1,264,435
1,292,025
1,320,$20
1,352,297
1,412,035
1,376,076
1,306,610
1,484,041
United States securities.
Bills
bought
in open
market.
Bonds.
409,834
413,292
417,368
418,600
410,688
403,896
398,591
399,185
390,085
372,591
356,471
353,543
345,305
339,390
320,618
320,597
321,965
313,501
316,982
321,605
307,624
26,796
26,796
26,796
26,794
26,795
26,796
26,795
26,793
26,792
26,793
26,791
26,791
26,791
26,810
26,810
26,809
26,810
26,806
26,807
26,805
26,808
CertifiVictory cates
of
notes. indebtedness.
68
69
69
69
69
69
69
69
69
69
69
68
69
69
69
69
69
69
69
69
69
273,037
279,463
276,761
279,531
274,816
280,108
347,091
325,434
311,379
281,942
294,182
287,909
298,520
271,490
277,836
277,158
273,701
279,633
332,426
393,479
270,623
Total.
3,214,357
3,270,910
3,221,380
3,244,425
3,276,626
3,233,819
3,068,683
3,183,275
3,273,519
3,242,988
3,167,661
3,138,218
3,162,315
3,187,592
3,214,339
3,247,062
3,289,672
3,364,936
3,351,483
3,251,161
3,309,588
CO
00
Oct. 1
8,
55
22.
29.
Nov. 5.
12
19
26
Dec. 3
10
17
23
30.
Date.
1920.
2
9
16
23
30
Feb. 6
13
20
27
Jan.
201,046 362,468
216,703 391,974
192,499 381,753
161,438 389,069
164,849 416,163
174,702 417,984
169,814 409,075
170,266 400,678
182,647 411,227
201,131 388,743
194,869 410,917
200,494 353,866
273,749 363,723
263,952 j 356,244
Bank
premises.
10,369
10,410
10,461
10,493
10,559
10,586
11,103
11,144
11,226
111,455
90,409
87,021
80,441
74,686
77,514
77,244
74,303
70,210
67,864
67,745
67,745
3,300
3,300 i
1,180,393
1,142,412
1,169,038
1,203,210
1,175,118
1,152,346
1,177,689
1,205,746
1,197/681
1,194,204
1,210,563
1,269,725
1,253,492
1,276,214
147,710
154,766
161,790
160,423
172,504
179,127
174,856
157,117
162,181
170,733
151,177
150,538
161,538
159,623
2,003,072
1,996,324
1,992,101
1,994,611
2,003,320
2,001,673
2,008,678
2,008,110
2,023,946
2,022,675
2,035,271
2,042,368
2,055,802
2,059,333
TJncol- Five per
lected
cent reitems demption
and other fund
Total rededucagainst All other sources and Capital
tions
Federal resources. liabilities. paid in.
Reserve
from
Bank
gross
deposits. notes.
1,171,778
1,019,140
1,116,852
1,022,633
933,128
896,971
1,052,333
1,029,653
1,026,726
13,130
13,254
12,865
12,130
12,260
12,232
12,114
12,724
12,276
5,733
5,241
5,463
5,483
5,341
5,048
4,122
3,851
3,681
6,504,090
6,134,127'
6,272,446
6,171,747
6,074,412
6,040,685
6,285,375
6,278,487
6,416,356
87,433
87,451
87,529
87,589
87,892
89,119
89,674
90,531
90,702
162,123
161,944
162,810
162,659
164,718
168,056
171,333
172,118
171,364
175,520
177,136
180,ICO
180,952
189,830
2,165,195
2,158,2"68
2,154,911
2,157,270
2,168,038
2,169,729
2,180,011
2,180,228
2,195,310
2,198,195
2,212,407
2,222,468
2,236,754
2,249,163
1,183,017
1,217,098
1,192,810
1,199,139
1,203,905
1,215,101
1,180,977
1,158,907
1,192,425
1,160,685
1,169,244
1,158,974
1,177,263
1,141,036
1,526,584
1,578,573
1,581,060
1,550,143
1,597,392
1,611,724
1,603,773
1,514,467
1,542,975
1,616,116
1,547,565
1,437,775
1,554,428
1,578,098
301,510
305,690
319,520
300,666
298,375
299,769
287,854
275,227
247,703
243,055
244,690
234,609
241,167
255,702
26,855
26,856
26,856
26,856
26,868
26,865
26,863
26,871
26,869
26,857
26,857
26,859
26,859
26,859
Deposits.
Surplus.
120,120
120,120
120,120
120,120
120,120
120,120
120,120
120,120
120,120
Government.
Members'
reserve.
38,920
27,798
34,698
90,448
72,974
42,446
24,218
75,587
133,913
1,922,800
1,850,219
1,943,561
1,859,149
1,850,712
1,869,438
1,837,865
1,828,891
1,871,961
69
69
69
69
69
69
69
69
69
69
69
69
271,482
273,951
301,661
280,807
269,434
268,047
269,310
331,154
293,676
287,010
328,294
365,555
281,253
261,263
3,309,517
3,402,237
3,421,976
3,357,680
3,396,043
3,421,575
3,368,846
3,306,695
3,303,717
3,333,792
3,316,749
3,223,841
3,281,039
3,263,027
Note circulation.
All other,
Deferred including
foreign
Governbility.
ment
credits.
944,884
760,590
849,854
795,782
720,520
654,735
880,451
815,606
810,402
69
69
116,307
96,425
107,800
95,097
95,418
95,876
97,044
95,366
95,026
Total
gross.
Federal
Reserve
notes.
3,022,911
2,735,032
2,935,913
2,840,476
2,739,624
2,662,495
2,839,578
2,815,450
2,911,302
2,998,992
2,914,368
2,849,879
2,844,227
2,850,944
2,891,775
2,959,087
2,977,124
3,019,984
Federal All other
Reserve liabilities.
Bank
notes—
net
liability.
258,561
259,099
258,482
254,843
250,530
248,780
245,810
240,858
237,131
16,073
18,057
20,523
24,492
25,302
28,396
31,106
34,404
37,117
CO
N o , 16«—Resources and liabilities of all Federal Reserve Banks combined at close of business on each Friday from Jan 2 to Dec. , 0, 1920—Continued.
[In thousands of dollars.\
Date.
1920.
Mar. 5
12
19
26
Apr. 2
9
16
23
30
May 7
14
21
28
June 4
11
18
25
July 2
9
16
Bank
premises.
11,771
11,791
11,793
11,990
12,009
12,104
12,123
12,328
12,369
12,433
12,530
12,658
12,668
12,942
13,111
13,254
13,492
13,658
13,734
14,084
Deposits.
Uncol- Five per
lected cent reitems demption
' Total reAll other,
and other fund
including
deduc- against resources. sources and paid in. Surplus.
Govern- Members' Deferred foreign
tions
Federal
liabilities.
from
GovernReserve
reserve.
ment.
bility.
Bank
gross
ment
credits.
deposits. notes.
865,850
849,752
956,381
768,788
833,023
793,615
957,678
817,028
713,353
705,603
807,445
755,476
747,190
789,616
772,903
949,977
750,486
785,059
797,347
890,554
16,226
13,851
14,387
13,900
13,689
12,481
14,015
13,438
12,091
12,128
11,787
12,081
11,862
11,745
11,794
12,110
12,148
12,424
12,293
12,400
4,174
5,485
5,121
4,907
4,474
5,802
5,305
5,178
6,057
5,621
5,006
5,028
5,699
5,640
5,751
8,053
6,707
4,296
3,822
4,271
6,168,603
6,159,531
6,155,905
6,047,771
6,140,593
6,067,872
6,235,422
6,108,325
6,050,467
6,026,229
6,186,071
6,086,161
6,114,340
6,195,509
6,139,969
6,152,977
6,074,713
6,198,457
6,178,377
6,208,017
90,966
90,871
90,958
91,059
91,284
91,160
91,272
91,364
91,639
92,536
93,107
93,786
94,000
94,108
94,284
94,462
94,506
94,594
94,639
94,730
120,120
120,120
120,120
120,120
120,120
120,120
120,120
120,120
120,120
120,120
120,120
120,120
120,120
120,120
120,120
120,120
120,120
164,745
164,745
164,745 1
83,879
55,324
60,503
27,711
10,416
8,777
30,595
42,810
37,592
22,437
44,153
24,368
36,433
36,745
21,830
56,256
14,189
22,809
15,919
1,858,184
1,886,929
1,850,106
1,867,125
1,899,063
1,850,960
1,898,810
1,856,092
1,859,844
1,818,615
1,874,145
1,833,665
1,852,916
1,858,774
1,869,240
1,800,117
1,831,916
1,874,161
1,839,704
11,700 j 1,868,428
624,655
60S, 600
632,835
546, 696
565,880
575,412
677, 282
595,125
529, 855
544, 564
634,813
585,517
561,244
609,396
579,466
633,722
556,623
581,610
594,434
646,782
91,525
97,009
100,969
100,160
131,933
100,605
103,666
96,588
98,794
94, 284
93,6S9
96,305
91,037
91,876
81,500
77,485
69,981
62,475
55,159
50,585
Note circulation.
Total
Federal
gross.
notes.
Federal All other
Reserve liabiliBank
ties.
notesnet
liability.
2,658,243
2,647,862
2,644,413
2, 541,092
2,607,292
2,535,754
2,710,353
2,590,615
2,526,085
2,479,900
2,646,800
2,539,855
2,541,630
2,596,791
2,552,036
2,567, 580
2,472,709
2,541,055
2,505,216
2,577,495
3,030,010
3,039,750
3,047,133
3,048,039
3,077,323
3,080, 217
3,073,693
3,068,307
3,074,555
3,092,344
3,083,234
3,085,202
3,107,021
3,127,291
3,112,205
3,104,810
3,116,718
3,168,814
3,180,948
3,135,893
229,167
220,738
211,132
201,392
196,594
190,157
186,501
180,631
177,881
177,972
176,805
177,371
179,185
181,252
182,382
183,904
185,604
189,232
190,287
189,375
40,097
40,190
42,149
45,469
47,980
50,464
53,483
57,288
60,187
63,357
66,005
69,827
72,384
75,947
78,942
82,101
85,056
40,017
42,542
45,779
23......
30
Aug. 6
13
20
27
Sept. 3
10
17
24
Oct. 1
8
15
22
29
Nov. 5
12
19
26
Dec. 3
10
17
23
14,243 772,333
14,289 711, 064
14,444 733, 688
14,604 799, 202
14,654 782, 240
14,869 729, 889
14,921 753,707
15,086 837, 060
15,263 1,097,408
15,370 818, 958
15.455 820, 280
15,634 796,723
15, 766 998,488
15,864 825,740
15, 993 742, 976
16, 081 787, 960
16,577 772,277
17,047 804,424
17,333 709,401
17.456 734,523
17, 658 666, 505
17,952 902,042
18,168 761, 005
18,450 717,227
12,742
12,684
13,002
11,947
11,600 !
11,956 j
11,695 |
11,788 I
12,024 |
11,824 |
11, 856
11, 666 |
12,158 |
12, 953 |
12,854
12, 059
12,090
12,376
11,541 j
12,197
11,387
12,530
12, 652
12,752
3,576
3,777
3,500
3,859
3,827
4,558
3,875
6,569
4,660
4,941
5,414
4,833
6,951
5,401
5,703
6,032
6,790
6,030
7,187
7,716
8,332
8,430
8,417
6,075,124
6,032, 769
6,0&3,970
6,176, 836
6,181, 220
6,178, 771
8,267, 091
6,353, 233
6,513, 661
6,312,275
6,327,717
6,389,361
6,610,250
6,374, 908
6,341, 607
6,413,436
6,356,591
6,326,800
6,244,489
6,303,879
6,233, 038
6,387,263
6,318,035
6,269,517
95,008
95,225
95,341
96,551
96,759
97,055
97,133
97,191
97,366
97,401
97,358
97,519
97,594
97, 692
97, 753
97, 824
98,847
98, 929
99,020
99,140
99,174
99,275
99,458
99,770
164,745
164, 745
164,745
164,745
164,745
164,745
164, 745
164,745
164, 745
164,745
164,745
164, 745
164,745
164, 745
164,745
164, 745
164, 745
164,745
164, 745
164, 745
164, 745
164, 745
164,745
164,745
11,972
12,167
20,780
11,623
54,959
43,510
65,387
30,975
135,178
46,493
46,454
43, 365
13,975
15,015
18, 754
47,378
17,845
12,259
15, 909
60, 688
28,394
53,173
26, 049
27,639
1,825,564
1,808,156
1,816, 798
1,834, 542
1,793,675
1,818,502
1,829, 832
1,828,924
1,821, 843
1, 800, 677
1,776,243
1,825, 906
1, 868, 016
1,779, 345
1,805, 661
1,777,256
1,801, 864
1,781, 806
1,711,774
1,763,822
1,758, 967
1,738, 826
1,721,391
1,748,979
572,109
536, 690
549, 778
599,397 I
591, 094 !
542, 564
554,475
617, 785
676, 265
595,342
608, 056
609, 980
776, 887
634, 097
571, 807
631,326
601, 624
616, 871
582,432
551, 529
516, 934
614,166
539, 261
522,638
48,332
51,296
44,821
46,090
44, 828
43,180
39,123
38,793
42,409
34,910
35,363
27, 648
33,740
21,929
21, 307
26,923
25,708
26,228
22,927
25,742
24, 511
38,471
23,652
22,161
2,457,977
2,408,309
2,482,177
2,491,652
2,484,556
2} 447, 756
2,488, 817
2,516,477
2,675,695
2,477,422
2,466,116
2,506, 899
2,692,618
2,450,386
2,417,529
2,482, 883
2,447,041
2,437,164
2,333, 042
2,401,781
2,328, 806
2,444, 636
2,310,353
2,321,417
3,118,205
3,120,138
3,141, 861
3,169,181
3,174, 725
3,203,637
3,243, 270
3,295,185
3,289, 681
3,279, 996
3,304, 690
3,322,123
3,353, 271
3,356,199
3,351,303
3,354,180
3,328, 985
3,307,435
3,325,538
3,312,039
3,311,842
3,344,332
3,404, 931
3,344,686
190,067
192,168
194, 834
196, 912
198, 563
200,793
205,423
209,073
212, 219
214,180
213,412
213,154
213,533
213, 838
214, 961
214,533
215,080
213, 881
214, 610
214,939
214, 523
217, 434
218, 832
216,960
49,122
52,184
55,012
57,795
61,872
64,785
67,703
70,562
73,955
78,531
81,396
84,921
88,489
92,048
95,310
99,271
101,893
104,646
107,534
111,235
113, 948
116,841
119,716
121,939
a
o
t
B
c
*4
o
ft
>
7\
in
142
ANNUAL REPORT FEDERAL, RESERVE BOARD.
MOVEMENT OF EARNMG ASSETS
OFALLFEDERAL RESERVE SAHKS COMBINED
DURING 1320
N
i 600
400
1 200
n
600
400
200
mHI
600 i
! 4OQ
\ 200
i
!
/>
3000
2800
2600
2400
2200
2000
1800
1600
1400
1200
IDfY)
SHY)
600
400
200
0
o
UNITED STATES SECURITIES.
Wk
600
4O0
200
^^
ACCEPTANCES BOU6HT.
^
t
"^
•
wHi
Y/M
^
s
s
^
V//Y/,
/////A /yyyy,'/////, y
WA,W/A.'/////A
WA
s
/YAW1?
///A
/M
W/A
W/AW/AW/A WAt
W/,W/A.W/AW/AAM
W///W/AW/A
'/A/A
W/Ay4MW%
WAW/
W/AW/A.
W/AWAWAW///, //AW/
HP9 w%
/////////////
//////
w//
'/////A
/AAAAA/
'AAAAA/
3600
1
14(Y)
J^nJU
3200
3000
2800
2600
2400
2200
2000
1800
1600
1400
^^ w$
^^
MS
XVOsV
AVsNV
^ $ $
^^
^
$
^
^
=
$
^
mm^s ^^ W^
HH
MS
^ ^
§$^
^§$
^^
Hi
Hi
^M
?$^
IOOO
^
600
N^in
^^^^
^
400.
200
JAN.
^
^
^
$^^
^^
^
TOTAL EARNING'ASSETS\
FEBMARAPR. MAY\lUIitJULYAU6.sm.OCT. NOV. DEC.
600
400
200
0
L>: TOTAL BILLS DISCOUNTED. VV.- WARPAPER.
3600
3000
2600
2600
2400
2200
2000
IBOO
1600
MOO
1200
//yyi
3200
3000
2800
2600
2400
2200
2000
1800
1600
1400
1200
IOOO
800
600
400
200
Q
143
CONDITION OF FEDERAL RESERVE BANKS.
NET DEPOSITS, ER.NOTE ORCUIATION,
TOTAL RESERVES. AND RESERVE PERCENTA6E
OFALLfEDERALRESERVEBANKS COMBINED
DURING 1320
PERCENT
SO
mean
so
30
40
30
RESERVE PERCENTAGE, (RATIO OF 3+4)
N
5000
5000
4600
4S00
4000
4000
3S00
3500
3000
3000
2500
2500
2000
£000
ISOO
1500
1000
soo
o
WO
500
O
6: CASH RESERVES. 4: DEPOSITAUDHOTE LIABILITIES..
1500
1000
1000
500
500
0
.-DEPOSITS. E.'F.R.NOTE CIRCULATION.
JAM. FEB. MAR. APR. MAY JUIHE JULY AU6.
SEPT. OCT. NOV. DEC
N o . 17.—Net amount of accommodation received from or extended to other Federal Reserve Banks.
[End-of-month holdings in thousands of dollars. Plus sign indicates net accommodation extended; minus sign, net accommodation received.]
Date.
Boston.
New
York.
Philadelphia .
Cleveland.
Richmond.
Atlanta. Chicago.
St.
Louis.
Minneapolis.
Kansas
City.
Dallas.
San
Francisco. Total.
1919.
Apr. 25..
May 29..
June 27..
July 25..
Aug. 29..
Sept. 26..
Oct. 3 1 . .
Nov. 28..
Dec. 26..
7,159
858
5,062
-40,474
-69,899
- 9,662
-25,571
-22,394
-48,579
-39,432
-31, 702
-45, 864
-96, 440
-58,201
- 1,021
-11,923
+ 20,414
+ 22,126
+20,366
+17,130
+48,368
+ 66,911
+ 60,655
+ 84,396
+27, 654
+16,575
-75,649
-55,308
-34,096
+92,683
+82,054
+56,567
+ 6,474
-40, 923
-13,404
-61,362
-24,502
- 6;917
-29,496
-35, 533
-57,967
-34, 900
-20, 930
-18,295
-23, 448
-23,500
-27,615
+
+
+
+
+
20,254
35,533
23,750
10,012
419
-25,000
-45,000
-55,000
-50,000
-29,725
-25,000
+ 10,042
+ 23,269 + 5,C
+ 12,265 + 5,0
- 8,900
- 5,500
+ 5,065
+54,670
+ 52,332
+64,122
+ 54,900
+33, 930
+ 60,195
+48, 980
+ 67,871
+ 60,090
+
+
+
+
+
187
10,000
9,735
5,000
8,250
+ 18,071 -10,000
+ 15,000
+ 25,000
+ 25,000
+ 11,475 + 10,013
+10,000 + 14,725
- 3,000
-18,000
+ 5,014
+ 32,564
+29,022
-26,468
-32,332
- 9,640
+ 10,005
- 3,195
+ 10,078
+32,123
+ 14,603
+26,429
+27,456
+38, 567
+ 29,000
+ 16,977
. + 10,776
+ 11,547
+ 15,265
107,785
139, 294
150,063
133,479
93,087
101,897
74,812
160,414
158,910
+ 10,050
+ 1,871
-15,871
-13,865
-12,958
-22,902
-22,247
-41,175
-44,895
-28,404
-29,086
+ 14,950
+ 23,500
+ 7,825
- 3,000
-13,000
- 5,000
-26,716
-34,540
-37,419
-32,828
- 2 6 , 600
-27,711
+ 3,408
+ 3,408
+ 7,081
- 7,687
+ 2,371
+ 392
+ 19,092
+ 15,672
+ 8,209
+
93
+ 6,917
+ 6,917
114,460
106,156
96,480
163,084
148,552
126,167
148,704
215,455
250,296
260,440
168,435
122,174
d
O
w
1920.
Jan. 30
Feb.27
Mar.26
Apr. 30
May 28
June 25
July 30
Aug. 27
Sept. 24
Oct.29
Nov. 26
Dec. 30
-32,790 + 27,521
-38,925 + 15,601
-35,555
38, 304
-20, 709 + 48,275
+ 10,014
+ 11,812
+ 35,812
+37, 201
+ 21,758
+ 17,109
+ 43,761
+ 52,078
64, 756
+ 121,060
+145,620
+138, 750
+ 112,106
+ 81,578
+ 51,918
+ 33,410
-15,000 + 3,351 + 7,605
-38,471
-24, 850
-25, 000 - 8,500 -18,995
-24,904 - 7,960 -24,950
-23,133 -21,607 -10,001
-25,000 -31,963 - 8,001
-24,620 -45,533 -29,800
-14,275 -36,122 - 7,050
-10,000 -40, 216
-10,000 - 3 3 , 659
- 5,000
+ 15,000
+ 16,187
+ 1,663
+ 4,000
-11,829 + 10,029
-41,385 — 11,111
-50,060 -19,132
—26,723 -23,672
-30,607 -13,738
- 3 2 , 434 -20,347
- 3 6 , 996 -21,349
-37,305 -26,603
-12,793 -25,860
-14,801
w
o
145
CONDITION OF FEDERAL RESERVE BANKS.
INTERDISTRICTACCOMMODATION
NET AMOUNT OFACCOMMODATION RECEIVED FROM
OR EXTENDED TO OTHER FEDERAL RESERVE BANKS,
APRIL 1919 TO DECEMBER I 820
END-OE-MONTfi HOLDINGS, IN MILLIONS OF DO LIARS.
: J?ccom,rrwda£w?i Jtecewed,.
MIUJOHS
MILLIONS
KXJ
100
80
60
40
20
o
20
40
60
80
W
\
\
\
\
\
SO
60
dO
20
0
20
40
60
80
XX)
>
j
Minions
I
KXJ
80
60
40
20
0
20
40
60
80
1
\
\
/
/
/
120
L
A
s
j
too
11
80
60
40
20
0
30
40
60
80
W
120
180
J60
MO
120
DO
80
60
40
20 / s
O
20
20
0
20
40
60
2O
0
20
40
60
s
\
/
—
\
>
80
60
40
20
0
20
40
40
20
0
30
40
60
80
40
20
0
2O
30
0
20
40
60
s
•%
r
s/
/
/
v
s
s
DALLAS
\
7
too
m
J60
m
\
\
120
XX)
80
60
40
3D
0
20
•«.
*LA IS >
1
30
0
30
40
60
&)
*
V
/
=
20
0
20
40
eo
$0
\
s*
KAN5ASCITr
M/IWEAFOLIS
40
20
0
2O
40
\
ST. LOUIS
CHICAGO
40
20
0
3D
40
4
/
ATLAHTA
RICHMOND
30
60
40
20
0
20
40
1
A
\
\
\
\
X/
Oil
/
\
J
1*
PHILADELPHIA
20
0
20
40
60
/
r1
(lEiVWRK
I
\
80
60
40
20
0
20
40
60
80
1\
BOSTOIS
80
60
40
30
0
20
40
60
80
too
MILUOKS
KXJ
20
0
20
60
40
20
0
20
SJ
j
1
SAN ERAIICISCO
30
0
3D
60
60
40
20
0
20
N o . 18.—Condition of each Federal Reserve Bank on Dec. 31, 1920.
[Detailedfiguresin roman type represent items shown on the balance sheets of the banks before closing of books on Dec. 31,1920; figures in bold face indicate results of consolidation according to methods used in the compilation of the Board's weekly statement.]
[In thousands of dollars.]
RESOURCES.
Total.
Gold bullion and coin
Gold certificates
Gold and gold certificates
Gold settlement fund—Federal Re=
serve Board
Gold with foreign agencies
Cleveland.
Richmond.
Atlanta.
50,765
81,958
132,723
5,212
875
6,087
8,179
2,729
10,908
3,619
2,083
5,702
357,278
40,116
241
45,902
1,211
50,352
264
77,015
270
20,429
162
52,158
134,747
179,836
254,576
39,000
56,703
138,791
8,902
88,193
177, 635
15,622
26,293
53, 699
16,305
60,710
6,797
10,298
9,190
46
2,579
11,815
473,412
51, 998
71, 309
21,452
144,759
204,396
776
117
100
993
281,450
2,185
5
38
2,228
86,789
354
1
8
363
87,313
454
43
2,253,700
217,516
618,171
205,389
283,678
878,015
54,1G6
329,174
75,782
276,4G8
24,059
125,578
1,154,483
78,225
454,752
3,300
622,478
Total gold reserves
Legal-tender notes
Silver certificates
Silver coin
Legal=tender notes, silver, etc.
2,062,786
76, 891
80, 355
33,008
190,914
Philadelphia.
9,602
2,199
11,801
1,277,875
162,433
Total cash reserves.
New
York.
137,045
124,855
261,900
Total gold held by banks
Gold with Federal Reserve agent.
Gold redemption fund
Member banks' collateral notes, seoured
by Government war obligations
Other discounted bills, secured by Government war obligations
Bills discounted, secured by Govern*
ment war obligations
Member banks' collateral notes, secured
otherwise than by Government war
obligations
Boston,
17,692
18,796
205,701
Chicago. St. Louis.
Minneapolis.
Kansas
City.
Dallas.
Francisco.
1,725
7,019
8,744
17,280
11,736
29,016
3,037
2,092
5,129
2,814
6,316
9,130
3,286
739
4,025
5,634
4,373
10,007
25,892
2,736
28, 628
7,442
119 I
36,048
393
21,763
155
8,456
89
23,957
158
2,074
86
23,724
152
65,457
198,162
53,461
27,047
49,337
6,404
17,675
25,905
3,098
28,140
40,769
5,255
12,167
24,484
4,431
52,504
119,060
10,369
82,788
1,911
1,586
2,591
6,088
46,678
126
12
112
250
74,164
1,756
1,530
2,027
297,080
6,432
6,381
1,627
14,440
60
517
2,333
41,082
1,317
526
2,613
4,456
181,933
392
269
501
1,162
87,152
89,340
311,520
88,876
46,928
76,497
45,538
183,095
88,079
40,490
48,442
116,300
36,308
11,384
21,928
12,914
43,048
39,865
11,931
5,465
12,998
24,128
7,469
5,709
7,778
2,990
8,498
115,647
100,010
45,955
61,440
140,428
43,777
17,093
29,706
15,904
51,546
50
292
850
264
3,299
45
9,346
749
873
1,924
Other discounted bills, secured otherwise
than by Government war obligations... 1,515,218
1,532,910
Bills discounted—All other
260,406
Bills bought in open market
Total bills on hand
Liberty bonds
Other United States bonds
United States Government bonds
United States Victory notes
one-year certificates of indebtedness
(Pittman Act)
Other certificates oi indebtedness.
United States certificates of indebtedness
Total earning assets
114,128
116,052
46,798
501,304
64
4,426
4,490
116,132
82,967
112,512
70,944
1,153
1,153
116
29
8,838
8,867
1
3,979
3,975
4
214,396
204
1,884
2,088
16,664
8
39,612
15,568
455
8,480
12,820
1
8,300
10,880
150
12,262
16,672
39,612
16,023
8,480
12,821
8,300
11,030
253,197
134,017
152,960
545,406
133,308
91,563
134,201
83,223
227,514
1,649
1,447
541
2,379
541
668
1,041
1,639
377
1,725
6
937
1,068
572
233
234
144
299
11
1,219
7,329
50,003
269
1,723
7,323
20,270
78
6,515
15
62,803
549
704
3,064
33,775
71
1,063
6,843
9,985
1,038
101,041
101,333
27,211
68,668
69,518
5,048
70,897
71,161
3,571
331,836
335,135
25,741
71,111
2,947,799
2,009
24,306
26,311
73
194,046
985,179
213
1,255
1,468
50
185,072
228,554
419
415
834
10
120,521
82
1,152
1,234
136,172
259,375
1,270
21,436
83
59,276
30,280
181
23,799
390
12,260
2
260,645
21,519
59,666
30,461
23,799
216,109 1,046,363
216,967
500
3,234,828
10
529
539
5
2,700
6,049
831
Banks
Federal Reserve notes of other Federal
Reserve Banks
Unassorted currency
Transit items.
1 302
53,920
54,793
247
56,686
56,736
12,689
17,860
1,120
Domestic transfers purchased
Uncollected items and other deduc=
tions from gross deposits
Five per cent redemption fund
against Federal Reserve bank notes.
79,886
80,635
2,171
416,687
416,687
113,740
Bank premises
...
. . .
Due from foreign banks
National bank notes
..
. . .
Bank notes of other Federal Reserve
Checks and other cash items
Deferred items—Treasurer United States..
Unmatured Government coupons
Exchan ges for clearing house
1,199
55,215
64,561
1,313
95,143
95,143
20,678
4,378
1,120
885
549
1,434
5
31,131
51,352
543,785
23,343
2
2
46,006
23,649
645
8,503
44,436
211
727,741
57,623
141,346
67,749
12,588
1,072
2,766
1,300
14,308
101,147
14,656
2
C1)
103
10
113
3
10,113
1,450
4,219
53,073
16
6,486
8,418
4,723
2,268
73,629
59,875
31,406
88,997
39,225
1,240
601
561
1,779
623
i Less than -1500.
116
56
11
85
9,240
46,675
5,263
1,001
3,024
4,030
2,851
34,467
1,006
422
358
17,145
439
248
4,426
50,213
157
1,122
375
646
7,066
4,637
21,605
55,653
42,287
48,346
480
915
586
665
29,778
628
1
1
2,997
71,156
1,875
No. 18.—Condition of each Federal Reserve Bank on Dec. SI, 1920—Continued.
[Detailedfiguresin roman type represent items shown on the balance sheets of the banks before closing of books on Dec. 31,1920; figures in bold face indicate results of consolidation according to methods used in the compilation of the Board's weekly statement.]
[In thousands of dollars. ]
RESOURCES—Continued.
New
York.
Boston.
Total.
Philadel
phia.
Cleveland.
Richm o n d .
Atlanta.
Chicago.
St.
Louis
Kansas
City.
M i n n e apolis.
1
Other resources:
War-loan expenses .
Fiscal agency—general expenses
Certificates of indebtedness—disbursements
Treasury Department special account .
Cost of Federal Reserve currency
Furniture and equipment
Deferred charges
Difference account
United States Liberty bonds held
against participation certificates
Real estate mortgage
Cafeteria future supplies
Claims recoverable..
Loans and discounts—suspense account
Sundry losses
Nickels and cents
OverdraftsUnited States Government
Allother
Interest accrued on United States
securities
All other resources
Total resources.
010
32
87
38
225
82
36
40
85
71
11
32
11
99
24
g
11
104
89
189
5
O
104
89
52
0)
8
49
1
1
36
37
4
1
3
0)
0)
0)
4
9
0)
230
52
71
11
0)
3
2
34
4
w
1
155
481
2
28,021
0)
1
0)
30
246
220
0)
61
237
8
41
9
28,021
0)
2,040
61
393
149
1
36,038
219
470
29,454
314
359
240
384
128
566
159
385
425
989
6,282,755
495,490
,842,478
492,264
613,777
283,658
275,193
951,070
2,770
S a n
Francisco.
Dallas.
1
1
C1)
C1)
2°>7
8
1,244
112
OO
606
2
185
530
263,103
237
98
1
1.099
86
177
100
249
350
725
125
1,577
161,493
268,657
173,998
461,574
I
LIABILITIES.
Capital paid in by members
Capital paid in by applicants for membership
Capital paid in
Surplus .
Government deposits
Due to members—reserve account
Government transit items
United States Treasurer—suspense account
...
Coin deposited for redemption
Currency deposited for redemption
All other transit items..
Domestic transfers sold.
Deferred availability items
Foreign Government credits
Foreign banks
Nonmembers—clearing accounts
Cashiers' checks
Federal Keserve exchange drafts
Federal Reserve transfer drafts
Suspense account—5 per cent redemption
fund, national banks. .
Suspense credits
Other deposits, including foreign
Government credits
Total gross deposits
Federal Reserve notes outstanding
Less:
Held by bank and branches
Forwarded for redemption
Total deductions.
99,761
7,718
26,373
8,485
10,703
5,269
4,051
13,913
4,365
3,461
4,455
4,099
6,869
99,821
164,745
7,718
12,351
26,373
8,485
5,269
4,365
13,069
2
4,053
7,050
13,913
51,308
10,703
13,712
23,917
5,884
3,461
5,178
4,455
8,395
4,099
4,152
58
6,927
11,662
24,712
1,780,449
2,088
114,441
4,562
150,347
643
2,695
2,138
249,771
4,267
2,618
66,903
1,135
1,031
43,520
839
2,669
57,085
1,257
1,579
49,172
1,133
74,318
1,660
46,995
2,814
114,452
1,570
32,386
1
33,957
60
16,919
80
14
37
500,651
401
518,102
702,431
703
858
111,014
5,372
8,067
80
14
37
41,712
92,530
41,763
93,319
45,552
400
51,324
53,910
38,945
19,227
51,644
32,897
16,653
47,630
27,559
54,553
40,202
20,360
55,911
34,032
17,492
47,630
27,559
320
328
196
144
17
142
476
637
707
22
26
188
108
134
290
192
1
486
104
0)
(l)
5,494
9,220
7,870
207
82
292
1
306
38
46
3?4
3
149
3
2,962
5,569
3,602
869
83
115
11
87
5
468
62
0)
142
0)
184
2,395
1,062
48
10
175
23,200
835
12,133
1,447
454
288
303
1,868
716
532
679
246
3, 699
2,346,463
159,127
807,883
164,643
209,916
100,270
71,414
309, 688
104,269
62,575
125,296
76,460
154,922
3,735,731
301,554 1,036,354
291,299
378,693
161,034
179,760
634,237
155,391
81,386
118,125
84,754
313,144
374,805
24,585
9,824
2,950
167,855
1,018
11,521
1,456
27,145
2,597
4,908
957
5,844
510
82,189
6,653
18,021
1,585
744
1,144
5,634
913
4,269
1,032
36,911
3,770
399,450
12,774
168,873
12,977
29,742
5,8C5
6,354
88,842
19,606
1,888
6,547
5,301
40,681
L Less t h a n $500.
2
Credit b a l a n c e after closing of books, $11,298,000.
No. 18.—Condition of each Federal Reserve Bank on Dec. SI, 1920—Continued.
[Detailedfiguresin roman type represent items shown on the balance sheets of the banks before closing of books on Dec. 31,1920; figures in bold face indicate results of consolidation according to methods used in the compilation of the Board's weekly statement.]
[In thousands of dollars.]
LIABILITIES—Continued.
Federal Reserve notes in actual circu*
lation
Federal Reserve bank notes outstanding..
Less: Held by bank and branches
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
Interest earned on bill of lading
drafts
Deficient reserve penalties (including interest)
Domestic transfers bought and
sold net
Commissions
Profit on United States securities.
Income and expense—real estate..
Rental account
Miscellaneous
Gross earnings
Less current expenses
Current net earnings
Total.
Boston.
New
York.
3,336,281
239,989
23,348
288,780
20,623
269
216,641
Minneapolis.
Kansas
135,785
79,498
9,609
122
7,829
174
111,578
14,855
634
79,453
8,745
1,644
272,463
9,088
931
38,856
9,487
7,655
14,221
7,101
8,157
165
1,063
240
179
242
6
458
3,230
189
3,824
85
15,170
1,234
3,561
60
2,776
54
3,495
89
2,227
20
4,959
1,661
13S
161
491
197
87
232
131
158
153
123
76
Philadelphia.
Cleveland.
Richmond.
867,481
55,327
16,494
278,322
22,792
191
348,951
23,209
474
155,169
11,938
472
173,406
16,170
995
545,395
39,804
948
20,354
38,833
22,601
22,735
11,466
15,175
6,518
456
2,354
573
531
251
84,730
9,297
5,565
855
28,718
3,226
5,002
454
6,203
1,370
3,621
316
994
391
325
Atlanta.
Chicago. St. Louis.
20
64
35
540
15
107
12
270
Dallas.
San
Francisco.
3
3
930
City.
54
117
59
103
59
213
59
67
47
219
1
12
2
0)
2
107
16
80
30
18
16
13
39
17
12
7
14
6
14
99,525
17,486
6,784
33,189
5,912
3,894
3,053
3,983
2,726
6,872
1,823
913
4,142
756
17,251
3,750
8,029
1,444
3,690
1,149
2,413
1,508
628
1,088
842
1,172
82,039
5,635
29,439
4,089
6,585
2,777
3,386
14,838
2,386
2,425
2,895
1,884
5,700
Or
O
Deduct—dividends paid in current period
2,362
Net earnings available for dividends, surplus, and franchise
tax
Reserved for franchise tax
Reserved for taxes other than franchise
tax
Reserved for taxes on Federal Reserve
Bank notes
Reserved for sundry expenses
Reserved against undetermined liabilities
Reserved for adjustments
Depreciation reserve on United States
bonds...
Self-insurance reserve
Gold in transit or in custody—withheld for expense account
Suspense account.
Deficient reserve penalties—suspense..
Participation certificates — Liberty
loan bonds
.
. . .
Proceeds of sale of war loan office
equipment
Victory Liberty Loan Association
Difference account..
Accrued dividends unpaid
Unearned discount
All other liabilities
Total liabilities.
79,677
0)
5,635
14,962
763
252
308
154
118
410
129
100
133
28,676
14,962
3,837
6,277
2,623
3,268
14,428
2,257
2,325
2,762
71
28
29
19
130
1
41
210
94
918
94
430
293
368
200
52
30
53
155
0)
25
1,884
5,705
22
43
23
1
93
368
1,279
262
85
201
262
326
326
230
4
230
16
14
145
89
5
14
103
173
54
84
241
•85
4
0)
2
0)
C1)
3
3
26
0)
0)
0)
26
0)
13,618
118,804
6,282,755
0)
2,851
533
792
7,760
595
4,095
3,524
19,301
548
5,144
477
3,417
484
50,600
3,313
3,126
1,213
4,712
2,733
1,172
7,443
495,490 1,842,478
492,264
613,777
283,658
275,193
951,070
263,103
161,493
268,657
173,998
461,574
943
7,160
i Less than $500.
2 Interest received.
486
No. 19.—Net
its, Federal Reserve note circulation, required reserves, excess reserves, and reserve percentages for each Friday in 1920.
Or
[In thousands of dollars.]
Liability o n -
Date.
Net
deposits.
Reserves required.
Federal
Deposits
Keserye and
notes
notes in combined.
circulation.
On net
deposits
(35 per
cent).
On Federal
Reserve
notes (40
per cent).
Total.
1,199,597
1,165,747
1,139,952
1,137,691
1,140,378
1,156,710
1,183,635
1,190,848
1,207,994
1,212,004
1,215,900
1,218,853
1,219,216
1,230,929
1,232,087
1,229,477
1,227,323.
1,229,822
1,236,938
1,233,294
1,234,081
1,242,808
1,847,493
1,766,309
1,776,623
1,773,936
1,772,652
1,774,643
1,809,171
1,815,877
1,867,596
1,839,342
1,845,239
1,809,664
1,839, 732
1,851,923
1,841,836
1,842,913
1,848,078
1,864,278
1,857, 943
1,877,068
1,858,614
1,870,862
Total cash
reserve
held.
Ratio of
totalcash
Gold in reserves
to
excess of net
deposit
required
and
Fedreserves
eral Re(free
serve note
gold).
liabilities
combined.
1920.
Jan.
2
9
Feb.
Mar.
Apr.
May
16
23
30
6
13
20
27
5
12
19
26
2
9
16
23
30
7
14
21
28
1,851,133
1,715,892
1,819,061
1,817,843
1,806,496
1,765,524
1,787,245
1,785,797
1,884,576
1,792,393
1,798,110
1,688,032
1,772,904
1,774,269
1,742,139
1,752,675
1,773,587
1,812, 732
1,774,297
1,839,355
1,784,379
1,794,440
2,998,992
2,914,368
2,849,879
2,844,227
2,850,944
2,891,775
2,959,087
2,977,124
3,019,984
3,030,010
3,039,750
3,047,133
3,048,039
3,077,323
3,080,217
3,073,693
3,068,307
3,074,555
3,092,344
3,083,234
3,085,202
3,107,021
4,850,125
4,630,260
4,668,940
4,662,070
4,657,440
4,657,299
4,746,332
4,762,921
4,904,560
4,822,403
4,837,860
4,735,165
4,820,943
4,851,592
4,822,356
4,826,368
4,841,894
4,887,287
4,866,641
4,922,589
4,869,581
4,901,461
647,896
600,562
636,671
636,245
632,274
617,933
625,536
625,029
659,602
627,338
629,339
590,811
620,516
620,994
609,749
613,436
620, 755
634,456
621,005
643,774
624,533
628,054
2,121,272
2,102,099
2,104,281
2,087,896
2,073,933
2,054,656
2,052,513
2,035,440
2,083,215
2,054,630
2,056,730
2,060,326
2,057,155
2,080,428
2,087,306
2,087,731
2,083,568
2,070,765
2,076,087
2,078,393
2,079,538
2,092,496
273,779
335, 790
327,658
313,960
301,281
280,013
243,342
219,563
215,619
215,288
211,491
250,662
217,423
228,505
245,470
244,818
235,490
206,487
218,144
201,325
220,924
221,634
Per cent.
43.7
45.4
45.1
44.8
44.5
44.1
43.2
42.7
42.5
42.6
42.5
43.5
42.7
42.9
43.3
43.3
43.0
42.4
42.7
42.2
42.7
42.7
I
I
I
W
o
June 4.
11.
18.
25.
July 2.
9.
16.
23.
30.
Aug. 6.
13.
20.
27.
Sept. 3.
10.
17.
24.
Oct. 1.
8..
15..
22..
29..
Nov. 5..
12..
19..
26..
Dec. 3 . .
10..
17..
23..
1,807,175
1,779,133
1,617,603
1, 722,223
1, 755,996
1,707,869
1,686,941
1,685,644
1,697,245
1,698,489
1,692,450
1,702,316
1,717,867
1,735,088
1,679,417
1,578,287
1,658,464
1,645,836
1,710,176
1,694,130
1,624,646
1,674,553
1,694,923
1,674, 764
1,632, 740
1,623,641
1,667,258
1,662,301
1,542,594
1,549,348
1,604,190
3,127,291
3,112,205
3,104,810
3,116, 718
3,168,814
3,180,948
3,135,893
3,118,205
3,120,138
3,141,861
3,169,181
3,174, 725
3,203,637
3,243,270
3,295,185
3,289,681
3,279,996
3,304,690
3,322,123
3,353,271
3,356,199
3,351,303
3,354,180
3,328,985
3,307,435
3,325,538
3,312,039
3,311,842
3,344,332
3,404,931
3,344,686
4,934,466
4,891,338
4,722,413
4,838,941
4,924,810
4,888,817
4,822,834
4,803,849
4,817,383
4,840,350
4,861,631
4,877,041
4,921,504
4,978,358
4,974,602
4,867,968
4,938,460
4,950,526
5,032,299
5,047,401
4,980,845
5,025,856
5,049,103
5,003,749
4,940,175
4,949,179
4,979,297
4,974,143
4,886,926
4,954,279
4,948,876
632,511
622,697
566,161
602,778
614,599
597, 756
590,430
589,976
594,036
594,471
592,357
595,811
601,251
607,281
587,796
552,400
580,462
576,043
598,563
592,946
568,626
586,095
593,224
586,167
571,459
568,274
583,540
581,805
539,909
542,273
561,467
1,250,916
1,244,882
1,241,924
1,246,687
1,267,525
1,272,379
1,254,357
1,247,281
1,248,057
1,256,746
1,267,675
1,269,892
1,281,454
1,297,308
1,318,074
1,315,872
1,311,998
1,321,876
1,328,849
1,341,308
1,342,480
1,340,519
1,341,672
1,331,594
1,322,974
1,330,215
1,324, 814
1,324,736
1,337,733
1,361,972
1,337,874
1,883,427
1,867,579
1,808,085
1,849,465
1,882,124
1,870,135
1,844,787
1,837,257
1,842,093
1,851,217
1,860,032
1,865, 703
1,882, 705
1,904,589
1,905,870
1,868,272
1,892,460
1,897,919
1,927,412
1,934,254
1,911,106
1,926,614
1,934,896
1,917,761
1,894,433
1,898, 489
1,908,354
1,906,541
1,877,642
1,904,245
1,899,341
2,098,940
2,102,591
2,100,900
2,108,605
2,109,501
2,108,193
2,119,047
2,134,012
2,128,640
2,131, 744
2,132,885
2,121,837
2,127,827
2,117,957
2,131,247
2,133,145
2,151,594
2,165,195
2,158,268
2,154,911
2,157,270
2,168,038
2,169,729
2,180,Oil
2,180,228
2,195,310
2,198,195
2,212,407
2,222,468
2,236,754
2,249,163
215,513
235,012
292,815
259,140
227,377
238,058
274,260
296,755
286,547
280,527
272,853
256,134
245,122
213,368
225,377
264,873
259,134
267,276
230,856
220,657
246,164
241,424
234,833
262,250
285, 795
296,821
289,841
305,866
344,826
332,509
349,822
42.5
43.0
44.5
43.6
42.8
43.1
43.9
44.4
44.2
44.0
43.9
43.5
43.2
42.5
42.8
43.8
43.6
43.7
42.9
42.7
43.3
43.1
43.0
43.6
44.1
44.4
44.1
44.5
45.5
45.1
45.4
O
O
u
B
o
00
154
ANNUAL REPORT FEDERAL RESERVE BOARD.
REQUIRED AND EXCESSRESERVES
DURING 1920
I Gold.SL&erves required, against:
2, CasJvJteserves required
3
1
against
' '
1
1
2400
2300
2200
2/00
2O0Q
I3O0
J800
POO
1600
1500
/400
1300
1200,
1100
1000
900
800
POO
600
500
400
300
200
JOO
0
2400
2300
2200
2100
2000
1300
1800
I?OO
1600
1500
J400
1300
1200
1100
1000
900
800
POO
600
S00
400
300
200
100
o
JAN. FEB. MAR. APR. MAY JUfitJULY AU6. SEPT. OCT. HOV. DEC.
N o , 20,—Cash reserves, total earning assets, net deposits, Federal Reserve note circulation,
and reserve percentages, by months
during
1920 and 1919.
[Average daily figures; amounts in thousands of dollars.]
Month.
Cash reserves.
1919
Total earning assets.
Net deposits.
Federal Reserve notes
in circulation.
1920
1919
1920
1919
1920
1919
Reserve percentages
1-K3+4).
1919
O
O
o
January...
February.
March
April
May
June
July
August
September
October...
November.
December.
2,098,498
2,053,422
2,058,293
2,084,077
2,078,822
2,102,985
2,118,899
2,127,305
2,139,280
2,162,178
2,182,795
2,221,573
,164,167
183,641
202,368
224,948
246,087
248,265
176,779
146,003
157,932
207,386
185,149
149,653
3,043,952
3,154,054
3,211,936
3,191,945
3,255,859
3,209,650
3,200,973
3,233,862
3,329,481
3,390,089
3,375,395
3,313,502
2,213,511
2,225,686
2,318,422
2,341,724
2,391,774
2,323,992
2,478,863
2,442,627
2,471,515
2,709,330
2,907,803
3,034,224
1,789,516
1,796,754
1,782,977
1,770,042
1,810,591
1,747,713
1,706,109
1,699,476
1,664,864
1,681,047
1,667,885
1,622,267
1,618,024
1,692,770
1,768,256
1,734,281
1,803,508
1,770,114
1,795,100
1,748,254
1,657,678
1,810,312
1,853,702
1,744,217
2,887,846
2,946,863
3,040,440
3,071,754
3,089,737
3,113,949
3,143,465
3,165,222
3,275,535
3,336,768
3,327,632
3,342,520
2,540,642
2,462,941
2,503,350
2,547,535
2,534,112
2,500,969
2,523,960
2,544,357
2,627,295
2,738,394
2,812,247
2,955,476
44.9
43.3
42.7
43.0
42.4
43.3
43.7
43.7
43.3
43.1
43.7
44.7
52.0
52.5
51.6
52.0
51.8
52.6
50.4
50.0
50.4
48.5
46.8
45.7
Year
2,119,278
2,190,949
3,242,684
2,487,483
1,728,067
1,750,106
3,145,659
2,608,638
43.5
50.3
I—I
o
o
N o . 21.—Average daily holdings of discounted paper, by months during 1920.
[In thousands of dollars.]
Federal
Reserve Bank. January. February. March.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco..
158,891
769,899
200,182
143,939
102,045
95,344
282,590
87,466
67,067
90,496
57,878
86,991
176,057
796,204
203,427
155,771
101,482
95,394
344,155
100,777
69,221
89,796
65,040
101,653
183,619
786,551
208,398
168,331
104,593
104,432
383,483
107,452
63,017
100,973
61,713
113,975
April.
168,211
788,359
206,740
173,477
94,259
104,878
418,929
108,473
69,886
109,548
70,813
126,803
May.
June.
July.
164,505
834,779
212,325
172,014
95,947
117,322
419,420
113,035
75,560
110,515
74,924
147,205
158,915
788,273
205,215
161,771
97,384
114,709
427,021
106,641
73,248
109,516
73,807
144,522
155,961
836,176
180,393
169,113
101,631
115,109
439,987
109,391
77,561
108,956
73,590
151,176
August.
173,312
887,809
175,459
177,957
103,775
117,059
436,806
112,398
81,019
107,119
73,306
159,094
Septem- October. November.
ber.
181,126
869,682
178,134
211,611
109,407
121,760
451,341
114,561
83,596
110,206
76,237
169,391
172,630
950,582
174,146
218,433
110,778
124,813
468,594
117,730
85,402
110,926
77,082
170,939
174,366
938,688
171,018
209,429
114,444
143,172
466,219
118,933
84,373
114,200
77,466
164,149
December.
171,516
917,872
166,911
195,513
113,387
136,636
466,072
116,889
82,807
114,113
73,473
175,171
Year
1920.
Year
1919.
Year
1918.
Year
1917.
169,800
847,434
19Q, 122
179,810
104,111
115,940
417,189
109,497
76,082
106,405
71,276
142,718
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
51,755
33,464
55,733
32,084
57,413
12,813
78,622
9,924
9,531
10,720
5,812
24,407
9,314
7,371
10,636
4,667
6,468
o
w
H
Total: 1920. 2,142,788 2,298,977 2,386,537 2,440,376 2,537,551 2,461,022 2,519,044 2,605,113 2,677,052 2,782,055 2,776,457 2,730,360 2,530,384
1919. 1,734,655 1,763,226 1,861,532 1,919,461 1,973,926 1,842,112 1,867,920 1,801,887 1,777,334 2,073,416 2,145,631 2,157,021
938,442 1,165,649 1,337,701 1,603,153 1,709,766 1,768,746 1,749,156
567,475
902,102
769,259
1918.
611,235
531,541
151,234
147,797
182,439
134,988
18,191
42,710
313,771
568,352
664,154
24,903
1917.
17,900
20,877
1,908,198
1,140,053
190,285
w
o
No. 22.—Holdings of discounted bills on Dec. SO, 1920, distributed by maturities.
[In thousands of dollars.]
Maturity.
Federal Reserve Bank.
Total.
Within 15
days.
16 to 30
days.
31 to 60
days.
61 to 90
days.
After 90
days.
J
Boston..
New York
Philadelphia.
Cleveland
Richmond
Atlanta.
Chicago.
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco
178,543
904,239
173,563
199,333
112,886
134,149
475,869
114,218
81,669
111, 094
68,885
164,686
96,985
732,257
135,107
123,644
58,009
77,421
177,338
58,790
34,687
43,549
29,221
65,877
22,964
50,036
8,633
33,404
16,777
14,825
53,565
18,154
12,877
15,183
9,019
24,969
33,010
89,242
20,011
30,371
25,592
22,946
97,762
25,470
18,416
16,602
12,138
39,116
25,584
32,704
9,805
11,702
12,206
15,463
133,434
10,465
11,746
14,502
7,927
26,081
7
212
302
3,494
13,770
1,339
3,943
21,258
10,580
8,643
Total...
2,719,134
1,632,885
280,406
430,676
311,619
63,548
2
9
o
s
s
W
No. 23,—Holdings of discounted bills on the last Friday of each month during 1920, distributed by maturities.
Or
00
[In thousands of dollars.]
Maturity.
Date.
Total.
Within 15
days.
16 to 30
days.
31 to 60
days.
61 to 90
days.
Over 90
days.
1920.
Jan. 30
......
Feb. 27
Mar. 26
Apr. 30
May 28
June 25
July 30
Aug. 27
Sept. 24
Oct. 29
Nov. 26
Dec. 30
Dec. 26,1919
Dec. 27,1918
Dec. 28,1917
!•.
2,174,357
2,453,511
2,449,230
2,535,071
2,519,431
2,431,794
2,491,630
2,667,127
2,704,464
2,801,297
2,735,400
2,719,134
385,117
570,405
425,695
496,952
460,744
283,470
464,290
581,792
483,052
591,408
650,801
632,885
206,267
205,442
294,355
262,992
259,574
335,105
225,623
247,986
352,199
300,671
296,096
280,406
309,576
433,705
464,333
423,922
473,116
469,460
426,928
491,886
506,078
512,062
501,627
430,676
255,093
228,496
245,221
312,610
264,006
259,993
304,257
301,240
336,732
368,446
235,181
311,619
18,304
15,463
19,626
38,595
61,991
83,766
70,532
44,223
26,403
28,710
51,695
63,548
2,194,878
1,702,941
680,706
1,484,790
1,149,955
244,890
266,108
57,367
292,715
166,877
175,006
152,125
93,062
83,974
26,940
355,373
I
o
s
20,358
w
o
N o . 24.—Holdings of discounted bills secured by Liberty bonds, Victory notes, and certificates of indebtedness on the last Friday of each month during 1920.
[In thousands of dollars.]
Secured b y -
Date.
Liberty bonds.
Total (all
classes).
Total.
Victory notes.
Member Customers'
bank collat- bills and
notes.
eral notes.
Total.
Certificates of indebtedness.
Customers5
Member
bank collat- bills and
notes.
eral notes.
Total.
Member
Customers'
bank collat- bills and
eral notes.
notes.
a
o
I
H
Jan. 30.,
Feb. 27.
Mar. 26.
Apr. 30.
May 28.
June 25.
July30w
Aug. 27.
Sept. 24
Oct. 29.
Nov. 26.
Dec. 30.
457,892
572,980
441,015
465,320
447,962
277,980
241,017
314,830
220,423
203,905
192,425
141,036
667,886
756,833
742,864
690,875
674,100
617,503
591,964
666,684
647,251
641,552
630,254
648,352
438,081
466,555
481,832
455,133
438,992
381,804
390,197
451,701
429,082
446,307
442,897
460,376
229,805
290,278
261,032
235,742
235,108
235,699
201,767
214,983
218,169
195,245
187,357
187,976
216,119
247,450
276,954
295,575
275,828
292,536
302,255
301,458
304,973
322,474
318,233
304,686
130,937
187,966
184,631
187,959
190,809
213,351
226,904
224,963
232,962
243,674
234,009
227,669
85,182
59,484
92,323
107,616
85,019
79,185
75,351
76,495
72,011
78,800
84,224
77,017
573,887
568,697
421,197
478,870
498,034
367,941
346,798
346,688
268,199
239,879
243,938
187,998
571,185
564,956
415,448
470,384
491,655
364,127
341,858
340,863
263,029
231,193
236,571
181,465
2,702
3,741
5,749
8,486
6,379
3,814
4,940
5,825
5,170
8,686
7,367
6,533
o
N o . 25,—Holdings of discounted bills on December 30, 1920, distributed by classes.
[In thousands of dollars.]
Federal Reserve Bank.
Total (all
classes).
Boston
New York....
Philadelphia..
Cleveland
Richmond—
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco
178,543
904,239
173,563
199,333
112,886
134,149
475,869
114,218
Total...
Member bank collateral notes.
Customers'
paper
secured byCommercial
Govern- Secured bypaper n. e. s.
ment war Govern- Otherwise
obligations. ment war secured.
obligations.
68,885
164,686
24,998
7,517
5,709
7,808
3,029
7,988
54,745
322,264
76,080
87,330
37,874
48,258
117,625
37,190
12,297
22,204
12,008
41,635
2,719,134
271,526
869,510
81,669
111,094
23,996
123,662
39,597
8,094
5,414
13,714
99,620
444,845
57,069
97,744
57,350
Agricultural
paper.
1,852
78,727
257
388
735
9,164
15,497
52,695
3,259
14,527
14,285
14,632
17,706
17,907
1,274,606
143,145
50
242
935
294
4,704
45
8,272
749
764
52,567
270,377
62,169
1,277
31,355
21,506
Live-stock Trade ac- Bankers'acceptances. ceptances.
paper.
128
1,800
158
87
1,335
229
3,522
2,062
2,256
4,534
1,518
54
11,411
150
1,508
228
1,637
39,370
32,555
16,619
12,034
217
2,109
268
2,784
1,960
103,795
21,427
17,218
29
59
No. 26.—Holdings of discounted bills on the last Friday of each month during 1920, distributed by classes.
[In thousands of dollars.]
Last Friday i n -
Total (all
Member bank collateral
notes.
Customers'
paper
Commercial
secured by
Secured by
Governpaper n. e. s.
ment war Government Otherwise
obligations.
war
secured.
obligations.
Agricultural
paper.
Live-stock Trade ac- Bankers'acceptances. ceptances.
paper.
H
O
1920.
January
February
March
April
May
June
July
August
September
October
November
December
2,174,357
2,453,511
2,449,230
2,535,071
2,519,431
2,431,794
2,491,630
2,667,127
2,704,464
2,801,297
2,735,400
2,719,134
317,688
353,504
359,106
351,845
326,473
315,835
281,766
297,442
295,373
282,733
278,946
271,526
140,204
219,476
081,909
113,475
121,489
962,145
959,251
1,017,388
925,050
921,172
913,479
869,510
6,427
3,744
6,248
4,130
3,154
2,923
3,166
3,819
8,877
3,649
7,299
17,907
608,283
752,006
855,600
887,051
863,804
937,645
1,015,599
1,103,711
1,220,588
1,318,400
1,260,326
1,274,606
23,212
30,125
29,321
44,389
63,537
83,193
106,611
117,050
120,998
131,528
136,315
143,145
33,693
37,070
45,344
61,993
77,154
84,845
95,909
99,228
103,426
109,121
105,246
103,795
24,886
18,508
20,813
23,937
21,979
20,034
19,498
19,476
22,080
23,155
20,961
21,427
19,964
39,078
50,889
48,251
41,841
25,174
9,830
9,013
8,072
11,539
12,828
17,218
December, 1919
December, 1918
2,194,878
1,702,938
352,589
362,840
1,157,765
1,037,348
8,255
21,615
576,025
208,431
24,825
29,384
26,243
27,335
33,697
15,985
15,479
O
O
tzj
O
C0
1
w
w
N o . 27,—Average daily holdings of purchased bills, by months during 1920.
to
[In thousands of dollars.]
Federal Reserve Bank.
Boston
New York.
Philadelphia...
Cleveland
Richmond
Atlanta
,
Chicago
St. Louis
Minneapolis—
Kansas City
Dallas
San Francisco..
Total: 1920.
1919.
1918.
1917.
January.
February.
March.
April.
May.
June.
July.
SepAugust. tember.
32,170 28,548 16,283 23,399 33,174 31,900 34,004 21,682
201,306 208,504 210,929 154,852 167,366 183,359 150,513 116,083
9,428 12,891
5,704
2,572
7,330
3,670
1,965
6,673
64,168 73,589 65,402 58,92G 60,582 55,713 53,823 59,878
5,740
8,865
6,977
11,782 10,213 10,142 11,358 10,603
3,875
7,792
4,982
11,462 15,257 11,398
3,065
6,142
85,060 72,782 65,029 60,448 54,448 54,610 48,959 43,029
18,602 10,060 10,458
3,046
2,452
4,659
2,801
3,637
3,400
5,824
8,921
4,827
1,747
4,246
5,438
4,039
2,665
766
13,210
9,333
649
3,927
3,999
1,773
575
1,532
1,604
708
729
1,380
1,269
5,839
116,474 105,064 75,076 86,783 71,752 49,633 47,593 53,001
575,667
280,732
265,590
111,575
546, 458 481,238 419,746 416,520 401,184
276,087 262,787 208,905 189,768 246,158
289,072 318,778 311,984 278,464 238,507
117,865 99,026 78,812 99,517 164,355
363,621
362,298
209,174
198,703
325,461
371,091
217,109
162,252
October.
Novem- Decem-
27,779
96,822
15,319
47,820
7,401
1,624
46,144
1,759
1,159
3,613
626
63,798
35,836
85,859
17,715
45,563
5,923
2,377
45,930
1,378
1,351
2,781
897
58,371
27,605
88,757
20,890
36,992
5,542
2,277
35,540
1,596
1,431
2,179
557
55,155
313,864
353,936
249,751
167,403
303,981
340,189
360,451
178,680
278,521
455,057
378,036
195,635
Year
1920.
19,977 27,692
94,124 146,371
9,810
13,487
27,068 54,067
8,320
5,408
6,093
2,914
24,842 53,003
5,154
1,430
3,648
1,363
3,888
1,885
1,334
223
51,280 69,366
Year
1919.
Year
1918.
25,350 22,217
78,282 133,096
1,581 18,375
44,148 27,175
7,687
6,411
8,038
7,200
49,457 29,575
12,939
5,407
20,683
4,851
7,811
3,707
2,366
4,289
66,889 26,119
Year
1917.
15,464
55,315
14,917
15,348
6,235
3,068
12,691
5,384
4,703
5,346
4,074
9,501
o
244,001 388,746
549,959
325,231
344,329
288,422
250,438
152,046
w
o
No. 28.—Holdings of purchased bills on Dec. SO, 1920, distributed by maturities.
[In thousands of dollars.]
Maturity.
Federal Reserve Bank.
Total.
19,532
109,902
12,893
Boston
New York...
Philadelphia
Cleveland...
Richmond..
Atlanta
Chicago
26,581
5,252
3,492
25,961
Within
15 days.
16 to 30
days.
31 to 60
days.
8,729
39,372
3,863
8,748
970
715
4,836
29,869
972
7,355
1,948
668
8,073
5,045
32,745
5,293
7,875
1,509
1,172
7,170
6,185
Maturity.
61 days
to 3
months.
922
7,916
2,765
2,603
825
937
4,533
Federal Reserve Bank.
Total.
1,146
1,413
61 days
to 3
months.
Within
15 days.
16 to 30
days.
31 to 60
days.
560
166
352
191
414
202
5,975
27,122
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
2,017
247
47,266
60
17,310
65
10,152
325
364
1,395
83
13,829
Total...
255,702
87,030
64,745
76,805
70
N o . 29.—Holdings of purchased bills on the last Friday in each month during 1920, distributed by maturities.
[In thousands of dollars.]
Maturity.
Total.
Maturity.
Within
15 days.
16 to 30
days.
31 to 60
days.
61 days
to 3
months.
115,267
135,779
127,119
127,669
113,915
88,629
82,962
72,806
83,588
86,034
70,865
249,208
197,400
171,711
171,583
182,153
152,918
129,544
105,240
69,169
84,273
64,420
61,964
46,011
41,880
30,627
26,092
Total.
16 to 30
days.
31 to 60
days.
Dec. 30
307,624
298,375
247,703
255,702
95,041
115,046
78,663
87,030
77,418
73,439
62, 111
64, 745
106,047
82,560
90,601
76,805
29,118
27,330
16,328
27,122
Dec. 26,1919
Dec. 2 7 , 1 9 1 8 . . . . . . .
Dec. 28. 1917
585,212
303,673
275,366
123,723
104,435
40,321
100,061
73,914
61,177
209,280
104,880
105,132
152,148
20,444
68,736
1920
J a n . 30
Feb. 27
Mar.26
Apr. 30
May28
June 25
July 30
Aug. 27
61 days
to 3
months.
Within
15 da vs.
1920.
561,313
531,367
451,879
407,247
418,600
399,185
345,305
321,965
90,738
117,630
120,799
99,100
110,768
Sept. 24
Oct.29
Nov.26
N o . 30,—Holdings of purchased bills on Bee. 31, 1920, distributed by classes of accepting
institutions.
[In thousands of dollars.]
Trade acceptances.
Bank acceptances.
Federal Reserve Bank.
Total.
Total.
Boston
New York
Philadelphia
Cleveland
Richmond
.
Atlanta
Chicago . . .
. .
St. Louis..
Minneapolis
Kansas City
Dallas
San Francisco..
.
.
..
.
. .
TotalDec. 31 1920
Dec. 31,1919
Dec. 31,1918
Dec. 31,1917
Dec. 31,1916
1
Member
bank.
Nonmember bank
and banking corporations.
Private
banks.
Foreign
bank
branches
and
agencies.
20,678
113,740
12,689
27,211
5,048
3,571
25,741
1,199
1,313
2,171
247
46,798
20,678
112,456
12,689
27,147
5,048
3,571
25,741
1,199
1,313
2,171
247
46,618
17,736
67,622
8,320
14,602
5,048
3,557
22,488
814
1,113
2,171
175
25,741
1,512
19,481
2,406
4,719
453
12,288
1,572
3,551
977
13,065
391
4,275
14
1,614
323
50
989
62
650
8,255
5,990
260,406
574,103
292,197
273,236
125,739
258,878
566,369
285,273
266,853
121,154
169,387
405,339
238,257
227,717
66,803
38,374
65,334
13,187
11,342
36,127
24,905
55,537
20,385
20,137
18,224
Total.
1,284
Domestic.
505
Foreign.
779
64
64
6,632
180
180
26,212
40,159
13,444
7,657
1,528
7,734
6,924
6,383
4,585
§
150
72
505
2,540
2,536
1,023
5,194
4,388
w
o
No. 31.—Holdings of purchased bills at the end of each month in 1920, distributed by classes of accepting institutions.
[In thousands of dollars.]
Trade acceptances.
Bank acceptances.
Month e n d i n g -
Total.
Total.
Member
bank.
Nonmember bank
and banking corporations.
Private
bank.
Foreign
bank
branches
and
agencies.
Total.
Domestic.
Foreign.
O
O
g
1920.
January
February
March
April
May
June
July
August
September
October
November
December
O
562,010
536,205
419,922
407,247
420,192
384,551
346,408
307,104
301,211
299,487
240,622
260,406
555,522
530,825
413,784
396,859
411,427
372,541
339,646
299,960
298,223
296,070
238,516
258,878
383,375
364,940
282,339
270, 808
275,369
255,564
234,368
202,868
200,976
194,908
153,302
169,387
74,726
72,227
56,779
46,292
59,141
56,474
47,112
44,130
41,948
39,636
33,502
38,374
61,218
60,218
51,012
48,549
47,448
38,647
36,087
31,225
29,788
33,662
26,010
24,905
36,203
33,440
23,654
31,210
29,469
21,856
22,079
21,737
25,511
27,864
25,702
26,212
6,488
5,380
6,138
10,388
8,765
12,010
6,762
7,144
2,988
3,417
2,106
1,528
1,893
580
572
600
1,542
1,939
1,638
1,334
207
644
515
505
4,595
4,800
5,566
9,788
7,223
10,071
5,124
5,810
2,781
2,773
1,591
1,023
o
Gi
No. 32,—Average daily holdings oj United States securities, by months during 1920.
[In thousands of dollars.']
January.
Sep-
October.
23,344
71,683
35,328
24,277
13,520
15,781
44,190
18,404
8,599
21,714
12,208
14,108
30,315
93,042
34,289
31,546
13,494
15,782
44,150
18,073
8,009
21,700
12,299
14,000
24,098
73,603
33,287
24,244
13,024
15, 300
44,908
18,488
8, 013
21,791
12,209
13,822
25,853
73,838
38,450
27, 043
13,761
16,309
40,380
18,519
8, 004
21,092
12,313
17,049
325,497 308,019 344,161 331,824 301,789 347,445 318,309 I 303,288 338,505
198,123 180,372 194,103 213,358 228,080 235,722 248,045 209,048 340,240
148,250 180,516 235,961 155,588 84,040 97,090 04,402 52,105 07,085
55,093 48,273 49,247 111, 029 118,387 112,030 73,529 73,866 88,097
304,053
295,725
124,443
110,808
320,417
307,115
120,789
117,941
Boston
23,249
74,704
32,430
27,722
14,204
16,099
50, 585
18,540
9,147
25,337
12,612
14,802
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco...
Total: 1920
1919
1918
1917
Febru- March.
ary.
August.
Federal Reserve Bank.
23,419
09, 926
32,857
25,197
13,805
15,428
40,770
18,588
8,607
20,400
12,011
14,945
22,398
80,722
32,128
30,527
13,914
16,420
52,173
18,800
11, 219
24,-875
10,492
18,487
April.
May.
25,551
95,358
33,092
20,150
14,528
15,782
44,120
18,917
9,343
22,203
12,033
14,147
22,390 24,002
74,707 104,414
32,217 34,525
24,203 27,222
13,494 13,494
15, 783 15,883
44,121 45,218
18,420 19,213
8,000
9,457
21,928 22,247
12,260 13,420
13,588 IS, 290
June.
July.
23,655
83,049
35,916
24,019
13,945
15,910
44,351
18,480
8,030
21,774
12,486
15,482
Novem- December.
ber.
Year
1920.
Year
1919.
33,546
83,208
33,022
35,420
13,495
16,399
49,139
17,708
8,727
21,728
12,376
14,372
25,152
82,036
33,956
27,401
13,773
15, 909
40,865
18,566
9,026
22,772
12,840
15,258
18,217
74,104
23,203
20,389
9,206
11,289
35,003
15,288
8,677
17,900
10,133
10,524
339,140
327,244
323,554
204,807
100,083
Year
1918.
3,048
50,390
7,135
17,722
3,392
3,740
11,500
3,027
3,814
12,009
0,040
5,089
Year
1917.
3,378
14,374
4,268
11,315
3,672
4,511
15,894
4,207
3,833
O
11,079
0,045
5,717
254,053
128,232
88,353
wo
N o . S3.—Holdings of each class of United States securities on Dec. SI, 1920.
United States certificates
of indebtedness.
United States bonds.
Federal Reserve
Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
United
States
securities
held.
063,000
184,300
895,300
642,650
495,300
787,450
101,600
175,900
595,560
688,350
279,250
117,950
Total.
2 per cent
4 per
2 per cent Panamas j cent
consols
of
loan
of
of 1930.
1936-1938. 1925.
$100
833,400
1,233,300
$915,100 j 237,000
115,560
8,867,250
3, 975,100
2,087,450
Total: 1 9 2 0 . . . . 287,026,610 26,309,310
1919
300,106,685 26,836,110
1918
238,562,510 27,859, 010
1 9 1 7 . . . . 121,689,682 ^51,847,182
4 per cent
Liberty
loan.
$529,000
$538,500
1,468,300
1,433,800
113,650
4,489,600
1,153,400
3 per 3 per cent 3£ per
cent eonverson
cent
loan of bonds of Liberty
loan.
1961.
1946-47.
1,255,
549,
414,
I
1,862,500
100
7,155,000
2,450,900
1,883,750
367,300 j$l,768,000
260
20,000
281,500
14,267,350
906,160
15,053,700
927,160
15,053,700
927,160
15,784,050 1,412,600
Amount of Ur ited States bonds with circulation privilege:
2 per cent consols and Panamas
4 per cent loan of 1925
825,000
2,593,000
2,593,000
2,593,000
5,177,450
10, 300
$400 j 427, 400
300
500 | 114,
838,
1,233,
900
900
900
900
Victory
notes.
Total.
$9,500 $5,000
212, 900 50,000
836,400
402,400 10,250
38,800
53,750
2,800
50,250
$48,100
16,200
42,400
49,600
13,750
20,350 [
600 |
6,050 !
6,526,3300
197,050
114,900
6,526,3300
6,526,300
503,600
6,526,400 3,612,650
4| per
cent
Liberty
loan.
$1,100
8,400
7,400
197,650
j
1,100 1,817,450
I 1,007,050 j 613,100
| 1,136,500 1,117,850
| l l , 769,292 |
600
4,150
72,800
67,575
2 per cent
to secure
circulation
of Federal
Reserve
Bank notes.
$21,519,500
59, 666,000
30,461,500
23,799,000
12,262,000
16,671,000
39,612,000
16,022,500
$21,436,000
59,276,000
30,280,000
23,799,000
12,260,000
16,664,000
39,612,000
15,568,000 |
8,480,000
12,820,500
8,480,000 '
12,820,000
8,300,000
10,880,000 |
8,300,000
11,030,500
260, 644,500
273,203,000
210,703,500
69,842,500
259,375,000
259,375,000
114,008,000
5 26,792,000
All other.
O
$83,500
390,000
181,500
1
2,000
7,000
454,500
500
M
a
o
o
W
P
150,500
2
1
1,263,-500
13,828,000
96,695,500
43,050,500
Amount of United States securities without circulation privilege:
$15,173,510
3 p er cent loan of 1961
$900
3 p er cent conversion bonds
.
6,526,300
2,593,000
3 J per cent Liberty loan
197,050
Total
17,766,510
4 per cent Liberty loan
1,100
41 per cent Liberty loan
.
1,817,450
10,100
31 per cent Victory notes
62,700
4| per cent Victory notes
2 p er cent certificates of indebtedness «
. 259,375,000
.
1,269,500
Ot her Treasury certificates of indebtedness
. 269,260,10~0
Total
1
4
Exclusive of a $1,000 Treasury Savings Certificate of value of $870 on Dec. 31,1920.
Includes $7,563,840 of 3 per cent loan of 1918.
2 Exclusive of a $1,000 Treasury Savings Certificate of value of $846 on Dec. 31,1919.
5 Three per cent 1-year Treasury notes.
3
Includes $9,301,000 of 3 per cent 1-year Treasury notes.
e Circulation privilege for .Federal Reserve Bank notes only.
o
o
Tfl
w
w
>
Ci
No. 34.—Average daily holdings oj each class oj earning assets, earnings thereon, and annual rates oj earnings during 1920 and 1919.
00
[Amounts in thousands of dollars.]
Earnings on—
Average daily holdings of—
Federal Reserve Bank.
All classes of earning
assets.
1920
1919
Discounted bills.
Purchased bills.
1920
1919
1920
142,386
726,895
193,195
126,649
94,546
87,910
209,114
68,688
41,759
83,003
52,666
81,387
27,692
146,371
9,810
54,067
8,320
6,093
53,003
5,154
3,648
3,888
1,334
69,366
25,350
78,282
1,581
44,148
7,687
8,038
49,457
12,939
20,683
7,811
2,366
66,889
25,152
82,036
33,956
27,401
13,773
15,909
46,865
18,566
9,026
22,772
12,840
15,258
18,217
74,104
23,263
20,389
9,206
11,289
35,003
15,288
8,677
17,960
10,133
10,524
12,199
60,138
11,737
14,238
6,675
7,347
29,711
7,047
5,108
7,159
4,389
12,473
7,450
35,151
8,551
7,675
4,637
2
4,331
11,794
3,803
2,926
4,635
2,786
6,777
10,032
49,839
10,420
10,571
5,921
6,688
25,727
6,382
4,734
6,441
4,045
8,260
6,003
29,936
7,988
5,342
4,100
3,735
8,916
2,918
1,829
3,889
2,444
3,668
1,908,198
388,746
325,231
323,554
254,053
178,221
100,516
149,060
80,768
Boston
New Y o r k . . . .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
Bt. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
222,644
1,075,841
233,888
261,278
126,204
137,942
517,057
133,217
185,953
879,281
218,039
191,186
111,439
U07,238
293,574
96,915
88,756
133,065
85,450
227,342
71,119
108,774
65,165
158,800
169,800
847,434
190,122
179,810
104,111
115,940
417,189
109,497
76,082
106,405
71,276
142,718
Total....
3,242,684
2,487,483
2,530,384
of earning
United States securities. All classes
assets.
Discounted bills.
1919
1920
1919
1920
1919
1920
1919
I
W
o
Earnings o n of earning
United States securities. All classes
assets.
Purchased bills.
1919
1920
Annual rates of earnings on—
1920
1919
1920
1919
1920
1919
1920
1919
Per cent.
4.01
4.00
3.92
4.02
4.16
4.03
4.02
3.92
4.11
4.23
4.28
4.26
Per cent.
5.91
5.88
5.48
5.88
5.69
5.77
6.17
5.83
6.22
6.05
5.67
5.79
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.
5.81
5.69
5.85
5.67
5.74
5.55
5.64
5.30
5.26
5.45
5.49
5.61
Per cent.
4.25
4.25
4.24
4.27
4.57
4.57
4.33
4.30
4.27
4.36
4.79
4.29
Per cent.
2.20
2.41
2.19
2.20
2.01
2.01
2.12
2.11
2.02
2.22
2.11
2.12
Per cent.
4.04
5.88
4.23
5.66
4.30
2.21
73
113
506
271
3,891
2,870
322
239
Total...
22,020
13,987
7,141
5,761
5.50
554
309
1,976
1,888
574
67
743
495
3,064
1,883
603
477
352
450
185
338
367
2,989
2,142
277
321
995
274
564
391
321
192
212
883
341
182
214
405
229
736
229
i Including $1,410 average daily holdings of municipal warrants.
United States securities.
1019
Per cent.
5.48
5.59
5.02
5.45
5.29
5.33
5.75
5.29
5.76
5.38
5.14
5.49
1,078
3,327
Purchased bills.
1920
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
1,613
8,323
Discounted bills.
2
G
P
2.03
2.55
2.13
g
£
g
2.21
2.01
2.03
2.10
t^
^
hrj
2.10
g
2.46
2.26
2.26
2.27
|j
S
^
£
2.26
fe:
o
Including $85 earnings on municipal warrants.
>
CD
170
s
ANNUAL REPORT FEDERAL RESERVE BOARD.
AVERAGE DAILY HOLDINGS
Of DISCOUNTED BILLS
AND OF OTHER EARNINGASSETS
BY EACH FEDERAL RESERVE BANK
DURING 1319
OtherCountingJkselz
1
171
CONDITION OF FEDERAL RESERVE BANKS.
I
AVERA6EDAILYHOLDINGS
OF DISCOUNTED BILLS
AND OF OTHER EARNING ASSETS
BY EACHFEDERAL RESERVEBANK
DURIffiWffl
\ to
I
u>ced$Ms
OOier&uTungJissets
1100
1100
\IOOO
\300
1000
900
eoo
600
?oo
700
600
600
500
500
400
400
300
300
200
200
100
100
0
1
I
<3
1
15
1I
0
i
No. 35.—Annual rates (per cent) oj earnings on total earning assets, by months during 1920.
to
Jan- Febuary. ruary. March. April. May. June. July.
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond .
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City ..
Dallas
San Francisco
All banks—
. . .
....
.
.
...
.
1920
1919
1918
1917
..
August.
SepNotem- Octovember. ber. ber.
December.
Year
1920.
4.30
4.49
4.36
4.48
4.43
4.39
4.40
4.33
4.57
4.62
4.43
4.64
4.79
4.95
4.78
4.88
4.91
4.88
4.89
4.76
4.86
4.84
4.50
4.89
5.11
5.17
4.90
5.07
5.13
5.09
5.16
5.03
5.14
5.07
4.68
5.10
5.16
5.28
5.16
5.35
5.01 5.03
5.23 5.22
5.22 5.28
5.18 5.28
5.43 5.50
5.19
5.20
5.37 ' 5.47
5.29 5.53
5.29
5.04
5.42
5.58
5.44
5.62
5.04
5.36
5.46
5.33
5.73
5.10
5.78
5.50
5.17
5.57
5.73
5.85
5.05
5.50
5.51
5.42
6.03
5.50
6.23
5.76
5.51
5.68
5.76
5.99
5.07
5.56
5.56
5.62
6.13
5.49
6.31
5.33
5.28
5.74
5.91
5.97
5.20
5.82
5.44
5.26
6.20
5.24
6.25
5.39
5.16
5.77
6.11
6.12
5.32
6.07
5.45
5.73
6.24
5.36
6.26
5.71
5.24
5.78
6.06
6.14
5.20
5.93
5.51
5.74
0.24
6.15
6.17
5.65
5.57
5.72
5.98
6.14
5.24
5.87
5.52
5.69
6.42
5.92
6.22
5.75
5.39
5.78
5.48
5.59
5.02
5.45
5.29
5.33
5.75
5.29
5.76
5.38
5.14
5.49
4.46
4.04
3.75
2.90
4.88
4.03
3.81
3.03
5.12
4.02
3.86
3.14
5.23
4.01
4.07
2.83
5.36
3.99
4.29
2.93
5.51
4.01
4.20
3.08
5.72
3.98
4.31
3.34
5.81
3.93
4.27
3.37
5.81
3.91
4.21
3.41
5.94
3 95
4.13
3.37
5.98
4 16
4.19
3.37
5.98
4 29
4 14
3.59
5.50
Year Year
1919.
1918.
4.01
4.00
3.92
4.02
4.16
4.03
4.02
3.92
4.11
4.26
4.28
4.26
4.02
3.97
4.19
4.14
4.29
4.17
4.19
4.17
4.45
4.35
4.30
4.41
Year
1917.
3.69
3.15
3.32
3.29
3.47
3.55
3.35
3.36
3.50
3.20
3.41
3.44
4 04
4 12
3.31
W
o
DISCOUNT AND OPEN-MARKET OPERATIONS OF FEDERAL RESERVE BANKS.
N o . 36.— Volume of discount and open-market operations oj each Federal Reserve Bank during 1920, distributed by classes.
[In thousands of dollars.]
Acceptances bought in open
market.
Bills discounted for m e m b e r b a n k s .
Federal Reserve Bank.
Total (all
classes).
Total.
Boston.
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis.. . .
Minneapolis
Kansas City
Dallas
San Francisco
Total—1920
1919
1918
Member
bank
collateral
notes.
Commercial
n.e.s., agri- Bankers'
cultural and acceptances.
live-stock
paper.
5,734,164
56,518,320
6,218,922
4,068,861
3,482,036
2,290,420
7,498,467
2,548,548
1,113,147
1,813,196
1,465,230
3,776,237
4,876,556
50,539,429
5,820,258
2,895,070
3,346,322
2,231,946
6,305,492
2,438,041
953,392
1,667,943
1,280,178
2,905,647
3,878,390
31,160,071
4,093,358
2,279,675
2,907,400
1,513,774
3,697,008
1,349,766
495,587
1,097,144
995,935
2,097,279
971,373
19,262,449
1,717,982
579,003
420,186
697,951
2,550,099
1,067,680
454,667
560,289
277,869
809,960
9Q, 527,548
86,737,007
147,414,531
85,320,874
79,173,970
39,752,934
55,565,447
29,376,108
6,415,899
6,537,833
72,548,008
33,007,788
1
Trade
acceptances.
Total.
Bankers'.
368
704
33,608
4,664
46,255
4,791
23,377
12,676
13,883
26,290
13,471
3,138
10,142
5,070
24,800
304,445
1,697,330
41,232
294,602
51,712
39,577
345,021
36,019
18,059
17,174
8,348
364,845
304,445
1,637,061
41,232
293,811
51,712
39,577
345,021
30,019
18,059
17,174
8,348
351,278
187,162
71,643
19,940
192,157
138,420
187,373
3,218,364
2,825,177
1,809,539
3,143,737
2,788,019
1,748,503
22,129
70,654
4,127
10,015
6,338
32,095
7,124
Trade.
60,269
791
United States securities.
Total.
Bonds.
553,163
4,281,561
357,432
878,589
84,002
18 897
22
231
49
847 954
12
13,567
74,488
141,096
128,079
176,704
445,745
74,627
36,558
61,036
7,988,310
4,737,920
5,850,348
9
323
1,329 ;
73,996 :
Victory
notes.
5
Certificates
of indebtedness.
553,136
4,281,330
357,383
878,589
84,002
18,897
847,942
74,488
4
9
428
o
o
d
O
k
141,696
128,079
176,691
445,745
o
7,987,978
4,736,163
5,776,352
O
t<
xn
Including $1,710,000 of municipal warrants.
CO
No, 37.— Volume
of discount and open-market operations, by months during 1920, distributed by classes.
[In thousands of dollars.]
Acceptances bought in open
market.
Bills discounted for member banks.
Month.
Total (all
classes).
Total.
January...
February..
March
April
May
June
July
August
September.
October...
November.
December..
Total
7,186,317
7,122,048
8,770,099
7,474,478
G, 452,944
7,800,839
7,518,907
8,366,572
8,447,267
8,013,276
8,715,061
10,659,740
96,527,548
Member
bank
collateral
notes.
Commercial
n. e. s. agri- Bankers' Trade
cultural and accept- acceptlive-stock ances.
ances.
paper.
6,241,271
(>, 517,439
6,970,331
6,229,740
6,135,984
6,336,642
6,714,924
7,982,524
7,298,972
7,548,456
7,882,933
9,461,658
5,259,617
5,352,127
5,120,822
4,567,215
4,352,059
4,412,943
4,392,077
4,764,202
4,055,539
4,158,198
4,205,752
4,924,896
947,908
1,125,700
1,791,592
1,619,057
1,752,130
1,900,330
2,302,321
3,198,821
3,218,170
3,360,515
3,648,763
4,510,801
17,226
28,611
34,534
28,172
15,254
9,431
7,069
5,490
8,103
10,354
13,275
9,643
16,520
11,001
23,383
15,296
16,541
13,938
13,457
14,011
17,160
19,389
15,143
16,318
85,320,874
55,565,447
29,376,108
187,162
192,157
Total.
302,452
300,308
303,360
247,594
274,237
285,752
219,464
259,708
257,989
281,832
231,840
253,828
3,218,364
Bankers'.
Trade.
299,746
296,959
298,459
240,704
270,498
261,333
209,296
247,438
255,858
280,162
230,832
252,452
3,143,737
74,627
United States securities.
Total.
Bonds.
Victory Certificates
indebtnotes. ofedness.
642,
304,
1,496,
997,
42,
1,178,
584,
124,
890,
182,
600,
944,
218
642,376
304,296
1,496,387
997,143
42,723
1,178,445
584,519
124,321
890,306
182,927
600,282
944,253
7,988,310
323
7,987,978
w
o
N o . 38.— Volume of total discount and open-market operations of each Federal Reserve Bank, by months during 1920,
[In thousands of dollars.]
Total.
Federal Reserve
Bank.
January.
February.
March.
April.
June.
July.
August.
September.
October.
November.
December. •
1920
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas.
San Francisco
553,670
405,784
413,248
458,459
494,121
371,816
468,251
493,475
451,325
477,281
489,235
,763,552 4,072,539 4,574,324 4,013,612 3,375,928 4,348,461 4,543,008 5,280,564 5,194,087 5,136,230 5,384,388
502,465
429,038
571,917
656,620
407,303
596,705
525,833
551,630
558,633
544,619
461,997
335,978
329,9P0
323,431
357,782
199,583
333,466
338,070
231,866
224,380
484,519
266,231
277,407
252,647
284,902
323,244
248,615
327,562
290,865
262,500
271,093
351,353
296,817
148,445
241,007
209,773
157,947
230,844
160,846
168,730
185,617
209,481
163,918
177,269
562,065
592,147
656,961
739,687
535,298
553,987
630,783
527,059
547,984
911,115
541,478
177,183
180,062
212,634
203,600
210,673
277,723
208,560
195,462
207,494
288,700
208,541
83,331
76,386
74,713
83,998
110,890
121,504
76,082
81,749
145,260
89,921
68,294
141,650
161,254
148,413
169,348
145,170
153,692
151,738
150,307
178,502
134,584
135,647
125,347
125,574
83,947
114,961
117,952
148,720
115,487
111,638
210,928
111,446
85,350
322,369
295,946
271,028
263,175
378,106
371,500
306,642
254,997
203,976
423,387
337,407
057,499 5,734,164 5,096,885 2,039,592
6,831,626 56,518,319 46,793,873 30,509,110
412,162 6,218,922 10,803,405 1,9^3,467
643,565 4,068,861 3,672,224 1,766,465
295,030 3,482,035 4,224,360 2,263,334
236,543 2,290,420 2,086,263 1,016,113
699,903 7,498,467 5,696,847 3,536,026
177,916 2,548,548 2,206, 922 1,117,801
101,019 1,113,147
872,450
543,785
142,890 1,813,195 1,613,475
859,342
113,882 1,465,232 1,256,774
635,747
347,705 3,776,238 2,413,589 1,148,749
Total: 1920.. 7,186,317 7,122,048 8,770,100 7,474,478 6,452,944 7,800,839 7,518,907 8,366,571 8,447,267 8,013,276 8,715,061 10,659,740
1919.. 7,025,336 5,454,819 5,706,085 6,125,884 7,620,107 i, 771,913 7,692,825 6,808,747 8,801,292 8,468,03.2 7,812,081 8,449,946
1918.. 1,525,985 1,443,795 1,993,080 2,605,720 3,309,207 3,655,664 3,490,037 3,955,612 4,953,969 6,793,019 5,569,709 8,118,734
1919
O
o
d
3
3
6,527,548
86,737,067
47,414,531
9
o
ui
N o , 39.— Volume of bills discounted by each Federal Reserve Bank during 1920, by months and
maturities.
[In thousands of dollars.]
Federal Reserve Bank and
maturity.
All Federal Reserve Banks
combined:
Within 15 days
16 to 30 days
31 to 60 days
61 to 90 days
91 to 180 days
Total
Total.
April.
May.
June.
July.
August. September. October. November. December.
351,887
5,899,599
70,826
190,537
346,148
10,330
6,103,801
103,-157
203,610
419,826
19,931
5,461,473
102,613
231, C35
403,718
30,301
5,410,584
99,399
204,132
380,371
41,498
5,606,915
92,351
207,479
378,216
51,681
6,020,225
76,712
190,306
387, C33
39,CS8
7,138,998
116,105
254,421
453,918
19,081
6,348,625
133,053
270,715
525,017
21,561
6,662,034
132,437
268, 243
456,231
29,512
7,062,538
150,374
253,087
382,097
34,838
8,530,143
167,148
261,812
460,723
41,832
85,320,874
6,241,270
6,517,440
6,970,331
6,229,740
6,135,984
6,336, 642
6,714, 924
7,982,523
7,298,971
7,548, 457
7,882,934
9,461,658
4,059,551
153,606
328,773
334,301
325
316,772
4,764
13,960
27,809
357,502
12,034
27,390
39,074
308,215
13,702
28,384
50,701
291
297,500
7,574
15,274
25,687
4
359,677
15,349
15,379
30,723
2
344,125
15,752
33,938
22,848
22
237,447
8,672
20,298
20,0C3
4
344,443
21,311
29,497
21,520
310,300
21,891
34,855
18,081
1
282,415
9,511
27,904
17,531
1
373,546
13,934
49,978
18,701
467,549
8,452
31,910
41,497
4,876,556
363,305
436,606
461,413
340,039
421,130
416,685
286,484
416,777
385,188
337,302
456,159
549,408
48,698,427
300,214
413,386
1,127,003
399
3,233,984
15,768
51,317
152,950
32
3,653,118
11,787
33,795
99,592
27
3,604, ?A J 3,022,889
17,039
16,875
23,252
52,174
102,792
82,017
50
190
3,033,398
3,966,736
4,238,096
27,821
25, £06
119,656
14
4,720,503
45,710
58,011
84,056
6
6,037,400
59,516
37,722
73,264
3
4,888,920
29,372
37,192
136,122
35
4,946,722
45,545
17,517
78,592
30
3,345,215
10,209
20,458
49,229
12
50,539,429
3,454,051
3,798,319
3,755,960 3 165,858 3.181.044
3,425,123
4,044 470
5,091,647
4,412,393
4,914,286
5,088,376
6,207,902
2,774,388
4,953,099
Total
Total
March.
5,609,280
83,110
178,345
359, 201
11,334
75,914,215
1,327,285
Boston:
Within 15 days
16 to 30 days
31 to 60 days
61 to 90 days
91 to 180 days
New York:
Within 15 days
16 to 30 days
31 to 60 days
61 to 90 days
91 to 180 days
January. February.
11,215
33,592
102,809
9,357
22,450
45,924
Philadelphia:
"Within 15 days
16 to 30 days
31 to 60 days
61 to 90days
91 to 180 days
5,400,979
65,656
64,747
288,800
76
577,191
5,374
Total.
5, 820, 258
647,658
Cleveland:
Within 15 days.
16 to 30 days
31 to 60 days
61 to 90 days
91 to 180 d a y s . . .
2
.58,209
216,786
4,705
9,786
12,502
246,663
4,410
10,406
2,895,670
243,779 |
276,972
2, 942,280
78,365
162, 247
157,316
286,555 | 243,601
3,738
4,380 |
8,660
7,353 j
8,275
6,578 I
2,520,438
59,871
114,531
193, GO 3
15,488
1,225
Total.
Richmond:
Within 15 days.
16 to 30 days
31 to 60 days
61 to 90 days
91 to 180 d a y s . . .
Total
5,123
59,968
516,683
5,214
5,562
30,805
6,114
21 |
517,425
5r401
5,160
14,851
6
542,843
514,405
4,408
3,965
46,413
569,199
428,929
4,988
6,540
19,540
3
480,000
496, 289
450,177
5,495
4,605
29,439
11
498,450
4,550
3,686
14,192
4
402,939
3,612
3,678 |
8,241 |
336,807
6,865
5,265
25,974
337,258
2,941
4,231
10,231
354,358
9,484
2I
3
10
17
489,727
520,882 j
418,472 i
374,9i4
354,671
387,334
10,952
12,523
100,702
4,289
7,552
24,300
134
173,820 I 142,272 j 134,931
2,572 ;
8,183
4,280;
5,783 I
9,028
6,528 |
15,289 |
11,107 j 18,228
104 '
190
107
203,036
1,788
9,293
13, 247
131
195,254
4,284
10,359
14,391
10
18,107
129
12, 219
23, 818
153
239,219
224, 298
196,977 j
197,508 I
104,377 j
170,537
232,353 I
413/744
269,440 j 266,783
4,719 |
4,736
11,546 j 11,352
9,034 ;
8;178
338
871
243,526
9,266
16,579
16,224
1,708
213,898
5,701
14,033
10,275
1,510
232,692
4,247
11,933
236, 887
7,602
18,064
16,167
347
18,309
150
203, 047
6,932
16, 068
14, 656
203,583
8,792
13,866
14,650
10S
368
244,827
9,329
18,229
IS, 424
424
241,368
6,831
10,326
13, 978
100
223 465
6,098
14,428
19, 150
102
211, 432
5,586
272,003 j
263,243 \
297,441
8,923
14,564
10,546
101
4!>0,357
7,324
5,980
16,623
8,823
370, 709
6,845
^
a
o
l
H
O
--
Atlanta:
Within 15 days.
16 to 30 days
31 to 60 days
61 to 90 days
91 to 180 d a y s . . .
Total.
3,346,322
304,8
264,322
331,575
295,077
1,732,501
68,394
144, 953
266,302
129,417
3,874
7,467
9,625
38
114,000
3,645
7,707
11,335
22
119,968
4,705
il, 870
19,069
404
150,421 |
136,709
156,016
291,920 |
287,303
251,417 I
119,040 j 131,441
5,170 I
5,457
11,924 | 12,188
22,651
19,819
2,436
683 !
128,245
5,527
8,182
17,232
3,565
131,577
4,704
11,994
27,147 |
156,636 I
162,751
180,187 I
205,386
240,871
241,259
291,233
173,428
153,498
8,115
6,232 !
15,789 '; 14,546
31,695 '; 30,026
769
520
195,505
5,898
11,904
23,956
2,033
180,883
7,025
15,403
27,196
2,340
207,734
239,296
232,856
281,012 •
>
19,796
2,231,946
174,173
155,499
8,042
15,979
26,551
2,212
4,765 !
208,283 i
226,884
o
No. 39.— Volume of bills discounted by each Federal Reserve Bank during 1920, by months and maturities—Continued,
00
[In thousands of dollars.]
Federal Reserve Bank and
maturity.
Chicago:
Within 15 days
10 to 30 days
31 to 60 days
61 to 90 days
91 to 180 days
Total
St. Louis:
Within 15 days
10 to 30 davs
31 to 60 days
01 to 90 days
91 to 180 davs
April.
May.
June.
July.
57,045
84,157
1,907
377,302
21,281
87,145
142,202
8,330
343,997
26,513
01,027
339,596
24,737
43,646
92,169
345,965
15,659
52,051
139,403
5,829
7,788
307,511
16,869
60,381
105,635
5,906
299,938
18,584
80,089
107,884
4,451
325,911
32,139
78,766
175,986
8,876
270,460
17,985
62,129
127,907
8,953
282,809
41,076
64,568
119,974
9,436
303,190
28,803
55,368
159,758
9,599
408,577
472,090
(536,380
529,995
505,977 j
500,926
496,302
510,940
621,078
487,434
517,803
556,718
1,721,480
101,217
290,160
314,503
10,6S1
149,812
13,201
17,884
14,328
105
132,477
0,020
15,213
12,421
40
219,733
10,024
15,178
24,269
192
181,238
11,722
46,102
22,156
1,387
135,297
6,824
34,504
27,847
1,007
126,141
5,452
19,426
25,701
1,456
120,975
4,733
18,969
39,719
2,165
137,425
6,050
24,518
36,942
135,340
8,971
24,995
37,142
845
124,790
7,628
24,242
20,856
057
110,758
12,173
26,624
17,611
786
141,488
7,753
22,505
35,511
906
2, 438,041
195,390
160,777
269,396
262,605
205,479
178,176
192,561
205,721
207,293
208,163
178,179
168,301
515.854
61,057
118,106
222,706
35,069
44,375
2,504
0,501
0,004
1,139
42,574
1,443
5,516
12,214
1,089
37,200
2,824
10,242
10,980
1,149
48,132
4,917
11,413
21,358
3,532
47,663
7,966
8,242
17,859
5,873
49,097
7,970
6,665
23,180
7, 846
36,933
6,412
5,309
18,741
4,896
37,321
9,242
9,497
23,265
36,252
4,761
13,005
26,654
2,359
42,157
5,903
16,484
16,916
1,229
60,583
5,256
11,505
10,314
1,858
33,501
2,399
13,727
22,021
1,457
953,392
01,183
02,830
08,401 :
89,352
87,603
94,758
72,291 1
81,183
73,705
83,031
82,689
90,300
January.
February.
3,816,927
277,235
745,940
1,386,270
79,120
305,691
19,105
43,125
39,189
1,407
314,497
14,484
0,305,492
Total.
March.
91,880
<i, 572
August.
September. October. November. December.
1,135
•
Total
Minneapolis:
Within 15 days
16 to 30 days
31 to 60 days
61 to 90 d a y s . . .
91 to 180 day s
Total
2,642
Kansas City:
Within 15 days
16 to 30 days
31 to 60 days
61 to 90 days
91 to 180 days
Total
Dallas:
Within 15 days
16 to 30 days
31 to 60 days
61 to 90 days
91 to 180 days
Total
San Francisco:
Within 15 days
16 to 30 days
31to60davs
61 to 90 days
91 to 180 days
Total
1,121,468
58,612
146,235
238,605
103,023
92,446
2,451
6,053
12,694
5,135
71,778
2,410
9,235
17,360
4,623
90,256
4,663
11,942
1,667,943
118,779
1,002,957
27,312
82,187
122,785
44,937
77,569
1,114
1,159
2,860
3,096
99,310
7,464
19,405
26,826
5,100
96,475
7,517
18,088
30,862
11,027
91,107
5,742
13,587
18,628
11,509
87,683
6,023
12,805
19,690
12,985
147,853
145,550
158,105
163,969
140,573
139,186
90,734
1,597
7,892
9,642
7,425
75,810
2,772
8,708
16,447
5,797
82,094
2,485
10,015
13,402
2,787
90,826
4,004
10,693
15,951
84,993
3,541
7,960
14,452
2,566
2,607
93,045
3,428
10,315
12,238
5,026
79,181
3,254
9,489
11,541
7,345
111,180
117,290
109,534
110,783
124,040
113,553
124,052
110,810
201,058
6, 904
13,089
17,695
3,722
275,223
6,864
15,875
20,282
6,537
171, 920
5,975
16,850
26,277
9,253
205,529
3,424
6,869
24,165
7,134
185,053
4,977
12,922
21,444
3,401
178,785
6,638
18,309
39,402
1,840
175,235
5,564
13,734
30,374
2,546
168,974
7,699
17,102
29,248
4,441
233,022
10,988
19,586
39,087
5,183
302,468
324,781
230,275
247,121
227,797
244,974
227,453
227,464
307,866
18,737
4,665
92,566
5,747
13,906
18,993
10,861
89,244
4,302
9,607
16,497
13,828
100,336
3,336
9,099
17,406
12,531
106,930
4,284
9,198
19,778
7,663
103,337
4,673
13,310
21,134
105,406
130,263
142,073
133,478
142,708
69,276
579
1,505
827
2,567
793
79,785
1,197
4,358
6,381
1,771
87,743
1,966
5,709
8,735
3,042
91,901
1,375
4,384
8,569
4,951
1 280 178
83,529
74,720
93,492
107,195
2,381,353
75,146
163,123
294,903
51,122
178,682
5,750
8,617
14,094
2,568
137,430
3,856
7,897
12,860
1,771
210,442
6,507
12,273
19,975
2,726
2,965,647
209,711
163,814
251,923
00
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o
4
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o
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O
>
H
O
3
CD
N o . 40.— Volume of bills discounted during 1920, distributed by classes, also average rates and maturities.
00
O
[In thousands of dollars.]
Federal Reserve Bank.
Member banks' collateral
notes.
Customers'
Commercial,
paper
n. e. s., agrisecured by
cultural,
and
Government Secured by
live-stock
war
Government Otherwise
paper.
obligations.
war
secured.
obligations.
Trade
acceptances.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco
196,056
941,191
322,351
94,628
48, 794
65,293
141,848
94,417
23,193
48,617
15,793
36,961
3,877,974
31,159,778
4,093,104
2,274,415
2,889,355
1,506,098
3,674,533
1,346,814
455,581
1,065,410
984,150
2,083,664
416
293
254
5,260
18,105
7,676
22,475
2,952
40,006
31,734
11,785
13,615
775,317
18,321,258
1,395,631
484,975
377,392
632,658
2,408,251
973,263
431,474
511,672
262,076
772,999
4,664
46,255
4,791
26, ?77
12,676
13,883
26,290
13,471
3,138
10,142
5,670
24,800
Total...
2,029,142
55,410,876
154,571
27,346,966
192,157
Bankers'
accept-
22,129
70,654
4,127
10,015
6,338
32,095
7,124
368
704
33,608
187,162
Total.
Average
maturity.
4,876,
50,539,
5,820,
2,895,
3,346,
2,231,
6,305,
2,438,
953,
1,667,
1,280,
2,965,
Days.
13.14
7.34
13.24
16.45
13.71
25.26
34.74
24.77
38.85
34.54
27.42
21.13
85,320,874
13.29
Average
rate
(365-day
basis).
Per cent
6.03
5.97
5.44
5.66
5.78
5.97
6.32
5.98
6.40
6.65
5.80
5.82
6.02
j
O
W
H
w
o
N o . 41.— Volume
of bills discounted, by States;
number
of member banks in each State, and number accommodated through discount
1919 and 1920.
operations;
[Amounts in thousands of dollars.]
State.
N u m b e r of
member banks
in each State on
Dec. 31—
1919
Maine
New Hampshire.
Vermont
Massachusetts
Rhode Island
1920
65
55
48
66
55
49
187
20
189
20
Number accommodated
during—
1919
42
46
41
165
14
1920
38
45
40
160
16
Total amount of paper
discounted—
State.
1919
77,747
99,425
53,315
4,108,984
133,014
Connecticut:
District No. 1
District No. 2
57
15
57
14
40
12
43
12
202,913
110,454
149,843
83,856
Total..
72
71
52
55
313,367
233,699
574
595
419
404
41,223,867
49, 80.5,621
120
1,115,170
649,952
New York
New Jersey:
Total.
Delaware
245
260
178
182
1,328,051
888,470
23
22
14
20
41,370
43,016
Pennsylvania:
District No. 3
District No. 4
574
314
590
321
417
144
402
146
10,482,185
1,712,941
5,538,724
1,753,118
Total
888
911
561
548
12,195,126
7,291,842
Ohio
Number accommodated
during—
Total amount of paper
discounted—
2
1919
1920
50,294
49,932
30,252
4,554,281
41,954
N u m b e r of
member b a n k s
in each State on
Dec. 31—
1920
1919
1920
1919
1920
439
459
226
260
1,324,416
1,062,757
Kentucky:
District No. 4
District No 8
74
67
75
69
29
36
35
45
59,146
461,520
49, 709
426,245
Total
141
144
65
80
520,666
475,954
i6
o
West Virginia:
District No. 4
District No. 5
110
16
116
10
46
9
36
29,353
46,838
30,086
45,886
Total
126
132
56
45
76,191
75,972
15
102
16
98
185
10
70
140
85
96
105,261
l,0C0,475
2,195,063
356,206
427,1C0
830,265
1,737,53S
303,320
304,961
District of Columbia
Maryland
Virginia
North Carolina
South Carolina
124,3£2
C6
$7
98
10
68
124
74
92
Tennessee:
District No. 6
District No. 8
85
23
770,004
16
51
21
578,661
25
256,579
216,780
Total
108
111
70
72
835,240
9F6,790
120
61
139
65
119
46
134
46
£68, 548
106, 733
540,167
100,324
Cxeorgia
Florida...
i70
92
a
o
d
>
W
H
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00
No. 41.— Volume of bills discounted, by States; number of member banks in each State, and number accommodated through discount operations;
1919 and 1920—Continued.
00
to
[Amounts in thousands of dollars.]
State.
Number of
member banks
in each State on
Dec. 31—
1919
Alabama
Mississippi:
District No. G
District No. S
Total
Louisiana:
District No. G
District No. 11
109
1920
121
Number accommodated
during—
1920
1919
86
95
Total amount of paper
discounted—
State.
1919
167,699
1920
144,048
19
15
18
15
18
15
11
32,536
7
12,231
31,274
18,706
34
33
25
26
44,767
49,980
33
20
24
11
31
14
551,600
15
37,425
646,129
26,232
Total
47
53
35
45
589,025
672,361
Michigan:
District No. 7
District No. 9
215
41
226
46
161
12
171
1,743,005
17
1, 216,159
6,909
Total
256
272
173
188
1,223,068
1,749,911
6,906
Wisconsin:
District No. 7
District No. 9
129
132
53
56
Total
182
188
108
117
269,500
406,939
434
459
341
424
547 591
823,005
Iowa
1919
88
20
97
20
263,943
5,557
385,750
21,189
1920
Number accommodated
during—
1919
1920
Total amount of paper
discounted—
1919
1920
Illinois:
District No. 7
District No. 8
Total
380
169
390
176
208
93
277
103
2,254,682
71,574
2,982,798
122,459
549
566
301
380
2,326,256
3,105,257
216
214
61
153
23
155
63
30
273,937
45,962
370,334
41,544
279
275
176
185
319,899
411,878
100
61
111
65
35
82
58
45
1,100,475
632,952
1,407, 879
687,211
161
169
100
127
1,733,427
2,095,090
114
65
174
94
242
80
144
o
Indiana:
District No. 8
32
Number of
member banks
in each State on
Dec. 31—
Total
Missouri:
District No. 8
District No. 10
Total
Arkansas
Minnesota
North Dakota
South Dakota
Montana
Wyoming
Nebraska
Colorado
101
335
168
368
187
152
200
46
207
135
179
144
152,290
204,422
570,420
18,412
45,963
14 260
5,042
734,318
55,649
82,986
52 344
356,931
222,453
88
130
101
151
50
26
210
173
35
192
436,359
145
79
114
89,304
25,666
W
o
>
Kansas
255
271
124
171
98,169
125,537
Oklahoma:
^
District No. 10
g
District No. 11
320
36
340
40
235
257
37
286,724
19,836
239,982
35
Total
356
380
270
294
306,560
267,739
*" New Mexico:
District No. 10
M
DistrictNo.il
14
13
7,046
43
7
35
12
40
38
17,511
10,163
20,560
54
56
42
50
24,557
30,723
655
737
518
604
1,144,804
1,201,012
Arizona:
District No. 1 2 . . .
27, 757
4,617
16,790
Total
Utah..
a
California
CO
T 0 ta 1
Texas
W
a
o
d
Washington
Alaska. . .
Total, all States
85,320,874
g
>
H
i
00
CO
N o . 42.— Volume of bills discounted for national banks and for State bank and trust company members oj the Federal Reserve System during 1920 and 1919.
[In thousands of dollars.]
1920
1919
1920
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
National banks.
Total.
Federal Reserve
Bank.
4,876,556 4,675,398
50,539,429 42,449,491
5,820,258 10,736,435
2,895,670 3,125,857
3,346,322 4,130,943
2,231,946 2,005,778
6,305,492 4,556,312
1919
3,903,570 4 003,489
42,514,279 34,131,313
4,985,343 9,021,397
1,759,446 2,169,280
3,119,260 3,818,758
1,520,311 1,478,777
4,335,290 2,927,458
State bank and
trust company
members.
Total.
National banks.
Federal Reserve
Bank.
1920
1919
972,986
8,025,150
834,915
1,136,224
227,062
711,635
1,970,202
671,909
8,318,178
1,715,038
956,577
312,185
527,001
1,628,854
St. Louis
Minneapolis
Kansas City
Dallas
i San Francisco
|
Total
1920
1919
2,438,041
953,392
1,667,943
2,100,631
661,520
1,555,597
1,224,946
1,951,062
1,280,178
2,965,647
85,320,874 79,173,970
1920
1,689,278
887,148
1,474,277
1,150,000
1,949,150
State bank and
trust company
members.
1919
1920
1919
1,065,560
614,780
1,471,579
1,123,343
1,692,939
748,763
66,244
193,666
130,178
1,016,497
1,035,071
46,740
84,018
101,603
258,123
69,287,352 63,518,673
16,034,522 15,655,297
N o . 43.— Volume of bills discounted secured by Government tvar obligations, by months during 1920.
[In thousands of dollars.]
Year.
Federal Reserve
Bank.
Total.
Boston .
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
Member
January.
banks' Customcollateral ers'paper.
notes.
4,074,030 3,877,974
32,100,969 31,159,778
4,415,455 4,093,104
2,369,043 2,274,415
2,938,149 2,889,355
1,571,391 1,508,098
3,816,381 3,674,533
February.
March.
April.
May.
June.
July.
August. SeptemOctober. November.
ber.
198,056
343,955
374,375
381,400
304,880
372,969
250,501
349,388
343,463
304,670
270,305
350,984
941,191 3,066,097 3,369,072 2,895,562 2,452,346 2,227,110 2,419,799 2,676,440 2,940,516 2,271,608 2,535,542 2,453,927
322,351
594,744
461,021
451,064
464,752
393,587
375,112
323,533
315,287
242,002
273,440
252,626
94,628
210,493
242,728
229,306
213,342
199,399
186,901
152,020
163,543
124,496
119,815
178,832
48,794
289,386
247,362
297,124
270,845
267,175
242,023
212,479
232,952
202,170
231,648
202,974
65,293
128,038
115,157
118,203
117,470
126,653
118,113
122,330
156,019
148,851
140,911
145,344
141,848
305,562
321,057
380,020
342,224
335,253
346, 111
305,394
309,582
316,386
271,360
284,828
December.
427,140
2,792,950
268,287
348,168
242,011
134,302
298,604
oo
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
1,441,231
478,774
1,114,027
999,943
2,120,625
1,346,814
455,581
1,005,410
984,150
2,083, GC4
94, 417
23,1G3
48, C17
15,793
30, 961
147,548
45,075
84, 353
70, 922
104, 171
102,499
42,444
09,706
69, Of3
129,766
152 082
39,075
84 991
80,006
190,051
144,183
47,242
90,553
88,584
234,651
] 116,071
j 45,824
| 91,402
I 91,475
241,548
110,505 106,085
34,4C3
46,704
1C3,3C0 108,277
91,503 i 75,913
155,317 166,071
112,987
33,814
107,032
82, 734
143,222
117, 103
32, 258
100,775
90, 241
1C0,526
123,247
35,218
97,505
83,891
167,442
109,742
34,476
89,541
92,211
154,991
99,179
42,181
86,532
77,370
212,869
Total: 1920... 57,440,018 55,410,876 2,029, 142 5,456,344 5,544,280 5,298,884 4,771,072 4,508,460 4,544,836 4,533,506 4,933,983 4,164,062 4,305,269 4,349,723 5,029,593
1919... 74,187,280 72, 289,835 1,897,445 5,713,903 4,755,629 5,271,540 5, €93,811 7,169,367 6,036,278 6,824,988 6,170,782 6,238,301 7,348,942 :>,761,542 6,202,197
1918... 33,390,080 32, 142,406 1,247,674 378,507 400,037 315 116 1,806,669 2,523,506 2,621,132 2,469,385 3,127,333 4,077,897 5,308,281 4,601,248 5,760,969
O
O
d
No. 44.— Volume of trade acceptances discounted, by months during 1920.
[In thousands of dollars.]
Federal Reserve Bank.
Boston
New York
Philadelphia....
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total: 1920
1919.
1918.
1917.
January,
583
6,335 j
280 !
1,757 |
557
755
1,266
1,652
165
253
157
2,754
16,520
10,904
13,998
574
Febru- March.
ary.
April.
May.
June.
July.
Novem- Decem| August. September.
ber.
ber. October.
3,155
233
3,299
908
1,460
2,044
1,288
179
449
573
820
383
4,201
518
2,217
682
1,212
1,628
1,122
401
828
140
3,149
415
2,143
355
1,217
1,798
1,925
1,245
744
375
1,002
729
1,990
146
2,113
541
2,422
870
642
1,885
937
336
1,023
346
2,196
193
4,215
316
2,200
675
745
1,994
656
289
623
436
1,669
170
3,989
231
2,138
1,207
758
2,279
823
166
l,C01
691
3,107
156
3,673
351
2,220
1,248
1,808
2,968
1,708
539
1,122
1,111
2,485
88
1,671
1,071
1,056
3,389
913
221
1,050
778
1,939
195
1,758
547
1,917
1,337
1,409
3,641
1,352
220
1,295
553
2,094
11,001 | 23,383 I 15,296
8,880 I 8,561
8,071
19,217
16,231
11,121
856
763
678
10,541
7,062
13,106
1,768
13,938
7,946
14,811
2,521
13,457
8,505
13,822
1,077
14,011
6,428
12,762
1,668
17,160
10,608
20,917
1,120
19,389
16,064
23,519
4,355
15,143
21,924
16,191
6,960
16,318
23,467
11,617
15,425
257
4,456
837
1,033
505
311
896
1,030
73
318
7
1,278
1,704
7,364
488
4,286
1,818
1,802
2,455
1,246
174
578
149
1,319
174
2,793
Year
1920.
Year
1919.
Year
1918.
4,664
46,255
4,791
20,377
12,676
13,883
26,290
13,471
3,138
10,142
5,670
24,800
10,821
57,133
3,753
14,091
9,083
8,234
6,581
7,946
565
7,486
1,887
10,840
10,287
70,677
5,650
24,894
13,389
11,697
192,157
9,033
15,681
799
10,401
2,057
12,807
Year
1917.
6,115
6,864
726
4,401
3,160
4,562
430
3,115
364
2,646
178
5,210
S
H
O
3
138,420
187,372
37,771
00
N o . 45,— Volume of bankers' acceptances discounted, by months during 1920,
OO
[In thousands of dollars.]
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta .
Chicago
St Louis
Minneapolis
Kansas City
Dallas
January.
1,554
10,701
..
271
2,413
321
San Francisco
Total* 1920
1919
..
..
February.
March.
April.
May.
June.
July.
August.
9,874
3,586
1,830
32
7,312
10,994
812
102
1,032
13,220
32
493
1,757
4,967
18
230
490
2,065
292
178
3,535
118
85
279
11,815
80
1,613
7,509
808
2,247
4,100
553
545
1,703
482
253
461
727
115
655
827
615
734
30
135
5,387
30
153
4,782
31
14
135
1,703
15,254
1,112
9,431
496
7,069
361
1,966
1,115
5,249
145
100
6,250
17 226
28 611
34,534
28 172
1,577
737
780
420
SepNovemtember. October.
ber.
10
1,831
23
2,244
225
452
1,568
332
December.
Total,
1920.
Total,
1919.
4,985
77
5,808
125
1,686
22,129
70,654
4,127
10,015
346
136
1,085
461
6,338
32,095
7,124
49
11
12
368
704
357
1,831
1,319
253
33,608
365
10 354
1,271
13 275
9 643
62,246
187 162
5,684
475
1,003
6,019
200
4,1F6
125
585
855
160
222
262
930
1,502
46
181
2,251
5,490
182
8 103
388
932
2,053
61,771
19
IS
4,146
71,643
N o . 46.— Volume of bills discounted during 1920, by normal rates oj discount charged.
[In thousands of dollars.]
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland .
Richmond..
Atlanta
. .
4£ per cent.
712
30
1,360
h
ih per cent.
6,246
571
29,345
11,544
13,094
w
o
5 per cent. I 5£ per cent. 5J per cent, i 5f per cent. 6 per cent. 6i per cent. 7 percent.
439,151
4, 845,083
666,285
223,518
286,202
153,055
555,159
5,470,246
740,370
283,335
167,176
223,334
1,722,816 !
14, 756,459
13,282
1,562
823
6,182
1,619,999
10,406,461
1,390,822
15,061,180
476,508
759
2,981,356
27,514
807,434
1,089,030
1,071,849
13,899
1,777,648
1,133,790
6,795
500,010
532,473
28
195,686
Total.
4,876,556
50,539,429
5,820,258
2,895,670
3,346,322
2,231,946
Chicago
St. Louis
Minneapolis .
Kansas City.
Dallas
54,586 I
49,86.2 |
158
4,092
52,473
30,883
San Francisco.
Total
2,118
252, 854
490,347
172,575
107,579
39,691
35,896
278,442
483,277
238,007
37,682
156,554
248,603
247,640
9,679 1,147,867 [
2,463
1,013,017'.
183
160,018 !
1,101 j
644,281 |
2,497 |
651,292 j
189,555 i
443,021 |
7,737,824 j 8,^51,383
C27,327
114,224
10
30,873
8,471
197,384
26,55O,3F1 I 1,471,019
2,397,837
962,077
322,270
791,351
280,933
1,578,706 |
22,504,622
6,305,492
2,438,041
953,392
1,667,943
13 ! 1,280,178
2,965,647
1,607,675
40 |
323,351 j
2,141
17,721,205 | 85,320,874
2,141
Xfi
a
o
d
N o . 47,—Number oj banks in each district accommodated through discount operations, by months during 1920.
Federal Reserve district.
January.
Febru- March.
ary.
April.
May.
June.
July.
Novem- DecemAugust. September.
ber.
ber. October.
Total,
1920.
Total,
1919.
Total,
1918.
Total,
1917.
O
Boston
ISfew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St Louis
Minneapolis
Kansas City
Dallas .
San Francisco.
.
. .
Total—1920
1919
1918
1917
307
375
393
238
264
159
530
204
228
297
210
256
227
343
374
226
243
153
588
209
221
276
217
261
239
373
361
239
282
177
625
241
275
314
252
292
254
390
364
291
317
207
709
271
345
394
317
316
252
389
374
307
353
254
735
301
441
471
404
361
246
365
378
296
377
267
739
297
495
494
610
384
231
347
357
298
390
288
751
287
502
508
519
380
201
323
365
282
371
294
742
285
488
488
527
414
219
323
348
258
356
310
772
303
410
547
521
391
217
306
310
248
340
323
848
310
508
614
542
386
219
316
325
• 239
343
335
1,026
299
587
658
524
404
256
345
341
272
373
310
959
318
664
671
600
442
3,461
3,316
1,432
309
3,338
3,091
1,353
262
3,670
3,575
1,568
315
4,175
3,875
2,100
384
4,642
4,035
2,793
590
4,948
4,047
3,021
900
4,858
3,685
3,462
960
4,780
3,460
3,671
990
4,758
3,722
3,4G4
953
4,952
3,839
3,610
1,140
5,275
3,649
3,667
1,574
5..551
3,659
3,288
1,701
342 i
536
484
450
437
372
1,124
386
704
826
702
578
348
546
494
409
414
347
951
305
475
679
607
418
218
322
201
160
246
228
541
149
284
364
258
156
269
522
457
320
373
327
850
278
580
554
548
415
|
6,941
o
>
>
H
O
5,993
5 493
3,127
00
Minneapolis
Kansas City
Dallas
San Francisco
27.82
31.58
36.95
39.94
28.02
32.33
18.74
31.09
22.88
36.31
25.54
40.95
39.32
26.98
20.28
17.76
15.72
12.26
10.74
27.73
13.77
10.15
22.25
18.29
17. c 7
All banks—1920.
1919.
1918.
13.21
10.34
18.90
21.57
40.42
28.76
28.59
21.41
42.99
33. 72
28.43
26.00
45.80
39.87
28.59
23.38
36.47
37.67
28.94
25.26
33.33
39.39
33.22
23.47
38.85
34.54
27.42
21.13
13.63
9.41
12.85
12.38
9.33
12.70
14.27
9.44
10.38
13.26
9.54
11.17
12.17
11.36
12.37
11.55
11.52
8.54
13.29
42.24
31.01
33.55
17.16
43.62
35.02
29.11
26.22
15.08
14.74
14.48
11.07
11.25
9.13
12.59
9.79
10.09
22.27
23.41
20.25
16.42
32.78
30.76
27.00
25.31
10.13
11.81
I
1
O
O
N o . 50.— Volume of bankers' and trade acceptances bought in open market, by months during 1920.
[In thousands of dollars.]
Year.
Federal Reserve Bank. January.
Feb-
March.
April.
May.
June. ! July.
August,
Septem- October. Novem- December.
ber.
ber.
1920
18,686
153,067
3,723
28,926
4,357
6,636
24,486
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
4,820
450
100
417
56,784
Total—1920.
1919.
1918..
1917.
1
302,452
201, 492
130,620
20,617
18,279
176,215
25,547
164,496
2,250
30,993
4,085
6,737
35,733
5,749
3,395
1,388
28,417
6,778
450
1,630
14, 791
330
436
30,364
300,307
147, 410
148,275
70,641
303,359
143,662
138,996
28,153
3,901
33,096
6,118
2,488
29,156
93,744
992
23,207
5,485
4,209
23,266
4,159
2,451
131
1,757
59,037
247,594
140,639
108,516
41,313
29,302
23,961
159,109
504
27,011
4,897
3,096
32,154
2,596
2,307
948
267
12,046
160,569
1,034
29,245
3,502
2,979
274,237
147,650
115,914
82,544
285, 753 219,464
291,915 276,485
89,580 123,574
66,864
135,230
35,420
3,216
1,425
1,757
60
22,585
24,852
22,569
115, 740 132,506
8,058
616
24,937
21,539
4,706
3,083
1,198
1,430
34,657
27,608
985
2,041
2,774
525
2,064
3,515
682
805
19,318
22,964
259,708
194,211
162,796
72,123
31,990
111,730
1,503
24,535
3,888
2,040
32,332
1,345
29,069
145, 283
8, 765
24, 046
553
2,857
532
44,684
483
2, 079
1 395
34, 570
257,989
205,048
281 833
335 262
256 705
86 894
183,132
109,046
3, 745
2, 960
27, 336
2 102
27,200
142,999
2,742
13,625
3,388
1,711
14,136
573
538
970
295
23,663
231,840
340,695
195,698
186,219
1919
304,445
23,834
360,784
141,872 1,697,330 1,211,399
9,657
14,049
41,232
18,121
294,602
261, 750
3,797
51,711
52,977
2,680
39,577
51,661
24,797
345,021
292,012
2,316
36,020
87,503
670
18,059
108,714
1,973
17,174
26,086
72
8,348
12,415
24,039
364,845
345,827
1918
194,158
945,498
77,686
122,800
70,766
45,477
122, 787
26,096
13,903
14,691
25,024
150,653
1917
91,528
464,966
85,914
91,109
58,116
26,393
66,714
29,732
33,072
26,826
35,077
68,266
n
o
253,828 3,218,364
2,825,177
400,708
155,733
1,809,539
il?077,713
178,069
00
Includes $168,411,520 of acceptances purchased from the Federal Reserve Banks of Boston and New York by other Federal Reserve Banks.
No. 51.— Volume of bankers' and trade acceptances bought in open market during 1920) by banks and maturities.
CO
[In thousands of dollars.]
o
Maturity.
Federal Keserve Bank.
Total.
Within 15
days.
Boston
New York
Philadelphia..
Cleveland
Richmond...
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco
304,445
1,697,330
41,232
294,602
51,711
39,577
345,021
36,020
18,059
17,174
8,348
364,845
137,140
801,737
2,172
21,575
2,859
1,839
64,195
13,948
Total...
3,218,364
16 to 30
days.
31 to 60
days.
13,816
46,682
251,093
3,852
37,070
12,214
8,403
29,802
1,198
1,173
1,444
1,683
54,810
82,264
298,073
12,734
118,160
16,831
12,885
123,751
5,362
5,220
11,494
4,402
157,714
1,060,151
449,424
848,890
97
504
269
61 to 90
days.
38,359
346,427
J>
c
p
22,474
117,797
19,807
16,450
127,273
15,512
11,569
3,732
1,994
138,505
fr
£
£
H
|p
C
£
p
W
859,899
a
W
o
N o . 52,— Volume of bankers1 and trade acceptances bought in open market during 1920, by months and
maturities.
[In thousands of dollars.1
Maturity.
Month.
January
February
March
April
May
June
July
August
September
October
November
December
Total—1920
1919.
Total.
W i t h i n 15
days.
16 to 30
302,452
300,308
303,359
247,594
274,237
285,753
219,464
259,708
257,989
281,832
231,840
253,828
98,755
79,909
93,209
53,757
80,924
81,130
52,692
104,343
84,968
132,689
103,271
94,504
37,904
27,993
34,902
28,330
40,572
38,646
32,381
46,168
37,313
41,261
41,422
42,532
3,218,364
1,060,151
578,751
449,424
455,779
2,825,177
i Includes $434,000 maturing after 90 days but within three months.
31 to 60
days.
61 to 90
days.
52,913
75,441
59,018
75,653
85,852
87, 620
68,603
68,456
81,672
60,596
57,176
75,890
848,890
807,326
112,880
116,965
116,230
89,854
66,889
78,357
65,788
40,741
54,036
47,286
29,971
40,902
1
859,899
983,311
1
Q
O
d
u
o
3
H
o
3
>
o
N o . 53.— Volume of acceptances bought in open market during each month in 1920,
CD
[In thousands of dollars.]
to
Bankers' acceptances.
Month.
All classes.
Total.
In the
foreign
trade.
In the
domestic
trade.
Trade acceptances.
Dollar
exchange
bills.
Total.
In the
foreign
trade.
In the
domestic
trade.
%
January
February
March
April
May
June
July
August
September
October
November
December
Total—1920.
1919.
302,452
300,308
303,359
247,594
274, 237
285,753
219,404
259,708
257,989
281, 832
231, 840
233,828
29G,965
294,009
294,301
238,951
2158,003
250,184
207,272
242,012
249,2G8
239,284
221, 071
241,212
230,180
228,091
230,951
182,702
195,295
193,373
158,499
190,985
1 6,325
203,021
1G8,742
177,657
60,785
65,918
57,350
56,189
72,768
62,811
48,773
51,027
52,943
66,263
52,929
63, f.55
2,781
2,950
4,157
1,753
2,435
5,150
2,024
5,426
6,590
10,878
9,161
11,240
2,706
3,349
4,901
6,890
3,739
24,419
10,168
12,270
2,131
1,670
1,008
1,370
2,404
3,320
4,089
6,502
2,724
22,872
9,954
1,927
935
758
1,121
204
735
250
255
3,218,3 4
2,825,177
3,079,192
2,777,313
2,307,881
2,020,888
711,311
756,425
64,545
11,306
74,627
36,558
68,876
27,289
5,751
9,269
302
29
812
388
1,015
1,547
214
12,270
o
N o . 54.— Volume of bills purchased during 1920, by rates oj discount charged.
[In thousands of dollars.]
Federal Reserve
Bank.
Boston
New York
Philadelphia
Total.
cent.
304 445
1,697,330
41,232
4i per 4 | per
cent. cent. cent.
49
341
4f per 4-Hper 4 | per 4tf per
cent.
cent. cent. cent.
5 per 531s-per 5|per ofV per 5i per 5& per 5|per 5-ft per 5§ per
cent. cent. cent. cent. cent. cent. cent.
cent.
cent.
cent.
600
62,930
1,572,
2 808
21,279 1,082
224
45
2,591
201
75
1 839
10,737
1,317
231
1,754
4,960
14,191
100 287,980
520
4,728 4,690
1,189 34,237
735
I
I
1,999 5,931
1,797 91,716
329
569
5 | per
cent.
16,858
46,240
653
Cleveland
Richmond
Atlanta
Chicago
St. Louis..
Minneapolis . . .
Kansas City
Dallas
San Francisco
Total
294,602
51,711
39,577
345 021
36,020
18,059
17,174
8 348
364,845
50
3,218,364
50
Federal Reserve Bank.
243
272
3,286
155
3/192
125
11,345
3 181
3,555
3,095
30
250
4
5,627
100
200
40
475
1,313
8,775
5,160
10,117
187
322
175
12,547
260
404
1 330
846
200
7 832
7,572
3,939
126
16
12,485
425
225
500
1,040
6,048
120
62
5,6C0
787
7,238
253
2,472
100
355
5 « per
cent.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago . . . .
St Louis
Minneapolis
Kansas Citv
Dallas
San Francisco
Total
188
380
23
150
344
491
5f per
cent.
33,259
640,845
9,341
42,637
2 178
310
878
53,549
3,201
243
cent.
216
9,127
281
9,351
87,638
515
32,363
5|per
cent.
803
200
30
51,761
226,002
6,576
90,646
225
120,374
100
2,271
5H per
cent.
673
670
1,151
22,559
2,022
84,035
3 per
sent.
6Jper
cent.
42.377
38,071
39,678
1,316
8,995
152,383
16,418
66,338
41 247
21,814
34,72 6
4,932
6,778
31.002
10,344
655
40
6 & per
cent.
35
97,478
80
f3,3!7
14,653
847,107
1,009
595,108
1 423
4*H, 038
113,752
cent.
cent.
23 362
16,503
150
3 149
210
5,706
110
61,987
2,779 17,410
10,714
1 862
130
680
3 586
210
60,006
130
607 333,578
6f per
cent.
7,021
72,582
Q>h per 6$ per
cent.
cent.
135
308
6f per
cent.
r ,636
1,085
987
100
325
3,208
100
4,100
1,691
20
108
20, 993
1, 936
50
<;,479
3 ,284
24
549
702
1,177
35
88, 008
23,783
376
17,508
155
31,688
3,3G8
136,111
5,328 160,067
51, 141
480
17,982
5 105
400
17,092
1,673
375
881
1 435
61 per
cent.
76
18,314
22,034
324
7 per
cent.
48,902
cent.
166
154
60
4 391
200
2,150
2,642
2,986
2,659
214
56,135
166
CD
OP
N o . 55.—Average rate charged on bankers' and trade acceptances purchased, by months during 1920.
[Per cent.]
Federal Reserve Bank.
Boston...
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago.
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
All banks—1920
1919
January.
February.
March.
5.23
5.11
4.93
5.13
5.00
5.00
5.11
5.06
4.89
5.07
5,09
5.08
5.48
5.53
5.55
5.55
5.59
5.29
5.60
5.33
5.13
5.57
5.61
5.53
5 88
5.75
5.89
5.82
6.07
6.08
5.87
5.62
5.10
5.58
6.08
5.80
5.90
5.77
5.94
5.81
6.03
6.08
5.87
5.69
5.07
5.69
6.08
5.82
6.02
5.92
6.01
6.00
6.06
6.08
6.04
6.03
5.07
6.08
6.25
6.00
6.15
6.06
5.99
6.03
6.08
6.08
6.12
6.20
6.06
6.08
6.08
6.00
6.09
6.04
5.88
6.01
6.08
6.08
6.13
6.17
6.08
6.08
6.08
6.03
6.13
6.01
5.87
6.00
6.08
6.08
6.09
6.18
6.11
6.08
6.25
6.01
5.10
4.28
5.53
4.24
5.80
4.24
5.82
4.24
5.96
4.24
6.07
4.24
6.06
4.25
6.04
4.25
April.
May.
June.
July.
August.
Year
1920.
Septem- October.
ber.
November.
December.
6.16
5.97
6.13
6.03
6.08
6.08
6.08
6.29
6.08
6.12
6.08
6.05,
6.22
5.96
6.10
6.05
6.08
6.08
6.11
0.16
6.08
6.59
6.08
6.05
6.52
6.41
5.61
5.87
5.98
6.65
6.71
6.60
6.78
7.41
5.98
5.98
6.09
5.99
6.04
6.03
6.08
7.10
6.17
6.25
6.12
7.10
6.08
6.06
5.98
5.81
5.89
5.83
5.93
5.85
5.93
5.68
5.50
6.27
5.97
5.79
6.04
4.25
6.05
4.26
6.45
4.47
6.08
4.84
5.85
Year
1919.
4.36
4.37
4.38
4.32
4.60
4.57
4.38
4.31
4.25
4.51
4.68
4.40
O
w
4.36
§3
o
N o . 56.—Average maturity oj bankers9 and trade acceptances purchased, by months during 1920,
[Days.]
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland.
Richmond
Atlanta .
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco.
.
....
All banks—1920...
1919
January.
February.
March.
April.
May.
June.
July.
August.
Septem- October.
ber.
November.
December.
Year
1920.
36.18
34.07
64.60
61.51
63.31
58.61
69.65
58. 48
54.77
75.96
47.24
63.71
25.93
45.11
58.47
62.38
62.84
70.34
67.15
50.16
71.12
76.00
50.86
61.07
36.12
40.72
78.37
65.03
60.09
62.48
68.02
57.70
59.21
73.40
50.23
63.87
37.87
44.98
63.79
57.02
62.11
58.43
63.03
58.66
65.30
78.56
60.27
59.15
39.15
38.06
74.03
58.83
60.04
46.03
58.91
42.18
49.34
44.59
60.11
57.03
32. 91
39. 49
50.27
56.02
47.72
66.83
64. 58
37.21
57.32
66.43
38.00
56.33
33. 78
42.20
4&96
55.18
71.68
63.30
61. 80
49.25
70. SO
00.44
59.58
59 69
34.54
26.15
42.82
48.81
51.25
44.95
56.19
39.15
78.80
49.29
55. 36
49.09
35.63
31.31
54.66
51.88
46.07
41.24
58.98
28.64
78.50
52.44
34.20
52.54
24.03
24.03
67.51
49.76
50.77
45.69
60.12
42.00
69.79
60.17
37.82
50.96
31.15
27.67
65.25
49.47
41.82
57.76
67.18
48.02
78.15
51.85
44.81
43. 03
27.64
30.65
59.85
48.50
47.46
59.94
57.46
27.70
67.84
53.88
64.71
55. 04
33.10
35.42
59.09
56.13
55.98
58. 55
62.55
48.69
64.83
56.18
50.64
56.97
47.05
55. 51
50.50
45.67
49.33
42.69
51.59
42.00
44.22
45.80
45.72
45.60
47.82
51.21
36.78
50.73
41.71
46.15
35.51
48.36
35.11
55. 55
33.43
57.11
43.83
Year
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
Q
O
O
50. 45
O
I
>
O
196
ANNUAL REPORT FEDERAL RESERVE BOARD.
N o , 57.—Rediscounts and sales oj bills between Federal Reserve Banks during 1920.
CHRONOLOGICAL TABLE.
[In thousands of dollars.]
Rediscounted or sold by Federal Reserve Bank of a—
Discounted or
purchased by
Federal Reserve
Bank of—
Date.
Boston.
New
York.
Philadelphia.
Jan 2 . . . .
Dallas
.do... .
Chicago
Jan. 3
Do
110,006
Jan. 6 . . .
Cleveland
Jan. 8
Atlanta
..do
Dallas
do. .
St. Louis
Jan. 9 . . .
Dallas
.do...
Atlanta .
1
1,100
...do
Cleveland
Jan. 12..
New York.
Jan.13 .
Dallas
Jan. 14..
60, 000
Chicago
.do....
15,000
Atlanta
10,000
...do
San Francisco
10,000
do
Cleveland
5,000
.do....
St. Louis..
Jan. 15..
Do
.do ..
Chicago. .
Atlanta
. . . Jan. 16..
Jan.19.
Dallas
Chicago
. . . Jan.20..
Do
Jan.21.
1 7,014
...do
Cleveland
Chicago
Jan. 22..
1
3, 408
San Francisco... . ...do
Jan. 23
Dallas
..do
New York
Jan. 26 .
Cleveland
1501
Jan. 27..
Do
Jan. 29..
Dallas
.do. .
Atlanta ..
30,000
Jan. 30..
Chicago
...do
10,000
Atlanta..
5,000
..do
Cleveland
5,000
.do...
Dallas
1 3, 579
...do
Boston
Feb. 2...
New York..
1579
do ..
Chicago .
...do
Dallas
Feb. 5...
Do
.do...
Chicago
Feb. 6...
Cleveland
Feb. 9...
Atlanta
.do....
Dallas
.do ..
Chicago .
...do
Do
.do.... 1 5,036
Cleveland .
...do
15,087
Atlanta
1
5,049
do .
Kansas City
Feb. 13..
Do
do ..
Dallas
- • i
...do
Minneapolis
1
Feb. 16..
Chicago
..do
Dallas
do.
New Y ork.
Feb. 19..
Atlanta
do.
Chicago
Kansas City.
.
..do
Dallas
do
. .
Feb. 24 .
Do . .
do
Minneapolis
Dallas
Feb. 26
do
i
Cleveland
:
Minneapolis
Feb. 27..
Mar. 1...
Dallas
i
do
Kanssis City
1
. .do...
Minneapolis.
Mar. 3
New York
Mar. 5 .
Boston
20,000
do
Minneapolis
Mar. 8..
Cleveland
do..
Dallas
Mar. 9 . . .
Minneapolis
..do
New York.
Cleveland.
Richmond.
City.
9,000
3,000
5,000
5,000
5,000
4,500
4,500
5,000
2,000
120
1200
5,000
2,500
3, 500
5,000
5,000
8,000
5,000
4,000
5,000
5,000
5,000
15
4,666
5,000
5, 000
5,000
5,000
9,000
5,000
5,000
0,500
3, 600
5,000
5,000
6,000
!
i
5,000
7,000
5,000
7,500
6,500
1
. -
1
115
2,000
i, 000
5,000
5. ono
1
/. 500
3,000
9,000
5,000
1,000
2,500
5,000
4,500
1 50
3,503
6,500
5,000
3,000
0; Amounts represent bills rediscounted unless marked with footnote 1.
San
Francisco.
Chicago. Kansas
125
1 Acceptances sold.
197
DISCOUNT AND OPEN-MARKET OPERATIONS.
No. 57.—Rediscounts and sales of bills between Federal Reserve Banks during 1920—Con.
CHRONOLOGICAL TABLE—Continued.
[In thousands of dollars.]
Rediscounted or sold by Federal Reserve Bank of «—
Discounted or
purchased by
Federal Reserve
Bank of—
Dallas
Kansas City
Cleveland
Boston
Do
Cleveland
Dallas
New York
Boston
Cleveland
Minneapolis....
Boston
Cleveland
Minneapolis .
Cleveland
Dallas
Boston
Atlanta
Cleveland
Dallas
New York
Cleveland
Minneapolis
Dallas
Cleveland
San Francisco
New York
Do
Boston
Do
Dallas
Cleveland
Boston
Cleveland
Boston
Cleveland
Boston
New York
Cleveland
Dallas
New York
Cleveland
Boston . . .
Cleveland
Do
New York
Cleveland
New York
Do
San Francisco..
Boston
New York
Boston
New York
Do
Cleveland
New York
Boston
New York..
Cleveland
Do
Boston
New York
Cleveland
Boston
_
Cleveland
New York
Do
Do
Cleveland
New York
Date.
RichNew PhilaAtdelYork. phia.
mond. lanta.
4,000
Mar. 11
5,000
do
5,000
...do
Mar. 12
...do
10^000
Mar. 18
10,000
do
6,000
3,000
do . .
. .do
5,000
Mar. 19
Mar. 22 16,666* 5,000
7,500
...do
do
16,666*
Mar. 23
do . .
Mar 24
do
Mar.
Mar.
do
...do
Mar.
do
Apr.
do
...do
Apr.
do
Apr.
Apr.
Apr.
Apr.
.do
Apr.
Apr
...do
Apr.
26
29
12,000
3,000
5,000
31
.
1
2
3
5
8
9
5,000
5,000
5,000
2,529
5,000
5,000
5,000
5,000
5,000
5,000
10, 000
5,000
3,000
2 871
4,000
13
"37666"
Apr. 15
Apr 16
4 500
5,000
do
dn
AnApr. 21
Apr. 22
do
Apr. 23
Apr 24
do
Apr. 26
Apr. 27 Apr. 28
Apr. 29
. do
Apr. 30
May 3 ]
do
do
May 5
May 6
...do
. do... .
May 7
May 10
...do
May 12
May 13
do.. .
May 14
5,000
10,000
10
12
j A p r 20
7,500
5,003
5,000
5,000
7,500
13,000
do
do
14
5,000
l
do
'
Apr. 19
San
Min- KanSt.
sas Dallas. Fran*
Louis. neapcisco.
olis. City.
Chicago.
16,000
7,000
5,000
10,000
5,000
5,000
.5,000
6,000
3,500
4,000
5,000
10,000
5,000
5,000
5,000
5,000
5,000
5,666*
10,000
3,000
10,000
5,500
! 5.000
5,000
1
10 000
3,500
3,000
'
3,000
5.000
'
1,000
6,000
1
4,000
3,000
16,058
6,000
8,000
10,000
10,000
5,000
"16," 666"
5,000
5.000
1
5,000
6,000
3,500
5,000
*3," 5O6"
6,000
5,000
5,000
10,000
"16," 666*
5,000
3, 000
5,000
2,000
2,000
3,000
2,000
5,000
a Amounts represent bills rediscounted unless marked with footnote 1.
5,000
1,000
4,000
7,000 -
Acceptances sold.
198
ANNUAL REPORT FEDERAL RESERVE BOARD.
No. 57.—Rediscounts and sales of bills between Federal Reserve Banks during 1920—Con.
CHRONOLOGICAL TABLE—Continued.
[In thousands of dollars.]
Rediscounted or sold by Federal Reserve Bank of a—
Discounted or purchased by Federal
Reserve Bank of—
Boston.
New York
Cleveland
Do
Do
New York
Cleveland
New York
Cleveland
New York
Boston
New York
Do
Cleveland
Boston
New York
Cleveland
New York
Cleveland
New York
Cleveland
New York
Do
Cleveland
Do
New York
Do
Boston
New York
Cleveland
Do
Boston
New York
Cleveland
Boston
Cleveland
Boston
Cleveland
New York
Cleveland
Do
Boston
New York
Cleveland
New York
Cleveland
New York
Do
Do
Do
Cleveland
New York
Boston
New York
Cleveland
Do
New York
Boston
Cleveland
Boston
Cleveland
Boston
Do
San Francisco
Cleveland
New York
Cleveland
Boston
Cleveland
Philadelphia
Cleveland
Boston
Cleveland
New York
Do
Date.
New
York.
May 17
...do
...do
May 18..
May 19..
May 20
...do
May 21..
May22..
May24..
May 25..
...do
May26..
...do
May 27
...do
...do
May28..
...do
May29..
...do
...do
J u n e l . . ']
...do
June 2 . .
Richmond.
5, 000
"
.
5,000
3,000
5,000 '
7,000
f, 000
13,000
10,000
5,000
5,000
...
.. .J
8, 000
3,000
'
Q nnn
'
3,000
2,500
5,000
U1
1,500
5,000
2,000
10,000
5,000
5,000
4,000
1
3,000
3,000
1,500
4,000
4,000
10,000
4,000
50
4,000
j
3,500
5,000
400
5,000
2,000
5,000
2.500
5,000
..
7,000
2,500
10.000
2,500
*"io,"666"
10, 000
5,000
3,000
2, 750
200
100
June 22..
June 23.. i 5,003
. .do ...
...do
June 25 .
June 26..
June 28..
...do
June 29..
...do
June 30
Julyl...
...do
...do
July 2 ..
do !
July 6..J
do 7...1 110,014
July
do
July 8
7,000
10.000
10 000
June 21..I
...do.....
3,000
O
*
i
2,500
4,000
5,000
. . """
5,000
3,500
O KTtf\
..
5,000
2,000
5. OftO
300
3,000
10,000
June 10..
...do
June II..1
...do
June 12..
...do
June 3 4..;..
June 15..
...do
...do ...J
June 16.. .
...do
June 17
June 18
June 19..
2,000
7,000
4 250
600
2,000
2,500
4,000
15,000
10,000
3,000
3,000
3,000
6,000
1,500
3, 502
5,000
1,500
8,000
10,000
6,000
10, 000
3, 000
12,000
8,000
2,000
10,000
74*6"
5,000
10,000
9,000
1,262
1,619
5,000
2,000
4, 007
6,010
""5,'666* ""*2," 5O6"
1, 500
2,500
3,500
3,025
2,000
4,000
Q £7Q
a Amounts represent bills rediscounted unless marked with footnote 1.
7,500
2,500
June 8.. J
June 9... i.
.do. . .
...do
i
do
Minne- -Kansas Dallas.
apolis.
City.
10,000
June 3..
June 4... i
June 5
...do
June 7.. J
July 9..
July 10..
St.
Atlanta. Chicago. Louis.
l
Acceptances sold.
199
DISCOUNT AND OPEN-MARKET OPERATIONS.
No. 57.—Rediscounts and sales of bills between Federal Reserve Banks during 1920—Con.
CHRONOLOGICAL TABLE—Continued.
[In thousands of dollars.]
Discounted orpurchased by Federal R e s e r v e
Bank of—
Boston
Cleveland
Boston
Cleveland
Boston
...
New Y ork
Do
Cleveland
Boston
Cleveland
Boston
. .
New York
Cleveland
San Fraiicisco
New York
Boston
New York
Cleveland
New York
Boston
San Francisco
Cleveland
Boston
Cleveland.
New York
Cleveland.
Boston
New York
Cleveland
Boston
Cleveland.
New York
Cleveland
Boston.
Cleveland
Boston.
Do
Cleveland
Boston
Cleveland
Boston
Cleveland
Boston. .
Cleveland
Boston
Cleveland.. .
Do
Boston
Cleveland
Ran Francisco.
Boston
Cleveland
Boston
Cleveland..
Boston
Cleveland
Boston.
Do.
CJrvoland.
Boston
Cleveland
Do
Boston
New York
CJev^and-.
Ban Francisco
Cleveland
Boston
Cleveland.
Philadelphia....
Cleveland.
Rediscounted or sold by Federal Reserve Bank of «—
Date.
July
...do
July
do
July
do
July
. do
do
July
...do
July
...do
July
...do
July
July
do
New
Boston. York.
Richmond.
10,000
12
14
1,269
15
2,000
5,000
16
. .
20
21
*75
9,000
10,001
3,000
3,000
4,012
3,512
2
10 000
do.
do
4,999
1,048
10,000
Aug. 6
2,025
2,064
do
Aug. 7
do
Aug. 9
Aug. 10
Aug. 11
.do.
Aug. 12
Aue. 13
4,000
1,500
4,979
1,000
867
do
15,012
.do.
Auf. 11
...do
Aug. 16
. do.
Au?. 17
10,000
do
2,500
.do
3,000
An" 2)
.do.
Aug. 21
Aug. 23
do..
do
15,002
5,000
110 051
2,500
1,000
3,000
3,000
2,000
*"3*566"
""i'soo"
3,500
3,003
2,000
1,500
1,500
762
1
7,000
2.999
5,000
3,000
10.000
do
5,000
1 2.000
3,000
3,510
.do..
Aug. 24
Aug. 25
5,000
4,002
3,500
5,000
4,706
i*ug. IS
Au<*. 19
4,000
2,000
6,000
4,000
1,500
2,250
10 000
2,500
4,000
1,000
3,000
5,000
6,004
2,000
1,000
10,000
115,050
3,000
4,000
3,511
1,000
3,992
do
2 616
3,010
1,000
1,899
do
Aug. 4
Aug 5
5,000
2,500
1,500
3,000
5,000
Aug. 3
2,000
3,000
1,428
10 000
do
1,000
1 500
2,500
2,000
July 31
.do..
Aug. 2
7,000
762
July 30
2.000
3,000
18,001
do
\
Am rails r3£>?3S3nt bills r^discoanted un.oi3 marked with, fjotnoto 1.
14
2,500
3,550
1,055
do
45525°—21
1,250
1,662
5,003
5,500
2,000
4,000
5,000
1,562
5,000
do
July 24
July 26
.do.
July 27
July 28
do
July 29
1,500
5,000
1
22
23
1,500
4,000
4,000
3,058
10,001
4,500
2,500
1,500
1
10,000
10, 000
Minne- Kansas
St.
Louis. apolis. City. Dallas.
3,000
1,250
19
-Au". 20
Chicago.
Atlanta.
1,300
1,702
i
1
2,000
5,500
1 Acceptances sold.
200
ANNUAL REPORT FEDERAL RESERVE BOARD.
No. 57.—Rediscounts and sales of bills between Federal Reserve Banks during 1920—Con.
CHRONOLOGICAL TABLE—Continued.
[In thousands of dollars.]
Rediscounted or sold by Federal Reserve Bank of a—
Discounted or purchased by Federal
Reserve Bank of—
Date.
Boston
Aug. 27
Cleveland
...do
Boston
Aug. 30
Cleveland
...do
Boston
Aug. 31
...do....
Cleveland
Sept. 1
Boston
...do
Cleveland
Do
. . . Sept. 2
Boston
Sept. 3
...do..
Cleveland
Sept. 4
Do
Boston
Sept. 7
...do
Philadelphia
Cleveland
. .do..
Do
Sept. 8
Boston..
Sept. 9
...do
Cleveland
Sept. 10
New York
Cleveland
...do....
Do
Sept. 11
Boston
Sept. 13
Philadelphia
...do. .
Cleveland
...do....
Philadelphia
Sept. 14
Boston
Sept. 15
.. .do
Cleveland
Boston
Sept. 16
...do
Cleveland
Boston
Sept. 17
Philadelphia
...do
Cleveland
do. ..
Boston
Sept. 18
Philadelphia
.do.. .
Cleveland
...do
Philadelphia
Cleveland
Boston
Philadelphia
Cleveland
Philadelphia
Cleveland
Boston
Cleveland
Boston
Cleveland
Philadelphia
Cleveland
New \ ork
Cleveland
Boston
Cleveland
Boston
New York
Philadelphia
Cleveland
Boston
Cleveland
Do
Boston
Cleveland
Philadelphia
Cleveland
Boston
Philadelphia
Cleveland
Boston.
Cleveland
Boston
Philadelphia
Cleveland
Do
Boston
Cleveland
New
York.
10,000
10,000
15,000
5,000
10,000
...do
Sept. 30
Oct. 1
...do
Oct. 2
Oct. 4
.. do
Oct. 5 110,072
...do
Oct. 6
do...
.do
Oct. 7
...do
Oct. 8
do ..
...do
Oct 9
Oct. 11
. do
Atlanta.
St.
Chicago. Louis.
1,758
3,000
5,000
1,000
2,000
3,000
4,999
3,999
2,000
4,000
3,000
2,000
2,750
4,000
7,000
Ul
2,754
2,002
2,146
3,000
5,000
4,000
5,008
7,000
4,000
4,500
5,000
5,000
5,000
2,266
1,725
5,000
3 750
5,000
3,002
4,999
3,000
6,000
6,000
5,000
5,000
5,000
5,000
3,000
10,000
5,000
10,000
5,000
1 800
1,707
2,693
1,400
2,800
10,000
5,000
3,000
11,009
1,000
5,046
3,500
1,500
1 000
5,000
7,000
3,500
4,000
12,000
10,000
1
10,001
10,000
3,000
2,500
3,000
4,250
3,160
5,004
***3*284*
3,003
5,000
""5," 666'
10,000
5,000
5,000
3,000
1,300
2,016
3,500
"*4,*998*
2,000
i, 666
4,000
4,000
2,200
4,000
9,000
6,000
1,608
"**3*666*
i,009
500
Amounts represent bills rediscounted unless marked with footnote 1.
5,000
3,666
2,052
797
"16,666*
5,002
7,000
3,500
20,000
5,000
5,000
Minne- Kansas
apolis.
City. Dallas.
10,000
4,999
2,030
2,750
20,000
10,000
...do
...do...
Sept. 21
...do . . .
...do
Sept. 22
...do
Sept. 23
...do
Sept. 24
. do
Sept. 25
...do
Sept. 27
...do
Sept. 28
do
Sept. 29
.
Richmond.
1,000
3,062
6,010
7,500
4,500
2,000
2,500
4,000
l
4,010
Acceptances sold.
201
DISCOUNT AND OPEN-MARKET OPERATIONS.
N o . 57.—Rediscounts and sales of bills between Federal Reserve Banks during 1920—Oon.
CHRONOLOGICAL TABLE—Continued.
[In thousands of dollars.]
Rediscounted or sold b y Federal Reserve B a n k of a—
Discounted or purchased by Federal
Reserve Bank of—
Boston
Cleveland
Do
Boston
Philadelphia
Cleveland
Do
Boston
Cleveland
Boston
Cleveland
Boston
Cleveland
Do
Boston
Philadelphia
Cleveland
Philadelphia
Do
Boston
Boston
Do
Boston
Philadelphia
Cleveland
Philadelphia
Cleveland
Philadelphia
Cleveland
Philadelphia
Cleveland
Do
Boston
Cleveland
Boston
Cleveland
Boston
Do
Cleveland
Boston
Cleveland
Philadelphia .
Cleveland
Boston
Cleveland
Do
Do
Do
Do
Do
San Francisco
Boston
Cleveland
Do
Do
Do
Date.
New
York.
Oct. 1 3 . . . . . . . . . . .
do
Oct. 14
Oct. 1 5 . . 1 15,074
do
do
..
Oct. 16
Oct. 18
.do
Oct. 19..
do
Oct 20
do
Oct. 2 1 . .
Oct. 22.. 10,000
5,000
do
10,000
...do
Oct 25
...do
do
Oct. 26..
Oct 27
do
Oct. 28
do....
Oct. 29.. 15,0*00
10 000
do
Oct. 30..
Nov. 1
do .
do
Nov 3
do
..do
10,000
Nov. 4
. . . d o . . . 15,000
Nov 5
1
.do
5,012
do
Nov 6
Nov. 8 . .
do
Nov. 9
do
Nov. 10
do
Nov. 11. 15,000
. . . d o . . . 15,000
Nov. 12. i 7,017
do
Nov. 1 3 .
Nov 15
...do
Nov. 16
do
Nov. 17
. do
Nov. 18
do
Nov. 19.
Nov. 20.
Nov. 22.
Nov. 2 3 .
Nov. 24.
16 917
do
Nov. 2 6 .
do
Nov. 2 7 .
N o v . 29.
Nov. 30.
Richmond.
A t l a n t a . Chicago.
St.
Louis.
Kansas
City.
Dallas.
5,001
15,000
"*7,*048'
**"5,'566"
1
5,005
4,006
13,000
5,000
6,500
3,500
4,000
5,000
1.976
1
5,000
3,500
3,000
1*. 500
5,000
3,125
1,500
2,000
2,088
1,000
5,000
3,999
4,000
4,584
3,500
1,500
2,292
1,000
3,000
3,003
2,500
4,001
5,049
5,000
4,000
636
10,000
804
4,000
5,000
13,000
4 020
1,655
3,000
2,504
2,000
2,587
6,000
5,003
2,000
7,000
5,000
2, 002
5,000
10 000
2,000
3,148
4 507
4,000
1,414
2,000
5,000
2,000
3 03i
2,500
2,000
3 253
10,000
4,000
*3*507*
2 000
2 050
5,000
6,000
5,000
1,500
1 000
1 52K
700
2,000
3,343
5,003
2,000
2,024
5,000
1,008
5700O
2,000
2 003
800
2,500
1,500
10 000
4,200
2,077
2,200
4,850
3,000
2,422
10,000
4,000
1,500
3,000
2,500
8,000
5,000
8,000
2,000
"**i,*8o6'
3,000
"*3,'666
2^009
2,000
4,059
a Amounts represent bills rediscounted unless marked with footnote 1.
Minneapolis.
l
"*7,'6i4*
3,000
1,600
3,500
Acceptances sold.
;02
ANNUAL REPORT FEDERAL RESERVE EOARD.
No. 57.—Rediscounts and sales of bills between Federal Reserve Banks during 1920—Con.
CHRONOLOGICAL TABLE—Continued.
[In thousands of dollars.]
Rediscounted or sold by Federal Reserve Bank of«—
Discounted or purchased by Federal
Reserve Bank of—
P h iladpi r> hia
Cleveland .
Philadelphia
Boston
Philadelphia
Cleveland
Philadelphia
.
Philadelphia
Cleveland
Do
Philadelphia
Do
Date.
^
Dec 1
.do. .
DPP. 2 ..
Dec. 3 . . . 10,000
...do
do. .
Dec. 4 . . .
do
!
Dec. 6
...do....
Dec. ?...
Dec 8
.do
3,000
2,002
1,000
3,800
2,752
18
do
200
10,000
Philadelphia
do
Philadelphia
Do
Do
Philadelphia
J) o
Boston
Cleveland
•
---
Dec. 21..
...do
Dec. 22..
.do. .
Dec. 23.. 10,000
...do
. .do.
Dec. 24
Dec. 27..
Dec. 28..
...do
Dec. 29..
Dec. 30.. 10,000
. do. . .
Dec. 31..
...do
1,000
11,000
1,500
4,500
il
7,000
3,800
500
1,200
4,506
1,500
4,000
3,000
1,800
3,600
3,000
1,500
a Amounts represent bills rediscounted unless marked with footnote 1.
3,500
2,010
5,013
1,312
Dec. 15..
...do
Dec. 16..
Dec. 17..
Dec. 20..
...do
Philadelphia
Cleveland ..
Philadelphia
2,001
3,009
3,001
do
Cleveland
Do
Do.
8,012
i
3,041
1,680
1,600
Dec. 11..
do
...do
Dec. 13..
.do
Dec. 14
Kansas
• 4 500
3,000
1,000
1,500
do
Dec. 9
Dec. 10..
Cleveland
Philadelphia
NPW Yorlc
Cleveland
! Atlanta. Chicago ^
4,000
3,000
2,500
4,033
3,003
3,000
2,500
7,500
2,013
5,009
2,001
3,666
3,500
9,041
4,001
4,000
2,666"
1,000
1,500
4,002
2.500
1
6,000
5,000
8,000
4,000
5;0C0
Acceptances sold.
M
N o . 48.—Average rate charged on bills discounted, by months during 1920.
[Per cent.J
Federal Reserve
Bank.
Boston
New York
Philadelphia
Cleveland. .
Richmond
Atlanta
Chicago
St Louis
Minneapolis
Kansas City
Dallas
San Francisco
All hanks—1920..
1919..
1918..
January.
February.
4.89
4.86
4.83
4.92
4.96
4.92
4.86
4.88
5.05
5.52
4.78
4.81
5.54
5.42
5.46
5.46
5.50
5.55
4.90
4.18
4.02
5.52
4.14
4.02
5.63
5.62
5.70
5.79
5.32
5.55
March.
April.
5.68
5.53
5.44
5.58
5.63
5.60
5.48
5.46
5.71
5.59
5.67
5.79
5.68
May.
5.60
5.56
5.43
5.64
5.58
5.72
5.85
5.67
5.77
5.80
5.59
5.77
5.78
5.81
6.55
5.66
5.70
5.70
5.73
5.84
5.64
4.15
5.67
4.18
4.23
5.74
4.16
4.35
4.08
5.78
5.89
6.81
June.
July.
6.24
6.19
5.51
5.75
5.95
6.31
6.25
5.54
5.84
5.96
5.82
6.64
5.94
5.94
6.65
August. September.
6.47
6.25
5.57
5.81
5.96
6.04
6.65
6.50
6.47
5.58
5.82
5.98
6.04
6.04
6.77
6.62
5.84
G. 76
G.06
6.80
6.45
6.81
6.78
5.87
5.95
5.76
5.93
5.96
5.88
5.97
6.20
4.19
4.42
0.21
4.14
4.37
6.19
4.12
4.25
6.39
4.18
4.24
6.78
6.72
5.95
OO
CO
November.
December.
6.44
6.52
6.47
5.59
5.88
5.98
6.22
6.72
6.10
6.81
7.13
5.91
6.41
5.61
5.87
5.98
6.65
6.60
6.51
October.
6.71
6.60
6.78
7.41
5.67
5.87
5.99
6.46
0.75
7-08
6.77
7.15
5.98
5.98
5.96
5.98
6.40
4.19
4.21
6.45
4.53
4.20
6.49
4.07
4.18
5.98
Year
1920.
Year
1919.
6.03
4.25
4.14
5.97
5.44
5.66
5.78
4.13
4.24
4.32
4.25
4.35
5.97
6.32
5.98
6.40
6.65
5.78
5.82
Year
1918.
4.17
4.06
4.09
4.21
4.38
4.06
4.24
4.26
4.54
4.74
4.46
4.27
4.72
4.80
4.55
4.50
4.54
6.02
4.26
4. 20
1
N o . 49.—Average maturity of bills discounted, by months during 1920.
[Days.]
Federal Reserve Bank. January. February March.
Boston
New York...
Philadelphia
Cleveland...
Richmond...
Atlanta
Chicago
St. Louis
12.59
9.63
14.87
17.20
10.93
20.80
25.14
19.44
14.36
15.95
7.32
7.11
12.56
11.66
17.71
7.79
11.26
11.83
21.91
25.40
30.90
35.15
19.32
18.29
April.
12. 88
8.93
16.39
17.56
12.25
26.68 I
32.18 j
23.47 |
lay.
June.
12.27
12.99
8.66
13.54
7.10
12.32
16.20
12.40
27.85
1-7.31
15. 74
31.23
28.86
25.59
35.75
26.38
July.
14.26
G. 76
13.98
21.86
16.76
28. 91
34.36
30.13
August. September.
October
November.
December.
11.73
12.81
12.37
12.18
13.12
7.37
7.63
6.95
5.79
10.00
16.42
10.93
15.93
14.37
25.17
15.29
26.21
34.76
27.25
Year
Year
Year
1920.
1919.
1918.
13.14
7.34
13.24
13.12
18.93
7.31
16.51
17.51
15.82
6.30
12.92
19.43
15.42
14.57
15.25
13.66
11.18
14.74
13. 75
39.39
25.20
38.42
22.97
36.78
25. 73
39.24
25.26
34.74
19.33
10.40
19.01
18.59
27.59
26.40
25.29
26.88
24.77
13.12
19.89
16.45
7.20
7.29
14.06
10. CO
17. 83
DISCOUNT AND OPEN-MARKET OPERATIONS.
203
No. 57.—Rediscounts and sales of bills between Federal Reserve Banks during 1920—Con.
SUMMARY, BY MONTHS DURING 1920.
[In thousands of dollars.]
Rediscounted or sold by Federal Reserve Bank of—
Total.
Discounted
bills.
January
February
March
April
May
June
July
August
September
October
November
December
Total
Philadelphia.
Cleveland.
Richmond.
DisDis- I Purcounted chased counted
bills.
bills.
bills.
Purchased
bills.
Dis- j Discounted counted
bills.
billr.
New York.
Boston.
Month.
Purchased
bills.
270,000
115,600
208,029
327,500
270, 302
272, 852
320,641
297, 561
440,155
393,101
293, 062
251,442
Purchased
bills.
25,833
20, 856
79
18,429
150,000
20,841
5,014
45,102
43,121
10,012
25,146
18,946
9
3,460,245 212, 547
25,608
65,000
2,371
25,000
85,000
115,600
100, 500
67,000
3,500
50
5,003
35,026
35,115
55,000
50,000
55,000
20, 846
25,146
18,946
375,000
Atlanta.
147,215 371,600
20,000
75,000
75,000
90,000
95, 000
80,000
95,000
65,000
40,000
40,000
13, 802
20,852
33,307
42,071
52,178
38,488
53,047
54,252
700,000
307,997
Rediscounted or sold by Federal Reserve Bank of—
Chicago.
Month.
Discounted
bills.
January
February..
March
April
May
June
July
August
September.
October
November.
December..
Total
Purchased
bills.
St. Louis.
Discounted
bills.
Purchased
bills.
Minneapolis.
Kansas
City.
FranDallas. San
cisco.
Discounted
bills.
Discounted
bills.
Discounted
bills.
10,000
5,000
73,500
53,000
46,000
47,500
20,000
10,000
255,000
11
10,076
8,001
10,012
17,529
67,500
35,000
8,000
35,999
47,977
47,997
45,497
4,000
28,178
309,499
Purchased
bills.
200
6,000
18,500
40,000
44,000
26,000
35,500
33,000
38,500
31,000
27,000
22,000
32,000
42,000
27,074
26,511
57,230
71,616
57,015
66,190
4,000
18,000
22,000
55,761
65,502
79,750
74,000
53,00064,000
10,058
6,000
293,500
411,636
436,013
10, 258
204
ANNUAL REPORT FEDERAL RESERVE BOARD.
No, 57.—Rediscounts and sales of bills between Federal Reserve Banks during 1920—Con.
SUMMARY FOR T H E YEAR, BY F E D E R A L R E S E R V E BANKS.
[In thousands of dollars.]
Rediscounted or sold by all
Federal Reserve Banks combined.
Discounted or
purchased by
Federal Reserve
Bank of—
Rediscounted or sold by Federal Reserve Bank of—
Boston.
Discounted
bills.
Total.
Purchased
bills.
Purchased
bills.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas .
San Francisco
Total
1,000,557
490,648
179, 728
1,478, 882
969,884
479,581
144,579
1,406,172
30,673
11,067
35,149
72; 710
5,036
57,087
173,590
13,000
40,029
25,049
143,000
71,222
52,000
168,500
13,000
40,029
20,000
143,000
23,500
5,087
5,090
5,087
5,090
5,049
5,049
47,722
3,672,792
3,460,245
212,547
New York.
Discounted
bills.
Purchased
bills.
110,000
30,673
15,000
115,000
35,149
33,671
584
20,846
25,000
90,000
5,000
Philadelphia.
Cleveland.
Richmond.
Discounted
bills.
Purchased
bills.
Discounted
bills.
56,500
31,000
50
40,100
17,000
58 500
8,000
37,500
20,000
103 000
5 000
10,000
47,722
375,000
147,215
371,600
370,000
15,000
30,000
230,000
10,000
10,000
35,000
50
700,000
Rediscounted or sold by Federal Reserve Bank of—
Discounted or Atlanta.
purchased by
Federal Reserve
Minneapolis.
Kansas
City.
Dallas.
San
Francisco.
Purchased
bills.
Discounted
bills.
Discounted
bills.
Discounted
bills.
Purchased
bills.
6,000
77,500
46,000
19,000
151,000
121,914
77,025
23,102
179,595
75,000
67,511
2,500
290,002
St. Louis.
Chicago.
Bank of—
Boston
New York
Philadelphia .
Cleveland
Richmond
Purchased
bills.
Discounted
bills.
Discounted
bills.
18,999
41,045
29 977
217,976
6,000
142,000
iih'
107,000
28,003
Discounted
bills.
133,971
60,000
25,000
75,499
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City .
Dallas
San Francisco
Total
10,258
10,000
2 529
1,000
12 500
307,997
255,000
28,178
309, 499
6,000
293,500
411,636
436,013
10,258
No. 58.— Volume of United States certificates oj indebtedness purchased, by months during 1920.
[In thousands of dollars.]
Distribution by classes.
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total—1920
1919
1918
January.
February.
23,793
156,217
5,238
85,077
14,000
889
306,625
3,390
13,p80
29,534
1
4,532
34,345
98,005
11,398
22,025
9,000
5,000
53,642
4,657
2,063
29,791
9,000
25,370
March.
April.
6,493 83,264
653,869 754,010
388 26,513
183,500 47,016
13,000 27,000
1
4,000
241,632
727
13,186 10,958
74,310 19,087
2,966
47,909
9,000
117,000
141,100 16,601
894
35,775
1,494
3,347
464
11
158
580
June.
July.
53,476 62,763
762,769 382,799
28,510 61,286
84,528 13,350
8,000
4,000
3,000
3,150
34,437
861
27,168
1,016
25,321
1,821
9,226
5,270
31,370
118,640 40,203
DecemAugust. Septem- October. November.
ber.
26,621 60,103
56,404 669,964
9,063
29,694
1,875 134,518
1
1,000
2,369
788
40
1,243
50
4,237
2,951
3,997
2,128
292
1,000
Total.
Temporary certificates
purAll
chased other.
from U.S.
Treasurer.
46,817 70,310 84,257 553,136 471,000 82,136
76,660 153,007 481,851 4,281,330 3,836,000 445,330
23,576 145,052 15,171 357,383 311,000 46,383
5,000 90,000 211,700 878,589 831,000 47,589
1
4,000
8,000
84,000
84,002
2
1,007
18,897
1,000
17,000
1,897
20,528 60,147 118,387 847,942 800,000 47,942
7,300
408
1,311
59,000 15,488
74,488
4,049 141,696 140,000
485
106
1,696
1,731 128,079 112,000 16,079
3,301
107
3,000 176,691 176,000
1,000
691
1,152 71,242 15,799 445,745 425,000 20,745
642,376 304,296 1,496,387 997,143 42,723 1,178,445 584,519 124,321 890,306 182, 927 600,282 944,253 17,987,978 7,262,000 725,978
828,447 326,327
88,694 83,842 86,537 150,808 232,845 180,874 1,870,088 72,453 58,887 758,361 [4,736,163
511,542 518,192 1,089,232 321,326 184,426 415,800 21,797 30,222 85,582 631,044 219,309 1,747,880 5,776,352
Distribution by classes of certificates purchased in 1920:
Temporary certificates purchased from U. S. Treasurer. 599,000 279,000 1,482,000 982,000
Allother
43,376 25,296
14,387 15,143
May.
42,723
1,093,000 533,000
85,445 51,519
61,000 726,000 135,000 555,000 817,000
63,321 164,306 47,927 45,282 127,253
7,262,000
725,978
GOLD SETTLEMENT FUND.
O
No. 59.—Summary oj transactions, Jan. 1 to Dec. Sl7 1920,
FEDERAL RESERVE BANKS' FUND.
[In thousands of dollars.]
Federal Reserve Bank.
Balance
Dec. 31,
1919.
Gold withdrawals.
Gold
deposits.
Boston
New York
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City
Dallas
San Francisco
34,351
5,957
31,679
43,848
25,201
19,333
76,479
17,898
4,872
25,933
17,077
27,109
34,617
6,319
7,042
25,858
226,634
40,514
454,544
106,382
29,389
91,432
89,637
79,997
61,096
15,946
18,299
44,099
155,605
Total...
329,737
539,684
1,186,940
7,434
115,371
8,984
84,905
11,949
3,486
7,085
Aggregate
withdrawals deposits
and
and transfers transfers
from
to agents' agents' fund.
fund.
1,685,525 I
7,551,585
7,551,585
Net debits. Total debits. Total credits Net credits.
6, G30,498
7,194,903
23,1G2,832
22,598,293
8,078.222
8,134,782 1
3
$
1,255,627
687,526
991,508
844,222
393,307
554,108
365,262
363,610
469,080
688,293
140,096
Settlements from Jan. 1,1920, to Dec. 31,1920, inclusive.
564,539
Credits.
1,290,726
1,008,316
659,311
1,671,017
749,060
219,409
431,080
110,787
274,027
456,133
574,760
106,959
Federal Reserve Bank.
Boston
New York
Philadelphia
Debits.
110,514 j
602,544
127,382
29,389
91,432
100,737
154,997
89,596
21,046
20,299
50,099
287,490
177,434
245,371
193,484
156,905
85,449
96,286
97,085
92,617
10,319
31,042
43,358
428,634
1,657,984 I
Interbank transfers.
5G4,405
50,560
Balance in
fund at
close of
business
Dec. 31,
1920.
Net changes in ownership of gold through
transfers and settlements.
Decrease.
72,685
40,116
45,902
50,352 I
Increase.
317.228
84,775
I
i
w
o
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
San Francisco.
105,917
190,240
221,371
247,589
96,726
4,180
135,277
1,505,839
Total.
7,005,731
7,246,874
2,851,506
11,349,455
6,342,105
1,920,682
4,728,472
2,939,973
2,817,870
7,845,923
7,140,957
2,661,266
11,128,084
6,094,516
1,823,956
4,724,292
2,804,696
2,922,492
840,192
104,622
77,015
20,429
7,442
36,048
21.763
8,456
23,957
2,074
23,724
85,074,220
85,074,220
1,555,839
357,278
160,683
10,755
16,342
98,343
6,886
7,143
8,767
21,744
137,759
471,555
471,555
O
o
FEDERAL RESERVE AGENTS' FUND.
[In thousands of dollars.]
Federal Reserve Agent at-
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.,
Total
Balance
Dec. 31,
1919.
Gold
withdrawals.
60,000
110,000
74,389
75,000
38,000
58,000
235,144
53,931
19,800
37,360
14,484
110,219
150,000
57,000
125,000
12,000
95,000
85,700
233,000
106,000
7,500
62,000
47,000
80,500
886,327
1,060,700
Gold
deposits.
100,000
8,500
Total
deposits,
including
transfers
from. bank.
11,100
75,000
28,500
5,100
2,000
6,000
131,885
184,500
72,060
73,500
92,800
90,000
58,000
4,000
24,000
17,500
202,000
220,000
205,000
146,000
12,000
95,000
96,800
308,000
134,500
12,600
64,000
53,000
212,385
270,000
130,000
193,000
72,000
108,000
92,800
261,000
120,100
4,000
64,000
52,750
202,000
110,000
35,000
121,389
135,000
51,000
54,000
188,144
39,531
11,200
37,360
14,234
99;834
498,585
1,118,300
1,559,285
1,569,050
896,692
70,000
148,000
21,000
34,500
171,000
62, 100
40,000
35, 250
451,350
Balance at
close of
business
Dec. 31,
1920.
Total
withdrawals,
including
transfers
to bank.
Gold
transfers
to bank.
Gold
transfers
from bank.
170,000
130,000
o
GO,—Weekly operations through the banks' gold settlement jund during 1920.
fcO
o
oo
[In thousands of dollars.]
All Federal Reserve Banks.
Federal Reserve Bank of New York.
Clearings.
Week ending-
Total
clearings.
Total
transfers.
Total
combined
clearings
and
transfers.
Gross
debits.
Gross
credits.
Clearings and transfers combined.
Transfers.
Net
debit.
Net
credit.
Transfers
to other
Federal
Reserve
Banks.
Transfers
from
other
FederalReserve
Banks.
Net
debit.
Net
credit.
Net
debit.
Net
credit.
_
Q
1920.
Jan.
Feb.
Mar.
Apr.
May
8
15
22
29
5
11
19
26
4
11
18
25
1
8
15
22
29
6
13
20
1,859,179
1,602,250
1,735,829
1,610,742
1,546,782
1,156,246
1,766,208
1,418,059
1,895,534
1,586,348
1,837,500
1, 788, 766
1,704,038
1,575,107
1,705,829
1,810,490
1,607,170
1,556,395
1,532,104
1,738,934
175,869
201,746
149,681
86,756
147,774
76,516
128,143
63,791
68,241
* 76,648
79,444
157,916
148,170
70,507
93,081
191,596
127,195
154,428
104,808
136,344
2,035,048
1,803,996
1,885,510
1,697,498
1,694,556
1,232,762
1, 894,351
1,481,850
1,963,775
1,662,996
1,916,944
1,946,682
1,852,208
1,645,614
1,798,910
2,002,086
1,734,365
1,710,823
1,636,912
1,875,278
547,547
454,572
455,579
452,106
406,699
312,505
467,738
394,391
500,354
421,064
491,556
515,473
440,909
447,462
433,962
471,969
416,031
413,324
418,126
428,080
474,000
420,039
469,832
442,118
402,290
313,701
472,113
370,687
497,318
402,686
501,077
461,321
502,670
417,055
491,110
508,401
445,051
406,553
422,279
480,039
73,547
34,533
14,253
4,409
1,196
4,375
23,704
3,036
18,378
5,064
26,938
57,884
25,478
199
3,014
20,779
49,950
110,202
11,003
301
55,000
9,558
50
601
54,152
61,761
30,407
57,148
36,432
29,020
6,771
4,153
51,959
27
9,991
20,700
24,500
53,000
65,500
56,000
24,000
44,000
48,731
46,881
25,177
32,628
35,165
50,392
7,740
20,729
601
8,242
!,242
9,521
28,661
3,600
31,000
42,000
5,296
26,328
22,330
31,649
3,
30,
32,
17,599
40,494
22,143
54,907
57,148
9,760
26,672
43,170
24,351
14,150
31,122
3,492
26,401
14,778
46,357
15,404
24,500
27,492
16,354
23,103
11,278
7,645
25,558
I
I
27
June 3
10
17
24
July 1
8
15
22
29
Aug. 5
12
19
26
Sept. 2
9
16
23
30
Oct. 7
14
21
28
Nov. 4
11
18
24
Dec. 2
9
16
23
30
31 (1 day only)
Total
1,647, 567
1,388,728
1,597,292
1,728,943
1,784,299
1,706,102
1,413,372
1,668,738
1,791,988
1,593,253
1,480,494
1,518,094
1,717,123
1,617,172
1,564,299
1,371,559
1,773,084
1,891, 753
1,692,035
1,712,017
1,574,179
2,076,163
1,798,435
1,503,858
1,503,183
1,743,831
1,408,534
1,662,757
1,468,259
1,514,672
1,578,782
1,284,060
266,085
85,074,220
136,578
137,525
130,382
138,293
136,070
151,148
150,390
84,399
114,827
97,715
130,909
121,447
158,325
139,172
205,861
236,973
130,589
324,163
174,049
178,958
126,683
195,393
191,889
213,869
213,370
156,155
116,705
165,084
178,940
155,273
168,784
133,890
19,123
7,551,585
1, 784,145
1,526,253
1,727,674
1,867,236
1,920,369
1,857,250
1,563,762
1,753,137
1,906,815
1,690,968
1,611,403
1,639,541
1,875,448
1,756,344
1,770,160
1,608,532
1,903,673
2,215,916
1,866,084
1,890,975
1,700,862
2,271,556
1,990,324
1,717,727
1,716,553
1,899,986
1,525,239
1,827,841
1,647,199
1,669,945
1,747,566
1,417,950
235,208
92,625,805
425,347
369,487
430,126
445,449
498,885
455,160
400,475
452,933
477,583,
426,924
390,823
424,438
438,681
431,516
435,916
406,068
496,859
540,739
459,126
503,001
430,248
554,616
489,399
421,597
411,716
464,068
378,933
469,979
416,044
419,379
467,296
364,521
76,053
23,162,832
454, 550
383,004
415,912
489,601
464, 795
481,939
370,738
444,189
499,013
433,789
391, 429
382,451
469,137
412,382
393,773
324,394
439,081
455,767
441,013
428,261
398,576
553,389
476,552
391,468
404,232
479,325
379,449
425,781
364,792
412,123
407,427
347,188
82,427
22,598,293
13,517
14,214
44,152
34,090
26,779
29,737
8,744
21,430
6,865
606
41,987
30,456
19,134
42,143
81,674
57,778
84,972
18,113
74,740
31,672
57, yyi
51,860
28,000
26,500
36,350
7,502
8,300
13,197
36,832
15,735
12,500
13,500
23,046
10,000
5,500
2,203
1,227
12,847
30,129
7,484
15,257
516
44,198
51,252
7,256
59,869
17,333
21,002
3,000
7,000
45,000
15,500
30,290
32,695
17,646
14,898
11,711
1,299
7,574
14,
35,
16,
14,
17,
13,
27,
4,
5,
8,
25,
6,
17,
39,
95,
5,
143,
43, 016
16,612
11,075
11,605
18,999
14, 3U4
3,095
25,289
32,547
53,089
5,972
18,977
13,197
32,832
10,440
3,859
11,802
3,575
3,253
30,185
13,830
16,626
7,470
34,016
95,876
2,898
143,093
14,501
28,
1,
25,
25,
52,
42,
22,
32,751
10,760
21,941
11,402
25,980
5,600
20,000
9,500
21,710
9,305
4,354
14,398
11,711
39,
13,
56,
6,569
38,527
5,725
56,000
2,431
11,664
8,127
14,202
54,880
58,121
32,614
48,760
37,272
21,227
3,347
8,419
1,821
19,611
13,882
55,909
12,725
1,531
3,869
14,902
6,374
6,374
1,029,518
464,979
1,008,316
1,255,627 1 506,495
753,806
790,310
473,082
210
ANNUAL REPORT FEDERAL, RESERVE BOARD.
OPERATIONS THR0U6H
GOLD SETTLEMENT FUND BriVEEKS
DURIN619Z0
u
400
200
2200
2000
1800
1600
1400
1200
1000
800
600
400
200
GROSS DEBITS III SETTLEMENTS
2400
2400
2200
2200
2000
2000
1800
1800
1600
1600
1400
1400
1200
1200
1000
1OOO
800
600
400
200
0
6R0SS DEBITS Iff THE FUND THR0U6H SETTLEMENTSAttDTRANSFERS
JAIi. FEB. MAR.APR. MAY'JUNE JULY'AU6. SEPT. OCT. JiO/. DEC
211
GOLD SETTLEMENT FUND.
OPERATIONS OF THE NEW YORKBANK
THROUGH THE GOLD SETTLEMENT FUND
BYWEEKS DURIN61320
zoo
too
o
A
>
IOO
600
500
400
300
200
100
0
IOO
200
300
400
SOO
600
zoo
A A
•
GROSS DEBITS THROUGH TRANSFERS. '
GROSS CREDITS THROUGH TRANSFERS.
IOO
0
too
D: CROSS DEBITS IN SETTLEMENTS.
C: CROSS CREDITS IN SETTLEMENTS. '
l NET CAIN OR LOSS TMR0U6M SETTLEMENTS.
700
600
SOO
400
300
200
IOO
0
IOO
200
300
400
SOO
600
POO
D: GROSS DEBITS THR0U6H SETTLEMEHTSAND TRANSFERS.
C: GROSS CREDITS THROUGH SETTLEMEHTSAND TRANSFERS.
wmm JfETGAINORLOSS THRO 'SETTLEMENTSAND TRANSFERS.
JAN. EEB, MAR.APR.MAYJUntJULYAMSEP1
(XT. NOV. DEC.
No. 61.—Net
in ownership oj gold through transfers and settlements, by weeks during 1920.
to
to
[In thousands of dollars.]
Boston.
New York.
Cleveland.
Philadelphia.
Atlanta.
Richmond.
Week e n d i n g Decrease.
Jan.
8
15
22
1,607
29
938
27,294
1,900
5
11
19
27
Mar. 4...
11
18
25
Apr. 1
8
15
22
29
May 6
13
20
27
Decrease.
48,731
20 110
40,494
6,310
3,241
1,437
54,907
57,148
9,760
14,150
31,122
7,645
25,558
12 314
3,241
June 3
.
7,831
6,572
14,304
3,095
25,289
13,850
53,089
484
. .
.
2,401
4 354
1,457
3 687
3 066
117
1,030
1,720
7,497
46,357
Decrease.
7,442
'
280
5,021
1,442
2,382
3,508
7,258
513
8,466
5 045
13,442
11,780
8,647
11,806
7,706
11,093
1,843
8,747
6 526
5,114
5,217
1 233
5,765
592
7,676
3 990
3,914
188
4,215
173
3,403
7,596
5 159
2 789
290
502
1,192
2,952
685
732
1 809
114
539
841
724
1,817
o
3,337
7,885
2,843
20,832
845
4,382
3 112
5,823
9,576
3,187
4,475
8,266
6,679
10,256
294
1,774
6,888
9,426
10 418
Increase.
9,426
8,012
1,160
385
383
Decrease.
2,726
7,332
28,542
2 014
6,310
increase.
3,108
1,250
2,095
15,494
4,462
4,570
2,579
32,547
1,913
Increase.
12,267
3,125
22 143
33,634
j
7,266
2,033
16,354
23,103
11,278
14,778
13,886
Decrease.
Increase.
6,286
32,628
35,165
12,515
16,334
7,360
- ..
Decrease.
50,392
7,740
22,978
21,057
10,348
-
Increase.
28,661
12,712
4,094
Feb.
10
17
24
Increase.
2,032
3,578
615
1,045
I
July
l
$
.. . . .
7 759
21 914
10,710
9,042
15
22
29
Aug. 5
12
...
'.
19
6 626
1 373
12,579
Sept. 2 .
9
. . .
8,273
27,228
23
30. . . .
Oct. 7
1 139
478
11,733
14
21
2 239
3 881
675
9,053
26,515
28
Nov. 4
11
18
Dec.
2.
...
9
14 677
8,573
3,699
16
23
30
31 (1 day only)
Total
Net increase for year
Net decrease for year
894
3,695
1,815
54,880
58,121
3 526
2,810
7,580
790,310
317,228
3,803
6,171
1,533
3,974
13,931
3,327
1,220
3,358
86,868
171,643
84 775
1,309
338
2,101
2,443
6,117
1,968
1,410
1,388
1,664
102
244
2,719
158
178
2 869
8 957
21,646
12,068
3,575
670
2,524
7,439
1,484
77,141
83,576
6,642
87,896
10,755
I
d
717
4,761
3,261
301,369
160 683
•6
4,403
2,864
1 465
140,686
2,456
808
3 050
7,925
1,729
5,391
1,119
2,029
832
3,102
555
26
634
874
3,169
7,259
7,684
16,746
928
5,652
5,783
20,391
1,956
15,065
12 336
693
4,282
2,013
1,517
2,970
1,169
3,039
0,507
7,107
29 243
25,308
3 871
473,082
3 781
988
6,432
3,451
3,535
17,008
1,011
6,374
323,805
72 685
362
11 743
9,893
3 537
1,639
13,882
55,909
12 725
1,531
3,869
14,902
861
3,332
5,092
6,752
13,779
827
6,502
32,614
48,760
37,272
21,227
3 347
8,419
1,032
251,120
9,562
7,968
5,039
5,666
922
11,664
8 127
1,821
19,611
31,380
4,255
24
1,236
8 766
896
4 125
14 202
35,343
6 743
16
10 760
21 941
11,402
3 575
3 253
30,185
13,830
12,834
26
6,982
1 419
5 759
32,751
30 318
2,204
67,234
16,342
to
CO
No. 61.—Net changes in ownership of gold through transfers and settlements, by weeks during 1920—Continued.
to
[In thousands of dollars.]
Dallas.
Kansas City.
Minneapolis.
St. Louis.
Chicago.
San Francisco.
Week ending—
Total.
Decrease.
Jan.
8
675
31,601
10 940
15
22
6,972
25
21,998
1
8 665
3,349
15
22
6
13
20
27
...
1,762
15,155
24,335
3,853
24
July
1
8
388
970
49
1,219
600
3,336
693
8,046
3,785
70
2,546
2 509
1,220
1 480
9,437
1,565
2,161
12,791
389
21,186
1,816
719
2,422
1 288
3,064
1,998
7,511
198
11,000
140
3,591
5,342
7,238
902
4 626
2 055
8 113
4,115
340
8,328
4,319
5,637
2,935
2,005
2,536
4,383
27,109
8,791
16 404
423
6,298
5 152
13,426
2,790
806
887
56
1,647
1,825
4,492
2,214
1,182
1 075
3,543
1,626
3,430
1 348
741
18,518
2,775
2,799
407
1 814
5,566 i
1,467
691
3,749
Increase.
6,728
1 973
14,371
2 001
7,664
1,284
Decrease.
6,866
12,399
89
Increase.
1,306
1,456
7,830
4,827
3,031
350
1,154
Decrease.
803
2,072
3,537
Increase.
4,944
11,293
3 052
7,230
4,087
811
1 291
3,207
45
2,282
8,836
33
13,712
10
217
4,822
3,729
289
98
June 3
17
8,928
7,827
1,967
2,736
8,749
4,596
1,057
8 927
29
7,585
2,953
4,071
37
1,271
22,577
Decrease.
2 082
6 453
1,119
11
18
Increase.
3,368
186
4,652
8,311
18,003
10,314
1 513
27
Mar. 4
Decrease.
3,958
1,547
3 334
19
Increase.
4,953
41,058
11
May
Decrease.
6,399
51,063
29
Feb. 5
Apr.
Increase.
1,408
12,043
8,724
12,319
3,117
260
40,176
70,590
47,291
65,702
83,014
22,787
51,451
40,788
32,776
38 975
56,738
54,838
53,854
84 536
60,670
33,962
29,972
37,346
21,134
34,801
21,222
28,009
40,048
44,070
59,601
43,213
25,689
o
w
H
o
15
22
29
oi Aug. 5
8
°
4,534
11,288
84
26
Sept. 2
9
M
16. . . .
01
23..
30
Oct. 7.
. ..
14
21
-28
Nov. 4.
...
11
18
24
Dec. 2
9
16
23
30
31 (1 day
t:>
M
1,320
8,268
2,600
135
710
7,288
1 426
3,399
400
706
1,992
526
5 198
612
2,722
1 225
12,799
1,554
10,166
114
3,925
2,961
2,750
3,560
13,364
7,466
3,026
15
208,961
75,841
1,832
4,324
2,240
1 885
55,921
1 018
1,195
3,538
48,778
568
105,923
5,735
285
1,404
2,084
114,690
66,431
8 767
7,143
21 744
827
18,001
19,743
5 893
37,270
58,399
42,840
33 520
20,802
31 408
40,953
13 241
5,531
19,448
10,307
72
709
2,852
595
6 249
8,751
7,355
50,742
41,749
59,684
7,150
283,853
2,197,970
137,759
471,555
4 766
146,094
37,902
66,891
67 653
29,077
28,516
37,378
30,373
5,452
44,687
18,165
23,711
38,524
31,024
33,899
22,451
6 274
1 525
3,314
1 358
2,703
1,633
82,727
38
3 742
44,596
33,824
8,393
8,437
6,225
9,681
3 491
7,950
24
2,063
5,199
430
4,852*
1 746
10 167
2,147
6,888
98,343
13,002
11,681
3,871
2,153
3,948
751
098
5,773
326
1,477
682
3 954
156
8,820
1,246
838
955
4 250
363
13,396
1,048
2,255
1 407
2 341
1,107
8,712
1,687
39
1,751
42
5 501
£41
2,606
915
5,504
323
5 617
1,814
2,857
2,358
1,366
1,442
1 047
1 577
503
4,198
' 692
5,180
2,960
4,348
1,186
2,129
612
5,260
45,588
307,304
707
170
10,506
1,933
1 639
5 812
2 462
only)
Total .. .
Net increase for
year
Net decrease for
year
1,282
6,176
7,270
5,085
1,414
2,390
4,376
6,428
9,202
12
19
3,973
2,967
16,366
471,555
to
CLEARING OPERATIONS.
to
N o . 62.—Operations of the Federal Reserve clearing system during 1920.
[Numbers in thousands; amounts in thousands of dollars.]
Total items handled (exclusive of
duplications).
Items drawn on banks i n Federal Reserve
Bank.
Federal Reserve
Bank cities.
Federal Reserve
branch city.
Federal ReDistrict outside Fed- Other
serve districts
eral Reserve .Bank
(forwarded
direct
and branch city.
to drawee bank).
Items drawn on
United States
Treasurer.
Number.
Number. Amount. Number. Amount. Number. Amount. Number. Amount. Number. Amount.
Boston
New York
Philadelphia
Cleveland
Richmond
Jrtlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
7,804
11,906
16,593
3,662
1,158
1,165
9,086
2,824
2,902
3,887
1,151
1,461
8,055,207
26,029,644
10,466,187
3,246,092
2,088,418
968,195
9,584,711
3,333,713
1,914, 838
4,334,715
1,161,879
1,311,021
1,845
1,278,262
5,482
2,309
2,152
2,356
2,260
5,822,630
2,189,189
1,761,041
2,218,048
1,675,450
2,184
1,143
3,714
1,974,774
2,599,793
709,634
33,258
49,178
21,679
30,313
25,528
10,633
41,932
23,823
17,240
40,278
23,021
20,278
5,362,447
17,905,065
3,123,073
4,729,053
4,505,282
1,718,197
5,765,273
2,120,383
1,438,117
4,158,600
4,303,030
1,908, 843
71
20,771
3
2,567
2
255
1919
35,573
63,171
29,547
28,008
18,608
11,844
35,427
18,826
10,246
27,251
12,007
14,651
1,456
10,852
1,919
1,476
1,074
880
3,447
1,644
373
1,578
1,145
1,523
345,998
2,465,929
528, 704
226,714
208,088
161,752
471,349
223,604
63,953
148,295
107,661
1,726,996
42,518
73,781
40,191
41,004
30,069
14,830
56,821
30,551
20,515
47,930
26,460
26,978
6,679,043
14,518,471
451,648
Total: 1920...
63,599
72,494,620
23,445
20,228,821
337,161
57,037,363
76
23,593
27,367
1919...
43,206
62,481,093
14,833
13,115,715
214,177
46,340,904
43
37,240
32,900
1920
Amount.
1920
13,763,652
47,678,900
14,117,964
14,045,260
8,990,977
4,609,185
18,039,381
7,353,150
3,416,908
10,618,951
6,282,204
7,546,908
1919
12,128,604
50,530,050
11,960,067
10,812,166
7,239,629
3,932,333
13,491,520
5,862,399
2,363,563
7,911,056
3,999,123
6,262,913
156,463,440
305,159
136,493,423
w
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Total items handled (including duplications).
Items forwarded to
Federal Reserve Bank.
Branches in own
district.
Number.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City....
Dallas
San Francisco..
Total: 1920..
1919..
Head office, by
branches.
Amount.
Number.
Amount.
307
118,323
384
285,579
600
165
937
124
330
244,841
96,611
212,246
80,783
51,786
378
232
374
85
290
116,803
130,863
538,118
36,959
56,917
Other Federal Reserve Banks and
branches.
Number.
Number.
Amount.
1920
1919
963,694
7,646,211
2,737,940
1,110,215
2,287,494
772,111
636,337
182,747
491,950
1,362,017
787,183
573,429
43,821
87,727
49,217
43,213
33,732
17,884
60,520
31,691
21,589
54,756
29,360
30,218
36,234
74,464
37,004
29,789
20,934
14,256
37,592
19,414
10, 748
30,801
14,149
16,209
19,551,328
17,230,824
503,728
1,682
784
1,741
394,060
157,913
443,245
372
285
294,507
80,041
104,988
1,303
13,255
9,026
1,231
3,266
1,743
3,490
520
1,074
4,772
1,831
1,205
6,670
4,844
1,799,808
2,056,827
2,694
1,326
1,644,775
1,119,942
42,716
30,265
Amount.
1920
14,727,346
55,729,013
16,855,904
15,517,119
11,505,945
6,131,660
18,793,460
7,644,600
3,908,858
12,669,535
7,307,341
8,668,570
13,054,799
56,540,748
14,766,937
12,456,799
9,304,180
5,487,105
14,125,543
6,110,660
2,770,009
10,112,923
4,865,992
7,305,321
3
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179,459,351
341,594
156,901,016
to
N o . 63.—Number oj member banks, and oj nonmeniber banks on par list, in each Federal Reserve District as oj the 15th oj each month in 1920.
00
Boston.
Date.
Jan. 15
Feb. 15
Mar. 15
Apr. 15
May 15 .
June 15..
431
431
.
.
July 15
Aug 15
Sept. 15
Oct. 15 .
Nov. 15
Dec. 15
Dec. 31
Philadelphia.
Cleveland.
Atlanta.
Richmond.
Non-
Non-
Non-
Non-
Non-
Non-
par list.
par list.
par list.
par list.
par list.
par list.
Member member Member member Member member Member member Member member Member member
banks. banks on b a n k s . banks on banks. banks on banks. banks on banks. banks on banks. banks on
. . .
.
New York.
.
432
432
432
432
432
432
434
434
434
436
436
758
761
325
326
256
257
257
767
770
772
771
774
775
777
322
320
321
322
324
324
327
258
258
258
255
782
782
780
783
322
681
682
G82
684
687
688
688
691
694
696
323
328
329
700
698
698
247
248
248
253
254
254
415
416
419
419
422
423
843
846
855
856
858
859
1,085
1,084
1,077
1,079
1,078
1,078
427
432
433
434
437
439
439
860
864
866
1,077
1,077
1,076
1,072
1,077
1,080
1,079
867
871
871
871
586
591
594
595
598
601
606
608
610
610
fill
611
610
425
508
568
563
763
766
766
428
431
433
426
435
437
762
764
766
778
1,264
•440
444
445
1,267
460
412
414
1,266
462
408
448
454
470
453
445
444
437
g
433
433
421
416
^
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o
Chicago.
Bate.
Jan. 15..
Feb. 15..
Mar. 15..
Apr. 15..
May 15..
June 15..
July 15..
Aug. 15..
Sept. 15.
Oct. 15..
Nov. 15.
Bee. 15..
Bee. 31...
St. Louis.
Minneapolis.
Kansas City.
Ballas.
San Francisco.
Total.
I
NonNonNonNonNonNonNonMember member Member member Member member Member member Member member Member member Member member
banks
on
banks
on
banks.
banks. banks on banks. banks on banks. banks on banks. banks on banks. banks on banks.
par list.
par list.
par list.
par list.
par list.
par list.
par list.
1,375
1,374
1,381
1,385
1,386
1,391
1,395
1,396
1,401
1,403
1,404
1,417
1,421
3,897
3,899
4,194
4,231
4,235
4,239
4,238
4,241
4,240
4,278
4,278
4,270
4,266
538
543
547
555
559
563
562
567
567
568
569
571
571
2,357
2,540
2,574
2,514
2,513
2,511
2,517
2,512
2,512
2,516
2,526
2,526
2,514
923
926
930
943
954
967
976
992
996
1,000
1,009
2,212
2,361
2,925
2,913
2,913
2,906
2,903
2,901
2,9.13
2,920
2,925
2,895
2,891
1,040
1,050
17O5O
1,055
1,057
1,060
1,065
1,071
1,076
1,083
1,083
1,088
1,087
3,350
3,350
3,363
3,368
3,374
3,390
3,388
3,388
3,395
3,395
3,398
3,402
3,391
759
762
761
773
786
804
822
831
838
842
846
848
850
1,225
1,229
1,243
1,248
1,241
1,250
1,238
1,239
1,254
1,258
1,261
1,265
1,274
727
743
764
772
779
793
801
808
813
819
824
832
831
939
938
927
939
941
1,038
1,042
1,037
1,026
1,028
1,029
1,028
1,027
9,089
9,140
9,196
9,240
9,303
9,366
9,421
9,472
9,506
9,544
9,574
9,612
9,629
16,985
17,429
18,308
18,492
18,502
18,614
18,605
18,605
18,620
18,675
19,188
19,172
19,139
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EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS.
O
No. 64,—Earnings and expenses of each Federal Reserve Bank during 1920.
EARNINGS.
Boston.
New
York.
Philadelphia.
Cleveland.
Richmond.
Atlanta.
Chicago.
St.
Louis.
Minneapolis.
Kansas
City.
Dallas.
San
Francisco.
Total.
$10,031,301 $49,839,183 $10,420,161 $10,570,827 $5,920,893 : $6,688,342 $25,726,750 $6,382,357 $4,734,259 $6,441,476 $4,044,612 $8, 259,664 $149, 059, 825
Discounted bills
477,557
337,991
1,613,012
574,074
3,064,409
8,323,050
273,425
Purchased bills
2,989,035
191,862
211,975 |
73,212 3, 890, 556 22, 020,158
554,172
276,991
320,451
1,975,649
742,235
602,939
391,611
United States securities
995,377
181,990
505,539
270,874
322, 787 i 7,140, 615
99,391
Transfers, net earnings
374,000
77,245
o 1,750
350,969
87, 707 I
987, 562
Deficient reserve penalties (includ102,846
102,804
216,559
41,783
141,664
69,150
174,470
92,744
104,164
ing interest)
238,425
158,569
130,157 S 1, 573, 335
11,270
26,801
42,931
18,249
43,586
29,281
32,985
245,775
28,560
6,286
Sundry profits
14,322
15, 797 |
515, 843
Total earnings.
12,273,253
60,525,321
11,848,551
14,458,619
6,903,270
7,476,431
30,303,218
7,180,117
O
5,307,381 7,409,987 4,904,522 12, 706, 668 j 181, 297, 338
CURRENT EXPENSES.
Expenses of operation:
Assessments, account expenses
of Federal Reserve Board
Federal advisory council (fees
and traveling expenses)
Governors' conferences (including traveling expenses)..
Federal agents' conferences
(including traveling expenses)
SalariesBank officers
Clerical staff
Special officers and watchmen
Allother
Life insurance premiums (employees group insurance)
Directors fees, per diem allowance, and traveling expenses.
Officers and clerks traveling
expenses
Legal fees
$52, 584
$221, 868
$56, 804
$63, 246
$34, 555
$27, 882
$101, 568
$26,618
$22,520
$34,221
$21,695
$45,964
$709,525
408
1,200
378
1,047
546
1,092
1,046
1,200
893
330
400
1,417
9,957
315
270
272
237
401
504
474
277
452
626
651
1,272
5,751
64
100
125
175
559
282
27
121
64
1,683
3,688
116, 600
781, 904
383, 760
3, 479, 270
123, 338
799, 385
143,171
872,339
105, 945
617, 525
156,996
433,196
216, 541
1,672, 550
126, 916
747,312
77,637
363, 724
116, 274
794, 286
117, 768
188,017
649,100 1, 018, 812
1, 872, 963
12, 229, 403
20, 988
7,207
166,449
199,213
70, 921
80,412
35,149
112, 492
15, 066
34, 749
15, 631
24, 502
94, 494
123, 324
22, 984
30, 693
10, 766
23, 686
25, 275
35,694
7,391
6,267
4,008
2, 576 •
7,712
3,661
8,043
6,395
6,702
6,318
17, 427 I
9,591
11, 849
6,705
19, 532
15, 046
2,000
26, 248 I
1, 070 I
15, 495 [
8,068 I
39,667
7,500
25, 525
1,505
15, 227
3,100
28, 085
2,543
400
480
19, 296
9,529
32,175
9,046
3,723
23, 743
9,324
9,885
2,530
20,177
39, 456
33,150
38,691
531,050
750,119
6,530
11,099
144,026
30, 851
2,622
32,193
4,545
271, 011
48, 530
82,602
W
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Rent
Taxes and fire insurance
Telephone
Telegraph
Postage
Expressage
Insurance and premiums on
fidelity bonds
Light, heat and power
Printing and stationery
Repairs and alterations
Currency shipments to and
from member and nonmember banks and between Federal Reserve Banks and their
branches
Currency shipments (other
than Federal Reserve and
Federal Reserve Bank notes)
to and from Washington or
a subtreasury
All other
63, 844
1, ISO
12, 292
10, 314
66. 915
951
301, 797
3,328
32, 934
49, 045
114, 779
3,956
18, 020
20,063
15, 492
10, 565
56,721
437
78, 717
3,183
8,503
27,153
76,212
1,521
10,139
9,699
3,415
27, 604
63, 415
948
19, 433
10, 774
3,589
50, 746
57, 541
1,466
145, 751
4,535
19, 283
63, 875
117, 389
8,381
48, 746
3,220
6,629
44, 800
80, 219
1,319
21, 760
1,186
2,832
13, 780
69,406
11, 938
41, 326
4,217
5,627
37, 310
115, 506
2,144
14, 904
3,476
3,938
56,900
65, 507
36,365
21,163
8,222
10, 415
70, 615
67, 341
7,653
785, 600
73,083
124, 949
462, 707
950, 951
77, 079
23,007
14,443
63,667
26, 283
3,077
270, 383
55,623
37,213
22, 651
113,644
26, 988
31, 710
5,376
120,652
38,149
11, 724
7,460
84, 345
12,395
13, 744
6,095
80, 240
9,340
37, 898
18,199
219, 420
136,292
20,123
7,139
76,743
38,159
18, 592
62, 488
22, 523
21,164
5,720
94, 787
18,147
24,672
6,896
67, 998
13, 797
26, 408
9,246
178, 489
70,296
292, 538
106, 302
1,432, 856
441,997
93,127
111, 522
81, 370
48, 710
28,432
42,609
87,623
27,143
11,392
32, 447
37,921
633,159
26, 898
65,609
87,956
184, 865
20,982
38,072
27, 418
14, 674
23,688
13,478
34, 010
27,144
100, 685
30, 540
32, 390
9,420
25, 288
24, 979
45, 712
12,123
78, 080
17,190
81, 963
312, 802
778,253
Total expenses of operation.
Federal Reserve currency (original
cost including shipping charges)
Miscellaneous charges account
note issues
Taxes on Federal Reserve Bank
note circulation
Furniture and equipment
Bank premises
Total current expenses
Current net earnings
1, 445, 719
5,782,204
1,620,167
799, 003 1, 514,116 1, 311,228
1,993,554
23,130,901
345,151
648, 392
292, 540
334,679
170,101
3,171, 230
1, 792, 991 1,144,494 1, 046,609
3, 261, 501 1, 419, 315
126,009
550, 291
238, 051
62,627
97, 477
86, 514
219, 398
112,162
159,767
77,508
63, 519
45,749
72, 808
102,672
32, 988
15, 959
33, 905
22,825
40,600
780,462
82, 000
24, 585
28,673
207, 401
201, 491
110, 904
75,065
90
93, 322
141, 008
45,166
52,605
103,126
63, 958
76, 057
174, 252
289, 064
75, 460
58,000
176,102
36, 792
100, 817
83, 422
126, 707
2,333
46,397
82, 883
46,283
202, 751
1, 055, 336
1, 599, 656
151, 722
2, 038, 290
6, 999, 255
2,176,274
4, 453, 240 1, 924, 456 1, 015,198 1, 857, 960 1, 549, 847
2, 502, 586
29,889,307
9,072,277 11, 987,934 5, 387,195 6, 090, 990 25, 849,978 5,255,661 4,292,183 5, 552, 027 3,354,675 110,204,082
151,408,031
10,234, 963 53, 526, 066
2, 470, 685 1, 516, 075 1, 385, 441
55
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No. 64.—Earnings and expenses of each Federal Reserve Bank during 1920—Continued.
fcO
PROFIT AND LOSS ACCOUNT.
Boston.
Earnings
$12,273,253
2,038,290
Current expenses
Current net earnings
10,234,963
Additions to current net earnings
on account of:
Amount previously deducted
from current net earnings torAssessment account expenses Federal Reserve
Board
38,666
Special reserve
29,248
All other
Total additions
67,914
Deductions from current net earnings on account of:
Bank premises
Assessment account expenses
Federal Reserve Board
Reserve for depreciation,
United States bonds
Special reserves .. Allother
Total deductions
Net deductions from current
net earnings.«
Net earnings available for dividends, surplus and franchise tax,
Dec. 31,1920
Dividends paid
Transferred to surplus fund
Franchise tax paid United States
Government
1
Net additions.
New
York.
Philadelphia.
Cleveland.
Richmond.
Atlanta.
Chicago.
St. Louis.
Minneapolis.
Kansas
City.
FranDallas. San
cisco.
Total.
$60,525,321 $11,848,551 $14,458,619 $6,903,270 $7,476,431 $30,303,218 $7,180,117 $5,307,381 $7^409,987 $4,904,522 $12,706,668 $181,297,338
2,470,685 1,516,075 1,385,441
2,176,274
4,453,240 1,924,456 1,015,198 1,857,960 1,549,847
6,999,255
2,502,586
29,889,307
5,387,195 6,090,990
53,526,066
9,672,277
11,987,934
168,682
200,000
6,050
41,828
63,246
104,366
522
5,859
17
2, 543
374, 732
146,194
63,768
31,390
20,319
285,677
646,620
129,551
170,000
87,267
25,531
20,302
25,849,978
5,255,661
4,292,183
66,764
19,520
16,607
69,307
19,520
16,607
29,062
365,000
77,737
5,552,027
3,354,675
10,204,082
151,408,031
16,167
45,964
1,040
43
417
523,277
200,000
150,105
1,040
16,210
46,381
873,382
123,570
1,914,484
53,900
28,162
37
2,114
25,299
456,165
5,527
105,396
30,313
772,668
753,355
i 37,601
397,936
607,161
5,865
9,506
9,984
4,214
4,212
4,490
231,671
180,079
100, 985
43, 536
399,615
167,903
148,689
80,666
i 25,771
380,095
48,220
12,658
66,558
11,579
807
130 963
11,691
5,412
278,626
687,165
39,806
177,737
12,386
142,654
141,640
2,986,639
161,130
11,346
126,444
95,259
2,113,257
10,272,564 53,128,130 9,065,116 11,820,031 5,238,506 6,010,324 25,875,749 4,875,566 4,131,0-53 .%540,681 3,228,231 10,108,823
293,052
496,679
447,266 1,477,096
604,194
257,672
225,571
225,424
384,713
792,769
253,711
195,871
7,351,799 212,332,523 8,204, 775 11,215,837 4,740,869 3,648,465 14,688,500 4,621,855 3,410,948 3,042,781 3,002,807 6,654,855
149,294,774
5,654,018
82,916,014
2,473,499 39,318,511
2
1,339
363,662
34,615
100,000
204,585 2,136,2S8 10,391, 480
524,234 2,240,228
3 069,255
Includes $1,000,000 deducted from super-surplus account and credited to general reserve account after closing of books Dec. 31,1920.
60,724,742
2
FISCAL AGENCY DEPARTMENT EXPENSES.
No. 65.—Expenses of fiscal agency department, amounts reimbursed by Treasury Department, and balances reimbursable at end of 1920.
Total expenses during 1920
Amounts reimbursable Jan. 1,1920.
Total
Reimbursements received during
1920
Balance reimbursable Jan. 1,
1921
PhilaBoston. New York. delphia.
Cleveland.
Richmond.
$447, 243 $1, 516,455
977, 835
185, 777
$374,163
117,817
$465,662
330, 386
$345, 541
252, 823
Chicago.
St. Louis.
Minneapolis.
Kansas
City.
Dallas.
San Francisco.
$233,985 $1,005,377
121,787
532,481
$318, 396
106, 457
$251, 719
129, 285
$472, 737
407,176
$239,029
213, 594
$545,049
211, 749
$6,215,356
3, 587,167
Atlanta.
Total.
633,020
2, 494, 290
491,980
796,048
598, 364
355, 772
1,537, 858
424, 853
381, 004
879, 913
452,623
756, 798
9, 802, 523
546,031
2, 269,643
454,125
714,028
574,476
315, 852
1,453,615
354,436
326,697
767, 880
428, 965
657,466
8, 863, 214
86,989
224,647
- 37,855
82,020
23, 888
39,920
84,243
70, 417
54,307
112,033
23,658
99,332
939,309
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CO
RECEIPTS AND DISBURSEMENTS OF THE FEDERAL RESERVE BOARD FOR THE YEAR 1920.
Balance, January 1, 1920:
Available for general expenses of the Board
Available for expenses chargeable to the Federal Reserve Banks
g
$39, 930.02
779.14
Total
$40, 709.16
RECEIPTS.
Available for general expenses of the Board:
Assessments on Federal Reserve Banks for estimated general expenses of the Board
Refunds of expenditures during 1919
Subscriptions to Federal Reserve Bulletin
Refund by Treasury Department of salaries of money counters
Miscellaneous receipts and reimbursements
^
$700, 766. 52
19,413.40
5,461.03
76,117.04
2,716.50
Total receipts available for general expenses of the Board
Available for expenses chargeable to Federal Reserve Banks:
Assessments on Federal Reserve Banks—
For cost of preparing Federal Reserve notes, including cost of additional equipment
2,782,156.54
For expenses of gold shipments between Treasury offices and Federal Reserve Banks under
the provisions of section 16 of the Federal Reserve Act
254,050.00
For expenses of leased wire system
84,939.50
For miscellaneous expenses
9,603.98
Total receipts available for expenses chargeable to Federal Reserve Banks
Total receipts
Total available for disbursements
5
S
F
^
t3
§
804,474.49
^
*4
^
&
j#
£1
w
H
w
#
3,130,750.02
3,935,224.51
W
—
W
3, 975,933. 67
^
DISBURSEMENTS.
For general expenses of the Board:
Expenses for 1919, paid in 1920
Expenses for 1920 (per detailed statement)
Less accounts unpaid December 31, 1920
,.
$712, 043. 63
36,520.44
Salaries of money counters reimbursable by Treasury Deparment
Miscellaneous expenses reimbursable
Total disbursements for general expenses of the Board
For expenses chargeable to Federal Reserve Banks:
Cost of preparing Federal Reserve notes, including cost of additional equipment
Expenses of gold shipments between Treasury offices and Federal Reserve Banks under the
provisions of section 16 of the Federal Reserve Act
Expense of leased wire system
Miscellaneous expenses
$26, 327. 73
675,523.19
84, 574. 46
1, 999. 60
788,424.98
971,155. 56
_
t3
g
|]
192,800.00
84,947.16
10,274.26
p>
Total disbursements for expenses chargeable to Federal Reserve Banks
1, 259,176.98
Total disbursements
2, u^v, oul. 96
.
Balance, December 31, 1920:
Available for accounts unpaid, December 31, 1920
Available for general expenses of the Board
Available for expenses chargeable to Federal Reserve Banks unpaid, December 31, 1920
Total
^
w
™
fej
2
S
36, 520.44
19,459.0£
1,872, 352. IS
w
p
1,928,331.71
§
to
to
Detailed statement of expenses.
January. February.
March.
April.
May.
June.
August.
July.
September.
October.
November.
December.
Total.
PERSONAL SERVICES.
Board members and their staff $7,523.73
Office of secretary
5,091.62
Office of assistant to governor.
Office of general counsel
2,744.98
Office of statistician
1,769.99
Office of fiscal agent
470.00
Division of examination
6,653.32
Division of reports and statistics
4,378.32
Division of chief clerk
Division of gold settlement...
952.48
Division of supply agent
Division of currency
Division of printing
Division of analysis and research
2,574.97
Division of architecture
888.88
Division of issue and redemption..
6,132.50
858.32
Messengers
Charwomen
96.00
$7,280.41 $6,698.78 $6,144.83 $6,207.07 $6,942.18 $7,022.06
5,166.11 5,296.16 5,604.95 5,555.00 5,697.71 5,832.20
Total
Railway loan advisory committee to the Federal Reserve Board
40,135.11
Total personal services.. 40,135.11
2,328.33
1,770. 00
470.00
6,881.66
2,745.02
1,770.01
470.00
6,973.35
2,744.98
1,769.99
470.00
6,973.32
2,745.00
1,770.00
470.00
6,973.33
2,745.02
1,770.01
470.00
6,973.35
2,272.49
1,825. 82
470.00
7,243.30
2,272.50
1,825.84
470.00
7,296. 66
$7,092.98 $6,905.82 $6,905.86 $81,122.07
3,886. 25 1,358.33 1,333.34 56,343.22
1,477.92 1,277.93
3,492.29
736.44
2,272.51 2,452.49 2,680.83 2,680. 85 30,685.00
1,825. 84 1,835. 82 1,900. 84 1,965. 84 21,800.00
478. 33
470.00
5,665.00
478.33
478.34
7,067.12 6,524.55 6,524.58 6,366.29 82,450.83
4,461.67
4,571.69
4,639.14
4,634.67
4,751.69
5,045.78
5,107.50
5,251.22
816.94
1,040.93
1,042.41
1,036.41
1,027.51
1,137.16
1,159.91
1,161.93
2,725.70
888.89
2,790.40
888.89
2,742.88
888.89
2,815.05
888.88
2,841.69
888.90
3,349.15
888.88
3,132.68
888.89
6,132.50
905.01
96.00
5,930.84
941.67
96.00
5,859.16
948.32
96.00
5,819.67
948.34
96.00
5,612.51
903.34
96.00
5,973.89
921.28
96.00
39,923.22
40,213.74
39,924.87 39,959.42
40,719.91
42,078.01
511.67
511.67
40,221.70 40,471.09
41,231.58
296.83
39,923.22
40,213.74
$6,332.06 $6,066.29
5,668.41 5,853.14
5,131.62
1,029.14
1,112.69
212.50
241.45
196.03
5,362.65
1,967.34
1,127.84
425.00
482.92
392.08
5,594. 84
2,006.69
1,216.85
425.00
557.92
392.09
58,930.79
5,003.17
12,833.06
1,062.50
1,282.29
980.20
3,291.69
888.89
3,459.65
888.89
3,496.92
888. 88
3,637.52
888.90
36,858.30
10,666.66
5,931.72
896.96
96.00
6,111.67
993.36
96.00
6,074.79
993.28
96.00
6,060.71
1,000.03
92.80
5,983.06
1,000.03
96.00
71,623.02
11,309.94
1,148.80
41,079.13
41,349.66
42,442.90
42,623.82
42.807.35
493,257.14
668.97
650.00
650.00
650.00
695.56
5,265.92
42,709.23 41,748.10
41,999.66
43,092.90
43,273.82
43,502.91
498,523.06
631.22 .
NONPERSONAL SERVICES.
Transportation and subsistence:
Board members and their
staff
Office of secretary
Office of assistant to governor
Office of general counsel..
Division of examination..
Division of analysis and
research
Division of architecture...
Total all other divisions,
including local car fare..
Communication service:
Telephone
Telegraph
90.03
77.78
248.94
120.38
48.83
68.26
2,542.16
33.06
3,631.32
116.66
2,577.94
2,934.61
5,779.11
4,210.34
3,201.43
77.25
24.71
35.34
22.58
33.54
22.35
138.92
24.22
58.02
48.55
229.20
53.06
43.96
12.50
12.50
137.50
176.56
15.00
240.37
263.12
25.50
3,387.00
30.03
35.20
32.80
126.92
186.80
257.49
574.46
28.00
3,157.63
59.60
35.20
32.80
68.74
189.80
235.16
896.40
223.72
424.99
22.50
3,688.89
33.65
35.20
16.40
236.40
186.80
221.52
429.91
25.00
2,540.86
28.59
35.20
100.65
70.93
121.90
22.40
91.26
57.30
145.07
22.45
204.17
382.22
481.13 i
68.50
246.59
413.69
26.50
5,186.69
24.64
35.20
32.80
48.57
186.80
256.89
474.00
27.00
3,500.92
29.18
35.20
2,471.88
502.03
68.50
149.72
38,130.89
2,725.96
2,668.66
56.17
44.55
177.65
205.03
912.94
710.53
129.01
45.16
37.50
96.86
677.59
313.66
407.09
22.00
3,359.28
10.45
35.20
267.37
453.51
68.00
2,052.71
18.05
35.20
32.80
497.84
231.80
314.04
435.56
310.56
500.50
45.26
4,506.90
9.10
35.20
32.80
37.00
199.80
3,139.10
5,747.61
317.26
46,865.93
471.86
422.40
246.00
1,790.11
2,413.60
692.81
30.65
11,601.10
1,081.28
$696.10
210.02
2,024.36
13,007.26
$6,486.45
1,651.69
12,662.10
75,000.00
25,929.08
213,520.57
69,431.99
712,043. 63
1,433.04
3,495.46
23.03
11.89
293.45
15.00
251.73
474! 38
27.50
6,798.92
94.74
35.20
5,402.51
3,283.62
Printing, binding, etc
74.15
59.68
Repairs
35.20
35.20
Electricity (light and power).,
32.80
32. 80
Steam (heat)
140.65
156.39
134.30
131.38
62.32
149.60
Miscellaneous unclassified
291.80
186.80
186.80
186.80
189.80
189.80
Equipment rental
Supplies:
804.79
611.02
896.13
597.75 1,412.07
626.77
685.66 1,213*12 2,050.49
Stationery and office
, 1,740.83
17.50
63.11
72.71
82.85
85.05
403.18
212.50
5.00
30.05
78.68
Periodicals
Equipment:
$144.76
$520.24 $1,271.04
$525.11
$472.05
$310.25
$558.32 $1,130.86
$207.26
$560.47
Furniture and office
,
94.30
43.95
39.00
16.00
33.29
198.05
106.57
59.00
570.00
19.25
262.26
Books
939.56
807.14
814.56
939.56 1,014.56 1,014.56 1,014.56 1,019.56 1,024.56 1,024.56 1,024.56
Rent
874.70
5,904.07 14,792.00 23,630.80 16,791.17
Vault construction tests
Total
12,239.09 11,277.53 9,710.67 10,436.20 19,309.44 26,495.60 33,742.25 "287274792 10,937.22 10,783.64 14,384.93
Grand total
52,374.20 51,200.75 49,924.41 50,657.90 59,780.53 67,727.18 76,451.4 "70^023702 52,936.88 53,876.54 57,658.75
620.21
228
ANNUAL REPORT FEDERAL RESERVE BOARD.
STATE BANKS AND TRUST COMPANIES ADMITTED,
The following is a list of State banks and trust companies members
of the Federal Reserve System on December 31, 1920, showing the
capital, surplus, and total resources as compiled from the latest
available figures.
One thousand four hundred and eighty-seven State institutions are
now members of the system, having a total capital of $535,177,019
total surplus of $516,522,394, and total resources of $10,338,692,127.'
Capital.1
Surplus.1
Total
resources.1
DISTRICT NO. 1.
CONNECTICUT.
(See also District No. 2.)
New Britain—New Britain Trust Co
New Haven—Union & New Haven Trust Co
South Manchester—Manchester Trust Co
Waterbury—Colonial Trust Co
$400,000
650,000
200,000
400,000
$200,000
650,000
100,000
500,000
$4,543,655
5,503,151
2,102,387
7,603,021
400,000
400,000
100,000
400,000
400,000
25,000
15,433,578
8,598,877
1,196,439
MAINE.
Portland—Fidelity Trust Co
Bangor—Merrill Trust Co
Sanford—Sanford Trust Co
MASSACHUSETTS.
Arlington—Menotomy Trust Co
BostonAmerican Trust Co
Beacon Trust Co
Commonwealth Trust Co
Exchange Trust Co
International Trust Co
Liberty Trust Co
Market Trust Co
Massachusetts 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—The 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
200,000
62,500
2,727,372
1,500,000
600,000
1,500,000
1,000,000
2,000,000
500,000
400,000
1,000,000
500,000
1,000,000
7,000,000
2,000,000
1,000,000
2,000,000
1,400,000
1,000,000
1,000,000
2,000,000
500,000
100,000
500,000
400,000
2,000,000
9,000,000
2,500,000
1,000,000
28,490,445
22,378,733
31,957,972
18,375,927
32,315,018
8,056,568
4,599,290
16,712,551
9,225,364
30,064,314
159,901,831
42,384,814
19,861,065
200,000
200,000
500,000
200,000
200,000
500,000
300,000
200,000
300,000
551,900
200,000
250,000
300,000
100,000
1,500,000
200,000
200,000
400,000
201,400
100,000
250,000
150,000
200,000
400,000
551,900
12,000
150,000
200,000
25,000
1,000,000
4,557,315
5,783,744
5,880,093
4,933,897
3,161,411
5,913, 865
7,798,085
7,670,759
5,565, 835
8,437,853
3,175,263
5,855,346
5,625,483
1,163,452
31,572, 867
3,000,000
3,000,000
1,000,000
4,000,000
4,000,000
500, 000
85,629,756
70,454,573
15,788,646
35,251, 900
38,277,800
751,000,615
RHODE ISLAND.
ProvidenceIndustrial Trust Co
Rhode Island Hospital Trust Co
Union Trust Co
Total
1
Amounts shown represent capital, surplus, and total resources as of Nov. 15, 1920, except in the case
of banks admitted since that date, for which ngnres as of the date of admission were used.
229
STATE BANK MEMBEESHIP.
Surplus.
Total
resources.
DISTRICT NO. 2.
CONNECTICUT.
(See also District No. 1.)
Bridgeport—Bridgeport Trust Co
SI, 000,000
$300,000
$10,573,685
100, 000
200,000
200, 000
50,000
75,000
100, 000
75,000
150,000
100, 000
10, 000
25, 000
20,000
2,938,878
5, 782,160
3, 873, 824
470,167
942, 751
1, 907, 311
150, 000
500,000
250,000
100,000
100,000
500,000
50,000
346, 075
30,000
300,000
100,000
20,000
20, 000
300, 000
10, 000
50,000
2, 304, 226
9, 586, 305
5, 088, 960
719, 033
1,252, 915
7,503, 014
283, 459
5,342, 505
1,000,000
1,000,000
1, 500,000
1, 000,000
37, 718,054
18,133,668
100,000
300,000
600,000
80, 000
100, 000
300,000
4, 997, 854
9, 229, 449
200,000
1,000,000
3, 000, 000
200, 000
100,000
100, 000
100,000
500,000
630, 634
100,000
35,000
25,000
3,183, 342
14, 828, 225
31,818, 766
11,344, 605
1, 670, 064
1,289, 545
400,000
400, 000
500,000
300, 000
100, 000
100,000
150, 000
100,000
200,000
400,000
500,000
400, 000
25, 000
25, 000
40,000
50,000
10,695,132
"7, 542,676
8, 860, 654
9, 528, 231
1, 065, 260
1, 771,190
2, 426, 239
1, 581, 797
100, 000
100,000
1,000,000
80,000
100,000
1,000,000
2, 331,150
2, 813, 321
27,166,466
150,000
100,000
25, 000
200, 000
100,000
50,000
500, 000
30,000
75,000
50,000
50, 000
100, 000
125, 000
50,000
100,000
10,500
1,673,384
867, 359
706, 808
3, 472,127
1,654, 444
555, 302
6,107, 579
173,661
1, 500,000
2, 000, 000
1,600, 000
200, 000
1, 500, 000
2, 741, 478
1, 500,000
800,000
150, 000
1,500,000
49,382, 737
38,462, 839
41, 758, 319
8, 467, 986
40,650, 526
500, 000
1,250, 000
1, 000,000
1, 500, 000
10,000, 000
1,000, 000
50,000
50,000
50,000
200,000
250,000
500, 000
1, 250,000
1, 000, 000
1, 000, 000
7,000, 000
603, 000
26, 000
10, 000
50,000
100,000
125,000
17, 374,017
29,145, 662
20, 994, 990
39, 706, 495
135, 813, 891
19,424, 660
701, 800
326, 718
1, 789, 365
4, 241,171
1,029,043
NEW JERSEY.
(See also District No. 3.)
Asbury Park—Seacoast Trust Co
Bayonne—Bayonne Trust Co
Bloomfield—Bloomfield Trust Co
Bogota—Bank of Bogota
Boonton—Farmers & Merchants Bank
Cranford—Cranford Trust Co
East OrangeEast Orange Bank
Savings Investment <fe Trust Co
Elizabeth— Elizabethport Banking Co
Franklin—Sussex County Trust Co
Glen Ridge—Glen Ridge Trust Co
Hackensack—Peoples Trust & Guaranty Co
Hasbrouck Heights—Bank of Hasbrouck Heights..
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
NewarkCity Trust Co
Federal Trust Co
Fidelity Trust Co
,
Ironbound Trust Co
Nutley—Bank of Nutley
Orange—Trust Co. of Orange
Passaic—
The Passaic Trust & Safe Deposit Co
Peoples Bank & Trust Co
Paterson—The Hamilton Trust Co
Plainfield—The Plainfield Trust Co
Rahway—Rahway Trust Co
Ridgefield Park—Ridgefield Park Trust Co
Ridgewood—Ridgewood Trust Co
Rutherford—Rutherford Trust Co
Westfield—
Peoples Bank & Trust Co
Westfield Trust Co
West Hoboken—Hudson Trust Co
NEW YORK.
Adams—Citizens Trust Co
Albion—The Orleans County Trust Co
Amityville—Bank of Amityville
Amsterdam—Montgomery County Trust C o . . .
Batavia—The Bank of Genesee
Belmont—State Bank of Belmont
Binghamton—Peoples Trust Co
Blasdell—Bank of Blasdell
BrooklynBrooklyn Trust Co
Manufacturers Trust Co
Mechanics Bank
North Side Bank of Brooklyn
Peoples Trust Co
BuffaloBuffalo Trust Co
Citizens Commercial Trust Co
Fidelity Trust Co
Liberty Bank of Buffalo
Marine Trust Co
Peoples Bank of Buffalo
Canisteo—First State Bank
Cape Vincent—Citizens Bank of Cape Vincent.
Chatham—State Bank of Chatham
Coney Island—Bank of Coney Island
Dunkirk—Dunkirk Trust Co
230
ANNUAL REPORT FEDERAL RESERVE BOARD.
Capital.
Surplus.
Total
resources.
DISTRICT NO. 2—Continued.
NEW YORK—continued.
East A u r o r a Bank of East Aurora
Erie County Trust Co...
Elmira—Cherniing Canal Trust Co
Endicott—State Bank of Endicott
Floral Park—Floral Park Bank
Geneva—Geneva Trust Co
Gloversville—Trust Company of Fulton County
Hamburg—The Peoples Bank of Hamburg
Hammondsport—The Bank of Hammondsport
Hicksville—Bank of Hicksville
Ithaca—Ithaca Trust Co
Johnson City—Workers Trust Co
Katonah—Northern Westchester Bank
Kingston—Kingston Trust Co
Lacka wanna—The American Bank of Lacka wanna
Little Falls—Herkimer County Trust Co
Lowville—Lewis County Trust Co
Malone—Peoples Trust Co
Millbrook—Bank of Millbrook
Mineola—Nassau County Trust Co
New Y o r k Bank of America
Bankers Trust Co
Bank of United States
Central Union Trust Co
Columbia Bank
Columbia Trust Co
Commercial Exchange Bank
The Commonwealth Bank of the City of New York.
The Continental Bank
Corn Exchange Bank..
Equitable Trust Co...
Farmers Loan & Trust Co
Fidelity International Trust Co
Fifth Avenue Bank
Fulton Trust Co
Guaranty Trust Co
Industrial Bank of New York
Lincoln Trust Co
Manhattan Co
Mercantile Trust Co
Metropolitan Bank
Metroplitan Trust Co. of the City of New York
Mutual Bank
New Netherland Bank
New York Trust Co
Pacific Bank
United States Mortgage & Trust Co
United States Trust Co
W. R. Grace & Co's. Bank
Yorkville Bank
Niagara Falls—Power City Bank
Nyack—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
Perry—Citizens Bank
Port Chester—Mutual Trust Co. of Westchester County
Rochester—Lincoln-Alliance Bank
Rome—Rome Trust Co
Sehenectady—Schenectady Trust Co
Shortsville—State Bank of Shortsville
Stony Brook—Bank of Suffolk County
Syracuse—
City Bank Trust Co
First Trust and Deposit Co
Syracuse Trust Co.',
Utica—
Citizens Trust Co. of Utica
Oneida County Trust Co
Utica Trust & Deposit Co
Warsaw—Trust Co. of Wyoming County
Watertown—Northern New York Trust Co
Westbury—Bank of Westbury
White Plains—County Trust Co
Total
$100,000
100, 000
600,000
50,000
50,000
250,000
250, 000
30,000
50,000
25,000
200,000
100,000
50,000
250,000
100,000
350,000
100,000
300,000
50,000
100,000
$25,000
37, 500
400, 000
10,000
50, 000
225, 000
150, 000
30,000
50,000
100,000
100,000
50,000
25,000
75,000
25,000
350,000
50,000
100,000
50,000
75,000
5,500,000
20,000,000
1,500,000
12,500,000
2,000,000
5,000,000
200,000
400,000
1,000,000
6,000,000
12,000,000
5,000,000
1,500,000
500,000
500,000
25,000,000
1,000,000
2,000,000
5,000,000
1,000,000
2,000,000
2,000,000
200,000
600,000
3,000,000
1,000,000
2,000,000
2,000,000
500,000
200,000
500,000
100,000
100,000
100,000
200,000
30,000
50,000
300,000
1,000,000
300,000
300,000
30,000
25,000
5,500,000
11,250,000
300,000
15,000,000
1,000,000
6,000,000
700,000
600,000
500,000
7,500,000
14,500,000
10,000,000
1,250,000
2,000,000
250,000
25,000,000
500,000
850,000
12,500,000
500,000
2,000,000
3,000,000
500,000
600,000
10,000,000
1,500,000
4,000,000
12,000,000
800,000
500,000
412,500
25,000
25,000
20,000
120,000
6,000
40,000
75,000
500,000
60,000
62,500
6,000
15,000
105,414,450
388,034,406
35,695,043
256,265,566
32,954,918
110,412,837
10,918,634
11,931,691
18,722,752
215,665,049
271,634,635
157,217,958
25,211,452
27,317,366
11,157,871
667,377,908
7,604,269
35,644,993
253,035,636
20,950,664
57,845,125
38,627,827
14,533,718
10,904,022
98,468,319
34,851,234
84,103,653
64,966,808
6,841,122
17,270,047
10,266,682
2,539,401
1,186,771
1,461,939
3,676,532
669,991
1,263,058
3,277,130
19,871,971
4,045,512
9,619,281
370,594
447,109
1,970,800
2,500,000
1,500,000
973,477
1,000,000
750,000
22,772,531
40,718,916
28,018,008
500,000
250,000
800,000
100,000
400,000
25,000
150,000
500,000
250,000
500,000
20,000
400,000
5,000
50,000
16,399,700
3,457,705
13,648,734
835,528
8,734,864
605,915
4,962,227
173,811,875
$1,805, 528
1, 544, 059
10,193, 608
1,721,428
1,349,161
4,193,808
1, 312, 395
1,655, 245
1,469, 939
1, 706, 776
3,638,156
4,034,017
'520,682
2,016,309
781,079
5,690,389
1,064,607
3,161,067
833,002
2,623,841
186,006,589 4,078,077,234
231
STATE BANK MEMBERSHIP.
Capital.
Surplus.
Total
DISTRICT NO. 3.
DELAWARE.
Milford—Milford Trust Co
WilmingtonEquitable Trust Co
Security Trust & Safe Deposit Co
Wilmington Trust Co
$50,000
$87,500
$1,249,576
500,000
600,000
1,000,000
500,000
700,000
500,000
5,391,279
7,066,302
16,411,167
100,000
200,000
100,000
500,000
100,000
100,000
100,000
100,000
150,000
100,000
800,000
45,000
150,000
100,000
20,000
729,960
3,021,069
1 883,559
12,490,487
1,247,710
2,460,164
1, 855,906
886,201
300,000
250,000
250,000
300,000
100,000
250,000
426,200
300,000
2,613,228
6,300,643
2,961,903
4,541,002
100,000
125,000
200,000
125,000
125,000
50,000
35,000
50,000
600,000
100,000
325,000
17,500
25,000
110,000
15,000
50,000
5,374,604
2,952,191
4,292, 882
806,623
836,033
897,637
453,322
723,475
500,000
2,000,000
200,000
5,200,000
2,500,000
250,000
500,000
2,750,000
100,000
16,000,000
7,500,000
55,000
7,157,600
33,855,910
4,092,513
64,359,615
62,360, 547
2,240,294
2,000,000
200,000
1,000, 000
2,000,000
500,000
500,000
5,000,000
30,000
4,000,000
5,000,000
100,000
500,000
44,760,688
3,874,325
26,318,577
120,419,200
3,355,174
8,296,331
250,000
250,000
125,000
300,000
125,000
125,000
200,000
155,000
25,000
55,000
60,000
125,000
40,000
150,000
5,106,514
867,161
1,474,701
1,608,483
1, 895,306
1,055,342
2,050,907
500,000
400,000
50, 000
250,000
300,000
49,000
4, 823,578
3,213,739
533,212
NEW JERSEY.
(See also District No. 2.)
Atlantic CityBankers Trust Co
Equitable Trust Co.
Burlington—Burlington City Loan & Trust Co
Camden—Camden Sale Deposit & Trust Co
Gloucester—Gloucester City Trust Co
Princeton—Princeton Bank & Trust Co
Riverside—Eiverside Trust Co
Swedesboro—Swedesboro Trust Co
PE NNS YL VANIA.
(See also District No. 4.)
Allentown—Penn Trust Co
Chester—Cambridge Trust Co
Du Bois—The Union Banking & Trust Co
Harris burg—Dauphin Deposit Trust Co
Hazleton—
Markle Banking & Trust Co
Peoples Savings & Trust Co
Honesdale—Wayne County Savings Bank
Huntington—Grange Trust Co
Lewistown—Lewistown Trust Co
Lykens—Miners Deposit Bank
Mill Hall—The Mill Hall State Bank
New Oxford—Farmers' & Merchants' Bank
Philadelphia—
Colonial Trust Co
Commercial Trust Co
Federal Trust Co
Fidelity Trust Co
\
Girard Trust Co
Oxford Bank of Frankford
Pennsylvania Co. for Insurance on Lives and Granting
Annuities
Peoples Bank of Philadelphia
Philadelphia Trust Co
Provident Life & Trust Co. of Philadelphia
Rittenhouse Trust Co
West Philadelphia Title & Trust Co
ReadingBerks County Trust Co
Northeastern Trust Co
Schuylkill Haven—The Schuylkill Haven Trust Co
Scranton—American Bank of Commerce
Shamokin—Dime Trust & Safe Deposit Co
Tamaqua—The Peoples Trust Co
:
Wilkes-Barre—Dime Bank Title & Trust Co
Williamsport—
Northern Central Trust Co
Susquehanna Trust & Safe Deposit Co
Williamstown—Williams Valley Bank
Total.
24,535,000
48,215,200
391,166,640
25,000
105,000
40,000
17,000
70,000
8,000
294,090
1,078,992
611,273
150, 000
500, 000
150, 000
50,000
150,000
50,000
2,092,217
2,270, 524
1,023,113
DISTRICT NO. 4.
KENTUCKY.
(See also District No. 8.)
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
45525 °—21
1
Exclusive of insurance assets of $104,960,131.
-16
232
ANNUAL REPORT FEDERAL RESERVE BOARD.
Surplus.
Total
resources.
DISTRICT NO. 4—Continued.
Adena—The Adena Commercial & Savings B a n k . . .
AkronCentral Savings & Trust Co
Depositors Savings & Trust Co
Firestone Park Trust & Savings Bank
The Peoples Savings & Trust Co
AllianceAlliance Bank Co
City Savings Bank & Trust Co
Antwerp—Antwerp Exchange Bank Co
Apple Creek—Apple Creek Banking Co
Atwater—Atwater Savings Bank Co
Barberton—Peoples Savings & Banking Co
Bellaire—Dollar Savings Bank & Trust Co
Bowling Green—The State Bank of Bowling GreenBridgeport—Bridgeport Bank & Trust Co
Buckeye City—Commercial & Savings Bank C o . . . .
Canton—The Dime Savings Bank Co
Chagrin Falls—Chagrin Falls Banking Co
Cincinnati—
Brighton Bank & Trust Co
Provident Savings Bank & Trust Co
Union Savings Bank & Trust Co
Western Bank & Trust Co
Cleveland—
The Union Trust Co
Cleveland Trust Co
Guardian Savings & Trust Co
Pearl Street Savings <& Trust Co
United Banking & Savings Co
Columbiana—Union Banking Co
Columbus—Citizens Trust & Savings Bank
Conneaut—Conneaut Mutual Loan & Trust Co
Cuyahoga Falls—
Citizens Bank
The Falls Banking & Trust Co
Dayton—Dayton Savings & Trust Co
Delphos—The Peoples Bank of Delphos
Eldorado—Farmers State Bank
Frazeysburg—Peoples Bank Co
Geneva—Geneva Savings Bank Co
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
Middletown—American Trust & Savings Bank
Milan—The Farmers & Citizens Banking Co
Minerva—Minerva Savings & Trust Co
Minster—Minster State Bank
Napoleon—Napoleon State Bank
Newark—The Newark Trust Co
New PhiladelphiaMerchants State Bank
Ohio Savings & Trust Co
Orrville—Orrville Savings Bank
Pandora—Farmers Bank Co
Pemberville— Pemberville Savings Bank Co
Peninsula—Peninsula Banking Co
Portsmouth—Security Bank
Rittman—Rittman Savings Bank
Rossford—Rossford Savings Bank
St. Marys—
The American State Bank
Home Banking Co...
Shadyside—Shadyside Bank.,
Shelby—Citizens Bank
Shiloh—Shiloh Savings Bank Co
Spencer—Spencer State Bank
Steubenville—
The Steubenville Bank & Trust Co
Union Savings Bank & Trust Co
Toledo—
The Commercial Savings Bank & Trust Co..
Commerce Guardian Trust & Savings Bank.
$152,945
$60,000
500,000
300,000
200, 000
200,000
$500,000
300,000
75,000
160,000
14,178,323
8,091,069
3,794,009
7,440,185
150,000
100,000
25,000
25,000
25,000
100,000
125,000
50,000
75,000
25,000
500,000
100,000
150,000
100,000
5,000
15,000
10,000
30,000
50,000
7,000
40,000
5,000
175,000
65,000
3,902,580
3,070,010
393,150
286,304
365,524
2,016,767
1,632,698
557,262
840,906
246,090
5,809,552
1,368,597
215,000
., 400,000
,000,000
L, 000,000
215,000
1,000,000
2,500,000
500,000
9,504,464
18,828,471
24,376,846
15,416,494
$,333,333
1,500,000
L000,000
600,000
L, 000,000
50,000
700,000
100,000
16,666,666
4,625,000
3,000,000
400,000
500,000
35,000
150,000
70,000
284,769,818
116,071,804
82,335,907
15,957,912
20,513,165
823,125
9,038,014
2,153,715
50,000
150,000
600,000
50,000
35,000
25,000
100,000
15,000
70,000
533,540
10,000
5,000
41,000
81,000
1,043,109
2,070,334
17,574,099
551,181
441,254
658,103
1,381,327
50,000
25,000
50,000
50,000
40,000
30,000
200,000
150,000
25, 000
25,000
100,000
25,000
100,000
25,000
50,000
200,000
28,000
12,000
20,000
50,000
60,000
1,800
200,000
50,000
5,800
27,500
20,000
12,500
50,000
25,000
25,000
125,000
900,252
745,217
535,838
1,034,473
886,727
147,662
1,963,999
2,324,295
352,050
526,643
2,603,603
537,891
1,761,216
495,717
928,168
3,294,783
100,000
100,000
50,000
25,000
25,000
25, 000
150,000
60,000
50,000
50,000
50,000
50,000
8,500
10,000
6,000
300,000
15,000
10,000
989,454
2,025,680
987,092
215,794
522,620
274,327
2,735,805
535,437
555,312
50,000
100,000
35,000
100,000
25,000
40,000
11,500
24,000
5,000
50,000
32,000
2,000
564,812
1,085,426
388,508
1,136,901
410,931
299,032
' 546,700
350,000
315,045
350,000
5,177,787
4,357,364
200,000
200,000
150,000
200,000
8,755,293
7,270,275
233
STATE BANK MEMBERSHIP.
Capital.
Surplus.
Total
resources.
DISTRICT NO. 4—Continued.
OHIO—continued.
Upper Sandusky—
Citizens Savings Bank
The Lewis Bank & Trust Co
Vennillion—Erie County Banking Co
Wakeman—Wakeman Bank Co
Warren—Union Savings & Trust Co
Wellington—First Wellington Bank
West Lafayette—West Lafayette Bank Co
West Milton—Citizens State Bank Co
Wooster—Commercial Banking & Trust Co...
Youngstown—
City Trust & Savings Bank
Doilar Savings & Trust Co
$50,000
150,000
50,000
25,000
300,000
85,000
100,000
30,000
150,000
135,000
75,000
11,000
15,000
300,000
95,000
50,000
8,000
35,000
$795,024
922, 480
676,862.
327,124
5,439,075.
1, 454,201
1,209,487
288, 738
1,075,639
300,000
1,500,000
300,000
1,000,000
6, 499,759
21,895,146,
125,000
300,000
200,000
125, 000
500,000
200, 000
188, 600
125,000
300,000
50,000
100,000
40, 000
50,000
600,000
400,000
188, 600
25,000
300,000
2,571,938:
1,650,720
1,579, 459
1,412,088
4,871,101
6,195, 792
2,201,077
1,999,027
4,742,09$
700,000
200,000
2,600,000
1,500,000
200,000
2,000, 000
500, 000
1,500, 000
200,000
125,000
600,000
800,000
2,600,000
1,000, 000
200,000
1,000,000
80,000
35,500,000
300,000
100,000
5,874,175
12,524,284
30,372, 446
13,249,536-'
5,266,556:
21,672,419
5,345,328144,678,271
2,809, 783
2,082,169-
PENNSYLVANIA.
(See also District No. 3.)
Ambridge—Ambridge Savings & Trust Co
Beaver—Beaver Trust Co
Beaver Falls—Federal Title & Trust Co
Bellevue—Bellevue Realty, Savings & Trust Co
Butler—Guaranty Trust Co. of Butler
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
Washington—Real Estate Trust Co
Woodlawn—Woodlawn Trust Co
WEST VIRGINIA.
(See also District No. 5.)
Moundsville—Marshall County Bank
Wheeling—
Security Trust Co
Wheeling Bank & Trust Co
Total
,
150,000
45,000
1,376,096
300,000
300,000
200,000
300,000
3,321,786
5,295,063
49,893,633
81,203,451 1,064,026,453"'
DISTRICT NO. 5.
DISTRICT OF COLUMBIA.
Washington—Continental Trust Co
1,000,000
100,000
5,236, Q9&
750,000
1,000,000
1,000,000
25, 000
30, 000
50, 000
150,000
2,000,000
7,511,949
18,629,053,
9,380, 032
630, 398
659, 807
948, 80S'
MARYLAND.
Baltimore—
Baltimore Commercial Bank
Baltimore Trust Co
Maryland Trust Co
Gwynn Oak Junction—The Liberty Bank of Baltimore County
Hamilton—Hamilton Bank
O verlea—Overlea Bank
7,000
12,500
20,000
NORTH CAROLINA.
Asheville—Battery Park Bank
CharlotteAmerican Trust Co
Independence Trust Co
Forest City—The Farmers Bank & Trust Co
Moorehead City—Bank of Moorehead City
New B e r n New Bern Banking & Trust Co
The Peoples Bank
Tarboro—Farmers Banking & Trust Co
Wilson—Tho Planters Bank
Winston-Salem—Wachovia Bank & Trust Co
100,000
100,000
3,342,129-
1,220,000
1,000,000
100,000
50,000
477,400
500,000
75,000
2,500
13,171, 510
5,388, 315
1,347, 778
449,868.
100,000
100, 000
100, 000
100,000
1,333,100
25,000
50,000
50, 000
25,000
750,000
1,557,611
1,819, 506
1,488,0S5
751,622
29,179,843.
234
*.NNTJAL REPORT FEDERAL RESERVE BOARD.
Capital.
Surplus.
Total
resources.
DISTRICT NO. 5—Continued.
SOUTH CAROLINA.
Charleston—Carolina Savings Bank
Cheraw—
Bank of Cheraw
Merchants & Farmers Bank
Chester—Commercial Bank
Darlington—Bank of Darlington
Florence—Commercial & Savings Bank
GeorgetownBank of Georgetown
Peoples Bank of Georgetown
Hartsville—Bank of Hartsville
Rock Hill—Citizens Bank & Trust Co
St. George—The Farmers Bank
St. Matthews—Tho Home Bank
Sumter—Peoples Bank
Union—Nicholson Bank & Trust Co
Westminster—Westminster Bank
Woodruff—Bank of Woodruff
$200,000
$200,000
S3,484,469
110,000
100,000
100,000
100,000
250,000
50,000
20, 000
90, 000
100,000
80,000
786,01-9
556,103
1,295,977
1,525,117
1,206,988
100,000
100, 000
75, 000
100, 000
25, 000
50, 000
100, 000
75,000
100,000
77,800
100,000
40,000
42, 500
10, 000
9,000
30,000
30, 000
50, 000
25,000
30,050
1,103,936
626,265
1,196,019
954,674
329,958
450,638
650,306
951,679
846,437
561,716
100,000
30,000
100,000
100,000
34,000
60,000
6,000
5,000
15,000
100,000
682,758
272,778
222,156
544,082
1,280,548
100,000
80,000
35,000
25,000
36,900
300,000
135,000
85,000
25,000
18,700
9,225
200,000
1,059,423
732,633
286,703
346,132
213,097
1,680,470
., 000,000
220,000
., 000,000
500,000
110, 000
100,000
8,377,607
2,552,417
4,785,016
500,000
200,000
500,000
35,000
500,000
300,000
750,000
5,201,779
2,550,718
3,971,413
182,425
50,000
400,000
40,000
100,000
50,000
50,000
1,200,000
12,000
50,000
40, 000
1,122,0S9
12,702,505
308,614
1,287, 838
411,1S9
14,756,800
9,521,875
168,803,678
500,000
500,000
60, 000
50,000
50,000
250, 000
50,000
100,000
50,000
250,000
700, 000
1,000
4,000
5,000
5,000
10,867,203
15,554,427
171,544
35,000
100,000
191,112
304,210
658,298
181,009
594,498
534,122
200,000
200,000
100,000
25,000
100,000
50,000
350,000
300,000
25,000
2,500
16,000
10,000
7,392,307
7,787,019
1,403,405
117,160
497,812
294,313
100,000
200,000
100,000
125,000
25,000
1,827,903
1,028,324
352,440
• VIRGINIA.
Blackstone—Citizens Bank & Trust Co
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
Floyd—Peoples Bank of Floyd County
Galax—The Peoples State Bank (Inc.) of Galax.
Kenbridge—Stato Bank of Kenbridge
Lynchburg—United Loan & Trust Co
NorfolkCitizens Bank of Norfolk
Marine Bank of Norfolk
Petersburg—Petersburg Savings & Trust Co
Richmond—
Bank of Commerce & Trusts
Sayings Bank of Richmond
Union Bank of Richmond
Rural Retreat—Peoples Bank of Rural Retreat..
WEST VIRGINIA.
(See also District No. 4.)
Berwind—The Berwind Bank
Charleston—Kanawha Valley Bank
Franklin—Franklin Bank
Grafton—Grafton Banking & Trust Co
Hurricane—Putnam County Bank
Total
DISTRICT NO. 0.
ALABAMA.
Birmingham—
American Trust & Savings Bank
Birmingham Trust; & Savings Bank
Carrollton—Pickens County State Bank
Clayton—Bank of Commerce
Cullman—Alabama Bank & Trust Co
Eufaula—Bank of Eufaula
Hartselle— Farmers & Merchants Bank
Huntsville—Farmers State Bank
Marion—Marion Central Bank
Mobile—
Merchants Bank.
Peoples Bank
Montgomery—Merchants Bank of Montgomery.
Pittsview—Bank of Pittsview
Talladega—Bank & Trust Co
Union Springs—American Bank
FLORIDA.
Deland—Volusia County Bank
Jacksonville—American Trust Co
Lakeland—Central State Bank of Lakeland
235
STATE BANK MEMBERSHIP.
Capital.
Surplus.
Total
resources.
DISTRICT NO. 6—Continued.
FLORIDA—continued.
Leesburg—Leesburg State Bank
Miami—The Southern Bank & Trust Co
Ocoee—Bank of Ocoee
Orlando—Bank of Orange & Trust Co
Tallahassee—The Exchange Bank
Tampa—The Citizens American Bank & Trust Co.
Winter Park—Union State Bank
$30,000
100,000
25, 000/
200, 000
50,000
1,000,000
30,000
$15,000
2,500
50,000
12,500
300,000
4,000
$622.223
1,43< 709
97,521
1,282,309
418.430
9,204,683
3*4,926
100,000
100,000
20,000
20,000
707,661
924,881
1,000,000
1,000,000
500,000
1.000,0n0
25,000
125,000
500,000
150,000
1,500,000
5,000
2,970,197
12,647; 490
2,480,580
4,528,494
124,212
150,000
100,000
55,000
50,000
100,000
20,000
11,000
50,000
1,608,491
914,795
539', 958
467,746
25,000
25 000
60,000
25,000
25,000
12,500
27,000
25,000
15,000
108,986
83,850
513.856
266,829
215,870
100,000
100,000
100,000
25,000
40,000
60,000
50,000
25,000
10,000
> 301,264
739,231
660,571
278,123
145,194
100,000
60,000
100,000
250,000
25,000
25,000
300,000
30,000
50,000
25,000
25,000
12,000
30,000
20,000
650,000
25,000
55,000
75,000
20,000
35,000
6', 000
25,000
494,262
531,754
395,055
3,738,471
337,130
491,323
1,085,669
206,444
562,223
96,816
163,641
200,000
2,000,000
200,000
200,000
300,000
700,000
25 000
100,000
25,000
100,000
12,500
2,500,000
50,000
300,000
35,000
700,000
14 800
10,000
16,500
1,215,518
45,334,640
1,414)194
6,531,119
1,802,608
7,939,943
25,000
316,880
200,791
438,556
50,000
200,000
25,000
8,000
24,000
11,000
387,582
1,050,498
141,582
150.000
50,000
25,000
50,000
5,000
10,000
3,008,081
635,276
328,444
200,000
4,000,000
1,000,000
2,000,000
750,000
500,000
1,500,000
60.000
23,000
2,000,000
250,000
2,500,000
575,000
115,000
800,000
6,600
910,031
60,739,149
8,719,370
55,991,477
13,717,237
2,893,766
19,273,782
373,615
GEORGIA.
AthensAmerican State Bank
Commercial Bank of Athens
Atlanta—
Atlanta Trust Co
Central Bank & Trust Corporation
Georgia Savings Bank & Trust Co
Trust Co. of Georgia
Bowersville—Bank of Bowersville
Brunswick—
Brunswick Bank & Trust Co
Glynn County Bank
Calhoun—Peoples Bank of Calhoun
Camilla—Bank of Camilla
Canon—
The Canon Bank
The Farmers Bank
Carrollton—Peoples Bank
Cave Spring—Bank of Cave Spring
Chipley—Farmers & Merchants Bank
Commerce—
Commerce Bank & Trust Co
Northeastern Banking Co
Donaldsonville—Bank of Donaldsonville
Forsyth—Monroe County Bank
Cravson—Bank of Grayson
Hartwell—
The Farmers & Merchants Bank of Hartwell.
Hartwell Bank
Jackson—Jackson Banking Co
La Grange—The La Grange Banking & Trust Co.
Lexington—Oglethorpe County Bank
Louisville—Bank of Louisville
Monroe—Bank of Monroe
Metter—Citizens Bank
Plains—Plains 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
Swainsboro—The Central Bank
Valdosta—Exchange Bank of Valdosta
Wadley—Bank of Wadley
West Point—Citizens Bank
WinderFarmers Bank..
North Georgia Trust & Banking Co..
Winterville—Pfttard Banking Co
LOUISIANA.
(See also District No. 11.)
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
New Roads—Pointe Coupee Trust & Savings Bank..
236
ANNUAL REPORT FEDERAL RESERVE BOARD.
Capital.
Surplus.
Total
resources.
DISTRICT NO. 6—Continued.
TENNESSEE.
(See also District No. 8.)
Chattanooga—Chattanooga Savings Bank
Nashville—Bank of Tennessee
Wartrace—Wartrace Bank & Trust Co
Total
DISTRICT NO. 7.
(See also District No. 8.)
Auburn—Auburn State Bank
Barringtqn—First State Bank
Blandisville—Huston Banking Co
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 Bros. Banking Co
Great Lakes Trust Co
Harris Trust & Savings Bank
Home Bank & Trust Co
Hyde Park State Bank
Illinois Trust & Savings Bank
Independence State Bank
Kaspar State Bank
Madison & Kedzie State Bank
Mechanics & Traders State Bank
Mercantile Trust & Savings Bank
Merchants Loan & Trust Co
Noel State Bank.
Northern Trust Co
Northwestern Trust & Savings Bank
Second Security Bank
Security Bank of Chicago
Standard Trust & Savings Bank
State Bank of Chicago
Union Trust Co
United States Bank of Chicago
Woodlawn Trust & Savings Bank
Cicero—
Morton Park State Bank
Western State Bank
Cowden—State Bank of Cowden
Des Plaines—Des Platnes State Bank
Divernon—First 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
Xewanee—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 of Mattesqn
Mattoon—Central Illinois Trust & Savings Bank...
Moline—
Moline Trust & Savings Bank
Peoples Savings Bank & Trust Co
State Savings Bank & Trust Co
Mount CarrollCarroll County State Bank
First State Savings Bank
Oak ParkOak Park Trust & Savings Bank
Suburban Trust & Savings Bank
$750. 000
200,000
25,000
$250,000
50,000
$6,821,697
3,232,776
106,257
25,050,000
16,332,400
346,052,743
25,000
50,000
60,000
100,000
25,000
15,000
40,000
150,000
544,319
458,901
1,382,267
2,276,677
65,000
30,000
1,000,000
400,000
150,000
5,500,000
1,500,000
600,000
3,000',000
200,000
100,000
10,000,000
27,000
300,000
150,000
50,000
112,5C0
9,000,000
100,000
3,000,000
150,000
100,000
250,000
500,000
3,500,000
2,700,000
40,000
100,000
5,127,520
2,517,957
73,576,618
13;772,449
6,213,627
101,147,473
36,672,141
11,737,372
41,747,258
6,603,402
3,716,205
142,251,228
3,430,585
13,501,064
4,704,080
2,784,919
6,134,748
126,112,318
6,330,039
48,821,820
20,981,826
4,649,946
7,644,109
11,366,416
48,836,679
52', 759,927
1,668,701
5,831,567
100,000
200,000
25,000
50,000
50,000
100,000
20,000
25,000
10,000
35,000
2,500
10,000
1,382,936
2,290,359
257,227
1,078,490
624,461
676,748
100,000
300,000
50,000
50,000
50,000
12,000
300,000
6,000
10,000
25,000
1,448,319
6,632,787
578,255
758,536
753,981
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
6,000
6,000
20,000
10,000
75,000
1,291,355
1,108,840
1,533,600
1,592,291
291,196
335,939
484,303
176,642
1,130,815
300,000
250,000
300,000
150,000
250,000
165,000
4,403,501
6,283,101
5,108,000
50,000
50,000
50,000
50,000
1,221,968
1,017,128
200,000
100,000
50,000
10,000
3,155,180
1,059,436
200,000
200,000
000,000
000,000
300,000
250,000
500,000
000,000
000,000
300,000
200,000
000,000
200,000
500,000
500,000
200,000
400,000
000,000
500,000
2, 000,000
750,000
200,000
400,000
000,000
:', 500,000
1,000,000
200,000
250,000
237
STATE BANK MEMBERSHIP.
Capital.
Surplus.
Total
resources.
DISTRICT NO. 7—Continued.
ILLINOIS—continued.
Oswego—Oswego State Bank
Rock Island—First Trust & Savings Bank
St. Charles—Stewart State Bank
Shannon—State Bank of Shannon
Springfield—Ridgeley Farmers State Bank
Wenona—First State Bank of Wenona
(See also District No. 8.)
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
Lafqntaine—Farmers State Bank
Marion—Grant Trust & Savings Bank
North Liberty—North Liberty State Bank
Richmond—Dickinson Trust Co
Rochester—United States Bank & Trust Co
South BendAmerican Trust Co
St. Joseph Loan & Trust Co
South Whitley—Gandy State Bank
Terre Haute—The Terre Haute Trust Co
Tipton—Farmers Loan & Trust Co
,
,
$50,000
100,000
100,000
50,000
600,000
50,000
$396,755
616,386
1,290,242
315,555
7,109,615
671,633
40,000
25,000
25,000
400,000
27,500
250,000
25,000
30,000
267,706
327,557
209,419
3,007,239
211,893
4,751,945
274,121
439,239
70,000
50,000
35,000
100, COO
50,000
200,000
75,000
50,000
40,500
1,000
160,000
11,000
125,000
25,000
688,941
424,261
167,722
2,182,268
419,362
3,318,192
887,061
200,000
800,000
25,000
500,000
50,000
128,000
150,000
15,500
500,000
50,000
4,427,544
4,475,597
317,950
8,112,766
737,868
100,000
30,000
50,000
50,000
50,000
50,000
100,000
30,000
50,000
25,000
50,000
60,000
50,000
200,000
50,000
40,000
75,000
25,000
300,000
40,000
700,000
60,000
13,000
14,000
1,000
20,000
15,000
30,000
10,000
10,000
25,000
70,000
10,000
65,000
50,000
8,000
75,000
5,000
300,000
10,000
700,000
2,301,656
611,660
847,328
324,127
848,750
630,880
893, 651
1,282,446
483, 888
292,549
558,611
1,242,519
440,063
2,865.659
950,747
424,022
1,303,381
155.320
5,697,330
182,428
17, 887,832
50,000
150,000
50,000
75,000
765,019
2,474,325
L 000,000
250,000
200, 000
500,000
25,000
200,000
250,000
7,500
250, 000
15,000
4,163,018
6, 704,018
1,449, 414
9,309, 328
242,491
30,000
40, 000
40,000
50,000
50,000
33,000
20,000
20,000
15,000
25,000
421,149
388,288
673, 016
250,120
1, 062, 330
25,000
35,000
26,000
200,000
40,000
5,000
15, 000
24, 000
75, 000
10,000
192,029
348,222
596, 518
2,041, 378
247,393
100,000
100, 000
10,000
50,000
1,324,765
1, 913, 592
IOWA.
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
Bennett—Bennett Savings 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
Clearfield—Taylor County State Bank
Clinton—Peoples Trust & Savings Bank
Corwith—Peoples State Bank
Davenport—American Commercial & Savings Bank
Decorah—
Citizens Savings Bank
Winneshiek County State Bank
Des Moines—
Bankers Trust Co
Central State Bank
First Trust & Savings Bank
Iowa Loan & Trust Co
Dexter—Iowa State Bank
EarlyCitizens State Bank
State Bank of Early
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
Farragut—Commercial Savings Bank
Fort MadisonAmerican State Bank
Fort Madison Savings Bank
238
ANNUAL REPORT FEDERAL RESERVE BOARD.
Total
resources.
DISTRICT NO. 7—Continued.
10 WA—continued.
Fostoria—Citizens Savings Bank
Garwin—Garwin State Bank
Gilbert—Gilbert Savings Bank
Gilman—Citizen Savings Bank
Grand River State Bank
Grant—Farmers Savings Bank
Greenfield—Greenfield Savings Bank
Hudson—Hudson Savings Bank
Humboldt—Peoples State Bank
Jefferson—Jefferson Savings Bank
ICnoxville—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
Lyttori—Farmers Savings Bank
Magnolia—Magnolia Savings Bank
Malcom—Malcom Savings Bank
Mapleton—Mapleton Trust & Savings Bank
Marshalltown—Marshalltown State Bank
Mason City—Commercial Savings Bank
Mechanicsville—Mechanicsville Trust & 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 of New Hampton
Newton—
Citizens State Bank
Jasper County Savings Bank
Ogden—City State Bank
Osage—Home Trust & Savings Bank
Osceola—Iowa State 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
Schaller—Schaller Savings Bank
Shenandoah—Security Trust & Savings Bank
Sibley—Sibley State Bank
Sioux Center—Sioux Center State Bank
Sioux City—Union Trust & Savings Bank
Storm Lake—Security Trust & Savings Bank
Sutherland—First Savings Bank
Terril—Terril Savings Bank
Thompson—State Bank of Thompson
Tipton—Farmers & Merchants Savings Bank
Ute—
Farmers Savings Bank
State Savings Bank
Vail—Farmers State Bank
Van Wert—Van Wert State Bank
Wapello—Wapello State Savings Bank
Waterloo—Waterloo Bank & Trust Co
Winterset—Madison County State Bank
Webster City—The Hamilton County State Bank
(See also District No. 9.)
Adrian—
Adrian State Sayings Bank
Commercial Savings Bank
Lena wee County Savings Bank
Albion—
Albion State Bank
Commercial & Savings Bank
Alpena—Alpena County Savings Bank
Ann ArborFarmers & Mechanics Bank
State Savings Bank
$25,000
50,000
50, 000
50, 000
25, 000
25,000
30,000
50, 000
100, 000
50, 000
50, 000
30, 000
100, 000
25, 000
50, 000
25,000
30, 000
25, 000
50, 009
75, 000
100, 000
200, 000
50, 000
100, 000
50, 000
35, 000
$5,000
25, 000
5,000
6,000
15,000
16,000
5,000
20, 000
35, 000
9,000
15, 000
10,000
10,000
17, 500
11,000
16, 000
17, 500
10, 000
30, 000
11, 000
50,000
30, 000
50,000
40, 000
10, 000
15,000
$158, 960
548,050
340, 049
519,073
364, 848
285, 991
322,881
648, 994
880,208
567, 817
555,999
276, 435
981, 874
433, 701
461, 299
385, 99a
498, 90S
228,701
484.678
718, 740
2, G91,426
1, 864,106
694, 268
581, 478
599, 315
374, 818
200, 000
200,000
35,000
50,000
100,000
200. 000
23'000
45,000
1,198,110
2, 436,160
405. 835
903,698.
60, 000
100, 000
50,000
50,000
50,000
100,000
50,000
50,000
25,000
35,000
25,000
15,000
50, 000
20,000
25,000
7,000
30,000
2,300
22,000
15,000
25,000
3,500
604,634
1,367, 376
659,174
668,796
405,035
1,535,981
544,348
511,981
' 252,224
504,108.
225,034
100,000
75,000
25,000
60,000
50,000
25,000
100,000
75,000
50,000
25,000
30,000
50,000
30,000
100,000
25,000
6,000
15,000
35,000
10,000
3,453
10,000
2,000
8,000
20,000
778,640
1,251,137
390,188
395,254
613,110
337,590
1,081,237
419,072
403,937
209,264
277,011
495,059
25,000
50,000
50,000
25,000
30,000
200,000
125,000
100,000
15,000
12,500
25,000
10,0C0
50,000
125,000
30,000
139,255
342,657
377,034
341,992
544,821
1,666,13a
1,336,618
1,663,582
120,000
110,000
150,000
120,000
30,000
50,000
2,288,978
1,741,391
2,298,796
50,000
75,000
100,000
40,000
40,000
200,000
1,184,222
1,191,171
3,910,334
200,000
300,000
75,000
250,000
2,712,362
4,035,210
239
STATE BANK MEMBERSHIP.
Surplus.
Total
resources.
DISTRICT NO. 7—Continued.
MICHIGAN—continued.
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 Rapids—
Big Rapids Savings Bank
Citizens State Bank
Birmingham—First State Savings Bank
Britton—Peoples State Savings Bank
Caledonia—State Bank of Caledonia
Caro—State Savings Bank
Carson City—Farmers & Merchants State BankCarsonville—The First State Bank
Cassopolis—Cass County State Bank
Charlotte—Eaton County Savings Bank
Chelsea—
Kempf Commercial & Savings Bank
Farmers & Merchants Bank
Coloma—State Bank of Coloma
Constantine—Commercial State Bank
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
Dime Savings Bank
First State Bank
Peninsular State Bank
Peoples State Bank
United Savings Bank
Wayne County & 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
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
Fremont—
Fremont State Bank
Old State Bank
Grand HavenGrand Haven State Bank
Peoples Savings Bank
Grand Rapids—
City 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—Hopkins State Savings Bank
Howell—First State & Savings Bank
Hudson—Thompson Savings Bank
Imlay City—
Lapeer County Bank
Peoples State Bank
Ionia—State Savings Bank
$25,000
25,000
$20,000
10,000
$506,081
363,455
250,000
100,000
400,000
25,000
100,000
250,000
25,000
500,000
5,000
40,000
5,413,024
1,898,101
11,057,967
195,588
2,113,459
50,000
50,000
100,000
25,000
50,000
112,500
25,000
25,000
40,000
100,000
12,500
25,000
20,000
5,000
10,000
87,500
5,000
5,000
3,800
20,000
912,012,
1,535,491
1,482,411
371,241
525,835
1,733,065
314,925
548,198
463,680
1,359,996
40,000
25,000
25,000
25,000
25,000
3J, 000
59,000
100,000
40,000
25,000
15,000
5,000
3,000
6,000
8,000
165,000
853,986
772,970
881,017
348,061
458,661
662,725
568,765
2,313,864-
1,000,000
1,000,000
1,000,000
1,500,000
1,500,000
1,000,000
2,500,000
5,000,000
500,000
4,000,000
30,000
35,000
50,000
40,000
400,000
350,000
200,000
1,500,000
2,100,000
400,000
1,250,000
7,500,000
225, 000
5,000, 000
9,000
15,000
10,000
20,000
19,189,629
21,368,444
19,898,034
29,788,030
41,006,723
15,264,277
40, 899,293
129,533,847
7,729,715
91,949,520
517,256
387,239
803,333
735,455
50,000
25,000
30,000
17,500
685,977
834,739'
443,000
500,000
500,000
400,000
25;000
25,000
50,000
250,000
500,000
300,000
200,000
15,000
5,000
30,000
5,418,361
8,801,978
10,515,738
6,180,815
347,709224,471
997,476
25,000
50,000
25,000
25,000
734,012
1,178,784
100,000
50,000
75,000
25,000
2,300, 111
1,078,302
200,000
300,000
400,000
500,000
200,000
50,000
40,000
1,000,000
100,000
40,000
60,000
250,000
500,000
100,000
30,000
13,000
800,000
25,000
3,171,008
3,6(7,916
12,222,657
13,118,132
2,468,028
1,114,222
689,964
18,001,094
1,157, Oil
100,000
100,000
100,000
25,000
75,000
100,000
25,000
50,000
50,000
5,000
17,000
50,000
2,715,153
2,036,793
1,633,531
524, 891
618,761
1,580,309
50,000
50,000
100, 000
10,000
10,000
100, 000
1,174,234
938,042
1,668,622
240
ANNUAL REPORT FEDERAL RESERVE BOARD.
Total
resources.
DISTRICT NO. 7—Continued.
M ICHI G AN—continued.
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
Manistee—Manistee County Savings Bank
Marcellus—G. W. Jones Exchange Bank
Marshall—Commercial Savings Bank
Marysville—Marysville Savings Bank
MasonFarmers 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
Montague—Farmers State Bank
Morenci—Wakefield State Bank
Mount Clemens—Ullrich Savings Bank
Mount PleasantExchange Savings Bank
Isabella County State Bank
NashvilleFarmers & Merchants Bank
State Savings Bank.
New Haven—New Haven Savings Bank
Niles City—Niles City Bank
Northville—Lapham State Savings Bank
Onsted—Onsted State Bank
Paw Paw—Paw Paw Savings Bank
Petersburg—H. C. McLachlin & Co. State Bank
Petoskey— First State Bank
Pinconning—The Pinconning State Bank
Pontiac—
American Savings Bank
Oakland County Savings Bank
Pontiac Commercial & Savings Bank
Port Huron—Federal Commercial & Savings Bank
Bedford— Redford State Savings Bank
Rochester—Rochester Savings Bank
Rogers City—Presque Isle County Savings Bank
Romeo—Romeo Savings Bank
Royal O a k First State Bank of Royal Oak
Royal Oak Savings Bank
Saginaw—
American State Bank
Bank of Saginaw
Sparta—Sparta State Bank
St. Charles—St. Charles State Bank
St. Clair—Commercial & Savings Bank
Saline—Saline Savings Bank
Saugatuck—Fruit Growers State Bank
South Haven—Citizens State Bank
Spring Lake—Spring Lake 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
$100,000
300,000
50,000
25,000
$26,000
125, 000
25,000
12,500
$2,099,072
2,756,264
615,112
524, 997
25,000
25,000
150,000
75,000
50,000
25,000
100,000
4,500
10,000
100, 000
15,000
10,000
10,000
25,000
300,137
315,000
4,536,464
903, 766
1,112, 457
642.142
1, 915,994
25,000
25,000
100,000
40,000
100, 000
100,000
15,000
50,000
100,000
25,000
20,000
50,000
561, 703
830, 359
2, 814, 938
567,281
1,301, 501
473, 933
50,000
25,000
50,000
25,000
25,000
200, 000
25, 000
50,000
100,000
10,000
15,000
15,000
10,000
12,500
30, 000
5,000
30,000
100,000
652,098
722,841
917,827
387, 580
698, 52
3,318,979
427,479
1, 028,805
1,973, 015
50,000
60,000
30,000
15,000
1, 532, 569
1, 533, 853
35,000
25,000
25,000
100,000
50,000
25,000
40,000
25, 000
60, 000
30,000
35,000
6,000
25,000
25,000
15,000
10,000
10,000
5,000
15,000
6,000
920,365
461,823
670, 877
1,033,567
905,689
335, 421
707, 084
532, 749
1, 080,967
703.143
400,000
250, 000
750,000
300, 000
100, 000
50, 000
35, 000
100,000
53,000
75,000
150, 000
125,000
41,250
10,000
15,000
25,000
2, 480,446
3, 927, 571
10,632, 955
5, 857, 519
893,373
808, 793
962, 204
1, 494, 964
50, 000
74,300
20,000
64,300
1, 384, 549
1,337, 490
200, 000
1,000, 000
30,000
25,000
50,000
25,000
100,000
100,000
25,000
25,000
100,000
250,000
8,000
6,000
10,000
25,000
15,000
50,000
7,000
10,000
4,'241, 819
19, 771, 535
525,284
625,920
1,247,641
554,155
951,701
1,350,575
409,645
444,981
40,000
26,000
200,000
20,000
26,000
100,000
872,994
909,349
3,417,032
25,000
30,000
25,000
25,000
50,000
5,000
7,000
25,000
12,500
50,000
554,002
506,459
790,444
354,228
1,307,547
40,000
50,000
14,000
10,000
496,699
563,946
241
STATE BANK MEMBERSHIP.
Capital.
Surplus.
DISTRICT NO. 7—Continued.
WISCONSIN.
(See also District No. 9.)
Baraboo—Bank of Baraboo
Burlington—Bank of Burlington
Clinton—Citizens Bank of Clinton
Delavan—Citizens Bank of Delavan
Green Lake—Green Lake State Bank
Janesville—Bank of Southern Wisconsin
Kenosha—Merchants & Savings Bank
ICewaunee—State Bank of Kewaunee
Madison—Bank of Wisconsin
Milwaukee—
American 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
PlatteviUe—State Bank of Platteville
Plymouth—
Plymouth Exchange Bank
State Bank of Plymouth
Seneca—Farmers & Merchants State Bank
Sheboygan—Citizens State Bank
Stratford—Stratford State Bank
Sturgeon Bay—Bank of Sturgeon Bay
Waupun—State Bank of Waupun
Wausau—Marathon County Bank
Winneconne—Union Bank of Winneconne
Total
DISTRICT NO. 8.
$100,000
125,000
50,000
50,000
39,600
100,000
100,000
60,000
300,000
$50,000
25,000
10,000
25,000
20,000
10,000
17,000
15,000
60,000
$2,212,658
1,838,888
587,596
984,342
475,488
398,574
2,284,479
1,041,919
3,416,473
1,000,000
200,000
1,000,000
1,000,000
100, 000
45,000
50,000
50,000
200,000
25,000
1,000,000
1,000,000
50,000
25, 000
10,000
10,000
10,395,098
3,831,428
25,988,282
37,089,491
1,512, 857
765, 588
322, 075
1,222,430
100,000
125,000
25,000
200,000
50,000
100,000
50,000
100,000
25,000
50,000
32,500
15,000
125,000
10,000
20,000
8,000
40,000
10,500
1,087,387
1,387,539
523, 858
3,184, 501
459,396
2,161,846
801,368
1,694,860
492,246
98,083,900
0,300,103 1,827,068,885
ARKANSAS.
Arkansas City—Desha Bank & Trust Co
Batesville—
Citizens Bank & Trust Co
Union Bank & Trust Co
Blytheville— Farmers Bank & Trust Co
Brinkley—Monroe County Bank
Cabot—Peoples State Bank
Dardanelle—Dardanelle Bank & Trust Co
Dumas—Merchants & Farmers Bank
El Dorado—Bank of Commerce
England—Citizens Bank & Trust Co
Fort Smith—Arkansas Valley Bank
Helena—Security Bank & Trust Co
Jonesboro—
Bank of Jonesboro
Jonesboro Trust Co
Lake Village—Chicot Bank & Trust Co
Little RockAmerican Bank of Commerce & Trust Co...
Bankers Trust Co
Southern Trust Co
Union & Mercantile Trust Co
W. B. Worthen Co., Bankers
Magnolia—
Columbia County Bank
Farmers Bank <k Trust Co
Marion—Crittenden County Bank & Trust Co..
Paris—American Bank & Trust Co
Pine Bluff—Cotton Belt Savings & Trust Co....
Prescott—First State Bank
Bussellville—Bank of Russellville
Texarkana—Merchants & Planters Bank
Warren—Warren Bank
100,000
150,000
1,473,212
50,000
100,000
50,000
50,000
25,000
50,000
50, 000
50,000
100, 000
100,000
250,000
20,000
15,000
50,000
5,000
2,500
10,000
17,000
5,000
15,000
20,000
50,000
590,837
1,051, 526
1,065, 496
311,079
104,652
448, 994
497,258
233, 880
625, 032
1,255,132
2,180,636
200,000
100,000
150,000
250,000
50,000
37,500
2,988,520
1,497,404
1,034,877
750,000
300,000
500, 000
400,000
200,000
150,000
60,000
100,000
200,000
275,000
11,335,896
4, 535,950
5,374,152
6,777, 871
2,663,122
50,000
50,000
275, 000
50,000
100,000
50, 000
75,000
200,000
75,000
16, 500
38,000
75,000
8,000
60,000
2,500
37,750
20,000
22,000
643,446
878, 508
2,439,438
423, 722
1,470, 932
365, 834
536,136
1,172,016
580,761
150,000200,000
60,000
110,000
400,000
100,000
40,000
25,000
4,577,673
3,563,166
991,441
900,870
ILLINOIS.
(See also District No. 7.)
Belleville—Belleville Savings Bank
East St. Louis—Union Trust & Savings Bank...
Edwardsville—Citizens State & Trust Bank
Effingham—Effingham State Bank
242
ANNUAL REPORT FEDERAL RESERVE BOARD.
Capital.
Surplus.
Total
resources.
DISTRICT NO. 8—Continued.
ILLINOIS—continued.
Gillespie—Gillespie Trust & Savings Bank..
Greenville—State Bank of Hoiles & Sons...
Harrisburg—Saline Trust & Savings Bank..
Lebanon—State Bank of Lebanon
Litchfield—Litchfield Bank & Trust Co
Louisville—Clay County State Bank
Madison—Union Trust Co
Mount Carmel—First State Bank
Mount Olive—Mount Olive State Bank
Quincy—State Savings Loan & Trust Co...
$50,000
120,000
100, 000
50, 000
100, 000
25, 000
50, 000
100, 000
50,000
, 000, 000
$15,000
40,000
50,000
5,000
10,000
7,500
5,000
17, 500
5,000
200,000
$689,109
1,280,980
867,840
497,505
831,670
200, 913
297,586
525, 580
369,089
8, 745,132,
200,000
40, 000
100,000
10,000
3,293,138
398,053
INDIANA.
(See also District No. 7.)
Evansville—Mercantile Commercial Bank.
Paoli—Paoli State Bank
KENTUCKY.
(See also District No. 4.)
Harrodsburg—State Bank & Trust Co
Louisville—
Kentucky Title Savings Bank & Trust Co,
Liberty Insurance Bank
Lincoln Savings Bank & Trust Co
Ownesboro—Central Trust Co
100,000
21,000
350,000
500, 000
500,000
200,000
100,000
750,000
100, 000
50,000
655,966
9,089,605
17,435,003
3,613,377
1, 582,482:
MISSISSIPPI.
Rosedale—Bolivar County Bank
(See also District No. 10.)
Bertrand—Commercial Bank of Bertrand
Bowling Green—Pike County Bank
Clayton—Farmers & Commercial Savings Bank
Iberia—Farmers & Traders Bank of Iberia
Jefferson City—Exchange Bank of Jefferson City
Lexington—Lafayette County Trust Co
Linn Creek—Camden County Bank
Macon—State Exchange Bank of Macon
Maplewood—Bank of Maplewood
Marshall—Wood & Huston Bank
St. LouisAmerican Trust Co
Cass Avenue Bank
Farmers & Merchants Trust Co
Franklin Bank
Grand Avenue Bank
Gravois Bank of St. Louis County
International Bank
"
Jefferson-Gravois Bank
Lafayette South Side Bank
Liberty Central Trust Co
Manchester Bank of St. Louis
Mercantile Trust Co
Mississippi Valley Trust Co
Mound City Trust Co
South Side Trust Co
Tower Grove Bank
United States Bank
West St. Louis Trust Co
Versailles—Bank of Versailles
Waynesville—Bank of Waynesville
547, 273.
150,000
30,000
25,000
75,000
25, 000
100, 0C0
75, 000
25, 000
100, 000
50, 000
100,000
2,000
8,750
7,500
10, 000
25,000
15,000
35,000
20, 000
10,000
200, 000
96,086
357, 262
298, 907
251,136
1,397, 572
379, 676
293, 290
1,016, 546
828, 359
1, 806,464
1,000,000
200, 000
200, 000
600, 000
200,000
25,000
500, 000
200,000
1,000, 000
3,000,000
250, 000
3,000,000
3,000,000
200, 000
200,000
200, 000
1,000,000
200, 000
75, 000
50,000
200, 000
50,000
50, 000
900,000
50, 000
5,000
500,000
70, 000
800,000
1,000, 000
100,000
7,000, 000
3, 500, 000
25,000
50, 000
50,000
700, 000
25,000
9,000
6,000
10, 505,118
3,666, 957
4, 261, 512
11, 292, 557
2, 959, 665
611, 378
8, 916, 821
2, 301, 913
19,488,120
51,733,861
4,345, 811
63,155, 075
36,774, 740
940, 553
2,680, 872
4, 396, 884
10, 518, 526
2,112, 332
535, 989
655,404
TENNESSEE.
(See also District No. 6.)
Alamo—Bank of Alamo
Bells—Bank of Crockett
Brownsville—First State Bank
Dyer—Farmers & Merchants Bank of Dyer
Dyersburg—Citizens Bank
Halls—Peoples Savings Bank & Trust Co
25,000
25,000
200,000
40,000
50,000
25,000
2,500
1,250
25,000
21,441
50,000
10,000
397,803
329, 561
1,307,493
354, 782
1,147,661
229,883
243
STATE BANK MEMBEESHIP.
Total
resources.
Capital.
Surplus.
$1,500,000
600, 000
500,000
1, 800, 000
$1, 500,000
100,000
50,000
500, 000
$22, 228,389
7, 344, 227
5, 475,680
26, 554, 813
29,175,000
21,496,191
429,489,428
50,000
25,000
100,000
100,000
100,000
50,000
100,000
15,000
20,000
50,000
12,500
125,000
35,000
20,000
1,455,219
432,268
2,006,471
743,798
1,260,256
995,101
980,507
100,000
100,000
30,000
20,000
35,000
30,000
1,209,896
1,743,667
692,120
50,000
50,000
25,000
25,000
25,000
50,000
75,000
50,000
50,000
50,000
10,000
6,000
14,000
20,000
50,000
30,000
15,000
10,000
1,501,810
905,426
299, 883
638,418
366,021
952,209
917,603
685,507
773,267
200,000
300,000
500,000
50,000
125,000
30,000
200,000
100,000
70,000
15,000
65,000
30,000
6,665,702
6,463,757
3,232,512
696,416
1,479, 013
197,603
200,000
500,000
40,000
100,000
2,298,963
2,850,769
100,000
125,000
50,000
50,000
25,000
20,000
2,096,631
520,231
705,949
25,000
30,000
25,000
50,000
25,000
100,000
6,000
30,000
.10,000
2,500
10,000
25,000
304,881
727,777
407,900
356,332
301,163
1,893,377
300,000
200,000
200,000
50,000
4,061,873
3,763,277
50,000
50,000
568,402
50,000
50,000
100,000
50,000
11,000
381,929
412,484
991,999
649,005
DISTRICT NO. 8—Continued.
TENNESSEE—continued.
MemphisBank of Commerce & Trust Co
Commercial Trust & Savings Bank
Guaranty Bank & Trust Co
Union & Planters Bank & Trust Co
Total
DISTRICT NO. 9.
(See also District No. 7.)
Gladstone—-Gladstone State Savings Bank
Gwinn— Gwinn State Savings Bank
Iron Mountain—Commercial Bank
Ironwood—Merchants & Miners State Bank
Laurium—State Savings Bank
Manistique—The Manistique Bank
Menomiiiee—The Commercial B#nk
Sault Ste. MarieCentral Savings Bank
Sanlt Savings Bank
South Range—South Range State Bank
MINNESOTA.
Benson—Swift County Bank
Clarkfield—Clarkfield State Bank
Clinton—Clinton State Bank
Hayfield—Farmers State Bank of Hayfield
Jeflers—State Bank of J effers
Lake City—Lake City Bank of Minnesota
Lewiston—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 State Bank
Revere—State Bank of Revere
St. PaulCentral Bank
Peoples Bank
South St. PaulDrovers State Bank of South St. Paul
Exchange State Bank
St. Peter—The Citizens State Bank of St. Peter
Spring ValleyFarmers State Bank
First State Bank
Waconia— Farmers State Bank of Waconia
Walnut Grove—First State Bank
Westbrook—Citizens State Bank
Willmar—Kandiyohi County Bank
Winona—
Deposit Bank.
Merchants Bank
MONTANA.
Belgrade—Belgrade State Bank
BeltFarmers & Miners State Bank
State Bank of Belt
Billings—Security Trust & Savings Bank
Boulder—Bank of Boulder
Bozeman—
Gallatin Trust & Savings Bank
Security Bank & Trust Co
Broadus—Powder River County Bank
Browning—Stockmens State Bank
Butte—
Miners Savings Bank & Trust Co
Metals Bank & Trust Co
Culbertson—The Citizens' State Bank
Denton—Denton State Bank
5,000
25,000
100,000
100,000
•25,000
35,000
25,000
15,000
899,492
355,574
158,089
164,689
200,000
300,000
25,000
25,000
50,000
200,000
10,000
5,000
1,654,339
6,566,581
352,029
250,413
244
ANNUAL REPORT FEDERAL RESERVE BOARD.
Capital.
Surplus.
Total
resources.
DISTRICT NO. 9—Continued.
M ONTAN A—c on tinued.
Dillon—
Beaverhead State Bank
Security State Bank
East Helena—East Helena State Bank
Edgar—Edgar State Bank
Ennis—Southern Montana Bank
Eureka—Farmers & Merchants State Bank
Forsyth—Bank of Commerce
Fromberg—Clarks Fork Valley Bank
Hamilton—Rayalli County Bank
Hardin—Hardin State Bank
HelenaBanking Corporation of Montana
Conrad Trust & Savings Bank
Montana Trust & Savings Bank
Union Bank & Trust Co
Hingham—Hingham State Bank
Hinsdale—Valley County Bank
Huntley—Huntley State Bank
Inverness—Inverness State Bank
Joliet—Joliet State Bank
Kalispell—Bank of Commerce of Kalispell
Laurel—American Bank of Laurel
Le wist own—
Bank of Fergus County
Empire Bank & Trust Co
Lewistown State Bank
Missoula—American Bank & Trust Co
Nashua—State Bank of Nashua
Opheim—First State Bank
Park City—Park City State Bank
Philipsburg—Philipsburg State Bank
Plentywood—State Bank of Plentywood
Reed Point—The Reed Point State Bank
Richey—First State Bank of Richey
Roundup—Citizens State Bank
Saco—Farmers & Merchants State Bank
Sidney—Yellowstone Valley Bank & Trust Co
Stevensville—First State Bank of Stevensville
White Sulphur Springs—The Central State Bank.,
Willow Creek—Willow Creek State Bank
Wolfe Point—First State Bank
Worden—The Farmers State Bank
Wyola—Little Horn State Bank
$50,000
50,000
50,000
30,000
25,000
25,000
75,000
25,000
50,000
50,000
$1,500
5,000
11,300
1,500
25,000
14,000
37,500
1,000
12,500
35,000
$198,927
201,256
205,021
154,631
405,880
493,077
944,324
220,098
575,579
372,269
500,000
200,000
150,000
250,000
35,000
25,000
25,000
25,000
25,000
100,000
25,000
17,500
100,000
75,000
150,000
7,000
8,000
10,000
3,000
10,000
18,000
2,500
2,471,885
2,313,658
1,969,591
4,432,063
312,411
210,077
209,875
171,007
338,814
738,467
220,434
250,000
100,000
100,000
100,000
25,000
25,000
40,000
40,000
25,000
25,000
25,000
50,000
25,000
100,000
40,000
GO, 000
25,000
30,000
25,000
25,000
250,000
35,000
25,000
14,000
3,500
5,000
2,000
15,000
10,000
6,500
5,000
35,000
1,000
12,500
10,000
15,000
15,000
12,000
5,000
6,750
3,227,896
926,983
516,394
1,866,088
277,107
205,100
412,516
491,471
366,741
133,977
138,827
907,604
237,247
569,170
386,048
309,141
323,626
506,000
248,080
117,364
50,000
25,000
50,000
25,000
10,000
2,500
10,000
5,000
559,329
204,064
157,615
453,118
75,000
150,000
25,000
50,000
25,000
25,000
100,000
25,000
50,000
25,000
40,000
10,000
10,000
10,000
10,000
15,000
5,000
10,000
1,124,468
2,534,765
393,787
846,990
687,171
353,858
1,143,458
235,970
632,638
500,000
300,000
25,000
30,000
25,000
60,000
50,000
5,000
2,000
5,000
30,000
1,833,607
5,794,227
287,753
393,169
298,514
1,590,912
50,000
25,000
30,000
50,000
42,000
50,000
10,000
5,000
5,600
25,000
1,000
4,500
296,449
549,600
1,315,927
419,927
789,862
NORTH DAKOTA.
Enderlin—Enderlin State Bank
Golden Valley—First State Bank....
Jamestown—Security Savings Bank.
Noonan—Security State Bank
SOUTH DAKOTA.
Bellefourche—Butte County Bank
Brookings—Bank of Brookings
Camp Crook—Little Missouri Bank
Chamberlain—Brule State Bank
Groton—Brown County Banking Co
Hecla—Farmers & Merchants State Bank
Mitchell—Commercial Trust & Savings Bank.
Newell—Reclamation State Bank
Rapid City—Citizens' Bank & Trust Co
Sioux F a l l s Commercial & Savings Bank
Sioux Falls Savings Bank
South Shore—South Shore Bank
Stratford—First State Bank
Timber Lake—Stock Growers State Bank
Webster—Security Bank & Trust Co
WISCONSIN.
(See also District No. 7.)
Arcadia—Bank of Arcadia
Balsam Lake—Polk County Bank
Boyceville—Bank of Boyceville
Ellsworth—Bank of Ellsworth
Glenwood City—First State Bank
Grantsburg—First Bank of Grantsburg
245
STATE BANK MEMBERSHIP.
Capital.
Surplus.
Total
DISTRICT NO. 9—Continued.
WISCONSIN—continued.
Hurley—Iron Exchange Bank
New Richmond—Bank of New Richmond
West Salem—La Crosse County Bank
Whitehall—Peoples State Bank
Total
$50,000
75,000
50,000
30,000
$30,000
37,500
27,500
6,000
$980,2081
1,558,285
621,114
579,379
10,192,000
3,447,150
127,651,479
500,000
500,000
25,000
225,000
500,000
15,000
9,030,526;
12,981,659
547,461
25,000
30,000
100,000
100,000
50,000
200,000
2,500
17,000
40,000
50,000
20,000
59,000
260,409
266,079
1,410,374
1,046,357
548,809
1,941,314
200,000
200,000
100,000
60,000
35,000
50,000
1,612,508
2,170,504
1,623,087
DISTRICT NO. 10.
COLOBADO.
DenverAmerican Bank & Trust Co
International Trust Co
Fort Lupton—Fort Lupton State Bank
KANSAS.
Anthony—Home State Bank
Fairview—Fairview State Bank
Fort Scott—Fort Scott State Bank
Hiawatha—The Morrill & Janes Bank
Liberal—Citizens State Bank
Topeka—Kansas Reserve State Bank
WichitaSouthwest State Bank
The State Savings & Mercantile Bank
Winfield—State Bank
MISSOURI.
(See also District No. 8.)
Joplin—Conqueror Trust Co
Kansas CityCommerce Trust Co
Live Stock State Bank
Midwest Reserve Trust Co
Savannah—The Wells-Hine Trust Co
South St. Joseph—St. Joseph Stock Yards Bank.
200,000
125,000
3,041,204
1,000,000
200,000
2,000,000
100,000
350,000
1,000,000
37,500
200,000
4,800
150,000
44,240,472
1,758,716
18,310,019
796,568
4,157,679
30,000
50,000
35,000
50,000
50,000
50,000
100,000
25,000
25,000
50,000
100,000
7,000
15,000
15,000
25,000
10,000
15,000
20,000
1,250
11,000
2,722
10,000
304,561
907,888.
346,446
645, 084
583, 553
384,139
863, 598
206,416
209,168
331,649
945,345
25,000
25,000
30,000
25,000
25,000
35,000
85,000
25,000
100,000
50,000
30,000
5,000
2,500
8,000
17,500
10,000
12,000
19,000
2,000
25,000
15,000
30,000
311,644
291,750
306,266
579,025
319,664
479,278
585,478
257, 741
1,133,638
983,610
263,853
40,000
50,000
10,000
10,000
272,323
542,92$
200,000
40,000
25,000
67,500
200
6,100
3,634,840
410,794
299,893
NEBRASKA.
Allen—Farmers State Bank
Aurora—The Fidelity State Bank
Broken Bow—Custer State Bank
Chappell—Chappell State Bank
Cozad—Farmers State Bank
David City—Butler County State Bank
Elgin—Elgin State Bank
Genoa—Farmers State Bank
Kilgore—Kilgore State Bank
Lewellen—Bank of Lewellen
Lincoln—American State Bank
Meadow Grove—
Meadow Grove State Bank
Security Bank
Neligh—Security State Bank
North Bend—First State Bank
Oakland—The Oakland State Bank
Ord—Nebraska State Bank
Pender—Pender State Bank
St. Edward—Farmers State Bank
Sidney—American Bank
Wayne—State Bank of Wayne
Western—Saline County Bank
NEW MEXICO.
(See also District No. 11.)
Aztec—The Citizens Bank
Santa Fe—Capital City Bank
OKLAHOMA.
(See also District No. 11.)
Ardmore— Guaranty State Bank
Billings—Citizens Bank of Billings
Bixby—The Bixby State Bank
246
ANNUAL REPORT FEDERAL RESERVE BOARD.
Capital.
Surplus.
Total
resources.
DISTRICT NO. 10—Continued.
OKLAHOMA—continued.
Chelsea—Bank of Chelsea
ClintonClinton State Bank
The First State Bank
Cordell—
Cordell State Bank
Oklahoma State Bank
Ooltry—Bank of Goltry
Kingfisher—Citizens State Bank
Locust Grove—First State Bank
Okarche—First Bank of Okarche
Oklahoma City—First State Bank
Okmulgee—
American State Bank
Guaranty State Bank
Pawhuska—Stockgrowers State Bank
Ponca City—Security State Bank
Stigler—First State Bank of Stigler
$50,000
$8,500
$804,875
50,000
50,000
5,250
6,500
220,193
721,508
30,000
30,000
25,000
50,000
25,000
50,000
200,000
4,100
3,000
5,000
2,800
10,000
15,000
30,000
409,696
427,866
222,634
710,643
261,185
494,635
3,428,723
200,000
300,000
60,000
300,000
30,000
20,000
100,000
6,000
50,000
7,500
100,000
50,000
40,000
20,000
35,000
4,000
765,427
651,011
111,043
8,895,000
3,295,222
138,835,805
33,000
30,000
42,000
10,000
672, 841
398,916
375,000
300,000
125,000
100,000
2,195,222
4, 715,214
100,000
25,000
30,000
60, 000
25, 000
25,000
65,000
3,000
5,700
25,000
10,000
5,000
1,053, 745
104,115
150,908
234, 026
247, 865
347, 594
40,000
25, 000
50,000
50, 000
10,000
1,250
20,000
22, 500
249, 445
159,640
344, 912
482, 544
60,000
30,000
25,000
50, 000
25,000
60,000
20,000
35, 000
12,000
55,000
10, 000
12,000
571, 946
384, 806
236,415
635, 941
131,470
414,393
65,000
100,000
20,000
10,000
679,483
415, 967
100,000
250, 000
50,000
25,000
25,000
20,000
130,000
30,000
10,000
4,000
2,177, 422
3,117,170
543, 321
391, 820
338, 540
1,318,605
2,877,490
560,345
2,244,186
461,422
4
WYOMING.
Cheyenne—Cheyenne State Bank
Evanstqn—Stockgrowers Bank
Mountain View—Uinta County State Bank
Total
DISTRICT NO. 11.
(See also District No. 12.)
Safford—Bank of Safford
Tombstone—Cochise County State Bank.
LOUISIANA.
(See also District No. 6.)
Monroe—Central Savings Bank & Trust Co
Shreveport—Continental Bank & Trust Co
NEW MEXICO.
(See also District No. 10.)
Albuquerque—The State Trust & Savings Bank
Cloudcroft—First State Bank
Corona—Stockmen's State Bank
Lovington—The First Territorial Bank
Mountainair—Mountainair State Bank
Portales—Security State Bank
OKLAHOMA.
(See also District No. 10.)
Broken Bow—The McCurtin County Bank
Coleman—The Coleman State Bank
Fort Towson— First State Bank
Valliant—Farmers State Guaranty Bank
TEXAS.
Alice—Citizens State Bank
Alpine—Alpine State Bank
Alto—Alto State Bank
,
Anson—Anson State Bank
Avery—Avery State Bank
Ballinger—Ballinger State Bank & Trust Co
Bay CityBay City Bank & Trust Co
First State Bank
BeaumontGuaranty Bank & Trust Co
Texas Bank & Trust Co
Beeville—Beeville Bank & Trust Co
Bishop—First State Bank of Bishop
Bomarton—First State Bank
247
STATE BANK MEMBERSHIP.
Capital.
Surplus.
Total
resources.
DISTRICT NO. 11—Continued.
TEXAS—continued.
Bonham—
Fannin County Bank
First State Bank
Bremorid—First State Bank
Bridgeport—Bridgeport State Bank
Brownfield—Brownfield State Bank
Bryan—First State Bank & Trust Co. of Bryan..
Canton—Texas State Bank
Canyon—First State Bank
Celina—
The Celina State Bank
First State Bank
Childress—Farmers & Mechanics State Bank
Clarendon—Farmers State Bank
CliftonFarmers Guaranty State Bank
First Guaranty State Bank
Collinsville—First Guaranty State Bank
Colorado—First State Bank
Commerce—Citizens State Bank
Copperas Cove—First State Bank
Corsicana—First State Bank
Cross Plains—First Guaranty State Bank
Crowell—First State Bank
Cuero—First State Bank & Trust Co
DallasCentral State Bank of Dallas
Dallas County State Bank
Guaranty Bank & Trust Co
DeKalb—First State Bank
Del Rio—Del Rio Bank & Trust Co
Denison—Denison Bank & Trust Co
Denton—First Guaranty State Bank
East Bernard—Union State Bank
Edgewood—Farmers & Merchants State Bank...
El Paso—
American Trust & Savings Bank
El Paso Bank & Trust Co
Security Bank & Trust Co
JTalfurrias—Falfurriis State Bank
Ferris—Farmers & Merchants State Bank
.Flatonia—Flatonia State Bank
Floydada—First State Bank of Floydada
Forney—Forney State Bank
Franklin—First State Bank
Frost—The Citizens State Bank
Galveston—
South Texas State Bank
Texas Bank & Trust Co
Ganado—The Farmers State Bank
Gatesville— Guaranty State Bank & Trust Co...
Georgetown—Farmers State Bank
George West—First State Bank
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
Hallsville—Farmers State Bank of Hallsville
Hamlin—First State Bank
Hedley—Guaranty State Bank
Henderson—First State Bank of Henderson
Hereford—First State Bank & Trust Co
Hillsboro—First State Bank
Houston—State Bank <k Trust Co
Italy—Farmers State Bank
Jacksonville—
Farmers Guaranty State Bank
First Guaranty State Bank
Junction—Junction State Bank
Kaufman—First State Bank
Kenedy—
Farmers &. Merchants State Bank
First State Bank & Trust Co
Kerens—First State Bank
Kilgore—Kilgore State Bank
Killeen—First State Bank
Kirkland—First State Bank
45525°—21- -17
$100,000
200,000
50,000
25,000
25, 000
100,000
50,000
40,000
$50,000
100,000
12,000
2,000
25,000
50,000
25,000
1,500
SI, 336,133
1,439, 723
498, 203
139, 819
392, 831
830, 791
264, 426
326, 333
35,000
50,000
50,000
50,000
7,500
40,000
50,000
3,030
268, 712
472, 602
911, 473
335,026
30,000
40,000
25, 000
30,000
25, 000
25, 000
200, 000
30, 000
30, 000
100,000
20,000
20,000
8,000
3,000
7,500
12, 500
40,000
26, 500
46,000
393, 865
323, 497
269, 509
316, 307
210, 085
339,652
1,318, 429
256,165
440,085
748,355
1,000,000
250,000
1,000,000
50,000
100, 000
160,000
50,000
50,000
35,000
500,000
110,000
100,000
50,000
80,000
57,500
6,000
10,000
10,000
7,843,803
1,970,460
5,864,413
400,244
770,621
3,188,164
460,004
239,991
211,736
350,000
200,000
200,000
75,000
50,000
50,000
50,000
25,000
30,000
25,000
50,000
20,000
20,000
13,000
2,500
5,000
15, 000
15, 000
50,000
2, 857,145
2,851,286
2,293,340
414,327
268,227
639,458
778,928
244, 594
352, 292
330,590
200,000
400,000
35,000
50,000
50,000
50,000
50,000
50,000
75,000
50,000
100,000
600,000
5,000
10,000
50,000
16, 500
15,000
25,000
25,000
20,000
4,144,918
7,812,791
124, 570
543, 363
858,836
345,398
239,681
853,952
639, 073
266,993
40,000
25,000
25,000
40,000
25,000
25,000
50,000
150', 000
200,000
50,000
20,200
20,000
12, 500
25,000
50,000
15,000
10,000
20,000
318,442
127,323
129,730
429,430
137,272
146,281
675,729
992,189
2,905,961
398,910
50,000
62, 500
100,000
100,000
14,000
22,875
110,000
80,000
333,296
586,466
688,002
667,887
60,000
80,000
40,000
12,500
13,000
449,856
710, 829
352, 591
191,748
589,491
321,493
50,000
60,000 /
50,000 i
25,000 '
25,000
50,000
248
ANNUAL REPORT FEDERAL RESERVE BOARD.
Capital.
Surplus.
Total
resources.
DISTRICT NO. 11—Continued.
TEXAS—continued.
Ladonia—First State Bank:
La Feria—Cameron County Bank of La Feria
Lamesa—First State Bank
Leakey—First State Bank
Leonard—First State Bank
Liberty—Liberty State Bank of Liberty
Lockney—Lockney State Bank
Longview—Commercial Guaranty State Bank of Longview.
Loraine—The First State Bank
Lorenzo—First State Bank
Lubbock—
Lubbock State Bank
Security State Bank & Trust Co
Lufkin—Citizens Guaranty State Bank
Luling—
Citizens State Bank
Liseomb Bank & Trust Co
McAllen—First State Bank & Trust Co
McGregor—First State Bank
McKinney—Central State Bank
Madisonville—Farmers State Bank of Madisonville
Malone—First State Bank ol Malone
Matador—First State Bank
Mathis—First State Bank
Maypearl—
Citizens State Bank
Farmers & Merchants State Bank of Maypearl
Memphis—Citizens State Bank
Mercedes—Bank of Commerce & Trust Co
Mertens—First Guaranty State Bank
Moran—Moran State Bank
Mount Calm—First State Bank
Mount Pleasant—Guaranty State Bank
Munday—The First State Bank
Nacogdoches—Commercial Guaranty State Bank
Normangee—First State Bank
North Zulch—Farmers Guaranty State Bank
Orange—The Guaranty Bank & Trust Co
Paducah—First State Bank
Palmer—First Guaranty State Bank
Pampa—Gray County State Bank
ParisFirst State Bank
Laniar State Bank & Trust Co
Pecos—Pecos Valley State Bank
Port Arthur—Merchants State Bank
Post City—First State Bank
Quanah—First Guaranty State Bank
RailsFirst State Bank
Guaranty State Bank & Trust Co
Reagan—First State Bank
Rice—First State Bank of Rice
Richardson—Citizens State Bank
Roaring Springs—First State Bank
Robstown—First State Bank of Robstown
Rockwall—Guaranty State Bank
Royse—First State Bank
Rusk—Farmers & Merchants State Bank & Trust Co
Sabinal—First State Bank
San Antonio—Central Trust Co
San Augustine—Commercial Guaranty State Bank
Santa Anna—First State Bank
Savoy—First State Bank
Semihole—The First State Bank of Seminole
Seymour—First Guaranty State Bank
Shamrock—Farmers & Merchants State Bank
Shiro—Farmers State Bank of Shiro
Silverton—Briscoe County State Bank
Sinton—Bank of Commerce
Slaton—The First State Bank
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
$35,000
25,000
30,000
25,000
50,000
35,000
50,000
50,000
30,000
25,000
$15,000
3,000
40,000
500
10,000
3,500
2,500
30,000
25,000
$474,352
161,827
560,872
63,494
397,974
352,988
402,457
269,896
443,223
314,170
100,000
100,000
75,000
50,000
6,000
5,000
1,075,554
653.948
509,344.
25,000
75,000
100,000
50,000
75,000
25,000
25,000
25,000
30,000
6,000
55,000
15,000
5,000
7,000
25,000
8,000
12,500
16,000
235,232
413,820
951,147
429,202
692,138
430,004
165,911
392,717
199,517
25,000
25,000
75,000
50,000
25,000
30,000
40,000
60,000
35,000
100,000
25,000
25,000
100.000
50^000
25,000
25,000
25,000
25,000
50,000
5,000
5,000
6,000
8,000
30,000
5,000
50,000
25,000
10,000
50,000
17,500
10,000
231,528
2i7,542
636,647
230,318
144,688
306,493
211,397
639,436
330,801
1,997,780
240,803
184,327
367,637
462,855
210,928
252,915
150,000
150,000
110,000
100,000
25,000
100,000
100,000
50,000
37,000
42,000
1,875
50,000
1,969,042
1,937,634
648,377
1,855,257
156,975
1,180,193
25,000
60,000
25,000
50,000
35,000
25,000
25,000
45, 000
50, 000
100, 000
80,000
1,000, 000
50,000
35, 000
25,000
40,000
35, 000
50, 000
25,000
25,000
25, 000
40,000
50,000
25,000
55, 000
100,000
200,000
30, 000
25, 000
25,000
15,000
4,000
15,000
10,000
3,500
15,000
8,000
7,700
25,000
1,000
242,684
440,599
185,301
270,568
205,885
192,604
278,041
738,763
315.949
577,775
454,939
9,231.114
589i 623
548,890
207,958
202, 878
167,059
475,855
156,959
86,671
465,809
322,678
339,0i8
97,283
871,063
776,084
1,505,60S
250,501
147,333
300,116
160,000
6,000
16,000
7,500
30,000
3,850
50,000
20,003
*"25,'666"
2,000
25,000
3,000
18,500
85, 000
165, 000
15,000
7, 500
20,000
249
STATE BANK MEMBERSHIP.
Capital.
Surplus.
Total
resources.
DISTRICT NO. 11—Continued.
TEX AS—-continued.
Tyler—Peoples Guaranty State Bank
Valley Mills—Citizens State Bank
Valley V^ew—First Guaranty State Bank
Waco—First State Bank & Trust Co. of Waco....
Waxahachie—Guaranty State Bank & Trust Co.
Weatherford—First State Bank
Wellington—Wellington State Bank
Wharton—Security Bank & Trust Co
White Deer—First State Bank
Wills Point—First State Bank
Winnsboro—Merchants & Planters State B a n k . .
Wolfe City—First State Bank
Wood ville—Woodville State Bank
Wortham—First State Bank
Wylic—First State Bank
Total.
$100,000
30, 000
25,000
200, 000
200,000
125, 000
50,000
50, 000
25, 000
100, 000
30, 000
50, 000
30,000
50, 000
50, 000
$31,700
3,000
10, 400
30, 000
20,000
20, 000
75, 000
15, 000
1,500
35, 000
30, 000
25, 000
2,500
40, 000
$1,347, 528
158, 859
124, 060
2,117,104
1,333,034
1,078,020
622, 796
385, 900
290, 678
594, 386
520, 747
435, 912
128, 586
283, 567
345, 893
15,210,500
5,992,880
146,635,594
25,000
500,000
4,500
100,000
167,804
7,184,626
236,300
500,000
100,000
25,000
100,000
50,000
1,000,000
50,000
75,000
100,000
100,000
160,000
235,000
55,950
30,000
4,500
20,000
456,000
1,500
2,500
40,000
40,000
4,892.550
7,676,487
1,132,569
402,406
810,174
746,335
14,532,966
298,640
492,714
1,448,857
1,379,597
2,000,000
3,000,000
3,150,000
1,000,000
250,000
25,000
65,000
800,000
85,000
25,000
25,000
1,300,000
1,750,000
1,850,000
128,000
310,930
15,000
102,000
103,000
29,500
150
3,500
36,449,844
53,294,610
101,051,545
7,584,628
5,931,260
489,199
1,822,461
8,305,647
963,831
131,558
262,062
1,500,000
9,000,000
1,000,000
1,000,000
1,250,000
4,000,000
200,000
1,000,000
850,000
2,000,000
15,000
275,000
215,000
3,000,000
120,000
2,400,000
31,100,700
162,930,763
3,713,801
15,318,221
12,648,294
71,702,871
3,430,430
68,522,221
500,000
300,000
300,000
1,000,000
400,000
625,000
30,000
90,000
370,000
325,000
10,287,133
817,376
2,316,200
10,104,851
5,351,759
140,000
147,300
60,000
75,000
71,000
23,060
12,000
37,000
3,387,992
2,410,792
763,483
1,235,600
25,000
50,000
30,000
50,000
25,000
16,443
10,000
107,468
444,896
267,435
608,632
DISTRICT NO. 12.
ARIZONA.
(See also District No. 11.)
Buckeye—Buckeye Valley Bank
Phoenix—The Valley Bank
CALIFORNIA.
Alamdea—Alameda Savings Bank
Bakersfield—Security Trust Co
Bra wley—Imperial Valley Bank
Cedarville—Surprise Valley Bank
Chico—Peoples Savings & Commercial Bank
Downey—Los Nietos Valley Bank
Fresno— Fidelity Trust & Savings Bank
Fullerton—Standard Bank of Orange County
Holtville—The Holtville Bank
Kingsburg— Kingsburg Bank
Lemoore—Bank of Lemoore
Los Angeles—
Guaranty Trust & Savings Bank
Los Angeles Trust & Savings Bank
Security Trust & Savings Bank
Union Bank & Trust Co
Marysville—Hideout Bank
Norwalk—Bank of Norwalk
Placerville—Eldorado County Bank
Sacramento—The Peoples Bank
St. Helena—Bank of St. Helena
San Bruno—California Bank of San Mateo County
San Fernando—The San Fernando Valley Savings Ban:
San Francisco—
Anglo-California Trust Co
Bank of Italy
British American Bank
French-American Bank of Savings
Italian-American Bank
Mercantile Trust Co
The Mission Bank
San Francisco Savings & Loan Society
San Jose—
Garden City Bank & Trust Co
The Growers Bank
Santa Ana—Orange County Trust & Savings Bank
Santa Barbara—Commercial Trust & Savings Bank
Santa Maria—Bank of Santa Maria
Santa Monica—
Bank of Santa Monica
Ocean Park Bank
Sausalito—Bank of Sausalito
Turlock—Commercial Bank of Turlock
IDAHO.
Arco—Butte County Bank
Ashton—Security State Bank
Bellevue—Bellevue State Bank
Blackfoot—Blackfoot City Bank
250
ANNUAL REPORT FEDERAL RESERVE BOARD.
Capital.
Surplus.
Total
resources.
DISTRICT NO. 12—Continued.
IDAHO—continued.
Blackfoot—D. W. Standrod & Co
Burley—Burley State Bank
,
Castleford—Bank of Castleford
Cambridge—Peoples Bank
Drammond—First State Bank
Eagle—Bank of Eagle
Emmett—Bank of Emmett
Filer—Farmers & Merchants Bank
Genesee—Genesee Exchange Bank
Gooding—Citizens State Bank
Grangeville—Bank of Camas Prairie
Hansen—Bank of Hansen
Homedale—First Bank of Homedale
Idaho F a l l s Anderson Brothers Bank
Farmers & Merchants Bank
Kimberly—Bank of Kimberly
Kuna—The Kuna State Bank
Malad City—J. N . Ireland & Co., Bankers
May—Union Central Bank
Menan—J efferson State Bank
Meridian—Meridian State Bank
Mont our—Farmers & Stockgrowers Bank
Murtaugh—Bank of Murtaugh
Nezperce—Union State Bank
Oakley—Farmers Commercial & Savings Bank.
Orofino—Bank of Orofmo
Picabo—Picabo State Bank
Pocatello—Citizens Bank
Potlatch— Potlatch State Bank
Kexburg— Farmers & Merchants Bank
Rupert—Farmers & Merchants Bank
St. Anthony—St. Anthony Bank & Trust Co...
Star—The Farmers Bank
Sugar City—Fremont County Bank
Teton City—First State Bank
Tetonia—Farmers State Bank
Twin Falls—Twin Falls Bank & Trust Co
Victor—Victor State Bank
$100,000
89,400
25,000
40,000
25,000
25,000
60,000
25, 000
25, 000
25, 000
50, 000
25,000
25,000
100,000
150,000
35, 000
25, 000
40, 000
30, 000
25, 000
25, 000
25, 000
25, 000
50, 000
25, 000
25,000
25, 000
300, 000
50, 000
50, 000
35, 000
30, 000
25, 000
25,000
30, 000
25, 000
100,000
25,000
$85,000
17,880
1,250
6,000
2,100
25,000
2,500
12,500
15, 000
50,000
5,000
$1,995,665
958,242
62,160
326,320
66,294
275,078
879,458
215,240
63S, 682
398,832
729, 438
232,931
140,642
2,500
75,000
8,000
2,650,779
1,501,721
368,631
153,318
612,913
111, 082
191,872
240,316
156,465
123,395
394,085
251, 687
499,906
206,755
1,580,042
1,276,877
465,663
198,072
593,297
317,523
408,673
115,291
102,061
2,146, 838
174,952
15,000
5,000
15,000
20,000
25,000
5,000
12,000
30,000
12, 500
10,000
18, 000
74,046
399,372
356, 941
649,139
490,323
700, 807
283,232
269,303
1/476,148
327; 774
352, 674
297,104
120,000
30,000
13, 500
1,250
12, 500
2,500
2,500
3,000
850
3.500
10,' 000
15,000
5,000
5,000
60,000
10,000
10,000
30, 000
10,000
5,000
OREGON.
Athena—Athena State Bank
Aurora—Aurora State Bank
Central Point—Central Point State Bank
Dallas—Dallas City Bank
Enterprise—Enterprise State Bank
Gresham—First State Bank
Haines—Bank of Haines
Helix—Bank of Helix
Hood River—Butler Banking Co
Joseph—First Bank of Joseph
Lakeview—Lake County Loan <& Savings Bank.
Madras—Madras State Bank
Marshfield—
Bank of Southwestern Oregon
Scandinavian American Bank
Medford—Jackson County Bank
Moro—Farmers State Bank
Myrtle Point—Bank of Myrtle Point
North Portland—Live Stock State Bank
Oregon City—Bank of Oregon City
Pendleton—The Inland-Empire Bank
Pilot Rock—First Bank of Pilot Rock
Portland—
Hibernia Commercial & Savings Bank
Ladd & Tilton Bank
Reedsport—First Bank of Reedsport
The Dalles—Wasco County Bank
Tillamook—Tillamook County Bank
Woodburn—The Bank of Woodburn
Bingham Canyon—Bingham State Bank.
Brigham City—Security Savings B a n k . . .
Cedar C i t y Bank of Southern Utah
Iron Commercial & Savings Bank
25,000
25,000
25, 000
50, 000
50, 000
30, 000
25, 000
50, 000
100,000
50, 000
40, 000
25,000
100, 000
25, 000
100, 000
25, 000
50, 000
100, 000
100, 000
250, 000
30,000
200, 000
1,000, 000
25, 000
100, 000
40, 000
50,000
30,000 |
1, 044, 983
451, 510
1, 296, 464
275, 445
490, 663
1,337, 175
2. 068, 467
1, 226, 399
463, 324
100, 000 !
1,000, 000
1,250
5,371
10,000
15,000
5, 932, 836
27, 368, 239
171, 907
397, 187
759, 755
839, 069
16, 000
7,500
20, 000
5,000
15, 000
25, 000
50,000
50,000
50,000
1,000
20,000
373, 950
758,665
75, 000
50,000
70,000 j
5,000 !
671,100
297, 283
251
STATE BANK MEMBERSHIP.
Capital.
Surplus.
Total
resources.
DISTRICT NO. 12—Continued.
XJTAR—continued.
Delta—Delta State Bank
Duchesne—Bank of Duehesne
Ephraim—Bank of Ephraim
Fillmore—Fillmore Commercial & Savings Bank...
Fountain Green—Bank of Fountain Green
Gunnison—Gunnison Valley Bank
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—Myton State Bank
Ogden—Ogden Savings Bank
Parowan—Bank of Iron County
Payson—
Payson Exchange Savings Bank
State Bank of Payson
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 CityColumbia Trust Co
Deseret Savings Bank
•
,
McCornick & Co., Bankers
Tracy Loan & Trust Co
,
Utah Savings & Trust Co
Walker Bros., Bankers
Spanish Fork—Commercial Bank of Spanish Fork.
Vernal—Bank of Vernal
$25,000
25, 000
50, 000
50, 000
25, 000
50, 000
50, 000
•50, 000
$10, 000
3,500
25, 000
10, 000
13, 000
10, 000
30, 000
75, 000
$489, 414
174, 809
564, 382
239, 996
270, 444
337,155
593, 714
522, 437
100, 000
100, 000
150, 000
25, 000
50, 000
38, 311
150, 000
35, 000
25, 000
18, 000
50, 000
3,000
6, 000
14, 000
150, 000
21, 000
1,174, 592
668,882.
2,152, 892
264, 866
207, 533
175, 340
2, 207, 080
316,187
50, 000
50, 000
100, 000
50, 000
100, 000
300, 000
50, 000
45, 000
250, 000
500, 000
1,000, 000
222, 6G0
300, 000
500, 000
50,000
60,000
30, 000
13, 000 .
10, 000
70,000
12,000
31, 500
50, 000
45, 000
25, 000
300, 000
120,000
126, 250
29, 644
100, 000
10,000
15, 000
778, 492
460, 478
433,190
906,450
1, 035,693
2,308, 766
767,534
708, 727
1, 339, 020
5, 793, 820
12, 993, 221
909,657
1, 854, 205
12,249,485
585,658
510, 765
WASHINGTON.
Albion—Albion State Bank
Almira—
Almira State Bank
Farmers State Bank
Bellingham—Northwestern State Bank
Buena—Buena State Bank
Centralia—Centralia State Bank
Chehalis—Coffman-Dobson Bank & Trust Co
Colfax—First Savings & TrustBank of Whitman CountyDavenport—Lincoln County State Bank
Ellensburg—The Farmers Bank
Enumclaw—
Peoples State Bank
State Bank of Enumclaw
Everett—Bank of Commerce
Farming ton—Bank of Farmington
Garfield—First State Bank
Goldendale—State Bank of Goldendale
Hoquiam—Lumbermen's Bank
La Crosse—
First State Bank
Security State Bank
Molson—-Molson State Bank
Odessa—Farmers & Merchants Bank
Okanogan—Commercial Bank
Pine City—Pine City State Bank
Port Townsend—Merchants Bank
Pullman—Pullman State Bank
Puyallup—
Citizens State Bank
Puyallup State Bank
Reardan—Farmers State Bank
Renton—
Citizens Bank of Renton
Renton State Bank
Rockford—Farmers & Merchants Bank
Rosalia—Bank of Rosalia
St. John—Farmers State Bank
25,000
6,000
50, 000
25,000
100, 000
25,000
100, 000
150, 000
75, 000
50, 000
100, 000
25,000
30, 000
100, 000
25,000
50, 000
75,000
100,000
13,000
6,500
80, 000
1,000
11,000
100,000
17, 500
10,000
25,000
7,250
16,000
25, 000
7,500
15,000
7,500
25,000
474, 253
234, 737
1, 619, 848
204, 723
786, 863
3, 323, 219
487, 667
463, 489
1,465, 345
545,354
746, 873
1,778,494
313, 316
487, 813
564, 319
1,135, 035
60,000
30,000
25,000
25,000
50,000
25,000
75,000
37,500
40,000
6,405
10,000
5,000
10,000
1,000
25, 000
10,000
608,217
148, 319
237, 281
361,528
503, 632
172, 476
1,063, 271
765, 504
50,000 !
50,000 I
50,000 I
10,000
1,000
20,000
963, 823
916, 773
618, 400
5,000
2,500
5,000
5,000
8,000
706,208
207, 299
291, 393
378, 087
339.85^
25,000
25, 000
25,000
25,000
40,000
122,285
252
ANNUAL. REPORT FEDERAL RESERVE BOARD.
DISTRICT NO. 12—Continued.
WASHINGTON—continued.
SeattleDexter Horton Trust & Savings Bank
Guaranty Bank & Trust Co
Scandinavian American Bank
South Bend—Pacific State Bank
Spokane—
Spokane & Eastern Trust Co
Washington Trust Co
Sprague—The Farmers State Bank
Stanwood—
Bank of Stanwood
Citizens State Bank
Tacoma—Puget Sound Bank & Trust Co
Tekoa—
Citizens State Bank
Tekoa State Bank
Toppenish—
Central Bank of Toppenish
Traders Bank
Uniontown—Farmers State Bank
Walla Walla—
The Farmers & Merchants Bank of Walla Walla..
Peoples State Bank
Wilbur—The State Bank of Wilbur
YaMma—Yakima Valley Bank
$400,000
250,000
1.000,000
100,000
1100, 000
49,500
200, 000
50,000
$6,403,816
1, 209,574
18, 596,059
1,483,298
1,000,000
200,000
25,000
250,000
40, 000
3,000
12, 801, 738
1, 542,281
168,151
25,000
25, 000
300,000
25, 000
2,500
40,000
680,155
232,456
3,667, 495
25,000
30,000
15,000
15,000 |
480,130
479, 535
50,000
25, 000
25,000
25,000
15, 000
3,000
754, 541
787,758
336,728
200,000
100, 000
50, 000
100, 000
40,000
50, 000
10, 000
40, 000
2,017,892
2,034,670
550, 675
1,990, 272
50,321,411
Total.
22,433,533
869,883,573
Statement showing membership of State banks and trust companies in the Federal Reserve
System based upon reports of condition as of Dec. 29, 1920, classified by districts as to
number of banks, capital, surplus, and resources.
[In thousands of dollars.]
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 C i t y . . .
11—Dallas
12—San Francisco..
Total
Capital.
Surplus.
! Total resources.
$35,255
175, 368
24, 835
41, 884
14, 758
25, 050
98, 331
27,675
9,957
8,695
15,186
50, 526
$38, 282
187, 442
48, 216
69, 596
9, 523
16, 339
81, 401
21, 571
3,402
3,308
5, 924
22, 499
S724, 063
3,929, 629
382, 301
879,621
158, 937
352,480
1,774,753
386, 546
122, 785
136, 221
137, 530
841, 928
527,520 !
507, 503
9,826,794
253
STATE BANK MEMBERSHIP.
Abstract of condition reports of State bank and trust company members of the Federal
Reserve System as of Dec. 31, 1919, May 4, June 30, Nov. 15, and Dec. 29, 1920.
[In thousands of dollars.]
Dec. 31,
1919—1,181
banks.
May 4,
1920—1,306
banks.
J u n e 30,
1920—1,374
5,508,993
5,682,754
6,133
banks.
Nov. 15,
Dec. 29,
1920—1,449 1920—1,481
banks. 1
banks.2
RESOURCES.
Loans and discounts
Overdrafts
Customers' liability on account of
letters of credit
Customers' liability on account of
acceptances
Liberty bonds (exclusive of Liberty
bonds borrowed)
Other United States bonds (exclusive
of United States bonds borrowed)
United States Victory notes
United States certificates of indebtedness
War savings and thrift stamps and
Treasury savings certificates actually
owned
Stock of Federal Reserve Bank
Other bonds, stocks, etc. (exclusive of
securities borrowed)
Bankin g house
Furniture and fixtures
Other real estate owned
Lawful reserve with Federal Reserve
Bank
Gold coin and certificates
All other cash in vault
Items with Federal Reserve Bank in
process of collection
Due from banks, bankers, and trust
companies
Exchanges for clearing house, also
checks on other banks in same place..
Outside checks and other cash items...
Approximate interest earned but not
collected
Other assets
Total.
5,249,833
5,362
5,702
1,016
231,019
335,752
1,723
230,015
5,713,301
5,695
5,640,043
5,708
1,797
1,933
603
235,587
234,758
212,494
360,042
360,198
381,453
11,238
104,451
7,598
101,997
6,731
105, 774
9,851
131,057
339,777
13,455
103,663
307,026
249,226
197,263
164,861
135,232
1,327
25,850
1,217
28,282
1,052
29,198
955
30,471
765
30,887
1,300,952
132,434
11,164
25,748
1,292,924
142,296
12, 845
26, 859
1,273,900
148,988
13,522
24,117
1,283,226
157,676
18,051
26,520
1,340,247
161, 070
16, 882
26, 957
591,702
17,692
165,756
599,429
17,426
148,040
593,415
20,322
152,034
609,443
15,306
148,412
578,688
13, 858
122,640
125,337
133,007
143.515
676,704
436,855
431,583
401,221
446,317
64,653
246,512
37,916
384,338
47,204
398.516
44,426
381,113
289,333
34, 368
24,257
35,595
20,406
129, 439
25,738
129,159
24,343
148,787
26,219
145, 474
9,913,707
9,718,337
10,006,842
10,041,209
9,826, 794
436,324
454,877
481,536
486,840
493,628
494,568
517,980
502,961
527, 520
507,503
115,300
151,142
150,043
175,918
183,445
15,803
15,681
10,592
1,324
17,746
18, 863
19,643
2,508
19,632
21,346
11,104
5,521
21,898
23,617
23,453
4,316
22,406
25,118
21, 734
4,053
755,303
604,365
636,346
577,575
534,767
303,064
4,834, 830
2,165, 786
201,710
182,685
4,713. 460
2,337; 635
218,108
4, 851, 597
2,426,035
76, 521
m, 498
268,840
4,685,330
2,523, 695
74,381
210, 728
4,519, 602
2, 556, 818
106,166
294,097
245,972
280,506
267,245
58,048
56,665
170,682
122,213
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 Bank
Due to banks, bankers, and trust companies
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 with Federal
Reserve Bank
Liability for rediscounts with other
banks
Ratio of reserve with Federal Reserve
Bank to net deposit liability (per
cent)
1
One bank not reporting.
309,197
14,311
8,087
233,379
38,139
35,216
9,374
235, 422
51, 284
39,986
17,756
242,369
46,333
12,002
241,276
49, 413
12,339
218, 292
52, 393
9,913,707
9,718,337
10,006, 842
10,041,209
9, 826, 794
318,261
326,108
327,513
436,092
433, 514
8,028
10,765
16,763
28,690
29,663
10.4
10.5
10.1
10.7
10.4
2
Three banks not reporting.
254
ANNUAL REPORT FEDERAL RESERVE BOARD.
Abstract of condition reports of all member banks (both national and State) of the Federal
Reserve System as of Dec. 31, 1919, May 4, June 30, Nov. 15, and Dec. 29, 1920.
[In thousands of dollars.]
Dec. 31,
May 4,
June 30,
Nov. 15,
Dec. 29,
1919—
1920—
1920—
1920—
1920—
9,066 banks. 9,291 banks. ',399 banks. 9,567 banks.1 9,606banks.2
RESOURCES.
Loans and discounts
Overdrafts
Customers'liability on account of letters of
credit
Customers' liability on account of accept- I
ances
I
United States Governmentseeuritiesowned41
Stock of Federal Reserve Bank
i
5
Other bonds, stocks, and securities
j
Banking house
!
Furniture and fixtures
Other real estate owned
Lawful reserve with Federal Reserve Bank.
Cash in vault
Items with Federal Reserve Bankin process
of collection
Due from banks, bankers, and trust companies
Exchanges for clearing house, also checks
on other banks in same place
Outside checks and other cash items
Redemption fund and due from United
States Treasurer
Approximate interest earned but not collected
Other assets
17,032,747
22,403
8,706
624,571
3,506, 426
87, 434
3,224,007
432, 780
50,405
69,177
1,903, 814
17,794,164
22,080
7,482
18,022,660
24,887
17,731,760
22,676
11,016
566,678
2, 759, 428
99, 392
3,261, 556
497, 882:
67, 685,
73, 901
1, 763, 424
655,405
3,081,156
92, 435
3,175. 951
453, 922
55, 808
70, 819
1,865,638
651,997
2,941,655
94, 485
3,124, 897
464, 634
57, 763
69,066
1,838,648
619,377
2,786,109
98, 744
3,168,147
489, 770
67,279
72, 420
1,827,450
691,173
620,897
621, 817
611,067
579,235
580,063
615,116
674,005
544,815
2,518,709
1,509,006
147,276
1,874,173
867,427
102,996
1,824,041
1,228,799
126,269
1,774,326
1,272,584
120,864
1,576,622
963,881
91, 222
41,489
38,187
38,505
39,433
38,350
69,354
97,544
66,070
323,899
73,728
313,164
72,576
371, 735
77,449
369, 552
32,194,301 32,113,433
31,184,198
32,616,256 31,748,572
Total
18,076,141
22,560
677,925
LIABILITIES.
1,787,160
1,518,953
1, 799,061
1, 526,901
588,697
491,872
561,427
659,515
Approximate interest and discount col88,786
76,576
93,174
lected but not earned
96,450
62, 560
55, 808
67,689
Amount reserved for taxes accrued
74, 683
39, 404
24, 843
26, 474
Amount reserved for interest accrued
45, 603
21,547
14,189
24,682
Due to Federal Reserve Bank
28,402
Due to banks, bankers, and trust companies 4,091,400 3,524,359 3,461,016 3,201, 791
Certified and cashiers' or treasurers' checks
518, r,17
90(3,515
' 648,361
outstanding
714,709
15,156,169 14,833, 215 15,067,172 14,779,480
Demand deposits
5,304, 793 5,747, 532 5,910,926 6,144, 064
Time deposits
648, 555
United States deposits
190,168
260,179
219,831
1,246,721 1,122,067 1,063,748
Bills payable with Federal Reserve Bank.. 119O?T1
Bills payable other than with Federal Re133,497
212,232
serve Bank
155,443
71,488
Cash letters of credit and travelers' checks
36,109
outstanding
28,896
18,365
17,173
673,852
641,018
Acceptances
„
673,565
647,801
National-bank notes outstanding
687,931
685,237
687,653
697,391
United States Government securities bor182,665
123,143
rowed
130,860
131,209
6,119
5,578
4,582
Other bonds and securities borrowed
4,844
72,665
Other liabilities
67, 202
83, 945
678, 933
Capii-al stock paid in
Surplus fund
Undivided profits, less expenses and taxes
Total.
Liability for rediscounts, including those
with Federal Reserve Bank e
Ratio of reserve with Federal Reserve Bank
to net deposit liability (per cent)
1
2
3
4
1,593,833
1,375, 727
32,616,256
1,695,555
1,446,915
1,717,014
1,480,456
31,748,572 32,194,301
95, 472
71, 634
43, 678
21, 953
3,062, 304
593,389
14,019, 901
6,187, 921
316,191
1,026, 492
208,440
17, 901
593, 708
693, 415
140, 451
4,377
82, 076
32,113,433
31,184,198
1,299,788
1,551,047
1,558,792
1,917,989
1,894, 818
10.3
10.1
9.9
10.1
10.0
One bank not reporting.
Three banks not reporting.
Included with loans and discounts.
Includes United States Government securities borrowed by National Banks,
s6 Includes other bonds and securities borrowed by National Banks.
Includes acceptances of other banks and foreign bills of exchange sold with indorsement or other guaranty
by National Banks.
FIDUCIARY POWERS GRANTED.
255
FIDUCIARY POWERS GRANTED TO NATIONAL BANKS.
The following is a complete list of national banks which have been
granted fiduciary powers to December 31, 1920. For a description of
the powers granted see footnotes on page 266.
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 bv an asterisk.
DISTRICT NO. 1—Continued.
DISTRICT NO. 1.
MASSACHUSETTS—continued.
CONNECTICUT.
(See also District No. 2.)
Ansonia
Ansonia National Bank.1
Bristol
Bristol National Bank.2
Hartford
Colonial National Bank.33
First National Bank.i
Hartford-Aetna
National
Bank.3*
Phoenix National Bank.* 3
Middletown
Middletown National Bank.
Naugatuck
Naugatuck National Bank.3 1
New Britain
New Britain National Bank.
New Haven
First National Bank.2
Merchants National Bank.2
National Tradesmens Bank.3
Second National Bank.1
The New
Haven Bank, N.
B. A.1
New London
National Bank of Commerce.25
New London City National
Bank.«
N orwich
Thames National Bank.i 10
Torrington
Torrington National Bank.
Wallingford
First National Bank.1
Waterbury
Citizens National Bank.11
Manufacturers
National
Bank.1
Waterbury National Bank.1
MAINE.
Bangor
Bar Harbor
Bath
Belfast
Lewiston
Norway
Portland
Waterville
First National Bank.12
First National Bank.3
Bath National Bank.2
City National Bank.2
Manufacturers
National
Bank.12
2
Norway National Bank.
Canal National Bank.121
First National Bank.
Portland National Bank."
Ticonic National Bank.3
MASSACHUSETTS.
First National Bank.2 11
Graylock National Bank.
First National Bank.1 3
Beverly National Bank. 1
Boylston National Bank.1
Citizens National Bank.
First National Bank.11
Fourth-Atlantic
National
Bank.1
Merchants National Bank.11
National Shawmut Bank.
National Union Bank.8
Peoples National
Bank of
Roxbury.11
Second National Bank.1
For footnotes see page 266.
Adams
Amherst
Beverly
Boston
Boston
Brockton
Edgartown
Fall I? iver
Fitchburg
Foxboro
Gardner
Gloucester
Great Barrington
Haverhill
Holyoke
Lawrence
L eominster
Lowell
Lynn
Marlboro
Methuen
New Bedford
Newburyport
North Adams
Northampton
Pittsfleld
Plymouth
Provincetown
Reading
Salem
Southbridge
Springfield
Tisbury
Turner Falls
Uxbridge
Wareham
Water town
Webster
Woburn
Worcester
Yarmouthport
Webster1 & Atlas National
Bank.
Brockton National Bank.1
Home National Bank.3
Edgartown National Bank.4
Massosoit
Pocasset National
Bank.1
Metacomet National Bank.1
Safety Fund National Bank.i
1
Foxboro National Bank.
First National Bank.1
Cape Ann National Bank.1
National Mahaiwe Bank.1
Essex National Bank.*
First National Bank.3
Merrimack National Bank.3
City National Bank.3 3
Holyoke National Bank. 1
Bay State National Bank. 3
Lebminster National Bank.
Merchants National Bank.10
Old Lowell National Bank."
Central National Bank.2
Manufacturers
N a t i o n al
Bank.1
National City Bank.is3
First National Bank.
Peoples National
Bank of
Marlborough.1
2
National Bank of Metheun.
First National Bank.1
1
Merchants National Bank.
Merchants National Bank.2 1
North Adams National Bank.1
NorthamptonNationalBank.2
Agricultural National Bank.
Pittsfield National Bank.3 3
Plymouth National Bank.
First National Bank.1
First National Bank.3
Merchants National Bank.1 1
Southb ridge National Bank.
Chapin National Bank.1
Chicopee National Bank.1 2
Springfield National Bank.
The Third National
Bank of
Springfield.1
Martha's2 Vineyard National
Bank.
Crocker National Bank.11
Blackstone National Bank.3 3
National Bank of Wareham. 3
Union Market NationalBank.
First National Bank.3
Woburn National Bank.14 3
Mechanics National Bank.
Merchants National Bank.1
The First National
Bank ofYarmouth.1
256
ANNUAL REPORT FEDERAL RESERVE BOARD.
DISTRICT NO. 1—continued.
DISTRICT NO. 2—Continued.
NEW JERSEY—continued.
NEW HAMPSHIRE.
Berlin
Claremont
Concord
City National Bank.e
3
Claremont National Bank.
First National Bank.1
Mechanics National Bank.1'
National State Capital Bank.15
Merchants National Bank.<
3
Straff ord National Bank.15
Ashuelot National Bank.
3
Keene National Bank.
Amoskeae; National Bank.13
Manchester National Bank.«
Merchants National Bank.15 4
Indian Head National Bank.
Second National Bank.15
Citizens National Bank.15 15
Wolfeboro National Bank.
Dover
Keene
Manchester
Nashua
Newport
Wolfeboro
RHODE ISLAND.
Aquidneck National Bank.3
Newport
VERMONT.
Peoples National Bank.1
National4 Bank of Bellows
Falls.
County National Bank.1
First National
Bank of Bennington.1
First National Bank.3 1
Peoples National Bank. 2
Vermont National Bank.
First National Bank.3
Citizens National Bank.3
The Baxter5 National Bank of
Rutland.
First National Bank.3
Welden National Bank.3
State National Bank.*
Barre
Bellows Falls
Bennington
Brandon
Brattleboro
Montpelier
Poultney
Hutland
Springfield
St. Albans
Windsor
DISTRICT NO. 2.
Long Branch
Montclair
Morristown
Newark
New Brunswick
Orange
Passaic
Paterson
Perth Amboy
Phillipsburg
Plainfield
Red Bank
Ridgewood
Rutherford
Somerville
South Amboy
South River
Sussex
NEW YORK.
Adams
Albany
CONNECTICUT.
(See also District No. 1.)
Bridgeport
Danbury
Greenwich
Norwalk
Ridgerield
•South Norwalk
.Stamford
City National Bank.1
Connecticut National Bank.1
First-Bridgeport National
Bank.*
City National Bank.1
Danbury National Bank.1 1
Greenwich National Bank. 3
National Bank of Norwalk.
First National Bank.i
City National Bank.31
First National Bank.
NEW JERSEY.
(See also District No. 3.)
Arlington
The First National
Bank of
Arlington.1
Asbury Park
Merchants National Bank.1
Atlantic Highlands..Atlantic 4 Highlands National
Bank.
Belvidere
Belvidere National Bank.2 3
Bloomfield
Blodmfield National Bank.
1
Boonton
Boonton National Bank.
Boundbrook
First National Bank.3
Cranbury
First National Bank.a
Dover
National Union Bank.113
Elizabeth
National State Bank.
The Peoples National
Bank
of Elizabeth.1
Frenchtown
Union National Bank.1*
Garfield
The First 1National Bank of
Garfield.
Hoboken
First National Bank.3
The Second lNational Bank of
Hoboken.
Jersey City
First National Bank.1
Lambertville
Lambertville National Bank.
For footnotes see page 266.
Citizens National Bank.i
First National Bank.11
First National Bank.
National Iron Bank.1
Merchants & Manufacturers
National Bank.3
National Newark
& Essex
Banking Co.1
National State Bank.1
North Ward National Bank.3
National 1 Bank of N e w
Jersey.
The Peoples National
Bank
of New Brunswick.1 2
Orange National Bank.1
Second National Bank. 1
Passaic National Bank.
First N ational Bank.1** 1
Paterson National Bank.
Second National Bank.1
City National Bank.11
First National Bank.
Phillipsburg National Bank.*
City National Bank.3
The Broad Street National
Bank of Red Bank.1
Second National Bank.1
The Citizens National
Bank
of Ridgewood.1
The First National
Bank
of
Ridgewood.1
Rutherford National Bank.3
Second National Bank.3
First National Bank.11
First National Bank. 3
Farmers National Bank. ,
Amsterdam
Auburn
Brooklyn
Buffalo
Canandaigua
Canton
Carthage
Catskill
Clayton
Cooperstown
Corning
Cuba
Dunkirk
Edwards
Elmira
Far Rockaway
Fredonia
Freeport
Fulton
Geneva
Glens Falls
Gloversville
Goshen
,
Farmers National Bank.1
First National Bank.fi
National Commercial Bank &
Trust Co.2
New York State National
Bank.7
First National Bank.1
Cayuga County National
Bank.2
The N a t i1 o n a l Bank of
Auburn,
First National Bank.1
Nassau National Bank.1
Manufacturers &1 T r a d e r s
National Bank.
Canandaigua National1 Bank.1
First National Bank.
St. Lawrence County National Bank."
Carthage National Bank.1
Catskill National Bank.2 5
National Exchange Bank.
First National Bank.1
Second National Bank.2
First National Bank
& Trust
Co. of Corning.2
Cuba National Bank.1
Lake Shore National Bank.1
Merchants National Bank.1
Edwards National Bank.s 10
Merchants National Bank.
Second National Bank.1
National
Bank of Far Rockaway.5
National Bank of Fredonia.1
Citizens National
Bank of
Freeport.1
Citizens 1National Bank of
Fulton.
Geneva National Bank.5 2
Merchants National Bank.
City National Bank.1
Fulton 1County N a t i o n a l
Bank.
National 1Bank of Orange
County.
257
FIDUCIARY POWERS GRANTED.
DISTRICT NO. 2—Continued.
DISTRICT NO. 2—Continued.
NEW YORK—continued.
Farmers National Bank.5
Washington County National
Bank.5
Hempstead
First National Bank.*
2
Herkimer
Herkimer N ational Bank.
Hoosick Falls
Peoples National Bank.21
Hornell
Citizens National Bank. 1
Hudson
Farmers National Bank.
First National Bank. 1
Hudson Falls
The Peoples National Bank
of Hudson Falls.i
The Sandy Hill National
Bank of Hudson Falls.1
Ilion
Ilion National Bank.11
Ithaca
First N ational Bank.
Jamestown
American National
Bank of
Jamestown.1
National2 Chautauqua County
Bank.
Kingston
Rondout National Bank.1
The First National
Bank of
Rondout.1
1
Lackawanna
Lackawanna National Bank.
1
Little Falls
Little Falls National Bank.
1
Lockport
National Exchange Bank.
Niagara 1 County National
Bank.
Lowville
The Black
River National
Bank.1
Middletown
Merchants National Bank.1
Mineola
First National Bank.5
Morristown
Frontier National Bank.5
Mount Vernon
First National Bank.1
Newburgh
Highland National Bank.1
New York City
American
Exchange National
Bank.1
Atlantic National Bank.1 1
Bank of New York NBA.
Bronx National Bank.15
Chase National Bank.
Chatham & Phenix National
Bank.1
Chemical National
Bank of
New York.1
Coal & Iron National 1Bank.1
First National Bank. 1
Garfield National Bank.
Gotham National Bank.12
Hanover National Bank. 1
Harriman National Bank.
Irving National Bank.1 1
Liberty National Bank.
Mechanics
& Metals National
Bank. 2
Merchants National Bank.1
National American
Bank of
New York.1
2
National Bank of Commerce.
National City Bank.11
National Park Bank.
Seaboard National Bank.1
North Tonawanda... State National Bank.1
Norwich
Chenango Nations 1 Bank.21
National Bank of Norwich.
Nyack
Nyack National Bank.1
Ogdensburg
National
Bank of Ogdensburg.2
Olean
The Exchange
National Bank
of Olean.1'
Oneida
Oneida 1 Valley
National
Bank.
Oneonta
Citizens National Bank.1
Wilber National Bank.i1
Oswego
Second National Bank.
Ovid
First National Bank.* 1
Peekskill
Peekskill National Bank.
Westchester County National
Bank.i
Plattsburg
Plattsburg 1National Bank &
Trust Co.
Port Chester
First National Bank.i
Port Jervis
First National Bank.1
National Bank of Port Jervis.1
For footnotes see page 266.
Granville
NEW YORK—continued.
Poughkeepsie
Richfield Springs
Riverhead
Rome
Saratoga Springs
Southampton
Stapleton
Sufiern
Tarrytown
Troy
Utica
Vernon
Walton
Warsaw
Watertown
Westfield
Yonkers
Fallkill National Bank.1
Farmers & Manufacturers
National Bank.1
First National Bank.5
Suffolk 5 County
National
Bank.
1
Farmers National Bank.
First National Bank.25
First National Bank.
Richmond
Borough National
Bank.5
SufTern National Bank.1 7
Tarrytown National Bank.
The 'Manufacturers National
Bank of Troy .i
Union National Bank.1 1
Oneida National Bank. 1
Utica City National Bank.18
National Bank of Vernon.
First National Bank.1
The Wyoming County 1National Bank of Warsaw.
Jefferson1 County National
Bank.
Watertown National Bank.26
National Bank of Westlield.
First 1National Bank of Yonkers.
DISTRICT NO. 3.
DELAWARE.
Laurel
Milford.
Seaford
Wilmington
Peoples National Bank.2
First National Bank.1
First National Bank.a
Central National
Bank of Wilmington.1
NEW JERSEY.
(See also District No. 2.)
Atlantic City
The Chelsea National
Bank
of Atlantic City.1
Union National Bank.4
3
Atlantic City National Bank.
Burlington
Mechanics National Bank.x
Camden
The First 1National Bank of
Camden.
National State Bank.1
5
Cape May
Merchants National Bank.
Elmer
First National Bank.1
Glassboro
First National
Bank of Glassboro.1
Haddonfield
Haddonfield National Bank.1
Medford
Burlington County1 National
BankofMedford.
Merchantville
The First National
Bank of
Merchantville.1
Princeton
First National Bank.3
Salem
Salem National Banking Co.11
Swedesboro
Swedesboro National Bank.
Trenton
Broad Street National1 Bank.3
First National Bank.
Mechanics National Bank.1 1
Ventnor City
Ventnor City National Bank.
Woodbury
First National Bank. 1
Woodstown
Woodstown National
Bank
of Woodstown.1
PENNSYLVANIA.
(See also District No. 4.)
Allentown
Ambler
Annville
Atglen
Belleville
Bethlehem
Allentown National Bank.21
Merchants National Bank.
First National
Bank of
Ambler.1
3
Annville National Bank.
Atglen National Bank. 4
Belleville National Bank.*
Bethlehem National Bank.i 2
Leliigh Valley National Bank.
258
ANNUAL REPORT FEDERAL RESERVE BOARD.
DISTRICT NO. 3—Continued.
DISTRICT NO. 3—Continued.
PENNSYLVANIA—continued.
PENNSYLVANI A—continued.
Bloomsburg National Bank.1
Miners National Bank.3
The National
Bank of Boyertown.1
Catasauqua
National 1 Bank of Catasauqua.
1
Clearfield
Clearfield National Bank.
1
County National Bank.
4
Danville
First National Bank.
DuBois
Deposit National Bank.31
DuBois National Bank.
Emaus
Emaus National Bank.1
Emporium
First National Bank.x
1
Ephrata
The Ephrata National Bank.
4
Farmers National Bank.
1
Greencastle
First National Bank.
Harrisburg
Merchants National Bank.3
Hazleton
The First National
Bank of
Hazleton.1
3
Hazleton National Bank.
Huntingdon
First National Bank.1 2
Union National Bank.
Jenkintown
The Jenkintown National
Bank.^
Johnstown
First National Bank.2
4
Lancaster
Conestoga National Bank.
Fulton National Bank.1
Lancaster
County National
Bank.1
Lansdale
The First National
Bank of
Lansdale.1
Lebanon
First National
Bank
of
Lebanon .l
Lititz
Farmers National Bank.3
Lock Haven
„. .The County National
Bank of
Lock Haven.1
Mahanoy City
Union National Bank.2 1
Manheim
Keystone National Bank.
Marietta
Exchange National Bank.33
Maytown
Maytown National Bank.
Mount Carmel
Union National Bank.1
Mount Joy
The First National
Bank of
Mount Joy.1
Union National
Mount
Joy
Bank.1
Mountville
Mountville National Bank.33
Myerstown
Myerstown N ational 3Bank.
Nanticoke
First National Bank.
Nazareth
Nazareth National Bank.1
New Holland
New Holland National3Bank.33
Newville
First National Bank.
Oxford
National Bank of Oxford.1
Patton
...First National Bank.33
Pen Argyl
First National Bank.
Philadelphia
The Broad Street National
Bank of Philadelphia.10
Corn 1Exchange National
Bank.
Eighth National Bank.3
Fourth Street National Bank.&
National2 Bank of Germantown.
Ninth National Bank.11
Penn National Bank.
Philadelphia National Bank.11
Quaker City National Bank.
Southwark National Bank.2
Textile National Bank.2 1
Uuion National Bank.
Philipsburg
Moshannon National 1Bank.1
Pittston
First National Bank.
PortAllegany
The First National
Bank of
Port Allegany.1
1
Pottstown
National Bank of Pottstown.
1
National Iron Bank.
1
Reading
Reading National Bank.
Penn National Bank.3
Red Lion
Red Lion
First National
Bank.1
Scranton
Third National Bank.1
Shickshinny
The First National Bank of
Shickshinny."
Spring City
National Bank of Spring
City.i
For footnotes see page 266.
Bloomsburg
Blossburg
Boyertown
First National Bank.31
First National Bank.
Tamaqua National Bank.1
Grange National Bank.3 3
National Bank of Topton.
Citizens National Bank.l
Farmers & Merchants 1National Bank of Tyrone.
First National Bank.l
National 1Bank of Chester
County.
3
NationalBank of West Grove.
Second National Bank.1 1
Wyoming National Bank.
First National Bank.1
The Lycoming
National
Bank.1
West Branch National Bank.31
Williamsport NationalBank.
First National Bank.1
First National Bank of York.1
Industrial National
Bank of
West York.3
Western National Bank.1
Stroudsburg
Sunbury
Tamaqua
Tioga
Topton
Towanda
Tyrone
West Chester
West Grove
Wilkes-Barre
Williamsport
Wrightsviile
York
DISTRICT NO. 4.
KENTUCKY.
(See also District No. 8.)
Ashland
Brooksville
Mount Sterling
Newport
Paris
Pineville
Somerset
Williamsburg
The Ashland National3 Bank.19
First National Bank.
MountSterlingNationalBank.3
Traders NationalBank.19 19
American National Bank.19
Newport National Bank.
First National Bank.1
Bell National
Bank of Pineville.1
The Farmers719National Bank
of Somerset.
First National Bank.3
OHIO.
Akron
Ashtabula
Athens
Bellaire
Bucyrus
Canton
Cadiz
Cincinnati
Cleveland
Columbus
Coshocton
Dayton
Defiance
Fostoria
Galion
First-Second National
Bank.2^
National City Bank.2o
11
NationalBank of Ashtabula.
Bank of Athens, N. B.
A.11
First National Bank.20
First National Bank.20
The City15National Bank of
Canton.
First National Bank.s
The Fourth
National Bank of
Cadiz.11
Atlas National Bank.20 11
Citizens National Bank.
Fifth-Third National11Bank.20
First NationalBank.
Second National Bank.11
Brotherhood of Locomotive
Engineers Cooperative NationalBank of Cleveland.1
The Central National11 Bank
Savings & Trust Co.
National City Bank.11
Northern National
Bank of
Cleveland.11
Union 11
Commerce National
Bank.
City National Bank.1*
Commercial National Bank.515
Huntington National Bank.
The Ohio NationalBank.11 20
Commercial National -Bank.
'
20
Merchants National Bank.
20
Winters National Bank.
20
First National Bank.
20
Merchants NationalBank.
Union National Bank.1120
Citizens National Bank.
259
FIDUCIARY POWERS GRANTED.
DISTRICT NO. 4—Continued.
DISTRICT NO. 5.
OHIO—continued.
DISTRICT OF COLUMBIA.
First National Bank.20 11
Merchants National Bank.
Kent National Bank.11
Lebanon National Bank.20 11
NationalBank of Commerce.
Citizens National Bank.5
Central National Bank.
20
First NationalBank.20
The National City Bank
&
11
Trust Co. of Marion.
Merchants National Bank.20
15
Painesville National Bank.
Citizens 1 National Bank of
Piqua.
Piqua National Bank.1120
Second National Bank. 6
Citizens National Bank.
National Exchange Bank.11
Commercial National 11Bank.11
Tiffin NationalBank. 5
Northern NationalBank.
First National Bank.11 6
Citizens National Bank.
Clinton 20 County National
Bank.
Commercial National
Bank of
Youngstown.11
First National Bank.*20
First NationalBank.
Old Citizens National Bank.11
Hamilton
Hillsboro
Kent
Lebanon
Lorain
Mansfield
Marietta
Marion
Massillon
Painesville
Piqua
Ravenna
Sidney
Steubenville
Tiffin
Toledo
Troy
Urbana
Wilmington
Youngstown
Zanesville
PENNSYLVANIA.
(See also District No. 3.)
Ellwood City
Franklin
Greensburg
Greenville
Grove City
Meadville
New Brighton
New Castle
Oakmont..
Oil City
Pittsburgh
Punxsutawney
Sharon
Titusville
Warren
Washington
Ze;ienople
First National Bank.1
Lambertqn National 1Bank.1
First National Bank.
First National Bank.3
The Grove
City National
Bank.1
The First National
Bank of
1
Grove City.
New First National Bank."
Union National
Bank of New
Brighton.1
First NationalBank.61
First NationalBank.
Oil City National Bank.1
Bank of Pittsburgh N. A.1
The Diamond National
Bank
of Pittsburgh.1
Duquesne National Bank.11
The First National Bank. 5
Monongahela National Bank.
3
National Bank of America.
Peoples National Bank .5
Second National
Bank of
Allegheny.1
Third National Bank.11
Union NationalBank. 1
Western National Bank.
„ .Punxsutawnev
N a t i o 11 al
Bank.1
The First1 National Bank of
Sharon.
3
McDowell National Bank.
Second National Bank.1 1
Warren National Bank.18
Citizens National Bank.
First National Bank.1 3
Peoples National Bank.
WEST VIRGINIA.
(See also District No. 5.)
Elm Grove
First National Bank of Elm
Grove.1
New Cumberland First National Bank.s
Sisterville
Farmers & Producers
NationalBank.1
Wheeling
National1 Bank of West Virginia.
For footnotes see page 266.
Washington
Commercial National Bank.s
National Bank of Washington, a
National Metropolitan Bank.2
MARYLAND.
Baltimore
Cumberland
Frederick
Hagerstown
Hyattsyille
New Windsor
PocomokeCity
Rising Sun
Rockville
Salisbury
Merchants-Mechanics
First
NationalBank.1
Second NationalBank.2
Western National
Bank of
Baltimore.1
Second National Bank.1
Farmers & Mechanics
National Bank.3
1
Second National Bank.
3
First NationalBank.
First NationalBank.3 1
Citizens National Bank.
NationalBank of Rising Sun.3
Montgomery County National
Bank.*
Salisbury National Bank.1
NORTH CAROLINA.
Charlotte
Elizabeth City
Goldsboro
High Point
New Bern
Oxford
Commercial National Bank.1
Merchants & 1 Farmers NationalBank.
Union National Bank.1
First &1 Citizens National
Bank.
Wayne National Bank.1
Commercial National Bank.33
NationalBank of New Bern.
First National Bank.3
SOUTH CAROLINA.
Charleston
Columbia
Greenville
Lake City
Orangeburg
Rock Hill
Spartanburg
Atlantic National Bank.1
Commercial National
Bank of
Charleston.3
Peoples National Bank.3
National1 Loan & Exchange
Bank.
First National Bank.1
Peoples National Bank.8
Farmers & Merchants
NationalBank.3
Edisto National Bank.11
National Union Bank. 3
Central National Bank.
VIRGINIA.
Abingdon
Alexandria
Appalachia
Chariottesville
Chase City
Chatham
Clifton Forge
Covington
Danville
Harrisonburg
Lexington
Martinsville
Newport News
Norfolk
Petersburg
Reedville
Richmond
Roanoke
First National Bank.1 3
Citizens National Bank.
First NationalBank.63
First National Bank.
National
Bank of Charlottesville.3
Peoples National Bank.1
The First National
Bank of
Chase City.1
First National Bank.4
Clifton Forge National Bank.3
First National Bank. 1
Citizens National Bank.3 3
Covington NationalBank.
First National Bank.1
First National Bank. 4
1
Rockbridge National Bank.
Peoples National Bank.s
First National Bank. *>
National Bank of Commerce.3
Seaboard NationalBank.4 1
Virginia National Bank.
Commonwealth N a t i o n a l
Bank. 4
3
American National Bank.
First NationalBank.1
Merchants National Bank.31
American National Bank. 1
National Exchange Bank.
260
ANNUAL EEPOKT FEDERAL RESERVE BOARD.
DISTRICT NO. 6—Continued.
DISTRICT NO. 5—Continued.
VIRGINIA—continued.
Rocky Mount
Peoples National Bank.3
South Boston
Planters & Merchants
National Bank.3
Boston National Bank.1 1
Staunton
Augusta National Bank.
National Valley Bank.1 1
Warrenton
Fauquier National Bank.
Winchester
Shenandoah
Valley National
Bank.3
WEST VIRGINIA.
LOUISIANA.
(See also District No. 11.)
Alexandria
First National Bank.2
Crowley
First National Bank of Acadia
Parish.™
Lake Charles
Calcasieu National Bank
of
Southwest Louisiana.21
New Orleans
The Whitney-Centra 1 National Bank of New Orleans.11
Opelousas
T h e 1Opelousas National
Bank.
(See also District No. 4.)
Clarksburg
Fairmont
Fairview
Graf ton
Huntington
Madison
Martinsburg
Parkersburg
Empire National Bank.3
Union National Bank.3
National Bank of Fairmont
.*
First National Bank.3
First Nationa 1 Bank.11
First National Bank.
The Huntington
National
Bank.1
3
Madison National Bank.
Old National Bank.1
Parkersburg National Bank.1
DISTRICT NO. 6.
ALABAMA.
Anniston
Athens
Bessemer
Birmingham
Cullman
Florence
Gadsden
Mobile
Montgomery
Oxford
Piedmont
Selma
Talladega
Tuscaloosa
11
Anniston National Bank.
Fir si National Bank.2
Firs t National Bank, e
First National
Bank in Bessemer.2
First National Bank.1 3
Leeth National Bank.2
First National Bank.
First NationaIBank.*2
First National Bank.
First National Bank.^
First National Bank of Oxford. 2
First National Bank.4
City National Bank.2
Talladega Nationa 1 Bank.3
City National Bank.2
First National Bank.2
FLORIDA.
Bartow
Polk County1 National Bank
of Bartow.
Bradentown
First National Bank.3
DeFuniak Springs... First National Bank.3 3
Jacksonville
Barnett National Bank.
Panama City
First National Bank.5
1
St. Augustine
St. Augustine National Bank.
4
St. Petersburg
Central National Bank.
3
First National Bank.2
Tampa
First National Bank.
West Palm Beach.. .First National Bank.1
MISSISSIPPI.
(See also District No. 8.)
Biloxi
Canton
Laurel
Meridian
TENNESSEE.
(See also District No. 8.).
Dickson
Fayetteville
Kingsport
Knoxville
McMinnville
Nashville
ILLINOIS.
(See also District No. 8.)
Aurora
Belvidere
Bushnell
Cambridge
Canton
Casey
Charleston
Chicago
Athens
Citizens National Bank.™
Elk National Bank.2211
First National Bank.
City National Bank.» 17
Peoples National Bank. 1
American National Bank. 3
Broadway NationalBank.
Cumberland
Valley National
Bank.3
Fourth 2 & First National
Bank.
Tennessee-Hermitage
National Bank.3
DISTRICT NO. 7.
GEORGIA.
Georgia National Bank.2 3
National Bank of Athens.
Atlanta
Atlanta National Bank.]2
Fourth National Bank.l
Fulton National Bank.
Lowry National Bank.3
Brunswick
NationalBank of Brunswick.1
Carrollton
First National
Bank of Carrollton.1
Dawson
Dawson National Bank.7 3
Fitzgerald
Exchange National Bank.
First National
Bank of Fitzgerald.36
LaGrange
LaGrange National Bank.2
Macon
Fourth National Bank.3
Qmtman
First National Bank.n
Winder
Winder National Bank.1
For footnotes see page 266.
First National Bank.3
First Nationa 1 Bank.3
The Commercial 1 National
Bank & Trust Co.
First NationalBank.1
First National Bank.2
Chillicothe
Danville
Decatur
Dixon
Elmhurst
El Paso
First National Bank.1
Old Second National Bank.*
Second National Bank.3
First National Bank.1
Fanners National Bank.1 1
Canton National Bank.
The First1 National Bank of
Canton.
First National Bank.3
National Trust Bank.1
Corn E x c h a n g e National
Bank.e
First National
Bank of Englewood.3
Calumet National
Bank of
Chicago.1
Live Stock Exchange
National
Bank of Chicago.1
National
Bank
of
the
Republic.1
National City Bank.11
First National Bank.1
First National Bank.
Second National
Bank of
Danville.2
Citizens National Bank.l3
Milliken National Bank. 3
National Bank of Decatur.
Dixon National Bank.1
First National
Bank of Elmhurst.1
Woodford
County National
1
Bank.
The First 1 National Bank of
El Paso.
261
FIDUCIARY POWERS GRANTED.
DISTRICT NO- 7—Continued.
DISTRICT NO. 7—Continued.
ILLINOIS—continued.
First National Bank.1
First National Bank.*
First N a t i o n a l Bank of
Henry .10
First National Bank.3
Joliet National Bank.i
City National Bank.3
First National Bank.i
LaSalle National Bank.3
Union National Bank.1
First National Bank.3
National Bank of Mattoon.4
State National Bank.i1
First National Bank.
First National Bank.4
1
NationalCity Bank of Ottawa.
Central National Bank.1
The Commercial2 National
Bank of Peoria.
Manufacturers
National
Bank.1
Rockford National Bank.3
The Swedish-American National Bank of Rockford.1
Third National Bank.2
The Waukegan
National
Bank.1
Freeport
Galesburg
Henry
Joliet
Kankakee
Kewanee
LaSalle
Macomb
Marseilles
Mattoon
Monticello
Moweaqua
Ottawa
Peoria
Rockford
Waukegan
INDIANA.
(See also District No. 8.)
Batesville
Brazil
Brookville
Cambridge City
Clay City
Crawfordsville
Dana
Dublin
Dyer
Edinburg
Elkhart
Fort Wayne
Franklin
Goshen
Greencastle
Hammond
Indianapolis
Kokomo
LaPorte
Liberty
Logansport
Lowell
Marion
Michigan City
Mishawaka
Monrovia
Muncie
New Carlisle
New Castle
Peru
Richmond
Rochester
Rockville
Rushville
For footnotes
First National Bank.3 1
Citizens National Bank.
"
First National Bank.3
Riddell National Bank.3
Franklin County National
Bank.3
National Brookville Bank.3
First National Bank.2
First National
Bank of Clay
City.1
Citizens National Bank.3
Elston National Bank.2
First National Bank.4
First Nationa 1 Bank. 3*
First Nationa 1 Bank. 3
Farmers National Bank.
First National Bank.1
The First & Hamilton Na-2
tional Bank of Fort Wayne.
Old National Bank.1
3
Franklin National Bank.
City National Bank.1
The First National
Bank
of
Greencastle.1
First National Bank.8
Fletcher-American
National
Bank.i1
Citizens National Bank.31
Howard National Bank.
First National Bank.3
Union 4 County National
Bank.
City National Bank.22
First National Bank.
State National Bank of Lowell.™
First National Bank.3
Marion National Bank.1 1
Merchants National Bank.
First National Bank.3
First National Bank.3
Delaware
County National
Bank.1
First National Bank.41
First National Bank.1
First National Bank.
First National Bank. 13
Second National Bank.
First National Bank.24
Rockville National Bank.3 3
Rush County National Bank.3
Rushville National Bank.
see page 266.
INDIAN A—continued.
Russiaville
Shelbyville
Sheridan
South Bend
Swayzee
Thorntown
Tipton
Wabash
Whiteland
Wilkinson
Winamac
First National Bank.4
The Farmers National
Bank:
of Shelbyville.1
2
Farmers National Bank.
3
First National Bank.3
First National Bank.
1
The First National Bank.
Home National Bank.4 3
Citizens National Bank.
Farmers & Merchants
National Bank.3
3
Whiteland National Bank.
4
Farmers National Bank.
First National Bank.2
IOWA.
Aurelia
Arlington
Bancroft
Boone
Burlington
Cedar Rapids
Charter Oak
Cherokee
Clarence
Clinton
Coon Rapids
Council Bluffs
Decorah
Des Moines
Dubuque
Elkader
Emmetsburg
E verly
Fairfield
Fonda
Fontanelle
Gladbrook
Greenfield
Grinnell
Hawarden
Humboldt
Independence
Indianola
Kanawha
Le Mars
Linn Grove
Manchester
Marengo
Marshalltown
Milford
Montezuma
Muscatine
Newell
New Sharon
Newton
Odebolt
Oskaloosa
Paullina
Perry
Peterson
Red Oak
Rippey
Rockwell City
Royal
Sibley
Sioux City
Sioux Rapids
Spencer
Stanton
The First 1 National Bank of
Aurelia.
American National Bank.4
First National
Bank of Bancroft.37
First National Bank.3
Merchants National Bank.1 L
Cedar Rapids National Bank.
3
Merchants National Bank.
First National Bank.22
1
First National Bank.3
First National Bank.
City National Bank.3
55
Merchants National Bank.
First National Bank.34
City National Bank. 1
First National Bank.
National Bank of Decorah.82
Des Moines National Bank.
First National Bank.11
First National Bank.
Emmetsburg National Bank.8
First National Bank.™
First National Bank.2
First National Bank.3
First National
Bank of Fontanelle.1
First National Bank.1 4
First National Bank. **
Merchants National
Bank of
Grinnell.i8
First National Bank."
3
First National Bank.
First National Bank.43
First National Bank.4
First National Bank.
First National Bank.41
First National Bank.3
First National Bank.3
First National Bank.4
First National Bank.
First National Bank.4
First National Bank.13
First National Bank.
First National Bank.11
First National Bank. "
Clark 1National Bank of Newton.
First National Bank.3
Oskaloosa National Bank.4
The First 11
National Bank of
Paul Una.
1
The Perry National Bank.
First National Bank.33
First National Bank.17
First National Bank.
Rockwell
City National
Bank.1
4
Citizens National Bank.
First National Bank.4
Continental National Bank.1**
Sioux National
Bank in Sioux
City.1
First"National Bank.4
First 1National Bank of Spencer.
First National Bank.3
262
ANNUAL REPORT FEDERAL RESERVE BOARD.
DISTRICT NO. 7—Continued.
DISTRICT NO. 8.
IOWA—continued.
1
Citizens National Bank.
First National Bank.3
Washington National Bank.3
Commercial National Bank.3
Leavitt 3& Johnson National
Bank.
First National Bank.3 3
Farmers National Bank.
First National Bank.1
Storm Lake
Story City
Washington
Waterloo
Waverly
Webster City
MICHIGAN.
(See also District No. 9.)
Battle Creek
Bay City
Benton Harbor
Birmingham
Boyne City
Detroit
Flint
Grand Rapids
Hillsdale
Jackson
Kalamazoo
Lansing
.Muskegon
Petoskey
Pontiac
Port Huron
Rochester
Saginaw
Traverse City
The City National Bank of
Battle Creek.2
3
Central National Bank.
Old National Bank.1 3
First National Bank.
Farmers & Merchants
National Bank.1
First National Bank.43
First National Bank.
2
National Bank of Commerce.
First National Bank.3
Grand Rapids National City
Bank.i
Old National Bank.**3
First National Bank. 1
National Union Bank. 1
Peoples National Bank.
First National
Bank of Kalamazoo.1
Capital National Bank.3
The City National Bank.«
Hackley National Bank."
Union National Bank.1
First National Bank.3
The National Bank of Pontiac.i
First National Exchange
Bank of Port Huron.3
First National Bank.3 2
Second National Bank.
First National Bank.4
WISCONSIN.
(See also District No. 9.)
Antigo
First National Bank of An
ti.go.2
Langlade National Bank.1 1''
Appleton
Citizens National Bank.
Beaver Dam
Old National Bank.3
Clintonville
First National Bank.2
Edgerton
First National
Bank of Edgerton.2
Fond du Lac
Commercial National Bank.1
First Fond du Lac National
Bank. 2
Hartford
First National Bank.11
Janesville
First National Bank.3
1
Manitowoc
National Bank of Manitowoc.
Marinette
First National Bank.1
Milwaukee
Marine National
Bank of Milwaukee.1
The National Exchange
Bank
1
of Milwaukee.
Monroe
First National Bank,3
Neenah
National
Manufacturers
Bank.1
Oshkosh
City National Bank.3
Racine
The Manufacturers'
National
Bank of Racine.1
Ripon
American National Bank.1
The First1 National Bank of
Ripon.
Shawano
The Wisconsin2 National Bank
of Shawano.
Viroqua
First National
Bank of Viroqua1
3
Waukesha
National Exchange Bank.
West Bend
First National Bank.1
For footnotes see page 266.
ARKANSAS.
Batesville
Eldorado
Fordyee
Fort Smith
Hot Springs
First National Bank."
Citizens National Bank.1
First National Bank.e
Merchants National Bank.i
1
Arkansas National Bank.
7
Citizens National Bank.
First National Bank.1
First National
Bank of Lake
Village.1
England National Bank.1 3
Lee County National Bank.
The First National Bank of
Mena.e
First National Bank.21
State National Bank.
Jonesboro
Lake Village
Little Rock
Mariana
Mena
Newport
Texarkana
ILLINOIS.
(See also District No. 7.)
Anna
Belleville
Cairo
Ed wards ville
Jacksonville
Marion
Metropolis
Mount Sterling
Murphysboro
Nashville
Nokomis
O'Fallon
Pittsfield
Quincy
Sparta
Vandalia
First National Bank.3
First National Bank.2
The St. Clair National
Bank
of Belleville.1
Cairo National Bank.1
Ed war dsville N a t i o n a l
Bank.is
Ayers National Bank.3
The First1 National Bank of
Marion.
City National Bank.33
First National Bank.2
First National Bank.
Farmers & Merchants
National Bank.1
First National Bank.1
Nokornis National Bank.*
First National Bank.i 1
First National Banks. 1
Ricker National Bank.
First National Bank.26
First National Bank.2
INDIANA.
(See also District No. 7.)
Bedford National Bank.7
City National Bank.3
Old State National Bank.i
First National Bank.27
First National Bank. 31
First National Bank.
First National Bank.3
New Albany National Bank 1
The National
Bank of Orleans.6
Farmers National Bank.18
Peoples 2 American National
Bank.
First National Bank.1 1
Seymour National Bank. 11
National Bank of Sullivan.
Citizens National Bank.3
Bedford
Evansville
Farmersburg
JefTersonville
Mitchell
Mt. Vernon
New Albany
Orleans...
Princeton
Seymour
Sullivan
Tell City
KENTUCKY.
(See also District No. 4.)
Bowling Green
Danville
Elizabethtown
Glasgow
Harrodsburg
Henderson
Hopkinsville
Lawrenceburg
Lebanon
Louisville
American National Bank.15
Citizens National Bank.12
Farmers National Bank.
1
First-Hardin National Bank.
Farmers National Bank.3
First National Bank.1
3
Henderson National Bank.
First National Bank.1 7
Anderson National Bank.
Lawrenceburg ( N a t i o n a l
Bank.2
Citizens National Bank.33
Marion National Bank.
Louisville National
Banking
Company.5
263
FIDUCIARY POWERS GRANTED.
DISTRICT NO. 9—Continued.
DISTRICT NO. 8—Continued.
KENTUCKY—continued.
Louisville
First National Bank of Louisville, i
National Bank of Kentucky.31
Morganfield
Morganfield National Bank. 4
Owensboro
United States National Bank.
Paducah
City National Bank.14
First National Bank.
MISSISSIPPI.
(See also District No. 6.)
Greenville
First National Bank.3
MISSOURI.
(See also District No. 10.)
First National Bank.2
First National Bank.*
Boone 3County N a t i o n a l
Bank.
Exchange National Bank.13
Hannibal
Hannibal National Bank.
Jefferson City
First National
Bank of Jefferson City.1
Kirksville
Citizens National Bank.2
Ridge way
First National Bank, i
St. Louis
Merchants-Laelede National
Bank, s
1
National Bank of Commerce.
State National Bank.31
First National Bank. 3
Sedalia
Citizens National Bank.
3
Springfield
Union National Bank.
Versailles
First National Bank.4
Carrollton
Chillicothe
Columbia
3
Merchants National Bank.
Montana National Bank.1 1
Yellowstone National Bank.
Commercial National Bank.a
3
Great Falls National Bank.
First National Bank.13
First National Bank. 1^
First National Bank.
Western2 Montana National
Bank.
Billings
Bozeman
Great Falls
Kalispell
Lewistown
Miles City
Missoula
NORTH DAKOTA.
First National Bank.3
1
Merchants National Bank.
First National Bank.41
First National Bank.
Union National Bank of Minot.w
Ellendale
Fargo
Forman
Grand Forks
Minot
SOUTH DAKOTA
8
Aberdeen National Bank.
.
First National Bank.x3
First National Bank. 3
First National Bank.
First National Bank.43
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.85
1
First National Bank.
First National Bank.4
Aberdeen
Arlington
Brookings
Colman
Flandreau
Lake Preston
Rapid City
Sioux Falls
Spearfish
Vermillion
Watertown
Webster
TENNESSEE.
WISCONSIN".
(See also District No. 6.)
Memphis
Central State National Bank.i
DISTRICT NO. 9.
MICHIGAN.
Manistique
Negaunee
First National Bank.2
First National Bank of Argyle.is
1
Austin
Austin National Bank.
First National Bank.21
Bremidji
First National Bank.
Chatfield
First National Bank.K
Crookston
Merchants National Bank.22
Duluth
American National Bank.
City National Bank.12
First National Bank.
Fergus Falls
Fergus Falls National4 Bank.2
Lanesboro
First National Bank.
Little Falls
First National
Bank of Little
Falls.33
Minneapolis
Metropolitan National Bank.i
Midland National Bank.2
Minneapolis National Bank.11
Northwestern National Bank/
1
Northfield
Northfield National Bank.
O watonna
First National Bank.1
National Farmers Bank.7
Red Wing
Goodhue1 County National
Bank.
St. Peter
First National Bank.21
Stillwater
First National Bank. 1
Waseca
Farmers National Bank.
Wells
First National Bank.i
Windom
First National
Bank of Windom.1
Winona
Winona National Bank.1
For footnotes see page 266.
45525°—21
18
Ashland National Bank.111
Northern National Bank.
First National Bank.4
First National Bank.™
United States1 National Bank
of Superior.
Ashland
Barron
Superior
(See also District No. 7.)
First National Bank.3
Negaunee National Bank.4
MINNESOTA.
Albert Lea
Argyle
(See also District No. 7.)
DISTRICT NO. 10.
COLORADO.
Akron
Boulder
Canon City
Center
Colorado Springs
Penver
Eagle
Englewood
Fort Collins
Fort Morgan
Grand Junction
Greeley
Gunnison
First 3National Bank of Akron.
Boulder National Bank.103
Citizens National Bank.
Freemont
County National
Bank.3
First National Bank.3
Colorado1 Springs National
Bank.
1
Exchange National Bank.
First National Bank.1 1
Colorado National Bank.1
Denver National Bank.
First National Bank.1
Hamilton National Bank.1
Stock Yards1 National Bank
of Denver.
United States National Bank/*
First National
Bank of Eagle
County.3
First National Bank.33
First National Bank.
Fort Collins National Bank.1
Poudre 11 Valley National
Bank.
First National Bank.3
Grand Valley National
Bank.1
First National Bank.1 1
Greeley National Bank.
Union National Bank.3
First National
Bank of Gunnison.1
264
ANNUAL REPORT FEDERAL RESERVE BOARD.
DISTRICT NO. 10—Continued.
DISTRICT NO. 10—Continued.
COLORADO—continued.
Hugo
Idaho Springs
Lamar
Las Animas
Longmont
Loveland
Montrose
Sterling
Telluride
Trinidad
Walsenburg
First National Bank.43
First National Bank.
1
The Lamar National Bank.
First National Bank.3 1
American National Bank.
First National Bank.1**
Loveland National Bank.10
Montrose National Bank.11
Farmers National Bank.
Logan 1 County National
Bank.
First National Bank.2
First National Bank. * 1
Trinidad National Bank.
First National Bank.1
NEBRASKA—continued.
Ord
Randolph
South Omaha
Utica
NEW MEXICO.
(SeealsoDistrictNo.il.)
Las Vegas
Raton
Santa Fe
Pittsburg
Sabetha
Salina
Topeka
Troy
Wichita
Winfield
First National
First National Bank.
Citizens National Bank.1
Commercial1National Bank &
Trust Co.
Citizens National Bank.113
Farmers National Bank.
First National Bank.3
First National Bank.3
Commercial National4Bank.1
First National Bank.
2
Lawrence National Bank.
First National Bank.4 3
Peoples National Bank.
First National
Bank in Pratt,
Kansas.1 1
National Bank of Commerce.
3
National Bank of Sabetha.
3
Farmers National Bank. 1
National Bank of America.
3
Farmers National Bank.
First National Bank.4
First 1National Bank in Wichita.
First National Bank.1
Ada
Enid
Hominy
MISSOURI.
Woodward
3
Bank.22
Fort Scott
Goodland
Horton
Hutchinson
Independence
Jewell City
Lawrence
Luray
Ottawa
Pratt
Lawton
McAlester
Muskogee
Oklahoma City
Pond Creek
Sallisaw
Shawnee
Tulsa
(See also District No. 8.)
Cameron
Carthage
Kansas City
King City
Maryville
Neosho
St. Joseph
First National Bank.4
Central National Bank.4
Commonwealth
National
Bank.11
Continental National
Bank oi'
Jackson County.1
Drovers National Bank.3
Fidelity National
Bank &
Trust Co.1
First National Bank.3
Interstate National Bank.1 1
New England National
Bank.
First National Bank.1
The First National
Bank
of
Maryville.25
First National Bank.1 3
American National Bank.
Burnes National Bank.3 2
Tootle-Lacy National Bank.
Cheyenne
Cody
Evanston
Kemmerer
Laramie
Powell
Rawlins
Rock Springs
First National Bank.4l
First National Bank.4
First National Bank.
The First National
Bank of
Emerson.2
Lyons
First National Bank.4
Nebraska City
The Nebraska
City National
Bank.1
4
Norfolk
Norfolk National Bank.
Omaha
First National Bank.3
Merchants National Bank.3
United States National Bank.
For footnotes see pag3 266.
Sheridan
Shoshoni
Thermopolis
First National Bank.1"
American National Bank.1
The National Bank1 of Commerce of Hominy.
City National Bank.18
First National Bank of Law
ton.i
American National Bank.e
First National
Bank of McAlester.2^
First National Bank.1 30
American National Bank.
Farmers National Bank.3
First National
Bank of Oklahoma City.1
Liberty National Bank.12
Security National Bank.
The Southwest National
Bank of Oklahoma City.1
Farmers National Bank.3
First 2National Bank in Sallisaw. 6
National Bank of Commerce.*
1
Shawnee National Bank.
Central National Bank.1 15
Exchange National Bank.
First National Bank.12
First National Bank.4
WYOMING.
Basin
Buffalo
Casper
NEBRASKA.
Butte
Columbus
Decatur
Emerson
First National
Bank of Las
Vegas.1
First National Bank.11
First National Bank.1
OKLAHOMA.
KANSAS.
Anthony
Coffeyville
Emporia
First National Bank.3
The First National
Bank of
Randolph.1
Stock Yards National
Bank.5
First National Bank.2®
First National Bank.10
First National Bank.*
Casper National Bank.3
National Bank
of Commerce
of Casper.10
Wyoming National Bank.13
American National Bank.
1
• Citizens National Bank.
First National Bank.1
Stock 1 Growers National
Bank.
15
Shoshone National Bank.
First National Bank.43
First National Bank.4
First National Bank.
First National Bank.2 3
Powell National Bank.
First National Bank. *
Rawlins National Bank.*
First National Bank. *
Rock Springs National1 Bank.1
First National Bank.
First National Bank.2
The First National
Bank of
Thermopolis.1
DISTRICT NO. 11.
Nogales
Tucson
First National Bank.2
Arizona National Bank.1
Consolidated National Bank.3
265
FIDUCIARY POWEKS GRANTED.
DISTRICT NO. 12—Continued.
DISTRICT NO. 11—Continued.
CALIFORNIA.
LOUISIANA.
(See also District No. 6.)
Shreveport
Commercial National Bank.
3
First National Bank.3
Bakersfield
Calexico
Chico
Fullerton
Los Angeles
NEW MEXICO.
(See also District No. 10.)
Albuquerque
State National Bank.3
The First National
Bank of
Albuquerque.11
Carlsbad
First National Bank.1 4
Roswell
Citizens National Bank.
First National Bank.4
Silver City
Silver City National Bank.31
'
Brownwood
Colorado
Corsicana
Dallas
Denison
El Paso
Fort Worth
Galveston
Granger
Greenville
Houston
McKinney
Marshall
Orange
Palestine
Port Arthur
San Angelo
San Antonio
Sealy
Sherman
Stanton
Texarkana
Troup
Tyler
Victoria
Waco
Waxahachie
Wichita Falls.
32
Citizens National Bank.
First National Bank.3
4
American National Bank.
First National Bank.43
First National Bank.
The First National
Bank of
Brenham.11
Citizens National Bank.*
City National Bank. 3
Corsicana National Bank.3
American
Exchange National
Bank.1
City National Bank. 1 1
Dallas National Bank.
3
National Bank of Commerce.
State National Bank.1x
City National Bank.
First National
Bank of El
Paso.1!
The State 1 National Bank of
El Paso.
Farmers & Mechanics
National Bank.35
First National Bank.12
Fort Worth National Bank.8 3
Stock Yards National Bank.
First National Bank. 3
First National Bank.32
Greenville
National Exchange
Bank.3
11
Nation al Bank of Commerce.
First National Bank.43
First National Bank.
Marshall National Bank.3
First National Bank.* 3
Royal National Bank.s
First Nation al Bank. 3
Central National Bank.
First National Bank.1
San Angelo National Bank.14
Lockwood National Bank.
National Bank of Commerce.1
Sealy National Bank.3
Commercial National Bank.1?
Merchants & 1 Planters National Bank.
First National Bank.4
Texarkana National Bank.1
First National Bank.e 4
Citizens National Bank.
Victoria National Bank.3
First Nation a 1 Bank.*
The Citizens National
Bank of
Waxahachie.1
City National Bank.11
First National Bank.
DISTRICT NO. 12.
ALASKA.
Fairbanks
First National Bank.
For footnotes see page 2G6.
Sacramento
San Francisco
TEXAS.
Abilene
Amarillo
Austin
Beaumont
Bonham
Brenham
Mountain View
Oakland
Orland
Pasadena
Pleasanton
Redwood City
1
Santa Barbara
Santa Paula
Visalia
Wilmington
First National Bank.51
First National Bank.
Butto County NationalBank.i
Farmers &5 Merchants National Bank.
Continental National Bank.5
Farmers &1Merchants National Bank.
First National Bank.5 1
Central National Bank.
First National Bank.5
National Bank & Trust
Co.1
First National Bank.5
First National
Bank
of
Mateo
County.30
Capital National Bank.1
National11Bank of D. O, Mills
& Co.
American National Bank.15
Bank of California, N.1 A.
First National Bank.
County National Bank &
Trust Co. of Santa Barbara.!
First National
Bank of Santa
Paula.1
First National Bank.55
First National Bank.
IDAHO.
Boise
Boise City National Bank.1
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.11
First National Bank.
ho.25
NEVADA.
Tonopah
Nevada First National Bank.5
OREGON.
Salem
First National Bank.1
First National Bank.33
First National Bank.
First National18Bank of Southern Oregon.
4
First National Bank.18
First National Bank.
First National
Bank of Coos
Bay.1
Medford National Bank.i
First National Bank.3
First National Bank.*?
3
American National Bank.
First National Bank.33
First National Bank.
1
United States National Bank.
Capital National Bank.1
Salt Lake City
Continental National Bank.3
Ashland
Corvallis
Eugene
Grants Pass
Harrisburg
Junction City
Marshfield. .1
Medford
Milton
Ontario
Pendleton
Portland
UTAH.
Deseret National Bank.s
WASHINGTON.
Bellingham
Clarkston.
Colfax
„
Ellensburg
Everett
Iloquiarn
Mount Vernon
Oroville
Pasco
Port Angeles
Pullman
Bellingham National Bank.s
First National Bank.ss
First National B ank. i
Farmers National Bank.3
Washington N ational1 Bank.*
First National Bank.
The First National
Bank of
Hoquiam. 1
First National Bank.41
First National Bank.
First National Bank of Pasco.1
The First National Bank.i
First National Bank.10
266
ANNUAL, REPORT FEDERAL RESERVE BOARD.
DISTRICT NO. 12—Continued.
DISTRICT NO. 12—Continued.
"WASHINGTON—continued.
Seattle
Spokane
-
Dexter
Horton
National
Bank.i
First National Bank.3
The Metropolitan National
Bank. 11
National Bank of Commerce.1
National City Bank.i
Seattle National Bank."
Union National Bank.1
Exchange National Bank.i
Fidelity National Bank.i
Old National
Bank of Spokane. 1
WASHINGTON—continued.
Tacoma
Toppenish
Vancouver
Walla Walla
Yakima
FirstNationalBank of Hawaii
at Honolulu.2
I
Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver
and committee of estates of lunatics.*
a 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,
s Registrar of stocks and bonds.
« Trustee.
i Trustee, executor, administrator, guardian of estates, assignee, receiver, and committee of estates of
lunatics.*
8
Trustee, executor, administrator, and guardian of estates.*
a Trustee, executor, administrator, guardian of estates, and receiver.*
io Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and
receiver.
II
Trustee,executor,administrator,registrar of stocks and bonds,guardian of estates,assignee,and receiver.*
1
2 Trustee, executor, and registrar of stocks and bonds.
13 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, and receiver.
i*
Trustee, executor, administrator, assignee, and receiver.*
15
Trustee and registrar of stocks and bonds.
16 Trustee, executor, administrator, registrar of stocks and bonds, assignee, and receiver.
IT Trustee, executor, administrator, guardian of estates, assignee, receiver, and committee of estates of
lunatics.
18
Trustee, executor, administrator, guardian of estates, assignee, and receiver.*
is Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, receiver, and committee of estates of lunatics .*
so Trustee, and registrar of stocks and bonds.*
si Trustee, executor, administrator, guardian of estates, assignee, receiver, and committee of estates of
lunatics.*
22
Trustee, executor, administrator, and guardian of estates.
33
Trustee, administrator, and registrar of stocks and bonds.
24 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, and receiver.*
as 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.
ss Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, and assignee.
29 Executor and administrator.
so
Trustee, executor, administrator, guardian of estates, receiver, and committee of estates of lunatics.*
81
Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and committee of estates of lunatics .*
32 Trustee and executor.
33 Trustee, executor, administrator, registrar of stocks and bonds, and guardian of estates.*
34 Trustee, executor, administrator, registrar of stocks and bonds.*
35 Executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and
committee of estates of lunatics.*
36 Trustee, executor, administrator, registrar of stocks and bonds, assignee, receiver.*
8
7
Executor,
administrator, guardian, assignee, and receiver.
38
Trustee, executor, administrator, guardian of estates, assignee, committee of estates of lunatics.*
Honolulu
National Bank of Tacoma.i
First National
Bank of Toppenish. 1
Vancouver National Bank.3 1
Baker Boyer National Bank.
First National Bank.i
Third National Bank.23 1
Yakima National Bank.
ANNUAL REPORT FEDERAL RESERVE BOARD.
267
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:
Connecticut:
Hartford
New Haven
Norwich
Maine:
Portland
Massachusetts:
Boston
Dedham
Fall River
Fitchburg
New Bedford
Springfield
Worcester
Rhode Island:
Providence
DISTRICT NO. 1.
Hartford Aetna National Bank.
Phoenix National Bank.
First National Bank.
Thames National Bank.
Canal National Bank.
Portland National Bank.
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:
Buffalo
New York
City National Bank.
First National Bank.
National Newark & Essex Banking Co.
National Bank of New Jersey.
Hamilton Trust Co.
Paterson National Bank.
Citizens Commercial Trust Co.
Manufacturers & Traders 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.
Columbia Trust Co.
Corn Exchange Bank.
Equitable Trust Co.
Farmers Loan & Trust Co.
268
ANNUAL REPORT FEDERAL RESERVE BOARD.
New York—Continued.
New York
Utica
Fifth Avenue Bank.
First National Bank.
Garfield National Bank.
Guaranty Trust Co.
Harriman National Bank.
Importers & Traders National Bank.
Irving National Bank.
Liberty National Bank.
Lincoln Trust Co.
Mechanics & Metals National Bank.
Mercantile Bank of the Americas.
Mercantile Trust & Deposit Co.
National Bank of Commerce.
National City Bank.
National Park Bank.
New Netherlands Bank.
Pacific Bank.
Seaboard National 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:
Greensburg
Pittsburgh
Phoenix & Third National Bank.
First-Second National Bank.
Fifth-Third National Bank.
Union Savings & Trust Co.
Central National Bank.
Cleveland Trust Co.
Guardian Savings & Trust Co.
Commerce Guardian Trust & Savings Bank.
First National 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.
Maryland :
Baltimore
5.
Baltimore Commercial Bank.
Baltimore Trust Co.
Drovers & Mechanics National Bank.
Citizens National Bank.
Farmers & Merchants National Bank.
Maryland Trust Co.
Merchants-Mechanics First National Bank.
ACCEPTANCES TO 100 PER CENT.
Maryland—Continued.
Baltimore
North Carolina:
Wilmington
South Carolina:
Charleston
Orangeburg
Rock Hill
Virginia:
Danville
Hampton
Norfolk
Richmond
National Bank of Baltimore.
National Bank of Commerce.
National Exchange Bank.
National Marine Bank.
National Union Bank of Maryland.
Second National Bank.
Western 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.
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
Pensaeola
Georgia:
Atlanta
Macon
Savannah
Valdosta
Louisiana:
Jennings
New Orleans
New Roads
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.
Fourth National Bank.
Macon National Bank.
Citizens Trust Co.
Citizens & Southern Bank.
Hibernia Bank.
Savannah Bank & Trust Co.
First National Bank.
Jennings National Bank.
Canal Commercial Trust & Savings Bank,
Hibernia Bank & Trust Co.
Interstate Trust & Banking Co.
Liberty Bank & Trust Co.
Marine Bank & Trust Co.
Whitney-Central National Bank.
The Pointe Coupee Trust & Savings Bank.
Merchants National Bank.
Hamilton National Bank.
First National Bank.
First National Bank.
269
270
ANNUAL REPORT FEDERAL RESERVE BOARD.
DISTRICT NO. 7.
Illinois*.
Chicago
Indiana:
Indianapolis
Michigan:
Detroit
Wisconsin:
Milwaukee
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.
National Bank of Commerce.
First National Bank.
DISTRICT NO. 8.
Mississippi:
Canton
Missouri:
St. Louis
Tennessee:
Memphis
First National Bank.
First National Bank.
Liberty Central National 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.
Minnesota:
Minneapolis
St. Paul
First & Security National Bank.
Northwestern National Bank.
Capital National Bank.
First National Bank.
DISTRICT NO. 10.
Colorado:
Denver
Kansas:
Hutchinson
Lawrence
Missouri:
Kansas City
St. Joseph
Oklahoma:
Oklahoma City
Denver National Bank.
First National Bank.
Lawrence National Bank.
Commerce Trust Co.
Continental National Bank.
Fidelity National Bank & Trust Co.
First National Bank.
National Bank of Commerce.
First National Bank.
Security National Bank.
DISTRICT NO. 11.
Arizona:
Nogales
Texas:
Austin
Brown wood
First National Bank.
American National Bank.
Brownwood National Bank.
ACCEPTANCES TO 100 PER CENT.
Texas—Continued.
Dallas
El Paso
Fort Worth
Gainesville
Hillsboro
Honey Grove
Houston
Nayasota
Paris
San Angelo
Sherman
Terrell
Waco
Waxahachie
American Exchange National Bank.
City National Bank.
Dallas National Bank.
First National Bank.
Farmers & Mechanics 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.
Commercial National Bank.
First National Bank.
American National Bank.
First National Bank.
Waxahachie National Bank.
DISTRICT NO. 12.
California:
Los Angeles
San Francisco
Santa Barbara
Oregon:
Portland
Washington:
Seattle
Spokane
Tacoma
First National Bank.
Merchants National Bank.
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.
First National Bank.
Ladd & Tilton Bank.
Northwestern National Bank.
United States National Bank.
Dexter Horton National Bank.
First National Bank.
National Bank of Commerce of Seattle.
Seaboard National Bank.
Seattle National Bank.
Union National Bank.
Spokane & Eastern Trust Co.
Old National Bank.
Exchange National Bank.
National Bank of Tacoma
271
272
ANNUAL REPORT FEDERAL RESERVE BOARD.
PERSONNEL AND SALARIES.
Salaries of officers and employees of Federal Reserve Banks as of Dec. 31, 1920.
FEDERAL RESERVE BANK OF BOSTON.
Departments.
Num ner of
officers and
employees
1919
Chairman and Federal Reserve agent.
G overnor
Deputy governor
Other officers
Banking department
Bookkeeping department
Transit department
Federal Reserve agent's department..
Auditing department
Fiscal agency department
General
Total.
1
1
2
8
223
32
187
14
Salaries.
1920
$15,000
25,000
24,000
38,500
265.200
33,240
188,240
21,780
262
25
1
1
2
9
241
40
214
22
18
179
49
347,980
23,460
$18,000
25,000
27,000
50,500
299,600
50,000
248,240
46,180
34,200
227,100
64,500
755
776
982,400
1,090,320
F E D E R A L R E S E R V E B A N K O F N E W Y O R K (INCLUDING B U F F A L O
Chairman and Federal Reserve agent.
Governor
Deputy governor
Other officers
Banking department
Bookkeeping department
Transit department
Federal Reserve agent's d e p a r t m e n t . .
Auditing department
Fiscal agency department
General
Total
1920
1919
1
1
2
27
1,297
79
614
30
1
1
4
30
741
170
1,075
126
522
75
109
461
532
2,962
2,936
BRANCH).
$30,000
50,000
51,000
195,700
1,608,220
101,766
580,700
54,804
989,656
200,118
$30,000
25,000
95,000
255,900
1,609,610
202,320
590,700
157,620
210,650
723,680
738,793
3,861,964
4,639,273
FEDERAL RESERVE BANK OF PHILADELPHIA.
Chairman and Federal Reserve agent.
Governor
Deputy governor
Comptroller
Other officers
Banking department
Bookkeeping department
Transit department
Federal Reserve agent's department..
Auditing department
Fiscal agency department
General
9
134
26
186
11
63
216
1
1
1
1
6
126
25
211
22
26
105
316
Total.
$15,000
25,000
76,640
237,440
$15,000
25,000
15,000
6,000
51,000
176,420
34,520
244,240
47,900
48,190
132,950
361,868
812,374
1,158,083
51,500
173,060
29, 700
176,904
27,130
FEDERAL RESERVE BANK OF CLEVELAND (INCLUDING PITTSBURGH AND
CINCINNATI BRANCHES).
Chairman and Federal Reserve agent.
Governor
Other officers
Banking department
Bookkeeping department
Transit department
Federal Reserve agent's department...
Auditing department.
Fiscal agency department
General
Total..
1
1
13
175
38
211
17
105
65
1
1
18
262
50
353
22
30
141
91
$20,000
25,000
65,199
232, 819
41, 580
179, 620
32,480
184, 589
66, 045
$23,250
30,000
101,500
404,268
74, 772
386,532
43,992
60,872
200,156
120,447
847, 332
1,445,789
273
PERSONNEL AND SALARIES.
Salaries of officers and employees of Federal Reserve Banks as of Dec. SI, 1920—Oontd.
F E D E R A L RESERVE BANK OF RICHMOND (INCLUDING BALTIMORE BRANCH).
Number of
officers and
employees.
Departments.
1919
Chairman and Federal Reserve agent
Governor
.
Other officers
Banking department
Bookkeeping department
Transit department
Federal Reserve agent's department
Auditing department
Fiscal agency department
General.
. . . . .
Total
. .
1
1
11
82
13
157
9
.
.
1920
Salaries.
1919
1920
$12,000
18,000
50,800
93, 410
14, 540
125, 228
19,900
54
73
1
1
16
146
30
276
15
24
71
87
63,330
83 560
$15,000
18, 000
93, 250
185, 900
37,410
266, 848
38, 860
46,050
85, 726
110,932
401
667
480,768
897,976
FEDERAL RESERVE BANK OF ATLANTA (INCLUDING BIRMINGHAM, JACKSONVILLE,
NASHVILLE, AND NEW ORLEANS BRANCHES AND SAVANNAH AGENCY).
Chairman and Federal Reserve agent..
Governor
Other officers
Banking department
Bookkeeping department
Transit department
Federal Reserve agent's department...
Auditing department
Fiscal agency department
General
Total..
1
1
18
98
32
109
10
386
1
1
21
112
44
104
17
22
60
$10,000
15,000
76, 600
113,850
33, 000
98,400
21,250
82,980
36,288
$12,000
18,000
94, 800
125,568
45, 600
106, 010
30,277
34,080
79,820
64,568
446
487,368
610,723
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..
Auditing department
Fiscal agency department
General
Total
1
1
25
274
31
299
17
27
277
247
1
1
34
370
40
458
37
32
300
458
1,199
$18,000
30,000
132,000
352,782
38,580
207,236
33,460
34,900
365,538
274,091
$24,000
35,000
167,950
561,180
54,620
510,460
72,560
48, 080
432,200
541,400
1,586,587
2,447,450
FEDERAL RESERVE BANK OF ST. LOUIS (INCLUDING LOUISVILLE, MEMPHIS AND
LITTLE ROCK BRANCHES).
Chairman and Federal Reserve agent..
Governor
Other officers
Banking department
Bookkeeping department
Transit department
Federal Reserve agent's department...
Auditing department
Fiscal agency department
General
Total..
1
1
14
225
23
114
104
51
541
1
1
19
284
54
265
9
30
136
52
$15,000
20,000
66,300
261,850
25,650
72,350
10,950
156,700
24,100
$16,000
20,000
100,200
423,270
67,420
227,230
19,980
48,560
163,380
53,380
652,900
1,139,420
274
ANNUAL REPORT FEDERAL RESERVE BOARD.
Salaries of officers and employees of Federal Reserve Banks as of Dec. SI,
1920—Oontd.
FEDERAL RESERVE BANK OF MINNEAPOLIS.
Departments.
Number of
officers and
employees.
1919
Chairman and Federal Reserve agent.
Governor
Deputy governor
Other officers
Banking department
Bookkeeping department
Transit department
Federal Reserve agent's department...
Auditing department
Fiscal agency department
13
101
14
64
Total..
Salaries.
1920
1
1
2
6
128
13
192
18
11
87
$12,000
12,000
72,360
$15,000
16,000
17,500
23,900
166,880
18,600
202,836
40,320
16,020
121,816
459
347,360
638,872
17,900
104,380
14,560
85,860
28,300.
F E D E R A L RESERVE BANK OF KANSAS CITY (INCLUDING DENVER, OMAHA, AND
OKLAHOMA CITY BRANCHES).
Chairman and Federal Reserve agent..
Governor
Other officers
Bookkeeping department
Transit department
Federal Reserve agent's department...
Auditing department
Fiscal agency department
General
Total..
FEDERAL
RESERVE
BANK
194,890
239,060
$15,000
20,000
78,473
44,321
330,153
28,140
46,442
277,140
290,318
583
863
770,470
1,129,987
OF DALLAS (INCLUDING E L PASO AND HOUSTON
BRANCHES).
Chairman and Federal Reserve agent.
Governor
Other officers
Banking department.
Bookkeeping department
Transit department
Federal Reserve agent's department...
Auditing department
Fiscal agency department
General
Total..
$12,000
18,000
64,400
26,860
206.160
9,100
io7
186
1
1
20
33
315
13
33
206
241
1
1
15
18
199
6
$14,000
15,000
62, 800
202,460
24,780
178,000
25,260
89
22
1
1
17
120
32
189
20
36
78
119
118,260
21,000
$18,000
18,000
76,000
151,018
36,370
226,973
50,342
45,908
120,475
123,704
505
613
661,560
866,790
1
1
15
165
23
173
16
F E D E R A L RESERVE BANK OF SAN FRANCISCO (INCLUDING SPOKANE, PORTLAND,
SEATTLE, SALT LAKE CITY, AND LOS ANGELES BRANCHES).
Chairman and Federal Reserve agent
Governor
„
Other officers
Banking department.
Bookkeeping department
Transit department
Federal Reserve agent's department..
Auditing department
Fiscal agency department
General
Total
1
1
23
176
33
100
18
33
129
53
567
1
1
29
429
54
250
23
53
183
]09
$18,000
18, 000
108,000
237, 380
40, 740
108, 720
43, 460
49, 900
128, 340
79, 000
$24,000
24,000
125,020
581,592
71,340
305,760
59,780
88,380
245,280
152,100
1,132
831,540
1,677,252
PERSONNEL A^D SALARIES.
275
SALARIES OF OFFICERS AND EMPLOYEES OF THE FEDERAL RESERVE
BOARD AS OF DEC. 31, 1920.
OFFICE OF THE SECRETARY.
W. W. Hoxton, secretary
W. L. Eddy, assistant secretary
Staff:
1 at $1,800
$10, 000. 00
4, 200. 00
1, 800. 00
$l 6 j 000. 00
OFFICE OF THE ASSISTANT TO GOVERNOR.
R. G. Emerson, assistant to governor
Staff:
1 at $4,000
1 at $3,600
1 at $2,930
1 at $2,800
1 at $2,565
1 at $2,330
1 at $2,200
1 at $2,040
1 at $2,080
1 at $2,000
4 at $1,905
6 at $1,730
6 at $1,500
1 at $1,465
1 at $1,440
1 at $1,260
1 at $1,200
2 at $720
1 at $360 (part-time employee)
1 at $120 (part-time employee)
6, 500. 00
4, 000. 00
3, 600. 00
2, 930. 00
2, 800. 00
2, 565. 00
2, 330, 00
2. 200. 00
2, 040. 00
2, 080. 00
2, 000. 00
7, 620. 00
10, 380. 00
9, 000. 00
1, 465. 00
1,440. 00
1, 260. 00
1, 200. 00
1, 440. 00
360. 00
120. 00
67,330.00
OFFICE OF GENERAL COUNSEL.
W. S. Logan, general counsel
W. B. Angell, assistant counsel
Walter Wyatt, assistant counsel
Staff:
1 at $2,750
1 at $2,500
1 at $2,400
1 at $1,920
1 at $1,800
10,000. 00
6, 000. 00
4, 800. 00
2,750.00
2, 500. 00
2,400. 00
1, 920. 00
1, 800. 00
32,170.00
FISCAL AGENT.
W. M. Imlay
Staff:
1 at $1,540
4,200.00
1, 540. 00
5, 740. 00
ARCHITECTS.
A. B. Trowbridge, consulting architect
O. W. Ten Eyek, assistant architect
6, 666. 66
4,000. 00
10,666. 66
276
ANNUAL REPORT FEDERAL RESERVE BOARD.
OFFICES OF MEMBERS OF THE BOARD.
Staff:
1 at $2,740
2 at $2,500
1 at $2,400
1 at $2,250
1 at $2,000
1 at $1,800
1 at $1,680
$2, 740. 00
5, 000. 00
2, 400. 00
2, 250. 00
2,000. 00
], 800. 00
1, 680. 00
$17, 870. 00
DIVISION OF REPORTS AND STATISTICS.
E. L. Smead, chief of division
Staff:
1 at $3,300
1 at $2,800
1 at $2,665
1 at $2,400
1 at $2,240
7 at $1,905
1 at $1,760
2 at $1,665
3 at $1,600
4 at $1,560
1 at $1,465
4 at $1,440
1 at $1,400
1 at $1,340
1 at $1,320
5 at $1,200
1 at $1,165
1 at $1,160
2 at $1,080
4, 800. 00
3, 300. 00
2, 800. 00
2, 665. 00
2, 400. 00
2, 240. 00
13, 335. 00
1, 760. 00
3, 330. 00
4, 800. 00
6, 240. 00
1, 465. 00
5, 760. 00
1, 400. 00
1, 340. 00
1, 320. 00
6, 000. 00
1,165. 00
1,160. 00
2,160. 00
69,440.00
STATISTICIAN.
Morris Jacobson, statistician
E. A. Goldenweiser, assistant statistician
Staff:
1 at $2,400
2 at $1,800
1 at $1,730
1 at $1,680
1 at $1,560.
1 at $920
7, 500. 00
4, 200. 00
2,400. 00
3, 600. 00
1, 730. 00
1, 680. 00
1, 560. 00
920. 00
23,590.00
DIVISION OF EXAMINATION.
James F. Herson, chief of division and chief Federal Reserve
examiner
Examiners:
W. J. Donald
James Buchanan, jr
G. A. Augherton
R. M. Chapman
Assistant examiners:
1 at $3,800
2 at $3,600
1 at $3,300
5 at $3,000
4 at $2,700
1 at $2.200
9, 000. 00
5, 500. 00
5, 000. 00
4,000. 00
3, 600. 00
27,100.00
3, 800. 00
7, 200. 00
3,300. 00
15, 000. 00
10, 800. 00
2, 200. 00
42,300.00
PERSONNEL AND SALARIES.
277
Office staff:
1 at $1,730
1 at $1,500
1 at $1,465
1 at $1.080
$1, 730. 00
1, 500. 00
1, 465. 00
1, 080. 00
$5,775.00
75, 175. 00
DIVISION OF ANALYSIS AND RESEARCH.
IL Parker Willis, director,
W. H. Steiner, assistant director
Staff:
3 at $3,000
1 at $2,750
1 at $2,500
1 at $2,400
1 at $2,100
1 at $1.800
1 at $1,680
1 at $1,600
4 at $1,560
3 at $1,500
2 at $1,440
2 at $1,200
6, 000. 00
4, 000. 00
9, 000. 00
2, 750. 00
2, 500. 00
2, 400. 00
2,100. 00
1, 800. 00
1, 680. 00
1, 600. 00
6, 240. 00
4, 500. 00
2, 880. 00
2, 400. 00
49,850.00
DIVISION OF FEDERAL RESERVE ISSUE AND REDEMPTION.
Willard E. Buell. chief of division
Staff:
1 at $2,500
1 at $2,040
1 at $1,880
1 at $1,740
1 at $1,620
8 at $1,500
15 at $1,400
3 at $1,380
9 at $1,320
3 at $1.260
8 at $1,200
1 at $360
3, 500. 00
2, 500. 00
2, 040. 00
1, 880. 00
1, 740. 00
1, 620. 00
12, 000. 00
21, 000. 00
4,140. 00
11, 880. 00
3, 780. 00
9, 600. 00
360. 00
__
7 6? 040. 00
RAILWAY LOAN ADVISORY COMMITTEE.
S. M. Stellwagen, secretary
Staff:
1 at $1,800
1 at $1.640
6, 000. 00
1, 800. 00
1, 640. 00
9 440. 00
EMPLOYEES DETAILED.
Detailed to National Bank Redemption Division, office of
the Comptroller of the Currency :
32 at $1,040 (currency counters)
33, 280. 00
2 at $1,020 (laborers)
2, 040. 00
35.320.00
278
ANNUAL REPORT FEDERAL RESERVE BOARD.
MESSENGERS.
2 at $1,340
1 at $1,200
7 at $1,160
$2, 680. 00
1, 200. 00
8,120. 00
$12, 000. 00
CHARWOMEN.
3 at $240
720. 00
Total
501, 351. 66
SALARIES OF NATIONAL BANK EXAMINERS AS OF DEC. 31, 1929.
Henry B. Davenport, assigned as Chief, Examining Division, Comptroller's
Office
$3, 500
SUPERVISING EXAMINERS.
Districts Nos. 1 and 2—E. Willey Stearns
Districts Nos. 3 and 4—Oliver W. Birckhead
Districts Nos. 5 and 6—R. Gordon Finney
Districts Nos. 7 and 9—J. L. Kennedy
Districts Nos. 8 and 10—E. H. Gough
District No. 11—David Murphy
District No. 12—Harry L. Machen
$5,500
4, 200
6, 000
5, 000
5, 500
5, 000
6, 500
—
•
37,700
DISTRICT NO. 1—BOSTON.
(400 national member banks.)
Daniel C. Mulloney, chief examiner
10, 000
1 examiner, at $5,000; 3 examiners, at $4,200; 1 examiner, at $3,900;
1 examiner, at $3,000; 1 examiner, at $2-,400
26, 900
36,900
DISTRICT NO. 2—NEW YORK.
(651 national member banks.)
Sherrill Smith, chief examiner
16,000
2 examiners, at $6,000; 2 examiners, at $3,900; 2 examiners, at
$3,600; 1 examiner, at $3,300; 2 examiners, at $3,000; 2 examiners, at $2,700; 2 examiners, at $2,400
46, 500
62? 500
DISTRICT NO. 3—PHILADELPHIA.
(653 national member banks.)
Stephen L. Newnham, chief examiner
10,000
1 examiner, at $5,000; 1 examiner, at $4,500; 1 examiner, at $4,000;
1 examiner, at $3,900; 1 examiner, at $3,600; 3 examiners, at
$3,300; 1 examiner, at $3,000; 1 examiner, at $2,700
36, 600
46,600
DISTRICT NO. 4—CLEVELAND.
(765 national member banks.)
William J. Schechter, chief examiner
7, 500
1 examiner, at $5,000; 2 examiners, at $4,800; 2 examiners, at $4,500;
2 examiners, at $3,900; 1 examiner, at $3,300; 3 examiners, at
$3,000; 1 examiner at $2,700; 1 examiner at $2,400
48, 800
56, 300
PERSONNEL AND SALARIES.
279
DISTRICT NO. 5—RICHMOND.
(555 national member banks.)
J. K. Doughton, chief examiner
$8, 500
1 examiner, at $6,500; 1 examiner, at $4,500; 1 examiner, at $3,900;
4 examiners, at $3,600; 1 examiner, at $3,300; 2 examiners, at
$3,000; 2 examiners, at $2,400
43, 400
, $51,900
DISTRICT NO. 6—ATLANTA.
(376 national member banks.)
J. William Pole, chief examiner
7, 500
1 examiner, at $5,000; 2 examiners, at$4,500; 1 examiner, at $4,200;
1 examiner, at $3,900; 2 examiners, at $3,300; 2 examiners, at
$3,000
34, 700
42,200
DISTRICT NO. 7—CHICAGO.
(1,065 national member banks.)
Silas H. L. Cooper, chief examiner
12,000
1 examiner, at $5,000; 7 examiners, at $4,200; 2 examiners, at $3,300;
2 examiners, at $2,700; 3 examiners, at $2,400
53, 600
65,600
DISTRICT NO. 8—ST. LOUIS.
(481 national member banks.)
John S. Wood, chief examiner
2 examiners, at $5, 000; 1 examiner, at $3,900; 1 examiner, at $3,600;
1 examiner, at$3,000; 1 examiner, at$2,700; 3 examiners, at$2,400
7,000
30,400
37,400
DISTRICT NO. 9—MINNEAPOLIS.
(885 national member banks.)
Fred Brown, chief examiner
8,500
1 examiner, at $5,000; 1 examiner, at $4,800; 1 examiner,at $4,200;
1 examiner, at $4,000; 1 examiner, at $3,500; 2 examiners, at
$3,300; 1 examiner, at $3,000; 2 examiners, at $2,700; 2 examiners, at $2,400
41,400
49,900
DISTRICT NO. 10—KANSAS CITY.
•(1,032 national member banks.)
Luther K. Roberts, chief examiner
7, 000
1 examiner, at $5,000; 1 examiner, at $4,800; 2 examiners, at $4,500;
1 examiner at $3,900; 3 examiners, at $3,300; 2 examiners, at
$3,000; 2 examiners, at $2,700; 1 examiner, at $2,400
46,400
—
53,400
DISTRICT NO. 11—DALLAS.
(663 national member banks.)
Richard H. Collier, chief examiner
8, 500
3 examiners at $4,000; 2 examiners at $3,900; 1 examiner at $3,000;
2 examiners at $2,400
27,600
—
—
45525°—21
19
36,100
280
ANNUAL REPORT FEDERAL RESERVE BOARD.
DISTRICT NO. 12;—SAN FRANCISCO.
(647 national member banks.1)
Horace R. Gaither, chief examiner
$9, 000
1 examiner at $6,000; 1 examiner at $5,100; 1 examiner at $4,500;
3 examiners at $4,200; 2 examiners at $3,900; 1 examiner at $3,600;
2 examiners at $3,300; 1 examiner at $2,700
48, 900
—
— $57,900
Grand total of annual salaries of all examiners on Dec. 31,
1920
637,900
RECAPITULATION.
Examining staff:
Chief examiners and supervising examiners—
At $16,000 per annum
At $12,000 per annum
At $10,000 per annum
At $9,000 per annum.
At $8,500 per annum
At $7,500 per annum
At $7,000 per annum
At $6,500 per annum
At $6,000 per annum
At $5,500 per annum
At $5,000 per annum
At $4,200 per annum
Total chief examiners (12) and supervising examiners (7)
Salaries, chief examiners and supervising examiners
Other examiners:
At $6,500 per annum
At $6,000 per annum
At $5,100 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 $3,500 per annum
At $3,300 per annum
At $3,000 per annum
At $2,700 per annum
At $2,400 per annum
Total other examiners
Salaries, other examiners
Total examining staff
Total salaries
1
1
2
1
3
2
2
1
1
2
2
1
19
149, 200
1
3
1
9
4
9
15
5
14
10
1
17
16
12
17
134
488, 700
153
637, 900
i Includes the 2 national nonmember banks in the Hawaiian Territory and the 2 national nonmember and 1 national member banks in Alaska.
281
DIRECTORY.
DIRECTORY OF THE FEDERAL RESERVE BOARD AND FEDERAL RESERVE BANKS.
FEDERAL RESERVE BOARD.
W. P. G. HARDING, Governor.
EDMUND PLATT, Vice Governor.
EX OFFICIO MEMBERS.
DAVID F. HOUSTON,
Secretary of the Treasury, Chairman.
JOHN SKELTON WILLIAMS,
Comptroller of the Currency.
ADOLPH C. MILLER.
CHARLES S. HAMLIN.
D. C. WILLS.
W. W. HOXTON, Secretary.
WALTER S. LOGAN, General Counsel.
W. L. EDDY, Assistant Secretary.
W. M. IMLAY, Fiscal Agent.
II. PARKER WILLIS,
R. (3r. EMERSON, Assistant to Governor.
Director, Division of Analysis and
F jearch,
Chief, Division of Examination and
Chief Federal Reserve Examiner. M. JAC* ON, Statistician.
E. L. Si AD,
CRANE,
Chief, Division of Reports and StaActing Director, Division of Foreign
tistics.
Exchange.
J. F. HERSON,
J. E.
OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS.1
DISTRICT NO 1.—FEDERAL RESERVE BANK OF BOSTON.
Frederic H. Curtiss, chairman and Federal Reserve agent. Allen Hollis, deputy chairman. Chas. A.
Morss, governor.
Residence.
Director.
Class A:
Edward S. Kennard
F. S. Chamberlain
Thomas P . Beal
Class B:
Chas. G. Washburn
Edmund R. Morse
Philip R. Allen
Class C:
Allen Hollis
Jesse H. Metcalf
Frederic H. Curtiss
1
Term expires.
Rumford, Me
New Britain, Conn
Boston, Mass
Dec. 31,1921
Dec. 31,1922
Dec. 31,1923
Worcester, Mass
Proctor, Vt
East Walpole, Mass
Dec. 31,1921
Dec. 31,1922
Dec. 31,1923
Concord, N. II
Providence, R . I
Boston, Mass
Dec. 31,1921
Dec. 31,1922
Dec. 31,1923
Includes directors elected in December, 1920, for the 3-year term beginning Jan. 1,1921.
DISTRICT NO. 2—FEDERAL RESERVE BANK OF NEW YORK.
Pierre Jay, chairman and Federal Reserve agent. George Foster Peabody, deputy chairman. Benjamin
Strong, governor.
Class A:
Charles Smith
James S. Alexander
R. H. Treman
Class B:
L. R. Palmer
Charles A. Stone
Richard H. Williams...
Class C:
George Foster Peabody.
Pierre Jay
W. L. Saunders
Oneonta, N. Y
I New York, N. Y
Ithaca, N. Y .
Dec. 31.1921
Dec. 31.1922
Dec. 31.1923
Croton-on-Hudson, N. Y
New York, N. Y
Madison, N. J
Dec. 31,1921
Dec. 31.1922
Dec. 31.1923
Lake George, N. Y
New York, N. Y
do
Dec. 31,1921
Dec. 31.1922
Dec. 31.1923
282
ANNUAL REPORT FEDERAL RESERVE BOARD.
OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS—Continued.
DISTRICT NO. 2—FEDERAL RESERVE BANK OF NEW YORK—Continued.
BUFFALO BRANCH OF T H E F E D E R A L RESERVE BANK OF NEW YORK.
R. M. Gidney, manager.
Director.
Residence.
Frank L. Bartlett.
Clifford Hubbell
E. J. Barcalo
Elliott C. McDougal...
Harry T. Ramsdell
Thomas E. Lannin
Clean, N. Y
Buffalo, N. Y
....do
do. .
.do
Rochester, N. Y
Term expires.
Dec. 31,1921
Do.
Do.
Do
Do.
Do.
DISTRICT NO. 3—FEDERAL RESERVE BANK OF PHILADELPHIA.
Richard L. Austin, chairman and Federal Reserve agent. H. B. Thompson, deputy chairman. George
' ; W. Norris, governor.
Class A:
Francis Douglas
M. J. Murphy
Joseph Wayne, jr
Class B:
Chas. K. Haddon
Alba B . Johnson
Edwin S. Stuart
Class C:
Charles C. Harrison
H. B. Thompson
Richard L. Austin
nf)
..
i.
.^ Wilkes-Barre, Pa..
,.. Clarks Green, Pa...
•.-;. Philadelphia, Pa.
Dec. 31.1921
Dec. 31.1922
Dec. 31,1923
Camden, N. J
Philadelphia, Pa
do
Dec. 31,1921
Dec. 31.1922
Dec. 31.1923
Philadelphia, Pa.
Wilmington, Del..
Philadelphia, Pa..
Dec. 31,1921
Dec. 31,1922
Dec. 31,1923
DISTRICT NO. 4—FEDERAL RESERVE BANK OF CLEVELAND.
Lewis B. Williams, deputy chairman and acting Federal Reserve agent. E . R. Fancher, governor.
Class A:
O.N.Sams
Chess Lamberton
Robert Wardrop
Class B:
John Stambaugh
R. P. Wright
T. A. Combs
Class C:
H.P.Wolfe
Lewis B . Williams
;
Hillsboro, Ohio
Franklin, Pa
Pittsburgh, Pa
Dec. 31.1921
Dec. 31.1922
Dec. 31.1923
Youngstown, Ohio.
Erie, Pa.
Lexington, Ky.
Dec. 31.1921
Dec. 31.1922
Dec. 31.1923
Columbus, Ohio.
Cleveland, Ohio..
Dec. 31.1921
Dec. 31.1922
PITTSBURGH BRANCH OF THE FEDERAL RESERVE BANK OF CLEVELAND.
Geo. DeCamp, manager.
Chas. W. Brown.
James D. Gallery.
Harrison Nesbit..
R. B. Mellon
Geo. DeCamp
Pittsburgh, Pa..
.do.
..do.
..do.
..do.
Dec. 31,1921
Do.
Do.
Do.
Do.
CINCINNATI BRANCH OF THE FEDERAL RESERVE BANK OF CLEVELAND.
L. W. Manning, manager.
Judson Harmon
Charles A. Hinscli
L. W. Manning
W. S. Rowe
George D. Crabbs
|
i
I
Cincinnati, Ohio.
do.
do..
do.
do.
Dec. 31,1921
Do.
Do.
Do.
Do.
283
DIRECTORY.
OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANES—Continued.
DISTRICT NO. 5—FEDERAL RESERVE BANK OF RICHMOND.
Oaldwell Hardy, chairman and Federal Reserve agent. James A. Moncure, deputy chairman. George J.
Seay, governor.
Residence.
Director.
Class A:
Chas. E. Riernan
J. F.Bruton
L. E. Johnson
Class B :
Edmund
dund Strudwick
dc
JJames F.
F Oyster
Oy
t
D R.
R Coker
C k H a
D.
Class C:
Howard Bruce
James A. Moncur
Caldwell Hardy
r
W
t
s
h
v
Baltimore, Md.
Wilson,, N.C.
| Alderson,
Ald
W Va
W.
I
j Richmond,, Va
i i Washington,
t
D
D. C
i l l e , S. C
Baltimore, Md
Richmond, Va
do
Term expires.
Dec. 31.1921
Dec. 31.1922
Dec. 31.1923
Dec. 31.1921
Dec. 31.1922
Dec. 31.1923
Dec. 31,1921
Dec. 31,1922
Dec. 31,1923
BALTIMORE BRANCH OF THE FEDERAL RESERVE BANK OF RICHMOND.
M. M. Prentis, manager.
Baltimore, Md.
.do
.do.
.do.
..do.
M. M. Prentis
Chas. C. Homer, j r
William Ingle
Waldo Newcomer
H. B. Wilcox
Dec. 31,1921
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:
JohnK. Ottley..
Oscar Newton...
P. R. Kittles....
Class B:
J. A. McCrary...
W. H. Hartford.
LeonC. Simon..
Class C:
Edw. T. Brown.
W . H . Kettig...
Jos. A. McCord..
Atlanta, Ga...
Jackson, Miss.
Sylvania, Ga..
Dec. 31.1921
Dec. 31.1922
Dec. 31.1923
Decatur, Ga
Nashville, Tenn...
New Orleans, La..
Dec. 31.1921
Dec. 31.1922
Dec. 31.1923
Atlanta, Ga.
Birmingham, Ala.
Atlanta, Ga...
Dec. 31.1921
Dec. 31.1922
Dec. 31.1923
NEW ORLEANS BRANCH OF THE FEDERAL RESERVE BANK OF ATLANTA.
P. H. Saunders, chairman. Marcus Walker, manager.
P. H. Saunders..
Albert P. Bush. .
F. W. Foote
J. E.Bouden,jr..
R. S.Hecht
H. B. Lightcap..
LeonC. Simon...
New Orleans, La..
Mobile, Ala
Hattiesburg, Miss.
New Orleans, La..
.do.
Jackson, Miss
New Orleans, La..
Dec. 31,1921
Do.
Do.
Do.
Do.
Do.
Do.
BIRMINGHAM BRANCH OF THE FEDERAL RESERVE BANK OF ATLANTA.
W. H. Kettig, chairman. A. E. Walker, manager.
W.H. Kettig
Oscar Wells
T. O. Smith
W. W. Crawford
John H. Frye
Birmingham, Ala
do
do
do
do
Dec. 31,1921
Do.
Do.
Do.
Do.
284
ANNUAL REPORT FEDERAL RESERVE BOARD.
OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS—Continued.
DISTRICT NO. 6—FEDERAL RESERVE BANK OF ATLANTA—Continued.
JACKSONVILLE BRANCH OF THE FEDERAL RESERVE BANK OF ATLANTA.
John C. Cooper, chairman. Geo. R. De Saussure, manager.
Director.
Residence.
John C. Cooper
Fulton Saus^v
E. W. Lane
Giles L. Wilson
Bion H. Barnett.. .
. .
Jacksonville, Fla
..do..
do
. ..do
do
Term expires.
Dec. 31,1921
Do.
Do.
Do.
Do.
NASHVILLE BRANCH OF THE FEDERAL RESERVE BANK OF ATLANTA.
W. H. Hartford, chairman. J. B. McNamara, manager.
Nashville, Tenn.
....do
do
Winchester, Tenn-.
Nashville, Tenn....
W.H.Hartford.
P. N.Davis
J. E.Caldwell...
T. A. Embry
E. A. Lindsey..
Dec. 31,1921
Do/
Do.
Do.
Do.
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:
George M. Reynolds
Charle? H. McNider
E. L. Johnson
Class B:
A. H.Vogel
John W. Blodgett
Albert R. Erskine
Class C:
William A. Heath
Frank C. Ball
James Simpson
Chicago, 111
Mason City, Iowa
Waterloo, Iowa
Dec. 31,1921
Dec. 31,1922
Dec. 31,1923
Milwaukee, Wis
Grand Rapids, Mich.
South Bend, Ind
Dec. 31,1921
Dec. 31,1922
Dec. 31,1923
Evanston, III
Mnncie, Ind
Chicago, 111.
Dec. 31,1921
Dec. 31,1922
Dec. 31,1923
DETROIT BRANCH OF THE FEDERAL RESERVE BANK OF CHICAGO,
R. B. Locke, manager.
John Ballantyne...
Emory W. Clark...
Julias'H. Haas
Charles H. Hodges.
R. B. L o c k e . . . . . . .
Detroit, Mich,
.do
.do.
.do.
.do.
Dec. 31,1921
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:
J. C. Utterback
Sam A. Ziegler
John G. Lonsdale
Class B:
Rolla Wells
W. B. Plunkett
Le Roy Percy
Class C:
Wm. McC. Martin
C. P. J. Mooney
John W. Boehne
Paducah, Ky.
Albion, 111.
St. Louis, Mo.
Dec. 31,1921
Dec. 31,1922
Dec. 31,1923
..do..
Little Rock, Ark.
Greenville, Miss..
Dec. 31,1921
Dec. 31,1922
Dec. 31,1923
St. Louis, Mo
Memphis, Tenn
Evansville, Ind
Dec. 31,1921
Dec. 31,1922
Dec. 31,1923
285
DIRECTORY.
OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS—Continued.
DISTRICT NO. 8—FEDERAL RESERVE BANK OF ST. LOUIS—Continued.
LOUISVILLE BRANCH OF THE FEDERAL RESERVE BANK OF ST. LOUIS.
W. P. Kincheloe, manager.
Director.
Geo. W. Norton
W. C. Montgomery
W. P. Kincheloe
F. M. Sackett
Embry L. Swearingen.
Residence.
Louisville, Ky
Elizabethtown, Ky.
Louisville, Ky
.do.
.do.
Term expires.
Dec. 31,1921
Do.
Do.
Do.
Do.
MEMPHIS BRANCH OF THE FEDERAL RESERVE BANK OF ST. LOUIS.
John J. Heflin, manager.
R. Brinkley Snowden
John D. McDowell
John J Heflin
T. K. Riddick
S. E. Ragland
Memphfa, Term
.do
do
..do .
do
Dec. 31,1921
Do.
Do.
Do.
Do.
LITTLE ROCK BRANCH OF THE FEDERAL RESERVE BANK OF ST. LOUIS.
A. F. Bailey, manager.
0. A. Pratt
J. E. England, jr
A. F. Bailey
Moorhead Wright
G. W. Rogers.
Little Rock, Ark.
.do
....do
....do
....do
Dec. 31,1921
Do.
Do.
Dc.
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:
W. C. McDowell
Theodore Wold
J. C. Bassett
Class B:
F. P. Hixon
F. R. Bigelow
N. B. Holter
Class C:
W. H. Lightner
C. H. Benedict
John H. Rich
Marion, N. Dak
Minneapolis, Minn.
Aberdeen, S. Dak..
Dec. 31,1)21
Dec. 31.1922
Dec. 31.1923
La Crosse, Wis.
St. Paul, Minn.
Helena, Mont..
Dec. 31,1921
Deo. 31,1922
Dec. 31,1923
St. Paul, Minn
Lake Linden, Mich.
Minneapolis, Minn..
Dec. 31.1921
Dec. 31.1922
Dec. 31.1923
DISTRICT NO. 10—FEDERAL RESERVE BANK OF KANSAS CITY.
AsaE. Ramsay, chairmanand Federal Reserve agent. F. W. Fleming, deputy chairman. J. Z. Miller, jr.,
governor.
Class A:
J. C. Mitchell
W. J. Bailey..
E. E. Mullaney
Class B:
T. C. Byrne
M. L. McClure
Harrv W. Gibson
Class C: *
R. H. Malone
F. W. Fleming
Asa E. Ramsay
Denver, Colo
Atchison, Kans.
Hill City, Kans.
Dec. 31,1921
Dec. 31,1922
Dec. 21,1923
Omaha, Nebr
Kansas City, Mo.
Muskogee, Okla..
Dec. 31.1921
Dec. 31.1922
Dec. 31.1923
i Denver, Colo
| Kansas City., Mo
I
do
'.
Dec. 31.1921
Dec. 31.1922
Dec. 31,1923
286
ANNUAL REPORT FEDERAL RESERVE BOARD.
OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS—Continued.
DISTRICT NO. 10—FEDERAL RESERVE BANK OF KANSAS CITY—Continued.
DENVER BRANCH OF T H E FEDERAL RESERVE
BANK OF KANSAS CITY.
C. A. Burkhardt, manager.
Director.
C. C. Parks
A. C. Foster
C. A. Burkhardt
John Evans
Alva B. Adams
Residence.
Term expires.,
Denver, Colo
.. ..do
Dec. 31,1921
Do.
Do.
Do.
Do.
do
do .
Pueblo, Colo
OMAHA BRANCH OF T H E FEDERAL RESERVE BANK OF KANSAS
CITY.
L. H. Earhart, manager.
Luther Drake
Omaha, Nebr ..
Cheyenne, Wyo
Omaha, Nebr.
Lincoln, Nebr
Nebraska City, Nebr
George E. Abbott
L. H. Earhart
P. L. Hall
R. 0 . Marnell
Dec 31 1921
Do.
Do
Do
Do.
OKLAHOMA CITY BRANCH OF T H E FEDERAL RESERVE BANK OF KANSAS CITY.
C. E. Daniel, manager.
Wm. Mee
E. K. Thurmond
Dorset Carter
T. P. Martin, j r . .
C E Daniel
Oklahoma City, Okla...
do
do
Dec. 31 1921
Do.
Do.
do
do
Do
Do.
DISTRICT NO. 11—FEDERAL RESERVE BANK OF DALLAS.
W. F. Ramsey, chairman and Federal Reserve agent. W. B. Newsome, deputy chairman. R. L. Van
Zandt, governor.
Class A:
John T. Scott
B. A. McKinney
Ed. Hall
Class B:
Frank Kell
Marion Sansom
J. J. Culbertson
Class C:
W B Newsome
H. 0 . Wooten
W. F. Ramsey
Houston, Tex
Dallas, Tex
Bryan, Tex
Dec. 31,1921
Dec. 31,1922
Dec. 31,1923
Wichita Falls, Tex
Fort Worth Tex
Paris, Tex
Dec. 31,1921
Dec. 31,1922
Dec. 31,1923
Dallas, Tex
Abilene. Tex
Dallas, Tex
Dec. 31,1921
Dec. 31,1922
Dec. 31,1923
E L PASO BRANCH OF THE FEDERAL RESERVE BANK OF DALLAS.
W. C. Weiss, manager.
U.S.Stewart
A.F.Kerr
W. C. Weiss
W. W. Turney
A. P. Coles
\ El Paso, Tex
:
do
do
I
do
I
do
HOUSTON BRANCH OF THE FEDERAL RESERVE BANK OF
j Dec. 31,1921
I
Do.
!
Do.
!
Do.
I
Do.
DALLAS.
E. F. Gossett, manager.
Frank Andrews
Guy M Bryan
Houston, Tex
do
..
R M Farrar
J J Davis
.
do
..do
Galveston, Tex
Dec. 31,1921
Do.
Do.
Do.
Do.
287
DIRECTORY.
OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS—Continued.
DISTRICT NO. 12—FEDERAL RESERVE BANK OF SAN FRANCISCO.
John Perrin, chairman and Federal Reserve agent. Walton N. Moore, deputy chairman. John IT.
Calkins, governor.
Director.
Residence.
Class A:
M. A. Buchan
C. K. Mclntosh
John Willis Baer
Class B:
Jno. A. McGregor
Elmer H . Cox
A. B . C. Dohrmann
Class C:
Walton N. Moore
Wm. Sproule . .
John Perrin
Term expires.
Palo Alto, Calif
San Francisco, Calif
Pasadena, Calif . . . .
Dec. 31,1921
Dec. 31,1922
Dec. 31,1923
San Francisco, Calif
Madera Calif
San Francisco, Calif
Dec. 31,1921
Dec. 31,1922
Dec. 31,1923
Dec. 31,1921
Dec. 31,1922
Dec. 31,1923
do
do
do
SPOKANE BRANCH OF T H E F E D E R A L RESERVE BANK OF SAN FRANCISCO.
W. L. Partner, manager.
Spokane, Wash
do
do
Hooper, Wash
Spokane, Wash
D. W . T w o h y . . .
R. L. Rutter....
W . L . Partner..
Peter McGregor.
G.I.Toevs
!
j
I
Dec. 31,1921
Do.
Do.
Do.
Do.
SEATTLE BRANCH OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO.
C. R. Shaw, manager.
M. F . Backus
M. A. Arnold
C.R.Shaw
C.H.Clarke
Charles E . Peabody
Seattle, Wash.
do
do
do
|
do
i
Dec. 31,1921
Do.
Do.
Do.
Do.
PORTLAND BRANCH OF T H E F E D E R A L RESERVE BANK OF SAN FRANCISCO.
Frederick Greenwood, manager.
Edward Cookingham
J. C Ainsworth
Frederick Greenwood
Nathan Strauss
Portland, Oreg.
do
do
do
Dec. 31,1921
Do
Do.
Do.
SALT LAKE CITY BRANCH OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO.
R. B . Mother well, manager.
L. H. Farnsworth
R. B . Mother well
Chapin A. Day
G.G.Wright
Lafayette Hanchett
Salt Lake City, Utah.,
.do.
Ogden, Utah
Salt Lake City, Utah.
do
Dec. 31,1921
Do.
Do.
Do.
Do.
LOS ANGELES BRANCH OF T H E F E D E R A L RESERVE BANK OF SAN FRANCISCO.
C. J. Shepherd, manager.
A. J. Waters
J.F.Sartori
C.J. Shepherd
I . B . Newton
Henry M. Robinson
Los Angeles, Calif..
.do
.do.
..do.
..do.
Dec. 31,1921
Do.
Do.
Do.
Do.
288
ANNUAL REPORT FEDERAL RESERVE BOARD.
FEDERAL ADVISORY COUNCIL.
[Elected for year 1921.J
District No. 1.—Philip Stockton, president Old Colony Trust Co., Boston, Mass.
District No. 2.—Paul M. Warburg, president American Acceptance Council, New
York City.
District No. 3.—L. L. Rue, president Philadelphia National Bank, Philadelphia, Pa.
District No. 4.—Corliss E. Sullivan, vice president Central National Bank Savings
& Trust Co., Cleveland, Ohio.
District No. 5.—Joseph G. Brown, president Citizens National Bank, Raleigh, N. C.
District No. 6.—Edward W. Lane, president Atlantic National Bank, Jacksonville,
Fla.
District No. 7.—John J. Mitchell, chairman Illinois Trust & Savings Bank, Chicago,
District
District
District
District
No. 8.—F. 0 . Watts, president First National Bank, St. Louis, Mo.
No. 9.—C. T. Jaffray, president First National Bank, Minneapolis, Minn.
No. 10.—E. F. Swinney, president First National Bank, Kansas City, Mo.
No. 11.—R. L. Ball, chairman National Bank of Commerce, San Antonio,
Tex.
District No. 12.—A. L. Mills, president First National Bank, Portland, Oreg.
REGULATIONS OF THE FEDERAL RESERVE BOARD.
WASHINGTON, October 6, 1920.
The Federal Reserve Board transmits herewith a new issue of all its regulations of
1917 applicable to member banks. Regulation L, relating to "Interlocking bank
directorates under the Clayton Act," is entirely new. Regulation F of the new series
supersedes Regulation F, Series of 1919, and Regulation K of the new series supersedes
Regulation K, Series of 1920, issued in March of the present year. The other regulations of the new series supersede the corresponding regulations of the 1917 series.
Regulations A, B, and I have been materially amended. Regulation C has been
amended only by the insertion of two sentences in the first paragraph with reference
to the question of when trust receipts and bills of lading drafts may be considered
"actual security" within the meaning of section 13 of the Federal Reserve Act.
There have been no amendments to Regulation D with the exception of two changes
intended to make clear that in the case of *' time deposits, open accounts,'' the 30 days'
written notice of withdrawal must be actually required by the bank, whereas in the
case of "savings accounts" and "time certificates of deposit" the requirement of
notice will be complied Avith if the bank reserves the right to demand 30 clays' written
notice of withdrawals. The only substantial change in Regulation K is an amendment
to the paragraph entitled "Acceptances," which permits corporations organized under
the provisions of section 25a of the Federal Reserve Act to accept, subject to substantially the same conditions as are imposed Jby law upon member banks, drafts drawn
by banks or bankers located 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 those countries, dependencies, or possessions. There have been no
substantial changes in Regulations F and H, and Regulations E and G are identically
the same as in the 1917 series.
Regulation J, relating to "Check clearing and collection," has not been changed in
substance except that certain provisions have been struck out which are no longer
applicable. Nothing has been added to this regulation and it contains only very general provisions. At the present time conditions vary so much in the different districts
that it is impracticable to formulate detailed regulations on this subject to be applied
in all districts. The Federal Reserve Board will consider a revision of this regulation
if and when future developments make it seem practicable and advisable to issue a
more comprehensive regulation.
Instructions which concern only Federal Reserve Agents or Federal Reserve Banks
will be covered in separate letters or regulations, as in the past.
W. P. G. HARDING, Governor.
W. T. CHAPMAN, Secretary.
REGULATIONS OF THE BOARD.
289
REGULATION A, SERIES OF 1920.
(Superseding Regulation A of 1917.)
REDISCOUNTS U N D E R SECTION
13.
A. NOTES, DRAFTS, AND BILLS OP EXCHANGE.
I. General statutory
provisions.
Any Federal Reserve Bank may discount for any of its member banks any note,
draft, or bill of exchange, provided—
(a) It has a maturity at the time of discount of not more than 90 days, exclusive
of days of grace; but if drawn or issued for agricultural purposes or based on live stock,
it may have a maturity at the time of discount of not more than six months, exclusive of days of grace.
(6) It arose out of actual commercial transactions; that is, it must be a note, draft,
or bill of exchange which has been issued or drawn for agricultural, industrial, or
commercial purposes, or the proceeds of which have been used or are to be used for
such purposes.
(c) It was not issued for carrying or trading in stocks, bonds, or other investment
securities, except bonds and notes of the Government of the United States.
(d) The aggregate of notes, drafts, and bills bearing the signature or indorsement
of any one borrower, whether a person, company, firm, or corporation, rediscounted
for any
one member bank, whether State or National, shall at no time exceed 10 per
cent x of the unimpaired capital and surplus of such bank; but this restriction shall
not apply to the discount of bills of exchange drawn in good faith against actually
existing values.
(e) It is indorsed by a member bank.
(/) It conforms to all applicable provisions of this regulation.
No Federal Reserve Bank may discount for any member State bank or trust company any of the notes, drafts, or bills of any one borrower who is liable for borrowed2
money to such State bank or trust company in an amount greater than 10 per cent
of the capital and surplus of that State bank or trust company, but in determining
the amount of money borrowed from such State bank or trust company the discount
of bills of exchange drawn in good faith against actually existing value and the discount of commercial or business paper actually owned by the person negotiating the
same shall not be included.
Any Federal Reserve Bank may make advances to its member banks on their
promissory notes for a period not exceeding 15 days, provided that they are secured
by notes, drafts, bills of exchange, or bankers' acceptances which are eligible for
rediscount or for purchase by Federal Reserve Banks, or by the deposit or pledge of
bonds or,notes of the United States, or bonds of the War Finance Corporation.
I I . General character of notes, drafts, and bills of exchange eligible.
The Federal Reserve Board, exercising its statutory right to define the character
of a note, draft, or bill of exchange eligible for rediscount at a Federal Reserve Bank,
has determined that—
(a) It must be a note, draft, or bill of exchange which has been issued or drawn, or
the proceeds of which have been used or are to be3 used in the first instance, in producing, purchasing, carrying, or marketing goods in one or more of the steps of the
1
Under the terms of section 11 (m) as amended by the act of Mar. 3,1919, a Federal Reserve Bank may,
until Dec. 31, 1920, rediscount for any member bank, whether State or National, notes, drafts, and bills
bearing the signature or indorsement of any one borrower in an amount not to exceed 20 per cent of the member bank's capitaland surplus, provided that the excess over and above 10 per cent be secured by not less
than a like face amount of bonds or notes of the United States issued since Apr. 24, 1917, or certificates of
indebtedness
of the United States.
2
Under the terms of section 11 (m) as amended by the act of Mar. 3,1919, a Federal Reserve Bank may,
until Dec. 31,1920, rediscount for a member State bank or trust company paper of any one borrower secured
by not less than a like face amount of bonds or notes of the United States issued since Apr. 24, 1917, or
certificates of indebtedness of the United States, even though such State bank or trust company may
already have loaned to the borrower under his regular line of credit in excess of the 10 per cent limit defined
above. If, however, the member State bank or trust company has loaned to one borrower in excess of that
10 per cent limit under his regular line of credit the Federal Reserve Bank can not rediscount for that State
bank or trust company any of the paper of that borrower taken under that regular line of credit, but may
rediscount any paper so secured by Government obligations of the kinds specified up to an amount not
in3excess of 20 per cent of the capital and surplus of such State bank or trust company.
When used in this regulation the word "goods" shall be construed to include goods, wares, merchandise, or agricultural products, including live stock.
290
ANNUAL REPORT FEDERAL RESERVE BOARD.
process of production, manufacture, or distribution, or for the purpose of carrying
or trading in bonds or notes of the United States.
(6) It must not be a note, draft, or bill of exchange the proceeds of which have
been used or are to be used for permanent or fixed investments of any kind, such as
land, buildings, or machinery, or for any other capital purpose.
(c) It must not be a note, draft, or bill of exchange the proceeds of which have
been used or are to be used for investments of a purely speculative character or for
the purpose of lending to some other borrower.
(d) It may be secured by the pledge of goods or callateral of any nature, including
paper, which is ineligible for rediscount, provided it (the note, draft, or bill of exchange) is otherwise eligible.
III. Applications for rediscount.
All applications for the rediscount of notes, drafts, or bills of exchange must contain a
certificate of the member bank, in form to be prescribed by the Federal Reserve Bank,
that, to the best of its knowledge and belief, such notes, drafts, or bills of exchange have
been issued for one or more of the purposes mentioned in II (a), and, in the case of a
member State bank or trust company, all applications must contain a certificate or
guaranty to the effect that the borrower is not liable, and will not be permitted to
become liable during the time his paper is held by the Federal Reserve Bank, to such
bank or trust company for borrowed money in an amount greater than that specified
in I above.
IV. Promissory notes.
(a) Definition.—A promissory note, within the meaning of this regulation, is defined as an unconditional promise, in writing, signed by the maker, to pay, in the
United States, at a fixed or determinable future time, a sum certain in dollars to
order or to bearer.
(b) Evidence of eligibility and requirement of statements.—A Federal Reserve Bank
must be satisfied by reference to the note or otherwise that it is eligible for rediscount.
The member bank shall certify in its application whether the note offered for rediscount has been discounted for a depositor other than a bank or for a nondepositor and,
if discounted for a bank, whether for a member or a nonmember bank. The member
bank must also certify whether a financial statement of the borrower is on file with it.
A recent financial statement of the borrower must be on file with the member bank
in all cases, except with respect to any note discounted by a member bank for a depositor other than a bank or another member bank if—
(1) It is secured by a warehouse, terminal, or other similar receipt covering
goods in storage, or by bonds or notes of the United States; or
(2) The aggregate of obligations of the borrower rediscounted and offered for
rediscount at the Federal Reserve Bank by the member bank is less than a sum
equal to 10 per cent of the paid-in capital of the member bank and is less than
$5,000.
The Federal Reserve Bank shall use its discretion in taking the steps necessary to
satisfy itself as to eligibility. Compliance of a note with II (b) may be evidenced by a
statement of the borrower showing a reasonable excess of quick assets over current liabilities. A Federal Reserve Bank may, in all cases, require the financial statement
of the borrower to be filed with it.
V. Drafts, bills of exchange, and trade acceptances.
(a) Definition.—A draft or bill of exchange, within the meaning of this regulation,
is defined as an unconditional order in writing, addressed by one person to another,
signed by the person giving it, requiring the person to whom it is addressed to pay in
the United States, at a fixed or determinable future time, a sum certain in dollars to the
order of a specified person; and a trade acceptance is defined4 as a draft or bill of exchange, drawn by the seller on the purchaser of goods sold, and accepted by such
purchaser.
(6) Evidence of eligibility and requirement of statements.—A Federal Reserve Bank shall
take such steps as it deems necessary to satisfy itself as to the eligibility of the draft,
bill, or trade acceptance offered for rediscount and may require a recent financial
statement of one or more parties to the instrument. The draft, bill, or trade acceptance
should be drawn so as to evidence the character of the underlying transaction, but if it
is not so drawn evidence of eligibility may consist of a stamp or certificate affixed by
the acceptor or drawer in a form satisfactory to the Federal Reserve Bank.
4
A consignment of goods or a conditional sale of goods can not be considered "goods sold" within the
meaning of this clause. The purchase price of goods plus the cost of labor in effecting their installation
may be included in the amount for which the trade acceptance is drawn.
REGULATIONS OF THE BOARD.
291
VI. Six months' agricultural paper.
(a) Definition.—Six months' agricultural paper, within the meaning of this regulation, is defined as a note, draft, bill of exchange, or trade acceptance drawn or issued
for agricultural purposes, or based on live stock; that is, a note, draft, bill of exchange,
or trade acceptance the proceeds of which have been used, or are to be used, for agricultural purposes, including the breeding, raising, fattening, or marketing of live
stock, and which has a maturity at the time of discount of not more than six months,
exclusive of days of grace.
(b) Eligibility.—To be eligible for rediscount, six months' agricultural paper,
whether a note, draft, bill of exchange, or trade acceptance, must comply with the
respective sections of this regulation which would apply to it if its maturity were 90
days or less.
B. BANKERS' ACCEPTANCES.
(a) Definition.—A banker's acceptance within the meaning of this regulation is
defined as a draft or bill of exchange, whether payable in the United States or abroad
and whether payable in dollars or some other money, of which the acceptor is a bank
or trust company, or a firm, person, company, or corporation engaged generally in the
business of granting bankers' acceptance credits.
(b) Eligibility .—A Federal Eeserve Bank may rediscount any such bill having a
maturity at time of discount of not more than three months, exclusive of days of grace,
which has been drawn under a credit opened for the purpose of conducting or settling
accounts resulting from a transaction or transactions involving any one of the following:
(1) The shipment of goods between the United States and any foreign country,
or between the United States and any of its dependencies or insular possessions, or
between foreign countries. While it is not necessary that shipping documents
covering goods in the process of shipment be attached to drafts drawn for the purpose of financing the exportation or importation of goods, and while it is not essential, therefore, that each such draft cover specific goods actually in existence at the
time of acceptance, nevertheless it is essential as a prerequisite to eligibility either
(a) that shipping documents or a documentary export draft be attached at the time
the draft is presented for acceptance, or (6) if the goods coArered by the credit
have not been actually shipped, that there be in existence a specific and bona fide
contract providing for the exportation or importation of such goods at or within a
specified and reasonable time and that the customer agree that the accepting bank
will be furnished in due course with shipping documents covering such goods or
with exchange arising out of the transaction being financed by the credit. A contract between principal and agent will not be considered a bona fide contract of
the kind required above, nor is it enough that there be a contract providing merely
that the proceeds of the acceptance will be used only to finance the purchase or
shipment of goods to be exported or imported.
(2) The shipment of goods within the United States, provided shipping documents conveying security title are attached at the
time of acceptance, or
(3) The storage of readily marketable staples,5 provided that the bill is secured
at the time of acceptance by a warehouse, terminal, or other similar receipt, conveying security title to such staples, issued by a party independent of the customer, and provided further that the acceptor remains secured throughout the life of
the acceptance. In the event that the goods must be withdrawn from storage prior
to the maturity of the acceptance or the retirement of the credit, a trust receipt or
other similar document covering the goods, may be substituted in lieu of the original document, provided that such substitution is conditioned upon a reasonably
prompt liquidation of the credit. In order to insure compliance with this condition it should be required, when the original document is released, either (a) that
the proceeds of the goods will be applied within a specified time toward a liquidation of the acceptance credit or (b) that a new document, similar to the original
one, will be resubstituted within a specified time,
and a Federal Reserve Bank may also rediscount any bill drawn by a bank or banker
in a foreign country or dependency or insular possession of the United States for the
purpose of furnishing dollar exchange, as provided in regulation C, provided that it
has a maturity at the time of discount of not more than three months, exclusive of days
of grace.
5
A readily marketable staple within the meaning of these regulations may be denned as an article of
commerce, agriculture, or industry of such uses as to make it the subject of constant dealings in ready
markets with such frequent quotations of price as to make (a) the price easily and definitely ascertainable
and (6) the staple itself easy to realize upon by sale at any time.
292
ANNUAL REPORT FEDERAL RESERVE BOARD.
(c) General conditions.—(1) Acceptances in excess of 10 per cent: In order to "be eligible, acceptances for any one customer in excess of 10 per cent of the capital and surplus of the accepting tank must remain actually secured throughout the life of the
acceptance. Tn the case of acceptances of member banks this security must consist
of shipping documents, warehouse receipts or other such documents, or some other
actual security growing out of the same transaction as the acceptance, such as documentary drafts, trade acceptances, terminal receipts, or trust receipts which cover
goods of such a character as to insure at all times a continuance of an effective and
lawful lien in favor of the accepting bank. Other trust receipts are not security
within the meaning of this paragraph if they permit the customer to have access to or
control over the goods.
(2) Maturity: Although a Federal Reserve Bank may legally rediscount an acceptance having a maturity at the time of discount of not more than three months, exclusive of days of grace, it may decline to rediscount any acceptance the maturity of
which is in excess of the usual or customary period of credit required to finance the
underlying transaction or which is in excess of that period reasonably necessary to
finance such transaction. Since the purpose of permitting the acceptance of drafts
secured by warehouse receipts or other such documents is to permit of the temporary
holding of readily marketable staples in storage pending a reasonably prompt sale,
shipment, or distribution, no such acceptance should have a maturity in excess of
the time ordinarily necessary to effect a reasonably prompt sale, shipment, or distribution into the process of manufacture or consumption.
(3) Renewals: While a national bank may properly enter into an agreement haying
more than six months to run by which it obligates itself to accept drafts of the kinds
described in Regulation C, each individual draft accepted under the terms of that
agreement must, in order to be eligible, conform in all respects to the provisions of the
law and these regulations. Inasmuch as each individual acceptance must itself conform to the terms of the law, no renewal draft, whether or not contracted for in advance, can be eligible if at the time of its acceptance the period required for the conclusion of the transaction out of which the original draft was drawn shall have elapsed.
The question of the eligibility of renewal drafts, therefore, must necessarily depend
upon the stage of the transaction at the time the renewal drafts are drawn.
(rf) Evidence of eligibility.—A Federal Reserve Bank must be satisfied, either by reference to the acceptance itself, or otherwise, that it is eligible for rediscount. The bill
itself should be drawn so as to evidence the character of the underlying transaction,
but if it is not so drawn evidence of eligibility may consist of a stamp or certificate
affixed by the acceptor in form satisfactory to the Federal Reserve Bank.
REGULATION B, SERIES OF 1920.
(Superseding Regulation B of 1917.)
OPEN-MARKET
PURCHASES OF BILLS OF EXCHANGE, TRADE ACCEPTANCES,
B A N K E R S ' ACCEPTANCES UNDER SECTION 14.
AND
I. General statutory provisions.
Section 14 of the Federal Reserve Act provides that Federal Reserve Banks under
rules and regulations to be prescribed by the Federal Reserve Board may purchase
and sell in the open market, at home or abroad, from or to domestic or foreign banks,
firms, corporations, or individuals, bankers' acceptances and bills of exchange of
the kinds and maturities made eligible by the act for rediscount, with or without
the indorsement of a member bank.
IT. General character of bills and acceptances eligible.
The Federal Reserve Board, exercising its statutory right to regulate the purchase
of bills of exchange and acceptances, has determined that a bill of exchange or acceptance to be eligible for purchase by Federal Reserve Banks under this provision of
section 14—
(a) Must conform to the relative requirements of Regulation A, except that a banker's acceptance growing out of a transaction involving the storage within the United
States of goods which have been actually sold, may be purchased, provided that the
acceptor is secured by the pledge of such goods and, provided further, that the bill
conforms in other respects to the relative requirements of Regulation A.
REGULATIONS OF THE BOARD.
293
(b) Must have a maturity at the time of purchase of not more than 90 days, exclusive
of days of grace, unless it is a bill drawn on a banker, when it may have a maturity of
three months, exclusive of days of grace.
(c) Must have been accepted by the drawee prior to purchase by a Federal Reserve
Bank unless it is either accompanied and secured by shipping documents or by a warehouse, terminal, or other similar receipt conveying security title or bears a satisfactory
banking indorsement.
III. Statements.
A bill of exchange, unless indorsed by a member bank, is not eligible for purchase
until a satisfactory statement has been furnished of the financial condition of one or
more of the parties thereto.
A bankers' acceptance, unless accepted or indorsed by a member bank, is not eligible
for purchase until the acceptor has furnished a satisfactory statement of its financial
condition in form to be approved by the Federal Reserve Bank and has agreed in
writing with a Federal Reserve Bank to inform it upon request concerning the transaction underlying the acceptance.
REGULATION C, SERIES OF 1920.
(Superseding Regulation C of 1917.)
ACCEPTANCE BY MEMBER BANKS OF DRAFTS AND BILLS OF EXCHANGE.
A. ACCEPTANCE OF DRAFTS OR BILLS OF EXCHANGE DRAWN AGAINST DOMESTIC OR
FOREIGN SHIPMENTS OF GOODS OR SECURED BY WAREHOUSE RECEIPTS COVERING
READILY MARKETABLE STAPLES.
I. Statutory provisions.
Under the provisions of the fifth paragraph of section 13 of the Federal Reserve Act,
as amended by the acts of September 7, 1916, and June 21, 1917, any member bank
may accept drafts or bills of exchange drawn upon it, having not more than six months'
sight to run, exclusive of days of grace, which grow out of transactions involving the
importation or exportation of goods; 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.1 This paragraph limits the amount which any
bank shall accept for any one person, company, firm, or corporation, whether in a
foreign or domestic transaction, to an amount not exceeding at any time, in the aggregate, more than 10 per centum of its paid-up and unimpaired capital stock and surplus.
This limit, however, does not apply in any case where the accepting bank remains
secured either by attached documents or by some other actual security growing out
of the same transaction as the acceptance. A trust receipt which permits the customer to have access to or control over the goods will not be considered by Federal
Reserve Banks to be "actual security" within the meaning of section 13. A bill of
lading draft, however, is "actual security" even after the documents have been
released, provided that the draft is accepted by the drawee upon or before the surrender of the documents. The law also provides that any bank may accept such bills
up to an amount not exceeding at any time, in the aggregate, more than one-half of its
paid-up and unimpared capital stock and surplus; or, with the approval of the Federal
Reserve Board, up to an amount not exceeding at any time, in the aggregate, more
than 100 per centum of its paid-up and unimpaired capital stock and surplus. In no
event, however, shall the aggregate amount of acceptances growing out of domestic
transactions exceed 50 per centum of such capital stock and surplus.
II. Regulations.
1. Under the provisions of the law referred to above the Federal Reserve Board has
determined that any member bank, having an unimpaired surplus equal to at least 20
per centum of its paid-up capital, which desires to accept drafts or bills of exchange
drawn for the purposes described above, up to an amount not exceeding at any time, in
1
A readily marketable staple within the meaning of these regulations may be denned as an article of
commerce, agriculture, or industry of such uses as to make it the subject of constant dealings in ready markets with such frequent quotations of price as to make (a) the price easily and definitely ascertainable and
(6) the staple itself easy to realize upon by sale at any time.
294
ANNUAL REPORT FEDERAL RESERVE BOARD.
the aggregate, 100 per centum of its paid-up and unimpaired capital stock and surplus,
may file an application for that purpose with the Federal Reserve Board. Such application must be forwarded through the Federal Reserve Bank of the district in
which the applying bank is located.
2. The Federal Reserve Bank shall report to the Federal Reserve Board upon the
standing of the applying bank, stating whether the business and banking conditions
prevailing in its district warrant the granting of such applications.
3. The approval of any such application may be rescinded upon 90 days' notice to
the bank affected.
B. ACCEPTANCE OP DRAFTS OR BILLS OF EXCHANGE DRAWN FOR THE PURPOSE OP
CREATING DOLLAR EXCHANGE.
I. Statutory provisions.
Section 13 of the Federal Reserve Act also provides that any member bank may
accept drafts or bills of exchange drawn upon it having not more than three months'
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.
No member bank shall accept such drafts or bills of exchange for any one bank to an
amount exceeding in the aggregate 10 per centum of the paid-up and unimpaired
capital and surplus of the accepting bank unless the draft or bill of exchange is accompanied by documents conveying or securing title or by some other adequate
security. No member bank shall accept such drafts or bills in an amount exceeding
at any time in the aggregate one-half of its paid-up and unimpaired capital and surplus. This 50 per cent limit is separate and distinct from and not included in the
limits placed upon the acceptance of drafts and bills of exchange as described under
section A of this regulation.
II. Regulations.
Any member bank desiring to accept drafts drawn by banks or bankers in foreign
countries or dependencies or insular possessions of the United States for the purpose
of furnishing dollar exchange shall first make an application to the Federal Reserve
Board setting forth the usages of trade in the respective countries, dependencies, or
insular possessions in which such banks or bankers are located.
If the Federal Reserve Board should determine that the usages of trade in such
countries, dependencies, or possessions require the granting of the acceptance facilities applied for, it will notify the applying bank of its approval and will also publish
in the Federal Reserve Bulletin the name or names of those countries, dependencies,
or possessions in which banks or bankers are authorized to draw on member banks
whose applications have been approved for the purpose of furnishing dollar exchange.
The Federal Reserve Board reserves the right to modify or on 90 days' notice to
revoke its approval either as to any particular member bank or as to any foreign country or dependency or insular possession of the United States in which it has authorized banks or bankers to draw on member banks for the purpose of furnishing dollar
exchange.
REGULATION D, SERIES OF 1920.
(Superseding Regulation D of 1917.)
T I M E DEPOSITS AND SAVINGS ACCOUNTS.
Section 19 of the Federal Reserve Act provides, in part, as follows:
Dei
and ti:
cates of deposit
deposits.
TIME DEPOSITS, OPEN ACCOUNTS.
The term "time deposits, open accounts" shall be held to include all accounts, not
evidenced by certificates of deposit or savings pass books, in respect to which a written
contract is entered into with the depositor at the time the deposit is made that neither
the whole nor any part of such deposit may be withdrawn by check or otherwise,
except on a given date or on written notice, which must be given by the depositor, a
certain specified number of days in advance, in no case less than 30 days.
REGULATIONS OF THE BOARD.
295
SAVINGS ACCOUNTS.
The term "sayings accounts" shall be held to include those accounts of the bank
in respect to which, by its printed regulations, accepted by the depositor at the time
the account is opened—
(a) The pass book, certificate, or other similar form of receipt must be presented
to the bank whenever a deposit or withdrawal is made, and
(b) The depositor may at any time be required by the bank to give notice of an
intended withdrawal, not less than 30 days before a withdrawal is made.
TIME CERTIFICATES OF DEPOSIT.
A "time certificate of deposit1' is denned as an instrument evidencing the deposit
with a bank, either with or without interest, of a certain sum. specified on the face of
the certificate payable in whole or in part to the depositor or on his order—
(a) On a certain date, specified on the certificate, not less than 30 days after the
date of the deposit, or
(b) After the lapse of a certain specified time subsequent to the date of the certificate, in no case less than 30 days, or
(c) Upon written notice, which the bank may at its option require to be given a
certain specified number of days, not less than 30 days, before the date of
repayment, and
(d) In 'all cases only upon presentation of the certificate at each withdrawal for
proper indorsement or surrender.
REGULATION E, SERIES OF 1920.
(Superseding Regulation E of 1917.)
PURCHASE OF WARRANTS.
STATUTORY REQUIREMENTS.
Section 14 of the Federal Reserve Act reads, in part, as follows:
Every Federal Reserve Bank shall have powered) To buy and sell, at home or abroad, bonds and notes of the United States, and bills, notes, revenue
bonds, and warrants with a maturity from date of purchase, of not exceeding six months, issued in anticipation of the collection of taxes or in anticipation of the receipt of assured revenues by any State, county,
district, political subdivision, or municipality in the continental United States, including irrigation, drainage, and reclamation districts, such purchases to be made in accordance with rules and regulations prescribed by the Federal Reserve Board.
For brevity's sake, the term "warrant" when used in this regulation shall be construed to mean " bills, notes, revenue bonds, and warrants, with a maturity from date
of purchase of not exceeding six months," and the term "municipality" shall be
construed to mean ''State, county, district, political subdivision, or municipality
in the continental United States, including irrigation, drainage, and reclamation
districts."
REGULATION.
I. Any Federal Reserve Bank may purchase warrants issued by a municipality in
anticipation of the collection of taxes or in anticipation of the receipt of assured
revenues, provided—
(a) They are the general obligations of the entire municipality; it being intended
to exclude as ineligible for purchase all such obligations as are payable
from "local benefit" and "special assessment" taxes when the municipality at large is not directly or ultimately liable;
(b) They are issued in anticipation of taxes or revenues which are due and payable
on or before the date of maturity of stich warrants; but the Federal
Reserve Board may waive this condition in specific cases. For the
purposes of this regulation, taxes shall be considered as due and payable
on the last day on which they may be paid without penalty;
(c) They are issued by a municipality—
(1) Which has been in existence] for a period of 10 years;
(2) Which for a period of 10 years previous to the purchase has not
defaulted* for longer than 15 days in the payment of any part of
either principal or interest of any funded debt authorized to be
contracted by it;
(3) Whose net funded indebtedness* does not exceed 10 per centum of
the valuation of its taxable property, to be ascertained by the last
preceding valuation of property for the assessment of taxes.
1
See appendix, p. 296.
45525°— 21
20
296
ANNUAL REPORT FEDERAL RESERVE BOARD.
II. Except with the approval of the Federal Reserve Board, no Federal Reserve
Bank shall purchase and hold an amount in excess of 25 per centum of the total
amount of warrants outstanding at any time and issued in conformity with provisions
of section 14 (7;), above quoted, and actually sold by a municipality.
III. Except with the approval of the Federal Reserve Board, the aggregate amount
invested by any Federal Reserve Bank in warrants of all kinds shall not exceed at
the time of purchase a sum equal to 10 per centum of the deposits kept by its member
banks with such Federal Reserve Bank.
IV. Except with the approval of the Federal Reserve Board, the maximum amount
which may be invested at the time of purchase by any Federal Reserve Bank in
warrants of any single municipality shall be limited to the following percentages
of the deposits kept in such Federal Reserve Bank by its member banks:
Five per centum of such deposits in warrants of a municipality of 50,000 population or over;
Three per centum of such deposits in warrants of a municipality of over 30,000
population, but less than 50,000;
One per centum of such deposits in warrants of a municipality of over 10.000
population, but less than 30,000.
V. Warrants of a municipality of 10,000 population or less shall be purchased only
with the special approval of the Board.
The population of a municipality shall be determined by the last, Federal or
State census. Where it can not be exactly determined the Board will make special
rulings.
VI. Opinion of recognized counsel on municipal issues or of the regularly appointed
counsel of the municipality as to the legality of the issue shall be secured and approved
in each case by counsel for the Federal Reserve Bank.
VII. Any Federal Reserve Bank may purchase from any of its member banks
warrants of any municipality, indorsed by such member bank, with waiver of demand,
notice, and protest, up to an amount not to exceed ]0 per centum of the aggregate
capital and surplus of such member bank: Provided, however, That such warrants
comply with provisions I and III of these regulations, except that where a period
of 10 years is mentioned in I (c) hereof a period of 5 years shall be substituted for the
purposes of this clause.
APPENDIX TO REGULATION E.
"NET FUNDED INDEBTEDNESS."
The term "net funded indebtedness" is hereby defined to mean the legal gross
indebtedness of the municipality (including the amount of an> school district or
other bonds wnich depend for their redemption upon taxes levied upon property
within the municipality) less the aggregate of the following items:
(1) The amount of outstanding bonds or other debt obligations made payable
from current revenues;
(2) The amount of outstanding bonds issued for the purpose of providing the
inhabitants of a municipality with public utilities, such as waterworks,
docks, electric plants, transportation facilities, etc.: Provided, That evidence is submitted showing that the income from such utilities is sufficient
for maintenance, for payment of interest on such bonds, and for the accumulation of a sinking fund for their redemption;
(3) The amount of outstanding improvement bonds, issued under laws which
provide for the levying of special assessments against abutting property
in amounts sufficient to insure the payment of interest on the bonds and
the redemption thereof: Provided, That such bonds are direct obligations
of the municipality and included in the gross indebtedness of the municipality ;
(4) The total of all sinking funds accumulated for the redemption of the gross
indebtedness of the municipality, except sinking funds applicable to
bonds just described in (1), (2), and (3) above.
"EXISTENCE" AND "NONDEFAULT."
Warrants will be construed to comply with that part of I (c) of Regulation E relative
to term of existence and nondefault, under the following conditions:
(1) Warrants issued by or in behalf of any municipality which was, subsequent
to the issuance of such warrants, consolidated with or merged into an existing political
division which meets the requirements of these regulations, will be deemed to be
the warrants of such political division: Provided, That such warrants were assumed
REGULATIONS OF THE BOARD.
297
by such political division under statutes and appropriate proceedings the effect of
which is to make such warrants general obligations of such assuming political division
and payable, either directly or ultimately, without limitation to a special fund from
the proceeds of taxes levied upon all the taxable real and personal property within
its territorial limits.
(2) Warrants issued by or in behalf of any municipality which was, subsequent
to the issuance of such warrants, wholly succeeded by a newly organized political
division whose term of existence, added to that of such original political division
or of any other political division so succeeded, is equal to a period of 10 years will be
deemed to be warrants of such succeeding political division: Provided, That during
such period none of such political divisions shall have defaulted for a period exceeding
15 days in the payment of any part of either principal or interest of any funded debt
authorized to be contracted by it: And provided further, That such warrants were
assumed by such new political division under statutes and appropriate proceedings
the effect of which is to make such warrants general obligations of such assuming
political division and payable, either directly or ultimately, without limitation to a
special fund from the proceeds of taxes levied upon all the taxable real and personal
property within its territorial limits.
(3) Warrants issued by or in behalf of any municipality which, prior to such
issuance, became the successor of one or more, or was formed by the consolidation
or merger of two or more, preexisting political divisions, the term of existence of one
or more of which, added to that of such succeeding or consolidated political division,
is equal to a j)eriod of 10 years, will be deemed to be warrants of a political division
which has been in existence for a period of 10 years: Provided, That during such period
none of such original, succeeding, or consolidated political divisions shall have
defaulted for a period exceeding 15 days in the payment of any part of either principal
or interest of any funded debt authorized to be contracted by it.
REGULATION F, SERIES OF 1920.
(Superseding Regulation F of 1919.)
T R U S T P O W E R S OF NATIONAL B A N K S .
I. Statutory
-provisions.
The Federal Reserve Act as amended by the act of September 26, 1918, provides
in part:
SEC. 11. The Federal Reserve Board shall be authorized and empowered:
(k) To grant by special permit to national banks applying therefor, when not in contravention of State
or local law, the right to act as trustee, executor, administrator, registrar of stocks and bonds, guardian of
estates, assignee, receiver, committee of estates of lunatics, or in any other fiduciary capacity in which
State banks, trust companies, or other corporations which come into competition with national banks
are permitted to act under the laws of the State in which the national bank is located.
Whenever the laws of such State authorize or permit the exercise of any or all of the foregoing powers
by State banks, trust companies, or other corporations which compete with national banks, the granting
to and the exercise of such powers by national banks shall not be deemed to be in contravention of State
or local law within the meaning of this act.
National banks exercising any or all of the powers enumerated in this subsection shall segregate all assets
held in anyfiduciarycapacity from the general assets of the bank and shall keep a separate set of books and
records showing in proper detail all transactions engaged in under authority of this subsection. Such
books and records shall be open to inspection by the State authorities to the same extent as the books and
records of corporations organized under State law which exercise fiduciary powers, but nothing in this
act shall be construed as authorizing the State authorities to examine the books, records, and assets of the
national bank which are not held in trust under authority of this subsection.
No national bank shall receive in its trust department deposits of current funds subject to check or the
deposit of checks, drafts, bills of exchange, or other items for collection or exchange purposes. Funds
deposited or held in trust by the bank awaiting investment shall be carried in a separate account and shall
not be used by the bank in the conduct of its business unless it shallfirstset aside in the trust department
United States bonds or other securities approved by the Federal Reserve Board.
In the event of the failure of such bank the owners of the funds held in trust for investment shall have
a lien on the bonds Tor other securities so set apart in addition to their claim against the estate of the bank.
Whenever thelaw s of a State require corporations acting in afiduciarycapacity to deposit securities with
the State authorities for the protection of private or court trusts, national banks so acting shall be required
to make similar deposits and securities so deposited shall be held for the protection of private or court trusts,
as provided by the State law.
National banks in such cases shall not be required to execute the bond usually required of individuals
if State corporations under similar circumstances are exempt from this requirement.
National banks shall have power to execute such bond when so required by the laws of the State.
In any case in which the laws of a State require that a corporation acting as trustee, executor, administrator, or in any capacity specified in this section, shall take an oath or make an affidavit, the president,
vice president, cashier, or trust officer of such national bank may take the necessary oath or execute the
necessary affidavit.
It shall be unlawful for any national banking association to lend any officer, director, or employee any
funds held in trust under the powers conferred by this section. Any officer, director, or employee making
298
ANNUAL REPORT FEDERAL RESERVE BOARD.
such loan, or to whom such loan is made, may be fined not more than $5,000 or imprisoned not more than
five years, or may be both fined and imprisoned, in the discretion of the court.
In passing upon applications for permission to exercise the powers enumerated in this subsection, the
Federal Reserve Board may take into consideration the amount of capital and surplus of the applying
TDank whether or not such capital and surplus is sufficient under the circumstances of the case, the needs
of the community to be served, any and other facts and circumstances that seem to it proper, and may
grant or refuse the application accordingly: Provided, That no permit shall be issued to any national banking association having a capital and surplus less than the capital and surplus required by State law of
State banks, trust companies, and corporations exercising such powers.
II. Applications.
A national bank desiring to exercise any or all of the powers authorized by section
11 (k) of the Federal Reserve Act, as amended by the Act of September 26, 1918, shall
make application to the Federal Reserve Board, on a form approved by said Board,
for a special permit authorizing it to exercise such powers. In the case of an original
application—that is, where the applying bank has never been granted the right to
exercise any of the powers authorized by section 11 (k)—the application should be
made on F. R. B. Form 61. In the case of a supplemental application—that is,
where the applying bank has already been granted the right to exercise one or more
of the powers authorized by section 11 (k)—the application should be made on
F. R. B. Form 61-b. Both forms are made a part of this regulation and may be
obtained from the Federal Reserve Board or any Federal Reserve Bank.
III. Separate departments.
Every national bank permitted to act under this section shall establish a separate
trust department, and shall place such department under the management of an
officer or officers, whose duties shall be prescribed by the board of directors of the
bank.
IV. Custody of trust securities and investments.
The securities and investments held in each trust shall be kept separate and distinct from the securities owned by the bank and separate and distinct one from
another. Trust securities and investments shall be placed in the joint custody of
two or more officers or other employees designated by the board of directors of the
bank and all such officers and employees shall be bonded.
V. Deposit offunds awaiting investment or distribution.
Funds received or held in the trust department of a national bank awaiting investment or distribution may be deposited in the commercial department of the bank
to the credit of the trust department, provided that the bank first delivers to the
trust department, as collateral security, United States bonds, or other readily marketable securities owned by the bank, which collateral security shall at all times be
equal in market value to the amount of the funds so deposited.
VI. Investment of trust funds.
(a) Private trusts.—Funds held in trust must be invested in strict accordance with
the terms of the will, deed, or other instrument creating the trust. Where the instrument creating the trust contains provisions authorizing the bank, its officers, or its
directors to exercise their discretion in the matter of investments, funds held in trust
may be invested only in those classes of securities which are approved by the directors
of the bank. Where the instrument creating the trust does not specify the character
or class of investments to be made and does not expressly vest in tbe bank, its officers,
or its directors a discretion in the matter of investments, funds held in trust shall be
invested in any securities in which corporate or individual fiduciaries in the State in
which the bank is located may lawfully invest.
(6) Court trusts.—Except as hereinafter provided, a national bank acting as executor, administrator, or in any other fiduciary capacity, under appointment by a court
of competent jurisdiction, shall make all investments under an order of that court,
and copies of all such, orders shall be filed and preserved with the records of the trust
department of the bank. If the court by general order vests a discretion in the national bank to invest funds held in trust, or if under the laws of the State in which the
bank is located corporate fiduciaries appointed by the court are permitted to exercise
such discretion, the national bank so appointed may invest such funds in any securities in which corporate or individual fiduciaries in the State in which the bank is
located may lawfully invest.
REGULATIONS OF THE BOARD.
299
VII. Boohs and accounts.
All books and records of the trust department shall be kept separate and distinct
from other books and records of the bank. All accounts opened shall be so kept as
to enable the national bank at any time to furnish information or reports required by
the Federal or State authorities, and such books and records shall be open to the inspection of such authorities.
VIII. Examinations.
Examiners appointed by the Comptroller of the Currency or designated by the
Federal Reserve Board will be instructed to make thorough and complete audits of
the cash, securities, accounts, and investments of the trust department of the bank
at the same time that examination is made of the banking department.
IX. Conformity with State laws.
Nothing in these regulations shall be construed to give a national bank exercising
the powers permitted under the provisions of section 11 (k) of the Federal Reserve
Act, as amended, any rights or privileges in contravention of the laws of the State in
which the bank is located within the meaning of that Act.
X. Revocation of permits.
The Federal Reserve Board reserves the right to revoke permits granted under
the provisions of section 11 (k), as amended, in any case where in the opinion of the
Board a bank has willfully violated the provisions of the Federal Reserve Act or of
these regulations or the laws of any State relating to the operations of such bank when
acting in any of the capacities permitted under the provisions of section 11 (k), as
amended.
XI. Changes in regulations.
These regulations are subject to change by the Federal Reserve Board; provided,
however, that no such change shall prejudice any obligation undertaken in good
faith under regulations in effect at the time the obligation was assumed.
REGULATION G, SERIES OF 1920.
(Superseding Regulation G of 1917.)
LOANS ON F A R M L A N D AND O T H E R R E A L ESTATE.
Section 24 of the Federal Reserve Act provides in part that—
Any national banking association not situated in a central reserve city may make loans secured by improved and unencumbered farm land situated within its Federal reserve district or within a radius of one
hundred miles of the place in which such bank is located, irrespective of district lines, and may also make
loans secured by improved and unencumbered real estate located within one hundred miles of the place
in which such bank islocated, irrespective of district lines; but no loan made upon the security of such farm
land shall be made for a longer time than five years, and no loan made upon the security of such real estate
as distinguished from farm land shall be made for a longer time than one year nor shall the amount of any
such loan, whether upon such farm land or upon such real estate, exceedfiftyper centum of the actual value
of the property offered as security. Any such bank may make such loans, whether secured by such farm
land or such real estate, in an aggregate sum equal to twenty-five per centum of its capital and surplus or
to one-third of its time deposits and such banks may continue hereafter as heretofore to receive time deposits
and to pay interest on the same.
1
National banks not located in central reserve cities may, therefore, legally make
loans secured by improved and unencumbered farm land or other real estate" as provided by this section.
Certain conditions and restrictions must, however, be observed—•
(a) There must be no prior lien on the land; that is, the lending bank must hold
an absolute first mortgage or deed of trust.
(b) The amount of the loan must not exceed 50 per cent of the actual value of the
land by which it is secured.
(c) The maximum amount of loans which a national bank may make on real estate,
whether on farm land or on other real estate as distinguished from farm land, is limited
under the terms of the Act to an amount not in excess of one-third of its time deposits
at the time of the making of the loan, and not in excess of one-third of its average time
deposits during the preceding calendar year: Provided, however, That if one-third of
such time deposits as of the date of making the loan or one-third of the average time
300
ANNUAL REPORT FEDERAL RESERVE BOARD.
deposits for the preceding calendar year, is less than one-fourth of the capital and surplus of the bank as of the date of making the loan, the bank in such event shall have
authority to make loans upon real estate under the terms of the Act to the extent of
one-fourth of the bank's capital and surplus as of that date.
(d) Farm land to be eligible as security for a loan by a national bank must be situated within the Federal reserve district in which such bank is located or within a
radius of 100 miles of such bank irrespective of district lines.
(e) Real estate as distinguished from farm land to be eligible as security for a loan
by a national bank must be located within a radius of 100 miles of such bank irrespective of district lines.
(f) The right of a national bank to "make loans" under section 24 includes the
right to purchase or discount loans already made as well as the right to make such loans
in the first instance: Provided, however, That no loan secured by farm land shall have
a maturity of more than five years from the date on which it was purchased or made
by the national bank and that no loan secured by other real estate shall have a maturity of more than one year from such date.
(g) Though no national bank is authorized under the provisions of section 24 to
make a loan on the security of real estate, other than farm land, for a period exceedingone year, nevertheless, at the end of the year, it may properly make a new loan upon
the same security for a period not exceeding one year. The maturing note must be
canceled and a new note taken in its place, but in order to obviate the necessity of
making a new mortgage or deed of trust for each renewal, the original mortgage or
deed of trust may be so drawn in tne first instance as to cover possible future renewals
of the original note. Under no circumstances, however, must the bank obligate itself
in advance to make such a renewal. It must, in all cases, preserve the right to require
payment at the end of the year and to foreclose the mortgage should that action become
necessary. The same principles apply to loans of longer maturities secured by farm
lands.
(h) In order that real estate loans held by bank may be readily classified, a statement signed by the officers making a loan and having knowledge of the facts upon
which it is based must be attached to each note secured by a first mortgage on the land
by which the loan is secured, certifying in detail as of the date of the loan that all of
the requirements of law have been duly observed.
REGULATION H, SERIES OF 1920.
(Superseding Regulation H of 1917.)
M E M B E R S H I P OF STATE B A N K S AND T R U S T COMPANIES.
t
I. Statutory requirements.
Section 9 of the Federal Reserve Act, as amended by the act approved June 21,
1917, which authorizes State banks and trust companies to become members of the
Federal Reserve System, is quoted in the appendix to this regulation on page 302.
II. Banks eligible for
membership.
A State bank or a trust company to be eligible for membership in a Federal Reserve
Bank must comply with the following conditions:
1. It must have been incorporated under a special or general law of the State or
district in which it is located.
2. It must have a minimum paid-up unimpaired capital stock as follows:
In cities or towns not exceeding 3,000 inhabitants, $25,000.
In cities or towns exceeding 3,000 but not exceeding 6,000 inhabitants, $50,000.
In cities or towns exceeding 6,000 but not exceeding 50,000 inhabitants, $100,000.
In cities exceeding 50,000 inhabitants, $200,000.
III. Application for membership.
Any eligible State bank or trust company may make application on F. R. B. Form
83a, made a part of this regulation, to the Federal Reserve Board for an amount of
capital stock in the Federal Reserve Bank of its district equal to 6 per cent of the paidup capital stock and surplus of such State bank or trust company. This application
must be forwarded direct to the Federal Reserve Agent of the district in which the
applying bank or trust company is located and must be accompanied by Exhibits
I, II, and III, referred to on page 1 of the application blank.
REGULATIONS OF THE BOARD.
301
IV. Approval of application.
In passing upon an application the Federal Reserve Board will consider especially—
1. The financial condition of the applying bank or trust company and the general
character of its management.
2. Whether the corporate powers exercised by the applying bank or trust company
are consistent with the purposes of the Federal Reserve Act.
3. Whether the laws of the State or district in which the applying bank or trust
company is located contain provisions likely to prevent proper compliance with the
provisions of the Federal Reserve Act and the regulations of the Federal Reserve Board
made in conformity therewith.
If, in the judgement of the Federal Reserve Board, an applying bank or trust company conforms to all the requirements of the Federal Reserve Act and these regulations, and is otherwise qualified for membership, the Board will issue a certificate of
approval subject to such conditions as it may deem necessary to insure compliance with
the act and these regulations. When the conditions imposed by the Board have been
accepted by the applying bankOTtrust company the Board will issue a certificate of
approval, whereupon the applying bank or trust company shall make a payment to
the Federal Reserve Bank of its district of one-half of the amount of its subscription,
i. e., 3 per cent of the amount of its paid-up capital and surplus, and upon receipt of
this payment the appropriate certificate of stock will be issued by the Federal Reserve
Bank. The remaining half of the subscription of the applying bank or trust company
shall be subject to call when deemed necessary by the Federal Reserve Board.
V. Potvers and restrictions.
Every State bank or trust company while a member of the Federal Reserve System—
1. Shall retain its full charter and statutory rights as a State bank or trust company,
subject to the provisions of the Federal Reserve Act and to the regulations of the Federal Reserve Board, including any conditions embodied in the certificate of approval.
2. Shall maintain such improvements and changes in its banking practice as may
have been specifically required of it by the Federal Reserve Board as a condition of its
admission and shall not lower the standard of banking then required of it; and
3. Shall enjoy all the privileges and observe all those requirements of the Federal
Reserve Act and of the regulations of the Federal Reserve Board made in conformity
therewith which are applicable to State banks and trust companies which have become
member banks.
VI. Examinations and reports.
Every State bank or trust company, while a member of the Federal Reserve System,
shall be subject to examinations made by direction of the Federal Reserve Board or
of the Federal Reserve Bank by examiners selected or approved by the Federal
Reserve Board.
In order to avoid duplication, examinations of State banks and trust companies
made by State authorities will be accepted in lieu of examinations by examiners selected or approved by the Board wherever these are satisfactory to the directors of the
Federal Reserve Bank and where, in addition, satisfactory arrangements for cooperation in the matter of examination between the designated examiners of the Board and
those of the States already exist or can be effected with State authorities. Examiners
from the staff of the Board or of the Federal Reserve Banks will, whenever desirable,
be designated by the Board to act with the examination staff of the State in order that
uniformity in the standard of examination may be assured.
Every State bank or trust company, while a member of the Federal Reserve System,
shall be required to make in each year not less than three reports of condition on
F. R. B. Form 105. Such reports shall be made to the Federal Reserve Bank of its
district on call of such bank, on dates to be fixed by the Federal Reserve Board.
They shall also make semiannual reports of earnings and dividends on F. R. B. Form
107. As dividends may be declared from time to time, each State bank or trust company member shall also furnish to the Federal Reserve Bank of its district a special
notification of dividend declared on F. R. B. Form 107a. F. R. B. Forms 105, 107,
and 107a are made a part of this regulation.
302
ANNUAL REPORT FEDERAL RESERVE BOARD.
APPENDIX TO REGULATION
H.
Section 9 of the Federal Reserve Act as amended by the act approved June 21,
1917, provides that:
Any bank incorporated by special law of any State, or organized under the general laws of any State,
or of the United States, desiring to become a member of the Federal Reserve System, may make application to the Federal Reserve Board, under such rules and regulations as it may prescribe, for the right to
subscribe to the stock of the Federal reserve bank organized within the district in which the applying
bank is located. Such application shall be for the same amount of stock that the applying bank would
be required to subscribe to as a national bank. The Federal Reserve Board, subject to such conditions
asit may prescribe, may permit the applying bank to become a stockholder of such Federal reserve bank.
In acting upon such applications the Federal Reserve Board shall consider the financial condition of
the applying bank, the general character of its management, and whether or not the corporate powers
exercised are consistent with the purposes of this act.
Whenever the Federal Reserve Board shall permit the applying bank to become a stockholder in the
Federal reserve bank of the district its stock subscription shall be payable on call of the Federal Reserve
Board, and stockissued to it shall be held subject to the provisions of this act.
All banks admitted to membership under authority of thissection shall be required to comply with the
reserve and capital requirements of this act and to conform to those provisions of law imposed on national
banks which prohibit such banks from lending on or purchasing their own stock, which relate to the
withdrawal or impairment of their capital stock, and which relate to the payment of unearned dividends.
Such banks and the officers, agents, and employees thereof shall also be subject to the provisions of and
to the penalties prescribed by section fifty-two'hundred and nine of the Revised Statutes, and shall be
required to make reports of condition and of the payment of dividends to the Federal reserve bank of
which they become a member. Not less than three of such reports shall be made annually on call of
the Federal reserve bank on dates to be fixed by the Federal Reserve Board. Failure to inake such
reports within ten days after the date they are called for shall subject the offending bank to a penalty of
$100 a day for each day that it fails to transmit such report; such penalty to be collected by the Federal
reserve bank by suit or otherwise.
As a condition of membership such banks shall likewise be subject to examinations made by direction
of the Federal Reserve Board or of the Federal reserve bank by examiners selected or approved by the
Federal Reserve Board.
Whenever the directors of the Federal reserve bank shall approve the examinations made by the State
authorities, such examinations and the reports thereof may be accepted in lieu of examinations made by
examiners selected or approved by the Federal Reserve Board: Provided, however, That when it deems
it necessary the board may order special examinations by examiners of its own selection and shall in all
cases approve the form of report. The expenses of all examinations, other than those made by State
authorities, shall be assessed against and paid by the banks examined.
If at any time it shall appear to the Federal Reserve Board that a member bank has failed to comply
with the provisions of this section or the regulations of the Federal Reserve Board made pursuant thereto,
it shall be within the power of the board after hearing to require such bank to surrender its stock in the
Federal reserve bank and to forfeit all rights and privileges of membership. # The Federal Reserve Board
may restore membership upon due proof of compliance with the conditions imposed by this section.
Any State bank or trust company desiring to withdraw from membership in a Federal reserve bank
may do so, after six months' written notice shall have been filed with the Federal Reserve Board, upon
the surrender and cancellation of all of its holdings of capital stock in the Federal reserve bank: Provided,
however, That no Federal reserve bank shall, except under express authority of the Federal Reserve
Board, cancel within the same calendar year more than twenty-five per centum of its capital stock for
the purpose of effecting voluntary withdrawals during that year. All such applications shall be dealt
with in the order in which they arefiledwith the board.
Whenever a member bank shall surrender its stock holdings in a Federal reserve bank, or shall be
ordered to do so by the Federal Reserve Board, under authority of law, all of its rights and privileges as a
member bank shall thereupon cease and determine, and after due provision has been made for any indebtedness due or to become due to the Federal reserve bank it shall be entitled to a refund of its cash paid
subscription with interest at the rate of one-half of one per centum per month from date of last dividend,
if earned, the amount refunded in no event to exceed the book value of the stock at that time, and shall
likewise be entitled to repayment of deposits and of any other balance due from the Federal reserve bank.
No applying bank shall *be admitted to membership in a Federal reserve bank unless it possesses a
paid-up unimpaired capital sufficient to entitle it to become a national banking association in the place
where it is situated under the provisions of the national bank act.
Banks becoming members of the Federal Reserve System under authority of this section shall be subject
to the provisions of this section and to those of this act which relate specifically to member banks, but
shall not be subject to examination under the provisions of the first two paragraphs of section fifty-two
hundred and forty of the Revised Statutes as amended by section twenty-one of this act. Subject to
the provisions of this act and to the regulations of the board made pursuant thereto, any bank becoming
a member of the Federal Reserve System shall retain its full charter and statutory rights as a State bank
or trust company, and may continue to exercise all corporate powers granted it by the State in winch it
was created, and shall be entitled to all privileges of member banks: Provided, however, That no Federal
reserve bank shall be permitted to discount for any State bank or trust company notes, drafts, or bills
of exchange of any one borrower who is liable for borrowed money to such State bank or trust company
in an amount greater than ten per centum of the capital and surplus of such State bank or trust company,
but the discount of bills of exchange drawn against actually existing value and the discount of commercial
or business paper actually owned by the person negotiating the same shall not be considered as borrowed
money within the meaning of this section. The Federal reserve bank, as a condition of the discount of
notes, drafts, and bills of exchange for such State bank or trust company, shall require a certificate or
guaranty to the effect that the borrower is not liable to such bank in excess of the amount provided by
this section, and will not be permitted to become liable in excess of this amount while such notes, drafts,
or bills of exchange are under discount with the Federal reserve bank.
It shall be unlawful for any officer, clerk, or agent of any bank admitted to membership under authority
of this section to certify any check drawn upon such bank unless the person or company drawing the check
has on deposit therewith at the time such check is certified an amount of money equal to the amount
specified in such check. Any check so certified by duly authorized officers shall be a good and valid
obligation against such bank, but the act of any such officer, clerk, or agent in violation of this section
may subject such bank to a forfeiture of its membership in the Federal Reserve System upon hearing by
the Federal Reserve Board.
REGULATIONS OF THE BOARD.
303
REGULATION I, SERIES OF 1920.
(Superseding Regulation I of 1917.)
INCREASE OR DECREASE OF CAPITAL STOCK OF FEDERAL RESERVE BANKS AND
CANCELLATION OF OLD AND ISSUE OF N E W STOCK CERTIFICATES.
I. Increase of capital stock.
1. New national banks.—Each newly organized national bank (including any
nonmember State bank which shall have converted into a national bank ]) shall
file with the Federal Reserve Bank of its district an application on F. R. B. Form 30,
made a part of this regulation, for an amount of capital stock of the Federal Reserve
Bank of its district equal to 6 per cent of the paid-up capital stock and surplus of
such national bank. When such application has been approved by the Federal
Reserve Agent and by the Federal Reserve Board, the applying national bank shall
make a payment to the Federal Reserve Bank of its district of one-half of the amount
of its subscription, i. e.. 3 per cent of the amount of its paid-up capital and surplus,
and upon receipt of this payment the appropriate certificate of stock shall be issued
by the Federal Reserve Bank. The remaining half of the subscription of the applying bank shall be subject to call when deemed necessary by the Federal Reserve
Board.
2. State banks becoming members.—Any State bank or trust company desiring to
become a member of the Federal Reserve System shall make application as provided
in Regulation H, and when such application has been approved by the Federal
Reserve Board and all requirements of Regulation H have been complied with the
Federal Reserve Bank shall issue an appropriate certificate of stock as provided in
Regulation H.
3. Increase of capital or surplus by member banks.—Whenever any member bank shall
increase the aggregate amount of its paid-up capital stock and surplus, it shall file
with the Federal Reserve Bank of which it is a member an application on F. R. B.
Form 56, made a part of this regulation, for an additional amount of the capital stock
of the Federal Reserve Bank of its district equal to 6 per cent of such increase. After
such application has been approved by the Federal Reserve Agent and by the Federal
Reserve Board, the applying member bank shall pay to the Federal Reserve Bank
of its district one-hall of the amount of its additional subscription, and when this
amount has been paid the appropriate certificate of stock shall be issued by the Federal
Reserve Bank. The remaining half of such additional subscription shall be subject
to call when deemed necessary by the Federal Reserve Board.
4. Consolidation of member banks.—Whenever two or more member banks consolidate and such consolidation results in the consolidated bank acquiring by operation
of law 2 the Federal Reserve Bank stock owned by the other consolidating bank or
banks, and which also results in the consolidated bank having an aggregate capital
and surplus in excess of the aggregate capital and surplus of the consolidating member
banks, such consolidated bank shall file an application for additional stock, as provided in the preceding paragraph.
1
Whenever any State member bank is converted into a national bank under section 5154 of the Revised
Statutes as amended by section 8 of the Federal Reserve Act, it may continue to hold as a national bank
its shares of Federal Reserve Bank stock previously held as a State bank, and need notfileany application
for Federal Reserve Bank stock, unless the aggregate amount of its capital and surplus is increased, in
which event it should file an application for additional stock, as provided in Paragraph III. The certificate of stock issued in the old name of the member bank, however, should be surrendered and cancelled,
and a new certificate should be issued in lieu thereof, in the new name of the member bank, as provided
in2the last paragraph of this regulation.
Section 5 of the Federal Reserve Act provides that " Shares of the capital stock of Federal Reserve
Banks owned by member banks shall not be transferred or hypothecated." This provision prevents
a transfer of Federal Reserve Bank stock by purchase, but does not prevent a transfer by operation of
law. When there is a merger of member banks involving the liquidation of one of such banks and the
purchasing of the assets of the 1 iquidating bank by the bank continuing in existence, it is necessary for
the liquidating bank to surrender its Federal Reserve Bank stock and for the purchasing bank to apply
for new stock. On the other hand, if member banks consolidate, under a statute which does not require
the liquidation of any of the consolidating banks, and the consolidated bank continues the corporate identity
of one of theconsolidatingbanks, and the assets and obligations of the other consolidating banks are transferred to the consolidated bank by operation of law, the consolidated bank becomes the owner of the Federal
Reserve Bank stock of the other consolidating banks as soon as the consolidation takes effect and such stock
technically need not be surrendered. The certificates of stock issued in the names of the consolidating
banks, however, should be surrendered and cancelled, and a new certificate should be issued in lieu thereof,
in the new name of the consolidated bank, as provided in the last paragraph of this regulation. A consolidation of national banks under the Act of Congress entitled "An Act to provide for the consolidation
of national banking associations," approved November 7, 1918, meets all of these conditions.
304
ANNUAL REPORT FEDERAL RESERVE BOARD.
5. Certifying increases of Federal Reserve Bank stock.—Whenever the capital stock of
any Federal Reserve Bank shall be increased the board of directors of such Federal
Reserve Bank shall certify such increase to the Comptroller of the Currency on F. R.
B. Form 58, which is made a part of this regulation. Such certifications shall be made
quarterly as of the last days of December, March, June, and September of each year.
A duplicate copy of each certificate shall be forwarded to the Federal Reserve Board.
I I . Decrease of capital stock.
1. Reduction of capital or surplus by member bank.—Whenever a member bank reduces
the aggregate amount of its paid-up capital stock and surplus and, in the case of reduction of the paid-up capital of a national bank, such reduction has been approved by
the Comptroller of the Currency and by the Federal Reserve Board in accordance
with the provisions of section 28 of the Federal Reserve Act, it shall file with the
Federal Reserve Bank of which it is a member an application for the surrender and
cancellation of stock on F. R. B. Form 60, which is made a part of this regulation.
When this application has been approved by the Federal Reserve Agent and the Federal Reserve Board, the Federal Reserve Bank shall accept and cancel the stock which
the applying bank is entitled to surrender and shall refund to the member bank the
proportionate amount due such bank on account of the stock canceled.
2. Insolvency ofmembei' bank.—Whenever a member bank shall be declared insolvent
and a receiver appointed by the proper authorities, such receiver shall file with the
Federal Reserve Bank of which the insolvent bank is a member an application on
F. R. B. Form 87, which is made a part of this regulation, for the surrender and cancellation of the stock held by such insolvent member bank, and for the refund of all
balances due to it. t Upon approval of this application by the Federal Reserve Agent
and the Federal Reserve Board, the Federal Reserve Bank shall accept and cancel
the stock surrendered, and shall adjust accounts between the member bank and the
Federal Reserve Bank by applying to any indebtedness of the insolvent member
bank to such Federal Reserve Bank all cash-paid subscriptions made by it on the
stock canceled with one-half of 1 per centum per month from the period of last dividend
if earned, not to exceed the book value thereof, and the balance, if any, shall be paid
to the duly authorized receiver of such insolvent member bank.
3. Voluntary liquidation of member bank.—Whenever a member bank goes into
voluntary liquidation and a liquidating agent is appointed, such agent shall file with
the Federal Reserve Bank of which it is a member an application on F. R. B. Form 86,
which is made a part of this regulation, for the surrender and cancellation of the stock
held by and for the refund of all balances due to such liquidating member bank. Upon
approval of this application by the Federal Reserve Agent and the Federal Reserve
Board the Federal Reserve Bank shall accept and cancel the stock surrendered, and
shall adjust accounts between the liquidating member bank and the Federal Reserve
Bank by applying to the indebtedness of the liquidating member bank to such Federal
Reserve Bank all cash-paid subscriptions made by it on the stock canceled with onehalf of 1 per centum per month from the period of last dividend, if earned, not to exceed
the book value thereof, and the balance, if any, shall be paid to the duly authorized
liquidating agent of such liquidating member bank.
4. Consolidation of member bank.—Whenever there is a consolidation of two or more
member banks which results in the consolidated bank acquiring by operation of law
(see note 2 on p. 21) the Federal Reserve Bank stock owned by the other consolidating
banks, and which also results in the consolidated bank having a paid-up capital and
surplus less than the aggregate paid-up capital and surplus of the consolidating member
banks, the consolidated bank shall file with the Federal Reserve Bank of which it is a
member an application for the surrender and cancellation of stock on F. R. B. Form
60a, which is made a part of this regulation . Upon the approval of this application by
the Federal Reserve Agent and the Federal Reserve Board, the Federal Reserve Bank
shall accept and cancel the stock which the applying bank is entitled to surrender,
and shall refund to the applying bank the proportionate amount due such bank on
account of the stock canceled.
5. Certifying reductions of Federal Reserve Bank stock.—All reductions of the capital
stock of a Federal Reserve Bank shall, in accordance with the provisions of section 6 of
the Federal Reserve Act, be certified to the Comptroller of the Currency by the board
of directors of such Federal Reserve Bank on F. R. B. Form 59, which is made a part
of this regulation. Such certifications shall be made quarterly as of the last day
of December, March, June, and September of each year. A duplicate copy of each
certificate shall be forwarded to the Federal Reserve Board.
REGULATIONS OF THE BOARD.
305
III Cancellation of old and issue of new stock certificates.
Whenever a member bank changes its name or, by consolidation with another member
bank acquires by operation of law (see note 2 on p. 306) the Federal Reserve Bank stock
previously held by such other member bank, it shall surrender to the Federal Reserve
Bank the certificate of Federal Reserve Bank stock which was issued to it under its old
name, or which was issued to such other member bank. The certificate so surrendered
shall be indorsed by the member bank surrendering it or by the member bank to
which it was originally issued and shall be accompanied by proper proof of the change
of name or consolidation. Upon receipt of such certificate of stock so indorsed, together
with such proof, the Federal Reserve Bank shall cancel the certificate so surrendered,
and shall issue in lieu thereof to and in the name of the member bank surrendering it a
new certificate for the number of shares represented by the certificate so surrendered,
or if the member bank is entitled to surrender some of the stock which is represented by
the surrendered certificate, and an application for the surrender and cancellation of
such stock is at the same time made in accordance with this regulation, the new certificate shall be for the number of shares represented by the surrendered certificate less
the number of shares canceled pursuant to such application. All cases where certificates of stock are surrendered and new certificates issued in lieu thereof and in
a different name shall be reported to the Federal Reserve Board by the Federal Reserve Agent.
REGULATION J, SERIES OF 1920.
(Superseding Regulation J of 1917.)
CHECK CLEARING AND COLLECTION.
Section 16 of the Federal Reserve Act authorizes the Federal Reserve Board to
require each Federal Reserve Bank to exercise the function of a clearing house for its
member banks, and section 13 of the Federal Reserve Act, as amended by the act
approved June 21, 1917, authorizes each Federal Reserve Bank to receive from any
nonmember bank or trust company, solely for the purposes of exchange or of collection,
deposits of current funds in lawful money, national-bank notes, Federal Reserve notes,
checks, and drafts payable upon presentation, or maturing notes and bills, pro Added
such nonmember bank or trust company maintains with its Federal Reserve Bank
a balance sufficient to offset the items in transit held for its account by the Federal
Reserve Bank.
In pursuance of the authority vested in it under these provisions of law, the Federal
Reserve Board, desiring to afford both to the public and to the various banks of the
country a direct, expeditions, and economical system of check collection and settlement of balances, has arranged to have each Federal Reserve Bank exercise the functions of a clearing house for such of its member banks as desire to avail themselves of
its privileges and for such nonmember State banks and trust companies as may maintain with the Federal Reserve Bank balances sufficient to qualify them under the provisions of section 13 to send items to Federal Reserve Banks for purposes of exchange
or of collection. Such nonmember State banks and trust companies will hereinafter
be referred to in this regulation as nonmember clearing banks.
Each Federal Reserve Bank shall exercise the functions of a clearing house under
the following general terms and conditions:
(1) Each Federal Reserve Bank will receive at par from its member banks and from
nonmember clearing banks in its district, checks l drawn on all member and nonmember clearing banks and on all other nonmember banks which agree to remit at
par through the Federal Reserve Bank of their district.
(2) Each Federal Reserve Bank will receive at par from other Federal Reserve
Banks, and from all member and nonmember clearing banks, regardless of their location, for the credit of their accounts with their respective Federal Reserve Banks,
checks drawn upon all member and nonmember clearing banks of its district and upon
all other nonmember banks of its district whose checks are collected at par by the
Federal Reserve Bank.
i A cheek is generally denned as a draft or order upon a bank or banking house, purporting to be drawn
upon a deposit of funds, for the payment at all events of a certain sum of money to a certain person therein,
named, or to him or his order, or to bearer, and payable instantly on demand"
806
ANNUAL REPORT FEDERAL RESERVE BOARD.
(3) Immediate credit entry upon receipt subject to final payment will be made for
all such items upon the books of the Federal Reserve Bank at full face value, but the
proceeds will not be counted as part of the minimum reserve nor become available to
meet checks drawn until such time as may be specified in the appropriate time schedule
referred to in subdivision 7.
(4) Checks received by a Federal Reserve Bank on its member or nonmember
clearing banks will be forwarded direct to such banks and will not be charged to their
accounts until sufficient time has elapsed within which to receive advice of payment,
as shown by the appropriate time schedule referred to in subdivision 7.
(5) Under this plan each Federal Reserve Bank will receive at par from its member
and nonmember clearing banks checks on all member and nonmember clearing banks
and on all other nonmember banks whose checks can be collected at par by any Federal
Reserve Bank. Member and nonmember clearing banks will be required by the
Federal Reserve Board to provide funds to cover at par all checks received from or for
the account of their Federal Reserve Banks: Provided, however, That a member or
nonmember clearing bank may ship currency or specie from its own vaults at the exexpense of its Federal Reserve Bank to cover any deficiency which may arise because
of and only in the case of inability to provide
items to offset checks received from or
for the account of its Federal Reserve Bank.2
(6) Section 19 of the Federal Reserve Act provides that—
The required balance carried by a member bank with a Federal Reserve Bank may, under the regulations
and subject to such penalties as may be prescribed by the Federal Reserve Board/be checked against and
withdrawn by such member bank for the purpose of meeting existing liabilities: Provided, however, That
no bank shall at any time make new loans or shall pay any dividends unless and until the total balance
required by law is fully restored.
Items can not be counted as part of the minimum reserve balance to be carried by a
member bank with its Federal Reserve Bank until such time as may be specified in
the appropriate time schedule referred to in subdivision 7. Therefore, should a member bank draw against items before such time, the draft would be charged against its
reserve balance if such balance were sufficient in amount to pay it; but any resulting
impairment of reserve balances would be subject to all the penalties provided by the
Act.
Inasmuch as it is essential that the law in respect to the maintenance by member
banks of the required minimum reserve balance shall be strictly compiled with, the
Federal Reserve Board, under authority vested in it by section 19 of the Act, has prescribed as the basic penalty for any deficiency in reserves a sum equivalent to an
interest charge on the amount of the deficiency of 2 per cent per annum above the
ninety-day discount rate of the Federal Reserve Bank of the district in which the member bank is located, and has announced that it will prescribe for any Federal Reserve
district, upon the application of the Federal Reserve Bank of that district, as an
additional progressive penalty for any subsequent deficiency by the same member
bank during the same calendar year a sum equivalent to an interest charge on the
amount of the subsequent deficiency at a rate increasing one-half of 1 per cent for each
such subsequent deficiency.
(7) Each Federal Reserve Bank will determine by analysis the amounts of uncollected funds appearing on its books to the credit of each member bank. Such analysis
will show the true status of the reserve held by the Federal Reserve Bank for each
member bank and will enable it to apply the penalty for impairment of reserve.
Each Federal Reserve Bank will publish time schedules showing the time at which
any item sent to it will be counted as reserve and become available to meet any checks
drawn.
(8) In handling items for member and nonmember clearing banks, a Federal Reserve
Bank will act as agent only. The Board will require that each member and nonmember clearing bank authorize its Federal Reserve Bank to send checks for collection
to banks on which checks sue drawn, and, except for negligence, such Federal Reserve
Bank will assume no liability. Any further requirements that the Board may deem
necessary will be set forth by the Federal Reserve Banks in their letters of instruction
to their member and nonmember clearing banks. Each Federal Reserve Bank will
also promulgate rules and regulations governing the details of its operations as a clearing house, such rules and regulations to be binding upon all member and nonmember
banks which are clearing through the Federal Reserve Bank.
2
In accordance with instructions issued by the Federal Reserve Board on April 24, 1917, the various
Federal Reserve Banks have issued circulars setting forth the conditions under which their respective
member banks may draw drafts on their Reserve Bank accounts payable with or through any other Federal
Reserve Bank.
REGULATIONS OF THE BOARD.
307
REGULATION K, SERIES OF 1920.
(Superseding Regulation K of 1920, issued in March, 1920.)
BANKING CORPORATIONS AUTHORIZED TO DO FOREIGN BANKING BUSINESS UNDER
THE TERMS OF SECTION 25 (A) OF THE FEDERAL RESERVE ACT.
I. Organization.
Any number of natural persons, not less in any case than five, may form a Corporation 1 under the provisions of section 25 (a) 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.
II. Articles of association.
Any person desiring to organize a corporation for any of the purposes defined in
section 25 (a) shall enter into articles of association (see F. R. B. Form 151 which is
suggested as a satisfactory form of articles of association) which shall specify in general
terms the objects for which the Corporation is formed, and may contain any other
provisions not inconsistent with law which the Corporation may see fit to adopt for
the regulation of its business and the conduct of its affairs. The articles of association
shall be signed by each person intending to participate in the organization of the
Corporation and when signed shall be forwarded to the Federal Reserve Board in
whose office they shall be filed.
III. Organization certificate.
All of the persons signing the articles of association shall under their hands make
an organization certificate on F. R. B. Form 152, which is made a part of this regulation, and which shall state specifically:
First. The name assumed by the Corporation.
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 it
shall be divided.
Fifth. The names and places of business or residences of persons executing the
organization 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 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. Thereafter the certificate shall be forwarded
to the Federal Keserve Board to be filed in its office.
IV. Title.
Inasmuch as the name of the Corporation is subject to the approval of the Federal
Reserve Board, a preliminary application for that approval should be filed with the
Federal Reserve Board on F. R. B. Form 150, which is made a part of this regulation.
This application should state merely that the organization of a Corporation under the
proposed name is contemplated and may request the approval of that name and its
reservation for a period of 30 days. No Corporation which issues its own bonds,
debentures, or other such obligations will be permitted to have the word "bank" as
a part of its title. No Corporation which has the word "Federal" in its title will be
permitted also to have the word "bank" as a part of its title. So far as possible the
title of the Corporation should indicate the nature or reason of the business contemplated and should in no case resemble the name of any other corporation to the extent
that it might result in misleading or deceiving the public as to its identity, purpose,
connections, or affiliations.
1
Whenever these regulations refer to a Corporation spelled with a capital C, they relate to a corporation
ganized under section 25 (a) of the "Federal Reserve Act.
orga:
308
ANNUAL REPORT FEDERAL RESERVE BOARD.
V. Authority to commence business.
After the articles of association and organization certificate have been made and
filed with the Federal Reserve Board, and after they have been approved by the
Federal Reserve Board and a preliminary permit to begin business has been issued
by the Federal Reserve Board, the association shall become and be a body corporate,
but none of its powers except such as are incidental and preliminary to its organization shall be exercised until it has been formally authorized by the Federal Reserve
Board by a final permit generally to commence business.
Before the Federal Reserve Board will issue its final permit to commence business,
the president or cashier, together with at least three of the directors, must certify
(a)
that each director elected is a citizen of the United States; (6) that a majority §of the
shares of stock is 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 by firms or companies the controlling interest in which
is owned by citizens of the United States; and (c) that of the authorized capital stock
specified in the articles of association at least 25 per cent has been paid in in cash
and that each shareholder has individually paid in in cash at least 25 per cent of his
stock subscription. Thereafter the cashier shall certify to the payment of the remaining installments as and when each is paid in, in accordance with law.
VI. Capital stock.
No Corporation may be organized under the terms of section 25 (a) with a capital
stock of less than $2,000,000. The par value of each share of stock shall be specified
in the articles of association, and no Corporation will be permitted to issue stock of
no par value. If there is more than one class of stock, the name and amount of each
class and the obligations, rights, and privileges attaching thereto shall be set forth
fully in the articles of association. Each class of stock shall be so named as to indicate
to the investor as nearly as possible what is its character and to put him on notice of
any unusual attributes.
VII. Transfers of stock.
Section 25 (a) provides in part that—
A majority of the shares of the capital stock of any such corporation shall at all times be held and
owned by the 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.
In order to insure compliance at all times with the requirements of this provisicn
after the organization of the Corporation, shares of stock shall be issuable and trans
ferable only on the books of the Corporation. Every application for the issue or
transfer of stock shall be accompanied by an affidavit of the party to whom it is desired
to issue or transfer stock, or by his or its duly authorized agent, stating—
In the case of an individual.—(a) Whether he is or is not a citizen of the United States
and if a citizen of the United States, whether he is a natural born citizen or a citizen
by naturalization, and if naturalized, whether he remains for any purpose in the allegiance of any foreign sovereign or state; (b) Whether there is or is not any arrangement
under which he is to hold the shares or any of the shares which he desires to have issued
or transferred to him, in trust for or in any way under the control of any foreign state
or any foreigner, foreign corporation, or any corporation under foreign control, and if
so, the nature thereof.
In the case of a corporation.—(a) Whether such corporation is or is not chartered
under the laws of the United States or of a State of the United States. If it is not, no
further declaration is necessary, but if it is, it must also be stated (6) whether the controlling interest in such corporation is or is not owned by citizens of the United States,
and (c) whether there is or is not any arrangement under which such corporation will
hold the shares or any of the shares if issued or transferred to such corporation, in trust
for or in any way under the control of any foreign state or any foreigner or foreign corporation or any corporation under foreign control, and if so, the nature thereof.
In the case of a firm or company.—(a) Whether the controlling interest in such firm.
or company is or is not owned by citizens of the United States and, if so, (b) whether
there is or is not any arrangement under which such firm or company will hold the
shares or any of the shares if issued or transferred to such firm or company in trust for or
in any way under the control of any foreign state or any foreigner or foreign corporation or any corporation under foreign control and if so, the nature thereof.
The board of directors of the Corporation, whether acting directly or through an
agent, may, before making any issue or transfer of stock, require such further evidence
as in their discretion they may think necessary in order to determine whether or not
REGULATIONS OF THE BOARD.
309
the issue or transfer of the stock would result in a violation" of the law. No issue or
transfer of stock which would cause 50 per cent or more of the total amount of stock
issued or outstanding to be held contrary to the provisions of the law or these regulations shall be made upon the books of the Corporation. The decision of the board of
directors in each case shall be final and conclusive and not subject to any question by
any person, firm, or corporation on any ground whatsoever.
If at any time by reason of the fact that the holder of any shares of the Corporation
ceases to be a citizen of the United States, or, in the opinion of the board of directors,
becomes subject to the control of any foreign state or foreigner or foreign corporation
or corporation under foreign control, 50 per cent or more of the total amount of capital
stock issued or outstanding is held contrary to the provisions of the law or these regulations, the board of directors may, when apprised of that fact, forthwith serve on the
holder of the shares in question a notice in writing requiring such holder within two
months to transfer such shares to a citizen of the United States, or to a firm, company,
or corporation approved by the board of directors as an eligible stockholder. When
such notice has been given by the board of directors the shares of stock so held shall
cease to confer any vote until they have been transferred as required above and if on
the expiration of two months after such notice the shares shall not have been so transferred, the shares shall be forfeited to the Corporation.
The board of directors shall prescribe in the by-laws of the Corporation appropriate
regulations for the registration of the shares of stock in accordance with the terms of
the law and these regulations. The by-laws must also provide that the certificates of
stock issued by the Corporation shall contain provisions sufficient to put the holder on
notice of the terms of the law and the regulations of the Federal Reserve Board defining
the limitations upon the rights of transfer.
VIII. Operations in the United States.
No Corporation shall carry on any part of its business in the United States except
such as shall be incidental to its international or foreign business. Agencies may be
established in the United States with the approval of the Federal Reserve Board for
specific purposes, but not generally to carry on the business of the Corporation.
IX. Investments in the stock of other corporations.
It is contemplated by the law that a Corporation shall conduct its business
abroad either directly or indirectly through the ownership or control of corporations,
and it is accordingly provided that a Corporation may invest in the stock, or other certificates of ownership, of any other corporation organized—
(a) Under the provisions of section 25 (a) of the Federal Reserve Act;
(b) Under the laws of any foreign country or a colony or dependency thereof;
(c) Under the laws of any State, dependency, or insular possession of the
United States;
provided, first, that such other corporation is not engaged in the general business of
buying or selling goods, wares, merchandise, or commodities in the United States; and
second, that it is not transacting any business in the United States except such as is
incidental to its international or foreign business.
Except with the approval of the Federal Reserve Board, no Corporation shall invest
an amount in excess of 15 per cent of its capital and surplus in the stock of any corporation engaged in the business of banking, or an amount in excess of 10 per cent of its
capital and surplus in the stock of any other kind of corporation.
No Corporation shall purchase any stock in any other corporation organized under the
terms of section 25 (a) 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. This restriction,
however, does not apply to corporations organized under foreign laws.
X. Branches.
No Corporation shall establish any branches except with the approval of the Federal Reserve Board, and in no case shall any branch be established in the United
States.
XI. Issue of debentures, bonds, and promissory notes.
Approval of the Federal Reserve Board.—No Corporation shall make any public or
private issue of its debentures, bonds, notes, or other such obligations without the
approval of the Federal Reserve Board, but this restriction shall not apply to notes
issued by the Corporation in borrowing from banks or bankers for temporary purposes
not to exceed one year. The approval of the Federal Reserve Board will be based
310
ANNUAL REPORT FEDERAL RESERVE BOARD.
solely upon the right of the Corporation to make the issue under the terms of this regulation and shall not be understood in any way to imply that the Federal Reserve
Board has approved or passed upon the merits of such obligations as an investment.
The Federal Reserve Board will consider the general character and scope of the business of the Corporation in determining the amount of debentures, bonds, notes, or
other such obligations of the Corporation which may be issued by it.
Application.—Every application for the approval of any such issue by a Corporation
shall be accompanuied by (1) a statement of the condition of the Corporation in such
form and as of such date as the Federal Reserve Board may require; (2) a detailed
list of the securities by which it is proposed to secure such issue, stating their maturities, indorsements, guaranties, or collateral, if any, and in general terms the nature
of the transaction or transactions upon which they were based; and (3) such other
data as the Federal Reserve Board may from time to time require.
Advertisements.—No circular, letter, or other document advertising the issue of the
obligations of a Corporation shall state or contain any reference to the fact that the
Federal Reserve Board has granted its approval of the issue to which the advertisement relates. This requirement will be enforced strictly in order that there may be
no possibility of the public's misconstruing such a reference to be an approval by
the Federal Reserve Board of the merits or desirability of the obligations as an investment.
XII. Sale offoreign securities.
Approval of the Federal Reserve Board.—No Corporation shall offer for sale any foreign
securities with its indorsement or guaranty, except with the approval of the Federal
Reserve Board, but such approval will be based solely upon the right of the Corporation to make such a sale under the terms of this regulation and shall not be understood in any way to imply that the Federal Reserve Board has approved or passed
upon the merits of such securities as an investment.
Application.—Every application for the approval of such sale shall be accompanied
by a statement of the character and amount of the securities proposed to be sold, their
indorsements, guaranties, or collateral, if any, and such other data as the Federal
Reserve Board may from time to time require.
Advertisements.—No circular, letter, or other document advertising the sale of foreign securities by a Corporation with its indorsement or guaranty shall state or contain
any reference to the fact that the Federal Reserve Board has granted its approval of
the sale of the securities to which the advertisement relates.
XIII. Acceptances.
Kinds.—Any Corporation may accept (1) drafts and bills of exchange drawn upon
it which grow out of transactions involving the importation or exportation of goods,
and (2) drafts and bills of exchange which are drawn by banks or bankers located 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 such
countries, dependencies, and possessions, provided, however, that, except with the
approval of the Federal Reserve Board and subject to such limitations as it may
prescribe, no Corporation shall exercise its power to accept drafts or bills of exchange
if at the time such drafts or bills are presented for acceptance it has outstanding any
debentures, bonds, notes, or other such obligations issued by it.
Maturity.—Except with the approval of the Federal Reserve Board, no Corporation
shall accept any draft or bill of exchange which grows out of a transaction involving
the importation or exportation of goods with a maturity in excess of six months, or
shall accept any draft or bill of exchange drawn for the purpose of furnishing dollar
exchange with a maturity in excess of three months.
Limitations.—(1) Individual drawers: No acceptances shall be made for the account of any one drawer in an amount aggregating at any time in excess of 10 per
cent of the subscribed capital and surplus of the Corporation, unless the transaction
be fully secured or represents an exportation or importation of commodities and is
guaranteed by a bank or banker of undoubted solvency. (2) Aggregates: Whenever
the aggregate of acceptances outstanding at any time (a) exceeds the amount of the
subscribed capital and surplus, 50 per cent of all the acceptances in excess of the amount
shall be fully secured; or (b) exceeds twice the amount of the subscribed capital and
surplus, all the acceptances outstanding in excess of such amount shall be full
secured. (The Corporation shall elect whichever requirement (a) or (b) calls for
the smaller amount of secured acceptances.) In no event shall any Corporation have
outstanding at any one time acceptances drawn for the purpose of furnishing dollar
exchange in an amount aggregating more than 50 per cent of its subscribed capital
and surplus.
REGULATIONS OF THE BOARD.
311
Reserves.—Against all acceptances outstanding which mature in 30 days or less a
reserve of at least 15 per cent shall be maintained, and against all acceptances outstanding which mature in more than 30 days a reserve of at laest 3 per cent shall be
maintained. Reserves against acceptances must be in liquid assets of any or all of
the following kinds: (1) cash; (2) balances with other banks; (3) bankers' acceptances; and (4) such securities as the Federal Reserve Board may from time to time
permit.
XIV. Deposits.
In the United States.—No Corporation shall receive in the United States any deposits except such as are incidental to or for the purpose of carrying out transactions
in foreign countries or dependencies of the United States where the Corporation has
established agencies, branches, correspondents, or where it operates through the
ownership or control of subsidiary corporations. Deposits of this character may be
made by individuals, firms, banks, or other corporations, whether foreign or domestic,
and may be time deposits or on demand.
Outside the United States.—Outside the United States a Corporation may receive
deposits of any kind from individuals, firms, banks, or other corporations, provided,
however, that if such corporation has any of its bonds, debentures, or other such
obligations outstanding it may receive abroad only such deposits as are incidental
to the conduct of its exchange, discount, or loan operations.
Reserves.—Against all deposits received in the United States a reserve of not less
than 13 per cent must be maintained. This reserve may consist of cash in vault, a
balance with the Federal Reserve Bank of the district in which the head office of the
Corporation is located, or a balance with any member bank. Against all deposits
received abroad the Corporation shall maintain such reserves as may be required by
local laws and by the dictates of sound business judgment and banking principles.
XV. General limitations and restrictions.
Liabilities of one borrower.—The total liabilities to a Corporation of any person, company, firm, or corporation 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 cent of the amount of its subscribed capital and surplus, except with the approval
of the Federal Reserve Board: Provided, however, That the discount of bills of exchange drawn in good faith against actually existing values and the discount of commercial or business paper actually owned by the person negotiating the same shall
not be considered as money borrowed within the meaning of this paragraph. The
liability of a customer on account of an acceptance made by the Corporation for his
account is not a liability for money%orrowed within the meaning of this paragraph
unless and until he fails to place the Corporation in funds to cover the payment of the
acceptance at maturity or unless the Corporation itself holds the acceptance.
Aggregate liabilities of the Corporation.—The aggregate of the Corporation's liabilities
outstanding on account of acceptances, average domestic and foreign deposits, debentures, bonds, notes, guaranties, indorsements, and other such obligations shall not
exceed at any one time ten times the amount of the Corporation's subscribed capital
and surplus except with the approval of the Federal Reserve Board. In determining
the amount of the liabilities within the meaning of this paragraph, indorsements of
bills of exchange having not more than six months to run, drawn and accepted by
others than the Corporation, shall not be included.
Operations abroad.—Except as otherwise provided in the law and these regulations,
a Corporation may exercise abroad not only the powers specifically set forth in the law
but also such incidental powers 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 in which it shall transact business. In the
exercise of any of these powers abroad a Corporation must be guided by the laws of
the country in which it is operating and by sound business judgment and banking
principles.
XVI. Management.
The directors, officers, or employees of a Corporation shall exercise their rights
and perform their duties as directors, officers, or employees, with due regard to both
the letter and the spirit of the law and these regulations. For the purpose of these
regulations the Corporation shall, of course, be responsible for all acts of omission or
commission of any of its directors, officers, employees, or representatives in the conduct of their official duties. The character of the management of a Corporation and
its general attitude toward the purpose and spirit of the law and these regulations
will be considered by the Federal Reserve Board in acting upon any application
made under the terms of these regulations.
45525°—21
21
312
ANNUAL REPORT FEDERAL RESERVE BOARD.
XVII. Reports and examinations.
Reports.—Each. Corporation shall make at least two reports annually to the Federal
Reserve Board at such times and in such form as it may require.
Examinations.—Each Corporation shall be examined at least once a year by examiners appointed by the Federal Reserve Board. The cost of examinations shall be
paid by the Corporation examined.
XVIII. Amendments to regulations.
These regulations are subject to amendment by the Federal Reserve Board from
time to time, provided, however, that no such amendment shall prejudice obligations
undertaken in good faith under regulations in effect at the time they were assumed. -
REGULATION L, SERIES OF 1920.
INTERLOCKING BANK DIRECTORATES UNDER THE CLAYTON ACT.
I. Definitions
Within the meaning of this regulation—
The term "member bank" shall apply to any national bank and any State bank or
trust company which is a member of the Federal Reserve System.
The term "national bank" shall be construed to apply not only to national banking
associations, but also to all banks and trust companies doing business in the District
of Columbia, regardless of the sources of their charter.
The term "resources" shall be construed to mean an amount equal to the sum of
the deposits, capital, surplus, and undivided profits.
The term "State bank" shall include any bank, banking association, or trust company incorporated under State law.
The term "private banker" shall apply to any unincorporated individual engaging
in one or more phases of the banking business as that term is generally understood and.
to any member of an unincorporated firm engaging in such business.
The term "Edge Act" shall mean section 25 (a) of the Federal Reserve Act, as
amended December 24, 1919.
The term "Edge Corporation " shall mean any corporation organized under the provisions of the Edge Act.
The term "city of over 200,000 inhabitants" includes any city, incorporated town,,
or village of more than 200,000 inhabitants, as snown by the last preceding decennial
census of the United States. Any bank located anywhere within the corporate limits
of such city is located in a city of over 200,000 inhabitants within the meaning of the
Clayton Act, even though it is located in a suburb or an outlying district at some
distance from the principal part of the city.
II. Prohibitions of Clayton Act.
Under sections 8 of the Clayton Antitrust Act—
(1) No person who is a director or other officer or employee of a national bank or
Edge Corporation having resources aggregating more than $5,000,000 can legally serve
at the same time as director, officer, or employee of any other national bank or Edge
Corporation, regardless of its location.
(2) No person who is a director in a State bank or trust company having resources
aggregating more than $5,000,000 or who is a private banker having resources aggregating more than $5,000,000 can legally serve at the same time as director of any
national bank or Edge Corporation, regardless of its location.
(3) No person can legally be a director, officer, or employee of a national bank or
Edge Corporation located in a city of more than 200,000 inhabitants who is at the same
time a private banker in the same city or a director, officer or employee of any other
bank (State or national) located in the same city, regardless of the size of such bank.
The eligibility of a director, officer, or employee under the foregoing provisions is
determined by the average amount of deposits, capital, surplus, and undivided
profits as shown in the official statements of such bank, banking association, or trust
company filed, as provided by law, during the fiscal year next preceding the date
set for the annual election of directors, and when a director, officer, or employee
has been elected or selected in accordance with the provisions of the Clayton Act, it
is lawful for him to continue as such for one year thereafter under said election or
employment.
REGULATIONS OF THE BOARD.
313
When any person elected or chosen as a director, officer, or employee of any bank
is eligible at the time of his election or selection to act for such bank in such capacity,
his eligibility to act in such capacity is not affected by reason of any change in the
affairs of such bank from whatsoever Gause until the expiration of one year from
the date of his election or employment.
III. Exceptions.
The provisions of section 8 of the Clayton Act—
(1) Do not apply to mutual savings banks not having a capital stock represented by
shares.
(2) Do not prohibit a person from being at the same time a director, officer, or
employee of a national bank or Edge Corporation and not more than one other national
bank, Edge Corporation, State bank, or trust company, where the entire capital stock
of one is owned by the stockholders of the other.
(3) Do not prohibit a person from being at the same time a class A director of a
Federal Reserve Bank and also an officer or director, or both an officer and a director,
in one member bank.
(4) Do not prohibit a person who is serving as director of a national bank or Edge
Corporation, even though it has resources aggregating over $5,000,000, from serving
at the same time as director of any number of State banks and trust companies, provided such State institutions are not located in the same city of over 200,000 inhabitants as the national bank or Edge Corporation, and do not have resources aggregating
in the case of any one bank more than $5,000,000.
(5) Do not prohibit a person from serving at the same time as director, officer, or
employee of any number of national banks, provided no two of them are located in
the same city of over 200,000 inhabitants, and no one of them has resources aggregating over $5,000,000.
(6) Do not prohibit a person who is not a director, officer, or employee of any national
bank or Edge Corporation from serving at the same time as officer, director, or employee
of any number of State banks or trust companies, regardless of their locations and
resources.
(7) Do not prohibit a person who is an officer or employee, but not a director, of a
State bank from serving as director, officer, or employee of a national bank or Edge
Corporation, even though such State bank has resources aggregating over $5,000,000,
provided both banks are not located in the same city of over 200,000 inhabitants.
(8) Do not prohibit a person who is an officer or employee, but not a director, of a
national bank or Edge Corporation from serving at the same time as director, officer,
or employee of a State bank, even though such State bank has resources aggregating
over $5,000,000, provided both banks are not located in the same city of over 200,000
inhabitants.
(9) Do not apply to persons who have obtained the consent or approval of the
Federal Reserve Board under the provisions of the Kern amendment, section 25 of the
Federal Reserve Act, or the Edge Act, as hereinafter provided.
Exceptions cumulative.—The above exceptions are cumulative.
IV. Permission of the Federal Reserve Board under Kern
amendment.
By the Kern amendment, approved May 15, 1916, as amended May 26, 1920, the
Clayton Act was amended so as to authorize the Federal Reserve Board to permit any
private banker or any officer, director, or employee of any member bank or class A
director of a Federal Reserve Bank to serve as director, officer, or employee of not
more than two other banks, banking associations, or trust companies coming within
the prohibitions of the Clayton Act, provided such other banks are not in substantial
competition with such private banker or member bank.
Substantial competition.—If the institutions involved are not in substantial competition, the Board is authorized, in its discretion, to grant, withhold, or revoke such
consent; but if they are in substantial competition, the Board has no discretion in
the matter, and must refuse such consent.
When obtained.—Inasmuch as the Kern amendment excepts from the prohibitions
of the Clayton Act only those "who shall first procure the consent of the Federal
Reserve Board," it is a violation of the law to serve two or more institutions in the
prohibited classes before such consent has been obtained. Such consent should be
obtained, therefore, before becoming an officer, director, or employee of more than
one bank in the prohibited classes. Such consent may be procured before the person
applying therefor has been elected as a class A director of a Federal Reserve Bank,
or as a director of any member bank.
314
ANNUAL REPORT FEDERAL RESERVE BOARD.
Applications for permission.—A person wishing to obtain the permission of the
Federal Reserve Board to serve banks coming within the prohibitions of the Clayton
Act should:
(1) Make formal application on F. R. B. Form 94, or, if a private banker, on F. R. B.
Form 94d. Each of these forms is made a part of this regulation.
(2) Obtain from each of the banks involved a statement on F. R. B. Form 94a,
which is made a part of this regulation, showing the character of its business, together
with a copy of its last published statement of condition, and, if a private banker, make
a statement on F. R. B. Form 94a showing the character of his or his firm's business.
(3) Forward all these papers to the Federal Reserve Agent of his district, who
will attach his recommendation on F. R. B. Form 94b, which is made apart of.this
regulation, and forward them in due course to the Federal Reserve Board.
Approval or disapproval.—As soon as an application is acted upon by the Board,
the applicant will be advised of the action taken.
If the Board, approves the application, a formal certificate of permission to serve
on the banks involved will be issued to the applicant.
Rehearing.—If the Board decides that the banks are in substantial competition,
and that it can not approve the application, it will, upon petition of the applicant,
reconsider its decision and afford him every opportunity to present any additional
facts or arguments bearing on the subject.
Effect of permits.—Permission once granted is continuing until revoked and need
not be renewed.
Revocation.—All permits, however, are subject to revocation at any time in the
discretion of the Federal Reserve Board. The issuance of a permit to any person
shall have the effect of revoking any or all permits which may have been issued
previously to that person.
V. Permits under section 25 of the Federal Reserve Act.
With the approval of the Federal Reserve Board, any director, officer, or employee
of a member bank which has invested in the stock of any corporation principally engaged in international or foreign banking or financial operations or banking in a dependency or insular possession of the United States, under the provisions of section 25
of the Federal Reserve Act, may serve as director, officer, or employee of any such
foreign bank or financial corporation.
Applications for approval.—The approval of the Federal Reserve Board for such
interlocking directorates may be obtained through an informal application in the form
of a letter addressed to the Federal Reserve Board either by the officer, director, or
employee involved, or in his behalf by one of the banks which he is serving. Such
application should be sent directly to the Federal Reserve Board.
VI. Permits to serve Edge corporations.
With the approval of the Federal Reserve Board—
(1) Any officer, director, or employee of any member bank may serve at the same
time as director, officer, or employee of any Edge Corporation in whose capital stock
the member bank shall have invested.
(2) Any officer, director, or employee of any Edge Corporation may serve at the same
time as officer, director, or employee of any other corporation in whose capital stock
such Edge Corporation shall have invested under the provisions of the Edge Act.
Applications for approval.—Such approval may be obtained through an informal
application in the form of a letter addressed to the Federal Reserve Board either by the
director, officer, or employee involved, or in his behalf by one of the banks or corporations involved. Such applications should be sent directly to the Federal Reserve
Board.
AMENDMENTS TO THE ACT.
315
AMENDMENTS TO FEDERAL RESERVE ACT AND CLAYTON
ANTITRUST ACT.
[PUBLIC—No. 170—66TH CONGRESS.]
[H. R. 12711.]
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 section 14 of the Federal Reserve Act as amended by the
Acts approved September 7, 1916, and June 21, 1917, be further amended by striking
out the semicolon after the word '' business " at the end of subparagraph (d) and insert
in lieu thereof the following : "and which, subject to the approval, review, and determination of the Federal Reserve Board, may be graduated or progressed on the basis
of the amount of the advances and discount accommodations extended by the
Federal reserve bank to the borrowing bank."
Approved, April 13, 1920.
[PUBLIC—No. 225—66TH CONGRESS.]
[H. R. 13138.]
An Act To amend section 8 of an Act entitled " A n Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes," approved October 15,1914, as amended May 15,1916.
Be it enacted by the Senate and^ House of Representatives of the United States of America
in Congress assembled, That section 8 of an Act entitled '' An Act to supplement existing
laws against unlawful restraints and monopolies, and for other purposes,'' approved
October 15, 1914, as amended by the Act of May 15, 1916, be further amended by inserting in the proviso at the end of the second clause of said section after the word '' prohibit " the words '' any private banker or,'' so that the proviso as amended shall read:
" And providedfurther, That nothing in this Act shall prohibit any private banker
or any officer, director, or employee of any member bank or class A director of a Federal reserve bank, who shall first procure the consent of the Federal Reserve Board,
which board is hereby authorized, at its discretion, to graot, withhold, or revoke such
consent, from being an officer, director, or employee of not more than two other banks,
banking associations, or trust companies, whether organized under the laws of the
United States or any State, if such other bank, banking association, or trust company
is not in substantial competition with such banker or member bank.
"The consent of the Federal Reserve Board may be procured before the person applying therefore has been elected as a class A director of a Federal reserve bank or as a
director of any member bank.''
Approved, May 26, 1920.
316
ANNUAL, REPORT FEDERAL RESERVE BOARD.
SUMMARY OF ALL AMENDMENTS TO THE FEDERAL RESERVE
ACT.
The following is a brief explanation of the various amendments
to the Federal Reserve Act. It consists of two parts: Part 1, which
contains a discussion of the various acts which specifically amended
the text of the Federal Reserve Act; and Part 2, which contains a
discussion of those acts which did not change the text of the Federal
Reserve Act but which in effect amended the substance of the act.
PART I.'ACTS
SPECIFICALLY AMENDING THE
FEDERAL
RESERVE
ACT.
The following acts specifically amended the Federal Reserve Act:
ACT OF AUGUST 4, 1914.
Section 27 of the Federal Reserve Act as originally enacted amended
section 9 of the Aldrich-Vreeland Act of May 30, 1908, by reenacting
that part relating to the tax rates on national bank notes secured
otherwise than by bonds of the United States. The act of August
4, 1914, amended section 27 of the Federal Reserve Act so as to add
to the above named section of the Aldrich-Vreeland Act, a proviso
authorizing the Secretary of the Treasury to suspend the limitations
imposed by Sections 1, 3, and 5 of the Aldrich-Vreeland Act on the
issue of such additional national bank notes and to extend the privileges of the Aldrich-Vreeland Act to all qualified State banks and
trust companies which had joined the Federal Reserve System or
might contract to do so within a limited time. This amendment
has become inoperative by reason of the expiration by limitation
on June 30, 1915, of the Aldrich-Vreeland Act.
ACT OF AUGUST 15, 1914.
Reserves.—This act amended section 19 of the Federal Reserve
Act so as to permit State banks or trust companies which were then
coming into the system to continue to keep their reserves with other
State banks or trust companies during three years within which the
change was to be made from the old system to the Federal Reserve
System.
ACT OF MARCH 3, 1915.
Acceptances.—This act amended section 13 (paragraphs 3, 4, and
5) so as to authorize the Federal Reserve Board, in its discretion, to
increase the amount of acceptances based on the importation or
exportation of goods which a member bank of the system may discount and which a Federal Reserve Bank may rediscount.
ACT OF SEPTEMBER 7, 1916.
Reserves.—Section 11 was amended by the addition of a new subsection (m) which authorized the Federal Reserve Board, upon an
affirmative vote of not less than five, to permit member banks to
carry in the Federal Reserve Banks any portion of their reserves
then required to be held in their own vaults.
AMENDMENTS TO THE
ACT.
317
Deposits with Federal Reserve Banks.—Section 13 was amended so
as to authorize Federal Reserve Banks to receive on deposit from
member banks all checks and drafts payable on presentation, and
also for collection maturing bills. Prior to the amendment the
Federal Reserve Banks were authorized to receive on deposit only
those checks and drafts which were drawn upon solvent member
banks and other Federal Reserve Banks. The amendment also
authorized any Federal Reserve Bank to receive for purposes of
collection as well as exchange checks and drafts payable upon presentation within its district and maturing bills payable within its
district.
Rediscounts,—Section 13 was further amended so as to provide
that the indorsement by a, member bank of notes, drafts, and bills
of exchange discounted with its Federal Reserve Bank should be
deemed to constitute a waiver of demand notice and protest by the
member bank as to its own indorsement exclusively. Prior to the
amendment member banks were required to execute waivers of
demand, notice, and protest.
Section 13 was further amended so as to specifically provide that
certain notes, drafts, and bills of exchange having a maturity of 90
days, exclusive oj days of grace, might be admitted to discount. Prior
to this amendment the statute was silent on the question as to whether
the maturity included days of grace.
Section 13 was further amended so as to provide that the discount
of notes, drafts, and bills of exchange drawn for agricultural purposes
or based on live stock and having a maturity not exceeding six months
shall be limited to a certain percentage of the total assets of the Federal
Reserve Bank. Prior to this amendment such paper was limited to
a certain percentage of the capital of a Federal Reserve Bank instead
of its total assets.
By another amendment to section 13 the aggregate of notes, drafts,
and bills bearing the signature of any one borrower (other than bills
of exchange drawn against actually existing values) which may be
discounted for a member bank is limited to 10 per cent of the unimpaired capital and surplus of the member bank. Prior to this amendment Federal Reserve Banks were not permitted to discount notes
or bills bearing the signature or indorsement of any one person, company, firm, or corporation to an amount in excess of 10 per cent of the
capital and surplus of the member bank, whether such person, firm, or
corporation was the borrower or not.
Acceptances.—Prior to this amendment member banks were permitted to accept only such drafts or bills of exchange as grew out of
transactions involving the importation or exportation of goods.
This act amended section 13 so as to greatly broaden the powers of
member banks with regard to acceptances. Under section 13, as so
amended, member banks are permitted to accept drafts or bills of
exchange under certain conditions:
(a) Which grow out of transactions involving the importation or
exportation of goods.
(6) 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.
318
ANNUAL REPORT FEDERAL RESERVE BOARD.
(c) Which are secured at the time of acceptance by warehouse
receipts or other such documents conveying or securing title covering
readily marketable staples.
' (d) 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.
In enacting this amendment Congress inadvertently omitted from
section 13 that provision which permitted national banks with the
approval of the Federal Reserve Board to accept up to 100 per cent
of their capital and surplus in transactions involving imports or
exports.
Advances to member banks.—This act further amends section 13 so
as to authorize Federal Reserve Banks to make advances to member
banks on promissory notes of such member banks for a period not
exceeding 15 days, such notes being secured by notes, drafts, bills of
exchange, or bankers' acceptances eligible for rediscount or for purchase by Federal Reserve Banks, or by bonds or notes of the United
States.
Member banks as insurance agents and real estate brokers.—Section
13 was further amended so as to permit national banks located and
doing business in places with a population not exceeding 5,000
inhabitants to act as agents for fire, life, or other insurance companies,
and also to act as brokers or agents for others in making or procuring
loans on real estate located within 100 miles of the place in which
the bank is located.
Banking accounts for foreign correspondents.—Section 14, subsection (e), was amended so as to permit Federal Reserve Banks, with
the consent of the Federal Reserve Board, to open and maintain
banking accounts for foreign correspondents or agencies.
Securityfor Federal Reserve notes.—Prior to this amendment Federal
Reserve notes could be secured only by notes and bills of exchange
accepted for rediscount under section 13. This act amended section
16 so as to permit Federal Reserve notes to be secured also by drafts,
bills of exchange or acceptances rediscounted under the provisions
of section 13 or bills of exchange indorsed by member banks of any
Federal Reserve district and purchased under the provisions of
section 14.
Loans on real estate.—Section 24, relative to loans on farm lands,
was amended so as to permit banks lying contiguous to the lines
of a Federal Reserve district to make loans on farm lands within a
radius of 100 miles, regardless of district lines, and to make loans on
other improved and unincumbered real estate within the same
district but for not exceeding a period of one year.
Foreign banking business.—Prior to this amendment national banks
were authorized to establish branches in foreign countries or dependencies or insular possessions of the United States. This act
amended section 25 so as to permit them to either establish such
branches or to invest an amount not exceeding 10 per cent of their
paid-in capital stock and surlpus in one or more corporations incorporated under the laws of the United States or of any State, and
principally engaged in international or foreign banking.
AMENDMENTS TO THE ACT.
319
ACT OF JUNE 21, 1917.
Branches of Federal Reserve Banks.—Section 3 was amended so as
to authorize the Federal Reserve Board to permit or require any
Federal Reserve Bank to establish branch banks within its district.
As so amended, it provides that the number of directors of such
branches shall at the option of the Board be not more than seven nor
less than three.
Assistants to Federal Reserve agents.—Section 4 was amended so
as to provide for the appointment of assistants to the Federal Reserve agents, who shall have power to act in the agent's name and
stead during his absence or disability. The office of the deputy
reserve agent, formerly held by one of the Class C directors, was
abolished.
Membership of State banks and trust companies.—Section 9 relating
to the admission of State banks and trust companies to the Federal
Reserve System was amended so as to provide that, subject to the
provisions of the Federal Reserve Act and to the regulations of the
Federal Reserve Board made pursuant thereto, any State bank or
trust company which becomes a member of the Federal Reserve
System shall retain its full charter and statutory rights and may
continue to exercise all corporate powers granted to it by the State
in which it was created and shall be entitled to all the privileges of
member banks; provided, however, that no Federal Reserve Bank
may discount for such member bank any note, draft, or bill of exchange of any one borrower who is liable to the member bank for
more than 10 per cent of its capital and surplus.
The amendment took away from the Comptroller of the Currency
the power granted by section 21 to examine State banks and trust
companies which are member banks, but provided that such banks
shall be subject to examinations by direction of the Federal Reserve
Board or of the Federal Reserve Bank by examiners selected or
approved by the Federal Reserve Board. Examinations by State
authorities, when approved by the directors of the Federal Reserve
Bank, may be accepted in lieu of examinations by examiners approved
by the Federal Reserve Board. Reports of condition and of payments of dividends must be made to the Federal Reserve Bank
instead of to the Comptroller of the Currency as in the past. State
banks and trust companies which have become members are author-7
ized to withdraw from the Federal Reserve System after six months
written notice.
Clearing and collection for nonmember banks.—Section 13 was
amended so as to authorize Federal Reserve Banks solely for purposes of collection or exchange to receive deposits of currency,
checks, drafts, and maturing notes or bills from any nonmember bank
or trust company which maintains with the Federal Reserve Bank
a balance sufficient to offset the items in transit held for its account
by the Federal Reserve Bank. Section 13 as amended also authorizes any member bank 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, for the collection or payment
of checks and drafts and remission thereof by exchange or otherwise.
Federal Reserve Banks, however, are not subject to these charges.
320
ANNUAL REPORT FEDERAL RESERVE BOARD.
Acceptances by member hanks.—Section 13 was further amended
so as to restore that provision authorizing the Federal Reserve Board
to permit member banks to accept drafts and bills of exchange
drawn against shipments of goods or against warehouse receipts
covering readily marketable staples up to 100 per cent of the capital
and surplus of the accepting bank. This provision has been inadvertently omitted from section 13 by the amendment of September
7, 1916.
Foreign agencies of Federal Reserve Banks.—Section 14, subsection
(e), was amended so as to authorize the Federal Reserve Board to
permit or require reserve banks to open and maintain accounts in
foreign countries, etc., and also to provide for participation accounts.
Issue of Federal Reserve notes against gold.—Section 16 was amended
so as to authorize the issue of Federal Reserve notes upon the security
of gold or gold certificates and so as to provide that gold or gold
certificates held by the Federal Reserve Agent as collateral security
shall be counted as part of the gold reserve which the Federal Reserve
Bank is required to maintain against its notes in actual circulation.
As so amended, this section also authorizes the issue of Federal
Reserve notes upon the security of 15-day notes of member banks
secured by eligible commercial paper or by bonds or notes of the
United States.
Deposits of gold with the Treasurer or Assistant Treasurer,—Section
16 was further amended so as to authorize the Treasurer or any
Assistant Treasurer of the United States to receive deposits of gold
or gold certificates w^hen tendered by any Federal Reserve Bank or
Federal Reserve Agent for credit to its or his account with the Federal Reserve Board.
Deposits of Government bonds with the Treasurer.—Section 17 was
amended so as to repeal any provision of law requiring any national
bank to maintain a minimum deposit of bonds with the Treasurer
of the United States.
Reserves.—Section 19 was amended so as to provide for an immediate transfer of all reserves of member banks to Federal Reserve
Banks. Under this section the total amount of reserves to be maintained by a member bank must be deposited with.the Federal Reserve
Bank of its district. The amount of these reserves is as follows:
Demand Time
deposits. deposits.
Country banks
Reserve city banks
Central reserve city banks..
Per cent. Per cent.
3
10 i
3
13 !
3
Member banks are no longer required to maintain any reserves
in their own vaults.
Balances with nonmember banks.—Section 19 formerly provided
that no
member bank should keep on deposit with "any nonmember
bank' 7 any sum in excess of 10 per cent of its own capital and surplus.
That restriction necessarily applied to balances with foreign banks
as well as to balances with nonmember State banks and trust companies. It was amended so as to apply only to deposits with '' any
State bank or trust company which is not a member bank."
AMENDMENTS TO THE ACT.
321
Salaries or fees of directors, officers, or employees.—Section 22, re-
lating to the salaries or fees paid to directors, officers, or employees
of member banks, was amended by the addition of provisos to the
effect that directors, officers, employees, or attorneys shall not be
prohibited from receiving the same rates of interest paid to other
depositors of the bank, and that notes, drafts, bills, or other evidences
of debt executed or indorsed by directors or attorneys of the bank
may be discounted with such bank on the same terms and conditions
as other notes, drafts, bills, or other evidences of debt upon the
affirmative vote or written assent of a majority of the members of
the board of directors of such member bank.
ACT OF SEPTEMBER 26, 1918.
Election of Federal Reserve BanJc officers.—Section 4 of the Federal
Reserve Act was amended so as to leave to the discretion of the Federal
Reserve Board the grouping of the member banks in each district
into three general groups or divisions, without the old requirement
that each group shall contain, as nearly as possible, one-third of the
aggregate number of the banks in the district. Section 4 was further
amended so as to permit each member bank, by a resolution of its
board of directors or by an amendment to its by-laws, to authorize
its president, cashier, or some other officer to cast its vote in elections
of Federal Reserve Bank directors in place of the old method of electing by ballot a district reserve elector at a regularly called meeting
of the board of directors of each member bank in the district to cast
its vote at a particular time. A provision was added that no officer
or director of a member bank shall be eligible to serve as a Class A
director unless nominated and elected by banks which are members
of the same group as the member bank of which he is an officer or
director, and that no person who is a director or officer of more than
one member bank shall be eligible for nomination as a Class A director,
except by banks in the same group as the bank having the largest
aggregate resources of any of those of which such person is a director
or officer.
Fiduciary powers of national banks.—Section 11 (k) was amended
and reenacted so as to authorize the Federal Reserve Board to permit national banks to act as guardians of estates, assignees, receivers,
committees of estates of lunatics, or in any other fiduciary capacity
in which State banks, trust companies, or other corporations whicn
come into competition with national banks are permitted to act
under the laws of the State in which the particular national bank
making the application is located, in addition to the right granted
under the old Act to act as trustee, executor, administrator, and
registrar of stocks and bonds. Moreover, the act as amended provides that77 it shall not be deemed to be ''in contravention of State or
local law to permit the exercise of such powers by national banks
whenever the laws of the particular State authorize or permit the exercise of such powers by State banks, trust companies, or other corporations competing with national banks. It is prescribed that all
assetsheldin any fiduciary capacity shallbesegregated from the general
assets of the bank; that a separate set of books and records shall be
kept; that such books shall be open to the inspection of the State
322
ANNUAL REPORT FEDERAL RESERVE BOARD.
authorities; that national banks shall not receive in their trust departments deposits of current funds subject to check, or deposits of checks,
drafts, or similar instruments, that trust funds deposited with the
general assets of a bank shall be properly secured; that the owners
of such funds shall have a lien on the securities set apart to protect
these funds and that national banks acting as fiduciaries shall comply
with the State requirements as to the deposit of securities with the
State authorities; that national banks shall not be required to execute bonds if State corporations under similar circumstances are
exempt from such requirements; that national banks shall have the
power to execute such bonds; that oaths or affidavits required may
by executed by an officer of a national bank; that it shall be unlawful for a national bank to lend trust funds to any bank officer, director, or employee. In passing upon applications the Federal Reserve
Board is required to take into consideration the amount of capital
and surplus of the applying bank and other material facts, and is
prohibited from granting such permits to national banks having a
capital and surplus less than is required of State banking institutions
under State law.
Issuance of $500, $1,000, $5,000, and $10,000 Federal Reserve
notes.—Section 16 was amended so as to permit the issuance of Federal
Reserve notes in denominations of $500, $1,000, $5,000, and $10,000,
in addition to the denominations formerly permitted.
Reserves of national hanks in outlying districts.—Section 19 was
amended so as to permit the Federal Reserve Board, upon the
affirmative vote of five members, to require national banks located
in outlying districts of a reserve city or in territory added to such
city t y the extension of its corporate charter, to maintain only such
reserves as are required to be maintained by country banks; and to
require national banks similarly located in central reserve cities, or
in territory similarly added to such cities, to maintain only such
reserves as are required to be maintained by country banks or by
banks in reserve cities.
Amendments to section ^.—Section 22 was amended so as to clarify
and modify the existing provisions and was subdivided into subsections
(a), (b), (c), {d), (e), and (/).
Loans and gratuities to hank examiners.—Section 22 (a) as amended
prohibits loans and gratuities to bank examiners and provides
penalties for violation of that provision.
Disclosures of confidential information.—Section 22(&) provides
that no national bank examiner shall perform any other service for
compensation for any bank, or officer, director, or employee thereof.
It further forbids disclosures of confidential information by examiners, public or private, and provides a penalty for violation of the
provisions of that subsection.
Commissions for obtaining loans.—Section 22 (c) prohibits any
officer, director, employee, or attorney of a member bank from
receiving a commission or other thing of value for procuring loans
or purchases or discounts of any commercial paper or similar obligations.
Purchases from, and sales to, directors,—Section 22 id) imposes the
conditions under which a member bank may contract for or purchase
or sell securities or other property where the other party in interest
in the transaction is a director of such bank.
AMENDMENTS TO THE
ACT.
323
Interest on deposits of officers, directors, or employees.—Section 22 (e)
prohibits the payment of a greater rate of interest to any officer, director, employee, or attorney than is paid to any other depositor.
Liability for violating provisions.—Section 22(/) provides that
directors and officers of member banks knowingly violating or permitting violations of section 22, shall be liable in their personal and
individual capacity for all damages which the member bank, its
shareholders, or any other persons, may sustain in consequence thereof.
Over-certification of checks, embezzlements, etc.—Sections 5208 and
5209, Revised Statutes, which are penal sections relating to the overcertification of checks, embezzlement, abstraction or willful misapplication of moneys, funds, or credit of national banks by officers,
directors, agents, or employees thereof and to false entries in books,
reports, or statements of national banks with intent to injure or
defraud, on the part of any officer, director, agent, or employee of
a national bank, were made applicable to similar acts committed by
officers, directors, agents, or employees of Federal Reserve Banks.
ACT OF MARCH 3, 1919.
Earnings cf Federal Reserve Banks.—Section 7 of the Federal Reserve Act was amended so as to permit Federal Reserve Banks to accumulate a surplus of 100 per cent instead of 40 per cent as heretofore
provided, before paying the excess of such net earnings to the United
States as a franchise tax.
Eligibility of ex-board members to serve member banks.—Section 10 was
amended so as to permit appointive members of the Federal Reserve
Board to serve member banks after they have served the full term for
which they were appointed.
Rediscount of leans in excess cf 10 per cent secured by Government
bonds or notes.—Section 11 (ra), which formerly authorized the Federal
Reserve Board to permit member banks to carry with Federal Reserve
Banks any portion of their reserves required by section 19 to be held
in their own vaults, was stricken out and there was substituted therefor a new section ll(m) which authorizes the Federal Reserve Board,
upon the affirmative vote of five members, to permit Federal Reserve
Banks to discount for member banks paper bearing the signature or indorsement of any one borrower in excess of 10 per
cent, but in no case to exceed 20 per cent of the member bank's
capital and surplus, provided that all such paper is secured by
a like face amount of bonds or notes of the United States, issued
since April 24, 1917. It was designed to broaden the discount
powers of Federal Reserve Banks to correspond to the lending powers
of national banks as enlarged by the act of September 24, 1918,
which amended the National Bank Act so as to permit national
banks, under regulations prescribed by the Comptroller of the Currency, with the approval of the Secretary of the Treasury, to lend to
one person an amount in excess of 10 per cent of their capital and
surplus, provided such loans are secured by United States bonds or
certificates of indebtedness issued after April 24, 1917. In effect, it
amended sections 9 and 13. It lapsed after December 31, 1920.
Engraving signatures on national bank notes.—Section 5172, Revised
Statutes, was amended so as to authorize national bank notes to be
signed by the engraved signatures of the president or vice president.
This, in effect, amended section 27 of the Federal Reserve Act.
324
ANNUAL REPORT FEDERAL RESERVE BOARD.
ACT OF SEPTEMBER, 17, 1919.
Section 25 was amended so as to authorize any national bank,
until January 1, 1921, without regard to the amount of its capital
and surplus, to invest not exceeding 5 per cent of its capital and surplus in the stock of one or more corporations chartered under Federal
or State law and principally engaged in such phases of international
or foreign financial operations as may be necessary to facilitate
exports from the United States.
ACT OF DECEMBER 24? 1919.
u
Edge Corporations."—A new section was added to the Act—Section 25 (a)—which provides for the Federal incorporation of institutions to engage in international or foreign banking or other financial
operations.
ACT OF APRIL 13, 1920.
Graduated discount rates.—Section 14 was amended so as to authorize
Federal Reserve Banks, subject to the approval, review, and determination of the Federal Reserve Board, to establish discount rates
graduated or progressed on the basis of the amount of the advances
and discount accommodations extended by the Federal Reserve
Bank to the borrowing bank.
PART II. ACTS IN EFFECT AMENDING THE FEDERAL
RESERVE ACT.
The following acts either directly affect the Federal Reserve
System in some way or amend the Federal Reserve Act without
specifically making any textual changes in the act itself.
CLAYTON ANTITRUST ACT.
The Clayton Antitrust Act, approved October 15, 1914, as amended
by the Kern Amendment approved May 15, 1916, charges the Federal Reserve Board with the duty of enforcing that part of section
8 of the Clayton Act which relates to interlocking bank directorates,
and vests in the Federal Reserve Board power to permit a person to
serve not more than three banks coming within the prohibitions of
the Clayton Act, provided such banks are not in substantial competition. On May 26, 1920, the Kern Amendment was amended
so as to authorize the Federal Reserve Board to grant permits to
private bankers to serve not more than two of such banks.
AMENDMENT TO POSTAL SAVINGS ACT.
Section 2 of the amendment to the Postal Savings Act, approved
May 18, 1916, requires postal savings funds to be deposited with member banks of the Federal Reserve System instead of nonmember banks,
if there are any duly qualified member banks in the city or town where
such postal savings deposits are made.
AMENDMENTS TO THE ACT.
325
FARM LOAN ACT.
Section 5 provides that that part of the capital of any Federal land
bank which is required to be held in quick assets may consist of deposits in member banks of the Federal Reserve System.
Section 13 authorizes Federal land banks to deposit their securities
and current funds subject to check with any member bank of the
Federal Reserve System.
Section 27 authorizes the Federal Reserve Banks and member banks
of the Federal Reserve System to buy and sell farm loan bonds.
THE LIBERTY BOND ACTS.
Deposits of proceeds of sales of Liberty bonds.—Section 7 of the First
Liberty Bond Act, approved April 24, 1917, section 8 of the Second
Liberty Bond Act, approved September 24, 1917, and section 8 of the
Third Liberty Bond Act, approved April 4,1918, authorize the Secretary of the Treasury to deposit with banks and trust companies, proceeds arising from the sale of Liberty bonds, certificates of indebtedness, and war savings stamps, and exempts such deposits from the
reserve requirements of national banks or member banks.
THE W A R FINANCE CORPORATION ACT.
Discount of notes of member banks when secured by bonds of the War
Finance Corporation.—Section 3 of the War Finance Corporation Act,
approved April 5, 1918, authorizes the Federal Reserve Banks to discount direct obligations of member banks secured by bonds of the
War Finance Corporation and to use notes so secured, if it becomes
necessary, as a basis for Federal Reserve notes.
Depositaries and fiscal agents of War Finance
Corporation.—Section
15 of the War Finance Corporation Act, approved April 5, 1918, as
amended by the Victory Loan Act, approved March 3, 1919, authorizes the War Finance Corporation to deposit its reserve fund in
member banks or in Federal Reserve Banks, and authorizes Federal
Reserve Banks to act as fiscal agents and depositaries of the War
Finance Corporation.
Section 20 amended section 5202 of the Revised Statutes by adding
a sixth exception covering liabilities incurred under the provisions of
the War Finance Corporation Act. Inasmuch as section 13 of the
Federal Reserve Act had amended and reenacted section 5202 of the
Revised Stautes, this in effect was an amendment to section 13 of
the Federal Reserve Act.
THE PITTMAN ACT.
Issuances of $1 and $2 Federal Reserve Bank notes.—The act, ap-
proved April 23,1918, known as the" Pittman Act" or " An Act to conserve the gold supply/' etc., provides that the Federal Reserve Banks
may be permitted or required by the Federal Reserve Board, at the
request of the Secretary of the Treasury, to issue Federal Reserve
Bank notes in any denomination, including denominations of $-1 and
$2 against the security of United States certificates of indebtedness
or of one-year United wStates gold notes.
326
ANNUAL REPORT FEDERAL RESERVE BOARD.
TRADING WITH THE ENEMY ACT.
Control of foreign exchange transactions.—The trading with the
enemy act, as amended by the act approved September 24, 1918, authorizes the President to use any agency he might select to control
foreign exchange transactions. Under authority of this act the
Federal Reserve Board was designated to perform this function as
the agency of the Secretary of the Treasury.
ACT OF OCTOBER 22, 1919.
This act amended section 5202 of the Revised Statutes by adding a
seventh exception covering liabilities created by the indorsement of
accepted bills of exchange payable abroad, actually owned by the
indorsing bank and discounted at home or abroad. Inasmuch as
section 13 of the Federal Reserve Act had amended and reenacted
section 5202 of the Revised Statutes, this amendment in effect was an
amendment to section 13 of the Federal Reserve Act.
TRANSPORTATION ACT OF 1920.
Section 210 (d) of the Transportation Act of 1920, approved February 28, 1920, provides that the Interstate Commerce Commission
or the Secretary of the Treasury may call upon the Federal Reserve
Board for advice and assistance with respect to any loan from the
United States to a railroad under authority of section 210 of the act,
or any application for such loan.
APPROPRIATION ACT OF MAY 29, 1920.
Abolition of Subtreasuries.—That part of the Appropriation Act
approved May 29, 1920, w^hich relates to the " Independent Treasury"
provides for the abolition of the Subtreasuries from and after July 1,
1921, and authorizes the Secretary of the Treasury, in his discretion,
to transfer any or all of the duties and functions of the Assistant
Treasurers or the Subtreasuries to the Treasurer of the United States,
or the mints or assay offices, or to utilize any of the Federal Reserve
Banks acting as depositaries or fiscal agents of the United States, for
the purpose of performing any or all of such duties and functions,
notwithstanding the limitations of section 15 of the Federal Reserve
Act. The Secretary of the Treasury is further authorized to assign
any or all the rooms, vaults, equipment, and safes or space in the
buildings used by the Subtreasuries to any Federal Reserve Bank
acting as fiscal agent of the United States.
ACTS OF STATE LEGISLATURES.
327
ACTS OF STATE LEGISLATURES IN OPPOSITION TO PAR
COLLECTION SYSTEM.
ACT OF MISSISSIPPI LEGISLATURE.
AN ACT TO prevent the Federal Reserve System from forcing the banks of this State into what is known
as the parring of checks, drafts, bills, etc. (commonly known as "cash items"); and for that purpose
making it mandatory on the banks of this State to charge exchange on such "cash items"; and fixing
the rates of such exchange.
SECTION 1. Be it enacted by the Legislature of the State of Mississippi, That for the
purpose of providing for the solvency, protection, and safety of the banking institutions of Mississippi, the established custom on the part of the banks of this State to
charge a service fee (commonly called " exchange ") for the collecting and remitting,
by exchange or otherwise, the proceeds of checks, drafts, bills, etc. (commonly known
among banks as "cash items") is hereby declared to be the law of this State; and the
banks of this State, both State and national, shall continue to make such charge as
fixed by custom when such '' cash items " are presented to the payer bank for payment
through or by any bank, banker, trust company, Federal reserve bank, post office,
express company, or any collection agency, or by any other agency whatsoever; and
the amount of such charge is hereby fixed at one-tenth of 1 per cent of the total amount
of such ''cash items" so presented and paid at any one time, and not less than 10
cents on any one such transaction; provided, however, no such charge shall be made
on checks or drafts given or drawn in settlement of obligations due the State of Mississippi or any subdivision thereof, or of the United States. And that no such charge can
be made by banks for the collection of checks deposited with said banks, where the
check is drawn on any other bank in the same municipality, city, town, or village, this
being the long-established custom of such banks. And provided that nothing in this
act shall be deemed to be mandatory upon the banks to charge exchange on checks or
drafts payable to a person in this State, and drawn on a bank, trust company, or
person within or without the State, but it shall be optional with such banks whether
they shall charge exchange on checks or drafts payable to a person within this State,
and drawn on a bank, trust company, or person within or without this State.
SEC. 2. That no officer in this State shall protest for nonpayment any such "cash
item " when such nonpayment is solely on account of the failure or refusal of any of
said agencies to pay such exchange; and there shall be no right of action, either at
law or in equity, against any bank in this State for a refusal to pay such cash item,
when such refusal is based alone on the ground of the nonpayment of such exchange.
SEC. 3. That if for any reason the courts should hold that the national banks in
this State are not required to charge and collect such exchange, still this act shall
remain in full force and effect as to all other banks in this State; and in the event of
such holding by the courts, or the refusal of any national bank in this State to comply
with this act, then it shall be optional with State banks located in the same municipality with a national bank or State banks which are members of the Federal Reserve System as to whether such charge shall be made.
SEC. 4. That this act shall take effect and be in force from and after its passage.
Approved March 6, 1920.
ACT OF LOUISIANA LEGISLATURE.
To prevent the Federal Reserve System from forcing the banks of this State into what is known as the
. parring of checks, drafts, bills, etc. (commonly known as "cash items"); and for that purpose making it
optional on the banks of this State to charge exchange on such "cash items"; and fixing the rates of
such exchange.
SECTION 1.—Be it enacted by the General Assembly of the State of Louisiana, That
for the purpose of providing for the solvency, protection and safety of the banking
institutions of Louisiana, the established custom on the part of the banks of this
State to charge a service fee (commonly called exchange) for collecting and remitting
by exchange or otherwise the proceeds of checks, drafts, bills, etc. (commonly known
among banks as "cash items"), is hereby declared to be the law of this State; and
the banks of this State, both State and national, shall have the right to make such
charge as fixed by custom when such "cash items" are presented to the payer bank
for payment, through or by any bank, banker, trust company, Federal reserve bank,
postoffice, express company, collection agency, or by any other agency whatsoever;
and the amount of such charge shall not exceed one-tenth of one per centum of the
total amount of such "cash items" so presented and paid at any one time, and the
minimum charge shall be ten cents; provided, however, that no such charge shall
45525°—21
22
328
ANNUAL REPORT FEDERAL RESERVE BOARD.
be made on checks or drafts given or drawn in settlement of obligations due the State
of Louisiana or any subdivision thereof, or of the United States. And that no such
charge can be made by banks for the collection of checks deposited with said banks,
when the check is drawn on any other bank in the same municipality, city, town or
village, this being the long-established custom of such banks. And, provided that
nothing in this act shall be deemed to be mandatory upon the banks to charge exchange on checks or drafts payable to a person in this State, and drawn on a bank,
trust company or person within or without this State, but it shall be optional with
such banks whether they shall charge exchange on checks or drafts payable to a
person within this State, and drawn on a bank, trust company or person within or
without this State.
SEC. 2. That no officer in this State shall protest for nonpayment any such "cash
items " when such nonpayment is solely on account of the failure or refusal of any
of said agencies to pay such exchange; and there shall be no right of action, either
at law or in equity, against any bank in this State for a refusal to pay such cash item,
when such refusal is based alone on the ground of the nonpayment of such exchange.
SEC. 3. Be it further enacted, etc., That if for any reason the courts shall hold that
the national banks in this State are not required to charge and collect such exchange
still this act shall remain in full force and effect as to all other banks in this State;
and in the event of such holding by the courts, or the refusal of any national bank
in this State to comply with this act, then it shall be optional with State banks located
in the same municipality with a national bank or State banks which are members of
the Federal Reserve System as to whether such charge shall be made.
SEC. 4. Be it further enacted, etc., that all laws or parts of laws in conflict herewith be and the same are hereby repealed.
Approved.
ACT OF SOUTH DAKOTA LEGISLATURE.
AN ACT Entitled, An act to regulate exchange charges; to prohibit notaries from protesting unpaid
items; to prevent the embarrassment of the State banks, and declaring an emergency.
SECTION 1. Be it enacted by the Legislature of the State of South Dakota, That the
banks of this state may charge a service fee for collecting and remitting by exchange
or otherwise checks, drafts, bills, etc., commonly known as " cash items "and the
banks of this state may make such charge when such "cash items" are presented
to the payer bank for payment through any bank, banker, trust company, Federal
Reserve Bank, Post Office, express company, or any collectors' agency, or by other
agency whatsoever; and the amount of such charge is hereby fixed at one-tenth of
one per cent of the total amount of such cash items so presented and paid at any one
time, and not less than ten cents on any one transaction, provided, however, that no
such charge can be made by banks for collecting a check presented to said banks
where the check is drawn on any bank in the same municipality, city, town, or village
and does not bear an out-of-town indorsement.
SEC. 2. That any officer or notary public who shall protest checks for nonpayment
where payment is refused solely on account of the presenter's refusal to pay exchange,
shall be guilty of a misdemeanor, and there shall be no right of action either in law
or in equity against any bank in this state for a refusal to pay such cash item when such
refusal is based alone on the ground of the nonpayment of such exchange.
SEC. 3. That whenever one or more checks on any bank in the hands of a single
holder or holders for an aggregate sum exceeding amount of such bank's legal reserve
required to be kept in its vault shall be presented on the same date and payment
thereof demanded, and said bank may elect to make such payment in exchange
instead of cash.
SEC. 4. Whereas this Act is necessary for the immediate support of existing institutions of this state, an emergency is declared to exist and this act shall take effect
and be in force from and after its passage and approval.
Approved, July 3, 1920.
ACT OF GEORGIA LEGISLATURE.
AN ACT TO amend an act approved August 16, 1919, entitled "An act to regulate banking in the
State of Georgia; * * * to provide for the payment of checks when presented by banks or trust companies, either in currency or in exchange, and fixing the rate of such exchange; * * *.',
SECTION 1. Be it enacted by the General Assembly of the State of Georgia, and it is
hereby enacted by authority of the same, That from and after the passage of this Act,
the Act approved August 16, 1919, entitled " A n Act to regulate banking in the
State of Georgia; to create the Department of Banking of the State of Georgia; to
ACTS OF STATE LEGISLATURES.
329
provide for the incorporation of banks, and the amendment, renewal, and surrender
of charters; to provide penalties for the violation of laws with reference to banking
and the banking business; and for other purposes," be amended in the following
particulars, to-wit:
•fc
#•
-K
*
#
•*
•£
Amendment to Section 27, Article 19: By inserting in Section 27, Article 19, after
the body of said section and before the proviso, the words "provided that the reserve
against savings and time deposits may be invested in bonds of the United States
or of this State at the market value thereof,'' and by adding at the end of said Section
the following: "And provided that a bank shall have the right to pay checks drawn
upon it when presented by any bank, banker, trust company, or any agent thereof,
either in money or in exchange, drawn on its approved reserve agents, and to charge
for such exchange not exceeding one-eighth of 1 per cent of the aggregate amount
of the checks so presented and paid."
#
#
-a-
*•
#•
*
•*
SEC. 2. Be it further enacted, That all laws and parts of laws in conflict with this Act
are hereby repealed.
Approved, August 14, 1920.
ACT OF ALABAMA LEGISLATURE.
To further regulate the business of banking in the State of Alabama and to regulate the charge for exchange
by banks and to regulate the protest of checks.
SECTION 1. Be it enacted by the Legislature of Alabama, That hereafter banks in Alabama shall charge for exchange not exceeding one-eighth of one per centum when
paying or remitting for checks drawn upon them; that whenever a check or checks
are forwarded or presented to a bank for payment by any Federal Reserve Bank, express company or post-office employee, other bank, banker, trust company, or by
any agent or agents thereof, or through any other agency or individual, the paying
bank or remitting bank may pay or remit the same, at its option, either in money, or
in exchange drawn on its reserve agent or agents in the city of New York or in any
reserve city within the Sixth Federal Reserve District; and, at its option, it may
charge for such exchange not exceeding one-eighth of one per centum of the aggregate
amount of the checks so presented and paid; provided, that the minimum charge
may be ten cents.
SEC. 2. That hereafter it shall be unlawful for any person or notary public, or
other official in this State to protest any check for nonpayment, when payment is
declined solely on the ground that the paying bank exercises its option to collect
exchange on such check, not exceeding one-eighth of one per centum of the amount
of such check, or the minimum charge of ten cents as set forth in Section 1 hereof;
and any person, notary public, or other official violating this section shall be responsible for all damages to all interested persons or corporations.
SEC. 3. That all laws and parts of laws in conflict herewith be and the same are
hereby repealed; that this act shall become effective thirty days after passage and
approval by the Governor.
Approved, September 30, 1920.
330
ANNUAL REPORT FEDERAL RESERVE BOARD.
OPINION OF CIRCUIT COURT OF APPEALS IN ATLANTA PAR
COLLECTION CASE.
The following is the opinion, filed November 19, 1920, of the
United States Circuit Court of Appeals, Fifth Circuit, in the so-called
"Par Clearance" case instituted against the Federal Reserve Bank
of Atlanta, last January. The opinion affirms the decision of the
District Court of the Northern District of Georgia and, in a full discussion of the points at issue, holds that the Federal Reserve Banks
have the right to collect checks, drawn on nonmember banks which
refuse to remit at par, by having such checks presented at the counters
of the drawee banks, and that the case is one of which the United
States district court has jurisdiction.
IN THE UNITED STATES CIRCUIT COURT OF APPEALS, FIFTH CIRCUIT. AMERICAN BANK &
TRUST COMPANY ET AL., APPELLANTS, V. FEDERAL RESERVE BANK OF ATLANTA,
GA., ET AL., APPELLEES.
Before Walker and Bryan, circuit judges, and Grubb, district judge.
GRUBB , District Judge:
This is an appeal from a decree in equity of the District Court of the United States
for the Northern District of Georgia, dismissing the bill or petition for want of equity.
The suit was originally brought in the Superior Court of Fulton County Ga., and was
removed to the District Court of the United States for the Northern District of Georgia,
by the appellee, the Federal Reserve Bank of Atlanta. The appellants were State
banks of Georgia, not members of the Federal Reserve System. The relief prayed for
in the petition filed in the State court > was an injunction against the appellees, restraining them from collecting checks drawn on appellants "except in the usual and ordinary channel of collecting checks through correspondent banks or clearing houses,"
the purpose being to prevent collection through agents presenting the checks over
the banks' counter. The appellants moved to remand the cause to the State court,
which was denied, and the bill was dismissed on the appellees' motion to dismiss for
want of equity. The appeal presents the questions of the correctness of the rulings
of the district court (1) in refusing to remand the case, and (2) in dismissing the Dill
on the merits.
(1) The jurisdictional amount is conceded to be present. There was no diversity
of citizenship claimed. Removal was granted because the cause was considered to
be one arising under the Constitution and laws of the United States. This because
(1) the defendant, the Federal Reserve Bank, was incorporated under an act of
Congress, and was neither a railroad corporation nor a national banking association;
and (2) because the appellants' petition or bill, as amended, introduced a Federal
question into the record, in that it charged the acts of the defendants, sought to be
enjoined, to be ultra vires of the powers of the appellee, the Reserve Bank, granted
by the Federal Reserve Act and its amendments. If the district court had original
jurisdiction of the cause of action for either or both of the reasons mentioned, the
cause was properly removed. The appellants contend that the Federal Reserve
Bank is a national banking association, the presence of which as a party defendant
would not introduce a question arising under the laws of the United States, and that
there is no other such question presented by the appellants' petition or bill.
We think the United States district court had original jurisdiction of the cause of
action for both of the reasons assigned. The case of Osborn v. Bank of the United
States (9th Wheat., 738), supported by many subsequent decisions of the Supreme
Court, settles the question of the j urisdiction of the Federal court in cases in which one
of the parties is a corporation, which owes its creation to an act of Congress, unless
another act of Congress has withdrawn such j urisdic tion. Nor is it important whether
the Federal incorporation occupies the position of plaintiff or of defendant in the
action. This is true unless a long line of Supreme Court decisions, in which jurisdiction was sustained upon this ground, without reference to the position of the corporation in the line-up of the parties, be disregarded. From this follows the right
of a Federal incorporation, made a defendant in a cause in a State court, to remove
the cause to the Federal court, unless prohibited by an act of Congress. (Texas &
Pacific Railway Co. v. Cody, 166 U. S., 606-609; Washington & Idaho R. R. Co. v.
Coeur D'Alene Ry. Co., 160 U. S., 177-193.) Congress has withdrawn jurisdiction
only in cases of railroad companies and national banking associations. The contention of appellants is that the Federal Reserve Bank of Atlanta is a national banking
ACTS OF STATE LEGISLATURES.
331
association within the meaning of the act of July 12, 1882 (c. 290); the judiciary act
of March 3, 1887, as corrected by the act of August 13, 1888 (c. 886, sec. 4); and by
section 24 of the Judicial Code of 1911. The prohibiting clause of the latter is: "And
all national banking associations established under the laws of the United States shall,
for the purpose of all other actions against them, real, personal, or mixed, and all
suits in equity, be deemed citizens of the States in which they are respectively located. " If this language applies to the Federal Reserve Banks, it withdraws jurisdiction from the Federal courts in cases in which they are parties and in which no
other ground of jurisdiction appears in the record. We do not think it can be held to
apply. At the time of the original limitation of jurisdiction in the act of July 12,
1882, and at the time of its renewals in the judiciary act of 1887, and in the Judicial
Code of 1911, Federal Reserve Banks Were unknown.
The only national banking associations then existent Were the national banks
organized under the national banking laws. The question is whether Congress
intended to include within this designation banks to be subsequently created of the
nature of the Federal Reserve Banks. The answer will depend upon the result
of a comparison instituted between the national banks and the reserve banks, and
is to be determined, not so much by points of identity (for all banks have many such),
but by points of difference. The important differences between national banks and
reserve banks, so far as the solution of this question is concerned, are (1) the disparity
in the number of each class, and (2) that the reserve banks are banks of deposit and
discount for other banks only and not for the general public. There are many othei
important differences, but we think the two mentioned are determinative. The one
class, small in number, acts as governmental fiscal agencies with no general clientele;
the other class serves the public generally and locally, and are necessarily numerous.
That all the provisions of the national banking act could be made applicable appropriately or safely to the class of reserve banks is clearly impossible. Yet the same
reasoning that Would apply the limitation of jurisdiction imposed upon national
banks to reserve banks would make it necessary to apply all other limitations against
and grants in favor of national banks to reserve banks. If the Reserve Banks are
national banking associations within the meaning of the act of July 12, 1882, and its
successors, for one purpose, they are so for all purposes of the national banking laws.
Such a conclusion would be a dangerous one, and lead to unforseeable consequences.
We think it safer to conclude that Congress intended national banking associations to
include only those that Were then being created or those of a kindred nature that might
thereafter be created; and that the differences between ordinary banks of deposit
and discount with the public as customers and banks whose only permissible stockholders and customers are the Government and other banks, and which are more
governmental agencies than private institutions, are not within the purview of national banking associations as contemplated by Congress when it enacted the limitation upon the jurisdiction of national banking associations, In view of the paucity
in number of the reserve banks, and their more intimate relation to the Government,
and their more remote contact with the general public, Congress may well have found
reason not to withdraw the jurisdiction of the Federal courts from them by reason
of their Federal incorporation, though it had done so in the case of national banks.
There is no express withholding of such jurisdiction. To imply it would necessarily
lead to other implications so far reaching and difficult to anticipate that we do not
think it should be implied.
If the fact of Federal incorporation of the Reserve Banks confers jurisdiction on
the Federal court, the fact that the officers of the appellee bank are made individual
codef end ants with it and that they are citizens of Georgia does not prevent removal.
(Matter of Dunn, 212 U. S., 374.)
(2) The amendment to the bill or petition of appellants charged that the acts of the
appellees sought to be enjoined, if committed, would be committed in excess of the
powers of the Federal Reserve Bank of Atlanta, and in violation of the provision of
the Federal Reserve Act. Paragraph 9 of the amendment charges that "the coercive
measures, now threatened, are not only not authorized or required by the terms of
the Federal Reserve Act, which includes the charter of defendant Reserve Bank, but
express provision is found therein for the performance of all clearing-house functions,
therein imposed in the regular way and through orderly banking channels, applicable
to nonmember banks as well as member banks. Wherefore plaintiffs charge that the
threatened coercive measures are ultra vires the charter of defendant Reserve Bank
and the execution thereof by the individual defendants would be illegal and should
be enjoined." The purpose of the petition or bill was not to enforce the collection
of compensation for services availed of by the defendant Reserve Bank at their reasonable value under the common law right. It was to compel the defendant bank to
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ANNUAL REPORT FEDERAL RESERVE BOARD.
avail itself of such services or, as an alternative, to abstain from handling the plaintiffs' check for collection. The bill prayed that the defendant bank be enjoined
from presenting petitioners' or plaintiffs' checks for collection in any but the usual
way through correspondence and remittance, Section 13 of the Federal Reserve Act
provided that "no such charges (for remission) shall be made against the Federal
Reserve Banks." Appellants' contention is that this prohibition prevents the Federal Reserve Banks from expending money in any way for the collection and remission
of the proceeds of checks and drafts drawn on nonmember and nondepositing banks
and that any attempt to collect such checks and drafts by presenting them over the
counter to drawee banks which would not remit for them at par was unauthorized
and ultra vires of the powers of the Reserve Banks under the Federal Reserve Act;
and appellants ask that the defendant bank be enjoined from handling such checks
and drafts in the manner stated for that reason. Appellee, the Reserve Bank, asserts
its right under the same provision of the Federal Reserve Act to collect such checks
and drafts by any method, provided it makes no payments to remitting banks for
services in remitting. Plaintiffs' cause of action was the alleged wrong asserted by
them to be caused by such collections. One ground upon which the wrong was urgeci
is that the Reserve Bank is forbidden by the Reserve Act to make collection of checks
and drafts in this manner. This presents for decision the proper construction of the
quoted provisions of the Federal Reserve Act, and it was presented in the plaintiffs'
own statement of their cause of action in the amendment to the bill and not as a suggested or anticipated defense which the defendants might be expected to set up as
an answer to the plaintiffs' cause of action. The solution of this question depends
upon the construction to be given sections 13 and 16 of the Federal Reserve Act and
not merely to a chartered power of the defendant bank. The plaintiffs having injected
this Federal question into their statement of their cause of action the case was thereby
made removable as one arising under the laws of the United States.
We think the district court of the United States properly entertained jurisdiction
for both reasons.
Coming to the merits, the appellants' cause of action is the prevention by injunction of the Federal Reserve Bank of Atlanta from collecting checks drawn on appellants' banks, in any other way than by correspondence and the remitting of the proceeds of the check by the bank on which it was drawn. The usage of the complaining
banks had been to make a deduction from the amount of the check in remitting the
proceeds to cover the so-called "exchange" or cost of remitting. This charge
could only be applied in cases in which the check was forwarded through the mails
to the drawee bank. If the check was presented over the counter of the drawee
bank either by the payee or his agent, the full amount of the check was required to
be paid, and the drawee bank was defeated in its endeavor to collect exchange on it.
The purpose of the bill was to prevent the Federal Reserve Bank from handling checks
on appellants and on other nonmember State banks except through the regular channel of correspondence or clearing. Section 13 of the Federal Reserve Act as amended
prohibited the Federal Reserve Bank from paying for the cost of remission. Consequently it was disabled from collecting through the regular channel from all banks
which insisted on deducting for the cost of remission. In the case of all such banks
it had the alternatives of not handling their checks at all or of presenting them for
collection over the counters of the drawee banks by agents, express companies, or
the postal authorities One contention of the appellants is that the Federal Reserve
Act prohibited the Reserve Banks from handling any check, the collection of which
entailed any expense, to whomsoever payable; and that their endeavor to collect
checks by presenting them at the counter of the drawee was ultra vires, because
expense was necessarily incident to that method. Another contention of appellants
is that though the Federal Reserve Bank had the lawful right to handle such checks
it was making or intending to make an oppressive use of its right, by so exercising
it as to amount to coercion or duress and with a wrongful and malicious motive.
If the Federal Reserve Bank had availed itself of the services of the complaining
banks in the remission of the proceeds of checks sent them for collection through
the mails, in view of their known usage to deduct for exchange it would have been
liable for the reasonable value of such services, except for the statutory inhibition
against it. The purpose of the bill, however, is not to collect compensation for
services rendered and to which the banks had a property right; but to compel the
Federal Reserve Bank to avail itself of services, which it was unwilling to and disabled from accepting, by restraining it from using any method which did not require
the use of such services. Complaining banks had no property right that was infringed
by the refusal of the Federal Reserve Bank to avail itself of their services in remitting
or that a court of equity could be called upon to protect. It was under no legal duty
to accept the services of the complaining banks, even had there been no statutory
obstacle to its doing so. It also had the legal right to present the checks of the com
ACTS OF STATE LEGISLATURES.
333
plaining banks to them for payment singly or in numbers over their counters and it
was the absolute duty of the complaining banks to pay the full amount of such checks
without deduction, when so presented. This is disputed by appellants only because
of the statutory prohibition against the Federal Reserve Banks paying the cost of
remission of the proceeds of checks collected by it. It is contended that this provision not only prohibited the Reserve Banks from paying exchange to remitting
banks on which the checks were drawn, but also from paying expense of any kind
or to any person for collecting checks; and that as a consequence the Federal Reserve
Banks were without power to handle any checks for collection, where such collection
was attended with expense of any kind. If so, it would follow that the endeavor to
collect checks over the counter through paid agents was within the prohibition of the
Federal Reserve Act as amended and ultra vires. Whether appellants' construction
of the prohibiting clause is correct depends upon the purpose it was intended to
subserve. Appellants' contention is that its purpose was to conserve the assets of
the Reserve Bank. Appellees' contention is that it was to aid in accomplishing a
uniform par clearance system. In view of the purpose of Congress to effect the latter
object, we think the appellees' construction is the correct one, and that the prohibition
is limited to a charge against and payment of the charge to a remitting bank, and does
not prevent the Federal Reserve Banks from expending money for collection of
checks in any other way in an endeavor to accomplish a uniform system of par clearance. It follows that the acts of the Federal Reserve Bank complained of are within
its legal powers. Conceding that they were ultra vires solely because entailing an
unauthorized disposition of the banks' assets, the appellants and intervenors, who
were neither stockholders nor creditors of the Reserve Bank, would have no standing
to complain of such a disposition, because of a collateral injury to them. The right
to make complaint on that ground would be confined to the United States or to individuals who were injured by the depletion of the banks' assets. If the purpose of
the prohibition was altogether to save expense to the Federal Reserve Banks and
if the statute evinced no policy to prevent the Reserve Banks from handling checks
of nonmembers and nondepositing banks, if it incurred no expense, the mere incidental
injury that appellants suffered from the handling of such checks would give it no
right to complain of an expenditure from which it could suffer no injury. The Federal
Reserve Act does not only not evince a purpose to deny to the Reserve Bank the power
to collect checks of nonmember and nondepositing banks, but exhibits a general
policy to encourage a uniform and universal system, of par clearance, which could
only be accomplished by conferring power upon the Reserve Bank to handle checks
drawn on all banks upon any terms that might be essential except the payment to
the remitting bank of compensation for remitting.
The appellants contend further that, even if the Federal Reserve Bank had the right
to handle checks of nonmember banks by presenting over the counter, it could not
exercise that right oppressively; that it was threatening to do so, and should therefore
have been enjoined. The prayer of the bill is not limited to an oppressive use of the
method complained of but extends to any use of it whatsoever. The bill seeks to enjoin the appellee bank "from collecting or attempting to collect any check against
petitioners or against any other bank in like condition, who may become a party hereto,
except in the usual and ordinary channel of collecting checks through correspondent
banks or clearing houses, said channels being well established and well understood
by defendants and all others familiar with the banking business." Appellants'
complaint is of the method and not of an abuse of it. The effect of the writ prayed for
would be to entirely prevent the appellee bank from collecting checks in any other
way than by transmission to the drawee bank, and the remission of the proceeds by
the drawee bank through the mails; and so to prevent their collection by presentation
over the counter even though presented regularly and without accumulation.
The right to the relief sought is also based upon the doctrine of conspiracy. An
illegal conspiracy is not predicable upon the doing of a lawful thing by lawful means,
even when done in concert or combination. The bill fails to show a concert or combination that would amount to a conspiracy in law, though its object or trie means by
which it was to be accomplished were unlawful. The acts complained of were those
of the defendant, the Federal Reserve Bank. No legal conspiracy could exist between
it and its officers, the other defendants. The amended bill charges a conspiracy
between the Federal Reserve Bank of Atlanta and the Federal Banks of other districts, upon the theory that all the Federal Reserve Banks are under control of the
Federal Reserve Board. The Federal Reserve Banks of other districts have no
power to act upon the petitioners or the intervenors. Their jurisdiction in that respect
is confined to their own districts. Being without power to injure the complaining
banks they could not be members of a conspiracy against such banks. The members
of the Federal Reserve Board are not charged as conspirators. That other Federal
334
ANNUAL REPORT FEDERAL RESERVE BOARD.
Reserve Banks had taken coercive steps against State banks in their districts to enforce
the par clearance policy, as charged on hearsay information in the amended bill, has
no bearing on the cause of action relied upon by appellants in this case. Appellants
can take nothing from the doctrine of conspiracy.
The principle that one must so use his property as not to unnecessarily and maliciously injure his neighbor, even though his act is otherwise lawful, is also invoked.
Conceding that the accumulating of checks, and their presentation, when accumulated,
with theintent to embarrass andinjure the drawee bank, might constitute an actionable
wrong and one that might be prevented by injunction; we do not think the amended
bill presents any such case. There is no specific charge in the bill of any threat to
present the checks in any accumulated or oppressive manner, on which a court of
equity would be justified in acting. Nor does the bill charge the appellee bank with
acting from a merely malicious motive if that is material. It does aver that the purpose
of the appellee was to compel the appellants to accept the lesser of two evils and to
remit at par for checks drawn upon it. If this charge was borne out by the exhibits,
which it is not, it would not constitute legal duress, on which a legal complaint could
be predicated. The exhibits show that the adoption of a system of universal par clearance was advocated in good faith by the appellee bank as a proper banking policy
and as well by Congress and the Federal Reserve Board. The adoption of appropriate
means by the appellee bank to accomplish this end can not with any propriety be attributed to malice on its part against appellants and other banks in like condition. Nor
does the adoption of the method of presenting checks over the counters of the drawee
bank imply an attempt to coerce them into becoming member or depositing banks.
The Federal Reserve Bank was interested to supply a universal clearance at par for
its member and depositing banks. It could accomplish this only by accepting from
its member and depositing banks all checks tendered it by them upon whatever banks
drawn. If drawn upon a nonmember and nondepositing bank, which refused to remit
at par, it was disabled under the statute from handling such checks through the method
of transmission of the checks and remittance of the proceeds through the mails. It
could only collect such checks by presentation in person to the drawee bank. It is
therefore reasonable to suppose that its declared purpose of making such presentations
was in furtherance of its policy of furnishing complete clearing facilities to its member
banks, and was not for the purpose of injuring or destroying the drawee banks, or of
coercing them into becoming member or depositing banks with it. It constituted
an essential step without which universal par clearance was not possible of accomplishment.
We conclude that the district court had jurisdiction and that its decree dismissing
the bill for want of equity was without error and it is therefore affirmed.
CHECK CLEARING.
335
REPLY TO SENATE RESOLUTION RELATIVE TO CHECK
CLEARING.
[66th Congress, 2d session.
Senate Document No. 184.|
LETTER FROM THE GOVERNOR OF THE FEDERAL RESERVE BOARD
TRANSMITTING, IN RESPONSE TO A SENATE RESOLUTION OF
JANUARY 19, 1920, A COMMUNICATION SUBMITTING A REPORT
AS TO ALLEGED COERCIVE MEASURES ATTEMPTED TO MAKE
STATE BANKS SUBMIT TO RULES MADE BY THE FEDERAL RESERVE BOARD OR ANY FEDERAL RESERVE BANK.
JANUARY 28, 1920.—Referred to the Committee on Banking and Currency and ordered
to be printed.
FEDERAL KESEKVE BOARD,
Washington, January 26, 1920.
The PRESIDENT OF THE SENATE,
Washington, D. C.
SIR: I have the honor to acknowledge receipt of a resolution of
the Senate of the United States, dated January 19, 1920—
Requesting the Federal Reserve Board to inform the Senate whether the board
or any Federal reserve bank, under instructions or with the consent or knowledge
of said board, has resorted to any method of coercion to compel State banks to join
the Federal reserve system, or by threats or other coercive means has attempted to
require such State banks to submit to any rules or regulations made by the Federal
Reserve Board or any Federal reserve bank.
In order that the Senate may have a full and complete understanding of the position of the board with reference to the matters upon
which it is understood information is requested in its resolution, the
board desires to submit a brief review of the development of the
system of check clearing and collection which is now in force in the
several Federal reserve districts, together with a summary of those
provisions of the law and the amendments thereto under wilich that
system has been inaugurated and operated.
Section 16 of the Federal reserve act provides, in part, that the
Federal Reserve Board—
May at its discretion exercise the functions of a clearing house for such Federal
reserve banks * * * and may also re juire each such bank to exercise the functions of a clearing house for its member banks.
In accordance with what is understood to be the purpose of this
provision of the law, the Federal Reserve Board, with the view ultimately of establishing a universal or national system of clearing
iiitersectional balances as well as bank checks and drafts, has established a gold-settlement fund through which daily clearings between
336
ANNUAL REPORT FEDERAL RESERVE BOARD.
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. The gold-settlement fund commenced
operations in May, 1915, and has proved a remarkably effective
medium for the expeditious and economical transfer of credits from
one section of the country to another, thereby forming a delicate
balance wheel tending to equalize interest rates in all sections. One
year later in May, 1916, the Federal Reserve Board issued a circular,
entitled "Check Clearing and Collection" (Exhibit A), to all member
banks stating that under authority of section 16 of the Federal
reserve act it would require each Federal reserve bank to " exercise
the functions of a clearing house for its member banks," commencing
June 15, 1916, or as soon thereafter as possible. The system was in
fact inaugurated July 15, 1916. As outlined in that original circular
the check collection facilities of each Federal reserve bank were at
first to be limited primarily to "checks drawn on all member banks,
whether in its own district or other districts," although it was stated
that—
It is proposed to accept at par all checks drawn upon nonmember banks when
such checks can be collected by the Federal reserve banks at par. * * * It is the
purpose of the federal Reserve Board to have the collection system developed so as
to embrace the collection of all checks on nonmember banks and private banks, and
while this can not be done immediately, steps will be taken to afford these facilities
as rapidly as possible.
Immediately upon the inauguration of the system, the Federal
Reserve Bank of Boston by reason of its having taken over the
Boston Country Clearing House was able to collect checks drawn
upon any bank, member or nonmember, located in New England,
and in other districts many nonmember banks agreed to remit at par
from the outset. (See press statement, July 1.8, 1916, issued by the
board three days after the check collection system commenced its
operations. Exhibit B.)
At that time—July, 1916—Federal reserve banks were expressly
required by section 16 to "receive on deposit at par from member
banks or from Federal reserve banks checks and drafts drawn upon
any of its depositors." There was no option vested in the reserve
banks. With reference to checks drawn upon nonmember banks
the boaid had been advised by its counsel that although there was
no provision of law expressly requiring a Federal reserve bank to
receive for collection checks drawn upon such banks, they might
properly do so, if they desired, in the exercise of their implied powers
conferred by that part of section 4 which authorized them to exercise
"such incidental powers as shall be necessary to carry on the business
of banking within the limitations prescribed by this act." The right
to receive checks for collection and credit is a right incidental both
to the right to receive deposits and to the right to act as a "clearing
house." In fact, all banking corporations, State and national, have
almost universally exercised the right to collect checks as an incident
to their general banking powers and without any express authority
in the law. All the more justification is there for a Federal reserve
bank to dj so, because of its express power to act as a clearing house.
But even if there were ever any doubt as to that implied power,
Congress on September 7, 1916, within three months after the inauguration of the original check collection system, amended section 13 by
an act which, among other things, expressly permitted (but did not
CHECK CLEABItfG.
337
require) Federal reserve banks to receive deposits of all " checks and
drafts payable upon presentation." So that there can be no doubt
as to the existing right of a reserve bank in its discretion to accept for
collection checks drawn upon nonmember banks as well as checks
upon member banks.
On June 21, 1917, Congress again amended the terms of section 13
by further defining the collection powers of Federal reserve banks.
The purpose of that amendment was twofold. It was, first, to permit
nonmember banks to become clearing members of the Federal reserve
bank—that is, to permit such institutions to avail themselves of the
privileges of the check collection system upon the maintenance with
the reserve bank of a deposit sufficient to offset items in transit,
without becoming regular members. That amendment was intended
primarily for those nonmember banks which were ineligible for
membership either because of a lack of sufficient capital or otherwise.
It was, second, to permit both 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 it was expressly provided that—
No such charges shall be made against the Federal reserve banks.
This amendment is commonly referred to as the Hardwick amendment and represents the last change in the law in so far as it relates to
the collection of checks.
Subsequent to its enactment the Federal Reserve Board issued the
existing regulation on "Check clearing and collection (Exhibit C), the
principal changes being those providing for the clearing of checks for
those nonmember banKs which desired to become clearing members
under the act of June 21, 1917. Paragraph (1) of this regulation
reads substantially as it did in the original circular:
Each Federal reserve bank will receive at par from its member banks and from nonmember banks in its district which have become clearing members, checks drawn on all
member and clearing member banks and on all other nonmember banks which agree
to remit at par through the Federal reserve bank of their district.
It will be noted that under the terms of this paragraph it is indicated that each Federal reserve bank will receive at par checks drawn
on all member and clearing member banks and checks on all other
nonmember banks which agree to remit at par.
Since that last amendment of Congress and the issue of the present
regulations in accordance therewith the par collection list has grown
gradually until at the present time checks on approximately 26,000
of the 30,000 banks of the country can be collected expeditiously and
economically at par for the banks and through them for the public at
large. In the development of this par list the Federal Reserve Board
has made only such efforts as it deemed consistent with both the purposes of the law and the rights of the banks in general. It has never
resorted to any method of coercion to compel State banks to join the
Federal Reserve System nor has it by threats or other coercive
means attempted to require such State banks to submit to rules or
regulations made by the Federal Reserve Board or any Federal
reserve bank. Furthermore, the board has bever instructed or knowingly consented to any Federal reserve bank's adopting such means
338
ANNUAL REPORT FEDERAL RESERVE BOARD.
in its efforts to extend its par list. Believing, however, that the
purpose of the law itself and the needs and interests of the country
as a whole would be better accommodated by the ability of the
Federal reserve banks to collect for their member and clearing member banks all checks presented to them for that purpose, the board
has consistently approved the efforts of the reserve banks to collect
all checks upon whomsoever drawn, member banks, nonmember
banks, or private banks; whether or not they agree in advance to
remit at par.
But there are only three ways in which the holder of a check,
whether an individual or a corporation, may lawfully and properly
undertake its collections: (1) He may present it in person over the
counter of the drawee bank for payment; (2) he may forward it to an
agent more conveniently located geographically for the purpose of
presentation through that agent to the drawee bank over its counter
for payment; (3) he may forward it direct to the drawee bank for
payment and remission therefor in cash or exchange.
The Federal reserve banks in the operation of their check-collection
systems have followed the third course in the case of checks drawn on
member and nonmember banks which may have agreed to remit at
par either in cash or satisfactory exchange, and whether cash or exchange is remitted the Federal reserve banks have generally provided
postage or necessary costs of transportation covering the shipment to
the reserve bank. Because of the fact, however, that the so-called
Hardwick amendment to section 13 not only prohibits a bank
charging but also prohibits the Federal reserve bank paying a
charge for the "payment or collection of checks and drafts and
remission therefor by exchange or otherwise/' Federal reserve banks
have been impelled to forego the collection of checks in this manner
in any case where the drawee bank does not care to remit at par. (See
Opinions of the Attorney General of the United States, Exhibits D
and E.) The only other available means of making the collection is
to employ some suitable agent for that purpose. Not to adopt that
means would necessitate a flat refusal by the reserve bank to handle
the item for collection in any manner, and the board and the reserve
banks feel that that would now be an evasion of one of the ultimate
purposes for which the law was enacted; that is, the establishment of a
universal country wide par-collection system and the resultant elimination of the burdensome delays and expenses incident to the old
indirect routing system. In this connection the attention of the
Senate is respectfully directed to a copy of a form letter which was
sent by the Federal Reserve Board to nonmember banks and other
parties interested denning the questions of law and policy involved in
the matter of collecting all checks at par (Exhibit F).
When the par-collection system was first put into effect, it was impossible for practical reasons to undertake the collection of all checks
drawn on nonmember banks, but now that there are relatively so few
of those banks not on the par list the reserve banks are able usually
to effect the collection of their checks by means of appropriate
agents. There is no longer any reasonable excuse for refusing to
handle such items for member and clearing-member banks wherever
collection by means of an agent is practicable. This agent may be a
member bank located in the same city as the drawee bank or possibly
a nonmember bank, an express company, or any other suitable person
CHECK CLEARING.
339
or corporation able to make the collection over the counter of the
drawee bank.
The reserve banks in extending their collection facilities to include
the checks of those nonmember banks which have declined to remit
at par have generally, by letter or in person, undertaken to explain
that the reserve banks could no longer decline to handle checks drawn
upon those nonmember banks, and that inasmuch as they did not care
to remit at par and inasmuch as the reserve bank could not lawfully pay exchange, it would be necessary to make their collections in
the only other way legally possible over the counter either in cash or
suitable exchange. But this explanation by the reserve bank has
always been intended to be an expression of regret, not a threat—as
some few banks have been only too glad to construe it. (Typical
forms of letters used by the Federal reserve banks in this connection
are attached hereto as Exhibit G.)
So far as the Federal Reserve Board is aware, the Federal reserve
banks themselves have never been anything other than both patient
and considerate in explaining the necessity for exercising what is after
all an undisputed legal right to ask for payment over the counter—an
inherent right in the holder of any check or bank draft. If in some
few instances an agent of a reserve bank has, through an excess of zeal,
adopted any other attitude in his efforts to procurre par members or
in explaining the unavoidable alternative that must be adopted by the
reserve bank in the event that the nonmember bank does not want to
remit at par, it has been without the authority or consent of either the
Federal Reserve Board or the Federal reserve banks themselves.
It has been alleged that some of the reserve banks have intentionally held up items drawn on a nonmember bank for the purpose of
presenting them in bulk and demanding payment in cash so as to
embarrass the drawee bank and thus compel it to remit at par. In
order fully to advise the Senate on this particular matter the Board,
upon receipt of the Senate's resolution, telegraphed to each Federal
reserve bank (Exhibit H) specifically requesting to be advised
whether or not such methods had been employed, and if so with
what purpose. The replies of the several reserve banks are attached
hereto (Exhibit I).
In this connection the attention of the Senate is respectfully
directed particularly to the reply of the Federal Reserve Bank of
Kansas City. This telegram, it is believed, indicates the obstacles
which were arbitrarily placed in the way of the Federal reserve bank
in the making of its collections in the more usual manner and explains
to some extent the reason that the Federal reserve bank in that
instance was impelled to send its own agents at stated intervals to
make the necessary collection of items which had been forwarded
to it by its member banks. While that telegram from the Federal
Reserve Bank of Kansas City, as well as the replies from the Federal
reserve banks of Dallas, Minneapolis, and Chicago indicate that in a
few instances they have accumulated cheeks when collecting through
an agent, it has never been for the purpose of embarrassing the
drawee bank, but has been done solely in pursuance of a practice
generally followed by large commercial banks in various parts of the
country either on account of the physical difficulty of sending a
daily messenger or because of the relatively high overhead charge
in sending a messenger to collect a small check. J3ut even instances
340
ANNUAL REPORT FEDERAL RESERVE BOARD.
of that nature were reported by only 4 of the 12 Federal reserve banks and are not general practices in the case of those 4.
The replies of the banks themselves are explanatory of their purpose.
In conclusion the Federal Reserve Board desires to state that the
development of the Federal reserve par collection system has been
the result of the most conscientious and painstaking thought and
efforts of the board and officers of the several Federal reserve banks
with the sole purpose not of compelling a relatively few unwilling
State banks to become clearing members but of affording to the
great majority of banks in the country the member and clearing
member banks, now over 26,000 out of approximately 30,000, a
complete and effective system of check collection involving a minimum of effort, time, and expense, a system whose facilities are now
offered free of charge to the banks of the country and through them
to the public at large. The burden that some banks have in the
past put upon the commerce of the country through arbitrary and
excessive exchange charges does not need comment.
That a relatively small number of nonmember banks should not
want to become members of the clearing system or should not want
to remit at par is, of course, their own concern and the Federal
Reserve Board and the Federal reserve banks have not and will not
dispute their right to decline to do so. But that those same few
nonmember banks, which through their member bank correspondents
are able to obtain the benefits of the par collection system gratis,
should decline to become clearing members can not and should not
deter the Federal reserve banks in the exercise of their undouted
legal right—the right to collect over the counter in cash or satisfactory exchange, by means of an agent, checks drawn upon a bank
which for one reason or another does not care to remit at par for
checks mailed to it directly.
The Federal Reserve Board submits this report of the steps taken
by it to put into effect these provisions of the Federal reserve
act which they believe will in time prove to be one of its greatest,
benefits—a universal country-wide system of par check collections
scientifically conceived by Congress and expeditiously and economically operated by the Federal reserve banks in the interest of
the country at large without discrimination in favor of any one class
or classes.
Respectfully submitted.
W. P. G. HARDING, Governor.
EXHIBIT A.
CIRCULAR NO. 1.
SERIES OF 1916
FEDERAL RESERVE BOARD,
Washington, May 1, 1916.
CHECK CLEARING AND COLLECTION.
To MEMBER BANKS: The Federal Reserve Board is empowered, under section 16
of the Federal reserve act, to require each Federal reserve bank to—
"Exercise the function of a clearing house for its member banks."
After very thorough investigation and many conferences with the governors of
Federal reserve banks on this subject, the Federal Reserve Board has determined
to exercise its authority and to offer to the member banks, and through them to the
public, the machinery of the Federal reserve banks for the operation of a check collection and clearing system which it is believed, with the cooperation of member
CHECK CLEARING.
341
banks, will afford a direct, expeditious, and economical system of check collecting
and settlement of balances.
The date for the inauguration of this system is expected to be June 15, 1916, or as
soon thereafter as the Federal reserve banks can complete preparations for undertaking this work.
Member banks in each district will in due course receive from their Federal reserve
bank full information as to the terms and all necessary details of the arrangements
but for the information of all concerned the general terms may be stated to be as
follows:
(1) In order that no inconvenience may be experienced the plan will follow as
closely as practicable the practice which long experience has developed between
country banks and their reserve city correspondents.
Eacn Federal reserve bank will receive at par from its member banks checks drawn
on all member banks, whether in his own district or other districts. It is also proposed to accept at par all checks drawn upon nonmember banks when such checks
can be collected by the Federal reserve banks at par.
Each Federal reserve bank will receive at par from other Federal reserve banks
checks drawn upon all member banks of its district and upon all nonmember banks
whose checks can be collected at par by the Federal reserve bank.
It is the purpose of the Federal Reserve Board to have the collection system developed so as to embrace the collection of all checks on nonmember banks and private
banks, and while this can not be done immediately, steps will be taken to afford
these facilities as rapidly as possible. The Federal reserve banks will prepare a
par list of all nonmember banks, to be revised from time to time, which will be furnished to member banks.
Immediate credit entry upon receipt subject to final payment will be made for
all such items upon the books of the Federal reserve bank at full face value, but
the proceeds will not be counted as reserve nor become available to meet checks
drawn until actually collected, in accordance with the best practice now prevailing.
(2) Checks received by a Federal reserve bank on its member banks will be forwarded direct to such member banks and will not be charged to their accounts until
advice of payment has been received or until sufficient time has elapsed within
which to receive advice of payment.
(3) In the selection of collecting agents for handling checks on nonmember banks
member banks will be given the preference.
(4) Under this plan Federal reserve banks will receive at par from their member
banks checks on all member banks, and on nonmember banks whose checks can be
collected at par by any Federal reserve bank. Member banks will be required by
the Federal Reserve Board to provide funds to cover at par all checks received from,
or for the account of, their Federal reserve banks: Provided, however, l h a t a member
bank may ship lawful money or Federal reserve notes from its own vaults at the expense of its P ederal reserve bank to cover any deficiency which may arise because
of and only in the case of inability to provide items to oftset checks received from or
for the account of its Federal reserve bank.
(5) Section 19 of the Federal reserve act provides that—
' T h e reserve carried by a member bank with a Federal reserve bank may, under
the regulations, and subject to such penalties as may be prescribed by the Federal
Reserve Board, be checked against and withdrawn by such member bank for the
purpose of meeting existing liabilities: Provided, houever, That no bank shall at any
time make new loans or shall pay any dividends unless and until the total reserve
required by law is fully restored."
It is manifest that items in process of collection can not lawfully be counted as
reserve either by a member bank or by a Federal reserve bank. Therefore, should a
member bank draw against such items the draft would be charged against its reserve
if such reserve were sufficient in amount to pay it; but any resulting impairment of
reserves would be subject to all the penalties provided by the act.
Inasmuch as it is essential that the law in respect to the maintenance of required
reserves by member banks shall be strictly complied with, the Federal Reserve
Board will fix a penalty to be imposed upon member banks for encroaching upon
their reserves.
Member banks can at all times arrange to keep their reserves intact by rediscounting
with their Federal reserve bank.
(6) Each Federal reserve bank will determine by analysis the amounts of uncollected funds appearing on its books to the credit of each member bank. Such analysis
will show the true status of the reserve held by the Federal reserve bank for each
member bank and will enable it to apply the penalty for impairment of reserve.
A schedule of the time required within which to collect checks will be furnished
to each member bank to enable it to determine the time at which any item sent to
342
ANNUAL REPORT FEDERAL RESERVE BOARD.
its Federal reserve bank will be counted as reserve and become available to meet
any checks drawn.
(7) In handling items for member banks, a Federal reserve bank will act as agent
only. It will require that each member bank authorize it to send checks for collection to banks on which checks are drawn, and, except for negligence, will assume no
liability. .Any further requirements that the board may deem necessary will be set
forth by the Federal reserve banks in their letters of instruction to their member
banks.
(8) The cost of collecting and clearing checks must necessarily be borne by the
banks receiving the benefit and in proportion to the service rendered. An accurate
account will be kept by each reserve Ifank of the cost of performing this service and
the Federal Reserve Board will, by rule, fix the charge, at so much per item, which
may be imposed for the service of clearing or collection rendered by the reserve banks,
as provided in section 16 of the Federal reserve act.
CHARLES S. HAMLIN,
Governor.
SHERMAN ALLEN,
Asristant
Secretary.
EXHIBIT B.
PRESS STATEMENT.
JULY 18, 1916.
The Federal Reserve Board gave out the following statement to-day:
"The new country-wide clearing system was inaugurated on July 15 in all the
Federal reserve banks. Reports as of the close of business on July 17 show that the
operations started out in a very satisfactory manner, and it is especially gratifying to
the board to record the cordial cooperation of banks and bankers. The public doubtless understands that through this method all national banks and all State banks
which are members of the Federal Reserve System have the privilege of using the
Federal reserve banks as clearing houses for the clearing and collection of checks.
Not only may checks drawn against other member banks be collected at par, but
checks drawn against most nonmember banks can also be so collected at a minimum
of expense to the depositing bank.
"The Boston district, by reason of having taken over the Boston Country Clearing
House, was able to make the most nattering exhibit, so that in New England checks
drawn against a bank, whether member or nonmember, are collected at par without
exception. In the other districts there is no difficulty in collecting checks at par,
even when drawn against nonmember State banks, provided there are national banks
in the same city or town. There is more difficulty where these State banks are located
in towns where there are no national or other member banks, but even in these cases,
the reports in the hands of the board show that a very large percentage of nonmember
State banks have agreed to remit at full face value through the Federal reserve banks.
"Some time must necessarily elapse before the new collection system will be used
to its capacity, but the Federal Reserve Board believes confidently that the country
has now witnessed the inauguration of the most effective check collection system that
has ever been devised, and that each passing week will add to the use and appreciation of the system by the banking and business communities of the country.
CHECK CLEARING.
343
EXHIBIT C.
REGULATION J.
SERIES OF 1917.
(Superseding Regulation J of 1916.)
CHECK CLEARING AND COLLECTION.
Section 16 of the Federal reserve act authorizes the Federal Reserve Board to require
each Federal reserve bank to exercise the function of a clearing house for its member
banks, and section 13 of the Federal reserve act, as amended by the act approved
June 21, 1917, authorizes each Federal reserve bank to receive from any nonmember
bank or trust company, solely for the purposes of exchange or of collection, deposits
of current funds in lawful money, national-bank notes, Federal reserve notes, checks,
and drafts payable upon presentation, or maturing notes and bills, provided such
nonmember bank or trust company maintains with its Federal reserve bank a balance
sufficient to offset the items in transit held for its account by the Federal reserve bank.
In pursuance of the authority vested in it under these provisions of law, the Federal
Reserve Board, desiring to afford both to the public and to the various banks ot the
country a direct, expeditious, and economical system of check collection and settlement of balances, has arranged to have each Federal reserve bank exercise the functions of a clearing house for such of its member banks as desire to avail themselves of
its privileges and for such State banks and trust companies as may maintain with the
Federal reserve bank a balance sufficient to qualify it as a clearing member under
the provisions of section 13.
Each Federal reserve bank shall exercise the functions of a clearing house under
the following general terms and conditions:
(1) Each Federal reserve bank will receive at par from its member banks and from
nonmember banks in its district which have become clearing members, checks 1
drawn on all member and clearing member banks and on all other nonmember banks
which agree to remit at par through the Federal reserve bank of their district.
(2) Each Federal reserve bank will receive at par from other Federal reserve banks
and will receive at par from all member and clearing member banks, regardless of
their location, for the credit of their accounts with their respective Federal reserve
banks, checks drawn upon all member and clearing member banks of its district and
upon all other nonmember banks of its district whose checks can be collected at par
by the Federal reserve bank. The Federal reserve banks will prepare a par list of
all nonmember banks, to be revised from time to time, which will be furnished to
member and clearing member banks.
(3) Immediate credit entry upon receipt subject to final payment will be made
for all such items upon the books of the Federal reserve bank at full f>ace value, but
the proceeds will not be counted as part of the minimum reserve nor become available td meet checks drawn until actually collected, in accordance with the best
practice now prevailing.
(4) Checks received by a Federal reserve bank on its member or clearing member
banks will be forwarded direct to such banks and will not be charged to their accounts
until sufficient time has elapsed within which to receive advice of payment.
fM In the selection of collecting agents for handling checks on nonmember banks,
which have not become clearing members, member banks will be given the preference.
(6) Under this plan each Federal reserve bank will receive at par from its member
and clearing member banks checks on all member and clearing member banks and
on all other nonmember banks whose checks can be collected at par by any Federal
reserve bank. Member and clearing member banks will be required by the Federal
1
A check is generally defined as a draft, or order upon a bank or order upon a bank or banking house
purporting to be drawn upon a deposit of funds, for the payment at all events of a certain sum of money
to a certain person therein named, or to him or his order, or to bearer, and payable instantly on demand.
45525°—21
23
344
ANNUAL REPORT FEDERAL RESERVE BOARD.
Reserve Board to provide funds to cover at par all checks received from or for the account of their Federal reserve banks: Provided, however, That a member or clearing
member bank may ship currency or specie from its own vaults at the expense of its
Federal reserve bank to cover any deficiency which may arise because of and only
in the case of inability to provide1 items to offset checks received from or for the account of its Federal reserve bank.
(7) Section 19 of the Federal reserve act provides that—
"The required balance carried by a member bank with a Federal reserve bank may,
under the regulations and subject to suqh penalties as may be prescribed by the
Federal Reserve Board, be checked against and withdrawn by such member bank for
the purpose of meeting existing liabilities: Provided, however, That no bank shall at
any time make new loans or shall pay any dividends unless and until the total balance
required by law is fully restored."
It is manifest that items in process of collection can not lawfully be counted as
part of the minimum reserve balance to be carried by a member bank with its Federal
reserve bank. Therefore, should a member bank draw against such items the draft
would be charged against its reserve balance if such balance were sufficient in amount
to pay it; but any resulting impairment of reserve balances would be subject to all
the penalties provided by the act.
Inasmuch as it is essential that the law in respect to the maintenance by member
banks of the required minimum reserve balance shall be strictly complied with, the
Federal Reserve Board, under authority vested in it by section 19 of the act, hereby
prescribes as the penalty for any deficiency in reserves a sum equivalent to an interest
charge on the amount of the deficiency of 2 per cent per annum above the 90 day discount rate of the Federal reserve bank of the district in which the member bank is
located. The board reserves the right to increase this penalty whenever conditions
require it.
For the purpose of keeping their reserve balances intact member banks may at all
times have recourse to the rediscount facilities offered by their respective Federal
reserve banks.
(8) Each Federal reserve bank will determine by analysis the amounts of uncollected funds appearing on its books to the credit of each member bank. Such analysis
will show the true status of the reserve held by the Federal reserve bank for each
member bank and will enable it to apply the penalty for impairment, of reserve.
A schedule of the time required within which to collect checks will be furnished
to each bank to enable it to determine the time at which any item sent to its Federal
reserve bank will be counted as reserve and become available to meet any checks
drawn.
(9) In handling items for member and clearing member banks, a Federal reserve
bank will act as agent only. The board will require that each member and clearing
member bank authorize its Federal reserve bank to send checks for collection to banks
on which checks are drawn, and, except for negligence, such Federal reserve bank will
assume no liability. Any further requirements that the board may deem necessary
will be set forth by the Federal reserve banks in their letters of instruction to their
member and clearing member banks. Each Federal reserve bank will also promulgate rules and regulations governing the details of its operations as a clearing house,
such rules and regulations to be binding upon all member and nonmember banks
which are clearing through the Federal reserve bank.
(10) The cost of collecting and clearing checks must necessarily be borne by the
banks receiving the benefit and in proportion to the service rendered. An accurate
account will be kept by each reserve bank of the cost of performing this service and
the Federal Reserve Board will, by rule, fix the charge, at so much per item, which
may be imposed for the service of clearing or collection rendered by the reserve banks,
as provided in section 16 of the Federal reserve act.
1
In accordance with instructions issued by the Federal Reserve Board on Apr. 24, 1917, the various
Federal reserve banks have issued circulars setting forth the conditions under which their respective member banks may draw drafts on their reserve bank accounts payable with or through any other Federal
reserve bank.
CHECK CLEARING.
345
EXHIBIT D.
MARCH 21,
1918.
SIR: YOU have requested my opinion as to whether the limitations contained in
section 13 of the Federal reserve act relating to charges for the collection and payment of checks can be held to apply to State banks which are neither members of the
Federal Reserve System nor depositors in Federal reserve banks.
As originally enacted, the first paragraph of section 13 reads 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 upon solvent member banks, payable upon
presentation, or, solely for exchange purposes, may receive from other Federal reserve
banks deposits of current funds in lawful money, national-bank notes, or checks and
drafts upon solvent member or other Federal reserve banks, payable upon presentation."
In section 16, apparently as the basis of a system of check clearing or collection, it
is provided that Federal reserve banks shall receive on deposit at par checks and drafts
on member and other Federal reserve banks; and the Federal Reserve Board is authorized to fix by rule t h e charges to be collected by member banks from patrons whose checks
are cleared through the Federal reserve bank any charge for t h e service of clearing or
collection rendered by the Federal reserve bank.
It will be noted that under the first paragraph of section 13 in its original form the
only classes of banks which might be depositors in and thus clear through a Federal
reserve bank were its member banks and other Federal reserve banks, and the only
checks and drafts specified as receivable on deposit were checks and drafts drawn
upon member banks or upon other Federal reserve banks.
The acts of September 7, 1916, and June 21, 1917, so amended the first paragraph
of section 13 as to extend the clearing and collection facilities of the Federal Reserve
System to include checks and drafts generally, to make these facilities directly available to nonmember banks, and to establish the limitations as to charges referred to in
the question submitted. The paragraph as so amended reads as follows:
346
ANNUAL REPORT FEDERAL RESERVE BOARD.
"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; or, solely for purposes of exchange or of collection, may receive from other Federal reserve banks deposits of current funds in lawful money, national-bank notes, or checks upon other Federal reserve banks, and
checks and drafts, payable upon presentation within its district, and maturing notes
and bills payable within its district; or, solely for the purposes of exchange or of collection, may receive from any nonmember bank or trust company deposits of current
funds in lawful money, national-bank notes, Federal reserve notes, checks, and drafts
payable upon presentation, or maturing notes and bills: Provided, Such nonmember
bank or trust company maintains with the Federal reserve bank of its district a balance sufficient to offset the itemp in transit held for its account by the Federal reserve
bank: Provided further, That nothing in this or any other section of this act shall be
construed as prohibiting a member or nonmember bank from making 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 b y
exchange or otherwise; but no such charges shall be made against the Federal reserve
banks." [Italics mine.]
The limitations as to charges referred to in the question submitted are contained
in the second proviso quoted above. This proviso, apparently recognizing an existing right of member and nonmember banks to make reasonable charges for the collection or payment of checks and drafts and remission therefor by exchange or otherwise
provides (1) that these charges are "to be determined and regulated by the Federal
Reserve Board, but in no case to exceed 10 cents per $100," but (2) that "no such
charges shall be made against the Federal reserve banks."
Clearly these limitations apply to national banks, which are compelled to be
member banks, to such State banks as become member banks by voluntarily accepting the terms and provisions of the Federal reserve act, and to such oth^r State banks
as do not become member banks but by becoming depositors in Federal reserve
banks upon the conditions specified avail themselves directly of the facilities of the
Federal reserve clearing system.
The specific question to be determined is whether these limitations apply to nonmember State banks which do not become depositors but checks upon which may
pass through Federal reserve banks in process of clearing or collection.
The theory and scheme of the Federal reserve legislation seems inconsistent with
the purpose on the part of Congress to subject State banks against their will to Federal
control or regulation. State banks are not compelled to become members of the
Federal reserve system or depositors therein. Those possessing the necessary qualifications are, however, invited to become members. They are not only free to accept
or decline, but if they accept remain at liberty to withdraw from the system. (9fec. 9.)
By section 13 as amended, State banks not desiring to become members or too small
to be eligible for membership are likewise invited to share in the clearing and collection facilities of the system by becoming depositors in Federal reserve banks. But
they may accept or reject the invitation, and if they become depositors may close
their accounts at their pleasure.
It would accordingly seem that the limitations referred to ought not to be regarded
as intended to be imposed upon State banks not connected with the Federal reserve
system as members or depositors, against the will of such banks, unless that intention
clearly appears.
The term "nonmember bank" as used in the proviso may reasonably be construed as referring to a nonmember bank that has become a depositor as authorized
in the preceding provisions of the paragraph. If this term is so construed, obviously
the provision requiring charges "to be determined and regulated by the Federal
Reserve Board, but in no case to exceed 10 cents per $100," will have no application
to nonmember State banks which are not depositors in a Federal reserve bank. The
broad language of the concluding clause, "no such charges shall be made against
the Federal reserve banks," may be construed not as directed against State banks
which are not depositors, but merely as specifying a condition upon which checks
may clear through the Federal reserve banks—in effect a prohibition against the
payment of such charges by the Federal reserve banks.
Under this construction, member banks and. nonmember banks which are depositors in the Federal reserve banks will be subject to the limitations in the proviso,
but nonmember banks which are not depositors will not be subject to the limitations.
All, however, will have to adjust their charges among themselves and with their
own depositors, the Federal reserve banks being prohibited from paying such charges.
CHECK CLEARING.
347
This construction seems to be in harmony with the intention of the framers of the
amendment to section 13 embodying the above-mentioned proviso.
The act of June 21, 1917, amending section 13 and other sections of the Federal
reserve act, as originally introduced in both the House and Senate contained no part
of the (second) proviso, the section in the proposed amended form ending with the
preceding proviso. The Senate, adopting an amendment offered by Senator Hardwick, added the second proviso in the following form:
11
Provided further, That nothing in this or any other section of this act shall be construed as prohibiting a member or nonmember bank from making reasonable charges,
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." (55 Cong. Rec, 2065.)
It was thought the effect of the Hard wick amendment would be to recognize the
right of any bank upon which checks are drawn to make charges against the Federal
reserve bank through which such checks might be cleared or collected. The Hardwick amendment was opposed by the Federal Reserve Board, as appears from letters
from its governor to Senator Owen and Congressman Glass, chairmen of the respective
Committees on Banking and Currency of the Senate and House (pp. 2071, 3795).
The President also called attention to the seeming effect of the amendment in a letter
to Senator Owen, reading as follows:
" I have been a good deal disturbed to learn of the proposed amendment to the
Federal reserve act which seems to contemplate charging the Federal reserve banks for
payment of checks cleared by them, or charging the payee of such checks passing through
the reserve banks with a commission. I should regard such a provision as most unfortunate and as almost destructive of the function of the Federal reserve banks as a
clearing house for member banks, a function which they have performed with so much
benefit to the business of the country.
I hope most sincerely that this matter may be adjusted without interfering with
this indispensable clearing function of the banks" (p. 4083).
In conference, apparently as the result of the letters of the governor of the Federal
Reserve Board and the President, the proviso took its present form, two changes being
made by the conferees: First, the charges which member or nonmember banks may
make were made subject "to be determined and regulated by the Federal Reserve
Board "; and, second, the final clause was added,"but no such charges shall be made
against the Federal reserve banks."
In presenting the conference report to the Senate, Senator Owen emphasized the
importance of not interfering with the clearing functions of the Federal reserve banks,
explained that under the proviso as amended "the banks can charge each other for
making these accommodations if they like, and they can adjust that to their own satisfaction with one another without troubling the reserve banks," and apparently conceded that State banks not connected as members or depositors with the Federal
Reserve System could not be subjected to Federal legislation (p. 4083).
Mr. Glass in presenting the report to the House, said:
"The Congress has no control whatsoever over nonmember banks. It can not regulate their charges and will not regulate them if this Hardwick amendment should prevail. * * * This House has no control over the nonmember bank in this matter.
Even the Federal Reserve Board has no control over their operations unless they voluntarily join the voluntary collection system established by the Federal Reserve Board''
(p. 3794).
And further, "no nonmember bank that does not voluntarily join the collection system established by the Federal Reserve Board will be specifically affected. No law that
we pass here can directly affect them. The only way they can be affected is incidental" (p. 3795).
It thus seems clear that the proviso was understood by Congress as designed to
protect the clearing functions of the Federal reserve banks and not directed at State
banks which have no connection as members or depositors with the Federal Reserve
System and upon which it was considered the effect of the proviso could be only
incidental.
It may be argued, and is probably true, that the proviso will necessarily affect the
practice of State banks, though not members or depositors, as to making charges for
the payment of checks drawn upon them. With the concentration of reserve balances
in Federal reserve banks as required by the Federal reserve act, the Federal reserve
clearing system may offer the only adequate and convenient facilities for clearing or
collecting checks drawn upon banks at a distance, and depositors may find it inadvisable to maintain accounts with banks upon which checks can not be cleared or
collected by the use of these facilities.
348
ANNUAL REPORT FEDERAL RESERVE BOARD.
The Federal reserve act, however, does not command or compel these State banks
to forego any right they may have under the State laws to make charges in connection
with the payment of checks drawn upon them. The act merely offers the clearing
and collection facilities of the Federal reserve banks upon specified conditions. If
the State banks refuse to comply with the conditions by insisting upon making
charges against the Federal reserve banks, the result will simply be, so far as the
Federal reserve act is concerned, that since the Federal reserve banks can not pay
these charges they can not clear or collect checks on banks demanding such payment
from them.
From what has been said it follows that in my opinion the limitations contained in
section 13 relating to charges for the collection and payment of checks do not apply
to State banks not connected with the Federal Reserve System as members or depositors.
Checks on banks making such charges can not, however, be cleared or collected
through Federal reserve banks.
Respectfully,
(Signed)
T. W. GREGORY, Attorney General.
The
PRESIDENT,
The White House.
EXHIBIT E.
APRIL 30,
1918.
MY DEAR GOVERNOR: I acknowledge receipt of your letter of the 19th instant with
reference to my opinion of March 21, 1918, holding that Federal reserve banks are
prohibited from paying the charges for collection and payment of checks and drafts
mentioned in the first paragraph of section 13 of the Federal reserve act.
In a memorandum by the general counsel of the American Bankers Association,
which you inclose, the point is raised that the prohibition against the charges referred
to must be confined to checks owned by the Federal reserve bank as distinguished from
checks deposited to be cleared or collected for the account of a member or depositor.
You ask to be advised whether the board correctly interprets my opinion as implying
that no such distinction can be recognized and that no member bank can under any
circumstances make any charge against its Federal reserve bank in connection with
the collection or payment of checks deposited with the Federal reserve bank as provided in the paragraph mentioned.
The reason for the suggested distinction is not apparent. I do not understand why
checks deposited with a Federal reserve bank to be cleared or collected can not be
considered as owned by the bank.
As the basis of the check-clearing system contemplated by the Federal reserve act,
the Federal reserve banks are required by section 16 to "receive on deposit at par,"
unconditionally, the checks therein specified drawn on Federal reserve and member
banks. If the phrase "receive on deposit" is given its ordinary signification, it seems
clear that the Federal reserve bank becomes the owner of the checks so deposited, title
to the checks passing to that bank and the depositors receiving immediate credit
therefor. (Burton v. United States, 196 U. S., 283; Security National Bank v. Old
National Bank, 241 Fed., 1, and cases therein cited at pages 10 to 12.)
The first paragraph of section 13, as amended to extend the clearing facilities of the
Federal reserve banks to nonmember banks and to include checks generally, requires
each nonmember bank availing itself of these facilities to maintain with the "Federal
reserve bank of its district a balance sufficient to offset the items in transit held by the
Federal reserve bank." As so amended, the paragraph may be regarded as at least
authorizing the Federal reserve abnk to receive on deposit from nonmember depositors
as well as from member banks all classes of checks to be cleared or collected, taking the
title thereto and giving credit therefor to the depositing banks.
As a Federal reserve bank may thus become the owner of all the checks cleared or
collected through it, there appears to be no basis in the act for drawing a distinction
between checks owned by the Federal reserve bank and checks deposited with it to
be cleared or collected.
But even if the checks received could be classified on the basis suggested, the
language of the paragraph seems to preclude the idea of excluding checks deposited
to be cleared or collected from the checks as to which charges are prohibited.
The charges which the Federal reserve banks are prohibited from paying by the
final clause, "no such charges shall be made against the Federal reserve banks," obviously include the " charges * * * for collection or payment of checks and drafts
and remission therefor by exchange or otherwise" mentioned in the preceding clause.
The checks authorized by the paragraph to be deposited with the Federal reserve
bank, upon being received by that bank, are to be collected from and paid by the
banks upon which they are drawn. To say that charges in connection with the pay
CHECK CLEARING.
349
ment of these checks made by the banks drawn upon and collected from the Federal
reserve bank are not made against that bank seems to do violence to the ordinary
meaning of the words used, regardless of whether the charges are ultimately borne
by it or subsequently transferred to the banks by which the checks were deposited.
Moreover, the legislative history of the amendment as referred to in the opinion
shows clearly that the prohibition was directed primarily against the making of cha/ges
in connection with the clearing of checks. It was a proposed amendment to the Federal reserve act, which apparently contemplated "charging the Federal reserve banks
for payment of checks cleared by them " that the President opposed in his letter to
Senator Owen. And it was to prevent the possibility of such charges being made
that the final clause was added, which, as explained by Senator Owen, prevented
"troubling the reserve banks" or "interfering with the clearing of checks at par by
the reserve banks." (55 Cong. Rec, p. 3761.)
I construe the first paragraph of section 13 as prohibiting member banks under any
circumstances from making the charges therein referred to against Federal reserve
banks.
You are accordingly advised that the interpretation placed by the board upon my
opinion of March 21 is correct.
Respectfully,
(Signed)
T. W. GREGORY,
Attorney General.
Hon.
W. P. G. HARDING,
Governor Federal Reserve Board, Washington, D. C.
EXHIBIT F.
FEDERAL RESERVE BOARD,
Washington, December 11, 1919.
Subject: Questions of law and policy involved in matter of collecting all checks at
par.
DEAR SIR: In view of complaints which are being made from time to time concerning the policy of Federal reserve banks in collecting checks on all points in their
respective districts at par, there is inclosed for your information a copy of a letter
which was sent to a protesting nonmember bank in one of the districts, which defines
the questions of law and policy involved.
Very truly, yours,
GOVERNOR.
To CHAIRMEN AND GOVERNORS OF ALL FEDERAL RESERVE BANKS.
DEAR SIR: Receipt is acknowledged of your letter of the
in which you protest against the policy which has been adopted by the Federal reserve banks with
the approval of the Federal Reserve Board in the matter of the collection of checks
which are received by Federal reserve banks from their member banks or form nonmember banks which maintain clearing or collection accounts with them.
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 depositors." 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 call 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 per
350
ANNUAL REPORT FEDERAL RESERVE BOARD.
missive there seems to be no question that the Tederal 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 ita
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 consumated 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 authorizating 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 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 alike, and it is making an earnest endeavor
to carry out the laws as construed by the highest legal authority of the administrative
branch of the Government.
EXHIBIT G.
FIRST LETTER TO THE NONMEMBER BANK.
GENTLEMEN: YOU are doubtless aware of the fact that we have in the past been
obliged to refuse to handle checks on your bank for the reason that we have not had a
par arrangement with you.
Federal reserve banks can not handle checks on banks under any arrangements
which would cantemplate the paying of exchange because, under the Attorney
General's interpretation of the law, they are not, under any circumstances, permitted
to pay exchange.
Our declining to handle checks drawn by your depositors has not in any case been
intended as a reflection on your bank and we believe that you have not so considered it.
CHECK CLEARING.
351
The campaign conducted by the Federal reserve banks for the addition of new pai
points has reached such a stage that we do not feel-justified in any longer refusing to
handle checks on banks located in what we must consider as being par territory.
We would advise, therefore, that on and after November 15, we will discontinue
refusing to handle checks on you, but will receive at par such checks as are offered
to us and will forward them to you in our regular cash letters, accompanied by stamped,
addressed envelopes for such convenience in making returns. Remittance should,
in all cases, be made in
exchange or its equivalent at par.
We trust that this will meet with your approval and that we may receive your early
advice to the effect that we may expect your cooperation in this important movement.
SECOND LETTER TO THE NONMEMBER BANK.
GENTLEMEN: Referring to our letter of November 28, we would say that we are
to-day in receipt of checks on you which we have received at par in accordance with
the Federal reserve act.
These checks are being forwarded to you to-day in one of our regular cash letters
accompanied by stamped, addressed envelope for your convenience in making returns.
We anticipate par remittance in
exchange or its equivalent and hope that
we may receive your assurance that you will continue to remit at par for all checks
drawn by your depositors which we may receive and forward to you in the usual course
of business.
THIRD LETTER TO NONMEMBER BANK.
GENTLEMEN; We are in receipt of your remittance covering our cash letter of January 14, total $1,549.22 and note your deduction of $2.32 exchange.
Practically all of the banks in
have already agreed to remit to us at par for
checks drawn by their depositors, received by us and forwarded in the usual course
of business and we were hoping that the bank of
, would also agree to cooperate
with us in this important movement.
We can not in justice to the great number of par banks in your vicinity decline to
handle checks drawn on you, and since we are not permitted to pay exchange it
necessarily follows that we must arrange to collect them at par.
If we can not obtain a direct connection with your good bank, we will be obliged to
make collection through other channels.
We request therefore that hereafter if you can not remit at par, you be good
enough to certify and return to us such checks as are forwarded to you in our
cash letters.
[Telegram.]
FEDERAL RESERVE BOARD,
Washington, January 20, 1920.
GOVERNOR OF ALL FEDERAL RESERVE BANKS:
Under a resolution adopted by the Senate yesterday Board is required to inform
the Senate whether Federal Reserve Board or any Federal reserve bank under instructions or with consent of knowledge of board has resorted to any method of coercion to
compel State banks to join Federal reserve system, or by threats or other coercive
means has attempted to require such State banks to submit to any rules or regulations
made by Federal Reserve Board or any Federal reserve bank. This is result of complaints made to Senates by State banks of efforts of Federal reserve banks to collect
checks at par. Specific charge is made that Federal reserve banks hold back checks
on small banks until they amount to considerable sums, then send messenger to make
personal demand for payment in currency in order to embarrass payee bank and
compel it to submit. Has such action been taken by your bank and if so, was it
done with object of embarrassing payee bank or merely to reduce percentage cost of
collection? Is it not the usual practice of larger banks in your district when they
collect on nonmember banks by sending items direct to avail themselves of lower
charges by holding back small items until they have round amounts of $100 or more,
thus avoiding payment minimum charge of 10 or 15 cents on a $5 item? State primary
purpose of the use of express companies or private agencies and give outline of any
threats, oral or written, which may have been made by your employees or agents.
Please wire answer.
HARDING.
352
ANNUAL REPORT FEDERAL RESERVE BOARD.
EXHIBIT I.
TELEGRAMS FROM THE 12 FEDERAL RESERVE BANKS REPLYING TO THE TELEGRAM OF
THE FEDERAL RESERVE BOARD, DATED JANUARY 21, AND MARKED EXHIBIT H.
BOSTON, MASS., January 21, 1920.
Replying telegram 20th: This district has been all par practically since its inauguration of check-collection system. No collection by messenger or demands for payment in currency have been made by us except for a few days in one or two instances
where nonmember banks failed to keep their promises to remit promptly. These
cases were dealt with by forwarding checks for collection through express companies
solely for the purpose of protecting Federal reserve bank against loss and ordinary
methods of sending direct for remittances were readopted on receipt of satisfactory
assurances that future remittances would be made promptly. It has never been
practice of this bank nor, to my knowledge, practice of larger banks in this district
to accumulate checks more than a day before forwarding for collection.
MORSS,
Governor Federal Reserve Bank of Boston.
N E W YORK, January 22, 1920.
Replying your telegram of 20th: First, this bank has never resorted to any method
of coercion to compel State banks to join the Federal reserve system. Second, this
bank has never attempted by threat or any coercive measure to require State banks
to submit to any rule or regulation made by the Federal Reserve Board or any Federal
reserve bank. Third, it has never been the policy of this bank to hold back any
checks on any banks in the district for any purpose whatsoever. The only occasions—•
perhaps not more than three or four—where this has been done were due to our inability to secure the presentation of the items by agents or express company, as, for,
example, during the strike of express company employees about one year ago. Fourth,
it has been the practice of collecting banks in this district when they collect on nonmember banks by sending items direct to hold back small items until they secure
round amounts and thus avoid paying the maximum charge, but, as above stated,
such practice has never been adopted or used by this bank. Fifth, the primary
purpose of our use of express companies and private agents was, and is, to furnish a
complete par-check collection system in this district for the use of our member banks,
other Federal reserve banks, and through them for their member banks. This was
the only method open to us to collect the checks drawn upon certain State banks and
private bankers who had declined to remit at par for checks drawn upon them after
the matter had been unsuccessfully taken up with these banks by letter, by personal
visits, and by invitations to visit our bank. The appointment by us of agents for the
collection of checks upon nonremitting State institutions was caused by their stamping
their checks, "Not collectible through an express company," so that we had no other
method of handling their checks. So far as we know and certainly not with our
authority, have any threats, oral or written, been made by our agents. The total
number of banks and bankers in this district upon which we are collecting checks is
1,702, of which but 4 State banks and 2 private bankers are being collected by express
companies or agents.
CASE,
Federal Reserve Bank of New York.
PHILADELPHIA, PA., January 21, 1920.
Answering you telegram of yesterday, this bank has not used coercive methods and
has deliberately refrained from any action savoring of a threat of any description either
in securing membership in the Federal reserve system or in securing par collections
throughout our district. Neither we, nor the larger banks in this district, have any
occasion to hold back small items until they accumulate to some round amount.
For a very brief period, not exceeding two weeks at most, we did use express companies, but we do not now use them nor any private agency in our collection service.
Our policy has always been to invite application for membership from State institutions through excellence of our service and obvious advantages they may derive from
such membership.
PASSMORE,
Governor Federal Reserve Bank of Philadelphia.
CHECK CLEARING.
353
CLEVELAND, OHIO, January 21,1920.
Answering your wire this bank has not used coercive methods to compel State banks
to join Federal reserve system. All State banks on par list have been obtained by
persuasive methods. No threats other than statement by our representative that we
were obliged to collect their checks in justice to State banks which have voluntarily
agreed to remit at par and that if they will not agree to do so we will collect through
the express company or private agent. Checks on only two banks, both located in
Kentucky, now being collected through express company, none through agents.
Before par list was completed in this district a number of large collecting banks made
a practice of holding small items until total amount was sufficient to avoid minimum
charge and to save postage no longer necessary to hold items for that reason.
FANCHER.
RICHMOND, January 21,.
Answering wire January 20: The Federal reserve bank of Richmond has never taken
any step to coerce or compel a State bank to join the system or to require such bank
to submit to rules or regulations made by Federal Reserve Board or this bank. Referring to matter of par collection of checks drawn on nonmember banks following methods have been followed in Maryland and to some extent in West Virginia. As the
board knows, out of 29.586 banks in the United States, checks on all except 4.000 are
collectible at par. The collection facilities of the Federal reserve system are open to
all banks, whether members or nonmembers; to the member banks directly, to the
nonmember banks through their member correspondents, and such facilities are
being used to an ever increasing extent. In justice, therefore, to the 25,500 and odd
member and nonmember banks whose names are on the par list we feel that it is our
duty to attempt by all fair and reasonable methods to collect for them the checks on
the remaining 4,000 banks, many, if not all of whom, are collecting on par points
through members of the system. As the law does not allow us to pay the exchange
upon the collection of checks it is incumbent upon us to devise some means of collecting without the payment of exchange to the bank on which the checks are drawn.
Our procedure has been and is now to correspond with the nonpar nonmember banks
explaining the situation. Failing to obtain results special representatives are sent to
present the facts and argue to the justice of our endeavor with the officers of the banks.
In the comparatively few cases in which neither of these methods was successful we
arranged to present checks daily through a local agent sele'cted by us; none, however,
are acting at present. While it is in many places the custom of commercial banks to
accumulate small items to avoid minimum exchange charges we have in no case accumulated items either for that purpose or for the purpose of embarrassing the bank by
the presentation of checks amounting to an unusual sum at one time. On the contrary we have done everything in our power to avoid embarrassing situations and
in the very few cases in which we have appointed agents we have instructed them to
consult the convenience of the bank so far as it is practicable to do so, and under no
circumstances to present checks in such a manner as to give rise in the community
to any apprehension as to the standing of the bank or its ability to meet proper demands
upon it in money.
SEAY.
ATLANTA, G A . , January 20, 1920.
The Federal Reserve Bank of Atlanta has never received any instructions from the
Federal Reserve Board nor has it with the consent or knowledge of the Federal Reserve
Board resorted to any method of coercion to compel State banks to join the Federal
reserve system, nor has the Federal Reserve Bank of Atlanta by threat or other coercive means attempted to require such State banks to submit to any rule or regulations made by the Federal Reserve Board or this bank. This bank has never held
back checks on small banks until they amounted to considerable sums, and then sent
messengers to make personal demand for payment in currency. This bank has not
so far collected through duly appointed employees, and only in few instances has it
collected through express companies. In the latter case there w^ere no accumulations
only those checks received in current day's work being sent forward to place of payment. It is the usual practice of large banks clearing out of town checks by sending
direct to hold over for a day or so small checks until the aggregate reaches 100 or more,
thus avoiding the payment of minimum charge of 10 or 15 cents which would be
incurred on an item of small amount. The primary purpose of using express companies or paid employees to collect checks and drafts payable upon presentation drawn
on banks that do not remit at par is to enable the Federal reserve banks to carry out
354
ANNUAL REPORT FEDERAL RESERVE BOARD.
the provisions and intent of the Federal reserve act in so far as they relate to collection
of checks and drafts payable upon presentation that are received on deposit from the
sources named in the act. The act does not limit the checks that may be received on
deposit to those drawn on member banks, and as it is clearly intended that we shall
receive all checks and drafts payable upon presentation, and as section 13 interpreted
by the Attorney General provides that no charges for remission shall be made against
Federal reserve banks it of course follows that unless arrangements can be made with
nonpar remitting banks to remit at par we must find a way of making collection that
will not involve exchange charges. This bank has endeavored in every possible way
to encourage nonmember banks to remit at par, and thus obviate the necessity of our
arranging to present items for payment in cash and has from time to time offered to
such nonmember banks the privilege of opening a clearing account for the purpose of
collecting checks drawn on banks named in our par list, the balances so created to be
used in remitting for items sent them by us, and any excess over the balance required
against our average daily sendings to be subject to their order, we to inclose stamped
envelope with each cash letter, and they to have the privilege of sending us in payment currency at our expense when more convenient. The privilege of opening a
nonmember clearing account was offered so as to give them the benefit of our collection
facilities if they desired to avail of them and not with the view of coercing them to
become members of the Federal reserve system, for as a matter of fact many nonmember banks are not eligible from a standpoint of capital and requirement. There
have been no threats, oral or wTitten, by any one connected with this bank. We have
stated to nonmember banks that while the Federal reserve act does not permit us to
pay exchange for the remittance of bank checks and drafts payable upon presentation,
we can incur any cost that is necessary in order to carry out the purposes of the act,
and that we would very much regret to be forced to adopt other methods of collection
that would prove embarrassing, annoying, and expensive.
ADELSON.
CHICAGO, January 21, 1920.
Replying to your wire, our policy in soliciting State bank membership is to point
out its advantages and show where a State bank can be benefited by becoming a
member. We certainly would not want any State bank to join the system unwillingly, or if it was not an advantage to it to do so. The same consideration is shown
prospective State bank members as would be accorded them by a commercial bank
soliciting their business. With regard to the collection at par of checks on nonmember
banks, all such banks which were not on our par list January 1, 1919, have been
visited by our representatives, who fully explained the advantages of the collection
system, with a view to obtaining their friendly cooperation. When all banks in the
States of Illinois, Indiana, and Iowa were placed on our par list there were a few
which did not agree to remit for checks on them at par. Checks on these banks were
forwarded through the express companies for collection, a practice which is legitimate and which has been used in commercial banks for many years. In a few cases,
where we were unable to obtain satisfactory service from the local express agent, and
also at points where there was no express office, we held the checks a few days, and
presented them by our messenger at the bank's counters for payment rather than
have our messenger make daily trips. We are at present collecting through the
express company checks on only one bank in Illinois, eight banks in Indiana, seven
banks in Iowa, which have not agreed to par their checks, and are collecting checks
on one town in Indiana and two towns in Iowa through agents which we have appointed. Our solicitors in obtaining par points have been instructed at all times to
endeavor to obtain the good will and cooperation of the nonmember banks, and that
coercive measures must not be used. We know of no cases where our agents or employees used any threats, oral or written.
MCKAY.
ST. LOUIS, January 22, 1920.
Replying to your telegram to-day. This bank has never at any time coerced State
banks into making application to join the system. On the contrary, we have made
every effort to explain to banks making application both the advantages and disadvantages of membership. We have not wished to have any bank a member that did
not thoroughly understand the workings of the system and appreciate the advantages.
In collecting at par checks on nonmember banks there are only a few instances where
we have found it necessary to make such collections by express or agent. The following excerpt from a letter addressed to the secretary of the Illinois Bankers' Asso-
CHECK CLEARING.
355
ciation, under date of November 20, 1919, is indicative of our views and the policypursued by us when it has been necessary to collect by express or agent: "One of
our directors, Mr. Sam A. Ziegler, of Albion, 111., mentioned to me yesterday a conversation he has had with you, from which he understood that it was your impression
that it was the policy of this bank to hold up checks for several days, presenting same
at one time, and demanding cash in all cases where it has been necessary for us to use
other than the mails as a means of collecting checks. We are glad of this opportunity
to advise you that such is not the case. We invariably see that the checks that we
may through necessity have to present at the counter of a bank for payment in cash
be presented promptly, the same as if they were transmitted through the mails.
There have been some few instances where the action of the bank in returning items
to us has resulted in more than one day's items reaching them at one time. This,
however, has been unavoidable, and due entirely to the action of the bank on which
the items are drawn, and not us." Several of the larger commercial banks in this
district make it a habit to accumulate checks in order to avoid payment of minimum
charges on small amounts. Purpose of collecting by express or agent is to avoid
payment of exchange, and to obtain actual payment at par without assuming liability
which would result if we were to authorize our agent or the express company to accept
draft in lieu of currency. There has never been any occasion for our making any
threats either oral or written in connection with our services in collecting at par checks
on nonmember banks.
ATTEBERY, Deputy Governor.
MINNEAPOLIS, MINN., January 21, 1920.
Officers and employees of this bank have been cautioned repeatedly not to use any
methods of coercion to compel State banks to join the Federal Reserve System. I
have never heard this complaint from any State bank in this district, with the exception of one I called upon last summer that complained that they had been classed
as unpatriotic because they had not joined the Federal Reserve System. I assured
him that no such expression ever emanated from this bank, and upon further inquiry
he intimated that the remark came from sources other than the Federal reserve bank
or Federal Reserve System. As you know, we have conducted an active campaign
for several years at a meeting to get State banks to remit at par with anything but
satisfactory results. Early in December we wrote all nonpar banks in the States of
Montana, North Takota, and Michigan and told them we planned putting all banks
in those States on our par list January 1, 1920, and it was optional with them whether
we presented the checks at their counter for payment in cash or whether they preferred to remit without deductions for collection charges or exchange in funds immediately available. Some of the banks elected to remit, others told us we could
present checks at their counter, and others refused to reply to our letter of inquiry,
with the result that we made arrangements with the express companies and a few
postmasters to collect checks for us on approximately 60 banks. This number has
since been reduced to 43. We are now advising nonpar banks in South Takota in
the same manner, that all banks in that State will be placed on our par list February 1.
As soon as facilities in our own bank warrant all banks in Minnesota and Wisconsin
will be placed on a par basis. The officers and employees in charge of this campaign
have been cautioned not to use any threats, but simply announce what we are going
to do. I have just had them in my office, and they assure me no threats have been
made by them. We have never held up a large amount of checks on any one. particular bank, so that they would be embarrassed when cash was demanded. However, it has been our policy not to send one small check for collection on a nonremitting bank because of the expense, but we have waited until we accumulated at least
$100 in such checks. It has never been our intention to hold sufficient checks to be
presented at one time so that the bank could not make payment in cash. Upon
inquiry of the larger banks in Minneapolis I find that in the past they pursued a
similar policy, but are not doing so at present. Our instructions to collecting express
companies or private agencies are to present the checks and demand payment in
cash, and if payment is not made, wire us immediately on items over $500 regarding
the items unpaid. Our par point campaign has been conducted almost entirely by
correspondence. We have never employed any representative to solicit nonpar
banks in this district. Glad to furnish copies of our circular letters and telegrams,
if you feel they are necessary.
YOUNG.
356
ANNUAL REPORT FEDERAL RESERVE BOARD.
KANSAS CITY, January 21, 1920.
Replying your telegram 20th: You are advised that—in so far as the Federal Reserve
Bank of Kansas City, including its branches, is concerned—no method of coercion has
been employed to compel State banks to join the Federal reserve system and no
threats or other coercive means have been used or practiced to require such State
banks to submit to rules or regulations made by the Federal Reserve Board or this
bank. Under section 13, which prohibits Federal reserve banks from legally paying
any fee to a member bank or nonmember bank for the collection and remittance of a
check sent for collection, it has been necessary in certain cases to collect checks by
such means as are available. In some cases there are no express companies and others
where the express agents refuse for business reasons to handle collections. When such
contingency arises and where we can not obtain a satisfactory local agent, it is necessary to send a messenger to present the checks at the counter of the payee. In cases
where the payee bank is located in a distant town, for economic reasons we can not
send messenger daily. About the only county in the tenth district where the banks
have stubbornly resisted and treated with contempt our efforts to carry out the provisions of section 13 of the Federal reserve act as relate to collection of items at
par is Pierce County, Nebr., all of the banks in which county are dominated to a
greater or less degree by one Woods Cones, who has the moral support of C. A. McCloud,
president of the First National Bank of York, Nebr., who is interested in several State
banks also. The First National Bank of York for three years insisted upon charging
this bank exchange on items sent to it and only desisted when advised by the comptroller that the publication of its statement showing as an asset action against the
Federal reserve bank for exchange charges would be regarded as a misrepresentation
of its condition. Until the development of the Federal reserve collection system it
has been the practice of the city banks to hold small items against payee banks which
charged exchange until such items amounted to at least $100, in order to avoid prohibitory charges on small items of $5 and $10. It is not our practice to accumulate
any specific amount or to hold checks over even for one day when sending them out
for collection by mail or express; but where it is necessary to send a messenger—as in
the case of Pierce. Nebr., 118 miles from our branch at Omaha—the cost of such visits
warrants us in accumulating several days' checks for collection at once, assuming, of
course, that any payee bank that preferred to pay checks on it over the counter in cash
rather than to remit exchange at par for same would be always prepared to liquidate such
demands in that way. Feeling sure that the complaints referred to in your telegram
originated from Pierce, Nebr., we feel justified in going into some details regarding
the collections of items of that town. The bankers of Pierce, by intimidation or otherwise, have prevented use of the facilities common to the public; as, for instance, the
express agent not only refused to handle our collections but refused to accept a shipment of currency tendered to him by our messenger. This necessitates a visit to
Pierce by automobile in order to carry to the next town funds that are paid. The
notaries of Pierce were intimidated or influenced to the point where they were not
available to our messenger when asked to protest items payment on which was refused.
This required our messenger to take with him a notary from another town to legally
present and protest items when refused for any reason. About a week ago Cones,
McCloud, and others called a meeting of the State bankers at Omaha to discuss the
Pierce campaign of the Federal reserve bank. At this meeting Cones, the principal
speaker at the meeting, is reported to have made certain false and misleading statements.
MILLER.
DALLAS, January 21, 1920.
Answering your telegram date. The Federal Reserve Bank of Dallas has never
through any of its officers or by any implied or direct sanction of the Federal Reserve
Board, or its own board of directors, taken any steps toward or adopted any method
of coercion to compel State banks to go into the system or has it by any threats implied
or otherwiee attempted to require nonmember State banks to submit to any rules or
regulations made by the Federal Reserve Board or itself. The Federal Reserve Bank
of Dallas in collecting checks on nonmember banks has never done otherwise than to
recognize its right under the Federal reserve act and the regulations of the Federal
Reserve Board to receive from its member banks, other Federal reserve banks and the
Treasurer of the United States, negotiable checks and drafts drawn on any solvent
bank, banker or trust company in its district, and to present and collect the face value
of such checks through the most readily available channel. It has endeavored to
avoid presenting checks either through express companies or its bonded agents for
payment at face value in cash without first giving drawee banks the opportunity and
CHECK CLEARING.
357
privilege of receiving checks on them by mail directly from the Federal reserve bank
and remitting all face value on receipt for those checks good on their books in convenient exchange or currency or coin at expense of Federal reserve bank. Being
fully cognizant of the fact that as shown by statistics, full 95 per cent of commercial
transactions are settled by the medium of checks and drafts and considering at all
times the business and financial interests of the entire eleventh Federal reserve district
as reflected in the activities of both member and nonmember banks, it does not desire
to withdraw cash from small localities in payment of checks except where necessary
to collect fully face value of solvent checks which it receives. Its management fully
realizes that such method of collection is wholly unnecessary unless made incumbent
upon the Federal reserve bank by the refusal of drawee banks to pay without deduction
checks drawn on them by their depositors when presented through other channels
than at their counter. They also fully realize and appreciate that drawee banks can
pay checks of their depositors presented them by making mail remittances drawn
against the proceeds of checks which they have received on deposit themselves. The
necessity for shipping currency to distant centers to pay such checks is minimized
by reason of commercial settlements being made by the remittance of checks, and any
expense of transportation of such small amounts of currency as may be necessary to
cover the difference is absorbed by the Federal reserve bank. The Federal Reserve
Bank of Dallas has never with any intent to embarrass a drawee bank permitted checks
to accumulate in its possession from day to day, but has to some extent followed the
established practice of commercial banks which handle collections in bulk to allow
small checks to accumulate until they amount to as much as $1,000 in order to reduce
the percentage of cost of collection and handling to permit drawee banks to pay a
. number of small checks in one transaction. It may be well to inform you that in
some instances, due to the refusal of drawee banks to pay the full face value of checks
of their depositors to express agents or bonded agents when such checks were presented at the counters of the drawee banks and payment demanded and by reason
of the express agents not following instructions and uniform rules established by the
companies which they represent, occasionally a volume of checks has been thrown
back on our hands which added to those in transit and those received by us on the
date of receipt of such returned checks were subsequently presented by an agent of
this bank as the holder of such checks and payment demanded and received. However, even in such few cases of this description where embarassment to the bank was
apparent our agent voluntarily accepted the bank's exchange in payment.
VAN ZANDT, Governor.
SAN FRANCISCO, January 21, 1920.
Federal Reserve Bank of San Francisco has not resorted to any method of coercion
to compel State banks to join the Federal reserve system nor by any threats or other
coercive means has the Federal Reserve Bank of San Francisco attempted to require
State banks to submit to any rules or regulations made by the Federal Reserve Board.
This bank does not hold back checks on small banks or any banks until they amount
to a considerable sum then send them by any means to make demand for payment in
currency to embarrass or coerce banks. Such action has not been taken by this
bank. It is not the practice of large banks in this district when collecting on nonmember nonpar banks to hold back small items until in round amounts they amount
to $100, except our Portland branch reports some banks in Portland hold items for no
longer than two days. The only instance of what might be construed as coercive or
threatening statements have been statements oral or written made by officers of this
bank from time to time the types of which were that "the Federal reserve banks are
by law not permitted to pay exchange and that if an exchange charge is made it will
necessitate our collecting checks by whatever other means are available to insure
their payment at par.
DAY.
PART II.S
REPORTS OF FEDERAL RESERVE AGENTS TO
FEDERAL RESERVE BOARD.
45525°—21
24
359
DISTRICT NO. 1—BOSTON.
FREDERIC H. CURTISS, Chairman and Federal Preserve Agent.
INTRODUCTION.
The great business activity which marked the last half of the year
1919 continued well into the year 1920, bringing with it a new high
level of prices, followed in the late spring by a slowing down in
industry and a decline in commodity prices which continued to the
end of the year, prices declining from 25 to 30 per cent on an average,
leaving accumulations of stocks of all kinds of merchandise in the
hands of the merchant and the manufacturer. New England, as
well as other parts of the country, had the same experience with
these fluctuations in commodity prices as was common with the
rest of the world, and the policies of the Federal Reserve Bank of
Boston have been dictated by the effort to minimize the financial
results of these extreme fluctuations in the business of this district
as far as it was possible so to do.
The officials of the bank realized the dangerous conditions which
were developing early in the year and in January established a general
increase in discount rates as a warning to its member banks against
further expansion and urged contraction where excessive credit lines
had been granted. Since these increases in discount rates did not
appear to be effective a second general increase in rates was made on
June 4, when the rates on commercial paper were advanced to 7 per
cent. At the beginning of the year 1920 the loans of the Federal
Reserve Bank at Boston, owing to discounts made in this district,
was about at its peak, standing at $289,000,000, of which amount it
had been necessary to rediscount some $60,000,000 with other
Federal Reserve Banks, largely those in the South and West, while
the bank's adjusted reserve then stood at 27 per cent; but, through
the cooperation of the heads of some of the large banks in the district,
pressure was brought on borrowers in speculative lines of merchandise
to reduce their inventories and prepare for a decline in prices. These
arguments were not listened to with any degree of willingness in the
early part of the year but, as time went on, it became more and more
apparent that prices were too high, and probably the business men of
the First Federal Reserve District realized as early as those in any
other part of the country that a change was coming. The result was
that the loans of member banks at the Federal Reserve Bank began
to decline, until in August they were reduced to approximately
$120,000,000. The situation was greatly helped by the liquidation
of loans in the banks secured by Government obligations, many
Liberty loan bonds being sold even at the prevailing low prices, and
loans against them paid off by those who had borrowed to make
subscription for the bonds.
361
362
ANNUAL REPORT FEDERAL RESERVE BOARD.
At the time the rate of discount on commercial paper was raised in
June to 7 per cent, the rate of discount on notes secured by Government bonds was fixed at 6 per cent and on notes secured by certificates
of indebtedness at 5J per cent. From that date no change was made
in the discount rates during the remainder of the year.
During *the latter part of the year, country banks in this district
were comparatively small borrowers at the Federal Keserve Bank and
the number of borrowing banks was reduced from 267 on January 1,
1920, to slightly over 230 on December 31, 1920. Most of the borrowings of the country banks were made on Government obligations
because of the lower rate of discount.
The subscriptions of the country banks to certificates of indebtedness during the year were quite small, neither did they buy any great
amount of commercial paper. On the other hand, the market for
bankers7 acceptances has gradually widened as this form of investment
has become better known. The result is that there has been a good
market for acceptances during the year among the country banks in
this district so that at no time has the Reserve Bank had an undue
amount of this class of paper in its portfolio. It is probably true
that the local demands of the country banks absorbed most of their
resources so that they did not have a large amount for outside investment at any time. On the other hand, the demands of their local
customers did not make it necessary for them to borrow excessively
at the Federal Reserve Bank.
As the year closes, the Federal Reserve Bank has an adjusted
reserve of over 60 per cent, after excluding loans of some $18,000,000
to other Federal Reserve Banks, and not only has the Reserve Bank
been loaning freely to the other Federal Reserve Banks during the
last half of the year, but it has at the same time provided its member
banks with practically all the loans that they required.
REVIEW OF BANKING CONDITIONS.
The member banks in the First Federal Reserve District have gone
through the year in a most satisfactory manner, having adjusted
their business to meet the changing industrial conditions.
There have been no failures among member banks during 1920
and, while a few banks have at times become somewhat overextended
in their loans, liquidation of these to proper limitations have been
gradually brought about through the help and cooperation of the
Federal Reserve Bank. The failure of several of the smaller Boston
trust companies in the early fall caused but temporary disturbance
to other banking institutions. These trust companies had large savings deposits and handled a character of business peculiar to themselves and, therefore, their closing was little felt by other institutions.
The condition of banks outside of Boston has changed but little
during the year, as the pressure due to price readjustment has fallen
largely on the Boston banks. Country banks have bought but a
small amount of commercial paper during the year, although they
have been buyers of Government bonds and bankers' acceptances.
Concerns, therefore, that have been accustomed in the past to rely
on the outside market for loans have been obliged to increase their
borrowings with their city banks. A comparison of the returns made
by the banks in the district shows a marked decrease during the year
DISTRICT NO. 1
BOSTON.
863
in loans secured by Government obligations held both in the outside
banks and Boston banks. On the other hand, both classes of banks
show an increase in commercial loans. Demand deposits during the
same period haye declined, especially of Boston banks, while time
deposits have increased, the increase being largely with outside
ban
@FedFRASER