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Twenty'Seventh

AMUAL REPORT
of the

BOARD OF GOVERNORS of the
FEDERAL RESERVE SYSTEM

COVERING OPERATIONS FOR
THE YEAR

1940

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
December 31, 1940
MARRINER S. ECCLES, Chairman

RONALD RANSOM, Vice Chairman
M. S. SZYMCZAK
JOHN K. MCKEE

CHESTER C. DAVIS
ERNEST G. DRAPER

LAWRENCE CLAYTON, Assistant to the Chairman

ELLIOTT THURSTON, Special Assistant to the Chairman
CHESTER MORRILL, Secretary

LISTON P. BETHEA, Assistant Secretary

S. R. CARPENTER, Assistant Secretary
FRED A. NELSON, Assistant Secretary
WALTER WYATT, General Counsel

J. P. DREIBELBIS, Assistant General Counsel
GEORGE B. VEST, Assistant General Counsel
B. MAGRUDER WINGFIELD, Assistant General Counsel
E. A. GOLDENWEISER, Director, Division of Research and Statistics
WOODLIEF THOMAS, Assistant Director, Division of Research and Statistics
LEO H. PAULGER, Chief, Division of Examinations
R. F. LEONARD, Assistant Chief, Division of Examinations
C. E. CAGLE, Assistant Chief, Division of Examinations
EDWARD L. SMEAD, Chief, Division of Bank Operations
J. R. VAN FOSSEN, Assistant Chief, Division of Bank Operations
J. E. HORBETT, Assistant Chief, Division of Bank Operations
CARL E. PARRY, Chief, Division of Security Loans
PHILIP E. BRADLEY, Assistant Chief, Division of Security Loans
O. E. FOULK, Fiscal Agent
JOSEPHINE E. LALLY, Deputy Fiscal Agent

CONTENTS
Text of Report
PAGE

Summary
Open-Market Operations
Banking Developments
Growth in Reserves
Growth in Deposits
Increase in Commercial Loans of Banks
Increase in Government Securities Held by Banks
Member Bank Earnings and Profits in 1940
Changes in Banking Structure
Federal Reserve Participation in National Defense Program
Business Conditions in 1940
The Spring Recession
Inauguration of Defense Program
Increase in Industrial Activity
Activity in Other Lines
Commodity Prices
Employment, Payrolls, and Wage Rates
Corporate Profits
Security Markets
Business Situation at End of Year
International Gold and Capital Movements
Early Months of the War
Consequences of the Spring Campaign
Prospect of Sharply Diminished Gold Inflow
Federal Reserve Bank Operations
Earnings and Expenses
Discount Rates
Interdistrict Collection System
Credits to Foreign Central Banks
Legislation Relating to the Federal Reserve System
Changes in Regulations of the Board of Governors
Bank Examinations
:
Grants of Authority
Membership in the Reserve System
Trust Powers of National Banks
Holding Company Affiliates
Foreign Banking Corporations
Foreign Branches of Member Banks
Agreements with Nonmember Banks
Federal Reserve Meetings
Board of Governors-Staff and Expenditures
Reappointment of Board Members
Changes in Board Staff
Board Expenditures
Banking Studies and Reports to Congress
Federal Reserve Bulletin
Changes in Senior Executive Officers of Federal Reserve Banks

1
3
4
4
6
6
7
8
8
9
11
11
12
13
13
14
15
15
15
16
16
16
18
20
21
21
22
23
23
23
24
25
26
26
26
26
26
27
28
28
28
28
29
29
29
29
30
III

Tables
PAGE

No. 1. Statement of Condition of the Federal Reserve Banks (in Detail) December 31, 1940
No. 2. Statement of Condition of Each Federal Reserve Bank at End of 1939
and 1940
No. 3. Holdings of U. S. Government Securities by Federal Reserve Banks at
End of December 1939 and 1940
No. 4. Volume of Operations in Principal Departments of Federal Reserve
Banks, 1936-1940
No. 5. Earnings and Expenses of Federal Reserve Banks during 1940
No. 6. Current Earnings, Current Expenses, and Net Earnings of Federal Reserve Banks and Disposition of Net Earnings, 1914-1940
No. 7. Number and Salaries of Officers and Employees of Federal Reserve
Banks
No. 8. Receipts and Disbursements of the Board of Governors of the Federal
Reserve System for the Year 1940
No. 9. Federal Reserve Bank Discount, Interest, and Commitment Rates, and
Buying Rates on Acceptances, December 31, 1940
No. 10. Maximum Rates on Time Deposits
No. 11. Member Bank Reserve Requirements
No. 12. Margin Requirements
No. 13. All Member Banks—Condition on December 31, 1940, by Classes of
Banks
No. 14. All Member Banks—Classification of Loans, Investments, Real
Estate, and Capital on December 31, 1940, by Classes of Banks...
No. 15. Member Bank Reserve Balances, Reserve Bank Credit, and Related
Items—End of Year 1918-1939 and End of Month 1940
No. 16. Number of Banks and Branches in United States, 1933-1940
No. 17. Analysis of Changes in Number of Banks and Branches during 1940.
No. 18. Number of Banks on Par List and Not on Par List, by Federal Reserve
Districts and States, on December 31, 1939 and 1940
No. 19. Money Rates, Bond Yields, and Stock Prices
No. 20. Business Indexes

32-33
34-37
38
39
40-41
42-43
43
44-45
46
47
47
47
48-49
50-51
52
53
54
55
56
57

Appendix
Record of Policy Actions—Board of Governors
60-63
Record of Policy Actions—Federal Open Market Committee
63-66
Recommendations of the Federal Advisory Council to the Board of Governors
of the Federal Reserve System
67
Special Report to the Congress
68-70
Board of Governors of the Federal Reserve System
71
Federal Open Market Committee
71
Federal Advisory Council
72
Senior Officers and Directors of Federal Reserve Banks
73-80
State Bank and Trust Company Members
81-90
Description of Federal Reserve Districts
91-96
Federal Reserve Branch Territories
97-98
Map of Federal Reserve Districts
99
Index
101-111

LETTER OF TRANSMITTAL
BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM,

Washington, June 30, 1941.
THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

Pursuant to the requirements of section 10 of the Federal Reserve Act,
as amended, I have the honor to submit the Twenty-seventh Annual Report,
prepared by direction of the Board of Governors of the Federal Reserve
System, covering operations during the calendar year 1940.
Yours respectfully,
M. S. ECCLES, Chairman.

An+uud RepxvU o^ tUe Boasui oj QouebH&M oj the
d d (lei&iue System
SUMMARY

war situation and the national defense program were the dominating influences on business and financial developments in this country
during 1940. Throughout the year the Federal Reserve System endeavored in every way within its power to contribute to the effectiveness of
the defense effort. It also gave consideration to the best means of preventing undesirable credit expansion that might impede the progress of
defense and increase the difficulties of readjustment later.
After the outbreak of war in the autumn of 1939, there was a rapid expansion of production and a substantial advance in prices. These developments were partly of a speculative character, in anticipation of large
war demands. During the first four months of 1940, there was some recession in activity but as orders from belligerents increased and the national
defense program got under way, industrial activity rose sharply. This
rise continued to the end of the year, when industrial output as a whole was
larger than at any previous time and many industries were operating close
to existing capacity. The increase of activity, however, was not accompanied by a considerable or widespread advance in prices.
National income advanced from $71 billion in 1939 to $76 billion in 1940,
and in the late months of the year was at the annual rate of about $80
billion. This rise was due in large part to defense activities, together with
orders from Great Britain for war materials. A considerable part of the
increase reflected a further rise in the volume of industrial employment,
particularly in the higher wage occupations. At the end of 1940, however,
there were still a large number of persons unemployed. The cash income
of farmers rose, and corporate profits, notwithstanding deductions for
higher taxes, increased considerably.
The volume of bank credit expanded substantially during the year.
Banks added large amounts to their holdings of Government securities and
also increased their commercial, industrial, and agricultural loans, their
loans on real estate, and their consumer loans. A large part of the increase
in bank credit was due to substantial purchases of United States Government obligations by New York City banks. The growth in bank credit,
together with the unprecedented inflow of gold from abroad, resulted in a
further increase in bank deposits to a new high record. This growth was
more rapid than the increase in activity, with the consequence that the
rate of turnover of deposits was lower than in 1939. An increasing
proportion of total deposits appeared to be held as idle funds pending
investment.
1

ANNUAL REPORT OF BOARD OF GOVERNORS

The flight of capital from foreign countries in the war zones continued
to be a major factor in gold imports during the early part of the year.
After the German successes in the spring, the rapid increase in British
payments for war materials, including heavy advance payments, raised
the gold inflow to new heights. But gold reserves of the United Kingdom
were largely exhausted by the movement; and at the close of 1940 the gold
inflow, which had been in progress on an extraordinary scale for nearly two
years and a half, was receding toward the level of current gold production
abroad.
By the end of the year, bank reserves aggregated $14 billion, almost half
of this amount being in excess of legal requirements. Banks had more
money available for loans and investments than ever before, and far more
than enough to meet probable credit needs. In view of this vast supply of
available credit and the stimulus to business being engendered by the defense program, the Board of Governors, the Presidents of the Reserve
Banks, and the Federal Advisory Council joined in a special report to
Congress late in December. Since reserves had risen beyond the System's
power to restrain an inflationary credit expansion should one develop, and
since such a development might seriously hamper the defense program and
later readjustment to peace-time economic conditions, the Federal Reserve
authorities recommended that the System be given power to absorb excess
reserves and limit further expansion, if the need for such measures should
arise. (For text of the special report, turn to pages 68-70.)
Federal Reserve credit policy during the year was expressed through
open-market operations in the interest of maintaining orderly conditions
in the capital market. The System's portfolio of Government obligations
was intermittently reduced as market demand became strong and Government security prices advanced. By the end of the year the System had
sold $300 million of Government obligations from its portfolio. By making
these securities available to other purchasers, the System exerted a stabilizing influence on the capital market.
In the latter part of the year, at the request of the Advisory Commission
to the Council of National Defense, the Board organized a service within
the Federal Reserve System through which smaller business enterprises
interested in defense contracts could obtain advice on the proper course
of action for obtaining and financing them. This work was greatly
facilitated by the prior passage of the Assignment of Claims Act, which the
Board, among others, had recommended. Through the Federal Reserve
Banks it has been possible to assist the smaller businesses in securing defense contracts and to bring industries needing to finance such contracts
in touch with lendable funds.
Multiplication of problems in connection with the increasing defense
effort and its implications for later reconstruction have led the Board

FEDERAL RESERVE SYSTEM

during the year to expand considerably its studies in the field of domestic
and international economic developments.
OPEN-MARKET OPERATIONS

The System's open-market policy in 1940, as in 1939, involved the use
of a flexible portfolio for the purpose of maintaining orderly conditions
in the Government security market. The purpose of this policy was to
exert a steadying influence on the market for United States Government
obligations and on the capital market in general.
YIELD ON 1960-65

TREASURY BOND

2.75

2.50

2.25

2.00

J 2.00
1939

1940
Source: Treasury Department.

About the time of the outbreak of European hostilities in 1939, the System purchased a total of $473 million of United States Government
bonds and notes. In the last two months of 1939, at times of rapidly advancing Government security prices and strong demand in the market,
$77 million of this total was sold. Also, the System's remaining holdings of
Treasury bills ran off during the latter half of the year. In 1940 Government security prices rose to new high levels, reflecting principally a continued large amount of funds seeking investment, and the System disposed
of an additional $300 million.
In March, long-term Treasury bonds advanced in price, and by April
2 had recovered practically all of the loss sustained during the war crisis.
From the beginning of the year to April 2, the System Account disposed of

ANNUAL REPORT OF BOARD OF GOVERNORS

$18 million of Government securities. Following the invasion of Norway
and Denmark and later the invasion of the Low Countries, long-term
bonds declined by more than four points. This decline during April
and May canceled about half of the recovery that had been made from
the levels reached shortly after the outbreak of the war. Conditions in
the market, however, were strikingly different from those that had existed
in the autumn of 1939. Offerings were not large, and orders were in the
market on a scale-down at practically all times. In view of this situation,
the System's purchases during the decline amounted to only $10 million
of notes and bonds, as compared with $473 million in the autumn of 1939.
After reaching a low point early in June, the market for the next six
months continued an almost uninterrupted advance to a new all-time high
on December 10. At this time the longest outstanding Treasury bond
issue, the 1960-65s, yielded about 2 per cent, as shown on page 3. This
compares with a low yield of 234 per cent reached in June 1939 and again
in April 1940, and a high yield of 2% per cent in September 1939. The
average yield on all Treasury bonds callable in more than 12 years declined
to \y% per cent, and the average yield on three to five year tax-exempt
Treasury notes was between 34 and Y% of one per cent.
As the market resumed its advance, the System account up to the first
of September disposed of $44 million of notes and bonds. During the
last three months of the year the System pursued a more active policy of
selling and disposed of $250 million of securities. For the year as a whole,
the amount of holdings in the System Account declined by $300 million,
bringing total holdings of Government securities at the Reserve Banks to
the lowest level since September 1933.
BANKING DEVELOPMENTS

Bank reserves and bank deposits continued to increase in 1940, again
establishing new high records. The principal factor in the increase was
the inflow of gold from abroad after the war entered a new, more active
phase in the spring of the year. Another factor in the growth of deposits
was a considerable increase in bank loans and investments, mainly commercial loans and holdings of United States Government securities. Although the volume of deposits increased sharply, their rate of use or turnover declined, reflecting the fact that the increase in deposits was faster
than the increase in activity. By the end of the year the banks had more
idle reserves than at any previous time and more than sufficient to meet
all probable credit needs.
Total reserves of member banks of the Federal Reserve System rose by
$2.4 billion in 1940, following a rise of $2.9 billion in 1939. By the end
of the year they totaled $14 billion, of which nearly
1
reserves "
^ a ^ w a s m e x c e s s °f legal requirements. In 1940,
excess reserves increased by $1.4 billion, or by about
two-thirds of the increase for 1939. The rapid expansion in bank reserves

was
due chiefly to the continued acquisition of gold from foreign countries—

FEDERAL RESERVE SYSTEM

a movement that is explained more fully in a later section of this Report.
During the year our monetary gold stock increased by over $4 billion to a
level of $22 billion. The fact that the increase in bank reserves fell short
of the growth in gold stock was due mainly to further expansion in the
demand for currency, to sales of securities from the Federal Reserve System
open-market portfolio, and to the building up of official foreign balances
at the Federal Reserve Banks for exchange stabilization purposes and in
anticipation of war orders.
EXCESS RESERVES OF MEMBER BANKS
BILLIONS OF OOLLARS

WEEKLY AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS

1937

1938

1939

1940

Latest figures are for week ending Friday, December 27, 1940.

The growth in member bank reserves occurred at all classes of banks in
all sections of the country. New York City banks were usually the first
depositories of the funds obtained from the gold inflow that supplied most
of the additional reserves. Some of these funds later shifted to banks in
other parts of the country as the result of payments for goods and services,
security transactions in New York, and Treasury and business disbursements of funds borrowed in the New York market.
Excess reserves of member banks, as well as total reserves, increased
throughout the country. The amount of growth was less for New York
City
banks than it had been in 1938 and 1939, however, while for reserve

ANNUAL REPORT OF BOARD OF GOVERNORS

city banks and country banks it was as large or larger. The largest increases during the year were at banks in the Boston, New York, Cleveland,
and San Francisco Federal Reserve districts, while the smallest increases
were in the Minneapolis, Kansas City, and Dallas Reserve districts.
Banks in the latter districts, however, reported increases in their already
substantial holdings of available cash funds in the form of balances with
correspondent banks.
Gold imports, together with the increase in bank loans and investments,
have added to the already large volume of bank deposits. Deposits in
all banks in the United States, exclusive of interbank
deposits111
deposits, increased by over $6 billion during 1940.
The total volume of bank deposits and currency held
by the public, including inactive as well as active deposits and currency,
reached a record high level of about $71 billion at the end of the year.
This figure exceeds the predepression peak level of 1928-1929 by over
$15 billion.
That a considerable part of the volume of deposits of the general public
is held idle, presumably awaiting investment or other profitable use, is
indicated by the continued unusually low turnover or rate of use of existing
deposits, as measured by the amount of checks drawn against them.
Although there was a moderate increase in the aggregate amount of check
payments handled by the country's commercial banks, the growth of
deposits, other than interbank deposits, was greater. As a consequence
the rate of turnover of deposits declined slightly to about 13 times a year.
This compares with an average turnover rate of about 21 times a year
during the early 1920's, prior to the rapid increase in turnover caused by
the security market boom in the latter part of that decade.
In addition to the growth in bank deposits and bank reserves, there has
been a large increase in the demand for currency by the public. By the
end of 1940 currency in circulation amounted to about $8.7 billion, representing a growth of $1.1 billion during the year. The increased demand for
currency has reflected in part greater needs owing to the acceleration in
business activity and in part the holding of inactive currency.
There was a substantial increase in the volume of bank loans during the
latter part of 1940. Following a moderate increase in commercial, industrial, and agricultural loans during the first half
Increase in
o f the year, member banks generally experienced a
commercial loans
;
'
,°
•;
,
of banks
livelier demand lor such loans in the latter half of 1940.
Most of the increase was at city banks. Commercial
loans at member banks in 101 leading cities increased by $620 million
during the year. Of this increase, $555 million was in the last four months,
representing an average growth of about $31 million a week. Commercial,
industrial, and agricultural loans at country banks increased by $210 million
during the year, of which $125 million occurred in the last six months.
Digitized forLoans
FRASER
to brokers and dealers in securities, which are made mostly by New

FEDERAL RESERVE SYSTEM

York City banks, declined sharply in the spring of 1940 following a fall in
stock prices. Thereafter these loans showed little change until the end
of the year, when they temporarily increased in volume. Real estate
loans increased further in 1940, continuing a growth that has progressed
steadily during the past five years. This increase has been principally at
country banks in loans on urban residential property.
ALL MEMBER

BANKS
BILLIONS OF DOLLARS

CALL REPORT DATES

BILLIONS OF DOLLARS

30
DEMAN D DEPOSITS
ADJUSTED
i

25
\

LOANS

/
//

-—ss.— \ - ^
I

y
y—

INVESTMENTS

T
I0

-^—
RESERVE BALANCES v ^ ^ "

1
1928

1930

1932

1934

1936

1938

1940

Member bank holdings of United States Government obligations, direct
and guaranteed, increased by about $1.5 billion during 1940, following an
increase of $1.1 billion in 1939. The increase amounted
Increase in
to $1.3 billion at New York City banks, compared with
Government
$900 million in the previous year. In the latter half
securities
held by banks
of 1940, member banks in other leading cities and country banks increased their holdings to record levels,
following declines in the first half of the year. Owing in part to the
approach to maturity of outstanding issues, the proportion of member
banks' Government security portfolios maturing within five years increased from 39 per cent at the end of 1939 to 44 per cent at the end of
1940.
The amount of Treasury bonds, notes, and bills outstanding in the
open
market increased during 1940 by about $900 million, with an increase

ANNUAL REPORT OF BOARD OF GOVERNORS

of $1.1 billion in bonds and small declines in notes and bills. Guaranteed
obligations showed an increase of about $300 million. The total amount
of Government obligations in the market, therefore, increased by about
$1.2 billion. The Federal Reserve System disposed of $300 million of
Government securities during this period. Commercial banks added $1.5
billion to their holdings, insurance companies purchased about $400 to
$500 million, and mutual savings banks over $100 million. Other investors, principally individuals, reduced their holdings by about $500 to $600
million. On the other hand, these other investors added nearly $1 billion
to their holdings of United States Savings bonds.
In 1940 the net profits of member banks averaged 6.2 per cent of total
capital accounts, about the same as the average for the past four years.
Moderately higher income from loans offset most of
Member bank
^ e decline in income from investments and the small
earnings and

profits in 1940

rise in expenses. Losses on loans were lower than
those reported for any calendar year since 1920.
Increased income from loans reflected growth in volume, especially in
such types as real estate and personal installment loans that bear higher
interest rates. Security holdings yielded less than in previous years, notwithstanding an increase in volume, since there was a decline in the average
rate of return on securities. This decline resulted partly from extensive
refunding of outstanding securities by new issues with lower coupons
and partly from portfolio turnover.
Following the trend of recent years, in 1940 the number of banking
offices declined slightly to 18,561. The number of banks in operation
decreased to 14,895, while the number of branches
bankhfg8structure increased by 37 to 3,666. The net decline of 139 in the
number of banks reflected mainly consolidations, absorptions, and voluntary liquidations. There were 22 bank suspensions, and
two suspended banks reopened. Thirty-two new banks organized, about
the same number as in 1939, but less than for any other year in the last
several decades. The net increase of 37 in the number of branches was
slightly smaller than in either of the two preceding years and considerably
below the increases recorded in the four years following the banking holiday.
As has been generally true in former years, the number of branches operated
in the same city as the parent bank decreased, while the number of branches
located outside the head-office city increased. Almost half of the gross
increase in the number of branches was accounted for by the conversion of
existing banks into branches.
Membership in the Federal Reserve System increased from 6,362 to
6,486 during 1940. The net increase in the number of State member banks
was the largest since 1920, but its effect upon membership in the System
was partly offset by the decrease in the number of national banks that
resulted primarily from consolidations and absorptions. During the year

188
nonmember banks were admitted to membership, exclusive of four

FEDERAL RESERVE SYSTEM

new State member banks that did not increase membership for the reason
that they were organized to succeed previously existing member banks.
Almost two-thirds of the State banks admitted were located in the North
Central States, and about one-fifth in Texas and Virginia.
FEDERAL RESERVE PARTICIPATION IN NATIONAL DEFENSE PROGRAM

On May 30, 1940, the President of the United States appointed the
Advisory Commission to the Council of National Defense, including in its
membership Chester C. Davis of the Board of Governors. Space was immediately provided in the Federal Reserve Building for the use of the
Commission and the Board offered the services and facilities of the Federal
Reserve System in aid of the defense program.
In September, at the request of the Defense Commission, the Board of
Governors conducted a 48-hour survey to ascertain how much commercial
bank credit could be made available for defense plant construction loans.
Such loans were to be based on a proposed new form of contract—the
Emergency Plant Facilities Contract—developed by the Commission after
consultation with the War and Navy Departments and the Comptroller
General. The Board acquainted the Federal Reserve Banks and their
branches with the plan by telegraph and requested them to contact representative banks in their territories. It was revealed that the banks covered by the survey stood ready to lend large sums to manufacturers for
emergency defense plant construction.
It had become apparent that the statutory prohibition against the
assignment of claims arising from a Government contract might impede
the financing of the defense program. Accordingly the Board cooperated
in securing the passage of the Assignment of Claims Act of October 9, 1940,
which removed this prohibition. On October 25 the Defense Commission
requested the Board of Governors to act as its operating agent in assisting
the smaller business enterprises in obtaining defense contracts and such
financial aid as might be required. The Defense Commission suggested
that the Board designate one of its members to have charge of this work
and request each Reserve Bank to detail an officer at each head office and
branch to serve as field representative. The Board advised the Commission on October 26 that the System would be glad to assist in the manner
indicated and that Ernest G. Draper, a member of the Board, had been
requested to take charge of the activities.
At the suggestion of the Defense Commission, a conference was called
in Washington for November 12-13 in order to acquaint the field representatives fully with the details of the program, and prior thereto various
memoranda were forwarded to the field representatives for their information and guidance. The conference was attended by 47 Reserve Bank
officers; by representatives of the Board of Governors and of the Defense
Commission; and by representatives of the War, Navy, Treasury, and Commerce Departments, the Reconstruction Finance Corporation, the Securi

ANNUAL REPORT OF BOARD OF GOVERNORS

ties and Exchange Commission, and the Tennessee Valley Authority.
It was the understanding at the conference that the field representatives,
working closely with Governor Draper, with Mr. Robert L. Mehornay of
the Office of the Director of Small Business Activities of the Defense
Commission, and with the various Army and Navy procurement officers,
would be in a position to furnish business enterprises in their districts
with information on the procedure to be followed relative to obtaining
defense contracts; to place potential subcontractors in touch with concerns awarded primary contracts; to encourage prime contractors to
subcontract part of their work; to familiarize local banks with the procedure to be followed in accepting assignments of Government claims as
security for loans; to encourage local banks to make loan commitments on
condition that borrowers obtain Government contracts; and to assist small
business enterprises in obtaining necessary financing, through their local
banks if possible, or through other lending agencies, including the Federal
Reserve Banks and the Reconstruction Finance Corporation, if additional
credit was found to be needed to supplement that obtainable from the
borrowers' regular banking connections.
Following the Washington conference, the Reserve Banks arranged for
conferences with local procurement officers of the Army and Navy and
forwarded letters to all banks in their respective districts advising of the
services which they were in a position to render in connection with the
defense program. Report forms entitled "Facilities for Defense Supplies"
were furnished to be filled out by banks for concerns which were in a
position to furnish needed defense supplies but were not on the invitation
bidding lists of the War and Navy Departments, and arrangements were
made to have surveys made of individual plants with a view to advising the
types of defense products that could be supplied with their respective
facilities. Advice was given that the field representative at each Federal
Reserve Bank and branch would be ready at all times to consult with
business men and bankers with respect to the procedure to be followed in
obtaining Government contracts and subcontracts and to confer with them
as to means of obtaining needed credit if it was not available from the
usual sources. Later the Reserve Bank field representatives made surveys
of various plant facilities at the request of Government officials and attended numerous meetings of bankers and business men to explain the
activities of the System in the defense program and to suggest ways in
which various features of the program could be explained to potential
contract bidders and to the general public. Discussions of the Assignment
of Claims Act and of the Emergency Plant Facilities Contract appeared
to be of particular interest. A generally cooperative attitude prevailed at
the meetings and the participants expressed a desire to assist to the fullest
extent in financing the National Defense program.
It is believed that the defense work of the 12 Federal Reserve Banks

FEDERAL RESERVE SYSTEM

and their 24 branches, a total of 36 field offices, has provided a valuable
service to many business enterprises throughout the country and has reduced the need for special trips to Washington to obtain information with
respect to defense contracts. Either directly or through the Reserve
Banks, the Board of Governors has obtained information and assistance
from various Government departments and agencies in Washington for
contractors producing or about to produce defense supplies. The Board
has also answered many inquiries of the Reserve Banks relating to financial
and other problems connected with defense loans.
Following the establishment of field offices at the Federal Reserve Banks
it became evident that if they were to be of the greatest possible service
in connection with the defense program, particularly with respect to the
expansion of subcontracting, it would be desirable to have located at each
office a staff of qualified engineers and other technical experts under the
supervision of an outstanding industrialist of the community. These
technicians would serve as local representatives of the Defense authorities.
Before the year ended the necessary groundwork had been laid for the expanded facilities which have subsequently been established at most Federal
Reserve Banks and branches.
BUSINESS CONDITIONS IN 1940

Economic activity in the United States declined somewhat during the
early months of 1940 but after April showed a rapid advance, owing primarily to the strong influence of defense measures undertaken after extension of German control on the European continent. By the end of
the year activity generally had reached a new high level and in a few important industries was at or close to existing capacity.
With a lull in active warfare in Europe during the early months of 1940,
producers became increasingly uncertain as to prospects for a continuing
large volume of business and geared their buying polic es m o r e
^
closely to current needs than in the autumn
of 1939, when they had accumulated considerable
inventories. As a consequence industrial activity was reduced from earlier
peak levels, as shown by the chart on page 12, and prices of commodities,
especially basic materials, declined. Downward tendencies, however, did
not spread throughout the economy. Export demand for war materials
increased and a policy of maintaining existing large inventories as protection against possible future shortages of material was generally followed.
With income payments sustained in many fields, consumer purchases of
nondurable goods and of such durable goods as automobiles and new
houses were maintained near levels reached toward the end of 1939.
Security prices showed little change, high-grade bonds selling at somewhat
higher prices than they had in the autumn of 1939 and stocks at somewhat
lower prices.

ANNUAL REPORT OF BOARD OF GOVERNORS

SELECTED BUSINESS SERIES
BILLIONS OF DOLLARS
ANNUAL BASIS

BILLIONS OF DOLLARS
ANNUAL BASIS

100

80
INCOME PAYMENT
(ADJUSTED)

1935-39= 100

140
INDUSTRIAL PRODUCTION

120

100

/^*

\
\

80
MILLIONS OF DOLLARS

140

120

/ \y

100

y
V
*—^y

80
MILLIONS OF DOLLARS

400

300

200

—

200

100

60
1938
1936
1937
1939
1940
Source: Income payments, exports and imports, Department of Commerce; industrial production,
Board of Governors of the Federal Reserve System; common stock prices, Standard Statistics Company;
basic commodity prices, Bureau of Labor Statistics index converted to 1926 base.

Beginning with the German invasion of Norway, Denmark, and the Low
Countries in the spring, the domestic situation changed rapidly. There
was an immediate decline of over one-fifth in common
defence Vogram
stock prices and there was a moderate decline in prices
of high-grade bonds. Commodity prices, after ad
vancing
in
the
first
few days, continued their general downward movement

FEDERAL RESERVE SYSTEM

for several months. Production, however, was greatly stimulated by the
development of plans for a large defense program, repeatedly revised upward during the rest of the year. The awarding of contracts under this
program began in June and the effects on business were evident in many
instances before contracts were awarded. There was increased buying as
attention became focused on the possibility of bottlenecks in particular
industries. By the end of 1940 over $10 billion of defense contracts had
been awarded and additional commitments of S3 billion had been made.
Some of the contracts had been completed by the end of 1940 and work
had been started on many of the longer-time projects. The bulk of the
work on the defense program, however, remained to be done in later
years.
By the year end industrial production had risen to a level higher than
at any time in the history of the country, about 10 per cent above the peak
reached at the end of 1939. The rise was general,
Increase in
reflecting increased buying for civilian as well as for
activity
military requirements, but was most marked for metals
and metal products, wool textiles, and building materials, all products which were in particular demand for military purposes.
In some instances trade buying beyond current needs was stimulated by
the prospect of priorities, and by the end of the year many manufacturers
were increasing their inventories of materials. The amount of goods in
process also increased considerably, reflecting in part increased activity on
products that require a long time to produce. As new orders continued
in excess of current output, unfilled orders reached new high levels and
pressure for increased output was strong.
The defense program required expansion of capacity for the manufacture
of armaments, and, by expanding income and civilian demands, focused
attention on the possible need for additional plant capacity in steel and
certain other industries where most existing facilities were already in use.
In the case of important materials obtained mostly from abroad, the Federal Government was accumulating stocks in a move to insure adequate
future supplies in the event of shipping or other difficulties. The Government was also making special arrangements to import copper to be made
available to consumers whenever sufficient quantities should not be available from domestic sources at existing prices.
The rise in industrial production was accompanied by increased activity
on the railroads, in the distributive trades, and in construction. Contracts
awarded for new plant construction in the last quarter
of 1 9 4 0 w e r e a b o v e t h e h i h 1 9 2 9 l e v e L
g
Awards for
new privately financed factory construction exceeded
the peak reached in the summer of 1937, and in addition there was a large
volume of contracts for Government financed construction of factories to
make airplanes, munitions, and the like. A large volume of contracts was
awarded also for cantonment construction to be carried on during the

winter
and spring of 1940-41. Private residential building, greatly

ANNUAL REPORT OF BOARD OF GOVERNORS

stimulated in some areas by defense activities, reached a level higher than
at any time since 1929.
Agricultural income increased in 1940, chiefly as a result of higher prices
for all major products except hogs. Also, more livestock products were
marketed and receipts from Federal loans on crops increased. For the
year as a whole, cash farm income, including Government payments, was
up 5 per cent, about the same increase as shown by total national income
payments. There was a sharp curtailment in all principal exports of
agricultural commodities, including cotton, tobacco, wheat, pork products,
and fruits, but the effect of this on agricultural income was more than
offset by increased domestic demand and by expansion in loans under the
Federal program.
During 1940 there were two general movements in wholesale commodity
prices, a decline from the beginning of the year until August and an advance
from August to November. The level at the end of the
prices ° * *
^ e a r w a s a ^out the same as that reached in the rapid
advance late in 1939, following the outbreak of war in
Europe. Retail prices showed only a small rise during 1940.
The change in the military situation in Europe during the spring had
certain direct effects on wholesale prices, mostly on the down side, and
other less direct but fully as important effects that became evident months
later in marked price advances. The principal declines in the spring were
in commodities held partly for speculative purposes; wheat, for example,
dropped from over $1 a bushel to about 70 cents and for a short period
grain markets were closed to restore orderly conditions. Wood pulp and
paper advanced, as Scandinavian supplies were cut off, but there were few
other increases at this time.
During the summer the general tendency of prices was downward despite
a steady growth in domestic demand and maintenance of exports of manufactured goods at a high level. One important factor in this continued
price decline was the pressure of foreign supplies of certain basic commodities on markets in this country as Continental markets were closed
by extension of the British blockade.
In the autumn, with a further increase in trade buying to cover requirements in connection with defense activities and growing civilian demand,
prices of basic industrial materials rose sharply. Prices of semi-manufactured articles, particularly those most affected by military demands,
also showed important increases and there were advances in some finished
industrial products, notably automobiles and textiles. Prices of agricultural commodities rose during this period to a level about the same as a
year earlier.
In the last two months of 1940 wholesale prices showed relatively little
change, owing to increased domestic production and greater imports and
also to various steps taken by Federal agencies to restrain price advances,
particularly in the metals.

FEDERAL RESERVE SYSTEM

Early in 1940 employment and payrolls in nonagricultural pursuits declined moderately as industrial activity receded, but thereafter they showed
large sustained advances. These increases were quite
Employment,
general but were most rapid in manufacturing inwage rates
dustries, especially those making armaments and other
products called for by the defense program. Payrolls
in manufacturing rose more rapidly than employment, owing for the most
part to an increasing amount of overtime work and pay in defense industries. There were also scattered wage rate increases. For the year as a
whole factory payrolls were 14 per cent larger than in 1939.
Profits of large industrial corporations as a group were nearly one-fourth
larger in 1940 than in the preceding year. The largest increases occurred
in durable goods industries. Net income of railroads
was
l a r S e r than in any other year since 1930. Substantial increases in profits accompanied the rise in
industrial activity as total costs rose less than gross income. Expansion
in gross income reflected larger production and, in some instances, higher
prices for finished products. Certain costs, such as interest and depreciation, changed relatively little and in most industries payrolls increased
no more than output. Material costs, however, rose somewhat more than
production, owing to increases in prices of materials affected by higher
shipping charges, prospective shortages, and the like. Also, tax deductions
were increased substantially to take account of higher corporate income
taxes and a newly enacted excess profits tax.
Prices of common stocks at the end of 1940 generally were at a lower
level than at the beginning of the year. With the intensification of war
in May, common stock prices showed a sharp drop to
markets
levels near the lowest of recent years. In the summer
and fall, prices recovered about half of the May decline.
Volume of trading on the New York Stock Exchange increased substantially in May but for the year as a whole was smaller than in any year
since 1921.
Prices of corporate bonds moved gradually upward during the year,
except during May when high-grade bonds declined moderately and lowergrade bonds declined sharply. Yields on high-grade corporate bonds included in Moody's averages for Aaa issues reached successive new low
records in the course of the year, and at the year end averaged less than
2% per cent. At that time yields on lower-grade obligations, as represented by issues included in Moody's averages for Baa bonds, were below
43^2 per cent, a new low for recent years.
Corporate security issues, including refunding and new capital, totaled
$2.7 billion for the year. This was the largest total for any year since
1936 and was $600 million larger than in 1939. New corporate financing
during 1940 was largely for refunding, as was the case in other recent years.
The amount of issues for new capital, although nearly double the 1939

total,
was considerably smaller than in 1936 and 1937.

ANNUAL REPORT OF BOARD OF GOVERNORS

At the end of 1940 business activity was at a record level, particularly in
industries affected by the defense program-and by British demands for war
materials, and continued high activity was assured
Business
for a considerable period by the large volume of orders
situation at

, .

end of year

on hand, schedules called for greatly increased output
of war materials, which in some instances could be attained by fuller utilization of existing plants but in others could be brought
about only through expansion of plant capacity or curtailment of production for civilian purposes.
Sharp price advances had occurred in some commodities, particularly
lumber, wool, and steel scrap. It had been recognized at the time of the
establishment of the Advisory Commission to the Council of National
Defense in May that expansion and redirection of economic activity would
be likely to create serious price problems, and before the year end attempts
were being made in various ways to prevent rising prices from adding to
the many problems already faced by the country.
The number of persons employed outside agriculture was about 2.5
million higher at the end of 1940 than before the war and about 400,000
men had been added to the armed forces. The number available to meet
growing demands was still substantial, however. Workers potentially
available included, in addition to employable workers without jobs, many
people not ordinarily regarded as part of the labor force. Although the
labor resources of the country were thus not being fully utilized, the number of skilled men in some trades had proved insufficient. This situation
was being alleviated by training new workers and by reorganizing work so
as to make use of workers with limited experience.
It was evident that while the defense program would provide assurance
of a high level of activity for a considerable period in the future, the standard of living could not be expected to be at a correspondingly higher level,
since many of the goods produced would be war materials. Part of the
increased money incomes would be paid out in increased taxes, and part
might go to meet higher living costs.
INTERNATIONAL GOLD AND CAPITAL MOVEMENTS

The impact of war worked major changes in the international position
of the United States during 1940. Progression of the war from one phase
to another and the extension of territory affected by military occupation
brought pronounced readjustments in gold and capital movements to this
country as well as a reorientation of foreign trade. The changes came into
evidence in the spring and became increasingly apparent as the year
wore on.
The first eight months of the war (September 1939-April 1940) were
marked by movements of gold and capital similar to those in the year of
crisis that preceded the war. The flight of capital
of'the'war S
from the neutral countries threatened by war develop
ments but still able to maintain relatively free exchange
http://fraser.stlouisfed.org/
markets continued on the same great scale after September 1, 1939, as
Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM

in the year that preceded. Many countries participated. On the basis
of reported figures, Swiss nationals and residents of other countries who
were using Swiss accounts accumulated nearly $240 million of dollar
assets in the eight months ending with April 1940. An additional $90
million was accumulated in Belgian accounts; $70 million in Dutch; $60
million in Italian; and substantial sums in the names of residents of other
countries that were neutral at the time.
Some of the movement recorded in thesefiguresrepresented the building
up of official funds in this country for purposes of exchange stabilization;
but the great bulk of the movement from these countries reflected the
flight of private capital—a flight that put pressure on the resources of the
monetary authorities. In fact the private movement was considerably
larger than the reported figures would indicate. It is known, for example,
that foreigners seeking to protect their dollar assets accumulated United
States currency or made deposits here in accounts which appeared to belong
to residents of this country. Again, refugees with large dollar deposits or
security holdings, by the mere fact of their coming to the United States,
converted what were previously foreign liabilities of this country into
domestic, thus removing important sums from the regular weekly reports
of capital inflow. It was mainly to meet this continuing exodus of uneasy
private money that countries other than the British Empire, France, and
Japan shipped over $550 million of gold directly to the United States, and
additional large amounts by way of British countries, in the first eight
months of the war.
During the same period the British Empire and France shipped nearly
$1,500 million of gold to this country, including substantial amounts for
other European countries, and Japan sold more than $100 million. The
role played by private capital in the gold movement from belligerent
countries was mixed. With the outbreak of war the Allies imposed exchange controls and curbed the flight of British and French funds that had
been in progress. The United Kingdom went further. It immediately
requisitioned a large part of the dollar balances that its nationals had
previously acquired, and subsequently, in a series of steps, it requisitioned
specified holdings of dollar securities as well. In this and other ways the
various controls not only stopped the flight of capital on the part of their
own nationals, but drew upon existing private assets to finance their war
needs. During the first eight months of the war the recorded figures
indicate that $460 million of the capital credited in this country to the
United Kingdom, Canada, and France was used up. Most of this had
been private capital at the outset of the war.
While private dollar funds of nationals of belligerent countries were
being converted to war purposes, alien funds were being withdrawn from
such countries, largely through the mechanism of the free sterling market.
The British Treasury has estimated that there was a drain on British
dollar resources of at least $735 million through capital withdrawals from

ANNUAL REPORT OF BOARD OF GOVERNORS

England in the first 16 months of the war, and other evidence suggests
that the bulk of these withdrawals occurred in the first half of the period.
Funds were also transferred from Canada and, undoubtedly, France. In
some degree the movement was an extension of the private flight of neutral
capital already described, but in this case the flight of neutral funds was
from Allied financial centers and at the expense of the dollar resources of
the Allies.
Not only did the flight of capital continue in this form even after exchange controls were introduced, but British gold and dollar resources
were employed to lend assistance to friendly countries and to settle adverse
trade balances with others than the United States. Although to some
extent the trade balances were settled by sterling transactions, the creditor
country holding the sterling or using it to repatriate securities from British
holders, substantial balances often remained to be settled in gold or dollars.
In the first eight months of the war these special factors of capital withdrawals, together with gold and dollar payments tq countries other than
the United States, were more prominent than were increased Allied purchases of goods in this country. The British Empire was buying substantial amounts of cotton, steel, machinery, and other products, and France
was getting delivery on planes; but in general this first part of the war
period was characterized more by preparatory work than by widespread
and urgent buying.
The spring campaign of Germany made sweeping changes in this picture.
Denmark, Norway, Luxembourg, Netherlands, Belgium, and France
fell within a period of ten weeks. Directly and inconsequences
directly most of Continental Europe was brought under
J

of the spring

x i r ™

_ i

campaign

German control, lhe centers from which neutral
European funds had been coming to the United States
were largely blocked off. American assets of the countries named were
frozen by a series of Executive Orders. Subsequently the American assets
of several other invaded countries were added to the list. The amounts
so frozen are shown in the accompanying table.
FROZEN FOREIGN ASSETS IN UNITED STATES IN

19401

[Estimated market values in millions of dollars]
Country and date
Denmark (April 8)
Norway (April 8)
Belgium (May 10)
Luxembourg (May 10)
Netherlands (May 10)
France (June 17)
Latvia, Lithuania, and Estonia (July 10).
Rumania (October 9)
Total

Bullion,
United States
currency,
and foreign
and deposits
securities
55
100
442
30
700
988
26
46
2,387

27
54
251
16
796

448
2
2
1,596

Others

Total

10
23
68
2
126
158
1
5
393

92
177
761
48
1,622
1,594
29

53
4,376

1
Data compiled by United States Treasury from special reports required by the freezing orders and
covering respective countries and then- empires. In some instances the net assets (total assets after deducion 2of debit balances) are slightly smaller than the totals in the table.
Includes credit instruments and claims not listed separately, merchandise, real property, etc.

FEDERAL RESERVE SYSTEM

Capital and Gold Flow to the United States.—The extension of German

military operations went far toward drying up theflowof European funds
to the United States. From August 1938, on the eve of the Munich conference, through April 1940, the reported inflow of capital from European
countries other than the United Kingdom and France had amounted to
$1,300 million. From May to the end of 1940 private holders listed in
these same countries withdrew $230 million; but official funds here rose
as private funds were liquidated. There was little net change. After
May 1940 the reported gold, capital, and trade transactions of these smaller
European countries, which had played so significant a role in the movements of the year preceding the war and in the first eight months of the
war itself, largely ceased to affect the American position.
Similarly France ceased to be a factor. It had sent large amounts of
gold to the United States for war purchases so long as it remained a combatant, and just before the freezing order in June it added considerably to
its balances here. Since that time France has been active only to the very
limited extent permitted by the freezing arrangements and the British
naval blockade.
Most of the unfilled war orders of France were taken over by the British.
At the same time the British greatly intensified their own purchases in this
country. Heavy advance payments were made on the new orders, and
deliveries increased substantially. Gold sales to this country by the
British Empire were over two and a half times as great in the last eight
months of 1940 as in the first eight months of the war. About $3 billion
was added to United States gold stock from foreign sources in this final
period.
United States Foreign Trade.—The rapid growth in English and Canadian
purchases here and the blockade of the European Continent transformed
the foreign trade of this country. By the middle of the summer nearly
two-thirds of all United States exports were going to the British Empire.
The remainder were going to Latin America and other countries that, for
the most part, had little need for agricultural produce from the United
States.
Almost the entire export trade of this country was in industrial products.
Half of these by value were what might be called war materials—aircraft,
firearms, ammunition, explosives, and, at an earlier stage of war production,
machine tools and metals and their manufactures. Exports of these socalled war materials rose from a volume of about $50 million a month at
the outbreak of the war to $150 million a month in the last half of 1940.
Not all of the commodities in this group went to Great Britain. Some
went to Japan; and the Latin American countries, no longer adequately
supplied from Europe, turned to the United States for steel and various
other products. But British purchases accounted for the major part of
the exports in this group and bulked large in most other commodities as
well. In fact, from the collapse of France to the end of the year, the

ANNUAL REPORT OF BOARD OF GOVERNORS

limiting factor on British purchases in this country was not the British
willingness or ability to buy but the capacity of American industry to
turn out the goods.
By the end of 1940 the gold reserves of the United Kingdom had been
largely exhausted—partly in making heavy advance payments on orders
for American goods to be delivered later. The remainProspect of
m g dollar resources available to the British Treasury
ished gold inflow
were mostly in American securities or direct investments
in British controlled companies here. These involved
special marketing problems and the dollars represented could not be
accurately determined in advance of sale.
While expanding British purchases of war materials in this country appeared to be assured by prospective American assistance under the lendlease plan, it was apparent as the year ended that the United States had
entered a new phase in its international financial relations. The great gold
movement in progress since 1933 reached its climax in the war crisis, and
could no longer continue at the intensified rate made possible by the draining
of British, French, and other gold reserves. From August 1938, when the
Munich crisis was starting, to the end of 1940, the United States Treasury
had purchased nearly $8.5 billion of foreign gold. During the same period
foreign gold production amounted to about $3 billion. Although undeterminable movements in gold hoards were a factor in the difference between the two figures, the magnitude of the drain upon foreign gold reserves
was clearly of extraordinary proportions.
By the end of 1940 Europe, with its important gold holding countries,
had largely fallen under German control and was blockaded by the British
Navy; and the British Treasury itself was nearing the end of its accumulated gold resources and falling back on current gold production of the
Empire, supplemented by the proceeds of intensified sales of American
securities. Ahead lay the prospect of American assistance on a great
scale under the lend-lease plan. South American countries in need of
dollars were being assisted by the Export-Import Bank and the Stabilization Fund; and the way was being prepared for creation of an InterAmerican Bank, through which further assistance could be given. Nowhere else in the world were there large accumulations of gold likely to be
shipped to the United States for sale to the Treasury.
As the year ended it seemed evident that, until the disposition of the
great gold holdings of the European Continent was finally determined,
further foreign gold acquisitions of the United States would be largely
limited to gold production abroad. Such production, including rough
estimates for Japan and the U. S. S. R., which publish no comprehensive
figures, was running at the close of 1940 at the rate of about $1.3 billion a
year; and some of this was in countries that might have little occasion to
export their entire gold output.

FEDERAL RESERVE SYSTEM
FEDERAL RESERVE BANK OPERATIONS

Figures for the volume of operations in principal departments of Federal
Reserve Banks during 1940 as compared with the preceding four years are
given in Table 4 on page 39. The number and amount of bills discounted for member banks declined for the third successive year and fell
below the volume handled for any previous year in the history of the
System. Advances to industry under section 13b of the Federal Reserve
Act also declined, but toward the end of the year there was an increase in
the amount of applications for industrial loans owing to an expanding demand for credit in the financing of defense contracts. The number and
amount of checks collected by the Reserve Banks and of paper money and
coin handled increased in 1940. Securities issued, redeemed, and exchanged as fiscal agents for the United States Treasury and Government
agencies were somewhat below the 1939 level.
EARNINGS, EXPENSES, AND DISTRIBUTION OP N E T EARNINGS OF
FEDERAL RESERVE BANKS IN 1940 AND 1939
[In thousands of dollars]
1940

1939

Current earnings
Current expenses

43,537
29,165

38,501
28,647

Current net earnings
Profits on sales of U. S. Government securities and other additions to current
net earnings in excess of special depreciation allowances and provision for
losses

14,372

9,854

11,488

2,389

25,860

12,243

82
8,215
-54
17,617

25
8,110
-426
4,534

25,860

12,243

12,273

1,965

Net earnings
Paid U. S. Treasury (section 13b)
Dividends paid
Transferred to surplus (section 13b)
Transferred to surplus (section 7)
Total
Transferred from surplus (section 7) to reserves for contingencies

An additional task performed by the Federal Reserve Banks for the
United States Treasury arose out of Executive Orders pertaining to the
control of property held in this country by certain foreign countries and
their nationals. The Federal Reserve Banks, and particularly the Federal Reserve Bank of New York, were required to handle a large volume of
applications for licenses covering transactions involving such frozen property and other matters relating thereto.
Current earnings, current expenses, and distribution of net earnings of the
Federal Reserve Banks for 1940 compared with 1939 are shown in the
accompanying table. Net earnings were $25,860,000
in m o
and^xpenses
> a n i n c r e a s e of $13,617,000 over the amount for
1939. This increase was due partly to larger current
earnings from holdings of United States Government securities and partly

ANNUAL REPORT OF BOARD OF GOVERNORS

to increased profits on Government securities. Current expenses of the
Federal Reserve Banks increased $518,000 to $29,165,000.
Of total net earnings for 1940, payments to the Secretary of the Treasury
under section 13b of the Federal Reserve Act, relating to working capital
advances to commercial and industrial businesses, amounted to $82,000.
The 6 per cent dividend to member banks, paid in accordance with the
provisions of the Federal Reserve Act, amounted to $8,215,000. Remaining net earnings of $17,563,000 were added to surplus accounts. Transfers
from surplus to reserves for contingencies totaled $12,273,000.
Detailed statements of earnings, expenses, and distribution of net earnings for the System and for each Federal Reserve Bank are given in Table
5 on pages 40-41.
Average daily holdings of bills and securities at the Reserve Banks for
the past four years and average rates of earnings thereon are shown in the
accompanying table. It will be noted that while average holdings of
United States securities were smaller in 1940 than in the preceding year
earnings therefrom were substantially larger. This was due to a higher
average earning rate, which is accounted for by the fact that holdings of
United States securities in 1940 consisted exclusively of bonds and notes,
whereas in 1939 they included a substantial volume of bills.
EARNINGS ON BILLS AND SECURITIES
[Amounts in thousands of dollars]

Item and year

Daily average holdings:
1937
1938
1939
1940

Earnings:
1937
1938
1939...
1940
Average rate of earnings (per cent):
1937.
1938
1939
1940

Bills
bought
in open
market

United States
Government Industrial
securities,
advances
direct and
guaranteed

Total

Bills
discounted

2,542,545
2,590,597
2,602,590
2,429,984

13,749
8,739
5,103
4,046

3,390
543
440

2,503,865
2,564,877
2,584,268
2,416,761

21,541
16,438
12,779
9,177

40,352
35,404
37,581
42,677

212
124
61
51

24
3
2

39,025
34,446
36,903
42,174

1,091
831
615
452

1.59
1.37
1.44
1.76

1.54
1.42
1.20
1.26

.71
.48
.45

1.56
1.34
1.43
1.75

5.06
5.05
4.81
4.93

Discount rates of the Federal Reserve Banks were unchanged during the
year except on industrial advances and commitments under section 13b of
the Federal Reserve Act. Rates on such transactions
were
rate?™*
&enerau<y reduced during the last quarter to permit
the charging of lower interest on loans to finance defense contracts. The Reserve Banks were also authorized, in case of
industrial advances participated in by a local bank, to charge the rate
fixed by the financing institution if lower than the established Federal
Reserve Bank rate.

FEDERAL RESERVE SYSTEM

The number of banks on the Federal Reserve par list at the end of 1940
was 11,632, comprising all of the 6,486 member banks and 5,146 nonmember banks. The number of nonmember banks
Interdistrict
(other than mutual savings banks and banks on which
Collection

&
x

System

no checks are drawn) not on the par list was 2,715.
Banks on the par list pay without deduction of exchange charges such checks drawn upon them as are forwarded for payment
by the Reserve Banks.
The number of banks on the par list declined 125 during the year, as a
result of mergers, voluntary liquidations, suspensions, and withdrawals
from the par list. During the year there was a net reduction of four in the
number of nonpar banks. Thirty-two such banks terminated their
existence and 14 became par banks; on the other hand, 10 new banks opened
as nonpar banks and 32 par banks assumed a nonpar status. In 1940 as in
the previous year, more of the banks that were in existence throughout
the year withdrew from the par list than were added to it.
Of the gross increase of 42 in the number of nonpar banks, 10 were in the
St. Louis and 14 in the Minneapolis Federal Reserve district. The net
increase in the number of nonpar banks in the St. Louis district was one
and in the Minneapolis district three. The distribution of the number of
nonpar banks by States at the end of the year was as follows: Minnesota
415, Georgia 256, Mississippi 177, Tennessee 169, Nebraska 162, Wisconsin
160, Arkansas 133, Alabama 131, North Carolina 125, South Carolina 119,
North Dakota 113, Iowa 113, Missouri 106, Louisiana 104, Texas 98,
South Dakota 95, Florida 88, and 13 other States 151.
The balance of the credit granted to the National Bank of Hungary by
the Reserve Banks in 1931 was repaid on July 29, 1940, in the amount of
$1,817,000 plus accrued interest from July 18, the date
centraf bankseign o n which ^he credit expired. Two semiannual interest
payments due in 1940 were made according to the
terms of the renewal agreement of 1937 (ANNUAL REPORT for 1937, p. 35).
Two loans on gold to a foreign central bank were outstanding at the end
of 1939 for a total amount of $5,020,000. This total included $1,520,000
maturing in February 1940 and $3,500,000 maturing in March 1940. In
February the first loan was renewed for one month in the amount of
$1,000,000, and later in the month, a further loan of $1,000,000 maturing
in May was granted. These loans were repaid in full in advance of the
respective due dates.
A series of relatively small loans on gold for periods not exceeding three
months was made to another central bank from August 31 to December 24.
The amount of such loans outstanding on December 31,1940, was $947,000,
all maturing by the end of January 1941.
LEGISLATION RELATING TO THE FEDERAL RESERVE SYSTEM

Although not the major subject of any legislation enacted during 1940,
were directly or indirectly
the following:

the
Federal Reserve System and its operations

http://fraser.stlouisfed.org/
affected by Congressional action with respect to
Federal Reserve Bank of St. Louis

ANNUAL REPORT OF BOARD OF GOVERNORS

Impounding Funds of Certain Foreign Countries and Their Nationals.—

An Act approved May 7, 1940, made certain technical and clarifying
amendments to section 5(b) of the Act of October 6, 1917, known as the
Trading with the Enemy Act. This provision was the basis for the Presidential Proclamation of a Federal "bank holiday" in 1933, and had been
amended by section 2 of the Emergency Banking Act of March 9, 1933.
The 1940 amendment was for the purpose of clarifying the authority of the
President to regulate transactions in funds or other property in this country
in which foreign countries or their nationals have an interest. By Executive Orders under this provision during 1940, transactions in funds or other
property of various invaded countries and their nationals were subjected
to licensing by the Secretary of the Treasury. In this connection reports
as to such funds or property, as well as applications for licenses, were required to be filed with the Federal Reserve Banks.
Possession of Property Stolen from Banks.—An Act approved June 29,
1940, provided criminal penalties for any person who receives, possesses,
or disposes of any money or property which he knows to have been feloniously taken from any member bank of the Federal Reserve System, any
insured bank, or any bank organized or operating under the laws of the
United States. The Act was in the form of a further amendment to the
amended Act of May 18, 1934, which provides criminal penalties for
robberies of such banks.
Assignment of Claims under Government Contracts.—The Assignment of

Claims Act of 1940, approved October 9, 1940, provided that claims under
public contracts may under certain conditions be assigned to a bank, trust
company, or other financing institution. While this Act does not directly
refer to the Federal Reserve System, it is closely related to the arrangements which the Federal Reserve System made, in cooperation with the
Advisory Commission to the Council of National Defense, to assist in
facilitating the defense program, particularly in connection with the
obtaining of contracts by the smaller business enterprises and financing by
local banks.
CHANGES IN REGULATIONS OF THE BOARD OF GOVERNORS

The regulations of the Board of Governors were changed during the year
1940 in the following respects:
Regulation on Noncash Collections.—On February 1, 1940, there became
effective a new Regulation G governing the collection by Federal Reserve
Banks of notes and bills and other "noncash items" for member banks
and nonmember banks. The regulation, which had been adopted by the
Board on December 26, 1939, was issued in order that the principal terms
and conditions relating to the collection of noncash items might be published in the Federal Register, and it required no change in the existing
practices of the Federal Reserve Banks. Other provisions regarding the
collection of noncash items are contained, as heretofore, in circulars of the
Federal Reserve Banks.
individual

FEDERAL RESERVE SYSTEM

Interlocking Bank Directorates.—Effective January 2, 1940, the Board
of Governors amended section 3(c) of Regulation L, relating to interlocking
bank directorates under the Clayton Act, so as to permit any director,
officer, or employee of a bank which does not exercise trust powers to
serve a trust company which does not receive deposits.
The Banking Act of 1935 had amended the Clayton Act by tightening
the prohibitions against interlocking bank directorates, but had allowed a
period until February 1, 1939 for the adjustment of lawfully existing relationships. The statute authorized the Board of Governors to make exceptions by regulation, and the Board, by amendments to sections 3(a) and
3(e) of its Regulation L, had extended the period of adjustment until
June 1, 1940, the last extension having been made on February 1, 1940.
No further extension was made, and, therefore, on June 1, 1940 the provisions of the statute which had been postponed became effective.
Common Trust Funds Invested Principally in Mortgages.—Effective
June 1, 1940, the Board amended section 17 of Regulation F, relating to
trust powers of national banks, so as to permit the operation of Common
Trust Funds invested principally in mortgages, in States in which there
is specific statutory authority for the operation of such funds. These
amendments enable such funds operated under State statutes to obtain
certain tax exemptions which are granted by the Federal revenue laws to
Common Trust Funds operated in accordance with the Board's regulations.
BANK EXAMINATIONS

There was no change in the policy and procedure of the Board of
Governors with respect to bank examinations during 1940. Briefly, the
situation was as follows:
Federal Reserve Banks.—Each of the 12 Federal Reserve Banks was
examined during the year by the Board's Division of Examinations.
Foreign Banking Corporations.—The head office of the one banking corporation now in active operation organized under the provisions of section
25 (a) of the Federal Reserve Act to engage in foreign or international
banking was examined by the Board's Division of Examinations.
Member Banks.—All member banks are examined by a Federal agency;
national banks by the Comptroller of the Currency, and State member
banks by the Federal Reserve Banks under the direction of the Board of
Governors.
State member banks are subject, under the provisions of the Federal
Reserve Act, to examinations made by direction of the Board of Governors
of the Federal Reserve System or of the Federal Reserve Banks by examiners selected or approved by the Board of Governors. The policy approved
by the Board of Governors for such examinations was continued without
change, i.e., that at least one regular examination of each State member
bank, including its trust department, be made during each calendar year
by the examiners for the Federal Reserve Bank of its district. As in
previous
years, in order to avoid duplication of examinations and to

ANNUAL REPORT OF BOARD OF GOVERNORS

minimize inconvenience to the banks examined, it has been the policy
wherever practicable to make joint examinations in cooperation with the
State banking authorities or, by agreement with the State authorities, to
make alternate examinations.
GRANTS OF AUTHORITY

Pursuant to provisions of the Federal Reserve Act and the Securities
Exchange Act, the Board of Governors took the following action with
regard to grants of authority during the year 1940.
During the year the Board approved the applications for membership
of 196 State banks and 192 were admitted to membership. Four of the 192
admissions did not increase the number of member
Membership in
banks in the Federal Reserve System, since they
the Reserve
_
_
, . .
System
represented banks organized to succeed existing member
banks. The difference between the number of applications approved and the number of banks admitted to membership is
accounted for by the fact that nine of the banks admitted in 1940 were
approved for membership in 1939, twelve of those approved in 1940 did not
accomplish membership until 1941, and one bank whose application was
approved elected not to join the System.
Under the provisions of section ll(k) of the Federal Reserve Act, the
Board granted authority to exercise one or more trust powers to 18 national banks. Trust powers of 31 national banks were
nadona?1banks
terminated, 14 by voluntary liquidations, 4 by consolidations with other national banks, and 13 by voluntary surrender. At the end of 1940, there were 1,860 national banks
holding permits to exercise trust powers. A list of such banks, showing the
power or powers each is authorized to exercise, will be furnished upon
request.
During the year 1940 the Board acted upon the applications for voting
permits submitted by holding company affiliates of member banks in
accordance with the provisions of section 5144 of the
Revised Statutes and section 9 of the Federal Reserve
Act, and authorized the issuance of five permits for
general purposes and eight permits for limited purposes.
Under the authority of section 301 of the Banking Act of 1935, the Board
determined that nine organizations were not engaged directly or indirectly
as a business in holding the stock of, or managing or controlling, banks,
banking associations, savings banks or trust companies, and that, therefore, they were not holding company affiliates except for the purposes of
section 23A of the Federal Reserve Act.
There were no changes during the year in the list of foreign banking
corporations operating under agreements entered into with the Board of
Governors pursuant to section 25 of the Federal Ree
kinS
s e r v e A c t o r i n t h e list of forei n
forp
orations
S banking corporations

chartered
by
the
Board
under
the provisions of section
http://fraser.stlouisfed.org/
25(a) Bank
of the
Federal
Federal Reserve
of St.
Louis Reserve Act.

FEDERAL RESERVE SYSTEM

The four corporations organized under State law and operating under
agreements with the Board pursuant to the provisions of section 25 of the
Federal Reserve Act relating to the investment by member banks in stocks
of corporations engaged principally in international or foreign banking are:
Bankers Company of New York, which is affiliated with the Bankers Trust
Company of New York; International Banking Corporation, which is
affiliated with the National City Bank of New York; First of Boston International Corporation, which is affiliated with the First National Bank
of Boston; and French American Banking Corporation, which is owned by
the Guaranty Trust Company of New York, the First National Bank of
Boston, and the Comptoir National D'Escompte of Paris.
The Chase Bank, which commenced business in 1930 and is affiliated
with the Chase National Bank of New York, is the only banking corporation in active operation organized under the provisions of section 25(a)
of the Federal Reserve Act to engage in international or foreign
banking.
Two of the five corporations referred to above have no foreign branches.
The other three corporations operate, either directly or through subsidiary
corporations, 12 foreign branches or offices located as follows: In England,
3; France, 4; Spain, 2; China, 2; Hong Kong, 1. During the year the
Chase Bank discontinued one of the two offices operated in Paris and
opened a temporary office in unoccupied French territory at Chateauneufsur-Cher. The National City Bank of New York (France) S. A. of Paris,
affiliated with the International Banking Corporation, established an office
at Le Puy en Velay in the south of France.
At the end of the 3^ear, seven member banks were operating a total of 93
branches or offices in 62 cities in 23 foreign countries or dependencies or
insular possessions of the United States. This repreof mwnbe^banks sents a net increase of one as the result of the establishment of four new branches and the discontinuance
of three.
During the year the Board granted permission, pursuant to the provisions
of section 25 of the Federal Reserve Act, for the establishment of two
foreign branches of member banks, a branch of the Guaranty Trust Company of New York at Vichy, France, and an additional branch of the First
National Bank of Boston at Buenos Aires, Argentina. Two other branches
were established by the National City Bank of New York under permission
given in the previous year, one at Barranquilla, Colombia, and an additional branch at Shanghai, China. The three discontinued branches were
those of the National City Bank of New York at Brussels, Belgium, and
Hankow, China, and the branch of the Guaranty Trust Company of New
York at Antwerp, Belgium.
Of the 93 branches and offices, four national banks were operating 84, and
three State bank members were operating nine. The foreign branches were
distributed geographically as follows:

ANNUAL REPORT OF BOARD OF GOVERNORS

Argentina
Belgium
Brazil
Burma
Canal Zone
Chile
China
Colombia
Cuba

10
1
4
1
4
2
7
3
16

Dominican Republic. . 6
England
11
France
3
Hong Kong
1
India
3
Japan
4
Mexico
1
Panama
4
Peru
1

Philippine Islands....
Puerto Rico
Straits Settlements...
Uruguay
Venezuela

1
7
1
1
1

Under section 8 (a) of the Securities Exchange Act of 1934 and the
Board's Regulation T, brokers and dealers subject to the Act may not
borrow in the ordinary course of business from a nonnonnfenfber banks member bank on registered securities (other than
exempted securities) unless such nonmember bank has
signed an agreement with and in the form prescribed by the Board of
Governors of the Federal Reserve System. At the end of the year there
were 150 nonmember banks with such agreements in force.
FEDERAL RESERVE MEETINGS

Four meetings of the Federal Open Market Committee were held in
Washington during 1940, on March 20, May 27-28, September 27, and
December 18, and the executive committee of the Federal Open Market
Committee met as occasion required. A record of actions taken by the
Committee on questions of policy relating to open-market operations is
published as an appendix to this report.
The procedure was followed during the year of having meetings of the
Presidents' Conference in Washington at the time of the meetings of the
Federal Open Market Committee and, accordingly, meetings of the Presidents of the Federal Reserve Banks were held on March 19, May 27,
September 27-28, and December 17-18, 1940.
The Chairmen of the Federal Reserve Banks held two conferences in
1940, the first of which was on April 12-14 and the second on December
9-10, 1940.
Four meetings of the Federal Advisory Council were held in Washington
during 1940, on February 19-20, May 20-21, October 7-8, and November
18-19. Recommendations of the Council to the Board of Governors are
published in the appendix to this Report.
BOARD OF GOVERNORS-STAFF AND EXPENDITURES

Effective March 8, 1940, Marriner S. Eccles of Utah was reappointed a
member of the Board of Governors for the remainder of the term held by
Chester C. Davis of Maryland expiring on January 31,
t
f
1944 a n d M r D a v i s w a s
Boa?d°members°
>
reappointed a member of the
Board for the full term expiring on January 31, 1954.
On March 5 Mr. Eccles was redesignated by the President as Chairman
of the Board for a term of four years from February 1, 1940, and on July
18, 1940, Ronald Ransom of Georgia was redesignated by the President as
Vice Chairman.

FEDERAL RESERVE SYSTEM

Effective as of June 10, 1940, Fred A. Nelson was appointed an Assistant
Secretary of the Board of Governors.
In order to provide a better service in handling the
Boanf sta*ff
growing number of requests from the public for Board
publications and for information on the Federal Reserve
System, this work and the personnel engaged therein, hitherto distributed
through various divisions of the Board's staff, have been concentrated in a
new unit set up for the purpose in the Office of the Secretary.
In connection with the expansion of economic research in the Division
of Research and Statistics, the Board engaged Professor Alvin H. Hansen
of Harvard University on a part-time basis.
The total cost of conducting the work of the Board during the year
1940 was $1,646,690.45. Details are shown in Table 8 on pages 44-45.
For the general expenses of the Board two assessments
were
expenditures
^eyie(^ against the Federal Reserve Banks aggregating $1,704,011.35, or about one-half of one per cent
of their average paid-in capital and surplus for the year. Under an
arrangement with the Federal Reserve Bank of Atlanta, the accounts of
the Board for the year 1940 were audited by the Auditor of the Federal
Reserve Bank of Atlanta, who certified them to be correct.
BANKING STUDIES AND REPORTS TO CONGRESS

During 1940 the Federal Reserve System continued the analysis of the
banking and monetary problems outlined in the ANNUAL REPORT for

1938. A series of banking studies was completed by the Board's staff
and is now in process of publication.
At the time the Board discontinued publication of detailed statistics in
its Annual Reports, it stated that such data would be made available in
another form. A comprehensive compilation of domestic and international
banking and monetary statistics, with some earlier historical data but
devoted principally to the period since the establishment of the Federal
Reserve System, is being prepared for publication.
At the request of Congressional committees, during the year the Board
prepared a number of reports on bills pending before Congress. These
included reports on bills relating to the Home Loan Bank System, loans
to small business concerns, assignment of claims under public contracts,
power of national banks to make real estate loans, the Federal Land Bank
System, and foreign accounts in Federal Reserve Banks and insured banks.
Copies of these reports may be obtained from the Board by request.
FEDERAL RESERVE BULLETIN

Beginning with the January 1940 issue, several changes in format and
content were made in the Federal Reserve Bulletin. Each issue during
1940 contained one or more articles by members of the Board or its staff,
or officers of the Federal Reserve Banks. These articles have been a

ANNUAL REPORT OF BOARD OF GOVERNORS

medium for discussion of subjects within the field of the Bulletin, and
have supplemented the monthly review of current banking and monetary
developments and the statistical and legal data which constitute the main
substance of the Bulletin. A section has also been added to the Bulletin
in which questions of general interest relating to money and banking are
answered.
CHANGES IN SENIOR EXECUTIVE OFFICERS OF FEDERAL RESERVE BANKS

Effective as of December 31, 1940, George L. Harrison resigned as President of the Federal Reserve Bank of New York and was succeeded on
January 1, 1941, by Allan Sproul. Mr. Sproul was succeeded as First
Vice President by Leslie R. Rounds, formerly Vice President of the Bank.
The appointments of Messrs. Sproul and Rounds were for the unexpired
portions of the five-year terms ending February 28, 1941. On January 2,
1941, Mr. Harrison was appointed a member of the Federal Advisory
Council to represent the second Federal Reserve District, succeeding Leon
Fraser in that capacity.

TABLES

ANNUAL REPORT OF BOARD OF GOVERNORS
NO. 1.-STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS (IN DETAIL)
DECEMBER 31, 19401
ASSETS

Amounts in the column to the right are those shown in the Board's weekly statement, their components being
shown in the column to the left. (In thousands of dollars)
Gold certificates with Federal Reserve agents
Gold certificates in interdistrict settlement fund with Board of Governors
Gold certificates held by banks

6,379,500
11,860,837
1,510,444

Gold certificates on hand and due from U. S. Treasury
Redemption fund—Federal Reserve notes
Total gold reserves

19,760,473

Other cash:
United States notes
Silver certificates
Standard silver dollars
National and Federal Reserve Bank notes
Subsidiary silver nickels and cents

54,583
203,489
2,432
1,345
13,260

Total other cash

275,109

Total reserves

20,035,582

Bills discounted:
Secured by U. S. Government obligations, direct and guaranteed:
Discounted for member banks
For others

851

Total secured by U. S. Government obligations, direct and guaranteed
Other bills discounted:
For member banks
For others

851
1,117
947

Total other bills discounted

2,064

Total bills discounted

2,915

Industrial advances
U. S. Government securities, direct and guaranteed:
Bonds
Notes

7,538
1,284,600
899,500

Total U. S. Government securities, direct and guaranteed

2,184,100

Total bills and securities

2,194,553

Due from foreign banks
Federal Reserve notes of other Reserve Banks
Uncollected items:
Transit items
Exchanges for clearing house
Other cash items
Total uncollected items
Bank premises
Other assets:
Miscellaneous assets acquired account industrial advances
Industrial advances past due
Claims account closed banks
Total
Net
Interest accrued
Premium on securities
Deferred charges
Suspense account and miscellaneous assets
Total other assets
Total assets
1

19,750,781
9,692

Before closing books at end of year.

47
31,628
849,330
41,472
21,596
912,398
41,851
1,227
1,614
1,271
4,112
2,577
1,535
8,493
33,497
589
3,395
47,509

23,263,568

FEDERAL RESERVE SYSTEM

No. 1,—Federal Reserve Banks {In Detail)—Continued
LIABILITIES
Amounts in the column to the right are those shown in the Board's weekly statement, their components being
shown in the column to the left. (In thousands of dollars)
Federal Reserve notes outstanding (issued to Federal Reserve Banks)
Held by issuing Federal Reserve Banks and branches
Forwarded for redemption
Federal Reserve notes in actual circulation (including notes held by Treasury and
by Federal Reserve Banks other than issuing bank)
Deposits:
Member bank—reserve account
U. S. Treasurer—general account
Foreign
Other deposits:
Nonmember clearing account
Officers' checks
Federal Reserve exchange drafts
All other

6,256,650
314,459
11,194
5,930,997
14,024,784
368,470
1,132,909
365,262
65,189
170
168,923

Total other deposits

599,544

Total deposits

16,125,707

Deferred availability items
Other liabilities:
Accrued dividends unpaid
Unearned discount
Discount on securities
Reserves for estimated losses on bills and securities
Suspense account and miscellaneous liabilities

832,779
847
4
350
1,366

Total other liabilities

2,567

Total liabilities

22,892,050
CAPITAL ACCOUNTS

Capital paid in
Surplus (sec. 7)
Surplus (sec. 13b)
Other capital accounts:
Reserve for contingencies

138,578
151,720
26,839
34,627

Earnings:
Gross earnings
Current expenses

43,538
29,166

Current net earnings
Add—profit and loss
Deduct:
Dividends accrued since closing of books

14,372
13,597

Net earnings available for depreciation allowances, reserves and surplus
Total other capital accounts
Total liabilities and capital accounts

19,754

8,215
54,381
23,263,568

NO. 2.-STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK AT END OF 1939 AND 1940
[In thousands of dollars]
Total
1940

Boston
1939

1940

New York
1939

1940

Philadelphia

1939

1940

Clevela ind

1939

1940

Richmond

1939

1940

1939

ASSETS
Gold certificates on hand and due from U. S. Treasury. 19,750,781 15,199,120 1,136,171
Redemption fund—Federal Reserve notes
9,903
1,213
9,692
315,194
26,617
Other cash
275,109

865,816 9, 757,527 7,225,434 1,046,557
924
972
1,619
1,073
51,324
28,528
71,716
18,754

846,062 1,331,413 1 ,027, 910 553 ,294
816
1,071
660
1 ,108
19,963
21, 340 18 ,806
26,470

405 603
935
20 223

20,035,582 15,524,217 1,164,001

895,268 9, 809,823 7,298,769 1,066,384

873,603 1,352,036 1 ,050, 066 573 ,208

426 761

w
o
>

Total reserves
Bills discounted:
Secured by U. S. Government obligations, direct
and guaranteed
Other bills discounted

851
2,064

574
6,191

100

245
491

Total bills discounted
Industrial advances

2,915
7,538

6,765
11,044

100
974

30
1,301

1,284,600 1,351,045
899,500 1,133,225

92,213
64,568

98,098
82,283

U. S. Government securities, direct and guaranteed:
Bonds
....
Notes
Total U. S. Government securities, direct and
guaranteed

150
513

150
150

113
542

10
41

42
230

736
1,756

187
278
465
2,052

663
3,084

300
250

655
315

51
781

272
948

Q
O

379,572
265,783

419,593
351,944

107,638
75,369

115,673
97,022

128,649
90,082

140, 975
118, 247

68 ,168
47 ,732

70,076
58,778

2,184,100 2,484,270

156,781

180,381

645,355

771,537

183,007

212,695

218,731

259, 222 115 ,900

128 854

157,855
3
635
82,594
2,833
3,168

181,712
3
584
82,640
2,889
3,887

647,847
18
4,773
234,525
9,701
13,228

775,920
18
4,336
245,509
9,895
17,226

185,524
5
1,865
63,085
4,501
4,909

216,442
5
1,945
73,955
4,573
5,829

219,281
4
1,947
102,207
4,587
5,074

260, 192 116 ,732
2
4
2, 137
3 ,328
97, 538 76 ,132
,590
5, 547
2 ,756
6, 523

130 074

23,261,866 19,027,335 1,411,089 1,166,983 10, 719,915 8,351,673 1,326,273 1,176,352 1,685,136 1 ,422, 007 774 ,748

632 001

Total bills and securities
2,194,553 2,502,079
Due from foreign banks
47
47
33,454
Federal Reserve notes of other Federal Reserve Banks.
31,628
Uncollected items
867,206
912,398
Bank premises
.
..
...
40,062
41,749
47,596
Other assets
58,583
Total assets

90
2,258
2,348
2,035

4 189
64 944
545
3 486

LIABILITIES
Federal Reserve notes in actual circulation1

5,930,997 4,958,546

479,728

408,195 1,576,404 1,269,922

410,704

348,938

540,941

463,123 283,520

229,550

Deposits:
Member bank—reserve account
U. S. Treasurer—general account
Foreign bank
Other deposits

14,025,633 11,653,232
368,481
634,270
1,132,909
397,443
599,544
255,836

756,465
6,044
54,872
8,236

544.545 7,556,979 6,319,837
77,716
131,605
139,593
29,243
633,979
136,108
6,758
492,197
165,324

703,580
13,664
75,944
26,675

598,597
65,043
39,417
16,820

920,969
16,328
72,069
4,774

680,194 354,132
113,236 12,636
37,791 33,322
8,181
4,245

282,998
25,590
17,473
2,513

Total deposits
Deferred availability items
Other liabilities including accrued dividends

16,126,567 12,940,781
832,779
776,665
2,196
2,558

825,617
79,913

658,262 8,814,760 6,760,862
201,083
199,137
76,082

819,863
60,412

719,877 1,014,140
95,814
73,866

839,402 404,335
86,696 70,836

328,574
58,805

246

Total liabilities
CAPITAL ACCOUNTS
Capital paid in
Surplus (sec. 7)
Surplus (sec. 13b)
Other capital accounts

22,892,539 18,678,550 1,385,527 1,142,722 10,592,422 8,230,794 1,291,854 1,143,646 1,651,044 1,389,347 758,937

616,939

Total liabilities and capital accounts.

138,579
157,064
26,785
46,899

135,599
151,720
26,839
34,627

In actual circulation

Collateral held by agent for notes issued to banks:
Gold certificates on hand and due from U. S.
Treasurv
Eligible paper
Total collateral held
1

9,335
10,905
2,874
2,448

183

9,384
10,405
2,874
1,598

175

51,096
56,447
7,070
12,880

873

50,972
53,326
7,109
9,472

875

11,882
15,144
4,393
3,000

965

12,115
14,198
4,393
2,000

149

126

5,366
5,247
3,244
1,954

5,171
5,247
3,246
1,398

23,261,866 19,027,335 1,411,089 1,166,983 10,719,915 8,351,673 1,326,273 1,176,352 1,685,136 1,422,007 774,748

632,001

Commitments to make industrial advances
9,070
5,226
FEDERAL RESERVE NOTE STATEMENT
Federal Reserve notes:
Issued to Federal Reserve Bank by Federal Reserve
agent
6,256,650 5,274,522
Held by Federal Reserve Bank
325,653
315,976
1

269

14,198
14,323
1,007
4,564

1,803

162

930

727

502,343
22,615

429,660 1,660,126 1,362,927
93,005
83,722
21,465

429,044
18,340

368,874
19,936

5,930,997 4,958,546

479,728

408,195 1,576,404 1,269.922

410,704

6 379 500 5 371 000
1,688
1,365

510 000

440 000 1 685 000 1 385 000

440 000

6,381,188 5,372,365

510,100

244

100

479

700

331

184

440,030 1,685,331 1,385,184

372

440,372

13,830
14,323
1,007
3,500

1,140

540

761

569,587
28,646

488,021 299,792
24,898 16,272

245,605
16,055

348,938

540,941

463,123 283,520

229,550

375 000

575 000

491 000 315 000

250 000

575,000

491,000 315,010

250,057

177

375,177

Includes Federal Reserve notes held by the U. S. Treasury or by a Federal Reserve Bank other than the issuing bank.

00*OS

No. 2.—Statement of Condition—Continued
[In thousands of dollars]
Chicago

Atlanta
1940

1939

1940

St. Louis

1939

1940

1939

Minneapolis

Kansas City

1940

1939

San Francisco

Dallas
1940

1939

1940

ASSETS
Gold certificates on hand and due from U. S. Treasury... 384,635 300,831 2,899,447 2,455,662 494,577 413,898 311,096 258,566 420,712 348,852 280,159 242,196 1,135,193
410
478
509
364
1,
624
772
332
1,229
745
169
219
629
Redemption fund—Federa IReserve notes
31,885
6,576
36,352 39,906 16,482 17,783
9,268 15,285 17,418 14,010 15,259
19,055 16,661
Other cash
Total reserves
404,319 318,237 2,937,028 2,496,192 511,228 432,453 318,004 268,053 436,407 366,748 294,678 257,819 1,168,466
Bills discounted:
Secured by U. S. Government obligations, direct
and guaranteed
Other bills discounted
Total bills discounted
Industrial advances
U. S. Government securities, direct and guaranteed:
Bonds
Notes
Total U. S. Government securities, direct and
guaranteed
Total bills and securities
Due from foreign banks
Federal Reserve notes of other Federal Reserve B a n k s . . .
Uncollected items
Bank premises
Other assets
Total assets
* Less than $500.

20
190

157

15
186
201
11

109
107

50
216

216
219

743

48
667

25
906

4
146

715

931
181

40
278

150
500

545

1939

808,290
1,336
30,622

840,248

35
361

210

157
269

643
324

54,597
45,795

146,651
102,688

148,547
124,599

55,508
38,868

45,803
38,419

36,611
25,636

36,677
30,764

61,021 49,948 48,970
51,183 34,974 41,075

107,406
75,209

111,015
93,116

o
>

83,784 100,392

249,339

273,146

94,376

84,222

62,247

67,441 107,043 112,204 84,922 90,045

182,615

204,131

84,156 101,296
2
2
3,617
3,385
43,435 33,471
1,991
2,034
1,766 2,359

249,765 274,113
6
6
5,475
4,136
126,885 119,172
3,390
3,040
5,974
5,069

94,404
1

84,434
1
2,510
36,269
2,243
1,903

62,682

68,450 107,838 113,316 85,240 90,695
*
1
1
1
1
2,261
1,975 1,024
865
1,316
20,795 36,161 33,000 29,530 26,817
3,106 1,226 1,175
3,059
1,396
2,514 1,865 2,140
1,622
2,198

183,229
4
3,864
45,638
2,849
4,250

205,435
4
4,505
33,096
2,956
5,120

334

49,278
34,506

2,;

52,651
2,318
1,917

1,514
19,555
1,367
1,:

62,958
44,085

539,054 461,016 3,325,929 2,904,322 665,415 559,813 404,518 361,632 587,925 520,660 413,564 379,512 1,408,300 1,091,364

o
o

LIABILITIES
Federal Reserve notes in actual circulation1.

195,853 162,941 1,262,396 1,085,378 221,148 193,549 158,709 141,427 211,215 183,908 97,865 83,575

492,514

388,040

Deposits:
Member bank—reserve account...
U. S. Treasurer—general account..
Foreign bank
Other deposits

246,999 211,821 1,711,100 1,528,702 326,872 270,676 174,476 154,788 279,690 260,687 240,275 216,
i,794
84,537
12,547 22,462
71,030 23,893 32,195 22,857 24,452 16,861 23,077 10,926 21,233
27,123 14,222 92,992 49,169 23,248 11,784 17,049
9,346 22,473 11,784 23,248 11,784
5,324
6,813
5,481
991 2,446 9,584
7,167
6,105 13,164
5,312
7,294 5,376

754,096
16,583
56,590
24,459

583,593
18,643
29,322
20,141

Total deposits
Deferred availability items
Other liabilities including accrued dividends.

292,150 255,318 1,893,953 1,654,213 381,180 321,949 219,758 194,691 332,188 296,539 276,895 259 ,395
37,533 30,078 122,197 120,150 51,417 33,564 16,344 16,362 33,301 29,887 27,369 25,388
17
153
56
48
72
160
87
61
15
81
48

851,728
36,530
3

651,699
26,650
2

Total liabilities.
CAPITAL ACCOUNTS
Capital paid in
Surplus (sec. 7)
Surplus (sec. 13b)
Other capital accounts
Total liabilities and capital accounts
Commitments to make industrial advances
FEDERAL RESERVE NOTE STATEMENT
Federal Reserve notes:
Issued to Federal Reserve Bank byfFederal Reserve
agent
Held by Federal Reserve Bank
In actual circulation1
Collateral held by agent for notes issued to banks:
Gold certificates on hand and due from U. S.
Treasury
Eligible paper
Total collateral held
1

525,616 448,354 3,278,699 2,859,901 653,801 549,077 394,892 352,567 576,752 510,406 402,220 368,406 1,380,775 1,066,391

4,693
5,725
713
2,307

4,621
5,725
713
1,603

14,533
22,824
1,429
8,444

13,494
22,824
1,429
6,674

4,212
4,925
533
1,944

4,073
4,709
538
1,416

2,975
3,152
1,000
2,499

2,931
3,152
1,001
1,981

4,462
3,613
1,138
1,960

4,314
3,613
1,142
1,185

4,208
3,974
1,263
1

4,066
3,974
1^800

11,619
10,785
2,121
3,000

10,628
10,224
2,121
2,000

539,054 461,016 3,325,929 2,904,322 665,415 559,813 404,518 361,632 587,925 520,660 413,564 379,512 1,408,300 1,091,364
35
78
24
62
303
22
50
532
2,441
2,960

220,270 177,629 ,294,126 1,121,094 234,319 204,926 163,870 146,847 219,247 193,713 106,582 92,100 557,344
31,730 35,716 13,171 11,377 5,161
24,417 14,688
64,830
5,420 8,032 9,805 8,717 8,525
195,853 162,941 1,262,396 1,085,378 221,148 193,549 158,709 141,427 211,215 183,908 97,865 83,575 492,514

443,126
55,086

225,000 180,000 1,310,000 1,140,000 244,000 209,000 165,500 147,500 225,000 195,000 111,000 94,500
55
190
685
744
118

574,000

464,000

225,000 180,000 1,310,000 1,140,000 244,000 209,055 165,690 147,618 225,685 195,744 111,000 94,500

574,000

464,000

388,040

Includes Federal Reserve notes held by the U. S. Treasury or by a Federal Reserve Bank other than the issuing bank.

ANNUAL REPORT OF BOARD OF GOVERNORS

NO. 3.-HOLDINGS OF UNITED STATES GOVERNMENT SECURITIES BY FEDERAL RESERVE BANKS
AT END OF DECEMBER 1939 AND 1940
[In thousands of dollars]
R a t e of
interest
(per cent)
Treasury bonds of:
1941 . .
1941-43
1940-43
1943-45..
1945
1944-46 .
1943-47
1945-47
1947 . . . .
1946-48
1948 . .
1946-49
1948-51
1950-52...
1947-52
1949-52
1949-53....
1951-53
1951-54
1944-54
1953-55
1951-55
1946-56
1956-59
1955-60
1958-63
1960-65

.
... .

VA
Ws
W%
V/x
2H
3^
3^
2U
2
3
2H
3K
2V2
4M
2V2
2H
2%
2
3
VA
2%
2%
2U
2*A

Total Treasury bonds
Guaranteed bonds:
HOLC of 1942-44
HOLC of 1944-52
F F M C of 1942-47
F F M C of 1944-49
F F M C of 1944-64

2H
3
3
3

Total guaranteed bonds
Treasury notes:
Series maturing:
June 15, 1940
Dec. 15, 1940
Mar. 15, 1941
J u n e 15, 1941
Dec. 15, 1941
Mar. 15, 1942
Sept. 15, 1942
Dec. 15, 1942
June 15, 1943. . .
Sept. 15, 1943
Dec. 15, 1943
Mar. 15, 1944
June 15, 1944. .
Sept. 15, 1944
Mar. 15, 1945

1)2

m
IK
2
1%
1
%

Total holdings

Dec. 31,
1940

Change

57,027
14,669
10,675
46,523
29,258
53,132
30,443
63,681
44,156
71,870
25,197
27,746
88,536
80,715
10,698
30,378
91,644
96,000
93,394
35,078

57,000
14,600

45,952
24,025
58,200
79,894
57,006
74,399

46,500
28,700
53,000
30,400
63,300
31,800
71,800
21,400
23,600
92,800
80,000
10,600
27,500
90,300
77,900
89,700
35,000
47,800
44,000
24,500
50,400
68,300
52,800
46,300

-27
—69
-10,675
-23
-558
-132
-43
-381
-12,356
-70
-3,797
-4,146
+4,264
-715
-98
-2,878
-1,344
-18,100
-3,694
-78
+47,800
-1,952
+475
-7,800
-11,594
-4,206
-28,099

1,340,295

1,280,000

-60,295

4,000
2,000
1,000
3,550
200

2,000
1,000
1,000
600

-2,000
-1,000

10,750

4,600

-6,150

136,783
105,974
118,822
60,397
44,069
85,872
68,294
33,801
144,420

-136,783
-105,974

66,266* * -58,622
-2,097
-1,069
-1,072
-2,094
-3,001
-42,020
+35,700
-9,296
-3,598
-41
-1,105
+98,400

899,500

-232,672

1,053

-1,053

2,484,270

2,184,100

-300,170

79,096
113,498
79,441
61,705
1,132,172

-2,950
-200

58,300
43,000
84,800
66,200
30,800
102,400
35,700
69,800
109,900
79,400
60,600
98,400

Total Treasury notes
Guaranteed note:
R F C of Jan. 15, 1942

Dec. 30,
1939

FEDERAL RESERVE SYSTEM

NO. 4.-VOLUME OF OPERATIONS IN PRINCIPAL DEPARTMENTS OF FEDERAL RESERVE BANKS
1936-1940

[Number in thousaiids; amounts

1937

1936

194C

1939

1938

3
4

7
7

CO CO

NUMBER OF PIECES HANDLED*
Bills discounted:
Applications
Notes discounted
Advances made
Industrial advances:
Advances made
Commitments to make industrial advances
Bills purchased in open market for own account
Currency received and counted
Coin received and counted
Checks handled
Collection items handled:
U. S. Government coupons paid2
All other
Issues, redemptions, and exchanges by fiscal
agency department:
U. S. Government direct obligations
All other
Transfer of funds

in thousands of dollars]

2
4
2

2
3

3
.7

2 ,232,980
2 ,665,190
1 ,009,264

2 257,892
2 ,730,387
1 044,553

.2
2,089,987
2 ,676,248
1 ,098,115

.1
2 ,134,908
2 ,644 ,418
1 ,157 ,140

2,248 290'
2,705 344
1,184 356

18,806
6,968

18,566
6,705

17,802
6,389

17 ,145
6 ,177

15,444
6 094

27,919
1,538

3,892

3,456
575
853

3 ,528
1 ,162
814

3 752

951

661
980

485
780

AMOUNTS H A N D L E D
Bills discounted:
10,472
11 ,285
8 ,384
Notes discounted
6,886
16,187
226,687
61 ,500
75 ,690
Advances made
160,714
516,852
Industrial advances:
6,500
2 ,860
3 ,805
Advances made
8,519
4,932
Commitments to make industrial ad11,217
4 ,621
4.374
vances
12,583
6,978
Bills purchased in open market for own ac2,781
2 ,133
count
25,207
25,252
8 ,883,728
10 ,059,637 10 ,199,559
9 ,285 ,921 " 9 , 4 3 8 ,629
Currency received and counted
271,128
276 ,589
288 ,140
Coin received and counted
276,323
287,708 r
234 ,417,787 255 ,453,609 231 ,820,217 255 ,937 ,980 280,436 ,092
Checks handled
Collection items handled:
854,273
U. S. Government coupons paid 2
798,925
865,465
890 ,620
902 ,288
7 ,089,008
6 ,159,828J 5 ,321,443
5,068 ,674
Allother
5 ,442 ,645
Issues, redemptions, and exchanges by fiscal
agency department:
U. S. Government direct obligations.... 25 ,196,825 19,304,020 24 ,450,791 24 ,462 ,659 20,189 ,983
2 ,223,136
2 ,581,611
1 ,691,863
1,687 .194
Allother
4 ,537.228
87 ,001,630 94 ,596,861 82 ,219,749
88 ,080 ,756 92,105^910
Transfer of funds
r
1
2

Revised.
Two or more checks, coupons, etc., handled as a single item are counted as one "piece."
Includes coupons from obligations guaranteed by the United States.

NO. 5.-EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS DURING 1JHO
Total

Boston

New
York

Philadelphia

Cleveland

Richmond

Atlanta

Chicago

St.
Louis

Minne- Kansas
City
apolis

San
Dallas Francisco

CURRENT EARNINGS
Discounted bills
U. S. Government securities
Industrial advances
Commitments to make industrial advances
,
All other
Total current earnings

$14,969
$51,188
42,174,224 3,046,481 12,740,845
54,322
88,844
451,501
9,074
131,354

1,646
53,738

43,537,805 3,112,066 12,985,086

3,607,137

97,672
763,220

2,422
7,973

$4,710
3,426,176
120,867

$3,480
$2,349
$2,234
4,291,014 2,152,496 1,662,283
16,097
54,207
21,714
7,453
28,117

10,924

1,614
17,255

4,405,454 2,244,622 1,705,100

$3,051
$2,332
$2,756
$7,510
$4,656
4,616,872 1,894,530 1,237,339 1,986,708 1,624,281
14,689
818
15.265
8,848 22,477
374
196,231

3,105
19,994

573
9,570

5,054
151,556

$2,273
3,495,199
33,353

16
11,860

55,417
51,633

4,831,217 1,920,779 1,265,503 2,159,676 1,663,290

3,637,875

CURRENT EXPENSES
Operating expenses:
Salaries:
Officers
Employees
—
Retirement System contributions
for current service
Legal fees
Directors' fees and expenses
Federal Advisory Council, fees and
expenses
Traveling expenses (other than of
directors and members of Federal
Advisory Council)
Postage and expressage
Telephone and telegraph
Printing, stationery and supplies....
Insurance on currency and security
shipments
Other insurance
Taxes on bank premises
Depreciation on bank building
Light, heat, power, and water
Repairs and alterations to bank
building
Rent
Furniture and equipment
Allother

120,167
2,233,802
17,995,426 1,083,714

511,769
4,632,517

121,132
1,293,633

177,079
1,570,119

984,185
62,284
133,895

55,639
12,078
7,'

250,156
10,883
11,573

6,506
8,600

83,538
15,762
7,605

55,168
434
7,524

16,537

1,150

1,035

750

902

763

319,027
3,540,191
446,459
849,492

15,479
388,209
16,239
79,437

47,735
599,246
87,847
198,808

25,816
284,651
26,164
66,092

28,459
340,529
42,103
71,150

23,722
287,074
25,676
47,306

227,452
192,856
1,493,058
1,253,981
401,267

35,289
13,174
153,468
55,832
28,857

41,020
21,306
482,692
244,857
75,236

20,430
16,554
77,617
126,531
30,040

21,563
15,010
142,155
155,124
43,275

162,878
143,626
334,550
576,297

5,067
96
18,985
34,945

24,859
84,620
-9,945

28,151
720
31,253
74,363

15,333
68,549
24,377
55,217

7,316,214

2,308,357

933,518

202,536

31,367,263 2,125,061
Total operating expenses
Less reimbursements for certain
210,575
fiscal agency and other expenses... 5,416,317

143,483 141,593
956,1451,004,642

111,167 171,311
581,362 1,004,308

125,954
981,928
51,474
-17
9,702

211,975
1,411,740

1,368

3,350

127,202
566
7,249

59,187
151
12,491

33,457
9,243
11,681

61,272
59
19,991

1,590

1,600

1,381

1,6

25,150
213,902
43,372
53,123

36,053
438,345
30,995
90,644

23,379
166,881
35,487
47,635

21,898
138,968
18,682
33,694

19,649
217,207
41,029
49,241

21,864
170,637
33,938
46,654

294,542
44,927
65,708

18,708
11,679
69,549
83,403
24,232

12,495
15,074
63,458
42,509
35,203

25,525
16,529
161,233
98,177
40,394

5,863
15,761
52,391
42,290
25,717

7,413
14,801
67,755
28,846
19,574

9,080
19,410
91,289
191,019
28,785

7,508
15,097
33,431
77,501
24,844

22,558
18,461
98,020
107,892
25,110

4,818
17,304
22,351
36,270

11,841
1,386
28,188
56,632

8,553

12,298
3,120
12,139
52,526

13,579

"iM89
85,473

"ii;523

13,000
1,682
13,923
42,165

12,574
1,115
34,934
43,887

12,805
49,654
35,868
65,203

961,115

468,856

251,882

345,554

518,614

56,086
673
14,290

1,877,849 1,835,609 1
264,348

240,875 157,297
2,457,306 1,018,012

236,001

655,976

39,561
3,883,098 1 ,744,225 1 ,164,585 1,996,116 1,694,393

81,652
5,946
15,953

1,601,187
367,342

Net operating expenses
Assessment for expenses of Board of
Governors
Federal Reserve currency:
Original cost
Cost of redemption
Total current expenses.

25,950,946 1,914,486

2,105,821

2,613,5011

1,164,593

2,921,983 1,275,369

1,704,011

122,453

602,890

165,500

158,308

74,243

59,879

204,768

50,617

1,352,281
158,239

121,328
11,254

323,951
31,884

85,476
10,755

124,225
14,084

75,223j

47,752
11,024

319,084
25,329

40,436
6,786

29,165,477 2,169,521

7,341,421

2,367,552

43,537,805 3,112,066 12,985,086
29,165,477 2,169,521 7,341,421

3,607,137
2,367,552

14,372,328

942,545

5,643,665

11,696,656
2,240,674

851,604
149,405

13,937,330 1,001,009

3,408,167
637,888
4,046,055

31,378

102,972

912,703 1 ,650,562 1,175,779

2,233,845

50,509

127,156

30,114
5,862
984,934 1,747,994 1,262,264

116,794
14,765
2,492,560

4,405,454 2,244,622 1,705,100
2,910,118 1,761,493 1,283,248

4,831,217 1,920,779 1,265,50312,159,676 1,663,290
3,471,164 1,373,208 984,934 1,747,994 1,262,264

3,637,875
2,492,560

1,239,585

1,495,336

483,129

421,852

1,360,053

547,571

280,569

411,682

401,026

1,145,315

979,180
517,747

1,163,699
175,872

608,518
72,575

496,545
92,519

1,292,363
237,658

528,208
60,998

363,421
53,782

570,275
52,381

449,203
52,951

985,473
136,898

1,496,927

1,339,571

681,093

589,064

1,530,021

589,206

417,203

622,656

502,154

1,122,371

17,906

i110,150

30,500

26,509

499

16,000

34,880

282,000
100

150,000
205

3,021

543,738
45
271

554

282,100

150,205

3,520

45 560,009

35,434

12,419

2,910,118 1,761,493 1,283,248

3,471,164 1,373,208

38,397
28,215
5,619

49,291
39,683
8,458

PROFIT AND LOSS
Current earnings (above)...
Current expenses (above)...
Current net earnings.
Additions to current net earnings:
Profits on sales of U. S. Government
securities
All other
Total additions
Deductions from current net earnings:
Losses and reserves for losses on industrial advances (net)
Charge-offs and special depreciation
on ban!
nk premises.
All other..
Total deductions.
Net additions
Net earnings
Paid U. S. Treasury (sec. 13b)
Dividends paid
Transferred to surplus (sec. 13b)
Transferred to surplus (sec. 7)

82,152
8,214,971
-54,456
17,617,358

3,065,085
- 3 8 ,r~~
6,528,872

250,494

570

31,767

1,678

2,449,633

31,948

134,739

19,584

11,487,697

969,061

3,911,316

25,860,025 1,911,606

9,554,981

56,097
714,329

15,108
842,330

23
560,433

Net recoveries.

266

913,600

291,674

1,477,343

425,971

389,419

562,289

1,247,921

439,001

413,683

622,611 -57,855

1,086,937

2,716,928

1,921,307

872,548

984,141

2,607,974

986,572

694,252 1,034,293

343,171

2,232,252

317,760
-1,721
i,' 946; 502 " i,' 063 ^ 869556,509

279,310

10,924
826,919

248,242
-5,675
744,005

177,401
-385
517,236

247,577
-3,434
99,028

i,'566!470

Surplus (sec. 7), January 1
151,720,413 10,404,596 53,326,285 14,197,796
Addition, as above
17,617,358 1,351,150 6,528,872 1,946,502
Transferred to reserves for contingencies -12,272,706 -850,000 -3,408,167 -1,000,000
Surplus (sec. 7), Dec. 31

812,926
110,824 ' 2 6 U 7 4

1,788,664
410,475

157,065,065 10,905,746 56,446,990 15,144,2

26,775

1,770,131

263,803
-4,265
774,755

671,782

5,724,628 22,824, 268 4 ;,709,179 3 ,152,420 3,612,6813 ,974,462 10,224,089
99,028 1,560,470
704,831 1,770,131 744,005 517,236 774,755
-704,831 -1,770,131 -528,208 -517,236 -774,755 -99,000 -1,000,000
14,322,790 5,247,219 5,724,628 22,824,268 4,924,976 3,152,420 3,612,6813,974,490 10,784,559

NO. 6.-CURRENT EARNINGS, CURRENT EXPENSES, AND NET EARNINGS OF FEDERAL RESERVE BANKS AND DISPOSITION OF NET EARNINGS, 1 914-1940
Disposition of net earnings

Earnings and expenses

Transferred
to surplus
(Sec. 7)

Direct
charges
to surplus
(Sec. 7)8

Current
earnings

Current
expenses

Net
earnings 1

$2,173,252
5,217,998
16,128,339
67,584,417
102,380,583

$2,320,586
2,273,999
5,159,727
10,959,533
19,339,633

$-141,459
2,750,998
9,582,067
52,716,310
78,367,504

$217,463
1,742,774
6,804,186
5,540,684
5,011,832

$1,134,234
2,703,894

$1,134,234
48,334,341
70,651,778

1920
1921
1922
1923
1924

181,296,711
122,865,866
50,498,699
50,708,566
38,340,449

28,258,030
34,463,845
29,559,049
29,764,173
28,431,126

149,294,774
82,087,225
16,497,736
12,711,286
3,718,180

5,654,018
6,119,673
6,307,035
6,552,717
6,682,496

60,724,742
59,974,466
10,850,605
3,613,056
113,646

82,916,014
15,993,086
-659,904
2,545,513
-3,077,962

1925
1926
1927
1928
1929

41,800,706
47,599,595
43,024,484
64,052,860
70,955,496

27,528,163
27,350,182
27,518,443
26,904,810
29,691,113

9,449,066
16,611,745
13,048,249
32,122,021
36,402,741

6,915,958
7,329,169
7,754,539
8,458,463
9,583,913

59,300
818,150
249,591
2,584,659
4,283,231

2,473,808
8,464,426
5,044,119
21,078,899
22,535,597

1930
1931
1932
1933
1934

36,424,044
29,701,279
50,018,817
49,487,318
48,902,813

28,342,726
27,040,664
26,291,381
29,222,837
29,241,396

7,988,182
2,972,066
22,314,244
7,957,407
15,231,409

10,268,598
10,029,760
9,282,244
8,874,262
8,781,661

17,308
2,011,418
$-60,323

-2,297,724
—7,057,694
11,020,582
-916,855
6,510,071

139,299,557

1935
1936
1937
1938
1939

42,751,959
37,900,639
41,233,135
36,261,428
38,500,665

31,577,443
29,874,023
28,800,614
28,911,608
28,646,855

9,437,125
8,512,433
10,801,247
9,581,954
12,243,365

8,504,974
7,829,581
7,940,966
8,019,137
8,110,462

27,062
102,880
67,304
-419,140
-425,653

607,422
352,524
2,616,352
1,862,433
4,533,977

731,313
448,835
1,964,919

All Federal Reserve Banks by years:
1914-15
1916
1917
1918
1919

Dividends
paid

Franchise tax Paid to U. S. Transferred
paid to U. S.
to surplus
Treasury
Treasury 2
(Sec. 13b)
(Sec. 13b)

1940
Total-1914-1940

43,537,805

29,165,477

25,860,025

8,214,971

1,359,347,923

646,637,436

648,117,900

186,531,536

$297,667
227,448
176,625
119,524
24,579

149,138,300

2
d
>•

$500', ooo'

82,152

-54,456

17,617,358

12,272,706

927,995

4-762,326

312,282,395

155,217,330

o
o

Aggregate for each Federal Reserve Bank
1914-1940:
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

$91,634,893
400,345,682
106,548,869
121,731,751
64,971,332
63,283,065
187,369,386
58,533,605
43,961,760
65,236,632
48,432,341
107,298,607

$46,729,854
157,500,677
49,638,701
59,864,090
35,302,641
29,824,170
84,162,367
33,004,303
23,678,890
39,649,940
29,146,844
58,134,959

$42,966,628 i $13,630,640
233,739,699
62,686,555
54,746,873 j 17,877,815
53,864,535 ; 18,826,577
25,656,025
7,953,546
27,278,972
6,647,348
91,575,740
21,796,514
20,330,923
6,718,901
17,881,147
4,692,070
22,146,493
6,330,140
15,120,474
6,014,853
42,810,391
13,356,577

$7,111,395
68,006,262
5,558,901
4,842,447
6,200,189
8,950,561
25,313,526
2,755,629
5,202,900
6,939,100
560,049
7,697,341

$91,766
82,987
349,985
51,976
66,714
23,876
111,103
5,948
34,319
35,204
74,117

$-3,155
-682,388
194,990
-8,446
-176,443
-44,304
11,681
-13,844
-7,447
-7,887
10,821
-35,904

$22,135,982
103,646,283
30,765,182
30,151,981
11,612,019
11,701,491
44,342,916
10,864,289
7,959,305
8,849,936
8,460,634
21,792,377

$11,230,237
47,199.295
15,620,883
15,829,192
6,364,800
5,976,863
21,518,648
5,939,311
4,806,884
5,237,254
4,486,145
11,007,818

Current earnings less current expenses, plus other additions and less other deductions.
T h e Banking Act of 1933 eliminated t h e provision in t h e Federal Reserve Act requiring p a y m e n t of a franchise tax.
Direct charges to surplus (sec. 7) represent amounts transferred to reserves for contingencies, except as follows: 1927—$500,000, depreciation on b a n k premises; 1934—$139,299,557,
cost of Federal Deposit Insurance Corporation stock purchased by Federal Reserve Banks.
4
In 1935 t h e Federal Reserve B a n k of Boston credited $1,810 and the Federal Reserve Bank of St. Louis charged $1,176 direct to surplus (sec. 13b). Total payments received
from t h e Secretary of t h e Treasury under section 13b of t h e Federal Reserve Act to t h e end of 1940 and credited to surplus (sec. 13b) a m o u n t e d to $27,546,311.
2

NO. 7-NUMBER AND SALARIES OF OFFICERS AND EMPLOYEES OF FEDERAL RESERVE BANKS

(December 31, 1940)
Other officers

President

;

Federal Reserve B a n k
(including branches)
Annual salary

Number

Annual
salaries

Total

Number

Annual
salaries

$934,805
3,923,886
1,152,328
1,404,351

77
410
81
87

$116,855
755,081
136,000
165,893

720
2,520
793
956

$1,172,660
5,194,567
1,417,028
1,748,744

541
404
1,206
509

783,383
542,373
1,785,652
719,388

115
323
621
166

161,969
409,417
876,164
227,745

674
750
1,849
695

1,089,752
1,095,910
2,898,666
1,104,633

;

273
482
379
699

420.091
743,448
596,431
1,150,031

154
190
252
177

201,649
266,139
351,059
277,109

441
692
647
903

734,740
1,179,687
1,074,390
1,646,740

8,746

14,156,167

2,653

3,945,080

11,640

20,357,517

$91,000
465,600
103,700
153,500

Richmond
Atlanta
Chicago
St. Louis

21,000
20,000
35,000
20,000

17
22
21
19

123,400
124,120
201,850
137,500

Minneapolis
Kansas C i t y . . .
Dallas
San Francisco.

25,000
25,000
18,000
25,000

13
19
15
26

88,000
145,100
108,900
194,600

319,000

229

1,937,270

Annual
salaries

Employees whose salaries
are reimbursed to bank

633
2,070
700
850

9
39
11
18

Total..

Employees, except those
whose salaries are reimbursed to b a n k

dumber

$30,000
50,000
25,000
25,000

Boston
New York
Philadelphia...
Cleveland

ftJ

•
•
!
;

ANNUAL REPORT OF BOARD OF GOVERNORS

NO. 8.—RECEIPTS AND DISBURSEMENTS OF THE BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM FOR THE YEAR 1940
General fund account:
Balance January 1, 1940:
Available for general expenses of the Board
Available for expenses chargeable to Federal Reserve Banks

$150,476.48
53,708.15

Total

$204,184.63
RECEIPTS

Available for general expenses of the Board:
Assessments on Federal Reserve Banks for estimated general
expenses of the Board
$1,704,011.35
Subscriptions to the Federal Reserve Bulletin
6,308.54
Other publications, sales
1,558.14
Reimbursements for leased wire service
36,528.80
Miscellaneous receipts, refunds, and reimbursements
25,122.31
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 printing Federal Reserve notes
Expenses of leased wire system (telegraph)
Expenses of leased telephone lines
Expenses of Federal Reserve Issue and Redemption
Division (office of Comptroller of the Currency)
Miscellaneous expenses

1,773,529.14
844,208.83
51,006.90
16,095.69
51,811.16
8,101.08

Total receipts available for expenses chargeable to Federal Reserve
Banks
Total receipts

971,223.66

Total available for disbursement

2,744,752.80
2,948,937.43

DISBURSEMENTS
For expenses of the Board:
General expenses of 1940 (per detailed statement)
$1,646,690.45
Less accounts unpaid December 31, 1940
24,393.61
Expenses of 1939 paid in 1940
Expenses of leased wire service, reimbursable
Plans for alteration and addition to building
Miscellaneous refunds and reimbursable expenses
Total disbursements for expenses of the Board
For expenses chargeable to Federal Reserve Banks:
Cost of printing Federal Reserve notes
Expenses of leased wire system (telegraph)
Expenses of leased telephone lines
Expenses of Federal Reserve Issue and Redemption Division
(office of Comptroller of the Currency)
Miscellaneous expenses

1,622,296.84
27,959.99
40,239.20
51,243.58
15,740.39
1,757,480.00
882,062.73
51,006.90
15,679.19
52,994.20
2,877.69

Total disbursements for expenses chargeable to Federal Reser ve Banks. 1,004,620.71
Total disbursements
Balance in general fund account December 31, 1940:
Available for general expenses of the Board
Available for expenses chargeable to Federal Reserve Banks

2,762,100.71
166,525.62
20,311.10

FEDERAL RESERVE SYSTEM

No. 8.—Receipts and Disbursements—Continued
PERSONAL SERVICES

Salaries
Retirement contributions
Total Personal Services
NON-PERSONAL SERVICES

Traveling Expenses
Postage and Expressage
Telephone and Telegraph
Printing and Binding
Stationery and Supplies
Furniture and Equipment
Books and Subscriptions
Light, Heat, Power and Water
Repairs and Alterations (Building and Grounds)
Rental and Repairs (Furniture and Equipment)
Medical Service and Supplies
Insurance
Miscellaneous
Total Non-Personal Services
GRAND TOTAL

$1,283,803.46
58,785.52
1,342,588.98
67,416.41
1,430.71
60,524.65
67,851.66
16,041.36
25,145.49
6,434.77
24,487.42
17,056.13
2,578.15
342.21
2,402.66
12,389.85
304,101.47
$1,646,690.45

ANNUAL REPORT OF BOARD OF GOVERNORS

NO. 9.-FEDERAL RESERVE BANK DISCOUNT, INTEREST, AND COMMITMENT RATES, AND BUYING
RATES ON ACCEPTANCES
iPer cent per annum]
In effect December 31, 1940
Min- KanBos- New Philadel- Cleve- Rich- At- Chi- St.
ton York phia land mond lanta cago Louis neap- sas
olis ICity
Rediscounts for and advances to member banks
under sees. 13 and 13a of
the Federal Reserve Act
except last paragraph of
sec. 13:
Secured by direct and
eligible
guaranteed
obligations of the
1
United States
1
All other
Advances to member banks
under sec. 10 (b) of the
2
Federal Reserve Act
Advances to individuals,
partnerships or corporations, secured by direct
obligations of the United
States (last paragraph of
sec. 13 of the Federal Reserve Act):
To banks (including
1
nonmember banks)...
To others
234
Advances direct to industrial or commercial organizations under sec. 13b
of the FederalReserve Act. 334~6
Advances to or in participation with financing institutions under sec. 13b
of the Federal Reserve Act:
On portion for which
institution
is obli3
gated 3
On remaining portion 3 .. 334
Commitments to make advances under sec. 13b of
the Federal Reserve Act .. 34-1
Minimum buying rates on
prime bankers' acceptances payable in dollars... (10)
1- 15 days 9
16- 30 days
31- 45 days
46- 60 days
61- 90 days
91-120 days
121-180 days
1
2
3

1
(i)l

134
1M

334

SanFrancisco

1
134

2
\y> ( H34

134

1
4

13^
3

1
234

1
2A

134

3-6 334-

3-6;

4-6

3-6 134-2
3-6

3-6
3-6

4
4

4
4-6

3-4
4-5

1-2 ! (8)2

A-2

234

334

234

4-6

2//2

3/2

(4)3
(6)4

4
4-6

1-2

,
,l a s

134
134

4-6 334-6 334-5

2 3
2 5

(5)

34-2
(10)

(10)

4-6

134
1
1
134 (*)134 (1)l34

134
134

534

(10)

34 -2

(7)1

(10)

34
y2
l/o

34
K
l

The same rate applies to United States Government securities bought under repurchase agreement.
234 per cent to other lenders than banks.
The Federal Reserve Banks of New York, Philadelphia, Richmond, Atlanta, Chicago, Minneapolis,
Kansas City, and Dallas may charge same rate as charged borrower by financing institution, if lower than
rate4 shown.
One per cent less than rate charged borrower by financing institution with minimum of three per cent
(see5 note 3).
Same as to borrower.
8
One-half of one per cent less than rate charged borrower by financing institution with minimum of four
per 7cent (see note 3).
Minimum charge one-fourth of one per cent.
8
Minimum charge one-half of one per cent.
9
This rate also applies to acceptances bought under repurchase agreement, which agreements are always
for a10 period of 15 days or less.
The same minimum rates in effect at the Federal Reserve Bank of New York apply to purchases, if any,
made by other Federal Reserve Banks.

FEDERAL RESERVE SYSTEM
NO. 10.-MAXIMUM RATES ON TIME DEPOSITS

Maximum rates that may be paid by member banks as established by the Board of Governors under provisions
of Regulation Q
[Per cent per annum]
Nov. 1, 1933, Feb. 1, 1935,
to
Jan. 31, 1935 Dec. 31, 1935
Savings deposits
Postal Savings deposits
Other time deposits payable in:
6 months or more
90 days to 6 months
Less than 90 days

In effect
beginning
Jan. 1, 1936
2H
2H

2K
IV*
2K

NOTE.—Maximum rates that may be paid by insured nonmember banks as established by the Federal
Deposit Insurance Corporation, effective February 1, 1936, are the same as those in effect for member banks.
In some States the maximum rates established by the Board and the Federal Deposit Insurance Corporation
are superseded by lower maximum rates established by State authority.

NO. 11.-MEMBER BANK RESERVE REQUIREMENTS
[Per cent of deposits]
Classes of deposits and banks
On net demand deposits: 1
Central reserve city...
Reserve city
Country

June 21, 1917- Aug. 16, 1936- Mar. 1, 1937- May 1, 1937- Apr. 16, 1938
Aug. 15, 1936 Feb. 28, 1937 Apr. 30, 1937 Apr. 15, 1938
and after
13
10
7

26
20
14

22
17
12

On time deposits:
All member b a n k s . . . .
1
Gross demand deposits minus demand balances with domestic banks (except private banks and Amercan branches of foreign banks) and cash items in process of collection.

NO. 12.-MARGIN REQUIREMENTS*
Prescribed by Board of Governors of the Federal Reserve System in accordance with
Securities Exchange Act of 1934
[Per cent of market value]

For extensions of credit by brokers and dealers on ] isted securities, under
Regulation T
E^or short sales, under Regulation T
For'loans by banks on stocks, under Regulation tjr

Apr. 1, 1936Oct. 31 1937

Nov. 1, 1937
and after

55
(2)
55

40
50
40

1
Regulations T and U limit the amount of credit that may be extended on a security by prescribing a
maximum loan value, which is a specified percentage of its market value at the time of the extension; the
"margin requirements" shown in this table are the difference between the market value (100%) and the maximum
loan value.
2
Requirement under Regulation T was the margin "customarily required" by the broker.
3
Regulation U became effective May 1, 1936.
NOTE.—Regulations T and U also provide special margin requirements on "omnibus" accounts and loans
to brokers and dealers.

NO. 13.—ALL MEMBER BANKS-CONDITION ON DECEMBER 31, 1940, BY CLASSES OF BANKS
[Amounts in thousands of dollars]

ASSETS
Loans (including overdrafts)
United States Government direct obligations
Obligations guaranteed by United States Government
Obligations of States and political subdivisions
Obligations of Government corporations and agencies not guaranteed by United States
Other bonds, notes, and debentures
Corporate stocks (including Federal Reserve Bank stock)
Total loans and investments
Reserve with Federal Reserve Banks
Cash in vault
Demand balances with banks in United States (except private banks and American branches
of foreign banks)
Other balances with banks in United States
Balances with banks in foreign countries
Due from own foreign branches
Cash items in process of collection
Bank premises owned and furniture and fixtures
Other real estate owned
Investments and other assets indirectly representing bank premises or other real estate
Customers' liability on acceptances
Income accrued but not yet collected
Other assets
Total assets

All
member
banks

All
national
member
banks

All State
member
banks

15,320,598
12,337,408
3,485,638
3,012,693
499,355
2,053,842
416,533

10,004,346
7,642,011
2,093,305
2,004,686
322,085
1,368,600
212,881

37,126,067

23,647,914

5,316,252
4,695,397
1,392,333
1,008,007
177,270
685,242
203,652
13,478,153
6,004,819
278,585

6,084,424
100,881
11,311
2,182
2,783,960
914,425
228,243
111,146
83,052
105,026
124,082

4,651,188
76,236
8,031
2,086
1,663,795
592,759
108,191
62,415
47,148
60,238
41,088

1,433,236
24,645
3,280
96
1,120,165
321,666
120,052
48,731
35,904
44,788

62,657,678

39,660,564

44,110,412
29,576,064
616,118
2,723,660
9,581,199
700,073
913,298

27,360,631
17,913,896
459,225
1,993,674
6,119,964
355,691
518,181

13,991,733
991,146

7,986,914
712,561

Central reserve city
member banks1
New York

Chicago

Reserve
city
member
banks1

3,383,623
4,429,224
1,614,718

696,100
1,194,097
112,410
188,262
40,991
117,710
27,744
2,377,314
1,050,980
41,829

5,931,494
4,154,998
1,048,840
984,083
184,509
555,901
152,689
13,012,514
4,026,746
396,124

5,309,381
2,559,089
709,670
1,145,648
107,622
904,078
90,418
10,825,906
1,857,356
451,617

120,485
1,641
6,264
96
1,136,669
200,215
23,922
10,071
57,432
37,757
25,024

315,615
3,667
355

2,940,554
61,938
1,521

165,349
19,740
3,057
803
2,988
7,848
5,651

2,707,770
33,635
3,171
2,086
1,110,078
322,055
84,692
79,896
19,919
41,048
33,428

22,997,114

19,688,136

3,995,196

21,873,162

17,101,184

16,749,781
11,662,168
156,893
729,986
3,461,235
344,382
395,117

16,919,623
11,357,143
47,856
370,195
4,031,856
641,205
471,368

3,201,042
1,905,172
89,826
174,203
996,958
7,523
27,360

14,987,013
9,468,202
327,333
995,339
3,919,160
49,373
227,606

9,002,734
6,845,547
151,103
1,183,923
633,225
1,972
186,964

694,700

166,233
476,153
145,682
10,910,333
7,056,651
101,576

Country
member
banks1

371,864
372,415
116,572
20,376
2,713
18,373
59,979

LIABILITIES
Demand deposits—Total.
Individuals, partnerships, and
corporations
United States Government2
States and political subdivisions
Banks in United States
Banks in foreign countries
Certified and officers' checks, cash letters of credit and travelers' checks, etc

Time deposits—Total
Individuals, partnerships, and corporations:
Savings deposits
Certificates of deposit
Christmas savings and similar accounts
Open accounts
Postal savings2
States and political subdivisions
Banks in United States
Banks in foreign countries
Total deposits
Due to own foreign branches
Bills payable, rediscounts, and other liabilities for borrowed money.
Acceptances outstanding
,
Dividends declared but not yet payable
Income collected but not yet earned
Expenses accrued and unpaid.
Other liabilities
Total liabilities.

12,319,198

8,426,642

3,892,556

824,032

508,877

4,857,400

6,128,889

10,266,149
654,941
27,853
737,865
55,987
435,075
135,226
6,102
56,429,610
182,067
3,282
97,461
38,953
67,666
77,946
63,177

7,107,266
505,293
18,885
295,315
42,600
359,321
93,040
4,922
35,787,273
145,970
3,127
54,483
24,561
46,380
48,030
22,494

3,158,883
149,648
8,968
442,550
13,387
75,754
42,186
1,180
20,642,337
36,097
155
42,978
14,392
21,286
29,916
40,683

403,053
10,948
1,086
353,155

435,766
29,305
201
30,805
4,500
8,300

330
4,352
17,743,655
182,067

5,354,528
464,557
16,718
81,015
32,547
150,154
29,370

3,709,919

4,072,802
150,131
9,848
272,890
18,940
225,513
105,526
1,750
19,844,413

15,131,623

67,203"
17,997
9,591
16,743
35,803

3,446
980
1,955
8,300
850

1
23,950
11,920
35,367
35,336
18,163

3,281
2,862
8,056
20,753
17,567
8,361

56,960,162

36,132,318

20,827,844

18,073,059

3,725,450

19,969,150

15,192,503

I 2,356,258
j 2,279,621
721,444
295,839
44,354

1,523,437
1,307,038
467,711
194,729
35,331

832,821
972,583
253,733
101,110
9,023

548,062
827,225
191,070
45,501
3,219

101,700
103,690
29,160
35,019
177

787,150
720,657
251,088
128,478
16,639

919,346
628,049
250,126
86,841
24,319

si," ios

CAPITAL ACCOUNTS
Capital (see page 5)
lrplu
Surplus
Undivided profits.
Reserves for contingencies.
Other capital accounts

•

Total capital accounts
Total liabilities and capital accounts
Net demand deposits subject to reserve..
Demand deposits—adjusted3
Number of banks

5,697,516

3,528,246

2,169,270

1,615,077

269,746

1,904,012

1,908,681

62,657,678

39,660,564

22,997,114

19,688,136

3,995,196

21,873,162

17,101,184

35,261,636
30,429,062
6,486

21,060,469
18,761,956
5,144

14,201,167
11,667,106
1,342

15,662,469
11,062,037
36

2,721,247
1,941,386
13

11,173,420
9,581,069
348

5,704,500
7,844,570
6,089

1
Banks are classed according to the reserves which they are required to carry (see table 11). Some banks classed as "country banks" are in outlying sections of reserve cities or
central reserve cities, and some banks classed as "reserve city banks" are in outlying sections of central reserve cities. Figures for each class of banks include assets and liabilities2 of their domestic branches, whether located within or outside the cities in which the parent banks are located.
United States Treasurer's time deposits, open accounts, are combined with postal savings (time) deposits.
3
Demand deposits other than interbank and United States Government, less cash items reported as in process of collection.

NO. 14.-ALL MEMBER BANKS-CLASSIFICATION OF LOANS, INVESTMENTS, REAL ESTATE, AND CAPITAL ON DECEMBER 31,1940, BY CLASSES OF BANKS
[In thousands of dollars]
All
member
banks

All
national
member
banks

All State
member
banks

Loans—Total
Commercial and industrial loans
Agricultural loans
Commercial paper bought in open market
Bills, acceptances, etc. payable in foreign countries
Acceptances of other banks, payable in United States
Reporting banks' own acceptances
Loans to brokers and dealers in securities
Other loans for purchasing or carrying securities
Real estate loans: On farm land
On residential property
On other properties
Loans to banks
All other loans
Overdrafts

15,320,598 10,004,346
6,203,515
4,016,691
728,640
865,031
221,056
321,473
4,291
3,038
55,875
30,134
41,369
74,418
274,021
642,448
652,121
369,377
233,753
299,188
1,363,227
2,118,475
490,276
I
810,344
22,683
43,106
I 3,222,650 2,205,139
4,942
|
7,603

5,316,252
2,186,824
136,451
100,417
1,253
25,741

United States Government direct obligations—Total
Treasury bills
Treasury notes
Bonds maturing in 5 years or less
Bonds maturing in 5 to 10 years
Bonds maturing in 10 to 20 years
Bonds maturing after 20 years

12,337,408
651,986
2,594,269
1,367,488
2,885,694
4,344,955
493,016

7,642,011
445,062
1,720,130
727,530
1,524,940
2,908,212
316,137

4,695,397

!
i
|
I
I
I

3,485,638
2,329,749
840,575
1,490,350
463,128
691,585
499,355
377,790
129,171
164,414
205,770

Obligations guaranteed by Uffted States Government—Total
Total amount maturing in 5 years or less
Reconstruction Finance Corporation
Home Owners' Loan Corporation
Federal Farm Mortgage Corporation
Other Government corporations and agencies
Obligations of Government corporations and agencies* not guaranteed by United States-

Total

Total armunt maturing in 5 years or less
Federal Land banks
Federal Intermediate Credit Banks
Other Government corporations and agencies

Central reserve city
member banks 1
New York

Chicago

Reserve
city
member
banks 1

Country
member1
banks

3 ,383,623
2 ,025,344
6,445
4,596
195
49,171
45,686
465,031
189,680
61
63,402
66,081
25,219
440,395
2,317

696,100
475,797
4,974
14,384
547
23
1,708
41,943
54,043
339
9,967
8,305
11
83,841
218

5,931,494
2,435,554
263,270
120,444
2,769
4,038
25,855
114,952
207,121
90,617
964,596
380,644
14,690
1,304,093
2,851

5,309,381
1,266,820
590,402
182,049
780
2,643
1,169
20,522
201,277
208,171
1,080,510
355,314
3,186
1,394,321
2,217

206,924
874,139
639,958
1,360,754
1,436,743
176,879

4 ,429,224
207,218
1,245,135
596,130
1,232,622
1,058,141
89,978

1,194,097
296,869
145,278
51,886
117,497
482,847
99,720

4,154,998
103,044
770,805
469,818
922,063
1,711,562
177,706

2,559,089
44,855
433,051
249,654
613,512
1,092,405
125,612

2,093,305
1,32^,833
338,143
1,069,118
255,761
430,283

1,392,333
1,004,916
502,432
421,232
207,367
261,302

1,614,718
1 ,244,657
513,278
644,407
155,876
301,157

112,410
104,931
57,316
19,332
3,804
31,958

1,048,840
590,030
162,241
503,849
163,699
219,051

709,670
390,131
107,740
322,762
139,749
139,419

322,085
239, W
82,943
98,937
140,205

177,270
138,648
46,228
65,477
65,565

166,233
139,152
35,350
77,816
53,067

40,991
25,125
15,865
12,419
12,707

184,509
153,224
30,339
62,263
91,907

107,622
60,289
47,617
11,916
48,089

33,049

368,427
282,744
65,435
755,248
320,068
20,423
1,017,511
2,661

984,083
3,917
76,812
530,662
372,692

1,145,648
2,341
68,532
601,034
473,741

117,710
1,153
59,767
32,617
32,931
32,369
8,238
11,555

555,901
16,970
160,207
194,136
134,013
148,898
35,040
43,814

904,078
20,881
141,601
343,328
261,806
201,784
36,400
60,760

145,682
40,905
41,363
2,487
60,581
346

27,744
6,153
277
40
21,260
14

152,689
45,074
52,500
7,732
46,534
849

90,418
46,407
5,519
8,605
29,602
285

441,718
305,245
16,421
4,802
49,490
65,760

224,137
199,542
673
17
8,253
15,652

22,797
19,549
191
217
889
1,951

406,747
292,405
29,650
6,951
25,543
52,198

488,987
331,122
41,293
11,261
51,543
53,768

62,415
51,099
11,316

48,731
26,732
21,999

10,071
8,835
1,236

803
702
101

79,896
53,670
26,226

20,376
14,624
5,752

2,359,291
40,758
247,726
18,243
2,052,564

1,525,673

833,618
40,758
65,827
4,605
722,428

548,062
375
8,868

101,700

181,899
13 638
1,330,136

538,819

100,000

787,150
25,450
99,543
2 150
660,007

922,379
14,933
137,615
16,093
753,738

343,093
23,894

233,160
15,523

109,933
8,371

21,992

1,700

135,936
2,150

183,465
21,744

Obligations of States and political subdivisions—Total
In default
Without specific maturity
Maturing in 5 years or less
Maturing after 5 years

3,012,693
6,735
220,432
1,788,648
996,878

2,004,686
6,032
187,625
1,067,938
743,091

1,008,007
703
32,807
720,710
253,787

694,700
477
11,136
559,454
123,633

Other bonds, notes, and debentures—Total
Total amount in default
Total amount maturing in 5 years or less
Railroads
Public utilities
Industrials
Other domestic corporations
Foreign—public and private

2,053,842
55,690
579,907
701,663
499,920
539,702
147,774
164,783

1,368,600
88,464
318,597
472,120
335,280
375,181
73,694
112,325

685,242
88,836
261,310
229,543
164,640
164,521
74,080
52,458

476,153
16,686
218,332
131,582
71,170
156,651
68,096
48,654

416,533
138,539
99,659
18,864
157,977
1,494

212,881
84,551
47,204
6,715
73,525
886

203,652
53,988
52,455
12,149
84,452
608

1,142,668
842,618
71,807
18,446
86,228
123,569

700,950
537,373
55,386
13,644
36,738
57,809

Corporate stocks—Total
Federal Reserve Banks
Affiliates of reporting banks
Other domestic banks
Other domestic corporations
Foreign corporations
Bank premises, furniture and fixtures, and other real estate—Total
Bank premises
Furniture and fixtures
Farm land (including improvements)
Residential properties
Other real properties
Assets indirectly representing bank premises or other real estate—Total
Investments
Other assets
Capital:
Par or face value—Total
Capital notes and debentures
First preferred stock
Second preferred stock
Common stock
Retirable value of: First preferred stock
Second preferred stock
For footnote see preceding table.

111,146
77,831
33,315.

188,262
" " 63,952 "
97,498
26,812

1,700

ANNUAL REPORT OF BOARD OF GOVERNORS

NO. 15.-MEMBER BANK RESERVE BALANCES, RESERVE BANK CREDIT, AND RELATED I T E M S END OF YEAR 1918-1939 AND END OF MONTH 1940
Reserve

sits with
•ve Banks
ury de
leral Re

•a

1918.
1919
1920.
1921

1,766
2,215
2,687
1,144

287
574
260
145

239
300
287
234

206
203
120
40

2,498
3,292
3,355
1,563

2,873
2,707
2,639
3,373

1,795
1,707
1,709
1,842

4,951
5,091
5,325
4,403

288
385
218
214

51
31
57
96

121
101
23
27

118
208
298
285

1,
1,
1,
1,

636
890
781
753

1922
1923.
1924.
1925.

618
723
320
643

272
355
387
374

436
134
540
375

79
27
54
67

1,405
1,238
L.302
,459

3,642
3,957
4,212
4,112

1,958
2,009
2,025
1,977

4,530
4,757
4,760
4,817

225
213
211
203

11
38
51
16

29
23
39
29

276
275
258
272

1,
1,
2,
2,

934
898
220
212

14
59
-44

1926.
1927
1928.
1929.

637
582
1,056
632

381
392
489
392

315
617
228
511

49
64
35
48

L.381
,655
,809
,583

4,205
4,092
3,854
3,997

1,991
2,006
2,012
2,022

4,808
4,716
4,686
4,578

201
208
202
216

17
18
23
29

65
26
27
30

293
301
348
393

2,
2
2,
2,

194
487
389

355

-56
63
-41
-73

1930.
1931.
1932
1933.

251
638
235
98

364
339
33
133

729
817
1,855
2,437

29
59
22
20

,373
1,853
2,145
2,688

4,306
4,173
4,226
4,036

2,027
2,035
2,204
2,303

4,603
5,360
5,388
5,519

211
222
272
284

19
54
8
3

28
110
43
132

375

2,
1,
2
2,

471
961
509
729

96
-33
576
859

1934
1935.
1936.
1937.
1938.

6
5
3
1
1

2,430
2,431
2,430
2,564
2,564

20
45
64
38
33

2,463
2,486
2,500
2,612
2,601

8,238
10,125
11,258
12,760
14,512

2,511
2,476
2,532
2,637
2,798

5,536
5,882
6,543
6,550
6,856

3 ,029
2 ,566
2 ,376
3 ,619
2 ,706

121
544
244
142
923

189
255
259
407
441

241
253
261
263
260

4 096 1,814

5
3
10
4

1939.

2,484

102

2,593 17,644 2,963 7,598 2 ,409

634

653

251

11, 653 5,209

1940—Jan..
Feb...
Mar..
Apr...
May..
June..
July..
Aug...
Sept..
Oct...
Nov..
Dec...

7
7
4
3
3
2
4
4
5
4
4
3

2,477
2,477
2,475
2,467
2,477
2,466
2,448
2,436
2,434
2,333
2,199
2,184

18
62
50
48
39
63
32
76
46
76
101
87

2,503
2,547
2,529
2,518
2,519
2,531
2,484
2,515
2,485
2,412
2,304
2,274

2,970
2,981
2,990
2,999
3,008
3,013
3,024
3,036
3,044
3,059
3,072
3,087

549
562
702
446
365
234
694
810
756
349
250
368

723
740
691
787
973
1 ,198
1 ,382
1 ,516
1 ,581
1 ,661
1 ,726
1 ,732

248
247
255
256
253
261
262
261
269
271
277
284

12,
12,
12,
12,
13,
13,
13,
13
13
14
14
14

17,931
18,177
18,433
18,770
19,209
19,963
20,463
20,913
21,244
21,506
21,801
21,995

7,376
7,455
7,511
7,559
7,710
7,848
7,883
8,059
8,151
8,300
8,522
8,732

2 ,359
2 ,372
2 ,371
2 ,320
2 ,198
2 ,186
2 ,250
2 ,277
2 ,290
2 ,188
2 ,187
2 ,213

I
o

354
355
360

Total

Mone

ury cas

Gold

•§

Total

Member
bank reserve
balances

U.S. Goveri
meiat secur
ties

. ^

Bills

Bills dliscount

E n d of
year
or month

ation

Reserve Bank credit outstanding

ncy out-

[In millions of dollars]

5, 587
6, 606
7, 027
8, 724

150
328
423
919
237
781
498
541
727
208
215
026

51
68
99

2,844
1,984
1,212
3,205

5,559
5,692
5,828
6,149
6,385
6,857
6,514
6,525
6,655
6,960
6,849
6,615

1
Includes Government overdrafts in 1918, 1919, and 1920; includes industrial advances outstanding since
July 1934.
2
B y proclamation of the President, dated January 31, 1934, the weight of the gold dollar was reduced from
25 8/10 grains to 15 5/21 grains, nine-tenths fine. Between J a n u a r y 31, 1934, and February 1, 1934, the gold
stock increased $2,985,000,000, of which $2,806,000,000 was the increment resulting from t h e reduction in t h e
weight of the gold dollar and the remainder was gold which had been purchased b y t h e Treasury previously
b u t not added to the gold stock. T h e increment was covered into the Treasury as a miscellaneous receipt, a n d
appeared together with the new gold as a General F u n d asset. These transactions were also reflected in an
increase in the item "Treasury cash." T h e increment arising from United States gold coin t u r n e d in b y t h e
public after January 31,1934, was also added to both gold stock and Treasury cash at t h e time of receipt. T h e
increment from this source amounted to about $7,000,000, from February 1 to December 31, 1934, to about
$1,000,000 in 1935, to $1,800,000 in 1936, to $1,200,000 in 1937, to $500,000 in 1938, to $350,000 in 1939, and to $450,000
in 1940.
3
Comprises outstanding United States notes, national bank notes, silver bullion, Treasury notes of 1890,
standard silver dollars, subsidiary silver and minor coin, and the Federal Reserve Bank notes for t h e retirem e n t of which lawful money has been deposited with the Treasurer of the United States, including the currency of these kinds t h a t is held in the Treasury and the Federal Reserve Banks as well as t h a t in circulation.
4
Cash (including gold bullion) held in the Treasury excepting (a) gold and silver held against gold a n d silver
certificates and (6) amounts held for the Federal Reserve Banks.
5
Item includes all deposits in Federal Reserve Banks except Government deposits a n d member b a n k
reserve balances.
6
This item is derived from the condition statement of the Federal Reserve Banks b y adding capital,
surplus, other capital accounts, and "other liabilities, including accrued dividends," a n d subtracting t h e sum
of bank premises and "other assets."
7
Represents excess of total reserve balances over reserves required to be held b y member banks against
their deposits. Figures not available prior to 1929 except on call dates, and since April 1933 are for licensed
member banks only. For required reserves and changes in the percentages of requirements see table 11.

FEDERAL RESERVE SYSTEM

NO. 16.-NUMBER OF BANKS AND BRANCHES IN UNITED STATES, 1933-1940
Member banks
of year figures
National

State

Nonmember banks
Other than mutual savings and
private banks

Branches

Mutual
2
savings Private

Total

Non- 1
Insured 1 insured
Number of banking
offices
1933
1934
1935
1936
1£37
1938
1939
1940
Number of banks
(Head offices)
1933
1934
1935
1937.
1939
1940

6,275
6,705
6,715
6,723
6,745
6,723
6,705
6,683

1,817
1,961
1,953
2,032
2,075
2,106
2,177
2,344

9,041
39,579
1,088
8,556
1,043
8,436
997
8,340
958
8,224
931
8,0"
7,8

704
705

5,154
5,462
5,386
5,325
5,260
5,224
5,187
5,144

857
980
1,001
1,051
1,081
1,114
1,175
1,342

8,341
7,728
7,588
7,449
7,316
7,171
6,951

1,108
1,046
1,004
960
917
887
851

579
579
570
565
563
555
551
551

1,121
1,243
1,329
1,398
1,485
1,499
1,518
1,539

960
981
952
981
994
992
1,002
1,002

42
39
37
41
44
44

125
126
128
128
128
135
132
135

683

103
246
143
139
79
73
69
5
62

17,940
19,196
19,153
19,066
18,927
18,774
18,663
18,561

241
138
134
74
68
63

15,029
16,063
15,869
15,667
15,387
15,194
15,034
14,895

In
Outside
headheader ffice office
cities
cities

Number of
branches
1933
1934
1935
1936
1927
1938
1939
1940
1
2

700
778
891
S08
927
940

2,911
3,133
3,284
3,399
3,540
3,580
3,629
3,666

1,784
1,776
1,754
1,749
1,757
1,743
1,738
1,716

1,127
1,357
1,530
1,650
1,783
1,837
1,891
1,950

Federal deposit insurance did not become operative until January 1, 1934.
The figures for December 1934 include 140 private banks which reported to the Comptroller of the
Currency under the provisions of Section 21 (a) of the Banking Act of 1933. Under the provisions of the
Banking Act of 1935, private banks no longer report to the Comptroller of the Currency and, accordingly,
only such private banks as report to State banking departments are in the figures shown for subsequent
years.
3
Separate figures not available for branches of insured and noninsured banks.
* Comprises 53 insured banks with 31 branches and 498 noninsured banks with 104 branches. The figures
beginning with 1939 exclude one bank with 4 branches which theretofore was classified as an insured mutual
savings
bank but is now included with "Nonmember banks other than mutual savings and private banks."
5
Comprises 1 insured bank with no branches and 55 noninsured banks with 6 branches.

ANNUAL REPORT OF BOARD OF GOVERNORS
NO. 17.-ANALYSIS OF CHANGES IN NUMBER OF BANKS AND BRANCHES DURING 1940
Nonmember banks

Member banks

Total

National

Other than
mutual savings
and private
Mutual
banks
State
savings Private
NonInsured insured

1,175

Analysis of Bank Changes
Number of banks on December 31, 1939

15,034

5,187

Increases in number of banks:
Primary organizations (new banks) 1
Reopenings of suspended banks

+32
+2

Decreases in number of banks:
Suspensions
Voluntary liquidations 2
Consolidations, absorptions, etc
Unclassified

-22
-53
-96
-2

-1
-4
-41

Inter-class bank changes:
Conversions—
National into State
State into National
Private into State
Federal Reserve membership— 8
Admissions of State banks
Withdrawals of State banks
Federal deposit insurance—4
Admissions of State banks
Withdrawals of State banks
Net increase or decrease in number of
banks . . . .
. .
....
Number of banks on December 31, 1940

-16
+16

7,171

887

+24
5+2

-18
-28
-39

-3
-16
-5
—2

±1

+14
-8

... _
-11

+188
-3

-182

551

• * _4- • •

-3

-6

+3
+12

-12

-139

-43

+167

-220

-36

14,895

5,144

1,342

6,951

851

551

132

-7

Analysis of Branch Changes
Number of branches on December 31, 1939

3,629

1,518

1,002

927

Increases in number of branches:
De novo branches
Banks converted into branches

+46
+43

+13
+21

+2
+9

+28
+12

Decreases in number of branches:
Branches discontinued
Unclassified

-51
1

-23

-11

-17

Inter-class branch changes:
From State to National
From nonmember to State member
From uninsured to insured nonmember...
Net increase or decrease in number of
branches...
Number of branches on December 31, 1940
1
2
8

+10

+37

+21

3,666

1,539

-7

-3
-8

+3
• • • • « • •

-1

135

+13
1,002

940

Exclusive of new banks organized to succeed operating banks.
Exclusive of liquidations incident to the succession, conversion and absorption of banks.
Exclusive of conversions of national banks into State bank members, or vice versa, as such conversions
do 4not affect Federal Reserve membership.
Exclusive of conversions of member banks into insured nonmember banks, or vice versa, as*such conversions
do not affect Federal Deposit Insurance Corporation membership.
5
Includes one bank which was not insured at time of suspension.

FEDERAL RESERVE SYSTEM
NO. 18.-NUMBER OF BANKS ON PAR LIST AND NOT ON PAR LIST,' BY FEDERAL
RESERVE DISTRICTS AND STATES, ON DECEMBER 31, 1939 AND 1940

Federal Reserve
district or State

Nonmember banks, other t h a n
mutual savings banks

Member banks

Not on par list

On par list
DISTRICT

Dec. 31,
193S
353
768
652
639
410

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

804
392
467
736
544
282

1,392
661
120
919
246
235

6,486

6,362

5,146

5,395

42
53
41
154
14
58

43
53
42
154
14
58

27
12
32
42
9
59

27
12
33
42
9
61

557
280
773

563
277
775

170
74
298

363
184
419
220
137

344
148
4G4
213
134

330
315
394
237
272

357
355
417
249
280

3 " ''
28
1
160

3
27
1
158

209
148
150
45
63
147
206

209
143
142
50
64
148
203

50
397
363
5
6
108
457

58
405
378
4
8
114
471

415
113
106
113
95
162
1

411
110
106
117
93
161
1

19
73
15
176
98
54
26
69
57'

19
73
14
162
96
51
25
70
56

23
101
7
99
76
18
4
17
15

24
103
8
109
79
18
5
17
16

39 " "
6
125
119
256
88

'43
6
126
120
260
87

112
77

112
77
82
26

280
51
4
4

282
52
5
4

10
169
131
177

12
171
130
175

57
37
219
525

56
36
220
501

46
4
159
232

49
5
161
256

133
104
12
98

132
104
12
102

67
27
35
93
27
7
33
8

68
28
35
91
27
7
33
7

24
23
22
52
14
5
27
3

23
23
21
53
14
5
26
4

1
1

2
1

57
32
115

60
34
115

51
36
92

53
36
94

26
3

25
3

JilL.

856
415
460
739
568
277

Total

Dec. 31,
1940
165
243
236
558
289

Dec. 31,
1939
167
257
r
248
590
306
86
1,458
695
133
946
270
239

Dec. 31,
1940
350
765
651
658
431

^M-

Dec. 31,
1940

2,715

Dec. 31,
1939

2" "
289

J595

^21
443
706
176
154
29

2" "
295
698
217
442
703
176
158
28
2,719

STATE

New England:
Maine
New Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut
Middle Atlantic:
New York
New Jersey
Pennsylvania
East North Central:
Ohio
Indiana
Illinois
Michigan
Wisconsin
West North Central:
Minnesota
Iowa
Missouri
North Dakota
South Dakota
Nebraska
Kansas
South Atlantic:
Delaware
Maryland
District of Columbia
Virginia
West Virginia
North Carolina
South Carolina
Georgia
Florida
East South Central:
Kentucky
Tennessee
Alabama
Mississippi
West South Central:
Arkansas
Louisiana .
Oklahoma
Texas
Mountain:
Montana
Idaho
Wyoming.
Colorado
New Mexico
Arizona...
Utah
Nevada
PacificWashington
Oregon
California

178
84
308
"

r
1
Revised.
Includes all member banks, and all nonmember banks on which checks are drawn (except
mutual savings banks, on a few of which some checks are drawn). Banks "not on par list" comprise nonmember banks which have not agreed to pay without deduction such checks drawn upon them as may be

forwarded
for payment through the Federal Reserve Banks. Checks on such banks are not collectible through
the Federal Reserve Banks. The difference of 3 between the number of nonmember banks on December
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ANNUAL REPORT OF BOARD OF GOVERNORS
NO. 19.-MONEY RATES, BOND YIELDS, AND STOCK PRICES*
Open-markot rates in
New York City*
(per cent per annum)

Year and Month

Prime
U.S.
com- U.S.
mercial Treas- Treaspaper,
ury
ury
4-6
notes
bills
months

Number of issues..
5.56
7.54
6.56
4.48
5.01
3.88
4.03
4.34
4.11

Bond Yields^
(per cent per annum)

U.S.
Treasury

Common stock prices4
(1926 = 100)

Corporate
Total
Aaa

Industrial

Railroad

Public
utility

Baa

2-6

420

348

5.49
6.12
5.97
5.10
5.12
5.00
4.88
4.73
4.57
4.55
4.73
4.55
4.58
5.01
4.49
4.00
3.60
3.24
3.26
3.19
3.01
2.84

7.25
8.20
8.35
7.08
7.24
6.83
6.27
5.87
5.48
5.48
5.90
5.90
7.62
9.30
7.76
6.32
5.75
4.77
5.03
5.80
4.96
4.75

70.7
64.2
55.2
67.7
69.0
72.8
89.7
100.0
118.3
149.9
190.3
149.8
94.7
48.6
63.0
72.4
78.3
111.0
111.8
83.3
89.2
83.6

72.6
66.1
51.6
64.7

60.3
54.5
57.8

88.4
100.0
118.5
154.3
189.4
140.6
87.4
46.5
65.7
81.1
90.8
127.3
131.3
99.4
104.9
97.4

70.1
63.9
61.8
72.7
71.9
76.7
89.5
100.0
119.1
128.5
147.3
124.9
72.5
26.4
37.7
41.5
34.0
51.2
49.3
26.1
28.2
26.9

73.8
78.9
94.9
100.0
116.0
148.9
234.6
214.6
148.7
79.1
78.1
68.9
71.4
104.3
94.8
73.2
84.5
82.1

5.85
3.59
2.63
2.73
1.72
1.02
.76
.75
.95
.81
.59
.56

1.402
0.879
0.515
0.256
0.137
0.143
0.447
0.053
r
0.023
0.014

2.66
2.12
1.29
1.11
1.40
0.83
0.59
0.50

4.73
5.32
5.09
4.30
4.36
4.06
3.86
3.68
3.34
3.33
3.60
3.29
3.34
3.68
3.31
3.12
2.79
2.65
2.68
2.56
2.36
2.21

1939
January
February
March
April
May
June
July
August
September
October
November
December

.56
.56
.56
.56
.56
.56
.56
.56
.69
.69
.63
.56

0.002
0.004
0.005
0.019
0.006
0.006
0.017
r
0.058
r
0.101
0.028
0.018
r
0.010

0.65
0.63
0.51
0.50
0.42
0.39
0.45
0.48
1.07
0.77
0.64
0.51

2.47
2.44
2.34
2.30
2.17
2.13
2.16
2.21
2.65
2.60
2.46
2.35

3.01
3.00
2.99
3.02
2.97
2.92
2.89
2.93
3.25
3.15
3.00
2.94

5.12
5.05
4.89
5.15
5.07
4.91
4.84
4.85
5.00
4.88
4.85
4.92

91.8
90.1
91.7
81.9
83.1
86.0
86.1
86.3
92.4
95.3
94.2
91.8

109.3
106.3
108.0
95.9
97.0
100.5
100.6
100.5
109.4
112.7
110.9
107.9

29.8
28.0
29.7
24.8
25.0
25.9
25.7
25.4
29.7
32.9
31.6
29.6

81.2
83.8
85.8
80.0
82.4
84.7
84.9
87.0
84.3
86.0
87.3
86.7

1940
January
February
March
April
May
June
July
August
September
October
November
December

.56
.56
.56
.56
.56
.56
.56
.56
.56
.56
.56
.56

0.004
(5)
0.003
0.042
0.071
0.009
0.019
0.021
(5)
0.003

0.47
0.46
0.42
0.45
0.65
0.76
0.57
0.58
0.48
0.43
0.34
0.35

2.30
2.32
2.25
2.25
2.38
2.39
2.28
2.25
2.18
2.10
1.97
1.89

2.88
2.86
2.84
2.82
2.93
2.96
2.88
2.85
2.82
2.79
2.75
2.71

4.86
4.83
4.80
4.74
4.94
5.11
4.80
4.76
4.66
4.56
4.48
4.45

92.7
91.5
91.5
92.9
83.0
73.3
76.1
77.5
80.9
81.4
82.1
80.4

108.8
107.3
107.5
109.2
97.3
84.8
87.2
89.1
93.7
94.6
95.8
94.0

29.6
28.7
28.9
29.1
25.4
22.7
24.4
24.9
27.0
27.4
27.8
26.4

88.4
87.6
87.1
87.8
80.6
75.1
80.1
80.3
81.0
80.2
79.0
77.6

1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1632
1933
1934
1935
1936
1937
1939
1940

r
1
2

70.9

Revised.
Annual data are averages of monthly figures.
For commercial paper, monthly data are prevailing rates; for Treasury bills, the average rates on new
issues within period; and for Treasury notes the averages of daily figures for 3- to 5-year issues. Treasury bill
series comprises 90-day bills to February 16, 1934; 182-day bills from February 23, 1934 to February 23, 1935;
273-day bills from March 1, 1935 to October 15, 1937; bills maturing about March 16, 1938, from October 22
to December 10, 1937; and 91-day bills thereafter.
3 Monthly data are averages of daily figures. U. S. Treasury bond yields are averages of all outstanding
bonds due or callable in more than eight years from 1919 to 1925 and in more than twelve years beginning
in 1926. Corporate average yields are as published by Moody's Investors Service; until 1928 each rating
group included 15 bonds; since the early part of 1934 there have been less than 30 bonds in the Aaa group
owing
to the limited number of suitable issues in the industrial and railroad groups.
4
Standard Statistics Co. Monthly data are averages of Wednesday figures.
5
Negative rate.

FEDERAL RESERVE SYSTEM

NO. 20.—BUSINESS INDEXES*
payments
100)

dity prices*

actory payro
(value) (192c

reight-car loi
(number) (1!

holesale com
(1926 = 100)

ational inco
(value) (1921

96.8 84.7
96.8 87.1
96.7 88.8
96.6 86.8
96.3 86.3
97.3 87.9
98.4 85.8
99.0 91.2
100.8 95.4
104.8 103.2
107.0 103.2
108.2 105.4

98
95
94
87
90
97
99
101
111
114
114
110

88
88
88
88

92
93
95

76.9
76.9
76.7
76.2
76.2
75.6
75.4
75.0
79.1
79.4
79.2
79.2

83.4
83 7
84.6
83.1
83.8
84.1
83.6
85.2
86.1
88.0
88.5
90.0

53
56
57
62
64
69

93
68
66
66
65

91
98
101
103
130
136

104.9
104.2
104.0
103.3
103.8
104.2
104.7
105.6
106.1
107.3
108.8
110.6

107.6
105.8
104.0
102.8
102.8
103.9
105 1
107.4
108.9
111.4
114.2
116.6

111
105
100
103
106
111
110
112
112
110
116
119

92
90
89
89
89
91
92
98
97
94
100
101

79.4
78.7
78.4
78.6
78.4
77.5
77.7
77.4
78.0
78.7
79.6
80.0

90.3
89.7
88.4
88.2
88.6
88.7
89.3
90.5
91.7
92.5
93.6
95.8

44
30
44
68
81
95
124
121
117
126
87
50
37
13
11
12
21
37
41
45
60
72

79
90
65
88
86
94
120
135
139
142
142
125
84
40
37
48
50
70
74
80
81
89

102
101
101
97
97
102
104
104
113
121
124
126

98
98
96
93
90
97
101
106
115
129
133
140

104
104
104
103
104
106
106
108
111
115
117
117

103
102
103
92
96
105
107
92
114
119
120
115

86
73
69
67
63
63
67
73

55
58
55
58
55
58
62
67
68
68
61
60

122
116
113
111
115
121
121
121
125
129
133
139

135
124
118
113
119
131
132
135
146
150
154
165

113
110
107
107
110
114
112
112
112
116

118
114
117
119
117
118
120
113
116
113
118
119

75
63
62
64
64
74
85
90
93
95
111
115

120
124

s sales
i = 100)

actory
(1923-25 = 1(

100.5
100 7
100.8
99.8
100.6
101.7
102.0
102.4
103.0
104.2
104.9
105.4

75
58
73
88
82
91
96
95
99
110
91
75
58
69
75
87
103
113
88
108
122

63
63
56
79
84
94
122
129
129
135
117
92
63
28
25
32
37
55
59
64
72
81

82
82
85
87
90

epartment s1
(value) (192c

onagricultur
(1935-39 = 1

111
85
80
74
68
67
71
78
76
82
101
107

il other

October
November
December

ioo'6"
90.8

esidential

1940
January
February
March
April
May
June
July
August
September

107^6
100.9
92.3
82.8
83.3
90.5
94.2
100.0
105.0
98.5
102.3
105.6

138.6
154.4
97.6
96.7
100.6
98.1
103.5
100.0
95.4
96.7
95.3
86.4
73.0
64.8
65.9
74.9
80.0
80.8
86.3
78.6
77.1
78.6

71
83
66
71
98
89
92
99
100
99
107
93
80
66
76
80
86
99
112
97
106
117

76
83
86

ID n

78
94
87
88
98
99
103
106
107
108
111
102
92
69
67
75
79
88
92
85
90
94

62
60
57
67
72
69
76
79
83
85
93
84
79
70
79
81
90
100
106
95
108
113

'Oco

120
129
110
121
142
139
146
152
147
148
152
131
105
78
82
89
92
107
111
89
101
109

inerals

1939
January
February
March
April
May
June
July
August
September
October
November
December

. .

go*

98.0
117.2
75.6
81.2
102.9
96.0
101.1
104.2
102.4
103.5
110.4
89.4
67.8
46.7
50.1
64.5
74.1
85.8
102.5
78.5
92.2
105.4

84
93
53
81
104
95
108
114
107
117
133
99
68
41
54
66
84
108
122
78
108
135

106.7
107.1
82.0
90.7
103.8
96.4
99.8
101.7
99.5
99.7
106.0
92.4
78.1
66.3
73 4
85.7
91.3
99.0
108.6
90.9
99.9
107.5

Employment
(number)

•as

•a
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940

Construction contracts awarded
(value) 2
1923-25 = 100

ondurable
manufacture

Year and
month

urable
manufacture

Industrial iDroduction
(physical volume)
(1935-39 = 100)

i = 100)

[Adjusted for seasemal variation

99.8
99.3
99.8
97.9
97.8
99.5
98.2
105.5
111.6
116.2
116.4
122.4

87
86
87
88
90

77.3
60.1
57.1
65.8
71.7
82.7
87.5
80.7
85.4
90.5

*1 Without seasonal adjustment.
Indexes compiled by the Board of Governors of the Federal Reserve System, except for indexes of wholesale commodity prices and factory payrolls, compiled by the United States Bureau of Labor Statistics, and
the index of income payments, compiled by the "United States Department of Commerce. Descriptions and
back2 figures for the Board's indexes may be obtained from the Division of Research and Statistics.
Three-month moving average, centered at second month, based on F. W. Dodge Corporation data for
37 Eastern States.

APPENDIX

RECORD OF POLICY ACTIONS-BOARD OF GOVERNORS
MEETING ON JANUARY 2, 1940

Members present: Mr. Eccles, Chairman; Mr. Ransom, Vice Chairman;
Mr. McKee, Mr. Davis, Mr. Draper.
Amendment to Regulation L, Interlocking Bank Directorates under the Clayton Act.
By unanimous vote, section 3 of Regulation L, Interlocking Bank Directorates under the Clayton Act, was
amended, effective immediately, so as to permit any director,
officer or employee of a member bank of the Federal Reserve
System which does not exercise trust powers to serve a trust
company which does not receive deposits, or any director,
officer or employee of a trust company which is a member of
the Federal Reserve System and which does not receive deposits to serve a bank, banking association or savings bank,
which does not exercise trust powers.
In section 8 of the Clayton Act Congress made a number of exceptions
to the prohibition against interlocking bank directorates and authorized
the Board to make additional exceptions, by regulation. The Board has
exercised this authority only to fill out the pattern established by Congress
in the statute. Mutual savings banks are specifically exempted from the
prohibition of the statute and in the opinion of the Board there are less
potentialities of competition between banks which do not exercise trust
powers and trust companies which do not receive deposits than between
member banks with savings deposits and mutual savings banks. Moreover, the statute does not prohibit interlocking relationships between
member banks and life insurance companies, finance companies, building
and loan associations, and several other types of institutions which compete
with member banks for numerous kinds of loans to a much greater extent
than do trust companies which receive no deposits. The Board felt that
the two classes of institutions described in the amendment are clearly of
distinct types, operating in different fields.
MEETING ON FEBRUARY 1, 1940

Members present: Mr. Eccles, Chairman; Mr. Ransom, Vice Chairman;
Mr. Szymczak, Mr. Davis, Mr. Draper.
Amendment to Regulation L, Interlocking Bank Directorates Under the Clayton Act.

On August 1, 1939, the Board of Governors extended the authority contained in subsections 3 (a) and 3(e) of Regulation L, Interlocking Bank
Directorates Under the Clayton Act, to permit (1) any private banker or
any director, officer, or employee of a member bank of the Federal Reserve System who was lawfully serving as a director, officer, or employee
of a Morris Plan bank or similar institution on January 31, 1939, to continue to serve until February 1, 1940, and (2) any director, officer, or
employee of any member bank of the Federal Reserve System who, on
August 23, 1935 (date of approval of the Banking Act of 1935), was lawfully serving at the same time as a private banker or as a director, officer,
or employee of any other bank, and whose services in such capacities had
been continuous since such date, to continue until February 1, 1940, to
serve such member bank and not more than one other bank.
60

FEDERAL RESERVE SYSTEM

At this meeting, by unanimous vote, subsections 3 (a) and
3(e) of Regulation L were further amended, effective immediately, to authorize the continuation of such relationships until
June 1, 1940.
The reasons for the Board's action were set forth in the following press
statement:
"The Board of Governors of the Federal Reserve System has
amended subsections 3 (a) and 3(e) of its Regulation L relating to
interlocking bank directorates under the Clayton Act, effective immediately, so as to extend until June 1, 1940, the time during which
certain persons who have been serving member banks may continue
to serve a member bank and not more than one other bank.
"This final extension was made at the request of Senator Wagner,
Chairman of the Banking and Currency Committee of the Senate,
and of Senator Glass, senior member of that Committee, and upon
receipt of the following letter from the President addressed to the
Chairman of the Board:
" 'In view of my veto last year of the Bill extending the
time for ending interlocking bank directorships and in view of
the apparent hope on the part of some of these directors that
some method could be devised for a slight extension of the
final date, I am writing to you and the Board to tell you that
I have no objection to a short extension—say three months
but no longer than four months. This will give ample time
to make the necessary arrangements. As I said in my veto
message, I honestly believe that the intent of the law should
be definitely put into effect especially because so much time
has already elapsed.' "
MEETING ON MAY 3, 1940

Members present: Mr. Ransom, Vice Chairman; Mr. Szymczak, Mr.
McKee, Mr. Draper.
Amendment to Regulation F, Trust Powers of National Banks.
By unanimous vote, Regulation F, Trust Powers of National Banks, was amended to permit the operation of common trust funds composed principally of mortgages.
In connection with this action, the Board issued a statement to the
press under date of May 6, in which the reasons for the action were set
forth as follows:
"The Board, effective June 1, 1940, has approved amendments to
its Regulation F, relating to the administration of trusts by national
banks, to permit the operation of Common Trust Funds which are
invested principally in mortgages. The Board for some time has had
under consideration a proposal by representatives of member banks
for such amendments to its regulation and the proposal was approved
by representatives of banking associations. It was represented to
the Board that smaller trust institutions may not have facilities for
operating Common Trust Funds composed principally of securities,
the operation of which is now permitted by the Board's Regulation F,
but would have facilities for operating Common Trust Funds composed principally of mortgages. Under the amendments to Regulation F Common Trust Funds composed principally of mortgages may
be operated only in States in which there is statutory authority for

ANNUAL REPORT OF BOARD OF GOVERNORS

such operation, and these amendments will permit funds operated
under such statutes to obtain certain tax exemptions which are
granted by the Federal revenue laws to Common Trust Funds operated in accordance with the Board's regulations."
MEETING ON OCTOBER 17, 1940

Members present: Mr. Eccles, Chairman; Mr. McKee, Mr. Davis,
Mr. Draper.
Changes in Rates on Industrial Loans under section 13b of the Federal Reserve Act.
Unanimous approval was given to a telegram to all Federal
Reserve Banks stating that the Board was prepared to approve for the Banks schedules of rates on advances under
section 13b of the Federal Reserve Act which would enable
a Federal Reserve Bank to charge the same rate on its participation in an industrial loan as the rate charged by the financing institution on the portion of the loan for which it was
obligated.
At the request of the Board of Governors the Presidents of the Federal
Reserve Banks, at a conference in Washington on September 28, 1940,
gave consideration to whether the existing schedules of rates charged by
the Federal Reserve Banks on industrial advances were justified in the
light of existing conditions and whether the rates at all Federal Reserve
Banks should be uniform. It was the consensus of the Presidents that in
view of the different conditions existing in the various Federal Reserve
districts there was no necessity for uniformity of rates, that the variety
of problems arising in connection with financing the defense program made
it desirable to have a spread in rates, and that in general the rate charged
by a Federal Reserve Bank on its participation in a loan made with a
financing institution should be the rate agreed upon by the financing institution and the borrower. The Board of Governors was in agreement
with the policy suggested by the Presidents and the telegram to the
Federal Reserve Banks was for the purpose of advising the Banks
accordingly.
Changes in industrial loan rates approved by the Board during the
latter part of 1940 for the Federal Reserve Banks of New York, Philadelphia, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas
City, Dallas, and San Francisco were in accordance with this policy.
MEETING ON DECEMBER 23, 1940

Members present: Mr. Eccles, Chairman; Mr. Ransom, Vice Chairman;
Mr. Szymczak, Mr. McKee, Mr. Davis, Mr. Draper.
Condition of Membership Prohibiting a Bank from Acting as Agent in the Rental or
Sale of Real Estate.
It was unanimously voted that in the future a condition of
membership requiring a bank to discontinue acting as agent
in the rental or sale of real estate would not be generally prescribed in connection with admission of State banks to membership in the Federal Reserve System, but that in any case
where the information available reflected abuses or unsound
practices the matter would be handled by condition of membership or otherwise in the same manner as if the unsound

FEDERAL RESERVE SYSTEM

practices were disclosed in the operations of any other department of the bank.
For a number of years it had been the policy of the Board to prescribe
such a condition in connection with the admission to membership of banks
which were engaged as a business in the handling of real estate as rental
or sales agent. The question was presented to the Board for reconsideration at this time in connection with the membership application of a State
bank which did a substantial amount of business as agent in the sale and
rental of real estate. The bank was in good condition and under capable
management which was well qualified by experience to handle real estate
transactions and it appeared that the real estate activities of the bank had
not had, and were not likely in the future to have, any adverse effects on
the bank. The Board felt that in a situation of this kind there was no
longer any necessity, from the standpoint of effective supervision of State
member banks, to take the position that it would admit a bank to membership only on condition that it discontinue its real estate agency operations, it being understood that the condition could be prescribed in any
case where circumstances might require.
RECORD OF POLICY ACTIONS-FEDERAL OPEN MARKET COMMITTEE
MEETING ON MARCH 20, 1940

Members present: Mr. Eccles, Chairman; Mr. Harrison, Vice Chairman; Mr. Szymczak, Mr. McKee, Mr. Ransom, Mr. Davis, Mr. Draper,
Mr. Sinclair, Mr. Parker, Mr. Schaller, Mr. Day.
Upon motion duly made and seconded, the following resolution was adopted by unanimous vote:
"That the executive committee be directed until otherwise directed
by the Federal Open Market Committee to arrange for such transactions for the System open market account (including purchases,
sales, exchanges, replacement of maturing securities, and letting maturities run off without replacement) as in its judgment from time to
time may be necessary for the purpose of exercising an influence
toward maintaining orderly market conditions; provided that the
aggregate amount of securities held in the account at the close of this
date shall not be increased nor decreased by more than $500,000,000."
This resolution was in the same form as the resolution adopted at the
two preceding meetings of the Federal Open Market Committee. As on
the two previous occasions, the action was taken in the light of continued
unsettled conditions in our markets resulting from the war in Europe and
the unanimous opinion of the members of the Committee that because of
these conditions the executive committee should continue to have flexible
authority to execute transactions in the System open market account for
the purpose of exercising an influence toward maintaining orderly market
conditions.
MEETING ON MAY 28, 1940

Members present: Mr. Eccles, Chairman; Mr. Harrison, Vice Chairman; Mr. Szymczak, Mr. McKee, Mr. Ransom, Mr. Davis, Mr. Draper,
Mr. Sinclair, Mr. Schaller, Mr. Day, Mr. Leach (alternate for Mr. Parker).
Upon motion duly made and seconded, the following resolution, which was in the same form as the resolution adopted at
the meeting of the Federal Open Market Committee on
March 20, 1940, was adopted by unanimous vote:
"That the executive committee be directed until otherwise directed
by the Federal Open Market Committee to arrange for such trans

ANNUAL REPORT OF BOARD OF GOVERNORS

actions for the System open market account (including purchases,
sales, exchanges, replacement of maturing securities, and letting maturities run off without replacement) as in its judgment from time to
time may be necessary for the purpose of exercising an influence
toward maintaining orderly market conditions; provided that the
aggregate amount of securities held in the account at the close of this
date shall not be increased nor decreased by more than $500,000,000."
The action of the Committee renewed the authority granted to the
executive committee at the meeting of the Federal Open Market Committee on March 20, 1940, and was taken for substantially the same
reasons, with the understanding that the executive committee would have
authority under the resolution to direct the sale of securities, within the
limits fixed by the full Committee, not only for the purpose of exercising
an influence toward orderly conditions in the market but also for the
purpose of disposing of securities, which had been acquired in a period of
market weakness, whenever there was a strong buying market and there
were not sufficient offerings from other sources to meet demands.
The reason for this was that experience had indicated that the System
ordinarily would be called upon to buy more securities during a period of
market weakness than it would have occasion to sell during a period of
rising prices for the purpose of exercising an influence of a stabilizing
character, and, therefore, the Committee believed that securities which
had been acquired during a period of market weakness should be sold
whenever that could be done without adverse effects on the market.
V

MEETING ON SEPTEMBER 27, 1940

Members present: Mr. Harrison, Vice Chairman; Mr. Szymczak, Mr.
McKee, Mr. Ransom, Mr. Davis, Mr. Draper, Mr. Sinclair, Mr. Parker,
Mr. Schaller, Mr. Day.
Upon motion duly made and seconded, the following resolution was adopted, Messrs. Harrison, Szymczak, McKee,
Ransom, Davis, Sinclair, Parker, Schaller and Day voting
"aye," and Mr. Draper voting "no":
"That the executive committee be directed until otherwise directed
by the Federal Open Market Committee to arrange for such transactions for the System open market account (including purchases,
sales, exchanges, replacement of maturing securities, and letting maturities run off without replacement) as in its judgment from time to
time may be advisable in the light of existing conditions; provided
that the aggregate amount of securities held in the account at the
close of this date shall not be increased nor decreased by more than
$500,000,000."
By this action the Committee changed the form of the existing resolution by substituting the phrase "advisable in the light of existing conditions" for the phrase "necessary for the purpose of exercising an influence
toward maintaining orderly market conditions." This was done for the
purpose of bringing the resolution more closely into conformity with the
existing understanding of the authority conferred upon the executive committee as stated in the record in connection with the action taken on
May 28, 1940. It was the opinion of the full Committee that the resolution should be in such form as to enable the executive committee to continue to direct the execution of transactions in the account not only for
the purpose of exercising an influence toward maintaining orderly market
conditions but also, within the stated limit, for the purpose of selling

FEDERAL RESERVE SYSTEM

securities which had been acquired during a period of market weakness,
whenever such sales could be made without adversely affecting the market.
Mr. Draper voted against the adoption of the resolution for the reason
that the changed instructions to the executive committee might be construed by the public as a change in policy having deflationary implications. He also felt that caution was particularly necessary at this time
not only because of the domestic situation but also because of the dangerous war conditions abroad.
MEETING ON DECEMBER 18, 1940

Member present: Mr. Eccles, Chairman; Mr. Harrison, Vice Chairman;
Mr. Szymczak, Mr. McKee, Mr. Ransom, Mr. Davis, Mr. Draper, Mr.
Sinclair, Mr. Parker, Mr. Schaller, Mr. Day.
Upon motion duly made and seconded, the following resolution was adopted, Messrs. Eccles, Harrison, Szymczak,
McKee, Ransom, Davis, Sinclair, Parker, Schaller, and Day
voting "aye," and Mr. Draper voting "no":
"That the executive committee be directed until otherwise directed
by the Federal Open Market Committee to arrange for such transactions for the System open market account (including purchases,
sales, exchanges, replacement of maturing securities, and letting maturities run off without replacement) as in its judgment from time to
time may be advisable in the light of existing conditions; provided
that the aggregate amount of securities held in the account at the
close of this date shall not be increased or decreased by more than
$200,000,000."
The above resolution was in the same form as that adopted at the
meeting on September 27, 1940, except that it reduced from $500,000,000
to $200,000,000 the amount by which the aggregate amount of securities
held in the System account could be increased or decreased. The reason
for the action was that, because of the many uncertainties in the then
existing situation which could not be appraised satisfactorily, it was believed that the executive committee should continue to be in a position to
act in accordance with its best judgment within the limits of the resolution
and in the light of developments from time to time, especially when it
might be deemed desirable to exercise an influence toward preventing disorderly conditions in the market during the interval before another meeting
of the full Committee, but that, in view of the large reduction in the
portfolio that had been accomplished during the past several months, there
was no need at this time for making further sales for the sole purpose of
reducing the account.
Mr. Draper stated that he voted "no" on the above resolution for the
following reasons which were broader in scope than those outlined by him
when voting in the negative on a similar resolution adopted at the meeting of the Federal Open Market Committee on September 27, 1940:
"I do not believe that in the present circumstances sales from the
portfolio are necessary in order to maintain orderly market conditions.
I have seen no recent evidence of the market being disorderly. In
my judgment, also, sales from the portfolio for the purpose of maintaining an orderly market should be resorted to much less frequently
and less vigorously than purchases at a time when the market is
declining rapidly. Rapid declines are apt to result in a selling wave
amounting to panic, which I believe should be prevented when
possible. On the other hand, there is little danger of a panic when

ANNUAL REPORT OF BOARD OF GOVERNORS

the market advances, and it makes little difference whether a rise is
rapid or slow, so long as the level it reaches is appropriate to existing
conditions and is not the result of purely speculative purchases.
"A still more important reason for my belief that there is no occasion to sell is that our portfolio has been reduced very substantially
and that we shall need all the ammunition we can muster when reserve
requirements will have been increased and the time comes to adopt
a policy of credit restriction in order to prevent inflation."

RECOMMENDATIONS OF THE FEDERAL ADVISORY COUNCIL TO THE BOARD
OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
FEBRUARY 20, 1940

Topic No. 1: Purchases of Foreign Silver.
RECOMMENDATION: The Federal Advisory Council has noted that the
Senate Committee on Banking and Currency is considering at this time
S.785 which would discontinue the purchase of foreign silver by the Secretary of the Treasury. The Council is unanimously of the opinion that
these purchases of foreign silver should be discontinued forthwith, particularly in view of the fact that silver purchases increase the already excessively large bank reserves.
MAY 21, 1940

Topic No. 1: Assignment of claims on the United States.
RECOMMENDATION: The Federal Advisory Council repeats at this time
the recommendation made at its meeting of November 29, 1938, and
reading as follows: "The Federal Advisory Council requests the Board of
Governors of the Federal Reserve System to recommend to the proper
authorities an amendment to that part of section 3477 of the Revised
Statutes of the United States which is Title 31 U.S.C.A., Sec. 203, which
makes null and void all transfers and assignments of any claims on the
United States. The amendment should permit the assignment of claims
where legitimate credit has been extended excepting in those cases where
claims arise in consequence of torts, tax refunds, or the like."
The Council believes this suggested amendment to the law especially
important at this time, since the Government's preparedness program
whenever put into effect will result in the necessity of placing large orders
for materials of all kinds. Many small and medium sized business enterprises would be in a better position to accept and execute Government
orders if they were able to use assignments of their claims against the
Government as collateral for loans.
OCTOBER 8, 1940

Topic No. 1: Financing of war defense program.
RECOMMENDATION: The Federal Advisory Council believes the danger
of inflation would be increased by a material addition to the already large
holdings of Government securities in the commercial banking system.
The Council, therefore, urges the Board of Governors of the Federal Reserve System to use its influence to the end that future issues of Government securities be placed, as far as possible, with individual and corporate
investors, including insurance companies, trusts, and savings institutions,
rather than with banks of deposit; terms and maturities of future issues
should be fixed with a view of encouraging ownership by such investors
and discouraging ownership by banks of deposit.

SPECIAL REPORT TO THE CONGRESS
by the
Board of Governors of the Federal Reserve System, the Presidents of the Federal Reserve Banks, and the
Federal Advisory Council
(Submitted to the President of the Senate and the Speaker of the House of
Representatives, December 31, 1940)

OR the first time since the creation of the Federal Reserve System, the
F
Board of Governors, the Presidents of the twelve Federal Reserve
Banks and the members of the Federal Advisory Council representing the
twelve Federal Reserve Districts present a joint report to the Congress.
This step is taken in order to draw attention to the need of proper
preparedness in our monetary organization at a time when the country
is engaged in a great defense program that requires the coordinated effort
of the entire Nation. Defense is not exclusively a military undertaking,
but involves economic and financial effectiveness as well. The volume of
physical production is now greater than ever before and under the stimulus
of the defense program is certain to rise to still higher levels. Vast expenditures of the military program and their financing create additional
problems in the monetary field which make it necessary to review our
existing monetary machinery and to place ourselves in a position to take
measures, when necessary, to forestall the development of inflationary
tendencies attributable to defects in the machinery of credit control.
These tendencies, if unchecked, would produce a rise of prices, would retard the national effort for defense and greatly increase its cost, and would
aggravate the situation which may result when the needs of defense, now
a stimulus, later absorb less of our economic productivity. While inflation
cannot be controlled by monetary measures alone, the present extraordinary situation demands that adequate means be provided to combat
the dangers of overexpansion of bank credit due to monetary causes.
The volume of demand deposits and currency is fifty per cent greater
than in any other period in our history. Excess reserves are huge and are
increasing. They provide a base for more than doubling the existing
supply of bank credit. Since the early part of 1934 fourteen billion dollars
of gold, the principal cause of excess reserves, has flowed into the country,
and the stream of incoming gold is continuing. The necessarily large
defense program of the Government will have still further expansive effects.
Government securities have become the chief asset of the banking system,
and purchases by banks have created additional deposits. Because of the
excess reserves, interest rates have fallen to unprecedentedly low levels.
Some of them are well below the reasonable requirements of an easy money
policy, and are raising serious, long-term problems for the future wellbeing of our charitable and educational institutions, for the holders of insurance policies and savings bank accounts, and for the national economy
as a whole.
The Federal Reserve System finds itself in the position of being unable
effectively to discharge all of its responsibilities. While the Congress has
not deprived the System of responsibilities or of powers, but in fact has
granted it new powers, nevertheless, due to extraordinary world conditions,
its authority is now inadequate to cope with the present and potential excess reserve problem. The Federal Reserve System, therefore, submits for
the consideration of the Congress the following five-point program:
1. Congress should provide means for absorbing a large part of existing
68

FEDERAL RESERVE SYSTEM

excess reserves, which amount to seven billion dollars, as well as such
additions to these reserves as may occur. Specifically, it is recommended
that Congress—
(a) Increase the statutory reserve requirements for demand deposits in banks in
central reserve cities to 26%; for demand deposits in banks in reserve cities
to 20%; for demand deposits in country banks to 14%; and for time deposits
in all banks to 6%.
(b) Empower the Federal Open Market Committee to make further increases of
reserve requirements sufficient to absorb excess reserves, subject to the
limitation that reserve requirements shall not be increased to more than
double the respective percentages specified in paragraph (a).
(The power to change reserve requirements, now vested in the Board of
Governors, and the control of open market operations, now vested in the
Federal Open Market Committee, should be placed in the same body.)
(c) Authorize the Federal Open Market Committee to change reserve requirements for central reserve city banks, or for reserve city banks, or for country
banks, or for any combination of these three classes.
(d) Make reserve requirements applicable to all banks receiving demand deposits
regardless of whether or not they are members of the Federal Reserve System.
(e) Exempt reserves required under paragraphs (a), (b) and (d) from the assessments of the Federal Deposit Insurance Corporation.

2. Various sources of potential increases in excess reserves should be
removed. These include: the power to issue three billions of greenbacks;
further monetization of foreign silver; the power to issue silver certificates
against the seigniorage, now amounting to one and a half billion dollars
on previous purchases of silver. In view of the completely changed international situation during the past year, the power further to devalue
the dollar in terms of gold is no longer necessary or desirable and should
be permitted to lapse. If it should be necessary to use the stabilization
fund in any manner which would affect excess reserves of banks of this
country, it would be advisable if it were done only after consultation with
the Federal Open Market Committee, whose responsibility it would be to
fix reserve requirements.
3. Without interfering with any assistance that this Government may
wish to extend to friendly nations, means should be found to prevent further
growth in excess reserves and in deposits arising from future gold acquisitions. Such acquisitions should be insulated from the credit system and,
once insulated, it would be advisable if they were not restored to the credit
system except after consultation with the Federal Open Market Committee.
4. The financing of both the ordinary requirements of Government and
the extraordinary needs of the defense program should be accomplished
by drawing upon the existing large volume of deposits rather than by
creating additional deposits through bank purchases of Government
securities. We are in accord with the view that the general debt limit
should be raised; that the special limitations on defense financing should be
removed; and that the Treasury should be authorized to issue any type of
securities (including fully taxable securities) which would be especially
suitable for investors other than commercial banks. This is clearly
desirable for monetary as well as fiscal reasons.
5. As the national income increases a larger and larger portion of the
defense expenses should be met by tax revenues rather than by borrowing.
Whatever the point may be at which the budget should be balanced, there
cannot be any question that whenever the country approaches a condition
of full utilization of its economic capacity, with appropriate consideration
of both employment and production, the budget should be balanced. This
will be essential if monetary responsibility is to be discharged effectively.

ANNUAL REPORT OF BOARD OF GOVERNORS

In making these five recommendations, the Federal Reserve System has
addressed itself primarily to the monetary aspects of the situation. These
monetary measures are necessary, but there are protective steps, equally
or more important, that should be taken in other fields, such as prevention
of industrial and labor bottlenecks, and pursuance of a tax policy appropriate to the defense program and to our monetary and fiscal needs.
It is vital to the success of these measures that there be unity of policy
and full coordination of action by the various Governmental bodies. A
monetary system divided against itself cannot stand securely. In the
period that lies ahead a secure monetary system is essential to the success
of the defense program and constitutes an indispensable bulwark of the
Nation.

FEDERAL RESERVE SYSTEM

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
(December 31, 1940)
MAKRINER S. ECCLES, of Utah, Chairman
RONALD RANSOM, of Georgia, Vice Chairman
M. S. SZYMCZAK, of Illinois

Term expires
January 31, 1944
January 31, 1942
January 31, 1948

JOHN K. MCKEE, of Ohio
CHESTER C. DAVIS, of Maryland
ERNEST G. DRAPER, of Connecticut

January 31, 1946
January 31, 1954
January 31, 1950

LAWRENCE CLAYTON, Assistant to the Chairman

ELLIOTT THURSTON, Special Assistant to the Chairman
CHESTER MORRILL, Secretary

LISTON P. BETHEA, Assistant Secretary

S. R. CARPENTER, Assistant Secretary
FRED A. NELSON, Assistant Secretary
WALTER WYATT, General Counsel

FEDERAL OPEN MARKET COMMITTEE
(December 31, 1940)
Members
MARRINER S. ECCLES, Chairman (Board of Governors)
GEORGE L. HARRISON, Vice Chairman (Elected by Federal Reserve Banks of Boston
and New York)
M. S. SZYMCZAK (Board of Governors)
JOHN K. MCKEE (Board of Governors)
RONALD RANSOM (Board of Governors)
CHESTER C. DAVIS (Board of Governors)
ERNEST G. DRAPER (Board of Governors)

JOHN S. SINCLAIR (Elected by Federal Reserve Banks of Philadelphia and Cleveland)
ROBERT S. PARKER (Elected by Federal Reserve Banks of Richmond, Atlanta, and
Dallas)
GEORGE J. SCHALLER (Elected by Federal Reserve Banks of Chicago and St. Louis)
WILLIAM A. DAY (Elected by Federal Reserve Banks of Minneapolis, Kansas City,
and San Francisco)
Officers
CHESTER MORRILL, Secretary

S. R. CARPENTER, Assistant Secretary
E. A. GOLDENWEISER, Economist
JOHN H. WILLIAMS, Associate Economist
WALTER WYATT, General Counsel

J. P. DREIBELBIS, Assistant General Counsel
Agent
FEDERAL RESERVE BANK OF NEW YORK

R. G. ROUSE, Manager of System Open Market Account

ANNUAL REPORT OF BOARD OF GOVERNORS

FEDERAL ADVISORY COUNCIL
(December 31, 1940)
OFFICERS
President, EDWARD E. BROWN
Vice President, HOWARD A. LOEB
Secretary, WALTER LICHTENSTEIN
EXECUTIVE COMMITTEE
EDWARD E. BROWN
HOWARD A. LOEB
THOMAS M. STEELE

LEON FRASER
B. G. HTJNTINGTON
ROBERT M. HANES

MEMBERS
District No. 1—THOMAS M. STEELE, President, The First National Bank and Trust
Company of New Haven, Connecticut.
District No. 2—LEON FRASER, President, The First National Bank of the City of
New York, New York, New York.
District No. 3—HOWARD A. LOEB, Chairman, Tradesmens National Bank & Trust
Company, Philadelphia, Pennsylvania.
District No. 4—B. G. HUNTINGTON, President, The Huntington National Bank,
Columbus, Ohio.
District No. 5—ROBERT M. HANES, President, Wachovia Bank and Trust Company,
Winston-Salem, North Carolina.
District No. 6—RYBTJRN G. CLAY, Director, Fulton National Bank, Atlanta, Georgia.
District No. 7—EDWARD E. BROWN, President, The First National Bank of Chicago,
Chicago, Illinois.
District No. 8—S. E. RAGLAND, President, The First National Bank of Memphis,
Memphis, Tennessee.
District No. 9—JOHN CROSBY, Vice President, Farmers and Mechanics Savings Bank
of Minneapolis, Minneapolis, Minnesota.
District No. 10—JOHN EVANS, President, First National Bank, Denver, Colorado.
District No. 11—R. E. HARDING, President, The Fort Worth National Bank, Fort
Worth, Texas.
District No. 12—PAUL S. DICK, President, United States National Bank, Portland,
Oregon.

FEDERAL RESERVE SYSTEM

SENIOR OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS
(December 3 1 , 1940)
CHAIRMEN AND DEPUTY CHAIRMEN

Federal Reserve Bank of—

Chairman

Deputy Chairman

Boston

Frederic H. Curtiss

Henry S. Dennison

New York

Owen D. Young

Beardsley Ruml

Philadelphia

Thomas B. McCabe

Alfred H. Williams

Cleveland

Geo. C. Brainard

R. E. Klages

Richmond.

Robt. Lassiter

W. G. Wysor

Atlanta

Frank H. Neely

J. F. Porter

Chicago

R. E. Wood

F. J. Lewis

St. Louis

Wm. T. Nardin

Oscar Johnston

Minneapolis

W. C. Coffey

Roger B. Shepard

Kansas City

R. B. Caldwell

J. J. Thomas

Dallas

J. H. Merritt

Jay Taylor

San Fancisco

R. C. Force

St. George Holden

Each Federal Reserve Bank has nine directors divided equally into Classes A, B,
and C. The term of office of a director is three years. The Class C directors are
appointed by the Board of Governors of the Federal Reserve System, and cannot
be officers, directors, employees, or stockholders of any bank. The Class B directors,
elected by member banks, must be actively engaged in some commercial, agricultural,
or industrial pursuit and may not be officers, directors, or employees of any bank.
The Class A directors are elected by the member banks as the banks' own representatives.
For the purpose of electing Class A and Class B directors, the member banks in
each Federal Reserve district are divided into three groups—large, small, and
medium-sized banks. Each of the three groups elects one Class A and one Class B
director. The Board of Governors of the Federal Reserve System designates one
of the Class C directors as chairman and Federal Reserve agent, and another as
deputy chairman. The board of directors of each Federal Reserve Bank appoints a
president and a first vice president, subject to the approval of the Board of Governors, to serve for terms of five years. The president is the chief executive officer
of the bank and all other officers and employees are responsible to him.
Federal Reserve Bank branches have either five or seven directors, of whom a
majority, including the managing director, are appointed by the board of directors
of the parent Federal Reserve Bank and the others are appointed by the Board of
Governors of the Federal Reserve System.

ANNUAL REPORT OF BOARD OF GOVERNORS
PRESIDENTS AND VICE PRESIDENTS

Federal
Reserve Bank
of—

President

Vice Presidents

First Vice President

Boston

R. A. Young

W. W. Paddock

William Willett 1

New York

George L. Harrison

Allan Sproul .

R. M. Gidney
L. W. Knoke
Walter S. Logan
L. R. Rounds
Robert G. Rouse
John H. Williams

Frank J. Drinnen

W. J. Davis

Philadelphia... John S. Sinclair

TTI

TT:II

hi. U. Jtllll

Cleveland

M. J. Fleming

F. J. Zurlinden

C. A. Mcllhenny 2
Wm. H. Fletcher
W. F. Taylor2
G. H. Wagner

Richmond

Hugh Leach

J. S. Walden, Jr

J. G. Fry
Geo. H. Keesee1

Atlanta

Robt. S. Parker

W. S. McLarin, Jr.

Malcolm H. Bryan
H. F. Conniff

Chicago

Geo. J. Schaller

H. P. Preston

J. H. Dillard 2
W. H. Snyder
C. S. Young

St. Louis

Wm. McC. Martin

F. Guy Hitt

0. M. Attebery1
C. M. Stewart

0. S. Powell

E. W. Swanson
Harry I. Ziemer2

Minneapolis... J. N. Peyton

J. W. Helm2
H. G. Leedy

Kansas City... Geo. H. Hamilton. . . . C. A. Worthington
Dallas

R. R. Gilbert

San Francisco. Wm. A. Day

Cashier.

E. B. Stroud

. . . R. B. Coleman
W. J. Evans1
W. 0. Ford
C. E. Earhart 1
W. M. Hale
R. B. West

Ira Clerk

Also cashier.

FEDERAL RESERVE SYSTEM

DIRECTORS OF FEDERAL RESERVE BANKS
District No. 1—Boston
Class A.Lewis S. Reed
Allan Forbes
Leon A. Dodge
Class S.Edward S. French
Philip R. Allen
Edward J. Frost
Class C.Henry I. Harriman
Frederic H. Curtiss
Henry S. Dennison
Class A:
William C. Potter
Otis A. Thompson
Neil H. Dorrance
Class B:
Thomas J. Watson
Walter C. Teagle
Robert T. Stevens
Class C.Owen D. Young
Beardsley Ruml
Edmund E. Day
Appointed by Federal Reserve Bank:
Robert M. O'Hara
William A. Dusenbury
Frank F. Henry
George F. Rand
Appointed by Board of Governors:
Howard Kellogg
Marion B. Folsom
Gilbert A. Prole
Class A.John B. Henning
Joseph Wayne, Jr
George W. Reily
Class B:
C. Frederick C. Stout
Harry L. Cannon
Ward D. Kerlin
Class C:
Warren F. Whittier
Alfred H. Williams
Thomas B. McCabe
Class A:
Harry B. McDowell
Frank F. Brooks
Ben R. Conner
Class B:
Ross P. Wright
George D. Crabbs
Thomas E. Millsop
Class C.George C. Brainard
Vacancy
Reynold E. Klages
Appointed by Federal Reserve Bank:
Benedict J. Lazar
John J. Rowe
Buckner Woodford
Appointed by Board of Governors:
Frank A. Brown
Stuart B. Sutphin

Term
Expires
Dec. SI
President, Citizens and Mfg. Nat. Bank, Waterbury, Conn..
President, State Street Tr. Co., Boston, Mass
President, First National Bank, Damariscotta, Me

1940
1941
1942

President, Boston & Maine R. RM Springfield, Vt
Chairman, Bird & Son, Inc., E. Walpole, Mass
Vice President, Treasurer, and Director, William Filene's
Sons Co., Boston, Mass

1940
1941

Director, New England Power Co., Boston, Mass
Vice President, Board of Trustees, Wellesley College, Wellesley, Mass
President, Dennison Mfg. Co., Framingham, Mass

1942
1940
1941
1942

District No. 2—New York
Chairman, Guaranty Trust Co., New York, N. Y
President, Nat. Bank & Tr. Co., Norwich, N. Y
President, First Nat. Bank & Tr. Co., Camden, N. Y

1940
1941
1942

President, International Business Machines Corp., New
York, N. Y
Chairman, Standard Oil Co. of New Jersey, New York,
N. Y
President, J. P. Stevens & Co., Inc., New York, N. Y

1941
1942

Honorary Chairman, General Electric Co., New York,
N. Y
Treasurer, R. H. Macy & Co., Inc., New York, N. Y
President, Cornell University, Ithaca, N. Y

1940
1941
1942

1940

Buffalo Branch
Managing Director, Buffalo, N. Y
President, First National Bank, Olean, N. Y
Chairman, Washburn Crosby Co., Inc., Buffalo, N. Y
President, The Marine Trust Co., Buffalo, N. Y

1940
1940
1941
1942

President, Spencer Kellogg & Sons, Inc., Buffalo, N. Y...
Treasurer, Eastman Kodak Co., Rochester, N. Y
Genesee Farm Supply Co., Batavia, N. Y

1940
1941
1942

District No. 3—Philadelphia
President, Wyoming Nat. Bank, Tunkhannock, Pa
President, Philadelphia Nat. Bank, Philadelphia, Pa
President, Harrisburg Nat. Bank, Harrisburg, Pa

1940
1941
1942

John R. Evans & Company, Camden, N. J
President, H. P. Cannon & Son, Inc., Bridgeville, Del
Secretary and Treasurer, Camden Forge Co., Camden, N. J.

1940
1941
1942

Farmer, Dairyman and Cattle Breeder, Douglassville, Pa...
Dean of Wharton School of Finance, University of Pennsylvania, Philadelphia, Pa
President, Scott Paper Co., Chester, Pa
,

1941
1942

1940

District No. 4—Cleveland
President, McDowell Nat. Bank, Sharon, Pa
President, First National Bank, Pittsburgh, Pa
President, First National Bank, Ada, Ohio

1940
1941
1942

Secretary-Treasurer, Reed Mfg. Co., Erie, Pa
President, Philip Carey Mfg. Co., Cincinnati, Ohio
President, Weirton Steel Company, Weirton, W. Va

1940
1941
1942

President, General Fireproofing Co., Youngstown, Ohio

1940
1941
1942

President, Columbus Auto Parts Co., Columbus, Ohio....
Cincinnati Branch
Managing Director, Cincinnati, Ohio
President, Fifth Third Union Tr. Co., Cincinnati, Ohio....
Vice President and Cashier, Bourbon-Agricultural Bank &
Trust Co., Paris, Ky

1940
1940

Farmer, Chillicothe, Ohio
President, I. V. Sutphin Co., Cincinnati, Ohio.

1940
1941

1941

ANNUAL REPORT OF BOARD OF GOVERNORS
Pittsburgh Branch

Appointed by Federal Reserve Bank:
Percy A. Brown
Samuel W. Harper
Clarence Stanley
Appointed by Board of Governors:
George T. Ladd.
Harry S. Wherrett
Class A.James C. Braswell
Lewis E. Johnson
Charles E. Rieman
Class B.John H. Hanna
Edwin Malloy
Charles C. Reed
Class C:
Robert Lassiter
Charles P. McCormick
William G. Wysor

Managing Director, Pittsburgh, Pa
President, Wheeling Dollar Sav. & Trust Co., Wheeling,
W. Va
President, Union Trust Company, Pittsburgh, Pa

Term
Expires
Dec. SI
1940
1940
1941

President, United Engineering & Foundry Co., Pittsburgh,
Pa
1940
President, Pittsburgh Plate Glass Co., Pittsburgh, Pa
1941

District No. 5—Richmond
President, Planters Nat. Bank & Tr. Co., Rocky Mount,
N. C
Chairman, First National Bank, Alderson, W. Va
President, Western National Bank, Baltimore, Md

1940
1941
1942

Chairman, Capital Transit Co., Washington, D. C
President and Treasurer, Cheraw Cotton Mills, Inc.,
Cheraw, S. C
Vice President and General Manager, Williams & Reed,
Inc., Richmond, Va

1941

Chairman, Mooresville Cotton Mills, Mooresville, N. C
President, McCormick & Co., Inc., Baltimore, Md
General Manager, Southern States Cooperative, Inc.,
Richmond, Va

Baltimore Branch
Appointed by Federal Reserve Bank:
W. Robert Milford
Managing Director, Baltimore, Md
James Dixon
President, Easton National Bank, Easton, Md
George W. Reed
President, National Marine Bank, Baltimore, Md
James C. Fenhagen
Chairman, Executive Committee, Baltimore National Bank,
Baltimore, Md
Appointed by Board of Governors:
W. Frank Roberts
President, Standard Gas Equipment Corp., Baltimore, Md..
W. Frank Thomas
Construction Engineer and Real Estate Management, Westminster, Md
Joseph D. Baker, Jr
Secretary and Treasurer, The Standard Lime and Stone
Company, Baltimore, Md

1940

1942
1940
1941
1942

1940
1940
1941
1942
1940
1941
1942

Charlotte Branch

Appointed by Federal Reserve Bank:
William T. Clements
Managing Director, Charlotte, N. C
Torrence E. Hemby
Executive Vice President, American Trust Co., Charlotte,
N.C
J. Gerald Cowan
Vice President, Wachovia Bank & Trust Co., Asheville,
N.C
Byron M. Edwards
Executive Vice President, South Carolina National Bank,
Columbia, S. C
Appointed by Board of Governors:
George M. Wright
President, Republic Cotton Mills, Great Falls, S. C
Vacancy
David W. Watkins
Director of Extension, Clemson College, Clemson, S. C
Class A.William D. Cook
George J. White
Thomas K. Glenn
Class E.Fitzgerald Hall
Ernest T. George
John A. McCrary
Class C:
Rufus C. Harris
Frank H. Neely
Joe Frank Porter

1940
1941
1942
1940
1941
1942

District No. 6—Atlanta
Executive Vice President, First National Bank, Meridian,
Miss
President, First National Bank, Mount Dora, Fla
Chairman, Trust Co. of Georgia, Atlanta, Ga

1940
1941
1942

President, Nash., Chat. & St. Louis Ry., Nashville, Tenn...
President and Chairman, Seaboard Refining Co., Ltd., New
Orleans, La
*'
Vice President and Treasurer, J. B. McCrary Co., Inc.,
Atlanta, Ga

1941

President,
Executive
Atlanta,
President,

Tulane University, New Orleans, La
Vice President and Secretary, Rich's, Inc.,
Ga
Tenn. Farm Bureau Fed., Columbia, Tenn

Birmingham Branch
Appointed by Federal Reserve Bank:
Paul L. T. Beavers
:. Managing Director, Birmingham, Ala
John S. Coleman
President, Birmingham Trust & Sav. Co., Birmingham,
Ala
Gordon D. Palmer
Executive Vice President, First National Bank, Tuscaloosa,
Ala
John C. Persons
President, First National Bank, Birmingham, Ala
Appointed by Board of Governors:
Edward L. Norton
Vice President, The Munger Estate, Birmingham, Ala
Donald Comer
Chairman, Avondale Mills, Birmingham, Ala
Howard Gray
Farmer, New Market, Ala

1940

1942
1940
1941
1942

1940
1940
1941
1942
1940
1941
1942

FEDERAL RESERVE SYSTEM
Jacksonville Branch
Appointed by Federal Reserve Bank:
George S. Vardeman, Jr
Junius C. McCrocklin
William R. McQuaid
Bert C. Teed
Appointed by Board of Governors:
Bayless W. Haynes
Robert H. Gamble
Howard Phillips

Managing Director, Jacksonville, Fla
Executive Vice President, First National Bank, Tarpon
Springs, Fla
President, Barnett National Bank, Jacksonville, Fla
First Vice President, First National Bank, Palm Beach,
Fla
President, Wilson & Toomer Fertilizer Co., Jacksonville,
Fla
President, Florida Brick & Tile Corp., Jacksonville, Fla....
Executive Vice President, Dr. P. Phillips Co., Inc., Orlando,
Fla

77
Term
Expires
Dec. 81
1940
1940
1941
1942
1940
1941
1942

Nashville Branch
Appointed by Federal Reserve Bank:
Joel B. Fort, Jr
George N. Bass
Edward B. Maupin
Frank M. Farris
Appointed by Board of Governors:
Elbridge W. Palmer
Clyde B. Austin
William E. McEwen

Managing Director, Nashville, Tenn
Cashier, First National Bank of Franklin Co., Decherd,
Tenn
Cashier, Peoples National Bank, Shelbyville, Tenn
President, Third National Bank, Nashville, Tenn

1940

President, Kingsport Press, Inc., Kingsport, Tenn
President, The Austin Co., Inc., Greeneville, Tenn
Farmer and Stock Raiser, Williamsport, Tenn

1940
1941
1942

New Orleans Branch
Appointed by Federal Reserve Bank:
Lewis M. Clark
Oliver G. Lucas
Herbert Holmes
Emile E. Soulier
Appointed by Board of Governors:
Eugene F. Billington
Alexander Fitz-Hugh
Henry G. Chalkley, Jr

Class A.Edward R. Estberg
Frank D. Williams
Walter J. Cummings
Class B:
Charles B. Van Dusen
Nicholas H. Noyes
Max W. Babb
Class C.Frank J. Lewis
Robert E. Wood
Clifford V. Gregory

Managing Director, New Orleans, La
President, National Bank of Commerce, New Orleans, La...
President, Delta Nat. Bank, Yazoo City, Miss
Executive Vice President, First Nat. Bank, Lafayette, La...

1940
1940
1941
1942

Vice President & Secretary, Soule Steam Feed Works, Meridian, Miss
Vice President, P. P. Williams Co., Vieksburg, Miss
General Manager, Sweet Lake Land & Oil Co., Inc., Lake
Charles, La

1940
1941
1942

District No. 7—Chicago
Chairman, Waukesha Nat. Bank, Waukesha, Wis
Executive Vice President and Cashier, First Capital National Bank, Iowa City, Iowa
Chairman, Cont'l. 111. Nat. Bank and Trust Co., Chicago,
111

1942

Director, S. S. Kresge Co., Detroit, Mich
Vice President and Secretary, Eli Lilly and Company, Indianapolis, Ind
President, Allis-Chalmers Mfg. Co., Milwaukee, Wis

1941
1942

Chairman, F. J. Lewis Mfg. Co., Chicago, 111
Chairman, Sears, Roebuck & Co., Chicago, 111
Associate Publisher, Wallaces' Farmer and Iowa Homestead,
Des Moines, Iowa

1940
1941

1940

1940
1941
1942

Detroit Branch
Appointed by Federal Reserve Bank:
Vacancy
Walter S. McLucas
Joseph M. Dodge
James E Davidson
Appointed by Board of Governors:
Alfred C. Marshall
L. Whitney Watkins
Harry L. Pierson
Class A:
George R. Corlis
Sidney Maestre
Max B. Nahm
Class .B.Harvey C. Couch
John R. Stanley
James W. Harris
Class C.Oscar G. Johnston
Douglas W. Brooks
William T. Nardin

Managing Director, Detroit, Mich
Chairman, The National Bank of Detroit, Detroit, Mich....
President, The Detroit Bank, Detroit, Mich
President, Peoples Com. & Sav. Bank, Bay City, Mich

1940
1940
1941
1942

President, Detroit Edison Co., Detroit, Mich
Farmer, Manchester, Mich
President, Detroit Harvester Co., Detroit, Mich

1940
1941
1942

District No. 8—St. Louis
Cashier, Anna National Bank, Anna, 111
President, Mississippi Valley Trust Co., St. Louis, Mo
Vice President, Citizens National Bank, Bowling Green, Ky.

1940
1941
1942

President, Ark. Power & Light Co., Pine Bluff, Ark
Secretary, Treasurer, Stanley Clothing Co., Evansville,
Ind
Chairman, Harris-Langenberg Hat Co., St. Louis, Mo

1940

President, Delta and Pine Land Co., Scott, Miss
President, Union Compress & Warehouse Co., Memphis,
Tenn
Vice President and General Manager, Pet Milk Company,
St. Louis, Mo

1940

1941
1942

ANNUAL REPORT OF BOARD OF GOVERNORS
Little Rock Branch

Appointed by Federal Reserve Bank:
Arthur F. Bailey
Arthur E. McLean
Paul R. McCoy
James H. Penick
Appointed by Board of Governors:
Ira N. Barnett, Jr
Henry H. Tucker
Romeo E. Short
Appointed by Federal Reserve Bank:
Charles A. Schacht
Phil E. Chappell
Ralph C. Gifford
James O. Sanders
Appointed by Board of Governors:
Perry B. Gaines
James B. Hill
George O. Boomer
Appointed by Federal Reserve Bank:
William H. Glasgow
Bert A. Lynch
Oliver Benton
Vance J. Alexander
Appointed by Board of Governors:
Rufus C. Branch
J. Holmes Sherard
Jesse P. Norfleet

Class B.William O. Washburn
James E. O'Connell
Albert P. Funk

1940
1940
1941
1942

Farmer and Stock Raiser, Carrollton, Ky
President, Louisville & Nashville R. R., Louisville, Ky...
Vice President, The Girdler Corporation, Louisville, K y . . .
Memphis Branch

1940
1941
1942

Managing Director, Memphis, Tenn
President, Farmers Bank & Trust Co., Blytheville, Ark....
President, National Bank of Commerce, Jackson, Tenn...
President, Union Planters Nat. Bank & Tr. Co., Memphis,
Tenn

1940
1940
1941
1942

Cotton Farmer and Ginner, Pecan Point, Ark
J. Holmes Sherard & Co., Sherard, Miss
President, Sledge & Norfleet, Memphis, Tenn

1940
1941
1942

President, W. D. Cochran Freight Lines, Iron Mountain,
Mich
President, Finch, Van Slyck & McConville, St. Paul, Minn..
Dean, College of Agriculture, University of Minnesota, St.
Paul, Minn

Roger B. Shepard
Walter C. Coffey
Appointed by Federal Reserve Bank:
Robert E. Towle
Arthur R. McDermott
Peter Pauly
Appointed by Board of Governors:
Alex Cunningham
Hobart D. Myrick

1940
1941
1942
1940
1941
1942
1940
1941
1942

Helena Branch
Managing Director, Helena, Mont
Vice President, Montana National Bank, Billings, Mont...
President, Deer Lodge Bank & Tr. Co., Deer Lodge, Mont..

1940
1940
1941

Vice President and Treasurer, Western Life Ins. Co., Helena,
Mont
Farmer, Square Butte, Mont

1940
1941

District No. 10—Kansas City

Appointed by Federal Reserve Bank:
Joseph E. Olson
William C. Kurtz

Managing Director, Louisville, Ky
Cashier, Planters Bk. & Tr. Co., Hopkinsville, Ky
President, First National Bank, Louisville, Ky
President, First National Bank, Huntingburg, Ind

President, W. O. Washburn & Sons, St. Paul, Minn
President, Eddy's Bakeries, Inc., Helena, Mont
President and Treasurer, LaCrosse Rubber Mills Co., LaCrosse, Wis

Class C:
William D. Cochran

James B. Grant
Wilson McCarthy

1940
1941
1942

Vice President, First Nat. Bk. & Tr. Co., Minneapolis,
Minn
President, Pierre National Bank, Pierre, S. D
Executive Vice President, First National Bank, Oakes,
N. D
:

James R. McKnight
Fred D. McCartney

Harold Kountze
Roblin H. Davis
Appointed by Board of Governors:
Albert K. Mitchell

Manager, Barnett Bros. Mercantile Co., Batesville, Ark
President, Fones Bros. Hardware Co., Little Rock, Ark
Farmer, Brinkley, Ark
Louisville Branch

District No. 9—Minneapolis

Class A:
Melvin O. Grangaard

Class A.Myron A. Limbocker
Edward E. Mullaney
Thomas A. Dines
Class B.Joseph M. Bernardin
Lee E. Phillips
Willard D. Hosford
Class C.Robert B. Caldwell
John J. Thomas
Clarence Roberts

Managing Director, Little Rock, Ark
President, Commercial Nat. Bank, Little Rock, Ark
Chairman, Peoples Nat. Bank, Stuttgart, Ark
Vice President, W. B. Worthen Co., Little Rock, Ark

Term
Expires
Dec. SI
1940
1940
1941
1942

President, Citizens National Bank, Emporia, Kans
President, Farmers & Merchants Bank, Hill City, Kans
President, U. S. National Bank, Denver, Colo

1940
1941
1942

Vice President, Burk Lumber Company, Dawson, N. M...
Phillips Petroleum Co., Bartlesville, Okla
Vice President, John Deere Plow Co., Omaha, Neb

1940
1941
1942

McCune, Caldwell & Downing, Kansas City, Mo
Attorney-at-Law, Seward, Neb
Editor, The Farmer-Stockman, Oklahoma City, Okla

1940
1941
1942

Denver Branch
Managing Director, Denver, Colo
President and General Manager, Independent Lumber Co.,
Grand Junction, Colo
President, Colorado National Bank, Denver, Colo
President, Denver National Bank, Denver, Colo

1940
1941
1942

1940

President and General Manager, T. E. Mitchell & Son, Albert, N. M
Lewis and Grant, Denver, Colo
President, Denver & Salt Lake R. R. Co., Denver, Colo...

1940
1941
1942

FEDERAL RESERVE SYSTEM
Oklahoma City Branch
Appointed by Federal Reserve Bank:
George H. Pipkin
Samuel W. Hayes
Leroy D. Edgington
Arthur E. Stephenson
Appointed by Board of Governors:
Lee Clinton
Neil R. Johnson
Thomas S. Hanna

Managing Director, Oklahoma City, Okla
Hayes, Richardson, Shartel, Gilliland & Jordan, Oklahoma
City, Okla
President, First National Bank, Ponca City, Okla
President, Central National Bank, Enid, Okla
Realtor, Tulsa, Okla
Rancher and Farmer, Norman, Okla
President, Baker, Hanna & Blake Co., Oklahoma City,
Okla

Appointed by Federal Reserve Bank:
Lloyd H. Earhart
George A. Bible
George W. Holmes
Thomas L. Davis
Appointed by Board of Governors:
William H. Schellberg
Robert E. Campbell
Harry L. Dempster

79
Term
Expires
Dec. SI
1940
1940
1941
1942
1940
1941
1942

Omaha Branch
Managing
President,
President,
President,

Director, Omaha, Neb
First National Bank, Rawlins, Wyo
First National Bank, Lincoln, Neb
First National Bank, Omaha, Neb

President, Union Stock Yards Co., Omaha, Neb
Chairman, Miller & Paine, Lincoln, Neb
President, Dempster Mill Mfg. Co., Beatrice, Neb

1940
1940
1941
1942
1940
1941
1942

District No. 11—Dallas

Class A:
Pat E. Hooks
Ford Seale
Ed H. Winton

President, First National Bank, Itasca, Tex
President, Citizens National Bank, Denison, Tex
Executive Vice President, Continental National Bank, Fort
Worth, Tex

Class B:
James M. West
Ernest L. Kurth
Jesse R. Milan
Class C.Joseph B. Cozzo
James H. Merritt
Jay Taylor

1940
1941
1942

Chairman, West Production Co., Houston, Tex
Vice President and General Manager, Angelina County
Lumber Co., Keltys, Tex
President, Cooper Company, Inc., Waco, Tex

1940
1941
1942

Womack & Cozzo, Dallas, Tex
Retired, McKinney, Tex
Rafter O Cattle Company, Amarillo, Tex

1940
1941
1942

El Paso Branch
Appointed by Federal Reserve Bank:
Joseph L. Hermann
Charles N. Bassett
Frank R. Coon
Homer A. Jacobs
Appointed by Board of Governors:
Jack B. Martin
Franklin M. Hayner
Ray E. Sherman
Appointed by Federal Reserve Bank:
William D. Gentry
Vacancy
Sam R. Lawder
Preston B. Doty
Appointed by Board of Governors:
George G. Chance
Henry Renfert
Sam Taub

Managing Director, El Paso, Tex
President, State National Bank, El Paso, Tex
President, Mimbres Valley Bank, Deming, N. M
Vice President, El Paso National Bank, El Paso, Tex

1940
1940
1941
1942

President, Arizona Ice & Cold Storage Co., Tucson, Ariz...
President, Las Cruces Lumber Co., Las Cruces, N. M
President, Leavell and Sherman, Ind., El Paso, Tex

1940
1941
1942

Houston Branch
Managing Director, Houston, Tex
Vice President, First National Bank, Houston, Tex
President, First National Bank, Beaumont, Tex

1940
1940
1941
1942

Farmer, Bryan, Tex
Renfert-Helmbrecht Co., Galveston, Tex
J. N. Taub & Sons, Houston, Tex

1940
1941
1942

San Antonio Branch
Appointed by Federal Reserve Bank:
Miers Crump
Vacancy
John K. Beretta
Ernest J. Miller
Appointed by Board of Governors:
Dolph Briscoe
Jamie M. Odom
Edwin F. Flato

Class A:
Charles K. Mclntosh
Reno Odlin
Carroll F. Byrd
Class B:
Elmer H. Cox
William G. Volkmann
Reese H. Taylor

Managing Director, San Antonio, Tex
President, National Bank of Commerce, San Antonio, Tex..
President, South Texas Nat. Bank, San Antonio, Tex
Stock Raiser, Uvalde, Tex
General Contractor, Austin, Tex
President, Corpus Christi Hardware Co., Corpus Christi,
Tex

1940
1940
1941
1942
1940
1941
1942

District No. 12—San Francisco
Chairman, Bank of California, N. A., San Francisco, Calif..
President, Puget Sound National Bank, Tacoma, Wash...
Executive Vice President and Chairman, First Nat. Bank,
Willows, Calif

1940
1941
1942

President, Madera Sugar Pine Co., San Francisco, Calif....
Vice President, A. Schilling and Co., San Francisco, Calif..
President, Union Oil Company, Los Angeles, Calif

1940
1941
1942

ANNUAL REPORT OF BOARD OF GOVERNORS

Class C:
St. George Holden
Raymond C. Force
Carlyle Thorpe

Appointed by Federal Reserve Bank:
W. Norman Ambrose
Victor H. Rossetti
Charles E. Brouse
Appointed by Board of Governors:
William S. Rosecrans
Carl V. Newman
Appointed by Federal Reserve Bank:
David L. Davis
Nona A. Davis
Ernest B. MacNaughton
Appointed by Board of Governors:
Albert E. Engbretsen
George T. Gerlinger
Appointed by Federal Reserve Bank:
Winnie L. Partner
Orval W. Adams
Frederick P. Champ
Appointed by Board of Governors:
Roscoe C. Rich
Herbert S. Auerbach
Appointed by Federal Reserve Bank:
Clarence R. Shaw
Ned A. Telyea
Andrew Price
Appointed by Board of Governors:
Fred Nelsen
Charles F. Larrabee

President, St. George Holden Realty Co., San Francisco,
Calif
Chairman, Executive Committee, Caterpillar Tractor Co.,
San Leandro, Calif
General Manager, California Walnut Growers Association,
Los Angeles, Calif

Term
Expires
Dec. 31
1940
1941
1942

Los Angeles Branch
Managing Director, Los Angeles, Calif
President, Farmers & Merchants Nat. Bank, Los Angeles,
Calif
President, Citizens Nat. Trust & Sav. Bank, Riverside,
Calif

1940

1941

Land Management & Investments, Los Angeles, Calif
President, Calavo Growers of California, Los Angeles, Calif.

1940
1941

1940

Portland Branch
Managing Director, Portland, Ore
Vice President, Baker-Boyer National Bank, Walla Walla,
Wash
President, First National Bank, Portland, Ore

1940

President, Engbretsen Seed Co., Astoria, Ore
President, Willamette Valley Lumber Co., Portland, Ore...

1940
1941

Salt Lake City Branch
Managing Director, Salt Lake City, Utah
Executive Vice President, Utah State Nat. Bank, Salt Lake
City, Utah
President, Utah Mortgage Loan Corp., Logan, Utah

1940

President, R. C. Rich Sheep'Co., Burley, Idaho
President, Auerbach Company, Salt Lake City, Utah

1940
1941

Seattle Branch
Managing Director, Seattle, Wash
President, Old Nat. Bank & Union Trust Co., Spokane,
Wash
President, National Bank of Commerce, Seattle, Wash
Dairy Farmer, Seattle, Wash
Vice President, Pacific American Fisheries, Inc., Bellingham, Wash

1940
1940
1941
1940
1941

FEDERAL RESERVE SYSTEM

STATE BANK AND TRUST COMPANY MEMBERS
Following is a list of the 1,342 State bank and trust company members
of the Federal Reserve System on December 31, 1940.
DISTRICT NO. 1 (42 banks)
CONNECTICUT^ (5 banks)
Hartford
Phoenix State Bank & Trust
Co.
New Haven
Union & New Haven Trust Co.
Torrington
Brooks Bank & Trust Co.
Waterbury
Colonial Trust Co.
Waterbury Trust Co.
Augusta
Bangor
Bar Harbor
Ellsworth
Sanford

MAINE (5 banks)
Depositors Trust Co.
Merrill Trust Co.
Bar Harbor Banking & Trust
Co.
Union Trust Co.
Sanford Trust Co.

MASSACHUSETTS (29 banks)
Arlington
Menotomy Trust Co.
Boston
New England Trust Co.
Old Colony Trust Co.
Pilgrim Trust Co.
State Street Trust Co.
United States Trust Co.
Bridgewater
Bridgewater Trust Co.
Brookline
Norfolk County Trust Co.
Cambridge
County Bank & Trust Co.
Harvard Trust Co.
Fall River
B.M.C. Durfee Trust Co.
Fall River Trust Co.
Gloucester
Gloucester Safe Deposit &
Trust Co.
Greenfield
Franklin County Trust Co.
Holyoke
Hadley Falls Trust Co.
Hyannis
Hyannis Trust Co.
Lynn
Security Trust Co.
Milton
Blue Hill Bank & Trust Co.
Newton
Newton Trust Co.
Norwood
Norwood Trust Co.
Quincy
Quincy Trust Co.
Salem
Naumkeag Trust Co.
Somerville
Somerville Trust Co.
Springfield
Springfield Safe Deposit &
Trust Co.
Union Trust Co.
Taunton
Bristol County Trust Co.
Wellesley Hills
Wellesley Trust Co.
Winchester
Winchester Trust Co.
Worcester
Worcester County Trust Co.
Con way

NEW HAMPSHIRE (1 bank)
Carroll County Trust Co.

RHODE ISLAND (2 banks)
Providence
Industrial Trust Co.
Union Trust Co.
DISTRICT NO. 2 (178 banks)
CONNECTICUT! (1 bank)
Springdale
Springdale Bank & Trust Co.
NEW JERSEYi (48 banks)
Bayonne Trust Co.
Bloomfield Bank & Trust Co.
Community Trust Co.
Bogota
Bank of Bogota
Boonton
Boonton Trust Co.
Bound Brook
Bound Brook Trust Co.
Carteret
Carteret Bank & Trust Co.
Cranford
Cranford Trust Co.
Dover
Dover Trust Co.
Dunellen
Peoples Trust Co.
Bayonne
Bloomfield

DISTRICT NO. 2—Continued
NEW JERSEY—continued
East Orange
Savings Investment & Trust
Co.
Elizabeth
Central Home Trust Co.
Elizabethport Banking Co.
Fort Lee
Fort Lee Trust Co.
Franklin
Sussex County Trust Co.
Glen Ridge
Glen Ridge Trust Co.
Glen Rock
Glen Rock Bank
Hackensack
Hackensack Trust Co.
Peoples Trust Co. of Bergen
County
Jersey City
Commercial Trust Co. of New
Jersey
Linden
Linden Trust Co.
Montclair
'.'.'. .Bank of Montclair
Montclair Trust Co.
Morristown
Morristown Trust Co.
Newark
Clinton Trust Co.
Columbus Trust Co.
Federal Trust Co.
Fidelity Union Trust Co.
Franklin-Washington Trust Co.
Merchants & Newark Trust Co
United States Trust Co.
West Side Trust Co.
Nutley
Bank of Nutley
Passaic
Bank of Passaic & Trust Co.
Peoples Bank & Trust Co.
Perth Amboy
First Bank & Trust Co.
Plainfield
Mid-City Trust Co.
Plainfield Trust Co.
State Trust Co.
Ridgefield Park .... Ridgefield Park Trust Co.
Ridgewood
North Jersey Trust Co.
Rochelle Park
Rochelle Park Bank
Rutherford
Rutherford Trust Co.
South Orange
South Orange Trust Co.
Summit
Summit Trust Co.
Tenafly
Tenafly Trust Co.
Westfield
Peoples Bank & Trust Co.
Westfield Trust Co.
NEW YORK (129 banks)
.Citizens & Farmers Trust Co.
Adams
. First Trust Co.
Albany
State Bank of Albany
.Bank of Amity ville
Amity ville
Amsterdam
.Montgomery County Trust Co.
Arcade
.Citizens Bank
Avoca
.Bank of Avoca
Babylon
.Bank of Babylon
Baldwin
. Peoples State Bank
Batavia
. Genesee Trust Co.
Bayshore
.South Side Bank
Belmont
. State Bank of Belmont
Binghamton
.Marine Midland Trust Co.
Blasdell
.Bank of Blasdell
Brooklyn (see New York)
Buffalo
. Liberty Bank
Manufacturers
& Traders
Trust Co.
Marine Trust Co.
.Ontario County Trust Co.
Canandaigua...
.Canaseraga State Bank
.First State Bank
Canisteo
. Bank of Cattaraugus
Cattaraugus
Center Moriches.. .Center Moriches Bank
. State Bank of Chatham
Chatham
.Chester-Schroon-Horicon Bank
Chestertown
. Clymer State Bank
Clymer
.Cohocton State Bank
Cohocton
. De Ruyter State Bank
DeRuyter
. Dunkirk Trust Co.
Dunkirk
Ellenburg Depot. . State Bank of Ellenburg
.Chemung Canal Trust Co.
Elmira
Elmira Bank & Trust Co.

1
Exclusive of part of State located in another district.

ANNUAL REPORT OF BOARD OF GOVERNORS
DISTRICT NO. 2—Continued

NEW YORK-continued
Endicott
Endicott Trust Co.
Union Trust Co.
Evans Mills
Peoples Bank
Farmingdale
Bank of Farmingdale
Floral Park
Floral Park Bank & Trust Co.
Forrest Hills (See New York)
Fredonia
Citizens Trust Co.
Garden City
Garden City Bank & Trust Co.
Geneva
Geneva Trust Co.
Gloversville
Trust Co. of Fulton County
Great Neck
Bank of Great Neck
Hamburg
Peoples Bank
Hammondsport.... Bank of Hammondsport
Hicksville
Bank of Hicks ville
Ithaca
Tompkins County Trust Co.
Jamestown
Bank of Jamestown
Johnson City
Workers Trust Co.
Katonah
Northern Westchester Bank
Kingston
Kingston Trust Co.
Lackawanna
American Bank
Lindenhurst
Lindenhurst Bank
Little Falls
Herkimer County Trust Co.
Locke
Citizens Bank
Locust Valley
Matinecock Bank
Lowville
Lewis County Trust Co.
Malone
Peoples Trust Co.
Massena
Massena Banking & Trust Co.
May ville
State Bank of May ville
Middletown
Orange County Trust Co.
Millbrook
Bank of Millbrook
Mineola
Nassau County Trust Co.
Mount Vernon
Fleetwood Bank
Mount Vernon Trust Co.
New York
Amalgamated Bank
Bankers Trust Co.
Bank of the Manhattan Co.
Bank of New York
Bank of Yorktown
Bronx County Trust Co.
Brooklyn Trust Co.
Central Hanover Bank & Trust
Co.
Chemical Bank & Trust Co.
City Bank-Farmers Trust Co.
Clinton Trust Co.
Colonial Trust Co.
Continental Bank & Trust Co.
Corn Exchange Bank Trust Co.
Federation Bank & Trust Co.
Fifth Avenue Bank
Fulton Trust Co.
Guaranty Trust Co.
Irving Trust Co.
Lawyers Trust Co.
Manufacturers Trust Co.
Marine Midland Trust Co.
Merchants Bank
New York Trust Co.
Pan American Trust Co.
Pennsylvania Exchange Bank
Schroder Trust Co.
Trade Bank & Trust Co.
United States Trust Co.
Niagara Falls
Power City Trust Co.
North Collins
Bank of North Collins
Nyack
Nyack Bank & Trust Co.
Ogdensburg
Ogdensburg Trust Co.
Olean
Olean Trust Co.
Oneida
Madison County Trust & Deposit Co.
Ontario
State Bank of Ontario
Orchard Park
Bank of Orchard Park
Oriskany Falls
First Trust & Deposit Co.
Ossining
Ossining Trust Co
Patchogue
Patchogue Citizens Bank &
Trust Co.
Pearl River
State Bank of Pearl River
Perry
Citizens Bank
Port Chester
Mutual Trust Co. of Westchester County
Rochester
Central Trust Co.
Lincoln-Alliance Bank & Trust
Co.
Rome
Rome Trust Co.
Sag Harbor
Peconic Bank

DISTRICT NO. 2—Continued
NEW YORK—continued
Salamanca
Salamanca Trust Co.
Saratoga Springs .. .Adirondack Trust Co.
Sayville
Oystermen's Bank & Trust Co.
Schenectady
Schenectady Trust Co.
Sea Cliff
State Bank of Sea Cliff
Smithtown Branch.Bank of Smithtown
Spring Valley
Ramapo Trust Co.
Stony Brook
Bank of Suffolk County
Syracuse
First Trust & Deposit Co.
Syracuse Trust Co.
Tarry town
Washington Irving Trust Co.
Utica
First Bank & Trust Co.
Warsaw
Wyoming County Bank & Trust
Co.
Watertown
Northern New York Trust Co.
Westbury
Bank of Westbury Trust Co.
Westhampton
Beach
Seaside Bank
West New Brighton. West New Brighton Bank
White Plains
Citizens Bank
County Trust Co.
DISTRICT NO. 3 (69 banks)
DELAWARE (4 banks)
Wilmington..
.. .Equitable Trust Co.
Industrial Trust Co.
Security Trust Co.
Wilmington Trust Co.
NEW JERSEYi (7 banks)
Burlington
Burlington City Loan & Trust
Co.
Camden
Camden Trust Co.
Egg Harbor City... Egg Harbor City Trust Co.
Hightstown
Hightstown Trust Co.
Princeton
Princeton Bank & Trust Co.
Riverside
Riverside Trust Co.
Swedesboro
Swedesboro Trust Co.
PENNSYLVANIAi (58 banks)
Allentown
Liberty Bank & Trust Co.
Bloomsburg
Bloomsburg Bank-Columbia
Trust Co.
Carlisle
Carlisle Trust Co.
Chester
Chester-Cambridge Bank &
Trust Co.
Clearfield
Clearfield Trust Co.
Danville
Montour County Trust Co.
Du Bois
Union Banking & Trust Co.
Easton
Easton Trust Co.
East Petersburg ... .East Petersburg State Bank
Egypt
Farmers Bank
Harrisburg
Central Trust Co.
Dauphin Deposit Trust Co.
Hazleton
Markle Banking & Trust Co.
Peoples Savings & Trust Co.
Traders Bank & Trust Co.
Honesdale
Wayne County Savings Bank
Houtzdale
Houtzdale Trust Co.
Huntingdon
Grange Trust Co.
Jenkintown
Jenkintown Bank & Trust Co.
Lancaster
Farmers Bank & Trust Co.
Northern Bank & Trust Co.
Lemoyne
Lemoyne Trust Co.
Lewistown
Lewistown Trust Co.
Littlestown
Littlestown State Bank
Lock Haven
Lock Haven Trust Co.
Lykens
Miners Bank & Trust Co.
Mahanoy City
Merchants Banking Trust Co.
Middletown
Citizens Bank & Trust Co.
Mount Carmel
Liberty State Bank & Trust Co.
Myerstown
Myerstown Trust Co.
Nanticoke
Peoples Bank
New Oxford
Farmers & Merchants Bank
Newtown
Newtown Title & Trust Co.
Norristown
Montgomery Trust Co.
Norristown-Penn Trust Co.
Orrstown
Orrstown Bank
Paoli
PaoliBank
Paradise
State Bank of Paradise

Exclusive of part of State located in another district.

FEDERAL RESERVE SYSTEM
DISTRICT NO. 3-Continued
PENNSYLVANIA—continued
Philadelphia
. Fidelity-Philadelphia Trust Co.
First Trust Co.
Gimbel Bros. Bank & Trust Co.
Girard Trust Co.
Ninth Bank & Trust Co.
Pennsylvania Co. for Insurances
on Lives and
Granting
Annuities
Provident Trust Co.
Prospect Park
.Interboro Bank & Trust Co.
Quakertown
.Quakertown Trust Co.
Reading
. Reading Trust Co.
Schnecksville
Schnecksville State Bank
Schuylkill Haven Schuylkill Haven Trust Co.
.Steelton Bank & Trust Co.
Steelton."
. Peoples Trust Co.
Tamaqua
.Temple State Bank
Temple
. Wilkes-Barre Deposit & Savings
Wilkes-Barre
Bank
Williamsport
. West Branch Bank & Trust Co.
Wyomissing
. Peoples Trust Co.
York
. Guardian Trust Co.
York Trust Co.
DISTRICT NO. 4 (158 banks)
KENTUCKY 1 (7 banks)
Catlettsburg..
Kentucky-Farmers Bank
Covington ...
Peoples-Liberty Bank & Trust
Co.
Lexington
Bank of Commerce
Security Trust Co.
Paris
Bourbon-Agricultural Bank &
Trust Co.
Peoples Deposit Bank & Trust
Co.
Richmond.
State Bank & Trust Co.
OHIO (121 banks)
Firestone Park Trust & Savings
Bank
First-Central Trust Co.
Alliance
Mount Union Bank
Antwerp
Antwerp Exchange Bank
Apple Creek
Apple Creek Banking Co.
Archbold
Peoples State Bank Co.
Arlington
Farmers & Merchants Bank Co.
Ashland
Ashland Bank & Savings Co.
Bellevue
Union Bank & Savings Co.
Bellville
Farmers Bank
Bowling Green . . . Bank of Wood County Co.
Brecksville
. . .Brecksville Bank Co.
Canal Wincheste] Peoples Bank Co.
Canton
. . First Trust & Savings Ban k
Geo. D. Harter Bank
Peoples Bank
Castalia
. . Castalia Banking Co.
Celina
.. Commercial Bank Co.
Christiansburg. ... Farmers & Merchants Bank Co.
Cincinnati
... Central Trust Co.
Fifth-Third Union Trust Co.
Peoples Bank & Savings Co.
Provident Savings Bank &
Trust Co.
Southern Ohio Savings Bank
& Trust Co.
Western Bank & Trust Co.
Cleveland...
.. Cleveland Trust Co.
Lorain Street Bank
Union Bank of Commerce Co.
.. .Union Banking Co.
Columbiana.
.. Fifth Avenue Savings Bank Co.
Columbus...
. .Citizens Banking & Savings Co.
Conneaut....
Conneaut Banking & Trust Co.
. .. Cortland Savings & Banking
Cortland
Co.
Coshocton. .
.. . Peoples Bank & Trust Co.
Crestline
. . Farmers & Citizens State Bank
Croton
. .Croton Bank Co.
.. .Commercial & Savings Bank
Danville
Co.
Delphos
.. Commercial Bank
Peoples Bank
Akron. .

DISTRICT NO. 4-Continued
OHIO—continued
Delta
Peoples Savings Bank Co.
East Liverpool
Potters Bank & Trust Co.
Elyria
Elyria Savings & Trust Co.
Savings Deposit Bank & Trust
Co.
Findlay
Ohio Bank & Savings Co.
Fort Recovery
Fort Recovery Banking Co.
Freeport
Freeport State Bank
Geneva
Geneva Savings & Trust Co.
Gibsonburg
Home Banking Co.
Gnadenhutten
Gnadenhutten Bank
Hillsboro
Hillsboro Bank & Savings Co.
Hubbard
Hubbard Banking Co.
Kipton
Kipton Bank Co.
Leesburg
Citizens Bank & Savings Co.
Lodi
Lodi State Bank
Lorain
Central Bank Co.
City Bank Co.
Lorain Banking Co.
Lyons
Farmers State Bank
Madison
Citizens Bank
Mansfield
Farmers Savings & Trust Co.
Richland Trust Co.
Marblehead
Marblehead Bank Co.
Marengo
Marengo Banking Co.
Martins Ferry
Peoples Savings Bank Co.
Mason
First-Mason Bank
Massillon
Ohio-Merchants Trust Co.
Maumee
State Savings Bank Co.
Middlepoint
Middlepoint Banking Co.
Middletown
First American Bank & Trust
Co.
Minerva
Minerva Banking Co.
Minerva Savings & Bank Co.
Minster
Minster State Bank
Monroeville
Farmers & Citizens Banking Co.
Mount Blanchard. .Citizens Bank
Mount Gilead
Peoples Savings Bank Co.
Mount Sterling
Sterling State Bank
Mount Vernon
Knox County Savings Bank
Napoleon.
Community Bank
Newark
Licking County Bank
Newark Trust Co.
New Knqxville
Peoples Savings Bank
New Lexington
Perry County Bank
New Philadelphia. .Ohio Sayings & Trust Co.
Northfield
Macedonia-North field Banking
Co.
Norwalk
Huron County Banking Co.
Norwood
Norwood-Hyde Park Bank <fc
Trust Co.
Oak Harbor
Oak Harbor State Bank Co.
Oberlin
Oberlin Savings Bank Co.
Orrville
Orrville Savings Bank
Pomeroy
Farmers Bank & Savings Co.
Ravenna
First Savings Bank
Reading
Reading Bank
Rich wood
Rich wood Banking Co.
Rittman
Rittman Savings Bank
Russellville
Bank of Russellville
St. Bernard
Citizens Bank
St. Marys
Home Banking Co.
Sandusky
Citizens Banking Co.
Western Security Bank
Shelby
Citizens Bank
Shiloh
Shiloh Savings Bank Co.
Shreve
Farmers Bank
Silverton
Silverton Bank
Strasburg
Citizens-State Bank
Sylvania
Sylvania Savings Bank Co.
Toledo
Commerce Guardian Bank
Morris Plan Bank
Ohio Citizens Trust Co.
Toledo Trust Co.
Utica
Utica Savings Bank Co.
Vandalia
Vandalia State Bank
Van Wert
Peoples Savings Bank
Wakeman.... r
Wakeman Bank Co.
Waterville
Waterville State Savings Bank
Wellington
First Wellington Bank
West Carroll ton
West Carrollton Bank
Wood ville
State Savings Bank
Wooster
Commercial Banking & Trust
Co.
Yellow Springs
Miami Deposit Bank Co.

1
Exclusive of part of State located in another district.

ANNUAL REPORT OF BOARD OF GOVERNORS

DISTRICT NO. 4—Continued
OHIO—continued
Youngstown
City Trust & Savings Bank
Dollar Savings & Trust Co.
PENNSYLVANIA* (27 banks)
Aliquippa
Woodlawn Trust Co.
Ambridge
Economy Bank
Beaver
Beaver Trust Co.
Dormont
Dormont Savings & Trust Co.
Elizabeth
Bank of Elizabeth
Erie
Security-Peoples Trust Co.
Homestead
Monongahela Trust Co.
Linesville
Farmers & Merchants Bank
McKeesport
Peoples City Bank
Meadville
Crawford County Trust Co.
New Brighton
Beaver County Trust Co.
New Castle
Lawrence Savings & Trust Co.
Pittsburgh
Allegheny Trust Co.
Allegheny Valley Bank
Bank of Ohio Valley
Colonial Trust Co.
Commonwealth Trust Co.
Homewood Bank
Iron & Glass Dollar Savings
Bank of Birmingham
Peoples-Pittsburgh Trust Co.
Potter Title & Trust Co.
St. Clair Deposit Bank
Union Trust Co.
Somerset
Somerset Trust Co.
Turtle Creek
Turtle Creek Bank & Trust Co.
Warren
Warren Bank & Trust Co.
Windber
Windber Trust Co.
WEST VIRGINIA* (3 banks)
Sistersville
First-Tyler Bank & Trust Co.
Wheeling
Security Trust Co.
Wheeling Dollar Savings &
Trust Co.
DISTRICT NO. 5 (95 banks)
DISTRICT OF COLUMBIA (6 banks)
Washington
American Security & Trust Co.
City Bank
National Savings & Trust Co.
Security Savings & Commercial
Bank
Union Trust Co.
Washington Loan & Trust Co.
MARYLAND (10 banks)
Baltimore Commercial Bank
Calvert Bank
Fidelity Trust Co.
Maryland Trust Co.
Union Trust Co. of Maryland
Cambridge
County Trust Co. of Maryland
Ellicott City
Commercial & Farmers Bank
Forest Hill
Forest Hill State Bank
Hagerstown
Hagerstown Trust Co.
Salisbury
Farmers & Merchants Bank
Baltimore

NORTH
Charlotte
Concord
Edenton
Marshall
Tryon
Wadesboro
Washington
Wilmington

CAROLINA (10 banks)
American Trust Co.
Citizens Bank & Trust Co.
Bank of Edenton
Citizens Bartk
Tryon Bank & Trust Co.
Bank of Wadesboro
Bank of Washington
Peoples .Savings Bank & Trust
Co.
Wilmington Savings & Trust
Co.
Wachovia Bank & Trust Co.

DISTRICT NO. 5—Continued
SOUTH CAROLINA—continued
Charleston
... Carolina Savings Bank
Chester
... Commercial Bank
Harts ville
...Bank of Hartsville
VIRGINIA (46 banks)
Abingdon
Farmers Exchange Bank
Alberta
Bank of Alberta
Amelia
Union Bank & Trust Co.
Amherst
Farmers & Bank of Amherst
Blacksburg
Farmers & Merchants Bank
Blackstone
Citizens Bank & Trust Co.
Bridgewater
Planters Bank
Chase City
Peoples Bank & Trust Co.
Christiansburg
Bank of Christiansburg
Edinburg
Farmers Bank
Farm ville
Planters Bank & Trust Co.
Front Royal
Bank of Warren
Glade Spring
Bank of Glade Spring
Halifax
Bank of Halifax
Kenbridge
Bank of Lunenburg
Lacrosse
Bank of Lacrosse
Lawrenceville.
Farmers & Merchants Bank
Lynchburg
Lynchburg Trust & Savings
Bank
Mathews
Farmers Bank
Montross
Peoples Bank
Mount Jackson
Peoples Bank
Odd
Citizens Bank of Poquoson
Petersburg
Petersburg Savings & American
Trust Co.
Phoebus
Bank of Phoebus
Portsmouth
Merchants & Farmers Bank
Powhatan
Bank of Powhatan
Remington
State Bank of Remington
Rich Creek
Farmers & Merchants Bank
Richmond
Bank of Commerce & Trusts
Mechanics & Merchants Bank
Southern Bank & Trust Co.
State-Planters Bank & Trust
Co.
Rural Retreat
Peoples Bank
Shawsville
Bank of Shawsville
Smithfield
Bank of Smithfield
Merchants & Farmers Bank
South Boston.:
South Boston Bank & Trust Co.
South Hill.
Citizens Bank
Stanardsville
Bank of Greene
Suffolk
American Bank & Trust Co.
Farmers Bank of Nansemond
Tazewell
Farmers Bank of Clinch Valley
Waynesboro
Citizens-Waynesboro Bank &
Trust Co.
Williamsburg
Peninsula Bank & Trust Co.
Winchester
Union Bank
Woodstock
Shenandoah County Bank &
Trust Co.
WEST VIRGINIAi (18 banks)
Belington
Belington Bank
Berwind
Berwind Bank
Buffalo
Buffalo Bank
Charleston
Kanawha Banking & Trust Co.
Kanawha Valley Bank
Hurricane
Putnam County Bank
Lewisburg
Greenbrier Valley Bank
Martinsburg
Peoples Trust Co.
Parsons
Tucker County Bank
Petersburg
Potomac Valley Bank
Quinwood
Bank of Quinwood
Rainelle
Bank of Rainelle
Romney
Bank of Romney
St. Albans
Bank of St. Albans
St. Marys
Pleasants County Bank
Spencer
Traders Trust & Banking Co.
Summersville
Farmers & Merchants Bank
Union
.Bank of Monroe

DISTRICT NO. 6 (54 banks)
ALABAMA (17 banks)
SOUTH CAROLINA (5 banks)
Aliceyille
Aliceyille Bank & Trust Co.
Bishopville
Peoples Bank
Birmingham
Birmingham Trust & Savings
Camden
Commercial Bank
Co.
Digitized for 1FRASER
Exclusive of4 part of State located in another district.

Winston-Salem

FEDERAL RESERVE SYSTEM
DISTRICT NO. 6—Continued
ALABAMA—continued

Clan ton
Clayton
Columbiana
Cullman
Dothan
Eutaw
Guin
Marion Junction
Montgomery
Oneonta
Pine Apple
Selma
Thomaston
Winfield
York

Peoples Savings Bank
Bank of Commerce
Columbiana Savings Bank
Parker Bank & Trust Co.
Dothan Bank & Trust Co.
Merchants & Farmers Bank of
Greene County
Marion County Banking Co.
Marion Junction State Bank
Union Bank & Trust Co.
Citizens Bank
Bank of Pine Apple
Peoples Bank & Trust Co.
Planters Bank & Trust Co.
Winfield State Bank
Bank of York

FLORIDA (5 banks)
Manatee River Bank & Trust
Co.
Fort Lauderdale... Brqward Bank & Trust Co.
Marianna
Citizens State Bank
Ocala
Commercial Bank & Trust Co.
St. Petersburg
Union Trust Co.
Bradenton

GEORGIA (18 banks)
Bank of Adairsville
Trust Co. of Georgia
Georgia Railroad Bank & Trust
Co.
Bainbridge
Citizens Bank & Trust Co.
Blackshear
Blackshear Bank
Brunswick
Brunswick Bank & Trust Co.
Canton
Bank of Canton
Columbus
Columbus Bank & Trust Co.
Merchants & Mechanics Bank
Commerce
Northeastern Banking Co.
Lawrenceville
Brand Banking Co.
Millen
Bank of Millen
Monroe
Farmers Bank
Pelham
Farmers Bank
Savannah
Citizens Bank & Trust Co.
Savannah Bank & Trust Co.
Soperton
Bank of Soperton
Swainsboro
Central Bank

Adairsville
Atlanta
Augusta

LOUISIANA^ (6 banks)
Alexandria
.. Rapides Bank & Trust Co.
Arabi
.. St. Bernard Bank & Trust Co.
.. Lake Charles Bank & Trust Co.
Lake Charles
. .American Bank & Trust Co.
New Orleans
Louisiana Savings Bank &
Trust Co.
..Bank
of Slidell
Slidell. .
Forest
Jackson

Carthage
Chattanooga
Greeneyille
Hartsville
Knoxville
Nashville

MISSISSIPPI (2 banks)
Bank of Forest
Deposit Guaranty Bank &
Trust Co.
TENNESSEE (6 banks)
Citizens Bank & Trust Co.
American Trust & Banking Co.
Greene County Bank
Bank of Hartsville
Commercial Bank & Trust Co.
Commerce Union Bank

DISTRICT NO. 7 (320 banks)
ILLINOIS^ (63 banks)
Argenta
Gerber State Bank
Bloomington
Corn Belt Bank
Peoples Bank
Blue Island
State Bank of Blue Island
Bushnell
Farmers & Merchants State
Bank
Byron
Rock River Community Bank
Camp Grove
Camp Grove State Bank
Chad wick
Farmers State Bank

DISTRICT NO. 7—Continued

ILLINOIS—continued
Amalgamated Trust & Savings
Bank
Drexel State Bank
East Side Trust & Savings Bank
Harris Trust & Savings Bank
Kaspar-American State Bank
Lake Shore Trust & Savings
Bank
Lake View Trust & Savings
Bank
Main State Bank
Metropolitan State Bank
Metropolitan Trust Co.
Northern Trust Co.
Sears-Community State Bank
State Bank of Clearing
Cowden
State Bank of Cowden
Elburn
Kane County Bank & Trust Co.
Eureka
State Bank of Eureka
Evanston
Evanston Trust & Savings
Bank
State Bank & Trust Co.
Freeport
State Bank of Freeport
Fulton
Fulton State Bank
Galesburg
Farmers & Mechanics Bank
Geneva
State Bank of Geneva
Hillsdale
Old Farmers & Merchants State
Bank
Joy
Joy State Bank
Lanark
Exchange State Bank
LaSalle
LaSalle State Bank
Lostant
Farmers State Bank
McHenry
West McHenry State Bank
Metamora
Metamora State Bank
Milford
Citizens State Bank
Momence
Parish Bank & Trust Co.
Morrison
Smith Trust & Savings Bank
Mt. Pulaski
Farmers Bank
Niantic
State Bank of Niantic
Oak Park
Oak Park Trust & Savings Bank
Petersburg
Schirding State Bank
Piper City
State Bank of Piper City
Plymouth
Plymouth State Bank
Riverdale
First Trust & Savings Bank
Rochester
Rochester State Bank
Rock Island
State Bank of Rock Island
Rushville
Rush ville State Bank
Shannon
First State Bank
Shelby ville
Shelby County State Bank
Shelby Loan & Trust Co.
Skokie
Niles Center State Bank
Springfield
Springfield Marine Bank
Thomson
Thomson State Bank
Tolono
Citizens Bank
Walnut
Citizens State Bank
Washington
Danforth Banking Co.
Wenona
First State Bank
Wheaton
Gary-Wheaton Bank
Wheaton Trust & Savings Bank
Wilmette
Wilmette State Bank
Chicago

INDIANAi (53 banks)
Angola
Steuben County State Bank
Auburn
Auburn State Bank
A villa
Community State Bank
Battle Ground
Battle Ground State Bank
Berne
First Bank of Berne
Boswell
Farmers & Merchants Bank
Brazil
Brazil Trust Co.
Brookville
.Peoples Trust Co.
Cambridge City..'. .Wayne Trust Co.
Carthage.
State Bank of Carthage
Columbia City
Citizens State Bank
Farmers Loan & Trust Co.
Connersville
Fayette Bank & Trust Co.
Crawfordsville
Elston Bank & Trust Co.
Darlington
Farmers & Merchants State
Bank
Decatur
First State Bank
Delphi
Union Bank & Trust Co.
Elkhart
First Old State Bank
St. Joseph Valley Bank
Etna Green
Etna Bank
Fairmount
Fairmount State Bank

1
Exclusive of part of State located in another district.

ANNUAL REPORT OF BOARD OF GOVERNORS

DISTRICT NO. 7—Continued
INDIANA-continued
Franklin
Farmers Trust Co.
Gary
Gary State Bank
Gary Trust & Savings Bank
Greencastle
First-Citizens Bank & Trust Co.
Greenfield
Greenfield Banking Co.
Greensburg
Union Trust Co.
Hartford City
Citizens State Bank
Hebron
Citizens Bank
Indianapolis
Fletcher Trust Co.
Jamestown
Citizens State Bank
Kokomo
Union Bank & Trust Co.
Linden
Linden State Bank
Logansport
Farmers & Merchants State
Bank
Marshall
Citizens State Bank
Mohawk
Mohawk State Bank
Monticello
State & Savings Bank
Montpelier
Bank of Montpelier
Muncie
Merchants Trust Co.
Nappanee
State Bank of Nappanee
Oldenburg
Farmers & Merchants State
Bank
Pendleton
Pendleton Banking Co.
Poland
Poland-State Bank
Porter
First State Bank
Roachdale
Roachdale Bank & Trust Co.
South Bend
First Bank & Trust Co.
Sweetser
Farmers State Bank
Tipton
Farmers Loan & Trust Co.
Valparaiso
First State Bank
Van Buren
Farmers Trust Co.
Warren
Exchange Bank
Warsaw
Lake City Bank
West College Corner
(College Corner,
Ohio, P. O.)
Farmers State Bank
IOWA ( 5 banks)
Algona
Iowa State Bank
Security State Bank
Aurelia
First Trust & Savings Bank
Avoca
Avoca State Bank
Blencoe
Blencoe State Bank
Cherokee
Cherokee State Bank
Churdan
First State Bank
Clear Lake
Clear Lake Bank & Trust Co.
Cory don
Cory don State Bank
Davenport
Davenport Bank & Trust Co.
Des Moines
Bankers Trust Co.
Dubuque
American Trust & Savings Bank
Early
.Early Savings Bank
Fairfield
Iowa State Bank & Trust Co.
Fontanelle
State Savings Bank
Forest City
Forest City Bank & Trust Co.
Fort Dodge
The State Bank
Fort Madison
Fort Madison Savings Bank
Gladbrook
State Bank
Glen wood
Glenwood State Bank
Holstein
Holstein State Bank
Ida Grove
Ida County State Bank
Jesup
Farmers State Bank
Lineville
Lineville State Bank
Maquoketa
Jackson State Savings Bank
Mason City
United Home Bank & Trust Co.
Monticello
Monticello State Bank
Moorhead
Moorhead State Bank
Muscatine
Central State Bank
Muscatine Bank & Trust Co.
New Hampton
Security State Bank
Newton
Jasper County Savings Bank
Osage
Home Trust & Savings Bank
Ottumwa
Fidelity Savings Bank
Union Bank & Trust Co.
Riceville
Riceville State Bank
Royal
Home State Bank
Sheldon
Security State Bank
Shenandoah
Security Trust & Savings Bank
Storm Lake
Commercial Trust & Savings
Bank
Security Trust & Savings Bank
Strawberry Point.. .Union Bank & Trust Co.
Templeton
Templeton Savings Bank
Washington
Washington State Bank
Williams
Williams Savings Bank

DISTRICT NO. 7-Continued
MICHIGAN* (130 banks)
.... Adrian State Savings Bank
Adrian...
Commercial Savings Bank
Lenawee County Savings Bank
Albion
... .Commercial & Savings Bank
Algonac
.. .Algonac Sayings Bank
Alpena
... .Alpena Savings Bank
Alto
Farmers State Bank
Ann Arbor.
Ann Arbor Savings & Commercial Bank
State Savings Bank
.. . Armada State Bank
Armada
...Bay City Bank
Bay City
Peoples Commercial & Savings
Bank
Belleville
.... Peoples State Bank
Berrien Spring
Berrien Springs State Bank
Big Rapids
... Big Rapids Savings Bank
Blanchard
.... Blanchard State Bank
Blissfield
.... Blissfield State Bank
Bronson
.... Peoples State Bank
Brown City...
Brown City Savings Bank
Byron Center.
Byron Center State Bank
Caledonia
State Bank of Caledonia
Capac
.... Capac State Savings Bank
Cass City
.... Cass City State Bank
Pinney State Bank
.... Cass County State Bank
Cassopolis
.... Charlevoix County State Bank
Charlevoix
.. . .Eaton County Savings Bank
Charlotte
.... Chelsea State Bank
Chelsea
Chesaning
Chesaning State Bank
Clare
.... Citizens State Bank
Clarkston
.... Clarkston State Bank
Coloma
State Bank of Coloma
Coopersville.. ... .Coopersville State Bank
Corunna
.... Old Corunna State Bank
Croswell
State Bank of Croswell
Davison
.... Davison State Bank
Detroit Bank
Detroit
Industrial Morris Plan Bank
United Savings Bank
Dexter
Dexter Savings Bank
Dundee
.... Monroe County Bank
Durand
.... Shiawassee County Bank
Ecorse
Ecorse Savings Bank
Farmington...
Farmington State Bank
Fennville
Old State Bank
Fenton
State Savings Bank
Flint
Citizens Commercial & Savings
Bank
Genesee County Savings Bank
Merchants & Mechanics Bank
Fountain
Fountain State Bank
Frankenmuth.
Frankenmuth State Bank
Frankfort
State Savings Bank
Fremont
Fremont State Bank
Old State Bank
Gagetown
State Savings Bank
Gay lord
Gaylord State Savings Bank
Grand Haven.
Grand Haven State Bank
Peoples Savings Bank
Grand Rapids.
Old Kent Bank
Grandville
Community State Bank
Grant
Grant State Bank
Greenville
Commercial State Savings Bank
First State Bank
Grosse Pointe Bank
Grosse Pointe.
State Bank
Harbor Beach.
Harbor Spring!
Emmet County State Bank
Hillsdale
Hillsdale State Savings Bank
Holland
Holland State Bank
Peoples State Bank
Holly
First State & Savings Bank
First State & Savings Bank
Howell
Imlay City State Bank
Imlay City
Jackson
Jackson City Bank & Trust Co.
Jonesville
Grosvenor Savings Bank
Kingston State Bank
Kingston
Bank of Lakeview
Lakeyiew
American State Savings Bank
Lansing
Bank of Lansing
Lapeer Savings Bank
Home State Bank
Lawrence....
State Savings Bank
Lowell

1
Exclusive of part of State located in another district.

FEDERAL RESERVE SYSTEM
DISTRICT NO. 7—Continued
MICHIGAN—continued
Ludington
Ludington State Bank
Manchester
Peoples Bank
Union Savings Bank
Manistee
Manistee County Savings Bank
Marcellus
G. W. Jones Exchange Bank
Mason
Farmers Bank
Merrill
Farmers & Merchants State
Bank
Midland
Chemical State Savings Bank
Milan
Peoples State Bank
Milford
Oakland County State Bank
Montague
Farmers State Bank
Morrice
Morrice State Bank
Mount Clemens . . . . Mount Clemens Savings Bank
Mount Pleasant
Exchange Savings Bank
Isabella County State Bank
New Baltimore
Citizens State Savings Bank
New Boston
Peoples State Bank
New Haven
New Haven Savings Bank
North Branch
Pioneer Bank
Onsted
Onsted State Bank
Oxford
Oxford Savings Bank
Petoskey
First State Bank
Pigeon
Pigeon State Bank
Pinconning
Pinconning State Bank
Plymouth
PlymouthUnited Savings Bank
Richmond
Macomb County Savings Bank
River Rouge
River Rouge Savings Bank
Romeo
Romeo Savings Bank
St. Charles
St. Charles State Bank
St. Clair
Commercial & Savings Bank
St. Johns
State Bank of St. Johns
Saugatuck
Fruit Growers State Bank
Sebewaing
Farmers & Merchants State
Bank
South Haven
Citizens State Bank
First State Bank
Sparta
Spirta State Bank
Spring Lake
Spring Lake State Bank
Springport
Springport State Savings Bank
Traverse City
First-Peoples State Bank
Traverse City State Bank
Trenton
Trenton State Bank
Vassar
State Bank of Vassar
Wayne
Wayne State Bank
West Branch
State Savings Bank
Whitehall
State Bank of Whitehall
Williamston
Peoples State Bank
Wyandotte
Wyandotte Savings Bank
Yale
Yale State Bank
Zeeland
Zeeland State Bank
WISCONSIN 1 (29 banks)
.Fidelity Savings Bank
. Beloit State Bank
. Bank of Burlington
,. Commercial Bank
. Tobacco Exchange Bank
.Union Bank & Trust Co.
Peoples Trust & Savings Bank
.Green Lake State Bank
.Bank of Kaukauna
. State Bank of Kewaunee
.Manitowoc Savings Bank
.Markesan State Bank
. State Bank of Mayville
.American State Bank
Marshall & Ilsley Bank
Northern Bank
West Side Bank
Platteville
. State Bank of Platteville
Sauk City
. Farmers & Citizens Bank
Sheboygan
. Bank of Sheboygan
State Bank
South Milwaukee. . Citizens
Home State Bank
Sturgeon Bay
. Bank of Sturgeon Bay
Viroqua
. State Bank of Viroqua
Waupaca
.Farmers State Bank
Waupun
. State Bank of Waupun
Wausau
. Citizens State Bank
. .Milwaukee County Bank
West Allis
. .First Citizens State Bank
Whitewater

Antigo
Beloit
Burlington
Chilton
Edgerton
Evansville
Green Bay
Green Lake
Kaukauna
Kewaunee
Manitowoc
Markesan
Mayville
Milwaukee

DISTRICT-NO. 8 (97 banks)
ARKANSAS (7 banks)
Batesville
Citizens Bank & Trust Co.
Blytheville
Farmers Bank & Trust Co.
Fordyce
Fordyce Bank & Trust Co.
Little Rock
W. B. Worthen Co., Bankers
Russelville
Bank of Russelville
Peoples Exchange Bank
Waldron
Bank of Waldron
Breese
Cairo
Dupo
East St. Louis
Edwardsville
Effingham
Eldorado
Hillsboro
Hoyleton
Jacksonville
Johnston City
Keyesport
Litchfield
Mounds
Olmsted
Red Bud
Rich view
Ridgway
St. Peter

ILLINOIS 1 (19 banks)
State Bank of Breese
First Bank & Trust Co.
Dupo State Savings Bank
Union Trust Co.
Bank of Edwardsville
Efhngham State Bank
C. P. Burnett & Sons, Bankers
Montgomery County Bank
Hoyleton State & Savings Bank
Elliott State Bank
Johnston City State Bank
State Bank of Keyesport
Litchfield Bank & Trust Co.
First State Bank
First State Bank
First State Bank
Rich view State Bank
Gallatin County Bank
First State Bank

Bloomfield
Charlestown
Oaktown
Orleans
Richland
Sandborn
Scottsburg

INDIANA 1 (7 banks)
Bloomfield State Bank
First Bank of Charlestown
Oaktown Bank
Bank of Orleans
Lake State Bank
Sandborn Banking Co.
Scott County State Bank

KENTUCKY* (10 banks)
Bardstown
Farmers Bank & Trust Co.
Campbellsville
Citizens Bank & Trust Co.
Clay
Farmers Bank
Danville
Boyle Bank & Trust Co.
Hartford
Citizens Bank
Hopkinsville
Planters Bank & Trust Co.
Louisville
Kentucky Title Trust Co.
Lincoln Bank & Trust Co.
Louisville Trust Co.
Owensboro
First-Owensboro Bank & Trust
Co.
MISSOURI 1 (54 banks)
Bank of Maxville
Farmers & Traders Bank
Camden County Bank
Carroll County Trust Co.
St. Louis County Bank
Union State Bank
Bank of Crane
Peoples Bank
United Bank
Farmers & Merchants Bank
Callaway Bank
Glasgow Savings Bank
Farmers & Merchants Bank &
Trust Co.
Keytesville
Bank of Keytesville
Lancaster
Schuyler County State Bank
Lebanon
State Bank of Lebanon
State Savings Bank
Luxemburg
Lemay Bank & Trust Co.
Maplewood
Maplewood Bank & Trust Co.
Peoples State Bank
Marshall
Wood & Huston Bank
Memphis
Bank of Memphis
Moberly
City Bank & Trust Co.
Mechanics Bank & Trust Co.
Monroe City
Monroe City Bank
Normandy
Normandy State Bank
Pine Lawn
Pine Lawn Bank & Trust Co.

Arnold
California
Camdenton
Carrollton
Clayton
Clinton
Crane
Cuba
Farmington
Fenton
Fulton
Glasgow
Hannibal

Exclusive of part of State located in another district.

ANNUAL REPORT OF BOARD OF GOVERNORS

DISTRICT NO. 8—Continued
MISSOURI-continued
Sedalia
Sedalia Bank & Trust Co.
St. Louis
Baden Bank
Bremen Bank & Trust Co.
Cass Bank & Trust Co.
Chippewa Trust Co.
Easton-Taylor Trust Co.
Jefferson Bank & Trust Co.
Jefferson-Gravois Bank
Lindell Trust Co.
Manchester Bank
Manufacturers Bank & Trust
Co.
Mercantile-Commerce Bank &
Trust Co.
Mississippi Valley Trust Co.
Mound City Trust Co.
North St. Louis Trust Co.
Plaza Bank
Southern Commercial & Savings Bank
Southwest Bank
Tower Grove Bank & Trust Co.
United Bank & Trust Co.
St. Louis County.. .Gravois Bank
Springfield
Southern Missouri Trust Co.
Sweet Springs
Chemical Bank
Vandalia
Vandalia State Bank
Versailles
Bank of Versailles
Washington
Franklin County Bank
Webster Groves
Webster Groves Trust Co.
DISTRICT NO. 9 (88 banks)
MICHIGAN* (14 banks)
Bark River
Bark River State Bank
Escanaba
State Savings Bank
Ewen
State Bank of Ewen
Gladstone
Gladstone State Savings Bank
Iron Mountain
Commercial Bank
Iron River
Miners' State Bank
L'Anse
Commercial Bank
Manistique
State Savings Bank
Menominee
Commercial Bank
Newberry
Newberry State Bank
Ontonagon
Citizens State Bank
Sault Ste. Marie... .Central Savings Bank
Sault Savings Bank
South Range
South Range State Bank
MINNESOTA (21 banks)
Caledonia
Sprague State Bank
Cannon Falls
Security State Bank
Chatfield
Root River State Bank
Clinton
Clinton State Bank
Hawley
State Bank of Hawley
Houston
Security State Bank
Lakefield
Farmers State Bank
Madelia
Farmers State Bank
Minneapolis
Fidelity State Bank
Owatonna
Security Bank & Trust Co.
Plainview
Peoples State Bank
Rockville
State Bank of Rockville
Rushmore
First State Bank
St. Cloud
Zapp State Bank
Sleepy Eye
State Bank of Sleepy Eye
Springfield
Farmers & Merchants State
Bank
State Bank of Springfield
Wadena
Wadena County State Bank
Welcome
Welcome State Bank
West Concord
Farmers State Bank
Winona
Merchants Bank
MONTANA (25 banks)
Anaconda
Daly Bank & Trust Co.
Belt
Belt Valley Bank
Big Timber
Citizens Bank & Trust Co.
Billings
Security Trust & Savings Bank
Bozeman
Gallatin Trust & Savings Bank
Security Bank & Trust Co.
Broadus
Powder River County Bank
Butte
Metals Bank & Trust Co.
Cascade
Stockmens Bank

DISTRICT NO. 9—Continued
MONTANA—continued

Choteau
Columbus
Deer Lodge
Denton
Fromberg
Glasgow
Great Falls
Helena
Laurel
Libby
Richey
Ronan
Terry
Townsend
Victor
Worden

Citizens State Bank
Yellowstone Bank
Deer Lodge Bank & Trust Co.
Farmers State Bank
Clarks Fork Valley Bank
Farmers-Stockgrowers Bank
Montana Bank & Trust Co.
Union Bank & Trust Co.
Yellowstone Bank
First State Bank
First State Bank
Ronan State Bank
State Bank of Terry
State Bank of Townsend
Farmers State Bank
Farmers State Bank

SOUTH
Alcester
Alpena
Arlington
Belle Fourche
Belvidere
Buffalo
Custer
Faith
Flandreau
Freeman
Fulton
Huron
Madison
Miller
Mitchell
Mobridge
Presho
Sioux Falls
Sturgis
Toronto
Vermillion
Webster
Woonsocket

DAKOTA (23 banks)
State Bank of Alcester
Bank of Alpena
Citizens State Bank
Bank of Belle Fourche
Belvidere State Bank
First State Bank
Custer County Bank
Farmers State Bank
Farmers State Bank
Merchants State Bank
Fulton State Bank
Farmers & Merchants Bank
Security Bank & Trust Co.
Hand County State Bank
Commercial Trust & Savings
Bank
Citizens Bank
Farmers & Merchants State
Bank
Union Savings Bank
Bear Butte Valley Bank
Bank of Toronto
Citizens Bank
Security Bank
Sanborn County Bank

WISCONSIN1 (5 banks)
Boyceville
Bank of Boyceville
Glenwood City
First State Bank
Menomonie
Kraft State Bank
Rhinelander
Merchants State Bank
Tomahawk
Bradley Bank
DISTRICT NO. 10 (86 banks)
COLORADO (15 banks)
Brighton
Brighton State Bank
Craig
Moffatt County State Bank
Del Norte
Rio Grande County Bank
Delta
Colorado Bank & Trust Co.
Denver
Central Savings Bank & Trust
Co.
International Trust Co.
Eaton
Eaton Bank
Fort Morgan
Farmers State Bank
Grand Junction .... United States Bank
Gunnison
Gunnison Bank & Trust Co.
Haxtun
Haxtun State Bank
La Junta
Colorado Savings & Trust Co.
Sterling
Commercial Savings Bank
Security State Bank
Yuma
Farmers State Bank
Abilene
Augusta
Caldwell
Eldorado
Goodland
Great Bend
Hiawatha
Hoxie
Hutchinson
Kansas City

1
Exclusive of part of State located in another district.

KANSAS (25 banks)
Citizens Bank
Prairie State Bank
Stock Exchange Bank
Citizens State Bank
Goodland State Bank
American State Bank
Morrill & Janes Bank
Hoxie State Bank
Hutchinson State Bank
Riverview State Bank

FEDERAL RESERVE SYSTEM
DISTRICT NO. 10—Continued
KANSAS—continued
Kinsley
Kinsley Bank
Liberal
Citizens State Bank
Luray
Peoples State Bank
Ness City
First State Bank
Oakley
Farmers State Bank
Osage City
Citizens State Bank
Pratt
Peoples Bank
Rossville
Peoples State Bank
Sedan
Sedan State Bank
St. Marys
St. Marys State Bank
Sylvan Grove
Sylvan State Bank
Tonganoxie
First State Bank
Topeka
Fidelity Savings State Bank
Wakefield
Farmers & Merchants State
Bank
Winfield
The State Bank
MISSOURI* (11 banks)
Gentry County Bank
Bank of Carthage
Bank of Craig
Commerce Trust Co.
Mercantile Home Bank & Trust
Co.
Merchants Bank
King City
First State Bank
Lamar
Barton County State Bank
Rich Hill
Security Bank
St. Joseph
Empire Trust Co.
South St. Joseph...First St. Joseph Stock Yards
Bank

Albany
Carthage
Craig
Kansas City

Alma
Bancroft
Blair
Bluehill
Chappell
Hartington
Lexington
North Platte
Pawnee City
Scribner
Stromsburg
Valley
Wahoo
Wallace

NEBRASKA (14 banks)
Harlan County Bank
Citizens Bank
Washington County Bank
Commercial Bank
Deuel County State Bank
Bank of Hartington
Farmers State Bank
McDonald State Bank
Citizens State Bank
Farmers State Bank
Stromsburg Bank
Bank of Valley
Wahoo State Bank
Farmers State Bank

NEW MEXICO1 (2 banks)
Citizens Bank
First State Bank
OKLAHOMA1 (10 banks)
Ada
Oklahoma State Bank
Canton
Bank of Canton
Eldorado
First State Bank
Fairview
Fairview State Bank
Garber
Bank of Garber
Medford
Grant County Bank
Okarche
First Bank of Okarche
Purcell
First State Bank
Stroud
First State Bank
Woodward
Bank of Woodward
Aztec
Taos

WYOMING (9 banks)
Evanston
Stockgrowers Bank
Lusk
Lusk State Bank
Mountain View
Uinta County State Bank
Newcastle
First State Bank
Saratoga
Saratoga State Bank
Sundance
Sundance State Bank
Wheatland
State Bank of Wheatland
Stock Growers Bank
Worland
Farmers State Bank
DISTRICT NO. 11 (86 banks)
ARIZONAi (1 bank)
Tucson
Southern Arizona Bank & Trust
Co.

DISTRICT NO. 11—Continued
LOUISIANA^ (2 banks)
Minden
Minden Bank & Trust Co.
Shreveport
Continental-American Bank &
Trust Co.
NEW MEXICO1 (3 banks)
Carlsbad
American Bank
Deming
Mimbres Valley Bank
Logan
McFarland Bros. Bank
Atoka

OKLAHOMA1 (1 bank)
Atoka State Bank

TEXAS (79 banks)
First State Bank
First State Bank
Bay City Bank & Trust Co.
Security State Bank & Trust
Co.
Beeville
State Bank & Trust Co.
Bremond
First State Bank
Brenham
Washington County State Bank
Brownfield
Brownfield State Bank
Bryan
First State Bank & Trust Co.
Celina
First State Bank
Clarendon
Farmers State Bank
Cleveland
Farmers State Bank
Clifton
Farmers State Bank
Crosby
Crosby State Bank
Crowell
Crowell State Bank
Cuero
Farmers State Bank & Trust
Co.
Dalhart
Citizens State Bank
Dallas
Liberty State Bank
De Kalb
State Bank of De Kalb
Del Rio
Del Rio Bank & Trust Co.
Dodson
First State Bank
Dumas
First State Bank
East Bernard
Union State Bank
Eden
Eden State Bank
Ferris
Farmers & Merchants State
Bank
Forney
Forney State Bank
Franklin
First State Bank
Gatesville
Guaranty Bank & Trust Co.
Gladewater
First State Bank
Gonzales
Gonzales State Bank
Granger
First State Bank
Hamilton
Hamilton Bank & Trust Co.
Houston
Citizens State Bank
Guardian Trust Co.
Iola
Iola State Bank
Kerrville
First State Bank
Knox City
Citizens State Bank
Kosse
First State Bank
Ladonia
Farmers & Merchants State
Bank
Llano
Moore State Bank
Loraine
First State Bank
Lorenzo
Lorenzo State Bank
Madisonville
Farmers State Bank
Marlin
First State Bank
Matador
First State Bank
Mathis
First State Bank
Maypearl
First State Bank
McAllen
City State Bank & Trust Co.
Monahans
First State Bank
Mount Pleasant
Guaranty Bond State Bank
Muleshoe
Muleshoe State Bank
Pearsall
Security State Bank
Rails
Security State Bank & Trust
Co.
Rankin
First State Bank
Richardson
Citizens State Bank
Robert Lee
Robert Lee State Bank
Roby
Citizens State Bank
Roscoe
Roscoe State Bank
Rusk
Farmers & Merchants State
Bank & Trust Co.
San Marcos
State Bank & Trust Co.
Schertz
Schertz State Bank
Shamrock
Farmers & Merchants State
Bank
Bandera
Bangs
Bay City
Beaumont

Exclusive of part of State located in another district.

ANNUAL REPORT OF BOARD OF GOVERNORS
DISTRICT NO. 11—Continued

TEXAS—continued
Shiro
.. Farmers State Bank
.. Silsbee State Bank
Silsbee
. .Commercial State Bank
Sinton
.. First State Bank
Spearman
.. Spur Security Bank
Spur
Sulphur Springs. .. Sulphur Springs State Bank
..First State Bank
Taft
.. First State Bank
Talpa
.. Thorndale State Bank
Thorndale
.. Guaranty Bond State Bank
Tomball
.. Home State Bank
Trent
.. Wellington State Bank
Wellington
West Columbia.. . .First Capitol State Bank
.. Security Bank & Trust Co.
Wharton
Wharton Bank & Trust Co.
..Winters State Bank
Winters
.. First State Bank
Yorktown
DISTRICT NO. 12 (69 banks)
ARIZONA^ (1 bank)
Buckeye
Buckeye Valley Bank
CALIFORNIA (17 banks)
Placer County Bank
Bank of Carmel
Solano County Bank
Farmers & Merchants Bank
Farmers & Merchants Bank
California Bank
California Trust Co.
Union Bank & Trust Co.
Newman
Bank of Newman
Oakland
Bank of Commerce
Pasadena
Citizens Commercial Trust &
Savings Bank
First Trust & Savings Bank
Monterey County Trust & SavSalinas
ings Bank
San Francisco
American Trust Co.
Wells. Fargo Bank & Union
Trust Co.
San Rafael
Bank of San Rafael
Santa Paula
Citizens State Bank

Auburn
Carmel
Fairfield
Lodi
Long Beach
Los Angeles

Aberdeen
Arco
Boise
Hazelton
Malad City
Orofino
Richfield
1

IDAHO (9 banks)
Bank of Aberdeen
Butte County Bank
First Security Bank of Idaho
Hazelton State Bank
J. N. Ireland & Co., Bankers
Bank of Orofino
First State Bank

DISTRICT NO. 12—Continued

IDAHO—continued
Largilliere Co., Bankers
Twin Falls Bank & Trust Co.
NEVADA (2 banks)
Elko....
...... Nevada Bank of Commerce
Pioche.
Bank of Pioche
OREGON (6 banks)
Bank of Albany
Albany
Beaverton
First Security Bank
Dallas City Bank
Dallas
Halsey State Bank
Halsey
Myrtle Point..
Security Bank
Oakland
E. G. Young & Co. Bank

Soda Springs
Twin Falls

Brigham
Cedar City
Ephraim
Gunnison
Helper
Kaysville
Logan
Nephi
Ogden
Price
Provo
Salina
Salt Lake City.
Spanish Fork
Springville
Vernal

WASHINGTON (14 banks)
.... Almira State Bank
Almira
.... Cashmere Valley Bank
Cashmere
Security State Bank
Coulee City
...Cowlitz Valley Bank
Kelso
...First State .Bank
Lacrosse
Puyallup
.... Citizens State Bank
.... Ridgefield State Bank
Ridgefield
.... Ritzville State Bank
Ritzville
Rockford
... .Farmers & Merchants Bank
Seattle
, .... Seattle Trust & Savings Bank
.... Selah State Bank
Selah
... .Washington Trust Co.
Spokane
.... Farmers State Bank
Uniontown
.... State Bank of Wilbur
Wilbur

Exclusive of part of State located in another district.

UTAH (20 banks)
State Security Bank
Bank of Southern Utah
Bank of Ephraim
Gunnison Valley Bank
Helper State Bank
Barnes Banking Co.
Cache Valley Banking Co.
Commercial Bank
Commercial Security Bank
Carbon Emery Bank
Farmers & Merchants Bank
First State Bank
Tracy Loan & Trust Co.
Utah Savings & Trust Co.
Walker Bank & Trust Co.
Bank of Spanish Fork
Commercial Bank
.... Springville Banking Co.
Bank of Vernal
Uintah State Bank

FEDERAL RESERVE SYSTEM

DESCRIPTION OF FEDERAL RESERVE DISTRICTS
Land area1 Popula(square
tion April
miles)
1, 1940

Federal Reserve district
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.

62,573
52,153
37,023
74,027
152,471
247,778
190,446
195,902
412,304
480,537
386,447
685,438

1—Boston
2—New York
3—Philadelphia
4—Cleveland
5—Richmond
6—Atlanta
7—-Chicago
8—St. Louis
9—Minneapolis
10—Kansas City
11—Dallas
12—San Francisco
Total

8,018,906
17,129,265
7,777,910
11,809,528
12,330,219
12,597,347
19f406,389
10,187,405
5,542,966
7,855,397
7,733,748
11,280,195

2,977,099 131,669,275

FEDERAL RESERVE DISTRICTS
DISTRICT NO. 1—BOSTON
Connecticut (excluding Fairfield County)...
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
DISTRICT NO. 2 - N E W YORK
Connecticut (Fairfield County)
New Jersey
Counties of—
Bergen
Hunterdon
Essex
Middlesex
Hudson
Monmouth
New York
DISTRICT NO. 3 -PHILADELPHIA.
Delaware
New Jersey
Counties of—
Cape May
Atlantic
Cumberland
Burlington
Camden
Pennsylvania (eastern part)
Counties of—
Clinton
Adams
Bedford
Columbia
Cumberland
Berks
Dauphin
Blair
Bradford
Delaware
Elk
Bucks
Franklin
Cambria
Cameron
Fulton
Huntingdon
Carbon
Center
Juniata
Chester
Lackawanna
Clearfield
Lancaster
DISTRICT NO. 4—CLEVELAND..
Kentucky (eastern part)
Counties of—
Bath
Elliott
Bell
Estill
Boone
Fayette
Bourbon
Fleming
Boyd
Floyd
Bracken
Garrard
Breathitt
Grant
Campbell
Greenup
Carter
Harlan
Clark
Harrison
Clay
Jackson

Morris
Passaic
Somerset

1,290,858
847,226
4,316,721
491,524
713,346
359,231

Sussex
Union
Warren

Gloucester
Mercer

Lebanon
Lehigh
Luzerne
Lycoming
McKean
Mifflin
Monroe
Montgomery
Montour
Northampton
Northumberlan d
Perry

Jessamine
Johnson
Kenton
Knott
. Knox
Laurel
Lawrence
Lee
Leslie
Letcher
Lewis

Lincoln
McCreary
Madison
Magoffin
Martin
Mason
Menifee
Montgomery
Morgan
Nicholas
Owsley

1
Data for land areas of States were recomputed in preparation for the 1940 Census and, therefore, differ
somewhat from those shown in previous issues.

ANNUAL REPORT OF BOARD OF GOVERNORS
DESCRIPTION OF FEDERAL RESERVE DISTRICTS-Continued
Land area
(square
miles)

Federal Reserve district
DISTRICT NO. 4.-CLEVELAND-Continued
Kentucky (eastern part)
Counties of—Continued
Pendleton
Powell
Rockcastle
Perry
Pulaski
Rowan
Pike
Robertson
Scott
Ohio
Pennsylvania (westen part)
Counties of—
Allegheny
Crawford
Indiana
Armstrong
Erie
Jefferson
Beaver
Fayette
Lawrence
Butler
Forest
Mercer
Clarion
Greene
Somerset
West Virginia (northern part)
Counties of—
Brooke
Marshall
Tyler
Hancock
Ohio
Wetzel

Whitley
Wolfe
Woodford

Population
April 1,
1940

41,122
13,931

6,907,612
3,317,201

1,202

205,290

152,471

12,330,219

61
9,887
49,142
30,594
39,899
22,888

663,091
1,821,244
3,571,623
1,899,804
2,677,773
1,696,684

DISTRICT NO. 6—ATLANTA

247,778

12,597,347

Alabama
Florida
Georgia . .
Louisiana (southern p art)
Parishes of—
Acadia
Evangeline
Allen
Iberia
Ascension
Iberville
Assumption
Jefferson
Avoyelles
Jefferson Davis
Beauregard
Lafayette
* Calcasieu
La Fourche
Cameron
Livingston
East Baton
Orleans
Rouge
Plaquemines
East Feliciana
Pointe Coupee
Mississippi (southern part)
Counties of—
Adams
Harrison
Amite
Hinds
Claiborne
Issaquena
Clarke
Jackson
Copiah
Jasper
Jefferson
Covington
Forrest
Jefferson Davis
Franklin
Jones
George
Kemper
Greene
Lamar
Hancock
Lauderdale
Tennessee (eastern Daft)
Counties of—
Clay
Anderson
Cocke
Bedford
Bledsoe
Coffee
Blount
Cumberland
Davidson
Bradley
Campbell
DeKalb
Dickson
Cannon

Fentress
Carter
Franklin
Cheatham
http://fraser.stlouisfed.org/
Giles
Claiborne

51,078
54,262
58,518
26,630

2,832,961
1,897,414
3,123,723
1,611,595

26,092

1,073,748

31,198

2,057,906

Venango
Warren
Washington
Westmoreland

DISTRICT NO. 5-RICHMOND
District of Columbia
Maryland
North Carolina ..
South Carolina
Virginia.
West Virginia (souther^ nart.l
Counties of—
Hardy
Barbour
Harrison
Berkeley
Jackson
Boone
Jefferson
Braxton
Kanawha
Cabell
Lewis
Calhoun
Clay
Lincoln
Doddridge
Logan
McDowell
Fayette
Marion
Gilmer
Mason
Grant
Mercer
Greenbrier
Hampshire
Mineral

Federal Reserve Bank of St. Louis

Mingo
Monongalia
Monroe
Morgan
Nicholas
Pendleton
Pleasants
Pocahontas
Preston
Putnam
Raleigh
Randolph
Ritchie

Roane
Summers
Taylor
Tucker
Upshur
Wayne
Webster
Wirt
Wood
Wyoming

Rapides
St. Bernard
St. Charles
St. Helena
St. James
St. John the
Baptist
St. Landry
St. Martin
St. Mary
St. Tammany

Tangipahoa
Terrebonne
Vermilion
Vernon
Washington
West Baton
Rouge
West Feliciana

Lawrence
Leake
Lincoln
Madison
Marion
Neshoba
Newton
Pearl River
Perry
Pike
Rankin

Scott
Sharkey
Simpson
Smith
Stone
Walthall
Warren
Wayne
Wilkinson
Yazoo

Grainger
Greene
Grundy
Hamblen
Hamilton
Hancock
Hawkins
Hickman
Houston
Humphreys

Jackson
Jefferson
Johnson
Knox
Lawrence
Lewis
Lincoln
Loudon
McMinn
Macon

FEDERAL RESERVE SYSTEM
DESCRIPTION OF FEDERAL RESERVE DISTRICTS-Continued

Land area Population
(square
April 1,
miles)
1940

Federal Reserve district
DISTRICT NO. 6.-ATLANTA-Continued
Tennessee (eastern part)
Counties of—Continued
Marion
Perry
Sequatchie
Marshall
Pickett
Sevier
Maury
Polk
Smith
Meigs
Putnam
Stewart
Monroe
Rhea
Sullivan
Montgomery
Roane
Sumner
Moore
Robertson
Trousdale
Morgan
Rutherford
Unicoi
Overton
Scott
Union
DISTRICT NO. 7.-CHICAGO
Illinois (northern part
Counties of—
Boone
Ford
Bureau
Fulton
Carroll
Grundy
Cass
Hancock
Champaign
Henderson
Christian
Henry
Clark
Iroquois
Coles
Jo Daviess
Cook
Kane
Cumberland
Kankakee
De Kalb
Kendall
De Witt
Knox
Douglas
Lake
Du Page
La Salle
Lee
Edgar
Indiana (northern part)
Counties of—
Adams
Fountain
Allen
Franklin
Bartholomew
Fulton
Benton
Grant
Blackford
Hamilton
Boone
Hancock
Brown
Hendricks
Carroll
Henry
Cass
Howard
Clay
Huntington
Clinton
Jasper
Dearborn
Jay
Decatur
Jennings
De Kalb
Johnson
Delaware
Kosciusko
Elkhart
Lagrange
Fayette
Lake
Iowa
Michigan (southern pa rt)
Counties of—
Alcona
Eaton
Allegan
Emmet
Alpena
Genesee
Antrim
Gladwin
Arenac
Grand Traverse
Barry
Gratiot
Bay
Hillsdale
Benzie
Huron
Berrien
Ingham
Branch
Ionia
Calhoun
Iosco
Cass
Isabella
Charlevoix
Jackson
Cheboygan
Kalamazoo
Clare
Kalkaska
Clinton
Kent
Crawford
Lake
Wisconsin (southern part}
Counties of—
Door
Adams
Brown
Fond du Lac
Calumet
Grant
Clark
Green
Columbia
Green Lake
Crawford
Iowa
Dane
Jackson
Dodge
Jefferson

Van Buren
Warren
Washington
Wayne
White
Williamson
Wilson

Livingston
Logan
McDonough
McHenry
McLean
Macon
Marshall
Mason
Menard
Mercer
Moultrie
Ogle
Peoria
Piatt
Putnam

Rock Island
Sangamon
Schuyler
Shelby
Stark
Stephenson
Tazewell
Vermilion
Warren
Whiteside
Will
Winnebago
Woodford

La Porte
Madison
Marion
Marshall
Miami
Monroe
Montgomery
Morgan
Newton
Noble
Ohio
Owen
Parke
Porter
Pulaski
Putnam
Randolph

Ripley
Rush
St. Joseph
Shelby
Starke
Steuben
Tippecanoe
Tipton
Union
Vermillion
Vigo
Wabash
Warren
Wayne
Wells
White
Whitley

Lapeer
Leelanau
Lenawee
Livingston
Macomb
Manistee
Mason
Mecosta
Midland
Missaukee
Monroe
Montcalm
Montmorency
Muskegon
Newaygo
Oakland
Oceana

Ogemaw
Osceola
Oscoda
Otsego
Ottawa
Presque Isle
Roscommon
Saginaw
St. Clair
St. Joseph
Sanilac
Shiawassee
Tuscola
Van Buren
Washtenaw
Wayne
Wexford

Juneau
Kenosha
Kewaunee
Lafayette
Langlade
Manitowoc
Marathon
Marinette

Marquette
Milwaukee
Monroe
Oconto
Outagamie
Ozaukee
Portage
Racine

190,446

19,406,389

35,333

6,591,832

26,779

2,788,910

55,986
40,484

2,538,268
4,932,562

31,864

2,554,817

ANNUAL REPORT OF BOARD OF GOVERNORS
DESCRIPTION OF FEDERAL RESERVE DISTRICTS—Continued
Land area
(square
miles)

Federal Reserve district
DISTRICT NO. 7.—CHICAGO—Continued
Wisconsin (southern part)
Counties of—Continued
Richland
Sheboygan
Rock
Vernon
Sauk
Walworth
Shawano
Washington

Waukesha
Waupaca
Waushara
Winnebago

Wood

DISTRICT NO. 8.—ST. LOUIS
Arkansas .
Illinois (southern part)
Counties of—
Adams
Franklin
Alexander
Gallatin
Bond
Greene
Brown
Hamilton
Calhoun
Hardin
Clay
Jackson
Clinton
Jasper
Crawford
Jefferson
Edwards
Jersey
Effmgham
Johnson
Fayette
Lawrence
Indiana (southern part^
Counties of—
Clark
Greene
Crawford
Harrison
Daviess
Jackson
Dubois
Jefferson
Floyd •
Knox
Gibson
Lawrence
Kentucky (western part)
Counties of—
Adair
Crittenden
Allen
Cumberland
Anderson
Daviess
Ballard
Edmonson
Barren
Franklin
Boyle
Fulton
Breckinridge
Gallatin
Bullitt
Graves
Butler
Grayson
Caldwell
Green
Calloway
Hancock
Carlisle
Hardin
Carroll
Hart
Casey
Henderson
Christian
Henry
Clinton
Hickman
Mississippi (northern part)
Counties of—
Alcorn
De Soto
Attala
Grenada
Benton
Holmes
Bolivar
Humphreys
Calhoun
Itawamba
Carroll
Lafayette
Chickasaw
Lee
Choctaw
Leflore
Clay
Lowndes
Coahoma
Marshall
Missouri (eastern part]
Counties of—
Adair
Clark
Audrain
Cole
Barry
Cooper
Benton
Crawford
Bollinger
Dade
Boone
Dallas
Butler
Daviess
Caldwell
Dent
Callaway
Douglas
Camden
Dunklin
Cape Girardeau Franklin
Carroll
Gasconade
Carter
Greene
Cedar
Grundy
Chariton
Harrison
Christian
Henry

Population
April 1,
1940

Macoupin
Madison
Marion
Massac
Monroe
Montgomery
Morgan
Perry
Pike
Pope
Pulaski

Randolph
Richland
St. Clair
Saline
Scott
Union
Wabash
Washington
Wayne
White
Williamson

Martin
Orange
Perry
Pike
Posey
Scott

SpencerSullivan
Switzerland
Vanderburg
Warrick
Washington

Hopkins
Jefferson
Larue
Livingston
Logan
Lyon
McCracken
McLean
Marion
Marshall
Meade
Mercer
Metcalfe
Monroe
Muhlenberg
Nelson

Ohio
Oldham
Owen
Russell
Shelby
Simpson
Spencer
Taylor
Todd
Trigg
Trimble
Union
Warren
Washington
Wayne
Webster

Monroe
Montgomery
Noxubee
Oktibbeha
Panola
Pontotoc
Prentiss
Quitman
Sunflower
Tellahatchie

Tate
Tippah
Tishomingo
Tunica
Union
Washington
Webster
Winston
Yalobusha

Hickory
Howard
Howell
Iron
Jefferson
Johnson
Knox
Laclede
Lafayette
Lawrence
Lewis
Lincoln
Linn
Livingston
Macon
Madison

Maries
Marion
Mercer
Miller
Mississippi
Moniteau
Monroe
Montgomery
Morgan
New Madrid
Oregon
Osage
Ozark
Pemiscot
Perry
Pettis

195,902

10,187,405

52,725
20,613

1,949,387
1,305,409

9,399

638,886

22,337

1,466,202

21,328

1,110,048

58,737

id | \J%JU y *JKJ\J

2 859 538

FEDERAL RESERVE SYSTEM
DESCRIPTION OF FEDERAL RESERVE DISTRICTS-Continued
Land area
(square
miles)

Federal Reserve district
DISTRICT NO. 8.-ST. LOUIS—Continue d
Missouri (eastern part)
Counties of—Continued
Phelps
Reynolds
Saline
Pike
Ripley
Schuyler
Polk
St. Charles
Scotland
Pulaski
St. Clair
Scott
Putnam
St. Francois
Shannon
Rails
St. Louis
Shelby
Randolph
St. Louis City
Stoddard
Ray
Ste. Genevieve
Stone
Tennessee (western part)
Counties of—
Henry
Fayette
Benton
Carroll
Gibson
Lake
Chester
Hardeman
Lauderdale
Crockett
Hardin
McNairy
Decatur
Haywood
Madison
Dyer
Henderson
Obion

Sullivan
Taney
Texas
Warren
Washington
Wayne
Webster
Wright

Population
April 1,
1940

10,763

857,935

DISTRICT NO. 9.-MINNEAP0LIS

412,304

5,542,966

Michigan (northern p art). .
Counties of—
Alger
Dickinson
Baraga
Gogebic
Chippewa
Houghton
Delta
Iron
Minnesota
Montana
North Dakota
South Dakota
Wisconsin (northern part)
Counties of—
Ashland
Dunn
Barron
Eau Claire
Bayfield
Florence
Buffalo
Forest
Burnett
Iron
Chippewa
La Crosse
Douglas
Lincoln

16,538

323,544

80,009
146,316
70,054
76,536
22,851

2,792,300
559,456
641,935
642,961
582,770

480,537

7,855,397

103,967
82,113
10,533

1,123,296
1,801,028
925,126

76,653
48,045

1 315 834
290,074

61,720

2,149,297

97,506

250,742

Shelby
Tipton
Weakley

Keweenaw
Luce
Mackinac
Marquette

Menominee
Ontonagon
Schoolcraft

Oneida •
Pepin
Pierce
Polk
Price
Rusk
St. Croix

Sawyer
Taylor
Trempealeau
Vilas
Washburn

DISTRICT NO. 10.—KANSAS CITY
Colorado
Kansas
Missouri (western par
Counties of—
Andrew
Cass
Atchison
Clay
Barton
Clinton
Bates
De Kalb
Buchanan
Gentry
Nebraska
New Mexico (northern part)
Counties of—
Bernalillo
Mora
Colfax
Rio Arriba
Harding
Sandoval
McKinley
San Juan
Oklahoma (northwestern narf)
Counties of—
Adair
Ellis
Alfalfa
Garfield
Beaver
Garvin
Beckham
Grady
Blaine
Grant
Caddo
Greer
Canadian
Harmon
Harper
Carter
Haskell
Cherokee
Cimarron
Hughes
Jackson
Cleveland
Comanche
Jefferson
Kay
Cotton
Kingfisher
Craig
Kiowa
Creek
Latimer
Custer
Le Flore
Delaware
Dewey
Lincoln
Wyoming

Holt
Jackson
Jasper
McDonald
Newton

Nodaway
Platte
Vernon
Worth

San Miguel
Santa Fe
Taos
Union

Valencia

Logan
Love
McClain
Mclntosh
Major
Mayes
Murray
Muskogee
Noble
Nowata
Okfuskee
Oklahoma
Okmulgee
Osage
Ottawa
Pawnee
Payne
Pittsburg

Pontotoc
Pottawatomie
Roger Mills
Rogers
Seminole
Sequoyah
Stephens
Texas
Tillman
Tulsa
Wagoner
Washington
Washita
Woods
Woodward

ANNUAL REPORT OF BOARD OF GOVERNORS
DESCRIPTION OF FEDERAL RESERVE DISTRICTS—Continued
Land area Popula(square tion April 1,
miles)
1940

Federal Reserve district
DISTRICT NO. ll.-DALLAS.
Arizona (southeastern part)
Counties of—
Cochise
Greenlee
Graham
Louisiana (northern part)
Parishes of—
Bienville
De Soto
Bossier
East Carroll
Caddo
Franklin
Caldwell
Grant
Catahoula
Jackson
Claiborne
La Salle
Concordia
Lincoln
New Mexico (southern part)
Counties of—
Catron
Eddy
Chaves
Grant
Curry
Guadalupe
De Baca
Hidalgo
Dona Ana
Lea
Oklahoma (southeastern part)
Counties of—
Atoka
Choctaw
Bryan
Coal
Texas
DISTRICT NO. 12.—SAN FRANCISCO.
Arizona (northwestern part)
Counties of—
Apache
Maricopa
Coconino
Mohave
Gila
California
Idaho
Nevada
Oregon
Utah
Washington

Pima

Santa Cruz

Madison
Morehouse
Natchitoches
Ouachita
Red River
Richland
Sabine

Tensas
Union
Webster
West Carroll
Winn

Lincoln
Luna
Otero
Oteo
Quay
Roosevelt

Sierra
Socorro
Torrance

Johnston
McCurtain

Marshall
Pushmataha

Navajo
Pinal

386,447

7,733,748

23,227

137,758

18,547

752,285

73,466

241,744

7,563

187,137

263,644
685,438

6,414,824
11,280,195

90,353

361,503

156,803
82,808
109,802
96,349
82,346
66,977

6,907,387
524,873
110,247
1,089,684
550,310
1,736,191

Yavapai
Yuma

FEDERAL RESERVE SYSTEM

FEDERAL RESERVE BRANCH TERRITORIES
(December 31, 1940)
BUFFALO BRANCH (district No. 2).—The 10 most westerly counties of New York State, as follows:
Monroe
Orleans
Allegany
Wyoming
Chautauqua
Genesee
Erie
Cattaraugus
Livingston
Niagara
CINCINNATI BRANCH (district No. 4).—That part of Kentucky in Federal Reserve district No. 4, and the
following counties in southern Ohio:
Adams
Clermont
Greene
Meigs
Ross
Athens
Clinton
Hamilton
Miami
Scioto
Brown
Darke
Highland
Montgomery
Vinton
Butler
Fayette
Jackson
Pike
Warren
Clark
Gallia
Lawrence
Preble
Washington
PITTSBURGH BRANCH (district No. 4).—Those portions of the States of Pennsylvania and West Virginia included in Federal Reserve district No. 4.
BALTIMORE BRANCH (district No. 5).—The State of Maryland and the following counties of West Virginia:
Barbour
Grant
Lewis
Pendleton
Taylor
Berkeley
Hampshire
Marion
Pleasants
Tucker
Braxton
Hardy
Mineral
Preston
Upshur
Calhoun
Harrison
Monongalia
Randolph
Webster
Doddridge
Jackson
Morgan
Ritchie
Wirt
Gilmer
Jefferson
Nicholas
Roane
Wood
CHARLOTTE BRANCH

Carolina:

(district No. 5) .—The following counties in the States of North Carolina and South
NORTH CAROLINA

Alamance
Alexander
Alleghany
Anson
Ashe
Avery
Buncombe
Burke
Cabarrus
Caldwell

Catawba
Chatham
Cherokee
Clay
Cleveland
Davidson
Davie
Forsythe
Gaston
Graham

Guilford
Haywood
Henderson
Iredell
Jackson
Lee
Lincoln
Macon
Madison
McDowell

Mecklenburg
Mitchell
Montgomery
Moore
Polk
Randolph
Richmond
Rockingham
Rowan
Rutherford

Stanly
Stokes
Surry
Swain
Transylvania
Union
Watauga
Wilkes
Yadkin
Yancey

SOUTH CAROLINA

Saluda
Lancaster
Newberry
Edgefield
Abbeville
Oconee
Spartanburg
Aiken
Fairfield
Laurens
Pickens
Union
Anderson
Greenville
Lexington
Richland
York
Cherokee
Greenwood
McCormick
Chester
BIRMINGHAM BRANCH (district No. 6).—The State of Alabama except the following counties:
Baldwin
Covington
Geneva
Houston
Pike
Barbour
Dale
Henry
Mobile
Russell
Coffee
and towns and cities in Lee and Chambers counties located on or south of the Atlanta & West Point Railroad
and the Western Railway of Alabama.
JACKSONVILLE BRANCH (district No. 6).—The entire State of Florida.
NASHVILLE BRANCH (district No. 6).—That part of the State of Tennessee included in Federal Reserve district
No. 6 with the exception of the city of Chattanooga.
N E W ORLEANS BRANCH (district No. 6).—Those parts of the States of Louisiana and Mississippi located
in Federal Reserve district No. 6, and the counties of Baldwin and Mobile in Alabama.
SAVANNAH AGENCY (district No. 6).—Savannah, Ga.
DETROIT BRANCH (district No. 7).—The following counties in the State of Michigan:
Bay
Ingham
Livingston
Saginaw
Tuscola
Genesee
Jackson
Macomb
Sanilac
Washtenaw
Hillsdale
Lapeer
Monroe
St. Clair
Wayne
Huron
Lenawee
Oakland
Shiawassee
LITTLE ROCK BRANCH (district No. 8).—The State of Arkansas except the following counties:
Baxter 1
Craighead
Greene
Mississippi
Sebastian2
Benton
Crawford
Lawrence
Phillips
Sharp
Boone
Crittenden
Lee
Poinsett
Washington
Carroll
Cross
Madison
Randolph
Woodruff
Clay
Fulton
Marion
St. Francis
and except also the towns of DeValls Bluff (Prairie County), Mena (Polk County), and Newport (Jackson
County).
1
Town of Gentry assigned to Little Rock Branch.
2
Town of Mansfield assigned to Little Rock Branch.

ANNUAL REPORT OF BOARD OF GOVERNORS

LOUISVILLE BRANCH (district No. 8).—That part of the State of Kentucky included in Federal Reserve district No. 8, with the exception of the town of Morganfield (Union County), and the following counties in
the State of Indiana:
Orange
Switzerland
Clark
Floyd
Jefferson
Perry
Washington
Crawford
Harrison
Lawrence
1
2
Scott
Dubois
Jackson
Martin
MEMPHIS BRANCH (district No. 8) .—Those parts of the States of Mississippi and Tennessee included in Federal
Reserve district No. 8, with the exception of Union City (Obion County), Tennessee, and Paris (Henry
County), Tennessee, and the following counties in the State of Arkansas:
Craighead
Cross
Lee
Phillips
St. Francis
Crittenden
Lawrence
Mississippi
Poinsett
Woodruff
also the town of DeValls Bluff (Prairie County), Arkansas.
HELENA BRANCH (district No. 9).—The entire State of Montana.
DENVER BRANCH (district No. 10).—The entire State of Colorado and that part of the State of New Mexico
included in Federal Reserve district No. 10.
OKLAHOMA CITY BRANCH (district No. 10).—That part of the State of Oklahoma located in Federal Reserve
district No. 10.
OMAHA BRANCH (district No. 10).—The entire States of Nebraska and Wyoming.
E L PASO BRANCH (district No. 11).—That part of the States of Arizona and New Mexico located in Federal
Reserve district No. 11, and the following counties in the State of Texas:
Andrews
Ector
Jeff Davis
Midland
Reeves
Crane
El Paso
Loving
Pecos
Ward
Culberson
Hudspeth
Martin
Presidio
Winkler
HOUSTON BRANCH (district No. 11).—The following counties in the southeastern part of the State of Texas:
Anderson
Cherokee
Jackson
Nacogdoches
Shelby
Angelina
Colorado
Jasper
Newton
Trinity
Austin
Fayette
Jefferson
Orange
Tyler
Bastrop
Fort Bend
Lavaca
Polk
Victoria
Brazoria
Galveston
Lee
Refugio
Walker
Brazos
Grimes
Liberty
Sabine
Waller
Burleson
Hardin
Madison
San Augustine
Washington
Calhoun
Harris
Matagorda
San Jacinto
Wharton
Chambers
Houston
Montgomery
following counties in the State of Texass:
SAN ANTONIO BRANCH (district No. 1]
Hidalgo
La Salle
Starr
Aransas
De Witt
Jim Hogg
Atascosa
Dimmit
Llano
Terrell
Jim Wells
Bandera
Duval
Live Oak
Travis
Bee
Edwards
Karnes
Mason
Uvalde
Bexar
Frio
Kendall
Maverick
Val Verde
Blanco
Gillespie
Kenedy
McMullen
Webb
Brewster
Goliad
Kerr
Medina
Willacy
Brooks
Gonzales
Kimble
Nueces
Wilson
Caldwell
Guadalupe
Kinney
Real
Zapata
Kleberg
San Patricio
Zavalla
Cameron
Hays
Comal
Los ANGELES BRANCH (district No. 12).—That part of the State of Arizona located in Federal Reserve district
No. 12, and the following counties in California:
Imperial
Los Angeles
Riverside
San Diego
Ventura
Inyo
Orange
San Bernardino
Santa Barbara
PORTLAND BRANCH (district No. 12.)—The entire State of Oregon, and the town of Ilwaco and the following
counties in the State of Washington:
Asotin
Columbia
Garfield
Skamania
Walla Walla
Clark
Cowlitz
Klickitat
Wahkiakum
Also, the following counties in the State of Idaho:
Benewah
Boundary
Idaho
Latah
Nez Perce
Bonner
Clearwater
Kootenai
Lewis
Shoshone
SALT LAKE CITY BRANCH (district No. 12).—The entire State of Utah and the following counties in Idaho and
Nevada:
IDAHO

Ada
Adams
Bannock
Bear Lake
Bingham
Blaine
Boise

Bonneville
Butte
Camas
Canyon
Caribou
Cassia
Clark

Custer
Elmore
Franklin
Fremont
Gem
Gooding
Jefferson

Jerome
Lemhi
Lincoln
Madison
Minidoka
Oneida
Owyhee

Payette
Power
Teton
Twin Falls
Valley
Washington

NEVADA

White Pine
Lincoln
Elko
Clark
SEATTLE BRANCH (district No. 12).—The entire State of Washington except the town of Ilwaco and the following counties which are affiliated with the Portland Branch:
Asotin
Columbia
Garfield
Skamania
Walla Walla
Clark
Cowlitz
Klickitat
Wahikiakum
1

Except the towns of Ferdinand and Holland.
2 Except the town of Loogootee.

FEDERAL RESERVE DISTRICTS

H M H
..••M,
(g)
•
O

BOUNDARIES OF FEDERAL RESERVE DISTRICTS
BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES
(APPROXIMATE IN THE ST. LOUIS DISTRICT)
FEDERAL. RESERVE 6ANK CITIES
FEDERAL RESERVE BRANCH CITIES
FEDERAL RESERVE BANK AGENCY

INDEX
Page

Acceptances:
Buying rates
46
Member bank holdings, December 31, 1940
50
Assets and liabilities. (See Condition statements.)
Bank credit. (See Credit, Bank.)
Bank directorates, Interlocking:
Regulation L:
Amendments
25
Policy actions of Board of Governors on
60
Press statement of Board of Governors on
60
Bank examinations
25
Bank failures
54
Bank mergers
54
Bank premises:
Member banks, December 31, 1940
48, 51
Bank robberies:
Law prohibiting possession of stolen bank property
24
Bankers' acceptances. (See Acceptances.)
Banking and tinancial legislation:
Assignment of Claims Act of 1940:
Federal Advisory Council recommendations on
67
Law enacted
2, 9, 24
Board of Governors reports to Congress on pending legislation
29
Stolen bank property
24
Trading With the Enemy Act, amended
24
Banking developments in 1940, Discussion of
4-9
Banking offices:
American foreign banking offices
27
Number of, 1933-1940
53
Banking statistics:
Preparation for publication of
30
Banking structure:
Discussion of changes in
8
Banking studies
29
Banks:
Branches:
Number of:
1933-1940
53
1940, analysis of changes in
54
Discussion of changes in 1940
8
Consolidations, absorptions, etc
54
Loans to, by member banks:
December 31, 1940
50
Number of:
1933-1940
53
1940, analysis of changes in
54
Discussion of changes in 1940
8
Suspensions:
Discussion of
8
Number of
54
(See also Federal Reserve Banks; National member banks; Nonmember
banks; State member banks.)
Bills:
Bought by Federal Reserve Banks:
All banks combined:
1918-1939, end of year figures
52
1940, end of month
figures
52
Each bank, end of year
figures
34
Earnings on, each bank
40
Volume of operations
39
101

102

INDEX
Page

Bills—ContinuedDiscounted by Federal Reserve Banks:
All banks combined:
1918-1939, end of year
figures
52
1940, end of month
figures
52
December 31, 1940
32
Each bank, end of year
figures
34
Earnings on, each bank
40
Volume of operations
39
Board of Governors of Federal Reserve System:
Davis, Chester C , reappointed
28
Eccles, Marriner S.:
Designated Chairman
28
Reappointed
28
Expenses
29, 44
Hansen, Alvin H., engaged for economic research
30
Members and officers
71
Policy actions:
Membership condition prohibiting real estate agency activities discontinued
62
Rates on industrial loans
62
Regulation F. Trust powers of national banks
61
Regulation L. Interlocking bank directorates
60
Press statement:
Interlocking bank directorates
60
Publications:
Banking and monetary statistics, Preparation for publication of
29
Banking studies completed
29
Federal Reserve Bulletin:
Changes in format and content.
29
Ransom, Ronald, designated Vice Chairman
28
Receipts and disbursements
44
Reports to Congress on pending legislation
30
Special Report to Congress
2, 68-70
Staff changes:
Nelson, Fred A., appointed Assistant Secretary
29
Publications and information unit set up
29
Bonds:
Prices, Discussion of
15
United States Government. (See United States Government securities.)
Yields:
Discussion of
15
Monthly and yearly
figures
56
Branch banks:
Foreign branches of member banks
27
Number of:
1933-1940
53
1940, analysis of changes in
54
Discussion of changes in 1940
8
Brokers and dealers in securities:
Loans to, by member banks, December 31, 1940
50
Business conditions in 1940, Discussion of
11-16
Capital:
Federal Reserve Banks:
All banks combined, December 31, 1940
33
Each bank, end of year
figures
34
Flight to United States, Discussion of
2, 16-18
Member banks:
December 31, 1940
49, 51
Capital issues, Discussion of
15
Capital movement to United States, Discussion of
2, 16-20
Central reserve city member banks:
Assets and liabilities, December 31, 1940
48
Classification of loans, investments, real estate and capital:
December 31, 1940
50

INDEX

103
Page

Charts:
All member banks, demand deposits, loans, investments, and reserve
balances
7
Excess reserves of member banks
5
Selected business series
12
Yield on 1960-65 Treasury bond
3
Check clearing and collection:
Par list, Number of banks on:
Discussion of
23
Table
54
Regulation G. Noncash collection
24
Volume of operations at Federal Reserve Banks
39
Claims against Government, Assignment of:
Federal Advisory Council recommendation on
67
Law enacted
2, 9, 24
Clayton Act:
Interlocking bank directorates:
Regulation L, amended
25, 60
Closed banks
54
Coins received and counted by Federal Reserve Banks
39
Commercial loans, Discussion of. increase in
:
6
Commercial paper:
Discount rates, open market
56
Member bank holdings, December 31, 1940
50
Commitment rates of Federal Reserve Banks
46
Commodity prices. (See Prices.)
Condition statements:
Federal Reserve Banks:
All banks combined, December 31, 1940
32
Each bank, end of year
figures
34
Member banks, December 31. 1940
48, 50
Congress:
Board of Governors reports to:
Pending legislation
30
Special Report to Congress
2, 68-70
Consolidations, absorptions, etc. of banks
54
Construction activity, Discussion of
13
Construction contracts awarded:
Defense contracts awarded, Discussion of
13
Indexes of value of
57
Contracts, Public:
Assignment of claims against Government:
Federal Advisory Council recommendation on
67
Law enacted
2, 9, 24
Corporate profits, Discussion of
1, 15
Corporate stocks owned by member banks:
December 31, 1940
51
Corporations, Foreign banking. (See Foreign banking corporations.)
Country member banks:
Assets and liabilities, December 31, 1940
48
Classification of loans, investments, real estate and capital:
December 31, 1940
50
Credit, Bank:
Discussion of growth in
1-2
Federal Reserve:
1918-1939, end of year
figures
52
1940, end of month
figures
52
Special Report to Congress
2, 68-70
Credit control:
Special Report to Congress recommendations on
68-70
Credit policy, Discussion of
2-8
Currency:
Circulation, 1918-1940
52
Demand for currency, Discussion of
6
Received and counted by Federal Reserve Banks
39

104

INDEX
Page

Davis, Chester C.:
Appointed member of Advisory Commission to the Council of National
Defense
9
Reappointed as member of Board of Governors
28
Defense program:
Assignment of Claims Act of 1940:
Federal Advisory Council recommendation on
67
Law enacted
2, 9, 24
Business conditions under
11-14, 16
Conference in Washington, November 12-13, 1940
9
Contracts awarded
13
Davis, Chester C , appointed member of Advisory Commission
9
Discussion of
1-3
Draper, Ernest G., small business activities
9
Federal Advisory Council recommendation on financing of
67
Federal Reserve participation in
2, 9-11
National Defense Advisory Commission appointed
9
Small business activities
2, 9-11
Special Report to Congress recommendations on financing of
69
Department store sales (value) index
57
Deposits:
Demand deposits of member banks:
Chart of
7
Discussion of growth in
6
Federal Reserve Banks:
All banks combined, December 31, 1940
33
Each bank, end of year
figures
34
Member banks, December 31, 1940
48
Nonmember deposits in Federal Reserve Banks:
1918-1939, end of year
figures
52
1940, end of month
figures
52
Reserves required for member banks
47
Time deposits, Interest rate on
47
Turnover of deposits, Discussion of
6
Devaluation of the dollar:
Special Report to Congress recommendation on
69
Directorates, Interlocking. (See Bank directorates, Interlocking.)
Discount rates:
Federal Reserve Banks:
Discussion of
22
Table
46
Dividends:
Federal Reserve Banks
21, 41, 42
Member banks
49
Draper, Ernest G., defense activities
9
Durable goods production index
57
Earnings and expenses:
Federal Reserve Banks:
All banks combined
42
Discussion of
21-22
Each bank
40
Member banks:
Discussion of
8
Eccles, Marriner S.:
Designated Chairman of Board of Governors
28
Reappointed member^of Board of Governors
28
Edge Act corporations:
Examination of
25
List of
26
Employment:
Discussion of
14, 16
Factory employment index
57
Nonagricultural employment index
57
Examinations. (See Bank examinations.)
Expenses:
Board of Governors of Federal Reserve System
29, 44
Federal Reserve Banks
40, 42

INDEX

105
Page

Exports and imports of United States:
Chart
12
Factory employment index
57
Failures, Bank
54
Federal Advisory Council:
Harrison, George L, appointed member of
30
Meetings
28
Members and officers
72
Recommendations to Board of Governors:
February 20, 1940. Purchases of foreign silver
67
May 21, 1940. Assignment of claims on the United States
67
October 8, 1940. Financing of war defense program
67
Special Report to Congress
2, 68-70
Federal Deposit Insurance Corporation:
Membership changes
54
Federal Open Market Committee:
Discussion of policies
3
Meetings
28
Members and officers
71
Policy actions
63-66
Special Report to Congress recommendations on
69
Federal Reserve Banks:
Assessment for expenses of Board of Governors
41
Branches:
Directors, List of
75-80
Chairmen and Deputy Chairmen:
Conferences
28
List of
73
Defense program, Federal Reserve Bank participation in
9-11
Directors, List of
75-80
Dividends paid:
All banks combined
42
Each bank
41
Earnings and expenses:
All banks combined
42
Discussion of
21-22
Each bank
40
Employees, number and salaries
43
Examination of
25
Officers and employees:
Senior officers, List of
73
Presidents:
Conferences
28
Harrison, George L., resignation, New York
30
List of
74
Special Report to Congress
2, 68-70
Sproul, Allan, appointed, New York
30
Profit and loss account
41
Retirement system contributions
40
Salaries of officers and employees
40, 43
Vice Presidents:
List of.
74
Rounds, Leslie, appointed, New York
30
Volume of operations
39
Federal Reserve branch banks. (See Federal Reserve Banks: Branches.)
Federal Reserve Bulletin:
Changes in format and content
29
Federal Reserve districts:
Area, square miles
91-96
Branch territories, Counties comprising
97
Map showing outline
99
Population
91-96
Federal Reserve notes:
Circulation
34
Collateral security, end of year
figures
34
Issued
34

106

INDEX
Page

Federal Reserve notes—Continued.
Redemption fund:
All banks combined, December 31, 1940
32
Each bank, end of year
figures
34
Federal Reserve policy, Discussion of
2-8
Federal Reserve System:
Membership:
Banks admitted in 1940
26
Changes in
54
Condition prohibiting real estate agency activities discontinued
62
Discussion of increase in
8
State bank and trust company members
,
81-90
Special Report to Congress
2, 68-70
Fiduciary powers of national banks. (See Trust powers of national banks.)
Financial legislation. (See Banking and financial legislation.)
Foreign assets in United States:
Table of amounts frozen, by countries
18
Foreign banking corporations:
Examination of
25
List of
26
Foreign banks:
Central banks:
Credits to, by Federal Reserve Banks
23
Deposits of, held by Federal Reserve Banks:
All banks combined, December 31, 1940
33
Each bank, end of year
figures
34
Foreign funds, Impounding of:
Trading With the Enemy Act, amended
24
Foreign trade of United States, Discussion of
19
Franchise tax paid by Federal Reserve Banks to Government, 1917-1932
42
Freight-car loadings indexes
57
Gold:
Foreign gold purchased by Treasury, Discussion of
20
Movement to United States, Discussion of
1-2, 16-20
Special Report to Congress recommendation on gold purchases
69
Stock, Monetary in United States:
1918-1939, end of year
figures
52
1940, end of month
figures
52
Discussion of
5
Gold certificates:
Federal Reserve Bank holdings:
All banks combined, December 31, 1940
32
Each bank, end of year
figures
34
Government bonds. (See United States Government securities.)
Greenbacks, Special Report to Congress recommendation on
69
Hansen, Alvin H., engaged for economic research
29
Harrison, George L.:
Appointed member of Federal Advisory Council
30
Resignation as President of Federal Reserve Bank of New York
30
Holding company affiliates:
Permits granted
26
Hungary, National Bank of:
Loan from Federal Reserve Banks repaid
23
Income:
Agricultural, Discussion of
1, 14
National income payments:
Chart
12
Discussion of
1
Indexes
57
Industrial advances of Federal Reserve Banks:
All banks combined, December 31, 1940
32
Commitments
:
34
Each bank, end of year
figures
34
Earnings on
40
Rates on:
Policy action of Board of Governors
62
Table
46

Volume of operations
39

INDEX

107

Page
Industrial production. (See Production, Industrial.)
Inflation:
Special Report to Congress
2, 68-70
Interdistrict collection system:
Membership in:
Discussion of
23
Table
54
Volume of operations at Federal Reserve Banks
39
Interest rates:
Federal Reserve Banks
46
Industrial advances of Federal Reserve Banks:
Policy action of Board of Governors on
62
Open market, in New York City
56
Time deposits
47
United States Government securities
38
Interlocking bank directorates. (See Bank directorates, Interlocking.)
Inventories, Discussion of
13
Investments:
Member banks:
December 31, 1940
48, 50
Chart of
7
Laws and legislation. (See Banking and financial legislation.)
Liabilities. (See Condition statements.)
Loans:
Brokers' loans by member banks
50
Commercial, Discussion of increase in
6
Industrial. (See Industrial advances of Federal Reserve Banks.)
Real estate loans of member banks
50
Security loans by member banks
50
Total for member banks:
December 31, 1940
48, 50
Chart of
7
Loans and investments:
Member banks, December 31, 1940
48, 50
Margin requirements:
Brokers and dealers in securities. Regulation T:
Agreements of nonmember banks under Sec. 8(a) of Securities Exchange
Act of 1934
28
Table of
47
Member banks:
Bills discounted for. (See Bills: Discounted by Federal Reserve Banks.)
Branches, Foreign
27
Condition statements, December 31, 1940
48, 50
Deposits. (See Deposits.)
Loans and investments. (See Loans and investments.)
National banks. (See National member banks.)
Reserves. (See Reserves.)
State banks. (See State member banks.)
Suspensions. (See Banks: Suspensions.)
Minerals production index
57
Monetary gold stock. (See Gold: Stock, Monetary in United States.)
Monetary legislation. (See Banking and financial legislation.)
Monetary statistics:
Preparation for publication of
29
Money in circulation:
1918-1939, end of year
figures
52
1940, end of month
figures
52
Discussion of
6
Money rates:
Open market in New York City
'
56
Mortgages:
Regulation F. Amendments
•'.".
25
Mutual savings banks:
Banking offices, 1933-1940
53
Branches:
1933-1940
_
53
1940, analysis of changes in
54

108

INDEX
Page

Mutual savings banks—Continued.
Number of:
1933-1940
1940, analysis of changes in
National Defense Advisory Commission:
Appointment of
Davis, Chester C , appointed a member
•.
Federal Reserve field representatives of
National income. (See Income.)
National member banks:
Assets and liabilities, December 31, 1940
Banking offices, 1933-1940
Branches:
Number of:
1933-1940
1940, analysis of changes in
Classification of loans, investments, real estate and capital:
December 31, 1940
Number of:
1933-1940
1940, analysis of changes in
Trust powers. (See Trust powers of national banks.)
Nelson, Fred A., appointed Assistant Secretary
Noncash collections:
Regulation G. New regulation issued by Board of Governors
Nondurable goods production index
Nonmember banks:
Deposits of, held by Federal Reserve Banks:
1918-1939, end of year
figures
1940, end of month
figures
Insured:
Banking offices, 1933-1940
Branches:
1933-1940
1940, analysis of changes in
Number of:
1933-1940
1940, analysis of changes in
Uninsured:
Banking offices, 1933-1940
Branches:
1933-1940
1940, analysis of changes in
Number of:
1933-1940
1940, analysis of changes in
Non-par banks:
Discussion of
Number of
Number of banks. (See Banks: Number of.)
Open Market Committee. (See Federal Open Market Committee.)
Open-market operations:
Discussion of
Federal Open Market Committee policy actions
Par list:
Number of banks on:
Discussion of
Table
Payrolls, Factory:
Discussion of
Index
Policy actions. (See Board of Governors of Federal Reserve System:
Policy actions; Federal Open Market Committee: Policy actions.)
Postal savings deposits:
Interest rate on, paid by member banks

53
54
9
9
10-11
48
53
53
54
50
53
54
29
24
57
52
52
53
53
54
53
54
53
53
54
53
54
23
54

3
63-66
23
54
14
57

INDEX

109
Page

Prices:
Wholesale commodity:
Chart
12
Discussion of
14
Index
57
Private banks:
Banking offices, 1933-1940
53
Branches:
1933-1940.
53
1940, analysis of changes in
54
Number of:
1933-1940
53
1940, analysis of changes in
54
Production, Industrial:
Chart
12
Discussion of
13
Indexes
57
Profits:
Corporate profits, Discussion of
1, 15
Member banks, Discussion of
8
Ransom,, Ronald:
Designated Vice Chairman, Board of Governors
28
Real estate:
Loans on, by member banks:
December 31, 1940
50
Member bank holdings', December 31, 1940
48
Membership condition prohibiting bank as real estate agent discontinued
by Board of Governors
62
Regulations of Board of Governors:
Regulation F. Trust powers of national banks:
Amendments
25
Policy action of Board
61
Regulation G. Noncash collections:
New regulation
24
Regulation L. Interlocking bank directorates:
Amendments
25
Regulation T. Margin requirements for brokers:
Agreements of nonmember banks under Sec. 8(a) of Securities Exchange Act of 1934
28
Reserve bank credit. (See Credit, Bank.)
Reserve city member banks:
Assets and liabilities, December 31, 1940
48
Classification of loans, investments, real estate and capital:
December 31, 1940
50
Reserve requirements:
Member banks
47
Special Report to Congress recommendations on
68-70
Reserves:
Federal Reserve Banks:
All banks combined, December 31, 1940
33
Each bank, end of year
figures
34
Member banks:
Account in Federal Reserve Banks:
All banks combined, December 31, 1940
33
Each bank, end of year
figures
34
Chart of
7
Discussion of growth in
2, 4-6
Excess:
1918-1939, end of year
figures
52
1940, end of month
figures
52
Chart of
5
Discussion of
4-6
Special Report to Congress recommendations on
2, 68-70
Total:
1918-1939, end of year
figures
52
1940, end of month
figures
52

110

INDEX
Page

Rounds, Leslie R., appointed First Vice President, Federal Reserve Bank of
New York
30
Salaries:
Federal Reserve Banks
40, 43
Savings deposits:
Interest rate on
47
Securities:
Loans on, by member banks, December 31, 1940
50
United States Government. (See United States Government securities.)
Securities Exchange Act of 1934:
Agreements of nonmember banks under
28
Security markets, Discussion of
15
Silver:
Federal Advisory Council recommendation on purchases of foreign silver. 67
Special Report to Congress recommendation on
69
Silver certificates:
Special Report to Congress recommendation on
69
Small business activities of defense program:
Draper, Ernest G., in charge of Reserve participation in
9
Federal Reserve participation in
2, 9-11
Sproul, Allan, appointed President of Federal Reserve Bank of New York....
30
Stabilization fund:
Special Report to Congress recommendation on
69
State banks:
Federal Reserve membership, Admitted to
8
State member banks:
Assets and liabilities, December 31, 1940
48
Banking offices, 1933-1940
53
Branches:
Number of:
1933-1940
53
1940, analysis of changes in
54
Classification of loans, investments, real estate and capital:
December 31, 1940
50
Examinations of
25
List of, December 31, 1940
81-90
Number of:
1933-1940
53
1940, analysis of changes in
54
States and political subdivisions:
Obligations of, owned by member banks:
December 31, 1940
48
Statistics, Banking and monetary:
Publication of compilation announced
30
Stock prices:
Chart
12
Discussion of
15
Table
56
Stolen bank property:
Law prohibiting possession of
24
Surplus:
Federal Reserve Banks
40, 42
Member banks
49
Suspensions, Bank
54
Taxation:
Special Report to Congress recommendation on
69
Trading With the Enemy Act, amended
24
Treasury cash and deposits with Federal Reserve Banks. (See United States
Government deposits: Federal Reserve Banks.)
Treasury currency outstanding, 1918-1940
52
Treasury financing:
Special Report to Congress recommendations on
69
Trust company members of Federal Reserve System
81-90
Trust powers of national banks:
Common trust funds:
Regulation F.:
25
Amendments
Policy action of Board of Governors
61
http://fraser.stlouisfed.org/
Permits granted
26
Federal Reserve Bank of St. Louis

INDEX

111
Page

United Kingdom:
Dollar resources requisitioned
17
Gold reserves, Discussion of
20
United States Government deposits:
Federal Reserve Banks:
All banks combined:
1918-1939, end of year figures
52
1940, end of month
figures
52
December 31, 1940
33
Each bank, end of year
figures
34
United States Government securities:
Bond yields:
Chart of yield on 1960 65 bond
3
Discussion of
3
Table
56
Federal Open Market Committee policy actions on
63-66
Federal Reserve Bank holdings:
All banks combined:
1918-1939, end of year
figures
52
December 31, 1939 and 1940 in detail
38
1940, end of month
figures
52
December 31, 1940
32
Discussion of
2,3
Each bank, end of year
figures
34
Earnings on
22, 40
Interest rate on
38
Member bank holdings:
December 31, 1940
48, 50
Discussion of
7
Open-market operations
3
Special Report to Congress recommendations on
69
Treasury bills:
Discount rates on
56
Treasury notes:
Yields
56
Volume handled by Federal Reserve Banks
39
United States Treasurer:
General account on deposit in Federal Reserve Banks. (See United States
Government deposits: Federal Reserve Banks.)
Wage rates, Discussion of
15
War:
Business conditions in United States affected by
11-16
Gold and capital movements affected by
16-20
Materials purchased in United States
18
Wholesale commodity prices. (See Prices: Wholesale commodity.)