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FIFTEENTH ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF ATLANTA 1929 FIFTEENTH ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF ATLANTA 1929 ATLANTA, GEORGIA DIRECTORS AND OFFICERS FOR 1930 FEDERAL RESERVE BANK OF ATLANTA DIRECTORS OSCAR NEWTON, Chairman, E. C. MELVIN, Selma, Ala. Atlanta, Ga. W. H. KETTIG, Deputy Chairman, Birmingham, Ala. WARE, Leesburg, Fla. Q SIMON, New Orleans, La. ^ ~ T . -., „ J. A. MCCRARY, Decatur, Ga. , , •,, T T T T LUKE LEA, Nashville, Tenn. 6 5 GEO. S. HARRIS, Atlanta, Ga. G G> LEON H. LANE YOUNG, Atlanta, Ga. Member of Federal Advisory Council: J. P. BUTLER, New Orleans, La. OFFICERS E. R. BLACK, Governor HUGH FOSTER, Deputy Governor CREED TAYLOR, Deputy Governor wTOTn >- 7 • M. V . BELL, Cosher R. A. SIMS, Assistant Cashier H. F. CONNIFF, Assistant Cashier V. K. BOWMAN, Assistant Cashier C. R. CAMP, Assistant Cashier P. L. T. BEAVERS, Assistant Cashier S. P. SCHUESSLER, Assistant Cashier L. M. CLARK, Assistant Cashier OSCAR NEWTON, Chairman of the Board and federal Reserve Agent ALBERTSON, Assistant Federal Reserve Agent and Secretary of the Board of Directors " WARD w s j w JQHNSJ G f W Audjfor HONOUR, Assistant Auditor RANDOLPH, PARKER AND FORTSON, General Counsel NEW ORLEANS BRANCH DIRECTORS LEON C. SIMON, Chairman, New Orleans, La. MARCUS WALKER, New Orleans, La. R. S. HECHT, New Orleans, La. P. H. SAUNDERS, New Orleans, La. J. D. O'KEEFE, New Orleans, La. F. W. FOOTE, Hattiesburg, Miss. A. P. BUSH, Mobile, Ala. OFFICERS MARCUS WALKER, Managing Director j _ A . WALKER, Assistant Manager w . H. BLACK, Cashier F . c . VASTERLING, Assistant Cashier . E . MILLER, Assistant Auditor W BIRMINGHAM BRANCH OFFICERS DIRECTORS ALEX E. WALKER, Managing Director H. J. URQUHART, Cashier W. H. KETTIG, Chairman, Birmingham, Ala. ALEX E. WALKER, Birmingham, Ala. T. N. KNOWLTON, Assistant Cashier OSCAR WELLS, Birmingham, Ala. W. E. HENLEY, Birmingham, Ala. W. W. CRAWFORD, Birmingham, Ala. J. H. FRYE, Birmingham, Ala. E. F. ALLISON, Bellamy, Ala. JACKSONVILLE BRANCH OFFICERS DIRECTORS W. S. MCLARIN, JR., Managing Director S. O. CHASE, Chairman, Sanford, Fla. FULTON SAUSSY, Jacksonville, Fla. GEO. S. VARDEMAN, JR., Cashier MARY E. MAHON, Assistant Cashier W. S. MCLARIN, JR., Jacksonville, Fla. JNO. C. COOPER, Jacksonville, Fla. EDW. W. LANE, Jacksonville, Fla. ARTHUR F. PERRY, Jacksonville, Fla. G. G. WARE, Leesburg, Fla. NASHVILLE BRANCH DIRECTORS OFFICERS LUKE LEA, Chairman, Nashville, Tenn. JOEL B. FORT, JR., Managing Director JOEL B. FORT, JR., Nashville, Tenn. E. R. HARRISON, Cashier E. A. LINDSEY, Nashville, Tenn. J. E. CALDWELL, Nashville, Tenn. L. W. STARR, Assistant Cashier PAUL M. DAVIS, Nashville, Tenn. WM. P. RIDLEY, Columbia, Tenn. J. B. RAMSEY, Knoxville, Tenn. SAVANNAH AGENCY J. H. BOWDEN, Manager JAS. A. GOETHE, Assistant Manager HAVANA AGENCY L. L. MAGRUDER, Manager H. C. FRAZER, Assistant Manager LETTER OF TRANSMITTAL Atlanta, Ga., February 12, 1930. Sirs: I have the honor to submit herewith the Fifteenth Annual Report of the Federal Reserve Bank of Atlanta, covering the year 1929. Respectfully, OSCAR NEWTON, Chairman of the Board and Federal Reserve Agent Federal Reserve Board, Washington, D. C. GENERAL BUSINESS CONDITIONS Increases in crop values, in the production of pig iron and coal, and in the volume of wholesale trade, and declines in building and construction activity and in retail trade in 1929 as compared with the year before are shown in some of the important indices of business in the sixth district. Production of bituminous coal in Alabama in 1929 was 0.4 per cent, and in Tennessee 2.5 per cent larger than in 1928, but in both states it was less than for 1927, or 1926. Output of pig iron in Alabama was 6.2 per cent larger in 1929 than in 1928, but was smaller than for the two years before 1928. Building and construction activity as measured by building permit statistics for twenty reporting cities in the district, and in contract awards for the district as a whole, was at a lower level during 1929 than in any other recent year. Total value of permits for these twenty cities declined 33.1 per cent in 1929 compared with 1928, and was smaller than for any other year since 1921. Contract awards in the district during 1929 declined only slightly from 1928, but were smaller than for other years since 1923. Retail distribution of merchandise as measured by sales figures reported monthly to the Federal Reserve Bank by 42 department stores in 22 cities of the district declined 2.4 per cent in 1929 compared with the year before, and was also smaller than in 1927, or 1926. Volume of wholesale trade in eight lines averaged 1.6 per cent greater than in 1928, but was 3 per cent less than in 1927 and 15.3 per cent less than in 1926. Commercial failures in the district were fewer in number, and smaller in liabilities, than in 1928, or 1927, but larger than in 1926. According to estimates by the United States Department of Agriculture, the value of principal crops raised in 1929 was greater than in 1928 in Alabama, Georgia, Louisiana, Mississippi and Tennessee, but slightly smaller in Florida. For the six states combined the total for 1929 shows increases of 10.4 per cent over 1928, 8.6 per cent over 1927, and 27.1 per cent over 1926. The value of the cotton crop, including seed, in 1929 was 12.9 per cent greater than in 1928 in these six states. Savings deposits of 74 reporting banks at the close of 1929 averaged 7.7 per cent less than a year earlier. Demand deposits of all member banks in December, 1929, were smaller than at the same time of any year since 1923, and time deposits in December were the smallest for that month since 1924. Debits to individual accounts by clearing house banks in 26 cities of the district increased 3.7 per cent in 1929 over the year before, and were also greater than for other recent years. Figures for 15 of these cities which have reported for a number of years indicate a steady upward trend from 1921 to 1926, but a slightly declining tendency in 1927 and 1928. Totals for 1929, however, are slightly larger than for 1926, and are greater than for any other recent year. (000 omitted) 1929 1928 1927 1,185,164 $ 1,073,090 $ 1,091,206 72,322 $ 108,075 $ 114,914 328,595 $ 329,833 $ 380,773 1,205 1,547 1,574 25,145 $ 32,898 $ 29,222 Value of Principal Crops (1) $ Building Permits, 20 cities $ Contracts awarded, district $ Commercial Failures, Number (2) Liabilities $ Retail Trade—Sales of 42 Department Stores $ 71,3 56 Wholesale Trade—Sales of 107 Firms $ 122,656 Debits to Individual Accounts (3) $15,713,342 Deposits of All Member Banks (4): Demand $ 550,424 Time .$ 427,978 Bituminous Coal Production—Tons: Alabama 17,690 Tennessee 5,750 Pig Iron Production—Alabama—Tons.. 2,693 Active furnaces, Alabama (5) \6lA (1) (2) (3) (4) (5) $ $ $ $ 1926 932,584 176,296 518,219 1,028 23,413 $ 73,112 $ 120,729 $15,152,479 $ 72,475 $ 126,416 $15,422,373 $ 71,568 $ 144,836 $15,137,583 $ $ $ $ $ $ 593,643 463,047 17,621 5,611 2,540 17 622,434 465,326 19,766 5,783 2,777 19% 631,243 437,329 21,001 5,789 2,944 23 Total for six states: Alabama, Florida, Louisiana, Mississippi and Tennessee. Actual number of failures—000 not omitted. Debits for 1929, 1928 and 1927 are for 26 cities—1926 for 24 cities. December of each year. Average of monthly figures. RESULTS OF OPERATION OF THE FEDERAL RESERVE BANK Comparative Balance Sheets—The total resources and liabilities of the Federal Reserve Bank of Atlanta at the close of business on December 31, 1929, were larger by $11,961,000 than at the close of 1928, but were smaller than at the end of other years since 1924. Total resources and liabilities at the end of 1929 were $250,843,000, compared with $23 8,882,000 a year earlier. Total cash reserves at the close of 1929 amounted to $153,517,000, and were $25,808,000 greater than at the close of 1928. Bills discounted for member banks at the end of the year totaled $29,347,000, smaller by $11,673,000 than at the same time a year earlier. Holdings of bills bought in the open market on December 31, 1929, were $19,196,000, compared with $32,002,000 at the end of 1928, and holdings of United States Government securities amounted to $9,945,000, compared with $7,2 5 5,000 a year earlier. Total bills and securities at the end of the year were thus $58,488,000, and were smaller by $21,789,000 than at the close of 1928. Federal Reserve notes in actual circulation at the close of the year totaled $143,084,000, showing an increase of $8,118,000 over those outstanding a year earlier, and total deposits were slightly larger than at that time. On page 13 of this report are shown comparative balance sheets of the Federal Reserve Bank of Atlanta at the close of each of the past four years. Earnings and Expenses—A table presented on page 14 of this report sets forth in detail the various items of income and expenditures, followed by profit and loss statements showing the disposition of earnings of the Federal Reserve Bank for the past four years. 6 Total earnings for the year 1929 amounted to $4,116,049, an increase of $537,893 over the preceding year, and were greater than for any year since 1921. Partly because the discount rate was higher during most of the year than it was in 1928, earnings on discounted bills show an increase for 1929 of $561,448 over the preceding year and were greater than for any year since 1921. Income from bills bought in the open market was greater than for 1928 or 1927, but earnings from the smaller average holdings of United States securities were less than for any year since 1924. The cost of current operations during 1929, including the expenses incident to the preparation of Federal Reserve currency, and the cost of the redemption of unfit notes, increased $260,105, or 20.8 per cent, over the total for 1928. Omitting the cost of Federal Reserve currency, however, the other current expenses of the bank increased only $80,522, or 6.6 per cent, over those in 1928. The cost of preparing Federal Reserve currency during 1928 was abnormally low because of the pending introduction in July, 1929, of the new-size notes and a consequent reduction of stock, and cost of printing the old-sized Federal Reserve notes. In 1929 it was necessary to prepare new-size currency in volume not only to meet the replacement and current demands of the banks beginning with its introduction on July 10, but also to establish a reserve supply. Thus there was a large proportionate increase in 1929 in the cost of Federal Reserve currency over the year before, and this is largely responsible for the large increase in total expenses. Current net earnings for 1929 amounted to $2,602,810, compared with $2,325,022, for 1928, and were larger than for any other year since 1921. After deductions for depreciation on bank premises and on furniture and equipment, reserves for probable losses, self-insurance and other deductions, net earnings available for dividends, surplus and franchise tax amounted to $1,428,518. In accordance with requirements of the Federal Reserve Act, dividends were paid at the end of June and December at the rate of 6 per cent per annum, amounting to $321,696, to member banks. There was carried to surplus $303,032, and a franchise tax of $803,790 was paid to the United States Government. MOVEMENT OF PRINCIPAL ASSET AND LIABILITY ITEMS Total Bills and Securities—Because of larger holdings of purchased bills, total bills and securities held by the bank were greater on the second weekly report date in January than on any other report date during the year. From a total of 95.3 millions on January 9, there was a decline up to the middle of March due partly to a decrease in discounts, and partly to a decline in holdings of bills bought in the open market which continued at a relatively low level until the middle of August. Accompanying similar movements in the volume of discounted bills, total bills and securities increased from 64 millions on March 20 to 88.6 millions on June 5, but declined sharply to 62.8 millions on June 26, and increased irregularly to 92.7 millions on November 6, declining during the remaining weeks of the year to 58.5 millions on December 31, lower than for any other report date since April, 1928. Bills Discounted for Member Banks—The total of bills discounted for member banks in the sixth district declined up to the middle of March, but increased during the spring to the highest level of the year, at 77 millions, on June 5. Discounts declined sharply in June, but increased to 76 millions on September 4, after which there followed an irregular decline to 29.3 millions on December 31, the lowest level since April, 1928. Bills Bought in the Open Market—Holdings of purchased bills which had increased in the last three months of 1928, declined between January and early August, increased from then until October 23, and declined during the balance of the year. United States Securities—Holdings of United States securities have been in relatively small volume during the past two years, but were increased somewhat in the latter part of the year. Cash Reserves—After declining during the first four weeks of the year, cash reserves increased during February and early March as holdings of bills and securities declined; reserves declined in April and May as these holdings increased and from early June reserves increased irregularly to the highest point of the year on the last day of the year. Member Bank Reserve Deposits—Total member bank reserve deposits were larger on January 2, at 68 millions, and smaller on December 24, at 59.8 millions, than on other report dates of the year. These deposits fluctuated within a rather narrow range, but averaged higher during the first half of the year than during the latter half. Federal Reserve Notes in Actual Circulation—The volume of Federal Reserve notes in actual circulation showed the usual January decline as currency returned to the bank following the holidays, increased in February, and declined gradually to the lowest level for the year at 12 5.5 millions on June 26. The new small-size currency was introduced on July 10, and there followed a rise in notes outstanding to the highest level of the year, at 159.3 millions, on September 4, after which there were decreases shown for nearly all of the remaining report dates of the year. Reserve Position—The ratio of total cash reserves to combined deposit and Federal Reserve note liability increased from the beginning of the year to the middle of March, but decreased from then until the first week in June. The last three weeks of June witnessed a rather sharp rise, and beginning in July there was a gradual decline which continued, with some fluctuations, until November 6. The trend was definitely upward from then until the close of the year. On page 15 of this report will be found a table showing monthly averages of daily figures for the principal asset and liability items during 1929. VOLUME OF DISCOUNTS AND PURCHASES OF BILLS AND SECURITIES The total volume of discount and open market operations of the Federal Reserve Bank of Atlanta during the year 1929 was $1,504,135,000, a decrease of 0.2 per cent compared with the total of $1,507,545,000 for 1928. In these totals are included bills discounted for member banks and for Federal Intermediate Credit Banks, bills and securities purchased in the open market and from other Federal Reserve Banks, and other discount and open market transactions. Bills discounted in 1929 totaled $1,349,145,000 compared with $1,326,634,000 during 1928; bills bought in the open market amounted to $104,804,000 compared with $96,8 54,000 in 1928, and United States securities purchased in the open market and from other Federal Reserve Banks during 1929 totaled $49,071,000 compared with $60,687,000 in 1928. The monthly average number of member banks accommodated by the discount of paper in 1929 was 214, compared with 190 in 1928. VOLUME OF OPERATIONS IN PRINCIPAL DEPARTMENTS During 1929 there were filed with the Federal Reserve Bank of Atlanta 12,25 5 applications for the rediscount or discount of paper, an increase of 19.5 per cent over the preceding year, and greater than for any other year since 1923. There were accepted for rediscount or discount in 1929, 75,189 notes, amounting to $1,349,145,000, an increase of 24.3 per cent in number and of 1.7 per cent in amount over 1928. The number of notes discounted was larger than for any other year since 1923, and their value was the largest for any year since 1921. Bills purchased in the open market during 1929 numbered 6,931 and amounted to $104,804,000, a decrease of 25.2 per cent in number, but an increase of 8.2 per cent in value over purchases in 1928. During 1929, 133,934,704 pieces of currency amounting to $583,131,000 were received and counted, an increase of 9.5 per cent in number and of 8.7 per cent in amount over the year before. Coin received and counted during 1929 numbered 62,926,922 and amounted to $8,923,000, showing increases of 3.2 per cent in number and 8.2 per cent in amount over the year before. Checks handled during 1929 numbered 32,305,000 amounting to $12,182,513,000, an increase of 2.9 per cent in number and an increase of 1.7 per cent in amount compared with those handled during 1928. The number of government security coupons and other collection items handled in 1929 was 616,066, and the amount $175,602,000, a decrease of 24.7 per cent in number, but an increase of 3.7 per cent in amount, compared with those handled in 1928. Transactions in United States securities by the Fiscal Agency Department during 1929, involving issues, redemptions and exchanges, numbered 53,311 and amounted to $137,713,000, a decrease of 68.5 per cent in number and of 41.8 per cent in amount, compared with transactions in 1928. Transfers of funds during 1929 numbered 97,924, and amounted to $2,477,543,000, showing increases of 14.6 per cent in number and of 7.9 per cent in amount, compared with the previous year. OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM Transit Operations—During the year 1929 the Federal Reserve Bank of Atlanta handled 30,500,000 items (exclusive of duplications on account of items handled by both the parent bank and one or more of its branches) amounting to $11,927,337,000. These figures show increases of 1,021,000, or 3.5 per cent, in the number of items handled, and of $226,086,000, pr 1.9 per cent, in the amount, compared with figures for 1928. Increases in number occurred in all classes of items handled which include those drawn on member and par-remitting non-member banks in the sixth district, items drawn on the Federal Reserve Bank and its branches, items forwarded to other Federal Reserve Banks and their branches, and items drawn on the United States Treasurer. Clearings and Transfers through the Gold Settlement Fund—Each Federal Reserve Bank maintains with the Treasurer of the United States a Gold Settlement Fund for the purpose of settling current transactions between Federal Reserve Districts. Total payments by the Federal Reserve Bank of Atlanta to other Federal Reserve Banks through the Gold Settlement Fund during 1929, for clearings and transfers of funds, amounted to $4,463,964,000, an increase of $193,205,000 over 1928 payments. Receipts from other Federal Reserve Banks through the Gold Settlement Fund during 1929 amounted to $4,476,384,000, an increase of $240,447,000 over receipts in 1928. There was a net gain in gold for the year of $12,420,000, as compared with a net loss in 1928 amounting to $34,822,000. The net gain to the Federal Reserve Bank of Atlanta in ownership of gold since the establishment in 1915 of the Gold Settlement Fund amounted at the close of the year 1929 to $200,654,000. MOVEMENT OF MEMBERSHIP At the beginning of the year 1929, there were 377 national banks and 76 state bank members of the Federal Reserve System in the sixth district, a total of 453 members. During the year there were 12 new national banks organized in the district, but due to mergers, withdrawals, suspensions and other changes, there was a net loss of 11 in the number of national banks, and a net loss of 14 in the number of state bank members, so that the number of member banks was smaller by 25 at the end of the year than at the beginning. The table shows these figures in detail, and indicates the causes of the change's in membership which occurred during 1929. National Active member banks on January 1, 1929 New national banks organized Resumption following suspension Merger of state bank members Absorption of member by non-member Conversion of member to non-member Merger of national banks Suspensions and insolvency Absorption of state member bank by national bank Voluntary liquidation Voluntary withdrawal of state member bank Active member banks on December 31, 1929 10 377 — — | 12 -f- 1 — 1 — 4 — 16 — State Total 76 45 3 -f- 12 + 2 — 2 — 1 — 1 — 4 — 23 — 2 — 3 — 3 428 + 1 — 2 — 1 — — 7 2 — 3 62 3 366 BANK ORGANIZATION AND PERSONNEL Mr. Oscar Newton, whose term as a Class C director expired December 31, 1929, was reappointed by the Federal Reserve Board for the three-year term ending December 31, 1932. Mr. Leon C. Simon, whose term as a Class B director expired December 31, 1929, was re-elected by member banks in Group 1 for the three-year term ending December 31, 1932. Mr. G. G. Ware, whose term as a Class A director expired December 31, 1929, was re-elected by member banks in Group 3 for the three-year term ending December 31, 1932. Mr. Newton was reappointed by the Federal Reserve Board as Chairman of the Board of Directors and Federal Reserve Agent, and Mr. W. H. Kettig was reappointed Deputy Chairman, for the year 1930. Mr. J. P. Butler, Jr., of New Orleans, Louisiana, was re-elected member of the Federal Advisory Council from the Sixth Federal Reserve District for the year 1930. Mr. P. L. T. Beavers was elected an Assistant Cashier in charge of the Transit Department at the January, 1929, meeting of the Board of Directors, and at the same meeting Mr. S. P. Schuessler was elected an Assistant Cashier in charge of the Fiscal Agency Department. At the January, 1930, meeting the Board of Directors re-elected all the officers, and at that meeting Mr. L. M. Clark was elected an Assistant Cashier. The number of officers and employees of the Federal Reserve Bank of Atlanta, including its branches and agencies, on January 1, 1929, was 430, and on December 31, 1929, was 434. DEMAND ANP TIME DEPOSITS All Member Banks in Sixth District Net demand and time deposits have been reported monthly to the Federal Reserve Bank of Atlanta by all member banks in the sixth district since April, 1923. Except for declines in the summer of 1923 and 1924, which appear to have been seasonal, and other minor fluctuations, the general trend of net demand deposits rose sharply through November, 1925. Since then there has been a definite downward tendency, except for seasonal increases in the fall of each year, the low point for each year being much below that for the year before. Time deposits increased in 1923 and 1924, and sharply in 1925, fluctuating during 1926 at about the level reached in December, 1925, and rising slightly in 1927 and early in 1928 through July, since which time the trend has been downward. Figures in the table show, in millions of dollars, net demand and time deposits by months for the past four years. Demand January February March April May June _, : 11 1929 1928 1927 1926 $594 597 601 58 5 569 549 $63 5 625 621 612 607 597 $63 6 637 618 615 601 587 $760 757 727 697 668 650 July August September October November December _ : 5 39 524 537 543 545 5 50 578 5 57 551 561 570 594 575 580 600 607 611 622 640 633 634 63 5 619 631 $443 451 45 3 456 463 460 461 457 458 465 466 465 $439 439 441 446 446 444 441 444 439 442 43 8 437 Time January February March April May June July August September October November December $454 458 ____ 459 449 459 466 462 445 443 43 6 43 3 42 8 $465 461 466 467 472 472 475 472 467 469 467 463 MOVEMENT OF PRINCIPAL ASSET AND LIABILITY ITEMS OF WEEKLY REPORTING MEMBER BANKS IN SELECTED CITIES The number of weekly reporting member banks in the sixth district was reduced by consolidations and mergers from thirty-one at the beginning of 1929 to twenty-eight in December. Total loans and investments of these banks fluctuated between $642,988,000 on January 2, the high point for the year at $652,532,000 on September 25, and the lowest total for the year at $627,712,000 on December 4. Loans on securities were smaller at $141,410,000 on January 2 than on any other weekly report date, increasing to the peak for the year at $163,078,000 on October 9, and amounting at the close of the year to $153,847,000. All other loans including those for agricultural, commercial and industrial purposes, declined from $363,419,000 at the beginning of 1929 to $346,523,000 on March 6, reached the highest level at $372,8 56,000 on November 20, and closed the year at $3 56,057,000. The largest total of investments in government and other securities was $140,504,000 on June 26, and the smallest was $119,232,000 on December 4. Demand deposits of these banks were highest for the year, at $344,631,000 on March 13, and lowest, at $311,159,000, on August 28. Time deposits were greatest at midyear, when they amounted to $246,379,000, and smallest at $222,65 5,000, on December 11. Borrowings of these banks from the Federal Reserve Bank of Atlanta amounted to $34,643,000 on January 2, and after increasing to $51,712,000 on May 1, declined to $28,660,000 on June 26. The following week recorded an increase of ten millions, however, and the high point for the year was $52,98 5,000, on September 11. From this point borrowings by these banks declined and on December 31 amounted to $20,126,000, the smallest total since April, 1928. NOTE—More detailed statistics concerning the operations of the Federal Reserve Bank of Atlanta, and of member banks in the sixth district, are carried in the Annual Report which will be issued later by the Federal Reserve Board. 12 CONDITION OF FEDERAL RESERVE BANK OF ATLANTA (IN THOUSANDS OF DOLLARS) RESOURCES Dec. 31, 1929 Gold with Federal Reserve Agent $ Gold redemption fund with United States Treasury Gold held exclusively against F. R. Notes._.$ Gold settlement fund with F. R. Board Gold and gold certificates held by bank Total gold reserve $ Reserves other than gold Total reserves $ Non-reserve cash Bills discounted: Secured by U. S. Government obligations.—$ Other bills discounted Total bills discounted $ Bills bought in open market U. S. Government securities: Bonds $ Treasury notes Certificates and bills Total U. S. Government securities $ Other securites Total bills and securities _$ Uncollected items Bank premises All other resources Total resources Dec. 31, 1928 Dec. 31, 1927 Dec. 31, 1926 96,577 $ 145,772 $ 140,13 5 2,669 3,974 129,549 $ 100,351 5,604 12,8 56 4,43 8 5,139 139,591 $ 118,346 13,926 9,363 153,517 $ 127,709 5,559 4,178 1,688 $ 147,460 11,791 8,078 $ 167,329 11,946 $ 179,275 4,371 3,104 $ 143,239 21,707 4,311 $ 169,257 9,370 $ 178,627 4,476 $ $ 126,880 $ 2,680 26,667 29,347 19,196 $ 1,173 3,377 5,395 9,945 $ $ 9,467 31,553 41,020 32,002 $ $ 1,113 35,563 36,676 23,172 58,488 $ 80,277 $ 5,971 $ 352 893 1,533 6,721 13,5 8 5 $ 1,890 260 44,286 $ 61,738 26,748 2,658 3,873 $ 250,843 $ 22,454 2,744 1,520 $ 238,882 $ 26,545 2,823 1,361 $ 258,662 $ $ 143,084 $ 134,966 $ $ . 62,895 2,485 219 164 63,385 1,944 273 140 .$ 65,765 $ 23,907 5,3 84 10,8 57 1,848 $ 250,843 $ _$ $ 1,564 $ 4,311 1,380 7,2 5 5 $ 8,053 20,149 28,202 2,238 30,385 2,864 1,021 $ 279,111 LIABILITIES F. R. Notes in actual circulation Deposits: Member bank-reserve account Government Foreign banks O t h e r deposits Total deposits Deferred availability items Capital paid in Surplus All other liabilities Total liabilities Ratio of total reserves to deposit and Federal reserve note liabilities combined (per cent) Contingent liability on bills purchased for foreign correspondents $ $ 13 21,320 73,243 1,532 190 170 65,742 $ 21,361 5,231 10,5 54 1,028 $ 238,882 $ 73.5 13,567 $ 23,981 5,175 9,996 278 $ 258,662 $ 9,380 71,413 26,847 5,020 9,632 372 $ 279,111 81.8 $ 165,827 66,742 2,613 1,126 93_2 75,135 63.6 $ 144,097 75.3 $ 2,258 EARNINGS AND EXPENSES OF THE FEDERAL RESERVE BANK OF ATLANTA EARNINGS Discounted bills Purchased bills United States securities Deficient reserve penalties Miscellaneous Total earnings 1929 $3,091,399 716,782 171,667 39,73 5 9 6,4 6 6 _ $4,116,049 CURRENT EXPENSES Salaries: Bank Officers $ 2 31,917 Clerical Staff 419,257 Special Officers 44,675 All Other 3 8,788 Governor's Conferences 280 Federal Reserve Agents' Conferences 102 Federal Advisory Council 1,43 8 Directors' Meetings 24,3 58 Traveling Expenses (1) 19,006 Assessments for Federal Reserve Board expenses 30,499 Legal Fees 8,186 Insurance (other than on currency and security shipments) 24,758 Insurance on currency and security shipments 42,624 Taxes on banking house 64,152 Light, heat and power 15,393 Repairs and alterations, banking house 8,501 Rent 5,3 79 Office and other supplies 26,317 Printing and stationery 29,511 Telephone 7,878 Telegraph 70,674 Postage 113,970 Expressage 42,505 Miscellaneous . 3 6,219 Total exclusive of cost of currency $1,306,387 Federal reserve currency, including shipping charges: Original cost $ 199,393 Cost of redemption 7,459 Total current expenses $1,513,239 1928 1927 1926 $2,529,951 687,533 245,502 32,996 82,174 $1,254,629 332,593 290,218 25,900 164,499 $1,705,117 1,024,830 228,280 41,636 46,004 $3,578,156 $2,067,839 $3,045,867 ( 207,184 405,562 36,511 37,656 398 67 1,089 22,651 19,368 28,590 11,323 $ 201,992 408,533 35,217 39,408 282 136 945 23,243 17,582 32,177 9,144 $ 24,374 35,600 61,045 15,182 18,891 6,120 21,659 30,321 6,243 64,419 99,074 36,918 3 5,620 $1,225,865 21,474 33,167 57,429 13,949 7,013 5,626 20,482 29,354 6,159 63,635 99,785 31,692 36,966 $1,195,390 20,826 47,398 54,987 13,600 4,234 9,48 5 23,556 31,565 6,123 70,499 104,296 33,437 32,767 $1,228,850 19,914 7,3 5 5 59,861 8,905 $ 191,016 418,096 31,426 38,253 255 129 892 24,602 32,994 28,686 9,728 148,763 11,555 $1,253,134 $1,264,156 $1,389,168 $3,578,156 1,253,134 $2,067,839 1,264,156 $3,045,867 1,389,168 $2,602,810 $2,325,022 $ 803,683 $1,656,699 $ 5,360 $ 5,462 $ 956 $ 85,828 38,22 5 696,500 - 359,099 $1,179,652 $ 85,673 49,980 403,018 97,829 $ 636,500 $ 85,008 48,460 PROFIT AND LOSS ACCOUNT Earnings Current expenses Current net earnings Additions to current net earnings Deductions from current net earnings: Bank premises—depreciation Furniture and equipment Reserve for probable losses All other Total deductions $4,116,049 1,513,239 $ 14 1,267 $ 134,735 12,794 $ 151,341 24,313 261,663 3,849 $ 441,166 Net earnings available for dividends, surplus and franchise tax $1,428,518 $1,693,985 $ 669,904 $1,228,327 Dividends paid Transferred to surplus account Franchise tax paid U. S. Government $ 321,696 303,032 803,790 $ 312,259 558,425 823,301 $ 305,817 364,087 $ 296,573 931,754 REIMBURSABLE FISCAL AGENCY EXPENSES Salaries All Other , Total $ $ $ $ 5,130 $ 1,23 5 6,365 $ 5,289 2,321 7,610 $ 5,220 2,886 8,106 5,209 897 6,106 $ (1) Other than those connected with governors' and agents' conferences and meetings of directors and of the advisory council. FEDERAL RESERVE BANK OF ATLANTA—1929 Monthly averages of daily figures—in millions HOLDINGS OF BILLS AND SECURITIES Bills Bills Discounted Bought Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. 59 $6 52 64 73 66 69 75 70 58 $9 43 28 21 13 9 8 8 6 6 13 23 23 19 U.S. Securities 5 4 4 4 3 4 3 3 3 4 8 9 Total Bills Cash F. R. Note and Securities Reserves Circulation 92 81 68 77 85 77 78 84 86 85 91 71 15 114 126 146 133 120 125 133 135 139 142 133 149 130 130 138 135 133 129 141 153 157 155 154 148 Member Bank Reserve Deposits Reserve Ratio 67 68 68 66 65 63 62 60 61 62 61 63 57.2 63.3 70.4 65.6 60.5 64.1 64.8 62.7 62.4 57.0 61.2 70.1 VOLUME OF OPERATIONS IN PRINCIPAL DEPARTMENTS FEDERAL RESERVE BANK OF ATLANTA Number of Pieces Handled 1929 1928 1927 1926 Bills discounted: Applications Notes discounted Bills purchased in open market for own accountCurrency received and counted Coin received and counted. Checks handled Collection items handled: U. S. Gov't coupons paid.. All other U. S. securities—issues, redemptions and exchanges by Fiscal Agency department Transfers of funds 12.2J5 75,189 10,2 59 60,473 7,110 47,15 5 9,111 59,674 6,931 9,268 5,828 8,030 133,934,704 62,926,922 32,305,000 122,279,626 60,994,041 31,384,000 121,378,000 61,760,000 31,904,000 130,465,000 63,931,000 31,575,000 452,395 163,671 663,108 154,739 827,000 15 8,000 903,000 15 6,000 53,311 97,924 169,416 8 5,470 138,000 76,000 103,000 74,000 Amounts Handled Bills discounted $ 1,349,145,000 $ 1,326,634,000 $ 667,521,000 $ 810,592,000 Bills purchased in open market for own account104,804,000 96,854,000 63,315,000 99,201,000 Currency received and counted 583,131,000 536,362,000 538,462,000 652,774,000 Coin received and counted. 8,923,000 8,249,000 8,250,000 9,105,000 Checks handled 12,182,513,000 11,975,832,000 12,360,424,000 13,673,722,000 Collection items handled: U. S. Gov't coupons paid 6,371,000 6,074,000 6,737,000 8,020,000 All other 169,231,000 163,213,000 166,884,000 186,561,000 U. S. securities—issues, redemptions and exchanges by Fiscal Agency department 137,713,000 236,759,000 173,076,000 61,563,000 Transfers of funds 2,477,543,000 2,296,725,000 2,281,756,000 2,249,153,000 16
@FedFRASER