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SEVENTEENTH ANNUAL REPORT OF THE
FEDERAL RESERVE BANK OF ATLANTA










SEVENTEENTH
ANNUAL REPORT
OF THE

FEDERAL RESERVE BANK
OF ATLANTA

1

93l

ATLANTA. GEORGIA




DIRECTORS AND OFFICERS
FOR 1932
FEDERAL RESERVE BANK OF ATLANTA
DIRECTORS
OSCAR NEWTON, Chairman,

E. C. MELVIN, Selma, Ala.

Atlanta, Ga.

G . G.

W. H. KETTIG, Deputy Chairman,

Birmingham, Ala.

WARE, Leesburg, Fla.

LEON

Q SIMON, New Orleans, La.

T

. , , ,-,

—
.

„

J. A. MCCRARY, Decatur, Ga.
. „ „
«
XT . ...

GEO. S. HARRIS, Atlanta, Ga.

J. B. HILL, Nashville, Tenn.

H. LANE YOUNG, Atlanta, Ga.

OFFICERS
E. R. BLACK, Governor

OSCAR NEWTON, Chairman of the

W. S. JOHNS, Deputy Governor
H. F. CONNIFF, Deputy Governor
m o %.* T
W. S. McLARrN, J T Assistant DeputyJ
JR., A • ± J T - W J J
„
Governor
1 w B
1
o L.

Board and
federal Reserve Agent
WARD ALBERTSON, Assistant Federal
Agent
,Reserve *, „ . and Secretary 'of
_
*
the Board,of Directors

E. P. PARIS, General Auditor

M. W. BELL, Cashier

„ . „
. . . . „ ,.
R. A. SIMS, 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

J. W. HONOUR, Assistant Auditor

JOHN K. OTTLEY, Atlanta, Ga.

Member of Federal Advisory Council
ROBERT S. PARKER, Atlanta, Ga.

General Counsel

NEW ORLEANS BRANCH
DIRECTORS
LEON C. SIMON, Chairman,

New Orleans, La.

OFFICERS
MARCUS WALKER, Managing Director

j . A . ^ A L K E R j Assistant Manager

MARCUS WALKER, New Orleans, La.

\^_ n

R. S. HECHT, New Orleans, La.
P. H. SAUNDERS, New Orleans, La.
F. W. FOOTE, Hattiesburg, Miss.

F . C . VASTERLING,

A. P. BUSH, Mobile, Ala.
J. D. O'KEEFE, New Orleans, La.




BLACK Cashier

Assistant Cashier
^ . E . MILLER, Assistant Auditor

BIRMINGHAM BRANCH
DIRECTORS
W. H. KETTIG, Chairman,

Birmingham, Ala.
ALEX E. WALKER, Birmingham, Ala.

OFFICERS
ALEX E. WALKER, Managing Director
H. J. URQUHART, Cashier

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
FULTON SAUSSY, Chairman,

Jacksonville, Fla.
HUGH FOSTER, Jacksonville, Fla.

HUGH FOSTER, Managing Director
GEO. S. VARDEMAN, JR., Cashier
MARY E. MAHON, Assistant Cashier

S. O. CHASE, Sanford, Fla.
JNO. C. COOPER, Jacksonville, Fla.
EDW. W. LANE, Jacksonville, Fla
ARTHUR F. PERRY, Jacksonville, Fla.

G. G. WARE, Leesburg, Fla.

NASHVILLE BRANCH
OFFICERS

DIRECTORS
J. B. HILL, Chairman, Nashville, Tenn.
JOEL B. FORT, JR., Nashville, Tenn.

JOEL B. FORT, JR., Managing Director
E. R. HARRISON, Cashier

C. A. CRAIG, Nashville, Tenn.

L. W. STARR, Assistant Cashier

FRANK J. HARLE, Cleveland, Tenn.
PAUL M. DAVIS, Nashville, Tenn.

WM. P. RIDLEY, Columbia, Tenn.
C. W. BAILEY, Clarksville, Tenn.

SAVANNAH AGENCY
J. H. BOWDEN, Manager

JAS. A. GOETHE, Assistant Manager

HAVANA AGENCY
H. C. FRAZER, Manager




A. H. ALSTON, Assistant Manager

LETTER OF TRANSMITTAL

Atlanta, Ga., February 11, 1932.
Sirs:
I have the honor to submit herewith
the Seventeenth Annual Report of the
Federal Reserve Bank of Atlanta, covering the year 1931.
Respectfully,
OSCAR NEWTON,
Chairman of the Board and
Federal Reserve Agent

Federal Reserve Board,
Washington, D. C.




GENERAL BUSINESS CONDITIONS
Agricultural production during 1931 in the six states comprising the Sixth
Federal Reserve District increased substantially over 1930 and 1929, although
total crop values were lower, and other available statistical evidence for 1931
discloses unfavorable comparisons with 1930 in business and industry in the
district, with the exception of a small gain in textile activity, and these
statistical comparisons are accentuated by the continued, important decline
in prices of commodities.
The total dollar volume of sales during 1931 reported to the Federal
Reserve Bank of Atlanta by 41 department stores located in 23 cities of the
district, was $58,571,000, a decline of 11.8 per cent compared with 1930,
and smaller than in other recent years. Wholesale firms in eight different
lines of trade reported sales amounting to $79,449,000, during 1931, a
decline of 23.5 per cent from 1930. The decreases for individual reporting
lines of wholesale trade ranged from 11.6 per cent in stationery to 28 per
cent in shoes. There was a decline of 18.5 per cent in the volume of sales
of new, paid-for, ordinary life insurance in the six states of the district
from 1930 to 1931. The number of business failures in the district during
1931 increased 21.3 per cent, but, because of a large total for December
1930, liabilities of these firms were smaller by 37.2 per cent than in 1930.
From the standpoint of agriculture, the year 1931 may be described as
one of increased production, accompanied by low and declining prices. The
total value of the principal agricultural crops produced in the six states of this
district during 1931, compiled by the United States Department of Agriculture, was $546,778,000, a decline of 30.5 per cent compared with the year
before, and slightly less than half the total value of such crops in 1929. The
1931 total is based upon December 1 prices which average about 36 per cent
below those prevailing on December 1, 1930, when they had already declined
about 24 per cent from December 1, 1929.
The volume of production of most of the principal crops produced in these
six states increased, some of them very materially, over 1930 and over 1929,
but because of this continued decline in prices crop values were smaller than
in either of those years except for a few crops. This contrast between increased production and lower crop values is set out in the following percentage
comparisons of combined totals for these six states:
1931 Compared with 1930
Production
Values

Cotton
Corn
Oats
Wheat
Hay
White Potatoes
Sweet Potatoes
Peanuts




+
6.9
- j - 51.4
+87.3
+102.7
+ 49.0
+48.8
+
5.8
+ 20.8

—3 5.6*
—32.0
+13.7
+32.9
—12.8
— 1 9 .g
—27.1
—3 5.2
7

1931 Compared with 1929
Production
Values

+
1.8
+
8.8
+55.9
+ 74.6
+ 10.7
+53.8
— 16.1
+ 19.8

—63.4*
—50.9
—15.6
—11.9
—32.0
—17.3
—44.3
—39.4

1931 Compared with 193 0
Production
Values

Pecans
Apples
Peaches
Oranges
Grapefruit
Tobacco
Sugar Cane
Rice

1931 Compared with 1929
Production
Values

+ 29.7
+107.8
+ 86.0
— 20.0
—31.3
— 19.2
— 11.0
— 10.2

+116.7
+15 5.5
+136.0
+ 66.4
+34.1
— 9.4
— 19.4
— 8.7

—31.0
+7.5
—10.7
—28.4
—46.5
—46.2
—10.0
—25.6

— 5.1
—8.1
+10.6
— 6.7
—32.9
—58.4
—27.9
—42.5

"Includes seed
The consumption of fertilizer in these six states, as reflected in sales of
fertilizer tax tags by state authorities, declined 31.1 per cent from 1930 to 1931.
The volume of debits to individual accounts at 26 clearing house centers
of the sixth district declined 18 per cent in 1931 compared with the year before,
and was smaller than for other recent years. Demand and time deposits of all
member banks in the district averaged 16.2 per cent, and 10.2 per cent,
respectively, smaller than a year earlier.
Building and construction activities were at a much lower level in 1931
than in other recent years, building permits issued at 20 reporting cities being
32.6 per cent, and contract awards in the district as a whole 25.8 per cent, less
than in 1930. Residential contracts, which in 1931 accounted for 16.8 per
cent of the year's total, declined 36.9 per cent, and other contracts declined 23.1
per cent, from 1930.
There was a small increase in textile activity during 1931 in those
states for which figures are available. Consumption of cotton in Georgia, Alabama and Tennessee combined was slightly larger than in 1930, and the combined totals of active cotton spindle hours reported for Georgia, Alabama, Tennessee and Mississippi increased 4.7 per cent in 1931 over the year before,
although there was a decrease of 2.7 per cent in the monthly average of the
number of spindles active in those states.
The unusually mild weather during the past autumn and winter season
contributed to other causes of a decrease in the production of bituminous coal in
Alabama amounting to 24.2 per cent, and in Tennessee amounting to 16.9
per cent.
Production of pig iron in Alabama, which declined 13 per cent from 1929
to 1930, decreased further by 28.6 per cent in 1931, and the average number
of furnaces active was 28.6 per cent smaller than in 1930.
Receipts of both turpentine and rosin at the three principal markets of
the district were smaller than a year ago but stocks of both commodities
have been larger than for other recent years and prices have been unsatisfactory.
Production of electric power by public utility power plants in the
six states of the district declined 2.3 per cent in 1931, following gains
recorded in other recent years. Because of the continued dry weather,
there was an important shift in the production of current from water power to
the use of fuels in October and November and the proportion of the total pro-




duced by water power which was 63.2 per cent for 1930, 62.9 per cent in 1929
and 63.8 per cent in 1928, declined in 1931 to 59.5 per cent.
Principal business indicators relating to the sixth district are summarized
in the table following.
(000 omitted)
1930
1931
Retail Trade—Sales of 41 Department
66,388
Stares
$
58,571
103,893
Wholesale Trade—Sales of 117 F i r m s . . . $
79,449
473,987
Life Insurance Sales (1)
$ 386,118
1,400
Commercial Failures—Number (2)
1,698
49,809
Liabilities
$
31,258
Value of Principal Crops (1)
$
546,778 $ 786,200
Sales of Fertilizer Tax Tags, Short Tons
2,811
(1)
1,936
Debits to Individual Accounts—26 Cities. $10,801,714 $13,169,681
Deposits of All Member Banks (3 ) :
Demand
_
$ 417,991 $ 498,707
Time
$ 371,425 $ 413,822
43,601
Building Permits Issued at 20 Cities
$
29,393 $
Building and Construction
Contracts
Awarded in Sixth District—Total.. $
172,862 $ 233,119
Residential Contracts
$
29,047
46,002
187,117
All Others
$
143,815
1,658
Consumption of Cotton—Bales (5)
1,659
5,362
Cotton Spindles Active (4) (6)
5,215
16,875,054
Active Cotton Spindle Hours (6)
17,664,125
Bituminous Coal Production—Tons:
15,570
Alabama
11,620
5,130
Tennessee
4,170
Pig Iron Production—Alabama—Tons. . .
1,673
2,343
Active Furnaces—Alabama—(4)
10
14
Naval Stores: (7) Receipts: Turpentine.
33 5
388
Rosin
1,176
1,332
Stocks ( 3 ) : Turpentine. .
112
85
372
Rosin
487
Production of Electric Power for Public
5,855,106
Use ( 1 ) : k. w. hours—Total
5,721,769
By Use of Water Power
3,404,664
3,698,323
2,156,783
By Use of Fuels
2,317,105

1928

1929

$
$
$

71,063
126,618
521,228
1,205

$
$
$

72,033
125,063
508,422
1,547

25,145
$
$ 1,120,734

32,896
$
$ 1,073,090

2,616
$15,713,342

2,661
$15,152,479

$
$
$

550,424
427,978
72,322

$
$
$

$

328,594

$

330,878

$
$

76,461
252,133
2,058
5,424
20,500,233

$
$

106,687
224,191
1,879
5,233
18,839,132

17,944
5,406
2,693

593,646
463,047
108,075

17,621
5,621
2,540

386

17
340

1,387

1,199

68
258

90
272

5,703,403
3,585,587
2,117,816

5,139,877
3,279,269
1,860,608

16/a

(1) Combined totals for six states: Alabama, Florida, Georgia, Louisiana, Mississippi and Tennessee. (Parts of Tennessee, Louisiana and Mississippi are situated in other Federal
Reserve Districts).
(2) Actual number of failures—000 not omitted.
(3) December of each year.
(4) Average of monthly figures.
(5) Combined totals for Georgia, Alabama and Tennessee.
(6) Combined totals for Georgia, Alabama, Tennessee and Mississippi.
(7) Combined totals for Savannah, Jacksonville and Pensacola. Turpentine in barrels of 50
gallons, Rosin in barrels of 500 pounds.




RESULTS OF OPERATION
OF THE

FEDERAL RESERVE BANK
Comparative Balance Sheets—The total resources of the Federal Reserve
Bank of Atlanta amounted on December 31, 1931, to $201,896,000, and were
smaller by $26,206,000 than the total of $228,102,000 on the corresponding
date a year earlier, and were also smaller than at the close of any other year since
1917. Gold deposited with the Federal Reserve Agent amounted on December
31 to $91,800,000, compared with $129,900,000 at the end of December 1930,
and the gold redemption fund with the United States Treasury amounted at the
close of 1931 to $2,72 5,000, against $2,237,000 a year earlier. Gold held
exclusively against Federal Reserve notes issued by the Federal Reserve Bank
of Atlanta amounted, therefore, on December 31, 1931, to $94,525,000, as
compared with $132,137,000 so held a year earlier. Total gold reserves at the
end of 1931, consisting of this amount held exclusively against Federal Reserve
notes plus the gold settlement fund maintained with the Federal Reserve
Board and gold coin and certificates held by the bank, amounted to
$109,561,000, as compared with $150,847,000 at the close of December 1930.
Reserves other than gold declined slightly compared with those a year ago, and
total cash reserves on December 31, 1931, were $115,622,000 against
$159,425,000 on December 31, 1930. Holdings of discounted bills on December
31, 1931, totaled $34,902,000, larger by $16,834,000 than on the same date a
year earlier, and slightly larger than at the close of 1929. Discounts secured
by United States Government obligations, and "Other Bills Discounted" were
larger than at the close of either of the two previous years, but somewhat
below those at the end of 1928. Holdings of bills and acceptances purchased
in the open market were, at the end of 1931, $13,23 5,000, and were smaller
than at the close of other recent years. United States Government securities
were held at the end of 1931 in total amount of $13,938,000, as compared with
$7,877,000 a year earlier, and were greater than similar holdings at the end of
any year since 1925. Total holdings of bills and securities on December 31,
1931, amounted to $62,925,000, larger by $20,624,000 than at the close of
1930, and $4,437,000 larger than at the end of 1929, but smaller than for
1928. Federal Reserve notes of this bank were in actual circulation to the
extent of $120,626,000, a decline of $13,228,000 compared with actual circulation on December 31, 1930, and smaller than for that date of any other year
since 1917. Member bank reserve deposits, and total deposits, were somewhat
less at the close of 1931 than a year earlier, and were smaller than at the end
of other recent years. On page 18 of this report is a table setting forth detailed
figures in the balance sheets of the Federal Reserve Bank of Atlanta at the end
of the past four years.
Earnings and Expenses—A table presented on page 19 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 of Atlanta, for the past four years.
Total earnings during the year 1931 amounted to $1,448,83 5, smaller by
26.2 per cent than in 1930, and less than for any other year since 1917. The




10

decline in earnings from 1930 to 1931 was due partly to the fact a lower discount rate was in effect during most of the year, and in part also to the decline
of 12.7 per cent in the volume of discounts and to the decline of 15.4 per cent
in the volume of paper purchased. The volume of United States securities purchased during 1931 was somewhat larger than in 1930, but earnings from this
source declined 5.4 per cent.
The cost of current operations of the Federal Reserve Bank during 1931,
including the costs of issue and redemption of its Federal Reserve notes,
amounted to $1,268,776, a decrease of 7.6 per cent from 1930. The table on
page 19 will show that reductions were possible during 1931 in nearly all of the
different classifications of current expenses, compared with the year before.
Current net earnings for the year (total earnings less total current expenses) amounted to only $180,059. There were miscellaneous additions to
current net earnings amounting to $45,598. These combined amounts were
sufficient to provide for depreciation on bank premises, and on furniture and
equipment, reserve for probable losses and other minor deductions, but it was
necessary to make a charge against surplus account covering dividends paid
during the year and depreciation on United States securities. This reduced the
surplus account from $10,857,310, to $10,448,658 on December 31, 1931. As
was the case in 1930, no franchise tax was paid to the United States Government for 1931.

MOVEMENT OF PRINCIPAL ASSET AND
LIABILITY ITEMS
Total Bills and Securities—The average volume of reserve bank credit outstanding at the Federal Reserve Bank of Atlanta during the year 1931, as indicated by its total holdings of bills and securities, was slightly greater than during 1930. This was due, not to a constant demand for reserve bank credit
greater than in 1930 on the part of member banks extended throughout the
year, but to a material increase in this demand during the latter part of the
year, both by the discount of paper for member banks and the purchase of
acceptances in the open market. Total bills and securities held by this bank
declined from 46.5 millions of dollars on January 7, the first weekly report
date in 1931, to 28.3 millions on April 15, the lowest point reached in six
years. From this level there were increases during the next five months
which brought the total to 56.1 millions on September 23, followed by
sharp gains to 104.4 millions on October 21, the highest level for the year, and
higher than for any other Wednesday since October 31, 1928. This total
declined, however, from 103.8 millions on December 2 to 71.4 millions on
December 30, the last report date in 1931, compared with 42.3 millions at the
close of 1930.
Bills Discounted for Member Banks—The volume of bills actually discounted for member banks by the Federal Reserve Bank of Atlanta declined
from 52.2 millions in January to 8.6 millions in April, and holdings of discounted bills declined from 22.7 millions on January 7 to approximately 9.8
millions on April 15, the lowest level for any report date in a number of years.
Between that time and the middle of July there were minor fluctuations, but
beginning the latter part of July there were increases to the high point for the




11

year, at 58.1 millions, on December 2, followed by a decline to 45.5 millions on
December 30.
Bills Bought in the Open Market—Holdings of bills bought in the open
market declined from 16.1 millions on January 7 to 4.8 millions on February 11.
By May 6 these holdings increased to 10.3 millions, but declined to the low point
for 1931, at 3.3 millions, on September 16. During the next five weeks there
were sharp gains to the highest point, at 40.4 millions, on October 21, followed
by gradual reductions of these holdings to 12.4 millions on December 30.
United States Securities—Average holdings of United States securities by
this bank were 65.3 per cent greater during 1931 than in 1930. They were
greater for each month, except January and February, than for the corresponding month a year earlier.
Cash Reserves—The movement of cash reserves during 1931 was approximately the opposite of the movement of total bills and securities. Reserves increased from January through April 15, and declined from that time through
October 21, but increased substantially from December 2 to December 30.
Member Bank Reserve Deposits—Fluctuations in member bank reserves
were not great during 1931. They amounted on January 7 to 60.6 millions,
reached their highest level of the year at 62.9 millions on April 29, declined
to 47.3 millions, the low point, on December 23, but were 54.9 millions on
December 30.
Federal Reserve Notes in Actual Circulation—Federal Reserve notes of this
bank in actual circulation are those which have been issued to the bank by the
Federal Reserve Agent less the amounts held by the bank, its branches and
agencies. At the beginning of 1931 there were 134 millions of these notes in
actual circulation. Following an increase to 13 5.1 millions on January 21, there
was a rather steady, though small, decline to the low point at 111.6 millions, on
September 23, and at the close of the year the total amount outstanding was
120.4 millions.
Reserve Position—The reserve ratio is the percentage relation which total
reserves bear to liabilities of the bank in the form of deposits and Federal Reserve
notes, combined. This reserve ratio on January 7 was 78.5, increased to 88.5,
the highest point for 1931, on April 15, declined to 45.1, the low point, on
December 2, and at the close of the year was 64.0.
On page 21 of this report will be found a table showing monthly averages
of daily figures for the principal asset and liability items during 1931, as compared with 1930.

VOLUME OF DISCOUNTS AND PURCHASES OF
BILLS AND SECURITIES
The total volume of bills discounted, re-discounted, and purchased, and
United States securities bought, and other investment operations of the Federal
Reserve Bank of Atlanta during the year 1931 amounted to $634,994,000,
smaller by $76,043,000 than the total for 1930, and less than half as large as
in 1929 or 1928.
Discounts for member banks during 1931 totaled $442,071,000, as compared with $510,780,000 during 1930. In addition to its services to member




12

banks, the Federal Reserve Banks are authorized by law to discount for nonmember banks notes of veterans of the World War secured by adjusted service
certificates, and also to discount paper for Federal Intermediate Credit Banks
under certain conditions. Discounts for non-member banks of veterans' notes
secured by adjusted service certificates during 1931 amounted to $31,567.00,
as compared with $62,019.00 during 1930, and discounts for Federal Intermediate Credit Banks during 1931 totaled $8,528,515, as against $5,151,250
during 1930. Total discounts, therefore, during 1931 amounted to $450,631,000, a decline of 12.7 per cent compared with the total of $515,993,000
during 1930, and approximately one-third the amounts for 1929 or 1928.
The monthly average number of member banks accommodated by the discount
of paper during 1931 was 157, as compared with an average of 182 for 1930,
and with 214 for 1929 and 190 for 1928.
During 1931 the Federal Reserve Bank of Atlanta purchased directly in
the open market and through other Federal Reserve Banks, paper amounting to
$107,631,000, and $5,006,000 of paper was bought from other Federal Reserve
Banks, a total of purchases amounting to $112,637,000, against a similar total
for 1930 amounting to $133,071,000.
United States Government securities were purchased in the open market
directly amounting to $17,037,500 during 1931, and its participation in purchases by the System's Special Investment Committee amounted to $38,811,000, and $13,854,500 of government securities were purchased from other
Federal Reserve Banks, making total purchases of government securities amount
to $69,703,000, an increase of 15.9 per cent over the total of $60,127,000
for 1930, and somewhat larger than for other recent years. Purchases of
Federal Intermediate Credit Bank debentures, investments through foreign
banks, foreign loans on gold, and other miscellaneous investment operations
were in somewhat larger volume than in other recent years.

VOLUME OF OPERATIONS IN PRINCIPAL
DEPARTMENTS
During the year 1931 the Federal Reserve Bank of Atlanta received 11,378
applications for the discount or rediscount of paper. This total represents an
increase of 12.7 per cent in the number of applications, over those received
in 1930.
There were accepted during 1931 for discount or rediscount 64,502 notes
amounting to $450,631,000, a gain of 1.9 per cent in number, but a decrease
of 12.7 per cent in amount, compared with corresponding totals for 1930.
Bills bought in the open market during 1931 numbered 7,625, and
amounted to $107,631,000, a decrease of 12 per cent in number, and a decline
of 13.4 per cent in amount, compared with purchases during 1930.
During 1931 there were received and counted 117,567,242 pieces of currency amounting to $465,3 56,000, a decrease of 6.7 per cent in number and a
decline of 17.5 per cent in amount, compared with 1930, and coin received and
counted during 1931 numbered 66,269,794 pieces, amounting to $10,637,000,
decreases of 6.5 per cent in number and 16.8 per cent in amount, compared
with the year before.




13

Checks handled during 1931 numbered 28,940,900, and amounted in value
to $8,227,498,000, smaller by 8.1 per cent and 21.1 per cent, respectively,
than checks handled during the year 1930.
The number of government security coupons and other collection items
handled during 1931 was 568,892, and the amount $143,695,000, smaller by
1.5 per cent and 6.3 per cent, respectively, than those handled during 1930.
Transactions in United States securities by the Fiscal Agency Department
during 1931, involving issues, redemptions, and exchanges, numbered 54,497,
and amounted in value to $292,631,807, and were larger by 56.2 per cent in
number and 96.5 per cent in value, than those handled during the year before.
Transfers of funds during 1931 numbered 73,889, and amounted in value
to $2,110,001,000, and were smaller by 12.6 per cent in number and 17.7 per
cent in amount, than in 1930.

OPERATIONS OF THE FEDERAL RESERVE
CLEARING SYSTEM
Transit Operations—During the year 1931 the Federal Reserve Bank of
Atlanta and its branches handled 27,808,000 items (not including duplications
on account of items handled by both the parent bank and one or more of its
branches), amounting to $8,125,859,000. The number of items handled was
smaller by 2,166,000, or 7.2 per cent, and the amount was less by $2,160,014,000 or 21.0 per cent, than those handled during the year 1930, and both
number and amount are smaller than for other recent years.
Items drawn on member banks, and on par-remitting non-member banks
in the sixth district, declined 11.1 per cent in number and 22.8 per cent in
amount, from 1930 to 1931. Items drawn on the Federal Reserve Bank of
Atlanta and its branches decreased 4.3 per cent in number and 20.6 per cent in
amount in 1931 as compared with 1930, and items forwarded to other Federal
Reserve Banks and their branches declined 3.3 per cent in number and 32 per
cent in amount as compared with similar items handled in 1930. The number
of items handled during 1931 which were drawn on the United States Treasurer,
however, increased 30.2 per cent in number and 49.4 per cent in amount over
those handled in 1930, and were also greater in both number and amount than
similar items handled in other recent years.
Clearings and Transfers through the Gold Settlement Fund—Each Federal
Reserve Bank maintains with the Federal Reserve Board a Gold Settlement Fund
for the purpose of expediting the settlement of 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 the year 1931, for clearings and transfers of funds, amounted to $3,438,8 53,000, and total receipts from other Federal Reserve Banks through this
fund during 1931 amounted to $3,3 58,203,000. Payments for the year 1931
were $860,361,000 smaller, and receipts were $895,293,000 less, than in 1930.
For the year, payments exceeded receipts by $80,650,000, resulting in a net
loss of this amount in the Gold Settlement Fund. In 1930 there was a net loss
of $45,218,000.




14

MOVEMENT OF MEMBERSHIP
At the beginning of the year 1931 there were 341 national banks and 49
state bank members of the Federal Reserve System in the sixth district, a total
of 390 member banks. During the year there were two new national banks
organized in the district, two national banks which had suspended resumed
operations, and two state banks were admitted to membership in the System.
However, there were numerous other changes in membership during 1931,
due to consolidations, withdrawals and suspensions, and the net losses for the
year were 37 in the number of national banks, and 5 in the number of state
bank members, a total reduction in the number of member banks in this
district of 42. During 1930 there was a decrease of 38 in the number of
members in the sixth district. Changes in membership, and indications of the
causes, are set out in detail in the table which follows.
National
Active member banks on January 1, 1931

,

State

341

Additions to membership
New national banks organized
Resumption following suspension
State banks admitted to membership

+ 2
+ 2

Losses in membership
Consolidation of national bank with state member bank
Consolidation of member bank with non-member state bank.
Consolidation of national banks
Voluntary withdrawal of state member bank
Suspension and insolvency
Active member banks on December 31, 1931

—
—
—

2
5
304

390

49

4
1
1

,

Total

+ 2

1

—
—

2
5
44

+ 2
+2
2

+
—
—
—
—
—

1
4
1
1
2
30
348

BANK ORGANIZATION AND PERSONNEL
E. C. Melvin, whose term as a Class A director expired December 31, 1931,
was re-elected by member banks in Group 2 for the three-year term ending
December 31, 1934.
J. B. Hill, whose term as a Class B director expired December 31, 1931,
was re-elected by member banks in Group 3 for the three-year term ending
December 31, 1934.
W. H. Kettig, whose term as a Class C director expired December 31, 1931,
was re-appointed by the Federal Reserve Board for the three-year term ending
December 31, 1934.
Oscar Newton was re-appointed by the Federal Reserve Board as Chairman
of the Board of Directors and Federal Reserve Agent, and W. H. Kettig was
re-appointed Deputy Chairman.
At the January meeting of the Board of Directors all of the officers were
re-elected to serve during the year 1932.
The number of officers and employees of the Federal Reserve Bank of
Atlanta, including its branches and agencies, on January 1, 1931, was 422, and
on December 31, 1931, was 401, not including 9 and 4 temporary employees
on those respective dates.




15

DEMAND AND TIME DEPOSITS
All Member Banks in the 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. There was a sharp
decline during the first eight months of 1926, and in the three succeeding
years demand deposits were at their highest point in January, February or
March, and the declines which extended through July in 1927, through September in 1928, and through August in 1929, were followed by increases in
the fall months which did not, however, reach the levels from which the
spring declines began. In 1930 there was a decline from February through
August, with only a slight gain through November, followed by a further
decrease in December and January, 1931. From February through April
demand deposits increased, but declined during each of the remaining months
of 1931 to the lowest point, in December, for any month in the series.
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 in early 1928, through July, since which time the trend
has been downward. From the high point for 1930 in May, these time
deposits declined each month except one through February, 1931. From
February there was an irregular rise through August, followed by a decline
during the last four months of 1931 to the lowest level, for December, since
January, 1925. Prior to 1929 these deposit figures were for a definite date
in each month, but beginning with that year they are monthly averages of
daily figures. Comparisons for the past four years are shown in the table.
Demand Deposits
January
February
March
_
April
May
June
July
August
September
October
November
December
Time Deposits
January
February
_
_
March
April
May
_
_
June
July
August
September
October
November
December




1931
$497
504
508
511
505
492
481
468
454
436
419
418
$398
388
395
394
391
396
401
407
399
387
376
371
16

(In millions of dollars)
1930
1929
$571
$598
575
597
570
601
564
585
550
569
519
549
513
539
504
524
511
537
511
543
512
545
499
550
$434
443
443
440
450
447
440
439
441
438
435
414

$458
458
459
449
459
466
462
445
443
436
433
428

1928
$63 5
625
621
612
607
597
578
557
551
561
570
594
$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
Weekly condition reports of selected member banks in Atlanta and other
cities of the district indicated during 1931 a continued substantial gain in
investment holdings, over 1930, but continued declines in loans and discounts, both those secured by United States Government and other securities, and (tAll Others," which are largely for commercial, industrial and
agricultural purposes.
Total Loans and Investments of these weekly reporting member banks
declined from 582 millions on January 7, the first weekly report date of
the year, to 562.5 millions on February 25, and then increased to 587.6
millions, the highest point reached during the year, on April 15. There
were fluctuations in this total during the summer months which brought
it on September 9 to 543.5 millions, the lowest level up to that time since
March, 1925. There was a gain to 570.5 millions two weeks later, caused
primarily by an increase in holdings of government securities, but on the
last report date in December the total declined to 542.9 millions.
Loans on securities, which had decreased during the last half of 1930,
continued the decline from a high point for the year at 139 millions on
January 14 to 108.2 millions on December 30, the lowest level for any
report date since May 25, 1927. All Other Loans declined from 299 millions at the beginning of 1931 to 250.9 millions on December 23, and
increased only slightly on the last report date of the year a week later.
Investment holdings of United States securities and of Other Bonds
and Stocks increased in 1931 over the year before, the combined total
fluctuating between a low for the year at 139.6 millions on January 28,
the high point for the year at 194.6 millions on September 16, and a
total of 181.8 millions on the last report date, December 30.
During the first half of 1931 demand deposits of these weekly reporting
member banks were, for most weeks, slightly above 300 millions of dollars,
but a steady decline during the last half of the year reduced these demand
deposits to 250.3 millions on December 23, followed by a slight gain a week
later.
Time deposits of these banks increased from 224.7 millions on January 7
to the high point for the year at 236.4 millions on August 12, but by the end
of the year they had declined to 206 millions.
Borrowings by these banks from the Federal Reserve Bank of Atlanta
declined from 10.3 millions on January 7 to a low level for the year at
$278,000 on July 8, but increased to the highest point for 1931 at 36.8 millions
on December 2, declining by December 30 to 25.1 millions.
On page 23 of this report is a table showing monthly averages of weekly
figures for important items over the past two years.
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 of the Federal Reserve Board which will be issued at a
later date.




17

CONDITION OF FEDERAL RESERVE BANK
OF ATLANTA
(IN THOUSANDS OF DOLLARS)

Dec. 31,
1931

Dec. 31,
1930

Dec. 31,
1929

Dec. 31,
1928

Gold with Federal Reserve Agent
$ 91,800
Gold redemption fund with United States Treasury..
2,725
Gold held exclusively against F. R. Notes
$94,525
Gold settlement fund with F. R. Board
7,416
Gold and gold certificates held by bank
7,620

$129,900
2,237
$132,137
10,803
7,907

$126,880
2,669
$129,549
5,604
4,438

$ 96,177
3,974
$100,351
12,856
5,139

Total gold reserve
Reserves other than gold
Total reserves
Non-reserve cash

$109,561
6,061
$115,622
4,368

$150,847
8,578
$159,425
4,693

$139,591
13,926
$153,517
5,559

$118,346
9,363
$127,709
4,178

Bills Discounted:
Secured by U. S. Govt. Obligations
Other bills discounted
Total bills discounted
Bills bought in open market

$ 3,799
31,103
$ 34,902
$ 13,235

$

487
17,581
$ 18,068
$ 15,756

$ 2,680
26,667
$ 29,347
$ 19,196

$

U. S. Government Securities:
Bonds
Treasury Notes
Certificates and Bills
Total U. S. Govt. Securities
Other securities
Total Bills and Securities

$ 6,521
380
7,037
$ 13,938
850
$ 62,925

$

523
4,380
2,974
$ 7,877
600
$ 42,301

$

1,173
3,377
5,395
$ 9,945

$
$

$ 58,488

$ 80,277

Uncollected items
Bank premises
All other resources.

$ 11,839
$ 2,489
$ 4,653

$ 12,846
$ 2,573
$ 6,263

$ 26,748
$ 2,658
$ 3,873

$ 22,454
$ 2,744
$ 1,520

Total resources

$201,896

$228,102

$250,843

$238,882

$120,626

$133,854

$143,084

$134,966

$ 46,368
2,047
2,767
172

$ 61,014
1,211
207
479

$ 62,895
2,485
219
164

$ 63,385
1,944
273
140

$ 51,3 54

$ 62,911

$ 65,763

$ 65,742

$ 12,000
5,158
10,449
2,309

$ 13,130
5,346
10,857
2,004

$ 23,907
5,384
10,857
1,848

$ 21,361
5,231
10,554
1,028

$201,896

$228,102

$250,843

$238,882

67.2

81.0

73.5

63.6

8,947

$ 15,642

$21,320

$ 13,567

RESOURCES

LIABILITIES
F. R. Notes in actual circulation
Deposits:
Member bank—reserve account
Government
Foreign banks
Other 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 .
$




18

9,467
31,553
$ 41,020
$ 32,002
1,564
4,311
1,380
7,255

EARNINGS AND EXPENSES OF THE
FEDERAL RESERVE BANK OF ATLANTA
1930

1929

1928

$ 762,143
238,179
298,942
32,746
116,825

$1,087,248
417,294
315,989
24,139
119,054

$3,091,399
716,782
171,667
39,735

96A66

$2,529,951
687,533
245,502
32,996
82,174

$1,448,835

$1,963,724

$4,116,049

$3,578,156

$ 237,239
417,748
81,358
134
122
944
23,223
22,676
29,398
8,222

$ 231,917
419,257
83,463
280
102
1,438
24,358
19,006
30,499
8,186

$ 207,184
405,562
74,167
398
67
1,089
22,651
19,368
28,590
11,323

26,013
46,241
62,328
16,768
12,044
5,351
20,275
28,557
8,015
73,700
93,998
39,591
38,367

24,758
42,624
64,152
15,393
8,501
5,379
26,317
29,511
7,878
70,674
113,970
42,505
36,219

24,374
3 5,600
61,045
15,182
18,891
6,120
21,659
30,321
6,243
64,419
99,074
36,918
35,620

$1,203,678

$1,292,312

$1,306,387

$1,225,865

$

$

71,057
9,513

$ 199,393
7,459

$

$1,268,776

$1,372,882

$1,513,239

$1,253,134

$1,448,83 5
1,268,776

$1,963,724
1,372,882

$4,116,049
1,513,239

$3,578,156
1,253,134

$ 180,059

$ 590,842

$2,602,810

$2,325,022

$

$

$

$

EARNINGS
Discounted bills
Purchased bills
United States securities
Deficient reserve penalties
Miscellaneous
Total

earnings

1931

CURRENT EXPENSES
Salaries:
Bank Officers
$ 231,866
Clerical Staff
403,400
All other
82,715
Governors' Conferences
232
Federal Reserve Agents' Conferences
Federal Advisory Council
853
Directors' Meetings
22,741
Traveling expenses (a)
23,438
Assessments for Federal Reserve Board Expenses
26,127
Legal Fees
3,061
Insurance (other than on currency and
security shipments)
27,052
Insurance on currency and security shipments
30,734
Taxes on banking house
60,515
Light, heat and power
15,697
Repairs and alterations, banking house
2,846
Rent
5,288
Office and other supplies
16,236
Printing and stationery
18,466
Telephone
7,793
Telegraph
69,365
Postage
81,794
Expresssage
36,619
Miscellaneous
36,840
Total, exclusive of cost of currency
Federal reserve currency, including shipping
charge:
Original cost
Cost of redemption
Total current expenses

PROFIT AND LOSS ACCOUNT
Earnings
Current expenses
Current net earnings
Additions to current net earnings




19

59,741
5,357

45,598

37,985

5,360

19,914
7,355

5,462

Deductions from current net earnings:
Bank premises—depreciation
Furniture and equipment
Reserve for probable losses
All other
Total deductions

$ 84,007
5,608
127,033
9,009
$ 225,657

$

85,828
11,934
194,990
12,768

$

85,828
38,225
696,500
3 59,099

$

85,673
49,980
403,018
97,829

$ 305,520

$1,179,652

$ 636,500

Net earnings available for dividends, surplus
and franchise tax
$
0 $ 323,307
Dividends paid
$ 313,247 $ 323,307
Transferred to surplus account
0
0

$1,428,518
$ 321,696
303,032

$1,693,985
$ 312,259
558,425

803,790

823,301

Charged to surplus account:
Account dividends paid
Account depreciation on United States
securities
Franchise tax paid U. S. Government
REIMBURSABLE FISCAL AGENCY
EXPENSES
Salaries
All other
Total

313,247
95,405

$

5,280
3,549

$

5,280
1,962

$

5,130
1,235

$

5,289
2,321

$

8,829

$

7,242

$

6,365

$

7,610

(a) Other than those connected with governors' and agents' conferences and meetings of
directors and of the advisory council.




20

FEDERAL RESERVE BANK OF ATLANTA
Monthly averages of daily figures—in millions
HOLDINGS OF BILLS AND SECURITIES
Bills
Discounted

Bills
Bought

1931

Jan.
Feb.
V arch
I
April
May
June

July
Aug.
Sept.
Oct.
Nov.
Dec.




1930

1931

1930

23
22
13
11
11
13
14
20
25
38
51
52

32
25
22
19
28
30
29
30
28
25
27
30

12
6
7
7
8
8
8
5
7
35
32
20

19
19
17
20
18
10
9
8
12
11
10
14

U. S.
Securities

Total Bills
and
Securities

1931

1930

1931

1930

8
8
11

9
9
9
9
9
10
11

43
35
31
30
39
42
44
47
55
95
101
88

59
53
48
48
54
50
49
51
53
48
47
52

13
19
21
22
22
22
22
17
16

13
13
13
10
8

Cash
Reserves

F.R.

Note
Circulation

Member
Bank
Reserve
Deposits

Reserve
Ratio

1931 1930

1931 1930

1931

1930

1931

1930

159
162
167
171
158
148
140
136
127
90
84
96

134
131
131
132
130
124
118
114
113
117
121
122

135
132
132
129
127
127
119
115
115
122
123
129

58
59
59
60
58
57
57
54
54
51
49
49

65
64
65
65
63
61
61
59
60
60
59
58

80.9
84.1
87.4
87.8
83.1
80.8
78.8
77.3
73.0
50.9
47.1
54.4

73.7
76.9
80.0
79.5
75.9
77.6
76.3
75.1
74.4
77.7
78.5
75.7

149
153
158
157
146
148
139
133
131
143
145
143

VOLUME OF OPERATIONS IN PRINCIPAL
DEPARTMENTS
FEDERAL RESERVE BANK OF ATLANTA
Number of Pieces Handled

1928

10,100
63,285

12,255
75,189

10,259
60,473

8,660

6,931

6,268

117,567,242
66,269,794
28,940,900

125,990,910
70,845,651
31,496,000

133,934,704
62,926,922
32,305,000

122,279,626
60,994,041
31,384,000

390,711
178,181

411,777
165,977

452,395
163,671

663,108
154,739

54,497
73,889
$

Bills purchased:
In open market
From other Federal Reserve
Banks
Currency received and
counted
Coin received and counted.
Checks handled
Collection items handled:
U. S. Govt. coupons paid.
All other
U. S. Securities—issues, redemptions, and exchanges
by Fiscal Agency Department
Transfers of funds




1929

34,885
84,575

53,311
97,924

169,416
85,470

116

Collection items handled:
U. S. Govt. coupons paid.
All other
U. S. Securities—issues, redemptions, and exchanges
by Fiscal Agency Department
Transfers of funds
Amounts Handled
Bills discounted

193 0

7,625

Bills purchased:
In open market
From other Federal Reserve
Banks
Currency received and
counted
Coin received and counted.
Checks handled

1931

11,378
64,502

Bills discounted:
Applications
Notes discounted

450,631,000

$ 515,993,000 $ 1,349,145,000 $ 1,326,634,000

107,631,000

124,290,000

104,804,000

96,854,000

5,006,000

10,026,000

465,356,000
10,637,000
8,227,498,000

564,128,000
12,787,000
10,428,054,000

583,131,000
8,923,000
12,182,513,000

536,362,000
8,249,000
11,975,832,000

5,328,000
138,367,000

5,911,000
147,384,000

6,371,000
169,231,000

6,074,000
163,213,000

292,631,807
2,110,001,000

148,902,000
2,562,525,000

137,713,000
2,477,543,000

236,759,000
2,296,72 5,000

22

CONDITION OF WEEKLY REPORTING MEMBER BANKS IN SELECTED CITIES
Monthly averages of weekly figures—in millions
Loans on
Securities

All Other
Loans

Investments

Total Loans
and
Investments

Demand
Deposits

Time
Deposits

Borrowings
from
F. R. Bank

1931

1930

1931

1930

1931

1930

1931

1930

1931

1930

1931

1930

1931

1930

January

138

153

291

342

142

124

571

620

305

333

223

232

10

21

February

132

159

289

335

148

124

5 69

618

306

331

221

241

9

13

March

133

163

283

333

160

125

576

621

304

326

229

243

3

9

April

127

159

278

331

178

130

583

620

311

329

230

243

1

6

May

116

153

272

321

175

132

563

606

307

322

228

243

2

9

June

116

148

265

318

178

134

559

600

302

312

227

244

2

10
9

July

114

148

266

310

179

135

559

593

300

313

233

243

1

August

113

151

263

300

174

137

550

588

291

311

235

243

6

8

September

114

150

263

301

181

145

558

596

281

313

228

241

11

9

October

116

144

262

306

185

150

563

600

267

312

218

240

22

9

November

114

142

259

308

181

145

554

595

259

312

214

239

31

12

December

114

135

252

313

183

146

549

594

254

303

208

232

30

16