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SIXTEENTH ANNUAL REPORT OF THE
FEDERAL RESERVE BANK OF ATLANTA




I93O

SIXTEENTH
ANNUAL REPORT
OF THE

FEDERAL RESERVE BANK
OF ATLANTA

I93O

ATLANTA,




GEORGIA

DIRECTORS AND OFFICERS
FOR 1931
FEDERAL RESERVE BANK OF ATLANTA
DIRECTORS
OSCAR NEWTON, Chairman,

E. C. MELVIN, Selma, Ala.
G. G. WARE, Leesburg, Fla.

Atlanta, Ga.
W. H. KETTIG, Deputy Chairman,
Birmingham, Ala.

LEON C. SIMON, New Orleans, La.

GEO. S. HARRIS, Atlanta, Ga.

J. B. HILL, Nashville, Tenn.

J. A. MCCRARY, Decatur, Ga.

H. LANE YOUNG, Atlanta, Ga.

OFFICERS
OSCAR NEWTON, Chairman of the

E. R. BLACK, Governor

Board and Federal Reserve Agent
W. S. JOHNS, Deputy Governor
WARD ALBERTSON, Assistant Federal
H. F. CONNIFF, Deputy Governor
Reserve Agent and Secretary of
W. S. MCLARIN, JR., Assistant Deputy
the Board of Directors
Governor
E. P. PARIS, General Auditor
M. W. BELL, Cashier
J. W. HONOUR, Assistant Auditor
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. P. BUTLER. New Orleans, La.

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. WALKER, Assistant Manager

MARCUS WALKER, New Orleans, La.

W. H. BLACK, Cashier

R. S. HECHT, New Orleans, La.
P. H. SAUNDERS, New Orleans, La.

F. C. VASTERLING, Assistant Cashier
W. E. MILLER, Assistant Auditor

F. W. FOOTE, Hattiesburg, Miss.
A. P. BUSH, Mobile, Ala.
J. D. O'KEEFE, New Orleans, La.




BIRMINGHAM BRANCH
OFFICERS

DIRECTORS
W. H. KETTIG, Chairman,

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

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
JNO. C. COOPER, 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.
FULTON SAUSSY, 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, 1931.
Sirs:
I have the honor to submit herewith
the Sixteenth Annual Report of the
Federal Reserve Bank of Atlanta, covering the year 1930.
Respectfully,
OSCAR NEWTON,
Chairman of the Board and
Federal Reserve Agent

Federal Reserve Board,
Washington, D. C.




GENERAL BUSINESS
CONDITIONS
The general business depression of the past year has been reflected in all of
the available series of statistics relating to agriculture, business, and industry
in the six states which comprise the Sixth Federal Reserve District. Crop values
in these states were lower in 1930 than they had been in a number of years,
retail and wholesale trade was in smaller volume, production of pig iron and
coal was less, and building and construction activity declined to the lowest level
indicated in figures which are available for building permits back to 1919, and
for contract awards back to 1923.
According to estimates by the United States Department of Agriculture,
the value of the principal crops produced in these six states during 1930 was
approximately 31 per cent less than in 1929, and was smaller than for any other
recent year. These figures are based upon prices prevailing on December 1,
which averaged about 24 per cent below those for December 1, 1929. The price
of cotton on December 1, 1930, was approximately 42 per cent less than it was
a year earlier.
Production of pig iron in Alabama during 1930 was 13 per cent less than
in 1929, and lower than in other recent years. Output of bituminous coal in
Alabama and Tennessee also declined. Production of electric power by public
utility power plants declined 1.4 per cent in 1930 compared with 1929, but
was somewhat larger than in other recent years.
Building permit statistics reported to the Federal Reserve Bank by 20 cities
in the district declined 40 per cent, and contracts awarded in the district
as a whole declined 29 per cent in 1930 compared with the year before, and
were less than for any other year in available statistics.
Distribution of merchandise at retail, indicated in sales figures of 41
department stores located throughout the sixth district, declined 9 per cent, and
sales by 107 wholesale firms declined 18 per cent, compared with 1929. Sales
of life insurance in these six states during 1930 were 9 per cent less than in 1929.
Debits to individual accounts at 26 clearing house centers of the district
were 16 per cent smaller during 1930 than in 1929. Daily average demand
deposits of all member banks in the district were smaller for each month in
1930 than in the corresponding month of 1929, and daily average time deposits
were smaller excepting in October and November than in corresponding months
a year earlier.
Principal business indicators relating to the sixth district are summarized
in the table following.




(000 omitted)
1930
834,282
43,601

1929
$ 1,201,286
$
72,322

1928
Value of Principal Crops (1)
$
$ 1,073,090
Building Permits at 20 Cities
$
$ 108,075
Building and Construction Contracts
Awarded—District
$ 233,117 $ 328,594 $ 330,878
Residential Contracts
$
46,001 $
76,461 $ 106,687
All Others
$ 187,116 $ 252,133 $ 224,191
Commercial Failures—Number (2)
1,395
1,205
1,547
Commercial Failures—Liabilities
$
49,919 $
25,145 $
32,896
Retail Trade—Sales of 41 Dept. Stores....!
62,859 $
69,010 $
70,579
Wholesale Trade—Sales of 107 Firms
$ 100,074 $ 122,6 5 6 $ 120,729
Life Insurance Sales (1)
$ 473,987 $ 521,228 $ 508,422
Fertilizer Sales—Short Tons (1)
*_
2,747
2,606
2,661
Debits to Individual Accounts—26 Cities.-$13,175,783 $15,713,342 $15,152,479
Deposits of All Member Banks (3):
Demand Deposits
$ 498,707 $ 5 50,424 $ 593,646
Time. Deposits
$ 413,822 $ 427,978 $ 463,047
Bituminous Coal Production—Tons:
Alabama
15,240
17,944
17,621
Tennessee
5,103
5,406
5,611
Pig Iron Production—Alabama, Tons
2,343
2,693
2,540
Active Furnaces—Alabama (4)
14
16/ 2
17
Production of Electric Power, k.w.
hours—Total (1)
___. 5,623,959
5,703,403
5,139,877
By Use of Water Power—k.w. hrs. 3,470,299
3,585,587
3,279,269
By Use of Fuels—k.w. hrs
2,153,660
2,117,816
1,860,608

1927
$ 1,091,206
$ 114,914
$
$
$

380,773
111,275
269,498
1,574
$
29,222
$
69,932
$ 126,416
$ 508,339
2,033
$15,422,373
$ 622,434
$ 465,326
19,766
5,783
2,777
19%
4,765,927
2,728,701
2,037,226

(1) Combined totals for six states: Alabama, Florida, Georgia, Louisiana, Mississippi and Tennessee. (Parts of Louisiana, Mississippi and Tennessee 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.

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, 1930,
were smaller by $22,741,000 than at the end of 1929, and were less than at the
close of any year since 1923. Total resources and liabilities at the close of 1930
amounted to $228,102,000, compared with $250,843,000 a year earlier. Total
cash reserves at the end of 1930 were $159,425,000, and were greater by
$5,908,000 than a year earlier, and $31,716,000 greater than at the close of
1928. Holdings of discounted bills on December 31, 1930, totaled $18,068,000,
smaller by $11,279,000 than at the close of 1929, and less than at the end of
any year since 1924. Holdings of bills bought in the open market at the close
of 1930 amounted to $15,756,000, and were smaller by $3,440,000 than at the
end of 1929, and were less than half the amount held at the close of 1928.
Holdings of United States Government and other securities were less at the end
of 1930 than for 1929. Total holdings of bills and securities, amounting to




6

$42,301,000, were $16,187,000 less than for 1929, and were the smallest at the
close of any year since 1924. Federal Reserve notes of this bank were in actual
circulation at the close of 1930 to the extent of $133,854,000, smaller by
$9,230,000 than a year earlier, and less than at the end of any year since 1922,
and total deposits were somewhat smaller than for other years since 1923. On
page 15 of this report are shown comparative balance sheets of the Federal
Reserve Bank of Atlanta for the past four years.
Earnings and Expenses—A table presented on page 16 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 for the year 1930 amounted to $1,963,724, smaller by
$2,152,325, or 52.3 per cent, than for 1929, and the smallest since 1924. The
decrease in earnings is only partly due to the fact that the rediscount rate was
lower during 1930 than in 1929, but principally to the decline of 61.8 per cent
in the volume of discounts handled. A larger volume of purchased bills was
handled during 1930 than in any other year excepting 1925, but earnings from
purchased bills were 42 per cent less than in 1929 because of lower rates. Volume of United States security purchases also increased, and earnings from these
securities increased 84 per cent over those in 1929.
The cost of current operations of the Federal Reserve Bank during the year
1930, including costs of issue and redemption of Federal Reserve notes,
amounted to $1,372,882, a decrease of 9.3 per cent compared with the total of
$1,513,239 for 1929. Most of this decrease is due to the smaller cost connected with the printing of Federal Reserve notes, as current expenses omitting
currency costs show a decrease of 1.1 per cent.
Current net earnings for the year (total earnings less current expenses)
amounted to $590,842, a decline of 77.3 per cent compared with the year 1929,
and smaller than for any other year since 1917. After deductions for depreciation on bank premises and on furniture and equipment, reserves for probable
losses and other deductions, there remained $323,307, an amount sufficient to
pay the regular dividend of six per cent per annum on the paid-in capital stock
of the bank. No change in the surplus account was made, nor was a franchise
tax paid to the United States Government for 1930.

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 1930, as indicated by its total holdings of bills and securities, was approximately 37 per
cent smaller than during 1929. This decrease was due to the lessened demand
on the part of borrowing member banks, as holdings of bills bought in the open
market averaged only slightly smaller in 1930 than in 1929, and average holdings of United States securities were more than twice as large. Total bills and
securities held by this bank on January 8, the first weekly report date of 1930,
amounted to 62.9 millions of dollars. This total was larger than that for any




other Wednesday during 1930. There were only two weekly report dates during 1929 when these total holdings were less than on January 8, 193 0, these
two dates falling on the last Wednesdays of June and December. From this
high point for the year on January 8, these total holdings of bills and securities
declined during the first three months of the year and on April 9, when they
amounted to 37.6 millions, were smaller than on any other Wednesday during
1930, and were also at the lowest level for any other report date since May 6,
1925. This decline was followed by a sharp increase during the following three
weeks, due in part to increased purchases of bills and partly to an increased demand for credit on the part of member banks. During most of the remainder
of the year the movement of total bills and securities corresponded rather closely
with changes in holdings of discounted bills, and at the close of the year
amounted to 42.3 millions. This total is smaller than for most other weeks of
the year, excepting only the four Wednesdays March 19 and 26 and April 2
and 9.
Bills Discounted for Member Banks—The decline in the demand on the
part of borrowing member banks for reserve bank credit during 1930 is best
reflected in the fact that average holdings of discounted paper during 1930
were less than half as large as in 1929. After declining from 76 millions on
September 4, 1929, to 29 millions on December 31, this bank's holdings of discounted bills increased the following week, January 8, to 3 5.6 millions, and then
declined during the first three months of the year to 14.5 millions on March
26. This was the lowest point for the year, and was followed by a rather sharp
increase the latter part of April and May to 32.8 millions on June 4. There
followed a gradual decline to 22.4 millions on November 12, when an increased
demand for reserve bank credit resulted in increases in holdings of discounted
bills to approximately 3 3 millions on December 3, higher than for any other
Wednesday since January 8. From this point, however, there was a decrease
for each of the remaining weeks of December to 18 millions on the last day of
the year.
Bills Bought in tJje Open Market—Holdings of bills bought in the open
market fluctuated between 18.5 millions on January 8, followed by a decline to
13.6 millions on April 9, and an increase during the next two weeks to 24.8
millions, the largest total for any Wednesday in the year. These holdings of
purchased bills declined from that time to August 6 when, at 6.5 millions, they
were the smallest of the year, and increased to 15.8 millions at the end of the
year.
United States Securities—Average holdings of United States securities by
this bank were more than twice as large during 1930 as in 1929. These holdings have been characterized by small fluctuations, and the changes of consequence have been few.
Cash Reserves—Cash reserves increased during the early weeks of 1930
from 146 millions on January 8 to 165 millions, the highest point for the year,
on April 9. There followed a fluctuating decline to the lowest level of the
year, at 127.7 millions, on August 27, and a subsequent increase to 159.4 millions at the close of the year.
Member Bank Reserve Deposits—Total member bank reserve deposits
averaged slightly smaller during 1930 than in 1929, and fluctuations were not




great. On January 8 they amounted to 63.7 millions; on May 7, at 67 millions;
they were larger, and on October 29, at 56.6 millions, they were smaller, than
on other report dates of the year, and at the end of the year they amounted to
61 millions.
Federal Reserve Notes in Actual Circulation—On January 8, 1930, Federal Reserve notes of this bank were in actual circulation to the extent of 137.6
millions of dollars. This total was smaller than for any weekly report date after
the introduction of the small size currency in July, 1929, up to the close of
that year, but was larger than for any other Wednesday in 1930. The volume
of notes in circulation declined for most weeks from January through September. A proportionately large increase the first week in October, occasioned by
the shipment of approximately 24 millions of currency to Cuba for the account
of another Federal Reserve Bank, was followed by declines during the remainder
of October as part of these funds were returned. There was an increase in notes
in circulation in November and through December 24, followed by a decline
during the last week of the year.
Reserve Position—This bank's ratio of total reserves to deposit and Federal
Reserve note liabilities combined averaged higher during 1930 than in 1929.
On January 8 the reserve ratio was 71.7, the lowest for the year. It rose to
84.6, the highest for the year on April 9, declined to 72.7 on September 10,
and was 81.0 at the close of the year.
On page 18 of this report will be found a table showing monthly averages
of daily figures for the principal asset and liability items during 1930.

VOLUME OF DISCOUNTS AND PURCHASES OF
BILLS AND SECURITIES
The total volume of bills discounted and purchased, United States securities bought in the open market and from other Federal Reserve Banks, and
other investment operations of the Federal Reserve Bank of Atlanta during the
year 1930 was $711,037,000. This total is less than one-half as large as for
1929 or 1928, and is also smaller than for other recent years. Discounts were
substantially smaller than in 1929 but purchases of bills and securities were
somewhat greater.
The smaller demand for reserve bank credit in the sixth district during
1930 is indicated in the fact that the total volume of bills discounted or rediscounted for member banks during the year, not including bills discounted
for Federal Intermediate Credit Banks, or discounts for non-member banks
secured by adjusted service certificates, amounted to $510,780,118, smaller by
61.8 per cent than the total of $1,338,663,200 for 1929, and was also less than
in other recent years. The monthly average number of member banks accommodated by the discount of paper during 1930 was 132, compared with 214 in
1929 and with 190 in 1928. Discounts of bills for Federal Intermediate Credit
Banks, amounting to $5,151,250, were less than half as large as in 1929 when
they totaled $10,431,2 50, and discounts for non-member banks secured by
adjusted service certificates increased from $51,007 in 1929 to $62,019 in 1930.




Total discounts in 1930 were $515,993,387, a decrease of 61.8 per cent compared with the total of $1,349,145,457 for 1929.
Bills bought in the open market and from other Federal Reserve Banks in
1930 totaled $133,070,629, and were 27 per cent greater than the total of
$104,803,711 for 1929.
During the year 1930 this bank purchased in the open market United
States securities amounting to $23,395,750, and its proportion of the System's
purchases through the Special Investment Committee was $31,181,500. These
totals, together with other purchases amounting to $5,5 50,000, make the total
of United States securities purchased during 1930 amount to $60,127,250,
against $49,071,000 in 1929. Federal Intermediate Credit Bank debentures
were purchased in the amount of $600,000, and this bank participated to the
extent of $1,245,991 in Investments through Foreign Banks.

VOLUME OF OPERATIONS IN PRINCIPAL
DEPARTMENTS
During the year 1930 there were filed with the Federal Reserve Bank of
Atlanta 10,100 applications for the rediscount or discount of paper, a decrease
of 17.6 per cent compared with the number of applications received in 1929.
There were accepted for rediscount or discount during the year 1930,
63,285 notes amounting to $515,993,000, a decrease of 15.8 per cent in number, and a decline of 61.8 per cent in amount, compared with corresponding
figures for 1929.
Bills purchased in the open market during 1930 numbered 8,660, and
amounted to $124,290,000, showing increases of 24.9 per cent in number, and
18.6 per cent in amount, over bills purchased during 1929.
During 1930 there were received and counted 125,990,910 pieces of currency, amounting in value to $564,128,000, a decrease of 5.9 per cent in number and a decline of 3.3 per cent in amount, compared with the year before.
Coin received and counted during 1930 numbered 70,845,651 and amounted to
$12,787,000, showing increases of 12.6 per cent in number and 43.3 per cent
in value, over coin handled during 1929.
Checks handled during 1930 numbered 31,496,000, and amounted in
value to $10,428,054,000, and were 2.5 per cent less in number and 14.4 per
cent smaller in value than checks handled during 1929.
The number of government security coupons and other collection items
handled during 1930 was 577,754, amounting to $153,295,000, and were 6.2
per cent fewer in number and 12.7 per cent less in value, than those handled
during the year 1929.
Transactions in United States securities by the Fiscal Agency Department
during 1930, involving issues, redemptions and exchanges, numbered 34,88 5 and
amounted in value to $148,902,000, showing a decrease of 34.6 per cent in
number, but an increase of 8.1 per cent in value, compared with those handled
in 1929.




10

Transfers of funds during 1930 numbered 84,575, and amounted to
$2,562,525,000, a decrease of 13.6 per cent in number, but an increase of 3.4
per cent in amount, compared with transfers during 1929.

OPERATIONS OF THE FEDERAL RESERVE
CLEARING SYSTEM
Transit Operations—During the year 1930 the Federal Reserve Bank of
Atlanta handled 29,974,000 items (not including duplications on account of
items handled by both the parent bank and one or more of its branches),
amounting to $10,285,873,000. The number of items was smaller by 526,000,
or 1.7 per cent, than for 1929, but was larger than for other recent years, and
the total amount for 1930 was smaller by $1,641,464,000 than the total for
1929, and was also less than the total for other recent years. There were decreases in both number and amount of items handled which were drawn on
member and par-remitting non-member banks in the sixth district, items drawn
on the Federal Reserve Bank and its branches, and items forwarded to other
Federal Reserve Banks and their branches, but a small increase in number and
amount of items handled which were drawn on the United States Treasurer.
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 1930, for clearings and transfers of funds, amounted to
$4,299,214,000, and total receipts from other Federal Reserve Banks through
this Fund during 1930 were $4,253,996,000. Total payments during 1930
were smaller by $164,750,000 than in 1929, and total receipts declined $222,3 88,000. There was a net loss in gold for the year amounting to $45,218,000,
as compared with a net gain during 1929 over the preceding year of
$12,420,000.

MOVEMENT OF MEMBERSHIP
At the beginning of the year 1930 there were 366 national banks and 62
state bank members of the Federal Reserve System in the sixth district, a total
of 428 member banks. During 1930 there were two new national banks
organized in the district, three state banks were admitted to membership, and
five non-member state banks converted into national banks, thereby becoming
members. There were, however, during the year numerous other changes in
membership due to consolidations, withdrawals, suspensions and other causes,
and the net losses for the year were 2 5 in the number of national banks, and 13
in the number of state bank members, a total reduction of 3 8 in the number of
member banks in this district. These figures, with indications of the different
changes affecting membership, are set out in detail in the table.




n

National
Active member banks on January 1, 1930
New national banks organized
Resumption following suspension
State banks admitted to membership
,
Conversion of non-member state banks to national banks
Conversion of state member bank to national bank
Absorption of state member bank by national bank
Absorption of national bank by state member bank
Consolidation of member bank with non-member state bank —
Consolidations of national banks
.,
Consolidation of state member banks
Voluntary withdrawal of state member banks
Suspensions and insolvency
Active member banks on December 31, 1930

State

366
2
1

62

+

+ 5
+ 1
—3
—6

+ 3
— 1
— 3
— 2

Total
42 8

+
+
+
+

2
1
3
J

— 3
— 3
— 8

Q

0

—

1
A

—17
341

—

5
49

— 1
— 4
— 22
390

BANK ORGANIZATION AND PERSONNEL
H. Lane Young, whose term as a Class A director expired December 31,
1930, was re-elected by member banks in Group 1 for the three-year term ending December 31, 1933.
J. A. McCrary, whose term as a Class B director expired December 31,
1930, was re-elected by member banks in Group 2 for the three-year term ending December 31, 1933.
George S. Harris, whose term as a Class C director expired December 31,
1930, was re-appointed by the Federal Reserve Board for the three-year term
ending December 31, 1933.
Luke Lea, whose term as a Class B director expires December 31, 1931,
resigned on November 14, 1930, and at a special election held in January,
1931, J. B. Hill, of Nashville, Tennessee, was elected for the unexpired portion
of Mr. Lea's term.
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.
J. P. Butler, of New Orleans, Louisiana, was re-elected member of the
Federal Advisory Council from the Sixth Federal Reserve District for the year
1931.
On July 30, L. L. Magruder, Manager of the Havana Agency of this bank,
died, and H. C. Frazer was advanced from Assistant Manager to succeed him,
and A. H. Alston was elected Assistant Manager.
Creed Taylor, Deputy Governor, died on October 24, and at the November
meeting of the Board of Directors, W. S. Johns, formerly General Auditor, was
elected Deputy Governor, and E. P. Paris was elected General Auditor.
At the January 1931 meeting of the Board of Directors the resignation of
W. S. McLarin, Jr., Managing Director of the Jacksonville Branch, was accepted, and Hugh Foster, formerly Deputy Governor, was elected to succeed him.
H. F. Conniff, formerly Assistant Cashier, was elected Deputy Governor to
succeed Mr. Foster, and W. S. McLarin, Jr., was elected Assistant Deputy Gov-




12

ernor. Other officers of the bank were re-elected at the January meeting for
the year 1931.
The number of officers and employees of the Federal Reserve Bank of
Atlanta, including its branches and agencies, on January 1, 1930, was 43 3, and
on December 31, 1930, was 423, not including 8 and 10 temporary employees
on those respective dates.

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. 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.
During 1930 the course of demand deposits was definitely downward from
February through August, followed by a small gain through November. In
December, however, there was a decrease which carried the total to the lowest
for any month since September, 1924. 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. These time deposits in 1930
increased from 434 millions in January to 450 millions in May, but since that
time have declined each month except one (September) and in December were
less than for any other month since August 192 5. 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 follow.
(In millions of dollars)
Demand

Deposits

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

1930
$571
575
570
564
5 50
519
513
504
511
511
512
_. 499

-

1929

1928

1927

$598
597
601
585
5 69
549
539
524
537
543
545
5 50

$635
62 5
621
612
607
597
578
5 57
551
561
570
594

$636
637
618
615
601
587
575
5 80
600
607
611
622

$458
45 8
459
449

$465
461
466
467

$443
451
453
45 6

Time Deposits
January
February
March
April

$434
443
443
440

May
June




450
447
13

4 59
466

472
472

463
460

July
August —
September
October
November
December

.

440
439
441
43 8
43 5
414

462
44 5
443
436
43 3
428

475
472
467
469
467
463

461
457
458
46 5
466
46 5

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 indicate that during 1930 investment holdings of these
banks, their loans on securities, and time deposits averaged somewhat larger
than in 1929, but demand deposits, "all other" and total loans, and their borrowings from the Federal Reserve Bank, were smaller.
Total loans and investments of these banks on January 8, 1930, the first
report date of the year, amounted to 623 millions, declining to 614 millions on
March 12, and increasing the following week to 628 millions, the highest total
of the year. From this date there was a decline to 5 84 millions on August 13,
followed by an irregular increase to 60 5 millions on December 17, but on December 31 the low point for the year was reached at 577 millions. Loans on
securities increased from 152 millions on January 8 to the high point for the
year, at 167 millions, on March 19, but during the remainder of the year the
trend was downward, and the lowest point for the year was reached on December 31, at 130 millions. All other loans, which include those for commercial,
industrial and agricultural purposes, declined from the high level on January 8,
at 347 millions, to 298 millions on August 13; this was followed by an irregular
increase to 315 millions on December 24, with a decline to 307 millions on
December 31. Investment holdings of these banks in United States Government and other securities increased from 124 millions on January 8 to a high
point for the year at 153 millions on December 17, but on December 31
amounted to 140 millions.
Demand deposits of these banks were greatest, at 3 37 millions, on April
16, and smallest on December 24, at 299 millions, and time deposits increased
from 226.5 millions on January 8 to 245 millions on November 12, but on
December 31 were 229 millions.
Borrowings by these banks from the Federal Reserve Bank of Atlanta
averaged a little less than thirty per cent as large during 1930 as in 1929.
These borrowings declined from 25.4 millions on January 8 to 2.4 millions on
April 9. There were fluctuations during the balance of the year, increasing to
18.2 millions on December 3 and falling to 12 millions on December 31.
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.




14

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

RESOURCES
Dec. 31,
1930

$ 96,377

$145,772

2,669
$129,549
5,604
4,438
$139,591
13,926
$153,517
5,5 59

3,974
$100,351
12,856
5,139
$118,346
9,363
$127,709
4,178

1,688
$147,460
11,791
8,078
$167,329
11,946
$179,275
4,371

487
17,581
$ 18,068
15,756

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

$ 9,467
31,553
$ 41,020
32,002

$ 8,053
20,149
$ 28,202
2,238

$

$

$

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

LIABILITIES
F. R. Notes in actual circulation
Deposits:
Member bank-reserve account
Government
Foreign banks
Other deposits
Total deposits

$ 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

$144,097

61,014
1,211
207
479
$ 62,911

62,895
63,385
2,48 5
1,944
219
273
164
140
$ 65,763 $ 65,742

73,243
1,5 32
190
170
$ 75,13 5

$ 13,130 $ 23,907 $ 21,361 $ 23,981
5,346
5,384
5,231
5,175
10,8 57
10,8 57
10,5 54
9,996
2,004
1,848
1,028
278
_$228,102 $250,843 $238,882 $258,662

^

Ratio of total reserves to deposit and
Federal reserve note liabilities combined (per cent)
Contingent liability on bills purchased
for foreign correspondents




$ 58,488

1,564 $ 5,971
4,311
893
1,3 80
6,721
$ 7,2 5 5 $ 13,5 8 5
260
$ 80,277 $ 44,286

$133,854

*

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

$ 12,846
2,573
6,263
.$228,102

Uncollected items
Bank premises __„.
All other resources
Total resources

Deferred availability items
Capital paid in
Surplus
All other liabilities
Total liabilities

$126,880

$

U. S. Government securities:
Bonds
Treasury notes
Certificates and bills
Total U. S. Government securities
Other securities
Total bills and securities

Dec. 31,
1927

2,237
$132,137
10,803
7,907
$150,847
8,578
$159,425
4,693

Bills discounted:
Secured by U. S. Government obligations
Other bills discounted
Total bills discounted
Bills bought in open market

Dec. 31,
1928

$129,900

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 g o l d - _
Total reserves
Non-reserve cash

Dec. 31,
1929

81.0

63.6

$ 15,642
15

73.5
$ 21,320

$ 13,567

81.8
$

9,380

EARNINGS AND EXPENSES OF THE
FEDERAL RESERVE BANK OF ATLANTA
1930

1929

1928

1927

Discounted bills
Purchased bills
United States securities
Deficient reserve penalties...^
Miscellaneous

EARNINGS

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

$3,091,399
716,782
171,667
39,73 5
96,466

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

$1,254,629
332,593
290,218
25,900
164,499

Total earnings

$1,963,724

$4,116,049

$3,578,156

$2,067,839

CURRENT EXPENSES
Salaries:
Bank Officers
$ 237,239
Clerical Staff
417,748
Special Officers
45,842
All other
3 5,516
Governors' Conferences
134
Federal Reserve Agents' Conferences..
122
Federal Advisory Council
944
Directors' Meetings
23,223
Traveling expenses (1)
22,676
Assessments for Federal Reserve Board expenses
29,398
Legal fees
8,222
Insurance (other than on currency and
security shipments)
26,013
Insurance on currency and security shipments
46,241
Taxes on banking house
62,328
Light, heat and power.
16,768
Repairs and alterations, banking house
—
12,044
Rent
5,3 51
Office and other supplies
20,275
Printing and stationery
28,557
Telephone
^—
8,015
Telegraph
73,700
Postage
93,998
Expressage
+—
39,591
Miscellaneous
38,367
Total exclusive of cost of currency
Federal reserve currency, including shipping
charges:
Original cost
Cost of redemption
Total current expenses
PROFIT AND LOSS ACCOUNT
Earnings
Current expenses
Current net earnings




$ 231,917 $ 207,184 $ 201,992
419,257
405,562
408,533
44,675
36,511
3 5,217
3 8,788
37,656
39,408
280
398
282
102
67
136
1,438
1,089
945
24,358
22,651
23,243
19,006
19,368
17,582
30,499
28,590
32,177
8,186
11,323
9,144
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
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

21,474
33,167
57,429
13,949
7,013
5,626
20,482
29,354
6,159
63,63 5
99,78 5
31,692
36,966

$1,292,312

$1,306,387

$1,225,865

$1,195,390

$

71,057
9,513

$ 199,393
7,459

$

$

-$1,372,882

$1,513,239

$1,253,134

$1,264,156

$1,963,724
1,372,882

$4,116,049
1,513,239

$3,578,156
1,253,134

$2,067,839
1,264,156

$2,602,810

$2,325,022

$ 803,683

.$
16

590,842

19,914
7,355

59,861
8,905

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

$
h

Total deductions

$

37,98 5 $
85,828
11,934
194,990
12,768

$

5,3 60
85,828
38,225
696,500
359,099

$
$

5,462
85,673
49,980
403,018
97,829

$
$

956
85,008
48,460
1,267

.$ 305,520

$1,179,652

$ 636,500

$ 134,735

Net earnings available for dividends, surplus
and franchise tax
.,
$ 323,307

$1,428,518

$1,693,985

$ 669,904

Dividends paid
Transferred to surplus account
Franchise tax paid U. S. Government

$ 323,307

$ 321,696
303,032
803,790

$ 312,259 $ 305,817
5 58,425
364,087
823,301

$

5,280
1,962

$

5,130 $
1,23 5

5,289
2,321

$

5,220
2,886

$

7,242

$

6,365

7,610

$

8,106

REIMBURSABLE FISCAL AGENCY
EXPENSES
Salaries
All other
Total

$

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




17

FEDERAL RESERVE BANK OF ATLANTA
Monthly averages of daily figures—in millions
HOLDINGS OF BILLS AND SECURITIES
Bills
Discounted
1930 1929
Jan.
Feb.
March
April
May

June
July
Aug.
Sept.
Oct.
Nov.
Dec.

Bills
Bought
1930 1929

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




59
56
52
64
73
66
69
75
70
58
59
43

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

28
21
13
9
8
8
6
6
13
23
23
19

Securities

Total Bills
and
Securities

Cash
Reserves

F.R. Note
Circulation

Member
Bank
Reserve
Deposits

Reserve
Ratio

1930 1929

1930 1929

1930 1929

1930 1929

1930 1929

1930 1929

U. S.

9
9
9
9
9
10
11
13
13
13
10
8

5
4
4
4
3
4
3
3
•
*
4
8
9

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

92
81
68
77
85
77
78
84
86
85
91
71

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

114
126
146

135
132
132

133
120
125
133
135
139
142
133
149

129
127
127
119
115
115
122
123
129

130
130
138
135
133
129
141
153
157
155
154
148

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

67
68
68
66
65
63
62
60
61
62
61
63

73.7 57.2
76.9 63.3
80.0 70.4
79.5 65.6
75.9 60.5
77.6 64.1
76.3 64.8
75.1 62.7
74.4 62.4
77.7 64.2
78.5 61.2
75.7 70.1

VOLUME OF OPERATIONS IN PRINCIPAL
DEPARTMENTS
FEDERAL RESERVE BANK OF ATLANTA
Number of Pieces Handled
Bills discounted:
Applications
Notes discounted
Bills purchased in open
market for own accountFederal Intermediate Credit
Bank Debentures bought
under repurchase agreement
Currency received and
counted
Coin received and
counted Checks handled
Collection items handled:
U. S. Gov't coupons paidAll other
U. S. securities—issues, redemptions and exchanges by
Fiscal Agency department
Transfers of funds

1930

1929

1928

1927

10,100
63,28 5

12,255
75,189

10,259
60,473

7,110
47,15 5

8,660

6,931

9,268

5,828

125,990,910

133,934,704

122,279,626

121,378,000

70,845,651
31,496,000

62,926,922
32,305,000

60,994,041
31,384,000

61,760,000
31,904,000

411,777
165,977

452,395
163,671

663,108
154,739

827,000
158,000

34,885
84,575

53,311
97,924

169,416
85,470

138,000
76,000

1

Amounts Handled
Bills discounted

$

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

Bills purchased:
Bills purchased in open
market for own account
124,290,000
Participation in investments through foreign
banks 1,246,000
Federal Intermediate Credit
Bank Debentures bought
under repurchase agreem't
600,000
Currency received and
counted
564,128,000
Coin received and counted12,787,000
Checks handled
10,428,054,000
Collection items handled:
U. S. Gov't coupons paid
5,911,000
All other
147,384,000
U. S. securities—issues, redemptions and exchanges by
Fiscal Agency department
148,902,000
Tranfers of funds
2,562,525,000




667,521,000

104,804,000

96,854,000

63,315,000

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

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

538,462,000
8,2 50,000
12,360,424,000

6,371,000
169,231,000

6,074,000
163,213,000

6,737,000
166,884,000

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

236,759,000
2,296,725,000

173,076,000
2,281,756,000

19


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102