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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
@FedFRASER