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FEDERAL RESERVE BM K OF ATLAM




Entrance to Main Vault




15
91
S T / ii't t y - M x f/ t A nnual R eport fo r the Y ear Ended




D ecem ber 3 1, 1950




February 15, 1951
To the Member Banks of the
Sixth Federal Reserve District:
In the following pages I present a review of the operations of
the Federal Reserve Bank of Atlanta for the year 1950. A major
part of this report deals with specific departmental activities.
These activities are carried on for the benefit of the Government
and the public in general and of banking and the business com­
munity in particular. In truth, the Bank is a service institution and
again I urge, as I have in the past, that bankers of the District visit
our offices in the interest of becoming better acquainted with our
work and of strengthening those personal relationships which mean
so much in maintaining mutual confidence and understanding.
It is indeed gratifying that our relations with the banks of the
Sixth Federal Reserve District were maintained during the year
on the same basis of friendly co-operation that has been charac­
teristic of the past. Jointly, we share in the vast responsibility of
maintaining a sound and adaptable financial mechanism for the
benefit of the public in its monetary dealings. In the year 1951,
this responsibility will be greatly enhanced because of the na­
tional defense effort. I am sure that in our joint relationships we
shall discharge our trust with continued integrity and efficiency.




Sincerely yours,
W. S. M c L a r i n , J r .,

President




TABLE OF CONTENTS
PAGE
R e v i e w o f B a n k i n g D e v e l o p m e n t s ...............................................9

Business B a c k g r o u n d ........................................................ 10
Changes in Membership in the Sixth District

.

14

Growth in Par B a n k i n g ............................

15

R e v i e w o f B a n k O p e r a t i o n s .......................................

V-Loan Program .......................................

17

.

Consumer C redit............................

18
. . 1 9

Real Estate C r e d i t ......................
Commodity Credit Corporation

20
. . . .

Reconstruction Finance Corporation

. 21
.

22

Bank and Public Relations......................

23

Bank E x am in atio n .......................................
Check Clearing and Collection

.2 4

. . . .

25

Currency and C o i n ...................................................

.2 7

Discount and C redit...................................................

.2 8

Fiscal Agency and Securities . . .

29

P erson n el............................................................................... 33
R e s e a r c h ............................................................................... 34
Appointments, Elections, and Official Staff Changes .

.

35

D i r e c t o r s a n d O f f i c e r s ...................................................................... 3 9
F in a n c ia l a n d V o l u m e R e p o r t s




46




Measured by their ability to meet the demands of business bor­
rowers, by growth in assets, and by earnings, the member banks
of the Sixth District operated with complete success during the
year. As a group, their total assets grew from $6.1 billion to $6.7
billion, reaching an all-time high. Although holdings of securities
declined by about $50 million, total loans and discounts increased
by approximately $390 million. Reflecting the growth in loans
was a rise in total deposits from $5.7 billion to $6.2 billion.
Earnings of the member banks as a whole were substantial.
Current operating earnings amounted to $162 million, compared
with $146 million in 1949, a gain of 11 percent. Interest on
United States Government obligations provided $38.7 million, or
23.9 percent of the total. Interest and discount on loans amounted
to $83.3 million, or 51.4 percent of the total. Net current operat­
ing earnings were $61.7 million, compared with $54 million for
1949. Net profits after all charges, including taxes on net income,
amounted to $37 million, against $34 million for 1949.




9

Increases over the preceding year were made in dividend pay­
ments. For the year 1950, such payments amounted to $12.8 mil­
lion, against $11.7 million for 1949.

These gains in banking re­
sources indicated that business
activity was in an expansionary
phase. When goods are moving briskly from producer to con­
sumer, the demand for bank loans increases to facilitate the grow­
ing volume of exchanges. On a rising price level, businessmen
purchase for inventory with confidence and enlarge and improve
their plants. Consumers are stimulated to practice anticipatory
buying and to save at a decreasing rate. All of these factors were
present during the year, but they gained in force following the
outbreak of the Korean War at midyear.
During the first half of the year, only a moderate expansion of
business activity took place. This expansion was evidenced by
almost uninterrupted month-to-month gains in industrial produc­
tion, in generally rising employment after allowing for seasonal
changes, and in rising income. The distribution of National Serv­
ice Life Insurance refunds, largely in the first quarter, provided a
strong stimulus to business and served in large measure to avoid
a decline such as had appeared in the early part of each of the
other postwar years.
With the decision by the United States Government to repel the
North Korean forces that crossed into South Korean territory on
June 25, 1950, the expansionary factors that were already in evi­
dence in the economy were given added strength. There is no par­
ticular mystery about what took place. An avalanche of consumer
and business spending that brought sales to abnormal levels had
been released. Fearing that the Korean conflict marked the begin­
ning of another major war, consumers went on a buying spree
10




that embraced houses, automobiles, tires, electric appliances, and
many other items. Panic buying occurred even for articles of wear­
ing apparel and food. Business investment also expanded sharply.
Another buying wave was set in motion when the Chinese
Communist armies swept into North Korea in late November.
In spite of all-time highs in the output of automobiles, electric
appliances, and textiles, consumer demand remained unsatiated.
In response to this sustained demand, business planned an even
greater investment in additional productive capacity for 1951
than had been committed in 1950.
Price inflation following the outbreak of the Korean War had
assumed major proportions as the year ended. The index of 28
basic commodities was 50 percent higher than it was in March,
wholesale prices were 16 percent higher, and consumer prices,
6 percent higher.
The upward pressure on prices was strongly supported by an
expansion of credit. Consumer instalment credit increased $493
million in July, $409 million in August, and $322 million in Sep­
tember. Following the imposition of consumer credit restrictions
in late September, these extraordinary gains were checked, and in
November consumer instalment credit dropped by $74 million to
an estimated total of $13.3 billion. As testimony to the effective­
ness of the credit controls, this decline was the first November
decrease experienced since 1943.
But in the meantime bank-credit expansion had gone on un­
checked. At the end of the year, loans at all commercial banks
stood at an estimated $52.7 billion, a gain of $10 billion for the
12 months. Most of this gain, $8 billion, came in the second half
of the year. Obviously, if total bank loans had in some way been
prevented from growing beyond the midyear level, the country
would have been spared a large part of the ensuing inflation.
The most striking feature in this inflationary situation was that
it came about without additional Federal spending and deficit
financing. Treasury budget expenditures for the second half of
1950 were $20 billion against $22 billion for the like period of




11

1949, and the budgetary deficit was $1 billion against $4 billion.
The gross public debt at the end of the year was $256.7 billion
against $257.2 billion a year earlier.
Here then is the dominant note for 1951: at a time when personal-consumption and business-investment expenditures are at
record levels, government spending for defense is to be stepped
up sharply. A potent expansionary lift to an already overexpanded
economy is thus indicated.
At the end of 1950, the country was producing at near-capacity
rates. The index of industrial production in December was at 216
percent of the prewar average compared with 195 percent reached
at the top of the 1948 expansion. It is obvious, therefore, that
increased defense production in 1951 must be at the expense of
production for personal and business needs, insofar as total out­
put cannot be enlarged.
The responsibility of the banking system in the new national
defense program that will get under way in 1951 is thus partic­
ularly grave. The commercial banks are endowed with the extra­
ordinary power of being able to expand or contract the money
supply. Through the fractional reserve mechanism, the banks
can lend more money than they actually have on hand, and, when
they make loans, additional purchasing power is made available
to the borrower.
Additional Federal spending, as it becomes translated into
additional consumer purchasing power, will increase borrowing
capacity and will at the same time result in the quickening of
production and consumption. Under these circumstances, de­
mands for business and consumer loans will continue to expand.
The banks will be in a position to sift these demands for the pur­
pose of channeling bank credit into the defense effort and away
from nondefense purposes. Such channeling will remain the para­
mount responsibility of bankers so long as the defense effort lasts.
During 1951, the banks in the District will operate in an eco­
nomic setting whose broad outlines will be determined by the
expanding program of national defense. Implicit in the program

12




is a high level of business activity, accompanied by severe dis­
turbances and dislocations not present in the preceding postwar
years.
Some initial dislocation will be involved in the conversion of
production facilities to defense needs. In many key industries, the
transition will involve no great disturbances. Steel, nonferrous
metals, lumber, textiles, chemicals, rubber products, petroleum
products, and tobacco manufactures will simply be diverted, to
whatever extent is necessary, from civilian to Government use.
Severe dislocations, however, are assuredly in store for the auto­
mobile, housing, and electric appliance industries, among others.
There are certain to be sharp reductions in allotments for a long
list of manufactured civilian goods. New home building will be
another casualty, with new starts dropping sharply under those
of 1950.
Severe readjustments are also in store for retail distribution.
Business will certainly not be as usual in a growing number of
lines as the year unfolds. Every ton of steel diverted to war and
defense production will mean that some manufacturer of civilian
items will be denied needed materials, and this derangement will
reduce the flow of goods to distributive channels and compel
many retailers to accept declining sales volumes. Automobile dis­
tributors and appliance dealers will be major casualties as the flow
of new units drops off in response to reduced production sched­
ules. Home building supply dealers will be another major cas­
ualty. On the other hand, department, drug, and jewelry stores, and
eating, drinking, and amusement establishments, among others,
should experience a sharpened demand. The primary retailing
problem for 1951 will be one of finding supplies. The survival of
many retailers will depend on their success in such quests.
Business will also be compelled to cope with a growing number
of Government controls. The controls that have already been
established are disturbing enough, but they constitute only a be­
ginning. A part of the control program will consist of sharply
higher tax burdens both on individuals and business.




13

The quest for manpower will be intensified, and the manpower
pinch is likely to become severe. Nonagricultural employment
reached 54,075,000 in December, a record total. Unemployment
was estimated at 2,229,000, or 3.6 percent of the total labor force.
It is anticipated that stepped-up draft calls will practically elimi­
nate unemployment, except that of a temporary or transitional
nature occasioned by the shifting of production for civilian uses
to production on defense orders. More intensified use of available
manpower will be necessary. A longer work week in industry,
reduction in absenteeism and turnover, avoidance of the hoarding
of labor, and direction of workers to essential occupations are
phases of such an intensified program.
In spite of rigid controls and manpower shortages, business as
a whole should experience extraordinary levels of activity in
1951. Except for some inevitable failures in the ranks of non­
defense and nonessential industries, boom conditions will charac­
terize the economy. The banks will share in this pattern of busi­
ness expansion and may anticipate a further growth in resources
and deposits.

The District had a net gain of
two members during the year
1950, compared with a net gain
of five in 1949. On December 31, 1950, membership in the Sixth
District totaled 353 banks, consisting of 283 national banks and
70 state banks. This is the largest number of member banks the
System has had in the Sixth District since 1931 when there was
a total of 390. The smallest number of such banks, since the
System’s establishment, was in 1934, when there were 309.
The increase in membership came through the admission of
two state banks and the organization of one national bank. The
new member banks are identified as follows:
14




D ate o f
A d m issio n

N am e o f B an k

L o ca tio n

D ep o sits
D ecem b e r 3 1 ,
1950

February 27

Peoples National Bank Miami Shores,
of Miami Shores
Florida $8,530,050.22

July 17

Monroe County Bank Monroeville,
Alabama 2,112,779.55

December 11 Merchants Trust &
Savings Bank

Kenner,
Louisiana

177,854.89

The only loss in membership came through the merger of the
Citizens Bank & Trust Company with the Savannah Bank & Trust
Company on February 25, under the title of the Savannah Bank
& Trust Company of Savannah, Savannah, Georgia.
The Childersburg State Bank, Childersburg, Alabama, a state
bank member, converted into the First National Bank of Chil­
dersburg, Childersburg, Alabama, on January 3, 1950.
The American National Bank of Nashville, Nashville, Tennes­
see, changed its name to the First American National Bank of
Nashville, Nashville, Tennessee, effective February 1, 1950.
The Palmer National Bank and Trust Company of Sarasota,
Florida, changed its title to Palmer First National Bank and Trust
Company of Sarasota, Sarasota, Florida, on December 1, 1950.

During 1950, the number of
par banks continued the growth
that has been characteristic of
the past several years. On December 30, 1950, there were 1,198
banks in the Sixth District, of which 595 were on the Par List.
The number included 283 national banks, 70 state bank mem­
bers, and 242 nonmember state banks. There was a gain of seven




15

in the total number of banks in the District and a gain of nineteen
in the number on the Par List.
Nonmember state banks added to the Par List in 1950 were
the following:
F lo r id a

Hastings Exchange Bank
Bank of Hollywood
Madeira Beach Bank
Okeechobee County Bank
The Punta Gorda State Bank
Citizens Bank in Sarasota

Hastings
Hollywood
Madeira Beach
Okeechobee
Punta Gorda
Sarasota

G eo r g ia

Albany Savings Bank
Albany Trust & Banking Company
The Bank of Albany
Citizens and Southern Bank of Dublin
The Citizens & Southern Bank of LaGrange
LaGrange Banking Company
St. Simons State Bank
Citizens and Southern Bank of Thomaston
Farmers and Merchants Bank
Bank of Waynesboro

Albany
Albany
Albany
Dublin
LaGrange
LaGrange
St. Simons Island
Thomaston
Washington
Waynesboro

T en n essee

Union County Bank
Citizens Bank & Trust Company
Bank of Commerce

Maynardville
Wartburg
Woodbury

Banks that are on the Par List remit at par for checks drawn
on them when received from the Federal Reserve Bank.
16




t J i x / / c f f e d e i a / t r e (J

/ ii r /

Since the outbreak of the Korean War on June 25, 1950, the
Bank’s operating responsibilities have been considerably ex­
panded. Pursuant to the Defense Production Act of 1950, ap­
proved September 8, the Board of Governors of the Federal
Reserve System was authorized to act as fiscal agent of the United
States in the making of guaranteed loans to finance contractors
operating on Government defense contracts and to exercise con­
sumer credit and real estate construction credit controls. In carry­
ing out these new responsibilities, the Board reinstituted its
Regulations W and V, referring to consumer credit controls and
guaranteed defense loans, respectively, and issued an entirely
new regulation, Regulation X , to establish restrictions on real
estate construction credit. The Board, in turn, called upon the
twelve Federal Reserve Banks to set up the necessary operating
departments to administer these regulations.
In response to the Board’s directives, the Bank made appro­
priate operating arrangements. Two additional operating depart-




17

ments were established to administer the consumer credit and
real estate construction credit controls. Provision was also made
to handle the V-Loan Program within the existing Discount
Department. A review of the operations involved in these addi­
tional responsibilities, as well as an account of the Bank’s regular
activities, is presented in the following sections.

duction Act of 1950 and the
President’s Executive Order No. 10,161 of September 9, 1950,
is substantially the same as that in effect during the Second World
War. The twelve Federal Reserve Banks are designated in the
Order as fiscal agents of the United States. As such, they are
charged with facilitating the guarantee by Government depart­
ments of loans made by banks and other lending institutions to
individuals and private corporations for the purpose of financing
contracts and other operations related to the national defense
program. The departments authorized to extend such guarantees
are the Army, the Navy, the Air Force, the Commerce, Interior,
and Agriculture Departments, and the General Services Admin­
istration.
Upon consultation with the guaranteeing agencies, the Board
of Governors revised its Regulation V, effective September 27,
1950, to establish the forms and procedures to be observed in
the operation of the program. Except for minor changes, both
the forms and procedures prescribed are identical with those used
in the wartime program.
A guaranteed loan may not bear an interest rate in excess of
5 percent. Such a loan originates with the holder of a defense
contract. His initial step is to apply for the loan at his local bank
or another financial institution. If approved by the local financing
18




institution, an application for a guarantee of the loan by the ap­
propriate agency is then filed with a Reserve Bank or Branch.
The Bank’s share in the program is essentially that of agent or
facilitator. It makes a credit investigation of the contractor and
endeavors to provide maximum protection to the guaranteeing
agency, but with due regard to the urgency of placing contracts
for the defense effort.
Following the issuance of Regulation V, the Bank handled a
large number of inquiries from banks and contractors concerning
the V-Loan program and a considerable number of applications
and other forms were distributed. Because of the necessary delays
in awarding defense production contracts, the volume of applica­
tions filed with the Bank for guarantee was relatively small at the
end of the year. From the time the regulation was first issued,
September 27, 1950, to the end of the year, the Bank handled
nine loan applications, aggregating $3,299,927. Of these appli­
cations, two had been approved, aggregating $900,000, and the
remainder were still under consideration, but no application had
been declined or denied.

The new Regulation W, the
Board of Governors’ consumer
credit control measure, became
effective on September 18, 1950. It applies to extensions of credit
granted in connection with or arising from instalment sales of
listed articles and instalment loans. It fixes minimum down pay­
ments and maximum loan values and prescribes terms of repay­
ment and maximum maturities. The listed articles are divided into
four groups, namely, automobiles, household appliances, furni­
ture, and residential repairs, alterations, or improvements.
Because of unabated upward pressures on prices, the Board of
Governors issued an amendment to the regulation, effective Octo­




19

ber 16, 1950. The amendment increased the down payments on
appliances from 15 percent to 25 percent and on furniture from
10 percent to 15 percent. It also reduced the maximum maturity
on automobiles, appliances, and furniture credits to fifteen
months, but left the maximum maturity on home-improvement
credits unchanged at thirty months.
All businesses subject to the regulation are required to file regis­
tration statements with the Federal Reserve Bank or Branch in
the District in which their main office is located. In the Sixth
Federal Reserve District, registration certificates had been issued
at the close of the year to 11,500 businesses that had filed state­
ments of registration. In the meantime the department had estab­
lished an active enforcement program and field compliance
checks had been made of more than 10 percent of the registrants.

V ie r/fY
Regulation X of the Board of
Governors establishes restric­
tions on the granting of residen­
tial real estate credits. The regulation became effective October
12, 1950, and in general was applicable to credit extensions in
connection with one and two family residences started since Au­
gust 3, 1950, and to major improvements on residences, both old
and new, where the cost exceeds $2,500. The regulation makes
some provision for exempt credits in hardship cases, disaster
areas, and in cases where commitments for credit were outstand­
ing as of October 12. Effective November 14, the regulation was
amended to provide that its prohibitions shall not apply to any
real estate construction credit extended prior to May 1, 1951,
with respect to new construction begun prior to October 12, 1950.
Under the regulation, individuals and firms engaged in the
business of extending real estate credit, either as principal or
agent, are subject to its provisions and are designated as “Regis­
20




trants.” The registrants are principally banks, savings and loan
associations, insurance companies, mortgage loan companies, and
mortgage loan brokers.
Real estate credit departments have been set up at the head
office and at the branches for administering Regulation X. Inves­
tigators have been appointed who will operate out of the respec­
tive offices, making field investigations to check for compliance
with the terms of the regulation. Such investigations will even­
tually be made of all registrants in the District.

c(? o i f w i a { i € n

Under a continuing agreement
entered into with the Commod­
ity Credit Corporation, the
Bank and its Branches served as fiscal agent and custodian for
the Commodity Credit Corporation during 1950. As fiscal agent,
the Bank receives and disburses funds for the Production and
Marketing Administration’s New Orleans Cotton Office, and the
Atlanta Area Fiscal Office, and the G FA (Georgia-Florida-Alabama) Peanut Association at Camilla, Georgia. As custodian for
the Corporation, the Bank holds in its vault and services Form A
and Form G cotton-loan notes and related collateral comprised
of warehouse receipts.
The 1949-50 cotton-loan program of the Corporation was
completed early in the fall. Of the 394,435 bales of the 1949
crop placed in the Government loan, 380,365 bales were re­
deemed by note repayments during 1950. These transactions
related only to cotton stored at warehouses in Alabama, Georgia.
South Carolina, North Carolina, Virginia, and Florida. The rest
of the cotton-producing states are served by other Federal Reserve
Banks or Branches, as well as by the PMA Commodity Office at
New Orleans. The Bank prepared and forwarded to member and
nonmember collecting banks a total of 29,597 collection letters,




21

containing cotton producers’ notes, called for repayment, amount­
ing to $56,575,380.29.
Because of the current high market price, only 1,534 bales of
the 1950 crop, grown in the states served by this Bank, were
placed in the Government loan by the end of the year. Most of
the bales pledged were of the long-staple variety. All restrictive
acreage allotments for the 1951 cotton crop have been removed,
and, in an effort to replenish the country’s short stockpile, pro­
ducers have been urged to grow 16 million bales in 1951.
In addition to cotton-loan transactions, the department re­
ceived and disbursed funds under the PMA general commodities
programs. During 1950, the department paid 10,713 sight drafts
(PMA-277), totaling $7,950,423.03. These drafts were drawn
by authorized representatives of the PMA in connection with
the Irish potato, sweet potato, corn, wheat, barley, oats, soybean,
cottonseed and farm-storage facilities programs, and were han­
dled in substantially the same manner as transit cash items.
Peanuts were the chief Government price-support commodity
handled by this Bank during the year. As fiscal agent of the Cor­
poration, the Bank received deposits and made disbursements
under the 1950 peanut loan and purchase programs from the
GFA Peanut Association at Camilla, Georgia, and for five com­
mercial banks which had entered into fiscal agency or lending
agency agreements with the Corporation. Under these programs,
the department disbursed in excess of $43 million.

Effective June 30, 1950, the
function of acting as Custodian
for the Reconstruction Finance
Corporation was discontinued at the Federal Reserve Bank of
Atlanta. This service was discontinued by mutual agreement and
at the request of the Corporation. The notes, mortgages, securi­
22




ties, and supporting documents formerly held by this Bank as
custodian have been delivered to the Atlanta Loan Agency of the
R.F.C. or other offices, pursuant to instructions.
The Corporation continues to clear checks through the Fed­
eral Reserve Bank of Atlanta, and the proceeds of such checks
are credited to the account of the Treasurer of the United States
in the same manner that deposits are accepted for other govern­
mental agencies. It also continues to use the private wire system
of the Federal Reserve Banks. A number of the Corporation’s
files are still held by this office, pending receipt of an agreement,
in satisfactory form, releasing the Federal Reserve Bank from
liability in connection with such files.

an r/

'S te lft/fo n b

Bank and public relations ac­
tivities, as in previous years,
were directed primarily to pro­
moting efficiency in the Bank’s service functions and to a better
understanding of them. Operating as it does within statutory
limitations and prescribed responsibilities, there is no occasion
for the Bank to undertake a program of new business solicitation
and service advertising as is necessary with most business enter­
prises.
The bank-visitation program occupies the most important
place in the bank and public relations activities. The number
of such visits totaled 1,118 for the year, of which 546 were to
member banks and 572 to nonmember banks. Such visitations
are more than simply courtesy calls; an effort is made to check
on the efficiency, promptness, and completeness of the Federal
Reserve Bank’s services to the banking community.
In order to maintain close touch with banking developments
of the District, the Bank takes an active interest in all meetings
where bank problems are discussed. Representatives of the Bank




23

and Branches attended all the principal banker gatherings in the
District, totaling 38 for the year, including the annual conven­
tions of the State Bankers Associations and the American Bank­
ers Association. Representatives were also present at 211 other
meetings where banking matters pertaining to the economy of the
District were discussed. Fifty-five speeches and informal talks on
various subjects were made by members of the Bank’s staff during
the year.
In its public relations, the Bank served as host for a number
of important meetings. One such meeting was held for the pur­
pose of promoting the sale of United States Savings Bonds. An­
other was the joint conference of supervisors and trust men from
the Sixth Federal Reserve District. There was a conference of
reserve city banks, held for the purpose of discussing mutual
problems, and several meetings were held for the discussion of
problems involved in the administration of Regulations X and W.
As a part of this program, members of the staff conducted a large
number of tours, at the head office and branches, of visiting
groups who were interested in seeing the various functional serv­
ices of the institution in actual operation.
The Bank continued its operations survey service, which was
established in 1949. Cost analyses and surveys were made for
19 member banks and one nonmember bank during the year.
This service is available only upon application and is designed
to supplement, and not to take the place of, any similar service
that may be available in correspondent banking relationships.

r f f if in t £ x a m h i a t r e n
At least one examination was
made of all state member banks
in the District, including their
trust departments. Although such examinations are conducted
primarily in the public interest, care is taken to ensure that the

24




institutions examined shall also be benefited. The facts developed
by examinations are used as a basis upon which constructive ac­
tion may be taken by the supervisory authorities and the manage­
ment of the banks. Reports are prepared and presented in such a
manner that they will be helpful to the directors and executive
management of the banks examined, as well as to the Federal
Reserve Bank and the Board of Governors in the discharge of
their responsibilities.
During 1950, the demand for new banks and additional
branches of established institutions continued on about the same
basis as in the preceding year. In each case where an application
for membership in the Federal Reserve System was received
from a state bank in process of organization, or when a request
for a recommendation was received from the Comptroller of the
Currency in connection with an application to organize a na­
tional bank, a representative of the Bank made a field investiga­
tion to develop information on which the Bank might base its
decision on the matter. These investigations were made with the
close co-operation of the other supervisory agencies. In passing
on an application, care is always exercised not to create an over­
banked condition in any locality and to see that the proposed
bank has adequate capital, capable management, and a favorable
earnings prospect.

V /e c A '

a n d V v /Z e r/ffm

Regulation J of the Board of
Governors of the Federal Re­
serve System and operating cir­
culars and time schedules of this Bank prescribe the terms and
conditions upon which cash items will be received and handled
for collection. Accepted as cash items are checks drawn on banks
or banking institutions collectible at par, Government checks,
and such other items as are specifically approved.




25

Scheduled for adoption on January 12, 1951, was a two-day
deferred credit schedule. The new schedule provides for a maxi­
mum period of deferment of credit of two business days from
date of receipt for cash items received from member banks for
collection and two business days from date of dispatch for cash
items routed direct by member banks to other Federal Reserve
Banks and Branches. Also scheduled for adoption on January 12,
1951, was the absorption by the Bank of the cost of telegrams
transmitted over the Federal Reserve leased wires relative to the
nonpayment, tracing, or other pertinent information on the han­
dling of cash items.
In order to promote earlier presentment of checks and other
cash items, the Bank continued to encourage the use of the uni­
form check routing symbol. A survey made toward the end of
the year revealed that 78 percent of all par checks in circulation
in the Sixth District bore the uniform routing symbol in the proper

Listing Checks on Proof Machines

26




location. A similar survey made in 1949, in comparison, indi­
cated that 74 percent of such checks bore the symbol.
Check clearing and collection activity of the Bank reached
another all-time high. The number of checks handled by the Bank
at its head office and branches during 1950 was 142,691,000.
The value of the checks handled was $59 billion.

V tn U t ic t j f u t r / C h i
(?c
Dollar volume of currency and
coin receipts and payments in­
creased substantially over 1949.
Receipts from banks amounted to $1,520 million, an increase of
$63.9 million. Payments to banks amounted to $1,264 million,
an increase of $106 million. During the year, 271.9 million pieces




Training in Sorting and Counting of Currency

27

of currency and 312.4 million pieces of coin were received and
counted, representing increases in the number of pieces handled
over the previous year of 10.8 million in currency and 15.6
million in coin.
The head office and branches received from the Federal Re­
serve Agent during 1950 a total of $435 million in Federal Re­
serve notes, an increase of $27 million over the previous year,
and the largest amount received since 1945. Net circulation of
the Bank’s Federal Reserve notes outstanding at the close of 1950
was $1,276 million. This amount outstanding represented a de­
cline of $15 million in comparison with the close of 1949, but
it is the smallest decrease that has occurred since the end of 1945,
when our circulation was at its highest peak. From $1,291 million
at the end of 1949, net circulation declined by August 31 to about
$1,242 million, and increased by December 31 to $1,276 million.
In October of this year, arrangements were made with an
armored car service for transporting Army payroll funds each
month to Fort Benning, near Columbus, Georgia, where such
funds are delivered to representatives of the three participating
banks. This arrangement is a convenience to the Columbus banks,
and the cost of this service is approximately a third less than
registered mail costs.

During 1950, the Bank made
259 advances, accommodating
39 member banks to the extent
of $430 million. Of that amount $426 million was secured by
United States Government obligations, $4 million by eligible
paper, and $377,000 by collateral not eligible for discount or
purchase.
The high point of member bank borrowings was reached on
November 27, 1950, when $25 million was outstanding. At the
28




end of the year, only one member bank was indebted to this Bank,
in the amount of $25,000, compared with one at the end of 1949,
in the amount of $30,000. As in 1949, no advances were made
during the year to nonmember banks. In most instances, ad­
vances made during the year were for short periods and were
for the purpose of covering temporary reserve deficiencies of
the member banks.
There were increases of 27.6 percent and 62.1 percent in the
number and amount, respectively, of notes discounted during
1950, over the preceding year. The discount rate on member
bank borrowings under Sections 13 and 13a of the Federal Re­
serve Act was increased from 1V percent to 13 percent by this
2
A
Bank on August 24, 1950.

a t i f l SPecu/u/teb
Because of the tremendous in­
crease in the Federal debt as
the result of war financing, the
issuance, redemption, and refunding of the various obligations
has become one of the largest financial activities in the country.
The Federal Reserve Bank of Atlanta, through its Fiscal Agency
and Securities Department, plays a very important part in this
service function.
No cash offering of unrestricted securities, except weekly bills,
was made by the Treasury Department during the year. Maturing
securities included eight issues of certificates of indebtedness, one
issue of Treasury notes, and one issue of Treasury bonds. In addi­
tion, the Treasury exercised the call privilege on three issues of
bonds. On each of these issues, a refunding privilege was offered,
which involved nine note issues and one issue of certificates of
indebtedness. In the Sixth District, there were 5,703 subscrip­
tions received in these operations, totaling over $742 million.
Beginning January 1, 1950, facilities for issuing Treasury bills




29

were in operation at each of the branch offices as well as at the
head office. During the year, 2,457 tenders were received, from
which there was allotted over $543 million. Issues of Treasury
savings notes amounted to over $47 million, and redemptions
were in excess of $48 million.
The department also handled a considerable volume of issues,
reissues, and redemptions of United States Savings Bonds. Issues
of savings bonds of all series amounted to 1,921,307 pieces, with
a maturity value of $292 million. Compared with 1949, there
was an approximate increase of 3 percent in maturity value, and
a 10 percent decrease in the number of pieces. Approximately
60 percent of the amount issued, or $174 million, was by issuing
agents. At the end of the year, there were 1,326 such agents.
Savings bonds can be reissued only by the Federal Reserve
Banks or the Treasury Department. A reissue involves an ex­
change of a new bond for one that is already outstanding. During

Punching Cards in Savings Bonds Redemption

30




the year, the head office and branches processed 12,383 such
transactions, involving 186,216 pieces and a maturity value of
$40 million.
Redemptions of savings bonds were in particularly large vol­
ume. Series A-E redemptions amounted to $329 million and num­
bered 4,187,828 pieces. Compared with 1949, there was a slight
decrease in the number of pieces redeemed, but there was an
increase of 33 percent in face value. At the end of the year, there
were 1,317 paying agents. Redemptions of Series F and G sav­
ings bonds amounted to 55,527 pieces, with a face value of $56
million.
As a service to the public, the Federal Reserve Banks are au­
thorized to hold savings bonds in custody for individuals. During
1950, this Bank handled the deposit or withdrawal of 69,749
pieces, having a maturity value of $10 million. On December 31,
1950, the Bank held 244,000 pieces with a maturity value of




Sorting Government Card Checks

31

$29 million, a slight increase in maturity value above the hold­
ings at the end of 1949.
Other volume operations included the processing of coupons;
the handling of exchanges, transfers, and redemptions of Treas­
ury issues; serving as custodian of securities deposited by member
banks and governmental agencies; and performing open-market
operations for member banks. Although diminishing in volume
because certain short-term securities are now offered without
coupons, the processing of coupons, forwarded for payment or
clipped directly from United States obligations held in custody,
requires much time and attention to detail. Such coupons paid
during the year amounted to approximately $27 million and
numbered 481,000 pieces. In its capacity as fiscal agent of the
Treasury, the Bank processed for exchange or transfer Treasury
issues in the number of 56,583 and handled the redemption of
80,201 such pieces. In its capacity as custodian, the Bank held
at the end of the year $2,925 million in face value of securities
for the account of member banks and governmental agencies.
The Bank's open-market operations were confined to making pur­
chases, sales, and clearings of United States Government securi­
ties in behalf of member banks. Such transactions during the year
numbered 7,356, representing $1,823 million in maturity value.
The change announced by the Treasury Department effective
January 1, 1950, for the reporting and depositing of Federal
taxes was put into operation. Receipts for the employers who
deposit taxes are in the form of a punch card that is processed
on tabulating machines. The tabulating operation is done in the
Atlanta office only. Collection of taxes for the calendar year 1950
was in excess of $319 million. Banks which are qualified under
Treasury Department Circulars 92 and 848 may accept tax pay­
ments from employers and make payment to the Bank by credit
in the Treasury Tax and Loan Account. In 1950, depositary
banks handled 197,581 receipts received from employers. The
procedure is continuously being refined to effect a maximum of ef­
ficiency for the employer, the Treasury Department, and the Bank.

32




On December 31, 1950, there were 848 banks qualified as
Treasury Tax and Loan depositaries in the amount of $1,437
million and holding balances in the amount of $92 million. The
number of entries in the Treasury Tax and Loan Accounts was
122,076 in 1950, an increase of 84 percent over those of 1949.
The increase was principally because of the acceptance by depos­
itaries of deposits of Federal taxes.

Personnel procedures and poli­
cies were changed during the
year to meet conditions brought
about by the expansion of the armed forces and the enactment
of new Federal legislation. Between the time the war broke out in
Korea and the end of the year, twenty-one employees left the
Bank and branches to enter military service. Accordingly, the
Bank revived its wartime policy with respect to the rights of em­
ployees entering such service. Under this policy, employees,
other than those on a temporary employment basis, are accorded
special treatment. Whether they enter upon duty with the armed
services under the Selective Service Act of 1949 or voluntarily
enlist, they are allowed re-employment rights following the end
of their military service. Moreover, upon re-employment they may
be restored to active membership in the Bank’s retirement system,
with no loss of service for the period of military leave. In addition,
they will be reimbursed for premiums paid on National Service
Life Insurance policies not in excess of $5,000 in coverage.
Finally, if they have had at least one year of employment with
the Bank, they are paid one month’s unearned salary upon enter­
ing military service.
In response to the national defense effort, there was a general
tightening of the employment situation, a tightening particularly
noticeable as the year drew to a close. The rate of turnover in­




33

creased in the second half of the year, making necessary an active
employee-recruiting effort.
Amendment on August 28, 1950, of the Social Security Act
extended the benefits of the social security program to employees
of the Federal Reserve Banks, beginning January 1, 1951. Ac­
cordingly, effective November 30, 1950, changes were made in
the retirement system of the Federal Reserve Banks to integrate
the retirement costs and benefits with those of the new coverage.
The enactment of new Federal minimum wage legislation,
effective January 25, 1950, caused minor upward salary adjust­
ments in the unskilled classification group. All salary grades were
later adjusted upward on the basis of the regular annual salary
survey made by the Personnel Department in September 1950.
The Bank continued active encouragement of study at ad­
vanced banking schools by its officers and employees. Twelve
staff members, six of whom received their graduate diplomas,
were sent to the summer session of the Graduate School of Bank­
ing at Rutgers University. Two other staff members were sent
to the new Banking School of the South at Louisiana State Uni­
versity which held its first session for graduate banking students
in June. The new school is scheduled to graduate its first students
at the close of the 1952 summer session.

For the past three years this
Bank has had an active pro­
gram that includes agricultural
relations. This program was begun in recognition of the impor­
tant role played by farming in the economy of the Sixth Federal
Reserve District and of the desirability of assisting member banks
in helping farmers to make needed changes in their farming meth­
ods. Activating the program is one of the many functions per­
formed by the Research Department.
34




The agricultural relations program is conducted in close co­
operation with the agricultural committees of the State Bankers
Associations. One phase of such co-operation is represented by
banker-farmer meetings which are sponsored by the State Bank­
ers Associations, the State Agricultural Colleges, and the Bank.
During the year, three such meetings were held in Florida, two in
Alabama, three in Mississippi, five in Tennessee, and three in
Louisiana. Most of these meetings were held on farms where the
results of improved pastures, proper forestry practices, and sound
bank credit could be demonstrated. The Bank also assisted in
planning and conducting a number of farm credit schools, in
co-operation with the Georgia and Florida Bankers Associations.
Much of the department’s work is for use within the Bank and
within the System. In addition to carrying on this work and pub­
lishing the Bank’s Monthly Review and the Bankers Farm Bul­
letin, the Department met numerous requests for economic data
by commercial banks, colleges, trade organizations, Federal and
state agencies, civic clubs, and individuals.

fo/eclt'tm ty atw f
Frank H. Neely, Chairman of
the Board of Rich’s, Inc., At­
lanta, Georgia, was appointed
by the Board of Governors of the Federal Reserve System a Class
C director of the Federal Reserve Bank of Atlanta for an addi­
tional term of three years, beginning January 1, 1951. Mr. Neely
was redesignated by the Board of Governors as Federal Reserve
Agent and Chairman of the Board of Directors of the Federal
Reserve Bank of Atlanta for the year 1951. Rufus C. Harris,
President of The Tulane University of Louisiana, New Orleans,
Louisiana, was reappointed by the Board of Governors as Deputy
Chairman of the Board of Directors for the year 1951.
At elections held in October, Roland L. Adams, President,
^




35

Bank of York, York, Alabama, was chosen by member banks
in Group 3 as a Class A director, and Alfred Bird Freeman,
Chairman of the Board, Louisiana Coca-Cola Bottling Company,
Ltd., New Orleans, Louisiana, was re-elected by member banks
in Group 1 as a Class B Director. Each of these directors was
elected for a term of three years, beginning January 1, 1951.
Appointed by the Board of Governors of the Federal Reserve
System, each for a term of three years beginning January 1, 1951,
were the following branch directors: Birmingham Branch, John
M. Gallalee, President, University of Alabama, Tuscaloosa, Ala­
bama; Jacksonville Branch, Marshall F. Howell, Vice President,
Bond-Howell Lumber Company, Jacksonville, Florida; Nashville
Branch, C. E. Brehm, President, University of Tennessee, Knox­
ville, Tennessee; New Orleans Branch, H. G. Chalkley, Jr., Pres­
ident, Sweet Lake Land & Oil Company, Inc., Lake Charles,
Louisiana.
The Board of Directors of the Federal Reserve Bank of Atlanta
also appointed four branch directors. These appointments, each
fora three-year term, beginning January 1, 1951, were as follows:
Birmingham Branch, T. J. Cottingham, President, State National
Bank of Decatur, Decatur, Alabama; Jacksonville Branch, Clem­
ent B. Chinn, President, The First National Bank of Miami,
Miami, Florida; Nashville Branch, G. C. Graves, President, The
First National Bank of Athens, Athens, Tennessee; New Orleans
Branch, William C. Carter, President, Gulf National Bank of
Gulfport, Gulfport, Mississippi.
As a member of the Federal Advisory Council, representing
the Sixth Federal Reserve District, for a term of one year begin­
ning January 1, 1951, the Board of Directors of the Federal Re­
serve Bank of Atlanta appointed Paul M. Davis, Chairman of the
Board of Directors of the First American National Bank of Nash­
ville, Nashville, Tennessee.
To serve as members of the Industrial Advisory Committee for
the Sixth District, the Board of Directors of the Federal Reserve
Bank of Atlanta re-appointed for the year 1951, John E. Sanford,
36




President, Armour Fertilizer Works, Atlanta, Georgia; George
Winship, President, Fulton Supply Company, Atlanta, Georgia;
W. W. French, Chairman of the Board, Moore-Handley Hard­
ware Company, Inc., Birmingham, Alabama; Luther Randall,
President, Randall Brothers, Inc., Atlanta, Georgia; and I. C.
Milner, President, Gate City Mills Company, East Point, Geor­
gia. Mr. Sanford is Chairman of the committee, and Mr. Milner
is Deputy Chairman.
Three changes were made in the Bank’s official staff during
the year. R. DeWitt Adams, Acting General Auditor, was ap­
pointed General Auditor. L. B. Raisty, Senior Economist, was
appointed Assistant Vice President. F. C. Vasterling, Assistant
Cashier, New Orleans Branch, retired.







yixtA ityetlelaltw t ve (/WifW

C
DIRECTORS
in i

OFFICERS
The Bank has nine directors, divided into three classes. Class A
Directors are elected by the stockholding banks and in practice
are officers of member banks. Class B Directors are also elected
by member banks but may not be operating bankers. The Board
of Governors of the Federal Reserve System appoints the Class C
Directors, one of whom is designated as Chairman and another
as Deputy Chairman. No Class C Director may be an officer,
director, employee, or stockholder of any bank.
For the purpose of electing Class A and Class B Directors, the
member banks are divided into three groups, representing large
banks, middle-sized banks, and small banks. Each group elects
one Class A and one Class B Director.
Each of the four branches has a Board of Directors of seven
members. Four of these members are appointed by the parent
Board and in practice are operating officers of member banks and
serve only one term. The other three directors are appointed from
nonbanking fields by the Board of Governors.




39

> \e>et re
J
(

c

. r /f/a n /a

IIIIIEITIIIIS ^

Elected by M em ber Banks
Term Expires
December 31

^

^ ^

Group

R. C lyde W i l

l ia m s

1951

........................................................................................ 1

President. The First National Bank of Atlanta
Atlanta. Georgia
L e s l ie R . D r

iv e r

1952

............................................................................................... 2

President. The First National Bank in Bristol
Bristol, Tennessee
R o la n d

L.

1953

A d a m s ............................................................................................... 3

President, Bank of York
York, Alabama

C la ss B
Elected by M em ber B anks

1951

J. A. M c C r a r y ......................................................................................... 2
Vice President and Treasurer, J. B. McCrary Company, Inc.
Decatur, Georgia
D onald C o

m e r

1952

...................................................................................................... 3

Chairman of the Board, Avondale Mills
Birmingham, Alabama
A l f r e d B ir d F r

e e m a n

1953

.................................................................................. 1

Chairman of the Board, Louisiana Coca-Cola Bottling Company, Ltd.
New Orleans, Louisiana

C l a ss C
Appointed by the B oard o f Governors o f the
F ederal Reserve System
F r a n k H . N e e l y , C h a irm a n ..................................................................

.

1953

.

1952

.

1951

Chairman of the Board, Rich’s, Inc.
Atlanta, Georgia
R u f u s C. H a r r i s , Deputy C h a ir m a n ................................................

President, The Tulane University of Louisiana
New Orleans, Louisiana
P a u l E. R e i n h o l d ................................................................................................

President and Director, Foremost Dairies, Inc.
Jacksonville, Florida

40




I

"N

W . S . M c L a r i n , J r . , President
L . M . C l a r k , F irst Vice President

V. K . B o w m a n
Vice President

S. P. SC H U E SSL E R
Vice President

E. L . R a uber

J. E . D

H a ro ld T. P a tte r s o n

R. D e W itt A d am s

en m ark

Vice President

D irector o f Research
G eneral Auditor

G eneral Counsel

J. H . B o w d e n
A ssistant Vice President

I. H. M a r t i n
A ssistant Vice President

C. R. C am p

R oy E . M

A ssistant Vice President

il l in g

A ssistant Vice President
E . C . R a in e y

F . H . M a r t in

A ssistant Vice President

A ssistant Vice President

L . B . R a i s t y , A ssistant Vice President

P a u l M . D a v is

Chairman of the Board
First American National Bank of Nashville
Nashville, Tennessee

f M ber Federal )
em
C Idvisorv Council

Industrial Idvisiirvl'oniniillec

J o h n E. S a n f o r d , Chairman

President
Armour Fertilizer Works
Atlanta, Georgia
W. W. F re n c h

Chairman of the Board
Moore-Handley Hardware Co., Inc.
Birmingham, Alabama
I. C. M i l n e r
President
Gate City Mills Company
East Point, Georgia




L u th e r R a n d a ll

President
Randall Brothers, Inc.
Atlanta, Georgia
G e o r g e W in s h ip

President
Fulton Supply Company
Atlanta, Georgia

41

of the Federal Reserve System
Term Expires
December 31
T h a d H o l t , C hairm an ............................................................................................... 1 9 5 2

President and Treasurer, Voice of Alabama, Inc. (Radio Station WAPI)
Birmingham, Alabama
W m . H ow ard S m

it h

............................................................................................................. 1951

President, McQueen-Smith Farms
Prattville, Alabama
J o h n M. G a l l a l e e .................................................................................................................... 1953

President, University of Alabama
Tuscaloosa, Alabama
Appointed by Board o f D irectors,
Federal Reserve Bank o f A tlanta
D. C . W a d s w o r t h .................................................................................................................... 1951
President, The American National Bank of Gadsden
Gadsden, Alabama
J. B . B a r n e t t ........................................................................................................................... 1952
President, The First National Bank of Monroeville
Monroeville, Alabama
.

1952

.

A . M . S h o o k ..................................................................................

1953

President, Security-Commercial Bank
Birmingham, Alabama
I . J. C o t t i n g h a m ......................................................
President. State National Bank of Decatur
Decatur, Alabama

limi'KRS

\

P. L . T . B e a v e r s , Vice President an d M anager

H . C . F razer

H. J. U

Assistant M anager

42




rquhart

C ashier

L . W . S tarr

Assistant Cashier

A ppointed by the Board of Governors
of the Federal Reserve System
Term Expires
December 31
J. H i l l i s M i l l e r , C h a irm a n ................................................................................... 1951
President, University of Florida
Gainesville, Florida
H ow ard P h

il l ip s

........................................................................................

1952

Vice President and General Manager, Dr. P. Phillips Company
Orlando, Florida
M a r sh a ll F . H o w

e l l .............................................................................................................1 9 5 3

Vice President, Bond-Howell Lumber Company
Jacksonville, Florida
A ppointed by B oard of D irectors,
F ederal Reserve Bank of A tlanta
J. D . C a m p ................................................................................................................. 1951
President, Broward National Bank of Fort Lauderdale
Fort Lauderdale, Florida
J. E . B r y a n ................................................................................................................. 1952
President, Union Trust Company
St. Petersburg, Florida
N . R a y C a r r o l l ............................................................
President, The First National Bank of Kissimmee
Kissimmee, Florida

.1952

C l e m e n t B . C h i n n .............................................................

1953

President, The First National Bank of Miami
Miami. Florida

T. A . L a n f o r d , Vice President and M anager
T. C . C l a r k
C ashier

J. W y ly S n y d e r
C . M aso n F o r d
Assistant Cashier
Assistant Cashier




43

- I ff .*/r e /fa

DIRECTORS

\

A ppointed by the B oard o f Governors
o f the Federal Reserve System
Term Expires
December 31

H. C . M e a c h a m , C h a ir m a n ................................................................................... 1951
Agriculture and Livestock
Franklin, Tennessee
W . B r a t t e n E v a n s ....................................................................................................................1 9 5 2

President, Tennessee Enamel Manufacturing Company
Nashville, Tennessee.
C. E. Br e h

m

........................................................................................

.

19 5 3

President, University of Tennessee
Knoxville, Tennessee
Appointed by Board o f Directors,
Federal Reserve Bank of A tlanta
P a r k e s A r m i s t e a d ..................................................................................................... 1951
President, First American National Bank of Nashville
Nashville, Tennessee
T . L . C a t h e y .........................................

.

1952

.

1952

.

1953

President. Peoples and Union Bank
Lewisburg, Tennessee
T h o m a s D. B r a b s o n ......................................................

President, The First National Bank of Greeneville
Greeneville, Tennessee
G . C . G r a v e s ............................................................

President, The First National Bank of Athens
Athens. Tennessee

OFFICERS

X

J o e l B . F o r t , J r . , Vice President and M anager

E. R . H a r r i s o n
Cashier

44




R o b e r t E. M o o d y , J r .

A ssistant Cashier

lAet-w 0 i/e a tU

Appointed by the B oard o f Governors

/

(

ta tic f

in iin T iiitv \
W ill)

\

o f the Federal Reserve System
Term Expires
December 31
E . O. B a t s o n , C h a ir m a n ......................................................................................... 1952

President, Batson-McGehee Company, Inc.
Millard, Mississippi
J o h n J . S h a f f e r , J r ................................................................................................... 1951

Agriculture and Farm Machinery
Ellendale, Louisiana
H. G . C h a l k l e y , J r ................................................................................................... 1953
President, Sweet Lake Land and Oil Company, Inc.
Lake Charles, Louisiana
Appointed by B oard of D irectors,
F ederal Reserve Bank o f Atlanta
J a m e s C. B o l t o n ..................................................................................................... 1951

President, Rapides Bank & Trust Company in Alexandria
Alexandria, Louisiana
P e r c y H . S i t g e s ..................................................................................................... 1952

President, Louisiana Bank & Trust Company
New Orleans, Louisiana
E l b e r t E . M o o r e .................................................................

.1952

President, Louisiana National Bank of Baton Rouge
Baton Rouge, Louisiana
W i l l i a m C . C a r t e r ......................................................

.1953

President, Gulf National Bank of Gulfport
Gulfport, Mississippi

^ OFFICE I!,S \
E . P . P a r i s , Vice President and M anager

M. L. S h a w
W. H . S e w e l l
A ssistant M anager
Cashier




L. Y. C h a p m a n
A ssistant Cashier

45

(I/m // 'tyef/e'ut/ dfiebetve'
f c ? p ,

FINANCIAL
Ml

VOLUME REPORTS
Reserve Position of Neiber Banks
S e m im o n t h l y P e r io d E

Required
Reserves

State
ALABAM A

nded

D

Actual
Reserves

ecem ber

31,1950

Excess
Reserves

$107,800,000 $120,900,000 $13,100,000

Percent of Actual
Reserves to
Required Reserves
112.2

FLORIDA

148,500,000

161,700,000

13,200,000

108.9

GEORGIA

151,700,000

159,600,000

7,900,000

105.2

LOUISIANA

135,700,000

153,500,000

17,800,000

113.1

MISSISSIPPI

21,500,000

24,100,000

2,600,000

112.1

TENNESSEE

98,600,000

109,500,000

10,900,000

111.1

$663,800,000 $729,300,000 $65,500,000

109.9

DISTRICT

46




Currency aid Coin Operations Mail Bank and Branches
N um ber

of

P ie c e s R e c e iv e d
by

and C o unted
M onth s

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

.
.
.
.
.
.
.
.
.
.
.
.

Total

.

R

.
.

.
.

. . .
. .
. .
. .
. .
. .
. . .
. . .
. . .
. .
.

e c e ip t s f r o m

.

fo r

1950

and

(In Thousands)

1949,

Coin

.

1950
22,181
21,465
25,493
21,495
23,980
21,535
20,638
23,518
22,412
22,842
23,292
23,108

1949
24,368
24,025
24,030
23,000
21,688
20,401
19,116
21,555
20,856
20,426
20,379
21,279

1950
30,861
24,641
25,230
21,899
28,351
26,265
24,287
29,265
27,619
24,562
26,289
23,169

1949
24,703
28,478
25,953
24,801
25,067
25,798
21,113
25,945
24,363
23,564
22,966
24,088

.

271,959

261,123

312,438

296,839

.
.
.
.
.
.
.

B anks

and

P a y m en ts to B
by M o nth s

Receipts

anks fo r

(In Thousands)

1950

1949,

Payments

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

1950
. $ 135,915
120,748
146,378
119,937
124,848
117,774
119,700
126,646
114,736
121,670
126,689
144,905

1949
$ 146,309
123,622
144,890
120,843
110,574
112,620
107,674
114,510
110,038
108,202
115,211
141,529

1950
$ 79,263
103,368
119,626
91,124
96,959
96,093
96,072
105,749
113,437
118,112
112,076
132,160

Total

. $1,519,946

$1,456,022

$1,264,039




and

1949
$ 67,946
85,021
108,498
94,459
93,832
90,621
97,142
94,404
98,211
103,466
100,245
124,421
$1,158,266

47

STATEMENT OF CONDITION
ASSETS
Gold Certificates......................
Redemption Fund for Federal Re­
serve N o te s............................
Total Gold Certificate Reserves
Other C a sh ..................................
Total Cash . . . . . .
Discounts and Advances . .
Industrial L o a n s .......................
U. S. Government Securities—
System Account . . . .
Total Loans and Securities .
Federal Reserve Notes of Other
Banks
Uncollected Cash Items
Bank Premises (Net)
Other Assets . . .
T otal A

sse t s

December 31,1950 December 31,1949
$ 890,799,772.39 $ 995,700,383.92
39,540,790.00
$ 930,340,562.39
18,763,112.38
$ 949,103,674.77
25,000.00
6,596.90

39,850,752.57
$1,035,551,136.49
21,131,989.40
$1,056,683,125.89
2,879,500.00

1,110,085,000.00
$ 1,110,116,596.90

1,012,460,000.00
$1,015,339,500.00

20,312,250.00
277,132,397.83
1,720,100.56
6,328,745.61
$2,364,713,765.67

18,865,250.00
211,620,743.98
1,523,303.62
5,500,352.59
$2,309,532,276.08

LIA BILITIES
Federal Reserve Notes in Actual
$1,276,091,240.00
C irculation ............................
Deposits:
Member Bank Reserve Accounts 740,421,957.53
U. S. Treasurer—General Ac­
38,559,111.47
count ..................................
37,283,400.00
F o r e ig n ..................................
42,761,729.66
Other D eposits.......................
$ 859,026,198.66
Total Deposits . . . .
191,070,072.32
Deferred Availability Cash Items
200,073.95
Other L ia b ilitie s.......................
T o ta l L ia b il it ie s . .
$2,326,387,584.93
CA PITAL ACCOUNTS
Capital Paid In . . .
Surplus (Section 7) . .
Surplus (Section 13b)
Reserves for Contingencies
Total Capital Accounts
T o tal L




$1,290,998,620.00
685,366,469.27
50,492,636.50
31,184,600.00
31,948,301.66
$ 798,992,007.43
182,688,791.71
455,043.24
$2,273,134,462.38

$

8,239,800.00
21,193,500.54
762,425.68
6,202,087.48
36,397,813.70

ia b il it ie s a n d

C a p it a l A

48

$

8,954,450.00
22,368,597.95
762,425.68
6,240,707.11
38,326,180.74

0

ccounts

$2,364,713,765.67

$2,309,532,276.08

EARNINGS AND EXPENSES
Current Earnings:
Discounts and Advances . . .
Industrial L o a n s ............................
Industrial Loan Commitments . .
U. S. Government Securities— System
A ccount.......................................
All O t h e r .......................................
Total Current Earnings . .

$

1950
78,261.81
128.93

$

0

1949
110,508.60

0

713.55

14,611,876.32
22,222.89
$14,712,489.95

16,734,213.52
34,512.89
$16,879,948.56

Current E x p e n s e s ............................
Current Net Earnings . . .

4,342,755.89
$10,369,734.06

4,093,924.20
$12,786,024.36

Net Addition to Current Net Earnings
T o t a l .......................................

1,942,583.76
$12,312,317.82

1,534,179.68
$14,320,204.04

$

40,434.18

$ 2,178,867.89

10,575,575.12
$10,616,009.30

10,490,251.54
$12,669,119.43

Net Earnings after Reserves and Pay­
ment to U.S.Treasury......................
$ 1,696,308.52

$ 1,651,084.61

Other Deductions:
Transferred to Reserve for Contin­
gencies ........................................
Paid to U. S. Treasury (Interest on
Outstanding Federal Reserve
N o t e s ) .......................................
T o t a l .......................................

Distribution of Net Earnings:
Dividends P a i d ............................
Transferred to Surplus (Section 7)
Surplus (Section 7 ):
Surplus January 1 .......................
Transferred to Surplus— As Above
Surplus December 3 1 ......................




$

521,211.11
1,175,097.41
$ 1,696,308.52

$

$21,193,500.54
1,175,097.41
$22,368,597.95

$20,027,863.59
1.165.636.95
$21,193,500.54

485,447.66
1.165.636.95
$ 1,651,084.61

MEMBER B i M COMPARATIVE STATEMENT
[Amounts in thousands of dollars]
ASSETS
Loans and in v estm en ts.........................................
Loans (including o v e rd ra fts)........................
U. S. Government obligations, direct
and g u a r a n te e d ..........................................
Obligations of States and political subdivisions
Other bonds, notes and debentures .
Corporate stocks (including Federal
Reserve Bank s to c k )....................................
Reserves, cash, and bank b a la n c e s ........................
Bank premises owned and furniture and fixtures .
Other real estate o w n e d ..........................................
Investments and other assets indirectly represent­
ing bank premises and other real estate .
Customers’ liability on acceptances........................
Other assets.................................................................
Total assets .
. . .

December 30
1950

December 31
1949

$4,753,841
1,999,595

$4,412,170
1,610,669

2,286,834
386,448
70,778

2,371,942
344,351
75,476

10,186
1,811,039
59,406
1,448

9,732
1,622,125
55,405
1,612

1,722
6,947
19,914
$6j654j317

889
8,654
17,236
$6,118,091

$5,105,298
3,544,179
94,136
624,650
781,084

$4,601,939
3,179,581
83,086
598,594
689,979

61,249
1,111,802
6,217,100

50,699
1,109,613
5,711,552

175
8,634
37,773
$6,263,682

30
11,869
31,259
$5,754,710

$ 122,753
182,903
60,893
24,086
$ 390,635
$6,654,317

$ 115,713
164,230
59,249
24,189
$ 363,381
$6,118,091

LIABILITIES
Demand d e p o sits.....................................................
Individuals, partnerships, and corporations .
U. S. G overnm ent..........................................
States and political subdivisions . . . .
Banks in U. S. and foreign countries . . .
Certified and officers* checks, cash letters of
credit and travelers’ checks, etc. .
Total d e p o s it s ..........................................
Bills payable, rediscounts, and other liabilities for
borrowed m o n e y ................................................
Acceptances outstanding .
..............................
Other liabilities . . .
..............................
Total liabilities .
. . .
CAPITAL ACCOUNTS
. . .
C a p it a l...................................
S u rp lu s........................
....................................
Undivided p ro fits......................................................
Other capital accounts
. . .
. . . .
Total capital accounts..............................
Total liabilities and capital accounts .

50




Changes in M bership 1 -1 -1 5 1
em
9 3 91
1943 1944 1945 1946 1947 1948 1949 1950
M embership, beginning o f year
Additions during year:
Organization o f National
banks ....................................
Conversion of State banks to
National b an k s*. . . .
Adm ission o f State banks .
Resumption following
s u s p e n s i o n ........................
Total additions .
Losses during year:
M ergers between N ational
banks ....................................
Mergers between State banks
Suspension or insolvency . .
Withdrawal of State ban k s*.
Voluntary liquidation .
Conversion of member to
nonmember b a n k s** .
Total losses . . . .
Net change during year .

.

.

Membership end of year .
N ational b a n k s ........................
State b a n k s ..............................

318

316

317

325

333

340

346

351

0

4

0

0

3

2

0

1

1
3

3
3

4
7

6
5

1
6

2
4

3
5

1
2

0
4

0
10

0
11

0
11

0
10

0
8

0
8

0
4

0
0
0
2
0

0
0
0
8
1

0
0
0
1
2

0
0
0
3
0

1
0
0
1
1

0
0
0
1
1

1
0
0
2
0

0
1
0
1
0

4
6

0
9

0
3

0
3

0
3

0
2

0
3

0
2

-2

+ 1

+ 8

+ 8

+ 7

+ 6

+ 5

+ 2

316
260
56

317
266
51

325
268
57

333
274

340
276
64

346
279
67

351
281

353
283
70

59

70

*Includes conversion of State member banks to National banks.
* * Includes conversion of National banks to nonmember banks, and absorption of
members by nonmembers.