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FIFTH ANNUAL REPORT
OF THE

FEDERAL RESERVE BANK
OF BOSTON
FOR THE YEAR ENDED DECEMBER 31, 1919




BOSTON, MASS

LETTER OF TRANS M ITTAL.

BOSTON, MASS.,

January 29, 1920.

SIR:

I have the honor to submit herewith the Fifth Annual Report of
the Federal Reserve Bank of Boston covering the operations of that bank
for the period from January 1, 1919, to December 31, 1919.
Respectfully yours,
FREDERIC H. CURTISS,

Chairman and Federal Reserve Agent.
Hon.

W. P. G. HARDING,

Governor, Federal Reserve Board,
Washington, D. C.




TABLE OF CONTENTS

Page.

Introduction
Review of industrial conditions during 1919
Balance Sheet
Financial results of operations
Discount rates
Loan and Discount Operations
(a) Trade acceptances
(b) Bankers' acceptances
(c) United States securities
(d) Credit department and bank examinations
Reserve Position
(a) Bank of England Sterling accounts
Relations with commercial banks
Deposits
Currency
(a) Federal Reserve notes
(b) Federal Reserve bank notes
Collection of checks
Internal Organization
(a) Banking quarters
(b) Federal Reserve Society
Operations as fiscal agent of the United States Government
(a) Certificates of indebtedness
(b) Victory loan
(c) War savings division
(d) Custody department
Special War Activities
(a) Warfinancecorporation
(b) Foreign exchange
Conclusion

7
8
10
10
11
11
13
14
14
15
16
16
17
18
19
19
20
20
20
21
22
24
25
26
26
27
27
28

SCHEDULES.

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.

Comparative balance sheet
Expense and income
Distribution of earnings
Discount and loan transactions, 1919
Maturities of invested funds on the last Friday of each month, 1919
Reserve position on the first of each month
Rediscounts with other Federal Reserve Banks
Summary of weekly transactions in the gold settlement fund with other
Federal Reserve Banks, January 1 to December 31, 1919
Currrency transactions
Federal Reserve Bank notes, December 31, 1919
Federal Reserve notes issued by Federal Reserve Agent
Federal Reserve notes issued and retired by denominations
Federal Reserve note movement between districts, 1919
Available supply of Federal Reserve notes on December 31, 1919
Amount of checks handled by the transit department
Custody department —• Volume of securities handled, 1919
Custody department — Character of securities held
Collateral department — Coupons cut, 1919




3

30
31
31
32
33
33
34
34
35
35
35
36
36
37
37
38
38
38

4

TABLE OF CONTENTS.

19. Items of interest from the schedules of this and other official reports in connection with the fiscal operation of the United States in this district
during 1919
20. Certificates of indebtedness and payments
21. Distribution by issues of certificates of indebtedness
22. Subscriptions to certificates of indebtedness classified by states
23. Subscriptions to Victory notes by days
24. Subscriptions to Liberty loans and Victory notes classified by states
25. Subscriptions to Liberty loans and Victory notes classified by number of
subscribers
26. Classification of subscriptions by amounts — Victory Liberty loan
27. Sales of War savings stamps
28. Character of payments on Government loans
29. Liberty loan conversions
30. Bond and certificate deliveries
31. United States certificates of indebtedness redeemed from January 1, 1919 to
December 31, 1919
32. Coupons redeemed during 1919
33. Government deposits, 1919
34. War Finance Corporation
35. Change in membership of national banks
36. List of member trust companies
37. Member trust companies compared with eligible non-member trust companies,
38. Amounts due to member banks and rediscounts by states
39. Reserves of national banks in New England as reported by the Comptroller
of the Currency
40. Condition of national banks in New England on dates of Comptroller's calls .
41. Comparison of items reported by member banks in selected cities on the
first Friday of each month — member banks in four cities outside of
Boston
.
42. Acceptance liability of national banks in New England
43. Member banks authorized to accept drafts and bills of exchange up to 100%
of their capital and surplus
44. Other accepting member banks
45. Non-member accepting banks and other acceptors in this district
46. Acceptances outstanding, November 17, 1919
47. Banks granted fiduciary powers under the Federal Reserve Act
48. Discount rates
49. Money rates in Boston, 1919
50. Debits to depositors' accounts by the Clearing House banks in the larger
cities of this district
51. Building permits for new construction issued in leading cities in this district,
52. Business through the Port of Boston
53. Commercial failures in New England
54. Number of employees in the various departments—-December 31, 1919,
and December 31, 1918

Page.

38
39
40
41
41
41
41
42
42
43
44
44
45
46
46
46
46
47
47
48
48
48
49
50
50
51
51
51
52
53
53
54
55
55
56
56

CHARTS.

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.

Total earning assets at close of business each Friday
Bills discounted at close of business each Friday
Bills discounted secured by United States war obligations
Acceptances held
Gold reserves held
Percentage of reserve to combined note and deposit liability
Federal Reserve notes in circulation
Deposits of Treasurer of United States
Due from depositaries of public money
Member banks' reserve deposits

57
58
59
60
61
62
63
64
65
66

EXHIBITS.

A. Movement of earning assets during year
B. Movement of gold and cash reserves, net deposits, etc., during year




68, 69
70, 71

FEDERAL RESERVE BANK OF BOSTON.
OFFICERS AND DIRECTORS
1980

Officers
FREDERIC H. CURTISS, Federal Reserve

CHARLES A. MORSS, Governor.

Agent.

CHARLES E. SPENCER, Jr., Deputy Gov-

ernor.

CHARLES F. GETTEMY, Assistant Federal

CHESTER C. BULLEN, Deputy Governor.
WILLIAM WILLETT, Cashier.

Reserve Agent.
HARRY F. CURRIER, Auditor.

FRANK W. CHASE, Assistant Cashier.
ELLIS G, HULT, Assistant Cashier.
WILLIAM N. KENYON, Assistant Cashier.
ERNEST M. LEAVITT, Assistant Cashier.
HARRY A. SAUNDERS, Assistant Cashier.
L. WALLACE SWEETSER, Assistant Cashier.

Class and
group

Directors

A 1 THOMAS P. BEAL,
A 2 F. S. CHAMBERLAIN,

A 3 EDWARD S. KENNARD,
B 1 PHILIP R. ALLEN,

Term
Expires

1920
President, Second National Bank, Boston, Mass.
Cashier, New Britain National
New Britain, Ct. 1922
Bank,
1921
Cashier, Rumford National Bank, Rumford, Me.
Paper Manufacturer —
Bird & Sons,

E.Walpole, Mass. 1920
1922
Treasurer, Vermont Maible Co. Proctor, Vt.
Worcester, Mass. 1921
B 3 CHAS. G. WASHBURN,
President, Wire Goods Co.
1920
C
FREDERIC H. CURTISS, Chairman,
Boston, Mass.
C
ALLEN HOLLIS,
Concord, N. H. 1921
Vice-Chairman, Lawyer,
C
JESSE H. METCALF,
Providence, R. I. 1922
President, Wanskuck Co.
B 2 EDMUND R. MORSE,




ARTHUR H. WEED, Counsel and Secretary.

Member of Advisory

Council

PHILIP STOCKTON,

President, Old Colony Trust Company.




FIFTH ANNUAL REPORT OF THE FEDERAL
RESERVE BANK OF BOSTON.
INTRODUCTION.

Active hostilities with the Central Powers of Europe ceased with the
signing of the armistice on November 11, 1918, but the after-effects of
the Great World War dominated finance and industry in this Federal
Reserve District during the entire year of 1919. Well into the New Year
the industries of New England were occupied on Government orders and
the settlement and adjustment of Government contracts, but gradually, as
spring approached, they were able to readjust themselves from a war to. a
peace basis, domestic demands bringing increasing business, so that throughout the year almost all industries were running at top notch, a condition
which, with increasing costs in labor and raw material, called for unusually
heavy credit expansion. This demand for credit was reflected in the loans
of the Federal Reserve Bank of Boston.
Throughout the year the financing of the war debts incurred by the
Government, while decreasing in volume toward the year's end, overshadowed and took precedence over the local credit situation, influencing
the adjustment of discount rates and making it difficult for the Federal
Reserve Bank to adequately control commercial credits or to encourage the
reduction of loans made by banks in connection with subscriptions to
Government securities.
During the year there was but one public offering of long-term securities, — that of the Fifth or Victory Liberty Loan in April, 1919 but shorttime borrowings of the Treasury Department on loan and tax certificates
of indebtedness were continuous throughout the year, and these shorttime notes, together with the new income and excess profits taxes,1 placed
a continuous and insistent demand upon the banks of the district which,
with the increased commercial demands, made recourse to the Federal
Reserve Bank heavier than in any previous year. In order, therefore, to
maintain reserves above the legal limit this bank was obliged frequently
to rediscount2 with other Federal Reserve Banks of the system; on the
other hand, this bank did not rediscount for any other Federal Reserve
Bank.




1 See Schedule 19.

2 See Schedule 7.

8

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

REVIEW OF INDUSTRIAL CONDITIONS DURING 1 9 1 9 .

The year opened with retail trade extremely good, stimulated by patronage of wage earners who had shown no disposition to curtail their expenditures and whose purchases included many luxuries,— a condition which
offered opportunity for retailers to dispose of stocks at prevalent high
prices; but in view of uncertainty concerning the future, dealers were
generally cautious in placing orders and replenishing depleted inventories.
Merchants were expecting lower prices, and, as a result, manufacturers
and distributors found their activities greatly restricted pending the
establishment of a more stable price level, while curtailment of production
was releasing many employees; some mills reporting an over-supply of
help as high as 33 1-3 per cent. The demobilization of troops, and the
dismissal of civilian employees engaged on war work with but few increased domestic activities to absorb them, brought about a condition in
some localities which threatened for a time to be serious; in Springfield
and Boston there were demonstrations by unemployed soldiers resulting
in the appointment of committees to handle the problem, and it was
estimated that there were several thousand out of work in Boston.
By another month, however, there was apparent throughout the entire
district less apprehension regarding future conditions; confidence was
beginning to return and there was more general inclination to enter into
future commitments; by April the turn in the tide was increasingly evident each week and the impression was becoming general that no lower
commodity price level was likely to be established for some time to come.
Buyers were encouraged to place orders with more confidence, and manufacturers went ahead with less hesitation. There was still, however, a
considerable amount of unemployment in certain localities which had
enjoyed large war contracts that had attracted employees from distant
places by high wages; on the other hand, skilled labor of many kinds was
scarce and some manufacturers were obliged to restrict production because
of inability to secure the proper kind of help. But the return of workmen
to their old homes and employment, and the absorption of the returning
soldiers was, nevertheless, proceeding steadily, and fear of widespread
distress on account of general unemployment was vanishing so rapidly
that employers were everywhere being met with demands for shorter
hours or more pay or both, and there was a general disposition to grant,
and even to anticipate in many instances, these demands.
The summer found manufacturers and merchants in practically all lines
doing a large business, and buyers who had withheld orders awaiting lower
prices were now purchasing heavily in anticipation of costs advancing still
further; moreover, the removal of numerous government restrictions had
gone far toward substantiating the belief that the price level would be no
lower until production was sufficient to fill the vacuum in inventories



ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

9

created during the war. But the raw material market and labor unrest
were creating new problems which our manufacturers faced with increasing
difficulty and which would have been well nigh unsurmountable had it not
been for the fact that orders continued to come in, the wholesaler, jobber
and retailer having such demands from the public that they did not hesitate to place orders even on the higher level. The general business situation was, nevertheless, unsettled, for, in spite of boundless activity and
surface prosperity, the industrial unrest by the late summer overshadowed
all other factors. The constant threat of strikes, and the interference with
transportation facilities, traction and railroad, had begun to be a burden
on all lines of industry, causing a general slowing down, which, however,
was traceable more to apprehension on the part of the manufacturers than
to any direct slackening of demand for goods. The strike of the railroad
shopmen and others resulted in a freight embargo, which, during its continuance, prevented shipments to and from the mills; substantially the
only unemployment was that caused by unwillingness to work, the only
idleness being due to strikes. Employment offices had more requests for
workers than could be supplied, even unskilled labor being decidedly short.
Except for the desertion of duty by about two-thirds of the police force
of Boston on September 9, with civil disturbances and apprehension as to
its reactionary effect on organized labor following in its wake, autumn was
ushered in with no appreciable change in the general labor situation which
was largely a state of mind, consisting chiefly in speculation on the part
of the workman as to whether he would benefit by further strikes for
higher pay, and apprehension and anxiety on the part of the employer lest
he do so. A more optimistic tone in the general business situation followed
adoption by the public authorities of a positive policy dealing with the
situation and returns to the Massachusetts Bureau of Statistics showed
a marked decrease in the number of strikes after October 1, while the
cotton manufacturers of Fall River and New Bedford the first week in
December adjusted the complaints of seventy thousand operatives on the
basis of a reasonable compromise.
Thus the year ended with general business conditions in the New England district reflecting unprecedented prosperity as defined in terms of
high wages and purchasing power, high prices, orders booked by manufacturers in some cases far into 1920, projected plans for expansion of
plants and equipment which in some cases are already taking the form of
actual building construction, and the absence of serious or widespread
dislocation of working relationship between employer and employee in
any of the great basic industries. Practically the only exception to this
general condition of business activity is in the field of dwelling-house construction, which has shown no broad recovery from the stagnation of the
war period, high prices of material and labor deterring individuals and
contractors from entering upon the construction of private houses or



10

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

apartments, though there has been a noticeable inauguration of new projects for large-scale construction of working men's homes by some of the
great industrial concerns. The expansion in banking and other activities
has caused also several new projects for construction in financial centers.
This is especially the case in Boston where several new bank and office
buildings are being planned, the demand for office space being greatly in
excess of the supply. This situation has contributed to very high rents
and considerable real-estate activity. The apprehension of mills and factories, which were running on full time and as a rule to capacity on December 1, that they might be gravely affected by a coal shortage due to
the strike in the bituminous fields and that as a consequence considerable
unemployment might result in the closing days of the year, happily did
not prove seriously embarrassing, partly because of ample reserve supplies
in most cases where coal is still used for power purposes and partly because
of foresight in installing fuel-oil plants.
Commercial failures1 have been less in number and less in volume of
liabilities than in the two previous years. The bank clearings in the larger
cities emphasize the increasing business activity of the year.2 The business through the port of Boston3 shows some change, although it must be
borne in mind that Boston is one of the terminals for the entire country.
BALANCE SHEET.

The comparative statement of the condition of the bank4 on December
31 for the years 1917, 1918 and 1919 reflects clearly the large increase
in its operations. The total resources amounting to 521 million dollars,
it will be noted, are over twice those of 1917, not including the increase in
rediscounts with other Federal Reserve Banks. The important changes
in this statement are referred to later in this report.
FINANCIAL RESULTS OF OPERATIONS.

While the heavy increase in bills discounted for member banks and the
high discount rates maintained during the year have brought increased
earnings5 to the bank, the increase on the other hand in service furnished
to member banks, more particularly in connection with currency transactions and the handling of checks and other items, has entailed heavy
increases in expense. Dividends at the rate of 6 per cent per annum were
paid on the stock holdings of member banks on June 30 and December 31,
and $5,362,934.40 was added to the surplus fund, making the total surplus
fund $8,359,034.406 or 59 per cent of the subscribed capital of the bank.
Under the amendment to the Federal Reserve Act of March 3, 1919,
Federal Reserve Banks may accumulate a surplus fund equal to their
1 See Schedule 53.
4 See Schedule 1.



2 See Schedule 50.
5 See Schedule 2.

3 See Schedule 52.
6 See Schedule 3.

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

11

subscribed capital, and thereafter 10 per cent of earnings. The success of
a Federal Reserve Bank should not be measured, however, by its earning
capacity, but by the service it renders the commercial and agricultural
interests of its district through its member banks.
DISCOUNT RATES.

As in the immediate war period the policy as to rates of discount during
the year 1919 has been dominated by the necessities of the Treasury
Department. The changes in rates were slight during the year,1 and not
sufficient to give the bank satisfactory control of the credit situation. The
preferential rate of 4 per cent on loans secured by and carrying the coupon
rate of the Fourth Liberty Loan Bonds was withdrawn February 15. The
rate in connection with loans secured by the bonds of the War Finance
Corporation went into effect automatically on April 12, at 5f per cent or 1
per cent above the commercial rate, when the first offering of its bonds was
made, but the rate was so high that it was used only to a very small extent.
There were no further changes in discount rates, not even in connection
with the flotation of the Fifth or Victory Liberty Loan, until November 4
when the preferential rates on maturities of 15 days or less were discontinued and rates on loans secured by Government obligations slightly
increased.
On December 12, the rates on all classes of paper, including trade acceptances and loans against United States Government long-term securities,
were raised to the commercial rate of 4 ^ per cent, the rates being still
continued on loans secured by certificates of indebtedness at the interest
rate which such securities bore — 43^ to 4 ^ per cent. The gradual
raising of rates on loans secured by long-term Government securities has
had some effect in keeping the volume of that class of loans out of the
banks,2 for in the latter months of the year when the discounts of the
Federal Reserve Bank customarily increase heavily, the increase was
almost entirely in commercial paper.
LOAN AND DISCOUNT OPERATIONS.

The year 1918 ended with the loan of this bank at nearly its maximum
point, a point which proved to be almost the low point of the year 1919.3
The high state of industrial activity during the war and the character of
the subscriptions to the Fourth Liberty Loan which had been placed under
a "borrow to buy" policy were the principal causes for the year opening
with loans high and with reserves low.
While in 1918 there had been an improvement in general conditions,
final payments on Liberty Loan Bonds and certificates of indebtedness
financing, together with the slow adjustment of payments on account of
1

See Schedule 48.




2 See Chart C.

3 See Schedule 4 and Charts A and B.

12

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

Government contracts, soon brought loans to a new high mark. The loan
continued at a high level until the middle of July. As payments began
to come in on the Victory Liberty Loan, the first of which on May 20 and
June 3 brought in 116 million dollars, it became evident that this loan had
been placed more largely in the hands of investors than previous loans and
had not been subscribed to so large an extent on borrowed money, as partial payment plans had been encouraged. Certificates of indebtedness
financing made it possible for banks to meet their payments without
recourse to this bank for any considerable amount of new loans. Even
the heavy tax payment of 140 million dollars in June was met without
additional borrowings from this bank as redemption of certificates of
indebtedness provided much of the necessary money.
Ordinarily, the demands of the mills for money with which to purchase
raw materials appear in the late summer or early fall. This year, price
uncertainty delayed these demands two or three months. The same held
true in the case of other seasonal demands. In August, as all indications
were that these demands would hold off and as reserves were at the high
point of the year, being 55.6 per cent on August 15, this bank became a
free buyer of acceptances.1 This policy was continued until early in
November when open market purchases of acceptances were only made
at rates above the discount rate, when open market rates on acceptances
were raised above the discount rate.
By November, a marked change had occurred in the demands made
upon member banks. The ever-increasing price level due largely to the
demands of labor; the financing of local taxes; the heavy purchases of raw
material; the final payments on subscriptions to Victory Notes; high stock
exchange call rates in New York, rates which attracted the balances the
country banks had been carrying on deposit with their Boston correspondents, all together greatly augmented the demands upon this bank and
made necessary heavy rediscounting with other Federal Reserve Banks.2
From then on to the end of the year, an increasing demand on the part
of the commercial borrowers of member banks caused a marked change
in the character of this bank's loan. Commercial paper discounted, which
had averaged under 10 million dollars up to November 1, rose to 63 million
dollars by the end of the year, an increase caused in part by the changes in
discount rates on November 4 and December 12, which tended to eliminate
the preferential rate that had led commercial borrowers to use United
States obligations rather than their unsecured notes when seeking accommodation.
Early in December, payment of 30 million dollars in this district on the
part of the United States Railroad Administration to the Boston & Maine
Railroad brought an easing of conditions which, however, lasted but a
i See Chart D.



2 See Schedule 7.

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

13

few days, the money being rapidly distributed to other districts. From
then on, commercial demands on member banks and Government financing necessitated further rediscounts with other Federal Reserve Banks.
The December 15 tax payment in this district was directly felt in the loan
of this bank which rose to 218 million dollars and was one of the factors
which made the year close with the loan at 289 million dollars including
rediscounts, or almost 85 million dollars higher than the previous year,
notwithstanding the fact that constant pressure had been brought to bear
on individual banks which were rediscounting undue amounts.
As in previous years, borrowings were made by banks largely on short
maturities,1 thus keeping the banks' investments in a satisfactory liquid
state.
TRADE ACCEPTANCES.

Although the larger city banks are still disinclined to encourage borrowing for commercial purposes through the use of trade acceptances, preferring the single name note, there has been a tendency on the part of note
brokers and merchants to increase the volume of this class of commercial
obligations.
While, in certain cases, the firms using trade acceptances have not been
those enjoying the highest credit, some merchants have found that they
could get increased credit from their banks through the use of paper of
this character and that brokers were inclined to favor it. During the past
year, a number of corporations have been organized in some cases under
the general corporation laws of the State, and in others under the State
banking laws, corporations whose principal operations are confined to the
financing of automobiles, both in connection with sales to dealers and to
individual purchasers. The relation of these corporations to member
banks, to the Federal Reserve system and the character of the obligations
which they handle as they pertain to the development of the general
acceptance business, should be given careful consideration.
For a short time the Federal Reserve Bank purchased in the open market trade acceptances endorsed by member banks.2 Foreign trade
acceptances have also made their appearance in this market to a marked
degree and have been carried by the large city banks in their portfolios.
These have been purchased at somewhat higher rates by this bank under
open market operation, but only when endorsed by member banks. Inasmuch as it has been deemed desirable to increase rates whenever possible and to bring about a closer uniformity of discount rates on all classes
of pappr, the preferential rate for trade acceptances was withdrawn on
December 12.
1 See Schedule 5.




2 gee Schedule 4.

14

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
BANKERS' ACCEPTANCES.

Increased demand for credits has produced a marked increase in the
volume of bankers' acceptances created in this Federal Reserve district,1
and every encouragement has been given to the brokerage houses and
discount companies to handle and distribute bankers' acceptances. This
has led to frequent carrying of acceptances by this bank on repurchase
agreements, only acceptances being taken, however, that this bank would
purchase and then at rates slightly above the open market. Several of
the large city banks have followed the same practice. There has been
evidenced, as a result of this encouragement, a wider distribution of these
acceptances among commercial and savings banks during the past year
than ever before. With the Treasury out of the market for short borrowings the banks in this district should be in a position to carry large portfolios of acceptances as secondary reserves.
During the entire year the Federal Reserve Bank has been a purchaser
of acceptances in the open market. Banks have preferred to sell their
acceptances to the Federal Reserve Bank even at rates considerably higher
than the current discount rates, rather than offer their holdings for rediscount. As referred to elsewhere during the months of August, September, October and early November, the Federal Reserve Bank was
a heavy purchaser of bankers' acceptances. The general policy of having
differential rates with reference to the character or maturity of acceptances has been maintained, but purchases of bills have been confined to
those either accepted by or endorsed by member banks. The outstanding
acceptance liability in this district of member banks on November 17
was 83 million dollars and private bankers and non-member state banks
brought the total up to over 109 million dollars. This bank has maintained the policy of requiring the endorsement of all acceptances rediscounted with or for other Federal Reserve Banks.
During the year a number of member banks have been given the special
privilege by the Federal Reserve Board of accepting up to 100 per cent of
their combined capital and surplus,2 while several banks" have entered
the acceptance field for the first time.3
A policy has finally been adopted whereby bankers' acceptances payable in Federal Reserve Bank cities become reserve funds to the holding
bank on the date of payment, settlement being consummated through the
gold settlement fund in Washington. This arrangement has greatly
aided the distribution of these bills among the various districts.
UNITED STATES SECURITIES.

The principal changes in the amount of United States securities held by
this bank have been in connection with Certificates of Indebtedness
i See Schedule 42 and Schedule 46 and Chart D.
3
See Schedule 44 and Schedule 45.



2 See Schedule 43.
4
See Schedule 1.

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

15

issued under the Pitman Act which provides for their use as security for
Federal Reserve Bank Notes which have been issued to take the place of
silver certificates. January 1, 1919, $666,000 of these were purchased to
replace a like amount of United States one year 3 per cent notes which
matured on that day and had been used as security for Federal Reserve
Bank Notes. In addition to these, $14,020,000 Certificates of Indebtedness were purchased to be used as security for additional Federal Reserve
Bank Notes.
Anticipating receipt of funds occasionally, the Treasury Department
has sold to the Federal Reserve Bank special Certificates of Indebtedness maturing in one or two days and carrying 2 per cent interest.
The funds so obtained have been used to meet its current obligations.
The largest amount of these certificates held at one time was 30 million
dollars on September 15 and the total amounted to 36 million dollars.
CREDIT DEPARTMENT AND BANK EXAMINATIONS.

The expansion of the general credit situation has called for a more
careful scrutinizing of credits than ever before. Careful investigations
have been made both of notes offered for discount by member banks and
of notes and securities carried in their loans. In the past, credit analysis
has been conducted in connection with the examining department, but
this work has now increased to such a point that after the first of the
year it is planned to organize a separate credit department which will
be under the immediate supervision of Frank S. Hughes, who, for many
years, has been associated with R. G. Dun & Company. The scope of
the department will be considerably extended as it is proposed to follow
more closely the different lines of commercial activity in New England
in order that the Federal Reserve Bank may be kept in closer touch with
the credit situation and the needs of the industrial, commercial and
agricultural communities in this district.
The work of the examining department has been largely increased during the past year in connection with both state member and national
banks. It has been found desirable in the case of state banks, both when
applying for admission to the Federal Reserve System and in following
their condition after membership, to pursue the policy of making independent examinations. This policy has been adopted not through any
lack of co-operation on the part of the various state banking departments
or through lack of confidence in their examinations but rather in order
to bring about a uniformity of detail in the information obtained and
greater regularity of making examinations.
During the past year every state member bank has been examined
either independently or in conjunction with state banking departments
in which latter case independent reports have been made by the Federal
Reserve examiner.



16

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

It has been found necessary to keep in closer touch with the condition
of all national banks and to work in even closer co-operation with the Chief
National Bank Examiner of this district than in previous years, and
satisfactory results have been obtained thereby.
RESERVE POSITION.

Although the reserve position of the bank1 would appear to show
less fluctuation than in 1918, this has been brought about only through
the adjustment of reserves by rediscounts with other Federal Reserve
Banks. The bank's reserve position has been affected quite as much by
transfers of funds by the Treasury Department out of the district2 as
by actual commercial demand. The transfers made from the proceeds
of the sale of government securities were mostly to the Federal Reserve
Bank of New York. The marked increase in reserves during July and
August was partly due to transfer of gold held by the Federal Reserve
Bank of New York for the account of the Argentine Government and the
seasonal lessening of the local money market requirements. A heavy decline in the reserve position appeared early in November, due to heavy
demand on the local banks for commercial purposes and incidental to the
payment of local taxes. Municipal obligations created in this district in
anticipation of these tax payments having been largely purchased outside of the district, presumably for investment in temporary foreign
balances in New York, becoming due, withdrew quite an amount of the tax
money from the district. The adjusted reserve percentage, eliminating
gold received from rediscounts with other Federal Reserve Banks, has
been unusually low except during the months of July, August and September, the year ending with an adjusted reserve of 27 per cent and on
one occasion falling as low as 23 per cent.
BANK OF ENGLAND STERLING ACCOUNT.

On April 2, 1919, final payment was received by this bank on account
of its share of the gold which had been deposited with the Bank of England on June 27, 1917. The original amount apportioned to this bank
was $3,675,000. During the summer of 1919, the United States Grain
Corporation received payment in gold for food sold in Germany. The
gold was forwarded to the Bank of England to be held for the account of
the Federal Reserve Bank of New York. As this was received by the
Bank of England and counted, the various Federal Reserve Banks assumed
the proportionate share of the total. The first allotment of this gold was
made on September 17, 1919, and the final one brought the total allotment for this bank to $12,638,000. However, before all adjustments had
been made, the Federal Reserve Bank of New York commenced to sell
i See Chart E and Schedule 6.



2 See Schedule 8.

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

17

part of this gold. The first sale was on October 2, 1919, and sales continued during the remainder of the year; as the year closes, this account
stands at 9 million dollars.
RELATIONS WITH COMMERCIAL BANKS.

The Treasury financing and commercial expansion during the year
have necessitated the closest co-operation between the officials of the
Federal Reserve Bank and those of the commercial banks of the district.
In connection with the Treasury financing it was found necessary, in order
to meet the quota of Treasury certificates placed on this district at each
issue, to allot a percentage to each commercial bank in the district, that
percentage being based upon each bank's total resources. In the case of
member banks, this brought about a situation calling for constant pressure and tact, for while urging these banks on the one hand to expand
through the purchase of these government securities, the officials of the
Federal Reserve Bank had to constantly bring pressure on the same banks
to reduce their rediscounts at this bank.
With the demands of their commercial customers constantly increasing and the tempting rates on commercial and call money,1 the greatest
credit is due to the banks in this district, most of whom not only took
their full quota of Treasury certificates without complaint, but against
their own interest, so far as possible profit was concerned, kept their
commitments down and met the suggestions of this bank's officials regarding their credit lines. This is especially so in the case of the large
clearing house banks in Boston, between whom and the Federal Reserve
Bank there has been the very closest co-operation.
The Governor and Chairman of the Board of Directors of the Federal
Reserve Bank have had meetings when conditions seemed to make it
necessary with the Executive Committee of the Boston Clearing House,
and discussed matters pertaining to the general credit situation in the
district, which meetings have been of the greatest value in solving the
problems that have arisen from time to time.
Seven new national banks opened for business during the year, all but
one being located outside of Boston. Four national banks went into
liquidation, all but one of these, which consolidated with another member
bank, being converted into state banks.2
Five trust companies were admitted during the year, all from Massachusetts, bringing the total number of trust companies to thirty-six,3 and
the total member banks to 432.
While there are apparently a number of trust companies in the district
that are not members of the Federal Reserve system,4 a large percentage
i See Schedule 40, Schedule 41 and Schedule 49.
3 See Schedule 36.




2 See Schedule 35.
4 See Schedule 37.

18

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

do a character of business that probably does not warrant their joining
the Federal Reserve system, both from the position of the Federal Reserve
Bank and the state institutions.
Of the total liabilities of non-member banks, over 135 millions, or 30 per
cent, are composed of savings deposits.
Under the banking laws of most of the New England states, the investments of savings departments of trust companies not only must be segregated but are chiefly limited to investments of a character that are not
eligible for rediscount purposes in the Federal Reserve Bank, — these
investments being largely in real estate mortgages and securities.
State laws also require against savings deposits either no reserves or
reserves considerably lower than called for by the Federal Reserve Act.
Although non-member state banks in many cases no doubt indirectly
used the resources of the Reserve Bank for accommodation, i.e., through
their Boston correspondents, the effect of such borrowings on the general
credit situation has been unimportant, these loans having largely been
made at rates higher than those maintained by the Federal Reserve
Bank, — borrowings for commercial purposes being mostly at 53^ per
cent and 6 per cent.
Despite the extravagance shown by the wage-earning class during the
past year, the deposits of mutual savings banks and savings departments
of commercial banks in this district have shown a heavy increase. While
it is difficult to give the exact figures of this increase there is no doubt
but what it will exceed 200 million dollars.
A large number of national banks have been granted special authority
by the Federal Reserve Board to exercise fiduciary powers.1
DEPOSITS.

The reserve accounts of member banks (collected funds) show an increase of some 16 million dollars2 over the previous year, having expanded
from 101 million dollars on December 31, 1918, to 117 million dollars on
the same date in 1919. This reflects the increase in deposits in member
banks and also the reserves of trust companies admitted during the year.
There has been greater penalizing of banks for deficient reserves than
during the previous year, probably due to the policy inaugurated on July 1
of requiring member banks to make reports of average deposit liabilities
for weekly periods if located in Boston and for semi-monthly periods if
located elsewhere, instead of monthly as heretofore. On the other hand,
the policy of allowing all banks outside of Boston to remit for checks sent
them for collection instead of charging such collections to their accounts
has enabled the banks to handle their reserve accounts more satisfactorily.
The account of the Treasurer of the United States3 has shown great fluctuations during the year. At times when funds have been drawn in from
i See Schedule 47.



2 See Chart J and Schedule 39.

3 See Chart H.

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

19

depository banks,1 the Treasury balances carried with this bank have
been very large, but transfers to other districts and the payment of maturing Treasury certificates have not only at times drawn this account very
low, but have necessitated the bank purchasing Treasury certificates for
a day or two to cover overdrafts.
CURRENCY.

During January, currency receipts were unusually heavy, probably due
to the large expansion which occurred just previous to the Christmas holiday season. The question of properly sorting and counting this currency
presented a difficult problem, as at that time the bank employed a small
number of money counters and its quarters were inadequate. As rapidly
as possible, this force was augmented and a new system of counting put
into operation. A steadily increasing number of banks have taken advantage of the plan put in operation in October, 1918, whereby the Federal
Reserve Bank absorbs the charges for shipping incoming and outgoing
currency. During the year, over 500 million dollars of currency was
received and 400 million dollars paid out. The demands of December,
1919, were even heavier than those of the same month in 1918, and it is expected that much of this will speedily be returned from general circulation.
While, during the early months of the year, the bank accumulated a supply
of about 500 thousand dollars in silver coin and 75 thousand dollars in
nickels and dimes, after the December demand had run its course there
was less than 25 thousand dollars of this coin in the bank's vaults, this
notwithstanding the fact that heavy purchases were made all during
November and December.2
FEDERAL RESERVE NOTES.

Every year has shown a steadily increasing issue of Federal Reserve
Notes by this bank,3 for unlike the situation that appears in other Federal
Reserve districts where agricultural seasonal demands expand and contract the note issues, with the exception of fluctuations due to the Christmas retail trade, the demand has been constant and increasing. In the
case of loans, the bank has been able to restrict, although perhaps very
slightly, the demands from particular banks for rediscounts, but in the
case of Federal Reserve Notes, so far as the volume is concerned, it has
had no control. It would, therefore, appear that the volume of Federal
Reserve Notes follows the price level and is a reflection of credits granted.
The higher wage scale with the great activity in industry, and the extravagance of the wage-earner, calling for increased circulating medium, would
appear to be the main factor to which the large increase in Federal Reserve
Notes should be attributed. The demand for new currency has also been
a factor but less important than in previous years. The interdistrict
i See Chart I.
2 See Schedule 9.
3 See Schedule 11, Schedule 12 and Chart G.




20

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

movement of Federal Reserve Notes1 has been considerably heavier than
in 1918, especially with New York, Philadelphia and Chicago, and should
be given careful study by the Federal Reserve Board. The handling,
counting and sorting of these notes together with other currency has
called for a large increase in the force and accommodations of the money
department — from 71 to 104. It has also been found necessary to increase the supply of unissued Federal Reserve Notes.2
FEDERAL RESERVE BANK NOTES.

The further withdrawal of silver for shipment to foreign countries has
resulted in the retirement of large amounts of silver certificates by the
Treasury Department. This has called for other circulating medium to
replace that retired, especially one and two dollar notes. To fill this demand, the Federal Reserve Bank has increased its issue of Federal Reserve
Bank Notes to 21 million dollars.3 All these are secured by special 2 per
cent Certificates of Indebtedness issued under the Pitman Act.
COLLECTION OF CHECKS.

From the inauguration of the collection system by the Federal Reserve
Bank, all banks in New England have remitted for their checks at par.
In the case of member banks, it had been customary to enter a deferred
charge against their reserve account, while non-member banks had the
privilege of remitting for their checks after receipt. On December 1st,
all banks were placed on a remittance basis, a plan which greatly aided
member banks in maintaining their reserves at the required amounts.
Boston banks are now permitted to deposit in one package all checks
on New England banks, instead of being required to prepare a package
of the checks drawn on each bank. As a result, the number of items handled
per day has increased to about 100,0004 and the force handling these
items has increased from 109 to 173.
INTERNAL ORGANIZATION.

There have been but few changes in the officers' staff during the past
year. However, the increase in departmental work has called for a large
addition to our clerical force, — an increase from 508 employees on December 31, 1918, to 629 on December 31, 1919, the increase for the most
part being in the money and transit departments, and being about evenly
divided between men and women employees.5
Chester C. Bullen, who had been appointed Deputy Governor and
Cashier, resigned as Cashier on June 19,1919, and William Willett, formerly
i See Schedule 13.
2 See Schedule 14.
3 See Schedule 10.
4
8
See Schedule 15.
See Schedule 54.




ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

21

Assistant Cashier, was appointed Cashier. On December 4,, 1919, Ellis
G. Hult, head of the transit department, was appointed Assistant Cashier.
Russell B. Spear resigned on July 1, 1919, as Assistant Federal Reserve Agent, and the appointment of Charles F. Gettemy, formerly Director of the Bureau of Statistics of Massachusetts, was approved by the
Federal Reserve Board as Assistant Federal Reserve Agent.
Thomas W. Farnam, Class A Director, representing banks in Group 2,
entered the service of the American Red Cross in September, 1918, and
was at once sent over b.y that organization to investigate the situation in
Serbia. He was made Commissioner of Serbia, and as his residence in
that country was rather indefinite he resigned as a Director of the Bank.
A special election was held tofillthe vacancy caused thereby, and Frederick
M. Drew, Vice-President of the Ansonia National Bank, of Ansonia, Connecticut, was elected by banks in Group 2 for the term expiring December
31, 1919.
To fill the vacancy caused by the expiration on December 31, 1919,
of the terms of Frederick M. Drew and Edmund R. Morse, Class A and
Class B Directors, representing banks in Group 2, an election was held
from November 11 to December 3, 1919. Of the 159 banks in this group
entitled to vote, G9, or 42 per cent, voted. The sole nominees were Frederick
S. Chamberlain, Cashier of the New Britain National Bank of New Britain,
Connecticut, and Edmund R. Morse, of Proctor, Vermont, and all votes
were cast in favor of the two candidates, who were elected each for the
term of three years ending December 31, 1922.
Jesse H. Metcalf, whose term expired December 31, 1919, was reappointed by the Federal Reserve Board for the term of three years ending
December 31, 1922.
On December 20, 1919, the Federal Reserve Board redesignated Frederic H. Curtiss as Chairman of the Board of Directors and Federal Reserve Agent for the year 1920.
At the January, 1919, meeting, the directors reappointed Daniel G.
Wing, President of the First National Bank of Boston, to represent this
district as a member of the Federal Advisory Council.
BANKING QUARTERS.

The problem of housing the activities of the bank under one roof, and
adequately safeguarding the cash and securities which it is called upon to
handle, has been exceedingly difficult. The premises at 95 Milk Street,
purchased in June, 1918, containing some 13,000 square feet, were subsequently found to be inadequate for the bank's purposes and as suitable
adjoining property could not be obtained, the directors decided to sell
this property and to purchase elsewhere. It was accordingly disposed of
and at a substantial net profit over all carrying charges, a tract of some



22

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

40,500 square feet being then purchased for $1,400,000, which has a frontage of 181 feet on Pearl Street, 267 feet on Franklin Street and 128 feet on
Oliver Street. This location is in close enough proximity to the banking
centre of Boston and its dimensions are such as to make its use entirely
adequate for the bank's purposes. The same building committee, consisting of Philip R. Allen, Frederic H. Curtiss, Charles A. Morss, E. R.
Morss and Charles G. Washburn, has been continued, with Charles A.
Morss as its Chairman. R. Clipston Sturgis, upon the recommendation
of the committee, was employed as the architect, and plans have now been
perfected for the new building.
It is expected that soon after the first of the year the construction
of this new bank building will begin. The bank building will set back
several feet from Pearl Street, on which it will front, and will have many
features different from those of other bank buildings. The general public,
except for very restricted purposes, has no occasion to use the Federal
Reserve Bank, hence its building need provide entrance for only a limited
number of persons, comprising chiefly officers of member banks or their
special representatives who may call for personal conferences with the
officers of the Federal Reserve Bank or for the purpose of depositing
securities. The small number of people who enter the building daily
and the value of the securities and currency in the bank's custody accordingly permit making provision for a single main entrance on Pearl Street
and a side entrance for employees, with two entrances on Oliver Street
to a "security court" for delivering securities and currency in bulk. These
entrances are to be thoroughly protected by heavy doors calculated to
resist attack, and all the window openings on the ground floor are to be
quite narrow and protected with bar grills on the outside and steel shutters
on the inside. In this way the entire ground floor can be readily closed
and made proof against mob attack. Various methods for employing defensive measures against mobs will be provided.
Just inside the Pearl Street entrance, on the ground floor, is to be the
general banking room where callers may have ready access to the bond
and certain other departments. Liberty Loan transactions, receipt of
city checks, etc., will be taken care of in this room. The members' lobby,
where representatives of member banks may meet the senior or junior
officers, is to be on the first floor directly over the entrance, reached by
a short flight of stairs, and will be a large stone-walled room at the bottom
of a large interior court, lighted from overhead. This lobby will be a convenient meeting place for the officers of member banks and at the same time
be a central source of light and air to the first-story rooms; adjacent to
it will be several small rooms for conference purposes.
On one side of the main banking lobby, where the junior officers are
to be located, will be the offices of the Governor, the Federal Reserve
Agent, and the senior officers. The offices of the Governor and the Federal



ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

23

Reserve Agent will get their light and air from the member's lobby and will
be inside rooms, removed from the proximity of the city street. The collateral and discount departments will be located on the other side of this
lobby where they will be readily accessible to the special representatives
of the member banks.
The vaults will be the heart of the building and are to be arranged in
three tiers, giving points of contact with three different floors so that the
various departments requiring separate vault space may have their own
independent contact and control of vaults. These will be thoroughly
protected against all forms of attack or access by unauthorized persons
and will be planned to be not only secure when closed but adaptable at all
times to the quick return of material and speedy closing as well as for the
most economical handling of the bank's business from day to day.
The remaining floors will be composed principally of uninterrupted
open clerical space, thoroughly lighted and made as noiseless as possible
by the character of the material used, especial attention being given to the
elimination of the vibration in those departments which call for considerable equipment.
To the left of the principal entrance on Pearl Street will be the service
quarters, almost completely separated from the main building, and accommodating the locker and toilet rooms of the employees, as well as the
custodian and supply departments. The principal elevators are located
in this part of the building which will have an added story extending over
a portion of the main banking building, providing quarters for the welfare
work of the bank, including lunch and rest rooms.
The exterior of the building will be of granite on the ground floor and
limestone above, and will suggest in its design, as it does in its general
scheme of plan, the great houses of Florence, Genoa and other North
Italian cities.
FEDERAL RESERVE SOCIETY.

Early in 1919, the clerks of the Federal Reserve Bank completed the
formation of an organization under the name of the Federal Reserve
Society of Boston. Its aims are the promotion of loyalty to the Federal
Reserve Bank, the promotion of sociability and recreation, the promotion
of co-operation among the employees, and the extension of financial aid
and advice when necessary. With full co-operation on the part of the
officers and directors of this bank, the society is functioning most satisfactorily in fulfilling its aims.
It has acted as a distributor of surplus army supplies, purchasing over
$3,000 worth of these, and selling them at cost. Both at Thanksgiving
and Christmas several thousand pounds of turkey were purchased and
distributed at wholesale prices to the members of the society. In addition,
it is publishing a monthly magazine containing articles of general interest



24

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

about the bank. Several successful social events have been held during
the year and financial aid has been rendered, where unusual circumstances
have warranted. The Society numbers 560 members.
CERTIFICATES OF INDEBTEDNESS.

United States Treasury financing, while decreasing in volume as the
year 1919 drew to a close, was heavier for the first six months of the year
than in any previous similar period. The Victory Liberty Loan being the
only long term loan placed during the year, the Treasury Department was
obliged to finance itself largely through the sale of Certificates of Indebtedness issued in anticipation of taxes, and other short-time Certificates of
Indebtedness. These certificates were issued at frequent intervals, occasionally more than one issue being placed on sale at the same time.1
The Certificates of Indebtedness Committee, appointed in 1918, of
which Storer E. Ware was Chairman, continued to serve but asked to be
relieved after the Victory Loan had been placed. In the summer, after
the announcement by the Secretary of the Treasury of his program for
the balance of the calendar year, the following committee was formed to
handle future offerings of Certificates of Indebtedness: —
C. C. Bullen, Chairman, Deputy Governor, Federal Reserve Bank,
Boston.
I. K. Stetson, President, First National Bank, Bangor, Maine.
Wm. W. Thomas, President, Canal National Bank, Portland, Maine.
Arthur M. Heard, President, Amoskeag National Bank, Manchester, N.H.
E. A. Davis, Vice-President, National White River Bank, Bethel, Vermont.
J. H. Gifford, Vice-President, Merchants National Bank, Salem, Mass.
Irving W. Cook, President, First National Bank, New Bedford, Mass.
F. A. Drury, President, Merchants National Bank, Worcester, Mass.
H. A. Woodward, President, Chapin National Bank, Springfield, Mass.
Thos. H. West, Jr., President, R. I. Hospital Trust Co., Providence, R. I.
Wm. B. Bassett, Vice-President, Phoenix National Bank, Hartford, Conn.
W. P. Curtiss, President, Union & New Haven Trust Co., New Haven,
Conn.
Although this committee did splendid work, it was with difficulty,
owing to the general conditions of the investment and money markets,
that quotas were even approached.2 General commercial demands on the
banks were such that subscriptions had to be obtained through personal
solicitation. Most of the subscribing banks paid for these certificates
by credit as in previous years. These deposits were gradually withdrawn
to meet government requirements.3
1 See Schedule 20
2 See Schedule 21 and Schedule 22.
3 See Schedule 20 and Schedule 33.



ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

25

These government deposits, although no doubt having an important
influence in the volume of certificate sales, have been, on the other hand,
a rather unsettling factor in the general credit situation. As banks distributed these certificates to the public, they would use the money thereby
obtained as a basis for granting additional credits and when these government deposits were later withdrawn would have recourse to the Federal
Reserve Bank or to their own correspondents for money with which to
meet these payments.
In connection with the different offerings of Treasury Certificates of
Indebtedness, the Federal Reserve Bank has during the year acted as a
medium to assist in the distribution of certificates between banks and has
placed and filled orders for them. At the close of the year, $369,000
certificates were held for resale.
VICTORY LOAN.

The announcement made early in the year by the Secretary of the
Treasury that there would be but one more popular offering of bonds
enabled the Liberty Loan Committee to hold intact its volunteer organization that had handled so successfully the four previous bond issues, until
after the flotation of the Fifth or Victory Liberty Loan opened for subscription by the Secretary of the Treasury on April 22. * As in 1918, the
Governor of the bank, Charles A. Morss, was Chairman of the organization, the active management being in the hands of N. Penrose Hallowell
of Lee, Higginson & Company, Executive Chairman; J. R. Macomber,
of Harris, Forbes & Company, Assistant Executive Chairman; James
Dean of Wm. A. Read & Company, Chairman of Distributing Committee;
and Mrs. F. L. Higginson, Chairman of the Women's Committee.
The quota allotted to New England was 375 million dollars and the
subscriptions received were $427,223,750,2 or 113 per cent, representing
subscriptions received from 817,8223 individual subscribers, as reported
by banks. The amount finally allotted to the district by the Treasury
Department was $371,910,150. This Victory Loan, owing to the improvement in the organization of the Liberty Loan Committee and to the fact
that the Treasury Department had announced that it would be a closed
issue and that it would be the last popular offering, was distributed as
well as, if not better than, any previous loan.4 Banks were not encouraged
to solicit subscriptions on the subscribe and borrow policy, as in the Fourth
Loan and furthermore subscribers were encouraged to subscribe on the
Government Installment Plan.5 With the subscription to the Victory
Notes the total amount of long-term government securities subscribed for
in the New England district amounted to over 2 billion dollars.6 Previous to May 20, when the initial payment of 10 per cent was due on subscriptions, about 35 million dollars of bonds were disposed of in advance
i See Schedule 23.
4 See Schedule 26.



2 See Schedule 24.
5 See Schedule 28.

3 See Schedule 25.
6 See Schedule 24.

26

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

of the issue for cash. In anticipation of the Victory Loan, Treasury Certificates of Indebtedness amounting to $475,792,500* had been sold in the
district which could be used in payment for Victory Bonds, but only a
negligible amount of these were so used, banks preferring to hold the
certificates until they matured. The percentage of subscription to the
Victory Loan in the several New England states was about equal to that
of previous loans. The Victory Notes were issued in two series — 4.% per
cent and 3% per cent, the latter being tax exempt. The bank delivered
$317,644,500 of 4% per cent notes and $54,254,650 of the 3% per cent,
notes.
WAR SAVINGS DIVISION.

On November 15, 1918, the Secretary of the Treasury definitely placed
the distribution of all Government Securities under the Governor of each
Federal Reserve Bank. This included the Liberty Loan issues, Treasury
Certificates and War Savings Certificates. Until that date, the War
Savings Organization had been directly conducted by the Treasury Department in Washington. As the various state committees had largely
resigned, this necessitated the building up of almost an entirely new organization in this district.
In January, 1919, Mrs. F. L. Higginson, the Chairman of the Women's
Liberty Loan Committee of New England, was appointed director of the
Savings Division in this district and Mrs. C. E. Heard was selected as
assistant director. An executive committee was formed consisting of
Charles A. Morss, Governor of the Federal Reserve Bank, Frederic H.
Curtiss, Chairman of the Federal Reserve Bank, N. Penrose Hallowell of
Lee, Higginson & Company, John R. Macomber of Harris, Forbes & Company, James Dean of Wm. A. Read & Company, and Graydon Stetson.
Directors were appointed for each state who had complete charge of
both the educational campaign and sales of stamps.
Owing to the general reaction after the armistice, and to the Victory
Loan, sales of stamps decreased rapidly until August, since which time the
increase has been steady.2
Educational work is being carried on not only to encourage savings,
but to educate the public to avoid false investments and loan sharks and
to encourage all to hold and invest in Government securities.
CUSTODY DEPARTMENT.

This department has become of increasing importance during the year,
in connection with the collateral against notes discounted with the bank
and collateral pledged against government deposits, and these added
activities which have been placed on this department have called for an
increase in the clerical force.3 Member banks have also become accustomed
to leave securities in this department for safe-keeping. The character of
1 See Schedule 20.



2

See Schedule 27.

3 See Schedule 16 and Schedule 54.

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

27

the collateral pledged during the year has changed to quite an extent,
commercial paper increasing in volume and securities other than those of
the United States Government showing a material decrease.1 The cutting
of coupons on collateral held in this department has become an important
factor in its activities.2 The handling of the coupons and bonds of the
Government in the Bond Department has also been increasingly heavy,
that department having redeemed no less than 7 million coupons amounting to 44 million dollars during the year. This same department during
1919 handled 961,000 odd bonds of the Fourth Loan and 1 million bonds
of the Victory Loan and 157,900 Treasury Certificates.3 That these securities have been handled without loss demonstrates to some extent the
efficiency of the Bond Department. The privilege of converting Liberty
Loan Bonds carrying 4 per cent interest into bonds carrying 434 per cent
interest was reopened on March 9, 1919, and many holders have taken
advantage of this opportunity.4
WAR FINANCE CORPORATION.

On April 1, 1919, this bank opened subscriptions for the 250 million
dollar issue of bonds offered by the War Finance Corporation. These
were one year bonds carrying 5 ^ per cent interest. Total subscriptions
reached 27 million dollars5 in this district and were placed not only with
banks but in some cases directly with brokers who received a commission
for reselling the securities.
FOREIGN EXCHANGE.

Under the Presidential Proclamation of January 26, 1918, this bank
was required to license all dealers in foreign exchange and to obtain reports of those who were doing an active business. Before the Proclamation regulating foreign exchange was rescinded, on June 26, 1919, this
bank had issued licenses to over 1600 dealers. In addition, permits to
export coin and currency were issued to a number of concerns and banks.
Blanket permits also were issued covering the shipment of Canadian
Currency to Canada and reports from holders of these permits indicated
that a considerable amount of money was returned to that country.
In order to provide means for payment of imports from India, arrangements were made whereby this bank was enabled to sell exchange on that
country through the Federal Reserve Bank of New York. Lesser amounts
of exchange on Argentina and Peru were also provided through the same
channel. On June 26, 1919, all regulations concerning foreign exchange
with only minor exceptions were repealed and therefore this department
of the bank ceased operation on July 1, after about a year and a half of
existence.
i See Schedule 17.
2 See Schedule 18.
3 See Schedule 30, Schedule 31 and Schedule 32.
4
See Schedule 29.
5 See Schedule 34.




28

ANNUAL REPORT OF FEDERAL RESEKVE BANK OF BOSTON.
CONCLUSION.

The past year, both industrially and financially, has been fairly satisfactory when all things are taken into consideration. Our industries have
been able to readjust their business from a war to a peace basis, without
undue distress. The large overseas forces have been brought back and a
goodly portion of our army and navy have been demobilized and become
absorbed by the business of the country without undue disturbance.
While there has been unrest, extravagance and radicalism in the community, there has been but little more than might have been expected after
the excitement, forbearance and strain of the long years of war. New
England has had its full share of these troubles, but it is confidently hoped
that the turn has come and that from now on, while perhaps slowly, conditions will improve.
The Treasury financing since the successful flotation of the Victory
Loan has been of diminishing volume, and as the year ends it is intimated
that hereafter any further necessary financing on the part of the Treasury
Department will be on such terms as will enable Federal Reserve Banks
to establish a policy with respect to all discount rates which should give
them a better control over the credit situation as it pertains to the agricultural, commercial and industrial needs of their districts. The foreign
exchanges, while still unsatisfactory, will, no doubt, be helped by the relief
which the Edge Bill, recently passed by Congress, can afford.
The responsibility of the Federal Reserve Banks will now be very
great. The credit situation must be brought back to nearer normal,
but to do this without causing undue distress will require the most careful
judgment and foresight on the part of the officials of those banks, and the
closest co-operation with the Federal Reserve Board. As this report shows,
the demand for credit by member banks on the Federal Reserve Bank of
Boston has been insistent and increasing. The year ends with the total
earning assets — investments — at not only the highest point of the year,
but, including bills rediscounted with other Federal Reserve Banks, of
over 300 million dollars against a high point of about 200 million dollars
of the previous year, and with only a slight increase in the gold reserve.
Of these 300 million dollars of rediscounts and investments over 124
million dollars represent loans against Government securities, and yet,
notwithstanding this condition, owing to the influence of Government
financing, the discount rates of this bank at present are 4 ^ per cent for
all classes and maturities of bills, while the outside rates for commercial
paper rule at about 6 per cent.
Every reasonable effort should be made to contract this extended condition and to increase reserve percentages from now on, but this can only
be done by steadily raising the discount rates on all classes of paper until
the desired result has been attained. While the increased rates may be



ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

29

expected to bring about some liquidations of loans in Government securities, they should also enforce increased savings and a wider distribution of the securities themselves, which in turn would have a healthy effect
in reducing not only the general price level, but in discouraging the prevailing wave of extravagance.
If the Federal Reserve Banks and the Reserve System as a whole are to
be relied upon to meet any unusual and heavy strain calling for expansion
of credit they must first show their ability to contract credit or at least to
control credits of doubtful necessity. If subscription to securities offered
by the Treasury Department could be kept open for a longer period and
if they were to bear rates that would be more attractive to the investor,
thus keeping them out of bank loans, then the policy pursued in the past
of leaving the proceeds of subscriptions temporarily on deposit with banks,
might be discontinued, and the proceeds of such subscriptions might instead be left on deposit with Federal Reserve Banks to relieve a temporary
shortage of funds caused by the withdrawal of this money from the open
market. It is believed that such a policy would have a salutary effect
upon the general credit situation.
With co-operation between the Reserve Bank, the local bankers and
business men, all working together to gradually restore more normal conditions of business, it is believed that the desired results may be obtained
without undue hardship to legitimate business. It will, however, take
patience, courage, and complete understanding between these elements
if this is to be accomplished.




30

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
SCHEDULE 1. — Comparative balance sheet.
Dec. 31, 1919.

Dec. 31, 1918.

Dec. 31, 1917.

RESOURCES.

Earning assets:
Bills discounted secured by United States war
Other bills discounted (commercial)
Acceptances purchased in open market
United States bonds
United States short term obligations
Total
Reserve cash:
Gold (coin and certificates)
Gold settlement fund
'
Bank of England sterling gold account
Other lawful money
Total
Reserve against Federal Reserve notes:
• Gold with Federal Reserve agent
Gold redemption fund
Other resources:
Interest accrued on United States securities. . .
Due from Liberty Loan subscriptions
Expense, Liberty loan, etc. (recoverable) . . . .
Items in process of collection l
Exchanges for clearing house and cash items .
Federal Reserve notes and other cash on hand
Due from Government depositaries
Redemption fund Federal Reserve bank notes
Real Estate for bank quarters

Total

229,032,000

$120,515,000
13,060,000
15,084,000
538,000
7,416,000
156,613,000

$43,898,000
21,985,000 :
9,037,000
610,000 !
2,194,000
77,724,000

7,959,000
34,351,000
9,586,000
4,037,000

3,317,000
37,293,000
408,000
2,288,000

55,933,000

43,306,000

18,691,000
16,977,000 '
3,675,000
3,074,000
42,017,000

73,511,000
26,342,000

59,733,000
7,812,000

40,897,000
2,000,000

222,000

33,000
567,000
573,000
52,911,000
10,548,000
13,810,000
30,015,000
321,000
800,000

22,000
118,000
144,000
15,007,000
3,217,000
4,661,000
66,489,000

377,042,000

253,196,000

$124 529,000
63,510,000
18,649,000
539,000
21,805,000

204,000
73,236,000
4,357,000
7,901,000
48,373,000
1,072,000
1,103,000
521,286,000

Dec. 31, 1919.

Dec. 31, 1918.

Dec. 31, 1917.

LIABILITIES.

Capital fund:
Surplus
Deposits:
Due to member banks, reserve account
....
Due to Federal Reserve Banks, collected
l

Due to banks, uncollected funds
Due to Treasurer of the United States,
general account
Due to Treasurer of the United States, special
account
Cashier's checks, outstanding, etc
Foreign Government credits
Other liabilities:
Federal Reserve notes outstanding
Federal Reserve bank notes outstanding.
Unearned discount and interest
Reserve for depreciation and interest
Reserve for franchise tax and other taxes
Mortgage on real estate

$7,107,000
8,359,000

$6,692,000
1,536,000

$5,858,000
75,000

117,294,000

101,806,000

82,842,000

21,725,000
45,469,000

17,467,000
29,269,000

3,870,000
13,781,000

1

other

10,499,000

2,419,000

30,015,000
411,000

66,490,000
20,000

244,003,000
20,912,000
807,000
93,000
88,000

168,986,000
6,889,000
468,000
93,000
1,461,000
750,000
377,042,000

77,297,000

521,286,000

Total
Liability for rediscounts with
Reserve banks

1,123,000
48,373,000
566,000
5,277,000

253,196,000

60,121,000

48,962,000

44,477,000

75,000

Federal

Offsetting items to be cleared through gold-settlement fund.




469,000

SCHEDULE 2.— Expense and income.
1919

Expense.
Paid in lieu of dividends on

I

Rent
Cost of Federal Reserve notes . .
Assessment for expenses of
Federal Reserve Board
Real Estate Expenses
Tax on Federal Reserve bank
Furniture and equipment . . . .
Difference account
Repairs and alterations
Charged off or reserved
To balance

Total
1

:

Included with dividends.

2

1917

1918

$274,923.98
7,351.39
45,62s. 30
518,894 59
552.47
317,691.47

$271.89
146,474.73
6,607.75
26,681.56
274,361 49
245.71
167,828.00

$3,926.85
51,288.75
5,781.10
15,246.49
93,193.65
69.10
102,621.39

45,619.05

29,554.02
27,811.14

21,226.35

45,422.10
21,530.64
1,499.03
14,645.52
18,776.67
316,039.55
3 91,627.33
5,777,381.06
7,497,583.15

24,173.97
4,557.70
61,894.92
3,554.20
101,529.38
2
200,000.00
3,304,908.25
4,380,454.71

1918

1919

Income.

1917

8,973.83
814.83
10,450.00
1,462.24
8,255.87

3

Real estate charged off.

886,294.79
1,209,605.24

$11,596.56
Bills

discounted

for

member

Acceptances purchased
State, city, and town notes
..
Interest on United States securi-

$6,003,252 40 $3,068,027 38
931,700 RS
1,077,690 00
369,456 53

Profit on United States securities
Penalties for deficient reserves. . .

Total

107,719
41,821
18,425
212,760

Note Tax and Federal

03
34
71
27

94,784.86
11,101.60
6,105.39
7,299.67

4,380,454 71

27,836 12
19,347 20

7,497,583 15

Includes reserve for Federal Reserve Bank

571,117.13
502,397.30
5,202 73

1,209,605.24

Reserve Board.

SCHEDULE 8.— Distribution of earnings.
1918

1917

Items.
Dividends paid member banks
Reserve for depreciation of

1919
1
$414,446.66

$383,908.25

$597,828.54

Balance
Total

5,362,934.40
5,777,381.06

2,921,000.00
3,304,908.25

138,266.25
150,200.00
886,294.79

1

Total

1919

1918

$5,777,381 06 $3,304,90S .25

5,777,381 06

3,304,908 .25

1917
$886,294.79

886,294.79

June 30 and December 31, dividends at the rate of 6% per annum; also includes interest paid on stock surrendered.
Items.

Carried to surplus
Total
1

Items.
Available for distribution

1920

Total surplus December 31, $8,359,034.40.




1919

$1,460,500.00
$5,362,934.40 1,460,500.00
1
5,362,934.40 2,921,000.00

1918

Items.

$75,100.00 J a n u a r v 2 balance
75,100.00
150,200.00
Total

1920

1919

$5,362,934 40

$2,921,000 00

$150 200 00

5,362,934 40

2,921,000 00

150,200.00

1918

to
SCHEDULE 4.— Discount and loan transactions, 1919.
[000 omitted.]

Foreign
Trade
Acceptances.

Commercial
Paper.

Trade
Acceptances.

January . . $6,159
5,012
February .
3,025
March
2,883
April
4,598
May
10,044
June
7,353
July . . . .
8,573
August . . .
10,334
September
October. . . 15,136
45,481
November
43,769
December

$337
283
495
459
108
358
306
129
208
386
2,237
3,031

$1,133
928
15

162,367

8,337

Total

Open Market Transactions.

Discounts

Month.

Secured by U. S.
War Obligations.
Collateral
BankCollatNotes
ers'
Rediseral
Ac- Secured counted.
Notes, i
by
ceptances. Eligible
Paper.

266

$321
82
103
144
179
51
197
45
25
19
53
3,767

$15
220
163
716
1,059
2,124
1,115
1,005
793
1,648
1,257
362

2,483

4,986

10,477

141

$57,552
31,255
9,614
68,445
22,943
34,541
50,729
24,653
32,127
48,616
37,427
30,340

$305,442
317,960
317,994
432,594
415,043
315,893
346,361
210,974
270,424
320,011
340,468
445,343

Total
Bills
Discounted.

Bankers' Bankers' Dollar Domestic
Foreign Domestic ExTrade
Accept- change AcceptAcceptances.
ances.
ances.

$370,959
355,740
331,409
505,241
443,930
363,011
406,061
245,399
314,052
385,816
426,923
526,878

$14,579
13,329
12,202 2
9,962
13,945
22,723
18,018
34,489
16,075
30,365
41,439
24,176

448,242 4.038,507 4,675,398

251,303

$9,338 $100
7,012
5,452 2
7,277
4,556
8,978
6,954
8,076
4,278
11,743
21,277
25
14,322
400
109,262

525

Foreign
Trade
Acceptances.

$1,203
457

771
779
540

$24,384
20,341
17,654
17,239
18,501
31,701
24,972
42,565
20,353
44,082
63,977
39,438

1,660

2,457

365,207

$367

Includes in May and June $400,000 and $196,000, respectively, of notes secured by War Finance Corporation Bonds.
2 Included in these two items are $4,426,265, acceptances repurchased from Federal Reserve Bank, Kan3as City.
3 Does not include $1,550 Liberty Loan Bonds and $29,850 Victory Notes purchased and sold on the instalment plan to employees.




Total
Bills
Total ' Discounted United
States
and
Bills
Bought. Accept- Securities. 3
ances
Bought.

$395,343
376,081
349,063
522,480
462,431
394,712
431,033
287,944
334,405
429,898
490,900
566,316
5,040,607

$7,666
3,000
2,000
2,945
1,000
4,520
100
31,170
2,498
1,516
4,257
60,672 >

33

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
SCHEDULE 5.— Maturities of invested funds on the last Friday of each month, 1919.^

Month.

Within 15 16 to 30 days.
31 to 60 days.
days.

61 to 90 days.

Over 90
days.

S55,736,000
24,214,000
7,478,000
47,425,000
18,755,000
18,291,000
35,172,000
30,385,000
15,979,000
34,383,000
41,524,000
35,860,000

$9,416,000
11,416,000
14,416,000
16,716,000
16,916,000
16,916,000
21,436,000
16,782,000
16,479,000
15,801,000
14,819,000
13,795,000

Total.

1919
January . . . $50,515,000
February . . 59,234,000
March . . . . 70,980,000
April
76,910,000
May
81,121,000
Juns
64,414,000
July
50,750,000
August . . . 57,726,000
September . 73,937,000
October . . 70,424.000
November . 76,272,000
December . 80,815,000

$15,608,000
9,457,000
63,286,000
25,870,000
14,192,000
50,134,000
45,718,000
18,304,000
44,975,000
30,887,000
29,177,000
46,023,000
1

$23,776,000
62,537,000
27,594,000
21,931,000
52,281,000
40,513,000
35,897,000
59,684,000
46,329,000
40,689,000
59,543,000
56,508,000

$155,052,000
155,443,000
169,345,000
172,138,000
166,351,000
173,353,000
167,541,000
182,883,000
197,701,000
192,185,000
221,338,000
233,003,000

Does not include bonds carried for subscribers.

SCHEDULE 6.— Reserve position on the first of each month, 1919.
[000 omitted.]

Month.

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

Net
deposits.

$90,650
98,269
105,570
104,585
108,486
106,860
107,784
115,188
110,614
112,369
116,199
128,368

Federal
Reserve
Total
Renotes
quired
in actual combined reserve.
liability,
circulation.

$160,207
150,965
159,162
167,682
175,955
174,352
178,214
183,544
200,067
211,344
212,041
221,750




$250,857
249,234
264,732
272,267
284,441
281,212
285,998
298,732
311,281
323,713
328,240
350,118

$95,810
94,780
100,614
103,677
108,352
107,141
109,010
113,732
118,980
123,866
125,486
133,628

Total
reserve

$111,881
113,333
124,427
107,360
117,668
118,648
125,924
136,378
152,100
152,715
169,172
107,987

Adjusted j
Reserve
rediscounts •
with other l ReExcess
ReFederal
Reserve serve.
serve
Reserve
1918.
banks
eliminated.

$16,071
18,553
23,813
3,953
9,316
11,507
16,914
22,646
33,120
28,849
43,686
34,359

45%
45%
47%
39%
41%
42%

44% '
46%
49%

^ ' /O

52%
48%

25%
39%
37%
38%
40%
42%
42%
44%
49%
47%
52%
36%

27%
47%
53%
55%
04%
71%
59%
55%
39%
26%

34

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON
SCHEDULE 7.— Rediscounts with other Federal Reserve Banks.

Rediscountc.d with endorsement of this bank.

Dates of Borrowing.

Federal Reserve
Bank of
Acceptances.

New York . . . .
Cleveland . . . .
Richmond . . .
Atlanta
Chicago
St. Louis . . . .
Kansas City .
Dallas . . . . . . .
San Francisco.

«1.5,110,000 '
5,034,000 ,
.5,080,000 ;
5,064,000
30,364,000
25,249,000
10,070,000'
5,006,000
10,081,000

Total

Rediscounts.

$10,017,000
10,028,000

Amount.

Date.

January 3, 1919.
January 22, 1910.
February 7, 1919.
February 11, 1919. .
February 19, 1919..
February 27, 1919. .
April 2,*1919
June 26, 1919
November 13, 1919.
November 24, 1919.
December 19, 1919

20,045,000

111,118,000

$5,010,000
10,017,000
5,034,000
10,128,000
10,028,000
5,060,000 '
10,048,000
5,062,000
20,245,000
20,227,000
30,304,000
131,163,000

i Repurchased $4,426,000 on March 24, 1919.

SCHEDULE 8.— Summary of weekly transactions in the gold settlement fund with
other Federal Reserve Banks, January 1 to December 31, 1919.
[000 omitted.]

IMHECT THANSFEHH.

SETTLEMENTS.

Gain for
month.

Month,
1919.
Received.

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

Total
1

Paid.

Net
loss.

Received.

Paid.

Net
Gain.

$33,685
30,463
5,000
10,007
7,430
10,500
16,666
13,516
6,910
3,990
43,006
43,378

$50,4.54
50,000
94,426
9.5,000
54,761
67,000
86,000
24,934
105,794
31,453
8,405
64,005

$16,769
19,537
89,426
84,993
47,331
56,500
69,334
11,418
98,884
27,463
. 34,601
20,627

$1.5,573
23,253
77,098
83,670
58,309
44,397
84,806
48,145
78,342
49,048
894
39,090

57,548
2.5,301

$15,573
21,835
73,284
83,670
58,309
39,862
83,983
48,145
75,370
49,048
56,654 2
13,789

224,551

732,232

507,681

602,625

96,411

506,214

Net gain transfers.




81,418
3,814
4,535
823
2,972

2 Net loss settlement*.

$1,196 2
2,298
16,142 2
1,323 2
10,978
16,638 2
14,649
36,727
23,514 «
21,585
22,053 2
6,838 2

1,467

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

35

SCHEDULE 9.— Currency transactions.
Currency
received. '

Month.

Currency
paid o u t . '

Currency handled in
sorting division.

Dollars.
January . .
February .
March....
April . . . .
May
June
July
August . .
September
October . .
November
December.
Totals
1

Dollars.

Dollars.

47,000,000
28,280,000
33,842,000
40,293,000
47,230,000
41,987,000
47,230,000
38,688,000
39,525,000
.53,832,000
36,890,000
51,056,000
503,853,000

17,173,000
26,440,000
26,579,000
27,674,000
17,761,000
31,536,000
37,408,000
38,885,000
37,980,000
41,164,000
39,070,000
60,664,000
402,340,000

71,217,000
31,946,000
37,078,000
39,897,000
53,720,000
50,693,000
55,239,000
44,533,000
48,320,000
58,323,000
45,909,000
53,561,000
590,436,000

Pieces.
10,233,000
6,134,000
7,156,000
7,147,000
8,956,000
8,736,000
9,708,000
8,149,000
8,768,000
9,774,000
8,390,000
9,595,000
102/746,000

Includes coin.
SCHEDULE 10.— Federal Reserve Bank notes, December SI, 1919.
Items.

Total received from comptroller .
Total notes retired and destroyed
Notes outstanding
Notes held by bank
Net amount in circulation

Ones.

Twos.

$17,767,500
4,032,002
13,734,898
200
13,734,618

Total.

Fives.

$7,425,000
1,416,598
6,008,402

$2,171,500
1,002,800
1,168,700

6,008,402

1,168,700

United States Securities pledged to secure circulation.
United States 2 % Certificates of Indebtedness.

$27,364,000
6,452,000
20,912,000
200
20,911,800

821,436,000

SCHEDULE 11.— Federal Reserve notes issued by Federal Reserve agent.
Month.
January . . . .
February . . .
March
April
May
June . . . . . .
July
August . . . .
September
October . . . .
November . .
December. . .
Total
1

Decrease.




Outstanding on
first of month.
$168,986,330
162,564,025
163,221,085
171,598,325
182,782,595
177,827,360
181,983,490
190,567,720
204,535,435
221,511,505
222,289,310
230,937,090

Issued during ; Retired during
month.
month.
$2,300,000
10,960,000
17,500,000
21,500,000
7,700,000
16,500,000
19,820,000
28,700,000
27,400,000
15,900,000
22,800,000
34^420,000
225,500^000

$8,722,305
10,302,940
9,122,760
10,315,730
12,655,235
12,343,870
11,235,770
14,732,285
10,423,930
15,122,195
14,152,220
10,639,120
139,768,360

Net increase.
$6,422,305 i
657,060
8,377,240
11,184,270
4,955,235 i
4,156,130
8,584,230
13,967,715
16,976,070
777,805
8,647,780
23,780,880
85,731,640

36

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
SCHEDULE 12.— Federal Reserve notes issued and retired by

Denominations.

Outstanding
January 1,
1919.

Issued.

denominations.

Retired.

Outstanding
December 31,
1919.

$27,233,700
71,834,770
53,298 000
6,313,100
10,306,700

Totals

$33,025,750
62,307,560
35,477,900
4,969,550
3,922,100
10,500
55,000

' $38,707,950
101,447,210
81,500,160
12,743,550
12,984,600
689,500
5,245,000
400,000
1,000,000

168,986,330

Fifties
Hundreds .
Five hundreds
One tliousands .

$44,500,000
91,920,000
63,680,000
11,400,000
0,600,000
700,000
5,300,000
400,000
1,000,000
225,500,000

139,768,360

254,717,970

SCHEDULE IS.— Federal Reserve note movement between districts, l!tl!>.

Hank.

New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago . . .
St. Louis
Minneapolis
Kansas Citv
Dallas
San Francisco
Total




Received
from

Sent to

Net excess
returned.

S45.236.000
4,247,000
2,325,000
2,238,000
1,608,000
3,681,000
1,073,000
420,000
522,000
307,000
1,062,000

$59,738,000
(1,873,000
4,427,000
4,392,000
2,471,000
6,369,000
1,220,000
1,378,000
1,621,000
509,000
1,295,000

$14,502,000
2,026,000
2,102,000
2,154,000
803,000
2,088,000
147,000
958,000
1,099.000
202,000
233,000

1)2 719,000

90,293,000

27,574,000

SCHEDULE 14.—Available supply of Federal Reserve notes on December SI, 1919.

Held by

Fives.

Tens.

Twenties.

Fifties.

Hundreds.

Five
Hundreds.

Thousands.

Five
Thousands.

Ten
Thousands.

Total

Federal Reserve Agent
Sub-Treasury, Boston
Comptroller of the
Currency
Total printed
Being printed

$4,000,000
.5,000,000

$8,760,000
4,000,000

15,120,000
8,000,000

$2,200,000
2,000,000

.11,200,000
2,400,000

$1,700,000
200,000

$1,100,000
400,000

$1,600,000
2,000,000

$3,000,000
4,000,000

$28,680,000
28,000,000

2,780,000
11,780,000
19,920,000

2,200,000
14,960,000
30,200,000

5,360,000
18,480,000
26,960,000

17,800,000
22,000,000
1,200,000

13,200,000
16,800,000
0

5,800,000
7,700,000
0

23,600,000
25,100,000
0

8,000,000
11,600,000
0

8,000,000
15,000,000
0

86,740,000
143,420,000
78,280,000

31,700,000

45,160,000 i 45,440,000 '

23,200,000 ! 16,800,000

7,700,000

25,100,000 \ 11,600,000

15,000,000

221,700,000

(•rand total

SCHEDULE 15.—Amount of checks handled by the Transit

On banks in Boston
Clearing House.

Other banks in
this district.

On Treasurer of
United States.

Department.

O n banks in other
districts.

Total.

Month.
1919.
January . .
February .
March . . .
April
May
June
July
August . . .
September
October. . .
November
December
Total

$587,933,000
440,381,000
534,264,000
532,010,000
570,704,000
645,121,000
668,824,000
569,979,000
638,796,000
668,482,000
649,347,000
789,564,000

1918.

1919.

$341,288,000
288,249,000
347,749,000
405,416,000
442,529,000
580,929,000
501,702,000
456,349,000
425,558,000
612,811,000
598,042,000
587,616,000

$286,910,000
230,876,000
309,496,000
288,114,000
309,498,000
352,634,000
350,064,000
333,415,000
391,035,000
408,427,000
390,445,000
458,240,000

1918.

$121,425,000 $112,282,000
69,931,000
110,032,000
61,832,000
138,971,000
54,427,000
148,691,000
35,486,000
158.305,000
32,887,000
228,442,000
47,180,000
192,372,000
164,889,000
225,232,000
35,985,000
216,039,000
20,635,000
276,689,000
24,819,000
274,377,000
63,692,000
277,981,000

7,29.5,405,000 5,588,238,000 4,109,154,000 12,368,556,000




1919.

1919.

724,045,000

1918.

1918.

$53,693,000
49,067,000
62,452,000
64,188,000
82,473,000
89,943,000
105,785,000
156,068,000
108,790,000
124,663,000
123,211,000
147,094,000

$77,578,000
58,755,000
77,140,000
82,109,000
75,292,000
81,090,000
75,507,000
71,930,000
82,198,000
81,557,000
77,355,000
85,688,000

$115,432,000 $1,064,703,000
799,943,000
84,305,000
982,732,000
92,665,000
956,660,000
113,823,000
990,980,000
101,513,000
1,111,732,000
98,339,000
1,141,575,000
129,361,000
1,140,213,000
115,132,000
1,148,014,000
117,629,000
1,179,101,000
145,919,000
1,141,966,000
122,909,000
1,397,184,000
90,160,000

1,167,427,000

926,199,000

1,327,187,000

13,054,803,000

$631,838,000
531,653,000
"641,837,000
732,118,000
784,820,000
997,653,000
929,220,000
952,781,000
868,016,000
1,160,082,000
1,118,539,000
1,102,851,000
10,451,408,000

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
SCHEDULE 16.— Custody department — Volume of securities handled, 1919.
Pieces of
collateral
handled.

War loan deposit account
Discounted notes
Safe-keeping all accounts
Totals

Pledged.

Withdrawn.

Balance at
end of year.

$619,352,000
1,624,010,000
999,461,000

$697,722,000
1,637,382,000
976,319,000

$132,985,000
190,048,000
69,045,000

290,810
1,554,788
1,307,974

3,242,823,000

Collateral for

3,311,423,000

392,078,000

3,153,572

SCHEDULE 17.— Custody department— Character of securities held December, 1919.
War loan
deposit
account.

Collateral for

$20,809,000
8,206,000
6,000,000
14,048,000
44,870,000

United States certificates of indebtedness
Industrial and transportation bonds
Bonds of foreign governments
United States Government bonds
Commercial paper

Discounted
notes.

Safe-keeping
for banks
only.

$15,218,000

$13,022,000

110,170,000
7,950,000

20,764,000
373,000

SCHEDULE 18.— Collateral department—Coupons cut, 1919.
Number
of banks.

Month.

Number
of coupons.

Amount
of coupons.

156
70
343
415
339
206
80
64
445
648
418
444

Total

6,751
1,447
26,971
174,005
35,505
9,602
4,112
4,947
32,490
76,252
34,688
46,682

$171,535
34,264
544,721
1,820,440
637,416
134,027
116,068
58,551
597,472
1,329,929
662,675
743,943

453,452

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

6,851,041

SCHEDULE 19.— Items of interest from the schedules of this and other official reports
in connection with the fiscal operation of the United States in this
district during 1919.
RECEIPTS.

Proceeds of the fourth Liberty loan payments, 1919
Proceeds of the Victory loan payments
Proceeds of the United States tax certificates
Proceeds of the United States certificates (fifth loan)
Proceeds of United States certificates (1920 loan)
Total certificates sold
Federal taxes collected
•
Proceeds of War Savings Stamps, December 31, 1919
Transfers from other Federal Reserve banks, net

$273,000,000
383,000,000
146,000,000

$73,000,000
373,000,000

802,000,000
544,000,000
8,000,000
77,000,000

DISBURSEMENTS.

Expenditures disbursed by check
Transfers to other Federal Reserve banks, net
Total United States certificates paid




724,000,000
1,116,000,000
832,000,000

SCHEDULE 20.— Certificates of indebtedness sales and

Dated.

Due.

Rate
per cent.

Allotment
to sell.

payments.
Number of days

Tol ;il issued.

Patd by credit
of deposits.

Paid by
other issues
certificates.

FIFTH LOAN CERTIFICATES.
1919.
January 2
January 16
January 30
February 13
February 27
March 13
April 10
M ay 1
Total

1919.
June 3
June 17
; July 1
July 15
July 29
August 12
; September 9
October 7

44
4^
44
4*
44
4|
44

394,200,000

$60,154,500
49,090,500
48,800,000
48,421,500
41,909,000
48,454,000
43,705,000
42,346,500
382,881,000

$55,978,000
44,335,000
43,338,000
44,833,500
39,052,500
42,571,500
39,913,000
39,841,500
349,8(13,000

$2,315,500
914,500
738,000
3,968,000

$36,276,500
29,015,000
32,215,500
8,924,500
14,188,000
35,538,500
15(1,158,000

165,000,000
52,000,000
52,000,000
52,000,000
43,300,000
43,300,000
43,300,000
43,300,000

$31,223,000
8,958,500
15,204,000
6,672,500
10.589,500
29,604,500
102,252,000

$1,228,000
17,521,500
15,698,000
1,416,500
3,204,000
4,855,000
43,923,000

$41,935,500
43,855,500
45,765,500
14,535,500
146,092,000

$36,235,500
40,900,000
40,427,000
13,948,500
131,511,000

$4,214,000
535,000
3,647,000
150,000
8,546,000

$13,446,000
5,704,000
31,752,000
18,521,500
47,722,000^
117,145,500
802.276,500

$12,402,000
5,476,500
29,812,500
17,891,000
26,888,000
"92,470,000
676,096.000

1919 TAX CERTIFICATES.
1919.
June 17
June 16
September 15.
December 15 .
September 15.
December 15 .

January 16
March 15 . .
June 3 . . . .
June 3 . . . .
July 1
July 1
Total

44
4*

1920 LOAN CERTIFICATES.
August 1
August 15
September 2
December 1
Total

1919.

1919.
July 15
September 15.
September 15.
December 1 . .
December 15 .
^Total „
Grand Total. .




January 2 .
: January 15
: February 2
' February 16

1920.

$43,300,000
43,300,000
43,300,000
129,900,000
1920 TAX CERTIFICATES.

1920.
March 15
March 15 . . . .
September 15.
March 15
June 15

L SCHEDULE

21.— Distribution

by issues of certificates of indebtedness

BOND SERIES
Dated.
1919.
January 2
January 16
January 30
February 13
February 27
March 19
April 10
May 1
Total

Trust companies.

National banks.
Number.
285
261
278
253
250
215
236
' 195
375

A-ount,
35,693,000
28,463,000
29,849,000
28,975,500
24,972,000
31,575,000
26,319,500
29,068,500
234,915,500

5»g*
59
58
61
60
60
65
60
69
61

Number.
139
118
149
114
118
106
111
84
216

Amount.
22,602,500
18,854,500
17,644,000
18,027,500
15,981,000
15,419,500
16,050,500
13,043,000
137,622,500

Per cent,
of issue.
38
38
36
37
38
32
37
30
36

Other banks and individuals.
Amount.
Percent.

Number.
60
53
46
45
46
42
38
9
118

$1,859,000
1,773,000
1,307,000
1,418,500
956,000
1.459,500
1,335,000
235,000 '
10,343,000 :

3
4
3
3
2
3
3
1
3

Total.
Number.
484
432
473
412
414
363
385
288
709

Amount.
$60,154,500
49,090,500
48,800,000
48,421,500
41,909,000
48,454,000
43,705,000
42,346,500
382,881,000

1920 LOAN SERIES
Dated.
1919.
August 1
August 15
September 2
December 1
Total

National banks.
Number.
245
296
243
152
348

Amount.
25,965,500
27,553,000
31,421,000
8,183,000
93,122,500

Trust companies.
Per cent,
of issue.
62
63
68*
56
64

Number.
97
133
91
54
169

A-ount.
$15,504,000
15,464,500
14,167,500
6,252,500
51,388,500

5££
37
35
31
43
35

Other banks and individuals.
Total.
Per Cent, Number.
Amount.
Amount.
of issue.
17
$466,000
$41,935,500
359
20
838,000
449
43,855,500
8
177,000
342
45,765,500
*
1
100,000
1
.207
14.535,500
38
1,581,000
1
555
146,092,000

Number.

TAX SERIES
Dated.
1919.
January 16
March 15
June 3
June 3
July 1
Julv 1
July 15
September 15
September 15
December 1
December 15
Total




Trust companies.

National banks.
Number.
97
70
68
51
51
73
55
32
61
115
105

Amount.
22,500,500
12,703,500
20,658,500
5,136,500
10,017,000
20,003,000
5,791,500
4,545,500
17,285,000
11,950,500
25,957,500
156,549,000

Per cent,
of issue.
62
44
64
57*
71
56|
43
79*
54 i
64 £
54
57

Number.
49
53
38
30
31
47
28
15
35
43
54

Amount.

$13,395,000
16,198,000
11,087,000
3,446,000
3,976,000
14,941,000
7,064 000
1,158,500
13,869,000
6,426,000
21,624,500
113.185.000

Per cent,
of issue.
37
56
34*
38*
28
42
52*
20*
43*
34*
45
4H

Othe • banks and indh'iduals.
Per cent
Amount.
of issue.
16
1
$381,000
6
113,500
0
14
470,000
1*
10
342,000
4
4
195,000
1
10
594,500
1*
15
590,500
4*
0
0
0
14
598,000
2
5
145,000
1
4
140,000
1
1j
3.569 500

Number.

Total.
Number.
162
129
120
91
86
130
98
47
110
163
163

Amount.
$36,276,500 j
29,015,000 ;
32,215,500
8,924,500
14,188,000 !
35,538,500
13,446,000
5,704,000
31,752,000
18,521,500
47.722,000
273,303,500

41

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

SCHEDULE 22.—Subscriptions to certificates of indebtedness classified by states.
Fifth loan
Certificates.*

State.
Maine
.
New Hampshire
Vermont
Massachusetts . .
Rhode Island . .
Connecticut . . . .
Total

$18,930,000
15,433,000
9,034,000
319,901,000
43,905,500
68,589,000
475,792,500

1920 Loan
Certificates.

1919 Tax
Certificates.**

1920 Tax
Certificates.**

$2,661,000
1,636,500
461,000
104,465,000
14,297,500
17,822,500
141,343,500

$1,507,000
1,642,000
580,500
88,183,500
10,871,000
14,285,500
117,069,500

$6,535,500
4,278,000
2,637,000
103,209,500
11,383,500
18,048,500
146,092,000

Total,
of States.
$29,633,500
22,989,500
12,712,500
615,759,000
80,457,500
118,745,500
880,297,500

* Includes sales of certificates in 1918.
** Does not nclude certificates issued through exchange after 'ash subscriptions closed.

SCHEDULE 23.—Subscriptions to Victory notes by days.
Day.

1919.
April 22
April 23
Apeil 24
April 25
April 26
April 28
April 29
April 30
May 1 .
May 2 .
May 3 .
May 5 .

$31,623,100
13,780,300
15,643,650
8,698,900
10,566,850
10,397,750
11,837,750
20,310,700
22,328,800
13,014,500
12,489,350
11,317,800

Total.

1919.

$31,623,100
45,403,400
61,047,050
69,745,950
80,312,800
90,710,550
102,548.300
122,859,000
145,187,800
158,202,300
170,691,650
182,009,450

May
May
May
May
May
May
May
May
May
May
May

Dav.

6 .
7 .
8 .
9
10
12
13
14
15
16
20

$15,551,450
30,881,250
26,142,900
27,233,300
40,273,000
46,360,900
32,110,600
10,022,550
2,525,000
2,090,300
12,023,050

Total.
$197,560,900
228,442,150
254,585,050
281,818,350
322,091,350
368,452,250
400,562,850
410,585,400
413,110,400
415,200,700
427,223,750

SCHEDULE 2-t.— Subscriptions to Liberty loans and Victory notes classified by states.
State.

First loan.

Second
loan.

Third
loan.

Fourth
loan.

Victory
loan.

Maine
$15,186,800 $24,002,850 $18,348,100 $27,694,150 $18,837,700
New Hampshire i 10,515,150 i 15,992,900 14,252,000 21,979,050 16,867,050
7,377,650 10,193,250
9,330,750 : 15,315,450 11,588,100
Vermont.......
Massachusetts. . 234,707,000 325,599.800 228,329,750 405,330,900 252,364,450
25,377,700 38,803,450 28,717,700 61,253,300 45,290,050
Rhode Island
39,283,300 62,357,800 55,558,950 100,528,400 82,276,400
Connecticut . . .
Total
332,447,600 476,950,050 354,537,250 6327101,250 427,223,750

Total.
$104,069,600
79,606,150
53,805,200
1,446,331,900
199,442,200
340,004,850
2,223,259,900

SCHEDULE 25.—Subscriptions to Liberty loans and Victory notes classified by
number of subscribers.
State.
Maine
New Hampshire
Vermont
Massachusetts. .
Rhode Island . .
Connecticut.
Total




First
loan.
68,539
55,374
33,418
613,651
82,391
117,418
970,791

Second
loan.
68,575
48,548
33,769
444,829
51,429
99,491
~746,641

Third
loan.
77,259
55,632
41,972
508,401
104,324
164,767
952,355

Fourth
loan.

Fifth
loan.

118,270
103,905
62,038
910,228
128,101
325,092
1,647,634

53,476
50,117
29,317
466,173
66,443
152,296 i
^817,822 i

SCHEDULE 26.— Classification of subscriptions by amounts— Victory Liberty loan.

.Slate.

$50,00!)
to
$100,000

$10,000
to
$50,000

$10,000

$100,000
to
$200,000

Over
to
$200,000

Total

Massachusetts .
Maine
Vermont
New Hampshire
Rhode Island . .
Connecticut. . . .

$100,077,700
13,184,950
8,310,500
10,742,100
14,097,500
28,832,900

$35,450,200
2,182,000
1,255,200
1,848,050
0,352,350
0.581,300

$27,915,450
1,314,200
920,-400
891,300
5,258,000
7,293.550

$23,053,450
840,050
596,000
1,085,000
3,360,000
0,515,000

$59,201,050
1,310,500
500,000
2,300,000
15.022,200
33,053,050

8252,304,450
18,837,700
11,588,100
10,807,050
45,290,050
82,270,400

Total . . .

181,845,050

53,075,700

43,598,900

30,049,500

112,054,000

427,223,750

SCHEDULE 27.— Sales of War savings stamps.
[In thousands of dollars.]

State.

Population.

Maine
777,000
New Hampshire .
444,000
Vermont
364,000
Massachusetts . . . 3,775,000
Rhode Island
I 025,000
Connecticut

Total




' 1,205,000

j 7,250,000

January.

$155
89
45
555
154
324

1,322

February.

$103
82
45
442
9(5
102

930

March.

00
19
339
81
102
705

April. I May.

June.

July.

August.

September. October.

NoDeember, cember.

Total.

Sales
per
Capita.

34
17
215

107

29
13
245
80
105

40
17
175
58
03

$29
36
14
159
56
62

$32
48
18
183
75
70

$35
47
16
257
133
83

$41
50
17
238
81
74

$00
78
28
308
105
100

$037
027
275
3,383
1,204
1,399

SO. 82
1.41
0.75
0.-89
2.02
1.11

740

505

459

385

356

120

571

501

0S5

7,585

1.04

S30
34
20
207
270

SCHEDULE 2<S.— Character of Payments on Government loans.

Date.

By credit
Government
Deposit.

By cash.

Bv certificates
of
indebtedness.

Total.

Accrued
interest.

FOURTH LIBERTY LOAN.
Cash sales
October 24, 1918
November 21, 1918
December 19, 1918
January 16, 1919
January 30, 1919
Total
Less Reduction of Allotment

$14,094,150.00
42,556,496,13
12,374,479.64
8,396,782.10
10,672,368.02
7,115,774.33
95,810,050.88
113,520.00
95,696,530.88

$4,700,000
94,247,500
6,985,500

$53,235,500.00
214,358,733.87
67,543,038.43
41,185,043.87
30,048,251.37
24,867,830.13
431,838,403.67

105,933,000

431,838,403.67

105,933,000

$72,029,050.00
351,102,730.00
86,903,018.07
49,581,826.03
41,320,019.99
31,983,610.46
033,581,454.55
113. r.2(). 00
033,467,934.55

$109,878.07
153,346.03
277,714.99
765,445.46
1,366,384.55
1,300,384.55

VICTORY LIBERTY LOAN.
Cash sales
May 20, 1919
June 3, 1919
July 15, 1919
August 12, 1919
September 9, 1919
October 7, 1919
November 11, 1919




$8,848,600.00
14,685,262.81
j 11,134,824.51
: 8,193,278.34
, 4,932,347.55
! 3,644,667.99
2,879,037.81
'.
2,701,640.76
57,019,659.77

$24,921,300.00
68,864,292.19
05,914,885.93
31,309,213.04
14,379,807.23
12,169,802.45
10,421,110.17
0,808,894.31

$1,193,500
40,288,000
39,296,500
374,000
130,500
99,000

234,849,305.92

81,381,500

$34,903,400.00
123,837,555.00
110,346,210.44
39,876,491.98
19,442,654.7S
15,913,530,44
13,300,147.98
9,570,535.07
373,250,525.69

$201,100.44
230,066.98
76,134.78
88,430.44
135,277.98
609,305.07
1,340,375.69

CO

SCHEDULE 29.—

Liberty loan conversions.
Exchanged into

»

Issued.

Bond.

Exchanged b y
other Federal
Outstanding.
Reserve Banks.

3*..
1st Loan interest certificates
$265,017,900
Allotment
2,614,700
Other Federal Reserve banks
Total
267,632,600

4's

$167,975,400

$63,828,100

$35,582,100

167,975,400

63,828,100

35,582,100

167,975,400
73,218,500"
408,530,000
317,213,800
54,255,650

First 3J's
First 4's
Victory 3J's .

4i's

9,390,150

2d 4i's

4J's

3-J's

...
880,550
53,186,650 3
331,997,700 3

$247,100
247,100
157,400,1501 i
20,031,8501 |
76,532,3001 !
309,640,6501 1
53,352,9501

304,550
7,573,150
902,700

i Difference between amount issued by this bank presented for conversion.
2 Includes amount of 4's obtained by exchanging 1st loan interim certificates for these.
Includes bonds received for conversion due to the extension of the conversion privilege—March 7, 1919, to December 31, 1919, inclusive.
$4,349,650. Second 4's, $14,359,400.

3

First 4's

SCHEDULE-30.— Bond and certificate deliveries.
Fourth Liberty Loan.

Victory Liberty Loan.

Certificates of Indebtedness,

Denomination.
Bonds
Coupon.
$50
100
500
1,000 . .
5,000 . .
10,000
50,000
100,000
Total




614,336
185,697
14,438
74,748
4,830
4,312
,
898,361

Bonds
Registered.
18,694
30,048
6,033
5,973
742
1,528
136
112
63,266

1919 Tax
Certificates.

Bonds
Coupon.

3,609
12,457
5,948
7,293

619,884
336,192
36,899
131,638
6,446
8,950

397
29,704

1,140,009

Bonds
Registered.
8,563
21,431
4,990
5,948
591
1,046
131
4.5
42,745

Certificates of
indebtedness.

1920 Loan
Certificates.

'1920 Tax
Certificates.

6,940
29,956
16,766
19,594

3,540
11,962
7,038
7,337

2,759
10,206
4,906
6,153

701
73,957

238
30,115

19.5
24,219

j

SCHEDULE 81.— United States certificates of indebtedness redeemed from January 1, 1919, to December 31, 1919.

Date.

Cash
redemption.

Due.

BOND CERTIFICATES,

17,1918
1, 1918
5, 1918
19, 1918

For new
issues.

Government
withdrawals.

Tax
payments.

Total.

1918.

Maturities previous to January 1, 1919
September
October
December
December

Bond
payments.

January
January
May
May

$365,500

$365,500
4*

31,579,000
29,425,500
43,528,000
35,182,000

$149,000
9,784,500

1919 .
1919 .
1919 .
1919 .
1919'
1919 .
1919 .
19192

49,626,000
40,092,500
37,796,500
30,490,000
23,714,500
34,878,000
28,649,500
30,333,500

9,479,500
8,393,000
7,703,500
10,513,000
11,176,500
6,816,000
9,217,000
8,149,500

15, 1919 .
15, 1919 .

1,814,500
80,424,000

17, 1919
16, 1919
15, 1919
15, 1919
15, 1919
15, 1919

14,159,000
23,661,000
24,428,500
8,762,000
11,706,500
29,436,500

16,443,500
300,000
2,307,000
146,000
319,000
257,000

2, 1920
2, 1920
2,1920
16, 1920
15, 1920
15, 1920
15, 1920

14,079,500
6,777,500
3,370,500

450,500
715,000
343,000
5,199,000
103,500
1,770,000
11,741,000
78,399,000

31,689,000
30,135,500
47,645,000
44,966,500

893,000
891,000

16,1919
30, 1919
6, 1919
20, 1919

$110,000
710,000
3,968,000

BOND CERTIFICATES, 1919.

January
January
January
February
February
March
April
May

2,
16,
30,
13,
27,
13,
10,
1,

1919
1919
1919
1919
1919
1919
1919
1919

June
June
July
July
July
August
September
October

3,
17,
1,
15,
29,
12,
9,
7,

200,000
447,000
2,537,000
6,556,000
6,550,500
6,602,500
5,386,500
3,453,000

59,305,500
49,644,000
48,631,000
47,559,000
41,491,500
48,296,500
43,253,000
41,936,000

$711,500
594,000
50,000

TAX CERTIFICATES, 1918.

August
20, 1918
November 7, 1918
TAX

January
March
June
June
July

16,
15,
3,
3,
1,
1,

August
August
September
December
July
September
December
Total . .

July
March
CERTIFICATES,

1, 1919
15, 1919
15,1919
1, 1919
15, 1919
15, 1919
1, 1919

July

1919
1919
1919
1919
1919
1919

$943,500
11,830,000

3,651,000
93,145,000

4,671,500
5,789,500
6,427,000
1,572,500
2,903,500
2,362,500

35,314,000
29,750,500
33,162,500
10,480,500
14,929,000
32,056,000

36,500,000

14,530,000
7,492,500
3,713,500
5,199,000
103,500
1,770,000
11,741,000
831,956,000

1919.

June
June
September
December
September
December

40,000

TAX CERTIFICATES, 1 20.

Called July 1, 1919.




January
January
February
February
March
March
March

634,280,000
- Called September 15, 1919.

81,381,500

1,395,500

Or

46

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
SCHEDULE 32.— Coupons redeemed during 1919.
Number.

Description.

Amount.

563,597
329,581
289,160
1,946
640,142
888,844
1,919,682
2,349,416
15,667
376,372
30,856
16,752
3,803
7,425,818

First Liberty loan 3 |
First Liberty loan 4
First Liberty loan 4J
First Liberty loan i\ 2d
Second Liberty loan 4
Second Liberty loan i\ . . . .
[Third Liberty loan
'Fourth Liberty loan
Fifth Liberty loan 3 |
Fifth Liberty loan 4 |
Certificates of indebtedness .
War finance
Other United States coupons
Totals

$2,810,238.19
584,553.17
1,186,832.00
5,502.46
1,470,219.00
8,094,826.83
8,094,212.11
14,947,826.28
753,985.11
3,755,693.43
2,738,969.68
418,800.00
16,378.25
44,878,036.51

SCHEDULE 34.— War

Finance Corporation
Bonds. %

SCHEDULE 33.— Government Deposits, 1919.

Month.

Payment
by credit.

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

$215,000,000
! 95,000,000
' 56,600,000
' 47,700,000
126,000,000
87,800,000
i 83,100,000
91,400,000
87,800,000
10,400,000
6,900,000
58,800,000
968,600,000

Withdrawals.

Date.

January 1
$146,000,000 Feb ruary 1
104,000,000! March 1
6(5,800,000 April 1
76,500,000 May 1
79,400,000 June 1
105,400,000 July 1
131,200,000 August 1
55,100,000 September 1
110,600,000 October 1 .
20,400,000, November 1
12,300,000 December 1
33,400,000;December 31
947,100,000'

Balance.

Subscriptions.

Banks in

$29,000,000
98,000,000
89,000,000 Maine
78,800,000 New Hampshire
50,000,000 Vermont
96,600,000:' Rhode Island
79,000,000: Connecticut . .
30,900,000. Massachusetts
67,200,000; Boston
44,400,000 BROKERS.
28,400,000
23,000,000
48,400,000

$473,000
63,000
57,000
495,000
1,409,000
2,822,000
15,091,000
6,541,000

26,951,000

SCHEDULE 35.— Change in membership of national banks.
City.

Name of banks.

Date of change.

Reason.

ORGANIZED.

Webster, Massachusetts . . .
Boston, Massachusetts
' Braintree, Massachusetts . .
Southbridge, Massachusetts.
Machias, Maine
|1 Fort Kent, Maine
Everett, Massachusetts

Webster National Bank
January 29, 1919
Citizens National Bank
April 28, 1919
Braintree National Bank May 29, 1919
Peoples National Bank
August 20, 1919
Machias National Bank
November 28, 1919
First National Bank . . . December 4, 1919
Everett National Bank
December 23, 1919

New Bank

LIQUIDATED.

Boston, Massachusetts . . . . Roxbury National Bank i February 5, 1919

Converted to State
Bank.
Consolidated with
First National Bank,
New Bedford.
National Bank of Fairfield June 6, 1919
Converted to State
Bank.
York County National
December 9, 1919 [ Converted to State
Bank
Bank.

New Bedford, Massachusetts Mechanics National Bank May 10, 1919
Fairfield, Maine
York, Maine




47

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
SCHEDULE 36.— List of member trust companies.
Date admitted.

Name of bank.

City.
Bangor, Maine.
Portland, Maine
Arlington, Massachusetts . . .
Boston, Massachusetts
Do
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Cambridge, Massachusetts .
Do.
Fitchburg, Massachusetts . .
Gloucester, Massachusetts . .
Greenfield, Massachusetts
Holyoke, Massachusetts . . . .
Lawrence, Massachusetts . . .
Lynn, Massachusetts
New Bedford, Massachusetts
Newton, Massachusetts . .
Norwood, Massachusetts .
Salem, Massachusetts . . . .
Waltham, Massachusetts. .
Winchester, Massachusetts
Worcester, Massachusetts
Providence, Rhode Island

Do.
Do.
New Britain, Connecticut
New Haven, Connecticut
South Manchester, Connecticut
Waterbury, Connecticut

Merrill Trust Company (branches at
Dexter and Harrison)
Fidelity Trust Company
Menotomy Trust Company . . . .
American Trust Company
Beacon Trust Company
Commonwealth Trust Company
International Trust Company . .
Liberty Trust Company
Market Trust Company
Metropolitan Trust Company
New England Trust Company
Old Colony Trust Company .
State Street Trust Company
United States Trust Company . . .
Charles River Trust Company
Harvard Trust Company
Fitchburg Bank <e Trust Company
f
Gloucester Safe Deposit & Trust Company
Franklin County Trust Company
Hadley Falls Trust Company . . . .
Merchants Trust Company
Security Trust Company
New Bedford Safe Deposit & Trust
Company
Newton Trust Com
ipany
Norwood Trust Company
Naumkeag Trust Company
Waltham Trust Company
Winchester Trust Company
Worcester Bank & Trust Company...
Industrial Trust Company (branches at
Bristol, Newport, Pascoag, Pawtucket,
Warren, Woonsoeket, Westerly, Wickford)
Rhode Island Hospital Trust Company
Union Trust Company (branches i
East Greenwich, Olneyville)
New Britain Trust Company
Union & New Haven Trust Company
Manchester Trust Company
Colonial Trust Company

March
March
November
AugustJanuary
February
June
May

January
December
December
August
January
April
December
March
July
June
April
January
February
September

14, 1918
18, 1918
8, 1918
31, 1917
15, 1918
12, 1917
9, 1917
1, 1918
13, 1919
4, 1917
10, 1918
24, 1915
26, 1918
9, 1918
11, 1917
6, 1918
26, 1917
4, 1919
21, 1919
19, 1918
27, 1918
25, 1918

5, 1919
5, 1917
11, 1917
25, 1918
3, 1919
May
29, 1917
December 26. 1917

June
November
August
September
April

November 9, 1917
March
13, 1918
September
August
December
December
April

13, 1918
21, 1918
8, 1917
30, 1918
6, 1918

SCHEDULE 37.— Member trust companies compared with eligible non-member trust
companies.
Member trust companies.
State.

Maine
New Hampshire
Vermont
Massachusetts .
Rhode Island .
Connecticut . .
Total

Non-member trust companies.

\
Savings and
Time
Deposits.

Number.

Capital
Surplus.

Resources.

Number.

Capital
Surplus.

Resources.

2
0
0
27

$1,500,000

$29,479,000

42

4

38,939,000
15,000,000
2,775,000

489,617,000
139,160,000
16,763,000

$5,542,000
785,000
3,575,000
23,035,000
3,168,000
7,102,000

$71,197,000
4,305,000
38,094,000
228,714,000
28,064,000
58,454,000

$26,375,000
622,000
28,880,000
55,873,000
12,294,000
11,308,000

36

58,214,000

675,019,000

43.207,000

428,828,000

135,352,000




£
60
"7

20
163

48

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
SCHEDULE 38.— Amounts due to member banks and rediscounts by states.

State.

Reserve Accounts.
December
31, 1918.

December
31, 1919.

December
31, 1918.

December
31, 1919.

December
31, 1918.

$4,872,000 $4,156,000
2,918,000
2,266,000
. 1,885,000
1,560,000
90,321,000 76,358,000
8,011,000
9,272,000
9,285,000
8,188,000
117,292,000 101,800,000

$838,000
415,000
634,000
59,795,000
820,000
1,003,000
63,505,000

$1,127,000
447,000
605,000
9,135,000
1,147,000
373,000
12,834,000

17.20
14.22
33.63
66.20
10.23
10.80
54.14

27.11
19.73
38.79
11.95
12.36
4.56
12.12

December
31, 1919.
Maine
New Hampshire
Vermont
Massachusetts.
Rhode Island .
Connecticut . .
Total . .

Ratio of Rediscounts
to Reserve Accounts.

Rediscounts.*

* Does not include paper secured by United States War Obligations.

SCHEDULE 39.— Reserves of national banks in New England as reported by the Comptroller
of the Currency.
[000 omitted.]

1919.

Total Required Excess
Reserve. Reserve. Reserve.

January 1 . . . $64,129
March 4
60,965
May 12
65,967
June 30
63,810
September 12 . 69,095
November 17 . 69,765

$67,162
64,269
66,219
66,421
70,696
75,4.54

$3,033
3,304
252
2,611
1,601
5,689

1918.

January 1
March 4
May 10
June 29
August 31
November 1

Total
Reserves.

Required
Reserve.

$55,557
55,866
56,021
56,392
59,041
63,472

$59,948
57,001
61,274
54,900
59,032
63,115

Excess
Reserve.

$4,391
1,135
5,253
l,492i
9'
357 i

iDeficit.

SCHEDULE 40.— Condition of national banks in New England on dates of Comptroller's
calls, 1919 and 1918.
[000 omitted.]

Date.

March 4, 1918
May 1, 1918
June 29, 1918
August 31, 1918
November 1, 1918 . . . .
December 31, 1918
March 4, 1919
May 12, 1919
June 30, 1919
September 12, 1919
November 17, 1919 . . .

Net
amount
upon which
reserve is
required.

$696,469
697,779
705,450
734,418
786,518
800,866
767,304
826,298
800,708
864,058
874,447




Loans.

$661,860
. 714,788
735,411
694,072
797,579
717,598
681,752
704,493
759,512
790,534
813,534

Borrowed
from
Borrowed
Federal
elsewhere
Total
Reserve
including borrowings.
banks
rediscounts.
including
rediscounts.

$73,467
64,741
33,068
43,138
67,902
114,905
98,134
97,795
103,206
72,778
68,316

$2,890
4,186
5,140
4,132
2,800
1,862
2,468
2,064
3,941
3,023
3,612

$70,357
68,927
38,208
47,270
70,702
116,767
100,602
99,859
107,147
75,801
71,928

% Borrowed
at the
Federal
Reserve
bank.

96.2
93.9
86.5
91.2
96.0
98.4
97.5
97.9
96.3
96.0
94.9

SCHEDULE 41.— Comparison of items reported by member banks in selected cities on the first Friday of each month.
Member Banks in four cities outside of Boston.
[000 omitted.]
1919
United States
bonds and
notes.

January 3
February 7
March 7
April 4
May 2
June 6
July 3
August 1
September 5
October 3
November 7
December 5

....

.
....
....

United States
certificates.

Loans secured
United States
obligations.

Other loans
and
investments.

Reserve with
Federal Reserve
bank.

$20,125
20,000
19,988
19,531
20,340
25,389
25,202
27,672
26,879
26,474
25,471
24,699

$23,933
27,867
38,642
39,376
46,720
29,753
16,085
14,851
20,404
16,993
13,510
16,260

$18,292
17,245
18,644
20,058
11,377
20,082
17,666
16,729
15,916
16,443
14,382
13,358

$226,337
225,033
226,670
226,028
227,493
231,321
232,288
236,220
233,404
236,192
244,911
248,350

Net
demand
deposits.

$14,650
13,756
13,994
14,630
14,966
14,783
13,953
13,810
15,560
18,767
15,344
14,756

Time
deposits.

Government
deposits.

Loans
at Federal
Reserve
bank.

$163,171
162,938
176,838
165,186
169,860
162,209
165,373
172,256
174,068
180,782
176,713
177,218

$73,279
75,445
75,520
76,324
76,676
75,727
75,883
77,873
78,137
78,906
87,624
88,103

$8,491
10,271
11,274
12,468
12,694
24,660
7,603
9,820
14,201
6,197
4,096
9,418

$30,351
26,382
25,679
28,916
28,410
25,439
23,481
18,117
17,686
20,233
15,037
14,820

$552,596
522,182
522,302
529,102
554,906
552,575
572,255
585,862
575,872
583,768
624,223
611,773

$31,968
33,288
28,144
29,728
34,024
32,454
34,23.5
34,377
33,090
33,211
36,313
39,798

$27,777
37,990
45,987
32,495
45,736
87,075
38,484
25,363
53,331
25,712
15,096
21,609

$71,197
59,317
66,346
65,479
81,178
64,868
79,593
81,586
62,168
69,901
84,869
87,616

Member Banks in Boston.
[000 omitted.]
January 3 . . . .
February 7
March 7
April 4
May 2
June 6
July 3
August 1
September 5 . . .
October 3
November 7 . . . .
December 5 . . . .




$17,351
16,581
14,404
14,122
15,177
16,456
16,153
15,853
15,294
14,574
12,816
11,748

$54,674
62,423
96,142
53,145
91,960
59,209
30,305
42,943
55,070
25,532
14,624
30,322

$71,133
67,478
69,906
73,406
63,536
74,251
51,034
53,869
47,820
44,451
30,414
29,061

$514,274
531,162
511,708
550,395
564,699
586,566
610,908
596,164
592,769
601,544
642,845
607,187

$55,631
53,491
55,561
48,060
57,811
56,741
50,262
03,086
61,870
58,573
67,322
65,147

50

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
SCHEDULE 42.— Acceptance liability of national banks in New England.

1919.

March
May 12
June 30
September 12.
November 17
December 31 .

1917.

1918.

$41,668,000
46,154,000
60,036,000
59,878,000
67,089,000
68,784,000

March 4
May 10
June 29
August 3 1 . . .

November 1
December 31

$58,373,000
49,704,000
48,599,000
48,744,000
57,937,000
44,809,000

March 5 . . .
May 1
June 20 . . . .
September 11
November 20
December 31

$24,372,000
25,459,000
33,147,000
35,082,000
44,500,000
49,558,000

SCHEDULE 43.—Member banks authorized to accept drafts and bills of exchange up to 100%
of their capital and surplus.

Bank.

Location.

Beacon Trust Company
Boston, Massachusetts
Commonwealth Trust Company. .
do
First National Bank
do
Fourth-Atlantic National Bank . .
do
International Trust Company . . .
do
Merchants National Bank
|
do
National Shawmut Bank
:
do
National Union Bank
do
Old Colony Trust Company
!
do
Second National Bank
;
do
Webster & Atlas National Bank .:
do
Dedham National Bank

Dedham, Massachusetts.

Granted.

May 8, 1918
February 28, 1919
April 14, 1915.
April 24, 1918.
February 21, 1919
March 30, 1916 . . ,
June 7, 1915
December 11, 1917
May 25, 1916
January 26, 1916
July 26, 1916 . . .
April 11, 1918

Capital and
Surplus.

$1,800,000
1,500,000
2.5,500,000
3,000,000
4,000,000
5,000,000
19,000,000
2,000,000
16,000,000
5,000,000
2,000,000
300,000

Massasoit-Pocasset National Bank Fall River, Massachusetts
Safety Fund National Bank
Fitchburg,
do

November 13, 1917
October 5, 1917 . .

1,000,000
500,000

Hartford-Aetna National Bank.
Phcenix National Bank

Hartford, Connecticut
do.
do. . .

October 27, 1917 .
July 1, 1918

4,000.000
1,500,000

First National Bank
New Bedford Safe Deposit &
Trust Company
Thames National Bank

New Bedford, Massachusetts

December 18, 1919

1,000,000

do.
do.
Norwich, Connecticut. . .
Canal National Bank
Portland, Maine
Portland National Bank
j
do.
Do.
Blackstone-Canal National Bank ' Providence, Rhode Island .
Merchants National Bank
i
do.
do.
National Bank of Commerce . . . . Providence,
do.
Providence National Bank
!
do.
do.

September 12, 1919
August 5, 1919 . . .

500,000
1,550,000

July 3, 1919
June 24, 1919
July 12, 1917
November 7, 1918
December 24, 1919
December 16, 1918

1,000,000
600,000
1,000,000
2,000,000
1,700,000
1,000,000

Springfield National Bank

January 25, 1918 .

1,000,000

May 4, 1916

2,000,000

Merchants National Bank




| Springfield, Massachusetts
Worcester, Massachusetts .

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

51

SCHEDULE 44.— Other accepting member banks.
Bank.

First National Bank
First National Granite Bank
American Trust Company
Citizens National Bank
Mattapan National Bank
Metropolitan Trust Company
State Street Trust Company
Howard National Bank
National State Capital Bank
National Bank of Fairhaven
Fall River National Bank
Metacomet National Bank
Cape Ann National Bank
Gloucester National Bank
Second National Bank
Merchants National Bank
First National Bank
North Adams National Bank
Industrial Trust Company
Mechanics National Bank
Rhode Island Hospital Trust Company
Union Trust Company
Chicopee National Bank
Third National Bank
Welden National Bank
' . .
Citizens National Bank
Mechanics National Bank

Location.

Capital and
Surplus.
$174,000
323,000
3,561,000
761,000
214,000
708,000
3,100,000
653,000
584,000
169,000
794,000
1,168,000
338,000
239,000
252,000
2,434,000
2,010,000
483,000
8,473,000
807,000
7,350,000
1,597,000
1,138,000
1,406,000
176,000
559,000
689,000

Adams, Massachusetts.
Augusta, Maine
Boston, Massachusetts
Do
Do
Do
Do
Burlington, Vermont
Concord, New Hampshire . . .
Fairhaven, Massachusetts . . .
Fall River, Massachusetts. . . .
Do
Gloucester, Massachusetts . . .
Do
Maiden, Massachusetts
New Bedford, Massachusetts .
New Haven, Connecticut
North Adams, Massachusetts.
Providence, Rhode Island . . .
Do
Do
Do.
Springfield, Massachusetts.
Do
St. Albans, Vermont.
Waterbury, Connecticut .
Worcester, Massachusetts

SCHEDULE 45.— Non-member accepting banks and other acceptors in this district.

Bank.

Federal Trust Company, Boston

Capital and
surplus.

Bankers.

$1,300,000

Brown Brothers Company,
Boston, Massachusetts.
First National Bank Corporation
Boston, Massachusetts.
Lee, Higginson & Company,
Boston, Massachusetts.
J. B. Noors & Company,
Boston, Massachusetts.
Shav.mut Corporation,
Boston, Massachusetts.

Massachusetts Trust Company, Boston

750,000

Brookline Trust Company,
Brookline, Massachusetts
Casco Mercantile Trust Company,
Portland, Maine
Union Trust Company, Springfield,Massachusetts

400,000
700,000
1,500,000

SCHEDULE 46.— Acceptances outstanding November 17, 1919.

Accepted by:—

Member banks
Non-Members in Massachusetts
Acceptance Corporations and Private Bankers
Total
Includes $16,681,000 Member State Banks.




Amount.

$83,770,000 i
4,627,000
21,338,000
$109,735,000

52

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
SCHEDULE 47.— Banks granted fiduciary powers under the Federal Reserve Act.

Date granted.

Location.

Bank.

March 10, 1919 . . . Brockton, Massachusetts
Brockton National Bank
Do
'Cape Ann National Bank
Gloucester, Massachusetts
March 17, 1919
'Peoples National Bank
Brattleboro, Vermont
Do
'County National Bank
Bennington, Vermont
March 21, 1919 . . . Bath, Maine
'Bath National Bank
March 31, 1919 . . . New Haven, Connecticut
'Merchants National Bank
Do
Torrington National Bank
Torrington, Connecticut
Do
New Britain, Connecticut
. New Britain National Bank
Bristol National Bank
Do
Bristol, Connecticut
'Ansonia National Bank
Do
Ausonia, Connecticut
Do
New London City National Bank
New London, Connecticut . .
April 4, 1919
'First National Bank
Concord, New Hampshire
Do
Fall River, Massachusetts
'Massasoit Pocasset National Bank
Do
'Northampton National Bank
Northampton, Massachusetts
Do
National Bank of Methuen
Methuen, Massachusetts
Do
Great Barrington, Massachusetts . . National Mahaiwe Bank
Do
'Peoples National Bank of Barrc
Barrc, Vermont
'Agricultural National Bank
Do
Pittsfield, Massachusetts .
Metacomet National Bank
Do
Fall River, Massachusetts
Woburn National Bank
Do
Woburn, Massachusetts
Do
Provincetown, Massachusetts
First National Bank
Do
'Vermont National Bank
Brattleboro, Vermont
May 9, 1919
National City Bank
Lynn, Massachusetts
May 19, 1919
'Greylock National Bank
Adams, Massachusetts
Do
Citizens National Bank
Waterburv, Connecticut
First National Bank
Do
Adams, Massachusetts
City National Bank
May 23, 1919
Belfast, Maine
'Second National Bank
June 13, 1919
New Haven, Connecticut
'Norway National Bank
Do
Norway, Maine
Merchants National Bank
Do
Newburyport, Massachusetts
Do
'Springfield National Bank
Springfield, Massachusetts
June 26, 1919
Southbridge National Bank
Southbridge, Massachusetts
Do
Foxborough, Massachusetts
Foxboro National Bank
July 5, 1919
First National Bank
Amherst, Massachusetts
First National Bank
July 12, 1919
New Bedford, Massachusetts
Merchants National Bank
August 20, 1919 . . . New Bedford, Massachusetts
September 16, 1919 Boston, Massachusetts
Boylston National Bank
Martha's Vineyard National Bank
September 24, 1919 Tisburv, Massachusetts
November 10, 1919 Montpelier, Vermont
First National Bank
November 22, 1919 Leominster, Massachusetts
Leominster National Bank
North Adams National Bank
Do
North Adams, Massachusetts
'National Bank of Commerce
December 20, 1919 New London, Connecticut




' Supplementary Application.

SCHEDULE 48.— Discount rates.
Secured by
Government war
obligations.

Commercial paper.
Member banks collateral notes.
Date.

1917.
March 21
August 1
October 23
December 5
Dcember 12 . . . .
1918.
January 7
April 8
1919.
November 4 . . . .
December 12. . . .

SCHEDULE 49.—Money rates in Boston, 1919
Kind.
Brokers' demand loan
Time paper secured
Commercial paper discounted:
90 days or under
Over 90 days
Commercial paper purchased:
90 days or under
Over 90 days
Bankers' acceptances:
Endorsed
Unendorsed
Bank borrowings
Year money
Town notes
Loans secured by United States
war obligations




February.

March.

April.

5*-6
5i-6

5*-6
5*-6

5*-6
5*-6

5*-6
5*-6

5*-6
5*

5*-6
5i-6

5*-6
5*-6

5-6i
5*-6i

5-6
5-6

5-6
5-6

5-6
5-6

5-6
5i-6

5-6
5J-6

5-6J
5*6i

5-6
5-6

5-5*
5-5*

5-5*
5-5*

5-6
5|-6

5-5*
5-5*

5-6
5J-6
5
5-5*
5-5f

5-5*
5*
4.27
4.49

5-5*
5*
4.13
4.54

5-5*
5*
4.20
4.38

4J-5

4{-5

January.

May.

June.

July.

4A
5-5*
6
3.97
4.19

5-5*
5!
3.96
4.50

4i-5

4i-5
1

i
5-5*
5f
4.10
4.50

4i-5

i
5-5*
5*
4.38
4.78
4J-5

Period ending the 15th of each month.

1
SCHEDULE 50.— Debits to depositors' accounts by the Clearing House banks in the larger cities of this district.
[000 omitted.]

Bangor.

1919.

Boston.

Fall
River.

Hartford.

Holyoke.

New
Lowell. Bedford.

New
Haven.

Portland. Providence.

Springfield. Waterbury. Worcester.

January . .

$10,623

$1,053,647

$26,315

$79,014

$12,324

$20,184

$25,026

$71,937

$131,323

$59,958

$30,017

$63,808

February .

10,444

927,223

23,635

65,775

10,570

17,895

23,231

58,502

103,031

49,049

25,151

50,616

March . ..

10,420

981,488

24,622

76,515

10,863

16,958

22,412

58,770

108,184

50,373

23,809

54,512

April

12,531

1,171,448

30,942

102,125

13,188

21,283

30,110

83,116

143,931

64,054

30,577

65,014

May

12,430

1,041,853

33,435

83,995

10,998

18,586

26,709

63,889

124,194

56,036

25,086

62,135

June

11,262

1,193,097

35,843

91,338

12,228

20,981

26,321

62,423

133,550

49,585

27,451

65,217

14,857

1,587,756

40,795

112,907

18,054

25,417

32,360

80,966

166,781

61,501

34,340

80,896

August . . .

10,703

1,117,205

31,036

79,628

13,108

19,490

27,289

64,987

123,065

55,389

26,471

61,347

September

11,368

83,122

13,481

19,978

28,021

65,202

$21,295

129,224

60,761

30,927

63,268

October. . .

16,054

124,451

19,196

26,180

38,059

88,592

44,417

189,496

87,175

34,351

100,251

July

,

November

13,128

1,059,086 j 30,438
1,605,156
45,132
1,421,798
54,701

87,841

17,169

28,068

40,535

72,787

30,820

159,224

78,148

34,617

78,862

December

15,559

1,782,267

54,426

115,422

18,573

34,820

48,235

88,124

38,725

222,808

88,474

39,894

93,623

149,379

14,942,024

431,320

1,102,133

169,752

269,840

368,308

859,295

135,257

1,731,811

760,503

362,691

839,549

Total . .




55

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

SCHEDULE 51.— Building permits for new construction issued in leading cities of this
district during 1919 and 1918.

1919.

1918.
Per cent
change
in year.

City.
Number
permits.

Total

$828,057
962,648
891,380
3,830,760
1,366,303
2,616,465
1,234,501
1,326,166
6,717,180
7,824,067
1,587,033
3,773,793
5,078,587

122
135
96
341
111
220
135
186
277
594
144
366
634

$135,565
505,946
197,024
1,564,992
1,570,473
865,173
67,638
139,620
848,089
2,947,866
408,387
751,085
1,298,939

+510
+ 90
+360
+144
-14
+202
+ 1,725
+849
+692
+ 165
+ 188
+402
+290

7,891
1,237

$38,036,940
15,936,206

3,361
476

$11,300,797
4,105,322

+ 230
+288

9,128

Total outside Boston
Boston

Number
permits.

359
264
228
815
314
521
396
385
643
1,093
361
1,022
1,490

Brockton....
Fall River . .
Fitchburg . . .
Hartford . . . .
Lawrence . . .
! Lowell
Lynn
Manchester. .
New Bedford
New Haven .
Portland . . . .
Springfield . .
Worcester . .

Amount.

53,973,146

3,837

15,406,119

+250

Amount.

SCHEDULE 52.— Business through the port of Boston.
[000 omitted.]

Excess of Imports.

Imports.

Exports.
Month.

1918.

1917.

* $1,964
* 7,638
* 4,679
* 5,644
952
* 27,564
* 3,198
* 11,140
7,600
16,330
6,437
* 4,919

$10,746
4,671
5,998
5,158
11,258
20,292
1,886
4,486
7,140
5,770
6,986
* 125

*647
5,109
5,301
2,272
6,276
2,502
* 2,936
3,302
* 6,462
* 4,157
7,517

235,181 * 35,427

84,266

26,303

1918.

1917.

1919.

1918.

1917.

818,412
22,600
16,836
32,832
21,534
48,029
31,048
36,649
28,229
21,894
30,898
25,902

$20,910
11,294
21,108
22,369
23,889
17,262
20,725
12,936
10,534
19,326
19,257
22,987

$24,193
22,390
19,707
20,509
18,034
14,882
13,913
17,286
10,815
14,495
13,513
19,141

$16,448
14,962
12,157
27,188
22,486
20,465
27,850
25,509
35,829
38,224
37,335
20,983

$31,656
15,965
27,106
27,527
35,147
37,554
22,611
17,422
17,674
25,096
26,243
22,862

$32,419
21,743
24,816
25,810
20,306
21,158
16,415
14,350
14,117
8,033
9,356
26,658

Total. . . 334,863

222,597

208,878

299,436

306,863

1919.

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

* Excess of Exports.




1919.

56

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
SCHEDULE 53.—Commercial failures in New England.1
1919.

1917.

1918.

State.
Number.

Liabilities.

Number.

Liabilities.

Number.

Liabilities.

Maine
New Hampshire
Vermont
Massachusetts. .
Rhode Island . .
Connecticut

85
20
15
427
71
194

$717,703
165,279
594,239
7,402,927
999,877
2,932,462

135
38
36
739
124
272

$1,516,696
243,919
363,240
13,010,340
683,456
4,067,709

151
49
48
895
105
319

$1,424,353
380,768
422,831
10,777,064
503,488
8,642,146

Total . . .

812

12,812,487

1,344

19,885,360

1,567

22,150,650

1

Figures as reported by R. G. Dun & Co.

SCHEDULE 54.— Number of employees in the various departments — December 31, 1919,

and December 31, 1918.
Department.

1919.
Male.

Female.

1918.
Total.

Male.

Female.

BANK:

Total

133

TRANSIT:

New England
New England night force. ,
Clearing House
Clearing House night force
Government checks
Total

12
17
4
14
8
5
71
29
20

12
14
3
13
5
5
104
32
29
2
6
9
4
22
2
25
11
5
2
1

Officers
Federal Reserve Agent's .
Chief clerk's
Auditing
Adjustment
Expense
Money
Bookkeeping
Discount
Note teller's
Return teller's
Collection
Wire transfer . . .
Collateral
'
Chauffeur's
General
Watchman's
Purchasing agent's
Custodian of records
Legal
173

306

59 ;

122

7
4
21 i
2 !
24 i
10

3

119

124
25
20
11
7

65

Total.

187

139

258

34

15
49

116

BOND (FISCAL AGENT) :

Bond
Certificate of indebtedness
Total
GRAND TOTAL




62
317

132
2
134

128
8_
136
312

629

251

257

508

57

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON
CHART A.

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58

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.




CHART B.

A N N U A L R E P O R T O F F E D E R A L R E S E R V E BANK O F B O S T O N .

59

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60

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

CHART I).

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62

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

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ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.




CHART G.

63

64

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.




CHART H.

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ANNUAL REPORT OF FEDERAL llESERVE BANK OF BOSTON.

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06

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

150




THE FOLLOWING EXHIBITS WERE PREPARED
BY THE FEDERAL RESERVE BOARD
FOR INSERTION IN THIS REPORT




68

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
EXHIBIT A.—Movement of principal earning assets of the Federal Reserve Bank
of Boston during the calendar year 1919.
[In thousands of dollars.]

Date.

Discounted
paper
Other
secured
disby United counted
States
paper.
war
obligations.

January 3 . $120,775
121,954
January 10 .
118,394
January 17 .
118,034
January 24 .
118,082
January 31 .
133,374
February 7 .
146,403
February 14 .
138,158
February 20 .
139,841
February 28 .
143,801
March 7
144,517
March 14
136,864
March 21
148,867
March 28
148,631
April 4
151,733
April 11
148,618
April 18
157,068
April 25
158,981
May 2 .
145,668
May 9 .
152,150
May 16 .
144,102
May 23 .
146,191
May 29
133,197
June 6
145,205
June 13
143,557
June 20
144,720
June 27
143,591
July 3
138,677
July 11
130,820
July 18 . . . .
134,001
July 25
137,720
August 1 •..
128,136
August 8 . . .
111,748
August 15 . .
107,163
August 22 . .
107,744
August 29 . .
112,074
September 5
108,671
September 12
115,900
September 19
123,851
September 26
122,745
October 3 . .
120,944
October 10 . .
121,104
October 17 ..
109,146
October 24 . .
110,735
October 31 . .
127,564
November 7
130,236
November 14
127,078
November 21
126,192
November 28
105,868
December 5
128,055
December 12
134,324
December 19
138,206
December 26




1 +2

$8,419 $129,194
9,035 130,989
7,957 126,351
8,744 126,778
7,774 125,856
7,844 141,218
7,318
153,721
7,831
145,989
6,361
146,202
6,206 150,007
5,245 149,762
5,085 141,949
5,053 153,920
4,849 153,480
5,564 157,297
5,864
154,482
5,376 162,444
4,576 163,557
4,499
150,167
4,966
157,116
5,199
149,301
5,488 151,679
4,992 138,189
4,869 150,074
5,155
148,712
10,454 155,174
9,576 153,167
7,455 146,222
6,910
137,730
6,570 140,571
6,986 144,706
8,276 136,412
8,433 120,181
8,517
115,680
7,948 115,692
7,441
119,515
7,508 116,179
7,895 113,795
9,451
133,302
9,080 131,825
10,456 131,400
12,877 133,981
11,641 120,787
10,775 121,510
13,549 141,113
28,715 158,951
32,763 159,841
39,236 165,428
39,870 145,738
38,889 166,944
49,559 183,883
56,630 194,836

Per
cent.
1--3

Total bills
Bills
United
bought discounted
States
and
in open
securities.
bought.
market.

Total
earning
assets.

$9,521
9,521
10,264
9,264
9,954
9,954
10,954
11,954
12,954
12,954
14,954
14,954
14,954
15,954
15,956
16,955
17,255
17,455
17,455
17,455
17,472
17,471
18,484
17,485
17,485
17,485
17,484
17,484
21,993
21,993
21,993
22,093
21,989
21,989
21,989
21,988
22,019
21,984
21,984
22,278
23,710
22,214
22,585
22,102
21,979
22,470
22,988
23,101
22,620
22,291
22,187
22,200

$151,253
1.54,199
151,969
154,130
155,591
166,760
175,888
169,976
168,397
173,354
174,532
167,475
184,299
176,586
181,285
177,839
189,393
194,192
181,554
189,775
182,632
183,823
174,106
186,401
185,253
190,839
189,891
186,426
183,168
189,535
193,424
185,367
167,354
173,425
183,436
187,833
183,149
190,058
198,249
195,778
200,990
202,273
189,757
192,729
225,714
223,490
233,384
221,877
204,624
231,942
220,432
233,542

93.5 $12,538
93.1
13,689
93.7
15,354
93.1
18,088
93.8
19,781
94.4
15,588
95 2
11,213
94'6
12,033
95.6
9,241
95.9
10,393
96.5
9,816
96.4
10,572
96.7
15,425
96.8
7,152
96.5
8,032
96.2
6,402
96.7
9,694
97.2
13,180
97.0
13,932
96.8
15,204
96.5
15,859
96.4
14,673
96.4
17,433
96.7
18,842
96.5
19,056
93.2
18,180
93.7
19,240
94.8
22,720
94.9
23,445
95.3
26,971
95.1
26,725
93.9
26,862
92.3
25,184
92.6
35,756
93.1
45,755
93.8
46,330
93.5
44,951
101.8 44,279
92.8
42,963
93.1
41,675
92.0
45,880
90.4
46,078
90.4
46,385
91.1
49,117
90.4
62,622
81.9
42,069
79.5
50,555
76.2
33,348
72.6
36,266
76.7
42,707
73.0
14,412
70.9
16,506

$141,732
144,678
141,705
144,866
145,637
156,806
164,934
158,022
155,443
160,400
159,578
152,521
169,345
160,632
165,329
160,884
172,138
176,737
164,099
172,320
165,160
166,352
155,622
168,916
167,768
173,354
172,407
168,942
161,175
167,542
171,431
163,274
145,365
151,436
161,447
165,845
161,130
168,074
176,265
173,500
177,280
180,059
167,172
170,762
203,735
201,020
210,396
198,776
182,004
209,651
198,295
211,342

69

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

FEDERALRESERVE BANK OF BOSTON
MO/EMEli T OF EARNING ASSETS
DURING CALENDAR YEAR 1919.
so

to

2S
O

I
50
25
0

UMITED STATES SECURITIES.

75

50
25
0
ACCEPTANCES BOUGHT.

75
SO
25
0

GO

IO0
SO

SO
60

60

40

40

20

2O

0

0

PERCENTAGE OrWARPAPER TO TOTAL DISCOUNTS.

TOTAL BILLS DISCOUNTED, >D; AND WAR PAPER,

250
225

250
225
200
175

TOTAL EARNING ASSETS.
JAN\rEB\MCH\APRL\MAY\JUNEyUW\AU6.\SEPT\OCT.\NOV. PEC.




70

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
EXHIBIT B.—Movement of gold and cash reserves, Federal Reserve note and net
deposit liabilities, and the reserve percentage of the Federal Reserve Bank
of Boston during the calendar year 1919.
[In thousands of dollars, i. e., 000 omitted.]

Date.

Gold
reserves.

Total cash
reserves.

January 3 . .
January 10 . .
January 17 . .
January 24 . .
January 31
February 7
February 14yr
February 20
February 28
March 7. . . .
March 1 4 . . . .
March 21
March 28. . . .
April 4
April 11
April 18
April 25 . . . .
May 2
May 9
May 16
May 23
May 29
June 6
June 13
June 20 . , .
June 27
July 3
July 11
July 18
July 25 . . . .
August 1 . . .
August 8 . . .
August 15 . . .
August 22 . . .
August 29 . . .
September 5
September 12
September 19
September 26
October 3 . . .
October 1 0 . . .
October 1 7 . . .
October 2 4 . . .
October 3 1 . . .
November 7
November 14
November 21
November 28
December 5
December 12
December 19
December 26

$99,045
109,897
102,573
113,691
110,461
105,110
109,284
110,338
118,757
112,761
107,445
102,359
116,574
107,533
121,455
116,303
112,610
103,608
111,566
124,615
113,546
122,771
112,397
115,796
117,509
108,533
105,428
130,114
121,902
130,336
128,116
136,890
159,326
159,581
155,777
149,489
154,490
123,923
142,086
146,072
159,890
160,841
171,687
167,466
145,153
144,731
132,430
149,821
163,609
140,845
152,070
152,865

$101,733
114,192
106,145
117,546
114,625
110,166
114,533
115,988
124,637
119,089
114,011
108,693
122,884
113,709
127,537
122,674
118,760
111,560
118,817
132,052
121,262
130,127
119,481
122,855
124,917
115,574
111,953
136,396
128,433
137,841
136,378
145,614
168,146
167,744
163,444
156,502
161,064
130,699
148,564
152,014
165,301
166,342
177,191
173,043
150,860
149,882
137,538
154,371 :
168,144
144,760 ;
155,795
156,103 i




Federal
Reserve
n tes
in actual
circulation.

$160,506
159,053
148,985
148,332
149,565
152,479
155,884
158,190
159,552
160,876
163,142
165,338
166,874
169,609
171,265
174,092
177,737
176,931
176,024
171,595
169,647
172,171
173,771
172,632
172,757
176,159
182,631
181,787
178,961
180,481
183,544
189,597
191,077
195,600
198,967
203,986
205,316
205,735
207,829
211,341
213,067
215,092
213,903
212,096
215,598
218,358
216,914
220,828
223,073
226,737
238,211
246,455

Net
deposits.

$76,556
93,023
92,271
105,434
102,241
105,061
114,730
107,459
112,578
110,217
102,736
87,414
116,537
96,107
112,328
100,522
103,440
102,033
97,620
123,225
107,321
115,012
92,962
109,650
109,972
102,438
91,532
113,275
104,804
117,342
115,188
108,807
111,595
112,448
115,481
107,846
106,661
82,704
106,667
104,085
120,992
121,101
120,271
120,792
126,682
120,829
119,357
120,806
115,996 j
115,567
103,715
108,572

(3 + 4.)

$237,062
252,076
241,256
253,766
251,806
257,540
270,614
265,649
272,130
271,093
265,878
252,752
283,411
265,716
283,593
274,614
281,177
278,964
273,644
294,820
276,968
287,183
266,733
282,282
282,729
278,597
274,163
295,062
283,765
297,823
298,732
298,404
302,672
308,048
314,448
311,832
311,977
288,439
314,496
315,426
334,059
336,193 i
334,174 i
332,888 1
342,280 j
339,187
336,271
341,634
339,069 1
342,304
341,926
355,027

Ratio of cash reserves
to net deposit and
Federal Reserve note
liabilities combined.

42.9
45.3
44.0
46.3
45.5
42.8
42.3
43.7
45.8
43.9
42.9
43.0
43.4
42.8
45.0
44.7
42.2
40.0
43.4
44.8
43.8
45.3
44.8
43.5
44.2
41.5
40.8
46.2
45.3
46.3
45.7
48.8
55.6
54.5
52.0
50.2
51.6
45.3
47.2
48.2
49.5
49.5
53.0
52.0
44.1
44.2
40.9
45.2
49.6
42.3
45.6
44.0

71

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

5

FEPERALRESERVE BANKOFBOSTON
NET DEPOSIT LIABILITY,
F.R. NOTE CIRCULATION,
CASH RESERVES. AHP RESERVE RATIO. 1919.

S3

i

70
60
SO
40
30
20
10
O

PO
60
/

SO
40
30
2O
10
0

V

FtE5ERYE RATIO, (PERCENTA6E0FC+L).

SO
F.R. MOTE CIRCULATION

O

400

4O0

3S0

3S0

300

300

ZSO

ZSO

200
ISO
100

SO
DEPOSITAHDFR. NOTEUABlLlTIES/t, A/YD TOTAL RESERVES, 'C
JAN. FEB. MCHAPRL MAY' JUNE JULY AUG. SEPT. OCT. /YOK DEC.