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Seventh Annual Report of the Federal Reserve Bank of Boston for the year ended °g December 31, 1921 'Boston, <z3XVassachusetts °g '' THE FEDERAL RESERVE BANK OF BOSTON SHOWING FACADE ON PEARL STREET SEVENTH ANNUAL REPORT — OF THE — Federal Reserve Bank of Boston For the year ended December 31, 1921 BOSTON, MASSACHUSETTS LKTTKK OF TRAJfSMITTAL BOSTON, MASS., February 9. 1922. SIR : I have the honor to submit herewith the Seventh Annual Report of the Federal Reserve Bank of Boston covering the operations of that bank for the period from January 1, 1921. to December 31, 1921. Respectfully yours, FREDERIC H. CURTISS, Chairman and Federal Reserve HON. W. P. G. HARDING. Governor, Federal Reserve Board. Washington, D. C. Agent. TABLE OF CONTENTS Page Officers and Directors Introduction Review of Industrial Conditions Review of Banking Conditions Statement of Condition Income and Disbursements Discount and Local Money Rates Loan and Discount Operations Open Market Operations Bankers' Acceptances United States Securities Reserves Currency Transactions Check Transactions Time Collections Fiscal Agency Operations Internal Organization The New Bank Building Conclusion 5 7 9 11 13 13 13 15 15 16 17 17 17 18 18 18 19 19 20 APPENDIX SCHEDULES 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Comparative statement of condition 23 Earnings and expenses 24 Profit and loss account 25 Movement of Principal Asset and Liability Items During 1921, Boston. . . . 26-27 Volume of Paper Discounted and Bought 28 Statement of aggregate earning assets, showing holdings, earnings and average rates, by months 29 Loans, rediscounts, and member banks accommodated, by states 30 Purchases from and rediscounts for other Federal Reserve Banks 31 Open market purchases of bankers' acceptances by classes 31 Currency receipts from and payments to member and non-member banks.. 32 Movement of currency 33 Volume of currency handled in the sorting division 34 Inter-district movement of Federal Reserve notes 34 Coin transactions of the Federal Reserve Bank of Boston for the year ending December 31, 1921 34 Amount of Federal Reserve Bank notes, Federal Reserve Bank of Boston, received from the Comptroller, redeemed and destroyed, November 16, 1914, to December 31, 1921, inclusive; and amounts actually outstanding, held by the bank, in actual circulation, deposited with the Treasurer of the United States to redeem circulation, and net amount of bank's liability, December 31, 1921 35 New currency received by the Federal Reserve Bank of Boston and by the national banks in the First Federal Reserve District 35 3 4 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. Page 17. 18. 19. 20. Unfit currency forwarded to the Treasurer of the United States for redemption 35 Comparative statement of Federal Reserve Agent 36 Federal Reserve Notes issued and retired by Federal Reserve Agent, 1921... 37 Amount of Federal Reserve Notes issued to the Federal Reserve Bank of Boston by the Federal Reserve Agent, amount retired and outstanding, and amount of collateral held by the Federal Reserve Agent against notes outstanding 38 21. Reserve position on the first of each month, 1921 38 22. Gold Settlements Fund transactions, 1921 39 23. Comparison of loans to and reserve deposits of Boston and country banks at the Federal Reserve Bank of Boston 40 24. Comparison of items reported by member banks in selected cities on the first Wednesday of each month, 1921 41 25. Debits to depositors' accounts in the Clearing House banks in the larger cities of this district 42 '26. Acceptance liability of all member banks in Federal Reserve District No. 1 42 27. Acceptance liability of all banks in Federal Reserve District No. 1 43 •28. Classes of securities held by Custody Department December 31, 1921 43 29. Volume of securities handled by Custody Department 43 30. Operations of Federal Reserve Clearing System 44 31. Number of time items received for collection and amounts collected 45 32. Treasury certificates of indebtedness redeemed from January 1, 1921,to December 31, 1921 46 33. Subscriptions during the year 1921 to treasury certificates of indebtedness and treasury notes by states 46 34. Treasury certificates of indebtedness and treasury notes issued in 1921; subscriptions, allotments and method of payment 47 35. Deposits in duly qualified and designated depositary banks 48 36. Coupon interest on United States obligations paid by the Federal Reserve Bank of Boston as fiscal agent of the United States 48 37. State member banks as of December 31, 1921 49 38. Change in membership of national banks, — 1921 49 39. Member and non-member eligible state banks compared 50 40. Member banks authorized to accept drafts and bills of exchange up to 100 per cent, of their capital and surplus 50 41. Member banks accepting drafts and bills of exchange in amounts not to exceed 50 per cent of their capital and surplus • 51 42. Non-member accepting banks and other acceptors in this district 51 43. Banks authorized to exercise fiduciary powers under the Federal Reserve Act _ 52-53-54 44. Sales of treasury savings stamps and certificates 55 45. Commercial failures in the First District and in New England 55 46. Discount rates, Federal Reserve Bank of Boston, 1917-1921 56 47. Money rates in Boston, 1921 57 48. Number of officers and employees classified by departmental functions, December 31, 1921, and December 31, 1920 58 CHARTS. A. Monthly Average Reserves, Loan, Circulation and Deposits B. Federal Reserve Bank of Boston, Movement of Earning Assets During 1920 and 1921 C. Federal Reserve Bank of Boston, Deposits, F. R. Note Circulation, Cash Reserves and Reserve Ratios, 1920-1921. D. Boston Money Market .' E. Monthly Average Reserve Ratios F. Analysis of Bills Held G. Classification of Bills Held H. Analysis of Loans to Member Banks I. Analysis of Member Bank Reserve Deposits J. Rate of Manufacturing Activity in New England K. Net Sales — Twenty-six New England Department Stores — 1920-1921... 59 60 61 62 62 63 63 64 64 65 65 FEDERAL RESERVE BANK OF BOSTON OFFICERS AND DIRECTORS As of December 31, 1921 Officers CHARLES A. MORSS, Governor. CHESTER C. BULLEN, Deputy Governor. WILLIAM W. PADDOCK, Deputy Governor. I FREDERIC Agent. H. CURTISS, Federal Reserve CHARLES F. GETTEMY, Assistant Federal Reserve Agent. WILLIAM WILLETT, Cashier. HARRY F. CURRIER, Auditor. KRICKEL K. CARRICK, Secretary. FRANK W. CHASE, Assistant Cashier. ELLIS G. FIULT, 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. HEAL, A 2 F. S. CHAMBERLAIN, Term Expires Dec. 31 President, Second National Bank, Boston, Mass. Cashier, New Britain National Bank, New Britain, Ct. 1922 A 3 EDWARD S. KENNARD, Cashier, Rumford National Bank, Rumford, Me. B 1 PHILIP R. ALLEN, Paper Manufacturer, B 2 EDMUND R. MORSE, Treasurer, Vermont Marble Co., Vice-President, Bird & Sons, 1923 1924 E. Walpole, Mass. 1923 Proctor, Vt. 1922 B 3 CHAS. G. WASHBURN, Director, Wire Goods Co., Worcester, Mass. 1924 C FREDERIC FI. CURTISS, Chairman, Boston, Mass. 1923 C ALLEN HOLLIS, Deputy-Chairman, Lawyer, Concord, N. FI. 1924 C JESSE H. METCALF, President, Wanskuck Co., Providence, R. F 1922 ARTHUR H. WEED, Counsel. Member of Advisory Council PHILIP STOCKTON, President, Old Colony Trust Company SEVENTH ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF BOSTON INTRODUCTION It is probably true that a change in the trend of the business cycle is usually felt in the field of manufacturing some months before business and trade as a whole are affected. New England is essentially dependent upon manufactures for its commercial life. As New England therefore was apparently the first section of the country in the spring of 1920 to reflect the beginnings of the general recession of the industrial tide which was to leave in its wake many wrecks of business prestige and fortunes, resulting from a lifetime of endeavor, so it was but natural that this district should respond sooner than other parts of the United States to those influences which make for a quickening of activity. New England accordingly experienced in 1921 a steady revival from the depressing conditions which prevailed during the latter part of the previous year; this was felt in almost all lines of industry,—the machinery and metal trades being notable exceptions,—the improvement in the textile industry being especially marked. Margins of profit, it is true, have not been particularly satisfactory, for fluctuations in the cost of raw materials and the high cost of labor, fuel, and transportation have continued to present many difficult problems to the manufacturer; nevertheless the volume of production has, for the most part, shown a tendency to increase since the beginning of the year and business has, on the whole, been fairly good throughout the twelve months, being reflected both in the volume and value of retail trade transactions which register the extent of actual distribution of finished goods to the ultimate consumer. Mercantile and industrial buying at the close of the year was, nevertheless, still cautious in comparison with former normal tendencies and with but few commitments of a size and duration such as has been customary in past periods of business activity. The general credit situation in the Boston district improved materially during most of 1921, and member banks on the whole were able to do business with a steadily decreasing degree of recourse to the Reserve Bank for rediscounts. This condition was due in part to lower commodity prices and a smaller volume of business in the aggregate than during 1920. Member 8 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. banks were borrowing an average of $66,000,000 l from the Federal Reserve Bank of Boston in December, as contrasted with $144,000,000 in January, borrowings at the close of the year being less than for any period since 1918. This liquidation was due to reductions in loans by the Boston banks, which with one or two exceptions, have at times entirely gone out of debt with the Reserve Bank. The country banks,2 on the other hand, only slightly reduced the volume of their indebtedness during the year to the Reserve Bank, a fact partly due to the continued purchase of United States securities for investments. The general situation had become such in this district by the first part of April that the directors of the Federal Reserve Bank of Boston decided on the 14th of that month to reduce discount rates 3 from 7 per cent, to 6 per cent, on all classes of loans, and rates were further reduced from time to time to 4J4 per cent., which was the established rate as the year ended. During the year the reserve position of the Boston Bank was almost continuously the highest in the System, and it was, therefore, enabled to assist other sections of the country through rediscounts for and purchases from, other Federal Reserve Banks. Indeed, rediscounts 4 were carried during the entire year, except in March, for other Federal Reserve Banks, the most part for those in the agricultural districts where liquidation had proceeded slowly. It is interesting to note that, while during this period of unusual liquidation, commercial failures 5 have been many,—more in fact than any year on record with the one exception of 1915,—there have been no failures of member banks in this district. The general credit situation has been such as to warrant the closest scrutiny of all paper offered for rediscount, as well as to call for the closest co-operation between the officials of the member banks and those of the Reserve Bank. Discount operations x during the year, while decreasing in volume as the year advanced, were sufficient to pay all operating expenses6 and six per cent, dividends to member banks, to enable the setting aside of $489,000 for depreciation and of $772,324.46 to surplus, leaving the sum of $3,035,920.15 for payment to the United States Government as a franchise tax. The reduced volume of commercial business in the district has brought about an accumulation of surplus funds seeking investment in shorttime securities. This has made a very active demand for bankers' acceptances and certificates of indebtedness. In the case of the former this outside demand was reflected in the rather small volume of these securities carried during the year by the Federal Reserve Bank l while the demand for Treasury certificates resulted in a large over-subscription of 2 'See Schedule No. 6 and Charts A, B, F and G. See Schedule No. 23 and Chart H. 3 4 See Schedule No. 46 and Chart D. See Schedule No. 8 and Chart F. 5 6 See Schedule No. 45. See Schedule No. 2. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 9 every issue of these securities as they have been offered from time to time by the government. The operating expenses l of the bank, while increased by the bank's absorption of practically the entire expense of the fiscal agency operations after the first of July, have not materially increased over the previous year. On the other hand, the volume of earnings l has steadily grown less because of decreasing loans, until as the year ended, daily operations showed but a small margin of profit. REVIEW OF INDUSTRIAL CONDITIONS New England was one of the first sections of the country to feel the downward trend of business which started in 1920. During the closing part of that year and the first of 1921, the leading industries in this district,—woolen and cotton textiles, boots, shoes and leather products,—• were operating at a fraction of their maximum capacity. New England woolen mills were running at approximately 25 per cent, of capacity during December, 1920, cotton mills at 45 per cent, and boot and shoe factories at 35 per cent., while the production of paper had declined to substantially two-thirds of the monthly output of the earlier months of 1920. Building construction was at its lowest ebb during January, 1921, due to the combined influences of normal winter slackness and business depression. Retail trade was the only bright spot in the situation. The volume of goods sold by merchants during the Christmas season of 1920 was larger than in any previous month of that year and larger even than during the holiday season in 1919. Nevertheless unemployment was large,—in fact, probably more people were unemployed during the winter of 1920-1921 than during the depression in 1914 and 1915, following the beginning of the war. A considerable change in the business situation took place in this district in the spring of 1921. The boot and shoe industry, which had been one of the first to curtail production during 1920, was also one of the first to improve; almost simultaneously both woolen and cotton mills increased their output. The closing months of 1920 proved to be the poorest for each of these three industries and the spring and summer months of 1921 were months of marked improvement, except for the paper industry, which continued to feel the effects of the depression until June. Meantime, building operations experienced the customary normal increase in the spring and summer; although the volume of building was not large the trend was upward. Retail trade reports from Boston department stores showed that not only was the physical volume of merchandise being sold during the spring months larger than during the same period of either of the two preceding years, but the dollar value 1 See Schedule No. 2. 10 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. of the net sales was also larger; stores situated in other New England cities did not show quite as good results on the whole. The dollar values of their sales during the spring months of 1921 were generally less than for the corresponding months of 1920, although, considering the decline in retail prices in the interim, there is no doubt that country stores also sold more goods during the spring of this past year than during 1920.1 Coincident with the improvement in New England's leading industries during the spring and summer of 1921, the total amount of unemployment in the district became less. There was one notable exception to the general trend in this respect; namely, in the metal and machinery industry. During the early summer months a distinct change occurred in one of the most important phases of the business situation. Commodity prices, not only in this district, but throughout the United States and many of the most important foreign- nations, were declining throughout the latter part of 1920 and the early part of 1921. This movement ended, at least for the time being, almost simultaneously throughout the world at the beginning of the summer. Though the period of falling prices had lasted slightly over a year, the decline was the most drastic that this country had ever experienced either in peace or war time. The index of the United States Department of Labor, which combines the wholesale prices of over 300 commodities, had declined 45 per cent, from its peak by July, 1921. It was at that time, however, still 48 per cent, above the 1913 average level. The cost of living in Massachusetts likewise ceased declining at approximately the same time. It did not rise as much as wholesale prices, and consequently the decline was not as severe. The Massachusetts Commission on the Necessaries of Life reported that the cost of living in Massachusetts during the summer of 1921 was approximately 20 per cent, less than the year before and 60 per cent, above that of 1913. The turn in the trend of commodity prices has since proved to have practically coincided with the change in the trend of industrial activity throughout the United States. Business and industrial conditions in New England at the close of 1921 were decidedly better than at the beginning. Textile mills were running at approximately 80 per cent, of capacity, having nearly twice the output of the corresponding months a year earlier. Boot and shoe factories were somewhat quiet, but this was largely accounted for by the usual seasonal slackening which occurs when the bulk of the run of spring shoes has been completed and before the run of fall shoes has been started. Nevertheless, operations in the shoe industry during December, 1921, were considerably larger than during December, 1920. New England shoe factories were not running at as high a degree of maximum capacity at the close of the year as were factories in New !See Chart K. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 11 York State and the Middle West. One of the main reasons for the curtailment in New England was the difficulty arising from lack of wage adjustments. Although several strikes were in progress in this industry in New England, no general reduction was made before the first of 1922. The lowest period of paper production occurred in the summer. There was a very marked improvement during the fall, and operations were at a rate of between 70 and 80 per cent, of capacity at the close of the year. Metal trades continued to be more depressed than any of the large New England industries, and in fact it was not until early autumn that even a slight improvement occurred. Even at the close of the year, the immediate prospects were not bright for the metal trades. The amount of building under way during the closing months of the year did not show the usual seasonal decline in 1921, indicating that probably the change in the trend of volume of building had occurred and that 1922 may witness larger operations. Christmas trade in the department stores during December was larger than in the corresponding months of the two preceding years and undoubtedly made new records for many stores, despite the fact that retail prices were substantially lower than during the Christmas season of 1920. The volume of failures 1 continued large throughout 1921 and in New England, according to R. G. Dun & Company, the number during December was the largest for any month of the year. The amount of unemployment, which had been decreasing throughout the spring, summer and fall, naturally showed a slight increase during the closing months of the year. It is doubtful, however, if this was more than normal. When New England's leading industries were curtailing operations in 1920, business throughout the country was generally good and showed no alarming signs of an oncoming depression; but on the other hand, during the first half of 1921, while the more important industries in this district were rapidly increasing their output, business generally was curtailing. At the close of the year, business and industrial conditions in New England were generally good.2 REVIEW OF BANKING CONDITIONS The banking situation has materially improved during the past twelve months. With such a severe readjustment of business conditions as local industries have experienced during the past two years, it is greatly to the credit of the member banks of the New England district that they have been able to handle themselves through the crisis without 1 See Schedule No. 45. 2 See Chart J. 12 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. a single failure among them. The losses from mercantile embarrassments during the period have been heavy and there are still many slow credits in bank loan accounts on which losses will ultimately have to be taken; on the other hand bank earnings have been exceptionally good and increasing values in securities accounts have helped out considerably. Generally speaking, slow loans, the so-called frozen credits, have shown steady improvement during the year, and in many cases bank loans have been funded into long-time securities which have found a ready market with investors. Apparently, the Boston banks had to bear the brunt of the credit readjustment inasmuch as frozen or slow credits existed to a far less extent in the banks outside of Boston, except in some agricultural sections. There are several reasons for this. The business of the large Boston banks is naturally more national in scope than is that of the country banks,—indeed in several cases it is international,— and therefore these banks have been affected not merely by local credit conditions but by those which have prevailed elsewhere in the country, and even abroad. Besides, Boston banks frequently increased loans to their commercial customers,— loans used to pay off obligations placed through brokers with outside banks. The resources of member banks as of January 4, 1922, as compared with those of the corresponding date a year ago (January 7, 1921), show, in the case of Boston banks, a decrease of some 103 millions in commercial loans and investments other than government securities, a decrease of 35 millions in loans secured by United States government obligations, an increase of some 13 millions in loans secured by stocks and bonds, and an increase of some 5 millions in United States obligations owned, A somewhat similar trend is found in a comparison of resources of reporting banks in the larger New England cities; on the other hand, the demand deposits of the reporting banks outside of Boston have shown relatively greater shrinkage than those of Boston banks, although both groups show a decline. Savings and time deposits have steadily increased both in Boston banks and those outside. Savings deposits both in mutual savings banks and trust companies in December, 1921, showed a satisfactory increase over December, 1920, —a rather surprising result wThen all conditions are taken into consideration. The improvement in the bond market has been of material benefit in strengthening the financial position of savings institutions. On July 31 a run was started on the Boston Five Cent Savings Bank, through the circulation of false rumors in certain sections of the city populated largely by foreign born. This institution was fortunately one of the strongest savings banks in New England and although the run continued for three days and assumed large proportions, the bank, because of its heavy cash resources, was able to pay off every demand made upon it without invoking the provision of its by-laws allowed by the statutes of the ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 13 State, whereby 90 days' notice of an intended withdrawal of deposits may be required. There was marked evidence that a substantial volume of the deposits withdrawn were reinvested in postal savings. STATEMENT OF CONDITION1 A comparison of the balance sheets for December 31, 1920, and December 31, 1921, shows the results of liquidation that have occurred during the year. Earning assets, it will be seen, have been reduced from 216 millions to 84 millions; Federal Reserve Notes from 289 millions to 203 millions, and the cash reserves have been correspondingly increased from 218 millions to 252 millions, the increase being almost entirely in gold. During the year member banks' reserve deposits have fallen from 115 millions to 111 millions. INCOME AND DISBURSEMENTS2 The earnings for the year 1921 reflect the heavy decrease in discount operations and the reduction of rediscount rates. While total earnings in 1920 were 12 millions the total earnings for 1921 were reduced to about one-half, amounting to 7 millions. On the other hand, operating expenses have slightly increased, due in part to the bank's absorbing on July 1 the expenses of the United States Treasury fiscal operations and to an increase in the amount of transactions handled in most of the operating departments of the bank. It should be recognized that the volume of operations,—-number of items,—handled by such departments as the check, time collection and currency departments have little or no bearing on the discount or investment operations of the bank. These departments, as well as the departments associated with Fiscal Agency functions, not only yield no income but have been increasing in expense of operation as member banks avail themselves of the facilities which are offered by the Reserve Bank. Semi-annual dividends were paid on June 30, 1921, and December 31, 1921, at the rate of 6 per cent, per annum to stockholding member banks. After setting aside $489,000 for depreciation and transferring $772,000 to surplus account, a balance of 3 millions were paid to the United States Government as a franchise tax. The ratio of net earnings for the year to average paid-in capital was 54.13 per cent., to average paid-in capital and surplus 17.92 per cent., and to average paid-in capital, surplus and member banks' reserve deposits 3.20 per cent. DISCOUNT AND LOCAL MONEY RATES 3 Early in the year liquidation had gone so far in this district and the reserve percentage of the bank had become so high that the directors 1 2 See Schedule No. 1 and Charts A and C. See'Schedules Nos. 2 and 3. 3 See Schedules Xos. 46 and 47 and Chart D. 14 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. discussed the advisability of a reduction in the discount rate. It was felt that the discount rate of 7 per cent, was regarded as an emergency rate, and that business was entitled to be told that the crisis had passed. Therefore, on April 14, the discount rate on all classes of loans was reduced to 6 per cent. This was the first reduction in discount rates by any of the Federal Reserve Banks since 1918. Beginning early in 1920, discount rates of the Federal Reserve Banks had been continuously increased until June, 1920, when the discount rates of four of the Federal Reserve Banks reached 7 per cent, and the other Federal Reserve Banks, 6 per cent. This action had been necessary in order to try to stem the tide of inflation which was running with such force, and also to prevent the reserve position of the Federal Reserve Banks from going below the legal minimum of 40 per cent, of cash reserves against combined deposit and Federal Reserve note liability. These high rates of 6 per cent, and 7 per cent, had been maintained since June, 1920, and the reduction in the discount rate of the Federal Reserve Bank of Boston from 7 per cent, to 6 per cent, was the first indication given to the business community by the Federal Reserve Banks that the crisis was passed and that easier conditions of credit had come about. Reductions in discount rates after this time in first one bank and then another were almost continuous until on November 4, 1921, discount rates were established in this bank at 4 ^ per cent, and in all the Federal Reserve Banks from 4 ^ per cent, to Sj4 per cent. The reduction of discount rates had little or no effect on the amounts of loans of Federal Reserve Banks and liquidation continued without interruption. It did, however, cause, very gradually, lower rates on commercial loans and was a great relief to the business community. The reduction in the discount rate charged customers by member banks on commercial loans, while steadily tending downward, has been very gradual, owing to the amount of slow or frozen credits, which, while decreasing in volume, are still comparatively large. Commercial loans in Boston at the beginning of the year averaged from 7 to 8 per cent., and as the year ended 5 to 5}4 per cent, were the going rates. Although, with but one or two exceptions, the large Boston banks have at times been out of debt to the Reserve Bank, they have been buying outside paper only to a limited extent. The country banks, as funds have accumulated, have invested them for the most part in Government securities, and here again the buying of outside paper has been in small volume. The purchase rates on bankers' acceptances have been changed from time to time, the policy having been continued of maintaining a purchase rate about }/g per cent, above the open market in order to protect dealers and investors and at the same time to discourage offerings of bills in any volume to the Federal Reserve Bank. Preferential rates have been maintained at times for bills of shorter ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 15 maturities. Open market rates for acceptances have fluctuated from 6X m January to 4 ^ in December, rates to dealers on advances being at the dealer's purchase rate. LOAN AND DISCOUNT OPERATIONSl Loans and discounts during the year have been materially reduced, the reduction in rediscount rates having had little or no influence on the volume of rediscounts offered by member banks. The character of the bank's loan has changed very little, the reduction in commercial loans being proportionate to the reduction in loans secured by United States government obligations. The Boston banks have reduced steadily their loans and rediscounts, and all, with but one or two exceptions, have at times gone out of debt to the bank during the year. On the other hand, the borrowings of the banks outside of Boston have shown relatively little change during the same period. On December 31, 1920, the bank held 2 95 millions of commercial loans and 78 millions of notes secured by government obligations. On December 31, 1921, it held 38 millions of commercial loans and 22 millions of notes secured by government obligations. The daily average loan3 for the year 1921 was 100 million as against 170 million in 1920. Apart from 11 millions of bankers' acceptances purchased from the Federal Reserve Bank of New York in January,4 practically no bankers' acceptances have been rediscounted, but have been purchased in open market operations. On the other hand rediscounts of member bank notes have been made by this Bank almost continuously throughout the year for Federal Reserve Banks in agricultural sections of the country. OPEN MARKET OPERATIONS5 During the past year, open market operations of this bank, that is, loans or investment operations other than discounts for member banks or other Federal Reserve Banks, have been almost exclusively for the purpose of assisting in broadening the discount market for bankers' acceptances, and United States certificates of indebtedness, and not for the purpose of increasing the bank's earnings. Toward the end of the year, however, with the rapid drop in its earning assets, this bank did enter the market and purchased Victory notes and certificates of indebtedness to a limited extent for its own investment account. The average daily holding of bills in 1921 was something over 9 millions as against almost 28 millions in 1920. During the year there has been a steadily increasing volume of shorttime investment money which has made a good demand for bankers' 1 See Schedules Nos. 4, 5, 7, 23 and Charts B, F, G and H. 2 See Schedule No. 1. 3 4 See Schedule No. 6. See Schedule No. 8. 6 See Schedules Nos. 4, 5, 6 and 9 and Charts B and G. 16 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. acceptances and United States Treasury certificates of indebtedness. In previous years the bank has had to support the acceptance market to quite an extent by going into the market and buying acceptances for its own account, while this year its investment has been largely limited to assisting dealers through short advances, in carrying their bill portfolios, these advances being made at the rate at which bills were purchased by them. It is hoped that ultimately there will be developed in Boston a call market similar to that existing in New York, which will assist in carrying acceptances and Treasury certificates for these bill brokers. The dealers' selling rate 1 for bankers' acceptances has fallen from 6)4 for prime bills in January to 4 ^ as the year ends. Savings banks, country banks, insurance companies, trustees, corporations and individuals have sought investment for their short-time funds in bankers' acceptances and certificates of indebtedness, and this has had a tendency to broaden the market and create a demand so steady that more dealers are entering the Boston market. The demand for Treasury certificates has also been very great, each new offering of the Treasury Department being largely over-subscribed. In past years the banks have carried allotments made them until the market could absorb the Treasury offerings, whereas this year these Government securities have gone direct to the investor and the Reserve Bank has been called upon to carry certificates on repurchase agreements for dealers rather than on rediscounts for banks. Demand for these certificates has been so keen that they have been selling most of the time at a slight premium. The ruling of the Board that six months bills drawn in connection with foreign transactions are eligible for purchase by the Federal Reserve Banks has brought some of this paper onto the market, but to no great volume, investors apparently preferring bills of shorter maturity. , BANKERS' ACCEPTANCES2 The volume of acceptances originating in the Boston district, while less than in other recent years, has kept up unusually well, especially so when the lower prices for commodities and general trade recession are taken into consideration. The bulk of acceptances made, so far as can be judged by the record of acceptances handled by the Reserve Bank was in connection with foreign trade. 3 The purchases of acceptances by the bank for investment during the past year were very limited. 4 With the exception of acceptances bought from the Federal Reserve Bank of New York in January, most of the holdings of the bank were on repurchase agreements from dealers. 1 2 See Schedule No. 47 and Chart D. See Schedules Nos. 26 and 27. 3 4 See Schedule No. 9. See Schedules Nos. 4, 5, 6 and 9, Charts B and G. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 17 UNITED STATES SECURITIES 1 The bank's investment in United States Government securities was reduced from 22 millions on December 31, 1920, to 11 millions on December 31, 1921.2 This reduction was due to the retiring by the government of 13 millions of Treasury certificates issued under the Pittman Act. Purchases of $900,000 of Victory notes and $1,300,000 of short-term Treasury certificates were made by the bank in December for investment. RESERVES3 The reserve ratio of the Boston bank was for most of the year higher than any of the other reserve banks, averaging for the last three months of the year close to 80 per cent. This was brought about through the reduction in the loan and in Federal Reserve Notes outstanding. The net increase in gold 4 from December 31, 1920, to December 31, 1921, was $31,000,000, the highest point reached being in August when it amounted to $266,000,000. CURRENCY TRANSACTIONS 5 The operations of the Currency Department while smaller in volume than last year have been large. The demand for currency, with the letdown in general business, has been less, but the work of counting, sorting and handling Federal Reserve notes as they have been retired from circulation has been unusually heavy. The clerical force of the Money Department therefore has been only slightly reduced. The volume of Federal Reserve notes in actual circulation has steadily decreased from 289 millions on December 31, 1920, to 203 millions on December 31, 1921. During the holiday season although the decline in the volume of Federal Reserve notes in circulation was not so marked, it still continued, the demand for currency for that period being largely met by paying out silver certificates and United States notes of small denominations, furnished by the Treasury Department, the government desiring again to place in circulation silver certificates withdrawn under the Pittman Act. Federal Reserve Bank notes; bank bills secured by United States Government securities have been reduced from 20 millions on December 31, 1920, to 6 millions on December 31, 1921,8 the Government having paid off and retired 13 millions of special 2 per cent, certificates issued in connection with the silver transactions of 1918, against which these bank notes had been issued. 1 2 See Schedules Nos. 4, 6 and Chart B. See Schedule No. 1. 4 See Schedules Nos. 4, 21 and Charts A, C. E. See Schedule No. 1. 5 6 See Schedules Nos. 10 to 17. See Schedule No. 48. 7 5 See Schedules Nos. 4 and 21 and Charts A and C. See Schedule No. 1. 3 18 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. CHECK TRANSACTIONS 1 The operations of the transit department steadily increase in volume each year regardless of general business conditions. While the total amount in dollars of the checks handled has been somewhat less than last year, the physical number is considerably larger. In 1921 this department handled 50,829,717 checks of an aggregate amount of $11,651,344,832.08 as compared with 43,821,535 items in 1920 with an aggregate of $14,727,346,341.28. The total clerical force was increased from 204 to 209. The per item cost was reduced from .0085 in 1920 to .0076 in 1921. There are 133 banks in New England sending their checks direct to this bank for collection as against 126 in 1920, while 203 member banks in other Federal Reserve districts are sending checks direct to the bank under the direct routing system against 118 in 1920. TIME COLLECTIONS2 The collection department, that is the department handling time collections such as notes, drafts, acceptances, coupons, etc., has had a much greater growth than any other department in the bank, the total number of items increasing from 134,787 in 1920 to 319,163 in 1921, the largest increase being in coupons on industrial and railroad bonds. The number of member banks which utilized the collection facilities of the bank was 195 as compared with 131 banks in 1920. About 75 per cent, of the items handled were collected at par for the depositing banks. The clerical force in this department has increased from 24 in 1920 to 48 in 1921. FISCAL AGENCY OPERATIONS3 The total volume of Treasury securities allotted during the year through the Reserve Bank of Boston was 281 millions, an amount approximately the same as in 1920. Periodical offerings of securities were made by the Secretary of the Treasury as in past years, but whereas in 1920 only loan and tax certificates of short maturities were put out, in 1921 there were two offerings of three-year notes. A much larger proportion of payments for securities was made by banks through credits on their books instead of cash than heretofore, and the average time was longer before these deposits were withdrawn into the Reserve Bank by the Treasury Department. The character of collateral deposited by banks against these government deposits varied little over previous years, the only material change being a smaller amount of commercial notes. Whereas in 1920 certificates did not have a ready market in this district and banks had been urged to subscribe, and several times allotments made to this bank were not filled, the investment demand in 1921 was 1 2 3 See Schedule No. 30. See Schedule No. 31. See Schedules Nos. 32 to 36. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 19 so great and certificate rates so attractive that every offering brought heavy over-subscriptions, and it has been a problem to make allotments fairly and impartially. During the year government certificates and notes have been selling at a premium and the market has been so steady and broad that dealers have traded in them. The sales of Treasury Savings Stamps have fallen off considerably, the total for the year being about $1,300,000,—less than one-half the sales of 1920. The Bond Department, which handles deliveries, exchanges, transfers, coupons, etc., of government securities, has been called upon to handle a volume of items about one-third less than last year, and its operating staff has been reduced therefore by 73 clerks.1 On the other hand, while in past years the bank has been reimbursed by the government for the expenses of fiscal agency operations, since July 1, 1921, it has been obliged to absorb them. INTERNAL ORGANIZATION1 During the year there has been no change in the official staff or the Board of Directors; the officers and directors whose terms expired having been re-appointed and re-elected, including the member of the Advisory Council. On the other hand the number of officers and employees as a whole was reduced from 776 on December 31, 1920, to 734 on December 31, 1921. This reduction was made possible by a decrease in the volume of operations as well as by increased efficiency. THE NEW BANK BUILDING It was originally expected that the new bank building on Pearl, Franklin and Oliver Streets would be finished and ready for occupancy in September, 1921. On December 31, 1921, although certain portions of the building had been completed and certain departments of the bank had been transferred into it, there was still much to be done before the building would be entirely ready for occupancy, but it is expected that unless something unforeseen occurs the entire organization will be moved and settled in the new quarters by April 1, 1922. The delay in finishing the new building was due largely to labor conditions. In January, 1921, all the mechanics and laborers, failing to agree on a wage adjustment with a local employers' association, an association with which the supervising contractor was affiliated, stopped work and left the building. This strike continued until March 22 and from then on for several months it was impossible to obtain competent or adequate labor to carry on construction operations. But, on December 17, 1921, 1 See Schedule No. 48. 20 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. the auditing, bookkeeping and supply departments were transferred into the new building, the quarters formerly occupied by them at 20 Kilby Street being abandoned. CONCLUSION Unless there should occur a marked increase in general commercial business activity, evidence of which does not appear at the present time, the demand by member banks for rediscounts for commercial needs should continue to be very small, both on account of the reduced volume in general business and the lower range of commodity prices. On the other hand, if the United States Treasury decided to enter into heavy long-term refunding operations it is probable that, pending the distribution of such securities, the member banks would look to the Reserve Bank to assist them in carrying the new government obligations. Unless loans of this latter class develop, the problem of earnings sufficient to meet current operating expenses, regardless of dividends to member banks on their stock holdings, must be faced by the Board of Directors. The general credit situation, while gradually improving, is nevertheless, in many cases, such as to warrant careful supervision of member banks. The volume of slow credits, while decreasing, continues very large and there are still heavy loans that will ultimately have to be charged off. APPENDIX SCHEDULES AND CHARTS 23 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. Comparative statement of condition. SCHEDULE 1. [000 omitted.] Dec. 31,1921. Dec. 31, 1920. Dec. 31, 1919 RESOURCES. S7.117 42,312 SI 1,800 40,116 241 87,959 34,351 9,586 Total gold held by b a n k . . . . Gold with Federal Reserve Agent. Gold redemption fund 49,429 159,910 27,746 52,157 134,747 18,796 51,896 73,511 26,342 Total gold reserves Legal tender notes, silver, etc. 237,085 14,675 205,700 11,816 151,749 4,037 251,700 217,516 155,786 21,533 37,638 13,149 78,225 95,143 20,678 124,529 63,510 18,649 Total bills on hand U. S. bonds and notes U. S. certificates of indebtedness: One-year certificates (Pittman Act) All other 72,320 1,488 194,046 544 206,688 539 8,450 1,368 21,436 83 21,436 369 Total earning assets Bank premises 5 per cent redemption fund against Federal Reserve Bank notes Un collected items All other resources 83,626 4,740 216,109 2,700 229,032 1,103 422 52,812 359 1,072 57,623 468 1,072 85,424 496 393,719 495.4S8 472,913 Gold and gold certificates Gold settlement fund—Federal Reserve Board . Gold with foreign agencies Total reserves. Bills discounted: Secured by U. S. Gov't obligations All other. Bills bought in open market Total resources. DPC. 31,1921 Dec. 31, 1920.Dec. 31, 1919. LIABILITIES. Capital paid in Surplus Deposits: Government Member bank—reserve account All other 87,936 16,483 S7.718 15,711 87,107 8,35!) 8,368 110,760 1.0S6 4,561 114,670 835 1,123 117,294 5,843 Total deposits Federal Reserve notes in actual circulation Federal Reserve bank notes in circulation—net liability Deferred availability items All other liabilities 120,214 202,535 6,277 39,502 772 120,066 288,780 20,353 41,762 1,098 124,260 244,093 20,912 67,194 988 393.719 495,488 472,913 Total liabilities Ratio of total reserves to deposit and Federal Reserve note liabilities combined 7s.0 Calculated on basis of net deposits and Federal Reserve notes in circulation. 44.51 24 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 2. Earnings and expenses. 1920. 1919. $6,007,117 515,192 415,931 $10,031,301 1,613,012 554,172 $6,003,252 1,077,691 369,457 13,778 16,644 41,783 32,985 27,836 19,347 6,968,662 12,273,253 7,497,583 135,500 905,811 31,648 35,233 461 118 200 9,263 8,436 57,218 1,200 116,600 781,904 20,988 7,207 315 •100 408 9,529 9,046 52,584 3,723 105,097 606,345 12,278 12,111 244 109 500 7,351 8,708 45,619 3,817 18,054 23,487 19,104 108,428 95,414 63,667 12,292 10,314 41,478 11,855 7,958 187,891 160,861 1921. EARNINGS:— Discounted bills Purchased bills United States securities. . . Transfers—net earnings . . . Deficient reserve penalties. Miscellaneous Total earnings'. CURRENT EXPENSES:— Salaries: Bank officers Clerical staff Special officers and watchmen All other Governors' conferences Federal Reserve Agents' conferences Federal Advisory Council Directors' meetings Traveling expenses1 Assessments for Federal Reserve Board expenses Legal fees Insurance (life, fidelity, casualty, workmen's compensation and general liability) Banking house: Taxes and fire insurance Light, heat, and power Repairs and alterations All other Rent, including light, heat and power and minor alterations Fire insurance—furniture and equipment Printing and stationery Telephone Telegraph Security shipments Currency and coin shipments Postage and expressage (other than on money and security shipments) Furniture and equipment Federal Reserve currency: Original cost, including shipping charges Cost of redemption, including shipping charges. . . . Taxes on Federal Reserve Bank note circulation.. . All other expenses Total current expenses. CURRENT N E T EARNINGS:— 53,4681 1,906 95,637 . 1,034 J 99,264 16,365 10,960 9,4361 106,907 73,844 ] 73,692 24,585 43,748 302,264 88,526 56,749 42,703 345,151 112,162 82,000 65,609 285,917 31,774 89,422 82,115 2,239,007 2,038,290 1,671,825 4,729,655 10,234,963 5,825,758 1 Other than those connected with Governors' and Agents' conferences and meetings of Directors and of the Advisory Council. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 3. Profit and loss account. Earnings Current expenses Current net earnings Additions to current net earnings: Amounts deducted from reserve for depreciation on U. S. bonds . . Assessments a /c expenses Federal Reserve Board previously charged to profit and loss All other Total additions Deductions from current net earnings: Depreciation allowances on bank premises All other Total deductions Net deductions from current net earnings Net earnings available for dividends, surplus, and franchise tax 1921. 1920. 1919. $6,968,662 2,239,007 $12,273,253 2,038,290 $7,497,583 1,671,825 4,729,655 10,234,963 5,825,758 43,681 3,894 38,666 29,248 47,575 67,914 489,000 1 Net additions. 28,162 2,151 38,666 9,711 495,877 30,313 48,377 448,302 37,601' 48,377 4,281,353 10,272,564 5,777,381 473,109 772,324 3,035,920 447,266 7,351,799 2,473,499 414,447 5,362,934 6,877 DISTRIBUTION : — Franchise tax paid U. S. Government 25 26 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. Movement of Principal Asset and SCHEDULE 4. [Amounts in thousands Discounted bills. Date. Total earning assets 2+7+10). January 7 January 14 January 21 January 28 February 4 February 11 February 18 February 25 March 4 March 11 March 18 March 25 April 1 April 8 April 15 April 22 April 27 May 4 May 11 May 18 May 25 June 1 June 8 June 15 June 22 June 29 July 0 July 13 July 20 July 27 August 3 August 10 August 17 August 24 August 31 September 7 September 14 September 21 September 28 October 5 October 11 October 19 October 26 November 2 November 9 November 16 November 23 November 30 December 7 December 14 December 21 December 28 $195,961 179,942 173,994 168,814 163,894 172,224 170,111 173,161 178,306 180,560 174,874 181,923 178,225 151,480 136,227 134,748 127,666 128,493 127,008 136,345 128,484 142,599 136,777 139,371 120,725 125,340 113,271 106,471 99,975 103,249 98,566 102,221 105,857 113,999 122,510 119,177 117,217 109,462 105,347 99,247 93,785 90,966 88,075 89,182 75,924 85,S97 84,340 97,093 77,843 86,613 91,347 94,350 Discounted for member banks in this district. Total held (3+4). $157,265 143,433 134,188 124,938 122,148 129,611 133,965 135,585 140,846 145,521 141,417 149,692 147,629 123,732 107,524 106,586 99,427 100,185 99,86S 92,838 95,824 111,113 104,230 91,481 91,905 97,521 85,839 79,909 74,734 78,227 73,088 76,442 S0,753 90,858 100,323 97,624 95,551 80,015 85,580 78,831 72,168 71,800 69,166 70,817 59,523 05,423 00,327 75,448 58,577 00,002 07,950 68,933 Discounted for other F. R. Banks. $11,873 10,014 9,841 4,275 3,990 1,925 1,500 2,000 2,000 2,910 3,475 4,906 3,542 5,500 2,500 7,408 4,125 8,425 10,450 16,445 18,287 16,136 12,645 13,991 17,061 25,618 26,716 24,103 27,058 21,093 22,103 21,840 16,894 16,043 18,454 17,071 12,918 6,741 9,128 10,246 .6,175 1,000 Total held (2-3). $145,392 133,419 124,344 120,663 118,158 127,686 133,965 135,585 140,846 145,521 141,417 149,692 147,629 123,732 106,024 104,580 96,827 97,275 90,393 87,932 92,282 105,613 101,730 84,073 87,780 89,096 75,389 63,464 56,447 62,091 60,443 62,451 63,692 05,240 73,607 73,521 08,493 05,522 03,417 50,991 55,274 55,757 50,712 53,746 40,005 58,082 57,199 05,202 52,402 65,602 67,950 08,933 Secured by U. S. Govt. obligations. S63.746 55,5S7 64,722 56,135 52,800 59,393 01,109 58,205 59,002 00,455 08,936 09,248 03,338 54,361 45,270 43,161 40.834 36,123 37,881 35,470 39,724 38,699 35,607 33,639 33,997 35,324 27,904 27,631 25,978 29,349 20,032 29,394 30,645 26,345 30,738 27,301 26,550 20,083 26,797 21,411 20,700 19,452 20,302 23,482 20,281 21,711 23,046 27,737 25,981 25,493 24,881 26,515 Per cent (5 4-4). 43.8 41.7 52.1 46.5 44.7 46.5 45.6 42.9 41.9 41.5 48.7 40.3 42.9 43.9 42.7 41.3 42.2 37.1 39.3 40.3 43.0 30.0 35.0 40.0 38.7 39.6 37.0 43.5 40.0 47.3 43.1 47.1 48.1 40.4 41.8 37.1 38.8 39.S 42.3 37.0 37.4 34.9 40.0 43.7 43.5 37.0 41.3 42.5 49.6 38.9 30.0 38.5 27 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. Liability Items During 1921, Boston. of dollars.! Reserve percentages.1 Purchased bills. Total held (8+9). $16,615 14,514 17,746 21,881 19,752 20,520 14,093 15,518 15,432 13,010 11,431 10,221 9,431 6,405 7,233 6,866 7,113 7,130 5,924 12,798 12,555 11,307 12,754 10,051 9,146 8,220 7,! KI5 6,809 5,750 4,926 5,286 6,023 6,634 4,997 4,174 3,2i i; 3,445 3,454 3,795 3,241 5,578 4,500 4,613 5,078 4,260 8,856 5,640 S,791 5,778 8,299 10,929 12,140 1 Bought from other F. R. Banks. $5,049 10,672 7,368 6,005 1,182 1,132 906 831 831 256 Purchased in open market (7-8). $16,615 14,514 12,697 11,209 12,384 14,515 12,911 14,386 14,526 12,179 10,600 9,963 9,431 6,405 7,233 6.S06 7,113 7,130 5,924 12,798 12,555 11,307 12,754 10,051 9,146 8.220 7,905 6,S09 5,750 4,926 5,286 6.023 6,034 4,997 4,174 3,246 3,445 3,454 3,795 3,241 5,578 4,500 4,613 5,078 4,260 8,850 5,6 tO 8,791 5,778 8,299 10,929 12,140 F. R. notes U. S. securities. Total cash reserves. Total deposits. 10 11 12 13 $229,047 236,513 242,8S7 244,363 248,724 238,180 244,206 243,815 231,327 227,913 230,331 225,791 223,984 250,142 260,188 270,400 270,946 269,157 268,159 259,341 263,390 254,498 254,541 255,089 263,991 257,436 276,597 276,327 278,813 275,670 282,656 278,522 269,848 261,167 250,914 202,497 258,713 262,805 262,303 270,040 276,159 275,273 275,397 272,918 275,930 263,159 265,810 250,168 264,364 263,372 246,529 245,726 $119,702 116,592 118,012 113,756 115,296 117,058 117,572 $281,372 272,193 266,770 265,277 264,731 261,954 264,504 265,717 267,478 265,207 261,596 259,837 258,547 257,265 256,329 259,859 258,946 259,260 257,752 256,040 254,485 257,700 250,525 251,032 250,317 249,784 254,169 251,141 245,906 242,464 246,082 244,520 241,611 241,022 241,411 244,900 241,999 238,331 234,562 234,718 234,173 231,940 224,159 220,585 217,944 215,458 213,519 209,413 208,261 207,66S 208,932 206,026 $22,081 21,995 22,060 21,995 21,994 22,093 22,053 22,058 22,028 22,029 22,026 22,010 21,165 21,343 21,470 21,296 21,126 21,178 21,216 30,709 20,105 20,179 19,793 37,839 19,674 19,599 19,527 19,753 19,491 20,096 20,192 19,756 18,470 18,144 18,013 18,307 18,221 19,393 15,972 17,175 16,039 14,666 14,296 13,287 12,141 11,618 12,373 12,854 13,488 11,712 12,462 13,277 118,073 113,017 113,827 112,576 118,619 113,452 112,637 108,702 116,190 110,990 109,487 110,169 111,093 109,410 111,435 109,256 119,497 106,559 106,478 112,868 111,973 109,947 111,764 110,732 113,294 110,824 110,240 109,939 115,216 113,518 111,707 110,358 109,402 111,679 116,515 117,182 121,820 114,951 118,582 116,616 118,595 114,811 121,745 111,804 116,767 circulation. Actual. Adjusted.2 14 59.6 62.9 64.4 65.3 tM>.r, 64.0 64.9 04.3 62.1 61.3 61.6 59.7 60.2 67.6 71 3 71.9 73.2 73.0 72.9 70.6 72.4 68.9 69.6 68.N 74.0 72.3 75.4 76.1 78,4 77.8 79.2 77,s 76.6 74,1 71.4 72.9 72.8 75.1 76.0 78.5 79.S 79.0 80.7 79.7 82.9 78. S SO. 5 76.3 81.s 80.0 76.9 76.1 15 62.7 65.6 68.4 69.3 69.6 66.1 65.2 04.5 6-2.3 61.5 61.8 59.7 71.7 72.4 73.9 73. S 73.8 72.0 73.4 70.4 70.3 70.8 75.1 74.6 78.2 80.0 83.5 82.4 82.8 81.8 81.4 81.6 79.0 79.6 80.4 81.1 82.5 84.8 84.7 83.0 86.1 84.7 86.8 80.8 83.3 79.4 83.7 80.3 Prior t o March 18, net deposits as given below were used in calculating reserve percentages: ,136,000 J a n . 7 $102,825,000 Feb. 4 $109,186,000 Mar. 4 $105,1 Jan. 11 106,585,000 Tan 14 id. in^sj.3finn Vch i i n n 977 nnn • Mar. ATOT- 11 inn a Jan. 21 Jan. 28 00 Volume of paper discounted and bought. SCHEDULE 5. [000 omitted.] Month. Total. January... February. . March.... April May Trade acceptances. 51 101 105 82 362 70 180 378 80 210 135 81 98 118 193 97 100 207 295 523 460 500 363 344 469 470 190,853 241,753 297,030 128,400 123,757 87,494 96,461 118,082 100,741 161,857 235,915 239,246 4,027 2.087.580 July August. . . . September. October. . . November. December . 304,636 281,794 434,212 238,343 248,080 169,057 99,234 175,990 162,837 87,941 81,681 77,282 Total: 1921 4,454,700 2,301,087 152 1,905 1920 1919 4,876,554 4,675,398 4,074,030 4,480,154 22,129 4,980 4,602 10,820 Agricultural and live-stock paper. Secured by Bankers' Govt. obli- acceptgations. ances. 495,838 523,827 731,710 367,020 372,318 257,452 196,235 294,782 330,070 250,223 318,163 317,116 Total discounted and purchased paper. Purchased paper. Discounted paper. All other. 775J33 173,438 j Total. Bankers' Dollar accept- exchange. ances. 11,224 23,004 23,788 13,278 25,430 14.361 11.033 15,127 10,639 13,880 24.88S 24,985 10,349 21,774 21,818 12,313 21,594 13,321 10,103 14,500 10,454 13,053 2 1,883 21,301 875 1,290 1,970 965 3,842 1,040 870 567 185 827 3,005 3,624 211,703 192,043 19,060 304,444 300,784 303,082 350,109 1,362 525 Trade acceptances. I 1921. 1920. 1919. 507,062 546,891 755,498 380,298 397,754 271,813 207,268 309,909 340,715 204,103 343,051 342,101 381,991 454,884 486,959 375,195 450,431 440,646 309,053 441,629 417,178 306,431 483,360 573,241 395,343 370,082 344,036 522,481 402,431 394,712 431,033 287,944 334,405 429,898 490,900 566,317 4,000,403 4,150 5,180,998 5,036,182 SCHEDULE 6. Statement of aggregate earning assets, showing holdings, earnings and average rates, by months. [000 omitted.] Months. January. . . February. . March. . . April May June July August. . . September. October. . . November. December. Total Average daily holdings. Actual Avermonthly age earnings. rate. Average daily holdings. 6.53 6.51 6.50 6.52 6.22 6.07 5.99 5.73 5.66 5.38 5.04 4.61 $17,155 18,038 12,425 7,224 10,088 10,746 6,724 6.03 [! $144,458 127,645 142,903 116,670 100,311 98,255 80,462 82,461 93,236 75,477 69,058 66,073 $802 037 788 625 530 490 11(1 ij 1,197,009 6,007 99,581 169,926 142,395 74,096 501 836 •101 433 345 2SC) Investments. (U. S. Securities.) Bills purchased. Bills discounted. Actual Average monthly earnings. rate. Actual Average monthly earnings. rate. Average daily holdings. Actual Avermonthly age earnings. rate. Average daily holdings. 2.08 2.04 2.07 2.09 2.24 2.28 2.06 2.09 2.19 2.15 2.30 2.57 $184,130 167,783 177,754 145,246 132,705 130,992 106,834 107,169 115,130 95.0S I 87,710 88,021 321 5.94 5.86 5.90 5.83 5.52 5.4 1 5.26 5.06 5.09 4.84 4.62 4.31 2.16 1,538,561 6,938 5.42 2.16 2.20 2.03 3.14 127,981 222,779 185,878 99,305 579 1,016 021 312 5.42 5.46 4.02 4.13 6,093 8,920 sss 82 62 35 49 51 33 26 15 IS 23 33 6.02 5.95 5.90 5.9] 5.76 5.,SI 5.79 5.28 5.1 1 4.95 4.62 4.37 $22,523 22,100 22,426 21,352 22,306 21,991 19,648 19,045 18,490 15,282 12,559 13,028 110,802 515 5.61 230,750 9,187 27,696 25,306 21,787 43 134 90 78 5.61 5.81 i 4.20 ; 4.26 5,663 3,404 4,322 Aggregate. 416 754 8S9 697 622 582 •177 461 •is I 391 333 Average for year 1921 1920 1919 1918 255 6.03 5.89 4.22 4.13 19,213 25,157 18,177 3,422 SCHEDULE 7. Loans, rediscounts, and member banks accommodated, by states. Mass. Outside of Boston. Boston. Maine. New Hampshire. Vermont. Rhode Island. Connecticut. Months. Amt. January February.. . . March. April May June July August September.. . October November.. . December. . . $452,036 485,938 676,543 322,923 323,755 206,230 154,958 251,213 287,905 211,541 270,085 264,758 Total 1921 3,907,885 Dec. 31, 1921 34,760 No. of banks. 25 25 26 27 28 27 27 28 29 29 29 28 Amt. $23,713 19,170 26,504 20,565 21,588 23,286 20,090 19,962 20,035 16,411 25,554 25,849 No. of banks. 94 89 92 89 85 94 82 74 79 79 80 93 262,727 23 9,561 Amt. No. of banks. $2,962 2,600 4,968 3,700 4,469 5,7(51 3,241 3,017 3,182 6,299 5,952 6,614 25 24 29 29 30 33 29 22 25 26 26 31- 4,818 $3,206 2,946 5,230 4,882 4,302 4,596 4,151 3,937 3,809 3,352 3,761 4,618 No. of banks. 29 34 38 38 36 38 36 36 32 32 34 35 48,790 52,765 74 Amt. 30 2,410 Amt. $1,684 1,852 2,744 2,684 2,491 2,359 2,063 2,416 2,6^0 2,202 2,033 1,531 No. of banks. 19 21 26 29 28 27 26 25 25 21 20 23 26,739 33 1,216 Amt. $2,502 1,723 2,855 1,475 1,852 1,737 1,355 660 1,453 1,558 960 2,459 No. of banks. 9 7 8 8 9 8 6 4 6 7 7 7 20,649 19 723 Amt. $9,675 9,598 12,866 10,791 13,861 13,483 10,377 13,577 11,012 8,860 9,818 11,287 No. of banks. 27 25 26 30 32 32 28 29 31 28 25 29 135,205 5 5,683 Per cent of No. banks of mem- borber rowNo. banks. ing of to banks. total. Total. Amt. $495,83S 523,827 731,710 367,020 372,318 257,452 196,235 294,782 330,076 250,223 318,163 317,116 22S 225 245 250 248 259 234 218 227 222 221 246 439 439 436 436 438 438 438 437 436 436 436 436 51.9 51.2 56.1 57.3 56.6 59.1 53.4 49.8 52.0 50.9 50.6 56.4 207 436 47.5 4,454,760 23 59,171 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 31 SCHEDULE 8. — Purchases from and rediscounts for other Federal Reserve Banks. [000 omitted.] Note.—There were no sales to or rediscounts with any of the other Federal Reserve Banks by the Federal Reserve Bank of Boston in 1921. Transactions with Federal Reserve Bank of:— Bankers' acceptances purchased. Discounts Discounts secured by secured agriculturby U. S. al, industrial, or obligacommertions. cial paper. $10,000 Months. $39,650 10,000 39,650 109,508 41,492 151,000 123,008 81,142 214,821 Chicago 3,500 3,500 Kansas City San Francisco 10,671 SCHEDULE 9. Total. $10,671 $10,071 Cleveland Total Total purchases and rediscounts by months. January February... March April May June July August September.. . October November.. . December... . Amount. $30,721 2,000 7,500 10,000 18,000 27,000 39,100 33,500 25,500 17,000 4,500 214,821 Open market purchases of bankers' acceptances by classes. (Omitting purchases from other F . R. Banks.) [000 omitted.] Months. Imports. Exports. Domestic. Dollar Exchange. Total. January.. February. March. . . April May June July August. . . September October. . November December. S5,139 9,508 10,893 5,581 10,091 7,356 4,579 7,766 4,023 4,444 !>,750 6,194 S2,270 6,434 6,399 2,578 4,797 3,273 2,632 3,720 2,596 2,840 4,914 5,506 $2,940 5,832 4,526 4,154 6,706 2,0112 2,951 3,074 3,835 5,770 7,210 9,600 $875 1,290 1,970 965 3,842 1,040 870 567 1S5 827 3,005 3,625 $11,224 23,064 23,788 13,278 25,436 14,361 11,032 15,127 10,639 13,881 24,888 24,985 Total. 85,333 47,959 59,350 19,061 211,703 Co to Currency receipts from and payments to member and non-member banks. SCHEDULE 10. [000 omitted.] Receipts. Month. January February March April May June July August September October November December Total: 1921 1920 1919 From member banks. Payments. From non-member banks. To member banks. Total Receipts To non-member banks. 1921. $64,023 43,369 58,599 55,910 57,269 60,948 58,001 59,020 56,911 60,764 60,624 68,326 $5,320 3,216 4,072 4,429 3,077 3,940 5,269 4,895 4,627 4,428 4,403 5,083 $37,409 47,773 58,190 58,705 58,568 57,603 58,994 59,931 58,745 56,694 57,571 78,564 $1,742 1,907 2,139 1.SS0 2,098 1,092 497 411 452 403 457 542 $69,343 46,585 62,671 60,339 60,346 64,888 63,270 63,915 61,538 65,192 65,027 73,409 703,764 643,782 462,153 52,759 55,197 43,700 688,747 683,881 400,319 13,620 4,743 2,022 756,523 1920. $54,612 31,523 47,497 52,936 52,579 64,916 64,221 61,088 64,130 68,030 62,671 74,776 Total Payments 1919. $47,000 28,280 33,842 40,293 47,230 41,987 47,230 38,688 39,525 53,832 36,890 51,056 1921. $39,151 49,680 60,329 60,585 60,666 58,695 .v.M'.u 60,342 59,197 57,097 58,028 79,106 702,367 698,979 505,853 1920. $38,496 50,323 50,773 44,812 55,069 63,583 60,149 73,509 74,090 55,688 55,530 66,002 688,624 1919. $17,173 20,440 26,579 27,674 17,869 31,536 37,408 38,885 36,980 41,164 39,078 60,664 401,450 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 11. 33 Movement of currency. Fit and unfit currency received. 1921. 1920. Mos. Jan.. Feb.. Mar.. Apr.. May June July. Aug.. Sept.. Oct. . Nov.. Dec. From banks in district. From Government officers. From other Federal Reserve Banks. Total. $66,162,869 43,249,905 58,760,292 57,283,790 57,541,533 63,710,335 62,219,549 62,732,377 60,431,228 63,967,800 63,853,577 71,611,363 $961, 554 2,114,393 2,635,031 1,797,947 1,679,054 1,948,974 1,906,168 2,751,288 1,912,031 1,827,831 1,845,707 2,257,616 5,75 $5,755,960 6,173,185 10,834,240 5,677,805 4,695,730 4,589,015 4,498,065 5,504,055 4,685,845 6,027,035 4,203,370 3,556,327 $72,880,383 51,537,483 72,229,563 64,759,542 63,916,317 70,248,324 68,623,782 70,987,720 67,029,104 71,822,666 69,902,654 77,425,306 From banks in district. From Government officers. From other Federal Reserve Banks. Total. $4,245,600 $57,65 59,600 $53,414,000 31,075,000 3,021,335 34,096,335! 47,497,000 4,454,582 51,951,582 52,936,000 5,554,525 58,490,525 52,579,000 7,661,920 60,240,920, 64,916,000 5,861,425 70,777,425 64,221,000 5,007,775 69,228,7751 61,088,000 5,729,725 66,817,725 64,130,000 10,082,965 74,212,965 ! 68,030,000 11,470,060 79,500,060 61,688,024 $982,976 8,335,300 71,006,300 73,697,227 1,078,773 6,610,200 81,386,200 Total 731,524,618 23,637,594 66,200,632 821,362,844 695,271,251 2,061,749 78,035,412 775,368,412 Fit currency paid out. 1921. 1920. Mos. To banks in district. To Government officers. To other Federal Reserve Banks. Total. To banks in district. Jan.. $36,854,625 $1,602,317 S4,89S,900 $43,355,842 $41,624,000 Feb.. Mar. Apr.. May June July. Aug. Sept. Oct.. Nov. Dec. 47,144,594 57,615,526 58,139,408 57,827,161 56,802,665 58,511,441 59,189,809 57,961,264 55,855,469 56,344,180 75,943,779 1,666,071 1,607,750 1,426,978 1,653,957 1,726,669 1,643,009 1,679,814 1,605,596 1,658,065 1,616,859 2,295,602 2,088,600 2,987,400 3,339,400 2,542,400 2,913,750 3,209,950 3,256,700 3,395,500 3,068,900 2,686,450 2,704,850 50,899,265 62,210,676 62,905,786 62,023,518 61,443,084 63,364,400 64,126,323 62,962,360 60,582,434 60,647,489 80,944,231 To Government officers. 49,938,000 50,773,000 44,812,000 55,069,000 63,583,000 60,149,000 73,509,000 74,090,000 Oct. 26 55,616,181 $71,819 53,272,290 2,257,710 64,914,808 1,687,192 To other Federal Reserve Banks. Total. $5,162,350 2,465,850 3,192,450 4,512,300 4,220,650 4,507,000 6,530,400 7,725,500 7,195,000 5,987,000 4,161,700 4,405,850 $46,786,350 52,403,850 53,965,450 49,324,300 59,289,650 68,090,000 66,679,400 81,234,500 81,285,000 61,675,000 59,691,700 71,007,850 I Total 678,189,921 20,182,687 37,092,800 735,465,408 687,350,279 4,016,721 60,066,050 751,433,050 34 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 12. Volume of currency handled in the sorting division. Dollars. Pieces. Months. January. . . February. . March. . . . April May June July August. . . . September. October. . . November. December. Total Total 1 $87,517,667 64,722,201 74,306,025 68,236,337 69,822,320 74,049,031 73,312,346 75,032,171 74,981,727 74,711,643 74,896,145 81,883,030 $67,963,000 36,534,000 62,129,000 60,709,000 61,683,000 73,650,000 84,354,000 72,489,000 79,487,000 82,039,000 80,220,000 84,707,000 14,591,778 9,753,387 12,040,064 10,667,600 11,437,575 12,045,388 11,977,483 12,381,721 12,503,680 12,776,161 12,756,602 14,546,229 12,112,000 6,991,000 10,382,000 10,967,000 11,621,000 12,700,000 13,430,000 12,297,000 12,375,000 13,435,000 12,310,000 13,392,000 893,470,643 845,964,000 147,477,668 142,012,000 Returned by other Federal Reserve Banks to the Federal Reserve Bank of Boston. 1 1921. New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 1920. 1921. 1920. Inter-district movement of Federal Reserve notes. SCHEDULE 13. Federal Reserve Banks. 1921. 1920. 1919. Returned to other Federal Reserve Districts by the Federal Reserve Bank of Boston. 1 1920. 1921. 1919. $86,003,200 $72,012,450 $45,236,150 $47,364,000 $59,550,000 $59,738,000 6,702,750 4,247,000 6,208,000 7,049,500 6,830,200 6,872,600 3,934,500 2,325,250 2,777,300 3,995,900 3,783,000 4,427,450 3,720,500 2,237,750 3,740,500 3,474,000 4,625,100 4,392,150 3,080,730 1,607,830 2,313,150 2,943,900 2,616,100 2,470,650 6,830,000 3,681,000 5,581,200 6,608,600 5,551,400 6,369,450 1,300,230 1,073,035 1,478,020 1,066,500 810,100 1,219,550 586,550 420,000 504,500 806,900 521,600 1,378,050 858,400 522,400 802,850 1,125,500 899,700 1,621,300 751,400 306,605 597,150 1,465,800 1,017,200 509,100 2,843,035 1,062,445 2,277,035 1,496,900 1,651,600 1,294,600 116,611,295 98,292,155 62,719,465 75,670,000 89,583,500 90,292,900 Includes unfit notes sent directly to the Treasurer of the United States. SCHEDULE 14. Coin transactions of the Federal Reserve Bank of Boston for the year ending December 31, 1921. Nature of Transaction. Deposits:— For credit For redemption Total Gold. $1,794,634 11,400 Silver Dollars. Subsidiary Silver. Minor Coin. Total. $145,582 $11,183,972 $2,363,664 $15,487,852 10,456 309,905 90,345 422,106 1,806,034 156,038 11,493,877 2,454,009 15,909,958 Disbursements:— 2,123,050 To member banks 49,000 To non-member banks 31,931 To U. S. Mint for redemption.. . . 102,460 4,200 25,000 10,757,870 117,541 245,300 2,378,345 9,780 43,590 15,361,725 180,521 i 345,821 2,203,981 131,660 11,120,711 2,431,715 15,888,067 Total ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. S C H E D U L E 15.— Amount of Federal Reserve Bank notes, Federal Reserve Bank of Boston, received from the Comptroller, redeemed and destroyed, November 16, 1914, to December 31, 1921, inclusive; and amounts actually outstanding, held by the bank, in actual circulation, deposited with the Treasurer of the United States to redeem circulation, and net amount of bank's liability, December 31, 1921. Federal Reserve Bank Notes. Total received from Comptroller Total redeemed and destroyed Ones. Twos. Fives. Total. $39,600,000 34,953,802 $22,896,000 17,809,598 $2,200,000 2,064,600 $64,696,000 54,828,000 4,646,198 5,086,402 135,400 9,868,000 566,900 Amount actually outstanding, Dec 31, 1921 Amount held by the bank, Dec. 31, 1921.. Amount in actual circulation, Dec. 31, 1921 Amount deposited with Treasurer of the United States to redeem circulation. . 9,301,100 Net amount of bank's liability 6,277,100 3,024,000 United States Special 2% Certificates of Indebtedness pledged to secure circulation, 88,450,000 S C H E D U L E 16. — New currency received by the Federal Reserve Bank of Boston and by the national banks in the First Federal Reserve District. Classes. By the Federal Reserve Bank of Boston: From the Treasurer of the United States:— Gold certificates . Silver certificates United States notes From the Federal Reserve Agent:— Federal Reserve notes From the Comptroller of the Currency:— Federal Reserve Bank notes By National Banks in the First Federal Reserve District: From the Comptroller of the Currency:— National Bank notes Total SCHEDULE 17. Federal Reserve notes, Federal Reserve notes, Federal Reserve Bank National Bank notes 2 1919. $150,000 23,920,000 60,160,000 $27,496,000 $6,940,000 14,600,000 161,250,000 202,269,000 206,840,000 11,096,000 24,588,000 19,515,000 45,686,210 29,113,430 32,489,130 302,262,210 283,466,430 2S0,384,13O 1921. 358,691,000 1919. 1920. $490,000 $1,000,000 10,045,000 10,296,000 38,175,000 31,212,000 Federal Reserve Bank of Boston . 214,263,000! 104,358,600 32,209,600 other Federal Reserve Banks . . . . 39,626,500 19,642,300 11,114,600 notes 36,449,200 29,351,400 Total 1 1920. Unfit currency forwarded to the Treasurer of the United States for redemption. Classes. Gold certificates Silver certificates 1921. 219,542,200 $5,000,000 17,407,000 27,436,000 95,713,000 19,387,850 2 48,391,350 213,335,200 Includes $32,460,000 fit Federal Reserve notes returned to Federal Reserve Agent. Included in National Bank notes. 36 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 18. Comparative statement of Federal Reserve Agent. [000 omitted.] RESOURCES. Federal Reserve Notes : Outstanding Sent to Comptroller of Currency for redemption Eligible paper held as security for outstanding Federal Reserve Notes Gold and gold certificates on hand In Gold Redemption Fund With Federal Reserve Board Total LIABILITIES. Federal Reserve Notes received from the Comptroller of the Currency Collateral pledged against outstanding Federal Reserve Notes: Gold and gold certificates Eligible paper Total Dec. 31, 1921. Dec. 31, 1920. Dec. 31, 1919. $100,140,000 220,156,805 577,103,195 $122,180,000 301,554,045 337,265,955 $28,680,000 254,717,970 192,902,030 72,319,714 5,600,000 19,309,805 135,000,000 194,046,332 5,600,000 19,147,045 110,000,000 206,687,726 1,129,629,519 1,089,793,377 756,498,696 Dec. 31, 1921. 13,510,970 60,000,000 Dec. 31, 1920. Dec. 31, 1919. 8897,400,000 $761,000,000 $476,300,000 159,909,805 72,319,714 134,747,045 194,046,332 73,510,970 206,687,726 1,129,629,519 1,089,793,377 756,498,696 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. S C H E D U L E 19. 37 Federal Reserve Notes issued and retired by Federal Reserve Agent, 1921. A. Months. Outstanding on first of month. BY MONTHS. Issued during the month. January... February.. March . . . April May June July August. . . September. October. . . November. December. 5301,554,0451 §10,600,000 279,999,245 22,750,000 278,819,945 12,580,000 271,223,145 13,120,000 269,772,935 30,560,000 272,516,785 21,300,000 267,393,925 22,900,000 262,428,005 15,900,000 257,818,505 14,010,000 250,832,605 12,000,000 240,406,205 4,480,000 227,540,255 10,700,000 Total. 190,900,000 Retired during the month. Outstanding at end of month. Net increase ( + ) or decrease (—). S279,999,245 $21,554,8001,179,300278,819,945 7,596,800 271,223,145 1,450,210 269,772,935 2,743,850 + 272,516,785 5,122,860267,393,925 4,965,920 262,428,005 4,609,500 257,818,505 6,985,900250,832,605 240,406,205 10,426,400 227,540,255 12,865,950220,156,8051 7,383,450 272,297,240 81,397,240- -BY DENOMINATIONS. Denominations. Fives Tens Twenties Fifties Hundreds Five Hundreds. . One Thousands. Five Thousands Ten Thousands. Total. Outstanding Jan. 1, 1921. Issued during the year. Retired during the year. Net Outstanding increase ( + ) Dec. 31,1921. or decrease (—). $42,316,655 105,544,570 113,548,720 15,742,500 16,377,600 968,000 5,711,000 385,000 960,000 $42,160,000 73,160,000 58,880,000 5,200,000 10,400,000 700,000 400,000 $56,873,860 104,627,600 89,496,580 9,531,300 8,743,900 426,000 2,528,000 30,000 40,000 $27,602,795 $14,713,86074,076,970 31,467,600 82,932,140 30,616,58011,411,200 4,331,3001,656,100 + 18,033,700 274,000 + 1,242,000 3,583,000 2,128,000355,000 30,000 40,000 920,000 301.554.0451 190,900,000 272,297,240 220.156.8051 81,397,240- l Does not include $24,700 of fit Federal Reserve Notes returned to the Federal Reserve Agent by the U. S. Treasurer and subsequently reissued to the bank. 38 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. S C H E D U L E 20. — Amount of Federal Reserve. Notes issued to the Federal Reserve Bank of Boston h/ the Federal Reserve Agent, amount retired and outstanding, and amount of collateral held by the Federal Reserve Agent against notes outstanding. Issued to the Bank:— Nov. 16, 1914, to Dec. 31, 1919, inclusive During 1920 During 1921 84-53,020,000 224,880,000 190.900,000 Total $868,800,000 Retired, unfit for circulation:— Nov. 16, 1914, to Doc. 31, 1919, inclusive During 1920 During 1921 Returned by Bank to Agent Nov., 1914, to Dec. 31, 1921, inclusive 192,902,030 144,363,925 239,837,240 71,540,000 Total 61,8,643,195 Amount outstanding Dec. 31, 1921:— In actual circulation Held by Federal Reserve Bank 202,534,605 17,622,200 Total 220,156,805 Amount of collateral held by Federal Reserve Agent Dec. 31, 1921, against Federal Reserve Notes outstanding:— Gold and gold certificates on hand 5,600,000 In Gold Redemption Fund 1.9,309,805 With Federal Reserve Board 135,000,000 159,909,805 72,319,714 Eligible paper Total 232,229,519 Excess of collateral held by Federal Reserve Agent Dec. 31, 1921, against Federal Reserve Xoles outstanding:— SCHEDULE 21. 12,072,714 Reserve position on the first of each month, 1921. [000 omitted.] Federal Reserve Total notes in actual combined liability. circulation. Required reserve. Total Excess Adjusted reserve ratio prior to Reserve interratio. bank rediscounts. 1921. January. . . S120.06611 $288,780 $408,846 February. . 113.6931 264,386 378,079 265,727 March 114,831 380,558 259,100 April 371,321 112,221 258,502 May 112,446 370,948 256,653 369,226 June 112,573 250,158 360,118 July 109,960 245,970 August. .. . 112,248 358,218 241,411 September. 109,939 351,350 234,711 October .. . 109,242 343,953 221,909 339,242 November 117,333 December.. 209,413 328,008 118,595 $157,535 145,547 146,482 142,917 142,757 142,062 138,549 137,675 135,043 132,119 129,831 125,273 $217,516 240,820 235,314 221,465 267,086 254,270 260,762 277,134 250,915 261,133 269,734 250,168 $59,981 95,273 88,832 78,548 124,329 112,208 122,213 139,459 115,872 129,014 139,903 124,895 53.2%i 63.711 61.8 59.6 72.0 68.9 72.4 77.4 71.4 75.9 79.5 76.3 Month. Total deposits. 1 57.6%i 67.8i 62.li 59.6 73.3 70.4 75.0 81.2 79.0 82.3 84.8 79.4 lAdjusted to basis adopted on March IS, 1921, by which the deposits entering into the reserve calculation were increased through the elimination of collection items due to and due by the bank. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 22. Gold Settlements Fund transactions, 1921. A. By months. Received. Paid. Gain (+)"""or Loss (—). January. . February. March. . . April.... May June July August.. . September October. . November December. $510,376,541.16 374,725,349.00 440,090,421.97 447,702,814.58 416,726,254.93 458,938,508.52 457,462,566.81 434,662,991.02 457,651,215.34 488,815,050.60 490,926,967.01 485,544,474.84 $513,899,473.67 374,686,712.70 442,698,249.12 430,695,055.79 437,562,111.83 449,534,213.73 460,347,090.02 448,092,960.19 437,908,615.24 490,494,992.11 482,689,321.67 492,S17,801.69 —$3,522,932.51 + 38,636.30 - 2,007,827.15 + 17,007,758.79 -20,835,856.90 + 9,404,294.79 - 2,884,523.21 -13,429,969.17 + 19,742,600.10 - 1,679,941.51 + 8,237,645.34 - 7,273,326.85 Total. 5,463,623,155.78 5,461,426,597.76 + 2,196,558.02 Months. B. Received. Paid. Gain ( + ) c Loss ( - ) . Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Treasurer of the United States Federal Reserve Agent Gold Redemption Fund 3,722,921,736.97 417,711,421.68 173,984,129.79 139,994,646.96 96,326,374.98 372,200,070.54 102,546,762.31 38,117,889.63 47,978,854.33 176,993,948.74 91,053,570.94 18,062,000.00 40,000,000.00 25,731,748.91 3,526,623,S02.42 380,314,382.27 180,930,942.82 112,920,505.35 105,216,556.12 337,901,643.11 89,259,425.08 31,127,523.63 47,341,145.62 179,121,184.81 75,862,503.92 235,150,000.00 120,000,000.00 39,050,982.61 + 196,297,934.55 + 37,397,039.41 6,946,813.03 + 27,074,141.61 - 8,890,181.14 + 34,298,427.43 + 13,287,337.23 + 6,990,300.00 + 637,708.71 2,127,236.07 + 15,191,067.02 -217,088,000.00 - 80,000,000.00 - 13,925,233.70 Total 5,463,623,155.78 5,401,426,597.76 + Federal Reserve Banks and Others. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. By accounts. 2,196,558.02 39 40 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. Comparison of loans to and reserve deposits of Boston and country banks at the Federal Reserve Bank of Boston. SCHEDULE 23. [000 omitted.] Loans to member banks. 1 Reserve deposit of member banks. % of Boston to total. 1921. January February March April May June July August September October November December 7.. . 14... 21.. . 28.. . 4.. . 11 . . 18 . . 25... 4.. . 11.. . 18.. . 25... 1.. . 8... 15.. . 22... 27.. . 4.. . 11.. . 18.. . 25.. . 1.. . 8... 15.. . 22.. . 29.. . 6... 13.. . 20.. . 27.. . 3.. . 10... 17.. . 24.. . 31... 7.. . 14.. . 21.. . 28.. . 5.. . 11.. . 19.. . 26.. . 2.. . 9.. . 16.. . 23... 30... 7.. . 14... 21.. . 28.. . In Boston.2 All others. 3 In Boston.2 All others. 3 $117,292 106,781 99,099 95,433 94,422 104,089 110,250 111,188 116,173 120,982 114,902 119,115 117,635 96,972 79,358 77,955 69,455 71,451 69,585 61,533 64,406 75,538 71,894 54,904 59,924 58,022 46,428 37,517 32,158 37,874 35,783 38,093 40,433 41,186 50,021 49,379 45,173 42,555 38,690 33,221 32,303 32,638 27,123 32,398 25,152 35,935 32,579 37,091 25,394 38,060 39,771 40,949 $28,101 26,638 25,245 25,230 23,736 23,597 23,716 24,397 24,673 24,540 26,514 30,577 29,994 26,760 26,666 26,631 27,372 25,824 26,808 26,399 27,876 30,076 29,836 29,169 27,857 31,074 28,962 25,946 24,290 24,217 24,661 24,358 23,259 24,054 23,585 24,143 23,321 22,967 24,727 23,770 22,970 23,120 23,589 21,348 21,453 22,747 24,621 28,111 27,008 27,542 28,185 27,984 $63,405 63,331 65,349 61,233 61,623 63,146 61,819 60,145 59,907 58,913 58,874 58,902 57,171 58,743 58,643 59,071 58,787 59,019 59,867 61,383 60,205 00,299 59,062 63,640 57,808 56,744 59,601 59,744 56,724 59,972 58,905 60,236 59,798 58,283 56,752 57,583 60,752 58,562 57,842 58,358 59,843 63,229 61,291 64,047 60,641 63,546 62,117 64,623 60,866 62,471 61,160 61,243 $54,485 52,054 51,417 50,147 50,497 50,689 49,692 49,592 48,770 49,022 49,532 47,477 48,506 48,362 48,646 48,786 49,310 48,457 48,895 48,040 47,237 47,634 48,695 54,267 47,348 47,676 50,139 50,645 49,663 48,776 49,065 48,662 49,556 49,220 49,548 48,096 49,887 48,720 48,915 49,353 48,068 50,619 51,546 52,826 49,828 51,808 49,228 48,691 48,836 49,133 47,029 48,855 1 2 Loans. 80.7 80.0 79.7 79.1 79.9 81.5 82.3 82.0 82.5 83.1 81.3 79.6 79.7 78.4 74.8 74.5 71.7 73.5 72.2 70.0 69.8 71.5 70.7 65.3 68.3 65.1 61.6 59.1 57.0 61.0 59.2 61.0 63.5 63.1 68.0 67.2 65.9 64.9 61.0 58.3 58.4 58.5 53.5 60.3 54.0 61.2 57.0 56.9 48.5 58.0 58.5 59.4 Deposit. 53.8 54.9 56.0 55.0 55.0 55.5 55.4 54.8 55.1 54.6 54.3 55.4 54.1 54.8 54.7 54.8 54.4 54.9 55.0 56.1 56.0 55.9 54.8 54.0 55.0 54.3 54.3 54.1 53.3 55.1 54.6 55.3 54.7 54.2 53.4 54.5 54.9 54.6 54.2 54.2 55.5 55.6 54.3 54.8 54.9 55.1 55.8 57.0 55.5 56.0 56.5 55.6 Does not include liability on acceptances. Exclusive of four outlying Boston banks which carry the 7% reserve requirements of Country Banks. 3 Inclusive of four outlying Boston banks which carry the 7% reserve requirements of Country Banks. SCHEDULE 24. Comparison of items reported by member banks in selected cities on the first Wednesday of each month, 1921. [000 omitted.] Member banks in Springfield, Providence, New Haven, Hartford, Portland, Fall River, New Bedford and Worcester. 1921. January 1 .1 . February . March 1 . . . Aprili May June July August. . . September October.. . November. December. Ratio of Total Total Loans loans Borrowed loans and borrowLoans secured ings to United All other Net secured loans and and in- from Fed- invest- total loans demand States by United by ments eral other invest- vestments States investsecurities deposits. obliga- stocks and ments. excluding Reserve including ments and owned. borrowborrowBank. bonds. tions. borrowings. ings. ings. 851,694 46,024 47,003 49,210 47,675 46,486 47,521 50,197 47,601 53,195 54,728 52,723 $10,464 10,594 9,769 9,875 10,672 9,814 10,039 10,659 10,380 10,025 10,039 9,876 $70,120 $305,005 71,174 302,926 68,193 300,495 68,427 297,897 67,813 294,416 69,666 296,463 69,597 296,931 70,682 293,690 292,670 70,501 293,844 69,789 68,385 296,245 68,597 293,145 $437,283 430,718 425,460 425,409 420,576 422,429 424,088 425,228 421,152 426,853 429,397 424,341 $8,670 $445,953 6,491 437,209 8,173 433,633 9,984 435,393 9,637 430,213 12,427 434,856 434,369 10,281 433,678 8,450 8,440 429,592 436,168 9,315 8,083 437,480 11,703 436,044 1.9 1.5 1.9 2.3 2.2 2.9 2.4 L.9 2.0 2.1 1.8 2.7 Time ^Posits- I $266,316 $135,243 255,014 138,424 242,063 138,282 241,100 138,063 242,398 138,589 241,221 141,041 240,094 138,977 240,573 139,511 238,048 139,825 237,494 139,021 248,048 141,452 237,612 141,084 d™£s. Total deposits. Reserve with Federal Reserve Bank. $3,783 205 2,115 6,747 3,891 1,117 7,671 8,307 2,880 10,356 4,914 2,115 $405,342 393,643 382,460 385,910 384,878 383,379 386,742 388,391 380,753 386,871 394,414 380,811 $24,904 22,642 21,442 22,122 21,176 21,223 22,735 21,734 20,957 21,595 22,609 20,913 $6,526 9,883 $680,253 670,392 642,303 634,760 650,145 646,547 645,707 652,124 628,110 662,469 686,284 668,569 $63,992 63,313 59,756 57,032 58,882 60,117 59,366 58,737 57,348 58,164 63,799 60,514 Govern- M e m b e r Banks in Boston.2 January 1 .1 . . February .. March 1 April1 May June July August September. . October November. . December.. . 1 5 $17,052 15,344 14,326 13,093 11,513 12,1.53 12,692 20,553 13,062 15,716 20,035 18,251 $21,290 $147,343 $523,431 $709,116 $115,324 $824,440 93,478 792,374 698,896 26,611 145,847 511,094 18,476 115,318 791,508 676,190 143,742 499,646 21,274 117,636 783,772 149,282 482,487 666,136 24,041 71,554 743,451) 671,902 147,009 489,339 23,480 75,409 656,753 732,162 147,455 473,665 24,193 46,301 665,260 711,561 149,414 478,961 22,778 36,046 677,931 713,977 139,835 494,765 21,886 49,319 658,758 708,077 139,773 484,037 22,245 33,104 719,931 686,827 501,595 147,271 32,263 729,744 150,910 504,334 697,481 25,101 708,541 149,320 493,479 683,440 22,390 Figures as of the first Friday of the month. Does not include figures for banks admitted to membership during 1921. 14.0 I i.s 14.6 15.0 9.6 L0.3 6.5 5.0 7.0 4.6 4.5 3.5 5,775 19,898 13,571 5,209 15,934 22,768 8,468 35,148 16,924 7,339 SCHEDULE 25. Debits to depositors' accounts in the Clearing House banks in the larger cities of this district. TOOO omitted.1 1921. Fall River Hartford Holyoke Lowell Manchester.. . New Bedford. New Haven.. . Portland Providence. . . Springfield.. . . Waterbury. . . Worcester.... Total Total 1919. Oct. Nov. Dec. $14,139 21,855 89,151 11,281 17,093 17,558 22,S04 68,701 20,301 120,541 48,403 21,506 55,558 $17,410 26,422 92,233 11,800 20,121 21,466 27.08S 75,127 34,835 129,488 50,783 21,104 60,998 $12,783 25,438 78,202 10,685 17,375 10,510 23,925 59,227 2S.373 112,013 47,164 20,088 51,977 $16,645 29,389 83,063 12,018 19,315 IS, 185 25,823 66,720 32,928 141,342 55,894 23,306 59,084 $17,885 41,528 102,020 15,859 25,018 21,710 30,510 80,428 30,277 102,840 73,589 27,051 71,934 $14,454 23,805 82,872 11,549 18,595 21,567 25.760 03,136 2S.392 121,890 51,472 23,800 58,310 $180,751 316,403 1,081,878 152,290 232,037 231,090 300,311 851,795 3S7.133 1,000,754 083,920 287,010 750,542 368.30S 433,963 859,295s 1,015,075 447,335 352,415 2,035,250 1,731,811 875,788; 760,503 387,7871 302,091 839,549 973,230 504,306 584,342 713,855 545,680 6,837,430' 8,621,317 7,396,990^ 800.5343 967.1423 l,2G9,5043 Apr. May. SI 5,057 24,858 101,112 14,665 19,652 18,083 22,427 75,158 36,110 145,484 62,638 28,061 72,470 $13,581 24,209 79,352 11,386 16,985 15,983 22,613 64,013 33,521 116,971 52,699 20,740 56,608 $17,393 27,798 101,887 15,069 19,468 22,621 26,301 83,698 38,067 149,298 67,032 26,478 71,938 $14,187 22,098 90,214 11,898 17,531 17,931 21,178 00,080 29.0S9 121,154 51,379 22,031 59,889 $14,417 21,824 83,055 11,327 18,221 17,203 22,587 68,034 28,987 126,644 51,209 23,285 60,356 528,661 007,048 540,405 547,149 665,347 534,951 n'.n, SSI 928,5583 1,159,357s 922,2893 979,1813 1,138,989s 887,328s 993,788:! l,120,7393 Total 1920. Sept. Mar. $18,800 26,579 97,517 14,717 22,003 22,207 29,289 81,407 33,653 152,477 65,604 29,494 71,420 Total 1921. Aug. Feb. • 635,775 Boston3 June. July. Jan. $190,975 $149,379 431,320 407,347 1,278,811 1,102,133 169,752 217,083 209,840 298,073 962,3163 12,129,7253 15,691,020 14,942,024 Boston Total.. 1,467,378 1,205,767 1,499,835 1,208,030 1,261,053 1,493,641 1,171,987 1,308,778 1,009,922 1,295,504 1,666,691 1,275,194 15,923,786 Grand Total. . 2,103,153 1,734,428 2,160,883 1,754,501 1,808,202 2,158,988 1,700,938 1,903,659 1,574,288 1,879,846 2,380,546 1,820,874 22,701,210! 24,312,337 22,339,020 1 2 Manchester not included 3 Portland estimated. in total. Debits of banks which submitted reports in 1920. SCHEDULE 26. Acceptance liability of all member banks in Federal Reserve District No. 1. [000 omitted.] 1921 April June 28 30 $62,274 47,771 December 31 47,585 1 2 1919 1920. May June November Decembec 4 30 15 29 $93,289 88,953 75,759 70,945 March June November December 4 30 17 31 1918 $60,053 73,221 78,378 93,570 May 10 June 29 November l December 31 L917 $67,701 65,831 66,491 61,511 ! May 1 June 20 November 20 December 31 «32,374 45,590 41,290' 05,205 National banks only. Data for this table is obtained from the Calls of the Comptroller for condition of national banks, combined with the Calls of the Federal Reserve Board for condition of member state banks and trust companies. During 1921 but three Calls were issued by the Federal Reserve Board. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 43 SCHEDULE 27.— Acceptance liability of all banks in Federal Reserve District No. 1. Dec. 31,1921. Nov. 15, 1920. Nov. 17, 1919.; Accepted by:— National banks Non-member banks Acceptance corporations and private bankers Total $37,558,000 10,027,000 754,000 6,049,000 $53,479,000 22,280,000 2,172,000 10,193,000 $62,276,000 16,102,000 4,627,000 21,338,000 54,388,000 88,124,000 104,343,000 SCHEDULE 28.—Classes of securities held by Custody Department December 31,1921. Collateral for Class. United States certificates of indebtedness Bonds of foreign governments Commercial paper Total SCHEDULE 29. Held for safekeeping. War loan account. Discounted notes. $5,720,500 8,366,250 3,348,800 1,064,500 21,905,500 $4,315,500 20,920,000 112,666 $12,399,400.00 41,998,650.00 44,887,550.13 952,700.00 1,389,311.69 40,405,550 25,347,500 101,627,611.82 Volume of securities handled by Custody Department. [000 omitted.] Pledged. Withdrawn. Balance at close of- Held for : - War loan account Exchange account Discounted notes For safekeeping Total 1921. 1920. 1921. 1920. 1921. 1920. $240,289 2 992 577^962 661,120 $193,643 27,186 1,037,607 719,728 $246,134 15,400 629,796 589,791 $237,264 14,778 1,094,876 718,943 $40,406 25,348 101,627 $46,251 12,408 77,182 30,298 1,482,363 1,978,164 1,481,121 2,065,861 167,381 106,139 SCHEDULE 30. Operations of Federal Reserve clearing system. (Figures include cash items only.) [000 omitted.] Items drawn on banks in own district. Period. Located in F. R. Bank city. No. Amount. Located outside F. R. Bank city. No. Amount. Jan. 1-Jan. 15 Jan. 16-Feb. 15 Feb. 16-Mar. 15 Mar. 16-Apr. 15 Apr. 16-May 15 May 1(5—June 15 June 16-July 15 July 10-Aug. 15 Aug. 16-Sept. 15 Sept. 16-Oct. 15 Oct. 16-Nov. 15 Nov. 16-Dec. 15 Dec. 16-Dec. 31 340 (154 659 751 652 703 705 695 668 743 740 779 380 299,927 531,319 451,319 537,526 505,811 532,196 539,515 508,546 480,900 550,618 576,987 569,403 312,637 1,552 2,788 2,750 3,300 3,108 3,445 3,320 3,178 3,094 3,304 3,513 3,512 1,831 200,241 340,211 312,344 380,428 350,289 379,946 380,129 356,790 348,262 378,324 401,442 390,345 198,928 Total: 1921.. . 1920. 1919.. . 8,469 7,804 5,942 6,396,704 8,055,207 7,295,405 38,695 33,258 27,427 4,417,679 5,362,447 4,109,154 Items drawn on Treasurer of United States. No. Amount. Items forwarded to other F. R Banks and their branches. No. Total number. Amount. 1921. 1920. 1919. 1921. 1920. 1919. 1,828 3,137 3,247 3,708 3,642 3,644 3,749 3,769 3,548 3,731 3,908 3,872 2,039 1,344 2,719 2,479 2,974 2,903 2,949 3,152 3,171 2,836 3,098 3,512 3,303 1,794 535,009 939,981 832,191 1,002,119 920,319 984,347 994,114 928,285 893,254 998,739 1,047,827 1,026,186 548,974 647,760 1,138,735 1,066,722 1,303,914 1,315,941 1,289,561 1,323,838 1,212,993 1,172,996 1,249,723 1,258,013 1,107,964 639,186 498,199 1,009,222 793,239 1,036,316 955,239 1,005,610 1,181,817 1,220,656 1,014,359 1,147,538 1,252,099 1,222,378 718,132 124 133 148 151 164 81 156 8,002 20,797 25,014 28,838 19,629 22,980 20,771 17,058 17,151 16,321 20,836 19,220 9,482 74 145 148 161 143 169 162 154 160 175 189 197 100 26,839 47,654 43,514 55,327 44,590 49,225 53,699 45,891 46,941 53,476 48,562 47,218 27,927 2,032 3,684 3,670 4,356 4,053 4,479 4,343 4,151 4,055 4,370 4,593 4,652 2,392 1,688 1,457 2,204 246,099 345,998 724,045 1,978 1,303 590,863 963,694 926,200 50,830 66 96 113 144 150 162 661 Total amount. 43,822 11,651,345 36,234 14 727 346 13,054,804 SCHEDULE 31. Number of time items received for collection and amounts collected. Number of coupons received. Number of items received. Totals. Amounts collected. [000 omitted.] 1920. 1921. Month. From Federal Reserve Banks. From member banks. 1921. Total. 7,112 7,517 8,001 8,213 8,759 8,450 9,314 2,380 1,918 1,504 1,070 1,734 1,943 1,499 1,082 2,134 1,545 1,030 1,634 10,997 10,329 11,788 11,950 12,525 12,150 14,080 10,325 15,.818 16,667 15,923 17,873 93,749 21,345 166,431 January. . . February.. March. . . . April May June July August September. October. . . November. December. 2,450 2,22(i 2,561 2,45") 6,155 0,185 7,003 7,819 5,070 6,042 5,471 0,303 5,837 6,925 Total. . 51,337 From Discount Department. 7,!).-,r, 1920. 1921. Total. 102,640 8,220 4,372 6,700 11,306 11,200 15,304 18,321 12,352 13,497 10,443 16,131 18,700 3,090 1,431 1,381 1,669 1,407 1,890 2,428 1,718 2,095 3,025 2,947 9,000 19,217 14,701 18,488 23,310 23,7!) 1 27,514 32,407 28,077 29,315 33,110 32,054 30,573 9,500 7,151 7,757 8,684 9,060 10,712 12,307 11,242 10,092 13,371 13,451 21,454 61,766 50,574 48,662 41,141 53,167 59,132 45,170 39,491 41,774 37,174 37,972 30,628 74,794 91,380 88,091 70,550 09,035 75,397 87,915 83,09!) 05,819 84,093 84,800 72,281 152,732 32,147 319,163 134,787 552,057 949,060 46 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 32.—Treasury certificates of indebtedness redeemed from January 1, 1921, to December 31, 1921. Date of Issue. Description. Loan Certificates:— Series A, 1921 Series B, 1921 Series C, 1921 Series D, 1921 Series E, 1921 Series F, 1921 Series G, 1921 Series H, 1921 June July Aug. Nov. Jan. Jan. Feb. Apr. Tax Certificates:— Series TM, 1921 Mar. Series TJ, 1921 June Series TM2, 1921 July Series TM3, 1921 Sept. Series TS, 1921 Sept. Series TM4, 1921 Oct. Series TJ2, 1921 Dec. Series TD. 1921 Dec. Series TS2, 1921 Mar. Date of Maturity. Redeemed for Cash. Jan. Jan. Aug. May Apr. Oct. July Oct. 3, 1921 $11,648,500 6,314,500 15, 1921 9,052,000 16, 1921 16, 1921 14,531,000 1,500,500 15, 1921 7,564,000 15, 1921 15, 1921 8,365,500 9,123,000 15, 1921 15, 1920 Mar. 15, 1920 June 15, 1920 Mar. 15, 1920 Mar. 15, 1920 Sept. 15, 1920 Mar. 15, 1920 June 15, 1920 Dec. 15, 1921 Sept. 6,445,500 15, 1921 15, 1921 15,081,500 2,786,500 15, 1921 4,490,000 15, 1921 15, 1921 14,872,000 7,427,000 15, 1921 15, 1921 7,412,500 15, 1921 23,853,500 15, 1921 9,858.500 15, 1920 15, 1920 16, 1920 15, 1920 15, 1921 15, 1921 15, 1921 15, 1921 Applied on Tax Payments. Exchanged for New Issues. Total. $11,648,500 6,314,500 9,107,000 14,541,500 1,500,500 7,564,000 8,390,500 25,000 9,123,500 500 $55,000 10,500 S31,000 162,000 27,500 119,000 279,000 157,500 129,000 260,000 87,000 512,000 301,000 61,000 40,500 63,000 61,500 117,500 42,000 37,000 6,991,500 15,544,500 2,875,000 4,649,500 15,214,000 7,646,000 7,659,000 24,155,500 9,982,500 Total Issues maturing in 192] Total issues maturing prior to 1921 160,326,000 1,255,000 1,326,500 162,907,500 288,500 288,500 GRAND TOTAL 160,614,500 1,255,000 1,326,500 103,196,000 SCHEDULE 33.—Subscriptions during the year 1921 to treasury certificates of indebtedness and treasury notes by states. Loan Certificates. State. 1921 Maturity. Connecticut .. . $8,775,000 Maine 1,174,500 80,278,500 Massachusetts New Hampshire 2,114,000 3,088,000 Rhode Island Vermont S8.500 Total 95,518,500 Tax Certificates. Notes 1924 Maturity. Total. $21,268,000 7,284,500 191,329,000 1,910,000 15,766,000 210,000 $6,666,400 2,855,100 72,930,800 817,400 8,309,700 272,100 $46,834,900 12,197,000 441,209,800 6,496,900 33,870,200 682,600 237,767,500 91,911,500 541,292,000 1922 Maturity. 1921 Maturity. 1922 Maturity. $9,178,500 801,500 86,205,500 726,500 6,136,500 77,000 $947,000 82,000 10,466,000 929,000 510,000 35,000 103,125,500 12,969,000 SCHEDULE 34.—Treasury certificates of indebtedness and treasury notes issued in 1921; subscriptions, allotments and method of payment. Allotment, First District. Description. Loan Certificates: Series E, 1921 . Series F, 1921 . . Series O, 1921 . . Series H, 1921. . Date of issue. Date of maturity. Rate. Total subscription First District. Number of j days before final withdrawal of By credit to deposits. war loan deposit account. Method of payment. Total amount. 1921 1921 1921 1921 $5,605,000 50,518,500 19,(511,000 19,724,000 $591,500 24,624,000 11,402,000 14,343,500 Feb. 16, 1922 Aug. 1, 1922 Apr. 1, 1922 43,148,500 50,135,000 9,842,000 21,208,000 21,068,500 2,410,000 4-5% 41% i% 12,969,000 22,092,500 22,082,000 17,619,500 36,765,000 26,054,000 49,120,500 8,651,000 55,383,000 •>¥','» By exchange of other issues. cash. $83,000 75,000 420,000 258,000 $508,500 24,449,000 10,982,000 14,0Sl,500 48 48 37 35 6,500 15,000 420,500 276,500 81,000 20,781,000 20,777,000 2,329,000 37 01 12,912,000 22,066,000 21,070,000 9,101,."00 8,692,000 10,921,500 17,002,500 3,100,500 305,;"00 369,500 43,000 42,000 11,210,500 20,920,000 19,828,000 8,954,500 8,432,000 10,666,500 16,752,500 2,797,000 19,732,000 58 58 02 60 04 04 20,696,000 1,390,000 770,500 1,199,000 147,000 245,000 249,000 250,000 303,500 922,000 22,905,000 69,000,500 22,905,000 37,423,400 440,500 79,500 1,295,800 1,102,200 21,168,700 36,181,700 04 65 541,292,000 281,437,900 1,326,500 9,500,000 270,551,400 Loan Certificates (not acceptable in payment of taxes) 198,643,000 Tax Certificates (acceptable in payment of income and profits taxes) 250,735,000 Treasury Notes (acceptable in payment of income and profits, and estate oi inheritance taxes imposed by the United States) 91,911,000 95,547,500 125,562,000 25,500 781,000 1,014,000 5,488,000 93,908,000 119,293,000 00,328,400 520,000 2,458,000 57,350,400 541,292,000 281,437,900 1,326,500 9,560,000 270,551,400 Jan. Jan. Feb. Apr. May Aug. Nov. 15, 15, 15, 15, 16, 1, 1, 1921 1921 1921 1921 1921 1921 1921 Apr. Oct. July Oct. Tax Certificates: Series TS2, 1921... Series TM, 1922.. Series T.T, 1922.. Series TM2, 1922. ., Series TM3, 1922. Series TS, 1922.. Series TS2, 1922.. Series TJ2, 1922.. Series TD, 1922... Mar. Mar. June Aug. Sept. Sept. Nov. Dec. Dec. 15, 15, 15, 1, 15, 15, 1, 15, 15, 1921 1921 1921 1921 1921 1921 1921 1921 1921 Sept. Mar. June Mar. Mar. Sept. Sept. June Dec. Treasury Notes: Series A, 1924 Series B, 1924. . .' June 15, 1921 Sept. 15, 1921 Series A, 1922. Series B, 1922. . Series C, 1922 . . Total. 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 1921 1922 1922 1922 1922 1922 1922 1922 1922 June 15, 1924 Sept. 15, 1924 51% 41% % 5-2% 5.}% .v,r; $4,000 15,000 6,000 > V C M c 4- 48 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 35. Deposits in duly qualified and designated depositary banks Month. Balance Jan. 1, 1921 January February March April May June July August September October November December Deposits. $24,957,500 10,982,000 32,130,500 14,081,500 20,781,000 40,996,700 Withdrawals. $26,633,934 29,731,500 55,280,200 19,081,500 22,529,000 Total deposits, 1921 . . . $37,292,184 12,268,515 13,348,735 23,169,258 36,204,982 18,587,785 22,417,675 20,614,141 16,600,309 47,672,450 13,701,450 9,401,741 270,551,400 Grand Total 297,185,334 Total withdrawals, 1921. 271,279,225 Balance on deposit, Dec. 31, 1921. $25,906,109 Number of qualified depositary banks at close of business, Dec. 31, 1920 448 Number of banks qualified and designated as depositaries, during 1921 3 Total 451 Number of banks the designation of which as depositaries was cancelled during 1921 8 Number of qualified depositary banks at close of business, Dec. 31, 1921 443 Number of qualified depositary banks the maximum of whose designated deposits was increased in 1921 0 SCHEDULE 36. Coupon interest on United States obligations paid by the Federal Reserve Bank of Boston as fiscal agent of the United States. 1921 Description. No. of coupons handled. Amount. No. of coupons handled. $3,810,071.24 178,041.99 2,118,019.60 9,382.79 399,555.00 11,087,657.54 10,807,328.83 21,201,274.75 1,218,020.25 8,563,394.94 6,700,681.53 542,632.99 625.00 120,622.26 580,809 107,575 470,216 2,094 198,599 1,170,198 1,638,499 2,128,361 34,388 1,347,225 67,978 6,394 $3,150,092.65 397,010.85 1,472,802.69 6,180.21 1,044,328.00 8,826,710.06 8,515,088.79 18,494,715.13 1,369,910.58 8,836,456.49 4,967,482.69 538,702 217,525 341,100 2,081 402,193 924,915 1,658,721 2,647,037 37,547 1,306,904 43,581 14,828 265,275.00 61,563.47 10,611 9,708 66,757,308.71 7,767,169 57,407,616.61 8,140,625 Amount. First Liberty Loan Bonds 3^2% . First Liberty Loan Bonds conv. 4% First Liberty Loan Bonds conv. 4J4% • • First Liberty Loan Bonds 2nd conv. 4M% Second Liberty Loan Bonds 4% Second Liberty Loan Bonds 434% Third Liberty Loan Bonds 4M% Fourth Liberty Loan Bonds 4J4% Victory Liberty Loan Notes 3%% Victory Liberty Loan Notes 4 % % Treasury Certificates of Indebtedness. . . Treasury Notes War Finance Bonds Other United States Coupons Totals 1920 5 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 37. State member banks as of December 31, 1921. City or Town. Bunk. Date Admitt ed. Connecticut New Britain New Haven So. Manchester Waterbury New Britain Trust Company Union and New Haven Trust Company. Manchester Trust Company Colonial Trust Company August 21, 1918 December 8, 1917 December 30, 1918 April 6, 1918 Maine Bangor.. Portland. Sanford. . Merrill Trust Company. Fidelity Trust Company. Sanford Trust Company. March 14, 1918 March 18, 1918 September 9, 1920 Menotomy Trust Company American Trust Company Beacon Trust Company Commonwealth Trust Company Exchange Trust Company Hub Trust Company International Trust Company Liberty Trust Company Market Trust Company Massachusetts Trust Company Metropolitan Trust Company New England Trust Company Old Colony Trust Company State Street Trust Company United States Trust Company Harvard Trust Company Inman Trust Company Fitchburg Bank & Trust Company 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 Company Norwood Trust Company Naumkeag Trust Company Waltham Trust Company Winchester Trust Company Worcester Bank & Trust Company November 8, 1918 August 31, 1917 January 15, 1918 February 12, 1917 September 14, 1920 January 21, 1921 June 9, 1917 May 1, 1918 January 13, 1919 December 10, 1920 December 4, 1917 December 10, 1918 August 24, 1915 1918 January 1918 April 1918 March 1921 May 1917 July 1919 June 1919 April 1918 January February 27, 1918 September 25, 1918 June November August September April May December Industrial Trust Company Rhode Island Hospital Trust Company Union Trust Company November 9, 1917 March 13, 1918 September 13, 1918 Massachusetts Arlington Boston Do Do Do Do Do Do Do Do Do Do Do Do Do Cambridge. . Do. Fitchburg. . . Gloucester. . . Greenfield.. . . Holyoke Lawrence. . . . Lynn .New Bedford. Newton Norwood. . . . Salem Waltham.... Winchester. .. Worcester. . . . Rhode Island Providence. Do. Do. Change in membership of national banks—1921. SCHEDULE 38. City. Boston, Mass Bucksport, Maine Machias, Maine Camden, Maine Hartford, Conn 5, 1919 5, 1917 11, 1917 25, 1918 3, 1919 29, 1917 26, 1917 Name of Bank. Date of Change. Reason. Boston National Bank. . . January 28, 1921. . New Bank. Bucksport National Bank March 1, 1 9 2 1 . . . . Made Branch of Merrill Trust Co., Bangor, Maine Do. Machias National Bank. . March 3, 1 9 2 1 . . . . Megunticook Nat. Bank. . November 18, 1921 Absorbed by Security Trust Co., Rockland, Maine Colonial National Bank.. March 14, 1921. . . Absorbed by Phoenix N a t i o n a l Bank, Hartford, Conn. 49 50 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. Member and non-member eligible state banks compared.1 SCHEDULE 39. 1 Data compiled from latest available reports of State Bank Commissioners. SCHEDULE 40.—Member banks authorized to accept drafts and bills of exchange up to 100 per cent of their capital and surplus. City or Town. Bank. Connecticut Hartford Do New Haven . . . Norwich Hartford-Aetna National Bank Phoenix National Bank First National Bank Thames National Bank Maine Portland Do Canal National Bank. . . Portland National Bank. Massachusetts Boston Do Do Do Do Do Do Do Do Do Do Do Do Dedham Fall River Fitchburg New Bedford . . . Do. ... Springfield Worcester American Trust Company Beacon Trust Company Commonwealth Trust Company First National Bank Fourth-Atlantic National Bank International Trust Company Merchants National Bank National Shawmut Bank National Union Bank Old Colony Trust Company Second National Bank State Street Trust Company Webster & Atlas National Bank Dedham National Bank Massasoit-Pocasset National Bank Safety Fund National Bank First National Bank New Bedford Safe Deposit & Trust Co. Springfield National Bank Merchants National Bank Rhode Island Providence.. . Do Do Do Blackstone Canal National Bank. Merchants National Bank National Bank of Commerce Providence National Bank Capital and surplus as of Dec. 31,1921. Date of authorization. October July August August 29,1917 1, 1918 3, 1920 5, 1919 1,000,000 600,000 July June 3, 1919 24, 1919 3,500,000 2,000,000 2,500,000 33,000,000 4,000,000 4,000,000 5,000,000 20,000,000 2,000,000 16,000,000 5,000,000 4,500,000 2,000,000 300,000 1,000,000 600,000 1,000,000 700,000 1,000,000 2,000,000 June S4,000,000 1,500,000 1,700,000 1,550,000 1,000,000 2.000,000 1,700,000 1,000,000 8, 1921 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 27, 1916 January 25, 1918 July 28,1916 April 11,1918 November 13, 1917 October 5, 1917 December 18, 1919 September 12, 1919 January 25, 1918 May 4, 1916 May July 12,1917 November 7, 1918 December 24, 1919 December 17, 1918 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 51 S C H E D U L E 41. — Member banks accepting drafts and bills of exchange in amounts not to exceed 50 per cent of their capital and surplus. City or Town. Capital and surplus as of Dec. 31, 1921. Bank. Connecticut Meriden. . . New Haven. Home National Bank Merchants National Bank. $600,000 900,000 First National Bank First National Bank Rockland National Bank. 100,000 500,000 250,000 Maine Bar Harbor. Bath Rockland. . . Massachusetts Adams Boston Do Do Do Do Do Do Do Do Cambridge Fairhaven Fall River Gloucester North Adams. . Orange Springfield Worcester First National Bank.... Boylston National Bank. Citizens National Bank. Hub Trust Company. Massachusetts Trust Company Mattapan National Bank Metropolitan Trust Company National Rockland Bank New England Trust Company United States Trust Company Manufacturers National Bank National Bank of Fairhaven Metacomet National Bank Cape Ann National Bank North Adams National Bank Orange National Bank Chapin National Bank Worcester Bank and Trust Company. New Hampshire Concord First National Bank. Rhode Island Providence. Do. Do. Mechanics National Bank National Exchange Bank R. I. Hospital Trust Company Vermont Burlington. St. Albans. Howard National Bank. Welden National Bank. SCHEDULE 42.— Non-member 400,000 600,000 1,250,000 7,000,000 700,000 150,000 accepting banks and other acceptors in this district. Bank. Federal Trust- Company, Boston, Mass Union Trust Company, Springfield, Mass 120,000 1,100,000 1,125,000 560,000 1,500,000 230,000 900,000 800,000 3,000,000 2,000,000 230,000 160,000 1,000,000 250,000 450,000 200,000 750,000 2,500,000 Capital and surplus as of Dec. 31,1921. $1,300,000 1,500,000 Banker. Brown Brothers & Company, Boston, Massachusetts. First National Corporation, Boston, Massachusetts. Lee, Higginson & Company, Boston, Massachusetts. J. B. Moors & Company, Boston, Massachusetts. Henry W. Peabody & Company, Boston, Massachusetts. Shawmut Corporation, Boston, Massachusetts. 52 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 43.—Banks authorized to exercise fiduciary powers under the Federal Reserve Act. [As of Dec. 31, 1921.] NOTE.—The Federal Reserve Board has authorized the National banks of this district listed below to exercise one or more fiduciary powers as follows: (1) Trustee (2) Executor (3) Administrator (4) Registrar of Stocks and Bonds (5) Guardian of Estates (6) Assignee (7) Receiver (8) Committee of Estates of Lunatics (9) Any other fiduciary capacity in which State banks, trust companies or other corporations which come into competition with National banks are permitted to act under the laws of the State in which the National bank is located The numerals opposite the name of each bank, which refer to the list given above, indicate the power or powers it is authorized to exercise. City or town. Bank. Powers granted. Connecticut Ansonia Bristol Hartford Do Do Meriden Middletown Naugatuck New Britain New Haven Do. Do. Do. * Do. New London . . . . . ' Do. Norwich Torrington Wallingford Waterbury Do. Do. Ansonia National Bank Bristol National Bank First National Bank Hartford-Aetna National Bank Phoenix National Bank Home National Bank Middletown National Bank Naugatuck National Bank New Britain National Bank First National Bank Merchants National Bank National Tradesmen's Bank New Haven Bank, N. B. A Second National Bank National Bank of Commerce New London City National Bank Thames National Bank Torrington National Bank First National Bank Citizens National Bank Manufacturers National Bank Waterbury National Bank 1 to 9 1 to S 1 to 9 1 to 4, 9 1 to 9 4 1 to 4 1 to 4 1 to 9 1 to S 1 to 8 1 to 4 1 to 9 1 to 9 1 to 5 1, 2, 3, 5, 7, S, 9 1 to 9 1 to 7 1 to 9 1 to 7, 9 1 to 9 1 to 9 Maine Auburn Bangor Bar Harbor Bath Belfast Biddeford Damariscotta Lewiston Norway Portland Do Do Waterville National Shoe and Leather Bank First National Bank First National Bank Bath National Bank City National Bank First National Bank First National Bank Manufacturers National Bank Norway National Bank Canal National Bank First National Bank Portland National Bank Ticonic National Bank 1 to 7 1, 2, 4 1 to 4 1 to S 1 to 8 1 to 9 1, 2, 3, 5, G 1,2,4 1 to 8 1 to 9 1, 2, 4 1, 2, 4 1 to 4 Massachusetts Adams Do Amherst Attleboro Beverly Boston Do Do Do Do Do Do Do Do Do First National Bank Greylock National Bank First National Bank First National Bank Beverly National Bank Boylston National Bank Citizens National Bank First National Bank Fourth-Atlantic National Bank Merchants National Bank National Shawmut Bank National Union Bank Peoples National Bank Second National Bank Webster & Atlas National Bank 1 to S 1 to 7, 9 1 to 9 1 to 9 1 to 4 1 to 9 1 to 9 1 to 7, 9 1 to 9 1 to 9 1 to 9 1 to 4 1 to 7, 9 1 to 9 1 to 9 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 53 SCHEDULE 43, Continued.—Banks authorized to exercise fiduciary powers under the Federal Reserve Act. [As of Dec. 31, 1921.] City or town. Bank. Massachusetts—Continued Brockton Do Edgartown Fall River Do Do Fitchburg Foxboro Gardner Gloucester Great Barrington Greenfield Haverhill Do Do Holyoke Do Hudson Lawrence Leominster Do Lowell Do Lynn Do Do Marlboro Do Methuen Milford New Bedford Do Newburyport North Adams Northampton Pittsfield Do Plymouth Provincetown Reading Salem Shelburne Falls Southbridge Springfield Do Do Do Tisbury Turners Falls Uxbridge Wareham Watertown Webster Woburn Worcester Do Yarmouthport Brockton National Bank '. . . . Home National Bank Edgartown National Bank Fall River National Bank Massasoit-Pocasset National Bank . Metacomet National Bank Safety Fund National Bank Foxboro National Bank First National Bank Cape Ann National Bank National Mahaiwe Bank First National Bank Essex National Bank First National Bank Merrimack National Bank City National Bank Holyoke National Bank Hudson National Bank Bay State National Bank Leominster National Bank Merchants National Bank Appleton National Bank Old Lowell National Bank Central National Bank Manufacturers National B a n k . . . . National City Bank First National Ba Peoples National Bank. . . . National Bank of Methuen. Home National Bank First National Bank. Merchants National Bank. . . Merchants National Bank. . . North Adams National Bank. Northampton National Bank. Agricultural National Bank. Pittsfield National Bank . . Plymouth National Bank First National Bank First National Bank. Merchants National Bank Shelburne Falls National Bank. . . Southbridge National Bank Chapin National Bank Chicopee National Bank Springfield National Bank Third National Bank Martha's Vineyard National Bank . Crocker National Bank Blackstone National Bank National Bank of Wareham Union Market National Bank. . . . First National Bank Woburn National Bank Mechanics National Bank Merchants National Bank First National Bank of Yarmouth . New Hampshire Berlin Claremont. . . Concord Do Do Dover Do Keene Do Manchester. . . Do Do Milford City National Bank Claremont National Bank. . . First National Bank Mechanicks National Bank. . National State Capital Bank. Merchants National Bank. . . Strafford National B a n k . . . . Ashuelot National B a n k . . . . Keene National Bank Amoskeag National Bank. . . Manchester National Bank. . Merchants National Bank. Souhegan National Bank Powers granted. to 9 to -I to 3 to 9 to 9 to «) to 9 to 9 to 9 to 9 to 9 to 9 to 1 to 4 to 4 to 4 to 9 to 9 to 4 to 7, 9 to 9 to 8 to 9 to o, 7 to 4 to 9 to 8 to 4 to 9 to 9 to 8 to 9 to 9 to 9 to 4 to 4 to 9 to 4 to 9 to 7, 9 to 9 to 9 to 9 to 8 to !) to 8 to 7, 9 to 4 to I TO I to 4 2. 3, G, 7, 9 to 4 to 9 to 9 1 1 to 4 1 to 9 1,4 1, 4 1 to 3 1 to 4 1,4 1 to 4 1,4 1 1, 4 i 1, 4 54 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 43, Concluded.—Banks authorized to exercise fiduciary powers under the Federal Reserve Act. [As of Dec. 31, 1921.] City or town. Bank. Powers granted. New Hampshire—Continued Nashua Do Newport Wolfeboro Indian Head National Bank Second National Bank Citizens National Bank Wolfeboro National Bank 1 to 3 1,4 1, 4 1, 4 Rhode Island Newport Aquidneck National Bank 1 to 4 Vermont Barre Bellows Falls Bennington Do Brandon Brattleboro Do Montpelier Poultney Rutland Springfield St. Albans Windsor Peoples National Bank National Bank of Bellows Falls County National Bank First National Bank First National Bank Peoples National Bank Vermont National Bank First National Bank Citizens National Bank Baxter National Bank First National Bank Welden National Bank State National Bank 1 to 9 1 to 3 1 to 9 1 to 9 1 to 4 1 to 9 1 to 8 1 to 4 1 to 4 4 1 to 4 1 to 4 1 to 3 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. Sales of treasury savings stamps and certificates. SCHEDULE 44. 1921.1 State. New Hampshire Rhode Island Vermont Maine Total 1 1920. 1919. 1918. $178,251 620,448 206,427 186,779 59,395 101,333 $349,708 1,490,856 338,445 577,937 103,367 174,830 $1,399,256 3,383,230 627,776 1,264,510 275,250 637.504 $15,667,194 24,786,877 5,252,891 5,917,095 5,120,236 7,929,763 1,352,633 3,035,143 7,587,526 64,674,056 Estimated. SCHEDULE 45. Commercial failures in the First District and in New England. (As reported by R. G. Dun & Co.) 1921. State. Connecticut Except Fairfield Co Maine Massachusetts New Hampshire Rhode Island... . Vermont 1919. 1918. Liabilities. No. Liabilities. No. Liabilities. No. Liabilities. 395 $10,128,897 136 2,873,293 828 24,208,619 41 486,465 150 1,255,632 31 361,724 173 74 443 36 81 19 $5,554,590 1,373,049 10,970,133 252,096 339,346 429,044 126 85 427 20 71 15 $2,004,213 717,703 7,402,927 165,279 999,877 594,239 272' 135 739 38 124 36 $4,167,7091 1,516,696 13,010,340 243,919 683,456 263,240 39,314,630 826 18,918,258 744 11,884,238 5,314,471 57 1,415,834 68 928,249 44,629,101 883 20,334,092 812 12,812,487 1,344 19,885,360 No. Total, 1st Dist. 1,581 Fairfield Co., 121 Conn Total, New E n g l a n d . . . . 1,702 1 1920. Includes Fairfield County, Conn. 55 In ON Discount rates, Federal Reserve Bank of Boston, SCHEDULE 4G. Commercial paper Member banks collateral notes. Agricultural and live stock paper. Trade acceptances. Commodity paper. 91 days to six months. 90 days or less. 90 davs or less. 1917-1921. Secured by Government war obligations. Secured by United States certificates of indebtedness. Bankers' acceptances 90 days or less. 90 days or less. Date. 1G to 90 days. 15 days or less. 1917. March 2 1 . .. . August 1 October 23 . . . December 5 . . December 12 . 1918. January 7. .. , April 8 1919. November 4. December 12. 1920. January 3. . . January 2 3 . . February 27. June 4 1921. April 15 July 21 September 23 November 4. 4 A 1 •I •1 4 S« 31 43 'June 27, 1917.—Trade acceptances under 91 days 4 per cent. Rate to apply on loans secured by United States Treasury notes. 31« 31 « 1G to 90 days. ••'•': 4 2 October 1, 1918, to February lo, 1919, 4 per cent on customers' notes carrying 3 April 12, 1919, when secured by bonds of War Finance Corporation, 15 days or 4 Rate discontinued. 6 Customers of non-member banks 4 per cent. 6 Trade acceptances 15 days or less 4 per cent. 7 15 days. 4 4 I 4 •U- 41 43 •n 43 4J 43 4M1 43 •l I 5 51 6 .-,',• 5 41 -I' 5 ' 4}' coupon rate of interest and secured by 4th Liberty Loan Bonds. less 5 per cent—10 to 90 days 5J per cent. Money rales in Boston, 1921.l SCHEDULE 47. Month. Time paper .secured. Brokers' demand Discounted. Purchased. loans. 90 days or under. Over 90 days. 7 -8 7 -8 71-8 6f-8 7J-8 7 -71 61-7 6 -6} 61-61 6 -61 6 -61 51-61 January February March April May June July 7-8 7 7 7 7 7 8-7 7-8 7-8 7J-8 6i-8 7J-8 7-71 61-7 August September October November G G o J-6 51 6 —61 (i -(i JSf—(ii G -Gt December 5 J- Period ending the 15th of each month. Commercial paper. 5}-6} Over 90 days 90 days or under. 90 days. or under. 6 -8 -71 -71 1-7 i 1-71 1-7 7 6 -7 1-7 1-61 51-6 (i - 8 6 -71 (5 - 7 J 61-8 G J-7 J 7 -71 6i-7 6 -7 61-7 o.'.-7 51-6} 5^6 7^-8 71-8 7J-8 71-8 61-8 61-71 61-71 0 -61 5J-61 5}-61 5 -6 5 -5} Bankers' acceptances unendorsed. Bank borrowings. Year money. Town notes. Over 90 days. 71-8 7J-8 71-8 71-8 7 -8 84-71 61-71 6 -61 ")}-(>.; 51-61 5 -6 5 -51 5i-6l 5J-01 5}-Gi 51-61 5J—5 J 51-6 5i-5J 5 -51 41-51 41-5 41—4J 41-41 G -7 G -7 6 -71 6 -7 7 7 7 G -6} 6 -61 G 7 7 7 7 -7} -71 -71 -71 61-71 64-71 6f-7 6 -61 6 -61 6 5 -5} 5J-O2 5 i-5 J H 5i-7 5 i-OJ 51-5 i 4 3-51 4i-5| 4 -5J Loans secured by U. S. war obligations. G -7 6 -7 5}-7 6 -7 61-7 6 }-7 G -7 6 -61 G -7 6 -61 5^-G* 5 -G 58 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 48. Number of officers and employees classified by departmental functions, December SI, 1921, and December 31, 1920. Employees. General Departmental Functions. ALL DEPARTMENTS Officers. Fe- Total. Male. maLe. Total 1921. Total 1920. 776 393 327 720 734 e 16 14 SO 32 General executive and overhead 2 1 5 4 2 4 2 1 2 5 2 1 1 2 4 1 7 7 2 3 1 4 2 7 9 4 5 1 10 812 S53 665 675 663 5 1 1 1 1 1 64 29 145 10 28 5 26 1 2 2 21 97 66 11 1 6 1 2 8 3 91 127 212 22 47 16 48 2 8 3 77 132 215 27 48 19 23 2 7 3 1 49 67 106 107 180 1 2 47 2 57 104 3 104 3 177 1 16 S 19 SO 19 1 2 14 3 2 17 3 17 3 16 Financial statistics Industrial statistics Credit Operating Functions General executive and overhead Transit Accounting and expense Custody Collection Investment Wire transfer Note teller's Fiscal Agency Functions General executive and overhead . All other General executive and overhead All other OOOlM 14 Federal Reserve Agent's Functions 2 7 9 4 5 85" 126 211 21 46 15 48 MONTHLY AVERAGE RESERVES, LOAN, CIRCULATION FEDERAL RESERVE BANK AND DEPOSITS OF BOSTON (Begon banking operations November 16,1314) 350 1915 300 _ 1916 1917 1918 1919 1920 1921 60 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. CHART B. FEDERAL RESERVE BANK OF BOSTON MOVEMENT OF EARNING ASSETS DURING 1920 AND 1921 MILLIONS OF DOLLARS 80 MILLIONS OF DOLLARS UNITED STATES SECURITIES so A , n K A^y^yy%. V a • ' • ' • / > \ • WkWZyW/, 1920 yyy/yy • y^fcy?. 1921 A - Paper secured by U. 5. Government oblication« discounted for banks in district. B - Total paper discounted for banks in district. C - Total discounted paper held. 3pace between linos B and G represents paper discounted for other Federal Reserve banks ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. CHART 61 C. FEDERAL RESERVE BANK OF BOSTON DEPOSITS, F. R.NOTE CIRCULATION, CASH RESERVES, AND RESERVE RATIOS, 1920-1921 PER CENT •ER C E N T ACTUAL RESERVE RATIOS ADJUSTED A* 80 70 V" A/ \_. :7 ^ \ / 60 50 1 MILLIONS OF DOLLARS MILLIONS OF DOLLARS DEPOSITS 150 100 >23 50 ! 400 r 350 300 ^^ 150 100 400 . R NOTE CIRCULATION 350 — l i i1 #; 1 | ii . i # M m ma m mw< m IS :;% % 500 DEPOSIT AND F. R.NOTE LIABILITIES,!, AND TOTAL RESERVES,"C 1920 1921 Adjusted percentages are calculated after reducing or Increasing reserves held by the amount of -•cconraodation received from or extended to other Federal Reserve banks. The deposit curve Is based on "net deposits" up to Uarch 11,.1921, and on "total deposits" thereafter. FRASER Digitized for i 62 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. CHART D. BOSTON 1915 8 1916 MONEY 1917 MARKET 191© 1919 1920 1921 l \ 7 s I 6 'V * 5 ^ 4 • j 1\ \ V ^ 1 if i f"^" i : ! ' s 1 • \ | \ \ 3 \ 2 NMeTYOAYMATumtnma 1/s count Rafe, #.3ank of Boston. •>/cers' C'ommerc/a/ Paper. n/rer-s1 ^Acceptances. a v5 CY'f's of / n de Ate cfne^^ 1 1 O CHART E. MONTHLY AVERAGE IOO I9I6 I9I9 RESERVE I920 RATIOS I92I 9O 6O 50 40 30 20 10 0 / /Zeserve vSyvStern Re^erve Bank of Bo ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 63 CHART F. ANALYSIS OF Bl LLS HELD FEDERAL RESERVE BANK OF BOSTON 1916 1921 1920 1919 23O 2OO i i 1 i i IOO o « \ ft V A I5O Y\A 1 V \ j v \ \ V SO \ O V f 5O / A V> ! —r-^. L \ V \ V 1 IOO — T J . CHART G. CLASSIFICATION FEDERAL 250 Old J3F BILLS RESERVE BANK 1313 OF 192O A- 200 /V A/v .'* / 0100 50 -A-' J V A J\ /3<s/4(asaf f/Ksf y^vAr of eve/? /y?o/rf/}). • •••——-•• 3///s etf and u f //? ope HELD BOSTON 1921 A/\ • \ \ V. ~^ \— 64 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. CHART H. ANALYSIS OF LOANS TO MEMBER BANKS FEDERAL 2OCL 1916 RESERVE 19 19 BANK OF BOSTON 920 1921 i5o: Loan /o BanAj /n Boston , Loon /o Oi/fj/c/e SanfctS Data as of f i r s t of each month IOL- CHART I. ANALYSIS OF MEMBER BANK RESERVE MONTHLY AVERAGES FEDERAL RESERVE BANK OF BOSTON 1916 1919 1920 http://fraser.stlouisfed.org/ 3O Federal Reserve Bank of St. Louis _ _ _ DEPOSITS 1921 Tofa/ Me/n&er 3anA /Ze^erye Depas/fc /fe^erve Depos/te of Ban As /n rye Depo-s/te of Ouf-s/de ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 65 CHART J. RATE OF MANUFACTURING NEW 1919 ACTIVITY ENGLAND 1920 192 1 1922 11 O '*^»««*«l^ IOO ^V A v e r a g e R a t e of M a n u f a c t u r i n g A c t i v i t y during p r e v i o u s p e r i o d o f pr os peri ty 9O SO k 7 0 6O ^ ,n ° V/ AO 3Q Average daily rate of manufacturing activity during period from July, 1919, through June, 1920 =100. CHART K. NET SALES TWENTY-SIX 2 5 O Jan. NEW ENGLAND DEPARTMENT STORES 1920-1921 Apr. May June July Aug. Sept. Oct. Feb. Mar. 2OO I5O 19ao 1 1921 1 \ IOO %// 50 r Nov. Dec. f j
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