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SIXTH ANMJAL REPORT
of the

Federal Reserve Bank
of Boston
FOR THE YEAR ENDED
DECEMBER 31, 1920




BOSTON, MASS.

SIXTH ANNUAL REPORT
of the

Federal Reserve Bank
of Boston




FOR THE YEAR ENDED
DECEMBER 3 1 , 1920

BOSTON, MASS.

LETTER OF TRANSMITTAL.
BOSTON, MASS.,

March 1, 1921.

SIR:

I have the honor to submit herewith the Sixth Annual Report of the
Federal Reserve Bank of Boston covering the operations of that bank
for the period from January 1, 1920, to December 31, 1920.
Respectfully yours,
FREDERIC H.

CURTISS,

Chairman and Federal Reserve Agent.
Hon. W. P. G. HARDING,

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




TABLE OF CONTENTS

Page

Officers and Directors
Introduction
Review of Industrial Conditions
Review of Banking Conditions
Statement of Condition
Financial Results of Operations
Loan and Discount Operations
Discount Rates
Bankers' Acceptances
Trade Acceptances
United States Securities
Reserve Position
Deposits
Currency
Check or Transit Department
Collection Department
Relation to Banks and the Public
Credit Department and Bank Examinations
Internal Organization
Banking Quarters
Federal Reserve Society
Fiscal Agency Department
Certificates of Indebtedness
Government Savings Securities
Conclusion

5
7
10
13
14
14
15
16
17
18
19
19
20
21
21
22
22
23
24
24
25
26
26
27
27

SCHEDULES.

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

Comparative balance sheet
Income and expense
Distribution of earnings
Discount and Loan Transactions
Average holdings, earnings and average rate of earnings, of total earning assets
Reserve position on the first of each month, 1920
Transactions with other Federal Reserve Banks
Summary of weekly transactions in the gold settlement fund with other
Federal Reserve Banks during 1920
Currency transactions
Federal Reserve bank notes aggregate as of December 31, 1920
Federal Reserve notes issued by Federal Reserve Agent
Federal Reserve notes issued and retired by denominations
Movement of Federal Reserve notes between districts, 1919 and 1920
Available supply of Federal Reserve notes on December 31, 1920
Amount of checks handled by the Transit Department
Custody department—Volume of securities handled
Custody department—Character of securities held December, 1920
Number of time items received for collection and amounts collected
Certificates of indebtedness sales and payments.
Subscriptions to certificates of indebtedness classified by states




3

29
30
30
31
32
32
33
33
34
34
34
35
35
36
36
37
37
37
38
39

4

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
Page

21. United States certificates of indebtedness redeemed from January 1, 1920 to
December 31, 1920
22. Items of interest from the schedules of this and other reports in connection
with the fiscal operation of the United States in this district, 1920
23. Sales of Treasury savings stamps and certificates
24. Liberty loan conversions
25. Coupons of United States obligations redeemed, 1920
26. Change in membership of national banks
27. List of member trust companies
28. Member and non-member eligible State banks compared
29. Classification according to nature of business of unsecured loans of $100,000
and over as of December 23, 1920
30. Amounts due and loans to member banks by States, December 31, 1920 and
1919
31. Reserves of national banks in New England as reported by the Comptroller
of Currency
32. Comparison of loans and deposits of Boston and country banks
33. Comparison of items reported by member banks in selected cities on the
first Friday of each month, 1920
34. Acceptance liability of national banks in District No. 1
35. Acceptance liability of all banks in District No. 1
36. Member banks authorized to accept drafts and bills of exchange up to 100%
of their capital and surplus
37. Other accepting member banks
38. Non-member accepting banks and other acceptors in this district
39. Banks granted fiduciary powers under the Federal Reserve Act
40. Discount rates
41. Money rates in Boston, 1920
42. Debits to depositors' accounts by the Clearing House banks in the larger
cities of this district
43. Permits for new construction in the leading cities of New England
44. Imports and exports through the port of Boston, 1920
45. Commercial failures in New England
46. Number of employees in the various departments December 31, 1920, and
December 31, 1919

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

CHARTS.

A. Cash reserve held by Federal Reserve Bank against deposit and note liability
B. Percentage of cash reserve actually held against combined deposit and note
liability
C. Adjusted percentage of reserve against deposit and note liability
D. Monthly average reserve ratio
E. Reserve accounts of member banks carried in Federal Reserve Bank
F. Federal Reserve notes in actual circulation
G. Bills discounted and bought eliminating transactions with other Federal
Reserve Banks
H. Holdings of acceptances purchased in the open market
I. Retail Trade Conditions in 1919 and 1920 as reflected by 8 Boston department stores
J. Fluctuations in the cost of living and price indices 1914-1920

57
58
59
60
61
62
63
64
65
65

EXHIBITS.

A. Table showing movement of principal earning assets, gold and cash reserves,
Federal Reserve note and net deposit liability, and reserve percentage of
the Federal Reserve Bank of Boston during 1920
68-69
B. Chart showing movement of earning assets, Federal Reserve Bank of Boston
70
C. Chart showing net deposit liability, Federal Reserve note circulation, cash
reserves and reserve ratios, 1920
71




FEDERAL RESERVE BANK OF BOSTON
OFFICERS AND DIRECTORS

1920

Officers
CHARLES
CHESTER
WILLIAM
WILLIAM
KRICKEL

A. MORSS, Governor.
C. BULLEN, Deputy Governor.
W. PADDOCK, Deputy Governor.
WILLETT, Cashier.
K. CARRICK, Secretary

FREDERIC H. CURTISS, Federal Reserve

Agent.
CHARLES F. GETTEMY, Assistant Federal

Reserve Agent.
HARRY F. CURRIER, Auditor.

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

Class and
Group
A 1 THOMAS P. BEAL,
A 2 F. S. CHAMBERLAIN,
A 3 EDWARD S. KENNARD,
B 1 PHILIP R. ALLEN,
B 2 EDMUND R. MORSE,
B 3 CHAS. G. WASHBURN,
C

FREDERIC H. CURTISS

C

ALLEN HOLLIS,

C

JESSE H. METCALF,




Term

Expires

President, Second National Bank,
Cashier, New Britain National
Bank,
Cashier, Rumford National Bank,
Paper Manufacturer,
Bird & Sons,
Treasurer, Vermont Marble Co.,
Director, Wire Goods Co.,
Chairman,
Vice-Chairman, Lawyer,
President, Wanskuck Co.,
ARTHUR H. WEED, Counsel.
Member of Advisory Council

PHILIP STOCKTON,

President, Old Colony Trust Company.

Boston, Mass.

1923

New Britain, Ct. 1922
Rumford, Me. 1921
E. Walpole, Mass. 1923
Proctor, Vt.
1922
Worcester, Mass. 1921
Boston, Mass.
1923
Concord, N. H. 1921
Providence, R. I. 1922




NEW BUILDING OF THE FEDERAL RESERVE BANK OF BOSTON
PEARL, FRANKLIN AND OLIVER STREETS

SIXTH ANNUAL REPORT OF THE FEDERAL
RESERVE BANK OF BOSTON.
INTRODUCTION.
The great business activity which marked the last half of the year 1919
continued well into the year 1920 bringing with it a new high level of
prices, followed in the late Spring by a slowing down in industry and a
decline in commodity prices which continued to the end of the year,
prices declining from 25 to 30 per cent, on an average, leaving accumulations of stocks of all kinds of merchandise in the hands of the merchant and the manufacturer. New England, as well as other parts of
the country, had the same experience with these fluctuations in commodity prices as was common with the rest of the world, and the policies of the Federal Reserve Bank of Boston have been dictated by the
effort to minimize the financial results of these extreme fluctuations in
the business of this district as far as it was possible so to do.
The officials of the bank realized the dangerous conditions which
were developing early in the year and in January established a general
increase in discount rates' as a warning to its member banks against
further expansion and urged contraction where excessive credit lines
had been granted. The interference with traffic through heavy snows
and railroad embargoes soon emphasized the possibility of overproduction in the district, and this advance in discount rates should
have been taken as a warning by business men as well as by the banks
that conditions were getting critical, but these signs were not apparent to some business men who saw only prolonged prosperity ahead.
Since these increases in discount rates did not appear to be effective a
second general increase in rates was made on June 4, when the rates
on commercial paper were advanced to 7 per cent. At the beginning
of the year 1920 the loan of the Federal Reserve Bank of Boston, owing
to discounts made in this district, was about at its peak,' standing at
$289 millions, of which amount it had been necessary to rediscount
some $60 millions with other Federal Reserve Banks, largely those in
the South and West, while the bank's adjusted reserve then stood at
27 per cent.; but, through the co-operation of the heads of some of the
large banks in the district, pressure was brought on borrowers in specu> See Schedule No. 40.
> See Chart G.



8

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

lative lines of merchandise to reduce their inventories and prepare for
a decline in prices. These arguments were not listened to with any
degree of willingness in the early part of the year but, as time went on,
it became more and more apparent that prices were too high, and probably the business men of the First Federal Reserve District realized as
early as those in any other part of the country that a change was coming. The result was that the loans of member banks at the Federal
Reserve Bank began to decline, until in August they were reduced to
approximately S120 millions. The situation was greatly helped by the
liquidation of loans in the banks secured by Government obligations,
many Liberty Loan Bonds being sold even at the prevailing low prices,
and loans against them paid off by those who had borrowed to make
subscription for the Bonds.
The pressure of declining prices became very severe on the business
community in the Fall of the year when markets for nearly all kinds of
commodities became demoralized to such an extent that it was almost
impossible to sell goods and, therefore, impossible to further liquidate
loans to an appreciable amount. This condition was aggravated by the
extensive movement for the cancellation of orders, a movement which
was more widespread than ever before in an effort to obtain relief from
contracts which had been made at prices too high to allow goods to be
sold for a profit. In fact it appeared to become quite an ordinary
business request to have contracts which had been entered into in all
seriousness and good faith by both parties either cancelled or modified.
The result of this movement became almost disastrous because it led
to manufacturers not only being loaded up with stocks of raw material
which they had purchased to complete orders, but also with finished
goods which they had supposedly sold but which had been thrown back
on them, making in many cases a burden almost impossible to carry.
By this process, when the requests for cancellations were successful,
manyfirmsavoided some losses which they would otherwise have incurred,
but they probably suffered fully as much or more because their own goods
were in turn thrown back on them. It was an unfortunate demonstration of the weakness of the moral obligation of contract, and it is to be
expected as a result of this experience that firms will take care to make
their contracts for sales more binding in legal form than they have been
hitherto.
At the time the rate of discount on commercial paper was raised in
June to 7 per cent., the rate of discount on notes secured by Government bonds was fixed at 6 per cent, and on notes secured by Certificates
of Indebtedness at 5J/2 per cent. From that date no change was made
in the discount rates during the remainder of the year.
The decline in the demand for goods, caused by the fall in commodity
prices, resulted in the shutting down to a greater or less extent of most




ANN'UAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

9

of the textile mills and also of the boot and shoe factories in New England; in fact, this movement was quite general in all the industries.
In the Connecticut brass mills, for instance, the curtailment of production was quite severe, the result being that many operatives worked
only part time in the last six months of 1920. The latter part of the
year a movement was started for a reduction of wages and, while it did
not attain great proportions before the end of the year, the tendency
toward lower wages has been plain and probably will result in wage
reductions for a great number of people early in 1921.
There were no long term bonds issued by the Government during
1920 but Certificates of Indebtedness were offered' from time to time,
in order to carry the floating debt of the Government, amounting to
about S3851 millions. As large amounts of these Certificates were made
payable on the dates when taxes were due, the total amount of this
floating debt was reduced considerably on these dates, but new issues
soon increased the amounts again to about the previous level. The
offerings of the Federal Reserve Bank of Boston to the New England
banks were in the usual proportion to previous issues of Certificates,
but the banks did not buy them freely, with the result that this bank
was not able to place its full quota in a number of issues. This reflected
the feeling in New England that it was necessary for people to conserve
all of their resources in order to liquidate their bank loans, and a change
did not come in this feeling until the last issue of Certificates was offered
on December 15th, when the quota of the Federal Reserve Bank of Boston was about S42 millions, while it received subscriptions for about
S49 millions. To be sure, these were offered at attractive rates—viz.
5-54 and 6 per cent., but similar rates had not attracted subscriptions
earlier in the year, and, therefore, the liberal subscriptions received for
this issue seemed plainly to indicate an easier condition and to foreshadow a probable easing of interest rates early in the year.
During the latter part of the year, country banks in this District were
comparatively small borrowers at the Federal Reserve Bank and the
number of borrowing banks was reduced from 267 on January 1, 1920, to
slightly over 230 on December 31, 1920. Most of the borrowings of
the country banks were made on Government obligations because of
the lower rate of discount.
The subscriptions of the country banks to Certificates of Indebtedness during the year were quite small, neither did they buy any great
amount of commercial paper. On the other hand, the market for
bankers' acceptances has gradually widened as this form of investment
has become better known. The result is that there has been a good
market for acceptances during the year among the country banks in
'See Schedules Nos. 19 and 20.



10

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

this district so that at no time has the Reserve Bank had an undue amount
of this class of paper in its portfolio. It is probably true that the local
demands of the country banks absorbed most of their resources so that
they did not have a large amount for outside investment at any time.
On the other hand, the demands of their local customers did not make
it necessary for them to borrow excessively at the Federal Reserve
Bank.
As the year closes, the Federal Reserve Bank has an adjusted reserve
of over 60 per cent., after excluding loans of some $18 millions to other
Federal Reserve Banks, and not only has the Reserve Bank been loaning freely to the other Federal Reserve Banks during the last half of
the year, but it has at the same time provided its member banks with
practically all the loans that they required.
There never has been any attempt on the part of the officers of this
bank to dictate to its member banks the class of loans that they should
discourage, as it was felt that member banks could make better use of
their money, both for their customers and the general business community
if left free to use their own judgment. Where, however, any particular
member bank had expanded its loans beyond recognized limits of prudence
or sound banking judgment, reasonable efforts have been made to help
it reduce its loans to a more normal or safe condition. It is felt that every
merchant in the District has received during the whole of the year
1920 the full amount of accommodation to which he was entitled, based
on the statement of his condition which he made to his bank, and one
proof of this fact is that the failures in this District have been comparatively few and unimportant.
REVIEW OF INDUSTRIAL CONDITIONS.
The year opened with business and industry still under the spell of
the post-war influences which, during the last months of 1919, had produced conditions of feverish activity such as had never been known in
New England prior to the war. The purchasing power of thousands of
wage-earners in the textile centers and factory towns of the district and
of the public generally, created by wages and profits which had reached
unprecedented levels, was being exercised with such extravagance and
apparent disregard for the future as to cause grave apprehension on the
part of every thoughtful observer; yet, as early as January, isolated
instances began to be reported which seemed to indicate that the limit
in this respect had about been reached. Many business concerns still
seemed, however, to be acting on the assumption that credit expansion
and rising prices were to continue indefinitely, but bank reserves had



ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

11

already reached a point which indicated that credit had been extended
to the limits of prudence.
By February evidence had accumulated which seemed to point to a
fall in commodity prices in the near future, although no important price
reduction had as yet reached the consumer. Mills and factories
throughout the district were increasing their output. More timely and
prompt deliveries of goods than had been experienced in many months
were filling up the shelves of retailers, but the gradually diminishing
number of buyers was beginning to cause the return of goods to manufacturers and jobbers, heavy snows blocking transportation and embargoes emphasizing the situation. Manufacturers also were beginning to hesitate in the matter of purchasing raw material, and deflation
of bank credits was being felt throughout the District. It began to look
as if the preaching of the doctrine of increasing production for the purpose of filling up the world's empty shelves caused by the wastage of
war, was having its effect and that a surplus, at least of goods for domestic needs,-was piling up with no present prospect under existing exchange and international credit conditions, of the disposal of the surplus to European countries.
While labor during this period remained generally stable, the situation in the textile industries in this respect was somewhat unsettled,
large bodies of operatives going on strike for higher wages, but with as
yet no apparent vision of the conditions which were to set in later
in the year. By the middle of May, pressure on manufacturers, especially of shoes and cloth, for lower cost goods was being noticeably
felt; large department stores, and shops specializing in wearing apparel,
began liquidating inventories by means of appreciable price reductions
just at a time when they would normally have been expecting a brisk
trade in summer goods, while cancellations of orders were being noted
to an increasing degree. By early summer it was apparent that curtailment in purchases by the consumer was beginning to cause the brakes to
be applied to industrial activity. Nevertheless, the influences at work
among the consumers had not yet reached back to manufacturers and
wage increases of 15 per cent, were announced in the largest textile centers of New England which affected substantially all the 300,000 or
more operatives in the cotton and woolen mills of the district. Early
summer saw even greater stagnation in the leather and shoe industry,
production in the former reaching an extremely low level with quantities of merchandise on hand extremely high. Numerous tanneries closed
down altogether. Shoe manufacturers were suffering from unprecedented cancellations and returned goods, which in numerous cases they
placed upon the local markets to the great discomfiture of retailers who were unable to liquidate inventories except at heavy losses.
Even more critical was the condition in the wool industry, of which



12

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

Boston is the country's center, caused by accumulations of vast quantities of this commodity both in the local market and abroad. Under
the circumstances, it is not surprising that one factor which had been
unquestionably a prime influence in the rapid rise of prices during the
preceding year—namely,—speculation in commodities, had been to a
very large degree, eliminated from the channels of trade.
In the textile industry, especially the woolen, and in the shoe and
leather centers, mills and factories were closing down altogether or running on short time with thousands of operatives out of employment or
living on reduced earnings even if at higher wage rates than formerly.
Strikes and labor difficulties under these circumstances were diminishing, and employment offices were reporting a surplus of machinists,
mechanics, general factory workers and clerical help looking for employment. By early autumn, these conditions began to affect noticeably the mills engaged in the manufacture of cotton goods which had
thus far seemingly escaped to quite an extent the general depression
which had affected the woolen goods and the boot and shoe industry,
and by another month other leading industries in this section were feeling the effect of the economic influences of the time.
The year closes, therefore, with general industrial conditions in marked
contrast with those prevailing in December, 1919. Nevertheless, industries on the whole in this district are far from being at a standstill.
Mills and factories are endeavoring, on the basis of reduced wage scales,
which in many instances have been brought back to the levels of 1919,
and by operating on part time schedules, to keep machinery moving.
They are producing goods for which they are confident there must
shortly be a demand because of the belief that the stocks of the retail
dealers are being depleted to the point where they will soon feel obliged
to come into the market; although certain leading department stores
reported stocks held during the year as surpassing all previous records,
standing in November at the highest point of the twelve months. The
latter also claim that sales each month of 1920 exceeded in value those
of the corresponding months of the previous year. Although the spring
season was retarded by the protracted winter weather, and the public
restrained its patronage somewhat when confidence in the then prevailing price level was shaken by unexpected mark-downs by a well known
New York department store, the fall season witnessed the unusual phenomenon of special sales by merchants immediately prior to Christmas
which, with the usual Christmas buying, swelled the total of autumn
sales to an appreciably larger amount than in 1919.
Notwithstanding the strained condition under which industry was
being carried on, the commercial failures in New England'according to
Dun's Agency, for 1920 numbered 883 with liabilities of $20,334,092 as
'See Schedule No. 45.



ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

13

against 812 in 1919 with liabilities of $12,812,487. While this was an
increase of 9.2 per cent, in the number of failures and 58.6 per cent, in
the amount of liabilities, the percentage increases for both the number
and amount of liabilities were the smallest reported for any section of
the country, and compares with an increase of 37.7 per cent, in number
and 160.5 per cent, in amount for the whole United States.
REVIEW OF BANKING CONDITIONS.
The member banks in the First Federal Reserve District have gone
through the year in a most satisfactory manner, having adjusted their
business to meet the changing industrial conditions.'
There have been no failures among member banks during 1920 and,
while a few banks have at times become somewhat over-extended in
their loans, liquidation of these to proper limitations have been gradually brought about through the help and co-operation of the Federal
Reserve Bank. The failure of several of the smaller Boston trust
companies in the early Fall caused but temporary disturbance to other
banking institutions. These trust companies had large savings deposits and handled a character of business peculiar to themselves and, therefore, their closing was little felt by other institutions.
The condition of banks outside of Boston has changed but little during the year, as the pressure due to price readjustment has fallen largely'
on the Boston banks. Country banks have bought but a small amount
of commercial paper during the year although they have been buyers of
Government Bonds and bankers' acceptances. Concerns, therefore,
that have been accustomed in the past to rely on the outside market
for loans have been obliged to increase their borrowings with their city
banks. A comparison of the returns made by the banks in the District
shows a marked decrease during the year in loans secured by Government obligations held both in the outside banks and Boston banks. On
the other hand, both classes of banks show an increase in commercial
loans. Demand deposits during the same period have declined, especially of Boston banks, while time deposits have increased, the increase being largely with outside banks. The country banks have been
able to steadily reduce their loans at the Federal Reserve Bank, while
the Boston banks, owing to their deposits declining faster than their
loans were paid off and to seasonal demands of the District, although showing a satisfactory reduction since their high point early in the year, have
increased on the other hand from the low point of August and September, and these banks have been fairly constant borrowers during the
entire year at the Federal Reserve Bank.



•See Schedules Nos. 30, 31, 3Z, 33.

14

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

STATEMENT OF CONDITION.
A comparison of the statement of the condition' of the Federal Reserve Bank of Boston on December 31, 1920, with that of the same
dates in 1919, 1918 and 1917 shows several interesting changes.
It will be noted that bills discounted secured by U. S. War Obligations
have decreased materially from the preceding two years, and, on the
other hand, commercial bills have increased considerably. Gold reserves held by the bank against deposits and by the Federal Reserve
Agent against Federal Reserve Notes have largely increased, while the
gold held with Foreign Agents has been greatly reduced; whereas in
previous years rediscounts were carried with other Federal Reserve
Banks on the date of these statements, this year it will be seen that the
Reserve Bank is loaning to other Federal Reserve Banks. The surplus
account has been increased until it exceeds the subscribed capital, the
paid-in capital shown being 50 per cent, of the amount subscribed by
member banks. The reserve account of member banks has declined,
the falling off of deposits of member banks requiring smaller reserves to
be carried with the Reserve Bank. The increase during 1920 of
Federal Reserve Notes in circulation, while not so large as in the
previous periods, is considerable.
More detailed comments on the changes in the statement will be
found elsewhere in this report.
FINANCIAL RESULTS OF OPERATIONS.
The heavy increase in loans to the member banks in this District
and rediscounts for other Federal Reserve Banks, together with increased discount rates, has naturally brought unusually heavy earnings
to this bank. On the other hand, expenses have also increased. It
might be noted, however, that over one-half of the expenses at the present time is due to cost of increased service to member banks, such as
currency shipments, check collections, etc., rather than to direct operating costs.
The schedule of income and expense does not include disbursements
made for account of the Government in connection with the Fiscal
Agency operations and the War Savings Organization, amounting to
$447 thousands, for which the bank is reimbursed by the Treasury
Department.
Semi-annual dividends were paid June 30th, 1920 and December
31st, 1920 at the rate of 6 per cent, per annum on the stock holdings of
member banks and, after carrying $7,351,799 to surplus account in
accordance with the provisions of the Amendment to the Federal Re1
2
See Schedule No. I.
See Chart F.
3 See Schedule No. 2.




ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

15

serve Act approved March 3, 1919, $2,473,499 was paid over to the
United States Government as a franchise tax, which, under the provisions of that Act, "shall in the discretion of the Secretary be used to supplement gold reserve held against outstanding United States Notes, or
shall be applied to the reduction of the outstanding bonded indebtedness of the United States under regulations to be prescribed by the Secretary of the Treasury."'
LOAN AND DISCOUNT OPERATIONS.2

The year 1920 opened with loans, discounts and investments at $289
millions which was approximately the highest peak they had ever reached,
while, in order to maintain a reserve above the legal limit, the Federal
Reserve Bank of Boston had rediscounted some $60 millions of that
amount with other Federal Reserve Banks, i. e., bankers' acceptances
sold with this bank's endorsement. Of these $289 millions, $124 millions were loans against U. S. War obligations, $63 millions loans and
discounts against commercial paper, S78 millions bankers' acceptances,
$22 millions U. S. Securities owned by the bank.
The increase of the discount rates in January brought about a steady
reduction in loans against U. S. War Obligations which was later accentuated by the raising of rates on loans against Certificates of Indebtedness, and still further accentuated by the general increase in rates of
June 4th. Loans against U. S. War Obligations were reduced to some
$52 millions by October and, while subsequently increasing, the year
ended with $68 millions of the bank's loan on this type of paper.
On the other hand, loans against commercial paper steadily increased
from January well into March, embargoes and heavy snows interfering
with transportation and delaying the movement of goods. While commercial loans were somewhat reduced later in the year, they increased
again until in June they had reached some $70 millions. The raise in
discount rates by the Bank in June had little effect in reducing its loan
for several weeks, and then the loan declined at the same time as the
usual mid-summer contraction, which was somewhat more marked than
in 1919. The commercial loans remained fairly steady until early in
November when, as in past years, with seasonable demands these loans
began to increase, reaching a high point of $101 millions the last of
December and closing the year at $87 millions.
The holdings of bankers' acceptances purchased in the open market
declined rapidly from the first of the year, by-March 19th being reduced
to about $20 millions, and did not increase to over $35 millions at anytime during the balance of the year, a high point being reached on May
1
2
See Schedule No. 3.
See Schedule No. 4.
3 See Chart G.




16

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

21st. During June and July the bank's holdings of bankers' acceptances steadily declined, being somewhat increased during September
and October by purchases in the New York market.
On January 1st, 1920, 68 per cent, of the total loans of this bank were
to Boston Banks. This percentage increased to 80 per cent, in July,
and reached a point of 85 per cent, in November. It should be noted,
however, that the member banks in Boston have contributed from 52 to
57 per cent, of the total reserve deposits in this bank.
DISCOUNT RATES. =
The decided decrease shown in the Government's floating debt between July 1 and the end of the year 1919, the expectation that the offering of Treasury Certificates of Indebtedness during 1920 would be of
diminishing volume, and the over-loaned condition of the Federal Reserve Bank of Boston were motives for increasing discount rates, the
Directors of the Bank believing that the time had passed when the
needs of the Government could be considered paramount to controlling
the general credit expansion that had been under way since the summer
of 1919 and was still on the upward swing. While discount rates had
been raised somewhat in the preceding November and December, the
increases had had practically no effect in checking the expansion which
was fast approaching a dangerous point. Discount rates were raised
four times during the year 1920. On January 3rd the rates on loans
secured by Treasury Certificates of Indebtedness were increased to 4 ^ % ,
which was somewhat higher than the interest rate carried by many of
the issues of the Certificates then outstanding. On January 23rd a
general increase in discount rates was made, the increases ranging from
1/4% m t n e c a s e °f Commercial Paper (6%) to %% ° n loans secured
by Liberty Loan Bonds (5^%). While the rates on loans secured by
U. S. Certificates of Indebtedness were not raised at that time, they
were increased February 27th to 5%. The rates established on January
23rd were effective in reducing loans secured by Government obligations, but were not effective in controlling loans for commercial purposes and these continued to expand, the bank rate of 6% being not
only not equal to, but rather below the outside market rate. Loans were
expanded in many cases far beyond the limits of safety which the
amount of capital invested in industries warranted, especially with increasing cost of inventories. The matter of establishing a graduated
discount rate based on member bank loans was discussed from time to
time by the Directors of the Bank, but, as most of the pressure for loans
was on the large Boston banks, a pressure emanating from manufacturers and dealers in raw material, it was feared that such a policy might
2
"See Schedule No. 32.
See Schedule No. 40.



ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

17

bring about a too drastic curtailment and it was therefore abandoned.
A second general increase in rates was therefore put into effect on June
4th, at which time rates on commercial paper were advanced to 7%,
the special discount rates for bankers' acceptances withdrawn, and the
rates for paper secured by Liberty Loan bonds and Treasury Certificates of Indebtedness increased to 6% and 5J^% respectively. At the
same time the open market rates on bankers' acceptances were also
raised. These increases of June 4th had the desired effect, and by
August the loan of the Bank had been reduced to such a point that from
then on until the end of the year this bank rediscounted heavily
for other Federal Reserve Banks and was thus enabled to assist other
sections of the country in financing the abnormal situations that had
developed, as these sections had previously assisted New England earlier in the year.
BANKERS' ACCEPTANCES.1
The general development of bankers' acceptances in this district during the past year has been very satisfactory. The character of the
acceptances originating in this district as well as those purchased by
the Reserve Bank, has conformed more closely to the policy and regulations laid down by the Federal Reserve Board than ever before,
and at the same time the general market has broadened. The
somewhat artificial support which the Reserve Bank has felt necessary
to give to the market during the past year has been largely withdrawn.
Brokers report increasing sales of acceptances to country banks, savings
banks, insurance companies, and trustees, as well as to individuals and
corporations, evidencing the fact that the desirability of acceptances as
a short time prime investment is being more and more recognized.
Brokers have been more active in distributing bankers' acceptances than
ever before and the Reserve Bank has therefore been called upon to a
greater extent to assist these brokers in carrying portfolios upon 15-day
repurchase agreements. Early in the year this bank adopted the policy of sending out questionnaires to the acceptors of bills which it had
purchased in order to check up the character of the underlying transactions. This questionnaire is not sent out on every bill purchased but
at rather rare intervals, or when earmarks are noted about a bill which
have raised some question regarding its character. Acceptors have
co-operated most satisfactorily in responding to the questionnaires and
it is believed that from the standpoint of the bank, brokers and
acceptors, the results obtained have been beneficial. On January 23,
1920 when discount rates were generally increased by the bank a prefer•See Schedules Nos. 4, 34, 35, 36, 37, 38.



18

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

ential discount rate of 5 per cent, was established on bankers' acceptances. As the open market rate was 5% per cent, this policy resulted in
acceptances being offered freely for rediscount by member banks and
the open market almost ceased to exist, some S15 millions of acceptances
being held by April 1 under rediscount. The policy of preferential
rates was later abandoned and from then until the end of the year the
outside market continued to broaden. In June and also in October and
November bills were purchased direct from the Federal Reserve Bank
of New York, some $31 millions in all being thus procured. The policy
in buying bills has been changed from time to time, at certain periods
unendorsed bills were purchased only when their maturity was not over
30 days and at a later date when such bills had only 20 days to run.
In July and August a special rate was maintained of one-eighth less
than the current rate on prime bills drawn outside of the country. The
volume of acceptances has held up unusually well, especially when the
price of commodities is considered. There was outstanding on November 15, 1920, some $88 millions of bills accepted by the banks and
bankers in the district as compared with $105 millions on November
17, 1919.
TRADE ACCEPTANCES.
The development of the use of trade acceptances,—at least the domestic trade acceptances, unlike that of the bankers' acceptances, does not
appear to have been entirely satisfactory. That they have been misused there is little question, and for the most part the banks in the district do not feel any more favorably disposed, if as much so, to encourage their use than in the past. There is evidence of their use on overdue accounts and for the purpose of extending longer and larger credits. On the other hand, the opinion is held to some extent that if the
trade acceptances had been more frequently utilized it might have proved
a safeguard against the evil of cancellations of orders and the return of
goods which has been such a prevalent evil during the past year. The
shoe trade generally, including manufacturers, wholesalers and jobbers have apparently taken more frequent advantage of this class of
banking instrument than have business men in other lines, although
certain wool houses and dealers in woolen goods have, at times, used
them as have also cotton mills when buying cotton heavily. The volume of trade acceptances rediscounted with the Federal Reserve Bank
of Boston was considerably less than in previous years, and none
either domestic or foreign have been purchased under open market
operations.




ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

19

UNITED STATES SECURITIES.1
The investment holdings of the bank in government securities, bonds,
and short time obligations, show no material change from the previous
year. The bank, however, has had a large volume of transactions in
these securities during the year. Treasury Certificates of indebtedness
have been purchased and resold without profit between banks, brokers,
and the Treasury Department, the Reserve Bank simply acting as intermediary and this practice has been beneficial in bringing about a better distribution. In addition to these transactions, purchases were made
for the account of the Federal Reserve Bank of Boston of maturing
Treasury Tax Certificates from the Federal Reserve Bank of New York
and from member banks several days before September 15 and December 15, thus relieving the strain on those banks on account of tax payments due on these dates. These purchases from the Federal Reserve
Bank of New York amounted to $25 millions of September 15 maturities and $20 millions of December 15 maturities. As in past years pending receipts of funds from depositary banks, the Treasurer of the United
States has borrowed from time to time large amounts of the Federal
Reserve Bank of Boston through the sale of one day certificates of indebtedness, the aggregate amounting to about S471 millions, and at
rates of 2 and 4 per cent., the largest amount held at any one time being
S36 millions.
RESERVE POSITION.1
During the year, the reserve position of the Federal Reserve Bank of
Boston has shown a marked improvement both in percentage and actual gold holdings. While the actual reserve against combined note
and deposit liability as published on Friday each week has varied from
40 per cent, to 60 per cent., the adjusted reserve, that is the reserve after
eliminating the Inter-Federal Reserve Bank loans, shows fluctuations
from 27 per cent, on January 1 to 60 per cent, on December 31 with a
high point of 72 per cent, on October 22. As in previous years a
marked decline in the reserve position appeared early in November
due largely to maturing municipal obligations issued in anticipation of
tax payments which had been purchased outside of the district. Except at the quarterly tax periods the transfer of funds by the Treasury
Department has not as in previous years, materially affected the bank's
reserve position. The actual gold holdings of this bank have increased
steadily during the year ending with an increase as shown by the
comparative statement of over $50 millions and with lawful money also
showing an increase. This increase in gold has all come from other
• See Schedule No. 4. ' See Schedule No. 6 and Charts A, B, C, D and E.



20

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

Federal Reserve Banks, showing that the liquidation in securities and
commodities has drawn money from other districts. In November,
the tide turned and gold payments to other districts exceeded the receipts,
due largely to the payment of municipal notes as referred to above.
The gold held with foreign agencies has been reduced from $9,586
thousands to S241 thousands. When the sales of gold held by the Bank
of England ceased, it was decided to transfer the balance to this country
and shipments were, therefore, made during the fall until it had all
been brought over. In connection with the payments on the AngloFrench loan, the French government arranged with the Federal Reserve
Bank of New York to leave with the Bank of France a certain amount
of earmarked gold deposited by the French Government which amount
was apportioned among the other Federal Reserve Banks as had been
done with gold held in England, the share of the Federal Reserve Bank
of Boston being $241 thousands.
DEPOSITS.1
Member banks' reserve accounts have fluctuated within a range of
about $20 millions and have shown no marked tendency to increase as
in previous years although the average has been higher than in 1919 or
1918. The deposits of new member state banks account for some of
the increase and also the fact that the policy adopted of higher penalties for deficient reserves has influenced banks to keep their full required
reserves although the general decline in deposits which the member
banks have been experiencing during the year has required smaller
reserve balances with the Reserve Bank. The daily clearings between
the Federal Reserve banks through the gold settlement fund have eliminated the carrying over of collected balances of Federal Reserve Banks
which in the past were settled each week. Although the deposits of
the government have fluctuated widely during the year and at times
have been overdrawn, necessitating numerous loans on one-day certificates of indebtedness, the deposits of foreign governments and foreign
banks have declined from $5,277,000 during the year to $292,000. On
January 1 the Argentine Government had some $5 millions on deposit
which early in the year was withdrawn through shipment of gold to
Argentine and through payment for its account in this country. On
June 16 this bank was apportioned $292,000 of a deposit made by the
Bank of Japan with the Federal Reserve Bank of New York and assumed an endorsement liability on acceptances sold to the Bank of
Japan of $1,168,000.
•See Schedules Nos. I, 6 and Chart E.



ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

21

CURRENCY.1

The demands for currency from member banks have been unusually
heavy during the year 1920 and the expense and responsibility devolving on the Reserve Bank in its sorting, handling and shipment, have been
heavy. While this service has been increasing in importance each year,
it has been greater this year on account of the taking over of the functions of the Boston Sub-Treasury on October 23 and because of the
responsibility attendant upon supplying the currency needs of the district. The movement of currency has been made the subject of careful
study and it is felt that the Federal Reserve Notes which constitute the
currency in which demands for circulation are met, are acting in the
form of an elastic currency such as was contemplated by the Federal
Reserve Act. While it is evident that the Inter-Federal Reserve Bank
credit condition affecting Federal Reserve Notes in other districts and the
abnormal international credit situation which has drawn federal reserve
notes out of the country in place of gold, are artificial factors which have
an influence upon currency movements, there appears to be evidence,
so far as the Federal Reserve Note circulation of this district is concerned, that a proper control of the credit situation results in adequate
control of note issues, note circulation showing a tendency to expand
or contract somewhat with credit fluctuations or fluctuations in gold
reserves against combined deposit and note liability. While this year
the note issue increased steadily as in other years, as long as the reserves
of the System showed no material improvement since early fall when
that reserve began to improve, not only has a marked contraction appeared, but the increase in gold holdings of the bank has provided a much
larger gold cover against outstanding notes. The decline in note issues
began in September when a very marked recession appeared, which,
however, was checked by the sudden demand for currency following
the closing of several Boston non-member trust companies. Federal
Reserve Notes in circulation on January 1, 1920 were S244 millions, the
note issue reaching in September the high point of S311 millions, which
by the end of the year had receded to $286 millions. Shipments of
Federal Reserve Notes have been reported by member banks to Cuba
and other Latin-American countries, especially during the early months of
the year and there is evidence of pay-roll money having been sent by
mill operatives to European countries, especially those of Central
Europe.
CHECK OR TRANSIT DEPARTMENT.1
With the exception of checks drawn on the Treasurer of the United
States, the volume of checks handled by this bank during the year 1920
1
!
See Schedules Nos. 9, Io, I I, 12, 13, 14 and Chart F.
See Schedule No. 15.



22

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

has largely increased both in volume and amount over previous years,
the heaviest increase being in New England checks.
The increase of par point banks throughout the United States has
caused more checks to be collected through this bank. At the present
time, checks on banks in 41 out of the 48 states can be handled through
the Federal Reserve Banks at par; checks on 28,768 of the total 30,523
banks in the country are now remitted for at par to the Federal Reserve Banks, or over 93%, the remaining 7% of banks, non-par points,
being situated in Alabama, Florida, Georgia, Louisiana, Mississippi,
South Carolina and Tennessee.
The decrease during the year of the number of items and amounts
drawn on the Treasurer of the United States is due to the cessation of
government activities in the World War, with its consequent decrease
in government expenditures.
While the number of member banks sending checks direct to the
Federal Reserve Bank for collection has increased from 111 on December 1, 1916, to 126 on December 1, 1920, as there are 436 member banks
in the district, it will be seen that a rather small percentage of the member banks are availing themselves of this service. A large majority of
the banks still continue to send checks through their city correspondents, although most of those checks in turn are collected by those correspondents through the Federal Reserve Bank.
COLLECTION DEPARTMENT.1
The Collection Department, handling time items, notes, drafts, and
coupons, has also had a heavy increase in the number of items handled,
necessitating in this Department an increase of 14 clerks, or a total of
24 for the Department during the year. The policy of giving immediate credit for maturing coupons and bankers' acceptances has materially
increased the volume of such items handled. This Department does not
collect coupons on government obligations, which are handled in the
Fiscal Agency Department. Member banks sending time items for
collection to this Department have increased from 82 on December 31,
1919, to 131 on December 31, 1920.
RELATION TO BANKS AND THE PUBLIC.
Satisfactory progress has been made during the past year towards
developing a closer relationship with the officials of both member banks
and non-member State banks, and with the public at large, and a better
understanding of the service that the Federal Reserve Bank of Boston
can furnish in assisting in the safeguarding and development of industrial, commercial and agricultural and financial activities of the New
England District.
•See Schedule No. 18.




ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

23

The officials of the Federal Reserve Bank have made calls from time
to time upon member banks, explaining in detail matters -pertaining
to operating service which this bank can offer its members, and this has
led, as explained elsewhere in this report, to increased use of the bank's
facilities for currency needs; collection of checks and time items, and of
other services which the bank can furnish.
During the year, in connection with the monthly review of conditions
in this District, a department has been opened whose duties are confined exclusively to the analysis and investigation of industrial, commercial and agricultural statistics. This Department, although confining
its work to industrial investigation, is working in the closest co-operation
with the department investigating financial statistics. Through the
work of this department and through conferences which the bank officials have had with representatives of the important industrial activities in the District, the bank has been able to keep in the closest touch
with the needs and changes which the industrial situation existing during the past year has brought on the local credit situation. The Bank's
officials have from time to time addressed banking and trade organizations on subjects pertaining to its operation.
Three State banks have been admitted to membership in the Reserve
System, and also four National banks that had been newly organized,
while three National banks surrendered their charters to become State
banks. Fiduciary powers have been granted to a number of national
banks during the year, as well as privileges to accept dollar exchange.
CREDIT DEPARTMENT AND BANK EXAMINATIONS.
The unusual changes which the industrial situation has undergone
during the year 1920 placed a heavy responsibility on the Credit Department of the bank, necessitating an enlargement of its force. The credit
standing of commercial notes offered for rediscount has been followed
very closely, all notes offered for rediscount having been approved by a
Committee composed of the Assistant Cashier in charge of the Discount
Department, the Chief Examiner and the Manager of the Credit Department, and doubtful credits in turn referred by this Committee to the
senior officers for final adjudication.'
The credit situation in general has been so sensitive and critical at
times as to warrant the closest scrutiny of borrowings, and in many
cases the most careful handling and tact to bring about proper results.
The officers of the bank have had the fullest co-operation of the bankers in this district and when credit problems have arisen in other reserve
districts, have advised with the officers of the Federal Reserve Banks
in other Federal Reserve districts before passing judgment. The work
of the Examining Department has been very heavy during the year
1
See Schedule No. 29.



24

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

and here again the bank has kept in closest touch with the chief National
Bank examiner of the district and with the Bank Commissioners in
the different states in the district. State banks seeking admission to
the System have been examined by the examiners of the Federal Reserve
Bank of Boston before application for admission has been filed and the
policy has been adopted of making at least one examination during the
year by the bank's own examiner, of state bank members.
INTERNAL ORGANIZATION.1
The heavy increase in the volume of business which the bank has been
called upon to handle during the past year has necessitated a further
increase in its clerical force. On December 31, 1919, there were 629
employees in the bank. On December 31, 1920, these had been increased
to 754, the increase being about equally divided between men and
women clerks. While most departments show an increase in the operating force, those departments handling currency, checks and government securities show the largest increase.
On October 1, 1920, William W. Paddock was elected Deputy
Governor, Mr. Paddock having been connected with the Federal Reserve
Board in charge of its examining division.
On October 21, Krickel K. Carrick was elected Secretary of the Board of
Directors in place of Arthur H. Weed who resigned, Mr. Weed continuing
as the bank's counsel.
An election of directors was held from November 16 to November 30,
1920, to fill the vacancies caused by the expiration of the terms of Thomas
P. Beal, Class A director, and Philip R. Allen, Class B director, both
representing banks in Group 1. Of the 46 banks entitled to vote in this
group, 38 voted, all votes cast being in favor of the two retiring directors who were re-elected each for the term of three years, ending December 31, 1923.
At the meeting held January 8, 1920, the directors appointed Philip
Stockton, President of the Old Colony Trust Company, to represent this
district as a member of the Federal Advisory Council.
On December 31, 1920, the Federal Reserve Board reappointed Frederic H. Curtiss, Class C director for the term of 3 years, ending January
31, 1923, and re-designated him Chairman of the Board of Directors for
the year 1921; Allen Hollis being re-designated Vice-Chairman for the
same period.
BANKING QUARTERS.
Soon after the new year opened, the question of delaying the construction of the building to house the Reserve Bank's activities became
a serious matter for discussion by the Directors of this Bank. The
1
See Schedule No. 46.




ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

25

leases on the buildings on the lot facing on Franklin, Pearl and Oliver
Streets which had been purchased, all expired on March 31st, and
the architects' plans had been completed and accepted. While the
high cost of construction was a most serious consideration, the
great handicap under which the bank's operations had been conducted
and above all its inadequate vault facilities were deemed of paramount
importance. It was, therefore, decided, with the approval of the Federal Reserve Board, to build at once and accordingly on March 1st, work
was begun on tearing down and removing.the old buildings. Excavations were begun on March 29th and from then on construction operations have been pushed as rapidly as possible.
Apart from some delay in the delivery of steel beams and limestone,
the construction has progressed thus far as fast as was expected, the
weather conditions during the early winter months being unusually
favorable. As will be seen by the frontispiece of this report, the exterior has been already completed and the building roofed in, so that the
work can proceed on the interior during the cold weather and the building kept heated. The general plan of the building follows the description given in the bank's report for 1919, the only material change being
in the vault construction, to which much study has been given in order
to insure the utmost protection for the specie and securities held by the
bank.
Unless some unforeseen occurrence arises, it is expected that the building will be ready for occupancy some time during the latter part of 1921.
FEDERAL RESERVE SOCIETY.
The Society, organized and managed by the employees of the bank,
has had a most satisfactory year, and has received hearty support both
from the officers of the bank and the employees.
The Society has now 675 members. It has continued to publish the
monthly magazine, the Federal Reserve Society News, which contains
articles of general interest about the bank, and has organized and carried through a number of social entertainments during the year. Through
the agency of the Society a splendid spirit of co-operation has developed
among the clerks, and with it increased loyalty to the Federal Reserve
Bank of Boston.
Financial aid and advice have been given by the Society to members
when necessary. During 1920 the Society distributed a large quantity
of surplus Army goods, selling them to members at cost, while over a ton
of maple sugar and syrup was sold during the year. At Thanksgiving
and Christmas several thousand pounds of turkey were purchased and
distributed at wholesale prices to members of the Society.
Baskets of fruit and flowers have been sent to members confined at home
by sickness.




26

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

FISCAL AGENCY DEPARTMENT.
This Department, both in the volume and value of securities handled,
has shown a heavy increase during the year, necessitating some twenty
odd additional clerks.
While the volume of collateral held against Government deposits in
banks, deposits made in connection with subscriptions to Certificates
of Indebtedness, has been considerably less, banks continued to leave
their securities for safe-keeping.
On the other hand, the exchanging of temporary for permanent Liberty Loan Bonds, and the handling of maturing coupons, has added
greatly to the increase in the work.
CERTIFICATES OF INDEBTEDNESS.1
The official operations of the government during 1920 have been confined to short-time loan certificates, or certificates issued in anticipation of
income or excess profit taxes. These certificates issued, though less in
volume than in 1919, both owing to the interest rates which they bore and
largely to the general credit situation existing, did not find a ready market in this district during the first half of the year, and the quotas allotted
to the bank were not filled.
From August on, however, due to the improved credit situation
brought about by industrial liquidation as well as the increased rates
which new offerings of certificates bore, over-subscriptions were received
on all subsequent issues. During the year issues of these Certificates of
Indebtedness have been offered at frequent intervals at rates varying
from 4%% to 6%, with maturities of from one and a half months to a
year. The subscriptions, as in past years, were all made through the
banks in the district, and to a large extent were paid by credits set up by
those banks, these government deposits or credits being gradually withdrawn into the Federal Reserve Bank to meet government requirements.
GOVERNMENT SAVINGS SECURITIES.2
The Savings Organization has become more akin to other Fiscal
Agency operations in the bank during the year, and as the year ends,
arrangements have been made to house this organization which has
been reduced from 143 employees on December 31, 1919 to 19 on
December 31, 1920, in the rooms formerly occupied by the Sub-Treasury,
a large portion of which are now used by the Currency Department of
the bank.
•See Schedules N o s . 1 9 , 2 0 , 2 1 , 2 2 , 2 3 .



= See Schedule N o . 2 3 .

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

27

The decrease in this organization has necessitated the elimination
of all state offices and state organizations, and has centered the activities of this department in its headquarters in Boston. While there
has been a great saving in the expense of handling the Savings Division
by the reduction in the size of this organization, on the other hand, the
volume of savings securities sold in the district has shown a marked
decrease.
On December 1, Mrs. F. L. Higginson, who had been government
director of the Savings Division in New England since January, 1919,
resigned, and Mr. Frank C. Ayres, who had been connected with this
Division during the past year, was appointed in her place.
The efforts of the Savings Division during the past year have been
directed (1) To develop and protect the secondary market for all war
issues of government securities, (2) To sell government savings securities,
(3) To make permanent the habits of regular saving and investment in
United States government securities.
It has concentrated its efforts upon the organization of savings societies in industrial plants, educational work, and organization of school
savings societies and women's organizations.
CONCLUSION.
The last twelve months have brought new problems to the Reserve
Bank. While during the past few years, Government financing has
played a most important part, during 1920, the industrial situation has
been the controlling factor in the bank's operations, the Treasury borrowings becoming of less and less importance in the general credit situation; especially during the last half of the year Treasury Certificates
were offered for subscription at such rates that made them attractive to
the investor—thus keeping them out of commercial banks' portfolios.
The proceeds of such subscriptions were left on deposit with subscribing banks for such short periods as to have but little influence in the
credit situation. The apparent industrial prosperity which marked the
early months of the year while probably artificial, brought new high
price records for commodities in various lines of production, founded as
it was to a large extent on a foreign trade, financed by bank credits
which could not increase or continue indefinitely. These credits had
reached such proportions, falling as they did on the banks in the large
centers, that the limit of such credit expansion was reached and then
domestic demands being insufficient to take care of production, prices
generally began to fall. From early summer to the end of the year,
this price deflation continued and, as the year ends, has been felt in all
lines of industry in the district. The retailer and labor always last to



28

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

meet price reduction, have as yet shown but very slight changes in the
reduction of prices and wages and, therefore, this readjustment in retail
prices and of labor wages will probably continue well into the new year.
Many commodities, however, are selling at below their cost of production. Numerous industries are left, however, with large inventories of
raw material and manufactured goods and the liquidation in these inventories will necessarily be slow and therefore money rates, especially in
the large centers, while easier, will probably continue fairly high throughout the year.
The banks outside of Boston are fairly comfortable so far as money
conditions go as they have been during the greater part of the year, and
are borrowing but little from the Reserve Bank. The Boston banks, on
the other hand, have been and are carrying the burdens of the extreme
liquidation and therefore, continue to be fairly heavy borrowers at the
Reserve Bank. It is a source of much satisfaction that this liquidation
has come about in such an orderly manner. While business failures in
the district have been thus far few, as the year progresses there will
probably be more, but through the co-operation of the Reserve Bank
with its member banks, no undue pressure is being brought to force extreme liquidation and this factor of time should do much to bring
about the continued orderly liquidation of inventories.




ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
SCHEDULE 1.

29

Comparative balance sheet.
[000 omitted.]
Dec. 31, '20 Dec. 31, '19 Dec. 31, '18 Dec. 31, '17
RESOURCES.

Earning assets:
Bills discounted secured by United States war
obligations
Other bills discounted (commercial)
Acceptances purchased in open niarket
United States bonds
United States short term obligations

77,724

7,959
34,351
9,580
4,037

3,317
37,293
408
2,288

18,691
16,977
3,675
3,574

55,933

43,306

42.917

73,511
26,342

40,897
2,000

99,853

59,733
7,812
67,545

217,516

155,786

110,851

85,814

57,623
26,634
1,072
2,700
468

85,424

567
68,493
30,015
321

118
18,787
66,489

522,122

Rediscounts for other Federal Reserve banks

156,613

153,543

Total.

229,032

134,747
18,796

Total cash reserves.
Other resources:
Due from Liberty Loan Subscriptions
Uncollectcd Items
Due from Governmentdepositaries
Redemption fund Federal Reserve bank notes .
Real Estate for bank quarters
All other resources

$43,898

63,973

Total.

8120,515
13,060
15,084
538
7,416

11,800
40,116
241
11,816

Total. .
Reserve against Federal Reserve Notes:
Gold with Federal Reserve Agent . . .
Gold redemption fund

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

216,109

Total.
Reserve cash:
Gold (coin and certificates) .
Gold settlement fund
Gold with Foreign Agencies.
Other lawful money

$78,225
95,143
20,678
544
21,519

521,286

48,373

1.072
1.103
496

21,985
9,037
610
2,194

42,897

800

616

166

368,276

249,098

18,075

Dec. 31,'20 Dec.31,'19 Dec.31,'18 Dec. 31,'17
LIABILITIES.

Capital fund:
Capital paidin
Surplus
Deposits:
Due to member banks, reserve account
Due to Federal Reserve Banks, collected funds .
Due to banks, uncolleetcd funds
Due to Treasurer of the United States, general
account
Due to Treasurer of the United States, special
account
Other Deposits
Other Liabilities:
Federal Reserve notes in circulation
Federal Reserve bank notes in circulation . . . .
Unearned discount and interest
Reserve for depreciation and interest
Reserve for franchise tax and other taxes
Mortgage on real estate




$7,107
8,359

$6,692
1,536

$5,858
75

114,670

117.294
21,725
45,469

101,806
17,467
29,970

82,842
3,870
13,778

41,762
4,561

1,123

10,499

2,419

26,634
835

48,373
5,843

30,015
411

66,490
23

288,780
20,353
1,057

160,726
6,382
468
93
1,461
750

73,199

41

244,093
20,912
807
93
88

522,122

Total.
Liability for rediscounts with other
Reserve banks

$7,718
15,711

521.2S6

368,276

249,098

60,121

48,962

44,477

469

"75

Federal

Income and expense.

SCHEDULE 2.
Income.

1920.

1919.

Expense.

1918.

1920.

Paid in line of dividends on stock

1910.

1918.

discounted

for

member

Acceptances purchased
Interest on United States securiProfit on United States securities
Penalties for deficient reserves... .
Sundry profits

$10,031,301
1,013,012

SO,O(W,2.r)2
1,077,001

$3,008,027
031,701

554 172
12,213
41,783
88,04!)

300,157

107,710
41,821
18,420
212,700

27,830
10,347

l

i

$472,302
0,528
02.540
030,201)

$207,000
7,351
45,028
518,895

$272
170,895
0,008
20,082
274,361

Cost of Federal Reserve notes . . . .
Assessment for expenses of Federal Reserve Board

345,151

317,001

107,828

52,584

45,010

29,554
27,811

Tax on Federal Reserve Bank notes
Difference account
Repairs and alterations

Bills

82,000
780
288
1,334
374,580
28,102
10,272,504

89,422
1,499
14,040
18,777
310,040
47,027
5,777,381

4,558
61,895
3,554
101,520
200,000
3,304,908

12,341,130

7,497.582

4,380,455

Current expenses
Directors' fees
Kent

Transit department
Charged off or reserved

Total
1
Included with dividends.

12,341,130

7,407,583

4,380,454

Total

Distribution of earnings.

SCHEDULE 3.
Items.

1920.

Dividends paid member banks . . .
Balance
Total

$447,200 i
0,825,208
10,272,564

1919.

Items.

1918.

$414,447'
5,302,034

$383,908
2,921,000

5,777,381

3,304,908

Available for distribution

1920.

1919.

1918.

$5,777,381

$3,304,908

10,272,504

Total

$10,272,504

5,777,381

3,304,908

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

1920.

:

$0,823,434 "•

$1,535,600

9,825,298

0,823,434

1,535,000

Total surplus December 31, $15,710,000.


2 Includes $ 1,400,000 Reserve for Franchise Tax in 1918.


Items.

1918.

32,473,499
7,351,709

Reserve for franchise tax
Carried to surplus
Total

1919.

December 31 balance
Total

1920.

1919.

1918.

$9,825,298

$5,302,034

$2,921,000

9,825,298

5,362,934

2,921,000

Discount and Loan Transactions—1920.

SCHEDULE 4.

[000 omitted.]
Discounted Paper.
Month,
1920.

Secured by Bankers'
Ciovt. Win- AcceptObligaances.
tions.

Trade
Acceptance's.

Total Discounted and Purchased Paper.

Purchased Paper.

Commercial
paper.

Total.

Bankers'
Acceptances.

Dollar
Exchange.

Total.

Acquired
from other
Federal
Reserve
Hanks.

3
so
1920.

1919.

1918.

1917.
1

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

$343,955
374,374
381,400
304,881
372,969
349,388
250,501
343,463
304,671
270,305
350,984
427,139

$1,554
9,874
7,312
1,032
1,757
490

1920
1919
1918
1917

4,074,030 2
4,486,749
1,550,311
25,095

22,129
4,986
530

1
2

io
2S
77

$583
256
1,704
288
383
415
146
193
170
155
174
195

$17,213
52,101
70,996
39,838
46,021
66,392
35,837
73,111
80,324
06,902
105,002
121,996

$363,305
436,005
461,412
340,039
421,130
416,685
280,484
416,777
385,188
337,302
450,160
549,407

$18,680
18,279
25,497
29,149
29,201
23,950
22,569
24 ,752
31,090
28,719
26,781
23,803

4,662
10,820
10,287
6,115

775,733
172,844
199,157
319,710

4,876,554
4,675,399
1,700,285
350,920

303,082
360,505
189,967
88,119

$50
100
5

ioo

300
350
419
31
1,3(12
525
2,102
3,409

$18,686
18,279
25,547
29,156
29,301
23,901
22,509
24,852
31,990
29,069
27,200
23,834

$3,579
07,000
57,500
43,000
01,503
115,119
159,708
170,042
180,007
90,899
51,009

304,444 1,000,500
305,207 •
194,157'
19,898
91,528

$385,570
454,884
553,959
432,695
93,431
502,149
424,172
601,360
587,810
547,042
574,259
624,250
6,181,581

$395,343
370,081
349,003
522,480
462,431
394,712
431,033
287,944
334,405
429,898
490,900
566,316

5,040,006

$32,521
72.551
41,320
39.433
69.542
03,935
160,685
147,379
249,020
338,396
372,350
387,202

1,974,340

84,237
9,195
10,257
11,194
21,520
54,761
45,834
33,929
42,644
17,426
72,374
119,077

D
W

W
PI

o
442,448

a

Includes $4,117,000 in trade acceptances purchased in 1919 and $2,089,000 in 1918; also $4,423,000 acceptances repurchased from the Federal Reserve Bank of Kansas City. %
O
InelmloH $590,000 of papor Heeurrd by War Finance Corporation bonds.
z




32

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

SCHEDULE 5.

Average holdings, earnings and average rate of earnings, of total
earning assets.
[000 omitted.

1919.

1920.
Month.
Average
Holdings.

$214,310
228,024
220,300
217,101
220,068
214,877
213,620
218,339
239,220
232,565
227,823
225,039

May

July

December

Earnings.

$776
808
962
918

983
958
1,037
1,066
1,159
1,203
1,131
1,140

222,612

1,017

Earnings.

S152.604
166,870
109,905
182,078
184,326
182,894
187,302
178,950
189,070
194,381
219,312
222,845

4.30%
4.81
5.11
5.16
5.28
5.44
5.73
5.76
5.91
6.11
6.01
5.98

S515
506

]

12,201
Average for year

Average
Holdings.

Rate.

5.48

566
587

618
596
030
586
611
653
744
838

Rate.

3.97%
3.95
3.S2
3.92
3.95
3.98
3.96
3.92
3.93
3.96
4.13
4.30

7 460
185,878

622

4.01

Reserve position on the first of each month, 1920.

SCHEDULE 6.

[000 omitted.!

Month.

1920.
January
February
March
April
May
June
July
August
September
October
November
December

Federal
Reserve
ReTotal
Net
notes
quired
deposits. in actual combined reserve.
liability.
circulation.

Total
reserve.

Adjusted
Reserve
rediscounts
Excess
Re- with other
Reserve. serve. Federal
Reserve
banks
eliminated.

$116,846 $243,367 $360,213 $138,242 $157,502 S19.260
113,704 235,972 349,676
134,184
145,298
11,114
104,009 257,470 361,479
139,391 189,391 50,000
110,819 268,696 379,515
146,264
167,806 21,542
110,911 266,869
142,065 202,807 60,742
367,780
114,094 275,666 389,760
150,198
195,525 45,327
103,107 283,891 386,998
149,643
184,200 34,557
109,803 286,556 396,359
153,053 229,424
70,371
109,535 300,386 409,921
158,490 208,098 49,608
111,188 309,580 420,774
162,749 221,998 59,249
112,683
295,796 408,479
157,757 208,364 50,607
108,743 290,130
154,112 219,013 64,901
398,873




44%
42
52
44
50
48
58
51
53
51
55

27%
41
49
47
62
55
57
69
69
66
68
61

33

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

Transactions with other Federal Reserve Banks.

SCHEDULE 7.

[000 omitted.]

Federal Reserve Banks.

DisDisAccept- counts counts
ances. Secured. Unsecured.

Total.

New York . . . $30,674 $40,000 $70,000
56,500
Philadelphia .
370,000
6,098
6,000
88,972
69,500
111,374
70,500

Richmond . . .
Atlanta
Minneapolis .
Kansas City
Dallas
San Francisco
Total . . . .

SCHEDULE 8.

Sold to
other Federal Reserve
Banks.

Acquired from other
Federal Reserve Banks.

Acceptances.

$140,674
56,500

44,999
8,000
10,540
4,500

370,000
18,998
6,000
133,971
77,500
121,914
75 000

150,939

1,000,557

'l2,906

Amounts by Months.

Month.

$583 January . ..

$3,579

5,036 March
\pril
5,087 May
5,090
July
August . . . .
5,050 September .
October....

67,000
57,500
43,000
61,503
115,119
159,708
170,632
180,607
90,900
51,009

December. .
30,674

818,944

Acceptances
sold.

Bills
acquired.

20,846

$20,263

1,000,557 20,263

Summary of monthly transactions in the gold settlement fund with
other Federal Reserve Banks during 1920.
[000 omitted.]
DIHECT TRANSFERS.

SETTLEMENTS.

Gain for
month.

Month,
1920.
Received.

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

Paid.

$6,402
20,310
25,031
42,465
34,084
51,274
76,073
107,501
110,470
136,808
130,948
57,580

$60,038
22,000
95,969
62,500
68,000
83,100
124,120
188,219
205,323
209,537
87,882
83,438

798,946

1,290,726

Gain.




Net loss.

Received.

Paid.

$54,236
1,690
70,938
20,035
33,916
31,826
48,047
80,718
94,853
72,729
43,066'
25,858

$627,507
490,861
670,012
625,408
594,082
641,751
643,505
593,551
645.042
649,881
512,045
501,318

8578,966
453,303
622,236
571,655
570,200
591,981
581,415
534,907
518,249
598,787
529,816
478,923

491,7S0

7,194,963

6,630,498

Net gain.
$48,541
37,498
47,776
53,753
23,882
49,770
62,090
5.3,644
126,793
51,094
17,771 =
22,395

$5,695»
35,808
23,162>
33,718
10,034 2
17,944
14,043
22,074"
31,940
21,635 »
25,295
3,463 >

564,465

72,685
- Loss.

34

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

SCHEDULE 9.

Currency transactions.
[000 omitted.)
Currency
received.

Currency
paid out.

Currency handled in
sorting division.

Month.

D o l ars.

1919.

1920.

1919.

$54,612 $47,000
31,523 28,280
33,842
47,497
52,936 40,293
52,579 47,230
64,916 41,987
64,221 47,230
61,088 38,688
64 130 39,525
53,832
68,030
62,671 36,890
51,056
74,776

S38.496
50,323
50,773
44,812
55,069
63,583
60,149
73,509
74,090
55,688
55,530
66,602

505,853

688,624

1920.

February

July

December
Total

698,979

SCHEDULE 10.

Pieces.

1920.

1919.

1920.

1919.

$17,173
26,440
26,579
27,674
17,761
31,536
37,408
3S.885
37,980
41,164
39,076
60,664

$67,963
36,534
62,129
60,709
61,683
73,650
84,354
72,489
79 487
82,039
80,220
84,707

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

$12,112
6,991
10,382
10,967
11,621
12,700
13,430
12,297
12,375
13,435
12,310
13,392

$10,233
6,134
7,156
7,147
8,956
8,736
9,708
8,149
8,768
9,774
8,390
9,595

402,340

845,964

590,436

142,012

102,746

Federal Reserve bank notes aggregate as of December 31, 1920.
Ones.

Net amount in circulation

$34,563,500
20,418,802
14,144,698
269,500

$16,865,000
10,669,598
6.195,402

$2,171,500
1,888,600
282,900

$53,600,000
32,977,000
20,023,000
269,500

13,875,198

Total received from comptroller
Total notes retired and destroyed . . . .
Notes outstanding
Notes held by bank

Twos.

Fives.

6,195,402

282,900

20,353,500

Total.

United States special 2 % Certificates of Indebtedness pledged to secure circulation—$21,436,000.

SCHEDULE 11.

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

Total.
iDecrease.




Federal Reserve notes issued by Federal Reserve Agent,
Outstanding on Issued during
first of month.
month.
$254,717,970
245,964,535
264,992,625
276.552,370
275,058,725
282,474,375
203,212,765
295,667,595
307,725,945
323,929,345
312,336,545
307,276,445

Retired during
month.

Net increase.

$8,160,000
27,820,000
21,600,000
11,100,000
18,200,000
24,600,000
15,300,000
23,300,000
28,300,000
6,000,000
17,400,000
23,900,000

$16,913,435
8,791,910
10,040,255
12,593,645
10,784,350
13,861,610
12,845,170
11,241,650
12,090,600
17,592,800
22,460,100
29,622,400

$8,753,4351
19,028,090
11,559,745
1,493,645 '
7,415,650
10,738,390
2,454,830
12,058,350
16,203,400
ll,592,800>
5,060,100 i
5,722,400 i

225,680,000

178,843,925

46,830,075

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

SCHEDULE 12.

35

Federal Reserve notes issued and retired by denominations.

Denominations.

Fives
Tens
Fifties
Hundreds
Five hundreds
One thousands
Five thousands
Ten thousands
Totals

Outstanding
January 1,
1920.

Outstanding
December 31,
1920.

Retired.

Issued.

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

841,500,000
76,760,000
78,120,000
9,000,000
8,400,000
700,000
9,700,000
500,000
1,000,000

$37,891,295
72.662,640
16,071,440
6,001,050
5,007,000
421.500
0,234,000
515,000
1,040,000

$41,316,655
105,544,570
113,548,720
15,742,500
16,377,600
968,000
5,711,000
385,000
960,000

254,717,970

225,680,000

178,843,925

301,554,045

SCHEDULE 13.— Movement of Federal Reserve notes between districts, 1919 and 1920.
[000 omitted.]
Received from
1920.
New York

Atlanta
St. Louis

Total
1

Net excess received.




1920.

1919.

803
597
2,277

522
307
1,062

1,125
1,466
1,497

$59,738
6,873
4,427
4,392
2.471
6,369
1,220
1,378
1,621
509
1,295

9S.292

62,719

89,583

90,293

S72.012
6,208
2,777
3,741
2 313
5,581
1,478
505

Dallas

1919.

Sent to

845,236
4,247
2,325
2,238
1 608
3,681
1,073
420

S59.550
7,049
3,996
3,474
2,944
6,009
1,066
807

Net excess returned
1920.

1919.

$12,462'
841
1,219
267'
631
1,028
412'
322
869
780 1

1,099
202

8,709 •

27,574

302

$14,502
2,626
2,102
2,154
863
2,688
147
958

233

Available supply of Federal Reserve notes on December SI, 1920.

SCHEDULE 14.
Held by

Fives.

Tens,

Twenties

Federal Reserve AKent * 10,500,000 527,000,000 $41,080,000
Comptroller of the
Currency
7,020,000 17,700,000 13,810,000
Total printed
Being printed

Fifties.

Hundreds.

Five
Hundreds.

Thousands.

Five.
Thousands.

88,400,000

$9,200,000

SI ,700,000

$7,100,000

$3,000,OOQ

$7,000,000 $122,180,000

15,000,000

1,200,000

0,000,000

23,000,000

10,000,000

12,000,000

107,020,000

7,700,000

30,700,000

13,000,000

19,000,000

229,800,000

24,120,000

44,700,000

55,520,000

24,000,000

10,400,000

9,080,000

12,240,000

10,500,000

2,800,000

8,800,000

Ten
Thousands.

400,000

Total.

49,880,000

Amount of cliecks handled by the Transit Department.

SCHEDULE 15.

[000 omitted.]
On banks in Boston
Clearing House.

Other banks in
this district.

On Treasurer of
United States.

On banks in other
districts.

Total.

Month.
1920.

1919.

1920.
January
February
March
April
May
June
July
August
September
October
November
December

Total




1919.

1920.

1919.

$751,708
505,948
00(1,454
702,255
090,999
732,338
712,995
030,019
050,886
674,509
(125,602
650,774

$587,933
440,381
534,204
532,010
570,704
045,121
008,824
509,979
(138,796
608,482
649,347
789,564

$433,119
329,730
445,180
457,778
400,120
50(1,979
483,750
435,099
463,545
460,960
442,702
442,873

$2S0,910
230,870
309,490
288,114
309,498
352,631
350,004
333,415
3!) 1,035
408,427
390,445
458,240

$28,018
19,201
29,747
39,708
40.014
27,703
20,149
22,548
10,079
43,058
17,778
34,195

$112,282
09,931
01.S32
54,427
35,480
32,887
47,180
164,889
35,985
20,635
24,819
63,692

$83,160
80,024
95,507
88,207
85,825
92,541
81,073
75,724
82,685
73,314
61,102
64,400

8,055,207

7,295,405

5,302,447

4,100,154

345,998

724,045

963,694

1920.

1919.

1920.

1919.

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

S 1,290,071
994,909
,236,948
,287,948
1,283,558
,359,561
,297,973
,164,590
,213,795
,252,441
1,147,304
,192,248

$ 1.004,703

926,199

14,727,340

13,054,803

799,943
982,732
950,060
990,980
1,111,732
,141,575
1.110,213
,148,014
,170,101
,141,906
,397,184

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
SCHEDULE 16.

37

Custody department — Volume of securities handled.
[000 omitted.]
Withdrawn

Pledged

Balance at close of

Held for
1920.

1919.

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

$237,264
1,094,876
757,905
14,778

'$697,722
1,037,382
976,319

$46,2,51
77,182
70,214
12,408

$132,985
190,048
69,045

2,060,299

Total

1020.

$193,643
1,037,607
802,038
27,011

War loan account
Discount department
Safe-keeping
Exchange account

1919.

1920.

3,242,823

2,104,883

3,311,423

206,055

392,078

1919.

SCHEDULE 17. — Custody department — Character oj securities held December, 1920.
Collateral for

War loan
account.

Exchange
account.

Discounted
notes.

Safe-keeping
for banks
only.

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

$8,948,000
3,664,000
1,572,000
5,183,000
28,057,000

$1,315,000

$20,517,000

$7,429,000
693,000

10,215,000

63,407,000
9,219,000

18,795,000
245,000

47,424,000

11,530,000

93,143,000

27,162,000

Total

SCHEDULE 18.

Number of time items received for collection and amounts collected.
[000 omitted.]
ITEMS RECEIVED FROM:

Month.

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

Total

Coupons

Total
Received.
Collection
Items.

Grand
Total.

Amount
Collected.

Federal
Reserve
Banks.

Member
Banks.

Discount

$2,064
1,342
2,037
1,655
2,165
3,142
3.4S0
3,456
2,276
2,373
2,167
2,672

$2,092
2,473
1,933
3,100
3,012
3,070
2,992
3,436
3,287
5,050
5,043
6,431

$2,248
1,905
2,400
2,260
2,422
2,610
3,407
2,632
2,434
2,923
3,294
3,351

$6,404
5,720
6,370
7,015
7,599
8,822
9,879
9,524
7,997
10,346
10,504
12,454

$3,090
1,431
1,381
1,669
1,467
1,890
2,428
1,718
2,095
3,025
2,947
9,000

$9,500
7,151
7,757
8,684
9,066
10,712
12,307
11,242
10,092
13,371
13,451
21,454

$74,794
91,386
88,691
70,550
69,635
75,397
87,915
83,099
65,819
84,693
84,800
72,281

2S.829

41,919

31,892

102,640

32,147

134,787

949,060




Dept.

Certificates of indebtedness sales and payments.

SCHEDULE 19.

Due.

Rate
per cent.

Allotment
to sell.

Number of days
before final
withdrawal
of deposits.

Paid by
other issues
certificates.

Total issued.

Paid by credit.

$11,253,300
7,4(iS,(X)0
17, SOS, 500
S,fil>0,000

$11,253,500
6,015,500
15,490,500
S,71S,000

$10,734,000
fi,502,000
13,527,500
8,333,000

44,890,000

42,083,500

30,096,500

$64,950,000
25.980,000

$52,782,500
17,695,500

$45,331,500
14,876,000

90,930,000

70,478,000

60,207,500

$13,900,000
12,100,000
12,990,000
17,320,000

$12,470,000
8.852,000
14,042,000
18,851,000

$11,288,000
8,576,500
13,536,000
17,758,000

5«,310,000

Dated.

54,215,000

51,15X,500

33,400,000

$10,202,000
18,475,000
3,7X0,500
5,421.000
21,:i2'.!,500
10,059,000
10,455,(KX)
35,035,000

$9,196,000
16,010,000
3.23X.500
4,725,000
19,111,000
9,711,500
9,528,500
33,2»3,000

129,800,000

114,706,000

105,413,500

3,056,000

451,730,000

281,542,500

255,876,000

12,013,000

920 LOAN CERTIFICATES
1920.
July 1
July 15
October 15
November 15

1920.
April 1

April 15
April 15
May 17

i\
5

5i

5?

Total

22
47
47
32
•

1920 TAX CERTIFICATES.
January 2
February 2

1U20.
December 15
March 15

1920.

4}

4i

Totnl

43
50

$6,118,500
2,216,000
8,334,500

1921 LOAN CERTIFICATED
June 15
July 15

1920.

January 3

1921.

May 16

November 15

5}
5!
0
si

Total

30
47
43
31

$523,000
99,500
622,500

1921 TAX CERTIFICATES.
1920.
March 15
July 15

March 15

1921.

September 15
October 15

March 15
March 15
September 15
March 15

December 15

December 15

.

Total
Grand Total




.

4J

6
5?
5}

6
5»

5?
6

$17,300,000
20,700,000
5.200,000
7,1)40,000
27,000,000

8,or>o,ooo
9,900,000

22
30
47
41

41
32
34
34

$89,000
1 074 500
25 000
260,500
182 000
984,000

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON*.

SCHEDULE 20.
State.

39

Subscriptions to certificates of indebtedness classified by states.
1921 Loan.

1920 Loan.

1921 Tax.

1920 Tax.

Total.

$548,500
030,500
904,500
30,125,000
3,599,000
6,276,000

Total

$1,069,500
1,086,500
89,500
37,351,000
7,871,500
6,747,000

$1,054,000
1,015,500
481,000
53.320,000
4,006,500
10,601,000

$1,767,500
2,5«0,500
450,000
81,258,500
11,030,000
17,699,500

$4,439,500
5,293,000
1,925,000
202,054,500
26.307,000
41,323,500

42,083,500

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

54,215,000

70,478,000

114,766,000

281,542,500

United States certificates of indebtedness redeemed from
January 1, 1920, to December 31, 1920.

SCHEDULE 21.

[000 omitted.]

Dated.

August
August
September
December
April
April
April
May

1920
1, 1919
15 1919
2, 1919
1 1919
1 1920
15, 1920
15, 1920
17, 1920

Cash

Due.

Series:
January
February
February
July
Julv
October
Xnvemhpr

Applied
for tax
payments.

Exchanged
for new
issues.

$103

$103
2, 1920
2, 1920
16 1920
1 1920
15 1920
15 1920
15. 1920

Tax Series 1920:
July
15, 1919 March
15, 1920
September 15, 1919 March
15, 1920
September 15, 1919 September 15, 1920
December 1, 1919 March
IS, 1920
December 15, 1919 June
15, 1920
February 2, 1920 March
15, 1920
January
2, 1920 December 15, 1920
Advance payment unmatured issues. . .

$1,256

25,316
34 434
34,190
8 239
9 5S8
5 852
13 073
6,525

870

4,736
716
676
513
378
164

11,392
2.286
52,327
4,834
42,783
15,629
60,948

2,308
1,154
1,606

327,679

Total

7,103

160

Total.

$489
546
722
278

26,572
35,304
38,926
8,955
10,264
6,365
13.451
6,689

15
773
25
15
408
43
994
431

11,896
3,605
53,074
S.127
45,499
16,826
63,548

12,013

346,795

591

SCHEDULE 22. — Items of interest from theschediiles of thigand other reports in connection with the fiscal operation of the United States in this District — 1920.
RECEIPTS.

Proceeds of sales of United States certificates of indebtedness
Federal taxes collected
Salvage of war materials
Transfers from other Federal Reserve banks

$280,000,000
470,000,000
45,000,000
32,000,000

DISBURSEMENTS.

Expenditures disbursed by check
Transfers to other Federal Reserve districts
Certificates of indebtedness redeemed




290,000,000
225,000,000
346,000,000

s

Sales of Treasury savings stamps and cerlificales.

SCHEDULE 23.

[000 omitted.]

State.

Population.

Stainn

777,000
New Hampshire. .
•111,000
Vermont
304,000
Massachusetts.. . . 3,775,000
Rhode Island
025,000
Connecticut!
942,000

January. .

February.

March.

April.

May.

June.

July

August.

SepNoDetomber. October. vember. cember.

Total.

Sales
Per
Capita.

$15
00
19
275
97
64

S20
38
10
155
04
36

$10
49
14
183
07
50

$7
31
!)
152
50
35

$0
21
7
110
49
34

$0
24
5
115
54
30

$11
20
0
82
33
25

$11
Hi
0
09
31
19

$12
IS
3
83
30
12

$7
20
0
94
35
14

$13
13
0
76
27
13

$17
27
12
95
27
18

$174
337
103
1,489
570
350

$0.22
.70
.28
.38
.92
.37

5G0

323

382

290

227

234

177

152

164

176

148

196

3,029

1

.44

t/l

w
Total

6,927,000

> Fairfield County taken over by Second Federal Reserve District.




3
td

8

55

3

Lihcriy loan conversions.

SCHEDULE 24.

Exchanged into
Bonds.

Exchanged by
other Federal
Reserve Banks.

Issued.
41's

2d 4}'s

Outstanding. 1

4J's

3J's
1st Loan interest certificates
Allotment
Other Federal Reserve banks
Total
Firet3J's
First 4's
Second 4's
Victory 4 3's
Victory 3j's
1

4'B

$265,017,000
2,614,700

$168,163,700

163,828,100

$35,582,1X10

$58,800

267,632,600

168,163,700

63,828,100

35,582,000

58,800

168,163,700
73,218,250
408,530,000
317,644.500
54,265,650

9,390,150

$880,550
65,704,400
363,808,850

3J's

$304,550
$10,238,100

$4,529,550

157,588,4501
7,513,8501
44,661,150!
307,406,4001
40,736,100<

I
w
W
05
M
W
M

w
Difference between amount issued by this bank and amount presented for conversion.




o

3

42

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

SCHEDULE 25.

Coupons of United States obligations redeemed, 1920.
Description.

First Liberty loan 3 i %
First Liberty loan conv. 4%
First Liberty loan conv. 4J%
First Liberty loan 2nd conv.
Second Liberty loan 4%
Second Liberty loan 4J%
Third Liberty'loan 4 } %
Fourth Liberty loan 4J%
Victory Liberty loan 35%
Victory Liberty loan 4?%
Certificates of indebtedness
War finance
Other United States coupons
Totals




Number.

Amount.

$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
10,011
9,708

$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
1,309,910.58
8,836,456.49
4,967,482.69
265,275.00
61.503.47

8,140,625

57,407,616.01 |

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
SCHEDULE 26.

43

Change in membership of national banks.
Date of change.

City.

Name of Bank.

Warren, Massachusetts..
Richford, Vermont
Boston, Massachusetts. .
Arlington, Massachusetts

First National Bank
Richford National Bank..
Haymarket National Bank
Arlington National Bank

Reason.

ORGANIZED.

March 6, 1920
March 22, 1920. . .
August 9, 1920. . . .
December 7, 1D20.

New Bank
Do.
Do.
Do.

LIQUIDATED.

Clinton, Massachusetts.. First National Bank
Northampton,

March 1, 1920

Massa- Hampshire County Na-

Harwich, Massachusetts Cape Cod National Bank

SCHEDULE 27.

City.

Bangor, Maine
Portland, Maine
Sanford, Maine
Arlington, Massachusetts
Boston, Massachusetts
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Cambridge, Massachusetts
Do.
Fitchburg, Massachusetts
Gloucester, Massachusetts
Greenfield, Massachusetts
Holyoke, Massachusetts
Lawrence, Massachusetts
Lynn, Massachusetts
New Bedford, Massachusetts . . .
Newton, Massachusetts
Norwood, Massachusetts
Salem, Massachusetts
Waltham, Massachusetts
Winchester, Massachusetts
Worcester, Massachusetts
Providence, Rhode Island
Do.
Do.
New Britain, Connecticut
New Haven, Connecticut
South Manchester, Connecticut
Waterbury, (Jonnecticut




Converted into Trust
Company.

April 20, 1920 ..
August 1, 1920

Do.
Do.

List of member trust companies.
Name of Bank.

Merrill Trust Company (branches at
Dexter and Jonesport)
Fidelity Trust Company
Sanford Trust Company
Menotomy Trust Company
American Trust Company
Beacon Trust Company
Commonwealth Trust Company
Exchange 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
U nited States Trust Company
Charles River 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
Industrial Trust Company (branches at
Bristol, Newport, Pascoag, Pawtucket,
Warren, Woonsocket, Westerly, Wickford)
Rhode Island Hospital Trust Company.. .
Union Trust Company (branches at East
Greenwich, Olneyville)
New Britain Trust Company
Union & New Haven Trust Company . . .
Manchester Trust Company
Colonial Trust Company

Date admitted.

March
14, 1918
March
18, 1918
September 9, 1920
November 8, 1918
August
31, 1917
January 15, 1918
February 12, 1917
September 14, 1920
June
9, 1917
May
1, 1918
January 13, 1919 I
December 10, 1920
December 4, 1917 :
December 10, 1918 ,
August
24, 1915
January 20, 1918
April
9, 1918
December 11, 1917
March
6, 1918
July
26, 1917
June
4, 1919
April
21, 1919
January 19, 1918
February 27, 1918
September 25, 1918
June
5, 1919
November 5, 1917
August
11, 1917
September 25, 1918
April
3, 1919
May
29, 1917
December 26, 1917
November 9 1917
March
13, 1918
September 13, 1918
August
21, 1918
December 8, 1917
December 30, 1918
April
6, 1918

44

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

SCHEDULE 28.

Member and non-member eligible Stale banks compared.
[000 omitted.]
Member State banks.

State.

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

SCHEDULE 29.

Number.

Non-member eligible State banks.

Re-

Number.

$825

$25,685

24,750
7,000
1,550

26,396
8,500
1,225

600,240
172,007
16,763

41
8
27
68
8
24

34,200

36,946

814,695

176

Capital.

Surplus.

3

$900

29
3
4
39

sources.

Resources.

$3,355
555
1.601
18,285
1,750
4,855

$2,308
683
1,501
14,055
2,061
3,650

$81,093
14,368
46,467
270,668
37.760
79,872

30,401

24,858

530,228

Classification according to nature of business of unsecured loans
of $100,000' and over as of December 23, 1920.
Business.

Tanners and Leather Dealers
Manufacturers of Tires and Rubb'. Goods
Manufacturers of Autos, Trucks and Accessories
Packers and wholesale meat dealers
Manufacturers, wholesale and retail shoe dealers
Manufacturers cotton goods, yarns, etc
Manufacturers of machinery and tools
Wool, worsted, yarns, etc.
Manufacturers of druggists' supplies and chemicals . .
Manufacturers of electrical supplies
Manufacturers of fertilizers
Manufacturers of explosives and firearms
Department, dry goods stores and mail-order houses .
Stationery and office supplies
Silk, furs and clothing
Grocers and eanners
Lumber, contractors' and builders' supplies
Hardware
Iron, steel and metals
Manufacturers of confectionery and cocoa
Tobacco
Farm products
Manufacturers of pulp and paper
Manufacturers of musical instruments
Total. .
1

Surplus.

Capital.

Amount.
$7,270,000
0,650,000
5,881,000
5,570,000
5,005,000
4,715,000
4,680,000
4,265,000
3,970,000
3,825,000
2,875,000
2,750,000
2,475,000
1,915,000
1,810,000
1,715,000
1,690,000
1,635,000
1,300,000
1,049,000
1,000,000
820,000
500,000
400,000
73,765,000

Per Cent.
9.8°
9.0
7.9
7.6
6.8
6.4
6.3
5.7
5.4
5.2
3.9
3.7
3.4
2.5
2.5
2.4
2.3
2.2
1.7
1.5
1.3
1.2
.7
100.0

226 makers borrowing $100,000 and over make up $73,765,000 or 79% of the total unsecured loans
amounting to $93,329,000 at close of business December 23,1920.




Amounts due to and loans to member banks by States, December 31, 19SS0 and 1919.

SCHEDULE 30.

[000 omitted.]
Loans to Member Bunks.
Reserve Accounts.

State.

Secured.
1919.

1920.

Ratio of Rediscounts
to Reserve Accounts.

Total.

1020.

Unsecured.

1919.

1920.

1919.

1920.

1919.

1920.

1919.

$5,423
2,934
2,104
85,217
9,009
9,263

Total

$4,872
2.91S
1,885
90,321
S,011
9,285

$1,090
1,942
701
57,230
407
6,249

$3,132
3,440
1,600
84,024
7,730
0,944

$024
608
533
83,409
923
912

$1,828
410
015
76,207
435
1,002

$2,320
2,550
1,294
140,639
1,330
7,161

84,900
3,802
2,215
100,891
8,165
7,946

42.7
80.9
59.7
165.0
13.7
77.3

101.8
132.3
117.5
178.1
101.9
85.5

114,070

Maine
New Hampshire.. .
Vermont
Massachusetts
Rhode Island
Connecticut

117,292

68,285

107,476

87,009

80,563

155,294

188,039

135.4

160.3

Reserves of national banks in New England as reported by the Comptroller of the Currency.

SCHEDULE 31.

[000 omitted.]

1920.

January 1
February 2 8 . . . .
May 4
June 30
September 8 . . . .
November 1 5 . . .

Required
reserve.

$69,254
70,912
72,271
73,184
73,445
74,554

i Deficit.




Reserve
carried.

$73,131
74,044
77,829
70,528
75,378
77,851

Excess
reserve.

$3,S77
3,732
5,558
3,344
1,933
3,297

1919.

January 1 . . . .
March 4
May 12
June 30
September 12.
November 17.

Required
reserve.

$04,129
60,905
65,907
63,810
69,095
69,765

Reserve
carried.

$67,162
04,269
66,219
60,421
70,096
75,454

Excess
reserve.

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

1918.

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

Required
reserve.

$55,557
55,806
56,021
56,392
59,041
63,472

Reserve
carried.

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

Excess
reserve.

$4,391
1,135
5,253
1,492'

a>
357 i

46

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

SCHEDULE 32.

Comparison of loans and deposits of Boston and country banks.
[000 omitted.]
Loans to Member Banks. 1

Reserve Deposits of
Member Banks.

% of Boston to total.

1920.
In Boston.*

January

2
9

16
23
30

February

6
13
20
27

March

5
12

19
26

April

2
9

16

23
30

May
June

7

14
21

28
4
11
18
25

July

2
9

16... .

23

August

30
6
13
20

27

September 3

10
17.
24

October

1

8

15
22
29
November 5
12
19
26
December 3..
10
17.

24
31
1

All Others.

In Boston.

All Others.

$126,250
104,122
104,004
99,196
114,735
122,507
142,989
136,787
139,131
131,241
125,574
122,240
135,049
137,487
111,186
108,420
109,661
102,925
100,455
114,617
115,892
113,322
115,785
105,875
106,245
100,306
111,672
99,518
90,494
83,496
77.356
76,276
78,512
03,946
93,116
84,622
88,169
82,346
96,197
104,033
103,704
85,541
78,706
84,467
92,959
97,782
106,131
113,412
116,907
115,736
112,621
132,086
122,009

$58,406
55,638
52,505
49,624
46,283
46,376
45,542
41,211
41,293
37,098
37,240
36,008
40,403
37,792
35,394
31,920
30,865
31,925
29,621
34,833
32,418
36,142
34,128
37,105
33,089
33,781
27,165
25,744
27,869
20,379
23,856
25,332
26,370
26,455
25,519
28,721
26,729
25,373
26,479
27,535
26,172
36,546
22,444
25,452
26,372
22,961
19,178
31,099
29,641
31,696
30,594
31,019
53,962

J68.976
71,487
72,215
62,970
64,065
61,060
64,590
63,131
68,858
65,106
63,335
62,202
62,791
63,572
63,793
65,537
70,032
62,097
59,838
65,357
84,471
66,424
68,669
65,362
61,234
65,808
66,001
67,253
66,580
68,631
67,244
64,140
66,615
64,446
64,862
64,082
63,811
65,339
65,090
66,872
64,619
71,433
66,600
66,772
65,260
65,159
63,918
61,666
61,940
64,087
64,013
61,430
60,719

$52,188
54,782
52,789
51,184
49,656
48,593
54,377
52,222
52,390
51,778
51,442
52,057
51,426
51,640
51,894
53,346
49,190
51,828
50,178
55,825
51,732
53,386
51,517
52,103
54,368
52,139
51,498
50,932
54,561
53,401
51,693
53,586
54,493
52,508
53,914
52,798
56,076
55,261
53,924
52,328
51,767
59,442
55,282
55,697
55,043
55,455
51,525
51,936
52,052
55,241
53,107
51,704
53,951

Does not include liability on acceptances.




Loans.

68.3%
65.1
06.4
66.6
71.2
72.5
75.8
76.8
77.1
77.9
77.1
77.2
76.9
78.4
75.8
77.2
78.0
70.3
77.2
76.6
78.1
75.8
77.2
74.0
76.0
74.8
80.4
79.4
76.4
80.3
76.4
75.0
74.8
78.0
78.4
74.6
76.7
76.4
78.4
79.0
79.8
70.0
77.8
76.8
77.9
80.9
84.6
78.4
79.7
78.5
78.6
81.2
69.3

Deposit.

56.9%
52.8
57.7
55.1
56.3
55.6
54.2
54.7
56.7
55.7
55.1
54.4
54.9
55.1
55.1
55.1
58.7
54.5
54.3
53.9
56.8
55.4
57.1
55.6
52.9
55.7
56.1
56.9
54.9
56.2
56.5
54.4
55.0
55.1
54.6
54.8
53.2
54.1
54.6
56.1
54.5
54.5
54.6
54.5
54.2
54.0
55.3
54.2
54.3
55.5
54.6
54.2
52.9

Comparison of items reported by member hanks in selected cities on the first Friday of each month, 1020.

SCHEDULE 33.

[000 omitted.]
Member Banks in Springfield, Providence, New Haven, Hartford.
United
States
securities
owned.

1020.

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

$41,900
38,105
35,390
33,399
35.3B9
35,690
34,550
33,893
37,505
37,6(15
37,808
37,615

Loans
Loans
Borrowed Ratio of
All other
Total
secured
from Fed- borrowings
Net
secured
to total
loans and
loans
eral
demand
by United by other
invest- and invest- Reserve loans and deposits.
storks and
States
investments.
ments.
obligations. bonds.
bank.
ments.
$21,SOS
17,343
14,438
13.S12
10,5,i4
9,758
9,295
8,702
8,285
8,427
7,828
7,774

$44,532
46,205
47,199
47,391
47,063
45,682
45,215
45,152
43,858
45,503
47,611
44,49(1

S208.660
211,218
209,874
211,450
220,282
220,469
218,048
221,177
225,279
210,303
224.337
222,355

$316,996
313,021
306,901
306,052
313.86S
311,608
307,108
308,924
314,927
310,898
317,584
312,240

I

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

$15,201
12,882
9,731
8,203
7.651
7,018
4,900
4,955
7,21,5
6,052
4,948
7,810

4.7%
4.1
3.1
2.0
2.4
2.4
1.5
1.6
2.2
1.9
1.5
2.5

Total
deposits.

Reserve
with
Federal
Reserve
bank.

2,1 It
385
1,188
2,207
1,428
2,133
1,106
3,208
4,104
1,495
276

$200,742
279,783
270,167
280,119
287,935
283,543
287,851
287,256
288,289
296,095
295,244
283,171

$16,158
14,941
15,918
15,219
10,141
16,313
15,898
16,705
16,479
16,200
17,006
16,458

$31,101
9,985
1,716
5,582
9,202
1.974
5,801
3,141
3,071
11,034
2,778
1,065

$703,843
655.4S8
654,944
038,284
077,800
080,020
080,807
681,800
671,514
687,074
077,421
036,721

$68,970
61,061
65,106
03,572
59,838
68,609
00,001
64,140
64,082
65,997
64,290
60,774

Time
deposits.

Government
deposits.

$193,468
186,946
183,507
185,327
190,799
187,597
190,310
188,297
187,038
193,836
190,741
181,201

$87,726
90,723
92,275
93,604
94,869
94,518
95,408
97,853
98,043
98,755
103,008
101,094

$9,548

$631,310
602,631
608,803
593,349
024,426
035,551
031,255
030,181
622,180
626,128
623,032
586,499

$41,432
42,872
44,425
39,353
44,178
43.095
43.811
42,508
46,263
49,912
51,011
49,157

Member Banks in Boston.1
$38,7«7
30,305
27,287
20,311
36,829
35,789
21,949
19,428
18,563
17,077
15,497
15,332

$76,123
70,683
04,281
59.598
49,729
48,057
46,220
42,891
39,280
39,790
39,002
39,184

$163,798
155,6111
149,787
147,227
149,293
145,098
140,834
138,511
138,993
147,850
149,029
147,709

$516,982
521,151
539,479
542,758
544,664
566,406
573,597
570.450
507.953
587.702
575.963
503,580

$705,070
777,800
780,834
769,804
780,515
795,350
788,606
771,280
764,789
792,419
779,491
705.S05

'Does not include figures for state banks admitted to membership during 1920.




$120,250
122,507
131,241
137,487
100,455
115,785
111,672
70,276
84,022
103.283
92.059
116,507

15.1%
15.7
16.8
17.8
12.8
14.5
14.1
9.8
11.0
13.0
11.8
15.2

48

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

SCHEDULE 34.

Acceptance liability of national banks in District No. 1.
[000 omitted.]

1919.

1920.

February 28 $68,948
May
4 66,861
June
so 59,809
September s 48,738
November 15 53,479
December 29 54,490

SCHEDULE 35.

March
May

June
September
November
December

4 $44,427
12 47.05S
XI) 53,933
12 62,782
IV 62,276
31 71,006

1918.

1917.

4 $51,417
March
10 49,704
May
2!> 48,651
June
31 45,298
August
November 1 52,486
December 31 47,316

March
May

June
September
November
December

S $29,406
1 32,374
2(1 45.590
11 34,714
20 41,290
31 49,131

Acceptance liability of all banks in District No. 1.
Accepted by:—

Non-member banks (Massachusetts)
Acceptance Corporations and Private Bankers

Total




Nov. 15, 1920. Nov. 17, 1919.

$53,479,000
22,686,000
2,172,000
10,193.000

$62,276,000
16,081,000
4,(527,000
21,33S,000

88,530,000

104,922,000

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

49

SCHEDULE 36.—Member banks authorized to accept drafts and bills of exchange up
to 100% of their capital and surplus.
Bank.

Location.

Granted.

Capita] and
surplus.

Beacon Trust Company
Boston, Massachusetts
Commonwealth Trust Company..
do
First National Bank
do
Fourth-Atlantic National Bank. .
do
International Trust Company.. . .
do
Merchants National Bank
do
National Shawmut Bank
do
National Union Bank
do
Old Colony Trust Company
do
Second National Bank
do
Webster & Atlas National Bank
do
State Street Trust Company
do

$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
January 26, 1916. . 5,000,000
July 26, 1916
2,000,000
January 25, 1918. . 4,500,000

Dedham National Bank
Dedham, Massachusetts
Massasoit-Pocasset National Bank Fall River,
do.
Safety Fund National Bank
Fitehburg,
do.

April 11, 1918

Hartford-Aetna National Bank.. ,
Phoenix National Bank

October 27, 1917. .
July 1, 1918

4,000,000
1,500,000

May S, 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

300,000

November 13, 1917 1,000,000
October 5, 1 9 1 7 . . .
600,000

Hartford, Connecticut
do.
do
First National Bank
New Bedford, Massachusetts
New Bedford Safe Deposit &
Trust Company
do.
do
First National Bank
New Haven, Connecticut.. . .
Thames National Bank
Norwich,
do

December 18, 1919

1,000,000

September 12,1919
August 3, 1920
August 5, 1919.. . .

700,000
1,700,000
1,550,000

Canal National Bank
Portland, Maine
Portland National Bank
do. do
Blaekstone-Canal National Bank. Providence, Rhode Island. . .
Merchants National Bank
do.
do
National Bank of Commerce
do.
do
Providence National Bank

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

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

Springfield National Bank

January 25, 1918. .

1,000,000

May 4, 1916

2,000,000

do.

Merchants National Bank




do

Springfield, Massachusetts.. .
Worcester,

do

50

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

SCHEDULE 37.

Other accepting member banks.

Bank.
Abington National Bank
First National Bank
First National Granite Bank
First National Bank
Beverly National Bank
American Trust Company
Citizens National Bank
Massachusetts Trust Company
Mattapan National Bank
Metropolitan Trust Company
National Kockland Bank
National Security Bank
State Street Trust Company
Brockton National Bank
First National Bank
Howard National Bank
Manufacturers National Bank
First National Bank
National State Capitol Bank
National Bank of Fairhaven
Fall River National Bank
First National Hank
Mctacomet National Bank
Cape Ann National Bank
Gloucester National Bank
First National Bank
Second National Bank
Merchants National Bank
North Adams National Bank
Thames National Bank
Orange National Rank
Chapman National Bank
Portland National Bank
Industrial Trust Company
Mechanics National Bank
National Exchange Bank
Rhode Inland Hospital Trust Company
Union Trust Company
Rocklarul National Bank
Peoples National Bank
Chapin National Bank
Chicopee National Bank
Third National Bank
Citizens National Bank
Mechanics National Bank

SCHEDULE 38.

Location.

Capital and
surplus.

Abington, Massachusetts
Adams, Massachusetts
Augusta, Maine
Bath, Maine
Beverly, Massachusetts
Boston, Massachusetts
do
do
do
do
do
do
do
Brockton, Massachusetts
Brunswick, Maine.
Burlington, Vermont
Cambridge, Massachusetts. . .
Concord, New Hampshire
do
Fairhaven, Massachusetts.
Fall Hiver, Massachusetts....
do
do
Gloucester, Massachusetts. . . .
do
H&verhill, Massachusetts
Maiden, Massachusetts
New Bedford, Massachusetts.
North Adams, Massachusetts.
N rwich, Co ecticut.
Orange, Massachusetts
Portland, Maine
do
Providence, Rhode Island. . .
do
do
do
do
Roekland, Maine
Southbridge, Massachusetts.
Springfield, Massachusetts. .
do
do
Waterbury, Connecticut
Worcester, Massachusetts. . .

$100,000
120,000
250,000
480,000
450,000
3,500,000
1,125,000
1,500,000
220,000

900,000
800,000
750,000
4,500,000
800,000
100,000
700,000
230,000
400,000
450,000
150,000
000,000
550,000
1,000,000
250,000
200,000
450,000
245,000
2,500,000
450,000
1,550,000
200,000
250,000
600,000
7,000,000
600,000
1,250,000
7,000,000
1,500,000
250,000
125,000
750,000
1,000,000
1,000,000
500,000
600,000

Non-member accepting banks and other acceptors in this district.
Bank.

Federal Trust Company, Boston

Capital and
Surplus.

51,350,000
Brookline Trust Company,
400,000
Brookline, Massachusetts
Casco Mercantile Trust Company,
" "700,666'
Portland, Maine:
Union Trust Company, Springfield, Massachusetts 1,500,000




Bankers.

Brown Brothers & Company,
Boston, Massachusetts.
Fidelity Capital Corporation,
Boston, Massachusetts.
First National Corporation,
Boston, MassachusettsLee, Higginson & Company,
Boston, Massachusetts.
J. B. Moors & Company,
Boston, Massachusetts.
Shawmut Corporation,
Boston, Massachusetts.

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

SCHEDULE 39.

Banks granted fiduciary poicers under the Federal Reserve Act.
Location.

Date granted.

January 2, 1920
January 14, 1920. . .
Do
January 28, 1920.. .
January 29, 1920.. .
April 22, 1920
Do
May 11, 1920
July 15, 1920
Septembers, 1920. .
October 12, 1920. . .
October 27, 1920 .
December 23, 1920
1

Naugatuck, Connecticut
Boston, Massachusetts
Hartford, Connecticut.
Waterville, Maine
Hartford, Connecticut
Norwich, Connecticut
Yarmouthport, Massachusetts.
Koxbury, Massachusetts
Bennington. Vermont
Boston, Massachusetts
Springfield, Massachusetts. . . .
New Haven, Connecticut
Rutland, Vermont

Supplementary Application.




Bank.

Naugatuck National Bank
Citizens National Bank
Hartford-Aetna National Bank
Ticonic. National Bank
Colonial National Bank
Thames National Bank
First National Bank
Peoples National Bank
First National Bank
•National Shawmut Bank
Third National Bank
New Haven Bank, N. B. A.
Baxter National Bank

51

to

Discount

SCHEDULE 40.

rates.

Commercial paper.
Member banks collateral
notes.

Agricultural
and Live
stock paper.

Trade
Acceptances.

Commodity
Paper.

15 days or
less.

91 days to
six months.

90 days or
less.

90 days or
less.

Secured by
United States
certificates of
indebtedness.

Secured by
Government war
obligations.

Date.

1917.
March 21. . . .
August 1
October 2 3 . . .
December 5. ..
December 12.
1918.
January 7 . . . .
April 8
1919.
November 4. .
December 12.
1920.
January 3 . . . .
January 2 3 . . .
February 27. .
June 4

3}
31
3J
4
4
4
4>

i\
4}
6
6
7

10 to 00
dayB.

4
4
4

5
5
5
5

31'

5

4
4
4

5
5

4A

5
5

4}

45

5

41

(i

fi
fi
7

7

41
5

45'
4!
43
6
7

41
fi
G

4
4
4

15 days.

34
31»
31

31

90 daya or
less.

90 days or
less.

4
41'

4
4




H

w

41
41

ti

41-41
4J-41

41
51

4!
Si
Si
6

58

41
41
5

51

> June 27, 1917.— Trade Acceptances under 91 days 4 per cent.
* October 1, 1918, to February 15, 1919, 4 per cent on customers' notes carrying coupon rate of interest and Becured by fourth Liberty loan bonds.
April 12, 1919, when secured by bonds of the War Finance Corporation 15 days or less 5 per cent — 1C to 90 days 5] per cent.
* Rate discontinued.
5 Customers of non-member banks 4 per cent.
6
Trade Acceptances, 15 days or less, 4 per cent.
1

w
o
w

w
o
w
w
>

31
31 s

3!
6

10 to 90
days.

Bankers'
Acceptances,

w
o

3
3

Money rates in Boston,

SCHEDULE 41.

Kind.

Commercial paper discounted:
Over 90 days
Commercial paper purchased:
Over 90 davs
Bankers' acceptances:
Endorsed

January.

February.

March.

6-10
6

8-10
6-8J

5J-6
6-7

6-7
6-7

6-10
6-7
6-7
6-7

5|-6
6-7

6-04
6-6i
51-54
31-5}
5-6
0-04
4.60
0.00

5-54
5-54
5-J-6

6-0*
14.39
\4.85
Loans secured by U. S. war
4i-6
1

54-64

64-7
04-7
5}-5^
5|~6
5-6
6-01
5.49
6.05
54-84

April.

May.

June.

3
July.

August.

September.

October.

November.

December.

H
O
1
M
O
M

0-8

0-8

6-8

8-9

8

8

8

8

8

0|-7

04-74

7J-8

7 J-8

7J-8

74-8

74-8

74-8

0-7
OJ-7
nj-7
7
5i-8|
6-04

6-7
0-7

6i-74
6-8
0-8

6-8
6J-8
7}-S
7I-8J

6-8
64-8

6-8
6j-8

6-8
6 J-8

o-s

0-8
64-8

7}-8
71-8J

73-8
75-8

fil-Bi
08-01
74-8
0-7
5.93
6.39

61-61
6|-6|
0-7
7}-8
5.92
6.25

7}-8
7{-8
61-6 J*
61-65
74-8
4.98
5.73

71-8
7}-8
6-6J
61-6J
6-7
74-S
5.34
5.74

6-7

6-7

6-7

6-7

6-64
5.46
5.94
5J-7

7-71
7-7 j
6-0|
OM!
6-64
6-0 J
5.65
6.30
54-7

74-8
7J-8
0-64
0-0 i
6-04
0-8
5.90
6.95

8 Mi
0i-61
6-04
74-8
5.95
7.00

7f-8
71-81
6J-6|
01-01
6-7
74-8
5.79
6.85

6-7

6-7

6-7

04-8

M
M
M

Period ending the 15th of each month.




to

SCHEDULE

2

Debits to depositors' accounts by the Clearing House banks in the larger cities of this district.

42.

[000 omitted.]

1920.

Bangor
Fall River
Hartford
Holyoke
Lowell
Manchester 1 . . .
New Bedford. .
New Haven... .
Portland
Providence....
Springfield .. .
Waterbury....
Worcester.....
Total. .

Mar.

Apr.

May.

Jan.

Feb.

$13,S89
40,337
103,372
17,710
22,143
36,057
82,720
30,780
176,768
69,038
31,447
74,354

$11,219 $14,884 $16,251 • $14,575
38,423
43,226
39,338 48,066
104,258
103,949
92,586 121,970
16,517
17,757
17,796
18,321
23,870
26,256
25,463
20,520
23,004 • 21,396'
20,136'
39,736
38,707
33,139 44,200
78,051
81,160
69,179 95,904
34,065
37,459
33,941
27,849
164,877
195,000
169,483
149,450
6S,506
86,599
69,670
64,36fi
29,805
30,488
30,253 28,855
77,555
91,651
80,614
67,940

698,615

024,160

808,601

691,914

709,132

June.

July.

Aug.

Sept.

Oct.

Nov.

Dee.

Total
1920.

Total
1919.

$149,379
431,320
1,102,133
169,752
269,840

$18,447 $14,908
35,309
48,863
102,557
114,918
17,691
21,293
24,162
30,607
20,206 i 22,805 '
33,210
44,966
85,349
100,466
33,798
43,233
158,226
202,845
70,919
84,618
29,756
36,045
79,089
94,87!)

$14,499 $10,053 $17,663
35,544
32,097
34,813
122,061
101,359
91,513
19,536
17,507
10,915
26,641
23,927
23,391
20,284 ' 23,221 i 20,502 '
37.364
30,603
34,202
93,419
82,250
74,793
45,482
43,001
34,521
172,329
177,472
131,731
78,132
67,730
64,299
38,654
36,500
27,657
86,708
82,100
73.121

$15,722
36,838
95,672
18,225
25,029
21,388
32,190
80,314
38,277
152,025
76,230
29,327
77,498

$19,865
34,403
121,596
17,815
26,064
26,462 i
29,529
92,070
44,929
185,044
75,681
39,000
87,721

$190,975
407,347
1,278,811
217,083
298,073
225,404 i
433,063
1,015,675
447,335
2,035,250
875,788
387,787
973,230

841,ISO

621,455

774,923

677,347

773,807

684,974

715,209

w
o
H
O

368,308
859,295
352,415'
1,731,811
760,503
362,601
839,549

8,621,317

14,942,024

Grand Total. 2,0515,300 1,806,860 2,360,156 1,981,732 1,955,23S 2,372,368 1,892,041 1,688,148 2,163,026 1,939,001 1,903,7.40 2,193,607 24,312,337

B
w

7,396,996

1,357,745 1,182,700 1,551,555 1,289,818 1,246,100 1,531,188 1,207,067 1,066,693 1,388,103 1,223,852 1,226,393 1,419,800 15.C91,020

M
M

22,339,020

Boston

1
1

Not included in total.
Estimated.




td
O

w

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

SCHEDULE 43.

55

Permits for new construction in the leading cities of New England.
1919.

1920.
City.
Number.

Number.

Amount.

Amount.

Per cent
change
in year.

$1,044,879
2,112,905
1,472,432
9,074.216
1 881 190
4,054,075
636.463
2,159,538
4,239,326
3 512 902
412,010
5,061,413
3,681,787

358
264
234
812
338
501
399
385
574
849
314
1,022
1,432

1826,857
1,103,870
812,311
7,935,923
1,366,313
2,5B5,090
1,124,351
1,326,176
5,026,952
6,459,252
1,587,033
3,773,293
5,624,911

+26.37
+91.41
+81.26
+ 14.34
+37 68
+5S.05
-43.39
+62.84

Worcester

434
366
213
679
302
420
401
313
1S4
643
258
922
1,113

Total outside of Boston . . . .
Boston

6,248
1,045

39,343,136
17,473,132

7,482
1,237

39.532,332
13,936,206

.48
+25.37

7,293

56,816,268

8,719

53,468,538

+ 6.26

Fall River

..

Portland

Total

SCHEDULE 44.

-15.67
—45.61
-74.04
+34.14
-34.54

Imports and exports through the port of Boston, 1920.
1000 omitted.]
Month,
1920.

Excess of
Imports.

Imports.

Exports.

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

$19,187
9,573
17,867
16,147
23,416
21,026
14,727
12,671
15,210
15,179
13,214
14,585

$46,749
48,419
60,199
54,401
21,489
39,749
29,256
35,131
16,368
14,441
14,058
12,492

$27,562
38,846
42,332
38,254 1
1.927
18,723
14,529
22,460
1,158
7381
844
2.0931

Total. .

192,802

392,752

199,950

'Excess of exports.

Commercial failures in New England.

SCHEDULE 45.
1920.

State.

Liabilities.

No.

in

$1,373,049
252,090
420,044
10,970,133
339,346
6,979,424

883

20,334,092

No.

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

1919.

74
36
443
81
230




1918.

1917.

Liabilities.

No.

Liabilities.

No.

Liabilities.

85
20
15
427
71
194

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

135
38
36
739
124
272

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

151
49
4S
395
105
319

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

812

12,812,487

1,344

19,885,360

1,067

22,150,650

56

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

SCHEDULE 46.— Number of employees in the various departments December 31, 1920,
and December 31, 1919.
1920.

Department.
Male.

1919.

Female.

BANK?

Officers'
Federal Reserve agent's
Chief clerk's

Note teller's
Collateral

Return teller's

13

10
1
1.5
5
1
28
17
10
2
11
2
6
2
25
21
2
3
2
1
1

12
2
3
1
2
102
10
16
1
12
4
13
13
4
1
1

Total.
13
22
3
18
6
3
130
33
26
3
23
6

21
6
3
3
2
1

Male.

12

5
1
11
4
1
18
20
11
1
6
1
8
2
11
11
2
2
2

Female.

Total.

12

1

14
3
13
5
5
104
32
29
2
9
4
22
2
22
11
5
2
3

9
2
2
1
4
86
12
18
1
3
3
14
11
3

1

1

3

5

3

3

6

180

206

386

133

173

306

76

Total

2

61

137

65

59

124

TRANSIT DEPARTMENT:

City
Government checks
Mailing
Total

31
19
7
1
9

5

31
19
7
6
9

25
20
11
1

6

25
20
11
7

143

60

209

122

65

187

63
3

92
1

155
4

55
7

73
1

128
8

66

93

159

62

74

136

389

365

317

312

BOND (FISCAL AGENCY):

Bond
Certificate of indebtedness.. . .
Total
Grand Total

]
2

754'

Does not include 22 employees of War Savings Organization.
Does not include 126 employees of War Savings Organization.




629 «

57

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
CHART A.

CASH RESERVE
HELD BY FEDERAL RESERVE BANK
AGAINST DEPOSIT AND NOTE LIABILITY
2B0

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JAN. FEB. MAR. APR.
Federal Reserve Bank of St. Louis

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MAY JUNE JULY AUG. SEPT. OCT.

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58 [ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
CHART B.
PERCENTAGE OF CASH RESERVE ACTUALLY HELD
AGAINST COMBINED DEPOSIT AND NOTE LIABILITY

/S/9
1910

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NOV. DEC

59

60

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

CHART D.

MONTHLY AVERAGE RESERVE RATIO
1920

1919

RATIO
A

M

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ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

CHART

61

E.

RESERVE ACCOUNTS OF MEMBER BANKS
CARRIED IN FEDERAL RESERVE BANK
ISO

160

I4D

140

20

130

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ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
CHART

F.

FEDERAL RESERVE NOTES
IN ACTUAL CIRCULATION

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ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
CHAKT

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BILLS DISCOUNTED AND BOUGHT
ELIMINATING TRANSACTIONS
OTHER FEDERAL RESERVE BANKS

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DEC.

63

64

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
CHART H.

HDLDINGS OF ACCEPTANCES
PURCHASED IN THE OPEN MARKET
80.

,80

JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT. OCT.




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175

1920 1921
1918 1919
1917
1915

IVIN
ICES
COST
PRICE
H0I3




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




68

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

EXHIBIT A—Movement of Principal Earning Assets, Reserves, Federal Reserve Note and
the calendar
[000 omitted.]
Discounted bills.
Discounted for member banks
in this district.

Pate,
1820.

Total
earning
assets.

Total
held.

Discounted
for other
Federal
Reserve
banks.

B.
Secured
by
Total.

January 2 . .
January 9
January 16
January 23
January 30
February 6
February 13
February 20
February 27
March 5
March 12
March 19
March 26
April 2
April 0
April 16
April 23
April 30
May 7
May 14
May 21
May 28
June 4
June 11
June 18
June 25
July 2
July 9
July 16
July 23
July 30
August 6
August 13
August 20
August 27
September 3
September 10
September 17
September 24
October 1
October 8
October 15
October 22
October 29
November 5
November 12
November 19
November 26
December 3
December 10
December 17
December 23
December 30




8237,434
220,358
217,622
206,674
234,964
240,141
235,681
216,538
218,642
226,167
232,239
211,311
235,795
235,146
213,817
223,110
210,415
207,798
220,828
233,927
227,103
226,690
222,934
225,126
212,436
201,896
238,542
224,338
210,624
203,059
205,701
210,773
213,637
230,185
227,731
257,769
266,945
206,853
236,470
236,388
234,523
237,923
240,195
245,182
220,055
235,653
231,414
220,098
238,856
231,802
210,911
223,275
220,324

$184,650
159,760
156,509
148,820
161,018
168,883
188,531
177,998
180,424
188,339
192,815
173,242
195,865
185,417
163,760
176,260
160,786
157,085
166,056
178,740
169,814
169,830
168,366
170,318
159,868
146,216
178,215
166,168
152,643
144,728
149,581
163,661
166,754
188,306
185,546
210,357
187,711
133,627
183,331
184,212
182,325
155,288
174,079
191,117
170,719
183,157
167,931
172,165
172,296
165,228
158,514
181,928
178,543

$20,000
30,000
14,995
23,399
11,463
18,000
35,920
20,260
22,126
35,980
29,290
21,503
20,366
17,402
27,117
20,533
12,128
34,461
35,994
34,280
36,495
44,923
59,514
60,429
67,916
66,911
97,014
72,812
45,308
60,655
52,641
52,450
43,694
72,926
81,199
51.389
5.5,414
35,604
27,217
24,749
17,796
15,298
19,926
16,575

government war
obligations

$184,656
159,760
156,509
148,820
161,018
168,883
188,531
177,998
180,424
168,339
162,815
158,247
172,466
173,954
145,760
140,340
140,526
134,959
130,076
149,450
148,311
149,464
150,964
143,201
139,335
134,088
143,754
130,174
118,363
108,233
104,658
104,147
106,325
120,390
118,635
113,343
114,899
108,319
122,676
131,571
129,875
111,594
101,153
109,918
119,330
127,743
132,327
144,948
147,547
147,432
143,216
162,002
161,968

$123,914
105,100
108,935
105,562
112,933
116,703
106,651
100,581
104,470
97,509
98,917
88,339
90,746
85,811
77,695
83,017
75,866
82,885
79,645
88,945
91,753
94,758
88,498
83,994
76,778
76,196
78,349
67,058
58,872
58,100
61,766
62,139
61,937
70,086
66,905
61,165
62,404
00,699
61,743
59,037
60,970
47,253
51,464
53,341
58,254
62,375
59,241
65,994
66,097
67,976
67,371
68,618
68,741

C.
Per cent
B-i-A.

67.1
65.8
69.6
70.9
70.1
09.1
56.6
56.5
57.9
57.9
60.8
55.8
52.6
49.3
53.3
59.2
54.0
61.4
61.2
59.5
61.9
63.4
5S.6
58.7
55.1
56.8
54.5
51.5
49.7
53.7
59.0
59.7
58.2
58.2
56.4
54.0
54.3
56.0
50.3
44.9
46.9
42.3
50.9
48.5
48.8
48.8
44.8
45.5
44.8
46.1
47.0
42.4
42.4

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

69

Deposit Liabilities, and Reserve Percentages of the Federal Reserve Bank of Boston during
year 1920.
[000 omitted.]
Purchased bills.
Reserve Percentage.
Acceptances
purchased
in open
market.

$77,483
09,237
61,864
59,243
52,532
47,122
39,997
33,430
28,002
25,648
24,501
20,470
20,774
19,854
21,672
24,934
27,400
28,583
32,052
33,099
35,143
34,746
32,253
32 478
30,241
28,181
33,132
30,992
28,820
27,270
25,456
22,491
18,352
19,734
20,116
25 383
25,602
31 06630,780
30,038
30,045
34,494
29,931
28,788
27,294
23,247 '
22,852
22,618
21,391
20,899
19,282
19,229
19,532

Acceptances
sold to
other
Federal
Reserve
banks. 1

$58,849
30,953
27,364
23,819
1,021

+ 1,755
17,013
17,013
11,923
10,185
7,439
4,542
2,985
1,325
820
373

+5,662'
+4,918
+4,918
+4,918
+4,351
+3,445
+2,518
+1,444

+15,666
+ 12,970
+3,197
"+7,666'
+7,017
+437

Total
acceptances
held.

$18,834
38,284
34,500
35,424
51,511
48,877
22,984
16,417
16,079
15,463
17,062
15,928
17,789
18,529
20,852'
24,561
27,400
28,583
32,652
33,099
35,143
34,746
32,253
32,478
30,241
33,183
38,050
35,910
33,738
31,621
28,901
25,009
19,796
19,734
20,116
25,383
25,502
31,066
30,780
30,038
30,045
49,494
42,901
31,985
27,294
30,247
29,869
23,055
21,391
20 899
19,282
19,229
19,532

U. S.
Securities.

$34,144
22,314
20,613
22,430
22,435
22,381
24,166
22,123
22,139
22,365
22,362
22,141
22,141
31,200
29,205
22,289
22,229
22,130
22,120
22,088
22,146
22,114
22,315
22,330
22,327
22,497
22,277
22,260
24,243
26,710
27,219
22,103
27,087
22,145
22,069
22,029
53,732
22,lfiO
22,359
22,138
22,153
33,141
23,215
22,080
22,042
22,249
33,614
24,878
45,169
45,675
33,115
22,118
22,249

Total
cash
reserves.

Net
Deposits.

$157,502
156,291
164,169
171,466
149,326
142,386
147,689
175,843
188,717
181,686
170,953
198,238
168,044
173,745
192,008
186,796
201,436
199,847
185,766
185,633
191,814
195,591
201,772
194,334
199,568
222,362
186,876
200,263
207,898
222,535
223,849
221,145
223,008
211,771
216,828
190,656
185,804
221,616
210,203
221,998
223,048
228,072
211,017
203,175
229,518
204,048
204,113
219,490
198,880
204,520
210,502
214,355
219,158

$116,845
108,150
118,800
112,397
115,332
105,903
99,274
103,833
113,970
115,059
110,912
114,112
111,944
107,434
107,808
113,173
113,658
110,219
105,529
118,623
115,3fi9
116,153
113,699
108,912
100,284
111,189
108,349
104,738
102,080
110,536
111,636
108,497
110,315
112,263
112,544
108,541
109,581
85,410
111,001
111 188
110,739
119,622
110,814
113,336
116,331
110,303
100,513
108,853
106,805
105,794
85,629
99,015
104,893

Federal
Keserve
notes
in
circulation.

$243,368
233,500
228,164
230,999
234,991
242,256
249,453
254,247
259,702
260,275
260,873
265,045
261,097
270,466
267,284
266,020
267,634
206,568
269,740
269,531
271,516
273,944
278,353
277,997
279,083
280,617
284,496
287,332
284,369
282,284
284,842
289,872
292,189
294,550
296,131
303,206
307,079
305,693
298,249
309,580
308,930
308,155
301,833
296,168
293,735
289,041
288,690
290,116
290,251
289,134
293,067
295,140
291,196

Actual.

Adjusted.5

43.7
45.7
47.3
49.9
42.6
40.9
42.4
49.1
50.5
48.4
46.0
52.3
45.0
46.0
51.2
49.2
52.8
53 1
49.5
47.8
49.6
50.1
51.5
50.2
52.0
50.8
47.0
51.1
53.8
50.7
56.5
55.5
55.4
52.1
53.1
46.3
44.6
56.7
51.4
52.8
53.1
53.3
51.1
49.0
56.0
51.1
51.6
55.0
50 1
51.8
55.6
54.4
55.3

27.4
36.7
39.4
43.0
42.3
41.4
37.5
44.4
47.3
51.0
52.0
55.0
50.4
48.7
55.8
58.6
58.1
58.9
59 1
55.4
55 1
55.4
55.9
57 2
58.0
61.1
57.6
61.5
63.9
67.1
68.7
71.1
70.2
68.5
69.4
69.9
62.1
08.2
00.2
05.3
65.6
07.0
72.0
70.2
68.5
66.7
62.4
61.9
56 3
56.3
59.6
59.4
59.5

1 Plus sign indicates net amounts bought from other Federal Reserve banks.
Adjusted percentages are calculated after increasing or reducing reserves held by the amount of
accommodation extended to or received from other Federal Reserve banks.

2




70

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
EXHIBIT B

i
?6
SO

n

FEDERALRESERVE BANK OF BOSTON.
MOVEMENT OF EARNING ASSETS
DURING 1920.
i

A

_*^

Uli

so

75
SO
2S

UNITED STATES SECURITIES
in

mi
PURCHASED BILLS MELD

2i>
0

-*-—

PERCEHTA6E0F WAR PAPER TO TOTAL DISCOUNTS FORBANKS in DISTRICT.
ZSO
250
$25

DISCOUNTED BILLS. (SEE MOTE BELOW)
300

TOTAL EARNING ASSETS
JAN. FEB. MAR. APR. MAr\lUNE\lULr\AUG\sEPT\ OCT. NOV. DEC.
NOTE: A—Paper secured by Government war obligations discounted for banks in District.
B—Total paper discounted for banks in District.
*
 C—Total discounted paper held. Space between lines B and C represents paper
http://fraser.stlouisfed.org/ discounted for other Federal Reserve Banks.
Federal Reserve Bank of St. Louis

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
EXHIBIT C

FEDERALRESERVE BANK OFBOSTON
NET DEPOSIT LIABILITY,

FR. NOTE CIRCULATION,
CASHRESERVES.ANORE6ERVERATIOS.I9EO.5 0
90

90

SO
70

XI

-'

B,

6O

60

!!/—

5O

v\

4O

so

A \

40

/

30

I

20
10

10

O

RESERVE PERCENTAGES. ACTUAL 'A;ADJU5TEP-B:SEEN0TEBEL0IY.
ISO

too
50

ISO

1x1

^«

100

xxll

X X X ^

Hi
DEPOSIT LIABILITY

x x # xxM

xxxl

350

xxii

so

3S0

F.R.tiOTECIRCULATlOn

_
(

450

-too
350

250
200

xlM

XxM

300

Nxxxja

W ii

a

1 Mn
xxxl

x ^

450
400
350
300
250

aoo

m i
m
mSBm m
m m Hi

ISO
ISO
• M 100
100
SO
so
O
DEPOSIT AND FR. NOTE LIABILITES;L, AND TOTAL RESERVES,'C:
\JAN. FEB. MAR. APR. MAr ME JULY AUG. SEPT. OCT. NOV. DEC.
Jlctjlisted percentages are. calculated, after increasing or
 reducing reserves held - by the. amount ofaccomadatwrv
http://fraser.stlouisfed.org/
extended, to or received fivnvotherJvdensU.3Userre^SanKt.
Federal Reserve Bank of St. Louis

71