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OPERATION OF Federal Reserve Bank of Chicago 1918 FOURTH ANNUAL REPORT TO THE FEDERAL RESERVE BOARD ANNUAL REPORT of the Federal Reserve Agent of the Seventh Federal Reserve District to the Federal Reserve Board □□ □□ □ COVERING THE CALENDAR YEAR 1918 DIRECTORS AND OFFICERS OF THE FEDERAL RESERVE BANK OF CHICAGO DIRECTORS CLASS B John W. Blodgett, Grand Rapids, Mich. A. R. Erskine, South Bend, Ind. A. H. Vogel, Milwaukee, Wis. CLASS A James B. Forgan, Chicago. Ill. E. L. Johnson, Waterloo. Iowa George M. Reynolds, Chicago, Ill. CLASS C William A. Heath, Evanston, Ill. E. T. Meredith, Des Moines. Iowa James Simpson, Chicago, Ill. OFFICERS W. A. Heath, Chairman and Federal Reserve Agent . James Simpson, Deputy Chairman W. F. McLallen, Secretary and Assistant Federal Reserve Agent W. H. White, Assistant Federal Reserve Agent and Manager Department of Examinations F. R. Burgess, Auditor Walter A. Hopkins, Assistant Auditor H. G. Kaiser, Assistant Auditor Charles L. Powell. Counsel J. B. McDougal, Governor C. R. McKay, Deputy Governor B. G. McCloud, Assistant to Governor S. B. Cramer, Cashier F. Bateman, Assistant Cashier F. J. Carr, Assistant Cashier Kent C. Childs, Assistant Cashier J. H. Dillard, Assistant Cashier Frank R. Hanrahan, Assistant Cashier Don A. Jones, Assistant Cashier Frank A. Lindsten, Assistant Cashier O. J. Netterstrom, Assistant Cashier A. H. Vogt, Assistant Cashier Clarke Washburne, Assistant Cashier Louis G. Meyer, Acting Assistant Cashier DETROIT BRANCH DIRECTORS Robert B. Locke Emory W. Clarke Julius Haass OFFICERS R. B. Locke, Manager W. R. Cation, Cashier J. B. Dew, Assistant Cashier J. G. Baskin, Assistant Federal Reserve Agent MEMBER ADVISORY COUNCIL James B. Forgan. Chicago, Ill. OPERATION OF THE FEDERAL RESERVE BANK OF CHICAGO IN 19 18 Measured both by performance and by the financial result of operation, the Federal Reserve Bank of Chicago has just closed a remarkable year. Without the facilities made available through the bank, the burden of war financing would have been a serious handicap to industrial activity for war purposes in a district where resources are largely agricultural and the business turnover is necessarily slow. The task of obtaining subscriptions to and providing the faci lities for the payments for Liberty bonds, in addition to the heavy war taxes in a single year, and at the same time caring for abnor mal business requirements, afforded a severe test of the various functions of the Federal Reserve Bank. In its fiscal agency operations in 1918 the Federal Reserve Bank of Chicago dis tributed 11,096,577 coupon bonds, involving 208,956 registered shipments, through its bond department, while it financed the Treasury through the cash sale and distribution to banks, cor porations, and individuals of bonds and certificates of indebted ness to the extent of approximately $3,000,000,000. This expansion of facilities, so as to render the greatest possible service to the Treasury, the member banks, and to business in general, necessarily involved a considerable increase in the cost of operation, but despite the increased expenditure, the Federal Reserve Bank of Chicago showed a surplus of $3,100,000 for the year 1918, after all charges, payment of dividends, and reserva tion for the statutory franchise tax. In extending the facilities of the Federal Reserve Bank of Chicago to member banks it has been necessary to expand its note issue. Federal Reserve notes in circulation at the close of' the year aggregated $428,820,000, as compared with $181,160,000 at the beginning of the year, an increase of $247,660,000. It is safe to say that Government financial operations were chiefly responsible for this abnormal expansion. On the other hand, comparative statements of the Federal Reserve Bank of Chicago at the beginning and close of 1918 show an increase of approxi mately $192,738,000 in its gold stock. On December 31, 1918, the gold available as reserve against Federal Reserve notes in circulation, after setting aside 35 per cent against net deposit liability, was 81.5 percent. On the same day the total reserve against combined net deposit and note liability was 66.1 per cent. The campaign for the transfer of gold from individual banks to the Federal Reserve Bank accounts for $53,000,000 of the 1918 ♦ 2 increase in the stock of gold. There also has been collected during the year and turned into the Treasury approximately $12,400,000 in silver and silver certificates. In its fiscal agency operations the Federal Reserve Bank of Chicago not only has had the cooperation of banks and bond distributing organizations, but also the services of individuals identified with these organi zations, contributed as a patriotic duty. Such cooperation has contributed greatly to the success of the year’s undertakings. Appreciation of the services and facilities afforded by member ship in the Federal Reserve system is indicated by the interest taken by State banks in the Seventh Federal Reserve District. Considerably more than one-half of the total resources of eligible banks operating under State charters are now represented by memberships in the Federal Reserve Bank of Chicago. The character of the services performed in the year 1918 is clearly depicted in the following resume of the operations of the Federal Reserve Bank of Chicago and in the statistics and charts accompanying this report. FINANCIAL RESULTS OF OPERATION Earnings for the year 1918 aggregated $8,481,747, compared with $2,020,714 in 1917 and $665,955 in 1916. From the gross earnings of 1918, however, there should be deducted $155,672 because of the discontinuance of the service charges in the transit department, the disbursements without income in the second half of the year more than absorbing the income in excess of disbursements covering the first half. This made the total earnings of the bank $8,326,075, which compares with $2,022,278 for 1917, the latter figure including a credit from*the transit department operations. The total expenses for the year 1918 aggregated $1,495,002, compared with $792,526 in 1917 and $262,730 in 1916. The net income for the year, however, was $6,805,081, compared with $1,229,751 in 1917 and $403,205 in 1916. The earnings for the year 1918 were equivalent to 60.84 per cent on the paid-in capital as of December 31, 1918. The balance sheet as of December 31, 1918, shows $247,091,000 of total earning assets, compared with $125,490,000 at the close of the previous year and $26,475,000 at the end of 1916. The total cash reserve at the close of 1918 was $423,574,000, compared with $230,833,000 at the close of 1917 and $54,379,000 at the close of 1916. The total assets shown were $779,187,000 at the close of business December 31, 1918, compared with $401,905,000 at the end of the previous year and $118,790,000 at the end of 1916. The capital account showed $1 1,185,050 in capital paid in and $3,316,022 in surplus, compared with $9,091,700 paid-in capital and $215,799 surplus at the close of 1917, and $6,683,550 paid-in capital at the close of 1916. The total Government deposits on December 31, 1918, were $6,566,000, compared with $3,052,000 at the close of 1917 and 3 $2,045,000 at the close of 1916. The total “due to member banks—reserve” at the close of 1918 aggregated $230,604,000, against $169,174,000 at the end of 1917 and $95,390,000 in 1916. The balance sheet also showed $450,938,000 of Federal Reserve notes at the end of 1918, compared with $190,788,000 at the close of the previous year. The detailed profit-and-loss account and balance sheet will be found in the appendix accompanying this report (Schedules 1 and 3). TREND OF DEPOSITS The trend of deposits for the year 1918 has been consistently upward. Reference to net deposit figures compiled as at the close of business each Friday during the year shows that the lowest point touched was about $116,000,000, while the high point for the year was $226,000,000. For the first six months deposits averaged about $152,000,000, while for the last six months the average was about $196,000,000. This considerable increase is attributed to the increase in the deposit accounts of member banks, necessitating larger reserves, as well as to the growth in our membership through the addition of 217 State banks during the year. GENERAL BUSINESS CONDITIONS General business was active at the close of the year, with banking conditions in the Seventh Federal Reserve District sound. Necessarily the volume of business is being somewhat curtailed as war contracts are completed or canceled, but in the readjustment to peace conditions the volume of accumulated business, which during the war it was impossible to care for, has taken up a considerable amount of the slack caused by the let down in war production. Instances of this are found in the automobile industry, in the manufacture of furniture and other articles which war economy and conservation of manufacturing facilities affected. The agricultural situation is promising, the seed going into the ground last fall under favorable conditions, and the wheat acreage in this district is large. The labor situation in consequence of this readjustment is slowly improving. There is still a shortage of skilled workmen in some lines, but a noticeable improvement in the supply of common labor available, whereas before the signing of the armistice this class of labor was exceedingly scarce. Women are being released from factories and shops where they were engaged in war production, and are returning to their former lines of activity, while a general effort is being made among employers to care for those released from military service by the Govern ment. A striking feature in the general business situation at the close of the year was an apparent desire of all elements to con tribute as far as possible to an orderly readjustment to a peace basis. The readjustment of wages to a peace basis is apparently being deferred until commodity prices and other items entering into the cost of living have shown a substantial decline. 4 The money market, which during the year ruled remarkably steady for a war period, closed the year with rates ranging from 5^ to 6J^ per cent, but with 6 per cent quotable as the prevailing rate in most instances. DISCOUNT OPERATIONS Throughout the year 1918 the greater portion of the total earning assets of this bank was represented by discounts for member banks involving United States Government war obliga tions as security in one form or another. On January 2, 1918, the percentage of the “bills discounted” by this bank representing war financing was 25 per cent. Until September 13 there was no segregation on our ledgers of the item “bills discounted” into paper given for the purchase of Government obligations and paper given for commercial or industrial purposes. Figures available after September 13 show that of total “bills discounted” as high as 77 per cent was war paper, while the lowest percentage shown in the subsequent weeks of 1918 was 62 per cent. For the first half of the year the financial operations of the United States Government in the Seventh Federal Reserve Dis trict were not reflected in a particularly striking manner in borrowing from the Federal Reserve Bank of Chicago, “bills discounted” ranging between $62,000,000 and $125,000,000, with the average somewhat below $100,000,000. That “total earning assets” ranged between $100,000,000 and $150,000,000 in that period, averaging in the neighborhood of $125,000,000, was due to the accumulation of acceptances aggregating in amount $50,000,000 in the early part of April. The amount of accept ances later was allowed to run down to a nominal figure, but acquisition was resumed again later in the year, reaching almost $100,000,000 in the middle of December. The middle of the year found practically all banks in the district short of surplus funds, due to the absorption by the successive issues of Liberty bonds, and anticipatory issues of certificates of indebtedness, and the exceedingly large require ments of essential business. This condition made recourse to the Federal Reserve Bank of Chicago imperative, and such recourse was immediately reflected in a growth of the item “bills dis counted” from about $125,000,000 to $250,000,000 at the end of July. This was maintained with but negligible fluctuations until the peak $279,308,000 was reached in the early part of November. There followed between the middle and the end of November a sharp decline, amounting to about $70,000,000, $183,400,000 being touched before a brief recovery set in. In the first three weeks in December there was a decline to around $154,000,000, with a subsequent recovery to nearly $160,000,000. The highest point reached by the item “total earning assets” was recorded at the beginning of November, when the amount touched $326,944,000. Investment operations were confined to one purchase, amount ing to $1,000,000 of municipal warrants, on January 23 and sold 5 on January 28, and to United States securities, which ran along between $5,000,000 and $15,000,000, until the last Friday in October, when the total increased to $47,000,000, receding sharply to $15,000,000 in the first week in November. This total again increased, and at the end of the year amounted to slightly more than $20,100,000. During the year there were 22,864 applications for rediscount approved for 850 banks, as follows: Illinois................................................ Indiana.................. ....................................... Iowa........................................................ Michigan........................................................ Wisconsin.............................................. .. Total—.......................... ................ Number of banks Amount 168 125 333 128 96 $1,741,500,084 184 40$ 1 40 385 191 839 612 080 430 342^672,516 850 3,265,850,010 In addition to this, $222,838,671 in bankers’ acceptances were purchased in the open market and from other Federal Reserve Banks, represented by bills drawn in connection with imports or exports or based upon domestic shipments or storage of goods and accepted by institutions of known responsibility. The amount of United States Government bonds, certificates of indebtedness, and notes purchased by the Federal Reserve Bank of Chicago during the year aggregated $30,276,950, exclusive of bonds and certificates taken under repurchase agreements. The amount of these sold during the year aggregated $14,342,550. The investment of the Federal Reserve Bank of Chicago in war rants and bonds of four municipalities with maturities ranging fr6m 60 to 143 days, purchased in the open market and sold, was $1,000,000. Naturally, in a war period, with such unprecedented imperative financing as took place in the year just closed, the rediscounting operations of the Federal Reserve banks were very large in volume, and the Federal Reserve Bank of Chicago, operating in a territory the wealth of which is very considerably invested in agricultural and allied pursuits, shared liberally in this class of rediscounting. In the general rediscounting operations, how ever, paper was carefully scrutinized in order to determine whether it represented essential or nonessential enterprises, and as far as practicable the policy was adhered to of caring for the extensions of credit regarded as essential to the successful prosecution of the war. TRADE ACCEPTANCES In the very nature of things the development of the use of trade acceptances in this district has been slow, but some progress has been made during the last year, as is evidenced by a moderate increase in the volume in the hands of banks and the number of concerns which have adopted trade acceptances in their business. 6 There appears to be an active interest in most lines of business in the subject of trade acceptances, but from the information received from the users of trade acceptances and also those con sidering their adoption, it would seem that the banks of this district are not actively promoting the use of the trade accept ance by their customers. Probably this is explained by the pressure under which the banks have been working. While they realize the necessity of rendering the reserve money more mobile through the creation of a broader discount market for commercial paper, the banks may not yet have fully appreciated the value of the machinery provided by the Federal Reserve system by which high-grade business paper can be rediscounted throughout the country, nor have business concerns fully realized how the use of trade acceptances and bankers’ acceptances commands preferential rates. BANKERS’ ACCEPTANCES It also has been the policy of the Federal Reserve Bank of Chicago to encourage the development of an open market for bankers’ acceptances in this district, but this, too, is very slow in developing. Thus far the chief support of business in bankers’ acceptances has come from the Federal Reserve Banks. It is appreciated by the officers of the Federal Reserve Bank of Chicago that acceptances, however, must depend upon a broader market than that afforded by the Federal Reserve Banks if this class of paper is to come into general use as a form of credit and that business is to be expanded. At present there are compara tively few banks in the Seventh Federal Reserve District which regularly buy bankers’ acceptances, and these are among the larger institutions. The number doubtless would be much larger were it not for the great volume of United States Government certificates of indebtedness absorbing available funds seeking employment. Public and private corporations at times having funds for which it is desirable to find temporary employment are showing increasing interest in acceptances. Some already have adopted the policy of investing these funds in a well-assorted list of eligible bankers’ acceptances because of their liquidity and the more satisfactory interest return. The storage and movement of grain, meats, provisions, woolens, and tobacco, which heretofore have been financed largely through acceptances known as “domestic bills,’’ also is stimulating inter est among banks in the development of a broad mid-West accept ance market. The limited amount of surplus funds available for investment in acceptances probably accounts for the slight encouragement which the few brokers offering acceptances here have received from the Middle West banks. Some of the broker and banking houses say they have been unable to make any progress even in the purchase and sale of the acceptances of local concerns from and to local banks. 7 During the year 1918 seven Chicago banks and one Wisconsin bank applied for powers to accept up to 100 per cent of their combined capital stock and surplus. The approval of these banks last year brought the list of authorized accepting banks up to 11, all of which, with one exception mentioned, were Chicago banks. The list of banks authorized to accept up to 100 per cent of their capital and surplus will be found in the appendix (Sched ule 6). PURCHASE OF ACCEPTANCES The policy of the Federal Reserve Bank of Chicago in the purchase of acceptances has been to absorb such acceptances as are offered direct by member banks of this district, and also to sell acceptances to banks in this district whenever the member banks inquire for them. It seems necessary, however, in order to develop any considerable volume of business, that an active campaign be made to interest banks and banking houses of this district more generally in the handling of acceptances. RESERVE POSITION That in spite of the heaviest demands ever made upon the resources of the Federal Reserve Bank of Chicago it was possible to maintain cash reserves at a figure averaging above 60 per cent for the whole year has been due chiefly to the patriotic response to the appeal for mobilization of gold and gold certificates through out the district, into the regional bank, as well as to the growth of its deposits through the gratifying increase in the membership of State banks. An intensive campaign in which member and nonmember banks were canvassed and asked to turn in their gold and gold certificates, accepting Federal Reserve notes in exchange therefor, bore fruit, and too much cannot be said for the banks whose spirit of cooperation was so helpful. During the unprecedented advance in the loan item in the month of July, the consequent upward trend of the deposit and note liability resulted in a decline of cash reserves from about 65 per cent to approximately 45 per cent, the low point for the year. Though deposit and note liability continued to expand to almost $650,000,000, at the end of the year the ratio of cash reserves had advanced by a consistent upward trend from never below 49 per cent to about 67 per cent. At the close of the year it was slightly in excess of 66 per cent. GROWTH OF MEMBERSHIP During the year the Federal Reserve Board approved applica tions for stock in the Federal Reserve Bank of Chicago from 13 national banks and applications for surrender of stock from 9 national banks. In the appendix (Schedules 7 and 8) will be found the names of the institutions whose stock was surrendered, as well as the disposition made of the applications; also a list of the new national bank members. 8 The following table contains figures showing the growth in membership of State banks in the Federal Reserve Bank of Chicago : State bank membership statistics, Federal Reserve Bank of Chicago, by years of admission. 1914 1 1915 1916 1917 1918 Total 1 19 2 8 31 3 55 17 68 80 17 57 19 77 113 22 1 63 217 288 2 Illinois......................... ..................... Indiana.................................. Iowa........... .... ................................ Michigan.......................................... Wisconsin......................................... 1 2 1 Total....... ............................. 2 5 The increase in State bank membership from 63 in 1917 to 288 in 1918 is very gratifying and has added considerably to the strength of the Chicago Reserve Bank. These insitutions on December 31, 1918, held in excess of one-third of the total capital stock in their regional bank. This may be ascribed to the exigencies of the financial situation, which made it necessary for State institutions to enlist help in carrying their share of the Government’s war obligations, as well as to an intensive campaign from this office through which their membership was solicited. State bank members admitted in 1918 appear in Schedule 9. FIDUCIARY POWERS During the year 25 applications from national banks for power, under section 11 (k) of the Federal Reserve Act were approved, bringing the total number of banks having such powers up to 125. Schedule 10 in the appendix lists the banks granted these powers in 1918. DEPARTMENT OF BANK EXAMINATIONS Among the provisions for the Federal Reserve Act are the following: The Federal Reserve Board shall be authorized and empowered to examine at its discretion the accounts, books, and affairs of each Fed eral Reserve Bank and of each member bank, and to require such state ments and reports as it may deem necessary. * * * Every Federal Reserve Bank may, with the approval of the Federal Reserve agent or the Federal Reserve Board, provide for special examination of member banks within its district. * * * Special examinations shall be so conducted as to inform the Federal Reserve Bank of the condition of its member banks and of the lines of credit which are being extended by them * * *. As a condition of membership, such banks (State) shall likewise be subject to examinations made at the direction of the Federal Reserve Board or of the Federal Reserve Bank by examiners selected or ap proved by the Federal Reserve Board. Whenever the directors of Federal Reserve Banks shall approve the examinations made by the State authorities such examinations and the reports thereof may be accepted in lieu of examinations made by examiners selected or approved by the Federal Reserve Board * * *. Early in the present year the Federal Reserve Bank of Chicago organized a department of bank examinations in order to be 9 prepared to meet the requirements of the act in this particular. During the year some examinations of national banks have been made by this department. A number of State banks applying for membership have been specially examined, and in a large number of instances representatives of this department have visited State banks applying for membership in order to satisfy themselves as to conditions which were not made clear by reports of State examinations submitted. It has been the endeavor of this department to cultivate friendly relations with the State banking departments in all of the States included in this district, and it is pleasing to note that most cordial relations exist between this department and the various State banking departments. The disposition to be mutually helpful is manifest on both sides. Examinations of national banks are largely standardized; on the contrary, each State has a method of its own. It is obvious, therefore, that the reports of State examinations, no matter how efficiently conducted, do not in all cases contain all of the essential or detailed information which is deemed necessary by the Federal Reserve Bank or the Federal Reserve Board. The latter body has recently suggested an outline of more complete cooperation between Federal Reserve Banks and the various State banking departments, and the Federal Reserve Bank of Chicago has enlarged its examining force in order that the pro posed plan may be more effectively carried out. Under this plan examinations, as a rule, will be conducted as heretofore by the State banking departments; but representatives from the Federal Reserve Bank, so far as practicable, will be present during the progress of such examinations, and it is believed that through such practice closer coordination may be had and more efficient results obtained for the benefit of all those interested. It is gratifying to state that this plan appears to have met with the approval of the banking departments of the various States. STATE BANK RESERVE The reserve percentages against deposit liability required by the banking departments of the five States in the Seventh Federal Reserve District differs from those required under the Federal Reserve Act. In the State of Michigan, however, an amend ment to the banking law provides that Michigan State bank members of the Federal Reserve system may satisfy reserve requirements of their State departments by complying with percentages obligatory under the Federal Reserve Act. More over, in the other States there is a liberal attitude toward member banks in the matter of reserves, providing they maintain a per centage which satisfies the requirements of the Federal Reserve y\.ct GOVERNMENT WAR FINANCING In the very nature of things Government war financing over shadowed all other classes of business in the Federal Reserve Bank of Chicago. The Seventh Federal Reserve District is 10 composed almost entirely of agricultural territory, and this made the problem of financing its quota of subscription payments for the various issues difficult. It is true the district contains several important manufacturing and commercial centers and that dotted all through the territory are manufacturing cities, but the bulk of the wealth is invested in either agriculture or industires closely allied to agriculture, and hence the income is dependent largely upon that business and the turnover is slow. Despite this handicap, however, the quota of the third and fourth Liberty loans, aggregating between 14 and 15 per cent of the total offerings, was oversubscribed in each instance, the Treasury being financed in advance of actual payment for the bonds through the absorption of certificates of indebtedness offered to the banks from time to time. The statistics relating to the fiscal agency operations appearing in the appendix of this report indicate the character of the response to the Treasury offering (Schedules 11 to 16). In obtaining a wide distribution of the certificates of indebtedl ness the allotment system proved beneficial, because it gave albanks an amount which should equal their subscriptions, and afforded an incentive to bring their subscriptions up to the amount of their quota by stimulating a spirit of competition between banks. The effect of the general and wide distribution under the Government war financing program has been to acquaint many banks, especially the smaller institutions, with the advantages of holding as secondary reserve short-time paper— a development which ordinarily would have been difficult to bring about through voluntary offerings. The educational value of this experience, therefore, is great, and is expected to prove far-reaching in its effect. The record of subscriptions of all banks in the Seventh Federal Reserve District to the first four series of Treasury certificates indicates a steadily increasing interest in these short-term war obligations. The figures compare as follows: Series I Allotment............................... Number of subscriptions..... Series II Series III Series IV $77,693,000 $138,597,000 $325,355,000 $663,204,000 1,348 3,121 13,792 29,544 At the closing of the subscription lists two-thirds of all the banks in the district were recorded as having subscribed for an amount equal at least to the minimum quota of the anticipation certificates of the fourth Liberty loan assigned them. Allotted subscriptions to certificates of indebtedness in anticipation of loans and in payment of Federal taxes in the Seventh Federal Reserve District aggregated $1,427,609,500 in 1918, of which $988,559,000 were certificates in anticipation of the third and fourth loans, and $132,794,500 were in anticipation of the 1918 taxes. The total also includes $125,831,000 sold in anticipation of taxes due in 1918 and 1919, and $180,425,000 in anticipation of the fifth Liberty loan. 11 DEPOSITS OF TREASURY FUNDS WITH BANKS During 1918 the number of depositary banks increased from 288 to 1,060. The maximum payment by depositary credit increased from $96,000,000 on the occasion of the first payment on the second Liberty loan to $174,000,000 on the October 24 pay ment of the fourth Liberty loan. The latter amount represents 31 per cent of the total amount paid on that date, the remainder being 27 per cent in cash and 42 per cent paid by certificates of indebtedness. On the December 5 issue of certificates the amount paid by depositary credit was $65,598,000, or 67J^ per cent of the total subscriptions. From January, 1 to December 1, 1918, a grand total of $1,464,093,765 had been deposited to the credit of the Government in depositary banks. The collateral held to secure deposits increased from $139,000,000 on January 1 to $257,000,000 on October 30 last. In conducting the work of this division it has been the endeavor to simplify the forms and operations necessary, and as a result the depositary banks are now handling transactions with the use of fewer forms and in a more direct manner than before and are showing an increasingly cooperative spirit. It has been possible to adjust the work so that within about two hours after receiving a call from Washington for funds, notices of withdrawal are in the mails. Payments made by banks against calls on war loan deposit accounts are now prompt in practically every instance, and whereas in the first half of 1918 on every payment date there were from 30 to 40 delinquents, the delinquent list now rarely exceeds half a dozen, although the number of depositaries has increased 100 per cent. This has been accomplished through the systematic use of the mails and wires in regard to overdue payments to show the necessity of promptly making funds avail able for the use of the Treasury on the date set in notices. There has been the fullest cooperation from State custodians and securities committees and no effort has been spared by custodians to render services promptly or to anticipate any difficulties which might arise through error on the part of deposi tary banks. FLOTATION OF LIBERTY LOANS The accompanying statistics show the character of the under taking in obtaining subscriptions for and in allotting and deliver ing to subscribers Liberty bonds in the volume represented by the quota given to the Seventh Federal Reserve District and in the wide distribution of these subscribers. Every effort was made to simplify and standardize all forms used in connection with the Liberty loan subscriptions and payments, with the view of reducing the number of errors made by banks in sub mitting subscriptions or loan payments. This found its reflec tion in the decrease in the volume of correspondence compared with the experience with relation to the first and second Liberty loans. 12 In the distribution of the third and fourth Liberty loans in the Seventh Federal Reserve District, which comprises 58 counties in the northern part of Illinois, 68 counties embracing the north ern two-thirds of Indiana, 68 counties embracing all of Michigan excepting the northern peninsula, 45 counties embracing the southern two-thirds of Wisconsin, and 99 counties comprising the entire State of Iowa—a total of 338 counties for the entire district—a comprehensive sales organization was found necessary. This Liberty loan organization, formed under the direction of the Federal Reserve Bank of Chicago, acting as fiscal agent of the Government, consisted of a general committee, composed of representative ’citizens, two of whom were women, appointed directly by the governor of the Federal Reserve Bank, repre sented six subdivisions, embracing - (1) Chicago and Cook County, (2) Illinois outside Cook County, (3) Indiana, (4) Iowa, (5) Michigan, (6) Wisconsin. This general committee in turn operated through an executive committee, composed of executives of representative banks and allied interests. This executive committee directed the campaign through the Liberty loan campaign committee, composed of a director, and in the instance of the fourth loan, an assistant director, and a cabinet made up of the sales director of each of the six subdivisions, director of publicity, director of the speakers’ bureau, and a secretarytreasurer. In the fourth loan the position of executive secretary was abolished and his duties were combined with that of the treasurer, an arrangement which proved very satisfactory and efficient. So satisfactory has this general organization proved that it is contemplated utilizing it practically in this form in connection with the fifth Liberty loan. (See Schedule 17, appendix.) In the campaign for subscriptions the Seventh Federal Reserve District Liberty loan committee used largely what is called the “individual quota" system outside of Cook County and Chicago, and had the war continued this system would in time probably have been perfected so as to apply to the Chicago territory. No effort, however, was made to add to the quota allotted, so that the results in subscriptions to the two loans were exceedingly satisfactory. It is asserted on the basis of statistical information that more people per thousand have bought Liberty bonds in this district than in any other in the country. The Central West has learned to buy bonds. In the first loan the Seventh Federal Reserve District showed 600,000 total subscribers, on the basis of 4 per per cent of population computed on the 1910 census. The per cent of quota subscribed on the “basis of official report of appli cation” was 118. The amount of subscriptions equaled $26.79 per capita, with an average subscription of $586, whereas in the second loan the total number of subscribers on the “basis of official report of application” was 1,809,497, or 14 per cent of the population, the per cent of quota subscribed being 139, the per capita $44.63, and the average subscription $324, while in the 13 • third loan the total number of subscribers on the “basis of official report of application" was 3,535,792, or 27 per cent of popula tion, with a total subscription equivalent to $46.44 per capita, and 143 per cent of quota subscribed, and an average subscrip tion of $172. The total subscriptions in the Seventh Federal Reserve District to the third loan were $608,878,000.. Analysis of the official assignments, subscriptions,' and sub scribers to the fourth Liberty loan showed total applications in the Seventh Federal Reserve District of 4,241,703, with an average application of $229. The per cent of quota subscribed was 111; the per capita application amounted to $73.88. Sub scriptions in the Seventh Federal Reserve District to the fourth Liberty loan aggregated $969,646,600. Fully 85 per cent of all railroad employees in the Seventh Federal Reserve District were enlisted as purchasers of bonds of the third Liberty loan issue. The average subscription was $65.48, and the total amount, $12,826,600, was distributed to 195,876 employees. In the fourth loan the percentage of rail road employees who subscribed for Liberty bonds was in excess of 97, with an average subscription of $100. The distribution, therefore, was increased between 12 and 15 per cent and the average purchase was increased $35. The Liberty loan sales organization embraced 48 organizers and 365 paid employees during the peak of the campaign. To this should be added approximately 300,000 volunteer workers. In the central clearing house in Chicago 400 were employed at the peak of the campaign, while 80 were distributed among the 35 ward stations. The cost of handling this business in the third loan was $30,000, while in the fourth loan it aggregated about $40,000. Three hundred and twenty-five were employed in the distribution and publicity department. A maximum of 80,000 pieces was distributed. The maximum volume of appli cations cleared at Chicago in a single day was 82,000 pieces (subscriptions), involving $18,000,000. The various activities of the fiscal agent’s department has resulted in a great increase in the number of employees other than in the Liberty loan sales organization. On January 1, 1918, 129 employees were engaged in this department, whereas at the close of the year 1918 the number reached 300. WAR SAVING CERTIFICATES The work of the Federal Reserve Bank of Chicago in connec tion with the sale of war-savings certificates and thrift stamps has been comparatively light. This bank was not called upon to direct that feature of the war financing until the middle of October, so that it was impossible to increase the results of the organization already in existence during 1918. The bank, there fore, has furnished only about one-eighth of the total sales of .stamps in this district, the remainder having been put out by the 14 Post Office Department. Considerable attention, however, has been given to the matter of broadening the scope of the organi zation for sales of the war-savings certificates and thrift stamps for the purpose of increasing the sale during the coming year. WAR FINANCE CORPORATION The Federal Reserve Bank of Chicago has not participated in any of the functions of the War Finance Corporation. This bank was not called upon to act as representative of the corpora tion in handling applications for loans under the terms of the act, and such applications or inquiries as were directed here were redirected to Washington. DISTRICT COMMITTEE ON CAPITAL ISSUES The activities of the district committee on capital issues for the Seventh Federal Reserve District began immediately after the appointment of the main committee. Its membership con sisted of 17 (afterwards increased to 19), the majority being from Illinois and residents of Chicago. Each of the other States included in the seventh district, however (Indiana, Iowa, Michi gan, and Wisconsin), was most efficiently represented in the com mittee’s membership. The first meeting of the committee was held on February 2, 1918. An executive committee of five (afterwards increased to seven) was selected by the main committee at Washington, and acting under the plan of procedure recommended for all districts, assumed charge of activities for the district, the remaining members forming an advisory body to be called into consultation as necessity required. Regular sessions of the executive com mittee were had, usually on Tuesdays and Thursdays, and during the life of the body 75 meetings were held in all. It became apparent at the outset that the volume and importance of matters to be presented for consideration called for systematic procedure. Therefore, a competent and experienced secretary was at once appointed, with power to employ necessary assist ants. As a result, each application as received was carefully analyzed, additional information obtained, if needful and pos sible, and tabulated in very condensed and concrete form for presentation. In this way a very large number of applications was disposed of at each session without delay in any cases where all essential facts were available. It was the policy of the committee to grant special hearings wherever asked for, and in some cases the committee requested applicants to appear before it. The total number of such hear ings was, however, not large. Few appeals from the committee’s findings were made, and few of the recommendations of the district committee were overruled by the main committee at Washington. In all, some 600 applications were considered. An exhibit of these, classified and giving figures, appears in the appendix (Schedules 18 and 19). This, however, by no means 15 represents all the results accomplished, for hundreds of projects, totaling probably very large figures, were deferred merely on oral advice of committee members. It was impossible to keep a proper record of them. The response of the public generally to the appeal of the com mittee for cooperation was widespread and very gratifying. The committee was aware, however, that at times its existence was ignored (but not in all cases deliberately) and that in parts of the district the credulous were still being importuned to exchange their cash and Liberty bonds for unauthorized or “wildcat” issues. It was, however, powerless to correct this situation. FEDERAL RESERVE NOTE ISSUE Eleswhere in the text of this report there has been furnished a discussion of the issue of Federal Reserve currency by this bank during the year. In the appendix will be found a table and chart covering the trend of the liability on account of Federal Reserve note issue; also a table indicating interdistrict movement of Federal Reserve currency and a table recording the amount of notes issued by the Federal Reserve Bank of Chicago and outstanding December 31, 1918. (See Schedules 20 to 22, Exhibit B, and chart.) FEDERAL RESERVE BANK NOTE ISSUE At the close of business December 31, 1918, there were out standing $18,525,800 in Federal Reserve bank notes. This cur rency is at present available in $1, $2, $5, $10, and $20 denomi nations. During the campaign for the withdrawal from circu lation of silver certificates it has been the policy of this bank to pay out Federal Reserve bank notes in an amount approxi mating the amount of incoming silver certificates. The appendix contains a table covering the amount of these notes put in circu lation and redeemed during the year. At the close of the year $19,609,800 in United States securities were on deposit with the United States Treasurer as security for outstanding Federal Reserve bank notes. POSITION OF COMMERCIAL BANKS Necessarily the commercial banks of the district not only felt the effects of the demands of the Government upon their resources in the matter of purchasing Government securites, but also they have felt the effect of the high prices of practically all raw ma terials. Naturally these high prices made it necessary for bor rowers to use much more money for the same volume of business than was needed before the war. These two elements have caused the banks generally throughout the district to borrow liberally from the Federal Reserve Bank of Chicago. The effect of war financing on commercial paper from the standpoint of the banks naturally would be that of subjecting makers to a more careful scrutiny of the credit risk. Credits 16 extended before the armistice was signed were based primarily upon their essential character to a very considerable extent, whereas after the armistice was signed and war needs relaxed, credits were viewed from the standpoint of ability to get back to a safe and profitable peace basis. The consequence of this shift in viewpoint necessarily has contributed to a most careful examination of credits, which in the war period were regarded as the strongest. Notwithstanding the heavy war demands, the banks in the Seventh Federal Reserve District are believed to be in a relatively strong position and hence able to care for all reasonable demands of general business. In the performance of the functions for which it is created, the Federal Reserve Bank of Chicago will continue to meet the situations as they arise, extending to deserving member banks its facilities of discounting with a view to aiding them in caring for credit requirements of general business, and at the same time conserving credits to the extent necessary for the furtherance of Government financing yet to be done. DETROIT BRANCH The branch bank at Detroit, Mich., authorized by the board of directors at its regular meeting on November 27, 1917, was formally opened for business on March 18, 1918. The branch immediately began to justify its creation in handling with expedition certain dealings formerly had by Detroit member banks direct with the parent bank. There is effected a saving of a day’s time in receiving credit for paper offered for discount, as well as the immediate accessibility of an adequate supply of Federal Reserve currency. Up to the present time the Detroit branch handles checks on banks located in the city of Detroit alone. By the deposit of currency or the discount of paper Detroit member banks are immediately supplied with Chicago exchange in the form of a credit on the books of the Federal Reserve Bank of Chicago. This business has been handled to the satisfaction of both the Detroit member bankers and the board of directors of the Federal Reserve Bank of Chicago. While the results of the operation of the branch are combined in the profit and loss statement for the head office, an idea of the scope of its opera tions may be gained from the balance sheet appearing in the appendix (Schedule 2). INTERNAL ORGANIZATION M. B. Hutchison, of Ottumwa, Iowa, a class B director, group 2, of the Federal Reserve Bank of Chicago, died August 6. This vacancy was filled by the election of A. R. Erskine, presi dent of the Studebaker Corporation, South Bend, Ind., who will fill the unexpired term ending December 31, 1920. George M. Reynolds, Chicago, class A, group 1, and A. H. Vogel; of Mil waukee, class B, group 3, were reelected for the full three-year 17 term. William A, Heath was reappointed by the Federal Reserve Board as a class C director for the full three-year term, and designated as Federal Reserve agent and chairman of the board. The board held 12 regular meetings during the year. The executive committee is composed of James B. McDougal, governor; J. B. Forgan, George M. Reynolds, James Simpson, and the Federal Reserve agent. This committee had two regular meetings each week during the last year. The member ship committee is composed of the Federal Reserve agent, James B. McDougal, governor, and A. H. Vogel, a director. The plan of holding daily informal meetings of the officers of the bank has been followed throughout the year, except where it was interfered with in some instances by unusual activities in connection with the Liberty loan campaigns and other emer gencies. B. G. McCloud was promoted from cashier, the position which he has filled since the organization of the bank, to a newly created position, “assistant to the governor,” and S. B. Cramer, an assistant cashier, was elected cashier. This change took place in the closing weeks of 1918. During the year it became advis able to increase the official staff of the bank, and seven additional assistant cashiers were appointed as follows: Kent C. Childs, F. Bateman, J. H. Dillard, A. H. Vogt, O. J. Netterstrom, F. R. Hanrahan, F. A. Lindsten. Mark A. Lies, assistant Federal Reserve agent, having entered the service of the United States Army early in November, 1918, W. H. White, manager of the department of bank examinations, was appointed as assistant Federal Reserve agent to fill the vacancy. The officers and directors of the Detroit branch, organized early in 1918, consisted of John Ballantyne, Emory W. Clark, Julius H. Haass, Charles H. Hodges, and Robert B. Locke, all of Detroit. The officers of that branch are: Robert B. Locke, manager and chairman of the board; J. G. Baskin, assistant Federal Reserve agent; William M. Cation, cashier; and J. B. Dew, assistant cashier. FEDERAL RESERVE CLEARING SYSTEM Operations of the clearing system show a remarkable increase in volume. The daily average in the number of items drawn on banks in Chicago increased approximately 70 per cent, while the daily average of items on banks outside of the Federal Reserve cities increased approximately 137 per cent. The daily average of items drawn on banks on other districts increased approxi mately 111 per cent. The number of member banks in the district at the close of the year was 1,332, compared with 1,103 at the close of the preceding year and 992 at the close of 1916, whereas the number of nonmember banks on the par list at the end of 1918 was 2,392, compared with 2,240 at the end of 1917 and 1,265 at the close of 1916. 18 In connection with the clearing operations attention is called to the fact that the direct-sending system has been granted to a number of banks when time can be saved. For instance, under such conditions, if the volume of items warrants it, arrangements may be made with the Federal Reserve Bank of Chicago for direct routing between member banks of this district and other Federal Reserve Banks and their branches. In this way there is a considerable saving in time, but this also results in a decrease in the number of items handled through the clearing system by the Federal Reserve Bank of Chicago. The Federal Reserve Bank of Chicago now settles the clearing balanced not only for Chicago, in accordance with arrangements made more than a year ago, but also for Detroit and Milwaukee. The Detroit balances are settled through the Detroit branch, while the Milwaukee balances are settled through the Federal Reserve Bank of Chicago by telegraphic transfer. The increase in the Government checks approximates 236 per cent. (See Schedules 24 and 25.) TRANSFER OPERATIONS AND LEASED-WIRE SYSTEM It having become evident that the encouragement of tele graphic transfers of credit would be advisable, in order to conserve banking reserves and thus strengthen the banking position, this was undertaken early in 1918 by the Federal Reserve Board through a series of steps increasing the cost of mail transfers and reducing the cost to member banks of telegraphic transfers. At the beginning of 1918, the Federal Reserve Bank of Chicago was purchasing from member banks transfer drafts or exchanges on other Federal Reserve cities and branch cities at the rate of 5 cents per thousand per day discount, which was equivalent to about 2 per cent per annum. Sales were made at the same rate. During January, 1918, the bank purchased mail exchange amount ing to $254,181,000, and sold mail exchange amounting to $53,635,000. During that period no telegraphic transfers were purchased, but the bank sold $5,000,000 of telegraphic transfers at par. On April 15 the rates for purchases of mail exchange were increased from 5 cents per thousand per day discount to 10 cents per thousand per day discount, or about 3)/£ per cent per annum. The selling rate was increased from 5 cents per thousand per day discount to per cent per thousand per day discount. The bank still continued to receive a large volume of mail exchange for immediate credit, which in April amounted to $253,656,000. In order that the reserve position of the bank might be strength ened as far as possible, the rates on purchases of mail exchange were again increased on August 1, so that this volume /night be reduced to a minimum. Telegraphic transfers of funds were made without cost, and transactions of this nature were encour aged. The bank’s purchasing rate on mail exchange was in creased from 10 cents per thousand per day discount to 15 cents 19 per thousand per day discount, which was equivalent to about 5J^ per cent per annum, while the selling price remained the same, 7J^ cents per thousand per day discount. This had the desired effect, as purchased by draft dropped from $208,000,000 for the month of July to $77,000,000 for the month of August, while there was a corresponding increase in transfers bought by wire. During July the bank purchased $84,000,000 telegraphic transfers, while in August the purchases amounted to $205,000,000. The total of all purchases by draft has steadily decreased, until now it averages less than $50,000,000 a month, while the banks’ telegraphic transfers purchased average $200,000,000 a month. (See Schedule 23.) In order to give prompt attention and efficient service to the member banks in telegraphic transfer, and to afford quicker communication between the Treasury and the Federal Reserve Board at Washington and the various Federal Reserve Banks, it was deemed advisable by the Board to install a leased-wire system between the Board and the Federal Reserve Banks. This leased-wire system was put into operation during the week beginning June 3, 1918. Additional wires have since been installed, and now all branch banks are included in the system. Washington and Chicago were made relay points for the East and West respectively. The Federal Reserve Bank of Chicago was given charge of the operations of the system, and the chief telegraph operator is stationed in this office, with a supervising operator at Washington (the other realy office) as an assistant. Since the installation of the system the volume of business has grown until it has become necessary to make the ChicagoCleveland-Washington wire a full duplex. An additional wire from Chicago to New York, via Washington, has been added, also one from Chicago to St. Louis, making the total of leased-wire system centering in the Federal Reserve Bank of Chicago in excess of 10,000 miles. At present 29 operators, including the chief, are employed in the main-line offices, and about 20,000 messages are carried monthly over the system, while 65 per cent of this number are relay. COLLECTION DEPARTMENT Under date of July 1, 1917, the Federal Reserve Bank of Chicago advised its member banks that it would receive for collection clearing-house notes and bills and miscellaneous drafts drawn on any point in the United States, subject to a service charge of 10 cents per item in addition to the actual exchange deduction made by the collecting bank. For a time the member banks were very slow to avail themselves of this privilege, and the majority of the items received by the Federal Reserve Bank were drawn on Chicago. The majority of the items drawn outside of Chicago were received from the large Chicago banks, 20 and in most instances were drawn on Federal Reserve cities. These items could be collected without an exchange deduction. In the first year of the operation of this collection feature the Federal Reserve Bank of Chicago handled an average of 76 items a day, 49 of which were drawn on Chicago. In order to stimulate interest in this collection system, the Federal Reserve Bank of Chicago on July 1, 1918, suspended the service charge of 10 cents per item, and after that date no charge was made other than to cover the charges made by the collecting bank, except that a charge of 15 cents per item was made for items returned unpaid. The purpose of the charge on returned items was to discourage the use of “dunning drafts,” which many banks have found burdensome. In the six months ending December 31, 1918, during which no service charge per item was made other than those referred to, the Federal Reserve Bank of Chicago handled an average of 362 collection items a day, which were received from banks dis tributed as follows: Other Federal Reserve Banks....................... .... Member banks located in other Federal Reserve districts......................... Indiana banks.................. Illinois banks (outside of Chicago)....................... Items Per cent 156 43 50 33 14 9 25 7 Items Chicago banks...... Iowa banks.................... Wisconsin banks............ Michigan banks 36 22 22 18 Per cent 10 6 6 5 GOLD SETTLEMENT FUND The importance of the gold settlement fund in developing the rapid transfer of credit, thus enabling elimination of an unneces sarily large float resulting from the slower method of com munication by mail, has been clearly demonstrated by the experiences of the Federal Reserve Bank of Chicago in the last year. These experiences, however, except as to volume, do not differ materially from those of other Federal Reserve Banks. The statistics covering the changes which have taken place from time to time in the gold settlement fund as it relates to the Federal Reserve Bank of Chicago are shown in Schedule 26. FOREIGN ACCOUNTS In 1918 no new foreign accounts were established by the Federal Reserve Bank of Chicago. A year ago the Federal Reserve Bank had a sterling gold account with the Bank of England aggregating $7,350,000. In the course of the year this decreased, until on December 31, 1918, it amounted to only $816,042. It is expected that the export business of the country will increase with the restoration of peace and the free movement of international commerce, and the Federal Reserve Bank of Chicago, in order to enable business interests to take full advan- 21 tage of the opportunity for developing commerce in foreign fields, is pursuing the policy of assisting in the development of proper banking facilities. BANKING QUARTERS During the year it has been necessary, in order to accommodate the various features of the bank’s operations, for the Federal Reserve Bank of Chicago practically to double its space in the Rector Building, 79 West Monroe Street. In addition to this, it occupies practically the entire floor of another office building and a very large floor space in a third building to house its fiscal agency operations, besides using vault space in several of the large banks and trust companies in Chicago. In planning for the future, the directors, at the end of 1918, purchased a site with a street frontage of 165 feet and a depth of 160 feet on La Salle, extending from Quincy Street to Jackson Boulevard. This is probably the most desirable site for the purposes of the Federal Reserve Bank in the city of Chicago, and the ground was acquired at an exceedingly low cost, the purchase price being $2,936,149. Plans for building operations have not yet been fuily developed. 22 APPENDIX Exhibit A.—Movement of principal earning assets of the Federal Reserve Bank of Chicago during the calendar year 1918. [In thousands of dollars; i. e„ 000 omitted.] Discount ed paper Other secured by discounted United paper States war obligations 2 1 Jan. 4............ Jan. 11.......... Jan. 18........... fan. 15, ___ feb. 1. ... .... Feb. 8........... Feh 1? Feb. 21......... Mar. 1........... Mar. 8.......... Mar. 15......... Mar. 22......... Mar. 29......... Apr $ Apr. 12__ __ Apr. 19. ___ Apr. 26..... .... May 3........... May 10........ May 17....... May 24. ..... May 31 ......... June 7 ...... June 14........ June 21........ June 28...... Julv 5............ July 12. . ...... July 19.......... July 26____ Aug 7 Aug. 9............ Aug. 16 . . .... Aug. 23....... Aug. 30........ Sept. 6........... Sept. 13____ Sept. 20......... Sept. 27......... Oct. 4............ Oct. 10 ........ Oct. 18.......... Oct. 25.......... Nov. 1 ........ Nov. 8........... Nov. 15......... Nov. 22........ Nov. 29.... .... Dec. 6............ Dec. ,3..... _... Dec. 20.......... Dec. 27.__ __ 25,863 26,032 38,838 41,468 50,704 43,034 46,587 43,025 5,303 8,030 4,357 5,035 6,164 5,957 20,988 33,614 56,496 48,965 38,974 34,390 32,719 34,678 36,318 33,822 40,308 47,452 67,132 77,649 79,893 99,914 109,210 121,416 112,132 126,725 120,533 146,992 151,361 157,717 169,044 187,576 193,575 188,736 152,405 184,276 158,336 143,363 116^878 123.047 113,544 116,904 103,493 106,124 68,249 54,857 67,332 69,456 49,958 34,668 37,254 35,085 30,360 28,189 29,490 29,142 31,673 29,542 25,153 30,103 32,057 34,903 48,908 49,599 48,052 51,596 56,842 60,513 72,608 78,548 85,682 91,790 111,568 138,527 128,575 112,568 90,432 82,904 93,619 97,367 92,500 80,792 72,618 66,974 59,144 64,015 84,967 95,032 93,877 81,640 66.548 60,987 65,515 56,104 50,401 54,668 (1+2) Bills bought in open market Total bills discounted Per cent and (1-5) bought 7'otal earning assets 3 4 5 6 7 94,112 80,889 106,170 110,924 100,6o2 77,702 83,841 78,110 35,663 36,219 33,847 34,177 37,837 35,499 46,141 63,717 88,553 83,868 87,882 83,989 80,771 86,274 93,160 94,335 112,916 126,000 152,814 169,439 191,461 238,441 237,785 233,984 202,564 209,629 214,152 244,359 243,861 238,509 241,662 254,550 252,719 252,751 237,372 279,308 252,213 225,003 18+426 184,034 179,059 173,008 153,894 160,792 8,370 8,578 9,002 8,521 10,039 10,899 14,401 15,927 19,073 16,432 20,649 27,025 27,655 47,024 46,446 48,103 48,002 47,356 45,665 42,627 41,011 30,621 26,151 24,380 21,681 18,414 18,831 19.251 18,368 17,284 8,583 9,549 13,180 14,714 15,740 16,549 16,393 17,211 20,272 34,047 37,063 37,295 37,583 32,515 32,684 32,145 36,015 37,357 97,624 98,137 90,361 75,068 102,482 89,467 115,172 119,445 110,701 88,601 98,242 94,037 54,736 55,651 54,496 61,202 65,492 82.523 92,587 111,820 136,555 131,224 133,547 126,616 121,782 116,895 119,311 118,715 134,597 144,414 171,645 188,690 209,829 255,725 246,368 243,533 215,744 224,343 229,892 260,908 260,254 255,720 261,934 288,597 289,782 290,046 274,955 311,823 284,897 257,148 219,441 221,391 276,683 271,145 244,255 235,860 25.2 29.1 33.7 34.7 45.8 48.6 47,4 45.8 9.7 14.4 8.0 8.2 9.4 7.2 22.7 30.1 41.4 37.3 29.2 27.2 26.9 29.7 30.4 28.5 29.9 32.9 39.1 41.2 38.1 39.1 44.3 49.9 52.0 56.5 52.4 56.3 58.2 61.7 64.5 65.0 66.8 65.1 55.4 59.1 55.6 55.8 53.3 55.6 41.0 43.1 42.4 45.0 113,635 100,504 128,663 133,981 126,473 101,417 110,931 106,465 107,449 99,385 92,682 101,884 115,890 135,718 126,624 128.370 148,741 142,790 144,456 137.116 132,261 127,043 129,427 128,807 144,681 154,466 180,847 197,892 219,031 264,927 252,989 250,153 222,364 230,964 236,513 267,528 266,874 264,341 271,565 298,228 301,403 302,667 322,576 326,944 300,018 272,269 236,563 238,512 293,805 288.266 263,376 255,981 23 MOVEMENT OF EARNING ASSETS § § § «< 1 FEDERAL RESERVE BANK OF CHICAGO MOVEMENT OF EARNING ASSETS DUNIN6 THE CALENDAR YEAR 19/6 Coon Sifter. Curre2:Sota5$Ms discounted, Gurve3: SiUs discounted and, Sought. Curve4 FotalSurrting .Assets, incl.V.S. Government Securities Gervc 5: Static of BdrFoonFilter to Jotai Sills discounted and Sought. A Curve! A\\\ 60 360 60 55 330 55 50 300 - 50 45 270 45 40 310 40 35 210 - 35 30 180 30 25 150 25 20 i'2O- 20 15 90- 15 JO 60 - 10 5 30 - 0- 0 -4 It US! S1521U 15222951219X3 012X3171421X51219X29023X61320274II 1/251 / 1522296132377 JAH. \fe£B 1 MCH\APR\MAY"\JUHE\JULY\AUG-\StrT\ OCT. 1 /YOK | DE(t 24 Exhibit B.—Movement of cash reserves, net deposits, Federal Reserve note lia bilities, and the reserve percentage of the Federal Reserve Bank of Chicago during the calendar year 1918. [In thousands of dollars: i. e., 000 omitted.] Total cash reserves Jan. 4........ Jan. 1l._... Jan. 18...... Ian. 25...... Feb. 1....... Feb. 8....... Feb. 15.__ Feb. 21__ Mar. 1...... Mar. 8...... Mar. 15.... Mar. 22.... Mar. 29.... Apr. 5___ Apr. 12..... Apr. 19..... Apr. 26..... May 3___ May 10..... May 17..... May 24..... May 31..... June 7....... June 14..... June 21..... June 28..... July 5....... July 12._.„. Julv 19..... July 26..... Aug. 2----Aug. 9...... Aug. 16.... Aug. 23..... Aug. 30.... Sept. 6...... Sept. 13.... Sept. 20.... Sept. 27.... Oct. 4....... Oct. 10..... Oct. 18..... Oct. 25..... Nov. 1...... Nov. 8..... Nov. 15.... Nov. 22.... Nov. 29..... Dec. 6___ Dec. 13.__. Dec. 20__ Dec. 27.__. Net deposits Federal reserve notes in actual circulation (2+3) Ratio of cash re serves to net deposit andFederal Reserve note liabilities combined 1 2 3 4 5 236,802 249,523 238,427 203,704 202,411 219,023 220,173 233,702 243,639 247,211 278,034 265,194 261,845 239,273 236,333 262,551 252,423 266 666 252,724 271,463 276,816 295,292 277,117 302,891 281,607 227,365 256,272 247,587 230,246 204,385 216,016 232,457 249,523 274,142 291,129 277,601 288,879 309,424 311,907 303,561 301,089 303,136 300,976 296,369 307,025 347,284 417,729 409,635 380,823 368,943 389,987 419,842 159,312 162,426 177,494 147,982 139,725 126,420 135,136 139,764 142,788 131,453 153,363 146,042 155,574 142,404 128,756 152,490 163,124 166,015 155,659 166,674 166,336 175,604 155,188 179,941 168,802 115,994 160.483 163,975 166,603 183,779 175,420 180,380 162,095 185,195 194,436 198,604 199,049 206,344 204,397 211,335 202,493 200,828 212,957 212,438 189,121 195,137 226.670 214,491 235,864 214,094 196,022 208,289 181,798 178,199 180,276 180,165 179,667 184,211 186,355 190,442 198,477 205,084 207,284 210,776 211,770 221,851 223,405 227,620 227,155 229,526 230,506 230,818 231,690 235,163 238,498 238,809 244,152 252,639 263,271 267,879 268,790 341,110 340,625 357,770 328,147 319,392 310,631 321,491 330,206 341,265 336,537 360,647 356,818 367,344 364,255 352,161 380,110 390,279 398,541 386,165 397,492 398,026 410,767 393.686 418,750 412,954 368,633 423,754 431,854 435,393 455,556 455,172 468,209 456,186 487,464 509,242 526,901 536,597 554,149 563,213 580,932 578,242 580,793 597,994 596,968 580,446 591,368 625,224 618,125 644,506 625,917 620,304 642,064 69.4 73.3 66.6 62.1 63.4 70.5 68.5 70.8 71.4 73.5 77.1 74.3 71.3 65.7 67.1 69.1 64.7 66.9 65.4 68.3 69.5 71.9 70.4 72.3 68.2 61.7 60.5 57.3 52.9 44.9 47.5 49.6 54.7 56.2 57.2 52.7 53.8 55.8 55.4 52.3 52.1 52.2 50.3 49.6 52.9 58.7 66.8 66.3 59.1 58.9 62.9 65.4 27x377 279352 287,829 294,071 302,269 314,806 328,297 337,548 347,805 358,816 369,597 375,749 379,965 385,037 384,530 391,325 396,231 398,554 403,634 408,642 411,823 424,282 433,775 25 MOVEMENT OF RESERVES AND DEPOSIT AND NOTE LIABILITIES FEDERAL RESERVE BARK OF CHICAGO DEPOSIT AND ROTE LIABILITIES, ALSO CASH RESERVES, DURING THE CALENDAR YEAR 1916 Curvet: JYetDeposits. Curve2:Jotal Cash,.Reserves Grrve3.■NgqregateHtetTtefwsitrarvdP'R.JtoteCzabiiitijes^ Curve 4:Rato) of Cash-Reserves to .Aggregate Jfet Tte/vosit and. RR.JVoteCzadttittes 80 600 V5 80 540 b<Sf 460)60 h# 420 ■50 45 40 ■4 zz a sis ss is /sense ext ov»svhzvsvbxis sexsasmsn es/s s&bsi32)& JAN | AEB | MCH 1 A PH \MAY\JUNE 1 JULY \AUG- kS^r.l OCT | NOA | DEC. 26 Schedule 1.—Balance Sheet—Comparative statement of condition of the Federal Reserve Bank of Chicago. Dec. 31. 1918 ASSETS Bills discounted, members............................... $164,088,997.94 62,880,918.85 Bills discounted, bought.................................. United States bonds and notes........................ 20,121,500.00 Investments--------Total earning assets....... ...................... 247,091,416.79 Real estate (site for new building)..... ............ Interest accrued on United States bonds and Dec. 31, 1917 Dec. 31. 1916 $105,923,175.99 $ 4,437,460.35 10,337,161.09 9,182,429.93 10,375,100.00 10,384,600.00 1,325,760.88 125,490,205.92 26,475,482.32 2,936,149.26 ........................... 86,001.33 63,695.00 Premium on United States bonds................... 5 per cent redemption fund against Federal 829,390.00 ........................... Reserve bank notes....................................... Liberty loan bonds. $10 participation certi 9,450.00 163,100.00 ficates___ .'..................................................... Furniture and fixtures..... ................................ Cost of unissued Federal Reserve notes ----330,615.85 30,941.45 Due from member banks, overdrafts............. 5,992,720.41 26,784,494.45 Due from Federal Reserve Banks—.............. 8,178,412.26 6,565,000.00 Federal Reserve Banks, transfers bought....... 19,868,657.09 41,060,921.89 Transit and exchanges for clearing house..... 10,635,500.00 26,819,995.00 Federal Reserve and national bank notes..... 32.189,305.00 23,234,185.00 Gold coin and gold certificates......... .............. 7.350,000.00 816,042.43 Bank of England sterling gold account-----963,872.27 1,797,544.96 Other lawful money.......................................... 58,960,460.00 Gold settlement fund......... .............................. 106.772,373,57 130,723,530.00 275,803,010.00 Gold with Federal Reserve agent................... 646,490.00 Gold redemption fund Federal Reserve notes 15,151,205.00 50,896.48 193,311.66 28,304.53 67,957.83 1,723.57 29,913,819.08 4,692,553.71 2,986,185.00 27.600,625.00 396,102.95 26,183,000.00 200,000.00 Total cash reserve. Other assets......... ............. 423,574,360.96 1,399,491.71 230,833,657.27 349,181.34 54,379,727.95 Total assets..... ..... 777.187,612.84 401,905,745.14 118,789,962.13 11,185,050.00 Capital paid in._................................................ 3,316,022.56 Surplus....... ........................................................ Profit and loss......... ........................................... 3,100,223.38 Reserve for franchise tax............ ..................... 89,248.50 Discount on United States bonds................... 514,586.45 Unearned discount..... ....................................... Unearned interest, investments...................... 19,612.60 Reserved for sundry expenses............ ............ 1,784.72 Difference account,............................................ 450,938,010.00 Federal Reserve notes outstanding................. 18,525,800.00 Federal Reserve bank notes outstanding....... 3,700,116.20 Federal Reserve bank transfers sold.............. Liberty loan, $10 participation certificates 9,450.00 sold.................................................................. Uncollected funds......... ..................................... 32,545,315.02 6,566,290.10 United States Government deposits.-............ 14,743,259.20 Due to Federal Reserve Banks....................... Due to member banks, reserves......... ............ 230,604,383.69 1,328,460.42 Due to nonmember clearing banks................. 9,091,700.00 215,799.18 6,683,550.00 LIABILITIES Total liabilities....................................... 777,187,612.84 77,603.50 318,087.33 4,833.62 254.61 190,788,530.00 61,978.07 46,451.23 6,051.22 5,391.08 1,471,347.45 163,100.00 18,183,306.82 3,052,436.84 6,165.983.77 169,174,348.05 3,198,413.97 2,045,784.95 14,550,742.93 95.390,012.65 401,905,745.14 118,789,962.13 27 Schedule 2.—Balance sheet of the Detroit branch, Federal Reserve Bank of Chicago, as at the close of business Dec. 31, 1918. ASSETS. Rediscounts............................................................................................................................ $ 308.928.50 Rediscounts secured by United States securities............................................... . . ........... 163,194.00 Collateral notes. United States securities.......................................................................... 12.640,750.00 Acceptances............................................................................................................................ 1,185,041.95 Total discounts and investments.-.......................................................................... 14,297,914.45 Transit items, member and nonmember banks.-.............................................................. Exchanges for clearing house............................................................................................... 4,373.32 67,939.32 Total transit and exchanges for clearing house.-.................................................. 72,312.64 Federal Reserve notes on hand........................................................................................... National Bank notes and notes of other Federal Reserve Banks..... ............................ Gold coin and gold certificates............................................................................................ Other lawful money.-............................................................................................................ 8,609,490.00 1,680,300.00 260,000.00 595,003.84 Total cash reserve......... ............................................................................................ 855,003.84 Total assets................................................................................................................. 25,515,020.93 LIABILITIES. Unearned discount—..............................................................................................................$ 16,373.69 Difference account............................................................................................................ 100.90 Cashiers’ checks, etc......... .................................................................................................... 672.63 Due to head office......... ........................................................................................................ 25,497,873.71 Total liabilities.......................................................................................................... 25,515,020.93 Schedule 3.—Profit and loss statement of Federal Reserve Bank of Chicago covering 1918, 1917, and 1916. 1918 1917 1916 Earnings for year._.............................................................. $8,481,747 Net service charges in excess of transit department dis bursement......................................................................... » 155,672 $2,020,714 Total earnings__ .................................................... 8,326,075 2 ,022.278 665,935 Expense of operation of bank proper............................... Other expenses..................................................................... Cost of Federal Reserve currency issued (including expressage, insurance, etc.)............................................ Cost of Federal Reserve currency unissued, charged off Miscellaneous charges account note issued..................... Depreciation on furniture and equipment....................... Depreciation on United States bonds.—.......................... 1,093,317 317,113 929 232,370 246 375,002 13,679 13,004 159,824 43,001 2,314 32.225 237,118 5,113 $665,935 1,564 25,660 Total expenses_____ __ 1.495,002 792,526 262,730 Earnings for year...................... Less miscellaneous deductions.. 6,831,073 25,992 1,229,751 .................... 403,205 Net earnings for year..................................... ................... Profit and loss, Jan. l._...................................... ................ Amount paid by Federal Reserve Bank, Minneapolis, Jan. 30, 1917, to equalize stock of said bank trans ferred to Federal Reserve Bank of Chicago, capital stock....... .......................................................................... 6.805,081 1,229,751 61,978 403,205 20,091 6,805,081 1,293,856 Net income............................ 2,127 423,296 Dividends paid................................. 603,602 862,131 360,648 Interest paid on stock surrendered. 1,033 126 669 Profit and loss, Dec. 31. 1917 6,200.446 431,598 61,978 1 Deduct from earnings. Figure represents cost of operation of transit department in excess of service charges which were discontinued June 15, 1918. 2 Dividends paid on June 29, 1917, covered the period from Jan. 1, 1916, to June 30, 1916, in clusive, and amounted to $205,710. Dividends paid on Dec. 29, 1917, covered the period from July 1, 1916, to Dec. 31, 1917, inclusive, and amounted to $654,347. 28 July Aug ust Sep tember 4 4 4 4 4 4 Dece mber Jun e 4 ' Ma y 4 Nov emb er April 4 Octo ber Ma rch Collateral loans, 15 days or less..... Rediscounts: 16 to 30 days ._ ........................ 31 to 60 days................................. 61 to 90 davs.................................. Agricultural paper, 91 days to 6 months..... .................................. Secured by Government obligations, 1 to 15 days..................... Secured by Government obligations, 16 to 90 days._................ Trade acceptances: 1 to 15 days................................... 16 to 60 days... ...... ...................... 61 to 90 days......... ........................ ' Fe brua ry 4 ' Janu ary Schedule 4.—Discount rates, Federal Reserve Bank of Chicago, 1918. 4 4 4)4 414 414 414 414 414 414 414 414 414 414 414 4)4. 4)4 414 414 414 414 414 414 414 414 414 414 5 5 5 5 5 5 5 414 414 414 414 414 5X 5)4 514 514 514 514 514 514 514 514 514 514 4 4 4 4 4 4 3)4 314 314 314 4 4 4 4 4 4 414 414 414 414 4J4 414 1414 >414 3)4 314 314 314 414 414 414 414 414 414 414 414 3)4 3)4 314 314 414 414 414 414 414 414 414 414 4 4 4 4 414 414 414 414 414 414 414 414 1 Preferential rate of 4 per cent on paper secured by Fourth Liberty loan bonds where banks do not charge rate exceeding 4J£ per cent. Schedule 5.—Money rates in Chicago, 1918. January. February. May. April. March. June. | Low. High. Low. High. Low. High. Low. High. Low. High. Low. High. Demand money....... Commercial paper.... Brokers' 6 months' paper..................... Year money............. Acceptances............. Notes secured by certificates of in debtedness............ 514 514 6 6 514 6 6 6 6 6 6 6 6 6 514 514 6 6 6 514 45T6 6 6 6 6 6 414 6 514 5 5 August. July. 4J< /6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 514 6 ’ 6 W 5 5 5 September October. November. December. 5 Low. High. Low. High. Low. High. Low. High. Low. High. Low. High. Demand money....... Commercial paper.... Brokers' 6 months’ paper..................... Year money............. Acceptances........... Notes secured by certificates of in debtedness............ 6 6 614 6 6 6 614 6 6 6 614 6 6 6 614 6 6 6 614 6 6 514 614 6 6 614 614 6 514 614 614 6 514 614 614 6 614 614 6 614 614 514 514 414 6)4 614 414 5y2 5 5 5 5 5y2 5 5 Schedule 6.—Member banks in the Federal Reserve district of Chicago authorized to accept up to 100 per cent of their individual capital and surplus. Name. Location. Ap proved. First National Bank............................................................... National Bank of the Republic............................................ Continental & Commercial National Bank........................ Merchants Loan & Trust Co................................................ National City Bank............................................................... Drovers National Bank......................................................... Fort Dearborn National Bank............................................. Corn Exchange National Bank Harris Trust & Savings Bank............................................... Union Trust Co.„.................................................................... First National Bank._............................................................ Chicago, Ill............................ ....... do....................................... ....... do....................................... ....... do....................................... ....... do....................................... ....... do....................................... ....... do......................... ............. ....... do.................................. .... ....... do....................................... ....... do....................................... Milwaukee, Wis..................... 1915 1916 1917 1918 1918 1918 1918 1918 1918 1918 1918 i 29 Schedule 7.—New national bank members, 1918. Name of bank. Location. Shares sub scribed. First National Bank. ............................................................. Minonk National Bank . ..................................................... Hume, 111................................ Minonk, 111............................. Horicon, Wis.......................... Blanchardville, Wis............... La Fayette, Ind..................... Cuba, "Ill................................. Sheyboygan, Wis................... Webb, Iowa............................ Hinckley, Ill........................... Gridley, Ill.............................. Seymour, Iowa....................... Roland, Iowa.......................... Marine City. Mich—............ 20 17 24 17 90 26 300 30 19 11 36 22 38 First National Bank.... .......................................................... Do ....................................................................... First-Merchants National Bank First National Bank .............................................................. Security National Bank......................................................... Citizens National Bank......................................................... First National Bank............................................................... Do ....................................................................... Seymour National Bank........................................................ First National Bank.............................................................. Liberty National Bank.......................................................... Schedule 8.—National banks liquidated during 1918. ♦ Location. Name of bank. Disposition. Shares surren dered. Virginia, Ill............ Absorbed by Petefish, Skiles & Co., Virginia, Ill. f American National Bank....... La Fayette, Ind..... First National Bank............... ....... do....................... ^Succeeded by First-Merchants Na- 1 I Merchants National Bank..... ....... do....................... J tional Bank, La Fayette, Ind. State National Bank.............. Bloomington, Ill..... Succeeded by State Bank of Bloomington. Ill. First National Bank............... Carsonville, Mich... Absorbed by State Bank of Carsonville, Mich. Fond du Lac National Bank.. Fond du Lac, Wis.. Merged with First National Bank, Fond du Lac, into First-Fond du Lac National Bank. Farmers National Bank......... Valparaiso, Ind...... Converted into Farmers State Bank, Valparaiso, Ind. Fayette National Bank.......... Connersville, Ind.... Consolidated with Farmers & Merchants Trust Co., Connersville, Ind. Farmers National Bank ___ Schedule 9.—State 50 83 189 240 210 18 150 60 84 bank membership in Federal Reserve Bank of Chicago by states and cities, with year of admission. ILLINOIS City Bank Admitted Auburn...................... Auburn State Bank........................................................... 1918 Barrington................ First State Bank of Barrington........................................ 1918 Bloomington____ __ State Bank of Bloomington.............................................. 1918 Charleston................ Charleston Trust & Savings Bank................................... 1918 Chicago..................... Austin State Bank..._.................................................... ....1917 Capital State Savings Bank............................................ 1918 Central Trust Co. of Illinois........................................... 1914 Chicago Savings Bank & Trust Co................. . .............1917 Depositors State & Savings Bank... .............................. 1918 First Trust & Savings Bank....... .................................... 1917 Foreman Bros. Banking Co.......................................... ..1917 Harris Trust & Savings Bank..... . ......... ........................ 1917 Home Bank & Trust Co................................................. 1918 Hyde Park State Bank.................................................... 1917 Illinois Trust & Savings Bank.........................................1918 Kaspar State Bank............ 1917 Madison & Kedzie State Bank............ ...........................1918 Mechanics & Traders State Bank................................... 1918 Mercantile Trust & Savings Bank.................................. 1918 Merchants Loan & Trust Co._........................................ 1917 Noel State Bank............................................................... 1917 Northern Trust Co.......................................................... 1918 North Side State Savings Bank...................................... 1918 30 Schedule 9.—State bank membership in Federal Reserve Bank of Chicago by states and cities, with year of admission—Continued. City Chicago—Cont. Cicero............... Des Plaines....... Elizabeth_____ Elmhurst_____ Eureka__ ____ Evanston_____ Fulton............... Geneva........ *.... Hinsdale........... Joliet—.............. Kewanee........... . La Grange......... Magnolia_____ Marshall............ Martinsville...... Matteson........... Mattoon............ Moline....... ........ Mount CarrollOak Park.......... Oswego.............. Shannon............ Springfield... ..... St. Charles......... Sycamore........... Wenona............. Angola—.......... Bargersville__ Colfax............. Connersville.... Cromwell... ..... Elkhart........... Hillsboro____ Jamestown...... Kentland........ . Marion______ North Liberty.. Peru................. Richmond...._... Rochester........ South Bend__ South WhitleyTerre Haute__ Tipton.............. Winamac......... ILLINOIS—Continued Bank . North-Western Trust & Savings Bank.......... Security Bank of Chicago....... ....................... Standard Trust & Savings Bank..._............... State Bank of Chicago............ ....................... Union Trust Co.............................................. United States Bank of Chicago..................... . Kirchman State Bank.................................... . Des Plaines Bank..... ...................................... . Elizabeth State Bank.......... .......................... . Elmhurst State Bank....... . ............................ . Farmers State Bank of Eureka...................... . Evanston Trust & Savings Bank.................. . State Bank of Evanston.................................. . Whiteside County State Bank........................ . State Bank of Geneva..... ............................... . Hinsdale State Bank....................................... . Commercial Trust & Savings Bank of JolietJoliet Trust & Savings Bank.......................... . Union State Savings Bank & Trust Co......... La Grange State Bank.................................... First State Bank of Magnolia........................ Marshall State Bank....................................... Martinsville State Bank........... :................... . First State Bank of Matteson.—.................... Central Ill. Trust & Savings Bank................. Moline Trust & Savings Bank........................ Peoples Savings Bank & Trust Co................. State Savings Bank &t Trust Co..................... Carroll County State Bank..... ...... ................ Oak Park Trust & Savings Bank.......... ......... Suburban Trust & Savings Bank........ . ......... Oswego State Bank......................................... State Bank of Shannon................................... Ridgely-Farmers State Bank—........................ Stewart State Bank..—..................................... Pierce Trust & Savings Bank........ ................ First State Bank of Wenona........................... INDIANA Steuben County State. Bank...... Farmers State Bank................... Farmers State Bank................... . Farmers Merchants Trust Co. Sparta State Bank..—.................. St. Joseph Valley Bank.............. Hillsboro State Bank.................. Citizens State Bank... ............... Discount & Deposit State Bank. Kent State Bank......................... Grant Trust & Savings Co... ..... North Liberty State Bank......... Peru Trust Co.......... .................. Dickinson Trust Co..... .............. United States Bank & Trust Co. American Trust Co..................... St. Joseph Loan & Trust Co...... Gandy State Bank... . ................ Terre Haute Trust Co................ Farmers Loan & Trust Co......... First Trust & Savings Bank..... . Admitted .........1918 .........1918 .........1917 .........1917 .........1917 .........1917 .........1917 ......... 1918 ......... 1919 .........1915 .........1918 ........ 1918 ........ 1917 ........ 1919 ........ 1918 ........ 1918 ........ 1915 ........ 1917 ........ 1917 ........ 1918 ........ 1918 ........ 1918 ....... *1917 ........ 1918 ........ 1918 ........ 1918 ........ 1918 ........ 1918 ........ 1918 ........ 1918 ........ 1917 ........1918 ........1918 ........1919 ........ 1918 ........1918 ........ 1918 .1918 .1918 .1919 .1918 .1918 .1917 .1918 .1918 .1917 .1918 .1918 .1918 .1918 .1918 1919 1918 1918 1918 1918 1918 1918 31 Schedule 9.—State bank membership in Federal Reserve Bank of Chicago by states and cities, with year of admission—Continued. IOWA Bank Admitted City Algona...................... County Savings Bank....................................................... 1918 Alta Vista..... ............Alta Vista Savings Bank................................................... 1918 Ames.........................Story County Trust Sz Savings Bank................................ 1918 Avoca........ . ............. Avoca State Bank............................................................. 1918 Audubon...................Iowa Savings Bank............................................................ 1918 Barnes City.............. Farmers Savings Bank....................................................... 1918 Battle Creek.______ Battle Creek Savings Bank...............................................1918 Bellevue__________ Bellevue State Bank......................................................... 1918 Blairsburg................. State Bank of Blairsburg.................................................. 1918 Brighton.-.................Brighton State Bank.—..................................................... 1918 Britt........ . ............... Commercial State Bank.................................................... 1918 Cedar Falls..... ..........Iowa State Savings Bank.................................................. 1918 Security Trust & Savings Bank..................................... 1917 Chariton................... State Savings Bank........................................................... 1918 Charter Oak............. Farmers State Bank.......-................................................. 1918 Cherokee..... . ............Cherokee State Bank......... .............................................. 1918 Clinton..................... Peoples Trust & Savings Bank........ ..... 1917 College Springs____f Farquhar Savings Bank........... 1918 Davenport________ American Commercial Savings Bank............................... 1918 Decorah.....................Citizens Savings Bank.... ..... 1918 Winnesheik County State Bank....... ............................... 1918 Des Moines...............Bankers Trust Co.............................................................. 1918 Central State Bank...................................... 1918 First Trust & Savings Bank........................................... .1919 Iowa Loan & Trust Co._................................................. 1917 Elberon..................... Farmers State Bank........... 1918 Eldora....................... Citizens Savings Bank...................................................... 1918 Elkader..................... Elkader State Bank...........................................................1918 Ellsworth_________ Farmers State Bank of Ellsworth.................................... 1918 State Bank of Ellsworth................................................. 1918 Fairbank................... Fairbank State Bank........................................................ 1918 Fairfield.................... Iowa State Savings Bank................................................. 1918 Fostoria........ ............ Citizens Savings Bank.......... ...1918 Garwin..... ...... .......... Garwin State Bank........................................................... 1918 Germania................. Farmers & Drovers State Bank...................................... 1918 Gilbert........ ..............Gilbert Savings Bank...... ...... 1918 Gilman.......... . .......... Citizens Savings Bank......... ............................................ 1917 Grant........................ Farmers Savings. Bank............. 1919 Humboldt.................Peoples State Bank............................................................ 1918 Jefferson................... Jefferson Savings Bank......................................................1918 Kellerton.................. Kellerton State Bank.........................................................1918 Knoxville------------- Guaranty State Bank........................................................1918 Leon..... —............... Farmers & Traders State Bank.................... 1918 Lockridge..................Lockridge Savings Bank..... .............................................. 1918 Logan..... .... . ............ State Savings Bank........................................................... 1918 Lowden... ................. Lowden Savings Bank...................................................... 1918 Lytton...................... Farmers Savings Bank...... ..... 1919 Malcom.....................Malcom Savings Bank...................................................... 1918 Mapleton.................. Mapleton Trust & Savings Bank......................................1918 Marshalltown........... Marshalltown State Bank.......... ....................................... 1918 Mason City.............. Commercial Savings Bank................................................ 1917 Mediapolis................ Commercial Stat'e Bank.................................................... 1918 Missouri Valley____ State Savings Bank........................................................... 1918 Mondamin................ Mondamin Savings Bank.................................................. 1918 Monticello.................Lovell State Bank............................................................. 1918 Monticello State Bank..................................................... 1918 Mount Ayr............... Mount Ayr State Bank..................................................... 1918 New Hampton... -.... State Bank of New Hampton—........................................ 1918 n Schedule 9.—State bank membership in Federal Reserve Bank of Chicago by states and cities, with year of admission—Continued. IOWA—Continued Bank Admitted City Newton..................... Citizens State Bank......................................................... 1918 Jasper County Savings Bank........ 4..................... ........... 1918 1918 Ogden........................ City State Bank..... ............................................. Osage........................ Home Trust & Savings Bank.......................................... 1918 Ottumwa..... ............. Ottumwa Savings Bank..... . ............................................ 1917 Perry......................... Peoples Trust & Savings Bank........................................ 1918 Remsen..................... Farmers Savings Bank..................................................... 1918 Riceville.................... Riceville State Bank........................................................ 1918 Roland.......... ............ Farmers Sayings Bank......................... ................. ......... .1918 Royal........................ Home State Bank............................................................. 1918 Sac City.................... Farmers Savings Bank..................................................... 1918 Sac County State Bank........................ 1918 Sioux City................. Bankers Loan & Trust Co............................................... 1916 Sioux Center........... Sioux Center State Bank..... . .......................................... 1918 ..**1917 Sutherland................ First Savings Bank............ Terril......................... Terril Savings Bank........ ................................................ 1918 Thompson................. Statje Bank of Thompson........................................ ....... 1918 Tipton....... ................ Farmers & Merchants Savings Bank.............................. 1918 Ute............................ State Savings Bank.......................................................... 1918 *1917 Vail............................ Farmers State Bank.......... ............................. Wapello..................... Wapello State Savings Bank........................................... 1918 Waterloo................... Waterloo Bank Trust Co................................... ............. 1918 MICHIGAN Adrian..—................... Adrian State Savings Bank....... —......... Commercial Savings Bank..................... Lenawee County Savings Bank..... ....... Albion—..................... Albion State Bank................................. Commercial & Savings Bank................. Alpena....................... Alpena County Savings Bank............. . Ann Arbor................ Farmers Mechanics Bank................. State Savings Bank................................ Armada....... .............. Armada State Bank..—........................... Farmers State Bank... ...... .................... Bay City................... Bay City Bank..... ................................. Farmers State Savings Bank........ ........ Peoples Commercial & Savings Bank... Benton Harbor........ Benton Harbor State Bank______ ___ Big Rapids............... Big Rapids Savings Bank..... ................ Citizens State Bank............................... Carson City.............. Farmers & Merchants State Bank........ Cassopolis................. Cass County State Bank........ . ............ Charlotte_____ ____ Eaton County Savings Bank................. Chelsea... .................. Farmers & Merchants Bank................. Kempf Commercial Savings Bank-----Coloma...................... State Bank of Coloma........................... Coopersville.............. Peoples Savings Bank............................ Davison—.................. Davison State Bank........ . .................... Dearborn...... ............ Dearborn State Bank.......... . ................ Detroit...................... American State Bank............................ Bank of Detroit...................................... Central Savings Bank—........................ Detroit Savings Bank............................ Dime Savings Bank............................... First State Bank of Detroit—................ Peninsular State Bank....... ................... Peoples State Bank...... ,......................... United Savings Bank of Detroit........... Wayne County & Home Savings Bank. ....1918 ....1918 ....1918 ....1918 ....1915 ....1918 ....1918 ....1918 ....1919 ....1918 ....1918 ....1918 ....1918 ....1918 ....1918 ....1918 ....1918 ....1918 ....1917 ....1918 ....1919 ....1918 ....1918 ....1918 ....1918 ...*1917 ....1918 ....1917 ....1917 ....1917 ....1917 **1917 ....1917 ....1918 ....1917 33 Schedule 9.—State bank membership in Federal Reserve Bank of Chicago by states and cities, with year of admission—Continued. MICHIGAN—Continued City Bank Admitted Edmore..................... Edmore State Bank...................... ..........1918 Elk Rapids................ Elk Rapids State Bank................ ..........1918 Farmington..... ......... Farmington State Savings Bank.. .......... 1918 Fenton.......................Commercial Savings Bank... .1918 Fenton State Savings Bank............................................. 1918 Flint..... .................... Citizens Commercial & Savings Bank............. ............... 1917 Genesee County Savings Bank..... ..... 1918 Industrial Savings Bank.................................................. 1917 Union Trust & Savings Bank........ ................................ 1917 Flushing.................... Peoples State Bank................ .-......................................... 1918 Frankenmuth.'...........Frankenmuth State Bank................................................. 1918 Fremont.................... F'remont State Bank......................................................... 1918 Old State Bank........ ............................... *1917 Grand Haven............ Grand Haven State Bank...... . .........................................1917 Peoples Savings Bank...................................................... 1918 Grand Rapids........... City Trust & Savings Bank.............................................. 1918 Commercial Savings Bank............................................... 1918 Grand Rapids Savings Bank........................................... 1917 Kent State Bank.............................................................. 1917 Peoples Savings Bank................... 1919 Greenville............... ... Commercial State Savings Bank..................................... 1918 Hart..... . ................... Oceana County Savings Bank........................................ *1917 Highland Park.—.... Highland Park State Bank............................................... 1917 Hillsdale.................... Hillsdale Savings Bank.....................................................1918 Holland..................... First State Bank......... . .................................................... 1918 Holland City State Bank.................................................1918 Hudson...................... Boies State Savings Bank...... .......................................... 1917 Thompson Savings Bank................................................. 1918 Imlay City................ Lapeer County Bank........................................................ 1918 Peoples State Bank of Imlay City..... . ........................... 1918 Ionia.......................... State Savings Bank...........................................................1918 Jackson..................... Central State Bank.................................... 1917 Jackson State Savings Bank............................................ 1918 f Union Bank...................................................................... 1917 Jonesville_ _______ Grosvenor Savings Bank...... . .......................................... 1918 Lakeview.......... ........ Commercial State Savings Bank—....... :.......................... 1918 Farmers & Merchants State Bank.................................. 1918 Lansing..................... Lansing State Savings Bank...... . .................................. *1917 Lapeer....................... Lapeer Savings Bank—..................................................... 1917 Lenox.......... ..............Macomb County Savings Bank..—................................... 1919 Lowell....................... City State Bank.................................... 1918 Ludington................. Ludington State Bank...................................................... 1918 Manchester____ ___ Peoples Bank........... . ....................................................... 1918 Union Savings Bank........................................................ 1918 Manistee—................ Manistee County Savings Bank..................... 1918 Marcellus.................. G. W. Jones Exchange Bank............................................ 1918 Marshall................... Commercial Savings Bank.......................... 1918 Milan... —............... Milan State Savings Bank................................................ 1917 Milford..................... First State Bank............................................................... 1918 Monroe..................... B. Dansard & Sons State Bank of Monroe......................1917 Morenci........ ............Wakefield State Bank....................................................... 1918 Mount Pleasant____ Exchange Savings Bank.........................’......................... 1917 Isabella County State Bank........................................... 1918 Mount Clemens...._... Ullrich Savings Bank.............. 1918 Nashville................... Farmers & Merchants Bank............................................. 1918 Niles.......................... Niles City Bank..—............................................................ 1917 Onsted...................... Onsted State Bank............................................................ 1918 Otsego—................... Citizens State Savings Bank............................................ 1918 Paw Paw....................Paw Paw Savings Bank............ .......................................1918 34 Schedule 9.—State bank membership in Federal Reserve Bank of Chicago by states and cities, with year of admission—Continued. MICHIGAN—Continued Bank Admitted City Petersburg.......... . .... H. C. McLachlin & Co. State Bank............................... 1917 Petoskey................... First State Bank of Petoskey....................................... 1918 Pontiac...................... American Savings Bank.................................................. 1918 First Commercial Bank......... .......................................... 1919 Pontiac Savings Bank...................................................... 1918 Port Huron........ ...... Federal Commercial & Savings Bank..... ........................1917 Redford..................... Redford State Savings Bank........................................... 1918 Rochester.................. Rochester Savings Bank............................................. ...*1917 Rogers City.............. Presque Isle County Savings Bank.................................1918 Romeo..... . .............. Romeo Savings Bank.......... .................... 1917 Royal Oak....... _....... First Commercial State Bank............ 1918 Royal Oak Savings Bank................................... ,............ 1918 St. Clair..... ... ........... Commercial 8z Savings Bank......................... *1917 1918 Saginaw..................... Bank of Saginaw..... ...... Saline........ ................ Saline Savings Bank........................................................ 1918 Saugatuck................. Fruit Growers State Bank............................................... 1915 South Haven............ Citizens State Bank..... ................................................... 1918 Suttons Bay.............. Leelanau County Savings Bank......... ............................ 1918 1918 Tecumseh.................. Lilley State Bank......... Tecumseh State Savings Bank... . .................................. 1918 Traverse City........... Traverse City State Bank.................... J......................... 1918 1918 Warren...................... State Savings Bank of Warren.............. Washington_______ Washington Savings Bank............................................... 1918 Wayne....................... Wayne Savings Bank.......... ............................................ 1919 Williamston.............. Williamston State Bank...................................................1918 WISCONSIN Baraboo__ Burlington.. Clinton....... Delavan..... Green Lake. Kenosha..... Madison..... Milwaukee.. Mineral Point.. Mosinee.......... Oakfield.......... Platteville....... Plymouth........ Sheboygan...... Sturgeon BayWaupun.......... Wausau....... .... Winneconne.—. .. Bank of Baraboo.......................... .. Bank of Burlington...................... . Citizens Bank............................... .. Citizens Union Bank of Delavan.. .. Green Lake State Bank... ........... .. Merchants & Savings Bank......... .. Bank of Wisconsin........................ . American Exchange Bank..... ...... Badger State Bank.......... ............ Marshall & Ilsley Bank................ Second Ward Savings Bank......... .. Iowa County Bank....................... . State Bank of Mosinee................. . Bank of Oakfield........................... . State Bank of Platteville............. . Plymouth Exchange Bank........... State Bank of Plymouth... . ......... .. Bank of Sheboygan....................... Citizens State Bank...................... . Bank of Sturgeon Bay.................. . State Bank of Waupun................. . Marathon County Bank..—.......... . Union Bank of Winneconne......... *Capital and reserve paid in following year. **Reserve paid in following year. ■(■Nationalized in February, 1919. ..1918 ..1918 ..1917 ..1919 ..1918 ..1918 ..1914 *1917 ..1915 ..1917 ..1918 ..1918 ..1918 ..1918 ..1918 ..1918 ..1918 ..1918 ..1918 ..1918 ..1918 ..1918 ..1918 35 Schedule 10.—Member banks authorized and approved in 1918 to exercise fiduciary powers. Bank. Location. Bank. Location. First National Bank........... Farmers’ National Bank.... Citizens' National BankNational Bank of Decatur.. First National Bank........... Do................................. Commercial National Bank First National Bank........... Union National Bank........ First National Bank........... Commercial National Bank First National Bank........... Citizens' National BankHome National Bank......... Dana, Ind. Edinburg, Ind. Royal, Iowa. Decatur, Ill. Everly, iowa. Chillicothe, Ill. Appleton, Wis. Kewanee, Ill. Macomb, Ill. Monticello, Ill. Fond du Lac, Wis. Cherokee, Iowa. Appleton, Wis. Thornton, Ind. First National Exchange Bank................................ First National Bank......... Do................................ Do................................ Do.................... Do................................ American National Bank............................... First National Bank of Englewood...................... City National Bank.......... La Salle National Bank.... First National Bank......... Port Huron, Mich. New Castle, Ind. New Carlisle. Ind. Marshalltown, Iowa Hillsdale, Mich. Dublin, Ind. Arlington, Iowa. Chicago, Ill. Kankakee, Ill. La Salle, Ill. Winamac, Ind. Schedule 11.—Certificates of Indebtedness. ANTICIPATING THIRD LIBERTY LOAN. Ian. Feb. Feb. Mar. Apr. Apr. Allotted to Rate of Chicago district. interest. Date of issue. Total issue. 22. 8, 27. 20, 10, 22, $400,000,000 500,000,000 500,000,000 543,032,000 5 51,22b, 500 517,026,000 $30,359,000 42,352,000 59,168,000 64,414,000 65,850.000 63,212,000 3.011,284,500 325,355,000 1918. 1918. 1918. 1918. 1918. 1918. Total. Per cent. 4 4 4^ 4^ 4H 4J4 Date of maturity. Sub scribers. 22. 9, 28, 18, 9, 18. 910 2,193 2,856 3,115 2,662 2,056 Apr. May May June July July 1918 1918 1918 1918 1918 1918 ANTICIPATING TAXES, 1918. Nov. Ian. Feb. Mar. Apr. May 30. 2, 15, 15. 15, 15, 1917. 1918. 1918. 1918. 1918. 1918. $691,872,000 491,822,500 74,100,000 110,962,000 71,880,000 183,767,000 $30,139,500 48,054,500 15,709,000 13,286,500 15,742,000 40,002,500 Total.... 1,624,403,500 162,934,000 4 4 4 4 4 4 June 25, 1918 ....... do............... ....... do............... ....... do............... ....... do............... ....... do............... 89 230 238 183 155 155 . ANTICIPATING FOURTH LIBERTY LOAN. June July July Aug. Sept. Sept. Oct. 25, 9, 23, 6, 3, 17. 1. 1918. 1918. 1918. 1918. 1918. 1918. 1918. $838,553,500 759,438,000 584.750.500 575.706.500 639,493,000 625.216.500 641,069,000 $131,481,500 101,203,000 83.310.500 87.292.500 88,279,000 88.878.500 82,759,000 Total.... 4,664,227,000 663,204,000 4^ 4H 4^ 4^ 4^ 4H 4H Oct. 24, Nov. 7, Nov. 21, Dec. 5. Jan. 2, Jan. 16, Jan. 30, 1918 1918 1918 1918 1919 1919 1919 4,084 4,258 4,240 4,187 3,904 3,858 3,641 July 15. 1919 Mar. 15, 1919 363 1,082 ANTICIPATING TAXES. 1919. Aug. 20, 1918.................... Nov. 7. 1918........... $157,550,500 794,172,500 $22,003,000 103,828,000 Total....................... 951,723,000 125.831,000 4 4J4 ANTICIPATING FIFTH LIBERTY LOAN. Dec. 5, 1918.................... Dec. 19, 1918.................... $613,438,000 572,494,000 $97 235 500 83,189,500 Total....................... 1,185,932,000 180,425,000 4^ 4^ May 20: 1919 3 79$ 3X>56 36 Schedule 12.—Depository bank division statistics. SECOND LIBERTY LOAN. Payment dates. Amount paid by credit war loan deposit account. Nov. 15. 1917.............................. .................................-................................................... Dec. 15, 1917.................................................................................................................... Jan. 15, 1918.................................................................................................................... 96,081,844 74,541,061 43,212,229 Total............................................. ......................................................................... 213,835,134 Number of depository banks, 288. .. CERTIFICATES OF INDEBTEDNESS. Ian. Feb. Feb. Mar. Apr. Apr. 22, 8, 27. 20, 10, 22, [Issued in anticipation of third Liberty loan.] 1918............................................................................................................................ $17,899,126 1918............................... ........................................ .................................................... 23,516,276 1918............................................................................................................................ 36,224,616 1918............ ............................................................................................................... 39,114,281 1918......................................... ................................................................................... 44,461,836 1918........................................................................................................................... 39,138,754 Total............................................................................................................................... 200,354,889 Number of depository banks, 375, Feb. 8; and 580, Apr. 10. CERTIFICATES OF INDEBTEDNESS. [Issued in anticipation of taxes.] Due June 25, 1918.................................................................................................................... $97,324,184 Due July 15, 1919.................................................................................................................... 14,736,162 Due Mar. 15, 1919.................................................................................................................... 65,363,052 Total............................................................................................................................... 177,423,398 THIRD LIBERTY LOAN. Payment dates May May July Aug. Amount paid by credit war loan deposit account. 1918....................................................................................................... 1........... 1918......................................................................... ,......................................... 1918................. t.................................................................................................. 1918.................................................................................................................... $114,306,519 37,635,209 44,111,982 Total....................................................... .'......................... ..................................... 229,645,680 9, 28, 18, 15, 33,591,970 Number of depository banks, 603. CERTIFICATES OF INDEBTEDNESS. June July July Aug. Sept. Sept. Oct. 25, 9, 23, 6, 3, 17, 1, [Issued in anticipation of fourth Liberty loan.] 1918............... ............................................................................................................. 1918............................................................................................................................ 1918............................................................................................................................ 1918............................................................................................................ ................ 1918............................................................................................................ ................ 1918............................................................................................................................ 1918............................................................................................................................ Total.......................................... Number of depository banks, 721. $73,205,054 65,193,195 54,546,570 60,621,087 60,338,177 62,256,957 55,503,385 431,664,425 REDEPOSIT OF INCOME AND EXCESS-PROFITS TAXES. June 25, 1918......................................................................................................................... $96,494,624 Number of depository banks participating, 225. 37 Schedule 12.—Depository bank division statistics—Continued. FOURTH LIBERTY LOAN PAYMENTS. Oct. 24, 1918.......................................................................................................................... $174,631,079 71,188,268 Nov. 21, 1918........................................................................................................-............... Total............................................................................................................................. 245,819,347 ANTICIPATION OF FIFTH LIBERTY LOAN. $65,597,671 Dec. 5, 1918............................................................................................................................. Number of depository banks, 1,060. COLLATERAL HELD BY CUSTODIANS. Jan. 1, 1918.......................................................................................................................... $139,133,633 Apr. 14, 1918.......................................................................................................................... 149,496,020 July 1, 1918.......................................................................................................................... 237,165,171 Dec. 15, 1918.......................................................................................................................... 177,980,779 Schedule 13.—Classification of Liberty loan subscriptions in 1918. Third Liberty loan classification Fourth Liberty loan classification Illinois: National banks..... ......................... State banks and trust companies.. Private banks.................................. $ 96,394,350 138,886,050 10,977,450 $131,915,650 274,777,500 16,565,800 Total....... ... ......................... 246,257,850 423,258.950 Indiana: National banks..... ............................... State banks and trust companies___ Private banks....................................... . 33.391,400 32,926,050 4,413,400 54,524,350 54.025,100 7,107,850 Total......................................... . 70.730,850 115,657,300 33,330,650 69,869,650 13,959,750 50,164,800 94,483,300 13,199,450 117,160,050 157,847,550 28,470,900 65,338,850 4,154,400 50,812,100 107,454,400 5,946,550 Iowa: National banks..... ......................... State banks and trust companies.. Private banks.................................. Total.................................... Michigan: National banks..... ......................... State banks and trust companies.. Private banks.................................. 97,964,150 164,213,050 Wisconsin: National banks..... ............................. State banks and trust companies..... 35,082,050 39,858,450 51,488,700 55,404,450 106.893,150 Total.................................... Total........................................ 74,940,500 Individuals and corporations.................... 1,825,200 1,339,000 Grand total..................................... 608,878,600 969,209,000 Schedule 14.—Statistics in connection with third Liberty loan. Group Subscriptions ranging from— One........................ Two......... .............. Three..................... Four....................... Five....... ................ $50 to $10,000........................................ $10,050 to $50,000—.......................... $50,050 to $100,000 ............................ $100,050 to $200,000 .. Total......... Number of subscribers Amount 3,476,765 2,061 295 102 92 $468,469,950 56,378,000 26,719,150 16,154,600 41.156,900 3,479,315 608,878,600 38 Schedule 14.—Statistics in connection with third Liberty loan—Continued. Per cent Number of Quota of subscrip Quota of Subscriptions of sub subscribers subscriptions scriptions tions to quota State Cook County. Ill........................... Outside Cook County................... 571,686 423,791 Total, Illinois..................... Indiana.......................... Iowa..................... M ichigan._..................... ... Wisconsin....... ................ '. . 995,477 445,468 444,954 544,346 400,589 1,417,241 404,191 660,942 569,570 427,371 178,980,000 53,770,000 71,050,000 75,600,000 45,600,000 247,626,400 70,822,450 117,211,450 98,033,050 75.185,250 138.70 131.71 164.97 130.07 164,88 2,830,834 3,479,315 425,000,000 608,878,600 143.23 Total................................. 892,190 $126,180,000 $167,503,050 525,051 52,800,000 80,123,350 Number of pieces Denomination $50............................................. $100.................................. $500.......................................... $1,000....................................................... $5,000.__................................... $10,000. . .............................................. Total......................................................................................... 132.62 151.74 Amount 1,405,310 2 402 127 148,771 143,474 5,839 3,498 $120,265,500 140 212,700 74,385,500 143,474,000 29,195,000 34,980,000 4,109,019 *$542,512,700 1 The difference between this figure and the total subscriptions is represented by registered bonds. Schedule 15.—Statistics in connection with fourth Liberty loan. Group Subscriptions ranging from— One......................... Two........................ Three..................... Four....................... Five__ $50 to $10,000.................................................. $10,050 to $50,000 $50,050 to $100,000 .... $100,050 to $200,000................... Number of subscribers Total........ Total........................... $720,786,300 106 008,700 42,172,700 20,791,200 79,450,100 4.300,312 969,209,000 Subscriptions Per cent of sub scriptions to quota $252,300,000 113,100,000 $298,739,350 124,255,300 118.40 109.86 1,866,064 588,194 587,773 821,799 436,482 365,400,000 108,750,000 147,900,000 147,900,000 100,050,000 422.994.650 116,081,100 158,155,400 164,784,200 107.193.650 115.76 106.74 106.93 111.41 107.14 4,300,312 870,000,000 969.209,000 111.40 Cook County, Ill........ ...................... Outside Cook County....................... Total, Illinois........ Indiana........................... Iowa............................. Michigan................................... Wisconsin....................... 4,292,990 6 420 576 144 182 Quota of subscriptions Number of subscriptions State Amount ESTIMATE OF COUPON BONDS REQUIRED. Denomination Number of pieces Amount Fifty dollars.......................................................................................... One hundred dollars___ ......: ...... Five hundred dollars................................ One thousand dollars.......................................................................... Five thousand dollars......... . . Ten thousand dollars..... ................... 3,195,298 2,026,986 229,707 224,382 10,637 6,433 $159,764,900 202,698,600 114,853,500 224,382,000 53,185,000 64,330,000 Total........... .............................................................................. 5,693,443 1 819,214,000 *The difference between this figure and the total subscriptions is represented by registered bonds. 39 Schedule 16.—Total amount and number of subscribers to the fourth Liberty loan in cities with population of 25,000 and over. ILLINOIS City Population Number of subscriptions Amount of subscriptions Aurora....................................................................... Bloomington.-.......................................................... Chicago..................................................................... Danville.................................................................... Decatur.-.................................................................. Elgin......... ................................................................ Evanston.... ..................................................... ........ Joliet........... .............................................................. Moline....................................................................... Oak Park.................................................................. Peoria....... ........................ .-....................................... Rockford................................................................... Rock Island.................... ......................................... Springfield................................................................ 34,204 27.258 *2,497,722 32,261 39,631 28,203 28,591 38,010 27,451 26,654 71.458 55,185 28,926 61,120 10,199 6,591 1,000,711 6,611 £,829 7,553 12,896 18,127 16,704 9,395 31,228 19,325 13,616 13,408 $ 1.998,700 1,539,850 288,211,750 1,700,150 2,637,250 1,636,850 2,344,000 3,147,100 2,552,000 1,672,350 5,423,900 4,673,900 2,622,350 4,851,100 1,175.193 325,011,250 13,073 33,650 28,882 12,582 94,368 10,979 20,092 18,951 $2,101,700 7,028,700 2,918,100 1.524,250 23,811,850 2,015,550 4,259,900 5,230,800 232,577 48,890,850 5,451 19,137 3,890 5,528 23,307 22,321 10,063 16,057 9,789 $1,364,700 3,224,400 1,031,850 1,835,400 4,876,600 7,610.200 2,258,100 3,931,300 2,145,000 115,543 28,277,550 12,488 12,930 209,632 34,955 47,913 3,737 7,023 18,729 11,989 15,390 15,306 15,310 $3,430,200 3,226,900 73,842,050 4,733,350 11,943,050 278,300 4,755,350 2,207,850 2,425,100 2,111,200 2,118,650 4,896.000 405.402 115,968,000 Total........... .................................................. INDIANA East Chicago......... .................................................. Fort Wayne......... .................................................... Gary.................. i...................................................... Hammond.... ............................................................ Indianapolis............................................................. Muncie....... .............................................................. South Bend.............................................................. Terre Haute............................................................. 28,743 76,183 65,000 26,171 271,708 35,085 68,946 66,083 Total............................................................. IOWA. 25,030 37,308 27,386 31,484 48,811 101,598 39,873 57,078 35,559 Burlington___ Cedar Rapids... Clinton______ Council Bluffs.. Davenport....... Des Moines__ Dubuque.......... Sioux City____ Waterloo.......... Total.__ MICHIGAN. Battle Creek._.......................................................... Bay City................................................................... Detroit ___ _______________________ Flint.................................................... ...................... Grand Rapids.......................................................... Hamtramck................................................. ..... ...... Highland Park......................................................... Jackson. „ ...... ........................................................ Kalamazoo— ......................................................... Lansing.... ............................................................... Muskegon................................................................. Saginaw.-.................................................................. 29,480 47,942 571,784 80,000 128,291 25,000 25,000 35,363 48,886 40,498 26,100 55,642 Total........... .................................................. *School census. Chicago. 40 Schedule 16.—Total amount and number of subscribers to the fourth Liberty loan in cities with population of 25,000 and over—Continued. WISCONSIN. City Population Green Bay................................................................. Kenosha....... ......................................................... Madison....... ......................... ................................... Milwaukee....... ............... .-........................ Oshkosh—.............................................................. Racine................................................... Sheboygan....................................................... 29,353 31,576 30,699 436,535 36,065 46,486 28.559 Total................................................. Number of subscriptions Amount of subscriptions 9,146 15,094 13,780 69,047 7,008 19,514 7,151 $1,672,550 3,446,550 3,168,200 34,139,950 2,088,200 3,663,800 1,635,950 140,740 49,815,200 Schedule 17.—Seventh Federal Reserve Liberty Loan Organization. EXECUTIVE COMMITTEE. Chairman, F. O. Wetmore, Chicago. Vice-chairman, C. H. Schweppe, Chicago. Secretary, Eugene M. Stevens, Chicago. H. L. Stuart, Chicago. J. B. McDougal, governor, Federal Reserve Bank, Chicago. W. A. Heath, chairman, Federal Reserve Bank, Chicago. John E. Blunt, Jr., Chicago. Howard W. Fenton, Chicago. W. M. L. Fiske, Chicago. Miss Grace Dixon, Chicago. Arthur W. Reynolds, Chicago. Watkin W. Kneath, Chicago. Solomon A. Smith, Chicago. John Jay Abbott, Chicago. M. A. Traylor, Chicago. E. K. Boisot, Chicago. O. T. Reeves, Chicago. Frank O. Lowden, governor of Illinois, Springfield, Ill. F. W. Merrick, commissioner of banking, Lansing, Mich. Ashton Clemens, Des Moines, Iowa. Henry W. Bennett, Indianapolis, Ind. Fred Vogel, Jr., Milwaukee, Wis. George Woodruff, Joliet, Ill. CAMPAIGN COMMITTEE. Director of campaign, C. H. Schweppe. Assistant director of campaign, James L. Martin. Secretary and treasurer, Frederick Merritt. Director of publicity, B. F. McCutcheon. Director of speakers’-bureau, Henry P. Chandler. Director for women, Miss Grace Dixon. Director of foreign language division, F. J. Streyckmans. Director of sales for Chicago and Cook County, Charles W. Folds. z 41 Director of sales for Illinois, Heman Gifford. Director of sales for Indiana, Will H. Wade. Director of sales for Iowa, C. H. McNider. Director of sales for Michigan, F. R. Fenton. Director of sales for Wisconsin, E. J. Kearney. Chairman finance committee, Howard W. Fenton. Chairman bank committee, John E. Blunt, Jr. Ex-officio, J. B. McDougal, governor Federal Reserve Bank of Chicago. women’s organization. Chairman for women, Miss Grace Dixon, Chicago. Chairman women’s committee for Chicago and Cook County, Mrs. Bertha D. Baur, Chicago. Chairman women's committee for Illinois, Mrs. Howard T. Willson, Springfield. Chairman women’s committee for Indiana, Mrs. F. H. McCulloch, Fort Wayne. Chairman women’s committee for Iowa, Mrs. Wilbur W. Marsh, Waterloo. Chairman women’s committee for Michigan, Mrs. D. D. Ashbaugh, Detroit. Chairman women's committee for Wisconsin, Mrs. John W. Mariner, Mil waukee. Schedule 18.—District committee on capital issues. Chairman, W. A. Heath, Chicago. Vice-chairman, J. B. McDougal, Chicago. Executive committee: Rufus C. Dawes, Chicago. E. D. Hulbert, Chicago. Joy Morton, Chicago. James Simpson, Chicago. Frank O. Wetmore, Chicago. Secretary, Lyman A. Walton. E. J. Buffington, Chicago. Simon Casady, Des Moines Emory W. Clark, Detroit. B. A. Eckhart, Chicago. Louis A. Ferguson, Chicago. S. A. Fletcher, Indianapolis. Oliver C. Fuller, Milwaukee. Chauncey Keep, Chicago. John J. Mitchell, Chicago. John J. O’Brien, Chicago. George M. Reynolds, Chicago. B. E. Sunny, Chicago. E. K. Boisot, Chicago. D. R. McLennan, Chicago. 42 Schedule 19.—Summary of the activities of the district committee on capital issues to Dec. 31, 1918. Num ber Applications— 1. Passed on by Chicago committee only. 101 Amount 81.36 18.64 i 5,094,892 100.00 Disapproved................. Total ........__ * $5,126,892 Per cent $4,145,392 949,500 Approved Amount Number Amount 2. Considered by Chicago, but not acted on by Washing ton for various reasons................................................ 11 $7,306,380 3. Acted on by both Chicago and Washington com mittees........................................................................... 369 475,076,435 1482,382,815 Analyzing items 2 and 3, recommended by Chicago committee for— Amount Per cent Approval....................... $391,246,633 Disapproval 68,860,400 85.03 14.97 2 460,107,033 100.00 Total 4. Acted on by Washington without recommendation from Chicago..... ....... 35 $22,017,500 Total............................................................................................................. 516 509,527,207 Classification of total: Num ber Amount Per cent Municipal__ ______ Bank applications__ 39 334 107 36 $42,638,650 420,446,852 41,799,705 4,632,000 8.35 82.51 8.23 .91 Total_____ ___ 516 509,527,207 100.00 Public utility Industrial ______ This total is divided— Stocks........... .................................................$286,130,902 Bonds....... ..................................................... 115,880,805 Notes............................................................. 107.515,500 5. Acted on by Washington without reference to Chicago committee........... Considered by Chicago committee as to personnel only—properties located in other districts............................................................................... 7. Not considered—applications cover amounts not considered at various times per rulings of Washington committee.............................................. 8. Withdrawn or canceled...................................................... ............................... 9. Not acted on by either Washington or Chicago committees...................... 24 24,814,700 45 37,228,392 25 24 7 2,343,525 12,562,435 1,670,000 Total of all applications originating in Seventh Federal Reserve District..................................................................................................... 641 588,146,259 6. * Discrepancy between these amounts accounted for by difference between face of application and amount passed on. I Discrepancy between these amounts accounted for by difference between face of application and amount passed on. Note.—A great number of applications were modified or abandoned after conferences or corres pondence with the officers of the district committee; therefore, the statement submitted does not completely reflect the work of the committee. No memorandum was kept of these consultations or the amounts involved, but much of the time of the chairman and the secretary was devoted to them. 43 Schedule 20.—Federal Reserve notes of the Federal Reserve Bank of Chicago received from other Federal Reserve Banks for redemption or credit, and notes of other Federal Reserve Banks returned by the Federal Reserve Bank of Chicago for redemption or credit. Received • 1914-15 Boston................... New York. __ _ Philadelphia......... Cleveland............ Richmond. _____ Atlanta.-................ St. Louis... _ ...... Minneapolis__ __ Kansas Citv Dallas.................... San Francisco....... $22,925 77,955 11,995 2,000 265 1,870 41,040 5,970 950 1,065 8,900 1916 1917 Returned 1918 $24,000 $347,800 $2,247,800 140,410 1,760,420 14,071,550 16,970 406,000 3,237,500 17,190 420,040 3,294,050 2,600 128,610 2,765,850 8,795 224,550 2,493,075 49,950 1,050,350 12,486,965 53,380 219,500 4,261,800 2,895 142,150 1,285,100 4,795 128,83 5 1,722,150 9,380 301,010 1,842,315 1914-15 1916 1917 1918 $7,400 $96,500 $218,500 $1,209,500 212,200 1.615.500 3,425,000 10,923,000 11,540 124,000 357.500 1.931.500 51,280 572,000 939.500 6,654,000 54,735 328,000 332,000 1,553,000 66,925 603,000 747.500 2,013,000 38 155 545.500 1,205,000 5,146,000 252795 2.286.500 3,418,000 7,347,000 192,770 1.496.500 2,776,500 8.578.500 148,680 930.500 974,000 1,816,000 40,895 391.500 875,000 4,285,100 Total..... .... 174,935 330,365 5,129,265 49,708,155 1,077,375 8,989,500 15,268,500 51,456,600 Schedule 21.—Federal Reserve Bank notes, Dec. 31, 1918. Denominations Total $1 $2 $5 $10 $20 Total notes received from Comp troller of the Currency_____ $7,884,000 $2,096,000 $5,300,000 $2,623,760 $865,600 $18,769,360 Total notes returned to Comp troller of the Currency for destruction......... ...................... 57,450 7,800 124,650 47,560 6,100 243,560 Total notes in circulation and on hand................ 7,826,550 2,088,200 5,175,350 2,576,200 859,500 18,525,800 Schedule 22.—Federal Reserve notes. Notes outstanding Dec. 31, 1917 Notes issued to bank during 1918 Notes redeemed during 1918 Notes outstanding Dec. 31, 1918 Fives. ......................................... Tens............................................. Twenties...................... .............. Fifties...................................... Hundreds..... .............................. $19,145,050 68,439,270 81,072,760 11,378,350 10,753,100 $59,480,000 89,840,000 124,320,000 19,400,000 10,400,000 $9,174,290 17,591,020 13,847,260 2,340,950 337,000 $69,450,760 140,688,250 191,545,500 28,437,400 20,816,100 Total..... . ........................ 190,788,530 303,440,000 43,290,520 450,938,010 44 Schedule 23.—Transfers bought and sold 1918. January....................................... February .............. March..... . ................................ April..... ...................................... May............................................. June............................................. Julv August—............ ......................... September—................................ October....... ................................ November................................... December Total Sold by wire Bought by wire Sold by draft $254,181,000 257,840,000 255,355,000 253,656,000 157,233,000 189,610,000 208,120,000 76,967,000 59,244,000 76,395,000 47,989,000 53,049,000 $23,000,000 10,220,000 85,690,000 84,275,000 205,215,000 164,677,000 202,096,000 200,671,000 323,119,000 $53,635,000 62,425,000 65,270,000 43,850,000 43,040,000 29,933,000 22,590,000 13,655,000 12,065,000 7,635,000 10,765,000 12,806,000 12,856,000 12,665,000 12,035,000 11,690,000 22,134,000 5,401,000 25,035,000 1,889,639,000 1,298,963,000 377,669,000 120,660,000 Bought by draft $5,000,000 4,000,000 6,100,000 3,750,00(f Schedule 24.—Operation of the Federal Reserve clearing system; daily average number of checks handled monthly and during the calendar year 1918. Items drawn on banks in Federal Reserve city January....................... February..................... March. ...... .............. April _____ .______ May............................. June............................. July August......................... September................... October—.................... November................... December................... 7,072 8,638 9,113 9.119 8,540 9,158 9,961 9,623 10,475 13,318 12,990 14,102 Amount $17,596,000 17,816,000 20,802,000 21,600,000 22,463,000 23,540,000 22,696,000 20,339,000 23,645,000 27,458,000 25,553,000 26,424,000 Items drawn on banks in seventh district outside Federal Reserve city 17,663 20,147 23,343 23,954 23,988 28,215 39,203 40,898 46,284 48,163 49,914 50,570 Items drawn on banks in other districts Amount $3,748,000 4,290,000 5,977,000 5.416,000 6,095,000 7,823,000 8,435,000 8,891,000 10,610,000 11,350,000 8,800,000 7,520,000 1,549 2,714 1,911 2,099 2,167 2,854 4,446 4,086 4,811 5,300 5,610 5,606 Amount $605,000 665,000 1,233.000 776,000 750,000 812,000 1,038,000 1,090,000 1,150,000 1,244,000 1,278,000 1,070,000 976,000 3,596 34,362 7,413,000 Daily average, 1918 10,176 22,494,000 Total, 1918............. 3,047,109 6,748,151,000 10,289,902 2,225,581,000 1,073,410 292,992,000 511,438 187,450,000 4,362,436 987,821,000 Total, 1917............. 1,807,728 3,985,878.000 616,111,000 778,959 873,758,000 Total, 1916............. 950,596 1,549,148,000 2,722,827 Total, exclusive of item drawn on T reasurer United States January .... February .. March._ ... April........... May____ _ June.------July............ August ..... September October..... November December .. 26,284 31,499 34,366 35,173 34,694 40,227 53,610 54,608 61,570 66,781 68,514 70,279 Amount $21,949,000 22,771,000 28,012,000 27,792,000 29,310,000 32,175,000 32,169,000 30,319,000 35,405,000 40,052,000 35,632,000 35,014.000 Items handled by both parent bank and branch 784 164 179 485 280 249 269 362 335 325 Daily average, 30,833,000 286 1918....... 48,134 Total,1918 14,410,421 9,266,724,000 76,476 Total,1917 6,681,602 5,161,149,000 Total,1916 4,452,382 3,039,017,000 Num ber mem ber banks in dis trict Nonmem ber banks on par list 1,109 1,128 1,137 1,151 1,156 1.164 1,174 1,192 1,253 1,285 1,321 1,326 2,235 2,229 2,223 2,260 2,284 2,278 2,296 2,344 2,409 2,337 2,274 2,383 3,766,000 9,363 370,000 105,000,000 2,801,637 1,128,269,000 1,332 850,764 202,461,000 1,103 74,740,000 992 713,003 2,392 2,240 1,265 Amount $575,000 315,000 422,000 1,525,000 306,000 259,000 215,000 356,000 242,000 233,000 Items drawn on Treas urer United States 5,896 6,412 5,257 7,523 7,840 7.782 9,616 8,367 12,269 14,034 11,486 15,879 Amount $1,987,000 1,678,000 2,041,000 2,301,000 2,874,000 3,669,000 4,109,000 4,463,000 5,164,000 5,514,000 5,848,000 5,546,000 45 Schedule 25.—Clearing operations, Detroit branch. Number Amount Drawn on banks located in Detroit: Mar. 18 to Apr. 15......... ................................................ Apr. 16 to May 15.......................................................... May 16 to June 15......... ................................................ June 16 to July 15.......................................................... July 16 to Aug. 15.......................................................... Aug. 16 to Sept. 15......................................................... Sept. 16 to Oct. 15....... .................................................. Oct. 16 to Nov. 15.............................. ........................... Nov. 16 to 30................................................................... Dec. 1 to 31..................................................................... 24,700 28,054 36,166 52,806 50,700 62,374 63,232 88,738 40,508 83,837 $27,080,400 35,198,445 42,957,938 56,570,452 44,939,662 46,139,704 49,726,622 55,617,941 28,547,394 59,899,151 General average per month............................... 55,906 47,018,717 Average daily number of items handled on Detroit: April.................................. ;.............................................. May................................................................................... June................................................................................... July................................................................................... August—............................................................................ September—...................................................................... October............ ................................................................ November....................................................... ................. December........... .............................................................. 950 1,079 1,391 2,031 1,950 1,976 2,399 3.413 3,117 1,042,000 1,354,000 1,652,000 2,176,000 1,728,000 1,797,000 1,775,000 2,139,000 2,196,000 Drawn on the Treasurer of the United States: Sept. 23 to Oct. 15....... .................................................. Oct. 16 to Nov. 15..... ....................... ............................ Nov. 16 to 30................................................................... Dec. 1 to 31......... ............................................................ 20,325 25,896 16,146 39,394 21,430,655 30,897,528 18,795,302 • 44,436,710 General average per month............................... 29.074 33,071.198 Schedule 26.—Gold settlement fund operations, Jan. 1, 1918, to Dec. 31, 1918. Bank Amount received in settlement of accounts due from other Federal Re serve Banks Amount paid in settlement of amounts Gain through due to other settlements Federal Re serve Banks Loss through settle ments Transfers Debits Credits Boston................. $337,860,000 $249,539,000 $88,321,000 $7,000,000 $694,000 438,000,000 1,014,000.000 New York........... 2,779,820,000 1,650,226,000 l,i 29,594,000 6,000,000 13,000,000 Philadelphia___ 385,846,000 361,268,000 24,578,000 Cleveland..... ...... 621,410,000 850,809,000 229,399,000 18,000,000 14,100,000 Richmond.......... 111,850,000 105,050,000 6,800,000 58,955.000 Atlanta....... ........ 116,277,000 118,187,000 1,910,000 74,054,000 8,960,000 St. I .ouis .... 788,411,000 709,856,000 78,555,000 117,058,000 6,000,000 Minneapolis____ 465,234,000 582,202,000 4,000,000 304,236,000 22,000,000 Kansas City___ 462.114,000 766,350,000 9,671,000 23,500,000 Dallas.................. 115,333,000 95,588,000 19,745,000 45,297,000 5,000,000 San Francisco..... 219,806,000 265,103,000 Total....... 6,403,961,000 5,754,268,000 1,347,859,000 697,900,000 594,685,000 1,128,249,000 533,564,000 Excess......... ........ 649,693,000 Gain through settlement.......................................................... .............................................. $649,693,000 Net loss through transfers........... ........................................................................................... 533,564,000 Net gain through transfers and settlement.................................. 1........................... 116,129,000 46 Supplemental Schedule.—Seventh Federal Reserve District Banking Resources as of December 31, 1918, with classification of Member and Non-member Banks as of February 18, 1919. RESOURCES OF MEMBERS, FEDERAL RESERVE BANK OF CHICAGO National Cook County— Chicago............................. Outside Chicago. . ............. $ 937.676,277 8,643,049 Percent Members Resources to Total Total State State All $ 667,892,958 12,521,074 $1,605,569,235 21,164,123 70.93 34.05 85.23 45.61 $ 680,414,032 84.28 Total Cook County....... $ 946,319,326 Illinois— Outside Cook County $ 316,459,846 $1,626,733,358 69.55 $ 34,925,226 $ 351,425,072 11.79 52.43 Total Illinois................. Indiana........... ........................... Iowa........................................... Michigan......................... Wisconsin....... „......................... $1,262,779,172 299,340,071 367,751,558 274,579,166 267,230,475 $ 715,379,258 32,955,035 86,924,173 498,800,628 82,084,645 $1,978,158,430 332,295,106 454,675,731 773,379.794 349,315,120 56.12 9.70 14.12 68.39 26 29 76.06 49.30 43.38 75.18 60 28 Total....... ........................ $2,471,680,442 $1,416,143,739 $3,887,824,181 43..29 65..55 RESOURCES OF NON-MEMBER BANKS State Private Cook County— Chicago............................................................... 5 273,655,14? $ Outside Chicago................................................. 24,248,849 Cook County Total..................................... $ 297,903,994 Illinois— Outside Cook County. $ 261,312,963 Total Illinois____ Indiana.............................. Iowa._....................... ......... Michigan............................ Wisconsin.......................... Total...................... $ Total 278,226,579 25,236,099 4,571,434 987,250 5,558,684 $ 303,462,678 $ 57,616,795 $ 318,929,758 $ 559,216,957 $ 306.776.399 528,805,035 230,596,347 230.146.399 .... 63,175,479 35,017,558 64,625,894 24,697,635 622,392,436 341,793.957 593,430,929 255 293,982 230,146,399 $1,855,541,137 $ 187,516,566 $2,043,057,703 CONSOLIDATED STATEMENT—MEMBER AND NON-MEMBER BANKS National Cook County— Chicago..................... $ 937,676,277 8,643.049 Outside Chicago___ Cook County Total_____ ___ $ 946,319,326 Illinois— Outside Cook County....... .......... 316,459,846 Total Illinois____ $1,262,779,172 Indiana......................... 299,340,071 Iowa.............................. 367,751,558 Michigan....................... 274,579,166 Wisconsin...................... 267,230,475 Total..................... $2,471,680,442 State Private Total Percent of Total $ 941,548,103 36,769,923 $ 4,571,434 987,250 $1,883,795,814 46,400,222 31.77 .78 $ 978,318,026 $ 5,558,684 $1,930,196,036 32.55 57,616,795 670,354,830 11.30 $1,274,596,215 339,731,434 615,729,208 729,396,975 312.231,044 $ 63,175,479 35,017,558 64,625,894 24,697,635 $2,600,550,866 674,089,063 1,048,106,660 1,028,673,776 579,461,519 56.15 11.37 17.67 17.34 9.77 $3,271,684,876 $ 187,516.566 $5,930,881,884 100.00 296,278,189 INDEX Page Acceptances— Bankers’...................................................................................................................................... 6 Development of open market.................................................................................................. 6 Permission to accept up to100 per cent................................................................................. 7 Purchase of................................................................................................................................. 7 Trade........................................................................................................................................... 5 Assets and liabilities................................................................................................................... 1-2, 26, 27 Banking conditions............................................................................................................................ 1-3 Banking quarters........................................ 21 Branch bank. Detroit........................................................................................................................ 16 Business conditions............................................................................................................................ 3-4 Capital issues committee.............................................................................................................. 14—15. 42 Certificates of indebtedness.............................................................................................................. 10, 35 Check clearing and collection............................................................................................... 17-20, 43-44 Deposits.............................................................................................................................................. 3 Government................................................................................................................................ 2-3 Net.............................................................................................................................................. 24 Chart................................................................................................................................... 25 Of Treasury funds with banks................................................................................................ 11, 37 Detroit branch................................................................................................................................... 16 Balance sheet.............................................................................................................................. 27 Officers and directors.......................................................................................................... opposite 1 Directors of Bank and Branch.................................................................................................. opposite 1 Discount operations.......................................................................................................................... 4-5 Discount rates................................................................................................ _.................................. 4, 28 Earning assets......................................................................................................................................... 22 Movement of, chart...................................................................................................................... 23 Earnings.............................................................................................................................................. 2, 27 Examinations, department of.......................................................................................................... 8 Expenses............................................................................................................................................. 2,27 Federal Reserve bank notes............................................................................................................. 15.43 Federal Reserve note liabilities....................................................................................................... 24 Chart........................................................................................................................................... 25 Federal Reserve notes................................................................................................................. 15, 24, 44 Chart........................................................................................................................................... 25 Fiduciary powers granted...................................... 8, 35 Financial results of operation.......................................................................................................... 2 Foreign accounts............................................................................................................................. 20 Gold settlement fund operations.......................................................................................................20, 45 Government war financing............................................................................................................... 1.9-14 Investment operations...................................................................................................................... 5 Leased-wire system............................................................................................................................. 18, 19 Liberty Loan— Campaign................................................................................................................................... 11-14 Organization.......................................................................................................................... 12, 40-41 Quota............................ 9-10 Subscriptions..........................................................................................................................1, 37-40 Liquidation of national banks......................................................................................................... 29 Member Advisory Council......................................................................................................... opposite 1 Member banks Authorized to accept up to 100 per cent............................................................................... 7, 28 New............................................................................................................................................. 7, 28 State banks................................................................................................................................ 29-34 Money rates....................................................................................................................................... 28 National bank members, new.......................................................................................................... 28 INDEX—Continued Page Officers of Bank and Branch...................................................................................................... opposite 1 Organization of bank.................... 16-17 Position of commercial banks.......................................................................................................... 15 Profit and loss statement.................................................................................................................. 27 Quarters of bank................................................................................................................................ 21 Reserve position................................................................................................................................. 7 Reserves— Cash............................................................................................................................................ 7, 24 Movement of.............................................................................................................................. 7, 24 Chart................................................................................................................................... 25 Of State banks........................................................................................................................... 9 Statistical Tables— Movement of earning assets.................................................................................................... 22 Movement of cash reserves...................................................................................................... 24 Movement of Federal Reserve note liabilities...................................................................... 24 Movement of net deposits............................. 24 Movement of Reserve percentage.................. 24 Balance sheet— Federal Reserve Bank of Chicago.......................... 26 Detroit branch....................................................................................................................... 27 Profit and loss statement......................................................................................................... 27 Discount rates. Federal Reserve Bank of Chicago.............................................................. 28 Money rates (open market) Chicago..................................................................................... 28 Member banks authorized to accept...................................................................................... 28 New National Bank members................................................................................................. 29 National Banks liquidated....................................................................................................... 29 Fiduciary powers wanted......................................................................................................... 35 Liberty Loan Certificates.............................................................................................................................. 35-37 Third Loan............................................................................................................................. 37-38 Fourth Loan........................................................................................................................... 38 Subscriptions by states-cities.............................................................................................. 39-40 Capital issues..............:............................................................................................................. 42 Inter district movement of Federal Reserve notes.............................................................. 43 Denominations of Federal Reserve notes.......... ................................................. 43 Federal Reserve Bank notes................................................................................................ 43 Clearing system......................................................................................................................... 44 Detroit Branch...................................................................................................................... 45 Gold settlement fund operations............................................................................................ 45 Bank resources of district...................................................................... 46 Member banks........................................................................................................................ 46 Non-member banks.................................................................. 46 State bank members....................................................................................................................... 7, 29-34 Tel egraphic transfersystem............................................................................................................. 18-19 Transfers bought and sold................................................................................................................ 44 War Finance Corporation................................................................................................................ 14 War-savings stamps.......................................................................................................................... 13
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