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Federal Reserve Bank of Cleveland 1919 FIFTH ANNUAL REPORT TO THE FEDERAL RESERVE ANNUAL REPORT of the Federal Reserve Agent of the Fourth Federal Reserve District to the Federal Reserve Board Covering Operations for the Calendar Year i 9 i 9 FEDERAL RESERVE BANK OF CLEVELAND LETTER OF TRANSMITTAL January y, 1920. SIR: 1 have the honor to transmit to you herewith the fifth annual report of the Federal Reserve Bank of Cleveland covering the year 1919. Respectfully, D. C. WILLS, Chairman and Federal Reserve Agent. HON. VV. P. G. HARDING, Governor, Federal Reserve Board, Washington, D. C. DIRECTORS AND OFFICERS OF THE FEDERAL RESERVE BANK OF CLEVELAND FOR 1920 DIRECTORS CLASS A CLASS B ROBERT WARDROP, Pittsburgh, Pa. THOMAS A. COMBS, Lexington. Ky. CHESS LAMBERTOX, Franklin, Pa. O. N. SAMS, Hillsboro, Ohio. R. P. WRIGHT, Erie, Pa. JOHN STAMBAUGH, Youngstown, O. CLASS C I). C. WILLS, Cleveland. Ohio. L. B. WILLIAMS, Cleveland Ohio. H. P. WOLFE, Columbus, Ohio. OFFICERS D. C. WILLS, Chairman of the Board E. R. FANCHER, Governor and Federal Reserve Agent M. J. FLEMING, Assistant to the Govc L. B. WILLIAMS, Deputy Chairman . F. J. ZURLIXDEX, Assistant to the GovJ. C. NEVIN, Secretary and Assistant ernor. Federal Reserve Agent. H . G. DAVIS, Cashier F. V. GRAYSOX, Auditor W. F. TAYLOR, Assistant Cashier H. F. STRATER, Assistant Cashier C. W. ARNOLD, Assistant Cashier SQUIRE, SANDERS & DEMPSEY, Counse1 Q ' WAGNER, Assistant Cashier R G. A. STEPHENSON, Assistant Cashier D. B. CLOUSER, Assistant Cashier PITTSBURGH BRANCH DIRECTORS CHAS. W. BROWN, Pittsburgh, Pa. R. B. MELLON, Pittsburgh, Pa. JAMES D. CALLERY, Pittsburgh, Pa. HARRISON NESBIT, Pittsburgh, Pa. GEORGE DECAMP, Pittsburgh, Pa. OFFICERS GEORGE DECAMP, Manager THOMAS C. GRIGGS, Cashier T. M. JONES, Assistant Federal P. A. BROWN, Assistant Cashier. Reserve Agent CINCINNATI BRANCH DIRECTORS G. D. CRABBS, Cincinnati, Ohio L. W. MANNING, Cincinnati, Ohio. JUDSON HARMON, Cincinnati, Ohio W. S. ROWE, Cincinnati, Ohio CHAS. A. HINSCH, Cincinnati, Ohio OFFICERS L. W. MANNING, Manager B. J. LAZAR, Cashier JOHN P. H. BREWSTER, Assistant Cashier P. J. FAULKNER, Assistant Federal Reserve Agent FIFTH ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF CLEVELAND RESULTS OF OPERATION Gross earnings of the Federal Reserve Bank of Cleveland during the year 1919 have amounted to $7,801,000, or slightly in excess of $150,000 a week, and approximately 49 per cent in excess of gross earnings for the previous year. The expense of operation, including expense of branches, this district's proportion of Federal Reserve Board expense, cost of Federal Reserve currency, and all items of equipment (which have been charged uniformly to current expense) has been $1,351,000 or approximately 36 per cent greater than last year. The regular dividends were declared and paid during the year, and after setting aside a reserve sufficient to cover all depreciation of assets, the sum of $5,537,000 was transferred to surplus account, as provided in the Act. The addition of this sum to surplus account makes a total of $9,089,000, or 47 per cent of our subscribed capital. Schedule 1, appended hereto, shows the balance sheet for December 31, 1919, with comparative figures for December 31, 1918. Schedule 2 shows the principal charges and credits to profit and loss account for 1919, as compared with 1918. Schedule 3 shows the gross earnings classified according to principal sources of revenue by months, together with the expenses and net earnings, and the same data appears in graphic form in chart 1. Schedule 4 shows the daily average of earning assets divided into the principal sources of revenue, with the total earnings and the average rate on each principal class of investments, and also the rate of gross and net earnings to daily average capital for the years 1919 and 1918 respectively. Schedule 5 shows the total volume of loans, discounts, and investments, divided into principal classifications, for the year 1919 as compared with 1918. DISCOUNT OPERATIONS With the exception of the last two months of the year, we maintained a very good reserve position despite the fact that we were called upon for loans and rediscounts to a greater amount than ever before. The total volume of loans and rediscounts far surpassed the volume for the year 1918. This is accounted for partly by the flotation of the Victory Libery Loan in the early part of the year— we were lending on five issues of bonds as well as the certificates of indebtedness periodically issued. It was necessary for the banks to make loans to building and real estate interests whose operations had been strenuously curtailed during the war. Other demands from Commerce and Industry also arose in the course of transition from a war to a peace basis. The number of approved applications was 12,182 as against 5,714 the previous year. The number of banks accommodated was 409, as against 320 for 1918. The total of loans and rediscounts was $3,125,856,369.10, as against $1,386,000,000 in 1918. Of this amount $2,774,571,475 was member bank collateral notes secured by United States Government securities; and $99,402,389.20 was rediscounts of notes to member banks, secured by United States Government securities—a total of $2,873,440,114.20, in comparison with $252,416,254.90 loans on, and rediscounts of, commercial, industrial and agricultural paper. Up to November 10, 1919, when a change in rates went into effect (see Schedule 31), it was more advantageous for banks to get their accommodation on paper secured by United States Government securities, and the increase in commercial paper rediscounts from November 10 to the close of the year was accordingly very marked. Approximately $14,100,000 of trade acceptances was rediscounted for our member banks during the year and the amount, without doubt, would have far surpassed this figure but for the preferential rates that obtained on war loan paper during the first ten months of the year. The trade acceptance is gaining great headway throughout the country and especially in this district. Every day brings new users to our attention. The organization in Cleveland of a local council of the American Acceptance Council has just been announced, and other councils are in process of development in other large centers, which should do much for the better development of the trade acceptance system. Schedule 6A shows loans and rediscounts for member banks classified by states. Schedule 6B shows distribution by classes of paper. These schedules will show startling totals compared with the totals for 1918. Schedule 7 is a comparison of various classes of rediscounts and loans for the years 1918 and 1919. It showTs that rediscounts of commercial, industrial and agricultural paper and trade acceptances fell off, while the volume of paper secured by United States Government securities increased tremendously. Schedule 8 shows the comparison of the amounts of loans and rediscounts granted state member banks during the years 1918 and 1919. It shows that our state member banks used the rediscount and loan facilities freely during 1919 and to a greater extent in proportion to the increased membership than in the year 1918. Schedule 9 shows the comparison of rediscounts for other Federal Reserve banks during the years 1918 and 1919. Because of our splendid reserve position in the first ten months of 1919, other Federal Reserve banks, with special conditions in their districts, availed themselves of the rediscount facilities permitted between Federal Reserve banks, by rediscounting paper with us to a greater extent than ever before. Schedule 10 is a comparison of the amounts of acceptances purchased in the open market and acquired from other Federal Reserve banks during the years 1918 and 1919. This schedule shows a very large increase over the transactions of a similar character the previous year, and fully demonstrates that the bankers' acceptance is being used to a greater extent than ever before. It is interesting to note that during the year six additional banks have been granted authority to accept up to 100 per cent of their capital and surplus. Schedule 11 is a comparison of the United States Government securities purchased during 1918 and 1919. This schedule shows purchases during the year 1919 of a very considerable volume of two per cent certificates of indebtedness. Of the total amount shown $23,299,000 represents the special two per cent certificates against which were issued the Federal Reserve Bank Notes in lieu of the Silver Certificates which were withdrawn from circulation. The balance of these certificates represents loans to the United Staters Government for one and two day periods at times when the various issues of certificates were passing through the process of redemption. Schedule 12 is a comparison of the daily average of earning assets for the years 1918 and 1919. Schedule 13 shows comparison of daily average of earning assets by months for the years 1918 and 1919. Schedule 14 shows comparison of total earnings by months for the years 1918 and 1919. Schedule 15 shows comparison of average rate per annum of earnings by months for 1918 and 1919. RESERVE POSITION During the first ten months of 1919 the reserve position of this bank was strong and constant, running between the 55 per cent and 65 per cent levels, and with a total showing of 8229,017,300 in rediscounted paper for other Federal Reserve Banks. This stabilized position was due to the absence of seasonal demands by reason of diversified manufacturing and agricultural interests. This condition eliminates the peaks and dips to which some districts are subjected for crop-moving purposes, such as cotton and wheat. While it is not generally known, the agricultural wealth of this district will compare well with other parts of the country. Commencing November 1 the reserve ratio started downward. It was quite natural that the year-end demands should greatly increase credit requirements, and it would be a pleasing premise to believe that this legitimate demand was the only cause for the downward course of the reserve. A careful analysis, however, would show that the cause was greatly aggravated by needless speculation and credit inflation. MOVEMENT OF MEMBERSHIP Eight National banks were organized during the year and ten withdrew from the System. Of these latter, three were merged with other National banks; two were merged with State institutions; two were consolidated forming another National bank; one liquidated to form a State bank; one went into the hands of a Receiver and another into voluntary liquidation. Of the new National banks organised, one was the result of the consolidation of two other banks, as above mentioned. Thirty-three State banks and trust companies became members of the System during the year. There were two withdrawals of State bank members, one—a trust company—was merged with another State institution, and the other surrendered its membership. The final result in membership was a loss of two National banks and a gain of thirty-one State bank members, or a net gain of twenty-nine. The names of the institutions, together with a tabular statement of the changes in membership, appear in Schedule 16. The total number of members on December 31 was 843. A law passed at the last session of the West Virginia legislature by means of which eligible banks in that state may enjoy the benefits and privileges of membership became operative last July, and as a result we have added to our member bank list three West Virginia banks having aggregate resources of $9,552,000. With the signing of the armistice the patriotic call to eligible State institutions to join the Federal Reserve System was seemingly at an end, but the great burden placed on the United States in the readjustment and reconstruction of the world's finances has impressed these institutions with the advantages which may readily be seen can be best fulfilled through membership, as it is evident to them that if the Federal Reserve System is to be further strengthened, it must be done through the accession of State bank members. The Federal Reserve Bank of Cleveland has alwrays felt that the best means of creating interest in membership is through personal contact. This was carried on during the forepart of the year by our force of field agents. After the flotation of the Victory Liberty Loan this force was very considerably reduced, and, in a great number of cases, personal contact was developed by inviting a number of officers of eligible institutions to visit the Federal Reserve Bank of Cleveland, at which times the requirements and benefits of membership were discussed. There has also been carried on through the mails an organized campaign for the purpose of placing before eligible institutions the salient points in favor of membership. RELATIONS WITH NATIONAL BANK MEMBERS On account of the carrying of Government securities for customers and the great need for extended credit by reason of high prices and increased business activity, rediscount transactions have greatly increased over all former records. Naturally, the large part of these transactions have been for the account of national banks, whose number exceeds that of State bank members. Of the total volume of rediscounts about 69 per cent was for the use of national banks. The full effect of the additional powers granted in the amendment to Section 11-k of the Federal Reserve Act, approved September 26, 1918, was not immediately appreciated by the National banks, and as a result few applications were received during the latter part of last year. However, during this year an increased number have realized the opportunity for increased business. In the State of Ohio applications were further stimulated by the enactment of the new state banking law, which gave to trust companies the right to exercise general fiduciary powers as in other states. As the Federal Reserve Act grants only such powers as are not in contravention of state or local law, the enactment of the above law made it much more desirable for Ohio national banks to apply for fiduciary powers. In this district there were 51 national banks granted fiduciary powers, distributed by states as follows: Kentucky, 3; Pennsylvania, 16; Ohio, 31; and West Virginia, 1. A list which shows the powers granted in each case may be seen in Schedule 17. As a result of war financing the national banks of the district were brought into much closer contact with the Federal Reserve bank. The sales of certificates, the placing of the Liberty Loan and other matters incident to the war financing, all tended to cement and strengthen this relationship. The Federal Reserve Bank of Cleveland has always felt that it owed to member banks the best possible service. Advantage has been taken of opportunities created in our dealings with members to show our desire to be of real assistance. Recognizing the high value placed upon membership by our member banks, a series of advertisements concerning association with the Federal Reserve System was prepared for publication, and distributed to member banks on request. In the preparation of these advertisements, local conditions were kept in mind and each series made to fit individual needs so far as possible. Careful records were kept of all advertisements sent out, so that duplications were avoided in any given community. That this service is much appreciated by our members is demonstrated by the numerous requests received, and expressions of its value from banks which have made use of it. A semi-monthly bulletin, issued by our library, also aims to give service to our member banks, by listing leading articles in current periodicals on banking and financial topics. The librarian is also ready to make any special investigations that may be asked for, and several banks have already availed themselves of this service since the Bulletin was first issued in September of this year. RELATIONS WITH STATE BANKS AND TRUST COMPANIES As in the case of National banks, the Government financing, high prices and increased business activity made necessary additional rediscounting and, as a result, their discount operations amounted to $957,000,000, or approximately 31 per cent of the total. While a large percentage of Government securities was used for these loans, yet it is believed that in the later months of the year a large part of the rediscounts was for business requirements and commercial paper would have been used in their stead if these securities were not more readily available. Ninety-seven State banks are now members of the Federal Reserve System in this District. These institutions represent resources of $784,636,000. As a result of their membership many of them have extended the scope of their business and are actively engaged in commercial banking. It is worthy of note that, as a class, State bank members make more use of the service which the Federal Reserve Bank offers than do national bank members. This is accounted for by the close study of the System which the officers make before joining, and in consequence a greater knowledge of the facilities it affords. An encouraging feature is the expression, wrhich is given by those who have been members long enough to have made a trial of the merits of the System, of their appreciation and their expressed view that membership has been of value to them in many ways that were not anticipated on joining. It is also noted that the more progressive non-member eligible banks are much more favorably disposed towards the System and generally express themselves to the effect that, eventually, they intend to join, applications being withheld for a convenient season. During the year arrangements have been completed with the Banking Departments of all states covered by this District to cooperate in the examination of State bank members. In anticipation of this a staff of examiners was secured, with Mr. Wm. H. Fletcher as Manager of Department of Examination. The advantage in joining in these examinations was primarily to instruct the member banks in a fuller use of the services offered by the System. It was not the intention to in any way conflict with or interfere with the State Department's examinations which, in this District, are of a high grade and very satisfactory. Undoubtedly, this contact through the examiner will be of mutual benefit to the bank examined and the Federal Reserve Bank of Cleveland and also be of assistance to the State Department. The department now consists of the Manager and three assistants. These will be added to as the work develops. 10 FISCAL AGENCY OPERATIONS A tabular record of all important fiscal operations may be found in Schedules 18 to 24. The successful flotation of the Victory Liberty Loan and the sale of Treasury Department Certificates were the outstanding features of the year's work. It is of interest to note, in connection with certificate sales, that for all issues for which this bank was assigned a quota, the subscriptions were 110 per cent of the total of quotas. Member national banks alone subscribed for an average of about 55 per cent of all certificate issues and Victory Notes. Schedule 18 covers this point in detail. Schedule 18 analyzes subscriptions to loan issues of Treasury Certificates, and shows that about 70 per cent of incorporated banks subscribed for the various series of these issues. Schedule 19 is an analysis of subscriptions to the Victory Loan, and shows that about 99 per cent of all incorporated banks in the district subscribed for Victory Liberty Loan Notes. Schedule 20 analyzes subscriptions to tax issues of Treasury Certificates, showing that over 55 per cent of all national banks and nearly 40 per cent of trust companies were subscribers to these various issues. The subscriptions to War Finance Corporation 5 per cent Gold Bonds are tabulated and appear in the report as Schedule 21. The operations of the interchange and conversion departments also appear in Schedule 21. Tabulated statements of third and fourth installments of payments to the Fourth Liberty Loan are appended to this report as Schedule 22. The report of operations of the depositaries department shows interest collected in the sum of $1,276,000, or approximately 88 per cent of all fiscal agency expense. The largest aggregate deposit in depositary banks during the year was $180,000,000 on June 9, and the smallest was $18,301,000 on December 1. Schedule 23 shows operations of this department in detail. War savings certificates, war savings and thrift stamp sales for the year are shown in Schedule 24. A decided reduction has been made in the force of thefiscalagency department as the result of the completion of a successful flotation of all Liberty and Victory Bond issues. FEDERAL RESERVE NOTES There was little demand for Federal Reserve Notes during the period following the signing of the armistice, until the industrial skies cleared in the spring of 1919 and the resumption of commercial activity necessitated additional issues of currency. From December 1918, to June 1919, there were issued here no new notes of the twenty-dollar denomination. As business conditions returned 11 more nearly to normal the demand for notes has increased, although the amount outstanding is but $17,000,000 in excess of note liability one year ago. Appended Schedule 25 reviews the Federal Reserve Note situation for the year 1919. FEDERAL RESERVE BANK NOTES ISSUED The circulation of Federal Reserve Bank Notes has been continued and more than doubled in volume during the current year. Schedule 26 shows that while the circulation has increased in this proportion, it is represented entirely by the denominations of $1 and $2 bills, while the $5 denomination indicates a reduction • from the previous year. This is accounted for by the continued and insistent demand in this District for small bills, which could not be fully supplied by Governmental issues. COMPARATIVE STATEMENT OF CONDITION OF MEMBER BANKS Schedule 27 shows a comparison of resources and liabilities of member banks on November 17, 1919, and December 31, 1918. While the increase in total resources, as shown in the table, is due in part to the admission of new banks to membership, a comparison of figures for a like number of banks on the dates mentioned shows that the member banks generally have enjoyed unusual prosperity during the past year as a result of operations incident to war financing and the subsequent transition to a peace basis. The increase in member banks' obligations is the result of heavy demands for funds in the resumption of various industries curtailed during the war. POLICY TO BE PURSUED IN RESTORING LIQUIDITY OF BANKS To enable the member banks to carry loans made to subscribers to the Fourth Liberty Loan and to subscribers to the Victory Loan, the liberal loaning policy which prevailed through 1918 was continued without an increase in rates for Government secured paper until November 10, 1919. It was the judgment of our Board of Directors that as the Government's requirements had been substantially provided for, the time had arrived when the differential rate between Government secured paper and commercial loans should be removed. Higher rates at the Federal Reserve Bank would naturally mean naming of higher rates to the customers by member banks, which should bring about a gradual liquidation of loans secured by Government paper, and thereby gradually correct the inflated credit situation brought about by the exigencies of the war. It is appreciated that the industrial activity which has prevailed and is prevailing throughout the Fourth Federal Reserve District, 12 coupled with high costs of materials and commodities, makes for heavy demands for credit upon our member banks. It will be the policy of this bank to assist the demand of legitimate business in every way consistent with conservative banking methods. It is, however, incumbent upon the member banks to use discrimination in extending credit. While legitimate industry should be helped and encouraged, loans for non-productive purposes should be discouraged to the point of being refused. OPERATIONS OF FEDERAL RESERVE BANK BRANCHES IN CINCINNATI AND PITTSBURGH Facilities afforded through the operations of our branches in Cincinnati and Pittsburgh have been taken advantage of to a very large extent by member banks located within their respective branch territories, and have been the means of improving markedly the confidence of member banks in those sections toward the Federal Reserve System. The check collection system has been used to such an extent, especially in the Pittsburgh territory, that the number of items handled by the Pittsburgh Branch has shown a very marked increase over 1918. Cincinnati has also shown a very large increase in the number of items handled during 1919. Transit and clearing operations of the branches are shown in Schedule 28. Money transactions have been very heavy at our branches, and the banks have repeatedly expressed their gratification over the facilities afforded by the branch banks. The books covering the accounts of the banks in the branch territories are, of course, carried at the main office, all entries being made by means of daily transcripts and private telegraph connections. Discount operations in the branch cities have been very large during the past year. •*» While the books covering Fiscal Agency operations are located at the main office, our branches are permitted to handle all Fiscal Agency operations with the exception of transactions by mail. There would not be any particular advantage to our member banks in permitting our branches to handle Fiscal Agency matters by mail as our district is so compact that mail addressed to the main office would reach it as quickly as mail addressed to either of the branch cities. OPERATIONS OF MONEY DEPARTMENT Schedule 29 shows that there has been delivered or shipped to members in this district, currency amounting to $358,737,280.41, IS and to non-member banks $3,386,069.48, or total shipments amounting to $362,123,349.89. The receipts of currency from member banks during 1919 totalled $377,635,253.70 and from non-member banks $5,660,757.79,or total receipts from the above sources amounting to $383,296,011.49. The above figures represent only a part of the tellers' activities, while disbursements of all kinds for the three offices for the year 1919 amounted to $628,531,886.97, and receipts of all kinds amounted to $605j560,435.57. CLEARING AND COLLECTION OPERATIONS On January 1, 1919 there were 415 banks out of a total of 1928 in the district whose checks we were unable to collect at par. During the year substantial progress was made in adding banks to the par list, until on December 1 there remained only seven banks, all located in our part of Kentucky, whose names did not appear on the par list. With the close of the year arrangements were made for the collection of checks on these banks, so that we are now able to collect checks drawn on every bank in the Fourth Federal Reserve District at par. In a very few cases it has been necessary to collect for a time through the American Railway Express Company or through private agents established in towns where banks could not be persuaded to voluntarily remit at par. Usually a very short experience with this method of collection has resulted in a voluntary agreement to remit without exchange. The addition of 415 banks to the par list during the year was very gratifying. Our member banks are now able to collect checks on all banks in the First, Second, Third, Fourth, Tenth and Eleventh Federal Reserve Districts. Out of a total of 29,586 banks in the United States 4,015 do not appear in the par list issued by the Federal Reserve Board, and this number is rapidly decreasing. PAR LIST: CHECK COLLECTIONS AND CLEARINGS: With a steady increase in the par list the check collection system has become more useful to member banks, and there has been a steady increase in the average number of items handled daily. This average .has increased from 75,202 in January 1919, to 123,983 in December. The total average value of the items handled daily has increased from approximately $39,000,000 in January to approximately $49,000,000 in December. The increase in the number of items handled daily at the main office in Cleveland and the branch offices in Cincinnati and Pittsburgh is shown in Schedule 28A. Schedule 28B shows the exchanges with clearing houses at Cleveland, Pittsburgh and Cincinnati, and the dates and amounts of high clearing house balances. COLLECTIONS—CITY AND FOREIGN: Departments for the handling of purely collection items which had been operating in a rather modest way increased rapidly during the year, owing to improvement in the facilities for handling collections payable throughout the United States. Because of direct communication 14 with all other Federal Reserve Banks and branches, we are able to offer our member banks quicker service at less expense than they had been accustomed to receiving. That our member banks appreciate this service is indicated by the steadily growing volume of collection items handled by our three offices during the year. PERSONNEL Because of the rapid expansion of the bank's operations during 1919 there were many additions to our official staff. These appointments necessitated a reorganization in our banking and fiscal agency departments. In January Mr. M. J. Fleming and Mr. F. J. Zurlinden, formerly Assistant Cashiers, were appointed Assistants to the Governor, and Mr. H. G. Davis, formerly an Assistant Cashier, was appointed Cashier to fill the vacancy caused by the resignation of Mr. Edwin Baxter, and Mr. C. W. Arnold was appointed an Assistant Cashier. In August Mr. P. A. Brown was appointed Assistant Cashier of our Pittsburgh branch. During December Mr. G. H. Wagner, formerly Auditor, and Messrs. G. A. Stephenson and D. B. Clouser were appointed Assistant Cashiers. Mr. F. V. Grayson, formerly Assistant Auditor, wras appointed Auditor. Schedule 30 gives comparative figures on the number of employes on December 31, 1918, and December 31, 1919. The retiring members of the Board of Directors for the year wrere Mr. Lyman H. Treadway, Class C Director, Mr. R. P. Wright, Class B Director and Mr. W. S. Rowe, Class A Director. It is with sincere regret that we announce the untimely death of our esteemed Vice-Chairman, Mr. Lyman H. Treadway, which occurred in December. Mr. Treadway served since the organization of the bank and was the permanent Cleveland member of the Executive Committee. Mr. L. B. Williams of the firm of Hayden, Miller and Company, Investment Bankers, of Cleveland, has been appointed his successor by the Federal Reserve Board. The re-election of Mr. R. P. Wright as a Class B Director is a further recognition of his ability. Mr. Chess Lamberton of the Lamberton National Bank of Franklin, Pa., is our newly elected Class A Director to succeed Mr. Rowe. Mr. Rowe was ineligible for re-election because of the amendment to the Federal Reserve Act that a Class A Director can be elected only by the banks which are members of the same group as the member bank of which he is an officer or director. The re-grouping of Mr. Rowe's institution has placed that bank in a different group from the one which voted. NEW BUILDING Following an exhaustive study of available building sites the Board of Directors, acting on the recommendation of the Committee appointed at the December, 1918, meeting, authorized the purchase of the Masonic Temple property at the northeast corner of 15 Superior Avenue and East Sixth Street. The area of the site purchased is approximately 30,000 square feet, and the purchase price was $865,000. On November 12, 1919, a contract was entered into with Messrs. Walker and Weeks, local architects, to assume charge of the erection of a new building on the site above mentioned. While no definite conclusion has been reached as to detailed plans, it is expected that a programme will be prepared early in the coming year. It is probable that the new building will be 6 or 8 stories, which should provide the space to meet our additional space requirements due to expansion of our present work, and the possibility of taking on additional functions within the next ten or fifteen years. The type of building will be thoroughly in keeping with the dignity of the institution. We are at present occupying 31,250 square feet of space scattered through the Williamson and the Thompson buildings. The available space is inadequate to meet even our present requirements, and the erection of a building designed for our special needs must result in greater convenience, and, as a result, increased efficiency. MISCELLANEOUS The increased activities during the past year have compelled us to establish an accounting and planning department for the purpose of centralizing all the accounting work and the preparing of all necessary forms into one department. It has also been found necessary to organize a new statistical department, together with an editorial department. The continued increase in operations has made necessary the enlargement of the departments of loans and discounts, money, foreign collections, analysis, and book-keeping, and the installation of a battery of five additional chests in our main vault. Operations at our Pittsburgh and Cincinnati branches have had a proportional increase, and expansion and remodeling have been necessary. A specially built armored truck has been purchased to facilitate transportation of and give better protection to our money and security shipments. Realizing the need of a good reference library for the use of our own bank staff, as well as of our member banks, a librarian was engaged in October of 1918. The library now contains about 400 volumes of works on banking and finance and other books for general reference, in addition to a large file of pamphlets, circulars and clippings. Ten daily newspapers are received and clipped. About seventy periodicals are received. The periodicals are indexed for all subjects which may have value for reference later. It has not been possible as yet to loan the books and periodicals from the library to other banks 16 except in special cases, but many reference questions have been answered and lists of books and references to periodicals have been compiled. As the library increases in size and scope there is no doubt it will prove of much value to the banks of this District. GENERAL BUSINESS AND BANKING CONDITIONS The uncertainty regarding the immediate future of business following the signing of the armistice gave way early in 1919 to a feeling of confidence, and the resumption of activity in practically all industries was limited only by the ability to secure the necessary labor and material. The district, as a whole, has enjoyed a fairly satisfactory degree of production, although a disposition to reduce the output of the more essential articles, in favor of those which may properly be classed as luxuries, is evident. In many lines in which production was curtailed, or entirely suspended during the war period, energetic action on the part of manufacturers has succeeded in bringing about a partial, if not quite complete return to the pre-war status. The two outstanding features in the industrial life of the District were the strikes of the steel workers and the coal miners. Both of these disturbances affected basic industries in this section. Certain lines have been affected by the shortage of some forms of steel, but a practical return to normal conditions is found in the steel trade today. The strike of the mine workers caused some inconvenience; in a number of communities coal allotment restrictions were again brought into force and some manufacturers were forced to limit or suspend operations. Fortunately a settlement was reached in time to prevent what might have been a serious blow to business. Local strikes are handicapping the efforts of some producers, but the effect on general business is negligible. Wages continue high, and there is employment for all who wish to work. Farmers are enjoying unusual prosperity—the result of highly satisfactory crops and a large money return. This is particularly true of the Kentucky tobacco section, and expressions of appreciation are heard of the ease with which the funds required to move the crop were secured from the Federal Reserve Banks. The demand for funds throughout the year has been unusually strong, especially during the last two months. Banks throughout the District enjoy unparalleled prosperity, and are amply able to meet the legitimate requirements of business. Movement of gold and cash reserves, Federal Reserve note and net deposit liabilities and the reserve percentage of the Federal Reserve Bank of Cleveland during the calendar year 1919. (In thousands of dollars, i, e., 000 omitted) Jan. 3. Jan. 10, Jan. 17 Jan. 24 Jan. 31 Feb. 7 Feb. 14 Feb. 20 Feb. 28. Mar. 7 Mar. 14 Mar. 21 Mar. 28 Apr. 4 Apr. 11 Apr. 18 Apr. 25 May 2 May 9 May 16 May 23 May 29 June 6 June 13. June 20 June 27 July 3 July 11 July 18 July 25 Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 Oct. 3 Oct. 10 Oct. 17 Oct. 24 Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 Gold Reserves Cash Reserves F. R. Notes in actual circulation 199,626 216,445 221,407 225,986 222,857 200,756 213.276 210,315 224,920 218,791 208,602 222,308 226,911 212,843 218,281 204,863 214,971 212,801 210,216 228,947 208,321 204,821 213,014 215,832 197,361 183,462 202,564 216,305 197,947 201,873 186,879 189,150 192,026 201,491 208,558 209,787 216,704 220,264 214,671 211,942 210,480 210,320 202,224 205,923 185,120 178,356 171,100 163,953 181,572 178,324 169,118 181,253 200,855 217,690 222,875 227,658 224,466 202,819 214,627 211,323 226,002 200,054 209,685 223,409 228,000 213,959 219,349 206,044 216,273 213,992 211,331 230,134 209,391 205,826 214,118 216,771 198,229 184,400 203,363 217,179 198,857 202,771 187,906 190,155 192,991 202,349 209,440 210,543 217,556 221,142 215,583 212,835 211,395 211,223 203,130 206,864 185,991 179,181 171,978 164,790 182,485 179,030 169,786 181,786 248,670 249,933 239,606 235,564 231,153 232,992 233,874 228,815 233,069 230,950 229,761 229,590 232,642 229,221 233,042 227,698 230,595 228,202 227,838 225,171 224,788 223,599 218,094 217,934 213,454 214,663 217,567 220,142 215,948 218,794 215,039 220,064 222,903 225,448 231,136 231,449 237,017 233,862 242,280 241,221 245,900 243,718 246,295 243,740 246,549 248,080 245,484 251,011 250,384 255,337 260,188 272,884 18 Net Deposits 107,343 117,076 121,756 132,742 128,746 115,066 136,428 136,245 150,467 138,410 135,963 149,040 139,307 130,296 144,522 127,644 124,327 138,325 125,435 135,238 135,000 131,300 130,530 150,693 134,872 123,163 129,461 144,485 138,189 143,402 131,031 128,989 134,577 125,210 134,978 130,292 128,134 136,101 134,374 137,628 131,296 139,857 126,384 139,675 134,558 136,384 139,921 130,744 130,282 128,736 109,795 119,706 (3 +4) 356,013 367,009 361,362 368,306 359,899 348,058 370,302 365,060 383,536 369,360 365,724 378,630 371,949 359,517 377,564 355,342 354,922 366,527 353,273 360,409 359,788 354,899 348,624 368,627 348,326 337,826 347,028 364,627 354,137 362,196 346,070 349,053 357,480 350,658 366,114 361,741 365,151 369,963 376,654 378,849 377,196 383,575 372,679 383,415 381,107 384,464 385,405 381,755 380,666 384,073 369,983 392,590 Ratio of cash reserves to net deposit and F. R. Note liabilities combined 56.4 59.3 61.7 61.8 62.4 58.3 58.0 57.9 58.9 59.6 57.3 59.0 61.3 59.5 58.1 58.0 60.9 58.4 59.8 63.9 58.2 58.0 61.4 58.8 56.9 54.6 58.6 59.6 56.2 56.0 54.3 54.5 54.0 57.7 57.2 58.2 59.6 59.8 57.2 56.2 56.0 55.1 54.5 54.0 48.8 46.6 44.6 43.2 47.9 46.6 45.9 46.3 4 8 FEDERALRESERVEBANKOFCLEVELAND i NET DEPOSIT LIABILITY, F.R. NOTE CIRCULATION, CASH RESERVES.AHD RESERVE RATI0.19I9. 70 60 70 60 SO 50 40 40 30 30 20 2O 10 10 0 0 RESERVE RATIO, (PERCEnTA6E OrC+L). 200 200 PEPOSlTAPfD F.R. NOTE LIABILITIES, -t, Alit> TOTAL RE$ERVES,'C: JAn\FEB\MCH\APRL\MlryunE\/ULrY(JG\SEPr\OCT. IYOKDEC. 19 Movement of the principal earning assets of the Federal Reserve Bank of Cleveland during the calendar year 1919. (In thousands of dollars, i, e., 000 omitted) Discounted Total paper bills Bills Other secured disdisby (1 + 2) Percent bought (1 + 3) in open counted United counted and market paper States bought War obligations 115,099 113,381 96,398 91,049 87,593 84,325 97,060 95,522 101,209 96,969 110,674 114,661 114,559 120,577 131.219 126,582 122,102 135,096 126,460 115,743 134,152 131.404 118,393 128,601 121,593 119.768 105,432 104.473 100.469 103,063 101,826 100,989 110,082 100,181 116,329 114,897 110,435 104.907 111.635 119,263 120,582 122,463 116,920 113,502 111,733 122,339 125,938 130,272 116,672 118,469 112,254 120,536 12,074 9,177 9,355 8,754 8,086 7,282 6,745 7,316 6,320 4,934 4,503 3,654 2,332 3.022 7,269 8,469 5,935 5,229 5,223 4,923 5,206 6,785 6,114 6,045 6,623 7,201 8,554 8,443 9,661 11.463 10,517 10,710 10,810 11,110 9,656 9,601 9,549 11,888 18,475 21,464 21,526 24,960 23,793 23,438 27,473 26,744 30,194 32,966 35,463 41,245 43,951 47,041 127,173 122,558 105,753 99,803 95,679 91,607 103,805 102,838 107,529 101,903 115,177 118,315 116,891 123,599 138,488 135,051 128,037 140.325 131,683 120,666 139.358 138,189 124,507 134,646 128,216 126,969 113,986 112,916 110.130 114,526 112,343 111,699 120,892 111,291 125,985 124.498 119,984 116,795 130,110 140,727 142,108 147,423 140,713 136,940 139,206 149,083 156,132 163,238 152,135 159,714 156,205 167,577 20 90.5 92.5 91.2 91.2 91.5 92.0 93.4 92.8 94.1 95.2 96.1 96.8 98.0 97.6 94.7 93.7 95.3 96.3 96.0 95.9 96.3 95.1 95.0 95.5 94.8 94.3 92.5 92.5 91.2 89.9 90.6 90.4 91.1 90.0 92.3 92.3 92.0 89.8 85.8 84.7 84.8 83.0 83.0 82.9 80.3 82.1 80.6 79.8 76.7 74.2 71.8 71.9 36,478 32,100 40,362 44,749 48,510 63,235 61,750 61,359 60,797 57,648 51,183 47,231 37,452 32,694 29,719 24,017 21,254 22,652 20,881 20,464 21,562 21,364 20,132 26,914 31,969 36,972 40.316 44,025 55.649 56,139 56,916 57,047 54,573 46,660 42,133 37,853 39,242 41,768 40,510 35,588 34,814 36,240 39.779 50.757 68,402 67.811 67.971 64,694 57,900 58,118 56,867 56.923 163,651 154,658 146,115 144,552 144,189 154,842 165,555 164,197 168,326 159,551 166,360 165,546 154,343 156,293 168,207 159,068 149,291 162,977 152,564 141,130 160,920 159,553 144,639 161,560 160,185 163,941 154,302 156,941 165.779 170,665 169.259 168,746 175,465 157,951 168,118 162,351 159,226 158,563 170,620 176,315 176,922 183,663 180,492 187,697 207,608 216,894 224,103 227,932 210,035 217,832 213.072 224,500 U.S. Total securi- earning assets ties 12,810 16,203 14,222 18.186 13,143 12,270 12,150 12,424 12,425 13,425 13,925 14,540 15,159 15,131 15,499 17,114 16,581 17,131 17,131 17,087 17,525 17,550 18,059 18,110 18,595 18,580 18,629 20,396 19.658 19,441 19,968 21,568 21,053 23,017 21,610 22.495 22,495 24,668 25,872 25,798 25,698 25,808 25,827 25,727 24,969 25,828 26,862 26,727 25,990 25,980 25.975 25,660 176.461 170,861 160,337 162,738 157,332 167,112 177,705 176,621 180,751 172,976 180,285 180,086 169,502 171,424 183,706 176,182 165,872 180,108 169,695 158,217 178,445 177,103 162,698 179,670 178,780 182,521 172,931 177,337 185,437 190,106 189,227 190,314 196,518 180,968 189.728 184,846 181.721 183,231 196,492 202,113 202,620 209,471 206,319 213,424 232,577 242,722 250,965 254,659 236,025 243,812 239,047 250,160 f> K, § I SO FEDEMLRttWEBAM OFCLEVELAND MOVEMENT OF EARNING ASSETS DURING CALENDAR YEAR 1919. SO 0 I SS^\skr.V;*.': II ...\II-'I:'.. UNITEDSTATES SECURITIES 100 100 ACCEPTANCES B0U6HT. 100 80 60 40 20 O CO -— — •• • so « 60 <0 a? 0 PERCENTAGE OF fVAR PAPER TO TOTAL DISCOUNTS. 200 200 TOTAL BILLS DISCOUNTED, -D; AND WAR PAPER; TOTAL EARNING ASSETS. 21 s .... t . . . t . . . . * . . . a .... - MO CAXA*\ * i mi* iXi&ii'a.'ftii VOIV no » 4 5 J MA ii US 'YAo, L I*/ /^ &ftH.VULV tic / lot 0 N/ wo ^ —^\y A \ / V 130 M< 730 A 0 uo \/ 110 v' / \ v - ' \ 100 2 \ 90 nj r-""' O SO 70 - - . . / • • • "'•-•' / ' • • • . / . J 60 \ \ +0 JO zo 10 It / —N 1 SO \ • N • \ j \ / '" • - ' —— Vs / -© • 3 • • • 'J • ' 'J ' ' • j ' ' ' • £ VAWATV 70% eo% sot 7 o t , 'vs • • ' - 5 • • ' g • • • Wv 1.1 t Wt 3 ti \7 _ _ 18 (6 H Z SCHEDULE 1.—Statement of condition of the Federal Reserve Bank of Cleveland, December 31, 1919, compared -with December 31, 1918. RESOURCES Gold redemption fund. Federal Reserve notes Gold with Federal Reserve agent Gold settlement fund Gold coin and certificates Gold with foreign agencies Gold in transit for redemption Total gold reserve Legal tender notes and silver certificates and coin Legals and silver in transit for redemption Total cash reserve Federal Reserve notes on hand Federal Reserve bank notes on hand Nickels and cents Our Mutilated Federal Reserve notes forwarded for redempt Due from Treasurer U. S. 5% Fund (Federal Reserve bank notes) Overdrafts Total National bank notes and notes of other Federal Reserve banks Unassorted currency Uncollected transit items Total deductions from gross deposits Bills discounted Member banks collateral notes Rediscounts for other Federal Reserve banks Acceptances purchased United States bonds and securities:— 2% Treasury special certificates of indebtedness to secure circulation 3% One year treasury notes 3 % lConversion bonds 3y& 7c Liberty loan bonds % Liberty loan bonds % Victory loan bonds %% Victory loan bonds 4^Sc Certificates of indebtedness Total earning assets Interest accrued on U. S. securities War loan expenses advanced Liberty loan bonds sold on installment plan to employees Other deferred charges Difference account Real estate owned Due from banks—war loan accounts Total resources LIABILITIES Federal Reserve notes outstanding Federal Reserve bank notes outstanding Total currency outstanding United States government deposits Member banks—reserve accounts Contracts to deliver Liberty Bonds sold employeesOfficial checks and drafts outstanding Foreign government credits Collected funds on deposit Deferred availability items Gross deposits 1919 1918 $1,872,462.24 128,794,225.00 43,848,018.81 4,870,097.50 10,768,257.35 475,500.00 190,628,560.90 635,770.45 77,100.00 191,341,431.35 17,355,115.00 460,010.00 1,376.15 $1,368,280.00 138,277,370.00 52,125,485.35 12,865,862.50 524,598.71 391,322.50 205,552,919.06 850,959.55 276,004.00 206,679,882.61 14,147,660.00 869,385.00 695.38 1,732,565.00 589,720.00 1,122,000.00 39,976.71 531,800.00" 1,725.73 16,140.986.11 20,711,042.86 3,456,640.00 3,185,787.00 77,055,466.83 83,697,893.83 63,043,012.89 101,474,120.00 48,606,679.40 23,299,000.00 414,800.00 16,200.00 402,400.00 10,100.00 150.00 284,000.00 237,550,462.29 226,732.80 330,385.98 2,362.28 193.76 9,458,000.00 1,202,000.00 414,800.00 266,200.00 403,550.00 1,065,500.00 177,590,447.17 58,514.53 766,785.38 24,300.00 17,646.11 640,000.00 51,127,523.44 585,628,028.59 38,413,558.56 502,522,074.94 283,801,770.00 22,491,000.00 306,292,770.00 1,675,111.23 129,415,061.66 266,519,915.00 10,600.000.00 277,119,915.00 749,987.60 123,423,976.31 13,128,00 196,072.59 200,015.64 5,928,112.60 137,218,301.13 71,603.531.00 208,821,832.13 45,055.98 Reserved for taxes on Federal Reserve bank notes... 89,450.85 Reserved for depreciation on U. S. bonds 46,554.88 Reserved for Federal Reserve board expenses, 1920 •Reserved for franchise tax 9,532,950.00 Capital paid in 9,089,000.00 Surplus fund 582,891.31 Unearned discount and interest 51,127,523.44 Treasurer of the U. S. (special deposit account) Treasurer of the U. S. (Liberty loan deposit account) Other liabilities (difference account) 585,628,028.59 Total liabilities T h i s amount was transferred to Surplus Account, March 3, 1919, as provided ment to the Federal Reserve act approved that day. 27 4,275,119.00 '5~8~554,835"47 62,829,954.47 28,412,284.55 77,339,400.00 21,583,497.09 37,445,215.53 124,383,164.59 49,581.406.40 173,964,570.99 84,406.79 •1,776,000.00 9,072,700.00 1,776,000.00 314,121.08 26,466,812.78 11,946,745.78 802.52 502,522,074.94 by an amend- SCHEDULE 2.—Comparative statement profit and loss account, 1919-1918. 1918 $ 132,311.58 Balance profit and loss, December 30, 1917. Earnings:— Discount on bills discounted Discount on bills purchased Income from U. S. securities Penalties on deficient reserves Transfers bought and sold—net Miscellaneous Rents received—net TotalExpenses :— Cost of Federal Reserve currency (including taxes on bank note circulation) Furniture and equipment (Main Office and branches) Depreciation of property purchased for bank premises (charged off) Premium on U. S. bonds and securities (charged off) Coupon shipment lost (charged off) Operating Expenses:— Main office Cincinnati branch Pittsburgh branch Difference account Dividends paid •Transferred to reserve for franchise tax Transferred to surplus account Transferred to reserve for taxes F. R. bank notes Transferred to reserve for Federal Reserve board expenses,1920 $5,341,785.14 1,882,984.84 450,308.07 66,441.90 45,606.92 4,569.03 9,133.18 3,130,600.29 1,135,680.37 779,133.53 66,462.03 51,213.53 7,800,829.08 5,359,175.19 246,983.25 53,414.55 188,661.12 85,784.13 254,683.73 5,044.06 4,199.85 98,882.79 728,899.24 141,735.87 179,941.98 530.00 556,785.69 5,537,000.00 45,055.98 46,554.88 7,800,829.08 63,773.86 525,652.24 89,257.91 102,829.78 716,107.22 •1,776.000.00 1,776,000.00 5,359,175.19 *This amount was transferred to surplus account March 3, 1919, in accordance with an amendment to Federal Reserve act approved March 3, 1919. SCHEDULE 3.—Gross earnings, classified, expenses and net earnings 1919. Bills discounted Member Banks Acceptances Purchased Rediscounted for other F.R. Banks United States Securities $335,621.53 311,487.88 365,212.92 362,611.51 383,194.51 349,620.17 393,757.49 409,717.01 412,337.65 499,515.61 542,710.50 630,521.39 $140,357.95 196,024.92 179,576.23 91,782.87 76,839.48 99,806.84 176,266.74 186,823.57 140,062.57 135,295.24 242,913.26 217,235.17 $ 59,295.45 2,979.43 19,221.11 79,320.03 90,307.86 88,315.66 2,311.40 $35,052.33 21,529.71 25,517.13 28,691.93 31,372.34 31,743.74 36,939.55 39,832.62 51,209.38 50,551.30 47,792.65 52,425.39 4,996,308.17 1.882,984.84 345,476.97 452,658.07 All Other Earnings Total Earnings Total Expenses Net Earnings $ 8.744.33 10,316.02 7,722.57 8,010.98 8,856.03 7,247.68 9,776.26 10,091.62 13,794.64 15,530.40 12,033.03 11,277.47 $579,071.59 542,337.96 597,249.96 570,417.32 590,570.22 576.734.09 619,051.44 646,464.82 621.130.27 700,892.55 845,449.44 911.459.42 $ 93,863.20 115.526.90 119,519.43 83,108.35 90,257.99 93.365.77 305,779.12 $485,208.39 426,811.06 477,730.53 487,308.97 500,312.23 492,271.93 520,839.80 557,820.45 536,154.97 607,631.89 752,083.67 605,680.30 123,401.03 7,800,829.08 1,350,974.89 6,449,854.19 January- February March April May June July August September October.. November December. January _ . FebruaryMarch April May June July August September October.. November December. 3,726.03 84,462.16 98,211.64 88,644.37 84,975.30 93,260.66 SCHEDULE 4.—Daily average earning assets, earnings thereon and average rate per annum, year 1919, as compared with year 1918; also other earnings. Earning Assets 1919 1918 1919 Bills discounted members and other Federal Reserve Banks $126,649,267.08 $73,080,025.35 Acceptances bought and acq u i r e d from other Federal Reserve Banks United States bonds, notes, and certificates of indebtedness 44,147,873.88 Average Rate Earnings 1918 1919 1918 $5,341,785.14 $3,124,696.41 4.22 4.28 1,882,984.84 1,141,584.25 4.27 4.20 27,175,072.99 20,388,886.71 17,721,544.11 450.308.07 611,894.58 2.21 3.45 191,186,027.67 117,976,642.45 7,675,078.05 4,878,175.24 4.02 4.13 OTHER EARNINGS 1919 Profits on earning assets Profits realized on U. S. Securities Service Charges (Net) Sundry profits (Including 1919 rents—S9.133.18 net). Penalties on deficient reserves Transfers $7,675,078.05 2,350.00 1918 11,352.21 66,441.90 45,606.92 $4,878,175.24 167,238.95 41,029.48 22,744.38 66,462.03 51,213.53 Total Earnings. Total Expenses. 7,800,829.08 1,350,974.89 5,226,863.61 992,185.18 Net Earnings Capital, Daily average Rate per annum Gross Earnings to CapitalRate per annum Net Earnings to Capital.. 6,449.854.19 9,281,982.00 84.04% 69.49% 4,234,678.43 8,585,995.89 68.76% 48.16% SCHEDULE 5.— Values of loans, discounts and investments handled during year 1919 as compared with 1918. 1919 Discounted and Purchased: $349,775,194.10 Bills discounted, members 2,776,081,175.00 Member banks collateral notes Acceptances bought in open market and acquired from other 318,330,395.64 Federal Reserve Banks 229,017,300.00 Rediscounts, Federal Reserve Banks 284,617,250.00 U. S. Securities $392,524,428.41 993,593,567.01 Total". 3,957,821,314.74 1,903,875,236.07 Increase over 1918.. 2,053,946,078.67 Paid and Sold: Bills discounted, members Member banks collateral notes Acceptances Rediscounts, Federal Reserve Banks. Municipal warrants United States securities 273,000,650.00 $401,275,171.13 921,987,317.01 159,384,601.63 61,352,667.35 7,233.38 285,852,410.00 3,897,893.799.62 1,829,859,200.50 $315,144,465.76 2,751,978,955.00 307,168,931.77 250,600,797.09 Total 2.068,034,599.12 Increase over 1918. 29 175,717,826.21 82,915,964.44 259,123,450.00 SCHEDULE 6A.—Loans and Rediscounts for Member Banks, by States. (Comparison of years 1919 and 1918.) 1918 1919 Total - $59,145,705.55 1,324,416.219 56 1,712,941,061 03 29,353,382.96 S35.486.887 19 790,608,919.16 555,474,713.94 4,547,475.13 $3,125,856,369.10 SI,386,117,995 42 APPROVED APPLICATIONS FOR LOANS AND REDISCOUNTS West Virginia banks Total - - 1919 1918 1,034 6,701 4,130 317 699 3,746 1,210 59 12,182 5,714 BANKS ACCOMMODATED Kentucky Ohio.. Pennsylvania West Virginia - Total 1919 1918 29 226 144 10 32 184 100 4 409 320 Of the foregoing banks accommodated, 73 were State bank members, distributed as follows: Kentucky 7 Ohio 45 Pennsylvania 19 West Virginia... 2 73 SCHEDULE 6B.—Rediscounts, Members and Member-Bank Collateral Notes, 1919. Kentucky Pennsylvania Ohio West Virginia Total * 1,034 Approved applications 4,130 6,701 317 12,182 Banks accommodated 29 144 226 10 409 Commercial and Industrial $2,616,248.60 $20,556,285.90 $212,845,604.95 $265,150.00 $236,202,626.56 paper 889,781.02 5,054,575.81 8,045,261.21 21,062.10 Trade acceptances 14,091,343.03 Agricultural and live stock 175,108.22 53,830.79 383,646 30 paper 612,585.31 Liberty loan secured redis2,809,867.71 7,517,473.53 87,796,627.10 744,670.86 counts 98,868,639.20 Member banks' collateral notes 1,011,700.00 secured by commercial paper 1,036,700.00 25,000.00 Member banks' collateral notes secured by U.S. Gov't. se52,654,700.00 curities 1,679,66 >,895.00 1,013,928,380.00 28,322,500.00 2,774,571,475.00 Member banks' collateral notes secured by War Finance Cor405,000.00 poration bonds 68,060.00 59,145,705.55 1,712,941,061.03 1,324,416,219.56 29,353,382.96 3,125,856,369.10 Totals. SCHEDULE 7.—Comparison of various classes of rediscounts and loans, years 1918 and 1919. 1919 Commercial and Industrial Paper Trade acceptances Agricultural and Live Stock Paper Bankers' Acceptances Customers' paper secured by United States Securities Member bank collateral notes secured by commercial paper Member bank collateral notes secured by War Finance Corporation Bonds Member bank collateral notes secured by United States Goverment Securities S236.202.626.56 14.091,343.03 612,585.31 $295,014,269.50 24,894,290.84 822,256.06 98,868,639.20 196,530.22 72,033,581.79 1,036,700.00 4,940,000.00 473,000.00 Total 2,774,571,475.00 988,217,067.01 3,125,856,369.10 1,386,117,995.42 SCHEDULE 8.—Comparison of classes of rediscounts and loans to State members, year 1918 and 1919. Commercial and Industrial Paper. . Customer's Paper secured by United States Government Securities Member Bank Collateral Notes secured by Commercial Paper_ Member Bank Collateral Notes secured by United States Government Securities, Bank 1919 1918 829,530,524.64 $24,914,733.98 26,450,256.38 14,760,903.61 128,000.00 — Total 900,467,700.00 230,694,650.00 956,576,481.02 270,370,287.59 SCHEDULE 9.—Rediscounts for other Federal Reserve Banks. years 1919 and 1918.) {Comparison of 1918 Total Rediscounts for other Federal Reserve Banks. $ 82,935,964.44 SCHEDULE 10.—Acceptances purchased in open market and acquired from other Federal Reserve Banks. {Comparison of years 1919 and 1918.) 1919 Banker's Acceptances—Foreign Banker's Acceptances—Domestic Banker's Acceptances—Dollar Exchange — - - Trade Acceptances—Foreign Trade Acceptances—Domestic Total 31 1918 $218,372,205.66 94,754,068.03 749,100.16 $79,253,973.24 88,425.763.62 2,725,000.00 1,563,236.08 2,891,785.71 1,272,431.64 4,040,657.71 318,330,395.64 175,717,826.21 SCHEDULE 11.— United States Government securities purchased. years 1919 and 1918.) {Comparison of 1919 $262,341,000.00 Special 2% Certificates of Indebtedness. 3% Notes and Bonds 4% Bonds 4% Certificates of Indebtedness M% Certificates of Indebtedness Certificates of Indebtedness Liberty Loan Bonds %% Victory Liberty Loan Notes 3%% Victory Liberty Loan Notes 66,bbb"6o 150.00 10,100.00 284,617,250.00 Total. SCHEDULE 12.—Daily average earning assets. 1918.) Bills Discounted—Members and other Federals Acceptances Bought and Acquired from other Federal United States Bonds, Notes and Certificates .-- Daily average for the year SCHEDULE 14.—Total earnings by months. - July August September October November December „ . . _ . . $73,080,025.35 27,175,072.99 20,388,886.71 17,721,544.11 191,186,027.67 117,976,642.45 {Comparison of years $164,241,659.28 170,948,548.14 173,910,959.15 172,964,435.24 171,087,917.18 173,873,814.06 181,768,332.74 191,824,941.40 193,874,811.41 206,106,660.00 244,364,640.72 247,963,050.47 $98,431,722.64 85,756,007.73 80,536,483.70 97,438,700.16 87,877,187.03 80,065,794.97 109,206,763.04 120,525,409.00 126,224.096.78 152,741,522.45 174,460,237.78 200,956,638.34 191,186,027.67 117,976,642.45 {Comparison of years 1919 and 1918.) 1918 .. $579,071.59 542,337.96 597,249.96 570 417 32 590,570.2.2 576,734.09 619,051.44 646,464.82 621,130.27 700,892.55 845,449.44 911,459.42 $323,990.58 266,199.13 281,1.21.06 338 809 13 330,181.94 332,145.06 510,415.03 509,010.20 458,327.16 553,835.48 608,935.38 713,893.46 Total 7,800,829.08 5,226,863.61 . .. . 1918 44,147,873.88 1919 January. February March.. April . May June . 259,123,450.00 $126,649,267.08 SCHEDULE 13.—Daily average earning assets by months. 1919 and 1918.) January February.. March April May June July August September. October November. December.. 20,729,000.00 412,200.00 {Comparison of years 1919 and 1919 Total.. $65,458,000.00 1,207,000.00 61,250.00 171,256,000.00 32 {Comparison of years 1919 SCHEDULE 15.—Average rate of earnings by months. and 1918.) 1919 January February March April May June July August September October November December Average rate per annum. 4.08% 4.06% 3.99% 3.96% 4- % 3.98% 3.95% 3.90% 3.81% 3.90% 4.15% 4.27% 3.68% 3.86% 3.89% 4.06% 4.21% 4.27% 4.31% 4.36% 4.30% 4.15% 4.11% 4.09% 4.02% 4.13% SCHEDULE 16.—New National and State bank members during 1919. Date of Admission June July July Aug. Aug. Oct. Oct. Dec. 14 2 30 6 13 1 13 13 Name of Bank Shares subscribed Location First National Bank _ Pandora, Ohio Cleveland, Ohio Northern National Bank First National Bank _. _ Jefferson, Pa Cumberland, Ohio First National BankFirst National Bank _ Sycamore, Ohio Middletown, Ohio First & Merchants National Bank Citizens National Bank . Hooversville, Pa. Monessen, Pa. Citizens National Bank 9 375 9 30 15 324 23 36 STATE BANKS ADMITTED TO SYSTEM. Date of admission Jan. Jan. Jan. 16 21 29 Feb. 1 Feb. 15 Feb. 27 Feb. 27 Mar. 6 April 23 April 24 May May May May May June July July July Aug. Aug. Aug. Aug. Sept. Sept. Sept. Sept. Oct. Nov. Dec. Dec. Dec. Dec. 2 14 17 22 22 19 15 28 30 9 25 29 30 12 19 20 29 to3 15 30 30 31 Location Name of Bank The Merchants Trust Co Greensburg. PaMansfield, Ohio.. The Farmers Savings & Trust Co Brooksville, Ky__ The Farmers Equity Bank Shiloh, Ohio The Shiloh Savings Bank Co Columbiana, Ohio The Union Banking Co McCutchenville.O The Farmers Bank Shelby, Ohio The Citizens Bank The Conneaut Mutual Loan & Trust Co Conneaut, Ohio.. Shadyside, Ohio The Shadyside Bank The Union Savings Bank & TrustCo— Steubenville, Ohio Metamora, Ohio.. The Farmers & Merchants Bank Co Frazeysburg, Ohio The Peoples Bank Co Wheeling, W. Va. The Security Trust Co The Firestone Park Trust & Savings Bk. Akron, Ohio Pandora, Ohio The Farmers Bank Co Bridgeport, Ohio.' The Bridgeport Bank & Trust Co UpperSandusky.O The Citizens Savings Bank Hubbard, Ohio The Hubbard Banking Co Pemberville, Ohio The Pemberville Savings Bank Co Middlefield, Ohio. The Middlefield Banking Co Rittman, Ohio The Rittman Savings Bank The Wakeman Bank Co Wakeman, Ohio. Apple Creek, Ohio The Apple Creek Banking Co Warren, Ohio The Union Savings & Trust Co Portsmouth, Ohio The Security Bank Cleveland, Ohio.. The Pearl St. Savings & Trust Co Orrville, Ohio The Orrville Savings Bank Mound sville,W.Va The Marshall County Bank Eldorado, Ohio The Farmers State Bank Wheeling, W. Va The Wheeling Bank & Trust Co Pittsburgh, Pa The City Deposit Bank Georgetown, Ky.. The Farmers Bank & Trust Co Pittsburgh, Pa.._. The Potter Title & Trust Co 33 Capital and surplus $188,600 200,000 37,500 41,000 75,000 30,000 140,000 165,000 38,900 500,000 30,500 60,000 500,000 275,000 32,500 115,000 80,000 75,000 30,000 50,000 33,500 35,000 40,000 600,000 400,000 Deposits when admitted $1,202,000 1,016,000 242,000 321,000 521,000 88,000 1,031,000 1,437,000 211,000 2,941,000 243,000 417,000 2,208,000 3,154,000 165,000 786,000 617,000 803,000 491,000 317,000 307,000 260,000 237,000 1,000,000 95,000 190,000 37,675 680,000 1,000,000 165,000 575,000 3,698,000 1,785,000 12,512,000 729,000 990.000 404.000 4,695.000 9,925,000 661,000 3,078,000 7,515,175 57,492,000 SCHEDULE 16.—Continued. MEMBER BANKS LIQUIDATED DURING 1919. Name of Bank Location Shares Surrendered Disposition Cincinnati, Ohio—. Merged with Fifth-Third National Bank, Cincinnati, Cleveland, Ohio.. Merged with Guardian Savings & Trust Co., Cleveland into the First & MerFirst National Bank ] Middletown, Ohio< Consolidated chants National Bank, MiddleMerchants National Bank / town Steubenville, Ohio. Merged with Steubenville Bank & Commercial National Bank Trust Co., Steubenville Liquidated to form Manufacturers & Black Lick, Pa First National Bank Mechanics Bank, Black Lick Merged with Oil City National Bank, Oil City, Pa Lamberton National Bank Oil City Reynoldsville, Pa_ Merged with Peoples National Bank, Citizens National Bank Reynoldsville First National Bank Bluffton, Ohi In hands of Receiver First National Bank . In voluntary liquidation Roseville, Ohio First Standard Bank & Trust Co- Maysville, Ky .! Merged with Bank of Maysville Mt. Sterling, Ky._ .Withdrew Exchange Bank of Kentucky Market National Bank Cleveland National Bank Total Shares 540 1,200 102 105 150 38 ISO 39 .•so io 150 51 2.610 MEMBER BANKS IN DISTRICT No. 4. Number of member banks December 31, 1918 New national banks organized State banks and trust companies admitted Total Liquidated during 1919 Number of member banks December 31, 1919 Capital stock paid in, December 31, 1919 Capital stock paid in, December 31, 1918 Increase 814 8 33 855 12 843 $9,532,950.00 9,072,700.00 460,250.00 SCHEDULE 17.—Banks granted fiduciary powers under Section 11 of the Federal Reserve Act. Date Name Location Dec. 22 American National Bank Newport, Ky Mar. 22 First National Bank Paris, Ky July 11 Farmers National Bank Somerset, Ky Jan. 24 First-Second National Bank Akron, Ohio Mar. 22 National City Bank Akron, Ohio May 7 Atlas National Bank Cincinnati, Ohio. Oct. 15 Citizens National Bank Cincinnati, Ohio.- Feb. 13 Fifth-Third National Bank Cincinnati, Ohio Oct. 10 First National Bank Cincinnati, Ohio.. Oct. 6 Second National Bank Cincinnati, Ohio.. Oct. 7 National City Bank Cleveland, Ohio.. Oct. 31 Union Commerce Natl. Bank-.Cleveland, Ohio.. Feb. 21 Commercial National Bank Coshocton, Ohio. Feb. 21 First National Bank Bellaire, Ohio June 2 First National Bank Bucyrus, Ohio. Feb. 10 Merchants National Bank Dayton, Ohio.. Feb. 8 Winters National Bank July 9 First National Bank.. June 23 Merchants National Bank ..Dayton, Ohio .Defiance, Ohio. Defiance, Ohio. 35 Powers granted -Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, receiver and committee of estates of lunatics." -Trustee, executor, administrator, registrar of stocks and bonds, guardian ofiestates, receiver, committee of estates of lunatics. .Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, receiver, and committee of estates of lunatics. -Trustee, and registrar of stocks and bonds. .Trustee under a will, registrar of stocks and bonds, trustee under a mortgage securing an issue of bonds, and such other trust capacities, if any, as the proper courts in Ohio may authorize. .Trustee, and registrar of stocks and bonds. .Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and receiver. Trustee under a will, registrar of stocks and bonds, trustee under a mortgage securing an issue of bonds, and such other trust capacities, if any, as the proper courts in Ohio may authorize. .Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee and receiver. .Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee and receiver. .Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee and receiver. -Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee and receiver. -Trustee under a will, registrar of stocks and bonds, trustee under a mortgage securing an issue of bonds, and such other trust capacities, if any, as the proper courts in Ohio may authorize. -Trustee under a will, registrar of stocks and bonds, trustee under a mortgage securing an issue of bonds, and such other trust capacities, if any, as the proper courts in Ohio may authorize. -Trustee, and registrar of stocks and bonds. -Trustee under a will, registrar of stocks and bonds, trustee under a mortgage securing an issue of bonds, and such other trust capacities, if any, as the proper courts in Ohio may authorize. -Trustee under a will, registrar of stocks and bonds, trustee under a mortgage securing an issue of bonds, and such other trust capacities, if any, as the proper courts in Ohio may authorize. .Trustee and registrar of stocks and bonds. .Trustee and registrar of stocks and bonds. SCHEDULE 17.—Banks granted fiduciary powers under Section 11 of the Federal Reserve Act—Continued. Date Name Nov. 1 Union National Bank Location Fostoria, Ohio June 11 Citizens National Bank Galion, Ohio Feb. 8 First National Bank Hamilton, Ohio Oct. 17 Merchants National Bank Hillsboro, Ohio Feb. 8 Lebanon National Bank Lebanon, Ohio Feb. 8 Central National Bank Marietta, Ohio July 16 First National Bank Marietta, Ohio June 23 Merchants National Bank Massillon, Ohio Feb. 5 Second National Bank Ravenna, Ohio Sept. 26 National Exchange Bank Steubenville, Ohio Nov. 22 Tiffin National Bank Tiffin, Ohio Nov. 1 First National Bank Troy, Ohio July 11 Clinton County Natl. Bank Wilmington, Ohio Nov. 7 Old Citizens National Bank Zanesville, Ohio May 9 First National Bank Zanesville, Ohio Oct. Ellwood City, Pa 9 First National Bank Mar. 8 Lamberton National Bank Franklin, Pa Sept. 26 First National Bank Greensburg, Pa Mar. 8 First National Bank Meadville, Pa May 12 First National Bank New Castle, Pa 36 Powers granted Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee and receiver. Trustee and registrar of stocks and bonds. Trustee under a will, registrar of stocks and bonds, trustee under a mortgage securing an issue of bonds, and such other trust capacities, if any, as the proper courts in Ohio may authorize. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee and receiver. Trustee under a will, registrar of stocks and bonds, trustee under a mortgage securing an issue of bonds, and such other trust capacities, if any, as the proper courts in Ohio may authorize. Trustee under a will, registrar of stocks and bonds, trustee under a mortgage securing an issue of bonds, and such other trust capacities, if any, as the proper courts in Ohio may authorize. Trustee and registrar of stocks and bonds. Trustee and registrar of stocks and bonds. Trustee and registrar of stocks and bonds. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee and receiver. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee and receiver. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee and receiver. Trustee and registrar of stocks and bonds. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee and receiver. Trustee, and registrar of stocks and bonds. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, receiver, committee of estates of lunatics. Trustee, executor, administrator, registrar of stocks and bonds : guardian of estates, assignee, receiver, and committee of estates of lunatics. SCHEDULE 17.—Banks granted fiduciary powers under Section 11 of the Federal Reserve Act—Continued. Date Name Location July 30 The Oil City National Bank Oil City, Pa Oct. 15 Bank of Pittsburgh, N. A Pittsburgh, Pa Aug. 21 Duquesne National Bank Pittsburgh, Pa June 18 Monongahela National Bank ..Pittsburgh, Pa Mar. 25 Second Natl. Bank ofAllegheny. Pittsburgh, Pa Dec. 5 Third National Bank Pittsburgh, Pa Sept. 26 Union National Bank Pittsburgh, Pa Mar. 22 Punxsutawney National Bank .Punxsutawney, Pa May 12 Second National Bank • Titusville, Pa Feb. 21 Warren National Bank Warren, Pa May 24 First National Bank Washington, Pa Sept 11 National Bank of West Va Wheeling, W. Va 37 Powers granted Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. Registrar of stocks and bonds. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics. Executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. SCHEDULE 18.—Certificates of Indebtedness—loan issues. NATIONAL BANKS Date Series Maturity Number of Banks Jan. Jan. Jan. Feb. Feb. Mar. Apr. May Aug. Aug. Sept. Dec. 2 16 30 13 27 13. . . 10 1 1 15 2. . . . 1 June 3, 1919 June 17, 1919 July 1, 1919 July 15, 1919 July 29, 1919 Aug. 12, 1919 Sept. 9, 1919 Oct. 7, 1919 Jan. 2, 1920 Jan. 15, 1920 Feb. 2, 1920 Feb. 16, 1920 5-C 5-D 5-E 5-F 5-G 5-H 5-J 5-K A-1920 B-1920 C-1920 D-1920 Totals.. _ Per cent of total bank subDistrict scriptions Per cent of total in Amount 572 533 548 560 496 515 440 290 393 480 290 90 76.68 71.44 73.46 75.07 66.49 69.03 58.98 38.87 52.68 64.34 38.88 12.06 57.40 58.96 57.17 53.74 58.09 54.02 49.23 56.92 58.64 56,42 60.89 51.38 $38,026,000 29,714,500 34,749,000 31,762,000 29,758,000 28,793,500 30,521,500 27,889,500 26,576,500 25,570,000 23,802,500 4,099,500 5,207 58.16 56.07 8331,262,500 STATE BANKS Per cent of total Number of Banks in District 449 407 407 441 385 345 341 225 262 310 234 46 3,852 53.84 48.80 48.80 52.88 46.16 41.37 40.89 26.98 31.41 37.17 28.06 5.51 38.49 Per cent of total bank subscriptions 12.90 13.61 13.16* 15.13 12.70 14.27 13.84 11.47 13.58 12.49 12.94 6.69 12.73 Amount $8,547,000 6,857,500 7,999,500 8,944,000 6,503,500 7,607,500 8,583,000 5,623,000 6,158,500 5,658,000 5,059,000 534,000 $78,074,500 TRUST COMPANIES Date Jan. 2 Jan. 16 Jan. 30 Feb 13 Feb. 27 Mar. 13 Apr. 10 May 1 Aug. 1 Aug. 15 Sept. 2 Dec. 1 Series 5-C 5-D 5-E 5-F 5-G 5-H S-J 5-K A-1920 B-1920 C-1920 D-1920 Totals Maturity June 3, 1919 June 17, 1919 July 1, 1919 July 15, 1919 July 29, 1919 Aug. 12, 1919 Sept. 9, 1919 Oct. 7, 1919 Jan. 2, 1920 Jan. 15, 1920 Feb. 2, 1920 Feb. 16, 1920 District Per cent of total bank subscriptions 155 140 160 171 145 132 134 104 97 106 76 30 67.10 60.61 69.26 74.03 62.77 57.14 58.01 45.02 41.99 45.88 32.90 13.00 27.81 25.08 28.03 29.56 27.51 30.12 35.62 29.54 25.96 30.61 25.21 40.35 $18,423,500 12,641,500 17,039.000 17,466,500 14,093,500 16,054,500 22,085,500 14,475,500 11,768,500 13,872,500 9,853,500 3,220,000 1,450 52.31 29.62 $170,994,000 Number of Banks Per cent of total in Amount SCHEDULE 18.—Continued. MISCELLANEOUS AND PRIVATE BANKS Per cent of total in District Per cent of total bank subscriptions 114 105 99 104 93 91 91 57 7 10 14 2 53.43 51.47 45.10 50.00 42.66 42.65 42.65 27.94 3.43 4.90 6.86 1.00 1.89 2.35 1.64 1.57 1.70 1.59 1.31 2.07 1.82 1.58 $1,253,500 1,186,500 999,000 927,500 870.000 844,500 810,000 1,012,000 826,500 218.500 373,500 125,000 787 31.00 1.58 9,446,500 Number of Banks Total subscriptions each issue Amount .48 .96 5-C 5-D 5-E 5-F 5-G 5-H 5-J 5-K A-1920 B-1920 C-1920 D-1920 $66,250,000 50,400,000 60,786,500 59,100,000 51,225,000 53,300,000 62,000,000 49,000,000 45,330,000 45,319.000 39,088,500 7,978.500 589,777,500 RECAPITULATION District Banks Number of banks in District National Banks State Banks _ Trust Companies Private and Miscellaneous Banks Banks subscribing 746 834 231 Per cent of total banks subscribing in District Per cent of total of banks subscriptions Total subscriptions 56.07 12.73 29.62 $331,262,500 78,074,500 170.994,000 572 449 171 76.68 53.84 74.03 204 114 53.43 1.58 9,446,500 2,015 1,306 64.81 100.00 589,777,500 ANALYSIS OF PAYMENT Total subscriptions for District, all loan issues Paid by cash Payment by credit to War Loan Deposit Account $137,959,967 $424,518,533 $589,777,500 Paid by Exchange of Certificates $27,299,000 39 Per cent by cash 23.38 Per cent by credit Per cent byexchange 72.00 4.62 SCHEDULE 19.—Victory Liberty Loan. Dated May 20, 1919; 3J£and 4Ji%; Callable June 15 and December 15, 1922, payable May 20, 1923. ANALYSIS OF SUBSCRIPTIONS Number subscribing Per cent Notes full paid each Installment date Amount Cash sales May 20 June 3 July 15 Aug. 12 Sept. 9 Oct. 7 Nov. 11 $443,802,250 Total allotment for district National banks State banks Trust companies Miscellaneous banks Individuals Totals 740 822 229 107 61 53.32 17.89 27.13 1.66 236,666,900 79,379,400 120,354,650 7,359,150 42,150 1,959 100.00 $443,802,250 $ 27.923,550 199,663,200 111.755,750 41,038,100 11,413,600 8,884,850 14,863,550 28,259,650 $443,802,250 PERCENTAGE OF BANKS SUBSCRIBING Number Total in subDistrict Per cent scribing National banks State banks.. . Trust companies Miscellaneous _ . 740 822 229 107 746 834 231 204 99.20 98.56 99.16 52.45 1,898 2,015 94.19 . Totals.. ANALYSIS OF PAYMENTS. Paid by cash Cash sales May 20 June 3 July 15 Aug. 12 Sept. 9 Oct. 7 Nov. 11 Paid by Paid by credit to War certificates Loan Deposit of indebAccount tedness Total payments each installment date $ 9,092,150.00 $17,013,900.00 $ 1,817,500 $27,923,550.00 39,060,020.06 70,279,764.94 116,414,500 225,754.285.00 22,839,257,87 40.497.867.13 33,164,500 96,501,625.00 15,746,890.37 2,585,000 42,885,470.00 24,553.579.63 7,652,414,35 1.758,000 19.532,480.00 10,122,065.65 5,635,447.21 1.145.500 13.955,560.00 7,174,612.79 4.199,326.56 11,593.660.00 7,394,333.44 2.240,370.27 5,655,620.00 3,415,249.73 Totals... 106,465,876.69 180.451,373.31 156.885,000 443.802,250.00 40 Percent Percent Percent by by by certicash credit ficates 32.56 17.30 23.67 36.72 39.18 40.38 36.22 39.61 60.93 31.13 41.96 57.25 51.82 51.41 63.78 60.39 6.S1 51.57 34.37 6.03 9.00 8.21 23.99 40.66 35.35 SCHEDULE 20.—Certificates of Indebtedness—tax issues. NATIONAL BANKS Date Jan. 16 Mar. 15 June 3 June 3 July 1 July 1 July 15 Sept. 15 Sept. 15 Dec. 1 Dec. 15 Percent of Number Percent of total bank total of subscripof District tions Banks Maturity Series June July Sept. Dec. Sept. Dec. Mar. Mar. Sept. Mar. June T-2 T-3 T-4 T-5 T-6 T-7 T-8 T-9 T-10 TM-3 TJ-1920 17, 1919 16, 1919 15, 1919 15, 1919 15, 1919 15, 1919 15, 1920 15, 1920 15, 1920 15, 1920 15, 1920 Totals Amount 148 179 159 115 129 191 98 89 136 144 271 19.83 23.99 21.31 15.41 17.29 25.60 13.13 11.93 18.23 19.30 36.33 45.77 46.42 43.24 40.90 66.68 59.30 57.74 65.86 54.08 64.94 62.01 $35,999,500 21,441,000 26,931,000 13,861.000 20,370,500 24,561,000 16,786,000 5,788,000 29,097,500 14,640,500 35,966,500 1,659 20.21 55.18 $245,442,500 STATE BANKS 7.19 3.59 9.47 3.95 5.39 9.35 6.35 4.91 8.63 8.15 15.82 Percent of total banks subscriptions 1.69 2.08 4.21 2.40 3.28 9.31 5.59 9.90 1.87 7.22 4.40 $1,329,500 962,500 2,623,500 812,500 1,001,500 3,857,500 1,625,000 870,000 1,003,000 1,627,000 2,554,000 7.53 4.72 $18,266,000 Number Percent of of total in District banks 60 30 79 33 45 78 53 41 72 68 132 Totals.. _ _.691 Amount TRUST COMPANIES Number Date Jan. 16 Mar. 15 June 3 June 3 July 1 July 1 July 15 Sept. 15 Sept. 15 Dec. 1 Dec. 15 Series T-2 T-3 T-4 T-5 T-6 T-7 T-8 T-9 T-10 TM-3 TJ-1920 of Maturity June July Sept. Dec. Sept. Dec. Mar. Mar. Sept. Mar. June banks 17, 1919 16, 1919 15, 1919 15, 1919 15, 1919 15, 1919 15, 1920 15, 1920 15, 1920 15, 1920 15, 1920 71 79 76 45 47 66 46 36 64 45 76 Totals 651 41 Percent of Percent of total of total banks District subscriptions 30.73 52.25 34.20 51.35 32.90 52.47 19.48 55.77 19.48 29.76 28.57 31.03 19.91 36.11 15.58 24.09 27.72 43.48 19.48 27.24 32.90 32.21 25.54 39.62 Amount $41,087,500 23,715,500 32,678,500 18,904,000 9,093,000 12,853,500 10,496,000 2,117,000 23,394,500 6,141,500 18,679,500 $199,160,500 SCHEDULE 20.—Certificates of Indebtedness—tax issues—Continued. MISCELLANEOUS AND PRIVATE BANKS Number of Banks Percent of total in District 4 6 6 9 3 7 6 2 8 6 10 1.97 2.94 2.94 4.41 1.47 3.43 2.94 67 2.99 Percent of total banks subscriptions .98 T-2 T-3 T-4 T-5 T-6 T-7 T-8 T-9 T-10 TM-3 TJ-1920 $225,000 68,000 47,000 316,500 86,000 146,500 163,000 13,000 307,000 135,000 800,000 .29 .15 .08 .93 .28 .36 .56 .15 .57 .60 3.92 2.94 4.90 Total subscriptions each issue Amount . 1.38 $78,641,500 46,187,000 62,280,000 33,894,000 30,551,000 41.418,500 29,070,000 8,788,000 53,802,000 22,544,000 58,000,000 465,176,000 2,307,000 .48 RECAPITULATION Banks Number of banks in subscribing District District Banks 746 834 231 204 271 132 79 10 52.76 3.93 42.81 .50 13.45 6.55 3.92 .50 $245,442,500 18,266,000 199,160,500 2,307,000 2,015 492 100.00 24.42 465,176,000 National banks Trust companies .. Private and miscellaneous banks Totals Percent of Percent of Total total banks total banks subscrip- subscrib- subscriptions ing in tions District ANALYSIS OF PAYMENTS Total subscriptions for District, all tax issues Paid by cash Paid by credit to War Loan Deposit Account $58,040,882.44 $301,347,617.56 $465,176,000 Paid by exchange Percent by cash of Certificates $105,787,500.00 12.48 Percent by credit 64.78 Percent by exchange 22.74 SCHEDULE 21. CONVERSION* DEPARTMENT Number of pieces Amount Liberty loan bonds and notes - $86,745,350.00 .. 282,342 INTERCHANGE DEPARTMENT Liberty loan bonds and notes Amount Number o) pieces $606,669,500.00 4,137,712 WAR FINANCE CORPORATION Series A, 5% Gold Bonds, dated April 1, 1919, maturing April 1, 1920. Number subscribing Percent 190 103 64 6 20 59.05 9.38 25.04 3.39 3.14 11,543,000 1,832,000 4,895,000 663,000 615,000 383 100.00 19,548,000 Number subscribing Total in District Percent 190 103 64 6 746 834 231 204 25.47 12.35 27.71 2.94 363 2,015 18.01 Amount $19,548,000 Total allotment for district Investment bankers, e t c . - Total PERCENTAGE OF BANKS SUBSCRIBING Miscellaneous banks ._ - - Total . SCHEDULE 22.—Fourth Liberty Loan—third and fourth installments. ANALYSIS OF PAYMENT! Paid by cash Jan. 16 Jan. 30 Paid by credit Paid by Total payment Percent Percent Percent to War Loan certificates each installby by by DepositAccount of indebtedcash credit certifiment date ness cates $13,215,941.33 $27,316,743.67 $7,650,000 13,601,688.35 19,924,291.65 4,127,000 $48,182,685.00 37,652,980.00 27.43 36.12 56.69 52.92 15.88 10.96 47,241,035.32 11,777,000 85,835,665.00 31.24 55.04 13.72 Totals. 26,817,629.68 43 SCHEDULE 23.—Depositaries Department—Report for year ending December81,1919. Depositary banks January 1, 1919 New depositaries Depositaries discontinued 612 82 694 39 Depositary banks December 31, 1919 655 Total in depositary banks January 1, 1919 $28,340,058.56 Payment by depositary banks by credit to War loan deposit Ace. For treasury certificates of indebtedness, loan issues $424,518,532.30 For treasury certificates of indebtedness, tax issues 301,347,617.56 For Liberty loan bonds and notes 227,692,408.63 953,558,558.49 981,898,617.05 930,157,093.11 Withdrawals Total balances with depositary banks December 31, 1919 51,741,523.94 Largest aggregate deposits, June 9 Smallest aggregate deposits, December 1 Interest collected on daily balances $180,000,000 18,300,000 1,276,013.95 Securities pledged by depositary banks as collateral for deposits of public Valued as Collateral Par Value Total pledged January 1, 1919 Total pledged December 31, 1919.. Largest aggregate pledged June 10, 1919 Smallest aggregate pledged November 28, 1919. moneys. $151,729,000.00 $124,300,000.00 92,746,093.00 47,982,814.81 $228,210,894.00 78,632,725.00 •CHARACTER OF SECURITIES PLEDGED DECEMBER 31, 1919 United States bonds and certificates of indebtedness Municipal bonds Foreign Government and municipal bonds Corporation bonds Commercial paper TotaL Par Value Percent of Total Pledged $30,935,600 11,268,368 15,906,000 23,981,400 10,654,725 33.35 12.15 17.15 25.86 11.49 92,746,093 100.00 •Approximately same proportions, as to character of securities, were maintained during year 1919. SCHEDULE 24.—Sales of Treasury Savings Certificates, War Savings Stamps and Thrift Stamps 1919 MATURITY VALUES Treasury Savings Certificates January February.. March April May June July August September. October November. December.. Total for year $ 21,800.00 110,600.00 75,200.00 156,800.00 291,700.00 609.400.00 1,265,500.00 War Savings Stamps $1,154,065.00 257,270.00 427,885.00 240,645.00 105,995.00 142,355.00 119,515.00 115,535.00 82,940.00 65,355.00 52,920.00 60,000.00 2,824,480.00 44 Thrift Stamps Total for Month $58,723.25 21,304.25 20,155.00 14,254.50 10,061.75 13,047.25 5,817.25 6,615.50 10,677.75 8,037.00 8,187.50 9,989.25 $1,212,788.25 278,574.25 448,040.00 254,899.50 116,056.75 155,402.25 147,132.25 232,750.50 168,817.75 230,192.00 352,807.50 679,389.25 186,870.25 4,276,850.25 SCHEDULE 25.—Federal Reserve notes issued and redeemed during the year, and comparative statement oj outstanding notes, December 81, 1919, and December 81, 1918. 1919 Outstanding Dec. 31, 1918 Denominations Fives Tens-. Twenties Fifties Hundreds _ . - Total.. Total Outstanding Issued Redeemed $ 27,190,445 54,470.980 126,621,940 46,943.750 11,292,800 $23,425,000 38,710,000 64,680.000 27,600,000 6,850,000 800,000 1,000,000 200,000 300,000 $21,973,015 37,994.900 64,683,480 18,955,150 2,652,100 5,500 19,000 $ 28,642,430 55.186.080 126,618,460 55,588,600 15,490,700 794,500 981,000 200,000 300,000 266,519,915 163,565,000 146,283,145 283,801,770 SCHEDULE 26.—Federal Reserve batik notes. 1919 Outstanding Dec. 31, 1918 Denominations Ones Twos Fives.. ._ - Total Issued Redeemed Total Outstanding $4,791,610 1,494,390 4,314,000 $17,300,000 4,808,000 1,115,000 $6,016,980 2,025,020 3,290,000 $16,074,630 4,277,370 2,139.000 10,600,000 23,223,000 11,332,000 22.491,000 SCHEDULE 27 •—Comparative statement of aggregate resources and liabilities of member banks, November 17,1919, to December 81,1918. '000 omited) RESOURCES Loans and discounts Overdrafts Acceptances and letters of credit U. S. Securities Liberty Loan Bonds All other Bonds, Securities, etc Banking House, Furniture and Fixtures, Other Real Estate Reserve with Federal Reserve Bank Cash and Due from Banks 5% Redemption Fund Other Assets Total Resources. Nov. 17, 1919 Dec. 31, 1918 si 370,216 1,291 26,817 356,921 453,041 60,737 10,883 129,506 318,749 5,421 20,296 $1,162,712 790 22,466 195,450 168,393 404,628 57,385 10,631 126,320 358,125 7.455 19,272 2,753,878 2,533,627 158,303 158,013 58,993 90,028 237,942 1,180,444 653,496 27,265 20,325 116,827 27.132 25,110 155,250 150,440 43.869 89,687 266,312 1.083,077 551,708 31,950 21,237 81,852 22,740 35,505 2:753.878 2,533,627 LIABILITIES Capital. Surplus Undivided Profits Circulation Due to Banks and Bankers Demand Deposits Time Deposits U. S. Deposits Bonds Borrowed Bills Payable Acceptances and Letters of Credit, Other Liabilities Total Liabilities Liberty Loan Bonds included in U. S. Securities. 45 SCHEDULE 28A.—Transit department check clearings and collection. Number of items On Treasurer of the United States - Amount 2,066,358 8,382,861 459,803 862,135 $2,453,245,427.17 1,709,975,824.72 521,100,021.33 257.772,409.56 11,771,157 4,942,093,682.78 -_ CINCINNATI BRANCH On On On On Items Amount 1,317,24? $1,457,319,986.23 5 454.374 808,495,484.50 117,601 141.99S.343.61 60,517,703.17 607,033 Cincinnati banks other banks in District No. 4__ banks in other districts Treasurer of the United States 7,496,250 2,468,331.517.51 PITTSBURGH BRANCH Items On On On On Pittsburgh banks other banks in District No. 4-_ banks in other districts Treasurer of the United States. 466.733 Amount $2,968,339,768.95 905,073,501.18 490,055.279.59 192.629,230.05 9,785,904 4.556,097,779.77 2,644,836 6,146,935 527,400 Checks draun on the Treasurer of the United States, handled by The Federal Reserve Bank of Cleveland and its branches during the year. January February March April May June July August September October November December Total Items 174,079 138,733 192,125 239,691 196,265 189,168 150.705 109,403 153,948 160,186 106,079 125,519 Amount $67,902,212.50 57,427,732.76 62,104,849.36 55,212,702.90 40,667,746.99 37,809,670.42 53,004,190.13 27,599,362.07 31,948,345.28 22.838,233.67 23,647,176.90 30,757,119.80 1,935,901 510,919,342.78 Volume of Checks handled for members and other Federal Reserve Banks by The Federal Reserve Bank of Cleveland and its branches January 1, 1919, to December 31, 1919. Items 1,955,262 1.711,943 2,360,549 2,298,871 2,249,897 2,262,729 2,417,687 2,379,938 2,529,103 2,949,818 2,713,967 3,223,547 Amount $1,010,944,140.04 805,684,332.52 1,012,129,711.99 884,821,640.71 914,520,810.89 984,199,475.76 966,888,795.74 934,651,166.56 1,113,295,382.81 1,084,012,327.22 985,811,912.22 1,269,563,283.60 29,053,311 11,966,522,980.06 January February. _ March April May June July August September. October... NovemberDecember. Total Daily Average Items Amount 75.202 $38,882,466.92 75,519 35,644,378.07 90,788 38,928,065.86 89,558 34,525,913.35 86,535 35,173,877.34 39,367,979.03 90,509 37,188,030.60 92,989 35,948,121.80 91,536 44,531,815.31 101,164 40,746,210.07 100,727 41,747,493.75 114,772 48,829,357.07 123,983 NOTE:—This schedule includes Government checks scheduled under "checks drawn on Treasurer of the United States." Items handled by both parent bank and branches and duplicated in above schedule, 745 914; amount $504,016,560.77. 46 SCHEDULE 28B.—Showing growth of clearing operations at parent bank and branches. COMPARISON OF AVERAGE NUMBER OF ITEMS HANDLED JANUARY 1919 DECEMBER 1919 Cincinnati Cleveland January, 1919 December, 1919 .. Increase in daily average Pittsburgh 30,451 50,412 23,402 31.324 24,349 42,247 19,961 10,922 17.898 CLEARING HOUSE EXCHANGES AT PARENT AND BRANCH BANK CITIES Total Exchanges Cleveland Pittsburgh Cincinnati . ' Total Percentage received from Federal Bank Received from Federal Bank $5,481,998,824 7,276,699,489 3,133,811,303 $2,450,643,095 2,968,338,732 1,459,840,395 45% 41% 47% 15,892,509,616 6,878,822,224 43% RECORD OF HIGH CLEARING HOUSE BALANCES. CLEVELAND PITTSBURGH June 28, 1918 ..$22,178,734.86 Mar. 17, 1919 ..,20,789,942.13 Dec. 16,1919. . .19,954,078.12 Dec. 17,1919. ..19,588,867.07 June 18, 1919 ..19,350,708.06 Mar. 19, 1918 ..17,506,842.07 Sept. 17,1919 ...15,576,868.24 Dec. 18,1919 ...15,259,602.97 Mar. 20, 1919 ..-15,198,498.78 Sept. 18,1919 ...14,864,318.74 Dec. 29,1919 ...14,673,239.91 Jan. 17,1919 ...14,388,653.34 CINCINNATI June 18, 1918.$50,369,812.81 June 18, 1919_..24,662,492.38 Dec. 18, 1919..22,088,883.62 Sept. 15, 1918.-21,236,504.84 June 26, 1918_.20,152,726.15 Mar. 17, 1919.-19,212,795.95 Sept. 16, 1919_.18,067,387.26 Dec. 1, 1919--17.323.837.77 Oct. 26, 1918..16,081,370.46 Mar. 20, 1918.-15,773,908.52 Mar. 23, 1918..15,702,355.51 Oct. 20, 1919.-15,691,936.03 Sept. 15,1919 -$10,425,237.35 Mar. 17, 1919 -. 9,765,223.95 Sept. 16,1919 .. 9,168,894.89 Dec. 16,1919. .. 8,863,581.96 Dec. 15,1919. .. 8,240,788.64 Oct. 26,1918. .. 7,974,937.90 June 28, 1918.... 7,894,208.62 June 18, 1919. .. 7,846,790.72 Dec. 1, 1919 .. 7,738,451.55 Oct. 17.1919 . 7,546,039.50 Oct. 20,1919 .. 7,523,353.25 Nov. 29, 1919 .. 7,468,529.34 SCHEDULE 29.—Operations of money department. RECEIPTS Cleveland Pittsburgh Cincinnati Non-members Non-members $111,189,309.20 187,865,881,01 78,580,063.49 $2,886,821.50 2,269,024.00 504,912.29 $102,945,982.00 200,867,130.50 54,924,167.91 $1,920,671.00 911,098.00 554,310.48 377,635,253.70 5,660,757.79 5,660,757.79 358,737,280.41 3,386,069.48 358,737,280.41 383,296,011.49 Total DISBURSEMENTS Members Members Total 362,123,349.89 ALL RECEIPTS AND DISBURSEMENTS Receipts Cleveland Pittsburgh Cincinnati Total Disbursements $179,732,591.09 282,609,376.26 143,218,468.22 $208,049,590.72 277,053,1< 1.45 143,429.124.80 605,560,435.57 628,531,886.97 SCHEDULE 30.—Comparative statement of employees. December 31, December 31, 1918 1919 Bank Transit and bookkeeping. Fiscal Agency 124 76 153 116 108 399 377 122 85 64 68 606 509 199 . Total Cleveland Pittsburgh . . Cincinnati _ Total SCHEDULE 31.—Discount rates in effect during the year 1919. Nov. 10 1919 Apr. 5 1919 Jan. 1 1919 MEMBER BANKS COL- Secured by United States Liberty LATERAL NOTES (Ma- Loan Bonds or Victory Notes, or turity must not exceed 15 by customers' notes secured in like days) 4% Secured by United States Treasury 4K% certificates of indebtedness, or by customers' notes secured in like manner.. 4% Secured by United States Treasury 4 J i % certificates of indebtedness, or by customers' notes secured in like manner 4% Secured by War Finance Corporation Bonds . . . . . SK% Secured by commercial paper REDISCOUNTS (Maturity Secured by United States Liberty must not be more than 90 Bonds or Victory Notes days from date of rediscount) Secured by United States Treasury certificates of indebtedness of all issues 4 V^y Secured by War Finance Corporation Bonds . . . Commercial Paper Trade Acceptances and Bankers' Acceptances REDISCOUNTS OF AGRICULTURAL OR LIVE STOCK P A P E R Rate for maturities from 1 to 90 days (Maturity must not exceed 6 months from the date of Rate for maturity from 91 days to 6 rediscount) months. 48 : : : : TABLE OF CONTENTS TEXT MATTER Branches, operation of Business and banking conditions Clearing and collection operations Discount operations Federal Eeserve Bank Notes Federal Eeserve Notes Fiscal Agency operations Liquidity of banks, policy to be pursued in restoring Member banks, condition of Membership, movement of Miscellaneous Money department, operation of National bank members, relations with New building Personnel Eeserve position Eesults of operation State banks and trust companies, relations with Page 13 17 14 5 12 11 11 12 12 8 16 13 9 15 15 7 5 10 GRAPHS Earning assets 24 Earning assets, movement of Earnings and expenses Federal Eeserve Notes outstanding and in actual circulation; rates of 21 23 gold reserve to net deposit and Federal Eeserve Note liability Gold reserve 25 22 Net deposit and note liability; Federal Eeserve Note circulation; Cash reserves; reserve rates 19 Resources, member bank reserves, and Government deposits 26 49 TABLE OF CONTENTS—Continued. SCHEDULES 10 18 20 28A 28B 21 23 31 12 13 4 3 15 14 30 26 25 17 22 5 6A 6B 16 . 16 16 27 29 2 7 8 9 16 1 24 11 19 Page Acceptances purchased in open market and acquired from other Federal Reserve Banks 31 Certificates of Indebtedness—loan issues 38 Certificates of Indebtedness—tax issues 41 Check clearings and collection 46 Clearing operations at parent bank and branches 47 Conversions 43 Depositaries department 44 Discount rates, 1919 48 Earning assets, Daily average 32 Earning assets, Daily average, by months 32 Earning assets, Daily average, and rate per annum 29 Earnings and expenses 28 Earnings, Average rate, by months 33 Earnings, total, by months 3"2 Employees, Comparative s t a t e m e n t of 48 F e d e r a l Reserve B a n k Notes 45 F e d e r a l Reserve Notes 45 F i d u c i a r y powers, B a n k s g r a n t e d 35 Fourth Liberty Loan 43 Loans, discounts and investments 29 Loans and rediscounts, by states 30 Loans and rediscounts, by classes 30 Member banks in District No. 4 34 Member banks, liquidated during 1919 34 Member banks, New national and state " 33 Member banks, comparative statement 45 Money department, operations of 47 Profit and loss account 28 Rediscounts and loans, Comparison of 31 Rediscounts and loans to state bank members, comparison of 31 Rediscounts for other Federal Reserve Banks 31 State banks admitted to system • 33 Statement of condition 27 Treasury Savings Certificates, War Savings Stamps and Thrift Stamps, Sales of 44 U. 8. Government securities purchased 32 Victory Liberty Loan 40 50