View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Federal Reserve Bank
of Cleveland




1926

TWELFTH ANNUAL REPORT
TO THE

FEDERAL RESERVE BOARD

ANNUAL REPORT
of the

Federal Reserve Agent
of the

Fourth Federal
Reserve District
to the

Federal Reserve Board

Covering Operations
for the
Calendar Year
1926

FEDERAL RESERVE BANK OF CLEVELAND







LETTER OF TRANSMITTAL
February 10, 1927.
SIR:
I have the honor to transmit to you herewith the twelfth annual
report of the Federal Reserve Bank of Cleveland, covering operations for the calendar year 1926.
Respectfully,
GEORGE D E C A M P ,
Federal Reserve Agent.
HON. D. R. CRISSINGER, Governor,
Federal Reserve Board,
Washington, D. C.







Directors and Officers, 1927
DIRECTORS
CLASS A
O. N. SAMS, Hillsboro, Ohio, 1927
CHESS LAMBERTON, Franklin, Pa., 1928
ROBERT WARDROP, Pittsburgh, Pa., 1929

CLASS B
JOHN STAMBAUGH, Youngstown, Ohio, 1927
R. P. WRIGHT, Erie, Pa., 1928

G. D. CRABBS, Cincinnati, Ohio, 1929
CLASS C
W. W. KNIGHT, Toledo, Ohio, 1927
L. B. WILLIAMS (Deputy Chairman), Cleveland, Ohio, 1928
GEO. DECAMP (Chairman), Cleveland, Ohio, 1929

OFFICERS
GEO. DECAMP, Chairman of the Board E. R. FANCHER, Governor
and Federal Reserve Agent
M. J. FLEMING, Deputy Governor
w tr u
A • * * T? J i F - J- ZURLINDEN, Deputy Governor
W H. FLETCHER, Assistant Federal H R STRATER, Cashier and Secretary
Reserve Agent and Manager, Ex- w < F TAYLOR, Assistant Cashier
amination Department
c w . ARNOLD, Assistant Cashier
J. B. ANDERSON, Assistant Federal ft H. WAGNER, Assistant, Cashier
Reserve Agent and Manager, Sta- c LB. CLOUSER, Assistant Cashier
D
tktiral DenartrnMit- - BICKFORD, Assistant Cashier
tistical Department
G A S T E P H E N S O N > Manager, DepartF. V. GRAYSON, Auditor
ment of Bank Relations
CINCINNATI BRANCH
DIRECTORS

OFFICERS

CHAS. W. DUPUIS

~ ~. ,

FRED A. GEIER
B

^.

F

H. KROGER

r

~

, ,

~.

- MCCOMBS, Managing Director
B. J. LAZAR, Cashier

E. S. LEE
C. F. MCCOMBS

H. N. OTT, Assistant Cashier

JOHN OMWAKE

_

GEO. M. VERITY

,

_

.,

BRUCE KENNELLY, Assistant Cashier

PITTSBURGH BRANCH
DIRECTORS
A. E. BRAUN

OFFICERS
.

J. C NEVIN, Managing Director

CHARLES W. BROWN

J

^SSS

T. C. GRIGGS, Cashier

R. B. MELLON
JOSEPH R. NAYLOR

- F - COBUN, Assistant Cashier
T. M. JONES, Assistant Federal

J. C. NEVIN

Reserve Agent




F




TWELFTH ANNUAL REPORT
FEDERAL RESERVE BANK OF CLEVELAND
Despite a considerable degree of irregularity in certain of the
significant items in the condition reports of both the Federal
Reserve Bank of Cleveland and the member banks in this district, the year 1926 has been one of relative stability. Gold reserves and bills discounted have been subject to wide and somewhat violent fluctuations, while the movements of deposits in
member banks, both demand and time, have exhibited somewhat
unusual characteristics.
The demand for accommodations at the Federal Reserve Bank
of Cleveland was normal during the first nine months of the
year, following which, partly to offset heavy withdrawals at
member banks, there occurred a sharp increase in the volume of
bills discounted. From a low point of $30,000,000 in late July,
discounts rose to approximately $100,000,000 in late December.
The increase was particularly noticeable in the months of October and December. The peak reached in the latter month was
the highest since early in the year 1922 with the exception of one
point in December, 1925.
Quite contrary to the experience of this bank in previous years,
there was a sharp decline in gold reserves between March and
June, followed by an almost equally sharp recovery in the following two months. From this point on there was an almost continuous decline for the balance of the year, apparently caused
by an unusual excess of transfers of funds out of the district
which accounts in part for the sharp increase in discounts that
occurred in the late months of the year. (Chart I.)
RESULTS OF OPERATIONS
The seasonal reduction in borrowings at the Federal Reserve
Bank of Cleveland which occurred in the first two months of the
year was much sharper than that of any previous year since 1922,
discounts falling from $71,000,000 in early January to $38,000,000
in early February. The customary spring demand carried discounts nearly to the $70,000,000 mark in March, after which a
practically continuous decline set in, culminating in a low of
$30,000,000 in late July. From this point on, they increase
seasonally to a high point of $100,000,000 on December 22.
Holdings of bankers acceptances showed a continuous increase throughout the year, from $5,000,000 in January to a peak




7

of $36,000,000 in December. The movement in this particular
item was almost exactly the reverse of that of the previous year,
in which the high point was reached in early January and the
low in late December.
Total bills and securities fluctuated within a somewhat wide
range, from a low of $87,000,000 in early February to a high of
more than $170,000,000 in late December.
The reserve ratio fluctuated within a narrow range throughout
the year until early October, when, following the increase in
discounts, it dropped rather sharply from about 75 per cent to
a low of 61 per cent in December.
The discount rate of this bank for all classes of paper and for
all maturities remained unchanged at 4 per cent throughout the
year.
The tabulation below gives in comparative form a statement of
the various classes of rediscounts and loans in 1925 and 1926.
More detailed statistics concerning the activities of the discount
and other departments of this bank may be found in the Annual
Report of the Federal Reserve Board.
Comparison of various classes of rediscounts and loans—1926 and 1925
(Amounts in thousands)
1926
Secured by U. S. Government obligations
Commercial and industrial
Bankers' acceptances
Trade acceptances
Agricultural and live stock
Demand and sight drafts

$3,052,549
643,451
" 4*723
3,655

Total

$3,704,378

1925
$2,426,270
720,129
5
7,826
4,480
108
$3,158,818

MEMBER BANK CREDIT

The outstanding feature of credits extended by member banks
is a continuation of the quite marked increase in loans secured
by stocks and bonds which occurred in the year 1925. At the
close of the year under review, this figure for 74 reporting member banks in the Fourth Federal Reserve District was approximately $155,000,000 in excess of January, 1925. This has not
been accompanied by a corresponding increase in commercial
loans, which in the same period increased approximately $80,000,000. Investments of these same banks have been slightly
reduced, so that of the increase of approximately $235,000,000 in
total loans, discounts, and investments of reporting member
banks in the principal cities of this district, approximately twothirds is accounted for by the increase in collateral loans.
Demand deposits in reporting member banks in this district,
after remaining unchanged for a period of about twenty months,
showed a quite sharp increase (about $70,000,000) from April




8

to August of 1926. At this point occurred a gradual decrease
carrying the total at the end of the year to approximately the
previous level.
Time deposits show a much sharper increase in the first seven
months of the year from a low point of $748,000,000 in January
to a high of $836,000,000 in July, which was followed by a slight
but almost continuous decline to the end of the year. This
latter movement is contrary to that which occurred in the United
States as a whole, where time deposits show a continuous but
moderate increase throughout the year.
EARNINGS AND EXPENSES OF MEMBER BANKS

An analysis of earnings and expenses of Fourth District member banks for the years ended June 30, 1925 and 1926, shows a
rather sizeable increase in the percentage of losses, and a substantial decrease in the percentage of earnings carried to undivided
profits. Salaries and wages are practically unchanged, while interest on borrowed money shows an increase of approximately 50 per
cent. Interest paid to depositors consumes 51.3 per cent of expenses, this figure remaining unchanged from that of the year
before.
A distribution of losses shows a very decided increase in the
percentage losses on loans, the figures being 45.4 per cent of total
losses for 1925 and 58.2 per cent for 1926. The percentage loss on
securities was reduced from 33 to 25.3 in 1926. "Other" losses
show a decrease from 21.6 to 16.5. For the fiscal year ended
June 30, 1926, the distribution of gross income was as follows:
Expenses
71.5 per cent
Losses
7.9 per cent
Dividends
13.6 per cent
Undivided Profits
7.0 per cent
Chart II shows in graphic form the distribution of income
and the distribution of expenses and losses for the year.
MOVEMENT OF MEMBERSHIP

During the year under review there were admitted to membership in the System from this district seven new banks, six of
them national banks and one a state bank. One of the national
banks thus admitted merged with another national bank within
two months of being admitted.
Withdrawals from membership numbered twelve, seven national banks and five state banks being affected. Of these
twelve withdrawals, two, both national banks, were voluntary
liquidations, and three, all state banks, were voluntary withdrawals.
The seven remaining withdrawals are accounted for by mergers
with existing institutions. One state bank was absorbed by a na-




tional bank while a second state bank merged with another
state bank member. Three national banks merged with other national banks, while two other national banks merged with non-member state banks.
The total number of members in this district on December
31, 1926 was 858, of which 746 were national and 112 were state
banks. This compared with 863 members on December 31, 1925,
of which 747 were national and 116 state bank members.
The total resources of the new state bank and the six new
national banks at date of admission approximated $8,000,000.
The capital stock of this bank on December 31, 1926 was $13,617,750 as compared with $13,175,800 a year ago and the surplus account totaled $23,745,855 on December 31, 1926 as compared with $22,893,598 on December 31, 1925. Member bank
reserves have increased nearly 6.5 million in the same period.
Fourth District members
Dec. 31. 1925 Withdrawn
National banks
State banks.
Total membership

Admitted

Dec. 31, 1926

747
116

7
5

6
1

746
112

863

12

7

858

RELATIONS WITH MEMBER BANKS

During the calendar year 1926, more than 1600 banks were
visited by members of the bank relations staff. Of this number 1526 were member banks, and 83 were non-members. Eight
special visits on matters of more than routine importance were
also made.
Representatives of this department attended 3 bank conventions and 16 group meetings. Members of the official staff or
of this department also attended the opening of new member
bank buildings on 19 occasions.
During the year more than 3,000 visitors were conducted
through the main office building.
In January, the territory covered by travelling representatives
of this bank was redistricted, and three field men are now covering the entire district which formerly required the services
of four men.
BANK EXAMINATION

The examination department of this bank has continued to act
in close cooperation with and to enjoy cordial relations with the
office of the Comptroller of the Currency and the banking departments of the four states included in this district. It has also
continued to carry out the broader program of investigation inaugurated last year.
10



During the year this department conducted 68 examinations,
three of which were investigations of national banks and made
in conjunction with the national bank examiners, and 64 were
investigations of state banks made in conjunction with the examiners of the several states. In one instance, that of a state bank,
our examiners conducted an examination independently.
During 1926, members of the staff investigated one application
for membership, and investigated and made recommendations
with respect to the establishment of branches in nine instances.
There were 13 instances of investigation and recommendation
regarding the granting of fiduciary powers to national banks and
14 instances of investigation and recommendation regarding interlocking directorates.
FEDERAL RESERVE NOTES

The volume of Federal Reserve notes issued by this bank
showed a very marked decline during the entire first half of the
year reaching a low point of $187,000,000 in early August. From
that date on the upward trend was quite rapid reaching a high
point in December, about $10,000,000 less than the December
peak of a year ago. This movement resembles that of no other
year in the history of this bank.
The movement of Federal Reserve notes in this district offers
also a marked contrast to the trend of notes in circulation of the
entire System. Following the usual seasonal decline in January, the note circulation of all twelve Federal Reserve banks
shows a gradual and continuous increase from the low point
in February to a December peak that was $20,000,000 above the
December high of the year previous.
On December 31, 1926 the volume of notes of this bank in
circulation was $219,960,625 as compared with $232,614,585 on
December 31, 1925. During the year the Federal Reserve Agent
received from the Comptroller of the Currency $155,940,000 in
new notes as compared with $175,940,000 during 1925. The total
of new notes issued to the bank and of fit notes reissued to the
bank was $189,020,000 compared with $212,640,000 of similar
issues and reissues during the previous year. Fit notes redeemed
by the Federal Reserve Agent totaled $34,500,000, and unfit
notes returned to Washington for destruction totaled $161,233,150, as compared with $26,550,000 and $153,861,810, respectively,
a year ago.
The total currency receipts of this bank for 1926 exceeded
the total currency disbursements by nearly 9l/2 million dollars,
and the combined currency receipts and disbursements for the
year 1926 were 132 million in excess of the figures reported last
year. Currency receipts from members and non-members and
currency disbursements to the same are both larger than the
figures reported in 1925. Total currency operations with members and non-members for the year just passed were $1,771,046,674 as compared with $1,653,167,713 for 1925.
11



The tabulation below compares the principal operations of the
money department of this bank and its branches.
Federal Reserve notes
1926

Outstanding December 31
I n actual circulation December 31
New notes received from Comptroller
Notes issued and reissued to bank
Fit notes redeemed by Federal Reserve Agent
Unfit notes returned for destruction

1925

$256,123,715
219,960,625
155,940,000
189,020,000
34,500,000
161,233,150

$262,836,865
232,614,585
175,940,000
212,640,000
26,550,000
153,861,810

Currency operations—Total receipts and disbursements
Receipts
Cleveland
Pittsburgh
Cincinnati

Disbursements

$492,447,026
585,089,177
207,067,234
$1,284,603,437

Total

$485,119,062
586,859,755
203,357,980
$1,275,336,797

Currency operations wtth members and non-members
Receipts
Cleveland
Pittsburgh
Cincinnati
Total

Disbursements

$314,880,926
439,255,246
132,978,945

$302,108,015
449,625,192
132,198,350

$887,115,117

$883,931,557

CHECK COLLECTION AND CLEARING OPERATIONS

The amount of work handled by the transit department of this
bank during 1926 shows a decided increase over the amount of
work handled during the year previous. The total number of
items which this department handled during the year was 72,194,006 which figure is 4,488,682 items in excess of the 1925
figure, or an increase of 6.6 per cent. The amount represented
by these items shows approximately the same rate of increase.
The total amount of check collections in 1926 was $28,297,848,000
as compared with $26,363,252,000 in 1925, or an increase of 7.3
per cent. These figures do not include duplications, that is,
items handled by both the main office and branches to the number of 1,296,395 and to the amount of $316,385,000.
Of the 72,194,006 items handled 7,707,245 were drawn on Cleveland banks, 6,101,851 on Pittsburgh banks and 3,387,729 on Cincinnati banks. The items drawn on other banks in this district
totaled 49,963,019, those drawn on banks in other districts totalled 2,692,652 and those drawn on the Treasurer of the United
States 2,341,500. The number of items handled by each of the
three offices, Cleveland, Pittsburgh and Cincinnati was 31,439,940, 23,400,454 and 17,353,612 respectively.
12



Transit department check clearings and collections for year 1926
Cleveland
No. of Items
On
On
On
On

Amounts

7.707,245
22,057.001
713,024
962,670
31,439,940

$10,151,298,798.77
$128,810,811.76

$5,029,798,019.64
1,152.105.986.02
92.316,641.78
110,287,265.32

17,353.612

$6,384,507,912.76

237,161

$55,469,059.61

6,101,851
15.397,124
1,281,520
619,959

$9,568,486,065.31
1,507,872,578.24
618.374.718.73
67,307,813.99

23,400,454

Total.
Items sent to Cincinnati and Pittsburgh branches

493,486

3,387,729
12,508,904
698,108
758.871

Cleveland banks
other banks in District No. 4
banks in other districts
Treasurer of United States

$7,473,296,382.08
2,453,858,217.38
136,003,909.77
88,140,289.54

$11,762,041,176.27

565,748

$132,005,059.12

Cincinnati
On Cincinnati banks.
On other banks in District No. 4
On Treasurer of United States

. .

Total
Items sent to Main Office and Pittsburgh branch.

Pittsburgh
On
On
On
On

Pittsburgh banks
other banks in District No. 4
banks in other districts
Treasurer of United States
Total

Items sent to Main Office and Cincinnati branch

Recapitulation
Total number of items handled
Total amount of items handled .
Items and amounts handled by both parent bank and
branches and not duplicated in above figures

72 ,194,006
1,296,395

$28,297,847,887.80
$316,384,930.49

COLLECTION DEPARTMENT

During the year under review 373,453 items amounting to
$502,476,366.19 were handled through the non-cash collection
department of this bank. This was a decrease of two per cent
in the number of items handled and an increase in the amount of
items handled as compared with 1925.
Of this total 269,567 items aggregating $267,022,921.16 were
paid through the three offices of this bank. Approximately 84
per cent of the items handled was collected which percentage
is somewhat smaller than that of last year when 88 per cent of
the items handled was collected.
Collecting banks made charges on 32,243 items which aggregated $14,938,620.53. The collection charge amounted to $13,565.28 which was at a rate of slightly less than one-tenth of one
per cent. There were collected without cost 237,324 items
amounting to $252,084,300.63.
13



Member banks in this district continue to take advantage of
the direct routing plan and forwarded to other Federal reserve
banks and branches for collection during the past year 60,599
items of which 53,408 items amounting to $71,158,254.54 were
paid, and 7,191 items totaling $4,675,782.48 were returned unpaid.
Collections
No. of Items
Cleveland
Cincinnati
Pittsburgh..

. . .

Total

Amount

329,952
18,490*
25,011*

$404,578,736.53
49,900,028.78*
47,997,600.88*

373,453

$502,476,366.19

•Represent collections payable only in cities of Pittsburgh and Cincinnati.

FISCAL AGENCY OPERATIONS
Two series of Treasury certificates of indebtedness and an
issue of Treasury bonds of 1946-56 were offered for subscription
during 1926. The certificates in each case were offered at par
and the amount of the September 15 offering alloted in the
Fourth District was $25,953,000 while the amount of the December 15 offering alloted was $9,064,500. The Treasury bonds,
bearing 3^4 per cent interest, were offered at 100*/? and the
amount allotted in this district was $51,090,000.
On March 1 the Secretary of the Treasury invited holders of
Third Liberty loan bonds to submit proposals for the sale of
such bonds to the Treasury, purchases to be made at the lowest
prices offered. The offers accepted and purchases made in this
district aggregated $1,737,600 face amount.
Government securities received for exchange consisted of 141,019 pieces in coupon form and 19,235 pieces in registered form,
aggregating $86,579,500. Against such receipts there were delivered 41,318 obligations in coupon form and 16,105 in registered form.
Government coupons redeemed during 1926 totaled 4,806,022,
aggregating $62,848,706. Government obligations presented for
redemption numbered 287,208 and had a value of $108,556,266.25.
Included in these figures are 70 pieces of Intermediate Credit
Bank debentures having a value of $700,000 and 335 pieces of
Federal Land Bank bonds valued at $3,326,000.
PERSONNEL
In the election of directors which occurred in 1926, Mr. Robert
Wardrop of Pittsburgh, and Mr. George D. Crabbs of Cincinnati,
were reelected as Class A and B directors, respectively, for terms
of three years beginning January 1, 1927. Mr. George DeCamp
was reappointed by the Federal Reserve Board as Class C director for a term of three years, and redesignated Chairman of the
Board and Federal Reserve Agent.
14



At the Cincinnati branch, Mr. A. Clifford Shinkle resigned as
a director in May, and in his place this bank apponted Mr. B.
H. Kroger, President of the Provident Savings Bank and Trust
Company of Cincinnati. In September, Mr. A. E. Anderson
also resigned, and in his place the Federal Reserve Board appointed Mr. Fred A. Geier, President of the Cincinnati Milling
Machine Company.
At Pittsburgh, Mr. A. L. Humphrey, President of the Westinghouse Air Brake Company, was appointed a director of the Pittsburgh branch by the Federal Reserve Board, for a term of three
years beginning January 1, 1927, succeeding Mr. J. D. Callery.
To fill the vacancy created at the Pittsburgh branch by the
appointment of Mr. George DeCamp (formerly Managing Director) as Chairman of the Board and Federal Reserve Agent,
Mr. J. C. Nevin, formerly Cashier and Secretary, was appointed
Managing Director, effective January 16th. Mr. Herman F.
Strater, formerly Assistant Cashier, was appointed Cashier and
Secretary to succeed Mr. Nevin.
On April 1, Mr. C. F. McCombs of the Department of Bank
Relations was appointed Managing Director at the Cincinnati
branch to succeed Mr. L. W. Manning, resigned.
There has been no material change in the number of employees
of this bank and its branches during the past year. On December 31, 1926 the entire personnel numbered 954 as compared with
941 a year ago.
GENERAL BUSINESS CONDITIONS

Prosperous conditions prevailed throughout 1926 in the Fourth
Federal Reserve District. The upswing in business which commenced about the middle of 1925 continued into 1926, and business remained at high levels until the fourth quarter, when a
moderate recession set in as a result of a sharp drop in automobile production and declining iron and steel operations.
The most important single industry in the district is iron and
steel, and numerous other lines are dependent upon it. During
most of the year, operations in this industry were at record levels,
particularly in the summer when a slackening ordinarily occurs.
Toward the end of 1926, however, a marked recession took place,
operations falling to 70 per cent of capacity or less. As pointed
out above, this may be largely accounted for by lower automobile
production.
The coal trade in the district started the year in the throes of
a depression of long standing, caused by excess productive
capacity. After the British coal strike had been going on for
some time, however, the export demand strengthened, and by
the end of October soft coal exports were nearly three times the
usual figure at that period. This, coupled with the normal winter
increase in householders' demand and the laying-in of supplies in
15



anticipation of a possible strike in April, 1927, caused a short
"boom" period in which production figures made a new record
for all time. Many union mines reopened, prices at the mine
soared to nearly double their previous figure, and wages were increased in some non-union fields. With the cessation of the British
strike, however, prices slumped quickly, although production
continued high.
Tire manufacturers in the Akron territory experienced a rather
poor first half-year, but conditions improved in the latter half.
The rapid decline in crude rubber prices early in the year, following their erratic course in 1925, was the main depressing factor.
Manufacturers found themselves burdened wth stocks of rubber
purchased at high prices on the one hand, while on the other,
public demand was at a minimum, awaiting tire price cuts following the fall in crude rubber prices. Stocks in manufacturers'
hands became abnormally large, and production schedules were
then reduced. An improvement began early in July, when tire
prices were cut generally; public buying picked up considerably
and continued high throughout the summer, so that factories
were again working at capacity. Operations in the fourth quarter fell off somewhat, owing partly to seasonal factors and partly
to decreased automobile output, but even so, they were approximately as large in the last half of the year as in the first.
In building, the record of this district was less satisfactory
than in the country as a whole. Very bad weather during the
first quarter hampered outside work, and a loss of 15 per cent
from last year in the value of building permits in this period
was shown by 28 large cities in the district. Conditions improved somewhat with the coming of better weather, but the
remainder of the year was just about able to hold its own with
1925, and for the first 11 months of 1926 the 28 cities showed
a loss of 13 per cent, while the loss for the United States was only
6 per cent, according to Bradstreet's.
Agricultural conditions were only fair on the whole. The crops
started well, but corn and tobacco were both caught by the excessive rains in the fall months. Corn production in the district
was 14 per cent under last year, and the burley tobacco crop in
Kentucky was inferior to normal, both in production and quality. Wheat made a better showing, as the season was pretty
well over before the heavy rains set in. Fruits of all kinds did
unusually well.
Department store sales for the year were between 1 and 2 per
cent larger than in 1925 . The holiday trade was at a high level,
as sales in both November and December were ahead of last
year. Wholesale sales compared unfavorably with 1925 except
in the case of drugs and shoes. The latter made a really notable
gain of about 11 per cent over 1925, as a result of the marked
revival which took place in the district's shoe industry about
the middle of the year.
16



Volume of operations in principal departments
No. of pieces handled

1922

1923

1924

1925

1926

117,437,000
139,105,000
58,143,000

12,092
34,932
16,021
128,085,000
161,788,000
67.433,000

11,036
28,427
10,059
135,693,000
176,965,000
68,039,000

13,177
29,668
8,672
145,093,000
183,291,000
68,888,000

12,530
26,547
11,616
151,404,000
184,583,000
73,487,000

7,921.000
350,000
3,007,000
68,000
2,905,000

6,434,000
390,000
17,228,000
88,000
3,611,000

5,475,000
442,000
2,483,000
90,000
3,530,000

5,066,000
381,000
819,000
95,000
3,355,000

4,806,000
373,000
459,000
89,000

1.523,346,000
95,551,000
653,478,000
12,269,000
11,956,422,000

Bills discounted:
Applications
..
Notes discounted
Bills purchased
Currency counted
Coin counted
Checks handled
Collection items:
U. S. coupons paid
All other
i_i Fiscal agency operations
-3Transfers of funds
Envelopes handled

2,436,808,000
196,774,000
821,051,000
12,499,000
24,354,352,000

1,348,025,000
116,070,000
833,126,000
14,419,000
23,874,737,000

3.158,818,000
115,583,000
874,797,000
16,519,000
26,652,412,000

3,704,378,000
153,571,000
939,106,000
16,309,000
28,614,232,000

62,051,000
405,362,000
1,002,514,000
3,098,602,000

63,857,000
469,979,000
900,529,000
3,649,583,000

64.778,000
427,264,000
348,600,000
4,752,346,000

64,834,000
476,805,000
324,788,000
5,333,830.000

62 849,000
502,476,000
273,650,000
4,460,935,000

13,139
36,444

Amounts handled
Bills discounted
Bills pu rchased
Currency counted
Coin counted
Checks handled
Collection items:
U. S. coupons paid
All other
Fiscal agency operations
Transfers of funds




.

Principal assets and liabilities of Federal Reserve Bank of Cleveland by weeks—1926
Amounts in thousands of dollars
Bills discounted for member banks
1925

Jan.

t

Total
bills
and
securities

Total

Secured by
U. S. Government
obligations

Other
bills
discounted

Bills
bought
in open
market

United
States
securities

Foreign
loans on
gold

Total
cash
reserves

Member
banks'
reserve
deposits

Total
deposits

Federal
Reserve
Reserve
notes in percentages
circulation

20
17

113.434
110,845
106,594
92.734

71,012
65.954
58,067
43,880

36.187
40.053
33.662
26,286

34.825
25,901
24,405
17,594

5,210
7,657
11,347
12,171

36,409
36.485
36,485
35.987

803
749
695
696

299,566
303,588
293,717
314.953

173.130
176,920
170,771
179,900

177,535
179,830
174.467
183,401

223,792
218,925
207.951
205,468

74.6
76.1
76.8
81.0

3
10
17
24

87.349
97,671
93,359
93,081

38,158
49,658
43.149
42,737

19.105
25,443
20,016
22,586

19,053
24,215
23,133
20,151

14,800
15,326
16,702
18,025

33,706
31,906
32,759
31,559

685
781
749
760

313.058
313,812
308,102
312,790

177,343
185,646
183,862
172,405

181,137
189,147
187,250
172,179

199,588
204,466
199,579
208,223

82.2
79.7
79.6
81.6

3
10
17
24
31

100,234
107,453
95,433
118,312
116,345

48.620
52.007
48,232
68.192
64,183

27,618
24,643
29.008
44,107
44,439

21,002
27.364
19.224
24,085
19,744

19,124
21,009
20,883
20,893
21,023

31,559
33,496
25,494
28,371
30,229

931
941
824
856
910

305,224
299,226
299,302
283.924
286,880

179,034
177.130
174,542
171,466
170,688

184.180
182.124
177,245
176,166
181,188

203,448
204.189
199,058
203.339
201,458

78.7
77.5
79.5
74.8
75 0

Apr.

7
14
21
28

115,233
122,366
109,428
107,515

59,770
64,384
51,262
50,836

39,653
44.495
32.039
34.259

20,117
19,889
19.223
16.577

22,326
21,076
20.125
18,702

32,195
35,975
37,110
37,110

942
931
931
867

286,776
285,896
283,350
291,970

173,601
180.482
173,701
174,345

181,397
185.332
176,791
176,139

199,948
201,678
194,206
201.413

75.2
73.9
76.4
77.3

May

5
12
19
26

101.452
123.012
110.583
106,489

47,056
69,384
56,965
47,465

29,834
51.128
42,142
32,412

17,222
18.256
14,823
15.053

16,477
15.718
15,643
21,009

37,116
37,118
37,183
37,223

803
792
792
792

294,404
279,823
289,445
290,486

176,005
179,547
185,756
176,995

179,729
183,300
188,644
179,714

196,303
198,854
190,708
194,795

78.3
73.2
76.3
77.6

June

2
9
16
23
30

109.432
106.481
116,397
111.436
108,014

46,757
43,765
44,359
48,851
47,413

33,444
30,276
32,014
32.919
34.572

13,313
13,489
12,345
15,932
12.841

23,994
23,263
22,328
24,515
22.599

37.729
38.554
48,907
37,353
37,414

952
899
803
717
588

284,463
286,665
275,010
284.947
284,543

174,709
177,925
183,755
183,664
177.756

177.662
180.173
185.628
185,219
179,748

194.353
193,368
188,898
189,058
191,712

76.5
76.7
73.4
76.1
76.6

Feb.

OoMar.




21
28...

101.681
98.809
94,714
89.359

40,271
40,058
34,655
30,456

24,142
26,810
24,868
22,563

16,129
13,248
9,787
7,893

23,587
20.995
22,320
21.346

37,299
37,414
37,418
37,418

4
11
18.
25

98.298
104,005
102.925
99,803

36,547
42.890
39,717
38.105

21.871
25.185
28.455
27,186

14,676
17,705
11,262
10,919

23,334
23,014
25,391
26.484

38.417
38,101
37,817
35,214

Sept.

1
8
15
22
29

95.851
98.031
112,127
111,200
110.442

33,467
37,505
43.996
50.353
50,736

21.212
25.250
28.827
28.547
32.973

12,255
12.255
15,169
21.806
17,763

27.398
26,200
25.463
27,102
26,610

34,986
34,326
42.668
33,745
33,096

Oct.

6
13
20
27

1
..

120.698
135,115
136,604
136,960

58,916
74,187
75,139
74,122

30,591
42,176
40.681
43,865

28,325
32.011
34,458
30,257

28,092
27,238
26,775
28,148

33,690
33.690
34,690
34,690

....

134,826
149,172
143,939
141.246

69,260
82,050
75,981
74,835

38,865
52.416
48,950
44,865

30,395
29,634
27.031
29,970

30,024
31,580
32.416
30,903

35.542
35,542
35,542
35,508

I.
8
15
22
29
Daily Average: 1926
1925
1924
1923

141.808
152.932
158.769
171.670
167,378
114,140
111.919
95.286
106.765

75,890
83.930
88.742
99.744
97,147
55,323
53,024
32.679
51,717

50.155
49,695
54.363
63.767
68.240

25,735
34,235
34.379
35,977
28,907

30,669
33,100
35,354
36.184
34,488
22,997
22.496
19.055
36,380

35.249
35.902
34.673
35,742
35.743
35.381
35.387
43.494
18.668

Aug.

°
Nov.

3
10
17
24..

J

Dec.




524
342
321
139

287,179
306,737
300,780
305,518

170,654
189.634
185,092
181,077

173,325
193.011
190.108
186,062

194,552
194,541
186.922
189,315

78.1
79.1
79.8
81.4

300,200
305,803
305,497
316,349

189,291
190,045
190,102
192,181

192.586
193,433
195,501
194,611

186,508
196,276
194,693
200,879

79.2
78.5
78.3
80.0

313.122
314,250
303.009
301,361
300.766

184.012
180.413
191,121
183.678
180,138

188,233
182,593
192.531
191.206
184,915

199,263
207,065
206.515
204.290
207.053

80.8
80.6
75.9
76.2
76.7

II
I

289.756
288,929
275,240
282.526

186,067
183,882
188,283
183,030

188.640
187.513
191,030
186,015

203,548
211,033
203,207
209,346

73.9
72.5
69.8
71.5

..
.

280,157
263.582
268,992
279,140

181,867
177.070
187.133
178.705

186,705
183.606
192.908
185,173

205.309
208.625
204,072
213,432

71.5
67.2
67.8
70.0

277,088
269,229
268.884
254,150
259,310
294,183
294,410
312,337
312,132

179.552
177.147
185.333
175.513
180.034
179.202
174.737
166.194
158.370

185,502
182.896
187,789
180,756
183,524
183,181
178,206
170.793
162,723

213,228
218,949
224.448
235.614
225.601
203,893
208.181
216.380
237.238

69.5
67.0
65.2
61.0
63.4
76.0
76.2
80.7
78.0

...

439
1.012

Statement of the condition of the Federal Reserve Bank of Cleveland
December 31, 1926 and December 31, 1925
RESOURCES

Dec. 31, 1926

$303,855,157.09
9,550,701.00

$275,046,988.04

$313,405,858.09

5.5O8.5OO.OO
14,445.00
611,068.79

.

$192,604,320.00
62,915.704.02
994.632.14
47.340,500.63

263,646.856.04
11,400,132.00

Total gold reserves
Legal tender notes, silver coin and certificates-.
Total cash reserves
Non-Reserve Cash:
National bank notes
. .
Federal Reserve bank notes
Subsidiary silver, nickels and cents
Total non-reserve cash
Bills and Securities:
Member bank collateral notes
Bills discounted for member banks
Bills bought in open market
U. S. Government securities:
U. S. 4 \ i % Liberty Loan b o n d s . . . . U. S. bonds issued since 1921
Other U. S. bonds
.
Treasury notes . . . . . . . . .
Treasury certificates of indebtedness
Participation in Special InvestmentForeign loans on gold

Dec. 31. 1925

$153,371,170.00
56,281.555.12
7,461,587.37
46,532.543.55

Cash Reserves:
Gold with Federal Reserve Agent
Gold settlement fund—Federal Reserve B o a r d . .
Gold redemption fund—Federal Reserve n o t e s . .
Gold bullion, coin and certificates
. .

4,626,000.00
13,315.00
429,730.05

$6,134,013.79

$5,069,045.05

$57,875,507.77
21,566,386.84
33,217,340.50

$42,959,221.79
23,169,124.19
4,989,615.36

547,330.00
205,300.00
414,800.00
15,540,700.00
5.431,500.00
14,015,000.00

7,354.900.00
195,000.00
414,800.00
10,293,700.00
499,500.00
17,651.500.00
834,600.00

$148,813,885.11
66.323,749.52

$108,361,961.34
68,554,299.52

6,906,245.11
898,373.59

6,998,796.28
928,202.76

7,804,618.70
686,033.25

7,926,999.04
517,999.80

.

$7,118,585.45
886,756.51

$7,408,999.24
1,031.120.32

.

$504,323,978.42

$503,831,283.56

$219,960,625.00

$232,614,585.00

178,471,876.37
1,260,328.50
3,012,715.04
816.812.53
161,570.53

171,928,292.76
983,276.06
883.193.99
986,490.10
372.107.63

$183,723,302.97
62,307,999.61

$175,153,360.54
59,105,427.58

13,617,750.00
23,745,854.58
968,446.26

13,175,800.00
22,893,597.54
888,512.90

$504,323,978.42

$503,831,283.56

. . .

Par value of bills and securities
Uncollected Items
Bank Premises:
Banking house and land—Cleveland
Banking house and land—Pittsburgh.
Total bank premises
Less reserves for depreciation
Bank premises—net
Total miscellaneous assets
Total Resources

.

LIABILITIES
Federal Reserve notes (in actual circulation).
Deposits:
Members—Reserve account
U. S. Treasurer—General account
Foreign banks .
Non-members—Clearing account
Official checks and drafts outstanding
Total deposits
Deferred Availability Items
Other Liabilities:
Capital stock paid in.
Surplus fund'
Miscellaneous liabilities

]
__

Total Liabilities




.

.

20

Profit and loss account—1926
Total gross earnings
Current expenses

$4,517,884.04
2,531,746.02

Current net earnings
Net deductions from current net earnings

$1,986,138.02
325,376.31
$1,660,761.71

Net earnings available for dividends and surplus
Dividends Nos. 20 and 21
Transferred to surplus




$808,504.67
852,257.04
$1,660,761.71

21

GOLD

RESERVES

END OF MONTH

flGURCS
DOLLARS

2

II

ALL FEO BES: BANKS

^ ^

CHART I

ANALYSIS OF EARNINGS & EXPENSES
FOURTH DISTRICT

MEMBER

8ANKS

rSAH ENOIHG JUNE 30 1926

DISTRIBUTION
OF

DISTRIBUTION OF EXPENSES

EARNINGS

tm
UNOIVIOCO pnoriT$




rax

CHART II

22

« 149.059.000

a
2