The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
SEVENTH ANNUAL REPORT of the Federal Reserve Bank of Dallas For the Year Ended December 31 1921 SEVENTH ANNUAL REPORT of the Federal Reserve Bank of Dallas For the Year Ended December 31 1921 DIRECTORS AND OFFICERS OF THE FEDERAL RESERVE BANK OF DALLAS 1922 DIRECTORS CLASS A JOHN T. SCOTT, Houston, Texas HOWELL E. SMITH, McKinney, Tt>xas B. A. McKINNEY, Dallas, Texas CLASS B MARION SANSOM, Fort Worth, Texas FRANK KELL, Wichita Falls, Texas J. J. CULBERTSON, Paris, Texas CLASS C W. F. RAMSEY, Dallas, Texas W. B. NEWSOME, Dallas, Texas H. O. WOOTEN, Abilene, Texas OFFICERS W. F. RAMSEY, Chairman and Federal Reserve Agent W. B. NEWSOME, Deputy Chairman CHAS. C. HALL, Assistant Fedsral Peserve Agent DWIGHT P. REORDAN, Assistant Federal Reserve Agent VAL J. GRUND, General Auditor CHAS. C. HUFF, General Counsel E. B. STROUD, JR., Office Counsel B. R. R. R. A. McKINNEY, Governor G. EMERSON, Deputy Governor R. GILBERT, Cashier BUCKNER COLEMAN, Assistant Cashier FRED HARRIS, Assistant Cashier W. O. FORD, Assistant Cashier JAMES L. LUMPKIN, Assistant Cashier REECE T. FREEMAN, Assistant Cashier EL PASO BRANCH U. S. STEWART, El Paso, Texas E. M. HURD, El Paso, Texas DIRECTORS W. C. WEISS W. W. TURNEY, El Paso, Texas A. P. COLES, El Paso, Texas OFFICERS W. C. WEISS, Manager W. P. CLARKE, Assistant Federal ReM. CRUMP, Cashier serve Agent ALLEN SAYLES, Assistant Cashier HOUSTON BRANCH DIRECTORS E. F. GOSSETT, Houston, Texas FRANK ANDREWS, Houston, Texas R. M FARRAR, Houston, Texas GUY M. BRYAN, Houston, Texas J. J. DAVIS, Galveston, Texas OFFICERS FLOYD IKARD, Manager R. L. KING, Assistant Federal Reserve LAURENCE E. DIGNAN, Cashier Agent M. D. JENKINS, Assistant Cashier MEMBER FEDERAL ADVISORY COUNCIL R. L. BALL, San Antonio, Texas LETTER OF TRANSMITTAL Federal Reserve Bank, Dallas, Texas, January 16, 1922 Sir: I have the honor to submit the following report concerning the operations of the Federal Reserve Bank of Dallas and conditions in the Eleventh Federal Reserve District, for the year ended December 31, 1921. Yours respectfully, W. F. RAMSEY, Chairman of the Board and Federal Reserve Agent. Honorable W. P. G. Harding, Governor, Federal Reserve Board, Washington, D. C. SEVENTH ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF DALLAS INTRODUCTION A history of the operations of the Federal Reserve Bank of Dallas covering the past twelve months, produces further proof of the test to which the facilities of the institution have been subjected. During no period in the bank's activities have conditions been more unusual, or the business and credit situation more strained. Following the decline in commodity prices, which began the latter part of 1920, and the subsequent general demoralization of markets, a large percentage of member banks was unable to adequately reduce their lines in the fall, when liquidation normally occurs in this district. There was a tendency in some sections to hold commodities for higher prices, while in others there was either no market for the products or the yields were unsatisfactory on account of partial crop failures. This necessitated a larger carry-over of indebtedness into 1921 than at any time previously, and very early in the year the Federal Reserve Bank of Dallas was called upon to extend additional credit to finance spring crop preparations. Many member banks already in an over-extended condition and unable to reduce their loans on account of the depressed market for farm products, also faced the necessity of meeting a gradual withdrawal of deposits. The situation was exceptional and called for the exercise of extreme patience and sound judgment. The management of the Federal Reserve Bank of Dallas, early recognizing the danger in conditions, immediately began effective measures to conserve credit and restrict advances to member banks to their indispensable requirements. In February a slight increase in discount rates was established in order to place the rates of the Dallas district in line with those in other parts of the country. At the same time the progressive, or graduated, rates which had been in effect since May, 1920, were 6 Federal Reserve Bank of Dallas abolished. The advance in rates was deemed justified in view of the necessity of rediscounting many millions with other Federal reserve banks at a higher rate than charged member banks. Throughout the year the bank has encouraged, in every legitimate way, the gradual and orderly marketing of livestock and agricultural commodities in order that loans might be retired. It has sought the co-operation of member banks in the reduction of borrowings; at the same time liquidation has not been insisted upon, or forced, where it meant disaster to the banks or undue losses to producers, either by the sale of commodities on a declining market or the sacrifice of live stock in an unfinished or unmarketable condition. For the first five months of the year there was a gradual reduction in loans to member banks, resulting to a considerable extent from the sale of government securities, the practice of more rigid credit policies by member banks, more economical farming methods, and the general reduction in wages and price of commodities. In the four months following, loans to members increased slightly, while in October, the first month of the fall liquidating season, a material reduction was shown. Further decreases in loans were effected during the months of November and December, when the demands for credit were lessened, and the relief afforded member banks through advances from the War Finance Corporation was reflected in the financial situation in the district. By reason of this improvement the bank's gold position was materially strengthened, and on December 15 rediscounting with other Federal reserve banks, necessary since January 1 on account of unusual credit demands, was discontinued. While further headway in the readjustment period has been accomplished in the past twelve months, there is still much to be done in this direction, and the outlook for 1922 is not especially encouraging. Unsatisfactory crop returns in a large part of the rich agricultural belt of the district have made it necessary to carry over another large volume of indebtedness, and financial conditions are not unlike those which existed a year ago. Notwithstanding the policy of helpfulness and co-opera Federal Reserve Bank of Dallas ? tion which the bank has pursued in its relations with member banks, there have been some suspensions and failures during the year, attributable largely to the lack of proper supervision and an over-extended condition. Had it not been for the constructive measures and assistance rendered by the bank other suspensions would have resulted. By extending further credit, where the condition of the member bank justified, and suggesting changes in management and official reorganization, the bank has saved some very bad situations. FINANCIAL RESULTS OF OPERATION The decrease in amount of earning assets is reflected in the bank's gross earnings for 1921, which were $4,243,648, or 13.5 per cent less than 1920. Net earnings in 1921 were $2,382,792 as compared with $3,354,675 in 1920, a decrease of $971,883 or 28.9 per cent. The ratio of net earnings to paid-in capital in 1921 averaged 56.7 per cent, as compared with 89.2 per cent in 1920. The average rate on bills discounted in 1921 was 6.25 per cent compared with 5.67 in 1920. The decreased volume of paper handled more than offset the increase in average rate. While the volume of business handled was much smaller than in 1920, and the bank's earnings so reflect, the cost of operation was not reduced proportionately. It was not possible to make any appreciable reduction in the wage scale, although the clerical force was slightly cut during the latter half of the year. At its meeting in July the directors authorized the absorption by the bank of the expense of fiscal agency operations for the year ending June 30, 1922. These expenses have approximated $75,000 for the past year. The expense of operations in 1921 was $1,860,856 as compared with $1,549,847 in 1920, an increase of 20.0 per cent. On December 31, 1920, after appropriate entries in the profit and loss account had been made, the bank's capital was $4,098,550, and surplus $6,032,744. On June 30 a dividend at the rate of 6 per cent per annum, covering the bank's operations for the first six months of the year, amounting to $124,618.69 was paid. At the same time 8 Federal Reserve Bank of Dallas $1,079,933 was added to surplus. On December 31 another dividend at the rate of 6 per cent per annum, covering the operating period from July 1 to December 31, amounting to $127,592.24 was paid. The balance in profit and loss account of $281,419 was added to surplus, making the surplus account on December 31, 1921, $7,394,097, or 88 per cent of the bank's subscribed capital. Schedule 1 shows comparative balance sheet as of December 31, 1919, 1920 and 1921. The decrease in volume of banking business of the district is reflected in the decrease in the principal asset and liability items, such as productive assets, gold reserves, capital, surplus, reserve deposits of member banks and total resources. Total earning assets on December 31, 1921, were $55,291,598, as compared with $83,222,000 on December 31, 1920, $77,768,000 on December 31, 1919, and $56,363,000 on December 31, 1918. The capital of the bank on December 31, 1921, was $4,203,200, as compared with $4,098,000, on December 31,1920, $3,420,000 on December 31, 1919, and $3,154,300, on December 31, 1918. Total resources on December 31, 1921, were $122,029,000, as compared with $174,665,000 on December 31, 1920, $200,492,000 on December 31, 1919, and $119,830,000 on December 31 1918. Schedule 2 shows comparative statement of earnings and expenses for the years 1918, 1919, 1920 and 1921. Schedule 3 shows the disposition of income for 1921. DISCOUNT OPERATIONS The unusual demands for credit by member banks have continued in the past year, and the rediscount facility, the most important function exercised by the bank, has been sought by 82 per cent of the members. Of a total membership on December 31, 1921 of 861, 704 were accommodated in the year. The volume of paper handled in 1921 was 40 per cent Federal Reserve Bank of Dallas 9 less than in 1920, but the number of banks accommodated increased 3 per cent over 1920; and the number of applications increased 58 per cent. Of the total paper rediscounted, the borrowings by states were as follows: Number of Percentage States Banks Served Amount of Total Arizona 10 $ 6,480,274 .8 Louisiana 17 23,157,745 3.0 New Mexico 39 21,505,538 2.8 Oklahoma 31 25,101,238 3.3 Texas _.. 607 695,751,693 90.1 The largest amount of paper was handled in the month of January and the smallest in December. The ratio of rediscounts of borrowing banks to their basic line, or amount contributed to the working assets of this bank on December 31st, was 142 per cent. The following table shows, by months, the liability ratio of borrowing banks to their basic lines in 1921, classified by states: MONTH January February March April May June July August September October November December Arizona (Percent.) 128 119 136 151 113 117 _ 102 156 188 141 139 106 Louisiana (Percent.) 121 113 64 103 90 99 138 112 126 79 65 148 New Mexico Oklahoma Texas (Percent.) (Percent.) (Percent.) 250 381 145 272 312 135 254 260 118 255 257 120 260 250 119 286 254 • 111 241 266 125 252 326 ' 128 317 339 137 257 333 120 248 390 111 228 512 112 In other words, the borrowings of member banks exceeded, by the percentage shown, their contribution to the working assets of the Federal Reserve Bank of Dallas, or what is termed the "basic line", which is arrived at by deducting 35 per cent from the member's average reserve deposit, adding to this the amount contributed to the capital stock of the Federal reserve bank, and multiplying by two and onehalf, which is the lending ability of the Federal reserve bank. By reason of these excess borrowings, as commented upon in a preceding paragraph, the bank was obliged to re 10 Federal Reserve Bank of Dallas discount with other Federal reserve banks until December 15th. The maximum of $27,275,000 was reached on January 13, 1921. In 1920 the maximum of rediscounts with other Federal reserve banks was $39,097,256 on September 10th, and minimum $1,000,000 on May 12th. Schedule 16 shows rediscount transactions with other Federal reserve banks in 1921. Of the total paper discounted in 1921, $454,684,000 or 58.8 per cent consisted of notes secured by Government obligations, as compared with $999,943,000 or 78 per cent of the total in 1920. The volume of this paper has shown a steady decrease throughout the year, on account of the reduced holdings of government securities by member banks. Early in the year the rate on government secured paper was slightly increased, and the loan value of Liberty bonds was fixed at 85 per cent and Victory notes at 95 per cent of their face value. Bonds in large blocks have been sold in the East and to investors in this district. As these sales were by the banks which had been under the necessity of borrowing on the securities, there was a corresponding decrease in the volume of paper discounted secured by government obligations. Holdings of treasury certificates by member banks were less than in 1920, and the largest subscriptions were from individuals, firms and corporations, or from banks to supply their customers, and not for their own account. TRADE ACCEPTANCES Schedule 10 shows the volume of this class of paper handled in 1921, classified by maturity. It is not believed that the development of trade acceptances in 1921 has been any more extensive than in previous years. The progress being made in their use by the trade seems slow and unsatisfactory. Some of the largest mercantile houses have adopted the acceptance in settlement of purchases, and their experience has justified the change. On account of competition, and the willingness of dealers to carry open accounts, granting extensions, as necessary, in Federal Reserve Bank of Dallas In- stead of handling in the form of acceptances, with a fixed date of settlement, the trade acceptance has not been generally adopted in this district. It is believed that as conditions in mercantile lines become normal, and stricter credit policies necessarily resorted to, the acceptance will find favor with a larger number of firms. This bank will continue to encourage the development in every possible way. B A N K E R S ' ACCEPTANCES Purchases of bankers' acceptances during the year aggregated $694,022, as compared with $8,348,277 in 1920. All the purchases of this class of paper in 1921 were from the accepting banks in this district. Conditions in the district in 1921 were not favorable to the growth of acceptance credits, and the amount of new bills created has been rather limited. This is partially attributable to the depressed market for commodities, as well as the decreased and unsettled export trade. As the fall season opened and the necessity for financing cotton and other commodities began, there was a noticeable increase in the acceptances created in this district, and the volume outstanding during the closing months of the year was heavier than in earlier months. The demands on this bank for credit were so heavy, and its available funds so actively employed in taking care of the indispensable needs of member banks, that our purchase of acceptances has been very small; in fact, the bank has not entered the open market to purchase bills as it has previously done in seasons when it held surplus funds. There have been some inquiries and demand for acceptances by banks, individuals and firms, with funds seeking investment, and it is believed there is an increasing appreciation of the desirability of such paper for temporary employment of idle funds. During the year one bank was granted authority to accept up to 100 per cent of its capital and surplus, making a total of 28 which had received this permission on December 31, 1921, as per schedule 33. Schedule 12 shows the volume of bankers' acceptances purchased, rates and maturities. 12 Federal Reserve Bank of Dallas RESERVE POSITION In order to maintain its required reserve position the bank found it necessary to rediscount with other Federal reserve banks continuously until December 15th. The amount of these rediscounts varied, according to the demand for accommodations from member banks. As will be observed from "exhibit A " showing the movement of deposits, Federal reserve note circulation and reserves, had this inter-district accommodation not been extended, the bank's "adjusted" reserve position would have reached the vanishing point on several occasions. Beginning in January, rediscounts with other Federal reserve banks fluctuated between $21,000,000 and $27,000,000 and the bank's reserve to combined deposit and note liability ranged between 39.8 and 41.4 per cent. In February, March and April rediscounts with other Federal reserve banks ranged from $6,600,000 to $17,500,000, and during this period the reserve ratio fluctuated between 37.6 and 40.9 per cent. In May, June and July rediscounts with other Federal reserve banks ranged between $2,500,000 and $19,000,000, and the reserve ratio between 37.9 and 41 per cent. In August, September and October rediscounts with other Federal reserve banks were between $7,600,000 and $24,600,000, and reserve ratio 38.3 to 41.4 per cent. The bank's adjusted reserve improved materially in November, and by reason of such improvement its interdistrict borrowings were almost retired, being reduced on at least one day in the month, to less than $1,000,000. This position was not of long duration, however, and rediscounting in moderate amounts was continued until December 15th, when the bank retired its borrowings with other Federal reserve banks. During the remainder of the year the bank's gold holdings became stronger and its reserves improved until, on December 31st, its ratio was 43.1 per cent. CLEARING OPERATIONS The annual report for the year ending December 31, 1920, touched upon the plan adopted March 1, 1920, whereby the Federal Reserve Bank of Dallas 13 aggregate of our daily transit items, sent to each bank, would be handled as a separate transaction, and charged to the reserve account of the member bank after receipt of the cash letter had been acknowledged. Effective March 10,1921, this plan was discontinued, and our daily transit sendings to each bank, both member and non-member, are now forwarded for collection, and remittance of proceeds, in accordance with method outlined in our Circular No. 3, series of 1921. Despite the continued heavy volume of checks cleared through our transit department, during the year just closed, the number of employees required for this work has been considerably reduced. Improved methods and increased efficiency, following the housing of the department in our new building, are the most important factors contributing to the decreased cost of clearing operations. The reserve city clearing house continues to function satisfactorily, and has come to be regarded as almost indispensable for the settling of balances between the members thereof, but its benefits accrue not alone to the comparatively few banks comprising this association. Country banks in increasing numbers are availing themselves of the facilities offered by the reserve city clearing house, and recognize it as a convenient medium through which to convert their drafts into available funds, immediately upon receipt by this institution. Many banks, non-member and member, are settling for our transit sendings with exchange payable through the reserve city clearing house. This and other factors have contributed toward the reduction in the mail collection time schedule for this district. Direct routing of checks is playing an important role in clearing operations. When it is desirable, in order to save time, member banks may arrange, by application to the Federal Reserve Bank of Dallas, for direct routing of their items to the head office or branch in the Eleventh Federal Reserve District, outside of their territory, or to other Federal reserve banks or branches, for credit at the head office or branch to which they are attached. One hundred and fifteen member banks in the Eleventh District have been accorded the direct routing privilege, thereby effecting a saving of the time required for the items to reach the head office or branch to which they are attached. 14 Federal Reserve Bank of Dallas Direct routing eliminates unnecessary handling, and provides the means for the quickest possible collection and credit of checks. The privilege of direct sending is not restricted to member banks of this district, as many banks in other Federal reserve districts are also routing checks direct to the head office and branches of this institution, and the saving in time and expense is quite an item. The annual report for the year 1920 describes "Station K " as a branch of the Dallas Post Office, and enumerates the many advantages expected to be derived therefrom. With the completion of our new building, "Station K " was located on the third floor with the transit and mailing departments. Mail to this bank is delivered from trains direct to "Station K", in pouches so labeled, and our out-going mail is dis* patched in pouches direct to mail trains. Our transit and mailing departments adjoin "Station K " and operate in complete unison. In the mailing department, the out-going envelopes are pulled from the tills in the racks according to colors which denote train time. Many vexatious delays and troublesome losses have in this manner been avoided. "Station K " is one of the most valuable extensions of service to our member banks. As far as it is possible to do so the time collection schedule published by this institution has been perfected to a degree where it coincides almost entirely with the actual time required to collect the checks. Inconsistencies have been eliminated whenever found, and the schedule now in effect varies very little with actual transit time. The slight variance is attributable almost entirely to delayed trains, and certain other causes over which we cannot exercise control. During the early part of the year 1921, a conference was held in Washington of representatives of all Federal reserve banks, and an official inter-district schedule was adopted which corrected inconsistencies in the old schedule, and brought the published collection schedule to within actual transit time. The new schedule, as now operating, proves satisfactory, and shows to have been calculated upon an equitable basis. Federal Reserve Bank of Dallas 15 Our Circular No. 48, 1921, contains the collection time of checks drawn on points in this district, as well as those drawn on various cities and states of other Federal reserve districts. Prior to 1921, comparatively few banks availed themselves of the facilities for quick collection of so called non-cash items, extended through our collection department. The year just closed witnessed a large increase in the number of items of this class handled. In October, 1920, we made 1,825 collections, while in October, 1921, we collected 5,748 items, or an increase of 3,923 collections; this represents an increase in volume of more than 200 per cent. In several instances during the past year certain checks which we received for collection became involved in the failure of drawee banks. Although our liability as collection agent terminates when we charge the amount of the uncollected checks to the accounts of our endorsers, we have deemed it advisable, in the interest of our endorsers, to file claims in their behalf with the proper governmental authority, where we are furnished with the necessary authorization. Several such claims have been filed, established, and allowed as preferred creditor's claims, and we have been enabled to collect the full amount of the checks involved, for our endorsers. In other instances, the claims have been allowed as general creditor's claims, and we have accounted to our endorsers for such dividends as have been collected. This service is rendered without cost to our member banks. Otherwise, considering the time involved and the necessary legal assistance, it would be quite an item of expense to them. MOVEMENT OF MEMBERSHIP On January 1,1921, the total number of national banks in this district was 663, with combined capital and surplus of $116,168,000. During the year 16 national banks were granted characters, as shown by schedule 19. Through liquidation, merger, and other causes, as indicated by schedule 20, 24 were dropped from membership, making a net decrease of 8, or total on December 31, 1921, of 655. 16 Federal Reserve Bank of Dallas On January 1,1921, our total state bank membership was 187, with combined capital and surplus of $21,175,500. During the year 26 state banks were admitted, 7 liquidated, consolidated with other institutions or were converted into national banks, making a net increase during the year of 19, or a total on December 31, 1921, of 206. Schedule 23 shows, by states, the number of state bank members on December 31,1921, together with capital, surplus, and total resources, as compiled from the latest figures available. Schedule 24 shows total membership, national and state, by states, on December 31, 1921. FEDERAL RESERVE NOTES The decreased volume of business transacted in this district in 1921 is reflected in the movement of Federal reserve notes, shown in the appended chart. The reduction in notes in circulation has been gradual, but heavy, and on December 31,1921, the amount outstanding was $45,215,775 less than on the same date a year ago. In past years the peak of issues has taken place in the fall months, when the demands for currency for crop moving purposes were greatest. This has not been the case in 1921, and except in the month of September, when deliveries to the bank were very heavy, there was a steady contraction in note circulation, instead of an increase. September was the only month in the year in which the amount outstanding at the end of the month was greater than the month preceding. Aside from the reduced volume of business and consequent lessened demand for currency, an important factor which contributed to the reduction was the decrease in shipment of notes to banks on the Mexican border for circulation in Mexico. In 1920 notes in large amounts were used for this purpose, while in 1921 shipments of currency to border banks for Mexican circulation have been negligible. The Federal Reserve Agent issued notes to the bank during the year aggregating $25,762,000, as compared with $69,245,000 in 1920. The bank returned to the Agent notes fit for use aggregating $13,217,000, as compared with $13,825,000 in 1920. Notes aggregating $57,760,775 were returned to the Federal Reserve Bank of Dallas ^ Comptroller for destruction, as compared with $49,310,520 in 1920. It will be noted that the amount of notes returned by the bank to the Agent, were less than in 1920, and notes redeemed, or sent to the Comptroller for destruction, have made up a large part of the decrease in circulation. Schedule 26 showTs the number of notes, by denominations, received, issued, and returned to the Comptroller for redemption during 1921. Schedule 27 is a consolidated statement of notes received, issued to and received from the Bank, and returned to the Comptroller since organization, and on hand December 31, 1921. Schedule 28 shows the inter-district movement of notes during 1921. FEDERAL RESERVE BANK NOTES On December 31, 1920, the bank had Federal reserve bank notes in actual circulation amounting to $7,101,000. New notes aggregating $1,980,000 were issued in 1921, notes totaling $7,775,000 were sent to Washington for redemption, and $2,949,800 were outstanding on December 31, 1921. Of this amount $2,726,441 were in actual circulation. On the same date Federal reserve bank notes of $4,668,000 were held by the Comptroller as reserve stock, and securities amounting to $3,295,900 were lodged with the United States Treasurer as cover for the notes. These consisted of2 per cent, consols of 1930, aggregating $1,395,900, and special 2 per cent, certificates of indebtedness (Pittman Act) aggregating $1,900,000. In April Pittman Act one year special certificates, aggregating $3,900,000, purchased originally as security for Federal reserve bank notes, but against which no circulation was outstanding, were retired. The demand for currency in small denominations is met, to a large extent, by Federal reserve bank notes, and they have gradually taken the place of silver certificates and silver dollars. The amount of Federal reserve bank notes outstanding on December 31, 1920, amounts issued to replace unfit notes, and redemptions in 1921, is shown by schedule 30. 00 FEDERAL RESERVE NOTES OUTSTANDING Federal Reserve Bank of Dallas 19 RELATIONS WITH MEMBER BANKS—NATIONAL AND STATE In another section of this report, covering the operations of the Member Bank Relations Department in 1921, reference is made to the bank's activities in promoting closer relationship with members. The best evidence of accomplishment along this line is the larger number of banks which have used the facilities offered. Better service, and the more efficient and intelligent handling of member bank transactions have been the first consideration of the bank's officers. While the Member Bank Relations Department is concerned principally with disseminating information and educational propaganda about the Federal Reserve System, the operating officers of the bank, who are in close touch daily with transactions of members, are able to render invaluable assistance. The unusual conditions and peculiar problems which obtained in 1921 have emphasized the close relationship between the Federal Reserve Bank and its '' customers'', the member banks. With a large membership, over a territory of vast areas, there have unquestionably been instances where the service rendered has fallen short of the member banks' expectations. Errors of omission and commission have crept in regardless of the best efforts to prevent them, but it is believed they were inconsequential when compared with the number of transactions satisfactorily and expeditiously concluded. FIDUCIARY POWERS TO NATIONAL BANKS Only two banks were granted fiduciary powers in 1921, making a total of 61 banks which had received such permission on December 31, 1921, as shown in schedule 32. Some of the larger banks have featured their trust departments and are obtaining a profitable line of business. The majority of the banks authorized to exercise these special functions, however, have not used them, as disclosed by replies received to the questionnaire recently sent out by the Federal Reserve Board. Various reasons are advanced for this, but it seems principally attributable to unfamiliarity with the handling of trust business by the officers of commercial banks. 20 Federal Reserve Bank of Dallas MEMBER BANK RELATIONS DEPARTMENT The field representatives and the Assistant Federal Reserve Agent, in charge of the Member Bank Relations Department, made 1163 visits to member and non-member banks in the district during 1921. Visits were made to 687 member banks in following out the established policy of a personal visit to each member from time to time for the purpose of fostering better relations, the establishment of more perfect contact between the Federal Reserve Bank of Dallas and its branches with its members, and the encouragement of the more frequent use of this bank's facilities. Each visit is covered by a complete report with respect to the bank visited, which report is always supplemented by a resume of the general conditions, prospects for liquidation, etc. Digests from all such reports are prepared and sent to each member of the Executive Committee for his information. Visits were made to 362 non-member banks located in the same town, or cities, with member banks. In addition to the visits above mentioned, representatives of the Member Bank Relations Department made 114 special calls on member and non-member banks to secure specific credit information, or for the purpose of personally handling matters incident to our check collection system, as it affected some of our non-member banks. A representative of the Member Bank Relations Department, or the Assistant Federal Reserve Agent, has attended all group meetings and bankers' conventions held in the district, and several addresses regarding the purposes of the Federal Reserve System and functions of the Federal reserve banks have been delivered by the Assistant Federal Reserve Agents on such occasions. Officers or representatives of member banks visit the Federal Reserve Bank of Dallas almost daily, in order to secure first hand information about the operation of the different departments of the bank with which they frequently come in contact. These visits have resulted in much good, and it is believed are very interesting an instructive to the visitor. Federal Reserve Bank of Dallas 21 Our traveling representatives make it a point to extend the bankers called upon a cordial invitation to visit the head office and its branches. STATE BANK MEMBERSHIPS While no active campaign for state bank members was conducted in 1921, 56 applications were received, of which 26 were favorably acted upon, and the memberships of the banks concluded. Action on the remainder was deferred on account of the condition of the banks. A number of inquiries were received from banks which had membership under consideration, and the matter has also been discussed personally by officers of state banks with the Federal Reserve Agent's Department throughout the year. In such instances, of course, all necessary information was furnished. The extended condition of many state banks precluded favorable recommendation upon their applications by our Executive Committee, and the banks were frankly advised of the Committee's attitude, and the suggestion was made that they set about to improve their condition. This was done in several instances, and upon reconsideration of the application by the committee favorable action was had. It is expected that as financial conditions become improved there will be increased interest in membership on the part of the state banks, and it is hoped to add to our membership as the condition of the applicants admit. There is a growing appreciation on the part of state banks of the advantages of the connection, and as normal conditions are restored there is no reason why the splendid success already accomplished in this district, in state bank members, cannot be continued. BANK EXAMINATIONS On December 31,1921, there were 206 state bank members of the Federal Reserve System in this district, as compared with 187 at the beginning of the year. The number of joint examinations conducted in 1921 by the Examination Department was 175, as against 58 in 1920. Thus while there was a growth in state bank membership of only ten per cent 22 Federal Reserve Bank of Dallas there was an increase of more than 200 per cent in the number of joint examinations made during the year. There was also an increase of more than 150 per cent in the aggregate number of examinations of all kinds, including joint, special, independent and those made in connection with applications for membership. The following comparative summary shows the number of examinations of various kinds conducted during 1920 and 1921: 1921 1920 State Banks: Applicants for membership .._ 53 82 Joint with state examiners 175 58 Special or independent 30 10 Total number of state bank examinations National Banks: Joint examinations 1 Special examinations 7 Regular examinations made or participated in by our examiruers while loaned to the Comptroller of Currency 113 258 150 121 Total number of examinations made during the year 379 150 The results accomplished during the year just closed were made possible by increasing our force of examiners and establishing closer relations with state supervisory officials. Wholehearted cooperation and unstinted assistance in the matter of bank supervision have been exchanged with state and national authorities during the year. The various State Banking Commissioners and their examiners, almost without exception, have rendered invaluable aid in planning and executing joint examinations and otherwise making the present system of dual supervision more satisfactory and effective. Close relations have also been maintained with the Chief National Bank Examiner of the Eleventh District. By an arrangement made through the Federal Reserve Board Federal Reserve Bank of Dallas 23 two of our examiners were loaned to the Comptroller of Currency early in 1921 and served as national bank examiners during the greater part of the year. During the course of the year the department made 6,800 abstracts of examination and condition reports, 1,050 credit status reports, and 350 special analyses of examination reports. BANKING QUARTERS On March 12th, with the transfer of the Cash and Trust departments to the new building, all divisions of the bank had been moved, and while there was necessarily some confusion incident to the transfer and operation of the bank in the new location, this was rapidly overcome, and normal activities were resumed without undue delay. Adequate space is now provided for all departments, and working conditions are ideal. The present building meets every requirement necessary for the safe and expeditious handling of the bank's business, and every modern feature for the comfort and welfare of the staff has been arranged for. As might be expected, when all the departments were moved to the new building, it was necessary to make some slight revisions in the space originally allotted the different departments to conform to their actual working requirements. More room was needed for some divisions than the plans provided for, while in practice other departments found it possible to make a slight reduction in their space. These re-arrangements, however, did not materially affect the original plans. The judgment of the building committee, in making suitable provision for the future growth of the bank, has been fully justified. The reports of the branches, made a part hereof, describe the quarters occupied at El Paso and Houston. INTERNAL ORGANIZATION AND PERSONNEL On January 1, 1921, the personnel of the Board of Directors was J. T. Scott, Ed. Hall, B. A. McKinney, Class A; Marion Sansom, Frank Kell, J. J. Culbertson, Class B; W. F. Ramsey, W. B. Newsome, H. O. Wooten, Class C. Mr. Hall, having been appointed as Commissioner of Insurance and Banking of Texas, and his service in that capacity being deemed incompatible with a directorship in this bank, 24 Federal Reserve Bank of Dallas his resignation was presented and accepted at the March meeting. A special election for the purpose of choosing a successor to Mr. Hall was held, with the result that Howell E. Smith, Cashier of the First National Bank, McKinney, Texas, was elected. The Board of Directors has held eleven meetings in 1921, regular sessions being held in each month except September, when many of the Directors were out of the State on vacation. At its meeting in January the Board elected the following officers to serve in 1921: R. L. Van Zandt, Governor Lynn P. Talley, Deputy Governor Sam R. Lawder, Cashier R. B. Coleman, Assistant Cashier Fred Harris, Assistant Cashier Dwight P. Reordan, Assistant Cashier W. 0. Ford, Assistant Cashier J. L. Lumpkin, Assistant Cashier Reece T. Freeman, Assistant Cashier Carl B. Teagarden, General Auditor C. C. Huff, General Counsel E. B. Stroud, Jr., Office Counsel At the same meeting R. L. Ball, of San Antonio, was reelected to serve on the Federal Advisory Council in 1921. Messrs. McKinney, Newsome and Sansom were also reappointed members of the Executive Committee, to serve for three months. These gentlemen were re-designated as members of the committee, from time to time, during the year, and have served continuously. The Committee held ten formal meetings in 1921. Informal sessions, or conferences, on important administrative matters, have been held almost daily. At the July meeting our directors reluctantly accepted the resignations of Deputy Governor Talley and Cashier Lawder, on account of their election to senior official positions in a large commercial bank in Dallas. To fill the official vacancies thus created, the services of R. G. Emerson, Assistant to Governor of the Federal Reserve Board, were loaned the bank, and R. R. Gilbert, formerly Assistant Federal Reserve Agent, was elected Cashier to succeed Mr. Lawder. Federal Reserve Bank of Dallas 25 Dwight P. Reordan, formerly Assistant Cashier, was appointed Assistant Federal Reserve Agent, in charge of Member Bank Relations, to succeed Mr. Gilbert. By the re-arrangement of official duties, in which the departments formerly under the supervision of Mr. Reordan were assigned other Assistant Cashiers, the number of Assistant Cashiers was reduced from six to five. Mr. Reordan had supervision of the Service and Bookkeeping Departments. The former was transferred to Assistant Cashier Ford, and the latter to Assistant Cashier Lumpkin. At the same time the Securities, or Trust Department, which had been under Mr. Ford's supervision, was transferred to Mr. Harris. In August Mr. Emerson was elected Acting Deputy Governor, and served in that capacity the balance of the year. In November the resignation of Carl B. Teagarden, General Auditor, was accepted, and D. S. Lawhon, formerly Assistant General Auditor, was designated Acting General Auditor. The terms of Messrs. John T. Scott, Class A Director, and Frank Kell, Class B Director, expired on December 31, 1921. These gentlemen represented banks in groups 1 and 2, rspectively. Between November 17th and December 1st an election was held to choose their successors, which resulted in the re-election of Messrs. Scott and Kell, to serve for the three year term beginning January 1, 1922. In December the Federal Reserve Board re-designated W. F. Ramsey Chairman of the Board, and Federal Reserve Agent, for one year beginning January 1,1922, and re-appointed W. B. Newsome as Class C Director, for the three year term beginning January 1, 1922, re-designating Mr. Newsome Deputy Chairman of the Board for 1922. The total number of officers and employes at the head office and branches on December 31, 1921, was 637, as compared with 613 on December 31, 1920. The reduction of 25 employes in the Transit Department and 29 employes in the Fiscal Agency Department, was more than offset by increases in the Cash, Credit, Loan and Discount and Service Departments. The addition of 36 employes to the latter department was due to the necessity for increased protection and janitor 26 Federal Reserve Bank of Dallas service in the maintenance of the new building and operation of the Cuisine division, or cafe. The heavier volume of work in the Credit and Loan and Discount departments necessitated increases in their personnel. The entire staff of the bank has demonstrated a very commendable spirit of loyalty, and the smoothness with which the business of each department is at present transacted is adequate proof of the cooperation existing throughout the organization. The number of employes at the head office and branches on December 31, 1921, is shown in schedule 34. FISCAL AGENCY OPERATIONS The functions performed by this department, as well as the volume handled, was much the same as last year with the exception of the handling of War Finance Corporation matters. The most important changes effected during the year were the curtailment of activities of the war savings publicity organization done at the direction of the Treasury Department, which permitted a reduction in the clerical force of thirteen employes, and the acquisition of responsibility and added duties in connection with War Finance Corporation transactions. The department, as a whole, has handled more volume this year than during the preceding one, and notwithstanding this fact, the clerical force has been reduced 37 per cent from 76 to 49 employes. However, it would be unfair not to add that 13 of the 27 employes released from the department during the year were attaches of the war savings publicity organization, and, by eliminating all employes of that organization, both last year and this year, for the purpose of comparison, a real reduction of employes in all operating divisions of 25 per cent is enjoyed. It might be of interest to mention the fact that both the former supervising officer and the manager of the department left it within thirty days prior to the beginning of this year and their successors were promoted from the ranks of the department itself. Federal Reserve Bank of Dallas 27 This department moved into the new building in February, 1921, on schedule and without mishap. Fifty-eight registered mail pouches with rotary locks were required to accommodate the securities, the aggregate of which was nearly one hundred million dollars. The various exchanges of Liberty bonds shows an increase of 16 per cent over last year, especially with reference to temporary-permanent exchanges incident to handling those of the Fourth Loan, none of which were exchanged prior to January 1, 1921. The number of separate shipments of securities handled increased 50 per cent. There were practically the same number of separate issues of certificates of indebtedness this year as last, the issues of this year including two series of three-year notes. The total amount of subscriptions allotted, as well as the number of subscriptions, was about ten per cent less than last year; however, the aggregate amount of subscriptions received were in excess of the aggregate of quotas assigned to this district. The issues offered during the last half of the year, although bearing lower interest rates than those of the first half, were largely over-subscribed. Approximately one-third of the total amount of certificates and notes allotted in this district were resold almost immediately in the eastern market. Resales of government securities transactions assumed considerable proportions, increasing during the year; approximately 500 separate transactions being handled. Quick sale of treasury certificates was made possible through special arrangement by the Treasury Department, such plan eliminating the necessity of shipping certificates, deliveries being effected from regular stock of Federal reserve banks and accounting cleared through the Treasury Department. Liberty bonds and Victory notes sales also increased considerably, there still being a general exodus of bonds from this district. 28 Federal Reserve Bank of Dallas The aggregate amount of resales of both certificates and bonds was $28,500,000, practically all being sold in the New York market. These transactions represent practically ten times as much volume and four times as much money as compared with last year. The aggregate net sales of war savings securities were about 33 per cent less than last year. Renewed interest and increased sales were noticed during the last two weeks of the year, incident to offerings of new issues of Treasury savings certificates. Redemptions of war savings stamps from postmasters were about the same. This is the principal item as far as volume is concerned in connection with war savings transactions. The number of interest coupons handled was about 20 per cent less than last year, while government warrants show an increase of about 10 per cent. The activities of the War Finance Corporation in connection with making loans on cotton and livestock in this district began in earnest early in the fall and this bank, acting as fiscal agent, has attended to disbursement of all such advances, and retains custody of papers and collaterals and collection of interest, principal, substitution of collateral, renewals, etc. The handling of these transactions has entailed considerable work and required constant close supervision and was carried on without acquiring additional help. Advances on cotton amounted to $1,337,933.50, and on livestock $5,232,498.34. Commencing July 1st, the Treasury Department discontinued the practice of reimbursing this bank for expenses incurred in handling fiscal agency transactions, except in connection with certificates of indebtedness and war savings publicity matters, necessitating this bank absorbing expense, not heretofore borne, at the rate of about $65,000 per annum. OPERATIONS OF THE EL PASO BRANCH On January 1, 1921, the directorate of the branch was composed of W. C. Weiss, W. W. Turner, U. S. Stewart, A. P. Coles, and A. F. Kerr. No changes in the Board have occurred during the year. Federal Reserve Bank of Dallas 29 The officers elected by the directors of the head office to serve in 1921 were W. C. Weiss, Manager; M. Crump, Cashier; Allen Sayles, Assistant Cashier, and W. P. Clarke, Assistant Federal Reserve Agent and Auditor. The personnel of the branch remains practically unchanged from the close of 1920, and on December 31, 1921, was as follows: Transit 15, Cash 7, Loan and Discount 5, Credit 4, Auditing 4, Bookkeeping 4, Mailing 2, Sundry 23. At the close of the year 1921 the branch membership consisted of 59 national and 12 state banks, with capital and surplus of $8,551,050 for national and $1,545,000 for state banks. During the year 3 member banks—2 national and 1 state— suspended operations; both national banks re-opening after a short period of suspension. Membership decreased 2, occasioned by the suspension of the state bank member and consolidation of 2 national banks. No increase in membership is anticipated until normal conditions have been restored and banks have further opportunity to place their houses in order. Practically the entire membership of the district exercised the rediscount privilege during the year, 68 of the 71 member banks having been accommodated. Continued heavy discount operations evidence the service of the branch in meeting the demand for credit in the district. Average discounts and rediscounts of the branch have been approximately double the prorata participation of its membership. During the year discounts and rediscounts amounted to $97,866,448.99, divided by months as follows: January _ $ 8,471,874.83 February 8,031,542.93 March 10,103,466.11 April _ 8,288,984.06 May _ 10,046,439.00 June 12,864,176.87 July _.._ 6,609,736.25 August 8,573,827.21 September 8,319,616.62 October 5,916,623.86 November 4,889,951.58 December _ 5,750,209.67 30 Federal Reserve Bank of Dallas At the close of the year total paper held aggregated $9,102,199.51, classified as follows: Rediscounts $ 8,042,874.31 M. B. Collateral Notes U. S. Secured 844,740.00 Otherwise Secured 204,500.00 B/L Drafts 10,085.20 Credit activities considerably expanded during the year, 2,228 rediscount offerings, consisting of 11,650 notes, and 883 additional collateral offerings, consisting of 5,233 notes, having been received and analyzed. Additional collateral to secure rediscounts was required of 25 banks at the beginning of the year which number steadily increased to 32 at its close. Collateral to secure transit sendings has been required of 4 banks, and director's guaranties to secure rediscounts required of 7. Member banks made free use of the privileges afforded by the branch in connection with currency and coin transactions. There were received during the year 3,385,726 bills amounting to $28,188,100, and 11,055,201 coins amounting to $6,532,558.50. There were shipped and delivered 4,223,367 bills amounting to $33,818,788 and 5,284,701 coins amounting to $3,641,658.50. Total number of incoming and outgoing shipments were 7,162 and 3,143 respectively, a monthly average of 597 and 262 respectively, amounting to $2,893,388.21 and $3,121,703.88 respectively. This department effected 11,026 transfers of funds, involving $145,635,394.83, the larger part of which were made by telegraph, the expense in connection being absorbed by the Federal Reserve Bank. The check collection operations are reflected by months, comparative with 1920, in the following: Federal Reserve Bank of Dallas January February March April May June July August September October November December 1920 No. 239,033 $ 205,944 264,332 258,597 261,463 217,478 206,335 199,193 198,719 : 204,396 203,116 218,689 2,677,295 31 1921 Amount 49,972,808.44 46,611,844.44 51,404,887.35 47,625,720.14 47,871,752.10 45,980,179.85 39,873,947.87 39,197,536.43 41,362,548.18 40,940,236.42 38,786,783.08 39,948,652.93 No. 206,299 188,914 222,816 200,913 192,555 198,362 188,092 191,173 187,846 206,641 196,773 233,393 Amount $ 34,836,757.53 30,285,361.73 35,444,944.34 27,816,820.21 24,705,334.37 24,824,071.39 25,048,653.48 21,823,857.16 22,440,310.72 25,126,169.25 24,684,120.54 26,968,203.43 529,576,897.23 2,413,777 324,004,604.15 The city banks fully appreciate the advantage of the direct routing privilege, which promotes the economical handling of check collections. The branch receives for collection at par, checks drawn upon all banks in the branch district, as well as checks drawn upon banking institutions in other districts on the Federal Reserve Board par list. The branch received from its member banks during 1921, for safekeeping or as collateral to secure advances, and deposited in its securities department, securities aggregating $5,911,387.42. Securities withdrawn during the year amounted to $6,962,967.26. Permanent quarters were occupied in August, 1920, and have adequately met demands. Working conditions in the old quarters were deplorable, and relief from those conditions has considerably strengthened the morale of the organization, and greatly facilitated the handling of business in all departments. The building now consists of two floors, mezzanine and full basement. Provision has been made for four additional stories should increased operations make it necessary. There follows a comparative statement of earnings and expenses for the years 1920 and 1921: Gross Earnings Expense Net Earnings 1920 1921 Total Mo. Average Total Mo. Average $457,104.29 $38,092.02 $731,754.21 $60,979.51 173,659.54 14,471.62 195,916.84 16,326.40 283,444.75 23,620.39 535,837.37 44,653.11 32 Federal Reserve Bank of Dallas OPERATIONS OF THE HOUSTON BRANCH On January 1, 1921, the directorate of the branch was composed of Frank Andrews, Guy M. Bryan, J. J. Davis, R. M. Farrar and E. F. Gossett. No changes in the Board have occurred during the year. The officers elected by the Directors of the head office to serve in 1921 were E. F. Gossett, Manager; Floyd Ikard, Cashier; L. E. Dignan, Assistant Cashier and R. L. King, Assistant Federal Reserve Agent and Auditor. In April M. D. Jenkins was elected Assistant Cashier. In July Mr. Gossett resigned to accept an official position with a local commercial bank, being succeeded by Mr. Ikard, who was, in turn, succeeded by Mr. Dignan. Mr. Gossett continued as a director. At the close of 1921 the branch had 73 employes, as compared with 76 at the beginning of the year. A traveling representative and special examiner was added on January 1st. The net increase in membership for the year was 4, making a total of 135 members. The additions were 3 national and 4 state banks. Two consolidations were effected and 1 member bank failed, which is the only member bank failure since the Branch opened in 1919. On January 1st there were 275 non-member banks in this territory, and of this number 11 have failed. In each instance the Federal Reserve Bank successfully protected its interests as well as those of its endorsers and no losses were incurred. All non-member banks are remitting at par. The Loan and Discount Department handled this year a total of 2,190 offerings, aggregating $37,987,072.10. Member bank collateral notes aggregating 1595, totaling $91,445,475,07 were discounted. Immediate credit was given on 138 bill of lading drafts, amounting to $992,274.81. These drafts represented the exportation of cotton to Europe and the domestic shipment of rice. The total number of notes and drafts handled during the year was 16,462 and the total amount, $129,432,547.17. The largest note handled was $1,000,000, and the smallest $10.00. Since its opening the Branch has loaned $485,821,861.16. 93 banks rediscounted their paper this year, and of this number 35 were required to furnish additional collateral. Federal Reserve Bank of Dallas 33 To date the branch has sustained no losses in its loans. The indebtedness of the defunct member bank previously mentioned has since been reduced approximately 65 per cent and it is believed that little losses will be incurred. Each year more success it attained in requesting financial statements, yet there is still considerable misunderstanding in this territory regarding the purpose and necessity of procuring statements. This department examined 16,804 notes, of which 1,937 were rejected. The Cash Department received 4,943 shipments of coin and currency, aggregating $46,604,363.32. Outgoing shipments aggregating 3,524 of a dollar value of $54,123,069.82 were made. The ban placed on foreign moneys by the Mexican Government swelled the receipts considerably and the currency received was badly mutilated. Wire transfers received totaled $270,191,845.16 and those sent, $172,131,680.35. The activities of the Collection Department have increased steadily throughout the year. Items aggregating 19,415, totaling $27,629,014.98 were received, and of same 16,587 aggregating $25,705,206.64 were collected. The Transit Department handled 5,040,492 items, the dollar value of which was $1,265,756,781.29, as compared to 5,235,955 checks amounting to $2,138,087,919.62 during 1920. From the above figures it will be observed that there was not a great difference in the number of items handled in 1921 as compared to 1920. However, the dollar value was almost twice as large in the latter year, which indicates, in a measure, the further downward trend of prices. The largest number of checks handled in one day was 30,125 and the smallest 10,795. An average of 22 employes handled the affairs of this department. At the close of business December 31,1920, trust custodies totaled $7,741,531, represented by 431 trust receipts, but by the same date in 1921 had increased to $10,733,590.46, against which 546 receipts were outstanding. In connection with member bank liquidation it is interesting to note that of the 34 Federal Reserve Bank of Dallas figure first given securities aggregating, in round figures, $5,000,000 were pledged as collateral and $2,000,000 were held for safe-keeping, while one year later, or at the close of business in 1921, securities pledged as collateral totaled only $4,000,000, and those held for safe-keeping had increased to $6,600,000. In April work was begun on the new building, which will be ready for occupancy by February 1, 1922. It will consist of two floors, mezzanine and basement and its cost, including fixtures and vault, will be approximately $350,000. The building is designed along simple architectural lines and the plans contemplate a structure of modest, yet comfortable, appointments. Provision has been made for present requirements and future expansion of the branch's operations as far as the latter can be foreseen. Total earnings for 1921 were $618,931.90 and expenses were $219,986.55. The principal source of revenue was bills discounted, $575,131.62 of the gross earnings being derived from these transactions. REVIEW OF BUSINESS CONDITIONS IN 1921 The year 1921 will doubtless be recorded in the Eleventh Federal Reserve District as being the period in which occurred the most precipitous part of the descent of business activity from post-war peaks to normal or peace-time levels. While prices of both raw and manufactured products generally registered a greater decline in 1920 than during 1921, the latter year witnessed a much more pronounced slowing up of activity in all channels of production and distribution than was evident during 1920. The district's leading industry, cotton, set the pace in scaling production, the acreage in that community for 1921 being reduced approximately 25 per cent as compared with 1920. Oil, which ranks second in importance among the district's basic products, was the last commodity to yield to the economic forces which were inexorably bringing about a general lowering of price levels. At the beginning of. the year crude oil was still selling at the peak price of $3.50 per barrel, Federal Reserve Bank of Dallas 35 but violent breaks occurring in the market within the course of two months carried the price down to $1.75, greatly depressing the activities of this industry and causing many of the larger producing companies to suspend drilling operations. Livestock growers, confronted by a persistent and unprecedented shrinkage in the domestic and export demand for meat, continued to market their animals upon a steadily declining market until financial losses and the depletion of breeding herds brought about a situation which made it imperatively necessary to seek new means of financial relief. Under these conditions sales of calves at the principal slaughter markets of this district increased enormously, and at one time during the year reached a volume of such magnitude as to seriously endanger the future productivity of the livestock industry in the Southwest. In all lines of trade the depressing effects of the reduced buying power of agricultural communities made itself felt early in 1921 among wholesalers, jobbers and retailers alike. The farm implement trade, which constitutes one of the largest and most important lines of business in the Eleventh District, suffered more severely than any other branch, being more directly dependent upon the fortunes of the farmers themselves. The month of August marked the turning point of the year in the tide of business activity. A slight but appreciable improvement in the financial condition of the district was noticeable about the time the returns from the wheat crop were received, and throughout the fall season the improvement steadily increased as new money flowed into the district from the fall crop movement. The price of cotton, which had fallen as low as ten cents per pound early in the year, rose suddenly in August to the twenty cent level as a result of a bullish crop condition report. Most of this gain was maintained throughout the remaining months of the year. This development completely transformed, almost immediately, the entire aspect of the district's business situation. Wholesale trade was first to feel the effects of the changed conditions. Wholesalers and jobbers immediately encountered an enlarged and more confident buying demand, which was well sustained throughout the re- 36 Federal Reserve Bank of Dallas mainder of the year, despite a slight set-back in the price of cotton which occurred late in the month of November. Retail distribution also showed a corresponding improvement. The situation in the livestock industry took a more favorable turn early in the fall when financial assistance in the form of loans from the War Finance Corporation became available. At the end of December livestock loans aggregating approximately $16,000,000 had been distributed from this source among the banks and cattle loan companies in this district, making it possible for them to extend new credits for the purpose of further assisting the breeders through the present crisis. A sharp increase in building activities, reported by all of the large cities of the district, was one of the most important developments of the latter part of 1921, resulting in a marked stimulus to the lumber industry and other interests devoted to the production and distribution of building materials, as well as affording appreciable relief to the distressing problem of unemployment. Among other important evidences of a change for the better in the business situation which appeared in the latter part of the year was the steady increase in the demand for oil, the price of which had, on December 31, advanced to $2.25 per barrel; a continuous growth in the domestic and foreign consumption of cotton; a more encouraging prospect for an early resumption of the copper mines and smelters of Arizona and New Mexico; a more stable tendency in livestock prices; and a greatly improved capacity on the part of the banking institutions of the district for meeting the credit requirements of business and industry. Lower discount rates, reduced loans, and increased cash reserves reflect the stronger position of the banks of the district at the end of 1921, a situation quite in contrast to conditions at the close of 1920. The improvement in the banking situation is illustrated by the fact that on December 31,1920, our outstanding loans to member banks amounted to $97,000,000, of which $26,694,600 was rediscounted with other Federal Reserve Banks, whereas at the close of 1921, loans to member banks aggregated only $50,000,000, and our indebtedness to other Federal Reserve Banks had been retired. Federal Reserve Bank of Dallas 37 These facts seem to indicate clearly that the " corner has been turned" and that the affairs of the district as a wholeare now beginning to make definite headway in the direction of improvement. The situation is, however, unusaully '' spotted". The distribution of the funds received from the 1921 crops has been extremely uneven, due to geographical variations in crop and weather conditions, and while banks throughout most of West Texas reaped the benefit of abundant and profitable harvests, in other parts of the district the banks are in many instances still struggling with a most serious situation. Although the aggregate of our loans to member banks at the close of the year had receded to a sum that might perhaps be regarded as a "normal" amount, the banking situation has by no means attained normalcy as yet, the carry-over of "frozen loans" being still abnormally large, while the aggregate of liquid and desirable loans employed in financing the healthy activity of industry and trade, is still abnormally small. On the whole, however, the banks of the district appear to be steadily improving their position and are awaiting with increasing confidence the demands that will be made upon them in 1922. The comparative statistics tabulated below and appended charts furnish a summary of the principal indices of business and industrial conditions in the district during the year 1921. TEXAS CROP AND MINERAL PRODUCTION. Valuation Production 1921 1920 Increase or Decrease Per Cent Bales of cotton 2,200,000 4,345,000 — 49.4 Bushels of wheat _ 20,810,000 20,579,000 + 1.1 Bushels of oats 33,570,000 32,780,000 + 2.4 Bushels of corn ....156,920,000 142,662,000 + 10.0 Bushels of grain sorghum 56,550,000 60,992,000 — 7.3 Barrels of petroleum _..109,652,586 103,460,160 + 6.0 1921 $177,100,000 20,810,000 13,092,000 84,737,000 23,186,000 1920 Increase or Decrease Per Cent $286,789,000 35,396,000 21,635,000 119,836,000 73,800,000 — — — — — 38.2 41.2 39.5 29.3 68.6 to 39 Federal Reserve Bank of Dallas FEDERAL RESERVE BANK OF DALLAS MOVEMENT OF EARNING ASSETS DURING 1920 AND 1921 MILLIONS OF DOLLARS MILLIONS OF DOLLAR UNITED STATES SECURITIES 20 A / ///yy// W/AW/A V/A •y// YAA y /A 40 PURCHASED BILLS 20 160 DISCOUNTED BILLS S££ NOTE BELOW 140 140 120 100 80 60 40 20 140 140 TOTAL EARNING ASSETS 120 120 100 100 80 1920 1921 A - Paper secured by D. 3. OOTernae&t obligations diaooimted for banks in district. B - Total paper discounted for banks in district. C - Total dlsoounted paper held. Spaee between lines 3 and C represents - where above line B - paper discounted for, and - where below U n a B - paper redisoomted with, other Federal Eeserre Banks. EXHIBIT A MOVEMENT OF PRINCIPAL ASSET AND LIABILITY ITEMS DURING 1921 (Amounts in Thousands of Dollars) Reserve Percentages (2) DISCOUNTED BILLS Discounted for Member Banks in this District 1H SO 1 Jan. Jan. Jan. Jan. Feb. Feb. Feb. Feb. Mar. Mar. Mar. Mar. Apr. Apr. Apr. 7 14 21 28 4 11 18 25 4 11 18 25 1 8 15 Apr. Apr. May May May May June June June June June 22 27 4 11 18 25 1 8 15 22 29 1 83,131 82,155 82,430 81,320 82,584 83,027 79,325 80,983 80,378 78,334 75,153 75,685 74,540 75,552 74,084 73,236 74,564 72,487 74,754 72,798 73,254 70,345 74,276 70,880 72,134 70,103 2 3 1 70,705 I 27,189 69,729 26,567 23,194 70,029 68,944 21,485 70,208 17,540 13,812 70,676 66,991 14,500 68,665 13,615 12,399 68,099 66,055 13,455 13,437 62,874 14,663 63,406 14,764 62,140 12,405 63,252 12,169 61,780 7,437 64,832 6,600 66,160 6,882 64,083 4,950 66,350 6,131 64,248 4,617 64,704 5,500 62,795 2,500 66,726 7,408 61,830 4,125 65,086 8,425 63,574 4 1 97,894 96,296 93,223 90,429 87,748 84,488 81,491 82,280 80,498 79,510 76,311 78,069 76,904 75,657 73,949 72,269 72,760 70,965 71,300 70,379 69,321 68,295 69,226 69,238 69,211 71,999 5 1 33,628 31,154 30,844 28,763 27,705 25,560 24,279 25,241 24,184 23,106 21,095 21,851 21,565 20,270 17,937 16,632 16,291 14,867 14,280 14,369 13,592 14,334 13,444 14,134 13,777 14,286 6 34.4 32.4 33.1 31.8 31.6 30.3 29.8 30.7 30.0 29.1 27.6 28.0 28.0 26.8 24.3 23.0 22.4 20.9 20.0 20.4 19.6 21.0 1 9.4 20.4 19.9 19.8 I 7 147 147 122 97 97 72 55 39 21 21 25 25 25 25 25 171 171 171 171 171 169 150 1 8 1 12,279 12,279 12,279 12,279 12,279 12,279 12,279 12,279 12,279 12,279 12,279 12,279 12,279 12,279 12,279 8,379 8,379 8,379 8,379 8,379 8,379 7,379 7,379 8,879 6,879 6,379 9 I 45,669 46,033 44,407 46,849 45,093 43,741 44,874 45,136 42,565 42,268 44,388 45,028 42,674 41,885 39,606 42,458 39,694 39,973 38,655 40,447 36,910 38,160 35,991 36,253 36,123 34,181 10 1 48,443 ! 49,582 50,607 52,187 52,520 53,653 53,689 52,164 50,865 53,874 56,123 56,436 51,613 49.872 46,901 47,760 48,870 44,950 45,891 46,835 46,974 45,450 45,768 45,858 45,924 44,563 11 1 78,280 75,263 74,397 72,363 71,369 69,029 67,152 66,020 66,763 64,119 61,848 59,947 59,215 58,607 57,461 56,844 55,095 54,615 54,127 51,734 50,144 50,044 49,191 48,213 46,642 45,557 12 40.2 40.6 39.8 41.4 40.0 39.0 40.9 40.4 39.1 39.6 37.6 38.7 38.5 38.6 38.0 40.6 38.2 40.1 38.6 41.0 38.0 40.0 37.9 38.5 39.0 37.9 I 13 16.3 17.2 19.0 22.4 24.4 26.7 27.7 28.2 27.7 27.0 26.2 26.1 25.2 27.2 26.3 33.5 31.8 33.2 33.7 34.8 33.3 34.2 35.3 30.7 34.6 28.6 ft -4 53 July July July July Aug. Aug. Aug. Aug. Aug. Sept. Sept. Sept. Sept. Oct. Oct. Oct. Oct. Nov. Nov. Nov. Nov. Nov. Dec. Dec. Dec. Dec. 6 13 20 27 3 10 17 24 31 7 14 21 28 5 11 19 26 2 9 16 23 30 7 14 21 28 66,633 64,360 65,013 64,099 61,867 61,723 60,701 61,420 59,912 59,998 57,869 64,044 66,523 65,096 64,749 62,245 62,885 60,425 61,015 60,447 59,372 59,608 58,537 57,931 57,131 56,086 60,144 57,845 58,524 57,620 55,388 55,244 54,252 54,971 53,713 54,527 52,495 59,124 61,680 60,483 60,036 57,497 58,137 55,677 56,217 55,814 54,639 54,875 53,804 53,223 52,436 51,391 10,450 16,445 18,287 19,136 19,220 17,735 19,753 21,726 24,610 24,059 24,295 18,266 14,851 12,108 7,649 8,225 8,465 7,251 5,495 970 2,487 3,000 1,877 1,000 70,594 74,290 76,811 76,756 74,608 72,979 74,005 76,697 78,323 78,586 76,790 77,390 76,531 72,591 67,685 65,722 66,602 62,928 61,712 56,784 57,126 57,875 55,681 54,223 52,436 51,391 14,470 13,684 14,501 14,466 14,406 13,586 13,536 14,035 14,781 14,639 13,950 14,770 14,993 14,865 12,812 13,266 13,487 13,664 11,909 10,668 12,052 11,938 10,387 10,093 9,834 9,512 20.5 18.4 18.9 18.8 19.3 18.6 18.3 18.3 18.9 18.6 18.2 19.1 19.6 20.5 18.9 20.2 20.3 21.7 19.3 18.8 21.1 20.6 18.7 18.6 18.8 18.5 110 136 110 100 100 100 70 70 70 42 20 20 70 70 170 205 205 205 255 90 190 190 190 165 165 165 6,379 6,379 6,379 6,379 6,379 6,379 6,379 6,379 6,129 5,429 5,354 4,900 4,773 4,543 4,543 4,543 4,543 4,543 4,543 4,543 4,543 4,543 4,543 4,543 4,530 4,530 35,200 35,340 35,529 34,416 33,761 34,274 33,467 31,950 31,921 32,809 34,865 34,092 35,141 36,618 34,016 35,052 33,966 33,682 33,152 33,597 31,600 32,424 34,479 33,726 40,467 38,493 44,557 44,032 44,492 42,925 41,284 42,615 42,708 42,763 40,515 41,348 42,983 46,264 48,388 46,356 47.406 47,796 46,465 43,882 44,321 45,450 43,196 45,815 45,298 45,428 47,310 49,042 (1) No acceptances were bought from or sold to other Federal Reserve Banks. (2) Prior to March 18, net deposits as given below were used in calculating reserve percentages: February 4 $41,393,000 January 7 $35,289,000 March 4 February 11 43,001,000 January 14 38,109,000 March 11 February 18 42,436,000 January 21 37,098,000 January 28 40,899,000 February 25 45,659,000 45,398 43,331 43,470 42,323 41,769 40,827 39,946 39,059 39,106 39,409 39,415 39,814 40,224 42,074 41,433 40,246 39,752 39,630 38,488 37,888 37,000 36,638 36,302 35,255 36,327 36,292 39.1 40.5 40.4 40.4 40.6 41.1 40.5 39.0 40.1 40.6 42.3 39.6 39.7 41.4 38.3 39.8 39.4 40.3 40.0 40.3 39.4 39.3 42.3 41.8 48.4 45.1 21.6 19.6 17.9 17.5 19.8 16.6 12.5 9.2 10.8 12.8 18.4 22.9 27.7 29.7 30.5 29.6 31.6 33.4 39.2 36.3 35.7 40.0 40.6 $42,125,000 42,718,000 (3) Adjusted percentages are calculated after increasing or reducing reserves held by the amount of accommodation extended to or received from other Federal Reserve Banks. A blank (—) in this column indicates that no accommodation was extended to or received from other Federal Reserve Banks. I3 o a 42 Federal Reserve Bank of Dallas FEDERAL RESERVE BANK OF DALLAS DEPOSITS, F. R.NOTE CIRCULATION, CASH RESERVES AND RESERVE RATIOS, 1920-1921 PER CENT PER CENT -AC 7 W L RE SEFWE DS JSTi 80 I 70 -4— 60 50 V 60 \ V" * - > —«• 40 \ 30 A ' I \ \ 20 "*- \ 1 10 ^ i •W ••* s * A \ t 1 MILLIONS OF DOLLARS MILLIONS OF DOLLARS 80 DEPOSITS 60 40 20 20 120 F. R. NOTE CIRCULATION 100 100 80 60 4O DEPOSIT AND F. R.NOTE LIABILITIES, L,AND TOTAL RESERVES, C 180 160 140 120 100 80 60 40 20 0 1920 1921 idjuated percentages are saloulated after reducing or increasing reserves held by the amount at aoconmadation received from or extended to other Federal Reserve banice. The deposit ourve is based on "net deposits" up to tlarch 11, 1921, and on deposits" thereafter. Digitized for "total FRASER 43 Federal Reserve Bank of Dallas SCHEDULE 1 COMPARATIVE STATEMENT OF CONDITION RESOURCES (In thousands of dollars) Dec. 31 Dec. 31 1921 Gold and gold certificates Gold settlement fund F. R. Board Gold with foreign agencies $ 7,263 8,518 Dec. 31 1920 $ 10,008 2,074 86 1919 $ 6,470 17,073 3,414 Total gold held by bank Gold with F. R. Agent Gold redemption fund 15,781 11,093 2,941 12,168 24,484 4,431 26,957 27,545 3,712 Total gold reserves Legal tender notes, silver, etc 29,815 6,149 41,083 4,455 58,214 1,197 35,964 45,538 59,411 8,962 41,635 165 15,903 54,793 247 39,376 18,940 6,421 Total bills on hand U. S. bonds and notes U. S. Certificates of indebtedness: One year certificates (Pittman Act) All other 50,762 2,630 70,943 3,979 64,737 3,966 1,900 8,300 8,300 765 Total earning assets Bank premises 5 per cent redemption fund against F. R. Bank notes Uncollected items All other resources 55,292 2,168 83,222 1,639 77,768 399 156 25,694 2,755 586 42,963 717 558 61,892 464 122,029 174,665 200,492 4,203 7,394 4,099 6,033 3,421 3,030 4,344 43,372 297 1,660 46,995 245 2,900 63,372 2,043 48,013 35,470 48,900 79,453 68,315 74,930 2,726 22,635 1,588 7,101 28,235 844 10,461 39,916 419 122,029 174,665 200,492 43.1 *40.1 *49.0 Total reserves Bills discounted: Secured by U. S. Gov't. obligations All other Bills bought in open market TOTAL RESOURCES LIABILITIES Capital paid in Surplus Deposits: Government Member bank-reserve account All other Total deposits F. R. notes in actual circulation F. R. bank notes in circulation—net liability Deferred availability items All other liabilities Total liabilities Ratio of total reserves to deposit and F. R. note liabilities combined •Calculated on basis of net deposits and F. R. notes in circulation. 44 Federal Reserve Bank of Dallas SCHEDULE 2 COMPARATIVE STATEMENT OF EARNINGS AND EXPENSES FOR YEARS 1919, 1920 and 1921 EARNINGS 1921 1920 1919 Discounted bills $3,829,840 $4,044,612 $2,443,806 Purchased bills 7,980 73,212 113,397 United States securities.... 171,151 270,874 229,080 Transfers—net earnings 89,339 350,969 193,661 Deficient reserve penalties 124,163 158,569 81,984 Miscellaneous 21,175 6,286 323 !-. ' Total earnings 4,243,648 CURRENT EXPENES Salaries: Bank officers 133,545 Clerical staff 735,904 Special officers and watchmen 34,598 All other 82,470 Governors' conferences 714 Federal Reserve Agents' conferences.. 295 Federal Advisory Council 200 Directors' meetings 7,004 Traveling expenses* 39,185 Assessments for Federal Reserve Board expenses 25,759 Legal fees 93 Insurance (life, fidelity, casualty, workmens' compensation and general liability) 39,607 Banking house: Taxes and fire insurance 37,599 Light, heat and power 27,632 Repairs and alterations 18,476 Rent, including light, heat and power and minor alterations 9,660 Fire insurance—Furniture and equipment 194 Printing and stationery (including office and other supplies) 114,405 Telephone 9,652 Telegraph 68,680 Security shipments **l,603 Currency and coin shipments **74,870 Postage and expressage (other than on money and security shipments) 69,946 Furniture and equipment 155,843 Federal Reserve currency: Original cost, including shipping charges 65,915 Cost of redemption, including shipping charges 23,150 Taxes on Federal Reserve bank-note circulation 22,286 All other expenses 61,571 Total current expenses Current net earnings 1,860,856 2,382,792 4,904,522 3,062,251 117,768 649,100 20,177 39,456 651 64 400 6,530 30,851 87,212 390,993 6,363 11,883 788 109 992 4,447 14,578 21,695 2,622 20,362 2,400 31,067 13,308 3,476 6,896 13,797 1,746 3,365 13,194 14,904 5,526 67,998 3,938 56,900 41,009 3,189 21,772 79,352 51,075 65,506 82,883 39,883 70,718 86,514 85,719 22,825 8,028 46,397 78,080 42,829 41,348 1,549,847 3,354,675 982,836 2,079,415 Federal Reserve Bank of Dallas 45 EARNINGS AND EXPENSES (Cont'd) PROFIT AND LOSS ACCOUNT Earnings Current expenses 1921 $4,243,648 1,860,856 1920 $4,904,522 1,549,847 1919 $3,062,251 982,836 Current net earnings 2,382,792 3,354,675 2,079,415 884 16,167 43 470 884 16,210 470 139,230 561,500 130,963 Additions to current net earnings: Assessment a/c expenses Federal Reserve Board, previously charged to profit and loss _ All other Total additions Deductions from current net earnings: Depreciation allowances on Bank Premises , Reserve for possible losses Reserve for depreciation on U. S. bonds Assessment a/c expenses Federal Reserve Board All other 49,295 20,087 11,691 16,167 21,854 Total deductions 770,112 Net deductions from current net earnings 769,228 Net earnings available for dividends, surplus and franchise tax 1,613,564 Dividends paid 252,211 Transferred to surplus account 1,361,353 142,654 38,021 126,444 37,551 3,228,231 225,424 3,002,807 2,041,864 196,335 1,845,529 *Other than those connected with Governors' and Agents' conferences and meetings of directors and of the Advisory Council. **Cost of security shipments from January to June included with cost of currency and coin shipments. 46 Federal Reserve Bank of Dallas SCHEDULE 3 STATEMENT OF DISPOSITION OF INCOME CALENDAR YEAR 1921 Income: Discount on bills discounted Discount on bills purchased Interest on U. S. Securities Transfers bought and sold—net charges Penalties on deficient reserves Miscellaneous profits $3,829,839.95 7,979.58 171,150.92 89,339.43 124,163.47 21,175.03 Total income $4,243,648.38 Less: Expense current $1,778,247.80 Depreciation on bank buildings and furniture and equipment 221,838.00 Dividends paid June 30th 124,618.69 Dividends paid December 31st 127,592.24 Reserve for possible losses account liquidating banks 561,500.00 Reserve for depreciation on U. S. Securities 49,294.50 Other miscellaneous losses 19,204.15 Net profits—calendar year 1921 Disposition of accumulated Net profits: Transferred to Surplus June 30th Transferred to Surplus December 31st 2,882,295.38 1,361,353.00 1,079,933.42 281,419,58 $1,361,353.00 $1,361,353.00 SCHEDULE 4 VOLUME OF PAPER DISCOUNTED AND BOUGHT, BY MONTHS, DURING 1921, CLASSIFIED ACCORDING TO CHARACTER OF PAPER, WITH TOTAL FOR THREE PRECEDING YEARS Purchased Paper DISCOUNTED PAPER MONTH TOTAL Secured by Gov't. War Obligations Banker's Acceptances Trade Acceptances All Other Banker's Acceptances 60,685,854 79,903 556,189 30,421,330 None 91,743,276 January .... 49,190,814 None None 198,143 17,985,441 67,374,398 February .. 50,440,970 54,210 440,032 22,516,471 20,906 73,451,683 March 42,338,479 None 3,916 372,187 21,840,417 64,551,083 April 34,388,996 None 362,173 25,594,173 150,000 60,345,342 May 34,145,816 None 356,253 31,133,486 19,200 65,635,555 June 27,620,528 None 323,066 31,171,127 60,000 59,114,721 July 34,446,349 None 448,869 28,537,223 20,000 63,432,441 August 36,497,679 None 166,301 28,880,565 50,000 65,544,545 Sept 35,493,239 None 345,362 26,611,742 155,000 62,450,343 October .... 27,166,867 None 194,083 25,954,438 200,000 Nov 53,315,388 22,269,170 20,000 102,134 22,646,409 15,000 45,037,713 Dec 694,022| 771,996,488| 454,684,761 154,113 ,864,792 313,292,822 Total 1921 Total 1920 1,280,178,511| 999,942,925 703,722 5 ,670,523 273,861,341 8,348,277 Total 1919 1 ,124,946,145| 1,105,059,651 None 1 ,887,002 117,999,492 12,415,232| Total 1918 587,677,766| 447,833,088 None 2 ,056,753 137,787,920 25,024,122] 47,052,564| 11,272,269 None 177,953 35,602,378 9,743,505| Total 1917 TOTAL PAPER DISCOUNTED AND PURCHASED 1921 91,743,276 67,374,398 73,472,589 64,554,999 60,495,342 65,654,755 59,174,721 63,452,441 65,594,545 62,605,343 53,515,388 45,052,713 772,690,510| 1920 83,946,095 76,350,062 93,928,153 108,952,001 111,446,184 117,350,253 110,216,572 111,587,861 124,573,279 114,948,296 124,346,664 110,881,368 1919 92,139,895 93,354,695 104,925,502 117,860,855 130,702,524 113,247,122 100,213,598 95,139,511 118,337,284 138,314,107 72,583,833 60,542,451 1918 10,708 ,111 ^3 12,517 ,136 g 23,986 ,654 <* 39,650 ,522 3 39,333 ,585 « 45,453 ,965 ^ 52,244 ,194 gS 68,294 ,345 § 76,261 ,394 ?•87,663 ,080 o 77,499 ,588*-<79,089 ,314 M 1,288,526,788| 1,237,361,377| | 612,701,888 48 Federal Reserve Bank of Dallas SCHEDULE 5 REDISCOUNTS Volume of Rediscounts for 1921: Rediscounts for member banks $ 771,996,488.00 Acceptances purchased — 694,022.00 Acceptances purchased for our account by other Federal reserve banks None Other paper rediscounted for other Federal reserve banks None Total $ 772,690,510.00 Volume of Rediscounts for 1920: Rediscounts for member banks $1,280,178,511.55 Acceptances purchased 7,726,192.55 Acceptances purchased for our account, by other Federal reserve banks 622,085.00 Other paper rediscounted for other Federal reserve banks 143,000,000.00 Total $1,431,526,790.10 Total number of banks served in 1921 Total number of new banks served in 1921 Largest note rediscounted in 1921 Smallest note rediscounted in 1921 704 46 $1,650,000.00 10.35 SCHEDULE 6 NUMBER OF BANKS ACCOMMODATED THROUGH THE DISCOUNT OF PAPER DURING 1921, DISTRIBUTED BY STATES Texas Oklahoma Louisiana New Mexico Arizona 607 31 17 39 10 Total 704 SCHEDULE 7 REDISCOUNTS FOR 1921 BY MONTHS AND DISTRIBUTION BY STATES New Month Texas Oklahoma Louisiana Mexico Arizona Total January 82,295,867 3,251,935 2,886,464 2,720,677 588,333 91,743,276 February 59,919,963 2,254,337 2,640,944 1,580,265 978,889 67,374,398 March 65,120,234 1,922,734 3,426,279 2,163,064 819,372 73,451,683 April 59,503,986 1,570,290 1,815,588 1,257,581 403,638 64,551,083 May 54,702,180 1,476,095 1,845,135 1,994,318 327,614 60,345,342 June 59,152,323 1,570,240 2,299,457 2,063,206 550,329 65,635,555 July — 52,603,235 1,614,271 2,694,049 1,825,205 377,961 59,114,721 August 57,427,349 1,513,573 2,151,288 1,656,916 683,315 63,432,441 September 60,954,486 1,117,940 1,486,538 1,415,953 569,628 65,544,545 October 57,420,601 1,790,790 1,282,036 1,607,350 349,566 62,450,343 November 47,029,139 2,844,166 1,627,105 1,410,917 404,061 53,315,388 December 38,706,002 2,015,117 2,096,518 1,799,252 420,824 45,037,713 Total 694,835,365 22,941,488 26,251,401 21,494,704 6,473,530 771,996,488; Federal Reserve Bank of Dallas 49 SCHEDULE 8 DISCOUNT RATES FOR 1921 AND DATES ON WHICH EFFECTIVE CLASS OF PAPER Time Jan. 1 Feb. 15 May 16 June 25 Nov. 4 Industrial and Commercial.. 90 days 6 7 6% 6 5% Agricultural and Livestock.. 6 mon. 6 7 6% 6 5% Trade Acceptances 90 days 6 7 6% 6 5% Rediscounts secured by L. L. B. and Vic. Notes 90 days 5% 6 6 6 5% Rediscounts secured by U. S. Cert, of Indebt 90 days 5 6 6 6 5% M. B. C. Notes secured by L. L. B. and Vic. Notes 15 days 5% 6 6 6 5% M. B. C. Notes secured by C. of 1 15 days 5 6 6 6 5% M. B. C. Notes secured by Eligible Paper 15 days 6 7 6% 6 5% Notes secured by Treasury Certificates of Indebtedness discounted at the rate borne by the Certificate attached with a minimum rate of 5%. Bankers' Acceptances purchased at market rates subject to agreement. SCHEDULE 9 CLASSIFICATION BY MATURITIES OF BILLS DISCOUNTED AND BOUGHT IN 1921 Due Due Due Due Due within fifteen days within thirty days within sixty days within ninety days after ninety days $506,367,345 26,252,446 69,605,455 110,417,555 60,047,709 Total $772,690,510 SCHEDULE 10 CLASSIFICATION OF TRADE ACCEPTANCES BY MATURITIES Due Due Due Due within within within within fifteen days thirty days sixty days ninety days $ 290,210 1,043,252 1,402,079 1,129,251 Total $3,864,792 SCHEDULE 11 CLASSIFICATION OF BILL LADING DRAFTS AS TO COMMODITY Based on grain and grain products Based on cotton and cotton products Based on hay Based on beans Based on rice Miscellaneous products Total $1,000,220.76 1,652,553.97 382,028.14 42,520.10 236,909.93 27,310.78 $3,341,543.68 50 Federal Reserve Bank of Dallas SCHEDULE 12 STATEMENT OF BANKERS'ACCEPTANCES—RATES AND TIME Amount Amount Amount Amount Amount purchased purchased purchased purchased purchased at at at at at 5 per cent 5y2 per cent 6 per cent 6% per cent 7 per cent Total Due Due Due Due within within within within $100,000.00 64,840.00 358,276.00 150,000.00 20,906.70 $694,022.70 fifteen days thirty days sixty days ninety days $ 19,200.00 204,076.00 259,840.00 210,906.70 Total $694,022.70 SCHEDULE 13 OPERATIONS IN UNITED STATES BONDS AND SECURITIES FOR THE YEAR 1921 AND TREASURY NOTES HELD ON DECEMBER 31, 1921 Registered 2% Consuls of 1930 Registered 2% Panama Bonds 1938 Registered 2% Panama Bonds 1936 Registered 3% Conversion Bonds 1946 Registered 3% Conversion Bonds 1947 Registered 2% U. S. Special Certificates of Indebtedness First Series 3%% Liberty Loan Bonds Second Series 4% Liberty Loan Bonds Third Series 4\i% Liberty Loan Bonds Fourth Series 4*4% Liberty Loan Bonds Victory 4%% Loan Notes Total $ 2,450,900.00 155,000.00 126,500.00 507,400.00 726,200.00 8,300,000.00 600.00 1,100.00 2,700.00 4,700.00 4,150.00 $12,279,250.00 PURCHASES AND SALES OF UNITED STATES SECURITIES FOR THE YEAR 1921 Registered 2% Consuls of 1930 sold to A. S. Pratt & Son, Washington, D. C, at par $ 1,055,000.00 Registered 2% Panama Bonds 1936-38 par to A. S. Pratt & Son 281,500.00 U. S. 2% Certificates of Indebtedness sold to U. S. Treasury at par 6,400,000.00 U. S. 4% Certificates of Indebtedness sold at par to the Treasury of the United States 3,000,000.00 V. S. 5% Certificates of Indebtedness sold at par to various banks and individuals 100,000.00 U. S. 5%% Certificates of Indebtedness sold to various banks and individuals 370,000.00 U. S. 5V2% Certificates of Indebtedness sold on New York market at par 100,000.00 First Series 3%% L. L. Bonds sold through Federal Reserve Bank, New York, at $95.54 600.00 Federal Reserve Bank of Dallas 51 Second Series 4*4% L. L- Bonds sold through Federal Reserve Bank, New York, at $97.08 Second Series 4*4% L. L. Bonds sold through Federal Reserve Bank, New York, at $96.98 Third Series 4 ^ % L. L. Bonds sold through Federal Reserve Bank, New York, at $97.62 Fourth Series 4*4% L. L. Bonds sold through Federal Reserve Bank, New York, at $95.52 Fourth Series 4%% L. L. Bonds sold through Federal Reserve Bank, New York, at $97.38 Fourth Series 4*4% L. L. Bonds sold through Federal Reserve Bank, New York, at $97.28 Victory Notes 4%% sold through Federal Reserve Bank, New York, at $99.98 Victory Notes 4%% sold through Federal Reserve Bank, New York, at $99.88 Total 1,000.00 100.00 2,000.00 700.00 4,000.00 700.00 4,000.00 150.00 $11,319,750.00 U. S. 4% Certificates of Indebtedness purchased from U. S. Treasury at par $ 1,000,000.00 U. S. 4% Certificates of Indebtedness bought at par from the U. S. Treasury 2,000,000.00 U. S. 5% Certificates of Indebtedness bought at par from the U. S. Treasury 100,000.00 U. S. 5%% Certificates of Indebtedness bought at par from the TJ. S. Treasury 370,000.00 U. S. 5V2% Certificates of Indebtedness bought from City National Bank, Dallas, Texas, at par 100,000.00 Total $3,570,000.00 UNITED STATES BONDS AND TREASURY NOTES HELD ON DECEMBER 31, 1921 Registered 2% Consols 1930 Registered 3% Conversions 1946-7 U. S. Certificates of Indebtedness Pitman Act Total $1,395,900.00 1,233,600.00 1,900,000.00 $4,529,500.00 SCHEDULE 14 MEMBER BANKS COLLATERAL NOTES Total amount of member banks collateral notes Total number of banks accommodated in this manner $497,862,178.10 507 PAPER SECURED BY UNITED STATES BONDS AND CERTIFICATES OF INDEBTEDNESS Member banks collateral notes Member banks rediscounts Total $448,378,815.75 6,305,945.00 $454,684,760.75 C to SCHEDULE 15 DAILY AVERAGE EARNING ASSETS, EARNINGS THEREON AND AVERAGE RATE PER ANNUM, YEAR 1921, AS COMPARED WITH YEAR 1920 Earning Assets 1921 1920 Bills discounted members and other F. R. Banks .$61,237,903.81 $71,270,731.02 Bills bought in open market and from other F. R. Banks., 115,882.35 1,333,574.79 United States Securities Total 7,979.58* 73,211.72 Average Rate 1921 1920 6.25 5.67 6.88** 5.49 7,877,780.82 12,840,190.58 171,150.92 270,874.35 2.17 2.11 $69,231,566.98 $85,444,496.39 $4,008,970.45 $4,388,698.41 5.79 5.14 •Includes $905.35 earned in 1920, but credited in 1921. **Actual rate on 1921 earnings 6.10. Earnings 1921 1920 $3,829,839.95 $4,044,612.34 Federal Reserve Bank of Dallas 53 SCHEDULE 16 PAPER REDISCOUNTED WITH. OTHER FEDERAL RESERVE BANKS DURING EACH MONTH OF 1921 MONTH January February March April May June July August September October November , December Totals for Year. F. R. B. Boston None None None 7,500,000 10,000,000 18,000,000 25,000,000 31,500,000 23,000,000 20,500,000 12,500,000 3,000,000 151,000,000 F. R. B. Cleveland 49,000,000 34,500,000 33,000,000 17,500,000 None None 9,000,000 5,500,000 6,500,000 None None None 155,000,000 Ox SCHEDULE 17 OPERATIONS OF FEDERAL RESERVE CLEARING SYSTEM (Figures Include Cash Items Only) (NUMBERS IN THOUSANDS; AMOUNTS IN THOUSANDS OF DOLLARS) Items drawn on banks in own district PERIOD Located in F. R. Bank and branch cities Number i Amount Located outside F. K. Bank and branch cities Number Amount Items drawn on Items forwarded to other F. R. Treasurer of Banks and their United States branches Number I Amount Number Amount ft Total Number* 2 1921 120$ " 5 M 6 8 Jan. 1 to Jan. 15 962 T467T66 59 $ 4,065 61 "277)23 1,202 228 106,970 1,851 259,466 Jan. 16 to Feb. 15.... 89 7,995 127 36,370 2,295 230 101,883 1,782 Feb. 16 to Mar. 15... 232,296 77 7,893 103 26,262 2.192 268 111,757 2,029 241,430 103 9,686 112 27,887 2,512 Mar. 16 to Apr. 15... 7,579 100 21,031 2,388 222 Apr. 16 to May 15... 201,384 104 92,744 1,842 247 7,937 109 21,548 2,421 May 16 to June 15... 205,722 96 96,689 1,969 9,601 100 17,445 2,162 214 June 16 to July 15... 190,084 102 88,962 1,746 220 82 14,677 2,011 7,149 July 16 to Aug. 15... 194,163 77 84,434 1,632 88 15,191 2,3'J3 7,258 244 Aug. 16 to Sept. 15... 207,537 71 93,226 1,920 265 125,742 1,871 271,613 84 16,309 2,316 7,640 Sept. 16 to Oct. 15... 96 272 119,694 1,739 Oct. 16 to Nov. 15... 255,305 108 85 18,173 2,204 8,529 Nov. 16 to Dec. 15... 276 112,152 1,733 238,053 94 93 15,693 2,196 9,666 9,628 1,187 Dec. 16 to Dec. 31... 149 916 122,043 52 4,278 70 59,108 2,955 1,251,829 21,992 2,765,162 1,146 99,276 1,196 267,237 27,289 Total: 1921. 2,294 1,871,511 23,021 4,303,032 1,145 107,662 1,831 787,181 1920. 1,151 1,144,256 9,592 2,697,699 1,265 157,169 1,405 686,844 1919. •Exclusive of duplications on account of items handled by both parent bank and branch. Total Amount* 1920 | 1,049 2,273 2,306 2,313 2,250 2,321 2,262 2,257 2,270 2,482 2,591 2,534 1,383 1919 367 843 838 969 891 837 840 944 930 1,196 1,737 1,917 1,104 28,291 13,413 1921 235,622 410,801 368,334 390,760 322,738 331,896 306,092 300,423 323,212 421,304 401,701 375,564 195,057 4,383,504 1920 329,683 696,538 738,284 631,143 549,966 533,994 494,151 490,131 514,815 664,420 632,340 537,801 256,120 1819 148,465 297,204 % 261,903 3 308,133 oj 327,488 ^ 342,675 g 320,624 3 338,427 ? 369,124 O 376,001^ 652,375 O 602,815 § 340,671 a 7,069,386 4,685,968 OPERATIONS OF CHECK CLEARING AND COLLECTION DEPARTMENT DURING 1919, 1920 and 1921 Million! at J F MA M J J A S 0 N D J F M 32 30 28 24 22 70 18 IB / \ A 14 s 10 8 6 4 ? s s 0 N D J F MA M J J A 0 N D 160 A / \ \\ \ \ 26 12 M J J /A A - — V.. ../ f \ 140 130 1 / J// ss —y \ 120 \ 1 10 V \.. J \no *•—_ — -\ / / s —^ 1 *^_ 90 to 80 9 70 J 60 50 A- — ..... f at noun Dni/ /• tcmt died AC d/rrf 3C ot •—•» R - — o r~ J / ISO Dnil r at rraq ?o 19 19 19 ?0 ?l n 56 Federal Reserve Bank of Dallas SCHEDULE 18 NUMBER AND AMOUNTS OF WIRE TRANSFERS SOLD BY MONTHS FOR THE YEAR 1921 January February March April May June July August September October November December Total Number 1,142 958 1,067 1,057 1,158 1,176 1,148 1,284 1,409 1,534 1,370 1,370 Amount $ 36,631,000 29,340,000 36,718,000 28,418,000 39,380,000 46,539,000 39,804,000 39,886,000 42,299,000 41,852,000 41,570,000 46,893,000 14,673 $469,330,000 SCHEDULE 19 NEW NATIONAL BANKS, 1921 OKLAHOMA Boswell Idabel Citizens National Bank Idabel National Bank TEXAS Arlington Canadian Clifton Dallas Electra Farwell Fort Worth Houston Houston Houston Mercedes Mexia Nocona Quinlan Farmers National Bank Southwestern National Bank Clifton National Bank Southwest National Bank Security National Bank Farwell National Bank Continental National Bank Guaranty National Bank Public National Bank State National Bank First National Bank City National Bank Peoples National Bank First National Bank Federal Reserve Bank of Dallas 57 SCHEDULE 20 NATIONAL BANKS LIQUIDATING DURING 1921 LOUISIANA Homer Monroe American National Bank...Liquidated—Succeeded by Commercial Natl. Bank Citizens National Bank .Consolidated with Ouichita National Bank TEXAS Childress Cisco Cleburne Cooper Crawford Dallas Desdemona Eastland Eastland Fort Worth Hearne Jakehamon Necessity Nocona Piano Ranger Sealey Sipe Springs Venus West Columbia Wichita Falls Wichita Falls City National Bank Liquidated—Succeeded by City Guaranty State Bk. American N a t i o n ! Bank...Liquidated—Succeeded by Guar. State Bk. & Tr. Co. Natl. Bank of Cleburne Insolvent. Farmers National Bank Insolvent. First National Bank Insolvent. Security National Bank Liquidated—Succeeded by Southwest National Bk. First National Bank [nsolvent. American National Bank... Consolidated with Security State Bank & Trust Co. City National Bank Liquidated—Succeeded by Security State Bank & Trust Co. Natl. Bank of Commerce Liquidated—Succeeded by Continental National Bk. First National Bank Insolvent. First National Bank .Liquidated First National Bank Liquidated .Nocona National Bank Liquidated—Succeeded by Peoples National Bank F. & M. National Bank Liquidated—Succeeded by Farmers State Bank First National Bank Insolvent. Farmers National Bank Consolidated with Sealey National Bank First National Bank Insolvent. First National Bank Consolidated with Farmers National Bank First National Bank Liquidated—Assets purchased by Guaranty State Bank American National Bank...Liquidated—Succeeded by First National Bank Exchange National Bank.... Liquidated. Federal Reserve Bank of Dallas SCHEDULE 21 NEW STATE BANKS, 1921 TEXAS Caddo Mills Childress Cohoma Commerce Como Cooper Decatur Emhouse Greenville Hamilton Josephine Killeen Mission Murchison Paradise Penelope Perrin Piano Quinlan Richland Robstown Streetman Teague Wharton West Yoakum Caddo Mills State Bank City Guaranty State Bank First State Bank State Bank of Commerce Como State Bank Security State Bank Security State Bank First State Bank Citizens State Bank Hamilton Bank & Trust Company Josephine State Bank Guaranty State Bank First State Bank .First State Bank Paradise State Bank Penelope State Bank First State Bank Farmers State Bank First State Bank First State Bank Guaranty State Bank First State Bank First State Bank Wharton Bank & Trust Company First State Bank Yoakum State Bank SCHEDULE 22 STATE BANKS LIQUIDATING DURING 1921 NEW MEXICO Mountainair Mountainair State Bank Insolvent. TEXAS Colorado Denison Henderson Houston Jacksonville Quinlan First State Bank Liquidated—Taken over by Colorado National Bank Denison Bank & Trust Co....Liquidated—Succeeded by Citizens State Bank First State Bank Insolvent. State Bank & Trust Co Converted into State National Bank Farmers Guaranty St. Bk Insolvent. First State Bank Liquidated—Succeeded by First National Bank 59 Federal Reserve Bank of Dallas SCHEDULE 23 TOTAL STATE BANK MEMBERSHIP, ELEVENTH FEDERAL RESERVE DISTRICT, DECEMBER 31, 1921 ARIZONA Safford Tombstone Bank of Safford Cochise County State Bank Capital $ 33,000 30,000 Surplus $ 42,000 10,000 Total Resources $ 587,000 295,000 LOUISIANA Monroe Shreveport Central Savings Bk. & Trust Co. 375,000 300,000 Continental Bank & Trust Co 125,000 100,000 3,199.000 4,288.000 NEW MEXICO Albuquerque Cloudcroft Corona *Lovington Portales State Trust & Savings Bank First State Bank Stockmens State Bank First Territorial Bank Security State Bank 100,000 25,000 30,000 60,000 25,000 80,000 3,000 6,000 43,000 5,000 1,105,000 95,000 109,000 428,000 246,000 OKLAHOMA Broken Bow Coleman Fort Towson Valliant McCurtain County Bank Coleman State Bank First State Bank Farmers State Guaranty Bank.... 25,000 25,000 50,000 50,000 3,000 3,000 10,000 2,000 218,000 189,000 263,000 306,000 TEXAS Alice Alpine Alto Anson Avery Ballinger Bay City Bay City Beaumont Beaumont Beeville Bishop Bomarton Bonham Bonham Bremond Bridgeport Brownfield Bryan Caddo Mills Canton Canyon Celina Celina Childress Childress Clarendon Clifton Clifton Coahoma *Collinsville Commerce Commerce Como Citizens State Bank Alpine State Bank Alto State Bank Anson State Bank Avery State Bank Ballinger State Bk. & Trust Co. Bay City Bank & Trust Co First State Bank Guaranty Bank & Trust Co Texas Bank & Trust Co Beeville Bank & Trust Co First State Bank First State Bank Fannin County Bank First State Bank First State Bank Bridgeport State Bank Brownfield State Bank First State Bank & Trust Co Caddo Mills State Bank Texas State Bank First State Bank Celina State Bank First State Bank City Guaranty State Bank .Farmers & Mechanics State Bank Farmers State Bank Farmers Guaranty State Bank.. First Guaranty State Bank -First State Bank First Guaranty State Bank Citizens State Bank State Bank of Commerce Como State Bank 60,000 30,000 25,000 50,000 25,000 60,000 65,000 100,000 100,000 250,000 50,000 25,000 32,000 100,000 200,000 50,000 25,000 25,000 100,000 30,000 50,000 40,000 35,000 50,000 100,000 50,000 50,000 30,000 40,000 25,000 25,000 25,000 50,000 25,000 20,000 40,000 12,000 55,000 12,000 4,000 20,000 10,000 20,000 130,000 32,000 10,000 1,000 50,000 100,000 12,000 5,000 25,000 50,000 21,000 25,000 6,000 3,000 419,000 275,000 235,000 503,000 94,000 336,000 471,000 548,000 1,577,000 2,736,000 380,000 341,000 159,000 919,000 1,584,000 393,000 148,000 253,000 809,000 159,000 166,000 267,000 171,000 291,000 571,000 842,000 205,000 307,000 235,000 122,000 183,000 161,000 253,000 174,000 10,000 60,000 10,000 30,000 20,000 1,000 8,000 12,000 3,000 25,000 60 Federal Reserve Bank of Dallas SCHEDULE 23—Continued Cooper Copperas Cove Corsicana Cross Plains Crowell Cuero Dallas Dallas Dallas Decatur DeKalb Del Rio Denton East Bernard Edgewood El Paso El Paso El Paso Emhouse Falfurrias Ferris Flatonia Floydada Forney Franklin Frost Galveston Galveston Ganado * Gatesville Georgetown George West Gilmer Goldthwaite Gonzales Graford Grand Prairie Grand Prairie Greenville Hallsville Hamilton Hamlin Hedley Hereford Hillsboro Italy Jacksonville Josephine Junction Kaufman Kenedy Kenedy Kerens Kilgore Killeen Killeen Kirkland Capital Security State Bank 100,000 First State Bank 35,000 First State Bank 200,000 First Guaranty State Bank 30,000 First State Bank 30,000 First State Bank & Trust Co 100,000 Central State Bank 1,000,000 Dallas County State Bank 250,000 Guaranty Bank & Trust Co 1,000,000 Security State Bank 60,000 First State Bank 100,000 Del Rio Bank & Trust Co 100,000 First Guaranty State Bank 50,000 Union State Bank 50,000 Farmers & Merchants State Bank 35,000 American Trust & Savings Bank 350,000 El Paso Bank & Trust Co 200,000 Security Bank & Trust Co 200,000 First State Bank 30,000 Falfurrias State Bank 75,000 Farmers & Merchants State Bank 50,000 Flatonia State Bank 50,000 First State Bank 50,000 Forney State Bank 25,000 First State Bank 30,000 Citizens State Bank 25,000 South Texas State Bank 200,000 Texas Bank & Trust Co 400,000 Farmers State Bank 35,000 Guaranty State Bank & Trust Co. 50,000 Farmers State Bank 50,000 First State Bank 50,000 Gilmer State Bank 50,000 Trent State Bank 100,000 Gonzales State Bank & Trust Co. 75,000 First State Bank 50,000 First State Bank 40,000 Guaranty State Bank 25,000 Citizens State Bank 100,000 Farmers State Bank 25,000 Hamilton Bank & Trust Co 50,000 First State Bank 40,000 Guaranty State Bank 25,000 First State Bank & Trust Co 50,000 First State Bank 150,000 Farmers State Bank 50,000 First Guaranty State Bank 63,000 Josephine State Bank 30,000 Junction State Bank 100,000 First State Bank 100,000 Farmers & Merchants State Bank 50,000 First State Bank & Trust Co 60,000 First State Bank 50,000 Kilgore State Bank 25,000 First State Bank 35,000 Guaranty State Bank 30,000 First State Bank 50,000 Surplus 5,000 40,000 3,000 30,000 50,000 500,000 110,000 125,000 25,000 80,000 8,000 10,000 12,000 50,000 26,000 25,000 20,000 2,000 15,000 5,000 15,000 20,000 15,000 50,000 150,000 600,000 2,000 13,000 50,000 18,000 4,000 50,000 25,000 20,000 20,000 1,000 5,000 1,000 50,000 20,000 12,000 50,000 15,000 12,000 25,000 6,000 110,000 80,000 50,000 90,000 30,000 13,000 16,000 2,000 Total Resources 620,000 177,000 1,083,000 238,000 326,000 503,000 5,890,000 2,905,000 8,359,000 154,000 351,000 448,000 363,000 218,000 149,000 3,015,000 2,339,000 1,808,000 113,000 293,000 270,000 421,000 482,000 155,000 289,000 213,000 3,689,000 7,232,000 88,000 428,000 708,000 218,000 157,000 691,000 498,000 204,000 246,000 108,000 377,000 224,000 328,000 431,000 94,000 473,000 887,000 322,000 593,000 105,000 750,000 622,000 331,000 531,000 250,000 120,000 301,000 107,000 229,000 Federal Reserve Bank of Dallas 61 SCHEDULE 23—Continued Ladonia LaFeria Lamesa Leaky Leonard Liberty Lockney Longview Loraine Lorenzo Lubbock Lubbock Lufkin Luling Luling Madisonville Malone Matador Mathis Maypearl Maypearl McAllen McGregor McKinney Memphis *Mercedes Mertens Mission Moran Mt. Calm Mt. Pleasant Munday Murchison Nacogdoches Normangee North Zulch Orange Paducah Palmer Pampa Paradise Paris Paris Pecos Penelope Perrin Piano Port Arthur Post Quanah Rails Rails Reagan Rice Richardson Richland First State Bank Cameron County Bank First State Bank First State Bank First State Bank Liberty State Bank Lockney State Bank Commercial Guaranty State Bk. First State Bank First State Bank Lubbock State Bank Security State Bank & Trust Co. Citizens Guaranty State Bank.... Citizens State Bank Lipscomb Bank & Trust Co Farmers State Bank First State Bank First State Bank First State Bank Citizens State Bank Farmers & Merchants State Bk. First State Bank & Trust Co First State Bank Central State Bank Citizens State Bank Bank of Commerce & Trust Co. First Guaranty State Bank First State Bank Moran State Bank First State Bank Guaranty State Bank First State Bank First State Bank Commercial Guaranty State Bk. First State Bank Farmers Guaranty State Bank.. Guaranty Bank & Trust Co First State Bank First Guaranty State Bank Gray County State Bank Paradise State Bank First State Bank Lamar State Bank & Trust Co... Pecos Valley State Bank Penelope State Bank First State Bank Farmers State Bank Merchants State Bank First State Bank First Guaranty State Bank First State Bank Guaranty State Bank & Trust Co. First State Bank First State Bank Citizens State Bank First State Bank Capital 35,000 25,000 60,000 25,000 50,000 35,000 50,000 50,000 30,000 25,000 100,000 100,000 75,000 25,000 75,000 25,000 25,000 38,000 30,000 25,000 25,000 130,000 50,000 75,000 75,000 50,000 25,000 50,000 40,000 40,000 60,000 35,000 25,000 100,000 25,000 25,000 100,000 50,000 25,000 25,000 25,000 150,000 150,000 110,000 25,000 25,000 60,000 100,000 25,000 100,000 25,000 60,000 25,000 50,000 35,000 25,000 Surplus 10,000 3,000 30,000 1,000 11,000 10,000 3,000 30,000 25,000 50,000 6,000 5,000 7,000 55,000 25,000 8,000 13,000 20,000 25,000 25,000 6,000 7,000 50,000 5,000 7,000 10,000 2,000 10,000 30,000 5,000 3,000 50,000 25,000 2,000 50,000 18,000 13,000 100,000 53,000 40,000 12,000 40,000 50,000 3,000 50,000 15,000 7,000 20,000 4,000 20,000 Total Resources 422,000 207,000 541,000 69,000 421,000 331,000 219,000 296,000 350,000 250,000 870,000 475,000 470,000 146,000 308,000 255,000 107,000 348,000 133,000 158,000 156,000 664,000 284,000 555,000 538,000 151,000 130,000 328,000 194,000 187,000 498,000 234,000 96,000 1,254,000 210,000 141,000 460,000 468,000 241,000 211,000 94,000 1,462,000 1,671,000 540,000 136,000 128,000 341,000 1,317,000 176,000 839,000 154,000 302,000 140,000 203,000 136,000 255,000 62 Federal Reserve Bank of Dallas SCHEDULE 23—Continued Capital Roaring Springs..First State Bank 25,000 25,000 Robstown .First State Bank 50,000 Robstown Guaranty State Bank 60,000 Rockwall Guaranty State Bank 50,000 Royse City First State Bank Rusk F. &. M. State Bk. & Tr. Co 100,000 Sabinal First State Bank 80,000 San Antonio Central Trust Co 200,000 San Augustine Commercial Guaranty State Bk... 50,000 Santa Anna First State Bank 35,000 Savoy First State Bank 25,000 40,000 Seminole First State Bank 35,000 Seymour First Guaranty State Bank 50,000 Shamrock F. &. M. State Bank 25,000 Shiro Farmers State Bank 25,000 Silverton Briscoe County State Bank 50,000 Sinton Bank of Commerce 40,000 Slaton First State Bank 50,000 Snyder First State Bank & Trust Co 25,000 Spearman Guaranty State Bank Stamford .First State Bank 100,000 Streetman First State Bank 25,000 Sweetwater Texas Bank & Trust Co 100,000 50,000 Teague First State Bank 200,000 Terrell First State Bank 30,000 Tioga First Guaranty State Bank 25,000 *Troup Guaranty State Bank 25,000 Trenton Guaranty State Bank 100,000 Tyler Peoples Guaranty State Bank 30,000 Valley Mills Citizens State Bank 25,000 Valleyview First Guaranty State Bank 300,000 Waco First State Bank & Trust Co Waxahachie Guaranty State Bk. & Trust Co. 200,000 125,000 Weatherford First State Bank 50,000 Wellington Wellington State Bank 50,000 West First State Bank 50,000 Wharton Security Bank & Trust Co 50,000 Wharton .Wharton Bank & Trust Co 25,000 White Deer .First State Bank 100,000 Wills Point First State Bank Winnsboro Merchants & Planters State Bk. 30,000 50,000 Wolfe City First State Bank 30,000 Woodville Woodville State Bank 50,000 Wortham First State Bank 75,000 Wylie First State Bank 100,000 Yoakum Yoakum State Bank Capital Surplus 10,000 20,000 9,000 30,000 6,000 50,000 25,000 10,000 3,000 25,000 5,000 35,000 20,000 75,000 5,000 165,000 8,000 20,000 10,000 32,000 4,000 9,000 115,000 23,000 24,000 50,000 15,000 150,000 10,000 44,000 30,000 25,000 3,000 15,000 25,000 100,000 Total Resources 171,000 189,000 346,000 316,000 254,000 653,000 420,000 4,105,000 400,000 362,000 184,000 151,000 141,000 355,000 110,000 57,000 377,000 262,000 322,000 83,000 615,000 168,000 762,000 525,000 1,253,000 159,000 309,000 114,000 1,232,000 108,000 128,000 2,213,000 1,202,000 856,000 485,000 292,000 368,000 765,000 180,000 486,000 340,000 273,000 128,000 977,000 493,000 1,240,000 $15,516,000 $6,424,000 $126,338,000 15,516,000 6,424,000 Total Capital and Surplus •Data on these banks is from latest statements available. Surplus 21,000 15,000 10,000 20,000 25,000 3,000 1,000 .$21,940,000 Federal Reserve Bank of Dallas 63 SCHEDULE 24 MEMBER BANKS BY STATES December 31, 1921 Arizona Louisiana New Mexico Oklahoma Texas Totals National 8 National 16 National 37 National 38 National 556 State 2 State 2 State 5 State 4 State 103 Total 10 Total 18 Total 42 Total 42 Total 749 655 206 861 SCHEDULE 25 RECAPITULATION OF CAPITAL STOCK ACCOUNT, 1921 Number of member banks December 31, 1920 (national) Number of member banks December 31, 1920 (state) New national banks organized during 1921 State banks and trust companies admitted during 1921 663 187 16 26 892 National banks liquidating during 1921 State banks and trust companies liquidating during 1921 24 7 31 Total member banks December 31, 1921 Total capital stock December 31, 1920 Stock allotted member banks for quarter ending: March 31, 1921 June 30, 1921 September 30, 1921 December 31, 1921 861 $8,197,100 $ 98,100 206,300 252,000 52,400 Total Stock surrendered for quarter ending: March 31, 1921 June 30, 1921 September 30, 1921 December 31, 1921 Total stock December 31, 1921 Total paid-up capital stock December 31, 1920 Subscriptions paid in quarter ending: March 31, 1921 June 30, 1921 September 30, 1921 December 31, 1921 $8,805,900 $ 25,500 31,800 69,000 273,200 $ 49,050 103,150 126,000 26,200 Total 399,500 $8,406,400 4,098,550 Cash subscriptions refunded for surrender of stock quarter ending: March 31, 1921 $ 12,750 June 30, 1921 15,900 September 30, 1921 34,500 December 31, 1921 136,600 Total paid up capital December 31, 1921 608,800 304,400 $4,402,950 199,750 $4,203,200 SCHEDULE 26 NUMBER AND AGGREGATE AMOUNTS OF FEDERAL RESERVE NOTES RECEIVED, ISSUED TO BANK, AND RETURNED TO THE COMPTROLLER DURING 1921 Aggregate NUMBER OF NOTES Amount FEDERAL RESERVE NOTES $20 $50 $10 $5 $100 $500 $1,000 $5,000 $10,000 Dollars 392,000 304,000 18,540,000 1. Received from Comptroller 1,708,000 2. Received from F. R. Bank and from U. S. Treasurer (fit notes) 296,000 463,000 266,000 12,680 5,900 318 404 13,217,000 3. Received by Comptroller from Treasurer for destruction and credit of F. R. Agent's account 2,878,957 1,831,633 1,066,998 38,782 15,896 148 107 57,760,775 4. Total 4,882,957 2,686,633 1,636,998 51,462 21,796 466 611| 89,517,775 5. Issued to F. R. Bank 1,826,000 483,000 552,000 7,200 2,100 56 164 25,762,000 6. Returned to Comptroller of Currency for destruction, including notes returned by U. S. Treasurer for credit of F. R. Agent's account.... 2,878,957 1,831,633 1,066,998 38,782 15,896 148 107 57,760,775 4,704,957 2,314,633 1,618,998 45,982 17,996 204 271| 83,522,775 1 7. On hand at end of month.... 8. Total 1 1 1 SCHEDULE 27 NUMBER AND AGGREGATE AMOUNTS OF FEDERAL RESERVE NOTES RECEIVED, ISSUED TO BANK, AND RETURNED TO THE COMPTROLLER SINCE ORGANIZATION, AND ON HAND AT CLOSE OF BUSINESS, DECEMBER 31, 1921 Aggregate NUMBER OF NOTES Amount FEDERAL RESERVE NOTES $5 $10 $20 | $50 $100 | $500 | $1,000 | $5,000 ^10,000 Dollars 1. Received from Comptroller 10,636,000| 7,288,000| 3,632,000 144,000j 68,000 1,600 2,000| 215,500,000 2. Received from F. R. Bank and from U. S. Treasurer (fit notes) 3. Received by Comptroller from Treasurer for destruction and credit of F. R. Agent's account 1,532,250 3,020,850 1,308,450 70,980 62,300 358 1,139 75,135,750 O5 3 8,235,182 5,495,148 2,595,887 80,066 27,682 292 155,203,630 4. Total 20,403,432| 15,803,998| 7,536,3371 295,046| 157,982 2,148| 3,431| 445,839,380 5. Issued to F .R. Bank 11,567,000 9,303,090 190 4,748,430 196,113 118,000 916 1,979 269,877,150 I 6. Returned to Comptroller of Currency for destruction, including notes returned by U. S. Treasurer for credit of F. R. Agent's account 8,272,432 5,529,908 2,600,907 80,053 27,682 190 292 155,837,230 7. On hand at end of month.... 564,000 971,000 187,000 18,880 12,300 1,042 1,160 20,125,000 1 8. Total O5 20,403,432 15,803,998| 7,536,337 295,046| 157,932| 2,148| 3,431 1 445,839,380 O5 SCHEDULE 28 INTERDISTRICT MOVEMENT OF FEDERAL RESERVE NOTES DURING YEAR 1921 100's 50's 20's Refd Rec'd Refd Rec'd Refd Rec'd Refd from from from to to to to 64,400 74,500 $ 37,000 $ 35,300 $ 225,500 $ 257,500 $ 231,000 $ 636,400 375,450 458,800 536,700 1,486,000 1,919,200 1,135,400 86,300 95,750 346,000 47,500 249,500 45,500 234,000 94,400 256,150 601,800 113,000 569,500 90,500 226,750 67,500 107,250 314,000 43,250 386,240 39,500 249,010 209,600 140,900 249,200 215,300 1,636,750 2,364,960 1,437,500 247.300 364,250 240,300 208,000 881,250 1,257,100 1,755,900 124,500 118,600 306,600 267,100 1,194,500 2,100,720 1,421,000 30,600 18,800 198,600 29,500 195,300 30,300 123,000 205,800 179,600 314,500 311,300 1,582,250 2,434,000 2,468,500 494,900 317,100 300,400 336,100 1,042,250 1,845,100 2,681,500 2,140,050| 2,048,350| 2,115,600| 2,261,700 8,881,260| 13,579,120| 12,591,200 1921 1920 1000's 10,000's Total Amounts Total Amounts Rec'd Ret'd Rec'd Refd Refd Refd Rec'd Rec'd from from to to from from to to $ 1,056,900 $ 688,150 $ 1,466,560 $ 589,300 $ 3,000 $ 8,000 6,247,950 5,501,500 7,266,650 4,423,550 159,000 63,000 $10,000 988,750 2,000 891,300 1,626,800 738,950 5,000 1,638,750 1,289,100 1,695,750 1,392,950 5,000 9,000 1,401,490 20,000 957,010 3,061,000 768,650 11,000 5,963,740 5,085,250 5,290,250 4,670,500 67,000 21,000 3,847,000 2,901,150 3,693,200 35,000 4,431,750 11,000 5,080,575 3,808,850 8,272,822 4,558,650 19,000 33,000 404,500 399,100 7,000 445,850 590,900 5,000 5,652,300 5,674,400 6,974,350 6,007,200 49,000 16,000 3,967,415 5,289,750 4,299,205 4,610,350 43,000 33,000 210,000 414,000| 10,000 35,298,120| 33,324,360| 44,204,887| 32,782,750 10's 5's Refd Rec'd Rec'd to from from $ 75,700 $ 81,750 $ 647,900 $ Boston 671,250 1,590,750 2,567,000 New York 525,500 Philadelphia .... 112,250 125,750 713,000 134,750 100,000 Cleveland 823,000 97,500 197,750 Richmond 1,674,550 1,427,730 1,577,000 Atlanta 794,500 382,250 378,500 Chicago 1,300,920 1,060,235 925,750 St. Louis 64,350 94,500 41,000 Minneapolis 1,364,000 1,191,500 1,159,250 Kansas City 804,900 San Francisco.. 633,415 679,500 Total 5,827,580| 6,880,350 ll,309,770| F. R. Bank of 500's F. R. Bank of Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City San Francisco.. Total Ret'd Rec'd from to $ 500 $ 3,000 32,000 108,500 1,500 3,500 5,000 9,000 1,500 1,000 16,500 11,000 31,000 8,000 5,500 12,000 3,500 3,500 30,000 21,000 31,500 14,500 116,000| 237,500 Federal Reserve Bank of Dallas 67 SCHEDULE 29 Federal Reserve Agent's statement of Federal Reserve notes on hand, outstanding, received from Comptroller of the Currency, canceled, and coverage of total issue, as of December 31, 1921. RESOURCES Federal Reserve notes on hand $ 20,125,000.00 Federal Reserve notes outstanding 39,537,770.00 Collateral security held against outstanding Federal Reserve notes: Gold and gold certificates 6,701,000.00 Credit balance in gold redemption fund 2,158,285.00 Credit balance with Federal Reserve Board 2,234,000.00 Eligible paper 50,739,414.25 $121,495,469.25 LIABILITIES Federal Reserve notes received from Comptroller of Currency—gross amount $215,500,000.00 Less forwarded to the Comptroller for destruction 155,837,230.00 Received from Comptroller—net 59,662,770.00 Gold and gold certificates 11,093,285.00 Eligible paper 50,739,414.25 $121,495,469.25 SCHEDULE 30 FEDERAL RESERVE BANK NOTES OUTSTANDING DECEMBER 31, 1920, ISSUED AND REDEEMED DURING 1921 AND OUTSTANDING DECEMBER 31, 1921 Ones Twos Fives Tens Twenties Totals New notes Outstanding ^ g ^ J , 1 1 Unfit notes Outstanding December _______ 11T , m redeemed December 31, 1920 notes during 1921 31, 1921 redeemed $5,950,220 $1,540,000 $6,016,000 $1,474,220 689,780 200,000 620,000 269,780 628,030 240,000 449,000 419,030 753,310 353,000 400,310 723,460 337,000 386,460 $8,744,800 $1,980,000 $7,775,000 $2,949,800 68 Federal Reserve Bank of Dallas SCHEDULE 31 COMBINED STATEMENT OF CONDITION OF NATIONAL BANKS ELEVENTH FEDERAL RESERVE DISTRICT (In thousands of dollars) Number of Banks 657 Feb. 21, 1921 Number of banks Number of banks 657 657 652 Apr. 28, 1921 June 30, 1921 Sept. 6, 1921 $497,000 89,843 20,170 189,795 $483,755 88,586 22,211 181,099 $464,557 86,342 23,954 190,298 $852,029 $796,808 $775,651 $765,151 % 72,954 43,433 16,954 528,852 84,465 105,371 $ 73,625 43,469 21,162 495,641 68,234 94,677 $ 73,830 43,626 19,366 480,916 58,638 99,275 $ 73,225 43,390 20,409 468,524 61,113 98,490 $775,651 $765,151 RESOURCES: Loans and Discounts $518,020 U.S. Government Securities 101,297 Other Bonds 17,648 All other resources 215,064 Total Number of banks LIABILITIES: Capital stock Surplus Undivided profits Individual deposits Due to banks All other liabilities Total $852,029 Federal Reserve Bank of Dallas 69 SCHEDULE 32 LIST OF BANKS IN ELEVENTH FEDERAL RESERVE DISTRICT WHICH HAVE BEEN GRANTED PERMISSION TO ACT IN FIDUCIARY CAPACITIES ARIZONA Nogales Tucson Tucson LOUISIANA Shreveport Shreveport NEW MEXICO Albuquerque Albuquerque Carlsbad Roswell Et'oswell Silver City TEXAS Abilene Amarillo Austin Beaumont Bonham Brenham Brownsville Brownwood Cameron Colorado Corsicana Dallas Dallas Dallas Dallas Denison El Paso El Paso El Paso Fort Worth Fort Worth Fort Worth Fort Worth Galveston Granger Greenville Houston Marshall Marshall McKinney Orange Palestine Port Arthur San Angelo San Angelo San Angelo San Antonio -First National Bank Arizona National Bank Consolidated National Bank Commercial National Bank First National Bank First National Bank State National Bank First National Bank Citizens National Bank First National Bank Silver City National Bank " \ ' • • $ •*•••••;•••"' "•' Citizens National Bank First National Bank -American National Bank First National Bank First National Bank First National Bank Merchants National Bank Citizens National Bank Citizens National Bank City National Bank Corsicana National Bank American Exchange National Bank City National Bank Dallas National Bank National Bank of Commerce .State National Bank City National Bank First National Bank State National Bank Farmers & Mechanics National Bank First National Bank Fort Worth National Bank Stockyards National Bank First National Bank First National Bank Greenville National Exchange Bank ....National Bank of Commerce First National Bank Marshall National Bank First National Bank First National Bank Royall National Bank First National Bank Central National Bank San Angelo National Bank First National Bank Lockwood National Bank 70 Federal Reserve Bank of Dallas San Antonio Sealy Sherman Sherman Stanton Texarkana Troup Tyler Victoria Waco Waxahachie Wichita Falls Wichita Falls National Bank of Commerce Sealy National Bank Commercial National Bank M. & P National Bank First National Bank Texarkana National Bank First National Bank Citizens National Bank Victoria National Bank First National Bank Citizens National Bank City National Bank First National Bank SCHEDULE 33 BANKS AUTHORIZED TO ACCEPT UP TO 100 PER CENT OF THEIR CAPITAL AND SURPLUS ARIZONA Nogales First National Bank TEXAS Austin Brownwood Dallas Dallas Dallas Dallas El Paso Fort Worth Fort Worth Fort Worth Gainesville Hillsboro Honey Grove Houston Houston Houston Houston Houston Houston Navasota Paris San Angelo Sherman Terrell Terrell Waco Waxahachie American National Bank Brownwood National Bank American Exchange National Bank City National Bank Dallas National Bank Southwest National Bank First National Bank Farmers & Mechanics National Bank Fort Worth National Bank Stockyards National Bank First National Bank Citizens National Bank State National Bank First National Bank Houston National Exchange Bank Lumberman's National Bank National Bank of Commerce South Texas Commercial National Bank Union National Bank First National Bank Lamar State Bank & Trust Company First National Bank Commercial National Bank American National Bank First National Bank First National Bank Waxahachie National Bank Federal Reserve Bank of Dallas SCHEDULE 34 NUMBER OF EMPLOYES (INCLUDING THE EL PASO AND HOUSTON BRANCHES) DECEMBER 31, 1921 DEPARTMENT Auditing Bookkeeping Cash Credit Examination and Statistical Fiscal Agency Loan and Discount Mailing Member Bank Relations Secretaries and Stenographers to Senior and Junior Officers Securities Service Transit El Paso Branch Auditing Houston Branch Auditing Officers TOTAL Male Female Total 21 14 12 17 12 30 30 15 5 1 3 18 8 3 19 7 22 17 30 25 15 49 37 15 6 3 11 4 33 27 26 1 27 2 14 4 117 127 60 4 67 6 22 192 637 84 100 34 3 40 4 22 446 1 SCHEDULE 35 CURRENCY RECEIPTS FROM AND PAYMENTS TO MEMBER AND NON-MEMBER BANKS, BY MONTHS, DURING 1921, WITH TOTALS FOR 1919 AND 1920 [In Thousands of Dollars] MONTH January .... February . March April May June July August September October .... November December Total: 1921. 1920. 1919. Receipts Payments From To To Prom Member Non-member Member Non-member Banks Banks Banks Banks I 980 $ 19,970 430 6,793 569 15,688 418 6,385 1,139 19,034 723 7,491 933 15,975 506 8,128 290 18,726 612 8,919 508 17,150 452 7,399 305 19,728 510 8,330 334 15,642 437 8,302 ' 356 12,222 508 12,755 180 14,359 455 8,866 161 14,978 326 7,086 346 14,122 519 11,965 "1977594 5,896 102,419 6,101 152,697 6,685 120,951 5,790 72,580 3,208 90,145 4,573 Total Receipts 1921 20,400;$ 16,106 19,757| 16,481 19,338 17,602 20,238 16,079 12,730 14,814 15,304 14,641 203,490 1920 1919 11,206 $11,650 6,756 6.S76 10,934 5,343 11,854 5,483 12,125 4,975 10,914 3,579 12,822 5,953 12,395 4,776 11,724 4,933 16,159 6,327 21,621 5,117 20,872 10,716 Total P a y m e n t s 1921 7,773 6,954 8,630 9,061 9,209 7,907 8,635 8,636 13,111 9,046 7,247 12,311 108,520 1920 1919 7,009 $ 2,197 8,883 3,556 10,059 4,713 9,372 4,344 8,618 4,581 9,811 7,183 9,591 6,505 12,567 7,147 17,500 14,096 13,816 14,804 8,294 13,471 11,221 12,214 126,741 159,382 75,728 94,811 C/3 73 Federal Reserve Bank of Dallas SCHEDULE 36 UNITED STATES TREASURY CERTIFICATES OF INDEBTEDNESS SUBSCRIPTIONS ALLOTTED Date Jan. Jan. Feb. Men. Mch. Apr. May June June Aug. Aug. Sept. Sept. Sept. Nov. Nov. Dec. Dec. of Issue 15, 1921 15, 1921 15, 1921 15, 1921 15, 1921 15, 1921 16, 1921 15, 1921 15, 1921 1, 1921 1, 1921 15, 1921 15, 1921 15, 1921 1, 1921 1, 1921 15, 1921 15, 1921 Date of Maturity Apr. 15, 1921 Oct. 15, 1921 July 15, 1921 Sept. 15, 1921 Mch. 15, 1922 Oct. 15, 1921 Feb. 16, 1922 June 15, 1922 June 15, 1924 Mch. 15, 1922 Aug. 1, 1922 Mch. 15, 1922 Sept. 15, 1922 Sept. 15, 1924 Apr. 1, 1922 Sept. 15, 1922 June 15, 1922 Dec. 15, 1922 Series E 1921 F 1921 G 1921 TS2 1921 TM 1922 H 1921 A 1922 TJ 1922 A 1924 TM2 1922 B 1922 TM3 1922 TS 1922 B 1924 C 1922 TS2 1922 TJ2 1922 TD 1922 Rate 5%% 5%% 5%% 5%% 5%% 5%% 5y2% 5%% 5%% 5%% 5%% 5 % 5%% 5%% 4%% 4%% 4%% 4y 2 % Total Number of Allotment Subscribers 100 $ 2,197,000 243 1,424,000 130 2,552,000 174 2,546,000 221 2,396,000 265 2,764,500 244 4,071,500 331 4,708,000 166 4,058,600 35 2,489,000 105 5,289,500 153 5,278,500 259 3,979,000 127 5,449,000 87 1,541,000 159 3,586,500 120 2,605,000 266 4,175,000 $61,110,100 METHOD OF PAYMENT Credit in war loan deposit account Cash Other certificates of indebtedness exchanged Total 3,185 $44,332,550 13,326,050 3,451,500 $61,110,100 REDEMPTIONS United States Treasury certificates of indebtedness $42,395,500 CERTIFICATES OF INDEBTEDNESS PURCHASED FROM BANKS AND RE-SOLD TO INVESTORS $21,082,500 74 Federal Reserve Bank of Dallas SCHEDULE 37 DEPOSITARY BANKS—DULY QUALIFIED AND DESIGNATED Balance on deposit January 1, 1921 Amount of deposits made on account of payments of certificates of indebtedness by credit in war loan Deposit account: January $ 2,230,000.00 February 2,067,000.00 March 2,561,500.00 April 1,414,250.00 May 2,152,500.00 June 6,714,900.00 July None August 6,766,500.00 September 11,282,900.00 October None November ., 3,657,000.00 December 5,486,000.00 Total deposits Grand total $44,332,550.00s $ 1,953,042.00 44,332,550.00 $46,285,592.00" Amount of withdrawals from depositaries for the year: January February March April May June July August September October November December $ 2,905,300.58 1,090,070.02 2,319,671.40 1,755,479.46 3,417,414.98 1,839,340.44 4,458,702.49 3,343,832.61 4,593,110.01 9,877,981.16 2,578,655.76 1,955,259.81 $40,134,818.72s Balance on deposit Dec. 31, 1921 Grand total 40,134,818.72 6,150,773.28 $46,285,592.00* Total number of qualified depositaries at close of business 1921 Number of banks qualifying 1921 Number of banks increasing their designation Number of banks cancelling their designation 723 1 5 18 75 Federal Reserve Bank of Dallas SCHEDULE 38 COLLATERAL PLEDGED TO SECURE U. S. DEPOSITS WITH DESIGNATED DEPOSITARIES IN WAR LOAN DEPOSIT ACCOUNT Collateral held January 1, 1921 Collateral pledged: January $ 3,155,350.00 February 2,533,650.00 March 2,386,113.08 April 2,017,340.00 May 2,313,256.61 June 8,732,917.63 July 1,824,353.83 August 11,815,174.68 September 19,111,561.04 October 1,476,723.49 November 4,934,078.37 December 9,584,387.50 $69,884,906.23s $ 4,557,366.88 69,884,906.23s $74,442,273.11* Collateral withdrawn: January February March April May June July August September October November December $ 2,901,136.38 2,346,037.50 2,310,723.00 2,505,569.98 2,633,183.35 4,454,294.96 5,512,871.06 9,034,791.42 12,737,345.25 9,660,638.14 5,423,810.48 6,524,784.61 $66,045,186.13s 66,045,186.13s Balance of collateral held December 31, 1921....$ 8,397,086.98 $74,442,273.11* SCHEDULE 39 AMOUNT OF SECURITIES PLEDGED AGAINST WAR LOAN DEPOSIT ACCOUNT AT THE END OF EACH MONTH January February March April May June July August September October November December ? 4,813,580.50 5,001,193.00 5,077,083.00 4,588,353.10 4,268,426.36 8,547,049.03 4,858,531.80 7,638,915.06 14,013,130.85 5,829,216.20 5,339,484.09 8,399,086.98 76 Federal Reserve Bank of Dallas SCHEDULE 40 BOND TRANSACTIONS, INCLUDING CONVERSIONS, EXCHANGE, TRANSFERS, RE-SALES AND MISCELLANEOUS Temporary-Permanent Exchange ISSUES First 4% First 4%% First-second 4%% Second 4% Second 4%% Third 4%% Fourth 4%% Pieces Received 65 2,842 142 668 11,064 45,764 344,252 $ Amount Pieces Delivered Amount $ 5,700 64 6,350 583,450 2,692 565,200 19,700 136 19,700 53,550 616 56,000 2,386,450 9,821 2,287,800 4,755,700 41,369 4,721,600 56,127,200 278,143 55,125,600 Total 404,797 Bonds delivered on exchange by consignment agents 19,555 $62,782,250 332,253 $63,931,750 2,771,800 13,751 2,771,800 424,352 5,554,050 346,004 $66,703,550 Denominational Interchange First 3%'s First 4%'s Second 4%'s Third 41/4's Fourth 4%'s Victory 3%'s Victory 4%'s $ 169,100 234,800 1,126,300 2,012,950 2,660,850 534,100 2,016,700 Total No. of pieces $8,754,800 83,654 Transfer Transactions First 3y2's First 4%'s Second 4%'s Third 4%'s Fourth 4%'s Victory 3%'s Victory 4%'s _ Total No. of pieces $ Coupon Exchange Transactions First 3%'s First 4%'s Second 4's Second 4%'s Third 4%'s Fourth 4%'s Victory 3%'s Victory 4%'s ...._ Total No. of pieces First 3%'s First 4%'s Second 4%'s Third 4%'s Fourth 4%'s Victory 3%'s Victory 4%'s Total No. of pieces Conversion Transactions Total No. of pieces 30,200 77,400 775,650 982,800 2,095,850 10,850 518,850 $4,491,600 21,157 Registered Exchange Transactions 23,400 12,000 117,600 210,750 356,150 100 64,100 $ 784,100 2,326 First 4's Second 4's $ $ 668,600 277,450 662,950 845,600 747,550 2,950 527,800 $3,732,900 12,601 Victory Conversion $ 325,250 1,584,450 Victory 3%'s „ Victory 4%'s $ 109,200 9,250 $1,909,700 20,385 Total No. of pieces. .$ 118,450 199 Sale of Bonds First 3%'s First 4%'s Second 4%'s Third 4%'s Fourth 4%'s Victory 3%'s Victory 4%'s Total No. of pieces $ 99,150 251,900 1,375,500 1,536,950 1,728,700 97,350 2,525,500 $7,614,950 32,860 11 Federal Reserve Bank of Dallas RECAPITULATION Temporary permanent exchanges Denominational interchanges Coupon exchanges Registered exchanges Registered transfers Conversions Re-sales Miscellaneous Total Pieces 424,352 83,654 21,157 12,601 2,336 20,584 32,860 59,628 Amount $ 66,703,550 8,754,800 4,491,600 3,732,900 784,100 2,028,150 7,614,950 9,048,415 657,172 $103,158,465 SCHEDULE 41 SHIPMENTS OF SECURITIES MONTH AND YEAR January, 1921 February, 1921 March, 1921 April, 1921 May, 1921 June, 1921 July, 1921 August, 1921 September, 1921 October, 1921 November, 1921 December, 1921 Total Number Shipments 6,108 4,339 4,399 3,660 5,219 4,724 3,530 3,739 3,767 3,889 3,464 4,064 Number Pieces 183,556 177,462 178,270 175,381 190,406 170,987 139,449 117,999 130,090 186,796 148,806 242,507 Amount $ 57,887,069.88 38,109,459.97 34,395,655.86 31,476,562.28 25,694,202.87 27,209,736.66 16,348,271.70 15,000,915.83 23,145,101.56 22,875,285.38 14,391,309.88 23,710,614.26 50,902 2,041,709 $330,244,186.13 SCHEDULE 42 UNITED STATES INTEREST COUPONS AND WARRANTS PAID MONTHS January February March April May June July August September October November December Total Interest Coupons Paid Government Warrants Paid Number Amount Number Amount 153,222 $ 488,354.70 21,692 $ 2,868,412.20 83,570 238,611.57 24,428 3,471,476.73 133,623 834,513.86 28,481 3,628,977.93 135,663 622,411.71 28,247 3,514,637.92 111,741 595,462.60 28,867 3,641,175.72 148,873 857,659.46 27,091 3,250,153.46 65,181 249,458.85 24,593 4,755,996.22 44,398 210,666.17 29,947 3,696,043.18 87,841 498,211.59 28,529 3,251,142.19 134,858 687,250.15 29,461 3,713,548.47 97,937 424,499.52 31,036 6,025,151.36 160,797 769,192.84 30,472 6,412,311.28 1,357,704 $6,476,293.02 332,844 $48,229,026.66 GO SCHEDULE 43 WAR SAVINGS SECURITIES-SALES AND REDEMPTIONS MONTHS WAR SAVINGS STAMPS Sales January .... February .. March April May June July August September October ... November December . Total Redemption THRIFT STAMPS Sales Redemption TREASURY TREASURY SAVINGS SAVINGS CERTIFICATES STAMPS ReRedempdempSales Sales tion tion 5 556.25 $215.00 None ! 27,315.60|$27 729.60 $ 8,952.76j$12,084.00 678.40 7.908.95J 6,434.54 631.76 130.00 150.25 21.00 None 44.00 100.00 None 19,085.40| None 269.10 101.07 107.50 ,681.60 43.25 None None 16,081.25 30.75 190.90 390.08 None None None None 14,601.60 303.68 None 227.50 None 26.50 None None 14,949.45 7.25 37.53 None None 2.75 281.00 None None 14,776.30 87.78 844.36 None 5.50 262.00 None None 17,011.40 243.02 None 105.00 13.50 118.00 None 10.00) 9,324.00] 50.40 109.20 None 36.00 None None] 13,514.101 .75 1,843.98 29.47 84.80 None None None| 16,521.30| 2.25| 1,831.48 None| None 37.00 None None | 111,239.35| 1.50| None 80.37| |$20,245.17|$14,270.31|$l,111.25|$l,554.25 $336.00|$10.00|$282,328.70|$34,279.40| WAR SAVINGS CERTIFICATES Sales Hi Redemption 130 304,631.84 176,887.10 163,451.90 163,081.98 110,440.45 115,890.86 55 89,150.91 77,697.45 84,622.75 86,408.79 94,314.07 91,940.77 |$1,558.518.87 BANK CLEARINGS AT AUSTIN, BEAUMONT, DALLAS, EL PASO, FORT WORTH, GALVESTON, HOUSTON, SAN ANTONIO, SHREVEPORT, WACO, AND WICHITA FALLS DURING 1920 AND 1921 Millions January February fAorch April of Dollars 600 May June July August Sepixmbtr October Nowmberpecember Millions of Dollars \ 600 \ \ \ 500 / .S < \ 500 / 2SLS \ 400 ^ 400 300 300 200 200 too 10O o o CO NUMBER AND VALUATION OF BUILDING PERMITS AT AUSTIN, BEAUMONT, DALLAS, EL PASO, FORT WORTH, GALVESTON, HOUSTON, SAN ANTONIO AND SHREVEPORT IN 1920 AND 1921 Number January February March April May June August September October NovemberDecember Number 19? 1 ^ ^- 2500 2000 July - — •>* • 2'5O0 ..- 2000 1 5OO 1500 1000 1000 500 soo 0 0 Millions Of Hollers Dollars 5 4 3 2 \ / ^ X I9?l \ s / 4 — ^ X •4920...- . . —- 3 2 1 1 p Q So in to LIVESTOCK RECEIPTS AT FORT WORTH, 1920 AND 1921 Thousands Of J F M J M s o J N D j M J F M s J Htad 1 20 K \\ \ 1 10 100 90 i SO 10 / J ec 50 \ ^ / 40 V j\ 1 30 20 10 /1 f D J I \ \ \ Head 1 20 \ 1 00 \ 90 \ h \ A \ i i \ \ \ A \ V \ V ' 2n A j Y / i \\ y / " 80 j\ —^5 \ ThouGandi o/ 11 0 Sheepj Q N A v — J 0 :v A j i \ \ A i/ \ v 1 Utl/ 10 V / v *>* 60 \ \ \> \\ A i V o 50 40 30 20 10 19 ?i o GO 00 to PRODUCTION OF CRUDE OIL IN ELEVENTH FEDERAL RESERVE DISTRICT IN 1920 and 1921 Miihoms January February March Of Barrels I 3 N 1 1 '0 May June July August StpUTnber October NovemberDe comberMillions Of 1 3 / \J V \ Aprtl *"** ^ " ^ • -• h D/strn:t. prndui tinn —--- "^^ •*•- 10 / 9 8 N Tey as p/'oe^ /ct/on 1 1 /3-i /9?l ^ " 12 / " ^ "• 9 8 ^y 7 7 6 5 5 4 4 3 Z 1 Q 3 L2 ii *• North I ouisia-m ^ produc^ t/on — — —-" . * 2 I ft 3 COMMERCIAL FAILURES IN ELEVENTH FEDERAL RESERVE DISTRICT IN 1920 AND 1921 Thousands J F M A M J A J s 0 N D J p M A M A s 0 0 N Mumber Failures Dollars IOOO 100 6000 600 5OOO 500 / 4000 2000 1 OOO 900 300 100 600 500 4OO 3OO zoo i nn A 1 I •*>\1 A A1 \ 3000 / f\ A V f I\ /] He 1 \ \ / / I If if 1 J V (.9 ?a \ vV V > i ZOO ft \ / \ 3OO / A / Ai nhititml / > Ado \ / ft > 100 30 80 10 N jmtrf i I to 60 50 s A-O 30 20 ?\ 10 GO CO 84 Federal Reserve Bank of Dallas POSTOFFICE RECEIPTS AT ELEVEN PRINCIPAL CITIES IN ELEVENTH FEDERAL RESERVE DISTRICT DURING 1920 AND 1921 Thousands Jan Dollar Feb May Apr May June July AUQ Sept Oct Nof Dec / / / 800 / / / 1 700 600 500 400 300 200 100 K 1 1 / 1 • I9ZQ N / / 85 Federal Reserve Bank of Dallas NET SALES OF TWENTY TEXAS DEPARTMENT STORES DURING 1920 AND 1921 Mnr Million* Jon Apr r^ Clu JlfTIF lulu Ann Sent Oct. Nay npc oSfars 9 7 e t 4 / s 5 A ' s ^^ \ \ ^ ^ \ / \ ^ * to/ / 3 2 1 w / * * 7 86 Federal Reserve Bank of Dallas INDEX Introduction Financial results of operation Discount operations Trade acceptances Bankers' acceptances Reserve position Clearing operations Movement of membership Federal reserve notes Federal reserve bank notes Relations with member banks—national and state Fiduciary powers to national banks Member Bank Relations Department State bank memberships Bank examinations Banking quarters Internal organization and personnel Fiscal Agency operations Operations of the El Paso Branch Operations of the Houston Branch Review of business conditions in 1921 Page 5 7 8-10 10-11 11 12 12-15 15-16 16-17 17-19 19 19-20 20-21 21 21-22 23 23-25 26-28 28-32 32-34 34-37 EXHIBIT A. Movement of principal assets and liability items during 1921 40-41 CHARTS Federal reserve notes outstanding in 1919, 1920 and 1921 Movement of earning assets during 1920 and 1921 Deposits, F. R. note circulation, cash reserves, and reserve ratios 1920-1921 Operations of check clearing and collection department during 1919, 1920 and 1921 Bank clearings at Austin, Beaumont, Dallas, El Paso, Fort Worth, Galveston, Houston, San Antonio, Shreveport, Waco and Wichita Falls during 1920 and 1921 Number and valuation of building permits at Austin, Beaumont, Dallas, El Paso, Fort Worth, Galveston, Houston, San Antonio and Shreveport in 1920 and 1921 Livestock receipts at Fort Worth, 1920 and 1921 Production of crude oil in Eleventh Federal Reserve District in 1920 and 1921 : Commercial failures in Eleventh Federal Reserve District in 1920 and 1921 Postoffice receipts at eleven principal cities in Eleventh Federal Reserve District during 1920 and 1921 Net sales of twenty Texas department stores during 1920 and 1921 18 39 42 55 79 80 81 82 83 84 85 Federal Reserve Bank of Dallas 87 INDEX—Continued SCHEDULES 1. Comparative statement of condition 2. Comparative statement of earnings and expenses for years 1919, 1920 and 1921 3. Statement of disposition of income calendar year 1921 4. Volume of paper discounted and bought, by months, during 1921, classified according to character of paper, with total for three preceding years 5. Rediscounts 6. Number of banks accommodated through the discount of paper during 1921, distributed by states 7. Rediscounts for 1921 by months and distribution by states 8. Discount rates for 1921 and dates on which effective 9. Classification by maturities of bills discounted and bought in 1921 10. Classification of trade acceptances by maturities 11. Classification of bill lading drafts as to commodity 12. Statement of bankers' acceptances—rates and time 13. Operations in United States bonds and securities for the year 1921, and treasury notes held on December 31, 1921 14. Member banks collateral notes 15. Daily average earning assets, earnings thereon and average rate per annum, year 1921, as compared with year 1920 16. Paper rediscounted with other Federal reserve banks during each month of 1921 _ 17. Operations of Federal reserve clearing system 18. Number and amounts of wire transfers sold by months for the year 1921 19. New national banks, 1921 20. National banks liquidating during 1921 21. New state banks, 1921 22. State banks liquidating during 1921 23. Total state bank membership, Eleventh Federal Reserve District, December 31, 1921 24. Member banks by states, December 31, 1921 25. Recapitulation of capital stock account, 1921 26. Number and aggregate amounts of Federal reserve notes received, issued to bank, and returned to the Comptroller during 1921 27. Number and aggregate amounts of Federal reserve notes received, issued to bank, and returned to the Comptroller since organization, and on hand at close of business, December 31, 1921 28. Interdistrict movement of Federal reserve notes during year 1921 29. Federal Reserve Agent's statement of Federal reserve notes on hand, outstanding, received from Comptroller of the Currency, canceled, and coverage of total issue, as of December 31, 1921 Page 43 44-46 46 47 48 48 48 49 49 49 49 50 50-51 51 52 53 54 56 56 57 58 58 59-63 63 63 64 65 66 67 88 Federal Reserve Bank of Dallas INDEX—Continued Page 30. Federal reserve bank notes outstanding December 31, 1920, issued and redeemed during 1921 and outstanding December 31, 1921 31. Combined statement of condition of national banks, Eleventh Federal Reserve District 32. List of banks in Eleventh Federal Reserve District which have been granted permission to act in fiduciary capacities 33. Banks authorized to accept up to 100 per cent of their capital and surplus 34. Number of employes (including the El Paso and Houston branches) December 31, 1921 35. Currency receipts from and payments to member and nonmember banks, by months, during 1921, with totals for 1919 and 1920 36. United States treasury certificates of indebtedness subscriptions allotted 37. Depositary banks—duly qualified and designated 38. Collateral pledged to secure U. S. deposits with designated depositaries in war loan deposit account 39. Amount of securities pledged against war loan deposit account at the end of each month 40. Bond transactions, including conversions, exchange, transfers, re-sales and miscellaneous 41. Shipments of securities 42. United States interest coupons and warrants paid 43. War savings securities—sales and redemptions 67 68 69-70 70 71 72 73 74 75 75 76-77 77 77 78