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FIFTEENTH ANNUAL REPORT
of the

FEDERAL RESERVE BANK
OF KANSAS CITY
FOR THE YEAR ENDED DECEMBER 31, 1929

TENTH FEDERAL RESERVE DISTRICT




FIFTEENTH ANNUAL REPORT
of the

FEDERAL RESERVE BANK
OF KANSAS CITY
FOR THE YEAR ENDED DECEMBER 31, 1929

TENTH FEDERAL RESERVE DISTRICT




LETTER OF TRANSMITTAL
February 15, 1930
Sir:
I have the honor to transmit herewith the fifteenth annual report
of the Federal Reserve Bank of Kansas City, covering the year 1929.
Respectfully yours,
M. L. McCLURE,
Chairman and Federal Reserve Agent
Hon. R. A. Young,
Governor, Federal Reserve Board,
Washington, D. C.




DIRECTORS AND OFFICERS
OF THE
FEDERAL RESERVE BANK OF KANSAS CITY
FOR 1930

CLASS A
C. C. PARKS (1930), Denver, Colo.
FRANK W. SPONABLE (1931), Paola, Kans.
E. E. MULLANEY (1932), Hill City, Kans.

DIRECTORS
CLASS B
THOMAS C. BYRNE (1930), Omaha, Nebr.
I. M. BERNARDIN (1931), Kansas City, M
L. E. PHILLIPS (1932), Bartlesville, Okla.

CLASS C
E. M. Brass (1930), Grand Island, Nebraska
WM. L. PETRIKIN (1931), Deputy Chairman, Denver, Colo.
M. L. MCCLURE (1932), Chairman, Kansas City, Mo.
MEMBER FEDERAL ADVISORY COUNCIL
WALTER S. MCLUCAS, Kansas City, Missouri
M. L. MCCLURE, Chairman Board of Directors
and Federal Reserve Agent
WM. L. PETRIKIN, Deputy Chairman
A. M. MCADAMS, Assistant Federal Ri
Reserve
Agent and Secretary
S. A. WARDELL, Auditor
H. G. LEEDY, Counsel
it Cashier

OMAHA BRANCH
DIRECTORS AND OFFICERS
R. O. MARNELL (1930), Nebraska City, Nebr.
WAYLAND W. MAGEE (1930), Bennington, Nebr.
A. H. MARBLE (1931), Cheyenne, Wyo
WM. DIESING (1931), Omaha, Nebr.
W. E. HARDY (1932), Lincoln, Nebr.
T. L. DAVIS (1932), Omaha, Nebr.
L. H. EARHART (1930), Managing Director
G. A. GREGORY, Cashier
WM. PHILLIPS, Assistant Cashier
O. P. CORDILL, Assistant Cashier

DENVER BRANCH
DIRECTORS AND OFFICERS
HAROLD KOUNTZE (1930), Denver, Colo.
MERRITT W. GANO (1930), Denver, Colo.
H. W. FARR (1931), Greeley, Colo.
MURDO MACKENZIE (1931), Denver, Colo.
R. H. DAVIS (1932), Denver, Colo.
HENRY SWAN (1932), Denver, Colo.
J. E. OISON (1930), Managing Director
S. A. BROWN, Cashier
JOHN A. CRONAN, Assistant Cashier

OKLAHOMA CITY BRANCH
DIRECTORS AND OFFICERS
WM. M E E (1930), Oklahoma City, Okla.
J. B. DOOLIN (1930), Alva, Okla.
NED HOLMAN (1931), Guthrie, Okla.
W. F. NICHOLS (1931), TULSA, Okla.
AUSTIN MILLER (1932), Oklahoma City, Okla.
H. H. OGDEN (1932), Muskogee, Okla.
C. E. DANIEL (1930), Managing Director
R. O. WUNDERLI?H, Cashier
R. L. MATHES, Assistant Cashier







FIFTEENTH ANNUAL REPORT
FEDERAL RESERVE BANK OF KANSAS CITY

T

HE Tenth Federal Reserve District enjoyed generally favorable
conditions during the year 1929, and satisfactory levels of activity
were maintained in all the principal branches of industry, although
the value of the year's production of agricultural products, including live
stock, dairy and poultry products sold, and the output of coal, oil, zinc,
lead, and other minerals, estimated at about three and one-half billion
dollars, was slightly under the corresponding estimates for each of the two
preceding years.
The composite yield of farm crops for the District was somewhat lower
than in 1928, the smaller production of two of the major crops, wheat and
corn, having been only partially offset by larger yields of cotton, sugar
beets, and many of the field, truck, and orchard crops. Higher levels of
prices were in effect for most farm products, cotton being the only important exception, and the value of 1929 production, estimated as
$1,427,000,000, was only 1.3 per cent less than the estimated returns for
1928. Estimated production of the five leading crops in the District, and
comparisons with the 1928 and the ten year average figures, are shown in
the following table:
All wheat, bushels
Corn, bushels
Oats, bushels...._
Cotton, bales
Tame hay, tons

•

Production
in 1929
267,493,000
445,415,000
152,447,000
1,211,000
12,348,000

Per cent
of 1928
79.8
85.6
96.0
105.6
99.7

Per cent
of Ten Year
Average
101.1
96.4
92.7
111.8
82.3

Live stock operations during the year were attended with generally
satisfactory results. Cattle prices were favorable, and as a whole that
branch of the live stock industry was prosperous. Available information
indicates that the position of the cattle business, in its various phases,
has greatly improved in the past few years, and that most cattle operations
are being carried on profitably and without undue risk. One unfavorable
factor in the business during the past year was the comparatively narrow
range between prices for cattle to be put in the feed lot and prices for fat
cattle, which made it difficult for feeding operations to be conducted
profitably. The sheep industry was reasonably prosperous, although prices
averaged about one dollar a head less than in 1928, and wool prices were
the subject of considerable complaint. Hog prices for the year averaged
slightly higher than in the preceding year and both raising and feeding
operations were profitable.
Reports of the six leading live stock markets in the District reflected a
small decrease in receipts of cattle and small increases in receipts of hogs
and sheep, as compared with 1928, and the estimated returns for meat
animals sold for slaughter, and dairy and poultry products sold, were about
8 per cent less than for 1928. The Government's annual live stock survey
as of January 1, 1930, indicated a small gain in the number of cattle and
calves on farms and ranges in this District, as well as in the United States.
The report for one year earlier also showed a small increase, but the increases estimated for the past two years are slight in comparison with the



5

FIFTEENTH

ANNUAL

REPORT

estimated decline during the preceding ten years. There was little change
in the number of sheep in the District, but the report showed a marked
decrease in the number of hogs, as compared with the number reported
on January 1, 1929, reflecting the decline in the fall pig crop. The following
estimates of the number and value of live stock in the Tenth Federal
Reserve District are based on the Government's annual estimates as of January 1 of 1929 and 1930:
All cattle
Cows and heifers
Sheep and lambs
Hogs and pigs
Horses and colts
Mules and colts

.-.

NUMBER
Jan. 1, 1929
Jan. 1, 1930
10,294,000
10,523,000
2,410,000
2,474,000
9,829,000
10,363,000
11,011,000
10,576,000
2,701,000
2,610,000
677,000
637,000

VALUE
Jan. 1, 1929
Jan. 1, 1930
$556,231,000
$529,638,000
181,126,000
176,732,000
104,897,000
90,266,000
150,385,000
146,492,000
132,136,000
126,981,000
43,116,000
40,691,000

Productive activity in the mineral industries in 1929 was somewhat higher
than in 1928, increases in production being reported for oil, coal, zinc, lead,
and silver, and prices averaged higher for all products except silver. The
output of 320,000,000 barrels of crude petroleum within the District was
larger than that for the preceding year by about 2 per cent, despite efforts
of leading producers to curtail production and keep it within bounds of
consumptive demand.
Manufacturers of farm implements, machinery, tools, airplanes, clothing,
and other products, reported greater output than that for 1928, and many
new high records of production were established. Flour mills, packing
houses, and other plants engaged in the processing of raw materials into
food products, also reported production in large volume. The year's output of 26,859,871 barrels of flour by the mills of the District was the largest
reported for any year in the history of southwestern milling.
The value of building contracts awarded in the District as a whole, as
reported by the F. W. Dodge Corporation, and the value of building permits
issued in twenty of the leading cities of the District, show a marked decline
for the year in residential construction, but a small gain in the construction
of other types of buildings.
Reports from mercantile establishments during the year indicate a normal volume of trade throughout the District. Sales of reporting department stores were slightly greater than in 1928, and the combined sales of
reporting wholesalers of dry goods, groceries, hardware, and drugs aggregated about the same amount as in the previous year.
Banking operations throughout the District were generally satisfactory,
both as to volume and earnings. Available reports indicate that deposits
in the banks experienced greater fluctuations, and, particularly toward the
end of the year, were on a slightly lower level than in 1928, and there were
some indications during the year that the banks were having difficulty in
caring for all the credit needs of their communities. This tightness of credit
in the District, however, did not reach a critical stage at any time, and toward the end of the year, subsequent to the break in securities values and
the consequent release of large volumes of credits from the securities markets, there was evidence of some easing of the local credit situation.
The year 1929 was the ninth successive year in which a larger number of
banks have gone out of business, through suspension, voluntary liquidation,



6

FEDERAL

RESERVE

BANK

OF KANSAS

CITY

or consolidation, than have commenced business as new organizations or as
reopenings of suspended banks, and the various changes since December
31, 1920, have resulted in a total net reduction of about 1,300 banks. The
banks which have gone out of business have been, for the most part, those in
financial difficulties or those with insufficient business to operate profitably,
and their elimination, although accompanied by most serious results insofar
as bank suspensions are concerned, has placed the general banking business
of the District in better position.
There were 872 national banks, 21 member State banks, and 2,293 nonmember State banks operating in the Tenth Federal Reserve District at
the end of the year, being a net reduction of 39 national banks and 213 nonmember State banks since December 31, 1928. The following table shows
the various changes during the past year which accounted for the net decrease of 253 in the number of operating banks:
Member Banks
(All Natl. Bks.)

Suspension
Voluntary liquidation
Consolidation
Opening of new bank
Reopening of suspended bank
Conversion
National bank to State bank
State bank to national bank

Nonmember
State Banks

— 6

Nature of Change

—187
— 7

*—27
-t- 5

t—
+
+
+

+1
— 17

+ 5

Total
—193
— 7
— 92
+ 17
+ 22

65
12
21
17
C

—253

—39
Net deductions during 1929
—214
* 9 national banks consolidated with State banks, and 18 with other national banks.
fl5 State banks consolidated with national banks, and 50 with other State banks.

The suspension of 193 banks, as shown in the foregoing table, compares
with 88 bank suspensions during 1928, and with 137 in 1923, the largest
number recorded in the District in any previous year. The large number of
suspensions during 1929 is accounted for, in part, by the fact that the figures
include a substantial number of Nebraska State banks which had been taken
over by the Nebraska Guarantee Fund Commission during 1928 or earlier,
and which otherwise would undoubtedly have closed their doors prior to
1929. The Guarantee Fund Commission was abolished by statute, approved
April 30, 1929, and all banks which were being operated by the Commission
at the beginning of the year, and which had not been closed, liquidated, or
reorganized and turned back to private management before April 30, were
promptly placed in receivership.
A comparison of bank suspensions within the Tenth Federal Reserve
District, during the years 1928 and 1929, is given below:

Totals
* Within District No. 10




q

6

State Member
Banks
1928
1929
ooooooo

Colorado
Kansas
*Missouri
Nebraska
•New Mexico
•Oklahoma
Wyoming

National
Banks
1929
1928
0
1
4
1
0
0
3
3
0
0
2
1
0
0

ooooooo

State

0

0

Nonmember
State Banks
1928
1929
3
4
22
11
4
6
47
146
0
0
3
19
0
1
79

187

Total
1928
1929
3
5
26
12
4
6
50
149
0
0
5
20
0
1
88

193

FIFTEENTH

ANNUAL

REPORT

OPERATIONS OF FEDERAL RESERVE BANK OF KANSAS CITY

Complete statistics of each Federal reserve bank are published in the
annual report of the Federal Reserve Board, and detailed figures of the
operations of this bank are omitted from this report, except that on the
following pages are shown the statement of condition at the beginning and
end of the year, the distribution of loans to member banks, and comparative
tables of earning assets, income and disbursements, and volume of operations.
COMPARATIVE STATEMENT OF CONDITION
Resources

Dec. 31, 1928

Dec. 31, 1929

$ 57.51J.O45.OO

$ 70,000,000.00

Cash reserves held by this bank against its deposits and
note circulation:
Gold held by the Federal Reserve Agent as part of the collateral
deposited by the bank when it obtains Federal reserve notes.
This gold is lodged with the Treasurer of the United States.
Gold redemption fund in the hands of the Treasurer of the
United States to be used to redeem such Federal reserve notes
as are presented to the Treasury for redemption

3,187,490.24

3,240,805.69

Gold and gold certificates in vault

6,008,353.95

6,476,159.87

51,953,195.85

52,001,896.42

Gold in the gold settlement fund lodged with the Treasurer of
the United States for the purpose of settling current transactions between Federal reserve districts
Legal tender notes, silver, and silver certificates in the vaults
of the bank (available as reserve only against deposits)
Total cash reserves

Non-reserve cash, consisting largely of national bank
notes and minor coin
Loans and Investments:
Loans:
On the security of obligations of the United States (including
adjusted service certificates)

5,766,058.00

6,172,445.00

$124,430,143.04

$137,891,306.98

$

2,417,914.24

$

$

7,450,900.00

$ 12,996,129.39

14,555,168.79

16,319,828.38

2,867,004.26

On the security of or by the discount of commercial or agricultural paper or acceptances:
To member banks

9,136,683.68

United States Government bonds, notes, and certificates of
indebtedness

3,063,000.00

1,500,000.00

0

$ 43,252,069.21

$ 40,907,273.75

$

$

Federal Intermediate Credit Bank debentures
Total loans and investments

8,195,165.54

10,513,300.00

Acceptances bought in the open market

333,150.44

96,016.74

To Federal Intermediate Credit Banks

Miscellaneous Resources:
Bank premises, less reserves

4,139,771.40

3,971,583.04

38,765,310.20

40,636,234.86

Due from suspended banks

132,702.03

103,693.87

All other miscellaneous resources

138,877.48

84,879.26

Total miscellaneous resources

$ 43,176,661.11

$ 44,796,391.03

Total resources

$213,276,787.60

$226,461,976.02

Checks and other items in process of collection




FEDERAL

RESERVE

BANK

OF

KANSAS

CITY

COMPARATIVE STATEMENT OF CONDITION

Liabilities

Dec. 31, 1928

Dec. 31, 1929

Currency in Circulation:
Federal reserve notes in actual circulation, payable on demand.
These notes are secured in full by gold and discounted and
purchased paper.

$ 70,663,130.00

$ 89,434,280.00

$ 70,663,130.00

$ 89,434,28000

Reserve deposits maintained by member banks as legal reserves
against the deposits of their customers

$ 89,990,731.17

$ 86,407,876.06

United States Government deposits carried at the reserve
bank for current requirements of the Treasury

1,660,612.18

1,554,661.30

Total currency in circulation

Deposits:

Other deposits

547,698.2?

326,446.52

$ 92,199,041.60

Total deposits

$ 88,288,983.88

$ 36,580,224.38

$ 34,803,993.51

Miscellaneous Liabilities:
Deferred items, composed mostly of uncollected checks on banks
in all parts of the conutry. Such items are credited as deposits
after the average time needed to collect them elapses, ranging
from 1 to 7 days.
All other miscellaneous liabilities

523,863.24

486,636.63

$ 37,104,087.62

Total miscellaneous liabilities

$ 35,290.630.14

$

$

Capital and Surplus:
Capital paid in, equal to 3 per cent of the capital and surplus of
member banks
Surplus—that portion of accumulated net earnings which the
bank is legally permitted to retain

4,224,200.00

4,286,050.00

9,086,328.38

9,162,032.00

Total capital and surplus

$ 13,310,528.38

$ 13.448,082.00

Total liabilities

$213,276,787.60

$226,461,976.02

HOLDINGS OF EARNING ASSETS, EARNINGS THEREFROM, AND
ANNUAL RATES OF EARNINGS

Year

Bills
Discounted

Bills
Purchased

United States
Government
Securities

Other
Earning
Assets

Total

Daily
average
holdings

1925
1926
1927
1928
1929

$ 9,052,881
16,075,773
13,064,641
24,034,188
40,823,097

$16,819,307
14,306,927
10,713,383
12,994,944
8,688,491

$30,781,256
33,035,187
31,549,966
21,006,968
4,980,199

$585,184
182,007
0
69,672
963,893

$57,238,628
63,599,894
55,327,990
58,105,772
55,455.680

Earnings

1925
1926
1927
1928
1929

362,177
643,032
500,769
1,034,216
1,985,508

538,179
507,513
375,715
521,901
447,701

1,117,964
1,213,542
1,106,482
778,027
198,424

20,795
8,077
0
2,975
44,060

2,039,115
2,372,164
1.982,966
2,337,119
2,675,692

Average
rates of
earnings
(per cent)

1925
1926
1927
1928
1929

4.00
4.00
3.83
4.30
4.86

3.20
3.55
3.51
4.02
5.15

3.63
3.67
3.51
3.70
3.98

3.55
4.44
0
4.27
4.57

3.56
3.73
3.58
4.02
4.82




FIFTEENTH

ANNUAL

REPORT

INCOME AND DISBURSEMENTS
1928

Earnings:

1929

$

$

1,985,507.94
447,700.60
198,424.18
22,361.27
249,245.24
73,336.56

2,597,967.98

$

2,976,575.79

17,995.96

$

$

71,728.25
5,663.29

$

Total current earnings

1,034,216.39
521,900.81
778,026.80
15,231.93
216,470.87
32,121.18

$

-rom loans and rediscounts
hrom acceptances owned
From United States Government obligations owned
From penalties for deficient reserves
Income from rented space
Other earnings

17,995.96

$

77,391.54

$

1,636,173.98

$

1,715,036.91

Additions t o E a r n i n g s :
-Vofit on United States Government securities sold
All other additions
Total additions
Deductions from E a r n i n g s :
For current bank operation, exclusive of cost of currency. These
figures include most of the expenses incurred as fiscal agent
of the United States
For Federal reserve currency, mainly the cost of printing new
notes to replace worn notes in circulation, and to maintain
supplies unissued and on hand

25,806.50

115,795.85

Depreciation and replacement reserves on buildings, fixed
machinery and equipment

168,188.36

168,188.36

22,888.46

40,911.02

Furniture and equipment purchased

102,494.50

Loss on United States Government securities sold

449.75

652.61

All other deductions
$

Total deductions
Net income available for dividends, additions to surplus, and
payment to the United States Government

1,956,204.41

$

2,040,381.89

$

659,759.53

$

1,013,585.44

$

253,254.36

$

256,549.25

D i s t r i b u t i o n of Net I n c o m e :
In dividends paid to member banks, at the rate of 6 per cent
on paid-in capital
In addition to surplus—The bank is required by law to accumulate out of net earnings, after payment of dividends, a surplus amounting to 100 per cent of the subscribed capital, and
after such surplus has been accumulated, to pay into surplus
each year 10 per cent of the net income remaining after paying dividends

Total net income distributed

75,703.62

40,650.52

In franchise tax—Any net income remaining after paying dividends and making additions to surplus (as above) is paid to
the United States Government as a franchise tax

681,332.57

365,854.65
659,759.53

$

$

1,013,585.44

DISTRIBUTION OF LOANS
Number of
banks
served

State

Number of
offerings
accepted

1928

1929

1928

1929

51
107
24
98
5
92
9

64
109
22
103
7
101
14

954
990
884

1,153
1,521
1,114
2,036

Average amount of
loans outstanding
during 1928

Average amount of
loans outstanding
HnriniT

1979

$ 3,260,751.14
4,090,418.93
7,683,456.47
6,042,185.21
62,335.79
2,794,599.35
100,441.09

$ 3,543,379.13
6,849,376.27
11,458,320.19
11,191.393.23
192,373.49
7,100,378.18
487,876.76

7,169
4,993
°420
Totals
t 386
$24,034,187.98
•Within District No. 10
tincludes two Federal Intermediate Credit Banks and three nonmember banks.
"Includes two Federal Intermediate Credit Banks and one nonmember bank.

$40,823,097.25

Colorado
Kansas
•Missouri
Nebraska
•New Mexico
•Oklahoma
Wyoming




1,417

41
643
64

74

1,151

120

10

FEDERAL

RESERVE

BANK

OF

KANSAS

CITY

GROSS AND N E T EARNINGS, AND DISTRIBUTION OF N E T EARNINGS
SINCE ORGANIZATION
Period
1914 to 1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929

Gross
$ 9,898,760
7,409.987
5,712,858
3,094,660
2,993,919
2,262,910
2,309,985
2,677,340
2,304,938
2,597,968
2,976,576

Net

Dividends
$ 969,694
257,672
268,620
275,655
275,313
265,697
258,427
252,764
252,754
253,254
256,549

$ 7,085,727
5,540,681
3,056,096
783,036
347,711
(2)
253,182
282,921
756,469
414,726
659,760
1,013,586

Transferred
to

Surplus
$6,116,033
3,042,781
486,918
(1)
157,432
7,240
(3)
518,879
2,449
50,370
16,197
40,651
75,704

Franchise Tax
Paid to United
States Government
$

2,240,228
2,300,558
664,813
65,158
22,045
453,335
145,775
365,855
681,333

$19,687,531
$3,586,399
$44,239,901
$9,162,032
$6,939,100
Totals
( l ) Net reduction in surplus account after charging surplus and crediting franchise tax with $208,170.00
paid as an additional franchise tax for 1921.
(2) Deficit in earnings before payment of dividends.
(3) Deficit in earnings after payment of dividends, charged to surplus account.

VOLUME OF OPERATIONS IN PRINCIPAL DEPARTMENTS
Year

Number of
Pieces

Notes discounted or
rediscounted for
member banks

1925
1926
1927
1928
1929

28,883
36,304
27,718
23,714
30,643

$ 298,936,616
682,689,646
549,406.482
1,359,337,423
1,673,244,950

Currency received
and counted

1925
1926
1927
1928
1929

51,354,987
53,737,809
58,901,356
59,698,468
66,691,598

256,838,800
263,949,050
279,059,600
279,128,200
315,847,389

Coin received
and counted

1925
1926
1927
1928
1929

63,559,440
65,855,310
66,608,883
72,308,170
67,038,107

12,142,654
12.194.620
12,500,191
13,165,119
12,966,024

Checks handled

1925
1926
1927
1928
1929

68,301,676
70,500,000
70,387,000
69,570,000
72,155,000

11,061,945,198
11,787,519,000
11,559,626,000
11,523,602,000
12,091,899,000

Collection items
handled

1925
1926
1927
1928
1929

264,717
299,489
323,042
323,695
326,828

234,036,442
260,933,118
276,116,113
300,200,071
298,309,928

United States Government
coupons paid

1925
1926
1927
1928
1929

1,961,171
1,807,616
1,731,652
1,481,296
1,152,151

18,657.628
19,070,292
16,922,224
18,115,606
19,919,320

United States securities—
Issues, redemptions, and
exchanges by Fiscal Agency
Dept.

1925
1926
1927
1928
1929

384,886
200,581
321,855
440,412
139,347

146,542,867
112,179,066
261,427,447
289,561,083
246,938,160

Transfers of funds

1925
1926
1927
1928
1929

122,373
123,864
129,900
139,879
149,439

5,075,400,624
5,533,674,491
6,164,713,830
6,501,914,845
6,974,730,654




11

Amount

FIFTEENTH

ANNUAL

REPORT

COMMENTS ON OPERATIONS

NUMBER of interesting variations are shown in the principal items
of resources and liabilities of the bank during 1929, as compared
with 1928. Total earning assets averaged lower than in 1928, substantial reductions in purchased bills £and United States Government securities, changes which are to a large extent reflections of investment policy
or adjustments of reserve position, having been greater in total than the
large increase in average holdings of bills discounted. Total cash reserves
averaged considerably higher during 1929, accounted for principally by
the larger amount of Federal reserve notes outstanding. Federal reserve
notes of this bank in actual circulation averaged $74,304,000 in 1929, and
$60,500,000 in 1928. This large increase is due, almost entirely, to the
introduction of the new size currency during the year, which resulted in
temporary changes in the volume and kinds of currency in circulation.
There was a slight reduction in the average amount of member bank reserve
deposits during the year, reflecting somewhat lower deposits in the member
banks.

A

Approximately 45 per cent of the member banks of the District borrowed
from this bank at some time during the year, and the average amount of
such borrowings for the year was considerably greater than the corresponding figure for 1928. The increases in the number of borrowing banks
and in the additional average borrowings were from each of the States of
the District, and the distribution of Federal reserve credit to various sections of the District was maintained on about the same basis as during the
previous year.
The average rate of earnings on total earning assets during the year was
4.82 per cent as compared with 4.02 per cent in 1928, and earnings, on a
smaller volume of earning assets, were considerably larger than in the
previous year. Net earnings were at the rate of 23.7 per cent on average
paid-in capital, 7.6 per cent on average capital and surplus, and approximately 1 per cent on average capital, surplus, and deposits, and were sufficiently in excess of the amount required for the usual 6 per cent dividends
to stockholding member banks to permit an addition of $75,703.62 to the
surplus account and payment of $681,332.57 franchise tax to the United
States Government. Franchise tax payments to the Government by this
bank, since its organization, total $6,939,099.60.
Several of the operating departments of the bank, including its branches
in Omaha. Denver, and Oklahoma City, were called upon to handle a larger
volume of transactions than in any previous year. Comparison for the
two years 1929 and 1928, of the volume of those operations subject to
measurement by number of pieces handled, shows increases in the number
of notes discounted or rediscounted, currency received and counted, checks
handled for collection, collection items handled, and transfers of funds
effected, and decreases in the number of coins received and counted, United
States Government coupons paid, and United States bonds, notes, and certificates handled as Fiscal Agent of the Government. There was a substan


12

FEDERAL

RESERVE

BANK

OF

KANSAS

CITY

tial increase in the service extended through the purchase and sale of Government securities for account of member banks, and 705 of the 893 operating member banks at the end of the year were availing themselves of the
service extended by the bank for the safekeeping of securities. The Safekeeping Departments of the four offices handled 126,191 separate pieces of
securities and clipped and credited the proceeds of 212,146 interest coupons.
The exchange of new size for old size currency is well advanced in this
District, and the large amount of work devolving on this bank in connection
with the exchange was cared for in an orderly manner. Some additional
clerical expense was made necessary by the exchange operations, and the
expense of printing the new Federal reserve notes was approximately
$90,000 greater than the corresponding item in 1928.
The discount rate of the bank, for all classes of paper and all maturities,
was maintained at 4^£ per cent from January 1 to May 5, inclusive, at
5 per cent from May 6 to December 19, inclusive, and at 4^" per cent for
the balance of the year.

MOVEMENT OF MEMBERSHIP

The number of active member banks in the Tenth Federal Reserve District decreased from 932 on December 31, 1928, to 893 on December 31, 1929.
The distribution of member banks by States, at the end of 1928 and 1929,
and the various changes during 1929 which effected a net reduction of 39
in the number of member banks, are shown in the following tables. The
number of nonmember banks in each State is shown also, for purposes of
comparison.
MEMBER BANKS—TENTH FEDERAL RESERVE DISTRICT

State

Active
M«:mber Banks
December 31, 1928
Natl.
State
Total

tGains

fLosses

to

to

Natl.

State

Total

0
2
0

120
246
39
157
9
276
25

3
6
4
3
1
1
3

123
252
43
160
10
277
28

872

21

893

Member- Membership
ship

Colorado
Kansas
•Missouri
Nebraska
*New Mexico
*Oklahoma
Wyoming

123
248
42
156
9
307
26

3
6
4
3
1
1
3

126
254
46
159
10
308
29

0
1
1

8

3
4
3
7
0
32
2

Totals

911

21

932

12

51

Active
Member Banks
December 31, 1929

*Within District No. 10.
t Gains and losses to membership were all national banks except as follows: One Wyoming State member
bank withdrew from membership and one Wyoming State bank was admitted to membership.




13

FIFTEENTH

ANNUAL

REPORT

0
T3

o
o

a

u

Additions to Membership:
Organization of national bank
Conversion of nonmember bank to national
Admission of State bank
Resumption of national bank after suspension

Losses to Membership:
Suspension and insolvency
Merger between national banks
Absorption of national bank by nonmember
Conversion of national bank to nonmember
Withdrawal of State bank

M

o •

0

8

1
2

1
1
2

1
2

0

i
i
1

1
2

~a

0

3
3
1

0

i

i
ii
4
16

5
5
1

1

12

6
18
9
17
1

3

Total losses
Net decrease in membership
*Within District No. 10

Number of
Number of
fNumber of
Number of
t Adjusted

4
3

2

0

Total additions

*New Mexico

changes in membership

Nebraska

Procedure effecting
during 1929

•Missouri

CHANGES IN MEMBERSHIP DURING 1929

member banks, end of 1928
member banks, end of 1929
nonmember banks, end of 1928
nanmember banks, end of 1929

4

3

7

0

32

1
1
2

3

2

3

y

0

31

1

39

126
123
160
155

254
252
847
815

46
43
280
263

159
160
820
668

10
10
15
15

308
277
327
319

29
28
58
58

932
893
2,507
2,293

51

PERSONNEL
ELECTION AND APPOINTMENT OF DIRECTORS

E. E. Mullaney, Hill City, Kansas, President of the First National Bank,
Collyer, Kansas, was reelected Class A Director by member banks of Group
3, for the term expiring December 31, 1932.
L. E. Phillips, Bartlesville, Oklahoma, Chairman of the Executive Committee of the Phillips Petroleum Company, was reelected Class B Director
by member banks of Group 3, for the term expiring December 31, 1932.
M. L. McClure, Kansas City, Missouri, was reappointed by the Federal
Reserve Board as Class C Director for the term expiring December 31, 1932.
The following were appointed as Directors of the Omaha, Denver, and
Oklahoma City Branches, to succeed directors whose terms expired December 31, 1929. These appointments were for terms expiring on December
31 of the years indicated.
Omaha Branch—L. H. Earhart, Managing Director of Omaha Branch,
1930; W. E. Hardy, furniture merchant, Lincoln, Nebraska, 1932; and
T. L. Davis, Vice President of the First National Bank, Omaha, Nebraska,
1932.



14

F E D E R A L

R E S E R V E

B A N K

O F

K A N S A S

C I T Y

Denver Branch—-J. E. Olson, Managing Director of Denver Branch,
1930;
R. H. Davis, wholesale druggist, Denver, Colorado, 1932; and
Henry Swan, Vice President of the United States National Bank, Denver,
Colorado, 1932.
Oklahoma City Branch—C. E. Daniel, Managing Director of Oklahoma
City Branch, 1930; Austin Miller, furniture manufacturer, Oklahoma City,
Oklahoma, 1932; and H. H. Ogden, President of the First National Bank
and Trust Company, Muskogee, Oklahoma, 1932.
J. B. Doolin, Alva, Oklahoma, engaged in the farm loan business and a
large land owner, was appointed on June 20, 1929, as a director of the
Oklahoma City Branch, succeeding Senator E. J. Murphy, Clinton, Oklahoma, deceased. The teim for which Mr. Doolin was appointed will expire on December 31, 1930
MEMBER OF ADVISORY COUNCIL

Walter S. McLucas, Chairman of the Board of Directors of the Commerce
Trust Company, Kansas City, Missouri, was appointed by the Board of
Directors to serve as member of the Federal Advisory Council from the
Tenth Federal Reserve District for the year 1930.
OFFICERS AND EMPLOYEES OF THE BANK AND BRANCHES

The following changes in officers at; the head office were made during
the year by action of the Board of Directors: On May 22, 1929, N. R.
Oberwortmann was appointed Assistant Cashier, and on December 19, 1929,
J. W. Helm was appointed Deputy Governor, in addition to his existing
appointment as Cashier.
The Federal Reserve Board reappointed M. L. McClure as Federal
Reserve Agent and Chairman of the Board of Directors, and Wm. L.
Petrikin as Deputy Chairman of the Board of Directors, and re-designated
A. M. McAdams as Assistant Federal Reserve Agent, all for the year 1930.
All other officers of the bank and branches were reappointed by the Board
of Directors for the year 1930.
At the close of the year the bank and branches had a total of 22 officers
and 592 other employees, as compared with 21 officers and 582 other employees at the close of 1928.





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102