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