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10 FOURTEENTH ANNUAL REPORT of the FEDERAL RESERVE BANK OF KANSAS CITY FOR THE YEAR ENDED DECEMBER 31, 1928 TENTH FEDERAL RESERVE DISTRICT FOURTEENTH ANNUAL REPORT of the FEDERAL RESERVE BANK OF KANSAS CITY FOR THE YEAR ENDED DECEMBER 31, 1928 TENTH FEDERAL RESERVE DISTRICT LETTER OF TRANSMITTAL February 15, 1929 Sir: I have the honor to transmit herewith the fourteenth annual report of the Federal Reserve Bank of Kansas City covering the year 1928. 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 1929 DIRECTORS CLASS A CLASS B E. E. MULLANEY (1929), Hill City, Kans. L. E. PHILLIPS (1929), Bartlesville, Okla. C. C. PARKS (1930), Denver, Colo. THOMAS C. BYRNE (1930), Omaha, Nebr. FRANK W. SPONABLE (1931), Paola, Kans. J. M. BERNARDIN (1931), Kansas City, Mo. CLASS C M. L. MCCLURE (1929), Chairman, Kansas City, Mo. E. M. BRASS, (1930), Grand Island, Nebraska WM. L. PETRIKIN (1931), Deputy Chairman, Denver, Colo. MEMBER FEDERAL ADVISORY COUNCIL P. W. GOEBEL, Kansas City, Kansas OFFICERS M. L. MCCLURE, Chairman Board of Directors W. I. BAILEY, Governor and Federal Reserve Agent C. A. WORTHINGTON, Deputy Governor WM. L. PETRIKIN, Deputy Chairman J. W. HELM, Cashier A. M. MCADAMS, Assistant Federal Reserve JOHN PHILLIPS, JR., Assistant Cashier Agent and Secretary E. P. TYNER, Assistant Cashier S. A. WARDELL, Auditor G. E. BARLEY, Assistant Cashier H. G. LEEDY, Counsel M. W. E. PARK, Assistant Cashier G. H. PIPKIN, Assistant Cashier OMAHA BRANCH DIRECTORS AND OFFICERS W E HARDY (1929), Lincoln, Nebr. T. L. DAVIS (1929), Omaha, Nebr. R O MARNELL (1930), Nebraska City, Nebr. WAYLAND W. MAGEE (1930),Bennington, Nebr. A! H. MARBLE (1931), Cheyenne, Wyo WM. DIESING (1931), Omaha, Nebr. L. H. EARHART (1929), Managing Director G. A. GREGORY, Cashier WM. PHILLIPS, Assistant Cashier O. P. CORDILL, Assistant Cashier DENVER BRANCH DIRECTORS AND OFFICERS R H DAVIS (1929), Denver, Colo. HENRY SWAN (1929), Denver, Colo HAROLD KOUNTZE (1930), Denver, Colo. MERRITT W.'GANO (1930), Denver, Colo. H. W. FARR (1931), Greeley, Colo. MURDO MACKENZIE (1931), Denver, Colo. J. E. OLSON (1929), Managing Director S. A. BROWN, Cashier JOHN A. CRONAN, Assistant Cashier OKLAHOMA CITY BRANCH DIRECTORS AND OFFICERS AUSTIN MILLER (1929), Oklahoma City, Okla. WALTER FERGUSON (1929), Tulsa, Okla. WM MEE (1930), Oklahoma City, Okla. E. J. MURPHY (1930), Clinton, Okla. NED HOLMAN (1931), Guthrie, Okla. W. F. NICHOLS (1931). TULSA, Okla. C. E. DANIEL (1929), Managing Director R. O. WUNDERLICH, Cashier R. L. MATHES, Assistant Cashier FOURTEENTH ANNUAL REPORT FEDERAL RESERVE BANK OF KANSAS CITY AVORABLE agricultural and live stock conditions prevailed throughout the Tenth Federal Reserve District during the past year. Stability in these principal industries was accompanied by satisfactory conditions in other important lines of activity in the District. Production of oil, gas, coal, and other minerals was well maintained, but was not as great as in the previous year. The estimated gross value of mineral and agricultural products for the year, including sales of livestock, and dairy and poultry products, is $3,555,000,000, a figure slightly in excess of the estimate for the very good volume of production in 1927. The composite farm crop production for the District was greater than in 1927, smaller yields of corn, hay, and some other crops being more than offset by the larger yields of wheat, oats, and cotton. Barley, white potatoes, broom corn, and truck crops were produced in greater volume than in the previous year, but there were smaller yields of grain sorghums, sugar beets, and most of the fruits. Due to lower prices for wheat and some other crops, the gross farm crop returns for the year, estimated at $1,446,000,000, was only about one per cent larger than returns for 1927. The following table gives the estimated production of the five leading crops, and comparisons with production of the previous year and the ten year average: F Production in 1928 334,956,000 520,235,000 158,214,000 1,125,000 11,951,000 All wheat, bushels Corn, bushels. Oats, bushels Cotton, bales Tame hay, tons Per cent of 1927 136.5 85.5 116.3 115.3 82.9 Per cent of Ten Year Average 143.4 122.9 100.0 112.9 92.0 Live stock operations for the year, except in hogs, were almost universally profitable. Hog prices were relatively low during most of the year, and though prices were better toward the close of the year, the improvement was insufficient to place the industry in flourishing condition. Prices for sheep, lambs, and wool were stable at generally satisfactory levels, and prices for beef cattle during most of the year were such as to provide good returns to both growers and feeders. The dairy branch of the industry enjoyed good prices and satisfactory production. The six leading markets in the District report large increases in hog and sheep receipts as compared to 1927, and substantially smaller receipts of cattle. The Government's estimate of all cattle on farms and ranges in the United States on January 1, 1929, shows a slight increase over the estimate for January 1, 1928. This is the first interruption of the gradual yearly reduction in the number of all cattle shown by the estimates for each year since January 1, 1918, which was the high point of recent years. Based on the estimates, all cattle in the country at the present time number approximately 20 per cent less than in 1918, a reduction which indicates that any over-production of cattle has been or is being corrected, and which offers 5 FOURTEENTH ANNUAL REPORT a logical explanation of the better cattle prices prevailing for the past two or three years. The following table is compiled from the Government's estimates for January 1 of 1928 and 1929 for the seven states whose areas or parts thereof comprise the Tenth Federal Reserve District: NUMBER All cattle Cows and heifers Sheep and lambs Hogs and pigs Horses and colts Mules and colts. Jan. 1, 1928 12,445,000 3,130,000 10,817,000 14,121,000 3,409,000 1,069,000 Jan. 1, 1929 12,527,000 3,115,000 11,272,000 13,255,000 3,277,000 1,017,000 VALUE Jan. 1, 1928 $567,513,000 197,035,000 105,643,000 190.252,000 156,745,000 65,124,000 Jan. 1. 1929 $683,443,000 232,382,000 120,453,000 174,553,000 160,340.000 67,227,000 Production of minerals was generally lower than in 1927, the most important change being in the output of crude petroleum, which declined about 8.5 percent from the high record of 1927. The 1928 production of 313,574,000 barrels was heavy in comparison with all years prior to 1927, and the decline in production of coal, zinc, lead, and other minerals was not great enough to be of much import. A high level of activity was maintained in the processing of raw materials into food products, which is the most important branch of the manufacturing industry in the District, and reports indicate a continued growth in the number of manufacturing plants and in the volume and variety of manufactured products. Flour mills in the District made nearly 26,000,000 barrels of flour, a greater volume than in any previous year, and the pack of vegetables at canneries was also greater than in any other year. The output of the sugar refineries declined somewhat from 1927, and there was a decline in the number of cattle and calves but substantial increases in the numbers of hogs and sheep processed by the meat packing plants. Building operations and general construction work were on a larger scale than in 1927, as shown by the F. W. Dodge Corporation reports of contracts awarded, and also by the reports of building permits issued in nineteen of the principal cities of the District. Department store trade reports show an increase in the dollar total of sales as compared with the previous year, and larger sales for the month of December than in any previous month of record. Wholesale trade reports indicate a stable business, with the usual seasonal variations and with the total dollar value of goods distributed slightly in excess of the total for the previous year. The reports by individual lines showed increases for the year in sales of groceries, furniture, and drugs, and decreases in sales of dry goods and shelf hardware. Business failures in the District during the year were fewer in number than in 1927, with approximately 50 percent reduction in the total amount of liabilities of suspended firms. FEDERAL RESERVE BANK OF KANSAS CITY The banks of the District had good business throughout the year, all reports indicating that deposits averaged higher than ever before and that operations were more profitable than for several years. There has been little or no indication that loans by the banks or their customers, in the securities markets of the country, have been made at the expense of the credit requirements of local industry. The long continued high rates for call and time loans secured by stocks and bonds have, of course, influenced rates paid by noncustomer borrowers and by borrowers who finance themselves by selling their paper in the open market, but the banks generally have kept themselves in position to care for all legitimate requirements of customers and have cared for such requirements with only slight increase in interest charges. The number of operating banks in the District declined during the year from 3,593 to 3,448. There were nine suspensions of national banks and seventy-nine of state banks, caused for the most part by inability of the respective banks to take care of losses resulting from loans made several years ago. The difference between the total reduction in the number of banks and the number of bank suspensions is represented by the excess in the number of consolidations and voluntary liquidations over the number of new banks organized. Federal reserve credit used by member banks was considerably greater than in any year since 1924, and, in addition, the two Federal Intermediate Credit Banks within the District secured substantial advances from this bank during the latter part of the year. The principal reason for the use of Federal reserve credit by the Intermediate Credit Banks was that existing high rates on short term investment securities made it difficult for the Intermediate Credit Banks to secure at moderate cost, through the usual sale of debentures, the funds necessary to carry on their operations. The increase in reserve bank loans to member banks accompanied growth in the volume of member bank loans and investments without an equivalent growth in their deposits. This in turn reflected largely a net balance of out-of-district payments owing in part to decline in balances due to correspondent banks. FOURTEENTH 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 ash 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 Gold and gold certificates in vault 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) On the security of or by the discount of commercial or agricultural paper or acceptances: To member banks To Federal Intermediate Credit Banks Acceptances bought in the open market United States Government bonds, notes, and certificates of indebtedness Federal Intermediate Credit Bank debentures Total loans and investments Miscellaneous Resources: Bank premises, less reserves Dec. 31, 1927 Dec. 31, 1928 $ 60,745.990.00 $ 57.515,045.00 2,488,996.14 3.187,490.24 7,299,469.48 6.008,353.95 27,498,488.85 51,953,195.85 5,826,106.00 5,766,058.00 $103,859,050.47 $124,430,143.04 $ 3.060,125.73 $ 2.417,914.24 $ 3.229,532.00 $ 7,450,900.00 6,404,780.66 0 14,555,168.79 9,136,683.68 7.891,207.90 96,016.74 38,341,600.00 10,513,300.00 0 1,500,000.00 $ 55,867,120.56 $ 43.252,069.21 $ $ 4,307,959.76 4,139,771.40 46,470,789.34 38,765,310.20 Due from suspended banks 285,902.85 132,702.03 All other miscellaneous resources 147,626.40 138,877.48 Total miscellaneous resources $ 51,212,278.35 $ 43,176,661.11 Total resources $213,998,575.11 $213,276,787.60 Checks and other items in process of collection FEDERAL RESERVE BANK OF KANSAS CITY COMPARATIVE STATEMENT OF CONDITION Dec. 31, 1928 Dec. 31, 1927 Liabilities 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 Total currency in circulation Deposits: Reserve deposits maintained by member banks as legal reserves against the deposits of their customers $ 67,188,875.00 $ 70,663,130.00 $ 67.188,875.00 $ 70,663,130.00 $ 95,045,794.70 $ 89,990,731.17 2,081,997.34 1,660,612.18 United States Government deposits carried at the reserve bank for current requirements of the Treasury 741,005.12 547,698.25 $ 97,868,797.1b $ 92,199,041.60 $ 35.283,837.46 $ 36.580,224.38 Other deposits Total deposits Miscellaneous Liabilities: Deferred items, composed mostly of uncollected checks on banks in all parts of the country. 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 523,863.24 376,537.63 $ 3 5,660,375.09 Total miscellaneous liabilities $ 37,104,087.62 $ $ 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 4,234,850.00 4,224,200.00 9.045,677.86 9,086,328.38 Total capital and surplus $ 13,280.527.86 $ 13,310.528.38 Total liabilities $213,993,575.11 $213,276,787.60 HOLDINGS OF EARNING ASSETS, EARNINGS THEREFROM, AND ANNUAL RATES OF EARNINGS Year Daily Average Holdings Earnings Average Rates of Earnings (per cent) 1924 1925 1926 1927 1928 1924 1925 1926 1927 1928 1924 1925 1926 1927 1928 Bills Discounted $ 19,252,047 9,052,881 16,075,773 13,064,641 24,034,188 859,534 362,177 643,032 500,769 1,034,216 4.46 4.00 4.00 3.83 4.30 United States Government Securities Other Earning Assets $ 94,273 585,184 182,007 158,580 538,179 507,513 375,715 521,901 $ 24,512,289 30,781,256 33,035,187 31,549,966 21,006,968 947,929 1,117,964 1,213,542 1,106,482 778,027 3.06 3.20 3.55 3.51 4.02 3.87 3.63 3.67 3.51 3.70 3.28 3.55 4.44 Bills Purchased $ 5,183,349 16,819,307 14,306,927 10,713,383 12,994,944 0 69,672 3,093 20,795 8,077 0 2,975 0 4.27 Total $ 49,041,958 57,238,628 63,599,894 55,327,990 58,105,772 1,969,136 2,039,115 2,372,164 1,982,966 2,337,119 4.02 3.56 3.73 3.58 4.02 FOURTEENTH ANNUAL REPORT INCOME AND DISBURSEMENTS 1927 1928 Earnings: From loans and rediscounts From acceptances owned From United States Government obligations owned From penalties for deficient reserves Income from rented space Other earnings $ $ 1,034,216.39 521,900.81 778,026.80 15,231.93 216,470.87 32,121.18 $ Total earnings 500,769.06 375,715.42 1,106,482,07 17,748.46 234,688.90 69,534.06 2,304,937.97 $ 2,597,967.98 $ 1,624,440.65 $ 1,636,173.98 Deductions from Earnings: 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 52,774.13 25,806.50 Depreciation and replacement reserves on buildings, fixed machinery and equipment 168,188.36 168,188.36 Other deductions, net, including furniture and equipment purchased and loss on United States Government securities sold 108,039.61 44,809.27 $ Total deductions from earnings Net income available for dividends, additions to surplus, and payment to the United States Government 1,890,212.41 $ 1.938,208.45 $ 414,725.56 $ 659,759.53 $ 252,753.04 $ 253,254.36 Distribution of Net Income: 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 365,854.65 145,775.27 $ Total net income distributed 40.650.52 16,197.25 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 $ 414,725.56 659,759.53 DISTRIBUTION OF LOANS State Colorado Kansas •Missouri Nebraska •New Mexico "•Oklahoma Wyoming Totals Number of banks served Number of offerings accepted Amount loaned during 1927 Amount loaned during 1928 51 107 24 98 5 92 9 954 990 884 1,417 41 643 64 $ 301,570,401.51 62,136.964.39 788.956,983.44 156,772,675.82 621,829.78 48,695,779.14 582,788.85 $129,651,422.74 23.788,649.59 273,703,434.16 97,865,95069 655.414.70 23,048,943.55 692,666.92 f386 4,993 $1,359,337,422.93 $549,406,482.35 •Within District No. 10 flncludes two Federal Intermediate Credit Banks and three non-member banks. 10 FEDERAL RESERVE BANK OF KANSAS CITY GROSS AND N E T EARNINGS, AND DISTRIBUTION OF NET EARNINGS SINCE ORGANIZATION Period Gross Net Dividends Franchise Tax paid to United States Government Transferred to Surplus 1914 to 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 $ 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 $ 7,085,727 5.540,681 3,056,096 783,036 347,711 (2) 253,182 282,921 756,469 414,725 659.759 $ 969,694 257,672 268,620 275,655 275,313 265.697 258.427 252,764 252,753 253,254 $6,116,033 3,042,781 486,918 (1) 157,432 7,240 (3) 518.879 2,449 50.371 16,197 40,650 $ 2,240,228 2,300,558 664,813 65,158 Totals $41,263,325 $18,673,943 $3,329,849 $9,086,328 $6,257,767 (1) (2) (3) 22,045 453,335 145.775 365,855 Net reduction in surplus account after charging surplus and crediting franchise tax with $208,170.00 paid as an additional franchise tax for 1921. Deficit in earnings before payment of dividends. Deficit in earnings after payment of dividends, charged to surplus account. VOLUME O F OPERATIONS IN PRINCIPAL D E P A R T M E N T S Year Number of Pieces Notes discounted or rediscounted for member banks 1924 1925 1926 1927 1928 55,574 28,883 36,304 27,718 23,714 Currency received and counted 1924 1925 1926 1927 1928 48,617,887 51,3 54,987 53,737,809 58,901,356 59,698,468 243,904,537 256.838,800 263,949,050 279.059,600 279,128,200 Coin received and counted 1924 1925 1926 1927 1928 63,203,382 63,559,440 65,855,310 66,608,883 72,308,170 10,800,194 12.142,654 12,194,620 12,500,191 13,165,119 Checks handled 1924 1925 1926 1927 1928 61.975,039 68,301,676 70,500,000 70,387,000 69,570,000 9,786,001,503 11.061,945,198 11,787,519,000 11,559,626.000 11,523,602,000 Collection items handled 1924 1925 1926 1927 1928 1924 1925 1926 1927 1928 1924 1925 1926 1927 1928 1924 1925 1926 1927 1928 280,757 264,717 299,489 323,042 323,695 2,141,022 1,961,171 1,807,616 1,731,652 1,481,296 894,427 384,886 200,581 321,855 440,412 119,412 122,373 123.864 129,900 139,879 230.103,325 234.036,442 260,933,118 276.116,113 300,200,071 United States Government coupons paid United States securities—Issues, redemptions, and exchanges by Fiscal Agency Dept. Transfers of funds 11 Amount $ 227,743,605 298.936,616 682,689,646 549,406,482 1,359,337.423 18,060,109 18,657,628 19.070,292 16,922,224 18,115,606 161,888.845 146.542,867 112.179,066 261,427,447 289,561.083 4,358,822.341 5,075,400,624 5,533,674,491 6.164,713.830 6,501.914,845 FOURTEENTH ANNUAL REPORT GENERAL COMMENTS ON OPERATIONS Changes in the principal items of resources and liabilities, as shown by the statements at the end of the years 1927 and 1928, do not signify any important economic changes in the District. Reserve deposits of member banks, total deposits, and all items of earning assets except United States Government securities, averaged higher for the past year than in 1927, and there were lower averages for the year in the items of cash reserves, Federal reserve notes in circulation, and United States Government securities owned. The substanital reduction in average holdings of Government securities, and the practical elimination of holdings of purchased bills toward the close of the year, reflect investment policy and adjustments of reserve position. The number of banks having occasion to use Federal reserve credit during the year was practically unchanged from the previous year, being 386 in 1928 as compared with 381 in 1927, and there was very little change between the two years in the distribution of borrowing banks by states, or in the relative gross amounts borrowed by banks in the several states. The 386 banks which borrowed or rediscounted during 1928 included 2 Federal Intermediate Credit Banks, 3 non-member banks which borrowed on Adjusted Service Certificates, and 381 member banks,—approximately 40 per cent of the member banks of the District. The increase in average daily holdings of earning assets, from $55,327,990 in 1927 to $58,105,772 in 1928, and the increase from 3.58 per cent to 4.02 per cent in the average earnings on loans and investments, resulted in substantially larger total earnings for 1928 as compared with 1927. Deductions from earnings, consisting of current operating expenses, depreciation and replacement reserves, furniture and equipment purchased, and the excess of charges over credits to current profit and loss, totaled about $48,000 more than in 1927. Net earnings were at the rate of 15.6 percent on average paid-in capital, 5 per cent on average capital and surplus, and 0.6 percent on 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 $40,650.52 to the surplus account and payment of $365,854.65 franchise tax to the United States Government. The volume of operations in the head office and the Omaha, Denver, and Oklahoma City branches during the year was about the same, in the aggregate, as was shown for 1927. Comparison for 12 FEDERAL RESERVE BANK OF KANSAS CITY the two years of the volume of those operations subject to measurement by number of pieces handled shows slight decreases in the number of notes discounted or rediscounted, checks handled for collection, and United States Government coupons paid, and increases in the number of pieces of currency and coin received and counted, the number of collection items and transfers of funds handled, and the number of pieces of securities handled as Fiscal Agent of the Government, in the issuance, redemption, and exchange of United States Government securities. The increase in the last named transactions was substantial, and there was also a substantial increase, as compared with 1927, in the volume of work incident to safekeeping of securities for member banks. At the close of the year 699 member banks, approximately 75 per cent of the total membership, were availing themselves of this service, and during the year the safekeeping operations involved the handling of 178,007 separate pieces of securites, and the clipping and disposition of proceeds of 211,279 interest coupons. The discount rate of the bank, for all classes of paper and all maturities, was maintained at 3 ^ percent from January 1 to February 9, inclusive; at 4 per cent from February 10 to June 6, inclusive; and at 4>£ per cent for the balance of the year. MOVEMENT OF MEMBERSHIP The number of member banks in the Tenth Federal Reserve District decreased from 977 on December 31, 1927, to 944 on December 31, 1928. The number of member banks in each state and the changes during the year are shown in the following summary: ADDITIONS Natl. Banks Colorado Kansas •Missouri Nebraska *New Mexico •Oklahoma Wyoming 128 264 48 165 10 330 32 0 0 1 5 0 0 0 ooooooo WITHDRAWALS Membership on Dec. 3 1, 1927 0 0 1 5 0 0 0 Totals 977 6 0 6 State •Within District No. 10 State Banks Total 13 Natl. Banks State Banks Total Membership on Dec. 31, 1928 1 7 2 4 0 15 3 1 1 1 3 0 1 0 2 8 3 7 0 16 3 126 256 46 163 10 314 29 32 7 39 944 FOURTEENTH ANNUAL REPORT The reduction of seven in the number of state member banks was accounted for by one insolvency, and by three voluntary and three involuntary withdrawals from membership, as provided by law. The six national banks added to the membership consisted of three new organizations and three conversions of state banks. Withdrawals of thirty-two national banks were the result of ten insolvencies, twenty-one voluntary liquidations, and one instance of the consolidation of two national banks. PERSONNEL ELECTION AND APPOINTMENT OF DIRECTORS Frank W. Sponable, President of the Miami County National Bank, Paola, Kansas, was reelected Class A Director by member banks of Group 2, for the term expiring December 31, 1931. J. M. Bernardin, owner of the J. M. Bernardin Lumber Company, Kansas City, Missouri, was reelected Class B Director by member banks of Group 1, for the term expiring December 31, 1931. Wm. L. Petrikin, President of the Great Western Sugar Company, Denver, Colorado, was reappointed by the Federal Reserve Board as Class C Director for the term expiring December 31, 1931. The following were reappointed as Directors of the Omaha, Denver, and Oklahoma City Branches, for terms expiring on December 31 of the years indicated: OMAHA BRANCH—L. H. Earhart, Managing Director of Omaha Branch, 1929; A. H. Marble, President of the Stockgrowers National Bank, Cheyenne, Wyoming, 1931; and William Diesing, managing officer of Omaha plant of the Cudahy Packing Company, Omaha, Nebraska, 1931. DENVER BRANCH—J. E. Olson, Managing Director of Denver Branch, 1929; H. W. Farr, sheep dealer and feeder, Greeley, Colorado, 1931; and Murdo MacKenzie, Manager and Director of the Matador Land and Cattle Company, Denver, Colorado, 1931. OKLAHOMA CITY BRANCH—C. E. Daniel, Managing Director of Oklahoma City Branch, 1929; Ned Holman, President of the First National Bank, Guthrie, Oklahoma, 1931; and W. F. Nichols, merchant and stockman, Tulsa, Oklahoma, 1931. 14 F E D E R A L RESERVE BANK OF KANSAS CITY MEMBER OF ADVISORY COUNCIL P. W. Goebel, banker, Kansas City, Kansas, was reappointed by the Board of Directors to serve as member of the Federal Advisory Council from the Tenth Federal Reserve District for the year 1929. OFFICERS AND EMPLOYEES OF THE BANK AND BRANCHES 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 1929. All other officers of the bank and branches were reelected by the Board of Directors for the year 1929. At the close of the year the bank and branches had a total of 21 officers and 582 other employees, as compared with 20 officers and 586 other employees at the close of 1927.