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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.




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