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NINETEENTH ANNUAL REPORT
of the

FEDERAL RESERVE BANK
OF KANSAS CITY
FOR THE YEAR ENDED DECEMBER 31, 1933

TENTH FEDERAL RESERVE DISTRICT




NINETEENTH ANNUAL REPORT
of the

FEDERAL RESERVE BANK
OF KANSAS CITY
FOR THE YEAR ENDED DECEMBER 31, 1933

TENTH FEDERAL RESERVE DISTRICT




LETTER OF TRANSMITTAL
March 15, 1934
Sir:
I have the honor to transmit herewith the nineteenth annual report
of the Federal Reserve Bank of Kansas City, covering the year 1933.
Respectfully yours,
M. L. McCLURE,
Chairman and Federal Reserve Agent.
Hon. Eugene R. Black,
Governor, Federal Reserve Board,
Washington, D. C.




NINETEENTH ANNUAL REPORT
FEDERAL RESERVE BANK OF KANSAS CITY
Business and agricultural conditions in the Tenth Federal Reserve
District were generally unsatisfactory during the year 1933, but, as compared
with the previous year, there was some improvement in business activity
and in prices for agricultural products and other commodities. General
business activity, which was on a very low level during the first quarter
of the year, improved somewhat toward midsummer, and after a recession
in the early fall, increased during the last quarter of the year to show
substantial improvement over the same period of the previous year. The
improvement in conditions toward the end of the year was influenced by
activities of Governmental agencies in the distribution of funds in various
ways, notably through loans on cotton and corn, payments to farmers
under crop acreage reduction agreements, and through payment of wages
to employees of the Civil Works Administration. There was some improvement in commodity prices during the year, and inventory losses,
where they occurred, were generally smaller than in the three previous
years. There were fewer business insolvencies in the district, with a
smaller total of liabilities involved than in any year since 1923. The
agricultural income benefited from improved prices for some products
and from Government payments for acreage reduction, making the total
somewhat in excess of that for 1932.
The year was one of the poorest crop production years this District
has ever experienced. Insufficient soil moisture, late spring freezes, poor
seed bed preparation, and drouth and excessive temperatures during the
summer months cut heavily into the final yields of spring grains, corn,
hay, fruit, and early harvested potatoes. Grain yields, particularly winter
wheat and oats, were the smallest in recent years, the corn crop was only
slightly larger than the small crop of 1930, hay production was abnormally
low, and fruit crops were below average. The acreage abandonment of
winter wheat was the heaviest of record, and the total harvested acreage
of all crops was 8.4 per cent less than in 1932, 12.2 per cent less than in
1931, 10.1 per cent less than in 1930, and 8.8 per cent less than in 1929.
Total production of all crop units combined declined 27.7 per cent from
that of 1932, and was approximately the same percentage under the average production for the four years 1929-1932. Cotton, sugar beets, late
potatoes, dry beans, and tobacco were the only important crops to make
a favorable showing. The removal of 27.7 per cent of the cotton acreage
from cultivation was more than offset by an unusually high average per
acre yield, and this year's crop was slightly larger than that of 1932 and
above the average of the past five years. The sugar beet and tobacco
crops were among the largest ever produced in the District.
Grain prices throughout the first quarter of the year were at or near
the lowest prices of record. Advances during the second quarter raised
prices approximately 200 per cent, but sharp recessions occurred after
the middle of July. Prices at the close of the year, although at unprofit-




3

NINETEENTH

ANNUAL

REPORT

able levels, were approximately double those at the end of 1932. Stocks
of wheat, corn, and oats on farms in the seven States of the District on
January 1, 1934, were 27, 25, and 36 per cent, respectively, lighter than
one year earlier. The estimates of December 1 farm value of all crops
produced in the District show an aggregate value about 50 per cent greater
than the estimate for December 1, 1932, but approximately 11 per cent,
40 per cent, and 59 per cent, respectively, lower than the corresponding
estimates for the years 1931, 1930, and 1929.
The following table, based on reports and estimates of the United
States Department of Agriculture, shows harvested acreage, production,
and farm value, based on December 1, prices, of the principal crops grown
during the past three years in the seven States whose areas or parts thereof
comprise the Tenth Federal Reserve District.
(In thousands of units of measure and value)
Harvested Acreage
Production
Farm Value
1931
1932
1933
1931
1932
1933
1931
1932
1933
Winter wheat, bu
24,727 18,666 13,792
439,586 213,020 137,471 $169,335 $61,916 $94,149
Spring wheat, bu
418
579
870
4,504
6,739
8,508
2,042
1,966
4,966
All wheat, bu
25,145 19,245 14,662
444,090 219,759 145,979
171,377
63,882
99,115
Corn, bu
28,717 30,200 28,503
539,400 688,283 503,516
184,584 112,361 173,284
Oats, bu
7,630
7,689
7,030
196,365 177,736 111,674
42,634
23,133
32,756
Barley, bu
2,090
2,358
1,833
34,528 40,269 21,421
9,564
6,663
6,428
Grain sorghums, bu
3,202
3,654
3,788
43,134 39,528 37,290
12,957
7,679
14,692
White potatoes, bu
413
416
373
31,108
35,626 33,086
15,072
11,630
22,187
Cotton, bales
3,846
3,626
3,369
1,651 1,463 1,616
43,753
38,724
72,349
Tame hay, tons
8,428
8,383
8,631
10,087 11,235 10,972
73,628
60,096
66,286
Wild hay, tons
4,909
5,311 4,911
3,255
4,349
3,261
18,737
16,759
14,875
Sugar beets, short tons
338
262
352
3,975
3,160 4,301
21,807
14,745
Dry beans, bags.......
572
424
579
2,020
1,160 2,211
3,906
1,792
5,907
Apples, bu
11,306
5,406
7,072
6,801
3,563
5,540
Peaches, bu
3,471 1,735
915
2,329
1,050 1,161
Pears, bu....
1,426
591
602
894
351
477

The acreage of winter wheat seeded in the seven States of this District
in the fall of 1933 for harvest in 1934 is estimated at 22,199,000 acres,
or 3.8 per cent less than the revised estimate of the acreage seeded in 1932,
and 12 per cent less than the revised estimate of the average acreage
seeded in the fall of the years 1929, 1930, and 1931. The Government's
acreage reduction program contemplated a 15 per cent cut from the 1929
to 1931 average area sown, but the estimates indicate that the reduction
thus accomplished in this District was offset in large measure by increased
acreage seeded in the fall of 1933 by farmers who did not join in the program and by farmers whose land was not formerly devoted to wheat
raising.
The following table states the estimated fall sown acreage of winter
wheat for the past five years, in thousands of acres:
Colorado
Kansas.,..
Missouri
Nebraska
New Mexico
Oklahoma
Wyoming

1933
Acres
938
11,953
1,554
3,034
340
4,198
182

1932
Acres
893
12,853
1,413
2,890
400
4,419
202

1931
Acres
1,218
13,097
1,553
3,120
453
4,407
228

1930
Acres
1,433
13,887
1,605
3,504
466
4,615
210

1929
Acres
1,742
13,640
1,424
3,883
432
4,576
189

Seven States
United States.

22,199
41,002

23,070
42,692

24,076
42,569

25,720
45,243

25,886
44,971

Prices for live stock and live stock products continued at very low
levels. End of year prices of beef cattle, butter, eggs, and milk were
lower than at the same time in any recent year. Hog prices averaged




4

FEDERAL

RESERVE

BANK

OF

KANSAS

CITY

somewhat better than in 1932, but were still too low for profitable operations. Sheep prices during most of the year were lower than in 1932,
but the market for lambs was generally better than in the previous year.
Substantial improvement was shown in values of hides and wool, and
of horses and mules.
Changes in live stock prices the past year and declines from the 1929
and war time levels are indicated by the following comparison of top
prices per hundredweight at the Kansas City market:
Dec.
1933
$6.00
4.75
3.00
5.50
3.55
4.75
7.60

Beef steers
Stockers and feeders
Cows_
Calves
Hogs.
Sheep
Lambs

Nov.
1933
$6.75
4.85
3.75
6.00
4.20
4.50
7.25

Dec.
1932
$6.75
5.25
3.25
5.00
3.15
4.90
5.85

Year
1933
$7.15
6.25
4.00
7.00
5.10
4.75
8.10

Year
1932
$9.85
7.50
5.00
8.00
5.00
5 85
10.00

Year
1929
$16.75
14.00
12.50
17.60
12.05
15.00
20.50

Years
1918-19
$25.25
17.50
18.00
18.00
23.40
20.00
21.75

Feeding operations were decidedly less extensive than in other years,
reflecting forced and voluntary adjustments to the present price and
supply situation. Lamb feeding operations were moderately profitable,
but the feeding of cattle was generally unprofitable, as has been true for
the past four years. There were about 8 per cent fewer cattle and 11 per
cent fewer sheep and lambs on feed in this District on January 1, 1934,
than on January 1, 1933.
Estimates based on December breeding intentions indicate a reduction for the District of 8.1 per cent in the 1934 spring pig crop from that
of 1933. A further reduction will no doubt be accomplished under the
Government's corn-hog program, which contemplates a 20 per cent cut
in the corn acreage and a 25 per cent reduction in swine numbers.
The following comparisons of number and value of live stock on farms
and ranges in the seven States whose areas or parts thereof comprise the
Tenth District are based on the annual live stock survey of the United
States Department of Agriculture as of January 1 of each year:
NUMBER OF HEAD

1934
1933
1932
1931
1930
1929.

All Cattle
and Calves
16,070
15,458
14,760
14,340
13,766
12,527

Milk Cows
and Heifers
3,953
3.83S
3,697
3,563
3,440
3,115

1934
1933
1932
1931
1930
1929.

All Cattle
and Calves
243,972
265,766
331,944
492,907
689,575
683,444

Milk Cows
and Heifers
82,697
91,926
118,225
167,766
244,071
232,382

1934
1933
1932
1931
1930
1929

All Cattle
and Calves
$ 15.18
17.19
22.49
34.37
50.09
54.56

Milk Cows
and Heifers
$ 20.92
23.95
31.98
47.09
70.95
74.60

(000 omitted)
Swine,
Including Pigs
12,751
14,690
14,569
12,441
13,329
13,255

Sheep and
Lambs
12,368
12,933
13,588
13,032
13,049
11,272

Horses and
Colts
2,863
2,913
3,004
3,129
3,258
3,277

Mules and
Mule Colts
791
844
873
904
935
1,017

Sheep and
Lambs
48,211
36,510
41,832
69,157
114,606
120,453

Horses and
Colts
149,855
113,700
110,113
129,517
159,582
160,341

Mules and
Mule Colts
56,467
44.094
43,478
50,663
63,187
67,227

Horses and
Colts
$ 52.34
39.03
36.66
41.39
48.98
48.93

Mules and
Mule Colts
$ 71.39
52.24
49 80
56 04
67.58
66.10

TOTAL VALUE

(000 omitted)
Swine,
Including Pigs
48,380
56,577
82,503
137,009
175,235
174,553

AVERAGE VALUE PER HEAD




Swine,
Including Pigs
$ 3.79
3.85
5.66
11.01
13.15
13.17

5

Sheep and
Lambs
$ 3.90
2.82
3.08
5.31
8.78
10.69

NINETEENTH

ANNUAL

REPORT

Wholesale and retail trade in the District was very slack during the
first quarter of the year, improved substantially toward midsummer,
and, after a recession in August and September, maintained a reasonably
good volume to the end of the year. The year's aggregate sales for five
representative wholesale lines were 3.3 per cent larger than in 1932, and
the year's reduction of 1.9 per cent in dollar sales of reporting department
stores was regarded as a favorable experience in view of the fact that
such sales declined 22.3 per cent in 1932 and 13.3 per cent in 1931. By
individual lines, wholesalers' sales of dry goods, groceries, and drugs
were about the same this year as last. Sales of hardware increased 13.9
per cent and sales of furniture increased 18 per cent. With the exception
of drugs, the above named wholesale lines reported inventories as somewhat heavier on December 30, 1933, than on December 31, 1932. Stocks
of merchandise on hand at department stores at the year-end showed a
1.4 per cent increase for the year.
Records of operations of the principal mineral industries of the District
show that production of Portland cement and bituminous coal declined,
whereas the output of crude oil, zinc ore, and lead ore increased. Production of cement equalled 47.8 per cent, coal 61.4 per cent, and petroleum 92.6 per cent of the ten-year average. Zinc ore and lead ore shipments were respectively 45.9 and 41.2 per cent of normal. Prices for
crude oil, zinc ore, and lead ore were substantially better than during the
previous year.
Building activity declined further during 1933, only about 40 per
cent of the usual number of permits being issued in the seventeen reporting cities in this District. The F. W. Dodge Corporation reports of building activity throughout the District show a slight increase in residential
construction during the year but a 6.6 per cent reduction in total value
of all contracts let. Total contract awards were 65 per cent below the average for the past seven years.
The past year was a period of extraordinary developments in the
banking business. Early in the year the distrust of banks which had been
evidenced from time to time in various localities became so widespread
as to be almost universal, and on March 6 the President of the United
States issued an emergency proclamation declaring a general banking holiday. The reopening of the banks on March 13, 14, and 15, accompanied
by assurances of the soundness of institutions permitted to reopen, was
accomplished in an orderly manner and without any recurrence of deposit
withdrawals. Subsequent developments have been generally helpful to
the banking industry, including energetic and constructive efforts to
rehabilitate banks not permitted to reopen after the banking holiday and
to strengthen the position of all banks not possessed of ample unimpaired
capital structure. The effectiveness of these efforts has been greatly
augmented by the readiness of the Reconstruction Finance Corporation
to purchase the preferred stock, capital notes, or debentures of banking
institutions, or to lend funds for the purchase of such instruments by
individual shareholders of banks. The passage on June 16 of the Banking
Act of 1933, and particularly the providing in that Act for deposit insur-




FEDERAL

RESERVE

BANK

OF

KANSAS

CITY

ance on and after January 1, 1934, had a part in the alleviation of fears
for the soundness of the general banking structure.
In the Tenth Federal Reserve District great progress has been made
in the reopening, reorganization, or satisfactory liquidation of those banks
which were not permitted to reopen after the banking holiday or which
were restricted in their operations after the holiday, and numerous banks
have disposed of preferred stock or capital notes to the Reconstruction
Finance Corporation, either for the purpose of rehabilitating capital
structure or with a view to building capital structure up to a point commensurate with the nature and volume of business handled.
All licensed member banks of the Federal Reserve System were
required by law to participate in the Temporary Federal Deposit Insurance Fund, which became operative on January 1, 1934. Participation
is optional with State banks which are not members of the Federal Reserve System, but a very large percentage of such banks in this District
and throughout the United States have seen fit to qualify for the deposit
insurance.
The restoration of public confidence in banks is shown by the fact
that total deposits in the 708 Tenth District member banks of the Federal
Reserve System at the end of 1933 were slightly in excess of the aggregate deposits of the 785 such banks at the end of 1932. This renewed
confidence has placed the banks in a position to function in a normal
manner with respect to extending credit in their several communities,
and reports indicate that banks generally are seeking loans which may
be made safely, and that they will welcome a return of a normal demand
for loans. During the past year the loans and discounts of member banks
in this District dropped from $441,000,000 to $365,000,000. Investments
in Government securities were increased during the year from $213,000,000
to $284,000,000, and investments in other securities were reduced from
$215,000,000 to $199,000,000. Total deposits at the end of the year
were $1,085,000,000, indicating a large capacity for expansion of loans
as demands may develop.
OPERATIONS OF FEDERAL RESERVE BANK OF KANSAS CITY
Member bank reserve deposits were substantially larger than during
the previous year, averaging $91,432,000 in 1933, as compared with
$67,135,000 in 1932. Reserves maintained at the beginning of the year
were at about the level of the 1932 average, but increased steadily throughout the year to a December average of $114,508,000.
Federal reserve notes of this bank in actual circulation during January of 1933 averaged $91,847,000, which was approximately equal to
the amount of such notes in circulation during the last six months of 1932.
Circulation increased sharply in February and March, the average amount
during the latter month being $138,563,000. The volume of outstanding
notes was reduced rapidly in April and May, and more gradual reductions occurred during the balance of the year, bringing the average for
December down to $106,863,000. The average of Federal reserve notes
in circulation for 1933 was $111,380,000, as compared with an average
of $87,266,000 for the previous year. In May, 1933, a small amount of




NINETEENTH

ANNUAL

REPORT

Federal reserve bank notes was issued. The amount of such notes of this
bank in circulation averaged under $1,000,000 from May to September,
inclusive, but was increased substantially during the balance of the year
to an average of $9,633,000 for the month of December.
Total earning assets averaged $78,359,000 for 1933, as compared
with $70,261,000 for the previous year. United States Government
securities were held in an average amount of $55,719,000 during January,
and holdings were increased gradually during the year to a December
average of $83,180,000. Bills discounted for member banks averaged
$11,721,000 in January, increased sharply to an average of $25,156,000
for March, dropped rapidly during April and May to an average of $10,869,000 in June, and thereafter were reduced gradually to an average of
$1,976,000 in December. Acceptances were acquired as opportunity
offered, the average holdings for the year being $2,187,000.
Local demands for Federal reserve bank credit were greatly stimulated
by. the unsettled conditions immediately preceding the banking holiday,
but receded rapidly after the reopening of the banks and the general
restoration of public confidence. A few loans were made to member
banks at the time of the banking holiday under the provisions of Section
10-b of the Federal Reserve Act, as amended. There was no demand
for advances to nonmember banks and trust companies, under Section 404
of the Act of March 9, 1933, as amended, nor for advances to individuals,
partnerships, and corporations, secured by direct obligations of the United
States, as provided for under Section 13 of the Federal Reserve Act, as
amended. There was a light demand for direct advances to individuals,
partnerships, and corporations, through the discount of eligible paper,
as provided for under Section 13 of the Federal Reserve Act, as amended,
and advances of this character were made to three corporations during
the year.
The distribution of loans and the number of borrowing banks, by
States, are shown in the following table:
DISTRIBUTION O F LOANS
Number of
banks
served
1933
1932
Colorado
Kansas
*Missouri
Nebraska
*New Mexico
•Oklahoma
Wyoming
Totals
*
t
x
o

Number of
offerings
accepted
1933
1932

78
123
18
108
7
115
25

66
101
19
92
6
103
22

1,146
2,193
397
2,278
194
1,647
361

512
843
160
771
61
626
174

x 474

o 409

8,216

3.147

Average amount of loans outstanding
during
1932
1933
$

t

3.348,903.70
5,015,977.01
3,215,794.11
6,746,000.23
477,121.42
4,125,099.38
1,870,770.85

$ 24,799,666.70

Within District No. 10.
Includes direct advances to 1 private corporation.
Includes 2 Federal Intermediate Credit Banks and 2 nonmember banks.
Includes 1 Federal Intermediate Credit Bank.




$

t
t
t

1,901,879.11
1,610,729.63
1,854,443.74
1,971,091.69
203,080.85
1,951,481.72
615,401.70

1 10,108,108.44

FEDERAL

RESERVE

BANK

OF

KANSAS

CITY

The average rate of earnings on earning assets during the year was
1.94 per cent, as compared with 2.49 per cent for the previous year, and
total current earnings in 1933 were $1,742,259.93, as compared with
$2,021,468.13 for 1932. Current operating expense for the year was
considerably greater than in 1932, the difference being more than accounted
for by the extraordinary expense incident to the banking holiday and
conditions which prevailed immediately preceding and subsequent thereto.
The usual reserves for depreciation and replacement of bank buildings
and fixed machinery and equipment were established, and reserves for
possible losses were set up in the amount of $205,681.79. The various
adjustments in the earnings account left a deficit of $268,274.27 before the
payment of the usual dividends to stockholding member banks, and a
deficit of $518,595.66 after the payment of such dividends. This deficit
was charged to surplus account.
An increased volume of work, as compared with the previous year,
was handled by most of the departments of the bank and its branches
at Omaha, Denver, and Oklahoma City, such increases being particularly
noticeable in those departments handling the work incident to the duties
of the bank as fiscal agent of the United States Government and as fiscal
agent of the Reconstruction Finance Corporation.
The discount rate of 3T/iper cent for all classes of paper and all maturities, which was established for this bank on October 23, 1931, for advances
to member banks under the provisions of Sections 13 and 13-a of the
Federal Reserve Act, as amended, was maintained throughout the year 1933.




NINETEENTH

ANNUAL REPORT

MOVEMENT OF MEMBERSHIP
The number of active member banks in the Tenth Federal Reserve
District decreased from 785 on December 31, 1932, to 746 on December
31, 1933. The reduction of 39 member banks does not take into account
38 national banks in conservatorship at the end of the year, which were
operating only to a limited extent. The distribution of member banks
by States, at the end of 1932 and 1933, and the various changes during
1933 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
Member Banks
December 31, 1932

59
785
Totals
762
23
20
t 707
* Within District No. 10.
t See note (1) under following table.
CHANGES IN MEMBERSHIP DURING 1933

39

t 746

Additions to membership:
Conversion of nonmember bank to national
Admission of State bank
Total additions
Losses t o membership:
Suspension and insolvency
Merger between national banks
Absorption of national bank by nonmember
Conversion of national bank to nonmember
Voluntary liquidation
Voluntary withdrawal—State member
Total losses

Nebraska

•Missouri

Procedure effecting changes in membership
during 1933

14
15
0
17
1
12
0

Total

Total

88
215
41
147
8
215
32

0
6
4
5
0
2
3

Wyoming

4
11
8
7
1
1
7

102
224
37
159
9
225
29

•Oklahoma

State

84
204
33
140
7
214
25

Total

Kansas

4
5
5
3
1
1
4

Colorado

State

98
219
32
156
8
224
25

*New Mexico

Natl.

Colorado
Kansas
*Missouri
Nebraska
*New Mexico
•Oklahoma
Wyoming

Natl.

Active
Member Banks
December 31, 1933

Gains
Losses
to
to
Member- Membership
ship

3

3
17

6

1
3

5

0

6

4

5

0

2

20

11

13
3

1

3

10
1
1
2
1

6
3
1
1
1

41
7
2
3
5
1

14

15

1

12

2

1
0

17

0

59

—10
Net change in membership
—1
—9
—14
+3 — 3 9
+4 — 1 2
* Within District No. 10
The foregoing changes do not include new
national banks organized to succeed existing
national banks. The 10 such cases were located
as follows: Colorado, 1; Kansas, 1; Missouri, 2;
New Mexico, 1 ; Oklahoma, 5.
785
29
9
225
102
224
159
Number of member banks, end of 1932
37
8
215
32
88
215
41
147
Number of member banks, end of 1933
(1) 746
43
11
619
173
452
Number of nonmember banks, end of 1932
105
242
1,645
213
30
9
88
562
154
377
Number of nonmember banks, end of 1933
2)1,433
(1) Includes 38 national banks in conservatorship, located as follows: Colorado, 10; Kansas, 9; Missouri, 1 ;
Nebraska, 12; Oklahoma, 6. Does not include 2 national banks located in Colorado which are in conservatorship, and whose membership in the Federal Reserve System has been terminated through surrender
and cancellation of Federal reserve bank stock.
(2) Includes 180 nonmember State banks operating under restrictions, located as follows: Colorado, 10;
Kansas, 2; Missouri, 27; Nebraska, 114; New Mexico, 2; Oklahoma, 25.




10

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 operation 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, and comparative tables of earning assets, income
and disbursements, and volume of operations.
COMPARATIVE STATEMENT OF CONDITION
Resources

Dec. 31, 1932

Dec. 31, 1933

$ 61,480,000.00

$102,290,000.00

Cash reserves held by this bank against its deposits and
note circulation:
Gold or gold certificates lodged with the Treasurer of the United
States or in the vaults of the Federal Reserve Bank, and held
by the Federal Reserve Agent as part of the collateral deposited
by the bank when it obtains Federal reserve notes
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

2,100,525.11

10,985,039.61

13,876,248.53

Other cash

1,169,851.88

9,601,152.00

Gold or gold certificates in vault
Gold or gold certificates in the gold settlement fund lodged with the
Treasurer of the United States for the purpose of settling current
transactions between Federal reserve districts

32,254,959.77

9,986,388.89

Loans and Investments:
Loans:
On the security of obligations of the United States (including
adjusted service certificates)

9,397,250.08

$ 97,044,314.53

Total cash reserves

$156,097,101.34

$

$

On the security of or by the discount of commercial or agricultural paper or acceptances
Acceptances bought in the open market

464 176.50

39,332.50

11,047,299.32

United States Government securities

1,382,061.16

855,195.39

4,565,954.93

57,252,100.00

83,441,200.00

Total loans and investments
Miscellaneous Resources:

$ 69,618,771.21

$ 89,428,548.59

Bank premises, less reserves

$

$

Checks and other items in process of collection

3,558,674.15
19,107.904.57

All other miscellaneous resources

3,485,144.72
24,914,141.68

904,321.31

1,771,169.85

Total miscellaneous resources

$ 23,570,900.03

$ 30,170,456.25

Total resources

$190,233,985.77

$275,696,106.18




11

NINETEENTH

ANNUAL

REPORT

COMPARATIVE STATEMENT OF CONDITION
Liabilities

Dec. 31, 1932

Total currency in circulation
Deposits:
Reserve deposits maintained by member banks as legal reserves
against the deposits of their customers
United States Government deposits carried at the reserve bank
for current requirements of the Treasury.

$ 90,490,215.00

$106,814,235.00

$ 90,490,215.00

Currency in Circulation:
Federal reserve notes in actual circulation, payable on demand.
These notes are secured in full by discounted and purchased
paper. United States Government securities, gold, or gold
certificates.
Federal reserve bank notes in actual circulation, payable on demand.
These notes are direct obligations of this Federal Reserve Bank,
and are secured by United States Government securities or by
notes, drafts, bills of exchange, or bankers acceptances.

Dec. 31, 1933

$116,429,335.00

$ 68,490,304.39

$118,731,118.79

9,615,100.00

268,485.73

67,382.51

765,555.51

4,130,027.81

$ 69,524,345.63

$122,928,529.11

$ 16,631,179.53

$ 23,555,486.27

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

1,273,843.00

Capital paid in, equal to 3 per cent of the capital and surplus of
member banks.

961,448.85

$ 17,905,022.53

Total miscellaneous liabilities
Capital and Surplus:

$ 24,516,935.12

$

$

Surplus—that portion of accumulated net earnings which the
bank is legally permitted to retain

4,051,850.00

4,077,350.00

8,262,552.61

7,743,956.95

Total capital and surplus

$ 12,314,402.61

$ 11,821,306.95

Total liabilities

$190,233,985.77

$275,696,106.18

HOLDINGS OF EARNING ASSETS, EARNINGS T H E R E F R O M , AND
ANNUAL RATES OF EARNINGS

Year

Bills
Discounted

Bills
Purchased

United States
Government
Securities

Daily
average
holdings

1929
1930
1931
1932
1933

$40,823,097
14,816,919
16,322,944
24,799,667
10,108,108

$ 8,688,491
7,880,069
12,608,768
2,562,927
2,186,673

$ 4,980,199
18,909,064
30,895,477
42,816,951
66,064,211

Earnings

1929
1930
1931
1932
1933

1,985,508
624,945
544,242
873,477
296,744

447,700
204,411
221,531
97,208
25,636

198,424
530,153
499,884
772,554
1,199,837

44,060
0
4,267
3,652
0

Average
rates of
earnings
(per cent)

1929
1930
1931
1932
1933

4.86
4.22
3.33
3.52
2.94

5.15
2.59
1.76
3.79
1.17

3.98
2.80
1.62
1.80
1.82

4.57
0
2.34
4.48
0




12

Other
Earning
Assets
$

963,893
0
182,336
81,544
0

Total
$55,455,680
41,606,052
60,009,525
70,261,089
78,358,992
2,675,692
1,359,509
1,269,924
1,746,891
1,522,217
4.82
3.27
2.12
2.49
1.94

FEDERAL

RESERVE

BANK

OF

KANSAS

CITY

INCOME AND DISBURSEMENTS
1933

1932
Earnings:
$ 873,477.46
97,208.07
772,554.05
13,655.52
237,862.40
26,710.63

$

$2,021,468.13

$ 1,742,259.93

$

98,454.84
5,021.06

$

33,847.66
12,739.53

$ 103,475.90

$

46,587.19

For current bank operations, exclusive of cost of currency. These
figures include most of the expenses incurred as fiscal agent
of the United States.

$1,562,372.15

$ 1,612,466.43

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

50,342.43

110,649.43

91,081.49

85,491.08

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

296,743.55
25,635.55
1,199,837.30
5,161.38
187,716.23
27,165.92

Additions t o Earnings:
Profit on United States Government securities sold
All other additions
Total additions
Deductions from Earnings:

Depreciation and replacement reserves on buildings and fixed
machinery and equipment.
Reserve for self insurance

100,000.00

2,949.30

Reserve for possible losses

60,280.32

205,681.79

Furniture and equipment purchased

14,848.94

3,263.49

663.07

36,619.87

$1,879,588.40

$ 2,057,121.39

$ 245,355.63

$ * 268,274.27

$ 245,355.63

$

All other deductions
Total deductions
Net income
Distribution?
In dividends paid to member banks, at the rate of 6 per cent on
paid-in capital
Charged to surplus—The deficit in earnings, plus the amount
paid out in dividends.

* Deficit.

13

0

518,595.66

$ 245,355.63

Total net income




250,321.39

$ * 268,274.27

NINETEENTH

ANNUAL

REPORT

GROSS AND NET EARNINGS, AND DISTRIBUTION OF NET EARNINGS
SINCE ORGANIZATION

Period

Gross

1914 to 1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933

$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
1,667,667
1,555,084
2,021,468
1,742,260
$51,226,380

Totals

Net

(2)

(2)
(2)
(2)

T ransferred
to
Surplus

Dividends

$ 7,085,727
5,540,681
3,056,096
783,036
347,711
253,182
282,921
756,469
414,726
659,760
1,013,586
200,976
185,486
245,355
268,274

$ 969,694
257,672
268,620
275,655
275,313
265,697
258,427
252,764
252,754
253,254
256,549
259,397
253,620
245,355
250,321

$19,278,150

$ 4,595 092

Franchise Tax
Paid to United
States Government

(3)

(3)
(4)
(5)
(3)

$

$ 7,743,958

(1)

$ 6,116,033
3,042,781
486,918
157,432
7,240
518,879
2,449
50,370
16,197
40,651
75,704
460,373
577,381
138,275
518,595

$ 6,939,100

0
2,240,228
2,300,558
664,813
65,158
0
22,045
453,335
145,775
365,855
681,333
0
0
0
0

(1) Net reduction in surplus account after charging surplus and crediting franchise tax with $208,170
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.
(4) Deficit in earnings after payment of dividends, $439,106.50, and reserve for depreciation in United States
Government securities, $138,274.26, charged to surplus account.
(5) Credited to surplus from reserve for depreciation in United States Government securities.

VOLUME OF OPERATIONS IN PRINCIPAL D E P A R T M E N T S

Year

Number of
pieces

Notes discounted or
rediscounted

1931
1932
1933

40,624
54,776
23,138

$ 266,449,895
346,617,137
134,429,151

Currency received
and counted

1931
1932
1933

58,563,679
53,935,549
60,934,699

260,343,100
238,200,565
307,056,499

Coin received
and counted

1931
1932
1933

75,763,380
63,342,579
52,297,145

11,643,681
10,669,202
18,845,027

Checks handled

1931
1932
1933

64,412,000
51,085,000
50,433,000

8,461,469,000
6,326,036,000
6,787,932,000

Collection items
handled

1931
1932
1933

353,272
353,827
381,187

239,015,625
192,431,000
235,151,309

United States Government
coupons paid

1931
1932
1933

980,610
956,372
1,042,246

15,156,663
15,649,926
16,511,425

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

1931
1932
1933

106,902
89,871
207,026

254,696,044
245,748,475
390,744,410

Transfers of funds

1931
1932
1933

123,408
109,122
98,676

5,376,060,431
3,580,168,722
3,208,224,786




14

Amount

FEDERAL

RESERVE

BANK

OF

KANSAS

CITY

PERSONNEL
ELECTION AND APPOINTMENT OF DIRECTORS
C. C. Parks, Vice President of the First National Bank, Denver,
Colorado, was reelected Class A Director by member banks of Group 1,
for the term expiring December 31, 1936.
Willard D. Hosford, Vice President of the John Deere Plow Company,
Omaha, Nebraska, was reelected Class B Director by member banks of
Group 2, for the term expiring December 31, 1936.
E. P. Brown, Davey, Nebraska, farmer, was reappointed by the
Federal Reserve Board as Class C Director for the term expiring December 31, 1936.
J. B. Doolin, Alva, Oklahoma, engaged in the farm mortgage and
investment business, was appointed by the Federal Reserve Board on
November 8, 1933, as Class C Director, for the unexpired portion of the
term ending December 31, 1934, to fill the vacancy made by the resignation of H. M. Langworthy.
The following were appointed as directors of the Omaha, Denver,
and Oklahoma City Branches, to succeed directors whose terms expired
December 31, 1933. These appointments were for terms expiring on
December 31 of the years indicated:
Omaha Branch —- L. H. Earhart, Managing Director of Omaha
Branch, 1934; W. Dale Clark, President of the Omaha National Bank,
Omaha, Nebraska, 1936; and Daniel M. Hildebrand, farmer and stockman, Seward, Nebraska, 1936.
Denver Branch — J. E. Olson, Managing Director of Denver Branch,
1934; Harold Kountze, Vice President and Chairman of the Board, Colorado
National Bank, Denver, Colorado, 1936; and Merritt W. Gano, merchant,
Denver, Colorado, 1936.
Oklahoma City Branch — C. E. Daniel, Managing Director of Oklahoma City Branch, 1934; F. T. Chandler, Vice President of the Oklahoma
National Bank, Chickasha, Oklahoma, 1936; and J. B. Doolin, Alva,
Oklahoma, engaged in the farm mortgage and investment business, 1936.
MEMBER OF ADVISORY COUNCIL
W. T. Kemper, Chairman of the Board of Directors of the Commerce
Trust Company, Kansas City, Missouri, 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 1934.
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, appointed E. P.
Brown as Deputy Chairman of the Board of Directors, and re-designated
A. M. McAdams and N. R. Oberwortmann as Assistant Federal Reserve
Agents, all for the year 1934. All other officers of the bank and branches
were reappointed by the Board of Directors for the year 1934.
At the close of the year the bank and branches had a total of 22 officers
and 691 other employees, as compared with 22 officers and 555 other employees at the close of 1932.
15



DIRECTORS AND OFFICERS
OF THE
FEDERAL RESERVE BANK OF KANSAS CITY
FOR 1934

DIRECTORS

CLASS A
FRANK W. SPONABLE (1934), Paola, Kans.
E. E. MULLANEY (1935), Hill City, Kans.
C. C. PARKS (1936), Denver, Colo.

CLASS B

J. M. BERNARDIN (1934), Kansas City, Mo.
L. E. PHILLIPS (1935), Bartlesville, Okla.
WILLARD D. HOSFORD (1936), Omaha, Nebraska
CLASS C

J. B. DOOLIN (1934), Alva, Oklahoma
M. L. MCCLURE (1935), Chairman, Kansas City, Mo.
E. P. BROWN (1936), Deputy Chairman, Davey, Nebraska
MEMBER FEDERAL ADVISORY COUNCIL
W. T. KEMPER, Kansas City, Missouri
OFFICERS
M. L. MCCLURE, Chairman Board of Directors
and Federal Reserve Agent
E. P. BROWN, Deputy Chairman
A. M. MCADAMS, Assistant Federal Reserve
Agent and Secretary
N. R. OBERWORTMANN, Assistant Federal Reserve
Agent and Examiner
S. A. WARDELL, Auditor
H. G. LEEDY, Counsel

GEORGE H. HAMILTON, Governor
C. A. WORTHINGTON, Deputy Governor
J. W. HELM, Deputy Governor and Cashier
JOHN PHILLIPS, JR., Assistant Cashier
E. P. TYNER, Assistant Cashier
G. E. BARLEY, Assistant Cashier
M. W. E. PARK, Assistant Cashier
G. H. PIPKIN, Assistant Cashier

OMAHA BRANCH
DIRECTORS AND OFFICERS
A. H. MARBLE (1934), Cheyenne, Wyo.
WM. DIESING (1934), Omaha, Nebr.
W. E. HARDY (1935), Lincoln, Nebr.
T. L. DAVIS (1935), Omaha, Nebr.
W. DALE CLARK (1936), Omaha, Nebr.
DANIEL M. HILDEBRAND (1936), Seward, Nebr.
L. H. EARHART (1934), Managing Director
WM. PHILLIPS, Assistant Cashier

G. A. GREGORY, Cashier

O. P. CORDILL, Assistant Cashier

DENVER BRANCH
DIRECTORS AND OFFICERS
H. W. FARR (1934"), Greeley, Colo.
MURDO MACKENZIE (1934), Denver, Colo.
R. H. DAVIS (1935), Denver, Colo.
HENRY SWAN (1935), Denver, Colo.
HAROLD KOUNTZE (1936), Denver, Colo.
MERRITT W. GANO (1936), Denver, Colo.
J. E. OLSON (1934), Managing Director
S. A. BROWN, Cashier

JOHN A. CRONAN, Assistant Cashier

OKLAHOMA CITY BRANCH
DIRECTORS AND OFFICERS
NED HOLMAN (1934), Oklahoma City, Okla.
LEE CLINTON (1934), Tulsa, Okla.
AUSTIN MILLER (1935), Oklahoma City, Okla.
H. H. OGDEN (1935), Muskqgee, Okla.
F. T. CHANDLER (1936), Chickasha, Okla.
J. B. DOOLIN (1936), Alva, Okla.
C. E. DANIEL (1934), Managing Director
R. O. WUNDERLICH, Cashier
R. L. MATHES, Assistant Cashier




16

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