Full text of Annual Report of the Federal Reserve Bank of Kansas City : Operation of Federal Reserve Bank of Kansas City, 1920 : Sixth Annual Report to the Federal Reserve Board

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

/ 3
OPERATION OF

Federal Reserve Bank
of Kansas City




1920

SIXTH ANNUAL REPORT
TO THE

FEDERAL RESERVE BOARD

ANNUAL REPORT
of the

Federal Reserve Agent
of the

Tenth Federal
Reserve District
to the

Federal Reserve Board




•,'•'•-'

"j-i\j-..;h

.,.,„
COVERING THE CALENDAR YEAR

1920

ASA E. RAMSAY.
Chairman and Federal Reserve Agent

•£

rfjj.

•

-

v

/

LETTER OF TRANSMITTAL
* „ • -*-.;<-i[- <•-.,-

J a n u a r y 22, 1 9 2 1 .

Sir:

: I have the honor to transmit herewith the sixth annual
report of the Federal Reserve Bank of Kansas City covering
the year 1920.
1

Respectfully yours,

i

\
)

L

ASA E. RAMSAY,
Chairman and Federal Reserve Agent.

Jion. W. P. G. Harding, Governor,
j Federal Reserve Board,
Washington, D.. C,
;
;
i
•
j




-'A

!

DIRECTORS AND OFFICERS
OF THE

FEDERAL RESERVE BANK OF KANSAS CITY
FOR 1921

DIRECTORS
CLASS A

CLASS B

J. C. MITCHELL (1921), Denver, Colo.
W. J. BAILEY (1922), Atchison, Kan.
E. E. MULLANEY (1923), Hill City, Kan.

THOMAS C. BYRNE (1921), Omaha, Neb.
M. L. McCLURE (1922). Kansas City. Mo.
H. W. GIBSON (1923), Muskogee, Okla.

CLASS C
R. H. MALONE (1921), Denver, Colo.
FRED W. FLEMING (1922), Kansas City, Mo.
ASA E. RAMSAY (1923), Chairman, Kansas City, Mo.

MEMBER ADVISORY COUNCIL
E. F. SWINNEY, Kansas City, Mo.

OFFICERS
ASA E. RAMSAY, Chairman and Federal
Reserve Agent
FRED W. FLEMING, Deputy Chairman
C. K. BOARDMAN, Assistant Federal
Reserve Agent and Secretary
S. A. WARDELL, Auditor
A. E. BOLT, Assistant Auditor
H. H. RHODES, Branch Auditor
JAMES E. GOODRICH, Counsel

J. Z. MILLER, Jr., Governor
C. A. WORTHINGTON. Deputy Governor
J. W. HELM, Cashier
JOHN PHILLIPS, Jr., Assistant Cashier
E. P. TYNER, Assistant Cashier
G. E. BARLEY, Assistant Cashier
M. W. E. PARK, Assistant Cashier
A. G. FROST, Assistant Cashier
A. M. McADAMS, Assistant Cashier
G. H. PIPKIN, Assistant Cashier

OMAHA BRANCH
DIRECTORS AND OFFICERS
WM. J. COAD, Omaha
P. L. HALL, Lincoln

GEO. E. ABBOTT, Cheyenne
R. O. MARNELL, Nebraska City
L. H. EARHART, Omaha

L. H. EARHART, Manager
P. R. FRERMAN, Cashier
W. D. LOWER, Assistant Cashier
G. A. GREGORY, Assistant Cashier
T. GORDON SANDERS, Branch Auditor

DENVER BRANCH
DIRECTORS AND OFFICERS
A. C. FOSTER, Denver
ALVA B. ADAMS, Pueblo
C. A. BURKHARDT, Denver

C. C. PARKS, Denver
JOHN EVANS, Denver

C. A. BURKHARDT, Manager
J. E. OLSON, Cashier
R. W. SMITH, Branch Auditor
ALBERT J. CONWAY, Assistant Cashier

OKLAHOMA CITY BRANCH
DIRECTORS AND OFFICERS
Wm. MEE, Oklahoma City
DORSET CARTER. Oklahoma City
L. K. THURMOND, Oklahoma City
T. P. MARTIN, JR., Oklahoma City
C. E. DANIEL, Oklahoma City
R. O. WUNDEKL1CH. Cashier



C. E. DANIEL. Manager
R. L. MATHES. Branch Auditor




OPERATIONS OF THE
FEDERAL RESERVE BANK OF KANSAS CITY
IN 1920
GENERAL BUSINESS CONDITIONS

Nineteen hundred and twenty began with industry and
trade going at high speed and general conditions but little
different from those which prevailed through the latter part
of 1919. The situation early in the year offered encouragement for a larger output of the products of the Kansas City
Federal Reserve District, which are almost exclusively essentials. It called for increased manufacture and more liberal
distribution of merchandise to replace supplies exhausted during the war period.
However, many factors unfavorable to healthy business
progress were to be reckoned with. First, the tremendously
increased financial requirements for doing business on a larger
scale than ever before undertaken, and especially with values
on many items more than double those of pre-war years, augmented the tendency to further expand credits. Speculation,
such as to involve the use of vast sums of money and credits
for other than essential business was rampant. Evidences of
the extravagances which came with relaxation from the strain
of war still existed. Overshadowing all was a spirit of unrest,
a protest against living costs which were mounting higher and
higher, and a clamor for speedy adjustment of prices on consistent peace time levels.
In the face of these conditions was a determination,
shared by all interests of the Kansas City Federal Reserve
District, to "carry on" and to make the record of 1920 in
industrial and commercial activities surpass the records of
preceding years.
With the passing of the war demand for increased production of wheat, a large number of farmers turned their
attention to rotation of crops. As a result, 1920 was the best
crop year of history in point of production at least, and notwithstanding the reduced wheat acreage the yield was well
above the yearly average.
The year's live stock receipts at the markets were but a
shade under the average yearly receipts for the ten years
preceding the war period. Compared with the heavy receipts
at the markets in 1919, however, the record for the last twelve
months indicates a loss closely approximating 20% in the
number of all animals marketed. This apparently heavy decrease for 1920 is attributed in part to the enforced marketing in 1919 of live stock from regions affected by the drought.
There was also a very large marketing of unfinished live stock




—5—

in the latter half of 1919 on account of the high cost of feed
and pasturage which was out of proportion to the prices paid
for live stock at the markets. Notwithstanding the situation
at times has been discouraging, growers and breeders have
made progress in the building up of their herds and flocks
following the heavy drafts on the live stock industry during
the war.
Crude oil production in this district was approximately
165,000,000 barrels, which is about 35,000,000 barrels more
than was produced in 1919, and about 22,000,000 barrels more
than the total production of 1918, the last year of the war.
Former records for ore production in the zinc and lead
fields of the district were shattered in 1920, but in production
of gold and silver, the year's operations were below those of
1919. The tonnage of coal mined in the fields of Missouri,
Kansas, Oklahoma and also in the Rocky Mountain States
in this district far exceeds the output of the previous year
and closely approximated the tonnage of 1918.
Various lines of manufacture in this district were very
active for the major part of the year, and, together with the
flour milling and meat packing industries, were about on a
normal basis of operation.
Building and construction activities, while restricted by
high cost of materials and labor, closed the year slightly ahead
of 1919 both in number and value of building permits. Yet
building requirements in all of the cities and towns throughout the district were so great—after neglect during the war
period—that no appreciable relief from inadequate housing
conditions has been apparent.
The volume of mercantile trade, both wholesale and retail, was larger than that of 1919, and in some lines 1920 was
the banner year. The knowledge that prices could not long
be maintained at abnormally high levels brought an element
of uncertainty to the situation. Extreme caution was exercised by retailers in buying from wholesalers and by wholesalers in buying from manufacturers, with the result that buying was on something of a "hand to mouth" basis throughout
the entire year. Although the aggregate of sales was very
large, it is doubtful if stocks properly invoiced would show
any margin of profit, due to the falling prices in the last
ninety days of the year.
The outstanding feature of the year 1920 was a decline
in prices of commodities. Starting during the midsummer,
practically every product of this district was affected, and
prices registered an average decrease of approximately 35%
from the high levels of February 1. The recession in prices,
while necessary in the readjustment to obtain stability,
brought about in the last ninety days of the year a depression
of the business situation which was keenly felt throughout




this district, and is somewhat reflected in all lines of trade
and in every department of industry. It caused the slowing
down of mercantile activities, curtailed manufacturing, reduced operation at the metal mines, restricted development
operations in the oil fields, increased building stagnation and
resulted in a slower movement of grain to the markets, many
farmers preferring to hold their grain in anticipation of
higher prices.
GENERAL REVIEW OF THE SERVICES AND ACTIVITIES
DURING 1920

During the year just closed the volume of business transacted in each of the departments has far exceeded all previous records. At the beginning of the year our loans, on the
decline, stood at $128,280,694.86. Liquidation continued
until February 3, when the loans reached the lowest period
during the year, $90,783,586.83, after which they immediately
began to increase, every month showing a higher level until,
on November 6, the high point was reached, $164,277,697.84.
From November 6 to the end of the year loans have shown
some reduction, and on December 31 the total was $141,572,922.18.
The net earnings of the bank from the year's operations
amounted to $5,540,681.61, or at the rate of 130% per annum
on the average paid-in capital for the year, as compared with
99% in 1919.
Except for the months of February and March and the
first part of April, this bank was a continuous borrower from
other Federal Reserve Banks. Notwithstanding the increased
rates effective following the progressive discount rate plan,
made operative on April 19, 1920, our rediscounts-continued
to increase, and on November 3 reached the high point of
$48,230,109.59.
Throughout almost the entire year the combined reserves
of the bank were maintained only slightly in advance of the
requirements. The number of penalties assessed for deficient
reserves made necessary an increase in the penalty rates—
effective January 2, 1921.
On April 7, 1920, our Transit Departments handled a
total of 244,314 items, aggregating $55,218,909.19, far exceeding the highest previous record. The daily average number of items was 169,870. The volume of currency and silver
shipments has steadily increased until, on December 29, the
receipts at the head office reached the maximum amount for
any one day, being 197,000 bills, for a total of $1,430,000.
The total head office receipts for the year were 28,000,000
bills, aggregating $200,000,000, shipments and deliveries totaled 41,000,000 bills, aggregating $222,000,000.



—7—

Fiscal Agency operations consisted principally of sales
oi Treasury Certificates of Indebtedness and War Savings
Securities, and the exchange and transfer of Liberty Bonds;
the number of transactions handled during the year being
19,522,220 pieces, having a total value of $2,532,977,328.61.
Although no active campaign was made for additional
State Bank and Trust Company members, there was a net
increase in the membership of fifteen. An Examination Department was organized on March 1, and during the latter
part of the year, a Library Department was installed. More
attention has been given to educational and recreational activities. With the added force at the Oklahoma City Branch,
the number of officers and employees of the bank and
branches at the close of the year was 886, compared with
583 on December 31, 1919.
Although unavoidable delays have been experienced as
to material for the new building, the work is progressing very
satisfactorily, and, barring unforeseen contingencies, the occupancy of the building is promised by November, 1921.
FINANCIAL RESULTS OF OPERATION
The gross earnings from operations for the year were
$7,409,987.31; expenses $1,857,959.81, leaving net earnings
of $5,552,027.50. Adding net credit to deferred charges of
$233.30 and deducting depreciation of $11,579.19 on U. S.
Bonds carried, the net promits amounted to $5,540,681.61,
which were distributed as follows:
Dividends paid to members
$ 257,672.52
Amount carried to normal surplus
:. 2,793,866.64
Amount carried to super surplus
248,914.24
Amount paid into Treasury of the Government as a franchise tax
2,240,228.21
The gross earnings at the head office were
4,614,348.31
At the Omaha Branch
...
2,086,346.52
At the Denver Branch
709,292.48
Total expenses at the head office were
1,170,887.02
At the Omaha Branch
349,068.83
At the Denver Branch
181,470.92
At the Oklahoma Branch
156,533.04
Net earnings at the head office (deducting Oklahoma City
Branch expense of operation)
3,286,928.25
At the Omaha Branch
1,737,277.69
At the Denver Branch
527,821.56

Of the total gross earnings of the head office and
branches $6,441,476.47 represented the revenue derived from
bills discounted, $211,974.98 came from discounts on bills
bought in the open market, $505,539.24 from interest on United
States securities and $238,424.89 from penalties on deficient
reserves.
The actual operating expenses at the head office and
branches for the year were $1,514,115.57; the cost of issuing




and redeeming federal reserve currency was $131,381.54; tax
on bank notes $83,421.98; while the furniture, fixtures and
equipment, including the Oklahoma City Branch, cost $126,707.39.
Comparing the net earnings from operations-of $5,552,027.50 for 1920, with the net earnings of $3,775,413.00 for
1919, indicates in a very impressive way the enormously increased volume of business handled during the year. It may
be of interest to compare the income for 1920 with that of
previous years:
Income for 1915, including a part
of year 1914 (deficit).
1916 net income
1917 net income
1918 net income
1919 net income
1920 net income

Amount
$

23,480.06
181,568.25
644,343.00
2,756,130.88
3,775,515.55
5,552,260.80

Percent
5.8%
20.5%
78.2%
99.0%
130.0%

The total gross income since organization has been
$17,250,370.27; total expenditures $4,364,031.85; leaving net
income from November 16, 1914 to close of business December
31, 1920, $12,886,338.42. In the distribution of this income
member banks have been paid $1,227,366.96 as dividends;
amount transferred to surplus account $9,158,814.24; depreciations $259,929.01 and amount paid to the United States Government as franchise tax, required by the Act, as amended,
$2,240,228.21.
A comparative detailed statement of income and expenditures for the years 1917, 1918, 1919 and 1920 is given in
schedule "B", a recapitulation of which, together with distribution of profits, is given in schedule "BB" as on December 31,
1919 and December 31, 1920.
DISCOUNT RATES
Changes in Rates

At the close of business last year our rate on member bank
collateral notes, secured by Government securities, was 41/2%
C
to 5 /,'• ; by eligible paper, 5%. The rate on commercial paper
from 15 to 90 days was 5r/, ; on six months' agricultural paper
5I/2 '}'<, and on live stock paper 51/.;.
The discount rates on some classifications of notes were
slightly changed on January 3, January 23, February 26, July
3, and September 28. The most important change was that
of January 23, when the member bank notes were placed on
a 5V2% basis, when secured by Liberty Loan Bonds or Victory
Notes, and 6'/< when secured by eligible paper. The rates on
all commercial, industrial and live stock maturities were in


—9—

creased from 5 ¥2% to 6%, which rates maintained throughout the year and are now effective.
On September 28, loans secured by Government bonds
were increased from 51/2% to 6%; the amount advanced
against Victory Notes decreased to 95%, and the amount advanced against Liberty Bonds to 85% of their respective face
values.
On April 19, this bank adopted that provision of the
amended Act which permits the application of progressive
rates of discount where members receive accommodations in
excess of their basic lines.
Progressive Discount Rate
As early as June 13, 1918, our directors observed a tendency on the part of a comparatively few members to absorb
the lending power of this bank, and a resolution was adopted,
subject to the approval of the Federal Reserve Board, outlining a plan of progressive rate of discount quite similar to
the one now in operation. Council for the Federal Reserve
Board was of the opinion, however, that the application of
different discount rates to the same class of paper as anticipated in the resolution would be contrary to the provisions of
the Federal Reserve Act.
The discount relations with member banks throughout
the year 1919 demonstrated more than ever the necessity for
the adoption of some regulation whereby the lending power
of this bank would be more evenly distributed among the
members, since a comparatively few continued to absorb a
major portion of the bank's lending power, which, aside from
the hazard of making unusually large advances to a few members, left the bank without available funds to extend credit
to the vast majority of members which were either not borrowing at all or borrowing only moderately.
The situation prevailing in the Tenth District was not
dissimilar to that prevailing in some other districts, and for
the purpose of bringing about some regulation of those habitually borrowing in excessive amounts, the Federal Reserve
Board embraced in its annual report for 1919 a recommendation to Congress, as a consequence of which the Federal Reserve Act was amended on April 13, 1920, to grant the privilege to any district of adopting what is now called the progressive discount rate.
On April 16, our Board adopted the provisions of the
Act, as amended, and the progressive discount rate became
effective in the Tenth Federal Reserve District on April 19,
1920. Its adoption was in no sense a desire for greater revenue or to apply a new method to discount transactions with
members. Experience had shown that in order to discourage
further expansion of loans it would be necessary to adopt



—10—

some method of making it unprofitable for members to borrow in excess of their basic lines. The basic line of a member bank is determined by deducting from the amount of its
average reserve balance for the preceding month the 35%
reserve on deposits which Federal Reserve Banks are required
by the Act to maintain; to the remainder is added the amount
of capital stock of the Federal Reserve Bank paid in by the
member, and this sum multiplied by two and one-half (2V&)
How far the progressive discount rate plan has succeeded
in bringing about a better distribution of credit among the
members is apparent when the status existing on April 19,
is compared with any subsequent date. On April 19, 1920,
out of a total membership of 1,035, 351 members had borrowed not only the entire lending power of this bank, but an
additional ten million dollars represented by rediscounts with
other Federal Reserve Banks. On December 31, 1920, 352
of the 684 members, which were not borrowing on April 19,
had become borrowers, more than half of those banks never
before having had discount relations with the Federal Reserve
Bank. Even under the higher discount rates as applied
through the progressive rate plan, the demand for loans from
members was so strong that this bank was forced to depend
upon other Federal Reserve Banks for funds continually
throughout the year.
Under the Federal Reserve Bank of Kansas City plan,
loans secured by Liberty Bonds and Victory Notes, owned by
members, and Treasury Certificates of Indebtedness of any
issue do not add to the credit structure upon which the progressive rate is computed. On offerings in excess of a member's basic line the rate is progressed one-half of one per cent
for each additional amount of 25% of the basic line; therefore, when a member is borrowing over 100% and not more
than 125% of its basic line, the rate on such excess is 6l/2%>
and on borrowings over 125% and not exceeding 150% of the
basic line, the rate on that additional excess is 7%, and so on.
Upon the adoption of the progressive discount rate plan,
it was necessary to provide some method of adjustment to
reimburse member banks for the higher rates of interest paid
on unmatured paper carried after the retiring of paper which
had been discounted at a comparatively low rate. Accordingly, the Adjustment Department was organized and installed which maintains a daily analysis by rates of the liability of each member bank discounting at the progressive
rate, in order that the rates actually paid may be adjusted
under the progressive plan.
DISCOUNT OPERATIONS

The number of discount transactions of the Federal Reserve Bank of Kansas City for the year 1920 was approximately 501/? greater than for 1919, which figures in turn were



—11—

approximately double those of 1918. Compared with 16,024
transactions for an aggregate of $1,555,596,621.30 for the
year 1919, the total number of discount offerings accepted
from member banks in 1920 was 23,454, the aggregate amount
being $1,667,943,229.49. Of this enormous sum, 114 Colorado
banks discounted $222,543,009.98; 171 Kansas banks $125,642,178.23; 45 Missouri banks $687,077,598.49; 192 Nebraska
banks $356,963,941.41; 12 New Mexico banks $10,072,982.42;
257 Oklahoma banks $240,009,504.65 and 35 Wyoming banks
$25,634,014.31, which makes a total of 826 member banks accommodated out of a total membership of 1,087, as compared
with 679 banks accommodated during 1919.
During the month of February $105,406,440.37 of paper
was handled, the least of any month during the year. In
October the loans handled amounted to $163,968,589.43, the
largest amount of any one month. The total number of notes
discounted was 119,791, or an average of approximately 425
per day. On one day in December there was discounted at
the head office 814 notes, while on the same day three years
ago there were handled only five notes, a striking contrast of
the growth in volume of business handled in this department.
In addition to the volume of discounts for member banks, the
work of this department was greatly increased due to the
many rediscount transactions with other Federal Reserve
Banks.
Rediscounts With Other Federal Reserve Banks

Just prior to January 1, 1920 (December 19, 1919), it
was necessary to rediscount with other Federal Reserve Banks
$7,000,000, which amount was increased from time to time
during the latter part of December until on January 2 it
reached $16,208,500.00, at which time we were carrying
Bankers' acceptances, aggregating $8,086,175.58. On January 26, with the collection of Bankers' acceptances, our rediscounts with other Federal Reserve Banks were entirely
eliminated.
During February and the first three weeks of March, we
were carrying rediscounts for other Federal Reserve Banks
amounting to from $3,000,000.00 to $10,000,000.00. On April
16 it was necessary to again rediscount with other Federal
Reserve Banks at that time in amount $6,000,000.00. From
that date the amount of rediscounts gradually increased until,
on November 3d, they reached the maximum amount of $48,230,109.59. Since that date they have gradually decreased
and on December 31 our rediscounts amounted to $29,060,531.21. Rediscounts amounting to $411,637,404.12 with other
Federal Reserve Banks were represented through 94 transactions as against 7 transactions for the year 1919, in total
amount $56,500,000.00. A detailed schedule of rediscounts
with and for other Federal Reserve Banks as of close of business each Friday during the year 1920 will be found on Schedule "CC."



—12—

Acceptances
There was a slight increase in the use of trade acceptances, principally, however, acceptances of concerns located
within the district drawn by manufacturers and wholesalers
outside the district. The volume under discount has been
very small as compared with the total loans. There were no
open market purchases of trade acceptances during the year.
The increase in the volume of bankers' acceptances originating within the district has been due almost entirely to the
financing of wheat and flour for export. The amount of
open market purchases of bankers' acceptances as shown in
Schedule "C" consists entirely of acceptances arising out of
export transactions.
Investments
The total United States Securities purchased during the
year was $128,078,650.00, consisting principally of one-day
certificates of indebtedness issued by the Treasury to cover
overdrafts of the United States with this bank.
Classification of Paper Discounted
Total trade acceptances handled during the year
amounted to $10,141,682.98; agricultural and live stock paper
$237,761,423.68; industrial and commercial paper $322,569,467.94 (including—Secured by United States Securities $48,616,739.38), bankers' acceptances $368,482.74, while member
bank collateral notes aggregated $1,097,143,972.15, of which
amount $1,065,409,582.06 was secured by United States Securities (Schedule "C").
These figures do not give a correct impression of the proportion of the various classes of paper, as, for instance, the
average amount of agricultural and live stock paper, on account of its long maturity, ranges from 55 to 60% of our total
average loans. The maximum maturity of member bank collateral notes is fifteen days, and quite frequently such notes
are made for a shorter time, or payment is anticipated before
matuiil,y.

Tlic protccda of muoh of +Viis naDer claSSlf100! dS

commercial and industrial are used for agricultural and live
stock purposes. Practically all of the loans made to country
bankers and a large part of the loans made to city hankers
are for the purpose of furnishing to farmers and stock raisers,
funds to produce their crops and to purchase and feed live
stock.
Rejections
The total number of notes rejected was 20,362, amounting to $79,786,967.07, less than 41/2% of the amount of all
offerings.
.-v




'

—13—

RESERVES AND PENALTIES
Reserve Position

The average daily reserves maintained by the Federal
Reserve Bank of Kansas City, against the combined Federal
Reserve Notes and net deposit liabilities:
January, 1920
42.8%
February, 1920
45.3%
March,
1920
45.2%
April,
1920
41.0%
May,
1920
41.8%
June,
1920
41.2%
Daily average combined reserves maintained during the
first six months of 1920, 42.9%.
July,
1920
41.0%
August,
1920
41.5%
September, 1920
40.8%
October,
1920
40.9%
November, 1920
:40.8%
December, 1920
40.8%
Daily average combined reserves combined reserves maintained during the last six months of 1920, 41%.
Daily average combined reserves maintained during the
whole year of 1920, 41.9%.
Schedule "H" shows the fluctuation of reserves against
net deposits during the year, the average for 1920 being 43.5%
as compared with 45.2% for 1919 and 55% for 1918. In
order to maintain the required reserve, it has, however, been
necessary for the Federal Reserve Bank of Kansas City to
rediscount with other Federal Reserve Banks continuously
since April 16. This is the natural consequence of increased
operations and unprecedented demand for accommodations
on the part of member banks.
Deficient Rcocnra

At one or more times during the year penalty assessments
for deficient reserves were assessed against 78 city banks
and 715 country banks, a total of 793 banks out of a membership of 1,087, the penalties aggregating $238,424.89, of
which the sum of $16,947.28 was assessed against 172 banks
in Kansas; $82,770.07 against 42 in Missouri; $52,891.19
against 166 in Nebraska; $12,142.04 against 101 in Colorado;
$315.15 against 10 in New Mexico; $65,484.77 against 263 in
Oklahoma and $7,874.39 against 39 banks in Wyoming. As will
be noted on Schedule "B," the amount of penalties for 1920
almost equaled the combined penalties for the years 1917,
1918 and 1919.



—14—

So important is the subject, and so serious the consequences to the stability of the Federal Reserve Bank and its
power to render aid, that on December 31 the Federal Reserve Board approved revised rates of penalties to be assessed
as follows:
Banks located in reserve cities will be assessed at the
rate of 2l/c above the 90-day rate for the first deficiency
occurring after January 1, 1921; the penalty rate to increase
one-quarter of one per cent for each subsequent weekly deficiency during the calendar year. Banks located in other
than reserve cities will be assessed at the rate of 27, above
the 90-day rate for the first deficiency occurring after January 1, 1921; the penalty rate to be increased one-half of one
per cent for each subsequent semi-monthly deficiency during
the year.
TRANSIT OPERATIONS

The volume of clearing operations has steadily increased,
items on all banks in the district being collected at par during
the entire year with the exception of the State of Nebraska,
which was placed on a par basis on February 20.
During the year the Transit Department at the head
office handled a grand total of 30,761,789 country items,
or a daily average of 97,601. Clearing house items totaled
3,929,663, or a daily average of 12,929. The maximum volume of business handled during any one day was on April 7,
when we handled a grand total, including clearing house and
country items, of $205,335. The minimum day of the year
was February 24, when the number of items handled was
69.072. The largest day as to actual value of items handled
was March 1, $55,208,832.67; and the lowest day, November 27, $14,047,712.29.
Including the branches, the average daily number of
country items handled was 149,797, with an average total of
$18,644,472. The average daily number of city items was
20.073, with an average total of $20,929,295.00.*
The number of employees in the Transit Department at
the head office during the year varied from 140 to 185. The
opening of the Oklahoma City Branch resulted in a decrease
in the handling of about 20,000 items per day at the head
office, and the number of employees at the close of the year
was reduced to 155.
The work in our Wire Transfer Division has increased
more than 100%, due to the fact that more member banks
are appreciating the service offered of transferring, without
cost to them, funds to their correspondents in Federal Reserve and branch cities.
The volume of business transacted through the City and
Country Collections Division has materially increased, as mem


—15—

ber banks are availing themselves more freely of the privilege
of forwarding for collection through the Federal Reserve
Bank, maturing notes and bills and other collection items.
Member banks find from experience that we are able to give
them satisfactory service on their collections, and in many
cases at a saving on exchange charges and an actual saving
of time. During 1920 this division at the head office handled
a total of 55,301 items, of which 4,371 were returned and
876 now outstanding, making a total of 50,054 items collected,
amounting to $93,787,697.89, which is nearly double the amount
handled during the year 1919.
The direct sending privilege, which is granted to member banks and by which they are able to send cash items
direct to other Federal Reserve Banks and branches for credit
with this bank, has been extended to an increased number
of members during 1920, so that at the present time our direct
sending banks are forwarding to other Federal Reserve Banks
and branches 200 letters daily as against an average of about
40 letters in 1919. This privilege will doubtless be extended
to other members as they appreciate the advantage of this
service, which will result in the reduction of the volume of
items handled at the head office, as these items will not
actually pass through our hands.
The total transactions of the Transit Department of the
head office and branches combined were enormous, representing the handling of 53,881,602 items, aggregating $13,011,582,140.00, a daily average of 169,870 items, amounting
to $39,573,767.00. Schedule "R" provides in detail the classified record of the business handled.
PRIVATE WIRE OPERATIONS

The private wire system connecting all Federal Reserve
Banks, their branches and the Federal Reserve Board has
proved of inestimable value. On August 2, 1920, a wire was
installed connecting the main office with the Oklahoma City
Branch.
The daily settlement of balances between the Federal
Reserve Banks and branches through the Gold Settlement
Fund, made possible through the use of the private wires,
has been most beneficial. Some idea of the increase in the
volume of business of the private wire system may be obtained from a comparison of the number of outgoing words
in December, 1920, as against December, 1919, as follows:
December, 1919, number words outgoing:
Kansas City
55,746
Omaha Branch
17,260
Denver Branch
23,681
Total



96,687
—16—

December, 1920, number words outgoing:
Kansas City
254,181
Omaha Branch
43,454
Denver Branch
36,752
Total
334,387
The wires have been used during the year to effect 13,624
transfers for member banks for a total of $670,026,395; all
without expense to members.
FISCAL AGENCY OPERATIONS

The Fiscal Agency Department and the Government Savings Organiation continued under the direct supervision of
the Governor's office, the Government Savings Organization
conducting the selling campaign for War Savings securities
and the Fiscal Agency Department handling all Bond and
Certificate of Indebtedness operations and the accounting of
War Savings Securities stocks, sales and deliveries.
The first half of the year was the busiest six months this
Department has ever experienced, not even barring those
periods during which the Liberty Loans were floated. At the
beginning of the year there were collections to make on account
of subscriptions to the Victory Liberty Loan. In connection
with this loan, deliveries were made of 4%, coupon notes to
subscribers, aggregating 16,731 pieces, or a total of $1,253,000, and deliveries were made of 5,109 registered notes, aggregating $3,426,900. Redemptions were also made of 1919
War Savings Securities and deliveries of the new 1920 War
Savings Securities. The exchange of temporary for permanent bonds began in March, the handling of which, considering the amount involved, proved during the year to be the
largest single operation of the Department. The Exchange
and Conversion Divisions were also busily engaged during
this period in the exchange of temporary coupon for registered bonds, bondholders taking advantage of the exchange
to permanent bonds at this time to have their bonds registered.
During the past year exchanges of temporary bonds for
permanent bonds were made as follows:
No. of Pieces
Amount
Temporary Coupon for Permanent
Coupon
1,130,154 $181,419,800
Temporary Coupon for Registered.. 161,826
31,372,403
Temporary Coupon for Converted
Permanent Coupon
170,716
20,508,350
Temporary Coupon for Converted
and Registered
9,147
1,324,850
Totals




1,471,843

$234,625,400

Exchange transactions affecting registered bonds were
made during the year as follows:
Exchange
No. of Pieces
Amount
Coupon for Registered
209,247
$43,961,350
Registered for Coupon
26,743
6,470,400
Registered for Registered
29,286
8,563,950
Securities on hand in our vaults at close of business December 31 aggregated $178,705,617.25, as follows:
Delivery stocks
$159,434,361.50
In custody
10,725,958.42
In process of being handled
8,545,297.33
Total

$178,705,617.25

This Department throughout the past year has also
handled the sale of eighteen issues of Certificates of Indebtedness, subscriptions to such issues, aggregating $120,180,000,
as follows:
Issues
Rates
Subscriptions
1
41/2%
$ 16,000,000
3
43/4%
_
26,201,000
1
5% .._
1,948,000
1
_
514%
3,451,000
1
51/2% 4,309,000
7
_
5%%
30,241,500
4.._
6%
38,029,500
18

$120,180,000

Classified as to regular and tax issues, amounts would be:
No. of
No. of
Total
Issues
Subscribers
Subscriptions
Tax
10
11,025
$ 80,442,500
Regular
8
5,363
39,737,500
18
16,388
$120,180,000
The above issues were sold to 458 National Banks, 738
State Banks, 40 Trust Companies, and 9,833 individuals, while
subscriptions were made directly through the Department
last year by only 60 individuals.
At the close of the year 723 banks of the district were
qualified War Loan Depositaries. Payments throughout the
year were made by credit in War Loan accounts, aggregating
$65,857,661.38, withdrawals from such depositaries throughout the year aggregating $76,559,059.59.
Custodies held to secure war loan accounts have decreased as compared with previous years, the average amount
held for the year being $12,373,690.00.



—18—

The transactions in the Government Teller's Division,
which embrace the redemption of Government coupons and
warrants and the handling of the Treasurer's account, have
been very heavy during the entire year. The number of
pieces handled by the Government Teller in Kansas City
aggregates approximately the same number of pieces as during 1919, but for an amount of $3,700,000 in excess of 1919.
Including the Omaha and Denver Branches, securities
handled by the Government Tellers were as follows:
No. of Pieces
Amount
Government Coupons
5,933,608 $ 22,415,427.82
Government Warrants
1,578,776
146,901,525.91
Checks, Internal Revenue Collectors
970,248
161,446,782.49
War Savings Stamps Redeemed 2,585,947
10,678,799.94
Totals
11,068,579 $341,442,536.16
From the above table it is noted that deposits of Internal
Revenue Collectors in the Tenth Federal Reserve District during the year aggregate $161,446,782.49.
The selling campaign for War Savings Securities was conducted by the Government Savings Organization. During the
year the activities of this organization included a campaign
among the postmasters, so that sales for the entire year are
not properly 1'eflected by the transactions conducted through
the Fiscal Agency Department, which show a large decrease.
Decrease in the aggregate sales of these securities, however,
may be partially accounted for at least by the issue of Government securities that have been offered during the year bearing shorter terms and higher rates of interest.
Bonds of various issues have been received from Federal
Treasurers for delivery to the Treasury Department for account
of the United States Railroad Administration, numbering
69,538 pieces, for an amount totaling .$6,138,300.
War Finance Corporation transactions throughout the year
aggregated $11,914,202.13, with 7,855 pieces involved. These
transactions consisted of the re-purchase and redemption of the
5% issue of War Finance Corporation Bonds and the redemption of Certificates of Indebtedness that had been purchased
and redeemed on behalf of the Corporation.
As stupendous as it may seem, the grand total of pieces
of valuable securities handled by the Fiscal Agency Department
during the year was 19,522,220, aggregating $2,532,977,328.61.
SUB-TREASURY FUNCTIONS

On December 18, the Secretary of the Treasury authorized
this bank to assume all of the functions of a sub-treasury, effective as of December 20. Under this authorization this bank is



—19—

•

' .

empowered to make exchanges, replacements of United States
paper currency, receive United States coin, including gold coin,
standard silver dollars, subsidiary silver and minor coinage,
and to make exchanges and replacements thereof under terms
and conditions outlined in detail by the Treasury Department;
to cash Government warrants and checks drawn on the Treasury
of the United States for disbursing officers, including the postmaster, provided satisfactory identification of the officer be
furnished, and that the cash is to be used for payroll and other
official purposes; to accept, receipt for and carry in custody
account such stocks, bonds, notes, securities or other evidences
of indebtedness as may, by direction of the Secretary, from time
to time, be deposited therewith by persons, firms and corporations, of officers or agents of the Government; to pay pension
and disbursing officers' checks; to solicit and receive subscriptions to all Government issues; to pay and cancel same on
presentation and surrender at maturity, and to do any and all
other acts heretofore performed by a Sub-Treasury of the
United States, except to macerate the currency unfit for circulation.
NOTE ISSUES
Federal Reserve Notes
The amount of Federal Reserve notes outstanding at the
end of 1920 shows an increase of $7,569,720, from the amount
outstanding at the end of 1919. The low tide of the year was
reached on June 1, at which time the amount outstanding had
been reduced to $102,236,530. The highest amount outstanding
was on December 23, when it stood at $119,756,275.
Detailed statements with reference to Federal Reserve
Notes, including the issuance, redemption and expense, are to
be found in schedules "L", "M" and "N" of this report.
Federal Reserve Bank Notes
On Jauuary 2, 1920, the outstanding Federal Reserve Bank
Notes amounted to $19,928,000 which amount was gradually
decreased until December 31, at which time the total outstanding was $14,854,600.
MOVEMENT OF MEMBERSHIP
During the past year there was a net increase of 51 member banks in this district, 36 of which were National Banks
and 15 were State Banks and Trust Companies. This makes
the total membership in this district 1,087, of which 669 are
served by the parent bank, 260 by the Omaha Branch, and 158
by the Denver Branch. Of the total membership, 1,024 are
National Banks and 63 are State Banks and Trust Companies.
The Tradesmens State Bank of Oklahoma City and the
Denver Stockyards Bank of Denver, withdrew their memberships on account of conversions to National Banks, and 17 banks



—20—

were admitted to the system, making a net gain in membership
of State Banks and Trust Companies of 15 for the year, which
includes the Midwest Reserve Trust Company of Kansas City,
a consolidation of the Midwest National Bank and the National
Reserve Bank. A list of these new members is given in schedule
"P", from which it is noted that 9 of the additions are Oklahoma banks, no doubt due to the establishment of a branch at
Oklahoma City. Two withdrawals were caused through the
failure on November 29, 1920, of the Farmers National Bank
of Sterling, Colorado, and the failure of the First National
Bank of Morris, Oklahoma on December 14, 1920. The First
National Bank, Picher, Oklahoma, which suspended business on
November 17, 1919, was reorganized as the Picher National
Bank, which bank also failed on July 10, 1920. but not having
qualified as a member, it was not considered among the withdrawals from the system.
Additions and withdrawals from membership are given
in schedule "I" by states.
As a result of the net increase in the number of member
banks, and due to additional applications for stock by banks
whose capital and surplus had been increased, the capital
stock of this bank was increased during the year from $4,015,550 to $4,454,950.
FIDUCIARY POWERS

Under the Phelan amendment of the Federal Reserve Act
approved September 26, 1918, considerable interest was manifested by National Banks in this district regarding the exercise
of fiduciary powers. Under this amendment and prior to 1920,
54 National Banks were granted permission to exercise the
powers applied for, and during the past year the Federal Reserve Board approved applications from 36 National Banks,
which in most instances carried all of the powers authorized by
the act. Schedule "Q" contains a complete list of banks which
have obtained authority during the past year under this new
act.
POWER TO ACCEPT UP TO 100 PER CENT

Five additions were made to the list of banks authorized
by the Federal Reserve Board to accept drafts or bills of exchange to 100 per cent of the capital and surplus. The following banks now possess this power:
Name of Bank
First National Bank, St. Joseph, Mo.
First National Bank, Hutchinson, Kan.
First National Bank, Kansas City, Mo.
Commerce Trust Company, Kansas City, Mo.
National Bank of Commerce, Kansas City, Mo.
Lawrence National Bank, Lawrence, Kan.
Continental National Bank, Kansas City, Mo.
Denver National Bank, Denver, Colo.
Fidelity National Bank & Tr. Co., Kansas City, Mo.
Security National Bank, Oklahoma City, Okla.



—21—

Date Application
Granted
August 27, 1915
December 19, 1917
June 24, 1919
August 19, 1919
September 8, 1919
March 2, 1920
March 2, 1920
April 30, 1920
April 30, 1920
November 9, 1920

ELECTION OF DIRECTORS

To fill the vacancies caused by the expiration on December
31, 1920, of the terms of C. E. Burnham and H. W. Gibson, as
directors of Class A and Class B, respectively, an election was
held November 6 to December 1, inclusive, in which only banks
of group 3 participated. Mr. C. E. Burnham, being an officer
and director of a bank in group 2, was ineligible for re-election
as a representative of banks in group 3. The only candidates
nominated were E. E. Mullaney of Hill City, Kansas, for Class
A director, and H. W. Gibson, of Muskogee, Oklahoma, to succeed himself as Class B director. Each received a total of 171
votes and were duly declared elected for a term of three years,
beginning January 1, 1921.
Asa E. Ramsay, Class C director and Chairman of the
Board of the Federal Reserve Bank of Kansas City since
January 1, 1918, was re-appointed a Class C director by the
Federal Reserve Board for a term of three years ending December 31, 1923, and was redesignated Chairman and Federal Reserve Agent for 1921. Fred W. Fleming was redesignated
Deputy Chairman for the year 1921.
INTERNAL ORGANIZATION
Personnel

In the official staff changes were made during the year
as follows: C. A. Worthington, Assistant to Governor, was
elected Deputy Governor, effective January 1, 1920. J. W.
Helm, Acting Cashier, was elected Cashier, effective the same
date. L. H. Earhart, Assistant Cashier, was elected Manager
and Director of the Omaha Branch to succeed 0. T. Eastman,
resigned. C. E. Daniel, Assistant Cashier, was elected Manager
and Director of the Oklahoma City Branch. Arthur M.
McAdams, formerly employed as Assistant Manager of the
Fiscal Agency Department, was elected Assistant Cashier.
George H. Pipkin, formerly Manager of the Discount Department, was elected Assistant Cashier. The names of the official
staff at the close of the year are given on the first page of this
report.
The total number of employees at the close of the year
was 864, of whom 548 are at the head office in Kansas City,
including the Fiscal Agency Department; 137 at the Omaha
Branch; 82 at the Denver Branch; and 97 at the Oklahoma
City Branch.
Officers' Meetings
The practice of holding daily officers' conferences for the
purpose of discussing points of interest, which was inaugurated
in 1918, has been continued with satisfactory results, and on
account of the increased volume of business and multiplied
responsibilities it is felt that the harmonious operation of the



—22—

many departments has been greatly facilitated through such
conferences. Unusual conditions surrounding relations with
banks in this district, both member and non-member, have required constant watchfulness on the part of the management
of this bank, and the fact that three National Banks and several State Banks have closed during the year without loss of a
single dollar to the Federal Reserve Bank is at least partially
due to close co-operation of the official staff.
AUDITING DEPARTMENT

This department, which embraces sub-departments at the
Fiscal Agency and each of the Branches, on December 31 employed 49 persons, as against 33 on January 1.
The organization plan of the department embodies a division of the clerks into two main heads; namely, those engaged
in current supervision, physical controls and continuous audits,
and those whose duty it is to make departmental audits and
monthly proofs. The latter feature was added in August, in
a limited way, at the Fiscal Agency.
The present purpose is to maintain in the head office and
at each branch a physical control of Reserve Cash, Federal
Reserve Agent's cash, and securities owned, with record controls of securities held as collateral and for safe-keeping. Substantially the same policy applies at the Fiscal Agency, except
that the property controlled consists of United States Bonds,
Certificates of Indebetedness and War Savings Stamps.
Continuous audits have been arranged and detail check is
made of all items of income and expense, all discount operations, currency and security shipments, Gold Settlement Fund,
Bank Premises Account, Gold with Federal Reserve Agent, both
Redemption Funds carried by the bank, capital stock subscriptions, and, in fact, any other account whose nature will admit
of such an audit.
Current reports relating to operations, including statistical reports made to the Federal Reserve Board and to the
Board of Directors, are checked, as well as the regular weekly
statements to the Federal Reserve Board reporting the financial condition of the bank for general publication.
Department audits, which embrace outstanding cash letters, collections handled, bills discounted and unearned discount, collateral held, and the major divisions of the Fiscal
Agency, are made quarterly, or as nearly so as possible. The
current supervisory work of each Branch Auditor is supplemented by a complete balance sheet audit, also made quarterly by the head office force; seven such audits have been
made during the year. The department as a whole, which
includes the Branch Auditors, has made 122 departmental
audits and 609 monthly proofs.



—23—

In October, a meeting of Branch Auditors and Local Department Managers was held at the head office, at which
steps were taken to apply the decisions reached at the General Auditors' Conference, which was held in September in
Chicago.
Internally, the several sub-departments have been more
closely co-ordinated, their work standardized and, to a greater
extent, systematized. Certain operating functions previously
exercised have been relinquished to the proper operating departments, and while no attempt has been made to establish
the line of demarcation between Auditing and Operating matters, the volume of the latter class which is now handled has
been reduced to a negligible minimum.
Cordial relations and close co-operation have existed
during the year with the several operating departments of the
bank.
EXAMINATION DEPARTMENT.

The Examination Department of this bank was organized
on March 1, 1920, with Mr.'M. F. Cockrell in charge as Manager. This department has immediate supervision of all examinations of state bank members, applications of state banks
for membership, reports of condition and reports of earnings
and dividends of all state bank members. It also makes examinations of national bank members when occasion demands.
On September 15 an additional examiner was added and the
work of the department has developed to that point where it
calls for the appointment of another examiner at this time.
As far as practicable, it will be the purpose of our Examination Department to make examinations of State Bank
members jointly with the state authorities, but our experience
during the past year indicates that this cannot be done in all
cases, as it is frequently not convenient for the State Department to make examinations at a time when we feel obliged to
do so to protect our own interest. It is the intention of this
department in the future to make independent examinations of
all state banks applying for membership, which it has been impracticable to do in the past, making it necessary for us to act
upon the reports of examinations by state banking departments
when admitting state banks to membership. This department,
since its organization, has made 44 examinations, as follows:
4 State Banks for admission independently
1 State Bank for admission jointly with State
Authorities
3 State Bank members independently
33 State Banks jointly with State Authorities
3 National Banks independently
CREDIT DEPARTMENT

During 1920, this department has been placed upon a more
satisfactory basis, and its operation has been of invaluable



—24—

assistance to the Executive Committee in determining the
eligibility and desirability of the increased volume of rediscount offerings from member banks. A campaign for the better
preparation of financial statements of borrowers, which was
inaugurated in the latter part of 1919, was continued throughout 1920 with very satisfactory and gratifying results. As the
year progressed the requirements governing the preparation of
financial statements and the furnishing of complete information were closely followed by a majority of the member banks
and larger borrowers, and greater efforts were made to furnish
such information as is necessary to enable the Executive Committee to determine the desirability of paper offered.
Many members who formerly viewed the efforts of the
Federal Reserve Bank in this connection as unwarranted interference with their credit methods, have now come to the realization that the campaign of education which has been conducted
has resulted in much benefit to themselves, their credit files
being in better condition than ever before. Even such banks
as formerly looked upon the requirement of a financial statement as an insult to their customers, have, in several instances,
expressed a reversal of the opinion formerly held and now show
their entire willingness to co-operate.
On account of the present unsatisfactory conditions and
the enormous depreciation, in the value of many lines of merchandise, member banks and borrowers have been advised that
inventories should be taken at the current market values rather
than cost prices, whenever there has been a depreciation, and
that if inventories are for any reason taken at cost prices, the
market value must also be given for comparison. It is felt
that this suggestion will prove of much benefit to members,
some of whom have, in the past, hesitated to require such information from their borrowers.
On December 27, 1920, General Letter No. 284 was issued,
outlining the present requirements of the Federal Reserve Bank
of Kansas City in connection with the preparation of financial
statements. It is provided therein that statements which are
merely balance sheets or trial balances, which it has heretofore
been the custom of many borrowers to furnish, will not be
acceptable. The majority of our member banks are enthusiastically following the provisions of this General Letter.
CURRENCY DEPARTMENT

The year of 1920 has recorded a substantial increase in the
volume of money handled by the Currency Department. There
were, received from all sources 28,000,000 bills, amounting to
$200,000,000, an increase over the preceding year of 6,000,000
pieces, or $56,000,000.00. The number of bills shipped and
delivered totaled 41,000,000, amounting to $222,000,000.00, an
increase over 1919 of 12,000,000 pieces or $49,000,000.00.
In this connection, it is noted that the record month of
1919 was surpassed by the lowest month of 1920. On Decem


—25—

ber 29, the Receiving Teller passed all previous records for a
day's receipts, receiving 197,000 bills, for a total of $1,430,000.00.
Member banks are using more and more the privileges •
extended to them by the Federal Reserve Bank in connection
with currency transactions. Especially is this true of city
banks. There was shipped, however, to country banks during
1920, $60,000,000.00 and the receipts amounted to $42,000,000.00.
The cost of the transportation charges on such shipments,
amounting to $22,467.00, was absorbed by the Federal Reserve
Bank.
The standard maintained in the assorting of currency as
to "fit and unfit" and our policy of paying out new money only
when our supply of currency fit for circulation is exhausted,
conserved our reserve supply to such an extent that at no time
was it in danger of being depleted except as to $1.00 bills during September and October. In order to be able to supply
member banks with a few bills of this denomination at all
times, it became necessary to request member banks to accept
a portion of such orders in currency of the $2.00 denomation.
EDUCATIONAL AND RECREATIONAL
Federal Reserve Act Class
The Federal Reserve Act class of the Kansas City Chapter
of the American Institute of Banking, which was organized
in the fall of 1919, continued each week during the winter and
spring of 1920, under the management and instruction of the
officers of the Federal Reserve Bank of Kansas City. At the
close of 1919-1920 study, examination was held on April 28,
and cash prizes offered by the bank, aggregating $75.00, were
distributed to those passing the best eight grades. During the
latter part of September, 1920, a thorough and systematic
campaign was made for members by the organization committee of the local American Institute of Banking chapter, resulting in an enrollment of 935 members, an increase of 131%
over the previous year. Of this number, 313 are employees of
the Federal Reserve Bank.
In organizing for the second year's study of the Federal
Reserve Act, arrangements were made by the Kansas City
Chapter for the officers of the Federal Reserve Bank to again
take charge of the class and instruction. It was also announced
that the course of study was intended particularly for junior
officers and senior clerks, and that a highly practicable and a
most intensive study would be made of the purposes and operating functions of the Federal Reserve Bank. Arrangements
were made for the use of the lecture room of the Grand Avenue
Temple on Tuesday evenings, the class to begin at 6:30.
The attendance at the opening night, October 5, 1920, of
251 established a new record not only for the Federal Reserve
Act class, but was greatly in excess of the attendance of any
class of the local chapter. Thus far this year, 189 employees



—26—

of the Federal Reserve Bank have attended this class and 196
officers and employees from 44 other banks of Kansas City.
The average attendance for the first 13 weekly classes was 159.
In passing, it may be of interest to know that a large number of the students that were members of the first class are
again studying the Federal Reserve Act with this year's class.
A great deal more interest is shown this year during the class
meetings, and the students seem to be getting more real benefit
from the questions and lectures. The method of instruction of
last year, i. e., the assignment of a certain section for each
meeting, together with printed questions passed out one week
in advance, is being followed with even greater success than
last year.
It is planned to close this winter's study with a written
examination, those passing the best grades to be rewarded with
cash prizes to be given by the Federal Reserve Bank.
Choral Club.

The Federal Reserve Choral Club was organized September,
1919, with John R. Jones, Director of the Kansas City Community Chorus, in charge. Its membership from the time of
its organization to the period of summer vacations during 1920,
ranged from 60 to 75.
Two rehearsals a week, held on Tuesdays and Fridays from
8:30 to 9:30 in the morning, were granted by the bank. This
work has proven beneficial and conducive to a better spirit
among the employees.
In conjunction with five other choral associations, under
the direction of Mr. Jones, our club, on February 5, May 24 and
25, appeared in public concerts, given at Convention Hall. .
On May 18, our club gave its first annual concert at the
First Christian Church.
After the summer vacation, the club was reorganized with
a membership of approximately 200. Larger quarters were
necessary and the auditorium of the Theosophical Society, 920
Grand Avenue, was secured. Rehearsals continue to be held on
Tuesdays and Fridays of each week, the average attendance
being approximately 125 members.
The Federal Reserve Choral Club has announced a play
entitled "Greetings", at the Little Theatre on Troost Avenue,
for the entertainment of the directors, officers and employees
of this bank.
Athletics
A Bowling League is composed of 40 employees of the
Bank, divided into 8 teams of 5 members each. The tournament
games are played on Thursday evening of each week from 5:30



—27—

to 8 o'clock during the season, beginning in September and
ending in March. The teams are recruited from the various
departments of the bank, and the players have shown great
interest in this healthful sport.
During the season our Basket Ball Team was a member
of the Bankers' Basket Ball League, and while our team was
not very successful as to the number of games won, a great deal
of interest was created among the employees of the Transit
Department, of which it was chiefly composed.
During the summer we had a Baseball Club which was a
member of the Bankers' Baseball League. We found a number
of good players among our employees, but unfortunately our
pitching staff was not very strong, and as a consequence we
did not make a very good showing in the League. During the
season, about 30 employees, mostly from the Transit Department, engaged in this sport.
OPERATION OF BRANCHES

The operation of all branches is under direct control and
supervision of the head office, and the policies formulated by
the management of the Federal Reserve Bank of Kansas City
are closely followed at the branches.
During the year an additional branch was established at
Oklahoma City, opening for business on August 2, 1920. The
operations of this branch are limited to the clearing and collection of checks and the handling of shipments of currency to
and from member banks in that portion of Oklahoma located
within the Tenth District, being all but eight counties. The
Omaha and Denver Branches have direct relations with the
member banks in their respective territories in all current and
ordinary transactions, with the exception of membership and
fiscal agency operations and various applications to be approved
by the Federal Reserve Board and handled through the Federal
Reserve Agent. The volume of business transacted at the
branches at Omaha, Nebraska, and Denver, Colorado, has tremendously increased during the year, particularly at Omaha,
as is shown by the following separate reports.
Omaha Branch

•

The increased service rendered has been adequately reflected in the operation of the Omaha Branch. In all departments an increase of activity has taken place during 1920. The
Omaha zone comprises the entire states of Nebraska and
Wyoming, where the shrinkage in values, particularly agricultural products and live stock, has been pronounced. This
fact has caused heavy demands by member banks, especially
during the latter part of the year; the volume of loans, however, at the Omaha Branch at the close of 1920, shows a decrease of six millions compared with the figures at the close
of 1919.
. • -;
:



—28—

The volume of paper, secured by Government obligations,
has been gratifying in that its holdings of this class of paper
have decreased over ten million dollars, but against this reduction in Governments, there has been an increase of approximately four million dollars in loans of other classes.
The highest point which loans reached during the year
was $42,267,730.57, on November 6, which was also the greatest
amount of loans held by the branch since its establishment. The
least amount of loans held during the year was $28,243,019.87,
on February 11. The urgent demands for loans in the Omaha
zone kept the volume throughout the year in excess of 30 million
dollars, except during the months of February and March. A
total of 32,969 notes was discounted during the year, aggregating $382,597,955.72. There were rejected 5,768 notes, aggregating $25,609,576.81.
Out of a total membership of 260 banks, 227 received
accommodations. Of this number, 153 were at some time during
the year affected by the progressive rate.
The reserve balances reached their highest amount on
March 6, aggregating $24,880,875.27. From that time a
steady decline in the amount of reserve balances set in, the
lowest point, $12,671,679.38 being reached November 3. The
aggregate average balances maintained by members in the
Omaha zone was $16,702,309.00 as against the required average daily reserves of $16,287,075. Penalties aggregating
$60,765.58 were collected from 225 members for deficient
reserves.
The reserves of members in the Omaha zone were not
a sufficient basis upon which to issue Federal Reserve Notes
in the amount necessary to supply the demand of such members for loans, as a consequence of which the branch has
shown, throughout the year, heavy indebtedness to the parent
bank, the average amount being $18,574,306.81. The largest
debit against the branch for any one day was $28,373,365.74;
the smallest amount was $11,144,716.48.
The Transit Department handled 7,844,887 items, a daily
average of 24,329. In March the daily average handled was
26,354 items, but this average gradually decreased until, during December, the average was 25,506 items per day. On
October 13, 42,598 items were handled, this being the greatest number for any single day.
During the year the Collection Department handled
10,525 collections, aggregating $36,371,000.00; of this amount
9,242 items were collected, having an aggregate value of
$34,229,000.00.
The volume of currency handled during the year was
$17,083,000.00, of which the Omaha banks received $7,432,000.00. Subsidiary silver to the amount of $340,000.00 was
supplied to members. The total amount of currency received



—29—

from members during the year was $11,091,000.00, of which
$7,810,000.00 was deposited by Omaha banks. The branch
had currency transactions with 134 members; 2,764 currencyshipments were made and 2,191 shipments received.
On May 10, the Farnum Building, situated at the southeast corner of Farnum and Thirteenth Street, in Omaha, was
purchased as a permanent home for the Omaha Branch for
a consideration of $165,000.00. The building is of granite
base and brick superstructure, has five stories and basement,
contains 40,421 square feet of available floor space, of which
the branch had under lease 6,215 square feet, at the monthly
rental of $692.50. The purchase of the building afforded
the opportunity of taking over additional space greatly needed
to accommodate the increased number of employees. We are
now using 15,282 square feet, covering certain parts of the
basement, first and second floors, while all of the third, fourth
and fifth floors are leased to tenants at a net revenue of
$10,200.00 per annum.
During February, our former Manager, Mr. O. T. Eastman, resigned to accept an official position with a commercial banking institution. Mr. L. H. Earhart, Assistant Cashier
of the head office, was elected manager of the branch and
immediately assumed his duties.
During the month of April, our former Cashier, Mr. E. D.
McAllister, resigned to form a commercial banking connection. Mr. P. R. Fredman, at that time Cashier of our Denver
Branch, was elected Cashier of the Omaha Branch, and immediately assumed the duties of that position.
In May, Mr. G. A. Gregory, Acting Assistant Cashier, was
made Assistant Cashier, and in June, Mr. W. D. Lower was
appointed Assistant Cashier.
Denver Branch
The year 1920 has been an active one at the Denver
Branch and has shown a large increase in the volume of business transacted.
Many members which had not previously used the discount facilities of the branch received accommodations during
the year just closed, 126 of the 158 members having had discount transactions as compared with 86 out of the 145 in the
year 1919. The branch discounted 15,331 notes, having a
total value of $232,615,992.40, while 2,868 notes, having a
value of $7,700,497.38 were rejected. Beginning the year
with $11,436,380.03, the loans increased by January 22 to
$14,789,987.93, due to the demand incidental to the cattle
and sheep feeding industry. As this stock began to move to
market, a gradual decline in the _ loan account was shown
until April 12, when the loans reached the minimum of the
year, $4,438,498.85. Shortly thereafter, the demand of the
farmers for crop raising again started the account upward, a



—30—

fairly gradual increase being noticed until October 2, when
the maximum for the year was reached, $18,793,081.68.
The funds paid to the farmers for the sugar beet crop
and for such wheat as was sold caused a liquidation in discounts which, on November 24, had been reduced to $10,805,356.26. The demand, due to the feeding season, again started
the account upward, and on December 31 the branch was carrying loans aggregating $13,258,647.74.
The decline of deposits having been more rapid than the
reduction of loans made it difficult for member banks to maintain their required reserves, and resulted in an increased number of penalties. During the year, 110 banks were penalized
for deficient reserves, as compared with 74 in 1919. In this
connection, it should be kept in mind that in 1920, penalties
were assessed for weekly periods for reserve city banks and
semi-monthly periods for other banks, while in 1919, all were
on a monthly basis.
Other facilities of the branch have also been used more
freely during the year. During 1920, currency receipts from
member banks amounted to $32,696,000.00, as compared with
$23,725,000.00 for 1919, and currency shipments to member
banks were $23,781,000.00, as compared with $14,048,000.00
for 1919.
The number of items handled by our Transit Department has shown a gradual increase. During the month of December, 1919, the daily average was 17,957 items, while during the same month of 1920, the daily average was 21,293,
the record month of the year. The largest number handled
in any one day was on March 15, when there were 37,502 items,
amounting to $8,231,372.47. The clearings of checks on Denver Banks, for the year, amounted to $766,677,648.00, as compared with $481,477,676.14 in 1919.
The Government Division at the branch has handled 198,318 United States Treasury Warrants, amounting to $29,166,512.14; 870,047 coupons from Liberty Loan Bonds and Victory Notes, and 497,425 War Savings Stamps, aggregating $2,181,163.74. It has received deposits from the Collector of Internal Revenue, containing 130,646 items and aggregating $37,273,337.17.
The collection department has shown a large increase in
items handled. During the year, 8,244 collections were received, aggregating $22,403,891.05. Of these, 680 were returned unpaid, while 7,416 involving the sum of $19,813,634.05
were collected.
The increased volume of business handled by the various
departments has necessitated continued increase in the number
of employees. At the close of business December 31, 1920, the
employees of the branch numbered 82, as compared with 56 at
the close of 1919.



—31—

On May 15, Mr. P. R. Fredman, Cashier of the Branch, was
transferred to the Omaha Branch. On May 27, Mr. Jos. E.
Olson was appointed Cashier to succeed him and at the same
time, Mr. A. J. Conway was appointed Assistant Cashier. On
June 17, Mr. Olson was elected Secretary of the Board.
Oklahoma City Branch
Mention was made in the last Annual Report of the order
of the Federal Reserve Board, dated December 17, 1919, requiring this bank to establish a branch office at Oklahoma
City, particularly to expedite shipments of currency to and
from member banks in the state of Oklahoma and to provide
better facilities for intra-state clearing of checks, the Board reserving the right to discontinue the branch at any time if its
operations should be found unsatisfactory. The branch was not
authorized to carry deposit accounts, and any deposits received
by it from member banks were to be transmitted daily by wire
or otherwise to the head office for the credit of the accounts
of the depositing banks. The authorization of the Board provided that the banks which could not advantageously transact
their business with Oklahoma City, particularly those in the
eastern part of Oklahoma, might continue to send their items
to the head office. The branch was authorized to receive notes,
bills and drafts offered by members for rediscount, but the
actual transactions were to be passed upon and final decision
of such applications to be determined at the head office.
Under this authorization a contract was entered into for
the second story of the Continental Building, Second and Broadway, which building was then under reconstruction, the completion of which was contemplated not later than April 15. Scarcity of material and labor strikes delayed work on the building,
and the space was not finished for occupancy until August 2,
on which date the branch was opened for business with C. E.
Daniel, formerly Assistant Cashier of the parent bank, as Manager, and R. 0. Wunderlich, Cashier, and 48 employees.
The volume of business handled by the branch at the beginning was in excess of that anticipated, and it was found
necessary to immediately increase the force and to purchase
additional equipment. Due to the fact that practically the entire force was inexperienced, it was necessary to employ a
larger number than would ordinarily be required to handle the
same volume of business. The number of employees gradually
increased to 105, as of October 25. As the help became more
experienced, we were enabled to handle about the same volume
of business with the number of employees in the Transit Department reduced to 89, as of December 31.
The smallest number of items passing through our Transit
Department at Oklahoma City was on the opening day when
15,588 items, having a total value of $1,570,595.02, were handled. The record day was September 20, with a total of 69,588
items aggregating $12,166,640.01. From the date of opening



—32—

to December 31, 4,628,271 items, having a total value of $982,458,801.00 passed through the Transit Department.
The opening of the Currency Department of the Oklahoma City Branch was delayed until December 1, on account
of the failure of the contractors to deliver the steel chests which
they had agreed to furnish by July 1. That department, during
the month of December, handled 314,000 bills, having a value
of $2,029,975.00, the average number of bills handled each business day being 12,560, with an average value of $67,665.00.
MISCELLANEOUS.
The increased activities during the year made it necessary
to enlarge our Credit and Analysis Departments.
With the Adjustment Department as a nucleus, it is proposed to install at an early date a strictly Statistical Department to compile and maintain currently statistics and analysis
relating to practically every phase of the operation of the bank.
A Library Department has been installed with a trained
Librarian in charge. This department will have custody of all
general letters of the Board, official correspondence between
the officers and the Board, financial periodicals, library books,
and such other matter as should be properly filed within it.
On March 1, the employees of this bank organized a cooperative association under the title name of "The Glendale
Mercantile Company, unincorporated," for the purpose of furnishing, at the actual cost, merchandise, particularly groceries,
to those employees desiring to participate in the plan. The
capital stock of the company was subscribed by 281 employees.
The store is operated very successfully at a considerable saving
for those making purchases.
Especially constructed trucks have been purchased for the
Omaha Branch and the head office to facilitate transportation
and to give better protection to our money and security shipments.
Since the beginning of 1918, at its own expense, the bank
has carried a policy of group insurance, covering the lives of
its employees in an amount equal to one year's salary. The
bank, being the beneficiary under this policy may, at its discretion, appropriate the proceeds of the death claims as it may
see fit. It frequently happens that other than the technically
legal heirs of a deceased employee are more justly entitled to
the benefits. During the time this policy has been in force, we
have had four deaths in our organization, as follows:
Hugo T. Johnson, Omaha Branch, insured for $1,020.00,
one-half of which amount was turned over to his mother and
one-half to his father on February 20, 1920.
Anna Eisenberg died February 6, 1920, insured for $960.00;
this amount having been paid to Mrs. Bessie Eisenberg, mother,
and Miss Rose Eisenberg, sister.



A. D. Fairley died February 8, 1920, insured for $2,000.00,
which was paid to Mrs. Leila Fairley, his wife, on May 28,
1920.
Ercel Wilkerson died August 25, 1920, insured for $1,260.00. This money, under the supervision of the officers of
the Federal Reserve Bank, was invested in the house and lot occupied by the mother of the deceased, and a deed conveying the
property to her, free and clear of any incumbrance, was delivered to her.
During the year 50 general letters were issued, numbered
from 236 to 285, both inclusive. Five of these letters were concerning rates of discount; one, Time and Demand Deposits;
three, regarding Progressive Discount Rate; three, Oklahoma
City Branch; two, money shipments; one, financial statement;
one, Penalty for Deficient Reserves; and thirty-four, regarding
Fiscal Agency matters.
NEW BANK BUILDING.

The new building of the Federal Reserve Bank of Kansas
City now in course of construction at the corner of Grand Avenue and Tenth Street, occupies a lot 145 ft. x 115 ft. and rises
to a total height from sidewalk to parapet of 300 feet 9 inches.
The building actually contains sixteen complete working stories
above the sidewalk line, all of which in the interest of light
and ventilation have been made greater in height than the
average office building story with the result that the building is actually the equivalent of a full twenty-two story building and overtopping by many feet the highest building thus far
constructed in Kansas City. The building in its exterior character is severely formal and plain, depending for its effect upon
massiveness of outline and simplicity of surface treatment, with
careful avoidance of unnecessary ornament. In view of the fact
that the building is in a sense a public institution, representing
the public interest of the entire Federal Reserve District, it is
felt that the building should primarily produce an effect of simplicity and dignity. The architectural elements may be said to
be classic, being inspired from the best examples of the Greek
and Roman architecture, sufficiently modified to be thoroughly
adapted to modern requirements. The principal feature of the
lower stories is a colonnade of free standing Doric columns supporting an entablature which is in turn crowned by an Attic
treatment two stories in height. These exterior columns are
41 feet in height with a diameter of 5 feet 4 inches and are of
great massiveness of effect. The general effect of the entire
exterior will be that of a field of windows grouped two by two
surrounded by a heavy stone frame and tied together across the
top by a sloping pediment, forming an effect of strength and
solidity. It is believed that this feature, which was made possible by the open character of the internal plan, is a very unusual one among buildings of office type. The three upper
stories beneath the pediment form a decorative- feature outlined by pilasters with a Greek capital in harmony with the



-

—34—

main columns of the lower stories. The material of the exterior is Bedford stone throughout except for the alley and light
court on the back. A feature of special interest and which will
appear to great advantage, due to the handsome and durable
character of the material, is the decorative panel at each end
of the Grand Avenue front. These panels carry the seal and
eagle, symbolizing the power of a Governmental institution, and
support figures with upraised arms typifying the Spirit of
Commerce and the Spirit of Industry, these two main ideas
being represented by appropriate symbols. The architectural
treatment as above described, including the decorative panels,
was chosen with a view to producing in this building an effect
such that the passerby, including the youngest school boy, would
realize in viewing the building that here stands a building representing some thing greater and more important than an ordinary commercial institution.
On entering the main entrance oh Grand Avenue the spectator finds himself in a public lobby 32x110 feet around which
are grouped all the various detailed activities and the principal
officials dealing directly with the public. To the right are the
offices of the Governor and the Deputy Governor; to the left
the offices of the Chairman and Federal Reserve Agent, and
the Assistant Federal Reserve Agent. One feature of the arrangement, which it is believed will greatly expedite the business of the institution, is the arrangement of an open counter
in front of the private offices, permitting the officers to
transact business either in the open next to the public counter or
in private conference. The main hall, of which the public lobby
forms the center, will be a notable feature among bank rooms
of this country. The principal aim in its design was not the
creation of an overpowering architectural effect, but rather
the achievement of a banking room which would be open,
spacious, well day-lighted and Well ventilated. This main room,
73 feet in width by 132 feet in length, rises to a height of 38
feet and is divided into a central space and two side spaces by
a double row of Doric columns lighter in treatment, but of
the same general character as the columns of the exterior.
Around the hall over the officers' rooms and working spaces is
a balcony, averaging 16 feet in width, which will be used as
working space, and which comes directly beneath the 17 great
windows which light this fine hall. Travelers who have visited
the great colonnaded hall of the Temple of Karnak in Egypt
will understand at once the general effect and impressiveness
of this arrangement.
One of the principal features of the institution will
naturally be the security vaults. Without publishing the details of these valuts, it can be said that they are of a size and
capacity far beyond anything thus far constructed in the Middle
West and will be surrounded with protective features the equal
of anything thus far constructed and fully in accord with the
importance of the securities which they are to house.



—35—

The upper stories of the building consist primarily of great
open work rooms, each room covering the entire area of the lot,
except for the light court on the ally side and except for a few
offices for the managers in charge of the different departments. The elevator equipment, consisting of ten elevators, is
intended to give the swiftest and most convenient means of
transportation to all parts of the building.
The one feature which has had the most thought given to
it from the beginning is the establishment of the best possible
working conditions for the large staff which will occupy this
building. Unusually high ceilings, unusually ample daylight,
together with the most modern devices for artificial ventilation,
are provided in the interest of a complete workshop fully up
to the most modern sanitary requirements. The welfare features have been equally well taken care of, including rest rooms,
gymnasium, roof playground. The high stone parapet appearing on the exterior is an-expression of the gymnasium which
forms a room 30 feet in height and which opens toward the
rear on the roof playground.
The reproach, so frequently and justly levelled at managers
of our big institutions in the past, has been that they have failed
to foresee the future by preparing for an adequate expansion
to meet the country's growth. In the case of the Federal Reserve Bank of Kansas City, it may safely be said that the building now under way is an unusual example of business foresight.
The arrangement of the entrance and elevator lobbies and the
layout of the upper stories of the building are based upon the
renting of space to certain selected tenants as a temporary
measure, thus permitting the bank officials at all times to have
at their disposal suitable space for the expansion of the various
departments as fast as circumstances require. It applies not
only to the upper stories of the building, but applies equally to
the main banking room which is so designed as to permit flooring over all the main balcony, thereby developing the bank area
accessible to the public. Similar arrangements make possible
the vault facilities in the basement.
On account of the fact that the solid rock comes close to
the surface, the expensive deep basements frequently found in
large buildings of office building type have in this case been
omitted and have been replaced by a storage floor placed immediately above the main banking room where it incidentally
serves to permit a handsome exterior treatment in the way of
a massive entablature without loss of needed daylight.




36—

FEDERAL RESERVE BANK OF KANSAS CITY.
Movement of Earning Assets During the Calendar Year 1920.
(Amounts in Thousands of Dollars)
PURCHASED BILLS

DISCOUNTED BILLS

Date

Total
Earning
Total
Held

Jan.
Jan.
Jan.
Jan.

2
9
16
23

Jan.
Feb.
Feb.
Feb.
Feb.

30
6
13
20
27

$131,59
130,07
135,41
126,03

Rediscounted
with
other
F. R.
Banks

Discounted for Member
Banks in this District
B
Total

Purchased i
Open
Secured
by Gov't Percent Market
war obli- B -H A
gations

S 88,176 $ 16,209 $104,385 $ 55,953
89,164
49,204
11,850 101,01
91,750
96,75
38,26.
5,000
91,81'
95,56
37,582
3,750

53.6
48.7
39.5
39.3

$9,481
8,947
8,977
8,534

Purchased
from
other
F. R.
Banks

Total
Held

U.S.
Securities

$8,086
6,264
5,036

SI 7,567
15,211
14,013
9,524

$25,854
25.700
29,648
24,694

120,04?
121,23'
126,852
136,095
130,26

87,94
87,885
86,964 —5,000
100,50
—9,950
98,568 —5,000

87,94
87,885
81,96
90,55
93,566

32,806
30,74
27,63'
35,888
32,762

37.3
35.0
33.7
39.6
35.0

7,910
7,246
6,801
5,265
1,787

5,050
5,050
5,050

7,910
7,246
11,851
10,315
6,837

24,191
26,108
28,037
25,279
24,855

132,805
130,128
129,775
128,945
134,482

102,44
—1,470
100,988 ^ , 3 0 0
102,599 —3,685
104,542
111,360

97,97
96,688
98,914
104,542
111,360

35,74
35,479
33,062
34,019
39,413

36.5
36.7
33.4
32.5
35.4

500
650
700
780
882

5,050
3,726
2,617
1,871
447

5,550
4,376
3,317
2,651
1,329

24,808
24,764
23,859
21,752
21,793

Apr. 9
Apr. 16
Apr. 23
Apr. 30
May 7

132,369
130,914
130,748
133,073
132,613

108,772
108,228
108,072
110,625
110,319

108,772
114,228
119,872
126,496
125,319

33,323
38,658
40,855
42,407
43,244

30.6
33.8
34.1
33 5
34 5

432
461
461
461
361

447

6,000
11,800
15,871
15,000

879
461
461
461
361

22,718
22,225
22,215
21,987
21,933

May 14..
May 21..
May 28..
June 4 . .
June 1 1 . .

134,421
133,630
135,139
129,981
131,202

112,118
110,808
111,970
106,737
107,664

7,000
14,248
13,865
15,43(
9,779

119,118
125,056
125,835
122,167
117,443

45,681
47,370
46,748
47,076
42,970

38.3
37.9
37.1
38.5
36.6

361
920
1,309
1,396
1,696

361
920
1,309
1,396
1,696

21,942
21,902
21,860
21,848
21,842

June 18
June 25
July 2
July 9
July 16

134,561 110,500
134,186 110,138
134,507 110,415
134,105 109,682
130,86' 106,384

11,144
12,958
15,936
12,767
19,493

121,644
123,096
126,351
122,449
125,877

43,953
46,245
47,376
47,092
47,577

36.1
37.6
37.5
38.5
37.8

1,989
2,102
2,379
2,616
2,736

1,989
2,102
2,379
2,616
2,736

22,072
21,946
21,713
21,807
21,747

July 23....
July 3 0 . . .
Aug. 6....
Aug. 13....
Aug. 20

133,500 108,678
133,966 109,199
134,902 109,276
123,413
97,695
135,322 109,608

18,861
22,902
25,756
23,534
17,640

127,539
132,101
135,032
121,229
127,248

46,861
48,62'
51,819
45,831
47,499

36.7
36.8
38.4
37.8
37.3

3,070
3,016
3,916
4,005
4,016

3,070
3,016
3,916
4,005
4,016

21,752
21,751
21,710
21,713
21,698

Aug. 27....
Sept. 3...
Sept. 10...
Sept. 17...
Sept. 24. ..
Oct. 1....

135,381
135,424
134,489
139,886
135,000
132,332

109,704
110,220
109,094
114,277
109,785
107,104

22,247
21,018
22,842
26,729
41,175
41,986

131,951
131,238
131,936
141,006
150,960
149,090

50,412
48,592
49,038
50,240
53,849
50,101

38.2
37.0
37.2
35.6
35.7
33.6

3,984
3,510
3,701
3,874
3,521
3,534

3,984
3,510
3,701
3,874
3,521
3,534

21,693
21,694
21,693
21,735
21,694
21,694

Oct. 8
Oct. 15
Oct. 22
Oct. 29
Nov. 5

134,647
130,899
134,653
139,786
143,203

109,793
106,727
110,687
115,777
119,194

40,166
43,063
45,784
44,895
41,878

149,959
149,790
156,471
160,672
161,072

51,242
48,667
46,567
49,436
48,971

34.2
32.5
29.8
30.8
30.4

3,160
2,478
2,272
2,313
2,316

3,160
2,478
2 272
2,313
2,316

21694
21 694
21,694
21,696
21,693

Nov. 12
Nov. 19
Nov. 26...
Dec. 3
Dec. 10

136,536 112,508
139,346 115,318
137,171 113,664
135,938 112,598
137,442 113,818

40,503
29,969
28,464
32,030
28,265

153,011
145,287
142,128
144,628
142,083

48,020
43,606
44,684
46,191
44,807

31.4
30.0
31.4
31.9
31.5

2,335
2,335
1,818
1,651
1,935

2,335
2,334
1,818
1,651
1,935

21,693
21,694
21,689
21,689
21,689

Dec. 17
Dec. 23
Dec. 30

139,025
138,026
134,799

115,535
114,434
111,094

27,764
31,000
29,086

143,299
145,434
140,180

44,396
45,203
43,897

31.0
31.1
31.3

1,741
1,904
2,017

1,741
1,904
2,017

21,749
21,688
21.688

Mar.
Mar.
Mar.
Mar.
Apr.

5.
12.
19.
26.
2

—Minus sign indicates paper discounted for other Federal Reserve Banks.
Adjusted percentages are calculated after increasing or reducing reserves held by the aimount of afcommodation extended to or received from other Federal Reserve Banks.




—37—

FEDERAL RESERVE BANK OF KANSAS CITY
MOVEMENT OF EARN ING ASSETS
DURING 1920.

UNITED STATES

SECURITIES
\2S

25

PURCHASED BILLS HELD

m
so

CO

60

60

so

40

~\,—

40

• •

20

20
0

PERCENTAGE OF WAR PAPER TO TOTAL DISCOUNTS FORBAIiKS IN DISTRICT.
IPS

IPS

ISO

SO
2S
0
DISCOUNTED BILLS. (SEE NOTE BELOW
IPS

175

TOTAL EARNING ASSETS
JAN\FEB. MAR.APR.MAYJUNE\JULY\AU6.SEPT\OCT.\NOV\DEC.

B

.-Sitfierjecared by 6onnwvcnbJl&r Obligations discctaited /vrJSanJcs in. District.
J f c l ? d $ 2 ) i s t r u £ .
C.ttal£>iscotw/al$i/u!r/i£ld>.
- where above Cute^B-Xtjverdiscoantedibr,




3 ^ ^

FEDERAL RESERVE BANK OF KANSAS CITY.
Movement of Net Deposit Liability, Federal Reserve Note Circulation, Cash
Reserves and Reserve Ratios During the Calendar Year 1920.
(Amounts in Thousands of Dollars)
Reserve
Total
Cash
Reserves

Net
Deposits

Percentages

Actual

DATE

Adjusted'

F. R. Notes
in
Circulation

Jan.
Jan.
Jin.
Jan.

2....
9
16
23....

S 81,696
74,501
76,561
86,019

; 81,175
73,834
81,901
82,697

$103,680
102,214
101,485
100,728

44.2
42.3
41.7
46.9

39.8
39.1
41 8
45 4

Jan.
Feb.
Feb.
Feb.
Feb.

30
6....
13....
20....
27....

00,010
96,130
87,427
81,096
89,922

81,831
88,761
85,296
87,157
89,295

99,565
100,259
100,539
101,563
102,214

4(1.6
50.9
47.0
43.0
47.0

49.6
50.9
52.5
50.9
52.2

Mar.
Mar.
Mar.
Mar.
Apr.

5...
12...
19. . .
26...
2....

87,816
83,528
80,854
83,532
77,317

89,061
82,586
80,028
82,934
82,341

103,190
102,784
102,731
101,613
101,407

45.7
45.1
44.2
45.3
42.1

50.6
49.4
47.7
46.3
42.3

Apr. 9 . . . .
Apr. 1 6 . . . .
Apr. 2 3 . . . .
Apr. 30
May 7

77,659
72,199
74,706
75,834
78,735

80,557
75,043
78,923
83,339

101,846
100,561
99,593
98,850
98,703

42.6
41.1
41.8
41.6
42.7

42.8
37.7
35.2
32.9
34.5

May
May
May
June
June

14...
21....
28....
4
11

75,088
77,082
74,383
75,977
72,652

84,478
85,909
84,986
79,494
78,444

98,375
98,036
97,572
99,089
97,913

41.1
41.9
40.7
42.5
41.2

37.2
34.2
33.1
33.9
35.7

May
June
July
July
July

18...
25. . .
2....
9....
16....

71,599
74,317
74,340
74,356
74,522

80,209
83,346
83,177
82,309
78,728

98,364
97,622
98,102
98,651
99,190

40.1
41.1
41.0
41.1
41.9

33.8
33.9
32.2
34.0
30.9

July 23....
July 30....
Aug. 6...
Aug. 13....
Aug. 20....

71,797
70,089
75,518
77,272
72,689

78,158
77,460
81,643
70,634
76,297

99,621
98,887
100,454
101,832
103,655

40.4
39.7
41.5
44.8
JO.4

29.8
20.8
27.3
31.2
30.6

Aug
Sept. 3...
Sept. 10...
Sept. 17...
Sept. 24...
Oct. 1....

73,230
74,903
72,693
80,010
74,362
76,856

76,213
76,247
71,675
83,967
72,477
71,026

103,780
105,151
106,508
106,711
107,621
108,823

40.7
41.3
40.8
42.0
41.3
42.7

28.3
29.7
28.0
27.9
18.4
19.4

Oct. 8 . . . .
Oct. 1 5 . . .
Oct. 22 . . .
Oct. 2 9 . . . .
Nov. 5 . . .

73,217
77,685
77,669
74,235
73,798

67,774
67,650
71,227
72,528
76,288

110,566
111,394
111,456
111,575
110,750

41.1
43.4
42.5
40.3
39.5

18.5
19.3
17.4
15.9
17.1

Nov.
Nov.
Nov.
Dec.
Dec.

12...
19...
26...
3....
10....

70,854
75,889
72,201
76,481
75,279

68,321
76,122
71,207
74,643
74,143

109,161
109,329
108,336
108,002
108,856

39.9
40.9
40.2
41.9
41.1

17.1
24.8
24.4
24.3
25.7

Dec. 1 7 . . . .
Dec. 2 3 . . . .
Dec. 3 0 . . . .

77,825
71,495
74,274

76,551
66,307
67,583

110,768
113,553
111,874

41.5
39.8
41.4

26.7
22.5
25.2




FEDERALRESERVE BANK OFKANSAS CITY
NET PEPOSIT LIABILITY,
FR.NOTE CIRCULATION,
CASH RESERVES.AtiD RESERVERATI0S.I920.
70
60
SO

V

40
30

A

A

N

B*

20

30
\

20

10

o

RESERVEPERCErtTA6ES. ACTUAL "A; AOJUSTED -B: SEENOTE BELOW.
W

F.R. NOTE CIRCULATION
ZZS

22S

OO
7S
SO
2S
DEPOSITANDFR.NOTELlABllJTIES:L;AliDTOTAL

RESERVES,

"C:

JAN. FEB. MAR. APR. MAY JUKE JULY AUG. SEPT. OCT. NOV. DEC.

Adjusted jvttcenbages are calculated after increasing or
reducing reserreaheld -bythe.
amountof'accomodationexUnded to or'received, fronvoiiur federalSteseri'e&xnKs



10
O

Schedule "A"

STATEMENT OF CONDITION
FEDERAL RESERVE BANK OF KANSAS CITY AND BRANCHES
At Close of Business Dec. 31, 1917, 1918, 1919 and 1920
December
31, 1920.

December
31, 1919.

December
31, 1918.

December
31, 1917.

33,395,897.54
40,768,690.00
2,332,424.70
61,596.97

$ 36,802,439.36
39,408,970.00
364,699.60
40,143.08

$ 27,273,189.98
54,483,690.00
101,461.00
514.43

$ 42,105,945.00
42,025,170.00
58,000.00
3.63

$ 76,558,609.21

76,616,252.04

$ 81,858,855.41

$ 84,189,118.63

ASSETS
1.

Cash:
Federal Reserve Bank (Gold)
Federal Reserve Agent (Gold)
Silver Coin, Certificates and Legal Tender...
Nickels and Cents

2. Other Currency:
Due from U. S. Treas. 5% Fund
National Bank Notes and Notes of other
Federal Reserve Banks
:
Unassorted Currency

$

915,590.00

$

481,550.00
4,426,374.00
$

5,823,514.00

957,460.00

$

1,136,100.00
2,739,301.00

1,839,565.00 j

400,000.00
216,300.00

5. Due from Banks and Bankers:
F. R. Banks—Transfers Bought
Transit Items
Exchange for Clearing House and Other Cash Items.
Overdrafts

$

$ 93,380,730.66

$ 57,453,637.39

2,171,266.43

18,691,464.20

14,203,695.36

$ 30,051,150.34
5,003,293.86
1,337,928.75

$112,072,194.86

$ 71,657,332.75

$ 36,392,372.95

$ 21,688,350.00

$ 23,934,750.00

$ 13,245,450.00

$ 10,633,090.00

$ 23,934,750.00

$ 13,245,450.00

$ 10,633,090.00

$ 50,212,828.30
531,458.65

$
$ 77,800,762.51
1,753,203.02
42,856.28

9,877,492.89
51,341,628.29
1,819,882.32
119,854.93

$

$ 50,744,286.95

4. Investments:
U. S. Bonds and Certificates of Indebtedness:

$ 2,405,165.00

$110,341,124.54

$ 21,688,350.00

Rediscounts and Loans, Member Banks
Rediscounts for other Federal Reserve Banks..
Acceptances Bought in Open Market

4,832,861.00

$112,512,390.97

3. Loans and Discounts:

$

565,600.00 , $

$ 79,596,821.81

$ 63,158,858.43

$

$

6. Sundries:

Furniture and Fixtures Recoverable
Bank Premises
War Loan Expense Reimbursable
Accrued Interest Receivable, U. S. Securities..
Due from Employees—L. L. Subscriptions


http://fraser.stlouisfed.org/
TOT 4 L_ ASSETS-.
Federal Reserve Bank of St. Louis

1,041,325.66
112,033.06
176,569.40

$ 1,329,928.12
$268,667,079.25

461,686.76
407,176.18
164,385.32
5,772.50

13,042.18
400,000.00
449,452.85
62,257.78
16,749.50

$ 1,039,020.76
$298,091,900.47

$
941,502.31
$233,267,163.90

616,300.00

6,688,918.65
20,712,511.97
233,680.87

$ 27,635,111.49
$

13,750.00
86,449.96
60,504.90
13,071.00

$
173,775.86
$159,639,768.93

STATEMENT OF CONDITION
FEDERAL RESERVE BANK OF KANSAS CITY AND BRANCHES
At Close of Business Dec. 31, 1917, 1918, 1919 and 1920
December
31, 1920.
$ 4,454,950.00
$ 9,158,814.24

LIABILITIES
1. Capital
2. Surplus
Profit and Loss

December
31, 1919.
$ 4,015,550.00
$ 6,116,033.36

December
31, 1918.
$ 3,659,450.00
$ 1,210,713.35

December
31, 1917.
$ 3,396,750.00
$

$

3. Deposits:
Reserve Balances
Cashier's Checks, Non-members
Clearing Accounts, etc.
Foreign Government Credits
Deferred Credits:
Members and Non-members

9,158,814.24

$

6,116,033.36

$

1,210,713.35

293,407.40

$

293,407.40

7. Federal Reserve Notes:
Outstanding
Less: On Hand and Forwarded for Redemption
8. Discount and Interest:
Unearned
9. Reserve for Depreciation:
U. S. Securities
10. Sundries

TOTAL LIABILITIES


$ 72,976,491.13

253,701.00
3,470,114.70

691,193.26

996,853.20

36,738,417.82

6. Federal Reserve Bank Notes:
Outstanding.
. .
Less: On Hand and Forwarded for Redemption

$ 67,317,512.25

486,223.96
192,000.00

.

$ 90,406,431.51

40,017,982.37

17,434,210.00

4,726,170.00

$111,734,867.03
4. Government Deposits
5. Due to Other Federal Reserve Banks:
Gold Settlement Suspense
Other Items

$ 74,318,225.25

$134,148,229.58

$ 85,442,915.51

$ 78,699,514.33

$

$

1,789,829.90

$

5,450,293.54

$

7,860,957.17

$ 11,249,008.19
16,490,713.98

$

$ 10,891,890.03

5,803,451.18
5,982,943.13

$

5,896,630.98

$ 10,891,890.03

$ 27,739,722.17

$ 11,786,394.31

$

5,896,630.98

$ 14,854,600.00
633,700.00

$ 19,980,000.00
447,300.00

$ 12,172,000.00
723,519.00

$

8,000,000.00

$ 14,220,900.00

$ 19,532,700.00

$ 11,448,481.00

$

8,000,000.00

$118,125,475.00
6,547,200.00

$110,555,755.00
6,466,500.00

$120,317,330.00
7,872,040.00

$ 58,023,420.00
2,650,710.00

$111,578,275.00

$104,089,255.00

$112,445,290.00

$ 55,372,710.00

$

$

$

$

4,909,019.88

1,212,953.51

$
84,466.59
$
410,942.97
$268,657,079.25

549,091.77

$
72,887.40
$
38,601.29
$298,091,900.47

612,912.83

$ 1,210,713.36
$233,267,163.90

119,799.05

$159,639,768.93

Schedule "B"
INCOME—PROFIT AND LOSS ACCOUNT
At Close of Business December 31, 1920, December 31, 1919, December 31, 1918, and December 31, 1917
December
31, 1920.
EARNINGS FROM:
Bills discounted for member banks
Bills Bought, acceptances
United States Bonds
Municipal Warrants
Transfers bought and sold
Sundry profits
Deficient reserve penalties (including interest)
Service charges, net

TOTAL EARNINGS
EXPENSES:
Federal Reserve Board Assessments
Federal Advisory Council
Governors' Conferences
Federal Reserve Agents' Conferences
Salaries:
Bank officers
Clerical staff
Special officers and watchmen
All others
Directors' fees
Per diem allowance
Traveling expenses
Officers' and clerks traveling expenses
Legal fees
Rent
Taxes and fire insurance
Telephone
Telegraph
Postage
Postage and insurance on gold concentration....
Postage and insurance on silver concentration..
Currency shipments
Expressage
Fidelity Bond premiums and group insuranceLight, heat and power
Printing and stationery
Repairs and alterations..:
other expenses not specified herein
All
http://fraser.stlouisfed.org/
rCPTfTJ A T I M
Federal Reserve Bank of St. Louis r . T.'Y'Dli'MBTJIS

December
31, 1919.

December
31, 1918.

December
31, 1917.

$6,441,476.47
211,974.98
505,539.24

$3,888,839.25
340,875.06
405,399.83

$2,643,990.71
157,982.45
312,442.84

1Ji9.no
14,321.63
238,424.89

198,748.86
20,914.39
106,704.52

202,521.45
11,576.59
99,928.66
23,493.43

$ 438,831.43
171,112.15
256,792.18
5,136.63
45,569.84
1,111.99
37,395.78

$7,409,987.31

$4,961,481.91

$3,451,936.13

$ 955,950.00

$

$

$

$

34,221.40
330.00
626.23
120.61

91,604.11
453,258.48
14,423.07
11,697.97
6,735.00
6,438.25
5,101.83
13,959.06
1.825.00
31,819.50
645.62
3,734.18
12.233.45
78,769.04
17,804.26
2,789.41
27,075.04
2,467.58
20,805.92
4,546.41
49,781.97
11,508.67
20,287.03

116,273.96
794,286.34
25,275.01
35,693.82
7,285.00
7,290.00
4,956.79
28,085.33
2,542.50
41,326.18
4,216.85
5,627.27
37,309.48
115,505.65
1,633.71
115.16
57,425.27
2,144.22
29,206.64
5,720.45
94,787.13
18,147.32
43,963.25
* 1 Kt/I 11 K K1

28,150.57
300.00
497.74
360.49

8

Q18R1QRK

17,998.37
270.00
430.09
327.87

13,118.24
370.00
605.23
37,781.97
39,684.21

68,045.47
188,679.56
5,609.11
784.50
8,260.00
3,675.00
6,553.24
2,425.80
1,225.00
21,262.71
169.04
2,481.04
4,454.90
63,782.23
35,800.81
1,076.30
1,412.27
466.38
6,004.52
2,522.58
26,181.58
5,020.04
18,617.18

1,570.05
3,975.00
3,660.00
4,192.65
1,203.09
775.00
8,849.96
810.40
565.11
8,838.00

1,233.64
1,871.00
1,184.56
7,314.00
286.74
17,388.17
q.

IRK 3 3 7 n 9

Schedule "B"—Continued.

INCOME—PROFIT AND LOSS ACCOUNT
December
31, 1920.
EXTRAORDINARY EXPENSES:
Cost of Federal Reserve notes issued
Cost of Federal Reserve notes issued and unissued...
Miscellaneous charges on Federal Reserve currency
(including taxes on Federal Reserve Bank notes)
Depreciation furniture and equipment
> Transit department disbursements, net deficiency
Bank premises

$

December
31, 1919.

December
31, 1918.

December
31, 1917.
$

48 679 35

97,477.12

$ 131,339.12

117,326.40
126,707.39

81,820.72
54,289.85

57,017.18
46,710.47

20,885.26
38,353.22
8,196.09

$

98,542.01

2,333.33

Total extraordinary expenses

1

$ 343,844.24

$ 267,449.69

$ 202,269.66

$ 116,113.92

Total all chargeable expenses

$1,857,959.81

$1,186,089.34

$ 695,805.25

$ 271,450.94

Net earnings
Profit and loss account
Sundry entries to profit and loss account

$5,552,027.50

$3,775,412.57

$2,756,130.88
293,407.40
2,351.68

$ 684,499.06
91,381.23

Total earnings for distribution
LESS:
Dividends paid
Premiums on United States Bonds
Cost of unissued Federal Reserve notes
Depreciation on Bank premises
Reserve depreciation on United States Bonds

$5,552,027.50

$3,775,412.57

$3,051,889.96

$ 775,880.29

? 257,672.52

$ 228,755.50

$ 309,729.25

$ 364,502.73
75,462.42
42,507.74

Total deductions
Net credit to profit and loss account during year 1919 '
(Transferred from the account previously established for depreciation on United States Bonds)
Net credit to profit and loss acct. "Deferred Charges"..

100,000.00
220,734.00

11,579.19
$ 269,251.71

$ 228,755.50

$ 630,463.25

$ 482,472.89

$ 147,949.58
233.30
5,282,775.79

3,546,657.07

$2,421,426.71

$ 293,407.40

Net earnings to profit and loss account

$5,283,009.09

$3,694,606.65

$2,421,426.71

$ 293,407.40

Carried to surplus
Carried to super-surplus
Paid to U. S. Government as 1920 Franchise Tax

$2,793,866.64
248,914.24
2,240,228.21

$3,694,606.65

$2,421,426.71

$5,283,009.09

$3,694,606.65

$2,421,426.71




$

Schedule "BB"

EARNINGS AND EXPENSES FOR CALENDAR YEARS 1919 AND 1920, ALSO PROFIT AND LOSS ON
DECEMBER 31, 1919, AND DECEMBER 31, 1920
December 31, 1920

I
o!
|

Earnings as shown on Form 95
Expense of operation of bank proper
Cost of Federal Reserve currency issued (including expressage,
insurance, etc.)
Miscellaneous charges account note issues (including taxes)
Depreciation on furniture and equipment
Bank premises

Reserve for depreciation on U. S. Bonds




$4,961,481.91

$7,409,987.31
$1 514,115.57

$ 918,619.65

97,477.12
117,326.40
126,707.39
2,333.33

131,339.12
81,820.72
54,289.85

$

11,579.19

1,186,069.34
$3,775,412.57
147,940.58

$5,552,260.80

,• •

1,857,959.81
$5,552,027.50
233.30

Net earnings for year
Sundry credits to profit and loss account during years
Less:

December 31, 1919

$3,923,362.15

Schedule "BB"—Continued.

,

'

EARNINGS AND EXPENSES FOR CALENDAR YEARS 1919 AND 1920, ALSO PROFIT AND LOSS ON
'DECEMBER 31, 1919, AND DECEMBER 31, 1920
December 31, 1920
Dividends paid:
June 30, 1919, for period Jan. 1, 1919, to June 30, 1919
Dec. 31, 1919, for period June 30, 1919 to Dec. 31, 1919
June 30, 1920, for period Jan. 1, 1920, to June 30, 1920
Dec. 31, 1920, for period June 30, 1920, to Dec. 31, 1920
Total deductions
Undistributed profits, Dec. 31, 1920 and 1919
Carried to surplus fund
Carried to super-surplus
Paid to U. S. Government as 1920 Franchise Tax
Balance of surplus account Dec. 31, 1920 and 1919 ..
Balance of super-surplus account Dec. 31, 1920




125,088.86
132,583.66
2,793,866.64
248,914.24

December 31, 1919
111,811.73
116,943.77

269,251.71
$5,283,009.09

228,755.50
3,694,606.65

$3,694,606.65

$3,042,780.88
2,240,228.21
$5,283,009.09

$8,909,900.00
248,914.24
$9,158,814.24

6,116,033.36

Schedule "C"

DISCOUNT OPERATIONS FOR THE YEAR 1920
REDISCOUNTS FOR MEMBER BANKS, DISTRIBUTED BY STATES

State

Colorado
Kansas
Missouri
Nebraska
New Mexico
Oklahoma
Wyoming
Total

Number
Member
Banks

No. Banks
Accommodated

145
271
58
210
13
340
50

114
171
45
192
12
257
35

3,092
4,210
3,041
7,052
202
5,169
688

1,087

826

23,454

Classification of Paper Discounted
Trade Acceptances
$ 10,141,682.98
Bankers' Acceptances
368,482.74
Agricultural
50,906,423.11
Agricultural, secured by live stock
186,855,000.57
Industrial and Commercial:
Secured by U. S. Securities
48,616,739.38
All other
273,910,928.56
Member Bank Collateral Notes:
Secured by U. S. Securities
1,065,409,582.06
Otherwise secured
31,734,390.09
Total



$1,667,943,229.49

Offerings
Accepted

Volume by Months
Distribution by States January,
$118,779,298.17
February,
105,406,440.37
of Paper
March,
130,262,598.04
Discounted
April,
142,073,435.69
May
133,478,129.08
June
142,708,173.88
$ 222,453,009.98
July,
147,852,801.88
125,536,743.23
August
145,550,168.77
687,210,848.49
September,
158.104,969.35
10,162,982.42
October,
163,968,589.48
239,981,689.65
November,
140,572,768.07
356,931,607.29
December,
139,185,856.71
25,666,348.43
$1,667,943,229.49

$1,667,943,229.49

Miscellaneous
Number of notes rediscounted
104,687
Average amount of above
$5,450
Number of collateral loans made
15,104
Average amount of above
$72,630
Maximum amount of paper held—Nov. 6
$164,277,697.84
Minimum amount of paper held—Feb. 3
90,783,586.83
Rejected in Part:
5,881 offerings, 18,760 notes, amounting to 74,470,227.31
Rejected in Whole:
578 offerings, 1,602 notes, amounting to...
5,316,739.76

Schedule "CC"

REDISCOUNT TRANSACTIONS WITH AND FOR OTHER
FEDERAL RESERVE BANKS
As of Close of Business Each Friday During Year 1920.
Rediscounted
with other
Federal Reserve
Banks
January 2
January 9
January 16
January 23
January 30
February 6
February 13
February 20
February 27
March 5
March 12
March 19
March 26
April 2
April 9
April 16
April 23
April 30
May 7
May 14
May 21
May 28
June 4
June 11
June 18
June 25
July 2
July 9
July 16
July 23
July 30
August 6
August 13
August 20
August 27
September 3...
September 10...
September 17...
September 24...
October 1
October 8
October 15
October 22
October 29
November 5..
November 12..
November 19..
November 26..
December 3...
December 10..
December 17..
December 24..
December 31...



Rediscounted
for other
Federal Reserve
Banks

$16,208,500.00
11,850,000.00
5,000,000.00
3,750,000.00
? 5,000,000.00
9,950,000.00
5,000,000.00
4,470,000.00
4,300,000.00
3,685,000.00

6,000,000.00
11,800,300.00
15,871,800.00
15,000,000.00
7.000,000.00
14,248,500.00
13,864,500.00
15,430,300.00
9,779,000.00
11.144.000.00
12,958,000.00
15,935,789.81
12,766,949.04
19,493,084.38
18,861,174.30
22,902,386.86
25,755,903.97
23,534,115.20
17,639,768.28
22,247,117.47
21,017,916.68
22.841,692.04
26.729,377.04
41,175,220.02
41,984.910.69
40,165,977.64
43,063,438.57
45,783,758.19
44,894,420.04
41,877.694.59
40,502,981.41
29,968,382.09
28,463,142.86
32,030,661.93
28,264,550.74
27,763,285.74
31,373,468.21
29,060,531.21

Schedule "D"

OPEN MARKET TRANSACTIONS FOR THE YEAR 1920
Bills Discounted—Bought (Bankers' Acceptances)
010 items purchased in above period, toal

$17,173,430.35

At the following discount rates:
5
5%
6
6%
7

per
per
per
per
per

cent
cent
cent
cent
cent

Amounts.

-

100,000.00
881,347.94
11,000,738.48
2,549,112.11
2,642,231.82

By maturities at date of purchase:

$17,173,430.35

Up to 30 days
30 to 60 days..
60 to 90 days

$ 3,473,695.70
10,302,639.03
3,397,095.62

Total
Classification:
Domestic
Export or import

$17,173,430.35
$ 1,258,919.45
15,914,510.90

Total

Total

$

$17,173,430.35

•

PANKERS 1 ACCEPTANCES ACQUIRED FROM OTHER FEDERAL RESERVE BANKS
1C2 items acquired from Federal Reserve Bank, Boston, aggregating
Classification:
Domestic
Foreign

$1,449,480.47
3,600,060.36
$5,049,540.83

$5,049,540.83 at 5*4 per cent

By maturities at date of purchase:
Up to 30 days
31 to 60 days
61 to 90 days
Total

$1,253,908.35
3,348,463.08
447,169.40
$5,049,540.83

MUNICIPAL WARRANTS.
Purchased



None

Schedule "E"

SCHEDULE OF CHANGES IN DISCOUNT RATES AND DATES EFFECTIVE DURING 1920
Jan. 3
Member Banks' 15 Days Notes:
Secured by Treasury Certificates of Indebtedness..
Member Banks' 15 Days Notes:
Secured by Liberty Bonds or Victory Notes
Member Banks' 15 Days Notes:
Secured by Eligible Paper
Rediscounts:
Secured by Liberty Bonds or Victory Notes
Rediscounts:
Secured by Certificates of Indebtedness
Rediscounts:
Commercial Paper maturing 15 days or less
Commercial Paper maturing 16 to 90 days
Agricultural or Live Stock Paper maturing 15 days
or less
Agricultural or Live Stock Paper maturing 16 to
90 days
:
Agricultural or Live Stock Paper maturing 91 days
to 6 months
Trade Acceptances maturing 15 days or less
Trade Acceptances maturing 16 to 90 days....




Jan. 23

4%%

4%%

5%

5%

5V2%

5>/2%

5%%

51/2%

6%

5y 2 %

51/2%

Feb. 26

April 19

Progressive Rate
became effective
See Text Page —'

July 3

Sept. 28

Rate of Certificate
Minimum 5 %

Rate of Certlf
Minimum 5%

5%%

51/2%

6%

6%

6%

6%

6%

5%%

5%%

5y 2 %

6%

Rate of Certificate
Minimum 5 %

Rate of Certif.
Minimum 5%

Normal Rate

Normal Rate

4%%

4%%

5%

51/2%
51/2%

6%
6%

6%
6%

5%%

6%

bVz%
6%
5%%
5%%

5%
Normal Rate

6%
6%

6%
6%

6%
6%

6%

6%

6%

6%

6%

6%

6%

6%

6%

6%
6%
6%

6%
6%
6%

6%
6%
6%

6%
6%
6%

6%
6%
6%

Schedule "F"

OPEN MARKET TRANSACTIONS FOR THE YEAR 1920
UNITED STATES SECURITIES

3%
4
2
4%
4%
4%
4%
5
4%
5
5%
5%
5%
6

per
per
per
per
per
per
per
per
per
per
per
per
per
per

cent
cent
cent
cent
cent
cent
cent
cent
cent
cent
cent
cent
cent
cent

PURCHASES
United States Liberty Loan Bonds (1st issue), 1947
United States Liberty Loan Bonds (2nd issue), 1942
United States Special Certificates of Indebtedness
United States Liberty Loan Bonds (4th issue), 1938
United States Victory Loan Bonds (5th issue), 1923
United States Certificates of Indebtedness (Sundry Issues)
United States Certificates of Indebtedness (Sundry Issues)
War Finance Corporation Bonds, 1920
United States Certificates of Indebtedness (Sundry Issues)
United States Certificates of Indebtedness (Sundry Issues)
United States Certificates of Indebtedness (Sundry Issues)
United States Certificates of Indebtedness (Sundry Issues)
United States Certificates of Indebtedness (Sundry Issues)
United States Certificates of Indebtedness (Sundry Issues)

Total
SALES
United States Liberty Loan Bonds to secure Participation Certificates
War Finance Corporation Bonds
4V* per cent United States Certificates of Indebtedness (Sundry Issues)
4% per cent United States Certificates of Indebtedness (Sundry Issues)
4% per cent United States Certificates of Indebtedness (Sundry Issues)
5 per cent United States Certificates of Indebtedness (Sundry Issues)
5% per cent United States Certificates of Indebtedness (Sundry Issues)
5V2 per cent United States Certificates of Indebtedness (Sundry Issues)
5% per cent United States Certificates of Indebtedness (Sundry Issues)
6 per cent United States Certificates of Indebtedness (Sundry Issues)
TotaL



None
None
$112,000,000.00
None
150.00
40,000.00
4,914,500.00
None
2,912,500.00
191,000.00
400,000.00
222,000.00
3,255,500.00
4,143,000.00
$128,078,650.00
$

50.00
None
59,000.00
3,219,000.00
2,776,000.00
181,500.00
400,000.01
202,000.00
3,256,000.00
4,142,500.00
$ 14,236,050.00

Schedule "F"—Continued.
UNITED STATES SECURITIES ON HAND DECEMBER 31, 1920
3 per
3 per
4 per
2
per
2 per
3% per
4Vi per
4% per
4% per
Liberty
iVi per
4% per
2 per
6 per

cent United States Conversion Bonds, 1916-1946
cent United States Conversion Bonds, 1917-1947
cent United States Bonds, 1925
cent Panamas, 1936
cent Consols, 1930
cent United States Liberty Loan Bonds (1st issue), 1947
cent Converted United States Liberty Loan Bonds (2nd issue), 1942
cent United States Liberty Loan Bonds (4th issue), 1938
cent United States Victory Loan Notes (5th issue). 1923
Loan Bonds to secure Participation Certificates
cent United States Certificates of Indebtedness (Sundry Issues)
cent United States Certificates of Indebtedness (Sundry Issues)
cent Special United States Certificates of Indebtedness
cent United States Certificates of Indebtedness (Sundry Issues)

$

Total

16,600.00
821,900.00
825.000.00
20,000.00
7,155,000.00
20,050.00
8,000.00
400.00
600.00
300.00
None
Mone
12,820.000.00
500.00

.$ 21,688,350.00

Schedule "G"

AVERAGE OF EACH CLASS OF EARNING ASSETS HELD, TOTAL EARNINGS and AVERAGE ANNUAL RATES THEREON
Average
Holdings
Bills discounted, members
Bills bought in open market
United States securities
Total



.

Earnings

Average
Rate

$106,404,891.00
3,887,909.00
22,771,594.00

$6,441,476.47
211,974.98
505,539.24

.06053
.05452
.02220

$133,064,394.00

$7,158,990.69

.05380

Schedule " H "

RESERVE POSITION—NET DEPOSITS
(Monthly Averages)

Month

f

January
February
March
April
May
June
July
August
September.
October
November
December
Yearly averages




Percentages
Carried
1920
1919

Percentage
Required

Percentage Excess
Over Requirements
1920
1919

48.2
54.5
49.9
40.3
41.8
41.4
41.3
42.7
40.3
41.2
40.8
40.5

50.6
52.4
47.5
42.9
43.5
43.4
44.1
46.7
44.9
41.2
42.8
42.8

35
35
35
35
35
35
35
35
35
35
35
35

13.2
19.5
14.9
5.3
6.8
6.4
6.3
7.7
5.3
6.2
5.8
5.5

15.6
17.4
12.5
7.9

43.5

45.2

35

8.5

10.2

8.S

8.4
9.1
11.7
9.0
6.2
7.8
7.9

Schedule "I"

MEMBERSHIP—ADDITIONS AND WITHDRAWALS AND
EFFECT ON THE TOTAL CAPITAL STOCK.
Additions

State

Colorado
Kansas
Missouri
Nebraska
New Mexico
Oklahoma
Wyoming
Total

Number
of Banks

Capital Subscription Capital and Surplus
Federal Reserve
of Member Banks
Bank of Kansas City

13
20
1
5
1
30
5

$ 65,800.00
173,900.00
132,000.00
24,500.00
1,200.00
143,100.00
27,400.00

$1,096,000.00
2,897,500.00
2,200,000.00
407,500.00
60,000.00
2,385,700.00
456,500.00

75

$567,900.00

$9,503,200.00

Withdrawals

State

Colorado
Kansas
Missouri
Nebraska
New Mexico
Oklahoma
Wyoming
Total




Number
of Banks

Capital
Surrendered

Capital and Surplus
of Member Banks

1
3
4
3
1
12

$ 17,000.00
81,000.00
157,500.00
11,600.00
11,100.00
47,100.00

$ 282,500.00
1,350,000.00
2,625,000.00
192,500.00
185,000.00
784,700.00

24

$325,300.00

$5,419,700.00

—54—

Schedule "J"

MEMBER-BANK DEPOSITS
(Net daily reserve balance for the year 1920)
Month
January
February
March
April
May
June
July
August
September
October
November
December

Amount
$89,104,000.01
90,976,310.22
90,143,289.19
87,959,695.93
83,815,830.32
82,654,706.35
83,334,843.88
81,101,776.40
79,130,199.62
75,872,776.12
77,552,894.88
77,142,370.40

Yearly Average

$83,232,391.11

DEFICIENT RESERVES
(Daily average for the year 1920)
Period

Number
of Banks

Daily Average
Deficiency

January
February
March.
April
May
June
July
August
September
October
November
December.

190
220
237
240
218
235
195
290
333
395
367
341

$1,455,894.00
1,267,870.00
1,610,964.00
3,121,627.00
2,087,850.00
1,606,789.00
980,758.00
2,016,461.00
3,321,130.00
3,991,982.00
3,976,460.00
2,512,773.00

11,428.88
8,318.84
12,887.29
21,965.17
15,984.46
14,617.44
8,823.49
17,500.60
28,820.38
39,406.91
35,146.44
23,524.99

$2,327,602.00

$238,424.89

For the Year 1920




—55—

Amount of
Penalties

Schedule "K"

GOVERNMENT ACCOUNT FROM JANUARY 1, 1920, TO DECEMBER 31, 1920
(Including balance to credit of U. S. Treasurer
December 31, 1919, and December 31, 1920)
Balance to credit of U. S. Treasurer December 31, 1919
Transfers from Treasurer through Gold Settlement Fund
Transfers of excess balances from Government Depositories
Receipts from sale of Treasurer's Certificates of Indebtedness
Receipts from sale of Spec. Certificates of Indebtedness
Withdrawals from Special Depositories
Deposits from Internal Revenue Collectors
War Finance Corporation Collections
War Savings Certificates deposited for credit K. C. Postmaster
Amount checks received from U. S. Treasurer for collection
Receipts from sale of War Savings Securities

$ 88,520,000.00
20,134,380.40
120,180,000.00
112,000,000.00
76,559,059.59
95,146,420.69
7,479,053.00
2,102,686.19
5,647,283.01
929,745.21

Miscellaneous credits to U. S. Treasurer
Total
Government warrants paid
Government coupons paid
Treasury Certificates of Indebtedness redeemed
Special Certificates of Indebtedness redeemed
War Savings Certificates redeemed
Deposited with Special Depositories
Transferred by order t_J. S. Treasurer
Currency shipped to Treasurer
F. R. Notes delivered to Treasurer through F. R. Board
Cash refund to War Savings Securities Agents
Miscellaneous debits to U. S. Treasurer
Balance to credit of U. S. Treasurer Dec. 31, 1920
Total



$ 1,283,251.75

526,698,628.09
28,408,408.97

:
$ 91,287,693.29
19,186,957.85
138,356,500.00
112,000,000.00
2,102,686.19
65,857,661.38
81,797,907.00
21,758,000.00
10,880,000.00
874,086.63

$558,390,288.81

542,101,492.34
10,039,446.92
4,249,349.55
$558,390,288.81

Schedule "L"

FEDERAL RESERVE AGENT'S STATEMENT OF FEDERAL RESERVE NOTES ON HAND, OUTSTANDING, RECEIVED FROM COMPTROLLER OF THE CURRENCY, CANCELLED AND
COVERAGE OF TOTAL ISSUE AS OF DECEMBER 31, 1920
RESOURCES

ji

Federal Reserve notes on hand
Federal Reserve notes outstanding
Rediscounts to secure Federal Reserve notes
Credit balance in gold-redemption fund
Credit balance with Federal Reserve Board
Federal Reserve notes sent to Comptroller of Currency for cancellation and destruction
Total
LIABILITIES
Federal Reserve notes from Comptroller of Currency—gross amount
Collateral received from Federal Reserve Bank: Eligible paper
Gold
Total




$ 3,820,000.00
118,125,475.00
112,247,331.79
3,408,690.00
37,360,000.00
147,554,525.00
$422,516,021.79
$269,500,000.00
112,247,331.79
40,768,690.00
$422,516,021.79

Schedule "M'

FEDERAL RESERVE NOTES RECEIVED AND RETURNED
(Amounts of Federal Reserve Notes of the several denominations received from and returned to other Federal Reserve
Banks for redemption or credit by the Federal Reserve Bank of Kansas City during the period since January 1, 1920.)
FIVES
Received
from

Exchanged with Federal Reserve
Bank of—

r

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Dallas
San Francisco

$
...

:

Total




Returned
to

TENS
Received
from

Returned
to

TWENTIES
Received
from

Returned
to

FIFTIES
Received
from

288,000 $
94,000 $ 348,800 $ 277,000 $ 435,100 $ 254,000 $
1,669,000 3,278,800
1,027,000
1,611,000
643,000
1,502,000
352,500
270,000
279,000
112,000
663,500
410,000
727,000
584,000
671,500
274,500
815,500
1,136,000
571,200
214,000 1,532,350
274,900
103,500
356,000
562,000
577,000
418,250
293,500
820,500
874,000
4,152,000
4,997,000 4,252,000
3,538,500
3,219,500
5,870,000
2,660,000 4,375,720
2,825,320
3,505,680
2,121,000
2,852,000
513,500
687,000
1,134,000 1,012,000
1,048,000
891,500
2,186,100
2,011,000 2,860,000
1,300,500
2,910,000
1,377,500
1,900,440
1,481,000 3,264,440
1,355,265
2,642,000
1,252,500

Returned
to

35,500 $
337,700
34,000
60,400
26,100
50,550
222,500
425,150
43,500
169,350
248,400

89,450
454,750
103,650
310,000
130,700
73,600
550,850
290,400
40,300
414,450
264,200

$12,491,735 $10,382,500 $16,618,720 $15,868,000 $23,309,910 $19,854,000 $ 1,653,150 $ 2,722,350

Schedule "M"—Continued.

FEDERAL RESERVE NOTES RECEIVED AND RETURNED
(Amounts of Federal Reserve Notes of the several denominations received from and returned to other Federal Reserve
Banks for redemption or credit by the Federal Reserve Bank of Kansas City during the period since January 1, 1920.)
FIVE HUNDREDS

HUNDREDS
Exchanged with Federal Reserve
Bank of—

r

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Dallas
San Francisco..
Total




Received
from
45,600
656,900
52,000
84,900
31,700
58,500
265,000
246,600
89,500
186,900
429,900

Returned
to

Received
from

72,900
493,400
122,100 |
94,500
70,300
59,400
308,900
182,400
68,600
353,900
293,500

$ 2,147,500 $ 2,119,900 ' $

Returned
to

1,500
53,000
4,500
15,000
3,000
8,000
11,000
43,000
4,000
16,500
21,000
180,500 $

THOUSANDS
Received
from

Returned
to

TOTAL AMOUNTS
Received
from

Returned
to

29,000
15,000
3,500
18,000
25,500

7,000
76,000
6,000
16,000
2,000
14,000
17,000 i
41,000
12,000
22,000 ;
28,000 I

8,000 f 1,161,500 I 796,350
4,940,150
98,000
7,040,400
1,020,750
1,391,500
3,000
2,406,500
4,000
2,390,300
877,500
1,000
2,441,250
1,873,500
11,000
1,946,800
68,000 12,458,000 15,043,250
74,000 11,462,470
8,203,800
20,000
3,205,900
2,361,500
7,100,850
16,000
6,741,350
5,996,700
38,000
7,247,445

127,500$

241,000 1$

341,000 i $56,642,515 $51,465,250

1,000
30,000
3,500
2,000

Schedule "N"

FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENT
Issued to bank, 1920
$72,570,000.00
Received by Comptroller for cancellation and destruction
60,640,280.00
Federal Reserve Notes on hand, now, unissued
3,820,000.00
Cost of issued and unissued notes for the year
97,477.12
The cost of issued notes was made on the following basis:
DENOMINATIONS
Cost per $1,000
$2.61
1.32
.71
.33
.21
None
None

Fives
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands




•a.
»>•

v.

- (JO —

Schedule "O"

OFFICIAL AND CLERICAL STAFF
1920
22
864

Number of Officers
Number of employees in various departments

1919
18
565

MONTHLY PAY ROLL EMPLOYEES
1920
Department
Federal Reserve Agent's office
General Clerical force, including discount, auditing and all other departments
except transit
.•
Transit Department
Fiscal Agency Department (recoverable through U. S. Treasurer)
Total..




1919

Number

Monthly
Salaries

13

$ 2,345.00

6

:522
338
191

31,756.75
27,512.75
23,095.00

204
199
156

22,160.00
17,180.00
16,240.84

864

$84,709.50

565

$56,339.18

Number

Monthly
Salaries
$

758.34

Schedule "P"

STATE BANKS AND TRUST COMPANIES ADMITTED TO MEMBERSHIP IN FEDERAL RESERVE BANK
OF KANSAS CITY DURING 1920
State
Missouri
Nebraska
o
to

City

Name of Bank

Kansas City
Aurora
Meadow Grove
Meadow Grove
Oakland

Oklahoma

Wyoming




Ardmore
Billings
Bixby
Clinton
Cordell
Kingfisher
Okarche
Oklahoma City
Okmulgee
Stigler
Evanston
Mountain View

'.

Midwest Reserve Trust Company
Fidelity State Bank
Meadow Grove State Bank
Security Bank
Oakland State Bank
Guaranty State Bank
Citizens Bank
Bixbv State Bank
Clinton State Bank
Oklahoma State Bank
Citizens State Bank
First Bank of Okarche
First State Bank
American State Bank
First State Bank
Stockgrowers Bank
Uinta Co. State Bank

Date Admitted
to System
10- 4-20
11-22-20
11- 3-20
2-11-20
9-17-20
2- 5-20
4- 4-20
3-27-20
3-29-20
3-20-20
3- 1-20
8- 2-20
2-14-20
4- 3-20
4- 2-20
7- 8-20
7-13-20

Schedule "Q"

BANKS GRANTED FIDUCIARY POWERS DURING 1920,
UNDER SECTION 11 (k) OF THE FEDERAL RESERVE
ACT, AS AMENDED BY THE ACT OF
SEPT. 26, 1918
State
Colorado

Kansas

City
Akron
Colorado Springs
Denver
Denver
Fort Collins
Gunnison
Lamar
Montrose
Sterling
Telluride
Trinidad
Emporia
Emporia

Pratt

Missouri

Wichita
Kansas City

King City
Maryville
Columbus
Nebraska
Emerson
Nebraska City
Randolph
South Omaha
New Mexico
Las Vegas
Oklahoma
Enid
Hominy
Lawton
*Muskogee
McAlester
Oklahoma City
Oklahoma City
Sallisaw
Shawnee
Wyoming
Casper
Cheyenne
Thermopolis
Powell
'Granted supplementary powers.




—63-

Name of Bank
First National Bank
Colorado Springs National Bank
Hamilton National Bank
Stockyards National Bank
Fort Collins National Bank
First National Bank
Lamar National Bank
Montrose National Bank
Logan County National Bank
First National Bank
Trinidad National Bank
Commercial Natl. Bank & Trust Co.
Citizens National Bank
First National Bank
First National Bank
Continental National Bank of
Jackson County
First National Bank
First National Bank
First National Bank
First National Bank
Nebraska City National Bank
First National Bank
Stockyards National Bank
First National Bank
American National Bank
National Bank of Commerce
First National Bank
First National Bank
First National Bank
First National Bank
Southwest National Bank
First National Bank
Shawnee National Bank
National Bank of Commerce
American National Bank
First National Bank
Powell National Bank

Schedule "R"
FEDERAL RESERVE BANK OF KANSAS CITY.
OPERATIONS OF CHECK CLEARING AND COLLECTION DEPARTMENT.
Detailed Classification of Number and Amount of Items Handled, by Months, During 1920.
Items Drawn on Banks in Own District.
Items drawn on
Located Outside F. R.
Items Forwarded to
Treasurer of
Bank and Branch
Located in F. R. Bank
Other F. R. Banks and
Cities.
United States.
and Branch Cities.
Their Branches.
Month.
Totals, (a)
Amount.
Number.
Amount. Number.
Amount. Number.
Number.
Amount.
10,649
342,974
334.360
91,510
968,739
128,181 3,675,559
429,423
$ 486,935 2.820,266
January
11,720
326,084
314,119
84,959
918,524
111,992 3,529,718
468,728 2,719,114
411,526
February
10,397
408,240
349,512
125,315 4,063,775
66,317
559,129 3,140,794
507,152
1,103,081
March
13,583
403,395
388,930
126,287 4,505,457
570,363 3,333,457
647,892
135,178
1,113,628
April
11,497
350,625
369,104
108,308 4,456,448
500,744 3,214,690
654,507
218,147
971,174
May
9,696
341,539
361,049
108,462 4,154,855
478,335 3,096,632
586,886
110,288
938,232
June
12,443
355,686
373,421
113,048 4,162,825
503,454 3,144,250
497,215
147,939
984,631
July
341,454
12,859
404,235
103,518 4,384,986
521,429 3,392,731
488,720
99,300
979,260
August
355,422
10,753
468,884
114,111 4,888,767
478,945
584,802 3,862,256
78,682
1,065,088
September ..
13,031
368,490
448,923
119,709 4,936,787
466,099
599,533 3,872,011
149,754
1,100,763
October
17,152
331,985
425,108
106,486 4,884,106
555,508 3,778,534
459,914
220,550
1,011,131
November
301,594
11,567
478,171
108,087 4,921,262
491,114 3,864,163
449,990
128,938
912,362
December
Totals
6,078,269
$6,320,074 40,238,898 $4,227,488 $1,531,562
$145,547 4,715.816
$1,373,504152.554,545 $12,066,613
(a)

Exclusive of duplication on account of items handled by both parent bank and branch.




Schedule "S"
SUBSCRIPTIONS TO CERTIFICATES OF INDEBTEDNESS FOR THE YEAR 1920
State

Trust

Banks

Banks

Companies

Number

Amount

$ 5,229,500
8,531,000
3,174,500
3,081,000
1,015,500
1,634,500
2,395,500
3,854,500
8,323,500
4,515,000
465,000
2,544,500
458,000
4,501,000
1,693,500
1,576,000
1,329,000
5,810,500

$ 1,626,000
3,642,000
1,766,500
1,219,000
479,000
750,500
467,000
388,000
1,169,500
489,500
279,500
920,500
182,500
1,177,000
330,000
504,000
148,000
812,000

$ 1,333,000
376,500
269,000
202,500
247,500
69,000
305,000
552,000
836,000
217,000
501,000
298,500
44,000
1,238,000
1,044,000
2,818,500
366,500
1,580,000

499
420

1388-

$ 4,848,000
3,450,500
2,025,500
1,426,500
206,000
997,000
1,141,500
393,000
1,083,500
573,500
965,000
2,236,500
1,002,000
2,397,500
1,677,000
2,219,500
1,656,000
3,101,000

$ 13,036,500
16,000,000
7,235,500
5,929,000
1,948,000
3,451,000
4,309,000
5,187,500
11,412,500
5,795,000
2,210,500
6,000,000
1,686,500
9,313,500
4,744,500
7,118,000
3,499,500
11,303,500

$60,132,000

$16,350,500

$12,298,000

9833

$31,399,500

$120,180,000

National
Series

Dated

Maturity

Td-1920
TM4-1920
TM-1921
E-1920
P-1920
G-1920
H-1920
A-1921
TJ-1921
B-1921
TM2-1921
C-1921
TM3-1921
TS-1921
TM4-1921
D-1921
TJ2-1921
TD-1921

1- 2-20
2- 2-20
3-15-20
4- 1-20
4-15-20
4-15-20
5-17-20
6-15-20
6-15-20
7-15-20
7-15-20
8-16-20
9-15-20
9-15-20
10-15-20
11-15-20
12-15-20
12-15-20

12-15-20
3-15-20
3-15-21
7- 1-20
7-15-20
10-15-20
11-15-20
1- 3-21
6-15-21
1-15-21
3-15-21
8-16-21
3-15-21
9-15-21
3-15-21
5-16-21
6-15-21
12-15-21

Total
Number of National Banks in District
1,024
Number of State Banks in District
3,342
Number of Trust Companies in District.. 112




Number subscribing
Number subscribing
Number subscribing

458
738
40

557
221
57
407
239
275
989
287
396
914
116

1315
616
731
406

Per cent subscribing
Per cent subscribing
Per cent subscribing

Total

44.72
22.06
35.71

Schedule "T"

CERTIFICATES OF INDEBTEDNESS—REGULAR ISSUES
Total

No. of

Series
E-1920
F-1920
G-1920
H-1920
A-1921
B-1921
C-1921
D-1921

Dated
April 1, 1920
April 15, 1920
April 15, 1920
May 17, 1920
June 15, 1920
July 15, 1920
August 16, 1920
November 15, 1920

Total.




Due
July 1, 1920
July 15, 1920
October 15, 1920
November 15, 1920
January 3, 1921
January 15. 1921
August 16, 1921
May 16, 1921

Rate
4%%
5 %
5%%
5%%
5%%
5%%
6 %
5%%

Paid by Credit

Subscriptions

531
219
790
570
547
503
1286
917

$ 2,799,346.30
1,118,535.31
1,742,690.88
2,696,500.00
3,534,547.36
5,170,950.54
3,994,000.00
2,850,000.00

$ 5,929,000
1,948,000
3,451,000
4,309,000
5,187,500
5,795,000
6,000,000
7,118,000

5363

$23,906,570.39

$39,737,500

Subscribers

Schedule "U"

CERTIFICATES OF INDEBTEDNESS—TAX ISSUES
Series

I

TD-1920
TM4-1920
TM-1921
TJ-1921
TM2-1921
TS-1921
TM3-1921
TM4-1921
TJ2-1921
TD-1921

Dated
January 2, 1920
February 2, 1920
March 15, 1920
June 15, 1920
Julv 15, 1920
September 15, 1920
September 15, 1920
October 15, 1920
December 15, 1920
December 15, 1920

Total.... * -




Due
December 15, 1920
March 15, 1920
March 15, 1921
June 15, 1921
March 15, 1921
September 15, 1921
March 15, 1921
March 15, 1921
June 15, 1921
December 15, 1921

Rate
4%%
4V2%
4%%
6 %
5%%
6 %
5%%
5%9'r
5%%
6 %

No. of
Subscribers Paid by Credit

Total
Subscription

1265
986
1095
1899
599
1831
227
822
431
1870

$ 5,671,725.42
6.980.742.81
2,701,720.11
7,914,168.71
1,525,085.89
5,377,539.73
907,000.00
2,894,000.00
1,503,500.00
6,475,608.32

$13,036,500
16,000.000
7,235,500
11,412,500
2,210,500
9,313,500
1,686,500
4,744,500
3,499,500
11,303,500

11025

$41,951,090.99

$80,442,500

Schedule "V"

TEMPORARY-PERMANENT EXCHANGES—FISCAL AGENCY DEPARTMENT
January 1, 1920, to December 31, 1920
Temporary Bonds Received
Amount

N o . of Pieces
Temporary Coupon for Permanent Coupon:
First 4's
First 4% 's
First-Second 41/4's
Second 4's
Second 4%'s
Third 4%'s
Fourth 4 V s
Total
Temporary Coupon for Registered:
First 4's
First 4%'s
First-Second 4 Vi 's
Second 4's
Second 41,4's
Third 4 % 's
Fourth 4%'s
Total..
For Conversion and Exchange:
First 4's—Coupon for Coupon
Second 4's—Coupon for Coupon
First 4's—Coupon for Registered....
Second 4's—Coupon for Registered..
Total
GRAND TOTAL..




4,150
40,952
40
38,060
181,400
745,454
120,098
1,130,154

$

Permanent Bonds Delivered
N o . of Pieces
3,476
32,326

Amount
$

438,900
8,435,450

440,600
8,448,000
10,150
4,567,350
48,592,200
99,957,650
19,403,850

25,224
142,534
572,870
26,106

4,550,550
48,492,150
99,886,050
6,438,000

$181,419,800

802,536

$168,241,100

47,700
880,000
700
187,450
4,297,750
10,672,900
15,285,900

302
2,175
7
1,605
10,435
49,093
33,563

$

161,826

$ 31,372,400

97,180

$ 32,814,750

32,362
138,354
1,510
7,637

$

433
3,967
9
1,766
15,570
72,057
68,024

179,863
1,471,843

$

3,656,300
16,852,050
198,400
1,126,450

27,873
112,213
1,040
5,200

$ 21,833,200
$234,625,400

146,326
1,046,042

$

77,150
904,300
550
252,250
4,664,050
11,251,700
15,664,750

3,647,150
16,795,800
202,900
1,098,000

$ 21,743,850
$222,799,700

INDEX
Text:
Directors and Officers
General Business Conditions
General Review
F i n a n c i a l R e s u l t s of Operation
Discount R a t e s
Changes in R a t e s
Progressive Discount R a t e
Discount Operations
Rediscounts with other F e d e r a l Reserve Banks
Acceptances
Investments
Classification of paper discounted
Rejections
Reserves and P e n a l t i e s
Reserve Position
Deficient Reserves
T r a n s i t Operations
P r i v a t e Wire Operations
Fiscal Agency Operations
Sub-Treasury Functions
'.
I\ote I s s u e s
F e d e r a l Reserve Notes
F e d e r a l Reserve B a n k Notes
Movement of Membership
Fiduciary Powers
P o w e r to Accept up t o 100 P e r Cent
Election of Directors
I n t e r n a l Organization
Personnel
Officers' Meetings
Auditing Department
Examination Department
Credit D e p a r t m e n t
Currency Department
E d u c a t i o n a l and R e c r e a t i o n a l
F e d e r a l Reserve Act Class
Choral Club
Athletics
Operations of B r a n c h e s
Omaha Branch
Denver B r a n c h
O k l a h o m a City Branch
Miscellaneous
New B a n k B u i l d i n g

PAGE
3
B
7
8
9
9
10
11
12
13
13
13
13
14
14
14
15
16
17
19
20
20
20
20
21
21
22
22
22
22
23
24
24
25
26
26
27
87
28
28
30
32
33
34

Exhibits:
1. Movement of E a r n i n g Assets d u r i n g the calendar year 1920
37-38
2. Movement of net deposit liability, F e d e r a l Reserve note circulation, Cash Reserves, and reserve r a t i o s d u r i n g the calendar
y e a r 1920
39-40
Schedules:
A. Comparative S t a t e m e n t of Resources and Liabilities
B. Profit and Loss Account
BB. E a r n i n g s and Expenses for calendar years 1919 and 1920
C. Discount Operations
CC. Rediscount T r a n s a c t i o n s with and for other F. R. B a n k s
D. Open M a r k e t Transactions—•
Bills Discounted—Bought (Bankers' Acceptances)
B a n k e r s ' Acceptances Acquired from other F. R. B a n k s




41-42
43-44
45-46
47
48
49
49

INDEX—Continued
E.
F.

C h a n g e s in Discount R a t e s and D a t e s Effective
50
Open M a r k e t T r a n s a c t i o n s —
United S l a t e s Securities
51-52
0 . Average of eacli class of E a r n i n g A s s e t s held, total e a r n i n g s
and a v e r a g e a n n u a l r a t e s t h e r e o n
52
H. Reserve Position—Net Deposits (Monthly A v e r a g e s )
53
1.
Membership—Additions and W i t h d r a w a l s
54
•I. M e m b e r - B a n k Deposits
55
Deficient R e s e r v e s
55
K. G o v e r n m e n t Account
.
56
\J. Kalance .statement F e d e r a l R e s e r v e Notes
57
M. F e d e r a l Keserve Notes Received and R e t u r n e d
58-59
N. F e d e r a l Reserve Notes
60
O. Official and Clerical Staff—Monthly P a y Roll E m p l o y e e s
61
P. Additional State B a n k Members
62
Q. National B a n k s G r a n t e d F i d u c i a r y P o w e r s d u r i n g 1920
63
R. C l e a r i n g s
64
S. Subscriptions to Certificates of I n d e b t e d n e s s for the y e a r 1920..
65
T. Certificates of Indebtedness—'Regular I s s u e s
66
U. Certificates of I n d e b t e d n e s s — T a x I s s u e s
67
V. T e m p o r a r y - P e r m a n e n t E x c h a n g e s — F i s c a l A g e n c y D e p a r t m e n t . .
6S