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THIRTEENTH ANNUAL REPORT
OF THE

FEDERAL RESERVE BANK
OF KANSAS CITY
FOR THE YEAR ENDED DECEMBER 31, 1927

TENTH FEDERAL RESERVE DISTRICT




THIRTEENTH ANNUAL1REPORT
OF THE

FEDERAL RESERVE BANK
OF KANSAS CITY
FOR THE YEAR ENDED DECEMBER 31, 1927

TENTH FEDERAL RESERVE DISTRICT




LETTER OF TRANSMITTAL
February 6, 1928
Sir:
I have the honor to transmit herewith the thirteenth annual
report of the Federal Reserve Bank of Kansas City covering the
year 1927.
Respectfully yours,
M. L. McCLURE,
Chairman and Federal Reserve Agent
Hon. R. A. Young,
Governor, Federal Reserve Board,
Washington, D. C.




DIRECTORS AND OFFICERS
OF THE

FEDERAL RESERVE BANK OF KANSAS CITY
FOR 1928

DIRECTORS
CLASS A
CLASS B
FRANK W. SPONABLE (1928). Paola, Kans.
I. M. BERNARDIN (1928), Kansas City, Mo.
E. E. MULLANEY (1929), Hill City, Kans.
L. E. PHILLIPS (1929), Bartlesville, Okla.
C. C. PARKS (1930), Denver, Colo.
THOMAS C. BYRNE (1930), Omaha, Nebr.
CLASS C
WM. L. PETRIKIN (1928), Deputy Chairman, Denver, Colo.
M. L. MCCLURE (1929), Chairman, Kansas City, Mo.
E. M. BRASS, Grand Island, Nebraska
MEMBER FEDERAL ADVISORY COUNCIL
P. W. GOEBEL, Kansas City, Kansas
OFFICERS
M. L. MCCLURE, Chairman Board of Directors W. J. BAILEY, Govenor
!»* and Federal Reserve Agent
C. A. WORTHINGTON, Deputy Govenor
WM.'L. PETRIKIN, Deputy Chairman
J. W. HELM, Cashier
A. M. MCADAMS, Assistant Federal Reserve
JOHN PHILLIPS, JR., Assistant Cashier
Agent and Secretary
E. P. TYNER, Assistant Cashier
S. A. WARDELL, Auditor
G. E. BARLEY, Assistant Cashier
H. G. LEEDY, Counsel
M. W. E. PARK, Assistant Cashier
G. H. PIPKIN, Assistant Cashier

OMAHA BRANCH
DIRECTORS AND OFFICERS
A. H. MARBLE (1928), Cheyenne, Wyo.
WM. DEISING (1928), Omaha, Nebr.
W. E. HARDY (1929), Lincoln, Nebr.
T. L. DAVIS (1929). Omaha, Nebr.
R. O. MARNELL (1930), Nebraska City, Nebr. WAYLAND W. MCGEE (1930), Bennington. Nebr
L. H. EARHART (1928), Managing Director
WM. PHILLIPS, Assistant Cashier

G. A. GREGORY, Cashier

O. P. CORDILL, Assistant Cashier

DENVER BRANCH
DIRECTORS AND OFFICERS
H. W. FARR (1928), Greeley, Colo.
MURDO MACKENZIE (1928), Denver, Colo.
R. H. DAVIS (1929), Denver, Colo.
HENRY SWAN (1929), Denver, Colo.
HAROLD KOUNTZE (1930), Denver, Colo.
MERRITT W. GANO (1930), Denver, Colo.
J. E. OLSON (1928), Managing Director
S. A. BROWN, Cashier

JOHN A. CRONAN, Assistant Cashier

OKLAHOMA CITY BRANCH
DIRECTORS AND OFFICERS
NED HOLMAN (1928), Guthrie, Okla.
W. F. NICHOLS (1928), Tulsa, Okla.
AUSTIN MILLER (1929), Oklahoma City, Okla. WALTER FERGUSON (1929), Tulsa, Okla.
WM. M E E (1930), Oklahoma City, Okla.
E. J. MURPHY (1930), Clinton, Okla.
C. E. DANIEL (1928), Managing Director
R. O. WUNDERLICH, Cashier
R. L. MATHES, Assistant Cashier







THIRTEENTH ANNUAL REPORT
FEDERAL RESERVE BANK OF KANSAS CITY

P

RODUCTION of raw materials, on which conditions in the
Tenth Federal Reserve District are chiefly dependent, was
well maintained during the year just closed, and the value of
recorded production for the year of farm crops, including live stock,
dairy and poultry products sold, and the output of coal, oil, gas,
and other minerals, is estimated at $3,517,000,000, which is an increase of more than 10 percent over the value of such production
in 1926. This good volume of production in the principal industries of the District sustained a high level of activity in the banking business and in most lines of industry and trade, and was
reflected in greater bank deposits and in an unusually large distribution of goods to consumers.
Farm production in the District was larger in both quantity and
value than in any year since 1919. The corn crop of 622,644,000
bushels was more than double the size of the 1926 crop and was well
distributed over the District. The wheat crop fell below that of
1926 by approximately 40,000,000 bushels—over 13 percent, but
yields were generally fair except in sections where winter drouth
killed the plant or where floods and wet weather interfered with harvesting the grain. Cotton production is reported at 982,000 bales
as against 1,689,000 bales in 1926, but prices were so much better
that the cash realization was not greatly under that of the much
larger crop of the previous year. The crop in Oklahoma, the principal cotton producing state of the District, was large and of good
quality in the western part of the state, but in the southeastern part
of the state cool and wet weather in the spring and summer resulted
in partial to total losses over considerable territory. Increases over
the preceding year were shown for all other important crops except
oats and broom corn, which were but slightly smaller, and production figures based on the reports of the Departments of Agriculture of the United States and the several states show total farm production in the District for the year at 7.3 percent above the ten
year average, and a valuation, based on prices to producers, of
$1,422,000,000 as compared with $1,191,000,000 in 1926.
Outstanding developments in the livestock industry during the
year just closed were smaller marketings of meat animals from
the farms and ranges and a readjustment of live stock values, all.
of which resulted in a general betterment of conditions for the industry as a whole. The principal reduction in the market supply
was in beef cattle, and this was accompanied by a steady rise in
prices of all cattle to the highest levels attained in recent years.
The sheep branch of the industry continued on a sound basis, with
but slight reduction in receipts from those of the preceding year
and with closing prices about the same as a year earlier. The pro


THIRTEENTH

ANNUAL

REPORT

duction of wool was large and it sold at good prices. The hog supply
held close to that of 1926, but prices declined and at the close of the
year were substantially lower than those prevailing earlier. The
outlook for future market supplies of live stock, as reflected by the
Government's survey of live stock on farms and ranges as of January 1, 1928, is but slightly different from that of a year ago.
According to this survey, there were decreases during the year in
the number of cattle,, horses, and mules on farms and ranges in the
seven states whose areas or parts thereof comprise this District,
and increases in the number of milk cows and heifers, sheep and
lambs, and hogs. The average value of hogs shows a decline of
$4.28 per head between the two dates, but greater value per head is
shown for all other classes of live stock, the increased average
value of cattle being $11.05 per head. A summary of the figures
for the seven states, reported as of January 1, 1928, with those for
January 1, 1927, for comparison, follows:
NUMBER

All cattle
Milk cows and heifers
Hogs
Sheep and lambs
Horses and colts
Mules and colts.

Jan. 1, 1928
12,323,000
3,130,000
12,964,000
10,833,000
3,402,000
1,095,000

Jan. 1, 1927
12,662,000
3,110,000
11,930,000
9,517,000
3,551,000
1,143.000

VALUE

Jan. 1. 1928
$602,828,000
207,317,000
153,998,000
105,103,000
156,235,000
66,592,000

Jan. 1, 1927
$474,492,000
165,614,000
192,837,000
90.117,000
156,064,000
67.104,000

The processing of basic commodities into such foods as meat
flour, and sugar, and the conversion of other raw materials into such
items as gasoline, fuels, lubricants, lead, zinc, cement, and clay products, constitute the most important manufacturing activities of
the District from the standpoint of furnishing employment and
improving markets locally and also from the standpoint of contributing a substantial part of the country's total production of the respective products. The three largest manufacturing groups are meat
packing, flour milling, and oil refining. Of these groups, operations
of the meat packing plants during the past year, although of good
volume, were adversely influenced by the decrease in market supplies
of meat animals, but the mills of the District produced more flour
than in any previous year, and the manufacture of gasoline and
other oil products was maintained at a high level. Other manufacturing activities within the District continued a gradual expansion, both in volume of products and in lines of manufacture.
Mineral production compared very favorably with previous years.
The output of crude petroleum was the largest of record, the District's production of 343,101,000 barrels being 38.4 percent of the
total production in this country during 1927. Coal production was
adversely influenced by delay in the negotiation of contracts between operators and miners in the central competitive field and by
the recent strikes in some of the Colorado fields, and fell somewhat
below 1926 production. At the end of the year, however, operations
were on a high productive basis and the output was equal to market
requirements. The slackened market demand and consequent lower prices for zinc and lead ores curtailed the production and shipment of these minerals in the Missouri-Kansas-Oklahoma field to



6

FEDERAL

RESERVE

BANK

OF

KANSAS

CITY

a point below the output of the previous three years. Production
was in fair volume, however, and was greater than that of any year
prior to 1924. Colorado mines produced less gold and silver, but
these losses were more than offset by increased production of copper,
zinc, lead, and other metals. The production of cement, face brick,
glass, paints, clay products, and other items included in the minerals
group was uniformly heavy and compared favorbly with the prevvious year's record, some of these industries reporting small decreases
and others small increases.
Building and construction work continued in large volume. The
value of building permits reported for seventeen cities of the District
was slightly under the 1926 figure, but the value of contracts awarded, in the District, as reported by the F. W. Dodge Corporation,
was greater than in any previous year.
Based on reports of department stores throughout the District,
retail trade was in slightly greater volume than in 1926, and sales
in December were greater than in any month since 1920. Wholesale trade, taking the combined dollar totals of reporting houses in
six lines, was almost identical with the 1926 volume. Wholesale
trade reports, however, were mixed, some lines showing increases
and others decreases in volume of business done and dollar value
of sales. Sales of implements and farm machinery, reported by
leading distributors, were larger than in any recent year, and orders
for future delivery are greater than such orders booked at the end
of 1926.
The general banking situation in the District is believed to have
made further substantial improvement during the year, principally
through continued efforts of individual banks to improve slow and
questionable assets, and through the growing tendency of bankers
to apply sound credit principles to all new loans and investments.
The process of elimination of weak or unprofitable banks was continued at approximately the same rate maintained for the past several years, 185 banks having gone out of business through suspension, liquidation, or consolidation. On December 31, 1927, there
were, 3,593 banks operating within the District, which is approximately 900 less than the number of banks at the end of 1920.
During this seven year period approximately 1,400 banks have gone
out of business, about half of them through suspension and the
other half through consolidation or liquidation, and about 500
banks have opened for business, including a few instances of closed
banks reopened for operation under the original charters.
Deposits in the banks were maintained at a high level throughout
the year, available reports indicating that deposits in member banks
averaged higher than in any previous year. A natural consequence
of this condition has been that many banks have been actively seeking investments for their funds and that banks generally have been
able to meet all legitimate credit requirements of their customers.
The use of Federal reserve bank credit by member banks was very
largely restricted to temporary or seasonal requirements, as has
been the case during the past several years, and reached no great
volume at any time.
7



THIRTEENTH

ANNUAL

REPORT

OPERATIONS OF FEDERAL RESERVE BANK OF KANSAS CITY

Complete statistics of each Federal Reserve Bank are published
in the annual report of the Federal Reserve Board, and detailed
figures of the operations of this bank are omitted from this report
except that on the following pages are shown the statement of condition, at the beginning and end of the year, the distribution of loans
to member banks, and comparative tables of earning assets, income
and disbursements, and volume of operations.
COMPARATIVE STATEMENT OF CONDITION
Resources

Dec. 31. 1926

.Cash Reserves held by this bank against its deposits
and note circulation:
Gold held by the Federal Reserve Agent as part of the
collateral deposited by the bank when it obtains Federal
Reserve notes. This gold is lodged with the Treasurer
of the United States

$ 64,859,815.00

$ 60.745,990.00

2,124,840.45
6,238,982.37

2,488,996.14
7.299,469.48

30,512,314.48

27.498.488.85

4,992,761.00
$108,728,713.30

5,826.106.00
$103,859,050.47

$ 2,822.456.52

$ 3,060,125.73

$ 1,483,812.00
5.128,652.55
18.294,960.03

$ 3,229.532.00
6,404,780.66
7,891,207.90

29,224.900.00
$ 54.132.324.58

38,341,600.00
$ 55,867,120.56

$ 4,458,936.12
44.002,751 38
368,753.70
152.388.90
$ 48,982.830.10
$214,666,324.50

$ 4,307,959.76
46.470.789.34
285,902.85
147,626.40
$ 51,212.278.35
$213,998,575.11

Gold redemption fund in the hands of the Treasurer
of the United States to be used to redeem such Federal
Reserve notes as are presented to the Treasury for redemption
Gold and gold certificates in vault
Gold in the gold settlement fund lodged with the Treasurer
of the United States for the purpose of settling current transactions between Federal reserve districts
Legal tender notes, silver, and silver certificates in the
vaults of the bank (available as Reserve only against
deposits)
Total cash reserves
Non-reserve Cash, consisting largely of National
Bank notes and minor coin
Loans and Investments:
Loans:
On the security of obligations of the United States
(including adjusted service certificates)
By the discount of commercial or agricultural paper
or acceptances
Acceptances bought in the open market
United States Government bonds, notes, and certificates
of indebtedness
Total loans and investemnts
Miscellaneous Recources
Bank premises, less reserves
Checks and other items in process of c ollection
Due from suspended banks
AH other miscellaneous resources
Total miscellaneous resources
Total resources




Dec. 31. 1927

FEDERAL

RESERVE

BANK

OF

KANSAS

CITY

COMPARATIVE STATEMENT OF CONDITION
Dec. 31, 1926

Liabilities

Dec. 31, 1927

Currency in Circulation:
Federal Reserve notes in actual circulation, payable on
demand. These notes are secured in full by gold and
discounted and purchased paper

$ 72,523.100.00

$ 67,188,875.00

$ 72,523.100.00

$ 67,188,875.00

Reserve deposits maintained by member banks as legal
reserves against the deposits of their customers

$ 86,728,345.93

$ 95,045,794.70

United States Government deposits carried at the Reserve
Bank for current requirements of the Treasury

1,939.949.75

2,081,997.34

Other deposits

1,197,702.56

741,005.12

$ 89,865.998.24

$ 97,868,797.16

$ 38,627,555.29

$ 35,283,837.46

Total currency in circulation

Deposits:

Total deposits

Miscellaneous Liabilities
Deferred items, composed mostly of uncollected checks
on banks in all parts of the country. Such items are
credited as deposits after the average time needed to
collect them elapses, ranging from 1 to 7 days

423,440.36

376.537.63

$ 39,050,995.65

$ 35,660,385.09

$

$

All other miscellaneous liabilities
Total miscellaneous liabilities

Capital and Surplus:
Capital paid in, equal to 3 percent of the capital and
surplus of member banks
Surplus—that portion of accumulated net earnings which
the bank is legally permitted to retain

4,196,750.00

4,234,850.00

9,029,480.61

9,045,677.86

Total rapital and surplus

$ 13,226,23061

$ 13,280,527.86

Total Liabilities

$214,666,324.50

$213,998,575.11

HOLDINGS O!

; ASSETS. EARNINGS THEREFROM. AND
ANNUAL RATES OF EARNINGS
United States
Government
Securities

Other
Earning
Assets

Total

688,661
5,183,349
16,819,307
14,306,927
10,713,383

$ 23,346,470
24,512,289
30,781,256
33,035,187
31,549,966

$ 45,912
94,273
585,184
182,007
0

$ 63,942,633
49,041,958
57,238.628
63,599.894
55,327,990

1,793.861
859.534
362,177
643,032
500.769

29,361
158.580
538,179
507.513
375,715

971,271
947,929
1,117,964
1,213,542
1,106,482

2,066
3,093
20,795
8,077
0

2,796,559
1,969,136
2,039,115
2,372,164
1,982,966

4.50
4.46
4.00
4.00
3.83

4.26
3.06
3.20
3.55
3.51

4.16
3.87
3.63
3.67
3.51

4.50
3.28
3.55
4.44
0

4.37
4.02
3.56
3.73
3.58

Year

Bills
Discounted

Daily
Average
Holdings

1923
1924
1925
1926
1927

$ 39,861,590
19,252.047
9.052,881
16,075,773
13,064.641

Earnings

1923
1924
1925
1926
1927

Average
Rates of
Earnings
(percent)

1923
1924
1925
1926
1927




Bills
Purchased
$

THIRTEENTH

ANNUAL

REPORT

INCOME AND DISBURSEMENTS
1926

1927

Earnings:
From loans to member banks and paper discounted for them

$ 643,032.29

$ 500,769.06

507,512.94

375,715.42

1,213,542.40

1,106,482.07

From acceptances owned
From United States Government Obligations owned

24,203.02

Income from rented space

17,748.46

230,164.76

From penalties for deficient reserves

234,688.90

58,884.91

69,534.06

$2,677,340.32

$2,304,937.97

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

$1,622,654.71

$1,624,440.65

For Federal Reserve currency, mainly the cost of printing new
notes to replace worn notes in circulation, and to maintain
supplies unissued and on hand

60.274.15

52,774.13

Depreciation and replacement reserves on buildings, fixed
machinery and equipment

209,308.64

168,188.36

Other earnings
Total earnings

Deductions from Earnings:

Other deductions, net, including furniture and equipment
purchased

Net income available for dividends, additions to surplus, and
payment to the United States Government

28,633.81

44,809.27

$1,920,871.31

Total deductions from earnings

$1,890,212.41

$ 756,469.01

$ 414.725.56

$ 252,763.70

$ 252,753.04

50,370.53

16,197.25

Distribution of Net Income:
In dividends paid to member banks, at the rate of 6 percent
on paid-in capital
In addition to surplus—The bank is permitted by law to accumulate out of net earnings, after payment of dividends,
a surplus amounting to 100 percent of the subscribed capital;
and after such surplus has been accumulated to pay into surplus each year 10 percent of the net income remaining after
paying dividends
In franchise tax—any net income remaining after paying
dividends and making additions to surplus (as above) is
paid to the United States Government as a franchise tax

453,334.78

145,775.27

$ 756,469.01

Total net income distributed

$ 414.725.56

DISTRIBUTION OF LOANS

State

Colorado
Kansas
•Missouri
Nebraska
*New Mexico
•Oklahoma
Wyoming
Totals

Number of
Banks Accommodated

Number of
Offerings
Accepted

Amount Loaned
During 1927

Amount Loaned
During 1926

60
88
20
110
3
89
11

758
1,082
453
1,740
49
745
63

$129,651,422.74
23,788,649.59
273,703,434.16
97,865,950.69
655,414.70
23,048.943.55
692,666.92

$110,578,786.36
23,070,914.85
395,671,822.43
122,761,412.79
292,049.77
29,528,972.98
785,687.21

381

4,890

$549,406,482.35

$682,689,646.39

* Within District No. 10




10

FEDERAL

RESERVE

BANK

OF

KANSAS

CITY

GROSS A N D N E T EARNINGS, A N D DISTRIBUTION OF N E T EARNINGS
SINCE ORGANIZATION
Franchise
Transferred
Tax Paid to
Period
Gross
Net
Dividends
to
United
Surplus
States
Gov't
1914 to 1919
$ 9,898,760
$ 969,694
$6,116,033
$ 7.085,727
$
5,540,681
257,672
3,042,781
1920
7,409,987
$2,240,228
3,056,096
268,620
486,918
1921
5,712,858
2,300,558
783,036
275,655
(1) 157,432
1922
3,094,660
664.813
347,711
275,313
7,240
1923
2,993,919
65,158
(2)
253,182
265,697
(3) 518.879
1924
2,262,910
282,921
258,427
2,449
1925
2,309,985
22,045
756,469
252,764
50,371
1926
2,677,340
453,335
414,725
252,753
16,197
1927
2.304.9J8
145,775
Totals
(1)
(2)
(3)

$38,665,357

$18,014,184

$3,076,595

$9,045,678

$5,891,912

Net reduction in surplus account after charging surplus and crediting franchise tax with
$208,170.00 paid as an additional franchise tax for 1921.
Deficit in earnings before payment of dividends.
Deficit in earnings after payment of dividends, charged to surplus account.

VOLUME OF OPERATIONS IN PRINCIPAL DEPARTMENTS
Year

Number of
pieces

Notes discounted or
rediscounted for
Member banks

1923
1924
1925
1926
1927

67,667
55,574
28,883
36.304
27,718

Currency received
and counted

1923
1924
1925
1926
1927

48,265,119
48,617,887
51.354,987
53,737,809
58,901,356

256,299,840
243,904,537
256.838,800
263,949,050
279,059,600

Coin received
and counted

1923
1924
1925
1926
1927

66,187,747
63,203,382
63,559,440
65,855,310
66,608,883

Checks handled

1923
1924
1925
1926
1927

58,567,542
61.975,039
68.301.676
70,500.000
70,387,000

Collection items
handled

1923
1924
1925
1926
1927

237,504
280,757
264,717
299,489
323,042

10,256,881
10,800,194
12,142,654
12,194,620
12,500,191
8,817,168,509
9,786.001,503
11.061,945,198
11,787,519,000
11,559,626,000
193,651,786
230,103,325
234,036,442
260,933,118
276,116,113

United States Government Coupons Paid

1923
1924
1925
1926
1927

2,863,313
2,141,022
1,961,171
1,807.616
1,731,652

20,684,367
18,060,109
18,657,628
19,070,292
16,922,224

United States Securities—Issues, redemptions, and exchanges by Fiscal
Agency Dep't
Transfers of Funds

1923
1924
1925
1926
1927

9,031,743
894.427
384,886
200,581
321,855

1923
1924
1925
1926
1927

113.264
119,412
122,373
123,864
129,900

317.045,087
161,888,845
146,542,867
112,179,066
261,427,447
3,189,811.978
4,358.822,341
5,075,400,624
5.533,674,491
6,164.713,830




11

Amount
$

901,125,313
227,743,605
298,936,616
682.689,646
549,406,482

THIRTEENTH

ANNUAL

REPORT

GENERAL COMMENTS ON OPERATIONS

The principal items of assets and liabilities were reasonably constant throughout the year, such changes as developed being due to
seasonal influences or to investment policy rather than to any unusual economic conditions in the District. Federal ReserveNotes
in circulation, total deposits, and each group of earning assets averaged lower for the year than in 1926, but the average of member
banks' reserve deposits for the year was slightly greater than for the
previous year.
Daily average holdings of bills discounted, bills purchased, and
United States Government sucurities were something over $8,000000 less than in 1926. Of this reduction $3,000,000 was in the item
of bills discounted, reflecting to some extent an easier cash position
in the member banks although the dollar amount of the reduction •
is not large enough to be of great moment. The number of individdual banks making use of Federal Reserve Bank credit during the
year was 381 as compared with 453 in 1926, no great change being
shown for any of the states of the District except Oklahoma. The
great reduction in the distribution of credit to Oklahoma banks is a
consequence of very favorable crop conditions during the past
two years in the western half of that state.
Expenses of operation for the year, including reserves for replacement, furniture and equipment purchased, and other deductions from earnings were somewhat smaller than total deductions
from earnings for 1926. Gross earnings and net income, how
ever, were substantially less than the previous year, due principally
to smaller average holdings of all classes of earning assets and in some
degree to the reduction in our discount rate on July 29 from 4 percent to 3>£ percent, to slightly smaller rates of return on acceptances and United States Government securities owned, and to the
decrease in the amount of penalties assessed for deficient reserves.
Deficiencies in the legal reserves of member banks were substantially smaller than in 1926 and all prior years back to and including
1917. Net earnings were at the rate of 9.8 per cent on average
paid in capital, 3.1 percent on average capital and surplus, and
0.4 per cent on average capital, surplus, and deposits, and were
sufficiently in excess of the amount required for the usual 6 per
cent dividends to stockholding member banks to permit payment
of $145,775.27 franchise tax to the United States Government and
an addition to surplus of $16,197.25. Franchise tax payments
made to the Government by this bank since its organization now
aggregate $5,891,912.66
The service extended to member banks in the safekeeping of their
securities has shown a substantial expansion each year, the number
of member banks for whom securities were held at the close of the
year being 604, as compared with 526 at the end of 1926 and 477 at
the end of 1925. The volume of work and the tremendous
12



FEDERAL

RESERVE

BANK

OF

KANSAS

CITY

amount of detail incident to this service to member banks
is indicated by the fact that the safekeeping departments of
the bank and branches handled 156,267 pieces of bonds and other
securities during the year, and detached, entered for collection, and
credited the accounts of member banks with the proceeds of 196,992
interest coupons.
The volume of operations in the principal departments of the
head office and the Omaha, Denver, and Oklahoma City branches
was heavier than in 1926 and prior years, increased volume over
1926 being shown for all work measured by number of pieces handled
except that there were slight reductions in the number of checks
handled and the number of Government coupons paid and a. substantial reduction in the number of notes discounted or rediscounted
for member banks.
The discount rate of this bank, for all classes of paper and all
maturities, was maintained at 4 percent from January 1 to July 28,
inclusive, and at 3>£ per cent for the balance of the year.

MOVEMENT OF MEMBERSHIP

The number of member banks in the Tenth Federal Reserve
District decreased from 1,007 on December 31, 1926, to 977 on December 31,1927. The number of member banks in each state and
the changes during the year are shown in the following summary:

STATE

Colorado
Kansas
•Missouri
Nebraska
•New Mexico
•Oklahoma
Wyoming

Totals

Membership on
Dec. 31.
1926

ADDITIONS
Nat'l
Banks

State
Banks

WITHDRAWALS

Total

Nat'l
Banks

State
Banks

Total

131
263
49
173
11
346
34

1
3
0
5
0
1
0

0
1
0
0
0
0
1

1
4
0
5
0
1
1

4
3
0
12
1
17
3

0
0
1
1
0
0
0

4
3
1
13
1
17
3

1.007

10

2

12

40

2

42

Membership on
Dec. 31.
1927

128
264
48
165
10
330
32

977

•Within District No. 10

Changes in state bank membership consisted of admission to
membership of the Fidelity Savings State Bank, Topeka, Kansas,
and the First Security Bank, Rock Springs, Wyoming, and of termination of the membership of two banks, one through suspension
and one as provided by law.




13

THIRTEENTH

ANNUAL

REPORT

The ten national banks added to the membership consisted of one
new organization and of nine conversions of state banking institutions.
Withdrawals of forty national banks resulted from two consolidations with other national banks, ten insolvencies, and twentyeight voluntary liquidations.
PERSONNEL
ELECTION AND APPOINTMENT OF DIRECTORS

C. C. Parks, Vice President of the First National Bank, Denver,
Colorado, was reelected Class A Director by member banks of
Group I, for the term expiring December 31, 1930.
Thos. C. Byrne, President of the Byrne and Hammer Dry Goods
Company, Omaha, Nebraska, was reelected Class B Director by
member banks of Group 2, for the term expiring December 31, 1930.
E. M. Brass, stockman and farmer, Grand Island, Nebraska, was
appointed by the Federal Reserve Board as Class C Director for
the term expiring December 31, 1930.
The following were appointed as Directors of the Omaha, Denver,
and Oklahoma City Branches, for terms expiring on December 31
of the years indicated:
OMAHA BRANCH—L. H. Earhart, Managing Director Omaha
Branch, 1928; R. O. Marnell, Cashier of the Merchants National
Bank, Nebraska City, Nebraska, 1930; and Wayland W. McGee,
farmer and stockman, Bennington, Nebraska, 1930.
DENVER BRANCH—J. E. Olson, Managing Director Denver
Branch, 1928; Harold Kountze, Vice President of the Colorado
National Bank, Denver, Colorado, 1930; and Merritt W. Gano,
clothing merchant, Denver, Colorado, 1930.
OKLAHOMA CITY BRANCH—C. E. Daniel, Managing Director
Oklahoma City Branch, 1928; Wm. Mee, President of the Security
National Bank, Oklahoma City, Oklahoma, 1930; and E. J. Murphy,
stockman and farmer, Clinton, Oklahoma, 1930.

MEMBER OF ADVISORY COUNCIL

P. W. Goebel, banker, Kansas City, Kansas, was reappointed by
the Board of Directors to serve as member of the Federal Advisory
Council from the Tenth Federal Reserve District for the year 1928.
14



FEDERAL

RESERVE

BANK

OF

KANSAS

CITY

OFFICERS AND EMPLOYEES OF THE BANK AND BRANCHES

The Federal Reserve Board reappointed M. L. McClure as
Federal Reserve Agent and Chairman of the Board of Directors,
appointed Wm. L. Petrikin as Deputy Chairman of the Board of
Directors, and redesignated A. M. McAdams as Assistant Federal
Reserve Agent, all for the year 1928. All other officers of the bank
and branches were reelected by the Board of Directors for the year
1928, and Oliver P. Cordill was newly elected as an Assistant Cashier of the Omaha Branch.
At the close of the year the bank and branches had a total of 20
officers and 586 other employees, as compared with 21 officers and
559 other employees at the close of 1926.




15