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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