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*-•> 0 Eighth Annual Report Federal Reserve Bank of New York For the Year Ended December 31, 1922 * Second Federal Reserve District Eighth Annual Report Federal Reserve Bank of New York For the Year Ended December 31 1922 Second Federal Reserve District LETTER OF TRANSMITTAL FEDERAL RESERVE BANK OF NEW YORK New York, January 17, 1923. I have the honor to submit herewith the eighth annual report of the Federal Reserve Bank of New York, covering the year GENTLEMEN: Respectfully, PIERRE JAY, Chairman and Federal Reserve Agent. FEDERAL RESERVE BOARD, Washington, D. C. Table of Contents PAGE Directors a n d Officers 4—5 I. Credit conditions in the District in 1922 6-11 II. Bank operations Statement of Condition Income and Disbursements Earning Assets Federal Reserve Currency Reserves and Reserve Position Collections and Clearings Relations with Member Banks Custody of Securities Relations with Foreign Banks Organization of the Bank Bank Premises Buffalo Branch 12-39 12 13-17 18-24 25-26 27-28 29-31 32-34 34 34 35-37 38 39 III. Fiscal agency operations 40-44 Appendix 45-62 Federal Reserve Bank of New York DIRECTORS AND OFFICERS, JANUARY 1, 1923 DIRECTORS Term Expires Dec. 31 Class Group A 1 GATES W. MCGARRAH, New York City 1925 Chairman, The Mechanics and Metals National Bank A 2 ROBERT H. TREMAN, Ithaca, N. Y. . . . . . 1923 President, The Tompkins County National Bank A 3 CHARLES SMITH, Oneonta, N. Y 1924 President, The Citizens National Bank B 1 OWEN D. YOUNG, New York City 1925 Chairman, General Electric Company B 2 RICHARD H. WILLIAMS, Madison, N. J 1923 Williams & Peters, New York City B 3 FRANK L. STEVENS, North Hoosick, N. Y C C President, Stevens and Thompson, Inc. PIERRE JAY, New York City, Chairman WILLIAM L. SAUNDERS, Plainfield, N. J., Deputy Chairman . Chairman, Ingersoll-Rand Company C CLARENCE M. WOOLLEY, New York City 1924 . 1925 1923 1924 President, American Radiator Company MEMBER OF FEDERAL ADVISORY COUNCIL PAUL M. WARBURG, New York City OFFICERS General Officers BENJ. STRONG, Governor J. HERBERT CASE, Deputy Governor GEORGE L. HARRISON, Deputy Governor Louis F. SAILER, Deputy Governor EDWIN R. KENZEL, Deputy Governor DUDLEY H. BARROWS, Secretary JAY E. CRANE, Assistant Secretary L. RANDOLPH MASON, General Counsel JESSE HOLLADAY PHILBIN, Assistant General Counsel Senior Officers GILBERT E. CHAPIN, Controller of Loans RAY M. GIDNEY, Controller at Large ARTHUR W. GILBART, Controller of Cash and Controller of Collections LAURENCE H. HENDRICKS, Controller of Fiscal Agency Functions JOSEPH D. HIGGINS, Controller at Large J. WILSON JONES, Controller of Administration EDWIN R. KENZEL, Controller of Investments, Pro tern. LESLIE R. ROUNDS, Controller of Accounts DIRECTORS AND OFFICERS, JANUARY 1, 1923—Continued Junior Officers CHARLES H. COE, ADOLPH J. LINS, Manager, Collection Department Manager, Check Department JAY E. CRANE, WALTER B. MATTESON, Manager, Foreign Department EDWIN C. FRENCH, Manager, Cash Department Manager, Certificates of Indebtedness Department and Manager, Securities Department BETHUNE M. GRANT, JOSEPH L. MORRIS, Manager, Government Bond Department Manager, Credit Department WILLIAM A. HAMILTON, HENRY R. MURRAY, Manager, Building Maintenance Department Manager, Securities Custody Department HOWARD M. JEFFERSON, ROBERT M. O'HARA, Manager, Personnel Development Manager, Bill Department Department JAMES M. RICE, ALAN K. LAUCKNER, Manager, Methods and Supplies Department Manager, Accounting Department STEPHEN S. VANSANT, Manager, Discount Department I. WARD WATERS, Manager, Office Service Department and Manager, Personnel Service Department Auditor FRANCIS OAKEY, General Auditor EDWARD L. DODGE, Manager, Auditing Department FEDERAL RESERVE AGENT PIERRE JAY, Federal Reserve Agent SHEPARD MORGAN, Assistant Federal Reserve Agent CARL SNYDER, General Statistician W. RANDOLPH BURGESS, WILLIAM H. DILLISTIN, Manager, Reports Department Manager, Bank Examinations Department BUFFALO RRANCH Directors E. J. BARCALO, THOMAS E. LANNIN, President, Barcalo Manufacturing Company, Buffalo Vice-President, Lincoln-Alliance Bank, Rochester FRED J. COE, ELLIOTT C. MCDOUGAL, Vice-President, Power City Bank, Niagara Falls President, Marine Trust Company, Buffalo JOHN A. KLOEPFER, HARRY T. RAMSDELL, President, Liberty Bank of Buffalo President, Mfrs. and Traders National Bank, Buffalo WALTER W. SCHNECKENBURGER, Manager Officers WALTER W. SCHNECKENBURGER, Manager HALSEY W. SNOW, JR., Cashier CLIFFORD L. BLAKESLEE, Assistant Cashier ELMER L. THEOBALD, Assistant Cashier PER CENT, 150 / J\ 1919 AVERAGE \ J 50 1919 1921 1920 1919 19ZZ Production in Basic Industries, Allowance has been made for seasonal fluctuations 1919 Average = 100 per cent. PERCENT. 1921 1922. Dollar Value of Wholesale Trade in the Second District, Allowance has been made for seasonal fluctuations 1919 Average = 100 per cent. RATE 300 y 200 6 r\\V \ 1913 AVERA# 100 1920 3 0 1919 1920 1921 Department of Labor Index Number of Wholesale Commodity Prices, 1913 Average = 100 per cent. 1919 192.0 1921 1922 Open Market Interest Rate on 4 to 6 Months Commercial Paper in New York City CREDIT CONDITIONS IN THE DISTRICT IN 1922 Production, Trade and Prices T HE year 1922, seen from the standpoint of this Federal Reserve district, was a year of transition. At its beginning the tendencies of 1921 were still in process; interest rates, prices of goods at wholesale and retail, and wages of unskilled labor were declining. At the same time, however, other new tendencies had begun to develop which later became the main characteristics of 1922; production, railway traffic and wholesale trade were increasing, and unemployment, which had been heavy and widespread during 1921, was gradually being reduced. As the year advanced, notwithstanding the adverse effects, for the time being, of prolonged strikes of coal miners, railway shopmen and others, the volume of production in basic industries throughout the country increased until in a number of instances it equaled or surpassed the maximum of former years, and the output of finished products in many branches of manufacture also reached very large proportions. The dollar value of the wholesale trade of the district and of the retail trade of the country, reported both by department stores in the cities and mail order houses dealing largely with rural districts, was higher in the latter part of 1922 than in the corresponding months of 1921. Freight movement on the railroads also reached nearly to maximum. Labor shortages developed in many sections of the country and the wages of unskilled labor and the earnings of factory workers increased. The prices of commodities, particularly of farm products, rose, but at the close of the year the prices of goods the farmer bought were still relatively higher than the prices of products he sold. Interest rates in the open market, reflecting the increased demand for funds implied in the foregoing, turned upward in the early autumn and in December were nearly at the level of the preceding January. Some of these movements are shown in the diagrams on the opposite page. Banking Conditions The movements of production, trade and prices were closely interrelated, as to both cause and effect, with the banking developments of the year. Primary among these was the continued inflow 8 EIGHTH ANNUAL REPORT of gold, which entered the country largely through the port of New York. Following the net receipt during 1921 of $667,000,000 of gold, $238,000,000 additional was received in 1922. While the gold imports were smaller in 1922 and tended to decline as the year advanced, they exerted nevertheless a more powerful influence upon banking conditions external to the Reserve Banks than did the larger flow of the year before. In 1921 the gold flow found the member banks of the country still much indebted to the Reserve Banks, and the gold assisted largely in liquidating that indebtedness. But in 1922, particularly after the first weeks of the year, the member banks owed relatively little to the Reserve Banks; and when the gold in natural course found its way into the reserves of the Reserve Banks, so much of it as was not used still further to reduce debt, served as the basis for a possible expansion of member bank loans and deposits to a volume several times the amount of the gold received. The result was a very material increase in the lending power of the banks. A second development tending in the same direction was the refunding of bank loans and early-maturing debt into longer-term obligations. The Treasury issued $2,511,000,000 of 2 ^ to 4 year notes and $764,000,000 of 25-30 year bonds for the purpose of refunding the Government's early-maturing debt, and it is estimated that during 1922 domestic bonds and notes were placed through the New York market amounting to $5,400,000,000, which were largely for the purpose of retiring bank loans or short-time notes, or for refunding other maturing obligations. In this way much credit which had been supplied by the banks and the discount market was supplied through the long-term investment market, and the banks and discount market were relieved accordingly. Closely allied with the foregoing was the continued reduction of the amount of bank credit required in the ordinary course of conducting business. The collection of amounts due, the lessened business activity of 1921, and the lower cost of materials and labor had enabled corporations and individuals to reduce their indebtedness at the banks and in many instances to build up balances and make investments for future use. The combined effect of these three factors, as well as of others, was a large increase in banking power, which was reflected in a rise of deposits in member banks in New York City to a point about equal to that reached in 1920, and in member banks in leading cities throughout the country to a point somewhat above that reached in 1920. In that year the credit-making machinery of the country was under heavy strain, and the lending facilities of this and other Reserve Banks were utilized nearly to the maximum. In 1922, however, there was no such demand upon the credit-making FEDERAL RESERVE BANK OF NEW YORK 9 machinery, either of the banks or the Reserve Banks; on the contrary, the member banks, particularly in the first half of the year, were obliged to seek employment for their funds otherwise than in loans to customers. In consequence, the member banks both in New York City and elsewhere in the country increased their investments in obligations of relatively long maturity, both Government and corporate, to an amount higher than at any time since the early part of 1919. The reflection of such purchases by banks and other investors was seen in the activity of the bond market, where bond prices continued to advance until late in the summer. Coincident also with the increase in bank investments, was a rise in the volume of loans secured by stocks and bonds to amounts, both in New York City and elsewhere, which were much above those reached in the early winter of 1919 and 1920, when such loans reached their previous maximums. 1919 1920 1921 1922 1919 1920 1921 1922' Movement of Commercial Loans and Total Investments of Reporting Member Banks in Principal Cities throughout the United States and in New York City» partially estimated previous to 1 9 2 1 . Commercial Loans are All Loans except Loans on Stocks and B o n d s The rising commercial activity of the country did not result in a demand upon the banks for commercial loans until the summer and early autumn and then the demand did not reach large proportions. Commercial concerns in the main were still employing their own funds or using the proceeds of investments made during the period of inactive business. But the decline in the volume of commercial loans at the banks, which had been practically continuous EIGHTH ANNUAL REPORT 10 since the autumn of 1920, came to an end, and an upward movement began, attended by a slight advance in interest rates. Some of these movements are illustrated in the accompanying diagrams. Reserve Bank Credit Though the $238,000,000 of gold received in 1922 entered the country largely through the port of New York and found its way to the New York Reserve Bank, it gradually penetrated throughout the country in the regular course of business transactions. It had the effect upon the Reserve Banks of largely increasing their gold reserves. In the early part of the year, also, when lower prices called for a smaller volume of hand-to-hand currency, Federal Reserve notes returned to the Reserve Banks and served to reduce to a very small amount the loans to member banks still remaining. The reduction in note circulation and the reduction in discounts and advances, both of this bank and of the system as a whole, were very nearly equal; and much of the newly received gold was therefore available as reserve against increased deposits in the member banks. Member banks borrow from the Reserve Banks primarily for the purpose of maintaining at the legally required amount their reserve deposits, upon which they draw for currency, for gold to be exported, and for other purposes. In 1922 the member banks were enabled in general to maintain their deposits at the Reserve Banks at the legally required amount with only infrequent borrowing. This was in contrast with the experience of those months of 1919 FEDERAL RESERVE BANK of NEW YORK ALL FEDERAL RESERVE BANKS 1919 1920 1921 1922 1919 1920 1921 \9ZZ Total Earning Assets, Note Circulation, and Total Reserves of All Federal Reserve Banks and of the Federal Reserve Bank of New York FEDERAL RESERVE BANK OF NEW YORK 11 and 1920 when gold was moving out of the country. The banks, already largely in debt to the Reserve Banks, were then obliged still further to increase their borrowings so as to provide reserve in place of the gold they withdrew for export. In the latter part of 1922, as the seasonal requirements for currency and the demands of business increased, there was some recurrence of borrowing, particularly to meet the demands of the end of the year, but at no time did the loans to member banks rise appreciably higher than the small amount in effect at the beginning of 1922. The purchases by the New York Reserve Bank of bankers acceptances and Government obligations in the open market are described in detail elsewhere in this report. During the early part of the year, both at this bank and at other Reserve Banks, such purchases tended to increase, approximating the amount held in 1920; and later in the year, when the volume of such purchased paper declined, the reduction was largely offset by an increase in the loans to member banks. The investment policy had the effect of maintaining the supply of funds available in the open market at a fairly stable level. In the main, the credit-making powers of the Reserve Banks, which in the years of emergency had been used so heavily,were but lightly utilized in 1922. The credit conditions of the year, outlined above, made such employment unnecessary save over short periods to meet temporary requirements. II BANK OPERATIONS STATEMENT OF CONDITION The comparative statement of condition of the Federal Reserve Bank of New York as of December 31, 1922, and December 31, 1921, is given in brief form below. A statement in greater detail and with notes explanatory of the various items appears in the appendix, pages 46 and 47. RESOURCES Dec. 31, 1922 Dec. 31, 1921 $956,784,070.26 31,313,929.70 $1,081,203,974.67 50,335,841.00 988,097,999.96 1,131,539,815.67 168,235,591.11 156,013,679.05 16,053,362.30 53,066,308.08 60,863,602.89 167,252,450.00 72,593,292.33 103,525,400.00 412,405,006.30 385,198,679.46 146,433,874.24 114,465,872.49 $1,546,936,880.50 $1,631,204,367.62 CASH RESERVES: Gold Legal tender notes, silver, etc Total reserves LOANS AND INVESTMENTS: Loans to member banks: Secured by Government obligations Secured by discount of commercial paper or agricultural paper or acceptances.... Bills and securities purchased: Acceptances United States securities Total loans and investments (or earning assets) ALL OTHER RESOURCES (mostly uncollected checks) Total resources LIABILITIES CURRENCY IN CIRCULATION: Federal Reserve notes Federal Reserve bank notes Total currency in circulation $597,071,293.50 $663,363,181.00 20,559,200.00 597,071,293.50 683,922,381.00 749,005,902.75 517,656.11 11,439,182.74 726,097,832.01 32,616,430.48 14,450,428.68 760,962,741.60 773,164,691.17 100,414,872.15 28,688,450.00 59,799,523.25 86,806,318.31 27,113,850.00 60,197,127.14 $1,546,936,880.50 $1,631,204,367.62 DEPOSITS: Reserve deposits of member banks Government deposits All other deposits Total deposits MISCELLANEOUS LIABILITIES (mostly checks on deferred credit) CAPITAL SURPLUS Total liabilities 12 FEDERAL RESERVE RANK OF NEW YORK 13 INCOME AND DISBURSEMENTS A comparative summary of the income and disbursements of the Federal Reserve Bank of New York for the last two years is given in the following table. A more detailed statement appears in the appendix, page 48. 1922 1921 EARNINGS: From rediscounts and advances to member banks From acceptances owned From United States Government securities owned Other earnings $3,970,209.76 1,619,512.13 5,643,385.44 108,211.44 $30,762,021.40 1,829,665.00 1,955,969.96 157,282.33 $11,341,318.77 $34,704,938.69 $6,223,404.61 553,124.78 $7,076,187.58 1,091,591.96 843,196.31 443,326.95 Total deductions from earnings $7,619,725.70 $8,611,106.49 Net income $3,721,593.07 $26,093,832.20 $1,652,138.30 206,945.48 1,862,509.29 $1,608,721.16 3,782,671.10 20,702,439.94 $3,721,593.07 $26,093,832.20 Total earnings DEDUCTIONS FROM EARNINGS: For current bank operation Cost of Federal Reserve currency For self-insurance and other reserves, depreciation, etc DISTRIBUTION OF N E T INCOME: Dividends paid Added to surplus Paid United States Government as franchise tax Total The gross income of the bank in the last three years has declined from $60,525,000 in 1920 to $34,705,000 in 1921, and $11,341,000 in 1922, reflecting the lessening credit demands in the last two years. Whereas in 1921 demands upon the bank were heavy during the early months of the year, during 1922 demands were light throughout the year. Rates of discount at 43^ and 4 per cent, were also lower than in the two preceding years. The cost of conducting the business of the bank, including the supply of currency, was reduced from $8,168,000 in 1921 to $6,777,000 in 1922, a reduction of 17 per cent. There was not, however, a corresponding reduction in the volume of work done; on the contrary, in a number of the largest departments, such, for example, as those handling the collection of checks, notes and drafts, and the custody of securities, the volume of work increased; and the work involved in handling cash did not diminish. Also, as in the latter half of 1921, the bank assumed the major portion of the expense of handling Government certificates, bonds and notes, formerly reimbursed by the Treasury Department. The volume of 14 EIGHTH ANNUAL REPORT work in the departments handling the discounts and other earning assets of the bank was less, but even at the maximum of former years the expenses of these departments amounted to a relatively small proportion of the total operating costs of the bank. The main operating saving of the year was the result of modified administrative methods, based on experience not available during the period of the bank's rapid growth, which permitted the bank to operate with a reduced staff through most of the year. In many instances vacancies through resignations were not filled, and in other instances such vacancies were filled by the successive promotion of employees already in the service of the bank, thereby leaving vacancies to be filled by new employees of junior grade at a rate of compensation suitable for beginners. In consequence the average rate of pay declined through the year. In addition to the foregoing, there was a reduction of $538,000 in the cost of printing Federal Reserve notes owing in some degree to the smaller circulation during most of the year, but mainly to the fact that the reserve supply held in Washington and in the vaults of the bank had been increased during 1921 to a point where it was necessary to print chiefly for current requirements. Disposition of Gross Income The amount and disposition of the gross income of the bank are shown for each year since 1915 in the following diagram. The heights of the columns compare the gross income of each year, and the sections into which the columns are divided show the disposition of income. The current expenses of the bank have been, of course, the first charge against its income; a dividend to the member banks, all of which are stockholders in proportion to their own capital and surplus, has been paid each year at the legally fixed rate of 6 per cent.; the bank's surplus has been increased in accordance with law, and the remaining profits have been paid, as required by law, to the Treasury of the United States as franchise tax. The amount so paid in 1922 was $1,862,509, compared with $20,702,440 in 1921. In addition, $1,604,549 was paid to the Treasury out of surplus. This represented an increment to amounts paid as franchise taxes in 1920 and 1921, and was in accordance with a modified ruling governing the calculation of such payments. Under the law the amounts paid by the Reserve Banks as franchise taxes are available to the Treasury only for the purpose of placing additional gold reserve behind United States notes, known as greenbacks, or for use in retiring the Government's bonded debt. FEDERAL RESERVE BANK OF NEW YORK 15 ^ j U.S.TREASURY H H SURPLUS gH§ DIVIDENDS | H EXPENSES 1916 1919 1920 1921 1922 Disposition of Gross Earnings of the Federal Reserve Bank of New York, in Millions of Dollars. Expenses of Operation The expenses of carrying on the work of the bank, divided according to functions, with the miscellaneous items of overhead apportioned among the various functions, were as follows. 1. MAINTAINING THE ACCOUNTS OF THE BANK. This work included making about 9,420,000 entries a year in the accounts maintained with member and other banks, and the current determination of reserve balances, which are required by law $219,084 2. SUPPLYING CURRENCY!AND COIN. PAYING OUT, RECEIVING, AND REDEEMING CURRENCY, in- volving the count of about 696,000,000 individual notes during the year PAYING OUT AND RECEIVING COIN. merly performed largely by the Subtreasury, and is now entirely in the hands of the Federal Reserve Bank. Receipts and issues amounted to $186,500,000 for the year $855,913 This service was for- 173,601 16 EIGHTH ANNUAL REPORT CURRENCY AND COIN SHIPMENTS to and from out-of-town banks. There were 215,000 such shipments in and out during the year 336,961 COST OF PRINTING NEW FEDERAL RESERVE CURRENCY to replace worn notes in circulation and to maintain supplies unissued and on hand, including cost of transportation.. 553,125 TAX ON FEDERAL RESERVE BANK NOTE CIRCULATION, mostly notes in the $1 and $2 denominations. (Federal Reserve note circulation is not taxed) 69,374 SUPPLYING CURRENCY AND C O I N $1,988,974 3. MAKING LOANS. MAKING DISCOUNTS AND ADVANCES TO MEMBER BANKS. The number of items handled during the year was 60,715, aggregating $9,206,000,000 $307,250 PURCHASING ACCEPTANCES AND GOVERNMENT OBLIGATIONS for the account of this bank and other Federal Reserve Banks. The items purchased during the year aggregated $3,750,000,000 115,377 MAKING LOANS $422,627 4. COLLECTING CHECKS, DRAFTS, N O T E S AND C O U PONS. COLLECTION OF CASH ITEMS, mostly checks. The average number collected was 392,715 a day, or 118,600,000 for the year, aggregating $62,300,000,000 $1,537,067 COLLECTION OF NON-CASH ITEMS, including drafts, notes and coupons. The number of items handled during the year was about 1,740,000, aggregating $1,520,000,000 512,585 COLLECTING CHECKS, ETC $2,049,652 5. SUPPLEMENTARY SERVICES. CUSTODY OF SECURITIES. This service involved holding in safekeeping on the average about $700,000,000 of securities for the United States Government, $100,000,000 for the War Finance Corporation and $200,000,000 from other sources $135,019 PURCHASE AND SALE OF BANKERS ACCEPTANCES and other securities for member banks and foreign banks amounting for the year to $302,000,000 and receiving and delivering securities for the account of member banks, amounting for the year to about $916,000,000. In addition the bank has acted for the Treasury Department in the purchase and sale of Government securities TELEGRAPHIC TRANSFER OF FUNDS. formed over the telegraph wires of the Federal Reserve system, and is used by the Treasury Department and member banks. It involves making an average of 783 transfers of funds to all parts of the country each day, amounting to about $83,000,000 and aggregating for the year $25,126,000,000 fcb SUPPLEMENTARY SERVICES 183,645 This service is per- 100,242 $418,906 FEDERAL RESERVE BANK OF NEW YORK 6. SERVICES IN CONNECTION LOANS. 17 WITH GOVERNMENT This work included during 1922 the receipt or delivery of 6,387,000 individual Government bonds, notes and certificates, amounting to $4,633,000,000, which were exchanged or converted or handled in connection with registration; and the payment of 22,685,000 individual coupons on Government bonds, notes and certificates. It also involved the sale and issue of 320,000 pieces amounting to $1,922,000,000, and the redemption of 646,000 pieces amounting to $1,451,000,000, of Government bonds, notes and certificates. Aside from amounts received from the Treasury in partial reimbursement, the cost of such operations to the bank was (In addition to these operations for the Treasury, the bank performed other work for the Government connected with the currency, the collection of checks, the custody, purchase and sale of securities, the transfer of funds, etc., which have been referred to under their respective headings.) $616,859 7. GENERAL OR SUPERVISORY EXPENSES, not apportioned among the functions specified above. EXECUTIVE SALARIES (Chairman, governor, four deputy governors and secretary of the bank, and manager and cashier of the Buffalo Branch) $209,330 WORK OF THE FEDERAL RESERVE AGENT, including note issues, examination of member banks, visits to member banks, statistical and information services, such as the preparation of weekly bank statements and the publication of the Monthly Review MAINTAINING THE GENERAL AUDIT DIRECTORS' FEES AND TRAVELING EXPENSES 365,219 264,971 23,075 THIS BANK'S SHARE OF THE EXPENSES OF THE FEDERAL RESERVE BOARD GENERAL OR SUPERVISORY EXPENSES TOTAL 197,882 $1,060,477 $6,776,529 18 EIGHTH ANNUAL REPORT EARNING ASSETS During 1922 the earning assets of the bank, including loans to member banks and holdings of United States Government obligations and bankers acceptances, were generally lower than at any time since the first months of our participation in the war. Late in the year, largely because of year-end adjustments, earning assets increased, and on December 31, 1922, the total was $412,405,000 as compared with $385,199,000 on December 31, 1921. The following diagram shows the course of the earning assets of the bank for the eight full years of its operation. For purposes of comparison the bank's holdings of purchased paper, consisting of United States Government obligations and bankers acceptances, are also shown. It will be observed that in recent months a change in the volume of the bank's holdings of purchased paper has not materially affected the volume of total earning assets of which they are a part. The borrowings of member banks throughout the year, by their increase or decrease, have largely offset the decrease or increase of purchased paper. MILLIONS OF DOLLARS 1200 1000 EAI :NINGAS SETS £00 I 1 J 600 J / \ \ \ 400 PURC SA5ED BILI &U.3. SECURITY Art 200 / »V J \ 1915 1916 1917 1918 1919 1920 192.1 Total Earning Assets of the Federal Reserve Bank of New York and Purchased Bills and United States Securities Held FEDERAL RESERVE BANK OF NEW YORK 19 Discounts and Advances At the beginning of 1922 loans to member banks were already much reduced; banks in New York City in general were not borrowing, and banks in other parts of the district, where liquidation was slower, were gradually extinguishing their indebtedness. The diagram below compares the borrowings by New York City banks and banks in the district outside New York City during the last four years. In the late summer and autumn of 1922, as the aggregate of the loans and investments of member banks increased, there was an increase also in their demands upon the Reserve Bank. But in general, loans to member banks remained small throughout the vear. MILLIONS OF DOLLARS 1000 250 1919 1920 1921 192.2, Discounts and Advances made by the Federal Reserve Bank of New York to Member Banks in New York City and in the Second Federal Reserve District outside of New York City While the aggregate amount of the discounts and advances made by the bank in the entire year was reduced from $31,000,000,000 in 1921 to $9,000,000,000 in 1922, the number of pieces of paper discounted or advanced upon was not reduced in like proportion, due to smaller borrowings by city banks. There was also a slight increase in the number of banks which borrowed at one time or another in the year, indicating a somewhat more general utilization of the bank's facilities. The following table compares certain of the more important figures relating to rediscounts and advances for each of the past three years. 20 EIGHTH ANNUAL REPORT 1921 1922 Applications received Amount discounted or advanced upon Number of pieces of paper discounted or advanced upon Largest piece of paper discounted or advanced upon Smallest piece of paper discounted or advanced upon Average size of notes discounted or advanced upon 14,178 1920 21,461 ,206,363,786.02 $30,768,989,922.52 60,715 27,757 ),539,428,847.71 149,868 180,462 $75,000,000.00 $78,100,000.00 $85,000,000.00 $13.22 $16.72 $14,72 $151,632.44 $205,307.26 $280,055.79 Discount Rates The 43^ per cent, rate on all discounts and advances however secured, which went into effect on November 3, 1921, continued until June 22, 1922. On that date, following a marked decline in interest rates in the open market, this bank's rate was reduced to 4 per cent., which continued in effect through the remainder of the year. The reduction brought the rate of the bank to substantially the same level as that which prevailed during 1915, 1916 and 1917. The relationship of the discount rates of the bank throughout the year to the market rates on commercial paper, bankers acceptances, Treasury certificates and the yield on Liberty bonds, is illustrated in the accompanying diagrams. Bankers Acceptances This bank's holdings of bankers acceptances were larger in 1922 than in the preceding year, though smaller than in 1920. This increase was owing largely to conditions within the bill market itself. During the first part of the year a large volume of foreign funds seeking employment in this market was invested in bankers acceptances, continuing on a larger scale a tendency manifested in 1921. One result was a decline in rates to 3 per cent, or even lower, and at these rates the demand for bills from banks in this country diminished. Later in the year when foreign funds were being withdrawn from the bill market for employment in Government securities, or for the purchase of grain, interest payments and other purposes, rates for bills rose and bankers acceptances became a FEDERAL RESERVE BANK OF NEW YORK 21 KATE iop COMMERCIAL PAPER KATE RATE 10 tor BANK BANK MARKET LIB ERTY BO NDS 0 Open Market Interest Rates at New York Compared with the Discount Rates of the Federal Reserve Bank of New York Open Market Rates Shown are for Prime 4 to 6 Months Commercial Paper, Prime 90-day Bankers Accepiances, Certificates Maturing in 4 to 6 Months, and an Average of the Yields of 4 Issues of Liberty Bonds more attractive investment for American banks. At times, especially when funds were being shifted from the bill market to other uses, bills were offered in considerable volume to the Federal Reserve Bank. The amount of call money available to the bill market at rates permitting profitable use was limited throughout the year. This bank's total purchases of bankers and trade acceptances in the open market during 1922 aggregated $1,417,000,000 as compared with $1,379,000,000 in 1921. The number of pieces bought in 1922 was larger than in any previous year except 1920, owing partly to a tendency toward a reduction in the size of individual pieces. These total figures included not only bills purchased for the account of this bank, but those purchased for other Federal Reserve EIGHTH ANNUAL REPORT 22 Banks, for the account of member banks and for foreign banks, as appears in the following table. 1921 1922 Pieces For account of this bank For account of other Federal Reserve Banks For account of members of this Federal Reserve Bank. .. For account of members of other Federal Reserve Banks For account of foreign banks. .. Total Amount Pieces Amount 56,474 $871,000,000 46,836 $800,000,000 23,108 316,000,000 12,706 194,000,000 2,342 17,000,000 7,561 59,000,000 632 17,864 6,000,000 207,000,000 15,000,000 311,000,000 100,420 $1,417,000,000 1,347 22,884 91,334 $1,379,000,000 Minimum rates at which indorsed bills were purchased by this bank for its own account and for the account of other Federal Reserve Banks during 1922 are shown in the appendix. While it is not possible to state accurately the volume of bankers acceptances and prime commercial bills bearing banking indorsement which circulate in the open discount market, it is possible to approximate the total from reports furnished to this bank. The following table shows such estimates for the close of each year from 1916 to 1922 inclusive, compared with the amounts owned by the Federal Reserve Banks. Date 1916 1917 1918 1919 1920 1921 1922 Owned by Federal Reserve Bank of New York Owned by All Federal Reserve Banks Estimated Amount Outstanding Percentage Owned by All Federal Reserve Banks to Estimated Amount Outstanding $41,457,000 148,125,000 69,323,000 191,312,000 109,902,000 47,313,000 45,789,000 $127,497,000 275,366,000 303,673,000 585,212,000 255,702,000 114,240,000 246,293,000 $250,000,000 450,000,000 750,000,000 1,000,000,000 1,000,000,000 600,000,000 600,000,000 51.0 61.2 40.5 58.5 25.6 19.0 41.0 Although the volume of bills outstanding at the close of the year was no larger than at the close of 1921 and less than in the three preceding years, the market on the whole was broader than at any previous time. Aside from such obvious purchasers as city and country banks, insurance companies, savings banks and other financial organizations, buyers of bills included, according to reports received from various discount houses, the following: Salt, iron and petroleum companies in California. A creamery and a telephone company in Colorado. FEDERAL RESERVE RANK OF NEW YORK 23 A hospital and various manufacturing plants in Connecticut. Cotton mills in Georgia. Many concerns in Illinois, ranging from publishing houses to manufacturers of screen doors. A lumber mill in Indiana. Elevators and milling companies in Kansas. Manufacturing concerns and municipal finance boards in Maine. An athletic club in Maryland. A linseed company in Minnesota. Coke and chemical concerns in Missouri. Butchers, laundrymen, and a boys' club in New York. A varied range of buyers from steel companies to sanitariums in North Carolina. A brewery and a coal miners' mutual association in Pennsylvania. A Utah candy company. Texas cotton companies. A feed store in West Virginia. A dairy farm in Wisconsin. Also, scattered throughout the country, trustees of Protestant churches, bishops of Roman Catholic dioceses, the Salvation Army, colleges large and small, lodges of Elks and other fraternal and welfare organizations. Also, besides the very large purchases of bills by foreign governments and by foreign banks having branches in this country, many foreign banks in cities as widely separated as Constantinople and Tokio, as well as many individuals in England, Switzerland, Holland, and other foreign countries. It was also reported that more bills than heretofore found their way to the market direct from the owners of the bills rather than through the medium of the banks which had accepted them. On March 29, 1922, the Federal Reserve Roard announced a modification of its regulations respecting the rediscount or purchase by Federal Reserve Ranks of bankers acceptances drawn to finance export and import transactions. The modification broadened the class of transactions in which member banks were able in practice to extend acceptance credit and permitted the American practice to conform more closely with that in foreign centers. The result was to stimulate the further use of dollar credits in financing international transactions. A regulation issued by the Federal Reserve Roard on May 6, 1921, permitting the Federal Reserve Ranks to purchase bankers acceptances issued in import and export transactions, with maturity up to six months, has resulted in no abuses, and while four months bills have been in fair supply, longer maturities have been limited. The following table gives the approximate average maturity of the purchased bills held by this bank at three months' intervals during 1922 and 1921. Date January 1 April " 1 July 1 October 1 December 31 1922 1921 15 Days 28 " 16 " 50 " 22 " 27 Days 29 " 11 " 17 " 15 " EIGHTH ANNUAL REPORT 24 On December 19, 1922, the Federal Reserve Board issued a regulation which applied a similar rule to domestic bills secured by staple agricultural products pending orderly marketing, and Federal Reserve Banks thereby were permitted to purchase such bills with maturity up to six months. Government Obligations Owned Other earning assets of the bank consisted of the following groups of Government obligations. 1. One year special two per cent, certificates of indebtedness to secure Federal Reserve Bank note circulation. The amount of such certificates held under authority of the Pittman Act on December 31, 1921, was $35,400,000. This amount was gradually reduced as the Federal Reserve Bank notes which they secured were retired. On December 28, 1922, the entire amount then outstanding, $3,000,000, was redeemed by the Treasury, which thereafter assumed liability for all Federal Reserve Bank notes remaining unretired. 2. Special certificates of indebtedness running for a few days. With the decline in the size of Government short-term issues, the Treasury has had less need of temporary advances than in previous years. The bank held special certificates of indebtedness covering such advances on 45 days, as compared with 60 days in 1921. The largest advance was that of March 15 amounting to $135,000,000. 3. Treasury notes and certificates under sales contract. As in previous years the bank purchased certificates of indebtedness from discount houses and dealers, under the provision that they be repurchased within fifteen days. Under similar conditions the bank also purchased during 1922 Victory notes and Treasury notes. Except for relatively brief periods, when there developed in the market an oversupply of short-time obligations, the amounts so purchased were small. 4. Holdings of Government obligations. From time to time the bank acquired for its own account certificates of indebtedness, Victory notes, Treasury notes, Liberty bonds and Treasury bonds. The largest amount so held in the year was $183,879,000 on May 10, 1922. The amounts held on dates at quarterly intervals were as follows. Less than One Year Dec. Apr. July Oct. Dec. 31, 1921 5, 1922 5, 1922 4, 1922 31, 1922 $59,603,000 40,908,000 95,124,000 76,002,000 65,745,000 Maturing in One to Five Years $50,168,000 42,000,000 25,002,000 32,520,800 Over Five Years $596,000 857,750 857,750 881,750 1,148,750 FEDERAL RESERVE BANK OF NEW YORK 25 FEDERAL RESERVE CURRENCY The accompanying diagram shows that in 1922 as in 1921 the month to month changes in the amount in circulation of Federal Reserve notes of all Reserve Banks were practically equal to the changes in the total amount of money in circulation in the country, illustrating the fact that Federal Reserve notes furnish the principal fluctuating element in the country's currency. The note circulation of this bank was lower in 1922 than at any time since the first half of 1918, reflecting in the early part of the year mainly the lower level of commodity prices and the restricted volume of business which then obtained; and later an increase in the circulation of other forms of currency. At the request of the Secretary of the Treasury in the spring of 1922, the bank, in common with other Reserve Banks, paid out gold for the account of the Treasury. As the year advanced and gold importation continued, the bank increased its payments of gold and gold certificates on general account. Toward the close of 1922 the circulation of Federal Reserve notes of this bank increased slightly because of the usual holiday demand, but was about $66,292,000 below the circulation at the close of 1921. MILLIONS Of DOLLARS 6000 FEDERAL RESERVE NOTES ALL BANKS FEDERAL RESERVE NOTES NEW YORK BANK 1915 1916 1917 1918 1919 1920 1921 1922 Federal Reserve Notes in Circulation Compared with the Total Money in Circulation in the United States outside of the Treasury and the Federal Reserve Banks 26 EIGHTH ANNUAL REPORT The amount of Federal Reserve Bank notes constituting a liability of this bank has been gradually reduced in the past three years, as appears in the following table. Date December 30, 1920. December 28, 1921. December 27, 1922. New York $38,741,000 21,391,000 2,450,000 These notes were issued under the provisions of the Pittman Act of April 23, 1918, for the purpose of supplying currency of small denominations, mostly $1 and $2, to replace silver certificates withdrawn from circulation, and were secured by Treasury certificates of indebtedness, which were reduced as the circulation diminished. On December 28, 1922, the last of the certificates was redeemed and the Treasury thereupon assumed entire liability for all notes remaining unretired. FEDERAL RESERVE BANK OF NEW YORK 27 RESERVES AND RESERVE POSITION The flow of gold from Europe to the United States, which reached very large proportions in 1921, continued in 1922, but at a gradually diminishing rate. This imported gold reached this country largely through the port of New York, where, following its natural course, it became part of the reserves of the Federal Reserve Bank of New York, and thereafter in the course of the nation's trade was distributed more or less generally among all the Federal Reserve Banks. The following table shows the net importations of gold into this country during quarterly periods of 1921 and 1922, and shows also the increases in gold reserves of this bank and of all twelve Federal Reserve Banks through the same periods. Increases in Gold Reserve Quarter Ended March 1921 June September December March 1922 June September December Total (2 Years) Gold Imports (Net) Federal Reserve Federal Reserve Bank of System New York $159,062,000 180,190,000 208,379,000 119,726,000 85,240,000 27,628,000 83,545,000 41,882,000 $122,026,000 283,648,000 156,538,000 41,020,000 49,814,000 54,077,000 -116,794,000 - 28,216,000 $151,432,000 251,166,000 264,035,000 143,634,000 105,755,000 45,513,000 56,075,000 -36,504,000 $905,652,000 $562,113,000 $981,106,000 The increase in the country's stock of gold was accompanied by a large increase in the deposits of member banks, which called for a corresponding increase in the reserve deposits of member banks maintained at the Federal Reserve Banks. Member bank reserve deposits reached their highest point of the year, $805,166,000, on June 28. This was the highest point reached by the reserve deposits of member banks in this district since the credit expansion of 1919 and 1920, when on November 7, 1919, reserve deposits reached a maximum of $806,972,000. In 1922 the increased deposit liability of this bank and a small decline in its gold reserves were partially offset by the decrease in its liability on account of notes in circulation. The combined effect of these changes is shown in the following diagram, which gives the reserve percentages reported for the last week in each month since 1917. EIGHTH ANNUAL REPORT 28 PER CENT 100 v 60 \ A fy Rl SERVE CENTAGE 40 2.0 1917 1918 1919 19£0 1921 1922 Reserve Percentage of the Federal Reserve Bank of New York each Month since 1917 The foregoing diagram reflects in previous years in part the effect of loans to or from other Federal Reserve Banks. In 1922 the bank had no such transactions. FEDERAL RESERVE BANK OF NEW YORK 29 COLLECTIONS AND CLEARINGS The use by the banks of the district of this bank's facilities for the collection of checks, notes, drafts, coupons and bonds and for the transfer of funds, was more extensive in 1922 than in any previous year. Both in the number of items handled and the dollar amount represented, as well as in the number of banks making use of the facilities, the volume of business was larger than at any previous time. Check Collections At the close of 1922, out of 808 member banks in this district, 692 were directly using the check collection system, as compared with 628 banks at the close of 1921. On October 16, 1922, when a total of 612,000 checks was handled, the number handled in a single day reached the highest point since the establishment of the system. The following table shows the increase in the use of this facility in recent years. Year Banks Using the Collection Facility Date Number of Items Items 375 508 628 692 Oct. 15 Oct. 14 Oct. 14 Oct. 16 390,000 460,000 496,000 612,000 74,066,000 87,036,000 104,519,000 118,589,000 1919 1920 . 1921 1922.. Highest Day Total for the Year Amount $56,322,041,000 55,325,111,000 36,101,511,000 62,280,122,000 At the close of the year there were 663 employees engaged in this work as against 649 at the close of 1921. Further progress was made during the year in making the proceeds of checks collected more quickly available to member banks. The privilege of sending checks on banks in other Federal Reserve districts direct to the Federal Reserve Banks in those districts was further developed. Also, there was an extension to six additional counties of the arrangement previously made in eleven counties in this district, whereby the member banks in those counties forward checks drawn on other banks in the same county directly to such banks, and simultaneously advise the Federal Reserve Bank of the amounts. The Reserve Bank clears on its books the aggregate of the transactions and effects a saving of at least two days in the time required for collection. Additional member banks were admitted to participate in the groups already established. The following table shows EIGHTH ANNUAL REPORT 30 the counties and the number of banks in each group organized in this manner. Group County Number of Banks 1 2 3 4 5 6 7 8 9 10 11 12 Delaware Monmouth Tompkins, Chemung, Tioga and Broome. Middlesex Westchester Otsego Herkimer Steuben Nassau Bergen Sullivan Saratoga, Warren and Washington 16 22 19 20 23 13 14 8 24 29 9 17 Volume of Settlements, 1922 $10,525,000 25,676,000 21,353,000 19,083,000 43,168,000 5,728,000 8,552,000 1,584,000 10,594,000 19,946,000 6,860,000 4,249,000 Arrangements were also made in 1922 whereby the members of the newly formed Newark, N. J., Clearing House Association settle their balances daily on the books of this bank. Except for the fact that the clearing sheets are conveyed by messenger, the arrangement is the same as that previously established by the clearing house banks of Syracuse, Elmira and Binghamton which settle balances by wire. The Northern New Jersey Clearing House Association, which is now composed of 22 member banks with 4 non-member banks and trust companies as associate members, increased further its volume of transactions. Daily clearings of the association averaged about $6,721,000 in 1922, as compared with about $6,288,000 in 1921. Of the $2,029,681,000 total clearings for 1922 this bank presented items aggregating $1,630,632,000. In the Boroughs of Manhattan and The Bronx and in the Borough of Brooklyn 32 additional banks and branches of banks participated in the one-way collection facilities which have been maintained for those boroughs for several years. During 1922 this bank presented checks to the amount of $2,488,913,000 against banks in Manhattan and The Bronx, and checks to the amount of $2,415,035,000 against banks in Brooklyn. Note and Coupon Collections Notes and drafts handled for collection in 1922 numbered 964,828 as compared with 814,329 in 1921, an increase of 18 per cent. Of this number 702,510 were drawn on places outside of New York City, and 262,318 were payable in New York City. FEDERAL RESERVE BANK OF NEW YORK 31 Matured bonds and coupons (other than United States Government obligations) were collected in the amount of $129,903,333 in 1922, as compared with $104,843,668 in 1921, an increase of 24 per cent. The foregoing figures are exclusive of transactions at the Buffalo branch, which are referred to in the section dealing with the operations of the branch. As heretofore, the collection of notes, drafts and maturing bonds and coupons has been handled for member banks without charge, except that such charges as were made by collecting banks were passed back to the banks depositing such items. Telegraphic Transfer Service Except in the volume of transactions, there was no change in this service, which is used by the Treasury and the member banks for the benefit of themselves and their customers. The number of transfers so effected by this bank over the wires of the Federal Reserve system, averaged 10 per cent, larger than in 1921, and the dollar amount increased about 38 per cent. The following table shows the telegraphic transfers of this bank to and from other Reserve Banks and within this district from 1916 to 1922. Year Number 1916 (nine months) 2,971 1917 10,302 1918 39,099 1919 84,110 Amount $484,500,000 6,768,400,000 19,384,400,000 18,364,500,000 Year 1920 1921 1922 Number Amount 154,176 $17,409,900,000 214,480 18,160,300,000 236,368 25,126,100,000 Gold Settlement Fund The average amount of daily transactions through the gold settlement fund, operated by the Federal Reserve Board at Washington, was about $294,300,000 at the close of 1922, as compared with $235,000,000 at the close of 1921. Transactions settled in this way include the balances between Federal Reserve districts arising from check collections, transfers of funds for member banks and their customers, for the United States Treasury, and for the several Federal Reserve Banks. The following table shows for this district the aggregate transactions through the fund in each year from 1915 to 1922. 1915 1916 1917 1918 $556,432,000 2,335,225,000 17,118,917,000 32,935,576,000 $41,932,723,000 48,840,900,000 39,697,533,000 45,465,167,000 32 EIGHTH ANNUAL REPORT RELATIONS WITH MEMBER BANKS Representatives of the bank continued during 1922 to visit the member banks of the district. As heretofore, the effect of these visits was to develop further the relations between this bank and its members, to give the officers of this bank a clearer understanding of banking and business conditions throughout the district, and to give the officers of member banks a better understanding of the operations and policies of the Federal Reserve Bank. The bank continued to issue to member banks, their customers and others desiring it, a Monthly Review of Credit and Business Conditions. A series of articles explanatory of the operations of the Federal Reserve system, begun in 1921, was continued throughout the year. The monthly circulation of the Review at the close of 1922 was about 42,000 copies. The bank, with the cooperation of the Treasury, the Federal Reserve Board and the other Federal Reserve Banks, conducted an exhibit at the convention of the American Bankers Association held in New York early in October. The exhibit, which was adjacent to the convention hall, was designed to show in graphic form various operations of the Treasury, particularly those in relation to the Government debt; many of the operations of the Federal Reserve system, and economic developments which are currently reported by the statistical services of the Reserve Banks. Certain aspects of banking under the Reserve system were shown in motion picture form. The exhibit had the cordial support of the officers of the American Bankers Association and the managers of the convention and was attended by many bankers, both member and nonmember, from all parts of the country. Late in the spring a pamphlet, "Better Banking," descriptive of banking operations under the Federal Reserve system, was offered by all Federal Reserve Banks to member banks at one cent a copy, to cover the cost of preparation and printing. In most cases the imprint of the member bank was placed upon the pamphlet for distribution to its customers. The number of copies purchased from this bank up to the end of the year was 667,000. The right of banks to exercise fiduciary powers in accordance with the terms of the Federal Reserve Act was extended during the year to 26 National banks in this district. Relations with Banking Departments—Examinations Close cooperation, as heretofore, has been maintained between this bank and the State Banking Departments of New York, New Jersey and Connecticut, and also with the National bank examiners having charge of work in this district. 33 FEDERAL RESERVE RANK OF NEW YORK This bank's examiners participated in 103 examinations of member banks during the year, of which 8 were joint examinations of National banks and 85 were joint examinations of State banks and trust companies. In addition 10 National banks were examined independently by the examiners of this bank, temporarily commissioned as National bank examiners, in accordance with the request of the Comptroller of the Currency. Bank Changes in 1922 At the close of the year the banks of the Second Federal Reserve district (exclusive of savings banks), classified according to their charters, whether National or State, and also according to membership in the Federal Reserve sj^stem, were as follows. December 31, 1922 Type of Bank December 31, 1921 NonNonPer Cent. Per Cent. Members Members Members Members Members Members National banks ritate banks Trust companies Total 671 49 88 218 125 100 18 41 667 48 85 2ii 123 100 19 41 808 343 70 800 334 71 The changes which took place during the year were as follows. Total number of banks in the district, January 1, 1922 New National banks established during the year New State banks established during the year 1,134 .. 18 19 37 1,171 National banks absorbed by State institutions National banks absorbed bv other National banks State institutions absorbed by National banks State institutions absorbed by other State institutions .. .. .. .. 4 8 2 6 National banks converted into State institutions State institutions converted into National banks .. .. 4 2 Total number of banks in the district, December 31, 1922 nil 1,151 Membership of State Institutions State banks and trust companies in this district which are members of the Federal Reserve system numbered 137 on December 31. During the year eight State institutions were admitted to membership; 34 EIGHTH ANNUAL REPORT two were converted into National banks; and two were absorbed by other State institutions. None withdrew from membership. The new members were as follows. NEW MEMBERS Month Location Bank or Trust Company Resources Dec. 29, 1922 February. .. Ridgefield Park, N. J... Overpeck Trust Company, Ridgefield Park, N. J $ 464,548 Globe Exchange Bank 3,015,857 Brooklyn, N. Y Midwood Trust Company 3,022,168 Brooklyn, N. Y 5,388,397 September.. Perth Amboy, N. J . . . . Perth Amboy Trust Company.. Westwood Trust Company 182,700 October. . .. Westwood, N. J New York City, N. Y . . Bank of Europe, New York, N. Y 8,899,108 New York City, N. Y . . Bank of New York and Trust Company 133,880,892 Springfield Avenue Trust ComNovember.. Newark, N. J pany, Newark, N. J 5,743,274 Thirty-two per cent, of the eligible State institutions in this district are now members of the Federal Reserve system, and their resources amount to about 78 per cent, of the total resources of State institutions in the district eligible for membership. CUSTODY OF SECURITIES This bank continued during 1922 to serve the Government, various governmental agencies, other Federal Reserve Banks, and member banks, by purchasing and selling securities for them, largely United States Government securities, and by holding securities in safe-keeping. RELATIONS WITH FOREIGN BANKS The relations heretofore established by the bank with foreign banks of issue continued as in previous years. Transactions with the Bank of England, the Bank of France and the National Bank of Belgium related mainly to reparations payments. Operations under agreements with de Nederlandsche Bank and de Javasche Bank, while of the same general character as heretofore, increased in volume, and transactions with the Bank of Japan continued without material change. Relations were established in the year with the National Bank of Nicaragua, the Swiss National Bank, and the Reichsbank. FEDERAL RESERVE BANK OF NEW YORK 35 ORGANIZATION OF THE BANK Board of Directors The board of directors met regularly on Wednesday of each week as usual. In view of the smaller lending operations of the bank it was found possible to reduce the number of meetings of the executive committee, which formerly met five times a week, and since March 2, the executive committee has met only on Mondays and Thursdays. Meetings of the other committees of the board were held as occasion required. On December 31, 1922, the terms of three directors, James S. Alexander of Class A, Charles A. Stone of Class B, and Pierre Jay of Class C, expired. Both Mr. Alexander and Mr. Stone declined renomination and requested that their names be not placed before the member banks at the election. The voting member banks, which this year were those in Group 1, having capital and surplus above $1,999,000, elected Gates W. McGarrah, of New York City, chairman of the Mechanics and Metals National Bank, a Class A director; and Owen D. Young, of New York City, chairman of the General Electric Company, a Class B director, both for terms of three years. The Federal Reserve Board reappointed Pierre Jay, of New York City, a Class C director, for a term of three years, and redesignated him Chairman of the Board and Federal Reserve Agent for 1923. Member of Advisory Council At a meeting of the board of directors held on January 4, 1922, Paul M. Warburg, of New York City, was reelected a member of the Federal Advisory Council from the Second Federal Reserve District for the year 1922. Officers and Staff The plan of organization under which the bank has operated since 1919 was continued, but with various departmental and administrative changes. On March 8, L. Randolph Mason, formerly assistant general counsel of the bank, was appointed general counsel, succeeding Edward H. Hart, resigned. Thomas W. Bowers was appointed assistant general counsel, effective April 1, and upon his resignation on November 1, Jesse Holladay Philbin was appointed to succeed him. On January 1, Gilbert E. Chapin, formerly manager of the loan department, became controller of loans. On February 24, the 36 EIGHTH ANNUAL REPORT following changes in official designation took place: Arthur W. Gilbart, formerly controller of administration, became controller of cash and controller of collections; Laurence H. Hendricks, formerly controller at large, became controller of fiscal agency functions; Joseph D. Higgins, formerly controller of cash and custodies, became controller at large and was designated temporarily as a member of the procedure committee; J. Wilson Jones, formerly controller of fiscal agency functions, became controller of administration; Charles H. Coe, formerly manager of the check department, became manager of the collection department; Edwin C. French, formerly manager of the custody department, became manager of the cash department; William A. Hamilton, formerly manager of the cash department, became manager of the building maintenance department; Adolph J. Lins, formerly manager at large, became manager of the check department; and Henry R. Murray, formerly manager of the collection department, became manager of the securities custody department. On June 1, James M. Rice, formerly manager of the Government bond department, became manager of the accounting department; Bethune M. Grant, formerly manager of the Government securities sales department, became manager of the Government bond department; and Alan K. Lauckner, formerly chief of the bookkeeping division, accounting department, became manager of the methods and supplies department, succeeding John E. Raasch, resigned. The number of persons in the service of the bank on December 31, 1921, was 2,907, and on December 31, 1922, was 3,043. Up to late spring, however, vacancies occurring through resignation as a rule were not filled, and the personnel of the bank declined to 2,692 on May 31, the low point for the year. This decrease was the result not of any substantial decline in the gross volume of the bank's work, but was rather a reflection of the passage of the time when the bank, as in the years of its most rapid growth, was constantly required to adapt itself to new operations. Experience, based upon greater steadiness in the day-to-day work of the bank, permitted adjustments in operating practice, to which the employees, particularly those longer in the service, gave hearty support. In the early autumn, activity in the departments handling collections and currency required additional employees. Late in the year, the large volume of work in connection with the redemption of Victory notes and War Savings stamps and certificates necessitated a further increase of about 175 employees, thus offsetting the reductions in the staff otherwise effected. The compensation of the additional War Savings employees is reimbursed by the Treasury. Educational courses in banking principles and in the operations of the bank were given as heretofore to a number of groups of FEDERAL RESERVE BANK OF NEW YORK 37 employees, including a special group, one-half of which were selected young men from the bank and one-half recent college graduates, who were also assigned progressively to the different departments of the bank for practical experience. Training classes were also conducted for newly engaged junior employees before assigning them to positions in the active work of the bank. The Federal Reserve Club, which includes in its membership most of the non-official staff of the bank, continued its activities which included the encouragement of employees to participate in the courses of the American Institute of Banking and other courses, the editing of the monthly Federal Reserve Club Magazine, the organization of physical exercise and athletic teams among the employees and the management of a thrift association for employees. 38 EIGHTH ANNUAL REPORT BANK PREMISES During the year the inconvenience arising from the scattered and crowded condition of the bank's present quarters has become more pronounced, owing to the increased activity of various of the larger departments. In the annual report for 1921 a description was given of the new bank building, together with a statement of the need for it, the method of organizing the construction work and the estimated cost. Work upon this building has continued throughout 1922, and on May 31 the cornerstone was laid. At the close of 1921 the site had been cleared, the cofferdam surrounding the lot had been nearly completed, and excavation within the cofferdam had been begun on the western portion of the lot. During 1922 the completion of excavation throughout the lot to the level of the lowest basement, which involved a considerable hazard to surrounding property, was successfully accomplished, and by the end of November all matters covered in the foundation contract were finished. While foundation work was progressing it was possible to proceed with the erection of steel and to some extent with the laying of stone. At the close of 1922 the steel work of the entire building, involving the setting of 12,400 tons, was 97 per cent, completed. On the same date 97 per cent, of all exterior stonework had been cut, and 48 per cent, of the entire amount required had been set. It is estimated that if this rate of progress continues the entire building will be enclosed by March 1, 1923, and may be partially occupied by the end of the year. The period since preliminary work on the building began has proved to be favorable with respect to cost. At the close of 1921 contracts covering about one-quarter of the total estimated cost of construction had been let at figures showing a 23 per cent, saving from the estimates for items covered in those contracts. At the close of 1922 contracts for more than two-thirds of the total estimated cost of construction had been let at figures showing a 29 per cent, saving from the estimates for those items. Since the letting of some of these contracts, prices have advanced and it is impossible now to forecast whether the remaining contracts may be let at less than the costs originally estimated. FEDERAL RESERVE BANK OF NEW YORK 39 BUFFALO BRANCH The operations of the Buffalo Branch, which deals primarily with the ten most western counties of New York State, continued to increase during the year, as will be seen from the following summary of its operations. Currency Operations for Member and Nonmember Banks Loans Made Jan.-Mar Apr.-June July-Sept Oct.-Dec $69,868,000 78,658,000 80,843,000 92,528,000 $227,051,000 111,480,000 53,816,000 216,391,000 Total $321,897,000 $608,768,000 1922 Interest Earned Checks and Transit Items Handled Number Amount $188,000 82,000 31,000 156,000 2,379,000 2,561,000 2,543,000 2,753,000 $482,384,000 534,691,000 552,340,000 624,102,000 $457,000 10,236,000 $2,193,517,000 During 1922 the branch handled 120,349 notes, drafts and other time-collection items, in the amount of $85,252,576; and made 10,158 transfers by wire in the amount of $613,980,909. The expense of operation for the year was $279,639, compared with $338,777 in 1921. At the end of the year the branch had 4 officers and 153 employees, compared with 3 officers and 131 employees at the close of 1921. Elmer L. Theobald, formerly chief of the check division, was appointed on March 8 to be assistant cashier. Ill FISCAL AGENCY OPERATIONS The bank continued, as fiscal agent of the United States, to perform duties which in general were similar to those carried on in previous years, but in some particulars were of a more extensive character. The bank performed for the Government six major functions: 1. 2. 3. 4. 5. 6. The sale and redemption of Treasury certificates of indebtedness. The sale of short-term Treasury notes and long-term Treasury bonds. The redemption of Victory notes. The handling of Government deposits and disbursements. The exchange and conversion of Government bonds. The sale and redemption of War Savings stamps and certificates. Treasury Certificates, Notes and Bonds As a further step in the redistribution of the short-maturing Government debt into more distant and manageable maturities, the Secretary of the Treasury announced on October 9 an issue of 25-30 year bonds dated October 16 and bearing 4J4 per cent, interest, the first long-term issue since the Liberty loans. Like the issues of Treasury notes, inaugurated in 1921 and continued in 1922, the new issue of long-term bonds was solely of a refunding character. The offering was for $500,000,000 or thereabouts, for cash, and an additional amount to the extent that 4 ^ per cent. Victory notes or Treasury certificates maturing December 15 were tendered in payment. Cash subscriptions amounted to about $1,400,000,000 and exchange subscriptions to about $252,000,000 in addition. In making allotments on subscriptions for cash, preference was given to the smaller subscribers. Total allotments throughout the United States, including those made in exchange for Victory notes and Treasury certificates amounted to about $764,000,000, of which $345,000,000 were allotted in this Federal Reserve district, or 45 per cent. Issues of Treasury notes were made at lower rates of interest; whereas in 1921 rates were 5% and 5]/2 per cent., in 1922 they were as low as 4 ^ . The issues of Treasury notes were as follows. 40 FEDERAL RESERVE BANK OF NEW YORK Date of Issue Feb. Mar. June Aug. Dec. 1, 1922 15, 1922 15, 1922 1, 1922 15, 1922 Maturity Rate Mar. 15, 1925 Mar. 15, 1926 Dec. 15, 1925 Sept. 15, 1926 June 15, 1925 m Ws 4M A.y2 41 Total Allotment in United States Allotment in Second District Per cent, of Total Allotted Second District $601,599,500 617,769,700 335,141,300 486,940,700 469,215,100 $254,213,300 314,059,200 173,914,300 196,949,300 147,021,700 42.3 50.8 51.9 40.4 31.3 Issues of certificates of indebtedness were less numerous than in previous years. Total allotments of the issues in 1922 were $1,427,228,000 throughout the country, of which $624,382,000 were allotted in this district, or 44 per cent. Rates of interest borne by certificates of indebtedness were 33^ per cent, for the short maturities and 3%, 4, and 4)4 per cent, for the longer maturities, in general somewhat lower than the rates prevailing at the close of 1921. The two diagrams on this page illustrate both the reduction in the total volume of Government debt and the redistribution of maturities, up to December 31, 1922. The diagram at the left shows the growth in the amount of the total gross debt and the debt that matures within five years, for the period during and immediately following the war, and indicates a gradual reduction of $3,608,000,000 since the high point, on August 31, 1919. The reductions in the short-dated debt (maturing within five years) have amounted to about $2,934,000,000. The diagram on the right illustrates the manner in which the early maturing debt has been t\/ V 1917 1910 1919 1920 1921 The Government Debt 19£2 J 1917 VICTORY N JTES ;BTEDNESS I TRCASVRN 191© 1919 1?20 II A N01M 1921 1922. Changes in Type of Short-dated Government Debt Outstanding 42 EIGHTH ANNUAL REPORT gradually redistributed into more convenient maturities. During 1920 and early in 1921 gradual retirement through revenue had reduced somewhat the short-dated debt, but the Treasury in April 1921, still faced the necessity of meeting during the following two years or thereabouts some $7,500,000,000 of maturities, mainly certificates and Victory notes. The refunding first took the form of short-term Treasury notes, and later was supplemented by the long-term bond issue. The investment demand for the new Government issues was large throughout the year. Many banks found the new Government securities, as well as the older issues, a profitable means of employing funds for which, especially in the early part of the year, there was a lessened commercial demand. The following table shows the amount of Government obligations held on quarterly dates by the reporting member banks in principal cities of the district, representing about 75 per cent, of the banking resources of the district. 1922 Jan. Apr. July Oct. Dec. 4. 5. 5. 4. 27. Short Term Issues Long Term Issues $303,597,000 317,008,000 480,179,000 467,481,000 585,997,000 $364,379,000 426,648,000 524,160,000 561,633,000 592,249,000 Redemption of Victory Notes At the beginning of the year a total of about $3,548,000,000 of Victory notes was outstanding. The Secretary of the Treasury employed various means for reducing the total, the chief of which were: First, to accept certain of them in exchange for various new Treasury issues of more distant maturity; second, to call the 3 ^ per cent, series for redemption on June 15, and to call about half the 4^4 per cent, series (those bearing the distinguishing letters, A, B, C, D, E or F) for redemption on December 15; and third, at the option of the holders to redeem notes of all series at par and accrued interest in advance of the redemption dates. At the end of the year the total that remained outstanding was $1,091,000,000, of which about $237,000,000 was of the series called for redemption on December 15. The operations of this bank in connection with the retirement of Victory notes are summarized in the following table. FEDERAL RESERVE BANK OF NEW YORK 43 Redeemed by Exchange Redeemed for Cash Victory notes: 3 % per cent., called June 15, 1922 $8,401,900 $218,192,350 4% per cent., called Dec. 15, 1922 730,638,350 123,585,200 30,427,450 1,419,000 4% per cent., due May 20, 1923 Government Deposits and Disbursements The banks of the district which subscribed for new issues of Government obligations ordinarily paid for them, as in previous years, by crediting the account of the Federal Reserve Bank of New York as fiscal agent of the United States. Deposits so created bear 2 per cent, interest and are drawn down ratably from time to time as the Government requires the funds. The smallest amount on deposit with qualified depositaries in 1922 was $17,869,000 on October 16, and the largest $294,292,000 on December 21. Collateral pledged with this bank as security against such deposits amounted at maximum to $388,815,000. Collectors of internal revenue, as heretofore, deposited tax receipts with this bank to the account of the Treasurer of the United States. The bank continued at tax collection periods to lend to the collector of internal revenue in Manhattan a staff of clerks for the purpose of assisting him in the early deposit of tax checks. The clerks were reimbursed by the Government for overtime, but their ordinary salaries were paid by the bank. The following table shows the number and amount of Government checks handled by this bank during the past few years, other than those drawn in redeeming certificates of indebtedness, and in the payment of coupons. Year 1917 1918 1919 1920... 1921 . 1922 Total Number Amount 3,029,000 11,108,000 13,052,000 10,852,000 12,488,000 12,728,000 $1,099,458,000 4,936,592,000 7,653,565,000 2,465,931,000 1,638,094,000 1,308,752,000 63,257,000 $19,102,392,000 44 EIGHTH ANNUAL REPORT Exchange and C o n v e r s i o n of Government B o n d s and Notes As in previous years, the bank conducted conversions of Liberty bonds and Victory notes, exchanges from one denomination to another, and exchanges of coupon for registered and registered for coupon. The extent of these transactions during 1922 appears in the following. Pieces Bonds and notes received for conversion or exchange Bonds and notes delivered on conversion or exchange Total Value 1922 1921 1922 1921 5,136,531 7,013,402 $1,883,483,660 $2,791,999,200 848,393 3,506,692 1,885,298,010 2,846,805,850 5,984,924 10,520,091 $3,768,781,670 $5,638,805,050 The bank continued to cash coupons from Government bonds, Federal Farm Loan bonds, War Finance Corporation bonds, and other similar issues. The amount of such coupons aggregated $336,000,000 or 23,000,000 pieces during the year, as compared with $313,000,000 or 26,000,000 pieces in 1921. Treasury Savings Certificates The sale of Treasury Savings certificates in denominations of $25, $100 and $1,000, was continued during 1922. In recognition of generally lower rates for money, the Treasury on October 1,1922, increased the selling price of certificates, which had the effect of reducing the rate of interest on certificates held to maturity from 43^ to about 4 per cent., compounded semi-annually. Sales both here and in other districts were conducted with the continued cooperation of the banks and post-offices. In accordance with an announcement of the Secretary of the Treasury, dated November 13, the option of cash redemption or exchange for new Treasury Savings certificates was offered to holders of War Savings stamps and certificates maturing on January 1, 1923. In the large amount of administrative work involved in this operation, the banks and post-offices participated, and in order to make its facilities in this connection more generally available to the public, this bank opened two offices in uptown New York City. Up to December 31, this bank had effected exchanges of $492,522, and had received $16,608,650 for redemption on January 1. APPENDIX EXHIBITS LETTER TITLE PAGE A Statement of Condition 46-47 B C D Profit and Loss Account Capital and Surplus Accounts Principal Assets and Liabilities each week in 1922 48 49 50—51 E R a t e s in Effect During 1922 F Discounts and Advances G H Open Market Acceptance Purchases Acceptances RediscountM for Member Banks I J Fcdv^ul Reserve Notes Check Collections 52 53 54—55 56 57 58 K Telegraphic Transfers 59 L Gold Settlement F u n d 60-61 M Personnel and Annual Salary R a t e 62 45 EIGHTH ANNUAL REPORT 46 Exhibit A STATEMENT OF CONDITION At the Close of Business, Dec. 31,1922, and Dec. 31,1921 Resources Cash reserves held by this bank against its deposits and note circulation: 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 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 partly in the vaults of the bank and partly with the Treasurer of the United States Gold redemption fund in the hands of the Treasurer of the United States to be used to redeem such Federal Reserve notes as are presented to the Treasury for redemption Legal tender notes, silver, and silver certificates in the vaults of the bank (available as reserve only against deposits) Total cash reserves Loans and investments: Loans to member banks: On the security of obligations of the United States 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 investments (or earning assets) Miscellaneous resources: Bank premises 5% redemption fund in the hands of the Treasurer of the United States for Federal Reserve bank notes (mostly in $1 and $2 denominations) presented to the Treasury for redemption. This fund was closed out on December 28,1922, when the Treasury assumed liability for all such notes remaining unretired Checks and other items in process of collection. All other miscellaneous resources Total miscellaneous resources Total resources Dec. 31, 1922 Dec. 31, 1921 $118,126,581.76 $283,141,669.40 169,378,439.83 130,058,226.99 658,970,228.28 653,004,078.28 10,308,820.39 15,000,000.00 31,313,929.70 50,335,841.00 $988,097,999.96 $1,131,539,815.67 $168,235,591.11 $156,013,679.05 16,053,362.30 60,863,602.89 53,066,308.08 72,593,292.33 167,252,450.00 103,525,400.00 $412,405,006.30 $385,198,679.46 $10,238,178.58 $6,647,921.86 134,303,106.41 1,892,589.25 1,603,360.00 103,362,741.74 2,851,848.89 $146,433,874.24 $114,465,872.49 $1,546,936,880.50 $1,631,204,367.62 FEDERAL RESERVE BANK OF NEW YORK 47 Exhibit A—Continued STATEMENT OF CONDITION At the Close of Business, Dec. 31,1922, and Dec. 31,1921 Liabilities Dec. 31, 1922 Dec. 31, 1921 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 Federal Reserve bank notes in actual circulation, payable on demand. Liability for all such notes has now been assumed by the Treasury $597,071,293.50 $663,363,181.00 Total currency in circulation Deposits: Reserve deposits maintained by member banks as legal reserves against the deposits of their customers United States Government deposits carried at the Reserve Bank for current requirements of the Treasury Other deposits, including foreign deposits, deposits of non-member banks, etc 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 8 days All other miscellaneous liabilities Total miscellaneous liabilities Capital and surplus: Capital paid in, equal to 3 per cent, of the capital and surplus of member banks Surplus—that portion of accumulated net earnings which the bank is legally permitted to retain Total capital and surplus Total liabilities 20,559,200.00 $597,071,293.50 $683,922,381.00 $749,005,902.75 $726,097,832.01 517,656.11 32,616,430.48 11,439,182.74 14,450,428.68 $760,962,741.60 $773,164,691.17 $98,100,885.92 2,313,986.23 $83,847,856.21 2,958,462.10 $100,414,872.15 $86,806,318.31 $28,688,450.00 $27,113,850.00 59,799,523.25 60,197,127.14 $88,487,973.25 $87,310,977.14 $1,546,936,880.50 $1,631,204,367.62 EIGHTH ANNUAL REPORT 48 Exhibit B PROFIT AND LOSS ACCOUNT For the Calendar Years 1922 and 1921 EARNINGS From loans to member banks and paper discounted for them From acceptances owned From United States Government securities owned, including United States Treasury certificates which secured Federal Reserve bank note circulation Other earnings 1922 1921 $3,970,209.76 1,619,512.13 $30,762,021.40 1,829,665.00 5,643,385.44 108,211.41 1,955,969.96 157,282.33 $11,341,318.77 $34,704,938.69 $6,223,404,61 $7,076,187.58 553,124.78 1,091,591.96 843,196.31 443,326.95 Total deductions from earnings $7,619,725.70 $8,611,106.49 Net income available for dividends, additions to surplus, and payment to the United States Government $3,721,593.07 $26,093,832.20 $1,652,138.30 $1,608,721.16 206,945.48 3,782,671.10 1,862,509.29 20,702,439.94 $3,721,593.07 $26,093,832.20 Total earnings DEDUCTIONS FROM EARNINGS For current bank operation. (These figures include the greater portion of expenses incurred as fiscal agent of the United States, since July 1, 1921) 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 For self-insurance and other reserves, depreciation, etc DlSTRIRUTION OF N E T INCOME In dividends paid to member banks, at the rate of 6 per cent, on paid-in capital In additions to surplus. (The bank is permitted by law to accumulate out of earnings a surplus amounting to 100 per cent, of the subscribed capital; and after such surplus has been accumulated to pay into surplus each year 10 per cent, of the net income remaining after paying dividends) In payment to the United States Government as a franchise tax, representing the entire net income of the bank after paying dividends and making additions to surplus. (Federal Reserve notes are not taxed.) Total net income distributed FEDERAL RESERVE BANK OF NEW YORK 49 Exhibit C CAPITAL AND SURPLUS ACCOUNTS Capital Account Reconciliation $27,113,850.00 CAPITAL PAID IN JANUARY 1, 1922 INCREASE: Due to increase of capital and surplus of member banks $1,677,500.00 Due to organization of new National banks 147,100.00 Due to admission of State banks and trust companies 408,300.00 2,232,900.00 29,346,750.00 DECREASE : Due to decrease in capital and surplus of member banks Due to banks liquidating Due to banks withdrawing from system 0 658,300.00 0 658,300.00 PAID IN CAPITAL DECEMBER 31, 1922 $28,688,450.00 Surplus Account Reconciliation $60,197,127.14 SURPLUS ON JANUARY 1, 1922 INCREASE : Due to transfer to surplus of amount previously set aside as a "Reserve for undetermined liabilities".. $1,000,000.00 Due to payment into surplus of 10 per cent, of net income for 1922 remaining after paying dividends.. 206,945.48 1,206,945.48 $61,404,072.62 DECREASE: Due to payment to the Treasury of increments to amounts paid as franchise taxes in 1920 and 1921 SURPLUS ON DECEMBER 31, 1922. 1,604,549.37 $59,799,523.25 EXHIBIT D PRINCIPAL ASSETS AND LIABILITIES-EACH 'WEEK IN 1922 (Amounts in thousands of dollars) Date Total Earning Assets (2+5+6) 1 Jan. 4 . .. . . $355,314 11 .. . .. 18 .. . . . 25 ..... Feb. 1. . . .. 8 ..... 15 .. . . . 21 . . . .. Mar. 1. .... 8 .. ... 15 ..... 22 . . . .. 29 . .... Apr. 5 ..... 12 .. . .. 19 . .. .. 26 .. . .. May 3 .. .. . 10 .. .. . 17 .. ... 24 .. . .. 31 .. .. . June 7 ..... 14 .... . 21 .. .. . 28 .. . . . 252,638 235,831 210,686 263,581 325,746 323,380 248,859 284.,54 3 277,018 377,771 245,696 249,514 257,664 262,65·1 254,635 258,243 324,500 302,511 257,374 280,754 279,993 269,04·0 273,147 228,383 312,546 Bills Discounted for Member Banks Bills. Secured by Other Total U ... GovBills ernment Discounted Obligations 2 4 3 $199,303 164,276 141-,256 118,295 119,212 152,777 140,789 100,973 90,323 68,431 64,298 68,891 74,4.46 87,591 66,272 61 ,263 47,092 68,171 48,052 44,935 63,769 43,]56 39,302 42,737 33,593 87,840 $153,604 128,965 104,746 83,078 92,442 111,432 86,258 54,168 61,530 41,279 37,970 34,063 47,528 64·,202 43,338 41,759 30,932 48.055 30,057 26,101 37,559 24,263 23,274 25,799 18,327 70.233 $405,699 35,311 39,510 35,217 26,770 41,345 54,531 46,805 28,793 27,152 26,328 34,828 26,918 23,389 22,934. ]9,504 16.160 20,116 17,995 18,834 26,210 18,893 16,028 16,938 15,266 17,607 Bills Bought in O~en Mar et United tates Securities Total Cash Reserves Member Banks' Reserve D eposits Total Deposits 5 6 7 8 9 $58,06.6 22,676 35,607 28,232 36,560 40,402 19,277 23,007 32,034 34,179 28,428 33,128 45,553 37,857 35,1\74 27,976 25,281 45,671 41,901 24,186 31,259 44,047 37,910 26,438 23,518 46.226 $97,975 65,686 55,968 64·,159 107,809 132,567 163,314 124,879 162,186 174,408 285,045 14.;l,677 129,515 132.216 160,908 16;',396 185,870 210,658 212,555 188,253 185,726 192,790 191 ,828 203,972 171,272 ]78.1\80 $1,119,045 1,172,458 1,155,802 1,180,867 1,138,060 1,106,122 1,101,262 1,144,691 1,122,445 1,125,577 1,090,551 1,116,950 1,151,14-7 1,145,575 1,157,266 ],164,288 1,163,204 1,136,488 1,156,555 1,189,775 1,187,996 1,172,542 1,196,296 1,165,325 1,184.,536 1.203.833 $713,943 708,588 651,480 652,31-1 662,370 686,330 689,778 650,439 674.,04·3 681,233 757,553 634,980 684,951 678,641 696,978 702,383 701,016 704,]27 731-,316 734,777 750,841 720,343 743,188 732,835 718,106 805 .166 $747,565 723,589 707,910 712,291 727,828 739,135 722,169 6117,508 707,947 698,074 772,093 662,868 702,464 698,294 716,776 738,839 729,851 763,886 765,062 762,060 778,940 746,903 773,127 765,140 729,613 826.330 Federal Reserve Reserve Notes in PercentCirculation ages 10 $663,073 626,329 611,792 605,082 614,031 615,027 621,792 626,544 626,673 628,280 626,501 625,844 625,774 633,156 625,426 621,684 615.475 623;900 619,314 617,404 614,887 625,246 620,153 616,159 6]7,810 618.785 11 79 . 3 86 . 9 87.6 89.6 84 .8 81.7 81. 9 87.1 84 . 1 84.9 78.0 86 . 7 86.7 86.0 86.2 85 . 6 86.5 81.9 83 . 5 86 . 2 85 .2 85 .5 85 . 9 84.4 87 . 9 83.3 Exhibit D—Continued Date July 5 12 19 26 Aug. 2 9 16 23 30 Sept. 6 13 20 27 Oct. 4 11 18 25 Nov. 1 8 15 22 29 Dec. 6 13 20 27 1 $326,098 319,276 321,607 255,314 229,742 216,496 222,402 237,423 241,652 268,725 260,877 244,769 267,989 301,845 390,257 322,154 263,707 307,661 320,469 327,176 270,723 252,340 331,698 298,422 312,049 307,286 2 $108,495 73,688 93,726 30,610 38,882 33,759 40,925 46,850 44,821 48,276 41,972 44,670 46,636 57,777 150,267 102,506 85,926 161,018 183,602 194,456 160,977 137,022 208,046 183,882 142,356 144,810 3 4 5 $68,295 58,506 69,495 16,216 22,037 15,529 21,852 28,482 24,694 26,171 21,438 18,048 24,750 36,529 110,261 57,515 63,061 121,125 127,649 159,961 134,900 108,934 177,085 160,669 126,029 125,487 $40,200 15,182 24,231 14,394 16,845 18,230 19,073 18,368 20,127 22,105 20,534 26,622 21,886 21,248 40,006 44,991 22,865 39,893 55,953 34,495 26,077 28,088 30,961 23,213 16,327 19,323 $46,924 46,363 40,399 37,572 33,331 26,359 26,835 40,431 45,810 59,320 67,414 72,011 80,545 81,376 85,589 85,401 78,670 79,636 75,345 75,200 60,225 56,375 58,925 51,224 41,225 45.789 6 $170,679 199,225 187,482 187,132 157,529 156,378 154,642 150,142 151,021 161,129 151,491 128,085 140,808 162,692 154,401 134,247 99,111 67,007 61,522 57,520 49,521 58,943 64,727 63,316 128,468 116,687 7 $1,118,380 1,139,590 1,134,730 1,173,233 1,189,159 1,167,424 1,145,868 1,165,030 1,163,812 1,121,728 1,104,827 1,091,342 1,094,930 1,065,263 1,055,206 1,104,276 1,083,799 1,082,309 1,055,619 1,059,493 1,093,592 1,097,573 1,036,008 1,034,003 1,016.196 1.055,982 8 $724,200 771,550 759,212 731,617 746,735 691,613 682,552 700,222 710,752 698,254 693,487 655,266 690,325 702,210 769,834 781,805 685,870 720,186 683,356 711,072 713,569 679,289 704,183 680,828 700,790 707,106 9 $744,156 787,493 786,473 753,839 759,881 708,198 699,763 734,111 741,321 722,704 714,692 687,251 704,093 717,377 781,313 795,418 703,975 751,789 704,925 758,128 738,963 697,498 733,053 694,741 715,111 720,336 10 $642,355 622.754 616,469 616,779 623,044 621,278 613,644 609,556 606,993 615,358 604,842 605,186 604,481 610,763 611,984 605,330 595,140 598,764 604,301 588,415 580,198 594,003 593,520 591,809 605,539 599,001 11 80.7 80.8 80.9 85.6 86.0 87.8 87.2 86.7 86.3 83.8 83.7 84.4 83.7 80.2 75.7 78.8 83.4 80.1 80.6 78.7 82.9 85.0 78.1 80.4 79.2 80.0 >1 t" H w < td 52 EIGHTH ANNUAL REPORT Exhibit E RATES IN EFFECT DURING 1922 For Discounts and Advances to Member Banks Period January 3-June 21 June 22-December 31 Rates on All Classes of Eligible Paper 4 For Open Market Purchases of Bankers Acceptances Minimum Rates Period January 1-18. 19-31 February March April 1-6 7-30 . . . May June 1-21... . 22-30... July August September.... October November.... December... . FEDERAL RESERVE BANK OF NEW YORK 53 Exhibit F DISCOUNTS AND ADVANCES Total Made Each Month, 1922 and 1921 1922 1921 Month Number of Items Amount Number of Items Amount January.... February... March April May June July August September.. October. . . . November.. December.. 6,438 5,405 6,261 4,665 5,410 5,269 4,405 3,976 4,538 4,913 4,732 4,703 $945,228,301.93 745,682,000.68 482,865,862.32 453,641,385.25 277,364,584.90 345,164,080.11 617,935,631.29 344,202,169.31 391,409,970.31 1,046,396,172.94 1,703,058,212.80 1,853,415,414.18 19,809 21,275 17,131 9,071 9,646 11,118 10,642 11,188 10,648 10,163 8,982 10,195 $5,565,144,209.93 5,631,398,234.04 4,271,627,879.35 2,469,906,248.38 1,861,355,701.08 1,282,758,514,96 1,797,400,547.81 1,598,703,932.16 1,091,256,096.50 1,564,585,700.36 1,355,335,082.94 2,279,517,775.01 Total 60,715 $9,206,363,786.02 149,868 $30,768,989,922.52 Type and Maturity of Bills Held December 31, 1922 Maturity Within 15 days. 16-30 days 31-60 days 61-90 days Over 90 days. . 91-120 days... 121-150 days... 151-180 days... Discounts or Advances Based on United States Securities Discounts or Advances Based on Commercial Paper Purchased Bills Total $167,918,331.11 $10,137,302.34 $37,592,010.61 $215,647,644.06 2,148,191.53 9,393,383.59 11,541,575.12 8,984,655.68 11,582,533.12 2,447,224.94 150,652.50 3,513,563.85 4,992,621.84 166,607.50 1,312,450.49 8,193.00 8,193.00 1,314,303.29 1,314,303.29 38,950.05 38,950.05 26,735.82 26,735.82 Total Dec. 31, 1922. $168,235,591.11 $16,053,362.30 $60,863,602.89 $245,152,556.30 Average maturity in 22 days 8 21 12 Total Dec. 31,1921. $156,013,679.05 "$53,066,308.08 $72,593,292.33 $281,673,279.46 Average maturity in days 23 15 8 13 Total Dec. 31,1920. $454,751,722.52 $416,686,474.82 $113,740,374.53 $985,178,571.87 Average maturity in days 13 28 16 16 Total Dec. 31,1919.. $562,089,842.45 $228,713,445.79 $202,902,609.54 $993,705,897.78 Average maturity in days 18 44 21 14 Total Dec. 31, 1918.. $652,567,674.72 $44,773,780.97 $77,576,632.94 $774,918,088.63 Average maturity in days 13 17 15 28 ^Includes agricultural paper and acceptances discounted. Exhibit G OPEN MARKET ACCEPTANCE PURCHASES Bills Bought for the Account of the Federal Reserve Bank of New York in 1922 Bankers Acceptances Import and Export Bankers Domestic Acceptances $35,112,897.56 53,163,205.24 60,444,500.59 35,018,088.80 53,474,554.63 52,461,556.82 59,865,547.52 63,106,195.08 84,848,511.34 54,398,912.98 41,659,410.98 60,866,416.27 $10,394,667.51 18,209,415.54 17,557,171.58 6,725,044.91 11,948,173.57 11,739,359.30 10,213,800.39 11,177,530.27 19,980,355.15 25,910,861.54 12,947,085.32 17,578,870.90 777,358.51 405,466.45 356,877.29 1,139,955.81 607,036.20 818,204.99 393,236.66 $3,718,450.00 3,382,855.45 6,791,500.00 2,467,953.17 1,182,144.00 1,880,559.78 1,968,769.70 3,429,996.99 3,131,000.00 1,361,629.06 3,288,000.00 4,520,000.00 Total 1922... $654,419,797.81 $174,382,335.98 $5,215,711.49 $37,122,858.15 $292,040.00 Total 1921... $551,922,942.75 $151,392,534.32 $6,181,961.18 $90,310,610.48 $5,000.00 Month January February March April May June July August September October November December Indorsed Trade Bills of Foreign Origin $123,363.05 416,939.53 177,273.00 Bills Drawn to furnish Dollar Exchange Domestic Trade Acceptances $148,715.00 143,325.00 o Total 1922 $49,226,015.07 74,878,839.28 85,210,111.70 44,388,359.88 66,604,872.20 66,858,834.41 72,453,584.06 78,070,599.63 109,248,537.30 82,421,764.78 58,712,701.29 83,358,523.83 Total 1921 $60,107,497.34 58,060,970.19 78,089,388.89 71,580,181.38 72,685,746.47 24,409,833.57 14,415,568.12 63,566,966.02 41,382,213.51 85,278,359.43 84,151,691.21 146,084,632.60 $871,432,743.43 $799,813,048.73 H od Exhibit G—Continued OPEN MARKET ACCEPTANCE PURCHASES Bills Bought for the Account of Other Federal Reserve Banks in 1922 Month January February March April May June July August September October November December Bankers Acceptances Import and Export Bankers Domestic Acceptances Indorsed Trade Bills of Foreign Origin Bills Drawn to furnish Dollar Exchange Domestic Trade Acceptances Total 1922 $12,321,873.86 11,453,505.23 10,784,732.79 4,605,008.19 7,416,036.26 13,929,257.57 14,967,696.51 25,981,346.73 36,141,958.68 32,365,566.26 46,022,535.63 34,985,761,08 $2,214,950.93 2,360,069.56 2,844,610.52 926,192.46 3,382,555.08 3,788,953.17 1,888,326.05 4,642,379.24 7,822,107.65 9,083,834.01 9,657,697.52 7,346,402.85 $719,018.00 464,016.00 205,000.00 100,000.00 1,205,892.30 360,000.00 231,000.00 880,284.19 1,171,187.78 531,424.02 1,212,600.00 1,777,300.00 $15,255,872.79 14,277,590.79 13,834,343.31 5,631,200.65 12,004,483.64 18,078,210.74 17,087,022.56 31,504,010.16 45,135,254.11 41,980,824.29 56,892,833.15 44,109,466.93 $250,975,281.79 $55,958,079.04 $8,857,752.29 $315,791,113.12 Total 1921... $141,642,317.52 $38,850,959.92 Total 1922... $31,345.52 $13,946,914.94 Total 1921 $17,564,706.30 62,719,026.62 21,876,475.10 12,724,004.69 10,741,523.37 6,139,094.21 3,261,903.45 7,673,744.95 6,846,890.20 8,455,406.95 14,968,113.82 21,500,648.24 > $194,471,537.90 en en EIGHTH ANNUAL REPORT 56 Exhibit H ACCEPTANCES REDISCOUNTED FOR MEMBER BANKS IN 1922 Distribution by Months and Classes of Bills Month Bankers Acceptances Trade Acceptances Total Domestic January... February.. March.... April May June July August.... September. October. .. November. December. Foreign $85,632.61 35,000.00 71,395.68 $871,472.19 692,743.49 675,857.56 467,507.23 1,182,521.57 1,097,798.06 758,739.13 555,860.00 136,659.92 122,874.12 142,213.55 501,661.15 461,300.00 822,139.79 19,000.00 $871,472.19 692,743.49 675,857.56 482,194.50 1,182,521.57 1,097,798.06 758,739.13 555,860.00 136,659.92 669,806.73 999,353.34 592,056.83 Total 1922. $192,028.29 $7,205,907.97 $1,317,127.06 $8,715,063.32 Total 1921. $23,192,384.07 $33,321,307.25 $195,888.20 $56,709,579.52 $14,687.27 FEDERAL RESERVE BANK OF NEW YORK 57 Exhibit I FEDERAL RESERVE NOTES Movement between Federal Reserve Bank of New York and other Federal Reserve Banks, 1922 Notes of Federal Reserve Bank of New York Received from other Federal Reserve Banks From Boston Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total Notes of Other Federal Reserve Banks Shipped by Federal Reserve Bank of New York Amount $43,458,500 41,116,250 15,393,000 12,085,450 8,778,310 19,342,000 4,126,700 1,777,200 2,790,250 2,011,800 7,767,820 $158,647,280 To Boston Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total Amount $47,975,200 55,449,250 31,836,300 19,254,850 19,714,500 39,506,700 4,074,800 2,767,850 3,003,100 1,781,950 13,013,050 $238,377,550 Issues, Retirements, and Amount Outstanding Total issued to the bank by the Federal Reserve Agent: 1914 to 1921, inclusive During 1922 Notes unfit for circulation retired: 1914 to 1921, inclusive During 1922 $2,855,923,000.00 470,200,000.00 $3,326,123,000.00 $2,039,176,500.00 512,012,620.00 a2,551,189,120.00 Amount outstanding December 31, 1922 $774,933,880.00 Amount outstanding December 31, 1922: In actual circulation Held by Federal Reserve Bank $597,071,293.50 177,862,586.50 Total On December 31, 1922, the Federal Reserve Agent held against Federal Reserve notes: Gold and gold certificates Eligible paper Total $774,933,880.00 $658,970,228.28 220,389,024.83 ,$879,359,253.11 a Includes $288,033,000 of notes fit for circulation returned by the bank and by the United States Treasurer. Exhibit J en CHECK COLLECTIONS Classification of Checks Handled by the Federal Reserve Bank of New York in 1922 (Amounts in thousands of dollars) Excluding duplications between main bank and branch Month On Treasurer of United States Number Jan. . Feb., Mar. Apr. May. June. July. Aug. Sept. Oct.. Nov. Dec. 940,483 889,674 1,113,693 1,084,382 999,335 1,052,764 869,901 1,096,567 1,073,655 1,211,107 1,117,188 1,111,915 Amount $82,965 116,553 116,891 99,035 92,629 105,240 112,780 117,270 93,494 128,634 95,489 121,844 On banks in Other Federal Reserve Districts Number Amount On New York Clearing House Number 1,008,646 $119,219 1,570,810 901,404 102,478 1,334,369 1,095,552 120,407 1,679,886 1,047,836 120,374 1,619,612 1,080,970 121,434 1,732,279 1,093,442 121,118 1,667,564 1,006,895 113,921 1,788,374 1,004,035 118,414 1,716,438 1,061,379 131,466 1,831,202 1,240,357 155,929 1,866,161 1,235,560 146,277 1,608,160 1,356,435 147,756 1,855,444 Amount $1,596,834 1,395,469 1,660,806 1,572,196 1,546,868 1,717,597 1,633,765 1,586,920 1,677,993 1,869,995 1,684,201 1,925,856 On New York City Outside of Clearing House Number Amount On All Other Banks in Second District Number Amount TOTAL Number Amount 307,686 $1,666,492 4,300,829 $574,365 8,128,484 $4,039,875 292,177 2,045,793 3,840,061 480,510 7,257,685 4,140,803 356,224 2,384,482 4,677,601 590,748 8,922,956 4,873,334 334,761 2,402,805 4,554,052 589,802 8,670,643 4,784,212 345,752 2,435,755 4,868,897 617,476 9,027,233 4,814,162 326,032 2,535,862 5,075,015 652,092 9,214,817 5,131,909 339,795 2,265,537 4,984,927 645,970 8,989,892 4,771,973 377,390 2,747,331 4,937,583 638,397 9,132,013 5,208,332 384,904 2,818,247 4,925,010 661,662 9,276,150 5,382,862 376,335 3,333,671 5,349,338 698,801 10,043,298 6,187,030 382,217 2,863,147 5,310,279 676,156 9,653,404 5,465,270 410,449 2,571,978 5,765,922 743,180 10,500,165 5,510,614 TOTAL. 12,560,664 $1,282,824 13,132,511 $1,518,793 20,300,329 $19,868,500 4,233,722 $30,071,100 58,589,514 $7,569,159 108,816,740 $60,310,376 Buffalo.. 167,642 $25,928 1,584,583 $261,777 a2,615,531 a$l,056,343 5,404,677 $625,698 9,772,433 $1,969,746 GRAND TOTAL. 12,728,306 $1,308,752 14,717,094 $1,780,570 22,915,860 6$20,924,843 4,233,722 $30,071,100 63,994,191 $8,194,857 118,589,173 $62,280,122 a On Buffalo Clearing House. 6 On New York and Buffalo Clearing Houses. hH 1 a 23 23 d O H Exhibit K TELEGRAPHIC TRANSFERS Daily Average Amount Transferred (in thousands of dollars) Number of Transfers CO Month January. .. February.. March April May June July August.... September. October. .. November. December. 1917 1918 1919 1920 1921 1922 31 35 38 48 73 70 65 80 88 101 112 110 135 142 168 188 187 209 211 213 213 221 235 270 281 283 316 342 368 371 375 388 425 423 466 502 510 501 534 577 640 741 721 682 645 615 697 711 650 686 733 800 871 731 731 747 723 725 773 774 739 726 824 889 887 867 1917 1918 1919 1920 1921 1922 $31,801 28,536 30,893 37,304 47,191 50,308 $49,138 50,064 42,693 54,740 55,046 70,647 67,710 54,046 55,640 98,785 68,018 86,149 $61,452 54,293 60,427 49,146 47,515 57,251 69,702 61,420 69,960 60,311 62,597 70,495 $63,012 55,790 58,394 54,051 50,651 53,973 53,003 49,652 61,765 65,127 58,022 63,792 $59,498 50,885 57,417 53,439 58,757 63,248 53,153 56,034 66,536 62,612 71,315 68,930 $65,714 70,847 73,723 73,355 81,484 92,846 80,924 77,602 90,343 107,409 84,956 98,662 td !> W o i Exhibit L GOLD SETTLEMENT FUND Amounts Received and Paid by the New York Federal Reserve Bank in 1922 in Settlement of Accounts Due From or to Federal Reserve Banks: Boston Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Treasurer of United States. Federal Reserve Agent.. .. Gold Redemption Fund. . . Total 1922. Received Paid Net gain or loss 1921. Net Loss M I—I Q $4,333,808,864.70 4,441,623,613.40 2,244,756,712.55 1,786,741,665.23 790,767,660.39 4,402,465,851.29 969,665,261.33 460,268,148.97 652,483,435.13 472,680,071.98 1,643,207,833.58 318,774,620.00 230,000,000.00 5,000,000.00 $4,302,720,070.85 4,281,141,102.62 2,056,852,300.90 1,780,205,334.64 1,061,711,127.92 4,673,397,339.31 905,769,209.65 509,977,462.76 648,058,267.33 680,571,168.43 1,459.095,775.38 48,324,059.98 260,000,000.00 45,100,305.94 $31,088,793.85 160,482,510.78 187,904,411.65 6,536,330.59 $22,752,243,738.55 $22,712,923,525.71 $908,895,884.57 Net gain or loss 1922. Total 1921. Net Gain a a $270,943,467.53 270,931,488.02 63,896,051.68 4^25.167.80 184,112,058.20 270,450,560.02 49J09,313.79 207,89i,09&45 30,000,000.00 40,100,305.94 $869,575,671.73 $39,320,212.84 $19,890,844,558.82 $19,806,688,228.29 $1,123,307,648.79 $84,156,330.53 $1,039,151,318.26 o FEDERAL RESERVE BANK OF NEW YORK 61 Exhibit L—Continued GOLD SETTLEMENT FUND Net Gains and Losses Each Week During 1922 for the Account of the Federal Reserve Bank of New York (Amounts in thousands of dollars) Week Ended Dec.28,1921 Jan. 4, 1922 11.... 18.... 25.... Feb. 1.... 8.. . . 15.... 21.. .. Mar. 1.... 8.. .. 15.... 22.... 29.... Apr. 5.... 12.... 19.... 26.... May 3 10.... 17.... 24.... 31.. .. June 7.... 14.... 21.... 28.... July 5.... 12.... 19.... 26.... Aug. 2.... 9.... 16.... 23.... 30.... Sept. 6.... 13.... 20.... 27.... Oct. 4.... 11.... 18.... 25.... Nov. 1.... 8.. .. 15.... 22.... 29.... Dec. 6 13.... 20.... 27.... Wire Transfers and Checks Drawn United States Treasury Transfers Other Transferred Net Change Balance $855 + 14,442 - 14,933 + 32,568 - 37,828 - 27,786 1,191 + 8,120 - 20,221 3,743 - 55,080 - 59,476 + 2,768 - 31,464 + 18,198 + 14,232 + 10,382 - 23,378 + 23,442 + 41,559 + 1,039 - 10,962 + 24,015 - 30,999 -102,672 - 7,388 - 85,377 + 13,776 - 11,779 + 33,795 - 61,133 - 17,061 - 29,554 + 21,342 + 4,060 - 30,368 - 17,969 - 83,184 5,355 - 60,480 - 14,877 + 1,258 - 26,048 - 15,937 - 23,942 + 13,313 + 44,109 + 17,664 - 30,091 - 16,230 9,521 + 8,897 - $2,000 + 8,500 - 5,000 - 4,000 - 8,000 - 3,000 -$22,269 - 4,530 - 27,702 1,036 + 9,592 + 6,750 180 - 31,146 + 931 + 172 + 30,571 -$25,124 + 18,412 - 47,635 + 27,532 - 36,236 - 24,036 - 1,371 + 18,974 — 19,290 + 3,429 - 3,009 + 28,293 + 36,040 - 2,522 + 12,981 + 7,468 - 29,796 — 23,552 + 20,152 + 36,109 264 — 11,951 + 23,353 - 34,319 + 18,437 + 22,736 - 86,067 + 18,527 - 35,264 + 39,521 - 13,311 - 18,330 - 16,984 + 55,800 + 4,483 - 33,993 + 5,863 - 9,947 + 53,085 - 21,726 + 33,748 + 72,731 - 5,869 + 8,555 - 20,887 + 10,829 + 42,253 — 14,769 — 29,960 - 4,334 + 33,021 - 36,577 $141,463 116,339 134,751 87,116 114,648 78,412 54,376 53,005 71,979 52,689 56,118 53,109 81,402 117,442 114,920 127,901 135,369 105,573 82,021 102,173 138,282 138,018 126,067 149,420 115,101 133,538 156,274 70,207 88,734 53,470 92,991 79,680 61,350 44,366 100,166 104,649 70,656 76,519 66,572 119,657 97,931 131,679 204,410 198,541 207,096 186,209 197,038 239,291 224,522 194,562 190,228 223,249 186,672 + 42,000 + + + + + - 7,000 21,500 88,000 34,000 30,000 6,000 7,000 11,000 - 4,000 5,000 231 728 - 1,058 + 783 + 236 - 29,178 — 174 + 710 450 500 + + + + + + + + + - 3,000 3,000 120,500 27,000 3,000 5,000 3,000 5,000 76,000 4,000 14,000 3,000 2,000 2,000 + + + + + + + + + - 80,000 20,000 36,000 12,000 55,500 19,000 23,000 5,000 500 5,000 500 + 20,500 + 43,000 + 7,000 803 + + + + + + + + + + + + + + + - + - 989 2,338 320 609 3,124 3,690 249 26,485 726 28,178 2,731 1,430 31,458 2,423 1,625 24,332 6,763 38,440 2,754 36,625 15,973 1,179 1,492 1,945 2,984 3,144 32,433 131 8,604 458 - 52,474 EIGHTH ANNUAL REPORT 62 Exhibit M PERSONNEL AND ANNUAL SALARY RATE Distribution by Departments, December 31, 1922 FUNCTION Officers Procedure Committee Architectural Office LAW FUNCTION Legal Department ACCOUNTS FUNCTION Accounting Department Methods and Supplies Department Men Women 40 2 6 Total 40 2 8 Salaries (per annum rates) $495,200 7,500 30,413 2,660 90 30 75 11 165 41 266,560 69,340 ADMINISTRATION FUNCTION Office Service Department Personnel Service Department Personnel Development Department 263 14 12 99 53 50 362 67 62 504,440 98,910 60,000 CASH AND CUSTODY FUNCTION Cash Department Custody Department 219 67 232 10 451 77 670,550 144,440 COLLECTION FUNCTION Check Department Collection Department Clearance Arrangements Northern New Jersey Clearing House Association 240 163 1 369 152 609 315 1 677,940 378,960 4,000 4,500 FOREIGN RELATIONS FUNCTION Foreign Department LOAN FUNCTION Credit Department Discount Department INVESTMENT FUNCTION Bill Department Securities Department FISCAL AGENCY FUNCTION Certificates of Indebtedness Department Government Bond Department Government Loan Organization Department FEDERAL RESERVE AGENT'S FUNCTION Member Bank Relations Department.. . Note Issues Department Bank Examinations Department Statistics Department AUDITING FUNCTION Auditing Department TOTAL BUFFALO BRANCH Banking Departments Fiscal Agency Department GRAND TOTAL 15,500 27 27 10 21 37 48 64,720 82,780 2 26 16 2 42 5,800 72,960 17 92 5 84 22 176 43,580 276,160 115 80 195 285,960 1 2 10 27 2 1 2 30 6 3 12 57 19,420 5,880 28,560 105,180 67 11 78 166,880 1,574 1,316 2,890 $4,588,793 53 8 71 21 124 29 139,480 28,460 1,635 1,408 3,043 $4,756,733
@FedFRASER