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Ninth Annual Report

Federal Reserve Bank
of New York
For the Year Ended December 31, 1923

•

Second Federal Reserve District




Ninth Annual Report

Federal Reserve Bank
of New York
For the Year Ended December 31
1923




Second Federal
Reserve District

LETTEE

OF

T R A N S M I T T A L

FEDERAL RESERVE BANK
OF NEW YORK

New York, January 16, 1924.

GENTLEMEN :

I have the honor to submit herewith the ninth annual report of
the Federal Reserve Bank of New York,
covering the year 1923.
Respectfully,
PIERRE JAY,

Chairman and Federal Reserve Agent.

FEDERAL RESERVE BOARD,

Washington, D. C.




Table of Contents
PAGE

Directors and Officers
I.

Business and Credit conditions in the District in 1923

II.

Bank operations
Statement of Condition

4-5
.

.

.

.

6-10
11-39
11

Income and Disbursements

12—16

Earning Assets

17-25

Federal Beserve Currency
Beserves and Eeserve Position

25-26
27

Collections and Clearings

27-31

Eelations with Member Banks

31-34

Custody of Securities
Belations with Foreign Banks

34
34

Organization of the Bank

35-37

Bank Premises

37-38

Buffalo Branch

39

III. Fiscal agency operations

40-44

Appendix

45-64




Federal Reserve Bank
of New York
DIRECTORS AND OFFICERS, JANUARY 1, 1924
DIRECTORS
Term
Expires
Deo. SI

Class Group
A

1 GATKS W. MCGARRAH, New York City

1925

Chairman, The Mechanics and Metals National Bank
A

2

EOBERT H. TREMAN, Ithaca, N. Y

1926

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 THEODORE F. WHITMARSH, New York City

1926

President, Francis H. Leggett & Company
B

3 FRANK L. STEVENS, North Hoosick, N. Y

C
C

President, Stevens and Thompson, Inc.
PIERRE JAY, New York City, Chairman
W. L. SAUNDERS, Plainfield, N. J., Deputy Chairman
Chairman, Ingersoll-Eand Company

G

1924

CLARENCE M. WOOLLEY, New York City

.

.

1925
. 1926
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
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.

DIRECTORS AND OFFICERS, JANUARY 1, 1924—Cont'd.
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 Indeotedness
Department and Manager,
Securities Department

BETHUNE M. GRANT,

JOSEPH L. MORRIS,

Manager, Government Bond Department
WILLIAM A. HAMILTON,

Manager, Credit Department
HENRY E. MURRAY,

Manager, Building Maintenance
Department

Manager, Securities Custody
Department

HOWARD M. JEFFERSON,

EOBERT M. O 'HARA,

Manager, Personnel Development

Manager, Bill Department

Department

JAMES M. EICE,

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
LESLIE E. BOUNDS, 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. EANDOLPH BURGESS,

WILLIAM H. DILLISTIN,

Assistant Federal Reserve Agent

Assistant Federal Reserve Agent
and Manager, Bank Examinations Department
GEORGE B. EOBERTS, Manager, Reports Department

BUFFALO BRANCH
Directors
FRED J. COE,

ELLIOTT C. MCDOUGAL,

President, Power City Bank,
Niagara Falls

President, Marine Trust
Company, Buffalo

WOLCOTT J. HUMPHREY,

HARRY T. EAMSDELL,

President, Wyoming County National
Bank, Warsaw
JOHN A. KLOEPFER,

President, Mfrs. and Traders
National Bank, Buffalo
CARLTON M. SMITH,

President, Liberty Bank of Buffalo

President, Smith, Fassett &
Company, 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




\

1913 AVERASI
.X

too

i
1919

1922

1920

1923

Index of Production in Basic
Industries
(1919 Average=100 per cent.)
Allowance has been made for
seasonal fluctuations

19 Z 2

1919

Department of Labor Index Number
of Wholesale Commodity Prices
(1913 Average = 100 per cent.)

J"E*CfNt
U50

1319 »vtn»«

100
\

/

\

rsf

50

1921

1923

Index of the Dollar Value of Wholesale Trade in the Second District
(1919 Average=100 per cent.)
Allowance has been made for seasonal fluctuations but not for changes
in prices or normal year to year
growth




1919

1921

Index of the Dollar Value of Retail
Trade in the Second District
(1919 Average = 1 0 0 per cent.)
Allowance has been made for seasonal fluctuations but not for changes
in prices or normal year to year
growth

BUSINESS AND CREDIT CONDITIONS
IN THE DISTRICT IN 1923

T

HE business and credit conditions under which the
Federal Reserve Bank of New York operated during
1923 mav be summarized as follows:

Industry and Trade
The movement of business in the early part of 1923 was a
continuation of the upward trend which had marked the year
1922, and from March to May new high figures in many lines of
industry and trade were reached. For the balance of the year
there was some tendency toward a decreasing volume of business, but in most lines activity was continued at a high enough
rate to yield unusually high figures for the year as a whole.
This upward tendency of business in the early part of the year
and the declining tendency which followed, were accompanied
by a similar movement in commodity prices. The charts facing
this page picture the tendencies of the year in production,
wholesale and retail trade, and prices. Freight car loadings,
employment, bank clearings, and other phases of industry and
trade showed similar tendencies, when the usual seasonal
changes are taken into consideration.
An unusual factor of the business expansion and moderate
decline in 1923 is found in the absence of that heavy speculation
and large overstocking of goods, which frequently characterized
periods of unusual business activity in the past. This was true
notwithstanding the fact that there existed in the country the
basis for an expansion in bank credit far larger than that which
actually took place. That the period of unusual activity passed
without the occurrence of large speculative commitments, may
be ascribed mainly to a sound policy of caution on the part of
both business men and bankers.

Gold Imports and the Volume of Credit
During the year 1923 the net imports of gold were $294,000,000, following the net importation of $238,000,000 in 1922 and
$667,000,000 in 1921, bringing the total to $1,377,000,000 since
the cessation of the outward flow in 1920. In the earlier part
of this period of gold inflow much of the incoming gold was




8

NINTH ANNUAL REPORT

used to liquidate the indebtedness of member banks at the
Federal Reserve Bank. Throughout most of 1922 and 1923,
however, the incoming gold was not used for this purpose, but
was available as a basis for the creation of additional bank
credit.
As all bank credit is based in the final analysis upon bank
reserves, the amount of credit outstanding tends to keep in
rather constant relationship with the amount of bank reserves
available. When gold is imported from abroad it is usually
deposited by a member bank in the Federal Reserve Bank where
it serves to increase bank reserves, first those of the member
bank depositing it, and then those of other banks to which, in
the course of the rapid flow of credit it is soon transferred.
Gold imports, therefore, automatically increase bank reserves
and not only permit but in times of business activity are likely
to effect an increase of bank credit from three to six or more
times the amount of gold so imported. On the basis of the more
than $1,200,000,000 of gold imported into this country since
January 1921, there has been an expansion in bank deposits
amounting to about $5,000,000,000, the major part of it taking
place in the year 1922. This occurred without additional borrowings from the Federal Reserve Banks. The deposit of the
gold in the Federal Reserve Banks, however, has greatly increased their power to extend additional credit should it be
required. It also has concentrated the gold where member
banks could readily obtain it for export, if required, by borrowing at their Reserve Banks.
Money Rates
One effect of continued gold imports and expansion in bank
credit has been an easier tendency in interest rates. As business activity increased in 1922 and early 1923 interest rates
rose also, but interest rates on commercial paper in the open
market did not rise above the 5^2 per cent, rate which prevailed
during September and October 1923. The rates on other types
of paper, including the open market rates on Treasury certificates, bankers bills, and call money, and the rates charged by
banks to their customers, have been correspondingly low.
The comparative steadiness of interest rates throughout the
year, in spite of the large monthly movements of funds into and
out of New York City, indicates the stabilizing influence which
ready recourse to the Federal Reserve Bank exerts. The following chart shows the usual course of interest rates on commercial paper before and since the establishment of the Federal
Reserve System.



FEDERAL RESERVE BANK OF NEW YORK
+ 25%
+ 20%
*

+ 15?
+ 10%

A,A.
V

/

1917 -1923
SEA; ONAL
YEARLY \
AVERAGE

-

r

1

5%

-10% \
-15%

V

\

r*

i 1890 -1908

\

'

SEAi ONAL

-20%
-25%

JAN.

FEB.

MAR

APR.

MAY

JUN.

JUL.

AU&.

5EP.

OCT.

NOV.

DEC.

Typical Seasonal Changes in Interest Rates on 60 to 90 Day Commercial
Paper for the Years 1890 to 1908 and the Years 1917 to 1923. Weekly Variations are shown as Percentage Deviations from the Yearly Average

Rediscounts and Open Market Operations
The earning assets of the Federal Eeserve Bank of New
York, and of the System as a whole, were not increased except
temporarily for brief periods during the entire business expansion between the middle of 1921 and the spring of 1923.
During the latter months of 1922 and during 1923 there was,
however, a change in the type of earning assets held by the
Federal Reserve Banks. In the middle of 1922 more than half
of the earning assets held by the Federal Reserve Banks was
in the form of United States securities, which had been acquired
in the open market, but in the latter months of 1922 and during
1923 these investment holdings of securities were gradually
reduced either by redemption at maturity or by selling them
in the open market. When placed upon the market they were
purchased by banks or other investors, thereby tending to bring
about an increase in the direct borrowing by member banks at
the Federal Reserve Banks. This operation had the effect of
placing upon member banks the responsibility for the amount of
Federal Reserve credit called into use; it also required them to
pay for this credit at the published rates of the Reserve Banks
at which they borrowed.



10

NINTH ANNUAL REPORT

In an editorial in the Federal Reserve Bulletin for January
1924, the Federal Reserve Board makes the following comment
on the effect of the increase in direct member bank borrowing:
"With the growth of discounts, however, which accompanied the
reduction in the holdings of Government securities, the influence of
existing discount rates was extended to a larger proportion of the
total Federal Reserve Bank credit in use, and the cost of obtaining
Reserve Bank credit was borne more directly by member banks.
Changes in discount rates made with a view of influencing the
demand for rediscount accommodation from Federal Reserve Banks
are better understood by the general public than open market operations. The experience of the past year, however, shows that changes
in the volume of securities held by the Reserve Banks, when such
changes are well timed, are capable of exerting an important and
useful influence on credit conditions. The weekly statement of condition of the Federal Reserve Banks shows the amount and composition of open market holdings and makes it possible for the public to
follow these changes from week to week.''




II
BANK OPERATIONS
STATEMENT OF CONDITION
The comparative statement of condition of the Federal
Reserve Bank of New York as of December 31, 1923, and
December 31, 1922, 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.
KESOURCES
Dec. 31, 1923

Dec. 31, 1922

$871,495,014.73
24,437,091.00

$956,784,070.26
31,313,929.70

895,932,105.73
11,845,810.23

988,097,999.96

136,174,500.00

168,235,591.11

28,360,300.73

16,053,362.30

93,151,232.70
46,755,950.00

60,863,602.89
167,252,450.00

304,441,983.43

412,405,006.30

130,803,534.55

146,433,874.24

$1,343,023,433.94

$1,546,936,880.50

CASH RESERVES:

Gold
Legal tender notes, silver, etc
Total reserves
NON-RESERVE CASH
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
$420,371,240.00

$597,071,293.50

712,857,792.81
9,562,383.00
12,405,744.27

749,005,902.75
517,656.11
11,439,182.74

734,825,920.08

760,962,741.60

98,458,006.65
29,439,300.00
59,928,967.21

100,414,872.15
28,688,450.00
59,799,523.25

$1,343,023,433.94

FEDERAL RESERVE NOTES IN CIRCULATION . . . .

$1,546,936,880.50

DEPOSITS:

Reserve deposits of member banks
Government deposits
All other deposits
Total deposits
MISCELLANEOUS LIABILITIES (mostly checks

on deferred credit)
CAPITAL
SURPLUS
TOTAL LIABILITIES




11

NINTH ANNUAL REPORT

12

INCOME AND DISBURSEMENTS
A comparative summary of the income and disbursements
of the Federal Reserve Bank of New York for the past two years
is given in the following table. A more detailed statement
appears in the appendix, page 48.
1923

1922

EARNINGS:

$8,255,645.84
1,969,837.16
1,087,250.95
100,44S.81

$3,970,209.76
1,619,512.13
5,643,385.44
108,211.44

$11,413,182.76

$11,341,318.77

$6,458,906.87
421,229.30

$6,223,404.61
553,124.78

1,489,367.49

843,196.31

Total deductions from earnings

$8,369,503.66

$7,619,725.70

Net income. .

$3,043,679.10

$3,721,593.07

$1,749,239.47
129,443.96
1,164,995.67

$1,652,138.30
206,945.48
1,862,509.29

$3,043,679.10

$3,721,593.07

From rediscounts and advances to member banks
From acceptances owned
From United States Government securities owned
Other earnings
Total earnings
DEDUCTIONS FROM EARNINGS:

For current bank operations
For cost of Federal Reserve currency
For depreciation, self-insurance, and other reserves, etc

DISTRIBUTION OP NET INCOME:

Dividends paid
Added to surplus
Paid United States Government as franchise tax. ..
Total

Total earnings in 1923 were about equal to those of 1922,
due to the fact that approximately equal amounts of earning
assets were held during the two years and discount rates
throughout both years were 4 or 4^2 per cent. The rates of
yield on bills and Government securities purchased were also
within about the same ranges. The principal difference in earnings between the two years lay in the type of paper from which
income was derived. In 1922 Government securities owned were
the largest source of revenue. In 1923 two-thirds of total earnings were yielded by bills discounted for member banks.
The current expenses of bank operations have been maintained at about the same level as last year in spite of a considerable increase in the volume of work. In particular, the amounts
of checks and other items handled for collection, the funds transferred by telegraph, and the amounts of currency and coin
handled showed increases of from 6 to 17 per cent. The exceptionally active business of early 1923 resulted in a larger volume
of checks drawn, a larger volume of currency in circulation, and
a more rapid turnover of funds in the banks of the district, all
of which led to greater activity in the operating departments



FEDERAL RESERVE BANK OF NEW YORK

13

of the Reserve Bank. The changes in volume of important
operations in the past three years are shown in Appendix N.
The handling of this increased volume of work without any
large increase in expenses was largely the result of improvement in administrative methods. The staff and general organization of the bank were built up rapidly during the war and
since that time it has been possible gradually to develop more
efficient procedure and eliminate unnecessary steps. A considerable gain in efficiency comes simply from the increasing
experience of members of the staff, all of whom were new a
few years ago.
Somewhat larger deductions from net earnings have been
made this year for depreciation and other reserves, because of
the necessity for setting aside a reserve against a portion of
the expenditure in connection with the new bank building. The
reserve set aside on this account in 1923 is the bulk of the total
eventually so to be set aside.

Disposition of Income
Net income for 1923, available for dividends, addition to
surplus, and franchise tax, amounted to $3,044,000. About 57
per cent, of this sum, or $1,749,000, was paid as dividends to
member banks at the rate of 6 per cent, on paid in capital stock,
as provided in the Federal Reserve Act. In accordance with
further provisions of the Act, 10 per cent, of the balance was
transferred to surplus and the remainder, amounting to
$1,165,000, paid to the Government as a franchise tax. Amounts
so paid in by the Reserve,Banks 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.
The disposition of the gross earnings of the Federal Reserve
Bank of New York in each of its nine complete years of operation is shown in the following diagram.
Total gross earnings, indicated by the heights of the columns,
have responded directly to the extent to which the Reserve
Bank has been used as a seasonal or emergency institution. The
heaviest earnings reflected the large borrowings of the war and
post-war periods. The earnings of the past two years, derived
from earning assets fluctuating between $200,000,000 and
$300,000,000, represent a more nearly normal state of affairs.
The current expenses of the bank increased steadily from
1915 to 1921 as the activities of the bank were developed
with great rapidity. Since 1921 there has been a reduction in
expenses of about 16 per cent. It is worth noting that the
volume of work which the bank is called upon to perform bears
little relation to the earnings. Earnings are related to only one
of the bank's functions, its lending operations, which engage the
time of only about 5 per cent, of the bank's staff.



14

NINTH ANNUAL REPORT

|

| U.S.TREASURY

H i SURPLUS
[ H I DIVI0END5
• EXPENSES

1919

1920

1921

1922

1923

Disposition of Gross Earnings of the Federal Reserve Bank of New York
(In Millions of Dollars)

The amounts paid in dividends have varied but little from
year to year since 1917, when back dividends were paid for 1916.
Amounts carried to surplus were heavy in the early years in
accordance with the provision of the amended Reserve Act that
earnings above dividends should be paid into a surplus fund
until it amounted to 100 per cent, of the subscribed capital stock.
Additions to surplus in 1923 were the smallest in any year since
transfers to surplus were begun in 1917.
The franchise tax paid to the Government, representing that
portion of the earnings not absorbed by operating expenses,
dividends, and additions to surplus, was the smallest since 1917.
Expenses of Operation
The expenses of carrying on the work of the bank, divided
as nearly as possible according to functions, are given in the
following tabular exhibit. Such general expenses as building
maintenance, protection, personnel service, stenographic, messenger, and telephone service, files, insurance, legal service,
etc., amounting in the aggregate to $1,725,829, have been apportioned among the various functions.



FEDERAL RESERVE BANK OF NEW YORK

15

1. MAINTAINING THE ACCOUNTS OF THE BANK.
This work included making about 9,026,000 entries a year
in the accounts maintained with member and other
banks, and the current determination of reserve balances,
which are required by law

2.

$211,363

S U P P L Y I N G C U R R E N C Y AND C O I N .
PAYING OUT, RECEIVING, AND REDEEMING CURRENCY, in-

volving the count of about 775,000,000 individual notes
during the year
PAYING OUT AND RECEIVING COIN.

$896,934

This service was for-

merly performed largely by the Subtreasury, and is now
entirely in the hands of the' Federal Reserve Bank.
Receipts and issues amounted to $228,798,000 for the
year

172,025

CURRENCY AND COIN SHIPMENTS to and from out-of-town

banks. There were 234,621 such shipments in and out
during the year

429,038

PRINTING NEW FEDERAL RESERVE CURRENCY to replace

worn notes in circulation and to maintain supplies
unissued and on hand, including cost of transportation.
Currency is printed by the Government but the cost is
borne by the bank

421,229

SUPPLYING CURRENCY AND COIN

$1,919,226

3. M A K I N G L O A N S AND I N V E S T M E N T S .
MAKING DISCOUNTS AND ADVANCES TO MEMBER BANKS.

The number of items handled during the year was
72,177, aggregating $17,952,000,000

$275,110

PURCHASING ACCEPTANCES AND GOVERNMENT OBLIGATIONS

for the account of this bank and other Federal Reserve
Banks. The items purchased during the year aggregated $3,528,000,000

142,907

1418,017

MAKING LOANS AND INVESTMENTS
4. COLLECTING CHECKS, DRAFTS, NOTES, AND COUPONS.
COLLECTION OF CASH ITEMS, mostly checks.

The average

number collected was 425,151 a day, or 128,400,000 for
the year, aggregating $65,518,000,000
$1,705,245
COLLECTION OF NON-CASH ITEMS, including drafts, notes,

and coupons. The number of items handled during the
year was about 2,177,000, aggregating $1,921,000,000...
COLLECTING

5. S U P P L E M E N T A R Y

501,816

C H E C K S , ETC

$2,207,061

SERVICES.

CUSTODY OF SECURITIES. This service involved holding in
safekeeping on the average about $700,000,000 of securities for the United States Government, $50,000,000 for
the War Finance Corporation and $260,000,000 from
other sources



$186,129

16

NINTH ANNUAL REPORT
PURCHASE AND SALE OF BANKERS ACCEPTANCES and other

securities for member banks and foreign banks amounting
for the year to $237,712,000, and receiving and delivering securities for the account of member banks,
amounting for the year to about $500,000,000. In addition the bank has acted for the Treasury Department in
the purchase and sale of Government securities
TELEGRAPHIC TRANSFER OF FUNDS.

This service is per-

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 939
transfers of funds to all parts of the country each day,
amounting to about $92,820,000 and aggregating for the
year $28,031,500,000
SUPPLEMENTARY

145,633

115,440

SERVICES

$447,207

6. SERVICES I N CONNECTION W I T H G O V E R N M E N T L O A N S .

This work included during 1923 the receipt or delivery of
1,345,000 individual Government bonds, notes, and certificates, amounting to $2,622,000,000, which jvere exchanged or converted or handled in connection with registration; and the payment of 17,683,617 individual coupons
on Government bonds, notes, and certificates. It also
involved the sale and issue of 124,846 pieces amounting to
$851,583,000, and the redemption of 788,758 pieces
amounting to $807,929,000 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.)

$648,310

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

$203,640

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
352,575
MAINTAINING THE GENERAL AUDIT, including the daily

checking of transactions and records, together with periodical verifications of securities, cash and cash i t e m s . . . .
DIRECTORS' FEES AND TRAVELING EXPENSES

260,226
21,664

THIS BANK'S SHARE OF THE EXPENSES OF THE FEDERAL

RESERVE BOARD
GENERAL OR SUPERVISORY EXPENSES

TOTAL



190,847

$1,028,952
$6,880,136

FEDERAL RESERVE BANK OF NEW YORK

17

EARNING ASSETS
The earning assets of the bank during 1923 were on the
average slightly under the level of 1922. The total fluctuated
mainly between $200,000,000 and $300,000,000 and averaged
about $260,000,000. The: largest amounts of earning assets were
held early in the year coincidently with the period of most
active business. The smallest amount on a weekly reporting
date was on September 19 in a period of temporary ease in the
money markets due to Government operations in the redemption and issue of certificates and the collection of tax checks.
Earning assets during the past two years have been comparatively free from the extraordinary influences of the war
period and as a consequence the influence of seasonal and other
temporary tendencies has been more in evidence. The character of these tendencies is shown in the following diagram of
total earning assets on the reporting date of each week.

100

JAN.

TIB

MAR

APR MAY

JUN. JUL. AUG. SEP.

1922.

OCT.

NOT DEC '

JAN.

FEB.

MAR

APR.

MAY

JUN. JUL.

AUS. SEP.

OCT.

NOV

DEC.

192.3

Total Earning Assets of the Federal Reserve Bank of New York each week

At the first of every month large dividend and interest payments are made all over the country by financial and business
corporations having their headquarters in New York City. As
these checks return to New York for collection, funds are transferred out of this district in settlement, and member banks rediscount at the Eeserve Bank to replenish their reserves. As a
result the earning assets of this bank show a marked temporary
increase at the first of almost every month. Later in the month
funds tend to flow back to New York for reinvestment, and
advances by this bank are correspondingly reduced. This reduction in earning assets is particularly marked in those months



18

NINTH ANNUAL REPORT

when there are redemptions and new issues of Treasury certificates. The amount of certificates redeemed is usually larger
than the amount of new issues sold in this district because certificates sold originally in other parts of the country tend to flow
towards New York, where the open market for them centers.
These periodic tendencies towards tightness or ease of
money are reflected not only in the fluctuations of earning assets
of this bank but are also reflected in the rates for call loans,
which under present conditions have been characteristically
firm early in the month and easier after the middle of the month.

Discounts and Advances
Loans to member banks in the form of discounts and
advances during 1923 were generally at a somewhat higher
level than in 1922, accompanying more active business conditions and smaller holdings by the bank of United States securities. The largest amount of discounts and advances held on a
reporting date was $294,000,000 on February 14, at about the
time when industry and the financial markets were most active.
An average level, between $150,000,000 and $200,000,000, continued throughout most of the year. The lowest amount on a
reporting date was $124,000,000 on December 5. The borrowings
by banks in the Second District outside of New York City
showed a moderate but steady increase throughout the year,
whereas borrowings by New York City banks were highest
early in the year, and were much reduced in the summer, and
at the end of the year. The diagram below shows the fluctua-

100

JAN.

FEB. MAR. APR.

MAY

JUN.

Ml.

AUG. SEP. OCT. NOV.

DEC.1

JAN.

TEB. MAR. APR.

MAY

JUN. JUL. AUG. SEP. OCT. NOV.

DEC

192.2.
192.3
Discounted Bills (Rediscounts and Advances), and Purchased Bills and U. S.
Securities held by the Federal Reserve Bank of New York each week
(Pittman Act and Special Certificates not included)



FEDERAL RESERVE BANK OF NEW YORK

19

tions in discounts and advances for member banks and compares them with the changes in the holdings of United States
securities and bills purchased in the open market. The diagram
indicates that the regular monthly fluctuations, which were
commented upon in the preceding paragraph, are largely due to
direct borrowings by member banks, whereas the changes in
open market holdings reflect more closely conditions in the
particular markets.
The aggregate amount of discounts and advances made during the year was increased from $9,000,000,000 in 1922 to
$18,000,000,000 in 1923, and the number of banks to which
loans were made was 590 compared with 544 in 1922. As in the
previous year the majority of loans was in the form of advances
against the notes of members secured by Government obligations rather than the rediscount of customers' paper. The large
aggregate amount of discounts and advances is due to the fact
that advances to the larger institutions are usually only for a
few days, in many cases for a single day; and frequent renewals
of large day-to-day advances make immense aggregates. The
items discounted, the names checked for eligibility and acceptability, and the number of financial statements analyzed by the
departments of the bank charged with those responsibilities,
were increased over 1922. The following table compares certain
of the more important figures relating to discounts and advances
for each of the past three years.

1923
Applications received....
Amount discounted or advanced upon
Number of pieces of paper
discounted or advanced
upon
Largest note advanced
upon
Smallest piece of paper rediscounted
Average size of notes advanced upon
Average size of paper rediscounted

1922

17,418
$17,951,843,277.03

1921

14,178

21,461

$9,206,363,786.02 $30,768,989,922.52

72,177

60,715

149,868

$108,075,000.00

$75,000,000.00

$78,100,000.00

$25.59

$13.22

$16.72

$1,242,511.00

$761,102.00

$1,116,565.00

$7,542.26

$7,397.41

$29,797.96

Discount Rates
At the beginning of the year the rate on all discounts and
advances was 4 per cent., a rate which had been in effect since
June 22, 1922. This rate was maintained until February 23,
when it was raised to 4 ^ per cent., as a reflection of increases



20

NINTH ANNUAL REPORT

in rates in the open market and in order to bring this bank's
discount rate in conformity with rates throughout the Federal
Reserve System. A lower rate of discount at the New York,
Boston, and San Francisco banks than at the other Reserve
Banks was tending to throw an undue relative burden of discounting on those banks. The 4% per cent, rate was maintained throughout the balance of the year.
The relationship of the discount rates of the bank to the
market rates on commercial paper, bankers acceptances, certificates of indebtedness, and Liberty bonds is shown in the
following diagram for the past two years.
RATE

RATE

6

6

H

t

MARK E T - .

B/NK
B/ kNK

\u

MARKET

cc>MMI :RCI

BANKERS
ACCEPTANCES
I
I
1

PA PER
•

19R2.

1923

192.2.

192.3

RATE

RATE

6
BA1IK
A

BANK

i

1/

/ >\

' 1
'

'

A

MA RKET

MAR! ET

O

n

LI BER FY
BOND S

CE RTIf •ICA FES of
IN DEBtEDl MES 50

0

192.2.

1

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 Acceptances, Certificates Maturing in 4 to 6 Months, and
an Average of the Yields of 3 Issues of Liberty Bonds

Bankers Acceptances
This bank's holdings of bankers acceptances were in moderate volume during the first half of 1923, but in the latter half
increased to the largest amount since early in 1921. This
increase was due first to a large volume of bills arising from
heavy exports at higher prices than a year ago, particularly in
the case of cotton, and second to conditions in the money market



21

FEDERAL RESERVE BANK OF NEW YORK

which made it difficult for dealers to carry their portfolios
without recourse to the Reserve Bank. The changes in bill holdings during the past two years, are shown in the accompanying
diagram.

JAN Tib MAR. APR. MAY JUN. JUL. AUG 5EP. OCT. NOV. DEC.' JAN FEB. MAR APR MAY JUN JUL. AUG SEP. OCT. NOV. DEC

1922..
1923
Purchased Bills held by the Federal Reserve Bank of New York each week

The following table shows the amounts of purchased bills
held at the close of several years by the Federal Reserve
Bank of New York and by all Federal Reserve Banks, compared

End of Year

1916
1917
1918
1919
1920
1921
1922
1923

Owned by
Federal
Reserve
Bank of
New York

Owned by
All Federal
Reserve
Banks

Estimated
Amount
Outstanding

Percentage
Owned by
All Federal
Reserve Banks
of Estimated
Amount
Outstanding

$41,457,000
148,125,000
69,323,000
191,312,000
109,902,000
47,313,000
45,789,000
90,052,000

$127,497,000
275,366,000
303,673,000
585,212,000
255,702,000
114,240,000
246,293,000
336,415,000

$250,000,000
450,000,000
750,000,000
1,000,000,000
1,000,000,000
600,000,000
600,000,000
650,000,000

51.0
61.2
40.5
58.5
25.6
19.0
41.0
51.8

with the estimated amount of bills outstanding. The total
amount outstanding is an approximate figure estimated from
reports made to the Federal Reserve Banks.
This bank's total purchases of bankers and trade acceptances in the open market during 1923 amounted in the aggregate
to $1,950,000,000 as compared with $1,400,000,000 in 1922. There
was also a large increase in the number of pieces handled. The
purchases during the year for the account of this bank, for
other Federal Reserve Banks, and for the account of member
banks and foreign banks are shown in the following table.



22

NINTH ANNUAL REPORT
1923
Pieces

For account of this bank
75.701
For account of other Federal
Reserve Banks
45,029
For account of members of
this Federal Reserve Bank. . 2,267
For account of members of
other Federal Reserve Banks.
168
For account of foreign banks. . 14,714
Total

:

137,879

1922
Pieces

Amount

$1,178,000,000

56,474

$871,000,000

579,000,000
13,000,000

23,108

316,000,000

2,342

17,000,000

1,000,000
179,000,000

632
17,864

6,000,000
207,000,000

$1,950,000,000

100,420

$1,417,000,000

Amount

The minimum rates at which indorsed bills were purchased
by this bank for its own account and for the account of other
Federal Reserve Banks are shown in the accompanying diagram
in comparison with the current open market rates on acceptances. Figures are also shown in the appendix.
RATE

6\

•

_.BUYI ^G RA1
F.R.B.

S3

1

4-

ARKET
RATE

• •••MM1

Z

0

1921

1923

Buying Rate of the Federal Reserve Bank of New York compared with the
Market Offering Rate for 90 day Bankers Acceptances

As the preceding table shows, this bank purchased less bills
for foreign banks of issue than in 1922; but the investment in
the discount market of foreign money through other agencies
increased. The distribution of bills has continued on a fairly
wide basis through the efforts of distributing houses. Owing
to local money conditions, purchases were largely by the interior
and for foreign account, rather than by local banks of deposit.



FEDERAL RESERVE BANK OF NEW YORK

23

As an indication of the wide distribution of bills, the following table shows certain of the purchasers in England, France,
Switzerland, Holland, Sweden, Austria, Czechoslovakia,
Portugal, Egypt, Cuba, Porto Rico, Philippines, and Japan, and
in 45 out of the 48 States of this country, on the books of one
New York dealer. While the major part of the sale of bills is
to commercial and savings banks and large corporations, the list
indicates that the distribution is by no means confined to such
purchasers.
A cement company
A hosiery mill
A furniture manufacturer
A shoe manufacturer
A cough drop manufacturer
A manufacturer of dental supplies
A railway supply manufacturer
A barrel manufacturer
An ice cream manufacturer
A fountain pen manufacturer
A jewelry manufacturer
A cotton mill
A soap manufacturer
A steel manufacturer
A zinc company
A machine tool manufacturer
An automobile manufacturer
A pottery manufacturer
A thread company
A street railway
A gaa company
A telephone company

A copper mine
An oil company
A land company
A warehouse
A university
A sanatorium
A hardware company
A paper exporter
A coffee importer
A wholesale lumber dealer
A cotton dealer
A department store
A taxicab company
An advertising agency
A life insurance company
A railroad company
A steamship company
A forwarding agent
A home for aged people
Estates
Individuals

There has been no substantial change during the year in the
average maturity of purchased bills, as is indicated by the
following table, which shows the average maturities of holdings
at three month intervals. Few six months bills drawn in export
and import transactions and practically no six months bills
secured by staple agricultural products have been offered to the
bank.
Date

1923

1922

January
1
April
1
July
1
October
1
December 31

Government Obligations Owned
Other earning assets of the bank consisted of the following
groups of Government obligations.
1. Special certificates of indebtedness running for a few
days. The reduction in the number of Government issues in
1923, and the prompt collection of quarterly income tax checks,



24

NINTH ANNUAL REPORT

resulted in reducing the number of days on which temporary
advances were made to the Government on 2y2 per cent, special
certificates of indebtedness to 38 days, as compared with 45 days
in 1922 and 60 days in 1921. The largest advance during the
current year was that of December 15 amounting to $106,000,000
as compared with $135,000,000 in 1922.
2. Treasury notes and certificates underrates contracts. As
an aid to the open market for Government securities, the bank
continued its practice of purchasing from discount houses
and dealers moderate amounts of Victory notes and Treasury notes and certificates, under the provision that they
be repurchased within 15 days. The maximum amount
held at any one time during the year was $51,000,000 on January
2,1923, and the average amount during the year was $12,000,000.
In conformity with a continued rise in money rates and increased investment yields on Government securities, the rate
on such purchases was increased from 4 per cent, to 4 ^ per
cent, on April 10,1923.
3. Holdings of Government obligations for account of the
bank. The policy adopted by the bank in the latter part of 1922
of allowing its investment holdings of Government securities
to mature or gradually selling them in the market as credit conditions warranted, resulted in disposing by April 30, 1923, of
the entire amount held on January 1, 1923, with the exception
of a little more than $1,000,000 held in the self-insurance reserve

I
JAN

f£B

MAR. APR

MAY..JWN.

ML.

AUG. SEP-

-J, I \
OCT 1iOV

DfC

I
JAN

FEB. MAR. APR. MAY

JWV JUL. AUG. SEP.

OCT. NOV

PEC.

192.2.
19*3
United States Government Securities held by the Federal Reserve Bank of
New York (Pittman Act and Special Certificates not included)



FEDERAL RESERVE BANK OF NEW YORK

25

fund. The amounts held on dates at quarterly intervals were
as follows:

Dec.
Apr.
July
Oct.
Dec.

31,
4,
4,
3,
31,

1922
1923
1923
1923
1923

Maturing in
One Year
or Less

Maturing in
One to
Five Years

*Maturing in
Over
Five Years

$65,745,000
0
0
0
6,301,500

Date

$32,520,800
10,000,000
0
0
2,757,000

$1,148,750
1,148,750
1,148,750
1,148,750
1,202,450

•Represents investment of self-insurance reserve fund.

FEDERAL RESERVE CURRENCY
Advancing commodity prices and wages and more active
trade late in 1922 and early in 1923 resulted in an increased
demand for hand to hand currency for the payment of wages
and for use in retail purchases. Total money in circulation as
reported by the Treasury Department increased $547,000,000, or
12Y2 per cent, between July 1, 1922 and December 1, 1923. This
increase took the form principally of an increase in gold certificates, as certain of the Federal Reserve Banks continued their
policy of again placing gold certificates in circulation as hand
to hand currency. In the New York district demands for currency of the larger denominations were mainly supplied by the
issuance of gold certificates, and there was a decline of
$207,000,000, or about 30 per cent, in the circulation of the notes
of the Federal Eeserve Bank of New York. The following table
shows the changes in the principal types of currency in circulation in the United States between July 1, 1922, and December
1,1923.
(In Millions of Dollars)
Type of Currency

July 1, 1922

December 1, 1923

Change

Gold certificates
Notes of N. Y. Reserve Bank.
Notes of other Reserve Banks.
Other Currency and Coin

173
641
1,497
2.065

533
434
1,803
2,153

+ 360
—207
+ 306
+ 88

4,376

4,923

+ 547

Total

The principal increase in other forms of currency and coin,
paid out by the New York and other Reserve Banks, was in
silver certificates issued against silver purchased in 1920-22,
under the provisions of the Pittman Act. In December 1923,
issues of silver certificates took the form of currency of a new
design in accordance with the Treasury's plan to make the



26

NINTH ANNUAL REPORT

currency more uniform in appearance and also to take further
precautions against counterfeiting and raising.
The fluctuations during the year in the notes of this bank,
in the notes of all Reserve Banks, and in the total money in
circulation, are shown in the accompanying diagram. The seasonal fluctuations followed the course which has become customary since Federal Reserve Bank operations have introduced
greater elasticity in the volume of currency.

FEDERAL RESERVE NOTES
ALL BANKS

FEDERAL RESERVE NOTES
NEW YORK BANK

1915
1916
1917
1916
1919
1920
1921
\9Z.Z 1923
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

The increased demand during the year for currency of various kinds was reflected in the operations of this bank by an
increase of 11 per cent, in the average number of pieces of
money handled each day by the cash department of the bank.
The following table gives a few representative figures indicating the volume of operations of this department.
(Average daily transactions)
1923
Number of bills counted, including verification
count..
Tons of coin handled in paying, receiving, and
counting*
Number of currency and coin shipments to and
from out-of-town banks
* Exclusive of Buffalo Branch operations.



1922

1921

2,566,225

2,304,636

2,274,834

41

36

28

778

712

579

FEDEEAL RESERVE BANK OF NEW YORK

27

RESERVES AND RESERVE POSITION
Additions during the year to the gold reserves of the bank
through imports were offset through loss of gold certificates
placed in circulation. As a consequence, the reserves of the
bank were maintained at a fairly constant level throughout most
of the year, and were reduced slightly in the latter part of the
year.
In the computations of the reserve percentage of the bank a
slight decrease in reserves was offset by a decrease in note
liabilities. The reserve percentage moved within a comparatively narrow range and showed little net change from the
position a year ago. The movement of the ratio since 1917 is
shown in the following chart, in comparison with the ratio for
the Reserve System as a whole.
PER
CENT.

100

FEDERA L RESERVE
KofN.Y.
^

f
{

80

I
V
40

1917

1918

1919

1920

1921

,—c

'
ALL
1
FEDERAL RESEBVE
BANKS

1922

1923

Reserve Percentages of Federal Reserve Bank of New York and all Federal
Reserve Banks each month since 1917

COLLECTIONS AND CLEARINGS
As a result of active business, a somewhat higher price level,
and an increase in the number of banks using the facilities, the
number of checks, notes, drafts, coupons, and bonds collected through this bank was larger than in any previous year.
There was a similar increase in the amount of funds transferred
by telegraph.



NINTH ANNUAL REPORT

28
MILLIONS
OF DOLLARS

250
DAILY CHECK
, COLLECTIONS

200

f

150

100

50

1919

1921

1922.

192.3

Daily Average Amount of Checks Handled for Collection by the Federal
Reserve Bank of New York (Excluding Buffalo Branch)

Check Collections
At the close of 1923, out of 839 member banks in this district,
746 were using this bank's check collection system, as compared
with 692 banks at the close of 1922. The following table shows
the increase in checks handled in recent years.

Year

1919
1920
1921
1922
1923

Daily Average

Total for the Year

Banks Using
the
Collection
Facility

Items

Amount

Items

375
508
628
692
746

244,000
286,000
346,000
393,000
425,000

$185,881,000
181,991,000
119,541,000
206,226,000
216,947,000

74,066,000
87,036,000
104,519,000
118,589,000
128,396,000

Amount
$56,322,041,000
55,325,111,000
36,101,511,000
62,280,122,000
65,518,030,000

At the end of the year there were 697 employees engaged
in this work, as against 663 at the close of 1922.
Various arrangements made during previous years with
groups of banks or with individual banks for making the proceeds of checks collected more quickly available to member
banks, were carried forward in 1923, with a number of additions
to the banks cooperating in such arrangements.



FEDERAL RESERVE BANK OF NEW YORK

29

The number of banks in this district which send checks
drawn against banks in other districts direct to other Federal
Reserve Banks for collection, has increased during the year.
There was also an increase in the number of banks in other
districts which send checks direct to the Federal Eeserve Bank
of New York.
Arrangements were first made in 1921 by which groups of
member banks in a number of counties of the district forward
checks drawn on other member banks in the same county direct
to such banks, and simultaneously advise the Federal Reserve
Bank of the amounts in order that the aggregate of the transactions may be cleared by appropriate entries on its books.
This plan was extended during the year to two more counties,
and the banks in 19 counties are now cooperating in such
arrangements. This plan results in the saving of at least two
days in the time required for the collection of such checks and
avoids the necessity for having the checks mailed to and from
the Reserve Bank or a correspondent. The following table
shows the county groups and the number of banks in each group
organized in this manner, together with the volume of settlements so effected in the years 1922 and 1923.
1922

1923
County

Group

1
2
3
4
5
6
7
8
9
10
11
12
13
14

Delaware, N. Y
Monmouth, N. J
Broome, Chemung, Tioga
and Tompkins, N. Y.. . .
Middlesex, N. J
Westchester, N. Y
Otsego, N. Y
Herkimer, N. Y
Steuben, N. Y
Nassau, N. Y
Bergen, N. J
Sullivan, N. Y
Saratoga, Warren, and
Washington, N. Y
Essex, N. J
Orange, N. J

Total

Number of Volume of Number of Volume of
Settlements
Banks
Settlements
Banks
15
25

$10,642,000
28,897,000

16
22

$10,525,000
25,676,000

19
20
19
13
15
8
26
28
9

23,722,000
27,183,000
49,110,000
6,437,000
11,015,000
1,815,000
14,453,000
30,926,000
9,036,000

19
20
23
13
14
8
24
29
9

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

17
26
22

6,837,000
104,908,000
4,041,000

17

4,249,000

262

$329,022,000

214

$177,318,000

An arrangement was made with the Orange, New Jersey,
clearing house banks by which their balances should be settled
daily on the books of this bank, in much the same fashion as has
been done in the case of the Newark, New Jersey, Clearing
House Association, and the clearing house banks of Syracuse,
Elmira, and Binghamton. By this means a day is saved in
making final settlements of clearing house balances, which were
previously settled by New York check.



30

NINTH ANNUAL REPORT

The Northern New Jersey Clearing House Association, in
which this bank participates as a member, was extended in scope
to include as associate members 5 more banks. There are now
participating in the arrangement 21 member banks and 9 associate banks. Daily clearings of the association averaged about
$7,227,000 in 1923, as compared with $6,721,000 in 1922. Of the
$2,182,465,000 total clearings for 1923 this bank presented items
aggregating $1,706,308,000.
In the Boroughs of Manhattan, Brooklyn, and The Bronx 24
additional banks and branches of banks participated in the oneway collection facilities which have been maintained for several
years. The number of banks and branches participating in
these arrangements is now 110, and during the year 1923 this
bank presented checks drawn against these banks to the amount
of $7,250,955,000.
This bank continued to maintain a postal sub-station on its
premises through which it is possible to send pouches directly
to trains and to route them to sub-stations in other cities in
order to secure the most rapid service possible. Progress was
also made in other directions during the year in securing
greater speed in the mechanical operations involved in check
collections.
Note and Coupon Collections
There was a further increase during 1923 in the non-cash
items handled for collection, consisting of notes and drafts and
maturing bonds and coupons. The collections each year since
1919 are shown in the following table, exclusive of Government
bonds and coupons which are reported elsewhere.
Notes and Drafts*
Year

1919
1920
1921
1922
1923

Payable in
N. Y. City

Payable outside N. Y. City

Number
99,978
227,262
254,911
262,318
305,061

Number
146,037
336,552
559,418
702,510
788,537

Bonds and
Coupons*
Amount
$39,748,000
60,115,000
104,844,000
129,903,000
168,486,000

*Ex elusive of Buffalo Branch

As the table indicates, the increase recently in notes and
drafts collected has been largely in items drawn on places outside New York City.
Transactions at the Buffalo Branch are referred to in the
section dealing with the operations of the branch.
As heretofore, the collection of notes and 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.



31

FEDERAL RESERVE BANK OF NEW YORK

Telegraphic Transfer Service
This bank continued as in previous years to transfer funds
over the lines of the Federal Reserve System, to and from all
parts of the country for the Treasury and for member banks.
The number of transfers in 1923 was 20 per cent, larger than
in 1922 and the dollar amount 12 per cent, larger. The following table shows the telegraphic transfers of this bank to and
from other Reserve Banks and within this district from 1916
to 1923.
Year

Number

1916 (nine months) 2,971
1917
10,302
1918
3J,099
1919
84,110

Amount
$484,500,000
6,768,400,000
19,384,400,000
18,364,500,000

Year
1920
1921
1922
1923

Number

Amount

154,176 $17,409,900,000
214,480 18,160,300,000
236,368 25,126,100,000
283,712 28,031,500,000

Gold Settlement Fund
The amount of transactions carried on by this bank through
the gold settlement fund, operated by the Federal Reserve
Board in Washington, was larger than in any previous year,
although only slightly larger than in 1920 when the amount
involved in transactions was affected by the high level of commodity prices. Daily transactions for the account of this bank
in 1923 averaged about $178,000,000 compared with $151,000,000
in 1922. Transactions settled in this way include the balances
between Federal Reserve districts arising from check collections, note collections, telegraphic transfers of funds for member banks and their customers, for the United States Treasury,
and for the several Federal Reserve Banks. They include in
fact a large percentage of all the out-of-town financial transactions of banks, business houses, and individuals in this district. The following table shows for this district the aggregate
transactions through the fund in each year from 1915 to 1923.
1915
1916
1917
1918
1919

$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
53,609,847,000

RELATIONS WITH MEMBER BANKS
During 1923 the policy of previous years was maintained of
keeping in contact with member banks through visits of representatives, and accepting invitations to be present and at times
to speak at various State, group, and local bankers' meetings.
The effect of adherence to this policy was to maintain personal
relations between this bank and its members. Thus the officers
of this bank obtain a clearer understanding of banking and
business conditions throughout the district, and the officers of



32

NINTH ANNUAL REPORT

member banks obtain a better understanding of the operations
and policies of the Federal Reserve Bank.
I n June representatives of this bank assisted the Federal
Reserve Bank of Atlanta in preparing an exhibit of the activities of the Federal Reserve System for the annual convention of
the National Association of Credit Men, held in Atlanta. I n
September assistance was given to the Federal Reserve Bank
of Philadelphia in preparing a somewhat similar exhibit for the
convention of the American Bankers Association. Copies of
the exhibit material in pamphlet form, under the caption "—of
Service to Banks and Business," were later distributed to member banks and to others on request.
The bank continued to issue to member banks, their customers, and others desiring it, a Monthly Review of Credit
and Business Conditions. A number of articles explanatory of
operations of the Federal Reserve System were published in
this Review. At the close of the year the Review had a circulation of about 40,000 copies.
The right of banks to exercise fiduciary powers in accordance with the terms of the Federal Reserve Act, was extended
during the year to 34 National banks in the district. A total
of 233 of the National banks of the district have now been
granted the right to exercise these powers.
W o r k of B a n k E x a m i n a t i o n s D e p a r t m e n t
In the examination of member banks this bank as in previous
years worked closely with the State Banking Departments in
New York, New Jersey, and Connecticut, and with the National
bank examiners having charge of work in this district.
During the year this bank's examiners made credit investigations or participated in examinations of 85 member banks, in
conjunction with visits to these banks by the examiners of the
State Banking Departments. They also made 39 special visits
to member and non-member banks in the district examining
banks contemplating membership, assisting in the opening of
new banks, and rendering other special services.

Bank Changes in 1923
In the year ended December 31, 1923, there was an increase
of 31 banks in the membership of the System in this district,
of which 24 were National banks, and 7, State banks and trust
companies. There was also an increase of 17 in the number of
non-member banks in the district. These increases are larger
than those which took place in the previous year, a reflection
perhaps of greater business activity. The following table shows
the number of banks in this Federal Reserve district on December 31, 1923, exclusive of savings banks, classified according to
their charters, whether National or State, and according to their
membership in the Federal Reserve System.



FEDERAL RESERVE BANK OF NEW YORK
December 31, 1923

33

December 31, L922

Type of Bank
Non- Per Cent.
Non- Per Cent.
Members Members Members Members Members Members
National Banks
State Banks
Trust Companies. . .
Total

695
55
89

226
134

100
20
40

671
49
88

218
125

100
18
41

839

360

70

808

343

70

The resources of member banks constitute about 88 per cent,
of the resources of the banks in the district (excluding savings
banks).
The changes which took place during the year in the banks
of the district were as follows:
Total number of banks in the district, January 1, 1923
New National Banks established during the year
New State banks established during the year

1,151
.. 29
34

National banks absorbed by State institutions*
National banks absorbed by other National banks*
State institutions absorbed by National banks*
State institutions absorbed by other State institutions*
National banks liquidated

..
..
..
..
..

1
2
1
9
2

National banks converted into State institutions
State institutions converted into National banks

..

4
4

Total number of banks in the district, December 31, 1923. .

63
1,214

15

1,199

Consolidated, merged, or assets purchased and liabilities assumed.

Membership of State Institutions
State banks and trust companies in this district which are
members of the Federal Reserve System numbered 144 on
December 31. During the year nine State institutions were
admitted to membership and none withdrew from membership.
NEW MEMBERS
Month

Location

Fort Lee, N. J
Bloomfield, N. J
Long Branch, N. J
Williamsville, N. Y.. . .
May
New York City, N. Y..
July
New York City, N. Y..
August.... Newark, N. J
November. Carteret, N. J
December. Pearl River, N. Y
January...
March....
April

*New Institution.



Bank or Trust Company

Resources
Dec. 31,1923

Fort Lee Trust Company*
Watsessing Bank
Long Branch Banking Company
Amherst Bank*
AmalgamatedBankof New York *
Federation Bank of New York*
Mutual Bank of Roseville
Carteret Trust Company*
State Bank of Pearl River*....

$395,451
2,150,192
2,308,171
558,631
2,580,265
3,593,052
2,621,280
527,484
104,362

34

NINTH ANNUAL REPORT

_ Approximately one-third of the eligible State institutions in
this district are now members of the Federal Eeserve System,
and their resources amount to about 80 per cent, of the total
resources of State institutions in the district eligible for
membership.

CUSTODY OF SECURITIES
This bank continued during 1923 to serve the Government,
various governmental agencies, other Federal Reserve Banks,
member banks, and foreign correspondents by purchasing and
selling securities for them, largely United States Government
securities, and by holding securities in safekeeping. There was
a small increase in the number of member banks taking advantage of these facilities.

RELATIONS WITH FOREIGN BANKS
With the continuation of unsettled conditions abroad the
foreign business of this bank as in previous years was confined
to the performance of services here for foreign banks of issue
such as the investment of funds in this market.
The relationships established during the past few years with
foreign banks of issue were maintained and in addition accounts were opened here by the Bankovni urad Ministerstva
Financi of Prague, the Bank of the Republic of Colombia, and
the Sveriges Riksbank. The following are the banks of issue
with which the Federal Reserve Bank of New York has relations, acting in the case of most of them for itself and other
Federal Reserve Banks.
Bank of England
Banque Nationale Suisse
Bank of France
De Javasche Bank
Bank of Italy
De Nederlandsche Bank
Bank of Japan
National Bank of Belgium
Bank of the Republic (Colombia) National Bank of Nicaragua
Bankovni urad Ministerstva Fin- Reichsbank
anci (Czechoslovakia)
Sveriges Riksbank
One of the officers of this bank, Howard M. Jefferson, was
granted a seven months leave of absence by the bank to become
a member of an American Mission invited by the Government
of the Republic of Colombia to study banking and government
finance in that country and to make recommendations. The
visit of the commission resulted in the establishment of the
Bank of the Republic, a central bank of rediscount and issue.




FEDERAL RESERVE BANK OF NEW YORK

35

ORGANIZATION OF THE BANK
Board of Directors
The board of directors of the bank met regularly on Wednesday of each week as usual. The executive committee held meetings on Mondays and Thursdays, and the building committee
once a week, usually on Wednesday. Meetings of other committees of the board were held as occasion required.
Richard H. Williams, a director of the bank since June 1,
1920, died on April 28, 1923.
At their meeting on May 9 the directors passed the following minute:
"The Board of Directors of the Federal Reserve Bank
of New York records with deep regret the death, on April
the twenty-eighth, of Richard H. Williams, a director of the
bank since June 1920.
"Mr. Williams was the senior member of the firm of
Williams & Peters, wholesale coal merchants, the outgrowth
of a firm which he established nearly fifty years ago. He
was one of the three directors of this bank chosen to represent commerce, industry, and agriculture. He brought to
this service a long experience in dealing with large affairs,
a wide acquaintance with business and business men, and a
well-matured and balanced judgment. His upright character
and his personality of compelling charm brought him the
high respect and affection of the members of this board and
of the officers of the bank.
"His death deprives the bank of a wise counsellor and
his friends of an esteemed associate."
In October and November an election was held for two
directors to succeed Mr. Treman in Class A, and Mr. Williams
in Class B, both elected by Group 2 banks, that is banks having
a capital and surplus not exceeding $1,999,000 and not below
$201,000. On December 4, 1923, the unanimous election was
announced of Robert H. Treman, President, Tompkins County
National Bank, Ithaca, N. Y., as Class A director, to succeed
himself, and Theodore F. Whitmarsh, President, Francis H.
Leggett & Company, New York, as Class B director, to succeed
Mr. Williams, each to serve for a term of three years from
January 1, 1924. Of the 255 Group 2 banks 202 cast votes. The
Federal Reserve Board has redesignated Pierre Jay, of New
York City, Chairman of the Board and Federal Reserve Agent
for the year 1924, and has reappointed W. L. Saunders, of
New York City, Chairman of the Ingersoll-Rand Company, as
Class C director, for a term of three years beginning January 1,
1924, and redesignated him Deputy Chairman of the Board for
the year 1924.



36

NINTH ANNUAL KEPORT

Member of Advisory Council
At a meeting of the board of directors held on January 3,
1923, 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 1923.
Officers and Staff
The general plan of organization for the operation of the
bank was continued during 1923, with only minor modifications,
but there were a number of changes in official personnel.
On January 3, Carl Snyder, formerly manager of the statistics department, was appointed general statistician of the
bank, and W. Randolph Burgess, formerly chief of the reports
division, was appointed manager of the reports department.
The name of the statistics department was changed to the reports department.
On January 31, Ray M. Gidney resigned as controller at
large to accept a position with a member bank in Buffalo.
On April 30, Francis Oakey resigned as general auditor to
resume private practice as an accountant; Leslie R. Rounds,
formerly controller of accounts, became acting general auditor;
and Joseph D. Higgins, controller at large, was assigned to the
accounts function. On January 1, 1924, Mr. Rounds became
general auditor.
On August 30, Shepard Morgan, assistant Federal Reserve
agent, was granted a year's leave of absence without pay on
account of his health, to be effective October 1; Gilbert E.
Chapin, controller of loans, assumed supervision of the member
bank relations department in addition to his other duties;
W. Randolph Burgess, formerly manager of the reports department, was appointed assistant Federal Reserve agent;
W. H. Dillistin was appointed assistant Federal Reserve agent
in addition to his duties as manager of the bank examinations
department; and George B. Roberts, formerly chief of the
reports division, became manager of the reports department.
The number of employees of the bank was reduced from
3,043 on December 31, 1922, to 2,738 on December 31, 1923, or a
reduction of 305 persons. A considerable part of this reduction was due to the fact that in December a year ago work in
connection with the redemption of Victory Notes and War
Savings Stamps made necessary a temporary increase of about
175 employees. The balance of the reduction was a result of
more economical procedure in various departments of the bank
and was effected notwithstanding the fact that the volume of
work handled by many of the operating departments was considerably enlarged, and that increases in the staffs of some of
these departments were necessary.



FEDERAL RESERVE BANK OF NEW YORK

37

The salary liability of the bank, exclusive of officers, decreased from $4,261,533.33 on December 31,1922, to $4,058,433.33
on December 31, 1923, or $203,100, in spite of considerable
salary increases. The reduction in salary liability was accomplished by reduction in the size of the staff and by replacing at
lower salaries employees who resigned. During the year 1,268
employees receiving average salaries of $1,090 per annum resigned or were released, and 965 new and less experienced
employees were taken on at an average salary of $885.
An educational course in the principles and operations of
the bank was continued during the year with the special group,
organized in 1922, one-half of whom were selected young men
from the bank and one-half recent college graduates. These
men 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 work in the check department, the city collection division, or as pages. Many consultations were held with
employees concerning educational work outside of office hours.
The organization of employees of the bank, known as the
Federal Reserve Club, at the request of its governing board,
was furnished with an executive secretary, a director of men's
activities, and a director of women's activities. A club office
was established, the activities of the organization increased and
placed on a more substantial basis. The club organizes and
directs educational, social, and athletic activities, maintains a
thrift association with over $100,000 on deposit, and recreational library, and publishes a weekly bulletin. I t keeps employees informed concerning available educational courses and
administers a fund made available by the bank to pay half the
tuition of employees who complete satisfactorily approved educational courses. The club includes in its active membership
most of the non-official staff of the bank.

BANK PREMISES
During the year the operations of the bank were conducted
as in the previous year in scattered offices on the basement, first,
third, fourth, fifth, twenty-fourth, and twenty-fifth floors of the
Equitable Building, in the Subtreasury, and in the bank's annex
building. In addition certain of the bank's securities and other
property were stored in the vaults of the New York Clearing
House. As the work of the operating departments of the bank
steadily increased, the inconvenience and insecurity arising
from these conditions became even more evident than in previous years.




38

NINTH ANNUAL REPORT

Work went forward rapidly on the new building, which is
being constructed in the block on Nassau Street between Liberty
Street and Maiden Lane. The steel frame work had been completed in 1922. In 1923 the exterior stone work was completed,
the building closed in, and the interior work well advanced.
The vaults are about 95 per cent, complete. The building should
be ready for occupancy some time during 1924.
During 1923 unusually difficult conditions of building have
resulted in some delay. There were strikes in a number of the
important building trades, and on the settlement of these
strikes a shortage of workers was created by the fact that many
of the mechanics who had left town during the strikes to obtain
work elsewhere did not return when strike conditions no longer
prevailed. It was in many cases impossible to procure a sufficient number of artisans to carry forward the work with maximum speed. It was deemed desirable to avoid as far as possible
overtime and night work because of the excessive costs which
they would involve.
With the work so nearly completed it is now possible to
make a reasonably close estimate of the total cost of the building, which may be conservatively placed somewhere in the
neighborhood of $14,000,000, including vault equipment and
such other new equipment as is required. This figure is more
than 20 per cent, under the original estimate of the cost of
the building and equipment amounting to approximately
$18,600,000. The saving from the original estimate has been
partly the result of some decrease in the general level of building costs between the time when first estimates were made early
in 1921, and the time when contracts were actually signed, but
more largely the result of the constant efforts of the architects
and contractors to secure economy of design and execution.
The new building is an investment of the bank and its cost
is not chargeable against current expenditures, and hence is
not deducted from the bank's annual earnings, except as depreciation and other reserves are set aside in accordance with
usual accounting practice under the rulings of the Federal
Reserve Board. The new building will afford great added convenience for the bank, together with a maximum degree of
safety. Pending further growth of the bank it will be possible
to rent some space in the new bank building as well as in the
annex building. The leases which the bank now holds for certain floors of the Equitable Building should be disposed of on
favorable terms. The Subtreasury building will be freed for
Government use.




FEDERAL RESERVE BANK OF NEW YORK

39

BUFFALO BRANCH
The following tabular summary of the operations of the
Buffalo Branch indicates that the work carried on by that
branch, which deals primarily with the 10 most western counties of New York State, has been increasing at an even more
rapid rate than the work of the main bank in New York.
(000 omitted)

Year

1921
1922
1923

Currency
and Coin
Operations

Loans
Made

Interest
Earned

$286,944
321,897
411,715

$1,043,884
608,768
860,520

$1,694
457
976

Notes,
Checks and Drafts,
Transit
and other
Items*
Time
Collection
Items
$1,888,363
1,969,746
2,559,765

$88,932
85,253
102,934

Wire
Transfers

$389,944
613,981
678,677

"The following items which represent amounts sent to New York Bank for collection are excluded: 1921—$226,067; 1922—$223,771; 1923—$223,148.

The numbers of officers and employees on December 31 of
each year and the annual expenses of operation were as follows:
Number of Employees
Dec. 31
1920
1921
1922
1923

Officers
3
3
4
4

Other
124
131
153
132

Expenses of Operation
$278,553
338,777
279,639
324,035

The directors of the branch, all of whose terms expire each
year, have been reappointed for 1924, with the exception of
Messrs. E. J. Barcalo and Thomas E. Lannin. Messrs. Carlton
M. Smith and Wolcott J. Humphrey have been appointed to fill
the vacancies. There has been no change during the year in
the official staff of the branch.




Ill
FISCAL AGENCY OPERATIONS
The bank continued, as fiscal agent of the United States, to
perform duties similar to those carried on in previous years.
The bank performed for the Government seven major functions.
1.
2.
3.
4.
5.
6.
7.

The sale and redemption of Treasury certificates of indebtedness.
The sale of short term Treasury notes.
The redemption and exchange of Victory notes.
The handling of Government deposits and disbursements.
The exchange and conversion of Government bonds.
The redemption and exchange of War Savings certificates.
The sale of Treasury Savings certificates.

Treasury Notes and Certificates
Under the policy inaugurated by the Treasury in 1921 of
redistributing the short maturing Government debt into more
distant and more manageable maturities, there were sold in
the early months of 1923 two more issues of short term Treasury notes to retire certificates of indebtedness and to refund
maturing Victory notes. Taken together, the five issues of
notes in 1922 and the two issues in 1923 amounted to about
$3,550,000,000, or an amount practically identical with the
amount of Victory notes maturing in the two years. As a
result of these operations, together with purchases for the
sinking fund, the maturity of Victory notes was handled without disturbance to the money markets and without the necessity for any large single refunding issue. The amount of certificates of indebtedness outstanding was also reduced by more

/^

r
DEBT
j/TOTA

CTORY N0TT8

"•-- U .
1

Mi

r
1
A

1917

P\

195Q

TREAJ
ES;

k CERTIF CATE8 0 \
i

.V

_l
1319

1920

rr

1921

H
1922

•.

y

B

I.

1917

1923

Changes in Type of Short-dated
Government Debt Outstanding




//
/

...•• SHORT*' •~"~—•
DATED DEBT

.

^^

A

/v191S

1919

1920

1921

1922

The Government Debt

40

J
1923

FEDERAL RESERVE BANK OF NEW YORK

\

41

than $1,000,000,000. In January 1922, there were more than
$2,000,000,000 of certificates outstanding and at the close of
1923 the amount was less than $1,000,000,000.
The changes since 1917 in the type of the short dated Government debt outstanding are shown in the diagram on the left
at the bottom of page 41. The movement of the three lines
shows the retirement of Victory notes, the issues of 3 and 4 year
Treasury notes, and the accompanying reduction in the amount
of certificates outstanding.
The diagram on the right shows the changes in the amount
of the total gross debt and the debt that matures within five
years and indicates a gradual reduction of $4,680,000,000 since
the high point on August 31, 1919. The short dated debt
(which largely consisted of Treasury certificates of indebtedness and Treasury notes maturing within five years) was reduced from the high point of $8,991,000,000 on August 31, 1919,
to $5,451,000,000 by September 1, 1923.
The Third Liberty Loan bonds maturing in 1928, of which
on December 31, 1923, there were outstanding $3,267,000,000,
have since fallen within the five year class and have accordingly
increased the amount of the short dated debt to $8,641,000,000
on December 31, 1923.
The amounts and rates of notes and certificates sold in 1923
are shown in the following table.

Maturity

Issue

Treasury Notes
Jan. 15, 1923
May 15, 1923
Certificates of
Indebtedness
Mar. 15, 1923
June 15, 1923
Sept. 15, 1923
Dec. 15, 1923

Dec. 15, 1927
Mar. 15, 1927
/Sept.
\Mar.
Dec.
Mar.
/June
\Dec.

Total

15,
15,
15,
15,
16,
15,

1923
1924
1923
1924
1924
1924

Rate

Total Allotment in
United
States

Allotment
in 2nd
District

4^
4M

$366,981,500
668,201,400

$131,411,400
262,491,600

4M
4^
4
4M
4
4K

154,252,000
321,196,000
189,833,500
249,750,500
135,128,500
214,149,000

62,789,000
118,685,500
74,855,500
78,348,500
43,743,500
62,405,000

$2,299,492,400

$834,730,000

The reduction in certificates outstanding has made possible
fewer and smaller sales of certificates, as is indicated by the
following table of the amounts of certificates sold in successive
years, both in the country as a whole and in the New York
district.



42

NINTH ANNUAL REPORT

Year
1917
1918
1919
1920
1921
1922
1923

Certificates Sold
U.S.
$3,880,570,000
10,742,094,000
11,246,820,500
3,939,832,500
2,909,981,500
1,427,226,000
1,264,309,500

Certificates Sold
2nd District
$2,422,075,500
4,091,260,000
4,506,155,500
1,716,680,500
1,176,843,000
624,382,000
440,827,000

There was a substantial investment demand for the new
Government issues throughout the year and the method adopted
by the Treasury of alloting in full to small subscribers resulted
in a wider distribution. Many banks and corporations continued to find Government securities a profitable means of employing temporarily idle funds.
The extent of bank holdings of Government securities in this
district is indicated by the following table of Government obligations held at the end of December of successive years by the
reporting member banks in the principal cities of the district,
representing about 80 per cent, of the banking resources (including savings banks) of the district.
End of
Year

Certificates of Indebtedness,
Victory Notes, and Treasury Notes Liberty Bonds and Treasury Bonds
$451,901,000
387,583,000
244,298,000
298,793,000
585,997,000
502,005,000

1918
1919
1920
1921
1922
1923

$326,007,000
271,521,000
260,673,000
316,077,000
543,794,000
475,815,000

Redemption of Victory Notes
At the beginning of 1923 a total of about $1,092,000,000 of
Victory notes was outstanding, of which about $237,000,000 was
of the series called for redemption on December 15, 1922.
On March 8 the Secretary of the Treasury offered to exchange outstanding Victory notes, called or uncalled, for new
Treasury issues of more distant maturity, and on March 26
offered to redeem, at the option of the holders, unmatured notes
at par and accrued interest in advance of the redemption dates.
At the end of 1923 the total that remained outstanding was
$28,221,200.
The operations of this bank during the past two years in
connection with the retirement of Victory notes are summarized
in the following table.



I

FEDERAL RESERVE BANK OF NEW YORK
Redeemed by Exchange
1922

1923

43

Redeemed for Cash
1922

1923

Victory Notes:
$218,192,350
3% per cent., called June 15, 1922 $8,401,900
4% per cent., called Dec. 15, 1922 730,638,350 $1,012,550 123,585,200
4% per cent., matured May 20,
1923
1,419,000
30,427,450 168,530,600

$1,325,800
40,056,800
92,394,700

Government Deposits and Disbursements
The banks of this district which subscribed for new issues of
Government obligations continued to pay for them largely 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 funds. The smallest amount
on deposit with qualified depositaries in 1923 was $9,992,350 on
December 14 and the largest $210,569,000 on May 19. Collateral
pledged with this bank as security against such deposits
amounted at maximum to $341,205,000.
As has been customary, tax receipts were credited to the
Treasurer's account with this bank, and at quarterly dates of
income tax payments this bank lent the Collectors of Internal
Revenue a staff of clerks for an average period of ten days
fco assist in handling tax receipts expeditiously. The clerks
were paid by the Government for overtime, but their ordinary
salaries were paid by the bank. This assistance has made it
possible for the Treasurer to receive credit on the day following
the receipt of checks in the Collector's office. As tax receipts
in New York City have been approximately one-quarter of
receipts throughout the country rapid collection of such checks
resulted in a large saving of interest to the Government. It
has also resulted in a reduction of advances by this bank to
the Government at tax periods, covered by special certificates
of indebtedness.
The number and amount of Government checks handled by
this bank during the past 7 years are given below.
Year

Number

Amount

3,029,000
$1,099,458,000
1917.
11,108,000
4,936,592,000
1918.
13,052,000
7,653,565,000
1919.
10,852,000
2,465,931,000
1920.
12,488,000
1,638,094,000
1921.
12,728,000
1,308,752,000
1922.
13.125,000
1,392,272,000
1923.
NOTE: The officers' checks issued by this bank to redeem certificates of indebtedness,
and Victory notes, and in payment of coupons, are not included in the above figures.



44

NINTH ANNUAL REPORT

Exchange and Conversion of Government Bonds and Notes
As in previous years, the bank conducted exchanges from
one denomination to another of Liberty bonds, certificates of
indebtedness, and Treasury notes, as well as Victory notes up
to the time of their due date May 20, 1923; also conversions of
4 per cent. Liberty bonds for 4% per cent., with an adjustment
of interest, and exchanges of coupon bonds for registered and
registered for coupon. The extent of these transactions during
1923 compared with 1922 appears in the following table.
Received
Year
1922
1923

Pieces

Value

5,136,531
1,762,613

$1,883,483,660
$1,150,862,870

Delivered
Pieces
848,393
471,626

Value
$1,885,298,010
$1,160,653,050

The bank continued to cash coupons from Government bonds,
Federal Farm Loan bonds, War Finance Corporation bonds,
and other similar issues. Federal Farm Loan bonds called for
payment May 1,1923 were also redeemed. The amount of such
coupons aggregated $337,344,000, or 17,683,617 pieces during the
year, and the amount of Federal Farm Loan bonds redeemed
was $32,868,000.
Redemption and Exchange of War Savings Certificates
The bank continued throughout 1923 to redeem War Savings
certificates of the series of 1918, or to exchange them for
Treasury Savings certificates. The largest volume of these
transactions was handled during January 1923, when the bank
received for redemption or exchange 4,297,346 separate $5
stamps, amounting to $21,486,730.
Treasury Savings Certificates
On December 1, 1923, the Secretary of the Treasury placed
on sale a new issue of Treasury Savings certificates at the reduced price of $80 per $100 certificate, as compared with the
former price of $82 per $100 certificate. This change in price
has the effect of raising the rate of interest from about 4 per
cent, to approximately 4% per cent, compounded semi-annually,
if the certificates are held to maturity. On December 1 the
bank began the redemption and exchange of the 1919 series of
War Savings certificates under practically the same terms and
regulations as covered the 1918 issue. During the month of
December 1923, this bank effected exchanges of this issue
amounting to $48,400 and received $515,315 for redemption as
of January 1, 1924.



APPENDIX
EXHIBITS
LETTEK

TITLE

PAGE

A

Statement of Condition

46-47

B

Profit a n d Loss Account

48

C

Capital a n d Surplus Accounts

D

P r i n c i p a l Assets a n d Liabilities each week i n 1923 .

E

B a t e s i n Effect D u r i n g 1923

49
.

.

. 50-51
.

F

Discounts a n d Advances

G

Open Market Acceptance Purchases

52
53

.

.

.

.

.

Acceptances Eediscounted for Member Banks .

57

J

Check Collections

58

K

Telegraphic Transfers

59

L

Gold Settlement F u n d

60-62

M

Personnel and Annual Salary Eate

N

Volume of Operations in Major Departments




45

.

.

.

.

.

.

54-55

Federal Eeserve Notes

.

.

.

I

.

.

.

H

.

.

.

.

56

63
64

46

NINTH ANNUAL REPORT

Exhibit A

STATEMENT OF CONDITION
At the Close of Business, Dec. 31, 1923, and Dec. 31,1922
Resources
Cash reserves held by this bank against its
deposits and note circulation:
Gold held by the Federal Reserve agent as
part of the collateral deposited by the
bank when it obtains Federal Reserve
notes. This gold is lodged 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
Gold and gold certificates in vault
Gold in the Gold Settlement Fund lodged
with the Treasurer of the United States for
the purpose of settling current transactions between Federal Reserve districts. .
Legal tender notes, silver, and silver certificates in the vaults of the bank (available
as reserve only against deposits)
Total cash reserves
Non-Reserve Cash, consisting of National
Bank notes, Federal Reserve Bank notes
and minor coin (included in 1922 largely
under checks and other items in process
of collection)
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
Checks and other items in process of collection.
All other miscellaneous resources
Total miscellaneous resources
Total resources



Dec. 31, 1923

Dec. 31, 1922

$583,625,240.61

$658,970,228.28

9,441,006.21
168,615,033.36

10,308,820.39
118,126,581.76

109,813.734.55

169,378,439.83

24,437,091.00

31,313,929.70

$895,932,105.73

$988,097,999.96

$11,845,810.23

$136,174,500.00

$168,235,591.11

28,360,300.73
93,151,232.70

16,053,362.30
60,863,602.89

46,755,950.00

167,252,450.00

$304,441,983.43

$412,405,006.30

$14,671,614.78
115,064,470.49
1,067,449.28

$10,238,178.58
134,303,106.41
1,892,589.25

$130,803,534.55

$146,433,874.24

$1,343,023,433.94

$1,546,936,880.50

FEDERAL RESERVE BANK OF NEW YORK

47

Exhibit A—Continued

STATEMENT OF CONDITION
At the Close of Business, Dec. 31,1923, and Dec. 31, 1922
Liabilities

Dec. 31, 1923

Dec. 31, 1922

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

$420,371,240.00

$597,071,293.50

$712,857,792.81

$749,005,902.75

9,562,383.00

517,656.11

12,405,744.27

11,439,182.74

$734,825,920.08

$760,962,741.60

$95,341,849.44
3,116,157.21

$98,100,885.92
2,313,986.23

$98,458,006.65

$100,414,872.15

$29,439,300.00

$28,688,450.00

59,928,967.21

59,799,523.25

$89,368,267.21

$88,487,973.25

$1,343,023,433.94

$1,546,936,880.50

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

* Includes depreciation reserve of $1,373,552.31 for 1923 and $137,615.78 for 1922 set aside
against bank premises.




NINTH ANNUAL REPORT

Exhibit B

PROFIT AND LOSS ACCOUNT
For the Calendar Years 1923 and 1922
EAHNIN<5S

From loans to member banks and paper discounted for them
From acceptances owned
From United States Government securities
owned
Other earnings
Total earnings

1923

1922

$8,255,645.84
1,969,837.16

$3,970,209.76
1,619,512.13

1,087,250.95
100,448.81

5,643,385.44
108,211.44

$11,413,182.76

$11,341,318.77

$6,458,906.87

$6,223,404.61

421,229.30

553,124.78

1,489,367.49

843,196.31

$8,369,503.66

$7,619,725.70

$3,043,679.10

$3,721,593.07

$1,749,239.47

$1,652,138.30

129,443.96

206,945.48

1,164,995.67

1,862,509.29

$3,043,679.10

$3,721,593.07

DEDUCTIONS FEOM EABNIN^S

For current bank operation. (These figures
include the greater portion of expenses
incurred as fiscal agent of the United
States.)
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 depreciation, self-insurance, and other
reserves, etc
Total deductions from earnings
Net income available for dividends, additions to surplus, and payment to the
United States Government
DlSTKIBTJTION OP NET 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 net
earnings, after payment of dividends, 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
representing the entire net income of the
bank after paying dividends and making
additions to surplus (Federal Reserve
notes are not taxed, and this payment is
in lieu of taxes on notes and other Federal
taxes.)
Total net income distributed



FEDERAL RESERVE BANK OF NEW YORK

49

Exhibit C

CAPITAL AND SURPLUS ACCOUNTS
Capital Account Reconciliation
$28,688,450.00

CAPITAL PAID IN JANUARY 1, 1923
INCREASE :

Due to increase of capital and surplus of member
banks
Due to organization of new National banks
Due to admission of State banks and trust companies

$969,850.00
301,250.00
1,051,000.00
2,322,100.00
$31,010,550.00

DECREASE :

Due to decrease in capital and surplus of member
banks
$30,000.00
Due to banks liquidating, consolidating, or converting
1,541,250.00
Due to banks withdrawing from System
0
1,571,250.00
PAID IN CAPITAL DECEMBER 31, 1923

$29,439,300.00

Surplus Account
SURPLUS ON JANUARY 1, 1923.

$59,799,523.25

INCREASE :

Due to payment into surplus of 10 per cent, of net
income for 1923 remaining after paying dividends.
SURPLUS ON DECEMBER 31, 1923.




129,443.96
$59,928,967.21

Exhibit D

PRINCIPAL ASSETS AND LIABILITIES—EACH WEEK IN 1923

en

o

(Amounts in thousands of dollars)

Date

Total
Earning
Assets
(2+5+6)

1
$358,749
3
1 0 . . . . 352,055
1 7 . . . . 322,176
2 4 . . . . 345,557
3 1 . . . . 358,718
Feb. 7 . . . . 300,749
1 4 . . . . 377,278
2 1 . . . . 311,349
2 8 . . . . 289,490
Mar. 7 . . . . 255,775
1 4 . . . . 269,173
2 1 . . . . 216,941
2 8 . . . . 287,949
Apr. 4 . . . . 256,891
1 1 . . . . 246,046
1 8 . . . . 239,528
2 5 . . . . 210,444
269,686
May 2
9 . . . . 260,141
1 6 . . . . 236,031
2 3 . . . . 263,019
2 9 . . . . 259,851
June 6 . . . . 289,625
1 3 . . . . 248,003
2 0 . . . . 198,320
2 7 . . . . 235,183


Jan.

Bills Discounted for
Member Banks

Total

2
$185,584
167,852
182,733
216,641
251,864
221,033
294,250
240,447
210,222
200,239
209,482
170,037
228,901
210,603
182,175
169,576
154,134
211,574
198,730
153,237
163,317
171,125
194,419
179,079
138,845
160,328

Bills
Bought
in Open
Market

United
States
Securities

Total
Cash
Reserves

Member
Banks'
Reserve
Deposits

Total
Deposits

4

5

6

7

8

9

$15,889
13,277
21,231
25,358
21,252
27,924
34,492
45,974
31,006
29,898
33,309
33,572
51,934
44,935
44,839
38,561
31,000
75,118
50,127
28,700
30,300
43,414
40,998
48,885
33,464
39,372

$51,796
37,724
29,394
32,066
27,785
27,410
29,793
27,312
30,470
29,480
35,264
29,242
34,309
27,462
46,840
50,911
45,161
54,373
56,838
75,645
73,552
75,500
74,058
52,314
38,964
43,712

Bills
Other
Secured by
Bills
U. S. Govt. Discounted
Obligations
3
$169,695
154,575
161,502
191,283
230,612
193,109
259,758
194,473
179,216
170,341
176,173
136,465
176,967
165,668
137,336
131,015
123,134
136,456
148,603
124,537
133,017
127,711
153,421
130,194
105,381
120,956

$121,369
146,479
110,049
96,850
79,069
52,306
53,235
43,590
48,798
26,056
24,427
17,662
24,739
18,826
17,031
19,041
11,149
3,739
4,573
7,149
26,150
13,226
21,148
16,610
20,511
31,143

$1,013,570
1,025,054
986,428
977,448
983,868
1,041,269
1,002,764
1,024,725
1,050,354
1,061,547
1,069,933
1,115,002
1,081,560
1,085,976
1,074,395
1,094,888
1,091,527
1,094,695
1,071,201
1,105,163
1,070,674
1,065,715
1,057,622
1,076,726
1,116,884
1,083,365

$741,929
762,804
711,692
722,717
720,929
719,607
755,686
707,269
712,106
683,969
724,458
681,053
707,865
689,544
691,416
722,586
682,516
713,310
694,445
722,577
707,626
680,128
704,990
714,054
700,560
705,323

$754,455
775,000
723,930
739,942
744,157
743,923
778,494
727,740
734,747
704,761
734,753
719,303
756,172
733,837
717,708
745,315
704,004
753,009
719,109
751,348
728,269
707,548
735,840
737,673
727,047
739,368

Federal
Reserve Reserve
Notes in PercentCirculation ages

10
$597,350
565,213
552,218
545,265
551,029
554,344
560,010
569,795
568,124
570,391
567,169
568,287
565,691
574,400
565,181
561,366
559,220
571,466
566,318
562,182
559,876
566,030
568,599
555,158
547,527
533,713

11
75.0
76.5
77.3
76.1
76.0
80.2
74.9
79.0
80.6
83.2
82.2
86.6
81.8
83.0
83.7
83.8
86.4
82.7
83.3
84.1
83.1
83.7
81.1
83.3
87.6
85.1

Exhibit D—Continued
1
July 3.... $304,651
11.... 271,961
18.... 243,237
25.... 219,475
Aug. 1.... 261,580
8.... 266,498
15.... 233,184
22.... 207,142
29.... 226,163
269,440
Sept. 5
12.... 259,772
19.... 172,216
26.... 236,967
Oct. 3
239,907
10.... 244,637
17.... 226,604
24.... 204,087
31.... 265,149
Nov. 7.... 265,486
14.... 257,436
21.... 216,164
28.... 235,440
Dec. 5... 238,789
1 2 . . . 270,119
19.... 229,591
26.... 317,407




2

3

4

5

6

7

8

9

10

11

$259,723
219,643
185,821
167,569
209,406
222,872
195,625
167,391
180,312
209,788
205,694
138,737
200,452
203,976
205,047
170,808
163,441
201,803
174,430
162,286
125,645
131,843
124,149
143,594
130,598
204,956

$197,137
161,777
149,662
126,417
148,391
172,663
146,794
124,742
125,507
152,620
144,183
90,196
146,370
136,459
146,344
116,593
111,001
149,580
119,262
117,986
86,575
102,644
92,041
98,610
104,894
158,190

$62,586
57,866
36,159
41,152
61,015
50,209
48,831
42,649
54,805
57,168
61,511
48,541
54,082
67,517
58,703
54,215
52,440
52,223
55,168
44,300
39,070
29,199
32,108
44,984
25,704
46,766

$40,101
42,345
46,456
39,671
40,000
37,002
31,910
35,905
33,440
41,271
36,828
23,435
26,556
22,357
32,741
43,727
36,097
52,437
78,407
78,420
84,420
87,993
91,980
102,300
89,294
90,052

$4,827
9,973
10,960
12,235
12,174
6,624
5,649
3,846
12,411
18,381
17,250
10,044
9,959
13,574
6,849
12,069
4,549
10,909
12,649
16,730
6,099
15,604
22,660
24,225
9,699
22,399

$1,031,267
1,025,090
1,027,659
1,011,198
1,017,321
989,687
986,539
1,013,247
998,367
951,030
975,459
1,029,633
995,597
990,412
980,209
982,225
996,601
977,501
948,503
930,354
981,238
964,147
932,116
927,206
914,396
885,222

$730,923
719,493
697,983
661,780
715,734
690,236
668,701
659,730
674,461
674,965
689,101
664,932
690,808
700,065
693,640
705,579
688,145
718,144
673,563
695,828
699,803
701,181
685,630
716,648
669,767
705,485

$753,915
737,686
720,222
684,314
738,899
707,441
690,204
683,676
694,471
692,207
718,050
696,654
720,642
721,257
711,542
725,956
706,001
742,567
692,226
723,644
717,909
720,319
703,261
731,995
684,474
725,480

$546,814
526,422
513,330
503,111
497,762
504,061
496,945
495,327
484,705
486,765
481,804
478,053
469,443
474,894
471,073
463,507
457,029
449,883
455,559
443,898
433,315
429,997
426,837
421,946
422,165
428,579

79.3
81.1
83.3
85.2
82.3
81.7
83.1
85.9
84.7
80.7
81.3
87.7
83.7
82.8
82.9
82.6
85.7
82.0
82.6
79.7
85.2
83.8
82.5
80.4
82.6
76.7

52

NINTH ANNUAL KEPORT

Exhibit E

RATES IN EFFECT DURING 1923
For Discounts and Advances to Member Banks
Rates on All Classes of
Eligible Paper

Period
January 1-February 22
February 23-December 31

4

For Open Market Purchases of Bankers Acceptances
Minimum Rates
Period

Authorized

Actual
30
60
Days Days

January 1-April 16.
April 17-May 16...
May 17-May 22.. .,
May 23-July 6
July 7-December 31




90
120
180
Days Days Days

53

FEDERAL EESERVE BANK OF NEW YORK
Exhibit F

DISCOUNTS AND ADVANCES
Total Made Each Month, 1923 and 1922
1923
Month

Number
of Items

1922

Amount

Number
of Items

Amount

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

4,290
4,501
6,096
5,860
6,390
7,337
7,549
6,613
6,142
6,581
4,973
5,845

$2,612,835,315.53
2,393,408,807.49
1,995,975,852.61
1,793,116,182.15
1,747,308,520.33
1,113,221,550.22
1,503,906,579.29
1,137,184,815.40
806,281,429.32
939,391,666.37
942,119,471.65
967,093,086.67

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

Total

72,177

$17,951,843,277.03

60,715

$9,206,363,786.02

Type and Maturity of Bills Held December 31, 1923
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

$136,165,100.00 $20,220,859.48 $73,566,026.80 $229,951,986.28
2,891,131.64
7,030,463.56
9,921,595.20
3,479,731.95
9,600,390.23 13,089,522.18
9,400.00
1,756,296.51
2,769,550.81
4,525,847.32
8,314.15
3,967.00

175,751.62
9,049.68

184,065.77
3,967.00
9,049.68

Total Dec. 31, 1923 . $136,174,500.00 $28,360,300.73 $93,151,232.70 $257,686,033.43
Average maturity in
days
8
18
15
12
Total Dec. 31, 1922. $168,235,591.11 $16,053,362.30 $60,863,602.89 $245,152,556.30
Average maturity in
21
days
8
12
22
Total Dec. 31, 1921. $156,013,679.05 $53,066,308.08 $72,593,292.33 $281,673,279.46
Average maturity in
23
15
8
days
13
Total Dec. 31, 1920. $454,751,722.52 $416,686,474.82 $113,740,374.53 $985,178,571.87
Average maturity in
28
16
13
16
days
Total Dec. 31, 1919. $562,089,842.45 $228,713,445.79 $202,902,609.54 $993,705,897.78
Average maturity in
days
14
18
44
21
*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 1923
2

Bankers
Acceptances
Import
and Export

Bankers
Domestic
Acceptances

$38,242,533.80
30,826,449.73
57,093,705.08
59,512,994.41
81,619,318.54
74,644,766.74
68,575,669.35
56,865,773.27
59,140,019.61
69,546,051.52
129,841,154.72
112,466,190.71

Domestic
Trade
Acceptances

Total
1923

Indorsed Trade
Bills of
Foreign Origin

Bills Drawn
to furnish
Dollar Exchange

$9,246,231.42
14,821,451.56
11,561,255.89
18,405,943.65
30,595,328.89
15,444,707.78
18,608,131.36
17,853,319.27
13,481,252.37
25,140,651.52
51,945,661.11
43,417,100.93

$889,305.48
1,529,367.00
1,888,068.80
1,588,340.52
1,289,183.61
835,429.01
59,416.37
321,886.06
754,166.48
722,956.79
1,623,621.62
1,119,250.80

$850,000.00
3,001,873.56
5,152,879.78
6,142,051.21
6,248,544.79
2,195,872.86
5,578,563.34
1,774,512.03
3,401,711.86
6,182,521.72
7,400,777.76
7,552,784.77

Total 1923... $838,374,627.48

$270,521,035.75

$12,620,992.54

$55,482,093.68

$174,382,335.98

$5,215,711.49

$37,122,858.15

$292,040.00

Total
1922

$648,499.55 $1,177,647,249.00

Total 1922... $654,419,797.81

I—I

Month

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




$78,908.72

569,590.83

$49,228,070.70
50,179,141.85
75,774,818.27
85,649,329.79
119,752,375.83
93,120,776.39
92,821,780.42
76,815,490.63
76,777,150.32
101,592,181.55
190,811,215.21
165,124,918.04

$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

$871,432,743/'

3

hd

o

Exhibit G—Continued

OPEN MARKET ACCEPTANCE PURCHASES
Bills Bought for the Account of Other Federal Reserve Banks in 1923

Month

Bankers
Acceptances
Import
and Export

Bankers
Domestic
Acceptances

Bills Drawn
to furnish
Dollar Exchange

Total
1923

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

$24,312,804.48
48,511,817.54
81,468,451.46
38,102,396.92
20,360,157.53
15,035,947.45
27,877,235.93
28,644,838.51
27,444,054.87
35,165,976.06
35,316,118.73
66,016,813.60

$6,555,163.11
11,775,061.77
15,233,328.62
8,099,684.27
6,561,717.02
3,344,215.40
6,690,276.74
7,206,044.85
7,669,648.33
8,696,620.76
9,250,146.70
21,056,426.74

$982,556.66
1,378,766.97
3,223,083.93
649,236.03
1,210,000.00
553,616.00
2,011,872.77
318,512.69
1,115,098.65
1,485,000.00
1,717,319.06
4,338,506.39

$31,850,524.25
61,665,646.28
99,924,864.01
46,851,317.22
28,131,874.55
18,933,778.85
36,579,385.44
36,169,396.05
36,228,801.85
45,347,596.82
46,283,584.49
91,411,746.73

Total 1923

$448,256,613.08

$112,138,334.31

$18,983,569.15

$250,975,281.79

$55,958,079.04

$8,857,752.29

a
>
Total
1922

$579,378,516.54

Total 1922

O




$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

$315,791,113.12

c
-

NINTH ANNUAL REPORT

56

Exhibit H

ACCEPTANCES REDISCOUNTED FOR MEMBER
BANKS IN 1923
Distribution by Months and Classes of Bills
Month

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

Bankers
Acceptances
$94,050.00
289,804.07
25,659.64

9,500.80
12,500.00
23,666.97
15,000.00

Trade Acceptances
Total
Domestic

Foreign

$139,548.29
150,551.29
285,997.78
609,738.12
178,135.44
715,051.20
517,119.62
592,028.71
567,182.91
378,125.44
558,010.17
504,319.85

$110,000.00
173,012.40
409,200.00
301,000.00
193,000.00
173,000.00
20,000.00

$343,598.29
613,367.76
720,857.42
609,738.12
479,135.44
908,051.20
699,620.42
604,528.71
567,182.91
421,792.41
573,010.17
504,319.85

Total 1923. .

$470,181.48

$5,195,808.82

$1,379,212.40

$7,045,202.70

Total 1922..

$192,028.29

$7,205,907.97

$1,317,127.06

$8,715,063.32




FEDERAL RESERVE BANK OF NEW YORK

57

Exhibit I

FEDERAL RESERVE NOTES
Issues, Retirements, and Amount Outstanding
Total issued to the bank by the Federal Reserve Agent:
1914 to 1922, inclusive
During 1923

$3,326,123,000.00
346,270,000.00
$3,672,393,000.00

Notes unfit for circulation retired:
1914 to 1922, inclusive
During 1923

$2,551,189,120.00
408,790,630.00
a2,959,979,750.00

Amount outstanding December 31, 1923

$712,413,250.00

Amount outstanding December 31, 1923:
In actual circulation
Held by Federal Reserve Bank
Total

$420,371,240.00
292,042,010.00
$712,413,250.00

On December 31, 1923, the Federal Reserve Agent held
against Federal Reserve notes:
Gold and gold certificates
Eligible paper

$583,625,240.61
224,279,692.11

Total

$807,904,932.72

a Includes $288,033,000 of notes fit for circulation returned by the bank and by the
United States Treasurer.




Exhibit J

CHECK COLLECTIONS
Classification of Checks Handled by the Federal Reserve Bank of New York in 1923
(Amounts in thousands of dollars)

Excluding duplications between main bank and branch

Month

On Treasurer
of United States
Number

Jan
Feb
March. . .
April
May
June
July
August...
Sept
Oct
Nov
Dec.

Amount

On Banks in Other
Federal Reserve
Districts
Number

Amount

On New York
Clearing House
Number

1,271,326 $131,897 1,325,614 $150,215 1,987,430
928,204
91,751 1,149,393 125,965 1,559,136
1,100,216
98,852 1,414,454 156,086 2,024,530
1,180,790
92,926 1,324,506 162,520 1,773,880
1,154,040 137,517 1,292,279 160,938 1,768,152
1,017,649 110,239 1,286,564 156,415 1,839,898
894,210 101,216 1,212,624 150,214 2,050,805
1,000,542 102,031 1,161,593 143,064 1,838,707
1,113,725
97,542 1,174,797 146,310 1,825,727
1,238,214 142,655 1,430,073 178,603 2,082,340
1,065,943 128,076 1,322,325 152,688 1,767,801
974,965 126,730 1,468,832 147,751 1,806,547

Amount
$1,952,548
1,590,031
2,058,793
1,886,931
1,969,275
2,091,728
1,926,942
1,727,170
1,795,593
2,041,932
1,931,034
2,118,254

On New York City
Outside of Clearing House
Number

Amount

On All Other
Banks irL Second
District
Number

Amount

TOTA
Number

Amount

420,292 $2,225,082 5,632,959 $734,123 10,637,621 $5,193,865
358,124 1,903,381 4,687,849 566,025 8,682,706 4,277,153
502,704 3,032,039 5,725,803 699,643 10,767,707 6,045,413
413,217 2,437,491 5,079,740 714,166 9,772,133 5,294,034
444,494 2,460,623 5,014.266 748,287 9,673,231 5,476,640
490,293 2,347,439 5,054,056 764,684 9,688,460 5,470,505
469,993 2,032,860 4,950,385 744,558 9,578,017 4,955,790
529,386 2,178,794 4,801,588 693,406 9,331,816 4,844,465
519,923 2,042,721 4,531,568 677,975 9,165,740 4,760,141
554,495 2,790,649 5,260,297 765,004 10,565,419 5,918,843
514,270 2,287,122 5,005,281 708,339 9,675,620 5,207,259
586,949 2,364,271 5,475,923 757,151 10,313,216 5,514,157

TOTAL.. 12,939,824 $1,361,432 15,563,054 $1,830,769 22,324,953 $23,090,231 5,804,140 $28,102,472 61,219,715 $8,573,361 117,851,686 $62,958,265
Buffalo...

184,966

$30,840 1,690,665 $311,879 a2,624,747 a$l,298,658

623,904 6$190,396 6,019,610 $727,992 10,543,892 $2,559,765

c
GRAND
d
TOTAL.. 13,124,790 $1,392,272 17,253,719 $2,142,648 24,949,700 c$24,388,889 d5,828,044 $28,292,868 67,239,325 $9,301,353 128,395,578 $65,518,030

a On Buffalo Clearing House.
b On Buffalo outside of Clearing House.




c On New York and Buffalo Clearing Houses.
d On New York and Buffalo outside of Clearing Houses.

ft)

o

i

Exhibit K

a

TELEGRAPHIC TRANSFERS

H

Daily Average

r

>
H

Amount Transferred (in thousands of dollars)

Number of Transfers
Month
1917
January.. .
February..
March....
April
May
June
July
August....
September.
October.. .
November.
December.




1918

1919

1920

1921

1922

1923

31
35
38
48
73
70

65
80
ss
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

875
881
852
904
1,009
900
917
857
930
1,013
1,105
1,040

1917

$31,801
28,536
30,893
37,304
47,191
50,308

1918

1919

1920

1921

$49,138 $61,452 $63,012 $59,498
50,064 54,293 55,790 50,885
42,693 60,427 58,394 57,417
54,740 49,146 54,051 53,439
55,046 47,515 50,651 58,757
70,647 57,251 53,973 63,248
67,710 69,702 53,003 53,153
54,046 61,420 49,652 56,034
55,640 69,960 61,765 66,536
98,785 60,311 65,127 62,612
68,018 62,597 58,022 71,315
86,149 70,495 63,792 68,930

1922

1923

$65,714 $108,223
92,428
70,847
93,619
73,723
90,057
73,355
95,713
81,484
91,588
92,846
86,560
80,924
79,167
77,602
83,136
90,343
91,979
107,409
94,077
84,956
98,662 106,734

td

CO

CT5
O

Exhibit L

GOLD SETTLEMENT FUND
Amounts Received and Paid by the New York Federal Reserve Bank in 1923 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 1923

Received

Paid

$6,004,076,368.91
4,853,783,843.07
2,901,424,534.28
1,935,444,063.50
1,040,373,057.69
4,844,833,352.87
1,061,588,677.44
488,670,065.72
684,527,620.37
692,068,700.42
1,802,850,911.71
415,500,000.00
50,000,000.00

$6,030,032,727.93
4,530,903,400.74
2,475,750,415.88
1,897,970,050.20
1,340,467,436.36
5,123,314,767.03
1,054,105,675.58
526,705,578.71
705,549,069.23
927,046,993.62
1,756,859,785.98
361,000,000.00
30,000,000.00
75,000,000.00

$26,775,141,195.98

$26,834,705,901.26

Net Gain

$25,956,359.02
$322,880,442.33
425,674,118.40
37,474,013.30
7,483,001.86

Net gain or loss 1922. .




300,094,378.67
278,481,414.16
38,035,512.99
21,021,448.86
234,978,293.20
45,991,125.73
54,500,000.00
20,000,000.00
75,000,000.00
$914,002,701.62

$973,567,406.90
$59,564,705.28

Net gain or loss 1923
Total 1922

Net Loss

$22,752,243,738.55

$22,712,923,525.71

$908,895,884.57
$39,320,212.84

$869,575,671.73

W
>
2

Exhibit L—Continued

GOLD SETTLEMENT FUND
Net Gain or Loss by the New York Federal Reserve Bank in 1923 in Settlement with other Federal Reserve Banks
(In thousands of dollars)
Boston

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

Net
Loss

Philadelphia

Net
Gain

Net
Loss

Cleveland

Net
Gain

$14,753 $30,195
10,836
8,263 37,358
9,365
10,215
34,250
13,725
26,710
17,223
13,342
29,169
31,396
12,084
9,943 46,469
29,078
20,831

$13,784
36,971
68,686
40,155
32,064
64,321
5,615
21,915
25,060
53,180
30,000
33,923

Net Gain. .. $56,369
$322,880
Net Loss. . .
$82,325

$425,674

Excess Gain
or Loss...

$2,233

6,655
14,081
23,651
9,749

$25,956 $322,880




Richmond

Net Net
Loss Gain

Net
Loss
$4,577

$7,807
14,682
12,117
7,907
20,706
4,187
10,277
436
12,373
19,348
3,475

Net
Gain

Net
Loss

$37,474

Chicago

Net
Gain

Net
Loss

St. Louis

Net
Gain

Net
Loss

Minneapolis

Kansas City

Net
Gain

Net
Gain

$10,341
$14,625 $25,150
9,951
14,619 $1,490
6,354
11,803
$61,449 $13,869
4,319
5,577
40,333
12,381
31,163 2,115
28,249
5,795
20,918
2,859
6,594
64,467
9,787
561
37,928
19,909 4,008
7,305
53,255
1,615
9,088
58,102
8,615
27,313
74,854
6,297
21,334
$300,094

$300,094

$278,481

$37,910

$313,993
$7,483

Net
Loss
$2,054

Net
Loss
$678

$9,446
1,199
3,889
7,413
3.214
6,407
8,012
2,736
1,515
2,296
791

6,180
5,046
8,359
31,414
2,496
1,664
10,792
7,335
3,966
2,839

Dallas

Net
Gain

Net
Loss

San Francisco

Net
Gain

Net
Loss

$5,432
$15,772
4,116 $27,877
6,671
25,767
17,412
20,043
12,637
11,891
17,092
16,827
15,125
15,724
29,588
6,484
26,508
10,751
35,037
1,052
28,913
9,544
26,107
15,953

$34,622

$1,490

$45,393

$35,512

$77,683
$40,209

$425,674

Atlanta

$106,668

$39,526

$55,643

$38,036

$21,021

$234,978

$60,677

$234,978

$45,991

NINTH ANNUAL REPORT

62

Exhibit L—Continued

GOLD SETTLEMENT FUND
Net Gains and Losses Each Week During 1923 for the
Account of the Federal Reserve Bank of New York
(Amounts in thousands of dollars)
Week
Ended

Wire
Transfers
and Checks
Drawn

United
States
Treasury
Transfers

Dec. 27, 1922
Jan. 3, 1923
10...
17...
24. . .
31...
Feb.
7. . .
14. . .
21...
28...
Mar.
7. . .
14. ..
21.. .
28...
Apr.
4. . .
11. . .
18...
25...
May
2. . .
9...
16...
23...
29. . .
June 6.. .
13...
20...
27...
July 3. . .
11...
18...
25...
Aug. 1 . . .
8...
15...
22...
29...
Sept. 5.. .
12...
19.. .
26...
Oct. 3 . . .
10...
17...
24...
31...
Nov. 7 . . .
14...
21.. .
28...
Dec. 5 . . .
12...
19...
26. ..

+$11,547
+ 68,923
+ 17,248
+ 5,385
+ 9,961
+ 59,873
- 27,363
+ 23,648
+ 17,338
- 2,016
+ 3,567
- 27,664
- 24,356
+ 1,247
- 8,318
+ 28,539
+ 7,829
- 11,564
- 35,721
+ 22,145
+ 3,273
- 1,748
- 23,985
- 10,268
+ 34,185
- 15,405
- 29,498
- 9,557
- 3,280
- 29,443
+ 19,048
- 27,450
- 10,091
+ 23,144
- 15,932
- 33,140
+ 11,259
+ 8,362
- 28,028
- 6,018
- 18,080
- 18,608
+ 2,973
+ 4,587
- 42,864
- 31,648
+ 45,271
- 5,905
- 51,938
- 11,580
- 67,550
- 30,101

-$50,000
- 64,000
- 55,000
- 13,000
+ 2,000
- 3,000
- 1,000
+ 5,000
+ 18,000
+ 8,000
+ 20,000
+ 82,500
+ 2,000
+ 11,000




+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+

3,000
7,000
22,500
11,500
15,000
39,000
4,800
11,000
25,650
16,500
2,000
4,400
3,200
6,000
21,000
4,000
10,500
7,500
4,000
11,000
10,000
14,000
43,000
7,000
13,000
14,000
21,000
16,000
4,500
15,000
12,000
14,000
5,500
25,000
20,000
85,500
16,000

Other
Transferred
Funds

Net
Change

+$50,168
+ 1,247
- 5,600
+ 5,293
+ 2,432
- 5,555
- 1,689
- 1,363
+
438
- 1,782
+
962
- 48,392
4,994
- 14,780
35
- 9,510
- 2,764
+
557
- 8,641
- 25,050
- 4,081

+$11,715
+ 6,170
- 43,352
- 2,322
+ 14,393
+ 51,318
- 30,052
+ 27,285
+ 35,776
+ 4,202
+ 24,529
+ 6,444
- 27,350
- 2,533
- 8,353
+ 22,029
- 1,935
+ 11,493
- 32,862
+ 12,095
- 39,808
+ 2,981
- 15,963
+ 12,813
+ 41,706
- 13,799
- 50,649
- 14,047
+ 1,074
- 10,464
- 2,327
- 26,574
- 2,475
+ 17,855
- 13,912
- 29,576
+ 21,721
+ 50,559
- 38,274
+ 3,049
- 15,606
- 2,810
+ 10,513
+ 1,974
- 44,010
- 35,957
+ 60,692
- 8,201
- 29,628
- 13,355
- 1,144
- 4,834

yj

-

2,978
2,569
8,979
394

- 16,751
7,690
- 1,646
- 2,021
- 25,375
- 9,624
+
116
9,289
- 8,980
- 6,436
- 3,538
803

+
+

17,246
3,933
11,526
5,202
8,460
7,113
16,146
16,309
1,421
7,796
2,690
21,775
19,094
9,267

Balance
$186,672
198,387
204,557
161,205
158,883
173,276
224,594
194,542
221,827
257,603
261,805
286,334
292,778
265,428
262,895
254,542
276,571
274,636
286,129
253,267
265,362
225,554
228,535
212,572
225,385
267,091
253,292
202,643
188,596
189,670
179,206
176,879
150,305
147,830
165,685
151,773
122,197
143,918
194,477
156,203
159,252
143,646
140,836
151,349
153,323
109,313
73,356
134,048
125,847
96,219
82,864
81,720
76,886

63

FEDERAL RESERVE BANK OF NEW YORK
Exhibit M

PERSONNEL AND ANNUAL SALARY RATE
Distribution by Departments, December 31, 1923
FUNCTION
Officers
Architectural Office
LAW FUNCTION
Legal Department
ACCOUNTS FUNCTION
Accounting Department
Methods and Supplies Department
ADMINISTRATION FUNCTION
Office Service Department
Personnel Service Department
Personnel Development Department
CASH AND CUSTODY FUNCTION
Cash Department
Custody Department
COLLECTION FUNCTION
Check Department
Collection Department
Clearance Arrangements
Northern New Jersey Clearing House
Association
FOREIGN RELATIONS FUNCTION
Foreign Department
LOAN FUNCTION
Credit Department.."
Discount Department
INVESTMENT FUNCTION
Bill Department
Securities Department
FISCAL AGENCY FUNCTION
Certificates of Indebtedness Dept
Government Bond Department
Government Loan Organization Depart'
ment
FEDERAL RESERVE AGENT'S
FUNCTION
Member Bank Relations Department.
Note Issues Department
Bank Examinations Department
Reports Department
AUDITING FUNCTION
Auditing Department

TOTAL.
BUFFALO BRANCH
Banking Departments
Fiscal Agency Department.
GRAND TOTAL..




Men

Women

40

7

2

Total
40
9

Salaries
(per annum
rates)
$489,500
37,333
7,180

2
81
27

71
9

152
36

256,570
69,390

231
16
9

110
48
21

341
64
30

460,180
102,040
41,300

211
66

233
10

444
76

694,570
155,730

253
164

392
127

645
291

755,420
378,070

1

1

4,100

2

2

4,670

11
26
29

13
40
54

22,220

14
25

2
26

14

2
40

6,500
75,920

16
68

4
52

20
120

43,460
217,800

41

86,530

34

70,610
97,810

4
2
8
21

1
1
2
30

5
3
10
51

20,410
6,640
26,820
96,480

62

10

72

159,040

1,419

1,187

2,606

$4,386,293

59
1

71
1

130
2

158,400
3,240

1,479

1,259

2,738

$4,547,933

64

NINTH ANNUAL REPORT

Exhibit N

VOLUME OF OPERATIONS IN MAJOR
DEPARTMENTS
NUMBER OF PIECES HANDLED

Bills discounted:
Applications
Notes discounted
Bills purchased for own account.
Currencyreceived and counted!
Coin received and counted. .. .
Checks handled^
Collection items handled:
U. S. Government coupons
paid
All other
U. S. securities,—issues, redemptions, and exchanges by
Fiscal Agency department. .
Telegraphic transfers of funds.
Envelopes received and dispatched

1922

1923

1921

17,418
72,177
75,701
477,256,770
816,128,440
128,395,578

14,178
60,715
56,474
412,346,942
801,276,919
118,589,173

21,461
149,868
46,836
411,514,500
671,984,790
104,518,732

17,683,617
2,176,964

22,684,751
1,741,432

26,125,705
1,429,924

8,246,772
283,712

7,030,043
236,368

8,368,113
214,480

7,673,335

6,760,529"

Not available

AMOUNTS HANDLED

Bills discounted
$17,951,843,277.03
Bills purchased for own account 1,177,647,249.00
Currency received and counted 3,006,283,134.00
Coin received and counted. .. .
125,506,209.25
65,518,030,484.52
Checks handled If
Collection items handled:
U. S. Government coupons
paid
337,343,799.40
All other
1,920,719,205.51
U. S. securities, — issues, redemptions, and exchanges by
Fiscal Agency department... 3,148,870,258.00
Telegraphic transfers of funds.. 28,031,499,790.62

$9,206,363,786.02 $30,768,989,922.52
799,813,048.73
871,432,743.43
2,610,697,300.00 3,192,093,258.00
99,118,197.00
76,684,281.00
62,280,122,007.00 36,101,511,000.00
336,468,175.00
1,519,894,267.00

6,449,624,670.62 7,206,610,549.95
25,126,089,841.00 18,160,300,000.00

*Buffalo not included.
fNot including the recount of about 300,000,000 notes.
^Excluding duplication between main bank and branch.




312,872,704.00
1,580,525,801.00