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EIGHTH ANNUAL REPORT
of the
FEDERAL RESERVE BANK
OF PHILADELPHIA
FOR THE YEAR ENDING
DECEMBER 31, 1922
EIGHTH ANNUAL REPORT
of the
FEDERAL RESERVE BANK
OF PHILADELPHIA
FOR THE YEAR ENDING
DECEMBER 31, 1922
PUBLISHED BY THE
FEDERAL RESERVE AGENT
OF THE
FEDERAL RESERVE BANK OF PHILADELPHIA
LETTER OF TRANSMITTAL
February 27, 1923.
Hon. Edmund Platt,
Acting Governor, Federal Reserve Board,
Washington, 1). C.
SIR: I have the honor to submit to
you herewith the eighth annual report of
the Federal Reserve Bank of Philadelphia,
covering the year 1922.
Very truly yours,
RICHARD L. AUSTIN
Chairman of the Board and
Federal Reserve Agent
Table of Contents
PART I—SUMMARY
PAGE
Introduction
Statement of condition
• Earnings and expenses and profit and loss
Discount rates and rates of return
Reserve position
Operations and services
7
S
10
11
12
13
PART II—OPERATIONS
Loan and discount operations:
Summary
Rediscounted paper
Purchased paper
United States securities
1 ij
17
17
. 1 8
Currency:
Federal reserve notes
Federal reserve bank notes
Currency department
Clearings and collections:
Transit operations .
.
Gold settlement fund
Collection department
Coupon department
Wire transfer operations
Securities department
IS
20
20
.
.
.
21
23
23
23
23
24
Fiscal agency operations:
Summary
Government deposits
Government checks
Savings securities
24
25
2(3
26
Internal organization:
Directors, officers and employees
26
PART III—BANKS OF THE DISTRICT
Number, capital, surplus, etc., by classes
Banking trends
Fiduciary powers for national banks
27
2S
28
Appendix—Statistical Exhibits
1. Earnings and expenses
.
2. Volume of discount and open market operations
3. Federal reserve notes issued and in actual circulation
.
.
.
.
.
30
.
31
32
4. Operations of Federal reserve clearing system
33
5. Principal assets and liabilities of reporting member banks in leading
cities of Third Federal Reserve District
34
6. Movement of principal asset and liability items of Federal Reserve
Bank of Philadelphia
Insert
Charts
D e b i t s to individual accounts
Deposits, F e d e r a l reserve n o t e circulation a n d cash reserves
8
.
.
.
12
Reserve ratio
13
Volume of work
15
M o v e m e n t of earning assets
16
Checks handled by transit d e p a r t m e n t
22
Reporting member banks
. 2 9
Federal Reserve Bank of Philadelphia
Directors and Officers
DIRECTORS
Class A
Class B
Joseph Wayne, Jr., Philadelphia, Pa.
Francis Douglas, Wilkes-Barre, Pa.
M. J. Murphy, New York, N. Y.
Alba B. Johnson, Rosemont, Pa.
Edwin S. Stuart, Philadelphia, Pa.
Charles K. Haddon, Camden, N. J.
Class C
Richard L. Austin, Philadelphia, Pa.
Henry B. Thompson, Wilmington, Del.
Charles C. Harrison, Philadelphia, Pa.
OFFICERS
Richard L. Austin,
George W. Norris,
Chairman and Federal Reserve Agent
Governor
Henry B. Thompson,
William H. Hutt,
Deputy Chairman
Deputy Governor
Arthur E. Post, Assistant Federal
Edwin S. Stuart,
Reserve Agent
Deputy Governor
Walter T. Grosscup, Assistant
William A. Dyer,
Federal Reserve Agent
Cashier and Secretary
C. A. Mcllhenny, Assistant Cashier
W. J. Davis, Assistant Cashier
J. M. Toy, Assistant Cashier
F. W. La Bold, Assistant Cashier
R. M. Miller, Jr., Assistant Cashier
S. R. Earl, Assistant Cashier
William G. McCreedy, Comptroller
Member of Federal Advisory Council
Levi L. Rue Philadelphia, Pa.
Eighth Annual Report of the
Federal Reserve Bank of Philadelphia
'ART from the fiscal agency duties performed for the
Government, the operations of the Federal Reserve Bank
of Philadelphia during 1922 were substantially larger in
physical volume than in the previous year.
The lull in business that occurred shortly before the beginning of
the year continued until April. Signs of a revival then appeared,
being most noticeable in the building trade. Improvement in almost all lines was reported month by month until August, when the
advance was checked somewhat by the coal and railway strikes, and
subsequently the unsatisfactory freight situation. Notwithstanding this, however, later months showed remarkable gains in all
branches of business, and operations proceeded at as high a rate
as labor and freight conditions would permit.
Reports from other parts of the country also testify to a most
substantial improvement in business during the year, thus disproving the many predictions that as long as the European situation
remained so unsatisfactory there could be no improvement in business in this country.
The chart on the next page, showing the amounts of debits to
individual accounts reported by banks which are members of ten
clearing houses in this district, traces in a general way the course of
business in dollars during the past two years. It will be noted that
debits in both years followed the same monthly trends, but that
the figures for 1922 were in excess of those of 1921 except in the
months of January and April.
The total loans and discounts of the member banks, continuing
to decline as in 1921, reached their lowest point early in the summer of 1922. As idle funds accumulated these banks diminished
their borrowings from the Federal Reserve Bank and increased
their holdjngs of securities. At the beginning of the year the loans
of this Bank to its members were'88.5 millions, but by August
this sum had been reduced to 35.6 millions. Its Federal reserve
notes in circulation likewise declined from 201 millions on January
1 to 176 millions in June.
Beginning in the late summer the needs of business made it necessary for business men to borrow more freely from their banks and
the reports of member banks in the principal cities showed increases
in commercial loans and discounts and curtailment in their pur-
A
EIGHTH
ANNUAL
REPORT,
FEDERAL
RESERVE
BANK
OF PHILADELPHIA
DEBITS TO INDIVIDUAL ACCOUNTS
THIRD
FEDERAL RESERVE
DISTRICT
MILLIONS OF DOLLARS
2,5OO
2,000
1920
1922 '
s
*
*.
1.5OO
'
1921 "*
.
'
" - .
1,000
5OO
O
Jan
Feb
Mar
Apr
May
Jun
July
Auci
Sep
Otf
Nov
Dec
chases of securities. In meeting this demand the member banks
had recourse to the Federal Reserve Bank for larger loans and an
increased amount of Federal reserve notes. By December 9 the
discounted bills held by this Bank had reached 62.7 millions, and on
December 22 the circulation of Federal reserve notes attained 229
millions. Declines late in December reduced these figures to 49.6
and 214 millions, respectively, at the end of the year.
Statement of condition
The statement of condition as of December 30 shows a reserve
ratio of 75 per cent as compared with 71.2 per cent at the end of
1921, and appreciable increases in reserves, Federal reserve note
circulation, and total deposits. Bills discounted declined, and increases in purchased bills and United States securities were not sufficient to prevent a decline in total earning assets. Comparison
with the middle of the year, when note circulation and discounts
were lower, is made possible by the insertion of the June 28 statement.
EIGHTH
ANNUAL
REPORT,
FEDERAL RESERVE
BANK OF
PHILADELPHIA
Statement
Federal Reserve Bank of Philadelphia
(000's omitted)
Dec. 30,
1922
June 28,
1922
Dec. 31,
1921
Gold and gold certificates
Gold settlement fund—F. R. Board.
Gold with foreign agencies
$19,523
30,599
$5,600
42,764
$1,950
61,776
$6,087
50,353
264
Total gold held by bank.
Gold with Federal reserve agent.
Gold redemption fund
$50,122
179,351
6,116
$48,364
153,315
7,996
$63,726
144,402
4,366
$56,701
138,791
8,902
$235,589 $209,675 $212,494
7,484
14,805
7,159
$204,397
993
Total reserves
$250,394 $217,159 $219,653
Bills discounted:
38,872
32,660
66,615
Secured by U. S. Government obligations. . . .
12,055
21,937
All other
10,738
18,201
15,895
Bills bought in open market
23,380
$205,390
$62,916 $104,447
. 23,564
2,173
$185,072
1,434
RESOURCES
Total gold reserves... .
Legal tender notes, silver, etc.
$72,990
24,440
Total bills on hand
United States bonds and notes
United States certificates of indebtedness:
One-year certificates (Pittman Act) . . .
All other
Municipal warrants
30,280
181
$95,785 $116,919
600
600
$216,967
500
700
46,296
218
1,300
67,749
358
$411,612 $359,865 $384,416
$492,261
Total earning assets
$102,180
Bank premises
640
5 per cent redemption fund against Federal reserve bank notes
58,032
Uncollected items
366
All other resources
LIABILITIES
Capital paid in
Surplus
Deposits:
Government
Member bank—reserve account.
All other
Total deposits
Federal reserve notes in actual circulation
Federal reserve bank notes in circulation—net
liability
Deferred availability items
All other liabilities
Total liabilities.
Ratio of total reserves to deposit* and Federal
reserve note liabilities combined
115,647
56,736
12,689
10,000
189
140
4,750
Total resources.
Dec. 31,
1920
5,500
3,805
700
45,114
507
$9,327
18,749
$8,991
17,945
17,945
$8,485
17,010
255
119,075
587
3,810
103,347
773
1,786
104,706
1,210
1,222
111,014
1,447
$119,917 $107,930 $107,702
214,067 177,870 200,724
$113,683
278,321
5,886
43,049
374
22,601
51,324
840
$411,612 $359,865 $384,416
$492,264
49,331
221
75.0%
5,133
40,582
1,414
76.0%
71.2%
"54.7%
"Net deposits prior to March 18, 1921, and total deposits beginning with that date.
9
EIGHTH
ANNUAL
REPORT,
FEDERAL
RESERVE
BANK
OF
PHILADELPHIA
Earnings and expenses
Total earnings for the year from all sources were $4,251,950, a
decrease of 47 per cent from 1921. This decline came not only from
the reduction of average daily earning assets from $160,990,000 in
1921 to $102,855,000 in 1922, but also from a reduction in the average rate of return from such earning assets from 4.94 to 4.11 per cent.
Earnings from discounted paper made up only 56 per cent of the
total as compared with 85 per cent in 1921.'
The Bank was called upon more heavily than in 1921 in connection with many of the services rendered to member banks and to
the public, but current expenses were reduced from $2,766,443 to
$2,053,919, or 26 per cent. A distribution of 1922 expenses is given
in the following table:
Loans, discounts, and purchases of securities
Currency and coin
>
Clearings and collections
Fiscal agency activities
( ustody of securities
Wire transfer and telegraphic services
Maintaining the accounts of the bank
Maintaining the general audit
Operation of banking house
'.
Official salaries and supervisory expenses
This bank's portion of Federal Reserve Board expenses
Federal reserve agent's department (including custody of collateral against Federal reserve notes, note issues, examination
of member banks, handling of applications for fiduciary powers,
examination of charter applications, preparation of monthly
report on business conditions, statistical and business informational services, maintenance of library)
Insurance
Miscellaneous (Federal Advisory Council, directors' fees, legal
services, traveling expenses, provision of personnel, telephone,
mail distribution, filing, guards, printing and supplies, etc.). . .
Total current expenses
$71,072.51
162.813.67
121.527.38
86,869.91
51,598.97
30.339.83
113,105.51
70.682.91
139.551.70
143,353.48
60,625.35
150,113.68
1)5.986.13
198.973.01
-$2,053,919.07
Current net earnings in 1922 were equal to 24 per cent of the
average capital stock as compared with 60 per cent in 1921, and
117 per cent in 1920. The profit and loss statement for the year
shows that, after the deduction of all expenses and charges, a margin
was left sufficient to pay the usual dividend of 6 per cent to the
stockholding banks, to pay $855,364 to the Federal government
as a franchise tax, and to add $839,960 to the surplus of the Bank.
*For monthly figures of earnings and expenses see appendix—exhibit 1.
10
EIGHTH
ANNUAL
REPORT,
FEDERAL
RESERVE
BANK
OF
PHILADELPHIA
This statement is here given:
Earnings
Current expenses
Current net earnings
Additions to current net earnings:
Amounts deducted from reserve for depreciation on United States bonds. . .
Assessment account expenses, Federal Reserve
Board, previously charged to profit and loss. .
All other
Total additions
Deductions from current net earnings:
Depreciation allowances on bank premises.. .
Reserves for depreciation on U. S. bonds
Furniture and equipment..
All other
Total deductions
Net deductions from current net earnings
Net earnings available for dividends, surplus and
franchise tax
1922
1921
1920
$4,251,950
2,053,919
$8,008,095
2,766,443
$11,848,551
2,176,274
$2,198,031
$5,241,652
$9,672,277
$67,732
$127,192
14,946
8,188
S 11,828
101,366
$82,678
$135,380
$146,194
$30,000
$646,620
105,396
$42,931
902
7,578
1,339
$43,833
$37,578
$753,355
$38,845*
$97,802*
$607,161
$2,236,876
$541,552
839,960 f
855,364f
Dividends paid
Transferred to surplus account... .
Franchise tax paid to U. S. Government
$2,236,876
$5,339,454
$9,065,116
$517,663
935,239
3,886,552
$496,679
8,201,775
363,662
$5,339,454
$9,065,116
*Net addition.
fBank also charged its surplus account and paid the Government $36,366 as an additional franchise tax for 1921.
Discount rates and rates of return
The discount rate of this Bank remained unchanged throughout
the year at 4 ^ P e r cent. However, rates for the purchase of acceptances in the open market varied. Comparative average rates
of return on the several classes of holdings were:
Bills discounted.
Purchased paper.
United States securities
Municipal warrants
Average
11
1922
1921
1920
4.50%
3.49 "
3.82 "
5.61"
5.49%
5.61"
2.22 "
5.48%
5.85 "
2.19"
4.11%
4.94%
5.01%
EIGHTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA
The higher rate realized on United States securities during the
past year is a result of the retirement of the 2 per cent Pittman Act
certificates of indebtedness.
Reserve position
A higher average reserve ratio was maintained by the Bank during 1922 than in the preceding year, as the charts show. These
charts only give weekly figures as of the close of business
Wednesday.1 From approximately 69 per cent in February, the
reserve ratio rose to a high point of 81 per cent in June and thereafter hovered around 75 per cent till near the close of the year.
The circulation of Federal reserve notes reached its lowest point in
the summer, but in December was higher than at the close of 1921.
Deposits, following an increase in the first four months of the year,
averaged around 110 millions for the remainder. And total reserves,
after falling to 203 millions in February, increased to 237 millions in
April, reacted to 209 millions in July, but rose to 250 millions in December.
DEPOSITS,F.R.N0TE CIRCULATION AND CASH RESERVES
FEDERAL
MILLIONS OF DOLLARS
3OOI
25O
RESERVE
BANK
OF
PHILADELPHIA
:
Federal Reserve Notes
in Circulation
200
Total R'eserves
ISO
Total Deposits
too
50
1921
1
For weekly'figures see table inserted in appendix.
12
1922
EIGHTH
ANNUAL
REPORT,
FEDERAL
RESERVE
BANK
OF
PHILADELPHIA
RESERVE RATIO
PERCENT
FEDERAL RESERVE
BANK
OF
PHILADELPHIA
1OO
9O
60
7O
6O A
r
L
5O
4O
3O
20
10
o
1921
1922
Operations and services
The operations performed by the principal departments of this
Bank are summarized in the table which follows. It will be observed that the rediscount facilities were not called upon so heavily
as in 1921, and that currency shipments were somewhat smaller,
but in many other ways the member banks availed themselves more
fully of the facilities offered by the Bank. If thefiscalagency duties
performed for the Government be excepted, it is clear, from the
figures showing the number of pieces handled, that the physical
volume of work performed by the banking departments as a whole
exceeded that of 1921. The transit, collection, and wire transfer
departments were particularly active. In the chart on page 15
comparison of the amount of work handled by nine departments is
made for the years 1920, 1921 and 1922.
A department for handling securities other than those which
serve as collateral for loans, was established in February. The
total business which passed through it up to the end of the year was
$369,403,000.
13
EIGHTH
ANNUAL REPORT,
Rediscounts for member banks:
Amount
Number of items handled
Number of banks accommodated
Acceptances purchased:
Amount
Number of items
Currency:
Receipts and shipments
Pieces counted
Coin:
Receipts and shipments
Pieces counted
Transit-checks handled:
Amount
Number
Collection items handled:
Amount
Number
Government checks handled:
Amount
Number
Wire transfers of funds :f
Amount
Number
United States coupons paid:
Amount
Number
Fiscal agency—United States securities issued, redeemed, canceled or exchanged:
Amount
Number of pieces
As of December 31:
Securities in safekeeping for member banks
State bank and trust company
members
Circulation of monthly report on
business and financial conditions.
FEDERAL
RESERVE
BANK
OF
PHILADELPHIA
Per cent of
change:
1922
compared
with 1921
1922
1921
$2,450,843,000
49,019
538
$3,872,367,000
71,054
509
-37%
$137,122,000
10,638
$99,176,000
5,914
$1,908,000,000
123,686,000
$1,920,320,000
104,741,000
+38"
+80"
— 6"
+ 18"
$49,459,000
183,600,000
—31"
+ 6"
$36,850,000*
142,057,000*
$13,576,545,000
55,215,000
$13,035,022,000
52,230,000
+ 4'
+ 6'
$452,257,000
344,000
$364,897,000
221,000
+24'
+56'
$303,678,000
1,898,000
$462,551,000
2,066,000
—34'
$2,991,481,000
37,000
$2,144,882,000
29,000
$63,852,000
7,614,000
$69,587,000
8,782,000
+39'
+27'
— 8'
—13'
$930,090,900
1,221,898
$1,874,427,850
3,701,498
$106,257,000
$63,263,000
+68'
58
51
+14'
12,850
9,800
+31'
—50
—67
*Ten months, March 1 to December 31, 1921.
fNot inclusive of transfers for account of 5 per cent redemption fund of national banks.
14
EIGHTH
ANNUAL
REPORT,
FEDERAL
RESERVE
BANK
OF PHILADELPHIA
VOLUME OF WORK
FEDERAL RESERVE
DISCOUNTS FOR
MEMBER BANKS
(number of iferos)
THOUSANDS
THOUSANDS
6O
BANK
OF PHILADELPHIA
PURCHASED B I L L S
CURRENCY COUNTED
C n u m b e r of i t e m s )
( ourobep of pieces)
J
o n
O
1920
1921
1922
1920
CHECKS HANDLED
BY TRANSIT DEP'T.
(otbep ibon government)
1920
1921 1922
1922
COLLECTION
ITEMS RECEIVED
( number)
GOVERNMENT
CHECKS HANDLED
(number)
MILLIONS
1921
THOUSANDS
3OO
2OO
1OO
1920
1921
1922
1920
W I R E TRANSFER
MESSAGES HANDLED
(nunobcp)
THOUSANDS
MILLIONS
1921
1922
UNITED STATES
COUPONS P A I D
(ourobep)
1920
1921
1922
U.S. SECURITIES ISSUED,
EXCHANGED, REDEEMED
AMD CANCELLED
MILLIONS
1O
1920
1921
1922
1920
15
1921
1922
1920
1921
1922
EIGHTH
ANNUAL
REPORT,
FEDERAL
RESERVE
BANK
OF
PHILADELPHIA
LOAN AND DISCOUNT OPERATIONS
Rediscounts and purchases of bills, United States securities, and
municipal warrants during 1922 amounted to $2,750,519,000, a decrease of 34 per cent from 1921 and of 57 per cent from 1920. Member banks borrowed less and smaller purchases of United States
securities were made than in 1921, but purchases of bills largely
increased1. The average daily holdings of earning assets decreased
from $160,990,000 to $102,855,000 or 36 per cent. Statistics for
1921 and 1922 follow:
Rediscounts or purchases
000's omitted
in dollar figures
1921
Bills discounted.... $3,877,367*
99,175*
Bills bought
197,721
U. S. securities
140
Municipal warrants.
Totals
$4,174,403*
Average daily holdings
1922
Change
1921
1922
$2,450,843
137,122
162,452
102
-37%
+38"
—18"
—27"
$124,878
9,159
26,946
7
$53,181
20,369
29,259
46
-
57%
$2,750,519
-34%
$160,990
$102,855
-
36%
Change
+122"
+ 9"
+557 "
*Bills discounted for, and acceptances bought from, other Federal reserve banks included.
MOVEMENT OF EARNING ASSETS
FEDERAL
RESERVE
BANK
OF
PHILADELPHIA
MILLIONS OF DOLLARS
22O
2OO
18O
_—J.—^_/_^
\f
\r\?f*\
Total Earning Assets
160
140
120
1OO
SO
6O
4O
2O
O
1921
1
1922
For monthly figures see appendix—exhibit 2.
16
EIGHTH
ANNUAL
REPORT,
FEDERAL
RESERVE
BANK
OF
PHILADELPHIA
Discounts declined to August, thereafter rose to December 9 and
again declined to the end of the year1. The smaller average holdings
of this paper were offset in part by increases in purchased paper and
securities.
Rediscounted paper
Bills discounted amounted to $2,450,843,000 in 1922, of which
93.1 per cent was discounted for member banks in Pennsylvania,
6.2 per cent for those in New Jersey, and 0.7 per cent for Delaware
banks. In amount, discounts decreased 37 per cent from 1921, and
the number of items handled declined from 71,054 to 49,019, or
31 per cent. However, the number of banks which received accommodation increased from 509 to 538.
Member banks' collateral notes secured by government obligations still made up the bulk of the paper under rediscount, but
customers' paper so secured declined greatly in amount. Agricultural paper and acceptances were offered only in small quantity.
Comparative statistics are given in the table:
Rediscounts for member banks
during year
OOO's omitted
in dollar figures
1921
Secured by government obligations.. $2,708,180
514
Bankers' acceptances
1,521
Trade acceptances. .
Agricultural and live
stock
3,189
All other (commer1,158,963
cial)
Totals..
$3,872,367
Holdings at end
of year
1922
Increase
or
decrease
1921
1922
Increase
or
decrease
$1,771,245
—34%
$66,614
$38,872
—42%
767
—49"
116
114
— 2"
3,508
+10"
719
489
—32"
675,323
—41"
21,103
10,135
—52"
$2,450,843
VJOf
$88,552
$49,610
44o-
Purchased paper
Purchases of acceptances in 1922 were $137,121,675, the largest
yearly total in the history of this Bank. This figure was 38 per cent
in excess of 1921, but was more closely approached in 1918 when
$120,008,000 was purchased. $178,640 of foreign trade acceptances
were included in the 1922 total, the remainder being bankers' acceptances. These bankers' acceptances were divided according to
the transactions involved as follows: Exports, 29.6 per cent; imports, 43.4 per cent; domestic shipments, 22.2 per cent; storage,
1.6 per cent; dollar exchange, 3.2 per cent.
1
For weekly figures see appendix—inserted table.
17
EIGHTH
ANNUAL REPORT,
FEDERAL
RESERVE
BANK
OF
PHILADELPHIA
Purchases in open market during year
Holdings at
end of year
1922
1921
1920
1919
$23,380,000
15,895,000
12,689,000
5,177,000
Average
maturity
Average
rate
61.59 days
44.81 "
59.09 "
57.00 "
Amount
$137,122,000
92,353,000
41,232,000
14,048,000
3.53%
5.34 "
5.89 "
4.38 "
Purchases
from other
Federal reserve banks
$6,823,000
35,148,000
United States securities
Although purchases of United States securities, at $162,451,650,
were 18 per cent below the total for 1921, the average holdings during the past year were larger. Retirements by the Treasury reduced
the amount of Pittman Act certificates from $10,000,000 at the
beginning of the year to zero at the end, but this decrease was more
than offset by larger holdings of other certificates and by substantial
purchases of Treasury notes. A comparison of the holdings of the
different kinds of Government securities as of December 31 is
given herewith:
United States bonds:
2% Panamas of 1936-38
3% conversion bonds of 1946-47
3>2% Liberty loan
4% Liberty loan
4/4% Liberty loan
Total United States bonds
United States Victory notes
United States Treasury notes
United States Treasury bonds
Certificates of indebtedness:
2% to secure circulation of Federal reserve
bank notes
All other
Total United States securities
1922
1921
1920
$100
519,200 !
48,100
$100
519,200
48,100
$100
549,200
48,100
863.700
836,400
836,400
$1,461,100
$1,133,800
$1,433,800
739,000
22,640,600
338,600
4,750,000
10.000.000
189,000
30.280,000
181,500
$29,190,300
$12,361,800
$31,895,300
CURRENCY
Federal reserve notes
The circulation of Federal reserve notes declined seasonally during the first four weeks of the year, and then rose to 200 millions on
April 17. Shortly thereafter the circulation declined to a level of ap
18
EIGHTH
ANNUAL
REPORT,
FEDERAL
RESERVE
BANK
OF PHILADELPHIA
proximately 180 millions and continued to hover around that
figure until the last half of September. Again the circulation turned
upward, reflecting in its rise to 229 millions on December 22, the
usual seasonal increase in the demand for notes, better general business, and the resumption of coal mining. The coal strike played no
little part in influencing the circulation in this district. To it largely
were due the falling off late in April and the rapid gains in the early
fall. A comparison of the percentages of each denomination issued
to the total amount issued to the Bank in 1922 and 1921 follows:
5's..
10's
20"s
50's
100's
500's
1000's
1922
1921
27.0%
30.4 "
30.4 "
8.3"
3.3 "
0.1"
0.5"
24.8%
31.6"
26.8"
12.5 "
3.1 "
0.3"
0.9"
100.0%
100.0%
Total issues of notes to the Bank and redemptions were much
below those of 1921, except in the last quarter of the year1. Nevertheless circulation at the end of the year was higher than at the beginning. The chart on page 12 shows the trend of circulation by
weeks during the past two years. Quarterly figures of redemptions
and issues are given in the table below:
000"s omitted
Notes
issued
Notes
redeemed
At end of quarter
Outstanding
Circulation
1921
1st quarter
2nd quarter
3rd quarter
4th quarter
$40,490
49,320
49,200
44,400
$66,961
72,505
59,898
52,474
$264,827
241,643
230,944
222,870
$239,750
226,454
209,063
200,724
35,200
31,040
31,600
94,020
51,930
32,794
28,513
57,776
206,140
204,387
207,474
243,718
192,951
181,601
186,999
214,067
1922
1st quarter
2nd quarter
3rd quarter
4th quarter
A statement of the Federal reserve agent's account, with comparative figures for 1921 and 1920, is here given:
a
For monthly figures see appendix—exhibit 3.
19
EIGHTH
ANNUAL
REPORT,
FEDERAL
RESERVE
BANK
OF
PHILADELPHIA
RESOURCES
Dec. 30, 1922
Dec. 31, 1921
Dec. 31, 1920
Federal reserve notes on hand
Federal reserve notes outstanding
Collateral security held:
Gold certificates on hand
Gold in gold redemption fund
Gold with Federal Reserve Board. ..
Eligible paper
$48,920,000
243,717,975
$50,400,000
222,870,115
$25,580,000
291,298,605
7,000,000
14,461,215
157,889,260
69,325,115
14,013,355
130,389,260
101,435,017
17,401,845
121,389,260
162,024,571
$541,313,565
$519,107,747
$617,694,281
Federal reserve notes received from
comptroller (gross)
$1,060,280,000
Less returned to comptroller for destruction
767,642,025
$881,360,000
$680,580,000
608,089,885
363,701,395
$292,637,975
$273,270,115
$316,878,605
$179,350,475
69,325,115
$144,402,615
101,435,017
$138,791,105
162,024,571
$541,313,565
$519,107,747
$617,694,281
Total resources
LIABILITIES
Received from comptroller (net)
Collateral pledged by Bank against
outstanding notes:
Gold and gold certificates
Eligible paper
Total liabilities
Federal reserve bank notes
As the Treasury increased its purchases of silver and the coinage
of silver dollars, the Pittman Act certificates of indebtedness securing the bank notes of this Bank were retired, and at the end of the
year none of these was held, against $10,000,000 at the beginning.
The issue of bank notes was stopped and the December 30 statement of the Bank shows no liability for them as compared with
$5,886,000, in circulation at the beginning of the year. The retirement of the few notes still in the hands of the public has been provided for by the deposit of funds with the Treasury.
Currency department
Total receipts from and payments of currency and coin to banks
in this district and other reserve banks are given in the following
table:
Currency:
Payments
Receipts
Coin:
Payments
Receipts
1921
1975,320,362
932,706,837
$953,487,603
966,831,871
25,030,423
24.428.241
*Figures for last ten months of year.
1922
20
18,531,588"
18,319,444*
EIGHTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA
The total amount of currency counted decreased from $766,821,557
in 1921 to $726,381,686, in 1922, or 5 per cent, but the number of
pieces increased from 104,743,901 to 123,685,503 or 18 per cent,
owing to an increase in the number of one- and two-dollar bills received. In 1922 also, 183,600,197 pieces of coin amounting to
$23,544,568 were counted.
CLEARINGS AND COLLECTIONS
Transit department operations
Larger business transactions are reflected in an increase in the
number and amount in dollars of the checks other than government checks handled by the transit department during 1922. In
amount the increase was from $13,035,022,000 to $13,576,545,000
or 4 per cent, and in number a gain of 6 per cent was recorded1.
The average daily number of checks handled during 1922 was
184,000, but on one day—November 9, 287,000 checks passed
through the department. The average size of'the check in 1922
was $246, against $250 in 1921 and $344 in 1920.
Total figures for the past four years follow:
1922.
1921.
1920.
1919.
Amount
Number
$13,576,545,320
13,035,021,701
16,327,199,973
13,843,744,363
55,214,764
52,230,022
47,298,471
34,886,768
Monthly figures are shown in the chart on the next page. In interpreting this chart the effect of a new routing of certain checks must
be allowed for. In June the large city and country banks were
requested to forward items payable outside of this district direct to
other reserve banks for the credit of this Bank.
The par collection system now has been in operation more than
seven years, long enough for the member banks to have formed an
opinion as to it. It is pleasant to state that in reply to inquiries
made of 68 banks outside of Philadelphia and in the city, with but
two or three exceptions all the banks stated that they were highly
pleased with the service. They cited the prompt collection of checks
and the great reduction in the amount of money absorbed in "float,"
and felt that the system is sound in principle, conforms to good
business practice, and is far superior to the old system.
1
Monthly figures, including government cheeks given in appendix—exhibit 4.
21
EIGHTH
ANNUAL
REPORT,
FEDERAL
RESERVE
BANK
OF
PHILADELPHIA
CHECKS HANDLED BY TRANSIT DEPARTMENT
FEDERAL
MILLIONS
OF
BANK
.•.•
\
\
\
PHILADELPHIA
1920'
^S
*.
\
OF
...
AMOUNT
DOLLARS
1,200
RESERVE
1922
'
S;/
1921
cry)
ZOO
0
JGI?
MILLIONS
Feb
Mar
Apr
May
Juo
July
Aucj
Sep
Od
Nov
Dec
NUMBER
A
R
•MM!
A
T .
1921 ^
1920*
•
••
-x
9
\
0
Jao
heb
Man
App
May
JUD
22
July
Aucj
Sep
Od
Nov
Dec
EIGHTH
ANNUAL
REPORT,
FEDERAL
RESERVE
BANK
OF
PHILADELPHIA
Gold settlement fund
Clearings and transfers through the gold settlement fund resulted
in a net gain of $24,444,000 in 1922 as compared with gains of
$11,129,000 in 1921 and $84,775,000 in 1920. Total payments to
other Federal reserve banks in 1922 were $7,109,692,000 and
receipts—$7,134,136,000.
Collection department
The collection department has had a very active year. In all,
343,789 items, amounting to $452,257,338, were received for collection in 1922 as compared with 221,238 items totaling $364,896,559 in 1921. This shows an increase of 55 per cent in number
and of 24 per cent in the amount of items so received. The number
of items returned unpaid this year was 15.9 per cent of the total
number received as compared with 17.7 per cent in 1921, and 16.4
per cent in 1920.
Coupon department
The coupon department reports a decline in the amount of United
States coupons paid from $69,587,295 in 1921 to $63,851,905 in
1922, and in number from 8,781,836 to 7,613,947. In more detail
these figures compared as follows:
1921
1922
Number
Liberty bonds and Victory notes...
Certificates of indebtedness
All other
Totals
Amount
Number
Amount
7,359,453
60,301
194,193
$51,557,158
4,155,866
8,138,881
8,641,093
117,599
23,144
$59,462,517
9,304,749
820,029
7,613,947
$63,851,905
8,781,836
$69,587,295
Wire transfer operations
Member banks made even greater use than in 1921 of the facilities offered by this Bank for the transfer of funds over the leased
wire. In 1921, 28,732 messages were handled transferring $2,144,881,556, whereas in the past year 36,729 messages transferring
$2,991,481,375 were handled. Figures in detail follow:
23
EIGHTH
ANNUAL REPORT,
FEDERAL
RESERVE
BANK
OF PHILADELPHIA
1921
1922
Number
Amount
Number
Amount
Interdistrict transfers:
Incoming
Outgoing
Intradistrict transfers
13,820
17,159
5,750
$1,694,170,992
1,136,378,658
160,931,725
11,024
13,366
4,342
$1,181,385,061
847,702,308
115,794,187
Totals..
36,729
$2,991,481,375
28,732
$2,144,881,556
The wire transfer service is concerned directly with the par collection system in that it makes it possible to restore without delay
balances that may have been depleted by heavy sendings of checks.
This service in conjunction with the gold settlement fund enables
a bank in any part of the country to avail itself almost instantly of
balances that it may have in any other part. The greater promptness in the transfer of funds reduces the amount of money tied up in
"float" and makes bank statements more reflective of true condition.
SECURITIES DEPARTMENT
This department was organized early in 1922 to handle securities
left in the custody of the Bank by the member banks, and those
which were deposited as collateral by member and non-member
banks to secure war loan deposit accounts, check clearing, and
currency deposits. It acts for the member banks in the purchase
and sale of securities by conveying orders for purchases and sales,
making payment for them and receiving, holding, or delivering such
securities.
The total business handled from February 15 to the end of the
year was $369,402,932, distributed as follows: Securities purchased,
$46,943,110; sales, $44,429,053; receipts, $132,533,688; deliveries,
$140,995,356; exchanges, $4,501,725.
FISCAL AGENCY OPERATIONS
Operations of the fiscal agency departments during 1922 declined
materially from 1921, but the closing weeks of the year were exceptionally busy ones as a result of the redemption and refunding of
the Victory notes and preparations for the redemption of the 1918
series of war savings securities at the beginning of 1923.
Seven issues of certificates of indebtedness, five issues of Treasury
notes, and one issue of long-term bonds, were made in the course of
the year. The response of the banks and the public was gratifying,
24
EIGHTH
ANNUAL
REPORT,
FEDERAL
RESERVE
BANK
OF
PHILADELPHIA
the subscriptions totaling $818,291,100 and the allotments—$328,165,900. Even so, these figures were not equal to 1921. Details
for 1922, with comparisons of 1921 totals, follow:
Loan certificates of indebtedness
Tax certificates of indebtedness.
Treasury notes
Treasury bonds
Totals, 1922
Totals, 1921
Subscriptions
Allotments
$26,261,000
252,335,000
428,362,000
111,333,100
$10,590,000
69,825,500
193,721,600
54,028.800
$818,291,100
1,330,841,800
$328,165,900
352,400,200
It is of interest to see to what extent securities allotted in this
district were redeemed here. Certificates of indebtedness maturing
in 1921 to the amount of $235,848,500 were allotted in this district,
and redemptions of these issues in that year were $193,560,000, or
82 per cent of the allotment. Issues maturing in 1922 totaled
$226,514,000, and redemptions of these issues were $110,973,500,
or 49 per cent.
The total of United States securities issued, redeemed, canceled,
or exchanged in 1922 was 1,221,878 pieces amounting to $930,090,900
against 3,701,498 pieces totaling $1,874,427,850 in 1921. Certain
of the details of operation are given in the table below:
1921
1922
Number
of
pieces
Liberty bonds and Victory notes:
Conversions
Exchanges
Transfers of ownership
Purchases for United States Treasury...
Received in payment of inheritance
taxes.. ..
Certificates of indebtedness redeemed...
Victory notes redeemed
Certificates of indebtedness, Treasury
notes and bonds delivered to subscribers on allotment
Amount
Number
of
pieces
Amount
13,941
803,258
5,590
25,101
71,901
$1,978,300
336,643,250 3,405,886
8,376
6,599,750
13,415
33,763,900
$11,148,350
617,230,300
5,144,750
28,160,700
508
39,615
210,939
575,900
112,257,000
67,377,300
1,495
71,817
1,677,600
193,807,000
148,535
405,235,300
Government deposits
The number of depositories decreased from 689 at the beginning
of 1922 to 675 at the end. The average amount of Government
EIGHTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA
deposits was somewhat lower, but comparison of end of the year
figures shows a small increase:
December 31, 1922.
December 31, 1921.
Deposits
Collateral
pledged
$33,965,000
31,490,000
$48,555,000
55,095,000
Government checks
Government checks to the number of 1,897,773 and totaling
$303,677,540 were handled during 1922, a decrease of 8 per cent in
number and of 34 per cent in amount from 1921.
Savings securities
In the past year Treasury savings certificates maturing in five
years and yielding interest at 4 per cent compounded semi-annually
have been issued in denominations of $25, $100, and $1,000 (maturity
value). More than $10,000,000 were sold in the course of the year,
as compared with sales of savings securities of $1,552,876 in 1921.
Adequate facilities are being prepared for the redemption of war
savings stamps of the series of 1918, which come due January 1, 1923.
INTERNAL ORGANIZATION
Board of directors
Class
Group 1.
A . . . Group 2.
Group 3.
Group 1.
Group 2.
Group 3.
Name
Residence
Joseph Wayne, Jr., president Girard
National Bank, Philadelphia, Pa.
Francis Douglas, cashier, First National Bank, Wilkes-Barre, Pa.
M. J. Murphy, c/o A. B. Leach &
Co., Bankers, New York, N. Y.
Term expires
Philadelphia, Pa
Dec. 31,1923
Wilkes-Barre, Pa.
Dec. 31,1924
Clarks Green, Pa.
Dec. 31,1922
Alba B. Johnson, vice-president,
Southwark Foundry & Machine
Co., Philadelphia, Pa
Edwin S. Stuart, merchant, Philadelphia, Pa.
Charles K. Haddon, Victor Talking
Machine Co., Camden, N. J.
Rosemont, Pa.
Dec. 31,1922
Philadelphia, Pa.
Dec. 31,1923
Camden, N. J.
Dec. 31,1924
Richard L. Austin
Henry B. Thompson, president, U.
S. Finishing Co., New York, N. Y.
Charles C. Harrison
Philadelphia, Pa.
Wilmington, Del.
Dec. 31,1923
Dec. 31,1922
Philadelphia, Pa.
Dec. 31,1924
26
EIGHTH
ANNUAL
REPORT,
FEDERAL
RESERVE
BANK
OF
PHILADELPHIA
Prior to the end of his term Mr. M. J. Murphy, a class A director
representing group 3, announced his intention of retiring from the
board and notified the members of the group that he would decline
renomination. Mr. John C. Cosgrove, of Johnstown, Pa., a coal
operator and director of the First National Bank, of Hastings, Pa.,
was elected a director for a term of three years beginning January 1,
1923, as the representative of group 3 banks in class A. Mr. Alba
B. Johnson was unanimously selected by group 1 banks as a class B
director to succeed himself for a like term. Appointments by the
Federal Reserve Board continue Mr. Henry B. Thompson as a
class C director for a term of three years beginning January 1, 1923.
Mr. Richard L. Austin was reappointed chairman of the board and
Federal reserve agent, and Mr. Thompson as deputy chairman for
terms of one year each. Mr. Levi L. Rue was again selected as the
representative from the Third District on the Federal Advisory
Council.
Mr. William G. McCreedy who had been acting comptroller was
made comptroller on January 4.
The number of officers remains unchanged at the end of 1922 at
14, but the number of employees was reduced from 883 at the end
of 1921 to 859 at the close of this year. In the banking departments
the reduction was from 741 to G83; the Federal reserve agent's department increased from 51 to 53, and the fiscal agency department from 58 to 90; the auditing department remained unchanged
at 33. The increase in the fiscal agency department was made
necessary by the work incident to the redemption of war saving
stamps, and will not continue after that work is completed.
BANKS OF THE DISTRICT
The number of banking institutions in the Third Federal Reserve
District increased from 1,189 at the beginning of 1922 to 1,215 at
the end. Eight state banking institutions were admitted to membership during the year but the net gain was seven, as one state
bank member was converted into a national bank during the year.
The distribution of banks in this district follows:
-27
EIGHTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA
Banks on par list
Noncheck
state
banks
Grand
totals
National
banks
State
bank
members
Nonmember
state
banks
Totals
561
80
18
45
9
4
405
48
33
1,011
137
55
7
3
2
1,018
140
57
Totals, Dec. 31,1922....
659
58
486
1,203
12
1,215
Totals, Dec. 31, 1921....
653
51
473
1,177
12
1,189
Pennsylvania.
New Jersey
Delaware
Figures collected from all banks in the district as of June 30 show
an increase in total resources from $3,323,976,000 in 1921 to $3,408,737,000 in 1922, and in combined capital and surplus from
$450,605,000 to $476,720,000. The total resources of the member
banks were approximately 63 per cent of the total for all banks on
June 30, 1922.
The reports of member banks in Philadelphia, Camden, Scranton
and Wilmington may be taken as indicative, in general, of banking
trends in this district. Three of the items reported upon—loans and
discounts, investments, and total deposits, are shown by weeks for
1921 and 1922 in the chart on the next page1.
The repayment of debts substantially reduced the volume of
commercial loans and discounts during 1921 and the first seven
months of the past year. In the late summer, however, demands
from the business interests were larger and the accommodation
extended by these banks was increased. The liquidation of loans
was accompanied by an accumulation of funds upon deposit and up
to the fall of 1922 the banks were active in their purchases of securities as an outlet for these funds. At the end of 1922 total loans
and discounts stood at $592,418,000, higher by 15 millions than the
total at the end of 1921. Loans and discounts secured by United
States securities declined, those otherwise secured largely increased,
and commercial loans were practically the same at the end as at
the beginning of the year. Investments increased from $238,073,000
to $294,139,000, and deposits from $684,735,000 to $786,915,000.
Fiduciary powers for national banks
At the close of 1921, 43 national banks in this district had been
granted partial fiduciary powers and 88 had been authorized to
as of end of each month given in appendix—exhibit 5.
28
EIGHTH
ANNUAL
REPORT,
FEDERAL
RESERVE
BANK
OF PHILADELPHIA
exercise all of those permitted under the Federal Reserve Act.
During 1922 twenty-three other banks were added to the list, six
of which were granted only partial powers. Of the banks previously authorized, one possessing partial powers was admitted to
full powers, and four possessing full powers surrendered them
owing to conversion or liquidation. At the end of 1922, 49 banks
had partial and 101 had full powers, distributed by states as
follows:
Full powers
40
6
3
21
3
117
27
6
49
101
150
Pennsylvania...
New Jersey...
Delaware
Totals
< i
REPORTING MEMBER BANKS
THIRD
FEDERAL
RESERVE DISTRICT
MILLIONS OF DOLLARS
6OO
Total Deposits
.../' V
Total Loans and Discount?
4OO
1OO
1922
1921
Totals
Partial powers
29
Exhibit 1
Earnings and expenses V)12
EARNINGS
From
investments
January
February
Deficient reserve penalties
Total
Sundry
earnings
Total
earnings
current
expenses
(lurrent
net
earnings
Annual
rate of
net
earnings
$383,5:56.20
$1,381.11
1557.69
$385,175.30
$190,310.17
si 95.161.83
26.3' ,
377,185.15
881.50
106.99
378,476.94
167,109.31
211,067.63
31.3"
378,594.15
1,066.58
378.20
380,038.9:5
186,232.95
193.805.98
25.8"
319,195.01
938,06
332.69
350,765.79
177,995.39
172,770.10
23.6"
347,184.53
1,031.82
375.16
318,591.51
186.811.93
161,749.58
21.3"
w June
321,327.81
1,171.62
2,062.87
321,862.33
168,632.90
156,229.13
21.1 "
July
329.171.31
1,057.38
372.20
330,603.92
162,777.27
167,826.65
22.0"
March
April
May
August
335.637.73
1.160.77
108.19
337.506.69
167.881.58
169,625.11
21.9"
September
325,331.91
1,218.98
381.36
326,965.25
1 15,763.30
181.201.95
21.0"
October
331,035.02
1,125.16
935.71
336.096.22
155,907.68
180,188.51
23.1 "
November
351,597.70
1,290.80
317.60 "
353,236.10
165,751.53
187,181.57
21.6"
December
395,01 1.87
1,118.76
2.861.83
399.328.16
178,111.76
220,916.70
28.0"
Totals, 1922. ..
$1,228,117.78
81 1,109.1 1
$9,123.52
$1,251,950.11
$2,053,919.07
$2,198,031.37
24.3%
Totals, 1921 . . . .
$7,961,580.98
$31,112.81
si 2,071.03
$8,008,091.85
S2.766.112.67
$5,211,652.18
6o.o';
$11,736,470.00
$69,150.00
$ 12,931.00
$11,818,551.00
$2,176,271.00
$9,672,277.00
116.8%
$8,550,650.00
$25,673.00
$33,555.00
$8,609,879.00
$1,775,181,00
$6,831,695.00
89.0%
Totals, 1920
Totals, 1919 . .. .
EIGHTH
ANNUAL
REPORT,
FEDERAL
RESERVE
BANK
OF PHILADELPHIA
Exhibit 2
Volume of discount and open market operations
(000's omitted)
PURCHASED
PAPER
DISCOUNTED PAPER
Month
Total
AgriculSecured by
U. S. Govern- Bankers' Trade tural and
livement obli- accept- acceptstock
ances
ances
gations
paper
January... . $246,117
February... 235,473
March
233,034
April
180,663
May
181,307
186,639
150,317
L64.513
166,726
204,683
251.390
246,951
$193,021
174,919
176,673
111,902
115.424
139,254
108.110
128.593
117.219
131,478
156,895
157,397
$118
51
12
52
105
41
62
31
63
84
76
42
$415
261
333
376
342
302
280
119
154
273
Total, 1922. 2,450,843
1,771,215
Total, 1921. 3,872,367
2,708,180
Total, 1920. 5,820,258
4,415,154
June
July
August
September..
October....
November..
December. .
Month
318
$8,923
14.610
11,255
7,739
11,348
14,165
21,678
12.999
2,772
12,311
6,611
9,681
$8,075
14,272
13,777
7,283
10,993
13,627
21,468
12.127
2.752
12,191
6,336
9,331
767
3.508
675,323
137.122
132,532
511
1,521
3,189
1,158,963
92,353
80,373
4,129
4,790
11,232
38,352
UNITED STATES
SECURITIES
PURCHASED
Dollar Trade
acceptexchange ances
Bonds
and
notes
Certificates of
indebtedness
10,014
3,611
76
7,163
1,753
10.626
6
2,395
1,037
1,051
131
748
$230
16,161
2,117
164
10,062
605
4,370
3,890
887
85,253
38,680
$804
338
478
456
355
505
86
550
20
150
275
350
$11
Total, 1922
4,367
223
Total, 1921
11,980
Total, 1920
2,880
33
124
2°
Bankers'
acceptances
Total
$52,533
60,209
55,986
38,333
38,436
17,042
41,565
35,740
49,290
72,818
94,147
89,194
PURCHASED
PAPER
January. . .
February..
March. . . .
April
May
June
July
August....
September.
October. . .
November.
December .
All
other
1,395,885
MUNICIPAL
WARRANTS
TOTAL DISCOUNT
AND OPEN MARKET
OPERATIONS
1922
1921
1920
$51
51
$265,135 $383,218 $656,620
254,008 328,233 571,917
544,619
263,529 435,206
596,705
197,712 379,880
461,997
197,572 400,274
525,833
221,192 431.835
551,630
172,636 284,217
181,277 316,031 558,633
429.038
171,425 280,490
407,303
218,965 294,490
258,135 288,992
502,465
412.162
312,633 339,714
123,772
102
2,750,519
11,622
186,098
140
49
357,383
31
4,162,580
. ...
6.218 922
Exhibit 3
Federal reserve notes issued and in actual circulation
1921
Outstanding
at beginning
of month
Issued
during
month
Fit
notes
received
Redeemed
Outstanding
at end of
month
Held by bank
at end of
month
In actual circulation
at end of the month
1922
1921
$20,293,200
$201,816,915
$20,649,200
$181,167,715
$259,053,585
17,200,000
12,896,950
206,119,965
17,052,540
189,067,425
259,162,180
206,119,965
13,800,000
13,779,500
206,140,465
13,189,690
192,950,775
239,749,520
April
206,140,465
17,740,000
11,451,700
212,428,765
23,781,905
188,616,860
235,555,585
May
212,428,765
4,500,000
11,489,400
205,439,365
23,921,525
181,517,840
230,644,670
June
205,439,365
8,800,000
9,852,500
201,386,865
22,785,380
181,601,485
226,453,965
9,121,900
201,264,965
27,009,795
177,255,170
221,015,690
200,394,165
22,165,418
178,228,747
213,764,635
186,999,160
209,062,515
January
$222,870,115
$1,200,000
February
201,816,915
March
$1,960,000
to
w
July
August
204,386,865
204,264,965
14,000,000
2,400,000
5,000,000
1,500,000
4,770,800
September
200,394,165
15,200,000
8,120,200
207,173,965
20,474,805
October
207,473,965
29,400,000
20,549,900
216,324,065
18,027,795
198,296,270
201,812,125
November
216,324,065
32,660,000
20,089,800
228,894,265
20,132,625
208,761,640
197,873,035
December
228,891,265
31,960,000
17,136,290
243,717,975
29,650,995
214,066,980
200,723,910
Exhibit 4
Operations of Federal reserve clearing system
Figures include cash items only
(000's omitted in all figures)
MONTH
Items drawn
on
banks
in own district
Number
January
February
g§ March
April
May
June
July
August
September
October
November
Totals, 1921
Totals, 1920
Number
Amount
Number
Amount
TOTAL*
Number
Amount
$914,606
811,961
998,084
927,350
985,879
1,042,364
984,918
1,004,834
1,076,259
1,187,191
1,113,954
1,239,714
682
591
722
670
672
652
430
414
408
466
449
512
$111,208
102,657
125,032
116,389
130,800
135,173
. 90,603
91,113
92,331
101,951
93,987
98,188
124
133
152
161
176
156
138
149
173
189
172
175
$25,381
6,003
24,458
28,478
25,617
30,972
26,559
28,215
25,431
26,821
24,528
31,214
4,584
4,034
4,986
4,667
4,968
5,066
4,599
4,634
4,603
4,935
4,756
5,281
$1,051,195
920,621
1,147,574
1,072,217
1,142,296
1,208,509
1,102,080
1,124,162
1,194,021
1,315,963
1,232,469
1,369,116
48,547
$12,287,114
6,668
1,289,432
1,898
$303,677
57,113
$13,880,223
43,878
$11,229,057
8,352
$1,805,965
2,066
$462,551
54,296
$13,497,573
38,272
$13,589,260
9,026
$2,737,940
1,919
$528,704
49,217
$16,855,904
••Exclusive of duplication on account of items handled by both parent bank and branch.
Items drawn
on
treasurer of
United States
3,778
3.310
4,112
3,836
4,120
4,258
4,031
4,071
4,022
4,280
4,135
4,594
December
Totals, 1922
Amount
Items forwarded to other
Federal reserve
banks and their
branches
Exhibit 5
Principal assetll and liabilities of rep:>rting member banks in leading cities as of the last reporr date in the month
Third Federal Reserve District
(OOO's omitted)
r~as t
r eport
da.le in
Tola l loa ns
a nd dis 'OllL1tS
(includin g rcdiscounts with
F . R Bank)
1922
1921
.-- -
J :,>/\,ESTl\\ J<:l'\TS
J\(·t
Un ilcd Slall's
scc lI1'iLies
1922
---
1921
1922
--
I
-1921
1922
1921
1922
- - --
Acco mmodalion
at
Federal R C'sC'rYe
13ank
--
192 1
--- -
1922
]92l
--
$IIlS, llll $1:'1l.1I 19 S022.0:;() SfiS2,:1J 7 $ 1.7.:10B :5:111.62 I $3 1,205 ."111 ,333
January .. .. ......• . . ... . . $S71,721l
$077,1l07
$7 1,IlSS
F eb l'llUry ... . . . ... ...... ..
:'70,1 III
(iIl1.,:~ OI
110,907
71 ,2fi I.
II) 1.,:lfi l
]S:',2IlS
fi I6,:102
6:13.0211
'17,71ll
:~9 . 0<)(i
:17,86:3
]21 ,:'26
Mareh ... . ......•. . ... . ..
S62,4.S6
685,033
78,311
i7,2S9
]1l:',97:;
1:'6.0:;8
.6211,919
1l23,76I.
111l.627
:13,9.;1
27,839
123,395
April. .... ... .............
560,101
665,908
79,068
72,3111.
173, 191.
] S6;103
619,891.
6:10,885
'19.2113
11.265
13,895
] 06,769
May ................. . ..
5S 1',87:1
651,975
8:3,86S
72, 117
IB3,2 1:1
1:,0,!!21.
fi62,91:1
627,1l7S
SO,:\69
'11 , 117
13,21:1
]05,6!:!6
JlIIH' . . . . . • • . . . . • . • . . . . ••.
5S5,(,96
612,097
91.,:' 10
77,B:16
111S,03 1
Hil , 199
667,2S2
601,71fi
;;o,lns
11.11 ()
] 7,760
97,:':19
.luly .......... ..... ......
;;;;7,1l03
621.913
92,07;;
66,071.
1119,097
1!)7,:)()7
fi77,2fi I.
621 ,121
;;1,B1:1
.11 ,(if17
J 5,7:17
79.1127
AlIgllSl. . .... . ....... . ....
;;fi3,S2]
@:1,88;;
96,:\:12
72,7:11.
1117. 11;;
15:1, III
677, 11:1
60H,790
;; 1,:171
~1,207
] 3,927
69,:128
Sep tember . ..... ... .... . . .
511:1,931
609,915
97,;;29
79,1;;1
]81-.097
] S.;.SIl9
(,9:;, 19:;
;;99,73;;
S(,,19 I.
·13,6flO
16.:10:;
fi:1 ,772
OcLohf'I· . ... ...•. : ...• . . ..
S99,95]
607,823
99,02:3
66,:121
lHl ,11 19
1:'6,1122
('90.0113
619,213
;;6,2119
·1:1,B;; I.
111,669
61 ,0:;1
November. ... .. .....•.. . .
603,5M
;;89,305
92,18-'J.
68,926
]33,. 1%
] 5B,7 11
692.(,01
629,9:\B
511,1l6
111.,212
30.939
~6,706
577,679
111,1)60
75,626
]B2,679
162,1\ 1.7
698,QB9
6l2,797
53,B57
45,618
26,918
50,024
,
December .. ......... , ... .
592,I)·lU
$71,9111
All othcr
Tin1l'
df'!,,,, it ,
d!'mand
d('po,it s
THE THIRD FEDERAL
RESERVE DISTRICT
Movement of principal asset and liability items during 1922
Federal Reserve Bank of Philadelphia
(000's omitted in dollar figures)
Bills discounted for
member banks
Date
Total
earning
assets
(2+5+6)
Total
Bills secured by
U. S. Government
obligations
Other
bills
discounted
Bills
bought
in open
market
United
States
securities
Total
cash
reserves
3
Member
banks
reserve
deposits
Total
deposits
8
Federal
reserve
notes in
circulation
Reserve
percentage
10
11
$110,574*
100,047f
103,007f
107,026t
$82,641
72,790
70,536
72,316
$62,977
60,084
57,739
57,416
$19,664
12,706
12.797
14,900
$15,464
14,381
12,973
12,805
$12,329
12,685
19,307
21,714
$225,056
221,375
221,123
210,136
$100,049
101,180
102,515
99,591
$106,984
103,842
108,745
107,184
$196,866
188,024
183,821
179,666
74.1%
75.8
75.6
73.3
1.
8.
15
21
115,847t
109,561 f
119,896f
113,818f
78.007
69,760
79.974
73,975
58,934
56,629
59,502
55,182
19,073
13,131
20,472
18,793
15,857
17,539
17,229
16,971
21,792
22,071
22,502
22,681
208,019
209,870
205,620
205,377
103,999
99,987
97,092
93,754
105,569
105,639
104,850
99,379
181,448
182,439
185,907
185,669
72.5
72.9
70.7
72.0
Mar. 1.
8.
15.
22.
29.
114,310$
101,593$
103,161$
106,675$
104,882$
74,958
62,148
60,212
68,459
63,815
55,833
49,100
46.638
49,299
45,884
19,125
13,048
13,574
19.160
17,931
16,499
16,592
15,096
15,322
18,185
22,751
22,751
27,751
22,792
22J80
219,224
225,319
233,760
220,874
224,404
108,521
104,242
110,533
101,450
102,379
110.944
107,159
113,731
106,829
104,310
188,463
187,346
188.167
186,202
188,926
73.2
76.5
77.4
75.4
76.5
April 5.
12.
19
26.
98,611
103,940
103,125
95,112
54,746
55,660
53,893
46,472
42,414
41,751
40,650
37,533
12,332
13,909
13,243
8,939
21,013
22,374
22,838
20,474
22,750
25,804
26,292
28,064
232,165
233,031
236,441
234,444
104,838
101,896
111,624
104,848
107,934
106,398
115,188
108,210
191,123
198,719
193,864
189,232
77.6
76.4
76.5
78.8
May 3.
10.
17.
24.
31.
97,048
98.256
100,852
100,197
95.516
46,484
47,959
48,883
50,128
49,409
36,595
36,792
39,568
38,973
38,945
9,889
11,167
9,315
11,155
10,464
18,275
17.961
19,633
18,733
15,736
32,289
32,336
32,336
31,336
30,371
234,056
227,024
223,877
225,769
227,041
108,527
105,736
107,688
105,881
103,304
112,445
108,732
109,765
112,969
106,987
185,560
183.860
183,122
180,899
181,518
78.5
77.6
76.4
76.8
78.7
June 7.
14
21.
28.
97,147
93,834
92,031
95,785
45,219
41,854
44,176
44,715
34,884
32,567
32,765
32,660
10,335
9,287
11,411
12,055
20,305
19,857
17,497
18,201
31,623
32,123
30,358
32,869
222,093
228,883
232,550
217,159
104,886
107,305
108,256
103,347
107,429
112,916
109,639
107,930
180,669
178,776
178,472
177,870
77.1
78.5
80.7
76.0
5.
12.
19.
26.
96,205
93,689
93,653
100,502
43,818
39,487
38,119
41,278
30,365
29,628
30,021
29,263
13,453
9,859
8,128
12,015
17,901
19,711
21,013
24,734
34,486
34,491
34,491
34,490
229,346
219,210
224,866
211,554
107,167
106,053
108,555
105,459
112,405
109,100
113,773
108,896
183,751
180,087
178,133
177,105
77.4
75.8
77.0
74.0
Aug. 2.
9.
16.
23.
30.
100,970
99,963
99,691
99,655
102,697
40,161
37,063
35,886
36,705
38,023
29,709
29,222
27,602
27,712
28,115
10,452
7,841
8,284
8,993
9,908
26,284
28,677
30,132
29,455
30,060
34,525
34,223
33,673
33.495
34,614
211,842
214,104
216,059
214,845
211,519
108,610
106,609
108,117
107,013
106,631
111,249
108,504
111,454
109,773
111,066
177,995
179,046
179,274
178,344
177.872
732
74.5
74.3
74.6
73.2
Sept. 6.
13.
20.
27.
100,399
99,886
98,372
96,053
37,721
37,725
39,771
39,413
28,858
28,871
29,241
28,928
8,863
8,854
10,530
10,485
28,064
28,118
25,883
24,205
34,614
34,043
32,718
32,435
216,866
215,687
223,890
221,421
106,826
109,342
114,131
109,007
109,344
113,122
117,725
110,358
182,528
180,422
180,159
184,211
74.3
73.5
75.2
75.2
Oct.
4.
11.
18.
25.
93,154
93,193
101.552
94,891
37,586
40,276
42,452
40,986
27,247
29,359
28,926
30,093
10,339
10,917
13,526
10,893
21,188
19,846
26,293
22,143
34,380
33,071
32,807
31,762
232,529
236,839
228,380
228,491
115,432
106,317
114J23
105,383
116,909
107,795
115,380
106,678
186.928
198,913
195,080
195,183
76.5
77.2
73.6
75.7
Nov. 1.
8.
15.
22.
29.
100,762
100,107
101,311
94,352
106,277
49,397
51,321
54,235
47,311
57,317
33,386
32,775
35,467
35,374
38,636
16,011
18,546
18,768
11,937
18,681
19,600
17,167
15,941
16,906
19,325
31,765
31,619
31,135
30,135
29,635
227,236
236,130
239,439
239,339
237,018
105,529
105,074
113,354
109,049
107,994
106,978
106,257
116,715
112,195
110,394
197,845
201,726
204,362
200,029
208,762
74.5
76.7
74.6
76.7
74.3
Dec.
106,728
102,218
110,694
119,030
57,680
52,828
53,696
53.638
39,346
36,955
40,515
39,618
18,334
15,873
13,151
14,020
19,413
20,255
21,655
22,817
29,635
29,135
35,343
42,575
239,654
243,757
240,239
237,087
112,585
107,877
108.583
112,257
114,642
109,901
110,399
113,784
209,098
216.166
224,773
221,536
74.0
74.8
71.7
70.7
Jan.
4. .
11.
18
25
Feb.
July
6.
13.
20.
27.
*Includes $140,000 of municipal warrants,
flncludes $191,000 of municipal warrants,
tlncludes $102,000 of municipal warrants.
@FedFRASER