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SECOND ANNUAL REPORT
OF THE '
FEDERAL RESERVE BANK
OF PHILADELPHIA
FOR THE YEAR ENDED DECEMBER 31, 1916
L
1917
SECOND ANNUAL REPORT
OF THE
FEDERAL RESERVE BANK
OF PHILADELPHIA
*
I
FOR THE YEAR ENDED DECEMBER 31, 1916
WASHINGTON
GOVERNMENT PRINTING OFFICE
1917
'
■
I
■
-
i.
t- ■
.
TABLE OF CONTENTS.
Page.
I. General business and financial conditions in the district......................
II. Results of the year’s operations. ...........................................................
Comparative statement of condition..................................................
Profit and loss statement.....................................................................
Earnings and expenses........................................................................
III. Investments of the Reserve Bank............................................................
Total invested funds...........................................................
Maturities of investments....................................................................
Bills discounted—members..........................................
Collateral notes—members..................................................................
Acceptances.........................................................................................
United States bonds and notes...........................................................
Municipal warrants..............................................................................
IV. General banking conditions in the district..............................................
Growth in banking resources..............................................................
Borrowings of member banks..............................................................
Bank clearings.....................................................................................
Bank and trade acceptances................................................................
V. Relations with the Government...............................................................
VI. Federal Reserve note issues......................................................................
VII. Internal management of the ReserveBank..............................................
The board of directors.........................................................................
Changes in official and clericalstaff...................................................
Work of the Federal Reserve Agent’s department............................
VIII. Transit department operations..................................................................
3
5
7
7
7
9
11
11
12
13
14
15
16
16
17
18
19
20
20
22
22
24
24
25
25
26
.1
SECOND ANNUAL REPORT OF THE FEDERAL RESERVE
BANK OF PHILADELPHIA.
R. L. Austin, Chairman and Federal Reserve Agent.
I. General Business and Financial Conditions in the District.
The year has been remarkable for the unusual business conditions
that existed. The improvement in all kinds of business, which was
first manifested in the summer of 1915, has continued in increasing
degree all through the year 1916, offering opportunity for employ
ment much in excess of the supply of wage earners; taxing the
capacity of industrial plants to their limits; stimulating the enlarge
ment and erection of additional manufactories; and greatly raising
the wages of most classes of labor. Prices of all kinds of merchandise
were much advanced; production and consumption of goods were
largely increased; and the volume of business, as reflected by the
reports from all sources, was far in excess of that ever before transacted
in any twelve months.
At the beginning of the year the banks of the district were carrying
excessive reserves and the rates for money were unusually low.
Deposits of all banks in the district increased largely, but notwith
standing the unusual expansion in business, the strong condition of
the banks was maintained up to the last month of the year, by which
time, however, the excess of reserves had been greatly reduced and
their loaning rates had advanced j to 1 per cent from the low rates
at the beginning of the year. Owing to the easy condition of our
member banks, there was little borrowing by them from the Federal
Reserve Bank until within the last 60 days of the year, during which
time, however, there was loaned to them $15,332,000 in the form of
rediscounts and collateral loans.
This bank has been in a position during the year to perform all
the functions expected of it in compliance with the requirements of
the Federal Reserve Act and the regulations of the Federal Reserve
Board.
The percentage of reserve carried by the Federal Reserve Bank
each month during the year is shown in chart 1 and the table
following.
6
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
Cash reserve.
Amount of
cash
reserve
required.
Month.
1916.
January....................................................
February.................................................
March...
..........
..................
April..........................
......................
May...........
......................................
June..
......................................
July...........................................................
August......................................................
September..........
..........................
October.....
..................................
November...
..
....
December................................................
Cash reserve carried.
Gold reserve carried.
Percent
age.
Percent
age.
Amount of
excess
cash
reserve.
69.5
63.4
71.4
53.8
55.0
62.9
64.8
64.5
67.3
65.6
66.6
66.8
$11,100,000
13,000,000
13,700,000
7,100,000
6,200,000
10,200,000
10,800.000
11,900,000
13,200,000
13,500,000
13,000,000
15,800,000
Amount.
.$7,500,000 $18,600,000
8,700,000 21,700,000
9,100,000 22,800,000
8,500,000 15,600,000
9,200,000 15,400,000
12,100,000 22,200,000
12,500,000 23,300,000
13,400,000 25,300,000
13,400,000 26,600,000
14,700,000 28,200,000
13^900,000 26,900,000
17,000,000 32,800,000
Amount.
87.2 $14,800,000
87.1 15,800,000
87.3 18,600,000
63.9 13,100,000
58.6 14^400,000
64.5 21,700.000
65.2 23,200,000
65.8 24,700,000
69.3 25,900,000
66.9 27,600,000
67.6 26,500,000
67.4 32,500,000
Deserves
FEDERAL RE5EBVE BANK OF PHILADELPHIA
PEBCENTAGE OF BEQUIBED CASH DESERVE AND PEBCENTAGE OE CASH BESEBYE
HELD ON THE FIB5T FBI DAY OF EACH MONTH
1316
Pee
cent
100%
Jan Feb Nab Ape May June July Aug
sept
Oct Nov DEC
Pee
cent
1001
901
90%
80%
80%
70%
70%
60*
50%
60%
EXCESS
40%
50%
40%
30*
30%
Eeouiceo
20%
35% OP NET DEPOSITS
£0%
10%
IO*
o
O
Actual
amount of bequibed cash besebve and amount of gold and
CASH PESEBVE HELD ON THE FIBST FRIDAY OF EACH MONTH
OP
D0LLAC5
*NQTE=- THt heavy black line eepecsents the amount of- cold held
Chart 1.
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
II. Results
of
Operation.
Comparative statement of condition of the Federal Reserve Bank of Philadelphia.
Dec. 30, 1916. i Dec. 31.1913.
RESOURCES.
Collateral notes—members.........
Bills discounted—members........
Bills bought in open market...
United States bonds and notes.
Municipal warrants.......................
Earning assets.....................
Interest accrued on United States bonds.....................
Cost of unissued Federal Reserve notes........................
Expenses paid in advance..................................................
Transit department expense.............................................
Furniture and equipment—general................................
Furniture and equipment—transit department........
Organization expense...........................................................
Due from Federal Reserve banks—net.........................
Due from banks and bankers.............. ........................... .
Exchanges for clearing house, cash items, etc............
Due from member banks—overdrafts............................
Federal Reserve notes on hand........................................
National and Federal Reserve notes of other banks.
Nickels and cents...................................................................
Mutilated currency forwarded for redemption...........
Gold settlement fund............................................ ..
Gold redemption fund.........................................................
Gold coin and certificates...................................................
Other lawful money..............................................................
Reserve..........................................................................
Total resources.
$900,000.00
663,076. 79
13,636,430.08
2,825,000.00
465,112.22
$168,274.06
2,542,975. 94
1,993,750.00
1,484,147.13
18,509,619.09
6,189,147.13
17,057.93
27,708.01
2,445. 83
1,367.18
10,142.15
43,172.04
1,684.23
18,491.31
15,409.87
5,382,501.30
609,389.97
3,864,733.22
171,140.00
463,476.00
121. 89
132,500. 00
8,042,000.00
100,000. 00
16,988,892.50
466,154. .30
31,517.06
3,025,971. 02
1,046,543. 43
33,959.73
380,267. 50
215,885. 00
100.83
9,695,000.00
25,597,046. 80
7,445,485.00
3,358,145.30
20,498,630.30
54,794,517.09
31,495,511.73
5,228,100.00
89,966.68
39,559.33
3,145,549.05
44,965,072.26
26,015. 72
1,300,000.00
254.05
54,794,517.09
5,269,600.00
LIABILITIES.
Capital.......................................................... . ...........
Profit and loss.............................................. ..........
Unearned discount and unearned interest..
Government deposits...........................................
Due to member banks.........................................
Cashier’s checks outstanding............................
Federal Reserve notes—net liability.............
Miscellaneous liabilities.......................................
Total liabilities.
14,009,25
787,178.48
25,424,376. 56
107.63
239.81
31,495,511.73
The following statement shows the results of the operation of the
bank for the year 1916:
Profit and loss statement of year's operation.
Earnings, 1916.............................................................................................. $417,939.27
Expenses of operation of the bank proper, exclusive of
transit department.............................................................. $130, 742. 26
Cost of Federal Reserve notes used.......................................
16, 600. 00
Miscellaneous charges on account of note issues...................
1, 002. 79
Depreciation in furniture and equipment............................
15, 652. 78
Disbursements of transit department in excess of net serv
ice charge............................................................................
4,000. 00
Total....................................................................
Excess of earnings.......................................................................................
Deduct organization expenses....................................................................
167,997.83
249,941. 44
31, 517. 06
Net earnings...................................................................................... 218, 424. 38
Surplus, Jan. 1, 1916........................................................................................................
Total................................................................................................ . 218,424.38
Dividends paid Dec. 30, 1916, for period covered from Nov. 2, 1914, to
June 30, 1915............................................................................................ 128, 457. 70
Profit and loss credit balance, Jan. 1, 1917......................................
90330°—17---- 2
89, 966. 68
EEPOET OF THE FEDEEAL EESEEVE -BANK OF PHILADELPHIA.
8
As a result of the operations for the year, a dividend was declared
on December 20 at the rate of 6 per cent per annum, for the period
from November 2, 1914, to June 30, 1915, amounting to $128,457.
After charging off all expenses of organization and paying the divi
dend, $89,966 remained in the profit and loss account.
The amount of earnings and current expenses, including the cost
of issuing Federal Reserve notes, for each month of operation during
the year 1916 is shown in chart 2 and the following table. It will
be seen that earnings have increased rapidly while expenses during
the year have been fairly stable. This table also shows the per
centage of the net earnings to the capital stock.
Monthly eabnings and expenses
Fedebal Peseeye, Ejank of- Philadelphia
OP DOLLARS
1016 v
Jan | Feb |Mar [ Apr |may |June|Juuy| Aug |sept | Oct | Nov|Dec
THOOSAKOS
op Dollars
60
60
*
50
50
•
40
40
\ E
ACNlh G5y/
50
50
50
50
•
CUE GENT I IXPtNS
z
«...
z
to
to
0
0.
z
z/
Chart 2.
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
9
Earnings and expenses.
Earnings.
Month.
1916.
January..............
February............
March..................
April....................
May......................
June......................
July......................
August................
September.........
October...............
November..........
December...........
From
invest
ments.
$14,512
14,113
20;464
25', 619
31,969
31,464
36,418
35,596
36; 107
40,531
37,362
52,743
From sale
of United
States se
curities.
$1,995
1,300
7,590
285
1 Net earnings.
Current
expenses
(including
cost of
Percentage
Total Federal Re
Sundry
to paid-in
Amount.
capital
profits earnings. serve notes
issued).
stock.
$214
17
378
12,910
'298
299
1,713
L869
299
324
343
1,473
$14,726
14,130
20^ 842
38^529
32,267
31,763
38; 131
37;465
38,401
42,155
45,295
54,501
$12,167
li;210
10', 649
10,758
11,160
12,410
11^031
9,254
12,303
11,817
17,592
18,653
$2,559
2; 920
10,193
27;771
21,107
19;353
27;100
28;211
26,098
30,338
27,703
35,848
0.6
.7
2.3
6. 4
4.8
4.5
6. 2
6.5
6.0
7.0
6.4
7.9
1 Thisitem represents gross earnings less current expenses only, not including any deductionsfor depre
ciation on furniture and equipment or organization expenses.
The percentage of the net earnings to the capital stock for each
month of the year is also shown in chart 3.
Referring to the statement of condition, it indicates that the oper
ations of all the departments of the Federal Reserve Bank increased
largely during the year.
10
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
Member bank reserve deposits increased 819,541,000 through the
operation of the Federal Reserve Act, which required payments to
the Federal Reserve Bank during the year of two installments of
reserves of member banks.
The balance to the credit of the United States Government shows
a large gain since January 1, 1916, when the Reserve Bank became
the fiscal agent of the Government.
Invested funds, including the items, bills discounted-members,
collateral notes-members, bills bought in the open market, United
States bonds, and municipal warrants, increased 812,320,000.
Reserve, including gold and lawful money in vault and the gold
settlement fund balance in Washington, increased 85,098,000.
The growth in total resources, cash reserve, and earning assets of
the Reserve Bank during the past two years is shown in the fol
lowing chart:
The variations in total resources, member bank reserve deposits,
cash reserve, and earning assets of the bank, by months during the
year, are shown in chart 5. The rise in member bank deposits in
May and November was due to the increase in the percentages of
reserve to be carried in the Federal Reserve Bank as required by the
Federal Reserve Act. Steady increase in this item is also due to
the continuous growth throughout the year of the amounts of
individual and bank deposits of member banks, thereby increasing
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
11
the amount of reserve required to be kept with the Federal Reserve
Bank.
III.
Investments of the Bank.
Considerable increase in the earning assets of the Federal Reserve
Bank is noticeable by referring to chart 6 and the following table,
which show the amount of the invested funds of the bank on the
first of each month:
<
Total investedfunds.
»
Earnings.
i
Month.
1916.
January.................................................................................................
February..............................................................................................
March............................................. . .....................................................
April......................................................................................................
May........................................................................................................
June.......................................................................................................
July........................................................................................................
August..................................................................................................
September...........................................................................................
October.................................................................................................
November............................................................................................
December.............................................................................................
Average
Total
daily
Average
investment amount of
rate of
operations. invested return from Total
funds.
all
earnings.
invested
funds.
$3,012,800
1,948,800
6,542,700
5,296,500
6,302,000
7,329,200
7,318,400
4,476,100
7,571,500
7,469,300
9, 462,600
18,781,700
$7, 722,182
8,140,448
11,140,662
13,950,526
16,719,120
17,120,064
18,119,076
17,357,542
17,728,745
18,881,183
17,972,828
22,239,398
2.21
2.18
2.16
2.24
2.25
2.24
2.37
2.42
2.48
2.53,
2.53
2.80
$14,512
14,113
20,464
25,619
31,969
31,464
36,418
35,596
36,107
40,531
37,362
52,743
85,771,600
15,590,981
2. 42
376,898
12
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
Reference to chart 7 and the following table shows that the major
portion of the earning assets of the Federal Reserve Bank have been,
as a rule, paper of less than 60 days ’ maturity.
Maturities of invested funds (not including United States bonds or notes).
Maturities of amounts held on last Friday of month.
Month.
1916.
January................
February.............
March...................
April......................
May......................
June......................
July.......................
August..................
September..........
October................
November...........
December............
Ito 10
days.
11 to 30
days.
31 to 60
days.
61 to 90
days.
91 days to
Total in6 months, vested funds.
$921,264
767,035
709,942
642,838
1,873,387
1,588,427
2,280,562
1,742,325
2,420,344
3,364,895
2,670,292
5,076,416
$835,274
849,429
1,679,007
2,047,223
4.896,803
2,872,628
2,640,270
2,932,987
2,918,411
2,615,853
5,111,535
4,666,472
$1,406,368
509,576
1,563,729
5,519,986
3,726,931
3,570,247
4,471, 783
3,848,354
4,604,153
6,454,234
5,903,828
4,176,413
$340,284
269,356
4,573,314
2,446,459
2,167,563
3,357,641
3,441,849
3,739,104
3,878,941
3,559,581
2,304,225
3,121,287
SI,770,298
2,336,735
322,767
301,090
961,886
1,315,597
1,531,671
546,085
73,013
58,974
82,593
88,029
$5,273,488
4,732,131
8,848,759
10,957,596
13,626,570
12,704,540
14,366,135
12,808,855
13,894,862
16,053,537
16,072,473
17,128.617
REPORT OP THE FEDERAL RESERVE BANK OF PHILADELPHIA.
Maturities op Investments (Mot
including
13
United States Bonds)
AT THE CLOSE OP E.U51NE5S ON LAST FRIDAY OP EACH MONTH
at the
Millions
of Dollar
JAN
7
Federal Eeserve Bank op Philadelphia.
MAJORS
PEE>. MAR Apr. May JUNE: July AUG Sept Oct Nov. DEC. artcmso
7
/
6
/
K
/ \y
5
I
4-
1J
I
3
/
1
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Z.
5
z
X
31 T(J l 60 r AYS^.•••
z*
£>'0O DAYS
V
:\
: \
/ \
/ ' r ******
\ f
2
6
\
z
zz
z
z
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4
11 T O 30 DAYS
3
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' zz
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T O 6 A ONTH 5
1
— _____ —
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Chart 7.
BILLS DISCOUNTED----- MEMBERS.
The rediscount operations for the year 1916 amounted to 88,684,332,
as compared to 85,137,083 in 1915. Rediscounts were made for 45
member banks, of which 10 were in Philadelphia, 24 elsewhere in
Pennsylvania, 10 in New Jersey, and 1 in Delaware. These were the
result of 331 applications, covering 3,292 pieces of paper, averaging
$2,638 per piece. The smallest note was for $1.33, while the largest
was for $100,000. The minimum amount of rediscounted paper held
by the Reserve Bank at any time during the year was $70,030, on
October 17, while the maximum amount was $1,219,569, on July 19.
A summary of the year’s operations is given in the following table:
Bills discounted—Members {exclusive of member banks' collateral notes').
Month.
Earnings.
Average
Banks
Total
daily
redis
rediscount amount of
counting. operations. rediscounts Average
Amount.
on hand.
rate.
1916.
January................................................................................
February..............................................................................
March....................................................................................
April......................................................................................
May........................................................................................
June.......................................................................................
July........................................................................................
August..................................................................................
September...........................................................................
October................................................................................
November............................................................................
December............................................................................
20
10
13
16
15
13
11
6
7
7
7
18
$242,773
109,247
212,010
922,680
1,590,123
945,730
1,380,125
739,515
521,346
87,303
382,521
1,550,959
$184,040
217,425
243,312
484,626
775,309
547,013
721,273
388,923
177,480
93,024
216,223
661.395
4.03
4.10
4.09
3.74
3. 78
3.67
3.93
3.96
3.98
4.11
3.89
3.89
$629
707
845
1,487
2,488
1,646
2,406
1,307
580
324
691
2,183
143
8,684,332
392,504
3.90
15,293
14
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
At the beginning of the year the discount rates of the Federal
Reserve Bank were as follows: Three per cent for commercial paper
having a maturity not exceeding 10 days; 4 per cent for commercial
paper having a maturity over 10 days, not exceeding 90 days; 4|
per cent for agricultural paper having a maturity over 90 days, not
exceeding 6 months; 3 per cent for trade acceptances and commodity
paper having a maturity not exceeding 90 days. These rates con
tinued without change until July 5, when the rate for commercial
paper maturing within 10 days and the rate on commodity paper and
trade acceptances was advanced from 3 per cent to 3| per cent. On
September 21 the rate for commercial paper maturing within 10 days
was abolished and a rate of 34 per cent was established for the discount
of paper with a maturity of not more than 15 days. On the same
day a rate of 3| per cent was established for member bank collateral
notes with a maturity of not more than 15 days. Since that time
there has been no change in the discount rates. The rates and changes
are given in the following table:
,
Discount rates.
Changes made in rates.
Classes of discounts and loans.
Oct. 14,
1915.
Commercial paper:
I to 101 days’ maturity............................................................................................
II to 30 > days’ maturity...................... a..........................................................
1 to 15 days’ maturity........................................................................... t................
16 to 30 days’ maturity............................................................................................
31 to 60 days’ maturity.................................... .......................................................
61 to 90 days’ maturity............................................................................................
Agricultural and live-stock paper: 91 days to 6 months’ maturity..............
Collateral notes—members: 1 to 15 days’ maturity..............................................
Trade acceptances:
I to 10 days’ maturity..............................................................................................
II to 30 days’ maturity............................................................................................
31 to 90 days’ maturity.............................................................. .............................
Commodity paper:
1 to 30 days’ maturity..............................................................................................
31 to 60 days’ maturity.......................................... .................................................
61 to 90 days’ maturity............................................................................................
Julv 6,
1916.
Sept. 21,
1916.
31
4
41
4
4
41
41
31
3
3
3
31
31
31
3
3
3
31
31
31
1 Rates discontinued Sept. 21,1916.
Bankers’ acceptances—authorized discount rate: Minimum, 2 per cent; maximum, 4 per cent.
COLLATERAL NOTES---- MEMBERS.
Authority to make advances to member banks on their own
promissory notes having a maturity of not over 15 days was given by
an amendment to the Federal Reserve Act, approved September 7,
1916. Since September 21, when the discount rate was announced,
the Federal Reserve Bank has made loans to member banks on their
own notes amounting to 813,644,268, the amount of such notes on
hand December 30, 1916, being 8900,000. The maximum amount
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
held was $5,251,268 on December 21.
transactions are as follows:
15
Detailed figures of these
Collateral notes—members.
Average
Number of Amount of
daily
banks bor note opera amount
on
rowing.
tions.
hand.
Month.
1916.
September.......................................................................
October............................................................................
November..................................................................... ..
December........................................................................
1
2
5
10
Earnings.
Average
Amount.
rate.
$25,000
220,000
3,032,500
10,366,768
$4,167
90,000
493,133
3,775,613
3.5
3.5
3.5
3.5
$12
271
1,439
11,379
13,644,268
1,090,728
3.5
13,101
ACCEPTANCES.
By far the largest part of the Federal Reserve Bank’s earning
assets consists of bankers’ acceptances bought in the open market.
These acceptances originated in the exportation and importation of
goods to and from nearly all parts of the world and cover transactions
in chemicals, coal, coffee, copper, cotton, fish, flour, gold, grain, hair,
hides, machinery, meat, oil, pulp, railroad cars and materials, rubber,
ships, shoes, silk, steel products, sugar, tobacco, wool, and various
other kinds of merchandise. The total amount of acceptances
purchased during the year was $53,122,000, as compared to $7,566,000
in 1915. The amount of acceptances on hand has fluctuated between
$1,544,000, on February 15, and $14,816,000 on December 8. The
lowest rate at which they were bought was 2 per cent, and the highest
rate was 31 per cent, in December. There were no purchases of
domestic acceptances during the year. Details of the purchase of
acceptances are as follows:
Bills bought in open market.
Acceptances purchased.
Month.
1916.
January....................................................
February.................................................
March.......................................................
April.........................................................
May...........................................................
June..........................................................
July...........................................................
August.....................................................
September..............................................
October....................................................
November...............................................
December.-.............................................
Bankers’
accept
ances.
Trade
accept
ances.
Total.
Earnings.
Average
daily
amount of
accept
ances on Average Amount.
rate.
hand.
$194,000
658,000
4,744,000
3,837,000
3,956,000
5,602,000
4,922,000
3,582,000
6,360,000
5,749,000
5,514,000
6,651,000
$51,000
15,000
153,000
153,000
164,000
127,000
79,000
231,000
213,000
156,000
11,000
$194,000
709,000
4,759,000
3,990,000
4,109,000
5,766,000
5,049,000
3,661,000
6,591,000
5,962,000
5,670,000
6,662,000
$2,367,000
1,674,000
3,751,000
5,972,000
8,036,000
9,611,000
10,990,000
10,662,000
11,624,000
11,883,000
12,352,000
14,102,000
2.08
2.07
2.05
2.03
2.05
2.10
2.17
2.28
2.42
2.45
2.43
2.58
$4,179
2,743
6,519
9,961
14,007
16,581
20,255
20,679
23,092
24,681
24,638
30,908
51,769,000
1,353,000
53,122,000
8,585,000
2.31
198,243
16
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
UNITED STATES BONDS AND TREASURY NOTES.
Since January 1, 1916, the Federal Reserve Bank has purchased
82,500,000 of 2 per cent United States Government bonds at an aver
age price of 99.88 per cent. Of this total, 81,000,000 were purchased
from member banks. On December 31, 1915, there were 81,993,750
of these bonds on hand, making a total of 84,493,750 subject to con
version under the terms of the Federal Reserve Act. In accordance
with the ruling of the Secretary of the Treasury, 82,849,000 were
converted into 30-year 3 per cent bonds and 1-year 3 per cent Treas
ury notes. All of the 30-year conversion three’s have been sold at a
premium, resulting in a profit of 825,900. As the 2 per cent bonds
were purchased at a discount and converted into three’s at par, the
bank derived a further profit of 89,734, making a total profit of
835,634 from United States bond operations during the year. The
following table shows the average amounts of bonds and notes held,
with earnings, for each month during the year:
United States bonds and notes.
United States bonds.
Month.
United States notes.
Earnings.
Average
daily
amount on
hand.
Amount.
Average
daily
amount on
hand.
Average
rate.
1916.
January.....................................
February.................................
March.......................................
April.........................................
May...........................................
June..........................................
July...........................................
August......................................
September..............................
October....................................
November...............................
December................ . ..............
$2,809,844
3,286,891
3,905,911
4,175,070
4,000,000
4,000,000
3,172,613
2,935,677
2,819,333
2,278,065
1,874,600
1,654,065
2.01
2.02
2.01
2.28
2.24
2.24
2.11
2.17
2.13
2.25
2.05
1.98
$4,807
5,268
6,651
7,819
7,594
7,348
6,011
5,414
4,933
4,356
3,152
2,787
$818,000
818,000
818,000
1,174,000
1,174,000
1,174,000
Average for the year.
3,076,005
2.12
66,140
498,000
Earnings.
Average
rate.
3.00
3.00
3.00
3.00
3.00
3.00
Amount.
$2,068
2,067
2,000
2,967
2,871
2,967
14,940
MUNICIPAL WARRANTS.
Warrants amounting to 87,823,000 were purchased during the year,
the average income yield being about 2.6 per cent. These warrants
were issued by cities, States, and townships of Arizona, California,
Connecticut, Georgia, Kentucky, Maine, Massachusetts, Missouri,
New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Tenhessee, and Washington. Details are given in the following table:
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
17
Municipal warrants.
Month.
1916.
January....................................................................................................
February.............................................................. . .................................
March........................................................................................................
April.................................................
May..........................................................................................................
June...................................................................................................
July..........................................................................
August......................................................................................................
September...............................................................................................
October.....................................................................................................
November.......................................................................... ...................
December.................................................................................................
Average
daily
Amount of
amount
of
warrants
purchased. warrants
on hand.
Earnings.
Average Amount.
rate.
$1,576,000
630, 600
855, 700
100,000
862,800
617, 600
889,800
75,600
434, 200
1,200,300
378, 200
202,200
$2,361,500
2,962,000
3,240,000
3,318, 700
3,908,000
2,962,300
2,416,900
2,553,400
2,285,900
3,362, 500
1,863,100
872,600
2. 44
2.29
2.35
2.33
2.38
2. 42
2.93
2.83
2.93
2.78
2.99
3.40
$4,897
5,395
6,449
6,352
7,880
5,889
5.680
6,129
5,490
7.932
4,571
2,519
7,823,000
2,675,600
2.58
69,183
IV. General Banking Conditions in the District and Relations
With Member Banks.
The Philadelphia district has a population of 6,540,000 and an area
of 37,198 square miles. There are 632 national banks, 137 state
banks, and 231 trust companies in the district. Five national banks
have been organized during the year; two have gone into liquidation,
and one has failed.
The total resources of the national banks of the district amount to
SI,195,983,000; and the resources of state institutions to 8915,084,000
making the total banking resources of the district $2,111,067,000,
exclusive of savings banks and private bankers. It should be noted
that trust funds which are held by the trust companies of this district
to an amount probably in excess of $1,000,000,000 are not included
in the above figures.
The Federal Reserve Bank is located in the only reserve city in the
district. Only thirty member banks, or less than 5 per cent of the
total number, are in Philadelphia. These have a capital and surplus
of $59,430,000 or 34 per cent of the total for all the banks of the
district and carry balances with the Federal Reserve Bank of $25,558,482, or 58 per cent of the total member bank deposits with the Fed
eral Reserve Bank.
Chart 8 shows that the banking resources of this district have
gained materially during the last two years. The combined resources
of the national banks, state banks and trust companies have increased
approximately $294,000,000, or 16 per cent within a year, as shown
in the following tables. The trust companies have gained $152,000,000, or nearly 24 per cent, and the national banks $141,000,000,
slightly more than 13 per cent.
18
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA,
Chart 8.
Combined total resources of the national banks, State banks, and trust companies in the
district.
State banks.
National banks.
State.
1914
1915
$14,834,000
77, 745,000
910; 899; 000
1916
1914
1915
1916
$15,278,000
$17,689,000
95,094,000
81,802,000
958,028,000 1,083,200,000
$3,804,000
9,412,000
104,109,000
$4,442,000
9.761,000
106,344,000
$5,095,000
9,612,000
107,069,000
Total............. 1,003,478,000 1,055,108,000 1,195,983,000
117,325,000
120,547,000
121,776,000
Delaware.................
New Jersey.............
Pennsylvania.........
Total for all banks in this district.
Trust companies.
State.
1915
$18,683,000
43, 752,000
518,620,000
$21,288,000
45,916,000
574,471,000
$41,008,000
$37,321,000
$27,887,000
130; 909; 000
137,479,000
52,865,000
712,556,000 1,533,628,000 1,638,843,000
$50,671,000
157,571,000
1,902,825,000
Total.............
581,055,000
641,675,000
793,308,000 1, 701,858,000 1,817,330,000
2,111,067,000
1916
1914
1915
1914
Delaware.................
New Jersey.............
Pennsylvania.........
1916
Note.—Figures of the same date could not be secured for the various classes of banks in the different
States and it was impossible to get complete returns in some cases, therefore, the figures in this and the fol
1 owing table should be considered as reliable estimates rather than as exact calculations.
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
19
Combined total resources of the national banks, State banks, and trust companies in the
district—Continued.
PERCENTAGE OF INCREASE IN RESOURCES.
National banks.
Trust companies.
State banks.
All banks.
State.
1915 over 1916 over 1915 over 1916 over 1915 over 1916 over 1915 over 1916 over
1914.
1914.
1914.
1915.
1914.
1915.
1915.
1915.
Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent.
Delaware.......................
New Jersev...................
Pennsylvania..............
3. 0
5.2
5.1
15. 8
16.2
13.1
16.5
3.7
2.2
14. 8
1 1.5
0.7
14. 0
5.0
10.7
31.0
15.1
24.0
9. 9
5.0
6.9
23.3
14.6
16.1
Total...................
5.1
13.3
2.7
1.0
10.4
23.6
6.8
16.2
1 Decrease.
Combined statement of condition of member banks.
Comptroller’s call of—
Sept. 12,1914.1 Sept. 2, 1915. Sept. 12,1916.
RESOURCES.
Loans and discounts...,........................
United States bonds........ . .....................
Other bonds, securities, etc.............. •..
All other resources....................................
Total..................................................
$527,799,000
61,438,000
198,582,000
267,289,000
$597,371,000
58,812,000
244,462,000
295,338,000
1,003,478,000 1,055,108,000
1,195,983,000
77,248,000
98,150,000
21,100,000
58,278,000
640,860,000
149,604,000
9,868,000
76,814,000
97,304,000
24,460,000
56,291,000
759,894,000
166,926,000
14,294,000
1,003,478,000 1,055,108,000
1,195,983,000
$518, 774,000
60,843,000
156,673,000
267,188,000
LIABILITIES.
Capital stock...............................................
Surplus.........................................................
Undivided profits.....................................
National bank notes outstanding....
Individual deposits..................................
Bank deposits............................................
All other liabilities...................................
Total..................................................
76,875,000
98, 761,000
20, 759,000
64,197,000
570,342,000
159, 796, 000
12, 748, 000
1 The figures for 1914 include only those banks now in this district.
Banking and credit conditions within the district during the past
year have been such that there has not been much opportunity for
the Federal Reserve Bank to demonstrate its real usefulness to
member banks. The following table of borrowings by member banks
shows, however, that the Reserve Bank is assuming an increasingly
important position with its member banks.
Summary of borrowings by member banks in district No. 3.
Date of comptroller’s call.
Amount of
Number of rediscounts
' Total
Total
with
borrowing
amount of amount of
Federal rediscounts. borrowings
banks.
. Reserve
Bank.i
116
76
95
92
54
61
76
Dec. 31,1915.
Mar. 7, 1916..
May 1,1916..
June 30,1916.
Sept. 12,1916.
Nov. 17,1916.
Dec. 27, 1916.
$168,274
215,307
519,295
534,242
262,605
509,667
4,257,745
1 This amount includes collateral notes, members.
$646,482
492,126
924,948
942,990
468,262
804,569
4,452,354
$2,935,182
1,806,126
2,757,948
2,636,490
1,483,762
1,825,381
5,708,151
20
REPORT OP THE FEDERAL RESERVE BANK OF PHILADELPHIA.
The growth and development of business in this district during the
past year is evidenced by the increase in bank clearings. In Phila
delphia the increase was 84,220,000,000, or 48 per cent, for 1916 over
1915; for the other cities in the district, 8155,000,000, or 45 per cent,
over last year.
The clearings for the district, for Philadelphia alone, and for the
country banks of the district, by months during the past two years,
are shown in chart 9 and the following table. It will be noticed that
the clearings for Philadelphia and for the district, for November, 1916,
were nearly twice as large as in January, 1915.
Bank clearings.
City.
Altoona..............
Chester...............
Harrisburg........
Lancaster..........
Norristown.......
Philadelphia...
Reading.............
Scranton............
Trenton..............
Wilkes-Barre...
Wilmington....
York....................
Total.......
Per cent
increase
1916 over
1915.
Clearings,
1915.
Clearings,
1916.
Increase 1916
over 1915.
827,189,489
39,780,519
87,767,7( 5
85,067,499
25,627,504
8,863,633,292
95,820,425
164,023,379
99,501,058
87,017,610
107,730,062
» 47,851,799
$31,235,885
61,787,108
99,946,156
98,474,4(6
2), 415,156
13,083,317,712
117,472,670
165,075,943
116,304,782
92,539,090
156,347,614
53,801,515
$4,046,396
22,006,589
12,178,391
13,406,967
3,787,652
4,219,684,420
21,652,245
1,052,564
16,803,724
5,521,480
48,617,552
5,949,716
15
55
14
■16
15
48
23
1
17
6
45
12
9,731,010,401
14,105,718,097
4,374,707,696
45
The use of American bank and bankers’ acceptances in financing
export and import business is increasing rapidly. The following
table shows aggregate acceptance liabilities of the member banks in
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
21
Philadelphia at various dates during the past year. So far as is
known, nonmember banks in the district have not made any ac
ceptances.
Date of comptroller’s call:
Dec. 31, 1915..
Mar. 7, 1916....
May 1, 1916....
June 30, 1916..
Sept. 12, 1916..
Nov. 17, 1916..
Dec. 27, 1916..
Acceptance liabilities.
.
.
.
.
.
.
.
$2,809,000
5, 751, 000
6, 219, 000
5, 234, 000
5, 084, 000
8, 640, 000
8,309,000 - -
The subject of the use of trade acceptances has been under earnest
discussion during the year and is one worthy of the attention of
trade organizations, member banks, and business men. A more
general adoption of this method of carrying1 the purchase of goods,
instead of the open book accounts, would be a step forward in good
banking practice.
Through the establishment of the collection system, active relations
maintained with all the member banks, it is believed, will grow more
intimate. Through the collection system, the Reserve Bank also
has direct dealings with about half of the nonmember banks of the
district, and it is expected that in the near future, direct relations
will be extended to all the banks in the district.
Some member banks still follow the policy of keeping only the
required portion of their reserves with their Federal Reserve Bank,
while others find it to their advantage to keep a larger portion with it.
As gold in the Federal Reserve Bank serves a much larger purpose
than in the vaults of the member banks, it is hoped that it will not be
long before all the banks will reduce their holdings of cash to the
minimum necessary for counter purposes and keep as much of their
reserve as possible with their Federal Reserve Bank. This would
also relieve member banks of the responsibility incident to keeping
on hand large amounts of cash. The following table shows the
changes in the reserve position during the past 18 months:
Reserve condition of member banks.
[000’s omitted.]
In vault.
Date of comntroller’s
call.
With Federal With approved
Reserve Bank. reserve agents.
Excess.
Held.
Re
quired.
Held.
Re
quired.
Held.
Re
quired.
Held.
48,299
50,420
50,886
36,516
38,428
37,822
19,443
20,238
27,267
16,625
17,550
24,092
98,752
94,407
75,215
36,516
38,428
30,957
166,493
165,065
153,368
89,657
94,406
92,872
76,836
70,659
60,496
55,568
51,157
46,863
55,485
51,633
53,492
40,663
40,898
40,324
42,591
44,308
44,038
28,899
26, 712
34,108
41,294
47,443
62,114
25,954
26,106
33,013
34,856
44,308
44,038
93,868
87,232
73,487
80,821
78,036
66,690
33,309
33,501
25,704
27,120
20,222
20,032
178,335
165,101
154,458
177,600
177,112
182,296
99,926
100,505
99,041
104,567
108,838
108,108
78,409
64,596
55,417
73,033
68,274
74,188
1915.
Sept.2..
Nov. 10..
Dec. 31.
Total.
1916.
Mar. 7...
May 1..
June 30..
Sept. 12.
Nov. 17..
Dec. 27.
Re
quired.
22
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
It is felt desirable to remind the officers and directors of member
banks that this bank is their institution and its officers would be
glad to have them call more frequently to discuss the affairs of the
Reserve Bank and other matters of common interest.
The Chairman wishes to express his deep appreciation of the coop
eration and assistance rendered by the officers of banking institutions
in the district in furnishing information as to business conditions in
their communities and of the hearty way they responded to all
requests for such information.
V. The Federal Reserve Bank and the Government.
Since January 1, 1916, the Federal Reserve Bank has been acting
as fiscal agent of the United States Government. At that time the
accounts in some of the national banks of Philadelphia were closed
and the balances amounting to about $800,000 were transferred to
this bank. Since then a portion of the receipts of the Government
has been deposited in the Reserve Bank daily, involving the handling
of a large amount of checks and cash. The volume of such deposits
varies considerably. The maximum amount to the credit of the
Government was $10,750,000 on July 8, when the receipts of the
internal-revenue office were especially large, due to the payment of
taxes on incomes.
Thfe Reserve Bank has had intimate and active relations with the
subtreasurer at Philadelphia and the chief national-bank examiner of
the district, and it affords much pleasure to acknowledge the cour
teous attention and hearty cooperation which has been extended to
the bank by those connected with these departments.
VI. Federal Reserve Note Issues.
The issuance of Federal Reserve notes largely increased during the
year, as shown by the following comparative statement:
Dec. 30,1916.
Dec. 31,1915.
Federal Reserve notes received from Comptroller of Cur»
$12,480,000
$30,480,000
rency, from organization of bank............................................
Federal Reserve notes returned to Comptroller- of Cur
rency for redemption and destruction, from organiza
640,000
tion of bank....................................................... .............................
6,150,410
2,680,000
7,260,000
Federal Reserve notes on hand...................................................
9,160,000
17,069,590
Federal Reserve notes issued to the bank...............................
Gold deposited with agent to retire outstanding Federal
Reserve notes:
$4,160,000
Gold on hand.................................. ........................................... $3,730,000
5,000,000
Credit balance with Federal Reserve Board................... 11,180,000
859,590
Credit balance in gold redemption fund...........................
9,160,000
15,769,590 --------------None.
1,300,000
Paper held by agent to secure Federal Reserve notes.........
As a result of the issue of Federal Reserve notes, the gold in the
hands of the Federal Reserve Agent increased $6,609,590 during the
year. Much strength is added to the Federal Reserve Bank by the
accumulation of gold through the issue of Federal Reserve notes.
Due to the activity of business, a much larger amount of currency
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
23
was used for pay roll and other purposes. The Federal Reserve notes
outstanding have increased from 89,160,000 to 817,069,590, which are
secured by a deposit of gold and commercial paper with the Federal
Reserve Agent. Should an unusual demand for loans be experienced,
the reserve of the bank could be increased through the release of all
the gold held by the Federal Reserve Agent by the substitution with
him by the bank of an equal amount of commercial paper. Accord
ing to the statement of the agent of December 30, 1916, the bank’s
gold reserve in that case would be increased nearly 810,000,000,
which is evidence of the potential strength of the gold fund accumu
lated through the issuance of Federal Reserve notes.
The amount of Federal Reserve notes outstanding, by months,
during the past two years, is shown in chart 10 and the following table:
Federal Reserve notes.
Amount
Amount
Amount
held by
outstanding Amount
Amount outstanding
bank
at begin issued dur redeemed.
at end of
at
end of
ing month.
ning of
month.
month.
month.
Month.
1916.
680,000
1,360,000
6,080,000
3,340,000
$500,000
1,297,450
509,300
372.500
490.900
474.900
380,000
469.200
437.200
493,110
432.500
391,050
14,157,700
>6,248,110
$9,160,000
8,660,000
7,687,550
7,178, 250
6,805, 750
6,314,850
7.312.650
7.832.650
7,363,450
7,606, 250
8,473,140
14,120,640
January...
February..
March.........
April...........
May.............
June............
July.............
August....
September.
October....
November.
December..
Total
$325,000
1,472,700
900,000
$8,660,000
7,687,550
7.178.250
6,805,750
6,314,850
7.312.650
7.832.650
7,363,450
7.606.250
8,473,140
14,120,640
17,069,590
Amount in
circulation
at end of
month.
$561,445
202,500
115,795
150,695
158,470
633,520
510,650
443,440
472,170
425,850
1,519,010
171,140
$8,098,555
7,485,050
7,062,455
6,655,055
6,156,380
6,679,130
7,322,000
6,920,010
7,134,080
8,047,290
12,601,630
16,898,450
lOf this amount, $5,510,410 were notes unfit for circulation, which were delivered to the Comptroller of
Currency for destruction. The balance, $737,700, were notes fit for circulation, which were reissued to the
bank by the Federal Reserve Agent.
Pededal Deseqve Notes Outstanding
Pededal Desecve Bank oe Philadelphia
Millions
0P D0LUS3 JUNE
1913
July Aug Sept Oct Noy
1916
Dec
Jan
Feb
NAP App NAY June July Aug 5EPT Oct Nov Dec
Millions
0FD0LLLB5
18
18
16
16
14
H
te
12.
10
10
8
6
6
6
4
4
a
2
0
____
Chart 10.
0
24
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
The next table shows that note issues were heaviest during the fall
of the year and that all of the notes issued were of $5, $10, and $20
denominations.
Denominations of Federal Reserve notes issued during 1916.
Month.
Fives.
1916.
January.............................................................................................
February..........................................................................................
March.............................................................................................
April...................................................................................................
May....................................................................................................
June..................................................................................................
July....................................................................................................
August...............................................................................................
September......................................................................................
October................................ . ...........................................................
November........................................................................................
December........................................................................................
Total.......................................................................................
Tens.
Twenties.
Total.
$214,800
$110,200
$325,000
$512,700
260,000
480,000
480,000
480,000
160,000
1,472,700
900,000
400.000
640,000
2,280,000
1,660,000
200,000
2,040,000
560,000
80,000
720,000
1,760,000
1,120,000
680,000
1,360,000
6,080,000
3,340,000
5,752,700
3,974,800
4,430,200
14,157,700
The issue of Federal Reserve notes covered by gold is not a matter
of any profit to the Reserve Bank, but is an expense equal to the
cost of printing and shipping them. Experience has shown that
this amounts to about 1 cent a note. As notes issued under these
circumstances are for the benefit of the public, it has been suggested
that the Government assume the cost of issuing them.
VII. Internal Management of the Bank.
BOARD OF DIRECTORS.
In December, 1916, M. J. Murphy, of Clarks Green, Pa., was
reelected a class A director of the Federal Reserve Bank by the
member banks in group 3, for a term of three years ending December
31, 1919, and Alba B. Johnson, the only nominee for class B director,
was reelected by the member banks in group 1 for a similar term.
In connection with the election of directors, it is interesting to note
that as. a fesult of the grouping of banks as required by the Act,
group 1 contains 210 banks having capital and surplus of $137,748,000,
or 79 per cent of the capital and surplus of all member banks in the
district; group 2 has 211 banks with capital and surplus of $26,217,000,
or 15 per cent of the total; and group 3, 211 banks with capital and
surplus of $9,653,000, or 6 per cent of the total for all the member
banks.
A number of changes have occurred during the year among the
class C directors. The term of George M. LaMonte, of Bound Brook,
N. J., expired December 31, 1915. By the transfer of the northern
part of New Jersey, in which Mr. LaMonte resided, to the New York
Federal Reserve district, he became ineligible for reappointment
and Vance C. McCormick, of Harrisburg, Pa., was appointed to
succeed him as a director, while George W. Norris, a member of the
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
25
Board, was appointed deputy Federal Reserve Agent and deputy
chairman. Mr. McCormick retired in July and J. Davis Brodhead,
of South Bethlehem, Pa., was appointed in September. In August
Mr. Norris resigned to become Commissioner of the Federal Farm
Loan Board, and Henry B. Thompson, of Wilmington, Del., was
appointed to his place and designated as deputy Federal Reserve
Agent and deputy chairman. Mr. Thompson has since been
appointed by the Board to serve for a three-year term, ending
December 31, 1919.
The men who retired from the board were experienced in financial
and commercial affairs; were highly esteemed as colleagues and re
spected as counsellors; and the severing of their connection with the
board was the cause of the deepest regret to their associates.
With one or two exceptions in midsummer, meetings of the board
of directors and of the executive committee have been held regu
larly during the year. All the loans and investments made were sub
mitted to and acted upon by them, and discount rates and all other
matters of importance affecting the operation of the bank were con
sidered by them. The directors have manifested, at all times, a deep
interest in the bank and have given much consideration to its affairs.
CHANGES IN OFFICIAL AND CLERICAL STAFF.
Thomas Gamon, jr., formerly chief clerk of the bank, was elected
assistant cashier in January, 1916.
There were 89 employees of the Reserve Bank at the end of the
year, as compared with 45 at the beginning; 28 men were added to
the force of the transit department; 2 to the teller’s department; 5
to the bookkeeping department; 1 to the auditing department; and
2 were regularly assigned to handle the work incident to Govern
ment deposits.
The clerical staff has rendered faithful and efficient service. In
solving the many problems in connection with the development of
the operations of the institution, especially in connection with the
inauguration of the check collection system, which involved a large
amount of extra service, excess hours of labor were cheerfully given
and all the work most satisfactorily performed, evidencing the hearti
est cooperation of officers and clerks.
WORK OF THE FEDERAL RESERVE AGENT’S DEPARTMENT.
On January 15, 1916, the Federal Reserve Board authorized the
appointment of an assistant to the Federal Reserve Agent, and
Arthur E. Post was appointed to the position.
The local office of the Federal Reserve Board has been maintained
in the Federal Reserve Bank as required by the Act, with a sufficient
26
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
force to do the work in connection with the issuing of notes, making
of reports, and other matters pertaining to the office.
VIII. Transit Department Operations.
The number of items handled by this department has increased
rapidly, partly because of the gradual increase in the number of
banks using the system. Chart 11, together with the following
tables, shows the average number and amount of items handled
daily and the total number and amount handled each month. During
June, the last month of operation of the system then in force, a
daily average of 6,298 items were handled, as compared to 31,299 in
December under the new plan.
Transit department operations.
Average number of items handled daily.
On Philadelphia
banks.
Month.
1916.
January..........................
February.......................
March.............................
April...............................
May.................................
June................................
July 1 to July 14.........
July 15* to July 31...
August...........................
September....................
October..........................
November.....................
December......................
On country banks
in this district.
On banks in other
reserve districts.
Total.
Num
ber.
Amount.
Num
ber.
Amount.
Num
ber.
Amount.
Num
ber.
Amount.
1,272
1,262
1,087
1,155
1,247
1,503
1,684
2,322
3,438
5,695
8,279
8,941
8,957
$1,740,933
1,746,935
2,081,444
2,373,427
2,560,451
2,671,149
3,356,974
3,957,102
4,497,927
5,735,277
7,667, 741
8,084,550
9,025,654
4,717
4,612
4,177
4,576
4,443
4,653
4,661
11,437
13,124
12,240
14,066
15,137
16,374
$464,830
432,936
423,187
464,105
459,918
471,700
504,481
1,375,391
1,516,512
1,589,865
1,754,711
1,806,792
2,046,101
85
87
127
170
178
142
166
968
3,051
5,011
5,785
5,568
5,968
$1,417,109
1,974,414
1,819,939
2,141,092
2,024,932
2,501,917
2,958,077
2,793,092
3,317,912
4,099,548
5,196,789
5,885,762
6,610,018
6,074
5,961
5,391
5,901
5,868
6,298
6,511
14,727
19,613
22,946
28,130
29,646
31,299
$3,622,872
4,1.54,285
4,324,570
4,978,624
5,045,301
5,644,766
6,819,532
8,125,585
9,332,351
11,424,690
14,619,241
15,777,104
17,681,773
> The universal par collection system started July 15, 1916.
Total number and amount of checks handled monthly.
On Philadelphia
banks.
On country banks.
On banks in other
reserve districts.
Total.
Month.
Januarv......................
February...................
March..’....................
April..........................
May.............................
June............................
July 1 to July 14...
July 15 to July 31..
August........................
September.... ...........
October......................
November.................
December..................
Num
ber.
Amount.
31,791
29,033
29,341
27, 729
32; 435
39,089
18,521
32,504
92,825
142,385
206/J92
21< 600
223,934
$43,523,325 117,920 $11,620,757 2,136 835,427,723
40,179,514 106,067 9,957,538 i;996 45,411,514
56; 198; 999 112,786 11,426,067 3; 417 49,138,325
56,962,252 109,816 11,138,528 4; 083 51,386,203
66,571,738 115; 526 11,957,845 4,610 52; 648; 237
69,449,871 120; 970 12,264,212 3; 699 65,049,832
36,926,717
51,273 5,549,296 L829 32,538,848
55,399,443 160,123 19,255,471 13,563 39,103,285
121,444,031 354,350 40,945,825 82,389 89,583,625
143; 381, 917 306;006 39, 746,631 125,267 102,488,698
191', 693; 522 351,645 43; 867; 772 144,625 129,919,727
194; 029', 195 .363,280 43,363,005 133,634 141,258,294
225,641,340 409,348 51,152,535 149,206 165,250,451
Num
ber.
Amount.
Num
ber.
Amount.
Num
ber.
Amount.
151,847
137,096
145; 544
141,628
152,571
163,758
71,623
206,190
529,564
573; 658
703,262
711,514
782,488
$90,571,805
95,548,566
116,763,391
119,486,983
131,177,820
146,763,915
75,014,861
113,758,199
251,973,481
285,617,246
365,481,021
378,650,494
442,044,326
Total............... 1,121,179 1,301,401,864 2,679,110 312,245,482 670. 454 999. 204. 762 4,470,743 2,612,852,108
REPORT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA.
27
TPAM5IT DEPARTMENT OPERATIONS- AVERAGE NUMBED OB ITEMS HANDLED DAILY
Federal Reserve Bank ob Philadelphia
1015
1016
NUMbCB
OF ITEMS July|Aug|Scpt|Oct |Nqv|Dec Jan|Beb|Mae|Ape |May|JunePuly|Aug|Scpt|Oct |Nov|Dec of Items
Numbsb
35,000
35000
Items on
30,000
all banks
30.000
ftEMS ON BANKS IN THIS DISTC1CT
...—
35,000
Items on Philadelphia banks
Items on banks in othee distbicts
25,000
20.000
20.000
15.000
15000
10000
1QOOO
X
sooo
z
* •
Zx
'/z
.X*
—
✓
—— —
—
0
5,000
X
0
NOTC -
THE 1NAUGUDAT10N Of THE INTEGDISTEICT COLLECTION SYSTEM ON JULY 15.I91& CAUSED
THE INCEtASE IN VOLUME OF BUSINESS HANDLED IN JULY AND SUBSEQUENT MONTHS
1
Chart 11.
A glance at the chart, which is based upon daily averages, reveals
some striking changes under the.new system. Checks on banks in
other reserve districts show a large increase. These items for the most
part come from Philadelphia member banks, some of which now send
practically all of their foreign items to the Federal Reserve Bank.
The number of items on Philadelphia banks also shows a large in
crease, the greater part of the gain coming from checks received from
other Federal Reserve Banks.
Under the regulations of the Federal Reserve Board for the han
dling of checks on nonmember banks, arrangements have been made
with 143 nonmember banks, outside of Philadelphia, for the collec
tion of their checks. Checks on all nonmember banks in Philadel
phia, amounting to 69, are also handled, making the total number of
nonmember banks whose checks are handled through the collection
system 212.
In organizing the new check collection system, this bank is in
debted to the officers and transit department managers of some of
the Philadelphia member banks for the helpful service they rendered.
o