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SIXTH ANNUAL REPORT of the FEDERAL RESERVE BANK OF PHILADELPHIA FOR THE YEAR ENDING DECEMBER 31, 1920 SIXTH ANNUAL REPORT of the FEDERAL RESERVE BANK OF PHILADELPHIA FOR THE YEAR ENDING DECEMBER 31, 1920 PUBLISHED BY THE FEDERAL RESERVE AGENT OF THE FEDERAL RESERVE BANK OF PHILADELPHIA LETTER OF TRANSMITTAL February 15, 1921. Hon. W. P. G. Harding, Governor, Federal Reserve Board, Washington, D. C. Sir: I have the honor to transmit herewith the sixth annual report on the operations of the Federal Reserve Bank of Philadelphia, covering operations during the year ending December 31, 1920. Yours truly, RICHARD L. AUSTIN Federal Reserve Agent and Chairman. Federal Reserve Bank of Philadelphia Directors and Officers DIRECTORS Class A Joseph Wayne, Jr., Philadelphia, Pa. Francis Douglas, Wilkes-Barre, Pa. M. J. Murphy, N e w York, N. Y. Class B 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, Federal Reserve Agent and Chairman Henry B. Thompson ^ ^ Arthur E. Post, Assistant Federal Reserve Agent - • . George W. Norris, Governor William H. Hutt, Deputy Governor Edwjn s Stuart> D e p u t y C. A. Mcllhenny, Assistant Cashier W. J. Davis, Assistant Cashier J. M. Toy, Assistant Cashier F. W. LaBold, Assistant Cashier R. M. Miller, Jr., Assistant Cashier S. R. Earl, Assistant Cashier Robert D. Stockton, Comptroller Member of Federal Advisory Council Governor William A. Dyer, Cashier Levi L. Rue, Philadelphia, Pa. TABLE OF CONTENTS Introduction Summary of services to member banks Statement of condition Earnings and expenses Reserve position Discount rate changes page 5 7 9 12 .'. 16 16 Loan and discount operations: Summary Rediscounted paper Purchased paper Federal Reserve notes Federal Reserve Bank notes Money department 17 19 20 21 23 28 Clearings and collections: Transit department operations Gold settlement fund Collection department Coupon department Wire transfers of funds Internal organization: directors, staff, building 23 24 24 24 26 26 Banks of the district: Number of banks in district Resources of banks in district Reporting member banks State bank members Department of bank examination Special powers for national banks 28 28 28 29 30 30 Fiscal agency operations: Activities of Liberty loan department Certificates of indebtedness Government deposits Government checks War savings securities 31 31 32 32 32 Appendix CHARTS Assets Liabilities Earnings and expenses Reserve position Movement of earning assets Rediscount transactions with other Federal Reserve banks Federal Reserve notes in circulation Transit department operations >.., 34 10 11 14 15 18 6 22 25 Sixth Annual Report of the Federal Reserve Bank of Philadelphia INTRODUCTION MARKED change took place in the Third Federal Reserve District during the year 1920. During the war period the large amount of L Government securities subscribed for and allotted to this district and the extraordinary business activity incident to the war resulted in demands on our member banks for credit in excess of their capacity to supply them. Borrowings of member banks from this Bank were heavy, which made it necessary, in order to maintain its reserves, to rediscount freely with other Federal Reserve banks for a period of eighteen months ending with May 1920, when the last of its rediscounts matured. Since September 7, it has been rediscounting for other Federal Reserve banks. The borrowings of the members reached their maximum of $255,551,000 on February 19, 1920, from which point they continued to decline until they reached the low point for the year of $184,645,000 on December 15. Since then the borrowings have increased and at the close of the year they amounted to $155,485,000. Government borrowings began to decrease in the spring and with the falling off in Government operations the condition of this Bank began to improve. This improvement was accelerated by the falling off in business activity and the smaller borrowings of member banks. The operations of business favored the movement of gold to this district, resulting in an increase in the gold holdings of this Bank of 63 millions of dollars, or 45 per cent in the course of the year. According to the reports on business conditions in this district, received by us during the closing months of 1919, apparently few years opened with brighter business prospects than 1920. Labor was fully employed at the highest wages probably ever known, manufacturing plants were being operated at the greatest possible limit, supplies of goods were small, prices were continually advancing, the public was buying lavishly and it was generally reported that goods were being consumed as fast as produced. The opinion, almost universally expressed, was that such business conditions would continue for at least six months. These conditions, which had been developing for some months, undoubtedly fostered overbuying and speculation in all kinds of commodities. The advancing costs of materials and wages increased greatly the amount of capital required to conduct business, and the banks were called upon to expand their lines of credit to customers. This only could be done through increased borrowings from this Federal Reserve Bank. However, as it had been a borrower for over a year from other Reserve banks it was hardly in a position to expand its loans, and in order to protect itself the rates of discount were 5 A SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA raised on January 23 to 6 per cent for commercial paper of all maturities and to 5]/2 per cent for paper secured by United States bonds and notes. Commercial paper then was selling at so high a rate as to afford an attractive profit to banks through buying such paper and rediscounting at the Federal Reserve Bank. It was recognized that if this were done the discount rates would have to be raised still higher, which would have put an unnecessary burden upon legitimate borrowing. To avoid any such misuse of the discount privilege, the attention of the member banks was called to the Bank's situation; the intention of the Bank to extend all reasonable accommodation for legitimate purposes was made clear; and the member banks were asked to co-operate with the Bank in carrying out its policy, by refraining from making any but necessary loans, and by making every effort to reduce their borrowings from this Bank. The banks responded most heartily, especially in the matter of reducing their borrowings on Government bonds, with the result that some months before the end of the year the reserve position of this Bank was so greatly improved that it was one of the strongest in the system. The first adverse change in business conditions became apparent early in the spring, coincident with the financial and economic disturbance in Japan, and the collapse of the great speculation in silk in that country. A decrease in the demand for wool became noticeable about this time and lower prices for all kinds of hides, which ultimately affected leather, were reported also. A short time later the feeling was manifest upon the part of the public that most prices for retail goods were too high and a cessation of buying began and continued practically through the balance of the year. The first noticeable break in retail prices occurred when one of the largest retail dealers in this city announced, the latter part of April, a reduction of 20 per cent on all his goods. Thereafter, retail stores generally began REDISCOUNTING T R A N S A C T I O N S BETWEEN FEDERAL RESERVE BANK OF PHILADELPHIA AND OTHER RESERVE BAIMKS i §10 b° in to O 20 £40 so 60 JAN ) FEB | MAP I APR | NE SIGNIFIES I.I i i i . i i i i i n i i n M i l i i n ii JG | 3EPT I QCT EJli^OUNTS OTng.g FEOERAL g&5tgvC 1 BAMKS I I I bee SIXTH ANNTTAL REPORT, FEDERAL RESERVE BAXK OF PHILADELPHIA offering goods at more or less concessions and the decline in retail prices continued. The falling off in retail trade reacted upon jobbers and manufacturers, resulting almost in stagnation of business in some lines and notable reductions in manufacturers' prices. As goods became unsalable, cancellations of orders took place to a heretofore unheard of extent, contracts were repudiated, and many buyers declined to receive goods, forcing their return to the manufacturers or jobbers in large quantities. During the first half of the year transportation conditions were a great obstacle to productive and distributive processes and added to the acuteness of the credit situation by tying up large amounts of capital in commodities in transit. On account of the railroad congestion and much speculative buying for shipment abroad, there was a scarcity of coal and prices advanced to two or three times their normal. Industrial plants were seriously embarrassed in their operations through inability to secure adequate supplies of fuel, and manufacturing costs were considerably increased. A decided improvement in railroad conditions was not effected until September and production could have been increased then, but it was at that time that the more serious effects of price reductions and curtailed buying were being felt and, instead of increasing operations, many factories were being closed or put on part time. The curtailment in manufacturing operations resulted in a large amount of unemployment and reductions in wages. In the latter part of the year some mills started up with reductions in wages of 15 to 22 per cent, and it is reported that the wages of some other classes of labor also have been materially lowered. The figures submitted by R. G. Dun and Company show that there were 419 failures with liabilities of $16,888,034 in the Third Federal Reserve District during 1920. The first seven months were marked by a small amount, but the latter part of the year showed large increases. In 1919 there were 360 failures, but the liabilities were only $6,863,575. Summary of Services to Member Banks In reviewing the services which have been rendered to member banks, it must be remembered that the primary function of the Federal Reserve System is SERVICE. Every operation is carried on with this point in view. Representatives of this Bank who visit the banks of the district make it their duty to explain fully and clearly just what its facilities are and how they should be used. The principal service to member banks is the rediscounting of paper. During the year of 1920 a total of $5,820,258,000 of notes offered to us was rediscounted. Though this turnover is not equal to that of 1919, the average daily holdings of rediscounted bills, due to longer maturities, were nearly equal to last year, the average for the year just closed being $190,122,000 as compared to $193,194,000 in 1919 and $75,556,000 in 1918. May 1920 was marked by the highest average of any month thus far— $212,324,000. In December the average was $166,911,000. 7 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA Bills bought in the open market did not constitute an important part of the year's operations, though considerable quantities of acceptances were purchased from other Federal Reserve banks during the last half of the year. The total amount of acceptances purchased was $76,380,000, and the largest amount held at any one time was $19,880,000 on October 15. On June 30 the holdings of this class of paper were $1,425,000—the low point for the year. In caring for the currency needs of the district, a total of $643,266,000 in notes was paid over the counter, or shipped to member banks without any expense to them, as compared to $389,269,000 in 1919. Receipts of currency from all banks in the two years were as follows: 1920— $570,093,000; 1919—$444,475,000. The circulation of Federal Reserve notes decreased during the first few weeks of 1920, but this trend was soon reversed and from the end of January the circulation increased with minor fluctuations up to the high point of $283,740,000 reached on December 23. A large amount of currency was returned during the last few days of the year following the close of the hoh'day trade. The check clearing facilities of the Bank were used more heavily than in 1919, and the number of checks handled in each month surpassed the corresponding months of that year. A total of 47,298,000 checks, to an amount of $16,327,000,000, was handled in 1920, as compared to 34,886,000 checks, amounting to $13,843,000,000, in 1919. The collection department (handling non-cash items payable at a future date) also reported a heavy increase in business, and 92,651 items were received for collection, as compared to 35,292 in 1919. Shipments of cancelled United States coupons this year amounted to $62,519,000, and to $47,063,000 in the previous year. As a result of the operations through the gold settlement fund the gold holdings of this Bank were increased by $18,673,000 in 1920, whereas in 1919 there was a decrease of $5,733,000. Telegraphic transfers of funds showed little increase, though the number of banks making use of this facility was slightly larger than in the previous year. Exclusive of amounts transferred to New York, which up to November were handled over the telephone, transfers by telegraph were made to the amount of $625,338,000. In addition to these services, certain specialized ones are being rendered regularly to member banks. Carefully prepared reports on business conditions are forwarded to them each month, and reprints of special articles and speeches which will promote a better understanding of the Federal Reserve System are sent to them from time to time. Requests from bankers and business men for data of various kinds are very frequent and the department of statistics and research is often called upon to make special investigations to comply with their requirements. In the course of its routine work, the department of bank examination is enabled to make many suggestions of value. It also has aided national banks opening fiduciary departments with forms and systems of accounting for use in such departments. 8 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA Many of our member banks have made use of the vault facilities offered by this Bank for the safekeeping of their securities. Statement of Condition The outstanding features of the Bank statement at the end of 1920, when compared with previous years, are the increases in the gold holdings and the amount of Federal Reserve notes in circulation, and the decline in the borrowings by member banks. Net deposits show little change. The decrease in bills discounted reflects the downward tendency which had been under way since early in the year. At the close of the previous year the amount of bills discounted held was $209,855,000. At that time, however, this Bank had rediscounted with other Federal Reserve banks member banks' bills to the amount of $27,445,000, so that the total borrowings from this Bank by our member banks was $237,300,000. Bills discounted at the close of this year amounted to $172,383,000. As this included, however, $16,898,000 of bills discounted for other Federal Reserve banks, the total borrowings of the member banks was $155,485,000, showing a decrease in the borrowings of the member banks of $81,815,000, or 34 per cent. A comparative statement of the condition of this Bank at the end of the years 1920, 1919, 1918, and 1917, follows on page 12: SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA CASH RESERVE 29.3% A55E.T5 1919 -S484,106,000 19EO-«49E,E64,000 10 SIXTH ANNUAL BEPOKT, FEDERAL RESERVE BANK OF PHILADELPHIA MEMBER BANK DEPOSITS FEDERAL RESERVE NOTES MEMBER BANK DEPOSITS 22.6% LIABILITIES 1919-5484,106,000 1920-8492,264.000 11 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA Statement of Federal Reserve Bank of Philadelphia (000's omitted) RESOURCES Gold with foreign agencies Total gold held by Bank Gold redemption fund Legal tender notes, silver, etc Dec. 31 1919 Dec. 31 1920 Dec. 31 1918 Dec. 31 1917 $6 087 50.353 264 $1,194 31.679 10,506 $1,051 37.412 408 $19,064 32.101 3.675 $56,704 138,791 8.902 $43,379 88,948 8.448 $38,871 85.583 7,900 $54,840 63.946 1.500 $204,397 993 $140,775 589 $132,354 1.668 $120,286 1.190 $205,390 $141,364 $134,022 $121,476 115.647 56 736 12.689 174.450 35.405 5,177 159.764 19,056 3,0 H 19.981 15.931 18.390 $185 072 1 434 30,461 0 $215,032 1 385 0 30,687 0 $181,831 1.385 0 10.033 0 $54,302 7.102 0 2,548* 10 $216,967 500 67,749 1.300 358 $247,104 500 92.971 1,475 692 $193,249 500 90.853 475 879 $63,962 0 35.709 0 210 $492,264 $484,106 $419,978 $221,357 $8,485 17.010 $7,884 8.805 $7,562 1.304 $6,142 0 $1 222 111.014 51.324 1.447 $5,189 110,541 75,633 9,358 $5,039 99.720 65.918 823 $4,833 84.574 27.467 4,981 $165,007 278 321 22.601 840 $200,721 237.051 28.792 853 $171,500 229.112 8.926 1.574 $121,855 92.977 0 383 $492,264 $484,106 $419,978 $221,357 54.7% 41.0% 43.2% 67.8% 61.6% 43.7% 46.2% 98.2% Bills discounted: All other Bills bought in open market 0 United States Victory notes Municipal warrants Uncollected items and other deductions from gross deposits 5% redemption fund against Federal Reserve Bank notes All other resources LIABILITIES Surplus Other deposits Federal Reserve Bank notes in circulation—net liability All other liabilities Total liabilities Ratio of total reserves to net deposit and Federal Reserve note liabilities combined Ratio of gold reserves to Federal Reserve notes in circulation after setting aside 35% against net deposit liabilities • One-year Treasury nates. Earnings and Expenses The average daily earning assets of this Bank during 1920 were 3,887,000, as compared to $218,038,000 in 1919. This increase, together with the higher rates of return on bills rediscounted and bills purchased, resulted in larger earnings for the year. Comparative rates of return on bills, etc., are given below:1 1919 Bills rediscounted Bills purchased United States securities ' See exhibit 4. 4.13% 4.23 2.13 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA The total earnings for the year were $11,848,551.40, of which 88 per cent was earned on bills rediscounted, 5 per cent on purchased bills, 6 per cent on United States securities, and 1 per cent was derived from sundry sources. Current expenses amounted to $2,176,273.63, leaving net earnings of $9,672,277.77. From the net earnings must be deducted $607,161.46, net debit to profit and loss, giving $9,065,116.31 as the earnings available for dividends, surplus and franchise tax, or 117 per cent on the average capital for the year. This compares with 89 per cent in 1919 and 46 per cent in 1918.l After providing for dividends for the year at the rate of 6 per cent, there was transferred as provided by the Federal Reserve Act, $8,204,774.54 to the surplus fund, and $363,662.54 was paid to the Government as a franchise tax. The profit and loss statement for 1920 follows: Profit and Loss Account for 1920 Gross earnings $11,848,551,40 Total current expenses 2.176,273.63 Current net earnings $9,672,277,77 Debits to current net earnings: Reserve for depreciation on United States securities Banking house premises Vault construction Allother $105.3%.46 198,325.32 448.295.15 1.339.08 Credits to current net earnings 753,356.01 146.194.55 Net debit to current net earnings 607,161.46 Net earnings available for dividends, surplus and franchise tax Distribution of net earnings: Dividends paid Transferred to surplus accounts Paid to Government as a franchise tax 1 $496,679.23 8,204,774.54 363,662.54 See exhibit 2. $9,065,116.31 13 $9,065,116.31 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA MILLIONS OF DOLLARS MILLIONS OF DOLLARS EARNING5 AND EXPEN5E5 1918-1919-192O EXPENSES V////A TOTAL EARNINGS SIXTH AlfNTTAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA FEDERALRESERVEBANKOF PHILADELPHIA MET DEPOSIT LIABILITY, F.R. NOTE CIRCULATION. C4SH RESERVES. AM RESERVERATIOS, 1920. B / so F.R. riOTC CIRCULATION 450 4S0 400 400 ISO 100 SO EDt:R.liOTEUABIUTIES.-L", AM TOTAL RESERVES. "C: JAN. FEB. MAR. APR. MAY JUKE JULY AU6. SEPT. OCT. NOV. DEC. Jfdjusted jvercen£ages ara calculated after increasing or reducing h ^ d b t h t f d i extended, to http://fraser.stlouisfed.org/ 15 Federal Reserve Bank of St. Louis SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA Reserve Position For the portion of the year prior to May 10 this Bank was a borrower from other Federal Reserve banks and its reserve was maintained at about 40 per cent. After that time there was a large increase in gold holdings and a steady improvement in the reserve position. The largest amount of gold held was $214,743,000 on December 13. The highest percentage of reserve shown was 57.07 per cent. During the last four months of the year reserves were reduced by rediscounting for other Federal Reserve banks; had it not been for this the Bank would have shown the maximum reserve of 64.7 per cent on October 11. The position on the last Friday of each month is given below:1 Jan. Feb. Mar. April May June July Aug. Sep. Oct. Nov. Dec. 30 27 26 30 28 25 30 27 24 29 26 30 Total cash Net deposits Federal Reserve note circulation Reserve ratio $131,103,000 139,910.000 141,295,000 139,173,000 140,669,000 155,670.000 156,177.000 175,086,000 178.026,000 191.143,000 185.905.000 202.256,000 $100,295,000 105.177,000 102,055,000 99,838.000 101.133.000 97.360,000 93,950,000 94,117.000 94.944,000 99,639,000 101.619.000 92,550,000 $222,802,000 242.539.000 244,578.000 245,443.000 249.090,000 248.784.000 254,445,000 268,028.000 272,346.000 273,266.000 273.194,000 280.959.000 40.6% 40.2 40.8 40.3 40.2 45.0 44.8 48.3 48.5 51.3 49.6 54.2 Discount Rates At the close of the year 1919 the established rates of discount on the principal classes of paper were as follows: Secured by bonds and notes of trie United States Commercial paper (all maturities) Secured by $%% certificates of indebtedness Secured by 4J4% certificates of indebtedness 4^ \yi 4J4 On January 2, the rate on paper secured by United States certificates of indebtedness was raised to 4% per cent, and on January 23 the rate on commercial paper of all maturities was raised to 6 per cent, and the rate on loans secured by bonds and notes of the United States to 5J^ per cent. On February 26 the minimum rate for loans secured by certificates was made 5 per cent, and beginning with April 22, following the issue of certificates bearing a rate of interest in excess of 5 per cent, the discount rate on paper so secured was made the same as the rate of the certificate but not less than 5 per cent. On January 23, a rate of 5 per cent was established for the discount of endorsed bankers' acceptances; the rate on this class of paper was advanced to 5}4 per cent on April 8 and again to 6 per cent on October 20. The table following gives the changes in detail for the various classes of paper: 1 exhibit 1. Digitized for See FRASER 16 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA Discount Rates Changes during 1920 Member banks' collateral notes: Secured by bonds or notes of the United States.. Secured by certificates of indebtedness Secured by War Finance Corporation bonds 16 to 90 days . Agricultural or live-stock paper: 16 to 90 days Endorsed bankers' acceptances: 5 7 6 6 5 5 AH «i 4K *H 5 16 to 90 days Trade acceptances: 16 to 90 days if May 19 July Oct. 20 r,-n, 16 to 90 days Secured by certificates of indebtedness: 16 to 90 days Commercial paper: A p-n 5K Rediscounts: Secured by bonds or notes of the United States: 16 to 90 days Secured by War Finance Corporation bonds: April 8 Feb. 26 Jan. . ° 5 6 6 5K 5K 6 6 6 • • • • • • • • 5 5 7 7 7 7 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 5 5 5 \? 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 * At rate accruing on the certificate, but not less than 5%. Loan and Discount Operations Loan and discount operations of this Bank during the early months of 1920 were dominated by the unusual demands which the business interests of the district were making upon the banks. As the year progressed, the borrowings declined, in keeping with the smaller commercial needs of the district. There is given below a comparison of the total operations in each class of paper during the years 1918, 1919, and 1920 :l 1920 Bills bought United States securities Totals 1919 1918 J5.964.836.594** 76.380,100** 357.432,400 $10,736,435,270 14.048,447 52.921.500 $1,857,642,720 120,008,026 67.172.050 $6,398,649,094 $10,803,405,217 $2,044,832,796* * Includes $10,000 of municipal warrants. ** Bills discounted for and acceptances bought from other Federal Reserve banks are included. The total turnover of bills for the year was much smaller, but this cannot be taken as indicative of decreased earning assets, as the maturities of the bills were longer in 1920 than in the previous year, as is indicated by the daily average of earning assets which was $233,887,000 this year as compared with $218,038,000 last year. A moderate amount of bills were bought in the open market, the total of such transactions being $41,232,000, as compared to $14,048,000 in 1919, and during the last half of the year a considerable quantity of acceptances was purchased from other Federal 1 See exhibit 5. 17 SIXTII ANJOJAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA i i FEDERAL RESERVE BANK OFPHILADELPHIA. MOVEMENTOFEARNINGASSETS; DURING 1920. i UNITED STATES SECURITIES SO PURCHASED BILLS MELD —1 iQ >• • PERCENTAGE OF WAR FAFER TO TOTAL DISCOUNTS FOR BANKS in DISTRICT 300 DISCOUNTED BILLS. (SEE NOTE BELOW) 300 300 TOTAL EARNING ASSETS JAN. FEB. MAR. APR. MA^UNE JULY AU6\SEPT. OCT. NOV. DEC. ^ ^ y ^ B iJvtal&qitrdiscounted fbrJSanJ&ui&istrict. C.Jotal S C -w cauj 18 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA Reserve banks to strengthen their reserve position. The total of all acceptances purchased from both sources was $76,380,000. The following table, giving the average daily amounts of the total earning assets during the year 1920, with comparative figures for 1919 and 1918, shows the trend of the holdings of this Bank:1 March April July October . . December 1920 1919 1918 $239,284,000 243 612 000 246 229 000 243 502.000 247 113 000 241 705 000 225.736.000 223,678,000 227,742.000 225.147,000 230.358,000 213.420,000 $191,744,000 200.562.000 204 604 000 208.440,000 213 595,000 216 680 000 214,600,000 221,288,000 226,759,000 235,140,000 238.126,000 243,809.000 $56,592,000 53,576,000 58,196.000 63.680,000 69.155.000 77,315 000 88,628,000 102,304,000 114,640,000 138.135,000 189,486.000 197,818,000 $233,887,000 $218,038,000 $101,067,000 The average amount of earning assets during the months of March and May 1920 was larger than during any month of 1919. Rediscounts with other Federal Reserve banks amounted to $371,600,000. The last of these bills matured May 10. By September 7 the Bank's position had so improved that it was able to rediscount for other Federal Reserve banks, with the result that by the close of the year, $144,578,000 of such bills had been rediscounted for other Federal Reserve banks, most of which are located in the agricultural sections of the country. Rediscounted Paper There is given below the total of the rediscount operations of the Bank during the past four years, divided by classes of paper, exclusive of bills discounted for other Federal Reserve banks. All figures are in thousands of dollars: Secured by United States securities 1920 1919 1918 1917 $4,415,454 10,209,981 1.504.637 32.803 Bankers' acceptances $4,129 18 47 Trade acceptances All other Totals $4,790 3,753 5.650 726 $1,395,885 522,683 323,264 189.887 $5,861,490 10,750,483 1.911.284 309,330 The average maturity in 1920 was 13.24 days, as compared to 7.29 days in 1919 and 16.51 days in 1918. At the end of the year the total of the rediscounted paper on hand was $172,383,000, as compared to $209,855,000 at the end of 1919 and $178,819,000 at the end of 1918. Holdings of this class of paper increased during the early months of the year and reached the peak of $218,169,000 on May 15. From that date there has been a more or less continual de1 See exhibit 6. SIXTH ANNUAL KEPORT, FEDERAL RESERVE BANK OF PHILADELPHIA cline to the low of $158,477,000 on November 30, after which small increases occurred.1 To secure figures which are indicative of the borrowings of member banks it is necessary to eliminate rediscount transactions with other Federal Reserve banks. This has been done in the following table, which shows the borrowings of our members on the last day of 1919 and at the end of each month in 1920: Month Secured by U. S. securities 1919 December 1920 January February March April May June July August September October November December All other Total $201,894,000 $35,455,000 $237,349,000 190.826.000 203,033,000 198.037.000 202.530.000 188.258.000 160,342.000 143,161.000 136,557,000 119,424,000 113.455.000 115.819.000 114.066.000 36,765,000 45,731.000 42,965.000 27.373.000 27.354,000 37,348.000 38,541,000 37.890,000 34.506.000 38.587,000 32,849,000 41,417,000 227.591.000 248.764.000 241.002.000 229.903.000 215.612.000 197,690.000 181.702.000 174.447.000 153.930.000 152.042.000 148.668.000 155.483.000 During the year borrowings of member banks secured by Government securities decreased $87,828,000, or 43 per cent; unsecured rediscounts increased $5,962,000, or 17 per cent; and total borrowings decreased $81,866,000, or 34 per cent. At the close of the past year, Government secured borrowings constituted only 73 per cent of the total, whereas the percentage was 85 at the end of 1919. Purchased Paper Purchases of open market paper amounted to $76,380,100, largely made during the last half of the year, of which $35,147,000 of bankers' acceptances were purchased from other Federal Reserve banks. Acceptances in the foreign trade made up the bulk of this paper, together with much smaller amounts in the domestic trade and dollar exchange bills. No trade acceptances were purchased, though a small amount was held over from 1919. The holdings of the various classes of paper on the last Fridays of 1920 and 1919 are given herewith:2 1920 1919 $10,167,152,89 1,376.234.48 1.350.000,00 0 $3,555,043.21 1.122,711 63 0 20.000.00 $12,893,387.37 $4,697,754.84 Bankers' acceptances: Trade acceptances Totals 1 2 . . See exhibit 7. See exhibit 8. 20 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA Our member banks have been encouraged to invest in bankers' bills as affording a high grade of security and a most liquid asset for the banks, and for the purpose of developing a market for them. The latter part of the year, the banks of the district have purchased larger amounts of these bills than at any previous time. Federal Reserve Notes As usual, during the first weeks of the year, there was a return of the Federal Reserve notes issued on account of the Christmas trade. Up to January 20, $17,290,000 in notes were returned, reducing the circulation to the minimum for the year of $219,760,000. After that date the circulation gained steadily and by February 26 had passed the high point of the year 1919. This increase continued with minor fluctuations to $278,736,000 on October 14. A small recession followed, but the demands of the holiday trade made themselves felt and the peak of the year was reached on December 23—$283,740,000. The great bulk of the notes issued were of the $5, $10, and $20 denominations. The total issues to the Bank of the various denominations during the years 1920 and 1919 follow:1 1919 1920 Denominations Amount % Amount % $5 $10 . . . . $20 $50 $100 $500 $1000 $42,780,000 44.380,000 66.460.000 17.200,000 4,800,000 200,000 1,600,000 24.1 25.0 37.4 9.7 2.8 .1 .9 $37,010,000 58.880.000 75,970.000 9,600.000 11,600,000 600,000 2,000,000 19.0 30.1 38.8 4.9 5.9 .3 1.0 Totals $177,420,000 100.0% 100.0% $195,660,000 The following is a statement of the accounts of the Federal Reserve Agent at the close of the last three years: Comparative Statement of the Federal Reserve Agent's Accounts RESOURCES Dec. 31. 1920 Dec. 31. 1919 Dec. 31. 1918 Federal Reserve notes on hand Federal Reserve notes outstanding Federal Reserve notes sent to Comptroller of Currency for destruction. Bills to secure Federal Reserve notes Funds to redeem Federal Reserve notes: Gold coin and certificates on hand Gold redemption fund Gold with Federal Reserve Board $ 25.580.000 $ 21,340,000 $ 17,640,000 291.298.605 247.895,665 241,870.745 64,909.255 363.701.395 241.544,335 162.024,571 165.192,017 159.787.038 17,401.845 121.389.260 14,558,905 74.389.260 13.296,465 72.286,780 Totals $138,791,105 $88,948,165 $85,583,245 Total resources... $981,395,676 $764,920,182 $569,790,283 , LIABILITIES Federal Reserve notes received from Comptroller of Currency (gross). Collateral received from Federal Reserve Bank Total liabilities. See exhibits 9 and 10. $680,580,000 $510,780,000 $324,420,000 300,815,676 254,140,182 245,370.283 $981,395,676 $764,920,182 $569,790,283 21 1918 1919 1920 MIlllON5 eao cao l60 Z40 Z20 Z60 240 220 200 200 180 160 180 140 120 160 140 120 100 100 80 80 60 60 40 40 20 20 FEDERAL RE5ERVE NOTES IN ACTUAL CIRCULATION (LAST DAY OF EACH MONTH) SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA Federal Reserve Bank Notes Federal Reserve Bank notes outstanding at the beginning of the year amounted to $29,052,000; new notes issued during the year amounted to $24,796,000 and notes redeemed to $31,056,000, leaving outstanding at the end of the year $22,792,000. Due to the operations of the Bureau of Engraving and Printing, United States legal tender notes of the smallest denominations took the place to some extent of the Federal Reserve Bank notes.1 The peak of the notes in actual circulation was $22,708,887 on December 18, which compares with a high point of $29,143,707 on December 22, 1919. Money Department January and June were the only months of the year in which the currency deposited exceeded the amounts paid out. The other months showed an excess of amounts paid out to a greater or less degree. In February this excess was particularly heavy. The following table shows the total receipts and payments during 1920 and 1919:2 1920 Receipts... Payments. $570,093,449 643,266.382 1919 $444,475,010 389,269,059 The note counting force averaged 29 persons during the year and handled a total of 71,673,499 pieces of money, the largest monthly total being 7,195,761 pieces in October, or an average of 287,830 pieces on each working day in that month. Clearings and Collections TRANSIT DEPARTMENT OPERATIONS During 1919 all of the banking institutions in this district were brought into the par collection system, and as new banks were organized they have been added to it. At the end of 1920 the 698 member and 439 non-member banking institutions of this district were all on the par list, and in the country as a whole approximately 94 per cent of all the banks had agreed to remit at par for checks drawn upon them. The banks which do not remit at par are all located in the Southern States. The total number of checks (exclusive of Government checks) handled during the year by this department was 47,298,471 to a value of $16,377,199,000, as compared to 34,886,768 checks totalling $13,843,744,000 in 1919. The average daily number of items was 156,617, comparing with 116,289 in 1919. The largest number handled in any one day was 254,850 on October 14.3 1 See exhibits 11 and 12. » See exhibit 13. s See exhibits 14 and 15. 23 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA The following table shows the total amount of checks handled during the past three years: On Philadelphia banks On banks in other reserve districts 1920 1919 1918 $10,466,186,613 3,123.073.591 2.737.939,769 $8,907,672,377 2.129,201,167 2.806.870.819 $6,655,028,275 1.263.933,879 3,373.447,958 $16,327,199,973 $13,843,744,363 $11,292,410,112 GOLD SETTLEMENT FUND During the year payments made by this Bank through the gold settlement fund to other Federal Reserve banks totalled $8,931,016,633, and amounts received by it were $8,949,690,155, leaving a net balance in its favor of $18,673,522.1 This favorable balance was largely accumulated during the latter part of the year and accounts in part for the improvement in the reserve position of the Bank. In 1919 payments made by this Bank through the gold settlement fund exceeded receipts by $5,733,000. COLLECTION DEPARTMENT The year has witnessed a great increase in the use of the facilities afforded by the collection department which handles non-cash items payable at a future date. The total number of the items handled in 1919 was 35,292, as compared with 92,651 in 1920, of a value of $233,309,000.2 The bulk of these items was collected at par, no charge being made by the Federal Reserve Bank for the service, unless one was made by the collecting bank, in which case it was passed on to the depositing bank. There is a charge of 15 cents for each item returned unpaid. During the year there was a slight, but gradual, increase in the percentage of items returned unpaid, and also in the number of items protested. COUPON DEPARTMENT The payment of coupons of United States securities has expanded considerably during the past three years. The following table shows shipments of cancelled coupons.3 1920 1919 1918 Number Amount 9,493.27(1 8,258,108 2.728,361 $62,519,070 47,063,622 11.735.022 Of the 1920 total, 9,441,536 coupons, amounting to $56,462,862.82, were taken from Liberty bonds and Victory notes, and 44,527 coupons, totalling $6,011,001.78 were from United States certificates of indebtedness. The increase over last year has taken place chiefly in the months of January, June, July and December, owing to Victory note coupons payable on June 15 and December 15 and to the many coupons on the various issues of certificates of indebtedness. 1 2 3 See exhibit 16. See exhibit 17. See exhibit 18. 24 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA NUMBER OF ITEMS 1918 1920 J A S O N DJ FMAMJJA50ND NUMBER OF ITEMS 1 180.000 1919 JA5OND J F M A M J 180,000 170,000 170.000 160.000 160,000 150.000 150,000 14Q0OO 140,000 130,000 130.000 120,000 120.000 110,000 110,000 100,000 100,000 90,000 90,000 80.000 80,000 70,000 70,000 60,000 60,000 50.000 50,000 40,000 40,000 30,000 30,000 20,000 20,000 10,000 10.000 KE.Y = = = = ITEMS ITEM5 ITEM5 ITEMS ON ON ON ON ALL BANKS OTHER BANK5 IN PHILA DISTRICT PHILADELPHIA BANKS BANKS IN OTHER DISTRICTS TRANSIT DEPARTMENT OPERATIONS AVERAGE, NUMBER OF ITEMS HANDLED DAILY 25 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA Wire Transfers of Funds The wire transfer facilities offered by this Bank have been used to a moderate extent by the member banks. A total of 9,832 messages were sent during 1920, transferring $625,338,000. This was an average of $2,030,000 daily.1 These figures are exclusive of sums transferred to New York, which were made over the telephone up to November, 1920. Internal Organization Richard L. Austin, Federal Reserve Agent and Chairman of Board of Directors; Henry B. Thompson, Depnty Chairman of Board of Directors; George W. Norris, Governor; William H. Hutt, Deputy Governor; Edwin S. Stuart, Deputy Governor. Board of Directors Name Cla Residence Term c (Group I . Joseph Wayne, jr., president. Girard National Bank, Philadelphia, Pa. Philadelphia, Pa. Dec.31,1920 Wilkes-Barre, Pa. Dec.31,1921 AS Group 2.. Francis Douglas, cashier. First National Bank, Wilkes-Barre, Pa. Clarks Green. Pa. Dec.31,1922 *Group 3. . M. J. Murphy, c/o A. B. Leach & Co., Bankers, New York, N. Y. f Group 1. . Alba B. Johnson, vice-president, Southwark Foundry & Machine Co., Rosemont, Pa. Philadelphia, Pa. Group 2.. Edwin S. Stuart, merchant, Philadelphia, Pa. Philadelphia, Pa. Group 3.. Charles K. Haddon, vice-president, Victor Talking Machine Co., Camden, N. J. Camden, N. J. Dec. 31.1921 Philadelphia, Pa. Richard L. Austin. Henry B. Thompson, president, U. S. Finishing Co., New York, N. Y. Wilmington. Del. Charles C. Harrison. Philadelphia. Pa. Dec. 31.1920 Dec.31,1922 Dec.31.1921 C Dec. 31,1922 Dec.31,1920 Early in the year it was learned with much regret of the impending resignation of Mr. E. Pusey Passmore, as governor of the Bank. His resignation took effect March 1. In reference to it, the following minute was adopted by the board of directors: "The momentous time, and the large services rendered to the country by the Federal Reserve System during the period of Governor E. Pusey Passmore's association with this Bank, has made his connection with it of particular note. "Upon him rested largely the responsibility of three great campaigns for placing the war loans in this district. His services in connection with them were efficient and unwearied. The vast amount of work incident to the war made necessary the reorganization and a very great enlargement of the official and clerical staffs of the Bank and greatly increased the responsibility of the administration of its affairs. To all these matters he gave his ability in full measure, and the efficient way in which the Bank is functioning testifies to the success of this work. "It is with regret that we accept his resignation, and we assure him that he takes with him the highest regard and best wishes of those associated with him here." At the meeting of the board of directors held March 3, Mr. George W. Norris, who was then Farm Loan Commissioner at Washington, was unanimously elected governor of the Bank. Mr. Norris assumed office on April 5. 1 See exhibit 19. 26 SIXTH ANNUAL EEPOET, FEDERAL RESERVE BANK OF PHILADELPHIA No other changes have been made in the official staff during the year. The election for directors of this Bank, which closed November 30, resulted in the re-election of Mr. Joseph Wayne, Jr., of Philadelphia, by Group 1 to serve as a Class A director for a term of three years beginning January 1, 1921, and the re-election of Mr. Edwin S. Stuart, of Philadelphia, by Group 2, to serve as a Class B director for a term of three years beginning January 1, 1921. Messrs. Wayne and Stuart were the only nominees in their respective classes. The Federal Reserve Board reappointed Mr. Richard L. Austin as a Class C director, and as Federal Reserve Agent and chairman of the board of directors for a term of one year. A general increase in the work of the Bank in its various functions necessitated a larger staff of employees. The number increased from 638 on December 15, 1919, to 840 on December 15, 1920. Of this last total, 706 were employed in the regular work of the Bank, and the remaining 134 were connected with the Liberty Loan and other departments engaged in performing the duties as fiscal agent of the United States. The following table shows the number of employees in the various departments: Department Analysis Auditing Bookkeeping and accounting. Building employees Cafeteria Chauffeurs Collections Correspondence Coupon Credit Discount Employment Federal Reserve Agents Filing Guards and runners Library Pages Printing Purchasing Registered mail Secretaries No. of No. of employees employees 1920 1919 22 26 43 54 16 6 14 4 14 12 37 19 21 11 56 2 13 9 6 5 6 II 22 26 36 15 5 7 4 14 0* 36 11 13 9 45 0 9 6 6 3 6 Department Telegraph Telephone Tellers and money counters.. Transit and allied functions.. Vault Wire transfers No. of No. of employees employees 1920 1919 3 5 72 215 9 3 3 56 186 6 4 706 544 11 16 8 14 71 0 14 9 15 16 21 25 Totals 134 94 Grand totals. 840 638 Totals GOVERNMENT Auditing—Liberty loan. . . Government Check Government deposit Liberty loan accounting. . . Liberty loan delivery War loan organization.... War savings 3 • Credit work handled by Federal Reserve Agents' Department in 1919. The growth of the business of the Bank made it necessary to use practically the entire building for bank purposes. After the close of the year, there was only one tenant, other than the Bank, occupying a space in the building. A new vault is under construction which will have an area of 2,134 square feet, providing sufficient space for all of the needs of the Bank, and for the assumption, in the coming year, as provided by the Act of Congress of May 29, 1920, of the Sub-Treasury functions. 27 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA Banks of the District No changes have been made in the district boundary lines during 1920. The number of banking institutions shows an increase, however, from 1,093 at the close of 1919 to 1,137 at the end of 1920. These banks were classified as follows: Members: State banking institutions Total members Non-member State banking institutions AU banking institutions Dec. 31. 1920 Dec. 31, 1919 652 46 640 38 698 678 439 415 1.137 1.093 The total resources of all banks in the district, as of November 15, 1920, were $3,366,743,000, an increase of 12 per cent over the previous year. There was an increase of 7 per cent in the capital and surplus. The figures in the table below give the totals of various items in the statements of these banks: (000's omitted) National banks Number of banks... Capital Surplus Undivided profits... Individual deposits. Bank deposits Total resources 654 $87,294 123,164 37.945 1.179,943 160,193 1,783.068 Member State 46 $24,535 48,216 11.381 263.176 9,074 391,166 All member Non-member State All banks in district 700 $111,829 445 $74,326 87.697 32,278 850.432 1.145 $186,155 259,077 81,604 2,293.551 185,141 3.364.990 171.380 49,326 1.443.119 169,267 2.174,234 15.874 1.190.756 The total resources and combined capital and surplus of the member banks constitute about 65 and 63 per cent, respectively, of the total resources and combined capital and surplus of all banking institutions in the district. REPORTING MEMBER BANKS In accordance with the plan instituted by the Federal Reserve Board some years ago, 56 member banks located in Philadelphia, Carnden, Scranton and Wilmington have been making weekly reports of certain SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA items derived from their statements of condition. In the table below the composite totals for January 2 and the last report of each month are given: COOO's omitted) DEPOSITS LOANS AND INVESTMENTS U.S. securities owned Jan. 2 Jan. 30. Feb. 27.. Mar. 26.. Apr. 3 0 . . May 28.. June 25.. July 30.. Aug. 2 7 . . Sept. 2 4 . . Oct. 3 0 . . Nov. 2 6 . . Dec. 31 Loans All other Loans loans secured secured and by U. S. by other stocks investsecuriand ments ties bonds Total $113,190 $68,428 $209,802 $468,435 $859,855 57.613 202,115 493,871 857.423 103.824 52.401 199.680 509,960 859.433 97,392 55.637 201.940 517,772 869,232 93,883 45.472 199,449 520.230 874,430 109,279 103.282 43.646 198.846 531.082 876,856 37.350 205.278 530,916 860.208 86.664 43.040 203,814 537.212 858.902 74,836 39.769 208.332 552.957 872,570 71.512 39.383 215.059 559.438 881,329 67,449 40.746 211,645 546.432 862.010 63,187 37.899 210,100 540.520 854.580 66,061 38,981 201,856 516,834 828,498 70,827 Reserve with Federal Reserve Bank $59,492 62,062 63,165 64.329 65.800 64,547 66,207 66,331 66.293 68.655 65.211 66.098 69,427 Cash in vault $21,027 15.644 17,387 15.907 15,731 15,775 16.216 15.741 17.603 17.277 18.470 19.866 19,379 Demand Time Gov't Borrowings rrom Federal Reserve Bank $668,657 $22,651 $43,376 $184,563 654,286 26.034 25.550 181,222 651,309 25,951 1,568 205,840 657,111 26.458 986 196,872 659.140 26,673 7.289 184.851 673,682 32,798 4,875 166.901 662,888 32,981 17,918 \ 47.431 666.861 33,290 7.462 140.054 685.727 33.765 7.948 135,184 685.149 35.458 20.126 120.678 679.665 35.749 10.361 113.796 674.872 36,269 5,768 121,245 656,908 33,482 20,597 121,423 The decrease in the holdings of United States securities and loans secured by them and the decline in the borrowings from the Federal Reserve Bank call for special attention. The total loans and investments reached the high point for the year of §886,598,000, on April 16. Up to the fall months there was comparatively little change in this total, but the closing weeks of the year witnessed a marked decline. If we should add the rediscounts with the Federal Reserve Bank to the total loans and investments of the reporting banks, a more accurate reflection of the total volume of bank loans would be obtained, and the resulting totals would show a gradual decline from the spring to the end of the year. The items of demand and time deposits, reserve with Federal Reserve Bank, and cash in vault show no significant changes. Government deposits naturally fluctuated widely. STATE BANK MEMBERS At the close of 1919, 38 State banks and trust companies were members of the system in this district. During the year 9 other institutions were added and two member trust companies consolidated, so that there were 46 member State institutions at the end of 1920. The additions to membership in the past year were as follows:1 City Bank name Allentown, Pa NewOiford.Pa Philadelphia, Pa Reading. Pa Philadelphia. Pa Philadelphia, Pa Tamaqua, Pa Shamokin, Pa Mill Hall, Pa 1 See exhibit 20. Penn Trust Co. Farmers & Merchants Bank. Federal Trust CoNortheastern Trust Co. Oxford Bank of Frankford. Peoples Bank. Peoples Trust Co. Dime Trust & Safe Deposit Co. Mill Hall State Bank. 29 Date of admission January May June July August August September October October 20 12 23 21 4 16 14 9 11 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA DEPARTMENT OF BANK EXAMINATION During the year the Department of Bank Examination participated in 42 examinations of member State banks and trust companies, 5 of which were independent examinations incident to applications for admissions into the system, and 37 examinations were conducted in co-operation with the State banking departments of Pennsylvania, New Jersey and Delaware. All the banks and trust companies examined co-operatively were members of the system with the exception of one bank which was an applicant for admission. The total banking resources of the institutions examined aggregated $210,741,000, in addition to which trust funds totalling $1,553,987,000 were examined by the department. In connection with the granting of fiduciary powers to national banks, this department has given assistance and advice in the installation of adequate systems in the trust departments of banks receiving such powers. Cordial relations exist between the several State banking departments and this Banlc, and the assistance and co-operation received from them is very greatly appreciated. SPECIAL POWERS FOR NATIONAL BANKS During 1920 the Federal Reserve Board approved applications from 29 national banks in this district for the exercise of fiduciary powers. Of this number 22 were located in Pennsylvania, 6 in New Jersey, and 1 in Delaware. 27 banks were granted permission to exercise full powers and 2 were granted partial powers. The total number of banks having these privileges is 123, scattered quite generally over the district. The table following shows the distribution of the total: Totals . . . Full Powers Partial Powers Totals 67 17 3 29 5 2 96 22 87 36 123 5 The national banks have manifested but little interest in the power to accept up to 100 per cent of their combined capital and surplus as allowed by the Federal Reserve Act under the regulations of the Federal Reserve Board, and no applications regarding such powers have been received during the past two years. A total of 8 banks, all of which are located in Philadelphia, possess this right. 30 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA Fiscal Agency Operations The exchange of permanent bonds for temporary bonds, conversions of one issue into another and denominational exchanges have been the chief activities in connection with the various issues of Liberty bonds and Victory notes. A total of 3,589,075 bonds and notes (both temporary and permanent) to a value of $680,533,650 was exchanged or converted during the year. The only issue of Liberty bonds for which permanent bonds were not exchanged was the Fourth, arrangements for which were not perfected before the close of the year. The tables below give the amount of bonds exchanged or converted: Temporary bonds exchanged or converted for permanent bonds Temporary—permanent exchange transactions .1 Conversions (coupon for coupon) Conversions (coupon for registered) Denominational exchange transactions Permanent bonds exchanged or converted for permanent bondi Conversions (coupon for coupon) Conversions (coupon for registered) Denominational exchange transactions Number Par amount 2,099.379 322.075 1,618 487.962 $520,822,300 40.043.400 286,200 51,776,450 2.911,034 $612,928,350 56.269 621,747 $6,863,950 2.250 60.739.100 678.041 $67,605,300 CERTIFICATES OF INDEBTEDNESS The banks of the district have manifested a gratifying response to the offerings of the various issues of United States certificates of indebtedness during the year. The subscriptions received for each issue have been in excess of the quota of the district, and during the last four or five months the amounts allotted have been much less than the total of the subscriptions received.1 The total of the subscriptions to all certificates of indebtedness was $312,334,000, and the amount allotted was $264,323,000, distributed between tax and loan certificates as follows: Loan certificates Tax certificates Total subscriptions Subscriptions allotted $96,149,000 216.185,000 $80,722,500 183.600,500 The total number of banks subscribing to these issues was 999, which was 87 per cent of the banks in the district. Redemptions of certificates through this Bank during the year were $256,857,000. 1 See exhibit 22. 31 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA GOVERNMENT DEPOSITS The number of special war loan depositories for Government funds at the end of the year was 684. In the following table is given the amount of collateral held and the amount of Government deposits at the end of each month: 1920 March April May July September October Collateral pledged Government deposits $78,138,867.52 49.366.517.52 47.372.730.27 49 906 330 27 47.044.024.46 54 907,724 46 44.550,274.46 46,053,574.46 52,973,274.46 47.165.774.46 43,417,224.46 55.113.324.46 $30,364,791.87 2.10S.880.C0 1.229.625.00 10,008,325.00 6.702.950.60 20.705.450.00 9.094,680.00 8,739,500.00 22.294,478.75 11.102,400.00 3.771.875.00 24.184.194.00 GOVERNMENT CHECKS The Government check department handled a total of 1,918,816 checks amounting to $528,703,755 in 1920. The figures by months follow: 1920 July.. Amount 119,325 131 526 154,408 183 236 171 (.90 $36,690,052.24 49,297.606.53 45,971.104.80 44.172.879.63 60.239,906.60 36.467,163.88 52,581.983.06 66.247,189.39 43.954.241.82 27,430.394.67 34.746.607.87 30,904,624.03 S March April May Number . . 151 565 153,675 140.670 160,801 190.006 205.486 October December Incomplete records for 1919 make a full comparison with that year impossible, but during the last six months a total amount of $351,915,713 in Government checks was handled, which compares with $255,865,040 in the last half of 1920. WAR SAVINGS SECURITIES The Savings Division has been actively instructing the people of this district in the advantages to be gained by the purchases of savings securities. It has formed savings clubs and societies in schools and industrial establishments and has used many other avenues of approach to reach other prospective investors. Sales have not kept pace with those during the war period, even though every effort has been and is being made to 32 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA encourage thrift. The following figures, giving sales in each of the last three years, cover the Third Federal Reserve District with the exception of Southern New Jersey: War Saving, stamps-1918 —1919 —1920.. $41,662,199.75 5.036.774.28 2.083.199.95 $48,782,173.98 War Savings certificates—1918 —1919 —1920 $510,682.60 510.682.60 Total sales (based on current price) $49,292,856.58 Treasury savings certificates are redeemable at the Treasury Department at Washington, and the record is not available here. Estimates of the redemptions to date of the various issues of savings stamps are as follows: 1918—27%; 1919—28%; 1920—17%. 33 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA APPENDIX EXHIBITS 1. Movement of principal asset and liability items 45 2. Earnings and expenses—by months 35 3. Earnings from loans and discounts—by months 35 4. Annual rates of earnings from loans and discounts—by months 36 5. Loan and discount operations—by months 36 6. Average daily earning assets—by months 37 7. Bills discounted held by Bank on last Friday of each month 37 8. Purchased bills held by Bank on last Friday of each month 38 9. Federal Reserve notes issued and in circulation—by months 38 10. Interdistrict movement of notes 39 11. Federal Reserve Bank notes issued and in circulation—by months . . . . 39 12. Federal Reserve Bank notes issued (denominations) by months 39 13. Currency shipments and receipts—by months 40 14. Total number and amount of checks handled—by months 40 15. Average number and amount of checks handled—by months 41 16. Gold settlement fund operations—by months 41 17. Collection department operations—by months 41 18. Shipments of canceled United States coupons—by months 42 19. Wire transfers of funds—by months 42 20. Member State banks and trust companies 43 21. National banks in district—reports of condition 44 22. Certificates of indebtedness issued during 1920 44 34 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA EXHIBIT 2 Earnings and Expenses,"1920 EXPENSES EARNINGS 1920 From investments Deficient reserve Sundry penal- profits ties $887,733 $4,405 $1,893 2,444 4.025 925,553 5.317 1.023.915 2,143 999.064 2,506 6.176 1,053.320 5,564 1.543 8.579 999,269 2,706 967.216 10.141 18.546 961.338 6.273 2,097 3.157 6.784 971,193 1,015.859 2,095 4.475 1.750 3.683 983,636 2,051 3.728 948,374 January.... February. . March April May June July August September.. Dctobcr... November.. December. . Total earnings Expenses of operation EquipTotal ment, reserves, current expenses etc. $106,501 $11,084 12,727 121,034 9,168 128,326 8.157 110,721 8.675 132.258 192.735 119.189 7.921 119.154 119.339 19.453 10.035 121.754 123.130 10.515 11,944 133.440 211.775 252,084 $894,031 932.022 1.031,375 1.007.745 1.060,427 1.010,555 995,902 969,708 981,135 1.022.429 989.069 954.153 Totals, 1920 $11,736,470 $69,150 $42,931 $11,848,551 Note issues and shipments $101 84 255 379 516 38,922 47 119 173 343 405 33,811 $117,685 133.845 137,748 119.258 141.449 350,847 127.122 138,911 131.962 133.988 145.789 497.670 Current net earnings A 1 rate of net earnings $776,346 798.177 893.627 888.487 918.978 659.708 868.78(1 830.797 849.173 888.441 843.280 456,483 116.2% 125.5 128.7 132.2 131.4 96.7 128.4 117.4 128.4 124.5 121.7 64.5 $1,620,167 $480,952 $75,155 $2,176,274 $9,672,277 116.8% 1919 $8,550,650 $25,673 $33,555 $8,609,879 $1,260,243 $352,962 $161,979 $1,775,184 $6,834,695 89.0% 1918 $4,230,955 $29,784 $97,000 $4,357,740 $593,464 $246,938 $246,514 $1,086,916 $3,270,824 46.0% EXHIBIT 3 Earnings from Loans and Discounts for the Calendar Year 1920 Total Earnings I92(j Bills discounted Bills bought United States securities 1920 March April May July October December $802,786 52 841 896 71 941.048.29 924 717 33 982,295.27 924 904.61 850.800.17 827,969.01 831,458.09 862 616 26 812,009.38 817.639.86 $26,541.39 28 296.55 25,381.75 17 095.45 12.890.78 9.730.71 47.992.05 65.003.01 75.216.54 91 919 33 104.676.98 69,329.25 $58,404.79 55.359.66 57,484.76 57,250.98 58,133.86 64.634.28 68.424.36 68.346.73 64.518.53 61.323.29 66.949.42 61.404.42 $887,732.70 925 552 92 1,023.914.80 999.063 76 1,053.319.91 999.269.60 967,216.58 961,338.75 971,193.16 1,015.858.88 983,635.78 948373.53 $11,736,470.37 Totals. 1920 $10,420,161.50 $574,073.79 $742,235.08 Totals, 1919 $7,987,863.54 $67,019.58 $495,767.72 35 1919 $653,831.06 612.824.47 688,063.18 671,874.44 703.429.00 690.662.70 695.148.58 711.871.36 704,573.67 754,576.82 788.096.08 875,699.48 $8,550,650.84 SIXTH ANNUAL EEPOET, FEDERAL RESERVE BANK OF PHILADELPHIA EXHIBIT 4 Calculated Annual Rates of Earnings from Loans and Discounts 1920 Bills discounted 4.72% 5.03 5.33 5.44 5.44 5.49 5.56 5.57 5.69 5.84 5.79 5.78 January February March . April May . lulv October December Averages Bills bought United States securities 4.68% 4.85 5.25 566 5.90 6.04 6 01 5.95 5.99 6.12 6.11 6.06 1920 1919 2.12% 2.12 2.11 2.10 2.12 2.28 2.24 2.28 2.29 2.17 2.12 2.19 4.36% 4.78 4 90 4 99 5.01 5 04 5.05 5.07 5 20 5.32 520 5.24 4.01% 3.98 3 96 3 92 3 87 3 87 3 81 3 78 3 78 3 77 4 02 4.22 5.01% Averages, 1920 5.48% 5.85% 2.18% Averages. 1919 4.13% 4.23% 2.13% 3.94% EXHIBIT 5 Loan and Discount Operations Bills discounted member banks 1920 March . April May July October December Totals 1920 . Discounted paper acquired from other Federal Reserve banks $647,658,480.47 558.269.226.68 542.842,944.77 569.198,702.79 459,999,457.10 496.288.766.58 489.727,126.14 520,882,183.97 418 472,197.43 374.913.501.10 354.670.886.98 387.334,268.16 $48 077 000.00 29,999.840.00 19.300 000.00 47.202.012.00 $5,820,257,742.17 $144,578,852.00 $10,736,435,270.00 Totals. 1919 Bills bought in open market $3,723,239.75 2,250,263.66 1,387,820 72 992,075.88 503 726 72 1 033 530 15 616.084.53 8,057 736 26 1 502 623 83 8,785.355.35 2.742 493 15 9.657.255.15 $41,232,255.15 Open market paper acquired from other Federal Reserve banks $10,014,015.95 10 050 482 78 10.071.800.81 5 011 545 40 $35,147,844.94 $14,048,447.00 TOTALS 1920 United States securities 1920 January.... February... March April May June July August September.. October November.. December. . $5,238,500.00 11.397,500.00 388.000.00 26.514.400.00 1.493.500.00 28.510.000.00 61.286,500.00 29.694.000.00 9.063.000.00 23.624,500.00 145.051.500.00 15.171,000.00 $656,620,270.22 571,916,990.34 544.618.765.49 596.705.178.67 461.996,683.82 525.832.296.73 561.643.726.62 568.684.403.01 477,114.821.26 447.374.996.26 526.776.425.53 459.364,535.31 Totals, 1920 $357,432,400.00 $6,398,649,094.26 Totals. 1919 $52,921,500.00 1919 $686,466,137 643.150,003 839,369,743 920.617,048 947.513,540 1.088.293,030 1.034.505.183 925.992.017 1.020.490.694 1.155.157.238 689.812.281 852.038.303 393 374 361 364 374 378 357 365 348 310 325 341 484 $10,803,405,217 36 Member banks accommodated 494 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA EXHIBIT 6 Earning Assets—Average Daily Amount Totals Bills discounted 1920 Bills bought United States securities 1920 1919 $200,181,794.00 203,426.600.57 208,397,523.52 206.739,972.49 212,324,750.78 205,214,643.43 180,392.625.63 175,458.735.41 178.134.073.68 174.145.654.95 171.018.185.70 166,911,386.78 $6,672,551.41 7.329.650.09 5.703.901.94 3.669.662.63 2.571.884.45 1,965.077.75 9.427.762.69 12.891.523.96 15.319.227.26 17.714.583.45 20,889,651.80 13.486.948.48 $32,430,012.90 32.856,520.69 32,128,351.61 33,092.423.33 32,216.703.22 34,525.450.00 35.915.751.61 35.328.0O9.68 34.283.950.00 33.287.445.16 38,450,166.67 33,022,300.00 $239,284,358.31 243,612,771.35 246.229,777.07 243.502,058.45 247,113,338.45 241,705,171.18 225.736.139.93 223,678.269.05 227.742,250.94 225.147.683.56 230.358.004.17 213,420.635.26 $191,744,551.63 200.562.223.49 204,604,528.82 208,440.030.89 213.595.405.82 216,630,799.42 214.600.141.74 221,288.397.80 226.759,699.84 235.140.228.35 238.126.494.10 243.809,469.86 Averages, 1920 $190,122,306.77 $9,809,869.62 $33,955,559.02 $233,887,735.41 Averages, 1919 $193,194,965.26 $1,581,246.87 $23,262,739.72 January February March April July August September October November December $218,038,951.85 EXHIBIT 7 Bills Discounted Held by Bank (Figures of last Friday of each month) Secured by United States war obligations 1920 January... February.. March.. . April May June July August.... September. October... November. December. Member banks' collateral notes Non-member banks' paper endorsed by members All other bills $77,935,810.00 84,323,890.00 90,540.225.00 118,241,442.90 123.530,316.37 98.362.636.37 93.830.452.00 88,949.594.50 85,935.247.00 76,934.427.00 83.189,890.00 76,080,045.00 $11,359,848.86 10.902,348.86 10,449.348.86 9.566,200.00 9,361,000.00 9.786.100.00 9,559,000.00 9,932.250.00 7.985,750.00 7.143,000.00 7,166.500.00 7,272,800.00 $69,976,263.58 69,800,332.91 62,203,284.58 54.014.533.47 54.555.563.21 53.085,097.12 39,588.506.69 38.474.070.00 37,676.064.00 31,388.577.70 31.256.611.00 32.324.431.75 Otherwise secured and unsecured 1920 Member banks' collateral notes January.... February... March April May June July August September.. $14,000.00 30,000.00 October November.. December. . '56,000.66 Bankers' acceptances $50,000.00 1.789.824.48 2.525,809.28 964.965.85 570.102.65 371,549.44 299.446.28 201,747.71 118.642.70 150.000.00 150.000.00 150.000.00 37 Trade acceptances $768,394.11 510,133.68 576,774.65 448.333.29 752.323.37 815,778.97 713,981.30 332.0W.64 294,025.80 396.717.96 271.193.26 229,268.26 All other bills $35,050,319.37 44,141,649.69 40,390,580.57 25.960.248.18 25.206,605.44 27.999,960.51 36,616.161.42 36,525.881.18 55,275.366.47 59,676.290.48 49,587,239.91 57.456.518.08 Totals 1920 $195,140,635.92 211,468,179.62 206.700.022.94 209.195.723.69 213,975.911.04 190,421,122.41 180.607.547.69 174.415,581.03 187.315,095.97 175.689,013.14 171,621,434.17 173,563,063.09 SIXTH ANNUAL EEPORT, FEDERAL RESERVE BANK OF PHILADELPHIA EXHIBIT 8 Bills Purchased in Open Market and from Other Federal Reserve Banks (Figures as of las t F r i d a y of e ach m o n t h ) Bankers' acceptances Trade acceptances Dollar exchange bills 1920 January February March April May June July August , Dctober November December Totals Foreign Foreign Domestic $5,604,836.65 4,855,167.85 3,978.692.11 2.356.578.39 1.837.731.36 1.608,384.87 9,969.147.33 16,912,313.49 9.843 655.52 16.100.922.56 14.359.321.17 10.167.152.89 $2,000,026.73 1.696.745.33 1,586,512.83 485.855.49 232.234.47 404.134.47 1,385.971.75 2.482.334.65 1.763,025.63 1,815,734.96 1.800.770.51 1,376.234.48 $200,000.00 200.000.00 Domestic $7,824,863.38 6.751,913.18 5.565.204.94 2,842.433.88 2.069,965.83 2.012,519.34 11,405.119.08 19,904.648.14 12,121,681.15 19,251.657.52 17.560.091.68 12.893.387.37 $20,000.00 50,000.00 510.000.00 515.000.00 1.335.000.00 1.400.000.00 1.350.000.00 EXHIBIT 9 Federal Reserve Notes Issued and in Actual Circulation 1920 Outstanding at beginning of month Issued during month Fit notes received Redeemed Outstanding Held by [bank at end of at end of month month In actual circulation at end of the month 1920 Jan.... $247,895,665 Feb... Mar.. Apr... May.. June.. July.. Aug... Sept... Oct.. Nov... Dec... 232,172.545 255.666,690 258,094,075 256,830.965 257,776.725 259.071,130 264,688,655 281,932.455 284,802.405 284,275.405 287,633,405 $9,700,000 34.320.000 11.020.000 8,500.000 8,200,000 11.080,000 14,500,000 26,200.000 12,200.000 9,600.000 13,800,000 I8.3O0.0O0 $9,660,000 "i'M.m $15,763,120 $232,172,545 10.825,855 255,666,690 8.592.615 258,094,075 9,763,110 256.830,965 7.254,240 257.776.725 9.785,595 259.071.130 8,882.475 264,688,655 8.956.200 281,932,455 9.330,050 284.802,405 10.127.000 284.275,405 10,442,000 287.633,405 12,434,800 291.298.605 1919 $8,587,330 $223,585,215 $209,920,560 13.407.815 242,238.875 210,767.920 10,462,940 247.631.135 205.908.750 11,388,030 245,442,935 203,894,048 7.940,930 249,835,795 206,270,405 9,935,505 249,135.625 203,557,125 12,892.770 251.795,885 203,321,135 13,388.657 268.543,798 213.557.150 13,978,885 270.823.520 212,844,835 12,531,470 271.743,935 216,292,593 17,080,115 270,553,290 223.526,065 12.976.930 278.321,675 237.050,650 Denominations of Federal Reserve Notes Issued to Bank During 1920 1920 Jan... Frh Mar.. Apr... May.. June.. July.. Fives Tens Twenties Fifties $940,000 5.480,000 1.980.000 1,380,000 2,400,000 4.520,000 2,860.000 5,560,000 2,600,000 1,000.000 8,000,000 4,900,000 $2,700,000 9,680,000 1.440.000 2.400,000 840,000 2,200,000 4.200.000 7,200.000 3.200.000 800.000 3.800.000 5,920,000 $6,060,000 15,600,000 4.440.000 4.720,000 2,960.000 2.960,000 5.440.000 10.240,000 6.400.000 5.680.0O0 i,800,666 1920.. $42,780,000 Perct 24.1 1919.. $37,010,000 Perct 19.0 $44,380,000 25.0 $58,880,000 30.1 $66,460,000 37.4 $75,970,000 38.8 $17,200,000 9.7 $9,600,000 4.9 Sept.. Oct.. Nov.. Drr 2,000,666 $2,400,000 1,600,000 Hundreds $1,200,000 800.000 1.000.000 1.000,000 2.400,000 800,000 400,000 800,000 6,200.000 1,600,000 38 Five hundreds Thousands $400,000 400.000 $200,666 ' BOO.OOO $4,800,000 2.8 $11,600,000 5.9 $200,000 .1 $600,000 .3 Totals $9,700,000 34,320,000 11.020.000 8.500,000 8.200.000 11.080.000 14.500.000 26,200,000 12.200,000 9.600.000 13.800.000 18.300,000 $1,600,000 $177,420,000 .9 100.00 $2,000,000 $195,660,000 1.0 100.00 SIXTH ANNUAL EEPOET, FEDERAL RESERVE BANK OF PHILADELPHIA EXHIBIT 10 Interdistrict Movement of Notes Received from Boston New York Cleveland Atlanta Chicago St. Louis $6,893,100 71,719,850 14,318.800 12,144.250 3.218,400 6.331,000 2,007,710 Received from Returned to $6,452,650 63.404.650 14,623,000 11,808,750 4,159.150 7.433,500 1.551,065 Total 1920 Total 1919 Returned to $501,500 1,010,050 902.550 2.161.835 $638,750 1,387,950 1.527,350 1,455,530 $121,209,045 $78,299,885 $114,442,345 $94,525,050 Minneapolis Kansas City Dallas San Francisco EXHIBIT 11 Federal Reserve Bank Notes 1920 Outstanding at beginning of month January February March April May June July August September... October November... December., . $29,052,000 28,016,000 25,416.000 20.732,000 19,257,100 19.200.200 19.517.800 19,752,000 20,418,000 21,779.000 21.996,500 22.310,000 Issued during month $1,868,000 1,300,000 2,524,000 1.908,000 1,800,000 2,096,000 1.968,000 2.300.000 3,000,000 1,944,000 1.796.000 2,292.000 Redeemed $2,904,000 3.900.000 7,208,000 3,382,900 1,856,900 1,778,400 1.733.800 1,634,000 1,639.000 1,726,500 1.482.500 1.810.000 Outstanding at end of month $28,016,000 25.416,000 20,732,000 19,257,100 19,200,200 19,517,800 19.752,000 20.418,000 21,779,000 21,996,500 22.310.000 22,792.000 Held by bank at end of month $547,295 217,216 286,750 347.110 309.622 240,504 584.342 526.022 499.658 428,377 223.227 190.871 In actual circulation at end of month $27,468,705 25,198,784 20,445,250 18,909,990 18,890,578 19,277,296 19,167,658 19,891.978 21.279.342 21,568,123 22.086.773 22.601.129 EXHIBIT 12 Federal Reserve Bank Notes Issued 1920 Ones Fives Totals January February... March April May June July August September.. October November.. December. . 1,548,000 476,000 2.220,000 1.300,000 1,400,000 1.496,000 1.248.000 1.700.000 2.400.000 1.600.000 1.500,000 1.732.000 320,000 824.000 304,000 608,000 400.000 600,000 720,000 600,000 600.000 344.000 296,000 560.000 1.868.000 1.300.000 2.524,000 1,908.000 1.800.000 2,096,000 1.968,000 2,300,000 3.000,000 1,944.000 1,796.000 2,292.000 Totalj.. 18.620,000 6.176.000 24.796,000 39 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA EXHIBIT 13 Currency Receipts from and Shipments to Member and Non-Member Banks 1920 January.... February. March... ; April May June July. . August September.. October.... November.. December. . From non-member banks From member banks $44,696,318 27.925.784 38.520.745 44,862.087 38,271,755 47,107,482 49,866.032 47,065.548 49.889.443 50.228,559 51,813.404 57,856.215 $2,542,163 1,206,850 1,475.361 1.815,624 1,318,691 1,428.613 1.757.944 1.735,251 2,020,213 3.029,003 1.856.474 1,783,890 To nonmember banks To member banks 1920 $47,238,481 29,132,634 39.996.106 46.697.711 39,590,446 48.536,095 51.623.976 48.800.799 51.909,656 53.257,562 53.869,878 59,640,105 $33,689,992 60.276.829 48.045.055 46.795.965 48.879.250 47.084.490 53.279.310 60.711.627 57.511.399 64.210.360 55,338.584 67.443.521 Totals, 1920 $548,123,372 $21,970,077 $643,266,382 Totals, 1919 $430,627,999 $13.847.011 $389,045,559 Total shipments Total receipts Shipments Receipts $223,566 $47,191,945 32,030.619 28.172.620 39,959.215 40.681,745 37,295.680 38.394.924 33.425.219 36,468,581 37,026.356 30,064,643 43,763.463 1919 1920 1919 $18,370,300 25.761,150 25.565.400 27 421.050 27.192,000 26.538,600 32 617.025 36.287,240 34,991,090 41 637,000 43,312.472 49,575,732 $33,689,992 60,276.829 48.045,055 46,795,965 48,879.250 47.084,490 53.279.310 60.711,627 57,511,399 64,210,360 55.338,584 67.443.521 $643,266,382 $570,093,449 $389,269,659 $444,475,610 EXHIBIT 14 Report of the Transit Department Total number and amount of checks handled monthly 1920 On Philadelphia banks Number Jan.. Feb... Mar.. April.. May.. June.. July.. Aug.. Sept.. Oct... Nov.. Dec... 1.323,515 1,101,600 1,455.239 1,348,060 1,312,924 1,403,276 1,356,369 1.413.215 1,358,177 1,453,792 1.475.689 1,591,336 Amount $871,701,394 731,403.635 892.548.986 867.762.963 863.298,342 967.274.060 906.745.081 851,331.222 891.032.474 890.265,130 837.101,262 895,722,064 On banks in other On country banks Number 1.640.664 1.387,451 1,810,110 1.790.824 1,723,422 1.950.877 1,909,614 1.738.321 1.831,532 1.927.682 1.858.434 2,110,370 Amount $221,782,880 188.077,822 250,771,848 263.379,400 254.136.689 286,493,104 282,933,530 267,420,047 289,246,950 280.622,953 259.688,959 278.519.409 Number 762.806 622,916 771.504 716.686 709,174 746,540 731,696 709,138 745.460 834,312 821.520 854,226 Amount $236,022,162 190.753,209 260,349,900 236,496.249 219,276.228 242.039,227 235.523.482 226.768.946 233.627.036 233,142.022 217.283.594 206.657,714 Total Number Amount 3,726,985 $ ,329,506,436 ,110.234,666 3,111.967 .403.670.734 4,036,853 .367,638.612 3,855.570 ,336.711,259 3.745,520 .495,806.391 4,100,693 .425,202,093 3,997.679 ,345,520.215 3.860.674 .413,906.460 3.935.169 404.030.105 4.215.786 ,314,073.815 4.155.643 .380,899.187 4.555,932 Totals . .. 16.593,192 $10,466,186,613 21,679,301 $3,123,073,591 9,025.978 $2,737,939,769 47.298.471 $16,327,199,973 40 SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA EXHIBIT 15 Report of the Transit Department Average number and amount per day of checks handled On banks in Philadelphia On banks in other districts On other banks in district Total 1920 March April July October Aver e 52,941 44 064 58.210 53.922 52,517 56,131 52,168 54 354 54.327 58,152 61.487 63,654 Amount Number Amount $34,868,055 29 256 146 35.701,960 34,710,518 34.531,933 38,690,962 34.874.811 32 743 508 35,641,299 35.610,605 34 879 219 35.828.883 65,626 55 498 72,404 71.632 68,937 78,035 73,447 66,859 73,261 77.107 77.434 84.414 $8,871,316 7,523.112 10,030.873 10,535,176 10,165.467 11.459,724 10,882,059 10,285,386 11,569.678 11.224.918 10,820,373 11.140.776 30.512 24,916 30,860 28,668 28.366 29,861 28,142 27,274 29,818 35,372 34,230 34,169 $9,440,886 7,630,128 10,413.996 9,459,850 8,771.049 9.681.569 9,058.595 8,721,883 9,345,081 9,325,681 9,053,481 8.266.308 149,079 124,478 161,474 154,222 149,820 164.027 153.757 148.487 157,406 168,631 173,151 182,237 $53,180,257 44.409,386 56.146.829 54.705.544 53.468.449 59.832.255 54,813.465 51.750.777 56,556,258 56,161.204 54.753.073 55.235.967 54.944 $34,656,247 71.786 $10,341,303 29.887 $9,066,026 156.617 $54,063,576 Number Amount Number Number Amount EXHIBIT 16 Gold Settlement Fund Operations January February March April May June July August September October Vovember December Net loss for month Balance at close $5,793,348.18 $25,885,403.75 32.328.887.55 32,882,034.43 29,364,648.38 37,065,523.42 42.301.637.16 29,147.050.82 38.798,934.91 41.811,997.05 59.951.853.71 63.045,891.51 50,352,274.55 Net gain for month Total disbursements Total receipts J920 $772,038,520.20 690,909,670.86 845,957,463.59 760,152,871.09 700,358,052.89 732.523,108.67 723.542,737.71 743.468.167.99 755,785,386.05 791,843.944.50 713,896,502.38 719.213,730.02 $777,831,868.38 684.466.187.06 845.404,316.71 763.670.257.14 692,657.177.85 727,286,994.93 736.697,324,05 733.816,283.90 752,772.323.91 773.704,087.84 710,802,464.58 731,907,346.98 Totals, 1920 $8,949,690,155.95 $8,931,016,633.33 $53,832,460.15 $35,158,937.53 Totals. 1919 $7,630,713,856.01 $7,636,447,510.62 $25,341,652.55 $31,075,307.16 $6,443,483.80 553,146.88 3.517.386.05 7,700,875.04 5.236,113.74 13,154,586.34 9,65i,884.69 3,013.062.14 18,139.856.66 3.094.037.80 12,693,616.96 EXHIBIT 17 Collection Department 1920 Number of items received City January February March April May July August September... October November... December. . . Totals Number of items returned unpaid Amount of items received for collection Country Total 1,258 982 1,182 1.311 1.373 1.619 1,761 1.528 1.672 2.241 2.264 2.596 4.149 3.810 4.698 4,654 4.567 5.771 7.031 7,634 6,844 7,199 7.745 8.762 5,407 4,792 5.880 5,965 5.940 7,390 8,792 9,162 8,516 9.440 10.009 11.358 96 94 97 125 165 172 214 183 217 226 248 302 628 560 699 717 657 988 1,211 1,383 1,468 1,352 1.420 1.978 724 654 796 842 822 1.160 1.425 1.566 1.685 1.578 1.668 2,280 $4,962,470.22 6,101,312.10 6,978.587.34 4,808.092.36 5.552.709.71 4,821,479.14 6,388,016.29 7.931.686.00 $8,527,538.19 13.041,006.97 12,198,207,72 16,088.683.91 18.627,407.68 15,102.106.00 15,528,791.00 24.346.745.74 $12,364,478.64 14.428,367.66 17.214.767.04 15,297,017.66 13.490.008.41 19,142.319.07 19,176,795.06 20,896,7/0.27 24.180.117.39 22,923.585.14 21,916,807.29 32,278,431.74 19.787 72,864 92.651 2.139 13.061 15,200 Incomplete Incomplete $233,309,471.37 City Country Total City Country * • • • •Department not divided into two sections until May, 1920. 41 Total • • • • SIXTH ANNUAL REPORT, FEDERAL RESERVE BANK OF PHILADELPHIA EXHIBIT 18 Shipments of Cancelled United States Coupons Number I March April May J u |y October December Totals Value 1919 1920 1919 1920 341,208 101.277 793,130 1.136,616 973,181 572,025 301.186 155,076 638,086 1.258.959 833,241 1.154.123 809.098 180,726 834 221 1,269.475 893.145 955.428 762.797 219.533 541,073 1.106.566 869 665 1.051.543 $1,259,666.67 246.973.52 3,801 746 12 7,628.972.04 4.760.996.63 2.620 369.58 831.077.53 327.196.48 3.433.730.02 8.803.868.13 4.724.969.0! 8,624.057.00 $3329,524.60 577 945 00 5 063 665 19 9,137,625.90 5 223 016 26 8 578 430 24 2,919.967.85 635 908 36 4,480,179.53 8.197.451.40 5 633 384 97 8,741,970.70 8.258,108 9,493.270 $47,063,622.79 $62,519,070.00 EXHIBIT 19 Wire Transfers of Funds—Exclusive of Treasury Transfers. Averages Totals 1920 March April May July October November Totals. Number of messages 737 648 841 778 772 863 854 . 903 863 907 841 825 9832 Amount $52,762,257.60 45 069 921 57 57.176.587.32 52.433.667.12 48.637,834.40 52,721,284.19 51,998.199.44 63 561 871 28 51,388,156.09 56,692,383.22 46.987,362.83 45,909.400.96 $625,338,926.02 Number banks making transfers Number of messages Amount 28 29 31 31 30 33 32 34 34 36 35 32 $2,029,317.60 2.048.632.79 2.117.651.38 2,097.346.68 1.945,513.37 2.027,741.69 1.999,930.74 2,444,687.35 2,055.526.24 2,267,695.32 1,957,806.78 1.807.206.28 19 16 20 16 17 20 17 20 23 23 27 19 385 $2,030,321.19 237 SIXTH ANNUAL KEPOBT, FEDERAL RESERVE BANK OF PHILADELPHIA EXHIBIT 20 Member State Institutions—Third Federal Reserve District Location Philadelphia. Pa Lyfcens, Pa Philadelphia, Pa Philadelphia, Pa Camden. N. J Wilmington, D e l . . . . Philadelphia. P a Philadelphia. Pa Wilkes-Barre, Pa Wilmington, D e l . . . . Hazleton. Pa Philadelphia. Pa Cheater, Pa Williamstown, P a . . . Harrisburg, Pa Gloucester, N . J Philadelphia. Pa Princeton, N . J Philadelphia, Pa Philadelphia. Pa Scranton, Pa Wilmington. D e l . . . . Swedesboro, N. J Williamsport. Pa Williamsport. P a . . . . Honesdale. Pa Riverside, N . J Hazleton, Pa Milford, Del DuBois, Pa Reading, Pa Atlantic City. N. J . . Burlington, N. J . . . . Atlantic City. N. J . . Lewistown, Pa Huntingdon, Pa Schuylkill Haven. P a Allentown, Pa NewOjrford. Pa Philadelphia. Pa Reading. Pa Philadelphia. Pa Mill Hall. Pa Philadelphia. Pa Tamaqua, Pa Shamokin, Pa Bank name Girard Trust Company Miners Deposit Bank Philadelphia Trust Co. Commercial Trust Co. Camden Safe Deposit & Trust Co. Wilmington Trust Company Penna. Co. for Insurance on Live3 & Granting Annuities Fidelity Trust Co. Dime Bank. Title & Trust Co. Security Trust & S. D . Co. Markle Banking & Trust Co. Rittenhouse Trust Co. Cambridge Trust Co. Williams Valley Bank Dauphin Deposit Trust Co. Gloucester City Trust Co. Provident Life & Trust Co. Princeton Banking & Trust Co. West Philadelphia Title & Trust Co Colonial Trust Co. American Bank of Commerce Equitable Trust Co. Swedesboro Trust Co. Northern Central Trust Co. Susquehanna Trust Co. Wayne County Savings Bank Riverside Trust Co. Peoples Savings & Trust Co, Milford Trust Co. The Union Banking & Trust Co. Berks County Trust Co. Equitable Trust Co. Burlington City Loan Sc Trust Co. Bankers Trust Co. Lewistown Trust Company The Grange Trust Co. Schuylkill Haven Trust Co. Penn Trust Company Farmers & Merchants Bank Federal Trust Co. Northeastern Trust Co. Oxford Bank of Frankford. The Mill Hall State Bank Peoples Bank People* Trust Co. Dime Trust & Safe Deposit Co. 43 Date admitted Total resources 5. 12. 1. 6. 19, 29. 1917 1917 1917 1917 1917 1917 $66,110,000 908,000 28,517,000 37,344,000 12.451.000 16.423.000 Dec. 31. Jan. 9. Feb. 8, Feb. 1, Feb. 13. Mar. 26, Apr. 12, Apr. 20. Apr. 18, Apr. 19. Aug. 5, Aug. 5. Sept. 3, Sept. 12, Sept. 30, Oct. 23, Nov. 21. Nov. 21, Nov. 30. Dec. 16, Jan. 3, Jan. 13. Mar. 27, Mar. 28, May I, June 20, June 25, July 11. Sept. 27. Oct. 7. Oct. 17, Jan. 20, May 12, |une 23, July 21, Aug. 4. Oct. I I . Aug. 16. Sept. 14, Oct. 9, 1917 918 918 1918 1918 1918 918 918 918 918 918 918 1918 1918 018 1918 1918 1918 1918 1918 1919 1919 919 1919 1919 1919 1919 919 1919 1919 1919 1920 1920 1920 1920 1920 1920 920 1920 920 45,554.000 69,229.000 2,082,000 7,296,000 5.467,000 3,448,000 6,293.000 557.000 4.540,000 800.000 20.419,000 2,467.000 8.298.000 7,289.000 1,740.000 5.39I.00O 940.000 4,921.000 3,211,000 4,306,000 1,890,000 2.983,000 989,000 2.974,000 5,106.000 3,010,000 1,893,000 772.000 858,000 814.000 1.480,000 2,858.000 380,000 4,102,000 867,000 2.255.000 457.000 3.924.000 1,076.000 1.911.000 Nov. Nov. Dec. Dec. Dec. Dec. SIXTH ANNUAL KEPOKT, FEDERAL RESERVE BANK OF PHILADELPHIA EXHIBIT 21 Reports of Condition of National Banks in Third Federal Reserve District September 12 1919 December 31 1919 February 28 1920 June 30 1920 September 8 1920 $843,965,000 $799,829,000 $812,703,000 $867,443,000 $890,436,000 21.276.000 327.390.000 5.697,000 293,318.000 84.273.000 34.467.000 197.861.000 20,402,000 248.388.000 5,839.000 294.348,000 87.991.000 43.738.000 244.083.000 22.524,000 230.538.000 6.060,000 292.125,000 87.154.000 29.455.000 195,168,000 24,219,000 216.674.000 6,182,000 293,063,000 82.886.000 39.053.000 225,851,000 24.346,000 208,415.000 6.251.000 295.573:000 88,929.000 42.887.000 211.883.000 $1,808,247,000 $1,744,618,000 $1,675,727,000 $79,368,000 110.960.000 33.960,000 54.561,000 1.053,787.000 161.331,000 33,455,000 165,694.000 115,131,000 $81,327,000 115.433,000 30.211.000 64.287.000 1,092.741,000 171.736.000 26.325.000 114.516,000 58,042,000 $83,842,000 118.935,000 32,169,000 54.119.000 1,064,981.000 151.509,000 '2.389.000 113,187.000 54.596,000 $85,659,000 121,438.000 32.183.000 54,546.000 1,129.841.000 159.665.000 10.384.000 104.779.000 56,876,000 $86,661,000 122,148.000 35.253.000 55.052,000 1.156.571.000 161,285.000 2,110.000 93.893,000 55.747,000 $1,808,247,000 $1,744,618,000 $1,675,727,000 $1,755,371,000 $1,768,720,000 634 640 643 648 650 RESOURCES Loans and discounts Customers' liability on letters of credit and acceptances U. S. Government securities owned... Stock of Federal Reserve Bank Other bonds, stocks and securities. . . Reserve with Federal Reserve Bank... Other assets . ... Total resources $1,755,371,000 $1,768,720,000 LIABILITIES Capital stock paid in Surplus fund Undivided profits National bank notes outstanding Individual deposits Bank deposits Government deposits Other liabilities Total liabilities EXHIBIT 22 Treasury Certificates of Indebtedness Issued During 1920 L o a n Certificates of I n d e b t e d n e s s I s s u e d Date of Issue E-1920 F-1920 G-1920 H-1920 A-1921 B-I92I C-1921 D-1921 April April April May June July Aug. Nov. 1. 1920 15, 1920 15. 1920 17, 1920 15. 1920 15, 1920 16, 1920 15, 1920 Maturity July July Oct. Nov. Jan. Jan. Aug. May 1. 1920 15, 1920 15. 1920 15. 1920 3, 1921 15. 1921 16. 1921 16. 1921 Rate 5K VA lH Totals . . . Total Subscription Subscription Allotted $13,500,000.00 3.744.0O0.0O 9.756,000.00 8.000.000.00 5,300,000.00 9,742.000.00 19,770,500.00 26.336.500.00 $13,500,000.00 3.744.000.00 9.756.000.00 7,248.000.00 5,300.000.00 9,742.000.00 12,426.000.00 19,006.500.00 $96,149,000.00 $80,722,500.00 Tax Certificates of Indebtedness Issued Date of Issue TD-1920 TM-4-1920 TM-1921 TJ-1921 TM-2-1921 TS-1921 TM-3-1921 TM-4-1921 TJ-2-1921 TD-1921 Jan. Feb. Mar. June July Sept. Sept. Oct. Dec. Dec. 2. 1920 2. 1920 15. 1920 15. 1920 15. 1920 15, 1920 15, 1920 15. 1920 15, 1920 15. 1920 Maturity Dec. Mar. Mar. June Mar. Sept. Mar. Mar. June Dec. 15. 1920 15. 1920 15, 1921 15. 1921 15, 1921 15. 1921 15, 1921 15. 1921 15. 1921 15. 1921 Rate 4K% 4K 4K 6 6 Totals . . . 44 Total Subscription Subscription Allotted $48,300,000.00 10.416,000.00 5.131.500.00 23.200,000.00 4,508,000.00 28,927.000.00 6.219,500.00 29,601.000.00 8,105,500.00 51,776,500.00 $48,300,000.00 10,416.000.00 5.131.500.00 23.200.000.00 4.508.000.00 26.936.000.00 6.138.500.00 13,822,500.00 6,681.500.00 38.466,500.00 $216,185,000.00 $183,600,500.00 Federal Reserve Bank of Philadelphia Movement of Principal Asset and Liability Items during the Calendar Year 1920 (000's omitted) PURCHASED B I L L S DISCOUNTED BILLS Date J,n. Feb 2 9 ... 16 23 30 . . . . 6 13 . 20 27 Mar. 5 12 19 .. 26 Apr. 2 . * 9::..: 16 23 . 30 May 7 June July AUK. ^ Sept 21 28 4 18 25 2 9::: 16 23 30 6 13 20 3 io 17 Oct. zi::::: 1 g 15 22...:. 29 Nov. 5 12 19 £O... . 10 17:::: 23":: Total earning assets Total held $245 642 241'139 233,572 239 035 235 611 237 022 245,816 239 183 250 625 245.640 245 615 244,763 244 232 246 654 245 706 238 806 244,693 244 163 241 326 248.886 247 739 248,353 249 400 251 593 235,363 229 910 227 771 231 012 225 782 223 243 232 756 219:180 227 844 223058 229,015 232,734 230 321 214,549 233032 227 040 227 104 246075 223 170 227.071 $208 495 203,314 195 024 198,732 195.140 196,763 200.299 199,783 211,468 206.894 207,572 207,284 206,700 208.729 205.768 201.314 209,391 209,196 206.244 214.084 212.945 213,976 214 958 216,212 200,144 190,421 188,057 186 421 181,627 175,045 180 608 174.471 177 764 176 568 174.416 179.261 176.951 166 506 187.315 185.893 176.088 189,256 170,973 175.689 181.521 174 452 168,038 171 621 163 787 165.551 167 074 174.068 173.563 229^898 235065 234 900 210304 212.733 213*629 220 705 218:637 Rediscounted with other Federal Reserve banks (1) $25,664 20.050 25.434 31,695 32.790 41,381 47.945 45,819 38,925 28,669 31,215 36.565 35.555 29.363 22,948 29,500 23,375 20.709 7.782 — •3,999 —15 767 —30,617 —31.485 —30,577 —32,384 -32,273 —27,129 —32.550 —24,503 —16,352 —14 760 —16.184 —18.666 —19,796 —21,779 —17,109 Discounted for member banks in t his district Total B Secured by gov't war obligations $234,159 223.364 220.458 230.427 227.930 238.144 248,244 245.602 250,393 235,563 238.787 243.849 242,255 238,092 228.716 230.814 232.766 229,905 214,026 214.084 212,945 213,976 214.958 216.212 200,144 190.421 188.057 186.421 181.627 175.045 180.608 174.471 177,764 176,568 174.416 179.261 172.952 150,739 156,698 154.408 145,511 156,872 138.700 148,560 148,971 149,949 151.686 156.861 147.603 146.885 147,278 152,289 156.454 $199,398 194,453 189,016 191.072 192.062 196.075 202.330 200.148 203,951 194,678 193.664 195.222 198.748 197.236 191,776 196.856 199 606 202,531 190,891 189,880 188.481 187.447 186.209 186,537 170,471 161.234 151,609 146,759 140.499 139.845 142.978 138.296 136.899 136,498 137,356 136,676 135.459 121.206 126.597 118.844 114,544 119.160 107,697 109,691 112,290 112.309 116.467 119.113 116.126 117.771 111,514 116,234 113.922 A Per cent (B-A) 85.2 87.1 85.7 82.9 84.3 82.3 81.5 81.5 81.5 82.6 81.1 80.1 82.0 82.8 83.8 85.3 85.7 88.1 89.2 88.7 88.5 87.6 86.6 86.3 85.2 84.7 80.6 78.7 77.4 79.9 79.1 79.3 77.0 77.3 78.7 76.2 78.3 80.4 80.8 76,9 78.7 76.0 77.6 73.8 75.4 74.9 76.8 75.9 78.6 80.2 75.7 76.3 'urchascd Purchased from other in open Federal Reserve market banks $5,177 5.842 6.065 7,827 7,825 7.861 7.194 7.094 6.752 6.396 5,693 5,491 5.565 4.960 3,972 3,416 2.981 2.842 2.918 2.638 2,592 2,070 2,227 2,052 1.926 2,012 1.425 1.415 1,071 1,496 1,391 1,144 5,359 7,232 8,092 8.839 8.594 8,726 6.927 3.344 4.510 7.355 8.354 9,180 9,746 10.825 10.761 10,562 11,374 13.295 13.620 13.892 12.893 $10,014 10.014 10.014 10.014 10.014 7,130 4,274 11.812 10.050 10,050 5,795 5,195 4.911 13,711 12.525 10.449 10.072 14.833 12.736 10,282 6.998 2.421 1.006 Total held $5,177 5.842 6.065 7,827 7,825 7.861 7,194 7,094 6,752 6.396 5,693 5,491 5,565 4.960 3.972 3.416 2.981 2.842 2.918 2,638 2.592 2.070 2,227 2,052 1,926 2,012 1,425 11,429 11.085 11.510 11.405 11.158 12.489 11.506 19.904 18,889 18,644 14.521 12,122 8.255 18,221 19.880 18.803 19.252 24.579 23.561 21.043 17,560 13.795 14.301 13.620 13.892 12.893 United States securities Total cash reserves Net deposits $31,970 31,983 32,483 32.476 32.646 32,398 38.323 32,306 32,405 32,350 32,350 31,988 31,967 32,965 35,966 34,076 32,321 32,125 32.164 32,164 32,202 32.307 32.215 33.329 33.293 37,477 38,289 33.162 33,070 36,688 40,743 33.551 37.591 34.984 34.695 34.584 34.726 33.522 33.595 32.892 32.795 36,939 33,394 32,130 31,942 31,885 45,984 45,719 32.722 32,881 32.935 32.745 32.181 $140,216 132.024 133.534 130,928 131,103 131,198 136,093 134.113 139,911 138,131 145,948 141,134 141,295 143,266 139.547 138.361 138.853 139.173 137.577 140.693 137.892 140,669 145,387 137,586 139,682 155.671 164.203 162,862 162,827 164,959 156.177 175,361 171,098 173,161 175,084 180.576 188,541 185,869 178,026 187,392 191,610 185.029 195.274 191.144 182.727 192.487 185,075 185,905 213,938 212.138 200.141 202.211 202,257 $109 740 104.230 100,358 105.549 100,295 98,262 99.267 91,522 105,177 99,259 107,208 104,249 102,056 102352 99.077 92.882 100.508 99.838 97,025 103.283 102.398 101,133 106.364 98,897 88,382 97,360 100,846 101,310 92,654 94.662 93.950 97,864 95,259 92,316 94.117 100.416 100,161 81,364 94,944 99,329 99,948 107.949 100.153 99,639 103,819 104,400 103.276 101.619 105,627 101,776 87.816 91.937 92.550 1 —Minus sign indicates paper discounted for other Federal Reserve banks. 2—Adjusted percentages are calculated after increasing or decreasing reserves by the amount of accommodation extended to or received from other Federal Reserve banks. Federal Reserve notes in circulation $232,160 224.322 222.140 220,261 222.802 225.836 238,871 238,059 242,540 242,607 244.544 242.648 244,579 249.002 248.332 246.717 245.238 245.443 244,384 247,696 244,473 249.091 249,225 250,899 247,287 248.785 251,253 252,418 255.772 253.106 254.445 255,765 262,309 262,239 268,028 270.631 276,054 276.039 272.347 270.892 274.065 278.147 273,103 273,266 271,319 272,469 271,054 273.194 272.128 276.146 278.821 283.740 280.960 Reserve percentage Actual Adjusted (2) 41.0 40.2 41.4 40.2 40.6 40.5 40.2 40.7 40.2 40.4 41.5 40.7 40.8 40.8 40.2 40.7 40.2 40.3 40.3 40.1 39.8 40.2 40.9 39.3 41.6 45.0 46.6 46.0 46.7 47.4 44.8 49.6 47.9 48.8 48.3 48.7 50.1 52.0 48.5 50.6 51.2 47.9 52.3 51.3 48.7 51.1 49.4 49.6 56.6 56.1 54.6 53.8 54.2 33.5 34.1 33.5 30.4 30.4 27.7 26.1 26.8 29.0 32.0 32.6 30.1 30.5 32.4 33.6 32.1 33.4 34.3 38.0 40.1 39.8 40.2 40.9 39.3 41.6 45.0 46.6 48.9 49.6 50.3 47.7 52.4 49.8 50.0 51.6 51.4 53.8 58.0 58.2 60.4 63.1 59.6 63.8 61.2 61.3 61.0 56.6 55.4 61.6 61.3 60.0 59.6 58.7
@FedFRASER