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SEVENTEENTH ANNUAL REPORT
OFTTHE

FEDERAL RESERVE BANK
OF

RICHMOND

FOR THE YEAR ENDED DECEMBER 31, 1931




WM. W. HOXTON
Chairman and Federal Reserve Agent

SEVENTEENTH ANNUAL REPORT
OF THE

FEDERAL RESERVE BANK
OF

RICHMOND

FOR THE YEAR ENDED DECEMBER 31, 1931

WM.

W. HOXTON

Chairman and Federal Reserve Agent




DIRECTORS AND OFFICERS
OF THE

FEDERAL RESERVE BANK OF RICHMOND
FOR YEAR 1932
DIRECTORS

ClawB

Paw A
L. E. JOHNSON, 1932,

WM. W. HOXTON, 1932,

D. R. COKER, 1932,

ALDERSON, W. V A .

CHAIRMAN OF THE BOARD,
RICHMOND, V A .

HARTSTOiE, S. C.

FREDERIC A. DELANO, 19M,

W. MEADE ADDISON, 1933,

CHAS. E. RIEMAN, 1933,

DEPUTY CHAIRMAN,
WASHINGTON, D. C.

RICHMOND, V A .

BALTIMORE, MD.

ROBERT LASSITER, 1934,

EDWIN C. GRAHAM, 1934,

JAMES C. BRASWELL, 1934,

WASHINGTON, D. C.

ROCKY MOUNT, N. C.

CHARLOTTE, N. C

OFFICERS
GEORGE J. SEAY,

WM. W. HOXTON,
CHAIRMAN OF THE BOARD AND
FEDERAL RESERVE AGENT.

GoVXfiNOR-

CHAS. A. PEPLE,
DEPUTY GOVERNOR.

R. H. BROADDUS,

J. G. FRY,

DEPUTY GOVERNOR.

ASSISTANT FEDERAL RESERVE AGENT.

J. S. WALDEN, JR^
CONTROLLER.

GEORGE H. KEESEE,

T. F, EPES,

CASHIER.

AUDITOR.

ALBERT S. JOHNSTONE,
MANAGER, PERSONNEL AND SERVICE.

JOHN T. GARRETT,
MANAGER, BANK RELATIONS DBTT.

W. W. DILLARD,
ASSISTANT CASHIER.

EDWARD WALLER, JR.,
ASSISTANT CASHIER.

COUNSEL
MAXWELL G. WALLACE.
MEMBER FEDERAL ADVISORY COUNCIL
HOWARD BRUCE, 1932,
BALTIMORE, MD.

BALTIMORE BRANCH
DIRECTORS
HUGH LEACH, BALTIMORE, MD., 1932.
L. S. ZIMMERMAN, BALTIMORE, MD., 1932.
M. M. PRENTIS, BALTIMORE, MD., 1933.
LEVI B. PHILLIPS, CAMBRIDGE, MD., 1934.
EDMUND P. COHILL, HANCOCK, MD., 1932.
NORMAN JAMES, BALTIMORE, MD., 1933.
WM. H. MATTHAI, BALTIMORE, MD., 1934.

CHARLOTTE BRANCH
DIRECTORS
W. T. CLEMENTS, CHARLOTTE, N. C , 1932.
C. L. COBB, ROCK HILL, S. C , 1932.
ROBT. GAGE, CHESTER, S. C , 1933.
W. H. WOOD, CHARLOTTE, N. C , 1934.
C. A. CANNON, CONCORD, N. C , 1932.
J O H N A. LAW, SPARTANBURG, S. C , 1933.
J O H N LINDSAY MOREHEAD, CHARLOTTE, If. C , 1934.

OFFICERS
HUGH LEACH, MAN-AGING DIRECTOR.
J O H N R. CUPIT, CASHIER.
J. A. JOHNSTON, ASSISTANT CASHIER.
F. W. WRIGHTSON, ASSISTANT CASHU*.




OFFICERS
W. T. CLEMENTS, MANAGING DIRECTOR.
R. L. CHERRY, CASHIER.

FEDERAL RESERVE BANK
OF RICHMOND

March 19, 1932.
THE FEDERAL RESERVE BOARD,

Washington, D. C.
GENTLEMEN :

I have the honor to submit herewith the Seventeenth
Annual Report of the Federal Reserve Bank of Richmond,
for the year ended December 31, 1931.




Respectfully,
WM. W. HOXTON,

Chairman of the Board and
Federal Reserve Agent.

COMPARATIVE STATEMENT OF CONDITION
RESOURCES

RESERVES:
Gold with Federal Reserve Agent
Gold Redemption Fund—F. R. Notes
Gold Settlement Fund
Gold Coin and Certificates..

Dec. 31, 1931
$ 78,870,000.00
2,017,750.00
7,813,382.95
5,658,409.50

Dec. 31, 1930
$ 83,150,000.00
2,374,700.00
18,231,258.24
9,464,127.50

Total Gold Reserves
Legal Tender Notes, Silver, etc
Total Reserves
NON-RESERVE CASH:
National and Federal Reserve Bank Notes
Subsidiary Silver, Nickels and Cents

$ 94,359,542.45
7,095,165.00
$101,454,707.45

$113,220,085.74
6,903,012.00
$120,123,097.74

$ 2,309,750.00
1,433,149.54

$ 3,250,720.00
1,304,758.05

Total Non-Reserve Cash
EARNING ASSETS:
Bills Discounted—Secured by U. S. Gov. Obligations
Bills Discounted—Non-Members Secured by Adjusted
Service Certificates
Bills Discounted—All Other

$ 3,742,899.54

$ 4,555,478.05

$ 6,823,837.51

$ 3,226,473.85

26,553,347.29

8,763.00
19,530,958.40

Total Bills Discounted
Bills Purchased in Open Market
United States Government Securities
Federal Intermediate Credit Bank Debentures

$33,377,184.80
10,098,975.31
19,080,500.00
700,000.00

$22,766,195.25
10,936,375.12
13,907,100.00

Total Earning Assets
UNCOLLECTED ITEMS:
Transit Items
Exchanges for Clearing House
Other Cash Items
Federal Reserve Notes of Other F. R. Banks

$ 63,256,660.11

$ 47,609,670.37

$ 36,007,146.57
859,765.80
361,149.92
1,884,720.00

$ 36,598,419.17
1,324,615.97
217,670.88
2,265,800.00

Total Uncollected Items
MISCELLANEOUS:
Interest Accrued
Fiscal Agency Expenses, Reimbursable
Bank Premises, Richmond and Baltimore)
Claims Account Closed or Suspended Banks
Participation in Due from Foreign Banks
All Other Resources

$ 39,112,782.29

$ 40,406,506.02

$

$

Total Miscellaneous Assets
TOTAL RESOURCES

5,643.14
1,510.74
3,605,222.67
2,783,620.28
346,478.66
42,014.76

5,298.23
1,112.02
3,249,291.60
925,897.93
29,548.77
36,730.04

$ 6,784,490.25
$214,351,539.64

$ 4,247,878.59
$216,942,630.77

$ 5,478,150.00
11,482,816.30

$ 5,801,350.00
12,113,588.51

Total Capital
DEPOSITS:
Member Banks—Reserve Accounts
United States Treasurer
Participation in Due to Foreign Banks)
Officers' Checks and Drafts
Other Deposits

$ 16,960,966.30

$ 17,914,938.51

$ 47,255,464.19
1,641,563.49
3,074,333.99
392,033.78
206,804.70

$ 60,819,581.33
444,252.15
241,455.21
133,704.71
33,696.80

Total Deposits
DEFERRED AVAILABILITY CREDITS:
United States Treasurer
All Other Transit Items

$ 52,570,200.15

$ 61,672,690.20

$ 1,461,030.15
33,071,404.41

$

Total Deferred Availability Credits
NOTE CIRCULATION:
F. R. Notes in Actual Circulation
MISCELLANEOUS:
Reserve for Expense Accrued and Unpaid
Reserve for Self Insurance
Reserve for Undetermined Losses
Reserve for Depreciation on U. S. Securities
Unearned Discount
All Other Liabilities

$ 34,532,434.56

$ 36,110,534.98

$109,346,920.00

$100,516,210.00

$

$

CAPITAL:
Capital paid in
Surplus

LIABILITIES

Total Miscellaneous Liabilities
TOTAL LIABILITIES




$

2,717.96
400,000.00'
262,174.61
133,766.56
99,882.23
42,477.27
941,018.63

$214,351,539.64

792,042.89
35,318,492.09

3,402.75
400,000.00
264,000.00
60,313.42
540.91

$

728,257.08

$216,942,630.77

SEVENTEENTH ANNUAL REPORT
FEDERAL RESERVE BANK OF RICHMOND

GENERAL BUSINESS CONDITIONS
STATISTICAL SUMMARY
Debits to Individual Accounts (24 Cities) $
Number of Commercial Failures, 5th
District
Liabilities Involved in Failures
Cotton Consumption, 5th District Mills
(Bales)
Cotton Grown in 5th District (Bales)....
Cigarettes Manufactured in 5th District
Total Taxes on Tobacco Products, 5th
District
Tobacco Grown in 5th District (Pounds)
Farm Value, All Crops in 5th District....
Building Permits for All Work (32
Cities)
Value of Permits for All Work (32
Cities)
Value of Contracts Awarded, 5th District
Total Sales, 34 Department Stores, 5th
District
Total Sales, 63 Wholesale Firms in 5
Lines
Bituminous Coal Mined in 5th District
(Tons)

1931

1930

13,539,560,000$ 15,592,029,000

$

1,574
34,880,659 $
2,507,332
1,833,000
99,992,193,000

$
$

2,375,299
1,818,000
104,539,883,450

330,315,141 $
681,734,000
352,113,000 $
34,484

$

80,739,801

1,572
32,806,719

343,885,497
817,651,000
483,051,000
35,091

$

97,992,273

$

243,595,366 $

352,912,092

$

107,726,854 $

115,013^920

$

41,321,045 $

49,353,307

111,369,000

134,651^000

The depression which began in the fall of 1929 in the United
States and which was felt seriously in the Fifth Federal reserve
district during the second half of 1930, spread further in 1931,
the year witnessing a steady decline in nearly all business and
industrial activity, accompanied by a progressive increase in unemployment. The statistics at the top of this page tell the story
concretely. Debits to individual, firm and corporation accounts
in the banks of twenty-four cities totaled 13.2 per cent less in
1931 than in 1930. Commercial failures increased last year in
both number of insolvencies and in aggregate liabilities involved.
Tobacco manufacturing in the Fifth district declined from the
1930 level, and taxes on tobacco products paid to the Federal
Treasury decreased in proportion. Tobacco grown in the dis


6

SEVENTEENTH ANNUAL REPORT OF THE

trict decreased 16.6 per cent last year, chiefly due to a reduced
acreage. Building permits issued in cities and contracts
awarded for construction work compared quite unfavorably with
the permits issued and contracts awarded in 1930. Department
store sales as reflected in sales of 34 leading stores in the Fifth
district declined 6.3 per cent in 1931 in comparison with sales in
1930, and wholesale sales by 63 firms in five lines of trade decreased 16.3 per cent. Bituminous coal mined in the Fifth district, chiefly in West Virginia, lacked 17.3 per cent of equaling
the 1930 output, which in turn was low in comparison with other
recent years. The only industry of importance for which figures
are available which made a better record in 1931 than in 1930
was textiles, in which cotton consumption increased 5.6 per cent
last year, but the profits made by the mills were no better than
those of 1930.
In addition to factors of the depression more or less
National in scope, the Fifth district suffered from extremely low
prices for cotton and tobacco. Although there is much manufacturing, mining, etc., in the district, the basis of our economic
structure is agriculture, and with us agriculture means principally cotton and tobacco. The banks of the Carolinas and part
of Virginia are intimately concerned in these two crops, and
when prices dropped to the lowest levels in many years, and
failed by a wide margin to equal costs of production, numbers
of banks, chiefly the smaller institutions, were unable to collect
their loans, became frozen, and were finally forced to close their
doors. In contrast with 1930, which experienced one of the
worst droughts on record, 1931 had splendid weather for crop
growth and harvesting, but this favorable factor was more than
offset by the disastrously low prices received for all agricultural
products. In one respect, farmers were better off last fall than
in 1930, since they raised food and feed crops much more extensively than in the earlier year and therefore did not have to
spend as much money to carry them through the winter, but on
the other hand their debts added to those they were unable to
liquidate in 1930 placed them in an even worse financial position, and made it extremely difficult to arrange for 1932 farming
operations. The cessation of construction work and the low
prices for agricultural products were the chief causes of most
of the depression in the Fifth district in 1930 and 1931.
VOLUME OF BUSINESS

The accompanying table shows the volume of work handled
by the principal departments of the Bank during 1931, as compared with the work handled in 1930:
The volume of work handled in the discount, coin and Fiscal
Agency departments of the Federal Reserve Bank of Richmond



FEDERAL RESERVE BANK OF RICHMOND

ITEMS

1931

1930

Per Cent of
Increase or
Decrease

BILLS DISCOUNTED AND
BOUGHT:

63,044
1,501,760,000

49,768
$ 1,300,739,000

+26.68
+15.45

52,6524000
$10,435,697,000

54,109,000
$12,795,0151000

— 2.69
—18.44

268,234
209,890,000

270,996
231,051,000

— 1.02
— 9.16

160,093,431
654,948,000

177,598,372
789,548.000

- 9.86
-17.05

175,675,181
802,648,000

- 8.88
-18.08

176,635,001
15,603,000

177,008,594
16,149,000

— .21
— 3.38

174,721,935
17,016,000

172,361,422
15.360T000

+ 1.37
+10.78

124,868
$ 5,846,015,-000

138,993
6,725,085,000

—10.16
—13.07

43,764
283,888,000

29,794
124,861,000

+46.89
+127.36

Number
Amount
CHECKS HANDED BY TRANSIT
DEPARTMENT :

Number
Amount
NON-CASH COLLECTIONS
HANDLED:

Number
Amount
CURRENCY RECEIVED AND

COUNTED

(Including

new

notes) :
Number of pieces
Amount
CURRENCY PAID OUT

(In-

cludes redemptions) :
Number of pieces
Amount

160,078,415
657,498,000

$

COIN RECEIVED AND COUNTED

(Includes new) :
Number of pieces
Amount
COIN PAID OUT (Including

redemptions) :
Number of pieces
Amount
TRANSFERS OF FUNDS FOR . . .
MEMBER B A N K S :

Number
Amount
FISCAL

$

AGENCY WORK :

U. S. securities received,
issued, redeemed, cancelled or exchanged:
Number
Amount

in 1931 exceeded that of 1930, but all other departments showed
decreases in the amount of work handled. The number of bills
discounted for member banks or purchased in the open market
rose 26.7 per cent last year, and the daily average holdings of
earning assets was 21.6 per cent more than in 1930. The number of borrowing banks in 1931 was 353, compared with 345
which borrowed from the Bank at some time in 1930. Checks
cleared by the transit department in 1931 declined 2.7 per cent
in number and 18.4 per cent in total amount in comparison with



8

SEVENTEENTH ANNUAL REPORT OF THE

the checks cleared in 1930, and the average amount of each
check decreased 16.1 per cent, falling to the lowest figure since
pre-war years. The number of non-cash collections handled in
1931 was 1 per cent lower than the number handled in 1930,
and the aggregate amount decreased 9.2 per cent, each item,
as in the case of checks cleared, having a lower average value
than in the earlier year. Currency received in 1931 decreased
9.9 per cent in number of pieces and 17 per cent in amount,
and currency paid out decreased 8.9 per cent in number of
pieces and 18 per cent in amount. There were small decreases
in the number and amount of coin received in 1931, but coin
paid out increased 1.4 per cent in number of pieces and 10.8
per cent in amount. Last year witnessed a decline of 10.2 per
cent in the number of transfers of funds made for member
banks, and the aggregate amount transferred was 13.1 per cent
less than in 1930. Fiscal Agency transactions increased materially in both number and amount in comparison with those
of the earlier year.
FINANCIAL RESULTS OF OPERATIONS

The following is a condensed statement of receipts and disbursements for the year 1931:
ITEMS

Average
Average
Daily
Daily
Holdings Earnings
$23,214,470 $2,643
6,834,287
412
25,171,779
1,299

Bills Discounted
Bills Purchased
U. S. Securities Held
Penalties and Miscellaneous Earnings
Totals
$55,220,536
Additions to
Current
Earnings
Total Gross Earnings
Current Expenses
Net Operating Deficit
Account of Reserves, Depreciation, etc
Net Deficit
Dividend Paid
Gross Deficit

260
$4,614

$ 795,652
124,060
390,976

Annual
Rate of
Earnings
.0343
.0182
.0155

78,398
$1,389,086

.0237

Total
Earnings

84,314
$1,473,400
1,491,664
$ 18,264
138,382
156,646
340,360
$ 497,006

$

The average rate of earnings on loans and investments in
1931 was the lowest for any year since the formation of the
Federal Reserve System, and therefore the Federal Reserve Bank
of Richmond showed a deficit on the year's operations. The discount rate was only 3 per cent for most of the year, and the
average income return on bankers' acceptances and Government



FEDERAL RESERVE BANK OF RICHMOND

securities was about 1 per cent for a considerable period. If the
rate of return on earning assets had been as high in 1931 as it
was in 1930, tha Bank would have made a net profit instead of
showing a material deficit. The percentage of gross earnings
derived from the discount of member bank paper was 54 per
cent in 1931, compared with 52 per cent in 1930 and 78 per cent
in 1929. The Bank increased its holdings of Government securities in 1931, and 26.5 per cent of gross earnings came from
these investments. Bills purchased in the open market accounted
for 8.5 per cent of income, while miscellaneous earnings, penalties, etc., produced the remaining 11 per cent. The chart which
follows shows graphically the percentages of gross earnings derived from each of the several sources in 1931 and 1930.
1931

SOURCES OF INCOME
In Percentages of
Total

1930

Current expenses of the Federal Reserve Bank of Richmond
totaled $1,491,664 in 1931, a decrease of $77,370 under $1,569,034
for 1930. Gross earnings of $1,473,400 in 1931 were insufficient
to meet current expenses, and created a net operating deficit of
$18,264, which was charged against surplus. There being no net
earnings, the surplus of the Bank was further debited by $138,382 to care for necessary transfers to depreciation and miscellaneous accounts. Finally, dividend payments on capital stock
totaled $340,360. This amount, plus the transfers to depreciation and miscellaneous accounts and to the operating deficit,
brought the gross deficit on the Bank's operations for 1931 to
$497,006. The surplus, however, remains above 100 per cent of
the subscribed capital. No payment was made to the United
States Government on account of Franchise Tax.
EXPENSES OF OPERATION IN 1931
The expenses of Federal Reserve Banks are incurred in the exercise
of functions prescribed by law, which involve the rendering of services



10

SEVENTEENTH ANNUAL REPORT OF THE

directly to the United States Treasury and to member banks, and through
member banks indirectly to the entire business community—agricultural,
industrial, and commercial.
Federal Reserve Banks—furnish an elastic currency; afford means
of rediscounting commercial and agricultural paper; act as fiscal agents
of the U. S. Treasury Department; pay checks and warrants drawn on
the Treasury of the United States; exercise the functions of Sub-Treasuries in the supply, exchange, and redemption of currency and coin;
effect the ipar clearance of checks on a large majority of the banks of
the country; collect for member banks, maturing notes, drafts, etc.; effect the transfer of funds by telegraph and mail, and make daily settlement between all Federal Reserve Districts; and perform other public
services.
The expenses of conducting the operations of the Federal Reserve
Bank of Richmond for the year 1931, divided according to functions,
were as follows:
CURRENCY AND COIN
The cost of receiving and handling 160,093,431 pieces of currency aggregating $654,947,000, of which 111,000,996 pieces had
been in circulation and had to be sorted
and counted; paying or shipping out 160,078,415 pieces of currency aggregating
$657,498,000; receiving and handling 176,635,001 pieces of coin aggregating $15,603,000; paying or shipping out 174,721,935 pieces of coin aggregating $17,016,000
was
$117,405.83
The shipping charges (postage, expressage
and insurance) on currency and coin to
and from out-of-town members amounted
to
87,461.58
Assessments by the Treasury Department to
cover the cost of printing and maintaining
an adequate supply of new Federal Reserve
Notes and the cost of redeeming and destroying Federal Reserve Notes and Federal
Reserve Bank Notes unfit for circulation,
plus the shipping charges thereon between
the bank and Washington and the shipping
charges on fit F. R. Notes between the
bank and other Federal Reserve Banks
amounted to
99,112.71
Total Cost
LOANS, REDISCOUNTS AND INVESTMENTS
The cost of making discounts and advances
to 353 member banks: 59,411 notes aggregating $1,434,455,000, were received, examined and discounted; 103,648 notes collateral to member bank notes aggregating
$960,663,000 were received, examined and
handled; 10,151 pieces of marginal or excess collateral, aggregating $32,273,000,
were received, examined and handled;
3,633 bankers' acceptances aggregating
$60,557,000 were purchased in the open




$ 303,980.12

FEDERAL RESERVE BANK OF RICHMOND

11

market; includes the cost of special handling accorded 7,631 notes aggregating $65,041,000 paid before maturity and the unearned discount rebated; also includes the
cost of credit investigations, securing and
analyzing commercial and bank statements,
maintaining credit files, etc
$ 52,750.67
The cost of effecting 1,183 transactions in the
purchase and sale (in the open market) of
government securities for out-of-town
banks, aggregating $89,072,000 and the
cost of receiving, verifying and holding securities pledged as collateral to notes, and
for safe keeping, and maintaining the
proper records thereof, as follows: receiving 62,891 pieces aggregating $990,168,000; shipping 63,099 pieces aggregating
$965,247,000; holding in our vaults
throughout the year securities, deposited by
member banks as collateral to discounts or
for safe keeping, ranging from $60,927,000
to $104,837,000 was
$ 13,017.76
Total Cost
$
TRANSIT AND COLLECTIONS
Handling and collecting 50,322,000 checks,
aggregating $10,126,984,000 cost
$182,376.21
Receiving, examining, paying and listing according to Treasury regulations 2,330,000
government checks, aggregating $308,713,000, and shipping them to Washington cost
8,146.52
Handling 1,009,900 checks aggregating $43,590,000 returned unpaid for various reasons cost
18,477.39
Handling 268,234 non-cash collection items
(maturing notes, drafts, coupons, etc.), aggregating $209,890,000 cost
36,446.81
Total Cost
ACCOUNTING
This function includes:
The general books, capital stock records, issuing and recording, official checks, and
the detail daily transcript of the general
account of the Treasurer of the United
States.
The member bank accounts—both reserve accounts and deferred accounts—and the calculation of deficiencies in reserve, if any,
and the assessments of penalties for deficiencies as prescribed by law.
The accounts with other Federal Reserve
Banks, and the operation of the Gold Settlement Fund through which $15,490,712,000 was received from and paid to other
Federal Reserve Banks and branches, the
Treasurer of the United States, and the
Federal Reserve Agent.



65,768.43

$ 245,446.93

12

SEVENTEENTH ANNUAL REPORT OF THE

The transfers of funds for account of member banks of which there were 124,868
aggregating $5,846,015,000.
The accounting involved in making all the
expenditures of the bank.
The accounting and other expenses in connection with closed or suspended banks.
Planning new accounting forms and systems
and making changes in old forms as the
need therefor arises.
Total Cost
$ 131,525.36
FISCAL AGENT OF THE UNITED
Services rendered as Fiscal Agent of the
U. S. Government:
Receiving, proving and crediting to banks,
preparing schedules, cancelling and shipping to Washington 538,733 government
coupons aggregating $9,890,000 cost..... $ 3,107.73
Fiscal Agency work for the U. S. Government principally relating to the issue of
18,504 pieces of government securities
amounting to $147,007,000; the redemption of 8,875 pieces amounting to $48,681,000; the exchange and transfer of
16,022 pieces amounting to $88,199,000;
the redemption of war savings and thrift
stamps 363 pieces amounting to $481; the
receipt of subscriptions and payments for
new issues, the handling of the war loan
depositary accounts, the custody of a stock
of securities ranging from $63,079,000 to
$123,381,000 cost
31,505.98
Total Cost
Reimbursed by the Treasury Department
Net Cost to the Bank

$ 34,613.71
12,925.91

GENERAL EXPENSES—NOT ALLOCATED
TO THE ABOVE FUNCTIONS
Official salaries and supervisory expenses
$134,773.59
Directors' fees and traveling expenses
8,246.06
Governors', Federal Reserve Agents' and Federal Advisory Council conferences
614.96
Our proportion of the expenses of the Federal Reserve Board
28,933.74
Operation of the banking houses at Richmond, Baltimore and Charlotte (includes
salaries of superintendent, mechanics, firemen, janitors, elevator operators, etc., and
rent, light and power, heat, taxes, fire insurance, repairs and alterations, etc.)
166,108.14
The provision of personnel
22,147.41
Legal expenses
9,354.41
Maintaining the general audit of the bank
and branches
24,129.89
Work of the Federal Reserve Agent's Department, including issuance of Federal Re


$

21,687.80

FEDERAL RESERVE BANK OF RICHMOND
serve notes, custody of collateral therefor,
custody of reserve stock of Federal Reserve notes, the examination of member
banks, preparing and publishing the Monthly Review of Business and Agricultural
Conditions, assembling various statistical
data, etc
Bank relation work; visiting and advising,
and conferences with member and nonmember banks
Handling incoming and outgoing ordinary
and registered mail
Protection—Salaries of special officers and
watchmen, and other protective services....
Other general services, including purchasing
of supplies and equipment, operating the
office supplies and stationary stock room,
telephone service, filing and caring for old
records, operating duplicating processes,
salaries of general office boys, operation of
automobile trucks, and repairs to equipment
Shipping charges (postage and insurance) on
securities
Postage on ordinary mail
Insurance—Employees' group life, Employees'
fidelity, Bankers' blanket bond and burglary, Workmen's Compensation, Fire—
equipment and supplies, and Automobile....

13

52,874.06
20,003.30
24,239.50
69,656.97

73,977.52
3,725.84
64,520.24
21,894.28

Total Cost

$ 725,199.91

Total Operating Expense*

$1,493,608.55

•NOTE: The total Operating Expense during 1931 was $1,945.09
more than the total amount of expenditures charges to the Current Expense account of the Bank during the year. The difference represents
the excess of office supplies, printing and stationery, and postage actually used during the year and charged to the proper functions in the
above statement of Operating Expenses, over the amount of such supplies purchased during the year and charged to Current Expense account.

DISCOUNT OPERATIONS

The Federal Reserve Bank of Richmond discounted bills
for member banks totaling $1,434,455,000 in 1931, an increase
of 19 per cent over discounts totaling $1,205,446,000 in 1930.
The average daily amount of paper under discount, which is a
better measure of actual credit needs than the aggregate for the
year, since the same loan may be renewed repeatedly within the
15-day limit, totaled $23,241,953* in 1931, an increase of only
8.14 per cent over the daily average discounts of $21,491,514 in
1930. The banks of five of the six geographical divisions comprising the Fifth district borrowed more extensively from the
reserve bank in 1931 than in 1930, Virginia with a decrease of
16.92 per cent being the exception. The banks of the District of



14

SEVENTEENTH ANNUAL REPORT OF THE

Columbia, which had borrowed little in 1930, led in percentage
increase in 1931 with 107.19 per cent. Maryland member banks
increased their discounting by 43.07 per cent in 1931, South
Carolina banks increased 25.06 per cent, West Virginia banks
increased 18.81 per cent, and North Carolina banks increased
10.77 per cent. In actual amounts, Virginia banks borrowed
most and District of Columbia banks borrowed least at the reserve bank last year. The accompanying table shows by states
the daily average amount of paper under discount at the Richmond bank during 1931 and 1930, with percentages of change
last year.
AVERAGE AMOUNT OF PAPER UNDER DISCOUNT
Per Cent of
1930
1931
STATES
Increase or
Decrease
$ 2,292,230
$ 3,279,452
Maryland
+ 43.07
431,412
893^56
District of Columbia
+107.19
7,961,381
6,614,570
Virginia
— 16.92
3,490,032
4,146,551
West Virginia
+ 18.81
5,896,996
6,532,322
North Carolina
+ 10.77
1,419,463
1,775,202
South Carolina
+ 25.06
$23,241,953* $21,491,514
Fifth District
+ 8.14
T h i s figure, which varies slightly from the average shown on page 8,
is correct. The inaccuracy in the other figure is due to the special method
of calculation used in accruing earnings.

The classes of paper discounted in 1931 were not materially
different from those of 1930. Of the total volume of 1931 discounts, 39.50 per cent was secured by Government securities,
compared with 40.75 per cent in 1930. Member bank notes
secured by eligible paper and rediscounts of secured or unsecured
commercial or agricultural paper made up 60.50 per cent of total
discounts and rediscounts at the Federal Reserve Bank of Richmond in 1931, compared with 59.25 per cent in 1930.
The discount rate on all classes of paper at the Bank was
3Via per cent from the beginning of 1931 until May 15, at which
time it was lowered to 3 per cent. The rate remained at 3 per
cent until October 20, then at 4 per cent for the balance of the
year. The 3 per cent rate in force between May 15 and October
20 was the equal of the lowest rate ever set by the bank.
In most years rediscounts for member banks tend to increase during the late winter and spring months, remain nearly
stationary during the summer, and decline in the fall and early
winter. In both 1930 and 1931, however, the average amount
of paper under discount as the Bank declined during the first
four months of the year, and then showed relatively little change
until fall. In 1931 the low point was reached in April, from



FEDERAL RESERVE BANK OF RICHMOND
AVERACE
In
Uillions

JAN

FEB

MAH

15

AMOUNT OF PAPER UNDER DISCOUNT
By Months in 1931, 1930 4 1929

MAY

APR

JUN

JUL

AUG

SEP

OCT

NOV

DEG

65
60

In
Uillions
65
60

1929 !

55
•!••

55

1929

1 1 Nil

50

50

*5

45

40

40
1931

35

.....

30
25

35
30

iq^i

25
mm-mmmm mm

1?P

20
•
.

15

.

.

.

.

.

.

m»

•HHUM

1931

20

15

10

10

5

5
Lower solid line, 1931; dotted line, 1930; upper solid line, 1929.

which there was a moderate rise to June. July witnessed a recession from the June discounts, and August, although advancing
over July, was also lower than June. With the opening of fall
trade in September, the average daily amount of discounts rose
sharply, went higher in October, and in November reached the
peak for the year with the highest average for any month since
December 1929. The unusual rise in discounts at or near the end
of the past two years was due to borrowing by member banks
to strengthen their cash position in the face of tense situations
brought about by bank failures. In 1931 the increase in discounts in the fall and early winter was so marked that the average daily amount of discounts held during the year exceeded the
average daily amount held in 1930, although the monthly averages were lower in 1931 than in 1930 in eight of the twelve
months of the year.
ACCEPTANCES

Trade acceptances totaling $636,441 were discounted for
member banks in 1931, compared with $513,904 in 1930 and
$1,256,241 in 1929. No bankers' acceptances were discounted
last year, and only $10,350 of this class of paper in 1930.
The Bank purchased bankers' acceptances from member
banks and in the open market less extensively in 1931 than in
the preceding year. Aggregate purchases of acceptances in
1931 totaled $67,305,000, in comparison with $95,292,442 in
1930. Purchases from member banks last year totaled $33,


16

SEVENTEENTH ANNUAL REPORT OF THE

745,000, compared with $46,673,527 in 1930; purchases from
non-member banks and dealers totaled $22,874,000 against $46,938,942 in 1930; and purchases through foreign banks totaled
$10,687,000 compared with $1,679,973 in 1930. Average daily
holdings of open market paper totaled only $6,834,287 last year,
in comparison with $9,931,065 in 1930, and the average rate of
interest was so low in 1931 that the total return on open market
paper held was only $124,060, compared with $281,883 derived
from this class of investment in the preceding year.
CHECK COLLECTIONS

The Transit department handled the smallest physical volume of work in 1931 for any year since 1926, but the number of
checks cleared exceeded the number in all years prior to 1927.
The aggregate amount involved in 1931 transactions was less
than in any year since 1922. The department handled 52,652,000
checks during 1931, compared with 54,109,000 checks in 1930
and 55,730,000 checks in 1929, a record year. The total amount
involved in the checks cleared in 1931 was $10,435,697,000, compared with $12,795,015,000 in 1930 and $14,118,820,000 in 1929.
The average amount of each item handled in 1931 was only $198.
the lowest figure in the history of the reserve bank and 16 per
cent less than the average of $236 per item in 1930. Last year
174,923 items were handled each business day, with an aggregate value of $34,670,090, compared with a daily average of
179,764 items aggregating $42,508,355 cleared each day in 1930.
Of the 52,652,000 items handled in 1931, 4,738,000 were drawn
on banks outside the Fifth reserve district and were forwarded
to other Federal reserve banks and branches, and 2,330,000 items
were drawn on the Treasurer of the United States.
Cash letters forwarded direct to other Federal reserve banks
and branches by member banks in the Fifth district, for collection and credit to the reserve accounts of the sending banks
at the Federal Reserve Bank of Richmond, numbered 206,929
last year, totaling in amount $1,739,713,000, as compared with
201,058 cash letters amounting to $2,073,313,000 sent direct to
other districts in 1930. The direct routing of cash items results
in a saving of transit time in securing credit to reserve accounts
NON-CASH COLLECTIONS

The Collection department of the Federal Reserve Bank of
Richmond, which undertakes to collect notes, acceptances, drafts
and securities for member banks, handled 268,234 items in 1931,
having an aggregate value of $209,890,000, as compared with
270,996 items amounting to $231,051,000 handled in 1930. These
figures show a decrease of only 1.02 per cent in the number of
items handled last year, while the aggregate amount handled
decreased 9.16 per cent, the average amount of the items col


FEDERAL RESERVE BANK OF RICHMOND

17

lected in 1931 being considerably less than in 1930.
GOLD SETTLEMENT FUND

The Federal Reserve Bank of Richmond had a credit of
$18,231,000 in the Gold Settlement Fund at the close of 1930,
but on December 31, 1931, the credit had declined to $7,813,000.
Receipts by the Bank from reserve banks and other sources
through the Fund totaled $7,740,147,000 in 1931, but the Bank
paid out $7,750,565,000, an excess of disbursements over receipts
totaling $10,418,000 during the year. Owing to the huge volume
of transactions passing through this Fund the balance kept is of
course a very fluctuating amount.
The following table shows the total receipts from and payments to other Federal reserve banks on account of daily transit
clearings, with percentages:
(000 omitted)
Districts
Boston
New York
Philadelphia
Cleveland
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
Settlements between
Head Office and
Branches:
Richmond
Baltimore
Charlotte
Totals

Receipts
from

Payments
to

Total
Settlements

$ 138,734
2,353,123
581,671
535,888
333,140
301,733
85,278
14,846
28,757
35,064
74,875
$4,483,109

$ 123,476
2,262,615
630,114
543,169
319,853
328,680
118,589
3,871
26,492
18,387
71,880
$4,447,126

$

262,210
4,615,738
1,211,785
1,079,057
652,993
630,413
203,867
18,717
55,249
53,451
146,755
$ 8,930,235

1,579,100
1,073,715
384,850
$7,520,774

1,434,046
1,163,557
440,062
$7,484,791

3,013,146
2,237,272
824,912
$15,005,565

Percentage
of Total
2.94
51.69
13.57
12.08
7.31
7.06
2.28
.21
.62
.60
1.64
100.

The percentages of settlements with six of the eleven other
reserve banks were higher in 1931 than in 1930, the six being
New York, Philadelphia, Cleveland, Atlanta, Chicago, and
Minneapolis. The aggregate amounts of settlements last year
declined in all districts. None of the percentages changed more
than 1 per cent except the one between Richmond and San
Francisco, which dropped from 3.41 per cent of the total in
1930 to 1.64 per cent in 1931. The Federal Reserve Bank of
Richmond received more from than it paid to Boston, New York,
Atlanta, Minneapolis, Kansas City, Dallas and San Francisco,
while it paid more to than it received from Philadelphia, Cleve


18

SEVENTEENTH ANNUAL REPORT OF THE

land, Chicago and St. Louis. The total of settlements between
Richmond and all other districts was approximately $1,750,000,000 less in 1931 than in the preceding year, a decrease of 16
per cent.
WIRE TRANSFERS OF FUNDS

The Federal reserve banks make transfers of funds for
member banks without cost to the transferring banks, this
service being facilitated by the operation of private leased wires
connecting all Federal reserve banks and branches and the Federal Reserve Board. The Federal Reserve Bank of Richmond
made 124,868 transfers for member banks in 1931, aggregating
$5,846,015,000, compared with 138,993 transfers totaling $6,725,085,000 made in 1930. A total of 133,177 telegrams were sent
or received over the private wire during 1931, compared with
135,179 messages transmitted in 1930. The Bank uses commercial telegraph service extensively in its transactions with
and for member banks, in addition to the operation of the private
leased wire.
CIRCULATION OF RESERVE NOTES

In spite of lower price levels and a generally reduced volume
of business last year, Federal reserve notes in actual circulation
in the Fifth district in 1931 exceeded the notes in circulation in
1930 by about 13 per cent. The average daily circulation was
higher in every month than in the corresponding month of the
preceding year. Banks were of necessity carrying larger
amounts of cash in vaults than usual, but the cause of this rise
was chiefly the hoarding of currency. Average daily circulation
totaled $82,718,000 in 1931, compared with $73,371,342 in 1930.
Circulation followed a seasonal trend last year, declining from
$91,944,916 in January to $67,808,720 in August, and then rising
to a high point of $102,042,967 for the year in December. The
increase in circulation was greater than usual in October, the
average daily amount outstanding in that month exceeding that
of September by $18,125,000. Bank failures and a feeling of
uneasiness engendered thereby accounted for the marked increase in circulation during the last quarter of 1931. The low
average for 1931 reached in August was $4,533,931 above the
low point reached in August 1930, and the high average of December 1931 was $4,823,781 more than the average December
1930 circulation. October and November showed the largest increases in daily average circulation in comparison with the corresponding months of the preceding year, October showing an
increase of $26,006,765 and November an increase of $29,550,000.
CURRENCY AND COIN SERVICE

In supplying banks of the Fifth district with currency and
coin in 1931, the Federal Reserve Bank of Richmond shipped



FEDERAL RESERVE BANK OF RICHMOND

19

$432,744,992 to member banks and $17,930,806 to non-members.
The Bank received $411,824,107 in currency and coin from member banks in 1931, and $64,947,417 from non-member banks.
The total amount of currency and coin shipped to and received
from member and non-member banks in 1931 was $927,447,322,
a sum $126,471,415, or 12 per cent, less than total shipments and
receipts in 1930.
The Federal reserve bank defrays all shipping and insurance charges on currency and coin shipments to and from member banks, and it also pays the charges on remittances from nonmember banks in settlement for cash letters, but all other shipments to and from non-member banks are made at the expense
of the non-members concerned in the transaction. Such other
shipments are usually in the nature of Subtreasury transactions.
RESERVE POSITION

The ratios of cash reserves to note and deposit liabilities
combined were higher at the Federal Reserve Bank of Richmond
in the first four months of 1931 than in the same period of 1930,
but from May 1 to the end of the year the 1931 ratios were lower
than those of the earlier year. The monthly average ratio for
1931 was 67.04 per cent, compared with 73.37 per cent in 1930
and 61.25 per cent in 1929. The highest monthly average for
1931 was reached in April with 83.74 per cent, and the lowest
was 49.17 per cent in October. The low average in October was
due to the unusually large increase in the circulation of Federal
reserve notes in that month. In 1930 the high average was
78.14 per cent in April and the low point was 68.13 per cent in
December. There was a difference of 34.57 points between the
high and low points in 1931, compared with only 10.01 points
between the 1930 high and low averages.
Average daily deposits totaled $65,457,514 in 1931, compared with $67,236,526 in 1930; average daily note circulation
was $82,718,000 in 1931, and $73,371,342 in 1930; and daily
average cash reserves totaled $99,353,639 last year and $103,163,224 in the preceding year. Deposits showed the highest
daily average in August and the lowest in December; note circulation was highest in December and lowest in August; and
cash reserves were highest in April and lowest in October.
CHANGES IN MEMBERSHIP

The number of member banks of the Federal Reserve System in the Fifth district declined during 1931 from 487 to 428
banks. Three banks joined the System during the year, but 62
members were lost through liquidation or failures, and mergers,
with one withdrawal, a net decrease of 59 members. Of the 62
banks lost to membership, 5 were lost by mergers between members, 4 by voluntary liquidations, 8 were absorbed by non-mem


20

SEVENTEENTH ANNUAL REPORT OF THE

ber banks, 1 by withdrawal of a State bank member, and 44 were
lost by suspensions or insolvency. At the end of 1931 there were
392 National bank members and 36 State bank members in the
Fifth district. Increased capital and surplus, and the subscriptions of new member banks, added 575 shares of stock of the
reserve bank to members' holdings in 1931, but liquidations,
mergers, withdrawals and failures deducted 7,039 shares, a net
loss of 6,464 shares during the year. On December 31, 1931, the
shares of this Bank owned by member banks numbered 109,563,
compared with 116,027 shares held on December 31, 1930. The
net decrease in the paid-up capital of the Bank during 1931 was
$323,200.
BANK RELATIONS DEPARTMENT

In 1931 the Bank Relations Department made 691 visits to
banks in the Fifth Federal Reserve District, 540 of these to
member banks and 151 to non-member banks. Each member
bank was visited at least once during the year. Since the organization of the Bank Relations Department in 1922, a total of
6,930 visits have been made to banks in the district, of which
4,895 visits were to member banks and 2,035 visits to non-member banks. One or more representatives of the Relations department attended each State Bankers' Convention in the district,
and also attended several Group meetings within the states.
In addition to the field work, the Bank Relations Department carried on a considerable volume of office and correspondence work. Banks considered to be in an unsatisfactory condition were given special attention, with gratifying results, and
work among suspended member banks was developed further
during the year. In connection with the latter work, it was
desirable to employ temporarily special representatives to work
with receivers of suspended member banks in certain cases. The
policy of making personal visits to receivers of all suspended
member banks in the district worked out well in practice. The
department continued its regular analyses of methods used by
member banks in computing reserves, and in cases where adjustments were necessary member banks showed a spirit of cooperation.
BANK EXAMINATION DEPARTMENT

The Bank Examination Department, which consists of four
examiners, a clerk and one stenographer, works under the general supervision of the Assistant Federal Reserve Agent. During 1931 the department, in addition to the regular field work,
analyzed copies of call reports of all member banks, and made
an extensive statistical study of member bank earnings covering
a period of five years.
Thefieldwork done by the Examination Department in 1931
was as follows:



FEDERAL RESERVE BANK OF RICHMOND
Banks
Examinations of State member banks in conjunction
with State Departments
27
Examination of State member bank in conjunction with
State and National Bank Examiners
1
Independent examinations of State member banks
2
State banks examined in connection with application for
membership
2
Special visits
12
44

21
Branches
28

28

STOCKHOLDERS ANNUAL MEETING

The stockholders of the Federal Reserve Bank of Richmond
held their seventh annual meeting in the Bank's Auditorium on
April 10, 1931, with 133 representatives of 98 member banks
present. In addition, the Association had the honor of welcoming Governor Eugene Myer and Hon. C. S. Hamlin, members of
the Federal Reserve Board, and several Directors of the Federal
Reserve Bank of Richmond and of the Baltimore and Charlotte
Branches. In spite of the relatively small attendance, the meeting was one of the best the Association has held. A stenographic
report of the meeting was printed and distributed to all member
banks.
PERSONNEL

The Board of Directors held twelve regular meetings in
1931. In the annual Fall election, member banks in Group 2
re-elected James C. Braswell, of Rocky Mount, N. C, as a Class
A director, and banks in Group 3 re-elected Edwin C. Graham,
of Washington, as a Class B director, both gentlemen to serve
three-year terms from December 31, 1931. On September 10,
Junius P. Fishburn, of Roanoke, resigned as a Class B director,
and member banks in Group 1 elected W. Meade Addison, of
Richmond, to fill the unexpired term, which expires December
31, 1933. Mr. Addison was formerly president of the Planters
National Bank of Richmond, then an Executive Manager and
Director of the State-Planters Bank & Trust Company, of Richmond, and at present is actively connected with several industrial enterprises and is also Principal Agent of the Mutual Assurance Society of Virginia. The Federal Reserve Board reappointed Robert Lassiter, of Charlotte, as a Class C director,
for a three-year term beginning December 31, 1931. The Reserve Board redesignated Wm. W. Hoxton as Chairman of the
Board and Federal Reserve Agent for 1931, and Frederic A.
Delano as Deputy-Chairman.
The Board of Directors, at the December meeting, elected
Howard Bruce, of Baltimore, Chairman of the Board, Baltimore
Trust Company, as a member of the Federal Advisory Council
for the Fifth district, vice John Poole, of Washington, who



22

SEVENTEENTH ANNUAL REPORT OF THE

had served three years. Charles E. Rieman, of Baltimore, was
redesignated as alternate. On April 22, H. B. Wilcox, of Baltimore, died, and was succeeded on the Board of Directors of the
Baltimore Branch by Morton M. Prentis, President of the First
National Bank of Baltimore. Members of the Boards at Baltimore and Charlotte whose terms expired on December 31, 1931,
were re-elected by the Board of Directors of the Federal Reserve
Bank of Richmond or were reappointed by the Federal Reserve
Board.
There were no changes in the official personnel at the Head
Office in Richmond during 1931, but important changes occurred
at the Baltimore and Charlotte offices. Albert H. Dudley resigned as Managing Director of the Baltimore Branch, effective
September 30, to become Executive Vice-President of the Baltimore Trust Company. Hugh Leach, Managing Director at the
Charlotte Branch, was elected by the Board of Directors to succeed Mr. Dudley at Baltimore. W. T. Clements, Cashier at Charlotte, was promoted to Managing Director of that branch, and
R. L. Cherry, manager of the Transit department, was made
Cashier.
The total number of officers and employees at Richmond on
December 31, 1931, was 326, as compared with 325 on December
31, 1930. The total number of officers and employees in the
Richmond, Baltimore and Charlotte offices combined was 552 on
December 31, 1931, as compared with 558 on December 31, 1930.
There was an increase of 1 at Richmond, but the force at Baltimore declined 3 and the force at Charlotte dropped 4 during
1931, a net decrease for the three offices of 6 employees.
ADDITION TO MAIN BUILDING

The addition to the Main building of the Federal Reserve
Bank of Richmond, authorized by the Federal Reserve Board in
January 1930 and begun in July of that year, was completed
and occupied in August 1931. The addition more than doubled
the floor space under one roof, and enabled the Bank to house all
of its departments in one building, thus greatly facilitating the
work and adding to the comfort of the employees. The old
Annex building was vacated, and rented temporarily to the
United States Post Office Department.
BALTIMORE BRANCH

The Baltimore Branch territory embraces the State of
Maryland and thirty counties in northern West Virginia, as follows:



FEDERAL RESERVE BANK OF RICHMOND
Barb our
Berkeley
Braxton
Calhoun
Doddridge
Gilmer
Grant
Hampshire

Hardy
Harrison
Jackson
Jefferson
Lewis
Marion
Mineral
Monongalia

Morgan
Nicholas
Pendleton
Pleasants
Preston
Randolph
Richie
Roane

23

Taylor
Tucker
Upshur
"Webster
Wirt
Wood

At the close of the year 1931 there were 114 member banks
and 175 non-member banks in the territory served by the Baltimore Branch, all of the non-members being on the par list.
The number of employees at the Baltimore Branch, including 4 officers, decreased from 179 at the close of 1930 to 176 at
the close of 1931.
CHARLOTTE BRANCH

The Charlotte Branch territory embraces 34 counties in
western North Carolina and 21 counties in western South Carolina. Counting out-of-town branches as separate banks, there
were in the territory of the Charlotte Branch on December 31,
1931, 43 member banks, 23 par non-member banks, and 159 nonpar non-member banks. The counties served are as follows:
NORTH CAROLINA
Alexander
Alleghany
Ashe
Avery
Buncombe
Burke
Cabarrus
Caldwell
Catawba
Cherokee
Clay
Cleveland
Gaston
Graham
Haywood
Henderson
Iredell

Jackson
Lincoln
Macon
Madison
McDowell
Mecklenburg
Mitchell
Polk
Rowan
Rutherford
Stanley
Swain
Transylvania
Union
Watauga
Wilkes
Yancey

SOUTH CAROLINA
Abbeville
Aiken
Anderson
Cherokee
Chester
Edgefield
Fairfield
Greenville
Greenwood
Lancaster
Laurens
Lexington
McCormick
Newberry
Oconee
Pickens
Richland

Saluda
Spartanburg
Union
York

On July 20, 1931, the Charlotte Branch moved from its
quarters on the twentieth floor of the First National Bank
Building to the quarters formerly occupied by the First National
Bank on the first and second floors. The main banking room is
well lighted and very handsomely designed. The entire space
occupied is well adapted to the needs of the branch.
At the end of 1931 there were employed at the Charlotte
Branch 2 officers and 49 employees, compared with 2 officers and
53 employees on December 31, 1930.



24

SEVENTEENTH ANNUAL REPORT OF THE

FISCAL AGENCY OPERATIONS

The volume of work handled by the Federal Reserve Bank
of Richmond as Fiscal Agent of the United States was materially
larger in 1931 than in 1930. There were 6 issues of Certificates
of Indebtedness, 1 issue of Treasury Notes, and 3 issues of Treasury Bonds during the year, and 14 special offerings of Treasury
Notes sold on bids. Total subscriptions to the issues of Certificates of Indebtedness, Treasury Notes and Treasury Bonds
amounted to $502,085,000, of which $195,188,000 was allotted.
Twenty-one bids were offered for the special Treasury Notes,
but only one, for $300,000, was accepted by the Treasury. Including deliveries, redemptions and exchanges of Certificates of
Indebtedness, Treasury Notes and Treasury Bonds, Victory and
Liberty Bonds, and War Savings Stamps, the Bank handled
43,764 pieces with an aggregate value of $283,888,000 during
1931, compared with 29,794 pieces valued at $124,861,000
handled in 1930, an increase last year of 46.9 per cent in number
of pieces and 127.4 per cent in total value.
An analysis of the United States Treasurer's general account with the Bank shows that on January 1, 1931, the Treasurer had a balance of $444,000. Receipts for the credit of the
Treasurer during the year totaled $1,111,659,000, while disbursements totaled $1,110,461,000, leaving a balance due the Treasurer on December 31, 1931, of $1,642,000. The receipts and disbursements by the Bank for the account of the Treasurer in
1931 were about 11.8 per cent more than in 1930.
FIDUCIARY POWERS

During 1931 permission was granted to three National
banks to exercise Fiduciary powers under authority of Section
11 (k) of the Federal Reserve Act, as amended, and one bank
surrendered powers previously granted to it. Full powers were
granted to the Citizens National Bank of Gastonia, N. C, on
January 28, 1931; to the Union National Bank of Lenoir, N. C,
on August 5, 1931; and to the McDowell County National Bank,
Welch, W. Va., on June 9, 1931. The Union National Bank of
Lenoir, N. C, and the McDowell County National Bank,
Welch, W. Va., had previously received permission on February
27, 1931, to exercise limited powers. The permission to exercise
Fiduciary powers previously granted to the National Capital
Bank of Washington, D. C, was rescinded upon request of the
bank on April 22, 1931.





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102