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SIXTEENTH ANNUAL REPORT
OF THE

FEDERAL RESERVE BANK
OF RICHMOND

FOR THE YEAR ENDED DECEMBER 31, 1930




WM. W. HOXTON
Chairman and Federal Reserve Agent

SIXTEENTH ANNUAL REPORT
OF THE

FEDERAL RESERVE BANK
OF RICHMOND

FOR THE YEAR ENDED DECEMBER 31, 1930




W M . W . HOXTON
Chairman and Federal Reserve Agent

DIRECTORS AND OFFICERS
OF THE

FEDERAL RESERVE BANK OF RICHMOND
FOR YEAR 1931
DIRECTORS

Class A

Class C

Class B

JAMES C. BRASWELL, 1931,
Rocky Mount, N C.

EDWIN C GRAHAM, 1931,

L. E. JOHNSON, 1932,

D. R. COKER, 1932,

CHAIRMAN OF THE BOARD,
RICHMOND, VA.

WASHINGTON, D. C.

ALDERSON, W. VA.

FREDERIC A. DELANO. 1933,
DEPUTY CHAIRMAN,
WASHINGTON, D. C.

HARTSVILLE, S. C.

JUNIUS P. FISHBURN, 1933,

CHAS. E. RIEMAN, 1933,

ROBERT LASSITER, 1931,
CHARI.OTTE, N. C.

ROANOKE, VA.

BALTIMORE, MD.

WM. W. HOXTON, 1932,

OFFICERS
GEORGE J. SEAY,

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

GOVERNOR.

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 DEPT.

W. W. DILLARD,
ASSISTANT CASHIER.

EDWARD WALLER, JR.,
ASSISTANT CASHIER.

COUNSEL
MAXWELL G. WALLACE.
MEMBER FEDERAL ADVISORY COUNCIL
JOHN POOLE, 1931,
WASHINGTON, D. C.

BALTIMORE BRANCH
DIRECTORS
A. H. DUDLEY, BALTIMORE, MD., 1931.
LEVI B. PHILLIPS, CAMBRIDGE, MD., 1931.
L. S. ZIMMERMAN, BALTIMORE, MD., 1932.
H". B. WILCOX, BALTIMORE, MD., 1933.
WM. H. MATTHAI, BALTIMORE, MD., 1931.
EDMUND P. COHILL, HANCOCK, MD., 1932.
NORMAN JAMES, BALTIMORE, MD., 1933.

CHARLOTTE BRANCH
DIRECTORS
HUGH LEACH, CHARLOTTE, N. C , 1931.
W. H. WOOD, CHARLOTTE, N. C , 1931.
C. L. COBB, ROCK HILL, S. C, 1932.
ROBT. GAGE, CHESTER, S. C , 1933.
J O H N LINDSAY MOREHEAD, CHARLOTTE, N. C , 1931.
C. A. CANNON, CONCORD, N. C , 1932.
J O H N A. LAW, SPARTANBURG, S. C , 1933.

OFFICERS
A. H . DUDLEY, MANAGING DIRECTOR.
J O H N R. CUPIT, CASHIER.
J. A. JOHNSTON, ASSISTANT CASHIER.
F. W. WRIGHTSON, ASSISTANT CASHBR.




OFFICERS
HUGH LEACH, MANAGING DIRECTOR.
W. T. CLEMENTS, CASHIER.

FEDERAL RESERVE BANK
OF RICHMOND

February 28, 1931.
THE FEDERAL RESERVE BOARD,

Washington, D. C.
GENTLEMEN :

I have the honor to submit herewith the Sixteenth
Annual Report of the Federal Reserve Bank of Richmond,
for the year ended December 31, 1930.




Respectfully,
WM. W. HOXTON,

Chairman of the Board and
Federal Reserve Agent.

COMPARATIVE STATEMENT OF CONDITION
RESOURCES
RESERVESGold with Federal Reserve Agent
Gold Redemption Fund-F. R. Notes
Gold Settlement Fund
Gold Coin and Certificates

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

Dec 31, 1929
$ 76,190,000.00
3,180,000.00
8.098.108.68
11,913,587.50

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

$118,220,085.74
6,903,012.00
$120,123,097.74

$99,376,696.13
5,830,233.00
$105,206,929.13

$ 3.2&0.720.O0
1,804,758.05

$ 4,934,070.00
970,604.59

Total Non-Reserve Cash
$ 4,555,478.05
EARNING ASSETS:
Bills Discounted—Secured by U. S. Gov. Obligations
$ 3,226,473.85
Bills Discounted—Non-Members secured by Adjusted Service Certificates
8,763.00
Bills Discounted—All Other
19,530,958.40
Total Bills Discounted
$ 22,766,195.25
Bills Purchased in Open Market
10,936,375.12
United States Government Securities
13,907,100.00

$ 5,904,674.59

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

$ 47,609,670.37

$ 61,833,554.53

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

$ 50,396,700.68
1,927,204.41
241,880.03
5,719,070.00

Total UncoUected Items
MISCELLANEOUS:
Interest Accrued
Fiscal Agency Expenses, Reimbursable
BankPremis.es, (Richmond and Baltimore)
Claims Account Closed or Suspended Banks
Participation in Due from Foreign Banks
All Other Resources
Total Miscellaneous Assets

$ 11,285,650.00
3,000.99
27.650,053.18
$ 38,938,704.17
13,335,750.36
9,559,100.00

$ 40,406,506.02

$ 58,284,855.12

$

$

5,298.23
1,112.02
8,249,291.60
925,897.93
29,548.77
36,730.04

5,298.23
1,357.31
8,193,862.45
626,003.77
33,157.78
48,667.28

$ 4,247,878.59

$ 8,908,346.82

$216,942,630.77

$235,138,360.19

$ 5,801,350.00
12,113,588.51

$ &.072.450.00
12,495,857.15

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

$ 17,914,938.51

$ 18,568,307.15

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

$ 64,741,697.70
2,149,544.07
257,996.72
84,466.30
76,264.44

Total Deposits
DEFERRED AVAILABILITY CREDITS:
United States Treasurer
Federal Reserve and Member Banks
Miscellaneous

$ 61,672,690.20

$ 67,309,969.23

$

792,042.89
85,089,959.51
228,532.58

$ 1,681,498.71
47,479,748.16
521,364.92

$86,110,534.98

$49,682,611.79

$100,516,210.00

$ 98,670,400.00

$

$

TOTAL RESOURCES

LIABILITIES
CAPITAL:
Capital paid in
Surplus

Total Deferred AvaUability Credits
NOTE CIRCULATION:
F. R. Notes in Actual Circulation
MISCELLANEOUS:
Reserve for Expense Accrued and Unpaid
Reserve for Self Insurance
Reserve for Undetermined Losses
Unearned Discount
All other Liabilities
Total Miscellaneous Liabilities
TOTAL LIABILITIES




8,402.75
400,000.00
264,000.00
60,313.42
540.91
$
728,257.08
$216,942,630.77

2,925.47
400,000.00
400,000.00
103,439.13
707.42
$
907,072.02
$235,138,360.19

SIXTEENTH 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 Manufactures,
5th District
Tobacco Grown in 5th District (Pounds)
Farm Value, All Crops in 5th District....
Building Permits for New Work (32
Cities)
Value of Permits for New Work (32
Cities)
Value of Contracts Awarded, 5th District
Total Sales, 34 Department Stores, 5th
District
Total Sales, 66 Wholesale Firms in 5
Lines

1930
$15,588,979,000
$

1,572
32,806,719

1929
$16,851,269,000
$

2,375,299
1,877,000
104,539,883,450
$
$

343,885,497
741,721,000
544,949,000

1,420
24,705,654

3,039,884
1,625,000
97,188,977,517
$
$

12,653

321,361,648
726,748,000
737,887,000
16,420

$

83,454,134

$

105,060,685

$

352,912,092

$

385,963,047

$

108,545,598

$

112,070,045

$

59,324,766

$

66,291,736

The reaction in the Fifth Federal reserve district to the
world wide depression of 1930 was expressed by a reduction in
the aggregate volume of business below the level of 1929, especially when measured in dollar amounts. The district resisted
the first shock of the decline in the closing months of 1929, and
held its own fairly well through the first quarter of 1930, but
from that time to the end of the year there was a gradual but
steady decline in business of all kinds. The depression first
affected construction work, and the decline in building greatly
increased the number of unemployed in building trades and allied
industries. Later in the year the unemployment situation proved
detrimental to retail and wholesale trade, and slowed up collections at stores, banks and elsewhere. Commodity prices declined steadily during the year, and this, together with a cautious
attitude which arose as a result of uncertainty as to employment, caused many people to postpone purchases, bringing about




6

SIXTEENTH ANNUAL REPORT OF THE

a smaller demand for goods which affected industrial plants of
all sorts, but especially those producing luxury or semi-luxury
articles. During the crop growing season a severe drought in
Maryland, Virginia and West Virginia retarded growth, and
yields turned out very much below those in average years. In
addition to the short crops, the year witnessed a virtual collapse
in prices for most agricultural products, and even in the Carolinas, where production of crops was good, the money returns
were much below those of other recent years and were inadequate to liquidate the year's indebtedness incurred in growing
the crops. Near the end of the year a considerable number of
banks found themselves unable to meet demands of depositors
and were forced to close, further retarding recovery of business
by tying up funds in the closed institutions. With trade on a
relatively low level in 1930, there was less demand for bank
credit, and therefore little need for member banks to borrow
from the reserve bank except toward the end of the year to
strengthen their position. The average daily holdings of rediscounts of paper for member banks consequently was low at
the Federal Reserve Bank of Richmond, and loans by the member banks to their customers were in smaller amount than in
other recent years.
An examination of some of the annual statistics for 1930
shows how general the year's depression was. Debits to individual accounts declined 7.5 per cent during the year, department
store sales declined 3.1 per cent, wholesale trade in five leading
lines decreased 10.5 per cent, and contracts awarded for construction work in the district declined 8.6 per cent. However,
all of these decreases were due in part to lower price levels in
1930. Commercial failures increased last year in both number and liabilities involved. Production of the district's two
leading money crops, cotton and tobacco, exceeded production
of the previous year, due to good yields in the Carolinas, but
the income derived from them was considerably smaller in 1930
because of much lower prices. While the decline in construction
work in 1930 was marked, and played a leading part in increasing unemployment, the two most serious factors which adversely
affected the district in 1930 were the record drought in the
upper half of the district and the drastic slump in cotton and
tobacco prices.
VOLUME OF BUSINESS

Except in the currency and coin handled last year, the
volume of business at the Federal Reserve Bank of Richmond
in 1930 was smaller than in 1929. The number of bills discounted and bought in 1930 declined 16.74 per cent from the
number handled in 1929, and the average daily holding of bills
was 58 per cent less than in 1929. The number of borrowing



FEDERAL RESERVE BANK OF RICHMOND
1930

ITEMS
BILLS DISCOUNTED AND
BOUGHT:

Number
Amount

1929

Per Cent of
Increase or
Decrease

49,768
59,771
$ 1,300,738,000 $ 4,755,793,000

—16.74
—72.65

55,730,000
54,109,000
$12,795,015,000 $14,118,820,000

— 2.91
— 9.38

CHECKS HANDLED BY TRANSIT
DEPARTMENT :

Number
Amount

NON-CASH COLLECTIONS
HANDLED :

Number
Amount

$

270,996
231,051,000 $

284,929
264,948,000

— 4.89
—12.79

$

177,598,372
789,548,000 $

174,518,171
757,851,000

1.76
4.18

$

175,675,181
802,648,000 $

175,069,783
752,159,000

.35
6.70

$

177,008,594
16,149,000 $

148,126,049
16,394,000

— 1.49

$

172,361,422
15,360,000 $

148,474,516
16,392,000

16.09
— 6.30

138,993
149,495
$ 6,725,085,000 $ 6,020,866,000

— 7.02
11.70

CURRENCY RECEIVED AND
COUNTED (Including new

notes):
Number of pieces
Amount

CURRENCY PAID OUT

cludes redemptions) :
Number of pieces
Amount

(In-

COIN RECEIVED AND COUNTED

(Includes new) :
Number of pieces
Amount

19.50

COIN PAID OUT (Including

redemptions):
Number of pieces
Amount

TRANSFERS OF FUNDS FOR
MEMBER BANKS:

Number
Amount

FISCAL AGENCY WORK:

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

$

29,794
124,861,000 $

50,569
141,732,000

^41.08
—11.90

banks in 1930 was 345, compared with 384 which borrowed
from the Bank at some time in 1929. The number of checks
cleared by the transit department declined more than a million
and a half in 1930 in comparison with the number cleared in
1929, and the amount involved declined $1,323,000,000, the
average amount for which the checks were drawn being 6.7 per
cent lower in 1930, due in very considerable part to lower prices.
The number of non-cash collections handled in 1930 was 4.89
per cent lower than the number handled in 1929, and the aggregate amount decreased 12.79 per cent, each item, as in the case
of checks cleared, having a lower average value than in the



8

SIXTEENTH ANNUAL REPORT OF THE

earlier year. Transfers of funds for member banks decreased
7.02 per cent in number in 1930, but the aggregate amount involved rose 11.7 per cent. Fiscal Agency transactions decreased
materially in both number and amount in comparison with those
of the earlier year.
A table on the preceding page shows the volume of work
handled by the principal departments of the Bank during 1930,
as compared with the year 1929.
FINANCIAL RESULTS OF OPERATIONS

The following is a condensed statement of receipts and
disbursements for the year 1930:
ITEMS

Average
Average
Daily
Daily
Holdings Earnings
$21,539,281
$2,403
9,931,065
772
14,170,706
1,119

Bills Discounted
Bills Purchased
U. S. Securities Held
Penalties and Miscellaneous Earnings
Totals
$45,641,052
Current Expenses
Current Net Earnings
Additions to Current Net
Earnings
Totals
Account of Reserves, Depreciation, etc
Net Deficit
Dividend Paid
Gross Deficit

202
$4,496

Annual
Rate of
Earnings
$ 877,181
.0407
.0284
281,883
.0288
408,503
Total
Earnings

73,823
$1,641,390
1,569,034
72,356
61,816
134,172
162,969
28,797
353,472
$ 382,269

Due to a marked decrease in rediscounting by member
banks in 1930 in comparison with 1929 and to lower discount
rates, the gross earnings of the Federal Reserve Bank of Richmond totaled only $1,703,205 last year, compared with $3,299,610
earned in 1929. The percentage of gross earnings derived from
the discount of member bank paper amounted to 52 per cent last
year, compared with 78 per cent in 1929 and 68 per cent in 1928.
The Bank increased its holdings of Government securities in
1930, and 24 per cent of the gross earnings for 1930 came from
these investments. The larger part of the remaining 24 per
cent of income was derived from purchases of open market
paper. A chart on the next page shows graphically the percentages of gross earnings from each of the several sources in
1930 and 1929.
Current expenses of the Federal Reserve Bank of Richmond
totaled $1,569,034 in 1930, a decrease of $18,210 under $1,587,244
for 1929. Current net earnings plus additions thereto for 1930
totaled only $134,172, compared with $1,712,366 for 1929. Net



FEDERAL RESERVE BANK OF RICHMOND

9

earnings last year were insufficient to care for necessary transfers to depreciation and miscellaneous accounts, and the surplus
account of the Bank was therefore debited by $28,797 to meet
these charges. Further, dividend payments on capital stock
totaled $353,472, which was also taken from the surplus account,
making a gross deficit of $382,269 on the Bank's operations for
1930. 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.
SOURCES OF INCOKE
I n Percentages of

m
%
wd
W ^<m
m
>^ <
^^

?^>w

Total

1929

^>

^/Discounts

^Bills\^
Purchased^

^ l U . S .Securit ies

V//////
\/Zyy7/

IV*-U.S.Sec.

*-Miscellaneous

EXPENSES OF OPERATION IN 1930
The expenses of Federal Reserve Banks are incurred in the exercise
of functions prescribed by law, which involve the rendering of services
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
par 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 1930, divided according to functions, were
as follows:
CURRENCY AND COIN
The cost of receiving and handling 177,598,372
pieces of currency aggregating $789,547,000
of which 122,352,499 pieces had been in circulation and had to be sorted and counted;
paying or shipping out 175,675,181 pieces of




10

SIXTEENTH ANNUAL REPORT OF THE

currency aggregating $802,648,000; receiving and handling 177,008,594 pieces of coin
aggregating $16,149,000; paying or shipping
out 172,361,422 pieces of coin aggregating
$15,360,000 was
$123,114.71
The shipping charges (postage, expressage and
insurance) on currency and coin to and from
out-of-town members amounted to
97,993.44
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
147,808.94
Total Cost
LOANS, REDISCOUNTS AND INVESTMENTS
The cost of making discounts and advances to
345 member banks: 45,279 notes aggregating $1,205,446,000, were received, examined
and discounted; 55,389 notes collateral to
member bank notes aggregating $847,126,000
were received, examined, and handled; 5,686
pieces of marginal or excess collateral, aggregating $16,909,000, were received, examined and handled; 4,489 bankers' acceptances aggregating $95,292,000, were purchased in the open market; includes the cost
of special handling accorded 6,846 notes aggregating $68,244,000 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
$ 49,591.87
The cost of affecting 885 transactions in the
purchase and sale (in the open market) of
government securities for out-of-town banks,
aggregating $49,465,000 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 40,976 pieces
aggregating $558,662,000; shipping 45,056
pieces aggregating $553,831,000; holding in
our vaults throughout the year securities, deposited by member banks as collateral to discounts or for safe keeping, ranging from
$55,133,000 to $87,091,000 was
12,792.99

$ 368,917.09

Total Cost
$
TRANSIT AND COLLECTIONS
Handling and collecting 52,149,000 checks, aggregating $12,572,989,000 cost
$192,322.02



62,384.86

FEDERAL RESERVE BANK OF RICHMOND

11

Receiving, examining, paying and listing according to Treasury regulations 1,960,000
government checks, aggregating $222,026,000,
and shipping them to Washington cost
7,880.04
Handling 1,009,800 checks aggregating $53,006,000 returned unpaid for various reasons
cost
19,397.68
Handling 270,996 non-cash collection items
(maturing notes, drafts, coupons, etc.), aggregating $231,051,000 cost
35,146.53
Total Cost
$ 254,746.27
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 $16,445,434,000
was received from and paid to other Federal Reserve banks and branches, the Treasurer of the United States, and the Federal
Reserve Agent.
The transfers of funds for account of member
banks of which there were 138,993 aggregating $6,725,085,000.
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
$ 127,576.52
FISCAL AGENT OF THE UNITED STATES
Services rendered as Fiscal Agent of the U. S.
Government:
Receiving, proving and crediting to banks, preparing schedules, cancelling and shipping to
Washington 568,456 government coupons aggregating $10,489,200 cost
$ 3,732.19
Fiscal Agency work for the U. S. Government
principally relating to the issue of 7,664
pieces of government securities amounting
to $50,951,000; the redemption of 7,761 pieces
amounting to $23,993,000; the exchange
and transfer of 21,306 pieces amounting to
$63,503,000; the redemption of war savings
and thrift stamps 144 pieces amounting to
$275; the receipt of subscriptions and payments for new issues, the handling of the
war loan depositary accounts, the custody of




12

SIXTEENTH ANNUAL REPORT OF THE
a stock of securities ranging from $54,640,000 to $95,609,000 cost
27,149.31

Total Cost
Reimbursed by the Treasury Department

$ 30,881.50
7,901.09

Net Cost to the Bank

GENERAL EXPENSES—NOT ALLOCATED
TO THE ABOVE FUNCTIONS
Official salaries and supervisory expenses
$128,593.81
Directors' fees and traveling expenses
8,133.16
Governors', Federal Reserve Agents' and Federal Advisory Council conferences
795.45
Our proportion of the expenses of the Federal
Reserve Board
33,409.77
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.)
167,268.41
The provision of personnel
26,531.25
Legal expenses
8,834.76
Maintaining the general audit of the bank and
branches
24,170.51
Work of the Federal Reserve Agent's Department, including issuance of Federal Reserve
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
52,160.53
Bank relation work; visiting and advising, and
conferences with member and non-member
banks
25,862.30
Handling incoming and outgoing ordinary and
registered mail
24,805.29
Protection—Salaries of special officers and
watchmen, and other protective services
68,009.30
Other general services, including purchasing
of supplies and equipment, operating the office supplies and stationery 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.... 75,682.18
Shipping charges (postage and insurance) on
securities
2,541.86
Postage on ordinary mail
66,745.43
Insurance—Employees' group life, Employees'



$

22,980.41

13

FEDERAL RESERVE BANK OF RICHMOND
fidelity, Bankers' blanket bond and burglary,
Workmen's Compensation, Fire—equipment
and supplies, and Automobile
22,369.55
Total Cost

$

735,913.56

Total Operating Expense*

$ 1,572,518.71

* NOTE: The total Operating Expense during 1930 was $3,484.27
more than the total amount of expenditures charged 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

Member banks used reserve bank credit much less in 1930
than in 1929 or 1928, and the Federal Reserve Bank of Richmond discounted bills totaling only $1,205,446,000 last year, a
decrease of 74.31 per cent under discounts totaling $4,691,968,000 in 1929. 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, was $21,491,514* in 1930, a
decrease of 58.17 per cent under the daily average of $51,379,334
in 1929. The banks of all of the six geographical divisions in
the Fifth reserve district used reserve bank credit less extensively in 1930 than in 1929, District of Columbia banks decreasing their rediscounts most with 86.10 per cent and West Virginia least with 24.15 per cent. The accompanying table shows
by states the daily average amount of paper under discount at
the Richmond bank during 1930 and 1929, with percentages of
decrease last year.
AVERAGE AMOUNT OF PAPER UNDER DISCOUNT
STATES
Maryland
District of Columbia
Virginia
West Virginia
North Carolina
South Carolina
Fifth District

1930
2,292,230
431,412
7,961,381
3,490,032
5,896,996
1,419,463

1929
$ 8,210,000
3,103,984
17,840,022
4,601,039
13,587,908
4,036,381

$21,491,514* I $51,379,334

Per Cent of
Increase or
Decrease
—72.08
—86.10
—55.37
—24.15
—56.60
—64.83
—58.17

* This figure, which varies slightly from the average shown on page 8,
is correct. The slight inaccuracy in the other figure is due to the special
method of calculation used in accruing earnings.




SIXTEENTH ANNUAL REPORT OP THE

14

There was not much change in the class of paper rediscounted in 1930 in comparison with 1929, but a slightly larger
percentage of it was secured by (Government obligations than in
the earlier year. Of the total volume of 1930 discounts, 40.75
per cent was secured by Government securities, compared with
38.42 per cent in 1929 and 53.84 per cent in 1928. Member
bank notes secured by eligible paper and rediscounts of secured
or unsecured commercial or agricultural paper made up 59.25
per cent of total discounts and rediscounts at the Federal Reserve Bank of Richmond in 1930.
The discount rate on all classes of paper at the Bank was 5
per cent until February 7, 1930, but on that date the rate was
lowered to 4 ^ per cent. On April 11 a further reduction to 4
per cent was made, and on July 18 the rate was set at 3 ^ per
cent, at which figure it remained throughout the rest of the year.
AVERAGE

AMOUNT

0? PAPER

UNDER

DISCOUNT

By Months in 1930, 1929 A 1928
In
Million*
60

FEB

JAN

MAR

APR

55

MAY

JUN

JUL

AUG

SEP

OCT

NOV

.....

45
40

25

i

40
1928

-L9Jtf.

50
45

35
30

In
Millions
60
55

""

50
1929

DEC

35
30

.....

20

25
i

1930

20

15

15

10

10

5

5
Lower solid line, 1930; top solid lino, 1929; dotted line, 1928

A chart which shows graphically the monthly average
amount of paper under discount at the Federal Reserve Bank
of Richmond in 1930, 1929 and 1928, indicates a trend from
month to month in 1930 contrary to the trend in the two preceding years. 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. But in 1930 the average amount of paper
under discount at the Bank declined during the first four months
of the year, and then advanced slightly during the next four
months. The usual reduction in discounts began moderately in
the fall, but in November there was an unseasonal upward movement which continued through most of December, the average
holdings for the latter month being the highest for any month



FEDERAL RESERVE BANK OF RICHMOND

15

of the year. This unusual rise in credit demand from member
banks was due to a number of bank failures in November and
December, which created a tense situation in some localities and
caused many banks to borrow at the reserve bank in order to
strengthen their cash positions.
ACCEPTANCES

The Federal Reserve Bank of Richmond discounted trade
acceptances totaling $513,904 for member banks in 1930, compared with $1,256,241 of the same class of paper discounted in
1929, and bankers' acceptances discounted last year totaled
$10,350 in comparison with $133,296 discounted in the preceding
year.
The Bank purchased bankers' acceptances from member
banks and in the open market more extensively in 1930 than in
the preceding year. Aggregate purchases of acceptances in 1930
totaled $95,292,442, in comparison with $63,825,043 in 1929.
Purchases from member banks last year totaled $46,673,527,
compared with $20,031,788 in 1929; purchases from non-member
banks and dealers totaled $46,938,942 against $42,295,923 in
1929, and purchases through foreign banks totaled $1,679,973
compared with $1,497,332 in 1929. No acceptances were purchased from other Federal reserve banks in either 1930 or 1929.
The average maturity of acceptances purchased in 1930 was
shorter than in 1929, and therefore average daily holdings of
open market paper totaled only $9,931,065 last year, in comparison with $11,030,662 in 1929.
CHECK COLLECTIONS

The physical volume of work handled by the Transit Department in 1930, as reflected in the number of checks cleared,
was less than in either 1929 or 1928, but exceeded that of any
earlier year. The aggregate amount involved, however, was less
than in any year since 1922. The department handled 54,109,000
checks during 1930, compared with 55,730,000 handled in 1929
and 54,570,000 in 1928. The total amount involved in the checks
cleared last year was $12,795,015,000, compared with $14,118,820,000 in 1929, a decrease of $1,323,805,000. The average
amount of each item handled dropped sharply in 1930, to $236,
the lowest figure for any year since 1922, reflecting in part the
comparatively low price level which prevailed during the year
and in part a probable reduction in large transactions. The
average number of items handled each working day in 1930 was
179,764, amounting in round numbers to $42,508,000, compared
with 184,536 items totaling $46,751,000 handled daily in 1929.
Of the 54,109,000 items handled in 1930, 4,854,000 were drawn
on banks outside the Fifth reserve district and were forwarded



SIXTEENTH ANNUAL REPORT OP THE

16

to other Federal reserve banks and branches, and 1,960,000 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 201,058 last
year, totaling in amount $2,073,313,000, as compared with
210,776 cash letters amounting to $2,434,671,000 sent direct to
other districts in 1929. 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 270,996 items in 1930,
having an aggregate value of $231,051,000, as compared with
284,929 items amounting to $264,948,000 handled in 1929. These
figures show a decrease of 4.89 per cent in the number of items
handled last year, while the aggregate amount handled decreased
12.79 per cent, the average amount of the items collected in
1930 being less than in 1929.
GOLD SETTLEMENT FUND

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

Receipts
from

Payments
to

Total
Settlements

Boston
New York
Philadelphia
Cleveland
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
Settlement between
Head Office and
Branches:
Richmond
Baltimore
Charlotte
Totals

$ 154,310
2,839,261
662,145
619,987
387,803
365,273
109,677
14,989
36,470
41,328
186,721
$5,417,964

$ 163,032
2,672,647
719,424
574,772
362,084
384,039
153,453
4,461
31,403
25,265
177,607
$5,268,187

$

317,342
5,511,908
1,381,569
1,194,759
749,887
749,312
263,130
19,450
67,873
66,593
364,328
$10,686,151

1,405,898
774,860
496,357
$8,095,079

1,239,231
880,673
557,211
$7,945,302

2,645,129
1,655,533
1.053,568
$16,040,381




Percentage
of Total
2.97
51.58
12.93
11.18
7.02
7.01
2.46
.18
.64
.62
3.41
100.

FEDERAL RESERVE BANK OF RICHMOND

17

The Federal Reserve Bank of Richmond received $8,227,786,000 from Federal reserve banks and other sources through
the Gold Settlement Fund in 1930, while it paid out $8,217,648,000. The excess of receipts over disbursements resulted in a
net increase for the year of $10,138,000, bringing the balance in
the Fund to the credit of this Bank up to $18,231,000 at the
close of business December 31, 1930.
The percentages of settlements with the New York and San
Francisco districts were higher in 1930 than in 1929, but all
other percentages were smaller than in the earlier year. In
aggregate amount of settlements, the same comparison holds,
those between Richmond and New York and Richmond and San
Francisco being larger in 1930, while those between Richmond
and all other districts decreased. The increase in Richmond and
San Francisco settlements was unusually large, the aggregate
for 1930 being nearly three and a half times the amount in 1929.
The Richmond reserve bank received more from than it paid to
New York, Cleveland, Atlanta, Minneapolis, Kansas City, Dallas and San Francisco, while it paid more to than it received
from Boston, Philadelphia, Chicago, and St. Louis. The total
for all districts was approximately $18,000,000 more in 1930
than in the preceding year, the increases in settlements between
Richmond on the one hand and New York and San Francisco
on the other more than offsetting the declines in settlements
between Richmond and the other nine reserve banks.
WIRE TRANSFERS OF FUNDS

Transfers of funds for member banks are made by the Federal Reserve Bank of Richmond without cost to the transferring
bank, this service being facilitated by the operation of private
leased wires connecting all Federal reserve banks and branches
and the Federal Reserve Board. Funds were transferred for
member banks 138,993 times in 1930, the total amount being
$6,725,085,000, compared with 149,495 transfers aggregating
$6,020,866,000 made in 1929. There were 135,179 telegrams
sent or received over the private wire during 1930, compared
with 145,534 messages in 1929. In its transactions with and
for member banks, the Bank uses commercial telegrams extensively, in addition to the operation of the private leased wire.
RESERVE NOTE CIRCULATION

The average daily circulation of Federal reserve notes of
the Richmond bank was higher in each of the first six months
of 1930 than in the corresponding months of 1929, but each of
the last six months showed lower average figures than those of
the preceding year, due at least in part to the materially higher
figures in the second half of 1929 as a result of the introduction



18

SIXTEENTH ANNUAL REPORT OF THE

of small sized currency on July 10, 1929. Average daily circulation totaled $73,371,342 in 1930, compared with $78,715,188
in 1929. Circulation followed a seasonal trend during the major
part of 1930, declining steadily from a daily average of $88,010,057 in January to $63,274,789 in August, and then rising
gradually to $76,605,295 on December 1. During December,
however, owing to the failure of an unusually large number of
banks and the feeling of uneasiness engendered thereby, many
banks desired to strengthen their cash position, and the circulation rose rapidly until on December 20 it stood at $109,375,665,
the high figure for the year. From that point it declined to
$100,516,210 at the close of the year, the daily average circulation for December being $97,219,186. The low average for
1930 reached in August was $2,830,449 below the low point
reached in July 1929, and the high average of December 1930
was only $777,811 less than the December 1929 circulation.
CURRENCY AND COIN SERVICE

The Federal Reserve Bank of Richmond shipped currency
and coin to member banks during 1930 totaling $484,683,596,
and $24,556,058 were sent to non-members. The Bank received
$459,502,027 in currency and coin from member banks in 1930,
and $85,177,056 from non-member banks. The total amount of
currency and coin shipped to and received from member and
non-member banks in 1930 was $1,053,918,737, a sum $31,319,979, or 2.9 per cent, less than total shipments and receipts in
1929.
In shipments of currency and coin to and from member
banks, the reserve bank defrays all shipping charges and insurance. It also pays the charges on remittances from non-<member
banks in settlement for cash letters, but all other shipments to
or from non-member banks are made at the expense of the nonmembers 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 every month of 1930 than in 1929, and the average for last
year was 73.37 per cent compared with 61.25 per cent for the
preceding year. The low average for 1930 was reached in
December with 68.13 per cent, and the highest month was April
with 78.14 per cent. The low average of December was due to
an unusually large increase in the circulation of Federal reserve
notes in that month. In 1929 the low point of 57.63 per cent was
reached in May and the high point of 65.24 per cent in December.
Average daily deposits totaled $67,236,526 in 1930, against



FEDERAL RESERVE BANK OF RICHMOND

19

$69,246,347 in 1929; average daily note circulation was $73,371,342 in 1930, and $78,715,188 in 1929; and daily average
cash reserves totaled $103,163,224 last year and $90,628,443 the
preceding year. Deposits averaged highest in January and lowest in December; note circulation was highest in December and
lowest in August; and cash reserves were highest in February
and lowest in September.
CHANGES IN MEMBERSHIP

Membership in the Federal Reserve System in the Fifth
district declined during 1930 from 525 banks to 487 banks. Six
banks joined the System during the year, but 44 members were
lost through liquidations, mergers or withdrawals, a net decrease of 38 members, 24 of these being withdrawals of National
banks upon surrender of their charters to merge with State
banks or to be absorbed by other member banks. At the end
of 1930 there were 447 National bank members and 40 State
bank members in the Fifth district. Increased capital and surplus, and the subscriptions of new member banks, added 3,488
shares of stock of the reserve bank to members' holdings during
1930, but liquidations, mergers and withdrawals deducted 8,910
shares, a net loss of 5,422 shares during the year. On December
31, 1930, the shares of this Bank owned by member banks numbered 116,027, compared with 121,499 shares held on December
31, 1929. The net decrease in the paid-up capital of the Bank
during 1930 was $271,100.
BANK RELATIONS WORK

During 1930 the Bank Relations Department made 766
visits to banks in the Fifth Federal reserve district, 562 of these
to member banks and 204 to non-members. In compliance with
the policy established by our Board of Directors, each member
bank in the district was visited at least once during the year.
Since its organization in 1922, the Bank Relations department
has paid 4,355 visits to member banks and 1,884 visits to nonmembers, a total of 6,239 visits.
The Relations department continued to give special attention to banks considered to be in an unsatisfactory condition,
and further developed work among suspended member banks
which were indebted to this Bank at the time of suspension.
The policy of making personal visits to receivers of such banks
was followed, at which time makers of notes held by the Bank
were interviewed. The results of these visits and interviews
have been very satisfactory.
One or more representatives of the Bank Relations department attended each State bank convention held in the Fifth district in 1930, and several group meetings were also attended.



20

SIXTEENTH ANNUAL REPORT OF THE

In addition to field work, the department continued regular
analyses of methods used by member banks in computing required reserves. These analyses are made after each call report
of condition, and member banks are notified of variations in
their figures. The co-operation shown in this work by the
member banks has been highly gratifying.
BANK EXAMINATION DEPARTMENT

There was no change in the personnel of the Examination
Department of the Richmond reserve bank during 1930. The
force is composed of four examiners, a clerk and one stenographer, all working under the supervision of the Assistant Federal
Reserve Agent.
The work done by the Examination Department in 1930
was as follows:
Banks
Participation in examinations of State member banks in
conjunction with State Departments
37
Investigation in connection with merger of State member bank, non-member State bank and National bank.... 1
Special visits
3
State bank visited in connection with application for
membership
1
42

Branches
19

19

STOCKHOLDERS ANNUAL MEETING

The six annual meeting of the Stockholders of the Federal
Reserve Bank of Richmond was held at the Main Bank in Richmond on April 11, 1930, with the President, Waldo Newcomer
of the Baltimore Trust Co., Baltimore, Md., in the Chair. There
were 155 representatives of 111 banks present, and the Association also had the pleasure of welcoming the Honorable E. H.
Cunningham, a member of the Federal Reserve Board. All of
the Directors of the Federal Reserve Bank of Richmond and the
Baltimore Branch, and all of the Directors of the Charlotte
Branch except two, were present.
After Mr. Hoxton, Chairman, had welcomed the delegates
and the President had made his annual report, Committee reports were received and a Nominating Committee was appointed.
Mr. Delano, in a brief address, reviewed recent developments in
banking, and Mr. Coker then delivered an address on the relations of banking and agriculture. Governor Seay reviewed banking activities during the year and spoke on a number of subjects
of interest to member banks generally; among them he made an
analysis of the distribution of Federal reserve bank earnings.
This subject awakened very general interest, and it was discussed by several speakers.



FEDERAL RESERVE BANK OF RICHMOND

21

Upon recommendation of the Nominating Committee, the
following officers were elected to serve the Association for the
year 1930-1931: President, F. F. Beattie, First National Bank,
Greenville, S. C ; Vice-President, Henry H. McKee, National
Capital Bank, Washington, D. C.; Secretary, George H. Keesee,
Federal Reserve Bank of Richmond. Seven new members were
elected on the Advisory Committee, and the Committee selected
George R. Gehr, President of the First National Bank, Westminster, Md., as Chairman for the ensuing year.
PERSONNEL

The Board of Directors held twelve regular meetings in
1930. In the annual Fall election, member banks in Group 1 reelected Chas. E. Rieman, of Baltimore, as a Class A director, and
the same Group also re-elected Junius P. Fishburn, of Roanoke,
Va., as a Class B director, both gentlemen to serve three years
from December 31, 1930. The Federal Reserve Board reappointed Frederic A. Delano, of Washington, as a Class C director,
for a three year term beginning December 31, 1930, and redesignated him as Deputy Chairman for the year 1931. Mr.
Wm. W. Hoxton was redesignated as Chairman of the Board and
Federal Reserve Agent for 1931.
The Board of Directors, at the December meeting, re-elected
John Poole, President of the Federal-American National Bank
& Trust Co., Washington, D. C, as the representative on the
Federal Advisory Council for the Fifth District, and redesignated Chas. E. Rieman, President of the Western National Bank,
Baltimore, as alternate. During the year 1930, two changes were
made in the Boards of Directors of the Baltimore and Charlotte
Branches, due in each case to a resignation. On April 10, 1930,
C. L. Cobb, Cashier of the Peoples National Bank, Rock Hill,
S. C, was elected as a director of the Charlotte Branch, to fill
the unexpired term of W. J. Roddey, of Rock Hill, S. C, which
expires December 31, 1932. In December, L. S. Zimmerman,
Vice-President of the Maryland Trust Co., Baltimore, was elected
a director of the Baltimore Branch to fill the unexpired term of
Carter G. Osburn, which expires December 31, 1932. Members
of the Boards at Baltimore and Charlotte whose terms expired
on December 31, 1930, 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 or at the Charlotte Branch during 1930. The
following changes occurred at the Baltimore Branch: M. F.
Reese, Cashier, resigned February 28, 1930; Thomas I. Hays,
Assistant Cashier, resigned March 31, 1930; John R. Cupit,
formerly Assistant Cashier, was made Cashier as of March 15,



22

SIXTEENTH ANNUAL REPORT OF THE

1930; and John A. Johnston and Frank W. Wrightson were promoted to Assistant Cashierships March 15, 1930. Mr. Johnston
had been Manager of the Accounting Department and Mr.
Wrightson was formerly Manager of the Discount Department.
The total number of officers and employees at Richmond on
December 31, 1930, was 325 as compared with 332 on December
31, 1929. The total number of officers and employees in the
Richmond, Baltimore and Charlotte offices combined, on December 31, 1930, was 558 as compared with 575 on December 31,
1929. A reduction of 7 at Richmond, 6 at Baltimore, and 4 at
Charlotte reduced the total force by 17.
ADDITION TO MAIN BUILDING

In January 1930 the Federal Reserve Board authorized the
employment of an architect to prepare plans for the construction
of an addition to the Main Bank building at the corner of 9th
and Franklin Streets in Richmond, Va. Plans were completed
by Taylor & Fisher, Architects, of Baltimore, Md., who designed
and supervised the construction of the Baltimore Branch building, and on June 30 the Federal Reserve Board authorized the
Bank to contract with the J. A. Jones Construction Co., of Charlotte, N. C, for the erection of the addition, that firm having
been the lowest of ten bidders. The approximate cost of the
completed addition, including all equipment, will be $640,000.
Construction was started in July and it is expected that the addition will be ready for occupancy about September 1, 1931. When
this addition to the Main building is occupied the present annex
building will be vacated and all departments of the Bank will be
housed in one building.
BALTIMORE BRANCH

The Baltimore Branch territory embraces the State of
Maryland and thirty counties in northern West Virginia, as
follows:
Barbour
Berkeley
Braxton
Calhoun
Doddridge
Gilmer
Grant
Hampshire

Hardy
Harrison
Jackson
Jefferson
Lewis
Marion
Mineral
Monongalia

Morgan
Nicholas
Pendleton
Pleas ants
Preston
Randolph
Ritchie
Roane

Taylor
Tucker
Upshur
Webster
Wirt
Wood

At the close of the year 1930 there were 138 member banks
and 217 non-member banks in the territory served by the Baltimore Branch, all of the non-members being on the par list.
The actual number and amount of all transactions of the
Baltimore Branch are included in the aggregate volume of
business reported by the Head Office. However, the volume of



FEDERAL RESERVE BANK OF RICHMOND

23

checks handled by the Branch and the volume of coin received
and counted increased for the year 1930 as compared with the
year 1929, while the volume of currency received and counted
showed a slight decrease for the year, due to unusually large
totals for the year 1929 when the new size currency was put into
circulation.
The number of employees at the Baltimore Branch, including 4 officers, decreased from 185 at the close of 1929 to 179 at
the close of 1930.
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,
1930, 50 member banks, 27 par non-member banks, and 164
non-par 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

Working conditions at the Charlotte Branch were not
changed during the year 1930. The Branch occupies the entire
twentieth floor and a part of the basement of the First National
Bank Building. The vault is located in the basement, and the
Branch has the exclusive use of an elevator running between
the basement and the twentieth floor.
At the end of 1930 there were employed at the Charlotte
Branch 2 officers and 53 employees, compared with 2 officers
and 56 employees on December 31, 1929.
The number and amount of all transactions at the Charlotte
Branch are included in the aggregate volume reported by the
Federal Reserve Bank of Richmond.



24

SIXTEENTH ANNUAL REPORT OF THE

FISCAL AGENCY OPERATIONS

The work handled by the Federal Reserve Bank of Richmond as Fiscal Agent of the United States was smaller in 1930
than in 1929. There were five issues of Certificates of Indebtedness, and six special offerings of Treasury Notes sold on bids.
Total subscriptions to issues of Certificates of Indebtedness
amounted to $236,656,000, of which $105,133,000 was allotted.
Eighteen bids were offered for Treasury Notes, but only one,
for $500,000, was accepted by the Treasury. Including deliveries, redemption and exchanges of Certificates of Indebtedness,
Treasury Notes and Treasury Bonds, Victory and Liberty Bonds,
and War Savings Stamps, the Bank handled 29,794 pieces with
an aggregate value of $124,861,000 during 1930, compared with
50,569 pieces valued at $141,732,000 handled in 1929, a decrease
last year of 41.8 per cent in number of pieces and 11.9 per cent
in total value.
An analysis of the United States Treasurer's general account with the Bank shows that on January 1, 1930, the Treasurer had a balance of $2,150,000. Receipts for the credit of the
Treasurer during the year totaled $992,858,000, while disbursements totaled $994,564,000, leaving a balance due the Treasurer
on December 31, 1930, of $444,000. The receipts and disbursements by the Bank for the account of the Treasurer in 1930 were
about 11.5 per cent more than in 1929.
FIDUCIARY POWERS

During 1930 permission was granted to nine National
banks to exercise fiduciary powers under authority of Section
11 (k) of the Federal Reserve Act, as amended, seven receiving
permission to exercise full powers, one to exercise partial
powers, and one to exercise supplementary powers. The nine
banks whose applications to exercise fiduciary powers in whole
or in part were approved in 1930 were located as follows: District of Columbia 1, Maryland 2, Virginia 1, West Virginia 3,
and North Carolina 2.
Name of Bank

Location

National Capital Bank (x)
Washington, D. C
Farmers & Mechanics Nat'l Bank*.. Frederick, Md
Washington County National Bank- Williamsport, Md
Lynchburg, Va
First National Bank
Beckley, W. Va
National Exchange Bank
Logan, W. Va
First National Bank
Montgomery National Bank
Montgomery, W. Va
First National Bank
Lenoir, N. C
First National Bank
Wilson, N. C
(x) Granted Partial Powers.
(*) Granted Supplementary Powers.



Date Granted
12-11-30
10-30-30
3-10-30
7-10-30
6-19-30
6- 6-30
5-29-30
3- 4-30
3-25-30

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