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Federal R eserve Ban k
of

R ichmond

TWENTY-FIFTH ANNUAL REPORT
---- YEAR 1939 -----

R ich m o n d , V a .,

January 6, 1940.

To Member Banks
of the Fifth Federal Reserve District:
There is submitted herein a comparative statement of the condition of
the Federal Reserve Bank of Richmond at the close of business December
31,1939, and December 31,1938, together with a comparative statement of
profit and loss for the years 1939 and 1938, and other operating data.
Very truly yours,

President

COMPARATIVE STATEMENT OF CONDITION
D ecem ber

31,1939

D ecember

31,1938

Gold certificates on hand and due from U. S. Treasury.................................
Redemption fund— Federal Reserve notes..........................................................
Other cash .............................................................................................................

$ 405,603,330.26
934,635.00
20,223,145.30

$ 356,644,940.06
1,221,860.00
21,916,857.88

................................................................................

426,761,110.56

379,783,657.94

BILLS DISCOUNTED:
Secured by U. S. Government obligations, direct and guaranteed..............
Other bills discounted ......................................................................................

41,500.00
230,860.00

54,000.00
152.500.00

d is c o u n t e d ...................................................................

272,360.00

206.500.00

............
Bills bought in open market................................... — ....................... *
Industrial advances ...........................................................................................

......................
947,873.81

23,616.39
1,466,432.15

U. S. GOVERNMENT SECURITIES, d i r e c t a n d g u a r a n t e e ® :
Bonds .................................................................................................................
Notes ..........- ......... - ....................................... - ................................... ..............

70,076,000.00
58,778,500.00

39.460.500.00
54.291.500.00
26,569,000.00

T o t a l R eserves

T o ta l b ills

B ills......................................................................................................................................................
U. S. G o v e r n m e n t s e c u r i t i e s , d i r e c t a n d g u a r a n te e d ....

128,854,500.00

120,321,000.00

T o t a l b i l l s a n d s e c u r i t i e s ................................................. - ........... ............

130,074,733.81

122,017,548.54

Due from foreign banks................................. ...... .........................................
Federal Reserve notes o f other banks ....... ....................................................
Uncollected items ................................................................................................
Bank premises ................................................... - ...............................................
Other assets .........................................................................................................

2,007.68
4,189,320.00
64,944,486.51
2,544,624.23
3,484,748.99

7,401.68
2,946,340.00
47,040,022.83
2,620,812.92
2,507,548.30

TOTAL ASSETS.........................................

632,001,031.78

556,923,332.21

Federal Reserve notes in actual circulation ....................................................

229,549,820.00

208,286,735.00

DEPOSITS:
Member bank—reserve account .....................................................................
U. S. Treasurer—general account.................................................................
Foreign bank — ...................... ......... - ..... ................................. .....................
Other deposits ............................................- ---------------------- -------------------

282,998,014.51
25,590,078.78
17,473,282.46
2,513,049.24

231,575,701.52
48,507,379.14
8,575,995.05
2,033,040.69

T ota l

LIABILITIES:

-------------------------------------------------------------------

328,574,424.99

290,692,116.40

Deferred availability items .................................................................................
Other liabilities ............................................................... .................... ......... ......

58,805,169.12
9,643.00

43,155,218.66
108,099.73

TOTAL LIABILITIES...............................

616,939,057.11

542,242,169.79

Capital paid in ................... ........ ........................................................................
Surplus (Section 7) ..................................................................................
Surplus (Section 13b) .........................................................................................
Other capital accounts ........................................................................................

5,171,000.00
5,247,218.46

5,004,900.00

3,245,938.26
1,397,817.96

4,982,671.81
3,292,772.65
1,400,817.96

TOTAL LIABILITIES AND CAPITAL ACCOUNTS

632,001,031.78

556,923,332.21

T o t a l D e p o s it s

CAPITAL ACCOUNTS;

Contingent liability on bills purchased for foreign
Commitments to make industrial advances.............. .




3,265.04

760,572.67

1,281,852.95

COMPARATIVE PROFIT AND LOSS ACCOUNT
E a r n in g s :

1939

Discount on bills discounted ..................................................................... .
... .......
Discount on bills purchased .............................................................................. .... .......
Interest earned on Industrial Advances under Section 13b...................... ... .............
Fees received on Commitments to make Industrial Advances.....................................
Interest on United States securities................................................................................
Other earnings ..............- ................................ ...............................................................

$

1938

4,983.41 $
9,042.05
99.89
112.21
61,822.60
82,454.32
9,334.66
15,074.47
1,941,562.30
1,762,670.88
27,683.82
46,598.37

Total Current Earnings................... ................................................. ..........

2,045,486.68

1,915,952.30

Operating expenses (including depreciation on bank premises) after deducting
reimbursements received for certain Fiscal Agency and other expenses...............
Assessments for expenses of Board of Governors..................................................... .
Cost o f Federal Reserve Currency.......... .....................................................................

1,539,502.79
69,372.67
81,157.39

1,515,248.54
74,329.27
99,637.46

...

1,690,032.85

1,689,215.27

Current N et Earnings.................. ............. ............... ....... ............. ......... .......... .......

355,453.83

226,737.03

229,376.12
21,095.14

437,837.06
33,882.56

........ .....

250,471.26

471,719.62

Contributions to F. R. Retirement System on account of prior service................
Losses and reserves for losses on Industrial Advances (n e t)................
........
Other deductions ..........— .................— .............................. - .................................. .
....

...... ...........
70,554.54
12,244.61

314,088.00
161,248.42
22,245.21

82,799.15

497,581.63

E xpe n ses:

Total Net Expenses...................

A d d it io n s

to

.......... ...........

......

.

... .........

C u r r e n t N e t E a r n in g s :

Profits on sales of U. S. Government securities.......................................................
Other additions .................................— .......................................................................
Total additions ................ ............................. .................. ... .
D e d u c t io n s

fro m

C u r r e n t N e t E a r n in g s :

Total deductions ........ ...................... .......... ............ ............................... .....
Net addition ....... .................................................................................

..

167,672.11

A vailable for dividends, payment to Treasurer of U. S. undhr Section 13b ,
AND SURPLUS ACCOUNTS ..................- ................................ - .........................................

523,125.94

200,875.02

Dividends paid member banks........................................................... . ................... —
Payment to Treasurer of U. S. under Section 13b o f F. R. A ct......... ................
Net addition to surplus accounts ---------- ---- ------- ... ............ .............................

305,413.69
..................
217,712.25

297,732.38

25,862.01*

96,857.36f

S U R P L U S A C C O U N T (S e c tio n 7 )
Balance at close of previous year.......................... .. ......... ........................... ...............
Credited from profits o f year........................... ............................................... ...........

$4,982,671.81 $ 4,963,636.05
19,035.76
264,546.65
5,247,218.46

4,982,671.81

Balance at close of previous year...................................................................................
Charged for year (Proportion o f excess o f expenses, charge-offs and reserves on
Industrial Loans over earnings and recoveries thereon)........................................

$ 3,292,772.65

$ 3,408,665.77

46,834.40

115,893.12

B a la n c e a t c lo s e o f c u r r e n t y e a r ................. - .......................................

3,245,938.25

3,292,772.65

Balance

at close of current year.......................................................... .

SURPLUS ACCOUNT (Section 13b)

CAPITAL STOCK ACCOUNT
(Representing amount paid in, which is 50% of amount subscribed)
Balance at close o f previous year.............- .....................................................................
Issued during the year................................................ - ..................................................

$ 5,004,900.00
223,850.00

$4,895,950.00
141,050.00

Cancelled during the year................................................................................................

5,228,750.00
57,750.00

5,037,000.00
32,100.00

B a la n c e a t c lo s e o f c u r r e n t y e a r .............................................................

5,171,000.00

5,004,900.00

♦Net deduction from current net earnings.
fN et deduction from surplus accounts.




3

VOLUME OF PRINCIPAL OPERATIONS
Total
Number of
Items

C hecks H an dled :
Y ear
Y ear

1939 (299 days)
1938 (301 days)

1937
1936
Y e a r 1935
Y e a r 1934

$179
164

13,174,474,000
11,897,385,000

238,798

171
175

12,145,850,000

256,903

183

$13,720,123,000

76,814,000
74,114,000
71,878,000

JLraiiy Averajtes
Number
of Items
Amount

231,505
197,734

$45,886,699
40,351,661

246,226

43,769,016
39,526,196
34,672,884

days)
days)
days)
days)

69,683,000
59,518,000
55,643,000

9,638,415,000

173

184,860

32,021,312

Y ear

1933 (301 days)
Y e a r 1932 (301 days)

46,191,000
46,554,000

7,659,951,000
7,809,312,000

166

25,448,342

168

153,458
154,664

1931 (301 days)
Y e a r 1930 (301 days)
Y e a r 1929 (302 days)

52,652,000
54,109,000
55,730,000

10,435,697,000

198

174,923

34,670,090

12,795,015,000
14,118,820,000

236

179,764

42,508,355

1928 (302 days)
Y e a r 1927 (302 days)

54,570,000

13,990,057,000
13,502,105,000

253
256

184,536
180,695

46,751,060
46,324,692

255

175,030
166,987
159,509

44,708,957

283

153,879

43,600,763

278
204

156,900

43,560,875

142,000
129,572

29,015,955

110,960

37,848,504

Y ear

Y ear

(301
(301
(301
(301

Average
Amount
Per Item

Total
Amount

Y ear

Y ear

1926
Y e a r 1925
Y e a r 1924
Y e a r 1923
Y ear

Y ear

(302
(302
(304
(301

days)
days)
days)
days)

1922 (302 days)

1921 (303 days)
Y e a r 1920 (304 days)
Y ear

C urrency

and

10,436,538,000

52,859,000
50,430,000
48,171,677
46,779,081

14,038,542,000
13,254,632,000

47,226,755

13,111,823,500

42,884,054
39,260,432

8,762,818,547
8,620,888,130

33,731,801

11,505,945,224

13,924,751,000

276
291

220
341

Coin H andled :

25,944,558

46,108,447
46,485,238

28,451,776

1939

1938

Currency received (including new notes):
Number of notes ____
Amount .............. .......

191,699,811
$ 673,096,200

182,127,805
$ 624,653,700

194,506,343
$ 675,090,500

183,676,064
$ 630,055,100

Currency paid out (including notes returned for redemption):
Number of notes .................
Amount ......... ......................
Coin received (including new coin) :
Number of coins
Amount .............

$

241,389359
19,091,300

$

196,072,926
16,187,600

$

242,266,865
19,054,900

%

198,942,485
16,541400

Coin paid out (including coin returned for redemption):
Number of coins
Amount .............




4

VOLUME OF PRINCIPAL OPERATIONS
(Continued)

D irect R outed Cash L etters :

1939

1938

176,171
$ 1,874,402,000

Number
Amount

199,520
$ 2,036,240,000

N on -C ash Collection I tem s R eceived :
Number
Amount

$

Coupons P aid — F rom D irect
Governm ent Oblig atio n s :

and

of

F unds

for

$

286,805
242,672,000

$

598,040
16,936,000

$

621,815
18,192,000

F ully Guaranteed

Number .....................................................................................
Amount .................................................................... .................
T ransfers

276,440
245,686,000

M ember B a n k s :

Number ..................................................... ......
Amount ---------------------------------------------------

56,686
$ 5,372,945,000

60,035
$ 4,978,735,000

$ 7,124,893,000
7,113,382,000

$ 6,555,063,000
6,513,917,000

18
657

18
663

675

681

National banks___________________________________________
State banks------------------------------ ------ — .......................... .........

334
77

337
69

T otal....................................................................................

411

406

I nterdistrict Settlem ent F und D a ily T ran sit Clearin gs :
Total received from F. R. Banks and Branches.................................
Total paid to F. R. Banks and Branches............................................

PERSONNEL
Number of officers and employees at end of year:
Officers ............................................................
Employees ..
Total

MEMBER BANKS
Number of member banks at end of year:

During the year 1939, the ten banks listed below, located in the Fifth Federal Reserve District, became members on
the dates shown:
January

24 Merchants and Farmers Bank, Portsmouth, Va.

February

9 Southern Bank & Trust Company, Richmond, Va.

September

5 The Commercial Bank of Camden, Camden, S. C.

”
October

27 Belington Bank, Belington, W. Va.
31 Bank of Phoebus, Phoebus, Va.

November 16 Farmers Bank of Mathews, Mathews, Va.
”
December

22 Bank of Smithfield, Smithfield, Va.

»

6 Security Savings and Commercial Bank, Washington, D. C.
26 City National Bank of Fairmont, Fairmont, W. Va. (primary organization)

”

29 Citizens Bank of Poquoson, Odd, Va.

Three member banks consolidated with three other member banks and two became insolvent. There was a net
gain in membership of five hanks.




5

DIRECTORS AND OFFICERS
FOR YEAR 1940
DIRECTORS

Class A
P resid en t, P la n t e r s N a tl. B a n k & T r u s t Co.,
R o ck y M ou n t, N. C.

JAMES C. BRASWELL, 1940,
R o ck y M ou n t, N. C.
L. E. JOHNSON, 1941,

C h a ir m an of B oard, F irst N ational B a n k ,
A lderson, W . V a .

A u je rs o n , W . V a.

P resident , W estern N atl . B a n k
B altimore , M d.

CHAS. E. RIEMAN, 1942,
B a ltim ore, Md.

of

B altimore ,

Class B
Ch a irm an of B oard, Capital T ransit Co.,
W ash in gto n , D. C.

JOHN H HANNA, 1940,
W a s h in g to n , D. C.

P resident and T reasurer, C heraw Cotton M ills , I n c .,
C heraw , S. C.

EDWIN MALI.OY, 1941,
C h era w , S. C.
CHAS. C. REED, 1942,

V ice P re sid e n t & G e n l. M anager, W illia m s & Reed, In c.,
W h o le s a le D ry Goods,
R ichm ond , V a .

R ich m on d, V a.

Class C
ROBERT LASSITER, 1940,
C h a r lo t t e , N. C.

Chairman of the Board.

CHARLES P. McCORMICK, 1941,
B a ltim o re , Md.

P resid en t, M cC orm ick & Company,
M frs . of T eas , Spices , E xtracts , I nsecticides , E tc .,
Baltimore , M d.

W G, WYSOR, 1942,

Deputy Chairman of the Board.

C h a ir m a n of B oard, M ooresville Cotton M ills ,
M ooresville , N. C.

General M anager , S outhern States Cooperative, I nc .,
R ichmond , V a .

R ich m on d, V a.

OFFICERS

ROBERT LASSITER,
C h airm an o f t h e B oard a n d
F e d e ra l R eserve A g e n t.

HUGH LEACH,

W. W. DILLARD,

P resid en t.

A s s is t a n t C a sh ier.

EDWARD WALLER, JR.,

J. S. WALDEN, JR.,

A s s is t a n t C a s h u z l

F ir s t V ic e P resid en t.

ALBERT S. JOHNSTONE,
A s s is t a n t C a sh ier.

J. G. FRY,

C. L. GUTHRIE,

V ice P resident .

A s s is t a n t C a sh ier.

GEORGE H. KEESEE,
C a sh ier.

R. W. MERCER,
R. S. BROCK, JR.,

A ssistant Cash ier .

A u d itor.

MAXWELL G. WALLACE,
C o u n s e l.

MEMBER FEDERAL ADVISORY COUNCIL

R. M. HANES, 1940,
P resid en t, W a ch o v ia B a n k & T r u s t
W in s to n -S a le m , N. C.

Company,

INDUSTRIAL ADVISORY COMMITTEE

J. G. HOLTZCLAW, Chairman,
P r e sid e n t, V ir g in ia E l e c t r i c & P o w e r
R ich m on d , V a .

WALKER D. STUART,
P r e sid e n t, R ich m on d H a rd w a re
R ich m on d, V a.

OVERTON D. DENNIS,
D o m in ion O il Co m p a n y ,
R ichm ond , V a .




Co.,

GEORGE E. PROBEST, JR.,
Co.,

A sst . Sbct ’ y & A sst . T reas .,
K opper8 C om pan y — B artu bit H ayw ard D i ?.,
B altimore , M d.

W. L. MANNING,
P re sid e n t, R osem ary M a n u fa c tu r in g
R o a n o k e Rapids, N. C.

Co.,

DIRECTORS AND OFFICERS
FOR YEAR 1940
(Continued)

BALTIMORE BRANCH
DIRECTORS
W. R. MILFORD, 1940,

Managing D irector.

B a ltim o r e , Md.

JAMES DIXON, 1940,

P resident, T h e E aston N atl . B a n k
E aston , Md.

E aston , Md.

GEORGE W. REED, 1941,

of

Maryland ,

P resident, N ational M arine Ba n k ,
B altimore, Md.

B a ltim o re , Md.

JAMES C. FENHAGEN, 1942,
B a ltim o re , Md.

W. FRANK ROBERTS, 1940,
B a ltim o re , Md.

W. FRANK THOMAS, 1941,
W e s tm in s te r, Md.

JOSEPH D. BAKER, JR., 1942,
M o n k to n , Md.

C h a ir m an , E xecutive Committee , B altimore N atl . B k .,
B altimore, Md.
P resident , Standard Ga s E quipment Corporation,
B altimore, Md .
Construction E ngineer
W estminster , Md .

and

R eal E state Management ,

S e cre ta ry & T reasu rer, Standard Lim e & S to n e Co.,
B a ltim ore, Md.

OFFICERS
W. R. MILFORD, M an aging D irector.
JOHN R. CUPIT, C ashier.
J. A . JOHNSTON, A s s is ta n t C ashier.
D. F. HAGNER, A s s is ta n t C ashier.

CHARLOTTE BRANCH
DIRECTORS
W. T. CLEMENTS, 1940,
C h a r lo t t e , N. C.

Managing D irector.

T. E. HEMBY, 1940,

E xecu tiv e V ic e P resid en t, A m erica n T r u s t Company,
C h a r lo tt e , N. C.

C h a r lo t t e , N . C.

J. GERALD COWAN, 1941,
A s h e v ille , N. C.

V ice P resid en t, W a ch ov ia B a n k & T r u s t Company,
A s h e v ille , N. C.

B. M. EDWARDS, 1942,

E xecu tive V ic e P resid en t, S ou th C a ro lin a N a tl. B a n k ,
Colum bia, S. C.

C olu m bia, S. C.

GEORGE M. WRIGHT, 1940,
G r e a t F a l l s , S. C.

P resident , R epublic Cotton M ills ,
Great F alls , S. C.

GEORGE S. HARRIS, 1941,
C h a r lo t t e , N. C.

B TUiiiTivi V ice P resident , Springs Cotton M ills ,
L ancaster , S. C.

D. W. WATKINS, 1942,
CLEM80N, S. C.

D irector of E xtension , Clemson C ollege,
C lem son , S. C.




OFFICERS
W. T. CLEMENTS, Managing D irector.
R. L. CHERRY, Cashdhl
L. D . BROOKS, A ssistant Cashier.
7

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