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I I Federal R eserve B a n k of R ichmond TWENTY-SIXTH ANNUAL REPORT ----- YEAR 1940 ------- R i c h m o n d , V a ., January 6, 1941. 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, 1940, and December 31, 1939, together with a comparative statement of profit and loss for the years 1940 and 1939, and other operating data. Very truly yours, President CO M PARATIVE STATEM ENT OF CONDITION ASSETS: D ecem ber 31, 1940 D ecem ber 31, 1939 Gold certificates on hand and due from U. S. Treasury.................................... $ 553,293,809.24 Redemption fund— Federal Reserve notes.............................................................. 1,107,900.00 934,635.00 Other cash ..................................................................................................................... 18,805,938.67 20,223,145.30 ....................................................................................... 573,207,647.91 426,761,110.56 T o t a l R eserves $ 405,603,330.26 BILLS DISCOUNTED: Secured by U. S. Government obligations, direct and guaranteed............... 10,000.00 41,500.00 Other bills discounted ............................................................................................. 40,721.00 230,860.00 d is c o u n t e d ........................................................................ 50,721.00 272,360.00 Industrial advances ................................................................................................... 781,190.84 947,873.81 68,167,500.00 47,732,500.00 70,076,000.00 58,778,500.00 G o v e r n m e n t s e c u r i t ie s , d ir e c t a n d g u a r a n t e e d .... 115,900,000.00 128,854,500.00 T o ta l b ills U. S. GOVERNMENT SECURITIES, d ir e c t a n d g u a r a n te e d : Bonds ......................................................................................................................... Notes ................................................................................................................ .......... T o ta l U. S. T o t a l b i l l s a n d s e c u r i t i e s .................................................................. 116,731,911.84 130,074,733.81 Due from foreign b a n k s............................................................................................. Federal Reserve notes of other banks .................................................................... 2,008.39 3,328,240.00 2,007.68 4,189,320.00 Uncollected items ....................................................................................................... Bank premises ............................................................................................................ 76,132,408.87 2,590,044.55 64,944,486.51 2,544,624.23 Other assets ................................................................................................................. 2,755,749.00 3,484,748.99 TOTAL ASSETS............................................ 774,748,010.56 632,001,031.78 Federal Reserve notes in actual circulation .... ................................................... 283,520,205.00 229,549,820.00 DEPOSITS: Member bank—reserve account .......................................................................... U. S. Treasurer— general account ...................................................................... Foreign ..................................................................................................................... 354,132,060.99 12,636,367.83 33,322,184.71 282,998,014.51 25,590,078.78 17,473,282.46 Other deposits ......................................................................................................... 4,243,970.08 2,513,049.24 LIABILITIES; ...................................................................................... 404,334,583.61 328,574,424.99 Deferred availability items ....................................................................................... 70,836,075.68 58,805,169.12 Other liabilities ..................................................................................... ..................... 245,732.76 9,643.00 TOTAL LIAB ILITIES.................................. 758,936,597.05 616,939,057.11 Capital paid in ........................................................................................................... Surplus (Section 7) .................................................................................................. Surplus (Section 13b) ............................................................................................... Other capital accounts .............................................................................................. 5,365,650.00 5,247^218.46 3,244,217.38 1,954,327.67 5,171,000.00 5,247,218.46 3,245,938.25 1,397,817.96 TOTAL LIABILITIES AND CA PITAL ACCOUNTS 774,748,010.56 632,001,031.78 T o t a l D e p o s its CAPITAL ACCOUNTS: Commitments to make industrial advances............................................................ 2 539,713.53 760,572.67 CO M PARATIVE PROFIT A N D LOSS A C C O U N T E a r n in g s : 1940 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 ............................................................................ ............................................ 1939 $ 2,349.45 $ 54,207.02 7,453.15 2,152,495.97 28,116.68 4,983.41 99.89 01,822.GO 9,334.66 1,941,562.30 27,683.82 Total Current Earnings..................................................................................... 2,244,622.27 2,045,486.68 E xpenses : 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 of Federal Reserve Currency...................................................................................... 1,599,608.84 74,242.58 87,641.62 1,539,502.79 69,372.67 81,157.39 Total Net Expenses............................................................................................. 1,761,493.04 1,690,032.85 C u r r e n t N e t E a r n i n g s ......................................................................................................... 483,129.23 355,453.83 A d d it io n s to C u r r e n t N e t E a r n i n g s : Profits on sales of U. S. Government securities.............................................................. Other additions ....................................................................................................................... 608,518.15 72,575.62 229,376.12 21,095.14 Total additions ................................................................................................... 681,093.77 250,471.26 D e d u c t io n s f r o m C u r r e n t N e t E a r n i n g s : Charge-Off on Other Real E state.......................... ............................................................. Reserve for alterations and improvements— Bank Premises.......................................... Losses and reserves for losses on Industrial Advances (n e t)...................................... Other deductions ..................................................................................................................... 35,433.07 225,000.00 30,500.00 741.26 70,554.54 12,244.61 Total deductions ................................................................................................. 291,674.33 82,799.15 Net addition ....................................................................................................... 389,419.44 167,672.11 A v a i l a b l e f o r d iv id en d s, p a y m e n t t o T r e a s u r e r o f U. S. u n d e r S e c t io n 13b, AND SURPLUS ACCOUNTS ..................................................................................................... 872,548.67 523,125.94 Dividends paid member banks............................................................................................... Payment to Treasurer of U. S. under Section 13b of F. R. A ct................................ Net addition to surplus accounts ....................................................................................... 317,759.83 .................. 554,788.84 305,413.69 Balance at close of previous year....................................................................................... Credited from profits of year............................................................................................... Transferred to Reserve for contingencies.......................................................................... $ 5,247,218.46 556,509.71 556,509.71 $ 4,982,671.81 264,546.65 B a l a n c e a t c l o s e o f c u r r e n t y e a r .............................................................. 5,247,218.46 5,247,218.46 Balance at close of previous year......................................................................................... Charged for year (Proportion of excess of expenses, charge-offs and reserves on Industrial Loans over earnings and recoveries thereon).......................................... $ 3,245,938.25 $ 3,292,772.65 1,720.87 46,834.40 B a l a n c e a t c l o s e o f c u r r e n t y e a r .............................................................. 3,244,217.38 3,245,938.25 217,712.25 SURPLUS ACCO UN T (Section 7) SURPLUS ACCO UN T (Section 13b) CAPITAL STOCK A C C O U N T (Representing amount paid in, which is 50% of amount subscribed) Balance at close of previous year......................................................................................... Issued during the year........................................................................................................... $ 5,171,000.00 219,750.00 $ 5,004,900.00 223,850.00 Cancelled during the year..................................................................................................... 5,390,750.00 25,100.00 5,228,750.00 57,750.00 B a l a n c e a t c l o s e o f c u r r e n t y e a r ................................................................ 5,365,650.00 5,171,000.00 3 V O L U M E OF PRINCIPAL OPERATIONS Checks H andled: Total Number of Items Total Amount Average Amount Per Item Daily Averages Number Amount o f Items $51,411,409 Y ear 1940 (301 days)............ 79,938,000 $15,474,834,000 $194 265,575 Y ear 1939 (299 days)............ 76,814,000 13,720,123,000 179 256,903 45,886,699 Y ear 1938 (301 days)............ 74,114,000 12,145,850,000 164 246,226 40,351,661 Y ear 1937 (301 da ys)............ 71,878,000 13,174,474,000 183 238,798 43,769,016 Y ear 1936 (301 d a ys)............ 69,683,000 11,897,385,000 171 231,505 39,526,196 Y ear 1935 (301 days)............ 59,518,000 10,436,538,000 175 197,734 34,672,884 9,638,415,000 173 184,860 32,021,312 Y ear 1934 (301 da ys)............ 55,643,000 Y ear 1933 (301 d ays)........... . 46,191,000 7,659,951,000 166 153,458 25,448,342 Y ear 1932 (301 d a ys)............. 46,554,000 7,809,312,000 168 154,664 25,944,558 Y ear 1931 (301 d a ys)............ 52,652,000 10,435,697,000 198 174,923 34,670,090 42,508,355 Y ear 1930 (301 da ys)............ 54,109,000 12,795,015,000 236 179,764 Y ear 1929 (302 days)............ 55,730,000 14,118,820,000 253 184,536 46,751,060 Y ear 1928 (302 d a ys)............ 54,570,000 13,990,057,000 256 180,695 46,324,692 Y ear 1927 (302 da ys)............ 52,859,000 13,502,105,000 255 175,030 44,708,957 Y ear 1926 (302 d a ys)............ 50,430,000 13,924,751,000 276 166,987 46,108,447 Y 1925 (302 d a ys)............ 48,171,677 14,038,542,000 291 159,509 46,485,238 ear Y ear 1924 (304 d a ys)............ 46,779,081 13,254,632,000 283 153,879 43,600,763 Y ear 1923 (301 da ys)............ 47,226,755 13,111,823,500 278 156,900 43,560,875 29,015,955 Y ear 1922 (302 days)............ 42,884,054 8,762,818,547 204 142,000 Y ear 1921 (303 d a ys)............ 39,260,432 8,620,888,130 220 129,572 28,451,776 Y ear 1920 (304 da ys)............ 33,731,801 11,505,945,224 341 110,960 37,848,504 C u r r e n c y a n d C o in H a n d le d : 1940 1939 Currency received (including new notes) : Number o f notes ................................................................................................. Amount ................................................................................................................. $ 214,926,198 761,693,700 $ 191,699,811 673,096,200 $ 214,936,187 764,290,300 $ 194,506,343 675,090,500 $ 267,773,758 20,669,100 $ 241,389,859 19,091,300 $ 265,152,957 20,734,400 $ 242,266,865 19,054,900 Currency paid out (including notes returned for redemption) : Number o f notes ................................................................................................. Amount ................................................................................................................. Coin received (including new c o in ): Number o f coins ................................................................................................. Amount ................................................................................................................. Coin paid out (including coin returned fo r redemption) : Number o f coins ................................................................................................. Amount ................................................................................................................. 4 V O LU M E OF PRINCIPAL OPERATIONS (Continued) D ir e c t R o u te d C a sh L e tt e r s : Number ................................................................................................................. Amount ................................................................................................................. 1940 1939 180,085 $ 2,324,592,000 176,171 $ 1,874,402,000 N o n -C a s h C o l l e c t io n I t e m s R e c e i v e d : Number ................................................................................................................. Amount .............................................................................................................. C o u p o n s P a id — F r o m D ir e c t G o v e r n m e n t O b l i g a t io n s : and of F unds for 281,140 211,138,000 $ 276,440 245,686,000 $ 573,207 17,387,000 $ 598,040 16,936,000 F u lly Gu aranteed Number ................................................................................................................. Amount ................................................................................................................. T ransfers $ M em ber B a n k s : Number ................................................................................................................ Amount ................................................................................................................. 55,651 $ 5,635,545,000 56,686 $5,372,945,000 $ 8,182,254,000 8,091,140,000 $ 7,124,893,000 7,113,382,000 Officers ................................................................................................................... Employees ............................................................................................................ 18 657 18 657 Total .......................................................................................................... 675 675 National banks .................................................................................................... State banks .......................................................................................................... 336 95 334 77 Total ........................................................................................................... 431 411 I n t e r d is t r ic t S e t t l e m e n t F u n d D a i l y T r a n s i t C l e a r i n g s : Total received from F. R. Banks and Branches....................................... Total paid to F. R. Banks and Branches................................................... PERSON N EL Number of officers and employees at end of year: M EM BER BANKS Number of member banks at end of year: During the year 1940, the twenty-one banks listed below, located in the Fifth Federal Reserve District, became members on the dates shown: 20 The Citizens and Southern National Bank of South Carolina, Charleston, S. C. January City National Bank o f Winston-Salem, Winston-Salem, N. C. February 17 The Citizens-Waynesboro Bank and Trust Company, Waynesboro, Ya. March 1 Bank o f Christiansburg, Christiansburg, Ya. March 5 The Bank o f Wadesboro, Wadesboro, N. C. 6 March The Bank o f Monroe, Union, W. Va. March 8 The Bank of Quinwood, Quinwood, W. Va. 15 April Farmers and Bank o f Amherst, Amherst, Va. 22 May Commercial National Bank of Kinston, Kinston, N. C. July 3 The City Bank of Washington, Washington, D. C. July 11 The Farmers and Merchants Bank o f Rich Creek, Rich Creek, Va. July 27 Shenandoah County Bank and Trust Company, Woodstock, Va. August 23 Farmers and Merchants Bank of Blacksburg, Virginia, Blacksburg, Va. September 6 The Farmers Bank o f Edinburg, Inc., Edinburg, Va. October 18 South Boston Bank and Trust Company, South Boston, Va. October 18 Bank o f Greene, Inc., Stanardsville, Va. October 24 The Planters Bank o f Bridgewater, Bridgewater, Va. November 4 Bank of Alberta, Inc., Alberta, Va. November 14 Peoples’ Bank of Mount Jackson, Mount Jackson, Va. November 19 State Bank o f Remington, Inc., Remington, Va. November 23 Bank of Shawsville, Inc., Shawsville, Va. December 30 One member bank was absorbed by a non-member bank. There was a net gain in membership of twenty banks. DIRECTORS AND OFFICERS FOR YEAR 1941 DIRECTORS ROBERT LASSITER, C h a ir m a n of- t h e B o a rd a n d F e d e r a l R eserve A g e n t . W. G. WYSOR, D eputy Ch a ir m a n of th e B oard . Class A L. E. JOHNSON, 1941, A ld erso n , C h a i r m a n o f B oard , F A lderson , W . V a . W . Va. CHAS. E. RIEM AN, 1942, B a lt i m o r e , ir s t N a t io n a l B a n k , P r e s id e n t , W e s t e r n N a t l . B a n k B a l t im o r e , M d . M d. JAM ES C. BRASW ELL, 1943, R o c k y M o u n t , N. C. of B a l t im o r e , P r e s id e n t , P l a n t e r s N a t l . B a n k & T r u s t C o ., R o c k y M o u n t , N . C. Class B EDW IN M ALLOY, 1941, C h e r a w , S. C. P r e s id e n t a n d T r e a s u r e r , C h e r a w C o t t o n M il l s , I n c ., C h e r a w , S . C. CHAS. C. REED, 1942, R ic h m o n d , V a . V ice P r e s id e n t & G e n l . M a n a g e r , W W h o l e s a l e D r y G oods , R ic h m o n d , V a . JOHN H. HAN N A, 1943, W a s h i n g t o n , D. C. C h a ir m a n o f B o a rd , C a p i t a l T r a n s i t W a s h i n g t o n , D . C. il l ia m s & R e ed , I n c ., Co., Class C CHARLES P. McCORMICK, 1941, B a lt i m o r e , M d. W. G. W YSOR, 1942, P r e s i d e n t , M c C o r m ic k & C o m p a n y , M f r s . of T e a s , S p ic e s , E x t r a c t s , I n s e c t ic id e s , E t c ., B a l t im o r e , M d . G e n e r a l M a n a g e r , S o u t h e r n S t a t e s C o o p e r a t iv e , I n c ., R ic h m o n d , V a . R ic h m o n d , V a . ROBERT LASSITER, 1943, C h a r l o t t e , N. C. C h a ir m a n o f B o a rd , M o o r e s v i l l e C o t t o n M i l l s , M o o r e s v i ll e , N. C. OFFICERS W. W. DILLARD, HUGH LEACH, A s s is ta n t P r e s id e n t . C a s h ie r . EDW ARD W ALLER, JR., J. S. WALDEN, JR., A s s i s t a n t C a s h ie r . F i r s t V ic e P r e s id e n t. ALB E R T S. JOHNSTONE, A s s is ta n t J. G. FRY, V ic e C a s h ie r . C. L. GUTHRIE, P r e s id e n t . A s s i s t a n t C a s h ie r . R. W. MERCER, GEORGE H. KEESEE, A C a s h ie r . s s is t a n t C a s h ie r . R. S. BROCK, JR., A u d it o r . M AXW ELL G. W ALLACE, C o u n s e l. MEMBER FEDERAL ADVISORY COUNCIL R. M. HANES, 1941, P r e s id e n t , W a c h o v ia B a n k & T r u s t C o m p a n y , W i n s t o n - S a l e m , N. C. INDUSTRIAL ADVISORY COMMITTEE J. G. HOLTZCLAW, Chairman, P r e s id e n t , V i r g i n i a E l e c t r i c & P o w e r Co., R ic h m o n d , V a . W ALKER D. STUART, P r e s id e n t , R i c h m o n d H a r d w a r e R ic h m o n d , V a . OVERTON D. DENNIS, D o m in io n O il Co m p a n y , R ic h m o n d , V a . W. L. MANNING, Co., 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 R a p id s, N. C. LUDLOW H. BALDW IN, P re sid e n t, T e r m in a l W a r e h o u s e B a lt i m o r e , M d. Co., C o., DIRECTORS AND OFFICERS FOR YEAR 1941 (Continued) BALTIMORE BRANCH DIRECTORS W . R. MILFORD, B a l t i m o r e , M d. 1941, GEORGE W . REED, B a lt i m o r e , M d. M a n a g in g D irector . 1941, JAMES C. FENHAGEN, B a lt i m o r e , M d. P r e s id e n t , N a t i o n a l B a l t im o r e , M d . 1942, M a r in e Ba n k , C h a i r m a n , E x e c u t iv e C o m m i t t e e , B a l t im o r e N a t l . B k ., B a l t im o r e , M d . JAM ES DIXON, 1943, P r e s id e n t , T h e E a s t o n N a t l . B a n k E a s t o n , M d. E a s t o n , M d. W. FRA N K THOMAS, 1941, C o n s t r u c t io n E n g in e e r W e s t m in s t e r , M d . W e s t m i n s t e r , M d. JOSEPH D. BAKER, JR., 1942, M aryland, R eal E state M a n a g e m e n t , S e c r e t a r y & T r e a s u r e r , S t a n d a r d L i m e & S t o n e C o ., B a l t im o r e , M d . M o n k t o n , M d. W . FRA N K ROBERTS, B a lt i m o r e , M d. and of 1943, P r e s id e n t , S t a n d a r d G a s E q u i p m e n t C o r p o r a t io n , B a l t im o r e , M d . OFFICERS W. R. MILFORD, M a n a g in g D ir e c to r . JOHN R. CUPIT, J. C a s h ie r . JOHNSTON, A. D. F. HAGNER, A s s i s t a n t C a s h ie r . A s s i s t a n t C a s h ie r . CH A RL O T TE BRANCH DIRECTORS W. T. CLEMENTS, 1941, C h a r l o t t e , N. C. M a n a g in g D irector . J. GERALD COWAN, 1941, A s h e v i l l e , N. C. V ic e P r e s id e n t, W a c h o v i a B a n k A s h e v i l l e , N . C. B. M. EDW ARDS, 1942, E x e c u t iv e V ice P r e s id e n t , S o u t h C a r o l i n a N a t l . B a n k , C o l u m b ia , S . C. C o l u m b i a , S , C. & T r u s t C om pany, T. E. HEMBY, 1943, C h a r l o t t e , N. C. E x e c u t iv e V ic e P r e s i d e n t , A m e r ic a n C h a r l o t t e , N. C. CHARLES L. CREECH, SR., 1941, W i n s t o n - S a l e m , N. C. C h a i r m a n of B oard , B . F . H u n t l e y F u r n it u r e C o m p a n y , & Ge n e r a l M a n a g e r , U n iq u e F u r n it u r e M a k e r s , W in s t o n -S a l e m , N . C. D. W. W ATKIN S, 1942, C le m s o n , S. C. D irector of E x t e n s i o n , C l e m s o n C o l l e g e , C l e m s o n , S. C. GEORGE M . WRIGHT, G r e a t F a l l s , S. C. 1943, P r e s id e n t , R e p u b l ic C o t t o n M i l l s , G r e a t F a l l s , S. C. OFFICERS W. T. CLEMENTS, M a n a g in g D ir e c t o r . R. L. CHERRY, C a s h ie r . L. A s s i s t a n t C a s h ie r . D. BROOKS, 7 T r u s t C om pany,
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