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THIRTEENTH ANNUAL REPORT
TO THE

FEDERAL RESERVE BOARD
BY THE

FEDERAL RESERVE AGENT
FEDERAL RESERVE BANK
SAN FRANCISCO

FOR THE

YEAR ENDED DECEMBER 31, 1927




THIRTEENTH ANNUAL REPORT
TO THE

FEDERAL RESERVE BOARD
BY THE

FEDERAL RESERVE AGENT
FEDERAL RESERVE BANK
SAN FRANCISCO

FOR THE

YEAR ENDED DECEMBER 31, 1927




DIRECTORS AND OFFICERS
OF THE

FEDERAL RESERVE BANK OF SAN FRANCISCO
January 1, 1928

Class
A

B

C

DIRECTORS

Group

C. K. MCINTOSH, San Francisco, California
President, Bank of California, N . A.
THOMAS H . RAMSAY, R e d Bluff, California
.
.
.
President, Pacific National Agricultural Credit Corporation, San Francisco, California.
*HOWARD W H I P P L E , Turlock, California
_ _ _ _ _
President, First National Bank.
A. B . C. DOHRMANN, San Francisco, California President, Dohrmann Commercial Company.
WILLIAM T . SESNON, San Francisco and Soquel, California Agriculturist.
E . H . C o x , San Francisco and Madera, California
Vice-President a n d General Manager, Madera Sugar Pine
Company, Madera, California.
ISAAC B . N E W T O N , LOS Angeles, California
Chairman of t h e Board.
WALTON N . MOORE, San Francisco, California Deputy Chairman,
Chairman of the Board, Walton N . Moore Dry Goods Co., Inc.
W M . SPROTJLE, San Francisco, California
President, Southern Pacific Company.

Term
Expires
Dec. 31
1928
1929

1930
1929
1930
1928

1929
1930

1928

MEMBER FEDERAL ADVISORY COUNCIL
F. L. LIPMAN, representing District No. 12

President, Wells Fargo Bank and Union Trust Co.
San Francisco, California

OFFICERS
ISAAC B. NEWTON,

Chairman of the Board and
Federal Reserve Agent
S. G. SARGENT,

Assistant Federal Reserve Agent
and Chief Examiner
ALLAN SPROXJL,

Assistant Federal Reserve Agent
and Secretary

F. H. HOLMAN, General Auditor
R. T. HARDY, Auditor

JNO. U. CALKINS,

Governor
WM. A. DAY,

Deputy Governor
IRA CLERK,

Deputy Governor
W. N. AMBROSE, Cashier
CHESTER D. PHILLIPS, Assistant Cashier
C. E. EARHART, Assistant Cashier
H. N. MANGELS, Assistant Cashier
E. C. MAILLIARD, Assistant Cashier
F. C. BOLD, Assistant Cashier
J. M. OSMER, Assistant Cashier

*On February 16, 1928, Mr. Whipple resigned from the Board of Directors. A successor for his unexpired term will be elected by the member banks of Group Three.



DIRECTORS AND OFFICERS OF BRANCHES
January 1, 1928

SPOKANE BRANCH
Term
Expires
Dec. 31

Directors
.
.
.
.
.

G. I . T O E V S , * Chairman
PETER MCGREGOR* .
R. L. R U T T E R I
.
G. E . McBROOMf
. .
D. L. DAVist .
.
.
.

1929
1928
1928
1929
1928

Officers
D. L. DAVIS, Managing Director
J. M. LEISNER, Assistant Manager
EVAN BERG, Assistant Cashier

SEATTLE BRANCH
CHAS. H.CLARKE,*Chairman
H E N R Y A. RHODES* .
. .
M. F . BACKUsf .
.
.
.
M. A. ARNOLDf .
.
.
.
C. R. SHAwf

1929
1928
1928
1929
1928

C. R. SHAW, Managing Director
B. A. RUSSELL, Assistant M a n a g e r
G. W. R E L P , Assistant Cashier

PORTLAND BRANCH
NATHAN STRAUSS,* Chairman
EDWARD C. PEASE* .
. .
JOHN F . DALYJ
.
.
.
.
J. C. AINSWORTHI
.
. .

R. B. WESTf

1929
1928
1928
1929

R. B. WEST, Managing Director
S. A. MACEACHRON, Assistant Manager
J. P. BLANCHARD, Assistant Cashier

1928

SALT LAKE CITY BRANCH
LAFAYETTE HANCHETT,*

Chairman
. .
F. J. HAGENBARTH* .
L. H. FARNSWORTHf

W. L. PARTNER, Managing Director

.
.
.

. 1929
. 1928
. 1928

CHAS. H. BARTONI

.

.

.

W. L. PARTNERf .

.

.

J J . M. CRAFT, Assistant Manager
\y. M. Smoot, Assistant Cashier
L . W. DALBY, Assistant Cashier

. 1928

1929

LOS ANGELES BRANCH
W . L . V A L E N T I N E , * Chairman
J. B. ALEXANDER*
.
. .
HENRY M. RoBiNSONf . .

J. F . SARTORif

.

.

.

W. M. HALE

1929
1928
1928

. 1929

L. C. MEYER, Assistant Cashier

1928

* Appointed by Federal Reserve Board.



W. M. HALE, Managing Director
M. MCRITCHIE, Assistant Manager
A. J. DUMM, Assistant Cashier

fAppointed by Federal Reserve Bank.

LETTER OF TRANSMITTAL
Federal Reserve Bank,
San Francisco, California,
February 15, 1928.
SIRS:

I have the honor to submit the following report concerning conditions in the Twelfth Federal Reserve District and the operations
of the Federal Reserve Bank of San Francisco, for the year ended
December 31, 1927.
Yours respectfully,

Chairman of the Board
and Federal Reserve Agent.
Federal Reserve Board,
Washington, D. C.




ECONOMIC REVIEW OF THE YEAR 1927 IN THE
TWELFTH FEDERAL RESERVE DISTRICT
Business in the Twelfth Federal Reserve District proceeded at a
slightly slower pace during 1927 than in either 1926 or 1925. Industrial production early showed signs of receding from the high levels
of the two preceding years, and some curtailment of operations was
evident from the second quarter of 1927 onward. No corresponding
recession occurred in distribution and trade, but it is doubtful
whether the increase in trade for 1927 was as large as has generally
occurred in recent years. Agricultural production during 1927 is
estimated to have been above the average of recent years, and improvement in the economic position of the industry is believed to
have accompanied favorable changes in price levels of agricultural
and non-agricultural commodities during the year. The available
supply of credit has at all times been ample for the district's needs.
Agriculture
As a result of favorable physical conditions, agricultural production during 1927 was larger in the aggregate than in 1926 and above
the average of recent years. The unit value of farm products during
major crop moving periods also was generally higher in 1927 than
in 1926, and this combination of abundant yields and higher prices
indicates that gross farm income growing out of the year's agricultural operations was larger than in the previous season.
Of the year's developments in agriculture, perhaps none was more
important in its economic aspects, than the readjustment which took
place in the relative price levels of agricultural and non-agricultural
commodities. The extent of the readjustment is indicated by the
RATIO

INDEX NUMBERS

150

130

IIO

1923

1924

1925

1926

1927

PRICE TRENDS
Prices, Non- Agricultural Commodities—Index of United States Bureau of Labor Statistics
(1910-1914 prices = 100). Farm Prices—Index of prices of 30 farm products prepared by
United States Department of Agriculture (1909-1914 prices = 100). Ratio—Ratio between the
Digitized forabove two index numbers, indicating general trends in purchasing power of (arm products.
FRASER



THIRTEENTH ANNUAL REPORT

movement of an index of the farmer's purchasing power, computed
by dividing the United States Department of Agriculture's index
number of farm products prices at the farm (August, 1909-July,
1914 prices=100) by the Bureau of Labor Statistics' index of wholesale prices of non-agricultural commodities (1910-1914 prices=100).
Using average figures for the last six months of each year (months
during which farmers sell the bulk of their products) this purchasing power index stood at 90.5 for 1927, 82.1 for 1926, 88.5 for 1925,
85.4 for 1924. Although not all of the important crops of this district are represented in the index, and although some crops are included which are not of great importance here, its major movements
may reasonably be assumed to reflect district as well as national
conditions.
Index numbers prepared by this bank to show the trend of production and value of the principal crops of the district, together with the
United States Department of Agriculture's index of purchasing
power of farm products, are presented in the following table:
Agricultural Production
Twelfth Federal Reserve District
(1919-1923 Averaee=100)
1927
Volume Value

1926
Volume Value

Grains (wheat, barley, oats)
101.8 110.6
Field crops (beans, cotton, potatoes, rice, sugar beets)
127.7
92.0
Fruits (apples, peaches, pears,
prunes, raisins, grapes, oranges) 127.9* 113.2*
Purchasing power of farm productst (United States)
S7

1925
Volume Value

92.7

82.S

94.5

116.7

94.1

110.3 114.0

320.9

106.4

.109.4 108.7

85

95.9

89

•Subject to revision.
tfiatio of farm prices (August, 1909-July, 1914 prices=100) to wholesale
prices of non-agricultural commodities (1910-1914 prices—100).
INDEX

NUMBERS

INDEX NUMBERS

140

140

00

^

V

60

1923

1924 1925
VOLUME

7

IOO

1
60

- GRAINS
• HELD CROPS
• FRUITS

20

-

20

1926 1927

GRAINS
FELD CROPS
•FRUITS

•

J J

1923

1924

1925

1926

1927

VALUE

Volume and Value of Production of Fifteen Principal Crops in the Twelfth Federal Reserve District.

The available statistical record of agricultural marketing activity
during 1927 and the two preceding 3Tears reflects the increases and
decreases in agricultural production which occurred during that
Digitized forperiod.
FRASER


FEDEKAL RESERVE BANK OF SAN FRANCISCO

7

The major item in the record volume (90,110 carloads) of fresh
deciduous fruits shipped from California, as shown in the table below,
was 80,709 carloads of grapes. This unusually large movement was
well distributed throughout a short marketing season and net financial returns to table and juice grape growers averaged slightly higher
than in 1926 or other recent years.
Agricultural Marketing Activity
Twelfth Federal Reserve District
Exports
1927
Wheat (bu.)
(Portland and Puget Sound)
45,168,107
Barley (bu.)
(San Francisco)
11,504,975
Carlot Shipments
Apples (Twelfth District)
42,190
Oranges (California)
57,163
Lemons (California)
13,437
Deciduous Fruits* (California)
90,110
Livestock Receipts at Eight Markets in
Twelfth Federal Reserve District
Cattle and Calves
1,267,185
Hogs
2,146,659
Sheep
3,510,826

1926

1925

40,968,880

9,135,126

9,479,497

11,210,528

51,962
50,030
13,610
78,022

45,503
37,637
11,753
81,465

1,310,129
2,093,616
3,403,892

1,328,256
2,286,434
3,294,603

*Excluding apples.
Note: All figures are for the calendar year, except those for oranges and
lemons, which are for the 12 months period beginning November 1st of the
preceding year.

Continued improvement in the economic condition of cattle and
sheep raisers has been a noteworthy feature of the general agricultural situation in this district during 1927. Attractive market prices,
particularly for cattle, induced livestock men to finish and sell an unusually large proportion of their marketable stock, and fewer unfinished animals were sent to feedlots for fattening during the winter
months of 1927 than was the case in 1926. The reported smaller
volume of these so-called "feeder" operations may also be the result
of a continuing tendency in the livestock industry to build up breeding herds, a tendency particularly noticeable among sheep raisers.
Prices of wool at shearing time were lower in 1927 than in 1926. The
year witnessed a change in the trend of wool prices, however, the
downward movement which began early in 1925 giving way to an
upward movement in the summer of 1927.
Livestock on Farms and Ranges
Jan. 1st
1928
1927
1926
1925
1924
1923

Twelfth Federal Reserve District
Milch Cows
Other Cattle
1,405,000
3,738,000
l,397,000t
3,908,000t
1,388,000
4,158,000
1,390,000
4,551,000
1,535,000
4,652,000
1,467,000
4,712,000

Sheep
13,621,000
13,217,000t
12,545,000
12,179,000
12,130,000
11,938,000

Hogs
1,641,000
l,465,000t
1,235,000
1,386,000
1,859,000
1,778,000

tEevised.

The generally satisfactory outcome of the agricultural year was
marred only by the marketing difficulties of certain groups of producers, notably some of the deciduous fruit growers of California,
Oregon, and
 Washington. Rapid increases in yield, particularly of


s

THIRTEENTH ANNUAL REPORT

prunes, raisins, and canning peaches, during recent years have presented serious marketing problems which are not yet satisfactorily
solved.
Industry
Workers on payrolls of industrial concerns in the Twelfth Federal
Reserve District averaged fewer in number and total wage payments
were smaller during 1927 than during 1926, an indication that industry generally was not so active in the later as in the earlier year.
The principal decreases were recorded in the building, lumbering,
mining, and food packing industries.
During the first quarter of 1927 there was a seasonal expansion in
productive activity and volume of employment was greater than in
the corresponding period of 1926. During the second quarter of the
year some curtailment of operations was reported and this curtailment persisted to the year-end. Volume of employment in the latter
part of the year was below the levels of 1926. Unemployment resulting from the slower pace of industry was aggravated by an unusually
large winter influx of workers from other parts of the country.
Particular difficulty has been experienced during 1927 in securing
satisfactory statistical data concerning the lumber industry. Estimates made by this bank indicate that output of lumber in the
Twelfth Federal Reserve District was smaller during 1927 than during
1926. Efforts to keep production within the limits of apparent demand at a price level profitable to producers, met with fair success
during the early part of 1927, but during the summer and autumn
months output tended to exceed shipments and orders received. This
bank's estimates of changes in daily average production of lumber
during the months of 1924, 1925, 1926, and 1927, are presented in
index number form in the accompanying chart.
INDEX NUMBERS

130
120

A

no
100
90
80

Ivv

1924

1925

1926

1927

LUMBER PRODUCTION—TWELFTH DISTRICT
Indexes of Daily Average Production Adjusted for Seasonal Variation.
(1923-1925 Daily Average = 100)

Value of building permits issued in 20 principal cities of the district during 1927 was smaller than in any year since 1922. A part
of the decrease in value of building permits, as compared with earlier
years, may be accounted for by declines in building costs, but, even
though allowance be made for this factor, it is apparent that building was
 less active during 1927 than during the preceding four years.


FEDERAL RESERVE BANK OF SAN FRANCISCO

9

A tabular statement of value of building permits issued in principal cities of the Twelfth Federal Reserve District and of construction costs in the United States during recent years follows:
Building Activity
Twelfth Federal Reserve District
i Value of Permits Issued*
.,
Percentage
Change from
Value
Previous Year

Year

1927
1 920

$331,821,393
361 ,387,378

— 8.2
—14.3

/—-Construction Costst—>
Percentage
Change from
Index
Previous Year

189
194

— 2.6
0.5

1925
421,594,906
7.5
193
1.0
1924
392,182,245
— (i.(i
191
— 1.5
1923
419,720,721
35.1
194
11.5
1922
310,676,178
48.7
174
—0.3
"Twenty cities.
tSource: Federal Reserve Bank of Now York. Annual averages of construction costs, including materials and wages, for the United States. 1913 costs=100.

The mining industry was slightly less active during 15)27 than
during 1926. Of the principal metals (gold, silver, copper, lead, and
zinc) mined in the district, lead was the only one to show increased
production over the year period. Prices of these metals have, on
the average, been lower during 1927 than during 1926. In the fourth
quarter of 1927, the market for silver and copper improved, however, and their December prices were higher than in the same month
of 1926.
Mineral Production
Twelfth Federal Reserve District*
Gold
Silvert
Coppert
(oz.)
(oz.)
(lbs.)

Leadt
(lbs.)

Zinct
(tons)

1927

1,154,572
(53.0)

41,402
(69.7)

1,102,760
(66.1)

631,892
(49.0)

S2,646
(11.5)

.1926

1,200,484

43,039$

1,119,041$

626,528$

96,518$

(51.4)
1,284,331
(53.2)
1,305,273
(51.6)
1,374,201
(54.9)

(68.6)
46,338
(70.0)
44,914
(68.7)
48,652
(66.3)

(64.9)
1,092,434
(65.1)
1,050,238
(65.4)
942,979
(63.8)

(45.9)'
620,586
(45.3)
530,263
(44.4)
492,735
(45.0)

(12.5)
48,544
(6.8)
23,643
(3.7)
28,237
(4.6)

1925
1924
1923

"Including all of Arizona, the live southeastern counties of which are in the
Eleventh Federal Reserve District. t O omitted. +Xot including Arizona,
OO
Oregon and Washington. $Bevised.
Figures in parentheses indicate percentage of Twelfth District production to
that of United States.

Production of Portland cement in Pacific Coast states has increased
steadily during recent years. During 1927, the output was greater
than in any year of record.
Portland Cement
California, Oregon, and Washington

1927
1926
1925
1924
1923
Digitized *Includes figures for Montana.
for FRASER


California

Oregon and
Washington

Twelfth
District

(barrels in
thousands)

(barrels in
thousands)

(barrels in
thousands)

14,105
13,842
13,098
11,615
11,002

3,508
3,197
3,868*
2,983*
3,105*

17,613
17,039
16,966*
14,598*
14,107*

10

THIRTEENTH ANNUAL REPORT

During 1927, production of petroleum in California slightly exceeded production in 1924, 1925, and 1926, and was larger than in
any other year, excepting the peak year of 1923. Output of refined
oils was greater than in any other year of record. Consumption of
crude oil was well maintained, exceeding output, so that stored stocks
at the close of 1927 (113,281,630 barrels) were 5.2 per cent smaller
than at the beginning of the year. Prices for petroleum and petroleum products were generally lower during 1927 than during 1926.
Petroleum
i
Total
(barrels)

Production
Per Cent
California to
United
States

California
\
Daily
Average
(barrels)

1927
230,751,000
25.8
632,196
1926
224,117,000
29.2
614,019
1925
230,147,000
30.4
630,541
1924
230,064,000
32.1
728,590
1923
263,729,000
35.9
722,545
1922
139,671,000
24.8
382,660
1921
114,709,000
23.8
314,271
1920
105,668,000
23.3
288,710
1919
101,564,000
26.7
278,258
1918
97,532,000
27.4
267,211
tComparable figures not available.
Source: American Petroleum Institute.

Stored Stocks at
End of Year
(barrels)

113,281,630
119,542,556
127,194,894
97,829,374
89,274,244
t
t
t
t
t

Average
Producing
Active
Oil Wells Producing
Completed
Wells

901
913
948
1,238
980
837
704
572
559
586

11,278
11,288
11,393
10,903
8,928
9,410
9,425
9,299
t
t

More flour was produced in this district during 1927 than in any
other year since 1923. Output, as reported by 14 large milling companies producing more than half of the district's total grindings,
was 41 per cent larger than in 1926. The increase was a reflection
not only of the larger supplies of wheat available in the Pacific Northwest, but also of an improved market demand, for millers' stocks
of flour were but 12 per cent larger in volume at the close of the year
than at its beginning. The actual amount of this increase in stocks
was less than one per cent of total annual production, indicating that
consumption or disappearance of flour approximated production during the year. Both flour and wheat prices averaged lower during
1927 than in 1926, and the extent of their declines was about equal
to the drop of 5 per cent in the general wholesale price level.
Flour Milling
Twelfth Federal Reserve District
t

Flour Production*
i
Total
Monthly Average
(barrels)
(barrels)

1927
6,010,249t
1926
4,961,319
1925
4,674,316
1924
5,907,329
1923
6,779,155
1922
5,944,977
1921
5,652,981
*14 mills reporting.
t Figures for one mill partially estimated.

500,481
413,443
389,526
492,277
564,930
495,415
471,082

—Stocks at Close of Year 1
Wheat
Flour
(bushels)
(barrels)

442,236
396,431
412,192
548,550
569,430
521,501
472,693

3,939,150
2,955,219
4,022,593
2,927,762
3,901,986
4,337,362
2,129,600

The pack of canned foods in the Twelfth District, including canned
fruits, vegetables, and fish, although smaller during 1927 than durDigitized foring 1926, was above the average of recent years. Canned fruit packFRASER


11

FEDERAL RESERVE BANK OF SAN FRANCISCO

ers entered the year 1927 with heavy stocks of the record 1926 pack
still on hand. By means of energetic sales campaigns and substantial
price reductions these stocks were disposed of, but the difficulty experienced in marketing them bred curtailment of production in 1927.
The Pacific Coast canned salmon pack is estimated to have been
smaller in 1927 than in any year since 1921, the size of the pack
being largely a reflection of the restricted catch of fish in coast waters
during the past year.
Canned Fruits and Vegetables
Combined Pack California, Oregon, Washington, and Idaho
Fruits
Vegetables
(cases)
(cases)
21,657,577
9,569,828
27,477,963
10,429,510
20,323,719
9,620,842
14,631,939
7,795,642
15,260,727
8,430,680
18,900,917
7,509,829
11,211,292
2,815,556

1927
1926
1925
1924
1923
1922
1921

Totals
(cases)
31,227,405
37,907,479
29,944,561
22,427,581
23,691,407
26,410,746
14,026,848

Distribution and Trade
The total volume of trade transacted in the district during 1927
probably exceeded that of 1926. Railway carloadings of merchandise and miscellaneous freight, an indication of the volume of goods
moving through distributive channels, were larger than in 1926 as
was the dollar value of sales at retail. Value of sales at wholesale and
value of imports and exports, on the contrary, were smaller than in
the previous year. Relative decreases in these dollar value figures
were not so great, however, as were declines in prices of the principal commodities passing through wholesale and foreign trade channels, and it is estimated that the physical volume of such distribution was larger during 1927 than during 1926.
INDEX

NUMBERS

90
80

W

JlaSf

1925

1926

1927

DISTRIBUTION AND TRADE—TWELFTH DISTRICT
Indexes adjusted for seasonal variation. 1923-1925 average = 100. Daily average figures of department store sales and railway carloadings of merchandise and miscellaneous freight.
Monthly figures of sales at wholesale.

Trade was active at relatively high levels during the first six
months of 1927. During the third quarter of the year, there was
some contraction in carloadings and in sales at wholesale, a reflection,
no doubt, of curtailment of industrial operations. During both the
second and third quarters of the year jobbers reported greater difficulty in making collections on outstanding accounts than during the



12

THIRTEENTH ANNUAL REPORT

same period of 1926. Toward the year's close, as reports of satisfactory harvesting returns were verified, wholesale trade activity
increased and collection conditions improved. The decline in carloadings extended into the last quarter of the year, however, and
during November and December, 1927, district loadings were smaller
than in the corresponding months of 1926. The general trend of
sales at retail was upward throughout the year. The rate of stock
turnover of reporting retail stores amounted to 2.99 for 1927, a
figure approximately the same as that computed for 1926 (2.96).
Distribution and Trade
Twelfth Federal Reserve District
Index Numbers
(1923-1425 annual averajfe = 100)
1927

1926

1925

1924

Carloadings, Total
112
113
108
97
Carloadings, Merchandise and Miscellaneous
II1 r>
1 1 2 108
98
Imports*
114
118
104
100
Exports
124
127
102
108
Sales at Wholesale
97
100
101
98
Sales at Eetail
115
112
105
99
Stocks, Retail
108
101
102
103
Stock Turnover, Retailt
, . 2.99
2.9(5
2.71
2.55
"Excluding silk, tActual turnover (times per year) at 27 department stores.

Instalment sales were larger in amount during 1927 than during
1926. Instalment accounts outstanding at reporting stores increased
more than 10 per cent during the later year, whereas total sales of
these stores increased only three per cent. Collections on instalment
accounts were generally slower than in 1926, particularly during the
last half of the year. Collections on regular charge accounts at retail
were maintained during 1927, at or above the level of 1926.
Sales of new automobiles in the district were considerably smaller
in number during 1927 than during 1926. The decrease, which was
particularly marked during the last half of 1927, was probably due
in large part to the discontinuance of production and partial discontinuance of distribution of Ford cars during the last eight months
of the year. The decline in sales of new automobiles also may have
reflected some reduction in consumer purchasing power and a tendency toward redistribution of expenditures from total annual
income.
Banking and Credit
Changes in banking and credit conditions in the district during
the year 1927 reflected, with considerable accuracy, seasonal and
other changes in the general business situation. During the first half
of the year, fluctuations in demand for credit accommodation at member banks and at the Federal Keserve Bank were largely seasonal in
character. During the second half of the year the changing credit
situation reflected a moderate recession in industry and in some lines
of trade, as well as the usual seasonal influences. It was during this
period of declining business activity that the rediscount rate of the
Federal Keserve Bank of San Francisco was reduced from 4 to 3y*
per cent, the lower rate becoming effective on September 10, 1927.
The 4 per cent rate had been in effect since November 23, 1925.
Following a seasonal decline at the beginning of the year, total
Digitized forloans of reporting member banks of the district increased somewhat,
FRASER


13

FEDERAL RESERVE BANK OF SAN FRANCISCO

apparently reflecting the increased demand for credit to meet the
requirements of more active trade and industry in the spring. Investments also increased during the period, and the growth in total
loans and investments was accompanied by a temporary increase in
the volume of member bank borrowing at the Federal Reserve Bank.
The second quarter of the year 1927 witnessed a seasonal decline
in the demand for credit which continued during the summer months,
reflecting curtailment of industrial and trade activity and delay in
harvesting the district's crops. Loans of member banks in leading
cities declined throughout most of the period and, except for a temporary increase during June, investments also declined while deposits remained at a relatively high level. Thus with available funds
abundant in relation to the demand for credit, member banks were
enabled to reduce the volume of their borrowing at the Federal Reserve Bank, and in September daily average holdings of discounted
bills at the Federal Reserve Bank of San Francisco, at $35,597,000,
were smaller than at any time since February, 1926.
MILLIONS OF DOLLARS
1500;
*«*• '

•—»—»-g———

LOANS AND DISCOUNTS
IOOO
DEMAND

TIME DEPOSITS

DEPOSITS

• «"
*

INVESTMENTS

500

-

BOR ROWINGS FROM FEDERAL
1924

1925

1926

RESEFtVE BANK
1927

REPORTING MEMBER BANKS—TWELFTH DISTRICT
Demand Deposits, Time Deposits, Loans and Discounts, Investments, and Borrowings from
Federal Reserve Bank
(as of the last Wednesday of each month)

During the early autumn and in closing months of the year member banks in leading cities added considerable amounts to their investment holdings; in late September and in October while the bulk
of the district's crops was being marketed there was also a temporary growth in the loans of these banks which reached a seasonal
peak of $1,291,000,000 on October 11th. For the first time since 1921,
and contrary to the experience of most previous years, the high point
of the autumn borrowing at member banks in leading cities was
below that of the previous spring ($1,317,000,000 on March 9, 1927).
Increase in loans and investments was accompanied by continued
growth in the volume of deposits at member banks. The seasonal
increase in the demand for credit incident to the movement of the
district's crops resulted in a temporary increase in the demand for
member bank accommodation at the Reserve Bank. Discounts at the
Federal Reserve Bank of San Francisco increased from $30,000,000
to more than $59,000,000 (the high point of the year) during the
crop moving
 period. The latter figure, reached on October 11, 1927,


-l-i

THIRTEENTH ANNUAL REPORT

was $9,000,000 (13.6 per cent) smaller and came two weeks later
than the 1926 autumn peak ($68,694,000 on September 29, 1926).
With the passing of the peak of the agricultural marketing season
in late October and early November, reporting member bank loans
again declined and discounts at the Federal Reserve Bank of San
Francisco were again reduced. Toward the close of the year, the
incidence of demand for credit tended to shift from industry and
agriculture to trade, and loans at reporting member banks increased
to a seasonal holiday peak of $1,306,000,000 on December 21, 1927.
Heavier borrowing at the Reserve Bank during this period reflected chiefly the usual Christmas holiday demand for currency, and
also the increase in the reserve requirements of member banks. From
mid-December to the end of the year seasonal liquidation reduced the
volume of loans at member banks and of member bank discounts at
the Reserve Bank.
MILLIONS OF DOLLARS

FEDERAL

RESERVE

NOTE CIRCULATION

U.S. SECURITIES AND BILLS BOUGHT

1924
1925
1926
1927
FEDERAL RESERVE BANK OF SAN FRANCISCO
Total Reserves, Federal Reserve Note Circulation, Investments (U. S. Securities and Bills
Bought), and Bills Discounted
(as of the last Wednesday of each month)

At no time during the year was there any lack of credit for agriculture, commerce and industry, and the amount of Federal reserve
funds in use was at all times relatively small.




FEDERAL RESERVE BANK OF SAN FRANCISCO

15

OPERATIONS OF THE FEDERAL RESERVE BANK OF
SAN FRANCISCO DURING 1927
In the field of internal organization and operation, the thirteenth
year of the Federal Reserve Bank of San Francisco differed little
from those which immediately preceded it. A substantial gain in
total volume of operations was recorded, but only moderate use was
made of the bank's facilities having to do with grant of credit.
Earnings of the bank, while smaller than in 1926, were sufficient to
pay all expenses and the legally prescribed dividend, and to provide for an increase in surplus approximating half a million dollars.
Some measure of the principal operations of the bank during the
past three years is*afforded by the figures in the table on page 26.
Although similar figures are not available for all of the thirteen
years since the organization T the Federal Reserve Bank of San
of
Francisco, an idea of the grow th in size and importance of its operations may be gained from the following comparisons of items taken
from condition statements of the bank on corresponding dates in
1915 and 1927:
_
Resources

November 30,
1927

November 30
1915

Gold Eeserves
Bills Discounted
Bills Bought
Securities
All Other Eesources

$264,157,000
41,254,000
7,622,000
45,797,000
58,622,000

$17,730,000
687,000
521,000
2,136,000
4,607,000

Total Eesources

$417,452,000

$25,681,000

November30,
1927

November 30,
1915

$169,180,000
175,432,000
9,302,000
16,121,000
47,417,000

$ 4,370,000
17,327,000
3,941,000.

$417,452,000

$25,681,000

w.

......
Liabilities

Federal Eeserve Notes in Circulation
Member Bank Deposits
Capital Paid in
Surplus
All Other Liabilities
Total Liabilities

43,000

Statement of Condition
A comparative statement of condition of the Federal Reserve Bank
of San Francisco as of December 31, 1927, and December 31, 1926, is
presented below, with such explanatory remarks as will aid in its
interpretation. Changes over the year period have been relatively
unimportant and it is not necessary to call attention here to the
movement of particular items. It should be pointed out, however,
that the figures shown for reserves and for bills discounted at the
year-end, and particularly as of December 31, 1927, are misleading
to the extent that they represent a purely temporary movement of
these items. Some member banks, for traditional reasons, prefer not
to appear as debtors of the Federal Reserve Bank in their annual
published statements of condition, and these banks liquidate their
borrowings for a few days at the year-end. Some reference should
also be made to the decline shown in holdings of acceptances bought
in the open market over the year period. During the later months
of 1927 a considerable volume of acceptances was purchased in the



16

THIRTEENTH ANNUAL REPORT

San Francisco market for the account of other Federal reserve banks,
so that the decline in the San Francisco Reserve Bank's holdings
does not represent a corresponding decline in Pacific Coast acceptance offerings.
Statement of Condition—Federal Reserve Bank of San Francisco
RESOURCES
Cash Reserves held by this bank against its
deposits and note circulation:
Gold and Gold Certificates in vault
Gold in the Gold Settlement Fund lodged with
the Treasurer of the United States for the
purpose of settling current transactions
between Federal Reserve Districts

Dec. 31,1927

Dec. 31,1926

$ 29,363,981.92 $ 39,942,315.21

55,318,623.69

29,760,448.59

Gold Held by the Federal Reserve Agent as
part of the collateral deposited by the
bank when it obtains Federal Reserve
notes. This gold is lodged in his name
partly in the vaults of the bank and partly
with the Treasurer of the United States. .'. 1226,184,1)95.00

185,587,365.00

Gold Redemption Fund in the hands of the
Treasurer of the United States to be used
to redeem such Federal Reserve notes as
are presented to the Treasurer for redemption

1,S74,596.23

2,959,626.62

Legal Tender Notes, Silver, and Silver Certificates in vaults of the bank (available
as reserve against deposits only)

6,942,838.00

6,620,311.00

Total Cash Reserves

$319,685,034.84 $264,870,066.42

Loans and Investments
Loans to Member Banks:
Secured by obligations of the United States $ 985,200.00
By the discount of commercial or agricultural paper or acceptances
4,234,629.79

$ 7,632,100.00
26,567,262.97

Acceptances bought in the open market

13,842,131.91

31,374,221.26

United States Government bonds, notes, etc.

46,075,350.00

40,667,200.00

$ 65,137,311.70

$106,240,784.23

Total Loans and Investments

(or Earning

Assets)

Uncollected Items
Checks and Other Items Not Yet Collected. . . $ 41,483,934.81 $ 45,766,738.37
Miscellaneous Resources
Bank Premises
Non-Reserve Cash, consisting largely of National Bank notes and minor coin
All Other Miscellaneous Resources
Total Miscellaneous Resources
TOTAL RESOURCES


$ 3,373,761.51

$ 3,397,325.49

4,456,751.99

3,760,840.65

834,339.51

1,191,642.67

$ 8,664,853.01 $ 8,349,808.81
$434,971,134.36

$425,227,397.83

FEDERAL RESERVE BANK OF SAN FRANCISCO
LIABILITIES
Currency in Circulation
Dec. 31,1927
Federal Reserve Notes in actual circulation,
payable on demand. These notes are
secured in full by gold and discounted and
purchased paper
$176,399,835.00
Deposits
Reserve Deposits maintained by member
banks as legal reserves against the deposits of their customers
$189,268,430.42
United States Government Deposits
1,704,276.87
Other Deposits, including foreign deposits,
deposits of non-member clearing banks, etc.
5,000,925.27
Total Deposits

1 /

Dec. 31,1926

$187,109,150.00

$163,332,389.62
532,150.54
7,797,104.69

$195,973,632.56

$171,661,644.85

Deferred Availability Items
Deferred Items, composed mostly of uncollected checks on banks in all parts of the
country
$ 36,598,114.02

$ 41,511,112.79

Miscellaneous Liabilities
Reserves and All Other Miscellaneous
Liabilities

68,116.51

$

168,615.77

Capital and Surplus
Capital Paid In, equal to 3 per cent of the
capital and surplus of member banks
$ 9,302,150.00
Surplus as permitted by law
16,629,286.27

$

8,655,950.00
16,120,924.42

$

Total Capital and Surplus

$ 25,931,436.27
$434,971,134.36

TOTAL LIABILITIES

$ 24,776,874.42
$425,227,397.83

Earnings and Expenses
Average holdings of all classes of earning assets at the Federal
Reserve Bank of JSan Francisco were smaller during 1927 than during 1926 and rates of discount averaged lower in the later than in
U S TREASURY
SURPLUS
DIVIDENDS
CHARGE-OFFS
EXPENSES
ERRED
FROM SURPLUS

1922

1923

1924

1925

4.5
3.8

1926

1927

EARNINGS A N D EXPENSES
Amount and Distribution of Earnings of the Federal Reserve Bank of San Francisco
(in millions of dollars)
Charge-offs represent chiefly depreciation allowances on bank premises, reserve for probable losses, and cost of furniDigitized ture and equipment purchased.
for FRASER



is

THIRTEENTH ANNUAL REPORT

the earlier year. As a result, gross earnings of the bank at $3,853,442
for the year 1927 were $701,000 or 15.4 per cent below the figure for
1926. Current expenses were approximately the same in 1927 as in
1926 despite a general increase in total volume of business transacted. Deductions from gross earnings, other than for current expenses declined during 1927 as compared with 1926, a large decrease
in the amount set aside as reserve for probable losses more than offsetting moderate increases in reserves for depreciation of bank
premises and in the furniture and equipment account. These latter
increases were the result of the occupancy of the new Salt Lake City
branch building early in 1927, while the decline in the amount
allotted to reserve for probable losses reflects the clearing up of a
difficult banking situation which had Its inception in 1919, 1920,
and 1921.
The principal sources of earnings of the Federal Reserve Bank of
San Francisco during 1927 and 1926, with an enumeration of the
major classifications of operating expenses and a statement of distribution of net income, are presented in the following table:
INCOME AND DISBURSEMENTS
Earnings

1927

1926

On Loans to Banks and Paper Discounted for
Them

$1,676,695.99

$1,867,134.26

630,905.95

896,498.22

1,395,670.89

1,586,101.39

150,168.90

205,126.16

$3,853,441.73

$4,554,860.03

$2,249,151.70

$2,232,925.71

For Assessments for Federal Reserve Board
Expenses

54,788.66

49,630.19

For Federal Reserve Currency, mainly the cost
of printing new notes to replace worn notes
in circulation, and to replenish the stock unissued and on hand

157,006.58

136,829.77

For Furniture and Equipment

144,047.76

99,429.80

For Reserves for Depreciation

140,953.68

125,753.78

52,069.94

354,291.53

$2,798,018.32

$2,998,860.78

NET INCOME available for dividends, additions to surplus, and payment to the
United States Government
$1,055,423.41

$1,555,999.25

On Acceptances Purchased
On United

States

Government

Obligations

Owned
Other Earnings
Total Earnings
Deductions from Earnings
For Current Bank Operation

For Reserves for Probable Losses on advances
to member banks
Total Deductions from Earnings




19

FEDERAL RESERVE BANK OP SAN FRANCISCO

INCOME AND DISBUBSEMENTS—Continued
1927

1926

Distribution of Net Income
In Dividends Paid to Member Banks, at the
rate of 6 per cent on paid-in capital
$ 547,061.56
In Additions to Surplus—The bank is permitted
by law to accumulate out of net earnings,
after payment of dividends, a surplus amounting to 100 per cent of the subscribed capital;
and after such surplus has been accumulated
to pay into surplus each year 10 per cent of
the net income remaining after paying dividends
508,361.85

$ 506,067.94

1,049,931.31

In Payment to the United States Government,
as a franchise tax representing the entire net
income of the bank after paying dividends
and making additions to surplus (as above).
No balance remained for such payments in
1926 and 1927
TOTAL NET INCOME DISTRIBUTED

—0—

—0—

$1,055,423.41

$1,555,999.25

Federal Reserve Note Issues
A marked change in the proportions of the two kinds of collateral
held as security against outstanding Federal reserve notes (partly
held by the Federal Reserve Bank and partly in actual circulation)
is the most striking feature of the comparative statement of note
accounts of the Federal Reserve Agent at San Francisco as of December 31, 1927 and 1926. The amount of gold pledged as collateral
for the issuance of Federal reserve notes increased from $185,587,365
to $226,184,995 over the year period while the amount of eligible
paper* pledged for the same purpose declined from $65,445,264 to
$17,612,559. This movement is the result of the same temporary in^
fluence (see page 15) which caused reserves of the Federal Reserve
Bank to increase and its holdings of discounted bills to decline at
the close of 1927. The figures serve, nevertheless, to call attention to
the relatively large gold cover behind Federal reserve notes during
recent years. The following table shows the principal items of the
Federal Reserve Agent's note accounts as of December 31, 1927 and
1926,
Federal Reserve Agent's Note Account
1927

Federal reserve notes received from Comptroller of
the Currency—Net figure as of December 31
$296,828,995
Federal reserve notes on hand—December 31
62,100,000
Federal reserve notes issued and outstanding—
December 31
$234,728,995
Collateral pledged by Federal Eeserve Bank against
outstanding Federal reserve notes—December 31:
Gold and gold certificates
$226,184,995
Eligible paper
17,612,559
Total collateral

$243,797,554

1926

$284,891,365
53,300,000
$231,591,365
$185,587,365
65,445,264
$251,032,629

*Notes, drafts, bills of exchange, or acceptances acquired by discount under
the provisions of Section 13 of the Federal Reserve Act, or bills of exchange,
endorsed by a member bank, or banker's acceptances purchased under the provisions of Seetion 14 of that Act.



20

THIRTEENTH ANNUAL REPORT

Member Bank and Public Relations
The official staff of the Federal Reserve Bank of San Francisco has
continued to conduct such member bank and public relations work
as is deemed necessary and desirable. In 1927, as in previous years,
many of the member banks and not a few non-member banks of the
district were visited by one or more of the bank's officers. Frequent response was made to requests for speakers on the Federal
Reserve System, and miscellaneous other activities which furthered
the public relations of the bank were encouraged.
Movement of membership was dominated during 1927, as in other
recent years, by the spread of branch banking in California. ConChanges in Bank Membership During the Year 1927
(By Class of Bank)
i
Member Banks\
,
Number -i
•
,
Resources
National
State
Total
(in thousands)

Active member banks—December 31,1926

568

153

721

$3,664,331)

10

...

10

4,580

3
1
2*

...
3
...
...

3
3
1
2*

1,80(5
12,57!)
70S
(401,977)t

1*

...

Is

(

Additions to Membership:
Organizations of National banks
Conversion of non-member banks to
National banks
Admission of State banks
Resumption following suspension . . . .
Conversion within the System
Succession between member banks of
same class
TOTAL ADDITIONS

17

3

l,935)t

20

$19,593

6
0
...

41
S
1
15

($219,002)t
( 242,510) t
86
7,678

1

13

Losses to Membership:
Merger between member banks:
Fntraclass
Tnterclass
Voluntary liquidations
Suspension or insolvency
Absorption of member by non-member
banks
Conversion of member to non-member
banks
Withdrawal of State banks
Conversion within the System
Succession between member banks of
same class
TOTAL LOSSES

35$
2
1
8
12

1
1
2*
1*
59

Net Change
—42
Active member banks—December 31,1927 526

...
24

—21
132

12,768

1
1
2*

12,012
1,906
(461,977) t

1*

(

83

—63
658

1,935) t

$34,450

—$14,857
$3,937,93911

"Changes not affecting total number of banks.
tChanges not affecting total resources of member banks.
^Includes 26 banks which were absorbed by non-member banks and subsequently absorbed by a member State bank which converted into a National bank.
IJShows a gain of $273,600,000 during 1927. Gain of $288,457,000 due to increases in resources of member banks in system throughout year, partially offset
by loss of $14,857,000 shown in table due to changes in bank membership.



21

FEDERAL RESERVE BANK OF SAN FRANCISCO

tinned absorption of so called unit member banks by large branch
banking systems in that state resulted in a decline in the total number of member banks in the district from 721 on December 31, 1926,
to 658 on December 31, 1927. This movement has been in progress,
in approximately its present dimensions, since the close of 1921
when 837 national and State banks held stock in the Federal Reserve Bank of San Francisco.
Loss in numerical strength under these circumstances has no
significance insofar as the resources of member banks, or the proportion of those resources to the total banking resources of the district,
are concerned. During 1927 total resources of all member banks
increased from $3,664,339,000 to $3,937,939,000, a gain of $273,600,000, or 7.5 per cent.
Legislative changes in the laws relating to the establishment and
maintenance of branches of national and state member banks f ocussed
attention on the branch banking situation in California during the
early part of 1927. Amendment of that section of the Federal Reserve Act relating to branches of State member banks and of those
sections of the revised statutes of the United States relating to
branches of national banks was effected February 25, 1927, and
matters which had previously been subject to administrative interpretation and regulation by the Federal Reserve Board and the
Branch Banks in California
Number
of
Banki

Date

Number
of
anches

10
58

355
230

$1,551,747,457
755,959,950

74

585

$2,307,707,407

16

85

449,361,819

90

670

$2,757,069,226

8
47

174

186

$ 859,438,000
666,191,000

55

360

$1,525,629,000

13

448

1,432,916,000

68

808

$2,958,545,000

Total
Resources

Dec. 31, 1020:
State Banks—Member
Non-Member
Total number of State banks having
branches
*Total number of National banks having
branches
Total
Dee, 31, 1927:
State Banks—tMember
Non-Member
Total number of State banks having
branches
*Total number of National banks having
branches
Total

* Includes Bank of California, N. A., San Francisco, California, with branches
at Portland, Oregon, and Seattle and Tacoma, Washington.
t Includes one foreign branch of the American Trust Company, San Francisco,
California.



22

THIRTEENTH ANNUAL REPORT

Comptroller of the Currency became subject to law. The amended
paragraph of the Federal Reserve Act (paragraph two, Section nine)
now reads as follows:
"Any such State bank which, at the date of the approval of this
Act, has established and is operating a branch or branches in conformity with the State law, may retain and operate the same while
remaining or upon becoming a stockholder of such Federal reserve
bank; but no such State bank may retain or acquire stock in a Federal reserve bank except upon relinquishment of any branch or
branches established after the date of the approval of this Act beyond the limits of the city, town, or village in which the parent bank
is situated."
Immediately prior to the effective date of this amendment to the
Act there was, for obvious reasons, a rapid increase in the establishment of additional branches of both member and non-member State
banks. The branches then established by member State banks were
qualified for retention within the Federal Reserve System. Similarly, many of the non-member State bank branches then established
could later be brought into the System either directly, the parent
bank obtaining membership, or indirectly by consolidation of the
parent bank with a national bank, under the permissive features of
the amended statutes governing branches of national banks.
The last ten months of 1927 brought a further but less rapid development of branch banking in California, principally on the part
of non-member State bank interests. On December 31, 1927, total
resources of branch bank systems in California were approximately
74 per cent of total resources of all banks in the State.
In order to establish a more intimate knowledge of the condition
of member banks, the Federal Reserve Bank of San Francisco
planned and carried out a heavier program of bank examination
work in 1927 than in immediately preceding years. To care for the
increased volume of work and to facilitate credit investigations of
the large branch banking systems, three examiners were added to
the bank's staff early in the year. Twenty-two independent credit
investigations were made of national and State member banks as
compared with three in 1926, and 97 credit investigations were
carried on simultaneously with examinations made by national and
State bank examiners, as compared with 87 in 1926. A tabular summary of examinations and credit investigations made by the Federal
Reserve Bank of San Francisco during the year 1927 follows:
Member Bank Examinations
Independent examinations (for admission)
4
Examinations made concurrently with National and State Banking Departments
0
Independent credit investigations:
State banks
16
National banks
6
Concurrent credit investigations:
With State examiners
95
With National examiners
2
TOTAL
 NUMBER OF EXAMINATIONS AND INVESTIGATIONS MADE


123

FEDERAL RESERVE BANK OF SAN FRANCISCO

23

The two largest branch banking systems in California were converted from State to national banks during 1927 with a consequent
shift in the examination burden from the State Banking Department
to the office of the National Bank Examiner for the district. Examiners and other employees of the Federal Reserve Bank of San Francisco were loaned to the national authorities to assist in the examination of these banks, with their 317 branches and, continuing previous
practice, assistance was given the State Banking Department in
examining a large State member bank with 94 branches.
The following quotation concerning the research and statistical
work of the bank, taken from the Annual Report for the year 1926,
will again serve to describe that phase of the bank's activities.
"The Monthly Review of Business Conditions, prepared under the
direction of the Chairman of the Board and Federal Reserve Agent
at San Francisco was published throughout the year and distributed
without charge to approximately 9,000 banks and interested individuals. The Division of Analysis and Research of the Federal Reserve Agent's office, which is currently engaged in the study of business and credit conditions, has distributed such of its findings as
are of a public nature, both through the medium of the Monthly Review and by means of special reports and correspondence. In addition it has maintained files of statistical material, relating to the
Twelfth Federal Reserve District and to the United States, which are
becoming an increasingly important source of public information."
Bank Organization and Personnel
On December 31, 1927, the terms of three directors of the Federal
Reserve Bank of San Francisco, Howard Whipple of Class A, William T. Sesnon of Class B, and Walton N. Moore of Class C, expired.
Mr. Whipple, President of the First National Bank of Turlock, California, was re-elected as Class A director by the member banks of
Group Three (those having a combined capital and surplus of less
than $125,000) for a term of three years ending December 31, 1930.*
Mr. Sesnon, agriculturist of San Francisco and Soquel, California,
was re-elected by the banks of Group Two (those having a combined
capital and surplus not exceeding $599,999 and not less than $125,000) for a similar three-year term as director of Class B. The Federal Reserve Board reappointed Mr. Moore of San Francisco, California, a Class C director for a term of three years ending December 31, 1930, and redesignated him Deputy Chairman of the Board
for the year 1928.
Isaac B. Newton of Los Angeles, a Class C director, whose term
expires December 31, 1929, was likewise redesignated Chairman of
the Board and Federal Reserve Agent for the year 1928.
To represent the Twelfth Federal Reserve District on the Federal
Advisory Council during the year 1927, the Board of Directors chose
Henry S. McKee, President of Barker Brothers, Inc., Los Angeles,
*On February 16, 1928, Mr. Whipple resigned from the Board of Directors. A
successor for his unexpired term will be elected by the member banks of Group
Three.



24

THIRTEENTH ANNUAL REPORT

California, lie having served in that capacity during the two preceding years and it being the custom to elect such representatives for
three successive terms, t
In the appointment of directors of branches of the Federal Reserve
Bank of San Francisco, it was decided during 1927 to revert to the
practice of the years prior to 1925, namely, to have only five directors at each branch instead of, as in the past three years, having
seven. To effect this reduction, no new appointments to the directorates of the five branches of the bank were made at the close of
1927, and nine directors who had served the three-year terms for
which they were appointed, retired from office. (A tenth vacancy in
the branch directorates had been in existence since January, 1927.)
Otherwise the personnel and general organization of the branch
boards of directors was unchanged.
The following changes in the official staff of the bank took place
during 1927:
Resignations:
June 30—R. B. Motherwell, Managing Director, Los Angeles
Branch, resigned to accept position as Vice President, Wells
Fargo Bank and Union Trust Company.
December 31—L. C. Pontious, Deputy Governor, Head Office, resigned to accept position as Vice President, Anglo & London
Paris National Bank, San Francisco.
December 31—A. C. Agnew, Counsel, Head Office, resigned to return to private practice. Mr. Agnew has been retained as counsel by the bank.
Appointments:
June 1—L. W. Dal by, Chief Clerk of Salt Lake City Branch, was
appointed Assistant Cashier, Salt Lake City Branch.
July 1—W. M. Hale, Assistant Cashier, Head Office, was transferred to Los Angeles Branch as Managing Director of the
branch.
July 1—J. M. Osmer, formerly Auditor, Head Office, was appointed
Assistant Cashier, Head Office.
July 1—11. T. Hardy, formerly Chief Accountant, Head Office, was
appointed Auditor, Head Office.
Effective January 1, 1928—G. W. Relf, formerly accountant at
Seattle Branch was appointed Assistant Cashier, Seattle Branch.
tOn January 5, 1928, F. L. Lipman, President of the Wells Fargo Bank and
Union Trust Company of San Francisco was elected to serve as the representative of the Twelfth Federal Reserve District on the Federal Advisory Council
during
the year 1928.


FEDERAL RESERVE BANK OF SAN FRANCISCO

25

Following is a comparative summary of the number of officers and
employees in the principal departments of the bank, with corresponding aggregate annual salaries paid on January 1, 1927, and
January 1, 1928. (Figures are for Head Office and branches combined.)
Personnel and Salaries
Officers and Employees
Number
Annual Salaries
Jan. 1, Jan. 1,
Jan. 1,
Jan. 1,
1928
1927
1928
1927
31
32
$ 241,000
$ 243,600

OFFICERS
EMPLOYEES BY DEPARTMENTS:

Banking Department
Federal Eeserve Agent's Department
Auditing Department
Fiscal Agency Department

747
25
8
21

841

TOTAL

758
29
7
16

1,177,417
77,180
15,180
29,580

1,150,885
60,180
17,340
37,260

833

$1,536,757

$1,508,765

2

2

4,200

4,080

25

23

27,923

25,735

$1,568,940

$1,538,580

FISCAL AGENCY DEPARTMENT EMPLOYEES

(whose salaries are reimbursed by
the Treasury Department)
OTHER EMPLOYEES (whose salaries are

reimbursed to the bank, including
building employees in space rented
to tenants)
GRAND TOTALS
TEMPORARY EMPLOYEES

868

858

1

8

(not included

in above)

1,500

9,660

NOTE
Detailed statistical tables pertaining to the Twelfth Federal Reserve District and the Federal Reserve Bank of San Francisco will
appear in the Annual Report of the Federal Reserve Board. Copies
of the Board's report may be obtained, when published, from the
Federal Reserve Board at Washington, D. C.




26

THIRTEENTH ANNUAL REPORT

PRINCIPAL OPERATIONS
FEDERAL RESERVE BANK OF SAN FRANCISCO
The following table presents in comparative form for the past three years the
volume of the principal operations of the bank, which are of such character that they
can be expressed in quantitative terms.
1927
Supplying- Currency and Coin
Currency Received and Counted:
Individual notes counted
Dollar amount received and
counted
Coin Received and Counted, a service previously performed largely
by the Subtreasury, but now entirely in the hands of the Federal
Reserve Bank:
Number of coins handled in receiving and counting

Dollar amount received and
counted. .. .
Making: Loans and Investments
Bills Discounted for Member Banks,
either discounted customers'
paper or advances against notes
of member banks secured by
collateral in the form of United
States government securities or
commercial or agricultural paper:
Number of bills discounted
Dollar amount*
Bills Purchased for the Account of
this Bank:
Number. ..
Dollar amount

1926

1925

124,442,000

111,583,000

98,574,000

$927,786,000

$881,019,000

$782,218,000

109,252,000

79,311,000

54,425,000

$46,482,000

$42,428,000

$31,063,000

30,136
28,264
21,044
$2,949,165,000 $2,418,031,000 $2,152,987,0001
29,601
$343 586 000

q i rrp-7
Ox ,OU /

$321,122,000

26,983
$280,994,000

Collecting- Checks, Drafts, Notes,
and Coupons
Checks handled for collection for
banks in all parts of the country:
73,062,000
74,822,000
77,395,000
Number of items
$14,310,906,000 $15,627,527,000 $15,002,811,000
Dollar amount
Collection Items handled, including
drafts, notes, and coupons:
3,350,000
3,002,000
2,850,000
Number of items
$344,932,000
$302,151,000
$369,624,000
Dollar amount
Supplementary Services
United States Government Securities issued, redeemed, or exchanged, including government
bonds, notes, and certificates of
indebtedness:
613,000
345,000
362,000
Number of items
$218,985,000
$260,294,000$
Dollar amount
$560,781,000
Funds Transferred by Telegraph to
and from all parts of the country
for the Treasury Department and
for member banks:
145,000
140,000
128,000
Number of transfers
$14,998,311,000 $12,268,428,000 $10,672,119,000
Dollar amount
•Includes paper discounted for Federal Intermediate Credit Banks at Berkeley, California, and
Digitized forSpokane, Washington, amounting to $9,197,000 in 1927; $7,264,000 in 1920, and $1,651,000 in 1925.
FRASER figure; shown as $2,154,200,000 in Eleventh Annual Report.
tRevised
JRevised figure;
http://fraser.stlouisfed.org/ shown as $260,304,000 in Eleventh Annual Report.
Federal Reserve Bank of St. Louis

TWELFTH FEDERAL RESERVE DISTRICT
Includes the states of Arizona, except the five Southeastern Counties,
California, Idaho, Nevada, Oregon, Utah and Washington

Map showing territory of Head Office and Branches
of the Federal Reserve Bank of San Francisco