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1949
ANNUAL
REPORT
FEDERAL
OF
RESERVE
ST. L O U I S
BANK
FEDERAL RESERVE BANK
OF ST. LOUIS
February 15, 1950
To the Stockholders of the
Federal Reserve Bank of St. Louis:
I am pleased to present herewith the Annual
Report of the Federal Reserve Bank of St. Louis
for the year 1949.
Yours very truly.
l^iuZie\
President.
TABLE OF CONTENTS
T h e Economy in 1949
3
Production
3
Agriculture
5
Employment
5
Income
7
Expenditures
8
Construction
11
Banking Developments
13
Federal Reserve Policy
13
M e m b e r Bank Reserves
14
Eighth District Banking
16
Activities of the Federal Reserve Bank of St. Louis
20
Operating Functions—Member Banks
Check Collection
Wire Transfer of Funds
Money Operations
Noncash Collection
Safekeeping
Accounting Operations
21
21
23
23
24
24
24
Operating Functions—United States Gk)vernment.—
Fiscal Agency
O t h e r Fiscal and Custodial Work
25
25
25
Credit Functions
27
Consumer Credit
27
Supervisory Functions
28
Information a n d Analysis
28
Internal Operations
Personnel
Budget a n d Planning
Audit
Physical Plant
29
29
30
30
30
Statement of Condition
32
Earnings a n d Expenses
33
Directors a n d Officers
34
Page 2
THE ECONOMY IN 1949
W h e n the economic record of 1949 is view^ed in relation to that of
previous years the high average level of activity for the year as a whole
is impressive. Both in the nation and in the Eighth Federal Reserve
District, 1949 was a good year. I n each, total activity averaged out
at a level that was slightly lower than in the postwar peak year, 1948,
but higher t h a n in any other peacetime year.
This record was achieved despite appreciable declines in some important segments of the economy. Nationally these decreases were concentrated mainly in the business segment of demand (for inventories,
a n d new plant and equipment) and in farm prices. Consumer demand
fell off somewhat in the first p a r t of 1949, but then leveled off—and
subsequently recovered most of the loss. F a r m production also was
off from the 1948 record but was high relative to any other year.
I n this district, farm output dropped appreciably more than it did
nationally.
But before the downward adjustments became cumulative and
affected all segments of the economy, the downtrend was arrested
and then reversed. Subsequent recovery resulted in a year which as a
whole averaged out at a level just below t h a t of 1948.
Production
T h e total value of all goods and services produced in the nation
last year is estimated at $259 billion. In 1948 the nation's output was
valued at $262 billion. P a r t of this small decline reflected the decrease
in the physical volume of goods produced in the factories and mines
and on the farms of the nation. But at the same time a portion of
the decrease can be attributed to lower average prices.
T o t a l industrial production in the nation last year was about 8
per cent smaller than in 1948, as measured by the Federal Reserve
Board's adjusted index. Minerals production declined relatively more
t h a n production of manufactured goods. Substantially larger cutbacks
were m a d e in some manufacturing industries, particularly in the durable
goods group where aggregate output was off 11 per cent relative to that
in 1948. T h e decline in total output of nondurable goods was only half
as large, percentagewise, as in the durables.
Page 3
Industrial activity in the Eighth District also declined from the
previous year's peak level. Actual estimates of aggregate industrial
production in the district are not available, but various measures of
activity indicate that the decline in this region probably was relatively
smaller than that in the nation as a whole.
Manufacturing activity in the district trended downward during
the first half of the year but subsequently recovered a portion of these
losses. There were sizable reductions in operations in the primary
and fabricated metals industries. Manufacturers of electrical machinery, whose operations were at their peak in mid-1948, curtailed production in the early months of 1949 and nonelectrical machinery plants
also cut back during this period. The major reductions among manufacturers of nondurables were in the leather products industry. Shoe
output, estimated at 86 million pairs for the year, was off 10 per cent
from 1948. In other lines operations also averaged lower than in the
previous year, the principal exception being the food products industry
in the nondurables group and the transportation equipment industry
in the durable goods group.
GROSS NATIONAL PRODUCT
ANNUAL RATES
BILLIONS OF
DOLLARS
300
ANNUAL RATES
BILLIONS OF
DOLLARS
300
(QUARTERLY)
6 R 0 5S
NATIONAL PRODUCT
i>r\
200
^
200
PERSONAL
CONSUMPTION-v
,^
EXPENDITURES
#-*
1
1 J*
-
^.-—^ —
-
->'{
100
-^^
'
• •*" *
.^
^^
'--'
\ GOVT PURCHASES
1 ^ ' — - ' ' V '.;,*••••••••
l
•.4^ OF GOODS a
-'
•
V
SERVICES 1
/
1
y
' PRIVATE
•.
1
.
.
•• DOMESTIC a
|\
. J * - * . . . / " " . . * •XV'
...•VOREIGN I N V E S T M E N T y l . . ' . .
t:;^.*-rT,**^-7-».
1
' '^'
_•:
1
*
1
1
1 1
1939
1941
1943
1945
1947
1949
4 t h Quarter ISi49 Estimated By Council of Economic Advisors
SOURCE: Dept. of Commerce Estimates,
Seasonal V a r i a t i o n
Page 4
Adjusted For
100
Agriculture
Agricultural production in the nation and in the Eighth District
decUned in 1949 but in total output was second only to t h a t in 1948.
T h e index of aggregate crop production in the United States was 132
p e r cent of the 1923-32 average as against 137 per cent in 1948. T h e
yield index also was second only to the 1948 level, while planted
acreage was larger t h a n in any recent year.
C r o p production in the Eighth District was off more relative to
1948 t h a n was national output. T h e only exceptions to this general
decline in the district were a 2 per cent increase in wheat production,
a 5 per cent increase in hay production, and a fractional increase in
rice production. O u t p u t of rice in Arkansas reached a new high in
1949.
These increases were not large enough to offset declines in the production of cotton, corn, oats and tobacco. T h e decrease in cotton
production was the most serious crop decline in the district. T h e
1949 crop, amounting to 3.8 million bales, was off more t h a n a million
bales or 21 per cent as compared with production in 1948. This was
in sharp contrast to the 8 per cent increase nationally. Excessive moisture and boll weevil infestation caused the decline, despite a larger
planted acreage.
Larger-than-national decreases occurred in the corn-producing portions of the district where output was down 12 per cent from 1948
as against an 8 per cent decline in the nation. Tobacco production
was 4 per cent less t h a n in 1948 as compared with a 1 per cent increase
nationally, while district oats production was off 13 per cent as against
a n 11 per cent decline nationally.
Employment
T h e decline in industrial operations in 1949 was reflected in some
reduction in employment. However, total employment in the nation
last year averaged almost 59 million, down less than 1 million from
the record level in 1948. T h e decline was concentrated in the nonfarm
industries since average employment on the farms was slightly larger
t h a n in the previous year. Manufacturing employment was off 8 p e r
cent for the year.
Page 5
Accompanying the decrease in employment was a further expansion
in the nation's labor force. T h e increase, together with the decline in
the n u m b e r of persons actually employed, resulted in an increase in unemployment. During the year there was an average of almost 3.4 million
workers w^ho were seeking employment or about 1.3 million more t h a n
in 1948. T h e rise in unemployment occurred principally in the first half
of the year, coinciding with the downward trend in industrial operations.
From the peak in July, unemployment declined seasonally and then
remained fairly stable during the closing months of 1949.
I n addition to the lower level of manufacturing employment last
year there also was a small decline in the average length of the work
week. I n 1948, workers in the durable goods manufacturing industries worked an average of 40.5 hours per week. Last year there was
only one m o n t h in which the work week in these industries averaged
as m u c h as 40 hours. In the nondurable goods industries, too, there
was a decline in hours worked per week in 1949.
Employment trends in the Eighth District closely paralleled those
in the nation last year. T h e first half of 1949 was marked by declines
which in general were reversed at midyear and were followed by some
recovery in the third and fourth quarters.
I n the district's five largest labor market areas nonagricultural
employment averaged about 2 per cent less t h a n in 1948 when an alltime peak was reached. This represented a slightly larger decline t h a n
t h a t in the nation as a whole and resulted from a larger-than-national
decrease in nonmanufacturing employment. Manufacturing industries,
which employ almost one-third of the workers in the major district
cities, reduced their average employment less than nationally—5 per
cent as against 8 per cent in the nation.
I n three of the cities—St. Louis, Memphis and Little Rock—the
declines from 1948 were quite small. Nonagricultural employment in
each of these cities was only 1 per cent below the 1948 average. M a n u facturing employment in Little Rock was at about the same level as
in 1948, while in Memphis and St. Louis it dropped only 3 per cent
and 4 per cent, respectively. I n Evansville and Louisville, however,
there were sizable declines, particularly in manufacturing employment.
Industry in Evansville employed 9 per cent and in Louisville 10 per
cent fewer workers than in 1948.
Page 6
Unemployment increased in this district as it did in other parts of
the country in 1949. I t is estimated t h a t the n u m b e r of unemployed
workers last year was almost two-thirds larger t h a n in 1948, but it
should be remembered t h a t unemployment was abnormally low in
1948.
Income
T h e fact t h a t income received by individuals in 1949 totaled as
large as in the previous year, despite the decline in industrial operations
and farm production, was one of the significant developments in 1949.
Personal income in the nation last year amounted to about $210
billion, approximately $2 billion below the peak year, 1948. I n the
Eighth District, total income is tentatively estimated at $10.8 billion
or just under t h a t in 1948. I n the nation and in this district, aggregate
wages and salaries were larger t h a n in 1948, reflecting both the high
level of employment and the slightly higher wage rates paid in 1949.
F a r m income was off appreciably, with the district decline larger t h a n
t h a t in the nation. As noted elsewhere in this report, farm production
a n d average prices received by farmers for their products were down
from the 1948 levels. As a result, farm income nationally, which in
1948 was $23 bilHon, dropped to about $18.4 billion in 1949.
PRICES
RECEIVED AND
BY FARMERS
1910-1914 = 1 0 0
PAID
PERCENT
325
325
300
300
275
275
250
250
225
225
^ 2 0 0
200 1 ^
1949
1948
^Includes Interest And Taxes
SOURCE'- U S . Oept. of Agriculture
Page 7
T h e weakness in the agricultural situation was particularly significant
to the Eighth District. F a r m income represents a relatively larger
proportion of total income in this district t h a n in the nation. Thus,
even a decline in farm production and prices comparable to t h a t in
the nation would have h a d a relatively greater impact on this region's
income. I n 1949, however, output declined more in the district t h a n
in the nation. As a result, the drop in income received by the district's
farmers was somewhat larger t h a n the 20 per cent decline nationally.
Nevertheless, in the over-all impact on the district's economy the drop
in farm income was largely offset by increases in income from other
sources.
Expenditures
T h e fact that consumers' income last year remained relatively stable
in the face of the sharp decline in production a n d employment during
the first half year obviously was of fundamental importance to business.
It provided the purchasing power that was necessary to support consumers' expenditures at levels approximating those in 1948—and a
high level of consumer spending was a major requisite to the maintenance of total economic activity.
DEPARTMENT STORE SALES
1935 - 1939-100 PER CENT
400
400
^^.=£.\
350
EIGHTH
DISTRICT
350
300
300
250
250
200
200
ISO
'V
1948
1949
Page 8
• * ^
50
L a t e in 1948 consumer spending in the nation reached its peak.
I n the closing months of t h a t year, however, consumers cut down their
purchases of some durable goods. Sales of refrigerators a n d appliances
in general as well as furniture began to decline. But sales of nondurables
continued to increase and in the last quarter of 1948 were at their peak.
At the beginning of 1949 retailers generally were impressed by the
decline in consumer spending for durables—and were of the opinion
t h a t 1949 would see further declines in sales. Acting accordingly, they
began trimming their inventories in lines thought to be out of balance,
and reducing advance commitments for goods. During most of the
first nine months of the year, this policy of stopping inventory accumulation and, to some extent, of actually liquidating stocks was followed.
T h e effect in each case was to reduce d e m a n d for production that was
flowing into stocks. This in turn resulted in cutbacks in total industrial
production and employment as noted earlier.
But during this period consumers continued to spend their money.
T h e i r income remained high and it was supplemented by increased use
of credit and past savings. In the nation, total consumption expenditures for goods and services held at an almost constant level throughout
the year and were almost the same as the $179 billion in 1948.
Consumers in the Eighth District also kept their expenditures at a
high level. Tentative estimates indicate t h a t outlays for goods and
services declined just about 1 per cent from the previous year. P a r t
of the decline, of course, reflected lower average prices, and hence
the estimates tended to understate the physical volume of goods that
moved into the hands of consumers.
Total retail trade in the district and in the nation was strongly supported by the d e m a n d for automobiles. Less money was spent for other
durables, although in the last half of the year there was a sizable recovery
in the d e m a n d for furniture and major electrical appliances. This
increase, which coincided with the elimination of consumer credit
controls, was not sufficient, however, to lift the year's volume of durables other t h a n automobiles to that of 1948.
T h e weaknesses t h a t developed in nondurable goods lines in this
district were essentially the same as those which developed nationally.
Consumers spent fewer dollars for apparel, and in department stores
their purchases of piece goods and household textiles also declined.
T h r o u g h o u t a large p a r t of the nondurable goods field, however, declines
Page 9
in aggregate sales volume often reflected lower prices rather t h a n a
decrease in the physical volume of goods sold.
While the economy received as m u c h support from consumers'
expenditures in 1949 as in 1948, the impact of business outlays was
somewhat less. A decline in business investment in new plant and
equipment h a d been anticipated. Postwar industrial construction programs were well on their way to completion in 1948. This was particularly true in manufacturing industries and to a large extent it was
applicable to commercial construction. Additional expenditures in
the public utilities field were anticipated a n d in most industries outlays
for new equipment were expected to hold at a relatively high level.
I n total, however, investment in plant and equipment was expected
to decline. Consequently the drop in expenditures nationally from
$19.2 billion in 1948 to $17.9 billion in 1949, as estimated jointly by
the Securities and Exchange Commission and the D e p a r t m e n t of Commerce, came as no surprise.
I n this district as elsewhere in the nation, investment in new plant
facilities declined in 1949. Manufacturing industries in the previous
year began to reduce their expenditures for new plants and the downw a r d trend continued in 1949. Investment in commercial construction
apparently held at about the 1948 volume and a substantially larger
investment was m a d e in the public utilities industry.
T h e decline in business spending for inventories referred to earlier
was not foreseen, however. I n 1948, when stocks were being accumulated by manufacturers, wholesalers and retailers, the net addition to
nonfarm inventories represented an investment of $5 billion and in
the fourth quarter of t h a t year was at an annual rate of $7 billion. I n
1949 the picture changed rapidly and during m u c h of the year little,
if any, investment was for the purpose of building u p inventories in
excess of consumption requirements. This was true in the district as
well as nationally. Not until late in the year did investment begin to
flow into inventories.
I n part, the decline in business expenditures was offset by larger
outlays by Government—Federal, state and local. Federal Government
expenditures for goods and services rose from $21 billion in 1948 to
about $26 billion in 1949. O t h e r governmental bodies increased their
outlays from $16 billion to almost $18 billion in 1949. Despite the
expansion in public spending, however, the increase was not enough
to offset the large drop in private investment.
Page 10
Construction
Although investment in new industrial and commercial construction
declined in 1949, total new construction expenditures were at a record
level of more t h a n $19 billion. T h e increase over 1948 resulted largely
from a n expansion in public construction of schools, hospitals, highways
and other types of building. Aggregate public expenditures for construction rose 25 per cent to more than offset the 3 per cent decline
in privately financed projects. While private residential expenditures
also were smaller t h a n in 1948, measured in terms of the number of
units p u t under construction 1949 was the best year on record. M o r e
t h a n a milHon nonfarm dwelling units were started last year. M a n y
of these were begun late in the year and expenditures for materials
a n d labor on these will tend to bolster the construction industry during
the early months in 1950.
This shift in the relative importance of public construction nationally
was not typical of the Eighth District, according to available evidence.
EXPENDITURES FOR NEW CONSTRUCTION
IN THE UNITED STATES, 1946-1949
O
5
(BILLIONS OF DOLLARS)
10
15
1946
1947
1948
1949
[PRIVATE RESIOEI^fTIAL P ^ A L L
[MANUFACTURING
r^
OTHER PRIVATE
PUBLIC
E ^ ^ COMMERCIAL
SOURCE: U.S. DEPT. COMMERCE AND LABOR
Page 11
20
As measured by the value of construction contracts awarded in the
major portion of this district, publicly financed projects accounted for
a relatively smaller proportion of the value of all awards in 1949 than
in 1948.
The total value of work contracted for in the district last year was
at a new peacetime high of $671 million or 8 per cent larger than in
1948. There were gains in residential as well as nonresidential construction. The residential field was marked by a sizable increase in
privately financed building and by fairly large gains outside the larger
cities. St. Louis City and County and Louisville constituted the only
major urban areas in which the value of housing contracts increased
in 1949. In the nonresidential field a larger volume of construction
of public utilities and public works projects accounted for most of the
increase in total nonresidential construction.
Construction costs in this area were stable during the year and probably averaged out at a level not much different from that in 1948.
Building materials prices moved downward during the first half of
1949, continuing the decline that began in the third quarter of 1948.
Decreases were fairly well limited, however, to lumber and paint. Some
increases in w^age rates were made during the year which to a large
extent probably offset the benefits resulting from some improvement
in productivity.
vQ^^^TD
Page 12
nt^mm^mmtH^
BANKING DEVELOPMENTS
Banking in 1949 experienced a profitable year. Loan totals averaged
about the same as in 1948, but investments were larger. Deposits
declined in the first p a r t of the year but regained this loss and expanded
further in the second p a r t . For m e m b e r banks, reserve requirements
were reduced, thus providing more free funds for acquiring earning
assets.
Federal Reserve Policy
T h e general policy followed by the Federal Reserve System during
1949 was to ease credit controls sufficiently t h a t the nation's banks would
be in position to moderate the economic downturn which began
in late 1948. I n the first p a r t of the year, bank loans declined more
rapidly t h a n usual. I n order to add liquidity to the banking system
so t h a t sound credit d e m a n d by business, agriculture and individuals
could be met easily, the System early in M a y reduced reserve requirements for m e m b e r banks, freeing about $1.2 billion in reserves. At the
end of J u n e the System's temporary additional authority over reserve
requirements expired and another $800 million in reserves were freed.
I n August and in September, requirements were reduced again, freeing
an additional $1.8 billion in reserves.
Accompanying these actions the Federal Reserve took other steps
to remove such credit barriers to recovery as might exist. I n M a r c h
and again in April, consumer credit controls were eased. Also in M a r c h ,
margin requirements on listed stocks were lowered—loan values were
raised from 25 to 50 per cent. At the close of J u n e all System control
over consumer credit was eliminated with the expiration of authority
in this field.
As the downward adjustment in economic activity slackened after
midyear and was replaced by a moderate recovery, growth in bank
credit was resumed. As a result of the renewal of the expansion in
bank credit, the Federal Reserve System did not ease m e m b e r bank
reserves further after the August reduction. M a r k e t forces were allowed
to tighten money m a r k e t rates somewhat in the last six weeks of t h e
year. T h e System w^orked generally in the direction of m o r e flexible
short-term money rates so as to be in better position to deal either with
resumption of inflation or return of recession.
Page 13
W i t h t h e decline in loans a n d the addition of reserves, b a n k d e m a n d
for U n i t e d States Government securities increased. Prices rose a n d
yields declined. D u r i n g the first half of the year, t h e Federal O p e n
M a r k e t C o m m i t t e e a t t e m p t e d to m o d e r a t e the effect of the increased
d e m a n d by supplying securities from the System portfolio. Substantial
sales were m a d e to the m a r k e t in this period, a n d these plus retirem e n t of some m a t u r i n g securities reduced System holdings of Governments by $3.8 bilHon in the first half of 1949.
O n J u n e 28, the O p e n M a r k e t C o m m i t t e e announced a change
in policy. I t stated it would a t t e m p t to buy a n d sell G o v e r n m e n t securities with p r i m a r y regard for the general business a n d credit situation
r a t h e r t h a n preservation of a definite r a t e p a t t e r n . A t the same time
it stated t h a t the policy of m a i n t a i n i n g orderly conditions in the Gove r n m e n t security m a r k e t , a n d t h e confidence of investors in G o v e r n m e n t
bonds, would be continued. U n d e r this policy System sales slackened,
but it was necessary to continue to supply some securities to t h e m a r k e t
to m a i n t a i n order. System holdings declined a n o t h e r $700 million n e t
in the last half of the year.
Member Bank Reserves
Already noted w^as System action in reducing reserve requirements
by about $3.8 billion during 1949. In addition to this gain, the member
banks increased their total reserves during the year by another $700
odd million, as net currency inflow, Treasury operations and net gold
inflow added to reserve balances substantially. These funds were used
primarily to add to bank holdings of Government securities, most of
them being supplied by the Federal Reserve System. In other words,
Federal Reserve action to reduce reserves, plus the reserve gains from
other sources, resulted in a transfer of earning assets to the banking
system.
There were some differences between the first and second halves
of the year. In the first part, most factors (entirely exclusive of System
statutory reserve requirement reductions) added to reserve balances
of member banks. During the first six months gains from regular factors
totaled about $1.7 billion. System action freed another $1.2 billion
and the decline in deposits released about $600 million more. In the
second half, the regular factors reduced reserves, and deposit growth
Page 14
absorbed some additional funds for required reserves. But the reduction in statutory requirements more t h a n met the losses, so that the
banks still h a d a net gain of free funds. T h e following table shows
the factors for each half year and the full year.
F A C T O R S A F F E C T I N G MEMBER B A N K RESERVE
BALANCES
(In Millions of Dollars)
12/29/48
12/29/48
6/29/49
( + ) indicates addition to,
( - ) indicates reduction in free reserves.
^Q
12/28/49
^Q
6/29/49
^Q
12/28/49
Currency in circulation
Treasury operations
Gold and foreign account operations
Miscellaneous (including Federal
Reserve
float)
N e t sub-total
+
+
+
560
324
42
+ 899
+ 803
+337
— 339
— 479
— 295
— 195
+ 731
— 329
+1,710
+
-
+3,800
+1,200
+2,600
— 62
+3,738
+ 646
+1,846
— 708
+1,892
4,469
3,556
913
1,058
5,527
1,058
4,614
679
1,592
—4,558
—3,830
— 728
— 112
—4,670
— 105
—3,935
—
7
— 735
857
679
857
Reduction in statutory requirements
Change in requirements due to
deposit changes
Net sub-total
Additions of free reserves from
above
Excess reserves as of earher d a t e
shown
Total free funds available
Federal Reserve holdings of
Governments
Loans, discounts and advances
to banks
Total free funds used
Estimated excess reserves as of
later date shown
Page 15
134
979
Eighth District Banking
Eighth District m e m b e r banks' reserve positions, measured by the
average daily balance of reserve accounts with the Federal Reserve
Bank of St. Louis and their deposit liability subject to reserve requirements, for the semi-monthly periods of December 16-31, 1948, J u n e
16-30, 1949, and December 16-31, 1949 are shown in the following
table.
RESERVE P O S I T I O N OF E I G H T H D I S T R I C T M E M B E R
BANKS S E L E C T E D DATES^
(In Millions of Dollars)
Net D e m a n d Deposits
subject to reserve
requirements
T i m e Deposits
Required Reserves
Excess Reserves
December, 1948
June, 1949
3,330
943
714
42
3,054
973
622
34
December, 1949
3,308
964
556
50
^Deposits and reserves shown are averages of daily figures for the second half of month.
Loan Trends—At the close of 1949 total loans of Eighth District
m e m b e r banks were $1.5 billion, almost as high (within 0.5 per cent)
as a year earlier. Between the year-end dates, however, the course of
loans was quite different than in the previous year.
Ordinarily in this district total bank loans decline in the first half
of the year and expand in the second half. During many of the w a r
and postwar years this seasonal movement was obscured by other factors.
I n 1949 the movement was quite pronounced, with the seasonal change
apparently reinforced to a degree by the moderate downturn in general
economic activity in the first three quarters of the year.
F r o m December, 1948 to July, 1949, total member bank loans in
this district dropped $161 million. After recovering in July, volume
fell off again in August to the low point of the year, down $169 million
or 11 per cent from the previous year end. A year earlier the low point
came in M a y and the drop from the year-end high was m u c h smaller
—$38 million or 3 per cent. Loan volume rose sharply in the later
months of 1949, the increase amounting to $162 million in September
Page 16
through November alone. This a u t u m n rise was particularly noteworthy
in view of the fact that the expansion in GGG loan volume, which was
a n important factor in the seasonal rise in 1948, was considerably
reduced in strength in 1949. With a short district cotton crop a n d
low mill inventories which needed building up, GCG loan volume at
banks in Memphis and Little Rock late in 1949 was less t h a n one-third
as large as a year earlier.
Significantly, the composition of total loans was changed at the end
of 1949 by comparison with the pattern prevailing at the close of 1948.
O n the basis of the classifications of loans reported by 34 larger m e m b e r
banks in the district, there was a shift toward real estate loans and to
a lesser extent toward consumer credit loans to help m a k e u p for the
loss in business and agricultural loans. It should be noted that district
m e m b e r banks increased their real estate loans more rapidly and their
consumer credit loans less rapidly t h a n did all weekly reporting m e m b e r
banks in the nation. T h e more rapid expansion of real estate loans in
this district t h a n nationally is explained in p a r t by the fact that private construction held u p somewhat better in this district than it did
nationally and in p a r t by the fact t h a t during the second half of the
year the return on mortgage loans became relatively more attractive
to the banks as money-market interest rates declined after June.
TOTAL
EIGHTH
MILLIONS
1700
DISTRICT
LOANS
MEMBER
MONTHLY
1948 - 1949
BANKS
MILLIONS
1700
1600
1600
1500
1500
1400
1400
I30a
I300
1200
1st
QUARTER
2nd
QUARTER
3rd
QUARTER
Page 17
^ I 2 0 0
4th
QUARTER
Loan trends also differed as between big city and country banks.
At the larger urban institutions the loan decrease in the first half year
apparently was more than seasonal, and, similarly, the fall expansion
was more than seasonal. At rural banks the usual pattern is a rise
in spring and summer and a decline in the fall after harvesting. T h e
spring-summer increase in 1949 was smaller than in 1948, but there
was some gain—2 per cent as against the previous year's 13 per cent.
Country bank loan volume, however, increased contraseasonally in
the latter part of 1949. As a result, total loans were slightly higher
at the close of 1949 than a year earlier.
Deposit Trends—At the close of the year, deposits (excluding interbank deposits) at all Eighth District member banks totaled $3.2 billion,
just fractionally more than a year earlier. While deposit levels were
practically the same at the two year-end points, some decline in deposits
took place in the first six months, followed by a recovery of equal magnitude in the last half of the year.
GROSS DEMAND DEPOSITS, EXCEPT INTERBANK
ALL M E M B E R
BANKS, 8th D I S T R I C T
1948 - 1949
MONTHLY
Millions of Dollars
3300
Millions of Dollars
3300
3200
3200
3100
3100
3000
3000
2900
2900
2800JI vF ^
M A
M
J
J
Page 18
A
S
O
2800
N^O
T h e r e was a slight tendency for deposits to shift from the rural
to the city banks. This reflected not only the decline in farm income
(stronger in this district than nationally) but also the fact that farmers'
expenditures were continued at a relatively high level despite the
income decline. Undoubtedly there were important deposit losses in
the case of banks in certain areas which were hit relatively h a r d e r
t h a n the rest of the district—coal mining areas or some cotton producing areas, for example—and the steadiness of the aggregate volume
should not minimize the losses where they did occur. T h e over-all
picture, however, is one of unusual steadiness in face of the general
business decline in the first part of the year.
Modest G a i n in T i m e Deposits—Time deposits at district m e m b e r
banks at the close of 1949 totaled $965 million, u p $19 million (2 per
cent) for the year. These deposits were above the 1948 year-end
level at both city and rural banks. T h e growth occurred in the first
half of the year, principally in February and April. I n view of the
business slowdown, the increase in unemployment, and the reduction
in farm income, which was sharp in some instances, the growth in
time deposit volume is noteworthy. I t suggests t h a t these deposits
are in firm hands as a fairly permanent p a r t of private investment
and savings plans, and that they will not be easily liquidated.
vQ^:==^^
Page 19
ACTIVITIES OF THE FEDERAL RESERVE
BANK OF ST. LOUIS
As one of twelve regional banks which, with the Board of Governors
and the member banks, comprise the Federal Reserve System, the
Federal Reserve Bank of St. Louis engages in a variety of activities.
All of its activities are either direct central banking operations, or
arise from such operations, or are necessary to maintain the work.
The staff departments of Research and Bank Relations keep the
directors and officers informed on developments—both national and
regional—in connection with this bank's responsibility, as part of the
Federal Reserve System, in formulating monetary policy. Partly as
a by-product of this function, partly as a direct service, they also provide
and disseminate economic information to banks, business and the
general public.
The Examination Department is charged with the supervision of
member banks, particularly state member banks. Through periodic
examinations and counsel with member banks it contributes to the
strength of Eighth District banking in particular, and to stability in
the economy in general.
The Credit Department deals directly with member banks in advances
and discounts, and vN^orks with them on industrial loans under Section
13b of the Federal Reserve Act. For part of 1949, a Consumer Credit
Department was concerned with regulation of such credit.
The operating departments, in performing such typical central banking functions as check collection, money shipments and receipts, keeping books on member bank reserve balances, etc., naturally extend a
number of services to banking, particularly to member banks. Other
operating departments in carrying out the function of Fiscal Agent
of the United States Government, perform services directly for Government. Out of some of these also arise services to the commercial banks
—such as collection of certain noncash items and safekeeping of securities.
Finally, the internal staff departments such as Audit, Personnel,
Budget and Planning, Banking House, etc., have a variety of functions
necessary to the maintenance of any large-scale organization.
^ T h e efficiency of operations is increased by the presence of three
branches of the Federal Reserve Bank of St. Louis—at Little Rock,
Louisville and Memphis. Aside from certain staff departments, each
Page 20
of these branches is organized along the general lines of the St. Louis
office. By dividing the Eighth District geographically into four sections,
the functions of the Bank can be performed m o r e smoothly a n d quickly.
D u r i n g 1949, the number of employees at the St. Louis Bank a n d
branches continued to decline from the w a r t i m e peak level. T h e J a n u ary 1, 1950 total of 1,070 reflects a net reduction of 61 people during
the year. During 1944 and 1945 total employment r a n slightly in excess
of 1,500. At the beginning of 1941 it was 677.
While m u c h of the decline in employment in the postwar years can
be attributed to a decrease in operating volume, a large part, particularly in the last two years, is traceable to increased efficiency. I n
turn this reflects a more stable working force and sharply lessened
employment turnover. Last year the Bank a d d e d only 177 employees
to offset, in part, 238 separations. I n 1948 additions were 281 a n d
separations 335. I n 1942, *in order to effect an increase of 328 in total
employment, the Bank actually h a d to hire 883 people to offset a loss
of 555 from separations.
It is doubtful t h a t much further reduction in employment will take
place in the near future. A large p a r t of the increase relative to 1941
reflects expanded operations in Check Collection and Fiscal Agency
D e p a r t m e n t s . It appears unlikely t h a t volume operations in these
departments will shrink appreciably in the foreseeable future.
I n the brief review which follows, the activities of the Federal
Reserve Bank of St. Louis are grouped into six broad functional
divisions: (1) O p e r a t i n g functions concerned primarily with m e m b e r
banks; (2) operating functions concerned primarily with services to
the United States Government and its agencies; (3) credit functions;
(4) supervisory functions; (5) informational functions; and (6) internal operating functions. Activities of the h e a d office a n d branches are
treated as combined.
Operating Functions—Member Banks
During 1949, about 42 per cent of the employees of the Federal R e serve Bank of St. Louis were engaged in operating functions concerned
primarily with m e m b e r banks.
Check Collection—For the sixteenth consecutive year, volume of
checks collected in 1949 increased over the preceding year. Almost
Page 21
129 million items were handled in 1949, compared with 121 million
in 1948. Volume in the past year was about three a n d a half times
t h a t of 1933 a n d almost double t h a t of 1939. I n terms of dollars, checks
collected in 1949 aggregated almost $42 billion, about $2 billion less
t h a n in 1948, reflecting the moderate d o w n t u r n in business activity.
Dollar volume in 1949 was almost eight times t h a t of 1933.
Although 1949 volume (number of items) increased 6 p e r cent over
1948, the n u m b e r of persons employed in the operation declined
approximately 8 p e r cent, indicating increased efficiency.
Air transportation as a means of expediting the collection of checks
has been used by t h e Bank for nearly a q u a r t e r of a century. As air
service grew a n d n e w lines were opened a n d schedules expanded, its
use gradually increased. T h e program was accelerated in recent years
and since August 1, 1947 checks have been sent by air in all cases
where presentation or availability of funds m a y be advanced by t h e
use of air transportation.
F u r t h e r progress was m a d e in 1949 in connection with the check
routing symbol p r o g r a m . A survey conducted near the close of the
past year indicated t h a t nearly 67 per cent of all checks on p a r banks
in this district now bear the symbol. A similar survey m a d e a year
earlier indicated 58 per cent use.
NUMBER OF CHECKS HANDLED
AT ST LOUIS AND BRANCHES
DAILY
AVERAGE
THOUSANDS
500
THOUSANDS
500TOTAL
y^^
400
400
300
300.
COUNTRY
CHECKS
,••••
•
»
••
200
ZOO
GOV'T CHECKS
too ,^^
^^^
^ * ^ » - ^ - — ^
CITY
_^^^
^-•..^'
.-^^-s
-*.^^-*^
^ too
^ — • ^ • ^ * ^ ^ * . — - — ^ _ ^ > ^ — > > ^ ^ " ^
CHECKS
O
1948
1949
Page 22
Wire Transfers of Funds—The number of wire transfers of funds
handled for member banks in 1949 totaled 88,000 and involved $16
billion. These figures represent a 1 per cent decrease in number of
transfers and a 13 per cent increase in amount from 1948. During
December, 1949, dollar volume of transfers amounted to $1.2 billion,
the first time that monthly dollar volume topped the bilHon dollar
mark.
Money Operations—The number of units handled in 1949 increased
over 1948, but dollar aggregates declined. Currency sorted and counted
aggregated 199 million pieces with a dollar value of $1.1 billion in
1949. In the preceding year the unit volume was 196 million but dollar
value was slightly higher.
Coin counted increased substantially in 1949 both in number of
pieces and value. More than 286 million pieces with a value of $25
million were counted in 1949, as against 239 million pieces and $21
million value in 1948. The increase reflected mainly heavier return
flow of loose coin, as banks increased their preference for wrapped
coin, a new service inaugurated last April.
Work with respect to shipments of currency also increased in 1949,
primarily as a result of increased use of Federal Reserve Bank services
by member banks requesting shipments to nonmember banks. In
CURRENCY
AND
COIN
NUMBER OF PIECES HANDLED
AT ST LOUIS AND
BRANCHES
DAILY
MILLIONS
2
I
AVERAGE
MILLIONS
2
-
CURRENCY
SORTED a COUNTED
I
I
I
1
1948
1949
Page 23
I
I
I
1949 there were 45,500 individual currency shipments, 3,000 more t h a n
in 1948. N u m b e r of coin shipments declined by about 1,500.
Noncash Collection—In 1949, the Bank handled 475,000 noncash
collection items. Because of a change in operating procedure, precisely
comparable figures are not available for 1948, but some small decline
in activity in 1949 was indicated.
About 880,000 United States Government interest coupons (including
those clipped from securities in our safekeeping and those received
from banks a n d others) were paid. Again a change in procedure
makes d a t a for 1948 not exactly comparable, but there also was some
decline in volume in this activity in 1949.
Effective November 1, 1949, the Treasury D e p a r t m e n t changed
its operating procedure in connection w^ith redemption and processing
of U n i t e d States Government interest coupons. These are now accounted
for by coupon value without regard to individual issue, instead of
having to be sorted by issue. This change has eliminated considerable
sorting work on the p a r t of depositing banks.
Safekeeping—During 1949, securities were held in safekeeping for
483 of the 496 m e m b e r banks and 520 of the 979 n o n m e m b e r banks
in the Eighth District. At year end almost 160,000 individual securities
were so held. All of the securities held for n o n m e m b e r banks were in
the form of W a r L o a n collateral (now Treasury T a x and L o a n collateral ) , withheld taxes collateral, or as collateral to secure Governm e n t deposits of public funds, since safekeeping services are not otherwise available to n o n m e m b e r banks. During the year 71,500 securities
were received a n d 75,000 securities were released, a total of 146,500
"in a n d o u t " transactions. All safekeeping records are carried on key
p u n c h cards, a n d the entire operation is fairly well mechanized.
As they m a t u r e , coupons are clipped from securities held a n d t h e
proceeds credited to t h e banks. During the year 265,000 coupons having
an aggregate p a r value of more t h a n $18 million were so handled.
Accounting Operations—The 496 m e m b e r banks of this district
m a i n t a i n reserve balances with the Federal Reserve Bank of St. Louis.
I n addition, 35 n o n m e m b e r banks maintain clearing accounts. Daily
transcripts are furnished each of these banks—reflecting details of
charges a n d credits arising from check collections a n d clearings, nonPage 24
cash collection transactions, transfers of funds, money shipments a n d
receipts, and other deposits and withdrawals of funds. Changes in
capital stock of this Bank owned by member banks also involve accounting operations.
A considerable volume of accounting work at the St. Louis Bank
arises from operations as Fiscal Agent for the United States Government. O n e phase alone—handling of withheld taxes, in which funds
are received from the commercial banks maintaining such special
deposit accounts and credited to the United States Treasurer—involved
144,000 receipts in 1949.
I n addition, accounting operations are concerned with internal
affairs of the Bank. Transactions through the Federal Reserve Interdistrict Settlement Fund, this Bank's share of transactions of t h e
System O p e n M a r k e t Account, and internal expense items were major
sources of activity in 1949.
Operating Functions—United States
Government
During 1949, about 18 per cent of the employees of the Federal
Reserve Bank of St. Louis were engaged in operating functions concerned primarily with services to the United States Government and its
agencies.
Fiscal Agency—Much of the work in connection with this function
relates to activity in sales, redemption a n d reissue of U . S. Savings
Bonds. I n some of this work there is direct contact with the general
public, but the great bulk of transactions is with issuing and paying
agents—banks, businesses and others.
Both in direct dealings and in dealings with agents, activity in 1949
was off somewhat from 1948. At the close of 1949, the Bank was
working with 1,625 issuing agents and 1,556 paying agents—in total
almost exactly the same number as a year earlier. Sales by issuing
agents in 1949 totaled 2,180,000 pieces—about 27,000 less than a year
earlier. Redemptions by paying agents were m u c h smaller in 1949
t h a n in 1948—about 480,000 fewer pieces. Direct issue of Series E,
F and G Bonds by this Bank involved 277,000 pieces, a n d redemptions
totaled 143,000 pieces. In combination, direct transactions in 1949
accounted for about 20,000 fewer pieces t h a n in 1948.
Page 25
Activity in reissue (changes in name of owner or beneficiary for
various reasons, or replacement of bonds lost) increased in 1949, with
267,000 pieces so handled—almost 30,000 more than in 1948.
Most of the other work in Fiscal Agency involves sales, exchanges,
maturities and transfers of marketable Government securities. In 1949,
about 7,700 applications for new offerings were processed, and 33,000
individual securities were issued—in both cases somewhat more than
in 1948. Transactions involving Special Depository Accounts also
were somewhat more in 1949 than in 1948. Exchange and redemption
transactions fell off in volume, as did transactions involving telegraphic
transfers of securities and purchases and sales for the account of
member banks.
O n e function was revived in 1949—processing of applications for
exchanges involving Government instrumentalities. In addition, the
detail of handling certain Treasury transactions, including more extensive records and tabulations, increased the work load somewhat.
In summary, operating volume in Fiscal Agency work in 1949 was
smaller than in 1948. Employment decreased more than volume, however, pointing to increased efficiency per worker.
SALES
AND
REDEMPTION
OF U.S. SAVINGS B O N D S
8th R R.
THOUS.
OF
PIECES
17
DAILY
DISTRICT
AVERAGE
1949
1948
Page 26
THOUS. OF
PIECES
17
Other Fiscal and Custodial Work—A n u m b e r of United States
Government agencies are served by the Federal Reserve Bank of St.
Louis. This Bank issues disbursement checks for the Reconstruction
Finance Corporation and its loan agencies. It also receives remittances
direct from R F C borrowers and loan agencies. A considerable volume
of securities, notes, deeds of trust and other valuables is held in safekeeping for the Corporation.
Among other functions, the Bank does work in connection with the
Production and Marketing Administration program of farm price
support loans, and handles certain fiscal and custodial work for the
Public Housing Administration and the General Services Administration. Also certain reports are collected for the Treasury D e p a r t m e n t ;
for example, reports of unusual currency transactions and transactions
with, or for the account of, foreign interests.
Credit Functions
With m e m b e r bank reserve positions generally easier in 1949, direct
credit granting to member banks was on a smaller scale t h a n in 1948.
Just 37 banks borrowed as compared with 49 in the preceding year.
T h e aggregate number of advances in 1949 was 525 and the aggregate
amount was $692 million. In 1948, about $945 million was advanced.
T h e peak in outstandings during 1949 was $21 million and came at
the close of September. All but two advances in 1949 were secured
by United States Government obligations.
Late in September, 1949 a circular was sent all banks calling their
attention to the availability of financing under Section 13b. At the
close of the year one industrial loan commitment (under Section 13b)
was outstanding; the amount involved was $500,000. T w o applications
totaling $230,000 were pending at year end. During the year the
number of inquiries concerning such loans increased.
Consumer Credit—Until June 30, 1949, regulation of consumer
instalment credit in the Eighth District was a function of this Bank.
Consumer credit regulation had been re-authorized by the Congress in
mid-August, 1948 as a temporary measure. T h e authorization expired
at mid-1949.
I n the first half of the year, work under this function involved
issuance of certificates of registration, interpretation of Regulation W
Page 27
and investigation and examination of vendors and lenders. The department handling this work was disbanded after June 30.
Supervisory Functions
During the course of the year, in conformity with established
policy, each of the 171 state member banks in the district was examined
at least once. Following long-standing practice, examinations were
made jointly with examiners for the seven State Banking Departments
of the district, except in those few instances where practicable schedules
could not be arranged. In addition a number of investigations, both
joint and independent, were made. A table showing the number of
examinations and investigations undertaken during the year follows:
E X A M I N A T I O N S O F S T A T E M E M B E R BANKS
Joint
Independent
Commercial Departments
161
12
Trust Departments
49
—
Holding Company Affiliates
—
1
Affiliates other than Holding Companies
14
2
INVESTIGATIONS
Holding Company Affiliates
Affiliates other than Holding Companies
Joint
1
30
Independent
1
4
Information and Analysis
The service of providing information on and analysis of economic
conditions for banks, businesses and the public grows out of several
functions of the Federal Reserve Bank of St. Louis. The directors and
officers need to be kept informed on economic developments in the
nation and the district in order to fulfill their responsibilities as a
part of the Federal Reserve System. The Board of Governors in Washington for similar reasons wishes factual and interpretive reports on
district developments. The collection of regular statistical material,
partly as a by-product of other activities, partly as a definite program,
is a typical central banking function.
Much of this information is useful to the business community and to
individuals, and hence is made available—through statistical releases,
Page 28
through the Monthly Review and through special publications. But
beyond this, the Bank feels a responsibility to work with various groups
which are endeavoring to make the Eighth District a better place in
which to live and work. Among such groups are private organizations
such as the Committee for Economic Development; T h e National Planning Association's Committee of the South; state and local associations
of businessmen, farmers and professional m e n ; the state universities;
various state and Federal agencies; and the state bankers' associations.
T h e Bank is keenly interested in problems connected with regional
economic development. T h e Eighth District is a low income region.
T h e Bank, along with many others, is studying the broad aspects of the
problem of raising income in the district. Results of such studies are
given publicity through printed media and through special meetings
and speeches.
Most of the 30 meetings held in 1949 were sponsored jointly by the
Federal Reserve Bank of St. Louis, the state bankers' associations a n d
the state universities. About 1,500 Eighth District bankers, bank
directors and others attended. All but four of the meetings dealt with
problems of resource development in the district—in agriculture and
in forestry. These four were aimed at problems of banking policy and
operations.
I n addition to these activities, representatives of this Bank participated in 222 meetings sponsored by banker groups a n d others, and
m a d e 159 public addresses. More than 1,700 individual visits to Eighth
District banks were made by officers and special representatives. About
2,900 students, teachers, bankers and businessmen were conducted on
tours through the head office or branches.
Internal Operations
Functions necessary to keep the complex machinery of the Bank
operating at full efficiency are numerous a n d varied. Such internal
operations run the gamut from preparing budgets to painting walls,
from hiring and training employees to installing electrical equipment
for power. Employees needed for these internal operations in 1949
totaled 32 per cent of total employees.
P e r s o n n e l — T h e decline in total employment, a n d the decrease in
turnover, lessened the amount of work necessary to keep the various
departments of the Bank adequately staffed. A t the same time, internal
Page 29
transfers, maintenance of records for the job evaluation and merit
review programs, and interviewing were heavy by any but wartime or
immediate postwar standards.
One major personnel development of 1949 was the inauguration of
a new executive training program in the bank. Its objectives are:
1. To offer opportunities for training and advancement to individuals currently employed by the bank who are believed
to possess qualities required in more responsible positions.
2. T o develop an alert and trained group of potential officers,
department heads, supervisors and specialized personnel.
3. To recruit into the organization and train a few^ college
graduates who are believed to possess unusual qualities and
who should be capable of absorbing accelerated and specialized training.
Substantial progress toward the first two of these objectives was
made in 1949. T h e program, of course, is long-range in emphasis and
is expected to produce cumulative improvements.
Budget and Planning—The Bank operates under a budget which is
prepared on a calendar year basis and contains each item of expense
expected to be incurred during the budget year. Actual expenditures
for the calendar year 1949 were within the budget.
The budget is used to establish predetermined objectives and provides the basis for measuring performance against these objectives; it
supplies advance estimates of expense which are useful in considering
changes in present policies or in establishing future policies; it stimulates
cost consciousness by fixing the responsibility for expense control upon
individuals; and it enforces better planning by showing good or adverse
trends currently.
Audit—The primary function of the Audit Department is to maintain a check on operating procedures and controls, with particular
emphasis on those operations involving money or securities. During
1949, as in previous years, audits were conducted at irregular intervals.
Physical Plant—Rehabilitation of the old Nugent property adjacent
to the Federal Reserve Bank at St. Louis was virtually completed in
1949. The property was acquired by the Bank in June, 1944 and was
Page 30
partially rehabilitated in 1945 and 1946 to accommodate urgent needs
for space arising from the war and immediate postwar increase in work.
Only work vital for this purpose was done when building labor and
materials were short.
T h e rehabilitation program was resumed when this situation eased.
T h e exterior was refaced; mechanical equipment and plumbing put in
order or replaced; air conditioning, acoustical ceiling, fluorescent lighting and tile flooring installed. It will be ready for occupancy in early
1950.
At St. Louis, construction was started in 1949 on a parking garage
at Fourth and St. Charles Streets. T h e garage is to be a single-story
structure with three-level parking—basement, street level and roof.
I t will be used primarily to accommodate the Bank's, employees', visitors'
and customers' automobiles. At the end of 1949 excavation h a d been
completed and the pouring of footings and foundation walls begun.
Also at St. Louis, in 1949 installations were m a d e in the m a i n
building of electrical systems to allow for the purchase of all electrical
power requirements, and to retire the main generators to stand-by
equipment for emergency use. All circuits, with the exception of those
supplying motor equipment, were converted to alternating current, the
main switchboard and branch distribution panels were replaced, and
one of the two direct current generators was replaced with an alternating current generator.
At Little Rock, a contract has been let for the extension of the
existing mezzanine around the main banking room. Alterations will
include the installation of fluorescent lighting and acoustical metal
tile ceiling, and will provide approximately 2,000 square feet of additional floor space.
A t Louisville, preliminary planning is under way by architects
for a new branch building. Preliminary studies indicate t h a t construction on the site of the present branch building is feasible and desirable.
Also the Bank finally was able to consolidate its ownership of all
ground beneath it. As is fairly common in downtown St. Louis, p a r t
of the ground upon which the Bank stands was held in a long-term
trust a n d could not be sold without permission of the court. T h e court,
in early 1950, permitted the trustees to dispose of the lot not previously
owned by the Bank and it has now been purchased.
Page 31
COMPARATIVE STATEMENT OF CONDITION
ASSETS
Dec. 31, 1949
Dec. 31, 1948
.$ 686,839,736
42,929,214
18,957,850
$ 669,692,232
44,871,088
16,621,474
748,726,800
731,184,794
D I S C O U N T S AND ADVANCES
2,502,000
U. S. G O V E R N M E N T S E C U R I T I E S 1,020,561,000
7,344,500
1,288,272,000
GOLD CERTIFICATES
REDEMPTION FUND
O T H E R CASH
Total Cash
Total Loans and Securities
F. R. N O T E S O F O T H E R BANKS...
UNCOLLECTED ITEMS
BANK P R E M I S E S (NET)
O T H E R ASSETS
Total Assets
LIABILITIES
FEDERAL RESERVE NOTES
DEPOSITS:
Member Bank—Reserve Account
U. S. Treasurer—General Account
Other Deposits
Total Deposits
D E F E R R E D AVAILABILITY
ITEMS
O T H E R LIABILITIES
Total Liabilities
CAPITAL ACCOUNTS
CAPITAL PAID IN
S U R P L U S (Section 7)
S U R P L U S (Section 13b)
O T H E R CAPITAL ACCOUNTS
Total Liabilities and Capital
Accounts
Page 32
1,023,063,000
1,295,616,500
8,780,550
171,468,707
1,926,133
6,805,515
8,853,020
160,762,303
1,941,265
8,596,921
1,960,770,705
2,206,954,803
1,090,460,145
1,144,264,725
611,854,729
31,880,808
57,262,821
776,122,438
84,997,905
33,121,267
700,998,358
894,241,610
136,305,898
475,311
138,814,065
564,806
1,928,239,712
2,177,885,206
6,894,200
19,117,860
521,317
5,997,616
6,692,850
17,973,827
521,317
3,881,603
1,960,770,705
2,206,954,803
COMPARATIVE STATEMENT OF
EARNINGS AND EXPENSES
1949
1948
17,022,134
16,544,716
4,050,803
3,861,194
117,300
384,052
115,550
351,700
4,552,155
4,328,444
12,469,979
12,216,272
1,646,280
126
322,194
137
1,646,406
322,331
154,618
2,116,055
185
2,129,843
10,294,486
9,014,434
N e t Earnings After Reserves and Payments
to United States Treasury
Dividends P a i d
1,551,226
407,193
1,394,141
392,300
Transferred to Surplus (Section 7)
1,144,033
1,001,841
S U R P L U S A C C O U N T ( S E C T I O N 7)
Surplus J a n u a r y 1
17,973,827
Transferred to Surplus—as above
1,144,033
16,971,986
1,001,841
Surplus December 31
17,973,827
EARNINGS
EXPENSES:
Operating Expenses
Assessment for Expenses of Board of
Governors
Federal Reserve Currency
Total Current Expenses
Current Net Earnings
Additions to Current Net Earnings:
Profit on Sales of U . S. Government
Securities
O t h e r Additions
Total Additions
Deductions from Current Net Earnings
Transferred to Reserves for Contingencies
Paid United States Treasury (Interest on
Outstanding Federal Reserve Notes)
19,117,860
Page 33
DIRECTORS AND OFFICERS
F e b r u a r y 15, 1950
DI
R E C T O R S
Chairman
Chief Counsel for Trustee
Missouri-Pacific Lines
St. Louis, Missouri
R U S S E L L L . DEARMONT,
Deputy
Chairman
Vice-President a n d M a n a g e r
Dixie W a x Paper Company
Memphis, Tennessee
W M . H . BRYGE,
L o u i s R U T H E N B U R G , Chairman
Board and Chief Executive
Servel, Incorporated
Evansville, I n d i a n a
Chairman of Board
Boatmen's National Bank
St. Louis, Missouri
TOM K . SMITH,
President
Planters Bank a n d T r u s t C o m p a n y
Hopkinsville, Kentucky
PHIL E. CHAPPELL,
of
Officer
M . M o s s A L E X A N D E R , President
Missouri Portland C e m e n t C o m p a n y
St. Louis, Missouri
J. E. E T H E R T O N , President
C a r b o n d a l e National Bank
Carbondale, Illinois
President
Plunkett-Jarrell Grocer C o m p a n y
Little Rock, Arkansas
RALPH E. PLUNKETT,
O F F I C E R S
C H E S T E R C . DAVIS,
F . G U Y H I T T , First Vice-President
O . M . A T T E B E R Y , Vice-President
Vice-President
W M . E . PETERSON,
Vice-President
W M . H . STEAD,
H . H . W E I G E L , Secretary and Assistant
S. F . G I L M O R E , Assistant
Vice-President
J. H . G A L E S , Assistant
Vice-President
F . N . H A L L , Assistant
Vice-President
G. O . HoLLOGHER, Assistant VicePresident
J. C, WoTAWA, General
Auditor
President
Vice-President
F. L. D E M I N G , Assistant
E. R. B I L L E N , Assistant
J. J. C H R I S T , Assistant
D , M . L E W I S , Assistant
H . B. K L I N E ,
Page 34
Counsel
Vice-President
Vice-President
Vice-President
Vice-President
MEMBER OF FEDERAL ADVISORY
COUNCIL
W . L. H E M I N G W A Y , Chairman of the Board
Mercantile-Gominerce Bank & Trust Company
St. LouiSj Missouri
MEMBERS OF INDUSTRIAL ADVISORY C O M M I T T E E ^
President
Western Textile Products Company
St. Louis, Missouri
President
American Furnace Company
St. Louis, Missouri
JACOB V A N D Y K E ,
CLARENCE S. FRANKE,
G. A. H E U S E R , President
H e n r y Vogt Machine Company
Louisville, Kentucky
J A M E S L O U I S CRAW^FORD,
MARVIN SWAIM,
President
Walsh Refractories Corporation
St. Louis, Missouri
Executive Vice-President and General
Alton Box Board Company
Alton, Illinois
Manager
LITTLE ROCK BRANCH
DIRECTORS
Chairman
A. H O W A R D S T E B B I N S , SR., Chairman of Board
Stebbins and Roberts, Incorporated
Little Rock, Arkansas
President
Bank of Russellville
Russellville, Arkansas
HARVEY C . C O U C H ^ JR.^
G E O . S. NEAL,
President
U n i o n National Bank
Little Rock, Arkansas
Executive VicePresident
T h e Arkansas National Bank
H o t Springs, Arkansas
T H O S . W . STONE,
CECIL C . C O X
Farmer
Stuttgart, Arkansas
President
First National Bank
Hope, Arkansas
J. B E A U G H A M P , President
Terminal Warehouse Company
Little Rock, Arkansas
LLOYD SPENCER,
STONEWALL
O F F I C E R S
C. M . STEWART, Vice-President
CLIFFORD WOOD,
Assistant Manager
Manager
CLAY GUILDERS,
1 As of March 1. 1950
and
Page 35
Assistant
Manager
LOUISVILLE BRANCH
DIRECTORS
Chairman
President
Mengel Company
Louisville, Kentucky
A. G. VoRis, President
NOEL R U S H ,
President
Citizens National Bank
Lincoln Bank a n d T r u s t C o m p a n y
Bedford, I n d i a n a
Louisville, K e n t u c k y
ALVIN A . VOIT,
Cashier and Director
T h e U n i o n National Bank
N e w Albany, I n d i a n a
President
University of Louisville
Louisville, K e n t u c k y
IRA F . WILCOX,
J O H N W . TAYLOR,
H . L E E C O O P E R , President
O h i o Valley National Bank
Henderson, K e n t u c k y
S M I T H BROADBENT, J R .
Farmer
Cadiz, Kentucky
O F F I C E R S
C. A. ScHACHT, Vice-President and Manager
F R E D B U R T O N , Assistant Manager
L. K. A R T H U R , Assistant
L. S. M O O R E , Assistant Manager
Manager
MEMPHIS BRANCH
DIRECTORS
Chairman
M . P. M O O R E , Owner
Circle M . R a n c h
Senatobia, Mississippi
W. P. K R E T S C H M A R , Chairman of
B E N L . R O S S , Chairman of Board
Board
Phillips National Bank
Commercial National Bank
Helena, Arkansas
Greenville, Mississippi
L E S L I E M . S T R A T T O N , J R . , President
NoRFLEET T U R N E R , President
Stratton-Warren Hardware Company
First National Bank
M e m p h i s , Tennessee
M e m p h i s , Tennessee
H . W . H I C K S , President
First National Bank
Jackson, Tennessee
HUGH M .
BRINKLEY
Farmer
Hughes, Arkansas
O F F I C E R S
P A U L E . SCHROEDER, Vice-President
and Manager
S. K. BELCHER, Assistant Manager
C. E. M A R T I N , Assistant
H . C. A N D E R S O N , Assistant Manager
Page 36
Manager
@FedFRASER