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ANNUAL REPORT
OF THE

FEDERAL RESERVE BANK
OF ST. LOUIS
FOR THE YEAR ENDED DECEMBER 31,1915




1 (; n
WASHINGTON
GOVERNMENT PRINTING OFFICE
1916




TABLE OF CONTENTS.
Organization of bank
Officers and employees
Directors and by-laws
Discount rates
Effect of discount rates on rates in general
Rediscounting
Clearing system
Investments
Federal reserve notes
Net deposits and cash reserve
State banks and trust companies
Statistics
Business and agricultural conditions
Work throughout the district
New quarters

.

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...

S
7
8
8
10
10
12
14
15
15
15
16
17
18
19

EXHIBITS.

Exhibit A.—By-laws
B.—Statement of commercial paper offered by member banks accepted
each week
C-—Chart showing commercial paper offered by member banks accepted each w^eek
D.—Chart shoTsdng number of items and total clearings each week...
E.—Statement showing operation of clearing system
F.—Chart showing investments held
G.—Chart showing total cash reserve and net deposits




3

19
2S5
28
24
25
25
26




ANNUAL REPORT OF FEDERAL RESERVE BANK OF ST. LOUIS.
WILLIAM M C C . M A R T I N ,

Chairman and Federal Reserve Agent.

On May 2, 1914, the reserve bank organization committee announced t h e boundaries of Federal reserve district No. 8.
On May 11, 1914, this committee designated five banks to execute t h e organization certificate, and on May 18 representatives of the banks met in the rooms of t h e
St. Louis Clearing House Association in t h e city of St. Louis and signed t h e organization certificate of t h e Federal Reserve Bank of St. Louis. Arkansas was represented b y t h e German National Bank, of Little Rock, Mr. J. D, Goldman, president,
and Mr. W. A. Hicks, cashier, signing t h e certificate for t h a t bank. Illinois was
represented b y t h e Ayers National Bank, of Jacksonville, Mr. M. F . Dunlap, president, and Mr. O. F . Buffe, cashier, signing t h e certificate. I n d i a n a was represented b y t h e Second National Bank, of New Albany, Mr. Earl S. Gwin, president,
and Mr. Geo. A. Newhouse, jr., cashier, signing for t h a t bank. K e n t u c k y was represented b y t h e National Bank of Kentucky, Louisville, Mr. Oscar Fenley, president,
and Mr. H . D. Ormsby, cashier, signing t h e certificate. Tennessee was represented
b y the First National Bank, of Memphis, Mr. J. A. Omberg, president, and Mr. C. Q.
Harris, cashier, signing for it.
The reserve b a n k organization committee h a d sent out preferential ballots in
accordance with t h e Federal Reserve Act to all member banks, a n d on August 10,
1914, it announced t h a t group No. 1 h a d elected Mr. Walker Hill, of St. Louis, as class
A director, and Mr. Murray Carleton, of St. Louis, as class B director; that group No. 2
had elected Mr. Frank O. Watts, of St. Louis, as class A director, and Mr. W. B . Plunkett, of Little Rock, Ark., as class B director; t h a t group No. 3 h a d elected Mr. Oscar
Fenley, of Louisville, K y . , as class A director, and Mr. Le R o y Percy, of Greenville,
Miss., as class B director.
On Septenaber 30, 1914, t h e Federal Reserve Board announced t h e appointment
of Mr.^William McC. Martin as Federal Reserve Agent a n d chairman of t h e board
of directors, and Mr. W. W. Smith as d e p u t y Federal Reserve Agent and vice chairman, and that these two gentlemen, together with Mr. Joha W. Boehne, of Evansville
I n d . , would be t h e three class C directors.
On Monday, October 5, 1914, t h e three class C directors of this b a n k met with t h e
Federal Reserve Board in its rooms in t h e Treasury Building a t Washington, D. C ,
to receive preliminary instructions and discuss t h e necessary steps for t h e organization of t h e bank. Upon t h e return from this meeting, on October 13, an informal
meeting of t h e board of directors was called b y t h e chairman of t h e board. This
had to be an informal meeting, as some of t h e directors h a d not h a d time fully to
qualify in accordance T\dth t h e provisions of t h e law, a r d was for t h e j^urpose of having t h e directors become acquainted with one another a n d talk over tentative plans
for the organization of t h e bank. All t h e directors i?s?^ere present, except Mr. Le Roy
Percy, of Greenville, Miss. At this meetifig t h e chairman read a telegram from
t h e secretary of t h e Federal Reserve Board, advising t h a t a conference h a d been
called for October 20 in Washington, D. C , and asking t h a t all t h e directors of each
5




6

A^SriSTTJAL R E P O R T OF F E D E R A L

RESERVE B A K K

OF S T .

LOUIS.

Federal Reserve Bank be present, if possible. There were selected, as t h e representatives of this b a n k , to b e present at t h e meeting of directors in Washington,
Mr. Osjar Fenley and Mr.. Frank O. Watts, class A directors, Mr. W. W. Smith, class
C director, and t h e chairman of t h e board. These gentlemen all attended t h e meeting in Washington, and took part in t h e discussions with other directors in t h e consideration of plans for t h e opening of t h e banks.
On October 23 t h e Federal Reserve Board called for t h e first installment of capital
stock, a p a y m e n t in gold equal to one-sixth of t h e total amount of capital stock allotted
to each bank, such remittance to b e made on or before November 2, 1914.
On October 25, 1914, t h e Secretxiry of t h e Treasury stated t h a t h e h a d determined
to announce t h e establishment of t h e Federal Reserve Banks in all t h e Federal
reserve districts on November 16, 1914. This announcement was made several
days before i t was possible to hold t h e first regular meeting of t h e board of directors
of this b a n k . Its first regular meeting was held on October 28, in t h e board room
of t h e Mississippi Valley Trust Co., St. Louis. All of t h e directors were present.
Anticipating an early opening of t h e bank, t h e chairman of the board had gone ahead
and ordered certain records, in order to facilitate matters, and at this meeting of t h e
board his actions were ratified. T h e directors also decided b y lot, on t h e i r terms of
office, in accordance with t h e provisions of t h e law, t h e result being as follows:
CLASS A .

Mr. F r a n k O. Watts, for a-term to expire one year from January I, 1915.
Mr. Oscar Fenley, for a term to expire two years from J a n u a r y 1, 1915.
Mr. Walker Hill, for a term to expire three years from J a n u a r y 1, 1915.
CLASS B ,

Mr. Murray Carleton, for a term to expire one year from J a n u a r y 1, 1915.
Mr. W. B . Plunkett, for a term to expire two years from J a n u a r y 1, 1915.
Mr. Le R o y Percy, for a term to expire three years from J a n u a r y 1, 1915.
CLASS C.

Mr. William M c C Martin, for a term to expire one year from J a n u a r y 1, 1915,
Mr. Walter W. Smith, for a term to expire two years from January 1, 1915.
Mr. John W. Boehne, for a term to expire three years from J a n u a r y 1, 1915.
A corporate seal was also adopted and by-laws decided on. A committee was
appointed to recommend t h e salaries of t h e governor of t h e b a n k , d e p u t y governor,
and cashier, and its report was adopted. T h e officers elected were as follows: H o n .
Rolla Wells, governor; Mr. William W. Hoxton, d e p u t y governor and secretary; Mr.
C. E . French, cashier.
This organization meeting of t h e board occurred on October 28, and t h e b a n k h a d
to open its doors for business on November 16, t h u s giving only a little over two ^veeks
in which to find quarters, get t h e necessary equipment, a n d become established.
Prior to this time there had been no officers of t h e bank, except t h e chairman of t h e
board and t h e vice chairman, and, in accordance with t h e call of t h e Federal Reserve
Board, gold was being received in p a y m e n t of t h e first installment of capital stock.
T h e chairman of t h e board accepted these payments as t h e y came, gave his recei]>t
for t h e m , and arranged that t h e y be deposited in a safe-deposit box in t h e Mississippi
Valley Trust Go. Access could b e h a d to this box only b y t h e Federal Reserve
Agent when accompanied b y Mr. W. W. Smith, his d e p u t y . At t h e first regular
meeting of t h e board t h e chairman reported what h e a n d his d e p u t y had done in
regard to accepting these payments, a n d their action was confirmed. As soon as



AlT]SrUAL R E P O R T

OF FJKDERAL R E S P : : R V E B A N K

OF S T . L O U I S .

7

officers were appointed for t h e b a n k and qualified, these capital stock payments
were turned over to them, and were found to be correct.
Beginning with October 1 t h e chairman received a great n u m b e r of applications
for positions with t h e b a n k . Wherever possible, t h e applicants were seen, a n d all
applications were filed in order of receipt, so t h a t when i t came to choosing t h e official
staff and t h e office force, every application was given d u e consideration.
A number of possible locations for t h e new bank had been looked over b y t h e
chairman and his d e p u t y , and these were reported to t h e first regular meeting of the
Doard of directors. At t h i s meeting t h e board appointed these two gentlemen and
Governor Wells as a committee to select temporary quarters and to purchase such
furniture a n d equipment as t h e b a n k required. At t h e first meeting of t h e executive
committee, held on November 4, this committee reported t h a t it had succeeded in
getting temporary quarters on t h e fourth floor of t h e Boatmen's Bank Building.
This was a new building, located on t h e northeast corner of Olive Street and Broadway,
and t h e fourth floor, fortunately, had not been completely finished, so quick work
was possible. I n order to get i t ready for occupancy on November 16 i t was necessary
that those supplying fixtures and those at work on t h e building be pushed day and
night, b u t , w^ith great effort, we succeeded i n getting everything ready, so t h a t on
t h e morning of November 16, 1914, this b a n k opened its doors for business.
The vaults were extremely inconveniently located a considerable distance from
our banking room, b u t t h e y were safe, t h e very best procurable, and we h a v e succeeded in operating with them. Visits to t h e vaults, due to their location, have consumed a considerable amount of t h e time of employees, b u t i t was a condition that
could not be remedied.
This b a n k w^as opened for business promptly on t h e day set, and h a d its own staff
of officers and employees, though t h e St. Louis banks had very kindly offered to lend
us men if needed.
O F F I C E R S AND

EMPLOYEES.

On the day of opening t h e staff numbered 6 officers and 17 other employees. For
a few days i t had t h e assistance of Mr, William 0. Tompkins, auditor of t h e Third
National Bank of St. Louis, who helped inaugurate t h e accounting system, b u t with
this exception, t h e b a n k was opened with its own employees.
Eight days after t h e opening of t h e b a n k there was started a limited clearing system,
and on December 4 t h e b a n k extended its clearing facilities and offered to collect
for member banks checks and drafts drawn on a n y Federal Reserve B a n k and checks
and drafts draw^n on all member banks of this district. I n order to have a sufficient
force to take care of t h e possible n u m b e r of items t h a t might come i n under this
enlargement of t h e clearing system, i t was necessary to increase t h e force, so that on
January 1, 1915, t h e b a n k h a d 6 officers and 40 employees.
Now that experience has shown t h e approximate n u m b e r of items to be expected
under given conditions, and t h e scope of other work necessary i n carrying on the
operations of t h e bank, i t has been possible to decrease t h e working force until at
t h e close of this year there were on the rolls 5 officers and 34 employees.
On January 6, 1915, t h e D e p u t y Federal Reserve Agent, Mr. Walter W. Smith,
resigned to take effect J a n u a r y 15, 1915, to become vice president of t h e Third National
Bank of St. Louis. This vacancy was not filled until J u n e 2, 1915, when t h e Federal
Reserve Board appointed as Mr. Smith's successor, Mr. T. C. Tupper, who had been
connected with t h e b a n k since i t s organization as manager of its credit department.
On J u l y 19, 1915, Mr. O. E . F r e n c h resigned as cashier, to t a k e effect August 7, 1915,
as h e h a d been appointed b y t h e Comptroller of t h e Currency as chief examiner of
Federal Reserve District No. 8. Since his resignation, t h e d e p u t y governor, Mr.
William W. Hoxton, has been t h e acting cashier.
29938°—16
2



8

ANNUAL

EKPORT OF FEDEEAI. RESERVE B A N K

OF S T .

LOUIS.

DIRECTORS AND BY-LAWS.

The by-laws adopted b y t h e board of directors of this b a n k follow very closely t h e
by-laws suggested at t h e conference of directors held in Washington prior to t h e opening of t h e bank. T h e y prescribe t h a t there shall be tw^o meetings of t h e board each
month, on t h e first and third Wednesdays, at 10 o'clock a. m., and if that day be a
holiday, on t h e second succeeding full business day. There h a v e been 28 meetings
of t h e board since t h e organization of t h e bank, wdth an average attendance of seven
directors.
This b a n k has four out-of-town directors, and attendance at t h e board meetings
aonsumes a considerable amount of their time. I t takes one of t h e directors a night
and a day to come from his home to St. Louis. I t has been reported t h a t there is a
rumor t h a t directors receive $5,000 a year for their services to this bank. I t seems
impossible t h a t this could be t h e general impression, b u t if anyone has such an erroneous idea, this is t h e place to correct it. The directors of this b a n k receive their
traveling expenses and t h e usual fee for attending meetings. T h e money compensation is not anything like adequate for t h e time these gentlemen give to t h e affairs
of t h e bank.
T h e proposed form of by-laws suggested an executive committee, composed of three
menabers of t h e board, b u t this was changed so that t h e by-laws of this b a n k call for
an executive committee consisting of t h e governor, the Federal Reserve Agent, and three
directors chosen from classes A and B, this committee to serve during t h e pleasure of
t h e board of directors or for terms fixed b y it. With t h e exception of t h e Federal
Reserve Agent, under these by-laws, directors of class C are not eligible as regular
members of t h e executive committee, though i t is provided t h a t t h e governor m a y
invite any other members of t h e board to sit with t h e executive committee and t h a t
such members have full right of membership during such meeting.
At t h e first meeting of t h e board there ^vere elected to serve on t h e executive committee, i n addition to t h e chairman of t h e board and t h e governor of t h e bank, Mr.
Walker Hill, Mr. F . O. Watts, and Mr. Murray Carleton, all of St. Louis. These
three elected members were to serve during t h e pleasure of t h e board for a term of
office expiring at t h e first regular meeting of t h e board of directors to be held i n
January, 1916.
As t h e by-laws were first passed, t h e executive committee was not given t h e right
to fix t h e discount rates, b u t later i t was found ad\dsable to amend them, so t h a t t h e
executive committee now has t h e power '' to fix t h e discount rates and change same
from t i m e to time, subject to review and determination b y t h e Federal Reserve
Board."
During t h e first few months of t h e b a n k ' s existence t h e executive com.mittee m e t
several times a week. I t is now holding two meetings a w^eek, one on Monday and one
on Thursday, at 10.30 o'clock a. m. U p to a n d including December 31, 1915, t h e r e
h a v e been 150 meetings of t h e executive committee.
Copy of t h e by-laws, as amended and in force at t h e writing of this report, is hereto
attached as E x h i b i t A.
REDISCOUNT RATES.

On November 16, 1914, the day of opening, this b a n k established a rediscount rate
of 6 per cent for all maturities of paper eligible for rediscount u n d e r t h e law. This
rate was Justified b y t h e conditions then existing. I n t h e latter p a r t of December and
early i n January money began to be more plentiful, and i t seemed advisable to offer
a preferential rate for notes of shorter maturity. Accordingly, on January 7, 1915, a
4 | p e r cent rate was announced for paper maturing within 30 days, a 5 per cent rate
for paper maturing within 60 days, a 5^ per c;ent rate for paper maturing within 90
days, and a 6 per cent rate on agricultural and live-stock loans running from 90 d a y s
to 6 months. Our rediscount rates h a v e been changed from t i m e to time, i n accordance with t h e conditions within t h e district. On J u n e 24 a rate of 3 per cent was




AISriSrUAL

KKPORT

OF

FEDERAL

RESERVE

BAKK

OF

ST.

LOXJJS.

9

established on paper maturing within 10 days. I t was thought that perhaps this rate
could b e availed of b y our large city banks i n order to meet their demands for very
short t i m e payments, such as, for instance, building u p their legal reserves, temporarily depleted, or t h e p a y m e n t of a heavy debit in the clearing house. Much to our
surprise, however, t h e first offering of this class of paper came from a country bank.
During t h e late winter and early spring member banks' reserves and deposits increased rapidly, and their discount rates consequently declined steadily. During t h e
early part of the year b a n k rates to customers in t h e larger cities were about 5 | to 6
per cent, and commercial paper of t h e best names was selling from 4h to 5 per cent. In
March the rate further declined, and 5 per cent was t h e usual b a n k rate, with commercial paper selling around 4 per cent. Commercial paper brokers generally complained of an inactive business. Banks looked forward to t h e period of crop movement, anticipating an increased demand for funds, and accordingly a higher rate of
interest. This, however, did not materialize, t h e demand for crop-moving purposes
being below normal, and discount rates remained at a low level. Such being t h e
case, on September 14 this b a n k reduced its rate on 90-day paper to 4 per cent, p u t t i n g
i t on a level with 30 and 60 day rates. On this same day t h e b a n k announced a 3 per
cent rate, available for " c o m m o d i t y p a p e r , " having a m a t u r i t y of not more than 90
days, provided the b a n k offering same could certify that the loan was originally made
at a rate not exceeding 6 per cent. This was designed to h e l p t h e carrying of cotton,
wheat, and commodities of a like kind. Also, on September 14, i n order to encourage
the use i n business of " t r a d e acceptances," t h e bank established a rate on this class
of paper one-half per cent lower than its 30-day rate, t h e rate being 3 | per cent on
maturities of not more than 90 days. So far t h e banks h a v e not availed themselves,
to any great extent, of a n y of the preferential rates—that is, t h e 3 per cent rate on
10-day paper, the 3^ per cent rate on trade acceptances, and t h e 3 per cent commoditypaper rate.
I n October of this year t h e demand was somewhat more active, especially i n t h e
southern parts of t h e district, b u t this was not sufficient to cause a n y marked increase
in rates. At t h e end of October t h e rates were still below normal for this t i m e of t h e
year, the b a n k rate ranging from 4jV to 5 per cent, and commercial paper of t h e best
names was scarce even a t a rate of 3 J to 4 per cent for maturities u p to six months.
T h e board of directors of this b a n k has realized from t h e beginning t h a t t h e fixing
of rediscount rates was perhaps t h e most responsible of its functions. I n t h e face of
earnings not u p to our expectation and -with a desire for increased business there was
a temptation to lower t h e rates. However, t h e board thoroughly appreciated t h e fact
t h a t if rates ^vere placed a t so lo\sr a level as to encourage member banks to allow
their customers to borrow too m u c h money and extend too m u c h , t h e result would be
an overexpansion in business and the possibility of a dangerous situation. T h e policy
of t h e board has been to establish a rate which would enable t h e member banks to
meet every legitimate demand of business i n their respective localities at a reasonable
rate to customers and a t t h e same t i m e not stimulate loans to a point of dangerous
expansion. Since the b a n k was established there have been seven changes in t h e rediscount rates, t h e dates on which these changes h a v e occurred and t h e rates for t h e
different maturities being as follows:
10 d a y s .

N o v . 16, 1914
D e c . 10, 1914
D e c . 21, 1914
J a n . 7,1915
F e b . 3,1915
A p r . 22, 1915
J u n e 24, 1915
S e p t . 14, 1915

Per

30 d a y s .

cent. Per

3
3

60 d a y s .

cent. Fer
6
54
6
4|
4
4
4
4

90 d a y s . 6 m o n t h s .

cent. Per
6
6
5i
5
4
4
4
4

cent. Per
6
6
6
5i
4i
4|
4|
4

Sept. 14, 1915, trade acceptances, 90 days, 3J per cent; commodity paper, 90 days, 3 per cent.




cent.
6
6
6
6

?
5
5

10

A N N U A L HKPORT OF F E D E R A L

REStlRVE B A N K

OF S T .

LOUIS,

E F F E C T OF F E D E R A L R E S E R V E R A T E S ON R A T E S IN GENERAL..

Since t h e establishment of t h e Federal Reserve Bank i t is interesting to e x a m i n e
the rates which banks have been paying for borrowed money and also t h e rates w h i c h
banks have been granting their customers. From reports of member b a n k s m a d e to
the Comptroller of t h e Currency t h e following is noted: On May 1, 1915, t h e average
rate t h a t banks paid for borrowed money w^as 5.24 per cent; on J u n e 23, 5.22 per c e n t ;
on September 2, 5.05 per cent; and on November 10, 4.96 per cent. T h i s shows a
steady decrease i n t h e rate at which banks borrowed from their correspondents.
During all this period t h e y could h a v e borrowed from t h e Federal Reserve B a n k a t a
less rate.
There has also been a decrease i n t h e rate which member banks charge their customers. T h e 30-day average rate to customers on May 1, 1915, i n this district was 7.31
p e r cent; on J u n e 23, 6.94 per cent; on September 2, 7.06 per cent; and on November
10, 6.87 per cent. T h e decrease i n rates to customers has been greater i n two or three
of t h e large cities than i n t h e smaller towns. T h e country banks, as a rule, h a v e
made little decrease in their rates of interest to customers.
REDISCOUNTING .

On November 18, two days after t h e opening of this bank, we received our first
offering of paper, amounting to $1,000,000. Our n e x t rediscounts were received on
November 23, and totaled $21,000. On November 27 t h e n e x t offerings were received, aggregating $52,000. T h e following day we received an offering a m o u n t i n g to
$4,224.95, and on November 30 one amounting to $500,000.
From t h e opening of the b a n k to t h e end of business on Friday, December 4, 1914,
this bank had received a total amount of rediscounts of $1,654,507.76. I n fact, two
days after t h e opening of t h e b a n k more rediscounts were on h a n d t h a n h a v e been
received during any one week since t h e n . T h e rediscounts received during t h e week
ending Friday, December 11, 1914, amounted to $71,500. Since t h a t t i m e t h e rediscounts h a v e increased ^ d t h more or less regularity from w^eek to week.
Attached hereto, as E x h i b i t B, is a statement of commercial paper offered b y member banks and accepted each week, showing total of each m a t u r i t y and total of all
maturities to and including December 31, 1915. Also attached, as E x h i b i t C, is a
chart showing t h e same facts in graphic form.
T h e total rediscounts accepted b y the b a n k from its opening on November 16, 1914,
to December 31, 1915, amounted to $8,231,082.92. Of tliis amount, $2,363,330.16, or
28.71 per cent, was of 30-day m a t u r i t y ; $2,821,311.81, or 34.28 per cent, was of 60-day
m a t u r i t y ; $2,431,693.76, or 29.54 per cent, was of 90-day maturity; and $614,747.19,
or 7-47 per cent, was of paper maturing within 6 months. Nearly two-thirds of t h e
paper accepted b y the b a n k was of the 60 and 90 day class. There were 3,828 notes
accepted during this period, and of this n u m b e r 118 were for amounts less t h a n $100
each.
From a s t u d y of t h e n u m b e r of member banks offering rediscounts from t h e differe n t States and cities of the district i t m a y be said t h a t t h e smaller banks, rather t h a n
t h e larger ones, have shown a tendency to use our service. T h e b a n k s i n St. Louis
und Louisville have not h a d occasion to avail themselves, to any great extent, of t h e
rediscount privilege. Below is given a table, showing n u m b e r of member banks
offering rediscounts from each State each m o n t h from t h e opening of t h e b a n k , t h e
total n u m b e r of banks offering rediscounts from t h e whole district each m o n t h , t h e
n u m b e r and percentage of different banks offering rediscounts from each State, and
the n u m b e r and percentage offering rediscounts from t h e whole district since t h e
bank's opening:



AKI^XJAL

REPORT

OF F E D E R A L

RESERVE B A N K

OF ST.

1915

1914

,0

55 bJb

S t a t e or c i t y .

»4

1

1
o

B

o

CD

5=^

<

l-s

b4

0
0

>

S

CO

53T3!:S £:

7
11
1
6

7
11
3
7

6
11
4
7

24
42
10
14

4
5
13
8
1
8 "4"

8
19
4
10

62
157
61
61
8
18
72
8
20

131

467

1
1

4
7
2
4

4
3
3
3

5
15
3
4

5
13
2
2

9
18
1
3

7
16
2
4

9
9
1
1

11
16

Mississippi
Missoui'i
St. Louis
Tennessee

1
2
4

5

3

1
8

1
7

2
8

3
5

5
9

3
1

3
1
4

4
13

3
10

6

2

3

5

5

6

7

7

7

Total

6

21

24

24

32

34

44

44

34

52

54

45

Indiana

0
0

a
P

3
5
1
4

13
11
2
"4' 4

.

<» c3
«C
O

0

0

54

11

LOUIS.

23 M t> CO

CM

45

38.7
26.7
16.4
22.9
44.4
23.3
SCO

50.0
28.0

From November 16, 1914, to January 1, 1916, t h e n u m b e r of different member banks
accommodated through t h e discount of paper was 131. T h e n u m b e r of different
banks accommodated through t h e discount of paper from J a n u a r y 1, 1915, to t h e end
of t h e calendar year was 129.
I t will be noted t h a t a little over one-fourth of our member banks have availed
themselves of the rediscount privilege, and this n u m b e r is steadily increasing from
m o n t h to month. We have made regular customers of these banks, t h e majority of
t h e m making frequent offerings. I t is gratifying to find this steady normal increase,
as i t shows t h a t as our member banks become more familiar with the system t h e y are
taking advantage of its facilities. This increased use of t h e rediscount privilege of
t h e Federal Keserve B a n k is also shown from an analysis of t h e reports to t h e Comptroller of the Currency, to wit: On March 4 this bank held approximately 18 per cent
of the total loans of t h e member banks i n this district; on May 1, 18.4 per cent; on
J u n e 23, 17.98 per cent; on September 2, 27.03 per cent; and on November 10, 25.17
per cent.
T h e following table gives t h e approximate percentage of rediscounts of t h e Federal
Reserve Bank of St. Louis as compared with t h e total borrowings of member banks
for t h e district and for each State within t h e district, according to t h e reports made to
t h e Comptroller of t h e Currency under calls of March 4, May 1, J u n e 23, September 2,
and November 10, 1915:
D a t e of call.
M a r . 4, 1915
M a y 1, 1915
J u n e 23, 1915
S e p t . 2,1915
N o v . 10, 1915

District.
18.40
18.40
17.98
27.03
25.17

Arkansas.
12.8
8.9
20.6
23.8
17.9

Illinois.

Indiana.

13.7
16.3
18.9
27.0
29.9

30.9
33.6
27.9
34.5
15.5

Kentucky.
5.4
8.2
3.6
6.7
16.0

Mississippi.

Missouri.

8.3
3.5
25.2
19.6

10.3
10.2
15.7
22.7
17.7

Tennessee.
^7.3
54.0
33.9
40.9
48.3

I t is diflficult to draw definite conclusions from this statement, as conditions vary
considerably in t h e different sections of t h e district. From t h e above, however, i t
would appear t h a t t h e member banks in Tennessee have realized t h e possibilities of
t h e Federal Reserve Act to a greater extent t h a n those of a n y other State. I n d i a n a
also has an excellent record i n this respect. T h e above figures seem to indicate a
growing appreciation on t h e part of bankers in Arkansas, Illinois, and Missouri- T h e
offerings from K e n t u c k y , however, have been spasmodic and rather disappointing.
A further examination of t h e reports to t h e Comptroller of t h e Currency shows that,
i n spite of t h e fact t h a t member banks could rediscount with t h e Federal Reserve
Bank, i n which they are stockholders, the banks i n this district have placed approximately one-third of their total loans w i t h banks located outside of t h e district. On



12

ANNUAL

REPORT

OF

FEDERAL

RESERVE

BANK

OF

ST.

T.OUIS.

March 4 t h e borrowings of member banks from banks outside of t h e district amounted
approximately to $1,275,000; on May 1, approximately $1,070,000; on J u n e 23, approximately $1,103,000; on September 2, approximately $1,637,000; and on November
10, approximately $2,746,000.
If t h e borrowing banks of this district had placed their loans which t h e y made outside of t h e district w i t h t h e Federal Reserve Bank of St. Louis, i t would h a v e enabled
their Federal Reserve Bank, in which t h e y own stock, to h a v e earned considerably
more money and would have not t a k e n any business away from t h e banks w i t h i n t h e
district. I t appears from t h e reports to t h e Comptroller t h a t few, if any, of these
loans were m a d e at a less rate of discount t h a n the rate offered b y this b a n k . T h e
average m a t u r i t y of paper rediscounted w i t h us is probably i n excess of 60 days. If
i t be supposed t h a t these member banks had rediscounted with us t h e $7,830,000 of loans
which t h e y placed with banks outside of t h e distric^t, a t our 60-day rate—4 per cent—
this b a n k would have received an additional revenue of approximately $52,200, w^hich
would h a v e helped our showing considerably.
T h e following figures, t a k e n from t h e reports of member banks to t h e Comptroller
of t h e Currency, are interesting:
T h e reports of September 2 showed t h a t loans of member banks w^ere divided as
follows:
W i t h banks within t h e district
$1, 580, 000
With banks outside t h e district
1, 630, 000
W i t h Federal Reserve Bank
1,190, 000
Total

4, 400, 000

Of this total, 27 per cent w^as borrowed from t h e Federal Reserve Bank.
T h e reports of November 10 showed t h a t loans of member banks were divided
as foUow^s:
With banks within t h e district
With banks outside t h e district
With Federal Reserve Bank

i

$2, 450, 000
2, 745, 000
1, 750, 000

Total
6, 945, 000
Of t h i s total, t h e Federal Reserve Bank held 25 per cent. I n brief, t h e total loan
of member banks w i t h i n this district increased $2,545,000 from September 2 to November 10. I n this same period t h e rediscounts w^ith t h e Federal Reserve Bank increased
only $560,000, or about 22 per cent of t h e increase.
CliEARINGS.

Eight days after the opening, on November 24, 1914, this b^nk inaugurated its
•clearing system b y t h e collection for its member banks of checks and drafts on other
Federal Reserve Banks a n d checks and drafts drawn b y member banks of t h i s district on member banks located in Louisville and St. Louis.
On December 4, 1914, it extended t h e clearing facilities a n d offered to collect for
member banks checks and drafts drawn on all member banks i n this district a n d
checks and drafts drawn on other Federal Reserve Banks. All items h a n d l e d were
credited to t h e banks from which received, on t h e day of receipt, a n d charged to
the drawee b a n k on t h e same day. I t soon developed t h a t banks i n reserve a n d
central reserve cities, located outside of District No. 8, were sending i n a great n u m b e r
of items on member banks to be cleared at par, while member banks were not able
to build u p their balances, so depleted b y checks on their correspondents located
outside of t h e district. Therefore, on December 18, i n order to protect m e m b e r
banks, t h e b a n k was compelled to refuse to accept for collection or credit checks or
drafts drawn on member banks of this district t h a t bore t h e indorsement of banks
in a n y reserve or central reserve city located outside of District No. 8. I t was forced




AJSrisTUAL

REPORT

OF

FEDERAL

RESERVE

BANK

OF

ST.

I.OUIS.

13

t o t a k e t h i s s t e p , as t h e r e w a s p r a c t i c a l l y n o d e v e l o p m e n t of t h e c h e c k c l e a r i n g s y s t e m
o u t s i d e of t h i s d i s t r i c t .
T h e c l e a r i n g s y s t e m is b a s e d o n t h e a s s u m p t i o n t h a t t h e i n t e n t of t h e F e d e r a l
R e s e r v e A c t is t h a t e v e r y m e m b e r b a n k b e r e q u i r e d t o c o v e r a t p a r all c h e c k s a n d
drafts d r a w n u p o n i t r6i;eived from t h e F e d e r a l R e s e r v e B a n k of w h i c h said b a n k
is a m e m b e r . T h e r e f o r e t h e c o l l e c t i o n s y s t e m , as first s t a r t e d , w a s m a n d a t o r y u p o n
m e m b e r b a n k s . H o w e v e r , w h e n 10 of t h e o t h e r F e d e r a l R e s e r v e B a n k s s t a r t e d
collection s y s t e m s o n t h e v o l u n t a r y b a s i s , t h i s b a n k felt t h a t i t s h o u l d p u t i t s m e m b e r
b a n k s on t h e s a m e b a s i s as t h e m e m b e r b a n k s of o t h e r d i s t r i c t s . C o n s e q u e n t l y ,
o n A p r i l 12, 1915, t h e b a n k notified t h e m e m b e r b a n k s t h a t o n a n d after M a y 17, 1915,
t h e y w o u l d h a v e t h e o p t i o n of r e m a i n i n g i n t h e c l e a r i n g s y s t e m a n d h a v i n g t h e i r
c u s t o m e r s ' c h e c k s c l e a r e d t h r o u g h u s a t p a r or of w i t h d r a w i n g from t h e clearing s y s t e m
a n d h a v i n g t h e i r c u s t o m e r s ' c h e c k s h a n d l e d t h r o u g h t h e old c h a n n e l s . O n t h a t d a t e
t h e r e w e r e 462 m e m b e r b a n k s i n D i s t r i c t N o . 8, a n d on M a y 17, 1915, w h e n t h e v o l u n t a r y s y s t e m w e n t i n t o effect, a b o u t 20 p e r c e n t of our m e m b e r b a n k s w i t h d r e w .
S i n c e t h a t t i m e t h e r e h a v e b e e n 12 w i t h d r a w a l s a n d 9 a d d i t i o n s t o t h e c l e a r i n g
s y s t e m . T h e fact t h a t t h e r e h a v e b e e n a n y a d d i t i o n s i n d i c a t e s t h a t t h e s y s t e m as
o p e r a t e d b y t h e b a n k h a s a t t r a c t e d s o m e b a n k s after t h e y m o r e fully u n d e r s t o o d i t ,
a n d t h e fact t h a t so few h a v e w i t h d r a w n i n d i c a t e s t h a t a m a j o r i t y of t h e m e m b e r
banks i n this district consider t h e system practical.
T h i s b a n k from t h e b e g i n n i n g h a s o p e r a t e d on a n i m m e d i a t e c r e d i t a n d i m m e d i a t e
d e b i t basis, a n d therefore, on T u e s d a y , N o v e m b e r 16, 1915, t h e S t . L o u i s Clearing
H o u s e Association a m e n d e d i t s r u l e s a n d r e g u l a t i o n s affecting c o l l e c t i o n c h a r g e s ,
t o b e i n effect o n a n d after D e c e m b e r 1, 1915, as follows:
" O n all s u c h i t e m s p a y a b l e or c o l l e c t i b l e a t p a r i n S t . L o u i s , w h e r e i m m e d i a t e
c r e d i t i s h a d , t h e c h a r g e s h a l l b e d i s c r e t i o n a r y w i t h e a c h b a n k or t r u s t c o m p a n y .
I t e m s c o l l e c t i b l e a t p a r i n St, L o u i s , w h e r e i m m e d i a t e c r e d i t is h a d , s h a l l n o t b e
r e g a r d e d as finally p a i d u n t i l r e c e i v e d a n d p a i d b y b a n k s u p o n w h i c h d r a w n , a n d
recourse m a y b e h a d u p o n t h e c l e a r i n g b a n k on s u c h i t e m s as m a y b e d i s h o n o r e d ,
or for losses o c c u r r i n g i n t h e m a i l s , p r o v i d e d s u c h c l a i m s a r e m a d e i n d u e course.*'
W i t h t h i s a m e n d m e n t i n effect S t . L o u i s b u s i n e s s m e n w i l l b e a b l e t o r e c e i v e
p a r for t h e i r c h e c k s .
P r i o r t o D e c e m b e r 4, 1914, t h e d a t e w h e n t h e c l e a r i n g s y s t e m w a s e n l a r g e d , t h e
t r a n s i t d e p a r t m e n t w e n t o v e r t h e s i t u a t i o n v e r y carefully, a n d c a m e t o t h e conc l u s i o n t h a t o n t h e o p e n i n g d a y i t s h o u l d b e p r e p a r e d t o h a n d l e a t least 20,000 i t e m s
a d a y . H o w e v e r , t h e a v e r a g e n u m b e r of i t e m s r e c e i v e d d u r i n g t h e first m o n t h of
t h e b a n k ' s o p e r a t i o n d i d n o t e x c e e d 5,000 p e r d a y . I t h a s felt t h a t i t w a s unsafe,
h o w e v e r , t o o p e n t h e b a n k u n l e s s Tv^e w e r e p r e p a r e d for t h e p o s s i b i l i t i e s .
B e l o w i s g i v e n a s t a t e m e n t s h o w i n g , b y m o n t h s , t h e n u m b e r s of i t e m s a n d a m o u n t s
of clearings of t h e F e d e r a l R e s e r v e B a n k of S t . L o u i s from t h e i n a u g u r a t i o n of i t s
c l e a r i n g s y s t e m t o D e c e m b e r 3 1 , 1915:
N u m b e r of
items.

1 In



8
115,024
136,695
127, 227
154, 630
154, 070
134,452
124, 028
129,141
141,850
150,851
182, 692
183,036
202,876

$14,312.24
24,611,473.90
28,300,204.08
33, 716,002. 70
51,190,674.05
56, 519,995. 37
47,048, 300. 31
48, 784, 820. 71
37,460, 280. 27
38,091,504.87
51, 331, 290. 75
63,532,030.66
77,371,144.41
84,559,718. 67

1,936,580

N o v . 24 t o N o v . 30, 1914.
D e c e m b e r , 1914
J a n u a r y , 1915
F e b r u a r y , 1915
M a r c h , 1915
A p r i l , 1915
M a y , 19151
J u n e , 1915
July,1915
A u g u s t , 1915
S e p t e m b e r , 1915
O c t o b e r , 1915
N o v e m b e r , 1915
D e c e r a b e r , 1915

Total

Amount.

642,531,752.99

May about 20 per cent of our member banks withdrew from the clearing system.

14

AKNUAL REPORT OF FEOERAI. RESERVE BAJSTK OF ST. LOUIS.

Attached hereto is E x h i b i t D , giving this information in graphic form.
I t v/ill b e noted that this statement shows a steady increase for each month u p to
May, 1915, when t h e effect of t h e withdrawal of 97 banks from our clearing system
becomes apparent, and a decrease is shown. Beginning with J u l y , however, b o t h
t h e n u m b e r of items and t h e amount show a steady increase.
A full clearing system has been in operation over a year. T h e b a n k has n e v e r
attempted to keep down operating expenses at t h e cost of transit efficiency, a n d our
method in operation, as the records show, has never resulted in dangerous overdrafts.
From an operating standpoint it m a y b e said t h a t it is satisfactory.
Gradually exchange charges on checks are being eliminated in this district, a n d
t h e public is getting a direct benefit from t h e Federal reserve system. I t has been
reported t h a t one large firm in t h e city of St. Louis has had to spend a n n u a l l y i n
exchange charges approximately $40,000. Due to t h e Federal reserve system, this
firm and others like it will b e saved at least t h e greater part of this expense. T h e
banks in this district have been in t h e h a b i t of charging from 5 cents per letter, regardless of total, to one-fourth of 1 per cent of t h e total for remitting to other banks to
cover items drawn on themselves or banks in their own town or city. T h e majority
of t h e member banks belonging to our clearing system which were in t h e habit of
charging exchange oa remittances, as above mentioned, now^ handle same at par. I n
t h e majority of the larger cities in this district it has been t h e custom of t h e b a n k s to
charge exchange on all items deposited with t h e m for collection b y local customers.
T h e charges vary from one-twentieth of 1 per cent to one-fifth of 1 per cent. These
charges, as a rule, are made in accordance with t h e rules of the local clearing house.
St. Louis is t h e only city in our district that we know of where t h e clearing-house rules
h a v e been amended so t h a t banks are no longer obliged to charge on items t h a t are
collectible at par and on which immediate credit can b e obtained. I t is estimated
that t h e saving to local customers of St. Louis banks on items drawn, on members of
our collection system will average about $500 a day. This saving will b e augmented
b y additions to t h e membership of our clearing system and b y nonmember b a n k s obt.aining from their correspondents fajilities similar to those extended b y this b a n k t o
its members through its collection system.
Attached hereto as E x h i b i t E is a statement showing average n u m b e r of i t e m s a n d
amount per day for each month since J a n u a r y 1, 1915, cleared on member b a n k s outside of St. Louis, cleared on member banks in St. Louis, sent to other Federal Reserve
Banks, and overdrafts of member banks.
INVESTMENTS.

t i n d e r t h e law this b a n k has been limited in its investments to t h e purchase of
United States bonds, warrants based on taxation having maturities of not more t h a n
six months, and to acceptances based on t h e importation or exportation of goods.
This b a n k now holds $970,000 par value of United States Government bonds. I n
view of t h e fact that each year after this year t h e b a n k will h a v e to take its pro rata
share of t h e $25,000,000 of United States bonds authorized to b e purchased u n d e r t h e
Federal Reserve Act, and that bonds purchased during this year could not b e county
as a part of such pro rata share, and in view of t h e unsettled condition abroad ai
other factors, t h e board of directors of this b a n k did not deem it wise to tie u p more
funds in United States Government bonds.
T h e method of financing political subdivisions b y short-time warrants has not b e e n
m u c h in use in this district, and it has been difficult to get t h e kind of w^arrants acceptable b y us under t h e law. E v e r y effort has been made to encourage financing of
this character, and t h e services of counsel, Mr. James G. McConkey, h a v e been offered
to a n y community where h e was needed to suggest t h e form of warrants and h e l p in
their issuance. A n u m b e r of conferences in regard to this t y p e of financing h a v e
been held and considerable correspondence has occurred, and it is hoped t h a t here-




AI^NUAL REPORT

OF F E D E R A l . R E S E R V E B A N K

OF S T .

LOUIS.

15

after t h e district will furnish more warrants of t h e kind that can b e used. T h e total
amount of eligible Tv^arrants purchased b y this b a n k u p to and including December
31, 1915, was $2,264,827.87. Very few, if any, b a n k acceptances based on t h e importation or exportation of goods, during this year at least, h a v e been obtainable in
this district. T h e total amount of such acceptances received u p to and i n c l u d i n g
December 31, 1915, w^as $1,800,564.57. T h e great majority of warrants that thia
bank has been able to purchase, and all of t h e bank acceptances, h a v e come through
t h e Federal Reserve Banks of New York, Boston, and Atlanta. T h e chief source
of revenue at all times has been paper rediscounted for our member banks. Attached
hereto as E x h i b i t F is a chart showing in graphic form t h e total investments held b y
this b a n k each Friday from December 11, 1914, to December 3, 1915. This shows
commercial paper rediscounted with this bank, b a n k acceptances bought. United
States bonds bought, and warrants bought.
I t will be noted t h a t t h e revenue of t h e b a n k shows a steady increase from month
to month. Current expenses h a v e been substantially reduced during t h e last few
months, and in November, 1915, this b a n k earned over its operating expenses $962.22.^
FEDERAL RESERVE

NOTES.

Since the opening of t h e b a n k four shipments of Federal Reserve notes h a v e been
received b y t h e Federal Reserve Agent from t h e Comptroller of t h e Currency, aggregating $9,600,000.
On December 1, 1914, t h e Federal Reserve Agent made t h e first delivery of Federal Reserve notes to t h e b a n k in exchange for collateral deposited with him. T h e
second delivery of notes was made on December 14, 1914.
At the present time there is outstanding $8,950,000 in Federal Reserve notes, on
which t h e b a n k has eliminated its liability b y t h e deposit of gold with t h e Federal Reserve Agent to t h e amount of $8,950,000. Of this amount $3,950,000 is held in t h e
vaults of t h e Federal Reserve Agent at St. Louis and $5,000,000 is to his credit with
t h e Federal Reserve Board in Washington.
NET

D E P O S I T S ANO C A S H R E S E R V E .

Attached hereto as E x h i b i t G is a chart showing in graphic form t h e total cash
reserve and net deposits of this b a n k at t h e close ot business each Friday from November 20, 1914, to December 3, 1915.
,
STATE B A N K S AND T R U S T C O M P A N I E S .

In district No. 8 there are 2,574 State banks and trust companies. Of this n u m b e r
985 State banks and trust companies have sufficient capital to qualify for membership in t h e Federal Reserve system; 1,588 of them have not sufficient capital t a
make t h e m eligible and would h a v e to increase i t to become members. T h e following statement shows, b y States, t h e n u m b e r of State banks and trust companies t h a t
are eligible and t h e n u m b e r not eligible.
State hanks and trust companies eligible for membership in Federal Reserve System..
State.




Capital.

Surplus.

177
174
89
102
85
303
55

Arkansas
Illinois
Indiana
Kentucky
Mississippi
Missouri
Tfirmpssee. . . . . .
Total

Number.

-

$10,521,617
9,314,300
3,378,000
8,799,850
4, 738,500
32,047,100
4, 772,460

$3,957,580
4,691,890
1,762,160
4,156,360
2,263,390
16,963,450
2,213,900

985

73,571,827

36,008,730

16

AKNUAL REPORT OF FRDERAI. RESERVE

BA:NK

OF BT. LOTJIS.

State hanks and trust companies not eligible for membership in Federal Reserve System,
Number.

State.

Capital.

Surplus.

251
128
42
201
72
799
95

«3,719,130
1,995,525
1,310,000
3,773,320
1,104,3^0
13,470,700
1,518,398

$1,639,400
815,310
456,550
1,705,250
412,680
18,426,120
928,23©

1,588

Arkansas..
Illinois.
Indiana
Kentucky.
Mississippi.
Missouri
Tennessee.
Total

26,891,423

24,383,540

T h e Mercantile Trust Co., of St. Louis, is t h e only State institution in this district
t h a t is a member of t h e Federal reserve system. I t came in while t h e reserve b a n k
organization committee was organizing t h e bank and before t h e Federal Reserve Bank
of St. Louis was opened.
There h a v e been a number of inquiries from State banks and trust companies in
different parts of the district asking for information, with a view of becoming members of t h e Federal reserve system.
STATISTICS.

An effort has been made b y t h e Federal Reserve Agent to collect reliable information regarding business conditions in this district. I t was thought important t h a t
information be obtained at first h a n d from both t h e borrower, or business m a n ' s point
of view, and t h e lender, or t h e bank's point of view. So far y^e have been arriving
at t h e lender's point of view from t h e copies of t h e statements sent us, rendered on call
of t h e Comptroller of t h e Currency. This is supplemented b y personal interviews
with officers of both State and national banks. These personal interviews are written
u p in t h e form of a report two or three times a month. I n order to get t h e borrower's
vie^v^oint, we h a v e compiled a list of about 125 firms, in nine cities within this district.
These firms are all of the highest rating, and are wholesalers and jobbers dealing in what
may be called " t h e necessities of life." I t was felt t h a t these firms were depending
on, and therefore familiar with, t h e local retailers in t h e smaller cities throughout t h e
district, and t h a t reports on their business \y;^ould be an accurate i n d e x of actual business conditions. Street railway companies in t h e larger cities of t h e district furnish ua
statistics in regard to earnings and n u m b e r of passengers carried. From other sources
we get information in regard to failures and t h e usual statistics i n regard to building,
car movements, etc. T h e heartiest cooperation has been given b y all those asked for
information b y this bank, and we are extremely grateful for t h e assistance given us.
District No. 8 is largely a farming district, and it is necessary t h a t we keep closely in
touch with agricultural conditions. We receive t h e reports of t h e Bureau of Crop
Estimates at Washington; reports of t h e Department of Agriculture; reports from t h e
United States Weather Bureau stations in this district, and reports from various State
boards i n t h e district. These reports are carefully analyzed, and are t h e n supplemented b y personal interviews with men closely in touch with agricultural development.
T h e rediscount records of t h e bank are presented graphically on charts. From t h e m
we are able to see what effect, if any, t h e rediscount rate of this b a n k has on t h e rediscounts, which maturities are most frequently offered, what sections of t h e district are
availing themselves of t h e facilities offered b y t h e b a n k and to what extent.
I n district No. 8, statistics fall naturally under three heads, as follows: (1) manufacturing and selling, applying more particularly to St. Louis, Louisville, Memphis,
Little Rock, and t h e larger centers; (2) agriculture and livestock, applying to a great
part of t h e district, and (3) banking conditions, which apply to all of t h e district.




ANl^TJAJ.

REPORT

OF F E D E R A L

RESERVE

BANK

OF S T . LOUTS.

B U S I N E S S AND AGRICULTURAL CONDITIONS D U R I N G THE

17

YEAR.

When this bank opened in November, 1914, the emergency currency, issued b y
t h e banks under t h e Aldrich-Vreela.nd Act, to a great extent had been retired. I n
other ^words, this district had partially recovered from the first shock caused b y the
declaration of war in Europe t h e previous August. There w^as still a general feeling
of uneasiness among all classes of business men, for they were fearful of possible complications in our foreign policy, and w^ere uncertain as to t h e crop of 1915. However,
due in no small measure to the establishment of the Federal Reserve Bank of St.
Louis, in this district t h e first quarter of 1915 showed some improvement in general
business conditions as compared to t h e last quarter of 1914. During this first quarter
national banks held reserves well over their legal requirements, due, in a great measure, to t h e reduced reserve requirements under the Federal Reserve Act, and also,
to some extent, to a lack of demand for funds for business purposes. At that time
the average b a n k rate to customers in t h e large cities was approximately 5 per cent,
and commercial paper w^as freely quoted around 4 per cent. T h e tendency of the
money market was toward lower rates.
During t h e spring months general business showed some improvement. This was
indicated b y t h e increased demand for labor and b y t h e decrease in t h e number of
commercial failures. Money rates were low and banks, contrary to t h e usual custom,
were in the market for commercial paper maturing after t h e crop-moving season.
T h e shipments of wholesalers were below t h e average for t h e period, b u t collections
were nearly normal and showed the effect of the enforced liquidation during t h e preceding six months. T h e demand for commodities available for export w^as beginning
to be felt and was responsible, in part, for t h e improvement noted. T h e live stock and
wheat markets showed t h e effect of this demand more keenly t h a n any of t h e other
branches of industry, and this marked activity continued throughout t h e spring and
early summer.
Climatic conditions during t h a t period were in t h e main favorable. T h e rains in
J u n e did some damage to t h e wheat crop, b u t even so, t h e various reports indicated
t h a t i t w^as considerably above t h e 5-year average. T h e temperature was below
t h e normal, generally, b u t crops grew rapidly and seasonable weather from t h e n on
seemed t h e only thing necessary to insure a successful harvest.
Commencing t h e latter part of J u n e , this bank had inquired into t h e cotton situation throughout t h e district, gathered data in regard to warehouses, given such help
as i t could to communities t h a t needed proper warehouse facilities, and prepared forms
of bonds and warehouse receipts for use when needed- We advised our member
banks that, if necessary, we would gladly send someone from this ofiice to help t h e m
get their local cotton situation into proper shape. We made i t very plain t h a t we were
i n position to take care of demands arising out of cotton, and t h a t if it were correctly
handled there was no reason w h y there should be forced sale of cotton a t distress
prices in any place in this district. This developed a general feeling of confidence
i n t h e situation, and we believe had a great effect throughout t h e district. Jobbing
houses generally reported an increase in sales during August and this, in turn, affected
the business of manufacturers and those who deal in raw materials.
As summer merged into fall, a steady improvement was noted. To a great extent
the Federal Reserve Banks had restored confidence, and this was strengthened b y
reports on crop conditions. Southern States had made an earnest effort to get away
from t h e one crop standard, and were raising, in m a n y instances, several times the
usual amount of wheat and corn. However, t h e cool, d a m p summer had retarded t h e
harvesting of t h e crops and even in September there was no really active demand for
money from country communities. Bank rates for customers remained fixed at
approximately 4^ per cent to 5 per cent, and commercial paper rates were quoted at
from 3^ per cent to 4 per cent for maturities u p to six months.




18

ANNUAL

BEPORT

OF F E D E R A L

RESERVE B A N K

OF S T .

LOUIS.

October, November, and December showed further gains in all industries, and t h e s e
gains should go far toward overcoming t h e loss incurred last T^inter. Business
houses, generally speaking, are busy. Country merchants are b u y i n g freely, a n d
indications point to a rising market in m a n y of t h e standard commodities.
Failures showed a decrease both i n n u m b e r and total liabilities each quarter of t h e
year of 1915, and this is an indication of t h e more favorable conditions now existing.
T h e year has been a peculiar one, in t h a t the large city banks h a v e not had t h e d e m a n d
for money from their correspondents t h e y anticipated, nor has t h e Federal Reserve
Bank rediscounted for its member banks t h e amount of loans that, judging from statistics of previous needs in this district, i t had reason to believe i t would b e called on to
rediscount. T h e Federal Beserve Bank, however, has been of great benefit to District
No. 8, for i t has restored confidence.
There has been a steady and normal improvement throughout t h e year, bountiful
crops h a v e been harvested, and it can be said t h a t t h e year closes with a n approach
to a period of prosperity u n k n o w n for some t i m e .
W O R K T H R O U G H O U T THE

DISTRICT.

This b a n k had no sooner become established t h a n i t became apparent t h a t t h e chief
problem before t h e officers was to get t h e member banks to realize not only t h e facilities at their disposal, b u t t h e ease with which t h e y could b e used. I n some ^v^ay or
other m a n y of t h e banks in this district got t h e idea t h a t t h e y had no paper eligible
for rediscount, whereas t h e fact was t h a t , i n a majority of instances, t h e greater p a r t
of t h e paper in their portfolios was eligible. Member banks seemed also to h a v e
gotten t h e idea t h a t there was a great deal of " r e d t a p e " connected with t h e b a n k
and t h a t i t was very difficult to do business w^ith it.
E v e r y effort was made b y t h e officers of this b a n k to have member banks clearly
understand the facts as t h e y exist. T h e y h a v e tried to explain t h a t t h e b a n k is operated b y practical men and t h a t our effort has ever been to have satisfied customers.
There is no " r e d t a p e " connected with its operations. I t s ofiicers h a v e been careful
to explain that the Federal Reserve Act did not establish new principles, b u t , as i t
were, systematized good banking standards, and t h e y h a v e suggested to State b a n k s
that, -whether or not t h e y ever came into t h e system, i t was good banking policy for t h e m
to conduct their business and get their bill cases into shape t h e same as requested of
member banks. I t is gratifying to b e able to state t h a t a n u m b e r of State i n s t i t u t i o n s
have written for forms of statements and are beginning to use them.
This b a n k has never accepted a rediscount t h a t was not accompanied either b y
the statement of t h e maker of t h e note or a statement of t h e b a n k offering i t , giving,
with some particularity, t h e approximate figures covering what t h e customer owned
and what he owed. T h e request has been reasonable, for t h e b a n k only wants to know
what every good banker certainly knows before h e grants t h e loan, whether h e gets
the information through conversation or gets i t on a statement. At first some m e m b e r
banks felt t h a t i t would b e impossible to get statements. I t is a great pleasure t o
report that, on t h e whole, member banks h a v e not had the difficulty t h e y a n t i c i p a t e d ,
and in several instances have been able to render a real service to their customers b y
giving t h e m advice when, with t h e statement before them, t h e y realized t h e actual
-condition t h e n existing. At least a majority of our member banks realize t h a t t h e y
have paper eligible for rediscount with this bank, do not t h i n k i t is hard to do business w i t h it, or t h a t there is a n y so-called " r e d t a p e , " and are adopting t h e p l a n of
receiving statements from their customers, realizing t h a t this is a benefit both to t h e
customers and themselves. This result has not been achieved without a great deal
of hard w^ork on t h e part of t h e officers of this bank, and there is still considerable work
to b e done before all of the banks are brought i n t o t h a t close i n t i m a t e touch w i t h t h i s
b a n k t h a t should exist.



AlTISrUAI

REPORT

OF F E D E K A I . RESERVE B A N K

OF S T . L O U I S .

19

On February 20, 1915, a circular letter was issued, covering eligible paper i n detail
a n d giving specific examples of various kinds of notes t h a t are eligible for rediscount.
We found this circular effective, b u t our experience has been t h a t t h e best work is
accomplished when we can talk with our member bankers. T h e chairman of t h e
board has made addresses i n 22 different cities throughout this district and, i n some
places, has spoken several times. T h e D e p u t y Federal Reserve Agent has made
several trips throughout our territory, going into t h e cotton sections to h e l p them get
their paper in acceptable shape, and w^herever requested to do so, has gone into the
b a n k and examined its paper, suggesting t h a t which is eligible and t h a t which is not.
Other of&cers of the bank have also made trips from time to t i m e . I t gives us pleasure
to state t h a t our member banks have shown a most friendly feeling of cooperation,
a n d we are grateful to all of them.
NJBW Q U A R T E R S .

As stated in t h e early part of this report, this bank was compelled to get temporary
quarters a t its opening with inconvenient vault facilities. On October 8, 1915, it
closed a lease for quarters in what is now known as t h e New Bank of Commerce Building, on t h e northeast corner of Broadway and P i n e Streets, just one block south of
our present location. We took possession of these new quarters during t h e last week
i n December, 1915, and t h e name of t h e building has b e e n changed to t h e Federal
Reserve Bank Building. This gives us a light, commodious, and most convenient
banking room on t h e second floor, accessible to t h e street without t h e use of elevators,
with ample and satisfactory vaults.
CONCLUSION.

This bank, during its first year of operation, has not made money, though i t showed
approximately a $1,000 gain over operating expenses for t h e month of November,
1915. However, i t is felt t h a t a m u c h higher service to t h e district t h a n t h e making
of money has been rendered. I t has stabilized conditions and made i t possible for
a n y customer i n t h e district to get money at a reasonable rate; has operated a clearing
system w^hich has resulted in t h e elimination of exchange charges on a large majority
of the checks drawn on member banks i n t h e district and t h e consequent advantage
to business men of district No. 8; has materially helped some banks in communities
suffering from three years of continuous drouth, and at all times has been i n position
to give any assistance needed, no matter what t h e emergency, to any deserving bank
in the district.
EXHIBIT

A.

BY-LAWS OF THE F E D E R A L R E S E R V E
ARTICLE

B A X K OV S T . L O U I S .

I.—Directors.

SECTION 1. Quorum.—^A majority of t h e directors shall constitute a quorum for the
transaction of business, b u t less t h a n a quorum may adjourn from time to time until a
quorum is i n attendance.
SEC. 2. Vacancies.—As soon as practicable after t h e occurrence of any vacancy in
t h e membership of t h e board, t h e chairman of t h e board shall take such steps as may
be necessary to cause such vacancy to be filled i n t h e manner provided b y law.
SEC. 3. Meetings.—^There shall b e a regular meeting of t h e board on t h e first and
third Wednesdays of each month, a t 10 o'clock a. m., or if t h a t d a y b e a holiday, on
t h e second succeeding full business day. T h e chairman of the board m a y call a special
meeting at a n y time, and shall do so upon the written request of any three directors
or of t h e governor. Notice of regular and special meetings may b e given b y mail or
b y telegraph. If given b y mall, such notice shall b e mailed at least five days before
t h e date of t h e meeting. If given b y telegraph, such notice shall be dispatched at



20

AKNLTAL R E P O R T

OF F E D E R A I . R E S E R V E BAlsTK O F S T .

LOUIS.

least two daj^s before the date of t h e meeting. Notice of a n y meeting may b e dispensed w i t h if each of the directors shall i n writing waive such notice.
S E C . 4, Powers.—The business of this bank shall b e conducted u n d e r t h e supervision and control of its board of directors, subject to t h e supervision vested b y law i n
t h e Federal Keserve Board. T h e board of directors shall appoint t h e officers and fix
their compensation.
T h e board m a y appoint legal counsel for t h e bank, define his duties, and fi^x his
compensation.
S E C . 5. Special committees.—Special business of t h e b a n k m a y b e referred from t i m e
to t i m e to special committees, which shall exercise such powers as t h e board m a y
delegate to them.
SEC. 6. Order of business.—The board may from time to time m a k e such regulations
as to order of business as m a y seem to it desirable.
ARTICLE

II.

SECTION 1, How constituted.—There
shall be an executive committee consisting of
t h e governor, t h e Federal Reserve Agent, and three directors chosen from classes
A or B ; t h e member or members of t h e committee chosen b y t h e board shall serve
during t h e pleasure of the board, or for terms fixed b y it. T h e governor shall h a v e
authority to i n v i t e a n y other members of t h e board of directors to sit with t h e executive committee at a n y regular or special meeting, such member or members to h a v e
full rights of membership during such meeting or meetings. Not less than three members of t h e committee shall constitute a quorum for t h e transaction of business, and
action b y t h e committee shall b e u p o n t h e vote of a majority of those present at a n y
meeting of t h e committee.
T h e committee shall h a v e power to fix t h e t i m e and place of holding regular or
special meetings, and the method of giving notice thereof.
Minutes of all meetings of t h e executive committee shall b e kept b y t h e secretary,
a n d such minutes, or digests thereof, shall b e submitted to t h e members of t h e board
of directors at its n e x t succeeding meeting. Such minutes shall be read to the meeting if required b y any member of the board.
S E C 2. .Powers.—Subject to t h e supervision and control of t h e board of directors, as
set forth in Article I, section 4, t h e executive committee shall have t h e following
powers:
(a) To pass upon all commercial paper submitted for discount.
(6) To initiate and conduct open-market transactions.
(c) To fix t h e discount rates and change same from time to time, subject to review^
a n d determination b y t h e Federal Reserve Board.
(d) To b u y and sell securities.
(e) To apply for and provide for t h e security of such Federal Reserve notes as m a y ,
i n t h e judgment of t h e committee or of t h e board, b e necessary for t h e general requirem e n t s of t h e bank.
(/) To employ or to delegate to officers of the bank authority to employ clerks and
other subordinates, and to define their duties and to fix their compensation.
(g) To approve bonds furnished b y t h e officers and employees of t h e bank, and to
provide for their custody.
(h) I n general, to conduct t h e business of t h e b a n k subject to t h e supervision a n d
control of the board of directors.
ARTICLE

III.—Officers.

SECTION. J. T h e board of directors shall appoint a governor, a d e p u t y governor, a
secretary, and a cashier, and shall ha^^^e j^ower to aj^j^oint such other officers as t h e board
m a y from time to time determine to be necessary and appropriate for the conduct of
t h e business of t h e bank. T h e offices of deputj^ governor, secretary, and cashier, or
a n y two of them, m a y b e held b y one person, i n t h e discretion of t h e board. T h e
officers chosen b y t h e board shall hold office during the pleasure of t h e board.
S E C 2. Federal Reserve Agent.—The Federal Reserve Agent, as chairman of t h e
board, shall preside a t meetings thereof. Copies of all reports and statements m a d e
to t h e Federal Reserve Board shall be filed with t h e Federal Reserve Agent.
S E C 3. Deputy Federal Reserve Agcnt.-^In t h e absence or disability of t h e Federal
Reserve Agent his powers shall b e exercised and his duties performed b y t h e D e p u t y
Federal Reserve Agent, who inay perform such other services as shall be prescribed
b y t h e board of directors not inconsistent with his duties as provided b y law.
S E C 4. The governor.—Subject to t h e supervision and control of t h e board of directors, t h e governor shall h a v e general chai-ge and control of t h e business and affairs of



AN^lSrUAl. R E P O R T

OF F E D E R A l . R E S E R V E B A N K

OF S T . LOUTS.

21

t h e bank, and h e shall b e the chairman of t h e executive committee. H e shall have
pow^er to m a k e a n y and all transfers of securities or other property of t h e b a n k which
may b e authorized to b e sold or transferred b y t h e executive committee or b y t h e
board. T h e governor shall h a v e power to prescribe t h e duties of all subordinate
officers and agents of t h e b a n k where such duties are not specifically prescribed b y
law or b y the board of directors or b y t h e by-laws. T h e governor m a y suspend or
remove a n y employee of t h e bank.
SEC. 5. The deputy governor.—In case of t h e absence or disability of t h e governor
his powers shall b e exercised and his duties discharged b y t h e d e p u t y governor, and
in case of t h e absence or disability of t h e d e p u t y governor t h e board shall appoint
one of the other directors governor pro tem. T h e duties of t h e d e p u t y governor shall
otherwise be such as m a y b e prescribed b y t h e board of directors or b y t h e governor.
I n case t h e board shall d e e m that t h e business of the bank requires t h e appointment
of one or more assistant d e p u t y governors, i t shall have authority to appoint such
assistant d e p u t y governor or governors, and shall prescribe and define his or their
duties.
SEC. 6. The secretary.—The secretary shall keep t h e minutes of all meetings of the
board and of all committees thereof. H e shall h a v e custody of t h e seal of t h e bank,
with power to affix same to certificates of stock of t h e bank, and b y authority of t h e
board or t h e executive committee, to such other instruments as may from time to
time be required. T h e board of directors may, in t h e absence or disability of the
secretary, or upon other occasion where in t h e discretion of the board greater convenience can be attained, appoint a secretary pro tempore or empower one or more
officers to affix t h e seal of t h e bank to certificates of stock or other instruments. The
secretary shall perform such other duties as m a y from time to time b e prescribed
b y t h e board of directors, t h e executive committee, or t h e governor.
T h e cashier and at least one other officer designated b y t h e board of directors shall
have joint custody of t h e inactive reserve of the bank and bonds ^purchased b y the
bank for investment. All other moneys and investments shall be in the custody of
the cashier. H e shall perform such other duties as may be assigned to him from time
to time b y the executive committee, the board of directors or the governor. I n the
event of t h e absence or inability of the cashier to act, then the governor or the executive committee shall have power to appoint some officer to act in his stead.
ARTICLE

IV.—Certificates of stock.

SECTION 1. Signature.—All
certificates of stock, or of x>ayment of or on account of
stock subscriptions, shall b e signed b y t h e governor or a d e p u t y governor, and the
secretary or cashier, or such other officers as may be prescribed b y the board, and such
certificates shall bear the corporate seal.
ARTICLE

V.

SECTION 1. Business hours.—The bank shall be open for business from 10 o'clock
a. m. to 3 o'clock p . m. on each day except Sundays or days or parts of days' established as legal holidays.
The bank shall be open for business from 10 o'clock a. m. to 12 o'clock noon on
Saturdays.
ARTICLE VI.—Amendments.

These by-laws may be amended at a n y regular meeting of the board b y a majority
vote of the entire board: Provided, however, T h a t a copy of such amendment shall
have been mailed to each member at least 10 days prior to such meeting.




22

ANNUAL

REPORT

OF

FEDERAL
EXHIBIT

Commercial

paper
offered
maturity
arid total

W e e k ending-

Dec.

4.
IL
18.
24.
31.

Jan.

8.
15.
22.
29.
5.
12.
19.
26.
5.
12.
19.
26.
2.
9.
16.
23.
30.
7.
14.
21.
284.
11.
1825.
29.
15.
23.
30.
61320273.
101724.
1.
8.
15.
22317142130.
7.
142131-

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.
#
Nov.

Dec.
Dec.
Dec.
Dec.

1914.

1915.

RESERVE

BANK

week,
showing
December
31,

30 d a y s .

60 d a y s .

90 d a y s .

Dollars.
1,007,729.83
43,000.00
14,295.76
65,591.60
3,957.75

Dollars.
551,582.82
3,000. 00
9,008. 58
24,195.10
5, 213. 05

Dollars.
95,195.11
23,000.00
34,927.96
8,100.00
17,228. 26

281,331.46
4,000.00
20,502.00
9,046. 78
7,667.49
16,551. 03

6,552. 57
62,587. 43
12, 093. 23
92, 650. 39
10,0C3. 78
52, 652. 38
26,000.00
11,872.38
8, 299. 71
7,239. 08
16,213. 27
15,593.83
27,888. 91
9, 860.00
36,038. 88
24,177.00
31,052.42
23,792.19
20,355. 83
30,271.94
30,892. 22
10,562.15
9,148.42
33,004.90
9,987.44
50,744.45
18,980.54
13,690.13
24,072.09
66,014.78
43,005.12
15,644.00
48,347.52
112, 204. 80
47, 235. 55
11,030.77
61,976.91
155,448. 27
55, 377. 73
27,217. 64
100,718.36
39,256.13
205,492.58
95,684.38
116,385.52
54,775.70
25.436.25
77,989. 92
51,014.26
66,637.17
21,481.34

27,500. 00
14, 613. 81
5,639.19
51,208.95
46,617.73
88, 851.33
12, 742. 50
22,348. 82
54,487.50
26.916.37
16,380.86
11,245.90
54,625.94
11,550.00
10, 839. 95
34,919.69
28, 243. 45
34,922.48
23,295.58
25,223.10
45,518.00
12, 290. 56
19,755. 00
43,584.68
30,185. 89
78, 207. 47
31,097.15
49,189.12
64,624.53
34,746.71
42,466.96
40,374.47
65,356.12
44,424.20
42, 240. 74
38,378.47
49,988.28
75.613.99
76,019.37
71,587.83
93,641.99
36,482. 80
143,050.24
105,804.11
50,609.27
64,568.39
28,996.34
38,168. 79
30,052.39
56, 637. 20
47,408.16

T o t a l f r o m N o v . 16, 1914, t o a n d inc l u d i n g D e c . 31, 1915
2,363,330.16 2,821,311.81 2,431,693.76
P e r c e n t a g e of e a c h m a t u r i t y .




28.71

ST.

LOUIS.

B .

by member
banks
accepted
each
of all m,aturities
to ana including

1,872. 52
5,775.50
5,036. 26
16; 372. 03
13,144,00
12, 713. 21
3,200.00
3, 848. 70
4,638.22
14,272.99
18,056.12
8,800. 50
4,877.00
8,062. 69
900.00
151. 75
13,739. 83
15,399.71
22,197. 93
3,729.41
39,367.56
6,940.00
11,885.14
11,597.36
8.399.50
11,022.27
10,976.44
7. 221. 76
4,133.00
10,241.35
48,916.33
18, 522. 33
15,845.14
40,358.54
32, 598. 76
47.061.61
32,405. 71
20, 287. 62
163,458.89
42.988.53
38,329. 69
18,461.17
25,185. 45
46,764.54

OF

34.28

29.54

total
of
1915.

6 months.

each

T o t a l of
weelc.

Dollars.

Dollars.
11,654,507.76
2,500. 00
71,500.00
63,232.30
5,000.00
97,886.70
26,399. 06
6,000. 00
4,161.45

15, 008. 87
10,299. 32
1,946.11
4,143.60
6,003. 00
15,105. 52
3,986.80
5,520.40
611. 67
9,069. 37
16,456.36
11,507.88
32,610.38
25,160.72
1,309.82
46,455.38
5,999.48
2,550. 00
21,362.80
28, 899. 65
18,205.19
24,953.49
979. 50
28,460. 86
8,809. 04
15, 782. 50
12,257. 24
4,612.88
10,715. 00
33,894. 69
2,355.00
7,186.50
2, 890. 00
4,207.75
9,642. SO
3,027. 90
11,096.50
9,255. 01
13,779.16
4,188. 83
25,967.45
24,517.78
17,379. 04
800. 00
6,000.00
32,214.01

321,384. 03
85,362. 69
38,834.42
167,914.99
74,648.32
160,000.85
42,886.10
42.096.72
83,668.23
43,178. 61
54,486.56
39,983. 73
95.739.73
24,610.00
59,796. 90
80,191. 27
85, 076. 74
112,381.17
77,612.63
61,681.86
130,928. 29
29,752.19
31,605.17
111,692.30
84,472.99
169,355.04
78, 760. 59
103,226.31
124,097.48
121.455.67
112,851.94
76,675.21
129,338.79
178,320. 44
130, 592.14
55, 897. 24
129,393.04
282, 868. 59
154,127.18
124,293.51
237, 746. 79
119,434.19
404,759.44
217,673.36
191,471.24
308, 770. 43
121,938.90
171,867.44
100,327. 82
154, 459. 88
147,868. 05

614,747.19 8,231,082.92
7.47

1 T h e s e figures i n c l u d e r e d i s c o u n t s a c c e p t e d from o p e n i n g of b a n k t o D e c . 4, 1914.

100

ANNUAL

REPORT

OF F E D E R A L

RESERVE B A N K

EXHIBIT

OF S T .

LOUIS.

23

C.

Commercial paper offered by member banks and accepted each week, showing total of
each maturity and total of all maturities from DecemJber 4, 1914, to November SO, 1915
{in
thousands).

i
650

1

P >P a" J ta d
ta t u ri
P^IP
Pj «P gr Jb LaPs»P er > ta :.uriT I t al

F

625
600

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425 J ^
400 J \jL_;
375 J I 1

1

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325

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250 f
225. j _ 3-J
200 i
t
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150

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500
475
450
425
400
575
350
325
300
275
250
226
200
175
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125
100
76
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Millions

M w ^J ro w w w ^i rs T^ t^ w w M w M w w M t;i i»^ i|^ »f>-»{i 4^ >^ t> 4^rfs-»f^en 01 cj» en 01 w tfl 0101 w o
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Thousands
Nov. \
Dec.
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TeV.

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ANl^JJAJ.

REPOKT OF FEDERAL RESERVE B A N K
EXHIBIT

OF ST. LOIJIS.

25

E.

Statement showing operation of clearing system.

1915.
January
February
March
April
May
June
,
July
AugXTSt

September...
October
November
December

I t e m s cleared on
member banks
in S t . I v o u i s
(daily average).

Items sent to other
Federal Reserve
B a n k s (dailv average).

Items.

Month.

I t e m s cleared on
member banks
outside S t . Louis
(daily average).

Items.

Items.

Amount.

Amount.

364 $375,762.12
374
497,602.17
386 638,475. 96
411 879, 70D. 91
446 695,408. 65
391 723,405.44
485 601,424.69
510 529,795.24
490 830, 585. 01
556 936,615. 83
7 0 3 1,225,952.55
597 1,267,707.28

4,832 $554,809. 98
5,128 571,319.15
5,302 571,969. 01
5,648 712,415.94
4,800 577,644.63
4,205 510,754.15
4,319 541,618.58
4,772 565,486. 85
5,318 658,191. 78
5,795 845,598.72
6,314 885,306. 78
6,893 920,862.23

O v e r d r a f t s of
member
banks
(daily average)Accounts.

Amoiuit.

23 $157,875. 87
29 396,991.83
3 8 685,505. 88
82 668,682.94
131 608, 878. 72
174 642,225. 82
1 6 1 297,736. 73
173 369,775. 77
221 564,474.83
213 665,171. 24
299 983,586.42
310 1,071,027.35

32
30
31
39
26
19
15
21
26
31
25
22

Amount.

$80,497.38
81,341. 82
49,874.70
108,197. 26
74,237.55
42,580.23
43,793. 72
37,466. 48
.56.609.54
113,801.86
73,966.47
80,077.07

Prior to May 17 t h e system was mandatory; since t h a t t i m e i t has been voluntary.
Approximately 80 p e r cent of our member banks belong t o t h e clearing system,
about 40 per cent of which use us actively for collecting such i t e m s as t h e y handle
t h a t are eligible for collection through us.
T h e £gures given above are daily averages.

EXHIBIT

F.

Statement of investments held hy Federal Reserve Bank of St. Louis, each Friday,
December 11, 1914, to December S, 1915 {in thousands).

from

1 1

eooo

- U. S .

- l - l —1— 1—1~

Bonds

6000
55O0
5000
4500

H IMt1 11111

6500
5000
4500
4000
5500
3000
2500
2000
1500
1000

-[ \M e; .w

^
y

r-

500




*•

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4000
3500
3000
2S00
200O
1500
1000
500

26

AJsr:NUAi.

KEPORT

OF

FEDKRAL

RKSFKVK

BANK

OF

ST.

LOUIS.

JExHIBIT G .

Total cash reserve and net deposits each Friday, from, Novermber 20, 1914, to December S,
1915 {in thousands).
,
T<iiBi Ca u\. UesfX're
M>t _1 e 30 9 it l L 1 5 , ooo
14, 500
14. 000
I S . 500
13, 000
12, 500
1 2 , OOO
11, 500
11, 000
10. 500
10, 000
9. 500
9, 000
8. 500
S, 0 0 0
7, 500
7 ,0 0 0

,
/ \
/

,V
1

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.500
.000
,500
,000
,500
,000
,500
,000
,500
,000
,500
,000
, 50O
,000
,500
,000
,500
,000
,50O
.000

.

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6, 000
5, 500
5. 000




^

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