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ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF ST. LOUIS FOR THE YEAR ENDED DECEMBER 31,1934 ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF ST. LOUIS MISSOURI \ILLINOIS )|NDI ARKANSAS /MISSISSIPPI FOR THE YEAR ENDED DECEMBER 31,1934 LETTER OF TRANSMITTAL FEDERAL RESERVE BANK OF ST. LOUIS St. Louis, February 28, 1935. Gentlemen: I have the honor to transmit herewith the annual report of the Federal Reserve Bank of St. Louis, covering the year ended December 31, 1934. Respectfully, JOHN S. WOOD, Chairman of the Board and Federal Reserve Agent. FEDERAL RESERVE BOARD, Washington, D. C. —2— TABLE OF CONTENTS BUSINESS CONDITIONS Page 5 6 6 Industry and trade Agriculture Banking FINANCIAL RESULTS Income and expenditures Assets and liabilities Reserve position 7 7 7 VOLUME OF OPERATIONS Industrial Loan Act Discounts, commitments, etc Rates Investments Currency Note circulation Cash items Noncash items Transfers of funds Safekeeping Fiscal agency Gold settlement fund 8 8 9 10 10 10 11 11 11 12 12 12 RELATIONS WITH BANKS Membership Examinations and reports Applications Publications Other services Visits 12 13 13 13 14 14 INTERNAL ORGANIZATION Conferences Personnel 14 15 EXHIBITS Map of district Title page Summary of major operations 4 Chart showing movement of deposits, etc., of reporting member banks 16 Comparative statement of earnings and expenses 17 Chart showing movement of discounts and investments 18 Comparative statement of condition 19 Roster of directors, officers, etc 20 —3— VOLUME OF MAJOR OPERATIONS OF FEDERAL RESERVE BANK OF ST. LOUIS INCLUDING ITS BRANCHES During 1934 Pieces Handled Aggregate Amounts Currency received and counted 111,701,000 $ 422,218,000 Coin received and counted 106,248,000 13,226,000 45,695,000 9,100,205,000 Collection items handled: U. S. Govt. coupons paid 1,188,000 19,390,000 Other collection items.... 415,000 377,385,000 305,000 666,236,000 307,000 150,589,000 68,000 2,686,467,000 Securities, notes, etc., received for custody 144,000 Coupons clipped from securities in custody 123,000 Not incl. custodies for R. F. C. or collateral of members securing Govt. deposits. Rediscounts, advances and commitments 625 17,330,029 Bills purchased in open market for own account 201 1,205,492 7,957,604 70,222,150 Checks (cash items) handled New issues, redemptions, and exchanges, as fiscal agent: U. S. obligations—for Treas. Dept. Other securities — for Farm Credit Administration and H. O. L. C Transfers of funds Federal Reserve notes issued by Federal Reserve Agent to bank Details regarding these and other activities are given in text of report. —4 BUSINESS CONDITIONS IN FEDERAL RESERVE DISTRICT No. 8 Industry and Trade. — In virtually all lines, trade and industry in this district showed well defined improvement in 1934, as compared with the two previous years. The course of recovery was irregular, not only with reference to periods of the year, but to the several geographical locations and categories of activity. Taken by and large, however, notable strides were made in the direction of working out of conditions existing during the depression era. A chronological review of the year discloses a continuance of the upward swing in general business during the first quarter, which characterized the final months of 1933. In April a slight slowing in the tempo was in evidence, being manifest in smaller gains over totals of the preceding year. During May, June and July the trend was decidedly downward, the cause for which was the record spring and summer drought affecting a large part of the district. Fortunately, the dry spell was confined chiefly to the northern stretches of the district, southern sections being relatively little affected. The drouth was definitely broken in late August and early September, and thereafter improvement in business and sentiment continued with practically no interruption. Restoration of confidence and augmented purchasing power were reflected in freer buying of commodities, particularly of consumer goods. Merchants were disposed to build up inventories, previously allowed to fall to relatively low levels, and generally a higher grade of goods was taken than during the preceding several years. Throughout the year a high efficiency existed in collections, with losses due to weak accounts showing a notable decrease. Commercial failures during 1934 were smaller numerically by 56 per cent than in 1933, while liabilities involved decreased 69 per cent. Output of iron and steel products, tonnage of bituminous coal lifted, sales of automobiles, total volume of retail and wholesale distribution, output of lead and zinc, and statistics covering other important activities indicated measurable gains over the preceding twelve months. In certain wholesaling classifications, notably dry goods, hardware, drugs and chemicals, and electrical supplies, the volume of sales, according to interests reporting to this bank, was the largest since 1931. — 5— Agriculture. — Despite the handicap of the severest spring and summer drouth of record, and reduced acreages of the main crops, 1934 proved more favorable in point of financial returns to Eighth District farmers than either of the two preceding years. This fact was ascribable to the sharply higher prices of a majority of productions and to the substantial sums paid to producers by the Government in connection with its curtailment and relief programs. In its December report the U. S. Department of Agriculture estimated the total farm value of the sixty-four principal crops in states of this district at $963,934,000, an increase of 27 per cent and 82 per cent, respectively, over the 1933 and 1932 estimates. Rental and benefit payments to December 31 by the Agricultural Adjustment Administration totaled $102,686,000. Through practice of economies, diversification and intensive cultivation, farmers produced the year's crops at an unusually low cost. Toward the end of the period, demand for and prices of farm lands, particularly in the south, developed well defined improvement. In virtually all sections farmers were disposed to liquidate their indebtedness, a considerable part of which represented obligations of long standing. Banking. — In contradistinction to the several years immediately preceding, bank failures in the Eighth District during 1934 were negligible. The improvement in the banking situation was reflected in the strong position of the licensed banks at end of the year. However, the period was characterized by slack demand for credit from commercial, industrial and agricultural sources, also, a scarcity of suitable investments for surplus funds. Deposits, reserves and total investments pursued an irregularly upward course during the twelve months, and in the case of deposits and reserves a new all-time high record was established in late December. Interest rates fell to the lowest levels in recent times. The following changes in the principal items of reporting member banks in leading cities depict trends during the year: Average of total loans for the 52 report dates was 7.4 per cent smaller than in 1933, whereas average total investments increased by 26.1 per cent. The average of demand deposits was 24.3 per cent larger and average time deposits 2.5 per cent greater than the year before. Borrowings from the Federal Reserve bank by the reporting members averaged very little in 1934. Movement of these items is shown in chart on page 16. Federal efforts, notably activities of the Federal Deposit Insurance Corporation, figured conspicuously in restoration of confidence in the banking structure and return to banks of hoarded funds. OPERATIONS OF FEDERAL RESERVE BANK OF ST. LOUIS Including Branches at Little Rock, Louisville and Memphis. FINANCIAL RESULTS Income and Expenditures. — In 1934 gross earnings were $1,824,453, which compares with $1,629,136 in 1933. Current expenses amounted to $1,455,534, as against $1,473,311 in 1933. After payment of dividends, allowances for depreciation, etc., there was a deficit for the year of $101,013, which amount was transferred from surplus. In 1933 the sum of $337,409 was withdrawn from surplus. A detailed comparative statement of earnings and expenses is given on page 17. Assets and Liabilities.—As of December 31, 1934, total resources were $323,203,000, as against $297,566,000 at the end of 1933. Between December 31, 1933, and the same date in 1934, holdings of paper discounted for member banks decreased from $1,415,000 to $3,000, and bills bought in the open market, from $4,693,000 to $116,000, while investments in United States Government securities remained stationary at $93,200,000. Total reserves increased from $174,337,000 to $206,277,000. On the liabilities side, there was a decrease from $144,307,000 to $142,880,000 in Federal Reserve notes in circulation. The liability on outstanding Federal Reserve bank notes was reduced from $8,067,000 to nothing, by deposit of lawful money with the Treasury Department for their redemption. Total deposits advanced from $109,858,000 to $151,150,000. Paid-in capital increased from $3,944,000 to $4,088,000. Surplus provided in Section 7 of Federal Reserve Act receded from $9,849,000 to $4,655,000, mainly on account of purchase of stock of the Federal Deposit Insurance Corporation. The surplus arising under Section 13b on December 31, 1934, was $382,000. A comparative statement of condition of this bank appears on page 19. The movement of the principal asset items is shown by chart on page 18. Reserve Position. — The ratio of total reserves to combined Federal Reserve note and deposit liabilities on December 31, 1934, —7— was 70.2 per cent, which compares with 68.6 per cent on the same date in 1933. The high point for the year, 71.9 per cent, was reached on March 12, and the minimum, 64.9 per cent, was recorded on June 30. VOLUME OF OPERATIONS Industrial Loan Act.— On June 19, 1934, Section 13 (b) was added to the Federal Reserve Act, authorizing the reserve banks to aid in providing working captial for established industrial or commercial businesses, for periods of not exceeding five years, as follows: (1) To discount for or purchase from any bank or other financing institution, obligations entered into for the purpose of obtaining such working capital; (2) To make loans or advances to banks and other financing institutions on the security of such obligations; (3) To make direct loans to or purchase obligations of such businesses, in exceptional circumstances, when it appears that requisite financial assistance cannot be obtained on a reasonable basis from the usual sources; (4) To execute commitments with respect to the foregoing. The law provides for the Federal Reserve Bank assuming not to exceed 80 per cent of any loss that may be sustained on any such obligation acquired from a bank or other financing institution. On June 30 this bank mailed to all member banks, nonmember banks, and Chambers of Commerce, in the district, a circular calling attention to the above provisions, explaining their purposes, and furnishing the regulations in connection therewith. Subsequently, statements were given to the press, conferences with bankers were held, various organizations were addressed, additional circulars were issued, and our field representative discussed the facility with the banks that he visited. In accordance with the new section, an Industrial Advisory Committee, whose names appear elsewhere in this report, was appointed on July 9 to consider applications for such loans, purchases and commitments, and to make recommendations to this bank in regard thereto. The Committee meets twice a week and performs a valued service. Discounts, Commitments, Etc. — While this district is largely agricultural, numerous inquiries were received relative to loans, purchases and commitments under Section 13 (b), and it was necessary to augment the staff in order to handle the correspondence, interviews, applications, etc. Up to close of the year, 275 applications for such accommodations were received. From enactment of the amendment, it was the policy of this bank to solicit the coopera tion of commercial banks in connection with working capital loans. It encouraged the banks to make and hold such loans under commitments from this bank, or to participate with this bank in joint advances. By obtaining a commitment, a bank can make a loan for a period of not exceeding five years, be assured that it can turn the asset into cash at any time it desires within the terms of the commitment, and receive the benefit of the entire interest thereon until the commitment is exercised. As a consequence, to the end of the year, a total of $1,348,800 commitments were executed to financing institutions, and $474,000 of working capital loans were made direct by this bank to businesses, in most cases with financing institutions advancing additional funds jointly. Some of the loans would not have been made had the reserve bank been unable to make a commiment or share in the risk. The accommodations extended have benefited the banks, the industries, their employees, their communities, and the general situation. Total applications for credit accommodations during the year numbered 718. The following table sets forth the number and amount of notes in the several classifications discounted or purchased, as well as commitments executed, during 1934: Number Items Totals 38 144 $ 1,348,800 474,000 443 15,507,229 625 Commitments under Section 13 (b) Obligations acquired under Section 13(b) Notes rediscounted and collateral notes discounted under other sections Aggregate Amounts 17,330,029 Rates. — On December 31, 1934, the rates in effect at this bank were as follows: 2^2 per cent on advances to member banks on eligible paper and/or collateral, whether rediscounts or member bank promissory notes, under Sections 13 and 13a. 4^2 per cent on advances to member banks on their promissory notes secured by ineligible paper and/or collateral, under Section 10b. (Expires March 3, 1935) 4j4 per cent on advances to banks and other financing institutions on obligations of established industrial or commercial businesses, for working capital, under Section 13b. % per cent flat for commitments not exceeding six months on obligations of established industrial or commercial businesses, for working capital, under Section 13b. 5^2 per cent on direct advances to established industrial or commercial businesses, for working capital, under Section 13b. 4^4 per cent on direct advances to individuals, firms or corporations (including nonmember banks), secured by direct obligations of the United States, under Section 13. 5^2 per cent on direct advances to individuals, partnerships and corporations (excluding nonmember banks) on eligible paper, under Section 13. —9— Investments. — During the course of the year, this institution participated in the Federal Reserve System's open market operations in United States Government securities. The allotments to this bank aggregated $106,435,500. It also joined the Federal Reserve Bank of New York in certain investment transactions for account of banks in foreign countries. Acceptances numbering 201, amounting to $1,205,492, were acquired by this bank, exclusive of its allotment of $849,688 bills payable in foreign currencies. In 1933 the number of acceptances was 3,538, aggregating $25,037,000, exclusive of its allotment of bills payable in foreign currencies. In addition, obligations of the United States and its agencies, numbering 7,300 and representing $42,136,000, were bought or sold by this institution as an accommodation mainly for member banks. Currency. —As was the case during the preceding several years, demand for currency during 1934 was active, and requests for both paper money and coin received by this bank were in considerable volume. From all sources there were received and counted in 1934 a total of 111,701,000 pieces of paper currency, having an aggregate value of $422,218,000. This compares with 103,161,000 pieces, with total face value of $460,167,000, received and counted in 1933. There were received and counted during the year 106,248,000 coins, with total value of $13,226,000, as against 104,609,000 coins, worth $19,459,000, in 1933. Note Circulation.—In 1934 the Federal Reserve Agent issued to the Federal Reserve Bank of St. Louis $70,222,150 of Federal Reserve notes, as compared with $343,920,000 in 1933. The Federal Reserve Bank returned $13,357,150 of fit notes and the Treasurer of the United States redeemed $59,595,395 of unfit notes. On December 31, 1934, Federal Reserve notes outstanding on books of the Federal Reserve Agent amounted to $147,361,670, of which 2.7 per cent was old size currency. The outstanding notes were secured by following pledged with Federal Reserve Agent: $2,900 eligible paper, $8,000,000 U. S. Govt. securities, and $141,936,130 gold certificates on hand and due from U. S. Treasury. The parent bank and branches held $3,470,770 of the notes outstanding, $1,010,700 were in transit to Washington, D. C, for redemption, and $142,880,200 were in actual circulation. Federal Reserve bank notes in the total amount of $3,960,000 were issued by the Federal Reserve Agent to the Federal Reserve bank early in 1934. On June 21, this bank extinguished its liability — 10 — on the outstanding Federal Reserve bank notes by depositing an equivalent amount of lawful money with the United States Treasurer for their retirement. Cash Items. — The accelerated pace of commercial and industrial activities during the year was reflected in a measurable increase in the volume of operations in this department over the preceding twelve-month period. Checks and warrants in 1934 numbered 45,695,000, amounting to $9,100,205,000, which compares with 37,405,000 cash items, amounting to $7,561,240,000, in 1933. At the close of the year the number of individual member banks using the clearing facilities was 381, a decrease of 6 as compared with the end of the preceding year. The number of banks exercising the privilege of direct routing of checks payable in other Federal Reserve districts decreased from 42 to 36 during the year. Nonmember banks maintaining clearing accounts with this bank numbered 95, as against 29 at the close of the preceding year. On December 31, 1934, this institution was collecting checks at par on 1,319 banks in this district, or approximately 78 per cent of all active banks in the area. Noncash Items. — There was a slight decrease in the number, but a substantial gain in the amount of noncash items handled in 1934 as contrasted with the preceding year. The number of such items was 415,000, amounting to $377,385,000, as against 442,000 items, aggregating $291,442,000, in 1933. These items included notes, drafts, coupons other than Government, etc. In addition, 1,188,000 Government coupons, with aggregate value of $19,390,000, were received and cashed. This compares with 1,156,000 such coupons, worth $18,346,000, handled in 1933. At the end of 1934 there were 84 member banks in the Eighth District which had been granted the privilege of routing noncash items direct to other Federal Reserve banks and branches, an increase of 15 over the preceding year. Transfers of Funds.—This institution in 1934 effected a total of 59,000 incoming and outgoing wire and mail transfers of funds, amounting to $2,674,389,000, which compares with 68,000 transfers, involving $2,907,339,000 in 1933. These transfers were between member banks in this district and other districts, as well as between banks within the district. In addition, this bank handled 9,000 deposits, totaling $12,078,000, for national banks to their 5 per cent redemption funds in Washington, D. C. The number of such deposits and their aggregate amount in 1933 were 9,000 and $13,223,000, respectively. — 11 — Safekeeping. — During the course of 1934 the custody department received 144,000 securities, notes, etc., of which 110,000 were from member banks, Government agencies and officials, and 34,000 from other departments of this bank. From securities in its care the custody department clipped and accounted for the proceeds of approximately 123,000 coupons. Foregoing do not include custodies for Reconstruction Finance Corporation or collateral pledged by member banks to secure Government deposits. Fiscal Agency. — A large volume of work was performed as fiscal agent, depositary, and custodian for the United States Government and certain of its agencies. During the year this bank, in issuing, redeeming, and exchanging United States obligations for the Treasury Department, handled 305,000 pieces, with face value of $666,236,000. In issuing, converting, and exchanging securities for the Farm Credit Administration and the Home Owners' Loan Corporation, this bank handled 307,000 pieces, aggregating $150,589,000, in 1934. For the Reconstruction Finance Corporation, this bank made disbursements, collected funds, and held in custody notes, securities, etc. Considerable activity resulted from the advances on cotton and corn by the Commodity Credit Corporation. At the close of 1934, there were 135 banks in the Eighth District which had qualified to receive deposits arising from the sale of United States securities. Government funds in these institutions aggregated $38,622,291. This bank held the collateral securing the deposits and performed other work incident thereto. Gold Settlement Fund. — This fund, maintained in Washington, D. C, by the twelve Federal Reserve banks, continued to prove an efficient and valuable instrumentality for settlement of check clearings between the reserve banks, the transfer of funds between districts, and the transfer of funds for the United States Treasury. Receipts in 1934 from Federal Reserve banks and other sources were $14,780,000 in excess of disbursements, resulting in a balance at the end of the year of $51,800,000 to the credit of this bank. RELATIONS WITH BANKS Membership. —Twenty-six new national banks became members of the Federal Reserve Bank of St. Louis in 1934. The memberships of 46 national banks were terminated, of which eight were through voluntary and 38 through involuntary liquidation. Eight State institutions acquired memberships, and the memberships of three were terminated — two through voluntary surren — 12 — der and one through involuntary liquidation. Four State member banks converted into national banks during the course of the year. On December 31, 1934, the membership was 397, consisting of 324 national banks and 73 State banks and trust companies. Examinations and Reports. — Examinations were made of 68 State member banks and their affiliates by examiners for the Federal Reserve bank, in which they were joined by State examiners. The examiners of this institution also examined two nonmember banks which had applied for membership, as well as six State institutions under Section 21 of the Banking Act of 1933. They also participated with national bank examiners in examination of three holding company affiliates and their subsidiaries. This bank called upon member State banks and trust companies, and the Comptroller of the Currency called on national banks, for reports of condition as of March 5, June 30, October 17, and December 31, 1934. These reports, as well as semi-annual reports of earnings and dividends, reports of reserve requirements, and reports of affiliates of member banks, were reviewed. Certain data were compiled from them for use by the Federal Reserve Board, this bank, or State banking departments. Applications. — Fiduciary powers were granted to six national banks in this district by the Federal Reserve Board in 1934, an increase of five over the preceding year. Supplementary powers were also granted to two national banks. Member bank applications for additional stock and partial surrender of their holdings were received and disposed of periodically. Applications of many individuals to serve banks coming within prohibitions of the Clayton Act, and of securities dealers to serve member banks under Section 32 of the Banking Act of 1933, were received. A number of applications for permits to perform correspondent functions, under the latter section, were also received. Several applications of holding company affiliates for voting permits were handled, and a few nonmember banks qualified to lend to securities dealers and brokers under the Securities Exchange Act of 1934. No additions were made to the list of member banks authorized to accept bills up to 100 per cent of capital and surplus. Publications. —As in preceding years, the statistical division prepared and issued each month a review of trade, industrial, agricultural and financial conditions in the Eighth District. The average monthly circulation in 1934 was 5,805, a moderate increase over the preceding year. The Federal Reserve Board's "National Summary of Business Conditions" was regularly carried in the review. Copies of Regulation S, regarding industrial loans and commitments, Regulation T, relating to extension and maintenance of credit by brokers, dealers and members of National Securities Exchanges, and amended Regulation Q, concerning payment of interest on deposits, issued by Federal Reserve Board, as well as revised pages of this bank's Manual of Facilities, were supplied to member banks. Interpretations, rulings, and regulations of the Federal Reserve Board, and other matters of interest, appeared in the monthly Federal Reserve Bulletin, which is furnished by the Board to member banks. The library maintained by this bank responded to numerous requests for information on banking, financial and general topics. Other Services. — This institution continued to furnish to its member banks, without charge, forms for obtaining financial statements from prospective borrowers, drafts for drawing on their reserve balances, forms for calculating their reserve position each day, etc. Following the practice of previous years, this bank absorbed certain costs in connection with various services performed for member banks, notably collection of items, shipments of currency, transfer of funds, and safekeeping of notes and securities. Visits. — The field representative of this institution made periodical visits to member banks, also to nonmember banks in communities where member banks are located. Annual conventions and group meetings of bankers' associations of the several states of the district were attended by representatives of this bank. Many visitors, including bankers, students, business men and other interested persons, were conducted through the buildings of the parent bank and branches. INTERNAL ORGANIZATION Conferences. — A conference of directors and officers of the parent bank with officers and directors of the branches was held in St. Louis on September 19. Present at the meeting were George R. James of. the Federal Reserve Board; the late E. R. Black, Governor of the Federal Reserve Bank of Atlanta; Governor G. H. Hamilton of the Kansas City Bank, and Governor B. A. McKinney of the Federal Reserve Bank of Dallas. Periodically during the year conferences were held at the head office of the officers of the parent bank and branches. In addition, visits were made by officers of the parent bank to the branches. — 14 — Personnel. — The Retirement System of the Federal Reserve Banks, benefits of which are available to the officers and employees of this bank, was established on March 1, 1934. The directors of this bank elected Olin M. Attebery to represent it on the Board of Trustees of the Retirement System, and the employees selected A. H. Haill as their representative. Effective May 16, L. H. Bailey was elected General Auditor, by the Board of Directors, to succeed E. J. Novy, who died on April 16. W. E. Peterson was elected Secretary pro tern, and was appointed Acting Assistant Federal Reserve Agent, to succeed Mr. Bailey. W. A. Brown, resigned as a director of the Louisville Branch, on September 13. W. C. Montgomery, director of the Louisville Branch died on November 10, and W. R. Cole, director of the same branch, died on November 17. At its meeting, November 21, the Board of Directors of the parent bank, elected Walter V. Bulleit and A. H. Eckles directors of the Louisville Branch to fill the unexpired terms of W. A. Brown and W. C. Montgomery, respectively. The following directors were selected to succeed those whose terms expired at the end of 1934: For the Parent Bank: F. Guy Hitt, elected by member banks in Group 3 as a Class A director; W. B. Plunkett, elected by Group 2 member banks as a Class B director, and Paul Dillard, appointed a Class C director by the Federal Reserve Board. For Louisville Branch. — A. H. Eckles and John T. Moore, elected by the parent bank, and W. W. Crawford, appointed by the Federal Reserve Board. For Memphis Branch. — J. W. Alderson and W. H. Glasgow, elected by the parent bank, and S. E. Ragland, appointed by the Federal Reserve Board. For Little Rock Branch. — Jo Nichol and A. F. Bailey, elected by the parent bank, and Moorhead Wright, appointed by the Federal Reserve Board. On December 31, 1934, the parent bank and its branches had a total of 717 officers and employees, of which a number were temporary employees. At the end of 1933 the personnel numbered 710. A roster of officers and directors of this bank, as well as members of the Open Market Committee, Advisory Council and Industrial Advisory Committee, appears on page 20. EXHIBITS As set forth in the table of contents, exhibits appear at the front and on succeeding pages,of this report. — 15 — DEPOSITS. LOANS. ETC. OF REPORTING MEMBER BANKS In St. Louis, Louisville. Memphis, Little Rock and Evansville. CURVE 1: 2: 3: 4: I i S Deposits. 1 0 3 4 Loans Investments. Borrowings from Federal Reserve Bank. S 8 (AT CLOSE OF BUSINESS EACH WEDNESDAY) 1 FEB. JAN. MAR. APR. MAY JUNE AUG. JULY \ SEPT. OCT. NOV. DEC — Si? -^?> » = = ^ M !••>! i.i> 43. tvi IV* 1;/ (Ii ill •II M A AV fti fM fit III s:t 1 \ 1 su A. / \ / X x*f tn Sit Wi tt. I 1 /•rt i ; */» \s J<I 1 Sv'S 1V. J • 55 *'f >« < I ^--/^•^ \^^\ / SIC JjO f in / (10 SiS ioo »'o HI. vw v« v/. V*f vj; YD VVf Vi-S 7 "•**--*„,„ Wl VIS V)S VJ« Wl % vV. " ' • -, - - " ' " ' Vif Vit VI o Itt V.i V.. J.: 111 // JW j» ; US J30 / JVo »!/ \ / \ »-t--«-*^ Jig f i:S it \ A ^~^ / / T I 1 as 33o 3V. tit lie Je5 J " VT« VJ. VI/ VI. t HI V»o Vlf VII V,f *1* VJ o V M'S 1 Vie I viw vi Vo 1/ la S 0 4 0 1 — JAN. FEB. MAR. APR. MAY JUNE JULY — 16 — AUG. i SEPT. OCT. NOV. DEC. EARNINGS AND EXPENSES OF FEDERAL RESERVE BANK OF ST. LOUIS (Including Branches). 1934 I EARNINGS Discounted bills Purchased bills Industrial advances United States Government securities Commitments to make industrial advances. Deficient reserve penalties Miscellaneous Total earnings CURRENT EXPENSES Salaries: Officers Clerical employees Other employees Contributions—Retirement system Governor's conferences F. R. agents' conferences Federal Advisory Council Directors' meetings Industrial Advisory Committee Members Traveling- expenses Assessments for Federal Reserve Board's expenses., Legal fees Insurance on currency and security shipments Other insurance Taxes on banking house Light, heat, power and water Repairs and alterations, banking house Rent Office and other supplies Printing and stationery Telephone Telegraph Postage Expressage Miscellaneous Total, exclusive of cost of currency Federal Reserve currency : Original cost, including shipping charges Cost of redemption including shipping charges... Taxes on Federal Reserve bank note circulation.. Total current expenses PROFIT AND LOSS ACCOUNT Earnings Current expenses Current net earnings Additions to current net earnings : Profit on United States Government securities sold. All other Total additions Deductions from current net earnings: Bank premises—depreciation Furniture and equipment Reserve for probable losses All other Total deductions Net earnings available for dividends and surplusDividends paid Withdrawn from surplus account (Section 13b).... Withdrawn from surplus account (Section 7) REIMBURSABLE EXPENDITURES (Expenditures as fiscal agent and custodians of the Treasury Department and U. S. Government agencies. Not included in "current expenses" as shown in the preceding table). Treasury Department ; Reconstruction Finance Corporation Other U. S. Government agencies Totals 1933 12,520 4,762 5,846 1,741,855 3,031 699 55,740 1,824,453 I 133,497 44,693 167,302 556,140 158,890 72,769 415 629 1,350 13,406 1,085 *12,348 44,001 818 5,901 25,241 53,333 23,517 9,015 3,000 13,865 29,254 14,066 29,261 105,380 13,862 40,920 1,395,768 172,004 567,215 151,905 • 15,670 26,892 — 1,371 9,709 46,012 53,639 22,552 5,791 3,000 14,582 24,775 15,917 34,241 111,757 16,507 36,699 1,344,733 37,777 8,962 13,027 1,455,534 110,826 9,591 8,161 1,473,311 1,824,453 1,455,534 368,919 1,629,136 1,473,311 155,825 308,050 32,550 340,600 39,059 17,836 56,895 498,714 27,128 42,857 824 569,523 139,996 241,009 47 100,966 175,332 27,901 86,832 13,421 303,486 —90,766 43.3841 182,092 67,649! 293,125 1,372,392 1,629,136 367 342 1,300 15,228 246,643 337,409 27,494 133,166 160,660 * Other than those connected with governors' and agents' conferences and meetings of directors and of the advisory council. — 17 — DISCOUNTS AND INVESTMENTS OF FEDERAL RESERVE BANK OF ST. LOUIS (INCLUDING BRANCHES) « CURVE 1: 2: 3: 4: i: g Discount Rate Total Earning Assets Held Bills Discounted Held United States Securities Held Bills Bought Held • S J.C7«J-a: 3 8 is I IAYEfy\CE FPR EACH WEEK) JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT. OCT. DEC. NOV. 7* s * < • 4 i"v $ 1 i V V nt in. II w II* IV lit 1 4 IIV 1 0 HI ltd 1.4 Itv 11 U 1* •1 ltd •4 2 A lit 11 ~^ 1* ]v '* II K 1* IV la I n it !V It ll 1 J IV lv •1 dU •1 U i.*. u IV lv • t » E fl It, < | c* £>f <v f*. *v ft 4-! f e 4-1 »l> ».* fv it 44 »v 11 Jt » Jfc 1* Jv II vl Vc f VI Vd II >v id v+ W ^•«• II vV vs II Isj. id Vl IV V It 1 1 u If V 0 5 if e | •"— > s JAN. FEB. MAR. APR. MAY JUNE JULY — 18 — AUG. SEPT. OCT. NOV. DEC. STATEMENT OF CONDITION OF FEDERAL RESERVE BANK OF ST. LOUIS (Including Branches). (In Thousands of Dollars) Dec. 31, 1934 Dec. 31, 1933 RESOURCES Gold certificates on hand and due from U. S. Treasury Redemption fund—Federal Reserve notes Other cash t $193,736 61 11,927 Total reserves Redemption fund—Federal Reserve bank notes 206,27 Bills discounted : Secured by U. S. Government obligations, direct and/or fully guaranteed Other bills discounted Total bills discounted Bills bought in open market Industrial advances 174,337 494 797 618 116 419 U. S. Government securities: Bonds Treasury notes Certificates and Bills *$161,949 1,304 11,084 1,415 4,693 13,797 58,359 21,044 14,493 41,901 36,806 Total U. S. Government securities 93,200 93,200 Total bills and securities 93,738 99,308 Due from foreign banks Federal Reserve notes of other banks Uncollected items Bank premises All other resources TOTAL RESOURCES 9 1,901 18,455 2,629 194 1,157 18,732 3,111 413 323,203 TOTAL 129,419 11,728 633 9,370 97,260 100 141 12,357 151,150 109,858 18,988 4,088 4,655 382 893 167 20,476 3,944 9,849 323,203 „ .'. LIABILITIES 144,307 8,067 297,566 , Total deposits Commitments to make Industrial Advances Contingent liability on bills purchased for foreign correspondents Ratio of total reserves to deposit and Federal Reserve note liabilities combined 297,566 142,880 LIABILITIES Federal Reserve notes in actual circulation Federal Reserve Bank note circulation—net Deposits: Member banks — reserve account United States Treasurer—General Account Foreign banks Other deposits Deferred availability items Capital paid in Surplus (Section 7) Surplus (Section 13b) Reserves for Contingencies All other liabilities 14 853 212 1,212 21 130 70.2% 68.6% *Gold coin and bullion are included. NOTE Statistics pertaining to the Federal Reserve Bank of St. Louis and the member banks will also be found in the annual report of the Federal Reserve Board, Washington, D. C. — 19 — FEDERAL RESERVE BANK OF ST. LOUIS DIRECTORS CLASS C JOHN S. WOOD, Chairman of the Board, St. Louis. PAUL DILLARD, Deputy Chairman, Memphis, Tenn. JOHN R. STANLEY, Evansville, Ind. CLASS B CLASS A J. W. HARRIS, St. Louis. F. GUY HITT, Zeigler, 111. W. B. PLUNKETT, Little Rock, Ark. JOHN G. LONSDALE, St. Louis. M. P. STURDIVANT, Glendora, Miss. MAX B. NAHM, Bowling Green, Ky. OFFICERS WM. McC. MARTIN, Governor. OLIN M. ATTEBERY, Deputy Governor. J. G. McCONKEY, Deputy Governor and Counsel. A. H. HAILL, S. F. GILMORE, F. N. HALL, G. O. HOLLOCHER, O. C. PHILLIPS, Controllers. JOHN S. WOOD, Chairman of the Board and Federal Reserve Agent. C. M. STEWART, Secretary and Assistant Federal Reserve Agent. L. H. BAILEY, General Auditor. A. E. DEBRECHT, Assistant Auditor. LOUISVILLE BRANCH OFFICERS JOHN T. MOORE, Managing Director. C. A. SCHACHT, Cashier. STANLEY B. JENKS, Assistant Cashier. DIRECTORS J. B. HILL, Chairman, Louisville, Ky. W. V. BULLEIT, New Albany, Ind. WM. R. COBB, Louisville, Ky. W. W. CRAWFORD, Louisville, Ky. A. H. ECKLES, Hopkinsville, Ky. JOHN T. MOORE, Louisville, Ky. W. P. PAXTON, Paducah, Ky. MEMPHIS BRANCH OFFICERS W. H. GLASGOW, Managing Director. S. K. BELCHER, Cashier. C. E. MARTIN, Assistant Cashier. DIRECTORS WM. ORGILL, Chairman, Memphis, Tenn. J. W. ALDERSON, Forrest City, Ark. E. L. ANDERSON, Dickerson, Miss. W. H. GLASGOW, Memphis, Tenn. WM. R. KING, Memphis, Tenn. WILLIS POPE, Columbus, Miss. S. E. RAGLAND, Memphis, Tenn. LITTLE ROCK BRANCH DIRECTORS G. H. CAMPBELL, Chairman, Little Rock, Ark. A. F. BAILEY, Little Rock, Ark. F. K. DARRAGH, Little Rock, Ark. W. A. HICKS, Little Rock, Ark. JO NICHOL, Pine Bluff, Ark. STUART WILSON, Texarkana, Ark. MOORHEAD WRIGHT, Little Rock, Ark. OFFICERS A. F. BAILEY, Managing Director. M. H. LONG, Cashier. CLIFFORD WOOD, Assistant Cashier. FEDERAL OPEN MARKET COMMITTEE MEMBER INDUSTRIAL ADVISORY COMMITTEE WM. McC. MARTIN, Governor. WM. K. NORRTS, Chairman, St. Louis. JACOB VAN DYKE, Vice-Chm., St. Louis. MAURICE WEIL, St. Louis. HENRY S. GRAY, Louisville, Ky. M. E. FINCH, Memphis, Tenn. L. J. BUB, Secretary. FEDERAL ADVISORY COUNCIL MEMBER WALTER W. SMITH, St. Louis. March 5, 1935. 20 —
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