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ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF ST. LOUIS FOR THE YEAR ENDED DECEMBER 31,1935 ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF ST. LOUIS FOR THE YEAR ENDED DECEMBER 31,1935 LETTER OF TRANSMITTAL FEDERAL RESERVE BANK OF ST. LOUIS St. Louis, February 28, 1936. Board of Governors of the Federal Reserve System, Washington, D. C. 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, 1935. Respectfully, JOHN S. WOOD, Chairman of the Board and Federal Reserve Agent. Note.— This report also furnished to member banks, libraries and others. TABLE OF CONTENTS BUSINESS CONDITIONS Industry and trade Agriculture Banking Page 5 6 6 - FINANCIAL RESULTS Income and expenditures Assets and liabilities Reserve position 7 7 7 , VOLUME OF OPERATIONS Discounts, commitments, etc Rates Investments Currency Note circulation Cash items Noncash items Transfers of funds Safekeeping Fiscal agency Interdistrict settlement fund „ 8 8 9 9 10 10 11 11 11 12 12 RELATIONS WITH BANKS Membership Examinations and reports Applications Securities Exchange Act Publications Other services Visits 12 13 13 13 14 14 14 INTERNAL ORGANIZATION Conferences Personnel 14 IS 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: 1935 Pieces Handled Aggregate Amounts 49,274,000 $10,693,371,000 1,384,000 363,000 21,300,000 456,378,000 59,000 2,957,092,000 Paper currency received and counted....l 14,755,000 435,460,000 Checks (cash items) handled Collections (noncash items) handled: U. S. Govt. coupons paid Other collection items Transfers of funds Coin received and counted 107,870,000 Rediscounts, advances and commitments 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 Collateral to Government deposits received for custody Coupons clipped from securities in custody Bills and securities held in custody December 31: For United States Treasury For Reconstruction Finance Corp For other Govt. departments, agencies and officials For member banks 8,390,675 93,050,000 242 Federal Reserve notes issued by Federal Reserve Agent to bank 12,126,000 6,674,000 467,000 752,267,000 188,000 124,191,000 6,000 82,967,000 166,000 304,305,000 275,346,000 18,027,000 151,970,000 Details regarding these and other activities are given in text of report. — 4- BUSINESS CONDITIONS IN FEDERAL RESERVE DISTRICT No. 8 Industry and Trade. — Throughout its entire duration, the year 1935 in this area was marked by somewhat irregular but substantial expansion in general business. The betterment extended to virtually all phases of activity and, in greater or lesser degree, to all sections of the district. Accompanying increased volume and profits in the several commercial and industrial categories was noticeable improvement in sentiment and morale among the business community and public at large. Reflecting greater confidence in the financial and business structure, more of a disposition was evidenced on the part of manufacturers, merchants and ultimate consumers to fill their requirements for commodities. The volume of industrial production was measurably larger than in 1934, and in a number of important classifications, exceeded that of any year since 1930. The average of factory employment and payrolls was above that of 1934. Consumption of electric power for industrial purposes in the principal cities was more than 12 per cent greater than in the preceding year. Output of bituminous coal, lead and zinc considerably exceeded that of 1934. There was a notable expansion in distribution of commodities during 1935 as contrasted with a year and two years earlier. Wholesale trade, as reflected by combined sales of the reporting firms in lines investigated by this bank, was 2 per cent greater in 1935 than in 1934. The volume of department store sales in the principal cities increased 1.3 per cent from 1934. Stimulated by higher agricultural income, retail trade in the rural sections developed well defined upward trends. The volume of freight transported by railroads increased approximately 9 per cent over the preceding year. Water-borne traffic on the Mississippi River and its tributaries exceeded that of 1934 by 37 per cent and was the heaviest in recent years. While still appreciably below the average of the ten or twelve years preceding the depression, building and construction sustained a marked revival in 1935. Postal receipts in the chief cities were 6 per cent larger in 1935 than a year earlier. Collections during the year were maintained at a high level of efficiency. Agriculture. — Taken as a whole, weather and other influencing factors during 1935 were auspicious for agriculture. The economic condition of the farming community continued to improve, this improvement being reflected in further substantial reduction of indebtedness and expansion in sales of farm implements and other typical merchandise consumed in the rural areas. Acreage of the principal crops varied in minor degree only as contrasted with the preceding year. However, total production was greater, which fact, coupled with the high level of prices, larger returns from livestock, livestock products, rental and benefit payments from the Agricultural Adjustment Administration, brought farm income measurably above that of the preceding several years. The U. S. Department of Agriculture in its report as of December 1, estimated total farm value of sixty-four principal crops in states including the Eighth District at $1,001,927,000, an increase of 3.4 per cent over a year earlier, and 29.2 per cent above the 4-year (1931-1934) average. Price trends of most commodities on farms were upward, and at the end of the year the farm products group of the U. S. Bureau of Labor Statistics index was 78.4 per cent of the 1926 average, against 72.6 per cent and 56.0 per cent, respectively, a year and two years earlier. Demand for and prices of farm lands continued the upward movement which began in 1934. Influencing this improvement were betterment in prices of farm products, lower interest rates on farm mortgages, and operating capital, also expansion in farm income and population. Banking. — Deposits of commercial banking institutions increased considerably during 1935. Bank reserves also moved sharply upward into new high territory, and there was an appreciable expansion in investments, occasioned chiefly by heavy acquisitions of United States Government securities. Influenced by improved business, cheap rates and high banking reserves, industrial and commercial loans of member banks moved moderately upward, particularly during the final quarter of the year. However, the year was characterized by relatively scant demand for credit, and interest rates continued at low levels. Credit extended by the Federal Reserve bank to its member banks remained practically unchanged during 1935 and was in smaller volume than at any time since the early days of the System. A moderate increase was recorded in direct loans to industry and in commitments by this bank. Movements in the principal assets and liabilities of the reporting member banks and the Federal Reserve Bank during the year are indicated by charts on pages 16 and 18. —6— OPERATIONS OF FEDERAL RESERVE BANK OF ST. LOUIS Including Branches at Little Rock, Louisville and Memphis. FINANCIAL RESULTS Income and Expenditures. — Gross earnings in 1935 were $1,850,595, as compared with $1,824,453 for the preceding year. Current expenses aggregated $1,564,938, against $1,455,534 in 1934. After payment of dividends, allowances for depreciation, etc., there resulted a deficit of $899 for the year, which amount was transferred from surplus. In 1934 the sum of $101,013 was withdrawn from surplus. A detailed comparative statement of earnings and expenses is given on page 17. Assets and Liabilities. — Total resources on the final day of 1935 were $383,051,000, which compares with $323,203,000 on December 31, 1934. Between December 31, 1934, and at the same date in 1935, holdings of paper discounted increased from $3,000 to $18,000. Bills purchased in the open market receded from $116,000 to $87,000 and industrial advances from $419,000 to $392,000. There was an increase from $93,200,000 to $108,200,000 in investments of United States Government securities and from $206,277,000 to $244,920,000 in total reserves. Commitments to make industrial advances increased from $1,212,000 to $2,256,000. In the liabilities column, there was an increase from $142,880,000 to $163,304,000 in Federal Reserve notes in circulation. Total deposits rose from $151,150,000 to $183,761,000. Paid in capital decreased from $4,088,000 to $3,757,000, while the surplus provided under Section 7 of the Federal Reserve Act remained stationary at $4,655,000 and the surplus arising from Section 13b increased from $382,000 to $546,000. 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.— Ratio of total reserves to combined Federal Reserve note and deposit liabilities on December 31, 1935, was —7— 70.6 per cent, which compares with 70.2 per cent on the same date in 1934. The maximum for the year was 72.3 per cent, recorded on January 15, and the low point, 60.6 per cent, was reached on May 20. VOLUME OF OPERATIONS Rediscounts, Advances and Commitments.— Since passage on June 19, 1934, of Section 13b, authorizing the Reserve banks to aid in providing working capital to established industrial or commercial businesses, every possible effort has been made to acquaint banks and business interests of the district with the facilities afforded under this section. On June 30, 1934, member and nonmember banks and Chambers of Commerce were circularized, and later statements were given to the press, conferences with bankers were held, additional circulars were sent out and our field representative discussed the matter with officials of banks that he visited. In a general way the same methods for disseminating information were practiced during 1935, but on a somewhat broader and more intensive scale. During the months April through September, a display article regarding industrial loans and commitments was published on the front page of this bank's Monthly Review of Conditions, which is mailed to approximately 6,000 bankers, manufacturers, wholesalers, retailers, newspapers, trade publications, etc. All applications received were carefully considered, and every effort was made to grant accommodations requested wherever it appeared possible to do so on a sound basis under the law. Total applications for credit accommodations during the year numbered 704, of which 631 were under Section 13b. In 1934 there were 718 applications, of which 275 were under Section 13b. The following comparative table gives the number and amount of notes in the several classifications actually discounted or purchased, also commitments executed: No. of Items 1935 1934 Aggregate Amounts 1935 1934 Commitments under Section 13b 112 38 $4,423,000 $ 1,349,000 Obligations acquired under Sec. 13b.. 57 144 290,000 474,000 Notes rediscounted and collateral notes discounted under other sections.... 73 443 1,961,000 15,507,000 Totals 242 625 6,674,000 17,330,000 Rates. — Effective January 3, the discount rate of this bank was reduced from 2}i to 2 per cent for accommodations to member banks under Section 13 and 13a of the Federal Reserve Act. As of February 23, the rate charged on direct advances to individuals, firms, corporations and nonmember banks secured by direct United States Government obligations was lowered from 4 ^ to 4 per cent. To March 3, 4 ^ per cent was the rate on advances to member banks on their promissory notes under Section 10b, when this provision expired. A section of the Banking Act of 1935, passed on August 23, provided for the reinstatement of Section 10b, and on October 3, a rate of 2y2 per cent was established by this bank. On December 31, 1935, the rates in effect at this bank were as follows: 2% per annum for rediscounts and advances to member banks, under Sections 13 and 13a. P e r annum for advances to member banks, under Section 10b. per annum for rediscounts, purchases and advances to member banks (including nonmember banks and other financing institutions), under Section 13b. flat for commitments not exceeding six months to member banks (including nonmember banks and other financing institutions), to rediscount, purchase or make advances, under Section 13b. 5/4% per annum for advances to established industrial or commercial businesses, under Section 13b. 4% per annum for advances to individuals, firms or corporations (including nonmember banks), secured by direct obligations of the United States, under Section 13. Sy4% per annum for advances to individuals, partnerships and corporations (excluding nonmember banks), under Section 13. Investments. — On December 31, this bank's holdings of United States Government securities totaled $108,200,000, mainly representing securities allotted from the Federal Reserve System's special investment account. No bills were purchased in the open market or from other Federal Reserve banks for our own account in 1935. However, this bank participated with the Federal Reserve Bank of New York in bills of foreign banks, payable in foreign currencies, purchased for the System account during the year. Such participation at end of the year amounted to $87,000. Chiefly as an accommodation to its member banks, this institution purchased or sold obligations of the United States and its agencies numbering 5,340, with value of $25,872,000, which compares with 7,300 securities, representing $42,136,000 in 1934. Currency. — Requirements for currency during 1935 were active, particularly in the final quarter when the large volume of holiday trade had a stimulating effect on demand from all sections —9— of the district. The total amount of paper money and coin handled was appreciably larger than during the preceding year. From all sources in 1935, there were received and counted 114,755,000 pieces of paper currency, having an aggregate value of $435,460,000. This compares with 111,701,000 pieces, with total face value of $422,218,000, in 1934. Coins to the number of 107,870,000, worth $12,126,000, were taken in and counted, against 106,248,000, with value of $13,226,000, received and counted during the preceding twelve months. Note Circulation.— In 1935 the Federal Reserve Agent issued to the Federal Reserve Bank of St. Louis $93,050,000 of Federal Reserve notes, as compared with $70,222,150 in 1934. The Federal Reserve Bank returned $13,695,000 of fit notes and the Treasurer of the United States redeemed $54,900,565 of unfit notes. On December 31, 1935, Federal Reserve notes outstanding on the books of the Federal Reserve Agent amounted to $171,816,105 of which 2 per cent was old size currency. These outstanding notes were secured by the following collateral pledged with the Agent: $7,500 eligible paper, $3,000,000 United States Government Securities, and $169,632,130 gold certificates due from United States Treasury. The parent bank and branches held $7,634,340 of the notes outstanding, $878,500 were in transit to Washington for redemption, and $163,303,265 were in actual circulation. No Federal Reserve bank notes were issued by the Federal Reserve Agent to the Federal Reserve Bank of St. Louis during 1935, as compared with $3,960,000 issued in 1934. There were $3,115,050 of such notes outstanding on December 31, 1935, on which this bank had extinguished its liability by depositing lawful money with the United States Treasurer for their retirement. Cash Items. — Reflecting the marked improvement in trade and industry in this district and through the country generally, the volume of work performed by Transit Department in 1935 was in appreciably heavier volume than during the preceding several years. Checks and warrants handled numbered 49,274,000, amounting to $10,693,371,000, which contrasts with 45,695,000 cash items, amounting to $9,100,205,000, in 1934. The number of individual member banks using the clearing facilities in 1935 was 369, a decrease of 12 as compared with a year earlier. The number of banks granted the privilege of direct routing of checks payable in other Federal Reserve districts was 36, the — 10 — same as in 1934. Nonmember banks maintaining clearing accounts with this Bank decreased from 95 to 91 during the year. On the final business day of 1935, the Federal Reserve Bank of St. Louis, was collecting checks at par on 1,278 banks in this district, approximately 77 per cent of all active banks in the territory. Noncash Items.— There was a moderate decline in the number, but a substantial gain in the amount, of noncash items handled in 1935 as compared with the year before. The number of such items was 363,000 amounting to $456,378,000, against 415,000, amounting to $377,385,000, in 1934. Included in these items were notes, drafts, coupons other than Government, etc. In addition, 896,000 coupons from direct United States Government obligations, with aggregate value of $15,926,000, were paid, against 1,188,000 such items, aggregating $19,390,000, in 1934. Coupons from issues of Government agencies numbered 488,000, with value of $5,374,000. At the end of 1935 there were 90 member banks which had been accorded the privilege of routing noncash items direct to other Federal Reserve banks and branches, an increase of six over the preceding year. Transfers of Funds. — During the course of 1935 this institution effected a total of 59,000 incoming and outgoing wire and mail transfers of funds amounting to $2,957,092,000, which compares with 59,000 transfers, involving $2,674,389,000, in 1934. Safekeeping.—As during preceding years, the custody department of this institution continued to perform a valuable and appreciated service for its member banks in the form of safekeeping of notes, bonds and other securities, besides clipping coupons from bonds held and accounting for their proceeds. During the course of the year the department cut 166,000 coupons, an increase of 43,000 over the number handled in 1934. Securities received as collateral to War Loan Deposit Account, numbering 6,072 and having a total value of $82,967,000, were received by this department. Unpledged bills and securities of member banks in the aggregate amount of $131,620,000 were held in custody as of December 31, 1935. Member banks' securities pledged to secure public deposits amounted to $20,350,000 on that date. In addition, at close of the year this bank also held in custody the following bills and securities: For United States Treasury $304,305,000; for Reconstruction Finance Corporation $275,346,000; — 11 — and for other Government departments, agencies and officials $18,027,000. Fiscal Agency. — In the performance of its duties as fiscal agent for the United States Government this bank, in issuing, redeeming and exchanging Government securities, handled 467,000 pieces, amounting to $752,267,000. In 1934 there were 305,000 securities handled, aggregating $666,236,000. This bank also acted in a similar capacity for the Farm Credit Administration and the Home Owners' Loan Corporation, for which agencies in 1935 it handled 188,000 securities, with a total value of $124,191,000, against 307,000 pieces, amounting to $150,589,000, during the preceding twelve months. For the Reconstruction Finance Corporation this bank made disbursements,collected funds,and held in custody notes and securities ; also purchased and sold securities and acted as agent in the issue and redemption of the Corporation's notes. Other activities of considerable volume resulted from advances made on corn and cotton by the Commodity Credit Corporation. This bank also performed services for the Federal Emergency Administration of Public Works. In August this bank began to pay Work Relief checks issued under the Emergency Relief Appropriation Act of 1935. At the close of 1935 there were 138 banks in the district which had qualified to receive deposits arising from the sale of Government securities, against 135 banks at the end of the preceding year. The amount of Government funds in these institutions was $13,342,988 against $38,622,290 at the end of 1934. This institution held the collateral pledged as security for deposits and performed other duties incident to the deposit and withdrawal of funds. Interdistrict Settlement Fund.— As in previous years, the settlement fund, maintained by the Federal Reserve banks at Washington, D. C, served as an expeditious and efficient medium for settling check clearings between the Reserve banks, the transfers of funds between districts, and transfers for the United States Treasury. Receipts in 1935 from the Federal Reserve banks and other sources were $4,689,000 in excess of disbursements, resulting in a balance as of December 31, 1935, of $56,489,000. RELATIONS WITH BANKS Membership. — On January 1, 1935, the membership of the Federal Reserve Bank of St. Louis was 397, consisting of 324 national banks and 73 State banks and trust companies. — 12 — During the year three national banks were chartered and seven surrendered their memberships because of liquidations, causing a net decrease of 4, or a total of 320 on December 31, 1935. The memberships of three State banks were terminated during the year through conversion and voluntary surrender of membership, leaving a total of 70 on December 31, 1935. Examinations and Reports. — Examinations were made of all the State member banks jointly by examiners for the Federal Reserve bank and State examiners. The total number of examinations was 71. 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 4, June 29, November 1, and December 31, 1935. 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 and analyzed. Certain data were compiled from them for use by the Board of Governors, this bank, or State banking departments. Applications.— Fiduciary powers were granted to four national banks in this district by the Board of Governors in 1935. Applications of 26 individuals to serve banks coming within the prohibitions of the Clayton Act were received. No applications of securities dealers to serve member banks under Section 32 of the Banking Act of 1933 were filed. Inasmuch as the Board authorized, by blanket permit, correspondent relationships under Section 32 between member banks and dealers in securities in connection with underwriting and dealing in those securities exempted from the restrictions contained in Section 5136 of the Revised Statutes, no applications for permits to perform correspondent functions were filed. Two limited voting permits and two general voting permits were issued to holding company affiliates during the year. No additions were made to the list of member banks authorized to accept bills up to 100 per cent of capital and surplus. Securities Exchange Act. — During the year, ten nonmember banks qualified to lend to securities dealers and brokers under the Securities Exchange Act of 1934. The Board of Governors has taken action, in accordance with Section 17b of the Securities Exchange Act of 1934, to require monthly reports to enable the Board to perform the functions con — 13 — ferred upon it by that Act, from all member firms of national securities exchanges who are extending credit. In this district, the reporting requirement became effective September 30, 1935, for member firms of the New York Stock Exchange and of the New York Curb Exchange, and October 31, 1935, for member firms of the St. Louis Stock Exchange, having their principal offices in this district. The thirty-three member firms in this district who were requested to file monthly reports, in general, responded in a gratifying manner. Publications. — The "Monthly Review of Business, Financial and Agricultural Conditions in the Eighth District", prepared by the Statistical Division, had an average monthly circulation of 6,062, an increase of approximately 8 per cent over the preceding year. The "National Summary", prepared by the Board of Governors was regularly carried in the Review. The bank's library responded to numerous requests for the booklet, "The Federal Reserve System", as well as other information on banking, financial, and general topics. Other Services, — This institution furnished gratuitously to member banks forms for obtaining financial statements from prospective borrowers, drafts for drawing on their reserve balances, forms for calculating reserve position, etc. Costs in connection with various services for member banks, notably collection of items, shipments of currency, transfers of funds, and safekeeping of securities, as in the past, were absorbed by this bank. Visits. — Periodical visits to member banks, and to nonmember banks in communities where member banks are located, were made by the field representative of this institution. Representatives of this bank attended annual conventions and group meetings of bankers' asociations of the States included in the Eighth District. Officers responded to a number of requests to address gatherings of bankers, business men, etc. Bankers, students, business men, and others interested were conducted through the buildings of the parent bank and branches. INTERNAL ORGANIZATION Conferences. — Officers of the parent bank and branches held periodical conferences at the head office, and visits were made by officers and directors of the parent bank to the branches. — 14 — The directors of the parent bank held their board meetings at the Louisville Branch on September 18, at the Little Rock Branch on October 16, and at the Memphis Branch on November 20. Conferences with the branch officers and directors followed the board meetings. J. J. Thomas and George R. James, of the Board of Governors, attended the Little Rock and Memphis meetings, respectively. On October 8 Chairman Eccles, of the Board of Governors, visited this institution and addressed a luncheon meeting in the bank of representatives of banks in this metropolitan area. M. S. Szymczak, member, and L. P. Bethea, Assistant Secretary, of the Board, also visited this bank during the year. The periodical examination of the Federal Reserve Bank of St. Louis and its branches was made by examiners of the Board of Governors as of September 21, 1935. Personnel. — J . B. Hill was appointed a director of the Louisville Branch by the Board of Governors in January, to fill the unexpired term of W. R. Cole, deceased. The following directors were selected to succeed those whose terms expired at the end of 1935: For the Parent Bank: John G. Lonsdale, elected by member banks in Group 1, as a Class A director; M. P. Sturdivant, elected by Group 3 banks as a Class B director, and John R. Stanley, appointed a Class C director by the Board of Governors. For Louisville Branch.— Wm. R. Cobb and John T. Moore, elected by the parent bank, and J. B. Hill, appointed by the Board of Governors. For Memphis Branch.— Willis Pope and W. H. Glasgow, elected by the parent bank. For Little Rock Branch.— A. F. Bailey, elected by the parent bank. On December 31, 1935, the parent bank and its branches had a total of 761 officers and employees, of which a number were temporary employees. At the end of 1934 the personnel numbered 717. A roster of officers and directors of this bank, as well as members of the Federal 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. — IS — GROSS DEPOSITS, LOANS, ETC., OF REPORTING MEMBER BANKS < S In St. Louis, Louisville, Memphis, Little Rock and Evansville o 1935 g .LIONS O CURVE 1: 2: 3: 4: Gross Deposits. Loans, including Bills Rediscounted with Federal Reserve Bank. Investments Borrowings from Federal Reserve Bank i 0 s o s (AT CLOSE OF BUSINESS EACH WEDNESDAY) JAN FEB MAR. APR. MAY JUNE JULY AUG. SEPT NOV. OCT DEC. /If no u & as la %S0 Its tfo tx frs / \ / Sic Ay in in % its j / / m V" ?« no A J \ I" ISo iff m 1 7vt> trr t?o Vx TV J )is 7> A r—S no TVS f^y tn as tio 1 / //v ii* Do us tie A A \ A / /v \y A A . A A/ r^y\ 7;f 11 o IIS If ISS / \/ / \ ^S /^ \\ I / US w Th fHf \ // \ fye 116 \J V Vt 110 110 Yi" no Yd Yft Ytf i 2 _ ^ ^ Ws Hi Yis YIS Yes Yoo i<# Ho* ju itf Ho 51o iio Hi 37c as ibo iSS )So >ff 3 }*> ~\ no r— / / / / J yA / \\ \ \ \ \ \ 1S° US \ / ^/ A> A^^—y\ A / \/V / v — ^ J r\\ v i—• )iS Mo }So V* V 3V u US SIS 310 Vo Yt) IS Ye 1* 10 10 s 4 s 0 0 ~<-^? JAN FEB. MAR APR. MAY JUNE JULY — 16 — AUG SEPT. OCT NOV. DEC EARNINGS AND EXPENSES OF FEDERAL RESERVE BANK OF ST. LOUIS (Including Branches). Dec. 31, 1935 EARNINGS Discounted bills Purchased bills Industrial advances United States Government secui'ities Commitments to make industrial advances. Deficient reserve penalties Miscellaneous Total earnings £ 992 734 25,016 1,728,739 20,623 543] 73,948! 1,850,595 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 U. S. Government securities sold Foreign Exchange profit All other Total additions Deductions from current net earnings: Bank premises—depreciation Furniture and equipment Reserve for losses Assessment for building for Board of Governors., All other Total deductions Net earnings available for dividends and surplus. Dividends 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 — 17 — 165,661 535,254 168,630 187,920 506 1,350 13,460 621 8,642 42,120 31 5,070 21,783 52,936 22,487 7,855 3,000 16,117 20,640 11,948 26,377 88,879 18,186 37,282 1,456,755 97,754| 10,4291 Dec. 31, 1934 f 12,520 4,762 5,846 1,741,855 3,031 699 55,740 1,824,453 167,302 556,140 158,890 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 1,564,938 37,777 8,962 13,027 1,455,534 1,850,595 1,564,938 285,657 1,824,453 1,455,534 368,919 244,755 6,635 7,185 258,575 308,050 20,774 11,776 340,600 176,917 20,833 79,337 30,485 1,372 308,944 498,714 27,128 42,857 824 569,523 235,288 139,996 236,187 899 241,009 47 100.966 56,815 219,139 60,935 336,889^ 43,384 182,092 67,649 293,125 DISCOUNTS AND INVESTMENTS FEDERAL RESERVE BANK OF ST. LOUIS (INCLUDING BRANCHES AT LITTLE ROCK. LOUISVILLE AND MEMPHIS) DURING YEAR 19 3 5 • sud rediscount* under !V nt Rate Total Earning Assets Held United States Securities Held Bills Bought Held (including participations in inveitme Industrial Commitments under Section 13b Rediscounts, Collateral Notes, Industrial Adv Section* 1 VERACE FOR EACH WEEK) MAY JAN. JUNE JULY AUG. SEPT 3 Y* v V ii an 2.U* Itk lei It3 hi Ice V V V :••• II 'it I I fir j (t • ^ i JAN. FEB. MAR. MAY JUNE 1 JULY 18 — AUG. 1 SEPT. STATEMENT OF CONDITION OF FEDERAL RESERVE BANK OF ST. LOUIS (Including Branches). (In thousands of dollars) Dec. 31, 1935 ASSETS Gold certificates on hand and due from U. S. Treasury Redemption fund—Federal Reserve notes Other cash Dec. 31, 1934 $226,121 799 18,000 244,920! Total reserves $193,736 614 11,927 206,277 Bills discounted : Secured by U. S. Government obligations, direct and/or fully guaranteed Other bills discounted Total bills discounted 18 87 392 108,200 » LIABILITIES Federal Reserve notes in actual circulation Deposits : Member banks — reserve account United States Treasurer—general account Foreign banks Other deposits 323,203 142,880 129,419 11,728 873 18,988 4,088 4,655 546 970 155 382 893 167 383,051 LIABILITIES Ratio of total reserves to deposit and Federal Reserve note liabilities combined Contingent liability on bills purchased for foreign correspondents Commitments to make industrial advances 151,150 25,903 3,757 4,655 .". 9,370 183,761 Deferred availability items Capital paid in Surplus (Section 7) Surplus (Section 13b) Reserves for contingencies All other liabilities 633 8,646 Total deposits TOTAL 9 1,901 18,455 2,629 194 159,725 14,517 Due from foreign banks Federal Reserve notes of other banks Uncollected items Bank premises All other assets TOTAL ASSETS 4 2,027 24,737 2,451 215 163,304 Total bills and securities 93,738 383,051 Total U. S. Government securities 13,797 58,359 21,044 93,200 108,697 U. S. Government securities: Bonds Treasury notes Treasury bills 116 419 9,420 74,346 24,434 Bills bought in open market Industrial advances 323,203 70.6% 70.2% 2,256 1,212 21 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 Board of Governors, 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 J. W. HARRIS, St. Louis. W. B. PLUNKETT, Little Rock, Ark. M. P. STURDIVANT, Glendora, Miss. CLASS A F. GUY HITT, Zeigler, 111. JOHN G. LONSDALE, St. Louis. MAX B. NAHM, Bowling Green, Ky. OFFICERS WM. McC. MARTIN, President. OLIN M. ATTEBERY, First Vice-President. J. G. McCONKEY, Vice-President and General 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 DIRECTORS W. P. PAXTON, Chairman, Paducah, Ky. W. V. BULLEIT, New Albany, Ind. WM. R. COBB, Louisville, Ky. W. W. CRAWFORD. Louisville, Ky. A. H. ECKLES, Hopkinsville, Ky. J. B. HILL, Louisville, Ky. JOHN T. MOORE, Louisville, Ky. MEMPHIS BRANCH DIRECTORS E. L. ANDERSON, Chairman, Dickerson, Miss. J. W. ALDERSON, Forrest City, Ark. W. H. GLASGOW, Memphis, Tenn. WM. R. KING, Memphis, Tenn. WILLIS POPE, Columbus, Miss. OFFICERS JOHN T. MOORE, Managing Director. C. A. SCHACHT, Cashier. STANLEY B. JENKS, Assistant Cashier. OFFICERS W. H. GLASGOW, Managing Director. S. K. BELCHER, Cashier. C. E. MARTIN, Assistant Cashier. LITTLE ROCK BRANCH DIRECTORS F. K. DARRAGH, Chairman, Little Rock, Ark. A. F. BAILEY, Little Rock, Ark. W. A. HICKS, Little Rock, Ark. JO NICHOL, Pine Bluff, Ark. OFFICERS A. F. BAILEY, Managing Director. M. H. LONG, Cashier. CLIFFORD WOOD, Assistant Cashier. FEDERAL ADVISORY COUNCIL MEMBER WALTER W. SMITH, St. Louis. INDUSTRIAL ADVISORY COMMITTEE WM. K. NORRIS, Chairman, St. Louis. JACOB VAN DYKE, Vice-Chairman, St. Louis. MAURICE WEIL, St. Louis. March 20, 1936. — 20 — HENRY S. GRAY, Louisville, Ky. M. E. FINCH, Memphis, Tenn. L. J. BUB, Secretary.
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