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THIRD ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF ST. LOUIS FOR THE YEAR ENDED DECEMBER 31, 1917 http://fraser.stlouisfed.org/ Federal Reserve12'^'^y Louisl r F '^ Bank of St. i » . WASHINGTON GOVERNMENT PRINTINGXOFFICE 1918 ^ LETTER OF TRANSMITTAL. FEDERAL RESERVE BANK, St, Louis, Mo,, January 15, 1918. SIR : I have the honor to transmit herewith the third annual report of the Federal Reserve Bank of St. Louis, covering the year ended December 31, 1917. Respectfully, W M . M C C . MARTIN, GJiairman and Federal Reserve Hon. W. P. G. H A R D I N G , Governorf Federal Reserve Board, Washington, D, G. Agent, TABLE OF CONTENTS. Page. 7 7 8 8 10 11 11 11 12 12 13 13 14 14 15 15 16 16 17 17-21 20 22-24 24 25 25 26 26 Earnings and expenses Comparative balance sheets, 1916-17 Profit and loss statement Business and banking conditions in the district Discount operations Discount rates Bankers' acceptances purchased Municipal warrants purchased Reserve position of the bank Membership within the district Relations with national banks State banks and trust companies Accommodation of member banks through discounts Bill-of-lading drafts Grants of fiduciary powers Louisville branch Memphis agency Relations with the public Government deposits Liberty loan campaigns Treasury certificates of indebtedness Federal Reserve note issues Management of the bank Election of directors. Officers and staff Bank premises Check clearing and collection EXHIBTTS. A. B. C. D. E. F. G. H, L. Comparative statement of earnings and expenses, 1916-17 Comparative statement of condition, 1916-17 Profit and loss statement, 1916-17 Volume of rediscounts accepted, b y States Rediscount operations, classified b y maturities Fiduciary powers granted to national banks Treasury certificates of indebtedness I, J, K. Federal Reserve notes issues Check clearing and collection 28 28 29 30 30 31 32 33-35 35 6 THIRD ANNUAL REPORT OF THE FEDERAL. RESERVE BANK OF ST. LOUIS. F I N A N C I A L RESULTS OF OPERATION. F o r t h e months of J a n u a r y , F e b r u a r y , March, and A p r i l , 1916, the Federal Reserve B a n k of St. Louis showed no net earnings, but in May of t h a t year the earnings were $1,888.47, and from t h a t date steadily increased m o n t h by month until in December, 1916, the net earnings amounted to $23,191.18. F o r the m o n t h of J a n u a r y , 1917, the earnings amounted to $18,971.82, and from t h a t figure they steadily increased t h r o u g h o u t the entire year. I n this connection, it must be remembered t h a t in this district J a n u a r y , F e b r u a r y , March, and frequently A p r i l , are the lean months, and it must also be borne in m i n d t h a t war was not declared until A p r i l of this year. I t is therefore reasonable to presume t h a t the earnings for these first four m o n t h s in 1917 were not due especially to abnormal conditions but, it would seem, were d u e more particularly to the fact t h a t banks h a d begun to realize how easily they could do business with the Federal Reserve B a n k and Avere using its facilities. Attached hereto, as E x h i b i t A, is a statement showing earnings and expenses, by months, for the years 1916 and 1917. T h i s shows t h a t d u r i n g the year 1917 the percentage of expenses to earnings has decreased from 3§.58 per cent to 25.93 per cent. I n 1917 t h e earnings of the Federal Reserve B a n k of St. Louis amounted to $738,713.38, and the expenses of the bank were $236,557.34, leaving net earnings of $502,156.04. On March 31, 1917, the bank paid a dividend for the period from A p r i l 1, 1915, to J u n e 30, 1915, and on J u n e 30, 1917, it paid a dividend for the period from J u l y 1, 1915, to December 31, 1915. O n December 31 of this year the bank p a i d a dividend for the year 1916. T h i s left a balance in the profit and loss account of $230,338.58. C O M P A R A T I V E B A L A N C E S H E E T S FOR D E C E M B E R 3 1 , 1 9 1 0 A N D 1917. These comparative balance sheets, which are attached to this report as E x h i b i t B , disclose an increase in the earning assets of this bank 7 8 ANNUAL. R E P O R T O F FEDERALr RESERVE B A N K OP S T . L O U I S . of $32,988,518.58. Last year a comparison of the balance sheets of 1915 and 1916 showed a large increase in earning assets of all classes of investments, excepting bills discounted for member banks. This year, as compared with 1916, the balance sheet shows a large increase in all items excepting that of municipal warrants. I n 1916 the principal source of income was open-market purchases of bankers' acceptances. During this year the largest source of income has been from bills discounted for member banks, in which there has been a very large increase. An increase is shown in capital, due in large measure to the admission of State banks into the system. There is also a large increase in deposits, both gross and net. PROFIT A N D LOSS S T A T E 3 I E N T FOR YEARS 1 9 I G A N D 1017. During 1917 the earnings from bills discounted for member banks were much larger than those from any other source. The percentage of earnings derived from the various sources for 1916 and 1917 are as follows: 1916 Bills discounted for other Federal Reserve Banks Bills discounted and loans to member banks Acceptances ......... Municipal warrants Interest on United States securities Transfers bought United States securities, profit and appreciation.. Sundry Total 16 28 12 23 10 9 1 100 1917 1 47 23 2 15 8 4 100 Attached hereto as Exhibit C is a comparative profit-and-losa statement covering the years 1916 and 1917. GENERAL B U S I N E S S A N D B A N K I N G CONDITIONS I N T H E DISTRICT. During 1916, from month to month, business steadily increased until at the end of the year it was at an extremely high level. Prices also steadily increased, but at the end of the year they had not reached a jooint which had curtailed demand. I t continued steady for both luxuries and necessities. During the early part of 1917, business continued unabated and was not affected by the usual after Christmas dullness. However, in the early months of 1917, what we may call unrestrained buying* which was in evidence in the latter part of 1916, began to lessen, and by the latter part of February buj'^ers began to discriminate. Prices made them i^ause a little, both buyer and seller became more conservative, and siieculative buying in this district was about eliminated. However, the buying power of the public continued very AKNUAXi BEPORT OF FEDERAL RESERVE B A N K OF ST. L O U I S . 9 large, especially in those sections of this district contiguous to L i t t l e Kock and Memphis. D u r i n g A p r i l , 1917, business, while still active,* did not increase in the same ratio as in the past months. Reports from different houses t h r o u g h o u t the district in describing their business, spoke of it as " good " and " extremely active," although on closer analysis it would seem t h a t while business houses were doing a large business as measured by amounts, it was not so large when measured by the number of transactions. I n other words, there were not as m a n y buyers, b u t those who bought paid more for the product. This country was declared to be at war with Germany in A p r i l , 1917, but business seemed to have discounted t h e emergency and was well prepared. I t continued d u r i n g May at a h i g h level, its tone being one of conservatism, with a strong underlying feeling of confidence. A scarcity of canned goods became a p p a r e n t and also a scarcity of sugar. Building began to show the high cost of material, and while it h a d never been as active d u r i n g the previous months as other lines, it; noAV began to fall off perceptibly. D u r i n g J u n e , J u l y , and August the w a r showed its sobering effect, and reports from throughout the district showed a quieter condition in practically all lines, exceiDt munitions. Business was operated on a conservative basis d u r i n g these months. W h i l e the volume of sales in wholesale lines continued to be large, they showed smaller increases t h a n for the previous months. T h e demand for m e r c h a n dise from dry-goods jobbers became less t h a n it h a d been for a n u m ber of m o n t h s previous. Prices continued to increase, and shoAved a decided effect on such articles as the public could conveniently do w^ithout. Previous to this the prices of luxuries h a d made t h e public pause, but now they began to make them stop buying. Doubtless the campaign for economy, which Avas then beginning, also h a d its effect. However, business held up well, and collections were good.^ D u r i n g the latter months of the year business in general has been active, the increase in dealings for supplies necessary for war bringing up the average. I n October wholesalers and jobbers reported t h a t they were doing a large business, and the consumption of goods was indicated r a t h e r t h a n the accumulation of stocks in the h a n d s of the retailer. T h i s year the wheat crop in this district was largely in excess of t h a t of 1916, but below the five-year average. T h e oats and corn crops Avere Avell aboA^e those of 1916 and the five-year average. T h e cotton crop Avas only from 60 to 75 per cent of last y e a r ' s crop. I t was at least a month late, and was caught by a killing frost about October 8. I t also moved A^ery slowly, due in great measure to the lack of A^essels to carry it from port. 54008—18 2 10 A N N U A L REPORT OF FEDERAL RESERVE B A N K OF ST. LOUIS. The tobacco crop in general was good. The price index of all crops was 46.1 per cent higher than a 3^ear ago, and 104.3 per cent higher than the average of the preceding years. Throughout the year there has been large buying power in the rural communities, and business, measured in dollars, continues active. A number of country merchants are buying now for the future, apparently feeling that prices will not be lower. Throughout the year there has been a shortage in cars. Until March there was little difficulty in handling shipments to the South and West, but there were serious delays in handling shipments to the East. The shortage has increased, and as the year closes transportation in all directions is in an extremely unsatisfactory condition. Labor has been unsettled throughovit the year, and there have been many small strikes and threats to strike. At the beginning of the year the deposits of all banks in this district were at a high level and money was easy. Prevailing rates to customers in St. Louis were from 4 to 4|^ per cent, and in other sections of the district the rate was somcAvhat higher. As th( year closes, deposits in the banks in this district are higher than at the same time last year. In the large centers the rates to customers range from 5^ to 6 per cent, with rates in the outlying districts slightly higher. In brief, during 1917 the rates charged customers by banks in the larger centers have increased about 1^ per cent. This country is engaged in the greatest war in history; two Liberty bond issues, aggregating $5,808,766,150, have been sold. I n December of this year, in this district, the Government withdrew from the banks over $60,000,000, and many of the banks also had to make the second payment on the second issue of Liberty loan bonds approximately $17,000,000. This showed its effect on the reserves of the banks throughout the district, but because they could rediscount with the Federal Reserve Bank of St. Louis, business felt little, if any, effect. I n fact, the increase in rates to customers is probably due more to delay in transportation than to the bond issue. Mail in transit is all behind time, making the " float" in checks on the average a day late in this district. Cars can not be obtained for shipment, and this requires that the commodities, greater in value than for years x^revious, be carried longer. I t is worth repeating again that in our first year of the war, rates to customers have increased only 1^ per cent. ACTIVITIES or THE FEDERAL RESERVE B A N K DURING THE YEAR. DISCOUNT OPERATIONS. The total rediscounts accepted by this bank during the year 1917 amounted to $181,117,651.14. Of this amount $68,983,149.22 con ANKUAL KEPOBT OF FEDERAL RESERVE BANK OF ST. LOUIS. 11 sisted of notes or single-name p a p e r ; $3,114,505.68 of t r a d e acceptances or two-name p a p e r ; $427,277.24 of commodity paper, and $108,592,719 of notes of member banks secured by United States certificates of indebtedness. Liberty bonds, or eligible commercial paper as collateral. F r o m J a n u a r y 1 to December 31, 1916, the total, rediscounts accepted by the bank amounted to $8,842,666.57. T h u s there was an increase in the amount of rediscounts accepted by the F e d e r a l Reserve B a n k d u r i n g 1917 over the iDrevious year of $172,274,984.57. I n December this bank rediscounted for another F e d e r a l Reserve B a n k $5,000,138 of notes secured by Liberty bonds. T h i s was the first time this bank rediscounted for another Federal Reserve Bank. D u r i n g 1917 there were 8,471 notes rediscounted for member banks. D u r i n g 1916 there Avere 3,133 notes rediscounted for member banks, showing an increase of 5,338 in the number of notes handled. Attached hereto, as E x h i b i t D , is a table showing the volume of discounts accepted from each State each month, the total amount accepted from each State d u r i n g the whole year, and the number of banks in each S t a t e rediscounting each month, and attached, as E x hibit E , is a table showing the volume of rediscounts of t h e different maturities and classes accepted each month and d u r i n g the whole year. DISCOUNT RATES. T h e following schedule shows the rates in effect at the first of the year, and the changes made d u r i n g the y e a r : Commodity paper. J a n . 1, 1917 J a n . 5,1917 Feb. 9,1917... N o v . 7, 1917... Dec. 11, 1917.. Trade acceptance. 15 I n effect— 60 90 15 30 6 days. days. days. days. months. 3i H 3i 3| 4 4 4 4 4 4i 4 4 4 4 44 4 4 4 4i 44 44 44 5 5 54 34 34 34 34 4 ACCEPTANCE 30 1 i i 1 1 60 90 15 30 60 90 34 34 34 4 44 34 34 34 4 44 34 34 34 44 44 3 34 34 34 4 3 34 34 34 4 3 34 34 34 4 34 34 34 34 4 15-day collator a notes. 34 n 34 34-4 BUSINESS. T h i s bank d u r i n g the year 1917 purchased a total of $29,732,271.79 bankers' acceptances. Of this amount $7,290,201.25 were purchased from member banks and $300,000 from nonmember banks in this district. T h e remainder was purchased mostly t h r o u g h the Federal Reserve B a n k s of New Y o r k and Boston. T h e rates on these acceptances ranged from 2^ to 4 per cent. MUNICIPAL, IVARRANTS. T h i s bank purchased d u r i n g 1917 a total of $1,005,000 p a r value municipal w a r r a n t s at rates r a n g i n g from 2^ to 3f per cent. 12 AlJ^NUAL REPOKT OF FEDERAL OVERDr^E RESERVE BANK OF ST. LOUIS. PAPER. T h i s bank has no overdue paper on hand. CHANGES IN T H E RESERVE POSITION OF T H E B A N K D U R I N G T H E YEAR. On December 31, 1916, our total reserve against all liabilities 60.8 per cent and on t h e same date this year the percentage 68.8 per cent. T h e following table shows the reserve position of the F e d e r a l serve B a n k of St. Louis at the close of each month d u r i n g year 1917: N e t deposits. J a n . 31.. Feb. 28. Mar. 3 1 . A p r . 30. May 31June30. J u l y 31 Aug. 31. S e p t . 29 Oct. 3 1 . N o v . 30, Dec. 3 1 . Outstanding Federal Reserve n o t e s . $28,525,372. 28 25,047, 603.63 912.36 29, 202, 21,856,045. 55 29,608,753.62 42,577,207. 10 43,955,240.90 41,197,416. 57 40,000,055. 31 42,842,016.77 51,159,449.41 40,659,878. 87 $15,960,305 14,989,370 14,160,270 15,061,770 15,767,670 17,346,870 18,674,970 21,694,020 26,970,205 40,207,655 54,080,240 59,923,030 Total. was. was Rethe T o t a l reserves. P e r c e n t . $44,485, 677. 28 40,036, 973.63 43,363, 182.36 36,917, 815. 55 45,376, 423. 62 59,924, 077.10 62,630, 210.90 62,891, 436. 57 66,970, 260.31 83,049, 671. 77 105,239, 689.41 100,582, 908.87 $33,821,401 28,053,259 32,950,862 25,199,942 30,427,185 47,179,671 49,186,340 46.562.675 43,942,323 56,745,832 77.647.676 59,136,094 76.0 70.1 75.9 68.3 67.0 78.7 78.5 74.0 65. e 68.3 73.8 58. & T H E FEDERAL RESERVE BANK: AND MEMBER B A N K S . CHANGES IN MEMBERSHIP - • - DUE TO TRANSFERS FROM AND TO OTHER DISTRICTS. T h e r e has been no change in membership in this district due t o transfers to and from other districts. T h e b o u n d a r y lines of t h e district have not been changed since originallj^ designated by t h e organization committee. i M O V E M E N T OF M E M B E R S H I P W I T H I N T H E DISTRICT. On J a n u a r y 1, 1917, the F e d e r a l Reserve B a n k of St. Louis h a d 469 member banks, consisting of 468 national banks and one t r u s t company. I t s authorized capital stock on t h a t d a t e was $5,599,500, of which one-half, or $2,799,750, was paid in. D u r i n g the year four national banks, nine State banks, and three t r u s t companies became members, increasing the authorized capital stock of this bank in the sum of $1,366,900. T h i r t y - t h r e e banks were allotted 279 additional shares of stock of this bank, which further increased its authorized capital $27,900. D u r i n g 1917 seven member banks holding a total of 426 shares of stock, surrendered their membership t h r o u g h liquidation, and t h r e e banks surrendered portions of their holdings a g g r e g a t i n g 25 shares A N N U A L REPORT OF FEDERAL RESERVE B A N K OF ST. LOUIS. 13 on account of reductions in their capital or surplus, thereby decreasing the capital stock of this bank in the sum of $45,100. A t the close of 1917 this bank h a d a total of 478 member banks, consisting of 465 national banks, nine State banks, and four t r u s t companies, and its authorized caj^ital was $6,949,200, of which $3,474,600 was paid in. This shows a net increase of nine in the number of member banks, and a net increase in the paid-up capital stock of $1,349,700 over 1916. R E L A T I O N TO N A T I O N A L B A N K S . I t is believed t h a t all the national banks in this district, t h r o u g h daily contact with this bank, b r o u g h t about by its clearing system which in some form h a s been in operation practically since the opening of the bank, have been b r o u g h t into closer relation with it. W i t h banks t h a t have rediscounted with us, any idea of " red t a p e " which onc^ existed, has disappeared, and they find t h a t they can do their business with us as easily as they have conducted their business with other banks. On the other hand, this bank has always taken the position that, even though its member banks must keep deposits with us, under the law, nevertheless, it should make every consistent effort to please its customers just as if it were a commercial bank competing for deposits. STATE B A N K S A N D TRUST C O M P A N I E S . D u r i n g the year 1917 twelve State banks and trust companies have taken stock in the Federal Reserve B a n k of St. Louis. They a r e : D a t e of admission . Apr. May May June July Oct. Oct. Nov. Oct. Nov. Dec. Dec. 12,1917 4,1917 31,1917 9,1917 2,1917 10,1917 30,1917 2,1917 31,1917 15,1917 15,1917 20,1917 Location. Name. St. L/OUis U n i o n B a n k . . , Mississippi Valley T r u s t Co International Bank G e r m a n Sa\angs I n s t i t u t i o n German Insurance Bank L a f a y e t t e S o u t h Side B a n k Franklin Bank German-American B a n k Union & Planters Bank & Trust Co.. Paoli S t a t e B a n k S t a t e Savings L o a n & T r u s t Co Effingham S t a t e B a n k . S t . L o u i s , Mo do do do Louisville, K y S t . L o u i s , Mo do do Memphis, T e n n Paoli, I n d Q u i n c y , 111 Effingham, 111 Capital a n d surplus. T o t a l resources. $5,000,000.00 $45,530,370.33 6,500,000.00 31,297,412.73 1,000,000.00 8,100,583.91 2,500,000.00 21,243,246.09 750,000.00 8,470,284.18 1,200,000.00 13,264,217.67 1,300,000.00 9,478,230.67 1,700,000.00 9,915,950.37 1,600,000.00 15,307,795.76 25,750. 00 191,074.49 1,000,000.00 7,947,274.67 60,000.00 677,843.72 P r i o r to the admission of the above, the Mercantile T r u s t Co. of St. Louis was the only State institution which was a member of the Federal Reserve Banl^ of St. Louis. I t has been a member of the Federal Reserve system ever since the system was established. The number of State banks and trust companies eligible for membership, by States, exclusive of those t h a t have already joined, are as follows: Arkansas, 177; Illinois, 172; I n d i a n a , 88; Kentucky, 1 0 1 ; Mississippi, 85; Missouri, 296; Tennessee, 54; total, 973. 14 A N N U A L REPORT OF FEDERAL RESERVE B A N K OF ST. LOUIS. On May 18, 1917, Mr. W. L. Hemingway, president of the Mercantile Trust Co. of Little Rock, Ark., called a meeting in that city of all the eligible State banks and trust companies in that State. The chairman of the board of this bank met with them and discussed the advantages of membership. I t is not an overstatement to say that since the President's appeal to nonmember banks to join the system practically all of the eligible State banks and trust companies in this district are giving the matter of membership serious consideration. ACCOMMODATION OF MEMBER B A N K S T H R O U G H DISCOUNTS. Below is given a table showing the number of different member banks offering rediscounts from each State each month during 1917^ the total number of different banks offering rediscounts from the whole district each month, the number and percentage of different banks offering rediscounts from each State during the year, and the number and percentage of different banks offering rediscounts in the Tvhole district during the year. M state. i Arkansas Illinois Indiana Kentucky Mississippi Missouri Tennessee Total S3 2 i 2 4 1 3 4 = 2 ft f 3 12 4 1 2 12 4 3 5 3 3 3 12 4 24 30 33 2 5 1 2 2 3 3 11 3 15 11 31 •i Q a 17 5 2 6 5 14 12 14 9 4 10 5 17 10 10 17 9 14 3 19 6 13 17 12 17 4 23 6 61 69 78 92 ft 5 6 <» CO »-» 2 3 o o o O 03 5 9 a . 03 bl) ••-133 I 9 7 4 4 3 14 3 7 7 3 6 3 10 4 44 40 > -(-a O EH 24 31 15 20 6 38 15 67 158 63 66 17 87 20 35.7 19.6 23.8 30.3 33.3 43.6 75.0 149 478 31.1 1 During the year 1916, 114 different member banks rediscounted with this bank. This year 149 different member banks rediscounted, showing an increase of 35 in the number of banks accommodated. This bank has continued the policy of requiring financial statements made either by the borrowers or by the borrowing bank in every instance where paper has been accepted by us, and this policy is resulting in the standardizing of credit in this district. BILL-OF-LADING DRAFTS. Since the 1st of February, 1916, this bank has handled bill-oflading drafts for its members, under conditions set forth in a cir-. cular issued January 29, 1916, giving member banks credit on receipt for drafts with bills of lading attached, and charging interest AINI^tJAL R E P O R T O F 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 . 15 at the rate prevailing for 30-day commercial paper for t h e time such d r a f t s have remained impaid. Although the member banks have not generally availed themselves of the service offered in this connection, the business for 1917 shows a very substantial increase over t h a t of 1916. Whereas, d u r i n g 1916 we handled 653 drafts amounting to $4,261,210.95, and on which we collected $2,854.96 interest, d u r i n g the present year, up to and including December 31, 1917, we have handled 1,453 drafts, amounting t o $10,431,334.21 and have collected interest amounting to $7,492.56. T h e greater p a r t of this increase occurred in the month of November^ d u r i n g Avhich month we handled 757 drafts amounting to $5,573,506.04, and collected $3,371.86 interest. A large p a r t of this business has consisted of New E n g l a n d cotton paper, and we have had excellent service from the banks in making collections. T h i s is indicated by the fact t h a t the average time outstanding has been only about five days, and this in spite of the fact t h a t a large proportion of the p a p e r was payable at sight in States A here three days of grace are allowed on sight drafts. A W e feel t h a t those of our members t h a t haA^e availed themselves of the facilities offered haA e appreciated the serAdce, and we anticipate a still greater increase d u r i n g the coming year. GRANTS OF FIDUCIARY POWERS. F r o m the establishment of the Federal Reserve S^^stem to the close of 1917 the applications of 29 national banks in this district for permission to act as trustee, executor, etc., under section 11 (k) of t h e Federal KeserA'e Act haAe been granted by the Federal Reserve Board. Sixteen of these permits AA^ere granted in 1915, six in 1916, and seA^en in 1917. Of those banks granted fiduciary poAvers, two are located in Arkansas,fiA^ein Illinois, six in I n d i a n a , eight in Kentuck3% seAen in Missouri, and one in Tennessee. Attached hereto, as E x h i b i t F , is a list of the national banks in this district Avhich have been granted fiduciar^^ poAvers up to December 31, 1917. BANK FAILURES AA^THIN THE DISTRICT. No member bank in this district failed d u r i n g the year 1917.. T H E LOUISVILLE BRANCH. On J u l y 3, 1917, the board of directors of the Federal ReserA^e B a n k of St. Louis granted the petition for a branch bank at Louisville^ K y . I t elected as directors representing i t : Mr. George W . Norton, director of the National B a n k of Commerce, LouisA ille, K y . ; Mr. W . C. Montgomery, vice president F i r s t - H a r d i n National Bank, 16 ANNXJAT^ REPORT OF FEDERAL RESERVE BAN^K OF ST. LOUIS. Elizabethtown, K y . ; and Mr. W . P . Kincheloe, until the time of his election a national bank examiner, living* in Louisville. This lastn a m e d gentleman was also appointed managei" of t h e branch. The F e d e r a l Reserve B o a r d appointed as directors Mr. F . M. Sackett, president of the Louisville B o a r d of T r a d e , Louisville, Ky., and Mr. C h a r l e s E . Hoge, president of the F i r s t State National B a n k , F r a n k fort, K y . Q u a r t e r s were secured on the second floor of the Fidelity & Columbia T r u s t Co. Building, northwest corner of Main and F o u r t h Streets, Louisville, and the bank opened for business on Monday, December 3, 1917. T h e Louisville branch collection zone covers the following t e r r i t o r y : AH cities in t h a t jjart of Kentucky included in the eighth F e d e r a l Reserve district and all cities located in the following counties in I n d i a n a , viz : Dubois, Jackson, Clarke, Perr3^ Lawrence, W a s h ington, Floyd, Orange, H a r r i s o n , Jefferson, Crawford, Scott, and Switzerland. M E M P H I S AGENCY. Last year d u i i n g the cotton season this bank had an agency in Memphis, Teim. This gave the local banks the service they desired a n d proved successful. T h i s year, on October 29, we opened the agency again and operated under the same plan. Notes, t r a d e acceptances, bankers' acceptances, and offerings for rediscount were sent direct by the bank to St. Louis, but AAarehouse recei|>ts that Avere u p as collateral to the loans were held by our agency. I n this way, substitution of cotton receipts was permitted without delay or inconvenience. I t is proposed to maintain the Memphis office until the close of the cotton season. T H E FKDEUAE RP^SEHVE B A N K AND TIIK PITBEK . " W i t h this war on us, Avhere would Ave lia\e been without the F\^deral Reserve system?" I n discussion of the general situation, an ^^xpression sinilar to this is often heard, and it states fairly Avell Avhat t h e general public thinks. The ma.n on the street feels t h a t the Federal Reser\^e system has saA^ed the country financially. I t is due to i t t h a t business has been able to go on unafraid. T h e Avar is on m i d business is active—in some lines it is at a high level. However, t h i s AA'ould not be the situation if it AAere not for the F e d e r a l Reserve isystem. T h e general public has thorough confidence in the F e d e r a l ReserA^e system, and banks t h a t are not members are beginning to i^eel this attitude. A N N U A L REPORT O F FEDERAL RESERVE B A N K OF S T . LOUIS. THE 17 FEDERAL, RESERVE B A N K AND T H E G O V E R N M E N T , GOVERNMENT DEPOSITS. The amount of GoAernment deposits held by the Federal Reserve B a n k of St. T^ouis d u r i n g 1917, while averaging slightly more t h a n in 1916, gives little indication of the volume of Government business actually taken care of b}^ this bank. From J a n u a r y to Jiuie normal conditions prevailed, the early p a r t of the year showing loss through withdrawals being heavier t h a n de^josits until the tax collection period caused a g r a d u a l increase. W i t h the commencement of Government loan operations came a gradual increase in balances during J u n e , followed by a decrease caused by heavy withdrawals culmin a t i n g Avith a loAV September balance. Operations in connection with the second Liberty loan resulted in increased funds, October and November showing the highest figures for the year. T h i s last half of the 3^ear's business was abnormal in all respects. I t s volume can be expected to continue while Avar loans are being placed^ and doubtless afterAAards much AA'ill be retained t h r o u g h bond coupon maturities and taxation. RELATION TO T H E UNITED STATES TREASURY. Transfers of funds and deposits on account of 5 per cent redemj)tion funds haA^e continued to increase throughout the year. . T H E LIBERTY LOAN. • T H E FIRST LIBERTY LOAN. T h e first AAar b o n d issue hiAA^ Avas approA ed b y t h e P r e s i d e n t on A p r i l 24, 1917, a n d Avhen t h e S e c r e t a r y of t h e T r e a s u r y a d v i s e d t h i s b a n k t h a t t h e h a n d l i n g of t h e l o a n i n t h i s d i s t r i c t w a s t o be t a k e n c a r e of t h r o u g h it, s t e p s w e r e t a k e n t o o r g a n i z e t h e d i s t r i c t . On M a y 10, M r . R o l l a W e l l s , gOA^ernor 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 , a p p o i n t e d as a n executiA e c o m m i t t e e t h e p r e s i d e n t s of t h e 18 c l e a r i n g - h o u s e associations i n t h e d i s t r i c t , a n d also representatiA^es f r o m 5 o t h e r cities l o c a t e d i n p o r t i o n s of t h e d i s t r i c t w h e r e t h e r e w e r e n o c l e a r i n g houses. H e also a p p o i n t e d a c e n t r a l c o m m i t t e e , comp o s e d of 9 m e n liAnng in S t . L o u i s , w h o w e r e t o g i v e all of t h e i r t i m e t o t h e p l a c i n g of t h e first L i b e r t y l o a n . Q u a r t e r s w e r e g i v e n t h e c e n t r a l c o m m i t t e e in t h e C h a m b e r of C o m m e r c e of S t . L o u i s , a n d t h e y occujDied desks t h e r e . T o each m e m b e r of t h e executiA^e c o m m i t t e e Avere a s s i g n e d t h e counties c o n t i g u o u s t o h i s c l e a r i n g - h o u s e city or l o c a l i t y , a n d in t h i s w a y t h e w h o l e d i s t r i c t Avas a p p o r t i o n e d . E a c h m e m b e r of t h e executiA^e c o m m i t t e e in t u r n a c t e d as c h a i r m a n of h i s d i s t r i c t a n d 54008—18 3 18 A N N U A L REPORT OF FEDERAL RESERVE B A N K OF ST. LOUIS. appointed such a committee from the locality to work with h i m as he t h o u g h t wise. T h e r e Avas t h e n figured the proportion of t h e $2,000,000,000 3^ per cent issue which should be taken by district No. 8 in ccmiparison AA'ith the A hole United States, on three different A bases: (1) B a n k i n g strength basis, AAhich made t h e district's p r o portion amount to $8-1,300,000; (2) wealth basis, Avhich made the district's proportion amount to $58,600,000; (3) population basis, AAdiich made the district's proportion amount to $174,600,000. T h e b a n k i n g strength basis A\ as decided on as the m i n i m u m a m o u n t for subscriptions to be obtained, a n d the average of the three bases as a target. There Avas then figured on the same three bases t h e amount t h a t each county hi the district should subscribe of the a m o u n t AAhich it seemed fair that district No. 8, as a AAdiole, should take. E a c h chairman of a local district AA^as a d \ i s e d as to t h e amounts arrived at for the counties under his supervision, and i t Avas suggested t h a t the figures giA^ing the banking strength basis, the Avealth basis, and the population basis be added and diAdded by three in order t o arriA e at the amount for Avhich his different counties should subsci'ibe. I^ater, Ave Avere advised from W a s h i n g t o n that it A as estiA mated that our subscription should amount to between $80,000,000 and $100,000,000, which A as somewhat less t h a n the figures A ^ h a d A Ae already established. T o the first Liberty loan this district subscribed an aggregate of $86,134,700, and Avas allotted a total of $65,469,600, the allotment by States being as follows: Arkansas Illinois Indiana Kentncky INIississippi INIissouri : St. L o u i s Klsewhore Tennessee Miscellaneous i $4. 202. 750 5, 667, 650 4, 253, 050 1 1 , 997, 950 875, 900 : ^ . ., , --_ . Total $81, (>a8. 950 t, 349. 350 — 35. .388. 300 3, 082, 100 2, 800 65. 469, 600 T r i E SECOND I ^ I B ? : K T Y I>OAX. F o r the second I^iberty loan the district was organized on someAAhat different lines. Mr. Eolla Wells, goAernor of the bank, appointed three committees: A genei'al committee, composed of 38 men representing different toAvns throughout the district, of Avhich committee Gov. Wells acted as c h a i r m a n ; an executiAo committee, composed (f irJO men residing throughout the district, and an administratiA'e committee of l'^> men, all of whom were brokers oi- bankers of A N N U A L BEPORT OF FEDERAL RESERVE B A N K OF ST. L O U I S . 19 St. Louis. } T h e administrative committee was in t u r n divided into subcommittees, such as purchasing supply committee, etc. T h e general committee, appointed at the request of the Secretary of the Treasury, served as advisory council. The executive committee, consisting principally of members of the general committee, also served in an adAdsory capacity. The administrative committee was responsible for the active conduct of the campaign. Of both this committee and the executive committee Mr. W. R. Compton Avas chairman and Mr. T. K . Smith, secretary. The members of the administratiA e committee were volunteers and devoted their entire time to the work. I n order t h a t the entire membership of this last-named committee should be available w^henever needed, there was rented for the Liberty loan organization 18 rooms on the tenth and sixteenth floors of the Boatmen's B a n k Building, as well as a practical store room on the ground floor. Quarters on the fourteenth floor of the same Duilding were secured for the women''s Liberty loan committee. Those who serA^ed on the committees and all others wdio gaAe their serA^ce are entitled to the highest x^raise for the abandonment AAith which they treated their respectiAe businesses and gaA^e their entire energies AA-ithout compensation to make the Liberty loan a success. Both the men and w^omen who serA^ed have the satisfaction of knoAVing t h a t they have h a d a most honorable p a r t in the serA^ice of their country in this time of its necessity. Of this $3,000,000,000 issue, the minimum suggested for district No. 8 Avas $120,000,000, with a maximum of $200,000,000. The eighth district subscribed to the second Liberty loan to the amount of $184,280,750, Avhich was $64,000,000 more t h a n the minimum suggested. T h e district Avas allotted $150,169,250. The folloAAdng table shows subscriptions and allotments to the second Libertv loan bv S t a t e s : Subscriptions through— state Arkansas Illinois Indiana Kentucky.... Mississippi... Missouri: St. I^ouis. Elsewhere Tennessee Total... Subscriptions. Allotments. Number of s u b scribers. Member banks. Nonmember banks. $12,878,050 22,119,150 11,711,400 22,442,950 6,088, 200 S12,473,650 21,406,550 11,604,900 20,387,600 5,787,100 33,717 54,125 26, 880 54, 483 11,119 67 154 60 66 17 422 380 134 276 167 74,464,600 20,679,000 13, 897,400 47, 707, 800 20,551,600 10,250,050 123, 484 56,203 25,688 15 71 19 29 979 114 184,280,750 1 150, 169,250 I 385,699 4(>9 2. 501 20 A N N U A L BEPORT OF FEDERAL RESERVE B A N K OF ST. LOUIS. I n the above table, in order to get the number of subscribers and subscrij^tions sent t h r o u g h member and nonmember banks it w a s necessary to address an inquiry to the 3,085 banks in this district. A t this w r i t i n g replies have been received from all but 115, and probably when they come in they will show more banks as h a v i n g taken some p a r t in the Liberty loan. The above table shows t h a t of the 479 member banks in the district 469 sent in subscriptions, and out of a total of 2,606 nonmember banks 2,501 sent in subscriptions. F r o m the above it is seen t h a t there were 385,699 subscribers to the second Liberty loan in this district. TREASURY CERTIFICATES OF INDEBTEDNESS. T h r o u g h T r e a s u r y certificates of indebtedness, which could be used in payment of subscriptions for Liberty bonds, the payments were distributed and the liability of disturbance, Avhich m i g h t have occurred if payments on account of bonds had had to be made all at once in cash, was avoided. T h e following table shows certificates of indebtedness issued t h r o u g h this bank in anticipation of the first Liberty loan sold in this d i s t r i c t : | Treasury Dated. certificates Due. Rate. J u n e 30 J u l y 17 J u l y 30 ...do A p r . 25 M a y 10 M a y 25 of indebtedness, Per cent. 3 3 3i 3i Offering. S200,000,0<X) 200,000,000 200, 000, 000 200, 000, 000 first Liberty Subscriptions. loan. Allotment. $10,400,000 7,045,000 9, 972,000 9,308, 000 $10, 400,000 7, 045,000 7,200,000 8,100,000 Number ol s u b scribers . 142 131 132 116 32, 745,000 Total The certificates of indebtedness issued in anticipation of the second L i b e r t y loan sold in this district were as follows: Treasury certificates of indebtedness, second Liberty Dated. Aug. 9 A u g . 28 S e p t . 17 S e p t . 26 O c t . 18 O c t . 24 Total Due. Nov. Nov. Dec. ...do Nov. Dec. 15 30 15 22 15 Rate. Per cent. 3i 3i 3i 4 4 4 Offering. $300,000,000 2.50,000,000 300,000, 000 400,000,000 300,000, 000 685^000,000 Subscriptions. m, 599, 000 5,176,000 4,874,000 11,000,000 12,710,000 5,028, 000 loan. Allotment. $7, 900,000 4,188,000 4,874,000 11,000,000 12,710,000 5,028,000 45, 700,000 Number of s u b scribers. 116 85 63 239 208 107 A N X U A L REPORT OF FEDERAL RESERVE BAI^K OF ST. LOUIS. 21 T h e Federal Reserve B a n k of St. Louis subscribed for its own account only to four issues of the certificates of indebtedness, and sold all of these before they matured, except $'249,000 of the issue dated September 17, 1917, and m a t u r i n g December 15, 1917. E x h i b i t G shows the distribution of all certificates of indebtedness, classified by amounts, which were allotted t h r o u g h the bank. I t also shows the amounts taken by this bank for its own account and amounts it disposed of by sale before maturity. T h e Federal Reserve Bank of St. Louis did not purchase for its own account any bonds of either the first or second issue of the Liberty loan. A t the close of business December 31, 1917, its loans secured by Liberty bonds and certificates of indebtedness were as follows: Rediscounts m a t u r i n g in 90 days, secured by IJberty bonds and certificates of indebtedness .$1,418,470.33 Member banks 15-day colluteral notes secured by I^ii)erty bonds and certificates of indebtedness 7.-547,800.00 Total .—^^j 8, 966, 270. 33 Of the first Liberty loan this district took $65,469,600, and of the second Liberty loan $150,169,250, making a total of Liberty bonds to the amount of $215,638,850. As the year closes, of this amount the Federal Reserve B a n k owns none, and on December 31, 1917, held loans to member banks on Liberty loan bonds and certificates of indebtedness as collateral to the extent of only 4 per cent of the total bonds sold in the district. DEPOSITARIES OF OOVERKMENT FUNDS IX CONXECTIOX WITH SUBSCRIP- T I O N S FOR I^IBERTY B O N D S . Such banks as desired were authorized by the Secretary of the T r e a s u r y to make application to him t h i o u g h the Federal Reserve Bank to be named as depositaries of funds arising from subscrii^tions to both the first and second Liberty loans. The bank passed on all the collateral offered, and there was so nuich work to be done t h a t it established a department. I t had custody of the collateral, ]Derformed all duties incident to the deposit and withdrawal of funds, collection of interest, accounting, etc. The largest amount of collateral in its custody at any one time was on Xovember 15, 1917, when it amounted to $60,100,000. P:XPENSE OF FISCAU AOENGY OPERATIONS. I n order to do the work as fiscal agent for the Go\ ermnent it has been necessary to increase our force very materially. There are engaged in the dei^artment Avhich is giving its exclusive attention to duties incident to the fiscal agency 66 employees. 22 AiSr:N^UAT^ R E P O R T OF FEDERAL RESERVE B A N K OF ST. LOUIS. T h e bank has incurred as fiscal agent of t h e O o v e r n m e n t expenses amounting to $101,516.36, for Avhich it has been reimbursed to t h e extent of $66,666.89. RELrATIO:^ TO T H E COJMPTROLLER'S OFFICE. D u r i n g the past year t h e comptroller's office and this bank have continued to cooperate w^ith each other in every Avay possible. Copies of reports of examinations of national banks, made under the supervision of t h e chief examiner of this district, have been p r o m p t l y filed with t h e Federal Reserve agent. T h e chief examiner a n d his assistants have given such other help as was in their power. T H E F?:DERAL RESERVE B A N K AND N O T E ISSUES. GENERAL POLICY I N T H E MATT^ER OF NOTE ISSUES. D a r i n g the past year t h e F e d e r a l Reserve B a n k of St. Louis h a s continued its policy of last year. I t h a s issued Federal Reserve notes freel3^ whenever there was a possibility of conserving gold or reserve money by their use. SUBSTITUTION O F F E D E R A L RESERVE N O T E S MEDIUM. FOR GOLD .VS C I R C U L A T I N G Considerable progiess has been made in substituting F e d e r a l R e serve notes for gold. A t the end of last year it Avas not uncommon to find gold certificates paid out over the counter to customers of banks. As this year ends there are A erv fcAV banks, if anv, in t h e large centers or, in fact, t h r o u g h o u t the district t h a t p a y out gold indisci'iininately. Practically all t h e member banks a n d m a n y of the nonmembers have deposited their gold with u s and taken F e d e r a l Reserve notes in exchange. I t Avould seem t h a t to a very great extent the gold of the district has been turned over to t h e F e d e r a l Reserve Bank. COVER O F N O T E S I S S U E D . On December 81, 1917, the total amount of Federal Reserve notes of this bank outstanding was $61,863,430. Of this amount $32,366,430 Avere covered by gold deposited A ith the Federal ReserA e agent a n d A $29,497,000 by eligible jjaper hypothecated Avith him. T h i s b a n k ' s liability on Federal Reserve notes in actual circulation at t h e close of the vear amounted to $59,923,030. D E N O M I N A T I O N S OF NOTES ISSUED. Attached hereto, as E x h i b i t H , is a table showing the amount of each denomination of Federal ReserA e notes issued by t h e F e d e r a l ReserA^e agent to the F e d e r a l ReserA e B a n k of St. Louis each m o n t h A N N U A L REPORT OF FEDERAL RESERVE BANK OF ST. L O U I S . 28 from the opening of the bank, November 1(), 1914, to December 31, 1917. A n examination of this table will disclose the fact t h a t d u r i n g this 3^ear the greatest demand has been for Federal Reserve notes of the $10 and $20 denominations. T h i s was due, no doubt, to the fact t h a t the greater number of gold certificates of these denominations outstanding have been turned in to the F e d e r a l Reserve Banks, and Federal Reserve notes of similar denominations were needed by the public. Also, notes of these denominations were used to a great extent by the Government in meeting its A r m y pay roll. As was the case in both 1915 and 1916, the demand for Federal Reserve notes was heaviest in the months of September, October, and November. I N T E R D I S T R I C T M O V E M E N T OF N O T E S . D u r i n g the year 1917 the Federal Reserve B a n k of St. Louis received from other Federal Reserve Banks $3,344,960 of its own Federal Reserve notes and returned to other Federal Reserve Banks $7,979,770 of their Federal Reserve notes. I n other words, this bank returned $4,634,810 more notes of other banks t h a n it received of its own. As was the case in 1916 the Federal Reserve Banks of Chicago and New York sent to us d u r i n g 1917 for redemption more of our notes t h a n any other districts, and we returned for redeinption more notes of the Kansas City and Dallas Federal Reserve Banks t h a n of any other districts. Attached hereto, as Exhibit I, is a statement showing the amounts of Federal Reseive notes of this bank received from other Federal Reserve Banks for redemption or credit, and notes of other Federal Resei've Banks returned by this bank to them for redemption or credit, from J a n u a r y 1, 1917, to December 31, 1917. R E D E M P T I O N A N D D E S T R U C T I O N OF N O T E S . D u r i n g 1917 the Treasurer of the United States redeemed out of the redemption fund maintained with him by the Federal Reserve agent, $5,816,300 of unfit notes of the Federal Reserve Bank of St. L/Ouis. F r o m the opening of the bank to December 31, 1917, $8,426,570 of unfit notes have been redeemed, being of the following denominations: Fives, $3,780,950; tens, $3,167,010; twenties, $1,436.510; fifties, $40,500; hundreds, $1,600. These Avere turned over to the Comptroller of the Currency and destroyed. Of the unfit Federal Reserve notes redeemed by the United States Treasurer $5,365,000 were shipped to h i m by the Federal Reserve B a n k of St. Louis, and $3,061,570 were shipped by other parties. Out of the redemption fund maintained by the Federal Reserve Bank of St. Louis with the United States Treasurer, he redeemed 24 A N N U A L R E P O R T O F FEDERAL RESERVE B A N K OF S T . L O U I S . $1,123,600 of fit notes d u r i n g 1917, m a k i n g a total of $1,953,750 from the opening of the bank to the close of 1917. These were returned to the bank and again p u t into circulation. COST OF FEDERAL RESERVE NOTES. T h e total cost to this bank of the Federal Reserve notes issued d u r i n g 1917 was $49,363. T h i s is figured on a basis of 1 cent per note, and does not include the cost of s h i p p i n g Federal Reserve notes to W a s h i n g t o n by this bank or other parties for redemption and the r e t u r n of fit notes to this bank. D u r i n g the past year it has cost this bank $1,228.84 for the r e t u r n of its Federal Reserve notes to t h e U n i t e d States Treasurer for redemption. FEDERAL RESERVE B A N K NOTES. T h e Federal Reserve B a n k of St. Louis has not as yet issued anv circulating notes secured by United States Government bonds. FEDERAL RESERVE AGENT AND NOTE ISSUES. D u r i n g the year shipments of Federal Reserve notes a g g r e g a t i n g $50,560,000 were received by the F e d e r a l Reserve agent, the majority being received d u r i n g September, October, and November, when there was a heavy demand for notes in this district. Since the first of the year, in addition to the supply of notes kept in the vaults of the Federal Reserve agent, a iarge supply has been maintained in the subtreasury at St. Louis. T h i s was of considerable assistance in meeting the great demand this year. Attached hereto as E x h i b i t J is a statement of F e d e r a l Reserve notes received by the Federal Reserve agent from the Comptroller of the Currency each month from the opening of the bank to December 31, 1917. There is also attached as E x h i b i t K a summarized statement of the receipt and disposition of all Federal Reserve notes by the Federal Reserve agent from the opening of the bank t o t h e end of 1917, as well as of all funds and securities in his possession. Since the passage of the amendment to section 16 of the F e d e r a l Reserve Act on J u n e 21, 1917, all Federal Reserve notes, gold, and gold certificates in the possession of the Federal Reserve Agent have been held jointly Avith the Federal Reserve Bank of St. Louis. I N T E R N A L MANAGEMEXT OF T H E B A N K . The directors of this bank have held meetings on the first and t h i r d Wednesdays of each month at 10 oVlock a. ni. throughout the year. There has been a total of 23 meetings, at all of whii^h there was a quoriun present. A:NNUAL REPORT OF FEDERAL RESERVE B A N K OF ST. LOUIS. 25 T h e executive committee, composed of the governor of the bank, chairman of the board, and Messrs. W a l k e r Hill, F . O. W a i t s , and D. C. Biggs, has met on Monday and F r i d a y of each week throughout the year at 10:30 a. m. All offerings come first before the officers' committee, composed of all the officers of the bank, which meets daily. Offerings passed by this committee are immediately credited to the offering bank's account. These are in t u r n reported to the executive committee at its next meeting, and the full minutes of the executive committee are always read at the meeting of the board of directors. I n 1916, Mr. Sam A. Ziegler, of Albion, 111., was elected by group No. 3 as a class A director to serve for three years from J a n u a r y 1, 1917, to succeed Mr. Oscar Fenley. Mr. W . B . P l u n k e t t , of Little Rock. Ark., was elected bv group No. 2 as a class B director to succeed himself, to serve for three years from J a n u a r y 1, 1917. A t the election which took place in December of this year, Mr. Walker Hill, of St. Louis, was elected by group No. 1 as a class A director to succeed himself, to serve for three years from J a n u a r y 1, 1918. Mr. LeRoy Percy, of Greenville, Miss., was elected by group No. 3 as a class B director to succeed himself, to serve for three years from J a n u a r y 1, 1918. The lists of banks m a k i n g up groups 1 and 3 were sent out on September 27, 1917, giving a]3proximately one and one-half months in which banks interested could certify their electors and make nominations. However, of 154 banks in g r o u p 1, only 88 voted. I n group No. 3, of 162 banks, only 42 voted. On August 2, 1917, Mr. C. P . J . Mooney, of Memphis, Tenn., was appointed by the Federal Reserve Board as a class C director of this bank, to serve for three years from J a n u a r y 1, 1917, to fill the vacancy which h a d existed from the beginning of the year. T h i s bank has been represented on the Federal Advisory Council by Mr. F . O. W a t t s , of St. Louis. CHANGES IN PERSON N EI, AND I N THE O R G A N I Z A T I O N OF T H E M E N T S , I N C L U D I N G T H E F E D E R A L RESERVE AGENT'S DEPART- OFFICE. On J a n u a r y 3, 1917, the same officers who served d u r i n g 1916 were reelected, and Mr. O. M. Attebery was elected assistant cashier. On A p r i l 4, 1917, the board of directors elected Mr. R. R. Clabaugh as assistant cashier, and on J u l y 18, 1917, the board of directors appointed Mr. A. H . Haill, the auditor, as an assistant cashier, and appointed Mr. J o h n A. Will as auditor to succeed Mr. Haill. A t the end of last year, the bank had 53 employees on its pay roll. A s this year closes it has 171, of whom 66 are employed exclusively in the Liberty loan department. I n order to handle the work in 26 A2Sri!^UAL R E P O R T O F F E D E R A L R E S E R V E B A N K OF ST. L O U I S . cident to acting as fiscal agent for the ITnited States Government it was necessary to organize a distinct department. T h i s bank has grown very rapidly d u r i n g the year, especially in the latter p a r t . On A u g u s t 2, 1917, Mr. C. M. Stewart, who has been with t h e bank since its organization, was ap]iointed assistant F e d e r a l Reserve agent. . 1 ! OFFICE AND VAULT FACILITIES BANK PREMISES. A t the close of 1910, our office facilities were so ample t h a t we did not ex^Dect to be crowded for some years, but as this year closes we are crowded for working space in our bank room and have h a d to get quarters on the fourth floor of the P^ederal Reserve B a n k Building for the use of our Iviberty loan organization. I n order to get the necessary space, we have arranged to take the second and t h i r d floors of an adjoining building, which will open into the Federal Reserve B a n k Building. This building has but recently been vacated, and our IICAV quarters are being remodeled. O u r vault room has also proven inadequate, and we have been compelled to rent temporarily additional vault space in order to care for interim certificates and Liberty loan conversion 4s. W e are now prejiaring to rearrange our p e r m a n e n t vault in the basement of our building, and belieA^e t h a t when this is done we shall have sufficient vault room. T H E CLEARING PROBLEM. T h e clearing plan proposed by the F e d e r a l Reserve B o a r d which went into effect on J u l y 15, 1916, h a s continued t h r o u g h o u t the year 1917 with very satisfactory results. T h e volume of business h a n d l e d and the number of State banks clearing at p a r for us are constantl^^ increasing. Attached hereto, as E x h i b i t L, is a table showing the operations of our present clearing system. CLEARING HOUSE CHARGES. D u r i n g the year 1917 changes in clearing-house rules r e g a r d i n g exchange charges haA e been few and of little importance. F E D E R A L RESERVE E X C H A N G E A N D T R A N S F E R D R A F T S . On J u n e 1, 1917, w^e put into effect a plan proposed by the F e d e r a l Reserve Board, whereby member banks could, under restrictions and regulations outlined in a circular issued by us, draw upon this bank and the drafts thus d r a w n be received at p a r without time deduction by other Federal Reserve Banks. While this plan made it possible for our member banks to issue exchange on us available at p a r without time deductions in all reserve A N I ^ U A L i B E P O R T O F F E D E R A L R E S E R V E BAISTK O F S T . L O U I S . 27 districts, our member banks have not availed themselves of these facilities. SERVICE R E N D E R E D TO T H E B A N K S B Y T H E GOLD S E T T L E M E N T FUND. T h e gold settlement fund continues as an ideal settlement medium for exchange operations and as a stabilizer of the exchange market. T h e great volume of exchange handled d u r i n g the current year by t h e Federal Reserve B a n k testifies to the success of this feature from the standpoint of member banks. COLLECTION DEPARTMENT. On August 25, 1917, this bank issued a circular advising t h a t on September 1 it would establish a department for the h a n d l i n g of m a t u r i n g notes and bills, coupons, and other s t r a i g h t collection items. Although the member banks have not generally taken advantage of the opportunity to handle items of the prescribed nature through this bank, the business has been increasing slowly, as shown by the fact t h a t d u r i n g the month of September we handled 200 collection items, amounting to $548,214.40, against 400 items in October, amounting to $932,294.67, 456 items in November, amounting to $1,329,726.17, and 473 items in December, a m o u n t i n g to $1,479,765.68. T h e greater p a r t of this business has consisted of checks of large amounts drawn on banks outside of this district, which, for one reason or another, the indorsing banks have preferred to handle as collection items r a t h e r t h a n as cash items. All items handled t h r o u g h this department are sent to banks in the cities where they are payable and the collecting banks are requested, if they find it inconvenient to remit in St. Louis exchange, to remit to the F e d e r a l Reserve B a n k of their district for our account. T h e service we have obtained from other banks has been good, and returns have been made promptly. S U M M A R Y ON CONDITIONS I N DISTRICT NO. 8. Reviewing the year 1917, the conclusion must be reached t h a t in spite of the war, it has been a prosperous one for district No. 8. T h e agricultural sections have all received high prices for their products, and in the majority of lines, manufacturers, wholesalers, and jobbers are doing an active business. T h e r e is confidence in the future. T h e w a r is making itself felt more and more in the manner of living, and the necessary conditions are being met by the people, not g r u d g ingly, but in a spirit of cheerfulness. There is a shortage in sugar, a shortage in coal, and transportation facilities are r a t h e r chaotic. The Federal Reserve B a n k of St. Louis has met adequately all demands made upon it. I t has created confidence, stabilized busi 28 A N K U A L REPORT OF FEDERAL RESERVE B A N K OF ST. LOUIS. ness, and has done its share in the flotation of the two Liberty loans without undue disturbance to the general situation. EXHIBIT penses 1917. A.—Condensed co)nijarative statement of Federal Reserve Bank of St. Louis January 1916. $9, 168. 57 Earnings $15, 990.14 Expenses $6, 821. 57 Loss Gain P e r cent e x p e n s e t o e a r n i n g s . . . 174.40 1917. $31,399. 97 Earnings $12, 428.15 E xpenses Loss $18,971.82 Gain 39.58 P e r cent e x p e n s e t o e a r n i n g s . . . of current earnings each month during and ex1916 and February. March. April. May. .$11,132.34 $15, 637. 94 $4, 505. 60 $13, 847. 85 $15, 559. 45 $1,711.60 $14, 202. 08 $16, 018. 68 $1,816.60 $17,118.22 $15, 929. 75 $19,076. 24 $15, 283.13 155.80 112. .36 112.79 $188. 47 93.06 $3,793.11 80.12 $31,283.50 $12, 183.17 $33,052.05 $11,377.53 $35, 945. 97 $11,677.40 $43,806. 20 $15, 227. 79 $47,166. 86 $14,494. 87 $19,100. 3 ^ $21, 674. 52 $24, 268. 57 ; 39.00 34.42 32.48 June. i, 578. 41 34.77 $32, 671. 99 30.73 July. August. September. October. November. $24,960. 14 $16, 323. 98 $28, 781. 67 $14, 283. 68 $33, 071. 33 $19,702.08 $32, 098.37 $18, 249.10 $38,122. 95 $14,921. 77 $8, 636.12 65. 40 $26,705. 63 $14, 598. 80 $12, 106. 83 54.64 $14,497.99 49.63 $13,369.25 59.57 $13,829.27 56.85 $23,19 i . i s 37.35 $53, 280. 88 $16, 194.15 $55, 826.44 $15,960.52 $66, 899. 76 $19,882.94 $91, 292. 85 $33, 689. 96 $96,823.68 $34, 034.48 $151,935.02 $39, 392. 94 $37, 086. 73 Loss 30. 39 Per cent expense to earnings... $39, 866. 12 28.60 $47, o i e . 82 29.72 $57, 602. 89 36.90 $62, 789.20 35.16 $112,542.08 25.93 December. 1916. Earnings • Gain Per cent expense to earnings... 1917. I n c l u d i n g a m o r t i z a t i o n of organization e x p e n s e . EXHIBIT B.—Comparative statement ro •: n ; : k I of condition, 1916-17 Dec. 31, 1916. D e c . 31, 1917. RESOURCES. Bills d i s c o u n t e d , m e m b e r s Bills d i s c o u n t e d , other F e d e r a l R e s e r v e B a n k s . Bills b o u g h t i n o p e n m a r k e t Investments-municipal warrants Bills of l a d i n g drafts United States bonds U n i t e d S t a t e s gold notes T o t a l e a r n i n g assets, P r e m i u m on U n i t e d S t a t e s b o n d s I n t e r e s t a c c r u e d on U n i t e d S t a t e s b o n d s Furniture and equipment Cost of u n i s s u e d F e d e r a l Reserve notes Expenses paid in advance D u e from m e m b e r b a n k s , overdrafts E x p e n s e s d u e as fiscal agent from U n i t e d S t a t e s T r e a s u r y . Total. D u e from F e d e r a l R e s e r v e B a n k s , D u e from Louisville b r a n c h . . . . . . Deferred d e b i t s , t r a n s i t a c c o u n t . . E x c h a n g e for clearing house T o t a l d e d u c t i o n s from gross deposits ,300,711.54 7,036,819.35 575,879. 71 71,067.46 2,202,900.00 891,000.00 $28,584,397.60 4,875,838.00 7,362,724.15 566,536. 89 2,233,400.00 1,444,000.00 12,078,378.06 45,066,896. 64 17,303.15 19,161.17 28,688.75 19, 763. 00 849.30 15,595.22 6,353.15 24,850.94 44,498.74 16,166. 61 1,626.51 124,849.47 101,360.59 218,345.42 20,389,339.94 3,065,478.15 15,221.21 36,678,287. 04 261,950,52 13,715,178.67 514,252. 43 23,470,039. 30 51,169,668.66 ANNUAL. BEPORT OF FEDEBAL. BESEBVE BANK OF ST. LOUIS. EXHIBIT B.—Comparative statement of condition, 29 1916-17—Continued. D e c . 31,1916. $11,088,000.00 3,395,000.00 254,850.00 12,542,730.00 D e c . 31,1917. 1,449,273.00 $5,089,137.50 17,884,000.00 923, SOO. 00 32,366,430. 00 2,100,000.00 766.626.50 28,729,853.00 59,136,094.00 806,435.00 431,445.00 321.08 2,047,705.00 1,980,400.00 787.24 Total other cash. 1,238,201.08 4,028,892.24 Total resoiu-ces.. 65,617,832.03 159,619,896.96 2,799,750.00 12,748.15 26,791.25 1,601.14 3,474,600.00 230,338.58 133,422.20 853.65 2,614,398.56 12,332,388.18 30,924,920.84 5,430,359.99 30,445,011.49 Gold coin a n d gold certificates Gold settlement fund Gold redemption fund. United States Treasurer. Gold deposited with Federal Reserve agent Sterling gold account Other lawful money Total reserve cash. National-bank notes and Federal Reserve notes, other banks. Federal Reserve notes on hand Nickels and cents LIABILITIES. Capital paid in Undivided profits Unearned discount and interest. Reserved for sundry e x p e n s e s . . . United States Government deposits D u e to Federal Reserve B a n k s D u e to member banks Due to nonmember banks—clearing account. Deferred credits—transit accoimt Dividend and expense checks 15,430.91 Total reserve against net deposit and Federal Reserve note liabilities per cent. C.—Comparative proftt-and-loss statement, 61,863,430.00 65,617,832.03 Total liabilities. 93,917,252.53 16,889,730.00 Federal Reserve notes issued. 93,4 52.34 11,954,257.21 197,223.90 45,887,208. 49 Gross deposits EXHIBIT 159,619,896.96 60.8 59.8 1916 and J a n . 1 to Dec. 31, 1916. Earnings from: Bills discounted, members Bills discounted. Federal Reserve banks. Bills purchased, acceptances United States securities Municipal warrants.Exchange Bill of ladiniT drafts Appreciation on United States bonds Depleted reserve penalties Profit on United States securities sold Sundry profits Transit department income (net) Total. Expenses: Current expenses '. Federal Reserve Board assessments Cost of Federal Reserve currency issued. Total. Profit on operation 1914-15 organization expense amortization. Surplus available for dividends Dividend paid Undivided profits for year Undivided profits for previous years. Total undivided profits 45,796,9.&1.60 $46,041.34 81, 598. 79 70, 362.41 31, 618. 94 30, 000.00 2, 782. 73 17, 873.14 2, 036. 01 3, 776.50 68.67 11, 790.08 1917. J a n . 1 to Dec. 31, 1917. $347,871.10 10,367.40 170,233.28 110,-300.98 13,091.40 57,919.95 7,492.56 14,968.34 l,2a3.28 4,665.13 297,948.61 738,713.38 136,461.44 9, 749. 62 10, 720.00 174,461.12 12,733.22 49,363.00 1.56,931.06 230,557.34 141.017.55 97,169.29 502,156.04 43,848. 26 31,100.11 502,1.56.04 284,565.61 12,748.15 217,590.43 12, 748.15 12,748.15 230,338.58 30 ANNUAL KEPORT OF FEDERAL RESERVE BANK OF ST. LOUIS. D.—Table shoioing volume of rediscounts accepted by the Reserve Bank of St. Louis from each State each month, the total accepted from each State during the year 1917, and the number of banks in each State rediscounting each month. EXHIBIT Banks. February.-. July September.. October November.. December Amount. Total.. 4 3 9 3 6 5 7 7 5 9 17 17 February March September.. November. . December... Total.. 2 1 3 3 2 3 3 3 6 5 3 4 $19,200.00 40.000.00 7,900.00 35,900.00 29,440.00 45,936.12 41,203.33 28,579. 25 52,496. 66 124,389.33 42,655.67 140,608.29 608,308.65 $.30,129.09 10,381.25 12,213. 63 24,119. 80 140,975.53 102,886.96 152,976.81 87,673, 52 97,708.98 168,779.95 1,498,2.52.50 944,043.06 Banks. 5 2 11 12 12 12 14 10 14 17 19 23 Amount. I January February.. March April May June July August September. October November. December. Total. Amount. Banks. $149,751.91 875,317.44 396,742.80 583,968.24 570,905.74 1,361,571.49 2,933,769.50 1 3 4 6 6 10 14 17 Banks. Amount. $22,060.00 310,000.00 892,547.64 1,358,546.06 824,001.00 1,286,484.93 2,661,832.43 3,315,341.22 10,670,813. 2 8 Total. Tennessee. Amount. Banks. Amount. $176,000.00 315.771.97 146,000.00 293,614.76 216,317.09 172,264.85 227,680.98 228,550.05 1,302,336.67 2,234,864.45 4,444,600.59 4,809,270.75 $605,728. 85 568,829.71 1,837,.517.32 3,933,355.18 5,949,071.80 4,542,802.58 15,381,406.41 15,104,344.10 25,020,447.86 25,871,747.31 32,313,695.09 49,982,704.93 14,567,272.16 2 3 3 4 4 4 3 4 12 10 6 0 135,074,082.90 E.—Table shotcing the rediscount Bank of St. Louis, each month during classes of paper. Kentucky. 6,872,027.12 $70,364.76 16,568.70 1,214,084.95 3,573,520,62 5,435,121.18 3,694,994.15 13,018,802.07 12,829,944.08 21,094,052.82 19,052,640.00 19,667,886.22 35,406,103.35 EXHIBIT 15 d a y s a n d less. 3 4 3 2 4 9 12 Missouri, Mississippi. Amount. Banks. 3,270,141.08 10,055,005.95 Banks. Amount. Banks. $310,030.00 186,107. 79 457,318.74 6,200.00 105,158.00 66,968. 59 172,878.14 174,308.34 1,071,883.49 2,433,082.91 2,636,896.19 2,433,568.70 2 2 5 2 5 3 9 7 17 14 10 13 Indiana. Illinois. Arkansas. Federal amount different 181,117,651.14 operations of the Federal Reserve 1917, classified by maturities and NOTES. d t 16 t o 30 d a y s . 31 t o 60 d a y s . 61 t o 90 d a y s . 91 ma y st h o . 6 on s 616. 00 83. 731.25 42, 725. 85 170, 024.60 1,218. 957. 47 438, 511,60 1, 678, 545.59 1,026, 823,45 2, 889, 446, 33 1,667, 208.16 2, 754, 881.56 4, 687, 060.31 Total. $67, 247, 65 10, 811.25 60, 764.97 266, 050. 71 1,381, 746. 59 1, 069, 264. 91 912, 945.60 957, 761. 80 2,242, 773. 78 1,986, 124.44 1.815, 974.09 3, 871, 968. 49 $27, 434.21 800. 00 26, 992.00 41, 713. 75 37, 742. 27 37,491.69 28, 916. 92 81, 657.03 9,012.31 43,193. 96 29, 990. 00 43, 492. 88 $218, 797. 86 181, 449 95 137, 241.58 2, 507, 429. 71 3, 999, 623. 48 2,071, 457. 04 4, 055, 617.84 5, 257. 535.44 11,096, 810.47 8, 203, 177.42 7,431, 652. 32 23, 822, 356.11 22,981,107.32 14, 272,638.43 16, 677, 532.17 14, 643,434.28 408,437.02 68, 983,149.22 $31, 500.00 5, 000. 00 1,331,971.84 706, 848. 21 196, 900. 00 903, 246. 92 2, 398, 047. 59 3,277,591.00 1,131,991.17 1,571,279.84 11, 426, 730.75 $73, 000.00 81, 107.45 758.76 6, 668. 81 697, 328. 94 654, 288. 84 329, 962. 81 531, 245. 57 793, 987, 05 677, 659. 69 374, 526,83 259, 103, 68 793, AKNUAT. REPORT OF FEDERAL RESERVE BAKK OF ST. L.OUIS. E.—Table showing the rediscount BanJc of St. Louis, each month during classes of paper—Continued. EXHIBIT 31 operations of the Federal Reserve 1917, classified by maturities and TRADE ACCEPTANCES. 15 d a y s a n d less. January February.. March April Mav Juno July August September. October November. December. 16 t o 30 d a y s . 31 t o 60 d a y s . 61 t o 90 d a y s . Total. 110,802.75 $6, 209.47 1.302.23 26,354. 73 37, 568.44 157,128.49 71,602.41 30,371.24 11,780.12 111,736,12 130, 884.05 133,986. 78 $11,930.99 1.262.26 28,407.15 18, 524.45 204,923.66 184,337. 98 49,902.22 28,458. 84 29, 503.56 54,374.98 256,931.84 571, 390.19 $154, 859.21 2,153.27 7,913. 73 4,335.03 37, 182.31 132,368. 84 224,562.57 166,429.10 $11,930.99 22,379. 76 30,275. 74 48, 046.47 414,448.32 356,345.54 136, 788. 57 66, 808.66 93,137.39 299,981.26 651,754.16 982, 608.82 225, 859.42 718,924.08 1,439, 918.12 729, 804. 06 3,114,505.68 814,908,03 566.36 3, 107.29 17,097.01 12, 725. 80 7,370.21 3, 643.55 14,671.40 1,501.32 39,405. 70 Total. COMMODITY P A P E R . - 16 t o 30 d a y s . 31 t o 60 d a y s . 61 t o 90 d a y s . May JulV October November Total. 33,154. 78 $2, 500. bb 15, 000.00 78, 666. 85 $15, 000.00 5, 000.00 67,588. 63 198, 866.98 $15, 000.00 19, 000. 00 82,588.63 310, 688. 61 44, 654.78 96,166. 85 286,455.61 427,277.24 $11,500.00 . Total COLLATERAL NOTES. 15 d a y s a n d less. 15 d a y s a n d less. January.. February March April May June July $375, 000. 00 365, 000. 00 1, 670, 000. 00 1, 377, 879. 00 1,520,000.00 2,115,000.00 11,170,000.00 August September October... November. December. $9, 780, 000.00 13, 836, 500. 00 17.286,000.00 23, 919, 600. 00 25,177, 740. 00 Total.. 108,592,719.00 P.—National banks tcJiich have been granted fidicuary powers, under section 11 (7c) of the Federal Reserve Act, up to Dec. 31, 1917. EXHIBIT Trustee, executor, administrator, and registrar of stocks and b o n d s : F i r s t National Banlv, Fordyce, Arlv. Lee County National Bank, Mariauna, Ark. F i r s t National Bank, Anna, 111. Ayers National Bank, Jacksonville, 111. City National Bank, Metropolis, 111. F i r s t National Bank, Pittsfield, 111. City National Bank, Evansville, Ind. Old S t a t e National Bank, Evansville, Ind. F i r s t National Bank, Mitchell, Ind. F i r s t National Bank, Mount Vernon, Ind. Citizens National Bank, Tell City, Ind. F i r s t - H a r d i n National Bank, Elizabethtown, Ky. F a r m e r s National Bank, Glasgow, Ky. Henderson National Bank, Henderson, Ky. 32 A N N U A L REPORT OF FEDERAL RESERVE B A N K OF ST. LOUIS. Trustee, executor, administrator, and registrar of stocks and F i r s t National Bank, Hopkinsville, Ky. Citizens National Bank, Lebanon, Ky. Marion National Bank, Lebanon, Ky. Boone County National Bank, Columbia, Mo. Exchange National Bank, Columbia, Mo. Citizens National Bank, Sedalia, Mo. Union National Bank, Springfield, Mo. Merchants-Laclede National Bank, St. Louis. Mo. National Bank of Commerce, St. Louis, Mo. Central-State National Bank, Memphis, Tenn. Trustee, executor, administrator, and r e g i s t r a r of b o n d s : Morganfield National Bank, Morganfield, Ky. Trustee, executor, and a d m i n i s t r a t o r : Nokomis National Bank, Nokomis, 111. Bedford National Bank, Bedford, Ind. F i r s t National Bank, Versailles, Mo. T r u s t e e and registrar of b o n d s : American National Bank, Bowling Green, Ky. . EXHIBIT ^• G.—Treasury certificates of indebtedness allotted to subscribers through the Federal Reserve Bank of St. LouiSy Mo. $25,000 or less. Offering. Issue. 1 2 3 4 6 6 7 8 9 10 $200,000,000 200,000,000 203,000,000 203.000.000 300.000, 000 250; 000, 000 300,000,000 400,000,000 300,000,000 685,000,000 11 690,000,000 Total bonds—Continued, Date. Maturity. 1917. 1917. Apr. 25 June 30 May 10 July 17 May 25 July 30 June 8 . . . d o Aug. 9 N o v . 15 Aug. 28 N o v . 30 Sept. 17 Dec. 15 Sept. 26 . . . d o Oct. 18 N o v . 22 Oct. 24 Dec. 15 1918. June 25 Amount. 77 $1,045,000 87 982,000 97 851,000 87 938,000 80 940,000 58 652,000 38 414,000 194 2,054,000 152 1,647,000 80 903,000 Over $250,000 to $500,000. 51 Number. 598,000 9 149 Over $500,000 to $1,000,000. Amount. 22 $1,015,000 20 904,000 8 254,000 6 236,000 11 430,000 8 320,000 390,000 9 820,000 19 24 l,0o0,000 578,000 13 1,001 11,024,000 N o v . 30 3,725,000,000 Over $100,000 to $250,000. Number. Over $25,000 t o $50,000. Over $50,000 to $100,000. Num- Amount. ber. 17 $1,755,000 12 1,102,000 12 773,000 9 659,000 9 640,000 8 600,000 5 480,000 9 840,000 11 895,000 7 635,000 450.000 3 275,000 6, 457,000 102 8,654,000 1 Over S1,000,000. Total. Issue. Number. 1 2 3 4 6 6 7 8 9 10 11 Total... Amount. Number. Amount. Number. Amount. 12 $1,730,000 7 1,183,000 7 931,000 8 1,427,000 8 1,340,000 6 1,035,000 7 1, 496,000 5 915,000 9 1, 553, 000 5 903,000 1 200,000 6 $2,450,000 6 2,213,000 2 615.000 3 1,130,000 6 2,500,000 4 1,551,000 4 1,494,000 6 2,885,000 7 2,555,000 1 412,000 1 310,000 2 $1,385,000 1 661,000 6 3, 776,000 1 690,000 1 615,000 75 12, 740,000 46 18,115,000 25 18, 778,000 , 1 1 3 6 2 2 603,000 2,451,000 5,003,000 1,600,000 2,030,000 Nnmber. Amount. 1 §1,020,000 2 ": 3,626,666 i 1,435,000 1 1,035,000 5 6,510,000 Number. Amount. 137 $10,400,000 133 7,045,000 132 7,200,000 116 8,100,000 7,900,000 116 84 4,188,000 64 4,874,000 237 11,000,000 209 12,710,000 108 5,028,000 67 3,833,000 1,403 82,278,000 ANNUAi. BEPORT OF FEDERAL RESERVE BANK OF ST. LOUIS. 33 G.—Treasury certificates of indebtedness allotted to subscribers through the Federal Reserve BanJc of St. Louis, Mo.—Continued. EXHIBIT Amount taken b y Federal R e serve B a n k of St. Louis for Its o w n account. Issue. 1 2 8 4 6 6 7 8 9 10 11 Amount disposed of b y sale. Amount held at maturity. $860,000 None. None. None. 27,000 None. 120,000 701,000 None. None. None. SS60,000 None. None. None. 27,000 None. 369,000 701,000 None. None. None. None. None. None. None. None. None. S249,000 None. None. None. None. Total H.—Table shoicing the denominations and amounts of Federal Reserve notes issued by Federal Reserve agent to the Federal Reserve BanJc of St. Louis each inonth from opening of the bank on Nov. 16, 1914, to Dec. 31, 1917. EXHIBIT Month. D e c e m b e r , 1914. 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 m b e r , 1915. Fives. Tens. Twenties. Fifties. Hundreds. Total. $410,000 307,000 1,500,000 780,000 740.000 460,000 $210,000 $80,000 660,940 &40,000 760,000 400,000 328,560 720,000 640,000 160,000 $200,000 4,197,000 2, 870,940 1,928, 560 200,000 110,000 964,350 941,600 820,000 60,000 40,000 1,392, (KK) 1, 960, 000 1,320, 000 440,000 1, 203, 600 1,600,000 960,000 50 2, 895. 950 5,152,000 3, 763,600 50 200,000 650,000 300,000 810,000 000,000 620,000 960,000 470,000 1, 290, 000 440, 000 1,120, 000 1, 600, 000 2, 130, 000 6, 680, 000 5, 920, 000 1,000,000 160,000 640,000 1, 840,000 560,000 1, 280, 000 880,000 1,440,000 4, 560,000 4,960,000 1,440,000 200,000 1(X),000 800,000 100,000 100,000 300,000 200,000 260,000 600,000 100.000 T o t a l for 1917. 11,540,000 20, 650, 000 17, 760, 000 2, 760,000 2, 550,000 65, 260, 000 T o t a l s i n c e o p e n i n g of b a n k to D e c . 31,1917 18,632,950 28,672,940 23,452,160 2,960,050 2, 550,000 76,268,100 T o t a l s for 1 9 1 4 - 1 5 . M a y , 1916 S e p t e m b e r , 1916. October, 1916. . . N o v e m b e r , 1916. December, 1916. T o t a l for 1916. M a r c h , 1917 A p r i l , 1917 M a y , 1917 J u n e , 1917 July,1917 A u g u s t , 1917 S e p t e m b e r , 1917. October, 1 9 1 7 . . . N o v e m b e r , 1917. December, 1917. $700,000 307,000 2, 489, 500 2,540,000 2,140,000 1, 020,000 9.196,500 150,000 3, 560,000 4,501,600 3,100, 000 600,000 11,811,600 $100,000 1,000.000 100,000 100,000 350,000 900,000 360,000 1,510,000 5, 580, 000 1,200,000 2,600,000 3, 430, 000 5, 580, 000 15,500,000 16, 000, 000 3, 500, 000 84 ANNUAL REPOBT OF FEDERAL RESERVE BANK OF ST. LOUIS. EXHIBIT I.—Federal Reserve notes received and returned. (Amounts of Federal Reserve notes of the several denominations received from other Federal Reserve Banks for redemption or credit and returned to other Federal Reserve Banks for redemption or credit by the Federal Reserve Bank of St. Louis during 1917.) Fives. Exchanged with Federal R e s e r v e B a n k of— Twenties. Tens. .. ...... Total E x c h a n g e d w i t h Federal R e s e r v e B a n k of— Boston. New York Philadelphia Cleveland ... Richmond Atlanta Chicago.. . .... . . St. Louis Minneapolis ................. Kansas C i t y . . . . . . . . . . . . . . . . . . . . Dallas ............. S a n Francisco Returned. Received. Returned. Received. Returned. $13,790 136,500 13,500 13,380 6,150 107,250 371,500 $14,000 238,000 17,500 29,905 28,100 227,725 108,500 $44,550 273,000 44,500 18,850 14,000 180,750 454,000 $30,000 355,000 36,700 60,000 41,400 294,720 237,500 $36,160 212,800 46,500 18,140 13,000 125,500 280,000 $4,600 220,000 34,000 86,000 44,380 281,040 557,500 19,9«0 89,250 70,170 9,280 100,000 1,102,700 506,500 38,000 20,940 88,100 153,540 22,300 119,000 687,180 649,000 26,000 i2,.580 32,200 143,360 23,240 102,000 472,120 464,000 66,000 850,750 Boston New York Philadelphia Cleveland Richmond. Atlanta C^hicago S t . Ivouis Minneapolis K a n s a s City Dallas S a n Francisco Received. 2,410,930 1,314,530 2,538,500 943,480 2,331,640 Fifties. Total. Hundreds. $2,350 30,500 1,600 20,000 6,600 7,950 102,550 $1,400 15,800 1,000 64,800 100 1,400 2,500 $2,500 35,200 800 30,800 1,600 9,200 44,300 $99,700 664,500 113,000 176,520 34,250 424,450 1,135,000 $53,450 878,700 90,600 226,705 122,080 820,635 1,050,350 900 1,500 5,550 2,650 3,400 21,400 18,800 9,250 100 100 1,100 700 3.900 15,100 323,200 9,700 54,500 211,150 373,720 58,170 328,300 2, 298,500 1,961,500 148,950 147,200 Total $3,800 26,400 7,500 61,350 1,000 9,550 27,000 224,400 89,000 476,300 3,344,960 7,979,770 J.—Table slioioing Federal Reserve notes received by the Federal Reserve agent from the Comptroller of the Currency each month from opening of the bank on Nov. 16, 191//, to Dec. 31, 1017. EXHIBIT Month. N o v e m b e r , 1914 October, 1915 N o v e m b e r , 1915 T o t a l for 1914-15 S e p t e m b e r , 1916 O c t o b e r , 1916 N o v e m b e r , 1916 T o t a l for 1916 March, 1917 A p r i l , 1917 M a y , 1917 J u n e , 1917 J u l y , 1917 A u g u s t , 1917 S e p t e m b e r , 1917 October, 1917 N o v e m b e r , 1917 D e c e m b e r , 1917 T o t a l for 1917 T o t a l since opening of b a n k t o Dec. 31,1917 Fives. Tens. $2,160,000 1,000,000 1,200,000 $840,000 1,000,000 1,000,000 $400,000 800,000 800,000 $400,000 $3,400, 000 3,200,000 3,000,000 4,360,000 2,840,000 2,000,000 400,000 9,600,000 520,000 800,000 1,£00,000 1,520,000 3.000,000 1^680,000 960,000 2,160,000 400,000 3,000,000 5,960,000 3,980,000 3,220,000 6,200,000 3,520,000 12,940,000 800,000 1,400,000 1,000.000 2,360;000 7,960,000 4,360,000 600,000 800,000 800,000 800,000 800,000 1,760,000 400,000 2,240.000 3,680,000 4,400,000 2,400,000 9,000,000 18,480,000 18,080,000 16,580,000 27,520,000 23,600,000 600,000 5,100,000 3,300,000 Twenties. Fifties. Hundreds. 1 Total. 800,000 400,000 800,000 1,600,000 800,000 1.600,000 3,760.000 2,600,000 5,200,000 16,940,000 13,860,000 3,400,000 2,600,000 2,400,000 50,560,000 3,000,000 2,400,000 73,100,000 400,000 200,000 800,000 200,000 1,000,000 $400,000 1 400,000 400,000 ANNUAL REPORT OF FEDERAL RESERVE BANK OF ST. LOXJIS. 35 K . — S t a t e m e n t of receipts and disposition of Federal Reserve notes hy Federal Reserve agent front opening of the hank on Nov. 16, 1914, and of funds and securities in his possession on Dec. 31, 1917. EXHIBIT F e d e r a l R e s e r v e n o t e s received from C o m p t r o l l e r of Notes issued to Federal Reserve Bank Notes returned by F e d e r a l Reserve Bank to Federal Reserve agent $ 5 , 9 6 6 , 500. F i t n o t e s r e t u r n e d by U n i t e d S t a t e s T r e a s u r e r to Federal Reserve a g e n t 1 1 , 600. Unfit n o t e s received by C o m p t r o l l e r from U n i t e d S t a t e s T r e a s u r e r for destruction 8, 426, 570. Currency $ 7 3 , 100, 000. 00 $70,268,100.00 00 00 00 14, 404, 670. 00 Federal Reserve notes o u t s t a n d i n g F e d e r a l R e s e r v e n o t e s in h a n d s of F e d e r a l R e s e r v e a g e n t Gold for r e t i r e m e n t of F e d e r a l R e s e r v e n o t e s : I n h a n d s of F e d e r a l R e s e r v e a g e n t $2, 512, 6 0 0 . 00 I n gold r e d e m p t i o n fund 2, 448, 830. 00 I n F e d e r a l R e s e r v e a g e n t s ' fund 27, 4 0 5 , 000. 00 P a p e r pledged t o s e c u r e F e d e r a l R e s e r v e n o t e s EXHIBIT 6 1 , 8 6 3 , 4 3 0 . 00 2, 810, 000. 00 32, 366, 430. 00 29, 908, 847. 4 1 L.—Table shoicing the clearing operations of the Federal Bank of St. Louis from Dec. 16, 1916, to Dec. 15, 1917. Reserve D a i l y average. Items drawn on banks in Federal Reserve city. Number. Dec. 15 t o Jan. 15 Jan. 16 to Fob. 15 Feb. 16 to Mar, 15 Mar. 16 to Apr. 15 Apr. 16 to May 15 May 16 t o June 15 June 16 t o July 15 July 16 to Aug. 15 1,302 1,205 1,535 1,486 1,673 1,717 1,803 1,636 1,663 1,689 2,167 2,557 Sept. 16 to Oct. 15 Oct. 16 to N o v . 15 N o v . 16 t o Dec. 15 Amount. $4,013,486 3,210,834 4,532,849 4,281,367 5,008,976 4,688,585 5,190,645 4,820,182 5,167,644 5,593,479 11,558,021 9,219,408 Items drawn on banVs in district outside Federal Reserve city. 1 I t e m s drawn on banks i n other districts. Number. Number. 8,106 7,314 8,494 8,524 8,495 8,401 8,448 8,069 9,402 9,612 10,979 12,564 Amount. $1,868,171 1,922,108 1,569,074 1,656,781 1,727,335 1,651,660 1,623,948 1,641,198 1,875,497 2,126,025 3,009,231 3,176,069 Amount. 292 183 178 175 169 192 214 220 200 165 228 204 $2,292,931 1,277,500 1,784,418 1,545,007 1,977,438 1,710,385 3,281,751 2,314,050 2,038,723 2,036,901 2,390,894 2,057,178 D a i l y average. - T o t a l (exclusive of items drawn on Treasurer of United States). Number. D e c . 15 t o Jan. 15 Jan. 16 to F e b . 15 F e b . 16 to Mar. 15 Mar. 16 to Apr. 15 Apr. 16 to May 15 May 16 t o J une 15 June 16 to July 15 July 16 to Aug. 15 Aug. 16 to Sept. 15 Sept. 16 to Oct. 15 Oct. 16 to N o v . 15 Nov. 16 to Dec. 15 9,700 8,702 10,207 10,185 10,337 10,310 10,465 9,925 11,265 11,466 13,374 15,325 Amount. $8,174,589 6,410,442 7,886,341 7,483,155 8,713,Y49 8,050,630 10,096,344 8,775,430 9,081,864 9,755,405 16,953,146 14,452,655 o NonMember member Items drawn on Treas- banks in banks on urer of t h e United district. par list. States. Number. 70 1,628 1,184 1,169 2,242 1,165 1,337 2,218 2,705 1,859 2,933 4,490 Amount. $13,957 143,536 154,115 171,329 318,699 207,334 627,955 422,022 573,861 719,081 884,942 1,468,199 Number. Number. 468 468 467 468 469 471 471 471 473 473 477 479 883 872 867 851 863 95S 961 968 1,003 1,004 1,005 997 H pr /';<5fa:i .rj/;i :fi| 1.. .•i.r;'^ T-. r- O'