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FE D E R A L R E SE R V E B A N K OF DALLAS March 10, 1931 ANNUAL REPORT FEDERAL RESERVE AGENT, 1930 To the Member Bank Addressed: For the information of your officers and directors and in the hope that it may be found of interest, there is enclosed a copy of the Sixteenth Annual Report of the Federal Reserve Agent covering the operations of the Federal Reserve Bank of Dallas for the calendar year ending December 31, 1930. Detailed statistical schedules covering the operations of the bank in 1930 will be published in the annual report of the Federal Reserve Board, a copy of which will be furnished you. Very truly yours, Federal Reserve Agent This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) 1 ? SIXTEENTH ANNUAL REPORT of the Federal Reserve Bank o f Dallas F or the D Y ear ecem ber E nded 31, 1930 3W ELEVENTH FEDERAL RESERVE DISTRICT l --- - $ ---------:------------------- --------------- , =r<sS>3« 1 SIXTEENTH ANNUAL REPORT of the Federal Reserve Bank o f Dallas For the D Y ear ecem ber E nded 31, 1930 ELEVENTH FEDERAL RESERVE DISTRICT LETTER OF TRANSMITTAL February 11,1931 Gentlemen: I have the honor to submit herewith the Sixteenth Annual Report of the Federal Reserve Bank of Dallas covering the year ended December 31, 1930. Respectfully, C. C. WALSH, Federal Reserve Agent Federal Reserve Board, Washington, D. C. DIRECTORS AND OFFICERS of the FEDERAL RESERVE BANK OF DALLAS 1931 DIRECTORS CLASS A R. E. HARDING, Fort Worth, Texas J. P. WILLIAMS, Mineral Wells, Texas W. H. PATRICK, Clarendon, Texas CLASS B A. S. CLEVELAND, Houston, Texas J. R. MILAM, Waco, Texas J- J. CULBERTSON, Paris, Texas CLASS C C. C. WALSH, Dallas, Texas S. B. PERKINS, Dallas, Texas E. R. BROWN, Dallas, Texas MEMBER FEDERAL ADVISORY COUNCIL B. A. McKINNEY, Dallas, Texas OFFICERS C. C. WALSH, Chairman and Federal Re serve Agent S. B. PERKINS, Deputy Chairman CHAS. C. HALL, Assistant Federal Reserve Agent and Secretary W. J. EVANS, Assistant Federal Reserve Agent W. P. CLARKE, General Auditor C. C. TRUE, Assistant Auditor LYNN P. TALLEY, Governor R. R. GILBERT, Deputy Governor R. B. COLEMAN, Deputy Governor FRED HARRIS, Cashier W. O. FORD, Assistant Deputy Governor E. B. AUSTIN, Assistant Cashier L. G. PONDROM, Assistant Cashier R. O. WEBB, Assistant Cashier CHAS. C. HUFF, General Counsel LOCKE, LOCKE, STROUD & RANDOLPH, Counsel EL PASO BRANCH DIRECTORS C. M. NEWMAN, El Paso, Texas, Chairman S. P. APPLEWHITE, Douglas, Arizona J. L. HERMANN, El Paso, Texas A. P. COLES, El Paso, Texas E. M. HURD, El Paso, Texas GEORGE D. FLORY, El Paso, Texas A. F. JONES, Portales, New Mexico OFFICERS J. L. HERMANN, Managing Director ALLEN SAYLES, Cashier HOUSTON BRANCH DIRECTORS R. M. FARRAR, Houston, Texas, Chairman GUY M. BRYAN, Houston, Texas N. E. MEADOR, Houston,Texas W. D. GENTRY, Houston, Texas E.A. PEDEN, Houston, Texas A. A. HORNE, Galveston, Texas J. C. WILSON, Beaumont, Texas OFFICERS W. D. GENTRY, Managing Director C. B. MENDEL, Cashier H. R. DeMOSS, Assistant Cashier SAN ANTONIO BRANCH DIRECTORS REAGAN HOUSTON, San Antonio, Texas, Chairman J. M. BENNETT, San Antonio, Texas FRANZ C. GROOS, San Antonio, Texas FRANK G. CROW, McAllen, Texas R. T. HUNNICUTT, Del Rio,Texas M. CRUMP, San Antonio, Texas W ALTER P. NAPIER, San Antonio, Texas OFFICERS M. CRUMP, Managing Director W. E. EAGLE, Cashier T. E. PARKS, Assistant Cashier FEDERAL RESERVE BANK OF DALLAS COMPARATIVE STATEM ENT OF CONDITION (In, Thousands o f Dollars) RESOURCES Dec. 31, 1930 Dec. 31, 1929 Dec. 31, 1928 Gold with Federal Reserve Agent----------------------------------Gold redemption fund with U. S. Treasury---------------------- 27,220 1,098 40,723 1,459 27,480 2,785 Gold held exclusively against F. R. Notes----------------Gold settlement fund with F. R. Board--------------------------Gold and gold certificates held by bank--------------------------- 28,318 9,659 8,425 42,182 15,826 8,795 30,265 33,518 7,284 Total gold reserves_____________________________ Reserves other than gold------------------------------------------------ 46,402 7,126 66,803 4,346 71,067 5,537 Total reserves___________________________________ Non-reserve cash__________________________________ ___— Bills discounted: Secured by U. S. Government obligations---------------Other bills discounted_______________________________ 53,528 4,206 71,149 4,286 76,604 3,410 744 3,598 3,267 10,024 9,001 2,160 Total bills discounted____________—-------------------Bills bought in open market____________________________ U. S. Government securities: Bonds ---------------------------------------------------------------------Treasury notes______________________________________ Certificates and bills_________________________________ 4,342 8,575 13,291 9,209 11,161 25,420 11,381 7,806 12,129 9,464 5,761 9,653 7,813 2,175 20 Total U. S. Government securities______________ Other securities---------------------------------------------------------------- 31,316 24,878 10,008 6,500 Total bills and securities________________________ 44,233 47,378 53,089 Due from foreign banks_________________________________ Uncollected items---------------------------- -------------------------------F. R. Notes of other banks_____________________________ Bank premises----------------------------------------------------------------All other resources---------------------------------------------------------- 21 17,362 487 1,830 551 24 27,137 880 1,876 359 25 27,052 535 1,920 427 Total resources__________________________________ 122,218 153,089 163,062 LIABILITIES F. R. Notes in actual circulation________________________ Deposits: Member bank reserve account_______________________ Government ________________________________________ Foreign banks----------------------------------------------------------Other deposits—___________________________________ 31,901 46,947 48,585 67,533 673 172 120 63,697 1,321 185 63 71,017 1,111 228 92 Total deposits----------------------------------------------------- 58,498 65,266 72,448 Deferred availability items_______________________________ Capital paid in---------------------------------------------------------------Surplus _________________________________________________ All other liabilities______________________________________ 17,964 4,356 8,936 563 26,871 4,453 8,935 617 28,654 4,329 8,690 356 Total liabilities__________________________________ .122,218 153.089 163,062 Ratio o f total reserves to deposit and F. R. note liabili ties combined (per cent)-----------__----------------------------Contingent liability on bills purchased fo r foreign corre spondents ___________________________________________ 59.2 63.4 63.3 18,035 18,040 11,806 SIXTEENTH ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF DALLAS Resume of Business Conditions A substantial decline in business and industrial activity was apparent in the Eleventh Federal Reserve District during the year 1930. In the early months of the year, business and indus try, while following an irregular course, held up fairly well, but with the appearance of the drouth and the sharp decline in commodity prices, particularly those of agriculture and live stock, the recession was accentuated. The renewed weakness of prices during the fall, which together with the drouth caused poor returns from agriculture, brought about a sharp decline in business. The reduced volume of trade, declining prices, and poor collections resulted in the largest number of commercial failures since 1927, and the aggregate indebtedness involved was the largest in seven years. On the other hand, the year’s record of bank failures in this district compares favorably with that of several other districts and with the mortality rate experienced in this district during previous periods of depression. There were 41 bank suspensions in the district during 1930, as compared with 11 in 1929 and the record total of 82 for 1921. The volume of construction activity, as measured by the valuation of building permits issued at principal cities, declined further by 31 per cent. While the production of petroleum was slightly higher than in 1929, it was due entirely to the rapid development and increased production in the State of New Mexico. Due to the extension and rigid enforcement of pro ration rules in Texas, production declined rapidly during the last five months of the year, and was considerably smaller than during the corresponding period of the previous year. Prices o'f petroleum products declined and the operations of petroleum companies generally were unprofitable. Mining activity in the Western portion of the district was curtailed sharply because of the heavy accumulation of stocks and the reduction in the price of copper to the lowest level recorded during the current century. The per acre yield of practically all important crops, except cotton, was smaller during 1930 than in the previous year due to the serious drouth over a large area of the district. In those sections where the drouth was most acute, the situation was aggravated by the fact that this was the second, and in some 5 instances the third, successive year in which drouthy condi tions had materially affected production. Furthermore, the drastic decline in agricultural prices reduced the farmers’ re turns from crops throughout the district. It is encouraging to note, however, that farmers in most sections, except those most severely affected by the drouth, have sufficient feed sup plies with which to make 1931 crops. The value of diversifica tion again proved its soundness during the past year and all indications point toward a further extension of this practice during the coming year. The livestock industry, likewise, suffered from both phys ical and market conditions. The extremely severe weather dur ing the opening month of the year caused heavy losses of livestock and a sharp decline in the condition of both ranges and animals. This situation was aggravated by the lack of suf ficient moisture during the spring months which prevented rapid recuperation. While the heavy, general rains during May and June brought about a temporary betterment, the unfavor able conditions prevailing earlier in the year had not been fully corrected before the protracted summer drouth set in, causing acute situations in many portions of the district in the suc ceeding months. Material improvement followed the heavy and widespread rains during the fall months and at the close of the year conditions had been materially improved and the outlook was generally favorable. Throughout the year livestock prices reflected an almost steady decline and trading on the ranges was almost at a standstill. Financial operations during 1930 were marked by a sharp decline in deposits, loans, investments, and discount rates. The heavy borrowings of reserve city banks at the Federal Reserve Bank were liquidated early in the year and their borrowings thereafter were in small volume. The borrowings of country banks were in about the same volume as in the previous year, which funds were used both to meet seasonal needs and an abnormal decline in deposits. Bank deposits declined sharply during the first nine months of the year and showed only a slight rise as a result of the marketing of crops. The volume of transactions handled by the Federal Reserve Bank of Dallas in 1930 was practically the same as in the previous year, operating expenses were slightly smaller, and the departments of the bank as a whole functioned with fewer employees than in 1929. 6 FEATURES OF OPERATIONS, YEARS 1930 AND 1929 -1929- -1930Loans, Rediscounts and Investments: Notes discounted and rediscounted for member banks______ Bills bought for our own account_____________________________ Bills bought for other than our own account________________ Purchase and sale of securities for ownaccount____________ Purchase and sale of securities other thanown account______ Number of Items 33,731 7,226 2,644 344 2,527 Amount $173,998,772 83,943,762 18,233,841 146,192,500 77,065,200 Number of Items 28,560 11,481 7,743 188 2,499 Amount $870,413,816 106,704,882 72,051,100 173,289,750 109,748,000 Currency and Coin: Bills received and counted------------------------------------------------------Coin received and counted------------------------------------------------------- 62,352,576 49,585,388 274,777,050 7,587,132 61,413,328 48,039,272 268,659,153 7,891,444 Check Collections: Checks collected------------------------------------------------------------------------ 37,707,108 Collection items handled----------------------------------------------------------139,338 Return items-------------------------- #-------------------------------------------------1,169,722 U. S. Government checks paid-----------------------------------------------1,140,459 U. S. Government coupons paid---------------------------------------------312,285 7,643,043,984 169,577,455 39,382,064 126,584,297 5,660,273 40,552,860 132,734 1,096,159 1,084,756 363,540 8,595,941,894 249,900,328 41,197,719 122,267,598 7,648,592 Transfers: Transfers of funds other than five per cent fund of national banks----------------------------------------------------------------------------------Transfers of funds for five per cent fund of national banks__ 98,942 15,664 5,824,431,999 41,962,750 117,782 17,787 5,437,542,087 59,982,310 Fiscal Agency: U. S. Securities issued, redeemed and exchanged----------------- 35,385 171,914,112 57,360 234,882,415 Custody of Securities: Number of pieces received from outside sources____________ Number of pieces received inter-departmental transactions.. Number of pieces delivered other than inter-departmental__ Number of pieces delivered inter-departmental transactions.. 23,269 17,809 24,305 17,714 20,681 10,232 30,328 10,120 EARNINGS AND EXPENSES The gross earnings of the bank in 1930 were $1,585,112, as compared with $2,496,029 in 1929, a decrease of $910,917, or 36.5 per cent. Of this amount $229,821, or 14.5 per cent, resulted from the purchase of bills, as compared with $615,799, or 24.7 per cent, in 1929; $441,337, or 27.8 per cent, resulted from the discount and rediscount of paper, as compared with $1,301,049, or 52.1 per cent, in 1929, while $873,177, or 55.1 per cent, resulted from earnings on United States securities, as compared with $452,419, or 18.1 per cent, in 1929. Current net earnings in 1930 were $243,959, as compared with $1,111,154 in 1929, a decrease of $867,195, or 78.0 per cent. The annual rate of current net earnings to paid in capital was 5.6 per cent in 1930, compared with 25.0 per cent in 1929. Current expenses in 1930 were $1,341,152, as compared with $1,384,875 in 1929, a decrease of $43,723, or 3.2 per cent. On December 31, 1929, after adjustments necessary in clos ing the books for the year had been made, the bank’s capital was $4,452,900 and surplus $8,934,617. Semi-annual dividends were paid to member banks on June 30 and December 31, 1930, at the rate of six per cent per annum. After making provision for reserves and sundry adjustments $9,078 was paid to the United States Government as a franchise tax and $1,008 was transferred to surplus, making that account $8,935,626 on December 31, 1930. OPEN MARKET OPERATIONS On January 1, 1930, our holdings of United States Govern ment securities amounted to $24,877,800. Of this amount $9,842,800 represented our independent holdings and $15,035,000 represented our participation in the System’s open-market investment account. During the year United States Government securities amounting to $23,907,600, excluding participation in System purchases, were purchased in the open market from member banks and others, while securities aggregating $23,767,150 matured or were sold, representing an increase in our inde pendent holdings of $140,450, and leaving our independent holdings of securities $9,983,250 on December 31, 1930. On February 18, we sold $5,000,000 of our participation in the System’s holdings to the System under a sixty-day repur chase agreement, leaving our participation $10,647,500, which was the minimum for the year. On March 20, we repurchased this $5,000,000 and subsequently our participation gradually 8 increased to $21,332,500 on December 31, 1930, which was the maximum for the year. Our total holdings of Government securities on December 31, 1930 amounted to $31,315,750. The average yield on our holdings of Government securi ties was about 3.21 per cent for the year. At the beginning of the year our holdings of bankers’ acceptances amounted to $9,209,063. On March 1 our holdings had reached $16,657,209, which was the maximum for the year. The minimum for the year was $2,893,591 on June 25, our holdings having been gradually decreased to this figure. During the year purchases in the open market, from other Federal reserve banks, and member banks and dealers in this district amounted to $83,943,762, while sales and maturities amounted to $84,578,195, leaving our holdings $8,574,630 on December 31, 1930. At the beginning of the year buying rates on bankers’ acceptances ranged from 4 to 4^/2 per cent. Rates gradually declined during the year and ranged from 1% to 2 per cent at the close of the year. The average yield on our holdings of bankers’ acceptances for the year was about 2.94 per cent. DISCOUNT OPERATIONS The volume of paper discounted and rediscounted during 1930, including $249,965 rediscounted for the Federal Inter mediate Credit Bank of Houston, was $173,998,772, compared with $870,413,816 in 1929, a decrease of $696,415,044, or 80 per cent. Of the total advances to member banks during the year, 90 per cent was to national banks and 10 per cent was to state banks, as compared with 96 per cent to national banks and 4 per cent to state banks in 1929. Loans at the beginning of the year amounted to $13,290,900. On January 6 they had increased to $17,290,400, which was the maximum for the year. On April 1 loans had decreased to $6,392,800 from which point they gradually increased to $14,879,700 on August 31, and on December 31, had gradually declined to $4,342,200, which was the minimum for the year. Of the total paper discounted in 1930, $60,691,478, or 35 per cent, consisted of notes secured by United States Govern ment obligations as compared with $551,651,000, or 63 per cent, in 1929, a decrease in this class of borrowings of $490,959,522, or 89 per cent. 9 CLASSIFICATION AND DISPOSITION OF NOTES SUBMITTED BY MEMBER BANKS DURING 1930 Number Number and amount of items received____________ 55,008 Farming ____ Commercial . Miscellaneous CLASSIFICATION $35,220,477.47* 49,862,696.77 2,275,328.08 Amount $87,358,502.32 $87,358,502.32 REASONS FOR RETURN OF PAPER, SHOWING PERCENTAGE RETURNED TO TOTAL RECEIVED Percentage Items Amount 424 1.19 Ineligibility _______________ -$1,039,613.40 335 Technical Defects__________ 447,118.10 .51 .67 240 589,075.69 Insufficient Cr. Information 3,566 4,831,111.57 5.53 Credit Showing____________ 470,246.69 .54 199 Miscellaneous ____________ Percentage .77 .61 .44 6.48 .36 Total Returned____________ $ 7,377,165.45 Total Accepted____________ 79,981,336.87 8.44 91.56 4,764 50,244 8.66 91.34 Total_______________ $87,358,502.32 100.00 55,008 100.00 AVER AGE D A IL Y OUTSTANDING BORROWINGS FROM THE FEDERAL RESERVE BANK OF DALLAS AND BRANCHES DURING THE YE A R 1930, SEGREGATED A S TO BANKS IN GROUPS 1, 2 AN D 3 Secured by Government Securities Group 1 _________________ $ 818,300 548,300 Group 2 _________________ Group 3 _________________ 240,400 $1,607,000 Otherwise Secured $3,250,700 3,269,100 2,177,300 Total $ 4,069,000 3,817,400 2,417,700 $8,697,100 $10,304,100 CONTRIBUTION OF MEMBER BANKS TO THE CAPITAL STOCK OF THE FEDERAL RESERVE BANK OF DALLAS AND BRANCHES, SEGREGATED AS TO BANKS IN GROUPS 1, 2 AND 3 Group 1 Group 2 Group 3 $2,428,050 . 1,315,250 . 613,250 Total________________________________________ $4,356,550 PERCENTAGES OF AVERAGE D A ILY BORROWINGS FROM THE FEDERAL RESERVE BANK OF D ALLAS AN D BRANCHES OF EACH GROUP TO ITS CAPITAL STOCK P A YM E N T Group 1 ________________________________________________ 167% Group 2 ________________________________________________ 290% Group 3 ________________________________________________ 394% *Does not include advances to the Federal Intermediate Credit Bank of Houston, aggregating $249,965.88. 10 RESERVE POSITION For the first six months of the year the reserve position of the bank ranged between a maximum ratio of 72.4 per cent on March 19 (the highest of the year as of weekly reporting periods) when total cash reserves were 171,910,000, to a mini mum of 58.1 per cent on February 12, when total cash reserves were $60,804,000. During the latter half of the year the ratio fluctuated between a maximum of 63.9 per cent on November 5, when total cash reserves were $60,225,000, to a minimum of 54.8 per cent on September 10, when total cash reserves were $52,801,000. CLEARING OPERATIONS Operations in the Transit Department during the year 1930 showed a reduction in both number and amount of checks han dled when compared with 1929. This unfavorable comparison may be explained by the fact that the current figures are measured against an unusually prosperous year. The trend does not appear unsatisfactory when comparing 1930 with the more normal year. The total number of checks decreased 6.7 per cent, while the amount showed a reduction of 10.9 per cent. A total of 38,847,567 checks were handled, amounting to $7,769,628,281, the daily average number being 130,800. Our largest day occurred on October 14, 1930, when we handled 219,539 items. During the year 1,169,722 checks were returned for various reasons, a ratio of one check returned for every 33 items han dled. For 1929 the ratio was one to 38. Of our total volume 11.5 per cent in number represented city check clearings. Clearings through the Reserve City Clear ing House amounted to $956,639,481, as compared with $1,219,161,185 in 1929. We received 1,140,459 checks drawn on the Treasurer of the United States, amounting to $126,584,297, which compares with 1,084,756 checks amounting to $122,267,598 during 1929. Non-cash collections handled in 1930 totaled 139,338, amounting to $169,577,455, as compared with 132,734 collec tions amounting to $249,900,328 for the previous year. 11 MOVEMENT OF MEMBERSHIP On January 1, 1930, the total number of national banks in the district was 671. During the year 10 national banks were chartered; 41 were dropped through liquidation, mergers and other causes, making a net decrease of 31, or a total on Decem ber 31, 1930 of 640. On January 1, 1930, the total state bank membership was 85. During the year one state bank was admitted to member ship. The membership of six state banks was terminated through liquidation, consolidations and other causes, making a net reduction of five, or a total state bank membership on December 31, 1930 of 80. National State Total Arizona _________ _________ 4 Louisiana __ ____ _____ _ 13 New Mexico______ _________ 19 Oklahoma _______ _________ 13 Texas ___________ _________ 591 0 1 1 1 77 4 14 20 14 668 Total_______ _________ 640 80 720 DEMAND FOR CURRENCY The average amount of Federal reserve notes in circulation during 1930 was approximately $9,200,000 less than in 1929. The following table shows the average, maximum, and mini mum circulation for 1930, as compared with 1928 and 1929: 1930 A verage__________ $34,899,000 Maximum _______ 47,670,000 Minimum_________ 30,455,000 1929 1928 $44,052,000 53,533,000 36,527,000 $38,418,000 50,811,000 29,498,000 The minimum circulation of $30,455,000 in 1930 was in July, while the minimum in 1929 of $36,527,000 was in May. In 1930 the maximum circulation of $47,670,000 was reached February 19, while the 1929 maximum of $53,533,000, was reached October 19. While both the average and maximum Federal reserve note circulation were less in 1930 than in 1929, the increase from minimum circulation in 1930 of $17,200,000 was approx imately the same as the increase from minimum in 1929. 12 The accompanying chart showing the demand for all classes of currency in this district for the year 1930, as compared with the years 1928 and 1929, shows that the demand for cur rency was considerably lower in 1930 than in the preceding two years. The peak of the autumn demand in 1929 was below that of the preceding two years and the seasonal return flow of currency, which generally terminates in May, was substan tially greater during 1930 than in other recent years. The return flow of currency was checked by a temporary and nonseasonal expansion in demand in February, which followed upon disturbed banking conditions in some of the larger cities in this district. The autumn increase in demand for currency incidental to the harvesting and movement of crops was much smaller and the decline from the October peak to the year’s close was greater than usually occurs. The amount of increase from July 31 to the autumn peak in 1930 was $8,700,000, and in 1929, $15,900,000. The demand for currency in December, which in 1930 did not reflect so large a holiday demand as in previous years, averaged but little above that of mid-summer. The fact that the demand for currency was considerably lower in 1930 than in the preceding two years and that the increase from July 31 to the autumn peak in 1930 was $7,200,000 less than in 1929 can be accounted for by the general business de pression that existed during the year and the lower commodity prices. 13 CHANGES IN DEMAND FOR CURRENCY ELEVENTH FEDERAL RESERVE DISTRICT BANK EXAMINATIONS During the year 1930 the Examination Department con ducted 10 credit investigations of state member banks, of which eight were made in connection with regular examina tions conducted by the state authorities. Eight non-member banks were examined pursuant to application for membership in the System. A total of 18 visits were made during the year to member and non-member banks as compared with six visits made in 1929. With few exceptions, the examinations con ducted by the state authorities are still being accepted by us in lieu of examinations by our own staff, although in some cases we find it desirable to have our own examiners investi gate certain member banks for the purpose of securing first hand information as to their loan policies and practices. BANK AND PUBLIC RELATIONS The Bank Relations Department continued the policy of visiting practically every member bank in the district at least once during the year. The total number of visits in 1930 was 1,028, as compared with 1,085 in the preceding year. The de crease in number of visitations is attributable, mainly, to the consolidations, liquidations and suspensions which occurred during the current year. In addition to the usual field work carried on by the bank’s regular traveling representatives, a number of banks were visited by our officers, including the branch managers. The field work in 1930 consisted of 760 reg ular visits to member banks, 242 to non-member institutions, and 26 special missions handled for various departments of the bank. On four occasions during the year our representatives were used in connection with the investigation of applications for the organization of new national banks. Speakers were furnished for a total of 46 gatherings during the year. In this connection, the radio was used on a number of occasions. All bankers’ conventions and group meetings in the Eleventh Fed eral Reserve District and a number of formal openings of new and remodeled bank buildings were attended by representa tives of this bank. Approximately 1,500 visitors were conduct ed through the head office and branch buildings during the year. STOCKHOLDERS MEETING The fourth annual meeting of the Stockholders Association of this bank was held in Dallas on June 19, 1930. It was at tended by 154 delegates representing 120 member banks, the attendance being somewhat smaller than that of the 1929 meeting. The chairman reviewed a program of objectives and activities that had been followed during the year by the Advis 15 ory Committee. Subjects of current interest to the stockhold ing banks were discussed and resolutions were adopted relating to the election of directors of the Federal Reserve Bank, recommending the extension of the present maturity limit on member banks’ collateral notes from fifteen to ninety days, suggesting a revision of the present method of distributing earnings of Federal reserve banks, and thanking the officers and directors of the Federal Reserve Bank for their assist ance in arranging for the meeting. INSOLVENT BANKS DEPARTMENT Seventeen member banks (16 national and one state) in this district suspended business in 1930, four of which were later reorganized or taken over by other banks. Of the 17 suspended banks, 11 were indebted to this bank at the time of suspension, and the indebtedness of six of these had been paid in full. Three member banks which were indebted to us went into voluntary liquidation during the year, other banks having assumed their deposit liabilities, making eight suspended and liquidating banks with indebtedness to us aggregating $141,604.14 in process of liquidation on December 31, 1930. INTERNAL ORGANIZATION AND PERSONNEL The Board of Directors held 11 meetings in 1930, with an average attendance of eight. There was no change in the personnel of the board in 1930. At its meeting on January 7, 1930, the board re-elected B. A. McKinney, Vice President of the First National Bank in Dallas, as the representative on the Federal Advisory Council for the Eleventh District, and redesignated W. E. Connell, Pres ident of the First National Bank of Fort Worth, as alternate. In the regular annual election in November, R. E. Harding, President of the Fort Worth National Bank, Fort Worth, Texas, was elected Class A director, Group 1, succeeding J. H. Frost, and J. R. Milam, of Waco, Texas, was re-elected Class B director, Group 2, for three-year terms, beginning January 1, 1931. On December 11 the Federal Reserve Board announced the redesignation of C. C. Walsh as Chairman of the Board and Federal Reserve Agent for 1931. On December 13 the Federal Reserve Board announced the reappointment of S. B. Perkins, of Dallas, as a Class C director for the three-year term beginning January 1, 1931, and his redesignation as Deputy Chairman for 1931. 16 There were no changes in the personnel of the directorates of the El Paso and Houston Branches during 1930. Mr. Ernest Steves, a director of the San Antonio Branch, died May 14, 1930. At the regular meeting of the board of directors of the head office, held June 7, Walter P. Napier, President of the Alamo National Bank, San Antonio, was appointed a director of the San Antonio Branch to succeed Mr. Steves. On December 31, 1930, the total number of officers and employees at the head office and branches was 414, a decrease of 11 since December 31, 1929. FISCAL AGENCY OPERATIONS The volume of business handled as fiscal agent of the United States during the year 1930 showed a substantial decrease over the year 1929. During the year 1930, 13 new issues of Government securi ties were floated, as compared with five issues in 1929, and there were 12 maturing issues, as compared with seven in 1929. There was a substantial reduction in the volume of inter est coupons handled for payment during the year 1930, as compared with 1929. On December 31, 1929, there were 18 regular employees in the department at an annual salary rate of $37,540, while on December 31, 1930, there were 14 employees at an annual sal ary rate of $31,060. OPERATION OF BRANCHES The volume of business handled at the El Paso Branch in 1930, compared with that handled in 1929, is reflected in the .following table: ■Number------1929 1930 Notes discounted and rediscounted . _____ 870 Bills received and counted 5,077,472 Coin received and counted _____________ 3,245,731 Transfer of funds____ 8,807 Check collections_____ 2,996,252 Treasury warrants 184,513 Non-cash collections__ 14,559 Return items ___ 69,733 ------- Amount1930 1929 749 $ 19,425,022 $ 28,777,623 4,828,629 27,868,350 28,454,550 2,779,557 9,990 2,831,537 177,360 13,392 61,082 1,234,849 263,918,335 469,591,545 21,078,965 9,990,532 3,273,645 1,012,510 246,756,727 447,853,646 19,481,020 10,653,252 3,370,865 17 At the beginning of the year 37 member banks (35 national banks and two state banks) were attached to the branch. During the year the membership of three national banks was terminated by consolidation and the membership of one state bank was terminated by withdrawal from the System. Two new national banks opened during the year, leaving the mem bership on December 31, 1930, at 35, consisting of 34 national banks and one state bank. The expense of operation, excluding furniture and equip ment, was $115,858 as against $112,013 in 1929. The personnel of the branch on December 31, 1930, com prised two officers and 34 employees, the same as that reported for December 31, 1929. The volume of business handled at the Houston Branch in 1930, compared with that handled in 1929, is reflected in the following table: ------- Number------- ------- Amount------- 1930 1930 1929 1929 Notes discounted and rediscounted _______ 1,469 1,977 $ 19,408,535 $ 141,802,419 Currency received and counted _____________12,505,960 13,469,890 53,702,100 58,724,328 1,570,647 1,672,149 Coin received and counted _____________15,900,182 16,333,511 25,546 30,401 1,776,701,403 1,781,179,586 Check collections______ 6,682,932 6,738,104 1,586,863,426 1,801,019,206 Transfer of funds______ Treasury warrants___ 219,603 202,306 26,208,239 25,482,667 Non-cash collections.... 39,609 38,370 52,827,515 74,601,607 Return items___________ 170,234 159,796 6,698,401 6,847,522 At the beginning of the year 89 member banks (78 national banks and 11 state banks) were attached to the branch. This same membership prevailed at the close of the year, although one national bank (First National Bank, Hemphill) suspended operations on December 18, 1930, and a decision has not been reached as to whether it will be reorganized or liquidated. The expense of operation, excluding furniture and equip ment was $161,359, compared with $162,434 in 1929. The personnel of the branch on December 31, 1930, com prised three officers and 48 employees, compared with three officers and 53 employees on December 31, 1929. 18 The volume of business handled at the San Antonio Branch in 1930, compared with that handled in 1929, is reflected in the following table: -------Number------- -------Amount------- 1930 1930 1929 1929 Notes discounted and rediscounted ________ 2,352 1,528 $ 25,077,094 $ 56,350,235 53,713,450 50,343,250 Bills received and counted ____ 12,513,410 11,300,595 7,937,008 6,010,759 1,570,610 1,502,809 14,180 15,467 504,087,141 467,306,778 Check collections______ 5,604,757 5,594,068 Coin received and counted ____________ Transfer of funds______ 994,628,166 1,067,301,313 Treasury warrants___ 188,968 175,087 28,067,808 27,086,805 Non-cash collections__ 17,708 16,172 20,392,597 20,054,613 Return items___________ 136,134 126,476 5,898,837 6,264,536 At the beginning of the year 94 member banks (83 national banks and 11 state bank) were attached to the branch. During the year two national banks went into voluntary liquidation, leaving total membership of 92, consisting of 81 national banks and 11 state banks. The expense of operation, excluding furniture and equip ment, was $141,664, as compared with $135,202 in 1929. The personnel of the branch on December 31, 1930, com prised three officers and 46 employees, compared with two officers and 50 employees on December 31, 1929. 19
@FedFRASER