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FEDERAL RESERVE BANK OF DALLAS May 29, 1934. A N N U A L R E P O R T F E D E R A L R E SE R V E A G E N T, 1933 To the Member Bank Addressed: F or the inform ation o f your officers and directors, and in the hope that it m ay be found o f interest, there is enclosed a copy o f the Nineteenth Annual R eport o f the Federal Reserve Bank o f Dallas fo r the calendar year ended Decem ber 31, 1933. Detailed statistical schedules covering the operations o f the bank in 1933 will be published in the annual report of the Federal R eserve Board, a copy o f which will be furnished you. Very truly yours, Federal Reserve A gent This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) NINETEENTH ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF DALLAS NINETEENTH ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF DALLAS 1933 0 ^ 0 L E T T E R OF T R A N S M IT T A L February 27, 1934 G entlem en: I have the honor to subm it herew ith the Nineteenth Annual R eport o f the Federal R eserve Bank o f Dallas covering the year ended Decem ber 31, 1933. R espectfully, C. C. W A L S H Federal Reserve A gen t Federal Reserve Board W ashington, D. C. DIRECTORS A N D O FFICERS of the F E D E R A L R E SE R V E B A N K OF D A L L A S 1934 D IRECTO RS CLASS A CLASS B R. E. HARDING, Fort Worth, Texas ALF MORRIS, Winnsboro, Texas W. H. PATRICK, Clarendon, Texas A. S. CLEVELAND, Houston, Texas J. R. MILAM, Waco, Texas JOHN D. MIDDLETON, Greenville, Texas CLASS C C. C. WALSH, Dallas, Texas S. B. PERKINS, Dallas, Texas E. R. BROWN, Dallas, Texas M EM BER F E D E R A L A D V IS O R Y COUNCIL J. H. FROST, San Antonio, Texas ALTERNATE W. W. WOODSON, Waco, Texas O FFICERS C. C. WALSH, Chairman, and Federal Reserve Agent S. B. PERKINS, Deputy Chairman CHAS. C. HALL, Assistant Federal Reserve Agent, and Secretary W. J. EVANS, Assistant Federal Re serve Agent W. P. CLARKE, General Auditor C. C. TRUE, Assistant Auditor B. A. McKINNEY, 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. 0. WEBB, Assistant Cashier COUNSEL C. C. HUFF, General Counsel LOCKE, LOCKE, STROUD, & RANDOLPH, Counsel E L PA SO B R A N C H D IRECTO RS C. M. NEWMAN, El Paso, Texas, Chairman S. P. APPLEWHITE, Douglas, Arizona J. L. HERMANN, El Paso, Texas C. N. BASSETT, El Paso, Texas A. F. JONES, Portales, New Mexico A. P. COLES, El Paso, Texas SAM D. YOUNG, El Paso, Texas O FFIC E R S J. L. HERMANN, Managing Director ALLEN SAYLES, Cashier HOUSTON B R A N C H DIRECTO RS R. M. FARRAR, Houston, Texas, Chairman W. D. GENTRY, Houston, Texas SAM TAUB, Houston, Texas A. A. HORNE, Galveston, Texas J. A. WILKINS, Houston, Texas SAM R. LAWDER, Houston, Texas J. COOKE WILSON, Beaumont, Texas O FFICERS W. D. GENTRY, Managing Director H. R. DeMOSS, Cashier SA N AN TO N IO B R A N C H DIRECTORS FRANK M. LEWIS, Sr., San Antonio. Texas. Chairman JOHN M. BENNETT, San Antonio, GEORGE C. HOLLIS, Eagle Pass, Texas RICHARD KING, Corpus Christi, Texas Texas WALTER P. NAPIER, San Antonio, M. CRUMP, San Antonio, Texas Texas FRANZ C. GROOS, San Antonio, Texas O FFICERS M. CRUMP, Managing Director W. E. EAGLE, Cashier F E D E R A L R E SE R V E B A N K OF D A L L A S COMPARATIVE STATEMENT OF CONDITION (In Thousands of Dollars) RESOURCES Gold with Federal Reserve Agent.................. Gold redemption fund with U. S. Treasury.... Dec. 31 1933 41,074 865 Dec. 31 1932 20,640 1,256 Dec. 31 1931 40,700 809 Gold held exclusively against F. R. notes. Gold settlement fund with F. R. Board........ Gold and gold certificates held by bank........... 41,939 32,877 3,741 21,896 7,244 4,246 41,509 8,881 3,639 Other Total gold reserves.............................. 78,557 33,386 54,029 cash*........................................... ............ 6,797 12,088 11,478 45,474 65,507 Total gold reserves and other cash... 85,354 Redemption fund F. R. bank notes................ Bills discounted: Secured by U. S. Government obligations. Other bills discounted.....-........................... 708 164 719 572 4,630 543 9,873 Total bills discounted---------------------Bills bought in open market............................. U. S. Government securities: Bonds ........................................................... . Treasury notes..... .............. - ....................... Certificates and bills....... -......................... 883 9,248 5,202 826 10,416 3,019 18,528 25,526 22,421 17,313 6,151 22,257 17,995 536 11,333 Total U. S. Government securities.... Total bills and securities................... Due from foreign banks.................................. F. R. notes of other banks............................... Uncollected items................................................ Bank premises................................................... All other resources............................................ 66,475 76,606 97 494 15,723 1,750 914 45,721 51,749 83 318 12,514 1,741 1,226 29,864 43.299 260 397 13,404 1,785 2,301 Total resources..................................... 181,646 113,105 126.953 F. R. notes in actual circulation....................................... F. R. bank notes in actual circulation............................ Deposits: Member banks—Reserve account................................ Government ..........................-........................................ Foreign banks........ ...................................................... Special deposits—Member banks................................ Other deposits................................................................. 42,888 11,344 38,783 46,812 95,937 60 121 333 1,466 46,779 125 586 48,811 1,509 2,306 658 246 Total deposits......................................................... Deferred availability items.................................................. Capital paid in.................... .......... ....................................... Surplus ............................ ............. ....................................... All other liabilities......... - .................................................... 97,917 16,414 3,719 8,043 1,321 48,148 12,500 3,910 8,719 1,045 52,872 13,223 4,135 7,624 2,287 Total liabilities........................................................ Ratio of total gold reserves and other cash to deposit and F. R. note liabilities combined (Per cent)----Contingent liability on bills purchased for foreign correspondents ............................................................. 181,646 113,105 126,953 60.6 52,3 65.7 110 1,090 7,456 LIABILITIES ♦Other cash does not include F. R. notes or own F. R. bank notes. N IN E T E E N T H A N N U A L R E PO RT o f the F E D E R A L R E SE R V E B A N K OF D A L L A S Resum e o f Business Conditions Business activity in the Eleventh Federal Reserve District, a fter declining fo r three successive years, turned upward in 1933. During the first quarter o f the year m erchandise dis tribution in both wholesale and retail channels declined to new low level, but a turn fo r the better occurred in A pril and during the rem ainder o f the year the im provem ent became m ore widespread. D uring the second h a lf o f the year sales o f departm ent stores in leading cities showed a large gain over the corresponding period o f the previous year and offset the decreases registered during the first half. Likewise, distribu tion o f reporting lines o f wholesale trade showed m oderate to large gains during the second half-year and in m ost lines the volum e o f sales fo r the year were greater than in 1932. Collec tions also showed a noticeable im provem ent, particularly at wholesale establishments where paym ents b y retailers on both current and carry-over accounts w ere large. W hile m erchants showed a disposition to hold orders well w ithin prospective de mand, there was, during the last six m onths o f 1933, a con siderable am ount o f forw ard buying, and heavy replacement orders were necessary to m eet the grow in g consum er demand. The num ber and liability o f com m ercial failures reflected a sharp decline in 1933, particularly in the second h a lf o f the year. In the latter period failures were fe w er than in any cor responding period since 1919 and the liabilities o f defaulting firms were the smallest since 1928. a The valuation o f building perm its issued at principal cities declined to a new low level and was approxim ately 27 per cent under that o f 1932. There w ere only three reporting cities where the 1933 volum e was greater than in the previous year. There was also a fu rth er decline in the production and ship m ents o f cement. The production o f petroleum during the first fo u r m onths o f the year was held below that in the correspond in g period o f the previous year. D uring the succeeding fo u r m onths, however, production rose to a very high level and m ore than offset the reduction in the earlier m onths o f the year. F or the closing fo u r m onths greater stabilization was attained and some reduction from the high peak reached in the preceding period was effected, y et it continued to exceed that o f the previous year. The total output f o r the year registered a gain o f 17 per cent over that o f 1932. Posted prices fo r crude [7] oil at larger fields declined in the first h a lf o f the year, but the loss was regained before the end o f the year. The physical volume o f agricultural production showed a fu rth er decline in 1933, w hich was due both to a reduction in acreage and in the per acre yield. The m a jor exception to the low er per acre yield was in the cotton crop where it was the largest in m any years. The general decline in crop production, however, was m ore than offset b y the substantial rise in agri cultural prices and the m oney returns exceeded those o f 1932 b y a wide m argin. In addition to the m oney received from crops, were the large paym ents to farm ers by the A gricultural A dju stm en t A dm inistration to effect acreage reductions. A s farm ers produced the 1933 crops w ith a minimum o f cash out lay, the large returns during the fall enabled them to liquidate a large percentage o f current borrow ings and to make sub stantial paym ents on carry-over indebtedness. W hile the early feed crops were reduced considerably by the spring and sum m er drouth, the supply w as augm ented by the large acreage planted to fall feed crops w ith the result that a large percent age o f the farm ers have sufficient feed w ith which to make 1934 crops. Farm ers continued the practice o f supplying them selves w ith a large volume o f hom e canned fru its and vege tables fo r use during 1934. Diversification program s are being stimulated and extended through the acreage reduction p ro gram o f the Departm ent o f A griculture. The cattle industry was affected adversely throughout the year by unfavorable range conditions and low prices. Over a large portion o f the district there was a serious deficiency in m oisture and ranges were poor w ith the result that much feeding was necessary. W hile the sheep and goat industry su f fered from poor range conditions, prices have been generally favorable and ranchm en w ere able to recuperate some o f the losses suffered during the period o f low prices. The production o f wool and m ohair reached a new high level and much o f the crop was disposed o f at prices 200 to 300 per cent higher than in the previous year. The loans o f banks in this district reflected a fu rth er de cline during the year. Deposits, on th e other hand, a fter reach in g a low level during the summer, rose sharply during the subsequent m onths and at the close o f the year were con siderably h igh er than a year earlier. M em ber bank borrow ings from the Federal reserve bank continued to follow a generally downward trend, and at the year-end w ere less than $600,000, the low est level recorded since the early days o f the Federal Reserve System ’s existence. M em ber bank reserve balances w ith the Federal reserve bank, except fo r m inor dips o f a seasonal character, rose steadily throughout the year, and at [8] the close o f 1933 the volum e o f excess reserves had reached an unprecedentedly high level. Taken as a whole, the agri cultural, com m ercial, industrial and banking interests o f the district substantially im proved their position during the past year and at its close found them selves well advanced in the process o f adjusting them selves to a new basis o f values and well fortified w ith cash and credit resources to m eet the problem s o f the year 1934. [9] F E A T U R E S O F O P E R A T IO N S, Y E A R S 1933 A N D 1932 -1933 -1932------------ Amount 52,897,600 13,239,818 2,918,971 10,000 146,694,400 Number of Items 44,674 815 696 18 3,303 Currency and Coin: Bills received and counted..... ....... ............................................ 46,883,203 Coin received and counted........................................................ 41,410,927 192,935,408 10,669,071 45,171,378 43,444,235 176,466,945 7,937,096 Check Collections: Checks collected....... ........ ......................................... -................ 27,811,114 208,573 Collection items handled............... ..... ..... ........ ..... .................... Return items - ................................................ .............................. 1,007,371 2,848,534 U. S. Government checks paid............. .................................. 318,820 U. S. Government coupons paid........................................... — 4,160,816,368 196.404,226 34,176,946 300,810,520 5,643,313 29,300,210 171,300 987,632 1,530,424' 303,336 4,282,186,538 137,080,097 25,176,379 173,772,987 5,007,980 Transfers: Transfers of funds other than five per cent fund of national banks --- ----- ----- ---- —......... ..... .... .......... ............. ................. Transfers of funds for five per cent fund of national banks 77,661 11,733 2,884,941,007 25,689,333 88,062 12,137 3,390,930,304 25,293,666 Fiscal Agency: U. S. Securities issued, redeemed, and exchanged........ ......... 81,298 253,990,646 52,492 212,317,109 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 47,093 26,389 39,084 24,915 Loans, 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 own account____________ Purchase and sale of securities other than own account.......... Number of Items 19,324 1,390 660 2 3,530 60,791 59,831 54,142 54,909 Amount 166,140,388 17,122,284 4,470,713 1,936,000 127,628,650 E A R N IN G S A N D E X P E N SE S The gross earnings o f the bank in 1933 were $1,251,276, as com pared w ith $1,307,246 in 1932, a decrease o f $55,970, or 4.3 per cent. O f this am ount $20,498, or 1.6 per cent, resulted fro m the purchase o f bills, as com pared with $70,562 or 5.4 per cent, in 1932; $143,462, or 11.5 per cent, resulted from the discount and rediscount o f paper, as com pared with $458,241, or 35.1 per cent, in 1932, while $1,062,718, or 84.9 per cent, resulted from earnings on United States securities, as com pared w ith $733,695, or 56.1 per cent, in 1932. Current expenses in 1933 were $1,220,798, as compared w ith $1,141,985 in 1932, an increase o f $78,813, or 6.9 per cent. Current net earnings in 1933 w ere $30,478, as compared w ith $165,261 in 1932, a decrease o f $134,783, or 81.6 per cent. This figure was augm ented by $34,007, largely representing profit realized on sales o f United States securities from our investm ent account. Deductions from current net earnings, how ever, covering building reserve, reserves fo r losses and other miscellaneous deductions, aggregatin g $512,533, resulted in a deficit o f $448,047 in net available earnings as compared w ith available earnings o f $163,915 in 1932. Semi-annual dividends aggregating $227,887 were paid to stockholders, this amount togeth er with the deficit in net avail able earnings being withdrawn from surplus, leaving surplus o f $8,042,741 on Decem ber 31, 1933, as compared w ith surplus o f $8,718,676 on D ecem ber 31, 1932. OPEN M A R K E T O PERATO N S On January 1,1933, our holdings o f United States Govern m ent securities amounted to $45,721,000. O f this amount $10,000,000 represented our independent holdings and $35,721,000 represented our participation in Federal Reserve Sys tem ’s open m arket investm ent account. Our participation in the System ’s purchases o f Government securities increased to $38,939,500 on February 18, and re mained practically unchanged at that figure until July. Be ginning on July 12 our participation in the System ’ s purchases gradually increased to $56,475,000 on N ovem ber 8, w hich was the m axim um fo r the year. W e continued to carry that amount until the close o f the year, at w hich tim e our total holdings o f Governm ent securities am ounted to $66,475,000. The average yield on our holdings o f Government securities was 2.03 per cent fo r the year. B A N K E R S ’ A C C E PTA N C E S A t the beginning o f the year our holdings o f bankers’ ac ceptances amounted to $825,700. Subsequently, on February 27, we received an allotment o f $2,513,000 from bills purchased b y the Open M arket .Policy Committee. T hereafter allotments w ere received w hich increased our total holdings on M arch 23 to $3,534,000. F rom that point during the succeeding m onths our holdings w ere gradually reduced due to m aturities. Through N ovem ber and Decem ber additional purchases were m ade by the Open M arket Policy Committee, increasing our holdings to $9,403,000 on D ecem ber 21, w hich represented the m axim um am ount held fo r the year. A t the beginning o f the year our buying rates on bankers’ acceptances ranged from 1 to 1 per cent. On M arch 16 they w ere increased and ranged from 3 ^ to 4 per cent. They were then periodically decreased and on O ctober 20 ranged from to 1 per cent, w hich rates prevailed through the remainder o f the year. The average yield on our holdings o f bankers’ acceptances, exclusive o f foreign bills, during the period held w as .79 per cent. DISCOUNT O PE R A TIO N S The volum e o f paper discounted and rediscounted during 1933, including $310,020 rediscounted f o r the Federal Inter m ediate Credit Bank o f Houston, was $52,897,600. This figure, com pared w ith $166,140,387 in 1932, show s a decrease o f $113,242,787, or 68 per cent. O f the total advances to m em ber banks during the year, 84 per cent was to national banks and 16 per cent was to State banks, as com pared with 85 per cent to national banks and 15 per cent to State banks in 1932. A dvances made to m em ber banks under Section 10 (b ) o f the Federal R eserve A ct, as amended, amounted to $2,001,900, including renewals. Outstanding loans at the beginning o f the year amounted to $5,202,600 and a fte r slight fluctuations gradually increased to a m axim um fo r the year o f $8,845,800, on A pril 28, a fter w hich date the amount declined to approxim ately $5,000,000 in June, and fo r the m onths o f July, A u gu st and Septem ber the aver age amount outstanding was approxim ately $4,000,000. From Septem ber there was a gradual decline to $632,300 on Decem ber 26, w hich was th e minimum fo r th e year. [12] O f the total paper discounted in 1933, $16,325,300, or 31 per cent, consisted o f notes secured b y United States Govern m ent obligations, as com pared w ith $61,110,600, or 37 per cent, in 1932, or a decrease in this class o f borrow ings o f $44,785,300, or 73 per cent. RESERVE POSITION F or the first six m onths o f the year the reserve position o f the bank ranged between a m axim um ratio o f 67.0 per cent on M arch 8 when total gold reserves and other cash were $87,561,000, to a minimum o f 49.8 per cent on A pril 26, when total gold reserves and other cash w ere $46,037,000. D uring the latter h a lf o f the year, the ratio fluctuated be tween a m axim um o f 72.5 per cent (the highest o f the year as o f weekly reporting periods) on O ctober 11, when total gold reserves and other cash w ere $82,583,000, to a minimum o f 57.2 per cent on July 26, when total gold reserves and other cash w ere $52,795,000. CLEARING OPERATIONS Operations in the Transit Departm ent during 1933, fo r the first year since 1929, showed an increase in the total amount o f checks handled over the preceding year. The increase over 1932 was very slight, being less than one-half o f one per cent. W ith reference to the total num ber o f checks handled, a re duction o f one-half o f one per cent over 1932 was shown. A total o f 30,659,648 checks was handled, am ounting to $4,461,626,888, the daily average num ber being 103,231. Our largest day occurred on M arch 16, 1933, when we handled 228,898 items. D uring the year 1,007,371 checks w ere returned fo r various reasons, a ratio o f one check returned fo r every 30 items handled. F o r 1932 the ratio was 1 to 31. O f our total volum e 13.2 per cent in number represented city check clearings. Clearings through the Reserve City Clear in g House amounted to $390,924,235, as com pared w ith $429,049,080 in 1932. W e received 2,848,534 checks drawn on the Treasurer o f the United States am ounting to $300,810,520, w hich compares w ith 1,530,424 checks, am ounting to $173,772,987 during 1932. Non-cash collections handled in 1933 totaled 208,573 am ounting to $196,404,226, as com pared w ith 171,300 amount in g to $137,080,097 the previous year. [»3] M O VEM EN T OF M EM BERSH IP On January 1, 1933, the total num ber o f national banks in this district was 535. During the year 21 national banks were chartered; 52 w ere dropped through liquidation, m ergers, and other causes, m aking a net decrease o f 31, or a total on Decem ber 31, 1933, o f 504. On January 1, 1933, the total State bank m embership was 64. During the year 10 State banks were adm itted to m em ber ship. The m em bership o f 19 State banks was term inated through liquidation, consolidations, and other causes, m aking a net reduction o f 9, or a total State bank membership on Decem ber 31, 1933, o f 55. The follow in g table shows the total num ber o f mem ber banks (national and State) in th e district on Decem ber 31, 1933, by States: National A rizona .................... .................. 3 10 Louisiana ............... ............. . New M exico............. ......... ........ 18 Oklahoma ________ .................. 9 Texas ........................ ..................464 Total ............... ............... ..504 State 2 1 1 0 51 Total 5 11 19 9 515 55 559 D E M A N D F O R C U R R E N CY There was very little difference in the average amount o f Federal reserve notes in circulation during 1933 when com pared to 1932. The follow ing table shows the average m axi m um and minimum circulation in 1933 as compared with 1932 and 1931: 1933 1932 1931 A v e r a g e .................... $37,965,000 $38,822,000 $33,427,000 M axim um ........... 62,996,000 47,303,000 52,261,000 Minimum ................. 31,282,000 34,786,000 26,260,000 The m inim um circulation o f $31,282,000 in 1933 was reached on Septem ber 16, while the minimum fo r the year previous o f $34,786,000 was in June. In 1933 the maxim um circulation o f $62,996,000 was reached on March 14. This high point o f our Federal reserve note circulation was brought about by the banking troubles incident to the m oratorium at that time. The m axim um circulation fo r 1932 was reached on January 2. In com paring the average Federal reserve note circulation fo r 1933 w ith 1932, it will be observed that the average cir culation fo r 1932 was greater by $857,000. The maximum [14] circulation was $15,693,000 greater in 1933 when compared to the year previous. Com paring the minimum circulation fo r the tw o years, it will be found that there was a decrease in the figure fo r 1933 over 1932 o f $3,504,000. W e placed in cir culation our own Federal reserve bank notes on A pril 25. The high point o f the Federal reserve bank note circulation was reached on O ctober 9, when it amounted to $16,133,000. A study o f the accom panying chart show ing the changes in the demand fo r all classes o f currency in this district fo r the year 1933 as com pared w ith th e years 1932 and 1931 shows that the demand fo r currency was som ewhat larger fo r the year 1933 as com pared to the preceding tw o years. Y ou will observe from the chart that our currency demand was fairly normal until the end o f February, when an abnormal increase asserted itself. This condition w as attributable to the banking situation at that time. The peak o f th e increase was reached shortly a fter the middle o f the month, when the decline set in and continued until the end o f A pril. F rom that tim e until the autumn demand fo r currency put in its appearance, the circu lation follow ed a more or less even trend when compared to 1932 in being only affected by natural factors which put in their appearance from time to time. The autumn increase in demand fo r currency incidental to the harvesting and m ovem ent o f crops was somewhat greater in 1933 than in 1932. The amount o f increase from July 31 to the autumn peak in 1933 was approxim ately $22,000,000 as com pared to an increase o f approxim ately $14,000,000 in 1932. The demand fo r currency in D ecem ber reflected a rather brisk holiday trade, there being an increase o f some $27,000,000 in the total circulation at this period as com pared to 1932. [15] CHANGES IN DEMAND FOR CURRENCY ELEVENTH FEDERAL RESERVE DISTRICT B A N K E X A M IN A T IO N S The Exam ination Departm ent conducted 20 credit investi gations o f State m em ber banks during 1933, these investiga tions being made in connection w ith regular exam inations by the State authorities. Tw enty-seven examinations o f State bank applicants, and 7 independent credit investigations o f mem ber banks, were made during the year. A total o f 55 visits to m em ber and non-m em ber banks w ere made, as compared w ith 56 visits in 1932. IN SO L V E N T B A N K S D E P A R TM E N T F ive o f the national banks in this district which suspended operations in 1933 were indebted to us. Three m em ber State banks, indebted to this bank, w ithdrew from the system, and the indebtedness o f 2 banks in conservatorship was transferred to this department. There was also transferred to the depart ment the indebtedness o f 1 m em ber bank which had consoli dated w ith a non-m em ber State bank. Tw enty-six banks w ere in process o f liquidation at the be ginning o f the year. The indebtedness o f 15 banks was paid in full. On D ecem ber 31, 1933, there w ere 22 banks indebted to us in the amount o f $414,'751.82. IN T E R N A L O R G A N IZA TIO N A N D PERSO N N EL The Board o f D irectors held 16 m eetings in 1933, w ith an average attendance o f 8. There was no change in the personnel o f the Board in 1933. A t its m eeting on January 12, 1933, the Board o f D irectors re-elected J. H. F rost, President o f the F rost National Bank o f San Antonio, as the representative on the Federal A dvisory Council fo r the Eleventh D istrict, and designated W . W . W oodson, President o f the F irst N ational Bank o f W aco, Texas, as alternate. In the regular annual election in Novem ber, R. E. Harding, President o f the F irst National Bank o f F ort W orth, and J. R. Milam, V ice President o f the Cooper G rocery Company of W aco, w ere re-elected Class A director, Group 1, and Class B director, Group 2, respectively, fo r three-year term s beginning January 1, 1934. On N ovem ber 2 the Federal Reserve Board announced the redesignation o f C. C. W alsh, o f Dallas, as Chairman o f the Board, and Federal Reserve A g en t fo r 1934. On N ovem ber 7 the Federal Reserve Board announced the reappointment of S. B. Perkins, o f Dallas, as Class C director fo r the three-year term beginning January 1, 1934, and his redesignation as Deputy Chairman o f the Board fo r 1934. [17] A t the El Paso Branch the only change in the personnel o f directors and officers was the appointm ent by our Board o f D irectors on March 16 o f C. N. Bassett, President o f the State National Bank o f E l Paso, as a director to succeed E. M. Hurd, who died on February 25. A t the H ouston Branch N. E. M eador, a director, died on N ovem ber 15. Mr. M eador was appointed b y the Board o f Di rectors o f the head office and his term would have expired Decem ber 31, 1935. Appointm ent o f Mr. M eador’s successor was deferred until a fter the first o f the year. There was no change in the officers o f the H ouston Branch in 1933. T here was no change in th e personnel o f directors and o f ficers at the San A ntonio Branch during 1933. On Decem ber 31, 1933, the total num ber o f officers and employees at the head office and branches was 428, an increase o f 45 since D ecem ber 31, 1932. F IS C A L A G E N C Y O PE R A TIO N S The volume o f transactions handled as Fiscal A gen t o f the United States during the year 1933 showed a very substantial increase com pared w ith the year 1932. D uring the year 1933, 58 new issues o f Government securi ties were floated, as compared w ith 47 new issues in 1932, and there were 50 m aturing issues handled, as compared w ith 19 in 1932. There was an increase in the volume o f interest coupons handled fo r paym ent during the year 1933 as compared w ith 1932. A dditional help was required at the latter part o f the year 1933 to handle the heavy volume o f exchanges o f F ourth Loan Bonds fo r Treasury Bonds dated O ctober 15,1933, o f the Series 1943-45. [18] O PE R A TIO N OF BR A N C H ES The volum e o f business handled at the El Paso Branch in 1933, com pared w ith that handled in 1932, is reflected in the follow ing ta b le : ------Number-----1933 1932 Notes discounted and rediscounted ......... 896 Bills received and counted ............... 3,280,056 Coin received and counted ........ 2,381,867 Transfers of funds 5,711 Check collections..... 1,902,782 Treasury warrants.. 327,016 Non-cash collections 16,946 Return items............ 56,319 ------ Amount-----1933 1932 2,132$ 4,275,846 $ 10,594,186 3,445,997 15,352,300 16,685,250 2,639,668 6,986 2,091,211 214,275 14,473 50,187 1,029,580 130,219,696 197,860,800 26,491,346 10,425,341 2,251,057 2,878,512 182,238,093 250,074,611 20,621,812 7,999,081 1,820.081 A t the beginning o f the year 30 m em ber banks (29 national banks and 1 State bank) w ere attached to the branch. Two banks qualified fo r m em bership during the year, leaving the mem bership on Decem ber 31, 1933 at 32, consisting o f 29 national banks and 3 State banks. The expense o f operation, excluding furniture and equip ment, was ?93,711 as com pared w ith $99,152 in 1932. The personnel o f the branch at the close o f Decem ber 31, 1933, com prised 2 officers and 39 employees, an increase o f 5 em ployees since Decem ber 31, 1932. The volum e o f business handled at the H ouston Branch in 1933, com pared w ith that handled in 1932, is reflected in the follow in g ta b le : ------ Number-----1933 1932 ------ Amount-----1933 1932 Notes discounted and rediscounted ....... 547 1,521 $ 5,033,880 Bills received and counted _____ 9,481,422 8,987,025 39,539,470 Coin received and counted ......... 10,358,598 12,998,899 2,383,900 Transfers of funds.. 23,669 23,093 938,540,480 Check collections..... 4,865,081 5,191,347 837,546,024 Treasury warrants.. 476,339 266,213 48,666,944 Non-cash collections 56,879 46,180 59,434,408 Return items........... 150,018 139,158 5,592,393 $14,690,155 33,122,250 1,179,945 1,021,493,796 798,446,437 26,123,445 40,045,754 4,308,445 A t the beginning o f the year 80 m em ber banks (70 national banks and 10 State banks) were attached to the branch. D uring the year the m em bership o f 7 national banks and 1 State bank was terminated, while the m em bership o f 4 national banks [19] and 4 State banks was added, leaving the total m embership on D ecem ber 31, 1933, at 80, consisting o f 67 national banks and 13 State banks. The expense o f operation, excluding furniture and equip ment, was $134,129, as com pared w ith $133,825 in 1932. The personnel o f the branch on D ecem ber 31, 1933, com prised 2 officers and 53 employees, com pared w ith 3 officers and 43 employees on Decem ber 31, 1932. The volume o f business handled at the San Antonio Branch in 1933, compared w ith that handled in 1932, is reflected in the follow ing ta b le : -Number1933 1932 Notes discounted and rediscounted ....... 1,585 Bills received and counted ................ 8,218,979 Coin received and counted................ 6,235,396 Transfers of funds.. 12,614' Check collections..... 4,247,760 Treasury warrants.. 399,679 Non-cash collections 28,829 Return items........... 132,078 -Amount 1933 4,265$ 4,952,325 1932 $ 14,035,967 8,412,135 41,223,888 34,676,075 6,714,925 13,127 4,394,251 223,985 24,199 122,886 2,603,452 279,019,577 538,941,048 37,744,146 28,499,171 4,781,659 1,459,543 334,675,774 538,891,951 29,304,009 23,184,984 4,159,899 A t the beginning o f the year 78 m em ber banks (69 national banks and 9 State banks) were attached to the branch. During the year 2 national banks closed, 1 was taken over b y a na tional bank, and 2 b y non-m em ber State banks. Tw o State banks w ithdrew fro m m em bership, 1 closed and 2 were ad m itted to m em bership, leaving total membership o f 72 on D ecem ber 31,193 3, consisting o f 64 national banks and 8 State banks. The expense o f operation, excluding furniture and equip ment, was $122,860, as com pared w ith $125,045 in 1932. The personnel o f the branch on D ecem ber 31, 1933, com prised 2 officers and 53 em ployees, com pared w ith 3 officers and 43 employees on D ecem ber 31, 1932. [20]
@FedFRASER