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FEDERAL RESERVE BANK OF NEW YORK [Circular January Sixteenth Annual Statement To the Stockholders of the Federal Reserve Bank of New York: We hand you herewith a condensed statement of the condition of this bank at the close of its fiscal year, December 31, 1930, and of the Profit and Loss account for that year. For convenient comparison, the relative items for the previous year, 1929, are also shown. There is also included a comparative statement showing the volume of the principal operations conducted by the bank. We trust that you will find these various statements of interest, pending the issuance of the annual report of the bank which you will receive shortly. GEORGE L. HARRISON, Governor. No. 10171 17. 1931J Statement of Condition RESOURCES Dec. 31, 1930 Dec. 31, 1929 the collateral deposited by the bank when it obtains,federal Reserve notes. This gold is lodged partly in the vaults of the bank and partly with the Treasurer of the United States $420,729,395.98 $238,593,918.26 GOLD REDEMPTION FUND in the hands of the Treasurer of the United States to be used to redeem such Federal Reserve notes as are presented to the Treasury for redemption 14,032,365.61 16,813,705.22 437,002,717.26 339,616,539.21 135,357,795.77 154,835,138.11 39,878,345.00 50,382,220.00 $1,047,000,619.62 $800,241,520.80 $22,285,136.09 $12,946,493.58 $24,441,400.00 $127,012,250.00 37,456,625.51 44,746,515.44 158,273,425.84 191,745,088.72 283,331,150.00 239,205,400.00 2,850,000.00 7,150,000.00 $506,352,601.35 $609,859,254.16 BANK PREMISES $15,240,285.33 $15,663,777.65 CHECKS AND OTHER ITEMS IN PROCESS OF COLLECTION. . . 190,455,756.71 220,003,280.94 ALL OTHER MISCELLANEOUS RESOURCES 8,846,358.85 3,500,931.32 TOTAL MISCELLANEOUS RESOURCES $214,542,400.89 $239,167,989.91 C A S H R E S E R V E S held by this bank against its deposits and note circulation: GOLD HELD BY THE FEDERAL RESERVE AGENT as part of GOLD AND GOLD CERTIFICATES in vault GOLD I N T H E GOLD SETTLEMENT F U N D lodged with the Treasurer of the United States for the purpose of settling current transactions between Federal Reserve districts LEGAL T E N D E R N O T E S , SILVER, AND SILVER CERTIFICATES in the vaults of the bank (available as reserve only against deposits) TOTAL CASH RESERVES NON-RESERVE CASH consisting largely of National Bank Notes, and minor coin LOANS AND INVESTMENTS LOANS TO MEMBER BANKS: On the security of obligations of the United States On the security of, or by the discount of, commercial or agricultural paper or acceptances ACCEPTANCES bought in the open market U N I T E D STATES GOVERNMENT bonds, notes, bills, and certifi- cates of indebtedness O T H E R SECURITIES TOTAL LOANS AND INVESTMENTS MISCELLANEOUS RESOURCES TOTAL RESOURCES $1,790,180,757.95 $1,662,215,258.45 Federal Reserve Bank of New York LIABILITIES Dec. 31, 1930 Dec. 31, 1929 $384,976,316.50 $318,970,747.00 $384,976,316.50 $318,970,747.00 $1,062,275,925.90 $985,790,644.26 4,113,369.64 5,851,460.29 11,457,835.85 12,727,457.81 CURRENCY IN CIRCULATION FEDERAL RESERVE NOTES in actual circulation, payable on demand. These notes are secured in full by gold and discounted and purchased paper TOTAL CURRENCY IN CIRCULATION DEPOSITS R E S E R V E D E P O S I T S maintained by member banks as legal reserves against the deposits of their customers U N I T E D STATES GOVERNMENT D E P O S I T S carried at the Reserve Bank for current requirements of the Treasury OTHER DEPOSITS including foreign deposits, deposits of non-member banks, etc TOTAL DEPOSITS $1,077,847,131.39 $1,004,369,562.36 MISCELLANEOUS LIABILITIES DEFERRED ITEMS, composed mostly of uncollected checks on banks in all parts of the country. Such items are credited as deposits after the average time required to collect them elapses, ranging from 1 to 7 days $178,876,833.55 2,327,407.16 $187,720,689.22 A L L O T H E R MISCELLANEOUS LIABILITIES TOTAL MISCELLANEOUS LIABILITIES $181,204,240.71 $191,572,684.80 $65,577,650.00 $67,301,450.00 80,575,419.35 80,000,814.29 $146,153,069.35 $147,302,264.29 3,851,995.58 CAPITAL AND SURPLUS CAPITAL P A I D I N , equal to 3 per cent, of the capital and surplus of member banks SURPLUS—That portion of accumulated net earnings which the bank is legally required to retain TOTAL CAPITAL AND SURPLUS TOTAL LIABILITIES $1,790,180,757.95 $1,662,215,258.45 Profit and Loss Account For the calendar years 1930 and 1929 1930 1929 EARNINGS FROM LOANS TO MEMBER BANKS and paper discounted for $1,910,378.30 $12,492,641.58 1,917,936.89 3,522,642.34 5,895,424.92 2,459,162.69 669,448.33 839,832.62 $10,393,188.44 $19,314,279.23 $1,647,494.18 $546,927.82 $6,383,786.46 $6,313,909.95 new notes to replace worn notes in circulation, and to maintain supplies unissued and on hand, and the cost of redemption 442,777.54 738,555.41 F O R DEPRECIATION, SELF-INSURANCE, OTHER R E S E R V E S , LOSSES, ETC 625,734.79 545,518.11 $7,452,298.79 $7,597,983.47 $4,588,383.83 $12,263,223.58 $4,013,778.77 $3,544,314.09 574,605.06 8,718,909.49 $4,588,383.83 $12,263,223.58 them FROM BANKERS ACCEPTANCES FROM UNITED STATES GOVERNMENT OBLIGATIONS OTHER EARNINGS TOTAL EARNINGS ADDITIONS TO EARNINGS F O R SUNDRY ADDITIONS to earnings, including income from Annex Building DEDUCTIONS FROM EARNINGS F O R C U R R E N T B A N K OPERATION. (These figures include most of the expenses incurred asfiscalagent of the United States) F O R F E D E R A L R E S E R V E CURRENCY, mainly the cost of printing T O T A L DEDUCTIONS FROM EARNINGS N E T I N C O M E available for dividends, additions to surplus, and payment to the United States Government DISTRIBUTION OF NET INCOME I N DIVIDENDS paid to member banks, at the rate of 6 per cent on paid-in capital I N ADDITIONS TO SURPLUS—The bank is required by law to accumulate out of net earnings, after payment of dividends, a surplus amounting to 100 per cent, of the subscribed capital; and after such surplus has been accumulated to pay into surplus each year 10 per cent, of the net income remaining after paying dividends. Any net income remaining after paying dividends and making additions to surplus (as above) is paid to the United States Government as a franchise tax. No balance remained for such paj'ments in 1930 or 1929. TOTAL N E T INCOME DISTRIBUTED Earnings by Months The following figures show in comparison the gross earnings of the bank by months for the years 1930 and 1929: January.. February. March.. . April May June July August... September October. . November December. 1930 1929 $1,655,868.63 1,151,393.62 1,084,677.00 991,192.97 780,916.03 842,442.06 629,940.95 613,671.81 541,340.64 575,136.48 560,443.89 966,164.36 $1,824,933.96 1,248,163.69 1,384,447.34 1,344,820.13 1,271,806.96 1,409,135.64 1,980,915.13 1,887,174.26 1,800,434.28 1,453,791.83 1,580,613.63 2,128,042.38 $10,393,188.44 $19,314,279.23 Ratio of Net Earnings 1930 1929 Per cent earned on capital paid in 6.9 20.7 Per cent earned on capital and surplus 3.1 9.4 Per cent earned on capital, surplus, and deposits 0.4 1.1 • s Comparative Statement Showing Volume of Operations The following table presents in comparative form for the past three years the volume of the principal operations of the Federal Reserve Bank of New York, which are of such character that they can be expressed in quantitative terms. At the close of business December 31, 1930, the total personnel of the bank, including the Buffalo Branch, numbered 2,415. . 1930 SUPPLYING CURRENCY AND COIN 1929 1928 CUBEENCY PAID OUT, EECEIVED, OE REDEEMED Individual notes counted Dollar amount paid and received 730,751,000 709,940,000 $9,827,873,000 $10,206,866,000 666,298,000 $8,866,402,000 1,520,441,000 7,382 1,574,002,000 8,685 1,341,373,000 7,352 299,795 320,578 303,160 44,841 49,705 38,056 COIN PAID OUT OE EECEIVED Individual coins received Tons of coin received during year CUBEENCY AND COIN SHIPMENTS, number of shipments to and from out-of-town banks during the year MAKING LOANS AND INVESTMENTS BILLS DISCOUNTED FOE MEMBEE BANKS, either discounted customers' paper or advances against the notes of member banks secured by collateral in the form of Government securities or commercial or agricultural paper. Number of bills discounted Dollar amount $5,713,832,000 $23,602,022,000 $24,791,838,000 ACCEPTANCES AND GOVEENMENT OBLIGATIONS purchased for the account of this bank and other Federal Eeserve Banks. Dollar amount $6,859,571,000 $5,353,414,000 $6,445,726,000 190,373,000 177,303,000 COLLECTING C H E C K S , DRAFTS, NOTES, AND COUPONS CASH ITEMS, mostly checks, handled for collection for banks in all parts of the country. Number of items Dollar amount 187,951,000 $142,165,873,000 $156,641,846,000 $115,192,020,000 NON-CASH ITEMS, handled for collection, in- cluding drafts, notes and coupons. Number of items Dollar amount 6 2,532,000 2,600,000 2,615,000 $2,862,311,000 $2,690,034,000 $2,808,748,000 1930 1929 1928 SUPPLEMENTARY SERVICES SECURITIES HELD in safekeeping for the United States Government, the War Finance Corporation, and others. Average dollar amount $790,263,000 $804,299,000 $1,142,075,000 $2,384,528,000 $2,247,257,000 $1,931,081,000 ACCEPTANCES AND OTHER SECURITIES BOUGHT OR SOLD for member banks, and foreign banks. Dollar amount FUNDS TRANSFERRED BY TELEGRAPH to and from all parts of the country for the Treasury Department and member banks. Number of transfers 412,000 445,000 402,000 Dollar amount $73,520,472,000 $67,426,244,000 $55,469,947,000 SERVICES I N CONNECTION W I T H GOVERNMENT LOANS UNITED STATES GOVERNMENT SECURITIES issued, redeemed, or exchanged, including Government bonds, Treasury notes and bills, and certificates of indebtedness. Number of items : Dollar amount 516,000 $4,165,601,000 514,000 $3,155,408,000 1,504,000 $3,985,049,000 COUPONS PAID ON GOVERNMENT SECURITIES. Number of coupons 5,310,000 5,567,188 7,602,000 Dollar amount $233,820,000 $237,610,000 $250,025,000 (In addition to these operations for the Treasury, the bank performed other work for the Government connected with the currency, the collection of checks, the custody, purchase and sale of securities, the transfer of funds, etc., which have been referred to under their respective headings.) DIRECTORS J. HERBERT CASE, Chairman CHARLES E. MITCHELL, New York City THEODORE F. WHITMARSH, New York City Chairman, The National City Bank of New York Chairman, Francis H. Leggett & Company WILLIAM H. WOODIN, New York City President, American Car & Foundry Company SAMUEL W. REYBURN, New York City President, Lord & Taylor CLARENCE M. WOOLLET, Greenwich, Conn. THOMAS W. STEPHENS, Montclair, N. J. Chairman, American Eadiator and Standard Sanitary Corporation President, Bank of Montclair OWEN D. YOTJNG, New York City DAVID C. WARNER, Endicott, N. Y. President, Endicott Trust Company, Endicott, N. Y. Deputy Chairman Chairman, General Electric Company MEMBER OF FEDERAL ADVISORY COUNCIL EOBERT H . TREMAN President, The Tompkins County National Bank, Ithaca, N. Y. OFFICERS GEORGE L. HARRISON, Governor W. RANDOLPH BURGESS, Deputy Governor EDWIN E. KENZEL, Deputy Governor JAY E. CRANE, Deputy Governor WALTER S. LOGAN, Deputy Governor and General Counsel ARTHUR W. GILBART, Deputy Governor LESLIE E. BOUNDS, Deputy Governor Louis F. SAILER, Deputy Governor CHARLES H. COE, Assistant Deputy Governor RAY M. GIDNEY, Assistant Deputy Governor J. WILSON JONES, Assistant Deputy Governor WALTER B. MATTESON, Assistant Deputy Governor JAMES M. EICE, Assistant Deputy Governor ALLAN SPROUL, Assistant Deputy Governor and Secretary ROBERT F. MCMURRAY, Manager, Collection Department JACQUES A. MITCHELL, Manager, Loan and Discount Department ROBERT M. MORGAN, Manager, Bill Department THEODORE M. CRISP, Assistant Counsel WILLIAM A. SCOTT, Manager, Government Bond and SafekeepEDWARD O. DOUGLAS, Manager, Foreign Department ing Department EDWIN C. FRENCH, Manager, Cash Department I. WARD WATERS, Manager, Chech Department DUDLEY H. BARROWS, Manager, Administration Department WESLEY W. BURT, Manager, Accounting Department OFFICERS OF FEDERAL RESERVE AGENT'S FUNCTION J. HERBERT CASE, Federal Reserve Agent WILLIAM H. DILLISTTN, Assistant Federal Reserve Agent HAROLD V. EOELSE, Manager, Reports Department, and HERBERT S. DOWNS, Assistant Federal Reserve Agent Assistant Secretary and Manager, Bank Relations Department CARL SNIDER, General Statistician EDWARD L. DODGE, General Auditor GEORGE W. FERGUSON, Assistant General Auditor BUFFALO BRANCH DIRECTORS EDWARD G. MINER, FREDERICK B. COOLEY, President, New York Car Wheel Co., Buffalo LEWIS G. HARRIMAN, President, M & T Trust Company, Buffalo GEORGE G. KLEINDINST, President, Pfaudler Company, Rochester, N. Y. GEORGE F. EAND, President, Marine Trust Company, Buffalo JOHN T. SYMES, President, Niagara County National Bank and Trust Co., Lockport, N. Y. President, Liberty Bank of Buffalo ROBERT M. O 'HARA, Managing Director OFFICERS ROBERT M. O 'HARA, Managing Director HALSEY W. SNOW, JR., Cashier R. B. WILTSE, Assistant Manager CLIFFORD L. BLAKESLEE, Assistant Cashier
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