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FE D E R A L R E SE R V E BANK O F NEW YORK
Fiscal Agent o f the United States
r Circular N o. 3 0 7 1 1
1 M arch 22, 1946
J
Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills
Dated March 28, 1946
Maturing June 27, 1946
To all Incorporated Banks and Trust Companies in the
Second Federal Reserve District and Others Concerned:
Following is the text of a notice today made public by the Treasury Department with respect to a new offering of Treasury
bills payable at maturity without interest to be sold on a discount basis under competitive and fixed-price bidding.
F O R R E L E A S E , M O R N IN G N E W S P A P E R S ,
Friday, March 22, 1946.
TREASU RY DEPARTM ENT
Washington
The Secretary of the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, of 91-day Treasury
bills, to be issued on a discount basis under competitive and fixed-price bidding as hereinafter provided. The bills of this
series will be dated March 28, 1946, and will mature June 27, 1946, when the face amount will be payable without interest.
They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o’clock p.m., Eastern
Standard Time, Monday, March 25, 1946. Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and the price offered must be expressed on the basis of 100, with not more than
three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded
in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor.
Tenders will be received without deposit from incorporated banks and trust companies and from responsible and
recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the
face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an
incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which
public announcement will be made by the Secretary of the Treasury of the amount and price range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject
to these reservations, tenders for $200,000 or less from any one bidder at 99.905 entered on a fixed-price basis will be accepted
in full. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash
or other immediately available funds on March 28, 1946.
The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall
not have any exemption, as such, and loss from the sale or other disposition of Treasury bills shall not have any special
treatment, as such, under Federal tax Acts now or hereafter enacted. The bills shall be subject to estate, inheritance, gift,
or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the
principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority.
For purposes o f taxation the amount of discount at which Treasury bills are originally sold by the United States shall be
considered to be interest. Under Sections 42 and 117 (a )(1 ) of the Internal Revenue Code, as amended by Section 115 of
the Revenue A ct of 1941, the amount of discount at which bills issued hereunder are sold shall not be considered to accrue
until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital
assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in
his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent
purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which
the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418, as amended, and this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.
In accordance with the above announcement tenders will be received at the Securities Department of this bank (9th
floor 33 Liberty Street) New York 7, N. Y., or at the Buffalo Branch of this bank (270 Main Street) Buffalo 5, N. Y.,
up to two o’clock p. m., Eastern Standard Time, on Monday, March 25, 1946. It is requested that tenders be submitted
on special form printed on reverse side and returned in special envelope enclosed herewith. Payment for the Treasury
bills cannot be made by credit through the War Loan Deposit Account. Payment must be made in cash or other
immediately available funds.
A l l a n S p r o u l , President.
(Extract from Treasury Department statement released for publication March 19, 1946, announcing
results after tenders were opened for Treasury bi'ls dated March 21, 1946 maturing June 20, 1946)
Total applied for . . . .$2,074,769,000
Total a ccep ted .......... $1,315,311,000 (includes $49,839,000
entered on a fixed-price basis at
99.905 and accepted in full)
Average price . . 99.905+
Equivalent rate of discount
approx. 0.375% per annum
Range of accepted competitive bids:
High .................... 99.910
Equivalent rate of discount
approx. 0.356% per annum
L ow
Equivalent rate of discount
approx. 0.376% per annum
.................... 99.905
(59 percent o f the amount bid for at the low price
was accepted)
Total
Applied for
Federal Reserve
District
Boston
...
NTew York ..............
Philadelphia ............
Cleveland ................
Richmond ................
Atlanta ....................
Chicago ....................
St. Louis
Minneapolis
Kansas City ..........
Dallas ......................
San Francisco
T otal
$
19,680,000
1,491,760,000
29,765,000
36,175,000
16,042,000
5,095,000
298,665,000
27.625,000
3,800,000
18,690,000
11,270,000
116,202,000
$2,074,769,000
Total
Accepted
$
12,341,000
915,140,000
23,615,000
30,845,000
13,582,000
4.931,000
187,965,000
17,662.000
3,472,000
17,436.000
9.840.000
78,482,000
$1,315,311,000
( o ver )
14 Z
IMPORTAI T — If it is desired to bid on a competitive basis, fill in rate per 100 and
maturity value in paragraph headed “Competitive Bid”. If it is desired to bid on a fixedprice basis, fill in only the maturity value in paragraph headed “Fixed-Price Bid”.
DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid.
N o....
TENDER FOR 91-DAY TREASURY BILLS
Dated March 28, 1946.
Maturing June 27, 1946.
Dated a t ...................................................
...................................................................................... 1946
T o F e d e ra l R eserve B a n k o f N ew Y o rk ,
F is c a l Agent o f the United States.
COMPETITIVE BID
FIXED-PRICE BID
Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
March 22, 1946, as issued by the Secretary of
the Treasury, the undersigned offers to pay
Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and to
the provisions of the public notice on March
22, 1946, as issued by the Secretary of the Treas
ury, the undersigned offers to pay a fixed-price
of 99.905 (rate per 100) for a total amount of
.......................................... * for a total amount of
(Rate per 100)
$ ................................................ (maturity value)
of the Treasury bills therein described, or for
any less amount that may be awarded, payment
therefor to be made at your bank in cash or other
immediately available funds on the date stated
in the public notice.
$ ............................................ (maturity value)
(Not to exceed $200,000)
of the Treasury bills therein described, payment
therefor to be made at your bank in cash or other
immediately available funds on the date stated
in the public notice.
The Treasury bills for which tender is hereby made are to be dated March 28, 1946, and are to mature
on June 27, 1946.
This tender will be inserted in special envelope entitled “ Tender for Treasury bills.”
Name of Bidder........................................................................
(Please print)
B y .............................................................................. .
(Official signature required)
................................
(Title)
Street Address
(City, Town or Village, P. O. No., and State)
If this tender is submitted for the account of a customer, indicate the customer’s name on line below :
(Name of Customer)
(City, Town or Village, P. O. No., and State)
Use a separate tender for each customer’s bid.
IMPORTANT INSTRUCTIONS:
1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple of
$1,000 (maturity value). A separate tender must be executed for each bid.
2. If the person making the tender is a corporation, the tender should be signed by an officer of the cor
poration authorized to make the tender, and the signing o f the tender by an officer o f the corporation will be construed
as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be
signed by a member of the firm, who should sign in the form “ .............................................................................. . a
copartnership, b y .............................................................................................................. . a member of the firm.”
3. Tenders will be received without deposit from incorporated banks and trust companies and from responsible
and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent
of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of
payment by an incorporated bank or trust company.
4. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the
Treasury, is material, the tender may be disregarded.
Payment by credit through War Loan Deposit Account will not be permitted.
TENTB-821-a
* Price must be expressed on the basis of 100, with not more than
three decimal places. Fractions may not be used.
(OVER)
f <U 3c 7/)
FEDERAL RESERVE BANK OF NEW YORK
^President’s cRgport
to
directors
for 1945
CONFIDENTIAL
Federal
Reserve
of
N ew Y ork
Bank
March 28, 1946.
To the Directors of the
Federal Reserve Bank of New York:
Herewith is a detailed report on the operations of the
bank during the year 1945.
This is a confidential report of internal operations
giving a more detailed and intimate view than is possible or
appropriate in a public document such as our annual report to
the stockholders of the bank which will be issued shortly.
As in previous years, the important and interesting
developments in our operations during the year are reviewed in
Part 1, a statistical summary of the principal operations of
the bank during 1945 is set forth in Part 2, and the functions
of each of the operating units of the bank are described in the
Appendix.
COMTENTS
PART 1
Page
IrPORTANT AND INTERESTING DEVELOPMENTS IN OPERATIONS
DURING 1 9 4 5 .......................* ................ 1 - 1
Operations in Aid of the War Financing Program...........
1
War Loan Drives . . . . . . . .......................
2
Government Securities Issued* ............. ..........
2
Government Securities Redeemed or Exchanged . . . . . . .
3
Open ffeirket Operations* ....... . . . . . . . .........
4
Credit and Discount Operations....... . ...............
5
Loans to Banks......................................
5
Financing Under Regulation V . . * . . » . .............
6
Foreign Operations.................. . . . * ..........
7
Foreign Accounts.........................
7
Loans on Gold .......................... ...........
9
Gold Movements........................... .
9
Fiscal Agency Operations......................* ♦ . . .
10
10
Treasury Currency Reports ........... . . . . . . . . .
Ration Checks ................ . . . . . . . . . . . .
11
12
Reconstruction Finance Corporation.................. .
Foreign Funds Control ...............................
12
Check Collections ...................... . . . . . . . .
13
New Routing Symbol............................ » « .
13
Use of Air Express............................. . . .
14
Night Force Restored............................. * *
14
Bank Supervision and Relations....................... .
14
Membership....................................... .
14
Farm Credit File.............. ................... ....
15
Destruction of Records............................... *
15
Research Studies and Bank Publications................ ...
16
Regional........... ...............................
16
Other Studies in the Domestic Field.............. . •
17
Foreign Missions....... ....................... . «
18
Personnel....... ............. . . . . . . . . . t . t
IB
Returning Veterans. ................ . . . . . . . . .
19
Music............................. . . . . t . . . ,
19
Executive Training Program.................. * ♦ i • •
19
The ’’Federal Reserve Club"* . . . . . . . . . . . . . . .
19
20
Buffalo Branch Operations ..................
New Check Routing Symbol. .. .............. • . . • •
20
Savings Bond Redemption Division. . . . . . . . .......
20
Seventh War Loan and Victory Loan Drives. .............
20
Personnel............................. ...........
21
PART 2
Page
STATISTICAL SUKTARY OF PRINCIPAL OPERATIONS OF THE BANK
AND THE BUFFALO BRANCH (Following page 1 - 2 1 ) ........... 2 - 1
APPENDIX
Page
GENERAL INFOR!ATI ON REGARDING THE FUNCTIONS OF VARIOUS
DEPARTMENTS OF THE BANK (Following page 2 - 3 0 ) ......... AP - 1
FEDERAL RESERVE BANK OF NEVi YORK ORGANIZATION
CHART................................
Following AP - 17
PART 1
IMPORTANT AND INTERESTING DEVELOPMENTS
______ IN OPERATIONS DURING 1945
The year 1945 saw victory achieved in the world’s most devastating
war and signalled the end of another significant period in the operations of
the Federal Reserve System.
Undertaking its initial responsibilities at
the outbreak of r7orld TTar I the bank,
and many key members of its staff, were
experienced and prepared, in a measure, for the new tasks and responsibilities
which were forced upon them by TForld War II,
Between 1940 and 1945 the staff
of the bank nearly doubled and the volume of work handled in most departments
a great deal more than doubled in spite of the accelerated turn-over in
personnel occasioned principally by war-time conditions.
OPERATIONS IN AID OF THE WAR FINANCING PROGRAM
As in the previous war years, among the bank’s most important functions
were its various operations in aid of the war financing program.
The Government’s programs for demobilization, domestic reconversion,
international cooperation, veterans’ aid and maintenance of the military
establishment, necessitated continuance throughout the year at war-time levels
of the Treasury’s financing operations.
There was an increase of $48 billion in the national debt during the
year (from $231 billion to $279 billion) represented by the sale of new securi
ties.
Redemptions of matured public issues, excluding savings bonds, totaled
$112.5 billion and were replaced by an additional amount of new securities
sold or issued in exchange.
VTar Loan Drives
There were two drives in 194-5, the Seventh Far Loan Drive during
April, Kay and June, and the Victory Loan Drive in November and December.
The
Victory Loan Drive concluded the use of the drive technique of financing.
Significant data for the last two drives are set forth below (in millions of
dollars):
Drive
Seventh
Victory
Goal
Total Sales
Sales in
2nd F.R.
District
$14,000
11,000
$26,313
21,144
$9,67 8
3,040
Percent
of Total
36.7£
38.0
In addition to securities issued against subscriptions received by the bank and
the Buffalo Branch, a substantial amount of securities were delivered against
subscriptions entered in other Federal Reserve Districts.
Government Securities Issued
The number of pieces (individual securities) delivered by the bank
in connection with original issue and the total issue price of such securities
for the last six years were approximately as follows:
Year
Savings Bonds
Other Treasury Issues
Total
Number of pieces
310,000
2,340,000
17,330,000
32,063,000
37,927,000
30,904,000
1940
1941
1942
1943
1944
1945
107,000
556,000
848,000
931,000
1,202,000
1,133,000
417,000
2,896,000
18,178,000
32,994,000
39,129,000
32,037,000
$ 4,954,183,000
7,756,006,000
29,649,259,000
58,030,565,000
75,161,723,000
89,956,133,000
$ 5,027,686,000
8,430,238,000
31,198,518,000
60,056,157,000
77,362,927,000
91,802,692,000
Issue Price
1940
1941
1942
1943
1944
1945
$
73,503,000
674,232,000
1,549,259,000
2,025,592,000
2,201,204,000
1,846,559,000
1
-
2
Government Securities Redeemed or Exchanged
During the year sixty-eight marketable Government issues (bonds, notes,
bills and certificates of indebtedness), aggregating $105.7 billion face amount,
matured or became due.
At this bank 584,449 pieces with a total par value of
“
$72.93 billion were received for redemption or exchange, compared with 651,622
pieces aggregating over $48.97 billion par value in 1944*
This decline in the
number of pieces handled and increase in aggregate par value redeemed is the
result of a greater concentration of securities holdings in higher denominations.
There was a further increase in the volume of savings bonds redeemed
by the bank during the year, particularly after the end of hostilities in
August, but it is expected that redemptions should begin to decline slowly in
1946 after the March tax payments.
The following schedules show the number
of pieces and the maturity value of Savings Bonds, Series A through G, redeemed
by the bank and the Buffalo Branch in 1945, compared with the totals for 1944:
Series A
Through E
Year
Month
Number of Pieces
Maturity Value
11,732,058
$444,491,930
1,673,769
1,260,396
1,675,257
1,542,227
1,578,930
1.533.088
1,571,144
1,874, 550
1,913,687
2.436.089
1,972,241
2,294,712
21,331,090
$ 65,313,565
50,260,450
67,951,505
61,262,710
63,506,395
62,531,655
62,575,605
73,274,990
75,720,045
101,541,915
84,774,980
95,328,615
§864,042,430
1944
1945
January
February
March
April
May
June
July
August
September
October
November
December
Total
1 9 4 4
Number of
Pieces
Par Value
Series F
Series G
13,332
26,536
$17,403,675
39,060,400
1 - 3
1 9 4 5
Number of
Par Value
Pieces
20,009
39,534
$22,566,925
53,386,500
The foregoing figures include savings bonds of Series A through 3
paid by institutions qualified (since October 2, 1944) in this district as
paying agents in accordance with Treasury Department Circular No. 750.
That
circular was amended on June 30, 1945, to permit qualification of savings and
loan and building and loan associations, credit unions and similar financial
institutions.
At the end of the year 1,120 out of the .1,130 commercial banks,
trust companies, savings banks, and industrial banks in the District were so
qualified.
62 savings and loan and building and loan associations and 11 credit
unions were also qualified.
Qualified agents reporting to the head office of
the bank paid during 1945 a total of 17,247,654 individual bonds with an
aggregate maturity value of $702,175,275.
The increase in redemptions in this district does not exceed the
nation-wide increase, which, in turn, is not excessive in view of the increase
in bonds outstanding.
During the year the total of Series E bonds outstanding
increased from $25.5 billion to 530.8 billion (redemption value).
Total sales
since the date of initial issue, May 1, 1941, amounted to $40.2 billion, of
which 1% remains outstanding.
OPSN FARKET OPERATIONS
The Federal Reserve Bank of New York, as agent for and under the
general direction of the Federal Open Market Committee, operates the System
Open Market Account in which the resources of the twelve Federal Reserve Banks
are pooled for the purpose of conducting open market operations in United
States Government securities.
The objectives of Federal Reserve policy and the problems of the
national economy in the monetary and fiscal fields remained much the same during
the previous war years.
The termination of hostilities in May and August
brought some curtailment in war expenditures but since Federal outlays remained
at high levels open market operations in execution of System policy differed
1 - 4
only in degree and in detail.
They continued to be the principal instrument
by which reserve funds were supplied to the banking system to support the in
creased deposit liabilities of the banks, to offset continuing increases in
currency circulation, and to a smaller extent to offset gold losses.
Total holdings of Government securities by all the Federal Reserve
Banks increased from £18,8 billion at the end of 1944 to $24,2 billion at the
end of 1945, all of the increases being in the shorter term securities which
included net increases of over $1,7 billion in holdings of Treasury bills,
$3*5 billion in
certificates of indebtedness, and #700 million in 0.90$
Treasury notes.
Holdings of other Treasury notes, Treasury bonds and guaranteed
issues declined $500 million.
During the year, this bank as the agent of the
Federal Open Market Committee, purchased in the open market for the System Open
Market Account securities having a total face value of over $35.9 billion and
sold or presented for payment securities having a face value of $31-4 billion.
The face amount of Treasury bills purchased by the bank for its own account,
pursuant to the 3/8/^ buying rate and repurchase option established in 1942,
amounted to $27.6 billion Y'hile bills amounting to £26.8 billion were sold or
presented at maturity for payment.
In addition, in order to provide the
Treasurer of the United States with funds to avoid overdrafts at the Federal
Reserve Banks the System Account purchased a total of $488 million special
l/4$ Treasury certificates of indebtedness which were retired in a few days.
CREDIT AND DISCOUNT OPERATIONS
Loans to Banks
With the continued heavy Government financing, member banks, which
began borrowing heavily in the year 1944, increased their volume of borrowings
during 1945,
For the first time in several years member banks showed large
borrowings on the closing day of the year, the to t,al loans approximating $200
million,
1-5
During the year a total of 261 banks borrowed at various times an
aggregate amount in excess of -V20 billion.
On June 9, 1945, 85 banks were
borrowing #702 million which was the largest amount of loons outstanding to
banks on any day since &iarch 14, 1933, at which time a total of 471 banks of
this district were borrowing £728 million from us.
All such borrowings during
1945 were secured by United States Government obligations, principally those
maturing or callable in one year or less on which the differential discount
rate of l/2% is applicable.
Financing Under Regulation V
The financing of war production by means of V loans continued to be
carried on actively and in substantial volume until the Japanese surrender.
This phase of war financing subsequently entered a liquidating stage and the
number and dollar amount of V and VT loan commitments together with the volume
of loans outstanding under such commitments have been substantially reduced.
No new credits for war production purposes were guaranteed by the Government
after V-J Day.
A particularly important aspect of our activities during the
year was the servicing of existing guaranteed loans to safeguard the interests
of the guarantors (the Far Department, the Navy Departmsnt and the Maritime
Commission) in loans in material default or distress.
There Y:ere 16 such loans
at the end of 1945 as compared with 18 at the end of 1944»
Activity in T loans, representing purely interim termination financing,
did not develop to any important extent.
It appears that war contractors
replenished their working capital by preparing their termination claims promptly
(partly as the result of an educational program carried on by the Services
regarding the procedure of filing claims) which enabled the contractors to
obtain "prompt” partial payments.
The Government procurement agencies apparently
have also been active in making final settlements of claims, and, in addition,
have afforded prime contractors with means of settling rapidly claims of their
smaller subcontractors»
1 - 6
The entire program has been successful beyond original expectations.
Established or probable losses on guaranteed loans are extremely small in
relation to the aggregate amount of advances made, and such losses are amply
covered by the guarantee fees paid to the guarantors after deduction of
operating expenses.
Probably the paramount reason for this result has been the
Government procurement policy of allowing upward price adjustments to reasonably
efficient contractors who had proved that they could not produce at a profit
on the basis of original prices.
Therefore, the excellent experience relative
to this war-time financing program is not necessarily a criterion in determining
the feasibility of a similar approach to any problem of large scale financing
of peace-time industrial activities.
The indications are that the entire V-loan and T-loan activity will
be practically completed so far as this bank is concerned during 194-6.
FOREIGN OPERATIONS
Foreign Accounts
Considerable progress was made during 1945 in reconverting to a
peace-time basis the bank's financial dealings with some of the principal
central banks of Europe.
In the early months of the war the accounts maintained
for some of the central banks of the occupied countries became dormant, but
most of them were either operated by officials in exile (in many instances the
head offices of the banks were transferred abroad) or by governmental officials,
or were transferred to accounts in the name of their governments.
In other
cases, such as the Bank of England, Bank of Canada, etc., arrangements were
mede early in the war to transfer all gold, securities and balances held by the
Federal Reserve Banks to war-time accounts set up in the name of their govern
ments .
T/ith the end of hostilities, it became possible to proceed with the
undoing of these war-time arrangements.
In order to renew contacts with
European central banks, Mr. Knoke, Vice President in charge of the Foreign
1-7
Function, together with Mr. Rozell of the Foreign Department, and
Dr. Goldenweiser, Economic Adviser of the Board of Governors, visited a
number of European central banks during the summer of 194-5.
Arrangements were completed during the year for the opening of a
considerable number of new foreign accounts or subaccounts and for the re
activation of several old accounts which had been dormant for some time.
These
arrangements included the opening or reactivation of accounts or subaccounts
for the Bank for the Netherlands Indies and the central banks of Denmark,
Finland, France, Greece, Italy, the Netherlands, Norway, China and Surinam.
Negotiations were also under way at the close of the year for the reactivation
of the accounts of the central banks of Czechoslovakia, Bulgaria and Yugoslavia.
Currency measures undertaken in a number of European countries fol
lowing their liberation were reflected in arrangements for the receipt by this
bank for the account of the Netherlands Government and the Danish National Bank,
respectively, of Dutch and Danish currency deposited by holders in the United
States.
The owners of the currency turned in to us are to receive restitution
by the Dutch and Danish authorities if the latter are satisfied that the notes
are genuine and were acquired legitimately.
This bank also entered into arrangements during the year with three
foreign central banks to act as their agent in the purchase (and in some cases
also the sale) of cable transfers payable in their currencies.
Such an arrange
ment was made with the Bank of France for the purchase on its behalf of cable
transfers payable in French francs, first at the rate of $0.0201 l/8, and,
after the devaluation of the French franc on December 26, at $0.008382.
A
similar arrangement with the National Bank of Belgium calls for the purchase
and sale by us on its behalf of Belgian francs at the rates of $0.02275 and
$0.0228 7/8, respectively.
Coincidentally with the changeover of "registered
sterling" accounts to "American" accounts in July, this bank arranged to buy
and sell, on behalf of the Bank of England, spot sterling in "American" accounts.
1 - 8
This arrangement, however, constituted a revision of an earlier one made in
1940, the only difference being that, under the system of "American" accounts,
transactions are now consummated at "the rate of the day", rather than at a
guaranteed rate, as had been the case with respect to "registered" accounts.
Loans on Gold
In last year's report reference was made to the $100,000,000 loan,
against gold held under earmark at this bank, made to the Kingdom of the
Netherlands by a group of New York banks with the comment that, under the
circumstances, this loan might more appropriately have been made by the Federal
Reserve Banks.
Toward the end of 1945 the Federal Reserve Banks did make a
short-term loan to the same borrower similarly secured by gold, in the amount
of &35 million, at one per cent per annum.
It was understood that the proceeds
of this loan were to be used largely for the purchase in the United States of
urgently needed goods and that repayment would be made out of the "frozen"
Dutch funds in New York when they are unfrozen.
During the year the Federal
Reserve Banks also made further loans secured by gold to Uruguay, the largest
amount outstanding under this arrangement being $12 million.
As in previous
years, the loans were requested by Uruguay because of the shortage of shipping
facilities which retarded Uruguayan exports with a consequent delay in the
receipt of dollar exchange.
Gold Movements
The export of gold released from the earmarked holdings of foreign
central banks and governments, which first became evident in 1943, continued
during 1945, but at a considerably diminished rate, as compared with the
previous year.
The export of gold in 1945, amounting to $197 million, brought
the total from the beginning of the movement to about $1.2 billion.
amount, $955 million was exported in 1944 alone.
Of this
The net conversion by foreign
central banks and governments of their dollar holdings into gold, although
1 - 9
well below the aggregate amount so converted in 1944, nevertheless continued
to exceed the rate at which gold was exported.
As a result, the total of gold
held under earmark at this bank for foreign account rose to a new record high
of $4*2 billion in late December and closed the year at 1)4,191,000,000, to
show a net increase of $254 million for 1945.
FISCAL AG5NCY OPERATIONS
Approximately one-third of the expenses of the bank during 1945 were
incurred as fiscal agent of the United States subject to reimbursement by the
Treasury Department and other Government agencies.
In addition to the
issuance, exchange, redemption, safekeeping and servicing of United States
Government securities and securities issued by certain Government agencies,
and the issuance and processing of V, VT and T guarantee agreements, referred
to above, this bank acts as fiscal agent of the United States in connection
with:
(1) the handling of certain types of Government checks; (2) the
clearing of ration checks; (3) the receipt of amounts withheld on account of
income taxes under the Current Tax Payment Act of 1943 j (4) the control of
foreign funds under Executive Order No. 3339; (5) various foreign financial
transactions, such as the operation of the Stabilization Fund, the maintenance
of accounts here and abroad in connection with stabilization arrangements or
the financial requirements of our armed forces and governmental agencies.
Similarly, we act as fiscal agent for the Reconstruction Finance Corporation
and its various subsidiaries and for the Commodity Credit Corporation.
The
volume of most of these operations reached its peak late in 1944 or early in
1945 and began to fall off late in 1945.
Treasury Currency Reports
Early in 1945 the Treasury Investigative Unit began to be seriously
interested in the tax returns of holders of large denomination currency*
The
number of such notes in circulation had increased sharply during the war years.
1-10
Following newspaper discussion of the Treasury’s interest in large note
transactions, rumors developed in the press and on the radio to the effect
that the Treasury was contemplating calling in large denomination currency or
taking some other drastic action against persons who could not satisfactorily
account for their holdings of large notes.
The Treasury Department issued instructions effective June 1, 1945,
directing financial institutions to report monthly to the Federal Reserve Bank
or Branch in their district any large or unusual transaction in currency which,
in their judgment, was not commensurate with the legitimate business of the
individual or firm involved.
A Treasury Currency Reports Section was set up
in the Cash Custody Division of this bank to handle these reports.
We have
received, tabulated and turned over to the Treasury betvreen 5,000 and 7,000
reports a month.
Currency transactions in large denomination notes totaling
between $11 million and $13 million monthly were reflected.
This action by the Treasury and the rumors which preceded it led to
a return flow of large denomination notes which, during the year, enabled this
bank to retire to the custody of the Federal Reserve Agent notes of $50 to
$1,000 denominations aggregating $338 million.
Nearly two-thirds of this
amount, and four-fifths of the notes of $500 and $1,000 denominations, were
retired before the effective date of the Treasury Department's directive.
As
of November 30 there were still in circulation Federal Reserve notes of this
bank in denominations of $50 and over, totaling $1,848 million or nearly twice
as much as the total of £957 million in circulation on November 29, 1941.
Ration Checks
The volume of ration checks handled by the bank fell off sharply
toward the end of the year.
These checks, drawn on ration banking accounts in
member and nonmember banks, are received by us and forwarded to the drawee
banks for collection in the same manner as ordinary checks.
1 - 1 1
In March 1945,
the peak month, we handled 655,000 ration checks.
As various commodities ^ere
taken off the rationed list the volume declined rapidly.
At present the only
rationed commodity is sugar for which we are handling about 60,000 checks a
month•
Reconstruction Finance Corporation
In August, 194-5, the bank undertook to supplement the inventory
records maintained by it of the real and personal property, costing $820 million,
owned by the Defense Plant Corporation (now the Office of Defense Plants of
the Reconstruction Finance Corporation) to reflect the individual items of
property which have been sold or declared to be surplus and available for sale.
It is estimated that at least another year will be required for the completion
of this program.
Prior to November, 1945, the administrative expenses of the several
Loan Agencies of the Corporation were paid by its Treasurer.
On November 30,
194-5, the bank undertook to pay all administrative expenses, including payrolls,
of the New York Loan Agency of the Corporation through the issuance of checks
drawn on the Treasurer of the United States.
This program requires the
issuance by the bank of approximately 5,000 such checks per month.
The fiscal agency agreements between the several Federal Reserve
Banks and the Corporation were entered into in 1932 and remained unchanged
until 194-5.
Negotiations, the details of which were handled by our counsel
in behalf of this bank, were commenced early in 1945 between the Reserve Banks
and the Corporation for revised fiscal agency agreements defining in greater
detail the duties of the Reserve Banks.
These negotiations were concluded
satisfactorily with the execution of revised fiscal agency agreements which
became effective December 31, 1945.
Foreign Funds Control
The liberation of certain European countries, followed by the end
of hostilities and the consequent restoration of communications facilities and
1-12
sovereignty to the formerly occupied nations, caused many of the owners of
frozen assets in this country to reassert their rights and to put into use
these assets.
As a result there was an increase of more than 11,000 in the
number of applications for licenses filed with the bank in 1945 over the
number filed in 1944«
Following these developments, the Treasury Department
lifted some of the restrictions on the use of these assets.
This program,
referred to as "defrosting”, included certain safeguards intended to prevent
the release of property indirectly owned by enemy interests, which will ap
parently necessitate, for an indefinite period, the continued function of the
Foreign Funds Control, although on a constantly diminishing scale.
CHECK COLLECTIONS
One of the important services rendered by the Federal Reserve System
is the expeditious collection of checks for member and nonmember clearing
banks.
The volume of checks collected by this bank has grown very substantially
in recent years.
In October, for example, this bank collected 29.6 million
checks> an increase of 7% or nearly 3 million more than in October 1944.
These
figures include 9 million Government checks of which over 6 million were payable
”through” the Federal Reserve Bank of New York.
Officials of the bank and of the System, principally through the
Standing Committee on Collections of the Presidents Conference, are constantly
studying methods to facilitate and speed up the collection of checks and in
struments of all kinds.
Several important steps, described below, were taken
during 1945 to facilitate the handling of the increasing volume of checks.
New Routing Symbol
In June of this year the Federal Reserve System and the American
Bankers Association jointly launched a far-reaching program to have a new
routing symbol uniformly placed on all checks and drafts.
By means of this
symbol bank clerks everywhere should be able more quickly and accurately to
1 - 1 3
sort and list checks, thus speeding up their collection, or return if unpaid.
This bank has energetically advocated the adoption of this program through
correspondence and direct conversations with banks and numerous business con
cerns who are large users of checks.
By the end of November, investigation
shovred that at least some checks drawn on more than 300 banks in this district
bore the new routing symbol.
Use of Air Express
In October this bank began to use Air Express, on an experimental
basis, to forward its cash letters to most other Federal Reserve Banks and
Branches*
IThile transportation facilities are not yet back to normal, the
results of our experiment indicate that the use of air transport would eventu
ally save on the average at least one day in the presentation of inter-district
items.
Night Force Restored
Another factor speeding up the collection of checks in this district
has been the restoration of the night force of men in our Clearings Division.
The return of men from the armed services and the hiring of some additional
men has enabled us to rebuild this force to nearly its pre-war levels, while
at the same time the day force of women has been correspondingly reduced.
As
a result, it will soon again be possible to present all checks drawn on New
York City banks for clearings on the day of receipt*
BANK SUPERVISION AND RELATIONS
Membership
Six banks in this district were admitted to membership in the Federal
Reserve System during the year.
At the end of the year, there were 263 State
member banks and trust companies as compared with 132 nonmember State banks and
trust companies in this district.
86,« of all the commercial banks (national
banks and State banks and trust companies) in the district were members of
the System*
1 - 1 4
Farm Credit File
In 1944 the New York State Bankers Association, with the cooperation
of the Extension Service of the New York State College of Agriculture and the
various bank supervisory agencies, devised a Farm Credit File for use of banks
operating in agricultural sections.
Subsequently, the New York State Bankers
Association requested us to take over the distribution and servicing of this
file for the banks in New York State.
Believing that compliance with this
request would afford an opportunity to assist the smaller banks of the district
in their function of serving agriculture, we undertook in November 1945 to
distribute and service the file, not only for banks in New York State but also
for banks in those portions of Connecticut and New Jersey which are within the
Second Federal Reserve District.
The file consists of a special folder and
about a dozen forms which include credit statements, live stock appraisal
sheet, machinery and equipment inventory, certificate of search, order on
proceeds of produce, etc.
We feel that the information which should be found
in a properly maintained credit file, together with the banker's knowledge
and judgment, should enable the bank to serve adequately the credit needs of
its community and to grant borrowers the credit to which they are entitled
without exposing the bank to undue risks.
DESTRUCTION OF RECORDS
The Accounting Department, at the beginning of 1945, was using four
floors of the bank's Annex building at 95 llaiden Lane, aggregating approxi
mately 40,000 square feet, for the storage of the bank's records.
During the
year the Presidents Conference approved a recommendation made by one of its
committees that all the Federal Reserve Banks shorten the period of retention
of certain of their records»
As a result, this bank disposed of about 25$
of the records held in storage, thereby releasing for other use an entire
floor in the Annex building.
It is estimated that the records so disposed of
would occupy about 12,000 ordinary file drawers, and that these records
weighed approximately 240 tons#
RESEARCH STUDIES AND BANK PUBLICATIONS
The directors' committee on research and public information at its
meeting on April 26, 1945, suggested the following topics in the domestic
field as deserving of immediate and continuing study:
1.
2.
3.
4.
Banking and credit policy
Management of the national debt
The proposed Full Employment Act of 1945
(S. 380) to establish a national policy
and program for assuring continuing
full employment
Regional studies of particular interest to
the Second Federal Reserve District or
parts of the district.
Work had already been undertaken in each of these fields and was
carried on during the year, in some cases in cooperation with representatives
of other Federal Reserve Banks and of the Board of Governors in committee
activities.
To supplement the work of our own staff, Dr. Lawrence H. Seltzer
of Wayne University was engaged for work during the summer in the fields of
monetary policy and public debt management.
His study "The Banking System
and the Management of the Public Debt" has been distributed to the directors,
to other Federal Reserve Banks, and to the Board of Governors.
and memoranda completed during the year included the following:
Regional
Wartime Manufacturing Facilities Expansion
in the Second District
New York City's Commodity Exchanges
New York City as a Center of Wholesale Trade
Department Store Sales and Disposable Income
in New York State, 1929-44
Postwar Employment Problems in Paterson, N. J.
Economic Trends in Northeastern New Jersey
1-16
Special studies
Other studies in the domestic field
Some Aspects of Long-Run Postv/ar Problems
Per Capita Output in Various Segments of
the National Economy with Particular
Reference to the Service Industries
The Growth of the Service Industries
Outline and Critical Analysis of the Full
Employment Act of 1945 (S. 380 and
S. Res. 198)
National Debt and National Income
Critical Analysis of Postwar Federal Tax
Plans
Credit Policy after the ^ar
Limitations on Further Increase in Bank
Earnings
Analysis of the Implications of the Patman
Bill (H. R. 90)
In the foreign field a wide variety of studies was undertaken, in
addition to the continuing work of following monetary and general economic
developments in the foreign or international field.
Among the subjects studied
were methods of financing the operations of the International Bank and effects
of the organization and operations of both the International Monetary Fund and
the International Bank on the monetary and banking situation in this country,
possible control of capital exports from the United States, export credit
insurance, a plan for developing Latin American export credit information, the
British financial position and need for financial assistance, British financial
agreements with the United States and with other countries, monetary and
financial reorganization in European countries, and the nationalization of the
central banks of England, France and New Zealand.
The Chief and other members
of the Foreign Research Division participated in the work of the Staff Group
on Foreign Matters which was set up jointly by this bank and the Board of
Governors in the spring of 1945*
Following are the titles of a few of the studies in the foreign
field completed during 1945:
1 - 1 7
British Financial Agreements with Foreign
Countries (5 studies)
The British Loan Agreement
The International Trade Organization
Financing of International Bank for Re
construction and Development
Credit and Transfer Insurance for United
States Exporters
Regulation of Private Capital Exports from
the United States
Financial Position of China and Japan
Bank of Mexico and Its Problems
Monetary Reform in the Caribbean
Currency Reform in Holland
Belgian and French Monetary Policies
Foreign Missions
Five members of our research staff participated in foreign missions
during the year.
Two of these members were released for a few months to
participate in the Strategic Bombing Survey in Germany and one to participate
in a survey of handicraft industries in Italy.
Another member spent a few
weeks in Mexico at the invitation of the Bank of Mexico, and also spent nearly
three months in the Domin ican Republic on a joint mission with a member of the
staff of the Board of Governors to draft a plan of monetary and banking re
organization for that country.
The Manager of the Research Department was on
a leave of absence for most of the year serving first as a member of the
American Financial Mission to Iran, and subsequently as Treasurer-General of
Iran.
On his return trip to this country he visited the central banks of
India, Australia and New Zealand.
PERSONNEL
At the close of 194-5 the number of employees at the main office was
4,317, slightly less than at the 1944- year-end, and approximately 9$ below the
all-time high of 4,737 reached in July, 1944.
Indications are that declining
activity of certain departments of the bank, principally those performing
fiscal agency operations, will result in a substantially greater decrease in
personnel during 1946.
Turnover in 1945 was 26.09$, compared with 31.25% in
1944 and 47.2$ in 1943.
1-18
The reversal in trend of the labor market in 1945, particularly in
the second half, is indicated by an increase over 1944 of 26.7$ in the number
of applicants interviewed and a decrease of 24.4$ in the number employed.
Returning Veterans
During 1945, 226 returned service men and women were reinstated in
their former positions, or in higher job classifications, at salaries approxi
mating those which they might reasonably have expected had they been on the
bank*s payroll during the period of their military service.
to
Y7e have reason
believe that at least 106 men who were discharged from the service took
positions elsewhere, leaving 345 yet to be heard from.
Music
The success of our experiment with "Muzak11 in several departments of
the Cash and Collection Function led to its installation, in 1945, in the
Savings Bond Redemption Department.
Executive Training Program
The executive training program was continued in 1945 and its develop
ments during the year were covered in the President’s report to the directors
on November 29, 1945*
Job Relations Training classes (initiated in 1944) were
attended by 129 head office employees whose duties are of a supervisory nature.
Job Instruction Training classes were attended by 188 employees.
The ”Federal Reserve Club11
The Club has been increasingly active in the interest of bank
employees.
Additional athletic and hobby groups have been formed in an
attempt to bring together as many of the staff as possible for congenial "after
hours" diversion.
The Club Office, Club Store and Club Library were completely
refurnished and the latter enlarged.
Reaching out beyond the immediate
personnel of the bank, the Club, for the first time, arranged a party for
small children of employees.
Another 1945 innovation was the holding of the
1 - 1 9
bank's regular Christmas party elsewhere than in the bank building.
The
experiment was successful and similar arrangements for the 194-6 Christmas
party are under consideration.
BUFFALO BRANCH OPERATIONS
New Check Routing Symbol
Representatives of all commercial banks in Buffalo met at the
Buffalo Branch on Kay 11 to discuss the proposed new check routing symbol
sponsored by the American Bankers Association and the Federal Reserve Banks,
The representatives present were in favax of the adoption of the new symbol
and the improvement of the forms of checks used by their respective banks.
As indicated on page 13 above, this symbol is now in use; and the officers
of the Branch are continuing to advocate its adoption by banks in the Buffalo
territory.
Savings Bond Redemption Division
On July 28 the Savings Bond Redemption Division was moved from the
first and second floors of the Ellicott Square Building to the third floor of
the Merchants Mutual Building, which is adjacent to the Buffalo Branch building.
This move provided enlarged quarters and better facilities for closer super
vision and more efficient work.
During the month of December music was
introduced in this division and the results during the short period since
have been very satisfactory.
Seventh War Loan and Victory Loan Drives
During the year the Buffalo Branch increased its security activities
in connection with the Seventh and Victory Loan drives.
Prior to the latter
drive a letter was sent to all banks in the Branch territory calling their
attention to the notation on the subscription blanks to the effect that these
forms should be mailed to the Buffalo Branch, and further informing them
1-20
that
subscriptions for Series F and G Savings Bonds and Series C Treasury Savings
Notes could be forwarded to the Branch throughout the year.
As a result 4,929
subscriptions were received, aggregating $121,694,500, for the marketable
issues offered during the Victory Loan Drive, as compared with 1,313 subscriptions totaling $64,956,500 received during the Seventh War Loan Drive conducted
in the middle of 1945, and as further compared with 2,233 subscriptions
totaling 374,796,500 received during the Fourth, Fifth and Sixth War Loan
Drives in 1944#
Careful policing of the subscriptions during the Victory Loan
Drive resulted in the reduction or total rejection of subscriptions by an
amount of $1,090,000, and preliminary discussions prevented the offering of
many other subscriptions which would have been unacceptable to the United
States Treasury.
Likewise, 86 of the 118 banks in the territory forwarded to
the Branch their subscriptions for Savings Bonds or Treasury Savings Notes,
as compared with only 15 banks which had used the Branch's facilities for this
purpose during the Seventh War Loan Drive.
Personnel
The number of employees at the Branch increased from 202 to 221 as
the result, in part, of a further increase in certain fiscal agency operations
at the Branch which were formerly handled in New York.
In J/ay three Job Relations Training courses were conducted by a
member of the New York staff.
The classes were given in cooperation vtith the
Buffalo Chapter of the American Institute of Banking; and, in addition to
members of the staff at the Branch, thirteen representatives from seven com
mercial and savings banks attended.
Additional classes were conducted by the
American Institute of Banking and attended by five members of our staff, so
that all employees in supervisory positions at the Branch attended at least
one course.
It is the consensus that these courses have resulted in an im
proved approach to personnel problems.
1 - 2 1
FEDERAL RESERVE BANK OF NSW YORK
President's Report to Directors for 194-5
PART 2
STATISTICAL SUMMARY OF PRINCIPAL OPERATIONS OF THE BANK
AND THE BUFFALO BRANCH
Page
Accounting, Planning and Service ..................
...
2-
2
Bank Supervision and Bank Relations....................
5
Cash and Collections . . . . . .
7
Foreign
........... . . . . . . .
• .............
.
Government Bond and Safekeeping
....................
11
14.
Loans, Credits and R. F. C. C u s t o d y .............. . . »
17
Open Market Operations, Treasury Issues,
and Kargin Regulations ........... ................. .
22
Personnel
24-
.................... .
Buffalo Branch ................................. . . . .
(Officers named under each function are those in charge March 194-6)
2 - 1
26
PART 2
STATISTICAL SUHILARY
STATISTICAL SUMMARY OF PRINCIPAL OPERATIONS
OF THE BANK BY DEPARTMENTS
ACCOUNTING, PLANNING AND SERVICE
Officers in charge:
%
Herbert H. Kimball, Vice President
Otto W. Ten Eyck, Assistant Vice President
Spencer S. Marsh, Jr., Manager, Accounting Department
James J. Carroll, Manager, Planning Department
ACCOUNTING DEPARTMENT
Accounting Division
1944
Entries posted to reserve, and
nonmember clearing accounts
Penalties assessed for reserve
deficiencies
Transactions with other Federal
Reserve Banks
Disbursing Division
Employee compensation
payments, including
overtime
Checks cashed for employees
(approximate)
Petty cash payments
(approximate)
Checks drawn other than
pay checks
Claims for reimbursement of
Fiscal Agency expenses
1945
4,016,362
4,075,272
136
177
4,485,755
4,197,248
Number
1944
Amount
(000 Omitted)
Number
1945
Amount
(000 Omitted)
186,300
$9,620
171,369
$9,691
30,000
-
32,000
-
16,200
217
12,000
145
8,700
5,976
9,336
5,491
400
5,379
429
5,303
2 - 2
PART 2
STATISTICAL SUMMARY
Tabulating Division
Receipts for compensation paid employees
Advices of immediate and deferred credits
to banks arising from check clearings
Cards punched incident to maintenance of
records of this bank's expenses
!,Ins and outs" affecting punch card records
of securities held in safekeeping
Coupon-cutting requisitions covering se
curities held in safekeeping
Cards punched to record Series E Savings
Bonds sold by issuing agents in Second
Federal Reserve District other than
during Loan drives
Cards punched to record sales of securi
ties in Second Federal Reserve District
during war loan drives
Cards punched in preparing reports oi
Series E Savings Bonds redeemed in
Second Federal Reserve District
Withheld Taxes Division
440,000
100,000
125,000
200,000
225,000
150,000
170,000
150,000
150,000
,
1 400,000
650,000
250,000
Amount
(000 Omitted)
Number
1945
Amount
(000 Omitted)
743,177
$1,567,420
780,468
$1,727,173
738,758
1,548,918
768,885
1,714,147
117,687
157,440
120,203
174,066
2,885
920 qualified depositaries in 1944; 915 in 1945.
440,000
1944
Number
Depositary receipts and
withheld taxes received
from banks-x
Depositary receipts re
ceived from Collectors
of Internal Revenue
Largest number of receipts
received from any one
bank (Manufacturers
Trust Company)
Duplicate receipts issued
to replace originals
lost by employers
1944
1945
(Approximate No.;
160,000
155,000
2 - 3
3,971
PART 2
STATISTICAL SUIiFARY
SSRVICS DEPARTMENT
Food Supply Division
1944
Number
670,093
2,241
13,956
46
Meals served in cafeteria
Daily average
Meals served in dining room
Daily average
Post Office Division
Receipts
$209,14-3.4$
690.25
14,537.51
47.97
194-5
Number
Receipts
702,01^ £204,^70.56
2,324
669.51
14,694
15,490.52
48
50.62
1945
Pieces handled
1944
Pieces handled
Registered Mail
Incoming
Outgoing
1,796,066
398,127
371,976*
360,942
Ordinary Mail
Incoming
Outgoing
8,833,568
6 ,878,918
7,770,501
4,013,691*
The reduction in the volume of incoming registered mail and outgoing
ordinary mail was due, respectively, to a decrease in the number of
United States Savings Bonds received by mail for redemption, and the
checks mailed in payment therefor.
Telephone Section
1945
1944
1,297,034
Number of calls handled
1,1417335
Protection Division
1945
1944
(3 months)
Reservations Made
Rail
Air
Hotel
Theatre Tickets, etc.
481
37
120
144
1
52
77
248
BUILDING OPERATING
Power Plant Division
Lbs.
Total amount of steam used
(a) For generating
electricity
(b) Air Conditioning
turbines, heating and
other purposes
Electric current generated
(a) Used for lighting
(b) Used for poY;er
KW Hrs.
n
tt
Pounds of steam required to
generate one KWH of current
1944
200 , 702,000
1945
206 , 820,000
195,947,300
199 962,600
4,754,700
6,357,400
5,430,280
2 , 323,600
3,106,680
5,568,930
2,495,560
3,073,370
3 6 .0 8
2-4
,
3 5 .9 1
PART 2
STATISTICAL SUMMARY
On September 22, 194-5 the Power Plant, which, since January 31, 194-3,
had been operated with steam purchased from the New York Steam Corporation, was
reconverted to the use of fuel oil, and since that time all steam required has
been generated in our own boilers. On the basis of present conditions and the
present price of fuel oil it is estimated that this reconversion will result in
a decrease of $29,394- in the expenses for 194-6 as compared with 194-5.
■ if-
•>(■
-/<■
- '( •
-Jr
-)f
BANK SUPERVISION AND BANK RELATIONS
Officers in charge :
Reginald B. V.riltse, Vice President
rilliam F. Sheehan, Chief Examiner
Franklin E. Peterson, L'anager, Bank Relations Department
BANK EXAMINATIONS DEPARTMENT
Bank Examinations
Regular Examinations:
Jointly with Wew York State Examiners
Jointly with New Jersey State Examiners
Jointly with Connecticut State Examiners
Independently
For Membership:
Jointly with New York State Examiners
Jointly with New Jersey State Examiners
Jointly with F.D.I.C. Examiners
Independently
Total
1944169
75
5
2
251
4
2
1
17
1945
ÏV2 •
65
6
263
-_
1
-
2
24
273
3
¿66
Trust Department Examinations
Regular Examinations:
Jointly with New York State Examiners
Jointly with New Jersey State Examiners
Jointly with Connecticut State Examiners
Independently
For Membership:
Jointly with New York State Examiners
Jointly with New Jersey State Examiners
Jointly with F.D.I.C. Examiners
Independently
Total
20
7
3
135*
1
2
1
11
165
35
12
3
126** 176
1
-
15
ÏÏÏ0
1
1
2
Ï73
During 1945, all State member banks and their trust departments were
examined once. Six State banks were admitted to membership in 1945, compared
with twenty-one in 1944* Two applications for membership were in process on
December 31, 1945, compared with six on December 31, 1944»
* Includes 27 examinations in which the State Examiners participated to the
extent of checking the securities to the records of the trust department
involved. Does not include investigations requested by Board of Governors
of the Federal Reserve System of trust departments of 2 national banks, in
liquidation, as required by Section 16(c) of Regulation F.
** Includes 29 examinations in which the State Examiners participated to the
extent of checking the securities to the records of the trust department
involved.
http://fraser.stlouisfed.org/
2-5
Federal Reserve Bank of St. Louis
PART 2
STATISTICAL SUÎÎMARY
BANK RELATIONS DEPARTMENT
During 194-5 there were 1,082 visits made to banks as compared with
1,020 in 1944. Officers of the bank visited 187 member banks and 62 nonmember
institutions, as compared with 73 and 36, respectively, in 1944* Special
representatives made 711 visits to member banks and 122 to nonmember banks as
compared with 699 and 212, respectively, in 1944* Officers and members of the
staff attended 130 group meetings in 194-5 and a like number in 1944. Addresses
were made before bankers associations, trade organizations, clubs and various
other groups, as follows:
SUBJECT
War Finance
Farm Credit File
Check Routing Symbols
Federal Reserve System
Regulation Q
Other Banking Subjects
Total
194-4-
1945
2
6
10
5
1
2
1
_6
18
15
During last year 559 visitors were shown through the bank, as com
pared with 390 in 1944. This involved a total of 164 tours, compared vdth 150
in 1944»
tc
•>!- -><■ -Jr -X- •>£
2 - 6
PART 2
STATISTICAL SUMMARY
CASH AND COLLECTIONS
Officers in charge;
Valentine Willis, Vice President
Harold A. Bilby, Assistant Vice President
Dudley H. Barrows, Manager, Cash Department
Ralph W. Scheffer, Manager, Check Department
Roy E. Wendell, Manager, Government Check Department
Paul R. Fitchen, Manager, Cash Custody Department
Michael J. McLaughlin, Manager, Collection Department
CASH DEPARTMENT
Receiving Division
1944
Number of
Amount
Deposits
(000 OmittedJ
Received over counter Checks
51,742
$24,917,925
Currency
61,183
3,336,540
Currency received by mail
932,756
38,031
Currency received by express
15,131
64,884
Sorting and Counting Division
1944
Number of Pieces Counted:
1 *s
2»s
5's
10*s
20's
50's
100's
500's
1000*s
5000*s
lOCOO’s
Currency sorted as unfit:
Number of Pieces
Value
Errors found in deposits of
currency
Counterfeits detected
U. S. .currency received as fiscal agent
under General Ruling No. 5:
Separate lots
Value
1945
Number of
Deposits
Amount
(000 Omitted)
43,562
$30,431,180
62,412
3,621,375
1,049,730
38,344
15,295
66,273
2-7
1945
366,085,323
11,779,283
145,837,265
187,153,361
45,596,605
4,735,819
5,619,878
70,091
53,329
581
3,612
766,935,1^7
374,522,533
9,701,873
142,696,455
184,412,818
39,896,685
4,960,634
5,836,031
172,745
132,536
476
5,149
^62,337,955
209,744,124
$653,721,874
231,082,412
$840,252,404
10,535
455
12,527
295
502
$2,670,641.45
441
$1,671,743.47
PART 2
STATISTICAL SUMMARY
Paying Division
1944
Number
Payments of currency to:
Individuals and Govern
ment Officers
Banks over the counter
Banks by mail
Cash payments of Govern
ment coupons
Federal Reserve notes
shipped to banks in
Boston and Philadelphia
districts
1945
Amount
(0l)0 Omitted)
Number
Amount
(OOb Omitted)
123,223
39,825
85,352
$ 163,744
3,950,568
913,226
98,490
39,385
87,149
$ 114,845
4,030,850
' 877,968
589
28
532
19
15,873,624
172,978
16,896,072
185,867
Coin and Bullion Division
Coin handled:
1944
1945
Amount
Received***
¿¿2,745
162,249,263
Pieces
Received*
2,1^4,377,185
2,187,153,947
Pieces
Paid Out
1944
1945
Amount
Paid Out
'155,273,300
161,840,583
¿7165,347,S59
2,237,916,388
Pieces
Counted*
1741373 &7ÖÖB
1,491,254,000
Amount
ürapped**
13,$61,000
13,517,000
* The difference between Pieces Received and Pieces Counted is due
to the fact that (1) new coin received from the Mint is not
counted, and (2) certain coin is deposited under special arrange
ments for the account of certain member banks pursuant to which
some or all of the coin is paid out to such banks the following
day ?ri.thout being counted by us.
** This coin was wrapped in accordance v/ith our practice of furnish
ing the smaller out-of-town banks with a limited amount of
wrapped coin.
:-** The amount received includes new coin received from the Mint and
silver dollars received from the Assay Office as follows:
Cents
Nickels
Dimes
Quarters
Halves
Dollars
1944
3 2,7^0,000
1 , 200,000
3 , 600,000
7 , 200,000
800,000
315,550,000
2 - 8
1945
$ 2 ,000,000
900,000
1,700,000
5,000,000
600,000
940,000
$11,140,000
FART 2
STATISTICAL SUMMARY
CASH CUSTODY DEPARTMENT
Currency, coin and earmarked gold are held in the vaults under control
of this department. Earmarked gold transactions during 1945 compared with 1944
were as follows:
Received for earmark:
Bars
Bags of Coin
Released from earmark:
Bars
Bags of Coin
Gold held under earmark
at year end:
Bars
Bags of coin
_________1944
1945_________
Number
Value
Number
Value
(()00 Omitted)
(000 Omitted)
99,066
$1,392,606
64,675
§ 937,861
1,493
13,279
5
62,099
858,070
52
36,768
410
313
513,243
2,321
274,359
3,851,584
302,266
4,276,202
13,427
91,351
13,119 89,030
CHECK DEPARTMENT
The following table shows the number of items handled in the Check
Department in 1945 as compared with 1944:
1944
1945
Clearings Division
97,420,51^
34,327,63*7
Transit Division
129,606,559
135,405,453
City Collection and
Return Items Division:
Hand presentations
20,892
25,163
Return items
2,356,707
1,572,034
COLLECTION DEPARTMENT
1944
Noncash items handled for collection
(a) Country Collection Division
(b) Coupon Collection Division
Peak days - January 3, 1944;
January 2, 1945
Government coupons paid
Peak days - September 15, 1944;
December 15, 1945
Wire Transfers of funds
Number
Value (000 Omitted)
2 - 9
1945
430,050
645,886
414,286
601,356
23,225
5,669,734
20,290
6,473,837
713,334
821,151
159,418
£76,401,524
166,389
077,46 8,401
PART 2
STATISTICAL SUMMARY
GOVERNMENT CHECK DEPARTMENT
1944 .
Number
Amount
(000 Omitted)
Treasury "paper" checks handled
for collection
18,202
Punch-card checks payable
nthrough" this bank:
(a) Dependency Benefit checks
50,369
(b) Brooklyn Navy Yard checks
3,792
(c) Regional Disbursing Officer
checks
7,492
Punch-card checks payable "through"
other Federal Reserve Banks
12,084
Total Government checks handled
Number of ration checks handled
91,939
5,686*
1945
Number
Amount
(000 Gnitted)
$26,750,538
14,346
$23,104,310
2,688
256
52,160
3,272
3,237
271
1,344
13,716
3,015
1,471
18,265
2,392
$26,756,297
101,759
§23,113,225
5,925**
Treasury "paper" checks handled
Peak day: January 6, 1944, 141,337 - December 14, 1945, 99,734
Card Checks handled
Peak day: November 13, 1944, 885,314 - February 13, 1945, 989,500
* Handled by the City Collection and Return Items Division, Check Department#
** This activity was transferred to the Treasury Check Division, Government
Check Department, on February 5, 1945, and the figures for the entire
year 1945 are shown here.
2-10
PART 2
STATISTICAL SUMMARY
F0R5IGN
Officers in charge;
L. Werner Knoke, Vice President
Norman P. Davis, Assistant Vice President
Horace L. Sanford, Assistant Vice President
Daniel J. Liddy, Manager, Foreign Department
Peter P. Lang, Acting Manager* Foreign Department
Harold M. Wessel, Manager, Foreign Funds Control Department
FOREIGN DEPARTMENT
Foreign Operations Division
Foreign Accounts Section
Foreign Accounts held under
section 14(e) of the Federal
Reserve Act:
Dollar
Earmarked gold
Foreign account
Domestic account
Security custody
U. S. securities
All other
Foreign currency held
December 31, 1944
Number
Amount
(0ÒÒ Omitted)
$1,155,387
51
41
-
3,550,603
-
13
789,546
23,837
—
—
Total
Dollar payments and
receipts
Items received for
collection
Gold deposited or withdravm from earmark
Receipts and deliveries of
securities and bills
Applications for Foreign
Funds Control licenses
Reports to Foreign Funds
Control of transactions
effected
Total
40
1
16
2
$5,519,373
1944
Volume of transactions
in such accounts
December 31, 1945
Number
Amount
(000 Omitted)
$ 822,039
54
Transac
tions
Amount
(000 Omitted)
3,640,017
102,814
1,484,004
21,161
104
$6,070,139
1945
Transac
tions
Amount
(00Ô Omitted)
35,978
$ 6,627,467
43,614
$ 6,538,008
22,373
601,970
32,582
759>226
532
2,877,844
278
1,232,360
1,027
4,783,466
1,065
8,384,457
439
249
60,598
2-11
-
$14,390,74^7
475
-
310
7ä,3&
-
PART 2
STATISTICAL SUMMARY
Foreign .Exchange Section
Foreign Accounts held as
Fiscal Agent of the United States
December 31, 1944
dumber
Amount
Dollar
Earmarked gold
Security custody
U. S. securities
December 31, 1945
Number
Amount
(000 Omitted)
3 38,960
7
4
550,993
-------
Tööö^oTEHT
7
4
$ 46,050
386,567
1
169,977
169,977
$602,594
$759,930
Total
Volume of transactions
1944
Bank Functions
Foreign exchange and
related transactions
effected for foreign
correspondents and
member banks
Trans actions
Amount
(000 Omitted)
5,470
487
64
174
1,343,491
1,303,964
47
167
887,323
873,766
602
202,158
666
108,922
22
4
162,700
174*977
60
430,788
559
442,248
693
887,986
Drafts, cable transfers,
and payments for account
of Treasurer
2,134
973,249
2,209
530,646
Interdistrict Settlement
Fund
41
1 ,251,000
20
555,000
Deposits and withdrawals of
gold held for Treasurer of
U. S. and various Government
agencies
31
804,737
17
365,077
734
699
408
421
1,820
1,984
1,523
1,554
35
27,347
5,606
06,692,170
507
Fiscal Agency Functions
Stabilization Fund
(a) Gold purchased
(b) Gold sold
(c) Foreign exchange
purchased and sold
Foreign accounts held
as fiscal agent
(a) Gold earmarks and
releases
(b) Security custody
(c) Dollar receipts, disburse
ments and collections
Drafts, checks, etc», handled
under General Ruling No. 5A:
Items impounded
Items released
Affidavits on imported
fine gold bars
Total
2-12
$
1945
Transactions_____ Amount
(OOO Omitted)
£
6,257
41,308
8,172
$4,690,150
PART 2
STATISTICAL SUMMARY
Reports and Analysis Division
Number of exchange ratés certified
Number of reports tabulated
* Exclusive of special studies
¡L944
6,117
10,731*
and reports.
Cable Division
Number of cablegrams and
radiograms handled
FOREIGN FUNDS CONTROL DEPARTMENT
Number of applications for licenses received
Daily average of same
Census reports of foreign-owned property
received (TFR-300)
Census reports of American-owned property
abroad received (TFR-500)
Reports of transactions under licences
received
Average weekly number of reports of payments
from free foreign accounts received
Number of names on which files of enforcement
information are maintained
Personal interviews conducted
* Approximate - Discontinued during 1945
1945
'T,7TZ
11,174*
-X- -X -X- -X-
2 - 1 3
1944-
1945
9,747
13,834
1944
72,6$6
238
1945
03,716
277
15,564
4,265
9,456
351
209,210
47,292
750*
500*
250,000*
7,280
260,000*
8,587
PART 2
STATISTICAL SUMMARY
GOVERNiCNT BOND AND SAFEKEEPING
Officers in charge:
J. Wilson Jones, Vice President
John H. Wurts, Assistant Vice President
William F. Abrahams, Manager, Security Custody Department
Harry M. Boyd, Manager, Savings Bond Redemption Department
Y’esley W. Burt, Manager, Government Bond Department
Charles N# Van Houten, Manager, Safekeeping Department
GOVERNMENT BOND DEPARTMENT
Par Value Handled
Number of Pieces Handled _____ (000 omitted)
1945
1944
United States Savings Bonds
Deliveries to agents on
consignment
Payments and stubs re
ceived from agents
Direct Sales
Reissues and corrections*
1TTar Savings Stamps
Sales and rademptions
All Other Government Issues
Payments for new issues
Denominational exchanges
and wire transfers
Redemptions and transfers
of registered securities
and exchanges
Redemptions of bearer se
curities and tax notes
Redemptions of adjusted
service bonds
Volume Handled
37,883,708
29,552,266
36,008,385
1,938,795
279,859
29,461,387
1,442,756
319,943
11,650*:-*
1944
v
7,159**
1945
2,203,945 0
1,777,486
2,053,459
700,970
35,764
1,715,721
578,935
37, 506
232
127
1,155,588
1,084,800
69,890,718
82,353,119
559,687
866,166
16,978,680
21,297,232
104,929
140,901
1,394,918
1,410,552
809,482
745,731
50,663,881
74,752,684
21,635
660,381
1,081
78,773,718
64,280,490
33,079
0143,923,648 0183,956,4a
* Transferred from Savings Bond Redemption Department in October, 1944*
** Number of albums.
Tar Loan Deposit Accounts: The activity in War Loan Deposit Accounts main
tained by qualified depositaries, as measured by the sum of deposits and with
drawals, increased from $40,041,796,000 in 1944 to $45,839,057,360 in 1945.
2 - 1 4
PART 2
STATISTICAL SUMMARY
SAVINGS BOND REDEI-iPT.IQN DEPARTMENT
Redemptions of
U.S. Savings Bonds,
Series A-E*
1944
Number of pieces
redeemed
Redemption value
of bonds redeemed
Maturity value of
bonds redeemed
1945
10,986,000
18,289,000
$328,667,000
3576,696,000
$434,554,000
¿¿756,904,000
* Series F and G bonds are transmitted to Division of Loans and Currency
of the Treasury Department in Chicago for redemption.
Redemptions of
Series .A^E Bonds
by Denomination
$10*
1944 (Pieces) 10,298
1945 (Pieces) 398,629
$25
050
$100
$200
8,875,014 1,330,164
662,217 13,923,724 2/34,347 1,274,154 70
$500
$1,000
58,504
110,358
50,593
97,999
* Issued only to members of the armed forces,
SAFEKEEPING DEPARTMENT
1944
Accounts
Par Value
(000 Omitted)
Savings bonds held
for ovTiers
35,630
Securities held for
member banks
1,019
Securities held for Treasury
and special accounts
207
Notes and acceptances held
for member banks
10
1945
Accounts
Par Value
(000 Omitted)
52,469
38,987
3,760,373
1,029
3,598,613
2,901,172
202
2,925,503
3,677
8
3,821
$
$
60,595
Volume of pieces handled in the foregoing accounts:
Pieces received
Pieces delivered
_______ 1944
__ ______ 1945______
Number
Par Value
Number
Par Value
(000 Omitted) — —— — — — (ooo Omitted)
43,987,853 $252,479,821 33,395,996 $298,890,482
42,432,336
235,717,675 33,609,555
283,251,747
2 - 1 5
PART 2
STATISTICAL SUMMARY
Securities impounded by the Treasury Department under General Ruling
No. 5, issued under Executive Order No. 8389 (Foreign Funds Control), were
handled as follows:
Number
Items received
Items delivered
9,020
8,702
1944
Par Value
(000 Omitted)
$43,498
31,600
Number
13,688
10,324
1945
Par Value
(000 Omitted)
$65,020
56,788
Original issue transactions handled for the Treasury Department and
its various agencies:
Over Window
Safekeeping
Shipped by Registered Kail
wired to Other Reserve Banks
wired from Other Reserve
Banks for delivery in
New York
Total
1945
Items
1944
Par Value
33,331
8,879
59,277
774
$28,805,930,900
39,390,420,500
1,403,433,000
720,255,000
10,080
6,364,209,500
112,341
$76,684,248,900
Items
Par Value
31,517 $26,131,347,500
7,203 51,815,765,000
53,092
1,512,216,000
516
468,982,000
8,018
100,346
7,790,836,000
$87,719,146,500
SECURITY CUSTODY DEPARTMENT
The following table shows deposits and withdrawals of securities in
the vault during 1945 as compared with 1944 in the following classifications
(which are more fully explained at page AP - 11 in the Appendix):
No. of
Pieces
(i) Safekeeping and
Open Karket*
Deposits
Withdrawals
(2) R. F. C.
Deposits
Withdrawals
(3) Unissued stock
Deposits
Withdrawals
(4) Coupons
Detached
Re-attached
Par Value
(ÔÔO Omitted)
No. of
Pieces
Par Value
(000 Omitted)
775,153
572,091
$101,480,260
89,923,752
918,814
851,795
$117,300,066
110,607,440
29,074
136,470
587,755
799,452
24,277
75,417
340,885
522,295
43,106,070
41,752,515
150,999,560
144,258,644
32,373,037
32,537,496
181,249,529
172,122,011
1,930,655
186
466,349
328
1,986,459
1,080
624,269
257
Open Market Account transactions included in (1) were approximately as
follows:
Deposit Tickets
1,847
1,499
29,133,605
43,048,753
33,535,862
Withdrawals
327
394
21,943,491
2-16
PART 2
STATISTICAL SUMMARY
LOANS, CREDITS AND R. F. C. CUSTODY
Officers in charge:
Arthur Phelan, Vice President
Felix T. Davis, Assistant Vice President
Curtis R. Bowman, Manager, Credit Department and Discount Department
CREDIT DEPARTMENT
Regulation V (Financing of ^ar Production and Far Contract Termination)
A comparison of the activities of the Credit Department under
Regulation V for the years 1944 and 1945, follows:
Applications iur v’ Loan Guarantees Acted Upon During Year
Held over from previous year
Received during year
Less:
Withdrawn before considera
tion
Held over into next year
Net applications acted on
1944
“ 73
396
441
1945
16
135
131
34
16
391
21
T%5
Amount of
Proposed
Amount
Loans
Guaranteed
No.
(0C0 Omitted)
Action taken on applications:
Declined
43 $
16,930* $
Approved (gross number)
348 1,052,517* 914,479*
Less:
Applications withdrawn
after approval, or ap
proval canceled
29,668*
24,721*
47
Approved (net number)
301 1,022,849
889,753
* Revised
Applications for T Loan Guarantees Acted
1944
Held over from previous year
Received during year
-
37
37
Less:
Withdrawn before consideration
Held over into next year
Net applications acted on
2
14
21
2 - 1 7
Amount of
Proposed
Amount
No.
Loans
Guaranteed
(000 Omitted)
9 $ 4,325 3
121 219,296 185,399
9
112
4,850
214,446
4,227
181,172
Upon During Year
1945
—a
105
m
6
-
m
PART 2
STATISTICAL SUMMARY
Amount of
Proposed
Amount
No.
Loans
Guaranteed
Action taken on applications:
( C O Ô Omitted)
Declined
- *
$
Approved (gross number)
21
9,650
8,192
Less:
Applications withdrawn
after approval, or ap
proval cancelled
Approved (net number)
21
9,650
8,192
Approved (net number V
and T combined)
322 $1,032,499 ¿897,950
Amount of
Proposed
Amount
Loans
Guaranteed
No.
(000 Omitted)
"
3 &
695 3
110
42,988
38,147
4,359
38,629
14
96
3,852
34,295
208 ¿253,075 $215,467
Guarantees Outstanding at Year 5nd
(000 Omitted on dollar amounts)
T Loans
V Loans
No.
December 31, 1944
December 31, 1945
130
Amount of
Loans
Authorized
$3,277,511
665,954
Regulation W
Guarantors 1
Risk in
Loans
Authorized
$2,807,2b6
542,469
Guarantors1
Risk in
Amount of
Loans
Loans
No. Authorized Authorized
15
5'5,550""
è 4,753
23,150
64
20,373
(Consumer Credit)
Changes during the year in the registrations of persons licensed
to engage in consumer credit activities under Regulation W were as follows:
Number
1944
Registrants at beginning of year
Registration certificates issued during year
-x-Registration certificates cancelled during year
Registrants at end of year
19,574
513
621
19,466
1945
19,466
660
669
19,457
* All cancellations resulted from discontinuance of business by registrants.
No licenses were cancelled or suspended during either year as a
punitive measure.
Enforcement Activities (including Buffalo Branch):
Number of registrants inspected
Credit transactions examined:
Instalment sales
Charge sales
Instalment and single payment loans
Disciplinary conferences held, or letters
written to apparently willful violators
2 - 1 8
1944
2,ës2
1945
¿,413
181,113
111,256
1,821
142,724
58,980
220
86
63
PART 2
STATISTICAL SUMMARY
The relatively small number of loans inspected by our staff is due
to the fact that, in accordance with arrangements made by the Board of
Governors of the Federal Reserve System, the policing of most of these trans
actions is conducted by the respective Federal and State supervisory agencies
concerned with the general activities of such lenders.
DISCOUNT DEPARTMENT
Applications from member banks for advances against United States
Government obligations were received and processed as follows:
1944
1945
Number of applications received
2,115
3,004
Number of banks accommodated
202
261
Aggregate borrowings (000 Omitted)$11,036,595
$20,648,435
Borrowings on peak day:
Nov. 29
June 9
Number of banks
67
85
Amount (000 Omitted)
$463,695
$702,090*
-x Highest since March 14, 1933 when 471 banks borrowed 3728,057,000
of which -¿157,000,000 was rediscounted by'us with other Federal
Reserve Banks.
During 1945, 1,093 loans aggregating $4,790,539,000 were repaid wholly or in
part before maturity, while during 1944 there were effected 724 prepayments
aggregating $2,055,615,000.
R. F. C. CUSTODY DEPARTMENT
During the year amounts received and paid out for the account of the
Commodity Credit Corporation, the Reconstruction Finance Corporation and
certain of its subsidiaries in connection with the purchases and sales of com
modities were as follows:
Number of
Commodities
Acquired
Commodity Credit Corporation
307,669 Dairy Production, 3eef,
Sheep and Lamb drafts paid
Reconstruction Finance Corporation
Office of Defense Supplies
Office of Metals Reserve
Office of Rubber Reserve
Rubber Development Corporation
U. S. Commercial Company
2 - 1 9
314
Amounts
Amounts
Disbursed
Received
— 1'T
'sA'^ OmittedJ
(000
£448, 528
$418,563
48,056
71
80
102
119,077
110,010
8,121
51,180
595,320
228,408
400,817
73,079
178
223,757
PART 2
STATISTICAL SUMMARY
Loans made by the Smaller ,,Tar Plants Corporation, the Reconstruction
Finance Corporation and certain of its subsidiaries were serviced during the
year as follows:
Number on books
at end of year
Federal National Mortgage Association
Reconstruction Finance Corporation
RFC Mortgage Company
Smaller War Plants Corporation
26
469
240
134
Balance due
at end of year
(000 Omitted)
95,000
679,809
2,507
7, 820
In connection with loans serviced for the Smaller TTar Plants
Corporation, the Reconstruction Finance Corporation and its subsidiaries,
receipts, disbursements and collateral held at the end of the year were as
follows (000 Omitted):
Amounts
Disbursed
Federal National Mortgage Association
Reconstruction Finance Corporation
RFC Mortgage Company
Smaller War Plants Corporation
Amounts
Received
5 1,801
234,155
1,429
35,532
32,383
160
-
Collateral
held at end
of year
1
93
998,785
2,456
1,625
Transactions were effected for account of the Reconstruction Finance
Corporation (Office of Defense Plants) during 1945, as compared with 1944, as
follows:
Number of
Amounts
Amounts
Year
Projects
Disbursed
Received
(000 Omitted)
(Ó0Ò Omitted)
1944
400
$124,448
$91,926
1945
456
74,031
55,866
Machinery and equipment, etc., owned by the Reconstruction Finance
Corporation (Office of Defense Plants) declared surplus or transferred from
one plant to another during the year 1945 were as follows:
Aggregate cost value of
machinery and equipment,
land and buildings, etc.,
declared surplus
(Ö00 Omitted)
Aggregate cost value of
machinery and equipment
transferred to projects
functioned by this bank
(ÒÙÓ Óraiiteci)
Aggregate cost value of
machinery and equipment
transferred from projects
functioned by this bank
(000 Omitted)
$26,017
$16,354
$9,973
The sales and rentals of surplus war property, including aircraft,
by the Reconstruction Finance Corporation during the year were as follows:
Number of Sales
and Rentals
Amount
Received
(000 Omitted)
$21,653
6 ,3 8 3
2 - 2 0
PART 2
STATISTICAL SUMMARY
Checks drawn on the Treasurer of the United States for the account
of the Commodity Credit Corporation and the Reconstruction Finance Corporation
during the year were as follows:
Number of
Checks
Amount
133,308
$1,476,384,176.30
Transactions were effected for the account of the War Damage
Corporation during the year 1945, as compared with 1944, as follows:
Year
--1944
1945
Premiums
Received
(000 ômiitedj
$2,440
253
Policies
Covered
(Approximate)
a , 839
7,710
2-21
Policies Renewed
Without Cost
1.275.000
1.350.000
PART 2
STATISTICAL SUMMARY
OPEN MARKET OPERATIONS, TREASURY ISSUES,
AND MARGIN REGULATIONS
Officers in charge:
Robert G. Rouse, Vice President
Loren B. Allen, Assistant Vice President
Norman P. Davis, Assistant Vice President
Silas A . Miller, Assistant Vice President
Marcus A . Harris, Manager, Securities Department
SECURITIES DEPARTMENT
Bill Division
1944
Transactions in bankers
Number
Value
acceptances for account of
(a) System Open Market Account
(b) Federal Reserve Bank of N.lr. (c) Member banks
(d) Foreign correspondents
653
$10,077,925.79
Securities Division
25
708
Amount
(UUO Omitted)
Purchases of Securities
System Open Market Account:
Open Market Transactions
2,030 $25,145,321
Special Certificates of
Indebtedness
Received in exchange from Treasury
10
4,012,734
Federal Reserve Bank of New York:
U.S. Treasury Bills under re
purchase option
23,259,312
4,247
Member Banks
67,676
1,199
Government Accounts
72
42,362
Other Federal Reserve Banks
132
16,633
525,500
Foreign Correspondents
93
7,703 $53,009,538
Sales and Redemptions of Securities
System Open Market Account:
Open Market Transactions
425 $ 740,282
52
Redemptions
17,240,475
Special Certificates of
Indebtedness
Tendered in exchange to Treasury
17
4,012,734
Federal Reserve Bank of New York:
U.S. Treasury Bills under re
23,153,282
purchase option sold and redeemed 2,976
Member Banks
1,402
39,377
Government Accounts
258,345
.193
2,502
Other Federal Reserve Banks
36
52
235,754
Foreign Correspondents
5,153 $45,682,'7 5l
2-22
Value
$
500,187.13
11,107,731.98
1945
1944
Trans
actions
1945
Number
Trans
actions
Amount
(0U0 Omitted)
1,680
$35,911,092
5
14
488,000
6,684,661
4,002
1,069
2
19
141
6,932
27,578,751
66,073
1,035
6,680
657,500
*71,393,792
316
52
$ 654,334
30,708,867
6
15
4ö8,000
6,684,661
2,853
1,749
405
7
94
5,49*7
26,820,935
43,336
298,139
975 ‘
476,610
$66,175,857
PART 2
STATISTICAL SUMMARY
Other Operations of the Securities Division
During the year 656 certificates of capital stock of the Federal
Reserve Bank of New York were issued and 561 certificates were canceled.
New Issues Function
On weekly offerings of Treasury bills 4,385 tenders were received
during the year and allotted in accordance with instructions received from the
Treasury Department, as compared with 5,986 last year.
Cash Subscriptions to Public Offerings
During the year 242,735 cash subscriptions for market issues of
United States Government securities totaling $15,680,895,500 were processed
in accordance with Treasury instructions.
PART 2
STATISTICAL SUMMARY
PERSONNEL
Officers in charge:
Edward 0. Douglas, Vice President
TTilliam A. Heinl, Manager, Personnel Department
PERSONNEL DEPARTMENT
Confidential loans to employees
From Educational Loan Fund
(a) Number of borrowers during year
(b) Aggregate amount of loans made
(c) Number of borrowers since 1924
(d) Aggregate amount of loans since 1924
Number of employees receiving educational
refunds during year
Aggregate amount of educational refunds made
1944
1945
96
4,586
2,901
128,480
92
3,969
2,993
132,450
151
3,605
175
4,697
Personnel Division
Confidential loans to employees
From Officers Loan Fund (including Buffalo Branch)
(a) Number of borrowers during year
(b) Aggregate amount of loans made during year
$
(c) Number of borrowers at end of year
(d) Aggregate amount outstanding at end of year
Applicants interviewed
Applicants hired
169
25,707
134
14,161
$
138
24,558
121
16,394
4,736
1,379
6,002
1,043
4,409
1,426
61
1,195
133
30
7
3
4,317
1,114
29
926
120
27
8
4
15
$8,111,112
1,816
None
$8,382,419
1,942
890,633
530,101
502,336
22,440
35,693
91,355
870
7,404
None
18,669
1,057,997
548,827
509,501
26,527
36,537
98,550
796
9,250
215
18,716
$ 2 ,0 9 9 ,5 0 1
$ 2 ,3 0 6 ,9 1 6
Personnel Records Division
(Officers and Buffalo Branch not included)
Total employees at year end
Total employees leaving service
Entering military service
Resigned
Dismissed
Retired
Died
Employees appointed officers
employees retained in service after attaining
retirement age (65)
Rate at year end of basic annual salary liability
Rate at year end of average basic annual salary
Deductions from salaries
1. Federal withholding tax
2. Purchases of savings bonds
3. Retirement System contributions
4. Associated Hospital insurance
5. Group insurance premiums
6. Systematic savings
7* Salary savings insurance premiums
8, New York Income Tax on non-residents
9. Garnishee orders
10. Repayments to Officers Loan Fund
T o t a l d e d u c tio n s
PART 2
STATISTICAL SUKKARY
PERSONNEL DEPARTMENT (C on tin u ed )
Medical Division
Professional
Personnel
Medical Director
Other Doctors
Nurses
Dentist
Hygienist
Technicians
As of
Dec. 31,
1944
I
4
6
1
1
2
As of
Dec. 31,
1945
I
5
7
1
1
2
-X X -X *
2 - 2 5
*
-X-
Total No. of
Examinations
of Applicants
for Employment
T 7U
-
1 ,$ £ l
1945 - 1,621
Total No. of
Contacts with
Employees and
Applicants
1944 - 43,147
1945 - 40,327
PART 2
STATISTICAL SUMMARY
BUFFALO BRANCH
Officers in charge:
Insley B.
Halsey W.
George J.
M. Monroe
Smith, Managing Director
Snow, Cashier
Doll, Assistant Cashier
Myers, Assistant Cashier
Accounting Division
Member bank reserve accounts
Nonmember clearing accounts
Number of entries posted
74
7
199,047
*14
8
216,875
52,747
$105,764,185
56,238
$107*759*305
57,388
$107,131,091
59i 466
$112,985j493
6,341
$ 22,955*931
6,344
$ 21,687,488
1,749
$ 22,300,396
1,947
$ 18,071,673
15,562
14,983
$126,391,000
111,060,000
34,156,650
19,116,350
$2<3Ö,-?24,ÖÖÖ
$111,998,000
104,649,000
40,560,360
27,154,640
$2537162,DOS
19,887
19,158
$128,348,000
47,764,000
99,470,000
15,471,000
*291,653,000
$142,192,500
55,140,300
81,467,000
7,795,000
{586; & 4 #"®0
Withheld Taxes
Number of receipts received from
depositary banks
Amount
Number of receipts received from
Collectors of Internal Revenue
Amount
Number transferred to other Federal
Reserve districts
Amount
Number transferred from other
Federal Reserve districts
Amount
Cash Division
Paying Section
Number of transactions
Cash disbursed to;
Banks in Buffalo
Banks outside Buffalo
Treasurer of the United States
All Others
Total Cash Disbursed
Receiving Section
Number of transactions
Cash received from:
Banks in Buffalo
Banks outside Buffalo
Treasurer of the United States
All Other Sources
Total Cash Received
2 - 2 6
PART 2
Shipping Section
STATISTICAL SUMMARY
1944______
Packages
Amount
Shipments of:
Mutilated currency
Fit Federal Reserve Notes
to other F. R. Banks
Currency to banks
Mutilated coin
Coin to banks
Securities to Treasury,
head office, and others
1945
Packages
Amount
7,444
$ 34,142,630
8,321
$ 40,550,800
489
8,401
23
3,808
18,358,000
81,748,092
14,020
1,490,206
570
6,920
15
3,465
26,485,000
65,241,586
11,210
1,416,218
7,810
254,242,787
7,550
304,344,991
Currency and Coin Sorting Sectioni
1944
Pieces Amount
(000i
emitted)
36,189 $184,086
3,446
31,722
5,988
79,515
34,999
3,968
Bills counted
Bills rehandled
Verification count
Coin
1945
Pieces Amount
(000Cmitted)
37,652 $208,776
4,336
39,885
6,885
4,291
35,065
3,709
Wire Transfer Section
1945
1944
Wire transfers
Mail transfers
Number
7,976
739
Check Division
Amount
&L,6$&, 305,751
2,668,016
Number
¿,222
431
1945
Amount
Pieces
(000 Omitted)
1944
Amount
Pieces
(000 Omitted)
Clearings through Buffalo
Clearing House
Other Buffalo checks
Checks on us
Country checks
Return items
Government checks payable
in Washington, D# C.
Punch card checks payable
through F. R. Banks
4,622 $2,570,959
66,834
445
5
181,473
9,694
3,026,373
7,480
47
Daily average number of
checks handled
Number of cash letters sent
Number of ration checks handled
Amount
$1,516,837,824
1,781,530
4,780 $2,519,388
71,542
464
179,262
5
10,168
2,908,199
7,482
51
990
1,499,845
706
1,026,558
1,026
65,577
541
1,523
17/577
89,439
16,801,870
55,726
186,812
781,904
58,803
180,586
763,374
Collection Division
Country items (ex
cept coupons)
City items (except
coupons)
Coupons
Coupon transactions
Registered articles
received
Direct
sendings
1945
1944
Number
16,025
5,806
50,057
6,548
103,283
2,484
Amount
(000 emitted)
$21,053
Number
18,043
2,709
6,745
51,848
6,451
2,664
15,998
7,963
2,228
Amount
(OUO Omitted)
$33,559
27,304
2,839
3,079
PART 2
STATISTICAL SUMMARY
Credit and Discount Division
1944
Number
83*
37
Advances made to member banks
Prepayments by member banks
1945
Amount
552,555,UOO
37,690,000
Number
165*-*
63
Amount
^210,720,000
80,290,000
* Fifteen banks
** Twenty-five banks
Regulation 17
Office Service Division
Personnel Section
4,629
4,498
185
267
350
46,733
35,866
24,302
18,125
524
744
382
390
1944
Number
Amount
Payroll operations:
Basic salary payments
Supplemental compensation
payments
Overtime payments
Breakfast allowance payments
Supper allowance payments
1945
1944
--- 45
175
415
Number of inquiries received by letter
Number of oral inquiries received
Number of investigations made
Transactions examined:
Instalment loans
Instalment sales
Charge sales
Number of violations disclosed:
Wilful
Inadvertent
$295,312
29,049
72,072
1,307
953
1945
Number
Amount
5,037
3,729
Claims for reimbursement of
Fiscal Agency expenses
170
Applicants interviewed
631
382
Applicants employed
103
81
7
58
15
m
3
51
Employees resigned:
Military service
Voluntary
Requested
December 31:
Number of employees
Annual salary liability
175,185
39,594
53,107
1,395
427
189,510
8
52
202
221
310,124
2 - 2 8
99
$320,059
347,914
PART 2
STATISTICAL SUMMARY
1945
1944
Deductions from salaries of employees:
Percentage of total salary paid
Federal Withholding Tax
Purchases of Savings Bonds
Retirement System contributions
Group insurance premiums
Systematic savings
Hospital Service Corporation of Western
New York
United War and Community Fund
Repayments to Officers Loan Fund
26.23*
$ 46,758.29
30,388.05
20,554.10
1,237.80
7,443.00
27.54$
$28, 304*00
26, 085.00
19,145.00
752.00
5.517.00
.
1 329.00
178.00
17.00
$81,327.00
1,422.31
145.20
331.25
^ 1 0 8 ,2 8 0 .0 0
R.F.C. Custody Division
Number of checks issued
Amount
1944
10,794
$16,788,088.84
1945
3,002
$5,826,050.00
1944
1,542, Û2Ï
$51,584,650
288,727
1945
3,049,997
$108,399,725
10,728
Savings Bond Redemotion Division
Number of pieces redeemed
Maturity value
Number of checks issued
Securities Division
1945
1944
Amount
Pieces
Redemptions:
Tax Notes
Gov*t Securities
Other Gov’t Guaranteed
Issues
Gov't Coupons
Coupons of Govrt
Guaranteed issues
Sales:
U.S. Savings Bonds
U.S. Notes, Tax Series
Pieces
Amount
13,905
2,247
$113,530,000.00
8,127,225.00
12,023
2,247
$92,707,900.00
17,583,900.00
1,442
41,537
1,128,200.00
1,295,862.61
1,403
52,763
1,616,650.00
1,877,031.89
4,717
77,687.52
2,725
44,147.09
30,927
9,938
27.526.300.00
87.509.200.00
33,058
7,090
34,111,900.00
57 ,572,500.00
1944
Accounts Par Value
■^Security Custody:
Safekeeping for member banks
Pledged collateral of member
banks
Pledged securities for account
of Treasury Dept, and Agencies
Number of custody transactions
Coupons clipped
1945
Accounts
Par Value
6258,655
$154,430
25,000
25,000
397,530
401,690
114
572
225
393
1,379
1,446
-x-Securities held on December 31
Number of Cashier»s checks issued
2 - 2 9
PART 2
STATISTICAL StMiARY
Bank R e la t io n s
1944
Visits made to:
Member banks
Nonmember banks
Corporations in connection vrith
issuance of U.S. Savings Bonds
Meetings attended by officers and
staff members
2 - 3 0
103
75
14
32
1945
73
36
1
44
FEDERAL RESERVE BANK OF NE^ YORK
President’s Report to Directors for 1945
APPENDIX
GENERAL INFORMATION REGARDING THE FUNCTIONS
OF VARIOUS DEPARTMENTS OF THE BANK
Page
Accounting, Planning and Service ...................... ♦
AP - 2
Bank Supervision and Bank Relations.................. «
4
Cash and Collections . . ................ . .......... •
5
Foreign
.............................
8
Government Bond and Safekeeping........... ............
10
Loans, Credits and R. F. C. Custody
12
.........
................. . .
Open Market Operations, Treasury Issues,
and Margin Regulations ...............................
14
Personnel...........................................
16
Buffalo Branch .......................................
17
(March 1946)
AP - 1
APPENDIX
ACCOUNTING, PLANNING AND SERVICE
ACCOUNTING DEPARTMENT
Accounting Division; Disbursing Division;
Tabulating Division; Withheld Taxes Division
The Accounting Division maintains the General Ledger of the bank,
member bank reserve accounts, nonmember bank clearing accounts, settlement
accounts with other Federal Reserve Banks, the general account of the Treasurer
of the United States, and other deposit accounts with the bank, except foreign
accounts. It receives remittances in payment of cash letters sent by the bank
to other banks in the Second Federal Reserve District and handles certain ad
justments relating to these cash letters, such as errors in listing or lost
checks. It also acts as the custodian of bank records, other than certain
correspondence, and arranges for the periodic destruction of temporary records.
The Disbursing Division makes payment of all salary and related
items, together with all other expenses incurred by the bank. It also pre
pares vouchers for reimbursement from the United States Government and agencies
thereof for expenses incurred by the bank in fiscal agency operations. In
addition, the division prepares certain reports relating to the bank’s expenses.
The Tabulating Division prepares certain records on International
Business Machine equipment for various departments of the bank, the principal
such records being those relating to: check collections, departmental expense
distribution, securities held in safekeeping accounts, coupon cutting requisi
tions and coupon credits, payrolls, inventory of furniture and equipment, and
sales of Series E Savings Bonds in the Second Federal Reserve District.
The Withheld Taxes Division handles the fiscal agency work of the
bank in connection with the 'collection at the source of Federal income taxes
on salaries. The division’s functions are two-fold:
1.
It receives remittances from qualified depositary banks of
funds representing withheld taxes paid to them by employers,
it credits such funds to the General Account of the Treasurer
of the United States, and it maintains accounting records for
each authorized depositary bank.
2.
It receives from Collectors of Internal Revenue the original
depositary receipts issued by authorized depositaries to
employers, and reconciles these with the accounts it maintains
for the authorized depositaries.
PLANNING DEPARTMENT
Planning Division; Purchasing Division
In January 1945 the Planning Department was established and the
Planning Division and the Purchasing Division of the Accounting Department
were transferred thereto.
AP - 2
APPENDIX
The Planning Division supervises methods and practices throughout
the bank, and as a pari of that program examines all purchase requisitions
for equipment and supplies, passes upon the specifications of all material
ordered, and standardizes so far as practicable all printed forms. From time
to time it conducts surveys of the various departments to analyze their prob
lems and to suggest improved operating methods. It makes studies of the
controllable expenses of such of the operating departments as are susceptible
to such studies, and analyzes the causes of substantial deviations from the
annual estimate of expenses. It prepares floor plans and equipment layouts
whenever new units are set up or old units are moved. It also supervises
the servicing and repairing of any mechanical office equipment used by the
bank which is not serviced by the manufacturers.
The Purchasing Division buys all supplies for the bank and for the
maintenance of its buildings. It stores the supplies, disburses them on
requisition and maintains a perpetual inventory of all stock items.
SERVICE DEPARTMENT
Food Supply Division; Post Office Division; Protection
Division; Telephone Section; Vault Division
The Food Supply Division selects food and prepares and serves
luncheon for the officers and employees of the bank at prices substantially
below cost. In addition to the mid-day luncheon, the Cafeteria also serves
the night force from 3 to 6 a.m., and special dinners are occasionally pre
pared.
The Post Office Division operates a postal station which serves
only this bank" It affords both ordinary and registered mail facilities.
The Protection Division provides protection for the main building
and the building at $5 Ilaiden Lane. Protection is also provided for all
messengers or clerks transporting valuables through the streets and for the
registered mail trucks that operate between the bank and the General Post
Office. The division operates the bank's automobiles and the employees1
check room. It also operates the telephone switchboard in the Central Watch
Room from midnight to 7 a.m. Monday through Friday, and from 9 p.m. Saturday
to 7 a.m. Monday. In addition, it operates the emergency equipment in case
of fire. The panel board controlling the alarms on the vaults is under the
jurisdiction of the Protection Division. This division also arranges for the
purchase of rail and air transportation, and the making of hotel reservations.
The Telephone Section handles all incoming calls, all outgoing toll
calls and local calls for officers and employees who do not have dial tele
phones. It maintains two direct lines to the Treasury Department and two
lines to the offices of the Board of Governors, one of which is direct and
the other through the Federal Reserve Bank of Philadelphia. The switchboard
is operated from 7 a.m. to midnight I'onday through Friday and from 7 a.m. to
9 p.m. Saturday. At other hours service is available through a switchboard
in the Central Watch Room which is operated by the Protection Division.
AP - 3
APPENDIX
The Vault Division sees that only authorized persons are admitted
to the vault space and holds partial control on access to the bank's currency
and securities.
BUILDING OPERATING
Building Maintenance Division; Power Plant Division;
Building Service Division
This unit operates and maintains the main bank building, the annex
building at 95 Maiden Lane and also the building ovmed by the bank at 10 Gold
Street.
The Building Maintenance Division maintains the three buildings,
maintains and repairs all machinery'thereof except business machines and ma
chinery in the power plant, rearranges departmental and tenant's space and
partitions, repairs bank equipment and builds certain new equipment.
The Power Plant Division operates and maintains the power plant, the
air conditioning system and the heating systems of the three buildings and
maintains and repairs all machinery of these units# The power plant generates
all electricity for light and power for the main bank building. Between
January 30, 1943 and September 22, 1945 all steam for power and heating was
purchased from the New York Steam Corporation due to the shortage of fuel oil.
On September 22, 1945 the Power Plant was reconverted to fuel oil and since
that time all steam required has been generated in our own boilers.
The Building Service Division operates the elevators, cleans the
buildings, examines and bales waste paper, moves furniture and equipment and
furnishes utility porter service to various departments that require assistance
in the performance of laborious work.
* * -x- -* -x- *
BANK SUPERVISION AND BANK RELATIONS
BANK EXAMINATIONS DEPARTMENT
Examining Division; Analysis Division;
Application & Records Division
The Examining Division handles the examination of State member banks,
banks applying for membership, and affiliates and holding company affiliates.
The trust examiner handles the examinations of trust departments of State
member banks and of bonks applying for membership.
AP - 4
APPENDIX
The Analysis Division handles the analysis of examination reports
of member banks and of banks applying for membership, the preparation of corre
spondence, memoranda, and studies relating to member banks, the relations of
the bank with the Federal Deposit Insurance Corporation, the Reconstruction
Finance Corporation and State banking departments with respect to bank super
visory matters, applications of member banks for permission to reduce their
capital* reports of possible violations of certain criminal statutes, adminis
tration of Regulations L, 0 and R of the Board of Governors of the Federal
Reserve System, and recommendations on war loan depositaries#
The Application & Records Division administers Regulations F, H, I,
K, M, P, and Q of the feoard of Governors; handles the inspection and recording
of reports of condition and earnings of member banks; checks work copies of
examiners* reports, types such reports and does the general typing and steno
graphic work of the department; and maintains the departmental files.
BANK RELATIONS DEPARTIRENT
The function of this department is to visit the banks of the Second
Federal Reserve District, to assist in keeping them informed of the operations
of the Federal Reserve Bank and of the Federal Reserve System, to give helpful
suggestions to the officers of the banks in matters tending to raise the
standard of bank management and, generally, to promote harmonious and satis
factory relations between the Reserve Bank and its members. It is also the
function of the department to promote better understanding with the nonmember
banks, to give them assistance with their current problems where this is pos
sible and to assist them in becoming members of the Federal Reserve System
when desirable.
-x-
-x- -x- -x-
CASH AND COLLECTIONS
CASH DEPARTMENT
Receiving Division; Sorting and Counting Division;
Paying Division; Coin and Bullion Division
The principal operations of this department relate to the receipt
and distribution of coin and currency.
The Receiving Division receives shipments of new paper currency from
the Treasury and deposits of used currency from member banks and other depositors.
This division also receives deposits of Government checks frcm officers of the
Government for immediate credit to the Treasurer's General Account, and a large
volume of Government checks and checks drawn on this bank which are presented
by banks over the counter for deposit, and immediate credit, in their accounts.
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APPENDIX
The Sorting and Counting Division verifies used paper currencydeposited by member banks, and sorts out: (1) Federal Reserve notes issued
through other Federal Reserve Banks (these are returned to those banks, except
that notes issued through the Federal Reserve Banks of Boston and Philadelphia
are shipped direct to their member banks) and (2) currency which is unfit for
further circulation (which is sent to the Treasury for destruction).
The Paying Division handles all currency shipments and counter pay
ments, including those Government checks and coupons which are cashed over the
counter, and arranges for the shipment of accumulations of fit Federal Reserve
notes issued through the Federal Reserve Banks of Boston and Philadelphia to
member banks in their respective districts. Federal Reserve notes are requisi
tioned from, and retired with the Federal Reserve Agent in accordance with in
structions given by this division to the Cash Custody Department, All currency
handled by this division is obtained from either the Cash Custody Department
or the Sorting and Counting Division.
Since May, 1942, the receipt and delivery of United States currency
and coin seized by the United States Customs and delivered to the bank under
General Ruling No, 5, issued under Executive Order No. 8389 (Foreign Funds
Control) have been handled in the Cash Department, The Sorting and Counting
Division receives such currency and coin and holds it for three months or until
it is released, whichever is shorter. If such currency has not been released
within three months it is lodged with the Cash Custody Department, The Paying
Division makes all releases in accordance with instructions from the Foreign
Funds Control Department,
The Coin and Bullion Division receives, handles and disburses all
coin received by the bank,
CASH CUSTODY DEPARTMENT
Cash Custody Division
This department maintains the custody in the vaults of all currency,
coin and bullion held by the bank, and receptacles containing other valuables,
making delivery thereof to various departments of the bank on requisition. In
accordance with the Vault Rules and Regulations of the bank, unissued Federal
Reserve notss, and gold certificates pledged as part of the collateral to secure
Federal Reserve notes, are held under joint control with the Assistant and
alternate Assistant Federal Reserve Agents; and the bank's coin and currency,
and bullion earmarked for foreign central banks and governments, are held under
joint control with the Vault Division of the Service Department.
The Treasury Currency Reports Section of the division handles reports
of unusual currency transactions submitted to this bank under a directive of
the Treasury Department. Reports are received monthly from banks and other
financial institutions and are tabulated for statistical purposes and turned
over to a representative of the Treasury.Department,
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APPENDIX
CHECK DEPARTMENT
Clearings Division; Transit Division;
City Collection and Return Items Division
This department handles all checks and other cash items (other than
Government checks) received for collection from member and nonmember clearing
banks in this district, from other Federal Reserve Banks and direct sending
member banks of other districts, and from or for the account of other deposi
tors, such as the Treasurer of the United States, various other Government
agencies and foreign central banks and governments.
The Clearings Division handles all checks and other cash items dravm
on banks in The New York Clearing House Association, the Northern New Jersey
Clearing House Association and on those banks in Greater New York which partici
pate in the Manhattan, Bronx and Brooklyn collection arrangement. It also
handles cash items drawn on members of the City Collection Department of The
New York Clearing House Association.
The Transit Division handles checks and other cash items dravm on the
other banks in the Second Federal Reserve District and on banks located in other
Federal Reserve districts. Checks drawn on such banks located in the Second
Federal Reserve District are processed on I.B.M. punch card equipment.
The City Collection and Return Items Division handles all cash items
which are returned unpaid for any reason, makes hand presentation of noncash
items payable at street addresses in New York City, below 59th Street, and
provides messenger service for other departments of the bank.
COLLECTION DEPARTMENT
Country Collection Division; Coupon Collection Divisicn;
Wire Transfer Division
~~~
'
The Country Collection Division handles certain noncash items
(maturing notes^ acceptances, drafts with or without documents attached and
other evidences of indebtedness and orders to pay, except checks handled as
cash items, maturing bonds and coupons and drafts with securities attached)
which are received by the bank for collection. Items requiring hand presenta
tion in New York City are forwarded to the City Collection and Return Items
Division of the Check Department for presentation.
The Coupon Collection Division handles the work incident to the pay
ment by the bank, as fiscal agent o7* thé United States, of coupons detached
from securities issued or guaranteed by the United States Government. It also
handles maturing bonds and coupons (other than Governmant bonds), drafts with
securities attached payable outside New York City and certain municipal warrants,
received by the bank for collection.
The Wire Transfer Division handles telegraphic transfers of funds
between the Federal Reserve Bank of New York and oth^r Federal Reserve Banks
made for account of the Treasurer of the United States or at the request of,
or for credit to, member banks and nonmember clearing banks located in the
Second Federal Reserve District.
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APPENDIX
GOVERNMENT CHECK DEPARTMENT
Treasury ¿heck Division; Card Check Division
The Treasury Check Division handles all paper checks drawn on the
Treasurer of the United States payable in Washington which are received by the
bank for collection from member and nonmember clearing banks or other sources
in this district. The Ration Check Section* of this division handles for
clearance ration checks drawn on "Ration Bank Accounts” maintained by member
and nonmember banks. These checks are received by us and forwarded to the
drawee banks in the same way as dollar checks.
The Card Check Division handles the punch-card checks, most of which
are drawn on the Treasurer of the United States, "through” a designated Federal
Reserve Bank, Whereas all traditional style (so-called "paper”) checks drawn
on the Treasurer are sent to Washington for examination and payment, most of
the punch-card checks are examined and paid in the Federal Reserve Bank through
which made payable. Punch-card checks drawn "through” other Federal Reserve
Banks are forwarded to such banks for examination and payment.
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FOREIGN
FOREIGN DEPARTMENT
Foreign Opérations Division; Reports and Analysis Division;
Cable Division
The Foreign Accounts Section of the Foreign Operations Division
handles the dollar, earmarked gold, and securities custody accounts maintained
by this bank for foreign central banks and governments under authority of
section 14(e) of the Federal Reserve Act, and also operates the Federal Reserve
System accounts maintained abroad. Transactions in such foreign accounts on
the books of the bank include payments and receipts, collections, gold earmarks
and releases, and purchases and sales of securities. All Federal Reserve Banks
participate in all such accounts and are kept currently informed concerning
operations therein.
The Foreign Exchange Section of the Foreign Operations Division
handles foreign exchange transactions for foreign correspondents and out-oftown member banks; also certain fiscal agency transactions. The fiscal agency
functions consist of: purchases and sales of gold and foreign exchange for
the Stabilization Fund, operation of stabilization agreements (entered into
between the Treasury and various foreign governments and central banks),
maintenance of certain dollar and earmarked gold accounts (some of which relate
to such stabilization and other similar agreements), purchases cf silver under
the Silver Purchase Act, purchases and sales of foreign exchange, and remits
tances of funds abroad for governmental purposes.
*
This section was transferred to the Treasury Check Division of the
Government Check Department on February 5, 1945«
AP -
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APPENDIX
The Reports and Analysis Division compiles and analyzes information
on international movements of capital and foreign exchange, obtained from
reports collected by the division from banks, brokers, and others, pursuant to
the Executive Order of January 15, 193A- and Treasury regulations. The division
also makes studies of the effect of foreign operations on this market and of
developments in the United States balance of international payments, including
lend-lease and similar fields of international finance. Rates of foreign ex
change are certified by this division to the Secretary of the Treasury, pur
suant to Section 522 of the Tariff Act of 1930. The translation of foreign
language letters, documents, and reports dealing with the foreign business of
this bank is also handled here.
The Cable Division handles all incoming and outgoing cablegrams and
radiograms, most of which are transmitted in our private code, and prepares
code books and secret telegraphic test keys for use between ourselves and our
foreign correspondents.
FOREIGN FUNDS CONTROL DEPARTMENT
Licensing ftivision; Application and Records Division
This department performs the duties delegated to this b a n K , as fiscal
agent of the United States, by the Treasury Department in connection with the
administration of Foreign Funds Control. The principal duties are as follows:
1.
Assists the Treasury in determining policy matters involving
the freezing control, and in the preparation of public docu
ments in connection therewith.
2.
Maintains public relations with banks and persons for the
purpose of advising them with respect to Treasury policy
and to assist them in connection with specific problems.
3.
Receives applications for licenses relating to transactions
affected by the freezing control; issues licenses or makes
other disposition of the applications.
4-. Receives and examines reports covering transactions effected
under license.
5.
Receives and forwards to the Treasury census reports of
property in the United States owned by foreigners and of
Amorican-omed property abroad.
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APPENDIX
6.
Cooperates with various agencies of the Government, such
as, Customs, Federal Bureau of Investigation, and the
Alien Property Custodian with respect to matters of mutual
interest involving persons or activities under investiga
tion.
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GOVERNMENT BOND AND SAFEKEEPING
GOVERNMENT BOND DEPARTMENT
Savings Bond Issue Division; Treasury Bond Division
The Government Bond Department conducts the operations of the bank,
as fiscal agent of the United States, in connection with the issuance, distribu
tion, exchange and redemption of securities of the United States Government
and certain of its agencies, except for redemptions of United States Savings
Bonds which are handled by the Savings Bond Redemption Department. The depart
ment maintains detailed records with respect to public debt operations in the
Second Federal Reserve District and submits periodic reports to the Treasury
Department concerning such operations. The department also maintains records
of the balances held in war loan deposit accounts by banking institutions
qualified as special depositaries of public funds and controls the securities
pledged as collateral for such balances.
All organizations acting as issuing agents for sale of Series E
Savings Bonds in the Second Federal Reserve District, except post offices, are
qualified by the Government Bond Department which supplies them with bond stock
to be issued, receives their remittances of the proceeds of bonds sold and
credits such amounts to the account of the Treasurer of the United States.
SAVINGS BOND REDEMPTION DEPARTMENT
Redemption Division
This division handles the work of the bank, as fiscal agent of the
United States, in the following operations:
1.
Redemption of United States Savings Bonds of Series A-E,
paid by banking institutions.
2.
Payment and redemption of United States Savings Bonds of
Series A-E submitted directly to this bank by the public.
United States Savings Bonds of Series F and G are received
and transmitted to the Division of Loans and Currency of
the Treasury Department in Chicago.
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APPENDIX
3.
Maintenance of files for the department and for all general
correspondence pertaining to United States Savings Bonds,
including applications for issue#
SAFEKEEPING DEPARTMENT
Safekeeping Division
This department handles the records and maintains control of securities
held by the bank in safekeeping for account of member banks, the Treasury Depart
ment and various Government agencies, and foreign banks and governments, as v;ell
as the safekeeping of securities received as collateral in certain other depart
ments and savings bonds held in safekeeping by the bank, as fiscal agent of the
United States, for account of the registered owners thereof# The Security
Custody Department maintains the actual custody in the vaults of all such
securities.
This department also renders many services to the owners of securities
held in safekeeping, including the acceptance and delivery of securities
against purchases or sales, the presentation of bonds or coupons for collection
at maturity, and notification to owners that their bonds have been called for
redemption or that other events have occurred affecting their securities in
safekeeping.
This department delivers Government securities to banks, brokers or
individuals on original issue, either over our counter, by registered mail, or
by wire transfer to other sections of the country; and also handles the delivery
of Government securities in New York City upon instructions received from the
other Federal Reserve Banks and branches.
SECURITY CUSTODY DEPART?.:ENT
Security Custody Division
This department handles the actual custody in the vault of all
securities held by the bank. These securities fall into the following classi
fications;
1.
2.
3.
securities held for the System Open Market Account and
securities held in safekeeping, including
(a) Treasury bills held by this bank in "Option Account"
(b) securities of member banks held for safekeeping,
pledged as collateral in War Loan Deposit Account,
or pledged to secure loans to member banks
(c) securities held in various accounts of the Secretary
of the Treasury, and
(d) securities held for foreign correspondents and others,
including Savings Bonds owned by individuals
securities held for account of the Reconstruction Finance
Corporation
unissued stock of United States Government securities, and
AP - 11
APPENDIX
4.
coupons clipped
(a) from unissued stock and held for destruction, arid
(b) from securities owned by member banks or by the
System Open Market Account, and to be delivered
out for collection at maturity.
Securities other than unissued stock are received with vault receipt
attached from the department of the bank having control thereof. The Sjcurity
Custody Department validates each receipt, files the securities, maintains
control of each account for which securities are held, cuts coupons as they
mature in accordance with appropriate instructions, and releases the securities
to the appropriate department of the bank upon receipt of a withdrawal requisi
tion and return of the vault receipt.
Stocks of unissued Government obligations are requisitioned by the
department as needed by the bank for purpose of sale or exchange; and the
department dates, and otherwise completes, stocks of Traasury bills for the
weekly issues thereof and stocks of Federal Intermediate Credit Bank and Federal
Home Loan Bank obligations for the monthly issues thereof.
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LOANS, CREDITS AND R. F. C. CUSTODY
CR5DIT DEPARTMENT
Credit, Division
The work of this division consists of the following activities:
1.
The procurement and analysis of credit and financial
information necesiary to establish the acceptability
of commercial, agricultural and industrial paper of
fered by member banks for discount or as collateral
to advances pursuant to Regulation A,
2.
The processing of applications for industrial loans
pursuant to Regulation S and Section 13b of the Federal
Reserve Act, including the analysis of financial informa
tion submitted, the investigation of the applicant, and
surveys, when appropriate, of applicant's production
and financial management. Also all necessary servicing
ODerations in connection with loans or commitments made.
3.
Handling the work of the bank, as fiscal agent of the
United States, pursuant to Regulation V relating to
guaranteed war production and termination loans, in
cluding the receipt and processing of applications for
guarantees, the issuance upon proper authority of such
guarantees, and the servicing of the resultant guaranteed
loans and credits.
AP - 12
APPENDIX
4.
The administration of Regulation IT relating to the
control of consumer credit, including the distribution
of suitable information, the receipt of registration
statements from, and the issuance of registration
certificates to, individuals subject to the regulation,
enforcement activities in accordance with the general
policies of the Board of Governors, including action
in the case of v/illful violators, surveying of public
opinion, and the development and analysis of various
statistical data pertaining to consumer credit.
5.
The procurement and analysis of credit and financial
information upon the request of the officers of other
departments of the bank and other Federal Reserve Banks,
certain departments and agencies of the United States
Government, and foreign central, banks.
DISCOUNT DEPARTMENT
Discount Division
This division processes all applications of member banks for discounts
and advances pursuant to Regulation A, and determines the eligibility of all
commercial, agricultural and industrial paper offered with such applications.
It also handles the pledging with the Federal Reserve Agent of certain eligible
collateral to secure Federal Reserve Notes. In connection with Regulation V,
the department also maintains complete ledger records and other data respecting
V-loan and T-loan balances, and it bills and collects guarantee and commit
ment fees on behalf of the respective guarantors. It also holds and services
collateral against guaranteed loans which have been purchased by us for account
of the guarantors.
R. F. C. CUSTCDY DEPARTMENT
R. F. C. Custody Division
The operations of the bank as fiscal agent, custodian and depositary
for the Reconstruction Finance Corporation and the Commodity Credit Corporation
are effected by the R. F. C. Custody Department. Work for the Reconstruction
Finance Corporation and its various subsidiaries involves:
1.
the receipt and examination of corporate resolutions
and letters of authorization prescribing the conditions
precedent to the disbursement by, and the receipt of,
funds;
2.
the receipt, examination and safekeeping of promissory
notes and collateral of borrowers in connection with
loans;
AP - 13
APPENDIX
3.
the receipt, examination and safekeeping of deeds,
leases, invoices, bills of lading, warehouse receipts,
and other papers and documents evidencing title to
defense plants, the machinery and equipment therein,
various metals, rubber and other strategic materials;
4.
the disbursement, by checks drawn on the Treasurer of
the United States, of the amounts of loans and partici
pations therein, subsidy payments and payment for stra
tegic materials and other purposes;
5.
the maintenance of complete records of each transaction,
including detailed inventory records reflecting the
description and cost of machinery and equipment in
stalled in defense plants, of various metals, rubber
and other strategic materials and the preparation of
appropriate reports;
6.
the release of title documents necessary to effect
sales of real property, machinery and equipment and
strategic materials; and
7.
the application of funds received in connection with
payments of principal and interest on loans, sales
of strategic materials, surplus war property and
other purposes.
The operations of the bank as fiscal agent, custodian and depositary
for the Commodity Credit Corporation involve:
1.
the disbursement, by checks drawn on the Treasurer
of the United States, of the amounts of subsidy pay
ments and payments for various commodities;
2.
the application of funds received in connection with
sales of such commodities; and,
3.
the maintenance of records of each transaction and
the preparation of appropriate reports.
OPEN MARKET OPERATIONS, TREASURY ISSUES, AND MARGIN REGULATIONS
SECURITIES DEPARTMENT
Securities Division; Bill Division
The following operations of the bank are handled through the
Securities Division: (1) purchases and sales of Government securities for the
System Open Market Account and the allocation of such securities among the
twelve Federal Reserve Banks, in accordance with general directions of the
AP - 14
APPENDIX
Federal Open Market Committee, (2) pledges of participations in direct obliga
tions of the United States held in the System Open Market Account to secure
Federal Reserve notes of each of the Federal Reserve Banks on instructions of
the Reserve Bank and its Agent, and also pledges of such obligations held in
this bank's own account to secure Federal Reserve notes of this bcnk on request
of this bank, (3) purchases and sales of securities (other than corporate stocks)
in the open market for account of member banks, the Treasury Department and
foreign correspondents, (4) purchases and sales of Treasury bills at the Federal
Reserve System's established buying rate of 3/8 per cent, (5) compilation of
statistical information and other data to aid in the planning of new Treasury
financing and the meeting of maturities, (6) making studies, and keeping thé
Treasury and the Board of Governors currently informed of market conditions in
Government securities, and (7) preparation of reports covering market conditions
and operations# This division also handles the operations of the bank, as fiscal
agent of the United States, in receiving cash subscriptions for new issues of
Government securities issued subject to allotment, making the allotments thereon,
and in receiving tenders on both competitive and fixed-price bases for the
weekly issues of Treasury bills and making allotments thereon.
The Securities Division is also charged with responsibility for the
registration, issuance and cancelation of the capital stock of the bank and the
payment of dividends on outstanding stock held by member banks.
The Bill Division buys and sells bankers acceptances for account of
the System Open Market Account when directed by the Federal Open Market Committee,
and also for account of member banks and foreign correspondents. Upon request,
it confers with banks regarding the eligibility of acceptances. It assembles
statistical data from accepting institutions regarding bankers' acceptances for
publication and distribution to such institutions and to the market. It also
receives weekly reports from dealers and compiles statistics therefrom for the
use of this bank and the Federal Open Market Committee.
SECURITY LOANS DEPARTMENT
This department administers Regulations T and U of the Board of
Governors of the Federal Reserve System governing, respectively, the extension
and maintenance of credit by brokers, dealers, and members of national securi
ties exchanges, and loans by banks for the purpose of purchasing or carrying
stocks registered on a national securities exchange.
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APPENDIX
PERSONNEL
PERSONNEL DEPARTMENT
Personnel Division; Personnel Records Division;
Medical Division; Stenographic Division; Corre
spondence Piles Division
The Personnel Division makes studies of policies affecting personnel,
selects new employees, controls assignments, administers certain bank rules,
controls insurance, and supervises educational and training programs.
The Personnel Records Division, as reorganized in Llay 1945, prepares
payrolls, maintains employees1* records, administers the personnel policies to
conform with government legislation, and conducts research studies of current
personnel trends in this area as well as studies of matters of general personnel
interest.
The functions of the Medical Division under the Medical Director
include (1) pre-employment physical examination of all applicants, (2) annual
physical reexamination of all employees in so far as possible, (3) health advisory
service as related to the staff as a whole as well as to individual employees,
(4) minor emergency surgery and surgical dressings, (5) issuing excuses from
work because of illness or accident, (6) issuing and renewing medical leaves of
absence, and (7) supervising the sanitation of the building.
The Stenographic Division performs duplicating and photostating work
for the bank, maintains mailing list addressograph plates, and furnishes steno
graphic, typing, and addressing service where needed.
The Correspondence Files Division maintains control of the bank*s
general files and keeps certain documents in bound form.
The Club Office cooperates with the Federal Reserve Club in the further
ance of the social and recreational interests of the bank, and publishes "The
Federalist," a weekly publication of events of interest within the bank. The
Club Office also handles educational loans and advises on educational and other
matters.
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APPENDIX
BUFFALO BRANCH
The Buffalo Branch - which directly serves the ten westerly counties
of New York State, including the Cities of Buffalo and Rochester - also per
forms most of the functions performed by the head office of the bank in New
York City. The Branch holds member bank reserve accounts and nonmember clearing
accounts, pays out and receives currency, receives deposits for account of the
Government, prepares the transcript of the Treasurers general account, handles
and clears ordinary dollar checks and ration checks, and handles noncash col
lection items and withheld taxes. It issues Treasury Savings Notes and all
series of Savings Bonds, and redeems Savings Bonds of Series A through E, and
certain other maturing Government bonds, notes, certificates, bills, and
coupons. It also makes loans to member banks, performs custodian and other
services for member banks, administers the consumer credit regulation, performs
custodian, disbursing and other services for the Reconstruction Finance Corpora
tion and the Defense Plant Corporation, and in other ways serves the financial
community and banking institutions in western New York.
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