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FEDERAL RESERVE BANK OF NEW YORK I" Circular No. 7611 Accounting L January 14, 1927 J Department Twelfth Annual Statement To the Stockholders of the Federal Reserve Bank of New York: We hand you herewith a condensed statement of the condition of this bank at the close of its fiscal year, December 31, 1926, and of the Profit and Loss account for that year. For convenient comparison, the relative items for the previous year, 1925, are also shown. There is also included a comparative statement showing the volume of the principal operations conducted by the bank. We trust that you will find these various statements of interest, pending the issuance of the annual report of the bank which you will receive shortly. Very truly yours, BENJ. STRONG, Governor. \ Statement of Condition RESOURCES Dec. 31, 1926 Dec. 31, 1925 $282,987,466.59 $329,996,016.59 15,197,976.79 13,516,129.74 439,891,808.03 331,225,694.40 223,474,611.35 254,226,803.87 22,523,994.00 27,256,282.00 $984,075,856.76 $956,220,926.60 $15,893,779.00 $16,966,978.42 $146,539,450.00 $197,709,000.00 37,935,764.92 35,234,620.12 101,443,211.79 42,019,937.59 58,863,750.00 57,199,050.00 CASH R E S E R V E S held by' this bank against its deposits and note circulation: GOLD HELD BY THE FEDERAL RESERVE AGENT as part of the collateral deposited by the bank when it obtains Federal Reserve notes. This gold is lodged partly in the vaults of the bank and partly with the Treasurer of the United States GOLD R E D E M P T I O N F U N D in the hands of the Treasurer of the United States to be used to redeem such Federal Reserve notes as are presented to the Treasury for redemption G O L D AND GOLD CERTIFICATES in vault GOLD I N T H E GOLD SETTLEMENT F U N D lodged with the Treasurer of the United States for the purpose of settling current transactions between Federal Reserve districts L E G A L T E N D E R N O T E S , SILVER, AND SILVER CERTIFICATES in the vaults of the bank (available as reserve only against deposits) TOTAL CASH RESERVES . NON-RESERVE CASH consisting largely of National Bank Notes, and minor coin LOANS AND INVESTMENTS LOANS TO M E M B E R B A N K S : On the security of obligations of the United States. By the discount of commercial or agricultural acceptances paper or ACCEPTANCES bought in the open market U N I T E D STATES GOVERNMENT bonds, notes, and certificates of indebtedness FOREIGN LOANS on Gold. 2,106,000.00 $344,782,176.71 $334,268,607.71 BANK PREMISES $16,276,254.61 $16,617,060.69 CHECKS AND OTHER ITEMS IN PROCESS OF COLLECTION . 188,450,357.86 170,992,612.34 ALL OTHER MISCELLANEOUS RESOURCES 1,788,471.18 4,162,451.27 TOTAL MISCELLANEOUS RESOURCES . $206,515,083.65 $191,772,124.30 TOTAL LOANS AND INVESTMENTS MISCELLANEOUS RESOURCES TOTAL RESOURCES. 1,551,266,896.12 $1,499,228,637.03 Federal Reserve Bank of New York L I A B I L I T I E S Dec. 31, 1926 Dec. 31, 1925 $416,874,122.50 $393,036,812.50 $416,874,122.50 $393,036,812.50 $835,959,724.96 $847,248,505.07 498,341.80 3,183,106.57 34,844,167.75 11,282,630.44 $871,302,234,51 $861,714,242.08 $162,884,891.11 $150,262,580.52 2,142,447.92 1,856,109.53 $165,027,339.03 $152,118,690.05 $36,449,250.00 $32,394,500.00 61,613,950.08 59,964,392.40 $98,063,200.08 $92,358,892.40 CURRENCY IN CIRCULATION FEDERAL R E S E R V E N O T E S in actual circulation, payable on demand. These notes are secured in full by gold and discounted and purchased paper TOTAL CURRENCY IN CIRCULATION DEPOSITS RESERVE DEPOSITS maintained by member banks as legal reserves against the deposits of their customers U N I T E D STATES GOVERNMENT D E P O S I T S carried at the Reserve Bank for current requirements of the Treasury OTHER DEPOSITS including foreign deposits, deposits of non-member banks, etc TOTAL DEPOSITS MISCELLANEOUS LIABILITIES DEFERRED ITEMS, composed mostly of uncollected checks on banks in all parts of the country. Such items are credited as deposits after the average time needed to collect them elapses, ranging from 1 to 8 days ALL O T H E R MISCELLANEOUS LIABILITIES TOTAL MISCELLANEOUS LIABILITIES CAPITAL AND SURPLUS CAPITAL P A I D I N , equal to 3 per cent, of the capital and surplus of member banks SURPLUS—That portion of accumulated net earnings which the bank is legally permitted to retain TOTAL CAPITAL AND SURPLUS TOTAL LIABILITIES $1,551,266,896.12 $1,499,228,637.03 Profit and Loss Account For the calendar years 1926 and 1925 1926 1925 EARNINGS FROM LOANS TO MEMBER BANKS and paper discounted for them FROM ACCEPTANCES OWNED FROM UNITED STATES GOVERNMENT OBLIGATIONS owned... OTHER EARNINGS TOTAL EARNINGS . $5,836,835.57 2,001,668.33 2,379,546.18 382,917.47 $5,188,505.53 1,469,858.04 2,984,698.11 574,111.85 $10,600,967.55 $10,217,173.53 ADDITIONS TO EARNINGS FOR SUNDRY ADDITIONS to earnings, including income from 174,366.14 Annex Building DEDUCTIONS FROM EARNINGS FOR C U R R E N T B A N K OPERATION. (These figures include $5,991,459.59 $6,006,571.11 new notes to replace worn notes in circulation, and to maintain supplies unissued and on hand, and the cost of redemption 429,981.88 318,630.63 FOR DEPRECIATION, S E L F - I N S U R A N C E , AND O T H E R R E S E R V E S , ETC 604,143.98 788,673.37 $7,025,585.45 $7,113,875.11 $3,749,748.24 $3,103,298.42 I N DIVIDENDS paid to member banks, at the rate of 6 per cent on paid-in capital $2,100,190.56 $1,888,195.73 IN ADDITIONS TO SURPLUS—The bank is permitted bylaw to accumulate out of net earnings, after payment of dividends, a surplus amounting to 100 per cent, of the subscribed capital; and after such surplus has been accumulated to pay into surplus each year 10 i er cent, of the net income remaining after paying dividends. 1,649,557.68 1,215,102.69 $3,749,748.24 $3,103,298.42 most of the expenses incurred aafiscalagent of the United States) FOR F E D E R A L R E S E R V E CURRENCY, mainly the cost of printing TOTAL DEDUCTIONS FROM EARNINGS . N E T I N C O M E available for dividends, additions to surplus, and payment to the United States Government DISTRIBUTION OF NET INCOME Any net income remaining after paying dividends and making additions to surplus (as above) is paid to the United States Government as a franchise tax. No balance remained for such payments in 1926 or 1925. TOTAL N E T INCOME DISTRIBUTED 4 J Gross Earnings by Months The following figures show in comparison the gross earnings of the bank by months for the years 1926 and 1925: 1926 . 1925 $784,164.19 $860,325.11 February 890,812.62 818,113.09 March 883,873.04 963,013.63 Apnl 761,713.17 845,435.45 January ^ay June 869,518.24 886,437.25 827,544.39 746,267.09 July 888,155.98 781,267.08 August 852,827.28 769,788.29 September 906,301.92 868,521.71 October 856,854.77 878,820.01 859,293.80 769,208.59 1,189,908.15 1,029,976.23 $10,600,967.55 $10,217,173.53 November " December Ratio of Net Earnings 1926 1925 10.7 9.8 Per cent earned on capital and surplus 3.9 3.4 Per cent earned on capital, surplus, and deposits 0.4 6.3 Per cent earned on capital paid in 5 Comparative Statement^ ;Showing Volume of Operations The following table presents in comparative form for the past three years the volume of the principal operations of the Federal Reserve Bank of New York, which are of such character that they can be expressed in quantitative terms. At the close of business December 31, 1926, the total personnel of the bank, including the Buffalo Branch, numbered 2,446. 1926 SUPPLYING 1925 19X4 C U R R E N C Y AND C O I N CURRENCY PAID OUT, EECEIVED, OR REDEEMED Individual notes counted Dollar amount paid and received* 605,280,000 554,123,000 512,097,000 $7,357,861,000 $6,739,530,000 $6,014,938,000 1,129,026,000 981,654,000 917,121,000 5,611 5,055 4,623 284,630 274,076 252,210 COIN PAID OUT OR RECEIVED, a service previously performed largely by the Sub-treasury, but now entirely in the hands of the Federal Reserve Bank. Individual coins received Tons of coin received during year * CURRENCY AND COIN SHIPMENTS, number of shipments to and from out-of-town banks during the year MAKING LOANS AND INVESTMENTS BILLS DISCOUNTED FOR MEMBER BANKS, either discounted customers' paper or advances against the notes of member banks secured by collateral in the form of Government securities or commercial or agricultural paper. Number of bills discounted Dollar amount ACCEPTANCES 35,660 36,272 39,622 $17,242,348,000 $17,067,799,000 $7,030,842,000 $4,490,000,000 $3,984,000,000 $3,672,000,000 AND GOVERNMENT OBLIGATIONS purchased for the account of this bank and other Federal Reserve Banks. Dollar amount COLLECTING CHECKS, DRAFTS, NOTES, AND COUPONS CASH ITEMS, mostly checks, handled for collection for banks in all parts of the country. Number of items Dollar amount NON-CASH ITEMS, handled for 154,903,000 142,522,000 136,166,000 $92,915,628,000 $88,013,358,000 $68,397,734,000 collection, in- cluding drafts, notes and coupons. Number of items Dollar amount * This figure does not include Buffalo branch operations. 2,064,000 2,040,000 2,429,000 $2,065,742,000 $2,085,032,000 $1,873,743,000 1926 1925 1924 SUPPLEMENTARY SERVICES SECURITIES HELD in safekeeping for the United States Government, the War Finance Corporation, and others. Average dollar amount $1,289,000,000 $1,161,000,000 $979,000,000 $305,722,000 $173,682,000 ACCEPTANCES AND OTHER SECURITIES BOUGHT OR SOLD for member banks, and foreign banks. Dollar amount $599,029,000 FUNDS TRANSFERRED BY TELEGRAPH to and from all parts of the country for the Treasury Department and member banks. Number of transfers Dollar amount 329,000 294,000 293,000 $44,392,474,000 $38,821,300,000 $35,182,641,000 SERVICES I N CONNECTION W I T H GOVERNMENT LOANS UNITED STATES GOVERNMENT SECURITIES issued, redeemed, or exchanges, including Government bonds, notes, and certificates of indebtedness. Number of items Dollar amount 1,572,000 $2,635,722,000 1,640,000 $2,959,125,000 2,987,000 $3,522,486,000 COUPONS PAID ON GOVERNMENT SECURITIES. Number of coupons 10,783,000 12,156,000 14,055,000 Dollar amount $296,577,000 $311,647,000 $332,369,000 (In addition to these operations for the Treasury, the bank performed other work for the Government connected with the currency, the collection of checks, the custody, purchase and sale of securities, the transfer of funds, etc., which have been referred to under their respective headings.) • • 7 DIRECTORS AND OFFICERS DIRECTORS Term Expires Dec. SI THEODORE F . WIJITMABSH, New York City JACKSON E. REYNOLDS, New York City President, Francis H. Leggett & Company 1928 President, First National Bank SAMUEL W. REYBURN, New York City ROBERT H. TREMAN, Ithaca, N. Y. President, Lord A Taylor , Chairman 1929 President, The Tompkins County National Bank A ' Term Expires Dec. SI 1929 CLARENCE M. WOOLLEY, Greenwich, Conn. OWSN D. YOUNG, New York City President, Peoples National Bank B 1928 1927 Chairman, American Radiator Company 1927 DELMER RUNKLE, Hoosick Falls, N . Y. 1927 1929 Deputy Chairman Chairman, General Eleotrio Company 19.28 MEMBER OF FEDERAL ADVISORY COUNCIL J A M E S S. ALEXANDER Chairman, National Bank of Commerce in New York OFFICERS GENERAL OFFICERS B E N J . STRONG, Governor J . HERBERT CASE, Deputy Governor GEORGE L. HARRISON, Depnty Governor EDWIN R. KENZEL, Deputy Governor Louis F . SAILER, Deputy Governor J E S S E HOLLADAY PHILBIN, Secretary L. RANDOLPH MASON, General Counsel and Assistant General Counsel EDWARD L. DODGE, General Auditor SENIOR OFFICERS ARTHUR W. GILBART, RAY M. GIDNEY, Controller of Cash and Controller af Collections Controller of Loans LAURENCE H. HENDRICKS, Controller of Fiscal Agency Function J. WILSON JONES, LESLIE R. ROUNDS, Controller of Administration Controller of Accounts JUNIOR OFFICERS DUDLEY H. BARROWS, CHARLES H. COE, JAY E. CRANE, EDWIN C. FRENCH, Manager, Administration Department Manager, Check Department Manager, Foreign Department, and Assistant Secretary Manager, Cash Department WALTER B. MATTESON, ROBERT M. O 'HARA, J A M E S M. RICE, STEPHEN S. VANSANT, I. WARD WATERS, Manager, Manager, Manager, Manager, Manager, Securities Department Bill Department Accounting Department Safekeeping Department Collection Department FEDERAL RESERVE AGENT , Federal Beserve Agent W. RANDOLPH BURGESS, Assistant Federal Beserve Agent CARL SNYDER, General Statistician HERBERT S. DOWNS, Manager, Bank Belations Department BUFFALO BRANCH DIRECTORS ELLIOTT C. MCDOUGAL, FRANK W. CRANDALL, President, National Bank of Westfield, Westfield, N . Y. ARTHUR HOUGH, Chairman, Chairman, Marine Trust Company, Buffalo FRED B. COOLEY, President, New York Car Wheel Co., Buffalo President, Wiard Plow Company, Batavia, N. Y. J O H N A. KLOEPFER, HARRY T. RAMSDELL, President, Liberty Bank of Buffalo Chairman, Mfrs. and Traders Trust Co., Buffalo WALTER W. SCHNECKENBURGER, Managing Director OFFICERS W A L T I B W. SCHNECKENBUBGEB, Managing HALSEY W. SNOW, J R . , Cashier Director CLIFFORD L. BLAKESLEE, Assistant Cashier ELMER L. THEOBALD, Assistant Cashier
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