Full text of H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks : December 28, 1919

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STATEMENT FOB THE PRESS.
Released f o r p u b l i c a t i o n
Sunday morning, December 28, 1919)
not e a r l i e r .

St.80)
Federal Reserve oar ,
December 27, 1919

FEDERAL RESERVE BANKING IN 1919'
During the calendar year 1919 a c t i v i t i e s of the Federal Reserve banks continued i n
undiminished scope and volume. Cessation of actual h o s t i l i t i e s did not end the war
work of the banks, and loan operations f o r the Government i n c l o s e harmony with the
Treasury, i n v o l v i n g the f l o t a t i o n of the l a s t popular war loan and the placing of the
several issues of loan and tax c e r t i f i c a t e s , continued to be one of the leading, i f
not the leading f u n c t i o n of the Reserve banks. This task involved c o l l e c t i o n , conc e n t r a t i o n and disbursement oil government account of 151659 m i l l i o n d o l l a r s , of which
U,U91.5 m i l l i o n s represents the t o t a l of the Victory Loan a l l o t t e d ; 6,75^'^ m i l l i o n s the combined amounts of e i g h t s e r i e s of C e r t i f i c a t e s i s s u e d during the year i n a n t i c i pation of the Victory Loan and of four s e r i e s of the s o - c a l l e d l o a n c e r t i f i c a t e s ; and
4 , 4 1 3 . 6 m i l l i o n s - the t o t a l of e l e v e n s e r i e s of c e r t i f i c a t e s i s s u e d i n a n t i c i p a t i o n
of income and excess p r o f i t s taxes due i n 1919 and 1920.
The success of these i s s u e s was due i n part to the accommodation accorded to mem*
ber banks through the discount at p r e f e r e n t i a l r a t e s Of s o - c a l l e d war paper, i . e . ,
member banks' own n o t e s and customers' paper secured by United S t a t e s war bonds and
C e r t i f i c a t e s . Reported holdings of war paper which t o t a l e d s l i g h t l y over 1,400
m i l l i o n s at the c l o s e of 1918 and reached a maximum of 1,S63«5 o n Msy l6» about the
time of the consummation of the Victory loan, when war paper c o n s t i t u t e d 91*4 per cent
of the t o t a l discounts held by the Federal Reserve banks, gradually declined to
1 , 3 8 3 . 9 m i l l i o n s , or 8 4 . 1 per cent of the t o t a l discounts h e l d by these banks on September 19• Between that date and the middle of November these t o t a l s followed an
upward course. Since then, as the r e s u l t of rate r e v i s i o n , the amount of war paper
has gone down to 1 , 5 1 0 . 4 millions, or 68.8 per cent of the t o t a l discounts held on
December 26. Of t h i s t o t a l , 7 3 2 . 4 m i l l i o n s , or 4 8 . 5 Per cent, were secured by Liberty
bonds, 337.7 m i l l i o n s , or 2 2 . 3 P®r c e n t , - by Victory n o t e s and 440-3 m i l l i o n s , or 2$.2
per cent,by Treasury c e r t i f i c a t e s . Other discount^ which aggregated 302*5 m i l l i o n s
a t the c l o s e of I 9 I 8 , continued at a comparatively low l e v e l during the greater part
of the year. I t was only a t about the c l o s e of September that the discounts of
ordinary commercial paper began to show material i n c r e a s e s . On December 26 holdings
of t h i s c l a s s of paper aggregated 684,5 m i l l i o n s , and c o n s t i t u t e d
per cent of
the Reserve banks' t o t a l holdings of discounted b i l l s , as a g a i n s t l e s s than 18 per
cent the year b e f o r e . Acceptances on hand, which t o t a l e d 303*7 m i l l i o n s on December
27> 191S, moved w i t h i n moderate l i m i t s during the f i r s t part of the present year;
about the end of June the t o t a l f o r the f i r s t time i n the year was i n excess of 300
m i l l i o n s . During the l a s t two months of the year, however, the accumulation of
acceptances i n the p o r t f o l i o s of the Reserve banks proceeded a t a rapid pace, the
t o t a l held on the l a s t Friday of the present year, 5S5.2 m i l l i o n s , being over 21
per cent of the t o t a l b i l l s h e l d by the Reserve banks, compared w i t h 15 per cent the
year b e f o r e .
During the year the Banks' holdings of U.S. bonds show a reduction from 2 8 . 9 to
26.8 m i l l i o n s , the present holdings comprising l a r g e l y c i r c u l a t i o n bonds and 3 P e r
cent conversion bonds and, only to a very small e x t e n t , Liberty bonds. An i n c r e a s e
since January 3 of l 4 S . 4 m i l l i o n s i n Treasury c e r t i f i c a t e holdings represents l a r g e l y
additional investments of the Banks i n 1-year 2 per cent c e r t i f i c a t e s to secure F.R.
bank note c i r c u l a t i o n . Total earning a s s e t s increased during the year from 2,318'.2
to 3 , 0 8 0 - 5 m i l l i o n s , or nearly 33 per c e n t .
the
During the e a r l i e r part of the year w h i l e / g o l d embargo was s t i l l i n f o r c e , and
between August and November, the banks' gold reserves were increased through n e t
imports of gold and through the a c q u i s i t i o n of German gold and i t s t r a n s f e r to
London. These gains were p r a c t i c a l l y o f f s e t , however, by the amount of gold
withdrawn f o r f o r e i g n shipments, l a r g e l y to Spain, Argentina and the Far East,^
with the r e s u l t that gold reserves a t the c l o s e of the present year, 2 , 0 7 8 . 4 m i l l i o n s , are 11.9 m i l l i o n s l e s s than a year ago. Total cash r e s e r v e s show a s i m i l a r
d e c l i n e from 2 , 1 4 6 . 2 to 2,135*5 m i l l i o n s .




-

d

~

s t . g03i

As a g a i n s t moderate changes i n the banks* r e s e r v e h o l d i n g s , t h e i r n e t deposi t s , "because of the i n c r e a s e i n membership and i n consequence of the general c r e d i t
expansion, show an i n c r e a s e during the year from 1,552*3 to 1,70^*5 m i l l i o n s . Fede r a l Reserve note c i r c u l a t i o n on the l a s t F r i d a y ' i n 19IS t o t a l e d 2 , 6 8 5 * 2 m i l l i o n s .
During the e a r l y p a r t of the p res en t y e a r t h e r e was c o n s i d e r a b l e c o n t r a c t i o n of the
note c i r c u l a t i o n , f o l l o w e d by moderate expansion up to the c l o s e of September, when
i t reached a t o t a l of 2 , 6 5 5 . 3 m i l l i o n s . Since then the volume of c i r c u l a t i n g n o t e s
has i n c r e a s e d by over 400 m i l l i o n s , or a t an average weekly r a t e of over
millions.
In a d d i t i o n there has been an i n c r e a s e during the year of l*+3»9 m i l l i o n s of Federal
R e s e f $ f / n o t e s i n c i r c u l a t i o n , i s s u e d l a r g e l y to t a k e the p l a c e of s i l v e r d o l l a r s
melted and s i l v e r c e r t i f i c a t e s withdrawn from c i r c u l a t i o n under the Fittman A c t .
Some i n d i c a t i o n of the growth of the system i s a f f o r d e d by the comparative
f i g u r e s of p a i d - i n c a p i t a l , which show an i n c r e a s e during the y e a r from SO.7 to
about S7«3 m i l l i o n s , or 6 . 6 m i l l i o n s , corresponding to an i n c r e a s e i n the aggregate
c a p i t a l and surplus of member banks of 221»9 m i l l i o n s , as the r e s u l t o£ a c c e s s i o n
of new members and i n c r e a s e i n the c a p i t a l i z a t i o n of e x i s t i n g member banks.
The
l a r g e s t r e l a t i v e g a i n s i n p a i d - i n c a p i t a l are shown f o r the San F r a n c i s c o , Chicago
and Kansas C i t y banks, w h i l e the l a r g e s t i n c r e a s e s i n the number of banks admitted
to membership during the year are reported f o r the San F r a n c i s c o , Chicago and Cleveland d i s t r i c t s ,




P

.

St.803a
.

y

y

S

r

S

t

i

g

a
s
s
a
H
S
a
Gold with f o r e i g n agencies
Total sold held by hanks
Gold with Federal Reserve Agents
, Gold redemption fund
Total gold reserves
Legal tender notes, s i l v e r , e t c .
Total reserves

a

H

S

R

t

o

^

W

l

•

i

^

w

l
T
"
IVrro'qOO
Ln'o^'ooo
loi'ecn'mo

"

™

^

J

S

3

i
i
772,977,000
1,201,654,000
115.182.000

£

S

™

*

^ ' " . .

l

* ? Qjg Lpjp 000
' cy'ioU-'oOO
, j>
P -RE c-%g qqq
^
m£Lj '
'
'

5 T 3 - *
i ; f S
B i l l s bought i n open market
—2_2a_
s
Total b i l l s on hand
U. S. Government bonds
U. S. Victory notes
U. S. C e r t i f i c a t e s of indebtedness
All other earning a s s e t s
Total earning a s s e t s
Bank premises
.,
Uncollected items and other deductions from gross deposits
5^ Redemption fund against F.R. bank notes
All other resources
TOTAL RESOURCES
L I A B I L I T I E S
Capital p a i d - i n
Surplus
7 P -ZC-Y QQQ
Government deposits
_
786*874'000
Due to members,- Reserve account
'Lp'filo'ooo
Deferred a v a i l a b i l i t y items
ovYca'nnn
Other d e p o s i t s , including f o r e i g n government c r e d i t s
97,b^,OUU
Total gross d e p o s i t s
F.R, notes i n actual c i r c u l a t i o n
F.R. bank notes i n c i r c u l a t i o n - net l i a b i l i t y
All other l i a b i l i t i e s
TOTAL LIABILITIES
.
j ^ ^
+
Ratio of t o t a l reserves to net deposit and F.R, note
l i a b i l i t i e s combined
.
+.*^
e




—

qqq
' 26!834^000
' 54*QQQ
p 7 , ^07'000
. '
3 080 495,000
' n-r'nop'ooo
075 100 000
' 1? PT70C0
% nA? 000
6 125^2*000
00 > ^ »
q Q00

81',087,'000

V057*646*000
261 039*000
58'751*000
/• -jpc Uzp 000
^ '
hb.Zfo

$2,095,213,000
59,098,000
2,154,911,000

1,414,950,000
2,561,372,000
26,846,000
$4,000
303,552,000
2,291,836,000
12,926,000
1,140,224,QOO
13,333,000
11.114,000
6,224,604,000
•
64,459,000
1,733,013,000
248,607,000
105,069,000

87,049,000
21,087,000

2,751,148,000
2,928,894,000
259,975,000
56.451,000
6,224,604,000

* Includes 1-year
Treasury n o t e s .

46.8$

„»,

H
i
717,952,000
1,228,309,000
84,013,000
2,090,274,000
, 55-945,000
2,146,219,000
1,400,371,000
M
S
2,006,611,000
28,869,000
*222,677,000
^13,000
2,312,170,000
759,608,000
5,928,000
22,005,000
5,251,990,000
80,681,000
cV^'nnn
63,367,000
1,587,312,000
554,223,000
106,9^2,000
2,312,500,000
2,685,244,000
117,122,000
55.309,000
5,'-51,990,000
5°-6%
>

Released f o r p u b l i c a t i o n Sunday morning, December 28, 1919;

not

St.803b

earlier.

RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BASICS AT CLOSE OF BUSINESS DECE.IBER 26, 1919 •
RESOURCES
( I n thousands of d o l l a r s . ;
New
York
P
h
i
l
a
.
C
l
e
v
e
l
.
Richm.
Atlanta
Chicago
S t . L o u i s Minn. ifans.Cy.
Boston
Federal Reserve Bank of
8
11+7,197
1,182
1
0
,
2
2
0
2
,
4
0
g
8
,
3
5
0
2
4
,
0
6
0
2,738
>261
168
7,844
Gold c o i n and c e r t i f i c a t e s
Gold Settlement Fund - F.R.Board 36,211
!£:%
9,805
Gold w i t h f o r e i g n a g e n c i e s
53,860 238,053 40,272 5 5 , 2 0 0 3 4 , 1 3 6 38,919 108,900 2 2 , 4 2 5 13,226 33,807
Total g o l d h e l d by "banks
307,385 8 2 , 4 9 1 125,048 4 1 , 0 3 6 64,734 245,883 6 5 , 9 2 0 3 5 , 5 7 0 39,858
73,782
Gold w i t h F . S . Agents
6.171
7,051 17,572
5,922
2,377
^021
1,005
2 5 , 0 0 0 15,578
25,223
Gold redemption fund
51,173
7
7
,688
570,438 138,341 181,253 8 1 , 5 4 3 110,706 3 7 2 , 3 5 5 94,267
152,865
Total g o l d r e s e r v e s
72
141
45.602
5iq
533
188
970
1,829
2,240
.3,2%
Legal tender n o t e s , s i l v e r , e t c .
156:103
6 l £ ^ 138,880 181,786 s i , 7 3 1 111.676 37U:i8ii 9 ^ 5 0 7 51.2*5 7 8 , 0 3 1
Total r e s e r v e s
B i l l s discounted:
Secured by Government war
138,206
o b l i g a t i o n s (a)
56,630
A l l other
16,506
B i l l s bought i n open market (b)
211,342
Total b i l l s on hand
a
% %
*
1
I
I
I
l
l
I
I
I
I
539 l
U.S. Government bonds
CQ
2.0
—
4
—
~
U.S. Victory n o t e s
U . S . c e r t i f i c a t e s of indebtedness 21,661
Total earning a s s e t s
691
515
2,936
519
5OO
895
1,091
3,994
Bank premises
U n c o l l e c t e d items and other de81,682
235,089 8 6 , 2 9 4 91,234 9 0 , 2 8 3 50,072 139,834 70,669 2 9 , 2 8 5 9 0 , 6 6 4
ductions from g r o s s d e p o s i t s
5$ Redemption fund a g a i n s t F.R.
428
958
647
2,116
1,146
798
443
1,475
1,072
2,929
bank n o t e s
481
316
l
4
l
1
,
7
8
5
_05L
1.506
1,061
344
1,306
280
A l l other resources

^

&& i,oS;Sl

TOTAL RESOURCES

13:# 122U
:98ffijg.g:|j 4:g igg
399

62,236

i

f
~

-

400

i

f

13,002

47,758 1,075,100
665
424

560
261

13,237
8,062

4 7 3 , 7 7 0 1,907,518 472,962 525,565 312,669 2 8 5 , 7 0 0 948,706 302,370 174,769 302,126 1 9 5 , 6 5 4 423,623 6 , 3 2 5 , 4 3 2

(a) I n c l u d e s b i l l s discounted
f o r other F.R.Banks,viz:
(b) Includes bankers' acceptances
bought from other F. E.
banks:
With t h e i r endorsement
Without t h e i r endorsement



D a l l a s San Fran.
Total
6 , 6 1 7 10,406
229,445
14,772 3 6 , 2 8 6
352,785
3,492
6,179
134,320
2 4 , 8 8 1 52,871
716,550
2 7 , 8 7 8 130,447 1 , 2 4 0 , 0 3 2
1.422
8,304
121,850
56,181 191,622 2 , 0 7 8 , 4 3 2
1.166
384
57,104
57,3"*7 1 9 2 . 0 0 6 2 , 1 3 5 . 5 3 6

25,945

14,670

12,265

5,080

5,065

25,307
20,113

19,301
9,721

9,805

5,065
1,113

-

10,081
5,184

40,615

69,899
58,201

St.803c

R e l e a s e d f o r p u b l i c a t i o n Sunday morning, December 28, 1919i n o t e a r l i e r «

RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS AT CLOSE OF BUSINESS DECEMBER 26, 1919*
( I n t h o u s a n d s of d o l l a r s . )
L I A B I L I T I E S
Total
Boston New York P h i l a . C l e v e l . Richm. A t l a n t a Chicago S t . L o u i s Minn. Kans.Cy. D a l l a s San F r a n .
F e d e r a l Reserve Bank of
Capital paid-in
87,339
7,108 22,388 7 , 8 8 4 9,482 4,392 3,424 12,347 4,063 3,074 4,012 3 , 4 1 7 5 , 7 4 8
Surplus
3, goo 2,805 9,710 2,5S9 2,320 3,957 2 , 0 2 3 4 , 5 7 2
81,057
5,206
5.311
5,86c
32,922
Government d e p o s i t s
5,105
1,646
2
,
7
2
1
3.S72
12,641
2,966
6,746
6,959
8,319
5,377
7,667
72,357
8,338
Due t o members - R e s e r v e a c c o u n t 110,335
706,254 95,505 127,627 61,081 61,081 253,864 67,092 51,532 7 7 , 7 2 3 58,423 116,357 l > 7 8 6 , 8 7 4
Deferred a v a i l a b i l i t y items
188,383 80,832 70,420 6s,364 36,129 103,130 55,155 15,^59 7 8 , 4 4 1 37,607 25,467 822,680
63,293
Other d e p o s i t s i n c l u d i n g f o r e i g n
8,288
42.685
6.812
6.l47
v6io
2.681 10.016 3-^SS ?^2l£ 3 ^ 4 - 5 2 , 0 6 6 %s£§
9-7.^-5c
government c r e d i t s
Total gross deposits
130,254 949,363 186,135 210,9)40 141,374 104,996 368,676 129,707 7 1 , 9 2 8 166,768 103,473 155,356 2,779,570
F*R» n o t e s i n a c t u a l c i r c u l a t i o n 246,455
824,944 240,273 2 7 2 , 8 8 4 148,693 156,599 510,018 148,452 8 7 , 4 7 5 105,100 7 4 , 8 8 6 241,867 3 , 0 5 7 , 6 4 6
F.R,bank notes i n c i r c u l a t i o n net l i a b i l i t y
20,744
54,624 29,028 22,197 12.051 15,663 41,109 15,610 8 , 1 5 7 1 9 , 5 ^ 6 1 0 , 4 1 5 1 1 , 8 9 5
261,039
All other l i a b i l i t i e s
4.003
22,677 4,331 4 , ^ 0 2 2^359—2,213 M 4 6 —l-r949- - M 1 5 — 2 ^ 4 ^ - — l > > 4 — W #
TOTAL LIABILITIES

473,770 1,907,512 472,962 525,565 312,669 285,700 94s,706 302,370 174,769 302,126 195,654 423,623 6,325,432

Contingent l i a b i l i t y a s e n d o r s e r
on Discounted b i l l s r e d i s c o u n t e d
w i t h o t h e r F.R, banks
Bankers* a c c e p t a n c e s s o l d t o
o t h e r F . R. banks
F . R. n o t e s o u t s t a n d i n g
F . R. n o t e s h e l d "by bank

13,000

27,615

4o,S15

69,899
253,669
7.214

F.R.notes i n a c t u a l c i r c u l a t i o n 246,455

69,839
FEDERAL RESERVE NOTES OUTSTANDING AND IN ACTUAL CIRCULATION
249,438 284,335 155,232 162,809 533,738 167,515 88,916 111,005 77,977 277,801 3,292,098
104,719
%l£5 11,451 , 6,539
6,210 2 3 , 7 2 0 19,063 1 >44] 5,905—3,091 3 5 , 9 3 ^ — 2 3 4 , 4 5 2

929,663

824,944 2 4 0 , 2 7 3 272,884 148,693 156,599 510,018 148,452

8 7 , 4 7 5 105,100

74,886 241,86? 3,057,646

DISTRIBUTION OF BILLS AND U. S . CERTIFICATES OF INDEBTEDNESS BY MATURITIES.
6 l t o 90 days
Over 90 days
Total
W i t h i n 15 days l 6 t o 30 days
31 t o 60 days
B i l l s discounted
B i l l s bought i n open m a r k e t
U* S. c e r t i f i c a t e s of i n d e b t e d n e s s




1,484,790
123,727
15,745

244,890
100,060
4,865

232,715

209,27s
3,9%o

152,125
152,147
10,715

20,358

2,194,878

23 8 , 2 4 2

273 , 507

585,212

St.803d

Released f o r p u b l i c a t i o n Sunday morning, December 28, 1919; not e a r l i e r .

7

FEDERAL BESB1VE AGENTS' ACCOUNTS AT CLOSE OF BUSINESS DECBBET, 2 6 ,

1919-

(In thousands of d o l l a r s . )
Boston
iSBERAL RESERVE NOTES:
V
^ Received from Comptroller

Phila. Clevel. Richm. Atlanta Chicago St.Louis Minn. I^ns.Cy.

U-75,920 1,975.560 510,780

Returned to Comptroller
^

Hew York

Chargeable to F. R. Agent
In hands of F ^ R* Agent

k Issued, to F.R. bank- l e s s anount
E returned to F.R. Agent f o r
redemption

icn.frn
28U.3U9

30,680

253,669

q^q,«Q7

U7^,7UO

302,900 295,000 826,400 299,600 152,080 202,160 13s,780 1+06,300

?4n.on? 17%,7%% t ? 8 . 7 ^ n

1,035,663 270,775

Dallas San Fran.

qi.746 ?S7.^4?

n?,Q85

300,955 17^,170 203,254 539,058 137,515

106,000 21,340 16,620 18,933 40,445

5,320 20,000

929,663 249,438 284,335 155,232 162,609 533,738

55,604

8 ^ 5

96,476 115,695
7,560

58,916

4,000

13,052

5,738

2,590

2,71S

2,49s

55,000237,145

58,930

19,800

37,360

111,005

b,060,280

4fl,433 i ? 7 , 3 ^ 9 2 - ^ 8 3 , 0 6 9
90,347

4,690 12^370

167,515

Total

278,951 3,577,211
1,150

285,113

77,977 277,501 3,2?-,Q9o

COLLATERAL SECURITY FOR
OUTSTANDING NOTES:

* Cold coin and c e r t i f i c a t e s on
hand

T

183,740

Gold redemption fund

14,782

Gold settlement fund - F.R.Board

59,000

f n i g V b l e paper, Mnimm r e a r e d
MOUNT^OF N I M B L E FAFFS DELIVEEED




-

32,025

-

13,645

16,101

13,023

1,036

110,000

66,390

50,000

40,000

2,500
4,234

to.?7*

!66.gU7 159.257 1 1 ^ 0 6

^ ^ 6 5

176,86? 222,792 120,967 106,172

-

^

383,370 115,09s

. -

^ 4 6 7 T . 1 4 7

W

m,005

69,456 107,359

5,331
4,563

-

244.148

19,247

103,575

14,484 111,200

892,309

MSUjtlJSiUMg

77.OT = 7 7 , m 3 , ^ , 0 9 8
61,795 159,315

2,711,oS8