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.Jii, Released for publi~ation Friday monlir.g·, Ile'~- 28; not earlier. ' l·, ·,; ' STATE!.-1ENT JOR THE PRESS St .. 3862. Federal Reservo Bnard, De~E'Inber 27, :1.923 •. FEDERAL BESERVE BANKING llJRlNG 1923. The condi t:i.on of the Feoeral Reserve Ba,rt..ks at the end of tbe year 1923 shows relatively little change from that pre"7ai.ling at the end of the pre~eding year. lt>~J'l liquidation and the rer'luction in Fede~al reserve note c].r~ulation, both of which began at the end of 1920, had practically ceased by the middle of 1922, and sinM then changes in t'.ondi tion of Federal !'eserve banks have not been vary wide, in fact the pa,st two years have been charac.terized by a condition of relative stability in Federal reserve banking. I>Eb-1and for C".redi t accomiLOdation during 1923, represented qy the total of bills discounted, bills bought, and Government securities, averaged about $1,150,000,000, though there has been consideratle change in the composition of the total; Federal reserve note circulation, ezr.ept for the seasonal reduction in J"ru1ua.ry, has fluc.tua.ted around $2,250,000,000 thro1:.ghout the year; cash reserves at the end of 1923 wex-e $3,138,000,000, differing little from the total reported a year earlier; While the reserve ratio during the greater part of the year stood at aro1md 76 per cent, though on the last report date of the year it dropped. to 73. 3 per cent, mainly because of the increased demand for currenc~y that manif~sts itself at the holiday season. Considerable cbange has taken place in the composition of the earning assets of the Federal reSP.rve banks. On Dec.erriher 27 of la.st yee;r the banks held $630,000,000 of bills disC'.o1mtP.0~ $2l4-6,ooo,ooo of bills taught in open n1arket, and $458,000,000 of U. S. Government sec~~ities. At the end of the present year U. S.security~boldings stood at $l04,000,000, the Federal reserve banks having permitted. their security holdings to run off at maturity, or when called for redamption by the Treasury DepartJ:uent, wi t..,_out replac.ing the.tn by additional purchases in the open marke.t. The failure of the lfecleral reserve banks to replace their holdings of maturing securities made 1 t necessary for nJember banks to in~':ease their borrowings on discounted paper in order to retain the amount of reserve bank credit required to meet the demands of commerce and business. Holdings of bills bought in open market de~lin-· ed. during the early part of tpe year, reaching $182,000,000 on February 21. This v.as £t>llowed. by a steady rise to $282»000,000 on May 16, after which there was again a gradual reduction to $17l,OCOPOO on September 19. Additional purchases since th~ have brought the total holdings up to $336,000,000 on December 26, the largest amount held during the year. Holdings of bills discounted fncreased from $630,000,000 on December Zl of last year to $857,000,000 at the end of the present year. The incraase in discounts wa.s almost continuous up to October. Since thtntincreased. open market purchases of acceptances by the Federal reserve banks have been acco~anied with a decline in discount a~~ommodation, ~~e largest relative increases in discount accommodation for the year are shown by those reserve banks that serve districts in which agriculture, p~;~.rticularly cotton-growing, is of major in~ortance. Disr.owt holdings of the Atlanta bank, for example, increased from $30,000,000 to $69,000,000 between De~anber 27,1922 and December 26, 1923, those of St. Louis - from $30,000,000 to $62,000,000, and of Kansas City - from $30,000,COO to $50,000,000. Net imports of gold during the eleven months ending N:lvember 30, amounting to approximately $262,000,000, enabled the balJks o'!" the (\Ountry as a whole trJ finan~e the larger loan requirements of their oustomers \"~ ~hout an i~rease in the total volUille of reserve bank c:redi t. in use. , Federal reserve note circulation, after the seasonal. decline in January amount-' ing to about $200,000,000, ren1ained at a fairly stable level the balance of the year until Der.ember, When the usual holiday demands brought the total up to $2,34o,ooo,ooo. The low point in Federal reserve note "ircula.tion was reac'.h~d this year on A'9.gust l, a week later than the low point of total earning assets, th~ circulation of Federal reserve notes on the date mentioned baing $2,188,0CO,OOO. An in~rease of over $300,000,000 in the amount of gold and silver certificates in ~irr.ulation between January 1 and December 1. was ltJore than sufficient to meet t~e additional curren<\1 ' requiren1ents of the country, with the result that the aJIJOunt of Federal reserve notes in circulation is now somewhat less than it was a year ago. Some of the Federal reserve banks, however, show relatively large changes in their note r.irculation during the year , no ta.bly Atlanta and Dallas with increases of $19, $00 , 000 and $16 , 000 , 000 , respe~tively, and New York with a reduction of $170,000,000~ While there has been little change in cash reserves of [the Systan as a whole,. considerable interdistrict shifting of reserves has taken p~ace, the largest relative. reductions being shown for Atlanta, whose total reserves at :the end of this year were· $121,000,000 as compared with $141,000,000 a year earlier, ~d New York with a deDigitized cline for FRASER from $1,056,000,000 to $885,000,000. ,·· . -~ -~ 1 ,, ,~,, 1 ·j .1 Pelea.sed for publ.~cati on Fr5oar mornil:.gr ·uecem~e:r 2,), 192_3 .. ·· St. 3<362a PE'~OTJ:iCES ADD Ll.AlULITE<~S OF THE 'i'~PELVE FEDEB.d!. :i.:FSZ::'V:b BA.:'1I<.S· COM3IN'ED (In thousands of oolla::rn~) De.;. 2§.,~..__]:923 D~c. lO~gj_ D:'!c. 2]~22 __ BES 0 URCE S 34:1,401 Geld ·and gold certificates Gold settleirent fund - F. R. Board ~rvtaLgolQ_~e1L~ bankS • . • • . Gold wlth Federal Reserve .Agents • , Geld redemption fund • . • . .. _!ot<;!l__g£ld ~serves . • Reserves other·. than gclg , • •.. ....---.,.-T.o-tal reserves .. ... Non-re·se·rve cash • • . • Billi d iscotinted.: Sec. by U. S. Government obligations •• O.ther· bills d.iscounted '·. . , • Bills. ,bo.ught in open market Total bills on hand . tt. S. bonds and notes . • . . U. s. Certificates of indebtedness Municipal war·rants. • . • . . . Total earning asse~~ 5% TOTAL B~SOURCES ... • t ... . . . .. . . . . . .. .. . Total deposits . net liability • • , . . . Deferred availability items , . • All other liabilities . • . . . , 733, l~05 3,137,516 69,661 3,163,438 44l,eli2 415,;309 335,415 1,193,566 385,425 364,771 --- LIABILITIES Capital paid in . •• l Surplus ~ · . . ·. Deposits: Government • , • . . Member bank - resarve account . Other deposits . F. R. notes in actual circulation 895,005 839,595 2;109 ,814 ;l7~ 2,140,445 66,~ -· 6~..L092. 3,07~ !.0"~ 7 3,091,135 72,303 66,~ "'' 1~323 • F. B. Bank notes· in circulation - 273,Z25 831835 ; • • Bank premises • . . . . • • • Redempiion fund against F. R. Bank notes •. Uncollected items • • • . All other resources , . • , 34S,564 _2:t_l, 011 555~604 .. ... .. 51 1,297,775 57,105 28 53,+-23_ 3, 040, l~39 108 1% --~3, 143,&3 7 64,5L~s * 322,379 1, 072, 575 72,957 8,292 51 1,153' 875 56,951 1, 3)4, 101 26 734,270 2,520 757,500 47.227 - 15,512. 5,169,377 5,1&8,625 _!5,226 5, 305,411 110,103 218,369 110,156 213,369 215,396 4_2,811 1,874,486 20,572 11,334 1,&49' 596 _21!92C:__ _ _1_!_!_!65 1.937,869 1,882,352 1, 900' 255 2,340,375 470 2, 296,436 2,464,121 417 654,456 57b,502 535,490 26,701 Ratio of total reserves to deposit and F. R. note liabilities combined. • • . . .. 2,198,846 59:t,6oe 15,684 TOTAL LIABILITIES • . Contingent liability on bills purchased for foreign correspondents • • • • • 5C9,~80 17,808 107,256 . 7, 8CCJ 1, 861,281 10,632 ~!379 __ 5,138,625 5' 305 '411 29.!3~·L 75.7% 72.l?v 17 ,Z~36 34,014 *Not shown separately prior to January,19.:2). C, Released for :p-.:tli ~,-;-.ion on Friday morning, Decerni.1er 28, 192.~;; l":O':. earlier. RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS AS ·'If'~ Federal Reserve Bank of Gold and gold ce_rt ificates Gold settle~nt f~~d -.F.R.Board '!'ot. al gold held tu bar.ks Gold with F. R. Agents Gold-redemption fund Total gold reserves Reserves other than gold Total ~esenes No~reserve cash Boston ..New York 19,237 .39.010 53,247 170,969 11,234 24o,45o 3,22q 243,670 15,351 _= 168,?20 76.886 245,106 603,674 10,195 863,975 Phila. · 32,177. 23,454 55,631 182,749 11.481 249,861 2~ 4 ' 9,241 885,222 259,102 9.937 2,996 . -~· 1\:."J: GLOSE OF BUSINESS, DECIDJ::-):c::, C::b, l.;:c:_:-. (In thousands of-dollars) . Clc:ve·.;··- Ric..h. Atlanta Chicago ll,906 5,366- 6,546 47.590 80,86 34.622 15,786121,441 92,773 25,332 169,031 224,331 86,465 _334,973 2 . 2 424 4.7~ 4,862 3~;9ee 113,576 116,531 553,866 '1 tJ!. 2,~ 2,599 4,280 6' ,034. 322,820 116,175 120,811 564,900 4,829 1,317 8,336 5.347 St.Louis Mirm. Kans.Cy. Dallas San Fran. Total 4,609 8,7~9 3,172 11,879 21,910 341,401 33.454 23.~48 38,063 32,637 48,789 52,314 J,S4S 1,512__ 90,700 s6,46s 6,153 64' -3 96,553 87,111 6,976 1,464 45.919 49,o;n 34,565 6,081 s9,737 3,021 92,758 3,209 158,190 45,453 39.947 26,740 20,301 53,292 19,785 . 6,413 46,766 16,697 28,893 28,763 49,034 51,875 42,424 16,418 18,599 31,052 15,137 27,016 26,419 2,C5C 55,485 5.733 61,218 2,555 1;.0,130 553.604 62,090 .1395,005 218,352 2,109,814.. 4,3)4 66.~ 2s5,376 3,07~7w 6-b.~ ... ~ 1,500 286,876 3,137,516 6,844 69,661 Bills discounted: · ·· Secured ey ·u.. S.Dovt. obligations 27,180 52,082 33.973 113,235 -To.tal bills on har.d · 5,202 u. s. bonds and notes 2,272 U. S. Certificates of indebtedness Other Jills discounted ~ills bought in open market ~klnicipal warrants Total ·ea.TI)ing -aSsets Bank premis-es 5% 120,709 4,434 90.052 All ·other rasouraes TOTAL c. 415,309 235,008.95,101 108,649 57,824 81,828 145,769 62,252 23,013 50,321 6o,26) 100,297 1,193,566 284 10,229 8,638. 12,5o4 6,355 9,185 88,835 12,349 12,805 9,943 1,341 10,050 147 1,247 7 722 14 514 350 15,323 1 51 317,407 108,053 119,839 59,165 82,170 156,720 62,252 31,665 66,974 109,452 1,297. 775 14,528 755 9,580 2,617 2,955 8,715 1,348 2,143 1,953 3,088 57,105 Rademption fund against 28 53,281 241 441,~1Q 32.9 51 ...J9.....::,8~0:J...9_.=.2.a...3'-=2.:.1-=12~,L:!49'J...3J-_.:!:4o~.~6!::!:02=--_ _:4~3~..-._~18~2'---.-!:6~1.0~----=47J..J•u9..r.:76~...J..35.u•....J.34::r..3L-_3u.3~6L,4~1:.2....5 F. R. Bank not-?s Uncollact~d itemS 2,808 23,l'949,485 41,S20 121,206 60,382 58,153 57,203 25,008 1,360 176 215 580 677 70,194 23,283 14,878 496 100 3,596 37,366 26,035 38,627 303 3~248 4,192 28 591,608 15,684 437,686 1,349,660 431,464 515,436 237,563 239,957 806,372 196,798 140,857 202,464 162,011 449,109 5,169,377 0.,...,.... ,.-~.,.~~·--;-::--~;'···\, --~·-"'<" he~eased for publi~ation Friday.morning, De~eu~er ··"" -.· . "'"""~- ",.... ' St.3S62c 28, 1923; not earlier, RESOURCES .AND LIABILITIES OF '!HE F'EDEHAL RESERVE BANKS AT CLOSE OF ·BUSINESS DECEI:v!EER 26, 1923. LIABILITIES (In thousands of dollars) Fe.:Jeral Reserve Bank of Capital Suzplus Dep0s:tts: Government Member bank - reserve account Other deposits Total deposits F.B. notes in a~tual cir~lation F.R.Bank notes in ~ir~ulation net l i ability Deferred availability items All other l i E~.bi 1i ties TOTAL LIABILITIES Ratio of total reserves to deposit and F. R. note liabilities combined, per aent Contingent liabili ·ty on bills parehased for foreign correspondents Boston 7,890 16,312 4,105 121,784 126 York Phila. Cleve. Rich. .Atlanta Chi~ago St.Louis Minn. Kans.Cy, Dallas San Fran. Total 29,439 9,941 12,338 5,756 4,430 3.51179 5.020 3,498 4,556 4,194 7,862 110,103 7,496 15,263 218,369 59,800 ·18,749 23,495 11,283 3,942 30,393 9,665 7,473 9,483 New 42,311 9,203 1,990 2,339 2,342 4,685 4,186 2,213 2,353 1,356 3.751 4,288 705,485 115,177 156,673 58,139 53,691 271,265 68,027 47,118 75,24o 58,082 143,800 1,874,486 466 432 4,651 20,572 438 10:792 317 1,116 204 161 1,090 77'J 725,480 117,484 l6o,133 6o,685 58,537 276,541 70,678 49,937 77,375 62,265 152,739 1,937,869 428,579 233,016 263,47~ 109,265 148,367 420,296 78,896 66,749 68,994 55,508 232,397 2,34o,375 470 470 51,210 100,864 50,020 53,833 48,920 17,305 61,349 30,938 11.843 4o,654 29,54o 33,514 535,490 1,429 5,498 2,254 2,159 1,649 1,876 2,6o9 1,6ol 1,357 1~397 2,538 2,334 26~701 437,686 l,349,66o 431,464 515,436 237,563 239,957 8d6,372 196,793 14o,857 202,464162,011 449,109 5,169,377 67.5 76. 7 b,lll 68.4 73.9 1,538 1,932 930 58.4 733 81.1 2,486 64.8 737 52 .. 0 74.7 6os 769 644 73.3 1,270 17,808 FEDERAL RESEBVE NOTES OUTSTANDING .AND IN ACTUAL CIRCULATION F. P. notes outstanding F. rt, notes held by banks F. TI. notes in actual ~irculation 714,279 255,717 284,674 118,692 162,568 285,700 22,701 21,196 9,427 14,201 428,579 233,016 263,478 109,265 148,367 DISTRIBUTION OF BILLS, U. S. CERTIFICATES Within 15 days 16 to 30 days 31 to 60 days 61 Tiilla discounted 612,660 64,310 84,069 Bills bought in open market 117,289 65,124 94,220 U. s. Certificates of indebtedness 5,123 Y~aipal warrants 31 10 10 257)306 22,976 234,330 464)457 93,173 70,604 81,189 59,263 275.976 2,838,398 44,161 14,277 3,355 12,195 3,755 43,579 498,023 420,296 78,896 66,749 68,994 55,:£;8 232,397 2,34o,375 OF UIDEBTEDNESS .AND MUNICIPAL WARRANTS BY MATURITIES to 90 days rgo~ ~~ng~~s Over 6 months Total 66,514 23,269 1,329 857,151 55,119 4,66~ 336,415 . 783 8,893 524 15,323 51 . :..:-: . :FEDE3AT, RESERVE .AGENTS 1 .ACCOUNTS AT CI.OSE OF BUSINESS, DECJiMBER 26, 1923. (In thousands of dollars) Fedc;:ral R\3serve Agent at Boston New York Phila. Cleve. Rich. Atlanta Chicago St.Louis Minn. Kans.Cy. Dallas San Fran. Total n6,c4o 464,457 23,190 93,173 8,850 70,604 26,153 Gl, 1S9 308,249 25,009 bl,SOO 59,263 275~976 2,532:.393 13,052 1,262 3f ,oco 2,205 32,360 326 !=)34 7,391 114,4SO 3,525 15,290 15,500 203,062 l,bbG, 750 13,290 3,002 46,624 32,644 RES 0 u;R C E S Fade raJ Reserve notes on hand 61,050 F3de:>"cl R:sorve notes outstanding 257,306 Colla;;eral security for Federal Reserve notes outstanding: 35,}00 Geld and gold csrt ificates Go:d :r-:;d;;mption fun:! 17' 669 11& ,000 Gold fund- F. R. Board Elici':lle paper 86,,.;37 .Ai11ount :required 26,39s Excess amount held 286,460 40,200 43,320 25,330 68,317 714,279 255,717 234,674 116,692 162,56b 8,730 235,531 14,000 14,s6o 14,6ol 27,143 346,000 153,32>9 201,000 105,605 15g,q4o 72,963 1.694 2,40) 1,069 69,295 5,co5 79,000 6,329 37G, 644 10,130 2, 659 36,coo 60,293 47,52G *7.214 . ~.577 76,103 5.623 79,4L4 o6, 042 44,3&4 1], 713 . 57,624 728,554 1,4S] _ 2§_,_g.-'-3::::..G_4;..=2:.~.•~1~9.:.1_....:4~0;::.8.a..: 1 1~2~4"--- 623,060 1,374,953 553,528 659,&32 271,791 399,051 1,110,996 227,249 153,030194,018 ltB,573 655,943 6,893,169 TOTAL --------------------------------------------------------------------------------------------------- L I ABI L I T I E S Net amount of Federal Res.a:rve notes r::JC ::i Vc:od from COILP- trolle:r of the Currency Co1lats~al :r~ceiv0d F~ch:ral 338,856 1,000,739 295,917 327,994 144,522 230,oL5 5S0,497 116,363 79,454 1C9,342 84,272 337,77o 3,646,647 334,973 145.526 52,314 21.292 from Rasarve Bank: Gold Eligible pa;)er '?O'rP.L c. 170 '969 113,235 6c8,674 132,749 224,3G1 71,164 26J.545 74~62 107,50], 56.105 86,465 31,731 48,739 62. o:n 34,5o5 50.111 26,419 218,352 2,109,Sl4 55,£[:2 99,£515 1.136.708 623,060 1,374,558 )53,528 659,8£2 271,791 399,081 1,110,996 227,249 153,C90 194,018 169,573 655,943 6,393,163
@FedFRASER