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STATEMENT FOR THE PRESS Released f o r p u b l i c a t i o n F r i d a y morning, J a n . 1 ; not e a r l i e r . ' st. 4733 F e d e r a l Reserve Board, December y i , 1925- CHANGES IN CONDITION OF FEDERAL RESERVE BANKS DURING I 9 2 5 . During 1925 t h e p r i n c i p a l changes i n t h e c o n d i t i o n of t h e F e d e r a l r e s e r v e banks, a s r e f l e c t e d i n the s t a t e m e n t j u s t i s s u e d by t h e F e d e r a l Reserve Board, were an i n c r e a s e of $259>000,000 i n h o l d i n g s of b i l l s and s e c u r i t i e s , and a decrease of $ 2 2 5 , 0 0 0 , 0 0 0 i n c a s h r e s e r v e s due c h i e f l y t o gold e x p o r t s and t o the continued i n c r e a s e i n t h e amount of gold c e r t i f i c a t e s i n c i r c u l a t i o n . At the b e g i n n i n g of the y e a r t h e r e was a s h a r p f a l l i n g off i n h o l d i n g s of b i l l s and s e c u r i t i e s , accompanying t h e s e a s o n a l r e t u r n flow of c u r r e n c y , b r i n g i n g b i l l s and s e c u r i t i e s down to $ 9 5 ^ , 0 0 0 , 0 0 0 on J a n u a r y 21. I n t h e f o l l o w i n g month b i l l s and s e c u r i t i e s went up t o about $ 1 , 0 5 0 , 0 0 0 , 0 0 0 , where they remained w i t h some f l u c t u a t i o n s u n t i l t h e end oi J u l y . During t h e r e m a i n d e r of the y e a r i n c r e a s e d demand f o r F e d e r a l r e s e r v e bank c r e d i t , p r i n c i p a l l y to meet currency r e q u i r e m e n t s , g r a d u a l l y b r o u g h t h o l d i n g s of b i l l s and s e c u r i t i e s up t o $1,500,000,000 a t t h e end of t h e y e a r , as compared w i t h $ 1 , 2 5 0 , 0 0 0 , 0 0 0 a t t h e end of 1924. Holdings of d i s c o u n t e d b i l l s reached a low p o i n t oi $200,000,000 i n J a n u a r y , followed by a s h a r p i n c r e a s e t o over $400,000,LOO the f o l l o w i n g month, and f l u c t u a t e d around t h i s l e v e l u n t i l J u n e . A p r a c t i c a l l y steady i n c r e a s e s i n c e t h e n brought d i s c o u n t h o l d i n g s up t o $750,000,000 on December 3^* T h i s i n c r e a s e in d i s c o u n t s was, however, p a r t l y o f f s e t by the r e d u c t i o n i n h o l d i n g s of United S t a t e s s e c u r i t i e s , which d e c l i n e d $230,000,000 d u r i n g the f i r s t h a l f of the year t o $ 3 1 0 , 0 0 0 , 0 0 0 , and s i n c e t h e n have b e e n somewhat above t h i s l e v e l , amounting t o $ 3 8 0 , 0 0 0 , 0 0 0 a t the end of t h e y e a r . Open-market a c c e p t a n c e h o l d i n g s went down g r a d u a l l y f r o m $39^,000,000 a t the b e g i n n i n g of t h e y e a r t o a low p o i n t of $ 2 0 0 , 0 0 0 , 0 0 0 i n August, but i n c r e a s e d p u r c h a s e s t h e r e a f t e r , u s u a l a t t h a t time of t h e y e a r , brought them up t o $360,000,000 on December J>0, or s l i g h t l y under t h e amount h e l d a t the end of l a s t y e a r . F e d e r a l r e s e r v e n o t e c i r c u l a t i o n went down $180,000,000 i n J a n u a r y to $ 1 , 6 2 0 , 0 0 0 , 0 0 0 . The f o l l o w i n g month i t i n c r e a s e d t o $ 1 , 7 3 0 , 0 0 0 , 0 0 0 , but g r a d u a l r e d u c t i o n s d u r i n g the f i v e months f o l l o w i n g b r o u g h t i t down to a low p o i n t of $ 1 , 6 0 0 , 0 0 0 , 0 0 0 a t t h e end of J u l y . Between t h a t time and December 23 t h e r e p o r t d a t e immediately p r e c e d i n g C h r i s t m a s , the c i r c u l a t i o n of F e d e r a l r e s e r v e n o t e s went up $300,000,000, d e c l i n i n g t h e f o l l o w i n g week, ^ however, t o $ 1 , 8 3 5 , 0 0 0 , 0 0 0 , t h i s amount r e p r e s e n t i n g a r e d u c t i o n of $30,000,000 from t h e amount i n c i r c u l a t i o n a t t h e b e g i n n i n g of t h e y e a r . Changes i n ^ currency demand d u r i n g the y e a r a r e a l s o p a r t l y r e f l e c t e d i n t h e d e c l i n e i n cash r e s e r v e s of t h e F e d e r a l r e s e r v e banks. During t h e e a r l y p a r t of the y e a r the d e c l i n e i n r e s e r v e s was due t o the withdrawal of gold f o r e x p o r t , b u t b e g i n n i n g w i t h June the payment of a d d i t i o n a l gold c e r t i f i c a t e s i n t o c i r c u l a t i o n brought about a s u b s t a n t i a l r e d u c t i o n i n t h e cash r e s e r v e s of t h e F e d e r a l r e serve banks, w i t h the r e s u l t t h a t the amount r e p o r t e d on December 30, _ $2,820,000,000, i s $225,000,000 l e s s t h a n t h e amount h e l d a t t h e b e g i n n i n g 01 the y e a r . Member bank r e s e r v e b a l a n c e s , which reached a h i g h l e v e l of $ 2 , 2 6 0 , 0 0 0 , 0 0 0 i n 1924 d e c l i n e d over $ 1 0 0 , 0 0 0 , 0 0 0 d u r i n g the f i r s t t h r e e months of 1925 a s a consequence of t h e f a l l i n g off i n n e t demand d e p o s i t s of member banks, and averaged about $ 2 , 1 3 0 , 0 0 0 , 0 0 0 t h e next two months. Since J u n e , demand d e p o s i t s of member banks have b e e n i n c r e a s i n g and r e s e r v e b a l a n c e s have gone up a s a consequence, r e a c h i n g a h i g h f i g u r e of $ 2 , 3 1 0 , 0 0 0 , 0 0 0 on December 3 O . C. Released f o r p u b l i c a t i o n F r i d a y morning, January 1 , 192b, not e a r l i e r . St. 4783a. RESOURCES ANT' L I A B I L I T I E S OF THE TWELVE FEDERAL RESERVE BANKS COMBINED ( i n t h o u s a n d s cf d o l l a r s ) Dec. 3 0 . 1925 Dec. 2 3 . 1 9 2 5 Dec. R E S O U R C E S Gold w i t h F e d e r a l r e s e r v e a g e n t s . . . . . Gold r e d e m p t i o n f u n d w i t h U . S . T r e a s u r y . Gold h e l d e x c l u s i v e l y a g a i n s t I . R . n o t e s Gold s e t t l e m e n t f u n d w i t n I . R. B o a r d Gold a n d g o l d c e r t i f i c a t e s h e l d by b a n k s 1,356,607 5 2 , 6§ 9 9 1,327,438 49>343 31. 1924 1,702,306 41,245 1,409,306 1,370,781 1,743,551 701,455 593,520 729,256 559,259 679,4d4 513,318 2,704,231 c,605,296 2,936,533 117,852 91,983 110,521 2,822,133 2 , 7 5 7 , 279 3,047,054 b2,053 42,783 62,567 4bb,014 283,658 441,479 322,644 186,640 127,288 . . . . 749,672 764,123 314,128 B i l l s bought in open market . . . . . U. S. G o v e r n m e n t s e c u r i t i e s : Bonds Treasury notes 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 362,818 369,951 387,100 58,854 192,077 65,839 190,037 75,265 349,354 115,541 377,032 3,205 359,507 540,160 Total geld r e s e r v e s . Reserves other than gold Total reserve^ Non-reserve casn Bills discounted: S e c . by U. S . G o v e r n m e n t o b l i g a t i o n s Other b i l l s discounted Total b i l l s Total U.S. discounted Government securities 3,205 2,050 1,500,827 1,505,086 1,249,438 642 717,599 61,632 18,272 766,088 6l,629 18,006 '642 641 656,197 57,592 22,885 5,183,158 5,151,513 5,096,380 i,835,oio 1 , 8 9 5 , o°3 1,362,062 2,308,614 15,067 12,014 21,446 2,219,373 29,120 7,956 19,166 2,220,436 Total d e p o s i t s . . . 2,357,141 2,275,615 Deferred a v a i l a b i l i t y items Capital paid in Surplus All o t h e r l i a b i l i t i e s . . . 117,042 217,837 20,447 116,978 217,837 20,157 554,716 112,038 217,837 9,059 5,183,155 5,151,513 5,096,380 Other s e c u r i t i e s Foreign loans on f o l d Total b i l l s and s e c u r i t i e s 8,100 Due f r o m f o r e i g n b a n k s Uncollected items . . Bank, p r e m i s e s All other resources . . TOTAL RESOURCES . . 8,300 6,000 L I A B I L I T I E S F . R. n o t e s in actual circulation Deposits: Member b a n k - r e s e r v e a c c o u n t Government , F o r e i g n oank Other deposits . TOTAL L I A B I L I T I E S . 635,681 . . 625,263 51,197 18,734 20,301 2,310,068 R a t i o of t o t a l r e s e r v e s t o d e p o s i t a n d F , R. n o t e s l i a b i l i t i e s c o m b i n e d . . 67.3$ 66.1$ 73* o £ C o n t i n g e n t l i a b i l i t y on b i l l s p u r c h a s e for foreign correspondents . . . . . 65,049 52,739 42,683 c. RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS ON DECEMBER 30, 1925. (I R E S O U R C E S Boston s s s ~ ^old h e l d e x c l u s i v e l y a g a i n s t Gold s e t t l e m e n t f u n d w i t h F.R.Board Gold and gold, c e r t i f i c a t e s IcM-.50ld_res H ves R e s e r v e s o t h e r t n a n gold ^tal_££se£ve£ Non-reserve cash B i l l s discounted : Secured by U.S.Govt, o b l i g a t i o n s Ctner b i l l s discounted TotaLbjil_s^is_c_gmted B i l l s bought i n open market u. S. Government s e c u r i t i e s : B o n d s 84,905 37,751 4£,9_C8 165,604 New York Phila. Clave. " th Rich. ° USande ° f A t l a n t a Chicago S t . L o u i s ^ : 338,443 9^,738 18,7^8 47,012 212,572 296,694 7,011 2,962 69,iW % ra'WW ' —— 34^40 593^20 51,944 5,526 1,453 2,829 2,704 3,767 62,053 769 4 , 0 4 2 2,776 11,897 3,545 15,939 1,724 2,137 8,594 21,370 466 0]4 283,658 968,813 217,298 3°5,l63 5,542 17,395 1,527 4,331 5,048 4,171 9,533 3,353 24,326 31,2b9 254,469 40,506 37,386 20.726 33,556 16,893 32,624 4,754 24,372 49,014 70,763 8,738 11,583 58,112 68,940 49,517 29,126 1 1 9 , 7 7 7 20,321 55.-59 5 294,97 5 81,381 37,090 15,345 4,999 2,71b 553 8,103 8,691 27,420 22,186 18,763 1,079 20,190 1,746 14,716 7,885 7,665 76,045 19,615 1,240 3,511 4,193 9,773 7,005 19,430 13,745 T o t a l J J . S , Gov't s e c u r i t i e s Other s e c u r i t i e s F o r e i g n l o a n s on gold 12,320 599 60,934 2,187 24,063 3,050 753 36,409 867 8,944 17,857 429 332 53,365 1,118 l o t a L A i l ^ % and s e c u r i t i e s 150,39 5 68,784 4,190 71 39 5,186 1 0 1 , 3 2 3 111,215 6l,606 642 1 6 3 , 4 2 7 65,736 68,263 70,238 17,294 1,385 7,681 2,446 3,573 134 1,038 382 387,403 11^24 '94,341 185,173 1,566,330 3,903 84,706 2,147 8,469 35,384 6^20 52,887 10,368 4,72b 604 4,016 19,443 10,809 26,075 1,869 4^,463 11,582 C. Total ^ 19,569 414,555 Minn. Eans.Cy. D a l l a s San F r a n . 2^87327X704!"2Sl" 4,278 6,763 117,852 106,077 126,771 321,491 63,255 86,853 98,619 57,470 285,150 2,822,133 95,739 1 1 9 , 9 2 3 304,696 6,288 6,848 1 6 , 7 9 5 2,027 10,240 TOTAL RESOURCES 4783b 343,746 141,688 193,716 70,861 92,698 120,460 16,773 59,497 58,020 25,661 201,231 1,409,306 260,549 5 2 , 1 3 6 55,966 21,917 24,263 115,09b 25,305 18 889 32,418 14 Qro 42 1^6 701 4<5S Treasury notes 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 Due f r o m f o r e i g n banks U n c o l l e c t e d items oa.ii p r e m i s e s Ail otner resources St d 0 U a r s ) 24,347 373 123,360 201,680 67,227 36,125 2,791 2,732 83,939 8,099 2,046 „ 35,502 4,602 341 3,861 29,964 16,816 28,617 31,440 8,387 6,950 17,236 465 28,761 749,672" 362,818 58,854 7,094 4,319 18,415 10,645 19,078 55 267 37,447 iQO 324 31,830 284 4l,70S 13,839 3,070 2,601 70,626 6 4 , 5 9 2 111,909 1 , 5 0 0 , 8 2 7 _ _ ^42 26,743 4 0 , 4 6 2 717,599 1,835 3,356 61,632 1,190 3,550 1 8 , 2 7 2 „ 44,241 4,883 6l4 7,644 497,691 245,797 295,950 626,788 174,580 149,524 2a,812 154,534 20,709 49,938 567 448,194 192,077 126,101 377,032 7 205 8^100 5,183,15s- RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS ON DECEMBER ] 0 , 1925. S t . 4723c ( I n thousands of d o l l a r s ) Boston New York P h i l a . CIeve. Rich, A t l a n t a Chicago St.Louis Minn. Hans.Cy. Dallas San Fran. Total F. R. n o t e s in a c t u a l c i r c u l a t i o n 384,682 156,439 234,403 93,482 1 69,9 82 1 79,712 40,302 7 0 , 0 6 7 7 4 , 1 5 5 47,462 205,334 1,835,010 175,990 Deposits: 144,070 9 3 2 , 2 7 4 1 3 5 , 5 4 5 1 6 5 , 2 0 0 68,325 82,476 324,211 81,166 5 4 , 2 1 3 92,028 63,354 165,692 2,308,614 Member bank - r e s e r v e account 1,05S 2,226 1,253 l,lol 1,067 1 , 0 8 3 1 , 5 1 4 1 , 7 3 0 15,067 1,312 1,283 798 Government 577 346 691 12,014 405 4,807 91s 1,056 454 1,362 326 F o r e i g n bank 523 395 59 5,929 21,446 S91 1 , 3 2 7 285 Other d e p o s i t s 236 278 9,135 506 1,574 1,133 93 Total d e p o s i t s 146,095 948,442 138,227 1 6 3 , 9 9 1 7 0 , 4 6 9 8 3 , 7 7 2 3 2 7 , 0 4 1 8 4 , 2 5 9 5 5 , 5 9 1 94,639 65,273 1 7 4 , 0 4 2 2,357,141 66,054 1 3 7 , 5 0 9 60,1a 5 6 , 5 9 0 6 3 , 0 3 3 26,956 7 1 , 3 3 3 ^ 4 , 0 6 6 1 1 , 7 3 6 3 8 , 9 1 4 28,727 4 0 , 6 4 2 635,68! Deferred a v a i l a b i l i t y items C a p i t a l paid i n 8,611 32,207 11,623 1 3 , 1 7 6 5 , 9 8 5 4 , 6 5 7 1 5 , 7 3 1 " 5 , 1 2 7 3 , 1 8 3 4 , 2 3 7 4,267 8,232 1 1 7 , 0 4 2 Surplus 22,462 11,701 217,837 16,382 8 , 9 5 0 30,426 7,592 15,071 58,749 20,059 9,971 7,497 8,977 20,447 All o t h e r l i a b i l i t i e s 1,150 890 1,213 1,867 2,069 1,127 1,423 1,633 2,545 855 934 AJ41 L I A B I L I T I E S 414,555 TOTAL LIABILITIES Reserve r a t i o (per c e n t ) 57.5 Contingent l i a b i l i t y on b i l l s p u r 4,521 chased f o r f o r e i g n c o r r e s p o n d e n t s F.R. notes on hand ( n o t e s r e c ' d from F.R.Agent l e s s notes i n c i r c u l a t i o n ) 35,282 F , R . n o t e s r e c ' d from Comptroller F . R . n o t e s held by F. R. Agent F . R . n o t e s issued to F.R. Bank C o l l a t e r a l held a s s e c u r i t y f o r F . R . n o t e s issued t o F*R.Bank: Gold and geld c e r t i f i c a t e s Gold redemption fund Gold f u n d - F. R. Board E l i g i b l e paper Total c o l l a t e r a l B i l l s discounted B i l l s bought i n open market C e r t i f i c a t e s of indebtedness w a r r a n t s Municipal C. 257,122 45,850 211,272 35,300 1,560,330 72.7 387,403 73.7 497,691 2 4 5 , 7 9 7 295,950 626,788 174,580 149,524 221,812 1 5 4 , 5 3 4 448,194 5,183,158 51.0 74.6 69.O 58.4 67.3 50.0 63.4 50.8 75-6 64.7 2,444 2,138 4,277 65,049 10,838 FEDERAL RESERVE NOTE ACCOUNTS OF FEDERAL RESERVE AGENTS 747,bb2 224,345 300,863 133,407 232,435 432,730 69,165 88,941 121,523 _2]&560 29,000 37,820 23,289 40,020 232,457 22,580 15,375 36,53_0 7,311 47,561 368,370 20,279 130,420 5,682 6,537 3,238 2,505 8,431 38,906 28,640 16,636 22,433 20,561 515,102 195,345 263,043 110,118 192,415 200,273 186,b9S 2,000 2,210 6,283 46,585 1,587 3,499 73,56b 84,993 66,285 305,995 11,512 50,100 54,773 255,895 2,980,473 777,093 2,203,380 14,926 302,231 4,647 3,361 1 4 , 4 5 2 112,443 5,000 182,939 941,933 44,500 70,900 110,645 4,200 42,000 50,360 47,849 105,136 146,926 42,477 21,94s 32,697 32,464 61,300 1,060,70s 266,536 116,51s 192,501 261,609 58,302 79,368 8 7 , 7 0 4 5 5 , 7 5 1 258,691 2,417,315 8,780 19,135 25,000 136,976 27 , 298 1 2 , 3 2 9 1 4 , 0 3 1 116,000 120,389 170,000 298,535 60,675 73,725 216,411 628,531 195,393 a,160 3,009 10,370 6,095 4,038 9,945 1,680 13,052 2,368 DISTRIBUTION OF BILLS, MUNICIPAL WARRANTS AND U. S. CERTIFICATES OF INDEBTEDNESS BY MATURITIES From 91 days Total Over 6 months Within 15 days 16 to 30 days 31 to 60 days 6l to 90 days to 6 months 616,325 35,816 10,467 48 4 53,152 33,428 749,672 123,664 77,801 11,688 85,094 64,571 362,218 1,105 126,101 115,521 9,475 10- 45 55
@FedFRASER