Annual Report of the Federal Reserve Board, 1919

SIXTH ANNUAL REPORT OF THE FEDERAL RESERVE BOARD COVERING OPERATIONS FOR THE YEAR 1919 WASHINGTON GOVERNMENT PRINTING OFFICE 1920 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. Page. PART I.—Report of the Federal Reserve Board, with exhibits 1-296 PART II.—Report of Federal Reserve Agents to the Federal Reserve Board. 297-508 PART III.—Recommendations of the Federal Advisory Council to the Federal Reserve Board for year 1919 511-532 PART I. Text of report: Introductory review 1 Interbank purchases of acceptances and rediscount operations 5 Discount rates approved by the Board 8 Movement of principal assets and liabilities of all Federal Reserve Banks during the year 1919 12 Condition during 1919 of member banks in principal cities 17 Acceptances 21 Imports and exports 23 Fiscal agency operations 25 Membership of State bankB and trust companies 28 Rates of earnings of Federal Reserve Banks, by classes of assets 31 Distribution of earning assets at the opening and close of the year 32 Earnings and expenses of the Federal Reserve Banks 34 Permanent buildings for Federal Reserve Banks 37 Branches of Federal Reserve Banks and their operations 38 Federal Reserve clearing and collecting system 40 Gold settlement fund 44 Federal Reserve bank notes 46 Regulation and control of foreign exchange 47 Exports of coin, bullion, and currency 50 Foreign branches of American banks 53 Meetings of the Federal Advisory Council 56 Law division 56 Amendments to the Federal Reserve Act 58 Fiduciary powers granted to national banks 62 Board's organization, staff, and expenditures 62 Permanent quarters for Board and its staff 63 Recommended amendment to act, permitting national banks to establish branches 64 Federal Reserve notes and credit expansion 65 Discount policy and credit control 67 EXHIBITS. Exhibit A—Discount rates 76 Exhibit B—Federal Reserve notes 80 Exhibit C—Statement of condition of Federal Reserve Banks 112 Exhibit D—Investment operations of Federal Reserve Banks 157 Exhibit E—Gold settlement fund 212 Exhibit F—Operations of the Federal Reserve clearing system 222 in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

IV CONTENTS. Page. Exhibit G—Earnings and expenses of the Federal Reserve Banks 229 Exhibit H—Receipts and disbursements of the Federal Reserve Board 236 Exhibit I—State banks and trust companies admitted to membership 239 Exhibit J—Foreign branches authorized 260 Exhibit K—Fiduciary powers granted to national banks 260 Exhibit L—Banks granted authority to accept up to 100 per cent of capital and surplus 269 Exhibit M—Personnel and salaries: Salaries of officers and employees of Federal Reserve Banks... 274 Salaries of officers and employees of Federal Reserve Board... 277 Salaries of bank examiners 279 Exhibit N—Directory of the Federal Reserve Board and Federal Reserve Banks 282 Exhibit O—Federal Advisory Council 288 Exhibit P—Amendments to the Federal Reserve Act 289 CHARTS. Movement of earning assets of all Federal Reserve Banks during calendar year 1919 120 Net deposit liabilities, Federal Reserve note circulation, cash reserves, and reserve ratio of all Federal Reserve Banks during calendar year 1919 124 Required and excess reserves: (1) Gold reserves required against Federal Reserve notes in circulation... 125 (2) Cash reserves required against Federal Reserve note and net deposit liabilities combined 125 (3) Total cash reserves held by Federal Reserve Banks 125 Average daily holdings of each class of earning assets by Federal Reserve Banks : During calendar year 1918 134 During calendar year 1919 135 Operations through gold settlement fund, by weeks, during calendar year 1919.. 216 Operations of the New York Federal Reserve Bank through gold settlement fund, by weeks, during calendar year 1919 217 Number of banks on par list, also average daily number and amount of items handled by Federal Reserve Banks, 1917-1919 226 PART II. Reports of Federal Reserve Agents to the Federal Reserve Board 297-508 District No. 1—Boston 299 District No. 2—New York 317 District No. 3—Philadelphia 333 District No. 4—Cleveland 351 District No. 5—Richmond 367 District No. 6—Atlanta 383 District No. 7—Chicago 403 District No. 8—St. Louis 423 District No. 9—Minneapolis 439 District No. 10—Kansas City 457 District No. 11—Dallas 473 District No. 12—San Francisco 491 PART III. Recommendations of the Federal Advisory Council, 1919 511 Description of Federal Reserve districts 533 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PART I. REPORT OF THE FEDERAL RESERVE BOARD, WITH EXHIBITS. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE FEDERAL RESERVE BOARD. 1919. CARTER GLASS, ex officio. i W. P. G. HARDING, Governor. Secretary of the Treasury, Chairman. | ALBERT STRAUSS, Vice Governor. JOHN SKELTON WILLIAMS, ex officio, A. C. MILLER. Comptroller of the Currency. CHARLES S. HAMLIN. ! HENRY A. MOEHLENPAH. VI Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BOARD, Washington, February 2, 1920. SIR: The Sixth Annual Report of the Federal Reserve Board covering operations for the calendar year ended December 31, 1919, is submitted herewith. INTRODUCTORY REVIEW. The past year has witnessed the return and demobilization of troops, the readjustment of commercial and industrial activities to a peace basis, and the removal of most of the war-time restrictions. It has, moreover, been a year marked by industrial unrest, by economic confusion, by reduced production, increased domestic consumption, high prices, and unprecedented extravagance. In the exercise of its functions, the Federal Reserve Board has been confronted with problems of peculiar difficulty, not admitting of treatment either by methods necessary or permissible in time of war, nor by recourse to means which would naturally suggest themselves under normal economic conditions. A consideration of these problems makes necessary a brief review of the financial exigencies of the war and of the manner in which they were met. It must be remembered at the outset that war financing necessarily involves credit expansion unless private consumption is curtailed at a rate commensurate with the increase of Government requirements. Such curtailment is at best a gradual process; with us it had been brought under a gratifying degree of control when the armistice was signed. The War Industries Board through priority orders and price fixing, and the Food and Fuel Administrations by rationing, voluntary cooperation, and price fixing had limited consumption, and as a consequence expenditure; and these limitations, had the war continued, wrould have shown striking results in our ability to place further Liberty bond issues with investors. To the extent, however, that what was accomplished in saving fell short of actual requirements, there was a margin of bonds that could not be paid for immediately out of savings and which it became necessary for the banks to carry, either directly or indirectly through loans to purchasers. This expansion of bank loans must be kept in mind in order to understand the situation. Failure to understand it leads to the impression held by many that Liberty bonds could all have been sold to investors had they borne a higher interest rate. No rate within reason could have accomplished this end, as the investl Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. ment funds to absorb these enormous issues in their entirety simply did not exist and their growth could not have been induced to an adequate degree by higher rates. In order that the member banks might carry the burden of undigested Government securities they were obliged to rediscount with Federal Reserve Banks, and in order that such rediscounting should not involve them in heavy loss it was essential that as long as the banks were lending to bond subscribers at coupon rates the rediscount rate should be related to the bond rate. The rediscount rates of Federal Reserve Banks, therefore, instead of being higher than the market rates, as in theory and in normal practice they should have been, were made lower than the market rates. This circumstance is enough to prevent a normal functioning of a Federal Reserve Bank, whose rates should be so fixed that resort thereto is unprofitable to the borrowing institution and thus has a tendency to check expansion. The remedy for this condition is the absorption by investors of the undigested securities. This process could not be accelerated, as in normal times, by sharp declines in value, as the large volume to be digested precluded that possibility. Absorption can be brought about only by time and saving; and it often happens that a rising price causes better absorption than a falling quotation. A consideration of these facts makes it clear that abnormalities were imposed on the banking system by the war and that a restoration of normal conditions must be brought about through the gradual elimination of wTar paper from the banks. It was necessary to cooperate with the Treasury in every way to facilitate first .the sale of Government securities and then their absorption by investors. For the full understanding of the Treasury's position as the most important factor in the money market, it is necessary to touch briefly on its issues of certificates of indebtedness. The principal issues of such certificates were loan issues and tax issues. On May 5, 1919, there were outstanding $6,467,525,000 of certificates, which was the maximum at any time outstanding. On December 31, 1919, there were outstanding $3,262,184,500; at the date of this report there were outstanding but $3,124,757,500, whereof about $550,000,000 mature March 15 and will be paid off out of tax receipts due that day. It will be seen that there has thus been a very substantial reduction of the floating debt represented by the certificates of indebtedness. Certificates now outstanding mature on March 15, June 15, September 15, and December 15, 1920, these being the dates on which taxes become payable and they will then be paid off out of tax receipts. It is estimated that receipts from income and excess profits taxes payable during the calendar year 1920 will be more than ample to redeem all tax certificates outstanding at present, and that a portion of these taxes will be available to cover current Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 6 expenditures. The amount by which other current receipts fall short of meeting current expenditures may then be covered by further issues of tax certificates maturing on tax dates in 1921. Such issues will, it is estimated, be for amounts appreciably smaller than the issues now outstanding. The volume of certificates being steadily reduced, the new issues of certificates should be readily absorbed. It is estimated that over 60 per cent of present tax issues are held by taxpayers and investors and only 40 per cent by the banks. Distribution of the certificates has been effected through the Federal Reserve Banks, with the cooperation of the member banks—a vast organization which can not be duplicated—the member banks buying the certificates in the first instance and then gradually selling them to their costumers. This could not have been accomplished if member banks had not had the assurance that their investments in certificates pending distribution could, if necessary, be carried in Federal Reserve Banks without loss. In making rates for rediscounting loans on Government securities the policy was to avoid loss to the banks, which were necessarily the distributing media. As Treasury operations became gradually a less determining factor in the money market, the situation as to commodity prices became more important. The purchasing power of the public growing out of high wrages and large profits is greater than it has ever been before; and this purchasing power, competing with export demands arising out of the necessities of Europe, has raised prices to a point that takes no account of prudence. Every element of increased cost is added to price, and there is, therefore, no incentive to manufacturers to produce cheaply or to hold back because of any element of cost, whether of credit, labor, or material, as they can always sell their output at a profit. There is practically unlimited demand for credit not only for the manufacture and distribution of goods, but also for speculation in commodities and in the securities representing ownership of the industries producing those commodities and which profit by their production and sale. From the facts set forth above, it is evident that an advance in discount rates while the Government had an unwieldy floating debt and Liberty bonds were still largely unabsorbed would have added to the difficulties of Government financing. While regulation and control of credit have been as desirable since the war restrictions were removed as before, the Board was convinced that to attempt this control through premature adjustments of rates would be so detrimental to the Treasury's position as to offset, if not prevent entirely, the results sought. Early in December, howTever, after the program of the Treasury for the adjustment of the floating debt had advanced to a stage where it could no longer be seriously affected by the adoption of a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. more normal banking policy, the Board notified the Federal Reserve Banks that it was ready to consider their suggestions for rate changes, and that it would approve an advance in the rates for paper secured by Government obligations other than Treasury certificates of indebtedness. As the highest rate borne at that time by the certificates was 4J per cent and as they were held largely by banks, the Board felt that in view of all the circumstances the existing rate on notes secured by Treasury certificates as collateral should be maintained for a limited time. The Treasury, however, on December 29, announced that it would offer on January 2, 1920, certificates bearing interest at the rate of 4f per cent payable on December 15, 1920, and the Board thereupon took steps to advance the rate on notes secured by Treasury certificates to 4f per cent. At the close of the year, at a majority of the Federal Reserve Banks, rates on paper secured by Government obligations of every kind had been advanced to the same level as the rates then ruling for commercial paper, while the other Federal Reserve Banks announced their readiness to comply with the Board's wishes as soon as meetings of their directors could be held. No advance in the discount rate on commercial paper had been made up to December 31, chiefly because it was deemed desirable to ascertain to what extent the seasonal licjuidation, beginning usually in January, would proceed without the added stimulus of higher rates and partly, too, because at some of the most important financial centers rates of interest on bank balances were based on the 90-day discount rate of the Federal Reserve Bank, and were subject to an automatic increase should that rate be advanced. Such increase might easily lead to a disturbing scramble for deposits. While there is no obligation on the part of either the Board or the Federal Reserve Banks to consider interest rates allowed by commercial banks on deposits in establishing discount rates, it was the Board's view that this fact should be understood by the banking community, and that the banks in the centers affected should be given an opportunity in anticipation of future rate changes to modify their rules. Accordingly, on December 29, the Board invited clearing-house associations to send representatives to a conference to be held in Washington on January 6, 1920, for a discussion of the matter. It was the Board's conviction, however, at the close of the year, that a substantial advance in all discount rates was necessary and that it should not be long delayed. The act of September 7, 1916, amended section 13 of the Federal Reserve Act by providing that "any Federal reserve bank may make advances to its member banks on their promissory notes for a period not exceeding 15 days at rates to be established by such Federal Reserve Bank, subject to the review and determination of the Federal Reserve Board, provided such promissory notes are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 5 secured by such notes, drafts, bills of exchange, or bankers' acceptances as are eligible for rediscount, or for purchase by Federal reserve banks under the provisions of this act, or by the deposit or pledge of bonds or notes of the United States." Until recently it has been the policy of the Federal Keserve Banks to establish, and of the Federal Reserve Board to approve, preferential rates for paper, including member banks' collateral notes, maturing within 15 days, and a very large proportion of the invested assets of the Federal Reserve Banks have been represented bjr paper of this class. This amendment was suggested by the Board at a time wrhen borrowings by member banks were very small, and when much of the limited demand wras for a short period only. Banks having occasion to use funds for a few days found frequently that eligible paper in their portfolios had a longer time to run than the period covering their requirements, and the result was either that no offering was made or that the loans were taken up before maturity with request for rebates. During the period when the success of offerings of Government bonds and of Treasury certificates depended so largely upon the cooperation of the banks the ability of member banks to discount at preferential rates at Federal Reserve Banks their short-time notes secured by Government obligations proved of great value, but now that Treasury financing is no longer the paramount factor in the money market it is the view of the Board that there should be no preferential rates given to member banks' collateral notes. INTERBANK PURCHASES OF ACCEPTANCES AND REDISCOUNT OPERA- TIONS. The rediscoxmting between Federal Reserve Banks of bills purchased and of discounted paper has been continuous throughout the year, due both to the movement of funds in connection with fiscal operations of the Treasury and also to seasonal requirements for the movement of crops and the purchase of raw materials by industries. The Board has carried out its policy of equalizing as far as practicable the reserve position of the several Federal Reserve Banks. All rediscount transactions and sales between Federal Reserve Banks have been arranged by the Board under authority of section 11 of the Federal Reserve Act, which provides that a Federal Reserve Bank may be permitted or, upon the affirmative vote of at least five members of the Federal Reserve Board, required to rediscount the discounted paper of another Federal Reserve Bank at rates of interest fixed by the Federal Reserve Board. There has, however, been such a spontaneous spirit of cooperation between the Federal Reserve Banks that all transactions suggested by the Federal Reserve Board have been made voluntarily, and in no case has the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6 AXNTJAL BEPORT OF THE FEDERAL RESERVE BOARD. Board found it necessary to exercise its statutory power to require such operations. By means of the Federal Reserve leased-wire system rediscount transactions have been consummated almost instantaneously. All payments have been made on the day the transactions were completed by direct transfers through the gold settlement fund, through book entries at the banks and at the office of the Board, without involving any physical transfer of gold. There has been during the year a continuous increase in the amount of open-market purchases of acceptances made chiefly h}r the Federal Reserve Banks located in New York and Boston, which cities are the principal acceptance markets. The Federal Reserve Banks of Cleveland, Chicago, Minneapolis, Kansas City, and San Francisco have participated daily in the open-market purchases of the Federal Reserve Bank of New York under an agreement approved by the Federal Reserve Board. Other Federal Reserve Banks have undertaken to care for acceptances originating in their own districts which have been sold in the New York market. The total purchases of acceptances by the Federal Reserve Bank of New York amounted to $1,950,898,000, of which $739,499,000 were immediately allotted in the amounts indicated to the Federal Reserve Banks in the cities named below: Cleveland $179, 592, 000 Chicago 160,173, 000 St. Louis 500, 000 Minneapolis 88, 696, 000 Kansas City 22, 461, 000 San Francisco .• 288, 077, 000 The growth of the acceptance business and the great increase in the volume of acceptances purchased by Federal Reserve Banks are indicated in the following table. Acceptances bought by Federal Reserve Banks. [In thousands of dollars.] Bought from other Federal Bought in open market. Reserve Banks. Federal Reserve Bank. 1915 1916 1917 1918 1919 1917 1918 1919 Boston 14,105 52,377 86,481 194,158 360,784 5,047 6,709 New York 25,834 123,406 445,307 945,498 1,211,399 19, 659 50,182 15,827 Philadelphia 7,565 53,122 70,710 77, 686 14,049 15,204 42,321 Cleveland . 2.963 27,542 51,007 122,800 261,750 40,102 54,199 55,300 Richmond 250 11,313 54,759 70,766 52,977 3,367 331 5,080 Atlanta 72 12,544 25,388 45,477 51,661 1,005 2,514 5,065 Chicago 5,782 27,061 61,142 122,787 292,012 5,572 100,077 95,477 St. Louis . 1,801 20,681 22,788 26,096 87,503 6,944 4,551 40,320 Minneapolis 1,455 13,539 16,397 13,903 108,714 16,675 25,911 19,282 Kansas Citv 1,788 8,191 17,561 14,691 26,086 9,264 19,047 45,099 Dallas ... 3,543 9,743 25,024 12,415 25,333 8,242 10,077 San Francisco 3,230 32,776 48,018 150,653 345,827 20,249 22,506 133,050 Total 64,845 386,095 909,301 1,809,539 2,825,177 168,411 336,590 424,577 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 7 In order to maintain an open market for bankers' acceptances the Federal Reserve Banks of Boston and New York have been called upon constantly to make very heavy purchases, and it has been necessary for these banks in order to sustain their reserves to make large sales of acceptances. Other Federal Reserve Banks have had, from time to time, surplus funds and with the approval of the Federal Reserve Board have purchased bankers7 acceptances from these eastern banks. In cases where Federal Reserve Banks have of their own initiative purchased bankers' acceptances from other Federal Reserve Banks with the approval of the Board, the indorsement of the selling bank has not been given as a rule, but whenever the Board has requested a Federal Reserve Bank to rediscount bankers' acceptances for another the selling bank has been required to indorse the bills sold. The Federal Reserve Banks of Cleveland, Chicago, St. Louis, Minneapolis, and San Francisco are the only banks which have neither rediscounted nor sold paper during the past }rear. Rediscount operations between Federal Reserve Banks including straight purchases of bankers' acceptances during the }rear have amounted to $2,658,254,000, as compared with $660,638,000 during the year 1918. In addition to these transactions the Federal Reserve Bank of New York has purchased and allotted to other Federal Reserve Banks $730,866,000 of bankers' acceptances, making a total interdistrict movement of bills discounted and acceptances purchased and allotted to other Federal Reserve Banks of $3,389,120,000. The figures in detail appear in the following table: Interdistrict movement of bills discounted or purchased by Federal Reserve Banks during the period from Jan. 1 to Dec. 31, 1919. [In thousands of dollars.] Acceptances pur- Interdistrict Rediscounts and sales between Federal chased for account movement of Reserve Banks. of other Federal discounted and Reserve Banks. purchased paper. Federal Reserve Banks. Redis- Dis- Excess Excess of Amount Amount Excess Excess counted counted or of redis- discounts pur- purchased move- moveor sold purchased counts and chased for ac- ment ment by— by— and sales. purchases. by— count of— from— to— Boston 131,165 131,165 131,165 New York 312,740 55,827 256,913 739,499 996,412 Philadelphia. 8^6,521 826,521 826 521 Cleveland 284 317 284 317 179,592 463,909 Richmond 842,946 5,080 837,866 837,866 Atlanta 82,690 10,065 72,625 72 625 Chicago.. i 124 1,493,815 1.423,691 160,173 1,583,864 St. Louis 180.529 '180,529 500 181,029 Minneapolis i 78 447,895 447 817 88 696 536,513 Kansas City 56,500 50,099 6,401 22,461 16,060 Dallas 404,975 67,577 337,398 337,398 San Francisco 1515 133,050 132,535 288 077 420,612 Total 2,658,254 2,658,254 2,468,889 2,468,889 739,499 739,499 3,£01,987 3,201,987 1 Acceptances purchased in the open market through the Federal Reserve Bank of New York and returned to that bank before maturity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL EEPORT OF THE FEDERAL RESERVE BOARD. The reserve position of the 12 Federal Reserve Banks at the close of business on the last Friday of the year, December 26, and the amount of unmatured rediscounts and paper sold to other banks are shown below: Reserve position of the 12 Federal Reserve Banks, also amount of paper rediscounted with or sold to and held by other Federal Reserve Banks as at close oj business, Dec. 26, 1919. [In thousands of dollars.] Ratio of total reserves to combined net deposit and Federal Reserve note liabilities. After adjustment of reserves by deducting Bills rediscounted Bills discounted amount of bills with or sold to for or purchased rediscounted Banks. other Federal from other Fed- with or sold to Reserve Banks. eral Reserve other Federal Banks. Actual. Reserve Banks and adding amount of bills discounted for or purchased from other Federal Reserve Banks. Per cent. Per cent. Boston 69,899 44.0 24.3 New York 58,201 40.0 36.2 Philadelphia 27,615 40.8 32.7 Cleveland i2,265 46.3 49.4 Richmond 5,080 40.9 43.5 \tlanta 5,065 j 52.8 55.2 Chicago 60,090 50.6 58.8 St Louis . - 29,022 46.5 60.5 Minneapolis 39.4 39.4 Kansas City 13,000 9,S05 43.1 41.3 Dallas 32,123 49.4 77.0 San Francisco 15,265 54.9 59.3 Total 16S,715 168,715 44.8 44.8 Changes in discount rates approved by the Board for the Federal Reserve Banks were, during the first 11 months of the year, unimportant, but in order to complete the record tables, showing the changes and the dates on which they became effective are subjoined hereto. Changes in discount rates on paper secured by United States Treasury certificates of indebtedness, maturing within 15 days, including member banks'1 collateral notes. Effective— Federal Reserve Bank. ,1 .naJ .9191 Boston 1 4 New York 4 Philadelphia... 4 Cleveland 4 Richmond •I1 Atlanta 4 Chicago St Louis 4 Minneapolis 4 Kansas City Dallas 4 San Francisco 2 .rpA 9191 2 .rpA 9191 cc oT CO . .. 4 1 .... 1.... 4 4 '. .. .tpeS 9191 4 .voN 9191 Ml 141 2 *4| .voN 9191 CD 141 2 .voN 9191 *4i 1 41 2 .voN 9191 0 .... :':: l.voN 9191 341 M§ t I .... 1 41 I l.voN 9191 141 1 .ceD 9191 CO 24* 1 .ceD 9191 41 41 1 .ceD 9191 _ 1 cc" 4* 41r 4+ 1 .ceD 9191 4* 1 .ceD 9191 OJ 41 1 .ceD 9191 41 ,62 .ceD .9191 4i 3 .ceD 9191 1 Rate of 4J per cent on mper secured by 4J per cent Treasury certificates. 8 Applies only to member banks' collateral notes; no rate on customers' paper. 8 Rate of 4J per cent on member banks' collateral notes secured by 4J- per cent Treasury certificates. Digitized for F'ARpApSlieEsR o nly to member banks7 collateral notes; rate of 4J per cent on customers' paper. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. Changes in discount rates on paper secured by United States Treasury certificates of indebtedness maturing within 16 to 90 days. Effective- Federal Reserve Jan. Nov. Nov. Nov. Nov. Nov. Nov. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Bank. 1, 4, 5, 10, 17, 13, 15, 16, 17, 19, 26, 30, 1919. 1919. 1919. 1919. 1919. 1919. 1919. 1919. 1919. 1919. 1919. 919. 1919. 1919. Boston _ 14J New York 1 $ (2) 4* Philadelphia 14* 4J Cleveland 4£ 4J Richmond . i4i 4i Atlanta 41 i4i 4J Chicago A 4£ St. Louis 4i 4£ Minneapolis \ai i 4* 4J Kansas City... 4* Dallas X4£ SanjFrancisco. j 4£ X4i 4§ 1 Rate of 4i per cent on paper secured by Treasury certificates bearing interest at 4J per cent. 2 Rate discontinued. Changes in discount rates on paper secured by Liberty bonds and Victory notes maturing within 15 days, including member banks' collateral notes. Effective- Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Loin's Minneapolis Kansas City . Dallas San Francisco ] .naJ .9191 j ^ ^ 1 ^ " j - 01 OS ^oJ . OS .OS! .OS .OS .OS . OS I .OS ^oJ '"'OS 1-1 OS 1-1 OS 7-1 OS ^ OS !§ fiOS ftOS ^OS : ^OS 0 ^ ?;os 34 ^^ ^^ 0 ot p s p p ft 4 4_L 43 4 4* 4 4a 4 4f 41 42 4 4a 4 4* 41 4a 4 4* 43 4 41 43 4L 41 4f 4 24}- 41 4i 5 41 43 4 ! 1 Rate of 4 per cent on paper secured by fourth Liberty loan bonds where paper rediscounted had been taken by discounting bank at rate not exceeding coupon rate on bonds. 2 Rate applies to member banks' collateral notes; rate of 4 per cent on customers' paper. Changes in discount rates on paper secured by Liberty bonds and Victory notes maturing within 16 to 90 days. Effective- Federal Reserve Bank. Boston New York Philadelphia . Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. ,1 .naJ .9191 4i 4i 4i 4i % 4? 41 4 4i 4} 4i ,4 .voN .9191 a 4£ ,5 .voN .9191 ,6 .voN .9191 4J 4* 4* ,7 .voN .9191 cT .voN 9191 ........... 1 1 U 4* 4i 4i 44 1 .voN 9191 4| .voN 9191 4| ] .ceD 9191 CO* 4J 4i .ceD 9191 if? 4f i4f ] ,ceD 9191 4f 5 5 ] .ceD 9191 4f ] .ceD 9191 cT 4| 3 .ceD 9191 4| 1 Rate of 5 per cent for maturities 61 to 90 days. NOTE.—Rate of 4 per cent on paper secured by fourth Liberty loan bonds where paper rediscounted was taken at rate not exceeding coupon rate, established during 1918 at the following banks, was discontinued on the dates given: Boston, Feb. 15,1919; Chicago, Apr. 21,1919; Richmond, Apr. 25,1919; St. Louis, Digitized forJ uFnRe A5S, 1E91R9 ; Atlanta, July 17, 1919; Kansas City, June 19, 1919. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 AI\TIsTUAL REPORT OF THE FEDERAL RESERVE BOARD. Changes in discount rates on commercial paper maturing within 15 days, including member .hanks collateral notes secured by such paper. Effective— Federal Reserve Bank. Jan. Apr. Nov. Nov.! Nov. Nov. Nov. Nov. Dec. Dec. ! Dec. Dec. 1, 4, i 5, ! 6, /, , 10. 17, 13, 15, ! 19, 26, 1919. 1919. 1919. 1919.; 1919. j 1919. 1919. 1919. 1919. 1919. 1919. 1919. Boston 4 4a i ! New York 4 Philadelohia. . .. 4 Cleveland. i 4J Richmond < 44 • 1 1 43 4s Atlanta 4* 1 ; ! 4? Chicago.. 4 4J 41 ' 4f ! M St in L ne o a u p is olis 4 4 4 " ! \ i 41 2 4| ! i 43 4 Kansas Ci fcy ; 44 5 ' . i i . ! Dallas ! 44 5 San Francisco 4\ 44 ! 4| ! i 3 44. per cent on member banks' collateral notes. Changes in discount rates on commercial paper maturing vAthin 16 to 90 days. Effective— Effective— Federal Reserve Federal Reserve Bank. Jan. 1, Nov. 10. Dec. 26, Bank. Jan. 1, Nov. 10, Dec. 26 1919. 1919. ' 1919. 1919 1919. 1919. Boston 4f Chicago . •If New York.... 42 St. Louis 1 Philadelphia 4 i Minneapolis 14i3 1 Cleveland 4| i Kansas Citv Richmond 4f Delias 1 5 Atlanta 4} San Francisco 41 1 Rate of 5 per cent for maturities 61 to 90 days. Changes in discount rates on paper secured by War Finance Corporation bonds maturing within 90 dans. Rates on paper secured Rates on p?«per secured by War Finance Cor- by War Finance Corporation bonds estab- poration bonds estab- Federal Reserve Bank. l b i e s l h o e w d o at n 1 d a p t e e r s c g en iv t e i n n I Federal Reserve Bank. l b i e s l h o e w d a o t n 1 d p a e t r e s c e g n i t v i e n n excess of rates on com- excess of rates on commercial paper of cor- mercial paper of corresponding maturities. responding maturities. Boston Apr. 11, 1919. : Chicago Apr. 4, 1919. New York Do. ; St. Louis Do. Philadelphia Do. ; Minneapolis Do. Cleveland Apr. 4, 1919. i Kansas Citv Do. Richmond Do. ; Dallas Do. Atlanta Do. San Francisco Apr. 9, 1919. Changes in discount rates on agricultural and live-stock paper maturing within 91 to 180 days. Effective- Effective Federal Reserve Bank. Federal Reserve Bank. Jan. 1, j Nov. 10, Jan. 1, I Nov. 10, 1919. ; 1919. 1919. i 1919. Boston . Chicago.. New York.. ! St. Louis. Philadelphia Minneapolis Cleveland... , Kansas City... Richmond.. ....|| Dallas Atlanta 54, 11 San Francisco. 54, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 11 Changes in discount rates on trade acceptances maturing within 15 days. Effective- Federal Reserve Bank. Jan. Apr. Nov. Nov. Nov. Nov. Nov. Nov. Dec. ! Dec. Dec. Dec. 1, 21, 4, 7, 10, 17, 12, ; 16, 26, 30, 1919. 1919. 1919. 1919. 1919. 1919. 1919. 1919. 1919. 1 1919.1919, 1919. Boston 4 41 4J New York 1 4 4J 41 Philadelphia 4 4i 4^ Cleveland 4J 14* Richmond 4 Atlanta 4-L 4£ Chicago 4 4i 4i St. Louis 4 4J Minneapolis 41 Kansas City 4i 5 Dallas . 4l 5 San Francisco 1 4J 4f 1 Rates apply also to discounted bankers' acceptances. Changes in discount rates on trade acceptances maturing within 16 to 90 days. Effective- Federal Reserve Bank. Jan. 1, Nov. 4, Nov. 10, Nov. 17, Dec. 12, Dec. 16, Dec. 26, Dec. 30, 1919. 1919. 1919. 1919. 1919. 1919. 1919. 1919. Boston 4* 4! New York »44 24i 2 4| Philadelphia 4i Cleveland 4* Mi Richmond . .. .1 - Atlanta 4* Shicago Ct. Louis 4 Minneapolis 4* Kansas City 4| 5 Dallas 44 5 San Francisco 5 4* 1 Bankers* acceptances discounted, 4£ per cent for maturities 16 to 60 days; 4* per cent for maturities 61 to 90 days. c 2 Rate applies also to bankers' acceptances discounted. Open market rates on bankers' acceptances maturing within three months. Effective Effective Jan. 1, Jan. 1, Federal Reserve Bank. 1919— Federal Reserve Bank. 1919— minimum minimum rate. rate. Boston 4 Chicago 4 New York 4 St Louis 4 Philadelphia. . . . 4 Minneapolis. . 4 Cleveland 4 Kansas City 4 Richmond Dallas . . .. 4 Atlanta 4 San Francisco 4 NOTE.—Whenever application is made by msmber banks for renewal of 15-day paper, the Federal Reserve Banks may charge a rate not excaeding that for 90-day paper of the same class. 178983—20 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. MOVEMENT OF THE PRINCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS DURING THE YEAR 1919. During the year the activities of the Federal Reserve Banks continued in undiminishing scope and in even greater volume than heretofore. As stated in the opening paragraph of this report, the cessation of actual hostilities did not end the war work of the banks, and participation in the financial operations of the Treasury involving the flotation of the last of the popular war loans and the placing of the several issues of loan and tax certificates, continued to be an important function of the Federal Reserve Banks. The work performed by the Federal Reserve Banks during the year involved the collection, concentration, and disbursement on Government account of $15,669,000,000, of which $4,491,500,000 represents the total of the Victory loan allotted; $6,754,400,000 the combined amounts of eight series of certificates issued during the year in anticipation of the Victory loan, and of four series of the so-called loan certificates; and $4,423,000,000 the total of 11 series of certificates issued in anticipation of income and excess profits taxes due in 1919 and 1920* The reported holdings by Federal Reserve Banks of wTar paper aggregated slightly more than $1,400,000,000 at the close of the year 1918, and reached a maximum of $1,863,500,000 on May 16 1919, about the time of the flotation of the Victor}7 loan, when paper secured by Government obligations constituted 91.4 per cent of the total discounted paper of the Federal Reserve Banks. After this date there was a gradual decline to $1,383,900,000, or 84.1 per cent of their total discounted paper on September 19. Between that date and November 14 the amount of war paper held by the Federal Reserve Banks increased to $1,700,618,000, but since the latter date, as the result of rate revision during the months of November and December, the amount of such paper held by Federal Reserve Banks was reduced to $1,510,400,000, or 68.8 per cent of their total holdings of discounted paper on December 26. Of this amount $732,400,000, or 48.5 per cent were secured by Liberty bonds, $337,700,000, or 22.3 per cent by Victory notes, and $440,300,000, or 29.2 per cent by Treasury certificates. Other discounts, which aggregated $302,500,000 at the close of the year 1918, continued at a comparatively low level during the greater part of the year 1919. It was not until the latter part of September that the discounts of ordinary commercial paper began to show a material increase. On December 26 holdings of such paper amounted to $684,500,000, and constituted 31.2 per cent of the Federal Reserve Banks7 total holdings of discounted bills as against less than 18 per cent a year earlier. Acceptances held, which amounted to $303,700,000 on December 27, 1918, moved within moderate limits during the first half of the calendar year, and not until the end of June was the total amount in excess of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 13 $300,000,000. During the months of November and December the volume and amount of acceptances held by the Federal Reserve Banks increased very rapidly, and the total held by the banks on the last Friday of the year 1919 ($585,200,000) was over 21 per cent of their total bills held as compared with 15 per cent on the corresponding date of the previous year. During the year ending December 26 the Federal Reserve Banks' holdings of United States bonds decreased from $28,900,000 to $26,800,000, this amount being made up mainly of bonds purchased to secure Federal Reserve bank notes, and of 3 per cent conversion bonds, the amount of Liberty bonds held being comparatively negligible. The increase during the year of $159,194,500 in the holdings of Treasury certificates represents largely the banks7 holdings of one-year 2 per cent certificates to secure Federal Reserve bank note circulation issued to replace silver certificates and silver dollars withdrawn under the operation of the Pittman Act. The total of earning assets increased during the same period from $2,346,200,000 to $3,080,500,000, or nearly 33 per cent. During the first half of the year, while the gold embargo was still in force and also in the period between August and November, the gold reserves of the Federal Reserve Banks were increased by net importations and deposits of gold and by the purchase of German gold from the United States Grain Corporation and its transfer to the Bank of England where it is held as a special deposit available for shipment to this country at any time. These gains were practically offset, however, by gold withdrawn for foreign shipments, principally to Spain, Argentina, and the Far East, the net result being that the gold reserves held by the Federal Reserve Banks on December 26, 1919, amounted to $2,078,400,000, or $11,800,000 less than the amount held on December 27, 1918. The total cash reserves held by the Federal Reserve Banks on December 26 show a corresponding decline from $2,146,200,000 to $2,135,500,000. As compared with the moderate changes in the banks' aggregate reserves, their net deposits, because of additions to membership and in consequence of the general credit expansion, increased during the year from $1,552,900,000 to $1,704,500,000. Federal Reserve notes in circulation on the last Friday in the year 1918 amounted to $2,685,200,000. During the early months of the year 1919 there was a very appreciable contraction of the note circulation, the amount outstanding on January 31 being $2,450,729,000, on August 1 $2,506,820,000, and on September 26 $2,655,354,000. Between that date and December 26 the volume of Federal Reserve notes in circulation increased by over $400,000,000 to $3,057,646,000, the average weekly rate of increase being more than $30,000,000. There has, in addition, been an increase during the year of $143,900,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. of Federal Reserve bank notes in circulation, all of which, however, have been issued to take the place of silver certificates withdrawn from circulation and of silver dollars broken up and exported under the provisions of the act of April 23, 1918, commonly known as the Pittman Act. The peak in Federal Reserve note circulation during the year 1918 was attained on December 27 and the high point for the year 1919 was reached on December 26. From December 27, 1918, to January 31, 1919, the note issues declined by $234,515,000 and similar reduction may be expected during the opening weeks of the year 1920. The reserve position of the banks until the close of September shows but little change, the ratio of cash reserves to aggregate deposit and note liabilities during the entire period, except on July 11, continuing above 50 per cent. Substantial growth of deposit liabilities during October and November and the large note issues during the last two months, coupled with a simultaneous loss of about 70 millions in reserves, account for the considerable decline in the reserve ratio during the latter part of the year. On the l^ast Friday of 1919 the reserve ratio stood at 44.8 per cent, compared with 50.6 per cent on the corresponding date in 1918. The following table shows in detail the changes in the principal assets and liabilities of the Federal Reserve Banks, week by week, throughout the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Movement of principal assets and liabilities of all Federal Reserve Banks during the calendar year 1919. [In thousands of dollars.] Resources. Liabilities. 10 P Ratio of b o D m y b s i l s e e i p g c G n c a o a u t p o t u r w e i v e n o r e d a t n r e r n s d . - c p o O d a u t i p n h s e t e - e r r d . dis p T c a o o p u t e a n r l t . ed m i b n o B a o u r i p l k g l e e h s n t t . di b s T o c b a o u o i n u l g t l d a n s h l t t e . d P ( e It r o c 3 e ) n . t P (I e t r o c 5 e ) n . t re T s c e o a r s t v a h e l s. dep N o e s t its. cir R F a c n e e c u o d s i t l n e t u a e e r t a r v s i a l o e l n. de r R F p e to o e e c s n d e s a s o n e r i s e t t v r e h e r v e a t a e s l nd c l i i n R r F a c o B e e b u n t d s a i e l e e l e a n s i t r r t t k v i a i y o n e l . n, s g liabilities combined. w Jan. 3 1,534,670 295,194 1,829,864 290,269 2,120,133 83.9 72.4 2,152,154 1,551,209 2,647,605 51.3 120,267 Jan.10 1,484,847 273.229 1,758,076 277,896 2,035,972 84.5 72.9 2,161,898 1,575,867 2,590,681 51.9 123,466 Jan. 17 1,347,088 254,263 1,601,351 273,607 1,874,958 84.1 71.8 2,170,163 1,592,450 2,513,089 52.9 125,011 Jan. 24 1,497,500 264,533 1,762,033 284,539 2,046,572 85.0 73.2 2,168,387 1,685,981 2,466,556 52.3 126,810 Jan. 31 1,357,571 243,557 1,601,128 281,293 1,882,421 84.8 72.1 2,179,646 1,659,457 2,450,729 53.0 129,445 Feb. 7 1,451,147 243,254 1,694,401 282,702 1,977,103 85.6 73.4 2,175,614 1,614,161 2,454,165 53.5 131,315 Feb. 14 1,603,052 233,849 1,836,901 275,068 2,111,969 87.3 75.9 2,185,318 1,744,662 2,468,388 51.9 132,291 Feb. 20 1,596,458 221,996 1,818,454 269,920 2,088,374 87.8 76.4 2,191,532 1,730,796 2,466,248 52.2 133,465 Feb. 28 1,667,965 211,855 1,879,820 276,919 2,156,739 88.7 77.3 2,188,723 1,796,729 2,472,307 51.3 134,042 Mar. 7 1,701,487 186,240 1,887,727 273,493 2,161,220 90.1 78.7 2,205,462 1,802,090 2,488,537 51.4 136,591 Mar. 14 1,702,351 184,012 1,886,363 262,139 2,148,502 90.2 79.2 2,196,737 1,769,445 2,503,095 51.4 139,479 W Mar. 21 1,691,678 189,861 1,881,539 261,924 2,143,463 89.9 78.9 2,208,578 1,768,646 2,510,687 51.6 142,442 Mar.28 1,691,010 195.230 1,886,240 248,107 2,134,347 89.7 79.2 2,210,524 1,741,425 2,521,776 51.9 145,540 I J J M J A A A M M M J J A M u u u u u p p p p a a a a a n n n n l r r r r y y y y y y e e e e . . . . 3 2 6 1 1 2 2 9 2 4 1 2 1 2 9 1 8 6 0 3 7 3 5 1 1 1 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , , , , 8 6 6 7 7 7 7 7 8 7 6 6 6 5 6 2 7 6 6 6 9 8 2 9 3 0 2 7 3 2 0 4 0 7 5 8 0 5 2 2 1 3 , , , , , , , , , , , , , , 4 4 9 9 6 4 9 7 5 6 0 8 9 4 8 7 9 1 7 6 5 7 3 3 6 2 9 8 7 6 4 6 2 0 9 6 5 9 8 8 3 3 2 2 1 1 1 2 2 2 1 1 1 1 1 1 7 7 6 0 4 0 1 8 7 8 9 9 8 7 5 6 2 1 4 0 5 6 8 9 3 0 2 2 , , , , , , , , , , , , , , 4 3 4 3 3 5 4 7 5 7 0 1 5 5 6 7 9 8 1 5 6 1 4 1 6 3 9 6 4 9 9 9 4 7 5 5 0 2 6 0 8 8 VI , 2 1 1 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , , , , 0 9 9 9 8 8 9 8 9 9 8 8 9 8 3 3 8 6 1 7 2 3 5 6 1 6 9 6 8 8 9 1 8 8 2 7 0 6 8 7 5 7 , , , , , , , , , , , , , , 9 8 3 1 1 3 2 4 4 7 9 0 0 9 4 6 9 2 7 7 4 0 2 1 8 4 8 2 0 6 2 4 4 4 0 3 4 2 3 0 2 8 2 2 3 3 2 1 1 1 1 2 1 1 1 1 3 3 7 0 9 8 9 8 1 8 9 8 4 9 0 4 4 3 2 8 4 3 4 5 8 5 0 6 , , , , , , , , , , , , , , 1 6 5 0 7 7 3 2 6 5 5 8 7 8 8 1 7 3 3 8 0 3 5 5 2 9 9 8 7 7 9 7 6 4 7 6 0 8 2 0 0 5 2 2 2 2 2 2 2 2 2 2 2 2 2 2 , , , , , , , , , , , , , , 1 1 2 1 2 0 1 1 1 1 1 1 1 1 3 1 0 2 7 2 5 2 1 6 1 3 8 0 2 2 9 5 3 0 3 2 2 9 2 6 6 8 , , , , , , , , , , , , , , 7 4 0 7 3 1 6 1 0 0 5 2 5 7 1 3 5 3 0 5 7 5 6 9 4 3 1 7 1 1 3 9 7 9 6 7 7 8 2 4 4 2 9 9 9 9 9 9 9 8 8 8 8 8 8 8 0 1 0 1 0 0 6 6 9 0 8 9 9 9 . . . . . . . . . . . . . . 9 4 6 2 9 3 6 2 5 3 3 7 8 5 8 8 8 8 8 8 8 8 7 7 7 7 8 8 2 2 2 3 3 0 4 3 6 2 0 0 9 1 . . . . . . . . . . . . . . 6 7 5 8 4 7 4 3 8 4 2 8 4 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 , , , , , , , , , , , , , , 2 2 2 2 2 2 1 2 2 2 2 2 2 2 4 5 3 3 4 7 9 1 1 4 4 3 6 1 7 0 7 5 1 5 0 5 6 4 2 0 1 8 , , , , , , , , , , , , , , 9 8 2 9 1 8 3 3 4 2 7 1 9 6 5 1 3 8 5 5 4 5 0 5 8 5 8 2 9 9 3 9 9 7 3 3 6 6 4 2 8 8 1 1 1 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , , , , 7 7 7 8 7 7 7 7 7 7 7 8 7 7 6 5 7 3 9 5 3 9 1 7 0 6 7 7 5 2 4 0 0 5 4 7 1 2 3 5 7 2 , , , , , , , , , , , , , , 3 0 9 6 0 7 3 9 5 3 3 1 9 0 0 9 5 9 7 7 2 2 6 0 1 1 1 0 9 4 0 4 0 0 9 0 6 5 5 8 5 3 2 2 2 2 2 2 2 2 2 2 2 2 2 2 , , , , , , , , , , , , , , 5 5 5 5 5 5 4 5 5 5 5 4 5 4 3 5 0 4 4 1 8 4 4 4 1 9 5 9 2 6 4 7 8 8 9 9 3 9 3 9 2 9 , , , , , , , , , , , , , , 0 7 2 2 6 5 0 7 5 0 2 2 1 3 3 4 5 5 7 8 4 0 5 3 9 6 8 4 9 9 3 3 0 8 0 4 2 7 2 5 0 8 5 5 5 5 5 5 5 5 5 5 5 5 5 5 2 2 1 1 1 2 3 2 2 1 1 0 2 2 . . . . . . . . . . . . . . 7 1 9 3 7 7 8 2 1 1 1 8 1 5 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 5 5 6 6 6 6 6 7 5 6 7 7 8 9 5 1 1 8 7 8 4 0 8 9 3 7 1 , , , , , , , , , , , , , , 4 0 5 4 4 0 9 2 4 8 2 7 1 5 4 7 6 5 2 3 4 4 1 0 4 7 7 8 9 4 0 0 7 7 5 8 5 8 6 0 5 5 o w Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Movement of principal assets and liabilities of all Federal Reserve Banks during the calendar" year 1919—Continued. [In thousands of dollars.] Resources. Liabilities. 10 11 12 Ratio of cash Federal b D m y s i e s e p G c n c a o u t p o u r e v w e n r e d t a r e r n d - c p o O a d u t p i n h s e t - e e r r . d dis p T c a o o p u t e a n r l t . ed m i b n o B a o u r il p k g l e e s h n t t . di b s T o c b a o u o i n l u g t l d a n s h l t t e . d P (I e t r o c 3 e ) n . t P ( e I r t o c 5 e ) n . t re T s c e o a r s t v a h e l s. dep N o e s t its. R F a n e e c o d s i t n e t u e e r r a s v a l e l de r R F p e t o o e e s s d e s n e i r e t v r e r v e t a a e s l nd ci n r R c o B e u n t s a e l e e a n s t r t k v i i o e n n, O w obligations. circulation. note liability. liabilities H combined. O July 11 1,684,940 251,367 1,936,313 360,035 2,296,348 87.0 73.4 2,180,211 1,842,433 2,538,127 49.8 184,800 July 18 1,579,728 248,347 1,828,075 372,353 2,200,428 86.4 71.8 2,177,481 1,769,496 2,512,048 50. 9 180,911 July 25 1,616,210 251,392 1,867,602 375,556 2,243,158 86.5 72.0 2,161,023 1,796,561 2,504,497 50. 2 193,849 Aug. 1 1,612; 639 235,300 1,847,039 374,791 2,222.730 87.3 72.5 2,156,327 1,766,181 2,500,820 50. 5 200,945 Aug. 8 1.608,583 225,535 1,834,118 381,241 2,215; 359 87.7 72.0 2,152,118 1,820,817 2,532,057 49.4 205,318 Aug. 15 1.522,992 220,347 1,743,339 374,375 2,117,714 87.4 71.9 2,151,723 1,688,675 2,540,904 50. 9 201), 709 Aug. 22 1,563,048 211,262 I 1,774,310 362,911 2,137,221 88.1 73.1 2,142,701 1,621,147 2,553,534 51.3 215,795 Aug. 29 1,609,296 205,838 1,815,134 363,138 2,178,272 88.7 73.8 2,135,976 1,629,797 2,580,029 50. 7 219,815 Sept. 5 1,635,233 212,185 1,847,418 354,607 2,202,085 88.5 74.2 2,136,870 1,624,J17 2,011,097 50. 4 223,565 Sept. 12 1,524,521 230,317 1,754,838 362,005 2,116,843 86.9 72.0 2,138,499 1,618,216 2,621,228 50.4 228,109 Sept. 19 1,383,896 261,985 1,045,881 353,817 1,999,698 84.1 69.0 2,162,057 1,499,914 2,621,258 52.5 232,594 Sept. 26 1,572,503 309,779 1,882,282 342,491 2,224,773 83.5 70.7 2,187,505 1,634,074 2,655,354 51. 0 239,451 Oct. 3 1,654,166 361,771 2,015,937 326,667 2,342,604 82.1 70.6 2,205,511 1,726,266 2,708,186 49. 7 241,937 Oct. 10 1,672,797 401,058 2,073,855 326,852 2,400,707 80.7 69.7 2,202,100 1,743,850 2,741,684 49.1 247,170 Oct. 17 1,698,885 422,842 2,121,727 342,938 2,464,665 80.1 68.9 2,199,185 1,796,159 2,752,569 48.3 249,075 Oct. 24 1,666,055 416,084 2,082,139 368,846 2,450,985 80.0 68.0 2,214,561 1,792,402 2,753,457 48.7 251,590 Oct. 31 1,681,082 447,465 2,128,547 394,355 2,522,902 79.0 66.6 2,205,592 1,850,518 2,752,876 47.9 254,933 Nov. 7 1,771,028 418,461 2,189,489 433,586 2,623,075 80.9 67.5 2,187,369 1,870,510 2,800,759 46.8 257,572 •§ Nov. 14 1,700,618 439,000 2,139,618 455,653 2,595,271 79.5 65.5 2,200,106 1,858,258 2,808,450 47. I 257,281 Nov. 21 1,673,890 450,747 2,124,637 480,043 2,604,680 78.8 64.3 2,186,972 1,846,800 2,817,173 46.9 257,080 Nov. 28 1,736,033 478,176 2,214,209 495,595 2,709,804 78.4 64.1 2,159,666 1,889,399 2,852,277 45. 5 250,793 Dec. 5 1,603,313 504,795 2,108,108 514,219 2,622,327 76.1 61.1 2,154,095 1,761,521 2,881,359 46.4 257,480 Dec. 12 1,588,417 550,999 2,139,416 541,551 2,680,967 74.3 59.2 2,160,405 1,786,424 2,907,435 46.0 258,444 Dec. 19 1,414,950 580,162 1,995,112 566,266 2,561,378 70.9 55.2 2,154,911 1,610,924 2,988,894 46.8 259,975 Dec. 26 1,510,364 684,514 2,194,878 585,212 2,780,090 68.8 54.3 2,135,536 1,704,470 3,057,640 44.8 261,039 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 17 CONDITION DURING 1919 OF MEMBER BANKS IN PRINCIPAL CITIES. The Board receives reports on Friday of each week from member banks in leading cities showing the principal items of resources and liabilities. The subjoined table shows the number of reporting banks and the weekly changes in their resources and liabilities. In making a comparison between the consolidated figures for reporting member banks on various dates throughout the year, it should be borne in mind that the number of reporting banks has increased gradually from 763 to 797 as a result of accession of new members in the reporting cities. The total of United States securities owned by the reporting banks shows a decrease during the year of 433.5 millions, from 2,383.3 to 1,929.8 millions, notwithstanding the inclusion since June 6 of Victory notes under this general heading. Holdings of Treasury certificates, which were 1,269.9 millions on the first Friday of the year, reached a maximum of 2,328 millions on May 2, shortly before the close of the Victory loan campaign. Since October 10 these holdings have been below 1,000 millions, and at the close of the year stood at 789.9 millions, or 480 millions less than the total shown at the beginning of the year. Holdings of United States bonds other than those available for circulation—principally Liberty bonds—declined during the year from 827.6 to 632.8 millions, while Victory notes, holdings of which appeared for the first time on June 6, declined from 447.9 millions to about 238 millions. Between June 6 and the end of the year the net liquidation of United States securities by reporting banks amounted to 938.7 millions. Loans secured by United States war obligations, which amounted to about 1,220 millions on January 3, exclusive of rediscounts with the Federal Reserve Banks, showed a downward trend until the flotation of the Victory loan. During the month of June these loans increased considerably, reaching the high point of 1,438.2 millions on June 20, Since the latter part of October holdings of war paper show a perceptible decrease, the total of such holdings at the close of the year, 1,020.4 millions, being about 200 millions less than at the beginning of the year. Since August 15 loans secured by miscellaneous stocks and bonds have been segregated in the weekly statements of member banks. These loans on the whole have followed an upward course during the five months for which data are available, and the total on December 26, 3,300.4 millions, shows an increase of 373.5 millions over the total reported on August 15. Total loans and investments, including ordinary commercial discounts and acceptances, but excluding bills rediscounted at Federal Reserve Banks, show an increase for the year from 13,697.8 millions to 15,621 millions, the latter figure being the high point for the year, The rediscounts of these reporting banks with the Federal Reserve Banks amounted to 466.2 millions on January 3 and declined Digitized fogr rFaRdAuSaElRly to 226 millions on May 23. During the last three months http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 AST:NTUAL REPORT OF THE FEDERAL RESERVE BOARD. of the year the movement has been upward, and the total amount held under rediscount by the Federal Reserve Banks for the reporting banks on December 26, 899.6 millions, was nearly double the amount held at the beginning of the year. In addition to rediscounts, the Federal Reserve Banks extended accommodation to member banks by discounting their notes secured by United States war obligations, by customers' paper secured by such obligations, and to a much smaller extent by other eligible paper. The total of collateral notes held under rediscount by Federal Reserve Banks for reporting banks, which was 972.2 millions at the beginning of the year, reached its maximum of 1,312.1 millions on May 16, the Friday preceding the allotment of the Victory loan. During November and December, owing largely to the elimination of the differential between rates on war paper and ordinary commercial paper, the amount of member banks' collateral notes discounted by the Federal Reserve Banks shows some decline, the total on December 26 of 933.6 millions being 38.6 millions below the aggregate on January 3. Of the total amount of bills held by the Federal Reserve Banks under discount and rediscount for the reporting member banks on December 26, 1,236.5 millions, or about two-thirds, was secured by war paper, and 596.7, or about one-third, by commercial paper. Government deposits showed wide fluctuations in connection wTith the various operations of the Treasury, mainly the flotation of the Victory loan, the issue and redemption of the various loan and tax certificates series, and the collection of the quarterly installments of income and excess profits taxes. The high point, 1,180.6 millions, was reached on June 6 following the allotment of the Victory loan. Large deposits are shown also on dates following the payment of tax installments and the redemption by the Treasury of outstandingcertificates. Government deposits held by the reporting banks were considerably smaller during the last quarter of the year than during the preceding months. Other net demand deposits show an upward movement paralleling the increase in the loans and investments of the reporting banks. Except in the first quarter of the year, when demand deposits fell below 10,000 millions, the movement was upward, reaching its high point of 11,404 millions on December 12. Time deposits, partly as the result of accession to membership of trust companies with large savings departments, show an almost steady upward course, except for the few weeks in May preceding the placing of the Victory loan, and on December 26 reached a maximum total of 2,302.3 millions, or about 750 millions more than the total at the beginning of the year. Reserve balances of the reporting banks carried with the Federal Reserve Banks fluctuated within the narrow limits of 1,225.2 millions on February 7 and 1,461.6 millions on November 7. Cash in vault shows maximum amounts of about 429 millions' at the opening and close of the year, and a minimum of 336.5 millions on the Digitized fotrh FiRrAdS FERri day in February. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Principal resources and liabilities of member banks in leading cities on each Friday during the calendar year 1919. [In thousands of dollars.] r b N b e a i e p u n n r o m g k r o s t - f - . U l S b c t a c o i o n t t r u a i n i c o s r t t d u e e e e n - s - d s . L U i b b n O i o o n c b in t n n i l e h t u g d d e r e d s s t d r , y ! - V U n S i n o t c a i t t e t t o e e s r d s . y i c e U c n S a d e n d t t n r a e i e t e t i t s b f s e e i o s t d s - - . f s o U e S T w c n t u o a n i r t t t e i a e e t d l d s ie . sw c L g U u S a o a r r n t t a e i a n i o o d t t s e b e n b d s l s s i y e . - - t b h s b y L b a e o o a n o c t o s n n h u n t a U d o d e r d n e c s r . s s . d k S s . l A o m i a n ll n e v s o n e t t s a h s t n . - e 1 d r lo m i a n T n e v o s n e t a s t a s t l n - . d b R R F B a e e w e l a a s s d i e e n n e t r r h c k r v v a e . e e l s C v a a s u h l i t n . d c w d e o s e p h e m m o N r ic v p s a e h i e u n t t s t r i d e s e o d - n . de T p i o m si e ts. G p m o o d v s e e e i n - t r s t n . - R p F B a w e e B y a s d i i a e n l e t l b r h k r s v l a . e e l F c R B o r e w e B e u d a s d i i n e n e l t i l r t h s r k s e v - a . d e l Jan.3 763 265,774 827,569 1,269,948 2,363,291 1,220,040 10,114,469 13,697,800 ,295,849 428,791 10,145,058 1,552,301 431,604 972,220 466,163 Jan. 10 769 263,184 797,991 1,300,888 2,362,063 1,165,451 10,131,141 13,658,655 ,295,723 411,603 10,066,502 1,565,326 499,022 880,286 446,707 Jan. 17 768 262,742 825,595 1,467,026 2,555,363 1,182,721 10,135,468 13,873,552 ,298,874 386,621'10,080.102 1,605,064 658,956 811,749 402, 730 Jan.24 772 262,785 799,999 1,457,219 2,520,003 1,189,351 10,092,149 13,801,503 ,275.623 368,296 9,995,791 1,587,597 489,447 998,545 360,773 Jan. 31 772 263,047 769,727 1,514,776 2,547,550 1,183,245 10,100,720 13,831,515 ,307', 454353,950 9,952,408 1,611,721 693,681 838,230 352,525 Feb. 7 771 263,214 739,108 1,463,955 2,466,277 1,198,353 10,006,011 13,670,641 225,219 353,177 9,786,907 1,616,452 581,969 933,753 372,888 Feb. 14.... 771 263,111 723,713 1,742,993 2,729,817 1,170,031 10,072,938 13,972,786 255,438 361,138 9,911,667 1,624,454 644,536 , 039,467 376,113 Feb. 21.... 772 262,760 698,676 1,729,178 2,690,614 1,158,500 9,975,131 13,824,245 225,462 336,514 9,945,267 1,633,657 552,634 ,078,992 323,153 Feb. 28.... 771 263,523 695,678 1,998,658 2,957,859 1,174,124 10,039,003 14,170,986 253,166 337,698 9,988,464 1,646,174 680,105 ,157,121 316,738 Mar. 7 771 264,375 675,632 1,994,256 3,934,263 1,133,193 10,069,172 14,136,628 262,249 346,035 10,035,620 1,646,620 546,190 ,188,026 292,831 Mar. 14.... 772 j265!735|676,095 2,241,182 2,183,012 1,118,067 10,201,559 14,502,638 298,.29O 348,814 10,311,435 1,668,533 670,239 ,175,463 290,087 Mar. 21 772 2~6"7~, 0~8~1~i665,441 2,022,018 2,954,540 1,123,551 10,233,563 14,311,654 236,335 347,755 10,058,842 1,674,992 ;690,045 ,131,300 293,717 Mar. 28.... 772 267,756 1660,825 1,900,673 2,829,254 1,121,818 10,252,960 14,204,032 244,821 350,048 10,054,438 1,684,259 1608,561 ,140,828 282,109 Apr. 4 773 268,883 646,365 1,841,783 2,757,031 1,106,751 10,218,294 14,082,076 267,552 349,579 10,097,465 1,691,971 J452,831 ,140,253 276,737 A A p p r r . . 1 1 8 1.... 7 7 7 7 3 3 2 2 6 6 8 8 , , 9 7 5 7 0 9 6 63 4 7 7 , , 2 4 6 9 4 3 2 2, , 0 1 7 0 9 9 , , 4 4 8 4 9 0 3 2 , , 0 9 2 8 5 5, , 5 8 3 8 2 3 I 1 , , 1 0 1 9 0 3 , , 1 98 3 2 2 1 1 0 0 , , 2 2 3 6 7 6 , , 3 7 7 1 7 2 1 1 4 4 , , 3 3 4 7 6 3 , , 2 3 2 9 6 2 2 27 5 5 2 , , 9 4 8 7 6 7 | ; 3 3 5 4 6 9 , , 1 9 4 5 5 2 1 1 0 0 , ,1 04 8 7 6 ; , 1 1 0 0 9 2 1 1, , 7 6 1 9 4 8 , , 2 1 1 1 6 7 1 6 7 5 23 2 , ,6 7 7 7 1 5 , , 2 1 1 5 0 9 , ; 4 4 2 9 5 8 2 28 9 1 3 , , 4 4 7 2 2 8 Apr. 25.... 772 268,823 657,697 2,046,358 2,972,878 1,099,898 10,264,007 14,336,783 288,044 353,173 10,209,754 1,717,842 525,735 ,164,126 244,995 May 2 771 269,287 669,736 2,328,124 3,267,147 1,085,333 10,326,851 14,679,331 273,146 347.320 10,322,632 1,720,352 727,905 il,244,113 243,671 May 9 773 |268,188 678,617 2,260,432 3,207,237 1,072,498 10,369,872 |14,649,6O7 299,739 1360,887 10,486,764 1,742,095 551,099 !l,254,624 244,031 May 16.... 773 268,095 682,490 2,222,332 3,172,917 1,080,080 10,428,511 14,681,508 317,760 |360,596 10,571,547 1,718,894 434,848 il',312,063 248,002 May 23.... 773 1268,215 864,846 1,777,868 2,910,929 1,179,537 10,515,096 14,605,562 298,008 1359,184 10,370,747 1,715,542 627,897 1,226,986 225,953 May 29.... 772 1268,378 852,944 1,739,582 2,860,904 1,194,722 10,561,604 14,617,230 285,891 344,662 10,442,847 1,729,689 541,247 |l, 250,202 235,772 June 6 770 1269,153 636,978 447,884 1,514,452 2,868,467 1,420,581 10,656,381 14,945,429 303,769 1368,882 10,375,244 1,727,163 1,180,592 ,084,182 251,215 June 13.... 771 268,566 636,292 424,665 1,422,736 2,752,259 1,416,615 10,772,909 14,941,783 257,523 !374,450 10,587,031 1,729,575 945,738 ,119,496 274,187 June 20 "" 268,540 638,781 388,738 1,040,664 2,336,723 1,438,204 10,711,859 14,486,786 268,989 |358,588 10,321,405 1,736,134 823,236 ,062,494 300,522 June 27.... 772 269,264 628,427 374,822 916,739 2,189,252 1,380,628 10,780,317 14,350,197 323,333 1351,599 10,286,406 1,756,963 782,610 ,025,844 325,067 July 3 773 269,314 635,170 349,918 1,001,415 2,255,817 1,369,948 10,873,648 14,499,413 269,102 343,185 10,511,628 1,758,103 601,481 ,113,102 335,750 July 11.... 771 1269; 614 628,734 341,030 978,081 2,217,459 1,384,579 10,901,086 14,503,124 335,133 383,808 10,646,627 1,763,207 516,420 ,154,341 354,341 July 18 769 1269,001 650,083 368,189 930,124 2,217,397 1,382,145 10,891,032 14,490,574 300,919 364,823 10,716,098 1,766,815 412,925 ,068,817 349,978 July 25.... 769 269,622 636,510 353,751 896,685 2,156,568 1,363,764 10,859.247 14,379,579 318,281 355,910 10,543,056 1,789,774 405,161 ,100,684 340,096 Aug. 1 — 269,743 645,116 337,239 1.134,206 2,386,304 1,353,109 11,057,662 14,797,075 353,542 338,966 10,776,645 1,861,519 517,149 ,092,941 337,123 Aug. 8 770 270,231 641,315 328,671 1,160,302 2,400,519 1,326,286 11,040.854 14,767,659 - 353,345 351,220 10,744,722 1,882,694 551,406 ,088,510 338,810 Aug. 15.... 773 644,195 |329,442 1,200,736 2,443,361 1,304,031 2,926,989 ",274,832 14,949,213 11'360,554 347,145 10,879,079 1,896,770 624,744 ,006,902 320,560 i Prior to Aug. 15 loans secured by stocks and bonds were included in this classification. I—1 CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Principal resources and liabilities of member banks in leading cities on each Friday daring the calendar year 1919—Continued. to O [In thousands of dollars.] I Other Loans r b N b e a i e p u n n r o m g k r o s t - f - . U l b S c t a c o i o n t t r u a i n i c o s r t t u d e e e e n - - s s d . L i U b S n i o n c i t b n a n l i e u t g t d r e e d s t s d y - , V U S n i o n t c a t i t e t t o e e s r s d . y ' c i e U c n S a d e n d t t n r e a i e t e s t i t b f e e s o i t s d s - - f . s o U e S T w c n t u o a n i r t t t e i a e e t d l s d ie . s c w L U u S o a r n r t a e a n i d o t t s e e b b s s d l y e i- - t b h s y b e a o a c n o t s n u h n t U d r o e d e r c s . d S ks . l A o i m a l n l n v e s o e n t s a t h s t n - e . d r lo m i a n T n e v o s n e t s t a a s t l n - . d R R b F B a w e e e l a s s d a i e e n e t n r r h k r c v v a . e e e l s C v a a s u s]h l t in d c w e d o s p h e e m N o i r m c v p s e h a e i u t t n t s r i e d s e o d - n de T p i o m si e ts. G p m o o d v e s e e i - n t r t s n . - R p F B a e e w B y a s d i i a e n e l t l b r h r k s v a l . e e l F c R B o r e w B e e u d a s d i i n n e e l t i l t h r s k r s v e - a . d e l bonds bonds. Aug. 22.... 775 268,959 642,182 321,955 1,187,316 2,420,412 1,307,872 2,943,553 8,292,637 964,474 286,616 350,507 10,794,660 1,900,776 573,213 1,086,341 Aug. 29 774 269,252 637,382 319,282 1,155,560 2,381,476 1,302,062 2,915,491 8,369,878 968,907 325,776 345,605 10,802,505 1,923,494 524,017 1,123,709 o Sept. 5 774 269,393 636,804 316,489 1,334,416 2,557,102 1,294,285 2,956,596 8,425,179 233,162 342,058 365,330 10,901,999 1,921,549 686,443 1,147,401 Sept. 12.... 774 269,551 632,065 312,628 1,111,850 2,326,094 1,309,370 3,012,523 8,497,269 145.256 383,481 368,649 11,220,961 1,928,472 505,296 1,037,148 t-TJ Sept. 19.... 776 270,365 624,4341312,726 1,125,677 2,333,202 1,343,049 3,027,173 8,602,211 305,635 249,379 358,276 10,973,284 1,978,1181770,864 925,339 H S O e c p t t . . 3 26.... 7 7 7 7 6 6 2 26 6 9 9 , , 6 7 5 0 6 6 6 6 1 1 9 5, , 6 9 2 6 4 8 3 30 0 4 2 , , 6 9 0 3 8 0 1 1 , , 0 00 5 8 0 , , 0 3 1 3 6 9 2 2, , 1 2 9 4 7 2 , , 9 9 3 4 4 3 1 1 1 , , 3 3 3 1 3 8 , , 6 94 9 4 7 3 3, , 1 0 2 5 2 3 , , 6 1 1 1 4 0 8 8 , , 6 7 6 5 7 1 , ,9 7 5 0 0 8 3 2 9 9 1 7 , , 4 45 4 8 2 3 36 3 3 2 , , 4 9 3 1 7 9| 3 3 5 4 3 9 , , 9 78 5 0 0 1 1 1 0 , , 0 8 1 3 9 9 , , 4 1 8 5 6 4 2 1 , , 0 9 0 94 2 , , 2 5 1 9 6 5 : '6 6 0 9 4 2 ,4 ,3 8 3 5 51 1, , 1 0 6 9 8 6 , , 5 0 7 7 4 2 Q Oct. 10..-. 776 269,539 611,714J305,181 992,791 2,179, 22511,321,076 3,105,934 8,870,046 476,281 369,653 370,745 11,062,811 2,024,097 1612,268 1,181,395 H Oct. 17.... 778 269,365 615,062'305,866 945,549 2,135,842 1,302,128 3,141,026 8,854,567 433,563 | 396,123I3ti8,385 11,153,523 2,037,6881482,804 1,214,751 Oct. 24.... 783 268,689 632,3211302,887 930,126 2,134, 0231,252,406 3,166,168 8,984,507 537,104 jl382,356 374,581 11,179,52912,173,538 438,955 1,187,969 Oct. 31 784 268,612 636,0661298,637 904,623 2,107,938 1,234,05713,246,059 9,023,666 611,720 II403,171 358,771 11,284,902 |2,194,156 1355,360 1,194,489 Nov. 7 783 268,209 633,950=292,410 847,558 2,042,127 1,141,04913,246,138 9,141,277 570,591 11461,651! 382,67911,284,244 2,209,169,330,843 1,166,815 Nov. 14.... 782 268,997 631,7301278,659 831,281 2,010,667 1,061,43813,202,988 9', 147,264 422,357 " 417,1231381,503 11,354,900 '2,224,042 285,803 1,065,540 Nov. 21.... 794 269,073 634,368 275,522 821, 016 1,999,979 1,060,216J3,220,937 9,182,416 463,548 409,1131386,046 11,343,085 (2,288,186 231,701 1,054,532 Nov. 28.... 795 269,097 628,221 265,981 816,540 1,979,839 1,053,66313,222,622 9,195,138 451,262 414,856I3S4,543 11,337,614 2,288,133 183,053 1,107,935 D D e e c c . . 5 12.... 7 7 9 9 6 6 2 2 6 6 9 9 ; ,8 4 5 2 0 5 6 6 3 2 1 8 , , 3 7 7 2 4 8 2 2 5 5 6 1, , 6 4 2 6 4 5 8 7 6 9 2 2 , , 0 7 1 2 7 2 2 1 , , 0 9 1 4 9 2, , 9 2 2 8 4 1 1 1 , , 0 0 2 20 3 , , 5 1 7 0 4 71 3 3 , , 2 2 4 0 9 4 , , 0 84 6 5 2 9 9 , , 1 2 8 4 6 6 , , 6 6 8 9 7 7 4 4 3 5 8 9 , . 9 2 2 5 0 7 1. 4 4 0 0 6 2 ,1 ,4 9 2 3 9 3 3 9 9 5 3 , , 9 5 8 5 7 8 1 1 1 1 , , 2 4 0 0 3 4 , , 9 2 9 8 4 9 2 2 , , 2 2 7 8 0 3 , , 6 6 7 7 8 3 4 2 1 9 5 5 , , 0 9 0 6 3 2 9 9 8 7 5 7 , , 1 0 2 5 8 4 Dec. 19.... 796 269,188 626, 297241,910 844,309 1,981,704 1,022,63313,270,511 9,339,958 614,806 il,316,937 403,554 11,195,085 2,293,384 647,898 846,103 Dec. 26.... 797 269,113 632,776 237,997 789,882 1,929,768 1,020,384 3,300,373 9,370,426 620,951 il,347,175 429, 712 11,174,249 2,302,344 580,452 933,603 w o g Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 21 ACCEPTANCES. Reference has already been made to the efforts to develop an acceptance market in this country, and notwithstanding adverse conditions there has been a substantial growth in the use of the acceptance as a credit instrument especially adapted to financing the movement of goods between the United States and foreign countries, from one foreign market to another, and between localities within the United States. Incorporated banks were first permitted to accept about 10 years ago under the laws of some of the States in which they were domiciled, and the Federal Reserve Act authorizes member banks to accept drafts and bills of exchange having not more than six months' sight to run, exclusive of days of grace, which grow out of transactions involving the importation or exportation of goods; or which grow out of transactions involving the domestic shipment of goods, provided shipping documents conveying or securing title are attached at the time of acceptance; or which are secured at the time of acceptance by a warehouse receipt or other such document conveying or securing title covering readily marketable staples. The law also permits any member bank to accept drafts or bills of exchange drawn upon it having not more than three months7 sight to run, exclusive of days of grace, drawn under regulations to be prescribed by the Federal Reserve Board, by banks or bankers in foreign countries or dependencies or insular possessions of the United States for the purpose of furnishing dollar exchange as required by the usages of trade in the respective countries, dependencies, or insular possessions. There is a restriction, however, which applies to all three classes of acceptances, that no member bank may accept bills for any one person, firm, or corporation to an amount equal at any time in the aggregate to more than 10 per cent of its paidup and unimpaired capital stock and surplus, unless the bank is secured either by attached documents or some other adequate security growing out of the same transaction as the acceptance, and no bank shall accept such bills to an amount equal at any time in the aggregate to more than one-half of its paid-up and unimpaired capital stock and surplus. The Federal Reserve Board is, however, authorized, under such general regulations as it may prescribe to be applicable to all banks alike, to permit any member bank to accept bills growing out of transactions involving the importation or exportation of goods to an amount not exceeding at any time in the aggregate 100 per cent of its paid-up and unimpaired capital stock and surplus, but in no event shall a member bank's acceptances growing out of domestic transactions or for the purpose of furnishing dollar exchange exceed in the aggregate 50 per cent of its capital stock and surplus. The Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

22 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Reserve Banks are authorized to discount acceptances of the kinds just described, which have a maturity at the time of discount of not more than three months' sight, exclusive of days of grace, and which are indorsed by at least one member bank, and they are also permitted under rules and regulations prescribed by the Federal Reserve Board to purchase and sell in the open market at home or abroad either from or to domestic or foreign banks, firms, corporations, or individuals, cable transfers and bankers1 acceptances and bills of exchange of the kinds and maturities made eligible for rediscount, with or without the indorsement of a member bank. Under the law the Board appears to have some latitude of discretion in the matter of permitting Federal Reserve Banks to discount renewal acceptances, and this authority was granted in a few instances and for comparatively small amounts during the war and immediately following the cessation of hostilities. The Board had repeated applications during the first half of the year for authority to discount renewal acceptances growing out of various foreign transactions, but has consistently declined to admit the eligibility of renewals except in cases where owing to delay in transportation or for other reasons it was clear that the renewal bill would meet all requirements applicable to the original acceptance, and that the goods covered by the acceptances were still in existence unconverted in form and capable of ready identification. In its last annual report the Board discussed the subject of acceptances at length and pointed out that there was not in this country any broad acceptance market such as exists in London. The development of such a market is necessarily a slow process and the burden of its support has fallen during the year 1919, as in previous years, upon the Federal Reserve Banks. This condition will doubtless continue until banks generally begin to invest funds temporarily idle in acceptances and until this method of employing funds appeals to the private investor. The Federal Reserve Banks most actively engaged in the purchase of acceptances in the open market deemed it necessary in the beginning to establish a more favorable rate both for the discount of these bills for member banks and for their purchase in the open market than was established for the discount of commercial paper. This policy merely involved a recognition of the high quality of these credit instruments and was adopted the more readily in order to stimulate the development of a new business with which the American bankers were, as a rule, unfamiliar and which was regarded as essential in upbuilding the Federal Reserve system and in financing the foreign commerce of the United States by American banks instead of by foreign banks. In establishing preferential rates for acceptances recognition was given to the fact that bills drawn against actual shipments of com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 23 modities and accepted hy the strongest banks and bankers of the country were credit instruments of greater value and could therefore command a lower rate than the average of commercial paper coming from miscellaneous banks in the ordinary course of their discount operations. The Federal Reserve Banks in their open-market purchases have adopted the policy of keeping their buying rates more closely in line with the rates at which bills were offered in the open market by purchasing only at or slightly below those rates, taking into consideration the value of the bank indorsement required by Federal Reserve Banks, but which the bills did not bear ordinarily when they were sold on the outside. For example, when prime 90-day bills unindorsed were sold at 4J per cent, the Federal Reserve Banks would buy prime bills of like maturity well indorsed at 4| to 4£ per cent, and as outside rates advanced the}" would advance their buying rates so that in December prime 60 to 90 day bills with good indorsements were bought by the Federal Reserve Banks at the rate for commercial paper, 4f per cent, although the same bills may have been offered by dealers in the open market without indorsement at 4$ to 5 per cent. A differential in favor of prime bills indorsed and rediscounted by member banks will be a necessary step in the further development of a broad and dependable acceptance market. The fact that exports from the United States during the year 1919 reached unprecedented figures, and exceeded imports in value by about $4,000,000,000, has aroused inquiry as to what expedients have been resorted to in the financing of exports. Goods have been sent out of the country in large volume, notwithstanding high prices, and the utter demoralization in the exchanges of many of the importing countries, conditions which ordinarity would greatly restrict our exports. Although there has been the largest trade balance in our favor in our history our net visible outgo of gold for the year was $291,651,202, ; or, if the amount of gold held on December 31, 1919, for Federal Reserve account by the Bank of England is deducted, a net total of $160,330,713. These circumstances point to credit transactions on a large scale, the nature of which it is difficult even measurably to ascertain. The acceptances purchased by the Federal Reserve Banks are based mainly upon imports, and it appears that exporters have generally used their own capital and credit in financing their credit transactions abroad. IMPORTS AND EXPORTS. In considering the figures of our foreign commerce, it is necessary to realize that the great volume of our exports at present goes to countries to which sale is, in most cases, possible only if coupled with arrangements for extending credit, while the balance of trade is ad- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24. ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. verse to this country with countries in a position to pay by their own exports or in gold. Our foreign commerce for the 12 months ending December 31, 1919, showed a balance of exports amounting to $4,017,745,000. If this balance is subdivided so as to show sep arately our trade with countries where, broadly speaking, credit must be extended and countries which, in general, are in position to pay, either through exports or by the shipment of gold, the figures result as follows: Imports into the United States and exports from the United States in the trade with leading foreign countries during the calendar year 1919. [In thousands of dollars.] Imports. Exports. Excess of exports. Group A—Allied and associated countries: United Kingdom. 309,189 2,279,178 1,969,989 Canada. 494,694 734,267 239,573 Newfoundland and Labrador 5,361 15,190 9,829 France 123,871 893,369 769,498 Belgium 7,700 377,876 370 176 Italy * 59,048 442,677 383,629 Portugal 6,415 19,962' 13,547 Roumania . . 6,588 6,588 Serbia, Montenegro, and Albania. 2,928 2,928 O-reece 28,611 42,884 14,273 Russia in Europe. 2,953 27,758 24,805 Russia in Asia... 6,710 54,679 47,969 Total 1,044,552 4,897,356 3,852,804 Group B—Former enemy countries: Austria- Hungarv 2,391 42,212 39, 821 Germany. 10,624 92,761 82,137 Bulgaria 2,098 1,788 1310 Total. . . .. 15,113 136,761 121,648 Group C—Neutral, including inactive belligerent countries: (a) Neutral countries in Europe- Netherlands ... 75,507 255,134 179,627 Sweden... 13 826 133 063 119,237 Norway. . 7,371 135,135 127,764 Denmark 6,202 163,965 157,763 Spain... 49,392 102,820 53 428 Switzerland 27,688 76,146 48,458 Total 179,986 866,263 686,277 (&) Non-European neutrals and inactive belligerents— Argentina 199,158 155,968 1 43,190 Brazil 233 571 114,656 i 118,915 Chile 82,442 53,472 i 28,970 Cuba. . 418,610 278,391 1140,219 China 154,154 105,515 i 48,639 British East Indies. 322,148 81,514 i 240,634 Japan 409,853 366,365 i 43,488 Total ... 1,819,936 1,155,881 1664,055 AH other countries 844,819 865,890 21,071 Grand total 3,904,406 7,922,151 4,017,745 1 Excess of imports. To make possible these large exports to countries not in a position to pay cash, credit or capital must have been advanced in one shape or another. The nature of these transactions can not, of course, be accurately analyzed. Between January 1, 1919, and December 31, 1919, the Government of the United States made advances to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 25 allied and associated powers amounting to $1,757,989,481.95, and various loans were placed in the American market by foreign Governments. The remainder was undoubtedly covered in many ways* A large part, approximately $2,000,000,000, has probably fallen, directly or indirectly, upon the commercial banks throughout the country, and to this fact is to be attributed in corresponding measure the expansion of bank credit experienced during the year. While such credits would not be eligible for rediscount at Federal Reserve Banks, the banks extending them have undoubtedly in whole or in part recouped themselves through the rediscount of eligible paper with the Federal Reserve Banks. The Board has frequently expressed itself as opposed to the financing of exports which require long-term credit through banking operations as distinguished from appeals to the securities market, and takes occasion to repeat that view in this summary of general conditions. FISCAL AGENCY OPERATIONS. Although the conclusion of the armistice ended the more strenuous stage of Treasury financing, there has been no slackening of the duties imposed upon the Federal Reserve Banks as fiscal agents of the Government. These banks, as heretofore, have handled all details connected with the sale, allotment, distribution, and redemption of Treasury certificates of indebtedness among member and nonmember banks of their respective districts, have received subscriptions to the Victory loan, collected all note and certificate payments, and redeposited the funds with depositary banks, withdrawing them as required by the Treasury. They have also effected the various exchanges of bonds and redemptions of certificates and have paid and canceled coupons of war securities as they have fallen due and have been presented. By means of interclistrict settlements through the gold-settlement fund, the Treasury has continued to be able to leave funds with designated depositary banks throughout the country until actually required, transfers being made by telegraph to Federal Reserve Banks in cities where Government disbursements are made. These transfers have involved very large sums, and the number of transfers to New York alone over the wires of the Federal Reserve System amounted in 1919 to 2,883. The subjoined table presents a detailed statement of the year's operations covering Victory notes, Treasury certificates of indebtedness issued in anticipation of Victory notes, certificates issued in anticipation of tax payments, and loan certificates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Allotments of Victory notes and Treasury certificates from Jan. 1 to Dec. 81> 1919. to Treasury certificates issued. In anticipation of— Federal Reserve Bank. Victory notes. Grand total. Tax payments. Loan Total certificates. certificates. > Victory loan. 1919 taxes. c T er o ti t f a i l c a t t a e x s. w o Boston .1371,910,150 $382,881 000 $156,158,000 $117,145,500 $273,303,500 $146,092,000 $802,276,500 $1,174186,650 w New York 1,318.041,150 1,833,198'; ooo 1,056,238,500 926,614,500 1,982,883,000 690,074,500 4,506'155 500 5,824!196,650 H C R Ph l i e c i v l h a e m d la e o n l n p d d h ia * 3 4 2 4 1 7 0 3 6 , , ,2 8 8 S 9 0 0 2 9 , , , 1 2 3 0 0 5 0 0 0 3 4 1 3 5 4 5 8 2 , , , 7 9 0 9 8 6 7 1 1 ! ' , 0 5 5 0 0 0 0 0 0 [ 2 1 7 9 0 5 2 1 , , , 9 8 1 7 5 9 2 6 4 , , , 0 0 5 0 0 0 0 0 0 1 13 4 7 3 5 2 " , , , 3 2 0 2 0 ( 2 4 ) 3 , , , 0 0 5 0 0 0 0 0 0 2 1 4 2 3 6 1 4 5 , , , 1 4 1 6 1 7 5 8 6 , , , 0 0 0 0 0 0 0 0 0 1 1 3 3 1 6 7 1 , , , 4 7 2 2 1 9 8 6 6 , , , 5 5 0 0 0 0 0 0 0 1, ' 0 6 5 8 3 4 1 0 , , 6; 9 5 5 5 7 1 3 5 1 , , , 5 0 5 0 0 0 0 0 0 1 1 , , 4 0 5 9 5 1 8 7 7, ! ! 7 4 8 5 6 0 5 4 1 , , , 7 3 6 5 0 0 0 0 0 o Atlanta 133,0S0,800 115,362!000 56,515,000 55,243,000 111,758,000 58,870,000 285,990,000 419;070,800 Chicago 694,330,000 772,990!500 j 337,976,000 267.842,500 605; 818,500 228,736,500 1,607.545,500 2,301,875,500 St. Louis.. 201,787,600 199,737,000 53,700,500 65', 929,500 119,630,000 68,972,500 388',339,500 590,127,100 Minneapolis 170,076,650 172,115,500 39,601,000 39' 303,000 78,904,000 59,114,000 310,133,500 480,210,150 Kansas City 192,429,300 145,851,500 30,878,500 40,959,500 7.1,838.000 66,238,500 283,928,000 476,357. 300 Dallas 84,002,500 85,349,500 45664,000 65,296,500 110,960,500 65,709,500 262019.500 346,022,000 San Francisco 294,905,050 308,075,000 111720,000 135,381,500 247,101,500 132,725,000 687'.901; 500 982;806,550 Total i 4,491,544,850 4,952,400,000 2,358 474,000 2,064,482,000 4,422,956,000 1,801,973,500 11,177,329,500 15,668,874,350 i Excluding $1,181,792,000 of Treasury certificates in anticipation of the Victory loan allotted through the Federal Reserve-Banks during 1918. NOTE.—Above figures are exclusive of $154,668,000 of 2 per cent 1-year certificates sold to Federal Reserve Banks to secure bank-note circulation, also of special temporary !ertificates sold to Federal Reserve Banks, none of which were outstanding on Dec. 31, 1919. o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 27 The detail work accomplished by the several Federal Reserve Banks in their respective operations as fiscal agents of the Government has been very heavy and has required the services, in the aggregate for the 12 banks, of about 2,500 officers and employees. The number of banks, members and nonmembers, through which subscriptions to the Victory loan were received by the Federal Reserve Banks was 28,120, and the Federal Reserve Banks secured subscriptions to Treasury certificates of indebtedness from 21,895 member and nonmember banks. During the year there passed through the Federal Reserve Banks and branches 32,899,724 Government checks amounting to $14,518,470,830; the banks received, paid and cancelled Liberty bond coupons and Victory note coupons to the number of 102,139,832, aggregating $515,924,896; and they redeemed Treasury certificates of indebtedness to the extent of $10,590,458,500. Payments for subscriptions to the Victory loan were received as follows: In cash, $1,050,974,052; in credit upon the books of designated depositaries, $2,043,163,341; in certificates of indebtedness, $1,397,200,508. The balance reported unpaid on December 31, 1919, was $206,949. Payments for subscriptions to Treasury certificates in anticipation of 1920 taxes were received as follows: In cash, $198,641,103; in credit, $1,512,281,397; maturing certificates of former issues, $353,559,500. Payment for subscriptions to Treasury loan certificates were received as follows: In cash, $199,- 173,116; in credit, $1,377,629,384; certificates of former issues, $225,- 171,000. The number of bank depositaries designated by the Secretary of the Treasury through the Federal Reserve Banks was 7,632 on December 31. The average daily Government balance with these depositaries during 1919 was $737,665,000, and as security for these deposits, the Federal Reserve Banks approved and received collateral of the average face value of approximately $1,338,304,000. In addition to the fiscal agency operations outlined above the Federal Reserve Banks during the year sold Treasury savings certificates amounting to $14,961,000; war savings stamps amounting to $13,118,000; and thrift stamps amounting to $1,898,000. The Treasury balances carried with the Federal Reserve Banks have been subject to wide fluctuations owing to the constantly changing requirements of the Treasury and to the seasonal character of collections of internal revenue taxes made for the Treasury's account. The following table exhibits the maximum, minimum, and daily average amount of Government deposits in the 12 Federal Reserve Banks during each month of 1919. 178983—20 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Government deposits held by Federal Reserve Banks. [In thousands of dollars.] Month. Maximum. Minimum av D e a ra il g y e. January... 150, 20,974 71,379 February.. 210, 22,745 129,750 March 292, 60,023 176,960 April 169, 38,069 99,094 May 194, 64,448 126,378 June 245, 3,917 111,614 July 185, 43,190 112,601 August 112, 37,896 66,106 September. 85, 30,253 53,970 October... 173, 51,789 88,300 November. 106, 31,700 79,978 December. 124, 30,959 70,301 Year. 292,147 3,917 98,755 MEMBERSHIP OF STATE BANKS AND TRUST COMPANIES. The movement of State banks and trust companies into the Federal Reserve System has continued throughout the year in a fairly satisfactory manner, although on December 31 about 8,021 eligible State institutions were not members. The Board is cooperating with the Federal Reserve Banks in a continuous campaign for State bank membership, and one member of the Board has been detailed to supervise these activities. The American Bankers' Association has continued its committee on Federal Reserve membership, which has done such effective work in impressing upon the management of State banks the advantages to be obtained from membership in the system. On December 31, 1918, the total membership of State banks and trust companies was 930, representing an aggregate capital and surplus of $759,790,000, and total resources of about $7,482,000,000. On December 31, 1919, the membership of other than national banks had increased to 1,181, representing a total capita] and surplus of over $891,200,000, and total resources of about $9,913,700,000. Favorable legislation in a number of States as well as cordial cooperation by nearly all of the State banking authorities have aided materially in obtaining these results. The movement of State banks and trust companies into the Federal Reserve System during 1919, as well as the percentage relationship between the number, capital, and surplus, and total resources of such members and of all State banks and trust companies reported as eligible for membership, are indicated in the following tables: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 29 Number, capital and surplus, and total resources of State banks and trust companies, members of the Federal Reserve System. [Amounts in thousands of dollars.] Dec. 31, 1918. Mar. 4, 1919. June 30, 1919. Federal Reserve district. N b u e m r. - s C u a a rp p n l d i u ta s l . T so o u ta rc l e r s e . - N b u e m r. - s C u a a rp p n l d i u ta s l . T so o u ta rc l e r s e . - N b u e m r. -i su a rp n l d us. T so o u ta rc l e r s e . - Boston 31 57,656 599,596 32 58,414 605,236 36 60,908 657,007 New York 101 277,492 3,488,611 102 286,110 3,598,070 110 297,999 4,021,687 Philadelphia... 29 66,588 324,408 31 67,000 352,963 36 68,379 376,861 Cleveland 66 90,857 597,288 73 91,785 661,562 80 93,168 681,624 Richmond 37 16,002 110,430 39 16,183 114,973 42 16,901 131,663 Atlanta 54 26,424 249,532 55 27,059 245,691 57 27,396 264,63S Chicago 288 138,827 1,363,695 296 141,116 1,446,951 305 142,963 1,556,249 St. Louis 44 43,970 347,683 43 44,440 350,880 52 41,618 333,696- Minneapolis... 70 8,259 81,861 72 8,852 90,122 75 9,112 90,671 Kansas City... 27 8,489 96,796 29 8,759 104,648 31 6,969 94,574 Dallas 97 9,083 58,254 107 10,025 65,356 115 10,538 70,231 San Francisco. 16,143 163,959 90 15,731 164,609 103 16,960 173,681 Total 930 759,790 7,482,113 775,474 7,801,061 1,042 792,911 8,452,582 Nov. 17, 1919. Dec. 31, 1919. Federal Reserve district. NNnummhbPerr . Ca s p u i r t p a l l u a S n i d resTouortcaels Number. C s a u p r it p a l l u a s n . d Total Boston 36 64,233 692,320 36 64,335 719,918 New York 117 306,574 1,203,806 122 320,123 4,283,636 Philadelphia.. 38 70,328 359,318 38 70,455 370,462 Cleveland 97,330 760,659 97 101,871 803,439 Richmond 18,087 158,886 46 19,285 166,007 Atlanta 34,529 366,831 64 35,553 389,854 Chicago 321 153,837 .,681,302 326 157,019 1,751,177 St. Louis 44,086 391,268 44,354 409,086 Minneapolis 10,087 101,601 10,455 107,139 Kansas City... 42 7,934 107,909 47 8,353 119,953 Dallas 113 9,779 87,196 114 10,391 97,103 San Francisco.. 120 37,329 513,217 137 48,930 Total.. 1,135 854,133 9,424,313 1,181 891,174 9,913,707 Statement showing comparison between the number, capital and surplus, and total resources of(l) member banks, (2) banks eligible for membership in Federal Reserve System (including both member and nonmember banks), and (3) all banks in the United States, exclusive of savings and private banks, as of June 30, 1919. [Amounts in thousands of dollars.] Capital and surplus. Aggregate resources. Number. Per cent of total. Amount. P o e f r t o c t e a n l. t Amount. P o e f r t o c t e a n l. t, 1. Member banks: National 7,780 88.2 1,989,597 71.5 20,791,147 71.1 State banks and trust companies . . 1,042 11.8 792,911 28.5 8,452,582 28.9 Total 8,822 100.0 2,782,508 100.0 29,243,729 100.0 2. Banks eligible for membership: Member banks 8,822 52.0 2,782,508 72.1 29,243,729 77.4 Nonmember banks 8,160 48.0 1,074,365 27.9 8,547,623 22.6 Total 16,982 100.0 3,856,873 100.0 37,791,352 100.0 3. All banks in the United States, exclusive of savings and private banks: Member banks 8,822 33.4 2,782,508 66.9 29,243,729 72.3- Nonmember banks 17,560 66.6 1,376,023 33.1 11,209,020 27.7 Total.. 26,382 100.0 4,158,531 100.0 40,452,749 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. State banks andjtrustlcompanies, members and nonmembers of the Federal Reserve System, classified according to institutions with combined capital and surplus of (1) $1,000,000 and over, and (2) less than $1,000,000, as of June SO, 1919. [Amounts in thousands of dollars.] (1) BANKS AND TRUST COMPANIES WITH COMBINED CAPITAL AND SURPLUS OF $1,000,000 AND OVER. Members Nonmembers. Federal Reserve district. Number. s C u a a rp n p l i d t u a s l . res T o o u t r a c l es. Number. s C u a a rp p n l i d t u a s l . res T o o u t r a c l es. Boston 13 49,850 536,267 8 14,800 113,020 New York 45 275 667 3 74fi Sfifi 25 91,277 683,730 Philadelphia 12 60,100 310.564 28 56,278 269,386 Cleveland 15 79,200 537,664 18 38,920 209,583 Richmond 6 9,700 i 77,848 *i 36,390 173,794 Atlanta 10 18,497 185,934 1,000 9,730 Chicago 24 100,550 1.070.758 21,200 181,591 St Louis 12 33,172 252,749 6,525 41,498 Minneapolis . . . . . .. 3 4,050 14,137 Kansas City 2 3,666 1 51.443 Dallas 3 10,913 San Francisco 3 4,700 57,589 21 4,742 564,498 43,366 Total ... 142 634,436 6,827,182 136 318,548 2 271,880 (2) BANKS AND TRUST COMPANIES WITH COMBINED CAPITAL AND SURPLUS OF LESS THAN $1,000,000. Boston 23 11,058 120,740 155 28,407 315,808 New York.... 65 22,332 275,321 238 48,343 491,510 Philadelphia.. 24 8,279 66,297 312 70,423 514,415 Cleveland 65| 13,968 143,960 533 73,077 613,191 Richmond 7,201 53,815 561 55,263 403,563 Atlanta 47 8,899 78,704 720 53,948 366,660 Chicago 281 42,413 ! 485,491 2,016 160,277 1,537,193 St. Louis 40 j 8,446 | 80,947 926 63,949 462,665 Minneapolis... 75 ! 9,112 90,671 687 40,510 358,906 Kansas City... 29 3,969 I 43,131 824 49,765 403,445 Dallas 115 10,538 70,231 397 34,092 157,980 San Francisco. 100 12,260 116,092 655 77,763 650,407 Total... 900 158,475 1,625,400 8,024 755,817 6,275,743 Total number, capital and surplus, and resources of State banks and trust companies, both member and nonmember reported as eligible for membership on basis of capital requirements; also ratios of number, capital and surplus, and resources of State bank and trust company members to totals for all State banks and trust companies reported as eligible for membership, as of June 30, 1919. [Amounts in thousands of dollars.] Number of banks. Capital and surplus. Total resources. Federal Reserve district. 1. 2. 3. Per 4. Total 5. 6. Per 7. Total 8. 9. Per Total Mem- cent eligible Member cent eligible Member cent eligible. bers. (2+1). banks. banks. (5+4). banks. banks. (8-4-7). 199 36 18.1 104,115 60,908 58.5 1,085,835 657,007 60.5 New York 373 110 29.5 437,619 297,999 68.1 5,196,927 4,021,687 77.4 Philadelphia . . . 376 36 9.6 195,080 68,379 35.1 1,160,662 376,861 32.5 Cleveland . . 631 80 12.7 205,165 93,168 45.4 1,504,398 681,624 45.3 Richmond 619 42 6.8 108,554 16,901 15.6 709,020 131,663 18.6 Atlanta 778 57 7.3 82,344 27,396 33.3 641,028 264,638 41.3 Chicago 2,331 305 13.1 324,440 142,963 44.1 3,275,033 1,556,249 47.5 St Louis 981 52 5.3 112,092 41,618 37.1 837,859 333 696 39 8 Minneapolis 765 75 9.8 53,672 9,112 17.0 463,714 90,671 19.6 Kansas City 855 31 3.6 56,734 6,969 12.3 498,019 94,574 19.0 Dallas . 515 115 22.3 49,372 10,538 21.3 239,124 70,231 29.4 San Francisco...... 779 103 13.2 138,089 16,960 12.3 1,388,586 173,681 12.5 Total 9,202 1,042 11.3 1,867,276 792,911 42.4 17,000,205 8,452,582 49.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 31 In the table immediately following will be found a statement of the total resources as of June 30, 1919, of all member banks, from which it will be seen that the resources of the State banks and trust companies which are members of the system are but 95 millions less than those of the nonmember banks reported as eligible for membership, and that the total resources of all member banks are about three and one-half times as great as those of eligible nonmember banks. The resources of the member banks are 72.3 per cent of the total resources of all banks in the United States, exclusive of savings and private banks. (1) Member banks: . Total resources National $20, 791,147, 000 State banks and trust companies 8, 452, 582,000 Total 29, 243, 729, 000 (2) Nonmember State.banks and trust companies reported as eligible for membership in the Federal Reserve System 8, 547, 623, 000 (3) All banks in the United States, exclusive of savings and private banks: National 20, 791,147, 000 State banks and trust companies 19, 661, 602, 000 Total 40, 452, 749, 000 (4) Ratio of total resources of all member banks to total resources of nonmember banks reported as eligible for membership (per cent) 342. i Ratio of total resources of member banks to total resources of all banks in the United States, exclusive of savings and private banks (per cent) 72.3 RATES OF EARNINGS BY CLASSES OF ASSETS. Prior to the revision of discount rates in November, the rates of earnings of the Federal Reserve Banks during the year from the various classes of investments fluctuated between comparatively narrow limits. Earnings from discounts showed a maximum average rate of 4.53 per cent in December and a minimum average rate of 4.13 per cent in August. Variations in the average rate correspond more or less to the relative volume of war paper taken during the respective months. Average rates of earnings from acceptances purchased in the open market because of the special preferential treatment of war paper were slightly higher than the average rates from, discounts, and the average rates earned by the Federal Reserve Bank of New York were somewhat lower than corresponding rates reported by the other banks. Earning rates were fairly level during the first 10 months of the year, ranging from 4.19 per cent in June to 4.29 per cent in January. Increases in both the discount and open-market rates at the Federal Reserve Banks are reflected in higher rates of earnings for November Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. and December, the rate of earnings from, discounted paper showing a rise from 4.15 in October to 4.40 in November and 4.53 in December, while the rate of earnings from open-market paper rose from 4.22 in October to 4.33 in November and to 4.53 in December. Average rates of earnings from United States securities ranged between 2.17 per cent in September and 2.43 per cent in April. With a steady increase in the amount of one-year 2 per cent certificates included in the United States security holdings of the banks, a corresponding decline in the average rate of return might have been expected, but the average monthly rates of return did not show such a decline for the reason that the ratio was affected by the much larger amounts of special certificates held by the banks at various intervals for one or more days to cover Treasury overdrafts. The effect of these holdings is seen in the relatively low average rates obtaining in January, February, and September. As a result of this development the average rate of return on all investments between January and October moved more or less in conformity with the average monthly rate of return from discounts, [n September, however, when the holdings of special 2 per cent Treasury certificates were particularly heavy, the average rate of return from all investments shows a decline notwithstanding the simultaneous rise in the percentage of return from bills discounted. Rates of earnings from investments of the Federal Reserve Banks. B co il u ls n t d e i d s . - | i i bou o B p g iH e h n t s in U S n ta i t t e e s d v T es o t t m al e i n n t - s. i market. securities. January 4.21 4.29 2.26 4.04 February 4.18 4.25 2.31 4.03 March 4.16 4.26 2.41 4.02 ipril 4.16 | 4.23 2.43 4.01 tfay 4.15 I 4.25 2 42 3.99 Tune 4.20 ! 4.19 2.33 4.01 y 4.15 i 4.27 2.24 3.98 iusust 4.13 ! 4.22 2.21 3.93 September 4.17 I 4.27 2.17 3.91 October 4.15 | 4.22 2.18 3.95 Sfovember 4.40 j 4.33 2.22 4.16 December 4.55 ! 4.54 % 19 4.29 Average for year. 4.23 ! 4.30 2.26 4.04 DISTRIBUTION" OF EARNING ASSETS AT THE OPENING AND CLOSE OF THE YEAR. During the past year total earning assets of the Federal Reserve 3anks increased by 805 millions, from 2,275 to 3,080 millions. All ;hree main classes of assets show considerable gains for the year— liscounts by 365 millions, open market purchases by 293 millions, tnd United States securities by A 45 millions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 33 Largely as the result of the reduction during the year in the volume of outstanding Treasury certificates, the holdings of "war paper" (i. e., discounted and rediscounted paper secured by United States war obligations) show a decline from 1,535 to 1,510 millions. Of the later date total, over 75 per cent was composed of member banks' collateral notes, as against about 50 per cent at the beginning of the year. Considerable gains are shown in the December 26 figures of discounted bank and trade acceptances. The largest increase, however, under the general head of discounted bills is shown for ordinary commercial paper, the holdings of which assumed particularly large proportions during the last two months of the year, following the adoption of revised discount rates which reduced and subsequently eliminated in part the differential in favor of war paper maintained during the greater part of the year. There has been a steady and increasing flow of bank acceptances, based on foreign trade transactions, into the portfolios of the Federal Reserve Banks, holdings of this class of paper at the close of the year, 452.5 millions, being 317.8 millions larger than at the beginning of the year. Larger holdings are also shown for trade acceptances based upon foreign trade transactions and for dollar exchange bills, while holdings of both bank and trade acceptances based on domestic trade transactions were smaller at the close of the year than at its opening. As against a decrease of 3 millions in the holdings of United States bonds (largely circulation bonds and 3 per cent conversion bonds) the banks show an increase during the year of 148.4 millions in Treasury certificates, the holdings of this class of securities constituting nearly 9 per cent of the total earning assets of the banks, compared with 5.5 per cent on the first Friday of the year. Changes in classes of earning assets during 1919. [In thousands of dollars.] Jan. 3, 1919. Dec. 28,1919. Increase. Bills discounted: Secured by Government war obligations- Customer's paper 734,610 • 352,588 i 382,022 Member banks' collateral notes 800,060 1,157,766 357, 706 Total 1,534,670 1,510,354 124,316 Otherwise secured and unsecured— Agricultural paper 28,108 24, 825 i 3,283 Live-stock paper 27,247 26,243 i 1,004 Member banks' collateral notes 18,365 2 8,256 i 10,109 Bankers' acceptances 1,596 18,183 16,587 Trade acceptances 16,633 30,992 14,359 Other commercial and industrial paper. 203,245 576,025 372, 780 Total 295,194 684,524 389,330 Total discounted bills 1,829,864 2,194, 878 365,014 Digitized for FRASER 2 Includes $20,000 secured by War Finance Corporation bonds. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

34 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. Changes in classes of earning assets during 1919—Continued. [In thousands of dollars.] Jan. 3, 1919. Dec. 26,1919. Increase. Bills bought in open market: Bankers" acceptances— In the foreign trade 134,703 452,460 317,757 In the domestic trade 147,830 121,169 i 26,661 Dollar exchange bills 1,647 3,914 2,267 Total ?. 284,180 577,543 293,363 Trade acceptances— In the foreign trade 3,426 5,024 1,598 In the domestic trade.. 2,663 2,645 i 18 Total 6,089 7,669 1,580 Total bills bought in open market 290,269 585,212 294,943 United States bonds . . 29,824 ' 26,834 12,990 United States Victory notes 64 64 United States certificates of indebtedness 125,063 273,507 148,444 All other earning assets 13 Total earning assets. . ... 2,275,033 3,080,495 805,462 1 Decrease. EARNINGS AND OPERATING EXPENSES OF FEDERAL RESERVE BANKS. The number of officers and employees of each of the Federal Reserve Banks at the close of the year 1919, as compared with the number at the end of the previous year, is as follows: Number of Number of officers and officers and Federal Reserve Bank. employees employees Dec. 31, Dec. 31, 1918. 1919. Boston 585 755 New York.. 2,657 2,896 Philadelphia 423 647 Cleveland 589 626 Richmond.. 254 401 Atlanta 317 386 Chicago 815 1,199 St. Louis ... 385 541 IVf inneapolis 267 287 Kansas City 480 583 Dallas 403 505 San Francisco 531 567 Total 7,706 9,393 The operating expenses of all the banks have been considerably higher than in previous years. Member banks, private banking firms, and corporations have drawn or attempted to draw upon the Federal Keserve Banks for officers and employees, and the continued advance in the cost of living also has made it necessary to raise salaries. There has been no increase in the maximum salary paid nor have &ny salaries been approved by the Board for Federal Reserve Bank officers as high as those paid officers of similar rank by the larger commercial banks in the several Federal Reserve cities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 35 The average salary paid officers and employees by each Federal Reserve Bank is as follows: Average Average Federal Reserve Bank. salary of salary of officers,. employees. Boston $8,542 $1,184 New York 10,540 | 1,206 Philadelphia.. 8,318 ! 1,133 Cleveland 7,347 I 1,206 Richmond 6,215 I 1,031 Atlanta , 5,080 ' 1,054 Chicago 6,666 1,200 St. Louis 6,331 1,051 Minneapolis... 5,985 1,090 Kansas City... 5,554 1,194 Dallas 5,400 1,167 San Francisco, 5,700 1,255 The Federal Reserve Banks have strengthened their auditing and examining departments, and other necessary expenses have been incurred in bringing the banks in closer contact with the member and nonmember banks of their districts. The Federal Reserve Banks also paid all costs of transportation of currency sent to and received from member banks, and some of the Federal Reserve Banks paid all costs of returning to member banks the collateral lodged with them by their member banks as security for advances made by the reserve banks. Notwithstanding the very considerable increase in the expense accounts of the Federal Reserve Banks, the combined current net earnings of the 12 Federal Reserve Banks for the year 1919 amounted to $82,038,785, as compared with $55,446,979 for the year 1918, or an increase of $26,591,806. The combined gross earnings were $102,380,583, as compared with $67,584,417 in 1918. Provision is made for the division of earnings of the Federal Reserve Banks in section 7 of the Federal Reserve Act, which provides in part that "after all necessary expenses of a Federal Reserve Bank have been paid or provided for, the stockholders shall be entitled to receive an annual dividend of six per centum on the paid-in capital stock, which dividend shall be cumulative." As originally enacted, this section further provided that "after the aforesaid dividend claims have been fully met, the net earnings shall be paid to the United States as a franchise tax except that one-half of such net earnings shall be paid into a surplus fund until it shall amount to forty per centum of the paid-in capital stock of such bank." The act of March 3, 1919, amended this section to read as follows: "After the aforesaid dividend claims have been fully met, the net earnings shall be paid to the United States as a franchise tax except that the whole of such net earnings, including those for the year ending December 31, 1918, shall be paid into a surplus fund until it shall amount to one hundred per centum of the subscribed capital stock of such bank, and that thereafter ten per centum of such net earnings shall be paid into the surplus.7' Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. At the end of the year 1917, and before section 7 was amended, the Federal Reserve Banks of Boston. New York, Richmond, Atlanta, Chicago, and Minneapolis had paid all accumulated dividends to the end of the year 1917, and after charging off all expenses and making the depreciation allowances authorized by the Board, carried to surplus the sum of $1,134,234 and paid an equal amount to the Government as a franchise tax. The six remaining Federal Reserve Banks not having earned a sufficient amount to pay their accumulated dividends, carried nothing to surplus and made no payment to the Government at the end of the year 1917. The Federal Reserve Bank of New York having provided for all expenses and depreciation charges, and having paid all accumulated dividends, carried to surplus out of its net earnings for the year 1919, the sum of $23,964,678. It has therefore accumulated the maximum proportion of surplus provided for in section 7, as amended, of ICO per cent of its subscribed capital, plus $300,433, being 10 per cent of the balance of its net earnings for the year. The remaining 90 per cent ($2,703,894) has been paid to the Government as a franchise tax. The percentage of surplus to subscribed capital of all Federal Reserve Banks at the close of business December 31, 1919, is as follows: Federal Reserve Bank of— Per cent. Boston 58. 80 New York 100. 67 Philadelphia 55. 84 Cleveland 47. 67 Richmond 66. 26 Atlanta 68. 48 Chicago 57. 87 St. Louis 45. 81 Minneapolis 58. 05 Kansas City 76.15 Dallas 44. 29 San Francisco 65. 56 The Board desires to call attention to the fact that the very large earnings of the banks are due to their abnormally large volume of discounts forced upon them first by the war and then by conditions growing out of the war. At the close of the year 69 per cent of the loans and discounts were secured by Government war obligations. The banks have been able to maintain their reserves while carrying this heavy loan account only because a correspondingly large volume of Federal Reserve notes has been needed to meet the demands of commerce and business. As conditions become more normal, and as recourse is had by member banks to Federal Reserve Banks less constantly, and when accommodations are sought principally for the purpose of meeting unexpected demands or seasonal requirements, the gross earnings of the Federal Reserve Banks will be reduced very substantially, and as it is not probable that the expense accounts can be reduced in a corresponding degree Digitized fothr FeR nAeStE Rea rnings in future are likely to be very much smaller. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 37 The Board takes occasion again to point out that it was not until June 30, 1918, that all cumulative dividends were paid by all of the Federal Reserve Banks. At the close of the year 1918 each of the Federal Reserve Banks had set aside a reserve, out of surplus earnings, for the Government franchise tax, the aggregate of all being $26,- 728,440. These reserves were transferred to the surplus funds of the respective banks on March 5, 1919, under authority of the act of March 3, 1919, above referred to. The table below shows the capital and surplus of each Federal Reserve Bank on December 31, 1919, the gross and net earnings for the year, the dividends paid, the amounts transferred in each case to surplus, and the payments to the Treasury for account of the Government franchise tax: Net earnings Miscellaneous available tor Gross Current net deductions Dividend Federal Reserve Bank. earnings. earnings. from current dividends, payments. net earnings. I l 'A Boston $7,497,583 $5,825,758 $48,377 j $5,777,381 $414,447 New York 35,332,412 29,598,067 1,638,448 I 27,959,619 1,291,047 Philadelphia.. 8,609,880 6,834,695 175,526 ! 6,659,169 462,380 Cleveland 7,800,829 6,404,798 311,013 I 6,093,785 556,785 Richmond 4,775,324 3,863,397 a 13,869 ! 3, 877,266 252,872 Atlanta 4,416,001 3,443, 784 61,387 I 3,382,397 197,397 Chicago 12,012,078 9,463,754 887,550 i 8,576,204 700, 807 St. Louis 3,884,478 2, 709,685 354,531 I 2,355, 154 234,660 Minneapolis... 3,007,041 2,450, 550 116,607 i 2,333,943 180,186 Kansas City... 4,961,482 3,775,413 a 147,949 i 3', 923,362 228,755 Dallas 3,062,251 2,079,415 37,551 I 2,041, 864 196,335 San Francisco. 7,021,224 5,589,469 202,109 i 5,387, 360 296,161 Total 102,380,583 82,038,785 3,671,281 ! 78,367,504 5,011,832 Paid to Ratio of sur- Transferred ! United States Subscribed Surplus plus to sub- Federal Reserve Bank. to surplus | Government capital account, scribed capiaccount, j as a franchise Jan. 1,1920. Jan. 1, 1920. tal on i tax. Jan. 1, 1920. Per cent. Boston | 15,362,934 ,215,000 $8,359,034 58.80 New York ! 23,964,678 ,781,500 45,081,933 100.67 Philadelphia | 6,196,789 ,768,300 8,805,132 55.84 Cleveland ; 5,537,000 ,065,900 9,089,000 47.67 Richmond ! 3,624,394 ,784,000 5,820,463 66.26 Atlanta j 3,185,000 ,856,400 4,695,000 68.48 Chicago i 7,875,397 694,300 14,291,643 57.87 St, Louis | 2,120,494 128,900 3,723,805 45.81 Minneapolis ' 2,153,757 147,900 3,569,000 58.05 Kansas City j 3,694,607 031,100 6,116,033 76.15 Dallas i 1,845,529 841,400 3,029,937 44.29 San Francisco I 5,091,199 499,500 7,539,374 65.56 Total. 70,651,778 174,814,200 120,120,354 68.71 a Credit. PERMANENT BUILDINGS FOR FEDERAL RESERVE BANKS. In its report for the year 1918 the Board referred to the necessity for providing Federal Reserve Banks with permanent and more adequate physical facilities for the transaction of their business and called attention to the purchases of sites by eight of the banks. All of the banks have now provided themselves with suitable building sites. The property acquired by the Federal Reserve Bank of Boston early in the year 1918 at a cost of $1,000,000 was found to be inade- Digitized foqr uFaRtAeS EbRe cause of the increased busine ss of the bank, and a few http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. months ago the Board approved of the sale of this property at a net profit of approximately $140,000 and the purchase at approximately $1,400,000 of other real estate of nearly three times the area of that originally acquired. As a rule the real estate acquired by the Federal Reserve Banks may be classified as improved property, but, except in Philadelphia, the buildings can not be utilized permanently and will have to be razed before work can be begun on new construction. While it is not believed that the existing buildings add materially to the value of the land, they are assessed separately, and in cases where new construction has been begun or where plans have been completed the Board has approved the charging off by the Federal Reserve Banks of amounts equal to the assessed value of the buildings to be removed. The real estate and building account of each of the Federal Reserve Banks at the close of business December 31, 1919, is as follows: Boston $1,102, 827 New York. 3, 094, 030 Philadelphia 500, 000 Cleveland 640, 392 Richmond 504, 025 Atlanta 463, 302 Chicago 2,116,149 St. Louis 355, 737 Minneapolis 500, 000 Kansas City 461, 687 Dallas 399, 399 San Francisco 231, 375 In order to be in position to pass more intelligently upon the expenditures which the Federal Reserve Banks propose to make in their building operations, as well as to secure uniformity in essential details, the Board deemed it expedient to employ a consulting architect and secured the services of Mr. A. B. Trowbridge, of New ^ork, in this capacity. The United States Bureau of Standards of the Department of Commerce is cooperating with the Board's consulting architect in a study of the best methods of vault construction. BRANCHES OF FEDERAL RESERVE BANKS AND THEIR OPERATIONS. At the end of the year 1918 there were in operation 16 branches of Federal Reserve Banks, 5 of which had been authorized during that year. The branch of the Federal Reserve Bank of St. Louis at Little Rock, which was authorized during the latter part of the year 1918, began business on January 6, 1919. During the year just ended six additional branches have been authorized, as follows: Location. j Establishe^byfederal Reserve Houston, Tex I Dallas. Nashville, Tenn, Atlanta. Buffalo,. N.Y New York. Helena, Mont Minneapolis. Los Angeles, Calif San Francisco. Oklahoma City, Okla. Kansas City. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. 39 All of these were in active operation at the end of the year 1919 except those authorized to be established at Helena, Los Angeles, and Oklahoma City. The Federal Reserve Bank of Atlanta also established an agency for the receipt and shipment of currency at Savannah, Ga. The Board called attention in its last annual report to the greater facilities afforded by the branches to member banks located in their vicinity, as well as to the impracticability of establishing branches merely to gratify civic pride. The policy which was adopted nearly two years ago of giving equal facilities as far as possible to all member banks by having the Federal Reserve Banks pay all transportation charges on shipments of currency made to and received from member banks has been continued with satisfactory results, and, except as to time involved in transit, member banks located at a distance from the Federal Reserve Bank enjoy the same facilities in the matter of currency transfers as member banks located in Federal Reserve cities. The activities of the branches, except those at New Orleans, Detroit, and in the St. Louis, Kansas City, Dallas, and San Francisco districts, where discount operations are authorized, are devoted mainly to the collection of checks and maturing notes and bills and to currency transfers to and from member banks. A condensed statement of these activities of the branch Federal Reserve Banks appears below: Operations of Federal Reserve Branch Banks during the calendar year 1919. Average number and amount of items Average monthly currency Opened for handled daily. receipts and shipments. Branch banks. business. Number. Amount. Received. Shipped. Buffalo May 15,1919 18,944 $6,418,888 i $6,118,120 i $8,090,857 Cincinnati Jan. 10,1918 24,907 8,345,111 6,590,415 4,623,206 Pittsburgh 22,1918 32,940 15,265,149 15,844,576 16,814,852 Baltimore Mar! 1,1918 24,581 11,419,118 7,679,653 5,590,849 Birmingham.... Aug. 1.1918 6,489 2,612,619 2,400,056 2,167,916 Jacksonville.... Aug. 3,1918 5,822 1,319,101 1,879,792 2,044,364 Nashville Oct. 21,1919 8,830 2,572,052 2 1,392,516 2 1,677,750 New Orleans... Sept.10,1915 8,184 4,004,788 5,402,518 4,230,352 Detroit Mar. 18,1918 6,110 4,311,323 13,599,667 14,954,079 Little Rock Jan. 6.1919 5,535 1,282,815 1,412,786 1,196,659 Louisville Dec. 3,1917 9,141 3,183,944 3,615,367 2,033,699 Memphis Sept. 3,1918 5,472 1,758,026 2,924,000 3,931,200 Denver Jan. 14,1918 12,368 3,145,812 1,978,490 1,186,136 Omaha Sept. 4,1917 15,437 4,513,692 1,433,205 1,817,015 El Paso June 17,1918 7,482 1,431,182 1,129,136 1,150,335 Houston Aug. 4,1919 8,847 2,945,752 3 1,640,856 »2,823,946 Portland Oct. 1,1917 6,593 2,362,095 1,628,339 2,021,613 Salt Lake City.. Apr. 1,1918 15,010 3,920,959 1,099,546 864,533 Seattle Sept.19,1917 8,533 3,525,956 2,958,443 2,473,197 Spokane July 26,1917 6,751 1,561,856 566,447 693,175 Total 237,978 85,900,238 81,293,928 80,385,733 Savannah agency.. Feb. 4,1919 <817,730 4 916,660 1 Average for 7 months. 8 Average for 5 months. 2 Average for 2 months. < Average for 10 months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE CLEARING AND COLLECTION SYSTEM. Rapid progress has been made during the year in the development of the Federal Reserve clearing and collection system. The par lists of the Federal Reserve Banks include all banks in the New England States, New York, Pennsylvania, New Jersey, Delaware, Maryland, Ohio, Indiana, Illinois, Michigan, Iowa, Missouri, North Dakota, Nebraska, Kansas, Oklahoma, Wyoming, Montana, Colorado, New Mexico, Texas, Utah, Idaho, Nevada, and California, and a majority of banks in all the other States except North Carolina, South Carolina, Georgia, Florida, Alabama, and Mississippi. Opposition has developed in some localities to those provisions which require the Federal Reserve Banks to receive from their member banks, at par, checks and drafts payable on presentation and prescribe that no charge for remitting for such checks shall be made against the Federal Reserve Banks. This opposition, however, which has gradually become less intense, except in districts Nos. 6, 9, and 10, will, it is believed, disappear entirely within a reasonable time after all banks in the country are placed on the par list. Member banks are compelled by law to remit at par to Federal Reserve Banks for checks drawn upon them, and for some years it was the policy of the Federal Reserve Banks to decline to receive from member banks, for credit or for collection, checks drawn upon nonmember banks which had not agreed to remit for them at par. Persistent efforts.were made to induce nonmember banks to make remittances without charge to the Federal Reserve Banks for checks drawn upon them, but as these banks were able to avail themselves of the facilities of the system to collect their own items without expense through some correspondent bank, they were in many cases disinclined to render a like service and declined to give up this source of profit. With the approval of the Federal Reserve Board several of the Federal Reserve Banks, early in the year, undertook to collect at par on every bank in their respective districts. The Federal Reserve Bank of Boston has for more than three years been collecting at par on all banks in its district, and other Federal Reserve Banks felt that in justice to their member banks and to the public no further discrimination should be made. Recourse was had in many cases to means of collection other than banks, but as a rule such steps were not necessary for any length of time, and of the 29,561 banks in the country, 25,565 were on December 31 remitting to the Federal Reserve Banks at par, while 3,996 still declined to do so. The efforts to establish a universal par remittance system will be continued until all banks are on the par list, and it is believed that this result will be accomplished within a comparatively short time. Several banks in various sections of the country have protested Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL EEPOET OF THE FEDERAL RESERVE BOARD. 41 against the means adopted by the Federal Reserve Banks with the approval of the Board of collecting checks drawn upon banks which refuse to remit at par to the Federal Reserve Banks for items drawn on themselves, and in reply to formal complaints the Board has defined its attitude as follows: The Board's action is based upon its conception of the very evident purposes of the Federal Reserve Act. Section 13 of the act begins as follows: "Any Federal Reserve Bank may receive from any of its member banks and from the United States deposits of current funds in lawful money, national-bank notes, Federal Reserve notes, or checks, and drafts, payable upon presentation, and also, for collection, maturing notes and bills." Even though the Federal Reserve Board has heretofore ruled that the permissive "may" as used in the foregoing paragraph should not be construed to mean the mandatory "shall/' nevertheless it is clear that a Federal Reserve Bank in order to do any business whatever must exercise some of the permissive powers authorized by law. It would be impossible otherwise for a Federal Reserve Bank to afford to its member banks many of the privileges which the law clearly contemplates and to which the member banks are clearly entitled. But independently of a discussion of this phase of the situation, it seems to the Board that doubts upon this question are resolved upon a consideration of the provisions of section 16: "Every Federal Reserve Bank shall receive on deposit at par from member banks or from Federal Reserve Banks checks and drafts drawn upon any of its depos. itors." In this case, the obligatory "shall" is used so that there is no option in the Federal Reserve Bank so far as checks and drafts upon its depositors are concerned. From this it may be argued that as the depositors of a Federal Reserve Bank are member banks there is no obligation upon the Federal Reserve Bank to receive on deposit at par checks on nonmember banks, but even if the language of section 13 be construed as permissive there seems to be no question that the Federal Reserve Bank has the right to receive on deposit from any of its member banks any checks or drafts upon whomsoever drawn, provided they are payable upon presentation. The whole purpose of the act demands that in justice to member banks they should exercise that right. Section 16 further provides that the Federal Reserve Board "may at its discretion exercise the functions of a clearing house for such Federal Reserve Banks * * * and may also require each such bank to exercise the functions of a clearing house for its member banks." In accordance with the purpose of this paragraph, the Federal Reserve Board, with the view ultimately of establishing a universal or national system of clearing intersectional balances as well as bank checks and drafts, has established a gold settlement fund through which daily clearings between all Federal Reserve Banks are consummated and has also required each Federal Reserve Bank to exercise the functions of a clearing house for its member banks. In order, however, to make fully effective its facilities as a clearing house in accordance with the terms of this section, there does not seem to be any doubt that the Federal Reserve Bank should not only exercise its obligatory power to receive from member banks checks and drafts drawn upon other member banks, but that it should also exercise its permissive power to receive from member banks any other checks and drafts upon whomsoever drawn, provided that they are payable upon presentation. There are no doubt many nonmember banks without sufficient capitalization to make them eligible for membership in the Federal Reserve System, but provision is made for such banks in section 13 by authorizing the Federal Reserve Banks, for purposes of exchange or of collection, to receive deposits from any nonmember bank or trust company. But for the fact that the small country banks are able to have their out of town items credited at par by some city correspondent, there is no doubt that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. many more of them would avail themselves of the nonmember collection privilege than have done so. There is a proviso in section 13 which allows member and nonmember banks to make reasonable charges "to be determined and regulated by the Federal Reserve Board, but in no case to exceed 10 cents per $100 or fraction thereof, based on the total of checks and drafts presented at any one time, for collection or payment of checks and drafts and remission therefor by exchange or otherwise; but no such charges shall be made against the Federal Reserve Banks." This has been construed by the Attorney General of the United States as meaning that a Federal Reserve Bank can not legally pay any fee to a member or nonmember bank for the collection and remittance of a check. It follows, therefore, that if the Federal Reserve Banks are to give the service required of them under the provisions of section 13 they must, in cases where banks refuse to remit for their checks at par, use some other means of collection no matter how expensive. The action of the various Federal Reserve Banks in extending their par lists has met with the cordial approval of the Federal Reserve Board, which holds the view that under the terms of existing law the Federal Reserve Banks must use every effort to collect all bank checks received from member banks at par. Several of the Federal Reserve Banks are now able to collect on all points in their respective districts at par, and new additions to the other par lists are being made every day. The Board sees no objection to one bank charging another bank or a firm or individual the full amount provided in section 13 of the Federal Reserve Act (10 cents per $100) and has not undertaken to modify these charges, but the act expressly provides that no such charge shall be made against the Federal Reserve Banks. It is the Board's duty to see that the law is administered fairly and without discrimination and that it applies to all banks and sections alike. It will, therefore, take any and all steps necessary to carry out the intent of the law as construed by the highest legal authority of the administrative branch of the Government. The marked increase during the past year in the volume and amount of checks cleared through the Federal Reserve Banks shows that member banks are depending more and more upon the facilities afforded by the Federal Reserve Banks. The daily average number of items handled by the Federal Reserve Banks during the 30 days ending December 15, 1919, was 1,412,737, as compared with a daily average during the same period in 1918 of 912,752, and the daily average during the entire 12 months of the year 1919 was 1,110,791, against 612,731 during the year 1918. For the monthly period between November 16 and December 15, 1919, the daily average amount represented by the items handled by all Federal Reserve Banks was $631,650,320, as compared with $524,407,631 for the same period in 1918. The daily average value of items increased from about $190,000,000 in 1917 to $420,980,209 in 1918, and $524,960,916 in 1919, an increase of nearly 25 per cent during the year 1919 as compared with the year 1918. It should be recalled that during the year 1918 the service charge of from 1 to 1^ cents per item previously imposed by Federal Reserve Banks to cover overhead and other costs of collection was abolished and the growth of the collection business during that year was due to a gr^at extent to this fact. Further growth during the year 1919 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 43 may be attributed to the larger use of the Federal Keserve collection system by member banks and to the greater effectiveness and value of the par collection system because of its approach toward universality. The following table shows the daily average number and the amount of items collected by the 12 Federal Reserve Banks for each 30-day period from December 16, 1918, to December 15, 1919: Daily average number and amount of items handled by the 12 Federal Reserve Banks, during each month from Dec. 16, 1918, to Dec. IS, 1919. Month ending (1919). Ite c i m n it y s F ( d e d r d a a e i w l r y a n l a o v n R er e a b s g a e e n r ) v k . e s Ite i ( F m n d e a d s i e l d d y r i r a s a a l t w v r R i e c n e r t a s o e g n r e o v ) u b e . t a s c n i i d k ty e s Ite u ( m d re a s r i l y d o r f a a v w U e n n ra i t g o e e n d ) . T S r t e a a te s- s Number. Amount. [Number. Amount. Number. Amount. Jan. 15 95, 622 $221,889, 635,080 $165,386,737 77,282 $37,753,800 Feb. 15... ! 90,944 198,935, 599,951 156,360,759 126,051 63,221,002 Mar. 15 | 109,083 168,567, 640,346 171,714,589 114,563 46,746,505 Apr. 15 i 138,817 197,456, 686,512 167,142, 262 137,228 48,802, 574 May 15. 129,378 176,737, 665,641 163,067,746 157,820 45,278,441 June 15 1 132,688 196,594, 696, 457 191,330,944 118,248 48,316,599 July 15 '....! 149,902 218,737, 737,007 194,300,102 95,986 49, 867,067 Aug. 15 j 139,678 194,733, 731, 680 176,612,134 83,659 57, 868,769 Sept. 15 ! 149,460 208,529, 761,680 202,812,209 77,201 51,935, 604 Oct. 15 | 164,761 235,072, 824,862 223,417, 562 93,437 45,272,641 Nov. 15 177, 589 236,521, 915,794 246,055,511 107,551 37,355,291 Dee. 15 182,347 251,531, 975,095 254,594,746 88,071 36,506,264 Items doubly handled. Items handled by entire Federal Reserve system (daily average ex- Drawn on banks in Handled by both parent Month ending (1919). eluding duplications). other districts (daily bank and branches average). (daily average). Number. Amount. Number. Amount. Number. Amount. Jan.15. 807,984 $425,030,483 99,828 $64,079,660 13,662 $10,080,440 Feb. 15. 816,946 418,517,185 89,972 58,431,530 12,807 11,036,400 Mar. 15. 863,992 387,028,471 100,963 55,760,559 15,047 9,774,269 Apr. 15. 962,557 413,400,957 101,329 59,610,264 16,958 9,029,805 May 15. 952,839 385,083,316 95,541 57,858,264 15,798 7,613,957 June 15. 947,393 436,242,116 99,349 61,906,814 18,260 11, 626,331 July 15. 982,895 462,904, 505 104,997 66,672,048 19,061 10,502,207 Aug. 15. 955,017 429,214,521 110,817 66,552,940 20,787 9,119,2C3 Sept. 15 988,341 463,276,894 107,279 66,883,891 21,959 10,984,785 Oct. 15. 1,083,060 503,762,815 119.387 74,965,478 23,162 11,417,988 Nov. 15. 1,200,914 519,932,757 129', 399 78,178,485 27,594 12,683,739 Dec. 15. 1,245,513 542,632,239 139,915 76,999,447 27,309 12,018, 634 The table next following shows by Federal Reserve districts the number of banks remitting at par on January 1, 1920, and the number of nonmember banks not remitting at par, as compared with the number on January 1, 1919/together with the additions to the par list during the year 1919. 178983—20 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44 ANXUAL REPORT OF THE FEDERAL RESERVE BOARD. Number of banks remit- Non- Number of banks remit- Non- Net ting at par on Jan. 1, member ting at par on Jan. 1, member increase 1919. banks 1920. banks during Federal Reserve not re- not re- year in Bank. mitting mitting number of M ba em nk b s e . r m b N e a m n o k n b s - e . r Total. o 1 a n , t 1 J p 9 a 1 a n r 9 . . M ba e n m k b s e . rm b N e a m n o k n b s - e . r Total. o 1 a n , t 1 J p 9 a a 2 n r 0 . . no b p n a a m n r k e l s i m s t o b . n er Boston 423 246 669 432 245 677 i 1 New York 723 339 1,062 753 318 1,071 1 21 Philadelphia 661 329 990 102 678 415 1,093 86 Cleveland 814 728 1,542 411 843 1,C85 1,928 357 Richmond 565 351 916 1.156 585 485 1,070 995 134 Atlanta 426 209 635 1,345 426 355 781 1,219 146 Chicago 1,334 2,392 3,726 1,805 1,374 3,896 5,270 293 1,504 St. Louis 514 1,046 1,560 1,600 538 2,309 2,847 355 1,263 Minneapolis 867 1,169 2,036 1,743 920 1,879 2,799 1,025 710 Kansas City 994- 2,200 3,194 979 1,038 3,346 4,384 1,146 Dallas 727 247 974 947 756 1,220 1,976 973 San Francisco... 644 1,049 1,693 159 723 942 1,665 109 1 107 Total 8,692 10,305 18,997 10,247 ; 9,066 16,495 i 25,561 3,996 6,190 1 Decrease. GOLD SETTLEMENT FUND. There has been a continued and steady increase in the volume of business cleared through the gold settlement fund during the past year. This increase is due in part to the transfer of funds on account of the Treasury's fiscal operations, including transactions incident to the sale of certificates of indebtedness and to the flotation of the Victor}^ loan and payment on account of income and excessprofits taxes. Heavy transfers have also been occasioned by seasonal demands for money throughout the country for the movement of crops and for industrial purposes, and the transactions have been increased in volume also because of the larger use by member banks of the clearing and collection facilities of the Federal Reserve System. There has been no important change during the past year in the method of operating the gold settlement fund, which has been explained fully in previous reports. The facilities of the gold settlement fund clearing have been extended to all branches of Federal Reserve Banks which carry deposit accounts of member banks, thus simplifying the accounting between the head offices and the branch banks. The New Orleans branch of the Federal Reserve Bank of Atlanta, the Baltimore branch of the Federal Reserve Bank of Richmond, the Louisville, Memphis, and Little Rock branches of the Federal Reserve Bank of St. Louis, the Omaha and Denver branches of the Federal Reserve Bank of Kansas City, the El Paso and Houston branches of the Federal Reserve Bank of Dallas, and the Salt Lake City, Seattle, Spokane, and Portland branches of the Federal Reserve Bank of San Francisco are now settling direct. While this arrangement has added to the work of making the settlement in the office of the Federal Reserve Board, additional facilities have been provided so that the settlements are now effected more quickly for the 12 Federal Reserve Banks and 13 branches than when Digitized fort FhRe AsSeEttRle ments were made only between the 12 Federal Reserve Banks. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 45 The gold settlement fund operations have been affected to a large extent during the year 1919 as during the two previous years by the operations of the Treasury. This is shown by the comparison of the volume of clearings and transfers handled through the gold settlement fund with the principal fiscal operations of the Treasury. During the first quarter of the year clearings and transfers through the fund averaged more than one billion dollars a week. The record figure of $1,345,521,000 was established during the week ending January 9. A large part of the volume of business handled through the fund during this period is accounted for by the movement of funds received by the Treasury from the sale of $4,952,400,000, of certificates issued in anticipation of the Victory loan. For the week ending March 20 combined clearings and transfers exceeded by more than $200,000,000 similar transactions for the previous week. This increase is accounted for by the movement of funds incident to the payment of the first installment of the income and excess-profits taxes to the Government on March 15, which amounted to more than $1,000,000,000. Another large increase is noted for the week of May 22, which is incident to the movement of funds in connection with the payment of the first installment on account of the subscriptions to the Victory loan. For the week ending June 19 a new high record in the volume of business was established and combined clearings and transfers amounted to more than $1,696,907,000, an increase of more than $450,000,000 over the previous week's figures. This is accounted for by the large movement of funds incident to the second installment payment of the income and excess profits taxes due on June 15. These figures were exceeded, however, during the week ending September 18, the combined clearings and transfers for the week aggregating $1,729,000,000. This amount was again exceeded the following week, when the total transfers and clearings through the fund amounted to more than $1,940,000,000. The large volume of transactions during this period is accounted for by the payment of funds in connection w^ith the third installment of income and excess profits taxes on September 15 and the unusually heavy movement of Government funds in connection with the redemption of Treasury certificates of indebtedness outstanding. During the last quarter of the year the combined clearings and transfers have averaged well above $1,500,000,000 weekly, due to continued heavy movements of funds by the Government and to large transfers for account of member banks. Combined clearings and transfers through the fund during the year 1919 aggregate $73,984,252,000, as compared with $50,251,- 592,000 in 1918, $27,154,704,000 in 1917, $5,533,966,000 in 1916, and $1,052,649,000 in 1915, making a grand total of $157,977,163,000 since the operation of the fund was begun on May 20, 1915. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. When it is considered that these enormous transfers are made almost instantaneously by means of the leased wire system without involving the physical movement of a dollar, it will be seen that the arrangement has been of incalculable value to the Government, the banks, and the public. The total expense of operation, including the entire cost of the leased wires and salaries of accountants, was approximately $250,000. This represents the basic cost of effecting the domestic exchanges between the several Federal Reserve districts. A charge of 10 cents per $100, if generally imposed, would have involved an expense to the commerce of the country of $73,984,252. FEDERAL RESERVE BANK NOTES. On May 6, 1919, the Secretary of the Treasury announced that no further sales of silver under the act of April 23, 1918, generally known as the Pittman Act, except to the Director of the Mint, were contemplated. This act, which was reviewed in the last annual report of the Board, provides that in order to prevent contraction of currency, the Federal Reserve Board is authorized to permit, or require Federal Reserve Banks to issue Federal Reserve bank notes in any denomination, including denominations of $1 and $2, in an aggregate amount not to exceed the amount of standard silver dollars melted or broken up, upon depositing with the Treasurer of the United States, as security for the bank notes issued, United States certificates of indebtedness, or United States one-year gold notes. The total amount of standard silver dollars melted or broken up under the provisions of this act up to May 6, 1919, the date of final transaction, was $260,121,554, which, therefore, is the total amount of Federal Reserve bank notes which can be issued by the Federal Reserve Banks under the provisions of the so-called Pittman Act without melting more silver dollars. Up to December 31, 1919, $259,375,000 of Federal Reserve bank notes had been issued by the Federal Reserve Banks under the provisions of the act, principally in denominations of $1 and $2, as shown by the following table: Statement showing Federal Reserve bank notes, by denominations, issued to Federal Reserve Banks under the provisions of the ''Pittman Act" up to and including Dec. SI, 1919. Bank. $1 $2 $10 Total. Boston $12,788,000 86,728,000 $1,920,000 $21,436,000 New York.... 33,944,000 13,272,000 10,620,000 $1,440,000 59,276,000 Philadelphia.. 19,196,000 4,664,000 6,420,000 30,280,000 Cleveland 13,900,000 4,080,000 5,319,000 23,299,000 Richmond 10,524.000 1,736,000 12,260,000 Atlanta 12,388,000 1 656,000 1,620,000 15,664,000 Chicago 27,608,000 7,344,000 3,700,000 960,000 39, 612,000 St. Louis 9,056,000 2,512,000 4,500,000 1,000,000 17,068,000 Minneapolis... 6,012,000 1,648,000 820,000 8,480,000 Kansas City... 6,688,000 1,792,000 4,340,000 12,820,000 Dallas :.... 6,432,000 1.368,000 500,000 8,300,000 San Francisco. 8,076,000 2,304,000 500,000 10,880 000 Total... 166,612,000 49,104,000 40,259,000 3,400,000 259,375,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 47 Section 6 of the so-called Pittman Act provides that as and when standard silver dollars shall be coiDed out of bullion purchased under authority of this act the Federal Reserve Banks shall be required by the Federal Reserve Board to retire Federal Reserve bank notes issued under section 5 of the act, if then outstanding, in an amount equal to the amount of standard silver dollars so coined, and the Secretary of the Treasury shall pay off and cancel United States certificates of indebtedness deposited as security for the bank notes so retired. As no bullion had been purchased by the Secretary of the Treasury on August 20, 1919, which was the date when the first certificates deposited under the provisions of this act as security for Federal Reserve bank notes matured, the Secretary of the Treasury advised the Federal Reserve Banks that the oneyear Treasury certificates of indebtedness which had been purchased to secure their bank-note circulation would be extended for one year from that date and that all subsequent issues of certificates of indebtedness held by the Federal Reserve Banks under the provisions of this act to secure their bank notes would be extended for one year from date of maturity until further notice by the Secretary of the Treasury. REGULATION AND CONTROL OF FOREIGN EXCHANGE. During the first half of the year the restrictions which had been imposed on foreign exchange operations during the war, under the authority vested in the Secretary of the Treasury and the Federal Reserve Board by the Executive order of January 26, 1918, were removed as rapidly as was consistent with the best interests of the United States. Remittances were authorized to countries to which they had formerly been prohibited, and, wherever possible, " dealers" were allowed entire freedom in consummating exchange transactions which had previously required the approval of the Division of Foreign Exchange. By the 1st of June most of the restrictions on foreign exchange transactions had been removed, and further statistical reports were not required from " dealers" after June 25. These reports disclose that from February 20, 1918, when the Executive order went into effect, to June 25, 1919, the total exchange from all sources on all countries of the world purchased by American u dealers" was $11,769,942,317, while the total amount sold during that period was $11,747,071,165. The total purchases and sales of demand and cable exchange between " dealers" in the United States for the same period were $9,980,894,404, of which $6,882,707,401, or approximately 69 per cent, were for exchange on Great Britain. In addition to these figures, the statement of the arbitrage operations also shows the important position in world finance held by Great Britain. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 AXXUAL REPORT OF THE FEDERAL RESERVE BOARD. Exchange on Great Britain was sold in the United States by foreign holders from February 20, 1918, to June 25, 1919, in an aggregate amount of $927,664,000, and exchange on Great Britain was purchased from American "dealers" for foreign account to a total of $904,693,000. Of these amounts residents of the. United States bought from British banks sterling to the equivalent of $540,020,000, while we sold to British banks the equivalent of $232,758,000 in sterling bills. The total arbitrage transactions of American "dealers" for this period were as follows: Foreign exchange purchased from other countries by the United States $1, 606, 710, 000 Foreign exchange sold to other countries by the United States 1, 296, 454, 000 During the period under discussion the total debits and credits to dollar accounts in the United States of European allied countries were $39,949,417,757, of European countries other than our Allies $5,498,186,496, of Asia $4,310,229,078, and South America $3,230,701,836. Purchases of securities in this country for foreign account for the same period were made to the value of $777,031,000, while sales here for foreign account aggregated $701,367,000. Securities held in this country for foreign account at the close of business June 25, 1919, amounted to $1,990,808,000, while securities held abroad for American account on the same date were $112,982,000. EXCHANGE ON CENTRAL EUROPE. On April 22 the Division of Foreign Exchange prohibited "dealers" from purchasing exchange, except from the American Relief Administration, upon any of the following countries: Finland, Czechoslovakia, Jugo-Slavia, Roumania, Poland, German Austria, Serbia, Bulgaria, and Turkey. On April 30 Germany was added to this list by virtue of a license issued by the War Trade Board. This regulation was issued for the purpose of enabling the American Relief Administration to make use of such foreign currencies in the countries concerned as were received by it for food being shipped and to employ the dollar equivalent in the purchase of food in the United States for shipment to those countries, and was of great service in getting food into those territories. The arrangement continued in effect until June 30, on which date the American Relief Administration went out of existence. The President issued an order on June 26, 1919, which revoked and canceled all previous proclamations prohibiting the exportation of coin, bullion, and currency and controlling transactions in foreign exchange and the power and authority for those purposes vested in the Secretary of the Treasury and in the Federal Reserve Board, and all orders, rules, and regulations issued or prescribed in connection therewith, except that such proclamations, orders, rules and regulations were continued in force and effect in so far as they were Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL EEPORT OF THE FEDERAL RESERVE BOARD. 49 necessary to enable the Secretary of the Treasury and the Federal Reserve Board effectively to control: (1) All exportations of coin, bullion, and currency to that part of Russia now (then) under the control of the so-called Bolshevik government, (2) any and all dealings or exchange transactions in Russian rubles, (3) the transfer of credit or exchange transactions with that part of Russia now (then) under the control of the so-called Bolshevik government, (4) any and all transfers of credit or exchange transactions with territories in respect of which such transactions were then permitted only through the American Relief Administration. On August 12 the Federal Reserve Board announced the issue of a general license permitting the exportation from the United States of Russian rubles, provided that notice of exportation be given to the Customs Division of the Treasury and to the Division of Foreign Exchange of the Federal Reserve Board. As the War Trade Board section of the Department of State issued on July 14 a general enemy trade license opening Germany to trade and communication and took similar action with regard to Hungary on'September 2, all restrictions have been removed from the exportation of coin, bullion, and currency, and from transactions in foreign exchange, except as to (1) transactions with or for persons in that part of Russia now under the control of the so-called Bolshevik government, and (2) the importation of or exchange transactions in Russian rubles. Continued and insistent demand for silver in China and the Orient generally led to a gradual increase in the price of silver, which on November 25, 1919, sold as high as $1.3875 per ounce. The bullion value of the silver content of the standard silver dollar is equal to $1 when silver sells at $1.2929 per fine ounce. The bullion value of the silver content of our subsidiary coinage is equal to its face value when silver sells at $1.38. It is evident, therefore, that when silver rises appreciably above $1.29 per ounce, our standard silver dollars can be exported at a profit, and that should silver remain for any length of time above $1.38 our subsidiary silver coinage would be subject to export. Standard silver dollars must, of course, be delivered on presentation for redemption of silver certificates, which are in effect trust receipts calling for the delivery of a specified number of standard silver dollars. Apart from silver so held, however, there is a considerable number of standard silver dollars free in the Treasury. In order to protect our subsidiary coinage from export it was deemed advisable to utilize the standard silver dollars free in the Treasury in order, so far as possible, so to control the rates of exchange with silver standard countries as not to permit the export of our subsidiary silver coinage to become profitable. The Board, in cooperation with the Treasury Department, accordingly arranged with American banks having their own branches in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Orient, and included in the arrangement all American banks so situated, whereby these banks under the direction of the Division of Foreign Exchange of the Federal Reserve Board, will be enabled to utilize such standard silver dollars in meeting Oriental demands. This arrangement was announced by the Board on December 6, 1919, in a statement reading as follows: Announcement was made to-day that under arrangements made between the Treasury and the Federal Reserve Board, standard silver dollars that are free in the Treasury will until further notice be delivered against other forms of money to the Division of Foreign Exchange of the Federal Reserve Board, which will, through the Federal Reserve Bank of New York, cooperating with the branches of American banks in the Orient, employ such dollars in regulating our exchanges with silverstandard countries. This arrangement does not, of course, affect the redemption of outstanding silver certificates in standard silver dollars. EXPORTS OF COIN, BULLION, AND CURRENCY. The report of the Board for the year ended December 31, 1918, contained a complete statement of the operation of the gold export committee up to that date. On May 6, 1919, the Board announced that thereafter licenses for the export of silver bullion or silver coin of foreign mintage would be granted freely and without condition. This was followed on June 9, 1919, by the announcement that, with the approval of the President, the control previously exercised over transactions in foreign exchange and over the exportation of coin, bullion, and currency would be terminated except as to the importation or exportation of ruble notes or exchange transactions with that part of Kussia under the control of the so-called Bolshevik government, and except as to exchange transactions with territories with which such transactions were at that time permitted only through the American Relief Administration. At the same time it was announced that until formal action was taken by the President, applications for the export of gold would, like applications for the export of silver, be granted freely, irrespective of amount or destination except as above stated, and that during that interim licenses required to consummate specific transactions in foreign exchange would be granted freely with the exceptions indicated above. The President's order of June 26, 1919, removed all restrictions upon transfers of credit and exchange transactions and exports of coin, bullion, and currency except as to those parts of Eussia controlled by the so-called Bolshevik government. On August 12, the Board announced the issuance of a general license permitting the exportation from the United States of Russian rubles, provided that notice of such exportation be given to the Customs Division of the Treasury and to the Board's Division of Foreign Exchange. With these exceptions, there is now no control Digitized foro FvReAr StEhRe export of coin, bullion or currency. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL EEPOET OF THE FEDERAL RESERVE BOARD. 51 The following table shows the amounts represented by licenses issued by the Board from September 7, 1917, to June 7, 1919, for exports from the United States of coin, bullion, and currency, as well as the countries to which shipments were authorized. Approximately 1,142 licenses were issued for the shipment of gold, 1,500 licenses for the shipment of silver, and 1,817 licenses for the shipment of currency other than United States gold and silver certificates. There were disapproved 775 applications of all classes. Amounts represented by licenses granted by the Federal Reserve Board from Sept. 7, 1917, to June 7,1919, covering exports from the United States of coin, bullion and currency. Gold. Silver. cu U S r n r ta e i t t n e e c s d y. C th to u e r r w c e o n h u c i n c y h t r o y f cu O rr t e h n e c r y. Total. exported. North America: Canada $32,639,277.87 $9,656,011.43 S3,900,946.42$:521,439,382.48 $674,059.48 $681.,309,677.68 Mexico 48,033,946.96 9,924,964.99 23,969,947.58 1,394,090.66 51,445.81 83,374,396.00 West Indies 177,531. on 610,180.67 78,107,189.00 6,467.56 206,854.00 79,108,223.03 Total.. 80,850,756.63 20,191,157.09 105,978,083.00 22,839,940.70 932,359.29230,792,296.71 Central America: Panama 2,007.38 94,000.00! 2,021,000.00 33,250.00 2,150,257.38 Other points 6,586.35 497,066.00! 3,349,910.00 98,175.00 238,019.10 4,189,756.45 Total.. 8,593.73 591,066.00 5,370,910.00 '8,175.00 271,269.10 6,340,013.83 South America: Argentina | 17,510,142.95 11,534.72 22,750.00 19,108.60 30,810.00 17,594,346.27 Bolhia ! 785,000.00 43.60 785,043.60 Brazil 1,142.50 ""2," 745.'66 '65,'666.'66 1,321.00 70,208.50 Chile 15,553,902.35 4,886.70 15,558,789.05 Colombia I 13,152,520.60 53,000.00 607,950.00 192.25 620,365.10 14,434,027.95 Equador 400.00 73,000.00 500,005.00 573,405.00 Peru 4,620,058.37 125,000.00 940,000.00 448,323.75 250." 66 6,133,632.12 Uruguay 216,200.00 1,414. "" 217,614.80 Venezuela 6,683,629.69 840,000.00 1,552.00 7,525,181.69 Other points 157,074.07 9,089.00 5,000.00 5,000.00 176,163.07 Total I 58,463,870.53 1,257,568.72 1,713,700.00 981,847.70 651,425.10 63,068,412.05 Europe: Denmark 25.00 1,453,638.00 75,000.00 11,826.00 90,261.00 1,630.750.00 France 61,673.92 10,467,855.00 49,340,730.00 2,084,093.33 158,282.00 62,112;634.25 Great Britain... 74,460.46 56,347,426.49 1,648,311.72 1,896,950.92 4,254,509.20 64,221,658.79 Holland 357.50 1,700,000.00 2,000.00 53,591.81 4,450.00 1,760,399.31 Italy 4,278.00 500,300.00 504!578.00 Norway 2,232,272.69 15,500.00 27,460.00 392,073.64 2,667:306.33 Portugal 10,000.00 438.00 10]438.00 Russia 5,723.00 52,959.14 1,657,000.00 102,142.50 5QO'.66 1,818.324.64 Spain 4,455,294.00 500.00 200.00 280.00 4,456:274.00 Sweden 160.00 883,852.80 39,410.11 180,675.00 1,104;097.91 Switzerland 225.00 460,032.00 100.00 8,708.00 13,000.00 482,065.00 Other points 1,340.00 368,000.00 112,700.00 400,000.00 292,703.80 1,174.743.80 Total.. 4,603,536.88 74,476,836.12 52,851,541.72 4,624,900.67 5,386,454.64 141,943,270.03 Asia: China 197,717.10 62,150,467.90 15,686.00 2,630.20 563,391.52 62,929,892.72 India 3,888,272.00 3'"318:,704,003.35 810.00 2,786,025.52345,379,110.87 Japan. 1,344,789.70 500,000.00 ' "6"6,"566."66 101,535.43 598,790.00 2,605,615.13 357,962.50 4,328,179.76 55,100.00 61,500.00 31,250.00 4,833,992.26 Other points Total. 5,788,741.30 405,682,651.01 131,286.00 166,475.63 3,979,457.04 415,748,610.98 Africa 1,598.00 13,330.00 81.00 697.50 250.00 15,956.50 Australasia: Australia 20.00 2,167.50 5,650.00 45,802.87 10,815.88 64,456.25 Java 2,608,639.30 537,500.00 400.00 4,264.20 370,747.00 3,521,550.50 Philippines... Other points 1,220.00 3,727.00 728,985.00 150.00 1,025,022.00 1,759,104.00 Total 2,609,879.30 543,394.50 735,035.00 50,217.07 1,406,584.88 5,345,110.75 Grand total...152,326,976.37 502,756,003.44 166,780,636.72 28,762,254.27 12,627,800.05 863,253,670.85 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Gold imports for the year just ended amounted to 76.5 millions compared with 62 millions for the calendar year 1918, while gold exports aggregated 368.2 millions, compared with 40.8 millions exported in 1918. Net gold exports for 1919 amounted to 291.7 millions, as against net imports of 21.1 millions the year before. The figures for 1919 are, however, exclusive of 173.4 millions of gold received from the Reichsbank for foodstuffs sold to the German Government. This gold is held at present in London with the exception of 42.1 % millions which by arrangement have been delivered in London by the Federal Reserve Banks in place of gold that would otherwise have been withdrawn in the United States for export. Counting the 131.3 millions held on December 31 by the Bank of England for the Federal Reserve Banks as an offset against the net exports above shown, the net loss of gold through transfer abroad is reduced to 160.4 millions. Of the gold imports over three-fourths is credited to Canada, Hongkong, the United Kingdom, and Mexico, while of the gold exports 94.1 millions were consigned to Japan, and over 125 millions to the other Far Eastern countries, i. e., China, Hongkong, British India, Straits Settlements, and Dutch East Indies; 56.6 millions to Argentina, 33 millions to other South American countries, 29.8 millions to Spain, and 10.4 millions to Mexico. Silver imports during 1919 amounted to 89.4 millions, compared with 71.4 millions in 1918, while silver exports during 1919 were about 239 millions compared with 252.8 millions the year before. By far the larger portion of the silver exported in 1919 was consigned to the Far East, British India being credited with 109.2 millions, China with 77.6 millions, and Hongkong with 10.2 millions. The three countries named account for over 80 per cent of the total value of silver shipped to foreign destinations during the past calendar year. Exports of silver to India, which constituted by far the larger portion of the total foreign silver shipments during 1918 and 1919 to September 10, have practically ceased since that date, and have been superseded by large gold shipments to that country during the latter part of the year. The recommendations of the committee now considering Indian currency problems are awaited with interest, as any change in Indian currency arrangements may have an important influence on the movement of money metals to that country. The countries from which gold and silver were received by the United States and to which exports of these metals were made as well as the amounts in each instance, are shown in the following table: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 53 Country. 1 im G po ol r d ts. | ex G p o o ld rts. im S p il o v r e t r s. ex S p il o v r e t r s. Belgium 5831,002 : $31,900 $1,797 ! Denmark.. . : 2,002,666 $684,713 Finland. i 17 438 France 4 152,533 75 524 6 588 197 Gibraltar 2 400 Greece 95,000 Italy • 454, 925 Netherlands 15.000 2,094,084 Norwav. 1 219 430 Portugal . 1,950 Spa^n 29 778 000 228 Sweden . 661 1 194,526 Switzerland 67,570 172 203 United Kingdom—England 4.055, 739 2,091.066 61,746 15,635,386 Canada . . 44', 487,390 5,706,428 ! 7,171,469 7,854,378 Newfoundland... 61 ! 11 Costa Rica 616 583 163,665 Guatemala 29 267 8 5 900 Honduras 258,255 2i.300 2,621,645 205,600 British Honduras 12.000 269,276 Nicaragua. . 1,424,217 16,500 769,921 Panama. . . . 3,401 1.390,000 89, 273 363 250 Salvador 1,140,911 3,124,020 1,555,969 1, 500 Mexico. 4 464 140 10 357,619 63 303,437 1 926 433 Jamaica 1,947 4.639 Trinidad IS, 838 7.940 37 10,328 Other British West Indie? 1,549 2 300 Cuba. . 9 593 82,837 161 Danish West Indies (Virgin Islands of U. S.)... 525 1,105 Dominican Republic 25,000 150 000 Dutch West Indies. . 5,200 300 Argentina 102.721 56,560,000 64,433 3, 867 Bolivia... 2 582 2 500 000 132 785 Brazil 26 200 525 000 2 155 2 498* Chile 233 837 100 000 1 927324 Colombia 556 572 5, 268,620 '271,274 2,656 E cuador. . 379,911 13.670 British Guiana. 139,159 5,005 121 3,193 Dutch Guiana.... 20,144 19,795 265 5 063 Peru 814, 583 3,383,369 8,862, 537 Uruguay. 9,205,000 Venezuela.. 381 981 12 052 220 2 52i 850 000 China 39,109, 769 77 583,367 Chosen (Korea). . 1,714 3,328 Hongkong 10,017, 550 40,085.969 20,000 10, 245,351 Dutch East Indies .. 3 851 075 7, 365, 111 1,773,584 British India 34 300 666 109,180,718 Straits Settlements 4,209,667 Japan 94 114 189 3 946 453 Russia (Asia) 23,000 52, 759 New Zealand 1,354, 578 1.566 Philippine Islands 581,924 102, 500 12,327 British Fast Africa . 240 British South Africa 8,150 76,822 British West Africa 17,777 Portuguese Africa 619,296 68,698 Total.... 76, 534,046 368,185,248 89,410,018 239,021,051 FOREIGN BRANCHES OF AMERICAN BANKS. The operations of American banking corporations principally engaged in international or foreign banking have been extended during the past year and in addition to those to which reference was made in the Board's last annual report, the corporations named below have entered into the necessary agreements with the Federal Reserve Board to permit the purchase of their stock by national banks under the provisions of section 25 of the Federal Reserve Act. The French American Banking corporation is incorporated under the laws of the State of New York. One-half of the stock of this corporation is owned by the Comptoir National D'Escompte of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Paris and the other half is divided equally between the First National Bank of Boston and the National Bank of Commerce in New York. The activities of this corporation are devoted more particularly to the development of trade relations between the United States and France. The Comptoir National D'Escompte has about 200 branches in France and also has branches in Great Britain, Spain and Belgium, and in other countries, besides affiliations with some of the French colonial banks. The Park-Union Foreign Banking Corporation, which is owned jointly by the National Park Bank of New York and the Union Bank of Canada, is especially active in the development of trade between the United States and the Dominion of Canada and of their commerce with the Orient. It has established branches in Yokohama, Tokyo, Shanghai, Paris, San Francisco, and Seattle. The Foreign Credit Corporation, the character of whose business is indicated by its title, is controlled by the Chase National Bank of New York. The Shawmut Corporation was recently organized by the National Shawmut Bank of Boston. No foreign branches have been opened, but an office is maintained in New York City. In the following table are given the names, capital and surplus, and resources of the domestic corporations principally engaged in foreign banking which have filed the necessary agreements with the Board and which number national banks among their stockholders. As of Dec. 31, 1919. Name of corporation. l O aw rg s a n o i f z S ed ta t u e n o d f e — r s C u a a rp p nd l i u ta s l . Re o ( s f h f o i e c u a e r d ) c . es a S i f a n f u r i s b l y t i s i a t i o t u d e r - d i- b F r o an re c i h g e n s. b D r o a m nc e h s e ti s c . tions. American Foreign Banking New York $4,575,000 $46,570,000 9 Corporation, New York City. Mercantile Bank of the Amer- Connecticut 10,000.000 69,000,000 17 s 1 • icas, New York City. Asia Banking Corporation, New York 5,100,000 22,100,000 8 New York City. International Banking Cor- Connecticut 8,500,000 94,428,000 27 1 poration, New York City. Park-Union Foreign Banking New York 2,250,000 12,698,000 4 2 Corporation, New York City. French American Banking do 2,500,000 22,309,000 Corporation, New York City. Foreign Credit Corporation, do 6,000,000 11,410,000 New York City. First National Corporation, Massachusetts... 1,800,000 * 14,736,000 1 Boston, Mass. Shawmut Corporation, Bos- do 2,280,000 23,444,000 1 ton, Mass. i With 26 offices. 1 Includes figures for domestic branch. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 55 It will be noted that these corporations are all organized under State laws. The Federal Reserve Board in two previous reports to Congress recommended that section 25 of the Federal Reserve Act be amended so as to provide for the Federal incorporation of associations solely engaged in international or foreign banking, which would operate under general supervision of the Federal Reserve Board and stock in which might be owned by national banks. This recommendation has been acted upon and provision is made for the Federal incorporation of corporations organized for the purpose of engaging in international or foreign banking and other international or foreign financial operations, as set forth in the act approved December 24, 1919, generally known as the Edge Act. This act contemplates the organization both of corporations to engage in foreign commercial business and of corporations to undertake long-time financing, and in connection therewith to issue securities to be sold to investors. It is expected that some existing corporations and others to be organized will avail themselves of the privileges of this act. The act approved September 17, 1919, amended section 25 of the Federal Reserve Act by permitting the investment by any national bank until January 1, 1921, without regard to the amount of its capital stock and surplus, of not more than 5 per cent of its paid-in capital and surplus in the capital stock of corporations organized under the laws of the United States or any State principally engaged in such phases of international or foreign financial operations as may be necessary to facilitate the export of goods, wares and merchandise from the United States or any of its dependencies or insular possessions to any foreign country. Provision is made also in the so-called Edge Act for the Federal incorporation of financial institutions of this character. The Federal Reserve Board is charged generally with the same duties and responsibilities as to the organization, supervision and liquidation of corporations organized under the new law as those which devolve upon the Comptroller of the Currency in the case of national banks, and it is now engaged in the preparation of rules and regulations governing their operation, as prescribed by the act* The new law authorizes all national banks to invest to the limited extent set forth above in the stock of corporations organized to facilitate export transactions and, through the instrumentality of the corporations, to cooperate with exporters, producers, and manufacturers in extending their connections abroad. Corporations contemplated by the so-called Edge Act will be permitted under the supervision of the Federal Reserve Board to invest in foreign securities of various kinds and to offer their own obligations specifically secured by their foreign collateral to American investors. They will therefore be the means of utilizing private capital in the financing of exports on long Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 AJSTSTUAL REPORT OF THE FEDERAL RESERVE BOARD. credits, not by the commercial banks but through the investment market. More extended reference to the Edge Act is made below under the caption "Law Division." The only national banks operating branches abroad are the National City Bank of New York and the First National Bank of Boston. MEETINGS OF THE FEDERAL ADVISORY COUNCIL. The Federal Advisory Council has held during the year four meetings in Washington as required by section 13 of the Federal Reserve Act, and in addition there was a conference between the executive committee of the Council and the Federal Reserve Board on June 20,1919. The report of the proceedings of the Council and its recommendations will be found in the appendix. The following statement was issued by the Board on June 20, 1919: The Federal Reserve Board had to-day a conference with the executive committee of the Federal Advisory Council (Mr. James B. Forgan, of Chicago, Mr. L. L. Rue, of Philadelphia. Mr. Daniel G. Wing, of Boston, and Mr. W. S. Rowe, of Cincinnati) to consider problems relating to the financing of the f 3reign trade of the United States. There wa3 discussion as to what unusual features attached to this trade and the bearing thereof upon the American banking situation. The Board and the committee of the Council were in entire accord that the matter of providing long-term advances for Europe presented an investment rather than a banking problem and that the necessary funds must therefore come from the investment market. It was. however, the opinion of the conference that as a step toward supporting plans for the financing of our foreign trade it would be well to add a new paragraph to section 25 of the Federal Reserve Act so as to permit national banks until January 1, 1921, without regard to the amount of their capital and surplus, to invest not exceeding in the aggregate 5 per cent of their capital and surplus in the stock of one or more corporations principally engaged in such phases of international or foreign financial operations as may be necessary to facilitate the export of goods from the United States. The Board voted to recommend this legislation to Congress. LAW DIVISION. The general character and scope of the functions of the Law Division were set forth in the Board's last annual report. Although it is unnecessary to restate these activities in detail certain features of the current work of the Law Division should be mentioned. State laws.—Under the terms of the Federal Reserve Act, State banks and trust companies which become members of the Federal Reserve System retain their full charter and statutory rights and, subject to the provisions of the Federal Reserve Act and the regulations of the Board, are permitted to continue the exercise of all corporate powers granted to them by the States in which they were organized. Because of the lack of uniformity in the laws of the 48 States the Law Division is frequently called upon to analyze those laws in so far as they affect the operations of banks and trust com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 57 panies and to render opinions defining their scope and effect in various cases presented to the Board for consideration. The Law Division has had the very helpful cooperation of the counsel for the several Federal Reserve Banks in the preparation of those analyses of the State laws which have from time to time been published in the FEDERAL RESERVE BULLETIN. During the past year the general enabling act prepared by the Law Division and recommended by the American Bankers' Association for enactment by State legislatures has been adopted in slightly different forms by the legislatures of seven States. The purpose of this act is to aid in effecting the standardization of State banking laws and a coordination of Federal and State banking powers. A number of State legislatures other than the seven above referred to have enacted laws which include the substance of some of the recommendations embodied in the enabling act. The Law Division has also endeavored to keep up to date its file of State laws affecting banking and other related subjects. These laws and opinions of State officials or State courts construing them have from time to time been published in the BULLETIN. Membership of State banks and trust companies.—During the past year the Board has approved 280 applications of State banks and trust companies for membership in the Federal Reserve System. Each of these applications is first submitted to the Law Division for its consideration and report. This involves an examination of the application itself and the various exhibits accompanying it in order to determine whether the bank is technically eligible for membership and whether under the terms of the State law it possesses any unusual dowers which should be restricted by the Board in its conditions of membership. Trust 'powers of national banks.—Under the terms of section 11 (Jc) of the Federal Reserve Act the Board is authorized to permit national banks to exercise trust powers when not in contravention of State or local law. During the past year 509 national banks have been granted trust permits under the terms of this section (372 of these were original applications and the remaining 137 were supplementary).. The application of each of these banks has been examined by the Law Division. As a result of the amendment of September 26, 1918, making certain State laws applicable to the exercise of trust powers by national banks, many intricate questions of law and policy have arisen in connection with the approval of applications submitted to the Board under the terms of section 11 (k). These questions are referred to the Law Division for its report before final action is taken by the Board. A new set of regulations governing the exercise of trust powers by national banks necessitated by the amendment to section 11 (Jc) above referred to, has been prepared and issued by the Board. Clayton Antitrust Act.—Since the issue of its last report, the Board Digitized fohr FaRs AreScEeRi ved and considered 281 applications presented to it under the http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. so-called Kern amendment to section 8 of the Clayton Antitrust Act, relating to interlocking bank directorates. These applications have in each case been investigated and reported upon by the Law Division. In addition to those applications which are received by the Board the Law Division has also investigated many cases of alleged violations of the law to which its attention has been called by reports of national bank examiners. In such cases the directors involved have been requested either to resign from the banks coming within the inhibitions of the Clayton Act or to file a formal application with the Board for its consent to continue to serve on the banks concerned under the provisions of the Kern amendment. Opinions and rulings.—The Law Division is required constantly to pass upon questions and to prepare memoranda involving the interpretation of the Federal Reserve Act, the National Bank Act, the Negotiable Instruments Law, and the laws of the several States relating to the operations of national banks and State banks or trust companies which have become members of the Federal Reserve System and also to draft rulings denning the proper application of the law or the regulations of the Board to specific cases arising in the administration of the Federal Reserve Banks or in the operations of their member banks. Such of these opinions or rulings as are of general interest to member banks are published each month in the BULLETIN, The Law Division has recently undertaken the preparation of a codification of all the opinions and rulings of the Board which are now in force. It is believed that this codification, when complete, will be of great assistance in the administration of the reserve banks and their members. AMENDMENTS TO THE FEDERAL RESERVE ACT. The Federal Reserve Act has been amended three times during the past year. Each of these amendments, which will be discussed in order, was recommended by the Federal Reserve Board, and the Law Division, under the directions of the Board, assisted in the preparation of each of the bills presented. By an act approved. March 3, 1919, sections 7, 10, and 11 of the Federal Reserve Act and section 5172 of the Revised Statutes were amended as follows: Section 7 was amended so as to provide that the net earnings of the Federal Reserve Banks shall be paid into a surplus fund until that fund amounts to 100 per cent of the subscribed capital and thereafter 10 per cent of the net earnings shall be paid into the surplus fund and the balance shall be paid to the United States as a franchise tax. Previously the maximum surplus provided for was 40 per cent of the paid-in capital. That part of section 10 which made members of the Board ineligible to hold office, position, or employment in a member bank during the time they are in office and for two years thereafter, was amended so as to provide in substance that no Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 59 appointive member shall be thus ineligible after completing his full term of office. Section 11 was amended by the substitution of a new subsection (m). This amendment authorizes the Federal Reserve Board upon the affirmative vote of not less than five of its members, to permit Federal Reserve Banks to discount for any member bank the paper bearing the signature or indorsement of any' one borrower in excess of the amount theretofore permitted by sections 9 and 13 of the Federal Reserve Act, but in no case to exceed 20 per cent of the member bank's capital and surplus. It is provided, however, that all of the paper discounted for any member bank in excess of the amount theretofore permitted by law shall be secured by not less than a like face amount of bonds or notes of the United States issued since April 24, 1917, or by certificates of indebtedness of the United States. This amendment, which is designed to broaden the discount powers of the Federal Reserve Banks to correspond to the lending power of the national banks as enlarged by the act of September 24, 1918, lapses after December 31, 1920. Section 5172 of the Revised Statutes also was amended by the act approved March 3, 1919, so as to authorize the issue of national-bank notes in denominations of $500 and $1,000 and to permit these notes to be attested by the written or engraved signatures of the president or vice president and cashier of the national bank which issues them. In view of the fact that Federal Reserve Banks are permitted under the terms of section 18 of the Federal Reserve Act to issue Federal Reserve bank notes under the same terms and conditions that are applicable to the issue of national bank notes, this amendment relates to Federal Reserve Banks as well as to national banks. By permitting the signatures of the officers of the issuing bank to be engraved on the notes before they are delivered much inconvenience and expense incident to the issue of the notes will be avoided. By an act approved September 17, 1919, section 25 of the Federal Reserve Act was amended so as to permit any national banking association, until January 1, 1921, without regard to the amount of its capital and surplus, to apply to the Federal Reserve Board for its permission to invest an amount not exceeding in the aggregate 5 per cent of its capital and surplus in the stock of one or more corporations chartered or incorporated under the laws of the United States or of any State thereof and principally engaged in such phases of international or foreign financial operations as may be necessary to facilitate the export of goods, wares, or merchandise. Before this amendment any national banking association possessing a capital and surplus of $1,000,000 was permitted to invest in the stock of corporations principally engaged in international or foreign banking or banking in a dependency or insular possession of the United States. 178983—20 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

60 AXXUAL REPORT OF THE FEDERAL RESERVE BOARD. There was some doubt, however, whether the law would authorize a national bank to invest in a corporation engaged in financial operations other than those strictly defined as commercial banking operations. Under the terms of this amendment a national bank, regardless of the amount of its capital and surplus, may invest in the stock of a corporation principally engaged in a foreign investment business, whether organized under State or Federal law. This 5 per cent limit was changed by the enactment of section 25 (a) r discussed below, so far as corporations organized under Federal law are concerned. By an act approved December 24, 1919, commonly known as the Edge Act, section'25 of the Federal Reserve Act was amended b}^ the addition of a subsection (a). This amendment provides for the Federal incorporation of institutions for the purpose of engaging in international or foreign banking or in other international or foreign financial operations. By the enactment of this amendment Congress has provided for the Federal incorporation of that character of institutions in which it had previously authorized national banks to invest. Without the enactment of this Federal incorporation law, however, national banks could organize their foreign banking corporations only under State laws, although it was apparently contemplated in section 25 as amended on September 7, 1916, that they should be permitted to invest in the stock of corporations organized under either Federal or State law. Thus by the amendment approved December 24, 1919, Congress has completed the machinery designed in its earlier acts, and national banks may now under the terms of section 25 (a) of the Federal Reserve Act, regardless of the amount of their capital and surplus, invest in the stock of a corporation organized under Federal law, either for the purpose of engaging in international or foreign banking or for the purpose of engaging in other international or foreign financial operations. It is provided under section 25 (a) that no national bank may invest in the aggregate more than 10 per cent of its capital and surplus in the stock of corporations doing a foreign business. It should be noted, however, that although the amendment to section 25, approved September 17, 1919, heretofore discussed, limits the aggregate amount of the investments of any one national bank in the stock of corporations engaging in foreign financial operations (as distinct from foreign banking operations) to 5 per cent of its capital and surplus, nevertheless under the terms of section 25 (a) a national bank may invest as much as 10 per cent of its capital and surplus in any corporation organized under that section, even though engaged in the foreign investment business, provided that the aggregate of all investments made by that national bank under the terms of section 25 and section 25 (a) do not exceed 10 per cent of its capital and surplus. In effect, this permits Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 61 a national bank to make a larger investment in a corporation organized under the terms of section 25 (a) for the purpose of engaging in foreign financial operations than in a similar corporation organized under State law. It is contemplated under the terms of the law that any corporation in which a national bank makes an investment and any corporation organized under the provisions of section 25(a), whether or not a national bank is an investor in its stock, shall operate under rules and regulations to be prescribed by the Federal Reserve Board. A draft of these regulations is now in preparation. Other amendments.-—There have been certain other acts of Congress enacted during the past year, which, though not amending the Federal Reserve Act, are of general interest to banks. One of these is an act approved December 24, 1919, which was recommended by the Federal Reserve Board and which provides that gold certificates of the United States, payable to bearer on demand, shall be a legal tender in payment of all debts and dues, public and private. The purpose of this legislation was to give to gold certificates the same legal-tender qualities as attach to gold which they represent and for which in substance they are a warehouse receipt issued by the Government and payable to bearer on demand. Another act of interest to member banks is the act approved October 22, 1919, amending section 5200 of the Revised Statutes so as to permit a national bank to lend to any one borrower in excess of 10 per cent of its capital and surplus, but not to exceed 25 per cent, provided that the loans over and above 10 per cent are represented by notes secured by shipping documents, warehouse receipts, or other such documents conveying or securing title covering readily marketable, nonperishable staples, including live stock; and provided further, that the actual market value of the property securing the obligation is not at any time less than 115 per cent of the face amount of the loan; and provided further, that the property is fully covered by insurance. It is specified in the act, however, that this privilege of lending in excess of 10 per cent of the bank's capital and surplus upon notes secured in the manner described, shall not apply to any' one borrower for more than six months in any consecutive 12 months. The same act amended section 5202 of the Revised Statutes by excepting from the limitations upon the amount for which any national bank may be liable at any one time those "liabilities created by the indorsement of accepted bills of exchange payable abroad, actually owned by the indorsing bank and discounted at home or abroad." This amendment does not increase the lending power of the Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

62 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. FIDUCIARY POWERS. Applications for permission to exercise fiduciary powers under the Federal Reserve Act as amended September 26, 1918, continue to be received and passed upon by the Board. It is the practice of the Board in each instance, before granting permission for the exercise of fiduciary powers, to satisfy itself that the bank making application is in good condition and standing and its management safe and capable. During the year 372 original and 137 supplemental applications have been approved. The total number of banks now holding permits is 1,074, a list of which, with the powers granted, appears in the appendix. BOARD'S ORGANIZATION, STAFF, AND EXPENDITURES. The general readjustment in practically all branches of commercial and governmental activities during the past year has been reflected n an unusual number of changes in the organization and staff of the Board. Early in the year Mr. Strauss, vice governor of the Board, spent about two months in France in an advisory capacity for the Treasury Department in connection with financial questions coming up for discussion at the peace conference. In February Mr. L. C. Adelson, assistant secretary of the Board, resigned to become deputy governor of the Federal Reserve Bank of Atlanta. On March 1 Mr. Geo. L. Harrison, formerly assistant counsel, was appointed general counsel of the Board to succeed Mr. M. C. Elliott, who since the organization of the Board had served as its principal counsel and who resigned to resume the general practice of law, although continuing temporarily as consulting counsel of the Board. During the summer the work of the Division of Foreign Exchange, which had its headquarters in New York, was practically completed, Mr. F. I. Kent, director, resigned, and the employees of the division were released. Mr. J. E. Crane became acting director in charge of the remaining activities of that division. Mr. J. A. Broderick, who had been chief examiner and chief of the division of audit and examination since the organization of the Board in 1914, and also secretary of the Board since September, 1918, tendered his resignation to become effective September 1, 1919. At this time a reassignment of duties was decided upon by the Board and the following appointments were made: Mr. W. T. Chapman, secretary; Mr. R. G. Emerson, assistant secretary; Mr. W. W. Hoxton, executive secretary; and Mr. W. W. Paddock, chief of the Division of Operations and Examination. Mr. Henry A. Moehlenpah was appointed a member of the Board by the President, and took office on November 10, to fill the unexpired Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 63 term of Mr. F. A. Delano, whose resignation to enter military service abroad was noted in the last annual report. The total cost of conducting the w^ork of the Board during the year 1919, including salaries of members, expenses involved in printing and circulating the BULLETIN, and the cost of operating the Division of Foreign Exchange was $558,560.61. During the year two assessments were levied against the Federal Reserve Banks aggregating $594,668.63, or approximately 412 thousandths of 1 per cent of their average paid-in capital and surplus for the year. Further details relating to the operations of the Federal Reserve Board, and the annual reports of the Federal Reserve Agents, appear as exhibits in the appendix. PERMANENT QUARTERS FOR THE BOARD AND ITS STAFF, Ever since its organization the Federal Reserve Board, although it is not a Treasury bureau but an independent establishment, has had its headquarters in the Treasury Building, the Secretary of the Treasury being authorized by a clause in section 10 of the Federal Reserve Act "to assign offices in the Department of the Treasury for the use of the Federal Reserve Board." There is nothing in the act, however, that makes such assignment obligatory upon the Secretary of the Treasury or that requires the Board to be located in the Treasury Building. Members of the Board have been provided with rooms for their own use, and during the first two years of operation quarters in the Treasury Building were allotted to the Board for the use of its entire staff. The development of the Federal Reserve System and the continuous increase in the volume of the Board's wrork have made new divisions necessary. The number of the Board's officers and employees has increased from 66 on January 1, 1916, to 324 on December 31, 1919. Owing to the great expansion of its own business the Treasury Department has been obliged to remove many of its bureaus from the Treasury Building. While the Treasury authorities have shown a most accommodating spirit, it has been impossible for them to allot to the Board anything like the space required for the proper organization and efficient conduct of its work. Consequently arrangements had to be made to take care of some of the Board's divisions outside of the Treasury Building, so that there are now located in that building only the offices of the Board members, their secretaries and stenographers, a small- room for meetings of the Board, which is entirely inadequate and unsuitable for the frequent hearings and conferences which must be held, the office of the Secretar}^ of the Board, the office of the General Counsel, and the Gold Settlement Division, which is located on the floor above the other rooms used by the Board. The important Division of Reports and Statistics is located in the Southern Building, two squares from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

64 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. the Treasury, in rooms held without lease for an indeterminate period. The Division of Operations and Examination is located in the National Metropolitan Bank Building, as is also the Board's assembly room where are held its conferences with the Federal Advisory Council, the Governors of the Federal Reserve Banks, and with the Federal Reserve Agents, and also its public hearings. The Division of Analysis and Research is in New York City. The physical separation of the Board's working force in this manner militates against good organization and efficient operation. The inconvenience occasioned has been accepted cheerfully as unavoidable because of conge?ted conditions. The time has come, however, when provision should be made for the housing of the Board and its employees under one roof. In making arrangements consideration should be given to the relations of one division to another in order that the business may be conducted with the maximum smoothness, promptness, and efficiency. Each division should have sufficient space to allow for continued growth and for the installation of necessary modern office equipment, including an adequate filing system and essential vault facilities. Quarters suitable for the Board's purposes can not be secured by lease, and while amounts required for the payment of rentals can be included in the assessments which the Board is authorized to levy semiannually upon the Federal Reserve Banks, it appears that specific authority is necessary to enable the Board to levy an assessment upon the banks for the funds required for the construction of a building suitable for its use. The Board recommends, therefore, that Congress authorize the Board to levy an assessment upon the Federal Reserve Banks or the funds necessary to provide adequate and permanent quarters. The acquisition of a site and the preparation of plans will require a considerable time. The Board would not, however, expect to begin construction work until conditions for building are more favorable. BRANCHES OF NATIONAL BANKS. The Board has on several occasions recommended to Congress that the Federal Reserve Act be amended so as to permit national banks under certain conditions to establish branches within the corporate limits of /the cities in which they are located. Under the present law national banks can not afford the same facilities to the public as are given by State banks having branches, except in cases where State banks and trust companies operating branches have merged with national banks, when existing branches may be continued by the national banks. The Senate has passed a bill authorizing national banks located in cities of not less than 500,000 inhabitants and having a capital and surplus of $1,000,000 or more to establish branches not exceeding 10 in number within the corporate limits of the cities in which they are located, provided tha law« of the State extend a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 65 similar privilege to banking institutions operating under State charters. While the Board, would prefer to have this privilege extended to national banks in cities of not less than 100,000 inhabitants, or, failing that, have the population limit raised to 200,000. it wishes to point out that the limit fixed in the Senate bill does not affect the principle involved, and it therefore respectfully recommends once more that national banks be permitted to establish branches in the cities in which they are located under such limitations as in the wisdom of Congress may be deemed desirable. FEDERAL RESERVE NOTES AND CREDIT EXPANSION. On December 27, 1918, Federal Eeserve notes in actual circulation amounted to $2,685,244,000. As the result of the return of notes to the banks after the seasonal demands for currency had slackened, the volume in circulation had been reduced by February 7, 1919, to $2,454,165,000. Notwithstanding the expansion of credit incident to the notation of the Victory loan in May, there was no appreciable increase in the volume of Federal Reserve notes until the crop movement became general in August. The increase in note circulation between February 7 and August 1 was only $52,655,000. The peak of Federal Reserve note circulation was reached on December 26, 1919, on wThich date the amount in actual circulation was $3,057,646,000, the increase for the year, as compared with the high point attained by Federal Reserve note circulation in the year 1918, having been $372,402,000. Indeed the increase in Federal Reserve note circulation must be regarded as moderate and as an incident of the general credit expansion and as having clearly been occasioned by crop moving and other seasonal needs—among which the requirements of the extraordinary holiday trade of the year just closed held an important place. Moreover this expansion of Federal Reserve note circulation was accompanied by a reduction of $155,542,000 in other money in circulation outside the Treasury and the Federal Reserve Banks, of which about 140 millions represents the amount of gold withdrawn from use, presumably for shipment to foreign countries. A general idea of the degree of expansion in banking operations during the last four months of the year 1919 as compared with the same period in the year 1918 may be gained from a comparison of total debits against individual accounts (all deposit accounts except those of other banks) reported by banks in about 140 leading cities for corresponding weeks in the two years. The figures for the New York banks are presented separately and are included also with those for the other centers. The separate figures for New York reflect to a considerable extent changes in the volume of stock exchange transactions; thus, for example, the appreciable increases in the New York figures early in November, 1919, were caused by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

66 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. the activity of the stock market and the large volume of share transactions. Tax payments are effected chiefly in the large centers, and consequently the increase in the total debits reported about the middle of September, 1919, as compared with the corresponding period in 1918, as well as with the weeks immediately preceding, is much more pronounced in New York City and in other large financial centers than in smaller financial communities. It will be seen from the table which follows this paragraph that for the period including August 21 to December 31, 1919, totals reported by the New York banks show an increase over the figures for the same period in 1918 about twice as great as the increase in corresponding totals for the other cities. The number of banking centers which have reported to the Board in both years varies from week to week, and in order to test the validity of conclusions based upon the changes indicated in Table A an exhibit has been added giving total debits for 36 of the larger centers, including New York, for which comparative data are available for the entire period in both years. It will be seen that the changes for the corresponding weeks in the two years and in the totals for the period under review do not differ essentially from those indicated in the last column of Table A, and that if the figures for New York are eliminated from those shown in Table B, a comparison of the 1918 and 1919 totals for the 36 cities with the average of about 140 cities in Table A leads to practically the same conclusion. TABLE A.—Debits to individual account as reported by clearing-house banks in leading' cities for each week beginning with the week ended Aug. 27, 1919, and JOT each corresponding week in 1918. [In millions of dollars.] New York City. All other reporting centers. Totals for all reporting centers. Per Per Per cent Num- cent Num- cent Week ending— in- ber in- ber in- 1919 1918 crease centers 1919 1918 crease centers 1919 1918 crease 1919 in- 1919 in- 1919 over cluded. over cluded. over 1918. 1918. 1918. Aug. 27-281 . , 4,253 3,085 37.9 110 3,170 2,658 19.3 Ill 7,423 5,743 29.2 Sept. 3-4 3,434 2,998 14.5 118 2,981 2,529 17.9 119 6,415 5,527 16.1 Sept 10-11 4,214 3,513 20.0 121 3,594 2,826 27.2 122 7,808 6,339 23.2 Sept. 17-18. 5,394 3,015 78.9 132 4,341 3,298 31.6 133 9,735 6,313 54.2 Sept. 24-25 4,993 3,077 62.3 141 3,775 3,219 17.3 142 8,768 6,296 39.3 Oct. 1-2.. 5,366 3,831 40.1 140 3,833 3,373 13.6 141 9,199 7,204 27.7 Oct. 8-9 5,414 3,407 58.9 141 4,159 3,306 25.8 142 9,573 6,713 42.6 Oct. 15-16 4,680 3,454 35.5 143 4,066 3,409 19.3 144 8,746 6,863 27.4 Oct. 22-23. 5,712 4,222 35.3 142 4,563 3,758 21.4 143 10,275 7,980 28.8 Oct. 29-30 5,713 4,820 18.5 140 4,133 3,774 9.5 141 9,846 8,594 14.6 Nov. 5-6 5,438 3,459 57.2 142 4,453 3,379 31.8 143 9,891 6,838 44.7 Nov. 12-13. 6,314 3,779 67.1 141 4,416 3,618 22.1 142 10,730 7,397 45.1 Nov. 19-20 6,028 4,053 48.7 143 5,021 4,034 24.5 144 11,049 8,087 36.6 Nov. 26-27 5,365 4,160 29.0 143 4,657 4,035 15.4 144 10,022 8,195 22.3 Dec. 3-4 5,047 3,608 39.9 145 4,473 3,496 27.9 146 9,520 7,104 34.0 Dec. 10-11 5,069 3,700 37.0 146 4,394 3,690 19.1 147 9,403 7,390 28.0 Dec. 17-18. 5,784 3,816 51.6 146 5,187 3,831 35.4 147 10,971 7,647 43.5 Dec. 24 5,591 3,501 59.7 146 4,836 3,445 40.4 147 10,427 6,946 50.1 Dec. 31 5,389 3,563 51.2 147 4,398 3,341 31.6 148 9,787 6,904 41.8 Total 99,198 69,061 43.6 80,450 65,019 23.7 179,648 134,080 34.0 Digitized for FRASER 1 The second date represents the end of the corresponding week in 1918. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 67 These figures, however, throw very little light upon the relative importance of the several factors responsible for the larger volume of bank transactions during the past year. It will be difficult to determine what proportions of the increased volume of bank transactions may be ascribed to the higher price level, to the larger turnover of merchandise bought and sold, and what proportion, if any, is due to greater physical volume of goods in trade. It is evident that the increase in the price level—wholesale prices for 1919 averaging about 8 per cent higher than in 1918—is not great enough to account for the increase of over 20 per cent in the volume of bank transactions outside of New York City, and it is reasonable to assume that to the other factor mentioned, viz, the larger turn-over owing to the greater volume of speculative dealings, must be ascribed much of the increase in the volume of bank transactions shown in the tables. TABLE IS.—Aggregate debits to individual account as rreeppoorrtteedd bbyy 3366 leading cities ((iinncclluuddiinngg NNeevvjj YYoorrkk CCiittyy)) ffoorr wwhhiicchh ffiigguurreess aarree aavvaaiillaabbllee ffoorr eeaacchh week beginning v:iillhh tthh e iveekk enddedd AAu g. ii**77, 11991199, as wellll as JJo r eachh corresponddinig week in 1918. [In millions of dollars.] Per cent Week ending— 1919 1918 1 in 91 c 9 re o a v se er 1918. Aug. 27-28 1 6,903 5,324 29.7 Sept. 3-4 5,883 5,092 15.5 Sept. 10-11 7,125 5,769 23.5 Sept. 17-18 8,872 4,607 92.6 Sept. 24-25 . .. 7,953 5,567 42.9 Oct. 1-2 8,355 6,475 29 0 Oct 8-9 . 8,522 5,879 45.0 Oct. 15-16 7,699 5,993 28.5 Oct. 22-23 9,145 7,032 30.0 Oct. 29-30 8,830 7,685 14.9 Nov. 5-6 . . 8,650 5,875 47.2 Nov. 12-13 9,434 6,363 48.3 Nov. 19-20 9,659 6,919 39.8 Nov. 26-27 8,726 7,000 24.7 Dec. 3-4 8,215 6,087 35.0 Dec. 10-11 8,177 6,297 29.9 Dec. 17-18 9,548 6,519 46.5 Dec. 24. ... 9,055 5,936 52.5 Dec. 31 8,498 5,880 44.5 Total 159,249 116,299 37.4 1 The second date represents the end of the corresponding week in 1918. DISCOUNT POLICY AND CREDIT CONTROL. The experience of the past three years has demonstrated the expansive power of the Federal Reserve System. It should be understood, however, that an elastic system of reserve credit and note issue implies capacity to control and the ability to curtail credit. The ability of the system to check expansion under present circumstances and to induce healthy liquidation is now to be tested. Owing to the abnormal ease of money throughout the year 1915 and during the greater part of the year 1916 the Board had little opportunity to test the efficiency of what it conceived to be the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

68 ANXUAL REPORT OF THE FEDERAL RESERVE BOARD. correct discount policy. The principle had been adhered to consistently that the Federal Reserve Banks should not encourage rediscounting by members for the sake of profit, but that their own resources should be kept liquid and their reserve position strong. Although section 5202 of the Revised Statutes, which provides that no national banking association shall at any time be in anyway liable for borrowed money to an amount exceeding the amount of its capital stock, had been amended by excepting liabilities incurred under the provisions of the Federal Reserve Act, it was not contemplated by the Board that the member banks would, except to meet seasonal requirements or emergencies, avail themselves of this amendment in order to extend their rediscount lines beyond the original limitations. It was the Board's view also that as a rule the discount rates of the Federal Reserve Banks should be higher than current market rates, thus offering no incentive to member banks to rediscount for the sake of making a profit in the transaction. Because of this policy and of the conditions which prevailed up to the time when it began to appear that the United States would be drawn into the war, the reserve position of the Federal Reserve Banks was so strong as to suggest an analogy between the system and a safe-deposit vault. In his address to Congress, urging the declaration of a state of war with Germany, the President pledged all the resources of the Nation— which, of course, include its man-power, money, credit, and goods— to the successful conduct of the war. By an overwhelming vote the Congress of the United States carried out the recommendations of the President, thus committing the country to the principles and policies outlined in his address. Normal policies had to be subordinated, just as private business was subordinated, to Government business, and discount rates were of necessity fixed with the primary object of assisting the Treasury operations. How effective this policy was is now a matter of history. As has already been pointed out, the Federal Reserve Banks became great bond-distributing organizations; firms and corporations, large and small, men and women in every walk of life, were urged to subscribe for bonds, and the credit facilities of the Federal Reserve Banks were placed at the disposal of member and nonmember banks in order that they might lend freely on bonds for which the subscribers were unable to pay. The public was urged to borrow and buy, and it w^as found after the close of the Victory loan in May, 1919, that more than 20,000,000 subscriptions had been received in response to this appeal. But in addition to the appeal to borrow and buy there was also added the injunction to save and pay. To assist this process, during the 18 months when the war was in progress there was established a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL KEPORT OF THE i'EDEKAL RESERVE BOARD. 69 rigid control of such credits as were not essential, directly or indirectly, to the prosecution of the war, and the American people proved their ability to economize and to cooperate in the nation-wide policy of conservation. As a result of this control of nonessential credits, and of the cooperation of the banks and the public, the Treasury was able to float within a period of two years $25,000,000,000 of interest-bearing obligations without reducing the reserves of the Federal Reserve Banks below a point which in normal pre-war times would have been regarded as a very strong reserve for a central bank. The combined reserves of the 12 Federal Reserve Banks on January 3, 1919, amounted to 51.3 per cent of their liability for deposits and note issues. Due partly to the gold embargo, this percentage was well maintained during all the period of uncertainty which preceded the flotation of the Victory loan and for some time thereafter, for not until July 9, after the gold embargo had been removed, did the reserves fall even fractionally below 50 per cent. On September 26 the reserves stood at 51 per cent, after which date they show a steady and continuous decline to 44.8 per cent on December 26. Although the period of war financing did not terminate with the year 1918 and the Federal Reserve System was consequently under the continued strain of war finance, that strain had to be met without the aid of war restrictions. The safeguards afforded by these restrictions were removed, for it was impracticable to continue them in time of peace. There is no longer an embargo on exports of gold nor any regulation or control of foreign exchange, with the trifling exceptions already noted; the controls set up over exports and imports, production and consumption, with a view of conserving the national resources and reducing waste, have practically disappeared. As a result the problems of the Federal Reserve System have been greatly increased, more particularly the problem of controlling credit. The Federal Reserve System has met the requirements of war and readjustment by expanding without, however, encroaching upon its legal reserves; it is capable, if need be, of expanding still further without having recourse to the emergency provisions of the act, and very much further by availing itself of those provisions. But the time has come for it to demonstrate its power to move in the opposite direction, and to prove its ability to do so without shock and with a minimum disturbance of business and industry. Fortunately the condition of the Treasury is such that the Board can now feel free to inaugurate discount policies adjusted to peacetime conditions and needs. The large volume of Government bonds looking for permanent ownership during the year was, however, an important factor in the situation and retarded the adoption of a normal discount policy. Until the absorption of Liberty bonds is fairly complete the Federal Reserve System will be in a transition Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

70 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. stage and normal banking policies can not be made entirely effective. The absorption by investors of Government bonds, as indicated by the figures cited earlier in this report, is a gratifying step in this direction. It should, however, be repeated that the time has come for the system, in the interest of commerce and business, to exercise ts power to regulate and control the credit situation. The normal and traditional method of credit control has been the discount rate; its efficacy, however, presupposes normal conditions. An advance in rate operates under normal conditions not only to diminish the demand for credit by making certain activities unprofitable but as well to increase the supply of credit by attracting it from other centers or countries. The conditions that make this traditional control effective do not all exist at the present time. The United States stands almost alone as an important free gold market. Other countries are seeking and have obtained large credits m the United States, as is evidenced by the fact that our exports exceeded imports during the year by about four billions of dollars, and we have paid our adverse balances in gold. It should be recognized that credits extended to Europe create a demand for commodities that competes with the domestic demand and this competition is one of the potent causes of high prices. The demand for commodities from domestic as well as foreign sources is so far in excess of the supply that the increased cost of credit due to an advance in rates is absorbed in the price, and speculation, anticipating large profits, is not checked by any reasonable advance in rates of interest. These conditions are all adverse to an easy and effective operation of credit control by means of discount rates. Nevertheless, the discount rate is an indispensable factor in the regulation and control of credit. When there are legal limitations on the rates member banks may charge, a high reserve bank rate has a restraining influence upon them and upon their customers. Although there are no specific limitations imposed upon the amount of borrowings by member banks at the Federal Reserve Banks, there is a potential limitation provided for in the act. In that part of section 4 which relates to the duties of the board of directors of a Federal Reserve Bank there is the following: "Said board shall administer the affairs of said bank fairly and impartially and without discrimination in favor of or against any member bank or banks and shall, subject to the provisions of law and the orders of the Federal Reserve Board, extend to each member bank such discounts, advancements, and accommodations as may be safely and reasonably made with due regard for the claims of other member banks." Should all the member banks of a Federal Reserve Bank be borrowers, and should all ask for accommodations proportionate to those which may have been advanced to a few, the Federal Reserve Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 71 would not be able out of its own resources to meet the demand. Therefore it is possible to determine theoretically what a fair line of accommodation for any member bank would be; that is, what amount of accommodation can be granted " safely and reasonably :* * * with due regard for the claims of other member banks." Any attempt, however, to control credit by the application of this rule is subject to serious administrative difficulties. If the paper offered is eligible and good, it would be better for a reserve bank to grant accommodation at a price rather than to refuse it entirely, but the act, subdivision (d), section 14, provides that a Federal Reserve Bank shall have power to establish from time to time, subject to review and determination of the Federal Reserve Board, rates of discount to be charged by the Federal Reserve Bank for each class of paper, which shall be fixed with a view of accommodating commerce and business. There is no authority, however, for establishing graduated rates based upon the total borrowings of a member bank, and consequently when it becomes necessary to advance the discount rate in order to curb the demands of those banks rediscounting with the Federal Reserve Banks in very large amounts, the same rate would have to apply to the moderate requirements of other member banks who may rediscount with the Federal Reserve Banks infrequently and never excessively. Thus the application of rate advances as a corrective or deterrent to certain banks tends to raise the level of current rates to all. The Board, therefore, recommends to Congress that an additional power be granted it, by adding to subdivision (d), section 14, a proviso that each Federal Reserve Bank may, with the approval of the Federal Reserve Board, determine by uniform rule, applicable to all its member banks alike, the normal maximum rediscount line of each member bank and that it may submit for the review and determination of the Federal Reserve Board graduated rates on an ascending scale to apply equally and ratably to all its member banks rediscounting amounts in excess of the normal line so determined. In this way, in the opinion of the Board, it would be possible to reduce excessive borrowings of member banks and to induce them to hold their own large borrowers in check without raising the basic rate. The Federal Reserve Banks would thus be provided with an effective method of dealing with credit expansion more nearly at the source than is now practicable and without unnecessary hardship to banks and borrowers who are conducting their affairs within the bounds of moderation. The expansion of credit set in motion by the war must be checked. Credit must be brought under effective control and its flow be once more regulated and governed with careful regard to the economic welfare of the country and the needs of its producing industries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Deflation, however, merely for the sake of deflation and a speedy return to "normal"—-deflation merely for the sake of restoring security values and commodity prices to their prewar levels without regard to other consequences, would be an insensate proceeding in the existing posture of national and world affairs. It must never be forgotten that productive industry is profoundly affected by credit conditions. Modern business is done on credit One of its life-giving principles is credit. The mood and temper of the business community are deeply affected by the state of credit and may easily be disturbed by ill-considered or precipitate action. A system of credit control must always be judged by what it does to maintain a healthy condition of mind on the part of all sections and classes of the producing community. The ultimate test of the functioning of a credit system must be found in what it does to promote and increase the production of goods. True in general, the truth of this observation deserves to be particularly emphasized in the present deranged state of world industry and world trade when production is the crying need of the hour everywhere. Too rapid or too drastic deflation would defeat the very purpose of a well-regulated credit system by the needless unsettlement of mind it would produce and the disastrous reaction that such unsettlement would have upon productive industry. Radical and drastic deflation is not, therefore, in contemplation^ nor is a policy of further expansion. Either course would in the end lead only to disaster and must not be permitted to develop. The credit situation in the United States is at bottom sound and safe. Our economic and financial position is essentially strong. There need be no occasion for apprehension as to our ability to effect the transition from war-time to peace-time conditions if reasonable safeguards against the abuse of credit are respected. There is, however, no need for precipitate action or extreme measures. Extremes must be avoided, the process of adjusting the volume of credit to a normal basis should be effected in an orderly manner, and its rapidity must be governed by conditions and circumstances as they develop. Much will depend upon the cooperation of the business and general community. Indeed without such cooperation progress can be neither rapid nor substantial. Much will depend also upon the rapidity with which the unabsorbed portion of the outstanding issues of war securities passes into the hands of permanent holders. As the national debt is thus absorbed and as it is reduced through the operation of the sinking fund, the loan accounts of the banks should be reduced correspondingly until the proper balance between the volume of credit and the volume of concrete things, which credit helps to produce and which are the normal basis of credit, is restored. This equilibrium, it can not be too frequently or too emphatically stated, can be restored Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. 73 only by speeding up the processes of production, by the orderly distribution of goods, by the avoidance of wasteful consumption, and by the increased accumulation of savings. These are the fundamental economic processes upon which the proper functioning of the Federal Reserve Banks must depend. The Federal Eeserve System can do much to assist these processes but it can not of itself and alone compel them. Efficacious action along these lines involves the intelligent and earnest cooperation of the business and general community. While the Federal Reserve Board will always be mindful of the interdependence of credit and industry and of the influence exerted on prices by the general volume of credit, the Board nevertheless can not assume to be an arbiter of industry or prices. Its primary duty, as the guardian of the Nation's ultimate banking reserve, is to see that the banks under its supervision function effectively and properly as reserve banks. By direction of the Federal Reserve Board. W. P. G. HARDING, Governor. The SPEAKER OF THE HOUSE OF REPRESENTATIVES. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBITS. 178983—20 6 75 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Exhibit A.—DISCOUNT RATES. No. 1.—Discount rates (high and low) in force during the period from Nov. 16, 1914, to Dec. 31, 1919. MATURITIES. Secured by United States Government Within Agri- war obligations. lo days, cultural 1 W 0 i t d h a i y n s. 1 d 1 a t y o s . 30 in m b c e a l m u n d k b i s e n ' r g 1 d 6 a t y o s . 30 31 d a i1 60 0 d 1 a t y o s . 90 an s p d t a o p l c i e k v r e- in 1 W c 5 l i u d t d h ay i i n n s g , Federal Reserve Bank. co n l o la t t e e s r . al o c v l e a r y s 9 . 0 m b e a m nk b s e 7 r 1 d 0 a t y o s . 90 collateral notes. .... o 3 w Boston: Nov. 16, 1914, to Dec. 31, 1915. 6 4 4 6 5 ... Jan. 1,1916, to Dec. 31,1916... 4 4 4 j 4 5 5 . Jan. 1, 1917, to Dec. 31, 1917... 5 4 5 | 4 5 3§ Jan. 1,1918, to Dec. 31,1918... 5 4! 5 4| 5 5 4 34 Jan. 1, 1919, to Dec. 31,1919... 4f 4f 41 4! 4| 5 5 4f 4 New York: Nov. 16,1914, to Dec. 31,1915. 51 | 6 5 Jan. 1, 1916, to Dec. 31, 1916... 5 5 Jan. 1,1917, to Dec. 31,1917... 5 5 34 3 Jan. 1,1918, to Dec. 31,1918... 4 3i 5 5 4 34 Jan. 1,1919, to Dec. 31,1919... 4f 5 5 4! 4 Philadelphia: Nov. 16,1914, to Dec. 31,1915. 6 Jan. 1,1916, to Dec. 31,1916... 44 Jan. 1,1917, to Dec. 31,1917... 5 44 34 3 Jan. 1,1918, to Dec. 31,1918-.. 5 5 4 34 Jan. 1, 1919, to Dec. 31,1919... 5 5 4| 4 III Trade accept- Trade Comances accept- modity within ances pa DC i- 60 days til to 90 within (see days. 90 days.i note 1). J w 34 j 34 34 34 34 I 3 4 34 4 34 4 4 41 4 4| 4 34 ! 34 4 34 3J 1 41 4 4 i W 4i 41 o I 3 I 3 3 3 | 3i 3 4 3* 3§ ! 3* 34 41 4 4 ! 4f 41 44 ! .- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Cleveland: Nov. 16,1914, to Dec. 31, 1915 1 6 31 6 4 6 44 6 31 31 4 4 Jan. 1,1916, to Dec. 31,1916 | 31 41 4 41 41 5 31 3 4 •31 Jan. 1,1917, to Dec. 31,1917 I 41 4 41 44 5 4 31 4 3 4 4 Jan. 1, 1918, to Dec. 31,1918 4f 41 4| 41 Si 31 | 4i 4 41 4 41 4 Jan. 1, 1919, to Dec. 31, 1919 4f 4f 4| 4f 4| 51 4 , 4i 4i 4* 41 41 41 Richmond: Nov. 16,1914; to Dec. 31,1915 6 4 6 4 6 31 31 4 4 Jan. 1, 1916, to Dec. 31,1916 4 4 4 4 5 3§ 31 4 31 Jan. 1,1917, to Dec. 31,1917 41 4 4* 4 41 31 4 31 4 31 31 Jan. 1,1918, to Dec. 31,1918 5 41 5 41 5 4 4f 4 4i 4 Jan. 1,1919, to Dec. 31,1919 4| 4f 4* 41 5 4 41 41 41 41 Atlanta: Nov. 16,1914, to Dec. 31, 1915 61 4 6* 4 61 31 31 31 31 Jan. 1, 1916, to Dec. 31,1916 4 4 4 4 5 31 31 31 31 Jan. 1,1917, to Dec. 31,1917 41 4 41 4 5 31 4 31 4 31 Jan. 1,1918, to Dec. 31,1918 4| 41 41 41 5 4 41 4 41 4 Jan. 1,1919, to Dec. 31,1919 4! 4f 4f 4i 51 4 41 41 41 41 Chicago: Nov. 16, 1914, to Dec. 31,1915 6 4 6 41 6 Jan. 1,1916, to Dec. 31,1916 31 41 4 4* 41 5 31 31 31 31 Jan. 1,1917, to Dec. 31,1917 4i 4 5 41 51 31 31 31 4 31 Jan. 1,1918, to Dec. 31, 1918 4f 41 5 4| 51 4 41 31 41 4 Jan, 1,1919, to Dec. 31,1919 4| 4f 4i 4f 4| 51 4| 4 41 41 41 41 St. Louis: Nov. 16,1914, to Dec. 31,1915 6 4 6 4 6 31 31 31 31 Jan. 1,1916, to Dec. 31,1916. 4 4 4 4 5 31 3 31 31 Jan. 1,1917, to Dec. 31,1917 41 4 41 4 51 31] 31 4 3 4 31 Jan. 1,1918, to Dec. 31,1918 4? 41 4f 44 51 31 4i 4 44 4 41 4 Jan. 1, 1919, to Dec. 31,1919 4f 4f 4| 4*| 51 4| 4 41 41 41 41 »Commodity rates were established during September and October, 1915, and merged with those for commercial paper of corresponding maturities in November and December, 1917. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 1,—Discount rates (high and loiv) in force during the period from Nov. 16, 1914, to Dec. 31, 1919—-Continued. 00 MATURITIES—Continued. Within 15 days, Within 11 to 30 i m nc e l m ud b i e n r g 16 to 30 10 davs. I days. banks' days. Federal Reserve Bunk. collateral notes. i w Minneapolis: Nov. 16, 1914, to Dec. 31, 1915. Jan. 1,1916, to Dec. 31, 1916... Jan. 1,1917, to Dec. 31, 1917... 4 4 Jan. 1, 1918, to Dec. 31,1918... % 4 Jan. 1,1919, to Dec. 31,1919... 4| 4i Kansas City: Nov. 16, 1914, to Dec. 31, 1915. Jan. 1, 1916, to Dec. 31,1916... Jan. 1, 1917, to Dec. 31, 1917... 4 4 Jan. 1, 1918, to Dec. 31, 1918... 4£ 4 Jan. 1, 1919, to Dec. 31, 1919... 5 4* Dallas: Nov. 16, 1914, to Dec. 31, 1915. Jan. 1, 1916, to Dec. 31,1916... Jan. 1,1917, to Dec. 31,1917... 4 34 Jan. 1,1918, to Dec. 31,1918... 44 4 Jan. 1, 1919, to Dec. 31, 1919... 5 44 .hgi Agricultural 3 d 1 a t y o s . 00 0 d 1 a t y o s 9 . 0 a s n t d o c l k ive- paper over 90 days. i W 44 4 41 44 4* 4* 4i 44 5k 4* 5 5 41 4 42- 44 5 4f .woL 44 44 44 5 5 4 4 44 44 5 4 4 4 44 5 .hgiH Secured by United States Government war obligations. i 1 m n W 5 b c e a l d i m u n t a d h k b y i i s e s n n ' , r g 1 d 0 a t y o s . 60 (s 0 a a e w T n e 0 c i c c r t d n a e e h a o d p s i y e t n t- e s ). a 0 T c a d 1 n c a r a e t c y o d p e s s e t . 0 - 0 9 m w 0 p C o a i d o t p d a h m u i y i t r n - s y . collateral notes. •s, ! 64 3 5 .... 34 34 3 54 34 I 34 34 54 44 44 54 4i 61 5 5 54 5^ 6* 4* 5 51 •5} Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

San Francisco: Nov. 16, 1914, to Dec. 31, 1915. 4 61 41 3 3 31 Jan. 1, 1916, to Dec. 31,1916... 31 4 41 41 51 3 3 31 31 Jan. 1,1917, to Dec. 31, 1917... 41 31 3i 41 4i 51 31 31 31 4 3 4 3 Jan. 1, 1918, to Dec. 31, 1918... 5 41 5 41 51 31 4 4| 4 4 Jan. 1, 1919, to Dec. 31,1919... 5 41 5 4f 51 4* 5 4! 1 Maximum rate during 1919 for maturities 16 to 60 days, 4| per cent. 2 Commodity paper rates for bills maturing within 30 days, 31 per cent; 31 to 60 days, 4 per cent; 61 to 90 days, 4J per cent. *Oct. 20, 1917, rate of 3J per cent for commodity paper maturing within 60 days and 4 per cent for paper maturing after 60 days but within 90 days. NOTE 1.—In cases during 1918 and 1919 where the 60-day trade acceptance rate was higher than the 15-day discount rate, trade acceptances maturing within 15 days were taken X at the lower rate. W NOTE 2.—Rates on paper secured by War Finance Corporation bonds, established by all Federal Reserve Banks between Apr. 4 and 11,1919, are 1 percent higher than on commercial paper of corresponding maturities. I o o d 15 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Exhibit B.—FEDERAL RESERVE NOTES. o No. 2.—Net amount of Federal Reserve notes received from the Comptroller of the Currency, issued to each Federal Reserve Bank and in actual circulation; gold and eligible paper held by each Federal Reserve agent; also amounts of Federal Reserve notes held by each Federal Reserve Bank on the last Friday in each month during the calendar year 1919. [In thousands of dollars.] Boston. Y N o e r w k. ! i Ph p i h la ia d . el- C la le n v d e . - m R o ic n h d - . Atlanta, j Chicago. | St. Louis. M ap i o n l n is e . - K C a i n ty sa . s Dallas. Sa c n is F co ra . n- Total. Federal reserve notes received from the i Comptroller of the Currency less notes returned for destruction: Jan.31 188,464 931,171 |253,059 283,127 159,701 169,703 492,607 130,226 103,280 126,517 78,663 226,277 3,142,795 Feb. 28 188,542 929,765 |244,994 281,710 156,427 171,067 485,004 132,731 101,169 123,477 76,964 224,663 3,116,513 Mar. 28 196,966 937,789 237,732 278,833 159,816 174,995 480,401 136,331 99,110 120,102 74,764 224,539 3,121,378 w Apr. 25 211,632 957,763 235,896 270,883 157,968 177,119 482,858 139,108 100,713 116,991 72,489 223,928 3,147,348 May 29 202,680 961,659 223,123 267,987 149,008 177,012 483,859 137,338 100,969 116,434 71,493 221,733 3,113,295 June 27 205,802 959,788 241,192 259,177 142,944 181,088 476,452 135,143 99,787 114,290 70,104 222,445 3,108,212 July 25 215,110 963,249 237,364 260,089 136,717 182,618 486,166 136,503 96,866 113,367 69,029 232,070 3., 129,148 Aug. 29 229,731 965,368 248,711 269,120 136,364 177,830 494,233 146,981 95,348 109,753 67,190 230,029 3,170,658 Sept. 26 264,352 972,475 254,177 280,233 145,636 179,676 514,972 153,590 97,151 111,993 69,811 243,115 3,287,181 Oct. 31 274,109 954,382 260,807 283,915 169,152 194,520 529,285 167,362 96,383 110,477 88,045 249,851 3,378,288 Nov. 28 276,476 966,849 261,810 288,329 169,797 202,072 528,146 180,374 93,660 113,753 85,426 264,723 3,431,415 Dec. 26 , 284,349 1,035,663 |270,778 300,955 174,170 203,254 539,058 187,515 96,476 115,695 90,347 278,951 3,577,211 Federal Reserve notes issued to Federal Reserve Banks (net amount): Jan.31 162,564 767,671 217,669 254,562 141,466 114,958 444,167 121,411 91,830 112,897 56,948 217,277 2,703,420 w o Feb. 28 163,221 772,365 222,894 248,940 132,862 115,341 436,724 121,366 89,569 108,957 52,704 213,663 2,678,606 Mar.28 171,826 794,189 215,532 245,073 130,456 120,080 444,561 120,161 88,120 105,722 51,449 218,539 2,705,708 Apr.25 184,172 814,163 216,536 241,063 129,508 119,319 452,418 118,528 87,973 103,611 49,184 215,928 2,732,403 May29 178,160 818,059 217,083 235,467 120,020 117,117 453,179 117,958 85,829 102,054 47,788 215,733 2,708,447 June 27 181,902 818,788 213,112 226,357 113,676 120,799 453,372 116,623 84,547 100,490 48,529 216,445 2,694,640 July 25 188,950 j 823,649 215,884 230,189 110,429 122,334 457,726 121, 82,806 100,017 48,854 221,470 2,723,601 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Aug. 29 ! 206,231 830,368 220,531 245,340 | 108,327 j117,130 463,233 125,191 79,638 98,293 49,555 223,329 2,767,166 Sept. 26 | 221,452 841,475 227,397 252,013 ! 120,428 !124,277 477,732 132,560 84,371 102,253 54,386 236,915 2,875,259 Oct. 31 ! 222,229 S21,382 232,327 254,935 ! 143,454 j145,955 491,205 150,252 85,703 102,267 64,040 244,951 2,958,700 Nov. 28 j 228,196 845,849 233,830 264,509 146,779 !153,207 499,786 161,494 85,550 107,443 72,436 260,573 3,059,652 Dec. 26 | 253,669 929,663 249,438 284,335 155,232 j162,809 533,738 167,515 88,916 111,005 77,977 277,801 3,292,098 Gold and gold certificates deposited with ! or to credit of Federal Reserve agents: j Jan. 31 ! 52,220 260,979 78,632 140,744 54,106 I 41,187 304,032 64,267 58,174 51,230 22,206 125,553 1,253,330 Feb. 28.... I 48,954 257,256 68,566 135,947 47,374 | 40,590 296,589 68,316 54,563 4g,101 19,765 ^101,739 1,187,760 Mar. 28 | 54,059 268,301 55,305 140,971 40,763 I 42,119 269,506 40,737 51,104 38,725 17,565 " 93,915 1,113,070 Apr.25 ] 60,405 276,335 76,069 138,796 31,515 | 43,699 255,723 40,393 28,207 34,614 16,789 107,404 1,109,949 May 29 j 56,893 286,920 68,375 130,019 31,554 42,592 266,485 56,804 40,263 29,957 16,594 105,269 1,131,725 toe 27... | 57,135 292,311 68,205 115,510 32,090 j 42,668 261,677 53,729 36,581 25,113 15,904 112,901 1,113,824 July 25 j 59,163 287,952 70,576 119,522 30,863 | 44,199 266,031 61,069 33,660 30,770 15,780 88,466 1,108,051 Aug. 29 j 68,544 281,659 75,923 130,573 23,951 | 41,911 266,538 62,987 33,142 39,356 16,040 101,965 1,142,589 Sept. 26 | 67,965 288,849 75,889 137,686 30,763 j 43,157 318,957 46,436 35,445 34,596 16,831 99,751 1,196,325 Oct. 31 j 73,242 281,912 72,519 133,388 41,998 51,501 282,430 73,388 36,077 35,980 21,615 101,526 1,205,576 Nov. 28 : 62,090 282,877 78,522 105,502 46,923 53,553 247,491 69,100 34,354 38,917 24,996 104,399 1,148,724 Dec. 26 j 73,782 307,385 82,491 125,048 41,036 64,734 245,883 65,920 35,570 39,858 27,878 130,447 1,240,032 Eligible paper held by Federal Reserve ! agents: Jan. 31 | 145,637 717,489 143,199 138,602 87,500 76,857 184,286 59,921 43,509 78,615 53,193 94,677 1,823,485 Feb. 28 ! 155,443 830,363 156,559 167,619 102,968 80,834 211,245 64,259 46,924 83,013 58,346 118,929 2,076,502 Mar. 28 169,345 732,816 161,480 153,228 105,152 78,973 255 859 84,702 58,989 99,389 53,094 127,201 2,080,228 Apr.25 172,138 755,970 142,687 148,517 102,398 80,278 236,938 86,486 61,143 89,497 56,754 111,300 2,044,106 May29 | 166,352 774,782 151,084 158,956 92,418 83,681 274,317 63,987 49,774 89,917 53,652 120,361 2,079,281 June 27- 173,354 721,939 149,503 161,133 93,340 84,250 262,625 66,339 59,992 93,655 53,874 114,463 2,031,467 July 25 167,542 809,390 147,127 168,720 100,549 95,073 271,855 65,433 58,889 83,824 58,955 144,017* 2,171,374 Aug. 29 161,447 794,178 156,096 166,510 94,892 91,735 251,899 67,852 49,558 74,767 58,819 127,808 2,095,561 Sept. 26 176,265 741,482 153,784 169,543 | 95,796 82,989 261,276 95,535 57,880 103,517 56,209 140,277 2,134,553 Oct. 31 170,627 917,586 161,113 175,609 j 102,588 109,097 295,648 87,208 64,458 107,701 64,100 171,390 2,427,125 Nov.28 198,776 956,361 159,400 227,862 |100,780 102,356 364,958 106,739 66,115 105,586 57,991 171,606 2,618,530 Dec. 26 211,342 977,365 176,867 222,792 |120,967 106,172 383,370 115,098 69,456 107,359 61,795 115,593 2,711,898 00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 2.—-Net amount of Federal Reserve notes received from the Comptroller of the Currency, issued to each Federal Reserve Bank and in actual circulation; 00 gold and eligible paper held by each Federal Reserve agent; also amounts of Federal Reserve notes held by each Federal Reserve Bank on the last Friday in each month during the calendar year 1919—Continued. [In thousands of dollars.] Boston. Y N o e r w k. Ph p i h la ia d . el- C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. St. Louis M ap i o n l n is e . - K C a i n ty sa . s Dallas. Sa c n i s F co ra . n- Total. Federal Reserve notes held by banks: Jan.31 12,999 119,758 7,748 23,409 5,396 3,567 39,141 12,044 1,302 7,304 1,572 18,451 252,691 Feb. 28 3,669 94,746 12,126 15,871 4,267 4,556 25,918 12,528 1,410 7,348 1,537 22,323 206,299 Mar. 28 4,952 71,029 9,446 12,431 4,258 4,105 27,015 12,146 1,062 6,107 1,342 30,039 183,932 Apr. 25 6,435 75;351 9,943 10,468 4,117 3,986 25,963 14,433 1,492 5,191 1,456 24,016 182,851 May 29 5,989 75,669 11,349 11,868 4,536 3,767 30,852 13,778 1,935 6,469 1,520 21,423 189,155 June 27 5,743 81,351 9,409 11,694 4,046 5,137 31,700 13,763 2,515 6,813 1,592 21,697 195,460 July 25 8,469 84,484 14,191 11,395 4,694 5,499 34,333 16,564 3,167 7,869 2,297 26,142 219,104 Aug. 29 7,264 78,085 7,779 14,204 3,654 3,499 23,489 18,039 2,004 5,760 2,952 19,808 186;537 Sept. 26 13,623 88,340 14,818 9,733 5,328 3,265 27,684 19,168 1,972 6,991 2,394 26,589 219,905 Oct. 31 10,133 70,667 16,034 11,195 4,862 3,979 30,808 19,492 1,855 6,696 2,888 27,215 205,824 Nov. 28 7,368 78,451 10,779 13,498 5,223 4,640 24,724 20,485 1,766 5,694 3,260 31,487 207,375 Dec. 26 7,214 104,719 9,165 11,451 6,539 6,210 23,720 19,063 1,441 5,905 3,091 35,934 234,452 Federal Reserve notes in actual circulation: Jan. 31 149,565 647,913 209,921 231,153 136,070 111,391 405,026 109,367 90,528 105,593 55,376 198,826 2,450,729 Feb. 28 159,552 677,619 210,768 233,069 128,595 110,785 410,806 108,838 88,159 101,609 51,167 191,340 2,472,307 Mar.28 166,874 723,160 206,086 232,642 126,198 115,975 417,546 108,015 87,058 99,615 50,107 188,500 2,521,776 Apr. 25 177,737 738,812 206,593 230,595 125,391 115,333 426,455 104,095 86,481 98,420 47,728 191,912 2,549^552 M,ay29 172,171 742,390 205,734 223,599 115,484 113,350 422,327 104,180 83,894 95,585 46,268 194,310 2,519,292 June 27 176,159 737,437 203,703 214,663 109,630 115,662 421,672 102,860 82,032 93,677 46,937 194,748 2,499,180 July25 180,481 739,165 201,693 218,794 105,735 116,835 423,393 104,729 79,639 92,148 46,557 195,328 2,504,497 Aug. 29 198,967 752,283 212,752 231,136 104,673 113,631 439,744 107,152 77,634 92,533 46,603 203,521 2,580,629 Sept. 26 207,829 753,135 212,579 242,280 115,100 121,012 450,048 113,392 82,399 95,262 51,992 210,326 2,655,354 Oct. 31 212,096 750,715 216,293 243,740 138,592 141,976 460,397 130,760 83,848 95,571 61,152 217,736 2,752,876 Nov. 28 220,828 767,398 223,051 251,011 141,556 148,567 475,062 141,009 83,784 101,749 69,176 229,086 2,852,277 Dec. 26 246,455 824,944 240,273 272,884 148,693 156,599 510,018 148,452 87,475 105,100 74,886 241,867 3,057,646 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No, 3.—Federal Reserve notes outstanding (i. e., net amount issued to Federal Reserve Banks), in actual circulation, and gold and paper collateral held by Federal Reserve agents against outstanding notes. [In thousands of dollars.] Gold cover for notes issued. Paper collateral for notes issued. n s R F o ta t e e n e d s d s e e i r o r n v a u g e l t . - c C i e n r o t i i v n f a i c u a a n l t t e d . s de U f S I u m n n t n a d p i r t t — t e e e i - s d on se R F I f t n t e e u l s d e n g e e m o d r r l v - e a d e l nt Total. r A eq m u o ir u e n d t . A ac m h t e u o l a u d l n . ly t E p h x a e c p l e d e s . r s R h F i b s e n e e a s l o d s u d n e t e i k e r n r b v s s a g y . e l a c n R c F u t o e e l u t a s d e a e t e s l i r r o v c a i n n e i l r . - Treasurer. Board. 1919. Jan. 3 866,047 246,315 84.632 I 930,436 1,261,383 1,604/664 2,069,228 464,564 218,442 2,647,605 1 10 844,516 254,656 82,599 900,990 1,238,245 1,606,271 1,993,694 387,423 253,835 2,590,681 1 17 770,301 249,707 80,598 958,800 1,289,105 1,481,196 1,813,066 331,870 257,212 2,513,089 24 730,916 241,527 77,193 936,472 1,255,192 1,475,724 1,978,084 502,360 264,360 2,466,556 31 ,703,420 240,527 80,142 932,661 1,253,330 1,450,090 1,823,485 373,395 252,691 2,450,729 Feb. 7 ,691,859 225,147 84,562 921.457 1,231,166 1,460,693 1,920,051 459,358 237,694 2,454,165 14 690,702 225,147 83,758 908.458 1,217,363 1,473,339 2,037,506 564,167 222,314 2,468,388 20 677,835 225,147 83,379 889,457 1,197,983 1,479,852 2,022,006 542,154 211,587 2,466,248 w 28 678,606 229,147 87,438 871,175 1,187,760 1,490,846 2,076,502 585,656 206,299 2,472,307 Mar. 7 670,903 232,146 79,457 852,237 1,163,840 1,507,063 2,101,419 594,356 182,366 2,488,537 14 679,021 240.146 78,718 851,737 1,170,601 1,508,420 2,080,990 572,570 175,926 2,503,095 21 696,544 243,006 78,005 791,927 1,112,938 1,583,606 2,084,708 501,102 185,857 2,510, 687 28 705,708 245.147 78.633 789,290 1,113,070 1,592,638 2,080,228 487,590 183,932 2,521,776 Apr. 4 714,089 237,747 88,520 773,906 1,100,173 1,613,916 2,037,260 423,344 166,419 2,547,670 IS 11 724,097 235,747 84,539 762,158 1,082,444 1,641,653 2,111,610 469,957 175,509 2,548,588 18 736,384 232,747 75,595 777,177 1,085,519 1,650,865 2,064,724 413,859 192,680 2,543,704 25 72-2,403 236,498 84,829 788,622 1,109,949 1,622,454 2,044,106 421,652 182,851 2,549,552 May 2 731,274 230,498 84,094 790.107 1,104,699 1,626,575 2,069,765 443,190 182,234 2,549,040 9 735,798 232,498 84,133 817,567 1,134,198 1,601,600 2,087,062 485,462 179,049 2,556,749 16 741,265 240,498 85,084 825,321 1,150,903 1,590,362 2,135,541 545,179 209,226 2,532,039 23 725,791 228,498 81,219 830.108 1,139,825 1,585,966 2,052, 784 466,818 221,538 2,504,253 708,447 228,498 87,251 815,976 1.131,725 1,576,722 2,079,281 502,559 189,155 2,519,292 00 CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 3.—Federal Reserve notes outstanding {%. c, net amount issued to Federal Reserve Banks), in actual circulation, and gold and paper collateral held by Federal Reserve agents against outstanding notes—Continued. [In thousands of dollars.] Gold cover for notes issued. Paper collateral for notes issued. n s R F o ta t e e n e d s s d e e i r o r n v a u g e l t . - c C i e n r o t i i v n f a i c u a a n l t t d e . s de U f S I u m n n t n a p d i r t t — t e e e i - s d on se R F I f t n u t e e l n d s e g d e e m o — r r v l a e d e l nt Total. r A eq m u o ir u e n d t . A ac m h t e u o l a u d l . n ly t E p h x a e c p l e d e s . r s h R F i b s e n e e a s l o d s d u n e t e i k e r n r b s s v a g y . e l a c R n c F u t o e e l u t a d s e a e t e l s i r r o v c i a n n i e l r . - Treasurer. Board. 1919. June 6.. 2,722,606 231,498 83,713 824,297 1,139,508 1,583,098 1,955,496 372,398 209,569 2,513,037 13.. 2,709,895 224,998 81,222 811,750 1,117,970 1,591,925 2,001,203 409,278 210,630 2,499,265 20.. 2,693,198 218,998 86,817 821,401 1,127,216 1,565,982 2,010,144 444,162 204,945 2,488,253 H 27.. 2,694,640 219,998 81,024 812,802 1,113,824 1,580,816 2,034,467 453,651 195,460 2,499,180 July 3.. 2,740,893 228,998 93,817 832,463 1,155,278 1,585,615 2,150,698 565,083 188,545 2,552,348 ll.. 2,760,288 231,998 88,576 842,494 1,163,068 1,597,220 2,210,078 612,858 222,161 2,538,127 18.. 2,728,902 223,598 89, 745 820,830 1,134,173 1,594,729 2,112,717 517,988 216,854 2,512,048 25.. 2,723,601 221,248 84,912 801,891 1,108,051 1,615,550 2,171,374 555,824 219,104 2,504,497 Aug. 1 | 2,715,374 221,248 81,549 768,510 1,071,307 1,644,067 2,140,965 496,898 208,554 2,506,820 8.. 2,725,263 223,248 84,764 776,035 1,084,047 1,641,216 2,150,291 509,075 193,206 2,532,057 15.. 2,734,254 227,248 87,962 803,684 1,118,894 1,615,360 2,037,471 422, 111 193,350 2,540,904 22.. 2,748,740 226,248 104,350 796,430 1,127,028 1,621,712 2,039,265 417,553 195,206 2,553,534 29.. 2,767,166 236,248 94,160 812,181 1,142,589 1,624,577 2,095,561 470,984 186,537 2,580,629 Sept. 5. 2,794,100 236,248 100,075 835,845 1,172,168 1,621,932 2,107,324 485,392 182,403 2,611,697 12. 2,830,146 243,248 93,090 854,431 1,190,769 1,639,377 2,025,994 386,617 208,918 2,621,228 W 19. 2,851,622 245,408 101,921 861,632 1,208,961 1,642,661 1,913,595 270,934 230,364 2,621,258 O 26. 2,875,259 247,248 99,933 849,144 1,196,325 1,678,934 2,134,553 455,619 219,905 2,655,354 Oct. 3.. 2,899,122 242,248 93,608 830,542 1,166,398 1,732,724 2,264,643 531,919 190,936 2,708,186 10.. 2,949,244 244,248 88,108 854,341 1,186,697 1,762,547 2,312,574 550,027 207,560 2,741,684 17.. 2,970,132 242,248 91,949 867,105 1,201,302 1,768,830 2,371,047 602,217 217,563 2,752,569 24.. 2,980,610 242,248 90,999 864,686 1,197,933 1,782,677 2,366,692 584,015 227,153 2,753,457 31.. 2,958,700 242,249 83,668 879,659 1,205,576 1,753,124 2,427,125 674,001 205,824 2,752,876 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nov. 7 3,000,867 238,248 93,368 875,659 1,207,275 1,793,592 2,530,781 737,189 194,108 2,806,759 14 3,036,690 238,248 105,267 850,804 1,194,319 1,842,371 2,509,360 666,989 228,234 2,808,456 21 3,031,492 236,248 98,821 831,017 1,166,086 1,865,406 2,519,660 654,254 214,319 2,817,173 28 3,059,652 236,248 99,461 813,015 1,148,724 1,910,928 2,618,530 707,602 207,375 2,852,277 Dec. 5. 3,108,377 249,648 98,158 824,385 1,172,191 1,936,186 2,536,068 599,882 227,018 2,881,359 12. 3,148,740 244,848 90,489 853,006 1,188,343 1,960,397 2,615,646 655,249 241,305 2,907,435 19. 3,220,560 244,648 110,000 847,006 1,201,654 2,018,906 2,494,034 475,128 231,666 2,988,894 26. 3,292,098 244,148 103,575 892,309 1,240,032 2,052,066 2,711, 898 659,832 234,452 •6,057,64b CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 4.—Federal Reserve notes in actual circulation and per cent of gold cover therefor during the calendar year 1919. 00 [In thousands of dollars.] T r o e t s a e l r v c e a s s . h a 3 d R g r 5 e e a e p p q i s o n e u e s r s i r i t r v t c e s n e e d — s n et t. n a o a B R s F a v t e g a e e a r s e l a d s i a l s e i i e a n n n e r r b v r c s a c v l t e e l e i e r- ci n R F rc o e e u t d s e l e e a s r r t v i a i o n e l n. R n F a re o g e G e s t d a s e e o e i e s r l n r r d v v s a i e n t e l T r o e t s a e l r v c e as s h . a 3 d g R 5 r e e a p e p q i s o n e u e s r s i r i t r v t c e s n e e — d s n et t. n a o a B R F s a v t e g a e a r e s e l d a i s a l s e i i e a n n e n r r b v r c s a v l c e t e l e i e r- ci n R F rc o e e u t d s e l e e a s r r t v i a i o n e l n. n R F a r o e g e e G s t d a s e e o e i e s r n l r r d v v s a i e n t e l > culation. circulation, culation. circulation. 1919. Per cent. 1919. Per cent. o Jan. 3.. 2,152,154 543,028 1,609,126 2,647,605 60.8 July 3 2,195,353 620,201 1,575,152 2,552,348 61.7 10.. 2,161,898 551,553 1,610,345 2,590,681 62.2 11 2,180,211 644,852 1,535,359 2,538,127 60.5 H 17.. 2,170,163 557,369 1,612,794 2,513,089 64.2 18 2,177,481 619,324 1,558,157 2,512,048 62.0 O 24.. 2,168,387 537,838 1,630,549 2,466,556 66.1 25 2,161,023 628,796 1,532,227 2,504,497 61.2 hrj 31.. 2,179,646 580,810 1,598,836 2,450,729 65.2 Aug. 1 2,156,327 618,163 1,538,164 2,506,820 61.4 H Feb. 7.. 2,175,614 564,956 1,610,658 2,454,165 65.6 8 2,152,118 607,440 1,544,678 2,532,057 61.0 w 14.. 2,185,318 610,632 1,574,686 2,468,388 63.8 15 2,151,723 591,036 1,560,687 2,540,904 61.4 20.. 2,191,532 605,779 1,585,753 2,466,248 64.3 22 2,142,701 567,401 1,575,300 2,553,534 61. 7 28.. 2,188,723 628, 855 1,559,868 2,472,307 63.1 29 2,135,976 570,331 1,565,645 2,580,629 60.7 Mar. 7.. 2,205,462 630,732 1,574,730 2,488,537 63.3 Sept. 5 2,136,870 568,441 1,568,429 2,611,697 60.1 14.. 2,196,737 619,306 1,577,431 2,503,095 63.0 12 2,138,499 566,376 1,572,123 2,621,228 60.0 21.. 2,208,578 619,026 1,589,552 2,510,687 63.3 19 2,162,057 524,970 1,637,087 2,621,258 62.5 28.. 2,210,524 609,499 1,601,025 2,521,776 63.5 26 2,187,505 571,926 1,615,579 2,655,354 60.8 Apr. 4.. 2,218,628 596,178 1,622,450 2,547,670 63.7 Oct. 3 2,205,511 604,193 1,601,318 2,708,186 59.1 11.. 2,211,989 622,270 1,589,719 2,548,588 62.4 10 2,202,100 610,348 1,591,752 2,741,684 58.1 18. 2,230,859 607,275 1,623,584 2,543,704 63.8 17 2,199,185 628,656 1,570,529 2,752,569 57.1 t=3 25. 2,240,152 613,233 1,626,919 2,549,552 63.8 24 2,214,561 627,341 1,587,220 2,753,457 57.6 w May 2. 2,237,219 621,233 1,615,986 2,549,040 63.4 31 2,205,592 647,681 1,557,911 2,752,876 56.6 O 9. 2,242,784 617,858 1,624,926 2,556,749 63.5 Nov. 7 2,187,369 654,679 1,532,690 2,806,759 54.6 § 16. 2,245,857 652,860 1,592,997 2,532,039 62.9 14 2,200,106 650,390 1,549,716 2,808,456 55.2 23. 2,247,933 629,127 1,618,806 2,504,253 64.6 21 2,186,972 646,380 1,540,592 2,817,173 54.7 2,255,106 640,822 1,614,284 2,519,292 6,4.1 28,.,.. 2,159,666 661,290 1,498,376 2,852,277 52.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

June 6 2,270,343 599,241 1,671,102 2,513,037 66. S Dec. 5. 2,154,095 616,532 1,537,563 2,881,359 53.4 13 2,261,988 628,170 1,633,818 2,499,265 65.4 12. 2,160,405 625,249 1,535,156 2,907,435 52.8 20 2,234,459 619,965 1,614,494 2,488,253 64.9 19. 2,154,911 563, 824 1,591,087 2,988,894 53.2 27. 2,216,256 612,743 1,603,513 2,499,180 64.2 26. 2,135,536 596,563 1,538,973 3,057,646 50.3 00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No, 5.—Federal Reserve notes, by denominations, printed, shipped to Federal Reserve agents and United States subtreasuries since organization of banks, oo oo and on hand in reserve vault Dec. SI, 1919. Bank. Fives. Tens. Twenties. Fifties. Hundreds. Fi d v r e e d h s u . n- Thousands. Fi s v a e n t d h s o . u- Te s n a n t d h s o . u- Total. Boston: Printed.. $105,280,000 $204,880,000 $140,880,000 $38,800,000 $33,600,000 $8,400,000 $30,400,000 $12,000,000 $16,000,000 $590,240,000 Shipped. 102,500,000 203,000,000 136,000,000 21,000,000 20,400,000 2,600,000 6,800,000 4,000,000 8,000,000 504,300,000 On hand. 2,780,000 1,880,000 4,880,000 17,800,000 13,200,000 5,800,000 23,600,000 8,000,000 8,000,000 85,940,000 New York: Printed..-. 428,260,000 698,640,000 550,080,000 126,800,000 208,000,000 34,600,000 79,600,000 26,000,000 52,000,000 2,203,980,000 o Shipped... 428,200,000 696,560,000 511,440,000 125,000,000 181,600,000 18,800,000 46,400,000 6,000,000 12,000,000 2,026,000,000 H to On hand. 60,000 2,080,000 38,640,000 1,800,000 26,400,000 15,800,000 33,200,000 20,000,000 40,000,000 177,980,000 Philadelphia: H Printed 98,580,000 162,520,000 220,320,000 44,000,000 40,000,000 11,000,000 12,400,000 10,000,000 24,000,000 622,820,000 H Shipped... 96,700,000 160,280,000 214,400,000 34,200,000 30,000,000 1,000,000 2,400,000 538,980,000 ft On hand. 1,880,000 2,240,000 5,920,000 9,800,000 10,000,000 10,000,000 10,000,000 10,000,000 24,000,000 83,840,000 Cleveland: Printed 62,920,000 114,040,000 209,360,000 84,600,000 23,600,000 5,000,000 5,200,000 4,000,000 8,000,000 516,720,000 Shipped... 61,360,000 108,760,000 204,080,000 83,200,000 23,600,000 3,000,000 3,200,000 2,000,000 4,000,000 493,200,000 On hand. 1,560,000 5,280,000 5,280,000 1,400,000 2,000,000 2,000,000 2,000,000 4,000,000 23,520,000 Richmond: Printed 62,060,000 92,880,000 114,400,000 35,600,000 26,400,000 11,600,000 12,400,000 8,000,000 8,000,000 371,340,000 Shipped... 58,060,000 86,040,000 103,760,000 28,400,000 19,600,000 1,600,000 2,400,000 2,000,000 4,000,000 305,860,000 w o On hand. 4,000,000 6,840,000 10,640,000 7,200,000 6,800,000 10,000,000 10,000,000 6,000,000 4,000,000 65,480,000 Atlanta: Printed.... 70,640,000 117,880,000 152,000,000 16,200,000 18,000,000 2,200,000 2,800,000 2,000,000 4,000,000 385, 720,000 Shipped... 65,460,000 103,040,000 118,480,000 12,800,000 14,800,000 200,000 800,000 315,580,000 On hand. 5,180,000 14,840,000 33,520,000 3,400,000 3,200,000 2,000,000 2,000,000 2,000,000 4,000,000 70,140,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Chicago: Printed - - . 162,940,000 298,920,000 364,560,000 68,800,000 42,800,000 10,200,000 13,200,000 10,000,000 8,000,000 979,421,000 Shipped 155,360,000 279,720,000 327,680,000 56,800,000 29,200,000 2,200,000 6,000,000 2,000,000 858,960,000 On hand 7,580,000 19,200,000 36,880,000 12,000,000 13,600,000 8,000,000 7,200,000 8,000,000 8,000,000 120,460,000 St. Louis: Printed 75,540,000 105,400,000 124,480,000 17,400,000 11,200,000 5,000,000 6,000,000 4,000,000 8,000,000 357,020,000 Shipped 73,880,000 102,720,000 108,160,000 16,000,000 10,400,000 1,000,000 2,000,000 2,000,000 4,000,000 320,160,000 On hand 1,660,000 2,680,000 16,320,000 1,400,000 800,000 4,000,000 4,000,000 2,000,000 4,000,000 36,860,000 X K Minneapolis: w Printed 59,560,000 66,560,000 59,040,000 4,400,000 5,600,000 1,400,000 6,800,000 203,360,000 I—I Shipped 50,040,000 57,360,000 48,080,000 2,600,000 4,400,000 400,000 1,200,000 164,080,000 H On hand 9,520,000 9,200,000 10,960,000 1,800,000 1,200,000 1,000,000 5,600,000 39,280,000 W Kansas City: Printed 86,800,000 79,680,000 86,080,000 10,600,000 10,400,000 4,000,000 4,000,000 281,500,000 Shipped 67,740,000 66,960,000 68,720,000 7,800,000 8,000,000 600,000 1,200,000 221,020,000 On hand 19,060,000 12,720,000 17,360,000 2,800,000 2,400,000 3,400,000 2,800,000 60,540,000 Dallas: Printed 47,380,000 67,680,000 70,960,000 8,400,000 7,600,000 3,000,000 6,000,000 6,000,000 12,000,000 229,020,000 Shipped 37,680,000 49,920,000 54,720,000 6,000,000 4,800,000 400,000 800,000 154,320,000 On hand 9,700,000 17,760,000 16,240,000 2,400,000 2,800,000 2,600,000 5,200,000 6,000,000 12,000,000 74,700,000 San Francisco: Printed 82,280,000 99,520,000 189,600,000 28,400,000 41,200,000 6,200,000 9,200,000 8,000,000 12,000,000 476,400,000 Shipped 82,140,000 96,720,000 184,320,000 28,400,000 41,200,000 3,200,000 9,200,000 6,000,000 8,000,000 459,180,000 On hand 140,000 2,800,000 5,280,000 3,000,000 2,000,000 4,000,000 17,220,000 VAULT BALANCE Total printed . . . 1,342,240,000 2,108,600,000 2,281,760,000 484,000,000 468,400,000 102,600,000 188,000,000 90,000,000 152,000,000 7,217,600,000 Total shipped 1,279,120,000 2,011,080,000 2,079,840,000 422,200,000 388,000,000 35,000,000 82,400,000 24,000,000 40,000,000 6,361,640,000 Total on hand 63,120,000 97,520,000 201,920,000 61,800,000 80,400,000 67,600,000 105,600,000 66,000,000 112,000,000 855,960,000 CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No, 6,—Federal Reserve notes, by denominations, on hand Dec. 31, 1918, received, issued to the banks, and returned to the comptroller for destruction CO during calendar year 1919, and on hand Dec. 81, 1919, as reported by Federal Reserve agents. o IN HANDS OF FEDERAL RESERVE AGENTS DEC. 31, 1918. Federal Reserve agent at— Fives. Tens. Twenties. Fifties. Hundreds. hun F d iv re e ds. Thousands. thou F s iv an e ds. thou T s e a n nds. Total. Boston $3,640,000 $3,160,000 $4,240,000 $3,300,000 $3,500,000 $17,840,000 New York ... 15,000,000 28,000,000 16,800,000 10,000,000 40,000,000 109,800,000 Philadelphia 2,760,000 2,200,000 5,680,000 3,000,000 4,000,000 17,640,000 Cleveland 1 320 000 3,640,000 4,080,000 8,200,000 5,100,000 22,340,000 o Richmond 1,000,000 720,000 1,600,000 2,900,000 G, 220,000 w H Atlanta -. - 8,070,000 15,061,000 10,220,000 4,872,000 6,492,000 44,715,000 Chicago . . .. 5,840,000 10,680,000 20,320,000 4,600,000 4,800,000 46,240,000 St. Louis 2,590,000 400,000 2,990,000 Minneapolis 1,880,000 2,360,000 1,840,000 90,000 280,000 6,450,000 W Kansas City 1,120,000 1,880,000 2,000,000 1,540,000 980,000 7,520,000 Dallas 4,715,000 4,860,000 4,020,000 1,605,000 2,430,000 17,630,000 San Francisco Total 46,935,000 72,841,000 69,920,000 39,207,000 70,482,000 299,385,000 I RECEIVED FROM COMPTROLLER OF THE CURRENCY. Boston $44,860,000 $97,520,000 $64,560,000 $8,600,000 $3,200,000 $2,400,000 $6,400,000 $2,000,000 $4,000,000 $233,540; 000 New York.. 159,400,000 241,200,000 182,720,000 42,600,000 25,200,000 18,800,000 38,400,000 6,000,000 j 12,000,000 726,320,000 w Philadelphia 37,960,000 58,160,000 67,040,000 9,800,000 10,000,000 1,000,000 2,400,000 186,360,000 o Cleveland... 23,320,000 37,080,000 59,280,000 23,800,000 4,800,000 3,000,000 3,200,000 2,000,000 43 000,000 160,480,000 % Richmond.. 23,600,000 32,840,000 35,440,000 6,200,000 3,200,000 1,600,000 2,400,000 2,000,000 4,000,000 111,280,000 Atlanta 19,480,000 31,920,000 44,960,000 1,600,000 2,800,000 200,000 800,000 101,760,000 Chicago 62,320,000 101,760,000 94,880,000 17,600,000 800,000 2,200,000 6,000,000 2,000,000 287,560,000 St. Louis.... 33,860,000 41,440,000 42,320,000 7,200,000 4,400,000 1,000,000 2,000,000 2,000,000 A, 000,000 138,220,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minneapolis.., 12,040,000 6,840,000 6,320,000 400,000 400,000 400,000 1,200,000 27,600,000 Kansas City... 17,560,000 17,240,000 10,160,000 400,000 400,000 600,000 1,200,000 47,560,000 Dallas 10,500,000 13,040,000 15,040,000 3,200,000 800,000 400,000 800,000 43,780,000 San Francisco. 36,120,000 36,840,000 60,240,000 7,200,000 6,800,000 2,200,000 5,600,000 2,000,000 4,000,000 161,000,000 Total.... 481,020,000 715,880,000 682,960,000 128,600,000 62,800,000 33,800,000 70,400,000 18,000,000 32,000,000 2,225,460,000 RETURNED BY FEDERAL RESERVE BANKS. m x 3 Boston $33,025,750 $62,307,560 $35,477,900 $4,969,550 $3,922,100 $10,500 $55,000 $139,768,360 3 New York.... 146,830,510 244,452,730 172,511,340 35,223,200 30,649,100 384,000 2,319,000 $50,000 632,419,880 Philadelphia.. 36,740,190 59,712,110 82,653,680 6,444,800 4,026,300 4,000 . 54,000 189,635,080 Cleveland 21,973,015 37,994,900 64,683,480 18,955,150 2,652,100 5,500 19,000 146,283,145 W Richmond 31,265,850 47,689,000 55,746,600 13,703,900 10,206,500 606,500 1,302,000 $500,000 1,050,000 162,070,350 Atlanta 29,392,185 46,435,190 59,396,640 5,116,450 5,720,000 200,000 850,000 147,110,465 Chicago 56,046,620 86,993,270 83,465,940 10,351,150 2,888,300 16,500 37,000 239,798,780 St. Louis 23,482,580 33,594,220 33,776,320 4,773,600 2,350,700 102,500 146,000 100,000 100,000 98,425,920 w Minneapolis... 14,245,575 22,023,410 13,033,720 460,900 505,200 3,000 50,271,805 Kansas City... 21,514,145 21,484,190 21,949,540 1,622,200 1,087,500 3,000 1,000 67,661,575 p Dallas 7,594,685 14,113,610 14,216,220 624,300 941,200 1,000 90,000 37,581,015 San Francisco. 30,722,120 32,074,990 53,304,640 5,513,250 7,609,400 303,500 711,000 1,805,000 3,500,000 135,543,900 Total... 452,833,225 708,875,180 690,216,020 107,758,450 72,558,400 1,637,000 5,587,000 2,405,000 4,700,000 2,046,570,275 j o 02 CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 6.—Federal Reserve notes, by denominations, on hand Dec. 31, 1918, received, issued to the banks, and returned to the comptroller for destruction CO during calendar year 1919, and on hand Dec. SI, 1919, as reported by Federal Reserve agents—Continued. ISSUED TO FEDERAL RESERVE BANKS. I Federal Reserve agent at— Tens. Twenties. Fifties. PTundreds. hun F d iv re e ds. Thousands. thou F s iv an e ds. Ten Total. thousands. Boston $44,500,000 $91,920,000 $63,680,000 $11,400,000 $6,600,000 $700,000 $5,300,000 $400,000 $1,000,000 $225,500,000 New York 167,400,000 271,200,000 189,520,000 46,400,000 28,400,000 13,800,000 28,400,000 2,000,000 6,000,000 753,120,000 Philadelphia... 37,010,000 58,880,000 75,970,000 9,600,000 11,600,000 600,000 2,000,000 195,660,000 Cleveland 23,425,000 38,710,000 64,680,000 27,600,000 6,850,000 800,000 1,000,000 200,000 300,000 163,565,000 o Richmond 33,185,000 49,330,000 55,130,000 11,820,000 8,390,000 702,500 2,500,000 550,000 1,170,000 162,777,500 Atlanta 36,150,000 57,736,000 74,340,000 6,098,000 7,839,000 210,000 1,225,000 183,598,000 Chicago 67,640,000 110,920,000 112,560,000 19,800,000 3,200,000 2,200,000 6,000,000 2,000,000 324,320,000 St. Louis 35,695,000 39,890,000 44,500,000 7,650,000 3,900,000 500,000 1,340,000 200,000 350,000 134,025,000 Minneapolis 14,540,000 11,820,000 11,630,000 350,000 420,000 230,000 1,000,000 39,990,000 Kansas City.... 18,580,000 20,720,000 15,760,000 990,000 1,050,000 300,000 500,000 57,900,000 Dallas 11,400,000 17,435,000 19,320,000 4,080,000 2,890,000 215,000 390,000 55,730,000 San Francisco. 38,140,000 39,000,000 68,940,000 9,800,000 11,500,000 2,500,000 6,300,000 3,650,000 6,500,000 186,330,000 Total.. 527,665,000 807,561,000 796,030,000 155,588,000 92,639,000 22,757,500 55,955,000 9,000,000 15,320,000 2,482,515,500 I RETURNED TO COMPTROLLER FOR DESTRUCTION. Boston $33,025,750 $62,308,560 $35,475,900 $3,271,050 $2,821,600 $10,500 $55,000 $136,968,360 1 New York... 136,830,510 238,452,730 162,511,340 31,423,200 27,449,100 384,000 2,319,000 $50,000 599,419,880 Philadelphia. 35,990,190 56,712,110 73,402,680 6,445,800 4,026,300 4,000 54,000 176,635,080 w Cleveland 21,688,015 36,364,900 61,923,480 17,755,150 2,302,100 5,500 19,000 140,058,145 o Richmond... 20,020,850 28,969,000 32,776,600 7,803,900 2,776,500 6,500 52,000 92,405,350 Atlanta 15,212,185 23,525,190 24,436,640 1,195,450 703,000 65,072,465 Chicago 56,046,620 86,993,270 83,305,940 10,351,150 2,888,300 16,500 37,000 239,638,780 St. Louis 22,317,580 30,384,220 28,176,320 2,373,600 850,700 2,500 6,000 84,110,920 Minneapolis.. 12,405,575 15,073,410 8,603,720 320,900 365,200 3,000 36,771,805 Kansas City.. 20,894,145 19,204,190 17,629,540 682,200 637,500 3,000 1,000 59,051,575 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Dallas 6,639,685 9,948,610 ! 9,596,220 534,300 251,200 1,000 26,971,015 San Francisco 28,702,120 29,914,990 j 44,604,640 2,913,250 2,909,400 3,500 11,000 j $5,000 J. 109,063,900 Total ».- 409,773,225 637,851,180 582,443,020 85,069,950 47,980,900 437,000 2,557,000 i 5,000 I 50,000 1,766,167,275 IN HANDS OF FEDERAL RESERVE AGENT DEC. 31,1919. Boston $4,000,000 $8,760,000 ; $5,120,000 $2,200, SI, 200,000 $1,700,000 I %1,100,000 $1, 600,000 $3,000,000 $28,680,000 New York 17,000,000 4,000,000 | 20,000,000 10,000, 40,000,000 5,000,000 10,000,000 4,000,000 6,000,000 116,000,000 X Philadelphia... 4,460,000 4,480,000 6,000,000 3,200, 2,400,000 400,000 400,000 21,340,000 Cleveland 1,500,000 3,640,000 ; 1,440,000 5,600, 3,400,000 2,200,000 2,200,000 1,800,000 3,700,000 25,480,000 Richmond 1,660,000 3,230,000 j 4,000,000 1,880, 5,140,000 1,497,500 1,150,000 1,950,000 3,880,000 24,387,500 Atlanta 5,580,000 12,155,000 15,800,000 4,295, 6,470,000 190,000 425,000 j. 44,915,000 Chicago 520,000 1,520,000 2,800,000 2,400, 2,400,000 9,640,000 St. Louis 1,920,000 4,760,000 3,420,000 2,350, 2,000,000 600,000 800,000 1,900,000 3,750,000 21,500,000 Minneapolis 1,220,000 4,330,000 960,000 280 400,000 170,000 200,000 7,560,000 Kansas City... 720,000 680,000 720,000 1,890 780,000 300,000 700,000 5,790,000 Dallas 4,770,000 4,630,000 4,360,000 815 1,030,000 185,000 500,000 16,290,000 San Francisco. 150,000 1,000,000 1,150,000 Total. 43,350,000 52,185.000 64,620,000 34,910,000 65,220,000 12,242,500 i 17,475,000 11,400,000 21,330,000 I 322,732,500 i RECAPITULATION. On hand Dec. 31, 191S $46,935,000 172,841,000 $69,920,000 $39,207,000 $70,482,000 $299,385,000 I Received from Comptroller 481,020,000 715,880,000 682,960,000 128,600,000 62,800,000 $33,800,000 $70,400,000 $18,000,000 $32,000,000 2,225,460,000 Returned by bank 452,833,225 708, 876,180 690,213,020 107,760,950 72,557,900 1,637,000 5,587,000 2,405,000 4,700,000 2,046,570,275 Total 980,788,225 1,497,597,180 1 443 093 020 275,567,950 205,839,900 35,437,000 75,987,000 20,405,000 36,700,000 4,571,415,275 Issued to banks 527,665,000 807,561,000 796,030,000 155,588,000 92,639,000 22,757,500 55,955,000 9,000,000 15,320,000 2,482,515,500 Returned for destruction 409,773,225 637,851,180 582,443,020 85,069,950 47,980,900 437,000 2,557,000 5,000 50,000 1,766,167,275 On hand Dec. 31, 1919 43,350,000 52,185,000 64,620,000 34,910,000 65,220,000 12,242,500 17,475,000 11,400,000 21,330,000 322,732,500 Total 980,788,225 1,497,597,180 1,443,093,020 275,567,950 205,839,900 35,437,000 75,987,000 20,405,000 36,700,000 4,571,415,275 CO CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 7.—Federal Reserve notes issued and redeemed by each Federal Reserve Bank, by months, during the calendar year 1919. January. February. March. April. Federal Reserve Bank. Outstanding Jan. 1, 1919. Issued. Redeemed. Issued. Redeemed. Issued. Redeemed. Issued. Redeemed. Boston S168,986,330 $2,300,000 $8,722,305 $10,960,000 $10,302,940 $17,500,000 $9,122,760 $21,500,000 $10,315730 New York 819,015,835 10,100,000 61,445,365 45,300,000 40,605,375 84,900,000 66,156,010 77,600,000 52,544400 Philadelphia 241,870,745 1,250,000 25,451,420 18,290,000 13,065,590 5,900,000 14,302,435 14,240,000 14,386250 Cleveland 266,519,915 2,000,000 13,957,930 3,795,000 9,417,105 4,210,000 10,106, 855 7,920,000 11,505,140 Richmond 150,997, 770 7,720,000 17,251,495 4,260,000 12,864,040 10,255,000 12,119,920 11,450,000 14,138,030 o w Atlanta 123,620,285 5, 715,000 14,376,845 9,550,000 9,166,860 13, 965,000 10, 810,365 11,115,000 12,536,030 H Chicago 450,938,010 4,240,000 11,011,320 9, 880,000 17,322,335 21,560,000 13, 835,635 21,800,000 15,209,960 O St. Louis 129,119,875 2,600,000 10,309,150 5,090,000 5,135,170 7,425,000 5, 969,685 4,160,000 8,334,240 Minneapolis 98,724,410 800,000 7,694,160 1,350,000 3,610,765 2,310,000 3,689,155 2,450,000 3,548,740 Kansas City 120,317,330 2,000,000 9,420,725 1,100,000 5,039,195 1,700,000 5,328,485 2,350,000 4,288,490 Dallas 60,495,080 2,185,000 5,732,050 360,000 4,603,740 1,775,000 3,253,660 740,000 2,857,850 San Francisco... 229,238,335 1,600,000 13,560,930 2,600,000 6,214,160 9,700,000 9,398, 775 18,680,000 14,637,860 Total, 1919. 2,859,843,920 • 42,510,000 198,933,695 112,535,000 137,347,275 181,200,000 164,093,740 194,005,000 164,302,720 Total, 1918. 1,350,624,225 56,015,000 39,780, 780 104,140,000 28,910,110 156,385,000 34,503,930 122,985,000 35,986,115 May. June. July. August. September. Federal Reserve Bank. Issued. Redeemed. Issued. Redeemed. Issued. Redeemed. Issued. Redeemed. Issued. Redeemed. w Boston $7, 700,000 $12,655,235 $16,500,000 $12,343,870 $19,820,000 $11,235, 770 $28, 700,000 $14, 732,285 27,400,0000 $10,423,930 New York.. 53,400,000 51,905,000 61,800,000 64,229,900 63,000,000 63,397, 700 67,140,000 51,603,700 63,340,000 50,113,900 o Philadelphia 20,240,000 18,793,660 17,200,000 19,743,645 17,800,000 15,389,785 21,900,000 17,157,325 19,400,000 14,884,230 Cleveland... 7,680,000 12,283,895 5,900,000 13,876,080 14,700,000 12,562,065 30,220,000 15,301,635 23,160,000 11,578,795 Richmond.. 3,272,500 12,200,375 5,670,000 12,093,170 6,440,000 9,818, 700 16,910,000 16,219,400 24,010,000 11,753,615 Atlanta 14,140,000 14,250,505 13,806,000 11,143,665 10,015,000 8,802,500 7, 797,000 12,007,245 20, 754,000 10,268,070 Chicago 20,400,000 19,339,680 25,720,000 25,153,205 24,520,000 21,386,550 33,360,000 26,710,210 39,240,000 22,160,650 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

St. Louis 8,270,000 | 10,098,500 | 6,240,000 6, 747,585 12,810,000 8,066,045 12,800,000 8,663,425 20,000,000 10,356,903 Minneapolis 3,800,000! 5,709,835 2,900,000 4,084,510 1,480,000 3,838, 815 2,050,000 4,050,060 8,080,000 3,194,590 Kansas City 3,250,000 I 5,022,965 3,080,000 5,008,940 3,870,000 4,570,940 5,940,000 6,683,975 9,920,000 | 5,839,240 Dallas.. 1,975,000 I 3,294,510 3,490,000 j 2,556,160 2,715,000 2,631,495 3,815,000 2,765,810 j 9,385,000 I 2, 735,575 San Francisco 9,240,000 I 11,510, 785 10,080,000 j 9,564,630 19,460,000 17,065,675 17,360,000 12,676,660 j 19, 800,000 9, 734,875 Total, 1919 153,367,500 j 177,064,945 172,386,000 186,545,360 196,630,000 178,766,040 247,992,000 188,571, 730 I 284,489,000 163,044,400 Total, 1918 135,430,000 49,850, 265 161,970,000 50,937,580 216,540,000 40,975,415 247, 750,000 45,056,320 | 341,380,000 41,778,950 X October. November. December. Total. 3 Federal Reserve Bank. Outstanding Dec. 31, 1919. s Issued. Redeemed. Issued. Redeemed. Issued. Redeemed. Issued. Redeemed. (—t H Boston •115,900,000 $15,122,195 $22,800,000 $14,152,220 $34,420,000 S10,639,120 S225,500,000 $139,768,360 $254, 717,970 New York 44,480,000 66,692,700 60,920,000 36,452,800 121,140,000 27,273,030 753,120,000 632,419,880 939,715,955 W Philadelphia... 22,300,000 14, 889,320 12,500,000 10,997,135 24,640,000 10,574,285 195,660,000 189,635,080 247, 895,665 Cleveland 13,120,000 13,700,225 19,960,000 11,731,370 30,900,000 10,262,050 163,565,000 146, 283,145 283,801,770 Richmond 34,110,000 13,182, 245 16,120,000 12,795,005 22,560,000 17,634,355 162, 777,500 162,070,350 151, 704,920 Atlanta 32,084,000 13,243, 785 20,867,000 13,515,235 23,790,000 16,989,360 183,598,000 147,110,465 160,107,820 Chicago 37,600,000 25,923,785 30,440,000 21,858,230 55,560,000 19,887,220 324,320,000 239, 798,780 I 535,459,230 St. Louis 22,900,000 7,481,860 18,530,000 287,985 13,200,000 9,975,345 134,025,000 98,425,920 I 164, 718,955 Minneapolis... 5,050,000 3,870,295 3,570,000 723,150 6,150,000 3,257, 730 39,990,000 50,271, 88,442,605 Kansas City... o, 430,000 5, 487,190 11,240,000 160,310 8,020,000 4, 811,120 57,900,000 67,661, 110,555,755 Dallas 9,525.000 1,989,540 11,065,000 670,815 8,700,000 2,489,810 55,730,000 37,581, 78,644,065 San Francisco. 21,260,000 9, 703,45.0 28,150,000 127,255 28,400,000 11,348,845 186,330,000 135,543, 280,024,435 o Total, 1919. i 263, 759,000 191,286,590 256,162,000 151,471,510 377, 480,000 145,142,270 2,482,515,500 2,046,570,275 3,295, 789,145 Total, 1018 ! 209,285,000 28,986,905 119,870,000 48,982,635 223,945,000 140, 726,300 2,095,695,000 586,475,305 2,859,843,920 CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 8.—Federal Reserve notes issued and redeemed, byldenominationsy during the calendar year 1919. a Outstanding | Outstanding Jan. 1, 1919. | Issued. Redeemed. Dec. 31,1919. $5 $440,840,850 ! $527,665,000 j $452,832,225 $515,673,625 $10 870,561,950 j 807,561,000 708;872,180 969,250,770 $20 1,114,942,220 i 796,030,000 690;220,020 1,220,752,200 $50 210,444,900 | 155,588,000 107,758,450 258,274,450 $100.... 215,054,000 • 92,639,000 72;558,400 235,134,600 $500.... 22,757,500 1,637,000 21,120,500 o $1,000.. 8,000,000 | 55,955,000 5,587,000 58,368,000 H $5,000.. 9,000,000 405,000 6,595,000 $10,000. 15,320,000 700,000 10,620,000 O Total. 2, 859, 843,920 J 2,482,515,500 2,046,570,275 3,295,789,145 H W CO W O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT B FEDERAL RESERVE NOTES. 97 Bfo. 9.—Total cost of Federal Reserve notes, including paper, preparing plates, and printing, but exclusive of shipping charges, for the calendar year 1919. Boston $249, 740. 82 New York 560, 529. 57 Philadelphia 181,403.08 Cleveland 117,477.71 Richmond 103,171.11 Atlanta 129,998.75 Chicago 340,059. 72 St. Louis 147, 782.40 Minneapolis 52,778.14 Kansas City 105,341. 50 Dallas 75,430. 60 San Francisco 136,133. 97 Total 2,199, 847. 37 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No, 10.—Federal Reserve agents' accounts at close of business Dec. 31, 1919. 00 Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. RESOUBCES. Federal Reserve notes on hand $28,680,000.00 $116,000,000.00 $21,340,000.00 $25,480,000.00 $24,387,500.00 $44,915,000.00 *3 Federal Reserve notes outstanding 254,717,970.00 939,715,955.00 247,895,665.00 283,801,770.00 151,704,920.00 160,107,820. 00 ^ Collateral security for Federal Reserve notes outstanding: Gold and gold certificates 183,740,280.00 37,025,000.00 2,500,000.00 fcd Gold redemption fund 13,510,970.00 13,015,935. 00 14,558,905.00 16,769.225. 00 1,998,970.00 3,003,220.00 § Gold settlement fund—Federal Reserve Board 60,000,000.00 110,000,000.00 74,389,260.00 75,000,000.00 38,000,000.00 58,000,000.00 g Eligible paper- Amount required 181,207,000.00 632,959,740.00 158,947,500.00 155,007,545.00 111,705,950.00 98,604,600.00 o Excess amount held 25,480,726.26 358,584,450.09 6,244,517.51 55,726,284.97 3,392,277.05 12,740,067. 98 ^ Total. 563,596,666.26 2,354,016,360.09 523,375,847.51 648,809,824.97 331,189,617.05 377,870,707.98 LIABILITIES. Federal Reserve notes received from comptroller—gross 476,300,000. 00 2,001,000,000.00 510,780,000.00 484,320,000. 00 305,860,000.00 298,000,000.00 Less amounts returned for destruction 192,902,030.00 945,284,045. 00 241,544,335. 00 175,038,230.00 129,767,580.00 92,977,180. 00 Net amount of Federal Reserve notes received from Comptroller of the Currency 283,397,970. 00 1,055,715,955.00 269,235,665.00 309,281,770. 00 176,092,420. 00 205,022,820. 00 Collateral received from Federal Reserve Bank: Gold 73,510,970.00 306,756,215.00 88,948,165.00 128,794,225.00 39,998,970.00 63,503,220.00 Eligible paper 206,687,726.26 991,544,190.09 165,192,017.51 210,733,829.97 115,098,227.05 109,344,667.98 Total. 563,598,666.26 2,354,016,360.09 523,375,847.51 648,809,824.97 331,189,617.05 377,870,707.98 O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

..Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Total. RESOURCES. Federal Reserve notes on hand $9,640,000.00 $21,500,000.00 $7,560,000.00 $5,790,000. 00 $16,290,000. 00 SI, 150,000.00 $322,732,500.00 Federal Reserve notes outstanding 535,459,230. 00 164,718,955. 00 88,442,605.00 110,555,755.00 78,644,065.00 280,024,435.00 3,295,789,145.00 Collateral security for Federal Reserve notes outstanding: Gold and gold certificates 4,000,000. 00 13,052,000.00 8,831,000.00 249,148,280.00 Gold redemption fund 8,459,730.00 3,694,115.00 2,994,605.00 2,048,970.00 4,229,580.00 18,831,935.00 103,116,160.00 Gold settlement fund—Federal Reserve Board 235,144,500.00 53,930,600.00 19,800,000.00 37,360,000.00 14,484,000.00 110,218,500.00 886,326,860.00 W Eligible paper- W Amount required 291,855,000. 00 103,094,240.00 52,596,000.00 71,146,785.00 51,099,485.00 150,974,000. 00 2,057,197,845.00 H Excess amount held 87,480,182.28 7,263,830.82 21,564,777.53 40,873,559.86 13,012,559.59 12,924,308.13 645,287,542. 07 W Total. 1,168,038,642.28 358,201,740.82 206,009,987.53 267,775,069. 86 186,590,689.59 574,123,178.13 7,559,598,332.07 Federal Reserve notes received from comptroller—gross 14,720,000.00 299,600,000. 00 152,080,000. 00 203,260,000.00 143,700,000. 00 409,920,000. 00 6,119,540,000. 00 Less amounts returned for destruction 19,620,770. 00 113,381,045.00 56,077,395.00 86,914,245.00 48,765,935. 00 128,745,565. 00 2,501,018,355.00 Net amount of Federal Reserve notes received from Comptroller of the Currency 545,099,230.00 186,218,955. 00 96,002,605.00 116,345,755.00 94,934,065.00 281,174,435. 00 3,618,521,645.00 Collateral received from Federal Reserve Bank: Gold 243,604,230. 00 61,624,715.00 35,846,605.00 39,408,970. 00 27,544,580.00 129,050,435. 00 1,238,591,300.00 Eligible paper 379,335,182.28 110,358,070.82 74,160,777.53 112,020,344.86 64,112,044.59 163,898,308.13 2,702,485,387.07 o Total- 1,168,038,642.28 358,201,740.82 206,009,987.53 267,775,069. 86 186,590,689.59 574,123,178.13 7,559,598,332.07 H m CO CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 11.—Amounts of Federal Reserve notes received from and returned to other Federal Reserve Banks for redemption or credit during the calendar O year 1919 and totals for 1918 and 1917. o Boston. New York. Philadelphia. Cleveland. Richmond. Received. Returned. Received. Returned Received. Returned Received. Returned. Received. Returned. Boston $59,860,250 $33,280,800 $4,370,700 $3,382,000 $4,528,700 $1,655,100 $4,367,850 $2,250,250 New York $45,236,150 $59,738,000 47,221,750 59,800,500 35,792,100 21,783,650 31,924,350 22,233,259 Philadelphia 4,247,000 6,872,600 59,310,500 54,441,950 11,133,500 9,567,500 9,899,870 13,156,250 od Cleveland 2,325,250 4,427,450 22,815,150 24,882,550 10,451,000 8,798,000 6,876,600 9,627,500 Richmond 2,237,750 4,392,150 22,394,000 24,859,000 7,180,750 7,897,500 9,771,000 5,728,850 w Atlanta 1,607,830 2,470,650 12,802,160 14,603,700 1,874,200 3,510,500 4,605,380 3,060,400 6,217,370 8,539,250 H Chicago 3,681,000 6,369,450 28,768,500 29,202,250 3,906,900 5,633,000 19,028,500 16,439,300 5,425,000 8,955,500 O St. Louis 1,073,035 1,219,550 9,962,820 5,983,050 1,123,805 1,477,000 6,225,265 1,703,850 2,662,005 2,597,000 w Minneapolis 420,000 1,378,050 3,414,000 4,091,350 395,000 1,068,500 1,099,000 1,515,550 524,000 2,027,750 Kansas City 522,400 1,621,300 4,883,200 5,489,350 571,100 1,452,500 1,716,20b 1,762,250 1,001,200 2,146,000 Dallas 306,605 509,100 3,178,600 2,522,950 392,800 512,500 894,700 480,600 575,250 757,500 San Francisco 1,062,445 1,294,600 8,018,610 11,028,250 811,880 993,050 1,881,210 866,850 1,332,320 620,750 Total: 1919.. 62,719,465 90,292,900 235,407,790 210,385,200 78,299,885 94,525,050 96,675,555 64,563,900 70,805,815 72,911,000 1918.. 21,660,305 37,931,700 118,050,470 118,629,200 39,531,305 62,354,660 40,366,135 21,249,450 31,113,635 26,603,050 1917. 4,278,835 12,012,900 29,997,052 24,799,975 8,066,790 14,960,902 5,175,740 2,534,070 6,450,175 2,080,430 Atlanta. Chicago. St. Louis. Minneapolis. Kansas City. Received. Returned. Received. Returned. Received. Returned. Received. Returned. Received. Returned. o w Boston $2,439,250 $1,584,360 $6,311,850 $3,908,000 $1,207,350 $1,098,565 $1,405,650 $451,000 $1,618,950 $522,400 New York... 18,361,150 14,014,420 40,400,150 28,930,000 7,747,100 10,234,335 5,693,250 3,376,000 7,450,700 4,908,700 Philadelphia 3,617,500 2,770,980 6,951,510 6,150,000 1,526,500 2,037,755 1,124,500 556,500 1,504,000 858,200 Cleveland... 3,434,950 4,948,010 19,259,550 19,071,000 1,993,200 6,237,965 1,804,550 1,104,500 2,080,850 1,721,200 Richmond.. 8,699,750 6,271,540 8,873,310 5,490,500 2,582,000 2,705,855 2,069,250 524,000 2,148,500 1,019,500 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Atlanta 6,792,795 6,340,000 | 8,802,075 | 9,518,855 1,017, | 550,000 fi§[2,040, [1,617,500 Chicago 6,145,500 6,975,840 13,102,000 | 25,107,085 18,446, 15,714,000 14,637, 10,335,250 St. Louis 9,271,360 9,506,250 25,007,785 13,137,000 i 1,873, 950,000 9,053, 8,200,400 Minneapolis 571, 500 1,063,500 15,834,500 18,418,000 | 953,500 1,871,705 2,518, 2,402,050 Kansas City... 1,677,400 2,381,450 10,335,250 14,621,500 | 8,200,400 9,093,880 2,402, 2,510,000 Dallas 2,820,850 4,139,000 2,310,850 3,270,000 | 2,805,705 5,495,840 392, 378,500 3,208; 4,015,150 San Francisco.. 1,357,935 965,310 7,900,180 10,269,500 i 1,550,095 2,157,445 3,377, 3,589,000 5,345, 4,201,550 Total: 1919. 58,397,145 54,620,660 149,977,730 129,605,500 1 50,469,925 75,559,285 39,606, 29,703,500 51,607, 39,801,900 M 1918. 21,107,515 20,438,925 49,708,155 51,456,600 j 15,019,535 37,557,760 14,296, 9,115,300 33,604, 6,320,605 W 1917. 6,210,710 4,650,150 5,129,265 15,268,500! 3,344,960 7,979,770 5,537, 1,351,000 7,783, 1,118,755 h-i W H Dallas. San Francisco. Total, 1919. Total, 1918. Total, 1917. W Received. Returned. Received. Returned. Received. | Returned. Received. Returned. Received. Returned. Boston ! $494,200 $356,800 $1,277,800 $1,075,745 $87,882,550 j $49,565,020 $38,274,400 $22,594,955 $11,941,700 $4,219,425 New York 3,581,350 3,092,900 14,769,350 8,018,955 258,177,400 j 236,130,710 112,964,740 114,610,170 25,374,715 30,324,987 Philadelphia... 548,000 509,000 1,044,500 1,280,495 100,907,380 ! 98,201,230 64,559,000 47,705,480 14,515,907 8,010,485 Cleveland 606,700 811,300 1,044,950 1,866,410 j 72,692,750 j 83,495,885 20,926,210 39,974,500 2,528,325 4,999,655 Richmond 734,750 595,700 635,250 1,356,250 j 67,326,310 | 60,840,845 24,063,090 31,546,690 2,070,680 6,392,235 Atlanta 3,857,150 2,824,450 940,855 1,346,100 50,558,270 ! 54,381,405 20,947,940 21,385,120 4,654,345 6,117,975 Chicago 3,229,500 2,112,950 10,172,000 7,783,965 126,542,400 j 134,628,590 53,422,845 48,857,010 15,079,650 5,006,115 St. Louis 5,458,235 2,738,850 2,128,495 1,529,745 73,840,035 j 49,042,695 38,591,215 15,431,645 8,022,765 3,418,680 Minneapolis 339,000 415,350 3,921,000 3,592,310 29,989,500 j 37,844,115 9,435,930 13,906,250 1,327,000 5,508,090 Kansas City 3,945,150 2,973,800 4,175,550 5,389,250 39,429,900 j 49,441,280 5,525,100 25,886,340 1,110,855 7,895,375 Dallas 2,280,850 2,027,590 19,167,660 i 24,108,730 14,782,020 11,614,220 3,536,050 5,760,020 San Francisco.. 1,971,060 1,742,500 34,608,625 | 37,728,805 7,631,520 15,094,765 1,933,625 4,456,440 Total: 1919. 24,765,095 18,173,600 42,390,600 35,266,815 961,122,780 I 915,409,310 1918. 11,083,945 11,855,210 15,582,545 5,094,685 411,124,010 408,607,145 1917. 5,765,280 3,506,950 4,355,640 1,843,080 92,095,617 92,109,482 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 1%*—Federal Reserve bank notes, by denominations, printed, issued by the Comptroller of the Currency since organization of banks, and on hand Dec. 31, 1919. Bank. Ones. Twos. Fives. Tens. Twenties. Fifties. Total. Boston: Printed $18 380,000 $11 104 000 $2,200,000 $31 684,000 Issued 17,096,000 8,184,000 2,180,000 27,460,000 On hand 1,284,000 2,920,000 20,000 4,224,000 Now York: i Printed 61,712,000 16,120,000 32,000,000 $2,000,000 114,832,000 Issued 51,604,000 13,928,000 13,840,000 1,440,000 80,812,000 On hand 13,108,000 2,192,000 18,160,000 560,000 34,020,000 w ."Philadelphia: Print or] . .. 26,032,000 6,056,000 8,320,000 440,000 $240,000 41,088,000 Issued . 25,940,000 5,856,000 7,000,000 38,796,000 On hand 92,000 200,000 1,320,000 440,000 240,000 2,292,000 Cleveland: Printed 18 508 000 5 000;000 9,000,000 2,000,000 2,000,000 36,508,000 Issued 18,456,000 4,808,000 5,440,000 28,704,000 On hand - 52,000 192,000 3,560,000 2,000,000 2,000,000 7,804,000 Richmond: w Printed 12,096,000 2,880,000 3,500,000 400,000 400,000 19,276,000 o > Issued 12,040,000 1,914,000 13,984,000 On hand . 56,000 936,000 3,500,000 400,000 400,000 5,292,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Atlanta: Printed 14,780,000 2,336,000 4,640,000 480,000 480,000 400,000 23,116,000 Issued 14,488,000 2,112,000 2,240,000 360,000 160,000 19,360,000 On hand 292,000 224,000 2,400,000 120,000 320,000 400,000 3,756,000 Chicago: Printed. . 32,516,000 9,080,000 16,600,000 3,800,000 1,600,000 63,596,000 Issued 32,456,000 8,064,000 7,820,000 2,760,000 1,600,000 52,700,000 On hand 60,000 1,016,000 8,780,000 1,040,000 1 • 10,896,000 0 St. Louis: Printed 14,300,000 3,640,000 5,000,000 1,000,000 480,000 200,000 24,620,000 Issued 13,744,000 2,736,000 4,980,000 1,000,000 400,000 22,860,000 On hand 556,000 904,000 20,000 80,000 200,000 1,769,000 3 g Minneapolis: Printed-.. 9,292 000 1 752 000 4,820,000 2 680 000 18,544,800 Issued 7,532,000 1,688,000 920,000 10,140,000 On hand 1,760,000 64,000 3,900,000 2,680,000 8,404,000 Kansas City: I Printed 9,996,000 2,504,000 12,360,000 5,040,000 3,600,000 33,500,000 Issued 9,548,000 2,048,000 11,140,000 5,040,000 3,600,000 31,376,000 On hand 448,000 456,000 1,220,000 2,t24,000 o CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 12,—Federal Reserve bank notes, by denominations, printed, issued by the Comptroller of the Currency since organization of banks, and on hand Dec. SI, 1919—Continued. Bank. Ones. Twos. Fives. Tens. Twenties. Fifties. Total. Dallas: Printed .. $8,076,000 $2,168,000 $4,140,000 $2,400,000 $2,000,000 $18,784,000 Issued . . .. 7,808,000 1,416,000 2,000,000 1,960,000 1,760,000 14,944,000 On hand 268,000 752,000 2,140,000 440,000 240,000 3,840,000 San Francisco: Printed 14 280 000 3 544,000 7,660,000 1,960 000 1 360 000 28 804 000 Issued 9,804,000 2,736,000 4,280,000 16,820,000 On hand 4,476,000 808,000 3,380,000 1,960,000 1,360,000 11,984,000 RECAPITULATION. Total printed 242,968,000 66,184,000 110,240,000 22,200,000 12,160,000 $600,000 454,352,000 Total issued 220,516,000 55,520,000 61,840,000 12,560,000 7,520,000 357,956,000 Total on hand 22,452,000 10,664,000 48,400,000 9,640,000 4,640,000 600,000 96,396,000 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 13.— Total amount of Federal Reserve bank notes issued to Federal Reserve Banks, also amounts redeemed and outstanding, Dec. 31, 1919. Bank. Ones. Twos. Fives. Tens. Twenties. Fifties. Total. Boston: Issued $17,096,000 $8,184,000 $2,180,000 $27,460,000 Redeemed 3,751,472 1,357,728 1,002,800 6,112,000 n Outstanding 13,344,528 6,826,272 1,177,200 21,348,000 w New York: Issued ... 51,604,000 13,928,000 13,840,000 $1,440,000 80,812,000 1-3 Redeemed 9,299,408 2,883,342 9,134,150 755,100 22,072,000 W Outstanding 42,304,592 11,044,658 4,705,850 684,900 58,740,000 Philadelphia: Issued 25,940,000 5,856,000 7,000,000 38,796,000 Redeemed 3,878,228 659,622 4,010,150 8,518,000 Outstanding 22,061,772 5,196,378 2,989,850 30,248,000 Cleveland: Issued 18,456,000 4,808,000 5,440,000 28,704,000 Redeemed 1,921,370 466,630 3,181,000 5,569,000 Outstanding 16,534,630 4,341,370 2,259,000 23,135,000 o Richmond: Issued 12,040,000 1,944,000 13,984,000 Redeemed 1,532,510 211,490 1,744,000 Outstanding . . 10,507,490 1,732,510 12,240,000 ======== O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 13. — Total amount of Federal Reserve bank notes issued to Federal Reserve Banks, also amounts redeemed and outstanding, Dec. 31, 1919—Con. o Bank. Ones. Twos. Fives. Tens. Twenties. Fifties. Total. Atlanta: Issued $14,488,000 $2,112,000 $2,240,000 $360,000 $160,000 $19,360,000 Redeemed 1,878,380 261,620 1,398,400 3,538,400 Outstanding 12,609,620 1,850,380 841,600 360,000 160,000 15,821,600 Chicago: Issued . 32,456,000 8,064,000 7,820,000 2,760,000 1,600,000 52,700,000 o w Redeemed 4,504,290 875,710 3, 718,940 1,293,780 209,480 10,602,200 H Outstanding 27,951,710 7,188,290 4,101,060 1,466,220 1,390,520 42,097,800 o St. Louis: H Issued 13,744,000 2,736,000 4,980,000 1,000,000 400,000 22; 860,000 W Redeemed 2,327,848 570,302 2,422,650 519,200 5,840,000 Outstanding 11,416,152 2,165,698 2,557,350 480,800 400,000 17,020,000 Minneapolis: Issued 7,532,000 1,688,000 920,000 10,140,000 Redeemed 999,490 291,010 461,500 1,752,000 Outstanding 6,532,510 1,396,990 458,500 8,388,000 Kansas City: Issued 9,548,000 2,048,000 11,140,000 5,040,000 3,600,000 31,376,000 Redeemed. 1,514,200 301,800 4,295,630 3,374,830 1,689,540 11,176,000 % Ou standing 8,033,800 1,746,200 6,844,370 1,665,170 1,910,460 20,200,000 d Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Dallas: Issued 7,808,000 1,416,000 2,000,000 1,960,000 1,760.000 14,944,000 Redeemed 845,780 226,220 943,370 1,102,290 861,940 3,979,600 go Outstanding 6,962,220 1,189,780 1,056,630 857,710 898,060 10,964,400 00 ^San Francisco: to Issued 9,804,000 2,736,000 4,280,000 16,820,000 I Redeemed 1,185,588 358,162 2,028,250 3,572,000 Jo Outstanding 8,618,412 2,377,838 2,251,750 13,248,000 w RECAPITULATION. td Total issued 220,516,000 55,520,000 61,840,000 12,560,000 7,520,000 357,956,000 H M Total redeemed 1 33,638,564 8,463,636 32,596,840 7,045,200 2,760,960 84,505,200 W Total outstanding 186,877,436 47,056,364 29,243,160 5,514,800 4,759,040 273,450,800 1 Exclusive of $4,328,000 received for destruction but not assorted by denominations. g m i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 14.—Currency receipts and shipments of each Federal Reserve Bank, by months, during the calendar year 1919. O 00 Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Month. Receipts. Shipments. Receipts. Shipments. Receipts. Shipments. Receipts. Shipments. Receipts. Shipments. Receipts. Shipments. January $47,000,000 $17,172,800 $173,022,018 $84,177,000 $47,191,945 $18,370,300i $47,863,327 $16,629,866 $24,463,225 $8,019,600 $22,046,434 $6,478,050 February | 28,280,000 26,440,000j 90,711,068 97,106,000 32,030,619 25,761,1501 22,812,524 26,415,774 13,560,105 10,004,996! 12,266,576 7,802,525 March 33,842,000 26,579,000 94,967,955 139,214,000 28,172,620 25,565,400! 24,350,299 22,259,917| 13,295,267 9,452,3471 16,273,899 9,579,600 April 40,293,000 27,674,000 121,521,898 128,419,000 39,959,215 27,421,050! 27,562,003 24,625,774! 15,936,101 8,408,193; 17,522,876 8,842,550 May 47,230,000 17,761,625 137,293,989 137,036,000 40,681,745 27,192,000j 32,194,425 19,313,854 15,117,504 9,266,502; 20,081,941 10,756,969 o June 41,987,000 31,536,000 142,255,416 204,635,000 37,295/ 26,538,600| 31,149,143 21,191,348 13,213,401 9,603,695J 16,758,229 9,984,660 3 July 47,230,000 37,408,000 156,222,645 195,979,000 38,394,924 32,617,025! 36,798,066 29,193,882 13,672,641 11,223,655J 20,410,755 9,291,960 August 38,688,000 38,885,000 135,234,802 157,341,000 33,425,219 36,287,240; 25,940,074 40,329,582 10,359,626 14,505,900| 17,350,369 13,627,593 September. 39,525,000 37,980,000 139,255,009 138,395,000 36,468,581 34,991,090| 28,415,754 40,159,578 8,526,287 22,760,610 13,440,796 23,765,016 w October 53,832,000 41,164,000 157,523,946 150,323,000 37,026,356 41,637, OOOj 35,668,486 34,733,156 11,181,903 34,882,479 16,936,221 32,814,774 November. 36,890,000 39,076,000 127,139,007 170,904,000 30,064,643 43,312,472 27,879,607 36,242,091 12,350,608 17,688,320 17,623,546 20,082,141 December.. 51,056,000 60,664,000 179,009,046 230,942,000 43,763,463 49,575,732 42,662,296 51,028,532 17,599,750 21,504,290 28,653,391 22,427,375 Total. 505,853,000 402,340,425 1,654,156,799 1,834,471,000 444,475,010 389,269,059 383,296,004 362,123,354 169,276,418 177,320,587 219,365,033 175,453,213 W O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Total. Month. Ship- Ship- Ship- Ship- Ship- Receipts. ments. Receipts. | ments. meX Receipts. ments. Receipts. Receipts. ments. Receipts. ments. January $70,026,304 $24,125,274 $28,205,817 $5,975,505 56,992,573,11;833,910£11,693,026 $2,314,563 $11,710,299 $2,104,108 $30,290,657 $7,855,270 $520,505,625 $195,056,246 February 29,798,731 36,352,010! 16,233,817 9,434,9751 3,144,993J 2,885,020 7,682,068 4,757,611 6,876,183 3,556,432 15,783,076 9,817,300 279,179,760 260,333,793 March 34,679,881j 42,705,348| 18,621,616 ll,102,060| 3,043,424! 3;606,75; 7,960,790 6,367,226 5,343,083 4,712,700 15,050,793 11,248,1 295,601,627 312,392,441 April I 44,528,303i 43,008,564 24,215,53lj 8,489,470| 4,878,647 3;269,227 8,288,225 5,450,230 5,482,689 4,343,472j 14,303,083 15,311,625 364,491,571 305,263,155 May I 56,342,781! 38,658;687 22,762,239 12,065,088j 6,898,862 2}341,980 10,997,385 6,188,085 4,975,116 4,581,155J 18,288,574 14,095,975 412,864,561 299,257,920 June 54,307,036| 41,723;003| 24,163,503 11,307,7941 4,902,963J 3,357,280 11,542,070 6,269,993 3,578,568 7,182,435! 16,747,331 14,940,506J 397,900,340 388,270,314 H July 64,181,283i 49,328.576J 26,441,329 13,774,305j 6,,588,758! 2.889,635 13,474,045 9,172,601 5,952,929 6,505,384j 22,918,132 15,715,445| 452,285,507 413,099,468 August 45,640,36lJ 66,852;899; 21,066,539 18,527,654 4,:306,731; 3.773,300 10,843,909 11,808,110 4,775,854 7,147,3911 15,067,142 21,266,165! 362,698,626! 430,351,834 September 51,399;991 49,093.997| 23,372,992 23,827,274 361,536j 8.226,550 11,764,731 13,483,933 4,933,440 14,096,3401 16.298,689 23,325,043; 376,762,806J 430,104,431 October 64,344; 690 68,545;1971 26,258,479 32,870,931 854,718| 7;010,146 14,123,099 10,729,309 6,327,253 14,804, OOoj 19.907,681 21,602,635j 447,984,832J 491,116,632 November 56,150,431 62,872,099| 24,654,489 29,541,084 257,845! 5.949,470 10,270,138 12,935,188 5,116,973 13,470,784 15,618,219 29,848,445, 368,015,506| 481,922,094 December 76,770022.,077 90,922,,456 32,741,115 28,531,008! 4,116,039i 7.682,977 14,594,798 13,690,725 10,715,869 12,214,053 24,820,307 30,554,665! 526,434,151! 619,737,813 Total 648,101,869,614,188,110288,737,466 205,447,148:57,347,08952,826,250 133,234,284 103,167,574 75,788,256 94,718,259225,093,684 215,581,162 4,804,724,91214,626,906,141 o CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 15.—Currency receipts from and shipments to member and nonmember banks during calendaf year 1919. Receipts. Shipments. Excess. Federal Reserve Bank or branch. From b a m nk e s m . ber me F m ro b m er n b o a n n - ks. Total. To b m an e k m s. ber mem T b o e n r o b n a - nks. Total. Receipts. Shipments. Boston $462,144, $43,708,906 $505,853,000 $401,317,115 $1,023,310 $402,340,425 $103,512,575 New York 1,412,385, 193,401,002 1,605,786,206 1,727,348,000 48,452,000 1,775,800,000 $170,013,794 Buffalo 37,766, 10,603,714 48,370,593 46,099,000 12,572,000 58,671,000 10,300,407 Philadelphia... 430,627, 13,847,011 444,475,010 389,045,559 223,500 389,269,059 55,205,951 o (leveland 111,189, 2,886,821 114,076,129 102,945, 982 1,920,671 104,866,653 9,209,476 Cincinnati.. 78,580, 504,910 79,084,971 54,924,164 554,310 55,478, 474 23,606,497 H Pittsburgh. 187, 865, 2,269,024 190,134,904 200,867,129 911,098 201,778,227 11,643,323 O Richmond 76,561, 559,356 77,120,581 110,017,324 213,079 110, 230,403 33,109, 822 Baltimore.. 91,712, 443,606 92,155, 837 66,958,584 131,600 67,090,184 25,065,653 w •Ulanta. 89,565, 1,033,547 90,599,358 61,116,037 42,000 61,158,037 29,441,321 Birmingham 27,532, 1,268,453 28,800,671 26,014,993 26,014,993 2,785,678 Jacksonville 22,151, 405, 881 22,557,502 24,514,362 18,000 24,532,362 1,974,860 Nashville 4,399, 4,399,982 3,817,000 3,817,000 582,982 New Orleans 64,657, 173,050 64,830,220 50,609,221 155,000 50,764,221 14,065,999 Savannah (agency).. 8,177, 8,177,300 9,166,600 9,166,600 Chicago 478,267,198 6,638,672 484,905, 870 429,660,144 5,079,023 434, 739,167 50,166, 703 Detroit 163,131.052 j 64,947 163,195,999 179,445,443 3,500 179,448,943 16,252,944 St. Louis 181,178,675 I 12,132,962 193,311,637 116,986,993 2,521,452 119,508,445 73,803,192 Little Rock 16,568,320 j 385,106 16,953,426 14,065,411 294,500 14,359,911 2,593,515 Louisville 43,320;876 ! 63,530 43,384,406 24,316,042 88,350 24,404,392 18,980,014 to Memphis 32,129,988 2,958,009 35,087,997 46,938,100 236,300 47,174,400 12,086,403 o Minneapolis 56, 863,140 483,949 57,347,089 52,451,150 375,100 52,826,250 4,520,839 Kansas City 91,529,638 764,305 92,293,943 66,628, 724 501,034 67,129,758 25,164,185 Denver 23, 724,550 17.329 23,741,879 14,046,230 187,400 14,233,630 9,508,249 Omaha 17,178,132 20.330 17,198,462 21, 786,346 17, 840 21,804,186 4,605,724 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Dallas 52,931,363 1,102,983 54,034,346 66, 448, 740 345, 765 66,794,505 ! 12,760,159 El Paso 12,364,589 1,185,039 13,549,628 11, 846,224 1,957, 800 13, 804,024 i 254,396 Houston 7,284,534 919,748 8,204,282 11,850,030 2,269, 700 14,119, 730 | 5, 915, 448 San Francisco 136,774,081 13,286,307 150,060,388 135,263,610 7,687,331 142,950,941 I 7,109,447 Portland 19,452,705 87,368 | 19,540,073 24,080,456 178,900 24,259,356 4,719,283 Salt Lake City. 13,109,751 84,795 j 13,194,546 8,144, 250 2,230,150 | 10,374,400 2,820,146 Seattle 34,549,588 951,723 j 35,501,311 26,390,900 3,287,465 29,678,365 5,822,946 Spokane 0,704,213 93,153 6,797,366 7,990,500 327,600 8,318,100 1,520,734 fej Total 4,492,379,37( 312,345,536 4, 804, 724,912 4,533,100,363 93,805,778 4,626,906,141 177,818, 771 X W . w H W o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Exhibit C—STATEMENTS OF CONDITION OF FEDERAL RESERVE BANKS. No. 16.—Combined resources and liabilities of all Federal Reserve Banks as at close of business on the last Friday of each month during the calendar year 1919. RESOURCES. [In thousands of dollars.] Jan. 31. Feb. 28. I Mar. 28. Apr. 25. May 29. June 27. July 25. Aug. 29. j Sept. 26. Oct. 31. Nov. 28. Dec. 20. Gold and gold certificates 338,916 345,762 326,791 340,022 346,618 314,135 270,601 244,231 | 239,168 254,027 j 235,348 229,445 Gold settlement fund, Federal Reserve Board. 422,686 463,484 |563,577 605,809 586,742 597,046 591,532 563,640 I 502,506 444,126 | 440,286 352,785 G old with foreign agencies 5,828 5,829 ! 5,829 79,370 129,923 ! 135,696 134,320 Total gold held by banks— 767,430 815,075 896,179 945,831 933,360 911,181 862,133 807,871 821,044 828,076 811,330 716,550 Gold with Federal Reserve agents. 1,253,330 1,187,760 1,113,070 1,109,949 1,131,725 1,113,824 1,108,051 1,142,589 1,196,325 1,205,576 1,148,724 1,240,032 w G old redemption fund 91,346 120,163 133,038 113,436 122,658 122,779 124,967 116,328 100,485 104,348 133,587 121,850 8 Total gold reserves. 2,112,106 2,122,998 2,142,3052,169,216 2,187,743 2,147,784 2,095,151 2,066,788 2,117,854 ,138,000 2,093,641 2,078,432 Legal-tender notes, silver, etc I 67,510 65,725 68,219 70,936I 67,363 68,472 65,872 69,188 69,651 67,592 66,025 57,104 Total reserves |2,179,646 ;8,7232,210,524 2,240,152 |2,255,106 2,216,256 2,161,023 2,135,976 2,187,505 2,205,592 2,135,536 Bills discounted: j Secured by Government war obligations* jl,357,571 1,667,965 1,691,010 1,760,672il,802,893 1,573,483 1,616,210 ,609,296 1,572,503 ,681,082 jl, 736,033 1,510,364 g All other j 243,557 211,855 195,230 189,740 186,499 244,557 251,392 205,838 309,779 447,465 478,17b 684,514 Bills bought in open marketf I 281,293 276,919 248,107 185,822 183,650 304,558 375,556 363,138 342,491 394,355 495,595 585,212 Total bills on hand jl, 882,421 2,156,739 2,134,347 2,136,234|2,173,0422,122,598 2,243,158 2,178,272 2,224,773 2,,522,902 2,709,804 2,780,090 o United States Government bonds j 28,252 27,094 27,138 27,135j 27,131 27,130 27,086 27,096 27,097 26,845 26,848 26,834 United States Victory notes \ 335 286 198 137 84 57 64 United States certificates of indebtedness j 266,532 155,688 173,797 191,501 I 201,800 204,104 212,028 243,411 251,081 274,325 288,032 273,507 All other earning assets 4 4 3 Total earning assets 2,177,209 2,339,525 2,335,285 2,354,870 2,402,056 2,354,167 2,482,558 2,448,977 2,503,088 2,824,156 3,024,741 3,080,495 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank premises 9,713 ", 712 10,574 10,986 11,257 11,784 12,796 13,146 13,357 12,878 13,002 Gold in transit or in custody in foreign countries. 107,119 80,246 19,242 Uncollected items and other deductions from gross deposits 691,454 653,465 660,066 630,614 634,639 686,063 690,495 709,394 827,404 855,795 1,013,426 1,075,100 5 per cent redemption fund against Federal Reserve bank notes j 6,767 6,813 7,067 8,176 8,963 9,714 10,613 11,580 11,503 13,333 12,671 13,237 All other resources 11,631 8,497 7,274 8,301 10,035 10,551 9,898 9,995 7,869 6,659 8,062 Total resources. 5,075,355 5,206,736 5,229,928 5,252,687 5,321,785 5,288,008 5,366,371 5,435,837 5,631,890 5,939,344 6,230,041 6,325,432 * Includes bills discounted for other Federal Reserve Banks, viz 46,073 53,816 74,409 90,964 112,865 122,607 84,900 53,655 70,195 28,948 23,500 40,615 t Includes bankers' acceptances bought from other Federal Reserve Banks: With their indorsement 16,918 25,841 4,098 7,159 858 5,062 40,474 Without their indorsement 2,112 14,400 32,390 26,380 26,429 27,456 48,579 39,432 31,702 45,864 96,440 58,201 LIABILITIES. Capital paid in. 80,913 81,452 81,641 82,015 82,589 82,764 83,317 84,926 85,296 86,013 87,001 87,339 Surplus 22,738 22,738 49,466 49,466 49,466 49,466 81,087 81,087 81,087 81,087 81,087 81,087 Government deposits 64,928 210,547 168,147 91,726 141,479 73,614 116,038 54,494 61,276 I 100,465 98,157 72,357 Due to members—reserve account.. 1,693,132 1,620,972 1,631,167 1,664,320 1,656,118 1,713,030 1,718,396 1,729,950 1,731,413 ll, 833,4811,844,434 1,786,874 Deferred availability items 472,042 494,653 484,906 491,605 517,638 534,420 535,178 563,387 653,381 j 693,766 861,436 822,680 Other deposits, iacluding foreign government credits. 120,809 124,022 117,271 135,057 150,324 115,693 117,444 98,479 95,654 97,843 98,798 97,659 Total gross depo its 2,350,911 2,450,194 2,401,491 2,382,708 12,465,559 2,436,757 2,487,056 2,446,310 2,541,724 2,725,555 2,902,825 2,779,570 Federal Reserve notes in actual circulation 2,450,729 2,472,307 2,521,776 2,549,552 2,519,292 2,499,180 2,504,497 2,580,629 2,655,354 2,752,876 2,852,277 3,057,646 Federal Reserve bank notes in circulation—net liability 129,445 134,042 145,540 158,848 168,427 177,185 193,849 219,815 239,451 254,933 256,793 261,039 All other liabilities 40,619 46,003 30,014 30,098 36,452 42,656 16,565 23,070 28,978 38,880 50,058 58,751 Total liabilities 5,075,355 5,206,736 5,229,928 5,252,687 5,321,785 5,366,371 5,435,837 5,631,890 5,939,344 6,230,041 6,325,432 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 16.—Combined resources and li< of all Federal Reserve Banks as at close of business on the last Friday of each month during the calendar year 1919—Continued. LIABILITIE S—Continued. [In thousands of dollars.] Jan. 31. Feb. 28. Mar. 28. Apr. 25. May 29. June 27. July 25. Aug. 29. Sept. 26. Oct. 31. Nov. 28. Dec. 26 MEMORANDA. Contingent liability as indorscr on- Discounted paper reciiscountcd with other Federal Reserve Banks ... . 46,073 53,816 74,409 90,964 112,865 122,607 84,900 53,655 70,195 28,948 23,500 40,615 Bankers'acceptances sold to other Federal Reserve Banks 16,918 25,841 4,098 7,159 858 5,062 40,474 69,899 DISTRIBUTION OF BILLS ON HAND BY MATURITIES. I Bills discounted: Within 15 days 1,511,355 1,529,010 1,648,426 1,727,796 1,484,822 1,532,918 1,519,814 1,532,058 1,770,521 1,582,690 1,484,790 Over 15 but within 30 days.. 57,883 168,881 74,823 35,738 123,334 103,924 53,870 120,183 103,418 135,642 244,890 Over 30 but within 60 days.. 202,040 115,670 80,574 141,123 122,083 99,788 152,545 154,918 143,943 293,789 292,715 Over 60 but within 90 days.. 86,221 51,427 123,022 60,509 56,531 109,773 79,889 68,568 99,017 183,448 152,125 Over 90 days 22,321 21,252 23,567 24,226 31,270 21,199 9,016 6,555 11,648 18,640 20,358 Total 1,886,240 1,950,412 9,392 1,818,040 1,867,602 1,815,134 1,882,282 2,128,547 2,214,209 2,194,878 Bills bought in open market: Within 15 days 82,025 78,660 60,702 52,301 75,449 74,463 95,517 108,414 83,577 89,003 123,727 Over 15 but within 30 days.. 76,479 71,998 51,327 39,711 64,136 81,152 79,732 85,982 90,740 85,807 100,060 Over 30 but within 60 days.. 93,348 81,882 52,688 69,632 113,389 146,190 137,296 112,931 159,536 203,037 209,278 Over 60 but within 90 days.. 25,067 15,567 21,105 22,006 51,584 73,751 50,593 35,164 60,502 117,566 152,147 Over 90 days 182 Total 281,293 276,919 248,107 185,822 183,650 304,558 375,556 363,138 342,491 I 394,355 495,595 585,212 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 17.—Principal resources and liabilities of all Federal Reserve Banks at close of business on each Friday, Jan. 3 to Dec. 26, 1919. [In thousands of dollars.] Bills discounted. Total cash United United Total G g ti o f o i l l c d d a t c a e e n s r d . - s f m G e u t n o e tl n l d e d t . - -a f g o w G e r n e o it c i l h g d ie n s. G R F a o g e e ld d s e e n e w r r t v s a i l . e th d G e f o m u l n d p d t r . i e o - n T r o es ta e l r v g e o s l . d s d i l i r n e l e e v g c r s e a l e n u r l r , d o v t i t e e e n e s t n s g c , , - . S m e G o c e b o u n l v r t i e e g d w r a n - a b - r y All other. m i b n o B a u o r i k l g p l e s e h n t t . G b S m o o t v n a e e t d n e r s t n s . - V U n S i o n t c a t i t e t o t e e s r s d . y c i e c n S a d e d t t n r e a e t e t s i b e f s i s t s o - - . f U s S e t n t i c a e i u t s t e e r . i s d tions. 1919 Jan. 3 338,717 398,997 5,829 1,263,383 84,268 2,091,194 2,152,154 1,534,670 295,194 290,269 29,824 125,063 154,887 10 334,552 430,730 5,828 1,238,245 84,715 2,094,070 2,161,898 1,484,847 273.229 277,896 28,821 175,809 204,630 17 334,696 387,572 5,828 1,289,105 85,368 2,102,569 2,170,163 1,347,088 254,263 273,607 28,571 271,173 299,744 24 343,692 407,698 5,828 1,255,192 88,907 2,101,317 2,168,387 1,497,500 264,533 284,539 28,571 147,398 175,969 31 338,916 422,686 5,828 1,253,330 91,346 2,112,106 2,179,646 1,357,571 243,557 281,293 28,252 266,532 294,784 Feb. 7 348,605 419,050 5,829 1,231,166 103,533 2,108,183 2,175,614 1,451,147 243,254 282,702 28,250 139,501 167,751 14 347,764 437,278 5,829 1,217,363 111,113 2,119,347 2,185,318 1,603,052 233,849 275,068 28,101 141,204 169,305 20 350,417 457,889 5,829 1,197,983 112,923 2,125,041 2,191,532 1,596,458 221,996 269,920 28,095 147,123 175,218 28 345,762 463,484 5,829 1,187,760 120,163 2,122,998 2,188, 723 1,667,965 211,855 276,919 27,094 155,688 182,782 Mar. 7 341,070 511,227 5,829 1,163,840 117,513 2,139,479 I 2,205,462 1,701,487 186,240 273,493 27,057 159,835 186,892 14 332,749 501,078 5,829 1,170,601 119,277 2,129,534 | 2,196,737 1,702,351 184,012 262,139 27,223 168,348 195,571 21 329,741 566,864 5,829 1,112,938 125,470 2,140,842 I 2,208,578 1,691,678 189,861 261,924 27,222 172,471 199,693 28 326,791 563,577 5,829 1,113,070 133,038 2,142,305 I 2,210,524 1,691,010 195.230 248,107 27,138 173,797 200,935 Apr. 4 333,384 612,711 1,100,173 104,682 2,150,950 2,218,628 1,674,916 193,066 240,790 27.134 •178,646 205,780 11 335,162 610,196 1,082,444 115,078 2,142,880 2,211,989 1,767,459 200,465 218,590 27.136 185,711 212,847 18 346,145 612,365 1,085,519 118,128 2,162,157 I 2,230,859 1,720,960 201,314 196,885 27.137 189,038 216,175 25 340,022 605,809 1,109,949 113,436 2,169,216 2,240,152 1, 760,672 189, 740 185,822 27.135 191,501 218,636 May 2 346,707 600,989 1,104,699 114,223 2,166,618 2,237,219 1,788,068 178,715 195,284 27,132 194,262 221,394 9 345,797 569,082 1,134,198 125,271 2,174,348 2,242,784 1,795,735 172,568 182,036 27,144 202,363 229,507 16 335,224 548,954 1,150,903 140,756 2,175,837 I2,245,857 1,863,476 175,464 184,727 27,131 204,082 231,232 23 346,997 572,001 1,139,825 119,916 2,178,739 2,247,933 1,762,487 176,379 193,187 27,149 199,748 226,914 29 346,618 586,742 1,131,725 122,658 2,187,743 i 2,255,106* 1,802,893 186,499 183,650 27,131 201,800 229,014 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 17.—Principal resources and liabilities of all Federal Reserve Banks at close of business on each Friday, Jan. 3 to Dec. 26, 1919—Continued. [In thousands of dollars.] Bills discounted. G g ti o f o i l l c d d a t c a e e n s r d . - s f m G e u t n e o tl n l d d e t . - a f g o w G e r n e o i c t i l h g d ie n s. G R F a o g e e ld d s e e n e w r r t v a s i . e l th d G e f m o u l n p d d t r i . o e- n T r o es ta e l r v g e o s l . d s T i d l r i n e o l e e v g c r s t e a a l e u n l r l r , d o v t c i e e t e a n e n s t s g s c , - h , . S m e G o c e o b u n v l r t i e e g d w r a n - a b - r y All other. m i b n o B a u o r il k g p l e s h en t t . G U b S m o o n t v n a e i e t t d n e e r s t s n d . - I U S n ta i t t e e s d i c e U c S n a d e n d t t n r a e i e t e s t i t b e f s e o i s t s d - - f . U s S T e t n t i c o a e i u t t t s a e r e . i l s d tions. 1919. June 6 354,969 581,055 1,139,508 126,272 2,201,804 2,270,343 1,620,994 190,130 198,307 27.129 333 227,553 255,015 13 355,811 582,675 1,117,970 137,418 2,193,874 2,261,988 1,695,576 182,598 234,537 27.130 333 204,405 231,868 20 332,676 581,238 1,127,216 124,595 2,165,725 2,234,459 1,621,928 215,512 274,736 27.131 333 201,883 229,347 27 314,135 597,046 1,113,824 122,779 2,147,784 2,216,256 1,573,483 244,557 304,558 27,130 335 204,104 231,569 July 3 282,943 564,290 1,155,278 126,435 2,128,946 2,195,353 1,632,639 262,389 330,679 27.130 377 200,068 227,575 11 279,545 554,812 1,163,068 114,399 2,111, 824 2,180,211 1,684,946 251,367 360,035 27.131 374 206,054 233,559 18 273,810 591,190 1,134,173 112,927 2,112,100 2,177,481 1,579,728 248,347 372,353 27,084 363 209,941 237,388 25 270,601 591,532 1,108,051 124,967 2,095,151 2,161,023 1,616,210 251,392 375,556 27,086 286 212,028 239,400 Aug. 1 263,275 641,896 1,071,307 111,997 2,088,475 2,156,327 1,612,639 235,300 .374,791 27,094 280 217,982 | 245,356 8 262,745 618,636 1,084,047 119,328 2,084,756 2,152,118 1,608,583 225,535 381,241 j 27.095 280 229,724 | 257,099 15 250,651 591,206 1,118,894 121,836 2,082,587 2,151,723 1,522,992 220,347 374,375 27,098 274 295,727 323,099 22 260,507 579,480 1,127,028 107,270 2,074,285 2,142,701 1,563,048 211,262 362,911 27,098 209 237,847 265,154 29 244,231 563,640 ,142,589 116,328 2,066,788 2,135,976 1,609,296 205,838 363,138 27,096 198 243,411 270,705 Sept. 5 243,238 542,310 ., 172,168 109,336 2,067,052 2,136,870 1,635,233 212,185 354,667 | 27,096 197 250,223 277,516 12 231,609 537,723 ., 190,769 108,766 2,068,867 2,138,499 1,524,521 230,317 362,005 27.096 192 341,655 368,943 19 230,047 512,080 45,479 ,208,961 95,399 2,091,966 2,162,057 1,383,896 261,985 353,817 27,095 192 322,986 350,273 26 239,168 502,506 79,370 ,196,325 100,485 2,117,854 2,187,505 1,572,503 309,779 342,491 | 27,097 137 251,081 278,315 Oct. 3 242,405 516,335 108,892 ,166,398 101,252 2,135,282 2,205,511 1,654,166 361,771 326,667 27,095 136 263,148 290,379 10 245,485 496,904 108,123 16,697 94,119 2,131,328 2,202,100 1,672,797 401,058 326,852 27,096 133 267,551 294,780 17 251,954 461,193 106,917 1,201,302 107,077 2,128,443 2,199,185 1,698,885 422,842 342,938 27,097 87 269,414 296,598 24 248,375 465,535 132,983 1,197,933 101,779 | 2,146,605 2,214,561 1,666,055 416,084 368,846 27,095 86 273,585 300,766 31 254,027 444,126 129,923 1,205,576 104,348 ! 2,138,000 2,205,592 1,681-082 447,465 394,355 26,845 84 274,325 301,254 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nov. 7. 244,836 429,429 127,165 1,207,275 110,860 2,119,565 2,187,369 1,771,028 418,461 433,586 26,846 84 273,199 300,129 14. 248,601 440,078 146,176 1,194,319 104,086 2,133,260 2,200,106 1,700,618 439,000 455,653 26,846 79 278,538 305,463 21.. 248,012 444,547 142,195 1,166,086 118,475 2,119,315 2,186,972 1,673,890 450,747 480,043 26,847 57 285,341 312,245 28.. 235,348 440,286 135,696 1,148,724 133,587 2,093,641 2,159,666 1,736,033 478,176 495,595 26,848 57 288,032 314,937 Bee. 5.. 234,622 428,812 132,935 1,172,191 118,704 2,087,264 2,154,095 1,603,313 504,795 514,219 26,848 54 283,853 310,755 12.. 243,148 404,066 140,910 1,188,343 119,821 2,096,288 2,160,405 1,588,417 550,999 541,551 26,847 54 273,219 300,120 W 19.. 241,325 399,935 137,717 1,201,654 115,182 2,095,813 2,154,911 1,414,950 580,162 566,266 26,846 54 303,558 330,458 M 26.. 229,445 352,785 134,320 1,240,032 121,850 2,078,432 2,135,536 1,510,364 684,514 585,212 26,834 64 273,507 300,405 w ? H Q O s O o I > Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 17.—Principal resources and liabilities of all Federal Reserve Banks at close of business on each Friday, Jan. 3 to Dec. 26, 1919—Continued. [In thousands of dollars.] 00 A e a l a s l r s n o e i t t n h s g . er e a T a s r o s n e t i a t n s l g . U d f i r d t e n o e e d c o m m p o u t o l s h c l g s t e e i a i r r c o t o n t s n s e d . s s d so l T i u a o r b c t i e a li s l t r i a e e n s - d . p C a a id p it i a n l . Surplus. d G e m o p v o e e n s r i t n ts - . m a r D e c e c m s u o e e b u r v t e n o e r t. s- i a D t v y e a f i i e t l e r a r m b ed i s l . - i d n G c f e O c o m r o p e l r t v u o e e d h e i d s n i g e r i t i t r t n n s n s . - g , T d o e t p al o s g i r t o s s . s n R c F a o i t e e r c i t d s c o e t e u u e s n r r a l . v a i a l n e - l l t n R i c i F a o o i b e e r b n t a s c d e i — e n u l e s r i k l r t v a n i a y n e - e l . t 1919. Jan. 3... 2,275,033 828,849 5,285,868 80,792 22,738 89,821 1,602,901 569,055 118,581 2,380,358 2,647,605 120,267 10.. 2,240,615 712,381 5,141,431 80,812 22, 738 37,291 1,640,729 495,354 114,874 2,288,248 2,590,681 123,466 17... 2,174,706 816,914 5,187,193 80,510 22,738 48,996 1,694,960 537,172 128,236 2,409,364 2,513,089 125,011 24... 2,222,545 716,588 5,132,658 80,820 22, 738 146,381 1,624,415 511,899 113,429 2,396,124 2,466,556 126,810 31... 2,177,209 691,454 5,075,355 80,913 22,738 64,928 1,693,132 472,042 120,809 2,350,911 2,450,729 129,445 Feb. 7.. 2,144,858 624, 861 4,970,615 81,061 22, 738 96,809 1,590,441 439,221 112,551 2,239,022 2,454,165 131,315 14.. 2,281,278 701,465 5,194,528 81,211 22,738 192,970 1,623,158 517,726 112,273 2,446,127 2,468,388 132,291 20.. 2,263,596 633,806 5,113,192 81,406 22,73 8 205,675 1,563,912 480,257 114,758 2,364, 602 2,466,248 133,465 28.. 2,339,525 653,465 5,206,736 81,452 22,738 210,547 1,620,972 494,653 124,022 2,450,194 2,472,307 134,042 Mar. 7.. 2,348,116 599,197 5,178,134 81,490 49,466 195,559 1,626,076 456,289 123,363 2,401,287 2,488,537 136,591 14.. 2,344,077 683,017 5,247,803 81,562 49,466 150, 783 1,675,045 509,112 117,522 2,452,462 2,503,095 139,479 21. 2,343,160 797,303 5,373,425 81,612 49,466 285,785 1,604, 719 555,383 120,062 2,565,949 2,510,687 142,442 28.. 2,335,285 660,066 5,229,928 81,641 49,466 168,147 1,631,167 484,906 117,271 2,401,491 2,521, 776 145,540 Apr. 4.. 2,314,555 644,959 5,202,385 81,658 49,466 85,008 1, 655,298 487,593 120,426 2,348,325 2,547,670 149,449 11.. 2,399,383 636,384 5,272,634 81,750 49,466 169,972 1,628,693 487,153 128,481 2,414, 299 2,548,588 151,560 18.. 2,335,334 655,446 5,248,646 81,774 49,466 106,561 1,655,860 496,788 131,307 2,390,516 2,543,704 155,074 25.. 2,354,870 630,614 j 5,252,687 82,015 49,466 91,726 1,664,320 491,605 135,057 2,382,708 2,549,552 158,848 May 2.. 2,383,461 653,926 | 5,302,226 82,198 49,466 143,273 1, 644,434 512,703 128,466 2,428,876 2,549,040 161,450 9.. 2,379,846 628,034 ' 5,276, 723 82,228 49,466 89,761 1,688,906 483,501 129,175 2,391,343 2,556,749 164,415 16.. 2,454,889 709,355 5,440,243 82,397 49, 466 185,841 1,713,341 549, 702 125, 786 2,574, 670 2,532,039 168,045 23.. 2,358,967 679,798 5,316,234 82,553 49,466 99,999 1,697,524 537,642 142,138 2,477,303 2,504,253 167,208 29.. 2,402,056 634,639 | 5,321, 785 82,589 49,466 141,479 1,656,118 517,638 150,324 2,465,559 2,519,292 168,427 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

June 6. 2,264,446 650, 757 5,215,442 82,652 49,466 26,058 1, 705,104 497,349 134,364 2,362,875 2,513,037 169,246 13. 2,344,579 835,362 5,472,146 82,674 49,466 245,245 1,633,583 623, 739 127,565 2,630,132 2,499,265 170,937 20. 2,341,523 848,157 5,455,450 82,756 49,466 161,495 1,648, 630 682,097 127,264 2,619,486 2,488,253 173,775 27. 2,354,107 686,063 5, 288,008 82, 764 49,466 73,614 1, 713,030 534,420 115,693 2,436,757 2,499,180 177,185 July 3.. 2,453,282 742,527 5, 423,108 82,811 81,087 136,328 1,687,608 561,896 128,698 2,514,530 2,552,348 181,570 11.. 2,529,907 740,994 5,483,197 82,851 81,087 151,190 1,726,329 591,230 114, 678 2,583,427 2,538,127 184,806 18.. 2,437,816 857,194 5,504,405 82,958 81,087 137,090 1, 712, 796 651,735 125,069 2,626,690 2,512,048 186,911 25.. 2,482,558 690,495 5,366,371 83,317 81,087 116,038 1,718,396 535,178 117,444 2,487,056 2,504,497 193,849 Aug. 1.. 2,468,086 739,617 5,395,952 83,532 81,087 68,357 1,742,478 581,232 113,731 2,505,798 2,506,820 200,945 2,472,458 793,301 5,450,301 83,807 81,087 108,686 1,756,807 555,485 107,882 2,528,860 2,532,057 205,318 15 2,440,813 928,030 5,553,188 84,400 81,087 58,590 1,778,365 670,539 109,210 2,616,704 2,540,904 209,709 22 2,402,375 865,927 5,444,096 84,730 81,087 103,330 1,679,834 605,812 98,098 2,487,074 2,553,534 215,795 29 2,448,977 816,513 5,435,837 84,926 81,087 54,494 1,729,950 563,387 98,479 2,446,310 2,580,629 219,815 Sept. 5 2,479,601 934,964 5,584,921 84,996 81,087 59,110 1, 757,641 643,194 99,136 2,559,081 2,611,697 223, 56^ 12 1 | 2,485,786 031,298 5,691,076 85,140 81,087 33,584 1,802,791 679,043 134,096 2,649,514 2,621,228 228,169 19 | | 2,349,971 139,260 5,686,609 85,208 81,087 78,134 1,651,426 802,715 106,899 2,639,174 2,621,258 232,594 26 | ! 2,503,088 907,650 5,631,890 85,296 81,087 61,276 1,731,413 653,381 95,654 2,541,724 2,655,354 239,451 Oct. 3 1 ; 2,632,983 908,310 5,782,131 85,350 81,087 78,832 1,765,863 691,968 97,913 2,634,576 2,708,186 241,937 10 ! 2,695,487 900,013 5,832,049 85,391 81,087 80,067 1, 777,859 688, 734 97,203 2,643,863 2,741,684 247,176 17.. 2, 761,263 162,167 6,161,812 85,540 81,087 133,639 1,841,101 882,156 101,430 2,958,326 2,752,569 249,675 24.. 2,751,751 937,250 5,938,630 85,863 81,087 83,984 1,813,563 733,227 98,878 2,729,652 2,753,457 251,590 31.. 2, 824,156 875,037 5,939,344 86,013 81,087 100,465 1,833,481 693, 766 97,843 2,725,555 2,752,876 254,933 Nov. 7.. 2,923,204 937,178 6,081,606 86,267 81,087 63,687 1,906,867 739,384 97,750 2,807,688 2,806,759 257,572 14.. 2,900,734 023,574 6,159, 760 86,769 81,087 77,912 1,863,379 842,047 98,494 2,881,832 2,808,456 257,281 21.. 2,916,925 000,288 6,137,541 86,885 81,087 102,805 1,837,540 811,204 95,539 2,847,088 2,817,173 257,680 28.. 3,024,741 013,426 6,230,041 87.001 81,087 98,157 1,844,434 861,436 98, 798 2,902,825 2,852,277 256,793 Dec. 5.. 2,933,082 920,299 6,041,396 86,973 81,087 39,798 1,830,037 717,852 94,133 2,681,820 2,881,359 257,480 12.. 2,981,087 983,527 6,159,241 87.002 81,087 89,503 1,817,406 759,554 103,488 2,769,951 2,907,435 258,444 259,975 19.. 2,891,836 140,224 6,224,604 87,049 81,087 64,459 1,733,013 848,607 105,069 2,751,148 2,988,894 261,039 26.. 3,080,495 ,075,100 6,325,432 87,339 81,087 72,357 1,786,874 822,680 97,659 2,779,570 3,057,646 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

120 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. MOVEMENT OF EARN/NO ASSETS 11 OF ALL FEDERAL RESERVE BANKS DURING CALENDAR YEAR 1919. UNITED STATES SECURITIES, 750 750 SQO 500 250 inin mi 2S0 i il 0 0 ACCEPTANCES B0U6HT: W too 60 80 60 60 40 20 20 O O PERCENTA6E OF WAR PAPER TO TOTAL DISCOUNTS, IY+D. 2500\ 1 1 1 1 1 1 1 1 1 ' \2500 F 2000 2000 1500 1500 IOOO IOOO 500 500 TOTAL BILLS• DISCOUNTED, "DA;ND WAR PAPER,' 3000 3000 2500 \ 2500 Mi in 2000 ^^ • 2000 Hi mi iH Ml pn 1500Ilii i ii 1500 ni in iitt 1000 IOOO » IP ft pi IS lH HI Pi sPl in pj 500 iip iiti 0 TOTAL EARNING ASSETS. JAN. FEB. MOt. APRL MAY JUHt JULY Am SEPT. OCT. IfOtt PEC Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 18.—Required reserves against net deposit and Federal Reserve note liabilities and amounts of gold held in excess of required reserves. [In thousands of dollars.] Net deposits. Federa c l i R rc e u s l e a r t v io e n n . otes in ! i to R t a a t l i o c a o s f h W Amount. R p r e e e o r q s f e u c 3 r i e v r 5 n e e t d . Amount, I j p ^ e f r J c J e 8 n t. I d l e i T a p o b o t i s a l i i l t t s i n e a e s n t . d a r m r e e T q o s o u e u r t i n r a v t e l e d o . f T r o e h t s a e e l l r d v c . a e s s h r e r G e e x g q s ( c o o f e u e l r l r d s e i d v r s e ) e i e . o n d s f l r d i R F a e t e e o e n b s a p e d s i o n o l n e r e t i d v s r e e t r i v i e a t t e e s s l s T s a combined. o 1919. Jan. 3.. 1,551,509 543,028 2,647,605 1,059,042 4,199,114 1,602,070 2,152,154 550,084 51.3 O 10. 1,575,867 551,553 2,590,681 1,036,272 4,166,548 1,587,825 2,161,898 574,073 51.9 17 1,592,450 557,358 2,513,089 1,005,236 4,105,539 1,562,594 2,170,163 607,569 52.9 21 1,679,536 587,838 2,466,556 986,622 4,146,092 1,574,460 2,168,387 593,927 52.3 31 1,659,457 580,810 2,450,729 980,292 4,110,186 1,561,102 2,179,646 618,544 53.0 Feb. 7. 1,614,161 564,956 2,454,165 981,666 4,068,326 1,546,622 2,175,614 628,992 53.5 14... . 1,744,662 610,632 2,468,388 987,355 4,213,050 1,597,987 2,185,318 587,331 51.9 20 1,730,796 605,779 2,466,248 986,499 4,197,044 1,592,278 2,191,532 599,254 52.2 28 1,796,729 628,855 2,472,307 988,923 4,269,036 1,617,778 2,188,723 570,945 51.3 Mar. 7. 1,802,090 630,732 2,488,537 995,415 4,290,627 1,626,147 2,205,462 579,315 51.4 14. 1,769,445 619,306 2,503,095 1,001,238 4,272,540 1,620,544 2,196,737 576,193 51.4 21 1,768,646 619,026 2,510,687 1,004,275 4,279,333 1,623,301 2,208,578 585,277 51.6 i 28 1,741,425 609,499 2,521,776 1,008,710 4,263,201 1,618,209 2,210,524 592,315 51.9 Apr. 4 1,703,366 596,178 2,547,670 1,019,068 4,251,036 1,615,246 2,218,628 603,382 52.2 11. 1,777,915 622,270 2,548,588 1,019,435 4,326,503 1,641,705 2,211,989 570,284 51.1 18 1,735,070 607,275 2,543,704 1,017,482 4,278,774 1,624,757 2,230,859 606,102 52.1 25 1,752,094 613,268 2,549,552 1,019,821 4,301,646 1,633,089 2,240,152 607,063 52.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 18.—Required reserves against net deposit and Federal Reserve note liabilities and amounts of gold held in excess of required reserves—Continued. [In thousands of dollars.] to Net deposits. Federal c i R rc e u s l e a r t v i e o n n . otes in to R t a a t l io c a o s f h >• reserves fe Amount. R r e e o q s f e u 3 r i v r 5 e e d Amount. R r e e o q s f e u r 4 i v r 0 e e d R de l e T i p F s a o e o b e r t s d i a v l i e i t l e t s r i n a e n a e l s o n t . t d e a r m r e e T q o se u u o r i n t v r a t e l e d o . f T r o e h t s a e e l l r d v c . e a s sh r e r G e x e g q ( o s c o f e u e l r l d r s e i d v s r e ) i e e . n o d s f F R d t e e e o a p d s n n o e e d r e s r v i a t t e l s J ^ _ p ^ 3 per cent. per cent. note £rf liabilities g combined. hi O 1919. H May 2 1,774,950 621,233 2,549,040 1,019,616 4,323,990 1,640,849 2,237,219 596,370 51.7 o 9 1,765,309 617,858 2,556,749 1,022, 700 4,322,058 1,640,558 2,242,784 602,226 51.9 ^ 16 1,865,375 652,860 2,532,039 1,012,816 4,397,354 1,665,676 2,245,857 580,181 51.1 Hj 23 1,797,505 629,127 2,504,253 1,001,701 4,301,758 1,630,828 2,247,933 617,105 52.3 W 29 1,830,920 640,822 2,519,292 1,007,717 4,350,212 1,648,539 2,255,106 606,567 51.8 June 6 1,712,118 599,241 2,513,037 1,005,215 4,225,155 1,604,456 2,270,343 665,887 53.7 ft 13 1,794,770 628,170 2,499,265 999, 706 4,294,035 1,627,876 2,261,988 634,112 52.7 g 20 1,771,329 619,965 2,488,253 995,301 4,259,582 1,615,266 2,234,459 619,193 52.5 W 27 1,750,694 612, 743 2,499,180 999,672 4,249,874 1,612,415 2,216,256 603,841 52.1 p July 3 1,772,003 620,201 2,552,348 1,020,939 4,324,351 1,641,140 2,195,353 554,213 50.8 w 11 1,842,433 644,852 2,538,127 1,015,251 4,380,560 1,660,103 2,180,211 520,108 49.8 H 18 1,769,496 619,324 2,512,048 1,004,819 4,281,544 1,624,143 2,177,481 553,338 50.9 g 25 1,796,561 628,796 2,504,497 1,001,799 4,301,058 1,630,595 2,161,023 530,428 50.2 «*j Aug. 1 1,766,181 618,163 2,506,820 1,002,728 4,273,001 1,620,891 2,156,327 535,436 50.5 H 8 1,820,817 637,286 2,532,057 1,012,823 4,352,874 1,650,109 2,152,118 502,009 49.4 W 15 1,688,674 591,036 2,540,904 1,016,362 4,229,578 1,607,398 2,151,723 544,325 50.9 9 22 1,621,147 567,401 2,553,534 1,021,414 4,174,681 1,588,815 2,142,701 553,886 51.3 § 29 1,629,797 570,429 2,580,629 1,032,252 4,210,426 1,602,681 2,135,976 533,295 50.7 P Sept. 5 1,624,117 568,441 2,611,697 1,044,679 4,235,814 1,613,120 2,136,870 523,750 50.4 12 1,618,216 566,376 2,621,228 1,048,491 4,239,444 1,614,867 2,138,499 523,632 50.4 19 1,499,914 524,970 2,621,258 1,048,503 4,121,172 1,573,473 2,162,057 588,584 52.5 26 1,634,074 571,926 2,655,354 1,062,142 4,289,428 1,634,068 2,187,505 553,437 51.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Oct. 3, ,726,266 604,193 2,708,186 1,083,274 4,434,452 1,687,467 2,205,511 518,044 49.7 10 ,743,850 610,348 2,741,684 1,096,674 4,485,534 1,707,022 2,202,100 495,078 49.1 17 ,796,159 628,656 2,752,569 1,101,028 4,548,728 1,729,684 2,199,185 469,501 48.3 24 ,792,402 627,341 2,753,457 1,101,383 4,545,859 1,728,724 2,214,561 485,837 48.7 31 ,850,518 647,681 2,752,876 1,101,150 4,603,394 1,748,831 2,205,592 456,761 47.9 Nov. 7, ,870,510 654,679 2,806,759 1,122,704 4,677,269 1,777,383 2,187,369 409,986 14 ,858,258 650,390 2,808,456 1,123,382 4,666,714 1,773,772 2,200,106 426,334 W 21 ,846,800 646,380 • 2,817,173 1,126,869 4,663,973 1,773,249 2,186,972 413,723 46.9 28 ,889,399 661,289 2,852,277 1,140,911 4,741,676 1,802,200 2,159,666 357,466 45.5 Deo. 5 ,761,521 616,532 2,881,359 1,152,544 4,642,880 1,769,076 2,154,095 385,019 46.4 12 ,786,424 625,248 2,907,435 1,162,974 4,693,859 1,788,222 2,160,405 372,183 46.0 19 ,610,924 563,823 2,988,894 1,195,558 4,599,818 1,759,381 2,154,911 395,530 48.8 O ,704,470 596,565 3,057,646 1,223,058 4,762,116 1,819,623 2,135,536 315,913 44.8 g s 1 55 W in to CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

124 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. NET DEPOSIT LIABILITIES, i F.RMOTE CIRCULATION, CASH RESERVES, AMD RESERVE RATIO, Of ALL FEDERAL RESERVE BANKS. e DURING CALENDAR YEAR 1919. 70 60 £7 SO ***** SO 40 40 - 30 do 20 20 10 JRESERVEHAT 10, (PERCENTAGE OF C+L) 6000 6000 scoo SOOO 4000-.. 4000 3000 2000 am 2000 IOOO IOOO P&QSITANDF.RMOTZLIABILITIES,*L\ AliPTOTALRESZ 3000 £000 2000 IOOO 4000 3000 2000 IOOO F.R. NOTE CIRCULATION. JAH. 1 FEB\MC'ri\AFRL \MAY\JUHE\JULY\AU6. \SEPT\ OCT\!iOV\DEC\ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT 0—CONDITION OF FEDERAL RESERVE BANKS. 125 I REQUIRED AND EXCESS RESERVES. /, 6oldL<3ie$en>e$ requird &fr -4 MAY\jU!tE\JU^^ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 19.—Average daily holdings of discounted bills, by months, during the calendar year 1919 and totals for 1918 and 1917. to Federal Reserve Bank. January. February. March. April. May. June. July. August. Boston $128,211,454 $142,420,149 $144,540,609 $157,110,903 $152,233,040 $147,152,859 $144,812,282 $125,573,386 New York 684,720,582 734,456,855 7*45,545,361 695,762,071 753,166,858 652,929,328 739,789,808 685,519,941 Philadelphia . . 177,059,450 185,697,842 187,159,835 188,689,151 192,374,942 192,524,439 188,589,796 193,261,632 Cleveland . ... 110,101,482 98,136,063 109,910,115 130,431,335 132,273,443 126,757,331 112,873,258 118,212,830 Richmond 89,084,194 91,829,939 94,647,814 96,059,641 93,118,887 92,134,519 89,912,879 89,217,576 Atlanta 77,734,791 74,524,548 77,776,512 81,157,557 84,215,540 84,557,609 83,313,601 90,154,929 Chicago 165,739,209 158,132,792 182,414,143 214,742,954 220,888,776 222,734,967 216,904,077 205,291,991 St. Louis 64,624,598 51,105,261 69,442,450 79,496,332 68,153,931 65,693,621 57,095,404 68,098,301 Minneapolis 32,371,000 18,848,000 23,395,000 43,713,500 48,169,000 46,051,000 37,856,400 33,561,000 Kansas City 66,559,290 68,737,839 79,744,405 86,558,049 87,150,314 86,591,646 84,358,300 71,733,184 Dallas 49,464,836 51,646,675 52,494,357 51,047,393 51,370,232 50,720,031 55,496,471 54,836,900 San Francisco 88,984,131 87,690,495 94,461,038 94,691,840 90,811,118 74,264,601 56,918,061 66,425,634 W Total—1919 '. 1,734,655,017 1,763,226,458 1,861,531,639 1,919,460,726 1,973,926,081 1,842,111,951 1,867,920,337 1,801,887,304 1918 611,235,224 531,541,333 567,474,932 769,259,187 902,101,974 938,441,967 1,165,649,422 1,337,701,494 1917 20,876,802 17,900,040 18,190,769 24,902,567 42,710,392 151,233,725 147,797,115 134,987,615 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Bank. September. October. November. December. Year 1919. Year 1918. Year 1917. Boston . $121,518,581 $127,392,286 $147,255,981 $170,522,598 $142,385,669 $76,415,140 $12,812,843 New York 651,052,987 788,495,509 829,776,757 759,737,480 726,894,981 439,075,629 78,622,402 M Philadelphia 196,612,074 204,075,941 205,069,357 206,825,892 193,194,965 75,556,041 9,923,917 W Cleveland 123,713,210 142,712,525 150,177,449 162,522,519 126,649,267 73,080,025 9,531,459 S Richmond 90,225,882 99,203,720 98,848,446 106,920,025 94,545,750 54,299,950 10,720,028 Atlanta . 95,306,288 105,477,500 106,329,831 95,766,349 87,909,543 41,159,081 5,812,100 ? Chicago 186,297,025 228,308,375 242,933,736 293,668,441 209,114,369 150,018,487 24,407,209 St. Louis 74,701,186 82,545,493 70,056,523 72,393,861 68,688,026 51,755,325 9,314,101 a Minneapolis 39,309,700 56,007,000 55,021,800 65,132,000 41,758,732 33,463,611 7,370,500 o Kansas City - . 72,820,622 99,300,520 100,757,092 90,817,568 83,002,885 55,732,674 10,635,571 Dallas 55,831,494 60,404,714 49,661,464 48,653,660 52,666,018 32,083,680 4,666,809 San Francisco 69,944,873 79,492,060 89,742,205 84,060,930 81,387,347 57,413,505 6,468,358 o Total—1919 1,777,333,922 2,073,415,643 2,145,630,641 2,157,021,323 1,908,197,552 1918 1,603,152,988 1,709,766,375 1,768,745,862 1,749,155,925 1,140,053 148 3 1917 182,439,407 313,771,389 568,352,241 664,153,799 190,285,297 I 1 w to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 20.—Discounted paper held by each.Federal Reserve Bank on Dec. 26, 1919, distributed by maturities; also totals for the sijstem on the last Friday in December, 1918 and 1917. to GO Maturities. Federal Reserve Bank. Total. Percent. Within 15 From 16 to 30 From 31 to 60 From 61 to 90 days. days. days. days. Over 90 days. d > Boston $74,539,560 $41,825,037 $49,856,282 $28,599,679 $15,715 $194,836,273 8.9 F New York 630,489,445 61,313,832 75,354,377 21,032 843 3,090 788,193,587 35.9 Philadelphia 125,246,255 47,404,648 23,479,638 12,005,760 4,122 208,140,423 9.5 o Cleveland 127,022,500 11,812,705 20,063,550 8,564,389 114,269 167,577,413 7.6 Richmond 80,953,043 10,128,477 13,190,324 4,382,299 108,660,749 4.9 Atlanta 66,136,970 8,113,410 11,470,423 4,452,085 49,223 90,222,111 4.1 o Chicago 157,353,593 28,709,423 44,720,520 40,576,680 3,909,117 275,269,333 12.5 St. Louis 52,365,495 8,221,535 13,662,703 3,898,190 87,692 78,235,615 3.6 w Minneapolis 29,229,450 9,812,912 15,773,905 12,045,412 3,195,333 70,057,012 3.2 Kansas City 46,058,821 8,641,698 13,637,426 9,707,142 9,387,778 87,432,865 4.0 Dallas 44,185,422 3,135,747 2,676,861 2,466,872 1,596,116 54,061,018 2.5 San Francisco... 51,209,378 5,769,936 8,830,343 4,394,583 1,990,102 72,194,342 3.3 Total—1919. 1,484,789,932 244,889,360 292,716,352 152,125,934 20,359,163 2,194,880,741 100.0 1918. 1,149,955,240 266,107,544 166,876,852 93,062,065 26,939,547 1,702,941,248 1917. 355,373,000 57,367,000 175,006,000 83,974,000 8,986,000 608,706,000 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 21.—Acceptances purchased and held by each Federal Reserve Bank on Dec. 26, 1919, distributed by maturities; also totals for the system on the last Friday in 1918 and 1917. Maturities. Federal Reserve Bank. Total. Per cent. M Within 15 From 16 to 30 From 31 to 60 From 61 days days. days. days. to 3 months. S Boston $4,609,791 $3,198,782 $4,533,982 $4,163,620 $16,506,175 2.8 Q New York 33,910,815 25,942,357 71,043,643 60,415,691 191,312,506 32.7 j Philadelphia. 44,784 101,256 1,848,140 2,703,575 4,697,755 •8 o Cleveland 20,414,816 8,094,626 15,687,429 12,725,609 56,922,480 9.7 fe Richmond... 1,805,900 4,954,082 6,048,185 3,223,238 16,031,405 2.8 g Atlanta 1,858,700 3,478,666 7,788,777 3,104,765 16,230,908 2.8 H Chicago 12,284,178 21,469,450 36,637,327 37,961,541 108,352,496 18.5 g St. Louis 16,043,506 10,247,117 6,808,264 3,836,3.85 36,935,272 6.3 ^ Minneapolis.. 4,172,587 2,695,035 7,202,291 331,433 14,401,346 2.5 g Kansas City.. 4,782,242 5,796,088 6,844,792 2,558,184 19,981,306 3.4 Dallas 1,347,877 184,640 6,166,009 35,000 7,733,526 1.3 § San Francisco. 22,447,848 13,899,115 38,670,706 21,089,265 96,106,934 16.4 jp Total—1919.. 123,723,044 100,061,214 209,279,545 152,148,306 585,212,109 100.0 j> 1918. 104,435,581 73,913,956 104,879,834 20,443,854 303,673,225 1917.. 40,321,000 61,177,000 105,132,000 68,736,000 275,366,000 u. > W CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No, 22.—Acceptances purchased and held by each Federal Reserve Bank on Dec. 31, 1919, distributed by classes of accepting institutions. [In thousands of dollars.] O GO Federal Reserve Bank. M ba e n m k b s e . r c N o b m o er n p m t a r n e u i r s e n t s - . N b b e o r a n n m S k t e a s m . te - P b r a i n v k a s te . b a F g r b o a e a a n r n n e n c c d i k h i g e e n s s . b a a a T c n n c o c k e t e e p a s l r t . - s' Domesti T c. r ade F a o c re c i e g p n ta . nces. Total Total. Boston 12,518 170 487 3,467 16,978 368 1,303 1,671 18,649 New York 123,413 2,302 33,519 19,232 19,562 198,028 1,934 2,941 4,875 202,903 Philadelphia 4,494 378 250 35 5,157 20 20 5,177 Cleveland 30,051 76 6,743 7,025 4,383 48,278 157 172 329 48,607 Richmond 15,717 100 196 342 50 16,405 16,405 o Atlanta 14,481 875 466 817 16,639 16,639 Chicago 84,788 868 1,139 5,063 792 92,650 92,650 St. Louis 25,739 275 3,256 2,868 666 32,804 32,804 Minneapolis 12,516 19 14 50 12,599 12,599 Kansas City 12,791 258 2,040 1,638 1,964 18,691 18,691 Dallas 5,538 883 6,42,1 6,421 San Francisco 63,293 197 11,970 13,938 12,321 101,719 81 758 839 102,558 Total: Dec. 31,1919.. 405,339 5,121 60,213 55,537 40,159 566,369 2,540 5,194 7,734 574,103 Nov. 30,1919.. 347,852 6,446 48,798 55,876 36,358 495,330 1,646 4,934 6,580 501,910 Oct. 31,1919... 271,701 8,021 36,707 42,677 28,511 387,617 1,740 4,998 6,738 394,355 Sept. 30,1919.. 208, 784 8,255 24,821 33,420 21,873 297.153 591 2,385 2,976 300,129 Aug. 31,1919.. 264,827 3,111 32,665 43,815 20,955 365,373 561 1,229 1,790 367,163 July 31,1919... 269,568 8,935 31,928 42,593 18,967 371,991 576 673 1,249 373,240 June 30,1919.. 233,519 9,225 29,361 29, 648 12,654 314,407 382 1,204 1,586 315,993 May 31,1919... 136,741 2,853 18,729 14,628 10, 612 183,563 136 1,857 1,993 185,556 W Apr. 30, 1919.. 140,034 2,975 12,321 14,196 8,230 177,756 58 2,505 2,563 180,319 o Mar. 31,1919.. 185,207 2,172 15,561 15,263 12,885 231,088 319 4,207 4,526 235,614 Feb. 28,1919.. 219,323 2,418 15,110 22,062 13,586 272, 499 730 3,691 4,421 276,920 Jan. 31,1919... 224,237 2,178 11,986 22,163 15,119 275,683 1,871 3,739 5,610 281,293 Dec. 31,1918.. 238,257 2,745 10,442 20,385 13,444 285,273 2,536 4,388 6,924 292,197 Dec. 31,1917.. 227, 717 8,163 3,179 20,137 7,657 266,853 6,383 273,236 Dec. 30,1916.. 66,803 34,625 1,502 18,224 121.154 4,585 125,739 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 23.— United States securities held by each Federal Reserve Bank on Dec. 31, 1919, distributed by classes and maturities. United States certificates of indebtedness. Feder B a a l n R k e . serve 2 co p n 1 e 9 s r 3 o 0 l c . s e n o t f 1 2 P 9 a p 3 n e 6 o r a - f 1 m c 9 e a 3 n s 8 t . 4 l p o 1 e a 9 r n 2 5 c o . e f nt 3 l p o 1 e a 9 r n 6 1 c o . e f nt 3 b 1 v p o 9 e c e n 4 r o r d s 6 n i - s c o - 4 e o n 7 n f . t L l S o i 1 c h b a 9 e n 4 e p n 7 r e t o . t r y f 1 4 L 9 l p 4 o i e 2 b a r - n e 1 r c 9 o t e 4 y f n 7 t . L 4 l i c 1 o b e a e p n n r e t . t r y U b S T o n t o a n i t t t d a e e s l s d . V n i o c t t e o s r . y c 2 o t i o f r p c F s e u e e r l c a d c u t e i e r o r n e a n t l ot A h l e l r. Total. se U c S T u n t o a r i t i t t a t e e i l s d es. W w M Reserve H bank notes. a Boston $750 $529 000 $6,850 $2,700 $539,210 $100 $21,436,000 $369,000 $21,805,000 $22,344,400 New York 1,255,400 $400 1,000 1,256,800 50,000 59,276,000 8,445,500 67,721,500 69,028,300 Philadelphia $100 549,200 11,850 797,150 26,600 1,384,900 30,280,000 407,000 30,687,000 32,071,900 Cleveland 414,800 16,200 402,400 833,400 10,250 23,299,000 284,000 23,583,000 24,426,650 H o Richmond • 915,100 237,000 42,850 37,850 1,500 1,234,300 300 12,260,000 12,260,000 13,494,600 Atlanta 240,600 21,000 10,300 16,650 87,050 375,600 3,600 15,664,000 1,000 15,655,000 16,044,200 Chicago 1,862,500 367,300 $1,768,000 $400 427,400 500 51,000 4 477 100 39,612,000 176,000 39,788,000 44,265,100 St. Louis 100 1,153,300 1,153,400 17,068,000 170,000 17,238,000 18,391,400 Minneapolis 260 500 114,800 115,560 2,875 8,480,000 8,480,000 8,598,435 Kansas City 7,155,000 20,000 825,000 838,500 20,400 8,400 8,867,300 450 12,820,000 2,247,000 15,067,000 23,934,750 Dallas 2,450,900 281,500 1,233,600 3 966 000 8,300,000 765,000 9,065,000 13,031,000 San Francisco 2,428,750 6,050 27,150 170,500 2,632,450 10,880,000 963,500 11,843,500 14,475,950 Total 15,053,700 927,160 2,593,000 900 6,526,300 114,900 1,007,050 613,100 26,836,020 67,575 259,375,000 13,828,000 273,203,000 300,106,685 w i Amount of United States bonds with circulation privilege: Amount of United Stages securities without circulation privilege: 2 per cent consols and Panamas $15,980,860 3 per cent loan of 1961 $900 4 per cent loan of 1925 2,593,000 3 per cent conversion bonds 6,526,300 3* per cent Liberty loan * 114,900 Total 18,573,860 4~per cent Liberty loan 1,007,050 4 j per cent Liberty loan 613,100 3f per cent Victory notes 10,100 42 per cent Victory notes 57,475 2 per cent certificates of indebtedness1 259,375,000 Other Treasury certificates of indebtedness 13,828,000 Total . 281,532,825 1 Circulation privilege for Federal Reserve bank notes only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 24.— United States securities held by each Federal Reserve Bank on Dee. 31, 1918, distributed by classes and maturities. CO to U. S. certificates of indebtedness. Feder B a a l n R k e . serve 2 co p n 1 e s 9 r o 3 l c 0 s e . o n f t 2 1 P 9 p a 3 e n 6 r o - a 1 f m c 9 e 3 a n 8 s t . 4 l p o 1 e a 9 r n 2 c 5 o e . f nt lo 3 1 c a 9 e p n 6 n e 1 t o r . f 3 b 1 v p o 9 e c e n 4 r o r 6 s d n i - s c o 4 - e o n 7 n f . t L l 3 o i 1 c | b a 9 e p n e 4 n e 7 r t o r t . y f 4 1 L 9 l p 4 o i e 2 b a r - n e 1 c r 9 o t e 4 y f n 7 t . L l 4 i c o - b 1 e a - e n n r p t t . y er b T U o o . n t d S a s l . . 3 T n p 1 re o e -y a r te e s c s u a e . r r 1 n y t c 2 t i o r p c e s u e r l c a c u t e i r o n e n t All T c T o a c n r t t e e a e o r a l s t t s e i U a f u s i n . . r - y d S. sec Tu u o. r t i a t s i l e . s. of Federal other Reserve bank notes. g Boston $750 $529,000 $6,600 2 $568,880 $1,105,230 $666,000 $6,750,000 $7,416,000 $8,521,230 New York 1,255,400 $140,350 1,395,750 521,000 34,955,000 $93,374,500 128,850,500 130,246,250 Philadelphia $100 549,200 11,850 797,150 26,600 1,384,900 825,000 8,855,000 353,000 10,033,000 11,417,900 Cleveland 414,800 266,200 403,550 1,084,550 1,202,000 9,458,000 1,065,500 11,725,500 12,810,050 Richmond 915,100 237,000 42,850 37,750 1,500 1,234,200 899,000 3,885,000 4,784,000 6,018,200 Atlanta 240,600 21,000 10,300 16,750 183,700 81,400 553,750 667,000 5,297,000 102,000 6,066,000 6,619,750 Chicago 1,862,500 367,300 $1,768,000 $400 427,400 83,050 850 4,509,500 1,445,000 14,167,000 15,612,000 20,121,500 St. Louis 100 1,153,300 1,153,400 6,568,000 6,568,000 7,721,400 Minneapolis 260 500 114,800 4,970 120,530 530,000 4,350,000 266,500 5,146,500 5,267,030 Kansas City 7,155,000 20,000 825,000 838,500 19,950 8,000 8,866,450 821,000 3,499,000 58,000 4,378,000 13,244,450 Dallas 2,450,900 281,500 1,233,600 600 1,100 22,100 3,989,800 725,000 3,175,000 500,000 4,400,000 8,389,800 San Francisco 2 428,750 5,050 27,150 2,460,950 1,000,000 3,748,000 976,000 5,724,000 8,184,950 Total 15,053,700 927,160 2,593,000 900 6,526,300 503,600 1,136,500 1,117,850 27,859,010 9,301,000 104,707,000 96,695,500 210,703,500 238,562,510 1 Amount of United States bonds with circulation privilege: Amount of United States securities without circulation privilege: 2 4 p p e e r r c c e e n n t t c lo o a n n s o o l f s 1 a 9 n 2 d 5 Panamas $15 2 , , 9 5 8 9 0 3 , , 8 0 6 0 0 0 3 3 3| p p p e e e r r r c c c e e e n n n t t t c l L o o a i n n b v e e o r r f t s y i 1 o 9 l n 6 o 1 a b n o nds 6, 5 5 0 2 3 6 , , $ 6 3 9 0 0 0 0 0 0 o W Total 18,573,860 4~per cent Liberty loan 1,136,500 4J per cent Liberty loan 1,117,850 3 per cent 1-year notes i 9,301,000 2 per cent certificates of indebtedness i 104,707,000 Other Treasury certificates of indebtedness 90,695,500 Total 219,988, 65Q 1 Circulation privilege for Federal Reserve bank notes only. 2 Includes unpaid portion of bonds sold on partial payment plan to individual subscribers, other than employees. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 25.—Average daily holdings of each class of earning assets, by Federal Reserve Banks, during the calendar years 1918 and 1919. [In thousands of dollars.] Discounted bills. Purchased bills. United States securities. Total, 1918 g (including £ Federal Reserve Bank. Total, 1919. municipal ^ 1919 1918 1919 1918 1919 1918 warrants) gj H Boston 142,386 76,415 25,350 22,217 18,217 3,648 185,953 102,280 Q New York.... 726,895 439,076 78,282 133,096 74,104 50,390 879,281 622,632 | Philadelphia.. 193,195 75,556 1,581 18,375 23,263 7,135 218,039 101,067 Q Cleveland 126,649 73,080 44,148 27,175 20,389 17,722 191,186 117,977 § Richmond 94,546 54,300 7,687 6,411 9,206 3,392 111,439 64,103 t Atlanta 87,910 41,159 8,038 7,200 11,289 3,746 107,237 52,174 H Chicago , 209,114 150,018 49,458 29,575 35,003 11,560 293,575 191,167 C St. Louis 68,688 51,756 12,940 5,407 15,288 3,627 96,916 60,790 ^ Minneapolis... 41,759 33,464 20,682 4,851 8,678 3,814 71,119 42,129 O Kansas City.., 83,003 55, 733 7,811 3,707 17,960 12,069 108, 774 71,509 ^ Dallas 52,666 32,084 2,366 4,289 10,133 6,040 65,165 42,609 ^ San Francisco. 81,387 57,413 66,889 26,119 10,524 5,089 158,800 88,621 t te Total... 1,908,198 1,140,054 325,232 288,422 254,054 128,232 2,487,484 11,557,058 S 1 Includes $350,630 of municipal warrants. I w CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

134 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. AVERAGE DAILY HOLDINGS s Of EACH CLASS Or EARNING ASSETS BY FEDERAL RESERVE BANKS DURING CALENDAR YEAR 1918. 1 *3 Olker&LrnuigJls$et$ inel. CCS.Securities. 9 900 300 6VO 800 700 TOO 600 600 500 500 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT C CONDITION OF FEDERAL RESERVE BANKS. 135 AVERAGE DAILY HOLDINGS OF EACH CLASS OF EARNING ASSETS -4 BY FEDERAL RESERVE BANKS DURING CALENDAR YEAR 1919. 1 1 HI J3Ms®iscotinted. ?'•%& jfccefUuncesJBovujhttti Often^Market\ Hi Oth/r&urtungjlssets, incl. U.S.Securities. 5: 900 300 €00 €00 POO POO 600 600 500 500 400 400 300 300 200 200 100 100 Q O 1 s 1 I s i 1 I 1 I ! I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No 26.—Average amounts of earning assets held by each Federal Reserve Bank during 1919, earnings from each class of earning assets, and annual rales CO of earnings. Average balances for the year of the several classes of earning assets. Earnings from— Federal Reserve Banks. Disc b o il u ls n . ted Pur b c il h l a s. sed se S U c t u a n r t i e i t t e s i d es. M wa u r n r i a c n ip ts a . l Total. Dis b c i o l u ls n . ted Pur b c i h ll a s. sed Boston $142,385,669 350, $18,216,892 $185, 952,688 $6,003, $1,077,691 New York 726,894,981 281, 74,103,968 879,280,644 29,935, 3,326,839 Philadelphia 193,194,965 581, 23,262,740 218,038,952 7,987, 67,019 o Cleveland 126,649,267 147, 20,388,887 191,186,028 5,341, 1,882,985 H Richmond 94,545,750 686, 9,206,479 111,439,054 4, 351,418 O Atlanta 87,909,543 038, 11,288,704 $1,410 107,237,760 3,735, 367.338 Chicago 209,114,369 457, 35,002,957 293,574,699 8,915, 2,141,789 H W St. Louis 68,688,026 939, 15,288,098 96,915,514 2,918, 564,495 Minneapolis 41,758,732 ,682, 8,677,696 71,118,910 1,829, 882,564 Kansas City 83,002,885 ,810, 17,960,085 108; 773,706 3,888, 340,875 Dallas 52,666,018 ,366, 10,132,800 65;165,257 2,443, 113,397 San Francisco 81,387,347 10,523,781 158;800,170 3,667, 2,870,368 Total—1919. 1,908,197,552 325,231,333 254,053,087 1,410 2,487,483,382 80,768,144 13,986,778 1918 1,140,053,148 288,422,390 128,232,322 350,630 1,557,058,490 48,343,852 11,939,786 ft i W o 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Earnings from— Average rates of earnings on- Federal Reserve Banks. se U c S u n t r a i i t t t e e ie s d s. M wa u r n r i a c n ip ts a . l Total. co b D u i n l i l s t s - e . d c b h P i a u l s l r e s - . d se U S cu n ta r i i t t t e e i s d es. w M ar u p r n a a l i n c t i s - . Total. Per cent. Per cent. Per cent. Per cent. Per cent. Boston $369, $7,450,400 4.21 4.25 2.03 4.01 New York 1,888, 35,151,247 4.12 4.25 2.55 4.00 Philadelphia... 495, 8,550,651 4.13 4.24 2.13 3.92 Cleveland 450, 7,675,078 4.22 4.27 2.21 4.02 Richmond 185, 4,636,664 4.34 4.57 2.01 4.16 Atlanta 228, 885 4,331,414 4.25 4.57 2.03 5.00 4.03 Chicago 736, 11,793,857 4.26 4.33 2.10 4.02 St. Louis 320, 3,803,369 4.25 4.36 2.10 3.92 Minneapolis 213, 2,925,526 4.33 4.27 2.46 4.11 Kansas City... 405, 4,635,114 4.68 4.36 2.26 4.26 Dallas 229, 2,786,283 4.64 4.79 2.26 4.28 San Francisco. 238, 6,776,704 5.41 4.29 2.27 4.26 Total—1919.. 5,761,300 85 100,516,307 4.23 4.30 2.26 5.00 4.04 1918.. 3,828,801 14,222 64,126,661 4.24 4.14 2.99 4.06 4.12 g e Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 27.—Average rates (per cent) of earnings on total earning assets for each Federal Reserve Bank, by months, during the calendar year 1919. Federal Reserve Bank. January. F a e r b y r . u- March. April. May. June. July. August. Se b p e te r. m- October. No b v e e r. m- De b c e e r. m- T 1 o 9 t 1 a 9 l . , T 1 o 9 t 1 a 8 l . , Boston 3.97 3.95 3.92 3.92 3.95 3.96 3.96 3.92 3.96 4.13 4.30 4.01 4.02 New York 3.91 3.09 3.96 3.93 3.93 3.96 3.93 3.96 3.90 4.21 4.37 4.00 3.97 Philadelphia 4.01 3.98 3.96 3.92 3.87 3.87 3.81 3.78 3.78 3.77 4.02 4.22 3.92 4.19 Cleveland 4.08 4.06 3.99 3.96 4.00 3.99 3.95 3.90 3.81 3.90 4.15 4.27 4.02 4.14 Richmond 4.18 4. if 3.96 4.17 4.15 4.13 4.13 4.09 4.07 4.05 4.15 4.30 4.16 4.29 Atlanta 4.19 4.07 4.01 3.99 3.97 3.96 3.96 3.90 3.91 3.99 4.11 4.27 4.03 4.17 Chicago 4.10 4.09 4.07 4.00 4.00 4.03 3.99 3.85 3.73 3.93 4.16 4.32 4.02 4.19 St. Louis 4.02 3.92 3.95 3.88 3.79 3.81 3.87 3.74 3.85 3.87 4.08 4.17 3.92 4.17 Minneapolis 4.03 4.08 3.88 4.08 4.04 4.02 4.07 3.87 4.04 4.08 4.20 4.52 4.11 4.45 Kansas City 4.33 4.33 4.26 4.36 4.22 4.33 4.24 4.07 4.21 4.11 4.22 4.44 4.26 4.35 Dallas 4.34 4.42 4.36 4.33 4.28 4.37 4.15 4.11 4.14 4.11 4.20 4.32 4.28 4.30 w San Francisco 4.33 4.29 4.35 4.30 4.27 4.23 4.22 4.14 4.23 4.19 4.23 4.43 4.26 4.41 Total—1919. 4.04 4.03 4.02 4.01 3.99 4.01 3.98 3.93 3.91 3.95 4.16 4.29 4.04 1918. 3.75 3.81 3.86 4.07 4.29 4.20 4.31 4.27 4.21 4.13 4.19 4.14 4.12 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 28.—Statement showing condition of each Federal Reserve Bank on Dec. 81, 1919. RESOURCES. h) [Detailed figures shown for each bank in first column represent items as reported to the Board; figures in second column, printed in italics, indicate results of consolidation 3o according to methods used in the compilation of the Board's weekly statement.] r X Boston. New York. Philadelphia. W I—i w Gold bullion and coin $4,310,070.00 $93,534,518.73 $55,340.00 1 Gold certificates (including clearing-house certificates) 3,649,000.00 60,699,240.00 1,138,700.00 Gold and gold certificates $7,959,000 $154,234,000 $1,194,000 Gold settlement fund, Federal Reserve Board 34,350,523.48 34,351,000 14,976,859.68 14,977,000 31,678,751.93 31,679,000 o Gold with foreign agencies 9,586,375.44 9,586,000 48,194,795.30 48,195,000 10,505,616.91 10,505,000 II Total gold held by banks 51,896,000 217,406,000 43,378,000 1-3 Gold with Federal Reserve Agents. 73,510,970.00 73,511,000 306,756,215.00 306,756,000 \, 948,165.00 88,948,000 O t 3 —i Gold redemption fund 26,342,440.00 26,342,000 25,000,000.00 25,000,000 !, 448,460.00 8,449,000 o Total gold reserves 151,749,000 549,162,000 140,775,000 Legal-tender notes (including clearing-house certificates) 1,940,311.00 43,770,842.00 447,000.00 Silver certificates (including clearing-house certificates) 1,995,738.00 2,221,257.00 109,565.00 Silver coin 100,568.00 201,551.50 32,546.05 Legal-tender notes, silver, etc 4,037,000 46,194,000 589,000 Total reserves.. 155,786,000 595,356,000 141,364,000 1 Member banks' collateral notes, secured by Government war obligations.. 54,582,400.00 425,496,832.83 87,908,591.66 Other discounted bills secured by Government war obligations 69,946,815.70 136,593,009.62 86,541,067.11 Bills discounted, secured by Government war obligations 124,529,000 562,090,000 174,450,000 Member banks' collateral notes, secured otherwise than by Government war obligations 112,154.66 Other discounted bills secured otherwise than by Government war obligations and unsecured 63,397,695.36 228,713,445.79 35,405,303.29 Bills discounted, all other 63,610,000 228,713,000 35,405,000 Bills bought in open market 18,648,660.54 18,649,000 202,902,609.54 202,903,000 5,177,538.86 5,177,000 Total bills on hand., 206,688,000 993,706,000 215,032,000 CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 28.—Statement showing condition of each Federal Reserve Bank on Dec. 31, 1919—Continued. RESOURCES—Continued. Boston. New York. Philadelphia. United States Government bonds $539,400.00 $589,000 $1,256,800.00 $1,257,000 $1,384,900.00 $1,385,000 United States Victory notes 50,000.00 50,000 One-year certificates of indebtedness (Pittman Act). 21,436,000.00 59,276,000.00 30,280,000.00 Other certificates of indebtedness 369,000.00 8,445,500.00 407,000.00 United States certificates of indebtedness 21,805,000 67,721,000 30,687,000 o Total earning assets. 12,000 1,062,734,000 247, 104, 000 H Bank premises 1,102,826.56 1,103,000 3,994,081.72 3,994,000 500,000.00 500,000 O Due from foreign banks 1,141,326.31 National-bank notes 480,000.00 H Federal Reserve notes of other Federal Reserve Banks 600,000.00 4,666,000-00 132,000.00 w Unassorted currency 6,751,000.00 6,171,000.00 Transit items 73,237,200.55 189,140,539.09 71,597,476.61 Checks and other cash items 132,519.66 15,889,091.99 6,330,921.60 Exchanges for clearing house 4,223,644.32 38,642,925.19 8,739,332.58 Deferred items, Treasurer United States 575,373.52 Uncollected items and other deductions from gross deposits 85,424,000 ), 055,000 92,971,000 Five per cent redemption fund against Federal Reserve bank notes 1,071,800.00 1,072,000 2,900,000.00 ',,900,000 1,475,000.00 1,475,000 Other resources: Reimbursable expenditures— War-loan expenses 191,518.60 977,835.29 117,805.33 War Finance Corporation 5.64 11.60 W Liberty bonds—unpaid installments due from employees 11,432.50 3,246.00 o Deferred charges 5,958.41 6,985.91* 523.01 Difference account 333.12 17,870.59 298.32 Nickels and cents 69,407.42 38,910.83 50.03 Overdrafts—member banks 1,454.32 277,149.43 New building account 106,576.83 United States Liberty loan bonds held against participation certificates 40,650.00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All other resources 280,000 1,189,000 899,000 Total resources 472,697,000 1916,228,000 483, 813, 000 Cleveland Richmond Atlanta. X M w Gold bullion and coin $2 667 677.50 $459,945.00 $1,930 767.62 Gold certificates (including clearing-house certificates) 2,677,920.00 1,959,780.00 6,482,040.00 Gold and gold certificates $5,346,000 $2,420,000 $8,413,000 Gold settlement fund Federal Reserve Board 43,848,018.81 43,848,000 25,201,328.28 25,201,000 19,333,518.51 19,333, 000 1 Gold with foreign agencies 10,768,257.35 10,768,000 6,434,690.37 6,484,000 4,727,527.61 4,728,000 O Total gold held by banks 59,962,000 34,055,000 82,474,009 Gold with Federal Reserve agents 128,794,225.00 128,794,000 39,998,970.00 39,999,000 63,503,220.00 63, 503, 000 Gold redemption fund 1,872,462.24 1,872,000 7,196,777.49 7,197,000 7,940,425.13 7,941,000 Total gold reserves 190,628,000 81,251,000 103,918,000 Legal-tender notes (including clearing-house certificates) 595,288.00 122,000.00 163,325.00 Silver certificates (including clearing-house certificates) . 109,493.00 68,229.00 117,580.00 Silver coin . ... . 8,089.45 110.55 709,806.30 Legal-tender notes, silver, etc 713,000 190,000 990,000 Total reserves 191, 341, 000 81,441,000 104,908,000 Member banks7 collateral notes, secured by Government war obligations.. 101,361,120.00 67,520,380-00 61,832,680.00 Other discounted bills secured by Government war obligations . 13,164,365.85 13,986,311.34 4,558,955.09 Sills discounted secured by Government war obligations 114,525,000 81 506 000 66,392,000 Member banks' collateral notes, secured otherwise than by Government war obligations . . 113,000.00 150,000.00 635,000.00 Other discounted bills secured otherwise than by Government war obligations and unsecured 49,878,647.04 23,345,584.34 26,025,232.73 Sills discounted, all other . ... 49,992,000 23,496,000 26,660,000 Bills bought in open market 48,606,679.40 48,606,000 16,404,904.82 16,405,000 16,639,000.16 16,639,000 Total bills on hand. . . . .. 213,123,000 121 407,000 I 109,691,000 United States Government bonds.. .. 833,400.00 8S4,000 1,234,300.00 1,235,000 375,300.00 375,000 United States Victory notes 10,250.00 10,000 300.00 3,900.00 4,000 NDITIOl 'A O 1 1 w W w Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. %S.—Statement showing condition of each Federal Reserve Bank on Decfjl, 1919—Continued. RESOURCES—Continued. to Cleveland Richmond. Atlanta. One-year certificates of indebtedness (Pittman Act) 1284,000.00 #12,260,000.00 $15,664,000.00 Other certificates of indebtedness 23,299,000.00 1 846 00 United Stales certificates of indebtedness $23,583,000 $12,260, 000 $15,666,000 Total earning assets 237,550,000 134,902,000 125,736,000 g Bank premises . . . . 894,683.73 895,000 524,024.50 524,000 486,926.88 487,000 National bank notes 1 270 055.00 113,250.00 367,700.00 Bank notes of other Federal Reserve Banks 10,230.00 35,000.00 449,700.00 Federal Reserve notes of other Federal Reserve Banks 2,176,355.00 376,370.00 1,278,455.00 Unassorted currency 3,185,787.00 4,217,494.00 7,181,806.00 Transit items 67,974,177.20 84 182,455.68 36,319,680.10 Checks and other cash items 21,122.78 154,714.81 67,064.23 TCxchfvngftS far ^tearing honsA , , . 7,870,166.85 5,113,094.03 2,602,513.91 Domestic transfers purchased 1,190,000.00 Uncollected items and other deductions from gross deposits 83,698,000 94,193, 000 48,267,000 Five per cent redemption fund against Federal Reserve bank notes 1,122,000.00 1,122,000 643,300.00 643,000 878,550.00 878,000 Other resources: Reimbursable expenditures— War-loan expenses 328,957.01 514,860.47 121,786.25 War Finance Corporation 1,428.97 .47 Deferred charges ... . .. . . 1,970.09 735.60 9,269.68 Difference account . . . .. . . .. 723.76 4,817.48 3,088.67 Nickels and cents .. . . . .. 1,376.15 13.93 6,170.35 O W Overdrafts member banks 39,976.71 557,198. 65 10,049.31 New building account.. 392.19 Dividend account, including premium'on surrendered stock 280,236.67 All other resources 655,000 1,078,000 151,000 Total resources . . 515,261,000 312,781,000 280,4m, 000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Chicago. St. Louis. Minneapolis. Gold bullion and coin $160,000.00 $237.50 $2,099,845.00 Gold certificates (including clearing-house certificates).. 24,021,000.00 2,756,890.00 6,175,430.00 Gold and gold certificates $24,181,000 $2,757,000 S8,275,000 Gold settlement fund, Federal Reserve Board 76,478,739.40 76,479,000 17,887,751.75 17,888,000 4,872,374.56 4,872,000 Gold with foreign agencies 15,627,105.15 15,627,000 6,172,049.99 6,172,000 3,545,645.72 3,546,000 Total gold held by banks 116,287,000 26,817,000 16,693,000 Gold with Federal Reserve agents 243,604,230.00 243,604,000 61,624, 715.00 61,625,000 35,846,605.00 35,847,000 Gold redemption fund 19,533,109.59 19,533,000 6,132,620.00 6,132,000 205,448.00 205,000 O Total gold reserves 379,424,000 94,574,000 52,745,000 S Legal-tender notes (including clearing-house certificates). 1,049,900.00 1,164,189.50 48,730.00 Silver certificates (including clearing-house certificates)... 755,524.00 176,580.00 14,669.00 O Silver coin 115,019.00 1,013,126.00 1,850.00 Legal-tender notes, silver, etc 1,921,000 2,354,000 66,000 o Total reserves 381,345,000 96,928,000 53,811,000 14 Member banks' collateral notes, secured by Government war obligations.. 143,949,500.00 37,047,050.00 18,842,643.67 Other discounted bills, secured by Government war obligations 6,868,814.23 8,021,177.23 3,488,669.47 Bills discounted, secured by Government war obligations 150,819,000 45,068,000 '2,331,000 Member banks' collateral notes, secured otherwise than by Government I war obligations 148,000.00 560,010.19 1,120,000.00 Other discounted bills, secured otherwise than by Government war obligations and unsecured 135,941,860.97 32,051,235.84 50,405, 778.55 Bills discounted, all other '6,090,000 32,611,000 51,526,000 Bills bought in open market 92,650,234.57 % 650,000 32,803,679.36 32,804,000 12,599,452.47 12,600,000 1 Total bills on hand 379,559,000 110,483,000 86,457,000 United States Government bonds 4,477,100.00 4,477,000 1,153,400.00 1,153,000 115,561.00 115,000 s One-year certificates of indebtedness (Pittman Act) 39,612,000.00 17,068,000.00 8,480,000.00 Other certificates of indebtedness 176,000.00 170,000.00 United States certificates of indebtedness 39,788,000 17, Total earning assets ',3,824,000 «, 874,000 95,052,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 28.—Statement showing condition of each Federal Reserve Bank on Dec. 81, 1919—Continued. RESOURCES—Continued. Chicago. St. Louis. Minneapolis. 2?anfc premises $2,936,149.26 $2,936,000 $355,736.50 $356,000 $600,000.00 $600,000 National bank notes... 1 1,151,517.00 747,310.00 36,890.00 Bank notes of other Federal Reserve Banks 60,000.00 71,192.00 Federal Reserve notes of other Federal Reserve Banks 5,486,572.17 1,957,805.00 541,385.00 Unassorted currency 5,888;621.00 134,500.00 Transit items 105,213,721.14 61,374 327. 97 20,415,770.08 Checks and other cash items 343,283.18 195,414.11 Exchanges for clearing house 13,019,211. 23 3,460,255. 75 1,945,609.22 Domestic transfers purchased 3,570,000.00 1,136,265.19 Unmatured Government coupons 111.81 Uncollected items and other deductions from gross deposits 28,501,000 73,843,000 24, !fi®> 000 Five per cent redemption fund against Federal Reserve bank notes 1,888,150.00 1,888,000 672,800.00 673,000 400,350.00 • 400,000 Other resources: Reimbursable expenditures— War-loan expenses 532,481.16 105,203.98 131,700.81 War Finance Corporation 1,252.95 93.26 Furniture and equipment 1.00 Deferred charges ' 11,255.50 17,263.35 .. 7,685.42 Difference account 5,069.20 Nickels and cents 2,141.84 113,486.98 10.75 Overdrafts—member banks 6,648.78 1,046.64 United States Liberty loan bonds held against participation certificates 2,850.00 o Dividend account, including premium on surrendered stock 92,353.86 All other resources 555,000 238,000 237,000 Total resources.. 939,049,000 300,912,000 173,506,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Kansas City. Dallas. San Francisco. Total. Gold bullion and coin $40,375.00 $326,500.00 $11,070,025.00 $116,655,301.35 Gold certificates (including clearing-house certificates) 150,850.00 6,143,050.00 2,283,290.00 118,137,190.00 Gold and gold certificates $191,000 $6,469,000 $13,353,000 $234,792,000 W Gold settlement fund, Federal Reserve Board 25,932,982.00 25,933,000 17,073,569.26 17,073,000 27,109,565.22 27,110,000 338,743,982.88 338,744,000 w Gold with foreign agencies 6,303,370.16 6,304,000 3,414,325.49 3,415,000 6,040,729. 73 6,041,000 131,320,489.22 131,321,000 3 Total gold held by banks 8,000 26,957,000 46,504,000 704,857,000 G Id with Federal Reserve agents. 39,408,970.00 39,409,000 27,544,580.00 27,545,000 129,050,435.00 129,050,000 1,238,591,300.00 1,238,591,000 Gold redemption fund 4,374,862.20 4,375,000 3,711,624.90 3,712,000 8,638,655.00 8,639,000 119,396,884.55 119,397,000 Total gold reserves 76,212,000 4,000 184,193,000 ',845,000 O Legal-tender notes (including clearing-house certificates) 167,600.00 72,895.00 228,660.00 49,770,740.50 Silver certificates (including clearing-house certifi- 20,000.00 132,220.00 91,099.00 5,811,954.00 Silver coin 177,099.60 992,313.50 26,123.25 3,378,203.20 Legal-tender notes, silver, etc.. 364,000 1,197,000 346,000 58,961,000 I Total reserves.. 76,576,000 59,411,000 184,539,000 2,121,806,000 Member banks' collateral notes, secured by Government war obligations 40,815, . 44 38,904,309.30 40,624,550.00 1,118,885,525.90 Other discounted bills, secured by Government war 1 obligations 4,474,907.16 472,078.51 2,926,822. 71 351,042,994.02 Bills discounted, secured by Government war obligations. 45,290,000 '9,376,000 ), 552,000 1,469,928,000 Member banks' collateral notes, secured otherwise than by Government war obligations 5,670,968.49 62,500.00 467,500.00 9,039,133.34 Other discounted bills, secured otherwise than by Government war obligations and unsecured 42,419,386.57 18,877,031.14 29,877,085. 76 736,338,287.38 Bills discounted, all other 48,090,000 18,940,000 \344,OOO 745,377,000 Bills bought in open market 18,691,464.20 18,692,000 6,420,648.92 6,421,000 102,558,190.86 \ 558,000 574,103,063.70 574,104,000 Total bills on hand 112,072,000 4,737,000 176,454,000 L 19,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. £8.—Statement showing condition of each Federal Reserve Bank on Dec. 31, 1919—Continued. RESOURCES-Continued. Kansas City. Dallas. San Francisco. Total. United States Government bonds $8,867,300.00 $8,868,000 $3,966,000.00 $8,966,000 $2,632,450.00 $2,632,000 $26,835,911.00 $26,836,000 United States Victory notes 450.00 64,900.00 64,000 3ne-year certificates of indebtedness (Pittraan Act).. 12,820,000.00 10,880,000.00 228,060,000.00 3ther certificates of indebtedness 2,247,000.00 9,065,000.00 963,500.00 45,143,846.00 United States certificates of indebtedness 15,067,000 9,065,000 11,844,000 .. 273,204,000 Total earning assets.. 136,007,000 77,768,000 190,980,000 3,089,518,000 Bank premises 461,686.76 462,000 399,398.65 399,000 400,000.00 )0,000 12,655,514.56 12,656,000 O Due from foreign banks 1,141,326.31 National bank notes 330,500.00 | 227,140.00 242,304.00 4,966,666.00 Bank notes of other Federal Reserve Banks 17,100.00 j 3,250.00 29,455.00 675, 927.00 Federal Reserve notes of other Federal Reserve Banks. 788,500.00 | 402,650.00 4,017,563.00 22,423;655.17 Unassorted currency 2,739,301.00 1,882,346.00 5,521,980.00 43,673,835.00 Transit items 77,800,762.51 ! 48,180,320.89 34,854,858.76 870,291,290.58 Checks and other cash items 228,878.16 | 1,324,456.08 177,907.39 24,865,374.05 Exchanges for clearing house 1,524,324.86 789,288.35 2,581,634.50 90,512,000.79 Domestic transfers purchased 8,515,395.13 6,847,502.00 21,259,162.32 Deferred items, Treasurer United States 575, 373.52 CJnmatured Government coupons 111.81 Uncollected items and other deductions from gross deposits 83,429,000 61,325,000 54,273,000 1,080,385,000 Five per cent redemption fund against Federal Reserve bank notes 957,460.00 18,000 558,200.00 558,000 665,000.00 665,000 13,232,610.00 13,282,000 Dther resources: Reimbursable expenditures— War-loan expenses 407,176.18 |. 213,594.00 211,737.81 3,854,656.89 War Finance Corporation 11.22 2,804.11 Liberty bonds—unpaid installments due from employees 5,772.50 ' 19,300.00 39,751.00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Cost of Federal Reserve currency 112,194.92 112,194.92 Furniture and equipment 83,232.69 83,233.69 Deferred charses • 10,278.21 8,986.70 80,911.88 Diffprpnpe account .... 46.45 96.94 558.83 32,903.36 Adjustment a/c subscriptions Fourth Liberty loan 12,415.39 12 415.39 Nickels and cents 40,143.08 4,649.54 789.02 277 149.92 Overdrafts—member banks 42,856.28 82,984.41 20,680.25 1,040,044.78 New building account 106,969.02 United States Liberty ]oan bonds held against participation certificates -•.. .... 43,500.00 Dividend account, including premium on surrendered stock 372,590.53 Profit and loss 7,421.06 7,421.06 Suspense 21,096.50 21,096.50 A11 other resources ... 496,000 360,000 450, 000 6,088,000 Total resources 297,928,000 199,821,000 431,257,000 6,323 680 000 1 1 LIABILITIES. Boston. New York Philadelphia Capital paid in by members $7,103,900.00 $22,390,750. 00 .... .17,884,150.00 Capital paid in by applicants for membership 3,600.00 Capitnl paid in $7 108,000 $22,391,000 $7,884,000 Surplus 5,205,759.33 5,206,000 32,922,051.13 82,922,000 5,311,335.94 5,311,000 — • -•• U. S. Treasurer—general account: Collected funds 1,122,752.48 4,091,625. 67 5,188,851.06 Uncollected funds . .... 1,756,767.83 Government deposits 1,123,000 5,848,000 5,189,000 Due to jnerribers—reserve account 117,083,126.15 117,083,000 755,951,452. 59 755,952,000 110,541,160.68 110,541,000 Gold settlement fund—suspense 21,725,206.44 72,964,615.44 23,447,942.14 Government transit items 5,875,753.00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 28.—Statement showing condition of each Federal Reserve Bank on Dec. SI, 1919—Continued. LIABILITIES-Continued. co Boston. New York. Philadelphia. All other transit items $45,468,617.21 $95,905,112.17 $46,308,843.84 Deferred availability items $67,194,000 $168,870,000 $75,632,000 Foreign G overnment credits 5,277,466.11 27,569,776.45 5,783,524. 49 Nonmembcrs—clearing account 3,500.00 11 655 844 36 I Cashiers' checks 149,813.01 6,170,350.28 3,486,814.95 Federal Reserve exchange drafts - 32,866.84 88,358.81 o Federal Reserve transfer drafts ,. 379 566.50 H Other deposits, including foreign Government credits 6,843,000 45,396,000 9,359,000 O Total gross deposits 191,243,000 976,066,000 200,721,000 H W Federal Reserve notes outstanding 254,717,970.00 939,715,955.00 247,895,665.00 Less: Held by banks and branches 8,124,500.00 126,285,385.00 9,677,915.00 Forwarded for redemption 2,500,900.00 5,814,600.00 1,167,100.00 Total deductions 10,625,400.00 132,099,985.00 10,845,015.00 Federal Reserve notes in actual circulation 24k, 092,000 807,616,000 237,051,000 Federal Reserve bank notes outstanding 20,912,000.00 58,200,000.00 29,052,000.00 Less: Held by banks and branches 200.00 3,527,000.00 260,249.00 W Federal Reserve bank notes in actual circulation—net liability 20,912,000 54,673,000 28,792,000 O Other liabilities: Profit and loss 242,303. 70 1,311,644.06 258,741.65 Earnings: Discount on bills discounted . .. 3,041,516.00 15,678,039.09 4,184,193. 99 : : : : :: Discount on bills purchased 802,007.42 2,157,089.28 32,212.20 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Interest on United States securities. 229,188. 74 960,715.01 313,559.80 Penalties on deficient reserves 13,794.65 31,281.02 16,013.11 Income and expenses—real estate... 54,406.20 Discount profit on bills sold 4,779.43 Miscellaneous 565.00 75,543.97 14,539.92 W Gross earnings 4,087,071.81 18,961,854.00 4,560,519.02 Less current expenses 876,376.87 3,035,886.09 959,189.06 s Current net earnings 3,210,694.94 15,925,967.91 3,601,329.96 Deduct—dividends paid in current year.. 674,187. 71 232,835.41 Net earnings available for dividends, surplus, and franchise tax. 3,210,694.94 15,251,780.20 3,368,494.55 Reserved for taxes other than franchise tax 1,659.51 3,637.20 54,495.49 Reserved for sundry expenses 104,375. 00 222.57 Self insurance reserve 51,474.12 Reserve against undetermined liabilities 200,000.00 Depreciation reserve on United States bonds 92,697.48 200,880.00 116,131.00 Suspense credits 4,290.39 30,305.45 4,580.85 Gold in transit or in custody—withheld for expense account 3,192,092.38 I Participation certificates and contract—Liberty loan bonds 20,130.00 Unearned discount 807,179.11 2,737,510.26 544,462.25 Total 4,358,825.13 23,103,828.67 4,347,128.36 Less interest accrued on United States securities. 222,145.92 543,500.33 292,903. 89 AII other liabilities 4,136,000 22,560,000 4,054,000 §3 Total liabilities. 472,697,000 1,916,228,000 483,813,000 W CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 28.—Statement showing condition of each Federal Reserve Bank on Dec. Si, 1919—Continued. LIABILITIE S—Continued. Cleveland Richmond Atlanta. Capital paid in by members $9,532,950.00 14,392,000.00 $3,425,650.00 Capital paid in bv applicants for membership 2,550.00 -•••••- * Capital paid in , $9,583,000 $4,392,000 $3,428,000 Surplus 5,859,600.00 5,860,000 3,799,846.22 8,800,000 2,805,000.00 2,805,000 U. S. Treasurer—general account: Collected funds 1,675,111.23 2,839,730.49 2,474,263.27 Uncollected funds 232 728 11 Government deposits 1,675,000 2,840,000 2,707,000 Due to members—reserve account 129,415,061.66 129,415,000 62,712,122.52 62,712,000 58; 388,305. 76 58,888,000 Gold settlement fund—suspense 24,836 625.39 33,800,592.08 .... 5,862,338.16 Government transit items 622,632. 79 1 551 849 08 All other transit items 46,144,272.82 39,970,579.66 30,287,211.48 w Deferred availability items 71,603,000 75,828,000 37,148,000 Foreign Government credits. 5,928,112. 60 3 542 408. 75 2 602 586 02 Nonmembers—clearing account 12,498.22 Cashiers' checks 173,841.58 69 642 70 163,501.14 Federal Reserve exchange drafts 25,966.06 2,917.62 Federal Reserve transfer drafts 208.00 Other deposits, including foreign Government credits 6,128,000 8,615,000 2,779,000 w. Total gross deposits 208,821,000 144,490,000 101,022,000 - Federal Reserve notes outstanding. 283,801,770.00 151,704,920.00 160,107,820.00 ! Less: w Held by banks and branches 17,355,115.00 5,298,000.00 4,108,635.00 Forwarded for redemption 1,709,065.00 641,600.00 488,250.00 o Total deductions 19,064,180.00 5,939,600.00 4,596,885.00 ... Federal Reserve notes in actual circulation 264,738,000 145,765,000 155,511,000 Federal Reserve bank notes outstanding 22,491,000.00 12,216,000.00 15,777,600.00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Less: Held by banks and branches 460,010.00 158,050.00 216,300.00 Forwarded for redemption 23,500.00 Total deductions 483,510.00 158,050.00 216,300.00 Federal Reserve bank notes in actual circulation—net liability 22,007,000 I 12,058,000 15,561,000 H Other liabilities: W Profit and loss 252,200.15 178,991.05 94,401.24 M Earnings: IH Discount on bills discounted * 2,894,597.08 2,101,839.95 2,069,466.98 Discount on bills purchased 1,098,596.55 188,301.48 196,308.42 Interest on United States securities 276,400.89 115,671.33 140,608.60 O Penalties on deficient reserves 37,365.69 61,457.28 48,596.56 Domestic transfers bought and sold—net.. 29,362.64 Profit on United States securities 2 350.00 O 3 Miscellaneous 5,775.09 753.84 6,391.62 o Gross earnings ! 4,344,447.94 2,468,023.88 2,461,372.18 Less current expenses 764,236.86 510,661. 72 559,059.05 1 Current net earnings . .. 3,580 211.08 1 957,362.16 1,902,313.13 Deduct—dividends paid in current year 1,007.85 128,811.94 101,012.73 Net earnings available for dividends, surplus, and franchise tax.. 3,579,203.23 1,828,550.22 1,801,300.40 Reserved for taxes other than franchise tax 30,101.94 19,970.00 25,583.24 Reserved for sundry expenses 20,316.50 49,378.20 1 Depreciation reserve on United States bonds 84,406.79 63,186.30 5,402.23 Participation certificates and contract—Liberty loan bonds 1,839.37 Deferred credit—war loan expenses 9,520.00 Unearned discount 582,891.31 260,184.59 259,673.32 3 Total 4,528,803.42 2,382,558.03 2,235,738.63 Less interest accrued on United States securities 226,732.80 106,576.81 135,903.92 W A11 other liabilities 4,302,000 2,276,000 2,100,000 Total liabilities 515,261,000 812,781,000 280,427,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 28.—Statement showing condition of each Federal Reserve Bank on Dec. 31, 1919—Continued, Or LIABILITIES—Continued. to Chicago. St. Louis. Minneapolis Capital paid in by members $12,347,150.00 $4,064,450.00 $3,073,950.00 Capital paid in $12,847,000 $4,064,000 $3,074,000 Surplus 9,710,581.44 9,710,000 2,589,495.50 2,689,000 2,319,601.04 2,320,000 United States Treasurer—General account: Collected funds 350,003.59 1,576,568.34 513,187.11 Uncollccted funds . . 775,815.62 Government deposits . . . 350,000 2 353 000 513,000 Due to members—reserve account 257,978,903.15 257,979,000 72,282,788. 29 72,283,000 53,827,751. 78 53,828,000 Gold settlement fund—suspense 43,258,856.55 22,401,610.62 6,087,509.78 Government transit items 1,899,176.02 3,561.59 107,856.45 Ail other transit items 55 467 389.26 30,975,608.33 7,976,836.89 W Domestic transfer^ sold 200 000.00 Deferred availability items 100,825,000 68 381 000 14,262,000 Foreign G overnment credits 8,602,992.69 3,397,820.65 1,951 939.52 Nonmembers—clearing account 525,711.41 348,498.56 115,000.00 Cashiers' checks 826,704.59 199,436.62 191,259.44 Federal Reserve exchange drafts 10,000.00 1,879.26 4,088.25 Federal Reserve transfer drafts . 10,000.00 53.19 ft Other deposits, including foreign Government credits 9,976,000 8,947,000 2,262,000 i Total gross deposits 369,180,000 181,964,000 70,865,000 Federal Reserve notes outstanding . 535,459,230.00 164,718,955.00 88,442,605.00 w o Less: Held by banks and branches 30,238,330.00 17,589,880.00 896,665.00 Forwarded for redemption 5,082,225.00 1,830,745.00 359,250.00 Total deductions 35,320,555.00 19,420,625.00 1,255,915.00 Federal Reserve notes in actual circulation 500,139,000 145,298,000 87,187,000 ===== Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve bank notes outstanding . 41,289,800.00 16,608,000.00 8,288,000.00 Less: Held by banks and branches 340,000.00 1,109,676.00 87,925.00 Federal Reserve bank notes in actual circulation—net liability 40,950,000 15,498,000 8, W0,000 Other liabilities: Profit and loss .. » 366,037.28 109,550.80 100,484.16 Earnings: Discount on bills discounted 4,873,548.83 1,540,175.19 1,070,128.60 Discount on bills purchased 1,404,763.69 366,713.57 448,447.84 Interest on United States securities 486,781.19 192,740.99 91,894.86 Penalties on deficient reserves 26,234.32 26,464.85 14,565.47 Domestic transfers bought and sold—net 81,338.37 9,152.96 28,629.73 Interest earned—bills of lading drafts 244.02 H Miscellaneous 11,052.95 9,389.02 1,269.03 o Gross earnings 6 883 719.35 2,144,636.58 1,655,179.55 Less current expenses 1,421,459.05 980,479.74 298,477.19 Current net earnings 5,462,260.30 1,164,156. 84 1,356,702.36 Deduct—dividends paid in current year 360,339.61 119,878.48 11,173.75 Net earnings available for dividends, surplus, and franchise tax.. 5,101,920.69 1,044,278.36 1,357,876.11 Reserved for sundry expenses 151,495.19 56,180.04 18,813.39 Depreciation reserve on United States bonds . . 97,571.50 172,997.00 53,610.82 Difference account 40,296.63 226.57 Participation certificates and contract Liberty loan bonds 2,850.00 1 Unearned discount 1,393,585.65 296,691.41 408,542.58 Total 7;, 153,756.94 1,679,924.18 1,939,327.06 5 Less interest accrued on United States securities 380,865.65 181,755.28 79,271.98 All other liabilities 6,778,000 1,499,000 1,860,000 Total liabilities 989 049 000 800,912,000 178,506,000 1 Interest received. 00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 28.—Statement showing condition of each Federal Reserve Bank on Dec. 31, 1919—Continued. LIABILITIES—Continued. Kansas City. Dallas. San Francisco. Total. Capital paid in by members $4,015,550.00 $3,420,700.00 $5,486,750.00 $87,137,950.00 % Capital paid in by applicants for membership 263,000.00 269,150.00 Capital paid in $4,016,000 $3,421,000 $5,749,000 $87,407,000 d Surplus 3,957,137.55 3,957,000 2,028,868.33 2,029,000 4,577,547.49 4,578,000 81,086,823.97 81,087,000 fe United States Treasurer—general account: g Collected funds 813,785.80 245,397.19 3,434,902.39 24,326,178.62 Uncollected funds 976,044.10 2 654 949 74 237,991.43 6,634,296.83 c Government deposits 1,790,000 2,900,000 3,673,000 30,961,000 ^ Due to members—reserve account 90,406,431.51 90,406,000 63,371,988.44 63,372,000 117,929,882.55 117,930,000 1,889,888,975.08 1,889,889,000 Gold settlement fund-suspense 11,249,008.19 1.0,168,008. 46 7,688,511.54 283,490,824.79 Government transit items 1 907 445 81 13 056 457 87 All other transit items „ , 56,008,696.35 29,179,114.99 25,174,902.17 508,867,185.17 w Domestic transfers sold 500,000.00 1,000.35 701,000.35 67 758 000 39,347,000 34,772,000 806,115,000 ^ Foreign Government credits 3,470,114. 70 1,879,645. 46 3,325,526.59 73,331,914.03 2 Nonmernbers—clearing account 3,749.57 1,575,364.38 14,240,166.50 Cashiers' checks . . 249,940. 45 156,554. 78 985,638.38 12,823,497.92 Federal Reserve exchange drafts 10. 98 20,159. 44 186,247.26 Federal Reserve transfer drafts 6,135. 38 395,963.07 Other deposits, including foreign Government credits.... 3,724,000 2,043,000 5,906,000 100,978,000 G§ Total gross deposits 163,678,000 107,662,000 162,281,000 2,827,943,000 <j Federal Reserve notes outstanding 110,555,755.00 78,644,065.00 280,024,435.00 3,295,789,145.00 w Less: O Held by banks and branches 5,263,450.00 3,118,890.00 35,056,575.00 263,013,340.00 Forwarded for redemption 1,203,050.00 594,850.00 2,506,100.00 23,897, 735.00 Total deductions 6,466,500.00 3,713,740.00 37,562,675.00 286,911,075.00 Federal Reserve notes in actual circulation 104,089,000 74,930,000 242,462,000 3,008,878,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve bank notes outstanding 19,980,000.00 10,972,400.00 13,200,000.00 268,986,800.00 Less: Held by banks and branches 447,300.00 511,050.00 1,355,095.00 8,472,855.00 »!q Forwarded for redemption 23,500.00 22 C C 00 D O Total deductions 447,300.00 511,050.00 1,355,095.00 8,496,355.00 W X j!$ Federal Reserve bank notes in actual circulation—net h-l w *? liability 19,533,000 10,461,000 11 845 000 260,490,000 h1 JL Other liabilities: M Profit and loss 170 634.53 236,596.93 3,321,585.55 Earnings: Discount on bills discounted 2,041,071.78 1,269,176.88 1,689,866.24 42,453,620.61 Discount on bills purchased 156,321.16 70,285.50 1,923,956.53 8,845,003.64 Interest on United States securities 241,693.16 128,544.13 126,345.56 3,304,144.26 s Penalties on deficient reserves 64,039.84 37,923.67 33,844.66 411,581.12 Commissions 48.33 48.33 o Domestic transfers bought and sold— net 92,935.89 115,895.16 111,689.26 469,004.01 Profit on United States securities 2,350.00 Income and expenses—real estate 54,406.20 Discount profits on bills sold 4,779.43 Interest earned—bills of lading drafts 244.02 Miscellaneous 19,412.13 322.47 2.25 145,017.29 Gross earnings 2,615,473.96 1,622,147.81 3,885,752.83 55,690,198.91 Less current expenses 658,069.06 595,836.93 588,265.23 11,247,996.85 g Current net earnings \ 1,957,404.90 1,026,310.88 3,297,487.60 44,442,202.06 Deduct—dividends paid in current year 116,943.77 U7,392.87 1,716,450.88 Net earnings available for dividends, surplus, and franchise tax 1,840,461.13 1,026,310.88 3,314,880.47 42,725,751.18 Reserved for taxes other than franchise tax 19,481.36 966.55 155,895.29 Reserved for sundry expenses 38,201.29 1,622.25 2,377.58 442,982.01 1 Interest received. Cn Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No* 28,—Statement showing condition of each Federal Reserve Bank on Dec. 81, 1919—Continued. LIABILITIES—Continued. Kansas City. Dallas. San Francisco. Total. Self insurance reserve $51,474.12 Reserve against undetermined liabilities 200,000.00 Depreciation reserve on United States bonds $220,734.00 $240,662.50 $85,656.45 1,433,936.07 Difference account 1,114.51 41,637.71 Suspense credits 39,176.69 Gold in transit or in custody —withheld for expense account 3 192 092 38 Participation certificates and contract Liberty loan bonds 400.00 25,219.37 Deferred credit—war loan expenses 9,520. 00 War Finance Corporation 3,823.67 3,823.67 Unearned discount 549,091.77 137, 725.42 813,812.31 8,791,349.98 Total 2,819,522.72 1,429,626.08 4,455,404.80 60,434,444.02 Less interest accrued on United States securities 164,385.32 112,152. 07 113,199.31 2,559,393.28 All other liabilities $2,655,000 $1,318,000 $4,342,000 $57,875,000 Total liabilities 297,928,000 199,821,000 431,257,000 6,328,680,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Exhibit D.—INVESTMENT OPERATIONS OF FEDERAL RESERVE BANKS. No. 29.—Bills discounted for member banks during each month in 1919, distributed by maturities, and totals for 1919, 1918, and 1917. PAPER MATURING WITHIN 15 DAYS. X W Federal Reserve Bank. January. February. March. April. May. June. July. w H Boston $311, 273,713 $322,149,332 $320,114;049 $436,840,788 $419,500,722 $324,455,859 $353,077,945 New York 3,398,475,347 2,628,995,396 2,613,267,364 2,644,177,339 4,026,657,505 3,052,318,144 3,909,040,887 Philadelphia... 665,577,813 634,486,873 829,649,998 906,514,792 942,806,595 1,076,377,278 1,028,780,503 Cleveland 194,140,669 191,790,359 240,864,416 221,085,899 234,154,805 216,488,479 279,197,860 Richmond 269,866,081 266,088,494 323,231,765 350,133,113 356,051,299 386,520,481 405,606,197 Atlanta 155,743,585 102,699,669 137,792,237 143,507,225 158,127,833 152,629,857 170,558,544 o Chicago 295,547,561 256,787, 724 332,880; 925 341,147,153 396,959,732 368,517,225 345,285,844 St. Louis 133,609,519 112,104,716 177,244,541 192,518,199 200,850,120 165,035,232 138,108, 763 3 Minneapolis... 16,554,472 031,200 20,699,576 72,076,398 444,565 36,693,625 26,345, 775 Kansas City... 82,872,805 76,546,682 108,498,591 125,176,472 132; 642,066 112,788,027 98,405,520 Dallas 73,189,260 79,970,053 94,351,851 106,725, 726 120.603,080 105,568,044 92,712,166 San Francisco. 152,445,998 154,337,332 163, 173,460,437 172,133,515 142,068,912 117,296,204 Total... 5,749,296,823 4,837,987,830 5,362,279,921 5, 713,363,541 7,237,931,817 6,139,461,173 6,962,415,208 Per cent 7.6 6.4 *7.0 7.5 9.5 8.1 9.2 W Xfl en Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. £9.—Bills discounted for member banks during each month in 1919,'distributed by maturities, and totals for 1919, 1918, and 1917—Continued. PAPER MATURING WITHIN 15 DAYS-Continued. 00 Federal Reserve Bank. August. September. October. November. December. Total. Per cent. Boston $217,863,707 $283,850,412 $336,369,850 $352,813,001 $453,306, 413 $4,131,615, 791 5.4 d New York.... 3,483,588,766 3,460,922,800 4,439;070,914 4,321,518,142 3,791,687, 787 41,769,720,391 54.9 Philadelphia.. 920,489,149 1,001,506,921 1,142,672,864 609,362,351 803,063,687 10,561,288,824 13.9 Cleveland 266,846,514 289,118,643 291, 611,582 266,143,965 290,850,077 2,982,293,268 3.9 Richmond 369,532,334 328,061,052 304,667,490 249,647,419 349,676,464 3,959,082, 789 5.2 o Atlanta 171,855,326 195,965,443 183,856,237 147,354,424 136,599,842 1,856,690,232 2.5 Chicago 357,850,380 320,726,014 341, 469,716 352,411,768 358,299,033 4,067,883,075 5.3 St. Louis 144,315,176 186,915,887 206,084,642 163,011,260 152,818,631 1,972,614,686 2.6 Minneapolis... 37,332,607 55;354,335 76,927,602 63, 993,209 56,046,873 551,500,237 .7 Kansas City... 96,168,135 119,635,335 149,768,912 112,994,512 114,929,515 1,328,427,572 1.7 3 Dallas 89,309,602 105,412,808 125,978, 562 65,606,885 54,457,932 1,113,885,949 1.5 San Francisco. 124,111,221 135,785,568 161, 048,024 155,897,243 184,613,854 1,836,882,916 2.4 Total... 6,279,262,917 6,483,255,818 7,759,526,395 0, 754,179 6,746,350,108 76,131,885,730 Per cent 8.2 8.5 10.1 9.0 8.9 100.0 PAPER MATURING AFTER 15 DAYS BUT WITHIN 30 DAYS. s Federal Reserve Bank. January. February. March. April. May. June. July. $1,926,086 $1,683,158 $3,017,752 $3,792,930 $1,015,736 $3,343,399 $5,334,420 o New York 1,579,894 1,295,504 1,566,077 1,313,404 1,178,225 2,370,413 4,577,975 Philadelphia 728,240 439,500 387, 780 664,404 532,669 408,246 568,286 Cleveland - 2,144,894 448,229 544,188 629,767 1,113,872 1,081,706 885,136 Richmond 2, 401,932 2,122, 726 3,043,174 2,098,344 2,362,587 2,332,746 2,532,312 Atlanta 1,627,618 1,020,676 1,029,477 1,819,328 1,086,816 1,903 002 906 214 Chicago - 2,117,189 ; 693,037 933,947 978,182 2,362,395 5, 730,842 3,740,995 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

St. Louis 978,898 559,396 1,627,630 974,319 597,503 887,880 2,634,442 Minneapolis... 101,065 85,504 12,469 28,819 1,390,649 65,149 311,428 Kansas City... 726,864 1,051,930 1,994,075 2,669,980 1,409,814 2,907,028 1,308,532 Dallas 1,509,376 1,241,637 858,797 757,274 844,205 798,975 692,576 San Francisco. 777,429 677,203 480,143 506,431 392,384 999,733 358,565 W Total.... 16,619,485 11,318,500 15,495,509 16,233,182 14,286,855 22,829,119 23,850,911 Percent. 4.3 2.9 4.0 4.2 3.7 5.9 6.18 g M Federal Reserve Bank. August. September. October. November. December. Total. Per cent. Boston $1,380,099 $3,426,776 $4,651,347 $8,726,269 $10,450, 741 $48, 748,713 12.6 New York 2,704,162 2,289,110 2,800,415 8,467,179 14,671,908 44,814,266 11.6 Philadelphia.. 208,923 701,013 695,106 6,373,917 6,520,128 18,228,212 4.7 Cleveland 1,117,042 3,732,433 5,623,856 5,246,435 8,438,106 31,005,664 8.0 O Richmond 2,294,025 4,999,705 3,673,499 4,988,766 7,516,022 40,365,868 10.4 UI Atlanta 1,467,872 3,488,150 2,995,011 3,513,553 2,953,793 23,811,510 6.2 o Chicago 1,716,573 8,796,866 14,475,872 19,243,671 24,833,663 85,623,232 22.1 St. Louis 1,186,864 4,596,101 2,175,644 3,120,522 5,864,154 25,203,353 6.5 Minneapolis 150,058 2,048,305 3,982,504 2,603,369 6,711,119 17,490,438 4.5 Kansas City 647,053 2,649,935 2,615,616 5,657,075 3,981,701 27,619,603 7.1 Dallas 384,850 2,295,979 1,303,652 713,695 693,886 12,094,902 3.1 San Francisco.. 549,570 1,020,132 2,194,037 2,879,245 1,722, 785 12,557,657 3.2 Total 13,807,091 40,044,505 47,186,559 71,533,696 94,358,006 387,563,418 Per cent. 3.6 10.3 12.2 18.5 24.3 100.0 > W ui Or CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 29.—Bills discounted for member banks during each month in 1919, distributed by maturities, and totals for 1919, 1918, and 1917—Continued. PAPER MATURING AFTER 30 DAYS BUT WITHIN 60 DAYS. Federal Reserve Bank. January. February. March. April. May. June. July. Boston $2,970,940 $1,592,828 $1,227,400 $10,659,562 $2,178,454 $10,186,948 $7,765,776 New York 2,257,823 8,800,937 9,038,657 2,386,016 6,881,053 15,027,809 15,918,988 d Philadelphia... 960,042 989,950 376,911 613,128 713,766 742,229 434,807 Cleveland 3,455,681 3,170,261 6,252,226 1,818,117 1,455,230 1,776,965 3,834,790 Richmond 3,678,795 3,076,399 4,445,243 2,656,456 4,181,574 3,599,810 3,507,292 3 Atlanta 4,468,260 2,313,666 2,020,293 1,921,353 2,104,681 3,318,934 1,760,843 Chicago 3,577,377 1,329,587 2,771,497 2,326,337 4,079,406 10,359,044 5,260,017 St. Louis 1,390,901 801,749 2,099,582 1,355,844 1,122,615 2,398,553 1,970,787 Minneapolis.... 225,909 130,484 68,854 367,445 355,533 90,145 1,077,406 Kansas City... 3,341], 659 2,710,888 5,560,392 4,702,539 3,505,382 5,256,395 3,082,777 Dallas 4,920,465 4,080,668 3,080,663 2,444,017 2,176,409 1,558,013 1,235,063 W San Francisco.. 1,774,711 1,309,320 1,594,910 1,634,744 1,439,511 1,021,519 1,791,097 Total 33,022,563 30,306,737 38,536,628 32,885,558 30,193,614 55,336,364 47,639,643 Per cent.. 4.2 3.8 4.9 4.2 3.8 7.0 6.0 Federal Reserve Bank. August. September. October. November. December. Total. Per cent. Boston $2,927,287 $5,852,537 $9,544,049 $17,962,540 $17,770,705 $90,639,026 11.4 New York... 4,396,247 5,151,462 7,592,438 39,225,540 23,069,837 139,746,807 17.7 Philadelphia. 466,695 766,374 1,879,378 9,227,538 15,312,829 32,483,647 4.1 Cleveland 1,879,218 3,925,592 6,452,956 8,649,464 10,654,436 53,324,936 6.7 w Richmond 4,348,580 5,827,650 3,645,788 2,819,501 9,272,018 51,059,106 6.5 o Atlanta 3,831,614 6,279,124 8,279,001 9,290,337 4,679,447 50,267,553 6.4 Chicago 7,230,744 21,831,576 31,524,480 25,938,586 52,363,232 168,591,883 21.3 St. Louis 2,114,860 6,540,559 3,017,904 4,787,584 9,914,246 37,515,184 4.7 Minneapolis.. 358,464 7,005,187 9,823,940 13,575,620 10,863,933 43,942,920 5.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Kansas City 2,825,792 9,301,589 6,056,407 9,678,368 8,472,976 64,495,164 8.2 D alias 1,709,359 4,617,276 4,397,527 1,570,153 1,076,702 32,866,315 4.1 San Francisco 1,805,711 1,788,269 4,322,909 4,520,694 3,379,533 26,382,928 3.3 Total... 33,894,571 78,887,195 96,536,777 147,245,925 166,829,894 791,315,469 Percent 4.3 9.9 12.2 18.6 21.1 100 PAPER MATURING AFTER 60 DAYS BUT WITHIN 90 DAYS. Fe&eral Reserve Bank. January. February. March. April. May. June. July. Boston , $54, 788,341 $30,315,141 $7,048,939 $53,946,779 $21,235,255 $25,023,505 $39,878,469 New York 65,744,893 28,679,130 7,842,205 30,170,926 32,332,152 33,070,504 59,935,257 9 Philadelphia.. 16,455,153 4,686,953 2,576,991 8,245,933 1,425,998 2,048,866 2,290,625 Cleveland 4232,889 2,187,744 1,608,741 1,138,660 3,086,761 2,405,899 2,042,544 O Richmond 7,341,516 5,352,147 4,415,977 8,098,993 5,140,977 5,509,624 8,032,475 Atlanta 7,897,279 2 570,483 3,079,190 4,303,870 3,530,008 3,159,608 3,945,029 Chicago 6,923,724 3,669,099 4,279,678 5,410,851 7,803,855 9,015,965 8,814,698 St. Louis 3,176,136 2,058,393 3,998,507 2,224,259 2,397,620 2,476,344 3,976,974 Minneapolis... 116,878 90,708 88,589 166,943 231,657 128,465 401,712 Kansas City.. 4,796,324 5,304,304 5,693,841 5,630,997 3,716,872 7,195,442 5,549,924 Dallas 6,397,090 4 415,744 3,296,062 4,066,996 2,671,215 1,666,860 2,881,922 San Francisco. 6,108,445 5,379,706 5,084,048 2,874,525 3,388,193 2,584,692 2,434,611 Total... 183,978,668 94,709,552 49,012,768 126,279,732 86,960,563 94,285,774 140,184,240 Per cent 10.6 5.4 2.8 7.3 5.0 5.4 8.1 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 29,—Bills discounted for member banks during each month in 1919', distributed by maturities, and totals for 1919,1918, and 1917—Continued. o to PAPER MATURING AFTER 60 DAYS, BUT WITHIN 90 DAYS—Continued. Federal Reserve Bank. August. September. October. November. December. Total. Per cent. Boston $23,201,630 $20,921,341 $35,207,810 $47,417,477 $45,336,452 $404,321,139 23.3 New York 38,013,193 27,337,722 22,959,777 96,995,285 52,051,477 495,132,521 28.5 Philadelphia.. 1,610,519 740,670 6,544,409 58,672,986 19,123,633 124,422,736 7.1 Cleveland 3,873,096 3,633,588 6,101,096 12,017,208 16,559,789 58,888,015 3.4 Richmond 6,742,023 5,994,198 7,041,742 6,613,393 8,463,033 T78,746,098 4.5 Atlanta 4,177,461 6,889,027 10,665,295 13,830,711 6,895,534 JO, 943,495 4.1 Chicago 9,980,359 25,142,848 20,494,312 47,562,740 68,069,137 217,167,266 12.5 St. Louis 4,709,705 10,238,945 8,980,617 9,116,512 10,733,094 64,087,106 3.7 o Minneapolis-.. 227,696 2,151,011 8,994,455 6,954,259 20,606,340 40,158,713 2.3 Kansas City... 3,478,511 6,547,116 8,868,547 12,461,958 13,567,264 82,811,100 4.8 Dallas 2,248,984 3,889,188 4,692,743 1,846,114 2,418,066 40,490,984 2.3 San Francisco. 4,218,177 5,038,392 6,871,693 9,637,718 7,130,299 60,750,499 3,5 Total.... 102,481,354 118,524,046 147,422,496 323,126,361 270,954,118 1,737,919,672 Per cent. 5.9 6.8 8.5 18.6 15.8 100.0 AGRICULTURAL AND LIVE-STOCK PAPER MATURING AFTER 90 DAYS. Federal Reserve Bank. January. February. March. April. May. June. July. Boston $318 $600 $1,409 $459 $3,737 New York.... 1,326 17,087 $20,896 10,457 1,600 o Philadelphia- 1,500 $5,075 Cleveland 71,439 28,783 14,313 5,294 3,972 Richmond-.-. 67,729 35,953 178,387 277,966 397,366 335,623 229,909 Atlanta 98,494 111, 993 301,280 386,203 678,226 875,419 1,014,345 Chicago 780,222 568,258 1,022,100 998,589 1,645,288 847,746 553,005 St. Louis 45,581 53,611 156,681 54,442 197,686 245,601 138,191 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minneapolis... 318,751 152,084 111,607 318,940 1,730,061 884,480 417,155 Kansas City... 4,602,020 1,886,268 3,158,890 5,968,473 6,105,834 8,942,870 3,575,044 Dallas 4,061,704 2,703,593 2,258,129 3,188,842 3,577,635 2,921,230 2,064,050 San Francisco. 1,487,081 1,096,070 963,148 1,407,891 2,092,902 1,929,921 1,344,063 X Total 11,464,726 6,612,895 8,239,348 12,639,627 16,460,207 16,999,100 9,345,071 W Percent. 9.1 5.3 10.0 13.1 13.6 7.5 M w 3 Federal Reserve Bank. August. September. October. November. December. Total. Per cent. Boston $5,889 $618 $43,492 $2,977 $14,078 $73,577 0.1 New York 1,500 929 15,265 77,149 .1 Philadelphia... 1,000 277 4,000 11,852 9 Cleveland 2,472 16,905 19,343 129,606 52,359 344,486 Richmond 82,986 38,669 7,554 11,583 25,323 1,689,048 1.3 O Atlanta 313,340 166,982 54,478 44,011 20,021 4,064,792 3.2 Chicago 838,712 1,512,678 3,266,634 3,026,490 1,986,967 17,046,689 13.6 St. Louis 93,678 73,208 27,213 74,886 49,489 1,210,267 1.0 Minneapolis 123,973 292,157 884,670 1,679,156 1,515,037 8,428,071 6.7 Kansas City.... 958,994 1,827,582 3,869,562 5,142,978 6,204,679 52,243,184 41.7 g Dallas 987,057 1,096,761 859,003 934,586 955,405 25,607,995 20.4 San Francisco.. 809,252 417,133 612,016 791,012 1,537,842 14,488,331 11.6 Total 4,216,353 5,443,693 9,645,742 11,838,214 12,380,465 125,285,441 Percent.. 3.4 4.3 7.7 9.5 9.9 100.0 g CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 29.—Bills discounted for member banks during each month in 1919, distributed by maturities, and totals for 1919, 1918', and 1917—Continued. TOTAL BILLS DISCOUNTED. Federal Reserve Bank. January. February. March. April. May. June. July. August. September. Boston $370,959,398 $355,740,459 $331,408,740 $505,241,468 $443,930,167 $363,010,170 $406,060,347 $245,378,612 $314,051,684 New York 3,468,059,283 2,667,770,967 2,631,731,390 2,678,055,774 4,067,069,831 3,102,797,327 3,989,474,707 3,528,702,368 3,495,701,094 Philadelphia 683,722,748 640,608,351 832,991,680 916,038,257 945,479,028 1,079,576,619 1,032,074,221 922,775,286 1,003,715,978 Cleveland 203,974,133 197,596,593 249,341,010 224,701,226 239,824,981 221,758,343 285,964,302 273,718,342 300,427,161 Richmond 283,356,053 276,675,719 335,314,546 363,264,872 368,133,803 398,298,284 419,908,215 382,999,948 344,921,874 Atlanta 169,835,236 108,716,487 144,222,477 151,937,979 165,527,564 161,886,830 178,184,975 181,645,613 212,788,726 Chicago 308,946,073 263,047,705 341,888,147 350,861,112 412,850,676 394,470,822 363,654,559 377,616,768 378,009,982 St. Louis 139,201,035 115,577,865 185,126,941 197,127,063 . 205,165,544 171,043,610 146,827,157 152,420,283 208,364,700 O Minneapolis 17,317,075 12,489,980 20,981,095 72,958,545 81,152,465 37,861,864 28,553,476 38,192,798 66,850,995 Kansas City 96,339,672 87,500,062 124,905,789 144,148,461 147,379,968 137,089,762 109,922,797 104,078,485 139,961,557 H Dallas 90,077,895 92,411,695 103,845,502 117,182,855 129,872,524 112,513,122 99,585,777 94,639,852 117,312,012 San Francisco 162,593,664 162,799,631 171,806,857 179,884,028 179,446,505 148,604,777 123,224,540 131,493,931 144,049,494 1 Total—1919.... 5,994,382,265 4,980,935,514 5,473,564,174 5,901,401,640 7,385,833,056 6,328,911,530 7,183,435,073 6,433,662,286 6,726,155,257 1918.... 868,229,619 762,444,698 754,933,533 2,172,580,139 2,993,019,346 3,137,225,829 3,343,458,151 3,762,259,098 4,685,139,704 tei 1917.... 18,326,286 22,408,604 26,788,982 50,055,801 91,413,473 750,269,838 460,733,354 220,939,974 548,164,104 Percent—1919 7.6 6.3 6.9 7.4 9.3 8.0 9.1 8.1 8.5 ^1918 2.2 1.9 1.9 5.5 7.5 7.9 8.4 9.4 11.8 1917 .2 .3 1.0 8.4 5.1 2.5 6.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Per cent, Per cent, Per cent, Federal Reserve Bank. October. November. December. Total, 1919. Total, 1918. Total, 1917. 1919. 1918. 1917. Boston . $385,816,548 $426,922,264 $526,878,389 $4,675,398,246 $1,760,284,933 $350,919,310 5.9 4.5 3.9 New York 4,472,425,044 4,466,207,075 3,881,496,274 42,449,491,134 24,535,538,457 6,511,274,920 53.6 61.8 72.6 w s Philadelphia 1,151,792,034 683,636,792 844,024,277 10,736,435,271 1,833,598,274 223,416,008 13.6 4.6 2.5 Cleveland 309,808,833 292,186,678 326,554,767 3,125,856,369 1,386,117,996 211,176,106 3.9 3.5 2.3 H Richmond... 319,036,073 264,080,662 374,952,860 4,130,942,909 2,159,845,371 401,220,685 5.2 5.4 4.4 T Atlanta -. 205,850,022 174,033,036 151,148,637 2,005,777,582 930,130,087 95,114,744 2.5 2.3 1.1 Chicago 411,231,014 448,183,255 505,552,032 4,556,312,145 3,265,850,010 521,872,103 5.8 8.2 6.0 St. Louis 220,286,020 180,110,764 179,379,614 2,100,630,596 1,085,137,254 181,117,652 2.7 2.7 2.0 Minneapolis . 100,613,171 88,805,613 95,743,302 661,520,379 433,791,800 80,154,716 .8 1.1 .9 Kansas City 171,179,044 145,934,891 147,156,135 1,555,596,623 833,520,562 237,690,768 2.0 2.1 2.6 3 Dallas. . . 137,231,487 70,671,433 59,601,991 1,224,946,145 587,677,766 52,052,600 1.5 1.4 .6 San Francisco.. . . 175,048,679 173,725,912 198,384,313 1,951,062,331 941,441,337 102,981,206 2.5 2.4 1.1 o Ul Total—1919 . .. 8 060,317,969 7 414,498 375 7,290,872,591 79,173,969,730 o 1918 5,903,962,877 5,154,597,322 6,215,083,531 39,752,933,847 1917 2,681,165,854 3,206,486,771 937,433,413 8,968,990,818 Per cent—1919 10.2 9.4 9.2 100 1918 14.9 13.0 15.6 100 1917. 29.9 35.7 9.9 100 Ul 3 w Ul o\ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 30,—Bills discounted by each Federal Reserve Bank, distributed by States; also number of banks in each State and number accommodated through the discount of paper during 1919. Number Number mem of ber N a u cc m o b m e - r Total amount mem of ber N ac u c m o b m e - r Total amount States. S i b n ta a e t n e a k c o s h n m d o 1 u 9 d r 1 a in 9 te . g d di o s f c o p u a n p t e e r d. States. S i b n t a a e t n e a k c o s h n m d o 1 u 9 d r 1 i a 9 n t . e g d dis o c f o p u a n p t e e r d. Dec. 31, Dec. 31. 1919. 1919. Maine 65 42 $77,747,271 Michigan: New Hampshire - 55 46 99,425,477 DistrictNo.7 215 161 $1,216,159,567 48 41 53,314,620 District No. 9 41 12 6,908,664 187 165 4,108,983,608 Rhode Island 20 14 133,014,312 Total 256 173 1,223,068,231 Wisconsin: Connecticut: DistrictNo. 7 129 88 263,942,845 District No. 1 57 40 202,912,958 Dfsjf-n'pt No Q 53 20 5,557,230 W DistrictNo 2 15 12 110,454,312 Total 182 108 269,500,075 Total 72 52 313,367,270 434 341 547,590,970 New York 574 419 41,223,866,583 Illinois: New Jersey: DistrictNo. 7 380 208 2,254,681,713 Disfrirt No 2 164 115 1,115,170,239 DistrictNo. 8 169 93 71,573,791 81 63 212,880,702 Total 549 301 2,326,255,504 i Tnfal 245 178 1,328,050,941 Indiana: TH<a+rir>f Wn 7 216 153 273,937,050 Delaware 23 14 41,369,786 DistrictNo. 8 63 23 45,962,325 w o Pennsylvania: > Total 279 176 319,899,375 District No. 3 574 417 10,482,184,783 Missouri: DistrictNo 4 314 144 1,712,941,061 DistrictNo. 8 100 65 1,100,474,774 Total 888 561 12,195,125,844 District No. 10 61 35 632,952,518 Ohio 439 226 1,324,416,220 Total...,..,..., , „., 161 100 1,733,427,292 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Kentucky: Arkansas 101 65 152,289,846 District No. 4. 29 59,145,705 Minnesota 335 174 570,419,991 District No. 8. 461,520,385 North Dakota.. 179 80 18,411,910 South Dakota.. 144 88 45,963,050 Total. 141 65 520,666,090 Montana 168 101 14,259,534 X West Virginia: Wyoming 46 26 5,042,339 s District No. 4. 16 29,353,383 Nebraska 207 173 436,358,614 District No. 5. 110 46,837,583 Colorado 135 79 89,303,884 Kansas 255 124 98,168,831 Total. 126 56 76,190,966 Oklahoma: District of Columbia. 15 10 105,260,815 District No. 10. 320 235 $286,724,555 Maryland 102 68 1,000,475,362 District No. 11. 36 35 19,835,586 £ Virginia 170 124 2,195,062,920 Total 356 270 306,560,141 H North Carolina 92 74 356,205,945 South Carolina 92 427,100,284 New Mexico: O District No. 10. 7,045,882 Tennessee: District No. 11. 17,511,220 District No. 6 578,661,484 o District No. 8.... 256,578,507 Total. 54 42 24,557,102 Total. 108 70 835,239,991 | Texas. 655 518 1,144,804,118 Georgia ; : 1 • 20 -•• 119 568,548,042 |Arizona: Florida 61 46 106,732,880 DistrictNo.il. 5,370,670 Alabama 109 167,698,880 District No. 12. 6,029,421 Mississippi: Total. 22 11,400,091 District No. 6. 32,536,019 District No. 8. 12,230,968 | Utah 54 42 334,276,321 Nevada 10 1 20,000 Total 25 44,766,987 California 311 151 1,034,429,134 w Louisiana: Oregon 101 50 74,143,102 District No. 6.. 551,600,277 | Idaho 111 86 142,506,562 W DistrictNo.il. 15 37,424,551 Washington.. 123 82 359,657,791 Ul Alaska 1 Total. 47 35 589,024,828 Grand total. 9,066 5,993 79,173,969,730 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No, 31.—Member banks' collateral notes, also customers' paper secured by Government war obligations (war paper), discounted by each Federal Reserve Bank, by months, during the calendar year 1919, and totals for 1918, OO January. February. March. April. May. Federal Reserve Bank. Members' Customers' Members' Customers' Members' Customers' Members' Customers' Members' Customers' collateral notes. paper. collateral notes. paper. collateral notes. paper. collateral notes. paper. collateral notes. paper. Boston . . $305,441,850 $57,552,105 $317,960,300 $31,255,392 $317,994,060 $9,613,744 $432,594,700 $68,444,366 $414,642,050 $22,943,483 New York. „ 3,303,157,768 65,434,147 2,518,274,955 40,627,613 2,539,834,662 23,259,904 2,581,314,859 39,543,639 3,945,329,542 43,828,151 Philadelphia 617,370,301 35,788,437 596,245,257 20,450,724 788,215,567 18,750,461 860,065,571 28,573,304 901,388,419 18,830,235 o Cleveland 183,103,000 10,877,844 181,619,800 7,484,120 235,031,600 8,721,389 208,522,500 2,639,169 225,789,200 4,992,978 w Richmond 266,933,014 7,063,780 264,232,811 5,858,837 318,440,638 4,286,367 345,869,655 7,712,417 353,649,227 5,434,110 H Atlanta 135,331,686 5,488,116 99,313,600 1,138,803 130,975,650 920,623 137,352,350 3,314,616 151,400,675 2,176,444 o Chicago 276,499,667 5,651,524 246,929,273 2,782,685 323,238,826 3,551,591 328,750,576 2,594,409 393,232,013 2,873,184 St. Louis 128,158,850 1,556,204 107,401,737 966,087 168,920,450 2,857,375 187,029,473 656,227 192,378,989 1,309,347 Minneapolis 16,478,140 6,418 11,986,700 42,031 20,693,700 1,125 62,047,950 1,280 70,593,800 241,079 Kansas City 69,864,098 315,052 67,657,823 1,168,513 100,485,139 897,852 116,228,588 1,470,742 126,139,850 1,112,213 Dallas 70,948,810 812,410 79,109,964 533,504 93,877,680 339,594 106,263,330 605,811 119,943,750 377,088 San Francisco 148,384,462 1,685,136 150,389,070 . 2,199,766 158,511,026 2,121,314 170,402,275 1,812,714 168,701,200 2,059,524 Total—1919 5,521,671,646 192,231,173 4,641,121,290 114,508,075 5,196,218,998 75,321,339 5,536,441,827 157,368,694 7,063,188,715 106,177,836 1918 333,892,976 44,614,222 261,755,660 138,280,849 251,445,794 63,669,906 1,768,938,819 37,730,096 2,431,571,106 91,934,430 June. July. August. September. October. Federal Reserve Bank. Members' Customers' Members' Customers' Members' Customers' Members' Customers' Members' Customers' collateral notes. paper. collateral notes. paper. collateral notes. paper. collateral notes. paper. collateral notes. paper. o Boston $315,892,288 $34,540,365 $346,164,950 $50,728,823 $210,973,650 $24,652,827 $270,424,246 $32,126,812 $320,011,100 $48,616,479 New York 2,942,788,252 54,166,545 3,700,706,910 105,340,085 3,375,900,068 50,247,623 3,282,979,949 41,329,289 4,147,487,334 38,337,625 Philadelphia 1,015,119,754 26,915,972 958,011,339 28,931,497 855,176,865 26,623,749 928,134,397 21,821,228 1,045,504,216 34,599,579 Cleveland 207,002,150 4,417,749 258,371,450 9,589,447 248,007,050 9,455,438 267,276,380 7,232,883 257,958,715 15,914,237 Richmond 378,907,595 5,745,900 399,873,756 7,450,766 364,584,337 7,843,623 321,730,670 4,357,478 300,113,720 7,417,856 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Atlanta 143,179,659 2,036,732 163,735,433 2,905,538 168,999,124 2,177,602 182,040,760 3,137,658 160,082,789 3,639,097 Chicago 363,861,538 2,178,555 336,348,458 2,395,150 348,490,000 4,220,208 302,664,200 4,321,217 314,164,100 5,997,954 St. Louis 156,768,528 1,439,360 131,851,909 3,947,165 139,488,089 3,187,891 179,143,487 3,356,958 191,134,029 2,516,477 Minneapolis 35,443,125 . 4,670 26,323,275 75,572 36,971,203 4,958 54,050,800 109,588 71,598,000 1,724,754 Kansas City 101,286,495 1,326,633 86,499,064 1,832,472 87,107,211 592,671 98,807,348 2,231,991 113,284,881 2,663,660 Dallas 104,749,760 226,336 91,245,130 258,473 87,873,553 218,223 103,036,973 553,820 124,073,785 590,755 San Francisco 136,795,402 1,484,346 110,906,890 1,494,084 115,991,135 1,995,372 125,533,090 1,900,002 139,306,400 2,204,367 Total—1919. 5,901,794,546 134,483,163 6,610,038,564 214,949,072 6,039,562,285 131,220,185 6,115,822,300 122,478,924 7,184,719,069 164,222,840 1918 2,574,561,810 46,569,980 2,391,811,025 77,574,241 3,007,485,670 119,847,633 4,021,888,543 56,008,637 5,129,044,297 179,237,274 November. December. Total. Grand total. Federal Reserve Bank. Members' Customers' Members' Customers' Members' Customers' collateral notes. paper. co llateral no tes. paper. collateral notes. paper. 1919 1918 o GO Boston $340,468,760 $37,427,227 $445,343,550 $30,340,410 $4,037,911,504 $448,242,033 $4,486,153,537 $1,550,310,782 o New York 4,077,121,327 156,816,670 3,321,651,381 58,414,777 39,736,547,007 717,346,068 40,453,893,075 22,254,444,699 fed Philadelphia 550,862,817 91,297,964 708,969,108 32,334,764 9,825,063,611 384,917,914 10,209,981,525 1,504,636,670 Cleveland 240,665,940 8,346,251 261,223,690 9,197,134 2,774,571,475 98,868,639 2,873,440,114 1,060,687,150 Richmond 245,872,700 7,656,906 345,054,060 6,510,418 3,905,262,183 77,338,458 3,982,600,641 1,625,616,690 Atlanta 135,408,300 3,043,184 128,959,975 2,899,987 1,736,780,001 32,878,400 1,769,658,401 631,032,371 Chicago 330,954,550 8,645,278 340,611,100 4,089,135 3,905,744,301 49,300,890 3,955,045,191 2,139,330,599 St. Louis 149,007,353 4,963,899 130,880,580 6,325,716 1,862,163,474 33,082,706 1,895,246,180 777,982,270 Minneapolis 62,095,885 889,773 49,327,350 1,269,847 517,609,928 4,371,095 521,981,023 242,826,420 Kansas City 99,889,664 3,400,507 101,055,325 2,943,265 1,168,305,486 19,955,571 1,188,261,057 475,659,106 Dallas 65,087,719 130,339 53,925,419 277,425 1,100,135,873 4,923,778 1,105,059,651 447, 833,088 San Francisco 136,547,100 4,941,644 158,271,500 2,321,457 1,719,739,550 26,219,726 1,745,959,276 679,720,046 Total—1919. 6,433,982,115 327,559,642 6,045,273,038 156,924,335 72,289,834,393 1,897,445,278 74,187,279,671 1918. 4,350,206,812 251,041,418 5,619,803,199 141,165,494 32,142,405,711 1,247,674,180 33,390,079,891 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 32.—Total amounts of member banks' collateral notes discounted by each Federal Reserve Bank by months, during the calendar year 1919 and totals for 1918. Federal Keserve Bank. January. February. March. April. May. June. July. Boston $305,456,850 $318, 180,300 $318,157,060 $433,310,700 $416,101,750 $318,016,288 $347,476,450 New York 3,303,157,768 | 2,518,274,955 2,539,834,662 2,581;314,859 3,945,329,542 2,942,788,252 3,700,706,910 Philadelphia 617,370,301 596,245,257 788,215,567 860,165,571 901,433,419 1,015,182,754 958,324,339 Cleveland 183,103,000 181,619,800 235,031,600 208,867,500 225,939,200 207,028,350 258,371,450 Richmond 267,642,514 264, 240,311 320,365,638 347,183,655 354,590,227 381,802,095 402,233,856 Atlanta , 136,094,486 99,378,600 131,007,650 137,412,350 152,142,714 144,401,272 165,364,156 Chicago 277,595,494 248, 778,943 326,281,497 332,077,658 393,388,763 365,276,038 340,448,458 St. Louis 128,783,850 107,401,737 169,020,450 187,459,473 192,563,989 156,953,528 132,051,909 Minneapolis 16,521,340 11,991,700 20,693,700 72,047,950 77,350,800 36,643,125 26,323,275 Kansas City 82,266,225 76,185,408 108,234,293 124,433,372 132,430,812 111,909,501 96,031,629 Dallas 72,763,360 79,772,964 94,206,180 106,658,330 120,447,836 105,270,903 92,562,267 w San Francisco.... 148,390,462 150, 389,070 158,549,026 170,,1'567,275 169,207,450 136,795,402 111,036,890 fed Total—1919. 5,539,145,650 4,652,459,045 5,209,597,323 5,561,498,693 7,080,926,502 5,922,067,508 6,630,931,589 1918. 481,942,377 306,662,397 310,478,386 1,799,119,597 2,502,693,369 2,660,201,285 2,554,685,811 I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Bank. August. September. October. November. December. Total, 1919. Total, 1918. !~,Boston $211,978,650 $271,217,246 $321,659,100 $341,724,844 $445,704,705 $4,048,983,943 $1,346,143,638 §§NewYork 3,375,900,068 3,282,979,949 4,147,487,334 4,077,121,327 3,321,651,381 39,736,547,007 21,810,005,187 ooPhiladelphia 855,179,865 928,159,897 1,045,507,216 550,865,817 708,969,108 9,825,619,111 1,329,253,568 w I Cleveland 248,373,550 267,498,380 258,145,715 240,665,940 261,436,690 2,776,081,175 993,593,567 O Richmond 367,508,837 325,449,670 302,563,220 246,322,700 346,511,607 3,926,414,330 1,538,747,984 3 Atlanta 169,635,483 184,779,260 161,227,059 136, 818,300 131,734,975 1,749,996,305 629,504,816 I Chicago 352,905,000 303,071,310 315,742,761 332,257,730 340,937,100 3,928,760,752 2,569,555,091 ^St. Louis 139,782,589 179,309,487 192,024,029 149,024,353 131,830,580 1,866,205,974 765,663,931 Minneapolis 37,288,203 54,165,800 73,551,148 62,391,415 50,224,094 539,192,550 276,916,606 Kansas City 95,813,154 118,466,305 147,196,319 110,245,857 113,720,115 1,316,932,990 619,134,694 Dallas 89,184,710 104,993,473 125,827,785 65,456,369 54,286,619 1,111,430,796 459,888,553 San Francisco.... 116,314,135 125,533,090 139,436,400 136,762,100 158,861,500 1,721,842,800 669,380,595 o w Total-1919 6,059,864,244 6,145,623,867 7,230,368,086 6,449,656,752 6,065,868,474 72,548,007,733 1918, 3,063,893,999 4,058,567,522 5,182,814,264 4,415,279,882 5,671,449,341 33,007,788,230 o 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 33,—Trade acceptances discounted by each Federal Reserve Bank, by months, during the calendar year 1919, and totals for 1918 and 1917, 5 to Federal Reserve Bank. January. February. March. April. May. June. July. August. Boston $1,470,858 $1,211,748 $510,189 $459,033 $106,740 $358,275 $305,814 $128,777 New York 3,189,254 3,907,288 3,597,027 3,944,232 3,766,408 3,196,586 4,101,953 2,747,381 Philadelphia 182,126 113,663 396,659 197,797 157,829 218,366 139,625 191,924 Cleveland 1,129,610 693,731 427,305 603,332 391,912 779,365 1,068,762 944,905 Richmond 721,168 568,851 850,340 632,700 850,077 941,394 540,651 292,559 Atlanta 987,686 371,794 606,231 438,940 526,196 455,288 310,647 335,619 Chicago 612,710 237,317 267,882 84,140 136,263 164,616 215,162 St. Louis 558,573 370,525 335,582 510,293 367,761 258,794 292,124 416,385 Minneapolis 6,107 9,631 18,376 29,097 13,255 10,796 7,500 6,772 Kansas City 830,397 540,233 699,096 734,594 501,236 1,484,710 864,408 509,567 Dallas 410,718 144,898 109,681 72,261 108,217 28,047 49,974 3,896 San Francisco.... 805,006 709,758 743,033 364,949 135,441 49,895 516,531 634,464 Total— 919 10,904,213 8,879,437 8,561,401 8,071,368 7,061,335 7,946,132 8,504,928 6,427,411 1918. 13,998,454 19,217,453 16,230,557 11,120,947 13,165,738 14,810,953 13,822,069 12,762,403 1 • 1917. 574,464 856,078 762,820 678,022 1,767,702 2,521,374 1,077,607 1,6 I W o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Bank. September. October. November. December. Total, 1919.1 Total, 1918. Total, 1917 Boston $348,356 $386,620 $2,237,225 $3,297,357 $10,820,992 $10,287,131 $6,115,127 New York 3,567,082 7,220,020 8,136,966 57,133,089 70,676,912 6,863,800 Philadelphia 270,787 381,084 959,873 543,565 3,753,298 5,650,053 726,078 w Cleveland 1,495,015 1,572,906 2,031,238 2,953,262 14,091,343 24,894,291 4,400,590 w Richmond 466,194 670,753 536,361 2,011,330 9,082,378 13,389,109 3,160,449 II Atlanta 522,391 1,968,217 1,017,726 693,112 8,233,847 11,697,196 4,562,494 Chicago 484,222 468,857 2,268,244 1,334,383 6,580,735 9,033,011 429,845 St.Louis 674,714 1,330,184 1,168,770 1,662,475 7,946,180 15,681,201 3,114,503 Minneapolis 99,953 134,066 78,422 151,139 565,114 799,371 363,673 Kansas City 384,550 479,476 69,350 388,698 7,486,315 10,400,938 2,646,322 Dallas 58,465 120,142 435,844 344,859 1,887,002 2,056,758 177,953 San Francisco 2,236,593 1,331,959 1,361,975 1,950,176 10,839,780 12,806,608 5,210,298 O Total—1919, 10,608,322 16,064,284 21,923,920 23,467,322 U38,420,073 Ul 1918 20,917,189 23,519,494 16,190,679 11,616,643 187,372,579 o 1917, 1,125,834 4,354,747 6,959,770 15,424,651 37,771,132 I i Includes foreign trade acceptances as follows: Boston, $2,483,516; New York, $15,936,065; Atlanta, $50,547; Dallas, $74,052; San Francisco, $304,125. l 6 w Ul o? Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 34.— Total bills discounted, by months, during the calendar year 1919, distributed by classes of member banks. January. February. March. April. May. Federal Reserve Bank. N b a a t n io k n s a . l S c a t o a n m t d e p t b a r a n u n i s e k t s s . N b a a t n io k n s a . l S c a t o a n m t d e p t b a r n a u n i s e k t s s . N b a a t n io k n s a . l S c a t o a n m t d e p t b a r n a u i n s e k t s s . N b a a t n io k n s a . l S c a t o a n m t d e p t b a r a n u n i s e k t s s . N b a a t n io k n s a . l S c a t o a n m t d e p t b a r a n u n i s e k t s s . Boston $313,291,557 $57,667,841 $303,707,840 $52,032,619 $270,959,061 $60,449,679 $438,719,759 $66,521,709 $390,391,994 $53,538,173 New York... 2,734,628,978 733,430,305 2,040,220,299 627,550,668 1,933,364,120 698,367,270 1,997,908,420 680,147,354 3,320,699,274 746,370,557 Philadelphia. 558,879,080 124,843,668 506,458,644 134,149,707 676,446,144 156,545,536 744,544,451 171,493,806 806,526,373 138,952,655 Cleveland 14S,943,471 55,030,662 127,971,485 69,625,108 159,198,612 90,142,398 170,451,215 54,250,011 160,635,880 79,189,101 Richmond 265,617,894 17,738,159 257,722,555 18,953,164 311,669,971 23,644,575 334,403,771 28,861,101 337,548,680 30,585,123 Atlanta 122,481,932 47,353,304 79,466,488 29,249,999 104,332,563 39,889,914 112,047,000 39,890,979 126,758,427 38,769,137 o Chicago 184,367,373 124,578,700 168,850,971 94,196,734 241,652,703 100,235,444 238,095,359 112,765,753 261,781,704 151,068,972 St. Louis 59,127,506 80,073,529 50,639,332 64,938,533 96,373,624 88,753,317 99,960,074 97,166,989 100,927,954 104,237,590 Minneapolis.. 15,405,960 1,911,115 11,217,266 1,272,714 19,201,054 1,780,041 69,148,620 3,809,925 75,110,846 6,041,619 Kansas City.. 91,634,298 4,705,374 84,398,282 3,101,780 117,501,381 7,404,408 134,282,116 9,866,345 140,649,340 6,730,628 i Dallas 84,045,692 6,032,203 91,132,625 6,332,471 95,927,759 7,917,743 107,191,237 9,991,618 112,984,431 11,834,692 San Francisco. 148,096,302 14,497,362 149,314,292 13,485,339 153,862,942 17,943,915 160,349,731 19,534,297 153,582,928 25,863,577 Total... 4,726,520,043 1,267,862,222 3,871,100,079 1,114,888,836 4,180,489,934 1,293,074,240 4,607,101,753 1,294,299,887 5,987,597,831 1,393,181,824 June. July. August. September. October. Federal Reserve Bank. N b a a t n io k n s a . l S c a t o a n m t d e p t b a r a n u n i s e k t s s . N b a a t n io k n s a . l S c a t o a n m t d e p t b a r n a u n i s e k t s s . N b a a t n io k n s a . l S c a t o a n m t d e p t b a r n a u n i s e k t s s . N b a a t n io k n s a . l S c a t o a n m t d e p t b a r a n u n i s e k t s s . N b a a t n io k n s a . l S c a o ta n m t d e p t b a r n a u i n s e k t s s . W o Boston $315,844,179 $47,165,991 $349,556,293 $53,504,054 $201,668,015 $43,710,597 $275,609,012 $38,442,672 $338,861,090 $46,955,458 New York.. 2,548,527,973 554,269,354 3,201,056,209 788,418,498 2,947,565,691 581,136,677 2,795,478,550 700,222,544 3,671,788,669 800,636,375 Philadelphia 900,679,601 178,897,018 833,404,090 198,670,131 767,442,786 155,332,500 847,442,670 156,273,308 1,003,293,351 Cleveland... 165,913,775 55,844,568 180,694,630 105,269,672 185,153,800 88,564,542 222,008,834 78,418,327 229,696,205 80,112,628 Richmond.. 366,266,960 32,031,324 384,460,508 35,447,707 351,695,051 31,304,897 320,346,694 24,575,180 297,868,455 21,167,618 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Atlanta 121,497,546 40,389,284 142,547,831 35,637,144 149,808,888 31,836,725 165,675,611 47,113,115 132,588,683 73,261,339 Chicago 220,092,173 174,378,649 184,972,455 178,682,104 198,498,456 179,118,312 245,958.856 132,051,126 287,164,554 124,066,460 St. Louis 79,204,476 91,839,134 75,028,109 71,799,048 73,439,168 78,981,115 98,214,274 110,150,426 119,537,478 100,748,542 Minneapolis 34,065,169 3,796,695 26,019,482 2,533,994 34,166,400 4,026,398 62,241,616 4,609,379 92,896,788 7,716,383 Kansas City 132,622,673 4,467,089 102,571,576 7,351,221 101,653,201 2,425,284 132,577,844 7,383,713 159,767,995 11,411,049 X Dallas 103,394,959 9,118,163 88,584,927 11,000,850 85,035,122 9,604,730 107,051,634 10,260,378 127,917,001 9,314,486 H San Francisco 123,194,857 25,409,920 103,850,671 19,373,869 115,031,699 16,462,232 124,591,337 19, 458,157 149,737,454 25,311,225 3 Total 5,111,304,341 1,217,607,189 5,672,746,781 1,510,688,292 5,211,158,277 1,222,504,009 5,397,196,932 1,328,958,325 6,611,117,723 1,449,200,246 November. December. Total. Federal Reserve Bank. State banks State banks State banks All member National banks. and trust National banks. and trust National banks. and trust banks. H companies. companies. companies. O Ul Boston $364,692,049 $62,230,215 $440,188,026 $86,690,363 $4,003,488,875 $671,909,371 $4,675,398,246 o New York 3,758,956,649 707,250,426 3,181,117,946 700,378,328 34,131,312,778 8,318,178,356 42,449,491,134 4 Philadelphia... 607,829,457 75,807,335 768,450,673 75,573,604 9,021,397,320 1,715,037,951 10,736,435,271 5 Cleveland 205,906,474 86,280,204 212,705,507 113,849,260 2,169,279,888 956,576,481 3,125,856,369 Richmond 242,049,476 22,031,186 349,107,998 25,844,862 3,818,758,013 312,184,896 4,130,942,909 Atlanta 115,989,224 58,043,812 105,582,800 -45,565,837 1,478,776,993 527,000,589 2,005,777,582 Chicago 327,412,209 120,771,046 368,611,413 136,940,619 2,927,458,226 1,628,853,919 4,556,312,145 St. Louis 103,891,199 76,219,565 109,216,637 70,162,977 1,065,559,831 1,035,070,765 2,100,630,596 Minneapolis... 84,049,670 4,755,943 91,257,292 4,486,010 614,780,163 46,740,216 661,520,379 Ul Kansas City... 138,149,854 7,785,037 135,770,313 11,385,822 1,471,578,873 84,017,750 1,555,596,623 Dallas 65,097,987 5,573,446 54,979,342 4,622,649 1,123,342,716 101,603,429 1,224,946,145 San Francisco. 140,608,384 33,117,528 170,718,320 27,665,993 1,692,938,917 258,123,414 1,951,062,331 Total.... 6,154,632,632 1,259,865,743 5,987,706,267 1,303,166,324 63,518,672,593 15,655,297,137 79,173,969,730 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 35.—Average rate (per cent) charged on all paper discounted by each Federal Reserve Bank, by Months, during the calendar year 1919. Federal Reserve Bank. January. ru F a e r b y - . March. April. May. June. July. August. Se b p e te r m . - October. No b v e e r m . - De b c e e r m . - Av 1 e 91 ra 9 g . e, Av 1 e 9 r 1 a 8 g . e, Boston 4.05 4.13 4.09 4.18 4.14 4.17 4.20 4.18 4.18 4.22 4.56 4.64 4.25 4.17 New York 4.07 4.03 4.02 4.03 4.03 4.04 4.06 4.05 4.04 4.03 4.49 4.63 4.14 4.06 Philadelphia 4.12 4.08 4.07 4.09 4.07 4.07 4.01 4.01 4.01 4.02 4.34 4.61 4.13 4.09 Cleveland 4.19 4.13 4.13 4.11 4.13 4.13 4.08 4.08 4.12 4.14 4.55 4.68 4.24 4.21 Richmond 4.28 4.28 4.31 4.44 4.25 4.26 4.20 4.20 4.31 4.28 4.46 4.64 4.32 4.38 Atlanta 4.21 4.18 4.18 4.16 4.19 4.22 4.13 4.13 4.19 4.24 4.51 4.61 4.25 4.06 Chicago 4.17 4.14 4.15 4.17 4.21 4.26 4.17 4.18 4.36 4.40 4.61 4.69 4.35 4.24 St. Louis 4.17 4.15 4.18 4.13 4.15 4.20 4.15 4.16 4.29 4.22 4.52 4.64 4.26 4.27 Minneapolis 4.39 4.28 4.19 4.22 4.41 4.40 4.29 4.10 4.38 4.50 4.74 4.88 4.54 4.72 Kansas City 4.82 4.68 4.72 4.77 4.66 4.82 4.57 4.40 4.55 4.60 4.91 5.02 4.74 4.80 Dallas 4.65 4.52 4.42 4.47 4.46 4.45 4.38 4.30 4.36 4.34 4.55 4.80 4.46 4.55 W San Francisco 4.54 4.49 4.47 4.46 4.50 4.51 4.44 4.41 4.39 4.47 4.58 4.62 4.50 4.54 Systom—1919 4.18 4.14 4.15 4.18 4.16 4.19 4.14 4.12 4.18 4.19 4.53 4.67 4.26 1918. 4.02 4.02 4.08 4.23 4.35 4.42 4.37 4.25 4.24 4.21 4.20 4.18 4.26 td o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 36.—Average rate (per cent) charged on all paper purchased by each Federal Reserve Bank, by months, during the calendar year 1919. Federal Reserve Bank. January. F a e r b y r . u- March. April. May. June. July. August. Se b p e te r. m- October. No b v e e r. m- De b c e e r m . - Av 1 e 9 r 1 a 9 g . e, a Boston .. 4.20 4.17 4.19 4.15 4.17 4.18 4.22 4.24 4.19 4.25 4.45 4.92 4.36 New York 4.22 4.19 4.18 4.20 4.19 4.23 4.25 4.23 4.22 4.24 4.45 4.81 4.37 8 Philadelphia 4.26 4.13 4.17 4.20 4.23 4.33 4.23 4.27 4.26 4.31 4.34 4.75 4.38 Clereland 4.27 4.22 4.19 4.21 4.20 4.22 4.23 4.22 4.23 4.23 4.46 4.84 4.32 Richmond 4.56 4.56 4.56 4.56 4.56 4.56 4.56 4.56 4.56 4.56 4.57 4.82 4.60 Atlanta 4.56 4.56 4.56 4.56 4.56 4.56 4.56 4.56 4.56 4.56 4.56 4.60 4.57 ii Chicago 4.36 4.26 4.21 4.22 4.28 4.27 4.21 4.28 4.25 4.24 4.50 4.87 4.38 St. Louis 4.26 4.21 4.21 4.23 4.39 4.25 4.23 4.22 4.26 4.32 4.49 4.80 4.31 Minneapolis 4.23 4.21 4.20 4.17 4.20 4.22 4.24 4.22 4.21 4.22 4.47 4.75 4.25 Kansas City 4.33 4.19 4.38 4.26 5.07 5.07 5.00 4.25 4.79 4.51 O Dallas 4.62 4.67 4.57 4.63 4.65 4.56 4.65 4.50 4.67 4.73 4.77 5.01 4.68 San Francisco 4.34 4.29 4.33 4.28 4.23 4.26 4.25 4.24 4.24 4.23 4.53 4.88 4.40 o 4.28 4.24 4.24 4.24 4.24 4.24 4.25 4.25 4.25 4.26 4.47 4.84 4.36 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 37.—Average maturity (in days) of all paper discounted by each Federal Reserve Bank, by months, during the calendar year 1919. oo Federal Reserve Bank. January. F a e r b y r . u- March. April. May. June. July. August. Septem- October. No b v e e r. m- De b c e e r m . - Av 1 e 9 r 1 a 9 g . e, Av 19 e 1 r 8 ag . e, Boston 17.72 12.44 8.27 14.68 9.15 12.06 13.87 14.45 11.85 13.38 15.61 13.28 13.12 18.93 New York 7.20 8.68 8.36 8.61 6.58 7.31 7.05 6.67 6.49 6.32 7.12 7.40 7.20 7.31 Philadelphia 9.85 8.46 7.28 7.71 7.27 6.94 7.10 7.31 6.69 6.93 14.32 9.04 7.29 16.51 Cleveland 13.70 14.84 12.28 14.10 14.42 13.99 13.14 14.22 13.16 15.35 17.77 17.61 14.66 17.51 Richmond 10.79 10.75 9.98 10.56 10.88 10.29 11.30 11.51 9.79 10.50 10.90 9.93 10.60 10.40 Atlanta 18.04 17.15 16.64 17.56 16.73 16.35 16.91 16.85 16.95 19.70 21.79 18.70 17.83 19.01 I Chicago 16.67 15.95 16.28 16.33 16.71 17.10 16.84 17.40 20.29 21.31 24.53 27.04 19.33 18.59 St. Louis 13.93 13.42 12.87 12.29 11.00 10.91 13.52 12.39 14.10 13.16 13.50 16.73 13.12 19.89 Minneapolis 16.83 17.09 15.42 15.28 17.95 17.13 18.07 15.42 19.66 25.00 26.73 35.23 22.27 32.78 Kansas City 24.23 22.26 21.87 23.30 21.76 27.09 22.41 17.97 20.76 22.31 27.33 27.66 23.41 30.76 Dallas 26.62 23.07 20.22 21.70 20.43 19.23 19.43 17.94 18.91 17.89 19.14 19.46 20.25 27.00 San Francisco 16.65 15.99 16.58 16.25 16.96 16.42 16.42 17.14 16.41 16.49 17.04 15.28 16.42 25.31 System—1919. 10.34 10.74 10.15 11.07 9.13 9.79 9.41 9.33 9.44 9.54 11.36 11.52 10.13 1918. 18.90 27.73 22.25 11.25 12.59 10.09 12.85 12.70 10.38 11.17 12.37 8.54 11.81 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 38,—Average maturity (in days) of all paper purchased by each Federal Reserve Bank, by months, during the calendar year 1919. Federal Reserve Bank. January. F a e r b y r . u- March. April. May. June. July. August. Se b p e te r. m- October. No b v e e r. m- De b c e e r m . - Av 19 e 1 ra 9 g . e, W Boston 44.84 33.29 34.10 34.22 24.55 34.92 34.47 50.80 29.52 41.12 55.53 55.49 43.10 w New York.... 43.70 38.80 35.18 38.47 37.65 45.46 44.09 36.65 42.24 46.83 48.31 42.64 Philadelphia. 39.71 33.88 39.38 41.47 73.24 47.63 67.02 44.56 49.70 82.78 79.08 74.12 57.00 3 Cleveland 78.14 51.93 46.57 45.60 47.19 52.95 57.12 52.50 49.93 54.39 65.07 66.39 59.82 Richmond.... 69.78 65.48 69.82 62.83 62.26 45.80 46.62 37.63 36.38 58.90 71.64 67.74 56.41 Atlanta 73.70 73.56 66.65 60.40 60.60 45.38 55.80 54.73 59.45 68.14 63.55 66.54 62.38 Chicago 71.12 58.39 53.26 56.07 70.35 65.71 67.27 65.22 60.50 54.67 67.73 71.26 64.43 St. Louis 48.63 36.52 34.17 35.05 44.94 44.51 41.02 48.67 21.42 46.68 61.65 42.16 Minneapolis.. 57.56 57.64 47.22 57.04 59.92 64.96 57.60 54.42 60.16 70.67 73.27 60.14 3 Kansas City.. 62.27 53.01 58.48 47.96 36.77 82.84 88.00 76.25 65.26 61.24 o Dallas 44.74 62.80 52.76 56.34 49.16 23.01 41.20 29.00 58.10 50.54 49.40 36.80 47.38 San Francisco 67.04 54.71 60.58 55.29 58.74 60.91 63.61 57.55 54.86 58.28 66.78 73.39 61.93 System. 55.51 45.67 42.69 42.00 45.80 45.60 51.21 50.73 46.15 48.36 55.55 57.11 50.45 I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 39,—Number of banks, by districts, accommodated through the discount of paper during each month in 1919. OO o Fede d r i a s l t r R ic e t s . erve January. ru F a e r b y - . March. April. May. June. July. August. Se b p e te r. m- October. No b v e e r m . - D b ec e e r m . - T 1 o 91 ta 9. l, T 1 o 91 ta 8. l, T 1 o 91 ta 7. l, Boston 191 152 208 230 245 250 250 243 231 244 265 277 348 269 218 New York 395 403 403 426 423 504 402 381 378 396 405 434 546 522 322 Philadelphia 351 322 341 346 391 432 413 389 388 389 375 405 494 457 201 Cleveland 153 143 177 19£ 207 229 199 213 222 245 282 276 409 320 160 Richmond 242 266 263 281 312 320 321 299 387 297 252 255 414 373 246 g Atlanta .. 245 236 214 223 262 265 233 241 255 247 185 173 347 327 228 Chicago... . . 416 301 597 651 560 551 497 468 494 614 613 586 951 850 541 St. Louis 176 167 171 190 191 168 190 185 205 223 211 205 305 278 149 Minneapolis Id8 128 142 180 235 212 151 1KB3 164 224 280 270 475 580 284 Kansas City 334 313 366 400 418 410 381 295 351 391 354 365 679 554 364 Dallas 419 403 421 465 508 426 398 341 420 359 235 200 607 548 258 San Francisco 226 257 272 288 283 280 250 242 227 210 192 213 418 415 156 Total—1919 3; 316 3,091 3,575 3,875 4,035 4,047 3,685 3,460 3,722 3,839 3,649 3,659 5,993 1918 1,432 1,353 1,568 2,100 2,793 3,021 3,462 3,671 3,464 3,610 3,667 3,288 5,493 1917 309 262 315 384 590 900 960 990 953 1,140 1,574 1,701 3,127 si w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 40.—Acceptances bought in open market during the calendar year 1919, distributed by classes. Bankers' acceptances. Trade acceptances. Month. f t I o r n r a e d t i h g e e n . do I tr n m a d t e h s e t e . ic ex D ch o a ll n a g r e. Total. f I t o r n r a e d t i h g e e n . do I tr n m a d e th s e t e . ic Total. Grand total. w 5 January $100,580,386 $96,180,827 $1,698,770 $198,459,983 $1,935,145 $1,096,578 $3,031,723 $201,491,706 February.. 81,381,667 61,804,082 1,468,980 144,654,729 2,255,982 499,382 2,755,364 147,410,093 March 84,757,707 54,254,477 405,265 139,417,449 3,963,834 280,273 4,244,107 143,661,556 April 89,420,640 47,451,019 406,114 137,277,773 3,114,337 246,799 3,361,136 140,638,909 May 106,705,776 37,889,464 1,158,490 145, 753,730 1,621,293 275,169 1,896,462 147,650,192 June. 227,983,824 62,218,856 67,557 290,270,237 983,940 661,269 1,645,209 291,915,446 1-3 July 213,595,045 60,379,550 841,327 274,815,922 940,450 728,458 1,668,908 276,484,830 o August 155,751,303 36,653,358 381,250 192,785,911 1,157,435 267,279 1,424,714 194,210,625 Ul September. 153,415,849 48,546,581 312,468 '202,274,898 2,293,845 479,592 2,773,437 205,048,335 o October 248,045,528 81,818,557 408,637 330,272,722 3,051,436 1,937,554 4,988,990 335,261,712 November. 252,695,143 82,849,782 1,463,650 337,008,575 2,897,336 789,594 3,686,930 340,695,505 December.. 306,555,328 86,378,589 2,693,252 395,627,169 3,073,839 2,007,085 5,080,924 400,708,093 g Total 2,020,888,196 756,425,142 11,305,760 2,788,619,098 27,288,872 9,269,032 36,557,904 2,825,177,002 i I s oo Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No, 41,—Acceptances bought in open market during each month in 1919; also totals for 1918 and 1917. 00 to Federal Reserve Bank. January. February. March. April. May. June. July. August. September. Boston $24,383,920 $20,341,094 $13,227,576 $17,239,328 $18,501,331 $31,701,356 $24,972,461 $42,565,466 $20,353,090 New York 75,582,937 56,351,764 53,250,195 61,605,656 60,721,633 137,454,889 129,118,992 64,910,476 64,460,086 Philadelphia 883,390 1,541,652 1,828,063 1,918,792 534,512 134,911 278,963 509,732 687,216 Cleveland 31,770,316 13,278,112 13,331,247 14,238,451 15,472,166 29,127,647 30,233,112 16,755,025 23,450,835 Richmond 4,083,668 2,502,650 3,365,168 3,904,855 2,791,242 4,567,752 5,538,112 5,492,600 5,226,079 Atlanta 4,088,494 1,817,889 3,171,230 3,064,032 2,788,678 5,620,163 4,802,064 2,286,371 3,950,570 I Chicago 15,436,290 13,573,765 13,631,397 14,497,266 22,025,711 26,299,097 30,434,172 23,529,003 24,031,764 St. Louis 10,199,890 11,345,794 9,925,288 5,353,983 5,546,649 8,684,572 7,445,974 7,469,809 7,213,275 Minneapolis 10,457,484 4,563,902 12,462,554 5,386,625 4,596,780 16,604,013 10,776,667 7,642,665 12,698,615 Kansas City 6,048,056 3,190,558 4,476,105 1,401,481 9,595 1,999 21,115 600,000 Dallas 2,062,000 943,000 1,080,000 678,000 830,000 734,000 627,822 499,659 1,025,272 1-3 San Francisco 16,495,261 17,959,913 13,912,733 11,350,440 13,831,895 30,985,047 32,256,491 22,528,704 41,351,533 w Total—1919... 201,491,706 147,410,093 143,661,556 140,638,909 147,650,192 291,915,446 276,484,830 194,210,625 205,048,335 te3 1913... 130,619,509 148,275,106 138,996,364 108,515,517 115,913,940 89,580,022 123,573,644 162,796,413 183,132,122 1917... 20,617,180 70,640,679 28,152,638 41,312,691 82,544,372 135,229,697 66,864,065 72,122,802 109,046,466 Per cent—1919 7.1 5.2 5.1 5.0 5.2 10.3 7.2 1918 7.2 8.1 7.6 6.0 4.9 10.1 1917 1.9 2.6 3.8 7.7 12.5 6.7 10.1 W o > Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 41.—Acceptances bought in open market during each month in 1919; also totals for 1918 and 1917—Continued. Total. Per cent. Federal Reserve Bank. October. November. December. 1919 1918 1917 1919 1918 1917 M B Boston.. . $44,081,751 $63,977,798 $39,438,586 $360,783,757 $194,157,686 $91,528,205 12.8 10.7 8.5 U New York 145,060,466 152,609,063 210,272,820 1,211,398,977 945,497,423 464,965,602 42.9 52.0 42.9 Philadelphia 220,704 2,832,489 2,678,026 14,048,450 77,686,322 85,913,798 .4 4.3 7.9 Cleveland 27,417,732 19,053,191 27,622,483 261,750,317 122,800,420 91,109,193 9.3 6.7 8.4 Richmond 4,956,924 3,805,212 6,743,120 52,977,382 70,765,491 58,116,061 1.9 3.9 5.4 Atlanta 9,686,840 4,365,746 6,019,116 51,661,193 45,477,368 26,392,564 1.9 2.5 2.4 Chicago 32,835,029 33,701,105 42,017,209 292,011,808 122,787,257 66,714,061 10.3 7.2 6.2 St. Louis 3,610,303 5,325,336 5,381,753 87,502,626 26,096,120 29,732,271 3.1 1.4 2.7 Minneapolis . . . .. 11,327,226 10,649,919 1,547,985 108,714,435 13,902,579 33,072,316 3.9 .8 3.1 02 Kansas City 10,337,197 26,086,106 14,690,587 26,825,413 .9 .8 2.5 Dallas 1,082,620 1,912,400 940,460 12,415,233 25,024,122 35,076,917 .4 1.4 3.2 San Francisco 54,982,117 42,463,246 47,709,338 345,826,718 150,653,420 68,266,108 12.2 8.3 6.8 Total—1919 335,261,712 340,695,505 400,708,093 2,825,177,002 1918 256,705,208 195,697,512 155,733,438 1,809 538 795 1917 86,894,182 186,218,728 178,069,009 1,077,712,509 Per cent—1919 11.9 12.1 14.2 100.0 1918 14.6 10.8 8.6 100 0 1917 8.1 17.3 16.5 100.0 i W oo CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 4£«—Acceptances bought in open market during each month in 1919, distributed by maturities. 00 MATURITIES. Month. W d it a h y in s. 15 F 3 ro 0 m d a 1 y 6 s . to F 6 ro 0 m d a 3 y 1 s. to F 9 ro 0 m d a 6 y 1 s. to O d v a e y r s 9 . 0 Total, 1919. Total, 1918. Total, 1917. January $27,192,062 $61,483,057 $46,851,121 $65,565,466 $400,000 $201,491,706 $130,619,509 $20,617,180 February 26,214,072 23,394,980 67,650,245 30,150,796 147,410,093 148,275,106 70,640,679 March 22,886,198 32,397,835 60,215,753 28,151,770 10,000' 143,661,556 138,996,364 28,152,638 April 32,819,728 25,629,438 59,148,103 23,041,640 140,638,909 108,515,517 41,312,691 May 34,396,176 25,172,762 50,699,368 37,381,886 147,650,192 115,913,940 82,544,372 June 75,037,208 48,801,795 79,513,349 88,563,094 291,915,446 89,580,022 135,229,697 July 63,916,450 25,443,507 70,265,490 116,859,383 276,484,830 123,573,644 66,864,065 August 34,977,827 29,547,930 67,276,021 62,408,847 194,210,625 162,796,413 72,122,802 September 40,798,778 48,627,506 52,288,254 63,333,797 205,048,335 183,132,122 109,046,466 October 72,022,506 56,552,913 89,997,199 116,665,011 24,0 335,261,712 256,705,208 86,894,182 w November 63,079,659 34,869,917 87,498,710 155,247,219 340,695,505 195,697,512 186,218,728 December 85,410,188 43,867,155 75,922,791 195,507,959 400,708,093 155,733,438 178,069,009 Total—1919 578,750,852 455,788,795 807,326,404 982,876,868 434,083 2,825,177,002 1918 161,963,856 276,656,397 466,589,072 876,539,062 27,790,408 1,809,538,795 1917 32,048,198 128,893,138 267,034,882 613,295,256 36,441,035 1,077,712,509 I W o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 43.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1919, CHRONOLOGICAL TABLE. Rediscounted or sold by Federal Reserve Bank of— w Di F sc e o d u e n ra te l d R e o se r r v p e u r B c a h n a k se o d f — by Date. Boston. New York. d P el h p i h la i - a. Richmond. Atlanta. Chicago. M ap i o n l n is e . - K C a i n ty sa . s Dallas. Fra S nc an isco. S i Discounted Purchased Purchased Discounted Discounted Discounted Purchased Purchased Discounted Discounted Purchased bills. bills. bills. bills. bills. bills. bills. bills. bills. bills. bills. Chicago Jan. 2... $5 000,000 Minneapolis , Jan. 3... $6,013,000 9 Chicago ...do 5,000,000 $5,000 000 O Kansas City ..do ... $5,009,980 Chicago . Jan. 6 .. 5,190,000 Minneapolis ...do 5 000 000 Do Jan.10.. 5,000,000 Chicago Jan. 15 . 1 000 000 Minneapolis ...do 7 500 000 Chicago Jan.17,. 7 500 000 Do Jan.20.. 5,000,000 Do Jan.22.. 2 500 000 Cleveland ..do .. $10 017 300 i Chicago Jan. 23.. 5 000 000 New York ...do $45.853 Minneapolis Jan. 28.. $10 000 000 Chicago ..do ... 10 004 000 Minneapolis Jan. 29.. $5 052 808 Chicago Jan. 30.. 5,000 000 8 Do Jan. 31.. 5,000,000 Cleveland .. do .. 5,088,039 Minneapolis Feb 3 5 036 913 San Francisco ...do 5,010,687 oo Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 43.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1919—Continued. oo CHRONOLOGICAL TABLE—Continued. Rediscounted or sold by Federal Reserve Bank of— Di F sc e o d u e n ra te l d R e o se r r v p e u r B c a h n a k se o d f — by Date. Boston. New York. d P el h p i h la i - a. Richmond. Atlanta. Chicago. M ap i o n l n is e . - K C a i n ty sa . s Dallas. Fra S nc a i n sco. 1 Discounted Purchased Purchased Discounted Discounted Discounted Purchased Purchased Discounted Discounted Purchased bills. bills. bills. bills. bills. bills. bills. bills. bills. bills. bills. Chicago Feb 3... $5,000,000 Cleveland Feb. 4... $10,100 167 Chicago Feb. 6... 5 000 000 Minneapolis Feb. 7... $10,000,000 Cleveland ...do $5,034,384 W Chicago Feb. 8 .. 5 000 000 Do Feb. 11.. 5 057,259 St. Louis ...do 5 071,020 San Francisco do 2,538,884 Chicago Feb. 14. $10,000,000 Minneapolis Feb. 17.. 5,001,156 10,000,000 Chicago ,..do 10 000 000 San Francisco Feb. 18.. 5,163,305 Chicago Feb. 19..$10,028,000 Do Feb. 20.. 5 000 000 5 000 000 Do Feb. 24.. 7 500 000 W San Francisco Feb. 25.. 5,016 061 O Feb. 27.. 10,000 000 Kansas City ...do 5,060,295 ...do 15 000,000 Do Mar. 1... 10 000 000 Mar. 3... 1,182 893 Chicago Mar. 4... 5,000,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

New York ..do.. 100,000 St. Louis ...do.... 2,500,000 Kansas City ..do.... 2,500,000 Chicago Mar. 7.. 5,000,000 ; Do Mar. 10. 5,000,000 Minneapolis ...do.... 10,000,000 Do Mar. 13. 3,008,010 5,000,000 Chicago ...do.... 20,079,153 5,000,000 5,000,000 Do Mar. 14. 5,000,000 St. Louis ...do.... 5,000,000 2,500,000 Kansas City ...do.... 2, 500,000 Chicago Mar. 17. 5,000,000 Cleveland Mar. 18. 6,000,000 Do Mar. 19. 5,000,000 Chicago ...do.... 5,000,000 Do Mar. 20. 5,000,000 Minneapolis ...do.... 5,000,000 10,000,000 Do Mar. 24. 2,500,000 Cleveland ...do.... 5,000,000 Chicago ..do.... 5,000,000 5,000,000 Do Mar. 27. 5,000,000 Minneapolis Mar. 28. 5,000,000 Chicago ..do.... 5,000,000 5,000,000 Minneapolis Mar. 31. 5,000,000 10,000,000 Cleveland ..do.... 5,000; 000 Chicago ..do 5,000,000 Cleveland Apr. 1... 10,000; 000 5,000,000 New York Apr. 2... 10,048,2 10,000,000 Cleveland Apr. 3... 5,000,000 Chicago ..do.. 5,000,000 10,000,000 New York ..do.. 10,000,000 Cleveland Apr. 9.. 5,000,000 Chicago ...do 5,000,000 Do Apr. 10 5,000,000 Minneapolis ...do 10,000,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 43.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1919—Continued . 00 CHRONOLOGICAL TABLE—Continued. oo Rediscounted or sold by Federal Reserve Bank of— Di F sc e o d u e n ra t l e d R e o se r rv p e u r B c a h n a k s ed of — by Date. Boston. New York. d P el h p i h la i - a. Richmond. Atlanta. Chicago. M ap i o n l n is e - . K C a i n ty sa . s Dallas. Fra S nc an isco. i Discounted Purchased Purchased Discounted Discounted Discounted Purchased Purchased i Discounted Discounted ! Purchased bills. bills. bills. bills. bills. bills. bills. bills. bills. bills. bills. 1 i Cleveland Apr. 11 $5,000,000 Chicago ... ...do.... 10,000,000 Ban Francisco ...do.... $2,827,239 New York Apr. 12 IJKIO.000 000 Chicago do.. . i $5 000 000 W Cleveland . Apr. 14 $5,000,000 Chicago ...do 5,000,000 7,500 000 Do Apr. 16 6.000.000 5,000 000 Cleveland -Apr. 17 10 000 000 Chicago .do. .. 5 000,000 Do Apr. 18 5,000,000 Minneapolis Apr. 21 10 000 000 San Francisco ...do 5,036,461 i ft New York Apr. 22 10,000,000 Cleveland . . ...do.... 5,000,000 Chicago ...do 2,500,000 w Do Apr 23 10,000,000 o Cleveland Apr. 24 5,000,000 Chicago .do.. . 5 000 000 2 500 000 San Francisco .do.... 5,046,506 Chicago Apr. 26 5,000,000 7,500 000 Do Apr. 28 5,000,000 5,000 000 San Francisco ...do 5,000,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Cleveland Apr. 29 10,000,000 Chicago ..do 5,000,000 2,500,000 Do......... Apr. 30 4,500,000 San Francisco.. ..do 5,010,3 Minneapolis May 1 10,000,000 X W Chicago ...do 3,000,000 w Do May 2 5,000,000 Cleveland ...do 10,000,000 H I—I Chicago May 3 6,000,000 Do May 5 5,000,000 Cleveland ...do 5,000,000 O Chicago May 6 5,000,000 Do May 7 5,000,000 2,500,000 Do May 8 5,000,000 Do May 9 10,000,000 4,000,000 O San Francisco.. ...do 3,244,941 Minneapolis— May 12 10,000,000 Cleveland May 13 5,000,000 Chicago ...do..... 10,000,000 Do May 14 5,000,000 Do May 15 5,000,000 4,000,000 Cleveland ...do 5,000,000 Chicago May 16 5,000,000 3,000,000 Minneapolis ...do..... 5,000,000 Chicago May 17 4,000,000 Do May 19 5,000,000 5,000,000 Cleveland May 20 5,000,000 San Francisco. ...do.... 5,021,553 Cleveland May 21 5,000,000 Chicago !... do 3,000,000 Do | May 22 6,000,000 Cleveland !.. .do 5,000,000 5,000,000 Minneapolis I.. .do 10,000,000 Cleveland | May 23 5,000,000 Chicago...... r...,...,..r..T... |... do i, 200,000 oo Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 43.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1919—-Continued. CD O CHRONOLOGICAL TABLE—Continued. Rediscounted or sold by Federal Reserve Bank of - Discounted or purchased by Date. Boston. New York. d P el h p i h la i - a. Richmond. Atlanta. Chicago. M ap i o n l n is e . - K C a i n t s y a . s Dallas. Fra S nc an isco. Federal Reserve Bank of—* Discounted Purchased Purchased Discounted Discounted Discounted Purchased Purchased Discounted Discounted Purchased bills. bills. bills. bills. bills. bills. bills. bills. bills. bills. bills. o St Louis May 23 $10 000 000 H Cleveland May 26 $5 000 000 O Minneapolis ...do 5,000,000 *] Chicago .do.... 10,000,000 H Do Mav 28 $4,000,000 W Cleveland do 10 000 000 Do Mav 29 5,000,000 Chicago .do.... 5,004,000 5,000,000 2,500,000 Cleveland June 2 5,000,000 5,000,000 Chicago do 13 000 000 Minneapolis do 10,000,, 000 4,000,000 (TlPVeland June 3 5 000 000 St Louis do 5 000 000 CO Minneapolis do . 5 000,000 Chicago June 4 5 000 000 5,000,000 St Louis do 7,000,000 w Chicago June 5 10 000 000 o Minneapolis ...do 5,000,000 San Francisco June 6 $5 120 057 Chicago June 7 2 500 000 Cleveland June 9 5,000,000 CVIIORPO do 5,000,000 San Francisco ...do 3,318,585 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Chicago June 10 8,000,000 4,000,000 Do June 11 2,500,000 Cleveland June 12 5 000 000 Chicago ...do 5,000,000 2,500 000 Minneapolis ..do 10,000,000 Cleveland June 13 5,000,000 w Chicago . ..do.. 3,500 000 St. Louis ...do.. 8,000,000 1 I w —I Minrieapoli s do 4 000 000 5 000 000 M Chicago June 14 8 000 000 4,000 000 H Cleveland June 16 5,000 000 Chicago .do. 5,000,000 10,000,000 7,000,000 Minneapolis .do. 5,000,000 15 Chicago June 18 5,000,000 1 Cleveland June 19 5,000,000 iI Chicago.. ...do 5,000,000 6,000,000 Sin Francisco do. 5,041,472 Clpveland June 20 10,000,000 1 o Chicago do 5 000 000 2,775,000 Cleveland June 23 10,000,000 St Louis do 10,000,000 Minneapolis ...do. 15,000,000 i San Francisco do 5,028,319 Chicago June 24 10,000,000 1 Minneapolis June 25 5,000,000 Chicago June 26 10,000,000 10,000,000 j MinnpaDOlis do 5 000 000 i Nrexv York June 27 $5,061,566 1 Chicago .do 5,000,000 5,000,000 j)o June 28 5,000,000 3,000,000 > Do June 30 10.000,000 5,000,000 Minneapolis . do 5,000,000 Do July 1 10,000,000 Do July 2 10 000 000 Chicago ...do 5,000,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 43.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1919—Continued. CD CHRONOLOGICAL TA BLE—Continued. to Rediscounted or sold by Federal Reserve Bank of— Di F s e c d ou er n a t l e d R e o t; r y p e u B rc a h n a k s e o d f — by Date. Boston. New Y ork. d P el h p i h la i - a. Richmond. Atlanta. Chicago. M ap i o n l n is e . - K C a i n ty sa . s Dallas. Fra S nc a i n sco. I Discounted Purchase:! .Purchased Discounted Discounted Dir-scounted Purchased Purchased Discounted Discounted Purchased bills. bills. bills. bills. bills. bills. bills. bills. bills. bills. bills. o Chicago July 3 $4,000,000 1)0 July 7 S20 000.000 $10,000 000 O Do. . July 10 15,000,000 5,000,000 Minneapolis .. . .do.. i 5,000,000 Do July 11 10 000 000 Chicago do 5,000,000 2 000 000 Do July 12 5,000,000 I Minneapolis do 10,000,000 ! San Francisco . July 14 $10,013,383 Chicago July 15 5 000 000 Son Francisco do 10,022,763 Do July 16 7,006,406 Chicago . . .do.. 3,000,000 Ul Cleveland July 17 10,011,871 Chicago ...do.... 20,000,000 10,000,000 3,500,000 St. Louis ...do 5,000,000 w Chicago July 21 15,000,000 5,000,000 o Minneapolis ...do.. 15,000 000 > i Do July 22 10,000,000 Chicago July 25 5 000 000 Do July 28 14,000,000 10,000,000 2,000,000 St Louis do 5,000,000 Chicago July 30 ..7.000,000 :::::::::::: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Do July 31 18,000,000 5,000,000 2,000,000 St. Louis ..do.... 10,000,000 Minneapolis ...do.... 10,000,000 Do Aug. 1 5,000,000 2,000,000 I St. Louis ..do.... 5,000,000 Chicago Aug. 4 5,000,000 Do Aug. 7 10,000,000 St. Louis ...do.... 5,000,000 Do Aug. 8 100,000 Minneapolis ...do.... 2,000,000 Do Aug. 9 ',000,000 Do Aug. 11 10,000,000 St. Louis ...do.... 5,000,000 Chicago ...do.... 5,000,000 Do ..do.... St. Louis Aug. 12 5,000,000 3 Minneapolis ..do.... 5,000,000 o Do Aug. 14 1,000,000 St. Louis ..do... 1,409,000 Chicago , .do. 5,000,000 Minneapolis Aug. 15 100,000 Chicago ...do.... 2,000,000 St. Louis ..do.... 10,000,000 Do Aug. 18 5,000,000 Chicago ...do.... 10,000,000 San Francisco ...do.... 5,010,163 Do Aug. 19 5,018,288 Chicago ...do.... 136,500 St. Louis Aug. 20 5,000,000 Minneapolis Aug. 21 10,000,000 Chicago ..do.... 17,000,000 5,000,000 St. Louis .do. 200,000 Minneapolis Aug. 22 5,000,000 Chicago Aug. 23 2,000,000 D® Aug. 25 1,000,000 CD CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 43.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1919—Continued. CO CHRONOLOGICAL TABLE—Continued. Rediscounted or sold by Federal Reserve Bank of— D F is e c d o e u r n a t l e d R es o e r rv p e u r B c a h n a k se d of — by Date. Boston. New York. d P el h p i h la i - a. Richmond. Atlanta. Chicago. M ap i o n l n is e . - K C a i n t s y a . s Dallas. Fra S nc a i n sco. 1 Discounted Purchased Purchased Discounted Discounted Discounted Purchased Purchased Discounted Discounted Purchased bills. bills. bills. bills. bills. bills. bills. bills. bills. bills. bills. St. Louis Aug. 25 $10,000 000 Kansas City ...do $10,012,883 Chicago Aug 28 $5,000,000 5,000,000 Do Aug 29 5,000,000 w Do Aug. 30 $2,000,000 Do Sept. 2 1(5,000,000 $5,000,000 1,500,000 Minneapolis .... ..do. . 10,000 000 Kansas City .. do. .. 10,001,499 San Francisco Sept 3 4,294,113 St. Louis Sept. 4 5,000,000 Chicago Sept. 5 5,000,000 2 000 000 Kansas City ..do. .. 5,008,191 Cleveland Sept 6 3,000,000 Chicago Sept 8 10,000,000 Do . Sept. 11 2,000,000 Minneapolis Sept. 12 15,000,000 W New York.... ...do.... $21,667 o Chicago .. do 7,000,000 3,000,000 St. Louis Sept. 15 5,000 000 Chicago Sept. 17 3,000 000 2,000,000 Do Sept. 18 15,000,000 2,000,000 San. Francisco Sept. 19 2, 794,293 Chicago ...do.... 5,000,000 3,500,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minneapolis Sept. 22 5,000,000 Chicago ...do.... 5 000 000 4,000,000 Do Sept 24 5 000 000 4 000 000 Minneapolis .. do 5,000,000 Chicago Sept. 25 7,000,000 10,000,000 4,000 000 X Do. Sept. 26 3,000,000 H Minneapolis Sept. 27 2,500,000 w Chicago Sept. 29 10,000,000 2,500,000 I—I H Do- Sept. 30 2,000 000 Ib Do . Oct. 1 4,000,000 Minneapolis Oct. 3 5 000 000 Chicago .. do 3 000 000 1,000,000 Do Oct 4 2,500,000 2 000 000 > Oct 6 3 176 075 Chicago Oct 7 5,000,000 1,000,000 10,000,000 O Do.. . . Oct. 9 6 000 000 5 000 000 5,000,000 m Do Oct 11 3 500 000 O Minneapolis Oct 13 5 000 000 Chicago Oct. 14 3 000 000 2, 500,000 Do... Oct. 15 2,500,000 San Francisco .. do 3,177,012 Chicago Oct 16 3,500,000 Do... Opt. 17 4,500,000 1 500 000 3,000,000 Do Oct. 18 2 500 000 4,000,000 Do Oct. 20 5,000,000 4 000 000 Do Oct. 21 1,500,000 Do Oct. 22 3 000 000 Do Oct. 23 5 000 000 2 000 000 I Do Oct 27 8,000,000 Do Oct. 28 1,000,000 Do . . Oct. 29 20,032, 021 4,000,000 St. Louis... .do... . 5 014 052 Cleveland ..do 10 042 517 San Francisco.... .do 5 032 618 Chicago ,.„..„,.,...„ Oct. 30 4,000,000 CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 43.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1919—Continued. CHRONOLOGICAL TABLE—Continued. Rediscounted or sold by Federal Reserve Bank of— Continued. Di F sc e o d u e n ra te l d R e o se r rv p e u r H c a h n a k s e o d f — b * y Dare. Boston. New York. d P el h p i h la i - a. Richmond. Atlanta. Chicago. M ap i o n l n is e . - K C a i n t s y a . s Dallas. Fran S c a i n sco. i Discounted Purchased Purchased Discounted Discounted Discounted Purchased Purchased Discounted Discounted Purchased bills. bills. bills. bills. bills. bills. bills. bills. bills. bills. bills. Chicago - Oct. 31 $2,500,000 $1 500,000 New York ...do $24,083 $9,824 Cleveland Nov. 3 $15,022,249 St. Louis ...do 10,056,382 Chicago ...do 25,002,073 w Do Nov. 4 1,000,000 Do Nov. 6 10,000,000 Do Nov. 10 10,000,000 Do Nov. 12 2,500,000 Do Nov. 13 $10,164,346 St. Louis ...do 10,081,040 Chicago Nov. 14 1,500,000 Do Nov. 17 5,000,000 St. Louis ...do 4,500,000 Dallas Nov. 19 5,012,134 Chicago Nov. 20 4,000,000 Do. . .. Nov. 21 3 000,000 1 g Do. Nov. 22 5 000,000 Do. Nov. 24 5,045,896 Richmond ...do 5,079,873 St. Louis ...do 5,036,679 Dallas ...do 5,065,649 Chicago Nov. 26 2,500,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Kansas City ...do.... 10,005,496 [ Nov 28 5 000 000 St. Louis ...do 4,000,000 Chicago. Dec. 1 10,000,000 Do Dec. 2 4,500,000 X Do. Dec. 5 2,000,000 S Do.. Dec. 8 3,000,000 | j 3 Dallas ..do. 5,000,000 Do. Dec. 12 9,000,000 Chicago Dec. 13 4,500,000 Do. Dec. 18 4,000,000 Dallas... ...do 4,000,000 Do Dec. 19 $7 000 000 Atlanta ...do... 5,061,648 Chicago ...do... 10,097,U< O St. Louis. ...do 5,061,11.' in San Francisco . do 10,081,286 o Chicago Dec. 20 7,000,000 NGW York Dec 22 $500,000 Dallas - do 9,000,000 Chicago Dec. 23 4,500,000 Dallas. Dec. 24 6 000 000 Atlanta . Dec. 29 $5,000,000 Chicago .do 3,000,000 5 000 000 Dallas ...do... 4,000,000 6 000 000 New York . Dec. 30 15,280 Cliicago do 7 000 000 Dallas Dec. 31 7 500 000 1 CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 43.—Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks during calendar year 1919—Continued. CO MONTHLY RECAPITULATION. oo [In thousands of dollars.] Rediscounted or sold by Federal Reserve Bank of— Month. Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. Sa c n i s F co ra . n- Total. 1 Dis- Pur- Pur- Dis- Dis- Dis- Pur- Pur- Dis- Dis- Pur- Dis- Purcounted chased chased counted counted counted chased chased counted counted chased counted chased o bills. bills. bills. bills. bills. bills. bills. bilks. bills. bills. bills. bills. bills. January 10,017 5,010 10,141 16,017 TO 000 36,190 46 32 500 104,724 15,197 February 10,028 20,223 37,867 30,000 30 000 37 500 107,528 58,090 March 24,270 . 60,000 60 000 100 53 500 173,500 24,370 W April 10,048 22,921 91,000 65.000 30,000 67,000 253,000 32,969 May 8,266 80.004 115.000 63 200 258,204 8,266 June 5,062 18 508 140 000 155 000 59 775 354,775 23,570 July 37,055 114,000 165 000 16,500 295 500 37,055 August 20,041 47,000 137,946 ... . . ! 11 000 195 946 20,041 September 22,098 63,000 70,000 26,000 22 . .. i 30 000 189,000 22,120 October .. 46,475 48,000 25,000 19,500 24 10 34,000 126,500 46,509 N ovember 40,473 65 098 57 000 1 000 58,000 105,571 1 December 30,304 80 500 10 000 26 500 515 117,000 30,819 Total 20,045 111,120 312,740 826,521 842,946 82,690 124 78 56,500 404,975 515 2,233,677 424,577 W o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUMMARY FOR THE YEAR. [In thousands of dollars.] Rediscountcd or sold by Federal Reserve Bank of— Total. x W Di c R s h c e a o s s u e e r n d v t e e b d y i3 a o F n r e k d p e o u f r — a r- l Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n i e s. - K C a k n y sa . s Dallas. c F S i r s a a c n n o - . Discounted ch P a u s r e - d G to r t a a n l d . H w Dis- Pur- Pur- Dis- Dis- Dis- Pur- Pur- Dis- Dis- Pur- bills. bills. 1 counted chased chased counted counted counted chased chased counted cou nted chased bills. bills. bills. bills. bills. bills. bills. bills. bills. bills. bills. Boston ! New York ! 15.110 10.000 124 78 30,000 515 40,000 15,827 55,827 Philadelphia Cleveland 10,017 5 035 50 2fi.r> 120,000 85,000 3,000 11 000 229,017 55,300 284,317 Richmond 5 080 5,080 5,080 Atlanta 5,065 5,000 • 5,000 5,065 10,065 Chicago 10,028 30,364 65,113 575,008 300,137 72,190 370 975 1,328,338 95,477 1,423,815 St. Louis 25,250 15,070 53,500 86 709 140,209 40,320 180,529 Minneapolis 19,282 37,013 361 100^ 7,500 23,000 428,613 19,282 447,895 Kansas City ! 10,070 35,029 5,000 5,000 45,099 50,099 D alias 5 065 5,012 31,000 26 500 57,500 10,077 67,577 g San Francisco 10,081 122,969 133,050 133,050 Total 20,045 111,120 312,740 826,521 842,946 82,690 124 78 56,500 404,975 515 2,233, 677 424,577 2,658,254 Iui CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 44.—Amounts of United Stales bonds and Victory notes (par value) purchased by Federal Reserve Banks during each month in 1919 and totals for too 1918 and 1917. o Federal Reserve Bank. January. February. March. April. May. June. July. August. September. Boston $1,300 $16,250 $13,500 New York $1 000 50,000 Philadelphia 2,000 Cleveland *• $10 100 $100 $50 Richmond 100 Atlanta $146,000 7,600 200 Chicago St Louis Minneapolis 12,050 261,800 50,000 Kansas City $150 100' 50 300 150 50 Dallas 7,025 w San Francisco 1,007,000 100 165,000 Total—1919 1,014,175 146,200 166,050 1,300 85,900 277,600 60,250 200 300 1918. 14,337,638 14,746,700 9,823,400 3,239,550 15,831,825 13, 047, 750 1,141,700 284,650 106, 950 1917.. 2,431,390 144,950 8,640,510 2, 870,040 52,000 1,241,900 18,366,650 3,825, 460 20, 830, 650 Percent—1919. 57.76 8.32 9.45 .07 4.89 15.79 3.43 .01 .02 1918 19.38 19.93 13.28 4.38 21.40 17.63 1.54 .38 .14 1917 2.98 .18 10.60 3.52 .06 1.52 22.53 4.69 25.55 Classes of securities purchased each month: % 3| per cent bonds 1,000 200 fei 4 pfir Qcnt bonds 1, 000, 000 o 4| per cent bonds 14,175 146,200 165,050 1,300 50 100 Victory notes 85,900 277, 550 60,250 100 100 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Total. Per cent. Federal Reserve Bank. October. November. December. 1919 1918 1917 1919 1918 1917 Boston $350 $31,400 $8,529,063 $1,418,116 1.79 11.53 1.74 New York.. . 51 000 24 119,000 7 646 600 2.90 32.59 9.38 Philadelphia 2,000 10,973, 050 12,274,250 .11 14.83 15.05 Cleveland 10 250 103,900 4 159 700 .58 .14 5.10 Eichmond $300 100 500 3,900 1,137,500 .03 .01 1.39 Altanta 153,800 19,482,250 7,924 900 8.75 26.33 9.72 Chicago 500 500 94,000 40,985,760 .03 .13 50.27 St. Louis. . 3 250 3 250 650 050 .18 .80 Minneapolis 323,850 8,520,400 615,650 18.44 11.51 .75 Kansas City $50 850 28,200 1,187,240 .05 .04 1.46 Dallas 7,025 91,950 1,3S4,950 .41 .12 1.71 San Francisco 50 1,172,150 2,050,600 2,142,600 66.73 2.77 2.63 Total—1919 50 350 4,200 1,756 575 1918 1,305,750 93 550 36,850 73,996,313 1917 190,400 1,546,946 21,396,420 81, 537,316 Per cent—1919 .02 .24 100.00 1918 1.76 .13 .05 100. 00 1917 .23 1.90 26.24 100. 00 Classes of securities purchased each month: 3$ per cent bonds 500 1,700 4 per cent bonds 1,000,000 4 J per cent bonds 50 50 350 327,325 Victory notes 300 3,350 427,550 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 4:5.—Total amounts of United States certificates of indebtedness purchased by Federal Reserve Banks during each month in 1919. Federal Reserve Bank. January. February. March. April. May. June. July. Boston $7,666,000 S3,000,000 $2,000,000 $2,944,000 $1,000,000 $4,520,000 New York 716,083,000 317,375,500 49,386,500 62,263,000 $75,311,500 114,359,000 204,727,000 d Philadelphia... 1,860,000 1,000,000 4,550,000 2,660,000 1,500,000 8,579,500 2,152,000 t Cleveland 16,485,000 1,550,000 2,772,500 3,322,000 1,259,500 1,271,000 3,179,500 Richmond 15,414,000 76,000 500,000 3,500,000 1,550,000 Atlanta 1,167,000 1,000,000 1,010,000 500,000 735,000 1,050,000 6,000 Chicago 6.457,000 3,000,000 2,030,000 3,000,000 14,000,000 St. Louis 500,000 1,000,000 2,500,000 2,500,000 2,000,000 5,122,000 Minneapolis 8,989,500 994,000 24,370,000 2,450,500 878,000 800,500 718,000 Kansas City... 2,557,500 166,000 873,500 924,000 653,500 5,019,000 580,500 Dallas 725,000 500,000 500,000 796,000 500 000 San Francisco. 50,543,000 165,500 731,000 2,778,500 1,670,000 6,311,500 912,000 w Total—1919. 828,447,000 326,327,000 88,693,500 83,842,000 86,537,500 150,808,500 232,845,000 1918. 511,542,000 518,192,000 1,089,231,860 321,326,300 184,425,500 415,800,500 21, 797,000 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Bank. August. September. October. November. December. Total, 1919. Total, 1918. Boston $100,000 $31,170,000 $2,498,000 $1,516,000 $4,257,000 $60,671,000 $76,620,000 New York 99,464,000 858,955,000 43,431,000 35,948,000 555,628,000 3,132,931,500 5,003,904,500 X Philadelphia... 2,707,000 16,087,500 3,144,500 3,343,000 5,336,000 52,919,500 56,199,000 M Cleveland 4,044,000 179,754,500 607,000 3,163,000 67,199,000 284,607,000 257,443,000 w Richmond 1,100,000 16,600,000 1,100,000 200,000 400,000 40,440,000 32,719,000 I—I Atlanta 2,000,000 19,000,000 1,100,000 1,101,000 1846 28,669,846 20,756,100 Chicago 61,193,500 652,755,000 11,240,000 2,845,000 92,002,500 848,523,000 146,295,060 St. Louis 31,000 1,275,000 3,857,500 18;785,500 6,568,000 Minneapolis... 2,690,000 53,393,000 883,500 176,000 5,548,500 101,891,500 87,570,500 Kansas City... 6,165,000 409,500 1,036,500 2,000,000 5,406,500 31,791,500 11,103,000 Dallas 800,000 000,000 500,000 4,510,000 3,575,000 19;406,000 22,570,500 San Francisco. 610,500 28,963,000 6,881,000 810,000 15,150,500 115,526,500 54,603,500 Total—1919. 180,874,000 1,870,087,500 72,452,500 56,887,000 758,361,346 4,736,162,846 1918. 30,221,500 85,582,000 631,044,500 219,309,000 1,747,880,000 5,776,352,160 1 United States war savings certificate. •a 1 EE w to o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 46.—Amount of 1-year 2 per cent certificates of indebtedness purchased under the provisions of the Pittman Act by Federal Reserve Banks during to each month in 1919 and deposited with the United States Treasurer as security for Federal Reserve bank notes. o Month. Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. January — $2,666,000 $2,521,000 $1,825,000 $1,202,000 ,399,000 SI, 167, $2,445,000 February.. 3,000,000 1,000,000 499,000 76,000 1,000, March 2,000,000 4,500, 000 2,600,000 1,000, April 2,500,000 2,000,000 1,500,000 500, 3,000,000 n May 500,000 1,500,000 1,000,000 500,000 500, 2,000,000 June 500,000 3,000,000 1,040,000 500,000 1,000, 3,000,000 § July 4,520,000 3,600,000 2,000,000 1,000,000 500,000 3,000,000 August 6,200,000 2,500,000 2,000,000 100,000 2,000, 6,000,000 September. 6,300,000 500,000 3,000,000 600,000 1,000, 4,000,000 October.... 4,000,000 1,500,000 100,000 1,100, 2,000,000 November.. 300,000 1,100,000 200,000 1,100, December.. 400,000 400,000 Total--1919. 14,686,000 24,321,000 21,425,000 13,841,000 8,375,000 10,367,000 25,445,000 1918. 6,750,000 34,955,000 8,855,000 9,458,000 3,885,000 5,297,000 14,167,000 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Month. St. Louis. Minneapolis. Kansas City. Dallas. Sa c n i s F co ra . n- Total, 1919. Total, 1918. January... $500,000 $1,030,000 SI, 821,000 $725,000 $1,000,000 118,301,000 February 1,000,000 6,575,000 X March... 2,500,000 500,000 500,000 500,000 14 100 000 April 2,500,000 500,000 500,000 13,000,000 May 2,000,000 500,000 500,000 1,000,000 10,000 000 June 2,000,000 500,000 500,000 12,040,000 Tuly 500,000 500,000 832,000 17,452,000 August 500,000 3,000,000 800,000 24,100,000 $6,000,000 September 500,000 1,500,000 1,000,000 1,500,000 20,900,000 20,000,000 October.. ... 500,000 1,000,000 500,000 2,600,000 14,300,000 35,217,000 November 100,000 2,800,000 12,495,000 December . . . .. 100,000 200,000 1,100,000 30,995,000 Total—1919 10,500,000 4,130,000 9,321,000 5,125,000 7,132,000 154,668,000 1918 6,568,000 4,350,000 3,499,000 3,175,000 3,748,000 104,707,000 NOTE. -Figures for 1919 do not include certificates whose maturity was extended for one year by the Secretary of the Treasury. U2 to o Or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No, 47.—Discount mid open market operations of Federal Reserve Banks diirini 1919, by classes of investments. [Figures are exclusive of rediscounts and sales of discounted and purchased paver between Federal Reserve Banks.] United States securities. Bills discounted for member banks. es bought in open market. Bonds. Federal Reserve Bank. Secured by Gove w r a n r ment c T e r p a t d a e n c a e c s - . All other. Total. Bankers'. Trade. Total. 3 c e p n e t r . 3 c \ e n p t e . r { ! c 4 e p n e t. r obligations. Boston $4,486,153,537 $10,820,992 $178,423, 675,398,246 $356,634,133 $4,149,624 1360,783,757 $1,550 New York 40,453,893,075 57,133,089 1,938,464, 449,491,134 1,191,492,283 19,906,694 1,211,398,977 1,000 Philadelphia 10,209,981,525 3,753,298 522,700, 736,435,271 14,028,450 20,000 14,048,450 Cleveland 2,873,440,114 14,091,343 238,324, 125,856,369 257,361,390 4,388,927 261,750,317 w Richmond 3,982,600,641 9,082,378 139,2C9, 130,942,909 52,977,382 52,977,382 200 Atlanta 1,7 658,401 8,233,847 227,885, 005,777,582 51,661,193 51,661,193 | $200 j. 146,000 Chicago 3,955,045,191 6,580,735 594,686, 556,312,145 291,950,839 60,969 292,011,808 500 !. St. Louis 1,895,246,180 7,946,180 197,438, 100,630,596 87,502,626 87,502,626 j Minneapolis 521,981,023 565,114 138,974 661,520,379 108,714,435 108,714,435 Kansas City 1,188,261,057 7,486,315 359,849, 555,596,623 26,086,106 26,086,106 400 Dallas 1,105,059,651 1,887,002 117,999, 224,946,145 415,233 12,415,233 7,025 San Francisco 1,745,959,276 10,839,780 194,263, 9.51,062,331 337,795,028 8,031,690 345,826,718 1,000 .$1,000,000 171,150 1 Total—1919 174,187,279,671 138,420,073 4,848,269,986 79,173,969,730 \2, 788,619,098 36,557,904 2, 825,177,002 ! 1,700 ; 1,000,000 ! 327,325 1918 33,390,079,891 187,372,579 6,175,481,377 39,752,933,847 1,748, 502,825 61,035,970 1,809,538,795 ! $455,000 7,578,050 44,230,988 j 21,732,275 w O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

United States securities. Municipal warrants. Total. Federal Reserve Bank. V n i o c t t e o s r . y i C n e d r e ti b fi t c e a d t n e e s s o s f . Total. City. State. All other. Total. 1919 1918 X M h-i Boston $29,850 $60,671,000 $60,702,400 $5,096,884,403 $2,039,591,682 W New York 50,000 3,132,931,500 3,132,982,500 46,793,872,611 30,509,109,901 i 1 — -3 i Philadelphia 2,000 52,919,500 52,921,500 10,803,405,221 1,978,466,646 Cleveland . 10,250 284;607,000 284,617,250 3,672,223,936 1,766,465,316 Richmond 300 40,440,000 40,440,500 4,224,360,791 2,263,333,762 Atlanta 7,600 28,669,846 28,823,646 $1,000 $1,000 2,086,263,421 1,016,112,678 Chicago 848,523,000 848,523,500 5,696,847,453 3,536,026,327 St. Louis 3,250 18,785,500 18,788,750 2,206,921,972 1,117,801,374 Minneapolis 323,850 101,891,500 102,215,350 872,450,164 543,785,279 Kansas City 450 31,791,500 31,792,350 11,613,475,079 859,342,349 3 Dallas. 19,406,000 19,413,025 1,256,774,403 635,746,546 o San Francisco 115,526,500 116,698,650 2,413,587,699 1,148,748,857 Total—1919 427,550 4,736,162,846 4,737,919,421 . 1,000 1,000 86,737,067,153 1918 .. 25,776,352,160 5,850,348,473 547,373 $300,000 $862,229 1,709,602 47,414,530,717 1 Exclusive of $22,000 War Finance Corporation bonds held temporarily pending payment by subscribers. 2 Includes $520,000 of 1-year Treasury notes. > j W GO to o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 48.—Discount and open market operations of Federal Reserve Banks during 1919 and 1918, by months and classes of investments. to o Bills discounted for member banks. Acceptances bought in open market. United States bonds, 00 Month and year. w G a S r o e o v c b u e l r r i n e g d m a t e i b o n y n t s. acc T ep r t a a d n e ces. All other. Total. Bankers'. Trade. Total. 3 ce p n e t. r 3 c * e n p t e . r d > Fanuary... $5,713,902,819 $10,904,213 $269,575,233 $5,994,382,265 $198,459,983 $3,031,723 $201,491,706 February 4,755,629,365 8,879,437 216,426,712 4,980,935,514 144,654,729 2755,364 147,410,093 March 5,271,540,337 8,561,401 193,462,436 5,473,564,174 139,417,449 4244,107 143,661,556 $1,000 o kpril 5,693,810,521 8,071,368 199,519,751 5,901,401,640 137,277,773 3361,136 140,638,909 May 7,169,366,551 7,061,335 209,405,170 7,385,833,056 145,753,730 1,896,462 147,650,192 Tune 6,036,277,709 7,946,132 284,687,689 6,328,911,530 290,270,237 1645,209 291,915,446 Fuly 6,824,987,638 8,504,928 349,942,509 7,183,435,073 274,815,922 1668,908 276,484,830 August 6,170,782,470 6,427,411 256,452,405 6,433,662,286 192,785,911 1424,714 194,210,625 September 6,238,301,224 10,608,322 477,245,711 6,726,155,257 202,274,898 2,773,437 205,048,335 200 3ctober 7,348,941,909 16,064,284 695,311,776 8,060,317,969 330,272,722 4988,990 335,261,712 November 6,761,541,757 21,923,920 631,032,698 7,414,498,375 337,008,575 686,930 340,695,505 December 6,202,197,373 23,467,322 1,065,207,896 7,290;872,591 395,627,169 5,080,924 400,708,093 mo Total—1919 74,187,279,671 138,420,073 4,848,269,986 79,173,969,730 2,788,619,098 36,557,904 2,825,177,002 1,700 F 1918 33,390,079,891 187,372,579 16,175,481,377 39,752,933,847 1,748,502,825 61,035,970 1,809,538,795 $455,000 7,578,050 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

United States bonds. Municipal warrants. Total. Month and year. V n i o c t t e o s r . y U ce n r i t t i e fi d c a S te t s a t o e f s Unit T ed o ta S l tates 4 percent. 4J per cent. indebtedness. securities. City. State. Allother. Total. 1919 1918 X W January $1,000,000 $14,175 $828,447,000 $829,461,175 $1,000 $1,000 $7,025,336,146 $1,525,984,729 M February. 146 200 326,327,000 326,473,200 5,454,818,807 1,443,795,053 w March.. . 165,050 88,693,500 88,859,550 5,706,085,280 1,993,080,060 April .... 1,300 83,842,000 83,843,300 6 125 883 849 2 605 719 776 May $85,900 86,537,500 86,623,400 7,620,106,648 3,309,207,111 s June 50 277,550 150,808,500 151,086,100 6,771,913,076 3,655,663,674 July 60,250 232,845,000 232,905,250 7,692,825,153 3,490,037,616 August 100 100 180,874,000 180,874,200 6,808,747,111 3,955,611,937 September 100 1,870,087,500 1,870,087,800 8,801,291,392 4,953,969,540 II October . .... 50 72,452,500 72,452,550 8,468,032,231 6,793,018,635 O November 50 300 56,887,000 56,887,350 7,812,081,230 5,569,708,767 Ul December 350 ! 3.350 758,361,346 758,365,546 8,449,946,230 8,118,733,819 o Total—1919 1,000,000 327,325 427,550 4,736,162,846 4,737,919,421 1,000 1,000 86,737,067,153 1918 44,230,988 21,732,275 1 5,776,919,160 5,850,348,473 547,373 $300,000 $862,229 1,709,602 47,414,530,717 i Includes $520,000 of 1-year Treasury notes. > w Ul cc Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 49.— Total discount and open market operations of each Federal Reserve Bunk, by months, during 1919. to O Federal Reserve Bank. January. February. March. April. May. June. July. Boston $403,009,318 $379,081,553 $346,636,316 $525,426,096 $462,447,748 $395,725,026 $435,552,808 New York 4,259,725,220 3,041,498,231 2,734,369,085 2,801,924,430 4,203,152,964 3,354,611,216 4,323,320,699 Philadelphia..... 686,466,138 643,150,003 839,369,743 920,617,049 947,513,540 1,088,293,030 1,034,505,184 Cleveland , 252,229,449 212,424,705 265,444,757 242; 261,677 256,556,647 252,156,990 319,387,014 Richmond 302,853,721 279,254,369 338,679,714 367,169,727 371,425,045 406,366,036 426,996,327 Atlanta 175,091,730 111,680,376 148,403,707 155,502,011 169,058,842 168,556,993 182,993,039 Chicago 330,839,363 276,621,470 355,519,544 368,358 378 436,906,387 423,769,919 408,088,731 o St. Louis 149,900,925 127,923,659 197,552,229 204,981,046 212,712,193 184,850,182 154,273,131 3 Minneapolis 36,764,059 18,047,882 57,813,649 80,795,670 86,639,295 55,528,177 40,098,143 Kansas City 104,945,378 90,856,720 130,255,444 i 146,473,942 148,043,063 142,111,061 110,503,447 Dallas 92,871,920 93,354,695 105,425,502 118,360,855 130,702,524 114,043,122 100,713,599 San Francisco 230,638,925 180,925,144 186,615,590 194,012,968 194,948,400 185,901,324 156,393,031 w Total—1919 7,025,336,146 5,454,818,807 5,706,085,280 6,125,883 849 7,620,106,648 6,771,913,076 7,692,825,153 1918 1,525,'984,729 1,443,795,053 1,993,080,060 2,605,719,776 3,309,207,111 3,655,663,674 3,490,037,616 W O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Bank. August. * September. October. November. December. Total. Boston $288,044,078 $365,574,774 $432,396,299 ,416,062 $570,574,325 $5,096,884,403 New York 3,693.076,844 I 4,419,116,180 4,660,916,510 4,654,764,138 4,647,397,094 46,793,872,611 Philadelphia 925. 992,018 1,020,490,694 1,155,157,238 689,8-12,281 852; 038,303 10,803,405,221 Cleveland 294,517,467 503,632,546 337,833,565 314,402,869 421,376,250 3,672,223,936 W Richmond 389,592,648 j 366,747,953 325,092,997 268,086,174 382,096,080 4,224,360,791 H I-H Atlanta 18.5,931,984 i 235,739,496 216,636,862 179,499,782 157,168,599 2,086,263,421 Chicago 462.339,271 | 1,054,796,746 455,306,043 484,729,360 639,572,241 5,696,847,453 St. Louis 159,890,092 215,577,975 223,927,323 186,711,100 188,622,117 2,206,921,972 sO Minneapolis 48,525,463 132,942,610 112,823,897 99,631,532 102;839,787 872,450,164 Kansas City 110,264,600 146,971,107 172,215,594 147,934,891 162,899,832 1,613,475,079 I Dallas 95,939,511 125,337,284 138,814,107 77,093,833 64,117,451 1,256,774,403 San Francisco 154633,135 214,364,027 236,911,796 216,999,208 261,244,151 2,413,587,699 IH Total—1919 6,808,747,111 8,801,291,392 8,468,032,231 7,812,081,230 8,449,946,230 86,737,067,153 1918 3,955,611,937 4,953,969,540 6,793,018,635 5,569,708,767 8,118,733,819 47,414,530,717 o Exclusive of $22,000 War Finance Corporation bonds held temporarily pending payment by subscribers. o I <3 to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Exhibit E.—GOLD SETTLEMENT FUND. to No. 50.—Summary of transactions, Jan. 1 to Dec. 31, 1919. GOLD SETTLEMENT FUND. [In thousands of dollars.] Summary of changes A d g e g p r o e s g i a ts te Interbank transfers. Settlements fro b m o t J h a n in . c 1 l , u 19 si 1 v 9 e . . to Dec. 31, 1919, B in a l f a u n n c d e i g n o ld o w b ne y r shi b p a nk o s f Feder B al a n R k e . serve D Ba e 1 l c 9 a . 1 n 8 3 c 1 . e , dr w G aw i o t l h a d - ls. de G po o s ld its. an d a f f d r g e u a r e t n w s r n d a t a t . o n ' l s s s- a f n e a f r d g s u e t n r f n d r a t o . n 's m s- Debits. Credits. de N b e i t ts. d T e o b t i a ts l . c T re o d t i a t l s. cr N ed e i t ts. • D a o t e n 1 f c 9 e c b . l 1 s o u s 9 3 s s . 1 e i , - D a t e h n c r d r o e u a s s e g e t h t . le I m t n r c a e r n n e s t a f s s e . e r . s o H O Boston 37,293 280 47,054 50,780 50,554 738,233 225,550 5,263,553 5,773,519 509,966 34,351 2,717 New York 66,790 80,120 220,000 165,120 230,000 392,958 3,297,644 3,030,399 20,434,208 17,403,809 5,957 125,713 w Philadelphia 37,413 1,400 177,279 185,400 193,176 561,261 1,028,191 480,440 6,889,785 6,409,345 31,679 13,510 Cleveland 52,126 61,800 48,468 86,800 78,468 918,369 132,122 4,776,924 5,563,225 786,301 43,848 54 Richmond 14,254 3,318 81,852 89,318 101,852 949,399 845,347 5,472,082 5,574,547 102,465 25,201 1,587 Atlanta 6,302 1,625 72,904 102,025 86,904 133,651 131,127 1,967,295 1,997,971 30,676 19,333 28,152 Chicago 106,772 170 244,681 433,610 476,681 2,115,191 1,052,986 7,833,044 8,821,885 988,841 76,479 73,364 > St. Louis 15,974 27,902 78,616 216,402 191,116 397,140 119,576 4,809,048 5,113,822 304,774 17,898 27,210 Minneapolis 23,774 250 41,641 47,750 75,141 682,927 357,671 1,320,379 1,599,342 278,963 4,872 46,293 Kansas City 23,237 559 18,456 10,559 31,456 331,356 106,364 3,350,391 3,557,182 206,791 25,933 18,201 Dallas 6,935 6,139 21,711 25,939 22,711 460,125 488,930 15,435 1,970,174 1,954,739 17 077 13,370 San Francisco 11,056 208,730 71,642 458,230 261,685 250,249 145,351 1,966,510 2,284,007 317,497 27,109 212,599 Total 401,926 392,293 1,124,304 1,871,933 1,799,744 7,930,859 7,930,859 3,526,274 66,053,393 66,053,393 3,526,274 329,737 281,385 281,385 C Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE AGENTS' FUND. [In thousands of dollars.] Federal Reserve agent at— De B c a .3 la 1 n ,1 c 9 e 1 , 8. with G dr o a ld wals. de G po o s ld it?. W fo t i r o t h t r b d a a r n a n s w k fe . a r l s s t D t r h a e r n p o s o u f s e g i r h t s s with T d o r t a a w l als. de T p o o t s a i l ts. B b c a u l l s o a i s n n e c e e o s f s a , t from bank. Dec.31, 1919. Boston 46,000 133,000 100,000 3,500 50,500 136,500 150,500 60,000 New York... 80,000 45,000 10,000 85,000 55,000 85,000 110,000 H X Philadelphia. 72,287 166,000 15,897 184,000 181,897 184,000 74,390 Cleveland.... 90,000 11,500 1,500 30,000 25,000 41,500 26,500 75,000 H Richmond... 60,000 88,000 20,000 86,000 108,000 86,000' 38,000 Atlanta 37,270 65,670 14,000 100,400 79,670 100,400 58,000 1hrj Chicago 270,704 243,000 6,000 232,000 433,440 475,000 439,440 235,144 St. Louis 59,131 81,200 112,500 188,500 193,700 188,500 53,931 o Minneapolis.. 40,800 35,000 33,500 47,500 68,500 47,500 19,800 F Kansas City.. 51,360 54,000 43,000 13,000 j 10,000 67,000 53,000 37,360 o Dallas 6,684 25,500 14,500 1,000 | 19,800 26,500 34,300 14,484 San Francisco 114,261 63,500 190,043 I 249,500 253,543 249,500 110,218 H 1-3 Total... 928,497 1,011,370 165,000 675,440 1,479,640 1,686,810 1,644,640 886,327 H fed to CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 51.—Weekly operations throujh the gold settlement fund during 1919. [In thousands of dollars.] Transactions, all Federal Reserve Banks. Transactions, Federal Reserve Bank of New York. Week ending— c ( l o T d ea n e o r b l t i y a n it . l g s ) s tr ( o a T d n n e o s l b t y f a i e t ) l s r . s c t c r o l a T e m n a a o s n b r t f i i d a n e n l r g e s s d . c d l e e G b a r r i o t i s n s s g in s. c c l r e e G a d r r i o i t n s s g s i s n . f T r R F o B r e a m e a n d s n e s e o k r f r e t v s a h r e . l e s r T R F t B r o e a e a n d s o n e s e t k r f h r e v a s e r e . l r s Net de C b l i e t a . ri N ng e s t . credit.! Net d T eb ra it n . sf N e e rs t . credit. Cle f a e r r i s n g co s m an b d in t e r d a . ns- 1919. Jan. 1,014,823 218,876 1,233,699 400,905 243,630 181,111 157,275 181,111 1,155,677 192,844 1,348,521 455,265 | 293,486 155,395 161,779 155,395 1,020,725 65,942 1,086,667 337,491 286,575 36,496 50,916 36,496 1,139,184 192,810 1,331,994 411,451 265,818 140,383 45 145,633 140,338 30. 1,009,724 80,909 1,090,633 362,917 255,733 54,771 107,184 54,771 Feb. 6. 1,010,963 179,521 1,190,484 342,889 257,463 152,521 85,426 152,521 13. 788,963 61,162 850,125 288,205 180,530 41,000 107,675 41,000 20. 1,117,683 103,760 1,221,443 357,494 317,139 63,500 40,355 63,500 27.. 896,434 79,672 976,106 281,722 234,027 50,131 47,695 50,131 Mar. 6. 1,013,443 92,500 1,105,943 326,035 269,543 70,500 56,492 70,500 13. 976,960 150,000 1,126,960 320,736 250,667 120,000 70,069 120,000 20.. 1,114,020 216,496 1,330,516 384,205 292,448 160,000 496 91,757 159,504 27.. 1,102,339 201,926 1,304,265 402,118 250,263 165,000 151.854 165,000 Apr. 3. 1,086,410 214,007 1,300,417 350,726 310,495 119,000 30,007 40,231 88,993 10. 1,026,768 51,000 1,077,768 368,547 255,207 25,000 113,340 25,000 17. 1,083,304 150,500 1,233,804 345,858 299,192 70,000 46,666 70,000 24. 1,014,720 103,967 1,118,687 292,696 279,886 21,000 12,810 21,000 May 1. 1,050,756 140,014 1,190,770 330,136 283,613 36,361 1,967 46,523 34,394 12,129 8. 1,042,949 131,180 1,174,129 333,923 288,306 26,895 1,954 45,617 24,941 20,676 15. 1,022,076 112,790 1,134,866 327,025 274,888 5,000 1,641 52,137 3,359 48,778 22. 1,179,312 209,591 1,388,903 343,954 321,129 95,000 1,963 22,825 93,037 70,212 29. 1,079,781 191,964 1,271,745 339,172 285,971 70,000 401 53,201 16,398 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

June 5... 1,010,089 | 180,320 1,190,409 288,274 262,349 34,000 i... 25, ! 34,000' 8,075 12... 1,145,978 | 100.131 1,246,109 328,942 319,229 1,420 9, 1,420 j 11,133 19... 1,433,166 ! 263,741 1,696,907 442,905 369,115 113,000 842 73, | 112,158 38,368 26... 1,359,793 285,722 1,645,515 422,536 354,936 87,000 j 1,512 67, ! 85,488 17,888 July 3.... 1,324,223 361,192 1,685,415 387,281 362,761 75,000 j 147,150 24, 72,150 ! 96,670 10... 1,025,728 119,493 1,145,221 317,766 282,656 I I 35, 35,110 17.... 1,411,078 239,556 1,650,634 419,593 424,650 I 21,700 58,612 I. 5,057 36,912 i 31,855 24... 1,400,774 | 176,282 1,577,056 397,382 393,659 ! 46,347 2,551 | 723 | 43,796 ! 40,073 31.... 1,213,926 272,020 1,485,946 359,740 341,724 | 107,000 016 j 107,000 I 88,984 Aug. 7.... 1,310,594 160,114 1,470,708 441,848 299,022 ! 68,000 142,826 j 68,000 ! 74,826 14... 1,328,100 223,925 1,552,025 451,345 319,430! 72,000 20,700 ! 131, 51,300 j 80,615 21.... 1,434,295 185,178 1,619,473 411,916 383,637 ! 33,934 589 | 28, 33,345 I 5,066 3 28... 1,303,133 108,036 1,411,169 404,325 327,028 I 27,942 27,942 I 49,355 I Sept. 4... 1,083,871 136,878 1,220,749 301,519 306,634 | 24,000 | 3,032 I. 5,115 20,968! 26,083 11.... 1,391,775 180.132 1,571,907 411,629 394,563 | 85,000 I 18,940 | 17,066 66,060 48,994 i 18.... 1,487,666 242,195 1,729,861 406,195 423,843 | 68,789 31,020 |. 17,648 37,769 I 55,417 25... 1,634,744 305,375 1,940,119 565,566 381,166 I 147,953 16,800 I 184,400 ! 131,153 | 53,247 Oct. 2... 1,458,773 138,630 1,597,403 460,585 390.192 ! 74,455 13,563 | 70,393 | 60,892 j 9,501 9... 1,463,637 147,090 1,610,727 468,698 365,750 ! 34,000 4,387 | 102,948 ! 29,613 | 73,335 16... 1,371,694 62,101 1,433,795 378,772 347,177 I 25,000 750 i 31,595 24,250 | 7,345 23... 1,745,586 116,489 1,862,075 472,749 493,097 | 33,163 664 |. 20,348 | 32,499 ; 52,847 30.... 1,577,673 104,330 1,682,003 469,232 392,227 | 41,000 1,936 I 77,005 39,064 | 37,941 Nov. 6... 1,432,615 101,218 1,533,833 427,809 351,266 j 65,000 1,747 | 76,543 63,253 13,290 13... 1,521,155 75,548 1,596,703 414,723 432,133 I 27,180 17,410 1 27,180 ! 44,590 20... 1,758,322 36,327 1,794,649 473,992 485, 726 I 300 2,667 11,734 | 2,367 j 9,367 26... 1,409,957 48,754 1,458,711 390,832 372,906 | 3,634 17, 3,634 , 21,560 Dec. 4... 1,783,514 94,023 1,877,537 504,102 493,376 | 30,000 2,229 10, 27,772 I 17,045 11... 1,478,042 75,348 1,553,390 430,784 371,901 | 20,621 9,670 58, 10,950 | 47,933 18... 1,704,302 51,117 1,755,419 488,237 445,750 10,200 2,020 | 42, 8,180 | 34,307 24... 1,452,209 244,639 1,696,848 454,472 348.193 150,269 6,151 106, 144,118 \ 37,839 31... 1,481,085 135,761 1,616,846 458,696 366,074 66,198 1,898 92, 64,300 | 28,322 I Total 66,884,511 8,113,096 74,997,607 20,755,915 ! 17,598,1793,448,115 392,958 3,235,048 77,312 116,483 3,171,640 1,021,455 918,876 to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 ANNUAL REPORT 01' THE FEDERAL RESERVE BOARD. OPERATIONS THROUGH i GOLD SETTLEMENT FUND BY WEEKS II DURING CALENDAR YEAR 1919. 2000 I 0ROSS DEBITS Iti THEFUIiD THROUGH SETTLEMENTS AM) TRANSFERS. GROSS TRANSFERS THROUGH FUPID. 1800 1800 1600 1600 1400 1400 1200 1200 1000 1000 eoo 600 600 400 400 200 200 GROSS DEBITS Iff SETTLEMEPITS. JAN. FEB. MCH. AFRL MAY JUNE JULY AUG. SEPT OCT. HOV. DEC. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

217 EXHIBIT E GOLD SETTLEMENT FUND. i OPERA TIONS Or THE HEW WRK BANK THROUGH THE GOLD SETTLEMENT FUND BY WEEKS, DURING CALENDAR YEAR1919. 500 400 300 200 100 O 100 200 300 400 S00 600 «D: GROSS DEBITS THROUGH SETTLEMENTS AMD TRANSFERS. -Cl GROSS CREDITS THROUGH SETTLEMENTS AND TRANSFERS. ^ NET GAIN OR LOSS THROUGH SETTLEMENTS AND TRANSFERS. GROSS DEBITS THROUGH TRANSFERS. 6R0SS CREDITS THROUGH TRANSFERS. S00 soo 400 300 200 100 0 100 200 300 400 SOO "D«- GROSS DEBITS IN SETTLEMENTS. 600 »C"- GROSS CREDITS IN SETTLEMENTS. I NET LOSS OR GAIN THROUGH SETTLEMENTS. JAN. r£B. MCH.APRL MAY JUNE JULY AU6. SOT. OCT. MOV. DEC. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 52.—Gold settlement fund—Changes in ownership of gold throu h transfers and settlements by weeks. ) [ In thousands of dollars.] OO Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Week ending— Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease. Increase. 1919. Jan. 2 (1 dav only) 747 704 534 2,948 3,263 3,635 9 . 1 285 6,384 8,222 11,797 1,503 2 421 16 8 729 14,420 13,471 1 338 7,040 1 957 23 7,047 5,295 2,342 8,147 2,634 1,753 30 1,771 52,413 6,730 1,559 9,786 6,259 o Feb. 6 15,418 67,095 3,040 20,396 2,887 2 743 13 11,315 66,675 7,943 16 876 866 800 20 1,722 23,145 51 9,314 177 3,918 4,679 2,436 5,595 7 333 1,289 719 Mar. 6 3,076 14,008 3,228 1 458 8 492 1,842 13 . .. 160 49,931 809 15,037 2,955 6,372 i 20 20,814 67,747 1,903 20,440 8,525 6,218 27 7 909 13,144 5,956 1,664 18,138 6,150 Apr 3 3,334 48,762 3,110 8.861 535 4 507 10 . . .. 13,239 88,340 1,455 ....I . ...'. ... 9,975 2,211 6,175 17 2,097 23,334 4,536 19.103 824 315 24 9,131 8,190 1,648 12,823 5,493 6 450 May 1 325 12,129 3,506 2,075 2,919 67 8 i 1,210 20,676 6,682 6,392 3,365 860 w 15 9,055 48,778 5 881 12 947 3 4lfi 1 030 o 22 6,863 70,212 2,764 6,403 i 411 1 791 29. 9,671 16,398 2,508 9,020 3,543 3,034 June 5 12,949 8,075 4,746 10, 762 416 686 12 3,429 11,133 5,970 7,144 572 2,803 19 10,613 38,368 1 699 1 225 8,510 11,714 26 17,731 17,888 7,163 ! 29,115 * 12,927 5,552 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 3 2,044 96,670 3,550 24,627 3,818 6,045 10 19,987 35,110 708 15,211 2,957 3,397 17 6,071 31,855 5 414 3 428 26 2,445 M -3 24 10,458 40 073 797 12,155 2 590 3,448 §g 31.. ...... 19,823 88,984 6,557 14 078 810 7,527 w Aug. 7 12,496 74,826 3 024 2 625 4 060 4,025 b 14 22,920 80,615 5 835 7,438 242 1,634 9 21 306 5,066 5,752 758 3,620 2,153 28 1,005 49,355 4,523 11,600 422 3,557 I-1 Sept. 4... 11,362 26,083 5,002 7,986 4,357 3,188 W Ol F 8,163 48,994 3,167 3 152 1,812 2,470 w 11 18 28,937 55,417 2,793 15 317 15,630 5,039 I—I 25 8,622 53,247 1 737 4,671 9,248 8,101 H Oct. 2 2,360 9,501 1,508 4,663 1,139 800 9 . .. 12,265 73,335 3 372 2,865 6,058 6,462 16.. 1,098 7,345 4 323 2 093 3,689 2,914 23... 7,286 52,84? 2,648 13,217 6,581 2,233 30 772 37,941 1 760 3,440 5 484 2,344 nui Nov. 6 15,151 13 290 6,750 15,879 8,712 5,822 13.. 16,471 44,500 6,176 14,631 494 2,955 1 20... . .. 1,201 9,367 2,957 5 145 2,612 1,438 26 8,368 21,560 1 833 879 8,996 2,136 Dec. 4 359 17 045 2,134 7,611 831 146 11 17 269 47 933 827 3,452 1,575 7,222 18 ... 1,760 34 307 8,270 18,990 4 762 8,364 24 5,162 37,839 575 19 741 14 919 1,227 31 5,390 28,322 6,816 17,552 348 4,069 Total 217,071 214,354 1,021,455 895,742 111,905 98,395 253,651 253,705 115,038 113,451 81,390 109,542 Net increase 54 28,152 Net decrease 2 717 125 713 13 510 1 £87 to CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 52.—Gold settlement fund—Changes in ownership of gold through transfers and settlements, by weeks—Continued. to [In thousands of dollars.] o Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Week ending— Total. Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease.Incroase. Decrease. Increase. Decrease Increase. 1919. Jan. 2 (1 day only) 4 973 2,506 1,918 448 1 577 7,002 15,128 9. 10,029 568 1,051 4,490 2 212 2,262 26,112 16 . .. 40,430 6,602 2,660 2,963 701 2,355 51,333 23 32,437 2 472 11 261 6 409 276 659 40,366 30 19 835 10,244 5,161 6,502 276 4 836 62,686 Feb. 6 2 388 2,259 11,735 10,553 395 5,365 72,137 13 .. . . .. 29,639 183 8,506 3,558 679 5,287 76,163 20 21,998 4,908 2 743 5 162 1 145 4,099 39,191 27 859 2,856 511 164 1,840 14,545 21,413 Mar. 6 6,491 10,087 2,571 10,901 1,837 9,407 36,699 13 16 290 990 12, 724 * 5,034 439 4,091 57,416 20 20 213 21,768 4 258 12,151 5,399 3,988 96,712 27 . . .. 21 187 5 034 2,797 7,292 2,883 1,735 46,945 Apr. 3 15,188 2,492 16,782 4 174 4,072 1,165 56,491 10 28,182 1 777 9,313 8,796 4,581 . 14,708 94,376 17 2,766 3,394 2,452 2,952 4 224 4,095 35,046 24 2 387 2,209 1,059 3,855 2,377 3,286 29,454 May 1 12,717 3,612 2,368 2,883 1,811 3,682 24,047 8 15,553 8,284 10,574 4,690 2 475 5,209 42,985 15 5,772 13 123 6,544 6,422 5 509 485 59 481 22 - 16,466 4,201 19,721 5,092 717 15 967 75,304 29 . . 30,026 2,468 5,365 5,287 1,163 7,445 47,964 JunB 5 8,814 8,056 860 3,977 1 959 1,248 31,274 12 3,963 10,623 5,154 1,347 2,833 811 27,891 19 22,033 6,097 7,410 7,616 1 490 4,055 60,415 26 7,665 4,003 554 5,860 6,837 12,257 63,776 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 3. 17,645 10,335 9 522 3 659 4 507 31,120 106,771 10. 5,741 3,590 4,429 3 918 4,550 12,684 56,141 17.. ... 43,997 66 5 913 2,370 2,183 17,876 60,822 24 38,596 2,182 6,991 3,455 5,730 5,449 05,962 31 . .. 20,819 4,301 3 612 6 420 5 594 557 89,541 Aug. 7.. . 19,755 2,068 5 475 7,165 1 076 19,345 77,970 14 10,485 21,064 584 20 343 2,359 10,333 91,926 21. .... 26,005 12,880 1,580 3,711 981 4 618 33,715 28.. 6,083 3,563 762 5,280 1 681 29,397 58,614 Sept. 4 3,957 3,806 314 10,573 314 7,548 42,245 11 19,930 9,603 5,593 22,104 1,042 9,486 67,758 18 6,099 4,966 1 911 2 242 456 3,287 71,047 25 17,578 1,432 1 531 4,705 499 17,481 64,426 Oct. 2. 3,810 518 2,666 716 81 15,118 21,440 9. 26,722 2,845 7,450 14,464 3 321 9,155 84,157 16 7,659 18,770 794 10,154 1,307 218 30,182 23 . . .„ 41,485 1,377 12,629 2,254 1,208 1,363 72,564 30 16,566 7,196 8,306 3,026 9 821 4,920 50,788 Nov 6. 15,530 2 960 3,181 4,920 14,974 22,371 64,770 13 . . 40,981 261 1,118 10,898 6,330 14,837 79,871 20 .. 11,566 2 868 345 8,243 1,420 5,974 26,568 26 1,739 2,637 4 763 9,456 1 079 12,467 37,956 Bee 4 17 909 4 792 5,595 16 604 2 740 16,414 46,090 11 32,405 12,905 4,230 11,456 5 513 13,331 79,059 18 1,691 1,752 3 973 7 321 7 880 18,297 58,684 24 10,212 2,424 1 740 2,934 4,679 9,583 55,518 31 2,826 2,803 690 5,162 4,562 6,772 42,657 Total 469,728 396,364 128,785 155,995 154,021 107,728 180,166 161,965 71,112 84,482 123,723 336,322 2,928,047 Net increase 27,210 13,370 212,599 281,385 Net decrease 73,364 46 293 18,201 281,385 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Exhibit F.—CLEARING OPERATIONS. to to to No. 53.—Operations of the Federal Reserve clearing system Jan. 1 to Dec. SI, 1919. Feder B al a n R k e . serve Ite i B n m a s n F k e d c d r i a e t w y r . a n l o R n es b e a r n v k e s Ite i b n m r a s n F c d e h r d a c e w i r t a n ie l s o . R n e b se an rv k e s Ite i e b n m r r a a d s l n i R s c d t h e r r s i a c c e w t i r t v n o i e e u s t o B . s n i a d n e b k a F a n e n k d d s - Ite s o d e m t i r h r s v e e c e r t f d F t o i o e s r d t b r w e i a c r a n a ts l r k . d s R e i e d n - Item S s ta d t r e a s w t n re a o s n u re U r n . ited Total, i cj Number. Amount. Number. Amount. Number. Amount. Number. Amount. Number. Amount. Number. Amount. Boston 5,941,776 $7,295,404,959 27,427,592 $4,109,154,120 2,203,930 $724,044,603 35,573,298 $12,128,603,682 New York 7,359,215 22,658,510,132 893,748 $623,292,894 41,866,397 19,594,682,115 13,052,056 7,653,564,995 63,171,416 50,530,050,136 Philadelphia 12,051,043 8,907,672,377 15,379,260 2,129,201,167 2,117,101 923,192,809 29,547,404 11,960,066,353 Cleveland 2,073,358 2,447,238,428 3,971,168 4,439,940,802 19,994,217 3,402,145,518 40,977 $13,578,423 1,928,493 509,262,826 28,008,213 10,812,165,997 Richmond 852,423 2,163,826,000 1,772,463 1,817,519,340 15,196,386 3,092,406,700 786,155 165,877,305 18,607,427 7,239,629,345 w Atlanta 1,061,425 1,001,447,360 1,325,039 1,031,494,078 7,971,684 1,502,571,449 1,485,934 396,820,055 11,844,082 3,932,332,942 Chicago 6,499,319 8,207,773,000 1,420,996 981,781,000 23,274,806 3,382,981,000 4,231,417 918,985,000 35,426,538 13,491,520,000 St. Louis 2,003,865 2,867,534,767 1,711,435 1,314,007,992 12,886,664 1,393,981,053 2,224,362 286,874,571 18,826,326 5,862,398,383 3 Minneapolis 1,865,012 1,502,509,473 8,021,304 772,659,605 1,486 21,433,878 357,880 66,960,349 10,245,682 2,363,563,305 g Kansas City 2,002,947 3,392,275,702 1,491,838 1,229,091,504 22,004,489 3,122,524,234 61 1,009,583 1,751,252 166,155,176 27,250,587 7,911,056,199 Dallas 603,014 863,236,590 547,925 281,020,111 9,591,545 2,697,697,933 1,264,544 157,168,692 12,007,028 3,999,123,326 San Francisco 892,688 1,173,663,890 1,697,871 1,397,567,072 10,562,938 1,140,899,386 897 1,218,211 1,496,600 2,549,564,449 14,650,994 6,262,913,008 Total 43,206,085 62,481,092,678 14,832,483 13,115,714,793 214,177,282 46,340,904,280 43,421 37,240,095 32,899,724 14,518,470,830 305,158,995 136,493,422,676 1 1 1 Represents total of items handled exclusive of duplications. 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Items f i o n r w ow ar n d e d d is t t o ri c b t r . anches Items o ffi f c o e r w by a r b de ra d n c t h o e s. head Ite b F m r e a d s n e c r h a f l e o s r R . w e a s r e d r e v d e B t a o n ks o t a h n e d r Grand total. Federal Reserve Bank. Number. Amount. Number. Amount. Number. Amount. Number. Amount. Boston. 660,973 $926,195,000 36,234,271 $13,054,798,682 New York 238,776 $100,489,001 158,869 $118,217,969 10,894,856 5,791,991,010 74,463,917 56,540,748,116 Philadelphia 7,456,465 2,806,870,819 37,003,869 14,766,937,172 Cleveland 508,916 404,944,059 206,928 98,200,807 1,064,872 1,141,488,326 29,788,929 12,456,799,189 X M Richmond 43,593 104,219,100 79,230 115,941,400 2,204,105 1,844,390,100 20,934,355 9,304,179,945 2 Atlanta • . 1,100,122 252,123,984 258,007 376,202,026 1,053,650 926,446,065 14,255,861 5,487,105,017 Chicago 88,268 95,674,000 43,740 57,238,000 2,033,775 481,111,000 37,592,321 14,125,543,000 St. Louis.. . 196,141 71,498,334 109,979 30,625,448 281,309 146,137,487 19,413,795 6,110,659,652 Minneapolis . . _ t 502,014 406,445,334 10,747,696 2,770,008,639 Kansas City 1,022,556 419,011,545 197,610 187,301,741 2,330,721 1,595,553,631 30,801,474 10,112,923,116 Dallas. . . . 512 020 123,371,930 224,851 56,651,842 1,405,493 686,845,129 14,149,392 4,865,992,227 San Francisco 1,133,551 485,495,520 46,792 79,562,471 377,250 477,349,713 16,208,587 7,305,320,712 Total.... 4,843,943 2,056,827,473 1,326,006 1,119,941,704 30,265,483 17,230,823,614 341,594,427 156,901,015,467 s 3 O fcO to CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 54.—Growth of the Federal Reserve clearing system, by monthly periods, from Apr. 15, 1917, to Jan. IS, 1920, inclusive. Average daily number of items handled. Average daily amount of items handled. Drawn on— Drawn on— Total nu T m ot b a e l r number of non- B R F a e c e n d s it k e e y s r r . v a i e l n B R F d o a i e u e n s d s t t k s e e r i s r i r d c v a e i t e l n U u S T r t n r e a e i r t a t e e o s s d - f . Total. B R F a c e e n i d s t k e e y s r r . v a i e l n B R F d o a i u e e n s d s t t k s e e r i s r i r d c v a e i t e l n T of S r e U t a a s n te u i s t r e . e d r Total. m b e a m n o k f b s e . r b m p a a n e r m k l s i b s o e t. r n city. city. 1917. Apr.15 31,162 168,607 12,582 212,351 $60,288,002 $32,666,959 $2,643,408 $95,598,369 7,625 8,607 May 15 33,767 171,093 15,925 220,785 87,370,859 36,473,163 3,597,865 127,441,887 7,634 8,926 June 15 37,898 179,193 16,344 233,435 97,322,883 38,599,461 4,414,508 140,336,852 7,651 8,789 July 15 38,476 182,622 19,100 240,198 109,722,256 41,004,720 11,637,899 162,364,875 j 7,666 8,805 Aug. 15 36,727 175,625 19,533 231,885 98,075,919 40,353,278 9,701,569 148,130,766 | 7,683 8,837 Sept. 15 36,306 182,191 23,492 241,989 100,331,694 41,323,621 11,006,515 152,661,830 I 7,718 9,934 Oct. 15 40,591 212,935 26,797 280,323 128,271,466 47,476,204 13,518,566 189,266,236 7,747 9,052 Nov. 15 47,574 232,723 30,426 310,723 166,552,773 64,296,210 17,496,974 248,345,957 j 7,826 9,210 Dec. 15 47,678 240,756 33,806 322,240 171,723,439 84,441,761 27,179,053 283,343,253 j 7,823 9,321 1918. Jan. 15 48,549 253,458 38,130 340,137 148,033,108 89,065,135 21,116,293 I 258,214,536 7,909 9,268 Feb. 15 46,207 227,312 48,224 321,743 153,847,568 80,248,466 21,316,033 I 255,412,067 7,972 9,319 Mar. 15 51,408 259,531 58,991 369,930 153,701,375 113,134,162 25,827,757 | 292,663,294 8,013 9,425 Apr.15 55,034 271,506 59,228 385,768 159,441,188 98,201,962 31,563,675 ! 289,206,825 j 8,059 9,450 May 15 49,569 287,061 60,771 397,401 178,372,385 114,099,520 30,928,185 | 323,400,090 j 8,113 9,475 June 15 51,055 295,056 77,750 423,861 164,539,000 113,407,619 39,054,003 j 317,000,622 | 8,165 9,710 July 15 63,549 391,264 82,536 537,349 192,220,658 143, 751,620 47,181,467 i 383,153,745 j 8,212 9,761 Aug. 15 50,229 406,330 81,323 537,882 172,600,132 131,047,263 41,063,646 j 344,711,041 j 8,294 10,206 Sept. 15 55,123 441,979 87,213 584,315 182,321,867 145,374,804 45,695,643 j 373,392,314 | 8,428 10,549 Oct. 15 64,931 495,441 106,539 666,911 208,639,006 169,025,374 51,048,149 ' 428,712,529 8,510 10,318 Nov. 15 82,434 550,484 98,168 731,086 231,014,467 191,310,103 52,790,232 475,114,802 8,584 10,219 Dec. 14 85,174 590,685 135,173 811,032 219,162,199 167,471,893 60,766,938 447,401,030 | 8,612 10,409 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1919. Jan. 15 98,584 632,118 77,282 807,984 224,904,918 162,371,765 37,753,800 425,030,483 8,702 10,246 Feb. 15 90,944 599,951 126,051 816,946 198,935,424 156,360,759 63,221,002 418,517,185 8,724 10,483 Mar.15 109,083 640,346 114,563 863,992 168,567,377 171,714,589 46,746,505 387,028,471 8,735 10,718 Apr. 15 138,817 686,512 137,228 962,557 197,456,121 167,142,262 49,329,926 413,928,309 8,758 11,060 May 15 129,378 665,641 157,820 952,839 176,737,129 163,067,746 45,278,441 385,083,316 8,786 11,288 June 15 132,688 696,457 118,248 947,393 196,594,573 191,330,944 48,316,599 436,242,116 8,825 11,782 July 15 149,902 737,007 95,986 982,895 218,737,336 194,300,102 49,869,067 462,906,505 8,848 12,071 Aug. 15 139,678 731,680 83,659 955,017 194,733,618 176,612,134 57,868,769 429,214,521 8,894 12,578 Sept. 15 149,460 761,680 77,201 988,341 208,529,081 202,812,209 51,935,604 463,276,894 8,920 12,962 Oct. 15 164,761 824,862 93,437 1,083,060 235,072,612 223,417,562 45,272,641 503,762,815 8,955 13,852 t Nov.15 177,569 915,794 107,551 1,200,914 236,521,957 246,055,511 37,355,291 519,932,759 9,007 14,861 Dec. 15 182,347 975,095 88,071 1,245,513 251,531,229 254,594,746 36,506,264 542,632,239 9,050 15,851 T 1920. Jan. 15 197,562 1,028,259 I 78,160 1,303,981 270,143,956 264,521,801 29,612,240 564,277,997 9,089 16,986 O a § rn to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

226 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. NUMBER OF BANKS ON PAR LIST, ALSO AVERAGE DAILY NUMBER A?W AMOUNT OF ITEMS HANDLED BYHR.BANKS, I9P-I9I9. 600 600 500 500 ^* 400 H 400 300 f SJ ^! 300 200 =«* i 1I i im mk W /// ZOO 100 •y/4 too 0 m WA i i w % i i i i i i 1 M V.M//A i 1 mw, 0 AVERAGE PAILTAMOUNT OF ITEMS HARPLED DURIttG EACH MONTH;W' MILUOHSOF DOLLARS WM Items droMntbn3anJCsvn.JTJi.ScinJC(Xties. MSM Items <tra»H,orLjB<vdCs ou&sidefJZ. Sajvfc Ccties. WMMtznts dr<um<m,U.S. Treasurer. 1.4O0.OOO *-< 1200000 1.200.000 1000.000 A 1.000.000 4 f W\ 800.000 600.000 % 600.000 600000 m 400.000 i 400.CW H 2O0.OQ0 % 200-000 O AU m A6ELWLYDUMBER01c/7EMShWiPLEPPUHll\(6 wY. 0 HMItem vmsdra*'it a in t . r 2 t a J .nJCt J o 8 u a ts ru\ c : d 6 e i r titV. Sa 'Cu emsd>m on, a^ SCO-er TOTAL NUMBER OF BANKS ON PAR LIST. Member Xante. JTonrJfcmber San/cs %m ii 191? 1918 1919 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 55.—Number of member banks in district; also number of nonmember banks on par list in each Federal Reserve district, by months, for the calendar year 1919. Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. Month. b M d a i n s e t m k ri s b c e i t n . r b m p a a N e n r m k o l s n i b s - o e t r . n b M d a i e n st m k r s i b c e i t n . r b m p a a N n e r m k o l s n i b s - o e t r . n b M d a i n s e t m k ri s b c e i t n . r b m p a a N e n r m k o l s n b i s - e o t r . n b M d a is e n t m k r s i b c e i t n . r b m p a a N e n r m k o l s n b i s - e o t r . n b M d a i e s n t m k r s i b c e i t n . r b m p a a N n e r m k o l s n i b s - o e t. r n b M d a is n e t m k ri s b c e i t n r b m p a a N e n r m k o l s n i b s - o e t. r n b M d a is e n t m k r s i b c e i t n . r b m p a a N e n r m k o l s n i b ^ - e o t r . n Jan. 15. 424 244 721 322 666 314 814 738 565 353 424 290 1,338 2,414 Feb. 15. 424 244 722 321 666 322 ! 819 778 568 312 422 289 1,338 2,500 Mar. 15. 424 244 722 320 666 i 821 786 568 329 422 295 1,340 2,599 Apr. 15. 425 243 725 322 665 350 819 790 569 295 423 310 1,342 2,804 May 15 426 243 729 319 666 356 822 797 570 299 424 301 1,346 2,925 June 15 429 241 734 318 667 361 825 833 572 339 424 329 1,351 3,080 July 15 429 241 735 319 669 406 826 911 574 349 424 333 1,356 3,067 Aug. 15 429 241 740 317 670 406 832 956 572 395 428 351 1,364 3,192 Sept. 15 430 242 744 | 319 670 409 837 1,014 573 418 431 349 1,363 3,184 Oct. 15. 430 242 746 322 674 409 841 1,025 575 443 431 348 1,363 3,211 Nov. 15 429 244 751 321 676 411 | 841 1,063 582 450 429 347 1,366 3,522 Dec. 15. 431 245 751 319 677 414 | 842 1,079 584 466 426 348 1,374 3,700 I Dec. 31. 432 245 753 322 678 415 843 1,085 585 485 426 355 1;374 3,896 i—i O izi w to to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 55.—Number of member banks in district; also number of nonmember banks^ on par list in each Federal Reserve district, by^months, for the to to calendar year 1919—Continued. 00 St. Louis. Minneapolis. Kansas Citv. Dallas. San Francisco. Total. Month. b M d a i n s e t m k r s i b c e i t n . r b m p a a N e n r m k o l s n i b s - e o t r . n b M d a i e s n t m k r s i b c e i t n . r b m p a a N e n r m k o l s n i b s - e o t r . n b M d a is n e t m k r s i b c e i t n . r b m p a a N e n r m k o l s n b i s - e o t r . n b M d a i e n st m k r s i b c e i t n . r b m p a a N e n r m k o l s n b i s - e o t r . n b M d a i e s n t m k r s i b c e i t n . r b m p a a N e n r m k o l s n i b s - e o t r . n M ba e n m k b s e . r b m p a a N e n r m k o l s n i b s - e o t. r n Jan. 15 513 1,035 1,191 2,171 728 247 648 927 8,702 10,246 Feb. 15 511 1,184 871 1,207 994 2,161 734 245 655 920 8,724 10,483 Mar. 15 512 1,248 873 1,233 995 2,167 736 244 656 915 8,735 10,718 Apr. 15. 515 1,333 875 1,292 999 2,170 739 240 662 911 8,758 11,060 May 15 519 1,356 875 1,293 1,003 2,248 741 240 665 911 8,786 11,288 June 15 526 1,483 1,307 1,002 2,279 744 301 669 911 8,825 11,782 July 15 519 1,606 1,318 1,007 2,290 746 321 676 910 8,848 12,071 Aug. 15 527 1,653 1,463 1,013 2,371 748 320 678 913 8,894 12,578 Sept. 15 527 1,731 1,485 1,017 2,502 748 392 681 917 8,920 12,962 Oct. 15 530 1,848 909 1,504 1,019 2,828 748 750 689 922 8,955 13,852 g Nov. 15 533 2,127 915 1,493 1,028 3,038 757 905 700 940 9,007 14,861 Dec. 15 535 2,222 920 1,874 1,037 3,138 756 1,105 713 941 9,050 15,851 Dec. 31. 538 2,309 920 1,879 1,038 3,346 756 1,220 723 942 9.066 16,499 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT G EARNINGS AND EXPENSES. 229 Exhibit G.—EARNINGS AND EXPENSES OF THE FEDERAL RE- SERVE BANKS FOR 1919. Total earnings of the Federal Keserve Banks for the calendar year 1919 were $102,380,583, compared with $67,584,417 for the calendar year 1918, while total current expenses were $20,341,798, compared with $12,137,438 for the earlier year. Current expenses for the year under review include, besides $15,439,194 of expense of operation proper, $3,016,823, the cost, including expressage, insurance, and other expenses incident to the issue and retirement of Federal Reserve notes; $872,326, taxes on Federal Reserve bank note circulation; $938,791, the cost of furniture and equipment purchased during the year, and $74,664, the cost of repairs and alterations of bank premises. As a result of increased borrowings by member banks and the higher discount rates adopted, the earnings of all the Federal Reserve Banks show considerably higher totals for the last three months than for the earlier months of the year. Total current expenses shown above are exclusive of the expenses of the fiscal agency departments. These expenses are treated separately, being reimbursable by the Government. During the past calendar year the Federal Reserve Banks acting as fiscal agents, largely in connection with the Victory loan and the several certificate issues, expended a total of $16,626,016. There was also due to the banks from the Treasury at the beginning of the year a total of $9,573,832, expended by the banks during the year 1918. Reimbursements received during the year from the Government amounted to $22,612,681, leaving thus a reimbursable balance at the end of 1919 of $3,587,167. Current net earnings of the banks—i. e., the excess of earnings over current expenses—totaled $82,038,785, compared with $55,446,- 979 for 1918. Calculated on an average aggregate paid-in capital for the year of $83,513,000 the net earnings for 1919 constitute 98.2 per cent, as compared with 72.6 per cent on the average paid-in capital in 1918. To the current net earnings above shown should be added $219,575, the amount by which the reserve set aside in previous years to take care of depreciation of United States bonds owned has been reduced, and $40,857 representing largely amounts carried directly to profit and loss during the past year. This gives total gross profits of $82,299,217. Deductions from this total, $3,931,713, comprise the following items: Depreciation allowances of $2,649,819 on bank premises (especially large in New York City and Chicago); additional reserve against depreciation of United States bonds, $34,156; a special reserve of $525,741 set aside by the New York bank to cover losses and take care of future contingencies; an amount of $493,928, assessed against the banks for the support of the Federal Reserve Board during the first six months of 1920, and miscellaneous deductions of $228,069. This leaves net earnings available for dividends, surplus, and franchise taxes of $78,367,504. Dividends at the rate of 6 per cent paid during the year by all the Federal Reserve Banks amounted to $5,011,832. Under section 7 of the original act the banks had to carry to surplus one-half of their net earnings up to 40 per cent of their paid-in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

230 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. capital and had to pay the other half to the Government as a franchise tax. In accordance with this provision the banks at the close of 1918 carried to surplus $21,605,901, and under instructions from the Reserve Board, concurred in by the Treasury, set aside the balance of their net earnings, $26,728,440, as a special reserve for payment of the franchise tax. On March 3, 1919, an amendment to section 7 was enacted whereby all net earnings, after deduction of 6 per cent dividends, were to be paid into a surplus fund until this fund should have reached 100 per cent of the total subscribed capital, and that thereafter 10 per cent of such net earnings were to be carried to surplus, while the remainder was to be paid as a franchise tax to the Government. This amendment was made applicable to the net earnings for the calendar year 1918, and accordingly the Federal Reserve Banks transferred to surplus account the amount of $26,728,440 reserved at the close of the year for franchise tax. At the end of 1919 net earnings, after payment of dividends, amounted to $73,355,672, and of this amount $70,651,778 was carried to surplus, while the balance was paid to the Government as franchise tax by the New York bank, whose surplus is in excess of 100 per cent of its subscribed capital. For the other banks the ratios of surplus to subscribed capital stand as follows: Per cent. Per cent. Boston 58. 8 St. Louis 45. 8 New York 100. 7 Minneapolis 58. 0 Philadelphia 55. 8 Kansas City 76. 1 Cleveland 47. 7 Dallas 44. 3 Richmond 66. 3 San Francisco 65. 3 Atlanta 68. 5 Chicago 57. 9 System 68. 7 Of the total earnings of the banks, about 78.9 per cent, as against 71.5 per cent in 1918, came from discounts, largely war paper; bills purchased in open market contributed about 13.7 per cent of the total earnings, as against 17.7 per cent in 1918; United States securities, chiefly Treasury certificates, 5.6 per cent, as against 5.7 per cent the year before; transfer operations yielded about 0.8 per cent of the annual earnings, compared with 1.5 per cent in 1918, while the balance of the earnings represent penalties including interest on deficient reserves, collection charges, profits on sales of foreign coin, and sundry smaller profits. Of the total expenses of operation of the banks proper, exclusive of their fiscal agency departments, $7,103,547, or about 46 per cent, as against 42 per cent the }rear before, went as compensation to the clerical staff, and $1,418,144, or about 9 per cent, as against 11.5 per cent in 1918, as salaries to bank officers. Compensation of special officers and watchmen, also of extra help, overtime pay, and supper money account for $1,375,311, or about 9 per cent of the total expenses of operation; $902,547, or 6 per cent, as against 10 per cent the year before, went for postage and expressage, and $829,178, or about 5.5 per cent, for printing and stationery. Contributions of the banks for the support of the Federal Reserve Board totaled $594,818, as against $382,641 the year before, and constitute about 4 per cent of the banks' total operating expenses, compared with 4.5 per cent for 1918. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT G—EARNINGS AND EXPENSES. 231 Rent paid by the banks totaled $613,988, compared with $369,122 in 1918, the New York and Chicago banks reporting the largest increases under this head. All the banks have invested in bank premises, but most of them for the present find it necessary to transact the bulk of their business in rented quarters. Total book value of investments in bank premises at the close of the year, after allowing $2,649,819 for depreciation, stood at $10,156,3*18, compared with $8,081,841 at the beginning of the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

to Earnings and expenses of each Federal Reserve Bank for the calendar year 1919. CO to EARNINGS. Boston. Y N o e r w k. Ph p i h la i d a. el- C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. Sa c n i s F c r o a . n- Total. Discounted bills 16,003,252 $29,935,911 $7,987,864 $5,341,785 $4,099,953 $3,735,033 $8,915,827 $22;,918,462 $1,829,46113,888,839 $2:,443,80( £3,667,951 $80,768,144 Purchased bills 1,077,691 3,326,839 67,019 1,882,985 351,418 367,338 2,141,78y 564,495 882,564 340,875 113,39' 2,870,368 13,986,778 United. States securities 369,457 1,888,497 495,768 450,308 185,293 228,958 736,241 320,412 213,501| 405,400 229,080 238,385 5,761,300 Municipal warrants 85 85 Transfers—net earnings 45,607 8,356 143,495 10,570 51,461 198,749 193,661 178,410 830,309 Deficient reserve penalties (including interest) 27, 836 36,405 25,673 66,x 442 125,192 68,313 44,569 52,373 26,3821 106,705 81,984 65,970 727,844 Profits realized on United States secur- I ities 2,350 5 2,355 Sundrv profits 19,347 144,760 33,556 11,352 13,468 7,913 30,157 18,166 3,672 20,914 323 140 303,768 Total earnings. 7,497,583 35,332,412 8,609,880 ',800,829 4,775,324 ,416,001 12,012,078 3,884,478 3,007,041 4,961,482 3,062,251 7,021,224 102,380,583 CURRENT EXPENSES. Expense of operation: Assessments, account expenses Federal Reserve Board $45,619 $181,875 $49,059 $58,676 $29,535 $22,391 $80,170 $24,981 $20,209 $28,151 $20,362 $33,790 $594,818 Federal advisory council (fees and traveling expenses) 500 1,150 381 1,035 736 470 816 1,150 \}274 300 992 2,594 11,398 Governors' conferences (including traveling expenses) 2441 316 2io| 499 254 575 523 553 83 498 788 2,498 7,041 Federal Reserve agents' conferences (including traveling expenses) 109 139 255 43 133 84 229 341 361 109 1,105 2,908 Salaries- Bank officers 105,097 294,795 96,929 99, 815 74,796 116,952 158,083 95,040 61,014 91,604 87,212 136,807 1,418,144 Clerical staff 606,345 1,982,807 577,104 494,639 326,746 289, 855 881,142 400,860 208,171 453,258 390,993 491,627 7,103,547 Special officers and watchmen. 12,278 61,208 44,688 17,444 7,497 10,037 64, 752 13,408 8,726 14,423 6,363 13,757 274,581 All other 12,111 781, 297 59,228 71,687 16,283 12,934 80,785 20,289 3,530 11,698 11,883 19,005 1,100,730 Directors' fees 3,550 24,345 4,059 2,600 3,400 3,013 4,915 5,970 3,870 6,735 2,220 5,879 70,556 Per diem allowance 1,1401 650 930 820 4,085 590 2,290 980 6,438 740 1.344 20,007 Traveling expenses 2,661 3,385 1,278 1,989 1,999 3,025 1,249 3,326 1,9651 5,102 1,487 27,466 Officers' and clerks' traveling expenses 8,708 29015 5,421 16,304 8,689 9,113 28,147 22,933 5,531 13,959 14,578 16,729 179,127 Legal fees 3,817 11,250 1,941 3,000 570 4,495 5,500 61 3,380 1,825 2,400 3,199 41,438 Rent 58 367 290,243 1, 500 53,525 7,941 14,018 97, 477 36,020 14,295 31,820 5,526 3,256 613,988 Taxes and fire insurance 3,554 15,775 533 11,452 8,268 253 701 851 646 1,746 5,672 49,451 Telephone 11,855 32490 14,423 6,445 2,447 2,988 9,793 3,548 2,2W3 3,734 3,189 4,912 98,047 Telegraph 7,958 33,235 7, 578 15,084 10,032 24,326 24,216 15,609 2,752 12,233 21.772 27,929 202,724 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Postage 78,621 116,072 60,780 70,916 48,262 49, 906 98,723 54,853 34,781 78,769 39,883 V, 193 778,758 Expressage 3,416 54,395 7,804 2,028 2,809 8,831 4,586 2,468 25,556 4,538 123,789 Insurance and premiums on fidelity bonds 19,104 98,817 45,848 33,088 9,718 8,881 8,736 18,961 8,692 20,806 13,308 20,636 306,955 Light, heat, and power 16, 771 2,859 17,616 3,937 5,093 3,889 8,087 1,945 4,546 3,365 5,852 73,960 Printing and stationery 41,478 236,653 78,477 46,952 39,083 46,294 101,4;66 34,676 25,228 49, 782 41,009 88,080 829,178 Repairs and alterations 16, 722 130,718 31,581 9,560 11,393 2,619 40,349 5,314 6,352 11,508 13,194 18,620 297,930 Cost of currency shipments to and from member and nonmember banks 78,824 103,905 35,354 33,790 41,504 31,982 66,144 47, 789 7,906 27,075 25,519 46,474 546,266 Allother 82,115 142,251 102,559 31,552 21,008 44,003 84,905 18,673 11,255 40,881 41,348 46,197 666, 747 Total expense of operation 1,220,964 4,613,220 1,260,243 1,076,278 682,110 723,083 1,853,298 833,765 434,378 918, 620 775,542 1,047,693 15,439,194 Cost of Federal Reserve currency (including expressage, insurance, etc.).. 285,917 642,430 209,419 168, 867 119,347 148, 735 400,418 188,617 56, 273 131,339 85, 719 187,486 2,624,567 Miscellaneous charges, account note issues 31, 774 105,167 45,411 16,981 28,582 11,536 62,558 20,313 17,002 16,493 8,028 28,411 392,256 Taxes on Federal Reserve bank note F B u c a r i n r n k c i u t p u la r r e t e i m o a n i n s e d s equipment • 8 4 9 3 , , 4 7 2 4 2 8 2 1 0 6 4 9 , , 0 5 1 1 4 4 1 9 6 0 8 1 0 , , , 1 1 8 3 1 6 2 2 8 5 8 3 0 , , 4 4 1 9 4 1 3 4 2 9 , ,4 4 2 6 0 8 4 46 1 , , 8 5 4 4 6 5 4 1 8 1 9 3 8 3 , , 0 9 8 7 0 0 5 7 8 3 , , 3 7 0 9 0 8 2 23 4 , , 9 9 2 1 6 2 6 54 5 ^ . 3 2 2 9 7 0 4 7 2 0 , , 8 7 2 1 9 8 1 3 1 1 5 9 3 , , , 6 4 0 7 0 9 1 0 4 9 8 3 7 7 2 8 4 , , , 3 6 7 2 6 9 6 4 1 T Total current expenses. 1,671,825 5,734,345 1,775,185 1, 396,031 911,927 972,217 2,548,324 1,174,793 556,491 1,186,069 982,836j 1,431,755 20,341,798 Current net earnings, year 1919 5,825,758 29,598,067 6,834,695 6,404,798 3,863,397 3,443,784 9,463,754 2,709,685 2,450,550 3, 775,4132,079,415 5,589,469 82,038,785 Per cent of average paid-in capital 84.3 137.5 89.1 69.0 91.7 104. 8 81.0 69.3 81.6 99.0 63.5 113.3 98.2 Ul IISCAL AGENCY DEPARTMENT EXPENSES OF EACH FEDERAL RESERVE BANK, AMOUNTS REIMBURSED BY THE TREASURY DEPARTMENT' AND BALANCES REIMBURSABLE AT THE END OF THE CALENDAR YEAR 1919. Boston. Y N o e r w k. Ph p i h la i d a. el- C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. Sa c n is F co ra . n- Total. X Total disbursements during 1919 $1,166,763 $4,963,642$1,005,050$1,494,163 $577,099 $712,656 $2,711,206 $921,819 $606,534 $752,044 $553,058SI,161,982 $16,626,016 Amounts reimbursable Jan. 1,1919 558,932 3,049,530 758,096 766,785 226,076 458,650 1,261,885 450,342 150,212 451,220 508,669 933,435 9,573,832 Ul Total 1,725,695 8,013,172 1,763,146 2,260,948 803,175 1,171,306 3,973,091 1,372,161 756,746 1,203,264 1,061,727 2,095,417 26,199,848 Ul Reimbursements received during 1919.. 1,539,918 7,035,337 1,645,329 1,930,562 550,352 1,049,519 3,440,610 1,265,704 627,461 796,088 848,133 1,883,668 22,612,681 Balance reimbursable Jan. 1,1920 185,777 977,835 117,817 330,386 252,823 121,787 532,481 106,457 129,285 407,176 213,594 211,749 3,587,167 to CO CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Earnings and expenses of each Federal Reserve Bank for the calendar year 1919—Continued. to PROFIT AND LOSS ACCOUNT OF EACH FEDERAL RESERVE BANK FOR THE CALENDAR YEAR 1919. Boston. Y N o e r w k. Ph p i h la ia d . el- C la le n T d iB . - m R o ic n h d - . Atlanta. •• Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. Sa c n i s F c r o a . n- Total. Earnings $7,497,583 $35,,332,412 $8;,, 609,880 $7',800,829 $44,,777755,,324 $4;, 416,001 $12,012,078 $31,,884,478 $3,007,041 $4,961,482 $31,,062,251 $7,,002211,,224 $102!,, 380,583 Current expenses. 1,671,825 5,734,345 1,775,185 1,396,031 911,927 972,2171 2,548,324 1,174,793 556,491 1,186,069 982,836 1,431,755 20,341,798 Current net earnings for year 5,825,758 29,598,067 6,834,695 6,464,798 3,863,397 3,443,784 9,463,754 2,709,685 2,450,550 3,775,413 2,079,415 5,589,469 82,038,785 Credits to current net earnings on account of— I Amounts previously reserved for depreciation on United States bonds 58,606 13,096 147,846 27 219,575 All other 31,096 3,697 940 3,584 103 470 967 40,8.'>7 Total 5,825,758 29,629,163 6,838,392 6,404,798i 3,922,943 3,460,464 9,463,754 2,709,685 2,450,550 3,923,362 2,079,885 5,590,463 82,299,217 ===== Deductions from current net earnings W on account of— Bank premises 900,032 254,684 20,000 51,478 820,000 335,000 100,000 168,625 2,649,819 Reserve for depreciation United States bonds 29,112 5,044 34,156 Assessment account expenses Federal Reserve Board, Jan.-June, 1920 38,666 168,612 41,828 46,555 25,531 20,302 66,764 19,520 16,607 16,167 33,306 493,928 Special reserves 525,741 525,741 All other 9,711 75,089 108,283 4,730 146 6,287 786 11 21,854 1,172 228,069 Total deductions. 48,377 1,669,544 179,223 311,013 45,677 78,067 887,550 354,531 116,607 38,021 203,103 3,931,713 Net earnings available for dividends, surplus, and franchise tax, Dec. 31, 1919 5,777,381 27,959,619 6,659,169 6,093,785 3,877,266 3,382,397 8,576,204 2,355,154 2,333,943 3,923,362 2,041,864 5,387,360 78,367,504 Dividends paid 414,447i 1,291,047 462,380 556,785 252,872 197,397 700,807 234,660 180,186 228,755 196,335 296,161 5,011,832 W Transferred to surplus fund 5,362,934| 23,964,678 6,196,789 5,537,000 3,624,394 3,185,000 7,875,397 2,120,494 2,153,757 3,694,607 1,845,529 5,091,199 70,651,778 O Franchise tax paid United States Government j 2,703,894 2,703,894 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Earnings and current expenses of each Federal Reserve Bank, by months, for the calendar year 1919. EARNINGS. Boston. New York. Ph p i h la ia d . el- Cleveland. m R o ic n h d - . Atlanta. Chicago. St. Louis. Min l n is e . apo- K C a i n ty sa . s Dallas. Sa c n is F co r . an- Total. January... $525,055 $2,806,299 $658,171 $579,072 $385,481 $349,756 $823,055 $282,051 $204,303 $382,520 $265,073 $509,295 $7,770,131 February.. 506,592 2,576,420 616,446 542,338 354,977 288,668 693,832 226,019 193,851 340,310 227,487 466,167 7,033,107 March 567,475 2,843,565 690,973 597,250 394,719 324,003 865,435 327,022 224,985 413,774 246,157 577,361 8,072,719 April 587,362 2,648,937 674,815 570,417 396,212 318,467 853,765 330,224 259,045 413,795 232,809 508,416 7,794,264 X May 619,839 2,908,549 706,261 590,570 398,218 338,776 934,037 288,564 240,428 400,104 234,943 566,630 8,226,919 w June 604,188 2,586,788 702,695 576,734 377,693 334,959 958,234 285,962 229,249 395,505 233,634 507,603 7,793,244 July 631,738 3,064,518 702,684 619,051 380,629 344,191 1,022,300 284,508 239,952 391,880 255,115 575,207 8,511,773 August 583,143 2,896,848 718,959 646,465 366,955 352,294 988,782 311,286 216,553 351,139 242,681 588,572 8,263,677 September. 629,460 2,623,409 707,226 621,130 383,302 383,043 931,560 343,458 241,666 436,133 256,967 607,390 8,164,744 w October... 655,413 3,155,511 756,681 700,893 416,300 446,108 1,076,905 368,794 300,369 458,344 295,663 663,666 9,294,647 November. 745,500 3,400,023 793,629 845,449 420,958 451,996 1,290,014 385,860 299,549 456,273 259,549 707,021 10 055,821 December. 841,818 3,821,545 881,340 911,460 499 880 483,740 1,574,159 450,730 357,091 521,705 312,173 743,896 11,399,537 o Total 7,497,583 35,332,412 7,800,829 4,775,324 4,416,001 12,012,078 3,884,478 3,007,041 4,961,482 3,062,251 7,021,224 102,380,583 CURRENT EXPENSES. O GO January... $105,759 $345,502 $79,011 $93,863 $50,214 $57,207 $136,033 $73,798 $33,423 $87, 111 $62,652 $77,595 $1,202,168 February.. 92,402 306,935 94,606 115,527 70,201 75,445 135,033 63,199 35,580 63,002 46,422 75,109 1 173,461 March 177,414 411,008 117,851 119,519 77,650 74,446 181,500 97,658 32,358 116,995 80,096 89,342 1,575,837 April 125,801 354,288 91,920 83,108 67,434 76,463 206,763 75,704 32,402 102,430 54,775 84,950 1,356,038 May 97,283 531,778 84,591 90,258 63,803 69,099 237,633 68,598 33,708 74,957 65,456 78,494 1,495,658 June 152,789 654,433 348,017 114,565 71,964 64,140 229,903 150,356 90,543 83,505 75,598 221,873 2,257,686 July 105,782 388,537 121,370 98,212 47,665 56,868 165,619 73,337 37,577 81,115 63,574 78,314 1,317,970 August 139,303 374,970 108,115 88,644 48,388 79,218 207,021 73,731 39,690 82,284 98,181 72,185 1,411,730 September. 124,664 371,320 102,211 84,975 63,915 61,986 181,992 84,297 41,007 81,547 76,558 82,513 1,356,985 October... 106,449 361,698 101,998 93,261 63,598 67,561 284,410 76,931 40,590 90,376 81,354 85,638 1,453,864 November. 106,062 536,922 102,584 93,366 59,945 78,867 171,480 82,425 44,315 99,277 87,848 104,499 1,567,590 December., 338,117 1,096,954 422,911 320,733 227,150 210,917 410,937 254,759 95,298 223,470 190,322 381,243 4,172,811 Total 1,671,825 5,734,345 1,775,185 1,396,031 911,927 972,217 2,548,324 1,174,793 556,491 1,186,069 1,431,755 20,341,798 1 CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

236 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. Exhibit H.—RECEIPTS AND DISBURSEMENTS OF THE FEDERAL RESERVE BOARD. There is here given a statement of receipts and expenditures of the Federal Reserve Board in 1919. The total expenses of the Board for the year are shown on the detailed statement of commitments to have been $558,560.61. RECEIPTS. Assessments, 1919 $594, 668. 63 Bulletin, subscriptions to 3, 360.94 Reimbursements 28, 397. 26 Miscellaneous 5, 836. 85 Total $632, 263. 68 Deficiency, Jan. 1, 1919 6, 202. 21 Total available 626, 061.47 DISBURSEMENTS. By fiscal agent 524, 332.10 Auditor's settlements 61,015. 59 Total disbursements 585, 347. 69 Balance ''Expenses trading-with-the-enemy act, Federal Reserve Board," transferred to "Executive expenses, trading-with-the-enemy act'' 4. 62 585, 352. 31 Balance Dec. 31, 1919, with Treasurer of the United States to credit of— Federal Reserve Board 38, 926. 66 Fiscal agent 1, 782.50 40, 709.16 626,061.47 GENERAL STATEMENT. Total available 626, 061. 47 Reimbursable expenditures $24, 763. 29 Balance to credit reimbursable account 779.14 25,542.43 600,519. 04 Commitments for general expenses, 1919 558, 560. 61 Commitments, 1918, paid in 1919 25, 694. 66 Balance, ''Expenses trading-with-the-enemy act, Federal Reserve Board," transferred to "Executive expenses, trading-with-the-enemy act'' 4. 62 584,259.89 Unincumbered balance, Jan. 1, 1920 16, 259.15 Unpaid commitments, Dec. 31, 1919 23,670.87 Balance to credit reimbursable account 779.14 Unexpended balance 40, 709.16 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Detailed statement of commitments. January. F a e r b y ru . - March. April. May. June. July. August. Se b p e te r. m- October. No b v e e r. m - i j De b c e e r m . - Total. PERSONAL SERVICES. Board members and their staff $6,229.14 $6,315.84 $6,433.52 $6, 439.14 $6,391.50 $6,179.19 $6,274.15 $6,397.91 $6,390.44 $6,390.40 $7,183.96 '$7,613.78 $78,238.97 Secretary's office 3,764.99 3,790.00 3,594.01 3.59632 3,595 00 3,867.83 4,174.98 4,457.50 3,631.68 3,961.38 4,615 00 4,615 02 47,663.71 Counsel's office 1.563.32 1,983.00 2, 060.85 2^089.98 2, 090.00 2,090.01 2,520.52 2,631.67 2, 631.69 2,631-64 2,566 67 2,501.69 27,361.04 Division of operations and examination 5,284.70 5,091.66 5,120.86 5,224.98 5,224.99 5,225 03 5,807-20 6,018.33 6,201.70 6,301 63 6,314.99 6,501.71 68,317.78 Division of reports and statistics 3,694.11 3,902.35 4,149.62 4,290.79 4,296 51 4,596 05 4,765 99 5, 347.51 5.113.83 5,06100 5, 340 03 5, 485.07 56,042 86 Division of gold settlement '837.82 865.84 865.84 865 82 865.84 644.84 762.32 858.34 '858.34 858.32 858.34 941.67 10,083.33 Division of analysis and research 1,360.80 1,434.17 1,520.86 1,379.82 1,337.50 1,422 84 1,38394 1,059.17 1,297.52 1.714.70 1,891.09 2.078.35 17,880.76 Division of architecture 780.56 1,080-55 555.56 555.55 622.23 888.88 '888.90 7,150.01 Division of Federal Reserve issue and redemption 2, 526.99 2, 697.50 2,839.85 2,883.83 3,128.49 4,676.89 4,951.49 4,931.02 4,837.84 5, 432.35 3,057.66 i 5,99335 50,957.26 Messengers « 729.99 671.01 735-00 750.65 696.01 735 67 853.32 843.32 833 34 845.82 858.34 888.34 9, 440.81 Charwomen 77.13 78.00 78.00 78.00 78.00 78.00 96.00 96.00 96.00 96 00 96.00 81.05 1,028.18 Employees detailed to- National bank redemption agency, office of Treasurer of the United States 384.18 2,984.08 5,748.95 6,159.25 15,276.46 Redemption division, office of Comptroller of the Currency 1,389.55 2,747.39 4,136.94 Total. 26,068.99 26,829.37 27,398.41 28,379.89 28,784.39 30,071.91 32,145.46 33,263 00 133,165.45 37,166 2143,809.46 46,495.57 393,578.11 NONPERSONAL SERVICES. Transportation and subsistence: Board members and their staff 62.40 189 66 128.52 148. 22 552.11 12044 201.50 1.60 141.26 5509 168.9 392.90 2,162.69 Secretary's office 6.08 5.50 93.00 1.25 118.77 15.56 1641 I 11.25 267.82 Division of operations and examination 1,254.39 2,852 02 3,307.95 3, 230.86 2,801.41 3,150.46 2,809.62 1,710.37 I 2,624.98 3,214.43 1,818.65 1,910.51 30,685.65 Division of reports and statistics 30.31 70.36 100.67 Division of analysis and research 148.62 75 58 22 03 55 77 48.57 65.30 23.26 115.00 35 51 56.90 32.54 29.62 708.70 C M o e u s n se s n e g l' e s r o s ffice I j 5 00 "o"6n 5 00 "5*66 5 00 i 1 5 4 .8 0 1 0 '"h'.oo 5.66 2 1 1 8 . .7 5 5 6 2 1 4 2 . . 3 5 4 0 6 7 0 1 . . 7 2 1 5 Communication service: i Telephone j 209.60 167-41 160 92 189.34 194.35 223 57 210,54 226.83 204.14 232.22 228.97 229.66 2,477.55 Telegraph 142 06 244.45 215 06 276.93 239.97 255 54 279. 25 265.14 270.90 258.34 301.22 265 00 3,013.86 Postage 14.00 15 00 17 00 43 50 34.00 19.50 19.50 600 15 50 17.50 201.50 Printing, binding, etc 7,447.01 2,550 95 3, 239 57 2,312 35 2,185.30 1,85816 2,984.52 2,371.23 2.540.18 2. 515.65 3,397.77 3,387.47 36, 790.16 Contract repairs 3.60 8.00 3 60 55.20 3.12 375 19.30 17 10 I ' 26.88 85 64 14.10 1.75 242.04 Electricity (light and power) 35.20 3520 35.20 35 20 35.20 35.20 35.20 35.20 35.20 35.20 35 20 35 20 422.40 Steam (heat) 30.90 30.90 30.90 30.90 30.90 30.90 30.90 216.30 Other nonpersonal service 429.81 221.00 416.35 232.56 246.36 581.48 284.33 405.95 I 295.02 364.22 355.01 397.27 4,229.36 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Detailed statement of commitments—Continued. to 00 January. Fe a b ry ru . - March. April. May. June. July. August. Se b p e te r. m- October. No b v e e r. m- D b ec e e r m . - Total. Supplies: Stationery $492.23 $300.85 $569.54 $312.55 $321.76 $803.80 $977.95 $413.11 $347.82 $829.30 $427.49 $453.97 $6,250.37 Periodicals 23.35 fc 36.70 12.75 36.00 9.57 97.50 18.00 11.50 29.50 72.70 372.15 719.72 Other 247.84 109.70 96.15 216.06 663.81 191.14 61.37 38.24 229.45 73.57 130.17 215.65 2,273.15 Equipment: Furniture and office.. 223.30 804.79 408.43 372.35 1 640.36 682.57 681.00 666.38 923.11 930.63 1,714.87 1,239.08 10,286.87 Books . 3.37 40.75 62.50 3.47 26 41 11-12 53.00 18.90 2.98 55.87 82.27 2, 705.47 3,066.11 Rent .. .. . 571.95 564.03 593.76 692.42 692.42 692.42 739.56 814.56 814.56 814.56 814.56 825.56 8,630.36 Division of foreign exchange (including n salaries) 10,020.53 9,381.43 8,198.98 7,589.76 6,555.34 5,778.48 3,485.58 953.07 142.09 52,105.26 Total 21,371.24 17,638.92 17,524.21 15,887.94 16,251.24 14,617.08 13,012.85 8,111.59 8,681.33 9,658.38 9,681.22 12,546.50 164,982.50 Grand total . ..47, 440.2391,909.52 44,922.62 44,267.83 45,035.63 44,688.99 45,158.31 41,374.59 41,846.78 46,824.59 53, 490.68 59,042.07 558,560.61 H W o > Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT 1—STATE BANK MEMBERSHIP. 239 Exhibit I.—STATE BANKS AJNli TKUST COMPANIES ADMITTED. The following is a list of State banks and trust companies members of the Federal Reserve system, showing capital, surplus, and total resources as compiled from figures available on December 31, 1919. One thousand one hundred and eighty-one State institutions are now members of the system, having a total capital of $421,653,766, total surplus of $447,553,603, and total resources of $9,608,710,574. Surplus.1 res T ou o r t c al es.l DISTRICT NO. I. CONNECTICUT. New Britain—New Britain Trust Co $400,000 $200,000 $4,954,861 New Haven—Union & New Haven Trust Co. 650,000 650,000 4,845,388 South Manchester—Manchester Trust Co 100,000 50,000 2,057,737 Waterbury—Colonial Trust Co 400,000 500,000 8,569,696 Banffor—Merrill Trust Co 300,000 400,000 7,401,911 Portland—Fidelity Trust Co.. 400,000 400,000 14,501,467 MASSACHUSETTS. Arlington—Menotomy Trust Co 125,000 25,000 1,634,136 Boston- American Trust Co L, 000,000 2,000,000 29,309,782 Beacon Trust Co 600,000 1,200,000 22,468,280 Commonwealth Trust Co L 000,000 500,000 33,458,171 International Trust Co L, 500,000 1,500,000 32,342,230 Liberty Trust Co 200,000 300,000 7,125,776 Market Trust Co 400,000 100,000 2,568,339 Metropolitan Trust Co 500,000 400,000 9,250,740 New England Trust Co [,000,000 2,000,000 28,727,006 Old Colony Trust Co •,000,000 9,000,000 164,351,082 State Street Trust Co 1,000,000 2,500,000 41,439,721 United States Trust Co L, 000,000 1,000,000 18,906,488 Cambridge- Charles River Trust Co 200,000 200,000 4,345,827 Harvard Trust Co 200,000 100,000 5,206,079 Fitchburg—Fitchburg Bank & Trust Co 500,000 350,000 5,196,119 Gloucester—Gloucester Safe Deposit & Trust Co 200,000 200,000 4,842,245 Greenfield—Franklin County Trust Co 200,000 100,000 2,905,766 Holyoke—Hadley Falls Trust Co 500,000 250,000 6,110,352 Lawrence—Merchants Trust Co 300,000 150,000 7,248,243 Lynn—Security Trust Co 200,000 200,000 8,416,446 New Bedford—New Bedford Safe Deposit & Trust Co. 200,000 300,000 5,760,592 Newton—Newton Trust Co 400,000 400,000 7,030,205 Norwood—Norwood Trust Co 200,000 8,000 2,887,604 Salem—Naumkeag Trust Co 250,000 150,000 5,348,903 Waltham—Waltham Trust Co 200,000 100,000 4,806,562 Winchester—Winchester Trust Co 100,000 25,000 983,962 Worcester—Worcester Bank & Trust Co .,250,000 500,000 30,254,870 RHODE ISLAND. Providence- Industrial Trust Co 3,000,000 4,000,000 80,817,308 Rhode Island Hospital Trust Co 3,000,000 3,500,000 61,602,439 Union Trust Co 1,000,000 500.000 14,643,505 Total. 30,475,000 33,758,000 692,319,838 DISTRICT NO. 2. CONNECTICUT. Bridgeport—Bridgeport Trust Co , 1,000,000 300,000 10,060,300 South Norwalk—South Nor walk Trust Co. 200,000 131,000 3,404,025 NEW JERSEY. Asbury Park—Seacoast Trust Co 100,000 75,000 2,213,172 Bayonne—Bayonne Trust Co 200,000 150.000 5,248,516 Bloomfield—Bloomfield Trust Co 200,000 100,000 4,286,866 Boonton—Farmers & Merchants Bank. 75,000 25,000 639,839 Cranford—Cranford Trust Co 100,000 20,000 1,801,598 i A mounts shown represent capital, surplus, and total resources as of Nov. 17,1919, except in the case of banks admitted since that date, for which figures as of the date of admission were used. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

240 ANNUAL. REPORT OF THE FEDERAL RESERVE BOARD. Total resources. DISTRICT NO. 2—Continued. NEW JERSEY—continued. East Orange — Savings Investment & Trust Co $498,200 $300,000 $8,385,242 East Orange Bank 150,000 25,000 1,902,757 Elizabeth—Elizabethport Banking Co 250.000 50,000 4,739,350 Franklin—Sussex County Trust Co 100,000 ! 20,000 402,030 Glen Ridge—Glen Ridge Trust Co 100,000 20,000 1,193,377 Hackensack—Peoples Trust & Guaranty Co 500,000 300,000 6,893,777 Hoboken—Jefferson Trust Co 200,000 50,000 4,764,214 Jersey City- Commercial Trust Co. of New Jersey 1,000,000 1,500,000 34,764,301 The New Jersey Title Guarantee &'Trust Co 1,000,000 1,000,000 17,333,216 Montclair— Bank of Montclair 100,000 i 80,000 3,047,186 Montclair Trust Co 300,000 I 100,000 5,100,725 Morristown—Morristown Trust Co 600,000 ! 300,000 9,443,058 Newark— Federal Trust Co 1,000,000 I 500,000 12,350,793 Ironbound Trust Co 200,000 ; 100,000 9,048,197 Nutley—Bank of Nutley 100,000 j 35,000 1,538,980 Orange—Trust Co. of Orange 100,000 I 25,000 1,162,945 Passaic— Passaic Trust & Safe Deposit Co 200,000 100,000 8,945,909 Peoples Bank & Trust Co • 200,000 300,000 6,815,993 Paterson—Hamilton Trust Co 500,000 400,000 12,351,991 Plainfield—Plainfield Trust Co 300,000 300,000 9,010,872 Rahway—Rahway Trust Co 100,000 j 25,000 1,087,750 Ridgefield Park—Ridgefield J5ark Trust Co 100,000 ! 25,000 1,579,494 Rutherford—Rutherford Trust Co 100,000 I 25,000 1,487,275 Westfield— Peoples Bank & Trust Co 100,000 I 80,000 2,346,002 Westfield Trust Co 100,000 20,000 2,768,934 West Hoboken—Hudson Trust Co. of West Hoboken.. 1,000,000 1,000,000 26,516,497 NEW YORK. Adams—Citizens Trust Co 140,000 i 75,000 1,374,760 Amityville—Bank of Amityville 25,000 50,000 716,225 Amsterdam—Montgomery County Trust Co 200,000 1 100,000 3,004,377 Batavia—The Bank of Gehesee 100,000 ! 100,000 1,454,449 Binghamton— Peoples Trust Co 500,000 i 100,000 5,675,099 Brooklyn— Brooklyn Trust Co L, 500,000 2,066,861 49,419,480 Franklin Trust Co 1,000,000 1,000)000 34,543,434 Manufacturers Trust Co L, 000.000 I 500,000 44,559,342 Mechanics Bank L, 600,000 j 800,000 43,857,404 Peoples Trust Co L, 200,000 j1,200,000 37,824,472 Buffalo- Bank of Buffalo J, 500,000 j1,000.000 47,969,225 Buffalo Trust Co 500.000 I 500,000 16,602,852 Citizens Commercial Trust Co L,250;000 1,250,000 28,472,624 Fidelity Trust Co L, 000,000 1,000,000 22,066,511 Liberty Bank of Buffalo L500,000 I 1,000,000 37,048,764 Peoples Bank of Buffalo 600,000 I 600,000 17,946,195 Canisteo—First State Bank 50,000 ' 25,000 661,243 Cape Vincent—Citi/ens Bank of Cape Vincent 50.000 8,000 170,6C6 Chatham—State Bank of Chatham 50,000 50,000 1,527,112 East Aurora- Bank of East Aurora 100,000 25,000 1,498,420 Erie Count.: Trust Co 100,000 37,500 1,283,367 Elmira—Chennme Canal Trust Co 600,000 400,000 8,679,382 Endicott—State Bank of Endicott 50,000 10,000 60,000 Floral Park — i loral Park Bank 25,000 25,000 1,037,760 Geneva—Geneva Trust Co 250,000 225.000 4,135,279 Gloversville—Trust Co. of Fulton County 200,000 ioo;ooo 1,309,260 Hammondsport—Bank of Hammond sport 50,000 50,000 1,161,633 Hicksville—Bank of Ficksville 25,000 80,000 1,294,964 Ithaca—Ithaca Trust Co 200,000 100,000 3,512,582 Johnson City—Workers Trust Co 100,000 25,000 4,194,344 Katonah—Northern Westchester Bank 50,000 25,000 336,550 Kingston—Kingston Trust Co 150,000 60,000 1,626,614 Little Falls—Herkimer County Trust Co 350,000 350,000 5,374,090 Millbrook—Bank of Millbrook". 50,000 50,000 796,138 Mineola—Nassau County Trust Co 100,000 75,000 2,482,330 New York— Bankers Trust Co 000,000 11,250,000 380,486,721 Bank of America 500,000 6,000,000 92,023,675 Bank of United States 000,000 250,000 28,964,148 Central Union Trust Co 500,000 15,000,000 256, 750, 201 Columbia Bank 000,000 500,000 27,339,047 Columbia Trust Co 000,000 6,000,000 118,968,522 Commercial Exchange Bank 200,000 700,000 11,065,899 Digitized for FCRoAmSmEoRnw ealth Bank of the City of New York. 400,000 600,000 12,125,436 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT I—STATE BANK MEMBERSHIP. 241 Total DISTRICT NO. 2—Continued. NEW YORK—continued. New York—Continued. Continental Bank $1,000,000 $500,000 $27,236,031 Corn Exchange Bank 4,200,000 6,800,000 224,393,312 Equitable Trust Co 6,000,000 12 000,000 287,206,150 Fanners Loan & Trust Co 5,000,000 10,000,000 194,428,340 Fidelity Trust Co 1,000,000 1,000,000 17,596,219 Fifth Avenue Bank 500,000 2.000,000 27.700,896 Fulton Trust Co w 500,000 250,000 10,497,592 Guaranty Trust Co 25,000,000 25,000,000 883,900,180 Irving Trust Co 3,000,000 1,000,000 83,625,357 Lincoln Trust Co 1,000,000 600,000 29,255,250 Manhattan Co 2,500,000 7,000,000 179,024,483 Mercantile Trust Co 1,000,000 500,000 21,502,713 Metropolitan Bank 2,000,000 2,000,000 58,472,268 Metropolitan Trust Co. of the Citv of New York 2,000,000 4,000,000 50,761,526 Mutual Bank 200,000 400,000 15,201,059 New Netherland Bank 600,000 650,000 11,369,059 New York Trust Co 3,000,000 10,000,000 105,554,951 Pacific Bank 500,000 1,000,000 32,637.687 United States Mortgage & Trust Co 2,000,000 4,000,000 80,404,420 United States Trust Co. of New York 2,000,000 12,000,000 63,406,235 W. R. Grace & Co.'s Bank. 500,000 700,000 10,381,084 Yorkville Bank of New York City 200,000 400,000 14,405,985 Niagara Falls—Power City Bank 300,000 300,000 8,327,708 Nya'ck—Rockland County Trust Co 100,000 25,000 2,460,182 Ogdensburg—St. Lawrence Trust Co 100,000 25,000 1,538,058 Olean—Olean Trust Co 100,000 20,000 1,370,281 Oneida—Madison County Trust & Deposit Co 200,000 120,000 3,147,374 Orchard Park—Bank of Orchard Park 30,000 6,000 406,844 Oyster Bay—Oyster Bay Bank 50,000 50,000 1,203,568 Perry—Citizens" Bank. .* 50,000 50,000 1,279,726 Port Chester—Mutual Trust Co. of Westchester County. 300,000 60,000 2.866,488 Rochester—Alliance Bank 1,000,000 500,0C0 19)300,375 Rome—Rome Trust Co 300,000 60,000 3,988,319 Schenectady—Sehenectady Trust Co 300,000 62,500 8,527,020 Stony Brook—Bank of Suffolk County 25,000 15,000 451,752 Syracuse— Citv Bank Trust Co 1,500,000 658,000 21,402,905 First Trust & T eposit Co 2,500,000 1,000,000 42,227,596 Syracuse Trust Co 1,500,000 750,000 28,911,917 Trumansburg—State Bank of Trumansburg 25,000 15,000 399,713 Utica- Citizens Trust Co 500,000 500,000 15,614,564 Oneida County Trust Co 250,000 250,000 2,904,226 Utica Trust & I eposit Co 800,000 600,000 14.976,897 Warsaw—Trust Co. of Wyoming County 100,000 20.000 789,466 Watertown—Northern New York Trust Co 400,000 400,000 8, 638,980 Westbury—Bank of Westbury 25,000 5,000 582, 214 White Plains—County Trust Co 100,000 50,000 3,248,794 Total. 138, 803, 200 168,184, 8614,207,562,560 DISTRICT NO. 3. DELAWARE. Mil ford—Milford Trust Co 1,077,829 Wilmington- Equitable Trust Co 5,477,122 Security Trust & Safe Deposit Co 7,083,707 Wilmington Trust Co 17,874,975 NEW JERSEY. Atlantic City- Bankers Trust Co 100,000 546,534 Equitable Trust Co 200,000 100,000 3,166,687 Burlington—Burlington City Loan & Trust Co 100,000 100,000 1,748,440 Camden—Camden Safe Deposit & Trust Co 500,000 800,000 12,657,162 Gloucester City—Gloucester City Trust Co 100,000 30,000 1,176,581 Princeton—Princeton Bank & Trust Co 100,000 150,000 2,272,164 Riverside—Riverside Trust Co 100,000 100,000 2,039,889 Swedesboro—Swedesboro Trust Co 100,000 20,000 945,662 PENNSYLVANIA. Chester—Cambridge Trust Co 250,000 175,000 6,036,853 Dubois—Union Banking & Trust Co 125,000 200,000 2,173,667 Harrisburg—Dauphin Deposit Trust Co 300,000 300,000 4,071,310 Hazleton— Markle Banking & Trust Co 100,000 500,000 4,918,393 Peoples Savings & Trust Co 125,000 75,000 2,933,057 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Total Capital. Surplus. resources. DISTRICT NO. 3—Continued. PENNSYLVANIA—continued. Honesdale—Wayne County Savings Bank $200,000 $325,000 $4,032,119 Huntingdon—Grange Trust Co 125,000 12,500 706,752 Lewistown—Lewistown Trust Co 125,000 25,000 752,153 Lykens—Miners Deposit Bank 50,000 110,000 857,854 Philadelphia- Colonial Trust Co 300,000 275,000 5,708,643 Commercial Trust Co 2,000,000 2,750,000 24,405,222 Fidelity Trust Co 5,000,000 16,000,000 61,681,333 Girard Trust Co 2,500,000 7,500,000 57,861,550 Logan Trust Co 1,000,000 250,000 13,967,406 Pennsylvania Co. for Insurance on Lives and Granting Annuities 2,000,000 5,000,000 39,201,186 Philadelphia Trust Co 1,000,000 4,000,000 26,203,174 Provident Life & Trust Co. of Philadelphia 2,000,000 5,000,000 119,897,970 Rittenhouse Trust Co 250,000 50,000 2,616,743 West Philadelphia Title & Trust Co 500,000 500,000 8,361,313 Reading—Berks County Trust Co 250,000 155,000 3,917,502 Schuylkill Haven—Schuylkill Haven Trust Co 125,000 55,000 1,307,027 Scranton—American Bank of Commerce 300,000 60,000 1,460,189 Wilkes-Barre—Dime Deposit Bank 200,000 150,000 1,991,776 Williamsport— Northern Central Trust Co 500,000 200,000 4,465,701 Susquehanna Trust & Safe Deposit Co 400,000 300,000 3,209,687 Williamstown—Williams Valley Bank 50,000 47,000 511,837 Total 23,225,000 47,102,000 359,317,169 DISTRICT NO. 4. KENTUCKY. Brooksville—Farmers Equity Bank 25,000 15,000 332,151 Georgetown—Farmers Bank & Trust Co 105,000 60,000 1,006,468 Independence—Bank of Independence 40,000 8,000 523,837 Lexington- Guaranty Bank & Trust Co 150,000 30,000 1,758,857 Security Trust Co 500,000 150,000 2,451,414 Richmond—State Bank & Trust Co 150,000 50,000 906,864 OHIO. Akron— Central Savings & Trust Co 500,000 500,000 15,094,027 Depositors Savings & Trust Co 300,000 300,000 7,707,219 Firestone Park Trust & Savings Bank 200,000 75,000 4,101,875 Peoples Savings & Trust Co 200,000 100,000 7,325,259 Alliance- Alliance Bank Co 150,000 150,000 4,158,486 City Savings Bank & Trust Co 100,000 100,000 2,944,665 Apple Creek—Apple Creek Banking Co 25,000 15,000 321,510 Barberton—Peoples Savings & Banking Co 100,000 25,000 1,814,585 Bridgeport—Bridgeport Bank & Trust Co 75,000 40,000 820,623 Buckeye City—Commercial & Savings Bank Co. 25,000 3,250 233,167 Canton—Dime Savings Bank Co 200,000 140,000 4,061,570 Chagrin Falls—Chagrin Falls Banking Co 100,000 40,000 1,153,896 Cincinnati- Brighton Bank& Trust Co 200,000 200,000 6,895,844 Provident Savings Bank & Trust Co 1.400,000 1,000,000 16,604,806 Union Savings Bank & Trust Co 1,000,000 2,000,000 23,664,396 Western Bank & Trust Co 500,000 500,000 12,768,736 Cleveland- Citizens Savings & Trust Co 4,000,000 4,000,000 79,516,947 Cleveland Trust Co 3,000,000 3,000,000 86.997,285 Guardian Savings & Trust Co 3,000,000 3,000,000 78,022,394 The Pearl Street Savings & Trust Co 600,000 400,000 14,666,924 Superior Savings & Trust Co 500,000 1,000,000 18,032,880 United Banking & Savings Co 1,000,000 400,000 17,127,309 Columbiana—Union Banking Co 50,000 25,000 716,072 Columbus—Citizens Trust & Savings Bank 700,000 150,000 5,872,965 Conneaut—Conneaut Mutual Loan & Trust Co.. 100,000 70,000 1,850,737 Cuyahoga Falls- Citizens Bank 50,000 5,500 635,936 Cuyahoga Falls Savings Bank Co 100,000 32,000 1,743,671 Dayton—Dayton Savings & Trust Co 575,000 506,250 17,061,785 Eldorado—The Farmers State Bank 35,000 2,675 424,166 Frazeysburg—Peoples Bank Co 25,000 38,000 607,352 Geneva—Geneva Savings Bank Co 100,000 74,000 1,371,871 1 Exclusive of insurance assets of $101,408,940. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT I STATE BANK MEMBERSHIP. 243 Capital. Surplus. Total resources. DISTRICT NO. 4—Continued. OH io—continued. Gibsonburg— Gibsonburg Banking Co $50,000 $18,500 $822,950 Home Banking Co 25,000 10,000 858,167 Hillsboro—Hillsboro Bank & Savings Co 50,000 15,000 586,036 Hubbard—Hubbard Banking Co 50,000 25,000 1,088,823 Lodi—Lodi State Bank 40,000 60,000 774,721 McCutchenville—Farmers Bank 30,000 900 126,260 Mansfield—Farmers Savings & Trust Co 160,725 160,725 1,718,627 Massillon—Ohio Banking & Trust Co 150,000 37,500 1,723,533 Metamora—Farmers & Merchants Bank Co 25,000 5,500 348,137 Middlefield—Middlefield Banking Co 25,000 25,000 442,778 Milan—The Farmers & Citizens Banking Co 25,000 io;ooo 471,666 Minerva—Minerva Savings & Trust Co 50,000 50,000 1,576,234 Minster—Minster State Bank 25,000 25,000 442,510 Newark—Newark Trust Co 200,000 125,000 2,868,761 Orrville—The Orrville Savings Bank 50,000 45,000 853,318 Pandora—Farmers Bank Co 25,000 ,500 206,657 Pemberville— Pemberville Savings Bank Co 25,000 5,000 539,684 Peninsula—Peninsula Banking Co 25,000 5,000 239,262 Portsmouth—Security Bank 150,000 250,000 2,437,502 Rittman—Eittman Savings Bank 25,000 8,500 427,930 Rossford—Rossford Savings Bank 50,000 5,000 328,297 St. Marys—Flome Banking Co 100,000 22,000 1,086,137 Shady side—The Shady side Bank 35,000 3,900 290,105 Shelby—Citizens Bank 100,000 50,000 1,260,124 Shiloh—Shiloh Savings Bank Co 25,000 29,000 408,955 Spencer—Spencer State Bank 40,000 1,000 319,573 Steubenville— Steubenville Bank & Trust Co 178,100 81,860 2,155,494 Union Savings Bank & Trust Co 250,000 250,000 3,717,300 Struthers—Struthers Savings & Banking Co 50,000 50,000 1,653,548 Toledo— The Commercial Savings Bank & Trust Co... 200,000 100,000 7,739,953 Guardian Trust & Savings Bank 200,000 200,000 6,962,639 Upper Sandusky—Citizens Savings Bank 50,000 30,000 804,095 Vermilion—Erie County Banking Co 50,000 10,000 603,236 Wakeman—Wakeman Bank Co 25,000 10,000 304,701 Warren—Union Savings & Trust Co 300,000 300,000 5,120,770 Wellington— 1 irst Wellington Bank 85,000 85,000 1,400,982 West Lafayette—West Lafayette Bank Co 100,000 50,000 1,255,579 West Milton—Citizens State Bank Co 30,000 6,000 292,217 Youngstown— City Trust & Savings Bank 200,000 200,000 5,862,887 Dollar Savings & Trust Co ,500,000 500,000 21,204,265 PENNSYLVANIA. Ambridge—Ambridge Savings & Trust Co 125,000 50,000 2,180,244 Beaver—Beaver Trust Co 300,000 100,000 1,610,362 Beaver Falls—Federal Title & Trust Co 200,000 40,000 1,475,760 Bellevue— Bellevue Realty Savings & Trust Co. 125,000 50,000 1,149,051 Erie—Security Savings & Trust Co 200,000 350,000 6,480,899 Greensburg—Merchants Trust Co 188,600 100,000 1,825,304 Meadville—Crawford County Trust Co 125,000 20,000 1,752,935 New Castle—Lawrence Savings & Trust Co 300,000 300,000 4,096,960 Pittsburgh- Allegheny Trust Co 700,000 500,000 5,395,203 City Deposit Bank 200,000 800,000 11,130,344 Colonial Trust Co 1,600,000 2,600,000 23,240,973 Commonwealth Trust Co ., 500,000 1,000,000 12,024,026 Oakland Savings & Trust Co 200,000 200,000 6,911,479 Pittsburgh Trust Co !, 000,000 1,000,000 24,023,411 Potter Title & Trust Co 500,000 75,000 4,620,382 Union Trust Co ,500,000 34,500,000 140,969,999 Woodlawn—Woodlawn Trust Co 125,000 75,000 1,770,784 WEST VIRGINIA. Moundsville—Marshall County Bank. 150,000 40,000 1,214,065 Wheeling- Security Trust Co 300,000 200,000 2,919,582 Wheeling Bank & Trust Co 160,000 520,000 5,487,985 Total. 36,152,425 63,597,560 782,901,856 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

244 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Total resources. DISTRICT NO. 5. DISTRICT OF COLUMBIA. Washington—Continental Trust Co $1,000,000 $5,466,223 MARYLAND. Baltimore— American Bank 300,000 4,358,195 Baltimore Commercial Bank 500,000 5,131,619 Baltimore Trust Co 1,000,000 19,733,250 Maryland Trust Co 1,000,000 12,396,838 Gwynn Oak Junction—Liberty Bank of Baltimore County 25.000 6,000 497,104 Hamilton—Hamilton Bank 30,000 12,500 648,367 Overlea—Overlea Bank 50,000 20,000 845,245 NORTH CAROLINA. Asheville—Battery Park Bank 100,000 100,000 3,197,831 Charlotte- American Trust Co 1,050,000 375,000 13,742,624 Independence Trust Co 500,000 250,000 3,965,665 High Point—Bank of Commerce 100,000 16,000 1,085,707 New Bern- New Bern Banking & Trust Co 100,000 25,000 1,704,486 Peoples Bank 100,000 50,000 2,335,008 Winston-Salem—Wachovia Bank & Trust Co. 1,250,000 750,000 31,959,672 SOUTH CAROLINA. Charleston—Carolina Savings Bank 200,000 150,000 3,582,804 Cheraw— Bank of Cheraw 110,000 50,000 978,783 Merchants & I1 armers Bank 100,000 10,000 670,038 Chester—Commercial Bank 100,000 75,000 1,403,583 Darlington—Bank of Darlington 100,000 50,000 2.129,542 Florence—Commercial & Savings Bank 125,000 30,000 1,499,196 Georgetown— Bank of Georgetown 100,000 100,000 1,251,562 Peoples Bank of Georgetown 93,300 30,490 673,121 Harts ville—Bank of Hartsville 75,000 42,500 1,653,165 Rock Hill—Citizens Bank & Trust Co.. 100,000 5,600 557,391 St. Matthews—The Home Bank 25,000 25,000 427,826 Sumter—Peoples Bank 100,000 23,000 697,320 Union—Nicholson Bank & Trust Co 75,000 25,000 1,045,286 Westminster—Westminster Bank 100,000 25,000 1,206,884 Woodruff—Bank of Woodruff 40,700 10,500 554,260 VIRGINIA. Blackstone—Citizens Bank 100,000 717,312 Cambria—Cambria Bank (Inc.) 30,000 269,742 Charlottesville—Commerce Bank & Trust Co 100,000 153,389 Chase City—Peoples Bank & Trust Co. 100,000 656,424 Christiansburg—Bank of Christiansburg 34,000 1,186,950 Emporia— Greensville Bank 900,446 Merchants & Farmers Bank 636,629 Harrisonburg—Peoples Bank of Harrisonburg 827,950 Norfolk- Citizens Bank of Norfolk '207,554 Marine Bank 2,464,117 Richmond— Bank of Commerce & Trusts 5,394,668 The Savings Bank of Richmond 2,454,672 Union Bank of Richmond 3,434,367 WEST VIRGINIA. Charleston—Kanawha Valley Bank Franklin—Franklin Bank Grafton—Grafton Banking & Trust Co Total. DISTRICT NO. 6. ALABAMA. Birmingham- American Trust & Savings Bank... 9,723,313 Birmingham Trust & Savings Bank 14,582,549 Carrollton—Pickens County State Bank 210,698 Cullman—Alabama Bank & Trust Co 532,888 Eufaula—Bank of Eufaula 705,760 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT I STATE BANK MEMBERSHIP. 245 Total resources. DISTRICT NO. 6—Continued. ALABAMA—continued. Huntsville—Farmers State Bank $100,000 $35,000 $942,062 Marion—Marion Central Bank 50,000 100,000 644,709 Mobile- Merchants Bank 200,000 300,000 7,228,622 Peoples Bank 200,000 200,000 6,092,730 Union Commercial Bank 200,000 6,595 1,280,100 Montgomery—Merchants Bank of Montgomery. 100,000 20,000 1,329,985 Union Springs—American Bank 50,000 5,000 299,467 FLORIDA. D eland—Volusia County Bank 100,000 100,000 1,624,850 Jacksonville—American Trust Co 200,000 20,000 1,063,297 Leesburg—Leesburg State Bank 30,000 11,000 521,907 Miami—The Southern Bank & Trust Co 100,000 1,379,280 Orlando—Bank of Orange & Trust Co 100,000 20,000 839,270 Tallahassee—The Exchange Bank 50,000 4,000 300,051 Tampa—Citizens American Bank & Trust Co. 250,000 500,000 6,150,578 Winter Park—Union State Bank 30,000 1,500 223,308 GEORGIA. Athens—American State Bank 100,000 20,000 941,332 Atlanta- Atlanta Trust Co 1,000,000 100,000 3,562,986 Central Bank & Trust Corporation. 1,000,000 300,000 16,853,709 Georgia Savings Bank & Trust Co.. 200,000 100,000 1,776,175 Trust Co. of Georgia 1,000,000 1,000,000 6,466,051 Brunswick— Brunswick Bank & Trust Co 100,000 90,000 1,854,970 Glynn County Bank 100,000 20,000 1,026,974 Calhoun—Peoples Bank 55,000 11,000 854,130 Camilla—Bank of Camilla 50.000 50,000 567,131 Canon—The Canon Bank 25,000 12,500 154,432 Cave Spring—Bank of Cave Spring 25,000 26,000 313,576 Commerce—Northeastern Banking Co.. 100,000 50,000 1,160,960 Grayson—Bank of Grayson 40,000 7,750 247,223 Hart well—Hart well Bank 60,000 20,000 764,148 Jackson—Jackson Banking Co 50,000 10,000 417,960 Louisville—Bank of Louisville 25,000 55,000 485,211 Metter—Citizens Bank 30,000 20,000 314,828 Sardis—Peoples Bank 25,000 6,000 192,436 Sasser—Bank of Sasser 25,000 25,000 194,487 Savannah— American Bank & Trust Co 200,000 10,500 1,054,669 Citizens & Southern Bank 2,000,000 2,500,000 55,578,064 Citizens Trust Co 200,000 50,000 1,095,031 The Hibernia Bank of Savannah... 200,000 200,000 7,503,628 Mercantile Bank & Trust Co 200,000 20,000 1,522,067 Savannah Bank & Trust Co 700,000 700,000 11,347,996 West Point—Citizens Bank 50,0C0 1,000 415,282 Winder—Farmers Bank 50,000 2,500 501,961 Winterville—Pittard Banking Co 25,000 11,000 201,272 LOUISIANA. Baton Rouge—Union Bank & Trust Co 150,000 2,973,749 Gretna—Jefferson Trust & Savings Bank 50,000 4,200 578,610 Iota—Bank of Iota • 25,000 7,500 446,061 New Orleans- American Bank & Trust Co 200,000 20,000 750,341 Canal-Commercial Trust & Savings Bank 4,000,000 1,500,000 64,329,856 Citizens Bank & Trust Co. of Louisiana 400,000 150,000 7,692,682 Hibernia Bank & Trust Co 2,000,000 2,500,000 67,538,742 Interstate Trust & Banking Co 750,000 500,000 12,795,559 Liberty Bank & Trust Co 200,000 10,000 1,028,996 Marine Bank & Trust Co 800,000 217,400 17,832,338 Pan-American Bank & Trust Co 800,000 500,000 7,350,868 New Roads—Pointe Coupee Trust & Savings Bank. 60,000 1,800 319,647 MISSISSIPPI. Laurel—Commercial Bank & Trust Co. 100,000 25,000 1,564,741 Summit—Union Bank of Pike 25,000 12,000 266,499 TENNESSEE. Chattanooga—Chattanooga Savings Bank. 750,000 225,000 6,291,304 Nashville—Bank of Tennessee 200,000 50,000 2,340,995 Total 21,216,000 13,363,245 367,145,101 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

246 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. ; Capital. Total resources. DISTRICT NO. 7. Auburn—Auburn State Bank $25,000 $25,000 $628,289 Barrington—First State Bank 50,000 10,000 450,056 Bloomington—State Bank of Bloomington 100,000 150,000 2,155,341 Chicago- Austin State Bank 200,000 65,000 4,348,870 Capital State Savings Bank 200,000 20,000 1,761,225 Central Trust Co. of Illinois 6,000,000 1,000,000 73,572,011 Chicago Trust Co 1,000,000 300,000 12,380,096 Depositors State Bank 300,000 100,000 4,862,887 First Trust & Savings Bank 5,000,000 5,500,000 90,329,060 Foreman Brothers Banking Co 1,500,000 1,500,000 30,287,496 Great Lakes Trust Co 3,000,000 600,000 9,734,107 Harris Trust & Savings Bank 2,000,000 3,000,000 38,644,349 Home Bank & Trust Co 300,000 75,000 4,918,706 Hyde Park State Bank 200,000 50,000 2,934,437 Illinois Trust & Savings Bank 5,000,000 10,000,000 141,144,803 Kasper State Bank 500,000 300,000 10,319,227 Madison & Kedzie State Bank 200,000 50,000 2,930,597 Mechanics & Traders State Bank 200,000 50,000 2,648,821 Mercantile Trust & Savings Bank 250,000 75,000 5,158,154 Merchants Loan & Trust Co 5,000,000 9,000,000 137,569,158 Noel State Bank 300,000 100,000 4,451,032 Northern Trust Co 2,000,000 3,000,000 44,375,938 North Side State Savings Bank 200,000 20,000 2,650,153 Northwestern Trust & Savings Bank 600,000 150,000 13,681,848 Second Security Bank 200,000 100,000 3,356,262 Security Bank of Chicago 400,000 250,000 6,541,206 Standard Trust & Savings Bank 1,000,000 500,000 12,045,797 State Bank of Chicago.. ^ 1,500,000 4,000,000 44,288,118 Union Trust Co 1,500,000 2,000,000 49,883,354 United State Bank of Chicago 200,000 30,000 1,339,094 Cicero—Western State Bank 100,000 25,000 1,518,617 Des Plaines—Des Plaines State Bank 50,000 35,000 761,804 Elizabeth—Elizabeth State Bank 40,000 15,600 549,781 Elmhurst—Elmhiirst State Bank 60,000 25,000 959,369 Eureka—Farmers State Bank 100,000 5,000 696,092 Evanston— Evanston Trust & Savings Bank 100,000 10,600 1,276,515 State Bank & Trust Co..' 300,000 300,000 6,017,898 Fulton—Whiteside County State Bank 50,000 5,500 * 513,128 Geneva—State Bank of Geneva 50,000 10,000 694,123 Hinsdale—Hinsdale State Bank 50,000 25,000 592,563 Joliet— Commercial Trust & Savings Bank 100,000 5,000 1,098,002 Joliet Trust & Savings Bank 100,000 35,000 1,059,790 Kewanee—Union State Savings Bank & Trust Co. 150,000 25,000 1,637,238 La Grange—La Grange State Bank 50,000 25,000 1,272,475 Magnolia—First State Bank 25,000 5,000 233,974 Marshall—Marshall State Bank 60,000 5,000 359,215 Martinsville—Martinsville State Bank 50,000 20,000 491,042 Matteson—First State Bank 25,000 10,000 160,917 Mattoon—Central Illinois Trust & Savings Bank.. 100,000 75,000 1,089,851 Moline— Moline Trust & Savings Bank 225,000 85,000 3,964,545 Peoples Savings Bank & Trust Co 250,000 200,000 6,254,758 State Savings Bank & Trust Co 300,000 165,000 5,560,396 Mount Carroll—Carroll County State Bank 50,000 35,000 1,075,196 Oak Park Oak Park Trust & Savings Bank 200,000 50,000 3,120,557 Suburban Trust & Savings Bank 100,000 10,000 667,018 Oswego—Oswego State Bank 50,000 10,000 421,733 St. Charles—Stewart State Bank 100,000 50,000 1,297,817 Shannon—State Bank of Shannon 25,000 18,500 419,363 Springfield—Ridgely Farmers State Bank 600,000 150,000 7,509,719 Sycamore—Pierce Trust & Savings Bank..' 100,000 75,000 969,731 Wenona—First State Bank 50,000 35,000 635,793 INDIANA. Angola—Steuben County State Bank 40,000 10,000 230,669 Bargersville—Farmers State Bank 25,000 16,000 298,085 Colfax—Farmers State Bank 25,000 2,000 209,370 Connersville—Fayette Bank & Trust Co. 400,000 35,100 2,763,242 Cromwell—Sparta State Bank 27,500 163,885 Elkhart—St. Joseph Valley Bank 150,000 75,000 3,797,616 Hillsboro—Hillsboro State Bank 25,000 7,000 229,545 Jamestown—Citizens State Bank 30,000 7,500 432,756 Kentland— Discount & Deposit State Bank 70,000 45,000 662,462 Kent State Bank 50,000 35,500 487,238 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT I—STATE BANK MEMBERSHIP. 247 Total Capital. Surplus. resources. DISTRICT NO. 7—Continued. INDIANA—continued. La Fontaine—Farmers State Bank $35,000 $491 $138,927 Marion—Grant Trust & Savings Bank 100,000 160,000 1,982,928 North Liberty—North Liberty State Bank.. 50,000 10,000 351,752 Peru—Peru Trust Co 100,000 25,000 1,398,810 Richmond—Dickinson Trust Co 200,000 125,000 3,090,949 Rochester—United States Bank & Trust Co. 75,000 25,000 808,950 South Bend- American Trust Co 200,000 128,000 3,634,718 St. Joseph Loan & Trust Co 200,000 100,000 3,424,492 South Whitley—Gandy State Bank 25,000 12,000 347,303 Terre Haute—Terre Haute Trust Co 350,000 200,000 6,450,195 Tip ton—Farmers Loan & Trust Co 50,000 50,000 911,385 Winamac—First Trust & Savings Bank 40,000 1,000 228,794 Algona—County Savings Bank 100,000 25,000 2,113,139 Alta Vista—Alta Vista Savings Bank 30,000 11,000 499,746 Ames—Story County Trust & Savings Bank 50,000 12,500 860,572 Audubon—Iowa Savings Bank 50,000 342,367 Avoca—Avoca State Bank 50,000 20,000 794,319 Barnes City—Farmers Savings Bank 35,000 15,000 569,759 Battle Creek—Battle Creek Savings Bank 40,000 60,000 886,707 Bellevue—Bellevue State Bank 30,000 18,000 1,050,970 Blairsburg—State Bank of Blairsburg 25,000 8,500 293,792 Brighton—Brighton State Bank 50,000 25,000 682,171 Britt—Commercial State Bank 60,000 60,000 1,340,151 Cedar Falls—Security Trust & Savings Bank 50,000 8,000 435,621 Cedar Rapids—Iowa'State Savings Bank 100,000 28,000 2,491,936 Chariton—State Savings Bank 50,000 50,000 912,160 Charter Oak—Farmers State Bank 40,000 8^000 463,717 Cherokee—Cherokee State Bank 75,000 75,000 1,390,865 Clinton—Peoples Trust & Savings Bank 300,000 300,000 5,293,603 Davenport—American Commercial & Savings Bank. 700,000 700,000 17,410,330 Decorah— Citizens Savings Bank 50,000 50,000 703,645 Wirmeshiek County Bank 150,000 50,000 2,234, 310 Des Moines— Bankers Trust Co 1,000,000 200,000 5,089,403 Central State Bank 250,000 250,000 7,092,000 First Trust & Savings Bank 200,000 17,122 1,657,797 Iowa Loan & Trust Co 500,000 250,000 9,868,911 Elberon—Farmers State Bank 40,000 20,000 783,213 Eldora—Citizens Savings Bank 50,000 15,000 240,950 Elkader—Elkader State Bank 50,000 25,000 1,080,838 Ellsworth- Farmers State Bank 25,000 203,883 State Bank of Ellsworth 35,000 10,000 318,796 Fairbank—Fairbank State Bank 26,000 24,000 565,759 Fairfield—Iowa State Savings Bank 100,000 100,000 2,010,258 Fort Madison—American State Bank 100,000 8,000 1,250,388 Fostoria—Citizens Savings Bank 25,000 4,000 214,598 Garwin—Garwin State Bank 50,000 25,000 548,785 Gilbert—Gilbert Savings Bank 50,000 340,123 Gilman—Citizens Sayings Bank 25,000 18,000 550,456 Grant—Farmers Savings Bank 25,000 10,000 302,149 Humboldt—Peoples State Bank 100,000 35,000 909,214 Jefferson—Jefferson Savings Bank 50,000 7,000 554,672 Knoxville—Guaranty State Bank 50,000 12,000 502,764 Lakota—Farmers & Drovers State Bank 30,000 6,000 291,502 Leon—Farmers & Traders State Bank 100,000 7,500 986,283 Lockridge—Lockridge Savings Bank 25,000 15,000 445,275 Logan—State Savings Bank 50,000 10,000 492,001 Lowden—Lowden Savings Bank 25,000 12,000 467,464 Lytton—Farmers Savings Bank 30,000 10,000 470,034 Malcom—Malcom Savings Bank 50,000 30,000 542,363 Mapleton—Mapleton Trust & Savings Bank , 75,000 9,000 713,516 M M a as rs o h n a C llt it o y w -— n— Co M m a m rs e h rc a i l a lt l o S w a n v i S ng ta s t e B B an a k nk.. 4 1 1 0 0 0 0 , , 0 0 0 0 0 0 2 5 5 0 , , 0 0 0 0 0 0 2 1 , , 6 7 4 63 8 , , 2 1 7 6 1 3 Mediapolis—Commercial State Bank 50,000 17,500 665,417 M M i o s n s d ou am ri i V n— all M ey o — nd S a t m at i e n S S a a v v in in g g s s B B a a n n k k 3 5 5 0 , , 0 0 0 0 0 0 1 7 0 . , 0 0 0 00 0 3 5 9 5 7 9 , , 7 1 2 2 6 7 Monticello— Lovell State Bank. 200,000 100,000 1,360,960 Monticello State Bank 200,000 200,000 2,268,660 Moville—Moville State Bank 35,000 20,000 395,132 New Hampton—State Bank 50,000 40,000 822,020 Newton— Citizens State Bank 60,000 15,000 627, 761 Jasper County Savings Bank 100,000 50,000 1,510,567 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

248 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Total resources. DISTRICT NO. 7—Continued, low A—continued. Ogden—City State Bank. $50,000 $10,000 $593,358 Osage—Home Trust & Sayings Bank 50,000 25,000 613,702 Ottumwa—Ottumwa Savings Bank 100,000 30,000 1,575,033 Perry—Peoples Trust & Savings Bank 50,000 1,500 497,300 Remsen—Farmers Savings Bank 50,000 17,000 629,325 Riceville—Riceville State Bank 25,000 10,000 249,472 Roland—Farmers Savings Bank 35,000 25,000 552,570 Royal—Home State Bank 25,000 2,500 242,174 Sac City- Farmers Savings Bank 50,000 25,000 763,289 Sac County State Bank 75,000 75,000 1,218,958 Sibley—Sibley State Bank 50,000 15,000 783,175 Sioux Center—Sioux Center State Bank 25,000 35,000 347,358 Sioux City—Bankers Loan & Trust Co 100,000 8,000 655,468 Sutherland—First Savings Bank 50,000 5,000 423,923 Terril—Terril Savngs Bank 25,000 1,500 179.385 Thompson—State Bank of Thompson 30,000 8,000 295,062 Tipton—Farmers & Merchants .Savings Bank.. 50,000 15,000 617,033 Ute—State Savings Bank. 50,000 15,000 361,365 Vail—Farmers State Bank 50,000 8,000 364,468 Wapello—Wapello State Savings Bank 30,000 10,000 563,252 "Waterloo—Waterloo Bank & Trust Co 200,000 50', 000 1,782,126 MICHIGAN. Adrian- Adrian State Sayings Bank 120,000 100,000 2,262,880 Commercial Savings Bank 110,000 30,000 1,565,559 Lenawee County Savings Bank 150,000 50,000 2,276,838 Albion- Albion State Bank 50,000 40,000 1,106,027 Commercial & Savings Bank 75,000 40,000 1,023,737 Alpena—Alpena County Savings Bank 100,000 125,000 3,791,254 Ann Arbor- Farmers & Mechanics Bank 150,000 75.000 2,289,788 State Savings Bank 150,000 150,000 3,574,736 Armada- Armada State Bank 25,000 16,000 425,881 Farmers State Bank 25,000 8,500 325,322 Bay City- Bay City Bank 250,000 250,000 5,401,627 Farmers State Sayings Bank 100,000 25,000 1,575,933 Peoples Commercial & Savings Bank 400,000 400,000 10,743,815 Bellevue—Farmers State Bank 25,000 5,000 154,196 Benton Harbor—Benton Harbor State Bank 100,000 29,000 1,821,730 Big Rapids- Big Rapids Savings Bank 50,000 10,000 801,910 Citizens State Bank 50,000 25,000 1,161,340 Birmingham—First State Savings Bank 40,000 15,000 1,106,007 Caledonia—State Bank of Caledonia 25,000 14,000 511,780 Caro—State Savings Bank 112,500 87,500 1,449,951 Carson City—Farmers & Merchants State Bank... 25,000 5,000 360,319 Carsonville—The First State Bank 25,000 5,000 481,228 Cassopolis—Cass County State Bank 40,000 2,350 414,394 Charlotte—Eaton County Savings Bank 100,000 20,000 1,213, 274 Chelsea- Farmers & Merchants Bank 25,000 25,000 705,936 Kempt Commercial & Savings Bank 40,000 40,000 882,361 Coloma—State Bank of Coloma 25,000 12,500 625,325 Coopersville—Peoples Savings Bank 25,000 1,600 356,103 Croswell—First State Savings Bank 30,000 6,000 568,256 Davison—Davison State Bank 25,000 6,000 518,694 Dearborn—Dearborn State Bank 100,000 150,000 4,939,094 Detroit- American State Bank 500,000 200,000 13, 644,876 Bank of Detroit 000,000 350,000 21,321,231 Central Savings Bank 000,000 200,000 17,907,902 Detroit Savings Bank 750,000 750,000 25,843,603 First State Bank 000,000 300,000 14,417,698 Peninsular State Bank 500,OuO 1,000,000 38,134,998 Peoples State Bank of T etroit 500,000 4,000,000 119,690,469 The Dime Savings Bank 000,000 1, 300, COO 38,093,426 United Savings Bank 500,000 175,000 6,517,627 Wayne County and Home Savings Bank. ... 000,000 4,000,000 80,174,511 Edmore—Edmore State Bank 30,000 8,500 473,047 Elk Rapids—Elk Rapids State Bank 35,000 15,000 344,598 Evart—First State Savings Bank 50,000 10,000 792,878 Farmington—Farmington State Savings Bank... 40,000 20,000 603,707 Fenton— Commercial Savings Bank 25,000 13,500 559,262 Fenton State Savings Bank 25,000 12,000 762,438 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT I—STATE BANK MEMBERSHIP. 249 Total Surplus. resources. DISTRICT NO. 7—Continued. MICHIGAN—continued. Flint- Citizens Commercial & Savings Bank $150,000 $210,000 $4,839,972 Genesee County Savings Bank 500,000 300,000 10,792,676 Industrial Savings Bank 250,0C0 250,000 10,702,208 Union Trust & Savings Bank 100,000 160,000 5,513,784 Flushing—Peoples State Bank 25,000 15,000 329,887 Fountain—Bank of Fountain 25,000 5,000 190,298 Frankenmuth—Frankenmuth State Bank 50,000 25,000 977,288 Fremont- Fremont State Bank 25,000 25,000 650,405 Old State B ank 50,000 25,000 1,018,241 Grand Haven— Grand Haven State Bank 75,000 75,000 1,938,211 Peoples Savings Bank 50,000 22,000 810,362 Grand Rapids- City Trust & Savings Bank 200,000 40,000 2,769,424 Commercial Savings Bank 300,000 60,000 3,309,304 Grand Rapids Savings Bank 400,000 350,000 11,626,312 Kent State Bank 500,000 500,000 11,355,949 Peoples Savings Bank 200,000 100,000 2,551,847 Greenville—Commercial State Savings Bank 50,000 15,000 976,331 Hart—Oceana County Savings Bank 40,000 13,000 619,126 Highland Park—Highland Park State Bank 1,000,000 700,000 22,975,650 Hillsdale—Hillsdale Savings Bank 60,000 25,000 1,036,180 Holland- First State Bank 100,000 20,000 2,283,967 Holland City State Bank 100,000 50,000 1,775,915 Holly—First State & Savings Bank 30,000 60,000 i; 437,916 Hopkins—The Hopkins State Bank 25,000 5,000 495,819 Howell—First State & Savings Bank 75; ooo 15,000 591,510 Hudson- Boise State Savings Bank 75,000 25,000 820,332 Thompson Savings Bank 100,000 50,000 1,475,230 Imlay City— Lapeer County Bank • 50,000 10,000 1,117,493 Peoples State Bank 50,000 10,000 767,430 Ionia—State Savings Bank 100,000 100,000 1,596,172 Jackson— Central State Bank 100,000 26,000 1,986,627 Jackson State Savings Bank 100,000 100,000 2,715,606 Jonesville—Grosvenor Savings Bank 50,000 25,000 584,300 Lake Odessa—Lake Odessa State Savings Bank 25,000 12,500 392,830 Lakeview— Commercial State Savings Bank 25,000 3,250 236,424 Farmers & Merchants State Bank 25,000 5,000 297.827 Lansing—Lansing State Savings Bank - 150,000 100,000 4, 479,584 Lapeer—Lapeer Savings Bank 50,000 10,000 774,743 Lenox and Richmond—The Macomb County Savings Bank 50,000 10,000 894,872 Lowell—City State Bank 25,000 10,000 685,028 Ludington—Ludington State Bank 100,000 20;000 1,600,343 Manchester— Peoples Bank 25,000 15,000 563,755 Union Savings Bank 25,000 50,000 813,303 Manistce—Manistee County Savings Bank 100,000 100,000 2,236,988 Marcellus—G. W. Jones Exchange Bank 40,000 20,000 619,254 Marshall—Commercial Savings Bank 100,000 20,000 1,195,517 Mason— The Farmers Bank 50,000 10,000 576,790 First State & Savings Bank 25,000 15,000 671,090 Midland— Chemical State Savings Bank 50,000 5,000 827,035 Milan— Milan State Savings Bank 25,000 8,000 356,256 Milford—First State Bank 25,000 6,000 637.828 Monroe—B. Dansard & Sons State Bank 100,000 20.000 1,964,986 Morenci—Waken eld State Bank 50,000 30) 000 921,857 Mount Clemens—Ullrich Savings Bank 100,000 100,000 2,381,062 Mount Pleasant- Exchange Savings Bank 50,000 30,000 1,152,846 Isabella County State Bank 60,000 9,000 1,370,529 Nashville— Fanners & Merchants Bank 30,000 35,000 761,350 State Savings Bank 25,000 5,750 411,603 Niles City—Niles City Bank 100,000 25,000 923,707 Northville—Lapham State Savings Bank 50,000 15,000 721,595 Onsted—Onsted State Bank 25,000 6,000 296,144 Paw Paw—Paw Paw Savings Bank 40,000 10,000 466,574 Petersburg—The H. C. McLachlin & Co. State Bank 25,000 5,000 500,640 Petoskey—First State Bank 60,000 12,000 985,617 Pontiac— American Savings Bank 200,000 50,000 2,559,143 First Commercial Bank 200,000 90,000 4,473,244 Pontiac Savings Bank 500,000 100,000 7,313,744 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

250 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Total Capital. Surplus. resources. DISTRICT NO. 7—Continued. MICHIGAN—continued. Port Huron—Federal Commercial & Savings Bank. $150,000 $50,000 $5,428,410 Redford—Redford State Savings Bank 25,000 10,500 657,819 Rochester—Rochester Savings Bank 50,000 10,000 636,576 Rogers City—Presque Isle County Savings Bank.... 35,000 15,000 843,166 Romeo—Romeo Savings Bank 50,000 30,000 1,321,556 Royal Oak- First Commercial State Bank 25,000 15,000 888,289 Royal Oak Savings "Bank 40,000 20,000 1,189,570 Saginaw— American State Bank 200,000 100,000 3,501,657 Bank of Saginaw 500,000 700,000 17,507,720 Saline—Saline Savinss Bank 25,000 25,000 505,025 St. Charles—St. Charles State Bank 25,000 5,000 481,213 St. Clair—Commercial & Savings Bank 50,000 10,000 996,456 Saugatuck—Fruit Growers State Bank 50,000 15,000 699,924 South Haven—Citizens State Bank 100,000 50,000 1,369,701 Suttons Bay—Leelanau County Savings Bank 25,000 10,000 346,908 Tecumseh— Lilley State Bank 40,000 20,000 645,765 Tecumseh State Savings Bank 26,000 26,000 864,726 Traverse City—Traverse City State Bank 200,000 100,000 2,988,624 Vicksburg— Farmers State Bank 25,000 5,000 484,557 First State Bank 30,000 3,500 405,666 Warren—State Savings Bank of Warren 25,000 25,000 707,601 Washington—Washington Savings Bank 25,000 10,000 336,718 Wayne—Wayne Savings Bank 50,000 50,000 1,061,250 Williamston— Crossman & Williams State Bank 40,000 12,000 426,642 Williamston State Bank 50,000 10,000 492,418 WISCONSIN. Baraboo—Bank of Baraboo •. 100,000 50,000 1,924,125 Burlington—Bank of Burlington 125,000 25,000 1,795,826 Clinton—Citizens Bank 50,000 10,000 573,826 Dela van—Citizens Bankof D elavan 50,000 25,000 1,016,132 Green Lake—Green Lake State Bank 25,000 10,000 430,562 Kenosha—Merchants & Savings Bank 100,000 14,000 2,133,313 Kewaunee—State Bank of Kewaunee 60,000 15,000 993,135 Madison—Bank of Wisconsin. 300,000 60,000 2,809,417 Milwaukee- American Exchange Bank ,000,000 200,000 8,820,159 Badger State Bank 200,000 10,000 2,610,846 Marshall & Ilsley Bank .,000,000 1,000,000 24,500,721 Second Ward Savings Bank ,000,000 1,000,000 31,522,962 Mineral Point—Iowa County Bank 100,000 50,000 1,830,710 Mosinee—State Bank of Mosinee 45,000 25,000 582,152 Oakfield—Bank of Oakfield 25,000 10,000 337,289 Platteville—State Bank of Platteville 50,000 10,000 1,261,358 Plymouth— P lymouth E xchange B ank 100,000 40,000 1,241,485 State Bank of Plymouth 125,000 32,500 1,385,294 Sheboygan— Bank of Sbeboygan 100,000 200,000 4,314,938 Citizens State Bank 200,000 125,000 3,084,727 Sturgeon Bay—Bank of Sturgeon Bay 50,000 10,000 1,876,348 Waupun—State Bank of Waupun 50,000 3,000 739,417 Wausau—Marathon County Bank 100,000 40,000 1,294,894 Winneconne—Union Bank 25,000 9,500 509,792 Total 83,022,000 71,011,363 1,683,694,386 DISTRICT NO. 8. ARKANSAS. Arkansas City—Desha Bank & Trust Co 100,000* 100,000 1,384,430 Batesville— Citizens Bank & Trust Co 50,000 15,000 578,065 Union Bank and Trust Co 75,000 12,000 1,373,673 Blytheville—Farmers Bank & Trust Co 50,000 35,000 906,970 Dardanelle—Dardanelle Bank & Trust Co 50,000 10,000 557,489 Dumas—Merchants & Farmers Bank 50,000 15,000 476,657 El Dorado—Bank of Commerce 50,000 5,000 131,927 England—Citizens Bank & Trust Co 100,000 10,000 691,795 Helena—Security Bank & Trust Co 100,000 50,000 2,058,994 Jonesboro— Bank of Jonesooro 150,000 150,000 3,533,192 Jonesboro Trust Co 100,000 50,000 1,646,547 Lake Village—Chicot Bank & Trust Co 100,000 21,000 955,274 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT I—STATE BANK MEMBERSHIP. 251 Total Capital. Surplus. resources. DISTRICT NO. 8—Continued. ARKANSAS—continued. Little Rock- American Bank of Commerce & Trust Co. $750,000 $150,000 $14,394,354 Bankers Trust Co 250,000 25,000 3,964,766 Southern Trust Co , 500,000 100,000 6,009,694 Union & Mercantile Trust Co 400,000 200,000 6,575,055 W. B. Worthen Co., Bankers 200,000 200,000 2,035,483 Magnolia- Columbia County Bank 50,000 11,500 593,714 Farmers Bank & Trust Co 50,000 30,000 1,086,435 Pine Bluff—Cotton Belt Savings & Trust Co.. 100,000 40,000 1,010,028 Prescott—First State Bank 50,000 1,500 340,976 Texarkana—Merchants & Planters Bank 200,000 14,000 1,234,884 Warren—Warren Bank 75,000 20,000 577,849 ILLINOIS. Belleville—Belleville Savings Bank 150,000 I 400,000 4,115,464 East St. Louis- Illinois State Bank 400,000 60,000 5,227,813 Union Trust & Savings Bank 200,000 50,000 2,733,136 Edwardsville—Citizens State & Trust Bank. 60,000 36,000 896,611 Effingham—Effingham State Bank 50,000 10,000 1,017,231 Gillespie—Gillespie Trust & Savings Bank... 50,000 15,000 771,013 Greenville—State Bank of Hoiles & Sons 100,000 30,000 1,412,506 Lebanon—State Bank of Lebanon 50,000 5,000 320,497 Litchneld—Litchfield Bank & Trust Co 100,000 10,000 863,068 Louisville—Clay County State Bank 25,000 7,500 225,254 Madison—Union Trust Co 50,000 166 296 Quincy—State Savings Loan & Trust Co 1,000,000 200000 9,273,119 INDIANA. Evansville—Mercantile Commercial Bank.. 200,000 100,0001 2,549,260 Paoli—Paoli State Bank 25,000 1750i 403,705 1 KENTUCKY. Harrcdsburg—State Bank & Trust Co 100,000 21,000 ! 682,754 Louisville- Kentucky Title Savings Bank & Trust Co. 350,000 70,000 7,866,749 Liberty Insurance Bank 500,000 750,000 14,134,528 Lincoln Savings & Trust Co 500,000 100,000 3,142,808 Owensboro—Central Trust Co 200,000 40,000 1,747,485 Bowling Green—Pike County Bank 25,000 6,750 326,713 Clayton—Farmers & Commercial Savings Bank.. 75,000 7500 229,132 Jefferson City—Exchange Bank of Jefferson City.. 100,000 20,000 1312,041 Lexington—Lafayette County Trust Co 75,000 15,000 307,285 Linn Greek—Camden County Bank 25,000 35.000 322,890 Macon—State Exchange Bank of Macon 100,000 20,000 1,001,647 Maplewood—Bank of Maplewood 50,000 7,200 555,185 Marshall—Wood & Huston Bank 100,000 150,000 2,037,632 St. Louis- American Trust Co 1,000,000 128,000 9,770,405 Farmers & Merchants Trust Co 200,000 30000 3,337,187 Franklin Bank 600,000 800,000 11.311,079 International Bank of St. Louis 500,000 500,000 9,137,875 Lafayette South Side Bank 800,000 400,000 16,531,746 Liberty Bank 1,500,000 1,000,000 20869,508 Mercantile Trust Co 3,000,000 7,000,000 63,343,189 Mississippi Valley Trust Co 3,000,000 3,500,000 39333,195 Unite! States Bank 1,000,000 700,000 15998,957 Versailles—Bank of Versailles 75,000 7,000 577,984 Waynesville—Bank of Waynesville 25,000 5000 562,378 TENNESSEE. Brownsville—First State Bank 200,000 20000 1890,063 Dyer—The Farmers & Merchants Bank. 40,000 18941 385,093 Dyersburg—Citizens Bank 50,000 50000 1380,171 Memphis— Bank of Commerce & Trust Co 1500,000 1,500000 28944,780 Commercial Trust & Savings Bank.. 350,000 175000 7290,960 Guaranty'Bank & Trust Co 500,000 30500 5,179', 142 Union & Planters Bank & Trust Co. 1800.000 500000 40805,303 Total. 24400,000 19,797141 392409,088 178983—20 17 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

252 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Capital. Surplus. res T o o u t r a c l es. DISTRICT NO. 9. MICHIGAN. Gladstone—Gladstone State Savings Bank. $50,000 $15,000 SI,210,750 Gwinn—Gwinn State Savings Bank 25,000 15,000 352,115 Iron Mountain—Commercial Bank 100,000 50,000 1,365,807 Laurium—State Savings Bank 100,000 125,000 I", 288,920 Menominee—The Commercial Bank 100,000 20,000 717,494 Sault Ste Mariey- Central Savings Bank 100,000 20,000 956,817 Sault Savings Bank 100,000 35,000 1,532,398 MINNESOTA. Benson—Swift County Bank 50,000 50,000 1,545,254 Clarkfield—Clarkfield State Bank 50,000 10,000 1,041,544 Jeffers—State Bank of Jeffers 25;ooo 10,000 383,034 Lake City—Lake City Bank of Minnesota 50,000 50,000 851,239 Lewistori—Security State Bank 25,000 30,000 897,673 Luverne—Rock County Bank 50,000 10,000 580,667 Madelia—State Bank of Madelia 50,000 10,000 727,533 Minneapolis— North American Bank 200,000 200,000 5,971,419 St. Anthony Falls Bank 300,000 100,000 5,402,091 Wells-Dickey Trust Co 500,000 30,000 2,582,253 New Richland—State Bank of New Richland.. 50,000 10,000 683,621 Red Wing—First Security Bank 125,000 60,000 1,477,854 Revere—State Bank of Revere 30,000 30,000 219,570 St. Paul- Central Bank 200,000 40,000 2,873,458 Midland Trust & Savings Bank 456,422 74,060 895,493 Peoples Bank 300,000 60,000 2,747,397 South St. Paul- Drovers State Bank 100,000 50,000 1,987,173 Exchange State Bank 125,000 25,000 446,881 Spring Valley- Farmers State Bank 25,000 5,000 335,285 First State Bank 30,000 30,000 742,664 Waconia—Farmers State Bank 25,000 8,500 441,036 Westbrook—Citizens State Bank 25,000 8,000 294,926 Willmar—Kandiyohi County Bank 100,000 20,000 1,974,990 Winona— Deposit Bank of Winona 400,000 100,000 4,771,830 Merchants Bank of Winona 200,000 50,000 3,802,531 MONTANA. Billings—Security Trust & Savings Bank 100,000 1,034,349 Bozeman— Gallatin Trust & Savings Bank 100,000 25,000 995,522 Security Bank & Trust Co 100,000 270,554 Broadus—Powder River County Bank 25,000 196,702 Denton—Denton State Bank 25,000 4,000 210,676 Dillon— Beaverhead State Bank 50,000 271,522 Security State Bank 50,000 3,700 234,530 Ennis—Southern Montana Bank 25,000 20,000 398,854 Hamilton—Ravalli County Bank 50,000 12,500 672,449 Helena- Conrad Trust & Savings Bank 200,000 100,000 2,511,780 Union Bank & Trust Co 250,000 150,000 5,298,137 Hingham—Hingham State Bank 35,000 6,000 290,687 Hinsdale—Valley County Bank 25,000 5,000 203,497 Inverness—Inverness State Bank 25,000 3,000 185.391 Laurel—American Bank of Laurel 25,000 2,500 162; 669 Lewistown— Bank od Fergus County 250,000 250.000 3,73(5,661 Empire Bank & Trust Co 100,000 20,000 1,040,729 Lewistown State Bank j 50,000 20,000 443,S89 Missoula—American Bank c'c Trust Co 100J000 11,500 1,887,218 Nashua—State Bank of Nashua j 25,000 3,000 277,361 Opheirn—First State Bank 01 Opheim j 25,000 5,000 254,319 Park City—Park City State Bank I 40,000 359,379 R eed Point—It eed Point State 13 ank 25,000 5,000 188,368 Roundup—Citizens State Bank 50,000 35,000 841,224 Sidney—Yellowstone Valley Bank & Trust Co 100,000 10,000 629.691 White Sulphur Springs—Central State Bank GO, 000 15,000 409; 027 NORTH DAKOTA. Enderlin—Enderlin State Bank I 50,000 10,000 582,204 Fargo—Northern Savings Bank | 100,000 25,000 2,261,024 Ilettinger—Hettinger State B ank 25,000 5,000 354,767 Noouan—Security State Bank I 25,000 5, 000 444,871 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

253 EXHIBIT I STATE BANK MEMBERSHIP. Total Capital. Surplus. resources. DISTRICT NO. 9—Continued. SOUTH DAKOTA. Belle Fourche—Butte County Bank $75,000 $25,00C $1,386,611 Brookings—Bank of Brookings 150,000 25,00C 3,228,105 Camp Crook—Little Missouri Bank 25,000 5,00C 711,737 Chamberlain— Brule State Bank 50,000 i 10, OOf 885,993 Groton—Brown County Banking Co 25,000 10,00C 774,138 Hecla—Farmers & Merchants State Bank 25,000 5,00C 357,789 Mitchell- Commercial Trust & Savings Bank 100,000 10,000 1,353,187 Newell—Reclamation State Bank 25,000 I 2,00C 301,343 Sioux Falls- Commercial & Savings Bank 500,000 1,578,355 Sionx Falls Savings Bank 300,000 32,000 6.332,140 South Shore—South Shore Bank 25,000 | 3,500 286,779- Stratford—First State Bank 30,000 ! 1,000 474,122 Timber Lake—Stock Growers State Bank 25,000 i 5,000 340,537 Webster—Security Bank & Trust Co 60,000 | 25,000 1,811,57'L WISCONSIN. Arcadia—'Bank of Arcadia 50,000 7,500 724,155 Balsam Lake—Polk County Bank. 25,000 5,000 297,162 Boyceville—Bank of Boyceville 30,000 5,300 451,593 Ellsworth—Bank of Ellsworth- 50,000 15,000 1,119,911 Glenwood City—First State Bank 42,000 600 375,792 Grantsburg—First Bank of Grantsburg 50,000 3,000 685,918 Merrill—Lincoln County Bank 100,000 35,000 1,622,173 New Richmond—Bank of New Richmond. 35,000 15,000 835,811 West Salem—La Crosse County Bank 30,000 7,500 557,940 Whitehall—Peoples State Bank 30,000 6,000 551,585 Total. 8,033,422 2,360,160 104,794,215 DISTRICT NO. 10. COLORADO. Denver- American Bank & Trust Co 500,000 193,500 7,669,261 International Trust Co 500,000 500,000 13,421,652 Fort Lupton—Fort Lupton State Bank. 25,000 5,000 453,437 KANSAS. Anthony—Home State Bank 25,000 1,500 174,605 Fairview—Fairview State Bank 30,000 17,000 302,644 Fort Scott—Fort Scott State Bank 100,000 32,000 1,692,413 Hiawatha—Morrill & Janes Bank 100,000 50,000 1,162,173 Liberal—The Citizens State Bank 50,000 17,000 515,068 Topeka—Kansas Reserve State Bank 200,000 55,200 2,444,872 Wichita- Southwest State Bank 200,000 50,000 2,115,997 The State Savings & Mercantile Bank. 200,000 1 20,000 1,786,824 Winfield—State Bank of Winfleld 100,000 i 50,000 1,846,893 MISSOUEI. Joplin—Conqueror Trust Co 150,000 75,000 2,380,562 Kansas City— Commerce Trust Co 1,000,000 1,000,000 41, 465,657 Live Stock State Bank 200,000 37,500 2,148,802 Savannah—The Wells-Hine Trust Co 100,000 3,000 688,938 South St. Joseph—St. Joseph Stock Yards Bank.. 250,000 100,000 4,894,006 NEBRASKA. Allen—Farmers State Bank 30,000 6,000 288,296 Broken Bow—Ouster State Bank 35,000 7,000 534,538 Chappell—Chappell State Bank 25,000 25,000 665,833 Cozad—Farmers State Bank 50,000 10,000 780,807 David City—Butler County State Bank. 50,000 15,000 455,910 Elgin—Elgin State Bank 80,000 20,000 1,009,447 Genoa—Farmers State Bank 25,000 1,250 231,008 Kilgore—Kilgore State Bank 25,000 5,100 299,747 Lewellen—Bank of Lewellen 50,000 1,713 381,007 Lincoln—American State Bank 100,000 956,576 Neligh—Security State Bank 25,000 5,000 258,890 North Bend—First State Bank 25,000 15,000 567,355 Ord—Nebraska State Bank 35,000 12,000 520,161 Pender—Pender State Bank 85,000 19,000 747,597 St. Edward—Farmers State Bank 25,000 1,250 257,139 Sidney—American Bank 100,000 25,000 1,348,161 Wayne—State Bank of Wayne 50,000 15,000 1,182,246 Western—Saline County Bank 30,000 30,000 '350,800 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Capital. Surplus. Total resources. DISTRICT NO. 10—Continued. NEW MEXICO. Aztec—The Citizens Bank $40,000 $10,000 $267,895 50,000 10,000 378,877 Santa Fe—Capital City Bank OKLAHOMA.. 50,000 6,000 739,919 Chelsea—Bank of Chelsea 50.000 5,500 698,095 Clinton—The First State Bank 30,000 3,000 449,902 Cordell—Cordell State Bank 25,000 2,500 190,244 Goltry—Bank of Goltry 25,000 8,500 230,098 Locust Grove—First State Bank 200,000 50,000 5,171,057 Oklahoma City—Tradesmens State Bank 200,000 20,000 2,619,633 Okmulgee—Guaranty State Bank 60,000 6,000 301,305 Pawhuska—Stockgrowers State Bank 300,000 15,000 2,538,794 Ponca City—Security State Bank WYOMING. 100,000 20,000 517,969 Cheyenne—Cheyenne State Bank 5,705,000 2,576,513 110,103,110 Total DISTRICT NO. 11. Sarlord— Bank of Safford 33,000 40,000 740,902 Tombstone—Cochise County State Bank. 30,000 10,000 349,745 Monroe—Central Savings Bank & Trust Co. 250,000 62,500 2,119,517 Shreveport—Continental Bank & Trust Co. 300,000 50,000 3,988,581 NEW MEXICO. Albuquerque—American Trust & Savings Bank. 100,000 50,000 935,369 Corona—Stockmen's State Bank 30,000 5,000 162;287 Lovington—First Territorial Bank 30,000 50,000 310,690 MQuntainair—Mountainair State Bank 25,000 10,000 229,02& Portales—Security State Bank 25,000 5,000 263,769 OKLAHOMA. Fort Towson—First State Bank 50,000 15,000 560,935 Valliant—Farmers State Guaranty Bank- 50,000 21,000 674,792 Alpine—Alpine State Bank 30,000 35,000 385,721 Alto—Alto State Bank 25,000 10,000 244,809 Anson—Anson State Bank 35,000 11,000 788,780 A very—A very State Bank 25,000 5,000 173,088 Ballinger—Ballinger State Bank <fe Trust Co.... 60,000 10,000 343,769 Beaumont— Guaranty Bank & Trust Co 100,000 20,000 1,891,960 Texas Bank & Trust Co 250,000 127,500 3,394,636 Beeville—Beeville Bank & Trust Co 50,000 27,000 427,832 Bomarton—First State Bank 25,000 2,500 418,637 Bonham— Fannin County Bank 100,000 50,000 1,502,051 First State Bank of Bonham 200,000 100,000 1,450,642 Bremond—First State Bank 50,000 11,000 399,188 Brownfield—Brownfield State Bank 25,000 25,000 386,804 Canyon—First State Bank 32,000 1,000 343,286 Childress—Farmers & Mechanics State Bank... 50,000 40,000 1,247,962 Collinsville—First Guaranty State Bank 25,000 7,000 369,346 Colorado—First State Bank 30,000 3,000 254,541 Commerce—Citizens State Bank 25,000 5,000 329,899 Corsicana—First State Bank 100,000 20,000 1,233,188 Crowell—First State Bank 30,000 23,000 497,926 Cuero—First State Bank & Trust Co 100,000 42,000 703,181 Dallas—Central State Bank 500,000 131,000 5,657,809 DeKalb—First State Bank 50,000 25,000 586,076 Denison—Denison Bank & Trust Co 160,000 42,500 3,328,644 Denton—First Guaranty State Bank 50,000 5,000 437,344 Edgewood—Farmers & Merchants State Bank. 35,000 5,500 244,311 El Paso—El Paso Bank & Trust Co 200,000 10,000 2,484,798 Ferris—Farmers & Merchants State Bank 50,000 12,000 301,494 Flatonia—Flatonia State Bank 50,000 485,235 Franklin—First State Bank 30,000 10,000 367,323 t—The Citizens State Bank 25,000 50,000 321,543 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

255 EXHIBIT I STATE BANK MEMBERSHIP. Total Capital. Surplus .5 resources. DISTRICT NO. 11—Continued. TEXAS—continued. Galveston—South Texas State Bank $150,000 $30,000 $3,389,578 Gatesville—Guaranty State Bank & Trust Co 50,000 8,000 490,268 Gilmer—Gilmer State Bank 50,000 13,500 310,852 Goldthwaite—Trent State Bank 50,000 25,000 886,400 Gonzales—-Gonzales State Bank & Trust Co 75,000 25,000 572,291 Graford—First State Bank 50,000 10,000 291,712 Grand Prairie- First State Bank 40,000 20,200 298,553 Guaranty State Bank 25,000 108,675 Hamlin—First State Bank 40,000 10,000 538,438 Henderson—First State Bank 25,000 15,000 242,842 Hereford—First State Bank & Trust Co 50,000 50,000 662,670 Hillsboro—First State Bank 150,000 15,000 720,110 Italy—Farmers State Bank 50,000 15,000 550,364 Jacksonville- Farmers Guaranty State Bank 50,000 12,000 334,182 First Guaranty State Bank 62,500 15,625 531,726 Junction—Junction State Bank 50,000 60,000 827,847 Kerens—First State Bank 50,000 30,000 419,627 Killeen—First State Bank 25,000 8,000 487,451 Kirkland—First State Bank 25,000 15,000 508,142 Ladonia—First State Bank 25,000 * 12,500 581,278 Lamesa—First State Bank 30,000 20,000 685,052 Leonard—First State Bank 50,000 7,500 480,014 Lockney—Lockney State Bank 25,000 10,000 582,506 Loraine—First State Bank, 30,000 15,000 475,010 Lorenzo—First State Bank 25,000 700 527,795 Lubbock— Lubbock State Bank 100,000 25,000 1,338,715 Security State Bank & Trust Co , 100,000 587,162 Memphis—Citizens State Bank 75,000 37,500 1,058,633 Mount Calm—First State Bank 25,000 10,000 162,059 Mount Pleasant—Guaranty State Bank 60,000 20,000 812,247 Nacogdoches—Commercial Guaranty State Bank... 100,000 25,000 1,557,644 Normangee—First State Bank 25,000 25,000 223,707 Paducah—First State Bank 50,000 50,000 695,147 Palmer—First Guaranty State Bank 25,000 15,000 225,308 Pampa—Gray County State Bank 25,000 293,769 Paris— First State Bank 150,000 75,000 1,963,398 Lamar State Bank & Trust Co 150,000 25,000 3,522,750 Pecos—Pecos Valley State Bank 110,000 32,000 674,426 Post City—First State Bank 25,000 300 190,767 Quanah—First Guaranty State Bank 100,000 50,000 1.266,356 Rails- First State Bank 25,000 2,500 257,670 Guaranty State Bank & Trust Co 60,000 1,000 594,100 Reagan—First State Bank 25,000 10,000 169,984 Richardson—Citizens State Bank 35,000 500 272,762 Rockwall—Guaranty State Bank 35,000 2,500 848,216 Royse—First State Bank 50,000 25,000 258,660 Rusk—Farmers & Merchants State Bank 25,000 17,500 444,762 Sabinal—First State Bank 30,000 30,000 367,103 San Augustine—Commercial Guaranty State Bank. 50,000 3,000 315,183 Santa Anna—First State Bank 35,000 13,000 425,533 Savoy—First State Bank 25,000 6,500 229,858 Seymour—First Guaranty State Bank 35,000 3,150 171,956 Shamrock—Farmers & Merchants State Bank 50,000 50,000 539,924 Sinton—Bank of Commerce 25,000 12,500 381,407 Snyder—First State Bank & Trust Co 50,000 25,000 382,422 Spearman—Guaranty State Bank 25,000 3,000 74,723 Stamford—First State Bank 55,000 15,000 1,125,468 Sweetwater—Texas Bank & Trust Co 100,000 75,000 767,655 Terrell—First State Bank 100,000 65,000 1,514,824 Tioga—First Guaranty State Bank 30,000 10,000 282,080 Trenton—Guaranty State Bank 25,000 6,500 151,665 Troup—Guaranty State Bank 25,000 20,000 318,125 Tyler- Guaranty State Bank 200,000 60,000 1,406,428 Peoples Guaranty State Bank 100,000 30,000 916,928 Valley View—First Guaranty State Bank 25,000 10,000 ' 163,792 Weatherford—First State Bank. 125,000 17,000 1,728,190 Wellington—Wellington State Bank 50,000 40,000 904,831 Wharton—Security Bank & Trust (Co.. 50,000 7,000 453,469 White Deer—First State Bank. 25,000 500 570,569 Winnsboro—Merchants & Planters State Bank. 30,000 30,000 803,298 Wolfe City—First State Bank 50,000 25,000 659,692 Wylie—First State Bank 50,000 25,000 401,380 Total. 7,432,500 2,658,475 89,315,563 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

256 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Total Capital. Surplus. resources. DISTRICT NO. 12. Buckeye—Buckeye Valley Bank. $25,000 $3,500 $170,881 Phoenix—The Valley Bank 500,000 100J 000 6,456,256 CALIFORNIA. C A e la d m ar e v d il a l — e— A S la u m rp e r d is a e S V a a v l i l n ey g s B B a a n n k k T 2 2 3 5 6 , , 0 3 0 0 0 0 1 2 2 5 5 , , 0 0 0 0 0 0 4, 3 2 4 2 6 8 , , 1 8 8 3 3 0 Fullerton—Standard Bank of Orange County 50,000 67,042 Los Angeles— 'Guaranty Trust & Savings Bank 1,500,000 1,000,000 28,216,489 ILos Angeles Trust & Savings Bank 1,500.000 1,725,000 36,001,546 Security Trust & Savings Bank l.SOOJOOO 1,100,000 62,634,439 Norwalk—Bank of Norwalk 25,000 10,000 407,185 Placerville—The A. Mierson Banking Co 53,000 71,000 1,391,659 St. Helena—Bank of St. Helena 75,000 29,500 812,899 San Bruno—California Bank of San Mateo County 25,000 27,500 San Fernando—The San Fernando Valley Savings Bank. 25,000 3,000 172,009 San Francisco^- Anglo-California Trust Co 1,500,000 700,000 24,428,237 Bank of Italy 6,000,000 1,500,000 131,862,820 French American Ba,nk of Savings 1,000,000 250,000 14,836,458 Italian American Bank 1,000,000 142,500 11,404,786 The San Francisco Savings & Loan Society 1,000,000 2,300,000 63,118,056 Savings Union Bank & Trust Co 1,500,000 1,625,000 47,132,254 Santa Barbara—Commerical Trust & Savings Bank 632,500 175,000 7,376,160 Santa Monica- Bank of Santa Monica 140,000 61,000 2,301,621 Ocean Park Bank 114,500 17,700 1,577,811 Sausalito—Bank of Sausalito 50,000 7,000 615,839 Stockton—Farmers & Merchants Bank 640,000 220,000 6,411,752 Arco—Butte County Bank 25,000 28,750 Ashton—Security State Bank 50,000 15,000 625,980 Bellevue—Bellevie State Bank 30,000 8,000 322,011 Blackfoot—Blackfoot City Bank 50,000 10,000 627,356 Cambridge—Peoples Bank 40,000 4,000 434,909 Drummond—First State Bank 25,000 86,872 Eagle—Bank of Eagle 25,000 1,250 248,625 Emmett—Bank of Emmett 60,000 15,000 921,913 Filer—Farmers & Merchants Bank 25,000 240,386 Genesee—Genesee Exchange Bank 25,000 12,500 824,643 Gooding—Citizens State Bank 25,000 12,500 509,196 Grangeville—Bank of Camas Prairie 50,000 50,000 927,076 Idaho Falls- Anderson Bros. Bank 100,000 100,000 2,767,315 Farmers & Merchants Bank 150,000 15,000 2,194,794 Kimberly—Bank of Kimberly 35,000 11,000 490,218 Kay—Union Central Bank 30,000 1,700 134,255 Menan—Jefferson State Bank 25,000 157,894 Meridian—Meridian State Bank 25,000 238,648 Murtaugh—Bank of Murtaugh 25,000 2,500 153,133 Nezperce—Union State Bank. 50,000 10,000 413,681 Oakley—Farmers Commercial & Savings Bank. 25,000 10,000 304,076 Orofino—Bank of Orofino 25,000 5,000 430,272 Picabo—Picabo State Bank 25,000 2,500 209,140 Pocatello— Citizens Bank ' 100,000 20,000 1,612,815 Stockgrowers Bank & Trust Co 155,500 14,000 2,094,324 Potlatch—Potlatch State Bank 50,000 10,000 873,663 Rexburg—Farmers & Merchants Bank 50,000 10,000 466,232 St. Anthony—St. Anthony Bank & Trust Co... 30,000 24,000 733,526 Star—The Farmers Bank 25,000 5,000 278,192 Sugar City—Freemont County Bank 25,000 4,000 312,693 Sweet—Farmers & Stockgrowers Bank 25,000 350 174,271 Teton City—First State Bank 30, 000 114,405 Twin Falls—Twin Falls Bank & Trust Co 100,000 50,000 2,719,395 Victor—Victor State Bank 25,000 2,500 210,068 Astoria—Scandinavian American Bank . 100,000 15,000 1,942,311 Enterprise—Enterprise State Bank 50,000 15,000 630,878 Hood River—Butler Banking Co 100,000 20,000 1,399,617 Joseph—First Bank of Joseph 50,000 10,500 435,255 Marshfield— Bank of Southwestern Oregon 100.000 12,500 1,077,747 Scandinavian American Bank 25,000 5,000 334,292 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

257 EXHIBIT I—STATE BANK MEMBERSHIP. Total Capital. Surplus. resources. DISTRICT NO. 12—Continued. OREGON—continued. Moro—Farmers State Bank $25,000 $3,900 $352,133 North Portland—Live Stock State Bank 100,000 25,000 2,370,276 Oregon City—Bank of Oregon City 100,000 50,000 1,817,366 Pendleton—The Inland Empire Bank 250,000 946,203 Portland— Hibernia Savings Bank 200,000 100,000 5,051,535 Ladd & Tilton Bank 1.000,000 1,000,000 30,100,367 Tillamook—Tillamook County Bank 40,000 10,000 673,554 UTAH. Brigham City—Security Savings Bank 50,000 15,000 729,233 Cedar City- Bank of Southern Utah 75,000 65,000 710,865 Iron Commercial & Savings Bank 50,000 2,500 262,614 Delta—Delta State Bank 25,000 6,000 423,606 Duchesne—Bank of Duchesne 25,000 2,500 225,941 Helper—Helper State Bank 50,000 25,000 524,059 Kaysville—Barnes Banking Co 50,000 70,000 478,435 Logan- Cache Valley Banking Co 100,000 23,000 1,168,529 Farmers & Merchants Savings Bank 100,000 17,500 573,082 Thatcher Bros. Banking Co 150,000 50,000 1,869,328 Magna-Magna Banking Co 25,000 3,000 171,126 Monticello—Monticello State Bank 25,000 2,500 101,779 Myton—The Myton State Bank 25,000 10,000 275,665 Ogden—Ogden Savings Bank 150,000 150,000 1,946,656 Payson—Pay son Exchange Savings Banks 50,000 25,000 896,118 Price— Carbon County Bank 89,569 6,671 314,888 Price Commercial & Savings Bank 50,000 60,000 879,818 Provo— Farmers & Merchants Bank 100,000 5,000 1,128,731 Knight Trust & Savings Bank 300,000 25,000 2,659,286 Richfield— James M. Peterson Bank 50,000 40,000 1,003,592 State Bank of Sevier 45,000 45,000 786,450 Salt Lake City— Deseret Savings Bank - 500,000 300,000 6,133,613 McCornick & Co., Bankers 600,000 120,000 14,330,453 Tracy Loan & Trust Co 222,600 103,500 733,062 Utah Savings & Trust Co 300,000 25,329 2,113,206 Walker Bros., Bankers 500,000 100,000 13,178,239 Spanish Fork—Commercial Bank 50,000 10,000 387,987 Vernal—Bank of Vernal 60,000 15,000 625,200 WASHINGTON". Albion—Albion State Bank 25,000 6,000 182,639 Almira— Almira State Bank 50,000 10,000 589,513 Farmers State Bank 25,000 6,000 294,864 Centralia—Centralia State Bank 100,000 10,000 618,683 Chehalis—Ooffman Dobson Bank & Trust Co. 150,000 100,000 2,480,069 Colfax—First Savings & Trust Bank of Whitman County 50,000 15,000 591,889 Ellensburg—The Farmers Bank -•. 50,000 50,000 1,684,726 Enumclaw— Peoples State Bank 25,000 6,250 486,240 State Bank of Enumclaw 30,000 10,000 686,502 Farmington—Bank of Farmington 25,000 5,000 371,978 Hoquiam—Lumbermans Bank 100,000 15,500 1,252,625 Lacrosse— First State Bank 60,000 30,000 801,351 Security State Bank 30,000 6,045 208,737 Molson—Molson State Bank 25,000 5,000 329,286 Odessa—Farmers & Merchants Bank 25,000 3,000 412,457 Port Townsend—Merchants Bank 75,000 25*000 946,951 Pullman—Pullman State Bank 37,500 10,000 714,487 Reardan—Farmers State Bank 50,000 20,000 732,602 Renton— The Citizens Bank of Renton 25,000 5,000 684,907 Renton State Bank 25,000 2,500 94,138 Rosalia—Bank of Rosalia 25,000 5,000 500,893 St. John—Farmers State Bank 25,000 4,000 412,637 Seattle- Dexter Horton Trust & Savings Bank 400,000 100,000 8,158,744 The Marine Bank 200,000 50,000 800,124 Metropolitan Bank 200,000 100,000 4,781,785 Scandinavian American Bank 1,000,000 500,000 22,839,881 South Bellingham— Northwestern State Bank 100,000 70,000 2,071,342 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

258 ANNUAL REPORT OP THE FEDERAL RESERVE BOARD. Total Capital. Surplus. resources. DISTRICT NO. 12—Continued. WASHINGTON—continued. Spokane— Spokane & Eastern Trust Co SI,000,000 $200,000 $15,218,957 The Washington Trust Co 200,000 40,000 1,196,810 Stanwood— Bank of Stanwood 25,000 10,000 691,943 Citizens State Bank 25,000 2,500 105,720 Tekoa— Citizens State Bank 25,000 12,000 582,481 Tekoa State Bank 30,000 15,000 539,605 Toppenish— Central Bank of Toppenish - 50,000 20,000 662,174 Traders Bank 25,000 10,000 858,787 Walla Walla—Farmers Savings Bank 200,000 40,000 2,254,332 Wilbur—The State Bank of Wilbur 50,000 10,000 729,059 Yakima—Yakima Valley Bank 100,000 23,000 2,364,388 Total 31,596,469 15,757,195 655,576,800 Statement showing membership of State banks and trust companies in the Federal Reserve System up to and including Dec. 31, 1919, classified by districts as to number of banks, capital, surplus, and resources. Number District. of Capital. Surplus. Total resources. banks. No. 1—Boston 36 $30,475,000 $33,758,000 $692,319,838 No. 2—New York 122 138,803,200 168,184,861 4,207,562,560 No. 3—Philadelphia... 38 23,225,000 47,102,000 359,317,169 No. 4—Cleveland 97 36,152,425 63,597,560 782,901,856 No. 5—Richmond 46 11,592,750 7,387,090 163,570,888 No. 6—Atlanta 64 21,216,000 13,363,245 367,145,101 No. 7—Chicago 326 83,022,000 71,011,363 1,683,694,386 No. 8—St. Louis 68 24,400,000 19,797,141 392,409,088 No. 9—Minneapolis 86 8,033,422 2,360,160 104,794,215 No. 10—Kansas City.. 47 5,705,000 2,576,513 110,103,110 No. 11—Dallas 114 7,432,500 2,658,475 89,315,563 No. 12—San Francisco 137 31,596,469 15,757,195 655,576,800 Total 1,181 421,653,766 447,553,603 9,608,710,574 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

259 EXHIBIT I—STATE BANK MEMBERSHIP. Abstract of condition reports of State bank and trust company members of the Federal Reserve system as of Dec. 31,1918, Mar. 4, June 30, Nov. 17 and Dec. 31,1919. [In thousands of dollars.] Dec. 31, Mar. 4, June 30, Nov. 17, Dec. 31. 1918— 1919— 1919— 1919— 1919— 930 banks. 969 banks. 1,042 banks.1,135 banks.1,181 banks. RESOURCES. Loans and discounts 3 630 678 3,731,973 4 318,722 5,046,940 5,249,833 Overdrafts. . . 3,383 3,120 3,944 5,827 5,362 Customers' liability under letters of credit. 12,959 8,352 11,768 1,193 1,016 Customers' liability account of acceptances. 168,713 168,964 179,925 196,090 231,019 Liberty bonds (exclusive of Liberty bonds borrowed). . . . .. 375,045 311,424 293,548 329,800 335,752 Other United States bonds (exclusive of Un U i n te i d te d S ta S t t e a s t e V s i b c o to n r d v s n b o o t r e r s owed) 3, 883 6;547 1 1 9 5 1 , , 8 6 9 3 7 3 15 5 0 , , 9 9 5 0 4 9 13 9 1 , , 8 0 5 5 1 7 United States certificates of indebtedness.. 321,977 819,012 360,286 293,217 307,026 War savings and thrift stamps actually owned. 1,714 1,145 975 1,254 1,327 Stock of Federal Reserve Bank 22,545 22,983 23,661 25,384 25,850 Other bonds, stocks, etc. (exclusive of securities borrowed) 1,097,597 1,132,795 1,131,988 1,268,888 1,300,952 Banking house.... 105 050 106,510 115,219 129,154 132,434 Furniture and fixtures.. ... 7,401 7,860 9,263 10,624 11,164 Other real estate owned 22 046 23 084 22,937 25,119 25,748 Lawful reserve with Federal Reserve Bank. 474,579 4&3,426 514,805 562,813 591,702 Items with Federal Reserve Bank in process of collection. 61,498 64,106 82,197 l?l,010 122,640 Due from banks and bankers 543,316 497,151 545,838 610,039 676,704 Gold coin and certificates ?0,4?8 17,091 18,955 18,002 17,692 All other cash in vault 133,592 111,582 116,780 135,679 165,756 Exchanges for clearing house, also checks on banks in same place 307,918 181,024 364,918 374,116 146,317 Outside checks and other rash items 35,395 22,230 36'. 152 56,561 64,653 Approximate interest earned but not collected 17,170 16 ?85 21,169 20,635 24,257 < )ther assets 115,226 64,397 72,002 35,105 35,595 Total 7,482,113 7,801,061 8,452,582 9,424,313 9,913,707 LIABILITIES. Capital stock paid in 350,110 360,468 371,979 412,869 436,244 Surplus fund 409,680 415,006 420,934 441,264 454,930 Undivided profits, less expenses and taxes paid 93,315 99,991 110,351 135,458 115,321 Approximate interest and discount collected but not earned , ... . 8,111 8,753 11,191 13,660 15,809 Amount reserved for taxes accrued 15,007 18,570 19,569 18,694 15,681 Amount reserved for interest accrued 9', 156 12,241 10,512 20,865 10,592 Due to Federal Reserve Bank... 1,109 2,606 964 2,167 1,324 Due to banks and bankers 628,139 606,0:9 676,852 722,618 755,303 Certified and cashiers' or treasurers' checks outstanding.... .... 137,844 222,423 276,343 303,064 Demand deposits 1 3,851,970 3,717,482 4,09?,481 4 592,270 4 834,830 Time deposits 1,361,020 1*440,371 1,558,940 1,996,405 2,165,786 United States deposits. . 160,464 295,228 337,432 117,977 201,710 Bills payable with Federal Reserve Bank.. 342,009 461,768 376,995 395,417 309,197 Bills payable other than with Federal Reserve Bank 18,963 8,624 9,852 15,504 14 311 Cash letters of credit and travelers' checks outstanding. 16,335 7,588 7,8?4 7,121 8,087 Acceptances 175,523 182,093 194,551 206,567 233,379 Other liabilities 41,202 26,400 29,73? 49,114 38,139 Total 7,482,113 7,801,061 8,452,582 9,424,313 9,913,707 Liability for rediscounts, including: those with Federal Reserve Bank 228,044 138 854 175 934 270 334 326 289 Ratio of reserve with Federal Reserve Bank to net deposit liability (per cent) 11.0 11.0 10.8 10.4 10.4 1 Includes certified and cashiers' or treasurers' checks outstanding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

260 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Exhibit J.— FOREIGN BRANCHES AUTHORIZED. The Federal Reserve Board, during the year 1919, authorized the establishment of foreign branches and subbranches of national banks as follows: National City Bank, New York, N. Y.: Spain— Date authorized. Madrid Jan. 15,1919 Subbranch—Barcelona Jan. 15,1919 Cuba— Subbranches—Santa Clara, Ciego de Avila, Caibarien, and Sancti Spiritus Jan. 24,1919 Subbranches—Havana (2), Union del Reyes, Pinar del Rio, Colon, Bayamo, Remedios, Placetas, Neuvitas, Cruces, Artemisa, and Yaguajay Mar. 17,1919 Argentina— Subbranches—Rosario and Buenos Aires (2) Jan. 29,1919 Brazil— Subbranches—Porto Alegre and Rio Grande do Sul Jan. 29,1919 Australia— Sydney Mar. 12,1919 Subbranch—Melbourne Mar. 12,1919 British South Africa— Cape Town Mar. 12,1919 Subbranches—Durban, Port Elizabeth, and Johannesburg. Mar. 12,1919 Venezuela— Subbranch—Ciudad Bolivar Mar. 12,1919 Trinidad- Port of Spain Mar. 12,1919 Jamaica— Kingston Mar. 12,1919 Dutch West Indies— Island of Curacao Mar. 12,1919 Egypt- Alexandria Mar. 17,1919 Colombia— Bogota June 4,1919 Subbranches—Medellin, Antioquia, Cartagena, Barranquilla, and Buenaventura June 4,1919 Uruguay— Subbranch—Montevideo June 10,1919 Exhibit K.—FIDUCIARY POWERS GRANTED TO NATIONAL BANKS. The following is a complete list of national banks which have been granted fiduciaiy powers to December 31, 1919. For a description of the powers granted see footnotes on page 269. The Federal Reserve Act, as amended September 26, 1918, after naming certain powers which may be granted to national banks, when not in contravention of State or local law, authorizes the Federal Reserve Board under such circumstances to grant permission to act in any other fiduciary capacity in which State banks, trust companies, or other corporations which come into competition with national banks are permitted to act under the laws of the State in which located. Where this general power has been granted in addition to certain specific powers, the footnote describing the powers is followed by an asterisk. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT K—FIDUCIARY POWERS GRANTED. 261 DISTRICT NO. 1. DISTRICT NO. 1—Continued. CONNECTICUT. MASSACHUSETTS—continued, (See also District No. 2.) Plymouth Plymouth National Bank.3 Provincetown First National Bank.i Ansonia Ansonia National Bank.1 Reading First National Bank.3 Bristol Bristol National Bank.2 Salem Merchants National Bank.i Hartford First National Bank.* Southbridge Southbridge National Bank.i Phoenix National Bank.1 Springfield Chapin National Bank.1 Middletown Middletown National Bank.3 Chicopee National Bank.i Naugatuck Naugatuek National Bank.3 Springfield National Bank.2 New Britain New Britain National Bank.1 Tisbury Martha's Vinevard National New Haven First National Bank.2 Bank.2 Merchants National Bank.2 Turner Falls Crocker National Bank.n National Tradesmens Bank.3 Wareham National Bank of Wareham.3 Second National Bank.1 Watertown Union Market National Bank.* Yale National Bank.3 Webster First National Bank.3 New London National Bank of Commerce.25 Worcester Mechanics National Bank.3 New London City National Merchants National Bank.1 Bank.9 Worcester National Bank.3 Torrington Torrineton National Bank.10 Woburn Woburn National Bank.14 Wallingford First National Bank.1 Uxbridge Blackstone National Bank.* Waterbury Citizens National Bank.11 ManufacturerfNational Bank.1 NEW HAMPSHIRE. Waterbnry National Bank.1 Berlin City National Bank.6 Claremont Claremont National Bank.3 MAINE. Concord First National Bank.1 Bangor First National Bank.12 Mechanics National Bank.15 Bar Harbor First National Bank.5 National State Capital Bath Bath National Bank.2 Bank.15 Belfast City National Bank.* Dover Merchants National Bank.4 Lewiston Manufacturers ISiational Strafford National Bank.3 Bank " Keene Ashuelot National Bank.15 Norway Norway National Bank.2 Keene National Bank.3 Portland Canal National Bank.1 Manchester Amoskeag National Bank.15 First National Bank.1* Manchester National Bank.6 Portland National Bank.12 Merchants National Bank.15 Nashua Indian Head National MASSACHUSETTS. Bank.4 A A r d n a h m e s r st F F G i i r r r a s s . t t l N N oc a a k t t i i o N o n n a a a t l l i o B B na a a l n n k k B . . 2 1 ank.11 N W e o w lf p e o bo rt r o C S W e it o c iz l o f e n e n d b s o r N o N at a N i t o i a o n t n i a o l a n l a B l B an a B n k a k . n 1 . 5 1 k 5 .15 Beverly Beverly National Bank.* Boston Boylston National Bank.1 RHODE ISLAND. First National Bank.11 Newport Aqtiidneck National Bank.* Fourth-xVtlantic National Bank.1 VERMONT. M N N P Se e a a e c o t t r o i i p c o o n l h n n e d a s a a n N l l N ts U S a a t h N n t i i a o i o a o w n n t n a i m a o l l B n u B a t B a l a n a B n k B n k a . k a 3 n . . 1 n k 3 k .- . ' 1 B B B a r e a r n r t n t e l i e n b g o to ro n P V C P e e o e o o u r p p m n l l t e e o y s s n t N N N a N a a t t t i a i i o o o ti n n n o a a a n l l l a B l B B a a a B n n n k a k k n . . . 1 1 1 k.2 E B Fa d ro l f l f c a R k r t t i o o v w n e r n M H E M B W d r o a B B e e o g m s t b a a c a s a s n e n a k c r t s o k t k t e N o o o m . . r 1 1 i n w a t e t n N t i & P o N a N n o t a a c i a A o t l a t i i t n s o o l B s a a n n e l a s a t a n l B l k N N B a B .3 n a a a a k n t t n i i . k k o o i . . n n 1 4 a a l l W B B M S P S p t o e r . o i r a l u n i l n A n n o l d t t d g l w p s n b o f o e e s i a n l r e y i n F l e s d r a lls W N C S F F F i t i i i a F r e a t r r t i s s s l t a z i t e d t t o l e e l n n s N N N N n s a . 4 a a a l a N N t t t t i i i i a B o a o o o t t n n n n i a i o a a o a a n l l l n l n k a a B B B B l l o a a a a B B f n n n n a a k k k k n n B . . . . 4 3 k 3 3 k e . . l 3 3 lows F F i o t x c b h o b r u o r g F Sa o f x e b ty o r F o u N n a d t i N on a a ti l o B na a l n k B .1 ank.1 DISTRICT NO. 2. Gardner First National Bank.1 CONNECTICUT. G G l r o e u at c e B st a e r r r ington N Ca a p ti e o n A a n l n M N a a h t a i i o w n e a l B B a a n n k k .1 .i (See also district No. 1.) Haverhill Essex National Bank." Bridgeport City National Bank.i First National Bank.3 Connecticut National Bank.i Merrimack National Bank.3 First-Bridgeport Nationa Holyoke City National Bank.3 Bank.1 Holyoke National Bank.;! Danbury City National Bank.1 Lawrence Bay State National Bank.1 Danbury National Bank.1 Leominster Leominster National Bank.3 G reenwich Greenwich National Bank.1 Merchants National Bank."* Norwalk National Bank of Norwalk.3 Lowell Old Lowell National Bank.6 Ridgefleld First National Bank.1 Lynn Central National Bank.2 Soufti Norwalk City National Bank.3 ManufacturersNationalBank.1 Stamford First National Bank.1 National City Bank.13 Marlboro First National Bank.3 NEW JERSEY. Peoples National Bank of Marlborough.1 (See also district No. 3.) Methuen National Bank of Methuen.2 Asbury Park Merchants National Bank.i New Bedford First National Bank.1 Atlantic Highlands. .Atlantic Highlands National Merchants National Bank.i Bank.4 Newburyport Merchants National Bank.2 Belvidere Belvidere National Bank.2 North Adams North Adams National Bank.1 Bloomfield .Bloomfield National Bank.3 Northampton Northampton National Bank.1 Boonton Boonton National Bank.1 Pittsfield Agricultural National Bank.2 Boundbrook First National Bank.3 Pittsfield National Bank.3 Cranbury First National Bank.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 ANNUAL REPORT OF THE FEDERAL. RESERVE BOARD. DISTRICT NO. 2—Continued. DISTRICT NO. 2—Continued. NEW JERSEY—continued. NEW YORK—continued. Dover National Union Bank.3 Jamestown National Chautauqua County Elizabeth National State Bank." Bank. 2 Frenchtown Union National Bank.is Kingston Round out National Bank.i Hoboken First National Bank.3 Little Falls Little Falls National Bank.1 Jersey City First National Bank.1 Lockport National Exchange Bank.i Lambertville Lambertville National Niagara County National Bank.1 Bank.i Long Branch Citizens National Bank.* Middletown Merchants National Bank.1 First National Bank.3 Mineola First National Bank.& Morristown First National Bank.1 Morristown Frontier National Bank.5 National Iron Bank.* Mount Vernon First National Bank.i Newark Merchants National Bank.3 New York Citr American Exchange National National Newark & Essex Bank.i Banking Co.1 Atlantic National Bank.i National State Bank.1 Bank of New York NBA.1 North Ward National Bank.s Bronx National Bank.5 New Brunswick National Bank of New Chase National Bank.i Jersey.1 Chatham & Phenix National.* Peoples National Bank.3 Chemical National Bank.2 Orange Orange National Bank.2 Citizens National Bank.2 Second National Bank.1 Coal & Iron National Bank.* Passaic Passaic National Bank.1 First National Bank.1 Paterson First National Bank.™ Garficld National Bank.i Paterson National Bank.1 Gotham National Bank.i Second National Bank.1 Hanover National Bank.2 Perth Amboy First National Bank.i Harriman National Bank.i Phillipsburg.* Phillipsburg National Irving National Bank.i Bank.2 Liberty National Bank.i Plainfield City National Bank.3 Lincoln National Bank.i Red Bank Second National Bank.1 Mechanics & Metals National Rutherford Rutherford National Bank.3 Bank.* Somerville Second National Bank.3 Merchants National Bank.i South River First National Bank.1 National Bank of Commerce.2 Sussex Farmers National Bank.3 National City Bank.i National Park Bank.i NEW YORK. Seaboard National Bank.i North Tonawanda... State National Bank.i Albany First National Bank.& Norwich Chenan?o National Bank.2 National Commercial Bank.2 National Bank of Norwich.1 New York State National Nyack Nyack National Bank.i Bank.5 Ogdensburg. National Bank of Ogdens- Amsterdam First National Bank.1 burg.2 Auburn Cayuga Countv National Oneida Oneida Valley National Bank.a Bank.i National Bank of Auburn.5 Oneonta Citizens National Bank.i Brooklyn First National Bank.1 Wilber National Bank.i Nassau National Bank.1 Ovid First National Bank.0 Buffalo Manufacturers & Traders Peekskill Peekskill National Bank.i National Bank.1 Westchester County Nation Canandaigua Canandaigua National Bank.i Bank.1 Plattsburg City National Bank.s Canton First National Bank.1 Plattsburg National Bank.1 St. Lawrence County Na- Port Chester First National.1 tional Bank." Port Jervis First National Bank.i Carthage Carthage National Bank.1 National Bank of Port Jervis.* Catskill Catskill National Bank.2 Poughkeepsie Fallkill National Bank.i Clayton National Exchange Bank.5 Farmers & Manufacturers Cooperstown First National Bank.1 National Bank.i Second National Bank.2 Richfield Springs First National Bank.* Corning First National Bank.2 Riverhead Suffolk County National Cuba Cuba National Bank.1 Bank.5 Dunkirk Lake Shore National Bank.1 Rochester Lincoln National Bank.* Merchants National Bank.i Rome Farmers National Bank.i Edwards Edwards National Bank.5 Saratoga Springs First National Bank.* Elmira Merchants National Bank.™ Southampton First National Bank.2 Second National Bank.1 Stapleton Richmond Borough National Far Rockaway National Bank of Far Rocka- Bank.& way.5 Tarrytown Tarrytown National Bank.7 Geneva Geneva National Bank.s Troy Union National Bank.i Glens Falls Merchants National Bank.2 Utica Oneida National Bank.i Gloversville City National Bank.i Utica City National Bank.i Fulton County National Vernon National Bank of Vernon.« Bank.1 Walton First National Bank.i Goshen National Bank of Orange Watertown Jefferson County National County.1 Bank.i Granville Farmers National Bank.5 Watertown National Bank.4 Washington County National Westfield National Bank of Westfield.5 Bank .& Hempstead F irst N ational B ank. 1 DISTRICT NO. 3. Herkimer Herkimer National Bank.2 Hoosick Falls Peoples National Bank.2 DELAWARE. Homell Citizens National Bank.i Hudson Farmers National Bank.i Frederica First National Bank.s First National Bank.i Laurel Peoples National Bank.2 Ilion Tlion National Bank.i Milford First National Bank.i Ithaca First National Bank.i Seaford First National Bank.' Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT K—FIDUCIARY POWERS GRANTED. 263 DISTRICT NO. 2—Continued. DISTRICT NO. 2-Continued. NEW JERSEY. PENNSYLVANIA—continued. (See also district No. 2.) Stroudsburg First National Bank.3 Atlantic Citv Union National Bank.4 S T u am nb a u q r u y a T F a ir m st a N qu a a ti o N n a a t l i o B n a a n l k B .1 ank.1 C B a u m rli d n e g n t on A M N a t e l t c a i h o n a n t n f a r i l c C s S i t N t a v t a e t N io B a n t a i a n o l k n B . a 1 l a n B k a . n 1 k.' W T T i o o e p g s t t a o C n hester N G Fi r a r a t s n io t g n N e a a N l t B i a o t a n i n o a k n l a o B l f a B T n a o k n p .1 k to .s n.3 C E H a l a m p d e d e o r M nf a i y el d H F M i a r e d s r d t c o h N n a a n fi t t e i s o l d n N a N a l t a i B o ti a n o n a n k l a . B l 1 a B n a k n . k s .1 West Grove N N a C a t t i o i o o u n n n a a t l y l B .1 B an a k n k o fW of e stG C r h o e v s e te .3 r P Sa ri l n e c m e ton F Sa ir le st m N N at a io ti n o a n l a B l a B n a k n . k 3 ing Co.1 Wilkes-Barre W Se y co o n m d i n N g a N tio at n i a o l n a B l a B nk a . n 1 k.1 Swedesboro Swedesboro National Bank.1 Williamsport First National Bank.1 Trenton Broad Street National Bank.3 West Branch National Bank.' First National Bank.1 Williamsport National Bank.1 Mechanics National Bank.1 Wrightsville First National Bank.1 Ventnor City Ventnor City National Bank.1 York Industrial National Bank of Woodbury First National Bank.1 West York.s Western National Bank.1 PENNSYLVANIA. (See also district No. 4.) DISTRICT NO. 4. Allentown Allentown National Bank.1 KENTUCKY. Merchants National Bank.2 (See also district No. 8.) Annville Annville National Bank.3 Atglen Atglen National Bank.* Brooksville First National Bank.3 B B e e t ll h e l v e i h ll e e m B B e e t l h le l v eh il e le m N N at a i t o i n o a n l a l B B an a k n . k * .1 M Ne o w un p t o r S t terling A M m o e u r n ic tS an te r N lin a g ti N on a a ti l o B na a l n B k a . n 19 k.s Bloomsburg L B e lo h o ig m h s V bu a r ll g e y N N at a io ti n o a n l a l B B a a n n k k . . 1 2 S P o ar m is e rset F F i i r r s s t t N N a a t t i i o o n n a a l l B B a a n n * k . . 1 i 9 Blossburg Miners National Bank.s Williamsburg First National Bank.3 Boyertown National Bank of Boyertown.s Catasauqua National Bank of Catasau- OHIO. qua.1 Akron First-Second NationalBank.w Clearfield Clearfield National Bank.i National City Bank.20 County National Bank.1 Bellaire First National Bank.20 Danville First National Bank. * Bucyrus First National Bank.so DuBois Deposit National Bank.1 Canton First National Bank.s DuBois National Bank.3 Cincinnati Atlas National Bank.20 Emaus Emaus National Bank.1 Citizens National Bank.11 Emporium First National Bank.1 Fifth-Third National Bank.w Ephrata Farmers National Bank.* First National Bank." Greencastle First National Bank.1 Second National Bank.1' Harrisburg Merchants National Bank, a Cleveland First National Bank.1* Hazleton Hazleton National Bank, a National City Bank.11 Huntingdon First National Bank.1 Union Commerce National Union National Bank.2 Bank.11 Jenkintown Jenkintown National Bank.4 Columbus City National Bank.1* Johnstown First National Bank.2 Commercial National Bank.s Lancaster Conestoga National Bank.4 Huntington National Bank.1' Fulton National Bank.1 Ohio National Bank.1* Lansdale First National Bank.3 Coshocton Commercial National B ank.2° Lititz Farmers National Bank.' Dayton Merchants National Bank.20 Mahanoy City Union National Bank.2 Winters National Bank.20 Manheim Keystone National Bank.1 Defiance First National Bank.20 Marietta Exchange National Bank.a Merchants National Bank.20 Maytown Maytown National Bank.3 Fostoria Union National Bank.11 Mount Carmel Union National Bank.1 Gallon Citizens National Bank.20 Mountville Mountville National Bank.3 Hamilton First National Bank.20 Myerstown Myerstown National Bank.3 Hillsboro Merchants National Bank." Nanticoke First National Bank.3 Lebanon Lebanon National Bank.20 Nazareth Nazareth National Bank.1 Mansfield Citizens National Bank.o Newville First National Bank.3 Marietta Central National Bank.20 Oxford National Bank of Oxford.1 First National Bank.2" Patton First National Bank.s Massillon Merchants National Bank.20 Pen Argyle First National Bank.s Painesville Painesvilte National Bank.1* Philadelphia CornExchangeNationalBank.1 Ravenna Second National Bank.20 Eighth National Bank.3 Sidney Citizens National Bank.6 Fourth Street National Bank.* Steubenville National Exchange Bank.11 National Bank of German- Tiffin Tiffin National Bank.11 town.2 Toledo Northern National Bank.s Ninth National Bank.1 Troy First National Bank.11 Penn National Bank.1 Urbana Citizens National Bank.6 Philadelphia National Bank.1 Wilmington Clinton County National Quaker City National Bank.s Bank.20 S T U o e n u x io t t h i n l w e N a N r a k a ti t o N io n a n a t a l i o l B n B a a a n l n k B k .2 a .1 nk.3 Y Za o n u e n s g v s i t l o le w n F F i i r r s s t t N N a a t t i i o o n n a a l l B B a a n n k k . . 2 5 o Philipsburg Moshanan National Bank.1 Old Citizens National Bank.i Pittston First National Bank.1 PENNSYLVANIA. Pottstown National Bank of Pottstown.1 National Iron Bank.1 (See also district No. 3.) Reading Reading National Bank.1 Ellwood City First National Bank.1 Penn National Bank.3 Franklin Iamberton National Bank.1 Red Lion Red Lion National Bank.1 Greensburg First National Bank.1 Scranton Third National Bank.1 Greenville First National Bank.s Spring City National Bank of SpringCity.1 Grove City First National Bank.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. DISTRICT NO. 4—Continued. DISTRICT NO. 5—Continued. PENNSYLVANIA—continued. VIRGINIA—continued. Meadville New First National Bank.1** Charlottesville National Bank of Charlottes- New Castle First National Bank.1 ville.3 Oakmont First National Bank.e Peoples National Bank.1 Oil City Oil City National Bank.1 Chatham First National Bank.4 Pittsburgh Bank of Pittsburgh N. A.i Clifton Forge Clifton Forge National Bank.3 Duquesne National Bank.1 First National Bank.1 Monongahela National Bank.s Covington Citizens National Bank.3 National Bank of America.3 Covington National Bank.3 Peoples National Bank.& Danville First National Bank.3 Second National Bank of Harrisonburg First National Bank.4 Allegheny.1 Lexington Rockbridge National Bank.1 Third National Bank.1 Martinsville Peoples National Bank.3 Union National Bank.1 Newport News First National Bank.3 Western National Bank.1 Norfolk National Bank of Commerce.3 Punxsutawney Punxsutawney National Seaboard National Bank.1 Bank.1 Petersburg Virginia National Bank4 Sharon McDowell National Bank.3 Reedville Commonwealth N a t i o n al Titusville Second National Bank.1 Bank.4 Warren Warren National Bank.1 Richmond American National Bank.3 Washington Citizens National Bank.1* First National Bank.1 , First National Bank.1 Merchants National Bank.1 Zelienople Peoples National Bank.3 Roanoke American National Bank.3 National Exchange Bank.1 WEST VIRGINIA. Rocky Mount Peoples National Bank.3 South Boston Planters & Merchants Na- (See also district No. 5.) tional Bank.3 Staunton Augusta National Bank.1 New Cumberland First National National Valley Bank.3 Wheeling National Bank of West Vir- Warrenton Fauquier National Bank.1 ginia.1 Winchester Shenandoah Valley National Bank.3 DISTRICT NO. 5. WEST VIRGINIA. DISTRICT OF COLUMBIA. (See also district No. 4.) Washington N N a a to t t i i n o o . n n 3 a a l l M B e a t n r k o po o l f i ta W n a B sh an in k g .2 - C Fa la ir rk m s o b n u t r g N E U m a n t i p i o o i n n r e a N l N a B t a i a t o i n o n k n a l a o l f B B a F n a a k n ir . k 3 m .3 ont.1 MARYLAND. F G a r i a r f v to ie n w F F i i r r s s t t N N a a t t i i o o n n a a l l B B a a n n k k . . 3 1 Baltimore Merchants-Mechanics First Huntington First National Bank.1 National Bank.1 Madison Madison National Bank.3 Second National Bank.2 Parkersburg Parkers burg National Bank.1 Cumberland Second National Bank.1 Frederick Farmers & Mechanics Na- DISTRICT NO. 6. tional Bank.3 Hagerstown Second National Bank.1 ALABAMA. Hyattsville First National Bank.3 Anniston Anniston National Bank.11 New Windsor First National Bank.3 First National Bank.3JS Rising Sun National Bank of Rising Sun.3 Bessemer Bessemer National Bank.3 Rockville Montgomery County National Birmingham First National Bank.1 Bank. * Cullman Leeth National Bank.3 Salisbury Salisbury National Bank.1 Florence First National Bank.2 Gadsden First National Bank 4 NORTH CAROLINA. Mobile First National Bank.2 C H El h i i g a z h r a l b o P e t o t t e h i n t C ity C C F M i o o t r e B m m i s r o a t c m m n n h a k e a e l & r . r n 1 c c t B i i s a a a l C l n & i N N k ti . a a z 1 t t e F i i n o o a s n n r a a m l l N e B B r a s a a t i n n o k k N n . . a 3 a 1 l - S T M T P e u i a o e l l s m l d n c a t m a a d g l e o o o g o m n a s t e a ry C T C F F F i i i a i i r r t r t l y y s s s la t t t N d N N N N e a a g a a a t t t a t i t i i i o i o o o o N n n n n n a a a a a a l l t l l l i B B o B B B n a a a a a a n n n n n l k k k k k . . B 2 . . . 2 1 2 4 a 5 nk.3 Goldsboro Wayne National Bank.1 FLORIDA. N O e x w fo r B d ern N Fi a r t s i t o n N a a l ti B o a n n al k B of a n N k e . w 3 Bern.3 B D r e a F d u e n n i t a o k w S n prings...F F i i r r s s t t N N a a t t i i o o n na a l l B B a a n n k k . . 3 3 Jacksonville Barnett National Bank.3 SOUTH CAROLINA. Pensacola National Bank of Commerce.15 Charleston Atlantic National Bank.1 St. Petersburg Central National Bank.4 Peoples National Bank.3 First National Bank.3 Columbia National Loan & Exchange Tampa First National Bank.2 Bank.1 Greenville First National Bank.1 GEORGIA. Fourth National Bank.3 Atlanta Lowry National Bank.3 Peoples National Bank.3 Fitzgerald Exchange National Bank.3 Lake City Farmers & Merchants Na- La Grange LaGrange National Bank.2 tional Bank.3 Macon Fourth National Bank.3 Orangeburg Edisto National Bank.1 Quitman First National Bank.17 Rock HiJl National Union Bank.1 Winder Winder National Bank.1 Spartanburg Central National Bank.3 York First National Bank.3 LOUISIANA. (See also district No. 11.) VIRGINIA. Alexandria First National Bank.2 Abingdon First National Bank.1 Crowley First National Bank of Acadia Alexandria Citizens National Bank.3 Parish .10 First National Bank.3 Lake Charles Calcasieu National Bank of Appalachia First National Bank.e Southwest Louisiana.21 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT K—FIDUCIARY POWERS GRANTED. 265 DISTRICT NO. 6—Continued. DISTRICT NO. 7—Continued. MISSISSIPPI. INDIANA—continued. (See also district No. 8.) Edinburg Farmers National Bank.3 Elkhart First National Bank.1 Biloxi First National Bank.3 Fort Wayne Old National Bank.1 Canton First National Bank.3 Franklin Franklin National Bank.3 Laurel First National Bank.1 Goshen City National Bank.1 Meridian First National Bank.2 Greencastle First National Bank.4 Hammond First National Bank.* TENNESSEE. Indianapolis Fletcher-American National Bank.11 (See also district No. 8.) Kokomo Citizens National Bank.3 Howard National Bank.1 Dickson Citizens National Bank.10 LaPorte First National Bank.3 Fayetteville Elk National Bank.22 Liberty Union County National Harriman Manufacturers National Bank.4 Bank.3 Logansport City National Bank.2 Knoxville City National Bank.6 First National Bank.3 McMinnville Peoples National Bank.17 Marion First National Bank.3 Nashville American National Bank.1 Marion National Bank.1 Broadway National Bank.3 Michigan City Merchants National Bank.1 Cumberland Valley National Mishawaka First National Bank.3 Bank.3 Monrovia First National Bank.3 Fourth & First National Muncie Delaware County National Bank.2 Bank.1 Tennessee-Hermitage N a - Merchants National Bank.3 tional Bank.a New Carlisle First National Bank.4 New Castle First National Bank.1 DISTRICT NO. 7. Richmond First National Bank.1 Second National Bank.3 ILLINOIS. Rochester First National Bank.24 Rockville Rockville National Bank.3 (See also district No. 8.) Rushville Rush County National Bank.3 Rushville National Bank.3 Aurora Old Second National Bank.1 Russiaville First National Bank.4 Belvidere Second National Bank.3 Sheridan Farmers National Bank.2 Canton Canton National Bank.1 First National Bank.3 Casey First National Bank.3 South Bend First National Bank.3 Charleston National Trust Bank.1 Thorntown Home National Bank.4 Chicago Corn Exchange National Tipton Citizens National Bank.3 Bank.5 Valparaiso Farmers National Bank.3 First National Bank of Engle- Wabash Farmers & Merchants Nawood.3 tional Bank.3 National City Bank.1 Whiteland Whiteland National Bank.3 Chillicothe First National Bank.1 Wilkinson Farmers National Bank.4 Danville First National Bank.1 Winamac First National Bank.2 Decatur Citizens National Bank.1 Milliken National Bank.3 IOWA. National Bank of Decatur.3 Dixon Dixon National Bank.1 Arlington American National Bank.4 El Paso. Woodford County National Boone First National Bank.3 Bank.1 Burlington Merchants National Bank.1 Freeport First National Bank.1 Cedar Rapids Cedar Rapids National Bank.1 Galesburg First National Bank.1 Merchants National Bank.3 Joliet First National Bank.3 Charter Oak First National Bank.22 Joliet National Bank.1 Cherokee First National Bank.1 Kankakee City National Bank.3 Clarence First National Bank.3 Kewanee First National Bank.1 Clinton City National Bank.3 LaSalle LaSalle National Bank.3 Merchants National Bank.2& Macomb Union National Bank.1 Coon Rapids First National Bank.4 Marseilles First National Bank.3 Council Bluffs City National Bank.3 Mattoon National Bank of Mattoon.4 First National Bank.1 State National Bank.1 Decorah National Bank of Decorah.3 Monticello First National Bank.1 Des Moines Des Moines National Bank.3 Moweaqua First National Bank.4 Dubuque First National Bank.1 Peoria Central National Bank.1 Elkader First National Bank.1 Rockford Manufacturers National Emmetsburg Emmetsburg National Bank.8 Bank.1 Everly First National Bank.10 Rockford National Bank.3 Fairfleld First National Bank.2 Third National Bank.2 Fonda First National Bank.3 Glad brook First National Bank.4 Greenfield First National Bank.19 Hawarden First National Bank.17 (See also district No. 8.) Humboldt First National Bank.3 Independence First National Bank.3 Batesville First National Bank.3 Indianola First National Bank.4 Brazil Citizens National Bank.10 Kanawha First National Bank.4 First National Bank.3 Le Mars First National Bank.4 Riddell National Bank.3 Linn Grove First National Bank.1 Brookville Franklin County National Manchester First National Bank.3 Bank.3 Marengo First National Bank.3 National Brookville Bank.3 Marshalltown First National Bank.4 Cambridge City First National Bank.2 Miliord First National Bank.4 Crawfordsville Citizens INational Bank.3 Moniezuma First National Bank.3 E 1st on National Bank.2 Muscatine First National Bank.1 Dana First National Bank.4 Newell First National Bank.1 Dublin First National Bank.4 New Sharon First National Bank.10 Dyer First National Bank.3 Odebolt First National Bank.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

266 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. DISTRICT NO. 7—Continued. DISTRICT NO,8-Continued. IOWA—continued. ILLINOIS—continued. Oskaloosa Oskaloosa National Bank.4 Nashville Farmers & Merchants Na- Peterson First National Bank.3 tional Bank.1 R R R S S S S i i i t e o i o o b a p d y u u l n p e a x x t e O y o l y C R n a k i a t p y i ds F C F C F F F i i i i i i o r r r t r r i n s s s s s z t t t t t t e i n N N n N N N e s a a a a a n t t t N t t t i i i i i a o o o o o a l n n n n n t i a a a a a N o l l l l l n a B B B B B a ti l a a a o a a n n n B n n n k k k k a k a . . . l . . n 4 3 4 3 " k B .4 ank.10 V N Q S P O p i o a u ' t F a t n k i s n a r d o f t l c i m a a l e y o l l i i n d a s N F F F R F F i i i i i i o r r r r r c k s s s s s k t t t t t o e m N N N N N r i a a a a a N s t t t t t i i i i i a N o o o o o t n n i n n n a o a a a a a t n i l l l l l o a B B B B B n l a a a a a a B l n n n n n a k k k B k k n . . . . . a 2 i 2 k 1 3 6 n .1 k.4 Storm Lake Citizens National Bank.1 Story City First National Bank.3 INDIANA. Washington Washington National Bank.3 Waterloo Commercial National Bank.8 (See also district No. 7."* Leavitt & Johnson National Bank.3 Bedford Bedford National Bank.7 Waverly First National Bank.3 Evansville City National Bank.3 Webster City Farmers National Bank.3 Old State National Bank.1 First National Bank.1 Farmersburg First National Bank.27 Jeffersonville First National Bank.1 MICHIGAN. Mitchell First National Bank.3 Mt. Vernon First National Bank.3 (See also district No. 9.) New Albany New Albany National Bank.1 Princeton Farmers National Bank.18 Battle Creek Central National Bank.a Peoples American National Old National Bank.1 Bank.2 Bay City. First National Bank.8 Seymour First National Bank.1 Bent on Harbor Farmers & Merchants Na- Seymour National Bank.1 tional Bank.1 Tell City Citizens National Bank.' Birmingham First National Bank.3 Boyne City First National Bank.4 KENTUCKY. Detroit National Bank of Commerce.2 Flint First National Bank.3 (See also district No. 4.) Grand Rapids Old National Bank.1* Hillsdale First National Bank.3 Bowling Green American National Bank.^ Jackson National Union Bank.1 Danville Citizens National Bank.1 Lansing Capital National Bank.3 Farmers National Bank.2 Petoskey First National Bank.3 Elizabethtown First-Harden National Bank.1 Port Huron First National Bank.3 Glasgow Farmers National Bank.3 Rochester First National Bank.3 Harrodsburg First National Bank.1 Saginaw Second National Bank.3 Henderson Henderson National Bank.3 St. Claire Heights.. -Michigan National Bank.3 Hopkinsville First National Bank.1 Traverse City First National Bank.4 Lawrenceburg Anderson National Bank.7 Lawrenceburg National WISCONSIN. Bank.2 Lebanon Citizens National Bank.3 (See also district No. 9.) Marion National Bank.8 Louisville Louisville National Banking Antigo Langlade National Bank.1? Company.5 Appleton Citizens National Bank.1 National Bank of Kentucky.1 Beaver Dam Old National Bank.3 Morganfield Morganfield National B ank.3 Fond du Lac Commercial National Bank.1 Owensboro United States National Bank.4 Hartford First National Bank.11 Paducah City National Bank.1 Janesville First National Bank.3 First National Bank.4 Marinette First National Bank.1 Monroe First National Bank.3 MISSISSIPPI. Oshkosh City National Bank.3 Waukesha National Exchange Bank.3 (See also district No. 6.) West B*nd First National Bank.1 Greenville First National Bank.3 DISTRICT NO. 8. MISSOURI. ARKANSAS. (See also district No. 10.) Batesville First National Bank.11 Eldorado Citizens National Bank.1 Carrollton First National Bank.2 Fordyce First National Bank.3 Chillicothe First National Bank.1 Fort Smith Merchants National Bank.1 Columbia Boone County National Hot Springs Arkansas National Bank.1 Bank.3 Citizens National Bank.7 Exchange National Bank.3 Jonesboro First National B ank.1 Hannibal Hannibal National Bank.1 Little Rock England National Bank.* Kirksville Citizens National Bank.2 Mariana Lee County National Bank.3 Ridgeway .First National Bank.1 Newport First National Bank.2 St. Louis Merchants - Laclede National Texarkana State National Bank.1 Bank.s National Bank of Commerce.1 ILLINOIS. State National Bank.1 CSe8 also district No. 7.) First National Bank.3 A Be n l n le a v ille F F i i r r s s t t N N a a t t i i o o n n a a l l B Ba a n n k k . . 2 ' V S S e p e d r r i s a n a l g i i a l f l i e e s ld C U F i i n t r i i s z o t e n n N s N a t a N io ti a n o t a n io l a n l B a B a l n a k B n . k a 4 . n 3 k.3 Edwardsville Edwardsville National Bank.1* TENNESSEE. Jacksonville Ayers National Bank.3 Metropolis City National Bank.3 (See also district No. 6.) Mount Sterling: First National Bank.3 Murphysboro First National Bank.2 Memphis Central State National Bank .; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT K—FIDUCIARY POWERS GRANTED. 267 DISTRICT NO. 9. DISTRICT NO. 10—Continued. MICHIGAN. COLORADO—continued. (See also district No. 7.) Denver Colorado National Bank.1 Denver National Bank.1 Manistique First National Bank.3 First National Bank.1 Negaunee Neeaunee National Bank.* United States National Bank.* Eagle First National Bank of Eagle MINNESOTA. County.3 Englewood First National Bank.3 Albert Lea First National Bank.2 Fort Collins First National Bank.3 Austin Austin National Bank.1 Poudre Valley National First National Bank.* Bank." Bemidii First Natonal Bank.1 Fort Morgan First National Bank.3 Crookston Merchants National Bank.2 Grand Junction Grand Valley National Bank.1 Duluth American National Bank.2 Greeley First National Bank.1 City National Bank.* Greeley National Bank.1 First National Bank.2 Union National Bank.3 Fergus Falls Fergus Falls National Bank.2 Hugo First National Bank.4 Minneapolis Metropolitan National Bank.t Idaho Springs First National Bank.3 Midland National Bank.2 Las Animas First National Bank.3 Northwestern National Bank.5 Longmont American National Bank.1 Owatonna First National Bank.1 Loveland First National Bank.18 National Farmers Bank.7 Loveland National Bank.10 Red "Wing Goodhue County National Sterling Farmers National Bank.1 Bank.i Trinidad First National Bank.4 St. Peter First National Bank.2 Walsenburg First National Bank.i Stillwater First National Bank.i Waseca Farmers National Bank.1 KANSAS. Wells First National Bank.i Winona Winona National Bank.1 Anthony First National Bank.3 Coffeyville First National Bank.22 MONTANA. Fort Scott Citizens National Bank.11 Goodland Farmers National Bank.3 Billings Merchants National Bank.3 Horton. First National Bank.3 Montana National Bank.i Hutchinson First National Bank.3 Bozeman Commercial National Bank.3 Independence Commercial National Bank.1 Great Falls Great Falls National Bank.3 Jewell City First National Bank.4 Kalispell First National Bank.3 Lawrence Lawrence National Bank.* Lewistown First National Bank.10 Luray First National Bank.4 Miles City First National Bank.1 Ottawa Peoples National Bank.3 Missoula Western Montana National Pittsburg National Bank of Commerce.' Bank.2 Sabetha National Bank of Sabetha.3 Salina Farmers National Bank.3 NORTH DAKOTA. Topeka F N a a r t m io e n r a s l N B a a t n io k n a o l f A B m an e k r . i 3 ca ' Ellendale First National Bank.3 Troy First National Bank.4 Fonnan First National Bank.4 Winfield First National Bank, i Grand Forks First National Bank.1 MISSOURI. SOUTH DAKOTA. (See also district No. 8.) B A A r r b o l e i o n r k d g i e t n o e g n n s A F F i i b r r e s s t t r d N N ee a a n t t i i o o N n n a a a t l l i o B B n a a a n n l k k B . . 3 1 ank.3 C C a a r m th e a ro g n e C Fi e r n s t t r a N l a N ti a o t n io al n a B l a B nk an .4 k.4 C L Fl a o a k l n m e d a P r n e r a e u s ton F F F i i i r r r s s s t t t N N N a a a t t t i i i o o o n n n a a a l l l B B B a a a n n n k k k . . . 3 4 3 Kansas City D C r o B o m a v n m e k r o s . 1 n 1 N w a e t a io lt n h a l N Ba a n t k i . o 3 nal Rapid City First National Bank.11 Fidelity National Bank & Sioux Falls Minnehaha National Bank.3 Trust Co.i S W W p a e e b t a e r s r f t i t e s o r h w n F A S F S i i e i m o r r c s s u e u t t x r r N i N i c F ty a a a a n t t l N i i l o o s N a n n N t a a a io l l t a i n t o B B i a o n a a l n a n n B l a k k l a . B . 4 1 n B a k a n . n 3 k k .4 .2 Neosho I M N F F n i i e T i t r r w d e s s r w t r t u E s N N s e t n t a s a a g t t C t t e l i i o a o o N . N n 2 n n d a a a a t t l l i N i o o B B a n n a a t a a i n n l o l k k n . B . ^ B a 1 l a a n B n k k a . 1 nk & .i St. Joseph American National Bank.3 WISCONSIN. Burnes National Bank.3 Tootle-Lacy National Bank.2 (See also district No. 7.) Ashland Ashland National Bank.1 NEBRASKA. Northern National Bank.11 Butte First National Bank.* Barron First National Bank.4 Decatur First National Bank.4 Clintonville First National Bank.3 Lyons First National Bank.4 Neenah National Manufacturers Bank.4 Norfolk Norfolk National Bank.4 Superior First National Bank.™ Omaha First National Bank.3 Merchants National Bank. ? DISTRICT NO. 10. United States National Ban k. • Ord First National Bank.3 COLORADO. Utica First National Bank.2* Boulder Boulder National Bank.» NEW MEXICO. Citizens National Bank.10 Canon City Freemont County National (See also district No. 11.) Bank.3 Center First National Bank.3 Las Vegas San Miguel National Ban k l Colorado Springs E F x ir c s h t a N ng at e i o N n a al t io B n a a n l k B .1 ank.i R Sa a n to ta n Fe F F i i r r s s t t N N a a t t i i o o n n a a l l B B a a n n k k . . 1 11 Digitized for FRAS1E7R8 983—20 18 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

268 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. DISTRICT NO. 10—Continued. DISTRICT NO. 11—Continued. OKLAHOMA. TEXAS—continued. (See also district No. 11.) Greenville Greenville National Exchange Bank.3 Ada First National Bank.io Houston National Bank of Commerce.!1 Lawton City National Bank.is McKinney First National Bank.3 McAlsster American National Bank.6 Marshall First National Bank.4 Muskogee First National Bank.* Marshall National Bank.3 Oklahoma City F L A a i m b rm e e r r e t i y c rs a N n N a N a t t i a i o o t n i n o a a n l l a B B l a B a n n a k n k . k . 1 3 .™ P P O a o r l a r e n t s g A ti e n r t e h ur F F R i i o r r s y s t t a l N N N a a t a t i i t o o io n n n a a l a l l B B B a a n a n k n k . k . s i .3 Security National Bank.2 San Angelo Central National Bank.3 P Sh o a n w d n C e r e e ek N Fa a r t m io e n r a s l N B a a t n io k n o a f l C B o an m k m .3 erce.4 F Sa ir n s t A N n a g t e i l o o n N al a B tio an n k al . i Bank.4 Tulsa Central National Bank.i Western National Bank.i Exchange National Bank.is San Antonio Lockwood National Bank. 1 Woodward F F i i r r s s t t N N a a t t i i o o n n a a l l B B a a n nk k . . 4 12 S S e h a e l r y m an C Se o a m ly m N er a c t i i a o l n N al a B tio a n n a k l . 3 Bank.i - Stanton First National Bank.4 WYOMING. Texarkana Texarkana National Bank.i Troup First National Bank.e B Bu as ff i a n l o F F i i r r s s t t N N a a t t i i o o n n a a l l B B a a n n k k .™ .3 T V y ic le to r r ia C V i i t c iz to e r n i s a N N a a t t i i o o n n a a l l B B a a n n k k . . 4 3 Casper W Ca y s o p m er in N .2 a ; ti N o a n t a i l o n B a a l n B k. a 3 nk.3 W Wa ic c h o i ta Falls C Fi it r y st N N a a t t i i o o n n a a l l B B a a n n k k . . i 2 Cheyenne Citizens National Bank.i National Bank of Commerce.3 First National Bank.i First National Bank.i Stock Growers National Bank.i DISTRICT NO. 12. Cody Shoshone National Bank i& Evanston First National Bank.* ALASKA. Kemmerer First National Bank.3 Laramie First National Bank.4 Fairbanks First National Bank.i Powell First National Bank.2 Rawlins R Fi a r w st l i N ns a t N io a n t a io l n B a a l n B k a .i nk.4 CALIFORNIA. Rock Springs First National Bank.2 Bakersfield First National Bank.i Rock Springs National Bank.i Calexico First National Bank.s Sheridan First National Bank.i Chico Butte County National Bank.i Shoshoni First National Bank.2 Fresno Farmers National Bank.i Fullerton Farmers & Merchants Nation- DISTRICT NO. 11. al Bank.5 Los Angeles Continental National Bank.6 ARIZONA. Farmers & Merchants National Bank.i Nogales First National Bank.2 Mountain View First National Bank.5 Oakland Central National Bank.i Tucson Arizona National Bank. 1 Orland First National Bank.5 Consolidated National Bank.3 Pasadena National Bank & Trust Co. * Pleasanton First National Bank.5 LOUISIANA. Redwood City First National Bank of Mateo County.so (See also district No. 6.) Sacramento Capital National Bank.i National Bank of D. O. Mills Shreveport Commercial National Bank 3 & Co.11 First National Bank.3 San Francisco B A a m n e k r i o c f a n C a N li a fo ti r o n n ia a , l N Ba . n A k .i .5 NEW MEXICO. Santa Barbara First National Bank.i (See also district No. 10.) Visalia First National Bank.5 Wilmington First National Bank.s Albuquerque State National Bank.3 Carlsbad First National Bank.i IDAHO;. Roswell Citizens National Bank.4 First National Bank.4 Boise Boise City National Bank.6 Silver City Silver City National Bank.31 First National Bank of Idaho.25 TEXAS. Hagerman First National Bank.6 Hailey Hailey National Bank.4 Abilene Citizens National Bank.& Moscow First National Bank.3 Amarillo First National Bank.3 Payette First National Bank.i Austin American National Bank.4 Weiser First National Bank.i Beaumont First National Bank.3 Bonham First National Bank. < NEVADA. Brownwood Citizens National Bank. 1 Campbell Campbell National Exchange Tonopah Nevada First National Bank.- Bank.* Colorado City National Bank.3 OREGON. Corsicana Corsicana National Bank 3 Dallas City National Bank.i Ashland First National Bank.1 National Bank of Commerce.3 Corvallis First National Bank.3 Tenison National Bank.3 Eugene First National Bank.3 Denison State National Bank.i Harrisburg First National Bank.4 El Paso City National Bank.i Junction City First National Bank.is Fort Worth First National Bank.12 Marshfield First National Bank of Coos Fort Worth National Bank. 3 Bay.i Stock Yards National Bank.3 Medford Medford National Bank.1 , Gal vest on First National Bank.3 Milton First National Bank.3 j i Granger First National Bank.32 Ontario First National Bank.29 ^ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT L—ACCEPTANCES TO 100 PER CENT. 269 DISTRICT NO. 12—Continued. DISTRICT NO. 12—Continued. OBEGON—-continued. WASHINGTON—continued. Pendleton American National Bank.3 Ellensburg Washington National Bank.4 Portland F F i i r r s s t t N N a a t t i i o o n n a a l l B B a a n n k k . . 3 3 E M v o e u r n e t t t V ernon F F i i r r s s t t N N a a t t i i o o n n a a l l B B a a n n k k . . i 4 United States National Bank.1 Oroville First National Bank.* Salem Capital National Bank.1 Pullman First National Bank.10 Seattle Dexter Horton National UTAH. Bank.1 First National Bank.3 Salt Lake City Continental National Bank.* National Bank of Commerce.1 National City Bank.3 Deseret National Bank.3 Seattle National Bank.1" Union National Bank.1 WASHINGTON. Spokane Exchange National Bank.1 Vancouver Vancouver National Bank.3 Bellingham Bellingham National Bank.3 Walla Walla Baker Boyer National Bank.1 First National Bank.33 First National Bank.1 Clarkston First National Bank.1 Third National Bank.23 C1 o T lf r a u x s tee, executor, a F d a m rm in e i r s s t r N at a o t r i , o n re a g l i B st a ra n r k . o 3 f stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics.* * Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics. 3 Trustee, executor, administrator, and registrar of stocks and bonds. 4 Trustee, executor, and administrator. 5 Registrar of stocks and bonds. 6 Trustee. 7 Trustee, executor, administrator, guardian of estates, assignee, receiver, and committee of estates of lunatics.* 8 Trustee, executor, administrator, and guardian of estates.* 9 Trustee, executor, administrator, guardian of estates, and receiver.* 0 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and receiver. 1 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and receiver.* 2 Trustee, executor, and registrar of stocks and bonds. 3 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, and receiver. 14 Trustee, executor, administrator, assignee, and receiver.* 5 Trustee and registrar of stocks and bonds. 6 Trustee, executor, administrator, registrar of stocks and bonds, assignee, and receiver. 17 Trustee, executor, administrator, guardian of estates, assignee, receiver, and committee of estates of lunatics. •8 Trustee, executor, administrator, guardian of estates, assignee, and receiver.* " Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, receiver, and committee of estates of lunatics.* 20 Trustee, and registrar of stocks and bonds.* 31 Trustee, executor, administrator, guardian of estates, assignee, receiver, and committee of estates of lunatics.* 22 Trustee, executor, administrator, and guardian of estates. 23 Trustee, administrator, and registrar of stocks and bonds. 24 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, and receiver.* 25 Trustee, executor, administrator, registrar of stocks and bonds, and guardian of estates. 26 Trustee, executor, administrator, guardian of estates, assignee, and receiver. 27 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and committee of estates of lunatics. 28 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, and assignee. 29 Executor and administrator. 30 Trustee, executor, administrator, guardian of estates, receiver, and committee of estates of lunatics.* 31 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and committee of estates of lunatics.* s2 Trustee and executor. 33 Trustee, executor, administrator, registrar of stocks and bonds ,and guardian of estates.* Exhibit L.—ACCEPTANCES TO 100 PER CENT. The following banks have been granted authority by the Federal Reserve Board to accept drafts and bills of exchange up to 100 per cent of their capital stock and surplus: DISTRICT NO. 1. Connecticut: Hartford Hartford Aetna National Bank. Phoenix National Bank. Norwich Thames National Bank. Maine: Portland Canal National Bank. Portland National Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

270 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Massachusetts: Boston Beacon Trust Co. Commonwealth Trust Co. First National Bank. Fourth-Atlantic National Bank, International Trust Co. Merchants National Bank. National Shawmut Bank. National Union Bank. Old Colony Trust Co. Second National Bank. State Street Trust Co. Webster & Atlas National Bank. Dedham Dedham National Bank. Fall River Massasoit-Pocasset National Bank. Fitchburg Safety Fund National Bank. New Bedford First National Bank. New Bedford Safe Deposit & Trust Co. Springfield Springfield National Bank. Worcester Merchants National Bank. Rhode Island: Providence Blackstone Canal National Bank. Merchants National Bank. National Bank of Commerce. Providence National Bank. DISTRICT NO. 2. Connecticut: Bridgeport City National Bank. New Jersey: Hoboken First National Bank. Newark National Newark & Essex Banking Co. New Brunswick National Bank of New Jersey. Paterson Hamilton Trust Co. Paterson National Bank, New York: New York American Exchange National Bank. Atlantic National Bank. Bankers Trust Co. Bank of America. Bank of Manhattan Co. Bank of New York, N. B. A. Central Union Trust Co. Chase National Bank. Chemical National Bank. Citizens National Bank. Columbia Trust Co. Corn Exchange Bank. Equitable Trust Co. Farmers Loan & Trust Co. Fifth Avenue Bank. First National Bank. Franklin Trust Co. Guaranty Trust Co. Harriman National Bank. Importers & Traders National Bank. Irving National Bank. Liberty National Bank. Mechanics & Metals National Bank. Mercantile Bank of the Americas. Mercantile Trust & Deposit Co. Merchants National Bank. National Bank of Commerce. National City Bank. National Park Bank. New Netherlands Bank. Scandinavian Trust Co. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT L—ACCEPTANCES TO 100 PER CENT. 271 New York—Continued. New York Seaboard IM ational Bank. Second National Bank. U. S. Mortgage & Trust Co. W. R. Grace & Co.'s Bank. Utica First National Bank. Utica Trust & Deposit Co. DISTRICT NO. 3. Pennsylvania: Philadelphia Bank of North America. Corn Exchange National Bank. First National Bank. Fourth Street National Bank. Girard National Bank. Market Street National Bank. Philadelphia National Bank. Tradesmen's National Bank. DISTRICT NO. 4. Kentucky: Lexington Phoenix & Third National Bank. Ohio: Akron First-Second National Bank. Cincinnati Fifth-Third National Bank. Cleveland Central National Bank. Cleveland Trust Co. First National Bank. Guardian Savings & Trust Co. Superior Savings & Trust Co. Union Commerce National Bank. Toledo Guardian Trust & Savings Bank. Pennsylvania: Pittsburgh Bank of Pittsburgh, N. A. First National Bank. Mellon National Bank. Peoples National Bank. Pittsburgh Trust Co. Union National Bank. Union Trust Co. DISTRICT NO. 5. Maryland: Baltimore Baltimore Trust Co. Drovers & Mechanics National Bank. Farmers & Merchants National Bank. Merchants-Mechanics First National Bank. National Bank of Commerce. National Exchange Bank. National Marine Bank. National Union Bank of Maryland. Second National Bank. North Carolina: Wilmington Murchison National Bank. South Carolina: Charleston Bank of Charleston, N. B. A. Peoples National Bank. Orangeburg Edisto National Bank. Rock Hill Peoples National Bank. Virginia: Danville First National Bank. Hampton Merchants National Bank. Norfolk Citizens Bank. Marine Bank. National Bank of Commerce. Norfolk National Bank. Seaboard National Bank. Virginia National Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

272 ANNUAL REPOKT OF THE FEDERAL RESERVE BOARD. Virginia—Continued Richmond American National Bank. Bank of Commerce & Trusts. First National Bank. Merchants National Bank. National State and City Bank. Planters National Bank. DISTRICT NO. 6. Alabama: Albany Central National Bank. Decatur City National Bank. Huntsville Henderson National Bank. Troy Farmers & Merchants National Bank. Florida: Jacksonville Atlantic National Bank. Pensacola Citizens & People's National Bank Georgia: Atlanta Atlanta National Bank. Fourth National Bank. Lowry National Bank. Cordele American National Bank. Macon Fourth National Bank. Macon National Bank. Savannah Citizens Trust Co. Citizens & Southern Bank. Hibernia Bank. National Bank of Savannah. Savannah Bank & Trust Co. Valdosta First National Bank. Louisiana: ' New Orleans Canal Commercial National Bank. Canal Commercial Trust & Savings Bank. Hibernia Bank & Trust Co. Interstate Trust & Banking Co. Marine Bank & Trust Co. New Orleans National Bank. Whitney-Central National Bank. Mississippi: Vicksburg Merchants National Bank. Tennessee: Chattanooga Hamilton National Bank. Clarksville First National Bank. DISTRICT NO. 7. Illinois: Chicago Chicago Trust Co. Continental & Commercial National Bank. Corn Exchange National Bank. Drovers National Bank. First National Bank. Fort Dearborn National Bank. Harris Trust & Savings Bank. Illinois Trust & Savings Bank. Live Stock Exchange National Bank. Merchants Loan & Trust Co. National Bank of the Republic. National City Bank. Union Trust Co. Indiana: Indianapolis Fletcher American National Bank. Michigan: Detroit First & Old Detroit National Bank. Wisconsin: Milwaukee First National Bank. DISTRICT NO. 8. Digitized for FRASMEiRss issippi: http://fraser.stlouisfed.Coragn/t on First National Bank. Federal Reserve Bank of St. Louis

EXHIBIT L ACCEPTANCES TO 100 PER CENT. 273 Missouri: St. Louis First National Bank. Liberty Bank. Mercantile Trust Co. Merchants-Laclede National Bank. Mississippi Valley Trust Co. National Bank of Commerce. Tennessee: Memphis Union & Planters Bank & Trust Co. Central State National Bank. DISTRICT NO. 9. Minnesota: Minneapolis First & Security National Banlsv Northwestern National Bank. St. Paul Capital National Bank. First National Bank. DISTRICT NO. 10. Kansas: Hutchinson First National Bank. Missouri: Kansas City First National Bank. Commerce Trust Co. National Bank of Commerce. St. Joseph First National Bank. DISTRICT NO. 11. Arizona: Nogales First National Bank. Texas: Austin American National Bank. Brownwood Brownwood National Bank. Dallas American Exchange National Bank. City National Bank. Tenison National Bank. Fort Worth .American National Bank. Fort Worth National Bank. National Bank of Commerce. Stockyards National Bank. Gainesville First National Bank. Hillsboro Citizens National Bank. Honey Grove State National Bank. Houston First National Bank. Houston National Exchange Bank. Lumbermans National Bank. National Bank of Commerce. South Texas Commercial National Bank. Union National Bank. Navasota First National Bank. Paris Lamar State Bank & Trust Co. San Angelo First National Bank. Terrell .First National Bank. American National Bank. Waco First National Bank. Waxahachie Waxahachie National Bank. DISTRICT NO. 12. California: San Francisco American National Bank. Anglo & London-Paris National Bank. Bank of California, N. A. Crocker National Bank. First National Bank. _ Wells Fargo-Nevada National Bank. Oregon: Portland First National Bank. Ladd & Tilton Bank. Northwestern National Bank. Digitized for FRASER United States National Bank. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

274 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Washington: Seattle.. .Dexter Horton National Bank. First National Bank. National Bank of Commerce of (Seattle. Seaboard National Bank. Seattle National Bank. Spokane. .Spokane & Eastern Trust Co. Old National Bank. Exchange National Bank. Exhibit M.—PERSONNEL AND SALARIES. Salaries of officers and employees of Federal Reserve Banks. FEDERAL RESERVE BANK OF BOSTON. Number of officers and Salaries. employees. Departments. 1915 1916 1917 1918 1919 1915 1916 1917 1918 1919 Chairman and Federal Reserve agent 1 1 1 1 1 $10,000 $10,000 $12,000 $12,000 $15,000 Governor 1 1 1 1 1 15,000 20,000 20,000 20,000 25;ooo Deputy governor 1 2 11,000 24,000 O B Bo a th n o e k k r k i n o e g e ff p ic d in e e r g p s a d rt e m p e a n rt t ment... 3 2 4 1 1 3 2 3 5 1 5 5 7 1 2 6 8 9 0 2 3 2 8 2 3 8 6 3 , , , 1 1 5 0 0 0 0 0 0 1 1 1 1 5 0 , , , 3 2 9 6 6 0 0 0 0 5 1 1 7 7 6 , , , 7 5 5 0 0 3 0 0 0 1 3 2 3 2 7 4 , , , 9 3 2 7 4 8 5 3 3 2 3 3 6 3 8 5 , , , 2 5 2 4 0 0 0 0 0 Transit department 3 25 30 126 187 2,100 24,460 24,964 75,635 188,240 Federal Reserve agent's department 2 3 4 15 14 2,500 3,680 7,100 17,400 21,780 Fiscal agency department 112 211 262 106,200 252,873 347,980 General 4 13 23 30 25 3,580 10,280 26,378 23,477 23,460 3 2,095 Total 20 71 248 585 755 50,880 105,940 288,372 609,081 982,400 FEDERAL RESERVE BANK OF NEW YORK (INCLUDING BUFFALO BRANCH). Chairman and Federal Reserve agent 1 1 $16,000 $16,000 $20,000 $20,000 $30,000 Governor 1 1 30,000 15,000 30,000 30,000 50,000 Deputy governor 4 2 20,000 45,000 81,000 51,000 Other officers 17 27 32,800 42,000 56,200 89,400 195,700 Banking department 892 1,297 60,588 97,552 301,648 945,360 1,608,220 Bookkeeping department... 42 78 4,620 10,700 15,360 47,680 100,560 Transit department 446 614 6,430 36,480 94,480 338,430 580,700 Federal Reserve agent's department 26 9,520 17,860 49,980 Fiscal agency department... 299 1,219 713 360,932 1,501,840 955,888 Capital issues 5 11,720 General 42 22 137 5,540 8,460 37,440 21,540 160,320 Total. 73 173 829 -2,657 2,896 155,978 246,192 970,580 3,104,830 3,782,368 FEDERAL RESERVE BANK OF PHILADELPHIA. Chairman and Federal Reserve agent 1 1 $10,000 $10,000 $10,000 $10,000 $15,000 Governor 1 1 20,000 20,000 20,000 20,000 25,000 Otherofflcers 7 9 5,000 10,200 21,250 37,000 51,500 Banking department 143 134 14,400 15,940 34,084 137,740 173,060 Bookkeeping department... 36 26 3,300 9,360 18,080 47,540 29,700 Transit department 186 5,880 24,180 47,790 79,560 176,904 Federal Reserve agent's department 11 5,976 7,140 8,060 7,880 27,130 Fiscal agency department... 63 23,160 102,240 76,640 General 216 12,480 14,672 16,848 32,080 237,440 Total. 423 647 77,036 111,492 199,272 474,040 812,374 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT M—PERSONNEL, AND SALARIES. 275 Salaries of officers and employees of Federal Reserve Banks—Continued. FEDERAL RESERVE BANK OF CLEVELAND (INCLUDING PITTSBURGH AND CINCINNATI BRANCHES). Number of officers and employees. Salaries. Departments. 1915 1916 1917 1918 1919 1915 1916 1917 1918 1919 Chairman and Federal Reserve agent 1 1 $10,000 $10,000 $12,000 $15,000 $20,000 Governor 1 1 18,000 20,000 20,000 20,000 25,000 Other officers 11 13 7,000 10,750 21,050 48,850 65,199 Banking department 129 175 16,900 13,430 23,800 155,418 232,819 Bookkeeping department... 5,160 4,380 19,080 35,280 41,580 Transit department 169 | 211 1,080 23,370 52,710 130,150 179,620 Federal Reserve agents' department 10 17 3,500 3,780 7,820 16,080 32,480 Fiscal agency department... 203 105 87,180 321,884 184,589 General 26 65 6,900 8,040 16,440 22,800 66,045 Total. 65 211 589 ! 626 68,540 93,750 260,080 765,462 847,332 FEDERAL RESERVE BANK OF RICHMOND (INCLUDING BALTIMORE BRANCH, OPENED MAR. 1, 1919). Chairman and Federal Reserve agent 1 1 1 1 1 $10,000 $10,000 $10,000 $10,000 $12,000 Governor 1 1 1 1 1 10,000 12,000 15,000 15,000 18,000 Other officers 2 2 4 6 11 5,978 9,428 14,550 16,359 50,800 Banking department 10 11 18 63 82 12,742 13,956 22,880 76,953 93,410 Bookkeeping department... 3 5 6 12 13 4,748 5,520 4,980 9,640 14,540 Transit department 7 36 43 79 157 2,278 11,599 21,954 59,485 125,228 Federal Reserve agent's department 1 1 2 4 9 945 916 2,400 7,202 19,900 Fiscal agency department... 20 40 54 21,024 54,930 63,330 General 5 6 14 48 73 6,439 8,819 8,540 36,810 83,560 Total . 30 63 109 254 401 53,130 72,238 121,328 286,379 480,768 FEDERAL RESERVE BANK OF ATLANTA (INCLUDING BIRMINGHAM, JACKSON- VILLE, NASHVILLE, AND NEW ORLEANS BRANCHES). Chairman and Federal Reserve agent 1 $7,500 $9,000 $10,000 $10,000 $10,000 Governor 1 9,000 9,000 10,000 10,000 15,000 Other officers 18 13,100 12,060 11,380 53,400 76,600 Banking department 98 23,928 21,828 37,690 92,770 113,850 Bookkeeping department... 32 3,600 5,100 6,480 17,100 33,000 Transit department 109 1,260 15,900 20,180 53,790 98,400 Federal Reserve agent's department 10 3,200 4,380 5,220 9,180 21,250 Fiscal agency department... 71 61,010 102,240 82,980 General 46 3,180 4,080 3,120 25,598 36,288 Total. 65 132 317 64,768 81,348 165,080 374,078 487,368 FEDERAL RESERVE BANK OF CHICAGO (INCLUDING DETROIT BRANCH). Chairman and Federal Reserve agent 1 1 $10,000 $10,000 $10,000 $12,000 $18,000 Governor 1 1 20,000 20,000 24,000 24,000 30,000 Other officers 18 25 14,000 17,500 33,500 79,000 132,000 Banking department 155 301 21,426 31,880 47,880 180,910 387,682 Bookkeeping department... 24 31 4,100 8,700 9,520 25,100 38,580 Transit department 124 8,700 30,240 49,280 109,160 207,236 Federal Reserve agent's department 11 17 7,200 7,800 13,800 17,120 33,460 Fiscal agency department... 292 277 215,930 354,370 365,538 General 189 247 11,134 20,985 61,130 183,800 274,091 Total. 815 1,199 96,560 147,105 465,040 985,460 1,586,587 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

276 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Salaries of officers and employees of Federal Reserve Banks—Continued. FEDERAL RESERVE BANK OF ST. LOUIS (INCLUDING LOUISVILLE, MEMPHIS, AND LITTLE ROCK). Number of officers and employees. Salaries. Departments. 1915 1916 1917 1918 1919 1915 1916 1917 1918 1919 Chairman and Federal Reserve agent.. 1 1 1 1 1 $10,000 $10,000 $10,000 $10,000 $15,000 Governor 1 I T 1 1 1 20,000 20 000 20 000 20,000 20,000 Other officers 2 2 8 13 14 13,500 13,500 35,500 55,500 66,300 Banking department 8 12 43 117 225 12,820 17,180 44,500 123,292 261,850 Bookkeeping department... 5 6 7 11 23 6,200 6,260 5,900 12,000 25,650 Transit department 14 24 50 60 114 9,660 16,140 34,620 57,540 72,350 Federal Reserve agent's department 3 3 2 5 8 5,900 5 900 3 340 7,920 10,950 Fiscal agency department. 59 126 104 65 840 132,620 156,700 General 5 4 6 51 51 2,820 2,820 4,920 47,000 24,100 Total 39 53 177 385 541 80,900 91,800 224,620 465,872 652,900 FEDERAL RESERVE BANK OF MINNEAPOLIS. Chairman and Federal Reserve agent S 7,500 $ 9,000 $10,000 $10,000 $12,000 Governor 15,000 15,000 18,000 18,000 12,000 Deputy governor ",000 Other officers 5 3,000 i 3,500 12,500 16,210 17,900 Banking department 88 11,940 15,850 29,120 56,629 104,380 Bookkeeping department 13 2,460 ] 5,540 6,040 6,078 14,560 Transit department 101 2,000 j 19,460 24,040 33,243 85,860 Federal Reserve agent's department J 14 j 5,520 4,080 4,580 5,636 28,300 Fiscal agency department...| 64 51,180 65,721 72,360 Total 20 54 127 267 287 j 47,420 I 72,430 155,460 ! 217,517 347,360 FEDERAL RESERVE BANK OF KANSAS CITY (INCLUDING OMAHA AND DENVER BRANCHES). Chairman and Federal Reserve agent 1 1 $7, 500 $7,500 $7,500 $9,000 $12,000 Governor 1 1 7,500 10,000 12,500 15,000 18,000 Other officers 12 15 6,000 8,800 I 17,400 60,000 64,400 Bookkeeping department... 16 18 6,120 4,500 | 5,340 20,180 26,860 Transit department 139 199 10,980 18,780 | 22,960 108,360 206,160 Federal Reserve agent's department 5 4,080 4,380 7,680 5,760 9,100 Fiscal agency department... 201 157 ! 93,190 219,810 194,890 General 15 105 186 13,460 18,460 ! 27,020 122,880 239,060 Total. 40 52 ! 153 583 55,640 72,420 i 193,590 560,990 770,470 FEDERAL RESERVE BANK OF DALLAS (INCLUDING EL PASO AND HOUSTON BRANCHES, THE LATTER OPENED AUG. 4, 1919). Chairman and Federal Reserve agent 1 1 1 1 $7,500 $9,000 $10,000 $10,000 i $14,000 Governor 1 1 1 1 10,000 10,000 12,000 12,000 15,000 Other officers 1 2 4 8 15 11,000 15,000 19,700 38,200 ! 62,800 Banking department 11 31 113 165 17,140 17,760 39,300 136,200 i 202,460 Bookkeeping department...! 2 7 13 23 1,620 5,100 6,360 12,840 ! 24,780 Transit department | 2 39 86 173 2,100 20,760 33,140 74,400 I 178,000 Federal Reserve agent's de- j partment j 2 2 5 16 7,400 3,700 3,700 10,860 ; 25,260 Fiscal agency department... • 75 162 89 60,690 191,104 118,260 General I 10 12 j 10 14 22 9,060 ii, 680 7,580 10, 960 ; 21,000 Total ! 31 63 170 403 505 65,820 93,000 192,470 ! 496,564 j 661,560 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT M—PERSONNEL AND SALARIES. 277 Salaries of officers and employees of Federal Reserve Banks—Continued. FEDERAL RESERVE BANK OF SAN FRANCISCO (INCLUDING SPOKANE, PORTLAND, SEATTLE, AND SALT LAKE CITY BRANCHES). Number of officers and employees. Salaries. Departments. 1915 1916 1917 1918 1919 1915 1916 1917 1918 1919 i Chairman and Federal Reserve agent 1 1 1 1 I 1 $12,000 $12,000 $14,000 $14,000 $18,000 1 1 1 1 1 15,000 15,000 18,000 18,000 18,000 2 3 10 18 25 10,200 12,200 39,500 68,280 117,900 Banking department 10 31 77 157 196 14,820 30,230 101,046 190,560 270,480 Bookkeeping department... 2 5 17 27 33 2,520 4,620 18,240 30,960 40,740 T Fe ra d n e s ra it l d R e e p s a e r r t v m e e a n g t ent's de- 1 15 31 64 100 780 11,640 28,740 62,940 108,720 3 2 3 10 16 7,000 1,620 3,420 16,224 33,560 Fiscal agency department 122 207 142 146,100 253,140 145,140 2 4 11 41 53 1,800 4,620 980 60,320 79,000 Capital issues 5 12,600 Total 22 62 273 531 567 64,120 91,930 370,026 727,024 831,540 SALARIES OF OFFICERS AND EMPLOYEES OF THE FEDERAL RESERVE BOARD AS OF DECEMBER 31, 1919. OFFICE OF THE SECRETARY. W. T. Chapman, secretary $6,000. 00 R. G. Emerson, assistant secretary 3, 600. 00 Staff: 1 at $3,600 3, 600. 00 1 at $2,500 2, 500. 00 1 at $2,240 2, 240. 00 1 at $2,000 2, 000. 00 5 at $1,800 9, 000. 00 2 at $1,700 3, 400. 00 1 at $1,680 1, 680. 00 3 at $1,500 4, 500. 00 6 at $1,440 8, 640. 00 3 at $1,320 3, 960. 00 1 at $1,200 1, 200. 00 1 at $1,100 1,100.00 1 at $1,020 1, 020. 00 1 at $600 600 1 at $360 (part time employee) - 360 1 at $120 (part time employee) 120 $55, 520. 00 OFFICE OF GENERAL COUNSEL. Geo. L. Harrison, general counsel ,. - 8, 500. 00 Milton 0. Elliott, consulting counsel 5, 000. 00 Walter S. Logan, assistant counsel 5,000. 00 Staff: 1 at $3,300 3, 300. 00 1 at $2,600 2, 600. 00 1 at $2,200 2, 200. 00 1 at $1,680 1, 680. 00 1 at $1,500 1, 500. 00 29,780 EXECUTIVE SECRETARY. W. W. Hoxton 10,000 FISCAL AGENT. W. li. imiay , - 4, 000. 00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

278 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. ARCHITECTS. A. B. Trowbridge, consulting architect $8, 663. 66 O. W. Ten Eyck, assistant architect. 4,000. 00 . $10, Wifi H6 OFFICES OF MEMBERS OF THE BOARD. Staff: 1 at $3,025 3, 025. 00 2 at $3,000 6,000.00 1 at $2,800 2, 800. 00 $1 at $2,600 2, 600. 00 1 at $2,500 2, 500. 00 % 1 at $2,400 2, 400. 00 3 at $1,440 4, 320. 00 23,645.00 DIVISION OF REPORTS AND STATISTICS. Morris Jacobson, statistician and chief of division 6,000. 00 E. L. Smead, assistant chief of division 4.000. 00 E. A. Goldenweiser, assistant statistician 3, 300. 00 Staff: 1 at $2,250 2, 250. 00 1 at $2,240 2, 240. 00 3 at $2,000 6, 000. 00 1 at $1,920 1, 920. 00 1 at $1,800 1, 800. 00 1 at $1,650 1, 650. 00 2 at $1,600 3, 200. 00 1 at $1,520 1, 520. 00 3 at $1,500 4,500.00 4 at $1,400 5, 600. 00 8 at $1, 320 10, 560. 00 1 at $1,200 1, 200. 00 2 at $1,100 2, 200. 00 1 at $1,000 1,000. 00 1 at $960 960. 00 1 at $840 840. 00 1 at $660 660. 00 61^ 400. 00 DIVISION OF OPERATIONS AND EXAMINATION. W. W. Paddock, chief of division 5, 500. 00 Examiners: John A. Will, chief Feder?l Reserve examiner 7,000. 00 James F. Herson, chief Federal Reserve examiner 5, 500. 00 W. J. Donald 4, 200. 00 George L. Hamilton 4, 200. 00 James Buchanan, jr 3, 600. 00 George A. Augherton 3,000.00 Ralph M. Chapman 3,000. 00 40,000.00 Assistant examiners: 2 at $2,700 5,400. 00 1 at $2,500 2,500.00 5 at $2,400 12,000. 00 1 at $2,200 2, 200. 00 1 at $2,100 2,100. 00 2 at $2,000 4,000.00 1 at $1,800 1,800.00 30,000.00 Office staff: 2 at $1,440 2, 880. 00 2 at $1,320 2, 640. 00 1 at $1,200 1, 200. 00 1 at $960 960.00 1 at $120 (part-time employee). 120. 00 7,800. 00 Digitized for FRASER 77, 800. 00 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT M-—PERSONNEL AND SALARIES. 279 DIVISION OF ANALYSIS AND RESEARCH. H. Parker Willis, director $5, 000. 00 Staff: 1 at |2,750 2, 750. 00 1 at $2,500... 2,500. 00 1 at $2,400 2,400. 00 1 at $2,000 2,000.00 1 at $1,800 1, 800.00 4 at $1,500 6,000. 00 1 at $1,440 1, 440. 00 1 at $1,320 1, 320. 00 2 at $1,200 2,400. 00 1 at $1,080 1,080. 00 1 at $1,000 1,000.00 $29, 690. 00 DIVISION OF FEDERAL RESERVE ISSUE AND REDEMPTION. Willard E. Buell, chief of division 3,000. 00 Staff: 1 at $2,250 2,250.00 1 at $1,800 1, 800.00 2 at $1,560 3,120. 00 2 at $1,440 2, 880. 00 1 at $1,320 1,320.00 1 at $1,260 1, 260. 00 5 at $1,200 6,000.00 9 at $1,140 10,260.00 38 at $1,020 38, 760. 00 1 at $720 720. 00 71,370.00 CURRENCY COUNTERS. Detailed to National Bank Redemption Division, office of the Comptroller of the Currency— 33 at 1,040 34, 320. 00 Detailed to National Bank Redemption Agency, office of the Treasurer of the United States— 78 at $1,040 81,120. 00 MESSENGERS. 1 at $1,140 1,140. 00 2 at $1,100 2, 200. 00 2 at $1,080 2,160. 00 4 at $840 3, 360. 00 8, 860. 00 CHARWOMEN. 3 at $240 720. 00 Total 464, 891. 66 SALARIES OF NATIONAL BANK EXAMINERS. [Effective in the year ending Dec. 31,1919.] Sidney B. Congdon, examiner at large, not assigned to any Federal Reserve district $4,000 DISTRICT NO. 1—BOSTON. (397 national member banks.) Daniel C. Mulloney, chief examiner $7,000 m 3 examiners, at $3,900; 1 examiner, at $3,600; 1 examiner, at $3,300; 1 examiner, at $2,400 21,000 28,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

280 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. DISTRICT NO. 2—NEW YORK. (637 national member banks.) Sherrill Smith, chief examiner $15, 000 1 examiner, at $4,500; 1 examiner, at $4,200; 3 examiners, at $3,600; 3 examiners, at $3,300; 1 examiner, at $3,000; 1 examiner, at $2,700; 2 examiners, at $2,400 39,900 $54, 900 DISTRICT NO. 3—PHILADELPHIA. (643 national member banks.) Edward I. Johnson, chief examiner 9, 000 examiner, at $4,800; 2 examiners, at $4,500; 1 examiner, at $4,000; 1 examiner, at $3,900; 1 examiner, at $3,600; 1 examiner, at $3,300; 4 examiners, at $3,000; 1 examiner, at $2,700; 2 examiners, at $2,400 48,100 57,100 DISTRICT NO. 4.—CLEVELAND. (749 national member banks.) Silas H. L. Cooper, chief examiner 8, 500 2 examiners, at $4,500; 1 examiner, at $4,200; 1 examiner, at $3,600; 1 examiner, at $3,300; 3 examiners, at $3,000; 1 examiner, at $2,700; 3 examiners, at $2,400 '. 39,000 DISTRICT NO. 5—RICHMOND. (543 national member banks.) James K. Doughton, chief examiner 8, 000 1 examiner, at $6,500; 1 examiner, at $4,200; 1 examiner, at $4,000; 2 examiners, at $3,600; 1 examiner, at $3,300; 3 examiners, at $3,000; 2 examiners, at $2,400 39, 000 47,000 DISTRICT NO. 6—ATLANTA. (364 national member banks.) J. William Pole, chief examiner 6, 500 2 examiners, at $4,200; 1 examiner, at $3,900; 2 examiners, at $3,600; 2 examiners, at $3,300; 1 examiner, at $2,700; 1 examiner, at $2,400.... 31, 200 37,700 DISTRICT NO. 7—CHICAGO. (1,049 national member banks.) Daniel V. Harkin, acting chief examiner 5, 500 2 examiners, at $4,500; 1 examiner, at $4,200; 6 examiners, at $3,900; 4 examiners, at $3,600; 1 examiner, at $3,300; 3 examiners, at $2,400 61, 500 67,000 DISTRICT NO. 8—ST. LOUIS. (473 national member banks.) John S. Wood, acting chief examiner 3, 900 2 examiners, at $4,500; 1 examiner, at $4,000: 1 examiner, at $3,600; 2 examiners, at $3,300; 2 examiners, at $3,000 29, 200 33,100 DISTRICT NO. 9—MINNEAPOLIS. (842 national member banks.) Fred Brown, chief examiner , 7, 000 2 examiners, at $4,200; 1 examiner, at $4,000; 1 examiner, at $3,600; 1 examiner, at $3,300; 4 examiners, at $3,000; 3 examiners, at $2,400 38, 500 45,500 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT M PERSONNEL, AND SALABIES. 281 • DISTRICT NO. 10—KANSAS CITY. (1,001 national member banks.) Stephen L. Newnham, chief examiner $7, 000 1 examiner, at $4,500; 2 examiners, at $4,200; 3 examiners, at $3,900; 1 examiner, at $3,600; 2 examiners, at $3,300; 2 examiners, at $3,000; 1 examiner, at $2,700; 3 examiners, at $2,400 50, 700 $57, 700 DISTRICT NO. 11—DALLAS. (641 national member banks.) Richard H. Collier, chief examiner 7, 500 1 examiner, at $4,000; 1 examiner, at $3,900; 4 examiners, at $3,600; 1 examiner, at $3,300; 1 examiner, at $3,000; 2 examiners, at $2,400. 33, 400 40,900 DISTRICT NO. 12.—SAN FRANCISCO. (598 national member banks.) H. R. Gaither, chief examiner 7, 500 1 examiner, at $5,000; 2 examiners, at $4,800; 2 examiners, at $3,600; 2 examiners, at $3,300; 1 examiner, at $3,000; 1 examiner, at $2,700; 1 examiner, at $2,400 36, 500 44,000 Grand total of annual salaries of examiners on Dec. 31, 1919 564, 400 RECAPITULATION. Examining staff: Chief examiners— At $15,000 per annum 1 At $9,000 per annum 1 At $8,500 per annum 1 At $8,000 per annum 1 At $7,500 per annum 2 At $7,000 per annum 3 At $6,500 per annum 1 At $5,500 per annum * 1 At $3,900 per annum l 1 Total chief examiners 12 Salaries, chief examiners $92, 400 Other examiners: At $6,500 per annum 1 At $5,000 per annum 1 At $4,800 per annum , 3 At $4,500 per annum 10 At $4,200 per annum 10 At $4,000 per annum 2 6 At $3,900 per annum 15 At $3,600 per annum 23 At $3,300 per annum 18 At $3,000 per annum 21 At $2,700 per annum 6 At $2,400 per annum 23 Total other examiners 137 Salaries, other examiners 472,000 Total examining staff 149 Total salaries 564,400 1 Acting. 2 Incluies one examiner at large. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

282 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Exhibit N.—DIRECTORY OF THE FEDERAL RESERVE BOARD AND FEDERAL RESERVE BANKS. FEDERAL RESERVE BOARD. EX OFFIGIO MEMBERS. W. P. G. HARDING, Governor. GARTER GLASS, ALBERT STRAUSS, Vice Governor. Secretary of the Treasury, Chairman. ADOLPH C. MILLER. JOHN SKELTON WILLIAMS, CHARLES S. HAMLIN. Comptroller of the Currency. HENRY A. MOEHLENPAH. GEORGE L. HARRISON, General Counsel. W. T. CHAPMAN, Secretary. H. PARKER WILLIS, Director, Division of Analysis and K. G. EMERSON, Assistant Secretary. Research. W. M. IMLAY, Fiscal Agent. M. JACOBSON, Statistician. W. W. PADDOCK, Chief, Division of J. E. CRANE, Operations and Examination. Acting Director, Division of Foreign W. W. HOXTON, Executive Secretary. Exchange. OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS.l DISTRICT NO. 1—FEDERAL RESERVE BANK OF BOSTON. [Frederic H. Curtiss, chairman and Federal Reserve agent; Allen Hollis, deputy chairman: Chas. A. Morss, governor.] Director. Residence. Term expires. • • " Class A: Thomas P. Beal Boston, Mass Dec. 31,1920 Edward S. Kennard Rumford, Me Dec. 31,1921 F. S. Chamberlain New Britain, Conn Dec. 31,1922 Class B: Philip R. Allen East Walpole, Mass Dec. 31,1920 Chas. G. Washbura Worcester, Mass Dec. 31,1921 Edmund R. Morse Proctor, Vt Dec. 31,1922 Class C: Frederic H. Curtiss Boston, Mass Dec. 31,1920 Allen Hollis Concord, N. H Dec. 31,1921 Jesse H. Metcalf Providence, R. I Dec. 31,1922 DISTRICT NO. 2—FEDERAL RESERVE BANK OF NEW YORK. [Pierre Jay, chairman and Federal Reserve agent; George Foster Peabody. deputy chairman; Benjamin Strong, governor.] Class A: R. H. Treman Ithaca, N. Y Dec. 31,1920 Charles Sn ith Oneonta, N. Y Dec. 31,1921 James S. Alexander New York, N. Y Dec. 31,1922 Class B: W B. Thompson2 Yonkers, N. Y Dec. 31,1920 L. R. Palmer Croton-on-Hudson, N. Y Dec. 31,1921 Charles A. Stone New York, N. Y Dec. 31,1922 Class C: W. L. Saunders New York, N. Y Dec. 31,1920 George Foster Peabody Saratoga Springs N Y Dec. 31,1921 Pierre Jay '. New York, N. Y Dec. 31,1922 DISTRICT NO. 2—BUFFALO BRANCH OF THE FEDERAL RESERVE BANK OF NEW YORK [R. M. Gidney, manager.] Harry T. Ramsdell Buffalo. N. Y Dec. 31,1920 Elliott C. McDougal . . do Do. Clifford Hubbell do Do. Ray M Gidnev do ... Do. Frank L. Bartlett Olean, N. Y Do. 1 Includes directors elected or appointed in Dec, 1919, for the three-year term beginning Jan. 1,1920. Digitized for F* RReAsSigEneRd Dec. 22,1919. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT N DIRECTORY. 283 Officers and Directors of Federal Reserve Banks—Continued. DISTRICT NO. 3—FEDERAL RESERVE BANK OF PHILADELPHIA. [Richard L. Austin, chairman and Federal Reserve agent; H. B. Thompson, deputy chairman; E. P. Passmore, governor.] Director. Residence. Term expires. Class A.- Joseph Wayne, jr... Philadelphia, Pa.. Dec.31,1920 Francis Douglas Wilkes-Barre, Pa. Dec.31,1921 M. J. Murphy Clarks Green, Pa.. Dec.31,1922 Class B: Edwin S. Stuart Philadelphia, Pa.. Dec.31,1920 Chas.K. Haddon... Camden, N. J. Dec.31,1921 Alba B. Johnson Philadelphia, Pa. Dec.31,1922 Class C: Richard L. Austin.. Philadelphia, Pa. Dec.31,1920 Charles C. Harrison. do Dec.31,1921 H. B. Thompson... Wilmington, Del. Dec.31,1922 DISTRICT NO. 4—FEDERAL RESERVE BANK OF CLEVELAND. [D. C. Wills, chairman and Federal Reserve agent, Lewis B. Williams, deputy chairman; E. R. Fancher, governor.] Class A: Robert Wardrop Pittsburgh, Pa Dec.31,1920 O. N. Sams Hilisboro, Ohio Dec.31,1921 Chess Lamberton Franklin, Pa Dec.31,1922 Class B: T. A. Combs Lexington, Ky Dec.31,1920 John Stambaugh Youngstown, Ohio.. Dec.31,1921 R. P. Wright Erie, Pa Dec.31,1922 Class C: D. C. Wills Cleveland, Ohio Dec.31,1920 H. P. Wolfe Columbus, Ohio Dec.31,1921 Lewis B. Williams Cleveland, Ohio Dec.31,1922 DISTRICT NO. 4—PITTSBURGH BRANCH OF THE FEDERAL RESERVE BANK OF CLEVELAND. [George DeCamp, manager.] Chas. W. Brown. Pittsburgh, Pa. Dec. 31,1920 James D. Gallery. .do. Do. Harrison Nesbit.. .do. Do. R. B. Mellon .do. Do. George DeCamp.. .do. Do. DISTRICT NO. 4—CINCINNATI BRANCH OF THE FEDERAL RESERVE BANK OF CLEVELAND. [L. W. Manning, manager.] Judson Harmon Cincinnati, Ohio, Dec. 31,1920 Charles A. Hinsch.. do Do. L. W. Manning .do.. Do. W. S. Rowe ..do., Do. George D. Crabbs . .do. Do. DISTRICT NO. 5-FEDERAL RESERVE BANK OF RICHMOND. [Caldwell Hardy, chairman and Federal Reserve agent; James A. Moncure, deputy chairman; George J. Seay, governor.] Class A: Edwin Mann Bluefield.W. Va.. Dec. 31.1920 Chas. E. Rieman Baltimore, Md. Dec. 31.1921 Clas J s . B F : . Bruton Wilson, N. C Dec. 31.1922 D. R.Coker Hartsville, S. C Dec. 31,1920 Edmund Strudwick Richmond, Va Dec. 31,1921 James F. Oyster Washington, D. C Dec. 31,1922 Class C: Caldwell Hardy Richmond, Va Dec. 31,1920 Howard Bruce Baltimore, Md Dec. 31,1921 James A. Moncure Richmond, Va Dec. 31,1922 178983—20 19 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

284 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Officers and Directors of Federal Reserve Banks—Continued. DISTRICT NO. 5—BALTIMORE BRANCH OF THE FEDERAL RESERVE BANK OF RICHMOND. [M. M. Prentis, manager.] Director. Residence. Term expires. M. M. Prentis ! Baltimore, Md. Dec. 31,1920 Chas.C. Homer j do Do. William Ingle ! do Do. Waldo Newcomer | do Do. H. B. Wilcox ! do Do. DISTRICT NO. 6—FEDERAL RESERVE BANK OF ATLANTA. [Jos. A. McCord, chairman and Federal Reserve agent; Edw. T. Brown, deputy chairman; M. B. Wellborn, governor.] Class A: ! P. R. Kittles j Sylvania, Ga Dec. 31.1920 John K. Ottley | Atlanta, Ga Dec. 31.1921 Oscar W. Newton i Jackson, Miss Dec. 31.1922 Class B: i gjLeon C. Simon New Orleans, La Dec. 31.1920 J. A. McCrary Decatur, Ga Dec. 31.1921 W. H. Hartford I Nashville, Tenn Dec. 31.1922 Class C: | Jos. A. McCord I Atlanta, Ga Dec. 31,1920 Edw. T. Brown J do Dec. 31.1921 W. H. Kettig Birmingham, Ala Dec. 31.1922 DISTRICT NO. 6—NEW ORLEANS BRANCH OF THE FEDERAL RESERVE BANK OF ATLANTA. [P. H. Saunders, chairman; Marcus Walker, manager.] R. S. Hecht New Orleans, La. Dec. 31,1920 Jno. E. Bouden, jr. .do.. Do. Frank W. Foote... Hattiesburg, Miss. Do. H. B.Lightcap.... Jackson, Miss Do. A. P. Bush Mobile, Ala Do. P. H. Saunders New Orleans, La.. Do. Marcus Walker do Do. DISTRICT NO. 6—BIRMINGHAM BRANCH OF THE FEDERAL RESERVE BANK OF ATLANTA. [W. H. Kettig, chairman; A. E. Walker, manager.] Oscar Wells Birmingham, Ala. Dec. 31,1920 T. O. Smith .do Do. W.W.Crawford. .do., Do. JohnH. Frye .do.. Do. W.H. Kettig.... .do.. Do. DISTRICT NO. 6—JACKSONVILLE BRANCH OF THE FEDERAL RESERVE BANK OF ATLANTA. [John C. Cooper, chairman; Geo. R. DeSaussure, manager.] E. W. Lane Jacksonville, Fla. Dec. 31,1920 BionH. Barnett. do Do. Giles L.Wilson.. .do., Do. Fulton Saussy... .do., Do. JohnC. Cooper... .do.. Do. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT N—DIBECTORY. 285 Officers and Directors of Federal Reserve Banks—Continued. DISTRICT NO. 6—NASHVILLE BRANCH OF THE FEDERAL RESERVE BANK OF ATLANTA. [W. H. Hartford, chairman; Bradley Currey, manager.] Director. Residence. Term expires. P M Davis Nashville, Term ... Dec. 31,1920 J. E.Caldwell .. do Do. E A Lindsey ;. . do Do. T. A. Embry Winchester, Tenn Do W H Hartford Nashville Tenn Do. DISTRICT NO. 6—SAVANNAH AGENCY OF THE FEDERAL RESERVE BANK OF ATLANTA. [R. J. Taylor, manager.] DISTRICT NO. 7—FEDERAL RESERVE BANK OF CHICAGO. [William A. Heath, chairman and Federal Reserve agent; James Simpson, deputy chairman; James B. McDougal, governor.] Class A: E. L. Johnson Waterloo, Iowa ! Dec. 31,1920 Geo. M. Reynolds Chicago, ill j Dec. 31,1921 Charles H. McNider Mason City, Iowa j Dec. 31,1922 Class B: Albert R. Erskine South Bend, Ind | Dec. 31,1920 A. H.Vogel Milwaukee, Wis Dec. 31,1921 John W. Blodgett Grand' R ~a pid"s , M"i"ch .' Dec.31,1922 Class C: j James Simpson J Chicago, 111 I Dec. 31.1920 Win. A. Heath IE vanston, 111 I Dec. 31.1921 E. T. Meredith Des Monies, Iowa Dec. 31.1922 DISTRICT NO. 7—DETROIT BRANCH OF THE FEDERAL RESERVE BANK OF CHICAGO. [R. B. Locke, manager.] John Ballantyne... Detroit, Mich. Dec. 31,1920 Emory W.Clark... .do. Do. Julius H. Haas .do. Do. Charles H. Hodges. .do. Do. R.B.Locke .do. Do. DISTRICT NO. 8—FEDERAL RESERVE BANK OF ST. LOUIS. [William McC. Martin, chairman and Federal Reserve agent; John W. Boehne, deputy chairman; David C. Biggs, governor.] Class A: Walker Hill St. Louis, Mo Dec. 31,1920 J. C. Utterback Paducah, Ky Dec. 31,1921 Sam A. Ziegler Albion, 111 Dec. 31,1922 Class B: LeRoy Percy Greenville, Miss ' Dec. 31,1920 Rolla Wells St. Louis, Mo l Dec. 31,1921 W. B. Plunkett Little Rock, Ark • Dec. 31,1922 Class C: John W. Boehne Evansville, Ind ' Dec. 31,1920 Wm. McC. Martin St. Louis, Mo Dec. 31,1921 C. P. J. Mooney Memphis, Tenn i Dec. 31,1922 DISTRICT NO. 8-LOUISVILLE BRANCH OF THE FEDERAL RESERVE BANK OF ST LOUIS. [W. P. Kincheloe, manager.] Geo. W. Norton Louisville, Ky Dec. 31,1920 W. C. Montgomery Elizabethtown, Ky. Do. W. P. Kincheloe Louisville, Ky Do. F. M. Sackett .do. Do. Embry L. Swearingen .do., Do. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

286 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. Officers and Directors of Federal Reserve Banks—Continued. DISTRICT NO. 8—MEMPHIS BRANCH OF THE FEDERAL RESERVE BANK OF ST. LOUIS [John J. Hefiin, manager.] Director. Residence. Term expires. R. Brinkley Snowden Memphis,Tenn Dec. 31,1920 John D McDowell do Do. JohnJ Heflin . . . . .. do Do. T K Riddick do Do. S E. Ragland .. do... Do. DISTRICT NO. 8—LITTLE ROCK BRANCH OF THE FEDERAL RESERVE BANK OF ST LOUIS. [A. F. Bailey, manager.] C. A. Pratt Little Rock, Ark. Dec. 31,1920 J. E. England, jr.. do Do. A. F. Bailey .do. Do. Moorhead Wright. .do. Do. G. W. Rogers .do. Do. DISTRICT NO. 9—FEDERAL RESERVE BANK OF MINNEAPOLIS. [John H. Rich, chairman and Federal Reserve agent; Win. H. Lightner, deputy chairman; R. A. Young, governor.] Class A: L. B. Hanna Fargo, N. Dak Dec.31.1920 W. C. McDowell Marion, N. Dak Dec.31.1921 Theodore Wold Minneapolis, Minn Dec.31.1922 Class B: N. B. Holter Helena, Mont Dec.31.1920 F. P. Hixon La Crosse, Wis Dec.31.1921 F. R. Bigelow St. Paul, Minn Dec.31,1922 Class C: John H. Rich Minneapolis, Minn.. Dec.31,1920 W. H. Lightner St. Paul, Minn Dec.31.1921 C. H. Benedict Lake Linden, Mich. Dec.31,1922 DISTRICT NO. 10—FEDERAL RESERVE BANK OF KANSAS CITY. Asa E. Ramsay, chairman and Federal Reserve agent; F. W. Fleming, deputy chairman; J. Z. Miller, jr., governor.) Class A: C. E. Burnham Norfolk, Nebr Dec. 31.1920 J.C.Mitchell Denver, Colo Dec. 31.1921 W. J. Bailey Atchison, Kans Dec. 31,1922 Class B: Harry W. Gibson Muskogee, Okla Dec. 31,1920 T. C. Byrne Omaha, Nebr Dec. 31.1921 M. L. McClure Kansas City, Mo Dec. 31,1922 Class C.- Asa E. Ramsay do. Dec. 31,1920 R. H. Malone Denver, Colo. Dec. 31,1921 F. W. Fleming Kansas City, Mo. Dec. 31.1922 DISTRICT NO. 10—DENVER BRANCH OF THE FEDERAL RESERVE BANK OF KANSAS CITY. [C. A. Burkhardt, manager.] C C Parks Denver Colo Dec. 31,1920 A C Foster ....do Do C A Burkhardt do Do. John Evans .. . do Do Alva Adams Pueblo Colo Do. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT N DIRECTORY. 287 Officers and Directors of Federal Reserve Banks—Continued. DISTRICT NO 10—OMAHA BRANCH OF THE FEDERAL RESERVE BANK OF KANSAS. CITY. [O. T. Eastman, manager.] Director. Residence. Term expires. Luther Drake Omaha, Nebr Dec. 31,1920 Oeoreje E. Abbott Cheyenne, Wyo Do. 0 IJ . L T , . H E a a l s l tman L O i m nc a o h l a n , , N N e e b b r r D Do o . . R 0 Marnell Nebraska City, Nebr Do. DISTRICT NO. 11—FEDERAL RESERVE BANK OF DALLAS. [W. F. Ramsey, chairman and Federal Reserve agent; W. B. Newsome, deputy chairman; R. L. Van Zandt, governor.] Class A: E. K. Smith Shreveport, La Dec. 31,1920 John T. Scott Houston, Tex Dec. 31,1921 B. A. McKinney Durant, Okla Dec. 31,1922 Class B: J J Culbertson Paris Tex Dec. 31,1920 Frank Kell Wichita Falls, Tex Dec. 31,1921 Marion Sansom Fort Worth, Tex Dec. 31,1922 Class C: W F Ramsey Dallas Tex Dec. 31,1920 W. B. Newsome . . .. do Dec. 31,1921 H. 0. Wooten Abilene, Tex Dec. 31,1922 DISTRICT NO. 11—EL PASO BRANCH OF THE FEDERAL RESERVE BANK OF DALLAS. [R. R. Gilbert, manager.] U. S. Stewart E1 Paso Tex - Dec. 31,1920 A. F. Kerr .do Do. R. R. Gilbert .... do Do. W. W. Turney do Do. A. P. Coles .... do Do. DISTRICT NO. 11—HOUSTON BRANCH OF THE FEDERAL RESERVE BANK OF DALLAS [Sam R. Lawder, manager.] Frank Andrews Houston, Tex Dec. 31,1920 Guy M. Bryan do Do. Sam R. Lawder do 1 Do. J. C.Chidsey do Do. J. J. Davis Galveston, Tex Do. DISTRICT NO. 12—FEDERAL RESERVE BANK OF SAN FRANCISCO. Jon n Perrin, chairman and Federal Reserve agent; Walton N. Moore, deputy chairman; John U. Calkins, governor.] Class A: J. E. Fishburn Los Angeles, Calif Dec. 31,1920 M. A. Buchan Palo Alto Calif Dec. 31 1921 C. K. Mclntosh San Francisco Calif Dec. 31,1922 Class B: A. B. C. Dohrmann .... do Dec. 31,1920 J. A. McGregor . do Dec. 31,1921 E.H. Cox .... do Dec. 31,1922 Class C: John Perrin ... do Dec. 31,1920 Walton N. Moore ... do Dec. 31,1921 Edward Elliott Berkelev, Calif Dec. 31,1922 DISTRICT NO. 12—PORTLAND BRANCH OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO. [C. L. Lamping, manager.] Edward Cookingham. Portland, Oreg.. Dec. 31,1920 J. C. Ainsworth .do... ... Do. C. L. Lamping .do. Do. Nathan Strauss .do. Do. Joseph N. Teal .do. Do. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

288 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Officers and Directors of Federal Reserve Banks—Continued. DISTRICT NO. 12—SEATTLE BRANCH OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO. [C. J. Shepherd, manager.] Director. Residence. I Term expires. M. F. Backus Seattle, Wash Dec. 31,1920 M. A. Arnold ' do Do. C. J. Shepherd ! do Do. C.H.Clarke do Do. Chas. E. Peabody do Do. DISTRICT NO. 12—SPOKANE BRANCH OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO. [Chas. A. McLean, manager.] D. W. Twohy Spokane, Wash. Dec. 31,1920 R. L. Rutter do Do. Chas. A. McLean. do Do. Peter McGregor... Hooper, Wash.. Do. G.I. Toevs Spokane, Wash. Do. DISTRICT NO. 12—SALT LAKE CITY BRANCH OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO. [Chas. H. Stewart, acting manager.] L. H. Farnsworth Salt Lake City, Utah. Dec. 31,1920 Chas. H. Stewart do Do. Chapin A. Day ! Ogden, Utah Do. G. G. Wright j Idaho Falls, Utah Do. Lafayette Hanchett I Salt Lake City, Utah. Do. DISTRICT NO. 12—LOS ANGELES BRANCH OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO.i [Ira Clerk, acting manager.] A. J. Waters Los Angeles, Calif Dec. 31,1920 J. F. Sartori do Do. Ira Clerk do Do. I. B. Newton do Do. Henry M. Robinson | Pasadena, Calif Do. i i Open for business Jan. 2,1920. Exhibit O.—FEDERAL ADVISORY COUNCIL. District No. 1.—Philip Stockton, president Old Colony Trust Co., Boston, Mass. District No. 2.—A. B. Hepburn, chairman advisory board, Chase National Bank, New York City. District No. 3.—L. L. Rue, president Philadelphia National Bank, Philadelphia, Pa. District No. 4.—W. S. Rowe, president First National Bank, Cincinnati, Ohio; director Federal Reserve Bank of Cleveland. District No. 5.—Joseph G. Brown, president City National Bank, Raleigh, N. C. District No. 6.—Oscar Wells, president First National Bank, Birmingham, Ala. District No. 7.—James B. Forgan, president First National Bank, Chicago, 111.; director Federal Reserve Bank of Chicago. District No. 8.—F. O. Watts, president Third National Bank, St. Louis, Mo.; director Federal Reserve Bank of St. Louis. District No. 9.—C. T. Jaffray, president First and Security National Bank, Minneapolis, Minn. District No. 10.—E. F. Swinney, president First National Bank, Kansas City, Mo. District No. 11.—R. L. Ball, chairman of board, National Bank of Commerce, San Antonio, Tex. Digitized for FRcAtS NERo. 12.—A. L. Mills, president First National Bank, Portland, Oreg. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT P—AMENDMENTS TO ACT. 289 Exhibit P.—AMENDMENTS TO THE FEDERAL RESERVE ACT AND REVISED STATUTES, [PUBLIC—No. 329—65TH CONGRESS.] [S. 5236.] AN ACT To amend sections seven, ten, and eleven of the Federal Reserve act, and section fifty-one hundred and seventy-two, Revised Statutes of the United States. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That that part of the first paragraph of section seven of the Federal Reserve act which reads as follows: ' 'After the aforesaid dividend claims have been fully met, all the net earnings shall be paid to the United States as a franchise tax except that one-half of such net earnings shall be paid into a surplus fund until it shall amount to forty per centum of the paid-in capital stock of such bank," be amended to read as follows: "After the aforesaid dividend claims have been fully met, the net earnings shall be paid to the United States as a franchise tax except that the whole of such net earnings, including those for the year ending December thirty-first, nineteen hundred and eighteen, shall be paid into a surplus fund until it shall amount to one hundred per • centum of the subscribed capital stock of such bank, and that thereafter ten per centum of such net earnings shall be paid into the surplus." SEC. 2. That that part of section ten of the Federal Reserve act which reads as follows: "The members of said board, the Secretary of the Treasury, the Assistant Secretaries of the Treasury, and the Comptroller of the Currency, shall be ineligible during the time they are in office and for two years thereafter to hold any office, position, or employment in any member bank," be amended to read as follows: "The Secretary of the Treasury and the Comptroller of the Currency shall be ineligible during the time they are in office and for two years thereafter to hold any office, position, or employment in any member bank. The appointive members of the Federal Reserve Board shall be ineligible during the time they are in office and for two years thereafter to hold any office, position, or employment in any member bank, except that this restriction shall not apply to a member who has served the full term for which he was appointed." SEC. 3. That section eleven of the Federal Reserve act as amended by the act of September iW^ifeh, nineteen hundred and sixteen, be further amended by striking out the whole* (rf'subsection (m) and by substituting therefor a subsection to read as follows: "(m) Upon the affirmative vote of not less than five of its members, the Federal Reserve Board shall have power to permit Federal Reserve Banks to discount for any member bank notes, drafts, or bills of exchange bearing the signature or endorsement of any one borrower in excess of the amount permitted by section nine and section thirteen of this act, but in no case to exceed twenty per centum of the member bank's capital and surplus: Provided, however, That all such notes, drafts, or bills of exchange discounted for any member bank in excess of the amount permitted under such sections shall be secured by not less than a like face amount of bonds or notes of the United States issued since April twenty-fourth, nineteen hundred and seventeen, or certificates of indebtedness of the United States: Provided further, That the provisions of this subsection (m) shall not be operative after December thirty-first, nineteen hundred and twenty." SEC. 4. That section fifty-one hundred and seventy-two, Revised Statutes of the United States, be amended to read as follows: "SEC. 5172. That in order to furnish suitable notes for circulation, the Comptroller of the Currency shall, under the direction of the Secretary of the Treasury, cause plates and dies to be engraved, in the best manner to guard against counterfeiting and fraudulent alterations, and shall have printed therefrom and numbered such quantity of circulating notes in blank, or bearing engraved signatures of officers as herein provided, of the denominations of $1, $2, $5, $10, $20, $50, $100, $500, and $1,000, as may be required to supply the associations entitled to receive the same. Such notes shall express upon their face that they are secured by United States bonds deposited with the Treasurer of the United States, by the written or engraved signatures of the Treasurer and Register, and by the imprint of the seal of the Treasury; and shall also express upon their face the promise of the association receiving the same to pay on demand, attested by the written or engraved signatures of the president or vice president and cashier; and shall bear such devices and such other statements and shall be in such form as the Secretary of the Treasury shall, by regulation, direct." Approved, March 3, 1919. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

290 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. [PUBLIC—No. 48—66TH CONGRESS.] IS. 2395.] AN ACT Amending section 25 of the Act approved December 23, 1913, known as the Federal Reserve act, as amended by the act approved September 7, 1916. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 25 of the act approved December 23, 1913, known as the Federal Reserve act, as amended by the act approved September 7, 1916, be further amended by the addition of the following paragraph at the end of subparagraph 2 of the first paragraph, after the word "possessions ": "Until January 1, 1921, any national banking association, without regard to the amount of its capital and surplus, may file application with the Federal Reserve Board for permission, upon such conditions and under such regulations as may be prescribed by said board, to invest an amount not exceeding in the aggregate 5 per centum of its paid-in capital and surplus in the stock of one or more corporations chartered or incorporated under the laws of the United States or of any State thereof, and, regardless of its location, principally engaged in such phases of international or foreign financial operations as may be necessary to facilitate the export of goods, wares, or merchandise from the United States or any of its dependencies or insular possessions to any foreign country: Provided, hoivever, That in no event shall the total investments authorized by this section by any one national bank exceed 10 per centum of its capital and surplus." SEC. 2. That paragraph 2 of said section be amended by adding after the word "banking," in line three, the words "or financial," so that the sentence will read: "Such application shall specify the name and capital of the banking association filing it, the powers applied for, and the place or places where the banking or financial operations proposed are to be carried on." SEC. 3. That paragraph 3 of said section be amended by striking put the words "subparagraph 2 of the first paragraph of this section" and inserting in lieu thereof the word "above," so that the paragraph will read: "Every national banking association operating foreign branches shall be required to furnish information concerning the condition of such branches to the Comptroller of the Currency upon demand, and every member bank investing in the capital stock of banks or corporations described above shall be required to furnish information concerning the condition of such banks or corporations to the^e$£ral Reserve t Board upon demand, and the Federal Reserve Board may order special examinations of the said branches, banks, or corporations at such time or times as it may deem best." Approved, September 17, 1919. [PUBLIC—No. 106—66TH CONGRESS.] [S. 2472.] AN ACT To amend the act approved December 23, 1913, known as the Federal Reserve act. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the act approved December 23., 1913, known as the Federal Reserve act, as amended, be further amended by adding a new section as follows: "BANKING CORPORATIONS AUTHORIZED TO DO FOREIGN BANKING BUSINESS. "SEC. 25 (a). Corporations to be organized for the purpose of engaging in international or foreign banking or other international or foreign financial operations, or in banking or other financial operations in a dependency or insular possession of the United States, either directly or through the agency, ownership, or control of local institutions in foreign countries, or in such dependencies or insular possessions as provided by this section, and to act when required by the Secretary of the Treasury as fiscal agents of the United States, may be formed by any number of natural persons, not less in any case than five. *' Such persons shall enter into articles of association which shall specify in general terms the objects for which the association is formed and may contain any other provisions not inconsistent with law which the association may see fit to adopt for the regulation of its business and the conduct of its affairs. '' Such articles of association shall be signed by all of the persons intending to paricipate in the organization of the corporation and, thereafter, shall be forwarded to the Federal Reserve Board and shall be filed and preserved in its office. The person Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT P—AMENDMENTS TO ACT. 291 signing the said articles of association shall, under their hands, make an organization certificate which shall specifically state: "First. The name assumed by such corporation, which shall be subject to the approval of the Federal Reserve Board. Second. The place or places where its operations are to be carried on. "Third. The place in the United States where its home office is to be located. "Fourth. The amount of its capital stock and the number of shares into which the same shall be divided. "Fifth. The names and places of business or residence of the persons executing the certificate and the number of shares to which each has subscribed. "Sixth. The fact that the certificate is made to enable the persons subscribing the same, and all other persons, firms, companies, and corporations, who or which may thereafter subscribe to or purchase shares of the capital stock of such corporation, to avail themselves of the advantages of this section. "The persons signing the organization certificate shall duly acknowledge the execution thereof before a judge of some court of record or notary public, who shall certify thereto under the seal of such court or notary, and thereafter the certificate shall be forwarded to the Federal Reserve Board to be filed and preserved in its office. Upon duly making and filing articles of association and an organization certificate, and after the Federal Reserve Board has approved the same and issued a permit to begin business, the association shall become and be a body corporate, and as such and in the name designated therein shall have power to adopt and use a corporate seal, which may be changed at the pleasure of its board of directors; to have succession for a period of twenty years unless sooner dissolved by the act of the shareholders owning two-thirds of the stock or by an act of Congress or unless its franchises become forfeited by some violation of law; to make contracts; to sue and be sued, complain, and defend in any court of law or equity; to elect or appoint directors, all of whom shall be citizens of the United States; and, by its board of directors, to appoint such officers and employees as may be deemed proper, define their authority and duties, require bonds of them, and fix the penalty thereof, dismiss such officers or employees, or any thereof, at pleasure and appoint others to fill their places; to prescribe, by its board of directors, by-laws not inconsistent with law or with the regulations of the Federal Reserve Board regulating the manner in which its stock shall be transferred, its directors elected or appointed, its officers and employees appointed, its property transferred, and the privileges granted to it by law exercised and enjoyed. "Each corporation so organized shall have power, under such rules and regulations as the Federal Reserve Board may prescribe: "(a) To purchase, sell, discount, and negotiate, with or without its indorsement or guaranty, notes, drafts, checks, bills of exchange, acceptances, including bankers' acceptances, cable transfers, and other evidences of indebtedness: to purchase and sell, with or without its indorsement or guaranty, securities, including the obligations of the United States or of any State thereof but not including shares of stock in any corporation except as herein provided; to accept bills or drafts drawn upon it subject to such limitations and restrictions as the Federal Reserve Board may impose; to issue letters of credit; to purchase and sell coin, bullion, and exchange; to borrow and to lend money; to issue debentures, bonds, and promissory notes under such general conditions as to security and such limitations as the Federal Reserve Board may prescribe, but in no event having liabilities outstanding thereon at any one time exceeding ten times its capital stock and surplus; to receive deposits outside of the United States and to receive only such deposits within the United States as may be incidental to or for the purpose of carrying out transactions in foreign countries or dependencies or insular possessions of the United States; and generally to exercise such powers as are incidental to the powers conferred by this act or as may be usual, in the determination of the Federal Reserve Board, in connection with the transaction of the business of banking or other financial operations in the countries, colonies, dependencies, or possessions in which it shall transact business and not inconsistent with the powers specifically granted herein. Nothing contained in this section shall be construed to prohibit the Federal Reserve Board, under its power to prescribe rules and regulations, from limiting the aggregate amount of liabilities of any or all classes incurred by the corporation and outstanding at any one time. Whenever a corporation organized under this section receives deposits in the United States authorized by this section it shall carry reserves in such amounts as the Federal Reserve Board may prescribe, but in no event less than 10 per centum of its deposits. " (b) To establish and maintain for the transaction of its business branches or agencies in foreign countries, their dependencies or colonies, and in the dependencies or insular possessions of the United States, at such places as may be approved by the Federal Reserve Board and under such rules and regulations as it may prescribe, including countries or dependencies not specified in the original organization certificate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

292 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. "(c) With the consent of the Federal Reserve Board to purchase and hold stock or other certificates of ownership in any other corporation organized under the provisions of this section, or under the laws of any foreign country or a colony or dependency thereof, or under the laws of any State, dependency, or insular possession of the United States but not engaged in the general business of buying or selling goods, wares, merchandise or commodities in the United States, and not transacting any business in the United States except such as in the judgment of the Federal Reserve Board may be incidental to its international or foreign business: Provided,, however, That, except with the approval of the Federal Reserve Board, no corporation organized hereunder shall invest in any one corporation an amount in excess of 10 per centum of its own capital and surplus, except in a corporation engaged in the business of banking, when 15 per centum of its capital and surplus may be so invested: Provided further, That no corporation organized hereunder shall purchase, own, or hold stock or certificates of ownership in any other corporation organized hereunder or under the laws of any State which is in substantial competition therewith, or which holds stock *or certificates of ownership in corporations which are in substantial competition with the purchasing corporation. " Nothing contained herein shall prevent corporations organized hereunder from purchasing and holding stock in any corporation where such purchase shall be necessary to prevent a loss upon a debt previously contracted in good faith; and stock so purchased or acquired in corporations organized under this section shall within six months from such purchase be sold or disposed of at public or private sale unless the time to so dispose of same is extended by the Federal Reserve Board. "No corporation organized under this section shall carry on any part of its business in the United States except such as, in the judgment of the Federal Reserve Board, shall be incidental to its international or foreign business: And provided further, That except such as is incidental and preliminary to its organization no such corporation shall exercise any of the powers conferred by this section until it has been duly authorized by the Federal Reserve Board to commence business as a corporation organized under the provisions of this section. "No corporation organized under this section shall engage in commerce or trade in commodities except as specifically provided in this section, nor shall it either directly or indirectly control or fix or attempt to control or fix the price of any such commodities. The charter of any corporation violating this provision shall be subject to forfeiture in the manner hereinafter provided in this section. It shall be unlawful for any director, officer, agent, or employee of any such corporation to use or to conspire to use the credit, the funds, or the power of the corporation to fix or control the price of any such commodities, and any such person violating this provision shall be liable to a fine of not less than $1,000 and not exceeding $5,000 or imprisonment not less than one year and not exceeding five years, or both, in the discretion of the court. "No corporation shall be organized under the provisions of this section with a capital stock of less than $2,000,000, one-quarter of which must be paid in before the corporation may be authorized to begin business, and the remainder of the capital stock of such corporation shall be paid in installments of at least 10 per centum on the whole amount to which the corporation shall be limited as frequently as one installment at the end of each succeeding two months from the time of the commencement of its business operations until the whole of the capital stock shall be paid in. The capital stock of any such corporation may be increased at any time, with the approval of the Federal Reserve Board, by a vote of two-thirds of its shareholders or by unanimous consent in writing of the shareholders without a meeting and without a formal vote, but any such increase of capital shall be fully paid in within ninety days after such approval; and may be reduced in like manner, provided that in no event shall it be less than $2,000,000. No corporation, except as herein provided, shall during the time it shall continue its operations withdraw or permit to be withdrawn, either in the form of dividends or otherwise, any portion of its capital. Any national banking association may invest in the stock of any corporation organized under 'the provisions of this section, but the aggregate amount of stock held in all corporations engaged in business of the kind described in this section and in section 25 of the Federal Reserve act as amended shall not exceed 10 per centum of the subscribing bank's capital and surplus. "A majority of the shares of the capital stock of any such corporation shall at all times be held and owned by citizens of the United States, by corporations the controlling interest in which is owned by citizens of the United States, chartered under the laws of the United States or of a State of the United States, or by firms or companies, the controlling interest in which is owned by citizens of the United States. The provisions of section 8 of the act approved October 15,1914, entitled 'An act to supplement existing laws against unlawful restraints and monopolies, and for other purposes/ as^amended by the acts of May 15, 1916, and September 7, 1916, shall be construed to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT P—AMENDMENTS TO ACT. 293 apply to the directors, other officers, agents, or employees of corporations organized under the provisions of this section: Provided, however, That nothing herein contained shall (1) prohibit any director or other officer, agent or employee of any member bank, who has procured the approval of the Federal Reserve Board from serving at the same time as a director or other officer, agent or employee of any corporation organized under the provisions of this section in whose capital stock such member bank shall have invested; or (2) prohibit any director or other officer, agent, or employee of any corporation organized under the provisions of this section, who has procured the approval of the Federal Reserve Board, from serving at the same time as a director or other officer, agent or employee of any other corporation in whose capital stock such first-mentioned corporation shall have invested under the provisions of this section. "No member of the Federal Reserve Board shall be an officer or director of any corporation organized under the provisions of this section, or of any corporation engaged in similar business organized under the laws oi any State, nor hold stock in any such corporation, and before entering upon his duties as a member of the Federal Reserve Board he shall certify under oath to the Secretary of the Treasury that he has complied with this requirement. '' Shareholders in any corporation organized under the provisions of this section shall be liable for the amount of their unpaid stock subscriptions. No such corporation shall become a member of any Federal reserve bank. "Should any corporation organized here under violate or fail to comply with any of the provisions of this section, all of its rights, privileges, and franchises derived herefrom may thereby be forfeited. Before any such corporation shall be declared dissolved, or its rights, privileges, and franchises forfeited, any noncompliance with, or violation of such laws shall, however, be determined and adjudged by a court of the United States of competent jurisdiction, in a suit brought for that purpose in the district or territory in which the home office of such corporation is located, which suit shall be brought by the United States at the instance of the Federal Reserve Board or the Attorney General. Upon adjudication of such noncompliance or violation, each director and officer who participated in, or assented to, the illegal act or acts, shall be liable in his personal or individual capacity for all damages which the said corporation shall have sustained in consequence thereof. No dissolution shall take away or impair any remedy against the corporation, its stockholders, or officers for any liability or penalty previously incurred. "Any such corporation may go into voluntary liquidation and be closed by a vote of its shareholders owning two-thirds of its stock. "Whenever the Federal Reserve Board shall become satisfied of the insolvency of any such corporation, it may appoint a receiver who shall take possession of all of the property and assets of the corporation and exercise the same rights, privileges, powers, and authority with respect thereto as are now exercised by receivers of national banks appointed by the Comptroller of the Currency of the United States: Provided, hoivever, That the assets of the corporation subject to the laws of other countries or jurisdictions shall be dealt with in accordance with the terms of such laws. "Every corporation organized under the provisions of this section shall hold a meeting of its stockholders annually upon a date fixed in its by-laws, such meeting to be held at its home office in the United States. Every such corporation shall keep at Us home office books containing the names of all stockholders thereof, and the names nd addresses ot the members of its board of directors, together with copies of all reports made by it to the Federal Reserve Board. Every such corporation shall make reports to the Federal Reserve Board at such times and in such form as it may require; and shall be subject to examination once a year and at such other times as may be deemed necessary by the Federal Reserve Board by examiners appointed by the Federal Reserve Board, the cost of such examinations, including the compensation of the examiners, to be fixed by the Federal Reserve Board and to be paid by the corporation examined, '' The directors of any corporation organized under the provisions of this section may, semiannually, declare a dividend of so much of the net profits of the corporation as they shall judge expedient; but each corporation shall, before the declaration of a dividend, carry one-tenth of its net profits of the preceding half year to its surplus fund until the same shall amount to 20 per centum of its capital stock. "Any corporation organized under the provisions of this section shall be subject to tax by the State within which its home office is located in the same manner and to the same extent as other corporations organized under the laws of that State which are transacting a similar character of business. The shares of stock in such corporation shall also be subject to tax as the personal property of the owners or holders thereof in the same manner and to the same extent as the shares of stock in similar State corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

294 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. "Any corporation organized under the provisions of this section may at any time within the two years next previous to the date of the expiration of its corporate existence, by a vote of the shareholders owning two-thirds of its stock, apply to the Federal Reserve Board for its approval to extend the period of its corporate existence for a term of not more than twenty years, and upon certified approval of the Federal Reserve Board such corporation shall have its corporate existence for such extended period unless sooner dissolved by the act of the shareholders owning two-thirds of its stock, or by an Act of Congress or unless its franchise becomes forfeited by some violation of law. "Any bank or banking institution, principally engaged in foreign business, incorporated by special law of any State or of the United States or organized under the general laws of any State or of the United States and having an unimpaired capital sufficient to entitle it to become a corporation under the provisions of this section may, by the vote of the shareholders owning not less than two-thirds of the capital stock of such bank or banking association, with the approval of the Federal Reserve Board, be converted into a Federal corporation of the kind authorized by this section with any name approved by the Federal Reserve Board: Provided, however, That said conversion shall not be in contravention of the State law. In such case the articles of association and organization certificate may be executed by a majority of the directors of the bank or banking institution, and the certificate shall declare that the owners of at least two-thirds of the capital stock have authorized the directors to make such certificate and to change or convert the bank or banking institution into a Federal corporation. A majority of the directors, after executing the articles of association and the organization certificate, shall have power to execute all other papers and to do Whatever may be required to make its organization perfect and complete as a Federal corporation. The shares of any such corporation may continue to be for the same amount each as they were before the conversion, and the directors may continue to be directors of the corporation until others are elected or appointed in accordance with the provisions of this section. When the Federal Reserve Board has given to such corporation a certificate that the provisions of this section have been complied with, such corporation and all its stockholders, officers, and employees, shall have the same powers and privileges, and shall be subject to the same duties, liabilities, and regulations, in all respects, as shall have been prescribed by this section for corporations originally organized hereunder. "Every officer, director, clerk, employee, or agent of any corporation organized under this section who embezzles, abstracts, or willfully misapplies any of the moneys, funds, credits, securities, evidences of indebtedness or assets of any character of such corporation; or who, without authority from the directors, issues or puts forth any certificate of deposit, draws any order or bill of exchange, makes any acceptance, assigns any note, bond, debenture, draft, bill of exchange, mortgage, judgment, or decree; or who makes any false entry in any book, report, or statement of such corpo1ration with intent, in either case, to injure or defraud such corporation or any other company, body politic or corporate, or any individual person, or to deceive any officer of such corporation, the Federal Reserve Board, or any agent or examiner appointed to examine the affairs of any such corporation; and every receiver of any such corporation and every clerk or employee of such receiver who shall embezzle, abstract, or willfully misapply or wrongfully convert to his own use any moneys, funds, credits, or assets of any character which may come into his possession or under his control in the execution of his trust or the performance of the duties of his employment; and every such receiver or clerk or employee of such receiver who shall, with intent to injure or defraud any person, body politic or corporate, or to deceive or mislead the Federal Reserve Board, or any agent or examiner appointed to examine the affairs of such receiver, shall make any false entry in any book, report, or record of any matter connected with the duties of such receiver; and every person who with like intent aids or abets any officer, director, clerk, employee, or agent of any corporation organized under this section, or receiver or clerk or employee of such receiver as aforesaid in any violation of this section, shall upon conviction thereof be imprisoned for not less than two years nor more than ten years, and may also be fined not more than $5,000, in the discretion of the court. "Whoever being connected in any capacity with any corporation organized under this section represents in any way that the United States is liable for the payment of any bond or other obligation, or the interest thereon, issued or incurred by any corporation organized hereunder, or that the United States incurs any liability in respect of any act or omission of the corporation, shall be punished by a fine or not more than $10,000 and by imprisonment for not more than five years." Approved, December 24, 1919. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT P AMENDMENTS TO ACT. 295 [PUBLIC—No. 62-—66TH CONGRESS.] [H. R. 7478.] AN ACT To amend sections 5200 and 5202 of the Revised Statutes of the United States as amended by acts of June 22, 1906, and September 24, 1918. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 5200 of the Revised Statutes of the United States as amended by the acts of June 22, 1906, and September 24, 1918, be further amended to read as follows: "SEC. 5200. The total liabilities to any association of any person or of any company, corporation, or firm for money borrowed, including in the liabilities of a company or firm the liabilities of the several members thereof, shall at no time exceed 10 per centum of the amount of the capital stock of such association, actually paid in and unimpaired, and 10 per centum of its unimpaired surplus fund: Provided, however, That (1) the discount of bills of exchange drawn in good faith against actually existing values, including drafts and bills of exchange secured by shipping documents conveying or securing title to goods shipped, and including demand obligations when secured by documents covering commodities in actual process of shipment, and also including bankers' acceptances of the kinds described in section 13 of the Federal Reserve act, (2) the discount of commercial or business paper actually owned by the person, company, corporation, or firm negotiating the same, (3) the discount of notes secured by shipping documents, warehouse receipts, or other such documents conveying or securing title covering readily marketable nonperishable staples, including live stock, when the actual market value of the property securing the obligation is not at any time less than 115 per centum of the face amount of the notes secured by such documents and when such property is fully covered by insurance, and (4) the discount of any note or notes secured by not less than a like face amount of bonds or notes of the United States issued since April 24, 1917, or certificates of indebtedness of the United States, shall not be considered as money borrowed within the meaning of this section. The total liabilities to any association, of any person or of any corporation, or firm, or company, or the several members thereof upon any note or notes purchased or discounted by such association and secured by bonds, notes, or certificates of indebtedness as described in (4) hereof shall not exceed (except to the extent permitted by rules and regulations prescribed by the Comptroller of the Currency, with the approval of the Secretary of the Treasury) 10 per centum of such capital stock and surplus fund of such association and the total liabilities to any association of any person or of any corporation, or firm, or company, or the several members thereof for money borrowed, including the liabilities upon notes secured in the manner described under (3) hereof, except transactions (1), (2), and (4), shall not at any time exceed 25 per centum of the amount of the association's paid-in and unimpaired capital stock and surplus. The exception made under (3) hereof shall not apply to the notes of any one person, corporation or firm or company, or the several members thereof for more than six months in any consecutive twelve months." SEC. 2. That section 5202 of the Revised Statutes of the United States as amended by section 20, Title I, of the act approved April 5, 1918, be further amended so as to read as follows: "SEC. 5202. No national banking association shall at any time be indebted, or in any way liable, to an amount exceeding the amount of its capital stock at such time actually paid in and remaining undiminished by losses or otherwise, except on account of demands of the nature following: "First. Notes of circulation. "Second. Moneys deposited with or collected by the association. "Third. Bills of exchange or drafts drawn against money actually on deposit to the credit of the association, or due thereto. "Fourth. Liabilities to the stockholders of the association for dividends and reserve profits. "Fifth. Liabilities incurred under the provisions of the Federal Reserve act. "Sixth. Liabilities incurred under the provisions of the War Finance Corporation act. "Seventh. Liabilities created by the indorsement of accepted bills of exchange payable abroad actually owned by the indorsing bank and discounted at home or abroad." Approved, October 22, 1919. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PART II. REPORTS OF FEDERAL RESERVE AGENTS TO FEDERAL RESERVE BOARD. 297 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1.—BOSTON. FREDERIC H. CURTISS, Chairman and Federal Reserve Agent. INTRODUCTION. Active hostilities with the Central Powers of Europe ceased with the signing of the armistice on November 11, 1918, but the aftereffects of the great World War dominated finance and industry in this Federal Reserve district during the entire year of 1919. Well into the new year the industries of New England were occupied on Government orders and the settlement and adjustment of Government contracts, but gradually, as spring approached, industries were able to readjust themselves from a war to a peace basis, domestic demands bringing increasing business, so that throughout the year almost all industries were running at top notch, which, with increasing costs in labor and raw material, called for unusually heavy credit expansion. This demand for credit was reflected in the loans of the Federal Reserve Bank of Boston. During the year there was but one public offering of long-term securities that of the fifth or Victory loan in April, 1919, but short- 7 time borrowings of the Treasury Department on loan and tax certificates of indebtedness were continuous throughout the year, and these short-time borrowings, together with the new income and excess-profits taxes, placed a continuous and insistent demand upon the banks of the district which, with the increased commercial demands, made recourse to the Federal Reserve Bank heavier than in any previous year. In order, therefore, to maintain reserves above the legal limit this bank was obliged frequently to rediscount with other Federal Reserve Banks of the system; on the other hand, this bank did not rediscount for any other Federal Reserve Bank during the entire year. REVIEW OF INDUSTRIAL CONDITIONS DURING 1919. The year opened with retail trade extremely good, stimulated by patronage of wage earners who had shown no disposition to curtail their expenditures and whose purchases included many luxuries—a condition which offered opportunity for retailers to dispose of stocks at prevalent high prices: but in view of uncertainty concerning the future dealers were generally cautious in placing orders and replenishing depleted inventories. By another month, however, there was evidently throughout the entire district less apprehension regarding future conditions, confidence was beginning to return, and there was more general inclination to enter into future commitments; by April the turn in tke tide was increasingly evident each week, and the impression was becoming general that no lower commodity price level was likely to be established for some time to come. Buyers were encouraged to place 178983—20 20 299 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

300 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. orders with more confidence and manufacturers went ahead with less hesitation. The summer found manufacturers and merchants in practically all lines doing a large business, and buyers who had withheld orders awaiting lower prices were now purchasing heavily in anticipation of costs advancing still further; moreover, the removal of numerous Government restrictions had gone far toward substantiating the belief that the price level would be no lower until production was sufficient to fill the vacuum in inventories created during the war. The general business situation was, nevertheless, unsettled, for, in spite of boundless activity and surface prosperity, the industrial unrest by the late summer overshadowed all other factors. The constant threat of strikes, and the interference with transportatioi facilities, traction and railroad, had begun to be a burden on all lines~* of industry, causing a general slowing down, which, however, was traceable more to apprehension on the part of the manufacturers than to any direct slackening of demand for goods. The year ended with general business conditions in the New England district reflecting unprecedented prosperity as defined in terms of high wages and purchasing power, high prices, orders booked by manufacturers in some cases far into 1920, projected plans for expansion of plants and equipment which in some cases are already taking the form of actual building construction, and the absence of serious or widespread dislocation of working relationship between employer and employee in any of the great basic industries. Practically the only exception to this general condition of business activity is in the field of dwelling-house construction, which has shown no broad recovery from the stagnation of the war period. Commercial failures have been less in number and less in volume of liabilities than in the two previous years. Bank clearings in the larger cities emphasize the increasing business activity of the year. The business through the port of Boston shows some change, although it must be borne in mind that Boston is one of the terminals for the entire country. BALANCE SHEET. The comparative statement of the condition of the bank on December 31 for the years 1917, 1918, and 1919, as shown in Exhibit C, demonstrates the large increase in the operations of the bank. Total resources amounting to 521 million, it will be noted, are over twice those of 1917, not including the increase in rediscounts with other Federal Reserve Banks. FINANCIAL RESULTS OF OPERATION. While the heavy increase in bills discounted for member banks and the high discount rates maintained during the year have brought increased earnings to the bank, the increase on the other hand in service furnished to member banks, more particularly in connection with currency transactions and the handling of checks and other items, has entailed heavy increases in expense. Dividends at the rate of 6 per cent per annum were paid on the stock holdings of member banks on June 30 and December 31 and $5,362,934.40 was added to the surplus fund, making the total surplus fund $8,359,034.40, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1—BOSTON. 301 or 59 per cent of the subscribed capital of the bank. Under the amendment to the Federal Reserve Act of March 3, 1919, Federal Reserve Banks may accumulate a surplus fund equal to their subscribed capital, and thereafter 10 per cent of net earnings. The success of a Federal Reserve Bank should not be measured, however, by its earning capacity, but by the assistance it furnishes to the commercial and agricultural interests of the community it serves. DISCOUNT RATES. As in the immediate war period, the policy of rates of discount during the year 1919 has been dominated by the necessities of the Treasury Department. Changes in rates were slight during the year. The preferential rate of 4 per cent on loans secured by and carrying the coupon rate of the fourth Liberty loan bonds was withdrawn February 15. The rate in connection with loans secured by the bonds of the War Finance Corporation, automatically, in accordance with the provision of that act, went into effect April 12, with the first offering of the bonds of that corporation, a rate so high that it was used but to a very small extent. There were no further changes in discount rates, even in connection with the flotation of the fifth or Victory Liberty loan, until November 4, when the preferential rates on maturities of 15 days or less were discontinued and rates on loans secured by long-term Government obligations slightly increased, the rates on loans secured by tax and loan certificates of indebtedness being continued in order to assist in placing the issues of those securities which the Treasury Department was offering from time to time. On December 12 the rates on all classes of paper, including trade acceptances and loans against United States Government longterm securities, were raised to the commercial rate of 4f per cent, the rates being still continued on loans secured by certificates of indebtedness at the interest rate which such securities bore—4J to 4J per cent. The gradual raising of rates on loans secured by longterm Government securities has had some effect in keeping the volume of that class of loans out of the banks, for in the latter months of the year when the discounts of the bank increased heavily the increase was" almost entirely in commercial paper. LOAN AND DISCOUNT OPERATIONS. The year 1918 ended with the loans of this bank at nearly their maximum, a point which proved to be almost the low point of the year 1919. The high state of industrial activity during the war and the character of the subscriptions to the fourth Liberty loan which had been placed under a ''borrow to buy" policy were the principal causes for the year opening with loans high and with reserves low. While in 1918 there had been an improvement in general conditions, final payments on Liberty loan bonds and further issues of certificates of indebtedness, together with the slow adjustment of payments on account of Government contracts, soon brought loans to a new high mark. The loans continued at a high level until the middle of July. As payments began to come in on the Victory Liberty Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

302 ANHTJAL REPORT OF THE FEDERAL RESERVE BOARD. loan, the first of which on June 3 brought in $116,000,000, it became evident that this loan had been placed more largely in the hands of investors than previous loans and had not been subscribed to so large an extent on borrowed money, as partial-payment plans had been encouraged. Financing by means of certificates of indebtedness made it possible for banks to meet their payments without recourse to this bank for any considerable amount of new loans. Even the heavy tax payment of $140,000,000 in June was met easily and not reflected in the loans, as redemption of certificates of indebtedness provided much of the necessary money. Ordinarily, the demands of the mills for money with which to purchase raw materials appears in the late summer or early fall. This year price uncertainty delayed the demand two or three months. The same held true in the case of other seasonal demands. In August, as all indications were that this demand would hold off, and as reserves were at the high point of the year, being 55.6 per cent on August 15, this bank became a free buyer of acceptances. This policy was continued until early in November when, although still in the market, acceptance rates were raised above the discount rate. By November a marked change had occurred in the demands made upon banks. The ever-increasing price level, the financing of local taxes, the heavy purchases of raw material, the final payments on subscriptions to Victory notes, high stock exchange call rates in New York, rates which attracted the balances the country banks had been carrying on deposit with their Boston correspondents—all together greatty augmented the demands made on this bank and necessitated heavy rediscounting with other Federal Reserve Banks. From then on to the end of the year an increasing demand on the part of commercial borrowers caused a marked change in the character of the loans. Commercial paper discounted, which had averaged under $10,000,000 up to November 1, rose to $63,000,000 by the end of the year, an increase caused in part by the changes in discount rates on November 4 and December 12, which tended to eliminate the preferential rate that had led commercial borrowers to use United States obligations rather than their unsecured notes when seeking accommodation. Early in December payment of $30,000,000 in this district on the part of the United States Railroad Administration to the Boston & Maine Railroad brought an easing of conditions which, however, lasted but a few days, the money being rapidly distributed to other districts. From then on commercial demands and Government financing necessitated further rediscounts with other Federal Reserve Banks. The December 15 tax payment in this district was directly felt in the loans of this bank, which at the close of the year rose to $289,000,000, including rediscounts, or almost $85,000,000 higher than the previous year. This rise occurred notwithstanding the fact that constant pressure had been brought to bear on individual banks that were rediscounting undue amounts either for carrying Liberty loan bonds for customers, or for purchasing paper in the open market. As in previous years borrowings were made by banks largely on short maturities, thus keeping the bank's investments in a satisfactory liquid state. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1 BOSTON. 303 TRADE ACCEPTANCES. Although the larger city banks are still disinclined to encourage borrowing for commercial purposes through the use of trade acceptances, preferring the single name note, there has been a strong tendency on the part of note brokers and merchants to increase the volume of this class of commercial obligation. While in some cases the firms using trade acceptances have not been those enjoying the highest credit, still merchants have found that they could get increased credit from their banks through the use of paper of this character, and that brokers were inclined to favor it. During the past year a number of corporations have been organized, in some cases under the general corporation laws of the State and in others under the State banking laws, corporations whose principal operations are confined to the financing of automobiles, both m connection with sales to dealers and to individual purchasers. The relation of these corporations to member banks, to the Federal Reserve System, and the character of the obligations which they handle as they pertain to the development of the general acceptance business should/ be given careful consideration. For a short time the Federal Reserve Bank purchased in the open market trade acceptances indorsed by member banks. Foreign-trade acceptances have also made their appearance in this market to a marked degree, and have been carried by the large city banks in their portfolios. These have been purchased at somewhat higher rates by the bank under open market operation, but only when indorsed by member banks. Inasmuch as it has been deemed desirable to increase rates whenever possible and to bring about a closer uniformity of discount rates on all classes of paper, the preferential rate for trade acceptances was withdrawn on December 12. BANKERS7 ACCEPTANCES. Increased demand for credits has produced a marked increase in the volume of bankers' acceptances created in this Federal Reserve district, and every encouragement has been given to the brokerage houses and discount companies to handle and distribute bankers' acceptances. This has led to considerable carrying of acceptances by this bank on repurchase agreements, only acceptances being taken, however, that this bank would purchase and these at rates slightly above the open market. Several of the large city banks have followed the same practice. There has been evidenced as a result of this encouragement a wider distribution of these acceptances among commercial and savings banks during the past year than ever before. With the Treasury out of the market for short borrowings, the banks in this district will be in a position to carry large portfolios of bills as secondary reserve. During the entire year the Federal Reserve Bank has maintained an open-market policy in connection with the purchase of these acceptances. Banks have preferred to sell their acceptances to the Federal Reserve Bank even at rates considerably higher than the current discount rates rather than offer their holdings for rediscount. As referred to elsewhere, during the months of August, September, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

304 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. October, and early November the Federal Eeserve Bank was offered large amounts of bankers' acceptances from the portfolios of member banks due to the increasing commercial demand made by their customers. The general policy of having differential rates with reference to the character or maturity of acceptances has been maintained, but purchases of bills have been confined to those either accepted by or indorsed by member banks. The total amount of holdings of acceptances on the part of member banks was $109,000,000 on November 17. This bank has maintained the policy of requiring the indorsement of all acceptances rediscoanted with or for other Federal Reserve Banks. During the year seven member banks have beetfi given the special privilege by the Federal Reserve Board to accept up to 100 per cent of their combined capital and surplus, while several banks have entered the acceptance field for the first time. A policy has finally been adopted whereby bankers' acceptances payable in Federal Reserve Bank cities become reserve funds to the holding bank on the date of payment, settlement being consummated through the gold settlement fund in Washington. This arrangement has greatly aided the distribution of these bills among the various districts. UNITED STATES SECURITIES. The principal changes in the amount of United States securities held by this bank have been in connection with certificates of indebtedness issued under the Pittman Act, which provides for their use as security for Federal Reserve bank notes which have been issued to take the place of silver certificates. January 1, $666,000 of these were purchased to replace a like amount of United States 1-year 3 per cent notes which matured on that day and had been used as security for Federal Reserve bank notes. In addition to these $14,020,000 certificates of indebtedness were purchased to be used as security for additional Federal Reserve bank notes. Anticipating receipt of funds on a few occasions the Treasury Department sold to the Federal Reserve Bank special certificates of indebtedness maturing in one or two days and carrying 2 per cent interest. The funds so obtained were used to meet its current obligations. The largest amount of these certificates held at one time was $30,000,000 on September 15 and the total amounted to $36,000,000. CREDIT DEPARTMENT AND BANK EXAMINATIONS. The expansion of the general credit situation has called for a more careful scrutinizing of credits than ever before. Investigations have been made both of notes offered for discount by member banks and of notes and securities carried in the loans. In the past credit analysis has been conducted in connection with the examining department, but this work has now increased to such a point that after the first of the year it is planned to organize a separate credit department which will be under the immediate supervision of Frank S. Hughes, who, for many years, has been associated with R. G. Dun & Co. The scope of the department will be considerably extended, as it is proposed to follow more closely the different lines of commercial activity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1—BOSTON. 305 in New England in order that the Federal Reserve Bank may be kept in closer touch with the credit situation and the needs of the industrial, commercial, and agricultural communities in this district. The work of the examining department has been largely increased during the past year in connection with both State member banks and national banks. It has been found desirable in the case of State banks to pursue the policy of making independent examinations not only at the time that they apply for admission but subsequently. This policy has been adopted not through any lack of cooperation on the part of the various State banking departments or through lack of confidence in their examinations, but rather in order to bring about a uniformity of detail in the information obtained and greater regularity of making, examinations. During the past year every State member bank has been examined either independently or in cooperation with State banking departments, in which latter case independent reports have been made by the Federal Reserve examiner. It has been found necessary to keep in closer touch with the condition of all national banks and to work in even closer cooperation with the chief national-bank examiner of this district than in previous years, and satisfactory results have been obtained thereby. RESERVE POSITION. Although the reserve position of the bank would appear to show less fluctuation than in 1918, this has been brought about only through the adjustment of reserves by rediscounts with other Federal Reserve Banks. The bank's reserve position has been affected quite as much by transfers of funds by the Treasury Department out of the district as by actual commercial demand. The transfers made from the proceeds of the sale of Government securities were mostly to the Federal Reserve Bank of New York. A heavy decline in the reserve position appeared early in November, due to heavy demand on the local banks for commercial purposes and incidental to the payment of local taxes. Municipal obligations created in this district in anticipation of these tax payments had been largely purchased outside of the district and on becoming due they withdrew quite an amount of the tax money from the district. The adjusted reserve percentage—• eliminating gold received from rediscounts with other Federal Reserve Banks—-has been unusually low except during the months of July, August, and September, the year ending with an adjusted reserve of 27 per cent, and on one occasion falling as low as 23 per cent. BANK OF ENGLAND STERLING ACCOUNT. On April 2, 1919, final payment was received by this bank on account of its share of the gold which had been deposited with the Bank of England on June 27, 1917. The original amount apportioned to this bank was $3,675,000. During the summer of 1919 the United States Grain Corporation received payment in gold for food sold in Germany. The gold was forwarded to the Bank of England to be held for the account of the Federal Reserve Bank of New York. As this was received by the Bank of England and counted, the various Federal Reserve Banks assumed a proportionate share of the total. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

306 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. The first allotment of this gold was made on September 17, 1919, and the final one brought the total allotment for this bank to $12,638,000. However, before all adjustments had been made, the Federal Reserve Bank of New York commenced to sell part of this gold. The first sale was on October 2, 1919, and sales continued during the remainder of the year. As the year closes, this account stands at $9,600,000. RELATIONS WITH COMMERCIAL BANKS. Treasury financing and commercial expansion during the year have necessitated the closest cooperation between the officials of the Federal Reserve Bank and those of the commercial banks of the district. In connection with the Treasury financing, it was found necessary, in order to meet the quota of Treasury certificates placed on this district at each issue, to allot a percentage to each commercial bank in the district, that percentage being based upon each bank's total resources. Notwithstanding constantly increasing demands of their commercial customers and the tempting rates on commercial and call money, most of the banks in this district not only took their full quota of Treasury certificates but kept their commitments down and met the suggestions of this bank's officials regarding their credit lines. The governor and chairman of the board of directors of the Federal Reserve Bank have had meetings, when conditions seemed to make it necessary, with the executive committee of the Boston Clearing House, and discussed matters pertaining to the general credit situation in the district. Seven new national banks opened for business during the year, all but one being located outside of Boston. Four national banks went into liquidation, all but one of these, which consolidated with another member bank, being converted into State banks. Five trust companies were admitted during the year, all from Massachusetts, bringing the total number of trust company members to 36 and the total number of member banks to 432. While there are apparently a number of trust companies in the district that are not members of the Federal Reserve System, a large percentage do a character of business that probably does not warrant their joining the reserve system. Under the banking laws of most of the New England States, the investments of savings departments of trust companies not only must be segregated but are chiefly limited to investments of a character that are not eligible for rediscount purposes in the Federal Reserve Bank, these investments being largely in real estate mortgages and securities. State laws also either require no reserves against savings deposits or else require reserves considerably lower than called for by the Federal Reserve Act. Of the total resources of nonmember banks, over 135 millions, or 30 per cent, are composed of savings deposits. Although nonmember State banks in many cases no doubt indirectly used the resources of the Reserve Bank for accommodation, i. e., through their Boston correspondents, the effect of such borrowings on the general credit situation has been unimportant, these loans having largely been made at rates higher than those maintained by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTKICT NO. 1—BOSTON. 307 the Federal Reserve Bank, borrowings for commercial purposes being mostly at 5§ and 6 per cent. The deposits of mutual savings banks and savings departments of commercial banks in this district have shown a heavy increase. While it is difficult to give the exact figures of this increase, there is no doubt that it will exceed 200 millions. Forty-two national banks have been granted special authority by the Federal Reserve Board to exercise fiduciary powers. DEPOSITS. The reserve accounts of member banks (collected funds) show an increase of some 16 millions over the previous year, having expanded from 101 millions on December 31, 1918, to 117 millions on the same date in 1919. This increase reflects the growth of deposits in member banks and also includes the reserves of trust companies admitted during the year. There has been greater penalizing of banks for deficient reserves than during the previous year, probably due to the policy inaugurated on July 1 of requiring member banks to make reports of average deposit liabilities for weekly periods if located in Boston and for semimonthly periods if located elsewhere, instead of monthly, as heretofore. On the other hand, the policy of allowing all banks outside of Boston to remit for checks sent them for collection instead of charging such collections to their accounts has enabled the banks to handle their reserve accounts more satisfactorily. The account of the Treasurer of the United States has shown great fluctuations during the year. At times, when funds have been drawn in from depository banks, the Treasury balances carried with this bank have been very large, but transfers to other districts and the payment of maturing Treasury certificates have not only at times drawn this account very low, but have necessitated the bank purchasing Treasury certificates for a day or two to cover overdrafts. CURRENCY. During January currency receipts were unusually heavy, probably due to the large expansion which occurred just previous to the Christmas holiday season. The question of properly sorting and counting this currency presented a difficult problem, as at that time the bank employed only a small number of money counters and its quarters were inadequate. As rapidly as possible this force was augmented and a new system of counting put into operation. A steadily increasing number of banks have taken advantage of the plan put in operation in October, 1918, whereby the Federal Reserve Bank absorbs the charges for shipping incoming and outgoing currency. During the year over $500,000,000 of currency was received and $400,000,000 paid out. The demands of December, 1919, were even heavier than those of the same month in 1918, and it is expected that much of this currency will speedily be returned from general circulation. While during the earty months of the year the bank accumulated a supply of about $500,000 in silver coin and $75,000 in nickels and dimes, after the December demand had run its course there was less than $25,000 of this coin in the bank's vaults, notwithstanding the fact that heavy purchases were made all during November and December. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

308 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE NOTES. Every year has shown a steadily increasing issue of Federal Reserve notes by this bank, for, unlike the situation that appears in other Federal Reserve districts, where agricultural seasonal demands expand and contract the note issues, the demand in this Federal Reserve district has been constant and increasing, except for fluctuations due to the Christmas retail trade. The interdistrict movement of Federal Reserve notes has been considerably heavier than in 1918, especially with New York, Philadelphia, and Chicago, and should be given careful study by the Federal Reserve Board. The handling, counting, and sorting oil these notes, together with other currency, has called for a large increase in the force and accommodations of the money department, from 71 to 104. It has also been found necessary to increase the supply of unissued Federal Reserve notes. FEDERAL RESERVE BANK NOTES. The further withdrawal of silver has resulted in the retirement of large amounts of silver certificates by the Treasury Department. This has called for some other circulating medium to replace that retired, especially $1 and $2 notes. To fill this demand, the Federal Reserve Bank has increased its issue of Federal Reserve bank notes to $21,000,000. All these are secured by special 2 per cent certificates of indebtedness issued under the Pittman Act. COLLECTION OF CHECKS. From the inauguration of the collection system by the Federal Reserve Bank, all banks in New England have remitted for their checks at par. in the case of member banks it had been customary to enter a deferred charge against their reserve account, while nonmember banks had the privilege of remitting for their checks after receipt. On December 1 all banks were placed on a remittance basis, a plan which greatly aided member banks in maintaining their reserves at the required amounts. Boston banks are now permitted to deposit in one package all checks on New England banks instead of being required to prepare a package of the checks drawn on each bank. As a result the number of items handled per day has increased to about 100,000 and the force handling these items has increased from 109 to 173. INTERNAL ORGANIZATION. There have been but few changes in the list of officers during the past year. However, the increase in departmental work has called for a large addition to our clerical force—an increase from 508 employees on December 31, 1918, to 629 on December 31, 1919, the increase for the most part being in the money and transit departments, and being about evenly divided between men and women employees. BANKING QUARTERS. The problem of housing the activities of the bank under one roof and of adequately safeguarding the cash and securities which it is called upon to handle has been exceedingly difficult. The premises Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTBICT NO. 1—BOSTON. 309 at 95 Milk Street, purchased in June, 1918, containing some 13,000 square feet, were subsequently found to be inadequate for the bank's purposes, and as suitable adjoining property could not be obtained the directors decided to sell this property and to purchase elsewhere. It was accordingly disposed of and at a substantial net profit over all carrying charges, a tract of some 40,500 square feet being then purchased for $1,400,000, which has a frontage of 181 feet on Pearl Street, 267 feet on Franklin Street, and 128 feet on Oliver Street. This location is in close enough proximity to the banking center of Boston and its dimensions are such as to make its use entirely adequate for the bank's purposes. CERTIFICATES OF INDEBTEDNESS. United States Treasury financing, while decreasing in volume as the year 1919 drew to a close, was heavier for the first six months of the year than in any previous similar period. The Victory Liberty loan being the only long-term loan placed during the year, the Treasury Department was obliged to finance itself largely through the sale of certificates of indebtedness issued in anticipation of taxes, and other short-time certificates of indebtedness. These certificates were issued at frequent intervals, occasionally more than one issue being placed on sale at the same time. Although the committee in charge of the sale of certificates of indebtedness did splendid work, it was with difficulty, owing to the general conditions of the investment and money markets, that quotas were even approached. General commercial demands on the banks were such that subscriptions had to be obtained through personal solicitation. Most of the subscribing banks paid for these certificates by credit, as in previous years. These deposits were gradually withdrawn to meet Government requirements. These Government deposits, although no doubt having an important influence in the volume of certificate sales, have been, on the other hand, a rather unsettling factor in the general credit situation. As banks distributed these certificates to the public, they used the money thereby obtained as a basis for granting additional credits and when these Government deposits were later withdrawn had recourse to the Federal Reserve Bank or to their own correspondents for money with which to meet these payments. In connection with the different offerings of Treasury certificates of indebtedness, the Federal Reserve Bank has during the year acted as a medium to assist in the distribution of certificates between banks and has placed and filled orders for them. At the close of the year $369,000 of certificates were held for resale. VICTORY LOAN. The announcement made early in the year by the Secretary of the Treasury that there would be but one more popular offering of bonds enabled the Liberty loan committee to hold intact its volunteer organization that had handled so successfully the four previous bond issues, until after the flotation of the fifth or Victory loan, opened for subscription by the Secretary of the Treasury on April 22. The quota allotted to New England was $375,000,000 and the subscriptions received were $427,223,750, or 113 per cent, repre- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. sen ting subscriptions received from 817,822 individual subscribers, as reported by banks. The amount finally allotted to the district by the Treasury Department was $371,910,150. This Victory loan, owing to the improvement in the organization of the Liberty loan committee and to the fact that the Treasury Department had announced that it would be a closed issue and that it would be the last popular offering, was distributed as well, if not better, than any previous loan. Banks were not encouraged to solicit subscriptions on the "subscribe and borrow policy," as in the fourth loan, and furthermore subscribers were encouraged to subscribe on the Government installment plan. With the subscription to the Victory notes, the total amount of long-term Government securities subscribed for in the New England district amounted to over $2,000,000,000. Previous to May 20, when the initial payment of 10 per cent was due on subscriptions, about $35,000,000 of bonds were disposed of in advance of the issue for cash. In anticipation of the Victory loan, Treasury certificates of indebtedness amounting to $475,792,500 had been sold in the district which could be used in payment for Victory bonds, but only a negligible amount of these were so used, banks preferring to hold the certificates until they matured. The percentage of subscription to the Victory loan in the several New England States was about equal to that of previous loans. The Victory notes were issued in two series—4f per cent and 3J per cent, the latter being tax exempt. The bank delivered $317,644,500 of 4f per cent notes and $54,254,650 of the 3f per cent. WAR-SAVINGS DIVISION. On November 15, 1918, the Secretary of the Treasury definitely placed the distribution of all Government securities under the governor of each Federal Reserve Bank. This included the Liberty loan issues, Treasury certificates, and war-savings certificates. Until that date the war-savings organization had been directly conducted by the Treasury Department in Washington. As the various State committees had largely resigned, this necessitated the building up of almost an entirely new organization in this district. CUSTODY DEPARTMENT. This department has become of increasing importance during the year, in connection with the collateral against notes discounted with the bank and. collateral pledged against Government deposits. The added activities placed on this department have called for an increase in the clerical force. Member banks have also become accustomed to leave securities in this department for safe-keeping. The character of the collateral pledged during the year has changed to quite an extent, commercial paper increasing in volume and securities other than those of the United States Government showing a material decrease. The cutting of coupons on collateral held in this department has become an important factor in its activities. The handling of the coupons and bonds of the Government in the bond department has also been increasingly heavy, that department having redeemed no less than 7,000,000 coupons, amounting to $44,000,000, during the year. This same department during 1919 handled 961,000 odd bonds of the fourth loan and 1,000,000 bonds of the Victory loan and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1—BOSTON. 311 157,900 Treasury certificates. That these securities have been handled without loss demonstrates to some extent the efficiency of the bond department. The privilege of converting Liberty loan bonds carrying 4 per cent interest into bonds carrying 4J per cent interest was reopened on March 9, 1919, and many holders have taken advantage of this opportunity. FOREIGN EXCHANGE. Under the presidential proclamation of January 26, 1918, this bank was required to license all dealers in foreign exchange and to obtain reports of those who were doing an active business. Before the proclamation regulating foreign exchange was rescinded on June 26, 1919, this bank had issued licenses to over 1,600 dealers. In addition, permits to export coin and currency were issued to a number of concerns and banks. Blanket permits also were issued covering the shipment of Canadian currency to Canada and reports from holders of these permits indicated that a considerable amount of money was returned to that cquntr}r. In order to provide means for the payment of imports from India, arrangements were made whereby this bank was enabled to sell exchange on that country through the Federal Reserve Bank of New York. Lesser amounts of exchange on Argentina and Peru were also provided through the same channel. On June 26, 1919, all regulations concerning foreign exchange with only minor exceptions were repealed and therefore this department of the bank ceased operation on July-1, after about a year aad a half of existence. CONCLUSION. The Treasury financing, after the successful flotation of the Victory loan, has been of diminishing volume, so that as the year ends it is intimated that hereafter such financing will be so done as to divorce the Federal Reserve Banks from its influence. The foreign exchanges, while still unsatisfactory, will, no doubt, be helped by the relief which the Edge bill, recently passed by Congress, can afford. The responsibility of the Federal Reserve Banks will now be very great. The credit situation, which is far from satisfactory, must be brought back nearer to normal, but to do that without causing undue distress, will require the most careful judgment and foresight on the part of the officials of those banks, and the closest cooperation with the Federal Reserve Board. As this report shows, the demand for credit by member banks on the Federal Reserve Bank of Boston has been insistent &nd increasing. The year ends with the total earning assets—investments-—at not only the highest point of the year, but, including bills rediscounted with other Federal Reserve Banks, they reach a total of over 300 millions against a high point of about 200 millions the previous year, although there has been only a slight increase in the gold reserve. With cooperation between the Federal Reserve Bank, the local bankers, and business men, all working together to gradually restore more normal conditions of business, it is believed that the desired results may be obtained without undue hardship to legitimate business. It will, however, take patience, cpurage, and complete understanding between these elements if this is to be accomplished. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT A.—Movement of principal earning assets of the Federal Reserve Bank of Boston during the calendar year 1919. [In thousands of dollars.] 5 6 Date. D b S y s t i a s p e c t U c a e o u p s n u r e i e w n r t d e t a e d r d c p o O a d u t p i n h s e - t e e r r . d 1+2 c l P - e f e n -3 r t. m i b n o B a o u r i k l p g l e e s h n t t . d b e i T o s d b u c o i a o l g t l n a u s h l d n t. t- s U e S c n t u a i r t t i e e t s d ies e a a T s r s o n e t i a t n s l g . obligations. Jan. 3 120. 8,419 ! 129,194 93.5 12,538 141,732 9,521 151,253 10 121, 9,035 j 130,989 93.1 13,689 144,678 9,521 154,199 17 118 7,957 126,351 93.7 15,354 141,705 10,264 151,969 24 118! 8,744 !126, 778 93.1 18,088 144,866 9,264 154,130 31 118! 7,774 j125,856 93.8 19,781 145,637 9,954 155,591 Feb. 7 133! 7,844 i141,218 94.4 15,588 156,806 9,954 166,760 14 , 146: 7,318 153,721 95.2 11, 213 164,934 10,954 175,888 20 138! 7,831 ]145,989 94.6 12,033 158,022 11,954 169,976 28 139; 6,361 146,202 95.6 9,241 155,443 12,954 168,397 Mar. 7 143: 6,206 !150,007 95.9 10,393 160,400 12,954 173,354 14 144; 5,245 !149.762 96.5 9,816 159,578 14,954 174,532 21 136 5,085 I141^949 96.4 10,572 152,521 14,954 167,475 28 148! 5,053 j153,920 96.7 15,425 j 169,345 14,954 184,299 Apr. 148' 4,849 153,480 96.8 7,152 160,632 15.954 176,586 151 5,564 157,297 96.5 8,032 165,329 15,956 181,285 148' 5,864 154,482 96.2 6,402 160,884 16.955 177,839 157! 5,376 I 162,444 96.7 9,694 172,138 17,255 189,393 J J M u u a n ly y e 1 1 1 1 1 1 1 1 1 1 i5 5 4 4 4 4 4 3 3 4 4 2 5 4 6 s 4 5 8 3 3 3 : : ; , : , , , , , , 1 5 5 5 9 4 4 4 4 6 0 4 7 , , , , , , , , , , , , 1 1 9 8 5 4 9 4 5 5 4 9 9 6 6 5 1 7 8 9 4 7 5 9 9 6 9 5 0 8 9 5 4 6 6 2 I j I I I 1 1 1 1 1 1 1 1 1 1 1 1 4 3 4 5 5 5 5 4 5 3 5 6 6 7 9 0 7 0 3 1 8 5 8 3 ' , , , , , , , . , , , , 3 0 1 6 1 1 1 1 7 5 7 0 7 2 1 7 8 6 7 6 5 1 3 2 1 4 6 9 9 7 4 7 7 2 0 2 9 9 9 9 9 9 9 9 9 9 9 9 4 3 6 6 6 7 6 4 3 6 6 7 . . . . . . . . . . . . 4 9 4 7 7 0 8 8 2 5 5 2 1 2 1 1 1 1 1 1 2 1 1 1 3 5 9 9 7 5 2 3 8 4 8 3 , , , , , , , , , , , , 2 4 2 0 4 8 7 9 8 6 1 1 0 4 5 3 4 5 7 2 3 4 8 8 4 5 6 3 0 9 3 0 2 2 0 0 I I I ! ! j j 1 1 1 1 1 1 1 1 1 1 1 1 6 6 6 6 7 6 5 7 6 7 7 6 4 7 8 1 3 2 5 5 8 2 6 6 , , ' , , , , , , , , , 3 1 9 4 3 1 7 6 3 9 0 7 5 7 1 2 0 3 6 2 5 4 9 6 4 5 6 0 7 7 0 2 2 2 9 8 1 1 1 1 1 1 1 1 1 1 1 7 7 7 7 7 7 7 7 8 7 7 , , , , , , , , , , , 4 4 4 4 4 4 4 4 4 4 4 7 8 5 8 8 8 8 5 5 8 7 1 4 5 5 5 5 4 5 5 4 2 1 1 1 1 1 1 1 1 1 1 1 1 8 8 9 8 8 8 8 8 8 7 8 9 9 5 0 3 9 6 6 3 4 1 2 4 , , , , , , , , , , , , 8 2 4 8 1 7 4 8 1 5 1 6 9 0 5 3 6 7 2 2 0 5 9 3 1 1 3 9 8 5 3 6 6 4 2 2 130, 6,570 !140,571 95.3 26,971 ! 167,542 21, 993 189,535 Aug.. 1 1 3 3 7 4 , , 6 8, , 2 9 7 8 6 6 i I1 1 4 3 4 6 , , 7 4 0 1 6 2 9 9 - 3 5 . . 9 1 2 2 6 6 , ,8 72 6 . 2 'i 1 16 7 3 1 , , 2 4 7 3 4 1 2 2 1 1 , , 9 9 9 9 3 3 1 1 9 8 3 5 , , 4 3 2 6 4 7 128, 8,433 I 120,181 92.3 25,184 145,365 22, 093 167,354 111, 8,517 ! 115,680 92.6 35,756 151,436 21,989 173,425 107, 7; 948 i115,692 93.1 45, 755 161,447 21,989 183,436 Sept. 1 1 0 1 7 2 , , 7 7 , , 4 5 4 0 1 8 ' 1 1 1 1 6 9 , , 1 5 7 1 9 5 9 9 3 3 . . 5 8 4 4 4 6 , , 9 3 5 3 1 0 1 1 6 6 1 5 , , 1 8 3 4 0 5 2 21 1 , , 9 9 8 8 8 9 1 1 8 8 7 3 , , 8 1 3 4 3 9 108, 7,895 123,795 101.8 44,279 168,074 22, 019 190,058 115, 9,451 133,302 92.8 42,963 176,265 21,984 198,249 Oct. 1 12 2 2 3 , , 1 9 0 , ,4 0 5 8 6 0 1 1 3 3 1 1, , 8 4 2 0 5 0 9 9 2 3 . . 0 1 4 4 5 1 , , 8 6 8 7 0 5 1 1 7 7 7 3 , , 2 5 8 0 0 0 2 2 1 2 , , 9 2 8 7 4 8 2 1 0 9 0 5, , 7 9 7 9 8 0 120, 12,877 133,981 90.4 46,078 ISO,059 23,710 202,273 121, 11,641 120,787 90.4 46,385 167,172 22.214 189,757 109, 10,775 121,510 91.1 49,117 170,627 22', 585 192,729 110, 13,549 141,113 90.4 62,622 203,735 22,102 225,714 Nov. 127, 28, 7J 5 158,951 81.9 42,069 201,020 21,979 223,490 130, 32, 763 159,841 79.5 50,555 210,396 22,470 233,384 21 127, 39, 236 165,428 76.2 33,348 198,776 22,988 221,877 28 , 126, ' 39,870 145,738 72.6 36,26(3 182,004 23,101 204,624 Dec. 105, 38,889 166,944 76.7 42,707 209,651 22,620 231,942 1 1 2 9 . . 1 13 2 4 8 , , 5 4 6 9 , , 5 6 5 3 9 0 1 1 9 8 4 3 , , 8 88 3 3 6 7 7 0 3 . . 9 0 1 1 4 6 , ,5 4 0 1 0 2 2 1 1 9 1 8 . ,2 3 9 4 5 2 2 22 2 , , 1 2 3 9 S' 1 ! 2 2 2 3 0 3 , , 4 5 3 4 2 2 26.. 138, 22,200 I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1—BOSTON. 313 EXHIBIT B.—Movement of gold and cash reserves, Federal reserve note and net deposit liabilities, and the reserve percentage of the Federal Reserve Bank of Boston during the calendar year 1919. [In thousands of dollars.] Katio of Federal cash re- Gold Total reserve Net serves to Date. reserves. res c e a r s v h es. in n a o c te tu s al deposits. (3+4.) a n n e d t d F e e p d o e s r i a t l circulation. reserve note liabilities combined. Jan. 3 99,045 101,733 160,506 76,556 237,062 42.9 10, 109,897 114,192 159,053 93,023 252,076 45.3 17. 102,573 106,145 148,985 92,271 241,256 44.0 24. 113,691 117,546 148,332 105,434 253,766 46.3 31. 110,461 114,625 149,565 102,241 251,806 45.5 Feb. 7. 105,110 110,166 152,479 105,061 257,540 42.8 14. 109,284 114,533 155,884 114,730 270,614 42.3 20. 110,338 115,988 158,190 107,459 265,649 43.7 28 118,757 124,637 159,552 112,578 272,130 45.8 Mar. 7. 112,761 119,089 160,876 110,217 271,093 43.9 14. 107,445 114,011 163,142 102,736 265,878 42.9 21. 102,359 108,693 165,338 87,414 252,752 43.0 28. 116,574 122,884 166,874 116,537 283,411 43.4 Apr. 4. 107,533 113,709 169,609 96,107 265,716 | 42.8 11. 121,455 127,537 171,265 112,328 283,593 45.0 18. 116,303 122,674 174,092 100,522 274,614 i 44.7 25. 112,610 118,760 177,737 103,440 281,177 ! 42.2 May 2. 103,608 111,560 176,931 102,033 278,964 | 40.0 9. 111,566 118,817 176,024 97,620 273,644 i 43.4 16. 124,615 132,052 171,595 123,225 294,820 | 44.8 23. 113,546 121,262 169,647 107,321 276,968 43.8 29. 122,771 130,127 172,171 115,012 287.183 I 45.3 June 6. 112,397 119,481 173,771 92,962 266,733 44.8 13. 115,796 122.855 172,632 109,650 282,282 43.5 20. 117,509 124,917 172,757 109,972 282,729 i 44.2 m 27. 108,533 115,574 176,159 102,438 278,597 | 41.5 \l 105,428 111,953 182,631 91,532 274,163 40.8 130,114 136,396 181,787 113,275 295,062 | 46.2 18. 121,902 128,433 178,961 104,804 283,765 ! 45.3 25. 130,336 137,841 180,481 117,342 297,823 I 46.3 Aug. I. 128,116 136,378 183,544 115,188 298,732 45.7 136,890 145,614 189.597 108,807 298,404 I 48.8 15. 159,326 168,146 191,077 111,595 302,672 ! 55.6 22. 159,581 167,744 195,600 112,448 308,048 i 54.5 29. 155,777 163,444 198,967 115,481 314,448 i 52.0 Sept. 5. 149,489 156,502 203,986 107,846 311,832 | 50.2 12 154,490 161,064 205,316 106,661 311,977 i 51.6 19. 123,973 130,699 205,735" 82,704 288,439 j 45.3 26. 142,086 148,564 207,829 106,667 314,496 ! 47.2 Oct. 3. 146,072 152.014 211,341 104,085 315,426 j 48.2 10. 159,890 165,301 213,067 120,992 334,059 j 49.5 17. 160,841 166,342 215,092 121,101 336,193 | 49.5 24. 171,687 177,191 213,903 120,271 334,174 I 53.0 31. 167,466 173,043 212,096 120,792 332,888 i 52.0 Nov. 7. 145,153 150,860 215.598 126,682 342,280 1 44.1 14 144,731 149,882 218,358 120,829 339,187 ! 44.2 21. 132,430 137,538 216,914 119,357 336,271 I 40.9 28. 149.821 154,371 220,828 120,806 341,634 ! 45.2 Dec. 5. 163;609 168,144 223,073 115,996 339,069 I 49.6 12. 140,845 144,760 226,737 115,567 342,304 I 42.3 19. 152,070 155,795 238,211 103,715 341,926 i 45.6 152,865 156,103 246,455 108,572 355,027 j 44.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. I EEDERALRESERVE BANK OF BOSTON MO/EM EN T OF EARN ING ASSETS DURING CXLEfiPAR TEAR-1919. so 1 SO as n LIMITED STATES SECURITIES. PS •PS SO -Am mm SO 2S as ^^ mm 0 Q ACCEPTANCES 30U6HT too IOC so SO 60 60 40 40 20 20 0 O PERCENTAGE OriVARPAPER TO TOTAL DISCOUNTS. IPS TOTAL BILLS DISCOUNTED, <D; AND WAR PAPER, «W\ 250 2S0 22S TOTAL EARNIN6 ASSETS. JAN\FEB\MCH\APRL\MAr\J!JflE\/UUr\AU6. \SEPT\ OCT. \NOV\PEC Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1—-BOSTON. 315 FEPERALRESERVEBANKOrBOSTON NET PEPOSIT LIABILITY. 8 f.R.NOTE CIRCULATION, CASHRESERVES.AHPRESERYERATI0.I9I9. 70 70 60 60 SO SO V 40 40 30 30 20 20 10 10 O 0 RESERVE RATIO, CPERCEIHTAGEOFC+L) 2S0 200 /SO 100 100 SO SO DEPOSITANDER. HOTEUABIUTIES/L; AW TOTAL RE5ERYES, "€'. JAN. FEB. MCH.APRL MAY JUNt JULY AUG. SEPT. OCT. /TOK DEC. 178983—20 21 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT C.—Comparative balance sheet. (000 omitted.] Dec. 31, Dec. 31, Dec. 31, 1919. 1918. 1917. RESOURCES. Earning assets: Bills discounted, secured by United States war obligations.. 8124,529 $120,515 $43,898 Other bills discounted (commercial) 63,510 13,060 21,984 Acceptances purchased in open market 18,649 15,084 9,037 United States bonds 539 538 610 United States short term obligations 21,805 7,416 2,194 Total 229,032 156,613 77,723 Reserve cash: Gold (coin and certificates) 7,959 3,317 18,691 Gold settlement fund. 34,351 37, 292 16,977 Bank of JKngland sterling gold s 9,586 408 3,675 Other lawful money 4,037 2,288 3,574 Total 55, 933 43,305 42,917 Reserve against Federal reserve notes— Gold with Federal Reserve agent 73,511 59,733 40,896 Gold redemption fund 26,312 7,812 2,000 Other resources: Interest accrued on United States securities 222 33 21 Due from Liberty loan subscriptions I 567 118 Expense, Liberty loan, etc. (recoverable) I 204 573 144 Items in process of collection i j 73,236 52,910 15,007 Exchanges for clearing house and cash items.. 4,357 10,548 3,216 Federal Reserve notes and other cash on hand. 7,901 13,809 4,661 Due from Government depositaries 48,373 30,014 66,489 Redemption fund Federal Reserve bank notes. 1,072 320 Real estate for bank quarters 1,103 800 Total. 521,286 377,042 253,196 LIABILITIES. Capital fund: Capital paid in 7,107 6,691 5,858 Surplus 8,359 1,535 75 Deposits: Due to member banks, reserve account 117, 294 101,806 82,842 Due to Federal Reserve banks, collected funds * 21,725 17,467 3,870 Due to banks, uncollected funds ' 45,469 29,269 13,780 Due to Treasurer of the United States, general account. 1,123 10,499 2,419 Due to Treasurer of the United States, special account.. 48,373 30,014 66,489 Cashier's checks, outstanding, etc 566 411 20 Foreign Government credits 5,277 Other liabilities: Federal Reserve notes outstanding 244,093 168,986 77,296 Federal Reserve bank notes outstanding 20,912 6,889 Unearned discount and interest 807 467 468 Reserve for depreciation and interest 93 93 Reserve for franchise tax and other taxes 88 1,460 75 Mortgage on real estate 750 Total. 521,286 377,042 253,196 Liability for rediscounts with other Federal Reserve Banks. 60,121 48,962 44,477 1 Offsetting items to be cleared through gold settlement fund. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2.—NEW YORK. PIERRE JAY, Chairman and Federal Reserve Agent. Recourse to the credit facilities of the Federal Reserve Bank of New York during 1919 was more constant and general and in larger volume than during 1918. The maximum of its earning assets during 1918 was $968,000,000. In 1919 it was $1,079,000,000. As the necessity for the banks to borrow from the Federal Reserve Bank arose primarily from their absorption of one form or another of Government obligations, it was natural that these obligations should have continued to be used during the year as the chief basis for accommodation at the Federal Reserve Bank, though loans based on commercial paper showed a marked increase from 1918. But the impelling reason why loans continued to be based mainly on Government obligations was the preferential rate established for such transactions and the greater ease and simplicity of borrowing with such security. In both 1918 and 1919, although it was the volume of Government obligations outstanding which created the necessity for borrowing at the Federal Reserve Bank, the fluctuations in the amount of this borrowing arose directly from the movement of Government funds into or out of the district, as was noted in the last annual report. During the year the fluctuations in earning assets and the movements of Government funds effected considerable variations in the reserve percentage of the Federal Reserve Bank of New York, as appears in the charts accompanying Exhibits A and B. In its weekly published statements the highest per cent of reserves against deposit and note liabilities was 54.5, on June 20, and the lowest per cent, 40, on December 26. Changes from week to week are shown in Exhibit B and accompanying diagram. Frequently during the year, in order to equalize reserve percentages, this bank sold bills from its portfolio to other Federal Reserve Banks. The volume of these sales aggregated $312,739,000. On the other hand, as a partial offset to this larger aggregate transfer of investments, the Federal Reserve Bank of New York rediscounted for or purchased bills from other Federal Reserve Banks to the aggregate amount of $55,826,561.89. The following table shows the reserve figures of this bank and of the Federal Reserve System when the United States entered the war and at the close of 1918 and 1919: Federal Reserve Bank of All Federal Reserve New York. Banks. Date. Per cent. Amount. Per cent. Amount. Apr.6,1917 92.0 $426,814,000 84.7 $962,662,000 Dec. 27, 1918 42.5 637,295,000 50.6 2,146,219,000 Pec. 26, 1919 40.0 616,040,000 44.8 2,135,536,000 317 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. During the year the purchase from the Treasury of special certificates of indebtedness for short periods in order to supply the Treasury with funds to meet maturing obligations pending the transfer of funds from other districts, or their withdrawal from depository banks, aggregated $2,605,500,000; the largest amount of such certificates held at any one time was $260,000,000. The bank purchased during the year $24,321,000 United States 2 per cent certificates of indebtedness, which it hypothecated under the authority of the Pittrmn Act as security for Federal Reserve bank notes. The custom of purchasing certificates of indebtedness from nonmember banks, with an agreement on their part to repurchase within 15 days, was continued in 1919 as a means of encouraging their subscriptions to the issues. The largest amount of certificates held under repurchase agreements at any one time was $35,876,500, on May 6. This bank has continued during the year its policy covering the temporary purchase of bills, thereby assisting houses that deal in such paper from time to time in carrying their portfolios. The largest amount of bills so held at any one time was $14,288,851.73, on November 17. Below is a comparative summary of the discounts and advances made in 1919, 1918, and 1917: 1919 1918 1917 Number of applications received 23,237 14,831 2,513 Amount of apnlications accepted and discounted or advanced upon $42,449,491,133.87 $24,535,538,457.77 $6,513,225,285.60 Number of pieces of paper discounted or advanced upon 127,721 129,038 22,484 Largest piece of paper discounted or advanced upon $120,000,000.00 $135,000,000.00 $147,000,000.00 Smallest piece of paper discounted or advanced upon $2.81 $5.02 $25.00 Average size of notes discounted or advanced upon 8332,361.09 $190,141.96 $289,682.67 Number of banks rediscounting 546 522 322 ACCEPTANCES AND THE DISCOUNT MARKET. Purchases by months of bankers' acceptances and indorsed trade bills by this bank for its own account and for the account of other Federal Reserve Banks have been as follows: For the account of other For our own account. Federal Reserve Banks. Number of Number of items. Amount. items. Amount. January 2,850 $75,628,789.75 1,789 $46,516,341.45 February.. 2,115 56,351,763.56 1,209 31,772,303.09 March 2,013 53,350,194.52 1,329 34,959,972.36 April 2,645 71,653,945.23 1,217 33,966,815.31 May 2,300 60,721,633.14 1,252 34,190,164.37 June 4,768 142,516,454.53 I 2,875 81,900,544.26 July 4,832 129,118,992.41 I 2,749 73,976,160.83 August 2,301 64,910,475.76 1,903 46,094,342.25 September. 2,332 64,481,753.02 2,931 76,141,468.06 October 5,448 145.060,465.83 3,838 98,869,452.20 November. 5,145 152,643,970.06 3,109 79,417,045. .05 December.. 6,823 210.788,099.84 4,383 101,694,398.60 Total 43,572 •1,227,226,537.65 28,584 739,499,007.83 Digitized for FRASER i Includes $15,826,561.89 of bills bought from other Federal Reserve Banks. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2—NEW YORK. 319 PURCHASES FOR MEMBER BANKS. During the year 1919 this bank, as a service to member banks, has also bought bills in the open market for their account. This new service has been availed of by 38 member banks up to the end of December 31, 1919. Bills bought for their account aggregated $8,199,947 and comprised 873 pieces. Such purchases are made for member banks on their order, and if desired, this bank retains custody of the paper bought, and either collects it for the member bank's credit at maturity or makes such other disposition of it before maturity as may be desired. This service is without charge to members and through it several of them have become experienced buyers of bills on their own account, and find it no longer necessary regularly to avail themselves of the service. Others, having surplus funds for investment only occasionally, have not yet developed as individual buyers. From the very general interest manifested in this new service, the outlook for increasing activity in it is promising. BANKERS' ACCEPTANCES. The demand for bankers' acceptance credit continues to increase substantially and more bills are being created than ever before. Freer shipping facilities have promoted larger import movements, particularly from South America and the Orient, and increased commodity prices have resulted in very large dollar drawings from those markets. The increased price of cotton this year also has required much greater banking accommodation, which has largely taken bankers7 acceptance form, with the result that many new names have appeared in the New York market as acceptors, principally of banks located in the South and Southwest. The further development during the year of the business of accepting corporations and foreign trade banks has been rapid. At the end of the year such institutions located in New York had aggregate capital and surplus in excess of $38,802,000, and their liability for acceptances outstanding was approximately $90,000,000. While discount houses and dealers in bills have endeavored strenuously to accomplish distribution of this increased volume of bills and in the main have been fairly successful, the almost constant advance in money rates made their task increasingly difficult. Not only have they had to carry larger portfolios, often requiring for that purpose funds obtainable only at rates equal to or higher than those earned by their portfolios, but the higher rates for call money on investment securities attracted to that market out-of-town funds that would otherwise have been at the service of commercial requirements; and during the latter months of the year, as the market rates for bills yielded along with other rates to higher levels, there developed an instability that prevented satisfactory distribution. Under these circumstances the Federal Reserve banks absorbed an increasing amount of bills in the open market, buying from member banks and dealers alike at uniform rates for prime indorsed paper. EARNINGS AND EXPENSES. Earnings during 1919 aggregated $35,278,000, as compared with $25,315,000 during the preceding year. These increased earnings were due, of course, to the larger volume of discounts and advances Digitized fowr FhRiAcShE Rw ar and business financing necessitated during the year. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

320 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Total expenses during 1919 amounted to $5,565,000, exclusive of disbursements made for the account of the Government aggregating $4,963,642.44. This latter amount includes the cost of carrying on the departments of the bank performing fiscal agency functions for the United States, and the Government loan and war savings organizations. These payments have been reimbursed or are now in process of reimbursement by the Treasury Department. The amendment to the Federal Reserve Act, approved March 3, 1919, directed that each Federal Reserve Bank should pay its net earnings into a surplus fund until it amounted to 100 per cent of its subscribed capital and that thereafter it should pay into surplus each year a further 10 per cent of its net earnings, before transferring to the Treasury of the United States any of its surplus earnings as a franchise tax. This was made retroactive so as to cover the surplus earnings of the year 1918, which had not been called for by the Treasury Department pending the consideration of this legislation by Congress. Accordingly, at the close of the vear the surplus of the Federal Reserve Bank of New York is $44/781,500, or 100 per cent of its subscribed capital, to which is added 10 per cent of the remaining net earnings of the present year, or $300,432.63, making in the aggregate a surplus of $45,081,932.63 to which the United States has reversionary ownership. The amount transferred to the Treasury of the United States as a franchise tax was $2,703,893.63. From the total net earnings of the bank amounting to $29,713,000 deductions have been made to cover certain known items of depreciation and to provide reserves for special purposes. Thus, the appraised valuation of the old buildings and foundations on the property acquired during the year as a part of the site for the new bank building, has been charged off in the amount of $900,031.72. The loss in value of the foreign exchange held by the bank as based on market rates at the close of the year, amounting to $325,741.35, has also been provided for, and an additional sum of $200,000 has been set aside for the establishment of a self-insurance fund. Other charges are $169,514.40, to cover the tax on Federal Reserve bank note circulation for 1919, and $168,681.70 to cover the assessment to be made by the Federal Reserve Board for its expenses. Semiannual dividends of 3 per cent were paid to stockholders on June 30 and December 31. NOTE ISSUES. Exhibit B shows the movement of the Federal Reserve notes of this bank in actual circulation during the year. The decrease during the first month of the year reflects the normal release of currency following the crop moving and holiday periods. The maintenance of the circulation at a high point throughout the balance of the year, which reached $770,000,000 on July 7, is merely indicative of great trade activity at steadily increasing prices. The substitution of Federal Reserve notes for gold certificates seems to have proceeded as far as practicable. The banks of the district are carrying very small stocks of gold certificates, and though they continue to retire from general circulation those which are presented over their counters, the volume of gold certificates in general circulation in the district is now very small indeed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2—NEW YORK. 321 With the continuance during the early part of the year of the export of silver to oriental countries, Federal Reserve bank notes have been issued in increasing volume to replace silver certificates retired from circulation. The amount of Federal Reserve bank notes of this bank outstanding on December 31, was $58,000,000, which compares with $33,000,000 a year ago. COLLECTIONS AND CLEARINGS. Check collection.—The increasing use which is being made of the check collection facilities of the bank is indicated in the following figures, showing the number of items handled year by year, and the amount in dollars: Number of Period. items. Amount. 1915 (June 1-Dec. 31). 1,262,211 j $1,334,015,772 1916 6,841,364 5,160,192,000 1917 19,408,179 20,104,527,000 1918 35,348,601 42,581,833,000 1919 74,463,917 56,540,748,116 During 1919, in addition to handling an increased number of items, progress was made in many directions. Chief among these was the notable increase of 6,580 banks in other Federal Reserve districts added to the par list, making the total number of such points 25,571, out of a total estimated number of banks and bankers of 29,586. Note collection.—The facilities of the bank in the collection of notes, drafts, and coupons were further developed and increasingly used. During 1919 the bank collected 83,534 notes and drafts payable in New York City, as compared with 39,302 the year before, and about 8,000 in 1917. The collection of such items payable elsewhere than in New York increased nearly 200 per cent during the year, aggregating 147,742 in number and $234,834,000 in amount. Through the Buffalo branch collections of a similar nature were made for the Buffalo territory. No charge is made by the Federal Reserve Bank for this service, but where a charge is made by the collecting bank it is passed back to the depositing bank. The bulk of these noncash items, however, is collected at par. During the year, of those payable within this district, about 97£ per cent were collected at par, and where charges were made the average rate was one-twelfth of 1 per cent. Of the items payable outside of this district, about 77 per cent were collected at par, and charges, when made, averaged about one-tenth of 1 per cent. Coupon collections.—The collection of matured bonds and coupons by this bank during 1919 was $25,000,000, as compared with $17,796,000 during 1918. The extent to which the member banks are availing themselves of this service is seen in the increase in the number for whom collections were made from 238 during 1918 to 531 during 1919. Gold settlement fund.—The settlements made through this fund during 1919, as compared with those of previous years, were as follows: 1919 $41, 932, 723,000 1918 32,935,576,000 1917 17,118, 917, 000 1916 2, 335, 225, 0 Digitized fo1r 9F1R5A SER 556, 432, 0 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

322 ANNUAL REPORT OF THE FEDERAL. RESERVE BOARD. RELATIONS WITH BANKS. The banks of the second Federal Reserve district as they were on December 31, 1919, classified according to their charters, whether national or State, and also according to membership in the Federal Reserve System, are as follows: State banks. Trust companies. Total. Location. N b a a t n io k n s. al Members. No b n e m rs e . m- Members.No b n e m rs e . m- Members.No b n e m rs e . m- Manhattan 31 15 19 15 8 61 27 Rest of New York State 457 24 166 35 41 516 207 Total New York State 4sS 39 185 50 49 577 234 New Jersev 135 5 11 26 61 166 72 Connecticut.... 13 0 1 2 15 15 16 Total for district 636 44 197 78 125 758 | 322 NEW MEMBERS OF THE SYSTEM. The number of State banks and trust companies, which are members of the system, increased during the year from 101 to 122. Twentytwo new State bank or trust company members were admitted, and one trust company formerly a member was merged with a national bank. The 122 members represent 31 per cent in number, and about 79 per cent in resources of the State banks and trust companies in the district which have sufficient capital to make them eligible for membership. FIDUCIARY POWERS FOE, NATIONAL BANKS. During the year the number of national banks in the district exercising fiduciary powers—authorized by the Federal Reserve Board, under the amendment to the Federal Reserve Act approved September 26, 1918—increased from 34 to 117. A number of these banks, especially those in the larger cities, are actively developing fiduciary business, but in the smaller places many of the banks have gone no further than to obtain the Federal Reserve Board's permission to transact it. THE RESERVES OF MEMBER BANKS. From the inauguration of the Federal Reserve System the reserves of member banks in this district were calculated by this bank on the basis of averages for monthly periods; but in other districts a number of other plans, some on a semimonthly, some on a weekly, and some on a daily basis were in operation. In the early fall the Federal Reserve Board thought it desirable to establish a uniform practice, and in conformity with general instructions issued by the Board, this bank instituted on October 1 the Board's uniform system, superseding the monthly reporting system in effect previously. Under the revised method weekly reports are received from member banks in the central reserve cities and reserve cities—that is, the Boroughs of Manhattan, Brooklyn, and The Bronx, and the cities of Albany and Buffalo—and semimonthly reports from members elsewhere. From these reports are computed each bank's net demand and time deposits for the weekly or semimonthly period, as the case may be, and the amount of reserve which each bank is required to keep at the Federal Reserve Bank. The penalty rate on deficient Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2—NEW YORK. 323 reserves has remained at 6f per cent throughout the }rear. Penalty payments amounting to $36,405.58 were slightly above those of last year, when the amount was $27,191.89. INTERNATIONAL FINANCIAL ARRANGEMENTS. Prior to January 1, 1919, this bank made certain financial arrangements with foreign banks or governments which were by way of preparation for a return to more nearly normal conditions in international commerce than had existed during the war. These arrangements were outlined in this report for 1918. The operations carried on in accordance with them during the year are summarized below: Bank of England.—Transactions with the Bank of England under the terms of our formal agreement have been very limited during the past year. We have opened a current account with them which has, however, remained inactive. The Bank of England is handling for our account the German gold purchased from the United States Grain Corporation, described elsewhere in this report, which involves a very considerable amount of work on their part. Bank of France.—Operations between this bank and the Bank of France have been very limited, being confined largely to our opening a current account with them and the occasional receipt of funds by us for their credit. Bank of Japan.—No active business has been transacted during the past year with the Bank of Japan, although it is expected that our relations with them may become more active in the near future. Philippine National Bank.—Our relationship with the Philippine National Bank has remained unchanged, there being no need for active operations, as they have a branch in New York. Be Nederlandsche Bank.—Our relations with this institution during the past year have become more active and we now perform for them many of the duties of a New York correspondent. They have opened a current account with us and also invest in bills in this market which are held by us in portfolio for them. The account which we opened with de Nederlandsche Bank for the purpose of receiving therein, for the use of the Treasury Department, the proceeds in guilders of the sale of wheat and other commodities, has been closed out during the past year. Norges Bank and Sveriges Rikshank.—Both of these accounts, which were opened at the request of the Treasury Department to effect disbursements for the War Department, have been closed out, the former on September 24, 1919, the latter on April 10, 1919. De Javasche Bank.—In April, 1919, a limited arrangement was effected between ourselves and de Javasche Bank whereby we agreed to hold United States gold coin in custody for them, open a current account in their favor, and buy bills for them in this market. This arrangement is now in actual operation. Bank of Spain.—This account was opened in August, 1919, at the request of the Treasury, to receive therein the pesetas which we purchased as fiscal agents of the United States to retire peseta certificates of indebtedness issued by the Treasury in connection with the 250,000,000 Spanish peseta credit. Operations through this account have been confined to such transactions. India.—Operations under the arrangement between the United Digitized forS FtRatAeSsE Ra nd the British Government by which American importers http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

324 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. obtained rupees through the Federal Reserve Bank of New York to t>ay for imports from India were concluded on May 12, 1919, when the ast sale was made. The total credits received by this bank under the arrangement from November 28, 1917, when it went into operation, to May 12, 1919, were 202,500,000 rupees, all of which were disposed of to our importers. Argentina, Bolivia, and Peru.—Transactions under the arrangements entered into between the United States and the Argentine, Bolivian, and Peruvian Governments, for the stabilization of exchange between the United States and those countries, also came to an end during the past year. The Argentine Government has withdrawn a portion of the deposit held by us for its credit under the terms of this agreement, but still retains a substantial amount on deposit with us. Under the Bolivian agreement, which provided for a maximum deposit of $5,000,000, we received $4,500,000, all of which was withdrawn during the first six months of the past year. No operations were carried on through this bank under the Peruvian agreement. GOLD IMPORTS AND EXPORTS. From January 1, 1919, to June 9, 1919, the Federal Eeserve Bank of New York forwarded to the Federal Reserve Board 810 applications for permission to export gold, silver, or currency, aggregating $151,811,816.82, of which it recommended that 703 applications, aggregating $138,258,264.62, should be granted. While the embargo was in force the amount of gold exported from the United States under license from the Federal Reserve Board aggregated $14,035,672, while imports during that period were $24,310,573, making a net gain in our gold supply from imports of $10,274,901. ACQUISITION OF GERMAN GOLD. The Federal Reserve Banks received in London approximately $173,000,000 in gold, representing payment by the German Government for foodstuffs bought in the United States. That amount was introduced into the gold reserves of the Federal Reserve Banks and is, therefore, tantamount to an importation. Approximately $42,000,000 of this gold has been sold to banks for exportation to the Far East, and would have been withdrawn from this country if it had not been available in London. The German gold mentioned above, which this bank purchased in May, 1919, from the United States Grain Corporation at bullion value, consisted of approximately 730,000,000 German marks against which we originally made an advance to the Grain Corporation of 92 per cent, or about $159,000,000, based upon a preliminary examination of the gold. This advance was later increased to 98 per cent, or approximately $170,000,000, as more accurate returns on the value of the gold were received. Two hundred and ninety million marks of this gold was deposited with the National Bank of Belgium, Brussels, and the balance, 440,000,000 marks, with de Nederlandsche Bank, Amsterdam. At our request the Bank of England undertook the transfer of this gold from the Continent to London, and as it arrived at the Bank of England it was introduced into our reserves and prorated among all the Federal Reserve Banks. All of the gold has arrived at the Bank of England, and most of it has been reduced to Digitized forb FaRrsA.SER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2—NEW YORK. 325 INTERNAL MANAGEMENT. Throughout the year the board of directors met weekly and the executive committee daily except on Saturdays and holidays. Other committees of the board have held meetings as occasion required. One of the subjects to which the directors and officers gave special attention during the first eight months of the year was the development of a form of internal organization which would facilitate the most effective conduct of the bank. After thorough study and analysis, a plan was adopted which went into effect on September 2. It has as its fundamental aim the separation of the functions of operation and organization, and involves placing the responsibility for conducting each department upon its own chief administrative officer and requiring it to transact completely the business falling within its province. Every activity is definitely allocated to a specific department, and responsibility is thus more definitely fixed. The office of cashier, through whom all operating matters, in the last analysis, formerly had to pass, is abolished. The officers are grouped as follows: (A) Junior officers, (B) senior officers, and (C) general officers. The junior officers are the managers of the various departments. Their title corresponds with the title of assistant cashier, formerly used. Each one of these managers is responsible for the duties of operation or organization as the case may be, which attach to his department, and has working under him subordinates authorized to sign within specified limitations and a sufficient staff to complete all business of his department. Each of the senior officers, called controllers, is assigned to one or more of the functions of the bank and is responsible for the development of policies relating to his particular function and for the supervision of the departments charged with carrying out the various aspects of such function. The controllers, therefore, do not operate the departments of the bank, but supervise and control their policies. The number of managers at present is 26, and the number of controllers is 12. At present some of the controllers are a< ting as managers and some of the deputy governors are a-v ting as controllers. The general officers of the bank are as follows: Governor, deputy governors, and chairman of the board of dire' tors. These officers form the managing committee of the bank with which certain controllers are from time to time invited to sit. The managing committee meets daily ex* ept Saturdays. Its members are not assigned to specific iuw tions or departments of the bank, but are concerned with general policies of administration. Another aim of this plan of organization is to center greater responsibility upon the junior and senior offi< ers and to open to them more opportunities for promotion than existed under the old form of organization, where there was only one (ashiership through whith all assistant cashiers would normally expect to receive promotion. The plan of fixing operating responsibility has been extended even below the rank of manager. In many of the departments there are divisions, each in charge of a (hief, and many of the larger divisions are divided into sections, each in charge of a supervisor. The plan of organization has now been in operation about four months, and seems to be working satisfactorily as a means of accelerating administration and of fixing and developing responsibility. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

326 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Living cost continued to increase during the year, and the directors, with the approval of the Federal Eeserve Board, supplemented the normal compensation of employees by additional payments. From January until October this additional compensation was 25 per cent on salaries up to and including $1,500 a year; 20 per cent on salaries of more than $1,500 up to and including $3,000; and 15 per cent on salaries of more than $3,000 up to and including $5,000 a year. For the last quarter the additional compensation was on the basis of 50 per cent on salaries up to and including $1,500: 40 per cent on salaries above $1,500 up to and including $9,000, and 25 per cent on salaries of more than $3,000 up to and including $6,000 a year; these higher percentages being in the nature of an adjustment for the year. THE BUFFALO BRANCH. The first branch of the Federal Reserve Bank of New York to be established was opened for business at Buffalo on May 15, 1919. The purpose was to make the facilities of the Federal Reserve Bank more readily available to banks in the western part of New York State. The territory assigned to the branch included the counties of Monroe, Livingston, Allegany, Orleans, Genesee, Wyoming, Cattaraugus, Niagara, Erie, and Chautauqua. It is optional with member banks in those counties to deal with the Buffalo branch or with the main office in New York. The branch was placed in Buffalo, a city of more than 500,000 people, whose industries are unusually diversified, because of its commercial and banking importance. The branch was established at the request of the Buffalo banks and all but one of the eligible State institutions not already members of the Federal Reserve System applied for and were admitted to membership. At present there are 75 member banks with capital and surplus of -131,186,000 in the branch territory, aside from 84 nonmember institutions. Functions of the branch.—The by-laws adopted for the branch permit it to exercise many of the functions which had been performed at the .main office in New York; nevertheless an intimate connection is to be maintained in all of its operations between the branch and the bank in New York. It is permitted to receive from member banks and other Federal Reserve Banks checks and drafts for collection on the same terms and conditions as they are received by the Federal Reserve Bank in New York. It sends items direct to all member and nonmember banks on the par list in this district for payment by remittance to the Federal Reserve Bank of New lork in New York funds or, if preferred, for payment by remittance to the Buffalo branch in Buffalo funds. In either case a single remittance may be made for letters received from both New York and Buffalo. It receives deposits from member banks and makes payments of money to or through them for the account of other member banks. These payments include the supply of currency in all denominations. It makes telegraphic transfers without charge for the account of member banks and Federal Reserve Banks. It collects maturing notes, drafts, bills of exchange and coupons for member banks in the Second Federal Reserve District, for the Federal Reserve Bank of New York or for other Federal Reserve Banks. It receives from member banks within its territory applications for discount of eligible paper, which are sent to New York, with recommendations by the Buffalo Digitized forb FrRanAcShE,R for final action and credit, or for such other disposition as http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2—NEW YORK. 327 may be desired for the applying member bank. It pays Government checks, Liberty bond coupons, maturing United States certificates of indebtedness and other Government obligations, and also receives and holds securities for safe-keeping for the account of member banks in its territory. FISCAL AGENCY OPERATIONS. The sale and handling of Government issues.—The sale of the Victory loan in the spring of 1919 was the final stage in the great series of Treasury operations for funding the country's war indebtedness. Like its predecessors the Victory loan presented a problem which was not limited to selling bonds, but extended to the creation of a new public attitude toward investments. In the 12 months of 1919 there were sold through the Federal Reserve Bank of New York a total of $4,506,155,500 of certificates of indebtedness, making a total of $11,019,491,000 since the war began and approximately 42.6 per cent of all the certificates sold in-the country since the issues were initiated. The general participation by the banks of this district in the purchase of certificates is shown by the fact that all but 84 out of a total of 1,262 commercial and savings banks in the district appear in the list of subscribers. The banks outside New York City received allotments to Victory loan certificates of 101 per cent of their total quota, as against 108 per cent in the case of the fourth loan certificates, and New York City banks received allotments of 126 per cent of their quota of Victory loan certificates as against 135 per cent of fourth loan certificates. The redemption of certificates in this district has been materially in excess of sales, indicating that many certificates sold in other districts have been sent to this market prior to their maturity dates. The total amount redeemed through this bank up to December 31 was $4,351,057,500, of which $2,872,177,500 were redeemed in cash; $646,031,500 were exchanged for other issues and $832,848,500 were presented in payment for bonds and in payment of taxes. The Victory loan.-—As in previous loans, the amount subscribed in the second Federal Reserve district to the Victory loan exceeded the quota assigned. Total subscriptions exceeded the quota by 31 per cent, thus placing the New York district at the head of all districts, not only in the total sold but in the excess subscribed above the quota assigned. The number of subscribers was less than in either the third or fourth loans, and the average subscription was greater than in either of those loans. The reduction in the number of subscribers is accounted for mainly on the ground that many subscribers on partial-payment plans were still paying on the two previous loans. Furthermore, the sense of universal obligation present in the campaigns when the country was still at war had somewhat passed. The increase in the size of the average subscription was a reflection of the greater financial attractiveness of the Victory loan. Government deposits.-—-The number of banks qualifying as depositaries increased from 867 in the fourth loan to 889 in the Victory loan. Custodians of collateral acted in 35 cities, a reduction from the earlier loans. Collateral agents of the second class for the sale of Treasury savings certificates, war-savings certificate stamps, and thrift stamps, were appointed by the Federal Reserve Bank, which received the securities Digitized for FRASER pledged by them as collateral. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

328 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. This year internal-revenue collectors deposited with us for the credit of the Treasurer of the United States, checks representing payments of income and excess-profits taxes, but these funds were not redeposited with depositary banks as was the case during June, 1918. inasmuch as the funds were required in most instances for immediate disbursement. Government disbursements.—Disbursements hy the Treasury Department through this bank have continued in very large volume throughout 1919. Nearly 13,000,000 Treasury checks were handled as against 11,100,000 in 1918, but the average size has been somewhat smaller. Consequently, the total of nearly $5,000,000,000 for a year ago was not reached. The day of largest transactions was on April 21, when 96,153 checks were handled. EXHIBIT A.—Classification of earning assets of the Federal Reserve Bank of New York, [In thousands of dollars.] Discounted paper se- Other Bills Total Date. cu U S r n t e a i d l t e e b s d v c p o a d u p i n s e - te r. d 1 + 2. Pe 1 r - 5 c -3 e . nt m i b n o a o u rk p g e e h n t t . b co il a u ls n n d d te is d - e U S cu n ta r i i t t t e e i s d es. e a a T t r o n t i a n i g war obli- bought. gations. 3 691,786 44,307 736,093 94. 0 76,294 812,387 43,241 855,628 10 . . .. 644,980 39,259 684,239 94.3 79,628 763,867 76,136 840,003 17 56?, 446 33,535 602,981 94. -1 84,148 687,129 169,139 856,268 24 663,904 46,653 710,557 93.4 93,385 803,942 47,852 851,794 31 ... 591,242 42,519 633,761 87.5 83,727 717,488 157,247 874,735 Feb 7 639,721 49,226 688,947 92.9 64,524 753,471 47,896 801,367 14 731,071 51,449 782,520 93. 4 54,927 837,447 49,426 886,873 20 .... 707,364 46,917 754,281 93.8 41,399 795,680 54,119 849,799 28 741,979 45,059 787,038 94.3 43,325 830,363 60,138 890,501 Mar 775,574 29,157 804,731 96.4 40,088 844,819 61,096 905,915 14 761,365 29, 234 790,509 96.3 16,897 807,496 64,852 872,348 21 6/6,608 32,052 708,660 95.5 27,158 735,818 65,826 801,644 28 661,987 29, 500 691, 487 95. 7 41,329- 732,816 65,394 798,210 Apr. 4 628, 697 25,572 654,269 96.1 55,612 709,881 66,179 776,060 11 692,682 31,507 724,189 95. 6 57,017 .781,206 70,850 852,056 18 671,695 28,744 700,439 95.9 54,730 755,169 70,827 825,996 25 685,022 24,045 709,067 96.6 46,903 755,970 70,126 826,096 May 2 678,623 22,028 700,651 96. 8 47. 311 747,962 70,658 818,620 9 . . 741,711 20,174 761,885 97.4 43,737 805,622 76,026 881,648 16 792,953 32,618 825,571 96.0 42,691 868,262 76.713 944,975 23 708,974 23,422 732,396 96.8 44,424 776,820 69,639 846,459 29 703,252 26,677 729,929 96.3 44.853 774,782 69,834 844,616 June 6 634,661 38,949 673,610 94.2 51J779 725,389 67,492 792,881 13 630,112 30,644 660,756 95.4 71,992 732,748 67,628 800,376 20 584,513 39,782 624,295 93.6 80,948 705,243 64,818 770,061 27 567,632 53,485 621,117 91.4 100,822 721,939 65,253 787,192 July 3 . .. 674,449 65,674 740,123 91.1 113,047 853,170 58,684 911,854 11 742,901 62,342 805,243 92.3 119,363 924,606 60,371 984,977 18 fi67,802 61,775 729,577 91.5 91,563 821,140 59,086 880,226 25 . . .. 649,147 68,746 717,893 90.4 91,497 809', 390 60,309 869,699 Aug. 1 644,096 58,120 702,216 91.7 98,002 800,218 62,887 863,105 8 641,566 695,191 92.3 106,980 802,171 64,498 866,669 15 . . 615,433 49 ^ 853 665,286 92.5 111,654 776,940 77,951 854,891 22 619,361 46,978 666,339 92.9 105,843 772,182 66,477 838,659 29 656,305 43,891 70:>, 196 93.7 94,288 794,484 67,811 862,295 Sept. 1 5 2 6 6 7 1 2 1 , , 0 4 7 4 0 2 5 4 2 9 , ,6 7 9 9 2 1 6 7 6 2 1 4 , , 1 8 3 6 4 1 9 9 2 2 . . 5 7 7 7 0 1 , , 9 1 5 7 5 7 7 7 3 9 2 6 , , 0 0 8 3 9 8 1 6 9 8 4 , , 6 0 4 5 0 9 8 8 6 2 4 6 , , 6 1 7 4 8 8 2 19 6 6 4 1 8 7 3 J ,0 8 5 3 3 7 4 4 5 7 , ,7 5 0 3 7 9 6 5 6 2 5 8 J .5 5 9 4 2 4 9 9 2 1 . . 8 4 7 7 6 3 , , 4 5 | 2 0 1 1 6 7 0 4 2 1 , , 1 9 1 4 3 5 1 6 3 4 2 , , 8 0 1 9 6 3 8 7 1 3 6 4 , , 7 2 6 0 1 6 Oct. 3 674 010 72,578 746,588 90.3 87,682 834,270 70,778 905,048 10 697,763 104,877 802,640 86.9 81,400 883,040 71,078 954,118 2 17 4 . ... 6 6 9 7 8 5 , , 6 3 5 ?6 3 J 1 10 1 5 6 , , 0 6 8 6 3 8 7 8 8 1 0 5 , , 4 3 1 2 9 1 8 8 6 5 . . 5 7 I 9 8 7 5 , , 9 3 2 1 5 5 9 8 0 7 0 8 , , 6 3 3 4 6 4 7 74 3 , , 7 7 8 7 0 2 9 9 7 5 4 3 , , 4 1 0 2 8 4 Mov. 31 7 7 0 9 2 5 , ,2 1 1 4 2 2 1 1 0 3 9 0 , , 1 88 3 0 9 9 8 0 3 4 3 , ,0 3 2 5 2 1 8 8 4 7 . . 3 9 i | 5 8 4 5 , , 3 3 2 7 3 3 9 9 1 5 8 8 , , 3 6 9 7 5 4 7 7 6 6, , 0 0 1 0 5 0 1, 9 0 9 3 4 4 , , 3 6 9 8 5 9 14 721,344 98,759 820,103 88.0 | 77,896 897,999 76,519 974,518 701 956 88,855 790,811 88.8 | 86,379 877.190 76,871 954,061 28 753,834 ! 107,068 860,902 87.5 ! 97,021 957,923 78,991 1,036,914 Digitized fo D r e F c. RA2 1 1 6 2 5 9 SER 6 6 5 5 5 6 8 1 4 7 4 5 , , , 5 5 0 4 8 1 3 0 8 2 5 1 : 2 1 1 1 0 4 4 1 3 4 3 9 , , , , 6 5 9 3 3 0 2 4 7 6 4 2 6 7 7 7 5 8 8 9 8 6 8 9 , , , . 5 3 8 1 7 2 5 9 2 5 4 4 7 8 7 7 1 2 8 4 . . . . 9 7 2 2 ! ! : ' 1 1 1 1 4 9 7 3 7 1 1 9 , , . , ' 8 3 3 0 6 1 8 3 5 2 2 0 9 8 9 9 4 7 3 1 6 9 8 7 , , , , 3 7 5 9 5 1 0 5 5 9 6 4 6 6 9 7 9 8 8 6 , , . . 4 8 6 7 6 0 5 1 1 0 4 4 ! I 1 1 , , 9 9 0 0 3 9 4 1 5 6 5 8 , , , , 4 8 7 1 3 1 6 5 3 6 4 0 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2—NEW YORK. 329 EXHIBIT B.—Movement of gold and cash reserves, Federal Reserve note and net deposit liabilities, etc, Federal Reserve Bank of New York. [In thousands of dollars.] Federal Date. res G e o rv ld es. T ca o s t h al a R n c o t e u t s e a e s l r v c i i e n r-dep N o e s t its. (3+4) p R e e a r s g c e e e , r n i v t e culation. Jan. 3. 686,208 734,896 724,932 795,455 1,520,387 48.3 10, 617,160 670,308 691,455 747,131 1,438,586 46.6 17. 588,365 640,515 665,688 759,157 1,424,845 45.0 24. 592,552 644,321 650,587 771,261 1,421,848 45.3 31. 568,367 621,297 647,913 772,464 1,420,377 43.7 Feb. 7. 625,547 677,213 650,046 751,587 1,401,633 48.3 14. 568,670 620,327 664,613 765,496 1,430', 109 43.4 20. 588,156 64 •"», 463 666,858 745,635 1,412,493 45.3 28. 588,288 639,268 677.619 776,240 1,453,859 44.0 Mar. 7. 596,479 647,494 689', 212 787,777 1,476,989 43.8 14. 649,122 701,213 710,002 786,270 1,496,272 46.9 21. 728,407 780,836 715,569 789,168 1,504,737 51.9 28. 735,392 788,481 723,160 780,338 1,503,498 52.4 Apr. 4. 779,865 832,649 736,433 793,240 1,529,673 54.4 11. 697,747 751,406 738,128 786,894 1,525,022 49.3 18. 734,509 787,011 738.169 796,002 1,534,171 51.3 25. 747,072 801,611 738,812 808,476 1,547,288 51.8 * May 2. 756,684 80S, 905 741,385 805,298 1,546,683 52.3 9. 700,700 752,070 751,273 800,989 1,552,262 48.4 16. 649,596 702,275 742,067 822,557 1,564,624 44.9 23. 744,924 790,636 735,462 825,936 1,561,398 51.0 29. 751,488 802,172 742,390 822,577 1,564,967 51.3 June 6. 766,149 818,039 736,674 792,185 1,528,859 53.5 J A S u e u l p g y t . . 2 2 2 2 2 1 1 1 1 3 5 1 7 2 9 5 0 8 8 1 5 3 . . . . . . . . . . . . . 6 6 6 6 6 6 5 5 5 5 7 7 7 8 4 4 9 5 1 6 1 5 8 2 7 3 2 5 2 6 6 4 2 5 7 2 7 1 7 ^ , , , , , , , , , , , , 9 8 1 0 1 7 3 1 5 4 3 5 9 3 3 9 4 7 9 4 6 0 5 4 1 8 0 6 5 9 4 4 4 2 3 7 6 5 2 6 6 6 6 6 8 6 6 7 5 7 8 7 1 6 0 6 3 9 8 3 7 0 4 2 8 4 2 6 7 1 3 9 7 4 6 5 3 9 , , , , , , , , , , , , , 4 2 5 6 7 2 8 0 1 3 5 3 1 1 7 1 5 7 9 8 2 7 0 2 6 8 3 0 9 9 4 0 5 8 1 1 3 5 4 7 7 7 7 7 7 7 7 7 7 7 7 7 4 5 4 4 4 5 4 5 6 3 3 3 3 9 8 5 5 8 1 2 2 2 7 9 5 6 , , , , , , , , . , . , , 9 7 9 7 9 2 9 7 1 4 1 2 2 8 8 7 8 1 9 1 2 3 6 6 2 8 0 0 5 3 5 4 8 3 7 5 6 6 8 6 6 8 8 5 7 8 5 7 7 7 7 7 2 4 9 1 0 9 0 7 3 6 1 7 7 0 3 0 4 8 0 0 7 9 0 3 4 0 , , , , , , , , , , , , , 7 9 7 2 0 5 3 6 0 1 4 8 2 2 4 5 4 5 0 0 3 6 0 1 4 6 9 7 7 6 2 2 4 8 4 2 6 4 3 1 1 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , , , 5 4 3 3 3 5 5 3 5 5 4 5 5 1 9 7 4 6 3 4 3 6 5 5 0 0 1 9 6 8 2 9 3 7 5 9 6 3 6 , , , , , , , , , , , , , 6 7 5 7 0 7 8 4 4 6 1 5 0 1 7 4 2 1 6 3 2 3 4 5 4 6 7 0 0 2 2 2 2 2 9 2 1 4 1 4 4 4 4 4 4 4 5 4 4 4 5 4 5 4 7 4 2 6 9 3 6 5 5 4 5 4 2 . . . . . . . . . . . . . . 0 6 5 7 0 0 9 3 5 1 3 1 5 4 12. 592,478 643,875 752,893 615,945 1,368,838 51.6 19. 622,8S6 674,216 747,239 558,271 1,305,510 49.7 26. 640,130 690,902 753,135 636,108 1,389,243 46.3 Oct. 3. 633,955 686,215 761,705 720,991 1,482,696 42.0 10. 556,746 610,291 759,830 694,009 1,453,839 41.2 17. 552,497 605,871 758,191 714,130 1,472,321 44.1 24. 613,344 663,929 750,809 754,133 1.504,942 41.6 31. 575,979 625,606 750,715 754,631 I', 505,346 40.2 Nov. 7. 568,105 618,135 763,700 772,241 1,535,941 43.7 14. 615,815 665,565 755,745 765,963 1,521,708 45.0 21. 632,927 683,192 758,797 757,926 1,516,723 41.9 28. 610,953 660,539 767,398 808,095 1,575,493 42.4 Dec. 5. 590,905 641,012 774,971 738,430 1,513,401 41.3 12. 577,407 626,910 778.170 740,880 1,519,050 44.6 19. 608,107 654,376 806,615 660,213 1,466,828 40.0 26. 570,438 616,040 824,944 714,874 1,539,818 1 Ratio of cash reserves to net deposits Federal Reserve note liabilities combined. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. FEDERALRESERVE BANK OF NEW YORK MOVEMENT OF EARNING ASSETS DURING CALENDAR YEAR 1919. 3I So 200 too too • *' 0 unn WSTATEySSEC UES. 200 m 200 100 mm too 0 ^^ o ACCEPTANCESB dmHT. 100 CO 80 80 60 60 40 20 20 0 0 PERCEISrAOE OF WAR PAPER TO TOTAL DISCOUNTS. (00O\ tooo 300 aoo POO TOTAL BILLS DISCOUNTED "D; AMD WAR PA PER;W". 1200 1200 1100 1100 TOTAL EARtWiG ASSETS. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2—NEW YORK. 331 FEDERALRESERVE BANK OF NEW YORK i NET DEPOSIT LIABILITY, F.R. NOTE CIRCULATION, i CASHRESERVES,Am>RE$ERVERATIO.I9l9. 70 70 60 60 50 SO y V 40 4O 30 30 20 20 10 10 0 O RESERVE RATIO, (PERCENTAGE OF C+L). F.R. nOTECIRCULAT/O/1. 1800 1800 1600 1600 1400 1400 I2OO 1OOO ft, ANPTOTAL RESERVES, "C. JAM. FEB. MCH. APRL MAY JUtit JULY AUG. SEPT OCT. IHOY. DEC. 178983—20 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 ANNUAL REPOBT OF THE FEDERAL RESERVE BOARD. The statement of condition of the Federal Reserve Bank of New York as of December 31, 1919, compared with that for December 31, 1918, is as follows: EXHIBIT C.—Statement of condition. Dec. 31, 1919. Dec. 31, 1918. RESOURCES. Reserves: Gold with Federal Reserve agent $306,756,215.00 $274,392,165.00 Gold redemption fund for Federal Reserve notes. 25!000,000.00 25,000,000.00 Gold settlement fund U,976,859. 68 66,790,455.76 Gold bullion 9L597,931.24 79,101,340.83 G old coin and certificates 62,.635,827.49 179,674,640.70 Gold with foreign agencies 481194,795.30 legal-tender notes 770,842. 00 43,038,200.00 Silver certificates and coin , 422,808. 50 4,531,976.85 Total reserves. 595,355,279. 21 672.528,785.14 Loans and discounts: Bills discounted for member banks 790,803,288. 24 697,341,455.69 Acceptances purchased 202,902,609.54 77,576,632.94 United States bonds 1,30(5,800.00 1,447,700.00 United States one-year Treasury notes 521,000.00 United States certificates of indebtedness 8,445,500. 00 93,374,500.00 United States securities held to secure Federal Reserve Banknotes. 59,276,000.00 34,955,000.00 Total investments.. 1,062,734,197.78 905,216,288. 63 Other resources: Federal Reserve notes and other cash 132,138,895. 83 97,048,219.95 Federal Reserve Bank notes 3,527,000.00 751,000.00 Redemption fund Federal Reserve Bank notes 2,900,000.00 1,689,250.00 Items in process of collection 194,382,544.39 145,736,177.53 Exchanges for clearing house and sundry cash items 54,532,017.18 36,401,491.78 Due from foreign banks *. 1,141,326.31 6,770,374.11 Interest accrued on United States bonds 543,500.33 172,87K. 27 Deferred charges and prepaid expenses 164,525.49 150,194. 29 Advances made for Treasury United States account expenses L iberty loan and war savings committee 977,835. 29 3,023,724.56 Real estate 3,094,050.00 2,317,692.39 Total other resources. 393,401,694.82 294,061,002. 88 Total resources 2,051,491,171.81 1,871,806,076.65 Capital: Capital paid in. 22,390,750.00 20,820,100. 00 Surplus". 45,081,932.63 8,322.040.00 Total capital fund. 67,472,682.63 29,142,140.00 Deposits: Due to United States Government 5,849,025.28 5,705,629.16 Due to foreign G overnments and banks 27,569,776.45 95,976,172.85 Due to member banks—reserve balances 755.951,452.59 705,062,061.27 Due to member banks—uncollected funds 88:568,032.65 72,173,899.90 Due to nonmember banks, deposit account 11]655,844.36 5,382,207.29 O D D f u u f e e ic t e t o o r s o o ' t t c h h h e e e r r c k F F s e e d d o e e u r r t a a s l l t a R R n e e d s s i e e n r r g v v e e B B a a n n k k s s — — - c u o n l c le o c ll t e ed c te f d u n f d u s nds 72 6 7 . ; , 3 9 1 3 6 7 4 7 0 , , , 6 0 3 1 7 5 5 9 0 . . . 5 2 4 2 8 4 78 6 4 , , , 9 9 9 3 8 9 4 6 8 , , , 4 9 1 2 1 3 5 9 7 . . . 2 0 4 6 4 1 Gross deposits.. 976,066,176.57 975,219,452.18 Notes: Federal Reserve notes outstanding 939,715,955. 00 819,015,835.00 Federal Reserve Bank notes outstanding-. 58,200,000.00 33,785,000.00 Total. 997,915,955. 00 852,800,835.00 Other liabilities: Depreciation reserve account 526,621.35 205,880.00 General reserve account 822,682. 42 299,375.00 Unearned discount and interest 2,737,510.26 1,308,769.90 Participation certificates Liberty loan bonds 20,130.00 34,410.00 Reserve franchise tax 12,795,214. 57 Due to United States Government as franchise tax 2,703,893.63 All other liabilities 3,225,519.95 Total other liabilities.. 10,036357.61 14,643,649.47 Total liabilities 2,051,491 171.81 1,871,806,076.65 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3—PHILADELPHIA. R. L. AUSTIN, Chairman and Federal Reserve Agent. As was to be anticipated from the reports made from time to time as to the activity of business, the operations of the Federal Reserve Bank of Philadelphia during the year 1919 were very much larger than for the previous year. GENERAL BUSINESS CONDITIONS. At the opening of the year the business outlook was uncertain and operations were still dominated by conditions incident to the ending of the World War. Cancellations of Government contracts and civilian orders also had a depressing effect. The inability of buyers and sellers to agree on prices resulted in a decrease in the volume of business and the appearance of some unemployment which lasted for three or four months, but at the end of the year the majority of the business concerns of the district report orders on hand far in excess of the capacity to fill them. Business conditions generally, as far as demand and supply are concerned, are good almost beyond precedent. Skilled workers are scarce, and the disinclination of operatives to do a full day's work is curtailing production. Prices of raw materials have kept pace with the extremely high prices demanded for manufactured goods, and the amount of capital required to conduct business has greatly increased, making necessary much larger lines of credit. EARNINGS AND EXPENSES. Net earnings of the last fiscal year have been extraordinarily large. Total earnings show unusual increases, and total expenses have consumed only 21 per cent of them, as compared with 25 per cent in both 1918 and 1917. Total earnings for 1919 were $8,609,000 and current expenses were $1,775,000, leaving net earnings of $6,834,000. The net earnings were 89 per cent of the average capital stock for the year, as compared to 46 per cent in 1918 and 12 per cent in 1.917. After the deduction of the reserve for depreciation on United States securities and other sundry purposes, the net amount available for dividends and surplus was $6,6 9,000. Dividends at the rate of 6 per cent were paid for the year, and $6,196,000 was transferred to surplus fund, bringing the total of that fund up to $8,80, ,000, or approximately 111 per cent of the paid-in capital stock at the end of the year. Exhibit C shows comparative statements of condition at the ends of the last three years. In viewing the earnings for the year, it should be borne in mind that a large part of the lending power of the bank is derived from its noteissuing privilege, a function conferred by the Government. Had its 333 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. power to extend credit depended entirely upon its deposits and capital, the bank would have been of comparatively little aid to the business community, but through its note issues, which averaged $212,000,000 for the year and were approximately twice the average deposits of member banks, it was able to serve the community as it did. RESERVE POSITION. The reserve ratio of this bank hovered between 40 and 45 per cent all the year, the higher percentages being prevalent early in the year. The cash reserve in 1919 averaged approximately $130,000,000, as compared with $150,000,000 in 1918. Federal reserve note liabilities held fairly steady at levels considerably in excess of the average figures for 1918, and deposit liabilities were also larger. The demands on the bank for loans and discounts to carry the large amount of subscriptions to Government bonds, notes and certificates received from this district, so reduced its reserve that it was compelled to rediscount constantly throughout the year. Exhibit B gives weekly figures showing items of interest in connection with the reserve position. An illustrative chart shows the reserve position during the past year. DISCOUNT RATES. The discount rates established early in 1918 were continued in force until November 6, 1919. In April of this year a rate was quoted on collateral notes of member banks and rediscounts secured by bonds of the War Finance Corporation. This rate was set at 1 per cent above the rate prevailing on commercial paper of the same maturity, as required by the act. On November 6 a schedule of rates was put into effect which, in the main, removed the differential in favor of collateral notes of member banks and paper of short maturities. Further advances were made on December 16, at which time the rates on loans secured by Government securities (with the exception of certificates of indebtedness) were advanced to the level of the rates on commercial paper. DISCOUNT OPERATIONS. The discount operations were influenced chiefly by the fiscal operations of the Treasury during the year. Including the Victory loan and the various issues of loan and tax certificates there was placed in the Third District more than $1,000,000,000 of Government securities during the year. The banks not only bought extensively of the certificates themselves, but they encouraged other purchasers, and particularly so in the case of the Victory loan. They became well loaned up, and in order to meet commercial demands they made free use of the rediscounting privilege. The applications for loans received were far larger than in 1918 and increased steadily as the year progressed. Note obligations made up the bulk of the investments. Very little commercial paper was offered for rediscount to maturity till the last months of the year, the banks preferring to make use of the so-called ^rediscount under agreement to repurchase/7 whereby they could secure advances for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3—PHILADELPHIA. 335 15 days at the 15-day rate. The extensive use that was made of the short-term borrowing served to swell the totals of discount operations. The average daily earning assets of the bank show steady advances up to the end of the year. In December the average was $243 809 000 ? 7 ; as compared with $197,818,000 in December, 1918. The following table shows the average daily holdings of the several classes of earning assets for each month and for the year 1919, while their movement by weeks during the year is shown in Exhibit A. Earning assets—Average daily amount. Total. Bills dis- United Bills bought. States securicounted. ties. 1918 January $177,059,450 $2,872,846 $11,812,254 $191,744,551 i $56,592,574 February 185,697,841 2,232,553 12,631,828 200,562,223 53,576,334 March i 187,159,834 1,919,778 15,524,916 204,604,528 58,196,659 Appril 188,689,151 1,403,379 18,347,500 208,440,030 63,680,782 May ,, 907,967 20,312,496 213,595,405 69,155,715 June 192,374,941 940,800 23,215,560 216,680,799 77,315,535 July 192,524,439 702,571 25,307,774 214,600,141 88,626,133 August 188,589,796 689,749 27,337,016 221,288,397 102,304,319 September.. 193,261,631 843,225 29,304,400 226,759,699 114,640,100 October 196,612,073 632,484 30,431,803 235,140,228 138,135,408 November.. 204,075,940 1,394,053 31,663,083 238,126,494 189,486,768 December.. 205,069,357 4,442,333 32,541,238 243,809,469 197,818,495 206,825,891 Average, 1919 193,194,965 1,581,247 23,262,740 218,038,952 Average, 1918 75,556,041 18,375,123 7,135,005 101,067,237 1 Small amount of municipal warrants included. The earnings from discounted paper and open-market purchases, including United States securities, were $8,550,000, as compared with $4,230,000 in 1918, though the average rate of return was only 3.94 per cent as compared to 4.19 per cent in 1918. United States securities afforded an average rate of return of only 2.13 per cent as compared with 3.27 per cent in 1918, but this is accounted for by the large proportion of one-year notes of the United States, yielding 2 per cent, which were held to secure Federal Reserve bank notes. Last year United States bonds and certificates formed a considerable percentage of the total amount of United States securities held. BILLS DISCOUNTED. Total bills discounted during the year amounted to $10,736,435,000; in 1918 this total was $1,857,642,000. The number of banks accommodated this year was 494. Notes secured by United States Government obligations formed a very large proportion of the investments of the bank. On the last Friday of December the ratio of paper secured in this manner to total discounted paper was 86 per cent of the total paper under discount, as compared with 89 per cent on the corresponding Friday in 1918. The increase in discount rates on short-term paper early in November caused many of the banks to decrease their presentations of collateral notes and substitute in their stead their customers' paper secured in like manner. Notes secured by War Finance Corporation bonds were discounted in small amount. Until the end of the year the commercial paper presented was inconsiderable, but the increased rates on Government secured paper instituted in December resulted in larger offerings. Bankers' and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

336 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. trade acceptances played an unimportant part in the discount operations of the year and did not form a total at all comparable to that of 1918. Due to the industrial predominance of the district, agricultural paper was offered only in small amounts. Total discounted paper held at the end of the year was $209,854,000; at the end of 1918 the figure was $178,819,000, thus indicating an increase of 17 per cent during the year. OPEN-MARKET OPERATIONS. The open-market operations of this bank during the past fiscal year Were practically negligible. The demands on its resources through the discount of paper offered by member banks precluded the investment of large sums in paper to be purchased elsewhere. Bankers' acceptances in foreign transactions formed the major portion of such investments. Dollar exchange bills were bought only in the first month. Total operations under this heading for the year were $14,048,000; in 1918 they were $120,008,000. FEDERAL RESERVE NOTES. The circulation of Federal Reserve notes fell off very noticeably during the first few months of the year and attained a low point of $200,498,000 on June 21. Exhibit B shows the general trend during the past year. The decrease in the beginning of 1919 can be traced to the falling off in business. The increased activity which began early in the year was reflected in larger circulation in August, and a steady increase in such issues continued until almost the end of the year. The maximum amount of notes ($241,348,000) was in circulation on December 24, as compared to the former high level of $235,586,000 on December 26, 1918. Immediately after Christmas the notes began to return in large amounts. Notes of the smaller denominations have been in greatest demand, with $10 and $20 notes forming the bulk of those issued to the Federal Reserve Bank. There has been very little call for notes of higher denominations than $100, though a reserve supply is maintained to care for any need that may arise. FEDERAL RESERVE BANK NOTES. Demand for notes of small denominations continued throughout the year, and was especially urgent in the month of December, due to the great activity in retail trade. This demand was met by the issuance of Federal Reserve bank notes in place of silver certificates which were retired under the Pittman Act. The amount of notes in actual circulation increased from $8,926,000 at the end of 1918 to $28,791,000 at the end of 1919, or 223 per cent. Melting of silver dollars authorized by the Pittman Act was discontinued in May. COUPON DEPARTMENT. The work of the coupon department has been more than triple that of 1918 in the number of items handled and their total amounts. Fourteen persons are now employed in this division. The number of items handled has run as high as 111,000 a day, and the amount has Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3 PHILADELPHIA. 337 been in excess of $1,700,000. The distribution of the maturities of Government coupons over the various months of the year has created a steady demand on the services of this department. The total number of items handled during 1919 was 8,258,108, as compared to 2,728,361 in 1918. The value of these coupons during the last fiscal year was $47,063,622.79, in comparison to $11,735,022.64 in 1918. COLLECTION DEPARTMENT. The work of the collection department was much larger than the previous year and increased during the year to a high point in December. No charges are made on items except the actual cost of postage, insurance, and registration on maturing coupons, bonds, and other securities attached to drafts sent for collection and 15 cents on items returned unpaid to member banks. GOLD-SETTLEMENT FUND. The operations through the gold-settlement fund were much larger than in 1918, record figures being reached in December of this year. Payments received through this fund totaled $7,630,713,000 in comparison to $5,440,137,000 in 1918, and the amounts paid to other Federal Reserve Banks were $7,636,447,000 as compared to $5,434,826,000 in the previous year. TRANSIT AND CLEARINGS. The transit department reports operations for the year on a much larger scale than in 1918. In dollars this increase is not so noticeable, the total value of all items handled this year being $13,843,000,000, as compared with $11,292,000,000 in 1918. In point of number of items handled, however, very large increases are reported, the number of items passing through the department being 34,886,768 as compared with 17,133,761 in 1918. This points to a considerable decline in the average amount of each item, and, as the tables which follow demonstrate, this is particularly true of such items as were drawn on Philadelphia banks. The department handled as many as 156,000 items in a day. The campaign to extend the par system to all banks in the district was rewarded with complete success. At the beginning of the year items were received without exchange charges by all member banks and all nonmember banks with the exception of 115. Continual efforts were made to have these 115 institutions remit at par, and by July 1 the number had been reduced to 46. Shortly before this time it was decided that, beginning July 1, this bank would receive and collect all items at par, collections on institutions making exchange charges being handled through the express companies. Further efforts on the part of this bank resulted in the bringing of all institutions into the collection system. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

338 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. OFFICERS AND DIRECTORS. Richard J;. Austin, chairman and Federal Reserve agent; Henry B. Thompson, deputy chairman; E. Pusey Passmore, governor; Edwin S. Stuart, deputy governor; Willliam H. Hutt, deputy governor.] Class. Name. Residence. Term expires Group 1 Joseph Wayne, jr., president Girard National Philadelphia, Pa.. Dec. 31,1920 Bank, Philadelphia, Pa. Group 2 Francis Douglas, cashier First National Bank, Wilkes-Barre, Pa. Dec. 31,1921 Wilkes-Barre, Pa. Group 3 M. J. Murphy, care of A. B. Leach & Co., bankers, Clarks Green, Pa.. Dec. 31,1919 New York City. [Group 1 Alba Johnson, vice president Southwark Foundry Rosemont, Pa Do. & Machine Co., Philadelphia, Pa. B | Group 2 Edwin S. Stuart, merchant, Philadelphia, Pa Philadelphia, Pa.. Dec. 31,1920 Charles K. Haddon, vice president Victor Talking Camden, N. J lGroup3 Machine Co., Camden ,N. J. Dec. 31,1921 {Richard L. Austin Philadelphia, Pa.... Dec. 31,1920 Henry B. Thompson, president U. S. Finishing Wilmington, Del.... Co., New York City. Dec. 31,1919 Charles C. Harrison Philadelphia, Pa.... Dec. 31,1921 Mr. R. M. Miller, jr., cashier of the Farmers & Mechanics National Bank of Phoenixville, Pa., and Mr. Frank W. Labold, of this bank, were elected assistant cashiers on May 1, and Mr. Samuel Earle, paying teller of the bank, was elected an assistant cashier on December 18. Mr. R. D. Stockton was elected comptroller on January 2 and assumed office on February 1. The resignation of Mr. Thomas Gamon, jr., an assistant cashier of the bank, was presented to the board of directors at the meeting of December 4. At the meeting of the board of directors on December 31, the officers were confirmed in their appointments for the coming year and Mr. Levi Rue, president of the Philadelphia National Bank, was again selected to represent the Third Federal Reserve District on the Federal Advisory Council. The terms of office of Mr. Michael J. Murphy, representing the group 3 banks as a class A director, and of Mr. Alba B. Johnson, representing the group 1 banks as a class B director, expired on December 31, and they were reelected for terms of three years from January 1, 1920. The increase in the operations of the bank has necessitated many additions to the clerical force. At the end of this year there were 627 employees and 12 officers, as compared to 419 employees and 11 officers at the end of 1918. The increased operations of the bank not only resulted in a larger personnel, but an increased need for space as well. About 75 per cent of the available room in its building is occupied by the bank. The contemplated construction of a new vault in the basement of the main banking building made necessary the rental of the first floor of an adjoining building. The comfort and convenience of the clerical force has been considered as much as possible, and on July 8 a cafeteria was opened on the premises of the bank with complete equipment furnished by the bank. Meals are furnished at cost; its service has been satisfactory and has proved a physical and financial benefit to those connected with the institution. In connection with the Federal Reserve Club, a monthly magazine has been issued, and educational courses are being prepared. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3—PHILADELPHIA. 339 THE THIRD FEDERAL RESERVE DISTRICT. The boundaries of the district remain unchanged and include all of Delaware, that part of New Jersey south of the northern boundaries of Mercer, Burlington, and Ocean Counties, and that part of Pennsylvania east of the western boundaries of McKean, Elk, Clearfield, Cambria, and Bedford Counties. The total area is 36,844 square miles, making this the smallest of the Federal Reserve districts territorially. The population at the last census was 6,632,611, or 6.4 per cent of the total population of the country at that time. At the end of the fiscal year our records show that there were 640 national banks and 453 State institutions, 38 of the latter class being members of this Federal Reserve Bank. The total net additions since January 1 to the list of national banks are 13, two of which are accounted for by the conversion of State banks into national banks. The total resources of all banks and trust companies in the district on November 15 were $3,011,090,000, of which the national banks totaled $1,741,542,000, or 58 per cent. Total resources in 1918 were $2,702,193,000, indicating an increase of 11 per cent during 1919. The table given below analyzes the figures compiled in greater detail by States: Banking resources—District No. 3. [000 omitted.] Capital. Surplus. p v U r i o d n f e d it d i s - . In d d ep iv o i s d i u ts a . l de B p a o n s k its. T so o u ta rc l e r s e . - Pennsvlvania: National banks (546) $72,202 $104,433 $28,625 $966,054 $112,398 $1,583,773 State institutions (371) 80,619 119,354 33,418 806', 804 8,727 1,078,833 Total (917) 152, 821 223,787 62,043 1,772,858 121,125 2,662,606 New Jersey: National banks (73) 6, 970 7,419 3,706 109,738 1,640 137,256 State institutions (45) 5,766 6,362 1,943 90,964 895 111,591 Total (118) 12,736 13,781 5,649 200,702 2,535 248,847 Delaware: National banks (19) 1,429 1,532 913 15, 245 605 20,513 State institutions (33) 4,721 5,362 2,447 68,750 1,058 79,124 Total (52) 6,150 6,894 3,360 83,995 1,663 99,637 Total: National banks (638) 80,601 113,384 33,244 1,091,037 114,643 1,741,542 State institutions (449) 91,106 131,078 37,808 966,518 10,680 1,269,548 Total (1,087) 171, 707 244,462 71,052 2,057,555 125,323 3,011,090 The capital and surplus of the member banks increased somewhat during the year. This increase amounted to $10,682,000 in the case of national banks in the district between the dates of August 31, 1918, and September 12, 1919. The borrowings of national banks on their bills payable increased very largely, and the percentage of these borrowings from the Federal Reserve Bank to total borrowings on such paper was 99 per cent in the fall of 1919, as compared to 95 per cent in the previous year. Member banks in Philadelphia, Scranton, Camden, and Wilmington for the past two years have been reporting to this bank weekly, the principal resource and liability items appearing in their statements. The figures given are for the last Friday in each month of 1918 and 1919. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Member banks in Philadelphia, Camden, Scranton, and Wilmington. [000 omitted.] Loans ! o U s S e w t t n c i a n e u i t t e s e r e d i s d - . s U s S e e t c n t i b c a u e i u y t t r s e e r e . i s d d - i m n o lo a v A e t n a h e n l n d e s l t s s r t- . i m n T lo a v e o n a n e t n d s a t s s t l - . R R F B w e e e a s s d i e e n e t r r h k r v v a . e e l v C a i a u n s l h t. d d e e p N m o e a s t n it d s. p T o d i s m e i - t e s. p m G o e d r s e o e n i n - v t - s t - . r b N b e i a e p n u n r o g m k r o . t s - f - 1918. January $34,882 $25,560 $615, 270$675,712 $59,446 S22,490 $567,847 115,506$28,585 46 February 53,890 22,527 613,004 679,421 58,607 21,974 569.913 15,876 40,099 47 March 74,820 21,488 600,504! 696,812 53,562 19,771 566', 712 15,578 34,863 47 J D A J A O S N M u u e e p u c o n a l p c t y g r v y o e t e i u e e l b m m m s e t b r b b e e e r r r 1 1 1 1 8 9 7 6 7 1 5 0 1 9 7 7 6 6 4 3 6 4 , , , , , , , , , 6 5 4 6 4 1 4 4 0 3 0 5 3 2 6 2 1 1 3 4 9 4 7 9 6 5 4 1 1 1 3 3 4 4 4 2 7 6 5 4 5 1 2 8 5 0 0 7 , , , , , , , , , 5 5 8 0 6 2 7 2 2 7 4 9 4 1 4 9 1 7 1 3 1 9 8 5 6 3 8 6 6 6 6 6 6 6 6 6 0 0 2 1 3 2 1 3 2 9 1 0 9 3 0 1 0 1 , , , , , , , , , 3 9 6 5 7 0 1 9 7 7 4 1 2 5 9 3 2 9 1 1 1 9 2 0 0 8 4 I I [ 7 7 7 9 8 9 7 7 7 2 4 2 3 8 0 4 3 8 1 3 8 5 3 5 7 5 0 , , , , , , , , , 5 5 0 5 9 3 1 0 9 7 4 3 7 3 0 0 6 0 5 3 3 3 7 4 0 0 6 5 5 5 5 5 5 6 6 OP 0 8 4 5 5 7 3 8 - , , , , , , , , , 5 3 5 3 0 1 3 9 4 9 1 9 4 6 2 0 6 1 1 1 S 9 0 0 0 9 2 2 2 2 1 1 1 2 2 1 0 0 5 9 1 9 8 0 8 , , , , , , , , , 4 4 8 0 4 9 8 6 6 4 1 6 5 7 7 6 1 1 1 9 9 3 9 4 7 7 2 5 5 5 5 5 6 6 6 6 6 8 8 5 7 0 2 1 2 4 7 4 5 3 6 8 5 9 , , , , , , , , , 8 7 1 6 6 7 7 1 4 6 0 6 3 5 7 4 5 7 5 3 3 3 3 9 8 8 8 1 1 1 1 1 1 1 1 1 4 8 5 6 3 4 4 5 5 , , , , , , , , , 3 7 3 8 4 9 9 9 2 9 9 1 0 2 8 6 4 7 1 6 1 1 7 7 5 6 2 3 4 7 3 7 2 3 1 2 0 1 2 3 6 0 5 7 7 , , , , , , , , , 0 7 3 3 1 7 9 8 2 6 5 1 5 7 4 1 6 3 6 6 3 9 9 2 0 5 5 4 4 4 4 5 5 5 5 5 9 9 9 9 0 2 4 3 6 1919. January 153,235 147,639 622,872 923,746 64,774 19,012 632, 839 20,086 55, 088 56 February 177,735 145,429 599,581 922,545 67,036 19,705 638,823 21,354 45,747 56 March..: 179,870 142,292 623,256 945,413 61,527 19,515 653,426 22,300 38,963 56 April 177,769 144, 911 614, 232 936,912 67,363 19,293 654,734 22,016 27,276 56 May 189,440 165,047 642,082 996,569 65,490 18,278 651,349 20,634 62,338 56 June 125,065 176,968 649,120j 951,153 63,113 18,411 635,929 20,627 48, 818 56 July 105,101 172,910 645,401 923,816 65,187 17,184 646,191 21,3C3 26,564 56 August 119,014 165,804 665,248j 950,066 69,615 16,062 664,273 21,783 32, 213 56 September 123,Of8 161,534 675,998 960,630 74,574 16,550 663,812 22,122 54,732 56 October 103,182 153,211 685,688! 945,081 69,658 17,108 675,267 22,453 27,484 56 November 94,018 123, 930 I 919,816 60,354 18,333 666, 231 22,440 11,366 56 An analysis of the table discloses that the movements of the various classes of loans and investments reflect clearly the issuing of Government securities of various kinds. The peak of the United States securities owned was reached in May, 1919, while the high point in the loans secured by United States securities was reached in June. The reserves held with the Federal Reserve Bank averaged higher in 1919 than in 1918, but the amount of cash in vault was smaller. Deposits show a natural increase in keeping with the larger amounts of loans and investments. This table includes a larger number of banks in the year 1919 than in 1918, but the figures of the banks added to the list do not obscure the trends to any considerable extent. Toward the end of the period covered the banks reported their loans and investments in greater detail and these figures for December 26, 1919, are given below: Amount. Percent. United States bonds to secure circulation $11,097,000 1.2 Other United States bonds, including Liberty bonds 29,426,000 3.2 United States Victory notes , 12,283,000 1.3 United States certificates of indebtedness 55,836,000 6.1 Total United States securities owned 108,642,000 11.8 Loans secured by United States war obligations: (a) Liberty bonds 74,561,000 8.1 (b) Victory notes 26,992,000 3.0 (c) Certificates of indebtedness 858,000 .1 Loans secured by stocks and bonds other than United States securities. 207,032,000 22,6 All other loans and investments 498,123,000 54.4 Total loans and investments 915,351,000 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3—PHILADELPHIA. 341 Christmas savings funds have been conducted by many of the banks of the district. In response to a questionnaire sent out by this bank, returns were received from 75 to 80 per cent of the banking institutions, and their reports indicate Christmas savings fund deposits of $9,789,000 in 1919, as compared to $8,174,000 in 1918. Increases in regular savings accounts were reported also. FIDUCIARY POWERS. Some of the national banks of the district appreciate the advantages of exercising fiduciary powers. The applications of 48 banks, permitting them to exercise full fiduciary powers, were approved during the year. The total number of banks in the district exercising full powers is now 59, and in addition, 38 others had been granted partial powers under the act as originally passed. National banks possessing such powers are located in 72 cities and towns of the district. The following table shows their distribution by States: Full Partial powers. powers. Total. T* claw are 2 2 Now Jersey 10 5 15 Pennsylvania 47 31 78 Total . . 59 38 97 POWER TO ACCEPT UP TO 100 PER CENT. No additions were made to the list of banks authorized to accept up to 100 per cent of capital and surplus during the past fiscal year. The following banks, all of which are located in Philadelphia, possess this power: Bank of North America, First National Bank, Girard National Bank, Philadelphia National Bank, Corn Exchange National Bank, Fourth Street National Bank, Market Street National Bank, Tradesmens National Bank. STATE BANK MEMBERS. The pressure of other business has precluded the possibility of conducting an active campaign for the membership of State banks and trust companies during the last year. However, no opportunity has been neglected to bring to the attention of eligible nonmember banks the advantages of membership in the system. The number of institutions which were admitted during the year was 11, the names and resources being as follows: Bank name. Location. Admitted. res T o o u t r a c l es. Riverside Trust Co.. .• Riverside, N. J Jan. 3,1919 $2,039,889 Peoples Savings & Trust Co Hazleton, Pa Jan. 13,1919 2,933,058 T M Jn ilf io or n d B T a r n u k s i t n g C o & Trust Co MDuil foBrodi sD, Peal M M a a r r . . 2 2 7 8 , , 1 1 9 9 1 1 9 9 2 1 , ,0 1 7 7 7 3 , , 8 6 3 6 0 8 Berks County Trust Co Reading, Pa May 1,1919 3,917,503 Equitable Trust Co Atlantic City, N. J June 20,1919 3,166,688 Burlington City Loan & Trust Co Burlington, N. J June 25,1919 1,748,441 Bankers Trust Co Atlantic City, N. J July 11,1919 576,035 X/ewistown Trust Co Lewistown, Pa Sept. 27,1919 752,153 Orange Trust Co Huntingdon, Pa Oct. 7,1919 706,752 Schuylkill Haven Trust Co Schuylkill Haven, Pa Oct. 17,1919 1,307,027 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 ANNUAL. REPORT OF THE FEDERAL RESERVE BOARD. This list brings the number of State institutions which have entered the Federal Reserve System in this district up to 40, but, due to the conversion of the Bank of Commerce and the Drovers & Merchants Bank, both of Philadelphia, into national banks, the number now stands at 38. There are 270 eligible nonmember State institutions in the district, having total resources of approximately $668,000,000. The member State institutions represent 41 per cent of the total resources of all eligible member and nonmember State banks and trust companies. The table below furnishes pertinent data relative to member State institutions as of November 17, 1919: Member State institutions. Number 38 Capital $23, 225, 000 Surplus 47,102, 000 Undivided profits 8, 997, 877 Individual deposits 241, 650, 071 Bank deposits 7, 699, 936 Total resources 460, 980, 948 DEPARTMENT OF EXAMINATION. Examinations have been made in Delaware, New Jersey, and Pennsylvania in cooperation with the State banking departments, which have resulted in more efficient results being obtained to the consequent benefit of all interested. The examinations of State institutions by their own banking departments are recognized and accepted in applications for membership, but it frequently happens that the applicant State bank or trust company has not recently been examined. The reports received from the State banking department would not, therefore, reflect the institution's true conditions at the date of application. For this reason an independent examination has often been made by examiners of the Federal Reserve Bank. Every effort has been made to keep in close touch with the condition of all member banks and reports of examinations are very carefully analyzed and valuable statistical records are compiled. FISCAL AGENCY OPEEATIONS. As fiscal agent for the United States the activities of the Federal Reserve Bank were again brought conspicuously to the public attention. The year saw the sale of the last popular loan, and with it a dissolution of the great army of loan workers through whose energetic efforts the five Liberty loans were so successfully distributed. With the war over and the necessity for great popular campaigns ended, the function of conducting the sales of Government securities is again in sole charge of officers of the reserve bank. At the beginning of the year the activities of the Liberty loan committee, the war savings organization, and the certificate of indebtedness division were consolidated Within the district into the war loan organization. This organization had at its head a director with associate directors. In this way the fiscal operations were coordinated and made more effective. At the close of the Victory loan this organization automatically dissolved, and sales of certificates of indebtedness were handled directly by officers of this bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3—PHILADELPHIA. 343 FINAL PAYMENTS ON FOURTH LIBERTY LOAN. Final payments on the fourth Liberty loan were completed in January. According to the schedule of payments arranged by the Secretary of the Treasury two installments, aggregating 50 per cent, were due in that month. So many investors paid for their bonds in full during 1918, however, that at the end of that year payments approximated 88 per cent of the $598,768,650 allotted to this district. The remaining 12 per cent was paid in January without disturbance to the money market. VICTORY LIBERTY LOAN. The Victory Libert}^ loan was a complete success, though it was floated at a time when the country was relaxing from the strain of war. Subscriptions in this district amounted to $422,756,100 on a quota given the district by the Secretary of the Treasury of $375,000,000. The allotment to the district was $376,290,100. The banking institutions cooperated with the Federal Reserve Bank in every way, not only to insure the success of the loan, but also to secure the widest possible distribution of the notes. At the outset of the campaign the financial institutions of Philadelphia as a unit agreed to lend Victory loan subscribers 95 per cent of the face value of their subscriptions for 90 days at 4| per cent, being the coupon rate, with the privilege of renewing the loan for a similar period of 90 days at 4f- per cent interest. This offer of the banks was widely accepted. Details of the Victory Liberty loan follow: Popula- Total banking Apportiontion. ment. Subscription. Delaware 237,973 $90,769,857 $12,889,200 $13,807,650 New Jersey.. 666,775 210,214,658 29,850,400 33,368,850 Pennsylvania 3,793,211 1,023,308,193 145,309,800 167,097,400 Philadelphia. 1,800,000 1,074,488,676 186,209,450 208,482,200 Total... 6,497,959 2,398,781,384 374,258,850 422,756,100 Number of Per cent of Per capita Allotment. subscribers. s p u o b p s u cr la ib ti i o n n g. su t b i s o c n r . ip- Delaware $12,784,450 25,979 10.91 $58.00 New Jersey.. 30,479,200 93,096 13.96 50.00 Pennsylvania 158,435,100 512,683 13.52 44.00 Philadelphia. 174,591,350 350,903 19.49 116.00 Total... 376,290,100 15.12 65.00 SUMMARY OF LIBERTY LOANS. The results achieved in the Third Federal Reserve District in the five great war loans deserve recognition. The quotas assigned to this district on the five loans aggregated $1,515,000,000, aga,inst which total subscriptions were received of $1,996,142,750, or 132 per cent of the aggregate quota. Allotments to this district were $1,782,348,950. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. The relation of subscriptions to quotas in each of the loans is^ given herewith. Per cent of Quota. Subscription. su ti b o s n c r t i o pquota First loan $140,000,000 $232,309,250 165.9 Second loan 250,000,000 380,350,250 152.1 Third loan .. ... 250,000,000 361,963,500 144.7 Fourth loan 500,000,000 598, 763,650 119.7 Victory loan 375,000,000 422, 756,100 112.7 Total 1,515,000,000 1,998,142,750 131.7 CERTIFICATES OF INDEBTEDNESS. Sales of Treasury certificates of indebtedness continued at intervals throughout the year. Every issue was oversubscribed where a quota was assigned. Sales of all issues during the year aggregated $681,511,500. The first issue of certificates in anticipation of the Victory loan was dated December 5, 1918, and series of certificates were issued at fortnightly intervals until near the end of the campaign. After the Victory loan, due to the stronger financial position of the Treasury, flotations were made at less frequent intervals. No loan certificates were issued between May 1 and August 1, and no certificates of any kind were issued between September 15 and December 1. An analysis of the subscriptions of the 10 issues of certificates in anticipation of the Victory loan follows: Number Per cent of subscrib- total in Amount subing. district. scribed. National banks... 598 I 92.71 $272,140,000 Trust companies. 200 j 86.58 115,377,500 State banks 133 I 78.70 20,016,000 Savings banks 24 I 100.00 12,155,000 Total banks. 955 9.34 419,688,500 Individuals.. 38 646,000* Total sales of tax certificates with maturities extending into 1920 were $133,223,500. The amount of each maturity sold was as follows: March 15, $28,414,500; June 15, $50,222,500; September 15. $54,586,500. GOVERNMENT DEPOSITS. At the close of 1919 the total number of banvs designated as United States depositaries was 666, as compared to 647 at the end of 1918. Of the .$1,080,000,000 in securities handled during the year in connection with the securing of Government deposits municipal bonds formed 10 per cent of the total, foreign Government bonds 10 per cent, railroad and utility bonds 20 per cent, commercial paper 30 per cent, and war-time obligations of the United States 30 per cent. The Government deposits averaged about $66,000,000 during the year, with an average amount of collateral held to secure the same of $118,000,000. Custodians of collateral numbered 115 at the end of the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3—PHILADELPHIA. £45 WAR SAVINGS DIVISION. Sales of stamps and Treasury savings certificates fell off markedly a^ter the armistice was signed and the stimulus of war was removed. There was a smaller percentage of redemption, however. In 1918, a year of intensified selling, the sum of $73,000,000 worth of stamps was sold in this district and approximately 10 per cent of this total was redeemed at post offices during the year. In 1919, when sales were only $8,000,000, it is estimated that less than 2 per cent of the total sales were redeemed. Stamps have been sold to 1,000,000 persons, and it is estimated that there are now 2,000,000 stamp owners in this district. The average cost during 1919 was approximately 1.5 cents per dollar raised. Following the Victory loan and the dissolution of the war loan organization the direction of the savings movement was taken over by the Federal Reserve Bank and the work is now conducted as a departmental operation of the bank. Sales of war savings and thrift stamps by this bank during 1919 totaled $988,561 and of Treasury savings certificates $438,100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT A.—Movement of principal earning assets of the Federal Reserve Bank of Philadelphia during the calendar year 1919. [In thousands of dollars.] Discounted paper Total Date. s U S ec n t b a u i y t t r e e e d s d . c p o O a d u t p i n h s e - t e e r r . d (1+2.) P ( e 1 r - c 3 e ) n . t m i b n o B a o u r i p l k g l e s e h n t t . co b a d u i i n n s l - d l t s ed U s S e t n t i c a e i u t t s e e r . i s d - e a a T s r o s n t et i a s n l . g war ob- bought. ligations. Jan. 3 158,254 19,065 177,319 89.2 3,401 180,720 11,418 192,138 10 156,377 15,613 171,990 90.9 3,072 175,062 11,243 186,305 17 153,550 15,518 169,068 90.8 2,770 171,838 11,243 183,081 24 172,210 15,673 187,883 91.6 2,571 190,454 12,211 202,665 31 156,352 15,036 j171,388 91.2 2,133 173,521 12,185 185,706 Feb. 7 168,186 13,175 !181,361 92.7 2,153 183,514 12.165 195,679 14 177,622 14,291 I 191,913 92.6 2,274 194,187 12,665 206,852 20 177,360 12,168 189,528 93.6 2,116 191,644 12,665 204,309 28 176,990 13,081 190,071 93.1 1,987 192,058 13.166 205,224 Mar. 7 178,463 9,331 187,794 95.0 1,658 189,452 13,666 203,118 14 178,171 11,536 189,707 93.9 1,332 191,039 15,165 206,204 21.... 169,255 13,620 182.875 92.5 2,291 185,166 16,665 201,831 28 172,914 12,375 185,289 93.3 2,270 187,559 16,715 204,274 Apr. 4 169,249 13,182 182,431 92.7 3,192 185,623 17,741 203,364 11 174,204 13,186 187,390 93.0 1,021 188,411 17,666 206,077 18 166,448 14,688 181,136 91.9 914 182,050 18,665 200,715 25 182,169 9,501 191,670 95.0 826 192,496 18,661 211,157 May 2 180,939 11,759 192,698 93.9 691 193,389 19,645 213,034 9 178,113 12,240 190,353 93.6 930 191,283 20,075 211,358 16 182,468 13,408 195.876 93.2 922 196,798 20,075 216,873 23 170.315 12,378 182,693 93.2 918 183,611 21,075 204,686 29 183,577 13,012 196,589 93.4 1,113 197,702 21,075 218,777 June 6 160.810 13,900 174,710 92.0 972 175,682 27,065 202,747 13 191,277 14,389 205,666 93.0 969 206,635 22,070 228,705 20 176,588 18,254 194,842 90.6 864 195,706 23,066 218,772 27 173,957 17,229 191,186 91.5 860 192,046 23,248 215,294 July 3 170,753 17,852 188,605 91.0 711 189,316 24,236 213,552 11 173,697 15,679 189,376 91.7 631 190,007 25,231 215,238 18 165,015 19,557 184,572 89.4 759 185,331 25,178 210,509 AuM 2 : 5 ::::::::::::: 1 17 7 5 0 , , 3 3 4 6 9 6 1 1 9 5 , , 8 8 8 3 1 0 1 19 9 1 0 , , 1 2 7 4 9 7 8 9 9 2 . . 5 3 6 7 6 1 0 9 1 19 9 1 0 , , 8 9 3 6 9 6 2 2 6 6 , , 1 1 9 9 8 8 2 2 1 18 7 , , 0 1 3 6 7 4 180,934 14,715 195,649 92.5 623 196,272 27,248 223,520 15 176,779 16,044 192,823 91.6 673 193,496 27,190 220,686 22 180,285 i 17,192 197,477 91.3 812 398,289 27,2S7 225,576 29 180 872 ! 16,486 197,358 91.7 762 198,120 28,625 226,745 Sept. 5 175,974 16,830 192,804 91.3 843 193,647 28.566 222,213 12 179,199 15,985 195,184 91.8 1,061 196,245 28,616 224,861 19 173,229 21,528 194,757 88.9 811 195,568 30,054 225,622 26 180,151 21,705 201,856 89.2 735 202,591 29,567 232,158 Oct. 3 175,243 21,290 196,533 89.2 645 197,178 30,067 227,245 10 182,038 21,418 203,456 89.5 645 204.101 30,178 234,279 17 181,508 25,061 206,569 87.9 618 207,187 30.567 237,754 24 182,789 23,252 206,041 88.7 601 206,642 30,573 237,215 31 181,590 25,580 207,170 87.6 656 207,826 30,687 238,513 Nov. 7 186,560 23,415 209;975 88.8 887 210,862 30,600 241,462 14 182,962 20,894 203,856 89.7 1,297 205,153 32,431 237,584 21 188,259 18,399 206,658 91.5 1,444 208.102 31,746 239,848 28 185,583 12,684 198,267 93.6 3,135 201,402 32,856 234,258 Dec. 5 184,407 15,028 199,435 92.5 3,649 203,084 33,145 236,229 12 193,337 14,673 208,010 92.9 4,705 212,715 32,303 245,018 19 177,655 27,154 204,809 86.7 4,704 209,513 32,519 242,032 26 178,648 29,492 208,140 85.8 4,698 212,838 31,914 244,752 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3—PHILADELPHIA. 347 EXHIBIT B.—Reserve position. [In thousands of dollars.] 2. 3. 4. Net de- Federal posit and Date. Cash Net de- Reserve note lia- Reserve I reserves. posits. note cir- bilities ratio. culation. com- (1+4). bined (2+3). I Jan. 127,889 72,661 231,372 304,033 42.1 146,513 91,171 224,109 315,280 46.5 141,128 89,604 216,301 305,905 46.1 127,138 99,205 211,250 310,455 41.0 __ 135,252 91,818 209,920 301, 738 44.8 Feb. 7 | 135,695 102,530 208,865 311,395 43.6 14 132,670 105,315 214,301 319,616 41.5 20. 128,979 99,441 213,258 312,699 I 41.2 27. 129,751 103,283 210, 768 314,051 I 41.3 Mar. 7 134,872 106,296 210,099 316,395 42.6 14..! '.'.". I 130;665 107,540 206.956 314,496 41.5 21 "...*...""..*.!.! '.' ".".[""'l 128,476 101, 717 205,885 307,602 41.8 28 ". \..i 125,893 99,609 i 206,086 305,695 41.2 J M A u p a n y r e . 2 1 2 2 2 2 1 1 1 2 6 4 5 0 3 7 8 9 1 3 6 9 ....:.;.;. - ; ." . ;.;.;... . ; • . . • . . . . :.;.;;; i . . . ; : . - ; : j : : 1 •; 2 " 6 ; " * ] " " ; Q " " : . . . . 0 : . * . * . 7 . " : " . . ! ! " . I I . ! 1 1 1 1 1 1 1 1 11 1 1 2 1 2 3 2 3 2 3 2 3 3 2 3 8 2 4 6 7 1 6 2 4 0 0 6 0 , 6 , , , 9 , , 8 , 0 , , , , 6 5 , 9 5 8 4 9 2 5 3 3 7 5 4 1 2 6 8 0 5 6 9 0 3 3 1 3 1 4 7 5 7 5 2 7 1 1 1 1 1 1 1 1 1 1 1 9 9 0 3 2 1 9 0 1 0 0 0 0 6 9 4 0 0 1 2 6 4 8 4 0 4 , , , , , , , , , , , , , 4 8 4 2 1 1 6 4 4 0 6 5 3 1 3 5 6 6 3 0 8 4 7 0 9 8 4 1 7 2 5 2 1 3 1 8 1 3 3 2 2 2 2 2 2 2 2 2 2 2 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 5 3 3 7 0 1 4 3 4 6 8 6 6 , , . , , , , , . , , , , 7 7 3 6 3 5 9 7 4 2 3 6 7 0 1 5 1 9 6 1 0 9 6 3 9 3 3 0 2 9 4 2 2 9 6 8 6 6 4 3 3 3 3 3 3 3 3 3 3 3 3 3 0 3 0 2 1 1 1 0 1 1 1 0 0 4 0 4 8 9 6 2 0 1 0 0 0 7 , , , , , , , , , , , , , 1 8 3 1 8 1 4 1 5 1 9 9 0 8 8 5 6 6 1 5 9 2 1 2 7 7 3 1 3 7 6 7 6 5 7 0 9 9 9 4 4 4 4 4 4 4 4 4 4 4 4 4 4 0 1 1 0 3 1 0 1 0 0 2 0 1 2 . . . . . . . . . . . . . . 7 4 4 5 2 4 3 0 9 5 0 7 9 0 . July 3. 127,740 105,339 203,310 308,649 41.3 O S A e c u p t g . t . . 2 1 2 1 2 1 1 3 2 1 1 1 2 5 1 6 9 8 2 4 2 0 7 8 5 9 5 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 2 2 3 3 3 2 2 2 3 2 3 3 2 3 2 4 8 6 0 2 3 8 7 8 1 6 0 1 5 1 7 , , , , , , , , , , , , , , , , , 0 0 7 1 9 5 9 4 6 8 1 3 8 1 4 7 0 0 1 5 4 2 3 8 6 2 6 5 1 9 6 5 7 6 8 8 2 0 1 7 3 2 1 7 3 2 1 5 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 1 1 0 0 0 0 0 0 0 0 0 2 1 0 5 9 3 1 2 1 8 2 7 7 5 3 9 5 , , , , , , , , , , , , , , , , , 2 4 7 3 9 6 0 8 3 9 8 8 9 5 5 2 7 8 6 0 9 3 0 8 0 7 9 9 6 7 7 5 4 7 4 3 0 0 9 2 7 5 8 4 7 4 2 5 9 2 9 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 0 1 1 1 1 0 0 1 0 0 0 0 6 6 6 2 3 8 2 3 9 8 2 4 1 1 4 1 3 , , , , , , , , , , , , . , , , , 2 3 5 9 8 1 5 8 1 2 0 3 9 6 6 6 7 9 9 7 3 0 8 2 6 0 7 4 7 5 9 9 6 5 3 6 9 6 1 7 7 3 3 1 6 8 7 7 3 5 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 3 2 2 1 3 1 1 1 1 1 2 1 1 1 0 6 2 2 7 7 6 2 4 6 8 4 5 0 4 3 9 , , , , , , , , , , , , , , , , 1 0 9 6 0 1 4 0 0 4 8 2 6 3 2 5 9 4 7 7 8 7 4 2 5 6 2 0 9 2 7 5 5 1 9 9 1 4 0 4 0 8 9 5 4 7 2 7 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 0 0 0 0 0 1 0 0 0 1 0 0 0 5 1 0 0 . . . . . . . . . . . . . . . . . 4 6 5 3 0 6 6 6 4 4 3 2 3 9 7 7 1 Nov. 7!'. 135,026 116,139 219,870 336,009 40.2 14.. 136,342 107,846 220,593 328,439 40.4 21.. 132,150 112,384 219,689 332,073 40.2 28.. 134,055 97,128 223,051 320,179 40.5 Bee. 5.. 131,487 101,747 222,612 324,359 40.0 12.. 134,734 107,674 229,076 336,750 40.3 19.. 137,637 107,906 233,241 341,147 40.8 138,880 99,840 240,273 340,113 178983—20 23 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

848 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BANK OFPHIL4DELFHIA*o MOVEMENT OF EARNING ASSETS J DURING CALENDAR YEAR 1919. so so so 0 UNITED STATES SECURITIES. ISO : At OUOJIT. 100 IOO SO SO 60 60 40 40 20 20 O 0 PERCEHTA6E OFWAR PAPER TO TOTAL DISCOUNTS. 2S0 200 SO O TOTAL BILLS DISCOUNTED, -D; AHD WAR PAPERjW*, 300 300 250 TOTAL EARNIN6 ASSETS. m.\MCff\ArfiL\JWr\t/M£\JWty Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT INTO. 3—PHILADELPHIA. 349 FEDERALRESERVE BANK OF PHILADELPHIA NET DEPOSIT LIABILITY, F.R.NOTE CIRCULATION, C4SHRESERVES. AMD RESERVE RATIO. 1813. 70 70 60 60 SO SO /"V 40 40 30 30 20 ZO 10 10 RESERVE RATIO, (PERCENTAGE OF C+L). " xp5P0SITAIHD ER NOTE* LIABILITIES <L, AND TOTAL RESERVES/ C\ JAN KBL MCfiAPKL MAT JUNE JULY AUG. SEPT OCT NOV. PEC Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT C.—Comparative statement of condition. Dec. 31,1919. Dec. 31,1918. Dec. 31,1917. RESOURCES. Gold with Federal Reserve agent. $88,948,165.00 $85,583,245.00 $63,945,755.00 Gold redemption fund 8,448,460.00 7,900,000.00 1,500,000.00 Gold settlement fund 31,678,751.93 37,412,406.54 32,101,000.00 Gold coin and certificates 194,040.00 1,459,351.21 19,064,667.50 Gold with foreign agencies 10,505,616.91 3,675,000.00 Other lawful money 589,111.05 1,667,646.00 1,189,996.10 Total reserve. 141,364,144.89 134,022,648.75 121,476,418.60 Collateral notes—members... 87,908,591.66 135,032,810.41 4,008,400.00 Bills discounted—members.. 121,946,370.40 43,787,151.29 31,903,836.94 Bills bought in open market. 5,177,538.86 3,011,280.08 18,390,067.91 United States securities 32,071,900.00 11,417,900.00 9,649,950.00 Municipal warrants •I- 10,000.00 Total earning assets 247,104,400.92 193,249,141.78 63,962,254.85 Federal Reserve notes on hand i 9,677,915.00 11,739,400.00 4,348,590.00 Federal Reserve Bank notes on hand ! 260,249.00 332,037.00 Mutilated Federal Reserve notes 1,167,100.00 1,019,340.00 209*09 Redemption fund—Federal Reserve Bank notes.. 1,475,000.00 475,000.00 Due from depositary banks—war-loan account 43,175,744.75 Uncollected items 92,970,730.85 * 90," 852* 687*76' 22,620,777.40 All other resources 1,191,987.61 1,378,783.08 265,919.66 Total resources. 538,387,273.02 433,069,038.29 212,674,169.60 LIABILITIES. Capital 7,884,150.00 7,562,450.00 6,142,150.00 Surplus 8,805,132.41 1,304,171.92 Undivided profits 220,238.27 Government deposits 5,188,851.06 5,039,128.17 5,387,488.53 Due to member banks, reserve account. 110,541,160.68 99,720,124.95 103,000,930.13 Collection items, etc 79,115,484.23 66,740,374.64 435,026.60 Totalgross deposits 194,845,495.97 171,499.627.76 108,823,445.26 Federal Reserve notes outstanding 247,895,665.00 241,870,745.00 97,325,755.00 Federal Reserve Banknotes outstanding.. 29,052,000.00 9,258,200.00 Government deposits, special account 49,051,497.75 All other liabilities 853,331.89 1,573,843.61 162,581.01 Total liabilities 538,387,273.02 433,069,038.29 212,674,169.60 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 4—CLEVELAND. D. C. WILLS, Chairman and Federal Reserve Agent. DISCOUNT OPERATIONS. With the exception of the last two months of the year, we maintained a very good reserve position despite the fact that we were called upon for loans and rediscounts to a greater amount than ever before. The total volume of loans and redicounts far surpassed the volume for the year 1918. This is accounted for partly by the flotation of the Victory Liberty loan in the early part of the year. We are now lending on five issues of bonds as well as the certificates of indebtedness periodically issued. It was necessary for the banks to make loans to building and real estate interests whose operations had been strenuously curtailed during the war. Other demands from commerce and industry also arose in the course of transition from a war to a peace basis. The number of approved applications was 12,182 as against 5,714 the previous year. The number of banks accommodated was 409 as against 320 for 1918. The total of loans and rediscounts was $3,125,856,369.10 as against $1,386,000,000 in 1918. Of this amount $2,774,571,475 were member bank collateral notes secured by United States Government securities; and $98,868,639.20 were rediscounts of notes to member banks, secured by United States Government securities—a total of $2,873,440,114.20 in comparison with $252,416,254.90 loans on, and rediscounts of, commercial, industrial, and agricultural paper. Up to November 10, 1919, when a change in rates went into effect, it was more advantageous for banks to get their accommodation on paper secured by United States Government securities, and the increase in commercial paper rediscounts from November 10 to the close of the year was accordingly very marked. Approximately $14,100,000 of trade acceptances was reiiscounted for our member banks during the year and the amount, without doubt, would have far surpassed this figure but for the preferential rates that obtained on war loan paper during the first 10 months of the year. The trade acceptance is gaining great headway throughout the country and especially in this district. Every day brings new users to our attention. The organization in Cleveland of a local council of the American Acceptance Council has just been announced, and other councils are in process of development in other large centers, which should do much for the better development of the trade acceptance system. A comparison of various classes of rediscounts and loans made during the years 1918 and 1919 shows that rediscounts of commercial, industrial, and agricultural paper and trade acceptances fell off, while the volume of paper secured by United States Government securities increased tremendously, largely because of the preferential rates that were in effect on paper secured by United States Government obligations, during the first 10 months of 1919. 351 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

352 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Owing to our splendid reserve position in the first 10 months of 1919, other Federal Keserve Banks, whose reserve positions made it necessary, availed themselves of the rediscount facilities permitted between Federal Reserve Banks by rediscounting paper with us to a greater extent than ever before. The volume of bankers' acceptances purchased during 1919 shows a very large increase over the transactions of a similar character during the previous year, and fully demonstrates that the banker's acceptance is being used to a greater extent than ever before. It is interesting to note that during the year six additional banks have been granted authority to accept up to 100 per cent of their capital and surplus. Purchases of United States Government securities during the year 1919 aggregated $284,617,250, of which $262,341,000 consisted of 2 per cent certificates of indebtedness, representing loans to the United States Government for one and two day periods at times when the various issues of certificates were passing through the process of redemption and the special 2 per cent certificates securing Federal Reserve bank notes in lieu of silver certificates which were withdrawn from circulation. RESERVE POSITION. During the first 10 months of 1919 the reserve position of this bank was strong and constant, running between the 55 per cent and 65 per cent levels, and with a total showing of $229,017,300 in rediscounted paper for other Federal Reserve Banks. This stabilized position was due to the absence of seasonal demands by reason of diversified manufacturing and agricultural interests. This condition eliminates the peaks and dips to which some districts are subjected for crop moving purposes, such as cotton and wheat. While it is not generally known, the agricultural wealth of this district will compare well with that of other parts of the country. Commencing November 1 the reserve ratio started downward. It was quite natural that the year-end demands should greatly increase credit requirements, and it would be a pleasing premise to believe that this legitimate demand was the only cause for the downward course of the reserve. A careful analysis, however, would show that the cause was greatly aggravated by needless speculation and credit inflation. RESULTS OF OPERATION* Gross earnings of the Federal Reserve Bank of Cleveland during the year 1919 have amounted to $7,801,000, or slightly in excess of $150,000 a week, and approximately 49 per cent in excess of gross earnings for the previous year. The expense of operation, including expense of branches, this district's proportion of Federal Reserve Board expense, cost of Federal Reserve currency, and all items of equipment (which have been charged uniformly to current expenses) have been $1,351,000, or approximately 36 per cent greater than last year. The regular dividends were declared and paid during the year, and after setting aside a reserve sufficient to cover all depreciation of assets, the sum of $5,537,000 was transferred to surplus account, as provided in the act. The addition of this sum to surplus account makes a total of $9,089,000, or 47 per cent of our Digitized fors uFRbsAcSrEibRe d capital. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 4—CLEVELAND. 353 The following table shows the principal charges and credits to profit and loss account for 1919 as compared with 1918: Comparative statement, profit and loss account, 1919 and 1918. 1919 1918 Balance profit and loss, Dec. 30,1917 $132,311.58 Earnings: Discount on bills discounted $5,341,785.14 3,130,600.29 Discount on bills purchased 1,882,984.84 1,135,680.37 Income from United States securities.. 450,308.07 779,133.53 Penalties on deficient reserves 66,441.90 66,462.03 Transfers bought and sold, net 45,606.92 51,213.53 Miscellaneous. 4,569.03 63,773.86 Rents received, net 9,133.18 Total.. 10,829. C 5,359r175.19 Expenses: Cost of Federal Reserve currency (including taxes on bank-note circulation) 246,983.25 188,661.12 Furniture and equipment (main office and branches) 53,414.55 85,784.13 Depreciation of property purchased for bank premises (charged off) 254,683.73 Premium on United States bonds and securities (charged off) 5,044.06 98,882.79 Coupoq shipment lost (charged off) 4,199.85 Operating expenses— Main office 728,899.24 525,652.24 Cincinnati branch 141,735.87 89,257.91 Pittsburgh branch 179,941.98 102,829.78 Difference account 530.00 Dividends paid 556,785.69 716,107.22 Transferred to reserve for franchise taxl 1,776,000.00 Transferred to surplus account 5,537,000. 00 1,776,000.00 Transferred to reserve for taxes Federal Reserve Bank notes 45,055.98 Transferred to reserve for Federal Reserve Board expenses 1920 46,554.88 Total.. 7,800,829.08 5,359,175.19 1 This amount was transferred to surplus account Mar. 3, 1919, in accordance with an amendment to Federal Reserve Act approved Mar. 3,1919. MOVEMENT OF MEMBERSHIP. Eight national banks were organized during the year and 10 withdrew from the system. Of these latter three were merged with other national banks; two were merged with State institutions; two were consolidated, forming another national bank; one liquidated to form a State bank; one went into the hands of a receiver and another into voluntary liquidation. Of the new national banks organized, one was the result of the consolidation of two other banks as above mentioned. Thirty-three State banks and trust companies became members of the system during the year. There were two withdrawals of State bank members—one, a trust company, was merged with another State institution, and the other surrendered its membership. The final result in membership was a loss of two national banks and a gain of 31 State bank members, or a net gain of 29. The total number of members on December 31 was 843. A law passed at the last session of the West Virginia Legislature, by means of which eligible banks in that State may enjoy the benefits and privileges of membership, became operative last July, and as a result we have added to our member bank list three West Virginia banks having aggregate resources of $9,552,000. With the signing of the peace treaty the patriotic call to eligible State institutions to join the Federal Reserve System was seemingly at an end, but the great burden placed on the United States in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

354 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. readjustment and reconstruction of the world's finances has impressed these institutions with a further patriotic duty which many readily see can be best fulfilled through membership, as it is evident to them that if the Federal Keserve System is to be further strengthened it must be done through the accession of State bank members. The Federal Keserve Bank of Cleveland has always felt that the best means of creating interest in membership is through personal contact. This was carried on during the fore part of the year by our force of field agents. After the flotation of the Victory Liberty loan this force was very considerably reduced, and, in a great number of cases, this contact was developed by inviting a number of officers of eligible institutions to visit the Federal Reserve Bank of Cleveland, at which times the requirements and benefits of membership were discussed. There has also been carried on through the mails an organized campaign for the purpose of placing before eligible institutions the salient points in favor of membership. RELATIONS WITH NATIONAL BANK MEMBERS. On account of the carrying of Government securities for customers and the great need for extended credit by reason of high prices and increased business activity, rediscount transactions have greatly increased over all former records. Naturally, the large part of these transactions has been for the account of national banks whose number exceeds that of State bank members. Of the total volume of rediscounts about 69 per cent was for the use of national banks. The full effect of the additional powers granted in the amendment to section 11-k of the Federal Reserve Act approved September 26, 1918, was not immediately appreciated by the national banks, and as a result few applications were received during the latter part of last year. However, during this year an increased number have realized the opportunity for increased business. In the State of Ohio applications were further stimulated by the enactment of the new State banking law which gave to trust companies the right to exercise general fiduciary powers as in other States. As the Federal Reserve Act grants only such powers as are not in contravention of State or local law the enactment of the above law made it much more desirable for Ohio national banks to apply for fiduciary powers. In this district there were 51 national banks granted fiduciary powers, distributed by States as follows: Kentucky 3, Pennsylvania 16, Ohio 31, and West Virginia 1. As a result of war financing the national banks of the district were brought into much closer contact with the Federal Reserve Bank. The sales of certificates, the placing of the Liberty loan, and other matters incident to the war financing all tended to cement and strengthen this relationship. The Federal Reserve Bank of Cleveland has always felt that it owed to member banks the best possible service. Advantage has been taken of opportunities created in our dealings with members to show our desire to be of real assistance, and as a consequence a more cordial feeling has resulted. Recognizing the high value placed upon membership by our member banks, a series of advertisements concerning association with the Federal Reserve System was prepared for publication and dis- Digitized fort rFiRbAuSteEdR to member banks on request. In the preparation of these http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 4—CLEVELAND. 355 advertisements, local conditions were kept in mind and each series made to fit individual needs so far as possible. Careful records were kept of all advertisements sent out, so that duplications were avoided in any given community. That this service is much appreciated by our members is demonstrated by the numerous requests received and by testimonials to its value from banks which have made use of it. A semimonthly bulletin issued by our library also aims to give service to our member banks by listing leading articles in current periodicals on banking and financial topics. The librarian is also ready to make any special investigations that may be asked for, and several banks have already availed themselves of this service since the bulletin was first issued in September of this year. RELATIONS WITH STATE BANKS AND TRUST COMPANIES. As in the case of national banks, the Government financing, high prices, and increased business activity made necessary additional rediscounting and, as a result, the discount operations of State banks and trust companies amounted to $957,000,000, or approximately 31 per cent of the total. While a large percentage of Government securities was used for these loans, yet it is believed, in these latter months of the year, that a large part of the rediscounts was for business requirements, and commercial paper would have been used in their stead if these securities were not more readily available. Ninety-seven State banks are now members of the Federal Reserve System in this district. These institutions represent resources of $784,636,000. As a result of their membership, many of them have extended the scope of their business and are actively engaged in commercial banking. It is worthy of note that, as a class, State bank members make more use of the service which the Federal Reserve Bank offers than do national bank members. This is accounted for by the close study of the system which the officers make before joining, with a consequent greater knowledge of the facilities it affords. An encouraging feature is the appreciation evinced by those who have been members long enough to have made a trial of the merits of the system, and their expressed view that membership has been of value to them in many ways that were not anticipated on joining. It is also noted that the more progressive nonmember eligible banks are much more favorably disposed towTard the system and generally express themselves to the effect that, eventually, they intend to join, applications being withheld until a convenient season. During the year arrangements have been completed with the banking departments of all States covered by this district to cooperate in the examination of State bank members. In anticipation of this a staff of examiners was secured, with Mr. William H. Fletcher as manager of the department of examination. The advantage in joining in these examinations was primarily to instruct the member banks in a fuller use of the services offered by the system. It was not the intention to conflict in any way with or to interfere with the State departments ' examinations which, in this district, are of a high grade and very satisfactory. Undoubtedly this contact through the examiner will be of mutual benefit to the bank examined and the Federal Digitized foRr FeRsAeSrvEeR Bank of Cleveland and also be of assistance to the State http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. department. The department now consists of the manager of examinations and three assistants. These will be added to as the work develops. FISCAL AGENCY OPERATIONS. The successful flotation of the Victory Liberty loan and the sale of Treasury certificates were the outstanding features of the year's work. It is of interest to note, in connection with certificate sales, that for all certificates for which this bank was assigned a quota, the subscriptions were 110 per cent of the total of quotas. Member national banks alone subscribed for an average of about 55 per cent of all certificate issues and Victory notes. Subscriptions to the Victory loan were received from over 99 per cent of all incorporated banks in the district, while over 70 per cent of such banks subscribed to the various issues of Treasury loan certificates. The report of operations of the depositaries department shows interest collected in the sum of $1,276,000, or approximately 88 per cent of all fiscal agency expense. The largest aggregate deposit in depositary banks during the year was $180,000,000 on June 9, and the smallest was $18,301,000 on December 1. A decided reduction has been made in the force of the fiscal agency department as the result of the completion of a successful flotation of all Liberty and Victory bond issues. FEDERAL RESERVE NOTES. There was little demand for Federal Reserve notes during the period following the signing of the armistice until the industrial skies cleared in the spring of 1919 and the resumption of commercial activity necessitated additional issues of currency. From December, 1918, to June, 1919, there were issued here no new notes of the $20 denomination. As business conditions returned more nearly to normal, the demand for notes has increased, although the amount outstanding is but $17,000,000 in excess of note liability one year ago. FEDERAL RESERVE BANK NOTES. The circulation of Federal Reserve bank notes has been continued and more than doubled in volume during the current year. This increase is represented entirely by bills of $1 and $2 denominations, a reduction of over 50 per cent having taken place during the year in the volume of $5 notes in actual circulation. This is accounted for by the continued and insistent demand in this district for small bills, which could not be fully supplied by governmental issues. POSITION OF COMMERCIAL BANKS AS A RESULT OF WAR FINANCING. A comparison of resources and liabilities of member banks on November 17, 1919, and December 31, 1918, follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 4—CLEVELAND. 357 Comparative statement of aggregate resources and liabilities of member banks, Nov. 17, 1919, and Dec. 31, 1918. [000 omitted.] Nov. 17, Dec. 31, 1919. 1918. RESOURCES. Loans and discounts ,370,216 $1,162,712 Overdrafts 1,291 790 Acceptances and letters of credit 26,817 22,466 United States securities 356,921 195,450 Liberty loan bonds 168,393 All other bonds, securities, etc 453,041 404,628 Banking house, furniture, and fixtures. 60, 737 57,385 Other real estate 10,883 10,631 Reserve with Federal Reserve Bank... 129,506 126,320 Cash and due from banks 318, 749 358,125 5 per cent redemption fund 5,421 7,455 Other assets 20,296 19,272 Total resources. 2, 753,878 2,533, 627 LIABILITIES. Capital 158,303 155,250 Surplus 158,013 150,440 Undivided profits 58,993 43,869 Circulation 90,028 89,687 Due to banks and bankers 237,942 266,312 Demand deposits ., 180,444 1,083,077 Time deposits 653,496 551,708 United States deposits 27,265 31,950 Bonds borrowed 20,325 21,237 Bills payable 116,827 81,852 Acceptances and letters of credit. 27,132 22,740 Other liabilities 25,110 35,505 Total liabilities. 2,753,878 2,533,627 Liberty loan bonds included in United States securities. While the increase in total resources, as shown in the table, is due in part to the admission of new banks to membership, a comparison of figures for a like number of banks on the date mentioned shows that the member banks generally have enjoyed unusual prosperity during the past year as a result of operations incident to war financing and the subsequent transition to a peace basis. The increase in member banks' obligations is the result of heavy demands for funds in the resumption of various industries curtailed during the war. POLICY TO BE PURSUED IN RESTORING LIQUIDITY OF BANKS. To enable the member banks to carry loans made to subscribers to the fourth Liberty loan and to subscribers to the Victory loan, the liberal loaning policy which prevailed through 1918 was continued without an increase in rates for Government-secured paper until November 10, 1919. It was the judgment of our board that as the Government's requirements had been substantially provided for the time had arrived when the differential rate between Government-secured paper and commercial loans should be removed. Higher rates at the Federal Reserve Bank would naturally mean naming of higher rates to the customers by member banks, which should bring about a gradual liquidation of loans secured by Government paper, and thereby gradually correct the inflated credit situation brought about by the exigencies of the war. It is appreciated that the industrial activity, which has prevailed Digitized foarn FdR AiSsE Rp revailing throughout the fourth Federal Reserve district, http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

358 ANNUAL REPORT OF THE FEDERAL. RESERVE BOARD. coupled with high costs of materials and commodities, makes for heavy demands for credit upon our member banks. It will be the policy of this bank to assist the demand of legitimate business in every way consistent with conservative banking methods. It is, however, incumbent upon the member banks to use discrimination in extending credit. While legitimate industry should be helped and encouraged, loans for speculative purposes should be discouraged to the point of being refused. OPERATIONS OF FEDERAL RESERVE BANK BRANCHES IN CINCINNATI AND PITTSBURGH. Facilities afforded through the operations of our branches in Cincinnati and Pittsburgh have been taken advantage of to a very large extent by member banks located within their respective branch territories, and have been the means of improving markedly the feeling of member banks in those sections toward the Federal Reserve System. The check-collection system has been used to an increasing extent, especially in the Pittsburgh territor}7, where the number of items handled has shown a very marked increase over 1918. Cincinnati has also shown a very large increase in the number of items handled during 1919. Money transactions have been very heavy at our branches, and the banks have repeatedly expressed their gratification over the facilities afforded by the branch banks. The books covering the accounts of the banks in the branch territories are, of course, carried at the main office, all entries being made by means of daily transcripts and private telegraph connections. Discount operations in the oranch cities have been very large during the past year. While the books covering fiscal agency operations are located at the main office, our branches are permitted to handle all fiscal agency operations with the exception of transactions by mail. There would not be any particular advantage to our member banks in permitting our branches to handle mail fiscal agency matters, as our district is so compact that mail addressed to the main office would reach it in as quick a time as mail addressed to either of the branch cities. OPERATIONS OF MONEY DEPARTMENT. During the year there has been delivered or shipped to members in this district currency amounting to $358,737,280.41 and to nonmember banks $3,386,069.48, or total shipments amounting to $362,123,349.89. The receipts of currency from member banks during 1919 totaled $377,635,253.70 and from nonmember banks $5,660,757.79, total receipts from the above sources amounting to $383,296,011.49. The above figures represent only a part of the tellers' activities, while disbursements of all kinds for the three offices for the year 1919 amounted to $628,531,886.97, and receipts of all kinds amounted to $605,560,435.57. CLEARING AND COLLECTION OPERATIONS. Par list—On January 1, 1919, there were 422 banks out of a total of 1,928 in the district whose checks we were unable to collect at Digitized fopr aFRr.A SEDRu ring the year substantial progress was made in adding http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 4—CLEVELAND. 359 banks to the par list until on December 1 there remained only 7 banks, all located in our part of Kentucky, whose names did not appear on the par list. With the close of the year arrangements were made for the collection of checks on these banks so that we are now able to collect checks drawn on every bank in the Fourth Federal Reserve District at par. In a very few cases it has been necessary to collect for a time through the American Railway Express Co. or through private agents established in towns where banks could not be persuaded to remit at par voluntarily. Usually a very short experience with this method of collection has resulted in a voluntary agreement to remit without exchange. The addition of 422 banks to the par list during the year was very gratifying. Our member banks are now able to collect checks on all banks in the first, second, third, and fourth Federal Reserve districts. Out of a total of almost 30,000 banks in the United States less than 4,000 do not appear in the par list issued by the Federal Reserve Board and this number is rapidly decreasing. Check collections and clearings.—With a steady increase in the par list the check-collection system has become more useful to member banks, and there has been a steady increase in the average number of items handled daily. This average has increased from 75,202 in January, 1919, to 123,983 in December. The total average value of the items handled daily has increased from approximately $39,000,000 in January to approximately $49,000,000 in December. Collections—city and foreign.—Departments for the handling of purely collection items which had been operating in a rather modest way increased rapidly during the year, owing to improvement in the facilities for handling collections payable throughout the United States. Because of direct communication with all other Federal Reserve Banks and branches, we are able to offer our member banks quicker service than they have been accustomed to receiving, at less expense. That our member banks appreciate this service is indicated by the steadily growing volume of collection items handled by our three offices during the year. PERSONNEL. Because of the rapid expansion of the bank's operations during 1919 there were many additions to our official staff. These appointments necessitated a reorganization in our banking and fiscal agency departments. In January Mr. M. J. Fleming and Mr. F. J. Zurlinden, formerly assistant cashiers, were appointed assistants to the governor, and Mr. H. G. Davis, formerly an assistant cashier, was appointed cashier to fill the vacancy caused by the resignation of Mr. Edwin C. Baxter, and Mr. C. W. Arnold was appointed an assistant cashier. In August Mr. P. A. Brown was appointed assistant cashier of our Pittsburgh branch. During December Mr. C. H. Wagner, formerly auditor, and Messrs. G. A. Stephenson and D. B. Couser were appointed assistant cashiers. Mr. F. V. Grayson, formerly assistant auditor, was appointed auditor. The retiring members of the board of directors for the year were Mr. Lyman H. Treadway, class C director; Mr. W. B. Wright, class B director; and Mr. W. S. Rowe, class A director. It is with sincere regret that we announce the untimely death of our esteemed vice chairman, Mr. Lyman H. Treadway, which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

360 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. occurred in December. Mr. L. B. Williams, of the firm of Hayden, Miller & Co., investment bankers, of Cleveland, Ohio, has been appointed his successor by the Federal Reserve Board. Mr. R. P. Wright was reelected as a class B director. Mr. Chess Lamberton, of the Lamberton National Bank of Franklin, Pa., is our newly elected class A director to succeed Mr. Rowe. Mr. Rowe was ineligible for reelection, because of the provision in the Federal Reserve Act that a director can only be elected by the banks which are members of the same group as the member bank of which he is an officer or director. The regrouping of Mr. Rowe's institution has placed that bank in a different group from the one which voted. NEW BUILDING. Following an exhaustive study of available building sites, the board of directors, acting on the recommendation of the committee appointed at the December, 1918, meeting, authorized the purchase of the Masonic Temple property, at the northeast corner of Superior Avenue and East Sixth Street. The area of the site purchased is approximately 30,000 square feet, and the purchase price was $865,000. On November 12, 1919, a contract was entered into with local architects to assume charge of the erection of a new building on the site above mentioned. While no definite conclusion has been reached as to detailed plans, it is expected that a program will be prepared early in the coming year. It is probable that the new building will be six or eight stories, which should provide the room to meet our additional space requirements due to expansion of our present work, and the possibility of taking on additional functions within the next 10 or 15 years. The type of building will be thoroughly in keeping with the dignity of the institution. We are at present occupying 31,250 square feet of space scattered through the Williamson and the Thompson Buildings. The available room is inadequate to meet even our present requirements, and the erection of a building designed for our special needs must result in greater convenience and, as a result, increased efficiency. MISCELLANEOUS. The increased activities during the past year have compelled us to establish an accounting and planning department for the purpose of centralizing all the accounting work and the preparing of all necessary forms into one department. It has also been found necessary to organize a new statistical department, together with an editorial department. The continued increase in operations has made necessary the enlargement of the departments of loans and discounts, money, foreign collections, analysis, and bookkeeping, and the installation of a battery of five-additional chests in our main vault. Operations at our Pittsburgh and Cincinnati branches have had a proportional increase, and expansion and remodeling have been necessary. An especially built armored truck has been purchased to facilitate transportation of and give better protection to our money and security shipments to and from the post office and express offices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 4—CLEVELAND. 361 There is no large financial library in this district, such as those belonging to some of the larger New York banks. Realizing the need of a good reference library for the use of our own bank staff as well as of our member banks, a librarian was engaged in October, 1918, to make a beginning in this direction. The library now contains about 400 volumes of works on banking and finance and other books for general reference, in addition to a large file of pamphlets, circulars, and clippings. Ten daily newspapers are received and clipped. About 70 periodicals are subscribed for or received by gift. The periodicals are indexed for all subjects which may have value for reference later. It has not been possible as yet to lend the books and periodicals from the library to other banks except in special cases, but many reference questions have been answered and lists of books and references to periodicals have been compiled. As the library increases in size and scope there is no doubt it will prove of much value to the banks of this district. GENERAL BUSINESS AND BANKING CONDITIONS. The uncertainty regarding the immediate future of business following the signing of the armistice gave way early in 1919 to a feeling of confidence, and the resumption of activity in practically all industries was limited only by the ability to secure the necessary labor and material. The district, as a whole, has enjoyed a fairly satisfactory degree of production, although a disposition to restrict the output of the more essential articles, in favor of those which may properly be classed as luxuries, is evident. In many lines in which production was curtailed, or entirely suspended during the war period, energetic action on the part of manufacturers has succeeded in bringing about a partial, if not quite complete, return to the prewar status. The two outstanding features in the industrial life of the district were the strikes of the steel workers and the coal miners. Both of these disturbances struck at basic industries in this section. Certain lines have been affected by the shortage of some forms of steel, but a practical return to normal conditions is found in the steel trade to-day. The strike of the mine workers caused some inconvenience; in a number of communities coal allotment restrictions were again brought into force and some manufacturers were forced to limit or suspend operations. Fortunately a settlement was reached in time to prevent what might have been a serious blow to business. Local strikes are handicapping the efforts of some producers, but the effect on general business is negligible. Wages continue high, and there is employment for all who wish to work. Farmers are enjoying unusual prosperity, the result of highly satisfactory crops and a large money return. This is particularly true of the Kentucky tobacco section, and expressions of appreciation are heard of the ease with which the funds required to move the crop were secured from the Federal Keserve Banks. The demand for funds throughout the year has been unusually strong, especially during the last two months. Banks throughout the district enjoy unparalleled prosperity, and are amply able to meet the legitimate requirements of business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

362 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT A.—Movement of principal earning assets of the Federal Reserve Bank of Clevefa^ land during the calendar year 1919. [In thousands of dollars.] ! | Discounted Date. s U e p c n a b u p i y t r e e e r d d O c p t o h a u e p n r e t e d r. d is- 1+2 ! Percent m i b n B o a o u r i k p l g l e e s h n t t . b co i T l a u l o s n n t d t d a e l i d s- se U S cu n ta r i i t t t e e i s d es e a a T s r o s n e t i a t n s l g . States bought. war obligations. Jan. 3 115,099 12,074 i 127,173 90.5 36,478 163,651 12,810 176,461 10 113,381 9,177 I 122,558 92.5 32,100 154,658 16,203 170,861 17 96,398 9,355 i 105,753 91.2 40,362 146,115 14,222 160,337 24 91,049 8,754 I 99,803 91.2 44,749 144,552 18,186 162,738 31, 87,593 8,086 i 95,679 91.5 48,510 144,189 13,143 157,332 Feb. 7. 84,325 7,282 ! 91,607 92.0 63,235 154,842 12,270 167,112 14. 97,060 6,745 ! 103,805 93.4 61,750 165,555 12,150 177,705 20. 95,522 7,316 ! 102,838 92.8 61,359 164,197 12,424 176,621 28. 101,209 6,320 i 107,529 94.1 60,797 168,326 12,425 180,751 Mar. 7. 96,969 4.934 ' 101,903 95.2 57,648 159,551 13,425 172,976 14. 110,674 4,503 ! 115,177 96.1 51,183 166,360 13,925 180,285 21. 114,661 3,654 118,315 96.8 47,231 165,546 14,540 180,086 28. 114,559 2,332 116,891 98.0 37,452 154,343 15,159 169,502 Apr. 4. 120,577 3,022 | 123,599 97.6 32,694 156,293 15,131 171,424 11. 131,219 7,269 i 138,488 94.7 29,719 168,207 15,499 183,706 18. 126,582 8,469 | 135,051 93.7 24,017 159,068 17,114 176,182 D N J J A S O M u u e e c o u i a n c y p t v g y . . e t . . . 3 2 2 2 2 2 1 1 1 1 1 2 2 1 1 2 2 2 2 1 2 1 1 1 2 z 3 5 5 7 6 1 2 1 6 4 1 8 4 9 0 8 2 9 6 2 2 9 7 9 0 7 5 6 9 3 8 5 3 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 3 1 2 1 2 1 1 0 1 1 1 1 2 2 1 1 0 0 0 1 0 0 0 0 3 2 1 1 2 3 2 3 1 2 0 2 0 6 2 8 5 1 3 4 9 1 6 4 0 2 0 6 1 0 0 0 5 4 3 0 1 6 9 8 1 5 8 4 5 2 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 5 2 2 6 3 4 9 7 5 9 2 9 8 6 5 4 3 0 8 4 9 4 4 4 0 1 4 4 7 3 5 1 0 7 6 1 3 5 7 7 3 6 3 3 0 2 0 6 9 3 8 6 2 8 2 6 8 3 3 7 6 8 0 6 6 9 9 5 4 9 0 0 6 4 2 2 9 9 8 3 2 0 7 3 7 5 2 3 9 2 6 9 9 5 2 3 3 1 4 0 8 3 3 2 3 6 2 1 3 3 4 4 4 3 2 2 2 2 2 1 2 2 1 1 1 1 1 1 3 7 5 2 1 0 9 3 7 6 3 4 9 9 8 1 1 6 8 8 9 1 5 6 6 7 0 1 0 0 5 4 6 1 5 5 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . 1 5 6 4 2 2 0 6 2 7 9 2 9 0 9 4 9 7 4 2 6 7 1 4 9 4 5 4 6 5 8 8 1 5 4 7 1 6 5 5 4 0 4 0 4 6 2 6 9 7 2 8 2 4 2 0 4 9 3 7 3 2 6 6 5 4 8 6 1 1 1 1 4 1 1 1 1 3 4 6 3 3 6 3 5 5 3 4 4 8 3 5 5 6 3 0 9 1 4 8 5 6 9 3 0 0 7 0 i ! ! , i ! | i > ! 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 5 3 6 4 6 5 5 4 4 4 3 3 4 1 1 2 1 2 2 1 1 1 1 3 1 2 2 1 2 3 2 3 4 3 2 2 6 9 7 9 3 9 6 0 7 0 0 6 2 9 6 1 4 5 0 2 1 4 2 4 0 4 0 3 6 1 8 9 8 0 8 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 5 1 2 2 0 2 7 4 7 1 7 1 9 1 7 2 9 9 3 4 6 5 8 9 6 9 9 6 1 6 5 2 1 3 3 0 7 3 0 8 0 1 3 2 1 3 2 9 9 1 4 0 8 8 4 9 9 2 9 1 6 8 6 8 4 3 1 0 8 5 2 3 7 5 5 3 6 3 8 3 4 2 7 1 5 0 0 8 5 4 3 9 8 6 2 6 6 6 9 3 6 0 6 7 9 8 5 7 I 8 8 8 8 8 7 7 7 7 9 9 8 8 8 8 7 8 9 9 9 8 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 2 1 0 0 9 1 6 4 3 2 5 4 3 2 2 9 4 1 2 9 0 0 0 1 4 2 2 5 5 4 5 5 6 6 6 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 3 6 8 8 7 9 7 0 8 2 0 3 0 8 8 1 3 9 6 0 4 3 5 5 2 5 9 8 1 3 0 3 0 3 3 6 5 5 4 3 3 6 6 6 5 5 3 3 4 3 5 4 4 4 4 5 5 5 5 3 3 5 2 2 2 2 2 2 2 2 6 7 4 9 8 6 4 0 6 8 7 7 0 1 5 9 7 2 6 4 0 4 7 5 6 6 1 6 6 0 0 1 2 0 1 1 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 8 9 6 1 7 7 9 8 5 2 4 8 9 7 5 2 8 1 6 5 3 0 9 6 1 0 9 9 9 1 4 3 5 6 8 2 6 0 1 9 7 5 2 1 1 4 0 1 7 6 8 4 5 6 3 7 4 1 1 4 3 6 1 2 7 3 6 6 6 5 5 8 7 0 8 4 9 7 3 4 0 0 2 1 1 8 8 2 3 0 3 3 7 6 6 9 9 9 4 5 2 2 4 4 2 2 4 1 ! I i I [ | 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 1 1 2 1 0 2 8 8 8 7 5 7 7 5 6 6 6 7 5 6 7 6 5 6 5 6 4 6 5 5 6 4 6 4 4 3 0 7 7 6 7 4 7 3 0 0 9 6 6 8 8 2 8 5 7 9 0 5 4 3 6 1 4 0 9 2 0 1 2 9 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 5 0 , 8 9 , 0 8 6 6 1 6 4 6 2 9 3 5 1 7 4 3 2 9 7 6 3 5 6 1 9 9 5 1 5 9 9 2 0 7 3 3 9 3 9 0 0 6 9 2 2 2 1 6 1 4 6 5 7 5 5 6 0 6 3 8 4 4 3 5 6 2 7 9 0 2 2 2 4 5 7 8 3 3 2 0 6 2 5 3 8 6 5 9 9 1 1 5 2 0 9 5 1 1 0 3 4 0 7 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 5 6 5 5 6 4 5 5 5 5 4 5 5 2 5 2 3 1 1 1 9 0 9 9 8 8 8 8 8 7 7 7 7 7 6 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 6 7 9 , 8 , 8 9 7 9 9 8 8 6 6 8 4 7 0 6 4 0 5 9 3 6 0 5 4 1 6 5 5 0 5 1 1 5 2 6 7 2 6 6 2 8 9 2 0 6 9 7 9 9 1 1 9 5 6 6 9 5 5 8 1 5 4 2 9 8 2 3 3 8 7 0 5 7 2 9 8 0 0 7 8 8 8 2 5 8 7 0 5 3 8 8 6 9 8 0 0 0 1 9 5 7 5 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 5 5 3 5 3 4 3 1 0 0 0 0 9 8 8 8 8 8 8 9 7 9 7 8 9 8 7 6 7 7 7 5 6 8 6 2 0 4 2 0 9 3 3 6 6 9 2 2 6 3 4 1 0 9 9 0 8 0 9 5 6 7 2 2 7 2 8 8 9 0 5 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 6 5 7 1 9 4 0 3 8 6 0 4 4 1 2 8 7 9 7 2 7 1 3 6 3 4 5 6 5 1 9 2 4 6 1 8 5 7 2 6 6 2 1 4 1 2 9 7 2 1 3 4 8 2 2 6 2 0 3 1 7 3 1 9 2 0 1 3 4 9 0 7 9 7 2 0 5 4 9 7 2 0 2 1 5 3 1 6 0 7 1 8 8 6 7 4 0 7 8 8 1 3 7 1 5 5 8 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 4—CLEVELAND. 363 EXHIBIT B.—Movement of gold and cash reserves, Federal Reserve note and net deposit liabilities, and the reserve percentage of the Federal Reserve Bank of Cleveland during the calendar year 1919. [In thousands of dollars.] Ratio of cash re- Federal serves to Reserve net deposit Bate. res G e o rv ld es. res C e a r s v h es. n a o c t t e u s a i l n dep N o e s t its. (3 + 4.) an R d e F se e r d v e e ral circulation. note liabilities combined. Jan. 3 199,626 200,855 248,670 107,343 356,013 56.4 10 216,445 217,690 249.933 117,076 367,009 59.3 0 17 221,407 222,875 239,606 121,756 361,362 61.7 24 .. 225,986 227,658 235,564 132,742 368,306 61.8 31 222,857 224,466 231,153 128,746 359,899 62.4 7 .. . 200,756 202,819 232,992 115,066 348,058 58.3 14 213,276 214,627 233,874 136,428 370,302 58.0 20 210,315 211,323 228,815 136,245 365,060 57.9 28 224,920 226,002 233,069 150,467 383,536 58.9 War 7 218, 791 220,054 230,950 138,410 369,360 59.6 14 208,602 219,685 229,761 135,963 365,724 57.3 21 222,308 223,409 229,590 149,040 378,630 59.0 28 226,911 228,000 232,642 139,307 371,949 61.3 Apr. 4 . . 212,843 213,959 229,221 130,296 359,517 59.5 11 218,281 219,349 233,042 144,522 377,564 58.1 18 204,863 206,044 227,698 127,644 355,342 58.0 25 214,971 216,273 230,595 124,327 354,922 60.9 May 2 212,801 213,992 228,202 138,325 366,527 58.4 210,216 211,331 227,838 125,435 353,273 59.8 9 228,947 230,134 225,171 135,238 360,409 63.9 2 1 3 6 ... 208,321 209,391 224,788 135,000 359,788 58.2 29 ... 204,821 205,826 223, 599 131,300 354,899 58.0 June 6 213,014 214,118 218,094 130, 530 348,624 61.4 N D f O A J t u e e o c u p l c v t g y . t . . 2 2 2 2 1 1 3 1 2 2 2 1 1 1 2 1 1 2 2 1 1 1 6 1 8 4 5 2 9 1 4 7 9 3 2 6 5 0 7 9 5 2 8 5 0 7 3 1 1 8 3 . . . . . . . .. . . . . . 2 1 1 2 1 1 2 1 1 1 2 2 2 1 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 6 8 0 8 6 0 7 7 7 1 1 0 1 8 1 1 2 0 0 0 0 1 1 9 8 9 8 9 8 9 1 1 6 5 3 8 8 1 2 8 0 0 5 1 0 4 9 1 1 2 6 5 2 6 7 9 7 3 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 1 5 2 3 1 3 9 2 9 3 4 1 2 9 7 4 6 8 0 8 5 9 3 1 8 4 3 5 7 7 1 5 2 0 5 5 2 2 8 2 2 6 4 8 9 7 2 7 7 4 5 6 0 5 3 0 6 6 2 8 3 4 0 6 3 4 0 0 0 3 4 2 7 1 1 6 3 9 7 0 4 5 8 2 4 2 1 1 2 1 1 1 2 2 2 1 1 1 2 2 2 2 2 2 2 1 2 2 2 2 1 1 1 1 1 1 8 7 6 8 0 6 7 1 0 1 7 1 1 2 0 0 1 8 1 1 0 0 9 9 1 9 8 9 8 1 9 4 5 9 7 2 3 1 6 1 9 1 1 9 2 2 5 0 7 2 3 2 0 8 7 6 8 4 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 7 7 0 7 9 4 8 1 2 1 3 1 4 9 3 8 5 1 8 7 9 3 9 1 2 4 7 5 5 8 8 3 9 7 6 8 3 2 8 9 4 9 4 4 3 5 4 0 7 7 6 9 5 2 0 8 5 7 6 6 0 0 8 4 5 0 3 1 5 2 1 0 9 5 7 3 6 9 1 3 1 5 9 0 3 6 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 7 6 5 5 5 4 4 4 4 4 4 4 4 3 4 2 3 3 2 3 1 1 2 2 1 1 1 1 1 2 0 0 5 1 5 6 8 3 3 1 5 6 1 2 5 1 7 2 3 5 5 0 0 8 4 7 3 7 , , , , , , , , , , , , , , , , , , , , , , , , , , , , . 8 1 0 3 3 4 5 2 0 7 7 9 2 1 2 4 9 4 8 0 0 9 0 6 7 1 5 9 4 8 8 1 8 3 4 8 2 8 4 1 9 0 3 8 0 4 4 6 3 1 6 4 6 9 4 6 3 5 4 8 1 4 7 9 4 1 0 0 8 5 0 6 0 3 9 8 2 9 7 4 8 3 4 2 7 4 4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 2 3 3 3 3 3 3 2 3 3 3 3 3 3 2 2 2 3 3 4 3 4 3 3 2 5 2 9 4 9 8 0 0 9 6 9 6 1 7 9 4 6 4 5 8 8 0 4 1 4 8 3 9 4 0 3 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 7 7 7 9 2 7 3 2 6 3 6 8 1 3 9 0 9 2 1 1 2 5 4 4 4 6 1 8 5 0 3 9 2 8 4 8 9 7 8 2 0 5 7 3 7 8 8 3 9 1 6 7 9 0 6 8 7 5 6 6 5 1 2 4 4 6 5 4 8 1 7 4 1 8 9 9 4 2 0 1 7 3 2 3 5 2 8 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 9 8 6 8 8 8 8 8 8 7 8 5 7 6 6 6 5 7 7 4 6 4 5 6 6 4 3 4 6 2 1 3 9 4 0 5 0 4 1 2 3 7 6 9 4 5 6 8 9 1 6 7 2 4 8 7 7 8 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 6 9 0 4 4 1 1 6 4 1 1 6 8 9 1 0 4 1 0 7 7 3 6 8 5 0 6 5 6 6 8 7 6 0 9 0 7 1 1 3 5 5 4 9 6 7 8 9 5 5 2 4 2 2 2 7 2 5 6 3 3 4 7 6 5 9 4 5 7 5 4 0 9 3 0 0 6 1 3 6 1 6 7 5 8 7 8 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 5 6 3 4 7 6 8 4 4 6 6 7 5 8 7 9 9 4 7 6 6 4 9 4 8 4 6 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 9 2 3 6 9 6 8 0 0 2 2 5 2 2 6 8 1 0 2 7 0 6 6 3 6 9 5 8 178983—20 24 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

364 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. FEDERALRESERVE BAM OF CLEVELANiD MOVEMENT OF EARNING ASSETS s DURING CALENDAR YEAR 1919. 5 UMTEDSTATES SECURITIES. too ACCEPTANCES BOUGHT 1 "• - so 60 40 20 O ' PERCENTA6E0FfVAR PAPER TO TOTAL DISCOUNTS, 200 200 ISO TOTAL BILLS DISCOUNTED, "D;ANDIVARPAPER7m 300 250 TOTAL EARN!PIG ASSETS. i$Ul^ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 4—GLEVEIAND. 365 fEDERALRESERVEBAHKOFCLEVELAND 13 NET DEPOSIT LIABILITY. I § fiR.NOTE CIRCULATION, CASH RESERVES.AND RESERVE RATIOJ9I9. TO PO 60 60 SO SO 40 10 & 30 20 20 10 10 0 0 RESERVE RATIO. (PERCENTA6E OFC+Ll 200 r.R. NOTE CIRCULATION. 4S0 460 400 400 350 350 300 100 50 /f/YP^ JAN. FEB. MCH. APRL MAT JUKE JULT AUG. SEPT. OCT. NOV. DEC. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT C.—Statement of condition of the Federal Reserve Bank of Cleveland. Dec. 31,1919. Dec. 31,1918. RESOURCES. Gold redemption fund, Federal Reserve notes. $1,872,462. 24 $1,368,280.00 Gold with Federal Reserve agent 128,704,225.00 138,277,370.00 Gold settlement fund 43,848,018. 81 52,125,485.35 Gold coin and certificates 4,870,097.50 12,865,862.50 Gold with foreign agencies 10,768,257.35 524,598. 71 Gold in transit for redemption 475,500. 00 391,322.50 Total gold reserve 190,628,560.90 205,552,919.06 Legal tender notes and silver certificates and coin. '635,770.45 850,959. 55 Legals and silver in transit for redemption 77,100.00 276,004.00 Total cash reserve. 191,341,431.35 206,679,882.61 Federal Reserve notes on hand 17,355,115.00 14,147.660.00 N Fe ic d k e e ra ls l a R n e d s e c r e v n e t s Bank notes on hand 46 1 0 , , 3 0 7 1 6 0 . . 1 0 5 0 869; 3 6 8 9 5 5 . .3 0 8 0 Our mutilated Federal Reserve notes forwarded for redemption 1,732,565.00 589.720.00 Due from Treasurer United States 5 per cent fund (Federal Reserve Bank notes) 1,122,000.00 531,800.00 O verdraf ts 39,976.71 1,725. 73 Total. 20,711,042.86 16,140,986.11 National bank notes and notes of other Federal Reserve Banks 3,456,640.00 4,275,119.00 Unassorted currency 3,185,787.00 Uncollected transit items 77,055,466.83 "58," 554^835.'47 Total deductions from gross deposits. 83,697,893.83 62,829,954.47 Bills discounted 63,043,012.89 28,412,284.55 Member banks' collateral notes 101,474,120. 00 77,339,400.00 Rediscounts for other Federal Reserve Banks 21,583,497. 09 Acceptances purchased 48,606,679. 40 37,445,215. 53 United States bonds and securities: 2 per cent Treasury special certificates of indebtedness to secure circulation 23,299,000.00 9,458,000.00 3 per cent 1-year Treasury notes ], 202,000.00 3 per cent conversion bonds 414,800.00 414,800.00 3-J per cent Liberty loan bonds 16,200. 00 266,200.00 4i per cent Liberty loan bonds 402,400.00 403,550. 00 3f per cent Victory loan bonds 10,100.00 4| per cent Victory loan bonds 150.00 U per cent certificates of indebtedness 284,000.00 1,065,500.00 Total earning assets 237,550,462. 29 177,590,447.17 Interest accrued on United States securities 226, 732. 80 58,514.53 War loan expenses advanced 330,385.98 766,785.38 Liberty loan bonds sold on installment plan to employees. 24,300.00 Other deferred charges 2,362.28 17,646.11 Difference account 193.76 Real estate owned 640,000.00 Total resources. 534,500,505.15 464,108,516.38 LIABILITIES. Federal Reserve notes outstanding 283,801,770.00 266,519,915.00 Federal Reserve Bank notes outstanding. 22,491,000.00 10,600,000.00 Total currency outstanding. 306,292,770.00 277,119,915.00 United States Government deposits 1,675,111.23 749,987.69 Member banks' reserve accounts 129,415,061.66 123,423.976.31 Contracts to deliver Liberty bonds sold employees. 13; 128.00 Official checks and drafts outstanding * 200,015.64 196,072.59 Foreign G overnment credits 5,928,112.60 Collected funds on deposit 137,218,301.13 124,383,164.59 Deferred availability items 71,603,531.00 49,581,406.40 Gross deposits 208,821,832.13 173,964,570.99 Reserved for taxes on Federal Reserve Bank notes.. 45,055.98 Reserved for depreciation on United States bonds... 89,450. 85 84,406.79 Reserved for Federal Reserve Board expenses, 1920. 46,554.88 Reserved for franchise tax 1 1 1,776,000.00 Capital paid in 9,532,950.00 9,072,700.00 Surplus fund 9,089,000.00 1,776,000.00 Unearned discount and interest 582,891.31 314,121. 08 Other liabilities (difference account) 802.52 Total liabilities. 534,500,505.15 464,108,516.38 1 This amount was transferred to surplus account Mar. 3, 1919, as provided by an amendment to the Digitized foFr eFdRerAalS REeRse rve Act approved that day. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5.—RICHMOND. CALDWELL HARDY, Chairman and Federal Reserve Agent. INTRODUCTION. The past year has been one of high prices, marked business activity and prosperity, the transactions of the Federal Reserve Bank reflecting these conditions and reaching unprecedented proportions. This increase is the natural sequence of high prices and the corresponding growth of business among its member banks. It evidences also the value of the service rendered to the member banks. Such irregularities and uncertainties as have existed have had no apparent effect in lowering prices or even checking advances in many cases. The progress of readjustment to normal prices and conditions has been disappointing. The decline in Government financing has not led to the liquidation of bank loans which should have been incident thereto. The year closes with banking and commercial credits expanded to such unprecedented proportions as to call forth repeated warnings from the Federal Reserve Board and banks. These have been followed by the raising of discount rates, with the view to checking further expansion, encouraging liquidation, and strengthening reserves. GENERAL REVIEW OF THE SERVICES AND ACTIVITIES DURING 1919. The discounting of paper is the most important service rendered to member banks, and the discount operations of the Federal Reserve Bank of Richmond during 1919 have therefore constituted the most important part of its activities and show a very large increase over the preceding year. At the beginning of the year 1919 there were 565 member banks. During the year there was an addition to membership of 19, making 584 members at the close. During the year, 415, or 72 per cent of the average number of member banks, were accommodated through the discount or purchase of paper, which aggregated in amount $4,184,000,000. In addition to this, $5,000,000 of paper was purchased from other Federal Reserve Banks, making the total volume of discount operations $4,189,000,000, as compared with $2,231,000,000 for the year 1918, an increase of 88 per cent. Of the total volume of paper discounted and bought during the current year, $3,983,000,000, or 95 per cent, was secured by Government war obligations. This high percentage is due to the fact that bills secured by Government war obligations are discounted for not exceeding 15 days and renewals are therefore more frequent. In evidence of this, the balance ol bills secured by Government war obligations held at the close of business December 31, 1919, were 67 per cent of our total bill holdings. It indicates that Government 367 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

368 ANNUAL REPOKT OF THE FEDERAL RESERVE BOARD. bonds have not been fully absorbed by the subscribers, loans on them being largely responsible for the continued expansion of credits, so much in evidence. The daily average amount of bills discounted and bought during 1919 was $13,871,000, compared with $7,339,000 for the year 1918. The clearing facilities offered its members by the bank are doubtless next in importance to the discounting privilege in point of service to them. Total clearings during 1919 almost doubled those of the year 1918. The transit department during 1919 handLed 20,934,355 items, amounting to a total of $9,304,179,945, as compared with 12,020,068 items, amounting to $7,113,475,300 in 1918. The average amount per item during 1919 was $445, as compared with $59l"during 1918. This is no doubt accounted for by collecting for a number of small new member banks and collecting on a considerably increased number of small banks which have been added to our par collection list. It may also be pointed out in this connection that the above clearing figures for 1919 do not include 79,627 cash letters containing approximately 5,000,000 items, amounting to $1,596,000,000, which were sent direct by our member banks to other Federal Reserve Banks and branches. As the direct routing of letters was not as much practiced during 1918 by our member banks, the clearing operations have in reality increased during 1919 to a larger extent than the above comparative figures would indicate. During 1919, we actually handled in our transit department a daily average of 69,319 items, amounting to $30,808,543, as compared with the daily average during 1918 of 39,540 items, amounting to $23,399,589. The largest number handled on any one day during 1919 was 122,529. In addition to the two foregoing functions, there are other very important services which have been rendered to the member banks in the fifth district in 1919, to a proportionately increased extent, viz: (a) Receipts and shipments of currency from and to banks in the fifth district. (b) The use of our private leased wires for the transaction of business wherever possible to do so. (c) Wire transfers of funds. (d) Payment of interest coupons from United States bonds. (e) The cutting and creditmg of interest coupons from bonds pledged with the Federal Reserve Bank as collateral or for safekeeping. (a) During the year 1919, the bank received $169,276,368 of currency from banks in the fifth district, and during the same period, shipped to banks in the fifth district $177,320,587. Of the above figures, $1,002,962 was received from nonmember banks and $344,679 was shipped to nonmember banks. It is apparent from these figures that practically all of this service was rendered to member banks and that nonmember banks were benefited to a negligible extent. (b) Our private leased wires were used freely for the benefit of our member banks, and wherever it has been possible to transact business for them over these wires the service has been rendered without cost to them. This system of leased wires between all Federal Reserve Banks and branches has made possible the collection of checks all over the United States for our member banks in approximately half the time necessary to collect items under the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5—RICHMOND. 369 old mail system. Checks on other Federal Reserve districts are cleared through the gold settlement fund, which is held by the Federal Reserve Board at Washington, in which each Federal Reserve Bank participates, and items on Federal Reserve Bank and branch cities are credited through this fund upon the day of receipt by the other Federal Reserve Bank or branch. During the year 1919 we received from other Federal Reserve Banks, through daily clearings, $5,575,000,000, and paid to other Federal Reserve Banks for items on the fifth district, through daily clearings, $5,472,000,000. It is also interesting to note that during the year 1918, we cleared through the gold settlement fund checks on other Federal Reserve Banks amounting to $2,401,000,000 and paid through this fund checks on the fifth district amounting to $2,328,000,000. The amount cleared in 1919 more than doubled the amount cleared in 1918 and evidences the increasing extent to which the facilities of the Federal Reserve Banks are being used by members. (c) During the year 1919 the Federal Reserve Bank of Richmond sent 21,935 messages to other Federal Reserve Banks and branches and to Government headquarters at Washington over its private leased wires, and, during the same period, received from the same Eoints 23,103 messages, making a total of 45,038 messages thus andled during the year. Of this total number of messages, 15,105, or 34 per cent, were messages transferring funds for account of our member banks, comprising 6,502 transfers for our member banks to banks in other Federal Reserve districts, amounting to $456,000,000, and 8,603 transfers to banks in the fifth district from banks in other Federal Reserve districts, amounting to $653,000,000. These amounts were transferred without delay and without cost to our members. (d) During the year 1919 the bank received and paid in number 1,913,883 interest coupons from United States securities aggregating $9,194,218. (e) During the same period our custodian of securities clipped 306,747 coupons amounting to $3,010,712 from securities in his possession, pledged by banks as collateral or for safe-keeping, and the amounts were credited to banks owning the securities without} trouble or expense to them. FINANCIAL RESULTS OF OPERATION. The financial operations during 1919 exceeded expectations, resulting in a very large increase in earnings. The total resources at the close of business December 31, 1919, were $312,867,517, while at the close of 1918 the total resources were $241,967,082, the increase during the following year being 29.3 per cent. Productive assets at the close of business 1919 were $134,901,780, and at the close of 1918 they were $97,724,639, an increase of 38.1 per cent. The increase in productive assets is reflected in gross earnings, which were $4,775,324 for 1919, as compared with $2,979,048 for 1918, an increase of 60.3 per cent. Expenses during 1919 were $911,927 and during 1918 expenses were $653,820, an increase of 39.5 per cent. It is noted that the ratio of increase in expenses has not kept pace with the ratio of increase in gross earnings. It is also interesting to note that while gross earnings increased 60.3 per cent, the avera Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. annual rate of earning on productive assets was less for 1919 than for 1918, being 0.0416 for 1919 and 0.0429 for 1918. Likewise the average rate of discount charged on notes discounted for members was reduced from 0.044 in 1918 to 0.043 in 1919. Surplus was increased from $1,156,270 at the close of 1918 to $5,820,463 at the close of 1919. While this is an actual increase in surplus of $4,664,- 193, a part of the increase consists of $1,039,799 reserved for franchise tax at the close of business 1918, which was credited to surplus account during 1919 because of a revision of the Federal Reserve Act. The balance of the increase consisted of profits for the year 1919. Surplus at the close of 1919 is approximately a million and a half dollars in excess of paid-in capital stock. Total investment operations during the year 1919 were $4,229,440,665, compared with $2,264,563,936 during 1918, an increase of 87 per cent. The following is a condensed statement of earnings and expenses for 1919: Daily Daily Total Annual holdings. earnings. earnings. e r a a r t n e i n o g f . Bills discounted $94,545,750 $11,233 $4,099,953 0.0434 Bills purchased 7,686,825 963 351,418 .0457 United States securities 9,206,479 508 185,293 .0201 Penalties and sundry profits.. 379 138,660 Total.. 111,439,054 13,083 4,775,324 Expenses 911,927 Net earnings. 3,863,397 DISCOUNT OPERATIONS. Discount operations during 1919 aggregated $4,130,942,910, of which $3,982,600,640, or 96.4 per cent, consisted of paper secured by Government war obligations. Four hundred and fifteen member banks were accommodated during 1919 through the discount or purchase of paper, which number is 72 per cent of the average number of member banks in the district during the year. During 1918, 373, or 66 per cent of member banks, were accommodated. Ninety-five per cent of paper handled during 1919 was discounted for a period of 15 days or less. Demands for credit by banks in this district during 1919 were probably heavier than in any other Federal Reserve district in proportion to the resources of the banks, and consequently the Federal Reserve Bank of Richmond drew upon the reserves of other districts to a larger extent than any other Reserve Bank. During the year it rediscounted with other Federal Reserve Banks $842,945,500 of members7 notes, the maximum amount under discount at any one time reaching $55,000,000. Member banks' liability for paper discounted reached the highwater mark the first part of August. At the close of business, August 4, members' paper discounted by or sold to the Federal Reserve Bank of Richmond amounted to $156,000,000, of which the bank had rediscounted $55,000,000 with other Federal Reserve Banks. On the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5—RICHMOND. 371 same date our members' reserves were $54,000,000, or less than onethird of their total discounts with us, and actually less than the amount we had rediscounted with other Federal Reserve Banks. The fact is that when the Federal Reserve Bank of Richmond had discounted for its member banks to its full limit, without impairing its required reserve, it was able to continue meeting the demands of its member banks by drawing upon the reserves of other districts, where demands were not proportionately as heavy, to the extent of $55,000,000. The continuous increase of Federal Reserve notes outstanding from the low point of $104,000,000 on August 21 to the peak of $149,000,000 on December 23 and some liquidation during September and October in bills discounted enabled the bank to retire by October 27 all of its rediscounts with other Federal Reserve Banks. Futher demands from members necessitated rediscounting on December 29 with other Federal Reserve Banks, and on December 31 the amount of such rediscounts was $10,000,000. ACCEPTANCES. During 1919 the bank rediscounted $9,082,378 of trade acceptances, a daily average for the year of $30,074. On December 31, 1919, the balance held was $2,320,376. Open-market purchases of bankers' acceptances amounted to $58,057,255, $5,079,873 of which were purchased from the other Federal Reserve Banks. The total amount is classified as follows: Foreign, $34,454,158; domestic, $23,603,097. RESERVE POSITION. Exhibit B gives an analysis by weeks of net deposits, Federal Reserve notes, reserves, and reserve percentages for the year 1919. Net deposits were highest in the month of November, while Federal Reserve note circulation was highest during the month of December. Our reserve position was highest during November, an average percentage of 0.5036. The following is a table of averages for the entire year of 1919: Net deposits $50, 852, 609 Federal Reserve notes, net 124, 318, 643 Combined deposit and note liability 175,171, 252 Actual reserves held 77, 911, 590 Percentage of reserve against combined liability 0. 4448 Percentage of reserve against Federal Reserve notes after fixing 35 per tent against deposits .' , . 4835 MOVEMENT OF MEMBERSHIP. The number of national banks has increased in the year from 528 to 538, and State bank membership from 37 to 46. Total stock subscriptions have increased during the year from 81,244 (50 per cent paid—$4,062,200) to 87,840 shares (50 per cent paid—$4,392,000). State institutions have been admitted to membership as follows: Overlea Bank, Overlea, Md.; The Citizens Bank, Blackstone, Va.; Commerce Bank & Trust Co., Charlottesville, Va.; Merchants & Farmers Bank, Emporia, Va.; Bank of Commerce & Trusts, Rich- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

372 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. mond, Va.; Independence Trust Co., Charlotte, N. C; The Peoples Bank, New Bern, N. C; Citizens Bank & Trust Co., Kock Hill, S. C; The Home Bank, St. Matthews, S. C. The capital and surplus of the nine new members is $1,928,000 and their total resources about $12,000,000. The number of nonmember banks in the district on December 31, 1919, is 1,480, of which about 600 have sufficient capital and surplus to make them eligible for membership. RELATIONS WITH MEMBER BANKS. The pressure for accommodation from some members has made the application of some restraint necessary, but all needs of the district have been liberally taken care of. During the year we have organized an efficient examination de- Eartment, have established cordial relations with the various State ank examiners of the district and also with the banks examined, and have made the following examinations: State bank members examined (joint with State authorities) 24 State bank members examined (by Federal Reserve examiners) 4 National banks examined (joint by national bank examiners and Federal Reserve examiners) 4 Total examinations by Federal Reserve examiners 32 (This number does not include four branches of member banks which have been examined by Federal Reserve examiners.) We have also given special attention to visiting members, and these visits have effected a better understanding of the Federal Reserve System. Three hundred and twenty-seven visits to 278 banks have been made by representatives of the Richmond bank (127 members and 151 nonmembers). Representatives of this bank also visited 16 of the principal cities in the district and explained to the representatives of 60 member banks the use of the immediate credit symbol. The immediate credit symbol is a copyrighted device, the use of which is granted to member banks under special contract. Customers' checks bearing the symbol are accepted for immediate credit and charged at once to the member bank's reserve account in accordance with the terms of the special contract. Authority to use the immediate credit symbol has been granted to 27 banks. During the year two State bank members filed notices of withdrawal from the Federal Reserve System and a third announced its intention of withdrawing and asked for instructions as to the procedure to be followed. In all three cases our representatives promptly called on the officers of the banks for the purpose of discussing the situation with them. A number of suggestions were made and a few small difficulties smoothed out. In all three cases the banks decided that it was to their interest to remain in the system. During the year representatives of this bank have appeared before the directors of five nonmember banks for the purpose of discussing State bank membership in the Federal Reserve System. Applications were received from all five banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5—RICHMOND. 373 NOTE ISSUES, The high-water mark with respect to Federal Reserve notes in circulation was reached on December 23 of both the years 1918 and 1919, and declined to a slightly smaller volume by December 31 of each year, as shown in the following table: 1918 1919 In circulation Dec. 23. $139,589,740 $149,396,320 Balance Dec. 31 137,478,030 145,765,320 These notes declined from $139,589,740 on December 23, 1918, to $137,478,030 on December 31, and continued to decline in volume until August 21, 1919, when they reached $104,071,515, which was low-water mark for the year. In 1919 they duplicated the previous year's movement by declining from $149,396,320 on December 23 to $145,765,320 on December 31, and it may be safely predicted that they will continue to decline during 1920, as they did during 1919, and reach low-water mark some time during the summer of 1920. Federal Reserve bank notes outstanding on December 31, 1919, amounted to $12,216,000, of which $158,050 were held by the bank, leaving a balance of $12,057,950 in actual circulation. These were secured by $12,260,000 United States 1-year certificates of indebtedness. INTERNAL ORGANIZATION. At the close of the year 1919 the number of employees of the bank was 401, which includes 103 at the Baltimore branch and 23 in the war loan organization.1 This number (401 employees) is composed of 179 men and 222 women. The continued growth of the bank has necessitated a corresponding expansion in its official and clerical force. The transit department alone has doubled its force from 79 to 157, and, in addition to other details, handled about 21,000,000 items, compared with about 12,000,000 in 1918. At the close of 1918, there were 254 employees, including 64 at the Baltimore branch. The increase in employees at the close of business, compared with the opening of the year, is 58 per cent. During the year the following additions were made to the official force: Edward Waller, jr., assistant cashier, and J. S. Walden, jr., auditor, vice W. E. Cadwallader, comptroller, retired. John F. Bruton, of Wilson, N. C, was reelected a class A director for a period of three years, to succeed himself, and James F. Oyster of Washington, D. C, was reelected a class B director for a period of three years, to succeed himself. The bank has continued to occupy the two store buildings, Nos. 1107 and 1109 East Main Street, with its bond delivery department at No. 1016 East Main Street and its war loan organization at No. 809 East Main Street. These quarters, which were referred to in the 1918 report as being inadequate, have become increasingly so, i The war loan organization was materially reduced at the end of the year 1919. In July of that year, there were approximately 100 employees engaged in the work. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

374 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. and necessarily hamper efficiency in the handling and dispatch of business, to say nothing of comfort and hygienic conditions. Plans for the erection of an adequate building at the corner of Franklin and Ninth Streets, referred to in the last annual report, were adopted in the spring, and the necessary expenditure of about $1,500,000, including vaults, mechanical equipment, furniture, and fixtures, was authorized by the Federal Reserve Board. A contract for the work was entered into and work commenced early in June. BALTIMORE BRANCH. The volume of business transacted by the Baltimore branch during the past year, which is included in the total transactions of the bank, shows a large increase, corresponding in proportion to the general business throughout the district. This increase has necessitated corresponding additions to the force, which has been increased from 64 on January 1 to 101 at the close of the year, 51 of whom are men and 50 women. During the year 58 banks in West Virginia, chiefly along the line of the Baltimore & Ohio Railroad, have been authorized to transact their business with the branch, and the facilities offered these banks and the banks in Maryland have apparently been very satisfactory to them. GOLD SETTLEMENT FUND. The operations in the gold settlement fund during the year 1919 have shown an immense increase. During the year 1919 we received through this fund $6,521,746,000 and disbursed $6,510,799,000. These figures compare with $2,530,904,000 of receipts and $2,538,- 751,000 of disbursements during the year 1918. It will be seen that the amounts for 1919 are more than two and a half times those for 1918. The Federal Reserve Bank clearings through this fund amounted to $11,046,630,000, as compared with $4,729,196,000 for the year 1918. CAMPAIGN FOE PAR POINTS. While progress in the direction of universal par collection has been rapid in all parts of the district, there are still a considerable number of banks in the Virginias and Carolinas that have not yet signified their willingness to do their part in bringing about the universal par collection of checks. The District of Columbia has been all par since shortly after the inauguration of the Federal Reserve System, and the State of Maryland (with 264 banks) became all par during July, 1919. The following statement clearly shows the present situation for the whole country, and the progress that is being made: Of the 29,586 banks and bankers in the country, 25,571 are on the par list. Checks drawn on all banks and bankers situated in 31 States are now collectible at par, as compared with 17 States a year ago. Six Federal Reserve districts out of 12 are now all par. This means that items drawn on over 86 per cent of the total number of banks and bankers throughout the entire country can be received for collection and credit by the Federal Reserve Banks. During the calendar year 1919 6,581 banks were added to the par list, leaving only 4,015, or 14 per cent of the whole, whose checks can not yet be collected at par. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5—RICHMOND. 375 Summary of activities. 1919 1918 Paper discounted and bought $4,189,000,165 $2,230,942,037 Banks accommodated (number) 415 373 Investments in United States securities $40,440,000 $33,621,900 Clearings with other Federal Reserve Banks through gold settlement fund... . . .. . . .. $11,046,630,000 $4,729,196,000 Transit operations: Number of checks . 20,934,355 12,020,068 Amount $9,304,179,945 $7,113,475,300 Currency receipts: From banks in fifth district $169,276,368 From other Federal Reserve Banks $70,805,815 $31,113,635 Currency shipments: To banks in fifth district $177,3r0,587 To other Federal Reserve Banks $72,911,000 $26,603,050 Telegraphic transfers of money for member banks: Number .. 15,105 Amount $1,108,348,803 Total number of telegrams sent and received over private wire 45,038 Bond coupons clipped for customer banks: Number 306,747 Amount $3,010,712 Interest coupons from United States securities received and paid: Number 1,913,888 Amount $9,194,218 FISCAL AGENCY OPERATIONS. The scheme of organization for the Victory Liberty loan differed from that followed in previous campaigns in being under the active direction of a volunteer chairman, appointed by the governor of the Federal Reserve Bank, and in having a much larger executive staff of paid workers at district headquarters than in any previous campaign. This paid organization numbered at one time approximately 100 people, including some 25 traveling representatives, together with branch offices in Washington, Baltimore, and Huntington. After the Victory loan was over and the war savings movement was better organized, this paid staff was gradually reduced to 24 people, beginning with January 1, 1920. As was the case in the fourth loan, the county was made the unit of organization during the Victory loan, the chairmen for the counties being appointed by the State chairmen subject to the approval of the district chairman. Each of the county chairmen appointed committees to look after the publicity, the securing of subscriptions, and the handling of all wTork in connection with the loans in their respective counties. District chairmen were appointed by several of the State chairmen to supervise the work in groups of counties. Before the beginning of the Victory Liberty loan campaign each State in the district held a conference of its Liberty loan workers and plans of organization were thoroughly worked out and definitely decided upon. All the State and local chairmen were volunteers, quite a number of whom not only contributed liberally of their time but also paid considerable portions of the expenses incident to their work. Apportionments to the Victory Liberty loan were assigned to all individual banking institutions and trust companies of the district based on total banking resources as of December 31, 1918, the latest Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 ANNUAL BEPORT OF THE FEDERAL RESERVE BOARD. figures available. The county apportionments were based on the total banking resources of the counties and on population. The fifth district's quota for the Victory loan was $210,000,000; the district's subscriptions aggregated $225,146,850, an oversubscription of 7.2 per cent. The number of subscribers totaled 574,967. The following table gives the record of the fifth district as a whole in each of the five Liberty loans: Per cent ol Quota. Subscribed. quota subscribed. First loan $88,000,000 $109,737,100 124.6 Second loan 120,000,000 201,212,500 167.6 Third loan 130,000,000 186,259,050 143.3 Fourth loan 280,000,000 352,685,200 125.9 Victory loan 210,000,000 225,146,850 107.2 Total 828,000,000 1,075,040,700 129.8 During 1919, United States Treasury certificates of indebtedness issued in anticipation of the Victory Liberty loan, of 1919 taxes, of 1920 taxes, and of 1920 loans wTere sold in an aggregate total of $306,575,000, while subscriptions to Victory notes allotted aggregated $210,889,300. War savings stamps, thrift stamps, and Treasury savings certificates were sold through the Federal Reserve Bank (exclusive of post office sales) in an aggregate amount of $499,383.69. This makes a total aggregate subscription to Government securities during the year of $517,963,683.69, exclusive of War Finance bonds sold totaling $3,545,000. GENERAL BUSINESS AND BANKING CONDITIONS. Unprecedented prosperity has been the outstanding characteristic of business—agricultural, commercial, and manufacturing—throughout the district during the past year. In the agricultural portion of the district this has resulted primarily from the high prices realized from cotton at 35 to 40 cents per pound, high grades and long staples selling for double these prices, and tobacco at 30 to 50 cents per pound, high grades selling up to $1 and more per pound. Cotton products have sold at proportionately even higher prices, yielding enormous profits to manufacturers, and mill properties and shares have changed hands at dangerously speculative prices. Sales of farm lands have been active at an advance over normal prices, based on the inflated value of crop returns for the year. These operations have created a large volume of farm paper, and more of this than is desirable has probably found its way into the banks. The year closes with a realization of the necessity for the curtailing of credits, but with confidence in the fundamental soundness of general business and the belief that conservatism in the direction of our affairs will insure satisfactory results for the coming year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5—RICHMOND. 377 EXHIBIT A.—Movement of 'principal earning assets of the Federal Reserve Bank of Richmond during the calendar year 1919. [In thousands of dollars.] Dis- Date. c p c U u a o r p n u e e i n d r t t e e b s d d e y - O c p t o h a u e p n r e t d e r. i d s- 1+2. Pe 1 r + c 3 e . nt i b n o B o u il p g l e s h n t b c i o T l a u l o s n n t d d t a e i l s d - se U S cu n ta r i i t t t e e i s d es. e a a T s r o s n e t i a t n s l g . States market. bought. war obligation?. Jan. 3 71,989 14,088 86,077 83.6 5,943 92,020 98,053 Jan. 10.... 77,936 12,732 90,668 86.0 6,470 97,138 8,533 105,671 Jan. 17.... 75,206 11,877 78,073 86.4 7,134 94,217 6,533 100,750 Jan. 24.... 83,296 12,560 95,856 86.9 7,433 103,2S9 6,533 109,822 Jan. 31.... 70,034 13,040 83,074 84.3 7,614 90,688 6,533 97,221 Feb. 7 77,286 12,563 89,849 86.0 7,714 97,563 6,533 104,096 Feb. 14.... 81,019 12,008 93,027 87.1 7,619 100,646 6.533 107,179 Feb. 20.... 84,477 11,480 95,957 88.0 7,085 103,042 6; 609 109,651 Feb. 28.... 89,636 10,913 100,549 89.1 7,134 107,683 6,609 114,292 Mar. 7 78,761 11,671 90,432 87.1 6,568 97,000 6,609 103,609 Mar. 14.... 77,348 10,649 87,997 87.8 6,610 94,607 6,609 101,216 Mar. 21.... 86,799 11,898 98,697 87.9 6,932 105,629 6,609 112,238 Mar. 28.... 86,556 13,798 100,354 86.2 7,155 107,509 6,609 114,118 Apr. 4 86,182 12,902 99,084 87.0 7,420 106,504 113,113 Apr. 11.... 89,157 11,112 100,269 88.9 7,170 107,439 114,033 Apr. 18.... 83,680 9,472 93,152 89.8 6,705 99,857 106,451 Apr. 25.... 91,138 11,692 102,830 88.6 7,474 110,304 6,594 116,898 May2 86,677 12,010 98,687 87.8 7,578 106,265 6,594 112,859 J J J J J J A J J S S M A A A S M M M A u u u u u u u u e e e u u u u u a a a n n n n l l l l a p p p g y y y g y g g g y y y e e e e y t t t . . . . . . . . 9 2 1 1 3 2 1 2 6 2 2 5 8 2 1 2 1 1 1 1 5 1 8 9 6 7 3 0 3 5 9 2 . . . 2 9 . . . . . . . . 5 . . . . . . . . . . . . . . . . * . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 7 8 7 7 8 7 8 7 7 7 7 7 7 7 8 8 8 8 5 2 3 3 2 7 2 3 3 8 6 6 6 7 1 2 1 7 5 4 , , , , , , , , , , , , , , , , , , , , 1 2 3 0 2 7 1 3 9 4 7 2 1 4 4 5 6 8 6 7 4 7 9 5 4 2 4 4 3 2 9 2 1 3 4 2 9 5 7 6 3 3 5 3 1 1 6 9 9 5 6 2 3 2 8 6 4 2 7 4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 4 6 4 9 2 3 4 2 3 4 5 2 5 2 1 1 2 1 3 , , , , , , , , , , , , , , , , , . , , 8 2 3 2 6 5 9 8 5 8 1 8 5 0 1 5 2 9 1 5 4 2 5 0 1 7 4 9 2 0 8 8 4 6 3 8 5 3 9 4 1 6 3 3 6 2 7 5 6 6 8 5 7 0 8 7 6 7 0 7 3 9 9 9 9 9 8 9 8 9 9 9 9 8 9 8 8 8 8 8 1 9 1 7 5 4 2 9 1 9 7 3 8 8 4 7 7 9 8 8 , , , , , , , , , , , , , . , , , , , 7 5 8 8 8 6 9 8 6 4 8 3 9 8 5 1 2 0 9 2 2 2 9 9 3 4 0 6 0 0 3 6 1 8 7 2 7 9 6 2 0 1 3 1 1 5 1 9 3 1 9 3 0 4 5 4 0 7 8 4 8 8 8 8 7 7 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 3 9 5 6 1 8 4 3 3 6 3 6 6 7 3 3 2 5 7 8 8 . . . . . . . . . . . . . . . . . . . . . 9 0 5 2 9 7 5 5 1 2 2 2 7 7 9 5 1 0 8 4 1 5 6 6 7 7 7 7 7 6 7 7 7 6 6 8 7 7 7 7 7 6 , , , , , , , , , , , , , , , , , , , , , 9 3 2 7 2 0 4 1 9 3 2 7 9 8 4 7 9 7 0 5 6 2 8 1 5 6 9 8 0 9 9 4 2 4 7 1 6 7 8 6 5 6 9 2 2 4 4 0 7 2 3 4 5 0 1 0 3 1 8 3 8 5 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 9 7 8 5 5 7 5 4 4 7 7 8 8 3 0 1 0 6 5 4 , , , , , , , , , , , , , , , , , , , , 5 1 6 9 7 0 3 9 9 1 2 9 8 5 3 6 8 4 4 9 0 8 6 1 7 7 9 5 0 1 3 3 9 8 8 4 0 5 1 6 3 1 3 9 9 0 5 5 5 2 8 7 7 1 6 2 0 7 8 4 1 1 1 1 1 8 9 9 0 7 7 7 8 9 9 0 0 6 6 7 7 7 8 1 0 , , , , , , , , , , , , , , , , , , , , 7 1 2 2 7 7 9 6 0 5 4 0 2 0 4 8 6 6 5 3 2 2 2 2 2 2 2 4 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 4 4 4 4 4 4 4 4 4 4 4 4 4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 1 2 4 9 3 7 7 2 9 7 6 8 2 8 3 7 3 7 7 8 8 1 , , , , , , , , , , , , , , , , , , , , , 9 4 5 9 7 8 5 4 3 0 7 8 7 0 5 1 1 7 6 8 0 1 1 8 5 9 8 4 6 1 5 9 7 2 4 0 3 1 8 5 9 3 1 3 1 1 9 9 1 7 0 7 7 5 6 9 8 6 2 0 8 4 4 Sept. 26... 72,097 20.191 92,288 78.7 6,022 98,617 11,294 113,227 Oct.3 75,099 20,312 95,411 81.2 5,663 101,433 11,794 117,169 Oct. 10 80,471 18,641 99,112 82.1 5,577 104,775 12,394 119,382 Oct. 17.... 83,178 18,013 101,191 83.4 5,357 106,768 12,594 121,156 Oct. 24.... 85,780 17,125 102,905 85.5 5,883 108,262 12,894 121,191 Oct. 31 87,627 14,787 102,414 87.0 6,469 108,297 12,894 116,609 Nov. 7 84,580 12,666 97,246 87.3 6,835 103,715 12,894 119 031 Nov. 14... 86,531 12,571 99,102 87.1 7,175 105,937 13,094 117,853 Nov. 21... 84,986 12,598 97,584 85.4 11,810 104,759 13,094 122,805 Nov. 28..., 83,560 14,340 97,900 84.6 12,004 109,710 13,095 125,3U1 Dec. 5 84.478 15,324 99.802 84.8 13,241 111, 806 13,495 134,564 Dec. 12 91,548 16,280 107,828 82,3 14,394 121,069 13,495 136,474 Dec. 19 89,406 19,179 108,585 80.9 16,031 122,979 13,495 138,187 Dec. 26.... 87,901 20,760 108,661 124,692 13,495 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

378 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. FEDERALRESERVEBAMOFniCHMOnD 1 5: MOVEMENT OF EARNING ASSETS DURING CALENDAR YEAR 1919. *!" 14 25 25 UO UNITED STATES SECURITIES. 25 25 ACttFTAHCES BOUGHT. zoo 80 60 40 PERCENTAGE OEWARFAPER TO TOTAL D1SCOVT1TS TOTAL BILLS DISCOUHTED, -D/A/ID WAR PA PER;W; TOTAL EARNING ASSETS. \FCB\Maf\A/^L\M^ \ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5 RICHMOND. 379 fEDERALRESEWE BANK OF RICHMOND NET DEPOSIT LIABILITY. i t.R NOTE CIRCULATION. CA5HRESERYE5.ANDRESERVERATtO.l9l9. '/O 70 60 60 50 50 40 30 30 20 2O JO 10 0 RESERVE MT!O, (PERCENTA6E0FC+L) PEPOSITAW FR NOTE LIABILITIES, "L\ ANP TOTAL RESERVES;C*. 178983—20 25 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

380 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT B.—Movement of gold and cash reserves, Federal Reserve note and net deposit liabilities, and the reserve percentage of the Federal Reserve Bank of Richmond during the calendar year 1919. [In thousands of dollars.] 6 Ratio of cash reserves Federal to net Date. res G e o rv ld es. re C se a r s v h es. n R a o e c t s t e e u s r a v i l n e dep N o e s t its. 3+4. de a p n o d sit circula- Federal tion. n R o e t s e e l r i v a e bilities combined Jan. 3... 79,793 79,966 137,582 33,144 170,726 46.8 Jan. 10.. 78,960 79,166 137,822 37,461 175,283 45.2 Jan. 17.. 71,288 71 528 136,403 25,710 162,113 44.1 Jan. 24.. 70,886 71,074 133,727 36,718 170,445 41.7 Jan. 31.. 77,328 77,551 136,070 29,072 165,142 47.0 Feb. 7... 72,926 73,130 133,892 32,530 166,422 43.9 Feb. 14.. 79,483 79,714 130,958 45,018 175,976 45.3 Feb. 20.. 76,140 76,404 130,661 44,189 174,850 43.7 Feb. 28.. 72,246 72,499 128,595 46,596 175,191 41.4 Mar. 7... 84,455 84,691 128,544 48,415 176,959 47.0 Mar. 14.. 87,864 88,023 127,679 50.011 177,690 49.5 Mar. 21.. 94,779 95,212 127,441 68,467 195,908 48.6 Mar. 28.. 74,696 75,054 426,198 51,198 177,396 42.3 Apr. 4... 73,833 74,317 128,946 47,327 176,273 42.2 Apr. 11.. 73,775 74,322 127,604 48,855 176,459 42.1 Apr. 18.. 72,392 72,979 125,792 42,474 168,266 43.4 Apr. 25.. 68,946 69,489 125,391 49,383 174 774 39.8 May 2... 71,163 71,720 123,311 49,523 172,834 41.5 May 9... 73,699 74,148 121,152 53,977 175,129 42.3 May 16.. 70,335 70,659 118,764 52,639 171,403 41.2 May 23.. 71,667 72,103 115,902 51,504 167,406 43.1 May 29.. 68,914 69,313 115,484 49,140 164,624 42.1 June 6... 66,854 67.253 114,780 45,913 160,693 41.9 June 13. 69,528 69,933 112,964 52,923 165,887 42.2 June 20.. 79,641 80,091 110,852 69,247 180,099 44.5 June 27. 67,215 67,667 109,630 48,461 158,091 42.8 July 3... 66,527 66,970 109,640 -46,789 156.429 42.8 July 11.. 65,592 66,087 107,699 48,105 155^ 804 42.4 July 18.. 68,905 69,408 106,877 55,809 162,686 42.7 July 25.. 65,316 65,840 105,735 58,783 164,518 40.0 Aug. 1.. 65,291 65,814 105,425 53,096 158,521 41.5 Aug. 8.. 65,724 66,234 105,897 53,391 159,288 41.6 Aug. 15. 66,933 67,417 104,489 56,608 161,097 41.8 Aug. 22. 65,294 65,728 104,455 51,075 155,530 42.3 Aug. 29. 67,017 67,466 104,673 56,566 161,239 41.8 Sept. 5.. 64,648 65,141 107,702 48,871 156,573 41.6 Sept. 12. 72,841 73,315 108,646 56,277 164,923 44.5 Sept. 19. 74,910 75,326 111,736 55,592 167,328 45.0 Sept. 26. 73,153 73,521 115,100 50,976 166,076 44.3 Oct. 3... 76,986 77,224 121,695 51,186 172,881 44.7 Oct. 10.. 80,210 80,435 126,448 52,748 179,196 44.9 Oct. 17.. 83,615 83,806 131,791 52,717 184,508 45.4 Oct. 24.. 90,267 90,490 135,114 57,543 192,657 47.0 Oct. 31.. 96,883 97,113 138,592 60,471 199,063 48.8 Nov. 7.. 104,976 105,171 141,365 61,426 202,791 51.9 Nov. 14. 104,425 104,601 141,311 62,694 204,005 51.3 Nov. 21. 99,500 99,698 142,403 56,251 198,654 50.2 Nov. 28. 99,670 99,881 141,556 61,132 202,688 49.3 Dec. 5... 93,621 93,830 142,296 57,996 200,292 46.8 Dec. 12.. 91,083 91,262 143,774 61,706 205,480 44.4 Dec. 19.. 93,235 93,421 147,427 61,639 209,066 44.7 Dec. 26.. 81,543 81,731 148,693 51,091 199,7*4 40.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5—RICHMOND. 381 EXHIBIT C.—Comparative statement of condition of Federal Reserve Bank of Richmond. Dec. 31, 1919. Dec. 31, 1918. RESOURCES. Reserves: Gold coin and certificates $2,419, 725.00 $2,358,470.00 Gold settlement fund—Federal Reserve Board. 25,201,328. 28 14,253, 728.99 Gold with foreign agencies 6,434,690.37 204,010.61 Total gold held by bank 34,055, 743. 65 16,816,209.60 Gold with Federal Reserve agent 39,998,970.00 62,990.765.00 Gold redemption fund, Federal Reserve notes. 7,196, 777. 49 5,368,300.00 Total gold reserves 81,251,491.14 85,175,274. 60 190,339. 55 223,543.45 Legal tender notes, silver, etc. Total reserve; 81,441, 830. 69 85,398,818. OS iSarning: assets: Bills discounted—secured by Government war obligations.. 81,506,691. 34 72,434,331.75 Bills discounted—all other 23,495,584.34 13,806,940. 90 Bills purchased in open market 16,404,904.82 5,465,166. 23 Total bills discounted and bought 121,407,180. 50 91,706,438.88 United States Government bonds and Victory notes. 1,234,600.00 1,234,200.00 United States certificates of indebtedness 12,260,000.00 3,885,000.00 United States 1-year Treasury notes 899,000.00 Total earning assets 134,901,780.50 97,724,638.88 Uncollected items: Currency of other banks and unassorted currency. 4, 742,114.00 5,918,780. 00 Checks and other cash items 154, 714. 81 140,093. 54 Exchanges for clearing house 5,113,094.03 5,435,763. 87 Transit items 84,182,455.68 46,207,939. 84 Total uncollected items 94,192,378. 52 57,702,577.25 Miscellaneous: Interest accrued on United States securities 106,576.81 22,159.86 Advances to Government committees 514,860. 47 345,436.19 Redemption fund—Federal Reserve bank notes. 643,300.00 309,900.00 Bank premises 504,024. 50 290,000.00 All other resources 562, 765. 66 173,551.58 Total miscellaneous assets. 2,331,527.44 1,141,047.63 Total resources 312,867,517.15 241,967,081. 81 LIABILITIES. Capital: Capital paid in. 4,392,000.00 4,062,200.00 Surplus 5,820,462. 63 1,156,270.50 Total capital and surplus.. 10,212,462.63 5,218,470.50 Deposits: United States Treasurer 2, 839, 730. 49 2,795,094.97 Member banks—reserve accounts 62,712,122.52 54,161,937. 72 Foreign Governments 3,542,408. 75 Due Federal Reserve banks—collected funds. 33, S00,592. 08 12,512,777. 25 Cashier's checks 72,560. 32 111,319.95 Deferred availability—uncollected funds 41,522,428.74 24,390,387. 26 Total gross deposits. 144,489, 842. 90 93,971,517.15 Note circulation: Federal Reserve notes in actual circulation. 145, 765,320.00 137,478,030.00 Federal Reserve bank notes in circulation.. 12,057,950.00 4,005,500.00 Total notes outstanding. 157, 823,270. 00 141,483,530.00 Miscellaneous: Reserve for Federal Reserve Board assessment. 25,531.16 Reserve for expenses accrued and unpaid 20,316. 50 Reserve for franchise tax 1,039,798.76 Reserve for other taxes 19,970. 00 Unearned discount 260,184. 59 190,567.40 All other liabilities 15,939.37 63,198.00 Total miscellaneous liabilities. 341,941. 62 1,293,564.16 Total liabilities 312,867,517.15 241,967,081. 81 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6—ATLANTA. JOSEPH A. MCCORD, Chairman and Federal Reserve Agent. INTRODUCTION. The operations of the Federal Reserve Bank of Atlanta during the period of readjustment since the armistice and for the year 1919 nave been more active than during the war period of 1918. Expansion in all lines had made heavy demands on the banking interests, which, in part, have been met by the increased deposits of banks, while it has been left for the Federal Reserve Bank of Atlanta to make up the deficiency. The result has been an increase in the loans to and rediscounts for member banks over the amounts held during the latter months of 1918 and the early months of 1919. Increase in Government-secured obligations is due partially to the notation of the Victory loan and partially to a general demand for commercial, industrial, and agricultural purposes, the banks using their Government collateral for these purposes in order to secure the lower rate of discount. Demand from the member banks for other classes of discounts is attributed to business expansion and higher prices rather than to a speculative demand, which so far as has been observed is negligible throughout the district. • During the month of December there was considerable liquidation by the members of this district, resulting in increased reserves for the Federal Reserve Bank of Atlanta, and placing it in a position to rediscount for other Federal Reserve Banks. The increase of nearly every item on the balance sheet for 1919 is an indication of the increasing use by member banks of the facilities offered by the Federal Reserve Bank of Atlanta. More detailed information will be given under appropriate heads and schedules. REVIEW OF SERVICE. Member banks throughout the district are taking advantage of the facilities offered more than ever before. Member and nonmember banks were advised, effective March 17, that ,when their relations with this bank or its branches made it necessary to ship currency for credit or in payment of cash letters, charges would be absorbed by the Federal Reserve Bank of Atlanta, and also that charges would be absorbed for all shipments to member banks on currency shipped them by this bank or its branches. On March 31, 1919, the member banks of the district were advised that the Federal Reserve Bank would absorb the cost of telegrams instructing charges to their accounts, viz., (a) shipments of currency; (6) credit to another member bank; (c) and the continuance of 383 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

384 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. transfer of funds for credit with any member bank of any other Federal Keserve Bank; and when certified to, charges would be absorbed for messages instructing any member bank in the United States to make transfer of funds through the Federal Keserve Bank of its district to us for credit of our member. During the year there have been many other improvements of service to the member banks, and it is believed that the year just ended has shown the real value of the Federal Reserve System. FINANCIAL RESULTS OF OPERATION. A comparative statement of the condition of the Federal Reserve Bank of Atlanta as of December 31, 1918 and 1919, is shown in Exhibit C of this report. The total resources at the close of business December 31, 1919, show 37 per cent, or $76,447,455.27 increase as compared with 1918. By referring to the exhibit mentioned it will be noted that practically all of the items on the statement of condition show increases. Gross earnings for 1919 totaled $4,416,001 and show an increase of 92 per cent, or $2,122,942.71 over the preceding year, while total expenses, $972,217, show an increase of $331,946.07, or 52 per cent. After deducting all expenses, dividend payments, and amounts authorized by the Federal Reserve Board to be reserved, $3,185,000 was carried to surplus fund. This amount is an increase of $1,715,000, or 116 per cent, as compared with the previous year. DISCOUNT OPERATIONS. Puring the year 1919 the discount operations of this bank have been very active. Out of the 427 member banks in this district more than 200 have had paper under discount at all times. During the month of June the maximum number of banks were accommodated, being 265. The maximum number of items handled was reached in September, when 5,650 notes were discounted. Exhibit A, "Movement of earning assets," shows a distribution of earning assets by weeks and also the ratio of assets secured by war obligations to the total holdings of discounted paper. Particular attention is called to this percentage. In January, 1919, the percentage was 64 and gradually increased to 87 per cent on August 8; from that date on a decrease is shown in the percentage, and at the end of December it was only 68 per cent. This reflects a gradual liquidation of loans secured by war obligations. The rediscounts of commercial paper for the year, while not as heavy as that secured by war obligations, have been very active, particularly during September, October, and November. During the month of December there was a very decided liquidation in this class of paper, the total amount in November being $34,000,000 and for December only $9,000,000. Discount holdings of this bank have been largely secured by Liberty bonds and Treasury certificates. This, however, does not indicate that the proceeds of the notes discounted were used entirely for Government financing. For a greater part of the year there has been a preferential rate of one-half to tnree-fourths per cent on notes secured by Government obligations, and it is, therefore, obvious Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6—ATLANTA. 385 that member banks, when in need of funds to care for the commercial or agricultural requirements of their community, rediscounted paper secured by war obligations instead of commercial paper because of the differential rate. ACCEPTANCES. Trade acceptances.—Trade acceptances are now being generally used throughout the district and their use is becoming broader as the business interests recognize and appreciate the advantage of securing acceptances in settlement of shipments, instead of opening book accounts and giving future dating. In order to encourage the use of trade acceptances in this district, they have enjoyed when offered to this bank for discount a rate of one-fourth of 1 per cent less than the prevailing rate on commercial paper. Growth of open market for acceptances.—The development of an open market for bankers' acceptances in this district has not progressed to any great extent, the only market for bankers7 bills being the Federal Reserve Bank of Atlanta. Banks that extend acceptance credit also obligate themselves to sell the bills for the account of the drawer. It has been difficult to educate them to the idea of lending their credit in accepting drafts, charging the customary fee and requiring the drawer to sell the bill in the open market. Policy regarding acceptance purchases.—The policy of this bank now is to purchase bankers' bills from the accepting bank, and on account of this policy it is required that banks offering their own acceptances for purchase must attach the documents when the amount of such bills of one drawer is in excess of 10 per cent of the capital and surplus of the offering bank. However, to discourage member banks from offering their own acceptances to this bank for purchase, a differential is made in the rate of acceptances of this kind; that is, acceptances purchased from the accepting bank are discounted at a rate higher than if they were offered and indorsed by a bank other than the accepting bank. It is hoped that the difference in rate will encourage the drawer to seek an open market for bankers' bills and thus create and establish a real open market for bankers' bills in this district. RESERVE POSITION. Due to discount accommodation required by member banks, because of the large amount of Government securities carried, as well as the large volume of cotton and other products awaiting ship bottoms for export, it was necessary during the first five weeks of 1919 that our reserve position be maintained through the rediscount of bills with other Federal Reserve Banks. Shipping then having become available, commodities began their movement to foreign ports, with accompanying liquidation of loans and increase in the deposits of member banks, which in turn enabled us to liquidate our rediscounts and to maintain our reserve position without assistance. From the early part of February until the latter part of August our reserve position remained steady, fluctuating between 42 per cent and 49 per cent. After that time the discount demands of our member banks to replenish reserves depleted by withdrawals of deposits, together with the additional loan accommodation necessary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

386 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. to aid in the movement of the new crops, again compelled us to rediscount with other Federal Eeserve Banks to maintain our reserve position. Toward the middle of October, a sufficient volume of the crops having been marketed, a period of liquidation set in, which enabled us to discharge our liability on account of rediscounts and materially improve our reserve position. Subsequent liquidation so strengthened our position that during the last two months of the year we were amply able to care for the abnormal demands of our member banks located in port cities, whose reserves were temporarily frozen by reason of loans that were necessary in order to carry cotton which was being received at the ports, but could not be shipped because of labor disturbances. The close of the year found our reserve position strong, enabling us comfortably to care for the essential needs of our own member banks, as well as to give aid to other sections of the country if necessary. MOVEMENT OF MEMBERSHIP. National hanks.—On December 31, 1918, the national bank membership was 372. During the year 13 new national banks were added to the membership and 22 national banks withdrew by liquidation, resulting in a net loss of national bank membership of 9. Of the 13 national bank additions, 8 were new banks and 5 were State banks converted into national banks. The decrease of 22 national bank members is accounted for as follows: One liquidation, 1 absorbed by a national bank, 8 absorbed by State banks, and 12 succeeded by State banks. State hanks.—On December 31, 1918, 54 State banks and trust companies were reported to be members. During the year 1919 there have been 16 additions to membership and 6 withdrawals, or a net increase of 10 State bank and trust company members for the year. Fifteen of the State bank admissions were new members and one was the result of two State bank members consolidating. Besides these two banks reported as a consolidation, one was absorbed by a national bank and three withdrew from membership. Practically all of the largest State banks and trust companies in the district are now members, there being only one bank in the district with a capital and surplus of $1,000,000 or more that is not a member. There were no failures among the membership of the Federal Reserve Bank of Atlanta during 1919. RELATIONS WITH NATIONAL BANK MEMBERS. Discount operations.—Naturally the largest part of rediscount transactions has been for national bank members, and through rediscount privileges the member banks have been assisted in taking care of the increased volume of business, which almost all of them have had. U Trustee powers.—Fiduciary or additional fiduciary powers authorized under section 11, subsection (fc),of the Federal Reserve Act, have been granted to 22 national banks during the year. There is an apparent inclination on the part of the national banks to broaden their functions, although so far this has not been as marked under Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6—ATLANTA. 387 the prevailing conditions of the past year as is anticipated it will be when conditions become more normal. Fiduciary powers have been granted to national banks in the States of the district as follows: Alabama, 14; Florida, 7; Georgia, 8; Louisiana, 3; Mississippi, 4; Tennessee, 10. RELATIONS WITH STATE BANKS AND TRUST COMPANIES. Discount operations.—In common with the national bank members, the State bank and trust company members have rediscounted throughout the year very freely. Examinations.—All State banks and trust companies applying for membership have been examined, with the exception of newly organized banks which were admitted upon their organization certificate. The superintendents of banks have all expressed their willingness to cooperate and are allowing the Federal Reserve Bank's examiners to participate with their examiners in the examination of State bank and trust company; members. This privilege has been exercised in the case of approximately 50 per cent of the State bank members. The arrangement with the superintendents of banks of the various States by which we are permitted to participate in the examinations enables the Federal Reserve Board and the Federal Reserve Bank to obtain information not incorporated in the reports of examination used by the State authorities. These joint examinations have been conducted in thorough accord and harmony with the State examiners and are appreciated by the banks, in that they are not subjected to an additional and independent examination by the Federal Reserve Bank. The various superintendents of banks are also furnishing copies of their independent examinations, one each for the Federal Reserve Board and the Federal Reserve Bank. MEMBER BANKS' RESERVE ACCOUNTS. The reserve balances of both State and national banks have gradually increased during the year, the gross amount being approximately $10,000,000. The highest figure was reached during the month of December, with an average of $58,378,256.45. The majority of the accounts have been very active, particularly for wire transfers. There were 7,933 charges, aggregating $421,885,452.19, transferred to member banks of other districts and 10,936 credits, aggregating $723,252,594.69, for transfers received for credit of our members. It will be seen that transfers received from other districts greatly exceed the transfers to other districts and the transferring of funds by wire is meeting with more favor and the volume is gradually increasing. FISCAL AGENCY OPERATIONS. For Treasury Department.—The fiscal agency operations of the Federal Reserve Bank of Atlanta, though somewhat reduced in total volume as compared with the year 1918, due primarily to the partial cessation of Government financing by the flotation of bonds, coincident with the demobilization of the Army and Navy, and the reduction of the strain on the Government's Treasury for funds for war purposes, were, nevertheless, large in total volume, and show most Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

388 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. unmistakably that the banks and the people of the Sixth Federal Reserve District stood squarely behind the Government in supporting its program for raising funds necessary to meet the obligations incurred in the prosecution of the war. Sales of Treasury certificates to banks.—-Ten series of Treasury certificates of indebtedness were issued in anticipation of the Victory Liberty loan, eight in anticipation of income and profit taxes payable in 1919, and four in anticipation of the same classes of taxes payable in 1920; and, in addition to these issues of certificates, four other series of loan certificates of indebtedness were issued, all of which were subscribed to very liberalty by the banks, the total of their subscriptions being $328,838,500. Flotation of the Victory loan.—While the Victory Liberty loan lacked the impelling call upon the patriotism of the people that characterized previous Liberty loans issued during the period of actual hostilities when our armed forces were engaged in the terrific struggle with the enemy, this district subscribed practically its entire quota, the amount of the subscription being $133,080,800. Deposits and withdrawals of Treasury funds.—The Secretary of the Treasury continued the established practice of permitting qualified depositary banks to pay for subscriptions for bonds and certificates of indebtedness by credit in special deposit accounts maintained with the Federal Reserve Bank, the purpose being to provide for the gradual withdrawal from the banks of the funds paid to them by subscribers for bonds and certificates of indebtedness, and the funds representing payment of their own subscriptions of the same character. This was accomplished by the balances thus created being withdrawn by order of the Secretary of the Treasury in relatively small installments at intervals of 15 to 30 days, until the balances in the special deposit accounts were completely withdrawn. The total amount held by qualified depositary banks in these special deposit accounts during the year was $224,879,046.36. Sale of war savings certificates.—The organization and direct charge of all activities for the promotion of the sale of Treasury savings certificates were, during this year, known as the war loan organization. It previously consisted of six State organizations, but was this year consolidated into a single district organization with headquarters in Atlanta, and was placed under the supervision of the governor of the Federal Reserve Bank, with Mr. Silas W. Davis in direct charge as Government director. About $2,000,000 worth of Treasury savings certificates have been sold in this district, and the demand is increasing from month to month. The sales in the district will be approximately $10,000,000 in war savings and thrift stamps for this year. Interchange and exchange of Government securities.—In connection with the operations of the fiscal agency, growing out of the sale and delivery of bonds and certificates of indebtedness, it is interesting to note the extensive service rendered to the banks and other holders of those securities, in effecting the interchange and exchange of bonds and certificates of indebtedness, and the conversion of bonds. During the year a total of $32,482,900 of coupon bonds of all issues were interchanged; that is, at the option and request of the holders they were given in exchange for bonds of any one issue, other bonds of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6-—ATLANTA. 389 the same issue of different denominations. This enabled the holders of those securities to obtain bonds of larger or smaller denominations than those initially delivered to them, without any expense to such holders. A total of $7,459,950 of bonds were converted during the year, in accordance with the provisions of law relating to conversion, and a total of $7,527,150 of bonds were exchanged, coupon bonds for registered bonds, and registered bonds for coupon bonds, at the option and in accordance with the washes of the holders of those securities. War Finance Corporation.—Acting as fiscal agent for the War Finance Corporation in this district, this bank sold $1,801,000 of 1-year 5 per cent gold bonds, issued by that corporation on April 1, .1919: and during the course of the year consummated other transactions for account of the corporation amounting to $34,759,239.86. Capital Issues Committee.—At the request of the Capital Issues Committee at Washington, the district capital issues committee suspended supervision of the issue and sale of stocks and bonds at the close of business last year, and there has been no jurisdiction exercised over the issue and sale of stocks and bonds during the year 1919. NOTE ISSUES. Federal Reserve notes.—During the year there has been a comparatively small amount of Federal Reserve notes issued in exchange for gold and gold certificates, the banks and public having patriotically responded to previous appeals for the exchange of Federal Reserve notes for gold or gold certificates; there is probably some gold still in the hands of the banks and the public throughout the district, though it is not believed that there is any great volume. The average circulation of Federal Reserve notes during the year has been greatly in excess of any previous year, which is due to the business expansion, high prices, high wages, and larger amounts of till and pocket money. The redemption of unfit Federal Reserve notes has been heavy throughout the year. A large volume of fit money was redeemed in the early months; however, with the issuance to the Treasurer of the United States of upward of $50,000,000, there was comparatively little fluctuation in the bank's outstanding circulation. The demands for the crop movement from September 15 to December 25 resulted in an increase of outstanding Federal Reserve notes of a little more than $40,000,000. The amount of fit money returned to the Federal Reserve agent by the bank for the year was $82,038,000, or 136 per cent of the total of $60,016,080 which had been returned from organization up to the close of business December 31, 1918. There was issued to the bank $183,598,000 for 1919, as against $211,334,180 from November 14, 1914, to December 31, 1918, or 86.8 per cent. The redemption of unfit money increased more than any other item. The amount redeemed was $65,072,465 for 1919, being 233.4 per cent of the total of $27,904,715 which had been returned from organization to December 31, 1918. Federal Reserve bank notes.—Section 4 of the Federal Reserve Act, as approved December 23, 1913, provides that Federal Reserve Banks may issue bond secured currency in the same manner as it is issued by national banks, except that they are not restricted in the issue to the amount of capital stock of the issuing bank. However, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

390 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. only a small amount of this currency was issued prior to June 1, 1918. On December 31, 1918, the Federal Reserve Bank of Atlanta had outstanding circulating bank notes amounting to $6,085,600. During the year 1919 Federal Reserve bank notes of $1 and $2 denominations were freely issued by all Federal Reserve Banks in order to prevent contraction of currency caused by the redemption of silver certificates. The demand for currency of small denomination in the Sixth Federal Reserve District during the year was very heavy, and the amount of notes of these denominations outstanding increased from $6,085,600, as shown by the last annual report, to $15,777,600 at the close of business December 31, 1919. In addition to this amount we were forced, on account of our excessive demands, to obtain through the Federal Reserve Board notes of $1 and $2 denominations issued by other Federal Reserve Banks to the amount of $3,324,000. POSITION OF COMMERCIAL BANKS AS RESULT OF WAR FINANCING. Increase of their obligations.—In view of the fact that the commercial banks were called upon to make up the full quota of the district in the sale of Liberty bonds, Victory notes, and United States Treasury certificates of indebtedness, it became necessary in many instances for the commercial banks to use the bonds, notes, and certificates issued by the Government and purchased by the banks to build up their available resources for the handling of their commercial business. This brought about the unavoidable result of the banks showing in their statements of condition more rediscounts and bills payable than would have otherwise existed. This situation was relieved by the sale of cotton and its by-products at increased prices, the higher prices being the result of decreased production caused by unfavorable weather, the boll weevil, and labor conditions. Deposits in the commercial banks have materially increased during the year. On the whole, the banks in this district are in a very strong financial position. Effect on commercial paper of district.—Agricultural products have brought good prices, the commercial business of the district has been in excellent shape, and those engaged in farming have been enabled to liquidate their obligations, thus relieving the banks, the funds arising from this source being used in the commercial and industrial activities of the district. The sale of commercial paper in the district by leading brokerage houses has materially increased, and while we have no definite figures, we are of the opinion that there is a greater amount of commercial paper being sold in this district arising out of financing of large corporations throughout the United States. As this paper matures, the condition of the district will remain strong and in satisfactory shape for the future. Relation to and effect on general business.—As a whole, we believe general business conditions are going to be materially improved by the purchase of commercial paper during the months when funds can not be used profitably in the district, as these mature at a season of the year when financing will be needed. This, in our opinion, places the banks in a very strong and satisfactory position for the immediate future. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6—ATLANTA. 391 POLICY TO BE PURSUED IN RESTORING THE LIQUIDITY OF BANKS. A great number of the member banks in our district are carrying large amounts of war paper for their customers, and it is not very likely that this class of paper will be totally cleared up for several years, unless there is a reaction in business and other investments. When "settling up" time comes, investors will turn to Government securities, and those who are now borrowing from their banks on Liberty bonds will very likely be able to dispose of a large amount of these bonds to general investors. It would seem to be a wise policy for the Federal Reserve Bank to continue to raise discount rates, in order to force to some extent those who are borrowing from member banks on Government securities to curtail their borrowings and economize sufficiently to pay off their obligations. OPERATION OF FEDERAL RESERVE BANK BRANCHES. In addition to the branches already in operation at New Orleans, Birmingham, and Jacksonville, an agency was established at Savannah, Ga., on February 5, 1919, and a branch was established at Nashville, Tenn., on October 21, 1919. Savannah agency.—Mr. R. J. Taylor, formerly connected with banks in Savannah and afterwards cashier of a bank at Guy ton, Ga., was appointed manager of the Savannah agency, and Mr. R. N. Groover, formerly connected with banks in Savannah, was appointed assistant manager. The functions of this agency are limited to the furnishing of currency to Savannah member banks, receipt of currency on deposit from Savannah member banks, and the holding of collateral pledged as security to bills offered to and under rediscount with the parent bank. A large percentage of the cotton and other products grown in this district pass through the port of Savannah, and, in order to facilitate their handling, large sums of currency and frequent discount accommodations are needed by Savannah member banks. It was, therefore, deemed advisable to establish an agency there, so that the currency requirements of the member banks in Savannah could be taken care of promptly. Nashville branch.—Mr. Bradley Currey, who prior to his entrance in the United States Army was an officer of the Fourth & First National Bank of Nashville, was elected manager of the Nashville branch, and Mr. W. T. Tyler, formerly connected with Nashville banks, was elected assistant Federal Reserve agent. The board of directors is composed of the following: Messrs. W. H. Hartford, chairman; Paul M. Davis, Jas. E. Caldwell, and E. A. Lindsey, all of Nashville, and T. A. Embry of Winchester, Tenn. There are 23 employees in addition to the officers. The territory assigned to this branch is that part of the State of Tennessee which is located in the Sixth Federal Reserve District, with the exception of the city of Chattanooga. The plan of operation of this branch is identical with that existing at Birmingham and Jacksonville branches. The accounts of all member banks in its zone are carried on the books of the parent bank, and all entries relating to transactions consummated are handled promptly over private telegraph wires. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

392 ANNUAL KEPORT OF THE FEDERAL KESEKVIS BOARD. INTERNAL ORGANIZATION. At the January, 1919, meeting of the directors of the Federal Reserve Bank of Atlanta it was announced that Mr. M. B. Wellborn had been redesignated as chairman of the board and Federal Reserve agent for the year 1919, and that Mr. J. M. Slattery had been reappointed assistant Federal Reserve agent. At that meeting Mr. Jos'. A. McCord was reelected governor of the bank, together with the following officers: M. W. Bell, cashier; W. B. Roper, J. L. Campbell, W. R. Patterson, R. A. Sims, and Creed Taylor, assistant cashiers, and Ward Albertson, general auditor. At the February meeting of the board of directors Mr. Jos. A. McCord resigned his position as governor of the bank, and Mr. M. B. Wellborn resigned as class C director and chairman of the board and Federal Reserve agent. Mr. McCord was then appointed by the Federal Reserve Board as class C director for the term ending December 31, 1920, and was designated as chairman of the board and Federal Reserve agent for the year 1919. Mr. M. B. Wellborn was then elected governor of the bank, Mr. L. C. Adelson, deputy governor, Mr. J. M. Slattery, secretary, and Mr. H. F. Conniff, assistant cashier. Mr. Ward Albertson was appointed assistant Federal Reserve agent and Mr. Creed Taylor was elected auditor of the bank. At the November, 1919, meeting of the directors, Mr. Jas. E. Zunts, of New Orleans, resigned as class B director of the Federal Reserve Bank of Atlanta, and Mr. Leon C. Simon, of New Orleans, was elected to fill the unexpired term caused by Mr. Zunts's resignation, said term expiring December 31, 1920. Mr. W. H. Hartford, of Nashville, Tenn., was reelected a class B director for the three-year term ending December 31, 1922, and Mr. F. W. Foote, of Hattiesburg, Miss., class A director, having declined to stand for reelection, Mr. Oscar Newton, of Jackson, Miss., was elected for the three-year term ending December 31, 1922. Mr. W. H. Rettig, of Birmingham, Ala., was reappointed by the Federal Reserve Board as class C director for the three-year term ending December 31, 1922. At the meeting of the board of directors January 10, 1919, on petition of the banks in the city of Savannah, Ga., and upon approval of the Federal Reserve Board, the directors voted to establish an agency at Savannah, largely to meet the needs of that cotton port. On petition of the banks in Tennessee, especially in the city of Nashville, the board of directors at their meeting on August 8, 1919, voted to establish a branch at Nashville, Tenn., which was approved by the Federal Reserve Board; and in compliance therewith the branch was opened at Nashville on October 21, 1919. Owing largely to the establishment of the branch bank at Nashville, the number of employees was increased to 386, as compared with 317 in 1918. During the year the bank and branches have strengthened and improved their internal organization and have reached a much higher degree of efficiency. CLEARINGS AND COLLECTIONS. Comparing 1919 figures with those in the 1918 annual report we show a gain in the number of items handled of 91.4 per cent, and in the amount of money of 54.2 per cent. The direct-sending member Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6—ATLANTA. 393 banks have increased their volume of sendings to other Federal Reserve Banks and their branches 75 per cent. Cost per item for 1919 was $0.0119 and per thousand dollars $0.0307, against $0.0097 per item and $0.0228 per thousand dollars for 1918. This shows an increase in the cost per item over 1918 of $0.0022 and per thousand dollars of $0.0079. There has been a marked improvement in the handling of transit operations during 1919, due to better organization and the adoption of better methods. During the year we added to our par list 106 banks. We now have in the Sixth District 783 banks remitting at par. The number of items handled by the collection department has increased to a very considerable extent during the year 1919. We handle all items forwarded to us as collection items by other Federal Reserve Banks and their branches, and also items from member banks located within this district. The greater volume of items handled consists of notes, drafts, and bill-of-lading drafts. During the year 1919 the collection department handled 21,821 items, amounting to $52,996,504.47. GOLD SETTLEMENT FUND. The year 1919 was the first full year's operation under the daily settlement basis. With the volume of transactions among Federal Reserve Banks now being handled, particularly in connection with special transfers of funds for member banks, for the Treasurer of the United States, and for rediscounts between Federal Reserve Banks, the account has been very active, and it would be well nigh impossible to conduct the business through the Federal Reserve Banks without this fund. The handling of this account is greatly facilitated by the private-wire system, connecting all Federal Reserve Banks, their branches, and the Federal Reserve Board. On April 1, 1919, the New Orleans branch was permitted to begin settling direct in common with a number of other branches of Federal Reserve Banks. FOREIGN ACCOUNTS. Foreign Government credits.—The account of foreign Government credits was opened July 17 under participation with other Federal Reserve Banks, through the Federal Reserve Bank of New York, and has been maintained with little fluctuation since that date. The daily average balance of this account has been $2,761,701.19. The maximum balance was held when the account was opened on July 17, of $3,333,408.37. The minimum balance was on October 31, when it stood at $2,602,586.02. The average difference between the resource item of gold with foreign agencies and the liability item of foreign Government credits has been $416,156.07. These resource amounts have been available as cash and part of the bank's cash reserve. Gold with foreign agencies.'—A balance in this account was continued from 1918, and was closed out on April 2. It was opened again in September and maintained throughout the balance of the year. The daily average balance during the period of activity was $2,345,545.12; the minimum balance during; the period of activity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

394 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. was from January 1 daily until April 2, when it was closed. The maximum of $5,270,626.78 was on November 13. The amount carried over from last year was dormant until it was closed on April 2, but since reopening the account in September it has been very active, increasing and decreasing in varying amounts almost weekly. BANKING QUARTERS—NEW BUILDINGS. The Federal Reserve Bank of Atlanta has under construction in Atlanta additions to the permanent quarters which will nearly treble the present floor space. The total estimated cost of the new building under construction amounts to $205,000. These additions will be completed in May, 1920. The construction follows out the same line of architecture as the original building. The material used is also the same, viz, reinforced concrete, with granite exterior. The new building will be fireproof and thoroughly modern in every way. In June, 1919, the board of directors authorized the purchase of a building known as the Commercial National Bank, New Orleans, La., for permanent quarters of the New Orleans branch. This building is situated in the block bounded by Carondelet, Common, Baronne, and Canal Streets. The price paid for the property was $236,250. This property is centrally located and well adapted for the purpose intended, and it is thought that these quarters will be entirely adequate for the New Orleans branch for a number of years. TREASURER'S GENERAL ACCOUNT. This account has been very active. The number and amount of warrants and coupons redeemed have been large. The monthly average of warrants redeemed was 104,224 items, amounting to $28,523,435.67, and the monthly average of coupons redeemed was 274,960 items, amounting to $1,097,650.33. Since the earlier months of the year there has been a steady decline in the number and amount of warrants redeemed, except for the months of September and October, when there was a slight increase. GENERAL BUSINESS AND BANKING CONDITIONS. The month of December brings to a close a year of remarkable commercial activity and expansion in the district. The transition from a war footing to a peace basis, while it has been marked, has taken place with comparatively little disturbance. There was some uncertainty in the early months of the year, occasioned by the cancellation of Government contracts and orders, but the attention of business was at once turned to the general trade, and for several months now manufacturing plants and jobbers have experienced difficulty in filling orders as rapidly as received. A slight decline in prices in the early months of the year almost immediately gave way to a steady and continuous advance, with the result that prices of practically all staples have for months been higher than at any time during the war. An investigation during the spring months developed the fact that sales by retail stores were for cash in a much larger percentage of instances than heretofore, and that the proportion of credit sales had decreased relatively. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6—ATLANTA. 395 While peace has not officially been declared, there has been a good foreign demand for our raw and manufactured products, as well as foodstuffs, until more recently when the decline in foreign exchange has had the effect of somewhat curtailing this demand. Nevertheless it has had the effect of reducing our supplies and correspondingly increasing prices, with the result that very few articles have escaped the general rise in prices. The price of cotton, the principal staple product of the district, has increased during the year from around 27 or 28 cents to around 40 cents. A large proportion of the crop was held for 35 cents, and much cotton was held by the producer uptil the price reached 40 cents. Diversification in farming has continued to an encouraging extent, and a large increase is shown in the production of live stock in all the States comprising the district. A larger proportion of farmers are raising blooded cattle, hogs, and sheep, and the average character of the stock shows a steady improvement in quality. The larger towns and cities of the district have experienced a serious shortage of houses, both for renting purposes and for sale to homeseekers, throughout the year. This has been relieved to some extent by extensive building operations exceeding those of any previous year. The lumber market has consequently been very active throughout the year, and prices have steadily advanced, production being reported as below normal. The year closes with the greatest demand for lumber and the highest prices ever known, and the outlook is for still higher prices next year. All lines of business have had to cope with the problem of shortage and inefficiency of labor. Upon the cancellation by the Government of its war orders, a few manufacturing plants closed for a short time only, others operated on a part-time basis, pending resumption of business with the general trade. With this exception, however, there has been little or no unemployment, and a shortage has existed in practically all lines during the year. The shortage of farm labor has been a serious handicap, especially during the harvesting season, when, in some cases, fields of cotton and other crops were abandoned because of lack of farm help. The steel and coal strikes, while serious in their effect, have not affected the district greatly from a standpoint of production, for the reason that in Alabama steel plants and coal mines there is a larger percentage of nonunion workers than union men. The production of pig iron has increased, and all industrial plants are operating to full capacity. Bank clearings at the principal cities of the district have consistently shown increases from month to month over those for the same periods of 1918, and collection conditions have been reported as good throughout the year. It is undoubtedly true that the average individual has had more money this year than ever before, and while savings deposits have been increased, the individual has spent money unrestrainedly, and for more expensive things, than ever before. The business in automobiles, jewelry, fine furs, and expensive clothing exceeds that of any previous year. 178983—20 26 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBIT A.—Movement of earning assets. CO Bills discounted. Date. S M ec e u m w re a b r d e r b o y bl i G ga o t v io e n rn s m . ent M Ot e h m er b w u e n r is s e e c s u e r c e u d r . ed and ob P s b l e e y i r c g u a c r w t e i e o a n d r n t s op c B e h i n a ll s m s e p d a u r i k n r e - t o U S b w o n ta n n i t t e d e e d s s d . U o c n f e i i r t n n t e i d e d fi s e c S s b a . t t t a e e t d s e - s M wa u r n r i a c n ip ts a . l ea T r o n t i a n l g I banks' col- All other. banks' col- All other. (1+2-t-l to lateral notes. lateral notes. 4, incl.). 5 10 Per cent. Jan. 3. $44,470,186 $18,280,983 $1,248,713 $18,027,026 63.6 $11,860,337 $542,550 $6,066,000 $13,000 $100,508,797 10. 37,902,915 7,849,007 1,014,000 29,717,002 59.8 11,920,209 542,450 6,566,000 13,000 95,524,583 2 1 4 7 . . 4 3 6 5 , , 9 2 1 66 4 , , 9 8 1 7 5 1 6 4 , . 7 3 4 43 9 , , 8 0 3 4 2 2 66 2 2 5 , , 8 30 0 0 0 2 2 6 8 , , 1 8 0 3 5 9 , , 8 9 3 2 7 2 6 5 4 9 . . 7 3 1 1 1 1 , , 1 3 0 2 6 8 , , 6 8 5 3 1 1 5 5 3 4 6 2 , , 9 4 0 5 0 0 6 6, , 5 5 2 2 1 1 , , 0 0 0 0 0 0 4 4, , 0 0 0 0 0 0 9 8 6 9 , , 1 2 9 7 5 7 , , 8 4 9 6 2 0 o 31. 42,548,471 5,899,206 737,500 ' 22,020,528 67.9 10,377,277 528,575 6,521,000 4,000 88,636,559 Feb. 7. 45,531,650 5,971,178 160,000 19,270,209 72.6 9,619,390 528,250 6,964,000 4,000 88,048,678 14 52,263,150 6,279,095 160,000 17,768,724 76.6 8,550,318 378,450 6,964,000 4,000 92,367,737 1-3 21. 53,758,550 6,172,001 5,000 14,489,677 80.0 8,008,552 377,900 6,964,000 4,000 89,779,682 28. 56,923,550 5,884,934 5,000 12,746,658 83.1 7,603,362 377,800 7,464,000 4,000 91,009,305 Mar. 7. 58,930,200 5,792,113 11,904,702 84.5 7,503,659 377,750 7,464,000 4,000 91,976,425 14. 59,667,000 5,238,198 22,000 12,295,663 84.0 7,398,219 377,700 7,964,000 4,000 92,966,780 i 21. 60,934,250 4,489,221 22,000 12,599,238 83.8 7,223,225 377,650 8,474,000 4,000 94,123,585 28. 60,731,150 4,524,973 10,000 14,006,850 82.3 6,527,441 377,600 8,474,000 3,000 94,655,014 Apr. 4. 62,114,400 4,721,127 10,000 13,506,178 83.2 6,166,338 377,350 8,474,000 3,000 95,372,394 11. 63,293,900 4,658,309 20,000 12,785,306 84.1 5,740,591 377,250 8,474,000 95,349,357 18. 65,047,800 3,927,511 40,000 10,935,856 86.3 5,576,642 377,150 8,474,000 94,378,961 25. 67,792,950 2,889,561 20,000 11,453,669 86.0 5,713,021 377,000 8,974,000 97,220,202 May 2. 69,038,400 3,734,103 20,000 11,415,847 86.4 6,033,768 376,950 8,974,000 99,593,069 9. 68,503,850 3,737,598 20,000 11,660,643 86.1 6,104,098 376,850 9,024,000 99,427,040 16. 70,046,400 3,970,854 20,000 11,615,590 86.4 5,640,676 384,050 9,634,000 101,311,572 23. 66,390,600 4,518,078 625,060 12,854,523 84.0 5,151,063 383,900 9,509,000 99,432,225 30. 66,034,325 4,214,740 672,560 12,710,221 84.7 5,296,276 383,900 9,584,000 98,896,023 June 6. 60,198,625 4,447,502 934,288 12,240,267 83.1 5,382,340 383,350 10,549,000 94,135,374 13. 69,019,100 4,103,286 283,727 12,841,368 84.8 6,344,887 383,150 10,599,000 103,574,520 I 20. 68,193,250 4,212,012 470,384 14,825,716 82.6 7,059,036 383,050 10,599,000 105,742,450 27. 67,313,409 4,505,625 860,384 15,910,526 81.1 7,173,370 382,950 10,599,000 106,745,266 July 3. 63,145,179 5,049,251 692,884 13,471,933 82.8 6,588,860 382,650 10,575,000 99,905,759 11. 63,349,574 4,640,991 616,346 12,930,923 83.4 6,725,674 382,650 10,575,000. 99,221,159 18. 64,641,618 4,438,278 1,024,102 10,882,631 85.3 6,885,339 382,650 10,479,000 98,733,621 25. 74,700,118 4,215,447 1,104,366 11,475,124 80.3 6,991,798 382,650 10,479,000 109,348,504 Aug. 1. 72,038,518 3,739,908 681,610 11,759,129 85.9 6,568,372 382,250 10,479,000 105,648,788 8. 75,795,118 3,734,692 320,990 11,327,220 87.2 6,034,737 382,150 10,979,000 108,573,908 15. 71,950,104 3,273,296 359,990 11,852,099 83.3 5,432,071 382,000 11,479,000 104,728,560 22. 74,805,350 3,361,962 359,490 13,014,686 85.4 4,860,862 381,200 11,979,000 108,762,551 29. 78,635,155 3,829,862 517,149 14,374,557 84.7 4,165,137 380,900 12,479,000 114,381,760 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Sept. 5. 73,675,055 3,960,098 537,149 15,228,513 83.1 3,923,463 380,800 12,979,000 110,684,079 12. 71,502,305 4,443,877 320,000 19,888,226 79.0 3,903,329 380,750 12,964,000 113,402,489 19. 69,589,705 5,281,942 368,500 24,144,477 75.3 3,736,392 380,450 13,464,000 116,965,468 26. 66,087,555 5,220,206 1,713,500 25,215,191 72.6 5,099,537 380,400 13,464,000 117,180,391 Oct. 3.. 68,370,463 5,296,615 2,376,000 28,734,065 70.3 5,981,664 380,300 i 13,464,000 124,603,108 10.. 66,772,463 5,411,597 1,030,000 30,761,564 69.4 6,924,434 380,300 i 13,464,000 124,744,359 17.. 6,5,891,203 5,638,805 410,270 35,512,550 66.5 8,564,185 380,000 ] 14,464,000 130,861,015 24.. 66,548,925 4,624,904 662,230 33,326,121 67.7 10,281,473 380,000 14,464,000 130,287,654 31.. 64,976,555 5,158,365 560,000 36,491,231 65.4 12,209,289 379,950 14,564,000 134,339,391 Nov. 7. 64,582,616 4,964,856 415,000 35,955,361 65.7 12,871,524 379,700 15,164,000 134,333,059 14. 63,016,150 5,149,932 940,000 36,750,783 64.4 12,519,876 379,700 15,665,000 134,421,442 21. 64,573,725 4,320,803 900,000 37,272,017 64.3 12,428,328 379,700 15,665,000 135,539,574 28. 61,593,680 4,036,237 390,000 36,151,102 64.2 11,911,998 379,700 15,665,000 130,127,718 Dec. 5.. 60,457,465 5,039,436 595,000 34,612,690 65.0 11,849,406 379,700 15,665,000 128,598,698 12.. 58,757,665 5,120,716 537,500 31,852,975 66.4 12,186,638 379,650 15,665,000 124,500,145 19.. 57,101,705 4,740,788 502,500 30,669,861 66.5 17,128,584 379,550 15,665,846 126188,835 26.. 56,816,660 4,562,118 570,000 28,273,332 68.0 16,230,907 379,300 15,665,846 122,498,164 i I 3 O T CO CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

398 ANNUAL BEPOKT OF THE FEDERAL RESERVE BOARD. FEDERALRESERVEBANK OF ATLANTA MOVEMENT OF EARNING ASSETS DURING CALENDAR YEAR 1919. • 25 25 PIPHP 0 0 UNITEDSTATES SECURITIES. 25 i I 25 O O ACCEPTANCES BOUGHT. no CO 80 so 60 60 40 40 20 20 0 PERCEtiTAGEOF WAR PAPER TO TOTALDISCOURTS. I2S TOTAL BILLS DISCOUHTEDD,;A/1PfVARFAP£R;iV: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6—ATLANTA. 399 rEDERALRESERVEBANKOFATLANTA NET DEPOSIT LIABILITY. is I F.R.NOTECIRCULATION CASH RESERVES A11P RESERVE RATI0J9I9. 70 60 SO SO 40 40 30 30 20 20 10 10 0 RESERVE RATIO, (PERCEKTA6E0FC+L ). P£P05!TAtiDmtlOTnLiAB!UmS/LANP TOTAL RESERnS/' t Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

400 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT B.—Movement of cash reserves, net deposits, Federal Reserve note liabilities, and the reserve percentage. 3 Federal re- Reserve Date. Total cash serve notes percentreserves. in actual (2+3). age circulation. (1-5-4). Jan. 3 $62,890,697 $33,826,754 $119,640,310 i$153,467,064 40.9 10 65,575,788 33,193,465 118,136,519 |151,329,984 43.3 17 64,944,812 26,809,435 117,122,615 143,932,050 45.1 24 68,847,419 41,971,460 112,741,260 j 154,712,720 44.5 31 66,179,618 33,117,510 111,391,190 I 144.508.700 ! 45.7 Feb. 7 68,584,332 32,588,753 113,065,760 j 145,654,513 47.0 14 70,875,328 41,989,556 110,320,025 i 152,309,581 46.5 20 74,867,408 ! 41,047,645 113,009,070 1 154,056,715 48.6 28 73,076,836 ! 41,747,401 110,785,210 !152,532,611 47.9 Mar. 7 76,388,642 44,673,031 111,822,670 : 156.495,701 48.8 14 71,077,919 41,879,477 110,087,015 ;151,066,492 46.8 21 63,976,906 33,646,524 112,269,070 ! 145,915,594 43.8 28 68,065,223 34,667,854 115,974,805 : 150,642,659 45.1 Apr. 4 68,115,593 35,667,648 115,172,665 j 150,840,313 45.1 11 73,484,657 41,874,671 114,077,620 I 155,952,291 47.1 18 75,494,364 41,723,844 115,215,430 I 156,939,274 48.1 25 69,771,578 38,414,891 115,332,840 |153,747,731 45.3 May 2 67,596,166 38,127,117 115,538,655 !153,665,772 43.9 9.. 70,595,807 40,568,826 115,854,035 |156,422,861 45.1 16 71,185,830 45,449,774 113,171,485 !158,621,259 44.9 23 70,028,813 43,168,752 112,263,640 I 155,432,392 45.0 29 74,860,974 47,832,533 113,349,880 j 161,182,413 46.4 J J u u n ly e 2 2 2 1 1 1 3 6 0 7 5 3 1 8 1 1 ! 7 7 6 6 7 8 7 8 2 7 7 8 6 1 5 0 , , , , , , , , 2 5 3 0 2 8 9 7 2 2 2 2 0 5 5 1 2 3 5 3 7 4 2 2 , , , , , , , , 2 0 7 6 5 8 0 8 4 3 6 6 3 3 1 9 6 0 6 7 6 0 8 1 4 4 4 3 4 4 5 4 4 5 5 7 3 3 6 4 9 2 , , , , , , , , , 4 2 7 1 0 7 9 7 2 8 1 0 4 1 8 2 7 2 3 0 6 2 2 0 0 4 3 , , , , , , , , , 0 5 3 6 0 7 8 5 1 6 8 1 2 6 5 4 6 3 1 5 2 5 9 4 7 7 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 5 5 5 8 9 5 7 6 , , , , , , , , , 1 5 9 9 1 3 6 3 8 2 6 3 9 1 1 6 1 3 8 9 3 5 9 2 9 5 8 , , , , , , , , , 2 0 4 0 1 0 3 6 0 7 1 8 8 3 1 8 1 4 5 5 5 0 0 0 0 0 0 j i ! ! 1 1 1 1 1 1 1 1 1 1 6 5 5 6 6 6 7 6 5 4 2 8 5 2 0 0 5 8 , , , , , , , , , 9 3 2 3 2 5 5 0 9 0 1 4 1 3 2 8 2 7 2 8 1 9 9 8 4 2 6 , , , , , , , , , 6 4 1 6 6 7 6 8 0 7 0 8 9 6 8 4 5 7 1 5 4 2 5 4 7 7 0 4 4 4 4 4 4 4 4 4 9 2 4 6 3 8 2 7 7 . . . . . . . . . 2 6 6 0 0 8 5 5 6 Aug. 1 68,493,745 47,324,558 116,613,295 163,937,853 43.3 8 71,035,926 46,489,517 115,742,490 162,232, 007 45.3 15 i 73,547,547 48,512,942 112,991,050 161,503,992 42.6 22 69,427,630 48,652,592 113,631,550 162,284,142 40.1 29 65,085,570 43,736,513 114,806,985 158,543,498 41.3 Sept. 5 65,504,156 45,759,113 116,366,880 162,125,993 40.5 12 65,708,391 45,832,494 117,962,935 163,795,429 39.8 19 65,270,724 44,749,912 121,012,470 165,762,382 40.5 26 67,198,767 51,147,445 128,383,830 179,531,275 41.0 Oct. 3 73,786,993 46,925,737 133,448,505 180,374,242 41.3 1 1U 0 . ............................. fX 7 m 4 L ,5 »U 0 J 5 , C , ^ 9 lJ 2 L 1 51,881,110 137,215,255 189,096,365 40.6 17 77,010,222 48,116,251 140,943,075 189,059,326 41.6 24 i 78,720,356 50,923,165 141,976,333 192,899,498 40.7 31 78,521,267 50,080,548 150,378,970 200,459,518 43.3 Nov. 7 86,948,763 50,073,311 151,376,310 201,449,621 43.4 14 87,565,621 53,815,772 149,811,480 203,627,252 43.9 21 89,442,550 57,493,819 148,566,960 206,060,779 47.2 28 97,348,393 55,016,339 150,749,279 205,765,618 47.9 Dec. 5 98,629,187 53,152,806 150,830,590 203,983,396 49.5 12 101,017,764 54,720,409 153,919,980 50.1 19 104,430,441 54,924,094 156,599,055 52.8 26. 111,675,788 211,523,149 I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6—ATLANTA. 401 EXHIBIT G.—Comparative balance sheet of Federal Reserve Bank of Atlanta, including branches. Dec. 31,1919. Dec. 31,1918. RESOURCES. Reserves: Goldrexemption fund—Federal Reserve notes $7,940,425.13 $6,957,760.00 Gold with Federal Reserve agent 63.503,220.00 42,179,185.00 Gold settlement fund 19,333,518.51 6,302,193.45 Gold bullion and coin 1,930,767.62 1,900,488.42 Gold certificates (including clearing-house certificates) 6,482,040.00 6,086,890.00 Gold with foreign agencies 4,727,527.61 174,866.23 Total gold reserves. 103,917,498.87 63,601,383.10 Legal-tender notes. 163,325.00 165,009.00 Silver certificates... 117,580.00 I 55,544.00 Silver coin 709,806.30 | 16,690.50 Total cash reserves. 104,908,210.17 1 Nickels and cents 6,170.35 1,336.40 5 percent fund against Federal Reserve notes. 878,550.00 310,690.00 Overdrafts 10,049.31 Total. 894,769.66 312,026.40 Deductions from gross deposits: National-bank notes 367,700.00 4,119,829.00 Bank notes, other Federal Reserve Banks— 449,700.00 Federalreservenotes—Other Federal Reserve Banks 1,278,455.00 Unassorted currency 7,181,806.00 Transit items 36.319,680.10 16,399,909.62 Checks and other cash items 67,064.23 122,324.66 Exchanges for clearing house 2,602,513.91 2,876,114.04 Otheritems 9,981,436.18 Branches 2,518,975.61 Total deductions. 48,266,919.24 36,018,589.11 Earning assets: Member banks' collateral notes, Government secured 61,832,680.00 47,626,800.00 All other, Government secured 4,558,955.09 Member banks' collateral notes, otherwise secured 635,000.00 All other, otherwise secured 26,025,232.73 36,408,710.,93 Bills purchased 16.639,000.16 12,514,685.61 Victory notes ' 3,900.00 United States bonds to secure circulation 261,600.00 261,600.00 Other United States bonds 113,700.00 292,150.00 Certificates of indebtedness to secure circulation 15,664,000.00 5,964,000.00 Other United States certificates of indebtedness 1,000.00 102,000.00 War-savings certificates 846.00 Municipal warrants 13,666.66 Par value of earning assets 125,735,913.98 103,182,946.54 Deduct— Unearned discount $259,673.32 $228,225.46 Dep. reserve United States bonds. 4,686.85 830.70 Total 264,360.17 229,056.16 Less: Interest accrued on United States securities 135,903.92 24,961.80 128,456.25 204,094.36 Liquid value earning assets. 125,607,457.73 102,978,852.18 Miscellaneous assets: War-loan expense 121,786.25 456,208.21 War Finance Corporation. .47 Deferred charges 9,269.68 2,'957.3'i Bank premises 463,301.88 217,000.00 594,358.28 676,165.52 Total resources. 280,271,715.08 203,824,259.81 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

402 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. EXHIBIT C.—Comparative balance sheet of Federal Reserve Bank of Atlanta, including branches—Continued. Dec. 31,1919. Dec. 31,1918. LIABILITIES. Federal Reserve notes: Outstanding... $160 107 820.00 $123 620 285.00 Less: Held by bank and branches $4,108,635 $2,786,200 Forwarded for redemption 488,250 161,655 A rnc CQC on In actual circulation 155,510,935.00 120,672,430.00 Federal Reserve bank notes secured by Government obligations: Outstanding... 15 777,600.00 6 085 600.00 Less: Held by bank and branches 216,300.00 269,000.00 In circulation, net liability 15,561,300.00 5,816,600.00 Deposits: United States Treasurer—general account 2,706,991.38 2,839,711.85 Members—reserve account 58,388,305.76 46,222,851.15 Foreign government credits 2,602,586.02 Nonmembers clearing account 12,498.22 40,931.30 Cashier's checks 163,501.14 173,956.21 Deferred availability items- Gold settlement fund—suspense 5,862,338.16 6,973,458.15 Government transit items 998,183.13 All other transit items 30,270,446.54 16,335,014.92 Gross deposits 101,004,850.35 72,585,923.58 Miscellaneous liabilities: Reserved for taxes 25,583.24 Reserved for expense 45,846.49 47,572.19 Difference account 384.04 71,429.73 47,956.23 Capital, surplus, and net earnings: Capital- Paid in by members 3,425,650.00 3,191,350.00 Paid in by applicants for membership 2,550.00 Total capital 3,428,200.00 3,191,350.00 Surplus fund 4,695,000.00 1,510,000.00 Total liabilities 280,271,715.08 203,824,259.81 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 7.—CHICAGO. W. A. HEATH, Chairman and Federal Reserve Agent. In the first year of readjustment from a war to a peace footing, the operations of the Federal Reserve Bank of Chicago made a remarkable showing when measured by service rendered to the financial community and the Government. Features of operation, however, clearly indicate that such readjustment is a slow and hesitating process, especially in a district largely agricultural. While world-wide conditions are closely related with those of the Middle West, it is not easy to discover any direct reflection of them in the attitude of the people of this section as indicated by their disposition to indulge in extravagant living, to disregard the necessity of thrift, the imperative need for increased production, and the conservation of credit. The Middle West is a great producing section, largely agricultural but with manufacturing centers scattered all through it, all contributing to feed and clothe Europe and to supply her with raw materials and finished products. Necessarily the problems of production, distribution, and credit present themselves, and these involve as factors seasons of growth as well as harvest and transportation. The record of the Federal Reserve Bank of Chicago for 1919 indicates in some measure the manner in which these various problems have been or are being met and solved. In reviewing the operations of the Federal Reserve Bank of Chicago, attention is called to the grand total of the balance sheet at the close of 1919, showing total resources of $974,270,255, or more than $197,000,000 greater than the total resources at the close of 1918, $573,364,510 greater than at the close of 1917, and 8.2 times the total resources at the end of December just preceding our participation in the war. No other single total so well expresses the magnitude of the service carried through the most critical year which has been lived (possibly excepting the period of actual warfare) in longer than a half century. It has been the endeavor to render the greatest possible service to the business community, to the end that the liquidating process necessary to bring the country back from a war footing to a peace basis may be accomplished with the least possible disturbance to business interests and to the country at large. With this in mind, loans to and rediscounts for member banks have been carefully watched and the effort has been made to keep in touch with the general credit situation throughout the district as indicated by loans and discounts as shown in the reports of condition by the commercial banks. The Federal Reserve Bank of Chicago, in 1919, was able not only to supply the legitimate needs of its own district but to make large advances to other Federal Reserve Banks not so fortunately situated. 403 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

404 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. It also assisted materially in financing the Treasury, through the flotation of more than its full quota of Victory bonds, the banks of the district subscribing 18 per cent of the Victory loan, purchasing 14 per cent of the total loan anticipation certificates of indebtedness, and absorbing 13 per cent of the total tax anticipation certificates subscribed in the country. The transition from a war toward a peace footing has been attended so far with little business disturbance. In the early part of the year the sudden lessening of the demand for war materials and the cancellation of war contracts by the Government, together with the slowness of payment on these contracts, in consequence of the magnitude of the task, involved the use of such a considerable amount of credit as to offset, in a measure, the steady liquidation of war obligations. All through the year, however, there has been in evidence resistance to attempts to readjust prices and wages from a war-time level to a prewar normal, which necessarily finds its reflection to some extent in the loan account at the banks. Higher wages and high prices of materials call for the use of more money and credit in the conduct of business. The statistical record of operations of the Federal Reserve Bank of Chicago reflects the effect of high prices, low production, speculation, and extravagance existing in the Seventh Federal Reserve District. The strain upon the banking system, due to conditions which to some extent were controlled during the war, has been increased with the relaxation from war-time economies and conservation. There is little in the figures of the year 1919 which gives hope for an immediate return to normal conditions until production begins to overtake consumption and savings are accumulated to take the place of wealth lost by waste and extravagance, and to increase the available supply of capital of which the world is so greatly in need. FINANCIAL RESULTS OF OPERATION. The earnings of the Federal Reserve Bank of Chicago for the year 1919 aggregated $12,012,077, while the total expenses of the bank lor the year 1919 aggregated $2,548,324 compared with $1,495,002 the previous year. From the net earnings of 1919, there was charged off $820,000 as the estimated value of buildings to be razed on the property purchased at the end of 1918 as the site for the future home of the Federal Reserve Bank of Chicago. The balance sheet as of December 31, 1919, shows $423,823,509 total earning assets, compared with $247,091,416 at the close of the previous year, $125,490,000 in 1917, and $26,475,000 at the end of 1916. Total resources shown were $974,270,255 on December 31 last, compared with $777,187,612 at the end of 1918, $401,905,000 in 1917, and $118,790,000 at the close of 1916. The capital account at the close of 1919 showed $12,347,150 paid in, compared with $11,185,050 paid in at the end of 1918. The average capital paid in for the }rear was $11,685,000, compared with $10,087,800 for 1918. The surplus account at the close of 1919 was $14,291,642. Total Government deposits on December 31, 1919, were $350,003 compared with $6,566,290 at the close of the previous year, $3,052,000 at the close of 1917, and $2,045,000 at the close of 1916. The "total Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1—CHICAGO. 405 due to member banks—reserve" at the close of 1919 was $257,978,903, against $230,604,383 at the end of the previous year, $169,174,000 at the close of 1917, and $95,390,000 at the close of 1916. The balance sheet also showed $500,138,675 Federal Reserve notes in actual circulation at the end of 1919, against $428,820,115 at the close of the previous year. DISCOUNT OPERATIONS IN 1919. The total earning assets standing at $259,000,000 at the beginning of 1919 was composed of $133,000,000 notes collateraled by United States Government securities, $48,000,000 other discounted paper, $58,000,000 open market bills, and $20,000,000 United States securities owned. On December 26 the total earning assets stood at $427,000,000, composed of $147,000,000 notes collateraled by United States Government securities, $128,000,000 other discounted paper, $108,000,000 open market bills, and $44,000,000 United States securities owned. In the early figures Government securities appeared as collateral in 51 per cent of total earning assets, while on December 26, the high point reached by "total earning assets," this percentage was 34 per cent. Leaving out of consideration investments, which show a steady increase from $20,000,000 at the beginning of the year to $44,000,000 at the end, the total bills discounted and bought consisted principally of notes secured by Government obligations in the early months, the percentages showing 55 per cent at the low and 84 per cent on May 16, the high point. From this date on this proportion diminished and at the end of the year had declined to 38 per cent. The removal of the preferential that had hitherto existed upon Government obligations as collateral, accounts for the failure of notes thus secured to play an important part in the tremendous advance sustained in loans during the last half of the year, particularly in October, November, and December. On July 3, the total bills discounted and bought amounted to $284,000,000, partly made up of $208,000,000 paper secured by United States war obligations. On December 26, total bills discounted and bought amounted to $383,- 000,000, of which $147,000,000 was paper secured by United States war obligations. This involved a decline in percentage of from 73 to 38 during the last half of 1919. During the year 1919 there were approved 28,944 applications for rediscount for 951 banks, which compares with 22,864 applications approved for 850 banks in 1918. Bankers' acceptances aggregating $387,489,767 were purchased in the open market and from other Federal Reserve Banks at rates running from 4 to 5J per cent. The number of acceptors represented in these acceptances was 214. The total amount of advances to other Federal Reserve Banks through the rediscount of their bills during the year 1919 aggregated $1,323,338,000. This was distributed as follows: Atlanta $72,190, 000 Boston 10, 028, 000 Dallas 370, 975, 000 Philadelphia 575, 008, 000 Richmond 300,137, 000 Total 1, 328, 338, 000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

406 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. DEVELOPMENT OF THE TRADE ACCEPTANCE MARKET. During the year 1919 the Federal Reserve Bank of Chicago made an extensive canvass through its member banks to determine the development of the trade acceptance movement in the Seventh District. The barks reported the volume of trade acceptances offered for discount, as follows: Many bills offered, 28 banks; few bills offered, 230 banks; no bills offered, 581 banks. As to the rate of discount accorded trade acceptances, 36 banks granted a preferential rate and 221 banks took the bills at their ordinary rate of discount. Among the replies received as to the progress of the movement, 75 banks reported gains, while 713 banks reported no progress. From another point of view the trade acceptance movement has a more favorable appearance, namely, the trade acceptances unpaid at maturity appear to be remarkably few, and the banks generally throughout the district express a preference for trade acceptances over the commercial notes in ordinary use. During 1919 the Federal Reserve Bank of Chicago rediscounted approximately $6,580,000 of trade acceptances, or about $2,450,000 less than during the previous year. OPEN MARKET FOR BANKERS* ACCEPTANCES. The open market for acceptances is gradually developing in the Seventh District. A number of large banks in the reserve cities and some of the small banks outside of reserve cities are purchasing bankers' acceptances. The Federal Reserve Bank is assisting in the development of an open market for bankers' acceptances by purchasing such acceptances with a 15-day option to the broker to repurchase. The attitude, however, has been to discourage direct offerings by member banks. LIQUIDATION OF WAR PAPER. It is problematical, of course, as to how long a time will be required to enable the banks of this district to clear up their war paper, but this is being urged and encouraged wherever possible without harassing business. RESTRICTIONS TO CHECK SPECULATION. The policy has been to give assistance to member banks to care for their legitimate and seasonal requirements and Government financing. In cases where banks have shown a disposition to borrow continuously and heavily, efforts have been made to obtain information as to current conditions and the reasons for this unusual demand. If it is found that a bank is borrowing from the Federal Reserve Bank in order to secure additional working capital, or for profit, the borrowing bank is requested to liquidate its obligations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 7—CHICAGO. 407 TREND OF DEPOSITS. Net deposits opened the year at $211,000,000, gaming an advance of $85,000,000 to the high point of the year, $296,000,000 (July 18), before a recession set in which brought the figures back to practically the place at which the upward movement had started. The trend of deposits during the entire year was irregular and unusual, due to the artificial conditions produced by the consistently large borrowings of other Federal Reserve Banks. Commercial banking experience, that deposits grow with loans, was not followed in the Federal Reserve Bank of Chicago, due to the fact that the proceeds of these advances to other Federal Reserve Banks were not left on deposit as is the case when members borrow, but were transferred through the gold settlement fund to other Federal Reserve Banks. RESERVE POSITION CAREFULLY SAFEGUARDED. Demands upon the Federal Reserve Bank of Chicago, both from member banks and from other Federal Reserve Banks, were tremendous during 1919. From the highest point reached in the total net deposit and Federal Reserve note liability in 1918, which was $644,000,000 on Friday, December 6, this item steadily increased to $738,000,000 on December 26, using the weekly figures exclusively. On the date of this high record, cash reserves against net deposits and net circulation liability, stood at 50.6 per cent. Cash reserves against these two net liabilities for the entire year averaged 63.5 per cent, while the average for the first ten months of the year was 65.4. On three occasions during the first ten months the reserve percentage against net deposit and note liability fell below 60 per cent, namely, June 20—59.7 per cent, June 21—59.9 per cent, and June 30—58.5 per cent. The transfer of gold to other Federal Reserve Banks as proceeds of advances made to them for acceptances bought and notes and acceptances discounted in unusually large volume, resulted in a rather sharp and steady decline in reserve percentage beginning with the first week in November. The low point in the reserve percentage against net deposits and Federal Reserve note liability was reached December 29, when it touched 49.2 per cent. The low weekly reserve computed on Friday was 50.6 per cent. The percentage against this combined liability at the end of the year was 51.4 per cent. The average reserve by months in 1919 was: January 68. 3 May 64.8 September 64. 9 February 71.1 June 62.2 October 64. 4 March 67.3 July 63.2 November 55. 6 April 64. 4 I August. 63. 5 December 52. 4 GROWTH OF MEMBERSHIP. There were 44 State banks added to the membership roll of the Federal Reserve Bank of Chicago in 1919, while 6 State banks retired from membership, making a net increase for the year of 38 State banks. This class of membership stood at 326 banks on December 31, 1919. Of the 6 retiring banks, 3 became national banks. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

408 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. division of new members by States is Illinois, 5; Indiana 3; Iowa, ; 6; Michigan, 28; and Wisconsin, 2. There were 1,048 national bank members in the Seventh District December 31, 1919. The following tabulation gives the total State bank membership, according to States, in the Federal Reserve Bank of Chicago at the close of the year 1919: Dec. 31, 1919. Dec. 31, 1918 National. State. Total. National. State. Total. Illinois 319 61 380 316 57 373 Indiana.. 194 22 216 194 19 213 Iowa ' 354 80 434 354 77 431 Michigan 76 139 215 74 113 187 Wisconsin 105 24 129 107 22 129 Total 1,048 326 1,374 1,045 288 1,333 FIDUCIARY POWERS. Applications of 41 national banks in this district for authority to exercise fiduciary powers under section 11 (k) of the Federal Reserve Act were approved by the Federal Reserve Board during 1919. There were 54 such applications divided among the States as follows: Illinois, 15; Indiana, 15; Iowa, 15; Michigan, 4; and Wisconsin, 5. Of these, 10 were applications for additional fiduciary powers. Banks having these powers now number 146. DEPARTMENT OF BANK EXAMINATIONS. Owing to the fact that national banks are under the jurisdiction of the Comptroller of the Currency and that State banks are now and will remain under the jurisdiction of the various State banking departments, growth of the department of examinations must of necessity be slow. While the department has made direct examinations of both national and State member banks, the field work has been confined largely to cooperative examinations in connection with representatives of State banking departments, and credit examinations of State banks in connection with their applications for membership. During the year meetings were held separately with each of the five State banking departments, with practically a full attendance of every member connected with each department. These meetings resulted in a better understanding of the various matters of mutual interest, and the visitors gained a better knowledge of the Federal Reserve System and the operations of the Federal Reserve Bank of Chicago. At the same time the officers of the Federal Reserve Bank gained a much better idea of the conditions which confront the operation of the various State banking departments. The relations existing between the banking departments represented in the Seventh District and our examining department are pleasant and cordial and promise cooperation to the fullest extent in increasing the efficiency of the work in which there is mutual interest. The plan has been to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1—CHICAGO. 409 lay the foundation of the examining department along correct lines, which may be extended as demands are made upon it. STATE BANK RESERVES. The discrepancy existing between reserve percentage against deposits required by State banking laws and those obligatory under the Federal Reserve Act has been removed in the State of Iowa for Iowa State banks which become members of the Federal Reserve System. Thus two States in this district, Michigan and Iowa, have given recognition through their law-making bodies of the safety of smaller reserves for a bank which has the resources of a Federal Reserve Bank to draw upon in case of need. The attitude of banking departments in the three remaining States continues liberal toward the reserve percentages carried by banks under their jurisdiction which have become allied with the Federal Reserve System, but actual incorporation in their State laws of sections covering this point has not yet been accomplished. PART PLAYED IN GOVERNMENT FINANCING IN 1919. The Seventh Federal Reserve District was assigned a quota of $652,500,000 of the Victory loan, or more than 14 per cent of the total amount offered, $4,500,000,000. Total subscriptions were $772,046,550, 118 per cent of quota. Allotments made aggregated $694,330,000. There were 2,267,411 individual subscribers, with an average subscription of $340. To the fourth Liberty loan there were 4,300,312 subscribers, averaging $227 for each as compared with an average of $172 for 3,479,315 subscribers to the third loan. Payment on the fourth Liberty loan was completed in January. By the end of the year payments on the Victory loan had all been completed excepting three individual accounts totaling under $1,000, and deliveries of all notes had been made except approximately $5,000,000 registered notes which had yet to be received from the Treasury Department. Payments on the Victory Liberty loan were effected as follows: By cash, $212,516,011.45; by credit in war loan deposit account established by approved depositaries, $241,024,313.55; and by certificates of indebtedness, $240,789,000. The Liberty loan organization for the Seventh District functioned satisfactorily, and the result is a fitting tribute to those tireless workers who gave freely of their time and energy. During the year 1919 the banks of the Seventh Federal Reserve District purchased $1,001,727,000 " loan anticipation" certificates of indebtedness, 14 per cent of the total amount purchased by the banks of the entire country, and $605,818,500 tax anticipation certificates of indebtedness, 13 per cent of the total amount of tax anticipation certificates sold in the entire country. All of these certificates have matured or have been retired except $180,623,000 loan anticipation and $246,390,500 tax anticipation certificates. At the present time, therefore, 7| per cent of the total banking resources of this district are invested in United States Treasury certificates of indebtedness. The organization by which these certificates have been distributed was built upon the county unit. Each of the 338 counties in the district is in charge of two prominent resident bankers, who work closely with the director of Treasury certificate sales. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

410 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. DEPOSITS OF TREASURY FUNDS WITH BANKS IN 1919. The number of depositary banks increased during 1919 from 1,060 to 1,177. The maximum payment by credit to the war loan deposit account during the year was $143,062,704 on the occasion of the initial payment of the Victory Liberty loan. Total payments by credit upon the Victory Liberty loan were $242,055,211, more than one-third of the money required on this account. Payments for certificates of indebtedness purchased by banks during the year were made by credit to the amount of $1,021,000,000, which is 64 per cent of the certificates sold. Approved collateral held by custodians as security for deposits of Treasury funds reached a maximum on June 11, when the five custodians, one in each State, held a total of $231,061,870. On December 1 the minimum for the year was reached—$70,399,395. WAR SAVINGS—1919. The work of the Federal Reserve Bank of Chicago in the sale of war savings certificates and stamps during the year 1919 has been chiefly concerned with education. Until August 1 the war savings campaign was conducted on the State unit plan. Thereafter the five State organizations were molded into one district organization with headquarters in Chicago. Sales during the first nine months showed a steady decrease, but from October 1 sales showed a decided increase. During the months of October and November sales showed approximately 100 per cent increase over September sales. This increase is attributed to the sale of the new Treasury savings certificates. FEDERAL RESERVE NOTE ISSUE. The volume of the Federal Reserve notes of the Federal Reserve Bank of Chicago in circulation at the first of the year was $426,000,000, a figure reached after an expansion during 1918 of over $250,000,000. During the first half of 1919 this figure never exceeded $426,000,000. In fact, there were two rather substantial downward trends during this period. However, when pent-up buying power and the desire to employ it resulted in a tremendous advance in consumption, a great rise in commodity prices, and an increase in speculative operations, there was a correspondingly heavy demand for circulation media. From the end of July, during which month there was a reaction from the upward trend that developed at the end of June, the rise in the Federal Reserve note item was sharp and continuous until the end of the year. The net expansion for the year was $84,000,000, with Federal Reserve notes in actual circulation standing at $510,000,000 on December 26, 1919. (See Exhibit B and chart.) FEDERAL RESERVE BANK-NOTE ISSUE. On December 31, 1918, there were outstanding $18,525,800 in Federal Reserve bank notes. At the close of the year 1919 this item stood at $41,289,800. This expansion of more than $20,000,000 in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 7 CHICAGO. 411 denominations of principally $1 and $2 can be traced to the Pittman Act, to the increased demand for small bills, and to the policy of the Treasury in withholding silver certificates from circulation in order to use for minor coin the bullion resulting from the breaking up of standard silver dollars back of the silver certificates. At the close of the year there was $43,609,800 in United States securities on deposit with the United States Treasurer as security for outstanding Federal Reserve bank notes. POSITION OF COMMERCIAL BANKS. Condition of the commercial banks is fairly well reflected in the summary of the reports of 107 selected banks in this district as of December 26, 1919, which indicates that they were borrowing approximately 78 per cent of their reserves. They have borrowed $208,000,. 000, whereas their reserves both with Federal Reserve Bank and in vault were $265,000,000. Considering that vault cash is not legal reserve and that almost $78,000,000 of the above figure was represented by vault cash, it may be seen how heavily the banks are leaning on the Federal Reserve Bank of Chicago at this time. The interest rate on money for business bears a close relationship to the discount rate of the Federal Reserve Bank of Chicago and, with a 4f per cent rate on certificates of indebtedness, it is not thought that commercial paper will become any cheaper than 5^ per cent, at least for several months of the new year. Other factors which no doubt will keep money firm for the next few months are the continued strength of commercial and agricultural demand; the stagnation of agricultural credits that would have been liquidated with better shipping facilities; the large land settlements to be made in March—the aftermath of tremendous speculation in land; and, finally, the completion of the readjustment of war-time industries to a peace-time basis, though the past year has seen considerable progress in this direction. Meantime, there is a good market for commodities of all kinds and the danger of excessive stocks is reduced, owing to the rapidity of the turnover of merchandise, and the average merchant's belief that prices may commence to recede at any time. FEDERAL RESERVE CLEARING SYSTEM. The operations of the clearing system of the Federal Reserve Bank of Chicago continue to show a remarkable increase in volume. During the year 1919 the daily average of items handled by the transit department compared to the number handled in the same period of the previous year, showed an increase of 106 per cent. The number of items drawn on banks in Chicago increased 112 per cent, while the daily average of items drawn on banks outside of Chicago increased 121 per cent. There was an increase of 38 per cent in Government checks handled. The turnover in December averaged daily 29,462 Chicago items and 121,663 outside items, or a total of 151,125 which, with 7,223 Government checks, made a total average of 158,348. The 178983—20 27 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. largest volume in the history of the transit department was handled on December 15, 1919, when the business comprised 240,132 items, composed of 41,712 Chicago items, 191,405 items on banks outside of Chicago and 7,015 Government checks. There has been a marked increase in the number of banks on the par list of the Federal Reserve Bank of Chicago. At the close of business December 31, 1919, 5,271 banks out of a total of 5,564 in the Seventh District were on the par list. Illinois, Iowa, Indiana, and Michigan were 100 per cent par, all banks in Illinois and Iowa going on the par list November 1 and all in Indiana December 1, while Michigan reached the 100 per cent status December 31. The transit department inaugurated a merit system recently for the purpose of increasing the efficiency of the clerical force and this has brought gratifying results in reducing the number of errors in the sorting and listing of checks. LEASED WIRE SYSTEM. Owing to the volume of telegrams handled over the leased wire system during the past year, additional facilities have been acquired to the extent of approximately 2,500 miles, which makes the total mileage of the system 12,500. The Chicago-New York circuit was converted from a single wire to a full duplex, or two-way wire (doubling its capacity); branch banks were opened at Little Rock, Buffalo, Houston and Nashville, all being connected with their parent banks by leased wires; new wires were established between Chicago and Kansas City, also Richmond and Baltimore, to provide for increased business, which is being handled with great facility. TRANSFER OPERATIONS. The policy happily adopted in 1918 of promoting mail and telegraphic transfers of credit for the better mobilization of reserves, was continued throughout 1919. Uniform rates were maintained of 15 cents discount per day per thousand—say 5| per cent per annum— for mail purchases and 1\ cents discount per day per thousand for mail sales. Telegraphic transfers were made without charge and member banks have been encouraged to avail themselves of this great privilege for the conservation of their reserves and the effective utilization of their cash resources in all positions. The year 1919 showed a gain of 31.8 per cent in the total of transfers purchased by mail and by wire, the total being $4,205,247,000, against $3,188,602,000. Sales of transfers by mail and wire made a total of $1,115,010,000 against $498,329,000, an increase of 123 per cent for the year 1919. Total transfer operations, buying and selling by wire and by mail, amounted to $5,320,257,000, against $3,686,- 931,000, an increase of 44.3 per cent. COLLECTION DEPARTMENT. The collection department of the Federal Reserve Bank of Chicago was established on July 1, 1917, and for the balance of the year, as well as 1918, member banks did not use the service which it provided Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 7—CHICAGO. 413 to any considerable extent. Prior to July 1, 1918, a service charge of 10 cents per item was assessed, but, in order to add to services made available to member banks, this charge was waived thereafter* At the present time about 10 per cent of the member banks use our collection facilities, though country banks thus far have not shown much interest in the service. The following table will afford an idea of the volume of business handled in the department for the year 191.9: Received from— Items. Amounts. Federal Reserve Banks. 31,209 $81,846,903 Chicago banks 4,789 20,313,164 Member banks, district No. 7, outside Chicago.. 13,245 12,462,949 Discount department 9,117 201,459,117 Total 58,360 316,082,133 Figures for 1918 are not available in a form which would make a fair comparison, but with the daily increase in volume, future reports should be very interesting. Returns at par can be made for collections on points where there is a Federal Reserve Bank or branch and there are in the neighborhood of 300 banks in this district which remit at par for collections. These par points, together with the par points available through country banks in other districts, afford a saving in collection costs that can not be ignored by the member bank which is interested in using to the fullest extent the privilege to which membership entitles it. COLLATERAL DEPARTMENT. The heavy volume of business in the discount department of this bank made clear the necessity for the establishment of a collateral department which would work closely in harmony with the discount department, but maintain a strict individuality, this to enable the members of the department to concentrate exclusively upon the careful handling of securities used or to be used as collateral to loans to member banks. This department was therefore separated from the discount department almost a year ago, and since that time the collateral pledged to our member banks' bills payable, together with that unpledged, has been held in the custody of the collateral department. During the past year certificates of indebtedness having exceeded other forms of collateral, it has been necessary to release for redemption and credit an average of $10,000,000 for each maturing issue. For certain periods these maturities have occurred every fifteen days. The average shipments of securities for a weekly period total $25,000,000, made to 250 member banks. The largest total amount of securities hald in this department during the year was reached on May 3, $195,300,000. The total securities held at the close of business December 31, 1919, was $120,627,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. GOLD SETTLEMENT FUND. Daily settlements through the gold settlement fund continue to be advantageous to the Federal Reserve Banks in settling accounts among themselves, and the Federal Bank of Chicago has participated in these benefits. The summary of the year's transactions in all accounts results in a net gain through settlements of $988,841,000 and a net loss through transfers to other Federal Reserve Banks of $1,062,205,000, or a net loss for the year of $73,364,000. Balance in the gold settlement fund standing to the credit of the Federal Reserve Bank of Chicago on December 31, 1919, was $76,478,000. FOREIGN ACCOUNTS. Until after the middle of the year 1919 no new foreign accounts were established by the Federal Reserve Bank of Chicago, the so-called Bank of England sterling gold account being still on our books at $816,042.43. This account was closed out on April 2, 1919, and for three months no transactions in this direction were consummated. On July 17, by arrangement with the Federal Reserve Bank of New York, this bank participated to the extent of $11,018,766.56 in a credit to the Argentine Republic, and on September 17 the Bank of England sterling gold account was reopened with a balance of $5,412,154.05. The Bank of England account reached the high point of $17,422,349.63 on November 12 and closed the year at $15,627,105.15. The Argentine Republic account was gradually reduced from the initial amount to the figure $8,602,992.69 on October 31, which was maintained up to and including the end of the year. BANKING QUARTERS. During the year considerable attention has been given to the making of plans for the allotment of space to the different departments of the bank in the new building, the site for which was purchased during 1918, located at La Salle, Quincy, and Jackson Streets. The tremendous expansion in the volume of business, however, in the meantime has made it necessary to acquire temporary quarters, which provide an additional floor space of 25,000 square feet. When it is noted that more than 300 employees were added to the clerical force during the year the necessity for this unusual increase in floor space is evident. At the beginning of 1919 the floor space occupied by the bank proper, as well as its fiscal agency department, covered 60,000 square leet. The expansion in required floor space was made necessary chiefly by the growth of the transit department and, as a matter of fact, due to the falling off in the volume of fiscal agency operations, considerable floor space formerly occupied by this department has been given over to other departments of the bank. INTERNAL ORGANIZATIONS. The personnel of the board of directors of the Federal Reserve Bank of Chicago for the year 1919 was as follows: Class A—James B. Forgan, E. L. Johnson, and George M. Reynolds; Class B—John Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1 CHICAGO. 415 W. Blodgett, A. R. Erskine and A. H. Vogel; Class C—William A. Heath, E. T. Meredith, and James Simpson. For the year 1920 the board will remain the same with the exception of James B. Forgan,, whose term expired December 31, 1919, and who has been succeeded by C. H. McNider, of Mason City, Iowa. The chairman of the board and Federal Reserve agent remains the same as in 1918. The board held its usual regular monthly meetings during the year. The executive committee for the year 1919 was composed of James B. McDougal, governor; James B. Forgan, George M. Re}rnolds, James Simpson, and the Federal Reserve agent. This committee will serve during the year 1920, with the exception of James B. Forgan, who has retired from the board and whose successor has not as yet been appointed. The committee held two regular meetings each week during the year. The membership committee is composed of the Federal Reserve agent, James B. McDougal, and A. H. Vogel, a director. There were no changes in the official staff until the December meeting of the board, at which time three new official positions were created. E. L. Harris, formerly in charge of sales of certificates of indebtedness, was elected an official with the title, manager of bank relations and membership; W. K. Lyle, formerly chief clerk, and W. C. Bachman, formerly transit manager, were elected assistant cashiers, continuing in their former capacities; W. F. McLallen, assistant Federal Reserve agent, was reelected secretary of the board of directors. The Detroit branch had for its directors for the year 1919, John Ballantyne, Emory W. Clark, Julius H. Haass, Charles H. Hodges, and R. B. Locke. The officers are: R. B. Locke, manager and chairman of the board; W. R. Cation, cashier; and J. B. Dew, assistant cashier. The Federal Reserve agent is represented at the Detroit branch by John G. Baskin as assistant Federal Reserve agent, and H. N. Baxendale, acting assistant Federal Reserve agent. The following new departments were created and put into operation during the year: Bank relations and membership, planning, educational, and welfare. The first-named department will greatly facilitate the handling of bank relations and further promote a better understanding between the banks of the Seventh District and the Federal Reserve Bank, in addition to being of added service to banks considering membership. The planning department is an internal department, having supervision over all systems in use, and in addition thereto it will act in an advisory capacity to all other departments in changing or installing systems. The educational department will have control of all educational matters pertaining to the personnel of the bank, and when functioning to its fullest extent it will school all new employees in the work to which they have been designated. The welfare department cares for the physical and mental well-being of the employees and it is generally responsible for the proper morale of the organization. The statistical and analytical department, started in 1918, was expanded and took over the work of compiling statistical information other than departmental, both for the Board at Washington and for our own officers and members. This department is designed to function with the division of analysis and research and the statistical division of the Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

416 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. There were added to the staff of the department of examinations early in 1919, through appointment by the Federal Reserve Board, Mark A. Wilson, formerly an examiner for the State of Indiana, and Joseph M. Conway, formerly an examiner for the State of Michigan. At the beginning of the year 1919 there was a total of 833 employees on the pay roll, and at the close of business December 31, 1919, our records show 1,193 employees, including officers—an increase of 43 per cent. DETROIT BRANCH. During the year the Detroit branch of the Federal Reserve Bank of Chicago has fulfilled with satisfaction the functions assigned to it by the board of directors on November 27, 1917. The first full calendar year of its operation, 1919, has justified in every way its creation. On February 1, 1920, the Detroit branch will begin to exercise all the functions of a Federal Reserve Bank, except that of note issue and a few minor functions. Control will be vested in the board of directors of the Federal Reserve Bank of Chicago, who will appoint directors and officers of the branch, to serve at the pleasure of the board. Supervision of the accounts of the branch will be assigned to the auditor of the Federal Reserve Bank of Chicago. The territory in which the branch will operate consists of the following Michigan counties: Bay, Genesee, Hillsdale, Huron, Ingham, Jackson, Lapeer, Lenawee, Livingston, Macomb, Monroe, Oakland, Saginaw, Sanilac, Shiawassee, St. Clair, Tuscola, Washtenaw, Wayne. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

417 DISTEICT NO. 7—CHICAGO. EXHIBIT A.—Movement of principal earning assets of the Federal Reserve Bank of Chicago during the calendar year 1919. [In thousands of dollars.] 6 Discounted Total Date. w c p a U u a S t r r i p n t o e o e a i d n b t t r e e s l b s i s d . g e y a - - c p o O a u d t p n h i e s t e e r r . d (1+2.) c P e e n r t m i b n o B a o u r i k p l g l e e h s t n t . c b o o b a u d u n i n i l g s d l t h - s e t d . U s S e t n t i c a e i u t t s e e r . i s d - e a T a s r o s n e t i a t n s l g . Jan. 3 132,963 48,851 181,814 73.1 57,880 239,694 20.122 259,816 10 125,924 38,653 164,577 76.5 47,941 212,518 30,131 242,649 17 108,632 33,355 141,987 76.5 34,693 176,680 21,123 197,803 24 138,253 34,221 172,474 80.1 31,749 204,223 25.123 229,346 31 128,125 25,740 153,865 83.3 30,421 184,286 22,122 206,408 Feb. 7. 128,253 25,749 154,002 83.2 31,458 185,460 22,122 207,582 14. 131,878 20,812 152,690 86.4 34,709 187,399 , 21,122 208,521 20 154,870 17,952 172,822 89.6 33,249 206,071 i 21,122 227,193 28 162,708 15,861 178,569 91.1 32,676 211,245 I 21,122 232,367 Mar. 7. 155,544 15,219 170,763 91.1 32,586 203,349 21,088 224,437 14. 152,165 13,336 165,501 91.9 51,802 217,303 I 21,089 238,392 21. 191,704 14,903 208,607 92.7 49,253 255,860 21,088 276,948 28. 199,278 15,367 214,645 92.8 41,214 255,859 21,089 276,948 Apr. 4 206,595 16,545 223,140 92.6 39,291 262,431 21,088 283,519 11. 202,040 16,134 218,174 92.6 31,173 249,347 22,088 271,435 18. 200,298 17,701 217,999 91.0 27,548 245,547 23,089 268,636 25. 195,872 16,510 212,382 92.2 24,556 236,938 24,088 261,026 May 2. 209,305 14,473 223,778 93.5 26,306 250,084 24,088 274,172 9 200,037 14,266 214,303 93.3 23,952 238,255 25,088 263,343 J J S A u u e u l n p y g e t . . 2 2 2 2 1 2 1 2 1 2 1 1 3 5 6 1 8 2 9 7 0 8 5 5 6 3 1 3 9 . . . . . . . . . . . . . . . 2 1 1 1 1 2 2 1 1 1 1 1 2 1 2 1 2 1 8 8 9 0 3 5 8 8 0 8 9 0 9 1 9 0 9 2 3 8 1 8 8 7 6 5 0 8 3 2 2 3 5 1 2 8 , , , , , , , , , , , , , , , , , , 4 5 3 4 6 2 4 4 8 2 3 4 3 5 1 7 9 1 2 8 8 5 3 5 2 1 3 9 0 9 0 2 9 2 7 4 7 4 6 0 2 8 7 2 3 0 5 1 4 0 1 3 9 0 2 2 2 2 3 3 2 2 2 2 2 2 1 1 1 2 1 1 4 1 9 0 6 0 0 4 6 7 2 1 3 6 1 4 8 6 , , , , , , , , , , , , , , , , , , 4 5 9 5 2 0 1 3 2 9 8 3 1 1 6 9 8 5 7 7 2 6 2 2 9 2 1 2 2 8 9 2 0 8 8 7 7 6 8 5 8 5 9 4 3 3 5 4 7 3 4 0 2 4 2 2 2 2 2 2 1 2 2 2 2 1 2 2 2 2 2 2 0 0 1 6 1 1 1 8 1 2 1 2 3 1 1 0 3 4 5 8 9 5 2 2 3 5 4 0 5 2 8 1 6 9 5 6 , , , , , , , , , , , , , , , , , , 7 4 1 6 7 4 8 6 9 5 5 3 2 6 6 5 4 7 8 6 7 1 5 5 6 5 2 7 4 1 0 5 1 8 5 4 6 0 5 4 5 8 3 5 8 6 5 7 6 1 1 4 3 4 8 8 8 9 9 8 8 9 8 8 8 9 9 9 9 9 8 9 7 6 3 9 0 8 0 8 5 0 6 3 2 2 7 3 0 2 . . . . . . . . . . . . . . . . . . 6 1 5 1 7 4 3 7 0 1 1 3 3 2 2 9 7 4 4 5 4 4 4 4 4 4 5 3 3 5 5 5 2 2 3 2 9 3 6 4 2 5 0 3 5 0 6 4 0 2 7 4 8 7 , , , , , , , , , , , , , , , , , , 9 0 1 0 4 8 4 7 0 5 2 8 8 7 7 4 3 6 4 6 6 9 8 1 6 5 2 2 3 0 7 0 2 1 3 4 3 7 9 7 7 6 3 2 2 4 6 0 6 2 2 2 2 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 5 3 0 6 5 7 8 6 5 7 7 4 6 4 4 3 7 7 4 3 9 5 7 1 4 6 1 1 0 4 2 3 4 9 3 4 , , , , , , , , , , , , , , , , , , 1 8 1 9 4 3 1 9 5 4 4 0 7 7 9 2 9 3 0 6 5 1 9 7 1 5 1 2 1 9 1 8 0 3 8 8 3 1 5 3 7 9 5 5 4 2 5 3 4 9 6 7 7 4 3 3 3 3 3 3 3 3 8 3 2 2 2 2 2 2 2 8 7 4 9 6 0 1 1 3 0 5 9 8 6 5 7 7 , , , , , . , , , , , , , , , , . 2 0 0 0 0 0 0 0 3 0 0 0 0 1 0 0 0 8 8 8 8 8 8 8 8 1 8 8 8 8 1 8 8 8 3 9 8 9 9 9 8 8 2 9 8 8 8 9 8 8 8 3 3 3 2 3 2 2 2 3 2 3 3 3 2 2 2 2 2 1 0 9 9 9 0 1 1 9 9 0 7 0 0 7 7 9 6 9 3 0 9 1 3 7 4 7 6 1 0 0 1 1 0 1 5 , , , , , , , , , , , , , , , , , , 2 4 2 1 0 5 8 9 1 5 2 5 8 8 0 5 2 0 3 0 8 5 9 8 3 0 7 0 6 0 7 0 2 0 9 7 8 3 6 0 2 1 4 2 4 2 7 4 7 2 5 3 4 5 12. 139,657 32,371 172,028 81.1 42,967 214,995 108,119 261,114 19. 172,455 46,091 218,546 78.9 42,771 261,317 46,119 303,621 26. 181,605 52,749 234,354 77.5 38,557 272,911 42,304 318,228 Oct. 3. 165,002 48,903 213,905 77.1 40,826 254,731 45,317 301,424 10. 179,599 46,155 225,754 79.5 42,006 267,760 46,693 312,109 17. 186,790 57,022 243,812 76.6 43,358 287,170 44,349 332,169 24. 173,740 57,917 231,657 75.0 64,241 295,898 44,999 340,408 31. 170,269 51,825 222,094 76.7 92,402 314,496 44,510 358,678 Nov. 7. 180,944 72,097 253,041 71.5 103,674 356,715 44,182 400,973 14. 169,345 81,449 250,794 67.5 102,054 352,848 44,258 397,810 21. 176,503 88,956 265,459 66.5 99,923 365,382 44,962 410,095 28. 173,759 87,854 261,613 66.4 95,063 356,676 44,713 401,056 Dec. 5. 143,316 105,052 248,368 57.7 97,736 346,104 44,380 390,422 12. 135,715 107,984 243,699 55.7 105,917 349,616 44,318 393,978 19. 146,840 128,429 275,269 53.3 108,352 383,621 44,362 427,851 26. 44,230 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. fEDERALRESERVE BANK Of CHICAGO MOVEMmTpr EARNING ASSETS § DURING CALENDAR YEAR 1919. \ ISO i too A so Hi 0 UNITEDSTATES SECURITIES. 150 /SO 100 too mm SO SO 0 Attan'ANCES bOUGHT. W too 80 so 60 60 40 40 20 20 0 0 PERCENTAGE OnV/R PAPER TO TOTAL DISCOUNTS. 300 300 2S0 2S0 200 BOO TOTAL BILLS DISCOUfiTED, ^D;AlfP WAR PAPER/IY". TOTAL EARNING ASSETS. JAH\ FEB\MCh\ArRL\MAr\JUnfyUtf\AU6\SEPT\ OCT. \NOV\DEC. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

419 DISTRICT NO. 7—CHICAGO. FtPCMLRKEWEBAM Or CHICAGO i 1 NET DEPOSIT LIABILITY. F.R.MOTE CmCULATIOn. SB QtSHRESERVESJrtPRESERVERAMOJ9l9. 80 80 70 70 LA \ 60 60 SO 50 40 40 30 30 20 20 10 10 0 O RESERVE MTtO. (PERCENTAGE OF C+L). 500 400 300 200 100 DEPOSIT AM) ZRMOTEUABlUTJESsb, ANPTOTAL RESERVES/C\ JAN\ Ft Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

420 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT B.—Movement of gold and cash reserves, Federal Reserve note and net deposit liabilities, and the reserve percentage of the Federal Reserve Bank of Chicago during the calendar year 1919. [In thousands of dollars.] 6 Ratio of cash Federal reserves to Date. res G e o rv ld es. res C e a r s v h es. n R a o e c t s e t e u s r a v i l n e dep N o e s t its. (3+4.) a n n e d R t e d F s e e e p d rv o e e s r i a t l circulation. note liabilitias combined. Jan. 3. 406,609 408,554 426,129 211,366 637,495 64.1 10. 409,906 411,988 420,457 203,429 623,886 66.0 17, 447,742 450,180 412,859 204,345 617,204 72.9 24 419,898 422,196 410,265 210,913 621,178 68.0 31. 441,678 443,740 405,026 213,979 619,005 71.7 Feb. 7, 441,046 442,781 407,665 211,470 619,135 71.5 14. 467,762 469,158 409,884 236,348 646,232 72.6 20. 450,016 451,291 410,057 236,584 646,641 69.8 28. 448,346 449,722 410,806 239,160 649,966 69.2 Mar. 7. 464,602 465,715 415.139 242,123 657,262 70.9 14. 447,052 448,266 417,611 235,518 653,129 68.6 21. 416,088 417,509 418,932 240,926 659,858 63.3 28. 403,588 404,794 417,546 229,188 646,734 62.6 Apr-!?: 3 4 8 1 6 7 , , 2 0 4 6 9 5 3 4 8 1 7 8 , , 2 4 3 3 0 5 4 4 2 2 5 5, , 2 1 7 2 9 0 2 2 2 0 8 9 , , 1 9 4 5 6 3 6 6 3 5 5 3 , , 0 4 7 2 3 5 6 6 1 4 . . 0 0 422,944 424,297 423,145 234,042 657,187 64.6 18. 424,901 426,222 426,455 224,317 650,772 65.5 25. 425,978 427,105 422,296 241,781 664,077 64.3 May 2. 441,452 442,598 424,024 243,985 668,009 66.3 9. 443,837 445,123 422,396 249,702 672,098 66.2 16. 434,686 435,738 419,554 247,358 666,912 65.3 23. 404,006 404,934 422,327 244,420 666,747 60.7 29. 415,315 416,640 421,046 227,786 648,832 64.2 June 6. 411,499 412,646 418,271 225.630 643,901 64.1 13. 386,522 387,524 417,700 230,995 648,695 59.7 20. 404,093 405,202 421,672 235,131 656,803 61.7 27. 421,900 422,755 429,248 266,269 695,517 60.8 July 3. 422,788 423,552 427,211 255,196 682,407 62.1 11. 462,999 463,974 420,685 296,723 717,408 64.7 18. 426,828 427,781 423,393 262,599 685,992 62.4 25. 415,409 416,305 420,314 252,503 672,817 61.9 Aug. 1. 426,568 427,442 431,735 246,972 678,707 63.0 8. 415,588 417,217 429.140 258,131 687,271 60.7 15. 446,999 448,154 434,786 253,866 688,652 65.1 22. 457,835 458,735 439,744 257,221 696,965 65.8 29. 445,048 445,891 444,845 244,540 689,385 64.7 Sept. 5. 439,153 440,252 447,265 256,355 703,620 62.6 12. 458,965 460,007 447.173 218,172 665,345 69.1 19. 443,185 444,280 450,048 241,036 691,084 64.3 26. 439,557 440,617 457,059 243,411 700,470 62.9 Oct. 3. 474,873 475,963 462,546 255,781 718,327 66.3 10. 459,308 460,562 462,597 249,808 712,405 64.6 17. 437,639 439,076 463,729 247,002 710,731 61.8 24. 438,644 440,571 460,397 259,099 719,496 61.2 31. 433,040 435,407 467,103 265,320 732,423 59.4 Nov. 7. 381,397 383,816 464,896 258,298 723,194 53.1 14. 373,567 375,971 468,708 243,234 711,942 52.8 21. 367,482 369,871 475,062 243,466 718,528 51.5 28. 364,461 367,176 480,334 225,506 705,840 52.0 Dec. 5. 395,255 398,140 485,203 241,553 726,756 54.8 12. 373,251 375,391 207,654 705,828 53.2 19. 372,355 374,184 498.174 228,842 738,860 50.6 26. 510,018 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 7 CHICAGO. 421 EXHIBIT C.—Balance sheet—Comparative statement of condition of the Federal Reserve Bank of Chicago. Dec. 31,1919.Dec. 31,1918.Dec. 31,1917.Dec. 31,1916. ASSETS. Bills discounted members $286,908,175 $164,088,997 $105,923,175 $4,437,460 Bills discounted, bought 92,650,234 62,880,918 9,182,429 10,337,161 United States bonds and notes 44,265,100 20,121,500 10,384,600 10,375,100 Investments 1,325,760 Total earning assets . . . 423,823,509 247,091,416 125,490, 205 26,475,482 Real estate (site lor new building) 2,116,149 2,936,149 Interest accrued on United States bonds and notes.. 380,865 86,001 63,695 50,896 Premium on United States bonds 193,311 5 per cent redemption fund against Federal Reserve bank notes 1,888,150 829,390 Liberty loan bonds, S10 participation certificates 2,850 9,450 163,100 Furniture and fixtures . 28.304 Cost of unissued Federal Tteserve notes 67,957 Due from member banks, overdrafts 6,648 30,941 330,615 1,723 Due from Federal Reserve Banks 66,882,527 26,784,494 5,992,720 29,913,819 Federal Reserve Banks, transfers bought 3,570,000 6,565,000 8,178,412 Transit and exchanges for clearing house 51,350,405 41,060,921 19,868,657 4,692,553 Federal Reserve and national bank notes 42,358,644 26,819,995 10.635,500 2,986,185 Gold coin and gold certificates 24,181,000 23,234,185 32', 189,305 27,600,625 Bank of Fngland sterling gold account 15, 627.105 816,042 7,350,000 Other lawful monev 1,920,443 1,797,5*4 963,872 396,102 Gold settlement fund 76.478,739 106,772,373 58,960,460 26,183,000 Gold with Federal Reserve agent 243,604, 230 275,803,010 130, 723,530 Gold redemption fund Federal Reserve notes 19,533,109 15,151,205 646,490 200,000 Total cash reserve 381,344,627 423,574,360 230, 833,657 54,379,727 Other assets 545,878 1,399,491 349,181 Total assets 974,270,255 777,187,612 401,905,745 118,7S9,962 LIABILITIES. Capital paid in 12,347,150 11,185,050 9,091,700 6,683,550 Surplus 14,291,642 3,316,022 215,799 Profit and loss 61,978 Reserve for franchise tax 3,100,223 Discount on United States bonds 97,571 89,248 77,603 Unearned discount 1,417,073 514,586 318,087 46,451 Unearned interest, investments 6,051 Reserved for sundry expenses 196,644 19,612 4,833 5,391 Difference account 40,429 1,784 254 Federal Reserve notes outstanding 535,459,230 450,938,010 190,788,530 Federal Reserve bank notes outstanding 41,289,800 18,525,800 Federal Reserve bank transfers sold 200,000 3,700,116 1,471,347 Liberty loan $10 participation certificates sold 2,850 9,450 163,100 Uncollected funds 58,211,397 32,545,315 18,183,306 United States Government deposits 350,003 6,566,290 3,052,436 2,045,784 Due to Federal Reserve Banks 43,258,856 14,743,259 6,165,983 14,550,742 Due to member banks, reserves 257,978,903 230,604,383 169,174,348 95,390,012 Due to nonmember clearing banks 525,711 1,328,460 3,198,413 Due to foreign agencies 8,602,992 Total liabilities . 974,270,255 777,187,612 401,905,745 118,789,962 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8.—ST. LOUIS. WILLIAM MCC. MARTIN, Chairman and Federal Reserve Agent. INTRODUCTION. A marked change in financial and commercial activities took place during the year 1919. Attention was turned from winning the war to restoring conditions to a peace basis, and the banks in this district were called upon to finance a larger volume of commercial; industrial, and agricultural business than ever before. The usefulness of the Federal Reserve Bank was further demonstrated during 1919. It rendered valuable assistance in the flotation of the Victory loan and the various issues of certificates of indebtedness during the year, and also greatly aided member banks in taking care of increased commercial demands. Its rediscounting, clearing, collection, and other facilities were used to a greater extent than in any previous year. Measured both by the service rendered and the financial results of operation, the year 1919 was a most successful one for this bank, FINANCIAL RESULTS OF OPERATION. The gross earnings during the year 1919 amounted to $3,884,478.29 and the current expenses were $1,174,793.26, leaving net earnings of $2,709,685.03. This was an increase of $758,877.79 over the net earnings for 1918. After charging off $335,000 of the cost of bank premises, paying the dividends for 1919 amounting to $234,659.91, and setting aside a reserve of $19,519.44 to pay the Federal Reserve Board's assessment for the first six months of 1920, net profits of $2,120,494 were left for the year. These net profits were transferred to surplus account, making $3,723,805.22 in that account on December 31, 1919. The principal source of revenue during 1919 was bills discounted for member banks. Of the $3,884,478.29 of gross earnings, $2,918,462.08 w~as derived from this source. From the balance sheets of December 31, 1918 and 1919, it will be seen that the total resources of the Federal Reserve Bank of St. Louis increased from $220,189,394.05 on December 31, 1918, to $301,094,- 164.75 on December 31, 1919. Between those dates, its gross deposits increased from $88,203,789.46 to $131,963,641.07 and its earning assets increased from $85,717,141.81 to $128,874,552.62. The reserve deposits of member banks increased from $52,830,678.16 to $72,282,- 788.29 within that time, due in great measure to the admission of State banks- and trust companies into the system. DISCOUNT OPERATIONS. The total amount of paper discounted for member banks during 1919 was $2,100,630,595.51, exclusive of rediscounts for other Federal Reserve Banks and bankers7 acceptances purchased. Of this amount $226,478,442.35 was commercial or single-name paper, $7,946,180 consisted of trade acceptances, or two-name paper, and $1,866,205,- 974.16 consisted of member banks' 15-day collateral notes. Of the Digitized for FRASER 423 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

424 ANNUAL. REPORT OF THE FEDERAL RESERVE BOARD. $226,478,442.35 of commercial paner discounted, $33,082,706 was secured by Liberty bonds and certificates of indebtedness, and of the $1,866,205,974.16 of member banks' collateral notes, $1,862,163,474 was secured by such Government obligations. The total paper discounted for member banks during 1919 shows an increase of $1,015,- 493,341.29 over the amount discounted in 1918. The total number of bills handled during 1919 was 33,866, as follows: Rediscounts, 20,177; member banks7 collateral notes, 9,104; and bills bought, 4,585. Of the 540 member banks, 305 different member banks rediscounted with this bank during 1919, which is an increase of 27 over the number accommodated in 1918. During the year the Federal Reserve Bank of St. Louis rediscounted for the Federal Reserve Bank of Philadelphia $53,500,000, and for the Federal Reserve Bank of Richmond $86,709,000 of paper. This bank did not rediscount with any other Federal Reserve Bank, nor did it sell any of its bankers' acceptances to other Federal Reserve Banks during 1919. TRADE ACCEPTANCES. During 1919 this bank discounted a total of $7,946,180 of trade acceptances for member banks, which is a decrease of $7,735,021 as compared to 1918. However, this does not necessarily indicate that the use of the trade acceptance is declining in this district. On the contrary, it is our belief that the volume of trade acceptances materially increased during the year, but they were not rediscounted. Every effort has been made to encourage the use of trade acceptances, and throughout the year the Federal Reserve Bank maintained a preferential rate of discount for such paper ranging from one-quarter to one-half of 1 per cent lower taan the rates for other commercial paper of similar maturity. BANKERS' ACCEPTANCES. During the past year this bank purchased a total of $127,822,917.32 of bankers' acceptances, of waich $81,783,085.52 were purchased from banks and dealers in tne district and $46,039,831.80 from or tnrough other Federal Reserve Banks. Tnis is an increase of $97,175,284.14 over the amount purchased during 1918. Tne rates on these acceptances ranged from 4 to 5 per cent. During 1919 this bank continued its policy of encouraging the legitimate use of bankers' acceptances, and it is believed that substantial progress was made. It is estimated that approximately $80,000,000 bankers' acceptances were created in this district in 1919, and while many of these found their way into this bank, a substantial amount was sold by dealers to banks in other districts. The interdistrict distribution of bills has seemed desirable and we have largely confined our open market purchases to bills bearing the name of one bank in district No. 8 and of one name in another Federal Reserve district. When member banks in this district have offered their own acceptances, the rate of discount for commercial paper has been charged instead of the rate for indorsed bank bills, in an effort to discourage such practice. The rate on open market purchases has been subject to contract at time of offering, thus affording a measure of control over the improper use of bank bills. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8—ST. LOUIS. 425 The following member banks were authorized by the Federal Reserve Board during 1919 to accept up to 100 per cent of their capital and surplus, drafts and bills of exchange growing out of transactions involving the importation or exportation of goods, as provided in section 13 of the Federal Reserve Act: Liberty Bank, St. Louis, Mo., authorized April 18, 1919. First National Bank, St. Louis, Mo., authorized October 23, 1919. The addition of these two makes seven member banks in this district which have been granted permission to accept up to 100 per cent. RESERVE POSITION. The reserve position of the Federal Reserve Bank of St. Louis was well maintained throughout the year, and it was not necessary to rediscount with any other Federal Reserve Bank to build up the reserve. On December 31, 1919, the reserve of this bank against all liabilities was 47.7 per cent. MOVEMENT OF MEMBERSHIP. On January 1, 1919, the Federal Reserve Bank of St. Louis had a total of 513 member banks, consisting of 469 national banks and 44 State banks and trust companies. Its authorized capital was $7,599,200, of which one-half, or $3,799,600, was paid in. During the year 14 new national banks became members, 6 liquidated, and 5 consolidated with other national banks. Twenty-seven State banks and trust companies were admitted to membership, 1 consolidated with another member State bank, 1 converted into a national bank, and 1 withdrew from the system. On December 31, 1919, this bank had a total of 540 member banks, consisting of 472 national banks and 68 State banks and trust companies. Its authorized capital stock was $8,130,900, of which $4,064,450 was paid in. This shows a net increase in the paid-up capital stock of $264,850 over December 31, 1918. RELATIONS WITH NATIONAL BANK MEMBERS. Continued progress has been made during the past year in developing a closer relationship between the Federal Reserve Bank and its members. In addition to paying the charges on shipments of currency, assuming the cost of telegrams regarding money shipments or deposit transactions, making transfers of funds by wire, furnishing forms of financial statements for use by customers, and accepting United States bonds for safe-keeping, as previously inaugurated, the Federal Reserve Bank in March, 1919, began to assort currency for its members without charge and to furnish them with drafts for use in drawing on it or its branches. Thirty-three national banks in this district were granted permission by the Federal Reserve Board during 1919 to act as trustee, executor, etc., under the provisions of section 11 (k) of the Federal Reserve Act as amended by the act of September 26, 1918. Seven national banks which had been granted the fiduciary powers as originally provided by the Federal Reserve Act were authorized to exercise the additional powers conferred by the amendment of September 26, 1918. On December 31, 1919, there were 71 national banks in this district authorized to exercise fiduciary powers, of which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 ANNUAL REPOKT OF THE FEDERAL RESERVE BOARD. 10 were located in Arkansas, 15 in Illinois, 13 in Indiana, 18 in Kentucky, 1 in Mississippi, 13 in Missouri, and 1 in Tennessee. The Federal Reserve Bank of St. Louis has continued the practice started in April, 1918, of making deposits for national banks to their 5 per cent redemption account with the Treasurer of the United States at Washington, through the medium of the Federal Reserve Board and the gold settlement fund. RELATIONS WITH STATE BANKS AND TRUST COMPANIES. The solicitation of par points and the activities in connection with subscriptions to the Victory loan and the various issues of certificates of indebtedness during the year have brought the State banks and trust companies of the district into still closer touch with the Federal Reserve Bank. Also, many nonmember banks have borrowed through members from the Federal Reserve Bank on their Government securities, as authorized by the Federal Reserve Board, and this has caused them to appreciate more fully the service rendered by this bank. Increased interest has been manifested in membership by State banks and trust companies. Twenty-seven State banks and trust companies were admitted to membership during the year, making a total of 68 member State banks. A number of banks have expressed an intention to file application in the near future. Some are increasing their capital in order to be eligible to join. On December 31, 1919, there were 937 eligible nonmember State banks and trust companies in this district with total resources aggregating approximately $505,000,- 000. The total resources of the 68 member State banks and trust companies amounted to $413,412,927.91, which is over 45 per cent of the total resources of all the eligible State institutions in the district. Of the $72,282,788.29 of reserve deposits of all member banks in the Federal Reserve Bank of St. Louis on December 31, 1919, the reserves of the 68 member State banks and trust companies amounted to $21,971,031.71, or over 30 per cent of the total reserve deposits. The State banks and trust companies that are members have availed themselves freely of the facilities offered by the Federal Reserve Bank. Under arrangements with the banking departments of the States in this district, examiners for the Federal Reserve Bank participated jointly with State examiners in 48 examinations of 37 member State banks during 1919. The following table shows the work done, by States: Number of Number of Participamember State tions by State, State exami- Federal banks. nations. Reserve examiners. Arkansas... 14 Illinois 2 Indiana 2 Kentucky.. 9 Mississippi., Missouri 'ii Tennessee.. 10 48 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8—ST. LOUIS. 427 FEDERAL RESERVE NOTES. During the year the Federal Reserve agent received from the Comptroller of the Currency Federal Reserve notes aggregating $138,220,000 in the following denominations: Fives $33,860,000, tens $41,440,000, twenties $42,320,000, fifties $7,200,000, hundreds $4,400,000, five hundreds $1,000,000, thousands $2,000,000, five thousands $2,000,000, ten thousands $4,000,000. The Federal Reserve agent issued and reissued to the Federal Reserve Bank of St. Louis during 1919 against the pledge of gold and eligible paper a total of $134,025,000 of Federal Reserve notes, which is an increase of $31,420,000 over the amount issued the previous year. The greatest demand for notes was during the months of September, October, and November. The bank returned to the Federal Reserve agent a total of $14,315,000 fit Federal Reserve notes during the year. The Treasurer of the United States during 1919 redeemed out of the redemption fund maintained with him by the Federal Reserve agent $84,110,920 of unfit notes of the Federal Reserve Bank of St. Louis, which were turned over to the Comptroller of the Currency for destruction. The amount of Federal Reserve notes outstanding at the close of 1918 was $129,119,875. Adding the $134,025,000 of notes issued during 1919, and subtracting the $14,315,000 of fit notes returned by the bank to the Federal Reserve agent and the $84,110,920 of unfit notes redeemed, left a total of $164,718,955 Federal Reserve notes outstanding on December 31, 1919. To secure these outstanding notes there was $61,624,715 of gold deposited with the Federal Reserve agent and $110,358,070.82 of eligible paper hypothecated with him. Of the $164,718,955 Federal Reserve notes outstanding, $17,589,880 was held by the Federal Reserve Bank and its branches and $1,830,745 was in transit to Washington for redemption, leaving $145,298,330 in actual circulation on December 31, 1919. Out of the redemption fund maintained by the Federal Reserve Bank of St. Louis with the United States Treasurer, $2,031,550 of fit Federal Reserve notes were redeemed during the year, which were returned to the bank for reissuance. During 1919 the Federal Reserve Bank of St. Louis received from other Federal Reserve Banks for redemption or credit $50,469,925 of its own Federal Reserve notes and returned to other Federal Reserve Banks for redemption or credit $75,559,285 of their Federal Reserve notes. In other words, this bank returned $25,089,360 more notes of other banks than it received of its own. As wa» the case in 1918, the Federal Reserve Bank of Chicago returned to this bank more notes of the Federal Reserve Bank of St. Louis than did any other district. This bank also returned more notes of the Federal Reserve Bank of Chicago than of any other district. FEDERAL RESERVE BANK NOTES. During the year 1919, $16,304,000 of Federal Reserve bank notes were issued, consisting of $10,596,000 new circulation and $5,708,000 new notes to replace unfit ones. A total of $6,136,000 unfit Federal Reserve bank notes were redeemed during the year. 178983—20 28 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

428 ANNUAL EEPOKT OF THE FEDERAL RESERVE BOARD. The total Federal Reserve bank note circulation on December 31, 1919, was $17,068,000. These bank notes were secured by $17,068,000 of United States special certificates of indebtedness, deposited with the Treasurer of the United States. Of the $17,068,000 total circulation on December 31, 1919, there was with the Comptroller of the Currency $460,000 of unfit bank notes redeemed but not yet replaced by new notes, leaving a net circulation of $16,608,000. The Federal Reserve Bank and its branches also held $1,109,676 of bank notes, making the Federal Reserve bank notes in actual circulation at the end of the year $15,498,324. CLEARINGS. The check-clearing facilities of the Federal Reserve Bank were availed of both by member banks and nonmember banks to a greater extent during the year 1919 than in any previous year. The total number of clearing items handled by this bank and its branches during 1919 was 19,107,635, and the total amount was $6,008,535,869.76. This is an increase of 10,521,169 in number and $1,458,645,126 in amount over the year 1918. On December 31, 1918, the Federal Reserve Bank of St. Louis was collecting at par checks on 1,558 of the banks and trust companies in this district. During the year 1919, as a result of a campaign by correspondence and personal interviews, the number of banks on which checks were collectible at par through the Federal Reserve Bank was increased to 2,845, which is almost 90 per cent of the total banks in the district. Of the remaining 355 nonmember banks in this district with which arrangements have not yet been made to collect checks at par, 129 are located in Arkansas, 74 in Kentucky, and 152 in Mississippi. COLLECTIONS. Member banks during the year 1919 also made greater use of the facilities of the Federal Reserve Bank for the collection of such items as drafts, notes, coupons, acceptances, etc., than ever before. During the year this bank and its branches handled a total of 34,372 collection items, amounting to $87,257,166.92, not including coupons. This is an increase of 23,010 in number and $53,787,560.37 in amount over those handled in 1918. The number of Government coupons handled in 1919 was 5,653,395, and they amounted to $21,422,555.56. This shows an increase of 3,945,270 in number and $15,500,229.79 in amount over 1918. GOLD SETTLEMENT FUND. The gold settlement fund has continued to be an admirable medium for quick settlement of accounts between this bank and other Federal Reserve Banks. The totals of such settlements during the year show a steady increase. The balance to the credit of this bank in the gold settlement fund at the beginning of the year was $26,996,785.30. The total receipts through the gold settlement fund amounted to $5,364,011,300.60 and the total disbursements were $5,377,634,303.12 to December 26, 1919. The balance to the credit of this bank in said fund on the date mentioned was $13,373,782.78. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8—ST. LOUIS. 429 INTERNAL ORGANIZATION. At the close of 1919 the bank with its branches had 541 employees, including the officers, of whom 104 were engaged in fiscal agency work. At the close of 1918 the bank had 385 employees, of whom 126 were employed on fiscal agency work. BANKING QUARTERS. During 1919 the Federal Reserve Bank continued to occupy its quarters in the Federal Reserve Bank Building, at the northeast corner of Broadway and Pine Street, St. Louis, though it was necessary to take additional space in the building and to rent additional vault space in one of the local banks. As stated in the last annual report, this bank purchased for permanent quarters the premises formerly occupied by the St. Louis Union Trust Co. and the St. Louis Union Bank, on the northwest corner of Fourth and Locust Streets, and three pieces of property on Fourth Street contiguous to and immediately north of this property, making a frontage of 161 feet 4 inches on Fourth Street and a frontage of 87 feet on Locust Street. On November 19, 1919, the directors authorized the purchase of an additional area at the northeast corner of Broadway and Locust Street, fronting 65 feet on Broadway and 127 feet 3§ inches on Locust Street, provided that an alley 15 feet J inch wide could be vacated. The purchase of this additional property has been approved by the Federal Reserve Board and the deal is being consummated. When this matter is closed, this bank will own all of the property on the north side of Locust Street between Broadway and Fourth Street. It is proposed to have on this property a building extending from Broadway to Fourth Street, which will be sufficiently large to take care of the future as well as the present requirements of this bank. OPERATIONS OF FEDERAL RESERVE BANK BRANCHES. Louisville branch.—The total earnings of the Louisville branch for the year 1919 amounted to $352,694.28 and its expenses amounted to $134,241.76, leaving net earnings of $218,452.52. Of the total earnings, $343,919.06 was derived from bills discounted for member banks. During the year the Louisville branch discounted for member banks a total of $466,485,985.02 of paper and purchased a total of $1,073,899.76 of bankers' acceptances. At the close of the year the Louisville branch had 53 employees, including the officers, as compared to 23 at the close of 1918. The number of member banks assigned to it was 95. Memphis branch.—The total earnings of the Memphis branch for the year 1919 amounted to $571,591.51 and its expenses were $196,- 851.32, leaving net earnings of $374,740.19. Of the total earnings, $558,409.49 was derived from bills discounted for member banks. During the year the Memphis branch discounted for member banks a total of $286,295,260.25 of paper and purchased a total of $274,- 503.90 of bankers' acceptances. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

430 ANNUAL. REPORT OF THE FEDERAL RESERVE BOARD. At the end of the year the Memphis branch had 68 employees, including the officers, as compared to 29 employees at the close of 1918. Forty-two member banks were assigned to it. Little Rock branch.—The Little Rock branch was opened for business on January 6, 1919. The total earnings of the branch during the year amounted to $230,895.01 and its expenses amounted to $126,- 660.06, leaving net earnings of $104,234.95. Of the total earnings, $221,922.07 was derived from bills discounted for members. During the year the Little Rock branch discounted for member banks a total of $96,326,751.12 of paper and purchased a total of $3,331.12 of bankers' acceptances. At the close of the year the Little Rock branch had 38 employees, including the officers. The number of member banks assigned to it was 57. BRANCH BANK CONFERENCES. In order to foster a closer relationship between this bank and its branches, an invitation was extended to the officers and directors of the respective branches to meet with the officers and directors of this bank in St. Louis on April 16, 1919. The managers of the respective branches and a large number of the directors were present. Mr. J. A. Broderick, secretary of the Federal Reserve Board, also attended. A definite program was carried out. Mr. Broderick delivered a message from the Federal Reserve Board, reports were made by the managers of the branches, and important topics discussed by different directors and officers. This was the first conference not only of its kind in the history of this district but in the history of the system, and it proved highly beneficial. On December 29 and 30 a conference of the officers and field workers of the parent bank and its branches was held in St. Louis to discuss work in connection with increasing State bank membership. FISCAL AGENCY OPERATIONS. As fiscal agent of the United States Government, during the past year the Federal Reserve Bank of St. Loujs continued to receive and disburse funds for its account. Acting in this capacity, it also handled the sale and delivery of certificates of indebtedness, Victory Liberty loan notes, and war savings stamps in this district for the Treasury Department, and assisted in the work of the War Finance Corporation. It also attended to the exchange and conversion of Liberty bonds for the banks and the public. Treasury certificates of indebtedness. —As in the case of the previous Liberty loans, United States Treasury certificates of indebtedness were issued in anticipation of the Victory Liberty loan, and were used to a great extent by purchasers in making payment for the Victory notes. In anticipation of this loan, there were ten offerings of certificates of indebtedness, two of which were offered in December, 1918. The aggregate quota assigned to this district for the eight issues offered in 1919 amounted to $182,000,000, and the total subscriptions received aggregated $199,737,000. Of the 3,092 banking institutions in this district, 2,403, or 77.71 per cent, subscribed to these issues. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8—ST. LOUIS. 431 Flotation of Victory Liberty loan notes.—The campaign for the Victory Liberty loan opened on April 21, 1919. The amount of the loan was $4,500,000,000, and the quota assigned to this district was $202,393,500. This was the first district to meet its quota. The total subscriptions received amounted to $210,418,700, oversubscribing the quota by $8,025,200. Of these subscriptions, $201,787,600 were allotted by the Treasury Department. The number of subscribers was 505,001. Of the 3,098 banking institutions in this district 3,027, or 97.71 per cent, sent in subscriptions for themselves and their customers. Of the $210,418,700 subscriptions, $41,408,829.09 was paid in cash, $59,468,500 in Treasury certificates of indebtedness, and $100,910,270.91 by credit on the books of special Government depositaries. Deposits of Treasury funds with hanks and their withdrawal.—During the year 52 banks in this district qualified for deposits arising out of tlM sale of Victory Liberty loan notes and Treasury certificates of indebtedness. Adding those qualified prior to January 1, 1919, and deducting those not assenting to Treasury Department Circular No. 92, as amended and supplemented April 21, 1919, made a total of 480 Government depositaries at the end of the year. This bank had custody of all collateral offered as security for these deposits and performed all duties incident to the deposit and withdrawal of funds, collection of interest, etc. The largest amount of collateral in its custody at any one time was held on June 4, 1919, when the securities totaled $100,638,055.31. The largest amount of deposits outstanding with depositaries at any one time was $79,235,236.51 on June 5, 1919. The total amount of deposits made with depositaries during the year amounted to $411,370,232.36, of which at close of business December 31 about $28,058,201.36 was still outstanding. The interest collected by the Federal Reserve Bank for account of the United States Government on such deposits during the year amounted to about $631,668. War savings stamps, thrift stamps, and Treasury savings certificates.—During the 1919 savings campaign, 118,200 war savings stamps, with a maturity value of $591,000, and 44,905 thrift stamps, maturity value $11,226.25, were reported sold by agents in the Eighth Federal Reserve District. These sales show a material decrease as compared with the results obtained in 1918. War Finance Corporation.—The transactions on account of the War Finance Corporation greatly increased during 1919. In April the War Finance Corporation offered $200,000,000 series "A," 1-year 5 per cent gold bonds, dated April 1, 1919, and due April 1, 1920. The Federal Reserve Bank handled the subscriptions to this issue for this district. The subscriptions received amounted to $4,247,000. Only 187 of the 3,098 banking institutions in the district sent in subscriptions for themselves and their customers. Of the $4,247,000 subscriptions, $4,071,000 were paid in cash and $176,000 in Treasury certificates of indebtedness. The Federal Reserve Bank has also attended to the redemption and cancellation of the maturing coupons from the War Finance Corporation bonds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

432 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. POSITION OF COMMERCIAL BANKS AS A RESULT OF WAR FINANCING. A total of $201,787,600 of Victory Liberty loan bonds were allotted to the banks in district No. 8, which with the $710,804,500 bonds of the four previous issues, makes a total of $912,592,100 of Liberty bonds sold in this district. The total amount of certificates of indebtedness taken by this district to December 31, 1919, was $832,883,000, but of these certificates all had matured and been paid by the Government except $134,902,000. While the banks were urged to purchase the short-term certificates of indebtedness as issued, they have been discouraged from tying up their commercial deposits in long-term Government bonds, and the statistics available show that by far the greater portion of the bonds sold in this district have been absorbed by the general public. The 35 reporting banks in the five centers, St. Louis, Louisville, Memphis, Little Rock, and Evansville, which are the largest bpinks in the district, on December 26, 1919, held $5,501,000 of Victory notes, $14,782,000 of other Liberty bonds, and $22,247,000 of certificates of indebtedness, making a total of $42,530,000 war obligations, which is $29,014,000 less than the amount held by them at the end of 1918. On December 26, 1919, the total investments and loans of these 35 reporting banks, including the paper they had rediscounted with the Federal Reserve Bank, amounted to $591,306,000. Of this amount only $79,079,000, or 13 per cent, consisted of Government war obligations and loans secured by war obligations. BUSINESS CONDITIONS DURING 1919. The year 1919 began with business readjusting itself to peace conditions and feeling its way cautiously toward an uncertain future. There was a tendency in some quarters to buy only for immediate needs, but a tone of optimism prevailed which led most dealers to anticipate greater activity later in the year. The public at large cherished the belief that the end of the war would bring lower prices, and deferred making purchases in expectation of them. It soon became apparent that there was a scarcity of goods. Wholesalers and jobbers were unable to fill the orders of the retailers. Manufacturers were not prepared to meet the unexpected demands of the middlemen; they could not secure sufficient raw materials and production was further hampered by labor difficulties. The advancing market caused many buyers to order more than they needed so as to avoid rising prices, and this kited prices still higher. The prosperity of the district was due in large measure to the high prices received for its farm products. While the cotton crop was short, the fifth short crop in succession, yet the exceptionally high prices made up to producers in value whatever they might have lost m quantity. The winter wheat crop, which was expected to be unusually large, was disappointing, as the quality of the grain was inferior to last year's. The yield of tobacco was larger than usual, but the quality was variable. As with cotton, however, prices were higher than ordinary. The corn crop was somewhat larger than last Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT STO. 8—ST. LOUIS. 433 year's and also beyond the five-year average. The apple yield was very satisfactory. One of the outstanding features of the past year was the general labor unrest. At the beginning of the year it appeared as though the demobilization of the soldiers would cause a serious labor surplus, but the various agencies created to help find positions for the men and the fine spirit displayed by many concerns in taking back their former employees soon eliminated any possible danger from that source. With the rapid development of business, the labor surplus was converted at the beginning of summer into a shortage. This, together with numerous small strikes and other labor difficulties, interfered with business considerably. While the labor unrest was, to a considerable extent, the reflection of unsettled conditions elsewhere, it no doubt was also a natural consequence of the reaction to the constraint and routine of war discipline. However, the district was particularly fortunate in that it had no serious labor troubles. The strikes of the steelworkers and of the soft-coal miners caused no grievous injury to industry as a whole. Concerns were functioning normally again soon after the strikes ended. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

434 ANNUAL REPOET OF THE FEDERAL RESERVE BOARD. EXHIBIT A.—Movement of principal earning assets of the Federal Reserve Bank of St. Louis during the calendar year 1919. [In thousands of dollars.] 6 Discounted Date. o s S e b t U c a l p i u t g n a e r a p i e s t t e d e i w o r d b n a y s r . c p o O a d u t p i n h s e - t e e r r . d 1 and 2. c 1 P e 3 e n r t, m i b n o B a o u r i p k l g l e e h s n t t . b c b i o T o l a u l u o n s n g d t t d a h e l i t d s . - U S s i e t n t i c a e i u t t s e e r . s d - e a a T s r s o n e t i t a n s l g . Jan. 3 55,585 17,258 72,843 76.3 8,743 81,586 7,721 89,307 10. 56,196 14,492 70,688 79.5 8,334 79,022 8,221 87,243 17. 48,587 13,165 61,752 78.7 7,493 69,245 8,221 77,466 24. 50,088 10,883 60,971 82.2 6,820 67,791 8,221 76,012 31. 44,445 9,149 53,594 82.9 8,298 61,892 8,221 70,113 Feb. 7. 41,737 8,454 50,191 83.2 8,649 58,840 8,221 67,061 14. 43,025 7,279 50,304 85.5 15,268 65,572 8,222 73,794 20. 45,248 | 8,355 53,603 84.4 17,991 71,594 8,721 80,315 28. 49,282 ! 9,215 58,497 84.2 17,455 75,952 9,222 85,174 Mar. 7. 54,968 8,343 63,311 86.8 17,943 81,254 9,222 90,476 14. 57,931 8,197 66,128 87.6 17,366 83,494 9,221 92.715 21. 77,274 8,627 85,901 89.9 14,278 100,179 10,221 110,400 28. 66,536 11,820 78,356 84.9 13,453 91,809 11,221 103,030 Apr. 4. 73,806 10,896 84,702 87.1 13,334 98,036 12,721 110,757 11. 73,068 i 9,620 82,688 88.4 11,052 93,740 13,221 106,961 18. 71,320 ! 9,325 ! 80,645 88.4 8,476 89,121 13,221 102,342 25. 71,774 9,074 | 80,848 88.8 5,976 86,824 14,221 101,045 May 2. 68,052 9,680 77,732 87.5 4,263 81,995 14,721 96.716 9. 59,592 ! 8,003 I 67,595 88.2 3,806 71,401 15,343 86,744 16. 56,384 i 8,241 j 64,625 87.2 3,668 68,293 15,835 84,128 23. 61,625 I 8,726 i 70,351 87.6 4,443 74,794 15,835 90,629 29. 61,623 8,350 69,973 88.1 4,264 74,237 16,335 I 90,572 June 6. 53,956 | 9,567 j 63,523 84.9 5,360 20,335 ! 89,218 13. 62,903 I 10,436 ! 73,339 85.8 4,108 77,447 17,335 i 94,782 20. 58,579 j 10,070 85.3 6,893 75,542 17,830 93,372 27. 56,405 I 9,693 85.3 7,396 73,494 18,221 91,715 42,634 ! 11,159 53,793 79.3 8,505 62,298 18,221 80,519 July i!: 47,711 i 10,490 58,201 82.0 8,973 67,174 18,221 85,395 18. 46,636 ! 11,602 58.238 80.1 8,823 67,061 18,221 85,282 25. 49,858 ! 10,950 60,808 82.0 8,873 69,681 18,221 87,902 Aug. 1. 63,507 10,732 74.239 85.6 9,842 84,081 18,221 102,302 8. 59,490 10,271 69,761 85.3 9,612 79,373 18,221 97,594 15. 53,513 9,224 62,737 85.3 9,817 72,554 18,221 90,775 22. 60,095 9,458 69,553 86.4 8,500 78,053 18,221 96,274 29. 51,496 10,162 61,658 83.5 11,101 72,759 18,221 90,980 Sept. 5. 59,552 10,768 70,320 84.7 15,274 85,594 18,221 103,815 12. 60,400 14,230 74,630 80.9 14,918 89,548 18.221 107,769 19. 57,715 19,228 76,943 75.0 14,017 90,960 18.222 I 109,182 26. 60,181 24,357 84,538 71.2 11,077 95,615 18,221 113,836 Oct. 3. 59,685 32,473 92,158 64.8 9,106 101,264 18,221 j 119,485 10. 58,095 32,189 90,284 64.3 7,343 97,627 18,221 I 115,848 17. 56,966 26,059 83,025 68.6 7,444 90,469 18,252 108,721 24. 58,424 22,231 80,655 72.4 6,213 86,868 18,252 105,120 31. 53,748 23,826 77,574 69.3 9,634 87,208 18,221 105,429 Nov. 7. 48,297 21,977 70,274 68.7 18,544 18,237 107,055 14. 43,055 21,192 64,247 67.0 28,581 92,828 18,229 111,057 21. 45,614 23,273 68,887 66.2 29,077 97,964 18,622 116,586 28. 49,151 24,150 73,301 67.1 33,638 106,939 18,519 125,458 Dec. 5. 43,519 31,328 74,847 58.1 31,149 105,996 18,453 124,449 12. 36,126 31,270 67,396 53.6 31,971 99,367 18,291 117,658 19. 43,501 27,621 71,122 61.2 37,112 108,234 18,462 126,696 26. 44,142 34,093 78,235 56.4 36,936 115,171 18,369 133,540 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8—ST. LOUIS. 435 EXHIBIT B.—Movement of gold and cash reserves, Federal Reserve note and net deposit liabilities, and the reserve percentage of the Federal Reserve Bank of St. Louis during the calendar year 1919. [In thousands of dollars.] Ratio of cash re- Federal serves to Date. res G e o rv ld es. res C e a r s v h es. R n a o e c t s e t e u s r a v i l n e N po e s t i d ts e . - (3+4) n a e e n t r d a d l e F R p e o e d s - - it circulation, serve note liabilities combined. Jan. 3.. 86,587 88,971 119,139 48,120 167,259 53.2 10.. 90,562 92,863 116,141 52,795 168,936 55.0 17.. 98,642 100,907 112,949 54,267 167,216 60.3 24.. 96,452 98,862 109,126 54,427 163,553 60.4 31.. 109,928 112,486 109,367 62,314 171,681 65.5 Feb. 7.. 111,103 113,567 109,442 59,987 169,429 67.0 14.. 107,557 109,868 109,282 63,064 172,346 63.7 20.. 104,882 107,114 108,979 66,926 175,905 60.9 28.. 99,782 101,987 108,838 66,597 175,435 58.1 Mar. 7.. 95,017 97,322 108,431 67,200 175,631 55.4 14.. 86,908 89,218 107,708 61,850 169,558 52.0 21.. 68,374 70,572 107,025 61,251 168,276 41.9 28.. 72,925 75,080 108,015 56,568 164,583 45.6 Apr. 4.. 71,349 73,527 109,222 60,637 169,859 43.3 11.. 78,638 80,866 107,763 65,107 172,870 46.8 18.. 73,762 76,010 108,357 56,350 162,707 46.7 25.. 75,438 77,717 104,095 58,481 162,-676 47.8 May 2.. 82,351 84.719 105,020 59,557 164,577 51.5 9.. 89,236 91,672 104,081 56,920 161,001 56.9 16.. 101,684 103,911 105,491 64,369 169,860 61.2 23.. 85,851 88,059 103,365 56,959 160,324 54.9 29.. 93,173 95,482 104,180 62,933 167,113 57.1 June 6.. 85,148 87,505 103,909 53,535 157,444 55.6 13.. 92,546 95,193 103,159 67,221 170,380 55.9 20.. 88,019 90,908 102,740 61,722 164,462 55.3 - 27.. 84,856 87,906 102,860 56,313 159,173 55.2 July 3.. 92,970 96,233 104,350 52,179 156,529 61.5 Aug. 2 1 1 8 1 5 1 8 . . . . . . . . . . 9 8 9 9 9 8 6 4 3 5 2 2 , , , , , , 7 8 7 2 3 4 7 8 6 9 4 0 7 7 9 9 0 1 1 9 9 9 8 8 0 7 9 6 9 6 1 , , , , , , 5 8 4 3 2 3 1 3 0 3 2 2 7 4 5 8 9 3 1 1 1 1 1 1 0 0 0 0 0 0 3 4 6 6 5 5 , , , , , , 3 7 8 0 6 1 8 2 2 0 0 8 7 9 9 9 4 3 6 6 6 5 5 5 0 2 4 4 9 9 , , , , , , 6 1 2 9 6 2 8 5 8 9 9 2 2 9 1 5 3 3 1 1 1 1 1 6 6 6 6 6 4 0 4 7 5 , , , , , 1 6 4 2 7 6 2 2 2 9 4 4 7 2 1 6 5 5 5 5 0 9 1 4 9 . . . . . 6 9 0 8 3 2 1 2 5 . . . . 9 9 2 3 , , 4 2 9 9 4 9 9 98 7 , , 1 0 0 1 2 4 1 1 0 0 6 7 , , 2 15 6 2 0 6 60 5 , , 0 3 4 2 0 4 1 1 7 7 1 0 , , 5 5 8 4 4 6 5 5 9 6 . . 4 5 Sept. 2 1 5 9 2 . . . . . . 8 7 7 3 4 4 , , , 6 9 8 9 6 0 6 7 3 8 8 8 8 0 0 , , , 7 2 4 7 3 6 7 9 5 1 1 1 0 0 0 9 8 8 , , , 0 5 0 3 3 3 0 2 9 6 5 5 2 8 8 , , , 2 0 6 0 2 1 5 5 5 1 1 1 7 6 6 0 7 6 , , , 7 1 0 3 9 6 7 2 4 4 5 5 8 8 2 . . . 7 3 0 19.. 76,415 82,517 113,392 60,704 167,645 48.0 Oct. 2 3 6 . .. . 7 84 6 , , 8 7 2 4 0 1 9 8 0 2 , , 7 7 7 2 4 9 1 1 2 2 0 6 , , 4 4 2 3 0 8 5 5 7 9 , , 7 4 2 9 5 4 1 1 7 7 9 4, , 0 9 9 1 6 4 4 4 7 6 . . 4 0 10.. 97,295 103,029 128,315 61,018 184,163 49.3 17.. 98,362 103,896 128,611 58,052 189,333 54.4 24.. 106,060 111,227 130,760 62,908 186,663 55.7 31.. 108,059 112,893 135,580 &24 193,668 57.4 Nov. 1 7 4 . . . . 1 1 0 0 5 3 , , 9 5 3 1 7 0 1 10 1 8 0 , , 4 7 6 8 2 1 1 1 3 3 8 9 , , 2 6 8 3 2 4 6f$95 1 1 9 9 8 6 , , 7 9 7 0 7 4 5 55 7 . . 7 3 21.. 100,948 105,748 141,009 62,421 202,055 53.7 28.. 95,206 99,950 142,049 67,077 208,086 50.8 Dec. 5.. 106,099 109,466 142,710 59,343 201,392 49.6 12.. 93,109 95,668 147,704 61,712 204,422 53.5 19.. 94,267 96,507 148,452 52,278 199,982 47.8 26.. 59,038 207,490 46.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

436 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. rEPERALRESERVEBANKOESUOUIS MOVEMENT OFEARtiinG ASSETS DURIN6 CALENDAR YEAR 1919. UNITEDSTATES SECURITIES ACCCPTAHCES BOUGHT. too — • i MM —s 80 60 40 ZO O PERCENTAGE Of WAR PAPER TO TOTAL PISCOUIHTS. TOTAL BILLS DISCOUffTED, *D; ArtD WAR PAPER;W«. ISO /SO I2S TOTAL EARliWG ASSETS. . SEPt\OCT\lHOV\DEC. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTEICT NO. 8—ST. LOUIS. 437 I FEDERALRESERVEBANKOFSUOUIS NET DEPOSIT LIABILITY. F.R. NOTE CIRCULATION. CASH RESERVES. AliD RESERVE RATI0.I9I9. PO 70 60 60 f \ SO SO \ / 40 30 JO 20 20 10 10 O 0 RESERVE RATIO, (PERCENTAGEOrC+L). PS r.R.NOTE CIRCULATION. 2S DEPOS1TAM ER.NOTE LIABILITIES,*', sWD TOTAL RESERVES/Ci JAIi, FEB. MCH. APRL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

438 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT C.—Comparative balance sheets of Federal Reserve Bank oj St. Louis, including branches, as of Dec. 31, 1918 and 1919. Dec. 31,1919. Dec. 31,1918. RESOURCES. Reserve cash: Gold deposited with Federal Reserve agent $61,624,715.00 $66,673,935.00 Gold settlement fund 17,887,751.75 12,474,094.52 Gold redemption fund (United States Treasury) Federal Reserve notes 6,132,620.00 3,369,850.00 Gold coin and gold certificates 2, 757,127.50 3,056,010.00 Sterling gold account 6,172,049.99 233,154.97 Other lawful money 2,353,895.50 2,449,950.40 96,928,159.74 89,256,994.89 Deductions from gross deposits: Exchange forclearing house 3,460,255.75 1,735,820.86 Collection items 61,717,611.15 38, 731,733.06 National bank notes and banknotes of other Federal Reserve Banks 818,502.00 3,921,420.00 Federal Reserve notes of other Federal Reserve Banks 1,957,805.00 Unassorted currency 5,888,621.00 73,842,794.90 44,388,973.92 Earning assets: Bills discounted—members 77,679,473.26 70,702,653.85 Acceptances bought 32,803,679.36 7,293,087.96 United States bonds owned 1,153,400.00 1,153,400.00 United States certificates of indebtedness securing circulation Federal Reserve Bank notes 17,068,000.00 6,568,000.00 United States certificates of indebtedness (other) 170,000.00 128,874,552.62 85,717,141.81 Other assets: Interest accrued United States bonds and Treasury notes. 181,755.28 33,499.35 Deferred charges 17,263.35 8,551.80 Fiscal agent expenses due from. United States Treasurer... 105,203.98 448,223.89 Real estate owned 355,736.50 Due from War Finance Corporation 1,252.95 Unmatured Government coupons 111.81 Five per cent fund against Federal Reserve Bank notes 672,800.00 317,400.00 Overdrafts 1,046.64 Nickels and cents 113,486.98 "'1.8,'608." 39 1,448,657.49 826,283.43 Total resources. 301,094,164.75 220,189,394.05 LIABILITIES. Federal Reserve notes—actual circulation. 145,298,330.00 120,037,040.00 Gross deposits: United States Government deposits 2,352,383.96 3,333,007.84 Due to branches (net) 2,178,523.27 Due to member banks, reserve account 72,282,788.29 52,830,678.16 Due to nonmember banks—clearing account. 348,498.56 201,070.66 Cashiers' checks 199,436.62 1,750,667.31 Collection items 30,981,102.37 20,425,347.21 Gold settlement fund, suspense account 22,401,610.62 7,484,495.01 Foreign Government credits 3,397,820.65 131,963,641.07 8,203,789.46 Federal Reserve bank note circulation (secured by certificates of indebtedness) 15,498,324.00 6,216,000.00 Reserves: Sundry expenses 56,180.04 5,898.75 Federal Reserve Board assessments... 19,519.44 Depreciation on United States bonds.. 172,997.00 "172,997.66 248,696.48 178,895.75 Unearned discount and interest. 296,691.41 •- 14•- 9,98. 0...73 Difference account 226.57 776.89 296,917.98 150,757.62 Capital paid in., 4,064,450.00 3,799,600.00 Surplus 3,723,805.22 1,603,311.22 7,788,255.22 5,402,911.22 Totalliabilities.. 301,094,164.75 220,189,394.05 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 9—MINNEAPOLIS. JOHN H. RICH, Chairman and Federal Reserve Agent. The problems confronting the Federal Reserve Bank of Minneapolis during the year 1919 were largely those incident to the readjustments following the close of the war. The rapid expansion of its departments and growth of its staff during the period of the war terminated, but was followed by a considerable reorganization, and many changes and improvements in its methods of operation. The business and agricultural conditions confronting the institution were peculiar. The year opened with a period of decided hesitation, which lasted until after the spring planting season. A very favorable early crop outlook was followed by adverse conditions, which by midsummer had severely impaired the crop prospects in the western half of the district. This was followed in the fall by poor harvests. Business and industry were sluggish during the early part of the year, but gradually acquired greater momentum, and during the closing months of the year showed an activity limited only by the available labor supply and the ability to obtain goods and raw materials. The bank was able during the year to devote greater attention to the improvement of the service afforded its members, and with the termination of the successive war loan campaigns, had opportunity to give closer study than before to its own problems of organization and methods. The year was marked by a substantial increase of efficiency in all departments, and the results, from both the administrative and operating standpoints, were very satisfactory. RESULTS OF OPERATION. Earnings during 1919 were very satisfactory due to a considerably increased volume of business. The rediscounts for members within the district increased from an aggregate of $433,791,800 in 1918 to a total of $661,520,378, or more than eight times the volume of business for the year 1917. Gross earnings aggregated $3,007,040.72, from which were deducted the usual assessment for the expenses of the Federal Reserve Board, cost of Federal Reserve notes and Federal Reserve Bank notes during the year, and operating expenses aggregating $438,094.97. Under the authority of the Federal Reserve Board the bank was permitted to charge off against the purchase price of a site for a new building acquired late in the year, the sum of $100,000. A reserve for Federal Reserve Board expense was created, and dividends for the year, amounting to $180,186.21 were paid. The balance of earnings, amounting to $2,153,756.44, was transferred to surplus account, which was increased from $726,371.82 at the close of business in 1918 to $3,569,000.08. The capital and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

440 ANNUAL EEPORT OF THE FEDERAL RESERVE BOARD. surplus of the bank at the close of business in 1918 was $3,657,571.82. The capital and surplus December 31, 1919, was $6,642,950.08 Reference to the statement of condition at the close of the year will indicate a satisfactory increase in the u due to member banks account" representing reserves carried with this institution, and shows a reduction in the total of Federal Reserve notes and Federal Reserve Bank notes outstanding, during a year of a pronounced trend toward inflation. The satisfactory earnings of the year are fortunate in view of developments in the business of the bank which prompted the board of directors, in addition to acquiring the building site previously referred to, to proceed actively with arrangements for the construction of a reserve bank building, for which preliminary plans are now being drawn. These developments also made it necessary to authorize the establishment of a Montana branch, which will be located at Helena, and which will be opened during 1920. This involves the purchase of property, and the reconstruction of a building to provide a permanent home for the branch, and the building of satisfactory vaults. BUSINESS AND BANKING CONDITIONS DURING 1919. Business was slow during the first three months of the year. No improvement of consequence occurred until after the annual crop planting period. The acreages of the new crop were satisfactory, and conditions during the early growing season were favorable. In June, the adverse effects of the dry weather began to appear in the western half of North Dakota and in Montana, followed by serious damage to North Dakota crops by grasshoppers. Montana suffered from an almost total lack of rain during the growing season, and the crops were a failure, followed by very poor range conditions, which in the fall necessitated large shipments of stock out of the State on account of a shortage of feed. Much the same conditions existed in western North Dakota, which also sent out a considerable amount of live stock. Early winter weather conditions throughout the entire western half of the district were unusually severe. There were unseasonable low temperatures and heavy falls of snow, which continued until after the middle of December, causing losses to stock and seriously interfering with transportation. Weather conditions, plus the delayed movement of coal due to a strike of coal'handlers at Duluth and Superior, and the nation-wide coal strike compelled the railroads, at the termination of the labor troubles, to devote practically their entire attention to the distribution of coal to inland points. This created a serious car shortage and interfered with the movement of grain, farm produce, and commodities. During the last qxiarter of the year the transportation situation was such as to prevent the annual seasonal liquidation, which at the close of the year was three months delayed. As a consequence, commercial banks and the Federal Reserve Bank were subjected to severe strain, due to the unusual financing requirements. The sluggish business conditions during the early part of the year entirely disappeared by midsummer, and gave way t^ a large volume of retail business, accompanied by a period of land speculation and extravagance which had not subsided at the close of the year, although Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTEICT NO. 9—MINNEAPOLIS. 441 there were some signs of a reaction during the closing month of that period. These conditions were met by fractional advances in interest rates at the Federal Reserve Bank and at commercial banks. The increase in the volume of merchandising business was accompanied by a rapid restoration of normal activities in industrial lines. Plants that had been engaged in the output of war materials quickly converted to a normal production basis with steadily increasing orders, which before the end of the year gave them a volume of business limited only by their ability to accept new orders. The problem of the return of large numbers of men from military service, which it was believed earlier in the year might create a surplus of labor, was readily solved by the rapid increase in business and industrial activities. No conditions of unemployment resulted. Returning men were quickly absorbed by the farms and factories, and during the last half of the year labor was in keen demand with a very short supply. DISCOUNT POLICY. The discount policy of the bank remained unaltered, and the existing rate schedules were not revised until delayed liquidation necessitated a change in early November, except that the rate on member banks7 ] 5-day collateral notes secured by War Finance Corporation bonds was established at 5J per cent on April 4. On November 7, the 15-day rate on member banks' collateral notes secured by Government obligations was advanced one-fourth of 1 per cent, and on December 13 a second advance of one-fourth of 1 per cent on the same classification occurred, coupled with the same fractional advance upon commercial, agricultural, and live-stock paper maturing within 15 days. The volume of paper discounted for members showed some small increase in March, and ran up rapidly in April and May, due to crop planting operations and agricultural activity. During the midsummer months of June, July, and August, bills discounted fell off, advancing rapidly in September, and reaching the high point in October, from which there was a slight recession during November, but an advance during December, which again carried the total close to the October high point. The service afforded by the rediscount facilities of the bank was extended to 475 member institutions during the year, and covered 18,737 separate items, aggregating $661,520,378.37, as against $433,791,800.07 during the previous year. The importance assumed by collateral loans secured by eligible paper or Government obligations during 1918 became much more pronounced, this form of paper during 1919 aggregating $539,192,550, out of the total rediscounted for members. This may be accounted for in large part by the war loans prior to 1919, and the Victory loan coming just before the midyear. The close interrelations of the Federal Reserve Banks is well illustrated b}^ the sharp rise in rediscounts for other Federal Reserve Banks during the year, the amount of accommodation thus extended aggregating $428,613,000 as against $73,551,455 during the previous year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

442 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. TRADE ACCEPTANCES. Trade acceptances were discounted in varying amounts during each month of the year, but the volume fluctuated considerably. The rise and fall is a very uncertain guide as to the progress made in establishing the common use of this form of paper. The rediscount of acceptances was largely a matter of judgment and convenience on the part of rediscounting member banks. The total discounted during the year amounted to $565,114, but can hardly be accepted as an accurate indication of the usefulness of acceptances in the field of business, or of the progress they have made toward general adoption. The subject is one which has had active attention by credit men and business executives in many lines of trade, and evidence reaching this bank indicates that the advantages of the tradeacceptance form of settlement are better known than they were a year ago, and that progress is being made, although slowly, due to the difficulty of changing well-established trade customs and of altering methods that have become thoroughly established because of many years of use. DOMESTIC AND FOREIGN ACCEPTANCES. Until toward the close of the year the bank maintained its participation in open-market purchases of both domestic and foreign acceptances, acquiring a total amount of $128,000,000, of which $46,000,000 were acceptances based on domestic transactions. In late November, due to delay in liquidation in the district, the bank withdrew from the market and allowed the amount of acceptances to run down to moderate figures at the close of the year. GOLD POSITION OF THE BANK. The usefulness of the gold settlement fund was never better demonstrated than during 1919. The aggregate payments to other Federal Reserve Banks in the daily settlement aggregated $1,320,379,540, and payments to this bank aggregated $1,599,343,281. Due to the demand during the last quarter of the year, and the fact that at the close of the period the rediscounts for member banks were still very heavy, there was a net reduction in the combined gold holdings of the bank and the Federal Reserve agent of approximately $41,000,000, the reduction in both cases being due to adverse balances in the gold settlement fund. The holdings of the Federal Reserve agent of gold coin and gold certificates remained unchanged throughout the year. The foreign gold account of the bank increased $3,312000. ; The reduction in gold holdings is of a temporary nature, and the figures will change with the liquidation of the rediscounts held at the close of the year. The reserve position of the bank was strong during the greater part of the year. The ratio of reserves to net deposit and Federal Reserve note liabilities fell during the last quarter in consequence of the heavy demand of members, but the reduction was not sufficient to cause the discount of rediscounted paper with other Federal Reserve Banks. The bank closed the year without borrowing from other Federal Reserve institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT STO. 9—MINNEAPOLIS. 443 MEMBERSHIP. The membership of the Federal Reserve Bank of Minneapolis consisted at the beginning of the year of 886 banks. During the period 21 new national banks were chartered, acquiring membership upon organization. Sixteen additional State banks acquired membership by application to the Federal Reserve Board and 19 State banks acquired membership by conversion into national banks, a total gain of 56 members. Several member banks were succeeded by new institutions, absorbed by existing banks or consolidated with existing banks during the year. The loss from these cases included seven banks. There was a net gain, therefore, of 49 members during the year, and membership upon December 31, 1919, consisted of 915 banks. Since the date of organization, the Federal Reserve Bank of Minneapolis has acquired 88 State banks as members, while 98 additional State institutions have acquired membership by conversion, making a total of 181 State institutions which have taken membership. There were in the hands of the Federal Reserve Board at the close of 1919 a number of State bank membership applications upon which final action had not been taken, while there were in the hands of the bank additional applications in process of completion. The movement of State banks into membership has been satisfactory, and inquiry among those which are now members indicates that they fully appreciate the advantages afforded by affiliation with the Federal Reserve System. They have found no disadvantages of consequence and are warm supporters of the Federal Reserve System and firm believers in its value to State as well as national institutions. The volume of inquiry and correspondence from State banks interested in affiliating with the Federal Reserve System reached such proportions during the closing months of the year as to necessitate especial attention. Early in December, Mr. Harry Yaeger, vice president of the Great Falls National Bank, Great Falls, Mont., and secretary of the Montana Bankers7 Association, was called to Minneapolis and appointed as field representative of the Federal Reserve Bank. Shortly thereafter he entered upon his active work as representative of this institution, reporting to the chairman of the board of directors. RELATIONS WITH MEMBER AND NONMEMBER BANKS. Until after the midyear period, the activities of the bank in connection with Government financing overshadowed all other operations and were given precedence in accord with their importance. With a reduced burden of war work, the Federal Reserve Bank had an improved opportunity during the latter half of the year to study in detail its relation with its members and work out further methods of improving its service, eliminating possibilities of friction, and further cementing its cooperative relationship. Relations during the period of the war with all nonmember banks in the district were particularly satisfactory. The State institutions worked in closest cooperation- with the Federal Reserve Bank and contributed greatly to the efficiency with which Government financing 178983—20 29 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

444 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. in this district was handled. The bank had the advantage throughout the year of close and friendly relations with various State banking departments, and their active assistance in encouraging the movement of nonmember banks into membership. The check collection system showed a steady gain in importance throughout the year, and the volume of operations was substantially increased as compared with 1918. FIDUCIARY POWERS. National-bank members have shown much interest in the authority granted to the Federal Reserve Board under section 11 (k) of the Federal Reserve Act to authorize the exercise of trust powers subject to certain limitations. In Michigan the Federal Reserve Board has found it possible to extend these powers to approved banks in cities of 100,000 population having $150,000 capital or more, and in larger cities to banks having a capital of $300,000 or more. In Wisconsin banks in cities with less than 100,000 population, having $50,000 capital, are eligible, while in cities with more than 100,000 population the minimum capital requirement is $100,000. In Minnesota $50,000 capital is required in cities of less than 25,000 population, while in cities of from 25,000 to 100,000 population a capital of $75,000 is required. In cities of more than 100,000 and less than 200,000 population, the capital requirement is $100,000, while in cities with more than 200,000 population $200,000 is the capital required. In South Dakota the capital required in cities with less than 5,000 population is $50,000, while in cities with more than 5,000 population $100,000 capital is required. The requirement in North Dakota is $100,000 capital irrespective of population. The law in Montana is the same. These limitations have somewhat restricted the number of banks privileged to make application to the Federal Reserve Board, but permit many active and well-managed institutions to broaden their functions considerably. AUTHORIZATION TO ACCEPT TO 100 PER CENT. During 1919 two banks in the ninth district were authorized by the Federal Reserve Board to accept up to 100 per cent. FISCAL AGENCY OPERATIONS. The usefulness of investments in United States certificates of indebtedness, which had a practical demonstration to the banks in the district during the previous year, assisted the bank in handling the allotment during 1919 of 23 issues. These were widely distributed through the district among both member and nonmomber banks. The aggregate allotment to all groups amounted to $310,- 133,500, as compared with $285,379,500 comprising 21 issues during 1918. The distribution of the 1919 allotment is well illustrated by the fact that there were 14,335 subscriptions under allotments of $25,000 and less, aggregating $114,868,500, in which the smaller banks at very numerous points were well represented. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 9—MINNEAPOLIS. 445 VICTORY LOAN. With the fifth or Victory loan the series of great war loans was brought to an end. The quota for the Ninth Federal Reserve District was set at $157,500,000, and was again heavily oversubscribed, the total subscription reaching $172,226,750, apportioned among 846,953 different subscribers. The closing campaign was handled by the same organization that had successfully conducted the previous campaigns, under the direction of the Federal Reserve Bank. In noting the close of this period of heavy Government financing, it is worth while to record that in the first war loan the Ninth Federal Reserve District subscribed $75,926,250: in the second loan, $132,942,350; in the third loan, $180,920,450, and in the fourth, $242,046,050, aggregating, including the Victory loan, $804,061,850. CHECK CLEARING AND COLLECTION. The volume of business handled by the transit department has shown a steady and substantial increase during the past year. At the beginning of the year the average daily number of items handled was about 28,000, while at the end of the year the average number of items handled each day was approximately 48,000. This is in addition to the items exchanged through the Twin City Clearing House for the Minneapolis and St. Paul banks. The greatest number of items handled by the transit department on a single day was on December 15, when 68,480 checks passed. At the beginning of the year there were 2,035 banks on the par list out of a total of 3,713 banks in the district. On December 31 there were 3,825 banks in the Ninth Federal Reserve District, and the names of 2,800 of these appeared upon the par list. Of the latter number, 915 w^ere member banks and 1,885 were nonmember banks. Many of these banks were added to the par list as a result of several vigorous campaigns and special correspondence. In accordance with an announcement recently made that all banking institutions in Montana, North Dakota, and Michigan (that part in the Ninth Federal Reserve District) not on the par list would be added to it on January 1, 1920, nearly 400 banks were added to the par list. In view of the increased number of items drawn on banks in other Federal Reserve districts which were deposited by some of the larger member banks, several of these banks were granted the privilege of routing items of this nature direct to several of the other Federal Reserve Banks for credit with us, in order to facilitate the prompt handling of such items. After careful consideration, and feeling that the remittance plan was a fairer method of handling cash letters to member banks, this plan was placed in effect on December 1. In doing so it was also found possible to reorganize to a considerable extent the work of the transit department, greatly simplifying it. The Twin City Clearing House (Minneapolis and St. Paul banks), through which all of the banks in one city can promptly and expeditiously collect checks drawn on banks in the other city, showed a substantial gain in the amounts handled. The clearings for 1919 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

446 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. exceeded those of the previous year by nearly $600,000,000 and were more than double those of 1917. The volume of business handled through the transit department in 1919 aggregated $2,770,008,637.46, represented by 10,747,657 items, both figures showing very large increases as compared with the previous year. NOTE ISSUES. The quiet conditions that prevailed during early summer accounts to some extent for the lessened volume of Federal Reserve notes issued by the Federal Reserve Bank of Minneapolis during the year. There were received from the Comptroller of the Currency in Washington new Federal Reserve notes amounting to $27,600,000, in addition to which there were returned by the bank to the Federal Reserve agent fit for use notes aggregating $13,500,000, or a total of notes received during the year of $41,100,000. New Federal Reserve notes issued to the bank in response to the various demands of the year aggregated $29,550,000, in addition to which the bank received from the Federal Reserve agent $10,440,000 of fit-for-use notes. The total issue of $39,990,000 was less than the issue of 1918 by $17,150,000.^ At the close of business for 1919, there was a reduction in the outstanding Federal Reserve notes of $10,300,000, and an increase of $3,700,000 in Federal Reserve bank notes, the issue of which in this district has been confined to denominations of $1, $2, and $5, and the increase of which was largely brought about by the retirement of silver certificates. The net reduction in circulation of $6,600,000 is, it is believed by the officers of this bank, indicative of progress in the right direction. They believe that the actual reduction in circulation in the Ninth Federal Reserve District is greater than this figure indicates. There were substantial shipments of currency from the larger centers to eastern banks or the Treasury Department, further reducing the currency in circulation. There is also evidence that as currency went out from the district other currency appeared in circulation that during the war period was in hiding, but it is probable that the amount of money returned to circulation was not equivalent to that withdrawn. There was a variation during 1919 in the denomination of notes issued. The proportion of Federal Reserve notes of $5 denomination during 1918 to the total issued was 20.5 per cent. During 1919 this figure increased to 36.2 per cent. The proportion of Federal Reserve notes of $10 denomination issued during 1918 to the total issued was 43 per cent, but in 1919 the figure fell to 29.5 per cent. Federal Reserve notes of $20 denomination in 1918 represented 32.5 per cent, but in 1919 represented 29.7 per cent. There was also a reduction in the proportion of Federal Reserve notes in denominations of $50 and $100 issued during 1919. Federal Reserve notes in $500 and $1,000 denominations were available during 1919 and were issued in rather limited volume. The total amount of notes received by the Federal Reserve agent from the comptroller since the organization of the bank represented at the close of business in 1919 a total of $152,080,000. There were returned to the comptroller for destruction during the same period Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 9—MINNEAPOLIS. 447 $56,077,395. Federal Reserve notes outstanding on December 31, 1919, amounted to $88,442,605, with unissued notes to the amount of $7,560,000 in the hands of the Federal Reserve agent. There was outstanding on December 31, 1919, a total of $8,288,000 of Federal Reserve bank notes in denominations of $1, $2, and $5. There was an active interchange of notes with other Federal Reserve Banks during the year, due to the provision of law requiring each Federal Reserve Bank to segregate and immediately return to the bank of issue all Federal Reserve notes issued by another Federal Reserve Bank. The receipts of notes from other banks under this provision of law amounted to $39,606,635 in 1919, and there were returned to other Federal Reserve Banks $29,703,500. The Federal Reserve Bank of Chicago, being the nearest of other Federal Reserve Banks, forwarded and received larger amounts than any of the other institutions. Notes issued by the Federal Reserve Bank of Minneapolis and returned by the Federal Reserve Bank of Chicago aggregated $18,446,500, while notes returned to the Chicago institution by the Federal Reserve Bank of Minneapolis amounted to $15,714,000. The amounts received from and returned to the Federal Reserve Bank of New York, the Federal Reserve Bank of Kansas City, and the Federal Reserve Bank of San Francisco were substantial. The withdrawal and return of silver certificates to the Treasurer of the United States July 1, 1918, to December 31, 1919, aggregated $2,274,000. An interesting feature of the note operations during the year is the fact that there was a difference of only about $3,200,000 in the total amount of Federal Reserve notes issued by the Federal Reserve agent to the Federal Reserve Bank of Minneapolis and used and mutilated notes of this bank destroyed at Washington as unfit for further use, the destroyed being slightly less than the issue, and amounting during the year to $36,771,805. DEPOSITS OF TREASURY FUNDS WITH BANKS. There was some increase in the year in the number of depository banks in the Ninth Federal Reserve District. The account with the Treasurer of the United States showed aggregate deposits of $1,053,859,390.43 and withdrawals of $1,058,537,674.75. The balance of account at the end of December was $513,187.11, or a considerable reduction as compared with the average end of the month balances during the year. The experience of the previous year was of value in -conducting this branch of the bank's operations, and transactions with depository banks were handled smoothly and efficiently. BANK EXAMINATION DEPARTMENT. On March 1 there was established in the department of the Federal Reserve agent a bank examination division, of which Mr. O. A. Carlson was appointed manager. This division was charged with the duty of conducting examinations of State banks that have acquired membership and of handling such special examinations as may be required by the Federal Reserve Bank from time to time. From March l|to December 31 this department conducted 53 examina- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

448 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. tions, 50 of which were made jointly with the representatives of the different State departments. The banks examined ^represented total assets of $66,235,000, located in the States of Michigan, Minnesota;, Montana, North Dakota, South Dakota, and Wisconsin. In addition to examination work, 18 banks were interviewed with regard to membership, and the manager of the department devoted considerable time to other activities in the interest of the bank. The system of records developed by the department during the year shows an analysis of the reports of examination of State member banks and also of national banks placed upon the special list. The activities of the department involved travel during the year aggregating 25,673 miles. BOND AND COUPON DEPARTMENT. The transactions of the bond and coupon department were naturally small during 1917, and reached no very great volume during 1918. In 1919, however, the number of separate coupons handled increased to 5,192,950, representing a value of $14,396,271.81. The aggregate number of coupons handled to the end of the year, including 1917 and 1918, was 6,907,636 and the value $18,853,830.46. RESULTS OF WAR FINANCING. Deferred payments made during the early part of 1919 on previous subscriptions to the fourth Liberty loan were met in full in an amount aggregating $45,011,924.13. The Victory loan following immediately thereafter, and the successive issues of Treasury certificates, the number of which was increased by two as compared with 1918, carried war financing in its various forms well through the year. This unavoidably increased the obligations of all commercial banks during the greater part of the year, and constituted an element, which taken in connection with increased business and industrial activity, the very much higher costs incident to agricultural production, and the wave of extravagance and careless spending, which was especially noticeable during the latter part of the year, created peculiar burdens and produced an unusual strain upon credit. The district held at the close of the year grain, farm products, and commodities obviously sufficient to liquidate its obligations, but when confronted by serious transportation conditions, found great difficulty in moving the commodities to the markets and realizing upon them. During the last quarter it was found necessary to warn the public against extravagance because of the necessity of relieving the burden upon credit. Efforts were made to assist a return to normal through the encouragement of economy, thrift, and increased production of goods. No new financing of any consequence was noticeable during the early part of the year, and only in a conparatively limited amount during the latter part of 1919. At the end of the year the district was far short of its normal volume of construction, this situation being especially apparent at the larger centers, where housing conditions have become acute. There is every indication of a large volume of activities ahead, whenever the labor and material markets show a satisfactory condition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTKICT NO. 9—MINNEAPOLIS. 449 RESTORATION OF LIQUIDITY. The banks of the district have avoided large holdings of longtime obligations on their own account, although they participated freely in the various certificate issues. The amount of Liberty bonds and Victory notes taken on through failure of subscribers to complete deferred payments was insignificant as compared with the total. At the end of the year commercial banks were not holders of Government obligations to any large extent. There was a noticeable liquidation of Liberty bonds and Victory notes during the last quarter of the year, the volume of securities sold reaching substantial proportions, giving evidence that to some extent, and very possibly to a serious extent, the wave of free spending has impaired the savings that were represented by the bond investments of the people during the five war loan campaigns. Liquidation should have occurred in the Ninth Federal Reserve District beginning in September. The delay of more than three months which had occurred at the end of the year resulted in keen pressure but gave no evidence of creating a situation of more than temporary seriousness. It was noticeable that while the seasonal liquidation might not proceed at as rapid a rate as during 1918, it would be thorough and complete, with more favorable weather and transportation conditions. There were therefore no elements to cause apprehension as to the business or financial outlook. Moisture conditions in the western half of the district, which have been previously referred to, gave some encouragement to look forward to more than a satisfactory year from the standpoint of farm production. In endeavoring to curb the drift toward extravagance and to exercise such reasonable corrective influences as it is plainly obligated to do under the law and the regulations of the Federal Reserve Board, the Federal Reserve Bank, through fractional advances in its discount rates, sought to further these purposes and stood prepared to make further advances should occasion demand. A noticeable development of the year was the largely increased use of Government securities by member banks as collateral for short-time notes. In proportion to their volume, they altered the former disposition to borrow for longer periods. The people as a whole in asking accommodation at their banks likewise made free use of their Government securities and borrowed upon that collateral. RETIREMENT OF GOVERNOR THEODORE WOLD. It was with great regret that the board of directors of the Federal Reserve Bank of Minneapolis accepted the resignation of Theodore Wold as governor, effective October 1, after a period of service extending from the opening of this institution to that date. After his retirement, which followed the resignation of Mr. E. W. Decker as director, he was nominated and elected as director of class A for a three-year term beginning with the close of the year. Following his election Mr. Wold was asked to replace Mr. Decker on the executive committee, from which place the latter retired in consequence of his resignation as director. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

450 ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD. CHANGES DURING THE YEAR. Coincident with the election of Mr. Theodore Wold as class A director, the banks of group 1 in the annual fall election reelected Mr. F. R. Bigelow, of St. Paul, as director of class B for a three-year term beginning at the close of the year. After careful consideration the board of directors selected Mr. R. A. Young, who had served efficiently and with marked success as deputy governor of this institution, to succeed Mr. Wold as governor, effective October 1. Mr. Curtis L. Mosher was elected secretary of the board of directors to succeed Mr. Young. Mr. John W. Black, of Houghton, Mich., who had served as class C director since the founding of the bank, resigned in August in consequence of a change of residence, and was succeeded by Mr. C. H. Benedict, of Lake Linden, Mich., who was appointed by the Federal Reserve Board for the unexpired term. Mr. Benedict was reappointed by the Federal Reserve Board prior to the close of the year to serve a full term beginning January 1. During the latter part of December the Federal Reserve Board announced the appointment of Mr. John H. Rich as chairman and Federal Reserve agent for the year 1920, the redesignation of Mr. William H. Lightner, of St. Paul, as deputy chairman, and the redesignation oi Mr. Curtis L. Mosher as assistant Federal Reserve agent. In anticipation of the early opening of the Montana branch of the Federal Reserve Bank at Helena, for which provision was made by the board of directors in November, and approved by the Federal Reserve Board, Mr. O. A. Carlson, manager of the bank examination department in the office of the Federal Reserve agent, was elected manager of the new Montana branch. Tn view of the probability that a period of six months would be required before the branch could be opened, the board approved no further appointments, and the selection of other officers and staff for the branch was deferred. FEDERAL RESERVE CLUB. The sharp increase in the various departments of the bank during 1918 was followed by a more moderate rate of increase in 1919. The organization consisted of 264 officers and employees at the beginning of the year, and embraced 280 officers and employees at the close of the period. In addition to the various problems of accommodation, and the proper handling of the work, which again necessitated during 1919 the acquisition of additional space, it became apparent to the officers and department heads that the working forces had grown to a point where some method of providing for better contact and acquaintanceship was desirable. Upon the initiative of. the employees, the Federal Reserve club was formed in March. During the fall months it conducted valuable educational work, involving the study and discussion of the functions and activities of the Federal Reserve Bank and the study of the detail work of the various departments. This was supplemented by social activities, valuable and beneficial to the officers and employees alike, creating better acquaintance between the employees of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 9—MINNEAPOLIS. 451 different departments and augmenting the common interest and fellowship. Upon recommendation of the Federal Reserve club, and indorsed by the officers of the bank, the board of directors in November authorized the refunding of the cost of a correspondence course in modern business to employees, approved by the officers, who complete their studies with passing marks. Earlier in the year the directors recognized the educational value of the club's activities by making an appropriation in support of its work, which is supplemented by its own funds derived from memberships. CONCLUDING REMARKS. The spirit of cooperation which has animated all the departments during the year is recognized and can not be too strongly commended. While the bank has grown in usefulness and in efficiency with respect to its relations with its members, it has also grown in efficiency in the handling and expediting of its own intricate business. The departments have functioned well and have operated to the satisfaction of the officers and directors. The spirit which prevails in the bank is recognized by its officers and is considered by them as being a substantial guaranty of its future success. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

452 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT A.—Movement of principal earning assets of the Federal Reserve Bank of Min apolis during the calendar year 1919. [In thousands of dollars.] 1 2 3 4 6 7 Dis- Date. p c c U u a o S r p u n t e a e n i d t r t t e e e s b s d e d y -O c p t o h a u e p n r e t d e r. d is- 1+2. Per cent m i b n o B a o u r il p k g l e e s h n t t . b c i o T l a u l o s n n t d d t a e l i d s- se U S c n t u a i r t t i e e ti s d es e a a T s r s o n e t i a t n s l g . war obli- bought. gations. Jan. 3. 34,991 3,090 38,081 91.8 18,257 56,338 6,559 62,897 10. 34,874 3,087 37,961 91.9 18,364 56,325 5,245 61,570 17. 34,963 3,175 38,138 91.7 18,808 56,946 5,250 62,196 24., 18,458 2,906 21,364 86.4 18,396 39,760 9,629 49,389 31. 19,211 2,522 21,733 88.4 23,552 45,285 9,587 54,872 Feb. 7. 18,110 2,214 20,324 89.1 28,374 48,698 9,514 58,212 14. 15,999 1,937 17,936 89.2 26,570 44,506 9,419 53,925 20. 17,420 L,992 19,412 89.7 31,604 51,016 9,317 60,333 28. 15,724 1,776 17,500 89.9 30,361 47,861 9,256 57,117 Mar. 7. 16,285 L,486 17,771 91.6 33,711 51,482 9,826 61,308 14. 21,144 L,400 22,544 93.8 36,332 58,876 9,712 68,588 21. 27,356 L 404 28,760 95.3 33,611 62,371 9,455 71,826 28. 28,593 L,480 30,073 95.1 29,466 59,539 9,352 68,891 Apr. 4. 44, 707 L459 46,166 96.8 26,594 72,760 9,194 81,954 11. 42,040 3; 431 45,471 92.4 23,841 69,312 8,925 78,237 18. 37,069 7,294 44,363 83.5 21,229 65,592 8,935 74,527 25. 37,705 9,552 47,257 79.8 18,781 66,038 8,940 74,978 May 2. 41,835 5,059 46,894 89.2 15,066 61,960 8,998 70,958 9. 36,688 6,795 43,483 84.4 12,278 55,761 9,463 65,224 16. 43,191 4,088 47,279 91.4 10,417 57,696 9,406 67.102 23., 47,345 8,094 55,439 85.4 8,469 63,908 9,154 73,062 29. 45,184 5,361 50,545 89.4 7,088 57,633 9,297 66,930 June 6. 44,030 3,859 47,889 91.9 7,142 55,031 10,072 65.103 13. 47,038 3,947 50,985 92.3 8,753 59,738 9,882 69,620 20. 41,617 4,913 46,530 89.4 17,823 64,353 7,276 71,629 27. 39,110 4,908 44,018 88.8 18,786 62,804 7,286 70,090 July 3. 35,144 4,819 39,963 87.9 21,254 61,217 7,320 68,537 11. 34,012 4,223 38,235 89.0 22,473 60,708 7,323 68,031 18., 32,087 4,261 36,348 88.3 23,280 59,628 7,359 66,987 25. 35,168 4,095 39,263 89.6 24,058 63,321 7,296 70,617 Aug. 1. 25,617 3,927 29,544 86.7 24,748 54,292 7,213 61,505 8., 29,031 3,317 32,348 89.7 26,177 58,525 7,348 65,873 15.. 27,496 3,548 31,044 88.6 22,644 53,688 7,765 61,453 22., 30,664 3,836 34,500 88.9 21,195 55,695 7,706 63,401 29., 28,355 4,193 32,548 87.1 19,474 52,022 9,244 61,266 Sept. 5. 31,390 4,233 35,623 88.1 20,283 55,906 9,751 65,657 12. 36,463 4,576 41,039 88.8 22,110 63,149 8,257 71,406 19., 34,303 5,526 39,829 86.1 21,138 60,967 8,497 69,464 26., 34,586 8,272 42,858 80.7 19,622 62,480 8,411 70,891 Oct. 3.. 35,042 12,572 47,614 73.6 19,944 67,558 8,454 76,012 10.. 33,528 19,373 52,901 63.4 19,156 72,057 8,497 80,554 17. 37,203 21,823 59,026 63.0 19,270 78,296 9,057 87,353 24., 33,204 25,645 58,849 56.4 19,622 78,471 9,237 87,708 31. 33,766 22,033 55,799 60.5 19,190 74,989 8,561 83,550 Nov. 7.. 31,309 21,757 53,066 59.0 21,137 74,203 8,530 82,733 14. 29,569 22,073 51,642 57.3 22,018 73,6130 8,591 82,251 21.. 30,128 27,259 57,387 52.5 21,692 79,079 8,499 87,578 28.. 30,999 29,455 60,454 51.3 20,183 80,637 8,499 89,136 Dec. 5. 26,167 33,544 59,711 43.8 19,040 78,751 8,496 87,247 12. 22,600 38,752 61,352 36.8 17,363 78,715 8,496 87,211 19., 23,204 44,465 67,669 35.0 15,384 83,053 8,691 91,744 26., 22,465 4'r, 592 70,057 32.1 14,401 84,458 8,596 93,054 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 9—MINNEAPOLIS. 453 EXHIBIT B.—Movement of gold and cash reserves, Federal Reserve notes, and net deposit liabilities and the reserve percentage of the Federal Reserve Bank of Minneapolis during the calendar year 1919. [In thousands of dollars.] Ratio of cash Federal reserves Date. res G e o rv ld es. res C e a r s v h es. n R a o e c t s t e e u s r a v i l n e dep N o e s t its. (3+4). d t e o a p n n o d e s t it circulation. Federal Reserve note liabilities combined. Jan. 3. 82,158 82,233 96,311 40,421 136,732 60.1 10. 87,958 88,094 95,272 45,870 141,142 62.4 17. 89,398 89,603 93,184 49,973 143,157 62.6 24. 104,002 104,175 91,969 52,592 144,561 72.1 31. 98,767 98,948 90,528 54,171 144,699 68.4 Feb. 7. 85,779 85,968 89,986 44,979 134,965 63.7 14. 91,144 91,304 89,051 46,899 135,950 67.2 20. 90,961 " 91,134 88,812 53,184 141,996 64.2 28. 96,630 96,801 88,159 56,208 144,367 67.1 Mar. 7. 94,073 94,266 88,106 57,819 145,925 64.6 14. 84,671 84,783 87,972 55,585 143,557 59.1 21. 77,910 78,012 87,662 52,292 139,954 55.7 28: 75,823 75.938 87,058 47,796 134,854 66.3 Apr. 4. 64,292 64,404 87,151 49,198 136,349 47.2 11. 73,307 73,426 87,692 53,819 141,511 51.9 18. 72,029 72,159 87,224 49,249 136,473 52.9 25. 67,899 67,971 86,481 46,131 132,612 51.3 May 2. 72,134 72,208 87,980 44,982 132,962 54.3 9. 85,778 85,862 87,791 52,970 140,761 61.0 16. 87,151 87,222 86,505 57,275 143,780 60.7 23. 68,940 69,056 85,006 46,622 131,628 52.5 29. 75,632 75,738 83,894 48,161 132,055 57.4 June 6 78,738 78,832 82,629 50,494 133,123 59.2 13. 78,323 78,411 82,975 54,196 137,171 57.2 20. 76,288 76,375 82,417 54,502 136,919 55.8 27. 73,305 73,408 82,032 50,249 132,281 55.5 July 3. 82,822 82,914 82,203 57,934 140,137 59.2 11. 78,888 78,965 81,634 53,720 135,354 58.3 18. 80,793 80,880 80,759 55,343 136,102 59.4 25. 78,163 78,224 79,639 57,382 137,021 57.1 Aug. 1. 76,973 77,065 78,889 47,685 126,574 60.9 8. 76,231 76,315 77,972 52,006 129,978 58.7 15. 82,924 82,979 77,582 54,563 132,145 62.8 22. 81,384 84,456 77,231 55,130 132,361 61.5 29. 82,982 83,034 77,634 54,118 131,752 63.0 Sept. 5. 78,735 78,794 79,191 52,524 131,715 59.8 12. 72,109 72,170 79,742 51,075 130,817 55.2 19. 78,015 78,090 80,507 54,374 134,881 57.9 26. 77,038 77,086 82,399 52,336 134,735 57.2 Oct. 3. 76,161 76,227 83,406 55,479 138,885 54.9 10. 69,170 69,244 83,944 52,329 136,273 50.8 17. 68,795 68,858 83,979 58,554 142,533 48.3 24. 60,978 61,035 84,236 50,622 134,858 45.3 31. 65,330 65,417 83,848 51,299 135,147 48.4 Nov. 7. 69,462 69,542 83,969 54,289 138,258 50.3 14. 69,982 70,063 83,612 54,523 138,135 50.7 21. 65,849 65.939 83,786 55,369 139,155 47.4 28. 60,633 60,706 83,784 52,133 135,917 44.7 Dec. 5. 57,888 57,949 85,014 46,080 131,094 44.2 12. 58,308 58,367 85,169 46,357 131,526 44.4 19. 54,132 54,184 86,164 45,742 131,906 41.1 26. 51,173 51,245 87,475 42,643 130,118 39.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

454 ANNUAL REPOBT OF THE FEDERAL RESERVE BOARD. EEDEMLRESERVEBAHK OF MINNEAPOLIS MOVEMENT OF EARNING ASSETS 2: DURING CALENDAR YEAR 1919. 26- i 25 188 HI 0 ^^ UNITED STATES SECURITIES, ACCEPTANCES B0U6HT. 1QQ 80 60 60 i 40 | 40 EO 20 PERCENTAGE OF WAR PAPER TO TOTALDISCOUMS. TOTAL BILLS DISCOUNTED, -D/AND WAR PAPER,'W". TOTAL EARN!li6'ASSETS. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 9—MINNEAPOLIS. 455 52 FEDERALRESERVE BANK Of MINNEAPOLIS 1i NET DEPOSIT UA'SIUTY, F.R, MOTE CIRCULATION, i CASH RESERVES, AND RESERVE RATIO, WS. 1 1 80 70 A \ 70 60 60 \ SO 50 V ' \ 40 40 30 30 zg RO 10 10 0 0 RESERVE RATIO, frERCEliTA6E0FC+D< Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

456 ANNUAL. REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT C.—Balance sheet of the Federal Reserve Bank of Minneapolis. Dec. 31,1919. Dec. 31,1918. RESOURCES. Gold and gold certificates $8,275,000 $8,323,000 Gold settlement fund, Federal Reserve Board 4,872,000 23,774,000 Gold with foreign agencies 3,546,000 233,000 Total gold held by banks 16,693,000 32,330,000 Gold with Federal Reserve agents 35,847,000 55,869,000 Gold redemption fund 205,000 4,949,000 Total gold reserves 52,745,000 93,148,000 65,000 73,000 Legal-tender notes, silver, etc 52,810,000 '3,221,000 Total reserves Bills discounted: 22,331,000 31,528,000 Secured by Government war obligations 51,526,000 5,144,000 All other 12,600,000 17,994,000 Bills bought in open market Total bills on hand 86,457,000 54,666,000 United States Government bonds 115,000 121,000 United States certificates of indebtedness 8,480,000 5,146,000 Total earning assets 95,052,000 59,933,000 Bank premises 500,000 Uncollected items 24,406,000 13,124,000 5 per cent redemption fund against Federal Reserve bank notes 400.000 236,000 All other resources 145,000 179,000 Total resources 173,313,000 166,693,000 LIABILITIES. Capital paid in 3,074,000 2,931,000 Surplus 3,569,000 726,000 Government deposits 513,000 5,191,000 Due to members—reserve account 53,828,000 48,826,000 Deferred availability items 14,262,000 7,352,000 Other deposits, including foreign Government credits 2,262,000 15,000 Total gross deposits 70,865,000 61,384,000 Federal Reserve notes in circulation 87,187,000 96,571,000 Federal Reserve bank notes in circulation, net liability 8,200,000 4,169,000 All other liabilities 418,000 912,000 Total liabilities 173,313,000 166,693,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10—KANSAS CITY. ASA E. RAMSAY, Chairman and Federal Reserve Agent. INTRODUCTION. Notwithstanding the war activities of 1918, viewed from the volume of business transacted, service rendered to member banks, and the financial results of operation, the year just closed has been the most remarkable in the history of this bank. Reference is made to Exhibit C for detailed comparative statements of condition of the Federal Reserve Bank of Kansas City and branches at the close of business December 31, 1915, 1916, 1917, 1918, and 1919. FINANCIAL RESULTS OF OPERATION. The gross earnings from operations for the year were $4,961,481.91. The expenses were 11,186,069.34, leaving net earnings of $3,775,412.57, to which should be added $147,949.58 withdrawn from the reserve account established in previous years to take care of depreciation in United States bonds. The total net profits were therefore $3,923,- 362.15, or at the rate of 102.8 per cent per annum on the average capital. The revenues received from discounts were $3,888,839.25; acceptances, $340,875.06; interest on Government securities, $405,399.83; bank transfers, $198,748.86; penalties for deficient reserves, $106,704.52. The large items making up the aggregate expenses were officers7 salaries, $91,604.11; clerical and other employees, $497,379.52; rents, $31,819.50; telephone and telegraph, $15,967.63; postage and express, $81,236.62; printing and stationery, $49,781.97. The total actual operating expenses for the year were $891,544.61. The cost of issuing and redeeming Federal Reserve currency was $131,339.12; tax and expenses on note issues, $81,820.72; currency shipments, $27,075.04; while furniture, fixtures, and equipment for the year cost $54,289.85. A comparison of the net earnings of $3,775,412.57 for 1919 with earnings of previous years indicates in a very impressive way the enormous changes which have taken place, both in the sentiment of the member banks and in the necessity for accommodations during the year. The business for the year 1915, including the six weeks of 1914, showed a loss of $23,480.06; 1916 showed a net profit of $158,202.97; 1917, a net profit of $717,684.67; 1918, a net profit of $2,762,708.02. The total gross earnings since organization have been $9,840,046.68; total expenses, $2,412,512.90, leaving a net profit from November 1, 1914, to the close of business December 1, 1919, of $7,427,533.78. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

458 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Dividends were paid during the year 1919 aggregating $228,755.50; the balance, $3,694,606.65, was carried to surplus account, which increased that item to $6,116,033.36. During the five years the total dividends accrued and paid have been $969,694.44. Reference is made to Exhibit C for the 1919 balance sheet as of December 31, 1919, as compared to those for December 31, 1918, 1917, 1916, and 1915. DISCOUNT OPERATIONS. The loan transactions of the Federal Reserve Bank of Kansas City for the year 1919 were practically double those of 1918 in number and amount. A total of 16,024 transactions were handled for an aggregate amount of $1,555,596,621.30, compared with 9,240 transactions for an aggregate of $833,520,562.37 for the previous year. The aggregate amount of discount transactions for either the entire year of 1915 or 1916 is now frequently exceeded in a single day, and the combined total of all discount transactions since the organization of the bank in 1914 to the close of business December 31, 1918, is nearly a half billion dollars less than the amount of transactions handled in 1919. The largest increase is shown for paper secured by Government obligations. The business activities of the district are to a very large extent reflected through this class of paper, since paper secured by Government war obligations has been used as the most convenient method of borrowing. Notwithstanding the efforts of the Federal Reserve Board and this bank to check credit expansion, the demand for loans in this district has been heavier during the last half of the year than during the first six months. There was a steady growth in the volume of discount transactions, culminating in October, when the aggregate amount of loans handled was the highest for any month during the year, although the daily average earning assets of the bank were at their highest point during the month of December. There was no month during the year when any considerable amount of liquidation was apparent; in fact, the continuing heavy demand at the close of the year is rather disturbing when consideration is given to the seasonal demand with which we will undoubtedly be confronted early in the spring. ACCEPTANCES, The use of trade acceptances has not grown to any considerable extent in this district, being confined mainly to the distribution of oil. The educational program of credit men and of the large wholesale concerns has not resulted in any noticeable change in methods on the part of mercantile establishments. The volume of bankers' acceptances originating within the Tenth District has been relatively small, and the number of transactions representing offerings of this class of paper by local member banks has increased but slightly. The management of this bank has continued its policy of participating from time to time in open market acceptance transactions, both foreign and domestic, with the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10—KANSAS CITY. 459 RESERVE POSITION. The average reserve maintained during the past year has been in excess of the legal requirement, although considerably below the average maintained during the preceding year, the average for 1919 being 45 per cent, as compared with 55 per cent for 1918. The reduction is the natural consequence of increased operations and unprecedented demand for accommodation on the part of member banks. MOVEMENT OF MEMBERSHIP. During the past year there was a net increase of 42 member banks in this district, 21 of which were national banks and 21 State banks and trust companies. This makes the total membership in this district 1,036, of which 635 are served by the parent bank, 253 by the Omaha branch, and 148 by the Denver branch. Of the total membership 988 are national banks and 48 are State banks and trust companies. The legislatures of Colorado and Wyoming during their 1919 sessions failed to amend their banking laws in accordance with a bill prepared by the Federal Reserve Board which would give State banks becoming members of the Federal Reserve System all the privileges enjoyed by national banks, passing only that part which removed the restrictions as to the amount of indebtedness a State bank might create with the Federal Reserve Bank upon becoming a member of the Federal Reserve System, and rejecting that part which reduced the reserves to the amount required by the Federal Reserve Act. By reason of the failure of this part of the bill to pass the Colorado Legislature a great many State banks in Colorado are taking out national charters. In Nebraska the legislature passed a bill which includes all the provisions embodied in the bill prepared by the Federal Reserve Board. This has resulted in nine additional memberships in that State, and several applications which are now pending. The bill was not considered by the Kansas Legislature; as there was an effort made by some of the leaders of the body to pass a bill patterned very much after the Federal Reserve Act, which its sponsors claimed would do for the State banks of Kansas what the Federal Reserve Act was doing for its members. The bill failed to pass, but so much interest was centered on it as to render any other banking legislation impossible. Since the Federal Reserve Board directed that a branch of the Federal Reserve Bank of Kansas City be established at Oklahoma City, more than 40 State banks in Oklahoma have signified their willingness to become members of the Federal Reserve S}^stem. Many of these banks have already filed their applications, and it is anticipated that in a very short while the greater number will be members. FIDUCIARY POWERS. Following the approval on September 26, 1918, of the Phelan amendment to the Federal Reserve Act, a great deal of interest was manifested by national banks in this district regarding the exercise 178983—20—-30 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

460 ANNUAL. REPORT OF THE FEDERAL RESERVE BOARD. of fiduciary powers. Under the amended act permission has been granted 54 national banks to act in the various capacities, and in most instances the banks have applied and permits have been issued for all of the powers as authorized under this amendment. ; BANK EXAMINATIONS. The policy of this bank to accept examinations from the State authorities; in lieu of examinations made by Federal Reserve Bank examiners, has been continued throughout the year for the reason that the States of this district have well organized banking departments and competent examiners. The bank commissioners of Oklahoma, Nebraska, and Wyoming are requiring the State examiners to use the forms prepared by the Federal Eeserve Board in the examination of State bank members. On account of the increasing number of State bank members we have organized a staff of examiners who will, with the permission of State bank commissioners, join the State examiners in examining State bank members, and it is believed this concurrent examination will create a closer relationship with the State bank members and give them an opportunity to learn more of the operations of the Federal Reserve Bank. We are receiving effective cooperation from the banking departments of all the States of this district. FISCAL AGENCY OPERATIONS. In this year's activities, the fiscal agency department of this bank and the Government loan and savings organization continued under the direct supervision of the governor's office and successfully handled the Victory Liberty loan, numerous issues of loan and tax Treasury certificates of indebtedness, the sale of war savings and thrift stamps and Treasury savings certificates; in addition to which the fiscal agency department operations have included exchanges and conversions in constantly increasing volume and the handling of millions of coupons and Government checks. Treasury certificates of indebtedness in anticipation of the Victory loan were sold in this district in the amount of $187,745,000. Treasury certificates of indebtedness, series of 1920, were sold in the amount of $66,238,500, and certificates of the tax series were sold in the aggregate amount of $71,838,000. The total sales of Treasury certificates of indebtedness, including certificates issued in anticipation of the Victory Liberty loan, aggregated $325,821,500. At the close of the year 727 banks in this district were qualified war loan depositaries. These banks during the year had war loan deposits aggregating $306,450,555.54. The fact that withdrawals had been made less frequently during the last half of the year, encouraged many banks which had not heretofore qualified to take advantage of the privilege of becoming war loan depositaries. In the Victory Liberty loan, the campaign was conducted through a central organization under the direction of the governor's office of the Federal Reserve Bank. State campaign organizations were formed, each State being subdivided into districts containing a number of counties varying as to conditions and transportation Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTBICT NO. 10—KANSAS CITY. 461 facilities. Subscriptions to Victory notes aggregated $197,453,850 against a quota assigned by the Treasury Department of $196,928,- 250. There were 621,522 subscribers in this district. In addition to the accounting work and delivery of Victory loan notes aggregating $192,429,300, conversion transactions numbering 1,887,795 for an aggregate amount of $^141,800,700 were handled in the fiscal agency department; 966,730 transactions were handled in denominational exchanges aggregating $124,831,000, and 195,424 transfers and exchanges of registered for coupon bonds or coupon for registered bonds were made for an aggregate total of $111,183,100. There were also handled during the year in the fiscal agency department 6,790,539 Government warrants, Government bond coupons, and income-tax checks for a total of $209,591,783.61. The selling campaign for war savings and thrift stamps and Treasury savings certificates was conducted through the Government savings organization under direction of the governor's office. The maturity value of such securities sold in this district during the year aggregates $10,100,000. While this amount is less than the value of such securities sold during 1918, there was no active campaign conducted during the first half of the year, due to the fact that the savings campaign was subordinated to the campaign for the sale of Victory Liberty loan notes. War Finance Corporation transactions were handled during the year in the aggregate amount of $40,153,259.85, such transactions consisting principally of the sale of War Finance Corporation bonds and the purchase of Treasury certificates of indebtedness for account of the War Finance Corporation. NOTE ISSUES. The circulation of Federal Reserve notes at the end of 1919 was $104,089,255, a decrease of $8,356,035 from the amount outstanding at the end of 1918. However, during this period Federal Reserve bank notes increased from $11,448,481 to $19,532,700. Therefore the total outstanding note issues at the close of the last two years remained practically unchanged. The low tide of the year, as to outstanding Federal Reserve notes, was reached on August 7, 1919, at which time the circulation had been reduced to $91,353,820. During the year arrangements were completed for the issuance of Federal Reserve notes in $500 tod $1,000 denominations. POSITION OF COMMERCIAL BANKS AS A RESULT OF WAR FINANCING. Comparative statements at the close of this year and. last, as shown in Exhibit C accompanying this report, reflect a showing of member banks' obligations which may be taken as a general index to extension of credits throughout the district incidental to war financing and accentuated by the increasing high prices of commodities. It is impracticable to obtain accurate information as to the amount of credits directly attributable to war financing. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

462 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. The amount of loans carried by the banks of this district is far in excess of the amount of loans carried by them at the close of 1918; in turn the member banks have leaned heavily on the Federal Reserve Bank, as evidenced by the fact that on December 31, 1919, they had discounted bills and borrowed on their own notes the sum of $93,380,730.66, as compared,with $57,453,637.39 at the close of 1918. POLICY TO BE PURSUED IN RESTORING LIQUIDITY OF BANKS. The steady distribution to actual investors of Government securities carried by the banks for their own account and the liquidation of indebtedness incurred by patrons with which to purchase Liberty bonds, together with the marketing of the enormous quantity of agricultural products of district No. 10, retarded by lack of transportation facilities, will, within the next few months, enable the banks of this district to greatly contract the loans carried by them. This liquidation and permanent contraction of loans will be much encouraged by the adoption of a policy by the Federal Reserve Bank of gradually increasing discount rates to a point where profit will be eliminated on discount transactions with the Federal Reserve Bank. OPERATION OF FEDERAL RESERVE BANK BRANCHES. The volume of business transacted at the branches of the Federal Reserve Bank of Kansas City at Omaha, Nebr., and Denver, Colo., indicates that the service provided for member banks in the territory tributary to each has been of considerable value. During the year the general operations of the branches have been considerably extended, and as members have become more familiar with the service rendered they have been making correspondingly increased use of such service. The operation of the branches is under the direct control and supervision of the head office and the policies formulated by the management of the Federal Reserve Bank of Kansas City are closely followed at these branches, which have direct relations with the member banks in their respective territories in all ordinary transactions, with the exception of membership and fiscal agency operations. Omalia branch.—The extension of the service rendered in the general operations of the Omaha branch, together with the very greatly increased number of par points, has required that the number of employees be nearly doubled and that additional floor space be obtained. Discount transactions were at the maximum during the month of December. The volume remained fairly steady the first four months of the year, increased slightly over the period of floating the Victory Liberty loan, diminished to the low point in August, then steadily rose to the high point in December. In the clearing operations the average number of items handled daily has increased from approximately 10,000 at the beginning of the year to 22,000 at the close of the }rear. The total membership tributary to the Omaha branch, comprising the States of Nebraska and Wyoming, at the close of the year is 253, including 10 new State bank members. The fact that 199 out of the 253 member banks have had discount transactions with the branch is evidence of the increasing use of its facilities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTEICT NO. 10—KANSAS CITY. 463 There has been no change in either officers or directors during the year, the following having served the entire period: O. T. Eastman, manager; E. D. McAllister, cashier; Luther Drake, P. L. Hall, J. C. McNish, and K. O. Marnell, directors. The directors of the branch meet monthly; the executive committee, having supervision of operations in the interim, meets daily. Denver branch.—The territory served by the Denver branch is unchanged, being the State of Colorado and that part of New Mexico within the Tenth District. The total number of member banks at the close of the year in the Denver zone is 146, including five State bank members. While the increase in State bank membership has been small, there have been additions to the system through the nationalizing of State banks, which course appears to be the more popular one in this section. The member banks in the Denver territory have not used the facilities at the branch to as large an extent as have the banks in the zone served by the Omaha branch. The discount department has accommodated, however, during the year 1919, 86 of the 148 members, and the other facilities of the branch have been used in some degree by practically all members. The banks in the territory of this branch have had a successful year; deposits have increased and profits have shown corresponding gains. The demand for accommodations from member banks, as compared with the year 1918, was heavier during the first five months, but lighter during the next five months. The demand during November was approximately the same both years, but decidedly stronger during December, 1919, with the result that the amount of loans carried by the Denver branch reached its peak on December 31, 1919. Clearing operations have continuously increased, and at the close of the year the Denver branch handled an average of approximately 20,000 items per day, as compared with a daily average of little more than 9,000 items during the latter part of December, 1918. The number of employees at the close of 1919 is 56, as compared with 38 in December, 1918. There has been no change in the directorate or the official staff, the members thereof being as follows: C. A. Burkhardt, manager; P. R. Fredman, acting cashier; Alva Adams, John Evans, A. C. Foster, and C. C. Parks, directors. The regular meetings of the board of directors are held monthly, the executive committee meeting daily to pass upon offerings for discount and other important matters, its findings being reviewed by the board. Oklahoma City branch,—In December, 1919, the Federal Reserve Board authorized the establishment of a branch office at Oklahoma City, to be operated along the lines governing the operations of the branch banks at Cincinnati, Pittsburgh, and Buffalo. This branch will receive deposits from member banks, but will carry no deposit accounts; all amounts received on deposit will be transmitted daily to the Federal Reserve Bank of Kansas City for credit to the accounts of* the depositing banks. The branch will carry no earning assets; applications for loans or discounts from member banks will be transmitted to the head office for final action. The principal functions to be exercised by the branch will be the clearing and collection of checks and the handling of shipments of currency to and from banks in its territory. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

464 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. The Oklahoma City branch will commence operations as soon as suitable quarters and equipment can be obtained. MISCELLANEOUS. The personnel of the directorate is the same as in 1918. Messrs. Bailey and McClure, classes A and B directors, respectively, were reelected to succeed themselves. Mr. E. F. Swinney was reappointed as member of Advisory Council for this district. There were several changes in the official staff during the year. March 1, 1919, J. L. Cross, deputy governor, resigned to become connected with an eastern banking institution, and C. A. Worthington, formerly assistant cashier, was elected assistant to the governor. May 1, 1919, Arch W. Anderson, secretary-cashier, resigned to engage in commercial business, and J. W. Helm, formerly assistant cashier, was elected acting cashier. C. K. Boardman, in addition to serving as assistant Federal Reserve agent, was elected secretary. For the balance of the year the official staff was constituted as follows: Operating department.—J. Z. Miller, jr., governor; C. A. Worthington, assistant to governor; J. W. Helm, acting cashier; John Philips, jr., assistant cashier, manager fiscal agency department; E, P. Tyner, assistant cashier, manager transit department; L. H. Earhart, assistant cashier, accounting and analysis departments; G. E. Barley, assistant cashier, manager certificates of indebtedness division; C. E. Daniel, assistant cashier, discount department; M. W. E. Park, assistant cashier, currency department. Federal Reserve agent department.—Asa E. Ramsay, Federal Reserve agent, chairman board of directors; C. K. Boardman, assistant Federal Reserve agent, secretary board of directors. Auditing department.—S. A. Wardell, auditor; Alfred E. Bolt, assistant auditor. Although there has been a decrease in the number of employees in the fiscal agency department since the activities connected with the Victory Liberty loan have terminated, the increased activities of the discount and transit departments, as well as other departments of the bank, have necessitated increases in the number of employees, the total number at the close of the year being 571, of whom 433 are at the head office in Kansas City, 82 at the Omaha branch, and 56 at the Denver branch. A continuance of the practice of holding daily officers7 conferences for the discussion of points of general interest, has resulted in a closer cooperation between departments and a broader general knowledge of the transactions of the bank by all of its officials. Notwithstanding the increase of operations, it is felt that the work of the bank has been conducted satisfactorily and an increasing degree of efficiency is noticeable. CLEARINGS. Clearing operations of the bank have been^conducted on an everincreasing scale during the year. An active campaign for par|points was inaugurated in September, which has resulted infthe addition to the par list of all the nonpar banks in the district, effective with the beginning of the year 1920. Approximately 1,000 banks^have been Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10—KANSAS CITY. 465 added to the par list during the year. From an average of less than 50,000 items daily at the beginning of the year, during the latter part of December the number of items handled in the transit department has grown to an average of approximately 120,000 items daily. These figures do not include Government checks and coupons which are handled in the fiscal agency department, nor items handled at the branches. The increase in the volume of clearing business has been proportionate at the Omaha and Denver branches, and including the two branches this bank is now handling transit items aggregating approximately 155,000 items per day. The collection facilities provided for maturing notes and bills and items of like character have been used by member banks to a considerably greater extent during the last few months of the year, and approximately 100 of such items are now being handled daily. Member banks which have availed themselves of this privilege are enthusiastic over the service, but like all other extensions in our facilities, many member banks do not promptly realize their benefits. The daily settling of balances between Federal Reserve districts through the gold settlement fund has continued to benefit the banking and business interests of this district. The private-wire system connecting all Federal Reserve Banks, their branches, and the Federal Reserve Board, is of great value in this connection and in addition affords facilities for the telegraphic transfer of funds for member banks. All expense connected with telegraphic transfers of funds is absorbed by the Federal Reserve Bank. BANKING QUARTERS—NEW BUILDING. The building program of the Kansas City bank has progressed to the point of completion of plans for the construction of a building adequate for the estimated requirements of the bank for at least the next 10 years. While the plans are finished to the last detail, the bank has refrained from letting contracts on the suggestion of the Federal Reserve Board because of the continued increasing prices of building material and the present high cost of labor. At the very earliest time, with the sanction of the Board, contracts will be let. At the present time the bank is operating at considerable inconvenience, and with resulting loss of efficiency, occupying as it does space on eleven floors in five buildings widely separated in the city. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

466 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT A.—Movement of principal earning assets of the Federal Reserve Bank of Kansas City during the calendar year 1919. [In thousands of dollars.] 1 2 3 4 Dis- Date. p c c U u a o r p u n e e n i d t r t e e s b d e d y - -O c t o h u e n r t d e i d s- 1+2. Pe l- r s - c 3 e . nt i b n o B o u i p l g l e s h n t b c i o T l a u l o s n n t d d t a e i l s d - se U S cu n t r a i i t t t e e i s d es e a a T s r o s n t et i a s n l . g States. paper. market. bought. war obligations. Jan. 3. 26,472 37,361 63,833 41.5 18,966 82,799 13,302 96,101 10. 30,025 38,509 68,534 43.8 18,721 87,255 14,409 101,664 17. 27,582 39,357 66,939 41.2 18,122 85.061 14,299 99.360 24. 30,351 38,248 68,599 44.2 16,685 85,284 14,319 99,603 31. 24,907 38,629 63,536 39.2 15,079 78,615 14,284 92,899 Feb. 7. 27,313 40,795 68,108 40.1 14,197 82,305 14,350 96,655 14. 33,000 39,363 72,363 45.6 12,242 84,605 14,284 98, 889 20. 32,324 37,990 70,314 46.0 10,864 81,178 14,284 95,462 28. 32,421 35,851 68,272 47.5 14,741 83,013 14,384 97,397 Mar. 7. 37,445 36,018 73,463 51.0 14,136 87,599 14,904 102,503 14. 40,886 38,348 79,234 51.6 14,143 93,377 14,988 108,365 2 28 1 . . 5 5 0 0 , , 5 1 8 7 9 3 3 41 8 , , 0 6 5 8 0 8 8 9 9 1 , , 2 2 7 2 7 3 5 5 6 5 . . 7 0 1 8 3 , , 3 7 6 51 6 1 9 0 9 3 , , 5 0 8 2 9 8 1 1 4 4 , , 9 8 3 8 6 2 1 11 1 4 7 , , 4 9 7 6 1 4 A A M J J N D S O u p u e u e c o a l p r t n g c v y y t . e . . . . . 3 6 3 5 2 2 2 1 2 2 2 1 1 2 2 2 3 1 2 2 2 1 2 1 1 1 1 1 2 1 1 1 1 4 7 1 5 6 1 8 5 5 5 1 2 9 9 7 3 9 6 2 0 3 9 6 8 1 9 8 4 1 2 7 0 8 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 5 4 4 4 5 5 5 4 4 3 4 5 3 4 5 4 3 3 3 4 3 3 3 3 4 4 4 5 5 4 4 3 4 5 5 4 4 4 2 5 1 7 0 3 4 3 8 4 1 1 8 8 5 8 8 6 3 4 3 2 9 6 5 6 6 6 3 4 9 8 9 0 1 7 3 3 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 3 7 3 5 4 8 1 5 0 7 7 7 6 7 1 1 8 0 5 7 4 2 2 3 9 9 8 5 9 5 8 8 3 7 3 4 7 4 6 6 0 7 5 0 3 1 7 8 2 0 0 2 7 2 0 3 9 3 2 8 2 0 1 1 9 8 2 6 1 3 3 5 3 2 8 4 5 6 9 4 0 9 5 6 6 2 3 0 4 4 5 0 6 7 2 3 7 8 5 6 4 7 7 7 0 4 0 4 5 8 0 0 1 2 6 3 2 4 4 4 4 3 3 2 3 3 3 3 4 4 4 4 4 4 3 3 4 4 4 2 2 3 4 4 4 4 5 4 5 4 4 4 5 2 2 4 4 8 2 2 4 2 1 3 1 4 2 9 4 6 9 4 8 8 1 3 8 9 5 6 3 9 3 5 9 5 4 0 9 0 6 5 8 7 7 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 7 8 8 4 3 6 1 4 5 9 3 3 3 5 7 6 7 9 9 6 0 7 1 4 3 9 3 5 5 5 6 2 3 6 9 5 9 6 5 0 5 3 1 7 4 4 4 6 8 5 1 6 4 3 1 9 8 9 8 2 9 8 8 7 9 0 9 3 3 5 1 6 2 9 3 3 4 2 0 5 9 2 1 2 3 4 5 8 8 2 3 3 0 9 4 5 8 6 7 4 4 0 0 5 7 8 0 6 3 3 9 3 8 1 0 5 0 1 1 1 1 1 8 9 8 8 8 8 8 8 8 8 8 9 8 8 8 9 8 8 8 6 6 6 6 7 7 8 9 9 9 8 8 8 9 8 0 0 0 0 0 8 5 5 3 4 8 2 4 6 0 3 2 9 2 8 2 3 3 0 3 4 9 5 4 0 2 4 5 8 7 8 7 9 5 2 7 2 2 2 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 2 1 1 0 8 0 5 0 7 4 3 2 8 6 2 7 3 8 9 0 5 5 3 7 7 3 1 1 5 1 9 2 2 4 8 2 2 9 8 2 9 4 6 2 4 7 5 3 8 4 4 5 4 9 2 5 4 7 2 9 5 1 1 6 3 0 7 2 6 3 7 9 5 3 8 8 6 2 4 9 7 0 4 8 6 9 7 3 7 0 8 1 0 8 7 5 1 3 8 5 8 9 9 1 1 1 1 2 0 8 9 2 3 1 6 3 7 5 4 5 4 5 6 6 4 4 5 5 5 5 4 6 4 4 4 5 5 5 5 5 6 5 5 5 5 5 4 5 5 4 4 4 4 6 5 5 1 0 0 9 9 2 7 9 4 8 9 7 8 3 6 2 2 6 5 1 6 0 2 5 3 8 2 8 2 0 3 0 1 8 6 4 0 2 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 4 2 7 1 6 8 5 4 4 8 7 1 4 0 3 1 3 4 4 4 0 0 6 1 1 0 6 6 2 0 8 8 3 3 1 1 1 1 2 2 1 2 1 1 1 1 1 1 5 7 4 3 8 2 1 5 1 5 0 0 0 5 9 0 9 8 , , , , , , , , , , , , , , , , , , 1 4 5 2 8 3 3 0 5 4 7 1 4 4 4 4 0 6 6 3 0 3 9 2 5 2 9 2 5 6 7 7 7 7 4 2 2 6 9 6 1 2 7 7 5 5 2 2 1 2 4 0 3 4 8 9 9 0 9 4 2 8 8 2 2 2 7 1 3 2 1 9 1 0 3 9 1 1 3 7 0 0 1 1 2 3 6 2 4 6 5 6 6 1 1 7 5 3 4 1 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 8 8 8 8 9 8 8 9 8 8 6 7 8 8 8 8 6 9 9 9 9 9 0 0 0 8 0 0 0 0 0 0 0 0 4 1 2 1 3 6 3 9 2 4 5 0 3 9 2 4 4 9 5 3 4 0 4 5 7 4 7 9 8 7 7 5 2 3 2 5 0 3 2 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 3 1 4 2 4 3 2 1 9 5 9 4 8 7 6 7 0 6 9 9 7 2 7 7 7 5 8 5 5 4 7 0 3 6 7 2 2 6 8 9 2 1 1 1 4 5 2 2 1 8 3 1 3 6 0 3 0 3 6 8 4 4 9 8 9 1 2 7 2 1 4 1 1 9 0 6 5 2 7 0 0 6 7 2 2 0 2 7 8 9 6 2 7 0 0 1 9 8 0 9 7 2 6 9 7 0 7 3 4 2 2 3 0 4 8 5 5 1 1 1 1 1 1 1 2 2 2 2 1 1 1 2 2 2 2 2 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 5 5 5 4 5 5 . 4 0 2 6 6 2 4 1 0 0 6 5 5 1 4 3 5 3 1 5 5 1 0 0 2 0 1 6 5 1 1 1 1 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 3 3 8 1 3 3 8 7 3 7 1 7 7 7 7 3 6 6 9 7 6 3 1 0 6 2 7 6 2 4 5 6 6 6 2 2 2 2 7 4 1 0 6 3 9 8 2 6 5 5 1 6 5 8 9 9 7 5 7 8 3 2 2 9 1 4 7 8 1 9 8 0 4 7 0 1 6 3 6 1 1 3 7 9 0 1 6 3 0 6 3 0 4 6 1 1 6 9 8 6 2 9 9 0 8 6 8 2 4 2 0 0 2 9 2 3 4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 3 9 9 0 1 0 0 0 0 9 9 0 2 0 0 0 0 2 9 9 0 2 3 2 2 2 2 2 0 0 2 8 0 1 1 1 1 2 4 5 4 1 9 8 1 8 6 9 6 1 8 9 0 2 6 9 8 1 6 9 1 0 2 3 9 3 4 0 1 5 7 6 8 6 8 5 3 , , , , , , , , , , , , , , , , , , , , . , , , , , , , , , , , , , , , , , , 5 6 4 5 5 5 2 2 9 0 0 3 4 6 9 8 3 3 2 6 9 7 4 5 4 8 0 0 7 4 6 5 0 6 9 9 8 8 2 7 6 4 0 9 3 6 8 0 1 4 1 0 6 4 4 6 8 7 0 6 0 0 8 5 4 0 3 6 1 4 5 2 2 3 2 4 8 4 9 3 1 9 5 0 6 5 0 8 1 8 3 3 9 2 1 2 4 4 1 3 0 3 3 6 9 4 9 3 8 0 2 0 0 4 3 3 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10-—KANSAS CITY. 467 EXHIBIT B.—Movement of gold and cash reserves, Federal Reserve notes, and net deposit liabilities, and the reserve percentage of the Federal Reserve Bank of Kansas City during the calendar year 1919. [In thousands of dollars.] 1 2 3 4 5 6 Ratio of cash re- Date. Federal serves to res G e o rv ld es. res C e a r s v h es. n R a o e c t s e t e u s r a v i l n e dep N o e s t its. (3+4). a n n e R d t e d F s e e e p r d o v e e s r i a t l circulation. note liabilities combined. • Jan. 3 78,197 78,319 112,047 45,699 157,746 49.6 10. 77,319 77,522 110,035 51,785 161,820 47.9 17 82,037 82,314 107,882 56,214 164,096 50.2 24 87,651 87,919 107,467 62,343 169,810 51.8 31 90,387 90,717 105,5£ 3 60,246 165,839 54.7 Feb. 7 79,064 79,357 104,569 53,376 157,945 50.2 14 86,950 87,227 103,467 64,511 167, 978 51.9 20 91,766 92 032 102,908 66,339 169,247 54.4 28 91,891 92, 079 101, 609 69,451 171,060 53.8 Mar. 7 81,719 81,867 101,269 64,608 165,877 49.4 14 78,172 78,404 100,856 67,350 168,206 46.6 21 68,496 68,620 100,435 67,281 167,716 40.9 28 68, 737 68,849 99,615 64,731 164,346 41.9 April 4 73,077 73,191 99,520 60,509 160,029 45.7 11 73,970 74,094 98,740 64,692 163,432 45.3 18 72,528 72,608 98,063 64,401 162,464 44.7 25 75,976 76,113 98,420 63,118 161,538 47.1 May 2 70,266 70,393 97,668 64,741 162,409 43.3 9.. . 76,585 76,716 97,037 66,369 163,406 46.9 16 81 991 82,134 95,835 67,633 163,468 50.2 23 . 80,878 81,011 94,767 66,000 160, 767 50.4 29 81,827 82,019 95,585 72,103 167, 688 48.9 June 6 79,991 80,140 97,102 66,171 163,273 49.1 13 78,577 78,783 95,993 61,486 157,479 50.0 20 68, 582 68,770 94,623 61,132 155,755 44.2 27 71,069 71,306 93,677 67,639 161,316 44.2 July 3. ... 81,460 81, 780 94,044 68,604 162,648 50.3 11 78,054 78,350 93,081 67,059 160,140 48.9 18 76,576 76,805 94,086 62,303 156,, 389 49.1 25 80,113 80,417 92,148 67,378 159,526 50.4 Aug. 1. 76,896 77,067 91,498 62, 792 154,290 49.9 8 84,872 85,086 91,646 73,073 164,719 51.7 15 101,356 101, 540 92,356 77,399 169,755 59.8 22 98,859 98, 983 92,966 69,412 162,378 61.0 29 90,816 91,024 92,533 70,905 163,438 55.7 Sept. 5 83,964 84,114 93,724 74,017 167,741 50.1 12 61,685 61,905 93,486 62,220 155,706 39.8 19 69,428 69,748 94,683 66,270 160, 953 43.3 26 68,429 68,819 95,262 72,704 167, 966 41.0 Oct. 3 71,136 71,572 96,927 65,966 162,893 43.9 10 78,472 78,744 97,085 75,058 172,143 45.7 17 76,800 77', 180 96,490 79,206 175,696 43.9 24 71,155 71',415 96,275 73,412 169,687 42.1 31 73,801 74,192 95,571 81,894 177,465 41.8 Nov. 7 74,036 74,364 97,369 75,316 172, (85 43.1 14 85 478 85,772 98,959 83,999 182,958 46.9 21 . 93,531 93,781 93,114 89,908 189,022 49.6 28 95,192 95,503 101,749 95,850 197,599 48.3 Dec. 5 87,945 88, 222 102,342 83,240 185,782 47.5 12 70,775 71,063 101,884 72,947 174,831 40.6 19 71 144 71,492 102,807 69,061 171,868 41.6 26 77,688 78,031 105,100 76,104 181,204 43.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

468 ANNUAL REPORT OF THE FEDERAL. RESERVE BOABD. FEDERAL RESERVE BAM OF KANSAS CITY u MOVEMENT OF EARNING ASSETS ^ DURWG CALENDAR YEAR 1919. UNITED STATES SECURITIES. 2S O ACCEPTANCES BOUGHT. w 60 60 40 do PERCENTAGE GFWAR PAPER TO TOTAL DISCOUNTS. 125 TOTAL BILLS DISCOUNTED, »D; AND WAR PAPER'IV- ISO ISO I2S 100 PS SO TOTAL EARn ING ASSETS. JAN\ FEB\MCH\APRL\MAr\/UriE\jULy\AU6\SEPf\ OCT\NOV\DEC. \ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10—KANSAS CITY. 469 FEDERAL RESERVE BANK OF KANSAS CITY MET DEPOSIT LIABILITY. F.R. NOTE CIRCULATION. CASH RESERVES. AND RESERVE RATI0.I9I9. 70 70 60 60 /s < 50 SO 40 40 30 30 ZO 20 10 10 0 RESERVE RATIO, (PERCENTAGE OFC+L) DEPOSITED ERMTELMBlUTIES/L: AW TOTAL RESER/ESrC: JAN. FEB. MCH. APRL MAT <J(JNE\jULY AUG. SEPT OCT. NOV. DEC. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

470 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT 0.—Statement of condition of Federal Reserve Bank of Kansas City and branches at close of business Dec, 31, 1915, 1916, 1917, 1918, and 1919. Dec. 31, 1919. Dec. 31,1918. Dec. 31, 1917. Dec. 30, 1916. Dec. 31, 1915. ASSETS. 1. Cash Federal Reserve Bank (gold) $32,427,577.16 $23,683,147.78 $41,598,900.00 $27',, 400,285.00 $10,933,010.00 Federal Reserve agent (gold) 43,783,832.20 58,073,732.20 42,532,215.00 150,095.00 107.000.00 Silver coin, certificates, and legal tender 364,699. 101,461.00 58,000.00 145,280.00 119,570.00 Nickels and cents 40,143.08 514.43 3"~ 9.75 1.07 76,616,252.04 81,858,855.41 84,189,118.63 27,695,669.75 11,159,581.07 2. Other currency: Due from United States Treasurer, 5 per cent fund 957,460. 00 565,600.00 400,000.00 300,000.00 National bank notes and notes of other Federal Reserve Banks 1,136,100.00 1,839,565.00 216,300.00 107,645.00 348,318.00 Unassorted currency 2,739,301.00 4,832,861.00 2,405,165.00 616,300.00 407,645.00 348,318.00 3. Loans and discounts: Rediscounts and loans, member bank 93,380,730.66 57,453,637.39 30,051,150.34 514,888.46 428,872.2$ Rediscounts for other Federal Reserve Banks . 5,003,293.86 Acceptances bought in open market 18,691,464.20 14,203,695.36 1,337,928.75 3,945,180.94 3,580,463.35 112,072,194.86 71,657,332.75 36,392,372.95 4,460,069.40 4,009,335. 64 Investments: United States bonds and certificates of indebtedness ., 23,934,750.00 13,245,450. 10,633,090.00 9,455,850.00 2,151,650.00 Municipal warrants 163,813.65 288,015.84 23,934,750.00! 13,245,450.00 10,633,090.00 9,619,663. 65 2,439,665.84 5. Due from banks and bankers: Federal Reserve Banks— transfers bought 22,262,948.23 15,969,937.00 Transit items 77,800,762.51 38, 956,172. 95 11,431,493.33 17,584,498.46 1,849,365.44 Exchange for clearing house and other cash items 1,753,203.021 1,826,049.50 233,681.16 17,315.52 5,363.85 Overdrafts 42,856.28 119,854.93 17, 688. 57 11,783.74 79,596,821. 81j 63,165,025.61 27, 635, 111. 4917,619,502. 55 1,866,513.03 , Sundries: Furniture and fixtures recoverable 6,875.00 13,750.00 25,978.29 15,000.00 Bank premises 461,686. 76 400,000.00 War loan expense reim- Ac b c u r r u s e a d b le interest receiv- 407,176.18 449,452.85 86,449.96 able—United States se- Du cu e rit f e r s om employees— 164,385.32 62,257.78 60,504.90 53,97 8.18 8,862.18 Liberty loan subscriptions 5,772. 50 13,071.00 Deferred charges 16,749.50 46,643.91 52,960.85 Expense—organization... 52,984.44 Premium and discount- United States bonds 85,887.20 1,039,020.76 935,335.13 173,775.8 212,487.58 129,807.47 Total assets.. '8,091,900.47 233,267,163.90 159,639,768.93 60,015,037.93 19,953,221.05 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10—KANSAS CITY. 471 EXHIBIT 0.—Statement of condition of Federal Reserve Bank of Kansas City and branches at close of business Dec. 31,1915,1916, 1917,1918, and 1919—Continued. Dec. 31, 1919. Dec. 31,1918. Dec. 31, 1917. Dec. 30,1916. Dec. 31,1915. LIABILITIES. 1. Capital $4,015,550.00 $3,659,450.00 $3,396,750.00 $3,073,950.00 $3,037,800.00 2. Surplus 6,116,033.36 2,421,426.71 Profit and loss 293*407.'46 91," 506.'02 6,116,033.36 2,421,426.71 293,407.40 91,506.02 3. Deposit: Reserve balances 90,406,431.51 67,317,512.25 72,976,491.13 44,191,246.07 14,930,086.68 Deferred credits—members and nonmembers 40,017,982.37 17,434,374.47 4,751,489.87 Cashier's checks, etc 253,701.00 691,028.79 970,542.14 2,137.68 2,767.76 Foreign Government credits 3 470 114 70 134,148,229. 58 85,442,915.51 78,698,523.14 44,193,383.75 14,932,854.44 4. Government deposits 1,789,829.90 5,450,293.54 7,860,957.17 275,778.80 5. Due to other Federal Reserve Banks: Gold settlement suspense. 11,249,008.19 Other items 16,490,713.98 11,786,394.31 5,897,622.17 10,336,961.54 492,750.72 27,739,722.17 11,786,394.31 5,897,622.17 10,336,961.54 492,750.72 6. Federal Reserve bank notes: Outstanding 19, 980,000.00 12,172,000.00 8,000,000.00 6,000,000.00 Less: On hand 447,300.00 723,519.00 6,000,000.00 In circulation 19,532,700.00 11,448,481.00 8,000,000.00 None. 7. Federal Reserve notes: Outstanding 110,555,755.00 120,317,330.00 58,023,420.00 2,540,000.00 2,000,000.00 Less: On hand 6,466,500.00 7,872,040.00 2,650,710.00 517,120.00 564,850.00 In circulation 104,089,255.00 112,445,290.00 55,372,710.00 2,022,880.00 1,435,150.00 8. Discount and interest, unearned 549,091.77 012,912.83 119,799.05 20,577.82 54,665.89 9. Reserve for depreciation,— United States securities.. 72, 887. 40 10. Sundries 38 601 29 Total liabilities 298,091,900.47 233,267,163. 90 159,639,768. 9360,015,037. 93 19,953,221.05 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11—DALLAS. W. F. RAMSEY, Chairman and Federal Reserve Agent. INTRODUCTION. The past year has been a period of rapid developments and interesting changes in matters financial. The outstanding feature in banking has unquestionably been the phenomenal growth in resources and the abnormal expansion of credits with most of our banks. The end of the war and the necessary transition to a peace basis presented many economic problems which, for a time, seemed as difficult of solution as those which arose during the momentous days of the actual conflict. The heavy financial demands and sacrifices, not only upon individuals but upon banking and business institutions generally, did not terminate on November 11, 1918, but have continued in a large measure to be as essential and probably as important during the 12 months which have followed the signing of the armistice. The expansion of credits throughout this district and the consequent demands on us have severely taxed the resources of this institution. Believing that the creation of the Federal Reserve Banks was primarily to assist in financing the trade and commerce of the country generally, the executives of this institution have continued the policy, long since established, of rendering its member banks every facility consistent with law, the regulations of the Federal Reserve Board, and sound banking principles. FINANCIAL RESULTS OF OPERATION. Earnings, expenses, dividends, etc.—Gross earnings for the year amounted to $3,062,250.84, as compared with $2,089,526.08 in 1918, or an increase of 46.5 per cent. Net earnings amounted to $2,081,415.01, as compared with $1,554,101.64 in 1918, an increase of $527,313.37, or 33.9 per cent. Liberal depreciation has been allowed on various assets, and write-offs have been based on what were considered conservative valuations. The ratio of net earnings for 1919 to average paid-in capital was 63.6 per cent. The expansion of operations and the absorption by the bank of various items of expense, previously charged member banks, are reflected in the increased expense account for the year. The cost of Federal Reserve notes, operation of the private wire, and, as previously stated, the payment of transportation charges on currency, together with the increased cost of equipment, stationery, etc., are items of extraordinary character which have made for increased expenses. The advance in wages is also an item which has contributed to the increase. 473 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

474 ANNUAL. REPORT OF THE FEDERAL RESERVE BOARD. Expenses for 1919 amounted to $980,835.83, as compared with $535,424.44 in 1918, an increase of $445,311.39, or 82.6 per cent. On December 31, 1918, a surplus fund of $592,204 was created out of undistributed earnings of 1918. A like amount was set aside as Government franchise tax. Following the amendment to the Federal Reserve Act, passed March 3, 1919, which permitted the banks to create a surplus equal to 100 per cent of their subscribed capital, the surplus account was increased to $1,184,408 by crediting the same with the amount set up for franchise tax. On June 30 the net profits for the six months ending that date, of $844,459.84, were added to surplus and on December 31 $1,001,068.90 was added, making the present surplus $3,029,937.23. Dividend requirements have been promptly met and all dividends up to December 31, 1919, paid. On June 30, 1919, a dividend at the rate of 6 per cent per annum, covering the operating period from January 1 to June 30, 1919, amounting to $96,142.49, was distributed. On December 31, 1919, another dividend at the rate of 6 per cent per annum, covering the operating period July 1 to December 31, amounting to $100,192.88, was distributed. After paying the latter dividend and - providing for other expenses there remained in the profit and loss account $1,001,068.90, covering net profits for the last half of the year, which, as previously stated, was carried to surplus. Comparative balance sheets, December 31, 1917,1918,1919.—Exhibit C shows comparative balance sheets as of the above dates. The comparison proves very interesting and shows the phenomenal growth of the bank during the year. Total resources show an increase of $77,237,536 over 1918, earning assets an increase of $21,428,031 in the same period. DISCOUNT OPERATIONS. Rediscounts—Commercial paper.—The function of discounting is unquestionably the most important service performed by this bank. The increase over previous years is phenomenal. The response of member banks to the Government's financial requirements during the year created very heavy demands upon this institution. A total of 607 banks was accommodated in 1919 as against 548 in 1918. Of this number 71 were banks which had not previously used our facilities. The heavy demands upon the bank necessitated rediscounting with other Federal Reserve Banks in order to maintain required reserves as mentioned in another section of this report and it was only after the fall liquidation season started that this condition was reversed. The expansion of the discount operations is the best evidence of appreciation of the service by member banks. Rediscounts—Government obligations.—The use of our rediscount facilities for paper secured by Liberty and Victory bonds and Treasury certificates has constituted a large percentage of the total volume of paper handled, as disclosed by the chart showing the movement of the bank's earning assets. The service afforded by the discount of this class of paper has been very popular with member banks and enabled them to secure funds on very short notice. By the use of these advances banks were able to subscribe more freely to the various issues of Government war obligations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11—DALLAS. 475 ACCEPTANCES. Trade acceptances.—The use of this class of paper continues negligible in this district, and we regret to say that the progress and increased use of this form of settlement of purchases instead of the old system of bank accounts, with date of liquidation very uncertain, is rather slow. There is no question as to the merits of the trade acceptance. It provides a negotiable form of paper, acceptable by commercial banks for discount as necessity requires, and is a very attractive method of financing. The increased number of inquiries concerning this form of paper is indicative of growing interest on the subject, and yet the amount of trade acceptances offered us for rediscount is so small as to suggest little headway on the part of merchants and others. We believe the trade acceptance will become more popular in this district, but it will require much time and a program of education along systematic lines. Growth oj open market for acceptances.—Very little has been accomplished in the way of creating an open market for acceptances in this district. Open-market transactions of this bank during the year have consisted largely of the purchase, through the Federal Reserve Banks of the East, of acceptances of the larger member banks in this district. The demands upon this institution from its member banks have been so active that our entrance into the open market has been at infrequent intervals. Acceptances as a desirable form of credit are becoming more popular with the larger commercial banks, and the increasing demand upon them for the financing of cotton, grain, and other important commodities has caused a greater number of the institutions to engage in acceptance credits. Such paper will become more popular and its use further extended with the diminution of war paper and the consequent release of funds now used for that purpose. RESERVE POSITION. Exhibit B shows the reserve position of the bank during 1919. Fluctuations have been wide. Heavy demands for loans necessitated rediscounting paper in substantial amounts with other Federal Reserve Banks in order to maintain the required reserves. Our activities to increase gold holdings were very successful and met with a hearty response on the part of most member and many nonmember banks. This cooperation added to our reserve position, and requirements during the early part of the year were fairly well maintained. As the borrowing season advanced, however, and the normal expansion of credits was augmented by demands for advances against Government obligations, our resources became severely taxed, and reserves gradually declined. It was thereupon necessary to rediscount with other reserve banks. These rediscounts, aggregating at times as much as $35,000,000, continued throughout a large part of the year. As cotton and other crops were marketed and fall liquidations realized, the bank's position was greatly strengthened, and during the closing weeks of the year our reserves were very strong; in fact the highest of the 12 reserve banks. Happily the tide has turned, and instead of this bank seeking the assistance of other Federal 178983—20 31 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

476 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. Reserve Banks to build up depleted reserves, rediscounts in large amounts have been taken from other districts. MOVEMENT OF MEMBERSHIP, National hanks.—On January 1, 1919, the total number of national banks in this district was 630, with capital and surplus of $96,879,000. During the year 25 national banks were granted charters; 12 have withdrawn from the system through liquidation or merger with other banks, making a net increase of 13, or a total on December 31, 1919, of 643. m State banks,—On January 1, 1919, our total State bank membership was 97, with combined capital and surplus of $8,548,645. During the year 22 State banks were admitted; 3 consolidated with other institutions; 1 withdrew from the system, making total withdrawals of 4; a net increase during the year of 18, or a total on December 31, 1919, of 115. Changes in capital of the Federal Reserve Bank.—On December 31, 1918, the subscribed capital stock of this bank was $6,308,600, of which $3,154,300 had been paid in. On December 31, the subscribed capital of the bank was $6,841,400 and the amount paid in $3,420,700. RELATIONS WITH NATIONAL-BANK MEMBERS. Discount operations.—A total of 4,504 offerings for rediscount were received from our national banks during the year 1919, containing 41,211 items aggregating $99,155,311.08. There continues to be a steady increase in the volume of paper handled, many members having availed themselves of our rediscount facilities during the past year who had not previously done so. A very marked improvement has been shown in the compliance with statutory regulations on the part of all member banks, resulting in our ability to accept approximately 93 per cent of the paper offered to us as being eligible for rediscount under the terms of the Federal Reserve Act and the regulations of the Federal Reserve Board. Member bank promissory notes, variously collateraled, were discounted for our national-bank members in the number of 11,541, aggregating $1,034,120,675.76. Total discount operations for national banks during the year, including rediscount of customers' paper and discount of collateral notes, present an aggregate of $1,123,342,715.88. Trustee powers.—In 1919, 13 national banks were granted permission to act in fiduciary capacities. On December 31, 1919, a total of 54 banks had received such authority. After the amendment to the Federal Reserve Act of September 26,1918, the number of applications for permission to act in fiduciary capacities has increased and renewed interest has been manifested in securing the privileges. The development of the oil fields, and the consequent growth of banking business, has made the performance of trustee powers especially attractive to banks in that vicinity. During the year several banks applied for permission to act in fiduciary capacities, butf were not approved on account of criticisms as the result of examination. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11—DALLAS. 477 Banks authorized to accept up to 100 per cent.—During the year 11 national banks received the approval of the Federal Reserve Board to accept up to 100 per cent of their capital and surplus, making a total of 26 so authorized on December 31. The necessity for financing cotton and other important crops in this district makes the granting of this authority of especial advantage to the larger banks in this district, and they are better able to meet the increased credit needs of their customers. RELATIONS WITH STATE-BANK MEMBERS. Discount operations.—While it is perhaps true that the unfavorable conditions existing during the greater part of 1918 caused many State banks to join the system for the sole purpose of obtaining the benefit of the rediscount facilities, the same conditions have not prevailed during the year just closed. However, our State-bank members have continued to use this facility freely to meet their legitimate and warranted needs. Seven hundred and eighty-seven offerings were received from them, containing 14,400 items, aggregating $13,167,137.90. Member bank promissory notes, variously collateraled, were discounted for our member State banks in the number of 2,009, amounting to $78,505,220.02. Total discount operations for our State member banks, including rediscount of customers' paper and discount of member bank promissory notes, present an aggregate of $101,603,428.90. Examinations.-—During the past year this bank has continued its practice of making an independent examination of State banks applying for membership. Twenty-eight examinations of this character have been made during 1919. It has been the custom, where practicable, to have our examiner participate in at least one examination of State-bank members made by the State banking department. This plan has not been altogether successful through inability to obtain and conform to the routing of the State-bank examiners. Quite frequently, after advice had been furnished our examination department, conditions made it necessary for the Statebank examiner to change his route, and we, therefore, missed the joint visitation. Fifty examinations of this character have been made this year. It is hoped that in 1920 better results will be obtained, and our examiners enabled to make more headway than has heretofore been the case. The banking commissioners of the States in this district have, without exception, cooperated with our examination department and two copies of reports of examinations made by their examiners are furnished us for the purpose of analysis and record. Our examination department has conducted two independent examinations of State-bank members. Reserves.—One distinct advantage to State banks becoming members of the Federal Reserve System is the acceptance by the banking departments of the States in this district of the required balances with the Federal Reserve Bank as meeting their full reserve requirements. This, of course, enables the banks to reduce their reserves, thus increasing their working capital and earnings to the extent of the difference in interest on balances, and current lending rate, maintaining in vault only such cash as might be necessary to meet their counter requirements. The use of our rediscount facilities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

478 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. assures them of funds on short notice and to meet unusual demands. This has especially appealed to banks in the remote sections of the west and northwest, where distances between towns are great and the risk from burglaries and holdups is hazardous. FISCAL AGENCY OPERATIONS. Publicity and sales organization.—The war loan publicity and sales organization for the first half of the calendar year of 1919 consisted of a central Liberty loan organization and war savings organization, under the general supervision of the governor and Federal Reserve agent and directly controlled by a Federal district director, and a separate publicity and sales organization for Treasury certificates of indebtedness, also under the general supervision of the governor and Federal Reserve agent and directly controlled by a director of Treasury certificates sales. At the close of the Victory Liberty loan campaign the central Liberty loan organization was disbanded, but the same Federal district director remained in control of the war-savings organization, and the Treasury certificates of indebtedness sales organization was merged into the permanent fiscal agency organization of the Federal Reserve Bank, and wherever possible the county chairman of the Liberty loan committees has been retained, in a volunteer capacity, of course, as county chairman for the certificates sales organization. Permanent fiscal agency organization.—It became evident in 1918 that the continuance of the Federal Reserve Banks as fiscal agents of the United States would make imperative the creation and maintenance of a fixed and permanent fiscal agency department, and the Federal Reserve Bank of Dallas entered the year 1919 with a well-established permanent fiscal agency organization, which had been gradually developed from the more or less temporary organization hastily formed during the first and second Liberty loan campaigns. The several activities of the Federal Reserve Bank of Dallas, as fiscal agent of the United States, are managed by separate divisions which handle the different undertakings independently, but are correlated into one general operation under the designation of the "war loan department" and in direct control of an assistant cashier. Certificates of indebtedness.—The Treasury certificates of indebtedness division of the fiscal agency organization of the Federal Reserve Bank of Dallas, in addition to handling the details incident to receiving subscriptions and payments and the issuance of the certificates, also conducts the sales campaign for Treasury certificates of indebtedness along definitely conceived lines, and, by following a practice of acting as a clearing house for the purchase and resale of all outstanding issues of certificates, has succeeded in giving all of the recent issues a wide distribution among actual investors. It is significant that the sales for new offerings of Treasury certificates of indebtedness increase in relative proportions to the amount of certificates of previous issues which have been purchased from original subscribers and resold to banks or individuals, who can hold them to maturity without using the discount facilities of the Federal Reserve Bank. Of the total amount of $262,019,500 Treasury certificates subscribed for in the Eleventh Federal Reserve District during 1919, more than $70,000,000 were repurchased from the original subscribers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11—DALLAS. 479 and resold, the Federal Reserve Bank of Dallas acting merely as a clearing house between the seller and the buyer. This does not take into account the sales of Treasury certificates of indebtedness made by banks out of their original subscriptions to their own customers, as the Federal Reserve Bank has no record of these transactions, but inquiry among a number of the large banking institutions indicates that the amount of such transactions will run into large figures. 'War-savings securities.—The sales of war-savings securities through the Federal Reserve Bank of Dallas during the calendar year 1919 were comparatively light, and the gross amount of sales will not compare favorably with the record of the Eleventh Federal Reserve District for 1918. NOTE ISSUES. Federal Reserve notes.—The elasticity of the Federal Reserve note as circulating currency has been clearly demonstrated in this district during the past 12 months. Exhibit B shows the amount of notes in circulation as at close of business on each Friday during 1919. Due to the high cost of commodities, especially the advanced prices of farm products and the increased wage scale, it has been necessary to issue Federal Reserve notes in large amounts beginning early in the year and continuing into the winter months. This was partly due to the late marketing of cotton, much of the crop of 1918 not moving until the early months of 1919. The highest point reached was on December 31, 1919, when the total outstanding was $78,644,065, an increase of $15,109,455 over the maximum in 1918. Notes of the larger denominations have been in heavy demand throughout the year. We attribute this to the abnormal increase of currency in circulation, on account of high prices, and the necessity of providing banks in oil centers with funds in large amounts for financing customers engaged in that industry. The shipment of currency to the State tax department at Austin, against withdrawals from State depositaries, has also contributed to the large issue of notes. Federal Reserve bank notes.—During 1919, this bank increased its Federal Reserve bank-note circulation $4,921,450, making the total Federal Reserve bank-note circulation of this bank $10,461,350. Practically all of the increased circulation consisted of notes in denominations of $1 and $2, which amount, together with approximately $1,200,000 in new currency, received on account of notes unfit for further circulation redeemed and destroyed by the Treasury Department, was shipped to member banks in this district. In May, 1918, all banks in this district were circularized and requested to ship their supply of silver certificates to this bank. The banks responded most admirably to this call, resulting in the withdrawal from circulation of practically all silver certificates in this district at that time. Therefore, a large percentage of circulating notes, in denominations of $1 and $2, now consist of the Federal Reserve bank-note issue. The Federal Reserve Banks are not now permitted to increase their Federal Reserve bank-note circulation in notes of $1 and $2, by reason of the fact that the amount now issued is equal to the amount of standard silver dollars broken up and melted and sold as bullion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

480 ANNUAL REPORT OF THE FEDERAL RESEBVE BOARD. POSITION OF COMMERCIAL BANKS AS A RESULT OF WAR FINANCING. Increase of their obligations.—The opening of 1919 found commercial banks in this district with a considerable investment in Government war obligations, either for their own account or in the form of advances to customers against notes secured by bonds and certificates. With a good percentage of their assets so invested, the banks were compelled to increase their obligations to care for the demands of their customers in ordinary channels of trade. Costs of conducting all lines of business and industrial and agricultural acitivity gradually mounted to such heights that the banks as a rule were forced to revise and increase credit lines and seek accommodations in unusual amounts. The successful flotation of the Victory loan made for further demands on commercial banks. They responded generously, as in the previous issues, but were forced to seek the facilities of this bank to do their full part. Effect on commercial paper of district.—As in 1918, the purchase of commercial paper by the banks of this district in the past year has not been heavy until within recent months, which was due to the abnormal demands from regular customers and the necessity of using surplus funds in the purchase of Government obligations. The yield from the latter, while not as attractive as that from commercial paper, is a more convenient investment and in case of necessity is immediately available for rediscount. As the fall season approached, the market for commercial paper became better and there was considerable demand for the same. In normal periods, banks in this section buy outside paper in large amounts, finding it a convenient form of investment for surplus funds. For the past two or three years, however, commercial paper has been subordinated to Government obligations and purchases of the former have been lighter than in ordinary periods. OPERATIONS OF BRANCHES. El Paso.—The activities of the El Paso branch for the year ending December 31, 1919, show that its facilities are being used more extensively from month to month, and, consequently, that its field of usefulness and service is much larger than at the beginning of the year. The volume of transactions handled in all departments has steadily increased, and its facilities are thoroughly appreciated by the banks which it serves. Houston.—The opening of the Houston branch on August 4 came as the fulfillment of a need that had long been experienced by the banks of south Texas. Because of the loss of time by transportation, both difficulty and inconvenience had attended their borrowing and clearing operations, also currency shipments. MISCELLANEOUS. Internal organization.—During the year there have been 11 meetings of our board of directors. Each session was well attended and the affairs of the bank have received the closest attention of the board. The executive committee meets daily to consider offerings for rediscount and other important matters. In accordance with the by- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11—DALLAS. 481 laws the third member of the committee, in addition to the governor and chairman of the board has been chosen from the board of ; directors to serve for 90-day periods. It has not been possible for the member of the committee selected from the board regularly to attend the meetings. Following the action of the board of directors, at its December meeting, the by-laws were amended to provide for an executive committee of five, consisting of the governor, chairman, and three members selected by the board. The committee will meet regularly on the second and fourth Thursdays of the month. The officers of the bank hold informal meetings daily from 9.30 to 10 a. m., to discuss matters of policy, interchange views on operation, and in general consider important matters which develop. CLEARINGS AND COLLECTIONS. Clearings.—During 1919 the bank continued the operations of its collection system along the lines of a clearing house, receiving from all of its member banks checks on all member banks in the entire Federal Reserve System and those nonmembers appearing upon the par list. Immediate credit was thus given to the member bank in the district clearing house for all such items received from it, but this credit was OTL\J immediately available against items sent to such member banks on the samo day, the resultant debit or credit balance being entered into the reserve account of that member bank only when sufficient time had elapsed for advice of payment. Effect upon reserves.—In allowing member banks sufficient time to make a deposit to their reserve account before charges covering letters to them are made, their reserve accounts have been materially affected. The banks of this district have become thoroughly familiar with this system. Delays in mails cause quite a number of reserve deficiencies, but where it is found that the deficiency is due to mail delay and not to lack of diligence on the part of the member bank, an adjustment in their reserve account offsetting such delay is made. During the year a number of penalties have been assessed for reserve deficiencies, and there have been occasional overdrafts, yet the aggregate reserve has been well maintained. Immediate credit entry.—It would be very inconvenient for the majority of the member banks to make settlement of their district clearing house debit balances were it not for the facility afforded for immediate credit on checks and drafts other than those drawn on banks in the Federal Reserve city. In addition to drafts on Dallas, member banks may remit for immediate credit account drafts on banks of other Federal Reserve cities and points on which other Federal Reserve Banks allow us immediate credit. The reserve city clearing house also provides a convenient facility for country banks and has proven of much assistance to them in making quick settlement of their district clearing house balances. It was evident that before the adoption of the reserve city clearing house a member bank which carried its account with a Dallas bank would be able to restore its reserve more quickly by giving the Federal Reserve Bank a draft on a Dallas correspondent, which could be collected the same day that it was received, than by giving a draft on its Fort Worth, San Antonio, Waco, or Shreveport correspondent, which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

482 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. could not be collected the same day as received, and for which, therefore, a deferred credit had to be given. With the establishment of the reserve city clearing house, when the member bank obtains permission from its reserve city correspondent which participates in the clearings to stamp across the face of its draft " Charge (name of bank) in reserve city clearing house," its draft is then subject to immeediate credit upon receipt by the Federal Reserve Bank of Dallas or its Houston branch before clearing hours. These drafts when properly stamped and drawn on a member of the reserve city clearing house are cleared daily against the same class of items that are received from that member of the reserve city clearing house, and the resultant balance entered against its reserve account, with advice by wire of the amount of the balance. In this manner immediate collection of the check is effected, and the member banks receive the advantage of immediate credit to their reserve account. All members of the reserve city clearing house are so situated that mail dispatched for Dallas will be received by the Federal Reserve Bank in time for clearings at 11.30 a. m. This permits advice of balances by 12 m., and gives the members three hours to prepare their reserves to meet the charges. The operations of the reserve city clearing house, in addition to saving its members one day's time in the collection of checks received drawn on other members, obviates the necessity of handling a great number of miscellaneous items by this bank. Collections.—On January 1, 1918, under the authority of the Federal Reserve Board, the Federal Reserve Bank of Dallas established a collection department for handling all forms of collections, and during that year handled for member banks and other Federal Reserve Banks a total of 4,962 collection items, or a monthly average of 413. During 1919 we show an increase to 8,200, or a monthly average of 687. All items handled through this department are sent to banks in the city where payable, and the collecting banks are requested to remit in Dallas exchange, except in cases where the items are payable in other Federal Reserve districts, as then the collections are forwarded to the Federal Reserve Bank in that particular district for presentation and credit to our account under advice. Banks of this district have not availed themselves of this facility to the fullest extent. The majority of the present collections are received from other Federal Reserve Banks or their branches, but the growth above indicated would seem to presage a more extensive use oi this service. BANKING QUARTERS—NEW BUILDING. The building now occupied as banking quarters is inadequate for the proper handling of the bank's business. Every department of the institution has outgrown its space, and working conditions throughout the year have not been conducive to efficiency. It has been necessary to procure additional room for various departments, principally the cash, trust, and purchasing divisions, which was accomplished by leasing the building adjoining the bank proper. This has afforded some relief. Early in the year the executive committee, with the approval of the Federal Reserve Board, began to put in more definite shape the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11—DALLAS. 483 plans for a new building on the lot purchased by the bank in 1918. After drawings and preliminary specifications for the structure had been submitted by the firm of architects, and equipment engineers employed in 1918, much remained to be done in the way of revision of specifications to meet the exigencies of the situation. The plans were approved by the Federal Reserve Board early in 1919 and in May proposals for the work were invited through advertisement. Bids were received, opened, and tabulated on June 7 and the contract was awarded. Work was immediately begun, and, while retarded by various influences, such as strikes and other hindrances affecting construction throughout the year, it is gratifying to report that coiisiderable progress has been made, the foundations have been completed and structural steel is being placed. CAMPAIGN FOR STATE BANK MEMBERS. The results of our efforts to increase the number of State bank members in 1919 have proven fairly satisfactory, but were less successful than in 1918. Twenty-two State banks were added in the year, as compared with 87 in 1918. We think the decreased number is partly due to the end of the war and the feeling among State bankers that the reasons which prompted membership, from patriotism and as a response to the Government's especial request, no longer exist. In 1918 many State banks joined the system solely from those motives. The number admitted in 1919 is really not a true index of the interest which has been evidenced by eligible banks. GENERAL BUSINESS AND BANKING CONDITIONS. Measured in dollars, it is certain that when the financial statements for 1919 are made they will show a business of unprecedented volume. The past year has been an extraordinary one in many respects, and many new records have been established. For a few months following the signing of the armistice, business and industry proceeded with considerable caution, and, for a time, there seemed a disposition toward conservatism and hesitancy in entering upon new commitments. As usual in this district, the first few weeks which followed the holidays were dull, and the lethargy caused by the influenza epidemic was quite apparent. Spring business opened up well and agricultural prospects began to improve after a very excellent winter season. The wheat and oat crops were probably the heaviest in the history of the district, but much of the grain was lost through inability to harvest. Heavy rains during the harvesting season prevented thrashing, and several millions of bushels of grain were left in the fields to rot. The rains continued throughout the fall months and seriously interfered with planting grain. In many counties very little farm work has been undertaken on account of excessive moisture. The corn crop in 1919 was the heaviest in recent years and the yield in Texas was estimated at 240,000,000 bushels. Other feed crops were also satisfactory and the yields much larger than in 1918. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

484 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. A comparison of the yields of principal food crops and other commodities in Texas is shown below: Comparison of annual yields of Texas's principal products for 1918 and 1919. [Fissures for 1919 are based on reliable estimates.] 1918 1919 i P n e c r r e c a e s n e t . Cotton bales 2,610,327 2,700,000 14 Wheat.. . bushels 15,000,000 40,000,000 166 Oats ... do .. 18,000,000 75,000,000 316 Corn do 75,000,000 240,000,000 220 Petroleum. barrels 40,000,000 90,600,000 126 The year has developed a ucome back" for the live-stock industry, and the effects of the drought of 1917 and 1918 have been largely overcome. Seasonal rainfall provided a plentiful water supply and greatly improved the ranges. Cattle have had ample pasturage in practically every section throughout the year. There was a complaint during the late summer months of the inability of stockmen to secure necessary financial assistance to carry their herds. This problem was greatly remedied as the year closed. The receipts of cattle at Fort Worth, the principal market in this district, as will be noted from the table following, were less than in 1918 when, on account of poor ranges, great numbers were marketed in an unfinished condition. The present outlook in the live-stock industry is very encouraging. Increase 1918 1919 or decrease. Per cent. Cattle 1, 384,594 1,030,932 -26 Hogs. 762,486 588,101 -24 Sheep 334,596 453,249 +36 Decrease in number of cattle and hogs marketed in 1919 is attributed principally to depletions resulting from continued droughts and slaughter of breeding stock in 1918. Building operations, long held in check by the war, have been very active, especially during the closing months of the year. Several factors have contributed to deter activities, principally the high wage scale, scarcity of labor, unsatisfactory character of that available, and inability to secure suitable building materials. During the war building was at a standstill, which accentuated the need for business locations and housing facilities after the armistice wTas signed, and without exception every quarter of the district is badly in need of business houses and residences. In those towns adjacent to the oil fields the problem of housing has been especially acute throughout the year. The table following shows the permits issued at the principal cities in 1918 and 1919: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTKICT £T0. 11—DALLAS. 485 Building permits. 1918 1919 Increase Valuations at— or de- Number. Amount. Number. Amount. crease. Per cent. Austin. 102 $252, 615 145 $250,317 - 0.9 Beaumont 865 1,304, 421 968 1,057,074 - 18.9 Dallas 555 1,667,729 1,599 13,921,565 +734.7 El Paso . 1 030 646 149 1,242 2 245 587 +247.5 Fort Worth 630 2,067,887 2,000 19,053,157 +821.3 Gal vest on.... 3,957 175. 614 5, 720 666,272 +279.3 Houston 2,227 2, 222,151 4,066 6,874,380 +209.3 San Antonio .. 2 612 3 756 344 2 710 3 973 330 + 5.7 Shreveport 593 552,257 1,637 3,538,386 +540.7 Total 12,5?1 12,645,179 20,087 51,580,068 +307.1 The oil industry, which became very active early in 1919 by the production of large wells in the Hanger and Burkburnett fields, has contributed to the prosperity of the district throughout the year. Much outside capital has been attracted to central and northwestern Texas, and business of all kinds has been in unprecedented volume. New towns have been established almost overnight. The Louisiana oil field has also come into prominence during recent months, and authorities believe that that territory will develop into one of the largest fields of the country. It has attracted oil men from all over the country and shares with the Texas field in production. Production of crude petroleum in Texas in 1919 is estimated at 90,600,000 barrels, an increase of 50,600,000 over 1918, or 126 per cent. The high cost of goods and heavy exchanges have made clearings run to new totals. Interest rates have not greatly fluctuated in the past 12 months. Commercial banks have not made any material advances. As a matter of fact, rates are not subject to such wide or sudden fluctuations as in the money centers of the North and East. As in other sections, but probably less pronounced or aggravated, this district has not been free of employment problems, and it has been rather serious throughout the year. The wage scale has been increased from 25 to 75 per cent on account of the increased cost of living. Even with this advance it has been impossible to maintain efficient staffs. Competition has been very keen, and the acute shortage of skilled and unskilled workmen has made for a heavy turnover. The situation has been a troublesome one during the past 12 months. As the Army was demobilized a surplus of men was expected, but this source of supply was soon absorbed and scarcity seriously felt. We enter the new year with no immediate improvement in prospect. In wholesale and retail lines activities have been restricted only by inability to secure goods. As prices advanced early in the year there was a feeling of uncertainty among the trade. The buying public was fearful of the future and hopeful for an early reduction in living costs. As the year advanced prices continued upward and merchandise became scarcer, but in face of a rising market buyers rushed to the markets and bought heavily. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

486 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. The record of commercial failures in the district during the year is an excellent one and reflects the general healthy business conditions which have obtained. Post-office receipts at the principal cities during the year have continued in heavy volume, and while the total shows only a slight increase over 1918, this is attributable to the reduction in postal rates and the abandonment of military camps. EXHIBIT A.—Movement of principal earning assets oft&e Federal Reserve Bank of Dallas during the calendar year 1919. [In thousands of dollars.] 13 2 3 4 5 6 7 8 Discounted Date. c p w U u S a a r p t n e r a e i d t t o r e e b b s d s l e y i- - c p o O d a u t p i n h s e t e - e r r d . 1+2 Pe l- r * c -3 e . nt m i b n o B a u o r il p k g l e h s e n t t . b c b o i T o l a u l u o s n n g t d d t a h e i l t s d . - U s S e t n t i c a e i u t t s e e r . i s d - e a a T s r s o n e t i a n ts l g . gations. Jan. 3 16,644 32,341 48,985 34.0 2,558 51,543 8,366 59,909 10 16,603 32,540 49,143 33.8 2,408 51,551 8,366 59,917 17. . 20,039 30,960 50,999 39.3 2,168 53,167 8,366 61,533* 24 16,623 32,079 48, 702 34.1 2,625 51,327 8,373 59,700 31. 17,549 32,799 50,348 34.9 2,845 53,193 8,371 61,564 Feb. .7 20,594 82,024 52,618 39.1 2,963 55,581 8,370 63,951 14 21,393 32,099 53,492 40.0 2,595 56,087 8,369 64,456 20 17,653 33,265 50,918 34.7 1,800 52,718 7,867 60,585 28 24,382 32,206 56,588 43.1 1,758 58,346 7,867 66,213 Mar. 7 23,058 30,738 53, 796 42.9 1,958 55,754 8,367 64,121 14 20,921 29,798 50, 719 41.2 1,558 52,277 8,367 60,644 21 21,158 29,386 50,544 41.9 1,803 52,347 8,367 60,714 28 . . 21,918 29,393 51,311 43.6 1,783 53,094 8,367 61,461; Apr. 4 14,594 29,747 44,341 32.9 2,173 46,514 8,367 54,881. V 11 23,240 28,848 52,088 44.6 1,923 54,011^ 8,367 62,378 18 21,910 29,283 51,193 42.8 1,888 53,081 8,367 61,448 25 26,350 28,591 54,941 48.0 1,813 56, 754 8,867 65,621 May 2 20,923 28,198 49,121 42.6 1,688 50,809 8,866 59,675 9 ' 20,478 28,128 48,606 42.1 1,498 50,104 8,866 58,970 16 26,135 26,951 53,086 49.2 1,073 54,159 8,866 63,025 23 19,354 26,986 46,340 41.8 1,063 47,403 8,866 56,269 29 25,887 26,927 52,814 49.0 838 53,652 8,866 62,518 June 6 . 27,074 25,353 52,427 51.6 613 53,040 8,866 61,906 13 25,547 24,837 50,384 50.7 649 51,033 9,366 60,399 20 23,277 24,375 47,652 48.8 649 48,301 9,377 57,678 27 . 28.494 24,360 52,854 53.9 1,020 53,874 9,654 63,528 July 3 31,208 22.947 54,155 57.6 895 55,050 9,866 64,916 11 ... . 34,774 22,482 57,256 60.7 701 57,957 9,866 67,82a 18 30,831 22,038 52,869 58.3 594 53,463 9,866 63,329 25 37,595 20,978 58,573 64.2 382 58,955 9,866 68,821 Aug. 1 32,110 21,007 53,117 60.4 332 53,449 10,266 63,715 8 8 34,088 20,445 54,533 62.5 332 54,865 10,266 65,131 15 32,362 20,150 52,512 61.6 671 53,183 10,266 63,449 22 38, 712 20,348 59,060 65.5 811 59,871 10,266 70,137 29 38, 727 19,296 58,023 66.7 796 58,819 10,666 69,485 Sept. 5 35,687 19,556 55,243 64.6 742 55,985 10,666 66,651 12 . 34,312 21,496 55,808 61.5 494 56,302 11,166 67,468 19.. . . 32,303 22,851 55,154 58.6 379 55,533 11,166 66,699 26 32,030 23,672 55, 702 57.5 507 56,209 11,166 67,375 Oct. 3 . 34,924 24,118 59,042 59.2 766 59,808 11,666 71,474 10.. . 36,480 23.711 60,191 60.6 659 60,850 11,666 72,515 17 38,129 23,677 61,806 61.7 1,100 62,906 12,166 75,072 24 39,263 23,465 62,728 62.6 1,640 64,368 12,166 76,534 31 . 40,184 22,441 62,625 64.2 1,475 64,100 12,166 76,266 Nov. 7 36,389 20,482 56,871 64.0 1,505 58,376 12,166 70,542 14 . . 29,227 17,830 47,057 62.1 2,870 49,927 12,991 62,918 21 26,054 15,923 41,977 62.1 7,830 49,807 15,276 65,083 28 . 29 681 15,507 45,188 65.7 12,803 57,991 15,191 73,182 Dec. 5.. . . 27,630 13,920 41,550 66.5 12,663 54,213 12,611 66,824 12 . 38 483 12,653 51,136 75.3 9,279 60,415 13,186 73,601 19.. 41,107 11,308 52,415 78.4 8,277 60,692 13,111 73,803 26 42,634 11,427 54,061 78.8 7,734 61,795 13,056 74,851 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11—DALLAS. 487 EXHIBIT B.—Movement of gold and cash reserves, Federal Reserve notes, and net deposit liabilities, and the reserve percentage of the Federal Reserve Bank of Dallas during the calendar year 1919. [In thousands of dollars.] Ratio of cash Federal reserves to Date. res G e o rv ld es. res C e a r s v h es. a n R ct o e u t s e a e s l r v c in i e r- dep N o e s t its. (3+4) ne F t e a d d n e e d p r o a s l it culation. Reserve note liabilities combined. Jan. 3.. 33,079 34,456 59,758 26,017 85,775 40.2 10.. 38,243 39,654 59,150 31,080 90,230 43.9 17.. 40,984 42,545 57,528 37,157 94,685 44.9 24.. 37,144 38,889 55,981 33,054 89,035 43.7 31.. 34,201 35,968 55,376 32,409 87,785 41.0 Feb. 7.. 34,447 36,264 54,832 35,539 90,371 40.1 14.. 36,891 38,713 53,239 40,020 93,259 41.5 20.. 39,029 40,916 52,309 39,179 91,488 44.7 28.. 35,326 37,306 51,167 42,224 93,391 39.9 Mar. 7.. 41,647 43,595 51,200 46,270 97,470 44.7 14.. 38,950 41,006 50,551 40,803 91,354 44.9 21.. 34,643 36,770 50,279 36,737 87,016 42.3 Ap, * 28 . . . . 3 4 3 8 1 4 , , , 6 1 2 4 8 8 1 4 7 4 3 4 0 6 3 , , , 8 5 4 3 0 2 6 6 1 5 4 49 9 0 , , , 0 5 1 1 6 0 1 5 7 4 3 3 1 8 9 , , , 6 1 0 0 5 6 6 9 3 9 8 8 1 7 8 , , , 7 7 0 1 2 7 3 4 4 4 4 4 4 9 1 . . . 5 5 4 J M u a n y e 2 2 2 1 2 1 1 6 2 6 3 9 9 8 0 5 3 . . . . . . . . . . . . . . . . . . . . 3 3 3 3 3 3 3 3 3 3 3 2 3 3 2 1 2 2 2 0 3 1 , , , , , , , , , , , 5 0 5 8 1 4 8 5 0 6 6 0 1 5 8 2 7 3 0 7 8 3 8 6 5 5 8 3 7 2 2 4 2 3 3 3 3 3 3 3 3 3 3 3 2 4 4 6 3 4 5 4 4 5 3 , , , , , , , , , , , 1 7 8 8 1 1 3 9 4 5 6 0 6 4 3 9 9 4 6 5 8 7 1 1 3 1 1 1 7 7 5 0 0 4 4 4 4 4 4 4 4 4 4 4 8 7 6 6 5 7 6 6 7 6 6 , , , , , , , , , , , 5 8 0 7 5 6 9 2 6 9 1 2 4 6 3 1 0 2 3 6 8 2 3 1 6 5 7 5 8 7 8 8 2 3 3 3 3 4 3 3 3 3 3 3 8 3 8 8 3 9 1 7 5 9 2 , , , , , , , , , , , 2 9 9 4 2 7 7 3 4 8 5 7 0 6 2 0 3 6 7 3 7 7 1 1 6 9 5 9 0 0 4 1 2 8 8 8 8 8 8 7 8 8 7 5 8 6 1 3 2 9 6 4 9 , , , , , , , , , , 6 3 9 7 0 8 9 2 2 8 0 6 5 2 9 4 6 3 6 9 1 9 7 2 4 4 7 4 0 2 4 4 4 4 3 3 4 4 4 4 4 6 0 1 3 1 8 0 9 0 2 1 . . . . . . . . . . . 6 5 8 7 3 6 8 4 6 5 0 27.. 32,334 34,271 47,908 39,052 39.4 I 3 3 7 2 , , 5 9 1 9 1 0 3 34 9 , , 8 4 7 1 3 7 4 4 7 7 , , 1 68 1 3 2 4 38 6 , , 2 9 7 4 3 5 94,628 4 4 0 1 . . 8 7 18.. 37,858 39,750 46,557 49,018 85,385 41.6 25. 34,394 36,314 46,742 40,009 95,575 41.9 Aug. 1.. 34,240 36,289 46,929 41,072 86,751 41.2 8.. 33,715 35,969 46,585 39,295 88,001 41.9 15.. 34,360 36,505 46,807 46,119 85,880 39.3 22.. 35,019 37,118 46,603 46,274 92,926 40.0 29.. 36,197 38,240 48,417 42,825 84,277 41.9 Sept. 5.. 36,523 38,479 48,982 43,142 91,242 41.8 12.. 35,613 37,472 51,223 39,U06 92,124 41.5 19.. 35,099 36,926 51,992 38,014 90,329 41.0 26. 37,431 39,233 56,798 39,820 90,006 40.6 Oct. 3.. 41,425 43,129 60,260 40,716 96,618 42.7 10. 39,789 41,540 61,143 40,638 100,976 40.8 17. 41,054 42,876 60,930 43,531 101,781 41.0 24.. 41,665 43,519 61,152 43,412 104,461 41.6 31.. 56,300 58,048 64,921 48,529 104,564 51.2 ,Nov. 7. 64,672 66,306 66,270 47,523 113,450 58.3 14. 63,298 64,882 67,780 46,547 113,793 56.8 21.. 58,155 59,530 69,176 47,992 114,327 50.8 28., 63,743 65,057 71,006 45,252 117,168 56.0 Dec. 5. 59,622 60,892 71,036 47,542 116,258 51.4 12. 54,989 56,231 72,402 41,736 118,578 49.3 19. 56,181 57,347 74,886 41,237 114,138 49.4 116,123 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

488 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. FEDERALRESERYE BAM OF DALLAS i2 MOVEMENT OF EARNING ASSETS DURING CALENDAR YEAR 1919. Hi as 2S UNITED STATES SECURITIES. as ACCEPTANCES B0U6HT too BO 60 40 20 V. 0 PERCENTAGE OFWXR PAPER TOTOTALDISCQUNTS. PS 2S TOTAL BILLS DISCOUNTED, "D; AND WAR PAPER;W\ 100 100 PS so 0 TOTAL EARNING ASSETS^ JAH\ FEB\MCH\/iPEL\ MAY\l(JNE\JULr\AU6\SEPT\ OCT. \WK\DEC Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTEICT NO. 11—DALLAS. 489 FEPERALRESERVE BANK OF DALLAS i NET DEPOSIT LIABILITY. F.R.NOTE CIRCULATION. CASH RESERVES.AND RESERVE RATI0.I9J9. 70 60 A SO f 40 30 ao 10 0 RESERVE RATIO, F.R. ISOTE CIRCULATION. 140 140 DEP05(TAIiPF.RM0TELIABILITIES;L AHD TOTAL RESERKES/C*. t JAN. FEB. MCH.APRL MATJUIiE JULY' AU6. SEPT. OCT. NOV. DEC Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

490 ANNUAL, REPORT OF THE FEDERAL, RESERVE BOARD. EXHIBIT C.—Comparative statement of Federal Reserve Bank of Dallas, including its branches. Dec. 31, 1919. Dec. 31,1918. Dec. 31,1917. RESOURCES. Bills discounted and bought $64,736,567.87 $47, 973, 536.64 $23,562,604.73 United States bonds and certificates to secure circulation 11,032,400.00 6, 632, 400.00 2,732;400.00 Other United States bonds and Treasury notes 1,998,600.00 1,733,600.00 3,188.600.00 Investment—municipal warrants * 150,458.74 Bank premises 399,398.65 220,783.39 147,736.31 Cash and due from banks (not reserve) 2,515,386 00 1,008,720.00 3,780,011.00 Federal Reserve bank notes on hand 511,050.00 696,500.00 2,732,400.00 Federal Reserve notes on hand 3,713,740 00 1,256,570.00 929,500.00 Actual balance in gold settlement fund 17,073,56926 6,923,261.30 24,520,700.00 Gold with agent for retirement Federal Reserve notes.. 27,544,580.00 22,352,295.00 25,036,675.00 Gold and lawful money 11,378,603.40 9, 289,035.50 13,896,493.91 Gold held with foreign agencies 3;414,325.49 204,010.61 1,837,500.00 Deferred debits—checks and drafts in process of collection 33,789,922.14 8,676,378.98 6,881,975.95 Federal Reserve Banks—transfers bought, net. 8,515,395.13 4,455,917.04 3,619,774.36 War loan expenses (collectible) 213,594.00 511,736.79 65,005.99 Due from other Federal Reserve Banks 4,222,390 29 2, 295, 468.51 Other resources 2,920,836.92 2,512,608.92 233,739.65 Total. 193,980,359.15 116,742,822.68 113,315,575.64 LIABILITIES. Capital stock 3, 420,700.00 3,154,300.00 2,794,900.00 Surplus, profit and loss 3.029,937.23 592,204.25 205,353.08 Federal Reserve notes issued 78, 644,065.00 60,495,080 00 47,716,950.00 Reserve deposits (net) 63,371,988.44 32,453,086.72 44,155,240.99 Governemnt deposits 2, 900346 93 2,493,217.68 6,608,640.55 Due to other Federal Reserve Banks (net) 1,515,970.49 Reserve for tax on circulation 19,481.36 Deferred credits—checks and drafts in process of collection 29,179,103.72 9,857,765.46 7,389,439.58 Federal Reserve bank notes (secured by United States securities) 10,972,400.00 6,236,400 00 2,732,400.00 Reserve for depreciation 240,662 50 240,662.50 Foreign Government credits 1,879,645 46 Reserve for franchise tax 592,204.24 All other liabilities 322,028.51 627,901.83 196,680.95 Total. 193,980,359.15 116,742,822.68 113,315,575.64 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12—SAN FRANCISCO. JOHN PERRIN, Chairman and Federal Reserve Agent. FINANCIAL RESULTS OF OPERATION. The growth of the Federal Reserve Bank of San Francisco during the past two years is shown in Exhibit C. During the year 1919 net deposits increased from $50,694,869 to $108,172,722, an increase of $57,477,853, or 113 per cent, the Federal Reserve Bank of San Francisco now holding fifth place among Federal Reserve Banks in net deposits as compared with sixth place a year ago.1 Gold reserves increased $33,221,000, or 22 per cent during the year, this bank now being in third place among the Federal Reserve Banks as compared with fourth on December 31, 1918. Federal Reserve notes in circulation increased $30,217,000, or 15 per cent, during the year, this bank retaining fifth place in amount of Federal Reserve notes in circulation. Although throughout the year this bank stood sixth among the Federal Reserve Banks in discounted bills held, the fact that it has been third in bills bought in the open market, eighth in bills secured by Government obligations, and has dropped from fifth to tenth in all other bills held, indicates both that the banks in this district had less proportionate need for Federal Reserve discount facilities and that liquidation and return to more normal conditions is progressing more rapidly in this district than in other parts of the country. This bank showed a decrease in holdings of bills secured by Government obligations from $45,024,583, on December 31, 1918, to $43,551,373, on December 31, 1919, and in all other bills discounted for member banks from $33,734,845 to $30,344,585, holdings of all bills discounted for member banks decreasing $4,863,470 during the year. Paid-in capital increased $1,113,200, or 24 per cent, and total resources $109,448,913, or 37 per cent, during the year. While the decrease in discounts with the Federal Reserve Bank reflects clearly the prosperity of the Twelfth Federal Reserve District, increases in the other items in the balance sheet are a reflection both of this prosperity and of the increase in State bank membership during the year, resources of State bank members increasing from $161,580,000 on December 31, 1918 to $664,782,000 on December 31, 1919. Earnings, expenses, and dividends.—Net earnings of $547,043.86 in 1917 rose to $2,869,164.14 in 1918, and $5,589,469.17 in 1919. Dividends at the rate of 6 per cent per annum for the period January 1 to December 31, 1919, amounting to $296,161.65, were paid, 1 Figures of Dec. 26, 1919, taken for comparison with other Federal Reserve Banks. 178983—20 32 491 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

492 ANNUAL KEPOET OF THE FEDERAL RESERVE BOARD. $5,091,198.57 was credited to surplus account, surplus now amounting to 65.5 per cent of subscribed and 131.1 per cent of paid-in capital; and property and buildings were depreciated $168,625. DISCOUNT OPERATIONS. Discounts secured by United States Government war obligations.— The extent to which the Federal Reserve Bank of San Francisco assisted the banks in this district in carrying their proportion of Government loans is illustrated by the fact that bills discounted, secured by Government obligations, varied during the year in proportion to the offerings and redemptions of Treasury certificates of indebtedness. During the period between December 31, 1918 and May 2, 1919, when 8 of the 12 issues of Treasury certificates of indebtedness in anticipation of the Victory Liberty loan were issued, discounts secured by Government obligations increased from $45,- 025,000 to $81,029,000, the record for the year. During the week May 2 to 9, when the first of these certificates matured, member banks' borrowings secured by Government obligations decreased $8,000,000, and between May 9 and July 18, when 5 more of these issues matured, liquidation continued, so that the holdings amounted to only $38,066,000 on July 18. Between this date and September 1, when no certificates were issued and only one issue matured, the amount of such bills held fluctuated between $45,000,000 and $50,000,000. In September, when there were two issues of Treasury certificates of indebtedness in anticipation of Federal taxes and one issue in anticipation of payments on Government loans, holdings of paper secured by Government obligations increased to $54,206,000 and then fluctuated between this amount and $57,000,0()0 until December 1, upon which date there wrere two additional issues of certificates of indebtedness. Coincident with these issues the amount of such bills discounted held by this bank increased to $64,474,000 on December 5, decreased to $41,586,000 on December 19 following the redemption of two issues of certificates of indebtedness on December 15, and amounted to $43,551,000 on December 31, 1919, a net decrease for the year of $1,474,000. During the year 361 out of 731 member banks discounted paper secured by Government obligations. During the war and the year following the signing of the armistice, when the Government of the United States was issuing bonds and certificates of indebtedness in large amounts, this bank followed a liberal policy of granting advances at preferential rates on notes secured by Government obligations. With the diminution of Treasury needs toward the end of 1919, the necessity for such preferential rates ceased, and they were eliminated, except as to paper based on certificates of indebtedness, by the change in discount rates on November 17 and December 26 of the year under review. Bills discounted—All others.—Preferential rates in favor of notes secured by Government obligations resulted in a smaller volume of rediscounts of customers' paper than of Government-secured paper during 1919. Paper discounted for member banks, exclusive of that secured by Government obligations, decreased from $33,735,000 on December 31, 1918, to $14,904,000 on May 2, during the period when bills secured by Government obligations were constantly in- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12—SAST FRANCISCO. 493 creasing. Coincident with the decrease in Government-secured paper during the succeeding month, other bills discounted for member banks continued to decline, reaching $11,544,000 on June 6. The amount held fluctuated between this amount and $17,000,000 until the latter part of September, when, simultaneously with the increase in bills secured by Government obligations, they began increasing and continued to increase until November 21, when they amounted to $32,835,000, the largest amount held at any one time during the year. The amount held on December 31 was $30,345,000, a decrease for the year of $3,390,000. Out of 731 member banks, 278 rediscounted customers' notes during 1919. Total bills discounted for member banks increased from $78,757,000 on December 31, 1918, to $95,931,000 on May 2, during which period member banks borrowed heavily from the Federal Reserve Bank in order to carry their quota of certificates of indebtedness. With the less frequent issues of certificates of indebtedness and the normal slackening of business during the summer months, total bills discounted for member banks decreased to $49,410,000 on July 18, and fluctuated between $57,000,000 and $67,000,000 until the latter part of September, when with additional offerings of certificates of indebtedness, movement of crops and the normal increase in business, total bills discounted for member banks increased to $95,719,000 on December 5 and declined to $73,896,000 on December 31, 422 member banks discounting with the Federal Reserve Bank during the year. Open-market purchases.—This bank has bid consistently for all offerings of prime bankers' acceptances originating in this district, whether offered locally or from other districts, thereby maintaining a market for them in this district as constant and stable as that of New York for acceptances originating there. The rates paid have been, as nearly as ascertainable, identical with those prevailing in New York. The principal market being in New York and the obligation resting upon the whole Federal Reserve System to maintain an open market under all conditions for bankers' acceptances, this bank has regularly participated pro rata in the purchase by the Federal Reserve Bank of New York of acceptances and on occasions has also made purchases from other Federal Reserve Banks needing to replenish their reserves. Bills bought in the open market have shown an almost constant increase throughout the year, the amount held increasing from $36,279,727 on December 31, 1918, to $102,558,191 on December 31, 1919. RESERVE POSITION. The strength of this bank's reserve position is indicated by the fact that at practically all times throughout the year the reserve percentage of the Federal Reserve Bank of San Francisco was slightly in excess of the average of the Federal Reserve System as a whole, and that at all times this bank had excess funds to the extent of from $35,000,000 to $100,000,000 invested in open-market purchases, which, when collected, could if desired be used to increase this bank's reserves. The maximum reserve attained during the year was 61 per cent on July 5 and the minimum was 46.5 per cent on August 5. Gold reserves amounted to $184,193,000 on December 3J, 1919, as compared with $150,972,000 on December 31,1918^ and the liabilit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

494 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. of this bank for Federal Reserve notes in circulation and deposits, after deducting uncollected items, amounted to $350,637,000 on December 31, 1919, as compared with $262,930,000 on December 31, 1918, the reserves being 52.6 per cent of combined Federal Reserve note and net deposit liability on December 31, 1919, as compared with 56 per cent on December 31, 1918. Exhibit B shows the reserve position of this bank throughout the year. RELATIONS WITH NATIONAL BANKS. Movement of membership.—A greater number of new national banks have been organized in this district during the past year than in any previous year since the opening of the Federal Reserve Bank. Thirty new national banks, with capital of $1,465,000, were organized during the year, as compared with 14 banks, with capital of $598,000, during 1918; 14 State banks, with capital of $1,380,000 converted into national banks, as compared with 15, with capital of $880,000, in 1918; and 4 national banks, with capital of $475,000, liquidated or consolidated with other banks, as compared with 5, with capital of $705,000, in 1918, making a net increase during the year of 42 national banks. In addition to this, national banks have increased their capital by $2,887,000, the net increase in capital amounting to $4,257,000. Discount operations.—The major portion of the discounts of the Federal Reserve Bank have naturally been for national-bank members. Out of a total of 594 national banks, 331 have discounted with the Federal Reserve Bank during the year, as compared with 357 out of 554 in 1918, and 156 out of a total of 530 in 1917. Discounts for national banks totaled approximately $1,690,000,000, as compared with $887,000,000 in 1918, and $69,000,000 in 1917. Fiduciary powers.—The amendment to the Federal Reserve Act permitting national banks to exercise all fiduciary powers permitted State banks or trust companies located in the same State as the national bank, has greatly stimulated interest in the organization of trust departments by national banks. Between the passage of this amendment on September 26, 1918, and December 31, 1918, 15 national banks, with capital and surplus of $24,103,000 and resources of $186,907,000, applied for permission to exercise fiduciary powers, all of these applications being granted. During 1919, 32 banks, with capital and surplus of $16,774,000 and resources of $278,930,000, applied for permission to exercise trust powers. Number of applying banks with capital, surplus, and resources, by States, is as follows: State. Number. Capital. Surplus. Resources. Alaska. ... 1 $50,000 $25,000 11,074,000 Arizona . California 7 3,200,000 1,950,000 63,153,000 Idaho . 5 530,000 367,000 10,030,000 Nevada Oregon . 6 1,975,000 1,095,666 46,730,666 Utah Washington 12 5,226,000 2,356,000 ii7,933,666 Total 31 10,981,000 5,793,000 238,930.000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

495 DISTKICT NO. 12—SAN FRANCISCO. Of the applications received, 28 were granted, 1 was refused, and, on December 31, 2 are pending. RELATIONS WITH STATE BANKS AND TRUST COMPANIES. Movement of member ship.—The number of State bank members in this district increased from 87, with capital and surplus of $16,182,000 and resources of $164,133,000 on December 31, 1918, to 137, with capital and surplus of $47,295,000 and resources of $664,808,000, on December 31, 1919. In addition, applications for membership from 31 State banks w^ith resources of $45,545,000 are now pending. This bank now stands second among the Federal Reserve Banks in number of State bank members as compared with fourth on December 31, 1918, although standing eighth in number of State banks in the district. Amendments to the banking laws of the several States in this district which removed obstacles to membership in the Federal Reserve System were passed by the various State legislatures during the early part of the year. During the last six months of the year applications for membership in constantly increasing number have been received from State banks throughout the district. In that period more applications have been received from State banks in California than from those in any other State in the district. Resources of California State bank members amounted to 41 per cent of the resources of eligible State banks in the State on December 31, as compared with approximately 1 per cent of the resources of all eligible California State banks on July 1, 1919. The percentage of resources of State bank members and of State bank members plus State banks with applications pending, to total eligible banks in each State of the district are as follows: Total State. Member. A t p io pl n i s c . a- me a m nd ber applying. \rizona 15.6 15.6 California 41.0 3.7 44.7 Idaho . . .. 55.9 19.0 74.9 Nevada Oregon 49.5 1.9 51.4 Utah 58.7 1.9 60.6 Washington •51.2 3.5 54.7 District. . 42.8 3.8 46.6 Discount operations.-—During the year 91 of the 137 State member banks discounted bills aggregating approximately $260,000,000, as compared with $60,000,000 in 1918. Examinations.-—The rapid growth in the number of State bank members during the year necessitated a corresponding increase in the examining staff and a reorganization of the department of examination to conform with the organization plan of the Federal Reserve agent's department, put into effect on July 1. The present staff consists of a chief examiner, who, in addition to his duties as assistant Federal Reserve agent, has general supervision of the examinations; an assistant chief examiner, who has immediate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

496 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. supervision; four field examiners, with headquarters at Spokane, Portland, Salt Lake City, and Los Angeles, respectively, and at the head offi.ce two assistant examiners, who also assist in the general office work. During the year the examiners and their assistants traveled 60,507 miles and conducted 129 examinations, as follows: State banks for admission, jointly with State authorities 3 State banks for admission, independently 58 State bank members, jointly with State authorities 36 State bank members, independently 23 National banks, jointly with national examiners 7 National banks, independently 2 Total number of examinations 129 The State bank supervisors of the several States in the Twelfth Federal Reserve District have shown a willingness to cooperate with the Federal Reserve Bank of San Francisco and its examiners in every way possible. Two of the State banking departments have adopted forms of this bank for reporting their own examinations, and all have unhesitatingly furnished us with any information desired concerning State bank members. In five of the seven States of this district the superintendent of banks or bank commissioner is now permitted to accept, at his discretion, the examinations of this bank in lieu of those required by his own department and arrangements have been made with the State departments for an exchange of all reports in connection with examinations made of State bank members. Of the 56 State banks which were admitted to membership during the year, 44 were examined by examiners of this bank, 3 were accepted upon the reports of examinations by State banking departments, and 9, being newly organized institutions, were approved after the investigation as to the character of the proposed management of each and upon certificates from the State authorities of compliance with State laws. With the development of an adequate examining staff, the Federal Reserve Bank of San Francisco is now in a position to examine all State banks and trust companies applying for membership. Reserves.—The reserves which State bank members are required to carry with the Federal Reserve Bank against their deposits increased from $7,418,000 on December 31, 1918, to $22,139,000 on November 17, 1919, and approximately $28,000,000 on December 31, 1919, an increase of approximately 400 per cent during the year. Total required reserves of State bank members and State banks with applications pending will be approximately $30,500,000, or approximately 28 per cent of total reserves which all member banks, national and State, carry with the Federal Reserve Bank. FISCAL AGENCY OPERATIONS FOR TREASURY DEPARTMENT. Allotment of Treasury certificates.-—As fiscal agent of the United States Government, the Federal Reserve Bank of San Francisco has issued during the year 11 series of Treasury certificates of indebtedness, which" were issued in anticipation of Federal taxes, and 12 series which were isssued in anticipation of payments for Government Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12—SAN FRANCISCO. 497 bonds. During the same period it has redeemed 8 series of certificates issued in anticipation of taxes and 12 series issued in anticipation of payments for Government loans. On December 31, 1919, there are 9 series outstanding, 5 of which were issued in anticipation of tax payments. Total subscriptions in this district during the year amounted to $750,313,500, divided as follows: [Includes Series 5-A and 5-B, issued in December, 1918, in anticipation of Victory loan.] Number of Subscribed by— Amount. subscriptions. National banks $462,828,500 4,693 State banks 19^011 500 5 751 Trust co iipanies.. 87,053,500 '716 I nlivi duals, firms,and corporations 10,420,000 307 Total 750,313,500 11,469 Deposits oj Treasury funds with hanks.—Of the 1,768 banks in this district, 439 have qualified as Government depositaries for war-loan deposit accounts, making payment by credit on their books for subscriptions to Treasury certificates and Liberty loans, deposits being gradually withdrawn as needed. Out of the total subscriptions of $247,101,500 to certificates of indebtedness issued in anticipation of taxes, $67,269,500 was paid by credit through war-loan deposit accounts; out of a total of other certificates of indebtedness of $440,800,000, payments of $321,553,000 were made in this manner, and out of allotted subscriptions of $294,905,050 to the Victory Liberty loan, payments of $99,683,548.57 were made through such redeposits. During the year the total redeposits amounted to $488,506,048.57, the balance on December 15 being $11,725,161.27. Flotation oj Liberty loans.—The Victory Liberty loan was the only Liberty loan floated during the year. Subscriptions received in this district amounted to $318,675,150 and allotments to $294,905,050. It is interesting to note that out of 945,222 subscribers in this district, 943,136 subscribed for bonds to the amount of $10,000 or less, and only 2,086 for bonds in larger amounts than $10,000. Of the total allotments $212,289,550 went to those subscribing for bonds in the amount of $10,000 or less and $7,2,715,500 to those subscribing for larger amounts. It is anticipated that one of the chief functions of the fiscal agent department during the year 1920 will be the exchange of permanent Liberty loan bonds for temporary bonds. Plans have already been completed for the handling of these exchanges and a force of 75 employees is being trained for the work. Sale of war-savings certificates.—During 1919 the Federal Reserve Bank has continued to act as agent of the Government in selling warsavings stamps and certificates to banks and trust companies, and to individuals who have qualified as collateral agents by the deposit of Liberty bonds as security against the withdrawal of stamps. The publicity work in connection with the war-savings campaign has been combined with the other war-loan activities under a so-called " warloan organization/' under the direct supervision of the governor of the Federal Reserve Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

498 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. NOTE ISSUES. Federal Reserve notes.—Prior to 1919 there was an almost constant increase in the volume in circulation of Federal Reserve notes of this bank, because of the issues of Federal Reserve notes in exchange for gold and the substitution of paper for gold as the ordinary currency of the district. By 1919 this process had been practically completed, with the result that the volume in circulation of Federal Reserve notes of this bank followed with automatic expansion and contraction the needs of the commerce and industry of the district. On December 31, 1918, the amount in circulation of Federal Reserve notes of this bank was $212,244,625, a large amount having gone into circulation during the fall months as a result of the demand for currency in ^connection with fall business and crop movement. After the first of the year the volume in circulation gradually decreased, reaching a minimum for the year of $188,500,000 on March 28. With the normal increase in business during the spring months increased amounts of Federal Reserve notes were called for r those in circulation increasing to $200,361,000 on May 9, after which they gradually decreased to $194,694,000 on June 13, and again increased to $201,000,000 at the end of the month, following the normal demand for money at payment time on June 30. There was a gradual reduction during July, the amount in circulation on August 1 being $194,744,000. With the fall crop movement and general increase in business activity the volume of Federal Reserve notes in circulation showed a constant upward movement each week during the fall, reaching a maximum for the year of $244,863,000 on December 27, the amount in the hands of the public on December 31 amounting to $242,462,000, a net increase for the year of $30,217,000. Inasmuch as the gold reserves of the Federal Reserve Bank of San Francisco increased $33,221,000 during the year, $17,895,405 having been shipped to it from within the district, the remainder coming from settlements with other districts, the total net increase during the year in Federal Reserve note circulation in the district was less by $3,004,000 than the increase in gold reserve. It is interesting to note that the expansion and contraction in the amount of Federal Reserve notes of this bank in circulation has practically paralleled the movement in Federal Reserve note circulation throughout the United States. Prior to 1919 there were no Federal Reserve notes in larger denominations than $100, but this year notes in denominations of $500, $1,000, $5,000, and $10,000 have been issued. Statement of movement of Federal Reserve notes is given in Exhibit B. Federal Reserve lank notes.—The volume of Federal Reserve bank notes in circulation increased from $1,720,034 on December 31, 1918, to $11,844,905 on December 31, 1919. The major portion of these Federal Reserve bank notes, which are issued against the security of United States Government bonds and special certificates of indebtedness, are in bills of $1 and $2 denomination and are issued for the purpose of providing currency to take the place of silver withdrawn from circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

499 DISTRICT NO. 12—SAN FRANCISCO. OPERATION OF FEDERAL RESERVE BANK BRANCHES. During 1917 and 1918 branches of the Federal Reserve Bank of San Francisco were established at Spokane, Seattle, Wash.; Portland, Oreg., and Salt Lake City, Utah, in the order named. On January 2, 1920, a branch will be opened in Los Angeles, Calif., the territory assigned to it being southern California and that part of Arizona located in the Twelfth Federal Reserve District. Number, capital, and resources of member banks in branch territory, and average monthly operations of each branch are as follows: Average monthly, 1919. Total number of dis- Transit items handled Branch. c ( o f b i u r a s n n t t k i 1 s n 1 g To (f t c i a o r l s u t r n 1 e t d s 1 is- C sh u i r p re p n e c d y (Jan. 1-Dec. 15). months). months). to banks. Number. Amount. Spokane 67 $11,213,771 $708,635 169,009 $38,899,102 Seattle 18 19,453,412 2,335,677 202,796 84,538,871 Portland 50 5,548,021 2,043,175 157,383 65,845,451 Salt Lake City 123 39,148,181 848,700 377,276 98,448,665 NOV. 17, 1919. Number of Capital Resources Branch. member of member of member banks. banks. banks. Spokane 86 $7,913,000 $145,304,000 Seattle 50 10,300,000 214,465,000 Portland 102 11,521,000 178,745,000 Salt Lake City 147 12,772,000 214,780,000 INTERNAL ORGANIZATION. Increasing volume of business has resulted in an increase in number of employees from 531 on December 31, 1918, to 567 on December 31, 1919, in spite of a decrease from 207 to 142 in the number of employees in the fiscal agent department, which has acted as fiscal agent of the United States Government in selling, redeeming, and exchanging Government securities. The banking department, including all operating departments' except the transit department, showed an increase of 39 employees from 157 to 196; the transit department 36, from 64 to 100; and other departments, including the Federal Reserve agent's department, etc., 9, from 93 to 102. The number of officers increased from 20 to 27 as a result of the appointment of assistant cashiers at branches and of two assistant Federal Reserve agents. On May 2, 1919, John U. Calkins, formerly deputy governor, was appointed governor to succeed the late James K. Lynch, who had filled the position from August 7, 1917, until his death on April 26, 1919. Subsequently Messrs. William A. Day, formerly assistant deputy governor, and Ira Clerk, formerly cashier, were appointed deputy governor and assistant deputy governor, respectively. Mr. W. N. Ambrose, formerly assistant cashier, has been appointed ashier, effective January 1, 1920. c Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

500 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. On July 1 four divisions were established in the Federal Reserve agent's department, all under the general supervision of the Federal Reserve agent and under the immediate supervision of S. G. Sargent, assistant Federal Reserve agent and chief examiner. These divisions are as follows: Division of examinations; in charge of R. B. Motherwell, assistant chief examiner; division of auditing, in charge of H. S. House, auditor; division of general operations, in charge of E. H. Tucker, assistant Federal Reserve agent; division of analysis and research, in charge of B. F. Wright. In addition to this general organization, Mr. Edward Elliott, class C director of this bank, is manager of the department of State bank membership. CLEARINGS AND COLLECTIONS. Between January and December the daily average number of checks handled by this bank increased from 44,987 for an amount averaging $29,542,497 to 66,680 for an amount averaging $25,912,238. This decrease in value of items handled is a result of the decrease of approximately $8,000,000 per day in value of Government checks handled. A1J banks in the States of California, Idaho, Nevada, and Utah now remit at par for items drawn on them sent by the Federal Reserve Bank, and on December 15 only 114 nonmember banks out of a total of 1,055 in the district were not so remitting at par. GOLD SETTLEMENT FUND. A system of leased wires is now in operation between all Federal Reserve Banks and branches, enabling Federal Reserve Banks to make speedy telegraphic transfers to all parts of the country. Federal Reserve Banks make no charge to their member banks for the service rendered in making the transfers or for the telegraphic service. Daily settlements in the gold settlement fund are made over these wires. During the year transfers involving $5,209,398,000 were made by this bank in the gold settlement fund, transfers to this bank exceeding transfers from it by only $7,552,000, or 0.14 per cent of the transactions during the year. BANKING QUARTERS. This bank owns as a building site the ground bounded by Sacramento, Sansome, Commercial, and Battery Streets, and is temporarily housed in a six-story loft building on the northeast corner of the property. Plans for a new building which, when finished, will occupy the entire premises, are now being completed. The western portion of the new building will be first constructed and occupied, the buildings on the eastern half of the block then being razed and the building completed. "It is impossible to say when building operations will be begun, as this is a matter which must be determined by developments in building conditions." 1 The branches of this bank are all housed in rented quarters. 1 Quotation from press statement issued by Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12—SAN FRANCISCO. 501 GENERAL BUSINESS CONDITIONS. Steady progress toward readjustment to a peace basis has been made during the past year. Unprecedented agricultural, commercial, and industrial activity has prevailed, and labor troubles, which have been very serious at times, appear to be at a minimum as the year closes. During the war the largest industrial development in this district was in shipbuilding. During 1918 the yards on the Pacific coast delivered to the United States Shipping Board 138 steel vessels of 1,182,025 tons, and 74 wooden vessels of 265,500 tons. In spite of strikes and reduced speed in construction, deliveries on this coast during the first 11 months of the year aggregated 189 steel vessels of approximately 1,558,500 tons, and there were in the course of construction on December 1, 68 steel vessels of approximately 610,000 tons. During the same period 118 wooden vessels of 435,120 gross tons were delivered. The largest crops in the history of the district have been harvested and sold at record prices. Arizona and California (including that part of the Imperial Valley situated in Mexico) have grown 176,000 bales of cotton during 1919, an increase of 53,000 bales over 1918, with average yields of 305 pounds and 333 pounds per acre, respectively. These yields, which are the highest per acre in the United States, exceed the average by 147 and 175 pounds, respectively. The 1919 California citrus and deciduous fruit crop was the largest on record. Shipments for the year ending October 31, 1919, totaled 77,559 carloads. The California raisin crop of 200,000 tons, valued at $33,000,000, exceeded that of 1918 by 33,000 tons. Of the 10 leading wool-producing States, 5 are located in the Twelfth Federal Reserve District, which produced approximately 30 per cent of the 1919 wool clip. A large decrease in the higher grades of salmon has resulted in a 1919 salmon pack on the Pacific coast of approximately 7,500,000 cases, compared with 9,000,000 cases in 1918 and 10,000,000 in 1917. The stimulus of high prices, which increased mining output during the war, has now been offset by declining prices for minerals, accompanied by increasing price of materials and high cost of labor. As a consequence all States producing copper, lead, and zinc report decreased production in 1919, the reduction in some cases reaching 50 per cent, and it is predicted that the gold output will be less in all States in the district, except possibly in Nevada. Lumber production and consumption have been at a maximum throughout the year, labor troubles not having seriously affected production. Cessation of building during the war, demands for increased housing facilities and new industrial development throughout the district, and the large increase in the cost of materials and labor account for building permits of $100,234,000 in 19 principal cities of this district, during the first 11 months of the year, as compared with $57,310,000 during 1918 and $67,499,000 during 1917. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

502 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. The increase in business activity and increasing prices have resulted in bank clearings which have ranged each month during the year from 18 to 40 per cent larger than the corresponding month during 1918. Import and export trade has been materially hampered by the lack of ships and by the stevedore strike at San Francisco. A comparative statement of imports and exports during the calendar years 1919, 1918, and 1917 is found in the following table: Imports and exports, Twelfth District. [000 omitted.] Exports. Imports. First 9 First 9 1917 1918 months, 1917 1918 months, 1919. 1919. San Francisco district $175,136 $214,695 $240,532 $231,979 $245,519 $238,027 Los Angeles district 7,179 6,789 15,923 8,063 9,417 15,610 Oregon . 6,416 15,076 44,458 2,439 3,799 3,152 Washington 196,932 296,166 292,274 289,078 300,954 195,919 Total 387,663 532,726 593,187 531,559 559,689 452,708 During the first 11 months of the year, production of petroleum in California aggregated 92,367,338 barrels, shipments 99,616,039 barrels, stored stocks decreasing from 37,907,731 barrels on December 31, 1918, to 31,159,000 barrels on November 31, 1919. Money rates have been stable throughout the year, averaging from 5i to 6 per cent in industrial centers and 8 per cent in agricultural sections. A$ the year closes there is a tendency toward somewhat higher rates. As is natural during a period of great industrial and commercial activity, bank resources have steadily increased during the year. Comparative statement of resources of member banks on December 31, 1918, and on November 17, 1919, is shown in the following table: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

503 DISTRICT NO. 12—SAN FRANCISCO. Comparative statement of the banking resources of member banks of the Twelfth Federal Reserve District, 'Dec. 31, 1918, to Nov. 17, 1919. [000 omitted.] National banks. Stat b e a m nk e s m . ber Combined. Dec. 31, Nov. 17, Dec. 31, Nov. 17, Dec. 31, Nov. 17, 1918 1919 1918 1919 1918 1919 (559 (588 (86 (133 (645 (721 banks). banks). banks). banks). banks). banks). RESOURCES. Loans and discounts $671,936 $874,377 $92,605 $287,948 $764,541 $1,162,325 Stocks, bonds, and other securities 321,810 332,424 31,929 121,033 353,739 453,457 Banking house, furniture and fixtures, other real estate 33,372 37,056 5,243 12,132 38,615 49,188 Cash and exchange 330,545 442,014 32,985 84,731 363,530 526,745 Other resources 43,197 40,171 1,371 7,527 44,568 47,698 Total resources 1,400,860 1,726,042 164,133 513,371 1,564,993 2,239,413 LIABILITIES. Capital 94,090 97,346 11,674 25,781 105,764 123,127 Surplus and undivided profits. 70,395 82,578 7,036 21,034 77,441 103,612 Due to banks 188,887 262,874 14,244 32,351 203,131 295,225 Deposits—demand 694,675 66, 485 157,743 761,160 1,040,681 Deposits—time 196,795 252,905 57,227 262,735 254,022 515,640 Rediscountsl 32,683 38,447 1,842 3,275 34,525 41,722 Money and bonds borrowed 53,076 5,315 11,013 62,303 64,089 Circulation outstanding 61,480 62,971 61,480 62.971 Other liabilities 37,550 31,354 2,152 2,714 39,692 34,068 Total liabilities. 1,400,860 1,726,042 164,133 513,371 1,564,993 2,239,413 i Not included in total liabilities. Retail trade has been exceptionally active, sales, by value, exceeding sales during 1918 by approximately 45 per cent. Statistics of retail sales by department stores in the largest cities of this district have been accumulated by this bank since July 1 of this year and comparative statements of sales and stocks on hand from ; that date until November 30 are given below. Unemployment was a serious factor in the labor situation during the first four months of the year, but by the middle of May the surplus labor had been absorbed, and from that time until November there was full employment throughout the district and a shortage of labor in some sections. With the decrease in number of men employed in the shipyards, the release of labor from the farms, and the winter shutdown of lumber camps, there is, at the close of the year, a small amount of unemployment reported in the Pacific Northwest. Labor unrest has been evidenced by strikes in practically every line where skilled labor is employed, but conditions now appear to be more settled than at any other time during the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

504 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD, EXHIBIT A.—Movement of principal earning assets of the Federal Reserve Bank of San Francisco during the calendar year 1919. [000 omitted.] Discounted pax>er Date. w s U S e a c n t r b a u i o y t t r e e b e s d d li- c i o O D d u a t i p h n s e - e t r e . r d (1+2) P ( e 1- r 4 - c 3 e ). nt m i b n o B a o u r i k l p g l e e h s n t t . b c b i o T o l a u l u o s n n g t d a t d h e l i t d s . - U s S e t n t i c a e i u t t s e e r . i s d - e a a T s r s o n e t i t a n s l g r gations. Jan. 3.. $57,965 S2S,460 $86,425 67.1 $37,351 $123,776 $9,185 $132,961 10., 60,845 29,401 90,246 67.4 35,249 125,495 9,513 135,008 17. 52,275 27,144 79,419 65.8 31,226 110,645 24,021 134,666 24., 64,773 26,245 91,018 71.2 30,932 121,950 9,200 131,150 31. 51,663 25,425 77,088 67.0 28,956 106,044 26,087 132,131 Feb. 7.. 60,745 24,498 85,243 71.3 34,228 119,471 8,864 128,335 14. 66,040 22,619 88.659 74.5 37,351 126,010 8,819 134,829 21.. 65,865 21,722 87,587 75-2 42,440 130,027 8,794 138,821 28.. 70,985 22,460 93,445 76.0 49,841 143,286 7,797 151,083 Mar. 7.. 75,897 21,232 97,129 78.1 49,300 146,429 7,893 154,322 14.. 72,324 19,448 91,772 78.8 47,702 139,474 8,347 147,821 21.. 73,987 17,923 91,910 80.5 47,821 139,731 8,180 147,911 28.. 74,373 19,045 93,418 79.6 43,667 137,085 8,341 145,426 Apr. 4.. 74,483 19,564 94,047 79.2 38,316 132,363 9,144 141,507 11.. 76,719 18,346 95,065 80.7 34,507 129,572 9,715 139,287 18.. 78,995 16,027 95,022 83.1 33,920 128,942 8,677 137,619 25.. 78,421 15,135 93,556 83.8 38,559 132,115 8,606 140,721 May 2.. 81,029 14,904 95,933 84.5 47,362 143,295 8,576 151,871 9.. 73,038 15,622 88.660 82.4 45,036 133,696 8,566 142,262 16.. 77,795 14,314 92,109 84.5 50,723 142,832 8,632 151,464 23.. 70,855 14,478 85,333 83.0 54.822 140,155 9,952 150,107 29.. 70,815 13,469 84,284 84.0 49,197 133,481 10,082 143,563, June 6.. 65,270 11,544 76,814 85.0 49,156 125,970 15,478 141,448 13.. 67,824 12,003 79,827 85.0 54,758 134,585 8,678 143,263 20.. 53,399 12.664 66,063 80.8 65,080 131,143 8,583 139,726 27.. 53,140 14,821 67,961 78.2 65,134 133,095 8,430 141,525 July 3.. 43,955 13,686 57,641 76.2 67,118 124,759 8,431 133,190 11.. 40,781 12,452 53,233 76.6 76,547 129,780 9,263 139,043 18.. 38,066 11,344 49,410 77.0 101,118 150,528 9,272 159,800 25.. 45,518 12,971 58,489 77.8 96,039 154,528 9,273 163,801 Aug. 1.. 46,242 14,192 60,434 76.5 91,906 152,340 9,322 161,662 49,260 15,133 64,393 76.5 87,141 151,534 9,323 160,857 49,936 16,764 66,700 74.9 86,288 152,988 9,303 162,291 50,893 16,899 67,792 75.1 85,303 153,095 9,373 162,468 47,786 15,704 63,490 75.3 81,457 144,947 9,573 154,520 Sept. 51,404 14.609 68,013 77.9 82,875 148,888 12,152 161,040 51,614 14,906 66,520 77.6 87,817 154,337 11,047 165,384 54,206 16,890 71,096 76.2 86,628 157,724 10,856 168,580 51,887 19,244 71,131 72.9 81,130 152,261 10,806 163,067 Oct. 54,045 18,545 72,590 74.5 80,079 152,669 11,171 163,840 53,896 22,865 76,761 70.2 83,921 160,682 12,030 172,712 55,028 22,981 78,009 70.5 90,205 168,214 11,741 179,955 54,949 22,841 77,790 70.6 97,213 175,003 13,397 188,400 56,998 28,424 85,420 66.7 95,349 180,769 13,740 194,509^ Nov. 56,085 30,438 86,523 64.8 93,953 180,476 13,314 193,790 56,502 27,914 84,416 66.9 89,632 174,048 13,312 187,360 56,102 32,835 88,937 63.1 92,988 181,925 13,592 195,517 56,878 29,742 86,620 65.7 96,823 183,443 13,513 196,956 Dec. 64,474 31,245 95,719 67.4 92,566 188,285 14,127 202,412 54,999 29,248 84,247 65.3 87,221 171,468 13,471 184,939 41,585 28,233 69,818 59.6 92,392 162,210 14,095 176,305 46,128 26,065 72,193 63.9 93.107 168,300 14,070 182,370 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12—SAN FRANCISCO. 505 EXHIBIT B.— Movement of gold and cash reserves, Federal Reserve notes, and net deposit liabilities and the reserve percentage of the Federal Reserve Bank of San Francisco during the calendar year of 1919. [000 omitted.] Ratio of cash re- Federal serves to res G e o rv ld es. res C e a r s v h es. a n c R t o e u t s e a e s l r c v in i e r- dep N o e s t its. (3+4.) a n n e R d t e d F s e e e p d rv o e e s r i a t l Date. culation. note liabilities combined. Jan. 3 $150,818 $151,391 $211,518 $60,899 $272,417 55.6 10 157,836 158,332 209,116 71,852 280,968 56.4 17 157.026 157,478 204,581 75,186 279,767 56.3 24 159,254 159,761 199,546 78,875 278,421 57.4 31 157,996 158,416 198,826 79,255 278,081 57.0 Feb. 7 149,564 150,070 196,332 69,447 265,779 56.5 14 155,962 156,302 193,515 84,844 278,359 56.2 20 160,835 161,021 192,393 94,567 286,960 56.1 28, 145,275 145,594 191,340 92,178 283; 518 51.4 Mar. 7. 139,848 140,109 192,888 88,281 281,169 49.8 14, 140,196 140,385 190,770 83,939 274,709 51.1 21 136,258 136,492 190,262 80,708 270,970 50.4 28, 136,394 136,650 188,500 79,878 268,378 50.9 Apr. 4 144,969 145,175 191,014 81,888 272,902 53.2 11 152,075 152,307 189,650 88,020 277,670 54.9 IS 158.863 159,152 191,129 91,707 282,836 56.3 25 154,955 155,282 191,91? 90,176 282,088 55.0 May 2 147,246 147,668 198,304 87,071 285,375 51.7 9 158,974 159,224 200,361 86,635 286,996 55.5 J J u u n ly e 1 1 1 2 2 1 2 2 3 6 8 1 6 3 9 3 0 7 , 1 1 1 1 1 1 1 1 1 1 1 5 8 3 4 3 6 5 4 5 5 4 0 3 3 6 9 4 6 9 1 5 1 , , , , , , , , , , , 1 6 1 7 0 7 0 5 0 4 8 4 6 6 4 2 6 6 5 6 3 3 3 4 6 9 9 9 4 8 4 7 0 1 1 1 1 1 1 1 1 1 1 1 3 6 3 5 4 5 4 5 4 8 5 9 5 0 6 6 3 5 2 9 3 1 , , , , , , , , , , , 3 4 0 9 4 2 0 5 8 9 8 7 1 7 7 3 7 3 1 1 6 0 3 1 4 4 3 9 4 2 8 2 0 2 2 1 1 1 1 1 1 1 1 1 9 0 0 9 9 9 9 9 9 9 9 7 1 1 5 4 4 9 5 5 6 4 , , , , , , , , , , , 7 2 9 7 6 3 2 0 1 0 3 9 3 8 4 9 2 1 6 8 7 1 1 6 9 8 4 8 2 2 2 0 0 1 8 8 8 8 8 9 8 0 7 7 5 6 5 0 6 4 8 4 9 0 , . , , , , , , , , 1 3 3 1 0 0 4 9 5 0 7 9 4 1 5 1 2 4 3 7 1 1 4 4 9 4 6 2 2 0 3 2 2 2 2 2 2 2 2 2 2 0 8 8 7 8 7 8 7 7 9 8 1 0 8 3 4 0 9 2 6 3 0 ; , , , , , , , , , 6 0 8 5 6 8 1 0 3 6 2 3 0 8 9 5 6 4 1 5 4 4 9 4 8 6 4 5 8 7 0 0 4 5 5 5 6 5 5 5 5 5 4 4 1 7 3 3 4 4 4 4 7 1 9 . . . . . . . . . . . 1 3 1 3 3 3 9 6 8 8 2 25 133,360 133,657 194,744 85,360 278,057 48.1 Aug. 1. 144,499 144,766 195,180 83,313 288,225 50-2 8. 147,634 147,896 198,341 93,045 292,791 50.5 15. 140,825 141,084 198,488 94,450 285,895 49.3 22, 156,305 203,521 87,407 292,810 53.4 29 156.027 158,945 207,387 89,289 301,938 52.6 Sept. 5 158,664 155,394 210,372 94,551 302,615 51.4 12 155,158 142,760 210,729 92,243 292,915 48.7 19 142,546 152,101 210,326 82,186 296,330 51.3 26 151,927 164,327 215,429 86,004 309,148 53.2 Oct. 3, 164,135 170,200 215,731 93,719 322,914 52.7 10. 169,973 169,806 214,767 107,183 329,237 51.6 17. 169,551 151,681 216,216 114,470 318,268 47.7 24. 151,396 154,493 217,736 102,052 327,247 47.2 31. 154,177 153,667 220,356 109,511 324,961 47.3 Nov. 7. 153,375 164,423 220,974 104,605 330,603 49.7 14. 164,123 162,033 225,052 109,629 334,718 48.4 21. 161,840 162,679 229,086 109,666 336,568 48.3 28. 162,480 160,154 236,529 107,482 339,162 47.2 Dec. 5. 159,895 184,763 237,507 102,633 346,104 53.4 12. 184,528 186,500 242,041 108,597 338,506 55.1 19. 186,173 192,006 241,867 96,465 349,465 54.9 191,622 107,598 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

506 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. FEDERAL RESERYE BANK OFSANFRANCISCO MOVEMENT OF EARN IMG ASSETS 38 is DURIN6 CALENDAR YEAR 1919. SO • 1 1 so 25 2S 0 0 ACCEPTANCES BOUGHT KX) 80 —1 •»*• ^ SJ SO 40 2O O\ PERCENTAGE Of WAR PAPER TO TOTAL DISCOUNTS 2S TOTAL BILLS DISCOUNTED, 'D^ANP/VAR PAPER,-W: as TOTAL EARttm6 ASSETS. OCT\NOV\DEC. \ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12—SAN FRANCISCO. 507 FEDEMLRESERVEBAHKOFSAnmnCISCO i NET DEPOSIT LIABILITY. fiR NOTE CIRCULATlOli. C4SH RESERVES. AND RESERVE RAW./9I9. 100. so SO 0 DEP0SIT4WER.NOTELIABILITIES/L; AIHD TOTAL RESERYES/Ot JAN. FEB. MCH. APRLMAYJUHE JULY AUG SEPT. OCT. NOV. DEC. Digitized for FRAS1E7R89 83—20 33 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

508 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT C.—Comparative statement. Dec. 31,1919. Dec. 31,1918. Dec. 31,1917. RESOURCES. Total gold reserve $184,192,700 $150,972,012 $94,018,470 Legaltender notes, silver, etc. 345, 882 518,639 408,823 Total reserves. 184,538,582 151,490,651 94,427,293 Bills discounted: Secured by Government war obligations. 43,551,373 45,024,583 2,316,688 All others 30,344,585 33,734,845 23,463,513 Bills bought in open market 102,558,191 36,279,727 17,082,456 Total bills on hand. 176,454,149 j 115,039,155 42,862,657 United States Government bonds 2,632,450 2,460,950 2,455,000 United States Victory notes United States certificates of indebtedness. 11,843,500 5,724,000 1,500,000 Total earning assets. 190,930,099 123,224,105 46,817,657 Bank premises 231,375 405,705 Uncollected items and other deductions from gross deposits 54,273,206 44,671,524 18,718,309 5 per cent redemption fund against Federal Reserve bank notes 665,000 356,400 All other resources 254,396 1,295,360 583,807 Total resources. 430,892,658 321,443,745 160,547,066 LIABILITIES. Capital paid in 5,749,750 4,636,550 4,162,450 Surplus 7,539,374 1,224,088 Government deposits 3,672,894 410,992 12,353,939 Due to members—reserve account 117,929,882 73,235,715 63,779,910 Deferred availability items 34,771,861 19,076,038 9,885,477 Other deposits, including foreign Government credits... 6,071,291 2,643,648 2,620,985 Total gross deposits. 162,445,928 95,366,393 | 88,640,311 Federal Reserve notes in actual circulation 242,461,760 212,244,625 67,744,305 Federal Reserve bank notes in circulation, net liability.. 11,844,905 6,252,055 All other liabilities 850,941 1,720,034 Total liabilities. 430,892,658 321,443,745 160,547,066 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PART III. RECOMMENDATIONS OF THE FEDERAL ADVISORY COUNCIL TO THE FEDERAL RESERVE BOARD FOR THE YEAR 1919. 509 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICERS AND MEMBERS OF THE FEDERAL ADVISORY COUNCIL FOR THE YEAR 1919. OFFICERS. President, JAMES B. FORGAN, Vice President, L. L. RUE. Secretary, MERRITT H. GRIM. EXECUTIVE COMMITTEE. JAMES B. FORGAN. DANIEL G. WING. L. L. RUE. W. S. ROWE. A. B. HEPBURN. F. O. WATTS. MEMBERS. DANIEL G. WING, Federal Reserve District No. 1. A. B. HEPBURN, Federal Reserve District No. 2. L. L. RUE, Federal Reserve District No. 3. W. S. ROWE, Federal Reserve District No. 4. J. G. BROWN, Federal Reserve District No. 5. CHARLES A. LYERLY, Federal Reserve District No. 6. JAMES B. FORGAN, Federal Reserve District No. 7. F. 0. WATTS, Federal Reserve District No. 8. C. T. JAFFRAY, Federal Reserve District No. 9. E. F. SWINNEY, Federal Reserve District No. 10. E. P. WILMOT, Federal Reserve District No. 11. A. L. MILLS, Federal Reserve District No. 12. NOTE.—All recommendations received the unanimous approval of the members present unless otherwise specified. BY-LAWS OF THE FEDERAL ADVISORY COUNCIL. ARTICLE I.—OFFICERS. Officers of this council shall be a president, vice president, and secretary. ARTICLE II.—PRESIDENT AND VICE PRESIDENT. The duties of the president shall be such as usually pertain to the office, and in his absence the vice president shall serve. ARTICLE III.—SECRETARY. The secretary shall be a salaried officer of the council, and his duties and compen sation shall be fixed by the executive committee. ARTICLE IV.—EXECUTIVE COMMITTEE. There shall be an executive committee of six (6) members of the council, of which the president and vice president of the council shall be ex officio members. ARTICLE V.—DUTIES OF EXECUTIVE COMMITTEE. It shall be the duty of the executive committee to keep in close touch with the Federal Reserve Board and with their regulations and promulgations and communicate the same to the members of the council, and to suggest to the council from time to time special matters for consideration. 511 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

512 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. The executive committee shall have power to fix the time and place of holding their regular and special meetings and methods of giving notice thereof. Minutes of all meetings of the executive committee shall be kept, and such minutes or digest thereof shall be immediately forwarded to each member of the council. A majority of the executive committee shall constitute a quorum, and action of the committee shall be by a majority of those present at any meeting. ARTICLE VI.—MEETINGS. Regular meetings of the Federal Advisory Council shall be held in the city of Washington on the third Monday of the months of February, May, September, and November of each year. Special meetings may be called at any time and place by the president or the executive committee, and shall be called by the president upon written request of any three members of the council. ARTICLE VII.—AMENDMENTS. These by-laws may be changed or amended at any regular meeting by a vote of a majority of the members of the Federal Advisory Council. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECOMMENDATIONS OF THE FEDERAL ADVISORY COUNCIL TO THE FEDERAL RESERVE BOARD. WASHINGTON, D. C, February 18, 1919. The FEDERAL RESERVE BOARD, Washington, D. 0. GENTLEMEN: AS suggested when we last met in conference the members of this council have each made inquiry among the member banks to ascertain how they feel in regard to the administration of the Federal Reserve Banks of their respective districts and as to whether there now exist any criticisms or suggestions, the correction or adoption of which would improve the working of the Federal Reserve System. We are pleased to report that we find no criticisms that in any way reflect on the policies of the Federal Reserve Board or on the management of the Federal Reserve Banks as they are now admin'stered under the terms of the Federal Reserve Act. We believe there is a growing appreciation of the usefulness of the Federal Reserve system, a pride in what it has accomplished during the strain caused by the war and an increasing confidence that it will continue to function satisfactorily during the remainder of the Government war financing and the reconstruction period and that it will continue to be a bulwark of strength to its member banks when business is reestablished on a peace basis. The few suggestions that have come to us are not of a vital nature. They are as follows: TOPIC NO. 1.—It is suggested that the present law should be so amended as to require all new national banks to have the approval of the Federal Reserve Board before they are permitted to begin business. Recommendation.—The council is of the opinion that the Federal Reserve Board having facilities for investigation through the official staffs of the Federal Reserve Banks should have this authority placed upon it and that section 5169 should be so amended. TOPIC NO. 2.—It has been suggested that the Federal Reserve Banks should send all checks and other items for collection directly to the town or city in which they are payable even if such town or city is located in another Federal Reserve district rather than send them in the first place to the Federal Reserve Bank of the district as is now the practice with at least some of the banks. Recommendation.—The council is of opinion that collections should be made in the most direct and expeditious way possible and would recommend that in the interest of increased and better service the Board should look into this matter with the view of seeing to it that due diligence is exercised by the transit departments of the Federal Reserve Banks in the matter of check collections. 513 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

014 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. TOPIC NO. 3.—It has been suggested that the council should recommend that the Federal Reserve Act should be amended so as to permit member banks to borrow on their promissory notes secured by United States Government obligations for a period of 90 davs. instead of for the short period of 15 days, which is the time limitation now put upon them by section 13 of the Federal Reserve Act. Recommendation.—This would prove a great convenience to both the Federal Reserve Banks and to the member banks. The council would recommend that the necessary legislation be asked to extend the period to not exceeding 90 days and to last until the Government war financing has been fully accomplished and its bonds have been better distributed among permanent investors (Mr. Wing and Mr. Mills voted in the negative.) TOPIC NO. 4.—It has been suggested that the Federal Advisory Council should recommend that the contingent liability of Federal Reserve Banks on account of bills rediscounted with other Federal Reserve Banks should be shown in the published statements of the banks so re discounting. Recommendation.—It is most desirable that each of the Federal Reserve Banks should disclose its actual condition in all of its published statements and as this is not done if its contingent liability for bills rediscounted is not shown, the council would recommend that the Federal Reserve Board make a ruling requiring them to do so. TOPIC NO. 5.—It is suggested that the Federal Reserve Banks should receive on deposit national-bank notes and pay out in place of them clean Federal Reserve notes. Recommendation.—The council recommends that the Federal Reserve Board as a matter of additional service to member banks request the Federal Reserve Banks to receive on deposit for immediate credit from member banks national-bank notes unfit for circulation. TOPIC NO. 6.—Should the council again call to the attention of the Federal Reserve Board its recommendation for a plan under which instant credit should be given to the members' reserve accounts for bank acceptances paid to any Federal Reserve Bank ? Recommendation.—The council at its last meeting recommended that this be done and would respectfully inquire what progress if any has been made to put the plan in operation 1 TOPIC NO. 7.—You have asked our opinion as to the terms under which the next Government bond issue should be offered to the public. Some suggestions have also come to us from member banks as to such terms, as follows: (a) The length of time the bonds should run to maturity. (6) The rate of interest they should bear. (c) The extent to which they should be exempt from taxation. (d) Should they be made acceptable at their face value by the Government in payment of inheritance taxes ? Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECOMMENDATIONS OF FEDERAL ADVISORY COUNCIL. 515 Recommendation.—After full discussion of this topic the council voted as follows: (a) That the life of the proposed Victory loan bonds should not exceed five years (unanimous). (b) and (c) That two classes of bonds should be offered, one free of all taxes and one subject to surtaxes. The following vote indicates the opinion of each member of the council as to the rate of interest on the two issues suggested: Tax free. Surtax. Tax free. Surtax. Per cent. Per cent. Per cent. Per cent. Mr. Wing.... 4 5 Mr. Forgan 4 Mr. Hepburn 3.65 4| Mr. Watts Mr. Rue 4 4f Mr. Jaffray Mr. Rowe 4 4f Mr. Swinney " Mr. Brown... 4 5 Mr. Wilmot - Mr. Lyerly... 4 5 Mr.Mills - Mr. Watts' vote indicates his disapproval of the issue of any bonds exempt from surtaxes. (d) It was unanimously voted that both issues of bonds be made acceptable by the Government at par and accrued interest for inheritance taxes. It is also the opinion of the council that both issues should be made convertible at the option of the holder during the term of the bonds into a 20 or 30 year 4J per cent bond subject to surtax. TOPIC NO. 8.—You have asked our advice as to the discount rates current at the Federal Reserve Banks particularly as they are affected by the amount of Government issues remaining undigested as evidenced by the fact that the larger part of the invested assets of the Federal Reserve Banks consists of member banks' 15-day notes secured by Liberty bonds and Treasury certificates and of customers' notes maturing within 90 days secured in like manner. The Board would like the opinion of the council as to the merits of differential rates. Assuming the differentials have been necessary to aid the Treasury in floating its securities, does the council feel that differentials with respect to the character of paper and not to time of maturity should be continued as a permanent policy. Recommendation.—Until the Liberty bonds already issued and the Victory bonds to be issued are distributed among permanent investors and paid for by them and until the banks are relieved of the obligation they are under to carry such large lines of them for their patriotic customers who have gone in debt for them, and until our Government gets through with its temporary financing on short-time certificates, the discount rates at the Federal Reserve Banks should continue to show some preference on loans covered by Government securities. The rates might well be continued as they now are until after the next bond issue has been placed, but there will come a time when such preference should not be continued; otherwise loans on Government securities will continue to form too large a proportion of the Federal Reserve Bank loans to the disadvantage of commercial paper and therefore to the disadvantage of industrial and commercial enterprise. The financial necessities of the Government for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

516 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. the payment of its war debts will, however, have to be met and provided for before such discrimination, in favor of loans covered by (jovernment securities as will induce people to borrow to pay for them in anticipation of their future earnings and incomes can be discontinued. TOPIC NO. 9.—You have asked for the views of the council, as to whether it will be necessary for some time to come in order to develop an acceptance market in this country to stimulate it by a low rate at the Federal Reserve Banks, and you have drawn our attention to the lower rates prevailing in London for bankers7 acceptances than those current here. Recommendation.—In the opinion of the council the acceptance market in this country is developing as well as could be expected. The market for bankers' acceptances is now and has been materially interfered with by our Government's financing on certificates of indebtedness. This interference will continue as long as the Government continues its short-time financing. In the meantime, the acceptance rates at the Federal Reserve Banks should be maintained just about as they have been. When conditions again settle down on a peace basis supply and demand combined with competition in foreign markets will govern such rates. In comparing discount rates for bankers7 acceptances current here with those current in London, it should be remembered that during recent years much of Europe's foreign business, particularly that of England, has been financed through loans made by our Government. In this connection it is of interest to note that the acceptance business of the London banks and banks domiciled in London, on December 31, 1912, amounted to approximately £117,000,000 sterling, while on December 31, 1917, the same had fallen to approximately £82,000,000. On August 31, 1918, it had advanced to £86,000,000. This decrease of from 25 to 30 per cent in the volume of the London acceptance business, together with the fact that our loans to the British Government had the effect of largely relieving the London banks of responsibility for financing their Government on short-time obligations, while it threw exactly that burden on the banks of this country, largely account for the low discount rates for acceptances prevailing there and for the higher rates prevailing here. When England again resumes the financing of her imports and exports through the ordinary banking channels and the present artificial restrictions are withdrawn by both Governments in connection with their imports and exports, and our Government restrictions on all foreign exchange transactions are re moved, a better equilibrium of the two discount markets is likely to be established. In other words, foreign exchange markets during the war have been in quite an abnormal condition and are likely to continue so until Government war debts between the nations are finally and permanently adjusted and international business transactions return to their normal and natural course free from the governmental restrictions and impediments placed on them during the war. Until then existing conditions do not afford an equitable basis on which a comparison of current rates existing in London and New York can be made. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECOMMENDATIONS OF FEDERAL ADVISORY COUNCIL. 517 TOPIC NO. 10.—The Council would draw the attention of the Federal Reserve Board to the following: Under the provisions of section 5202 of the National Bank Act the liabilities incurred by a national bank directly and indirectly can not exceed the amount of its capital stock except for certain purposes named. It would seem that the amount of bills of exchange which a national bank may discount in London and other foreign centers comes under the prohibition of this section. The rate at which 60 or 90 day bills of exchange on London are sold in this country is based upon the Sterling cable rate less certain deductions, principally an interest charge at the open market rate in London for discounting bills. This rate, which to-day is 3^Q percent, rules much below market rates for money in this country. In purchasing export Sterling bills a national bank must discount the bill in London immediately upon its arrival if it is to engage in a profitable transaction. If it does not discount the bill, it carries a 3Y$ per cent investment to maturity, when money in this country is worth more. This no bank will do. But to engage in this class of business to the extent required by the demands of American exporters, and to discount the bills purchased upon their arrival in London, the contingent liability created by the bank by the indorsement of bills will quickly exceed the amount of its capital. Again, while the rediscount of domestic acceptances with the Federal Reserve Bank does not come within the prohibitions of section 5202, it is probably true that the discount of such acceptances through channels other than the Federal Reserve Bank does come under such prohibition. As it is the desire of the Federal Government and the Federal Reserve Board to encourage as far as possible the development of bankers' acceptances and the financing of foreign commerce by American banks to meet the competition of London banks, it is suggested that section 5202 be amended so as to exclude from its prohibitions the liability created by a national bank as an indorser on accepted bills of exchange actually owned by the bank and rediscounted at home or abroad, or if this object can be accomplished by a ruling of the Federal Reserve Board it would be more desirable than to attempt an amendment to the act. There is no limit in the amount of bills drawn against actually existing values which a bank may purchase and hold, hence it would seem logical that there should be no limit upon the amount which a bank might negotiate by indorsement. The following members of the Federal Advisory Council were present at this meeting: Messrs. James B. Forgan, president; L. L. Rue, vice president; D. G. Wing, A. B. Hepburn, W. S. RowTe, J. G. Brown, C. A. Lyerly, F. O. Watts, C. T. Jaffray, E. F. Swinney, E. P. Wilmot, A. L. Mills, and Merritt H. Grim, secretary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

518 ANNUAL REPORT OF THE FEDERAL. RESERVE BOARD. Recommendations of the Federal Advisory Council to the Federal Reserve Board May 19, 1919. TOPIC NO. 1.—Investment power of the United States. (a) Demands for capital at home and abroad. (b) Division of investment power between home and foreign needs. Recommendation.,—-The investment power of the United States depends primarily upon the amount of the country's savings and the portion of such savings available for new investment, of both of which it is difficult to secure a reliable estimate. Since we entered the war the demand for capital at home for municipal and corporation needs has been restricted by Government mandates and surplus savings have been more than absorbed by Government issues, for war purposes, including large loans to our allies. Not only have current savings been thus absorbed but future accumulations have been largely drawn upon. The ordinary requirements of municipalities and corporations relieved from Government restrictions will doubtless, from now on, be largely increased, while the demands of the Federal Government, although likely to continue an important factor for some years to come, should gradually be diminished. The demands for capital at home will and should receive our first attention. The railroad requirements, especially when they are returned to their owners by the Government, will have to be met. Railroad securities will have to be protected and the market for them stabilized. This should have the effect of reestablishing a better market for all our domestic securities and of preparing the way for a market for foreign investments. It would seem that with the large international balances likely to continue in our favor we should have a large surplus of capital available for investment in the securities of our debtor countries. In the interest of our foreign trade it will be necessary that such investments should be made, otherwise the means of settling balances due us by foreign countries will not be available to them. TOPIC NO. 2.—Maintenance of exports. (a) Intensity and duration of foreign demand. Recommendation.—Undoubtedly the undeveloped portions of the world, such as South America, and the East, will continue to need our goods, especially our raw products and certain kinds of machinery. It is not likely, however, that many of the European countries will continue indefinitely to require our manufactured goods in large quantity. It is probably not even desirable that we should seek to control European markets indefinitely, otherwise our Allies, if prevented to any great extent from selling goods in their own territory might find it impossible to readjust their own finances. Moreover leaving out of account all question of wages and the like it is very doubtful if we could compete with the European countries in many lines of manufactured goods on an even basis in view of the cost of their transportation. The sale of agricultural implements will doubtless continue to Russia and similar countries when reliable governments are again established in them. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECOMMENDATIONS OF FEDERAL ADVISORY COUNCIL. 519 (b) Best method of financing exports. Recommendation.—The best method of financing exports is for the foreign purchaser to arrange through his bank open dollar credits with American institutions. In some countries such as Finland it is impossible to obtain dollar credits and it is still necessaiy to arbitrage through London. The burden and exchange risk in such transactions should be thrown upon the purchaser who in making his estimates must take into account the fluctuations that may take place in the relation of value of his currency to sterling and the relation of the value of sterling to the dollar. He is in a better position to do this, however, than the American exporter. (c) What would constitute satisfactory security for foreign credits ? Recommendation.—In countries whose financial condition has not been too seriously inflated or otherwise impaired their government, municipal, or public utility obligations deposited in this country would constitute satisfactory security for foreign credits. In the case of undeveloped countries such as some of the South American States it may be necessary for the country to mortgage its customs revenues or in some such way to secure the payment of its debts. This may be the only way in which such countries can get the credit they require and without which they would find it difficult to make progress. The obligations of the foreign corporations, firms, or individuals, who purchase our raw materials or manufactured goods, endorsed or guaranteed by their banks or bankers and (or) by their governments, would probably in some cases form the best obtainable security. TOPIC NO. 3.—Investment trusts. Recommendation.—This seems to be a very feasible method of floating foreign bonds in this country. It has already been adopted by the organization in New York of the Foreign Bond and Share Corporation, with an authorized capital of $10,000,000, the initial payment of which is being made to-day, and will doubtless be followed by other similar concerns as the necessity for them arises. The people of this country have not heretofore invested in foreign securities to any great extent and in order to accustom them to do so it will undoubtedly be necessary to have the foreign securities thoroughly investigated and held by corporations organized for that purpose in this country, which, in turn will issue their own stock, bonds, or debentures, based upon the foreign investments they make. TOPIC NO. 4.—Foreign exchange situation. (a) To what extent does depreciation tend to reduce buying power abroad ? (b) Adjustment of trade to new basis of supply and demand on altered level of quotations. Recommendation.—It would seem that the depreciation of the currency in any given foreign country wall tend to reduce the purchasing power of that country by practically the amount of such Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

520 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. existing depreciation on the aggregate amount it has to spend in other countries. If, for illustration, Great Britain has a certain amount of money wherewith to buy goods in this country and if sterling has depreciated, say, 10 per cent, in relation to the dollar, it is obvious Great Britain wall be able by just that much less to purchase goods in this country. If, however, the sterling has depreciated 10 per cent in relation to our dollar and only, say, 5 per cent in its relation to the Argentine peso, then likely such raw materials as can be had from either country would be bought in the Argentine rather than here. This, however, does not change the fundamental fact that in every instance the depreciation will affect the purchasing power of sterling by just the amount of its depreciation in relation to the currency of other countries. If the depreciation of sterling becomes very great it may in time prevent Great Britain or other countries from purchasing anything in this country except such raw materials as can not be obtained elsewhere in sufficient quantity and which are essential for the maintenance of industry or life. It is therefore to cur interest to see to it, that the depreciation of the currency of any country with which we have trade or financial relations does not become so heavy as to hamper the proper development of such relations. Depreciation of international exchange is a deterrent to actual purchasing and will reduce the total amount of a country's purchases considerably below its purchasing power. TOPIC NO. 5.—-War Finance Corporation. How can it best cooperate with commercial banks in extending credit based on export transactions ? Recommendation.—By independently financing the longer time credits based on export transactions. TOPIC NO. 6.—Use of acceptances. (a) Can trade acceptances payable at a member bank be remitted for upon collection without charge ? Recommendation.—In our opinion trade acceptances, provided they are payable at banks which are members of the Federal Reserve Bank clearing system, should be treated like checks. We understand that at least some of the Federal Reserve Banks are now treating them on the same basis as checks, but in some cases they meet with charges made by the collecting banks, which they of course in turn charge to the depositing bank. A uniform method in regard to the collection of such items would be desirable. (6) Domestic acceptances—Definition of the words "readily marketable staples" which appear in that paragraph of section 13 of the act reading as follows: "Or which are secured at the time of acceptance by a warehouse receipt or other such document conveying or securing title covering readily marketable staples." Recommendation.—"Readily marketable staples" should be construed to mean all raw products, such as cotton, grain and other foodstuffs, ores and common chemicals enjoying a broad market, thoroughly standardized and fairly nonperishable. There may be some lines of manufactured goods sufficiently standardized as to methods Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECOMMENDATIONS OF FEDERAL ADVISORY COUNCIL* 521 of production, styles, uses, customs, and other factors and for which there exists a broad enough market to warrant their inclusion in a list of ^ readily marketable staples " and it would be desirable if the Federal Keserve Board after full investigation, w^ere to issue a list of staples which it considers readily marketable at all times and under all conditions. TOPIC NO. 7.—Limitation of total volume of outstanding acceptances of foreign banking corporations organized under the provisions of section 25 of the Federal Reserve Act to a specified multiple of the foreign banking corporation's capital. NOTE.—The practice of the Board has been to authorize new foreign banking corporations to accept up to six times their capital stock, but as this limit has been reached the proportion has been increased so that in one instance, at least, a foreign banking corporation was authorized to accept up to twelve times its capital stock. A recommendation as to a final limitation is requested. Recommendation.—We doubt if a specific multiple of the capital of a foreign banking corporation operating under the Federal Reserve Act forms the proper limitation of the total volume of its outstanding acceptances. It is self-evident that a much larger acceptance business may be safely done where the acceptances are satisfactorily secured by a great diversity of merchandise shipped to many different firms in different parts of the world, than where such acceptances are secured by relatively large shipments of one line of merchandise to a comparatively few consignees in more or less the same part of the world. The strength of the acceptance business lies in the wide distribution and the diversity of the merchandise against which acceptances are made, the staple quality of the merchandise drawn against and the strength of the shippers and consignees. We are therefore inclined to advise that the Federal Reserve Board should not lay down very specific rules, but should leave the foreign banking corporations some latitude in doing this business, always making careful investigation as to the nature and quality of the business done and the risks assumed by such corporations in granting too large individual lines of credit against any single kind of merchandise. ADDITIONAL TOPICS SUGGESTED BY GOV. HARDING. TOPIC NO. 8.—What should be done when a Federal Reserve Bank's reserve is practically exhausted or is maintained by borrowing from other Federal Reserve Banks ? Recommendation.—Where any Federal Reserve Bank is in an overloaned condition resulting in a too prolonged deficiency in reserve, the corrective measure to be applied in our opinion would be an increase in the rate on loans whether secured by Government securities or otherwise. TOPIC NO. 9.—Amendment to Federal Reserve Act to provide for increasing the boards of directors of Federal Reserve Banks to 11 members, 4 of whom should be class C directors appointed by the Federal Reserve Board, and the governors to be elected by the boards to be also ex officio members of the boards. Recommendation.—The council approves of the suggestion of Governor Harding that the boards of directors of the Federal Reserve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

522 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. Banks should be increased to 11 members, 4 of whom should be class C directors appointed by the Federal Reserve Board, and that the governors elected by the boards of directors should also be ex officio directors. TOPIC NO. 10.—Embargo on gold exports. Recommendation.—In the opinion of the council the time has arrived when the embargo on the export of gold can safely be lifted. TOPICS SUGGESTED BY MEMBERS OF THE COUNCIL. (Mr. Mills.) TOPIC NO. 11.—Have 5 per cent redemption fund transferred to Federal Reserve Bank of district so national bank notes may be redeemed without sending them to Washington. Recommendation.—In view of the fact that the gold formerly carried by the national banks in their vaults is now concentrated in the Federal Reserve Banks, we would suggest for the consideration of the Federal Reserve Board whether it would not be logical and at the same time improve the service to member banks if the 5 per cent redemption fund were transferred to the Federal Reserve Banks and have them redeem national bank notes without sending them to Washington. TOPIC NO. 12.—Have Federal Reserve Banks supply silver and fractional coin to member banks without cost. Recommendation.—The council recommends to the Federal Reserve Board that they should consider the advisability of having Federal Reserve Banks, as an additional service to member banks, supply them with silver and fractional coin without cost. TOPIC NO. 13.—It is desirable in each Federal Reserve district to appoint an alternate or proxy who may represent the district member at meetings of the Federal Advisory Council. Recommendation.—The council refers this matter to the Federal Reserve Board with the request that they submit it for the opinion of their legal counsel and report his finding as to the legality of such procedure to the president of this council before its next statutory meeting. The following members of the Federal Advisory Council wTere present at this meeting: James B. Forgan, president. L. L. Rue, vice president. D. G. Wing, A. B. Hepburn, W. S. Rowe, J. G. Brown, C. A. Lyerly, E. F. Swinney, E. P. Wimot, A. L. Mills, and Merritt H. Grim, secretary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BECOMMENDATIONS OF FEDERAL ADVISORY COUNCIL. 523 Recommendations of the Federal Advisory Council to the Federal Reserve Board September 16, 1919. TOPIC NO. 1.—Senate bills 2582 and 2590. [S. 2582. 66th Cong., 1st sess. In the Senate of the United States. July 22,1919.] Mr. Owen introduced the following bill; which was read twice and referred to the Committee on Banking and Currency. A Bill To amend the act approved December 23, 1913. known as the Federal Reserve Act, as amended by the acts of August 4, 1914, August 15, 1914, March 3, 1915, September 7, 1916, and June 21, 1917. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 14 of the Act known as the Federal Reserve Act be, and is hereby, amended as follows: Strike out all in paragraph (e) of section 14 and insert in lieu thereof: '' (e) To establish accounts with other Federal Reserve Banks and with the Fed eral Re-erve Foreign Bank." After section 25 insert a new section, a^ follows: "SEC. 25a. There is hereby created a Federal Reserve Foreign Bank of the United States, to be under the supervision of the Federal Reserve Board, and to be located in the city of New York, State of New York. "The Federal Reserve Foreign Bank of the United States, hereinafter referred to as the foreign bank, shall have an authorized capital of $100,000,000, and shall begin business with a paid-up capital stock of $20,000,000. The stock of such bank shall be offered at par to the banks of the United States and to the public hv the Secretary of the Treasury, any ?tock not subscribed for to be taken by the Treasury of the United States subject to sale at the option of the Secretary of the Treasury. "The capital stock of the foreign bank shall pay 5 per centum annual dividends if earned and shall not be taxable by any State or municipality or by the United States. The 5 per centum dividend if not earned in any one year shall be cumulative. Any surplus shall be distributed as follows: One-half to surplus and one-half to the United States, until 50 per centum surplus on the then outstanding capital shall have been accumulated, and thereafter such surplus dividends shall be paid into the Treasury of the United States. "The Federal Reserve Board shall prepare an organization certificate and file the same with the Comptroller of the Currency. "Upon the filing of such certificate with the Comptroller of the Currency, as aforesaid, the said foreign bank shall become a body corporate, and as such shall have the power—• "First. To adopt and use a corporate seal. "Second. To have succession for a period of twenty years from its organization unless it is sooner dissolved by an act of Congress. "Third. To make contracts. "Fourth. To sue and be sued, complain and defend, in any court of law^ or equity. "Fifth. To appoint by its board of directors such officers and employees as are not otherwise provided for in this act, to define their duties, require bonds of them and fix the penalty thereof, and to dismiss at pleasure such officers or employees. "Sixth. To prescribe by its board of directors by-laws, not inconsistent with law, regulating the manner in which its general business may be conducted, and the privileges granted to it by law may be exercised and enjoyed. "Seventh. To exercise by its board of directors, or duly authorized officers or agents, all powers specifically granted by the provisions of this act and such incidental powers as shall be necessary to carry on the business of banking within the limitations prescribed by this act*. "The foreign bank shall Ipe conducted under the supervision and control of a board of directors, consisting of nine members appointed by the President upon the advice and consent of the Senate. "One of the directors appointed by the President shall be known as the governor, one as vice governor, and one as the Federal Reserve agent. The directors shall name a committee of five as an executive board to actually manage the affairs of the bank. The members of the board shall be citizens of the United States over thirtyfive years of age, and be men of tested mercantile experience, and be fairly representative of the various parts of the United States. "The directors shall be designated by the President to serve for from one to nine years, respectively, and thereafter each member so appointed shall serve for a term of nine years, unless sooner removed for cause by the President. 178983—20 34 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

524 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. "After the first year the directors shall annually elect the governor and vice governor from among the directors appointed by the President of the United States. "The salaries of the directors and officers shall be fixed by the Federal Reserve Board and be paid from the earnings of the foreign bank: Provided, That the governor of the foreign bank shall receive $25,000, the vice governor $15,000, and the reserve agent $10,000. "The directors of the foreign bank shall receive in addition to their salary a rea- S3nable allowance for necessary7 expenses in attending meetings of the board. "The board of directors shall perform the duties usually appertaining to the office of directors of banking associations and perform all such duties as are prescribed by law. "Said board shall administer the affairs of the foreign bank fairly and impartially and without discrimination, and shall, subject to the provisions of law and the orders of the Federal Reserve Board, extend to Federal Reserve banks and to member banks, and to ?\\ other banks and bankers throughout the country, and to foreign banks and bankers such accommodations as may be safely and reasonably made in relation to foreign banking business. "The powers of the foreign banks shall be as follows: "To receive deposits from American and foreign banks and bankers, from the United States or foreign Governments, in current funds in lawful money, nationalbank notes. Federal Reserve notes or checks and drafts, payable upon presentation, and also for the collection of maturing notes and bills. "The foreign bank may discount notes, drafts, and bill of exchange arising out of actual commercial transactions; that is, notes, drafts, and bills of exchange issued or drawn for agricultural, industrial, or commercial purposes, or the proceeds of which have been used or which are to be used for such purposes, the Federal Reserve Board to have the right to determine or define the character of the paper thus eligible for discount within the meaning of this act. "The aggregate of such notes, drafts, and bills, bearing the signature or indoresement of any one borrower, whether a person, company, firm, or corporation, rediscounted for any one bank, shall at no time exceed 5 per centum of the net unimpaired capital and surplus of said foreign bank, but this restriction shall not apply to the discounting of bills of exchange drawn in good faith against actual existing values. The foreign bank may discount acceptances of the kinds permitted under the authority of this act. "The foreign bank shall not at any time be indebted or in any way liable to an amount exceeding the amount of its capital stock at such time actually paid in and remaining undiminished by losses or otherwise, except on account of demands of the following nature: "First. Notes of circulation. "Second. Moneys deposited with or collected by the foreign bank. "Third. Bills of exchange or drafts drawn against money actually on deposit to the credit of the foreign bank or due thereto. "Fourth. Liabilities to the stockholders of the foreign bank for dividends and reserve profits. "Fifth. Liabilities incurred under the provisions of the Federal Reserve Act. The discounting and rediscounting and the purchase or sale by the foreign bank of any bills receivable and of domestic and foreign bills of exchange and of acceptances shall be subject to such limitations, restrictions, and regulations as may be imposed by the Federal Reserve Board. "The foreign bank shall have power— "(a) To deal in gold and silver coin and bullion at home or abroad, to make loans thereon, exchange Federal Reserve notes for gold, gold coin, or gold certificates, and to contract for loans of gold coin or bullion, giving therefor, when necessary, acceptable security, including the hypothecation of United States bonds or other securities which Federal Reserve banks are authorized to hold: "(6) To buy and sell, at home or abroad, bonds and notes of the United States, bonds and notes of foreign Governments, and bills, notes, revenue bonds, and warrants, with a maturity from date of purchase of not exceeding six months, issued in anticipation of the collection of taxes or in anticipation of the receipt of assured revenues by any State, county, district, political subdivision, or municipality in the continental United States, including irrigation, drainage, and reclamation districts, such purchases to be made in accordance with rules and regulations prescribed by the Federal Reserve Board; "(c) To purchase and to sell, with or without its indorsement, bills of exchange arising out of commercial transactions as hereinbefore defined; "(d) To establish from time to time, subject to review and determination of the Federal Reserve Board, rates of discount and exchange and commissions for the opening of credits at home or abroad, to be charged by the foreign bank for each Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

KECOMMENDATIONS OF FEDERAL ADVISORY COUNCIL. 525 clasp of paper which shall be fixed with a view to accommodating commerce and business. "(e). To issue bank notes and receive Federal Reserve notes upon like term? and conditions a? now provided for the Federal Reserve Banks. "(f) To open credits at home and abroad for account of domestic and foreign bankfor bankers, to facilitate exports and imports to and from the United States, and exports and imports to and from one foreign country to another foreign country. "(g) Upon the direction and under rules and regulations prescribed by the Federal Reserve Board to establish branches and agencies in foreign countries for the purpose of facilitating commerce with the United States. "(h) No bank, banker, corporation, or individual, other than the foreign bank, shall sell dollar balances at less than gold par except as payment for merchandise imported into the United States without the express authority of the Federal Reserve Board." [S. 2590. 66th Cong., 1st sess. In the Senate of the United States. July 22,1919.] Mr. Owen introduced the following bill; which was read twice and referred to the Committee on Banking and Currency. A Bill To incorporate a Foreign Finance Corporation to provide means of acquiring and selling public and private foreign securities, extending credits against the same, and assisting in the development of the foreign trade of the United States, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That a Foreign Finance Corporation shall be established with a capital of $1,000,000,000, divided into ten million shares of $100 each. Two million five hundred thousand shares shall be subscribed and paid for by the War Finance Corporation, two million five hundred thousand shares may be subscribed and paid for by banks and trust companies incorporated under the laws of the United States or of any State thereof in the manner hereinafter specified, and five million shares shall be subscribed and paid for by individuals, firms, companies, or corporations other than banks and trust companies hereinbefore mentioned in the manner hereinafter specified. SEC. 2. That the subscribers to the said Foreign Finance Corporation, their successors and assigns, shall be, and are hereby, created a corporation and body politic by the name, style, and title of 'cThe Foreign Finance Corporation" (herein called "the corporation"), and shall have succession for a period of twenty years. SEC. 3. That the Secretary of Commerce is authorized and hereby directed, under rules and regulations to be prescribed by him, to receive, approve, and allot subscriptions for the capital stock-of the corporation from banks, trust companies, individuals, firms, companies, and other corporations in the aggregate sums heretofore specified. The War Finance Corporation, through its board of directors, is hereby directed and instructed to subscribe to two million five hundred thousand shares of the Foreign I Finance Corporation. SEC. 4. That the principal office of the corporation shall be located in New York City, New York, but the corporation shall be authorized to establish branches or agencies in any city or cities oi the United States or any foreign country, under rules and regulations to be prescribed by the board of directors. SEC. 5. That the management of the corporation shall be vested in a board of directors, consisting of nine members, three of whom shall be annually appointed by the Secretary of Commerce, three of whom shall be elected annually by the stockholding banks and trust companies, and three of whom shall be elected by the stockholding individuals, firms, companies, or corporations other than banks or trust companies. SEC. 6. That the corporation shall be empowered and authorized to adopt, alter, and use a corporate seal; to make contracts; to purchase or lease and hold or dispose of such real estate as may be necessary for the prosecution of its business; to sue and be sued; to complain and defend in any court of competent jurisdiction, State, Federal, or foreign; to appoint by its board of directors and fix the compensation of such officers, employees, attorneys, and agents as are necessary for the transaction of the business of the corporation, to define their duties, require bonds of them, and fix the penalties thereof; and to prescribe, amend, and repeal by its board of directors by-laws regulating the manner in which its general business may be conducted and the privileges granted to it by law maybe exercised and enjoyed, and prescribing the powers and duties of its officers and agents. SEC. 7. That the corporation shall be empowered and authorized (1) to make advances upon such terms not inconsistent herewith as it may prescribe to any foreierr Govenment, with or without security, or to any bank, banking institution, orr trust Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

526 ANNUAL. REPORT OF THE FEDERAL. RESERVE BOARD. company, or other corporation organized or operating under the laws of any foreign country or to any individual or firm located in or doing business in a foreign country for the purpose of importing goods from the United States into such foreign country or into other foreign countries: Provided, however, That the corporation shall not make any advances for the purpose of directly financing individual short-term transactions which are in their nature self-liquidating; (2) (a) to buy and sell, at home or abroad, the obligations evidencing the advances made under paragraph (1) of this section, and to sell any securities pledged as collateral to such obligations, (b) to buy and sell, at home or abroad, foreign securities, whether public or private; that is, securities of any foreign Government, municipality, or political subdivision, or securities of any individual, firm., or corporation of the kind described in subparagraph (1) of this section: Provided, however, That the corporation shall not engage in the business of buying and selling notes, drafts, bills of exchange, or other short-term obligations arising out of transactions which in their nature are commercial or selfliquidating, and shall not engage in any other business or exercise any other powers except those that are expressly definecl or conferred by this act and except those that are necessarily incidental to the exercise of such express business or express powers; (3) That the corporation shall be empowered and authorized to issue and to have outstanding at any one time its bonds in an amount aggregating not more than ten times its paid-in capital, such bonds to mature not less than one year and not more than twenty years from the respective dates of issue and to bear such rate or rates of interest as the corporation may determine. Such bonds shall have a first and paramount floating charge on all the assets of the corporation which shall not at any time be mortgaged or pledged by the corporation; such bonds may be offered for sale publicly or to any individual, firm, corporation, or association at such price or T)rices as the corporation may determine; such bonds shall not be eligible for purchase or discount by any Federal Reserve Bank, and no note, draft, or bill drawn for the purpose of buying or carrying such bonds, whether or not secured by such bonds, shall be eligible for purchase or rediscount by a Federal Reserve Bank. SEC. 8. That the corporation shall not exercise any of the powers granted by this act, or perform any business except such as is incidental and necessarily preliminary to its organization, until it has been authorized by the Secretary of Commerce to commence business under the provisions of this act. The corporation shall be authorized to begin its business whenever five million shares shall have been subscribed. SEC. 9. That neither the War Finance Corporation nor any other shareholder in the corporation shall be liable beyond the amount of its subscription to the capital stock of the corporation for the payment of any bond or other obligation issued or incurred by the corporation, nor shall any such shareholder as such incur any liability in respect to any act or omission of the corporation. SEC. 10. That whoever makes or authorizes to be made any statement in writing, knowing it to be false, for the purpose of obtaining for himself or for any other person, firm, corporation, or association any advance under this title, shall be punished by a fine of not more than $10,000 or by imprisonment for not more than five year?, or both. Whoever (1) falsely makes, forges, or counterfeits any bond, coupon, or paper in imitation of or purporting to be an imitation of a bond or coupon issued by the corporation; or (2) passes, utters, or publishes, or attempts to pass, utter, or publish, any false, forged, or counterfeited bond, coupon, or paper purporting to be issued by the corporation, knowing the same to be falsely made, forged, or counterfeited; or (3) falsely alters any such bond, coupon, or paper; or (4) passes, utters, or publishes as true any falsely altered or spurious bond, coupon, or paper issued or purporting to have been issued by the corporation, knowing the same to be falsely altered or spurious, shall be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both. Whoever, being connected in any capacity with the corporation, (1) embezzles, abstracts, or willfully misapplies any moneys, funds, or credits thereof, or (2) with intent to defraud the corporation or any other company, body politic, or corporate, or any individual, or to deceive any officer of the corporation (a) makes any false entry" in any book, report, or statement of the corporation, or (b) without authority from the directors draws any order or assigns any note, bond, draft, mortgage, judgment, or decree thereof, shall be punishable by a fine of not more than $10,000 or by imprisonment for not more than five years, or both. The Secretary of the Treasury is hereby authorized to direct and use the Secret Service Division of the Treasury Department to detect, arrest, and deliver into custody of the United States marshal having jurisdiction over any person committing any of the offenses punishable under this section. 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KECOMMENDATIONS OF FEDERAL ADVISORY COUNCIL. 527 SEC. 11. The corporation shall file quarterly with the Secretary of Commerce a report of its business in such manner and form as may be directed by the Secretary of Commerce, who shall make an annual report to Congress of the operation of such corporation. SEC. 12. That the term "securities" as used in this act phall include bonds, debentures, notes, certificates of indebtedness, and other such obligations (not stocks). Recommendation.—In the opinion of the Federal Advisory Council the same general objections obtain against both Senate bills (Nos. 2582 and 2590). Sufficient governmental machinery now exists in our judgment and any further necessity should be met through private enterprise. TOPIC NO. 2.—The Board would ask for an expression of the views of the council as to the desirability of any legislation at this time looking to the retirement of the United States notes or legal tenders. (The Board itself has already gone on record against any legislation on this subject at the present time, but it has been requested to ascertain the views of the council.) Recommendation.—Concurring in the statements made, the views expressed, and the advice given on this topic in the Board's letter of August 8, 1919, addressed to Hon. George P. McLean, chairman Committee on Banking and Currency, United States Senate, we regard any legislation at this time looking to the retirement of the United States notes or legal tenders as inadvisable and unnecessary. So long as no part of the circulating medium of the country in the possession of the member banks can be counted in their legal reserve requirements, which causes them to turn over daily to the Federal Reserve banks such of it as they have not actual use for, there can not be any serious redundancy of currency in actual circulation. The daily redemption of Federal Reserve notes by the Federal Reserve Banks and the daily depositing with them of all other kinds of circulating notes not actually needed by the public or by the member banks for supplying the public keeps the money in circulation down to the actual requirements of the public in trade and commerce. TOPIC NO. 3.—The suggestion has been made that the law should be amended so as to permit Federal Reserve Banks to lend money both on call and short time, without restriction against renewal, to any person, firm, corporation, or institution, member or nonmember, on the collateral security of any of the things which the banks might acquire by purchase under the provisions of section 14 of the Federal Reserve Act, the argument of the proponents being that the banks should have a relation to the money market giving them the power to make money easy, if not plentiful, upon occasion, and thus influence rates downward; that lacking contact with the market, except through member banks, such power may not be exerted effectively without the cooperation of the member banks, and that as the law now stands, the banks may make adrances in rates effective at times when large accommodation to member banks exists or when greater accommodation is desired, and if accommodation is sought by members, by loaning freely, ma}' ease money rates, but in the at sencc of the member banks' willingness or desire to borrow or rediscount, the reserve banks' effective power is very limited. Recommendation.—In our opinion the law now furnishes ample channels through which the resources of the Federal Reserve Banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

528 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. are made available' to the public through the member banks for all legitimate purposes. We do not therefore approve the suggestion that the law should be amended so as to permit Federal Reserve Banks to lend money both on call and short time without restriction against renewal to any person, firm, corporation or institution, member or nonmember, on the collateral security of any of the things which the banks might acquire by purchase under the provisions of section 14 of the Federal Reserve Act. TOPIC NO. 4.—Section 11 (e) of the act gives the Federal Reserve Board the power to add to the number of cities classified as reserve and central reserve cities under existing law, and to reolassify existing reserve and central reserve cities or terminate their designation as such. The Board has received applications from banks in several cities for reclassification to a lower level in order that their reserve requirements may be reduced, but has taken no action, feeling that the whole subject should be given careful study in order that some principle may be deduced, if possible, to govern the classification. The suggestion has been made that legislation should be asked to provide for the fixing of reserves with reference to the character of deposits applicable to all places alike regardless of population. The Board is having tables prepared by its statistical division showing the effect upon the reserves of the various cities and of the Federal Reserve Banks of a uniform law fixing reserves on time deposits at 3 per cent on demand, individual, firm, and corporate accounts at 7, 8, and 10 per cent, respectively, and on balances due to other banks at 13, 14, and 15 per cent, respectively. It will not be practicable to distribute these tables in advance of the meeting of the council, but the Board would like to have an opportunity of presenting them to the council for the consideration of its members at the time of the meeting. Recommendation.—It is the opinion of the council that the reserve requirements of all member banks should be based on the character of deposits and not on their classification as central reserve cities and reserve cities and further the council recommends that the Federal Reserve Board endeavor to secure such legislation as may be necessary to authorize them to make such reclassification. TOPIC NO. 5.—Senate bill No. 170. [S. 170. 66th Cong., 1st Sess. In the House of Representatives, Aug. 5, 1919.] Referred to the Committee on Banking and Currency. An Act To amend section 25 of the act of December 23,1913, known as the Federal Reserve Act, as amended by the act of September 7,1916. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 25 of the act approved December 23, 1913, known as the Federal Reserve Act, as amended by the act of September 7, 1916, be amended by adding a subsection (a) to read as follows: "SEC. 25a. That any member bank located in a city or incorporated town of more than five hundred thousand inhabitants and possessing a capital and surplus of $1,000,000 or more may, under such rules and regulations as the Federal Reserve Board may prescribe, establish branches, not to exceed ten in number, within the corporate limits of the city or town in which it is located: Provided, That no such branch shall be established in any State in which neither State banks nor trust companies may lawfully establish branches." Passed the Senate August 2, 1919. Attest: GEORGE A. SANDERSON, Secretary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECOMMENDATIONS OF FEDEKAL ADVISORY COUNCIL. 529 Recommendation.—We urge the Federal Reserve Board to use every effort to secure the passage of Senate bill No. 170 in the interest of sound banking and the granting of equal banking facilities to all people in the same business community. THREE AMENDMENTS PROPOSED BY THE ADMINISTRATIVE COMMITTEE OF THE AMERICAN BANKERS ASSOCIATION. > TOPIC NO. 6.—(a) Proposed amendment to section 9 of the Federal Reserve Act authorizing the Federal Reserve Board to admit to membership incorporated savings banks with insufficient capital stock to entitle them to become member banks under existing law, provided the combined capital and surplus of tne incorporated savings banks is equal to the amount of capital stock required of national banks in the places in which such incorporated savings banks are located. (b) Proposed amendment to section 19 of the Federal Reserve Act adding at the end of subdivision C thereof a new paragraph to read as follows: "Two-thirds of the three per centum of time deposits required to be maintained as reserve by subdivision A, B, and C hereof may consist, in the case of savings accounts only, as denned by the Federal Reserve Board, of bonds of the United States issued since April twenty-fourth, nineteen hundred and seventeen, or certificates of indebtedness of the United States deposited with the Federal Reserve Bank. (c) Proposed amendment to section 5154, United States 'Revised Statutes, adding thereto the following: ' 'Any savings bank incorporated by special law of any State or of the United States, or organized under the general laws of any State or of the United States, which has been converted into a national banking association according to the provisions herein, is permitted to maintain a separate savings department and to continue to discharge the same functions as it exercised before the conversion, such savings department to be operated under rules and regulations to be promulgated by the Federal Reserve Board." Recommendation.—The council is opposed to all three of the above proposed amendments. TOPIC NO. 7.—Differential discount rates on loans secured by United States Government obligations. Recommendation.—In view of the uncertainty existing as t> the continuance of the policy of a differential rate of discount in favor of loans secured by the United States Government obligations, the council recommends to the Federal Reserve Board that existing rates.on loans of this character be maintained during the balance of this year. TOPIC NO. 8.—Check collections. Recommendation.—Referring to Governor Harding's remarks respecting a proposed order of the Federal Reserve Board for a uniform plan for handling of checks on member banks, the council respectfully requests that the Federal Reserve Board mail to each member of the council such information regarding the plan as may be available, and, further, that the Federal Reserve Board take no definite action on this subject, pending the next meeting of the council with the Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

530 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. The following members of the Federal Advisory Council were present at this meeting: Messrs. L. L. Rue, vice president; D. G. Wing, A. B. Hepburn, W. S. Rowe, J. G. Brown, Charles A. Lyerly, F. 6. Watts, C. T. Jaffray, E. F. Swinney, E. P. Wilmot, A. L. Mills, and Merritt H. Grim, secretary. Recommendations of the Federal Advisory Council to the Federal Reserve Board November 17, 1919. TOPIC NO. 1.—Policy in regard to discount rates of the Federal Reserve Banks for the remainder of the year 1919. Recommendation.—It is desirable that the expansion of credit through the discount facilities of the Federal Reserve Banks should be held in check. The council therefore approves the recent advance in rates made by the Federal Reserve Banks. The Federal Reserve Banks should be instructed by the Federal Reserve Board to use all their influence and authority to prevent an excessive use of credits by member banks. Increases in the discount rates would, in the opinion of the council, tend to correct the present situation, but as such action might seriously affect present Government bond values and the successful refunding of the outstanding certificates of indebtedness, and as the Treasury officials are firmly of the opinion that at an early date the needs of the Treasury will cease to be an important factor in the money market, the council recommends that no further change be made in discount rates at present. TOPIC NO. 2.—Suggested changes in the basis for computing the reserves of member banks. Recommendation.—The council member for New York has furnished the council with a copy of a report on this subject made by a special committee of the New York Clearing House Association, a copy of which is herewith submitted for the information of the Federal Reserve Board. The council agrees with this committee "that the present time is not opportune for the inaugurating of a revision of reserves in any manner that would add another item of unrest to the present disturbed situation throughout the country, and would recommend that it would be much better to await a period when bankers, bank clerks, and the public are in a more tranquil state of mind." NOVEMBER 8, 1919, Mr. JAMES STILLMAN, Chairman, Nevj York Clearing House Committee, National City Bank, New York City. DEAR MR. STILLMAN: Acting under instructions of last year's clearing house committee, the undersigned have considered the advisability of changes in the present system of figuring reserves of the bank members of the Federal Reserve System. The present method is based upon the classification of the national bank system as applied to central reserve cities, reserve cities, and country banks—and we agree that this method could well be superseded by a new classification based on two divisions—the first to apply only to member banks in cities wherein there is located either a Federal Reserve Bank or a branch of a Federal Reserve Bank, and, the second, to the rest of the country. As to the further question of the percentage of reserves, should the classification be changed, as above—we feel that it would be unwise to reduce the total amount of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BECOMMENDATIONS OF FEDERAL ADVISORY COUNCIL. 531 reserves of all banks with the Federal Reserve Banks, but in order to permit of an intensive study of percentage changes—Mr. Hepburn has suggested that there be prepared a tabulation which would show for all cities of the United States of 15,000 population and over the following figures: (1) Capital, surplus and undivided profits., (2) Deposits. (3) Average daily exchanges— the figures to be brought into two totals—first, applying to banks wherein there is located a Federal Reserve Bank or a branch of a Federal Reserve Bank, and, second, totals for the rest of the country. These figures, if desired by the clearing house committee, we believe, could perhaps be best secured by the clearing house examiner, and could supplement certain figures prepared for the advisory committee to the Federal Reserve Board, copy attached herewith, which shows amounts of reserves which national banks are required to carry with Federal Reserve Banks under the present method, and reserves which they would be required to carry under certain proposed amendments. We feel very strongly, however, that the present time is not opportune for the inaugurating of a revision of reserves in any manner that would add another item of unrest to the present disturbed situation throughout the country, and would recommend that it would be much better to await a period when bankers, bank clerks, and the public are in a more tranquil state of mind. Since the inauguration of the Federal Reserve System, we have gone along very well under the present method—-which it seems could well continue for a while longer without change. The more immediate situation, it seems to us, however, is the desirability for the accumulation of a higher percentage of reserves for the Federal Reserve Banks. Yours, sincerely, LEWIS E. PIERSON. CHARLES II. SABIN. WALTER E. FREW. TOPIC NO. 3.—Federal Reserve Board's rulings, as they appear in the Federal Reserve Bulletin of October 1, 1919, in regard to the computation of reserves with reference to— 1. In figuring reciprocal balances should the dollar balances due to foreign banks be offset by foreign currency balances due from same banks ? 2. For the purpose of figuring reserve requirements, should foreign currency balances due from foreign banks be used as a deduction from "due to" bank balances the same as due from banks in this country ? Recommendation.—The banks principally affected by these rulings are those located in the central reserve cities and the reserve cities, especially the former. Banks in these cities are now required to carry reserves of 13 per cent and 10 per cent, respectively, against their demand deposits, while banks in other localities are only required to carry 7 per cent against such deposits. The effect of the rulings is therefore to still further penalize the banks located in central reserve cities and reserve cities in regard to the amount of reserves they are required to carry. Funds on deposit with a foreign correspondent may be converted into reserve funds through sales of checks or of cable transfers just as quickly as the funds on deposit with a domestic bank may be realized upon through drafts or telegraphic transfers. Foreign banks should be encouraged to keep balances with their correspondent banks in this country and if banks doing a foreign exchange business arc not allowed to deduct balances due them by foreign banks from the amount of their balances "due to banks," the volume of their foreign exchange business might have to be undesirably and unnecessarily curtailed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

532 ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. We hand you herewith legal opinions of the following bank attorneys: Messrs. Shearman & Sterling, and White and Case, of New York; and Messrs. Mayer, Meyer, Austrian & Platt, and Mr. Edward Eagle Brown, of Chicago. These opinions being at variance with your rulings, we would respectfully recommend that you give the subject your further consideration. The following members of the Federal Advisory Council were present at this meeting: Messrs. James B. Forgan, president; L. L. Rue, vice president; D. G. Wing, A. B. Hepburn, W. S. Rowe, J. G. Brown, Charles A. Lyerly, F. O. Watts, C. T. Jaffray, E. P. Wilmot, and Merritt H. Grim, secretary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DESCRIPTION OF FEDERAL RESERVE DISTRICTS. Bolow are descriptions of the 12 Federal Reserve districts, accompanied by estimates of the population of each district recently furnished by the Bureau of the Census as of December 31, 1919.; A map showing outline of the districts is also appended. DISTRICT NO. 1—BOSTON (7,191,716). Connecticut (except Fairfield County) (1,012,197). Maine (789,467). Massachusetts (3,918,015). New Hampshire (449,236). Rhode Island (654,740). Vermont (368,061) DISTRICT NO. 2—NEW YORK (13,730,006). Connecticut (county of Fairfield) (305,414). New Jersey (counties of Monmouth, Middlesex, Hunterdon, Somerset, Union, Essex, Passaic. Hudson, Bergen, Morris. Sussex, and Warren) (2,497,388). New York (10,927,204). DISTRICT NO. 3—PHILADELPHIA (6,865,314). Delaware (219,613). New Jersey (except counties enumerated under District No. 2) (682,247). Pennsylvania (eastern part) (5,963,454). Counties: Adams. Chester. Huntingdon. Monroe. Snyder. Bedford. Clearfield. Juniata. Montgomery. Sullivan. Berks. Clinton. Lackawanna. Mont our. Susquehanna. Blair. Columbia. Lancaster. Northampton. Tioga. Bradford. Cumberland. Lebanon. N orthuinberland Union. Bucks. Dauphin. Lehigh. Ferry. Wayne. Cambria. Delaware. Luzerne. Philadelphia. Wyoming. Cameron. Elk. Lycoming. Pike. York. Carbon. Franklin. McKean. Potter. Center. Fulton. Mifflin. Schuylkill. DISTRICT NO. 4—CLEVELAND (9,643,255). Kentucky (eastern part) (1,061,900). Counties: Bath. Estill. Kent on. Magoffin. Pulaski. Bell. Fayette. Knott. Martin. Robertson. Boone. Fleming. Knox. Mason. Rockcastle. Bourbon. Floyd. Laurel. Menifee. Rowan. Boyd. Garrard. Lawrence Montgomery. Scott. Bracken. Grant. Lee. Morgan. Whitley. Breathitt. Greenup. Leslie. Nicholas, Wolfe, Campbell. Harlan. Letcher. Owsley. Woodford. Carter. Harrison. Lewis. Pendleton. Clark. Jackson. Lincoln. Perry. Clay. Jessamine. McCreary Pike. Elliott. Johnson. Madison. Powell. Ohio (5,366,4.07). Pennsylvania (western part) (3,041,653). Counties: Allegheny. Clarion. Forest. Lawrence. Warren. Armstrong. Crawford. Greene. Mercer. Washington. Beaver. Erie. Indiana. Somerset. Westmoreland. Butler. Fayette. Jefferson. V en an go. West Virginia (northern part) (173,295). Counties: Brooke. Marshall. Ohio. Tyler. WetzeJ. Hancock. 533 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

534 ANNUAL, BEPOBT OF THE FEDERAL RESERVE BOARD. DISTRICT NO. 5—RICHMOND (9,610,524). District of Columbia (437,414). Maryland (1,400,838). North Carolina (2,513,491). South Carolina (1,687,528). Virginia (2,265,538). West Virginia (all counties except Brooke, Hancock, Marshall, Ohio, Tyler, and Wetzel) (1,305,715). DISTRICT NO. 6—ATLANTA (10,462,775). Alabama (2,442,267). Florida (972,915). Georgia (2,995,281). Louisiana (southern part) (1,:367,850). Parishes: Acadia. East Baton Rouge. Lafourche. St. Helena. Terrebonne. Allen. East Feliciana. Livingston. St. James. Vermilion. Ascension. Evangeline. Orleans. St. John the Baptist. Vernqn. Assumption. Iberia. Plaquemines. St. Landry. Washington. Avovelles. Iberville. PointeCoupee. St. Martin. West Baton Rouge. Beauregard. Jefferson. Rapides. St. Mary. West Feliciana. Calcasieu. Jefferson Davis. St. Bernard. St. Tammany. Cameron. Lafayette. St. Charles. Tangipahoa. Mississippi (southern part) (1,032,417). Countiei Adjms. Greene. Jones. Neslioba. Smith. A?"nite. Hancock_ Kemper. Newton. Stone. Claiborne. Harrison. Lamar. Pearl River. Walthall. Clarke, Hinds. Lauderdale. Perry. Warren. Copiah. Issaquenti, Lawrence, Pike. Wayne. Covington. Jacksen. Leake. Rankin. Wilkinson. Forrest. Jasper. Lincoln. Scott. Yazoo. Franklin. Jefferson. Madison, Sharkey. George. Jert'erson Davis. Marion. Simpson. Tennessee i(eastern part) (1,652,045). Counties: Anderson. Dekalb. Jackson. Monroe. Sevier. Bedford. Dickson. James. Montgomery. Smith. Bledsoe. ^entress. JerTerson. Moore. Stewart. Blount. Franklin, Johnson. Morgan. Sullivan. Bradley. Giles. Knox. Overton. Sumner. Campbell. Grainper, Lawrence. Ferry. Trousdale. Cannon. Greene. Lewis. Piekett. Unicoi. Carter. Grand y. Lincoln. Polk. Union. Cheatham, Hamblen, Loudon. Putnam. Van Buren. Claiborne, Hamilton, Me Minn. Rhea. Warren. Clav. • Hancock. Macon. Roane. Washington, Cocke. Hawkins. Marion. Robertson. "Wayne. Coffee. Hick man. Marshall. Rutherford. White. Cumberland. Houston. Maury. Scott. Williamson, Davidson. Humphreys. Meigs. Sequatchie. Wilson. DISTRICT NO. 7—CHICAGO (14,504,447). Illinois (northern part) (5,155,927). Counties: Boone. Douglas. Kankakee. Marshall. Shelby. Bureau. Dupage. Kendall. Mason. Stark. Carroll. Edgar. Knox. Menard. Stephenson, Cass. Ford. 1 ake. Mercer. Tazewell. Champaign. Fulton. La Salle. Moultrie. Vermilion. Christian. G-rundy. Tee. Ogle. Warren. Clark. Hancock. Livingston. Peoria. Whiteside. Coles. Henderson.. Jo?ar. Piatt. Will. Cook. Henrv. McDonough. Putnam. Winnebago. Cumberland. Iroquois. McHenry. Rock Island Woodford. Dekalb. Jo Daviess. McLean. Sangamon. Dewitt. Kane. Macon. Schuyler. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

535 DESCRIPTION OF FEDERAL RESERVE DISTRICTS. Indiana (northern part) (2,272,950). Counties: Adams. Delaware. Jay. Newton. Steuben. Allen. Elkhart. Jennings. Noble. Tippecanoe. Bartholomew. Fayette. Johnson. Ohio. Tipton. Benton. Fountain. Kosciusko. Owen. Union. Blackford. Franklin. Lagrange. Parke. Vermilion. Boone. Fulton. Lake. Porter. Vigo. Brown. Grant. Laporte. Pulaski. Wabash. Carroll. Hamilton. Madison. Putnam. Warren. Cass. Hancock. Marion. Randolph. Wayne. Clay. Hendricks. Marshall. Ripley. Wells. Clinton. Henry. Miami. Rush. White Dearborn. Howard. Monroe. St. Joseph. Whitley. Decatur. Huntington Montgomery. Shelby. Dekalb. Jasper. Morgan. Starke. Iowa (2,217,812). Michigan (southern part) (2,803,990). Counties: Alcona. Claire. Isabella. Midland. Presque Isle Allegan. Clinton. Jackson. Missaukee. Roscommon Alpena. Crawford. Kalamazoo. Monroe. Saginaw. Antrim. Eaton. Kalkaska. Montcalm. St. Clair. Arenac. Emmet. Kent. Montmorency. St. Joseph. Barry. Genesee. Lake. Muskegon. Sanilac. Bay. Glad win. Lapeer. Newaygo. Shiawassee. Benzie. Grand Traverse. Leelanau. Oakland. Tuscola. Berrien. Gratiot. Lenawee. Oceana. Van Buren. Branch. Hillsdale. Livingston. Ogemaw. Washtenaw. Calhoun. Huron. Macomb. Osceola. Wayne. Cass. Ingham. Manistee. Oscoda. Wexford. Charlevoix.. Ionia. Mason. Otsego. Cheboygan. Iosco. Mecosta. Ottawa. Wisconsin (southern part) (2,053,768). CCounties Adams. Fond du Lac. Kewaunee. Oconto. Sheboygan. Brown. Grant. Lafayette. Outagamie. Vernoii. Calumet. Green. Langlade. Ozaukee. Walworth. Clark. Green Lake. Manitowoc. Portage. Washington Columbia. low a. Marathon. Racine. Waukesha. Crawford. Jackson. Maria ette. Richland. Waupaca. Dane. Jefferson. Marquette. Rock. Waushara. Dodge. Juneau. Milwaukee. Sauk. Winnebago. Door. Kenosha. Monroe. Shawano. Wood. DISTRICT NO. 8—ST. LOUIS (9,478,863). Arkansas (1,832; Illinois (southern part) (1,285,914). Counties: Adams. Emngham. Jefferson. Montgomery. Saline. Alexander. Fayette. Jersey. Morgan. . Scott. Bond. Franklin. Johnson. Perry. Union. Brown. Gallatin. Lawrence. Pike. Wabash. Calhoun. Greene. Macoupin. Pope. Washington. Clay. Hamilton. Madison. Pulaski. Wayne. Clinton. Hardin. Marion. Randolph. White. Crawford. Jackson. Massac. Richland. Williamson. Edwards. Jasper. Monroe. St. Clair. Indiana (southern part) (609,229). Counties: Clark. Gibson. Knox. Pike. Switzerland. Crawford. Greene. Lawrence. Posev. Vanderburg. Daviess. Harrison. Martin. Scott. Warrick. Dubois. Jackson. Orange. Sullivan. Washington, Floyd. Jefferson. Perry. Spencer. Kentucky (western part) (1,368,328). Counties: Adair. Casey. Hancock. McLean. Shelby. Allen. Christian. Hardin. Marion. Simpson. Anderson. Clinton. Hart. Marshall. Spencer. Ballard. Crittenden. Henderson. Meade. Taylor. Barren. CumberlandI. Henry. Mercer. Todd. Boyle. Daviess. Hickman. Metcalfe. Trigg. Breckenridge. Edmonson. Hopkins. Monroe. Trimble. Bullitt. Franklin. Jefferson. Muhlenberg Union. Butler. Fulton. Larue. Nelson. Warren. Caldwell. Gallatin. Livingston. Ohio. Washington. Calloway. Graves. Logan. Oldham. Wayne. Carlisle. Grayson. Lyon. Owen. Webster. Carroll. Greene. McCracken. Russell. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

536 ANNUAL REPORT OF THE FEDERAL, RESERVE BOARD. Mississippi (northern part) (1,00)88,,339911)).. Counties: Alcorn. Clay. Lee. Panola. Tishomingo Attala. Coahoma. Leflore. Pontotoc. Tunica. Benton. Do Soto. Lowndes. Prentiss. Union. Bolivar. Grenada. Marshall. Quitman. Washington Calhoun. Holmes. Monroe. Sunflower. Webster. Carroll. Humphreys. Montgomery. Tallahatchie. Winston. Chickasaw. Itawamba. Noxubee. Tate. Yalobusha. Choctaw. Lafayette. Oktibbeha. Tippah. Missouri (eastern part) (2,681,957). Counties: All except those included in district No. 10. Tennessee (western part) (694,146). Counties: Benton. Dyer. Hardin. Lake. Obi on. Carroll. Fayette. Hay wood. Lauderdale. Shelby. Chester. Gibson. Henderson. McNairy. Tipton. Crockett. Hardeman. Henry. Madison. Weakley Decatur. DISTRICT NO. 9—MINNEAPOLIS (5,424,070). Michigan (northern part) (388,805). Counties: Alger. Delta. Houghton. Luce. Menominee. Baraga. Dickinson. Iron. Mackinac. Ontonagon. Chippewa. Gogebic. Keweenaw. Marquette. Schoolcraft. Minnesota (2,394,548). Montana (506,537). North Dakota (830,614). South Dakota (763,127). "Wisconsin (northern part) (540,439). Counties: Ashland. Douglas. La Crosse. Price. Vilas. Barron. Dunn. Lincoln. Rusk. Washburn. Bayfield. Eau Claire. Oneida. St. Croix. Buffalo. Florence. Pepin. Sawyer. Burnett. Forest. Pierce. Taylor. Chippewa. Iron. Polk. Trempealeau. DISTRICT NO. 10—KANSAS CITY (7,802,112). Colorado (1,053,973). Kansas (1,907,632). Missouri (western part) (794,895). Counties: Andrew. Buchanan Dekalb. Jasper. Platte. Atchison. Cass. Gentry. McDonald. Vernon. Barton. Clay. Holt. Newton. Worth. Bates. Clinton. Jackson. Nodaway. Nebraska (1,316,003). New Mexico (northern part) (211,935). Counties: Colfax. Mora. Sandoval. San Miguel. Taos. McKinley. Rio Arriba. San Juan. Santa Fe. Union. Oklahoma (all except southeastern part) (2,319,129). Countic Adair. Creek. Jackson. Murray. Roger Mills. Alfalfa. Custer. Jeiferson. Muskogee. Rogers. Bsaver. Delaware. Kay. Noble. Seminole. Backham. Dewey. Kingfisher. Nowata. . Sequoyah. Blame. Ellis. Kiowa. Okfuskee. Stephens. Caddo. Garfield. Latimer. Oklahoma. Texas. Canadian. Garvin. Le Flore. Okmulgee. Tillman. Carter. Grady. Lincoln. Osage. Tulsa. Cherokee. Grant. Logan. Ottawa. Wagoner. Cimarron. Greer. Love. Pawnee. Washington. Cleveland. Harmon. McClain. Pavne. Washita. Comanehe. Harper. Mclntosh. Pittsburg. Woods. Cotton. Haskell. Major. Pontotoc. Woodward. Craig. Hughes. Mayes. Pottawatomie Wyoming (198,495). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DESCRIPTION OF FEDERAL RESERVE DISTRICTS. 537 DISTRICT NO. 11—DALLAS (5,856,170). Arizona (southeastern part) (132,153). Counties: Coohise. Pima. Graham. Santa Cruz. Greenlee. Louisiana (northern part) (553,664). Parishes: Bienyille. Concordia. La Salle. Red River. West Carroll. Bossier. De Soto. Lincoln. Riehland. Winn. Caddo. East Carroll. Madison. Sabine. Caldwell. Franklin. Morehouse. Tensas. Catahoula. Grant. Natchitoches. Union. Claiborne. Jackson. Ouachita. Webster. New Mexico (southern part) (245,129). Counties: Bernalillo. Dona Ana. Hidalgo. Otero. Socorro. Chaves. Eddy. Lea. Quay. Torrence. Curry. Grant. Lincoln. Roosevelt. Valencia. De Baca. Guadalupe. Luna. Sierra. Oklahoma (southeastern part) (190,161). Counties: Atoka. Choctaw. Johnston. Marshall. Pushmataha. Bryan. Coal. McCurtain. Texas (4,730,063.) DISTRICT NO. 12—SAN FRANCISCO (7,165,916). Arizona (northwestern part) (152,250). Counties: Apache. Gila. Mohaye. Pinal. Yuma. Coconino. Maricopa. Navajo. Yavapai. California (3,254,982). Idaho (486,651). Nevada (120,748). Oregon (927,619). Utah (468,321).' Washington (1,755,345). RECAPITULATION. Estimated population Dec. 81, 1918. Federal Reserve district: No. 1—Boston 7, m, 716 No. 2—New York 13, 730, 006 No. 3—Philadelphia 6, 865, 314 No. 4— Cleveland 9, 643, 255 No. 5—Richmond 9, 610, 524 No. 6—Atlanta 10,462,775 No. 7—Chicago 14.504,447 No. 8—St. Louis 9,478, 863 No. 9—Minneapolis 5,424, 070 No. 10—Kansas City 7,802,112 No. 11—Dallas ". 5,856,170 No. 12—San Francisco 7,165, 916 Total 107,735,168 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART I—REPORT OF THE FEDERAL RESERVE BOARD. Page. Page. Abstract of condition reports of State tank Bankers' acceptances. (See Acceptances.) and trust company members 2.59 Bills purchased. {See Acceptances.) Acceptances: Bolshevik government, exchange transactions Amounts discounted by Federal Reserve with, restrictions in 49, c() Banks 172,206,208 Bonds, United States. (See United States Amounts purchased by Federal Reserve bonds.) Banks 6,21,181-184,206,208 Branches, foreign, of American banks 53 Amounts purchased from other Federal Branches, foreign, of national banks 260 Reserve Banks 5-7,185-199 Branches of Federal Reserve Banks: Banks granted authority to accept up to Clearing and collection operations of 39- 100 per cent of capital and surplus... 269-273 Dates when opened for business 39 Bankers'— Directors and managers of. (See Fed- Discount rates on 11 eral Reserve Banks, branches of.) Open-market purchases. . 6,21,183,206,208 Established during year 38 Earnings, amounts and annual rate on. 31,136 Operations of, during year 39 Growth in use of 6,21 Branches of national banks: Holdings by Federal Reserve Banks. 12,129,130 Foreign 260 Market for, development of 6,21 Recommendations for amendment to act Maturities of 129,184 relative to 64 Open-market purchases of .6,21,181-184,206,208 Broderick, J. A., resignation as secretary of Purchases and sales between Federal Re- Federal Reserve Board 62 serve Banks 5-7,185-199 Building for Federal Reserve Board recom- Rates, discount on 11,23 mended 63 Rates of earnings on 31,136 Buildings for Federal Reserve Banks 37 Renewal acceptances 22 Architect employed to supervise 38 Trade- Bullion, gold and silver, export of 50-53 Discounted by each Federal Reserve Capital: Bank 172,206,208 Federal Reserve Banks 118,147 Discount rates on 11 State bank and trust company mem- Holdings by Federal Reserve Banks. 130,183 bers 239,259 Purchases of, by Federal Reserve Certificates of indebtedness. (See Treasury Banks 181,206,208 certificates of indebtedness.) Adelson, L. C, resignation of, as assistant Chapman, W. T., appointed secretary of Fedsecretary of Federal Reserve Board 62 eral Reserve Board 62 Administrator, executor, etc., powers granted Charts: to national banks. (See Fiduciary powers.) Movement of earning assets of Federal Advisory Council, Federal: Reserve Banks 120 Meetings of 56 Net deposit liabilities, Federal Reserve Members of, list of 288 note circulation, cash reserve, and re- Recommendations of, to Federal Reserve serve ratio of Federal Reserve Banks. 124 Board 511 Required and excess reserves 125 Agricultural paper: Average daily holdings of earning assets, Amounts discounted 162 by Federal Reserve Banks during 1918 Discount rates on 10 and 1919 134,135 Amendments to Federal Reserve Act. (See Gold settlement fund 216,217 Federal Reserve Act.) Number of banks on par list and number Amendments to Revised Statutes. (See Re- and amount of items handled by Fedvised Statutes.) eral Reserve Banks, 1917-1919 226 Architect employed to supervise construction Check clearing and collection: of Federal Reserve Bank buildings 38 Average number and amount of items Assets and liabilities of Federal Reserve handled daily 42,224 Banks. (See Resources and liabilities.) Branch banks, number and amount of Bank notes: items handled daily by 39 Engraved signatures on 59,: Efforts to establish a universal par remit- Federal Reserve. (See Federal Reserve tance system 40 bank notes.) Growth of the system 40,224 178983—20 35 539 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

540 INDEX TO PART I. iheck clearing and collection—Continued. Page. I Discount operations of Federal Reserve Number of banks not remitting at par... 40,44 i Banks—Continued. Page. Number of banks remitting at par... 40,44,227 j Rate charged on paper discounted 176 Operation of the system during year. 40,44,222 I Rate charged on paper purchased 177 Opposition to system in some localities.. 40 ! Rates of earnings 31,136,138 Attitude of Board regarding 41 ! Rediscounts and sales between Federal 1 'ar list, nonmember banks on 40,44,227 ; Reserve Banks 5-7,1*5-199 Clayton Anti-trust Act, applications to serve j Total bills discounted, distributed by as director under Kern amendment to 57 ! National and State bank members 174 Clearing-house bank debits 66 j War paper 12,17,131,202-209 Coin, bullion, and currency, licenses granted j Discount policy and credit control 3,67-73 by Board for export of 51 jDiscount rates: Collateral notes discounted for member I Acceptances 11,23 banks 168,170 ! Agricultural and live-stock paper 19 Commercial paper: Average rate charged on paper discounted Amount discounted 168 , by Federal Reserve Banks 176 Rediscounts and sales between Federal ' Average rate charged on paper purchased Reserve Banks iS5 by Federal Reserve Banks 177 (See also Discount operations.) Changes in, during the year 8-11 Condition reports: ; Discussion of 3-5,70 Federal Reserve Banks 12,112,139 \ In force during period from November 16, State bank and trust company ; 1914, to December 31, 1919 76-79 members 259 j Paper secured by war obligations 8-9 Counties in Federal Reserve districts 523-537 i Districts, Federal Reserve. (See Federal Credit expansion, discussion of 65-73 ! Reserve districts.) Currency: Dividends of Federal Reserve Banks 35,37,229 licenses granted by Board for export of. 51 j Dollar exchange 21,48 Receipts and shipments of each Federal Earning assets of Federal Reserve Banks: Reserve Bank 108 Average daily holdings, 1918 and 1919 133 Receipts and shipments to member and Average balance of each class, also nonmember banks 110 amount and annual rate of earnings. 136-138 (See also Federal Reserve bank notes; Chart showing movement of^ during year. 120 Federal Reserve notes.) Comparison between opening and closing Customers' paper discounted during year 168 of the year 33 Debits to individual account in clearing- Earnings of Federal Reserve Banks: house centers 66 Acceptances, amounts and annual rate.. 31,136 Depositaries designated by Secretary of Amounts and annual rate of, on each Treasury 27 , class of earning assets 136,138 Deposits: j Annual rate on total investments 138 Government, holdings of 18,27,118 Discounts, amounts and annual rate 31,136 Net, holdings of 13,18,121 ! Dividends - 35,37,229 Directors of Federal Reserve Banks and Franchise tax, reserve set aside for 37,23© branches 282-288 •! Large earnings due to conditions growing Directory of Federal Reserve Board and ! out of the war 36 Federal Reserve Banks 282 Municipal warrants 136 Discount operations of Federal Reserve Rates of earnings from investments. 31,136,138 Banks: Surplus fund, amount carried to 36,37,230 Acceptances discounted 172,206,208 j Amendment to Federal Reserve Act Agricultural paper 162 ' regarding 58 Bills discounted, secured by war obliga- United States securities, amounts and tions 205,208 annual rate 136 Customers' paper discounted during Earnings and expenses of the Federal Reserve Banks 34-37,229-235 year 168 Edge Act 55,60,290 Collateral notes discounted during year. 168,170 Elliott, M C, resignation as general counsel Holdings of discounted bills. 12-16,126-128,133 of Federal Reserve Board. 62 Live stock paper 162 Emerson, R. G., appointed assistant secre- Maturities- Acceptances 129,184 tary of Federal Reserve Board 62 Paper discounted 157-164,178 Employees: Paper held 114,128 Federal Reserve Banks 34,274-277 Paper purchased 179 Federal Reserve Board 63,277-279 Member banks— Examiners, national-bank 279-281 Amount discounted for 157,166 Executor, administrator, etc., powers granted Number accommodated during to national banks. (See Fiduciary powers.) 1919 166,180 Exhibits: Paper discounted and held during 1919.. 12-16, A—Discount rates 76-94 126-128,133,168 B—Federal Reserve notes 80-111 Paper secured by Government war obliga- | C—Statements of condition of Federal Digitized for FRAtiSonEsR 168,206,208 I Reserve Banks 112 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART I. 541 Exhibits—Continued. Federal Reserve Banks: Page. D—Investment operations of the Federal Branches of 38 Reserve Banks 157 Directors and managers of— E—Gold settlement fund 212 Baltimore - 284 F—Operation of the Federal Reserve Birmingham 284 clearing system 222 Buffalo 282 G—Earnings and expenses of the Federal Cincinnati 283 Reserve Banks 229 Denver 286 H—Receipts and disbursements of the Detroit 285 Federal Reserve Board 236 El Paso 287 I—State banks and trust companies ad- Houston 287 mitted to membership 239 Jacksonville 284 J—Foreign branches authorized 260 Little Rock 286 K—Fiduciary powers granted to national Los Angeles 288 banks 260 Louisville 285 L—Banks granted authority to accept up Memphis 286 to 100 per cent of capital and surplus 269 Nashville 285 M—Personnel and salaries— New Orleans 284 Federal Reserve Banks 274 Omaha - - 287 Federal Reserve Board 277 Pittsburgh 283 National bank examiners 279 Portland 287 N—Directory of Federal Reserve Board Salt Lake City 288 and Federal Reserve Banks 282 Savannah agency 285 O—Federal Advisory Council 288 Seattle 288 P—Amendments to the Federal Reserve Spokane 288 Act 289 Buildings for 37 Expenses: Cooperation with Treasury in Govern- Federal Reserve Banks 34-37,229-235 ment financing 2,69 Federal Reserve Board 63,236-238 Directors and officers 282-288 Export of coin, bullion, and currency, licenses Dividends of 35,37,229 granted by Board 51 Earning assets of. (See Earning assets.) Exports. (See Imports and exports.) Earnings and expenses of 34-37,229-235 Federal Advisory Council: Employees, number and salaries 35,274 Meetings of 56 Fiscal agency operations 12,25-28,69,233 Members of, list of 288 Governors of— Recommendations of. (See Index to Listof 282-288 Part III, page 551.) Salaries of 274-277 Federal Reserve Act, amendments to: Officers and directors of 282-288 Recommended by Board- Officers and employees, number and Branches of national banks 64 salaries 35,274-277 Rediscountmg by Federal Reserve Premises 37 Banks 71 Profit and loss account 234 Section 7—Net earnings of the Federal Rediscount operations between 5-7,185-199 Reserve Banks paid into surplus fund. 58,289 Resources and liabilities 12-16,112-123 Section 10—Eligibilty of member of Fed- In detail, December 31,1919. 139-156 eral Reserve Board to hold office, etc., Federal Reserve Board: in a member bank 59,289 Adelson, L. C, resignation of, as assist- Section 11—Broadening discount powers ant secretary t>2 of Federal Reserve Banks 59,289 Amendments to act recommended by- Section 25 (Edge Act)—Federal incorpor- Branches of national banks 64 ations of institutions engaging in foreign Rediscoimting by Federal Reserve banking 60,290 Banks 71 Section 25—Investment by national bank Assessments for expenses of 63,236 in stock of corporation engaged in Broderick, J. A., resignation as secretary. 62 foreign banking 59,290 Building for quarters recommended 63 Federal Reserve agents: Chapman, W. T., appointed secretary... 62 List of 282-288 Directory of 282 Reports of 299-508 Discount policy of 3,67-73 Salaries of 274-277 Division of foreign exchange, work com- Federal Reserve bank notes: pleted 62 Amount issued under provisions of the Elliott, M. C., resignation as general coun- Pittman Act 46 sel 62 Certificates of indebtedness purchased by Emerson, R. G., appointed assistant sec- Federal Reserve Banks under Pittman retary 62 Act as security for 204 Employees of 63,277 Issued and redeemed 105 Expenses of 63,236-238 Printed, issued by comptroller, and on Federal Advisory Council, conferences hand 102 with .- 56 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

542 INDEX TO PART I. Federal Reserve Board—Continued. Page. Foreign exchange: Page. Harrison, Geo. L., appointed general Bolshevik government, transactions with 49 counsel 62 Dollar exchange 21,48 Hoxton, W. W., appointed executive Purchases from and sales to other counsecretary 62 tries 47-50 Kent, F. I., resignation as director of di- Restrictions on foreign exchange transvision of foreign exchange 62 actions removed 47 Law division 56 Russian rubles, exchange transactions in. 49 Legislation recommended by 64,71 Foreign trade 23: Members holding office, etc., in member Conference of Board with executive combank, amendment to Federal Reserve mittee of Advisory Council to discuss. 56 Act regarding 59, :>89 Franchise tax: Members, list of 282 Amount paid by Federal Reserve Bank Moehlenpah, II. A., appointed member.. 62 of New York to Government 36,230 Officers and employees, number and sal- Amounts reserved from surplus earnings aries 277-279 of the Federal Reserve Banks 36,37,230 Officers, list of 282 Gold: Organization, staff, etc 63,211 Imports and exports of 52 Paddock, W. W., appointed chief of divi- Licenses granted by Board for export of.. 51 sion of operations and examination 62 Reserves of Federal Reserve Banks 13, Quarters outside Treasury Building rec- 69,86,121 ommended 03 Gold settlement fund: Strauss, Albert, designated as represen- Changes in ownership of gold each tative of Treasury Department at Peace week 218-221 Conference 62 Combined clearing and transfers through Federal Reserve districts: the fund 45,214 Counties in divided States 533-537 Condensed summary of transactions 212 Expense of operating 46 Description of 533-537 Fiscal agency operations in connection Map showing outline of 533 with 25,45 Population of 533-537 Leased-wire service 45 Federal Reserve notes: Weekly operations of, for all banks and Circulation of 13,65,82,86 New York bank 214 Collateral held against 81,83 Charts showing 216, 217 Cost of printing 97 Government bonds. (See United States Federal Reserve agents' accounts 98 bonds.) Gold cover for notes issued 81, S3,86,121 Government deposits, holdings of 18,27,118 Held by Federal Reserve Banks, last Government financing. (See Fiscal agency Friday of each month 82,83 operations.) In hands of Federal Reserve agents 90,93 Government, operations of Federal Reserve Interdistrict movement, of 100 Banks as fiscal agents of 2,12,25-28,69,233 Issued to Federal Reserve Banks 80,83,92 Governors of Federal Reserve Banks: Issued and redeemed 94 List of 282-288 Outstanding 83 Salaries of 274-277 Printed, by denominations 88 Harrison, G. L., appointed general counsel of Received from Comptroller and held on Federal Reserve Board 62 last Friday of each month 80,90 Hoxton, W. W., appointed executive secre- Redeemed 94 tary of Federal Reserve Board 62 Imports and exports 24 Reservesrequiredagainstnote liabilities. 86,121 Board opposed to financing of exports Returned by Federal Reserve Banks 91 which require long-term credit 25 Returned to Comptroller for distribution. 92 Gold 52 Shipped to each agent by denominctiens. 88 Licenses granted by Board for export of Federal Reserve system and war financing... 69 coin, bullion, and currency 51 Fiduciary powers granted to national banks.. 57, Russian rubles, importation of, restric- 62,260-269 tions 49 Fiscal agency operations of the Federal Re- Silver 52 serve Banks 2,12,25-28,69,233 Silver exports to the Orient 50 Gold settlement fund transactions in con- Interest rates. (See Discount rates.) nection with 25,45 Interlocking bank directorates 57 Foreign banking: Kent, F. I., resignation as director of division Amendment to act relative to investment of foreign exchange 62 by a national bank in the stock of a cor- Law division, Federal Reserve Board 56 Legislation recommended by Federal Reporation engaged in 59 serve Board 64,71 Amendment to Federal Reserve Act re- (See also Federal Reserve Act; Revised lative to Federal incorporation of insti- Statutes.) tutions engaging in 60,290 Liberty bonds. (See United States bonds.) Foreign branches of American banks 53 Licenses granted by Board for export of coin, Foreign branches of national banks 260 bullion, and currency 51 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART I. 543 Page. Page. Live-stock paper: Officers and employees of Federal Reserve Amount discounted 162 Board 63,277-279 Discount rates on 10 Open-market operations of Federal Reserve Loans to allied and associated powers 25 Banks 6,21,181-184,206-211 Managers of branches of Federal Reserve Paddock, W. W., appointed chief of division Banks. (See Federal Reserve Banks.) of operations and examination 62 Map showing outline of Federal Reserve dis- Par collection. (See Check clearing and coltricts 533 lection.) Maturities: Pittman Act: Acceptances 129,184 Amount of silver dollars broken up or Paper discounted 157-164,178 melted under provisions of 46 Paper held 114,128 Issues of Federal Reserve bank notes Paper purchased 179 under 46,204 Member banks: Population of Federal Reserve districts 533-537 Collateral notes discounted for 168,170 Profit and loss account of Federal Reserve Comparison between number, capital and Banks 234 surplus, and total resources of member Quarters: and nonmember banks 29 Federal Reserve Banks 37 Condition reports- Federal Reserve Board 63 Banks in principal cities 17-20 Rates, discount. (See Discount rates.) State banks and trust companies 259 Rates of earnings of Federal Reserve Banks. 31, National banks, number, capital and 136,138 surplus, and total resources 29 Real estate acquired by Federal Reserve Number accommodated during 1919 Banks for quarters 38 through discount of paper 166,180 Rediscount operations between Federal Re- Number in each district 166,227 serve Banks 5-7,185-199 Number in each State on December 31, Reserves: 1919 166 Federal Reserve Bank 13,69,121 Number remitting at par 44 Gold reserves of Federal Reserve Banks. 13,121 Paper discounted for 157,166,174 Gold against Federal Reserve note circu- State bank members, list of 239-259 lation 86,121 State banks and trust companies— Required against deposit liabilities 86,121 Abstract of condition reports 259 Required against Federal Reserve note Membership in system 28,57 liabilities 86,121 Number, capital and surplus, and Reserve position of the Federal Reserve total resources 28 Banks 8,14,69,121 Total bills discounted, distributed by Resources and liabilities: national and State bank members. 174 Federal Reserve Banks.. 12-16,112-123,139-156 (See also National banks; State banks.) Member banks in principal cities 19 Moehlcnpah, H. A., appointed member of State bank and trust company members. 259 Federal Reserve Board 62 Revised Statutes, amendments to: Municipal warrants: Section 5172—Engraved signatures on Average balances for year, also amount notes 59,289 and annual rates of earnings 136 Section 5200—Permitting national banks Purchased by Federal Reserve Banks.. 207,209 to loan to any one borrower an amount National banks: in excess of 10 per cent of capital and Amendment to Revised Statutes per- surplus 61,295 mitting loans in excess of capital and Russian rubles, restrictions in importation of, surplus 61,290 or exchange transactions in 49,-50 Bills discounted for, during year 174 Salaries: Branches of— National bank examiners 279-281 Foreign 260 Officers and employees of Federal Re- Recommendations to Congress for serve Banks 274-277 amendment to act relative to 64 Officers and employees of Federal Re- Examiners of, number and salaries 279-281 serve Board 277-279 Fiduciary powers granted to 57,62,260-269 Signatures, engraved, on bank notes, amend- Foreign branches of 260 ment to Revised Statutes regarding 59,289 Nonmember banks: Silver: Eligible for membership, number, capital Bullion value of silver dollar 49 and surplus, and total resources 29,31 Dollars melted or broken up under pro- Number of, on par list 44,227 visions of Pittman Act 46 Notes. (See Federal Reserve notes; Federal Imports and exports 52 Reserve bank notes.) Licenses granted by Board for export of. 51 Officers and directors of Federal Reserve Oriental demand for 49 Banks, list of 282 Price of 49 Officers and employees of Federal Reserve Sales of, under provisions of the Pittman Banks, number and salaries 34,274-277 Act 46 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

544 INDEX TO PART I. Page. Page. Staff. (See Employees.) Treasury financing, discussion of 2 State banks and trust companies: Trust powers granted to national banks 57,62, Admitted to system 28,57,239 260-269 Eligible for membership 29,31 Trust companies. (Set- State banks and trust State bank and trust company members: companies.) Abstract of condition reports 259 United States bonds: Bills discounted for, during year 174 Amounts purchased by Federal Reserve List of. 239-259 Banks 200,206,208 Resources and liabilities 259 j Held by Federal Reserve Banks 13,131 Strauss, Albert, designated as representative | Held by member banks 17 of Treasury Department at Peace Confer- ! Liberty bonds, discounted paper secured ence , 62 | by, held by Federal Reserve Banks ... 12, Surplus account of Federal Reserve Banks: | 168,206,208 Amounts transferred to, at end of year. j United States securities: 36,37,229 Earnings, amount and annual rate, on... 136 Percentage of surplus to subscribed capi- HeM by Federal Reserve Banks 13,131 tal 36,230 Held by member banks 17 Tax certificates of indebtedness 2,26 Purchases by Federal Reserve Banks.. 202-208 Tax, franchise, amounts reserved from sur- Rates of earnings on 32,136,138 plus earnings of Federal Reserve Banks. Victory notes: 36,37,229 Discounted paper secured by, held by Telegraph service, leased-wire system 46 Federal Reserve Banks 12,168,207,209 Trade acceptances. (See Acceptances,Trade.) Discount rates on paper secured by 9 Treasury certificates of indebtedness: Held by member banks 17 Amounts purchased by Federal Reserve Held by Federal Reserve Banks.... 13,131,132 Banks 47,202,207,209 Operations of Federal Reserve Banks as Amounts purchased by Federal Reserve fiscal agents of the Government 25-28 Banks under provisions of Pittman Act. Purchases by Federal Reserve Banks 200, 47,204 207,209 Cooperation of Federal Reserve Banks in War Finance Corporation bonds, discount saleof 2 rates on paper secured by 10 Discount rates on paper secured by 8 War paper: Discounted paper secured by, held by Amounts purchased by Federal Reserve Federal Reserve Banks 12,168 Banks 202-209 Held by Federal Reserve Banks on Dec. Held by Federal Reserve Banks ]2,131 31,1918 and 1919 131,132 Held by member banks during 1919 17 Held by member banks 17 Loans secured by, held by member Operations of Federal Reserve Banks as banks 17 fiscal agents of the Government 25-28 War savings stamps, operations of I ederal Purchased to secure Federal Reserve Reserve Banks as fiscal agents of the Gov- Bank notes under Pittman Act 47,204 ernment in sale of 27 Purchases by Federal Reserve Banks 202, Warrants, municipal, purchased by Federal 207,209 Reserve Banks 136,207,209 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

IftDEX TO PART II—REPORTS OF FEDERAL RESERVE AGENTS. Page. District No. 1—Boston—Continued. Page. District No. 1—Boston 299-316 Resources and liabilities 31 (> Acceptances- State banks and trust companies ad- Bankers' 303 mitted to Federal Reserve System 305 Trade 303 State bank members, examination Balance sheet, comparative, 1917-1919. 300,316 of 304 Bank of England, sterling account with.. 305 Trade acceptances 303 Bankers' acceptances 303 Treasury financing 311 Banking quarters 308 United States securities 304 Business conditions during 1919, review of 299 Victory Liberty loan 309 Certificates of indebtedness 304,309 War savings division 310 Charts- District No. 2—New York 317-332 Movement of earning assets 314 Acceptances— Net deposit liability, Federal Keserve Bankers' 318,319note circulation, cash reserves, and Trade 318,319 reserve ratio 315 Balance sheet, comparative, 1918-1919... 332 Collection of checks 308 Bankers7 acceptances 318,319' Credit department and bank examina- Bonus to employees 326tions 304 Buflalo Branch, opening and functions Currency receipts and disbursements 307 of 32© Custody department, operations of 310 Certificates of indebtedness 317,327 Deposit and note liabilities, movement of. 313 Charts- Deposits— Movement of earning assets 330 Member banks 307 Net deposit liability, Federal Reserve Savings banks 307 note circulation, cash reserves and Discount operations 301 reserve ratio 331 Discount rates 301 Clearings and collection 321 Dividends 300 Deposit and note liabilities 329 Earning assets, movement of 312 Deposits, Government 327 Earnings 300 Disbursements, Government 32S Examinations of member banks 304 Discounts and advances made in 1917, Federal Reserve bank not es 308 1918, and 1919 318 Federal Reserve notes 308 Dividends 320 Federal Reserve System, additions to Earning assets 317,328 membership 306 Earnings and expenses 319 Fiduciary powers granted to banks 307 Employees, bonus for 326 Financial results of operation 300 Expenses 319 Foreign exchange, licenses and permits Exports of gold and silver 324 issued for 311 Federal Reserve bank notes 321 Gold and cash reserves, Federal Reserve Federal Reserve notes 320note and net deposit liabilities 313 Federal Reserve System, State banks and Gold deposited with Bank of England for trust companies admitted to member- Federal Reserve Bank 305 ship 322 Industrial conditions during 1919, review Fiduciary powers granted to national of 299 banks 322 Internal organization, increase in clerical Fiscal agency operations 327 force 308 Foreign banks, relations with 323-324 Liberty loan, Victory 309 Argentina 324 Loans and discount operations 301 Bank of England 323 National banks, new 306 Bank of France 323 Par collection of checks 308 Bank of Japan 323 Quarters for bank 308 Bank of Spain 323 Rates, discount 301 Bolivia 324 Relations with commercial banks 306 De Javasche Bank 325 Reserve position 305,313 De Nederlandsche Bank 323. Reserves- India 323 Gold and cash, movement of 313 Norges Bank 323 Member banks 307 Peru 324 Review of industrial conditions during Philippine National Bank 323. 1919 299 Sveriges Riksbank 323 545 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

546 I^sDEX TO PART II. District No. 2—New York—Continued. Page. | District No. 3—Philadelphia—Continued. Page. Gold, German, received in payment for Federal Reserve System, State banks adfoodstuffs 324 mitted to membership 341 Gold imports and exports 324 Fiduciary powers granted to national Gold settlement fund 321 banks 341 Government deposits 327 Fiscal agency operations 342 Imports and exports of gold and silver... 324 Gold settlement fund operations 337 Internal organization of bank 325 Government deposits 344 International financial arrangements.... 323 Internal organization of bank 338 Liberty loan, Victory 327 Liberty loans 343 Member banks: Loans and investments of member banks Bills purchased for, in open market.. 319 in cert un cities 340 State bank membership 322 Member banks— Movement of earning assets 328 National 339 Movement of gold and cash reserves, Fed- State banks and trust companies.. 339,341 eral Reserve note and net deposit lia- Movement of earning assets 346 bilities 329 Movement of gold and cash reserves, Fed- Officers, duties of 325 eral Reserve note and net deposit lia- Purchases of bills in open market for bilities 347 member banks 319 Officers 338 Relations with banks in district 322 Open market operations 336 Reserve percentage of bank 317 Rediscounts 334 Reserves, movement of gold and cash... 329 Reserve position of bank 334,347,349 Reserves of member banks 322 Resource and liability items of member Resources and liabilities 332 banks in four cities 339 State bank and trust company members 322 Resources and liabilities 350 Trade acceptances 318 Savings deposits 341 Victory loan subscriptions 327 State bank members 339,341 District No. 3—Philadelphia 333-350 Summary of five Liberty loans 343 Acceptances- Territory comprising district 339 Bankers' 336 Transit and clearings 337 Permission to accept up to 100 per Victory Liberty loan 343 cent 341 War savings division operations 345 Trade 336 District No. 4—Cleveland 351-366 Balance sheet, comparative, 1917-1919... 350 Acceptances— Bankers' acceptances 336 Bankers' 352 Banking resources in district 339 Permission to accept up to 100 per Bills discounted for members 335 cent 352 Boundaries of district 339 Trade 351 Business conditions 333 Accounting and planning department... 360 Cafeteria ' 338 Balance sheet, comparative, 1918-19..... 366 Certificates of indebtedness 344 Banking conditions in district 361 Charts- Banking quarters 360 Movement of earning assets 348 Branches of Federal Reserve Bank 358 Net deposit liability, Federal Reserve Business conditions in district 361 note circulation, cash reserves and Certificates of indebtedness 352,356 reserve ratio 349 Charts- Christmas savings fund deposits 341 Movement of earning assets 364 Clearing and collection 337 Coupon department 336 Net deposit liability, Federal Reserve Deposit and note liabilities 347 note circulation, cash reserves, and Deposits, Government 344 reserve ratio 365 Directors 338 Clearing and collection operations 358 Discount operations 334 Cincinnati Branch, operations of 358 Discount rates 334 Currency receipts and disbursements 358 Dividends 333 Deposit and note liabilities 363 Earning assets- Directors 359 Daily holdings 335 Discount operations 351 Movement of 346,348 Dividends 352 Earnings and expenses 333 Earning assets, movement of 362 Employees 338 Earnings 352 Examination, department of 342 Examinations, State bank members 355 Expenses 333 Expenses 352 Federal Advisory Council, member of... 338 Federal Reserve bank notes 356 Federal Reserve bank notes 336 Federal Reserve notes 356 Federal Reserve Club 338 Federal Reserve System, additions to Federal Reserve notes 336 membership 353 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART II. 547 District No. 4—Cleveland—Continued. Page. District No. 5—Richmond—Continued. Page. Fiduciary powers granted to national Expenses 369 banks 354 Federal Reserve bank notes 373 Financial results of operation 352 Federal Reserve notes 371,373 Fiscal agency operations 356 Financial results of operation 369 Internal organization of bank 359 Fiscal agency operations 375 Liquidation of bond-secured loans 357 Gold settlement fund operations 369,374 Loans and rediscounts 351 Internal organization of bank 373 Member banks— Leased wire service 368 National 353,354 Liberty loans- State banks and trust companies .. 353,355 Review of five loans 376 Money department, operations of 358 Victory 375 Movement of earning assets 362 Member banks 367 Movement of gold and cash reserves, Fed- National 371 eral Reserve note and net deposit lia- State 371 bilities 363 Movement of earning assets 377 National banks, relations with 353,354 Movement of gold and cash reserves, Officers 359 Federal Reserve note and net deposit Par list, banks added to 358 liabilities 380 Pittsburgh Branch, operations of 358 Nonmember banks in district 372 Position of commercial banks 356 Officers 373 Profit and loss account 353 Par points, campaign for 374 Quarters of bank 360 Quarters of bank 373 Rediscounts 351 Rediscounts 370 Relations with national bank members... 354 Relations with member banks 372 Relations with State bank and trust com- Reserve position 371,380 pany members 355 Reserves of member banks 371 Reserve position of bank 352,363 I Resources and liabilities, comparative, Reserves, movement of 363 1918-19 381 Resources and liabilities— Services rendered to member banks 367 Federal Reserve Bank 366 State bank members 371 Member banks 357 Transfer of funds by wire 369 Results of operation 352 Victory loan 375 State banks and trust companies— District No. 6—Atlanta 383-401 Admitted to Federal Reserve System. 353 j Acceptances— Examination of. 355 ! Bankers' 385 Resources and liabilities of 357 j Trade 385 Victory Liberty loan 356 j Balance sheet 384,401 District No. 5—Richmond 367-381 Banking conditions in district 394 Acceptances- Banking quarters 394 Bankers 371 Branch banks 391,394 Trade 371 Business conditions in district 394 Balance sheet, comparative, 1918-19 381 Capital issues committee 389 Baltimore Branch, operations of 374 j Certificates of indebtedness 388 Banking conditions in district 376 Charts- Banking quarters 373 Movement of earning assets 398 Bills discounted and bought 370 j Net deposit liability, Federal Reserve Branch bank operations 374 note circulation, cash reserves, and Business conditions in district 376 reserve ratio 399 Campaign for par points 374 Clearings and collection 392 Certificates of indebtedness 376 Coupons redeemed 394 Charts- Deposit of Treasury funds in banks 388 Movement of earning assets 378 Deposits, net 400 Net deposit liability, Federal Reserve Directors 392 note circulation, cash reserves and Discount operations 384 reserve ratio 379 j With national banks 386 Clearings and collection 368,374 With State banks and trust com- Coupons from United States securities panies 387 cashed 369 Earning assets, movement of 396 Currency receipts and shipments 368 Earnings and expenses 384 Deposit and note liabilities 380 Employees 392 Directors 373 Examinations of State member banks... 387 Discount operations 367,370 Expenses 384 Earning assets, movement of 377 Federal Reserve bank notes 389 Earnings 369 Federal Reserve notes 389 Employees 373 Fiduciary powers granted to national Examination department operations 372 banks 386 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

548 INDEX TO PART II. District No. 6—Atlanta—Continued. Page. District No. 7—Chicago—Continued. Page, Financial results of operation 384 Expenses 404 Fiscal agency operations. 387 Federal Reserve bank notes 410 Foreign Government credit accounts 393 Federal Reserve clearing system 411 Gold settlement fund 393 Federal Reserve notes 405,410 Gold with foreign agencies 393 Fiduciary powers granted to national Internal organization of bank 392 banks > 408 Liberty loan, Victory 388 Financial results of operation 404 Liquidation of bond-secured loans 391 Foreign accounts 414 Member banks— Gold settlement fund operations 414 National 386 Internal organization 414 Reserves of 387 Iowa, State bank reserves in 409 State 386 Leased wire service 412 Movement of earning assets 396 Liberty loans 409 Movement of gold and cash reserves, Liquidation of war paper 406 Federal Reserve note and net deposit Member banks 407 liabilities 400 Movement of earning assets 417 Nashville Branch 391 Movement of gold and cash reserves, Fed- National banks 386 eral Reserve note and net deposit lia- New Orleans Branch 394 i bilities 420 Officers 392 National banks 407 Position of commercial banks as a result Officers 415 of war financing 390 Par list, additions to... .* 412 Quarters of Federal Reserve Bank 394 Position of commercial banks as a result Quarters of New Orleans branch 394 of war financing 411 Rediscounts 384 Quarters of bank 414 Relations with national banks 386 Rediscounts 405 Relations with State bank members 387 Reserve position 407,418 Reserve position 385,400 Reserves- Reserves- Movement of 420 Member banks 387 State banks 409 Movement of 400 Resources and liabilities 421 Resources and liabilities 401 Speculation 406 Savannah agency 391 State bank members 407 Services to member banks 383 State bank reserves 409 State bank members 386,887 Territory of Detroit Branch 416 Victory Liberty loan 388 Transfer of funds by mail and telegraph.. 412 War Finance Corporation 389 Transit operations 411 War savings certificates 388 Victory Liberty loan 409 District No. 7—Chicago 403-421 War Savings stamps 410 Acceptances— District No. 8—St. Louis 423-43S Bankers' 405,406 Acceptances- Trade 406 Bankers' 424 Balance sheet 403,421 Permission to accept up to 100 pet- Banking conditions 403 cent 425 Banking quarters 414 Trade 424 Branch bank, Detroit 415,416 Balance sheet 423,438 Business conditions 403 Banking quarters 429 Certificates of indebtedness 404,409,410,413 Branches of Federal Reserve Bank 429 Charts- Business conditions in district 432 Movement of earning assets 418 Cash reserves, movement of 435 Net deposit liability, Federal Re- Certificates of indebtedness r 430 serve note circulation, cash re- Chartsserves, and reserve ratio 419 Movement of earning assets 436 Clearing and collection 411,412 Net deposit liability, Federal Re- Collateral department 413 serve note circulation, cash reserves Deposits— and reserve ratio 437 Government 404 Clearings and collection 428 Net 407 Conference of officers and directors of Fed- Treasury funds with banks 410 eral Reserve Bank and its branches... 430 Detroit Branch 415,416 Coupons of United States handled 428 Directors 414 Deposit of Treasury funds with banks... 431 Discount operations 405 Discount operations 423 Earning assets, movement of 404,405,417 Dividends 423 E arnings 404 Earning assets, movement of 434 Employees. 415 Earnings 423 Examinations, department of 408 Employees 429 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PABT II. 549 District No. 8—St. Louis—Continued. Page. District No. 9—Minneapolis—Continued. Page. Examination of State bank members 426 Federal Reserve Club 450 Expenses 423 Federal Reserve notes 446 Federal Reserve bank notes 427 Fiduciary powers granted to national Federal Reserve notes 427 banks 444 Fiduciary powers granted to national Financial results of operation 439 banks 425 Fiscal agency operations 444 Financial results of operation 423 Gold holdings 442 Fiscal agency operations 430 Gold settlement fund 442 Gold settlement fund operations 428 Helena branch 440,450 Internal organization 429 Internal organization 450 Liberty loan, Victory 431 Liberty loans 445 Little Rock Branch 430 Liquidation of loans 449 Louisville Branch 429 Member banks 443 Member banks- Movement of earning assets 452 National 425 Movement of gold and cash reserves, Relations with 425,426 Federal Reserve note and net deposit State banks and trust companies 425 liabilities 453 Memphis Branch 429 Nonmember banks, relations with 443 Movement of earning assets 434 Officers 450 Movement of gold and cash reserves, Par list, additions to 445 Federal Reserve note and net deposit Rediscount operations 441 liabilities 435 Relations with member and nonmember National banks, relations with 425 banks 4 4S Par list, additions to 428 Reserve position 453 Position of commercial banks 432 Resources and liabilities 456 Quarters of bank 429 State bank members and nonmembers... 443 Rediscounts 424 Treasury deposits 447 Relations with national banks 425 Victory Liberty loan 445 Relations with State banks and trust War financing 448 companies 426 Wold, Theodore, resignation as governor. 449 Reserve position 425,435 District No. 10—Kansas City 457-471 Resources and liabilities 438 Acceptances- State bank members 425,426 Bankers' 458 Victory Liberty loan 431 Trade 458 War Finance Corporation 431 Balance sheet 470 War savings stamps 431 Banking quarters 465 District No. 9—Minneapolis 439-456 Branches of Federal Reserve Banks. 462 Acceptances- Certificates of indebtedness 460 Domestic and foreign 442 Charts— Permission to accept up to 100 per Movement of earning assets 468 cent 444 Net deposit liability, Federal Reserve Trade 442 note circulation, cash reserves and Balance sheet 456 reserve ratio 469 Banking conditions in district 440 Clearings and collection 464 Bond and coupon department 448 Denver Branch 463 Branch banks 440.450 Directors 464 Business conditions in district 440 Discount operations 458 Certificates of indebtedness 444 Dividends 458 Charts— Earning assets, movement of 466 Movement of earning assets 454 Earnings and expenses 457 Net deposit liability. Federal Re- Employees 464 serve note circulation, cash reserves Examination of State bank members 460 and reserve ratio 455 Expenses 457 Clearirj g and collection 445 Federal Reserve bank notes 461 Coupon department 44& Federal Reserve notes 461 Deposits, Treasury funds with banks 447 j Fiduciary powers granted to national Directors 449,450 j banks 459 Discount operations 441 | Financial results of operation 457 Dividends 439 | Fiscal agency operations 460 Earning assets, movement of 452 Gold settlement fund 465 Earnings 439 Internal organization of bank 464 Employees 450 Liberty loan, Victory 460 Examination department 447 Liquidation of loans of bank 462 Expenses 439 Member banks 459 Federal Reserve bank notes 446 Movement of earning assets 466 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

550 INDEX TO PART II. District No. 10-—Kansas City—Continued. Page. District No. 11—Dallas—Continued. Page. Movement of gold and cash reserves, Fed- Resources and liabilities 490 eral Reserve note and net deposit lia- State bank members 476,483 bilities 467 War savings stamps 479 Officers 464 District No. 12—San Francisco 491-508 Oklahoma City Branch 463 Acceptances, bankers' 493 Omaha Branch 462 Balance sheet 508 Position of commercial banks as a result | Banking quarters 500 of war financing 461 Branches of Federal Reserve Bank 499 Quarters of bank 465 Business conditions in district 501 Reserve position. 459,467 j Certificates of indebtedness 496 Resources and liabilities 470 j Charts- State bank members 459 j Movement of earning assets 506 Victory Liberty loan 460 j Net deposit liability, Federal Reserve War Finance Corporation 461 i note circulation, cash reserves, and War saving stamps 461 i reserve ratio 507 District No. 11—Dallas 473-490 | Clearings and collection 500 Acceptances— j Deposit of Treasury funds with banks... 497 Permission to accept up to 100 per \ Discount operations 492,494 cent 477 | Dividends 491 Trade 475 ; Earning assets, movement of 504 Balance sheet 474,490 j Earnings 491 Banking conditions in district 483 j Employees 499 Banking quarters 482 ! Examinations of member banks 495 Branches of Federal Reserve Bank 480 Expenses 491 Business conditions in district 483 | Federal Reserve Bank notes 498 Certificates of indebtedness 478 j Federal Reserve notes 498 Charts— ! Fiduciary powers granted to national ' Movement of earning assets 488 \ banks 494 Net deposit liability, Federal Re- I Financial results of operation 491 serve note circulation, cash reserves I Fiscal agency operations 496 and reserve ratio 489 { Gold settlement fund 500 Clearings and collection 481 j Imports and exports 502 Directors, meeting of 480 j Internal organization of bank 499 Discount operations 474 [ Liberty loan, Victory 497 Dividends 474 j Los Angeles Branch 499 Earning assets, movement of 486 j Member banks— Earnings and expenses 473 I National 494 El Paso Branch 480 j Resources and liabilities of 503 Examination of State banks 477 '• State 495 Expenses 473 i Movement of earning assets 504 Federal Reserve bank notes 479 ; Movement of gold and cash reserves, Federal Reserve notes 479 ; Federal Reserve note and net deposit Fiduciary powers granted to national j liabilities 505 banks - 476 j National banks in district 494 Financial results of operation 473 ' Officers 499 Fiscal agency operations 478 Portland Branch 499 Houston Branch 480 Quarters of bank 500 Internal organization of bank 480 Rediscounts 492 Member banks 476 • Relations with national banks 494 Movement of earning assets 486 ; Relations with State banks and trust com- Movement of gold and cash reserves, Fed- ;• panies 495 eral Reserve note arid net deposit lia- j Reserve position 493,505 bihties 487 j Reserves of State banks 496 National banks in district 476 I Resources and liabilities of Federal Re- Officers, meetings of 480 j serve Bank 508 Position of commercial banks as a result j Resources and liabilities of member of war financing 480 j banks 503 Quarters of bank 482 Salt Lake City Branch 499 Rediscounts 474 SeattleBranch 499 Relations with national banks 476 Spokane Branch 499 Relations with State banks and trust State bank members 495 companies 477 Treasury funds deposited with banks 497 Reserve position 475,487 Victory Liberty loan 497 Reserves of member banks 477 War savings stamps 497 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART NI-RECOMMENDATIONS OF THE FEDERAL ADVISORY COUNCIL Page. Page. Acceptances: Circulation. (See Federal Reserve notes and Bankers', instant credit to reserves of national bank notes ) member banks 514 Collection of checks: Development of market for 516 Checks to be sent direct to city on which Domestic 520 drawn 513 Foreign, banks should be permitted to Expeditious handling by transit departdiscount in foreign markets without ments 513 limit 517 Uniform plan for handling checks 529 Foreign banking corporations, limitation Collection of trade acceptances 520 of 521 Contingent liability. (See Liability.) In London banks 516 Counsel of banks, opinion that foreign bank Preferential rate for 516 balances can not be deducted from "due to Trade 520 banks" in computing reserves 531 Administration of Federal Reserve Banks by Counsel of Federal Reserve Board, to give Federal Reserve Boara — 513 opinion as to legality of proxies to represent Alternate, or proxy, to represent district district members at council meetings 522 member at council meetings 522 Credit expansion checked by rates 530 Amendments to Federal Reserve Act: Credits, dollar, for financing exports 519 Directors, increase in number of 521 Credits, foreign: Federal Reserve foreign banks, establish- Financed by War Finance Corporation.. 520 ment of 523 For financing exports 519 Loans to other than member banks on call Security for 519 and short time 527 Criticism of policies of Federal Reserve Board. 513 Member banks to borrow on 90-day notes Definition of "readily marketable staples"... 520 secured by United States obligations, Differential rates. (See Rates.) for period of war financing 514 Directors of Federal Reserve Banks, increase Member banks to establish branches in number of 521 under certain conditions 528 Discount rates. (See Rates.) Savings banks, admission of incorporated 5?9 Division of investment power of United Amendment to Revised Statutes: States between foreign and domestic needs. 518 Section 5169, new national banks to have Dollar credits, for foreign financing 519 approval of Federal Reserve Board Domestic acceptances 520 before commencing business 513 Domestic demands for capital 518 Section 5202, to enable national banks to Embargo on gold exports can be lifted 522 discount bills of exchange in foreign Exports: markets without limit 517 Financing— American Bankers'Association, suggestion to Foreign governments to guarantee admit incorporated savings banks 529 credits, or their obligations taken Bank balances in foreign banks can not be as security for 519 deducted from "due to banks," ruling of By War Finance Corporation 520 Federal Reserve Board 531 Gold, embargo to be lifted 522 Bankers' acceptances. (See Acceptances.) Maintenance of 51S Bills of exchange, national banks permitted (See also Foreign trade.) to discount in foreign markets without Federal Advisory Council, proxies to reprelimit 517 sent council members at meetings 522 Bonds: Federal Reserve Act, amendments to. (Sec Foreign, floated by investment trusts 519 Amendments.) (See also United States obligations.) Federal Reserve foreign banks, bill (S. 2582) Branches of member banks, establishment of, to establish 523 amendment to Federal Reserve Act 528 Federal Reserve notes: Call loans. (See Loans.) Capital, demand for, m United States and Daily redemption makes it unnecessary abroad 518 to retire United States notes 527 Certificates of indebtedness. (See. United Should be paid out by Federal Reserve States.) Banks in place of unfit national bank Changes m administration of Federal Reserve notes 514 System, suggestions 513 Financial necessities of United States 513. 551 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

552 INDEX TO PART III. Member banks—Continued. Page. Five per cent redemption fund, transferred to Reserves of. (See Reserves.) Federal Reserve Banks 522 Silver and fractional coin, to be supplied Foreign acceptances. (See Acceptances.) by Federal Reserve Banks 522 Foreign bank balances can not be deducted To borrow from Federal Reserve Banks from "due to banks" 531 on notes secured by United States obli- Foreign banking corporations, limitation on gations 514 acceptance power 521 (See also National banks.) Foreign banks, bills (S. 2582 and 2590) to Mills, A. L.: establish 523 Negative vote 514 Foreign bonds floated by investment trusts.. 519 Topics suggested by 522 Foreign credits. (See Credits.) National banks: Foreign demand for American goods 518 Liability under section 5202 as indorser Foreign demand for capital 518 on accepted bills of exchange redis- Foreign exchange: counted in foreign markets 517 Depreciation of... 518 New, to have approval of Federal Reserve Market conditions 516 Board 513 Foreign Finance Corporation, bill (S. 2590) to (See also Member banks.) establish 525 National bank notes: Foreign governments: Redeemed by Federal Reserve Banks, To guarantee credits for exports 519 5 per cent redemption fund to be trans- Obligations as security for export credits. 519 ferred from Treasury 522 Foreign investments, United States 518 ; 519 Unfit for circulation, should be received Foreign trade: on deposit by Federal Reserve Banks As affected by depreciation of foreign ex- for immediate credit 514 change 519 New York Clearing House, committee report As it affects demand for capital 518 against changing basis of computing mem- Financing 518 ber bank reserves 530 (See also Exports.) Notes. (See Federal Reserve notes; National Gold exports, embargo on, to be lifted 522 bank no^es.) Governors of Federal Reserve Banks to be Opinion by counsel of banks that foreign bank members of board of directors if number is balances can not be deducted from "due to increased to 11 521 banks" 531 Improvement of Federal Reserve System, Opinion by counsel of Federal Reserve Board suggestions 513 as to legality of proxies to represent district Interest rates. (See Rates.) members at council meetings 522 Investment power of United S tates 518 Policies of Federal Reserve Board, criticisms Investment trusts 519 and suggestions 513 Investments, foreign: Preferential rates. (See Rates.) Demand for 518 Proxy to represent district member at coun- Floating by investment trusts 519 cil meetings 522 Market for 518 Railroad requirement affecting demands for Legal opinions. (See Opinions.) capital 518 Liability, contingent, of Federal Reserve Rate of discount: Banks for rediscount with other Federal Differential for bankers' acceptances 516 Reserve Banks should be shown m state- Differential for paper secured by Governments 514 ment obligations 515,529 Liberty Loan bonds. (See United States Kept down by permitting Federal Reobligations.) serve Banks to loan other than member banks at call and short time 52 7 Loans to member banks: Not to be changed during 1919 530 On notes secured by United States obli- To be increased when reserves of Federal gations for 90 days 514 Reserve Banks can only be maintained Rates to be increased when reserves of by borrowing 521 Federal Reserve Banks are exhausted.. 521 Rate of interest on United States Victory Secured by United States obligations, Liberty loan bonds 514 differential rate to be maintained dur- ''Readily marketablestaples," definition of. 520 ing 1919 529 Redemption fund, 5 per cent for national- Loans to other than member banks by Fed- bank notes, should be transferred to Federal Reserve Banks, on call or short time.. 527 eral Reserve Banks 252 London exchange market 517 Rediscounts between Federal Reserve Banks London rates for bankers' acceptances 516 should be shown in published statements. 514 Member banks: Reserves of Federal Reserve Banks, when Branches, to establish under certain con- maintained only by borrowing, rates ditions 528 should be increased 521 Checks on, uniform plan for handling 529 Reserves of member banks: Permitted to discount foreign acceptances Balances in foreign banks can not be dein foreign markets without limit. 517 ducted from " due to banks " 531 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PABT III. 553 Reserves of member banks—Continued. Page. Trade acceptances. (See Acceptances.) Fage. Basis for computing should be character Trade, foreign. (See Foreign trade.) of deposits 528 Trusts, investment, as means of floating for- Basis for computing should not be i eign securities 519 changed at present 530! Victory Liberty loan. (See United States Immediate credit given at Federal Re- obligations.) serve Banks for bankers' acceptances Votes in negative 514 paid 514 United States notes, legislation to retire, con- Retirement of national-bank notes: sidered inadvisable 527 Through 5 per cent redemption fund 522 United States obligations: Unfit for circulation 514 Certificates of indebtedness, refunding of. 530 Retirement of United States notes not ad- Differential loans secured by, to continue visable 527 under same rate of discount for 1919... 529 Rulings of Federal Reserve Board: Differential rate of discount for loans Foreign bank balances can not be de- secured by 515 ducted from "due to banks" 531 Market value should be protected 530 Liability of national banks be unlimited Member banks to borrow on 90-day notes asindorser on accepted bills of exchange secured by 514 rediscounted in foreign markets 517 United States Revised Statutes: Savings banks, amendment to admit into Sec. 5169, amended so new national banks Federal Reserve System 529 should have approval of Federal Re- Security for foreign credits 519 serve Board 513 Senate bills: Sec. 5202, amended as to liability created 170, branches of member banks 528 by national banks as indorser on ac- 2582, Federal Reserve Foreign Bank 523 cepted bills of exchange 517 2590, Foreign Finance Corporation 525 War Finance Corporation 520 Silver and fractional coin to be supplied mem- War Finance Corporation to subscribe for ber banks by Federal Reserve Banks 522 stock of Foreign Finance Corporation 525 Staples, readily marketable, definition of 520 Watts, F. O., negative vote 515 Statements of Federal Reserve Banks,weekly, Weekly statement of Federal Reserve Banks should show contingent liability for redis- should show contingent liability for rediscounts 514 counts 514 Suggestions for improving Federal Reserve Wing, D. G., negative vote 514 System 513 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis