Annual Report of the Federal Reserve Board, 1920

SEVENTH ANNUAL REPORT OF THE FEDERAL RESERVE BOARD COVERING OPERATIONS FOR THE YEAR 1920 WASHINGTON GOVERNMENT PRINTING OFFICE 1921 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 1-357 PART II.—Reports of Federal Reserve agents to the Federal Reserve Board. 359-596 PART III.—Recommendations of the Federal Advisory Council to the Federal Reserve Board for year 1920 597-609 PART I. TEXT OF REPORT: Introductory review 1 Production in 1920 4 Industry and prices 6 Readjustment, a world-wide process 10 Control and regulation of credit 11 Agricultural credits 15 Bank credit 18 Foreign trade financing 19 Corporations formed under the Edge Act 23 State foreign banking corporations 26 Foreign branches of national banks 27 Foreign exchange 27 Exchange transactions with Soviet Russia 34 Relative position of American business and finance with that of foreign countries 35 Movement of principal assets and liabilities of all Federal Reserve Banks during 1920 40 Movement of reserves and reserve ratio 46 Interbank purchases of acceptances and rediscount operations 47 Development of the acceptance market 50 The cancellation evil 53 * Changes in discount rates 57 Check clearing and collection 63 r Gold settlement fund 70 Fiscal agency operations 72 Condition of member banks in leading cities 78 State bank membership 84 Earnings and expenses of the Federal Reserve Banks 87 Changes in rates of earnings 90 Branches of Federal Reserve Banks and their operations 92 Building operations of Federal Reserve Banks 93 Amendments to the Federal Reserve Act 97 Law division of the Federal Reserve Board 99 Meetings of Federal Advisory Council 101 Conferences held by the Federal Reserve Board 101 Board's organization, staff, and expenditures 101 in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

IV TABLE OF CONTENTS. EXHIBITS. DISCOUNT RATES: No. 1. High and low in force during each year since organization of Federal Reserve Banks, by character of paper and maturities 104 FEDERAL RESERVE NOTES: No. 2. Outstanding, held by each bank, and in actual circulation, also gold and eligible paper pledged as collateral for outstanding notes—Monthly figures during 1920 for each Federal Reserve Bank 108 No. 3. Collateral (gold and eligible paper) pledged with Federal Reserve Agents as security against notes, and amount and percentage of gold available as reserve against notes in circulation—Weekly figures during 1920 for all Federal Reserve Banks combined... Ill No. 4. Printed, shipped to each Federal Reserve Agent and to United States subtreasuries since organization of banks, and on hand in Washington on December 31, 1920, by denominations 114 No. 5. Issued by Federal Reserve Agents to each Federal Reserve Bank and amounts retired by each Federal Reserve Agent, since organization of banks, also amounts outstanding December 31, 1920, by denominations 116 No. 6. Issued and redeemed by each Federal Reserve Agent, by months during 1920, with totals for 1919 118 No. 7. Mutilated notes of each Federal Reserve Bank received and destroyed by the Comptroller of the Currency since organization of banks, by denominations 120 No. 8. Issued and redeemed by each Federal Reserve Agent during 1920 and 1919, with amounts outstanding as of December 31, for 1920, 1919, 1918, and 1917, by denominations 121 No. 9. Received from and returned to the comptroller for destruction, and issued to and returned by each Federal Beserve Bank during 1920, also amounts outstanding at beginning and end of year, by denominations, as reported by each Federal Reserve Agent. 121 No. 10. Accounts of each Federal Reserve Agent at close of business, December 31, 1920 125 No. 11. Interdistrict movement during 1920, with totals for 1919, 1918, and 1917 126 FEDERAL RESERVE BANK NOTES: No. 12. Printed, issued, and redeemed by the Comptroller of the Currency since organization of banks, also amounts outstanding and on hand on December 31, 1920, by denominations and districts 128 No. 13. Issued by the Comptroller of the Currency to each Federal Reserve Bank under the provisions of the Pittman Act up to and including December 31, 1920, by denominations and districts 131 CURRENCY RECEIPTS AND PAYMENTS: No. 14. Received from and paid to member and nonmember banks by each Federal Reserve Bank, by months during 1920, with totals for 1919 132 No. 15. Received from and paid to member and nonmember banks by each Federal Reserve Bank and branch during 1920, with totals for 1919 135 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. V CONDITION OF FEDERAL RESERVE BANKS: Page> No. 16. Resources and liabilities of all Federal Reserve Banks combined at close of business on each Friday from January 2 to December 30, 1920 ." " 137 No. 17. Net amount of accommodation received from or extended to other Federal Reserve Banks as of the last Friday in each month from April, 1919, to December, 1920 144 No. 18. Detailed statement showing condition of each Federal Reserve Bank on December 31, 1920 146 No. 19. Net deposits, Federal Reserve note circulation, required reserves, and excess reserves of all Federal Reserve Banks combined for each Friday in 1920 152 No. 20. Average daily figures of cash reserves, total earning assets, net deposits, and Federal Reserve note circulation, also the daily average reserve percentage, by months during 1920 and 1919... 155 Discounted paper— No. 21. Average daily holdings of each Federal Reserve Bank, by months during 1920, with totals for 1919, 1918, and 1917 156 No. 22. Maturity distribution of amounts held by each Federal Reserve Bank on the last Friday in 1920 157 No. 23. Maturity distribution of amounts held by all Federal Reserve Banks combined on the last Friday in each month during 1920, and on the last Friday in 1919, 1918, and 1917 158 No. 24. Secured by Liberty bonds, Victory notes, and certificates of indebtedness, held by all Federal Reserve Banks combined on the last Friday in each month during 1920 159 No. 25. Character of paper held by each Federal Reserve Bank on December 30, 1920 160 No. 26. Character of paper held by all Federal Reserve Banks combined on the last Friday of each month during 1920, with totals for 1919 and 1918.". 161 Purchased paper—• No. 27. Average daily holdings of each Federal Reserve Bank, by months during 1920, with totals for 1919, 1918, and 1917 162 No. 28, Maturity distribution of amounts held by each Federal Reserve Bank on the last Friday in 1920 163 No. 29. Maturity distribution of amounts held by all Federal Reserve Banks combined on the last Friday in each month during 1920, and on the last Friday in 1919, 1918, and 1917 163 No. 30. Held by each Federal Reserve Bank on December 31, 1920, and by all banks combined at the end of 1919, 1918, 1917, and 1916, by classes of accepting institutions 164 No. 31. Held by all Federal Reserve Banks combined at the end of each month in 1920, by classes of accepting institutions.... 165 United States securities— No. 32. Average daily holdings of each Federal Reserve Bank, by months during 1920, with monthly totals for all banks combined for 1919, 1918, and 1917 166 No. 33. Held by each Federal Reserve Bank on December 31, 1920, with totals for all banks combined for 1919, 1918, and 1917, distributed by classes and maturities 167 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

VI TABLE OF CONTENTS. CONDITION OF FEDERAL RESERVE BANKS—Continued. Rates of earnings— Page. No. 34. Average daily holdings of each class of earning assets, earnings therefrom, and annual rates of earnings of each Federal Reserve Bank during 1920 and 1919 168 No. 35. Annual rates (per cent) of earnings on total earning assets of each Federal Reserve Bank, by months during 1920, with annual rates for each Federal Reserve Bank and monthly rates for all Federal Reserve Banks combined for 1919, 1918, and 1917 172 DISCOUNT AND OPEN MARKET OPERATIONS: Total volume—all classes— No. 36. Of each Federal Reserve Bank during 1920, with totals for 1919 and 1918, distributed by classes 173 No. 37. Of all Federal Reserve Banks combined, by months during 1920, distributed by classes 174 No. 38. Of each Federal Reserve Bank, by months during 1920, with total by months, and by Federal Reserve Banks for 1919 and 1918 175 Discounted bills— No. 39. Discounted by each Federal Reserve Bank during 1920, by months and maturities 176 No. 40. Discounted by each Federal Reserve Bank during 1920, distributed by classes, with average rates and maturities of total bills discounted by each bank 180 No. 41. Volume by States; also number of member banks in each State and number accommodated through discount of paper during 1919 and 1920 181 No. 42. Discounted by each Federal Reserve Bank for national banks and for State bank and trust company members during 1920 and 1919 184 No. 43. Member banks' collateral notes and customers' paper secured by Government war obligations discounted by each Federal Reserve Bank, by months during 1920, with totals by banks and months for 1919 and 1918 184 No. 44. Trade acceptances discounted by each Federal Reserve Bank, by months during 1920, with totals by banks and months for 1919, 1918, and 1917 185 No. 45. Bankers' acceptances discounted by each Federal Reserve Bank, by months during 1920, with totals by banks and months for 1919 186 No. 46. Discounted by each Federal Reserve Bank during 1920, by normal rates of discount charged 186 No. 47. Number of banks in each district accommodated through the discount of paper, by months during 1920, with totals by banks and months for 1919, 1918, and 1917 187 No. 48. Average rate (per cent) charged on all bills discounted by each Federal Reserve Bank, by months during 1920, with average rates by banks and months for 1919 and 1918 188 No. 49. Average maturities (in days) of all bills discounted by each Federal Reserve Bank, by months during 1920, with average maturities by banks and months for 1919 and 1918 188 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. VII DISCOUNT AND OPEN MARKET OPERATIONS—Continued. Purchased bills—Bankers' and trade acceptances— Page. No. 50. Purchased in open market by each Federal Reserve Bank, by months during 1920, with totals by banks and months for 1919, 1918, and 1917 189 No. 51. Purchased in open market by each Federal Reserve Bank during 1920, by maturities 190 No. 52. Purchased in open market by all Federal Reserve Banks combined during 1920, by months and maturities 191 No. 53. Purchased in open market by all Federal Reserve Banks combined during each month in 1920, distributed by classes, with totals by classes for 1919 192 No. 54. Purchased by each Federal Reserve Bank during 1920, by rates of discount charged 192 No. 55. Average rate (per cent) charged on all bills purchased by each Federal Reserve Bank, by months during 1920, with average rates by banks and months for 1919 194 No. 56. Average maturities (in days) of all bills purchased by each Federal Reserve Bank, by months during 1920, with average maturities by banks and months for 1919 195 Inter-Federal Reserve Bank accommodation— No. 57. Rediscounts and sales of bills between Federal Reserve Banks during 1920—Chronological table 196 Summary, by months, of bills re discounted and sold by each Federal Reserve Bank during 1920 203 Summary for the year, by Federal Reserve Banks 204 Treasury certificates— No. 58. United States certificates of indebtedness purchased by each Federal Reserve Bank, by months during 1920, with monthly totals for 1919 and 1918 205 GOLD SETTLEMENT FUND: No. 59. Summary of transactions January 1 to December 31, 1920 206 No. 60. Weekly operations through the banks' gold settlement fund during 1920 208 No. 61. Changes in ownership of gold through transfers and settlements, by weeks during 1920 212 CLEARING SYSTEM: No. 62. Operations of the Federal Reserve clearing system during 1920.... 216 PAR LIST: No. 63. Number of member banks, and of nonmember banks on par list, in each Federal Reserve district, as of the 15th of each month, in 1920 218 EARNINGS AND EXPENSES: No. 64. Earnings and expenses of each Federal Reserve Bank 220 FISCAL AGENCY DEPARTMENT EXPENSES: No. 65. Expenses of each Federal Reserve Bank and reimbursements received from United States Treasury 223 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

VIII TABLE OF CONTENTS. Page. Receipts and disbursements of the Federal Reserve Board 224 State banks and trust companies admitted to membership 228 Abstract of condition reports of State banks and trust company members 253 Fiduciary powers granted to national banks 255 Banks granted authority to accept drafts and bills of exchange up to 100 per cent of capital and surplus 267 Personnel and salaries: Salaries of officers and employees of Federal Reserve Banks 272 Salaries of officers and employees of Federal Reserve Board 275 Salaries of national bank examiners 278 Directory: Federal Reserve Board 281 Officers and directors of Federal Reserve Banks 281 Federal Advisory Council 288 Regulations of the Federal Reserve Board 288 Amendments to Federal Reserve Act and Clayton Antitrust Act 315 Summary of all amendments to Federal Reserve Act 318 Acts of State legislatures in opposition to par collection system 327 Opinion of Circuit Court of Appeals in Atlanta par collection case 330 Reply of Federal Reserve Board to Senate resolution relative to check clearing. 335 CHARTS. Currency received from and paid to member and nonmember banks by the Federal Reserve Banks 134 Movement of earning assets of all Federal Reserve Banks during 1920 142 Net deposits, Federal Reserve note circulation, total reserves, and reserve percentages of all Federal Reserve Banks during 1920 143 Accommodation received from or extended to other Federal Reserve Banks... 145 Required and excess reserves during 1920 154 Average daily holdings of discounted bills and of other earning assets by each Federal Reserve Bank: During 1919 170 During 1920 171 Operations through the gold-settlement fund during 1920 210 Operations of the Federal Reserve Bank of New York through the gold-settlement fund during 1920 211 PART II. Reports of Federal Reserve Agents to the Federal Reserve Board 361-596 District No. 1—Boston 361 District No. 2—New York 379 District No. 3—Philadelphia 404 District No. 4—Cleveland 424 District No. 5—Richmond 439 District No. 6—Atlanta 458 District No. 7—Chicago 477 District No. 8—St. Louis 494 District No. 9—Minneapolis 515 District No. 10—Kansas City 534 District No. 11—Dallas 554 District No. 12—San Francisco 574 PART III. Recommendations of the Federal Advisory Council, 1920 597 Description of Federal Reserve districts 610 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

THE FEDERAL RESERVE BOARD. DECEMBER 31, 1920. DAVID F. HOUSTON, ex officio, W. P. G. HARDING, Governor. Secretary of the Treasury, Chairman. EDMUND PLATT, Vice Governor. JOHN SKELTON WILLIAMS, ex officio, ADOLPH C. MILLER. Comptroller of the Currency. CHARLES S. HAMLIN. D. C. WILLS. 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 16, 1921. SIR : The Federal Reserve Board has the honor to submit its seventh annual report, which relates to operations for the calendar year ended December 31, 1920. The past year has been essentially a period of reaction. The year immediately preceding was characterized by an unprecedented orgy of extravagance, a mania for speculation, overextended business in nearly all lines and in every section of the country, and general demoralization of the agencies of production and distribution. Beginning with abnormally large importations of gold in 1915, the course of world events forced upon this country during a period of five years the greatest expansion it has ever known. It was universally realized that there would be sooner or later reaction and readjustments, and those who recalled the effects of readjustment after former periods of great expansion and abnormal activity regarded the future with grave apprehension. While indications that the country was approaching a readjustment period were not lacking during the closing months of the year 1919, it was not until the spring of 1920 that it became generally recognized that reaction had set in and that the country was passing through the most acute stage of transition from wartime delirium to the more normal conditions of peace. This process of readjustment began almost simultaneously throughout the world, and its effects have been more far-reaching and drastic in other countries where the inflation of bank credit and currency" was more pronounced than in the United States. The process necessarily has been painful, but it was inevitable and unavoidable, and in view of world-wide conditions could not have been long deferred in this country by any artificial means or temporary expedients which might have been adopted. In meeting the strain to which our domestic banking system has been subjected, a strain which always accompanies the economic and financial changes which follow a period of great expansion, no resort was made to credit curtailment or to contraction of the currency. The precautionary steps which were taken during the year 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 ANNUAL REPORT FEDERAL RESERVE BOARD. did not produce deflation, but they checked the expansion which had been proceeding at a dangerous rate and prevented a larger measure of distress than has actually occurred. As the year closed there were many indications that business generally was beginning to adjust itself to new conditions and was preparing to proceed on a sounder and saner basis. The most trying and critical stage of readjustment was passed before the end of the year and the situation at its close was intrinsically better than at its beginning. Then it was foreseen that the developments which have occurred were impending and the future was regarded with uneasiness and apprehension. Now it is generally recognized that the crisis has been passed and that the country has regained a more normal state of mind, which is of first importance in working back toward normal conditions; and looking to the future, a spirit of greater confidence prevails. Because of the universal and sweeping changes wThich took place during the year and of the rapidity with which they occurred, the year 1920 will be ranked as one of the most eventful in economic history. It does not appear inappropriate, therefore, in making a report of the operations of the Federal Reserve System during the year and in discussing the policies controlling those operations, to review the underlying causes and immediate effects of the reaction which has taken place. Hitherto periods of rapid readjustment, such as were witnessed during the past year, have invariably been accompanied by severe financial disturbances or money panics. The absence of such developments in the United States during the past year must therefore be regarded as the strongest proof of the efficiency and stability of our present banking system, and of its ability to absorb the shock and avert the disaster which in other times has overtaken the country. In previous periods of abnormal activity, industry and commerce, although dependent upon credit conditions, generally have been more nearly self-sustaining than was the case when the recent wave of expansion was at its crest. At such times no doubt commercial and industrial activities were less affected by those influences which bear directly upon the credit situation. Differences .of opinion have always existed among economists as to the extent to which credit modifications have been the cause, and as to the measure in which they are to be regarded as the effect of industrial changes. Relationships between credit and business have always been complex and often justify differences of opinion. During the past year, however, the course of events presents a picture of world-wide change proceeding from profound economic causes in which credit appears as only one of a group of major factors. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 3 It is, however, true that in periods of transition, when marked changes in business conditions are taking place, there is a disposition to shift responsibility for disappointment or'misfortune upon the credit system, thus magnifying its true function as a regulator of commerce and business into the role of a savior or else a destroyer of industrial prosperity. Such conclusions proceed from a superficial and inadequate view of the general economic situation and its resultant problems. No thorough analysis of the causes of present conditions in the field of banking and finance can be made without a clear understanding of basic facts relating to commerce and industry. With these first surveyed and with the facts regarding extension of credit, both by the member banks and by the Federal Eeserve Banks, briefly outlined, it will be possible to obtain a more accurate idea of the influences affecting the general course of business and finance in the United States during the year 1920 and of the effect of these influences. The developments during the year 1920 all over the world have been along lines of industrial and commercial readjustments. There are several measures or tests which may be applied in order to ascertain the character and scope of these readjustments. Of these, one of the most obvious and familiar is the volume of production. Viewed from the standpoint of the volume of commodities made available for consumption, the year 1920 was one of plenty. As is well known, the outturn of primary wealth—farm products and raw materials in general—has been of more than average volume. According to the figures of the Department of Agriculture, the corn crop of 1920 was the largest ever produced; the production of cotton larger than that of any year since 1914, while that of wheat was surpassed only five times in the history of the country. The production of other staples was almost without exception beyond the average. While figures approximately accurate are available as to agricultural production, the record of the year with respect to manufactured products is not so clear. Some investigators, however, have reached the conclusion that the output of the mills and factories was probably near the maximum about May 1. Indications are that in distinctive manufacturing and industrial lines there had been, following the cessation of heavy production for war purposes, a decrease in output and a readjustment of its character, which continued for several months following the armistice. During this time the requirements of buyers did not conform to market conditions, but there subsequently developed shortages in various lines, which were followed by a considerable increase in productive activity, while in some lines, such as textiles, a sellers' market eventually developed. This period Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. of greater production reached its peak during the early months of the year, since which time a decline in production has been in evidence, as is shown*by the following table: Decem- March, October, December, 1919. 1920. 1920. ber, 1920. Live stock receipts at 15 western markets (in thousands of head) 6,992 5,072 5,355 4,992 Grain receipts at 17 interior centers (in thousands of bushels)... 76,805 67,941 95,955 75,058 Cotton sight receipts (in thousands of bales) 2,219 797 1,467 l5$0 Lumber shipments reported by 3 associations (in millions of feet) 633 910 699 515 Anthracite coal production (in thousands of short tons) 8_,0,8 _9_ 7,857 8,069 8,321 Bituminous coal production (in thousands of short tons) ! 3666,61122 46,792 50, 744 52,565 Crude petroleum production (in thousands of barrels) ! 32,508 35,831 39,592 38,961 Pig-iron production (in thousands of long tons) j 2,633 3,376 3,293 2,704 Steel-ingot production (in thousands of long tons) \ 3,299 3,016 2,340 Cotton consumption (in thousands of bales) j 512 576 400 295 W ool consumption (in thousands of pounds) 55,566 58,345 33,704 All industries have not been affected alike, however, the decline having been most marked in leather and textiles, while steel industries have only recently shown that they are affected by the same influences. The decrease in unfilled orders on the books of large iron and steel industries which has been in progress since August indicates not only a relative decline in the activity of these basic industries, but also of other industries dependent upon them for material. How far the actual shrinkage in production has gone in the aggregate can be estimated only, but some light on the situation is given by the Board's index of production which follows. In order to show the changes in productive activity, there are presented below four tables showing relative figures of the movement of live stock, grain, and cotton during the year 1920; of the production of anthracite and bituminous coal and crude petroleum; and of the output of pig iron and steel ingots; also absolute quantities of cotton and wool consumed. Movement of agricultural products, [Monthly average, 1911-1913=100.] r L 1 e 5 i c v e w e i - p e s t t s o s t e c a r k t n 1 G c 7 e r i a i p n i t n t s e r r a e i t o - r C s o ig tt h o t n markets. centers. receipts. Average for year 1918 127 129 74 Average for year 1919 129 106 84 Average for year 1920 .. . 111 97 72 1920. January 139 100 126 February 102 94 87 March 110 87 64 April . . 90 57 44 Mav 112 72 29 June... 110 88 21 July 100 96 29 August 109 115 25 114 141 62 O ctober 116 123 117 November. 129 98 144 December 105 96 126 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. Coal and petroleum production. [Monthly average, 1911-1913=100.] Anthracite Bituminous Crude coal pro- coal pro- petroleum duction. duction. production. Average for year 1918 Ill 130 155 Average for year 1919 99 103 164 Average for year 1920 . 100 125 1920. January 103 131 176 February 91 112 177 March 106 126 187 April 84 102 186 May 108 107 190 June 110 118 193 July 112 123 199 August 108 131 204 September 63 138 196v October 109 137 207 November 101 138 202 December 112 142 203 Iron and steel production. [Monthly average, 1911-1913=100.] Average for year 1918 Average for year 1919 Average for year 1920 1920. January.. February." March.. A p ril May June July August September October November December Cotton and woolen consumption. [Pounds.] Cotton con- Wool consumption. sumption. Average for year 1918 257,356,000 50,429,835 Average for year 1919 246,646,500 45,257,215- Average for year 1920 243,330,500 1920. January 295,960,500 63,059,862 February 257,849,500 55,247,652 March 287,894,500 58,344,602 April .' 283,457,000 57,887,832 May 270,688,500 50,649,381 June 277,577,500 40,679,920 July 262,744,500 32,372,064 August 241,596, 500 32,849,956 September 228,823,500 30,928,337 October 199,918,500 33,703,523 November 166,028,500 24,150,141 December 147,425,500 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6 ANNUAL REPORT FEDERAL RESERVE BOARD. Summarizing the facts thus reviewed, it will be seen that after the peak of war production had been reached by speeding up all available energies during the closing months of the war, there was a sharp decline in activity, which continued during the uncertain months following the armistice and well into the year 1919 until the flotation of the Victory loan. A gradual expansion then developed, which culminated in much higher production early in the year 1920, and during this time the inability of the railroads to provide adequate transportation facilities brought about an unusual and serious congestion at initial points. This circumstance was due partly to an unusually severe winter, and partly to the renewed increase of production and a larger volume of goods to be shipped. All the factors of the situation taken together brought about an accumulation of commodities until the late spring and early summer, when, as the result of more favorable weather and better transportation facilities, delayed consignments began to reach the markets in volume, but too late for sales on terms as advantageous as probably would have been obtainable had they reached distributors earlier and in a normal way. INDUSTRY AND PRICES. The course of prices during the year 1920 has been extraordinary and the effects far-reaching. About the time when production reached its postarmistice peak—that is, in the early spring—a tendency toward reaction in prices became evident in several countries. Among the first indications of this tendency may be noted the collapse of the silk market in Japan and the public protest against current prices for clothing, which had as one of its manifestations the short-lived movement to wear overalls. These events were followed later by depression in Cuba and other Latin-American countries, due to rapid declines in sugar, coffee, and other staples produced in those countries. There are presented in the table following the index numbers of prices compiled by the Board from American data and obtained from information supplied by foreign correspondents, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. Wholesale price indexes. [Average prices, 1913=100.] 1920 Nov.Mar. 1918. 1919. Jan.Feb. Mar.Apr. May June JulyAug.Sept. Oct.Nov. Dec United States: Federal Reserve Board index 191 242 242 248 203 204 258 250 234 226 208 190 171 Bureau of Labor Statistics.. ?ftfi 201 248 249 ?,53 ?65 27?. ?m 262 250 ?A?, 225 207 1X9 United Kingdom, Statist index 229 217 30n 307 313 ,W> 300 ?00 298 292 282 263 243 France 358 337 487 522 555 588 550 493 496 501 526 502 460 434 Italy 437 324 504 556 619 679 659 615 613 632 660 662 658 635 Sweden 307 354 319 342 354 354 361 366 363 365 362 346 331 ?m Canada 215 205 248 254 258 261 263 258 256 244 241 ?M 2?5 314 Japan . . 210 202 301 313 321 300 271 247 239 235 230 226 221 ?0f> India 218 209 198 200 210 206 209 209 208 206 194 180 Australial 172 169 203 206 209 217 225 233 234 236 230 215 208 197 1 Trices, July, 1914=103. During the year the country as a whole experienced a very serious economic dislocation, the ultimate and inevitable outcome being a general suspension of buying which eventually resulted in greatly reducing the demand for commodities, thus making it impossible for producers and manufacturers to dispose of their goods on the market in the same volume as before. Had manufacturing industries been able to continue to export their entire surplus as had been the case during the years of war financing both before and after the armistice, this situation might not, perhaps, have immediately affected the marketing power of these enterprises, although eventually it was certain to do so. However, changes in foreign trade conditions contributed directly to the creation of a surplus which could not be disposed of abroad and which was therefore entirely dependent upon the home market. On previous occasions of business readjustment or transition it usually has been possible to locate some definite point at which th& break in prices and decline in speculation in commodities had taken place. In the present readjustment the beginning undoubtedly must be noted in the Japanese silk market. Almost simultaneously with the collapse of the silk market in Japan there was a radical revision of prices in Germany. The situation in that country had from the beginning of the year been precarious, being characterized by great disparities between domestic and foreign prices of German goods. These disparities taken in conjunction with the unsettled state of foreign exchange led to unwholesome and extensive exportations of German goods, especially to France and England. The conditions were so artificial that attention was speedily directed to them, resulting in radical price revisions and the abnormal activity rapidly settled down to a state of depression. It is difficult to determine exactly how far this condition of business in Germany reacted upon Digitized for FRA4S5E5R25 °—21 2 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 ANNUAL. REPORT FEDERAL RESERVE BOARD. conditions in other countries, but it undoubtedly produced a profound effect. Not only in the Far East, therefore, but also in that country which perhaps felt most keenly the financial and economic consequences of war was a severe shock administered to the growth of postwar inflation and overtrading. This reaction setting in almost simultaneously, both in Europe and in the Orient, came at a time when production during the postarmistice period had probably reached its height and when also prices in most countries were at the peak. It was a situation which made readjustment inevitable— a readjustment which must take effect not merely in prices but in every division of economic life. As production had been increasing during the summer and fall of 1919 and the spring of 1920, there was at least a tendency in some lines to what may be termed " overproduction " in a relative rather than an absolute sense, as excessive supply was due mainly to reduced consumption. In these circumstances the equilibrium of prices could have been maintained only through an increased or at least sustained buying power, as well as disposition to buy on the part of the public, which, however, was not existent. Consequently, it became evident after the end of the first quarter of the year that the buying or consumptive power was not sufficient in volume to absorb the greater quantities of goods which were being steadily produced and offered to the public. The practical question accordingly arose whether reductions in prices would not be necessary in order to move the current output of manufactured goods. In some lines an effort was made to solve the problem through a voluntary restriction of production, but it soon became evident that such measures were inadequate, and accordingly substantial reductions in prices of some articles which had reached a high level were announced by producers. Striking examples of these tendencies were seen in textiles, automobiles, shoes and leather goods of all kinds, and in a variety of other manufactures. The decline in wheat and breadstuffs generally has been ascribed by some to the relinquishment of the Government control of wheat prices on June 11, 1920, followed by the reestablishment of openmarket trading. The Federal Trade Commission has recently made a report in which economic causes which have led to the decline are clearly set forth. As a matter of fact, the decline has been more marked in many commodities which have never been the objects of price control. In metals, rubber, oils, cotton, and fabrics of all descriptions and throughout a large range of other commodities, the prices of some of which had been fixed, while the others were sold without restrictions, the downward movement of prices has been even more marked than in grain and flour and represents a. combination of influences. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL KEPOET FEDERAL RESERVE BOARD. 9 In the following table the prices of some of the more important staples are compared at their postarmistice peak with the lower levels established during the downward movement which extended over the last half of the year 1920. Prices of leading commodities (averages for the month). Peak since armistice. June. July. Aug. Sept. Oct. Nov. j Dec. Wheat, No. 2 red winter, cash, May, 1920. $2. 98 $2. 9012. 8182.47 $2.49 $2. 2012. 06 | $2.01 Chicago, bushel. Cotton, upland middling, New Apr., 1920. .41 .41 .40 .35 .29 .21 .18 .15 Orleans, pound. Wool: Ohio fine unwashed delaine, Mar., 1920. 1.00 .80 .70 .68 .63 .65 .60 .51 .50 Boston, pound. Ohio J blood unwashed, Dec, 1918. . 79 .55 .47 .43 .40 .40 .38 .28 .30 Boston, pound, Hides: Packer, heavy native steers, Oct., 1919. .48 .36 .30 .28 .29 .26 .22 ,20 Chicago, pound. Calf, selected 7-9 pounds, Nov., 1919. 10.13 5.75 4.06 3.65 3.25 2.69 2.42 1.85 1.75 New York. Silk, Japanese filature Shinshu, Feb., 1920. 16.85 11.35 8.35 7.40 5.60 6. 80 6.53 6.50 5.90 No. 1,13-15, New York,pound. Rubber, first Paiex crepe, New Feb., 1919. .57 .39 .38 .32 .31 .26 .24 .19 .17 York,pound. Sugar, raw, 96° centrifugal, net May, 1920. .21 .21 .20 .18 .13 .11 .08 .07 | .05 cash, New York, pound. Pig iron, basic, Mali ning and Sept., 1920. 48.50 43.25 44.00 45. 7548.10 48.50 43.75 36. 50 33.00 Shenango Valley furnace, pound. Copper, electrclitic, New York, Nov., 1918. .26 .18 .18 .19 .18 .18 .16 .14 .13 pound. Petroleum, crude mid-continent Mar .-Oct., 3.50 3.50 3.50 3.50 3. 50 3.50 3.50 3.50 3.50 at wells, barrel. 1920. In considering the trend of prices, crop yields of the year should not be overlooked. The final estimate of production of farm products for the year which the Department of Agriculture issued on December 9, 1920, is as follows: 1914-1918, 1920 5-year production, average. final estimate. Corn „ bushels.. . l GO 3232,367,000 Winter wheat .do 577,763,000 Spring wheat do. 74S, (oO 209,305,000 All wheat do 8^2,, "b,0 0 787,128,000 Oats do. 526,055,000 Barley do. '21% 8^ >,0,0 202,024j000 Rye ...r do. 000 69,318,000 Buckwheat do.. 13,789,000 Potatoes do. 430,458,000 Sweet potatoes do.. r J ( ( Q 112,368,000 Flaxseed do.. 12, "* * v)0 10,990,000 Rice do.. 53,710,000 Tobacco .pounds 1, JS7 508,064,000 Hay, tame. tons 4 ) « ,^ 91,193,000 Hav, wild do j 17' 17,040,000 Alf hav do. 108,233,000 Cotton...' bales.. j v'/ ,(H/0 12,987,000 Apples, total crop bushels u S . 00 240,442,000 Annies' commercial barrel; 36,272,COO P~ ea • bust e'ls 43,697,000 Pears do. > 4 . 00 17,279,000 Beans, dry, 6 States do. 21 >, V)IJL> 9,075,000 Grain sorghums, 7 States do. 143,939,000 Peanuts do. 35,960,000 Sugar bests tons. 6,051,000 8,545,000 Broom corn do... 33,900 Sorghum (sirup) gallons. 43,876,000 Hops pounds. 38,918,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 ANNUAL REPORT FEDERAL RESERVE BOARD. READJUSTMENT A WORLD-WIDE PROCESS. From the data, already submitted it is clear that a downward movement of commodity prices had developed in all countries during the spring and summer of 1920 and that this reaction was due to faulty or failing distribution, and this in turn was mainly the result of lessened ability or greater reluctance on the part of wage earners and those with fixed incomes to buy as freely as in the past, together with increased productive capacity, although in some cases goods produced were not of the kind and quality which were most salable. This phase of the situation can be understood better when it is remembered that during the war industry had been thoroughly reorganized and that consumption had, through the application of wholesale governmental requirements, been shifted from its ordinary or normal channels into those of war demands. Owing to changes in the productive situation the course of business activity assumed a direction entirely different from that which normally it would have taken, and as governmental regulations were relaxed or rescinded demand and consumption were gradually relieved of the control exercised through these means. Thus there was unavoidably a more and more serious lack of adjustment between the activities of producers and the demand of consumers as exhibited in the use of their buying power. "Overproduction" in the sense of badly adjusted production-— excess production in some lines as contrasted with others in which production had been insufficient—was consequently characteristic of the industrial situation in the various countries, including the United States, at the beginning of the summer of 1920. These conditions might gradually have righted themselves without very serious effects or without the necessity for drastic readjustment but for the fact that practically all countries were passing through the same change, and they were therefore unable to assist one another by purchasing. At the same time the credit mechanism of the world had already been strained almost to the limit. The removal during the year 1920 of many of the governmental restrictions upon prices and the movement of commodities also had its effect. On June 11, 1920, Government control of grain prices was abrogated and unrestricted transactions in grain were again permitted. In June the British Government terminated its control of the wool market in Australia and modified its policy of intervention in other directions. Thus the midyear of 1920 was a striking industrial turning point for the reason that at this time important governmental restrictions involving financial control and support of various markets were withdrawn. As these changes in governmental policies were coincident with overstrained credit conditions and with relative overproduction in many lines, a situation was created which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 11 initiated readjustment in prices and in business practically everywhere. It is worthy of note that these conditions did not originate in the United States, but that this country was one of the last to feel them acutely, and that so far it has felt them only in a much more moderate degree than has been the case elsewhere. THE CONTROL AND REGULATION OF CREDIT. The determination of the policy pursued by the Federal Reserve System in the face of conditions described was necessarily from the outset a matter of profound importance. The development of such conditions had long been foreseen by the Board and its policy was shaped with a view of meeting them, and, as far as possible, of minimizing injurious effects. Up to the time the United States entered the European war, there was no general appreciation of the ability of the Federal Reserve System to meet the requirements of such a great emergency. The question was whether it or any other system could raise and distribute the enormous loans necessary and could care for the vast public financial operations which were the inevitable concomitants of a great war. It required only a short time, however, to convince even the most dubious of the credit capacity of the Federal Reserve System and to demonstrate the smoothness and efficiency of its operating mechanism. In fact, so readily did the new banking sjT-stem respond to the demands made upon it during the early months of the war that there were many who were alarmed at its power to expand credit. The system was looked upon by many as an engine of inflation and doubts of its ability to restrain undue expansion at the proper time were frequently expressed. The Federal Reserve Board, however, has always been mindful of the credit and banking conditions which were developing in the United States and has never failed to take account of the consequences-of its discount policies. From the outset, it recognized its duty to cooperate unreservedly with the Government to provide funds needed for the war and freely conceded that the great national emergency made it necessary to suspend the application of weli-recognized principles of economics and finance which usually govern banking operations in times of peace. War is the most uneconomic of all processes. But, as soon as the armistice put an end to the war, the Board made a new survey of the situation in order to determine what could and should be done to check undue and unnecessary expansion of credit. During the year 1919 this question was under constant consideration and it was hoped that the banks of the country would themselves see the wisdom of working back toward a more normal condition. From time to time the Board issued statements in which its view of the situation was given and banks were warned of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 AlST^UAIi REPORT FEDERAL RESERVE BOARD, consequences to be expected from a policy of constant overexpansion which could be continued only by resorting to the rediscount facilities of the Federal Reserve Banks. These warnings, however, were only a transitory expedient and were given only momentary attention by many, banks. The Board was prepared, as soon as Treasury exigencies permitted, to resort to the well-known method of advancing the rate of discount. The effects of the first advance of the rate of discount were reviewed in the Board's annual report for the year 1919, but it was only during the year 1920 that the necessity for the development of this policy and the application of sound principles governing banking credit have been most clearly reflected. In the situation which existed ordinary prudence dictated plainly that not only should speculation in corporate stocks and securities be restricted but that further expansion of banking credits made against goods and commodities in storage should be checked. The loans and advances of a Federal Reserve Bank should be as nearly as possible of a self-liquidating character. Continued advances against unsold goods in storage would tend inevitably to involve the banking system in the needless risks and difficulties growing out of general changes in business conditions without improving in any respect the situation as a whole or relieving those obliged to reduce prices or curtail production in order to stimulate the demand necessary to move commodities from producer to consumer. The Board's purpose was to maintain the strength of the Federal Reserve Banks, which are the custodians of the lawful reserves of the member banks. It was not the Board's intention to deny proper accommodation to agriculture, commerce, and industry, for any such limitation would defeat the very object of its policy. Rates were advanced at all Federal Reserve Banks during the latter part of January, several months before the slowing down in industry took place and several weeks before ground was broken for the new crops. Toward the end of May, in order to discourage applications for rediscounts for nonessential purposes, the Board deemed it expedient to approve an advance in the discount rates of some of the Federal Reserve Banks to 7 per cent for paper of 90 days' maturity. Since the early part of June there have been no changes in discount rates, except the discontinuance of the progressive rate and the coincident establishment of a 7 per cent rate on commercial paper by one of the banks. The action taken by the Secretary of the Treasury in advancing the rate on Treasury certificates of indebtedness to 5| per cent for 6 months9 maturity and to 6 per cent for 12 months' maturity has placed Treasury borrowings more nearly upon a basis of parity with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 13 current market rates and has made it possible to place these obligations in large volume with private investors, thus relieving the banks of a substantial part of the burden formerly carried by them. Much attention has been directed in current discussions of the Federal Reserve System to discount rates and to the changes in the investment market that have occurred during the past year. These changes have often been represented as the outcome of policies of the Federal Reserve Board. So generally does a misunderstanding of the facts appear to exist, that it is deemed proper to outline briefly the situation as it developed. In the table appearing below are given the discount rates of the Federal Reserve Banks as approved by the Board and in effect on December 31, 1920, and December 31, 1919. Discount rates of each Federal Reserve Bank in effect on December 31, 1920 and 1919. Paper maturing within 90 days. Agricultural Secured by— Bankers' and liveacceptances stock paper maturing maturing Federal Reserve Bank. c T er r t e if a i s c u a r t y es bo L n ib ds e r a ty nd acc T ep r t a a d n e c es.: ! ot A he ll r. 1 m wi o t n h t in h s 3 . a b f 0 t u e m t r w o 9 n 0 it t d h h a i s n y . s of indebt- Victory edness. notes. 1920 1919 1920 1919 1920 1920 1919 Boston If 4? New York 4| Philadelphia 4| C R l i e c v h e m la o n n d d 3 2 6 6 II 4* i i i 4 A C S l t t i . l i a e L a n o g t u a o is 3 8 0 6 3, a 1 14 i - f | Minneapolis K Da a l n l s a a s s Cit3r 44 4 54. 3.1 I San Francisco 36 5 I 42 42 I 1 Rates on paper secured by War Finance Corporation bonds, established in April, 1919, at 1 per cent ii so ess of the discount rates on commercial paper of corresponding maturities, were discontinued effectiv :pr. 1, 1920. It will be seen that advances have been made of from -J per cent to 2J per cent, varying with the maturity and character of the paper offered for discount. It has been stated frequently, but erroneously, that the effect of these advances was to reduce the total volume of credit available and to contract the amount of currency in circulation. That these statements are unwarranted will be shown by a glance at the following table, in which the principal items of assets and liabilities of the Federal Reserve Banks are presented. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 ANNUAL REPORT FEDERAL RESERVE BOARD. Principal asset and liability items of the 12 Federal Reserve Banks, [In rail lions of dollars.] Jan. 30. i Feb. 27. Mar. 5 Apr. 30. ! May 28. June 25. Reserves: Total 2,074 2,083 2,057 2,071 2.092 2,109 Gold 2,013 1^967 1,935 1,937 1,'953 ! 1,969 Bills discounted: Total 2,174 2,454 2,449 2,535 2,519 2,432 Secured "by Government war obligations. 1,458 1.573 1,441 1,465 1,448 1.278 All other.'. 716 ' 881 1,008 1,070 1,071 1* 154 Bills bought in open maiket 561 531 '452 407 419 399 Certificates of indebtedness 276 268 263 267 280 325 Total earning assets 3,039 3,279 3,191 3,236 3,244 3,183 Government deposits 73 134 28 36 14 Members' reserve deposits 1,851 1,872 1,867 1,860 1,853 1,832 Net deposits 1, S07 1,884 1.773 1,813 1,795 1.723 Federal Reserve notes in circulation 2, 851 3,020 3; 048 3,075 3,1.07 3;' 117 Feder a 1 Reserve B ank notes in cir cul ation 251 201 178 179 186 Reserve percentage 44.5 i 42° 5 42.7 42.4 42.7 43.6 July 30. Aug. 27. Sept. 24 Oct. 29, Nov. 26. Dec. 30. Reserves: Total 2,129 2,128 2,152 2.168 2,195 2.249 Gold 1,978 1,972 1,990 2; 003 2,024 2; 059 Bills discounted: Total 2,492 2, 6€7 2,704 2,801 2,735 2,719 Secured by Government w ar obligations 1,241 1,315 1.220 1.204 1,192 1,141 All other 1,251 I 1,352 I,'484 1,597 1.543 1,578 Billsboughtin open market 345 322 308 298 '248 256 Certificates of indebtedness 299 274 271 269 294 261 Total earning assets 3,162 3,290 3,310 3,396 3,-504 3,263 Government deposits 12 44 46 19 16 28 Members' reserve deposits 1,808 1, S19 1,801 1, 806 1,712 1,749 Net deposits 1,697 1,718 1,658 1,675 1,624 1,604 Federal Reserve notes in circulation 3,120 3,204 3,280 3,351 3,326 3,345 Federal Reserve Bank notes in circulation.. 192 201 214 215 215 217 Reserve percentage 44.2 43.2 43.6 43.1 44.4 45.4 A study of the foregoing figures will show that, as far as the resources and liabilities of the Federal Reserve Banks are concerned, the effect of the Board's action in authorizing increases in discount rates, even assuming that this action was a direct influence tending to affect the gross volume of transactions, was merely to slow down the immediate tendency toward expansion. From the end of February until they reached the peak for the year on November 5, except for the temporary and nsual fluctuations which result from the quarterly income and excess profits tax payments made to the Government, the loans of Federal Reserve Banks have continued substantially at their present level. On December 80, 1920, the loans had declined by $108,000,000 from their high point and Federal Reserve note issues outstanding had declined by $60,000,000, but the percentage of reduction is so slight as to represent only a negligible fraction of the total amount of credits extended. The member banks of the Federal Reserve System, which have direct dealings with the public, and whose transactions may be regarded as reflecting in some degree changes of policy of the Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL EEPOBT FEDERAL RESERVE BOARD. 15 Reserve Banks, have during the year extended very full lines of credit to their customers. The statistics presented in the following table, which are compiled from figures furnished by the member banks in the larger cities, show the volume of credit furnished by these institutions and the amounts borrowed by them from the Federal Reserve Banks. [In millions of dollars.] Loans (including re- Redisdiscounts) counts and and invest- bills pay- Net ments (ex- able with demand cluding Federal deposits. United Reserve States Banks. securities). Jan. 30. 14,777 1,834 11,481 Feb. 27. 14,924 2,143 11,463 Mar. 26. 15,271 2,114 11,496 Apr. 30. 15,249 2,136 11,464 May 28. 15,262 2,060 11,561 June 25. 15,371 1,946 11,347 July 30. 15|3£5 1,973 11,401 Aug. 27. 15,429 2,128 11,252 Sept. 24 15,692 2,151 11,161 Oct. 29. 15,052 2,244 11,172 Nov. 26. 15,311 2,174 10,892 Dec. 31. 15.359 2,098 10,942 AGRICULTURAL CREDITS. The impression has prevailed in some quarters that agricultural credits in particular have been greatly curtailed during the past year. On December 14 the Board received a letter from the chairman of the Senate Committee on Agriculture and Forestry requesting information as to the amount of actual agricultural paper rediscounted during the years 1919 and 1920, based on agricultural production and sales of the respective years. Section 13 of the Federal Reserve Act provides that notes, drafts, and bills of exchange drawn or issued for agricultural purposes, or based on live stock, having a maturity of not longer than six months, are eligible for rediscount by a Federal Reserve Bank, the limit of maturity in all other cases being 90 days. The Federal Reserve Banks also rediscount large amounts of agricultural paper which has a maturity of not exceeding 90 days. In response to the inquiry made by the Senate committee the Board called for reports from the Federal Reserve Banks, and the figures which are submitted in the subjoined table, while necessarily based on estimates, show conclusively that instead of there having been curtailment in agricultural credits extended by the Federal Reserve Banks during the year 1920, the volume of such credit's was nearly three times as great as the volume so extended during the year 1919. The figures given below do not include any estimate from the Federal Reserve Bank of New York, which has occasion to rediscount only a negligible amount of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 AlSnSTTTAL REPORT FEDERAL, RESERVE BOARD. farmers9 paper. It is known, however, that member banks in New York City have made large loans to their correspondent banks throughout the country, and it is reasonable to suppose that part of the proceeds of such loans has been applied by the borrowing banks for agricultural purposes, but, of course, the exact amount can not be stated. The same observation is true with respect to loans made by member banks in Chicago, St. Louis, Minneapolis, Kansas City, New Orleans, San Francisco, and other financial centers throughout the country. Nonmember State banks loaned large sums in the aggregate for agricultural purposes, but as they have no dealings with the Federal Reserve Banks their loans to farmers are not reflected in the figures furnished by the Federal Reserve Banks, although it is a fact that all Federal Reserve Banks have been lending large amounts to member banks which have in turn rediscounted paper for nonmember banks. It should be borne in mind also that the total amount of farmers' notes rediscounted by Federal Reserve Banks gives no indication of the amounts advanced by the Federal Reserve Banks to finance the production and sale of farm products since large amounts advanced to member banks in the agricultural districts on commercial and industrial paper are used by these banks for loans to agricultural interests. Purchases of bankers' acceptances by Federal Reserve Banks are not included in the table, although acceptances play an important part in the movement of crops to ultimate markets. Estimated amounts of paper rediscounted with Federal Reserve BanJcs based on production and sales of farm products. Federal Reserve Bank. 1919 Remarks. Boston. $2,642,000 I S4,979,000 These figures are confined to farm and dairy loans and do not include large amounts advanced on cotton, wool, and similar lines. New York 0) 1) Philadelphia. 2,971. 000 I 580,000 Fi o g m ur i e t s t in a g re t c h o e n f p in a e p d e r t o o f s t w ri o c o t l l y d e a a g l r e i r c s u , l c tu o r t a to l n p a m p e e r r - , chants, produce dealers, packers, agricultural implement. and fertilizer concerns. Cleveland. 612,000 I 21,753,000 Total agricultural and live-stock paper discounted These figures do not refteut total accommodation granted to agricultural interests, as many members borrow on U. S. securities to afford accommodation to agricultural borrowers. Richmond. 102,000,000 j 325,000,000 Figures include estimated amount of commercial and industrial paper discounted the proceeds of which were used for agricultural purposes. Atlanta. 91,300, 2 230,000,000 Do. Chicago. 47,263, 128,40S,000 Figures represent amounts of farmers' notes discounted.' Actual amounts loaned for production and sale of farm products are much in excess of amounts given, as" sales of farm, products are largely financed by commercial paper, also large amounts are loaned to banks on commercial paper or on notes secured by U.S. obligations, the proceeds of which ar .^loaned for agricultural purposes either directly or through correspondent banks. St. Louis. 2220,000,000 2 6G5,000,000 In addition a large part of loans on commercial and Government-secured paper was unquestionably for benefit of farmers. i No data. ^Eleven months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL KEPORT FEDEKAL RESERVE BOARD. 17 Estimated amounts of paper rediscounted with, Federal Reserve Banks based on production and sales of farm products—Continued. Federal Reserve Bank, Remarks, Minneapolis $75,000,000 $225,000 000 Kansas City 123; 481,000 229', 432.000 Dallas * .1 28,997, 000 44,91i; 000 Figures GO not include member banks' collateral notes the proceeds of winch were used for loans ! to agricultural interests. San Francisco. . I 35,000,000 122,000,000 Figures include total amounts of paper re-discounted during the two years based upon production and sales of farm products, excluding notes secured by Government obligations. The bank is unable to estimate the amounts of paper rediscounted which represents borrowings on Total for 11 banks - 729,266, 000 1,980,063,000 ! account of production and sales during the pre- ! ceding year. ! There is also submitted below a table prepared from figures which have been published monthly in the Federal Reserve Bulletin, showing the holdings of each Federal Reserve Bank on the last Friday in each month during the years 1919 and 1920 of paper classed by the Federal Reserve Banks as "Agricultural and live-stock paper." It will be noted that there has been a steady increase in these holdings since the beginning of the year and that this increase has continued after October, 1920, while in 1919 normal reductions from the high September figures are shown during the months of October, November, and December. Total amount of agricultural and live stock paper combined, held by each Federal Reserve Bank on the last Friday of each month since January, 1919. [In thousands of dollars.] Date. Boston. Y N o e r w k. Ph p i h la i d a. e l- C la le n v d e . - Atlanta' 1919. January 158 173 2,344 2, 229 9,367 February... 159 124 3,014 2,632 9,346 March 191 53 151 3 -52 2,699 10,385 April 170 52 152 3^304 2,789 10,264 May 223 78 152 3,143 3,011 2,344 June 305 129 3,086 3,471 2,376 July 288 105 2,826 3,836 1,499 A Se u p g t u e s m t ber., 1 15 4 9 8 10 5 4 7 3 5 6 2 3 35, 0 2 3 2 9 5 4 5 , , 8 2 3 7 6 3 4 5 , , 4 8 7 3 9 5 October 217 86 69 1,568 3,068 9,890 November.. 199 72 2G9 553 1,438 13,144 December.. 288 138 269 449 841 12,783 1920. January 177 190 369 693 11,603 February 274 155 162 533 667 12,010 Marcli 302 190 186 689 1,171 15,089 April 396 196 309 1,317 ! 2,127 21,562 May 514 252 4.29 2,646 i 4,300 25,840 Juno 13 624 281 409 4,581 | 7,130 27^ 706 Jillv. i 5,091 459 328 588 7,887 13,319 25,812 August i 2,240 224 265 765 9,273 18,051 21,908 September 140 261 806 10,091 18,465 21.060 October 76 272 862 9,392 19, 233 33^ 768 November 119 103 297 ! 777 8, 481 18.970 41,430 December2 257 388 893 9,251 16', 831 52,695 I 1 Practically entire amount represents paper held under rediscount for oilier Federal Reserve Banks. 2 Figures as of Thursday, December 30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 ANNUAL REPORT FEDERAL RESERVE BOARD. Total amount of agricultural and live stock paper combined, held by each Federal Reserve Bank on the last Friday of each month since January, 1019— Continued. [In tli on sands of dollars.] Date. St. Louis. M ap i o n l n is e . - K C a i n ty s . as Dallas. Sa c n i s F co ra . n- Total. 1919. January 185 1,870 19,584 15,373 7,601 59,001 February.. 224 | 1,276 20', 817 17,915 8,335 63,917 March 438 I 1,059 23,016 IS, 008 8,120 67,373 April 455 I 1.371 21,613 18,831 7,880 66,881 May 615 2; 836 19,430 18,694 8,465 58,991 June 759 ! 3,336 27,832 18,149 8,717 68,256 July 806 3,332 26. .539 15,880 8,225 63,604 August...-. 713 I 3,228 17,938 14,298 9,055 57,901 September. 749 3,111 19,454 15,124 7,193 60,205 October 625 5,327 19.132 10,404 5,067 55,475 November. 562 5,867 20', 498 5,794 4,101 52,550 December.. 294 6,855 20', 022 4,450 4,620 51,068 1920. January 295 9.503 21,878 4.637 7,227 56,905 February 389 12', 327 26,091 4'. 833 9,725 67,195 March 676 10,738 27,746 6^165 11=697 74,665 April 2,559 15,284 35,398 11,587 15; 644 106,3R2 May 3,384 26,348 38,396 16,242 22,250 140,691 June 4,255 30,370 42,697 22,098 27,874 168.038 July 5,818 43.134 36.353 28,552 35,179 202,520 August 5,738 55i 815 34,019 29.502 38,478 216, 278 S O e c p to te b m er ber 6 8 , , 6 0 1 6 8 3 G 6 l 1 ' , , 0 4 3 7 6 2 3 4 7 6 , , 8 0 5 3 8 6 S 3 I 0 ', , 3 7 3 1 1 1 3 3 5 1 ? ,5 9 8 4 0 2 2 2 2 4 4 0, , 6 4 4 2 9 4 N D o ec v e e m m b b e e r r 1 5 4 , , 8 8 6 9 4 6 5 6 3 7 , ,S 8 3 9 1 6 4 4 3 6 , , 9 8 5 4 8 0 3 2 1 8, , 6 2 4 5 7 1 2 2 9 9 , , 1 7 2 4 2 0 2 24 4 5 6 , , 5 9 9 3 9 8 1 Figures of Thursday December 30. CHANGES NOT DUE TO CONTRACTION. That the changes in business conditions and readjustment of prices have not been brought about by contraction or drastic restrictions is demonstrated by the fact that while the total volume of bank credit in the United States declined but slightly from the first to the last day of the year, the velocity or rate of turnover of credit has slackened materially, as indicated by the reduction during the latter part of the year in the sum total of debits to individual deposit accounts reported to the Board by the principal clearing houses of the country. The following table shows for each month in 1920 and 1919 the total volume of debits for all reporting centers combined, also for New York City and for all other centers separately: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

19 ANNUAL, REPORT FEDERAL RESERVE BOARD. Bank, transactions as shown by debits to individual account, as reported by banks in about 150 of the country's leading deaiing-housc centers. [Amounts in millions of dollars.] All reportingbanks. New York City. All other reporting centers. Amcunt. Increase Amount. Increase' Amount. Increase ( + )or ( + )or ( + )or decrease decrease decrease 1920 1919 (- c ) e . n p t e . r 1920 1919 (- c ) e , n p t e . r 1920 1919 (- c ) e , n p t e . r January 45,184 34, 792 +30. 0 23,636 18.119 +30.4 21.548 16, 673 +29.2 February 35.706 28, 086 + 27.1 18, 053 14;493 +24. 6 17; 653 13, 593 +29.9 March 43,364 32, 014 +35.3 22,2S5 16, 699 +33.5 21,079 15,345 +37.4 April 41, 598 32,642 +27.4 21.319 17; 324 +23.1 20, 279 15,318 +32.4 Mav 41 375 3 V 896 + 9.2 19. 859 20,828 — 4.7 21,516 17,068 +26.1 June 39,779 38,194 + 4.1 19^ 528 21, 072 - 7.3 20, 251 17,122 +18.3 Julv 39 910 40 918 — 2.5 19,063 22,426 —15.0 20.847 18,492 +12.7 August.. . .. 36, 334 37, 236 — 2.4 17. 371 19, 932 -12.8 18; 963 17.304 + 9.6 September 37 195 39 243 — 5,2 11, 599 20, 789 -15.3 19,586 18.454 + 6.2 October 40,503 44'. 525 — 9.0 20,136 24,226 -16.9 20,367 20'. 299 + 3 November 39,S77 43' 483 — 8.3 20, 308 23, 856 -6.7 19,569 19,' 627 - .3 December 41, 024 45, 493 — 9.8 21,888 24,357 -10.1 19,136 21,136 - 9.5 Total 481, 849 454,552 + 6.0 241, 045 244,121 - 1.3 240, 804 210,431 + 14.4 From 45 billions in January the volume of transactions declined to 36 billions in August and then increased to 41 billions in December. For the first six months of the year the volume of debits was larger in 1920 than in 1919, while for the last six months the figures declined to an increasing extent below the 1919 figures. In New York City the 1920 totals were smaller than the corresponding 1919 totals as early as May, the reduction in the volume of debits being due in part to curtailment of speculation and to the general dullness of the stock exchange, in part also to the organization of a stock-exchange clearing house, whose operation reduced the volume of checks required to effect settlements in stock-exchange transactions. The aggregate volume of debits in New York City for the year was about 3 billions less than for the preceding year, a decline of 1.3 per cent. Outside of New York the total of debits was 30 billions, or 14.4 per cent larger in 1920 than in 1919, monthly totals being larger in 1920 for each month, except November and December, though the excesses were much greater in the earlier than in the later months of the year. The largest monthly excess of these debits is shown for March. Since then a gradual decline may be noted, corresponding to the lessened volume of trade and since June also to the decline in the price level. Debits for October are barely in excess of the 1919 total, those for November are slightly below the corresponding total for the earlier year, while the total for December, 1920, was about 10 per cent below the total for the last month in 1919. FOREIGN TRADE FINANCING. Changes in production and prices, however, have only a partial significance, unless considered in their relation to foreign trade. Our Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 ANNUAL KEPORT FEDERAL RESERVE BOARD. trade relations with other countries have been of increasing importance ever since the outbreak of the European war. but at no time have questions relating to our foreign trade been of such vital importance as has been the case since the armistice. During the course of the war our trade with other countries passed through several stages Gf evolution, the last being the period when our exports to Europe were financed through credits extended by the Government of the United States, This stage necessarily continued long after actual hostilities were concluded hj the armistice, for there was still standing on the books of the Treasury a large unused balance of the credits which had been opened in favor of various allied Governments, and pending the return of our troops from abroad their pay and maintenance by the Government sustained export operations. Subsequent to the armistice export trade amounting to about $2,500,000,000 was financed through credits extended by the Treasury Department. These credits were an important factor in the maintenance of our foreign trade during the first half of the year 1919, but it was recognized that methods of financing adopted under the stress of war should not be continued as a permanent peace policy, for the funds necessary to make such credits available must be raised either by taxation or through loans, Thus upon the exhaustion of the Government credits it became necessary for American exporters to find other means of financing their transactions. Evolution in banking has always grown out of necessities arising from current conditions. For example, a material change was made in the banking system of the United States during the Civil War in order to meet the requirements of that period, and the National Bank Act was the outcome. Many years later the changes in the character of our exports from a preponderance of foodstuffs and raw materials readily sold, to a larger proportion of manufactured articles, which require greater selling effort and greater banking efficiency in order to meet competition successfully, led to the incorporation in the Federal Reserve Act of sections giving to member banks the authority to establish branches in foreign countries and to accept bills of exchange drawn upon them payable at a future time not to exceed six months after sight. .During the World War a new condition developed, and it was found that the usual credits of from 60 to 90 days designed to cover the financing of exports from the United States while goods were in transit, or even for a period of six months, were not sufficiently long to maintain the continuance of trade. The cause of this development was simple. There were no longer seasonal periods in each year during which the excess of imports over exports or exports over imports was continually reversed, so that the resulting trade balance could be readily settled by flow of gold to or from the United Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 21 States in connection with the other normal operations which affect foreign exchange, such as tourists' requirements, foreign remittances, freights, sales of securities, etc. On the contrary, a condition existed where exports from European countries failed not only to meet balances in favor of the United States during the period of heavy seasonal exports such as those of wheat and cotton, but where they were far from offsetting favorable balances during any part of the year. The causes of such a condition were due entirely to the war. Before the armistice, Europe called upon us for material for war purposes and food for its armies and peoples far beyond the ability of its civilian population to supply (this resulted in very heavy imports and lack of exportable commodities with which to pay for them). Since the armistice Europe has needed raw materials in great quantities in order to reestablish her industries, together with an immense amount of imported foodstuffs, while political and economic disturbances have prevented a resumption of normal production. These circumstances have continued the constant and overwhelming balance of European imports over exports that first developed during the war. In order to coordinate American capital and banking facilities in these transactions Congress enacted what is commonly known as the Edge Act, The object of this law is to provide a means by which long-time credits can be extended legitimately wherever necessary in order to complement the ordinary bank financing of our foreign trade. Banks having demand deposits may not safely extend the long-time credits required, but it was felt that they might properly be authorized to participate with merchants, manufacturers, and producers in the formation of other corporations authorized to extend the necessary long-time credits, and national banks have accordingly been authorized to invest not exceeding 10 per cent of their capital and surplus in the capital stock of such corporations, It is believed that, while not jeopardizing the position of the banks, this plan has the distinct advantage of keeping practical bankers in touch with what is in reality a banker's business, and at the same time that it will result in closer cooperation between those handling short-time and long-time credits for exports, thus working toward greater security for' pll concerned. But i:\v "^hwicrr'nu Mnd financial vrrcLl is roufroacod with a unique and u3!i]*!ilt situation identified in the public mind with the depreciated exc i urn ires of other count no but fuiuiiuneraali} to be explained <Tny by the causes fo" such doLreoiniion. Tn order tc* rimd means of coive^'iing theso cans* s it is necessary to study the eflim of the demijged foreign exchanges. The outstanding and most disturbing fact lies in ihe brake put upon the distribution of the world's products, for it is this stagnation of distribution which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

22 ANNUAL REPORT FEDERAL RESERVE BOARD. throws commodities upon markets that can not absorb them, resulting in a rapid fall of prices and consequent enforced unemployment of those engaged in production. Many countries which before the war had been in the habit of shipping their products to European countries are unable to do so to-day, as they can not sell on long-time credit; therefore they naturally turn to the United States, where they can sell for cash. In the course of time such commodities have accumulated here but there is no market for them, and countries which have been sending us their surplus products find that they have at' present nothing marketable to send us with which to pay for their imports from us. We find ourselves therefore with a large export trade which is being paid for only in part by a great portion of the world, and this trade is fast approaching a point where it may be cut drastically to the most vital essentials unless the normal credit and buying power of Europe can be restored. This restoration can be accomplished only over an extended period of time if our raw materials go forward in a steady stream against long-time credits. Foodstuffs must be furnished also, and except where shipped by relief organizations they should in the main be paid for promptly as they go into immediate consumption. We are therefore brought face to face with the problems of how we can best extend long-time credits to European countries in order to enable them to reconstruct their industries and how we can extend credit to other countries in order to enable them also to make shipments to Europe which otherwise would be made to the United States and glut our domestic markets. It is now possible to organize under our laws a form of corporation which has powers designed to meet this situation. By means of corporations organized under the Edge Act, long-time credits may be granted to finance exports not only from the United States, but from foreign countries as well. All of these operations are necessary for the solution of the present world problem. Should we proceed with only our present facilities for foreign trade, we may expect a damming up of our exports, with resultant competition in domestic markets affecting all kinds of commodities and manufactures. The congestion of commodities now existing would continue and the bottom would be reached only after large losses had been sustained and great hardship endured. Even in ordinary times when prices fall after a long rise and the decline is not drastic, the readjustment process is often very difficult. But to-day when goods valued at $1,000,000 a few months ago can be sold for not more than $250,000 to $500,000, the problem becomes a much more serious one. This constant and drastic decline in prices is not due to any lack of world requirement for the things themselves, but to the inability of those needing the things to pay for them in the foreign countries Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL, REPORT FEDERAL RESERVE BOARD. 23 where they are obtainable. There is the need and potential demand for the commodities, but an effective and economic demand is lacking because of absence of immediate purchasing power. For these reasons it is desirable that appropriate means be devised in order to assist the distribution of those commodities which are normally dependent upon foreign markets. It is the opinion of the Board that the opportunity afforded by the Edge Act for the organization, under Federal charter, of companies engaged in international trade and finance offers a practical means of effecting better distribution of goods and commodities in world trade. SUPERVISION OF CORPORATIONS FORMED UNDER THE EDGE ACT. Section 25 of the Federal Reserve Act, as amended by the acts of September 7, 1916, and September 17, 1919, authorized a national bank having a capital and surplus of $1,000,000 or more to invest, under certain circumstances, in the .stock of corporations chartered or incorporated under the laws of the United States or of any State thereof and principally engaged in international or foreign banking, and authorized any national bank, until January 1, 1921, without regard to the amount of its capital and surplus, to invest under certain circumstances in the stock of one or more corporations 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 might be necessary to facilitate exports from the United States or any of its dependencies. At that time, however. Congress had not provided any means for the Federal incorporation of foreign banking corporations or other foreign financial corporations in whose stock national banks were authorized to invest. In the enactment of section 25 (a) of the Federal Reserve Act, approved December 24, 1919, Congress provided a means for the incorporation of institutions under Federal law for the purpose of engaging in international or foreign banking or other international or foreign financial operations in whose stock national banks, as well as individuals, firms, and other corporations, may invest. It should be noted that the provisions of section 25 (&), which confer Lipon national banks authority to invest in the stock of corporations organized under that section, are more liberal than the related provisions of section 25 permitting national banks to invest in the stock of corporations organized under State laws. Under the provisions of section 25 a national bank which possesses a capital and surplus of $1,000,000 or more may invest in the stock of international or foreign banking corporations organized under State laws to the extent of 10 per cent of the subscribing bank's capital and surplus, and a national bank, irrespective of the amount of its capital and surplus, may, until January 1,1921, invest in the stock of corporations or- Digitized for FRAS4E5R5 25°—21 3 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 ANNUAL REPORT FEDERAL RESERVE BOARD. ganized under State laws and engaged in foreign financial operations (as distinct from foreign banking corporations), provided that its investment is limited to an amount not in excess of 5 per cent of its capital and surplus. On the other hand, the provisions of section 25 (a) permit a national bank, irrespective of the amount of its capital stock, to invest to the extent of 10 per cent of its capital and surplus in the stock of corporations organized under the provisions of that section and engaged either in foreign banking operations or In the foreign investment business, provided, only, that the aggregate of all investments made by the national bank under the terms of section 25 and section 25 (a) does not exceed 10 per cent of its capital and surplus. So far as investments by national banks are concerned, therefore, a corporation organized under section 25 (a) enjoys certain advantages which a corporation organized under the laws of a State does not enjoy, While, as has been pointed out in the earlier part of this report, corporations organized under section 25 (a) may be used as a means of assisting in the reconstruction of Europe at a time when such assistance is most vitally needed, nevertheless, the real purpose of this section is a broader one—that is, to provide for the establishment of a Federal system of international banking or financial corporations operating under Federal supervision with, powers sufficiently broad to enable them effectively to compete with similar foreign institutions and to afford to the American exporter and importer at all times a possible means of financing his foreign business. Although it is true that the immediate effect of the operation of corporations under the terms of this section may be greatly to aid in the extension of much-needed credits to Europe, that effect is in reality only one incident to the permanent development of the American export market. Congress, being mindful of the unusual powers conferred by this section, placed upon the Federal Reserve Board the responsibility of making such regulations and restrictions as may be necessary to insure the conservative and prudent management of corporations chartered under its provisions and to safeguard as far as possible the interests of the public with whom they may do business, The Federal Reserve Board, therefore, while realizing the importance of making its regulations sufficiently liberal to enable corporations operating under them effectively to compete with foreign institutions or State institutions doing a foreign business, has been impelled by the ordinary principles of banking prudence to impose restrictions which it believes will ultimately do much to command the prestige and public confidence, upon which must depend the success of every corporation of this character. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

KEPORT FEDERAL RESERVE BOARD. 25 The Federal Reserve Board on March 23, 1920, issued its Regulation K, Series of 1920, governing the organization and operation of corporations under the provisions of section 25 (a). This regulation prescribed the formalities necessary for the organization of corporations under this section. Specific provision was made for the transfer of stock of such a corporation to insure compliance with the provisions of the act, and it was expressly provided that the by-laws of the corporation must contain appropriate regulations for the registration of the shares of stock in accordance with the terms of the law and the Board's regulations, and that such by-laws must also provide that the stock certificates shall contain sufficient provisions to put the holder on notice of the terms of the law and the regulations of the Board. Under this regulation agencies may be established in the United States with the Board's approval, but for specific purposes only and not generalfy to carry on the business of the corporation. Branches may under no circumstances be established in the United States and may be established abroad only with the approval of the Board. The regulation authorized the acceptance of drafts and bills of exchange growing out of transactions involving the importation or exportation of goods, provided, however, that the maturity of such drafts and bills is not in excess of six months, and provided that, except with the approval of the Federal Reserve Board, no corporation may accept drafts or bills of exchange if at the time such drafts or bills are presented for acceptance it has debentures outstanding. The aggregate of any corporation's liabilities outstanding at any one time was restricted to ten times the amount of the corporation's capital and surplus. The regulation further provided that each corporation shall make at least two reports annually to the Board in such form as it may require and that an examination shall be made at least once a year by examiners appointed by the Board. Regulation K of the Board's new regulations, Series of 1920, which supersedes the Board's original Regulation K, issued March 23, 1920, makes only one substantial change. The paragraph entitled " Acceptances " has been amended so as to permit corporations organized under the provisions of section 25 (a) to accept, subject to substantially the same conditions as are imposed by law upon member banks, drafts drawn by banks or bankers located 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 those countries, dependencies, or possessions. It is realized by the Federal Reserve Board that the organization raid operation of these corporations involve new principles and new fields of effort, and that experience may demonstrate that the regulations which it has promulgated may be in some respects too re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 ANNUAL. BEPOKT FEDERAL RESERVE BOARD. strietive and in other respects too liberal. The Federal Reserve Board, therefore, in order to permit of the development of operations under the terms of this section in the manner contemplated by Congress, has reserved the right to amend its regulations from time to time in such manner as experience and changing conditions may dictate. Since the passage of the so-called Edge Act, Wo international financial corporations have been incorporated under the provisions of that act, one with a capital stock of $2,100,000 and the other with a capital stock of $7,000,000. Plans are now well under way for the organization of another corporation with a capital stock of $100,000,000. Requests are being constantly received by the Board for information concerning the organization of corporations under section 25 (a) and it is not unlikely that other corporations will be organized within the next year. STATE FOREIGN BANKING CORPORATIONS. During the year one American banking corporation, organized under State laws, principally engaged in foreign banking, has entered into the necessary agreement with the Board to enable national banks to purchase its stock under the provisions of section 25 of the Federal Reserve Act. The number of such corporations in operation has thus been increased to 10. :he Equitable Eastern Banking Corporation, of New York, was organized in December, 1920, with a paid-in capital of $2,000,000, and has entered into the usual agreement with the Board for the regulation of its operations. This corporation is controlled by the Equitable Trust Co., of N~ew York City. The scope of operations of the other American foreign banking corporations doing business under agreement with the Board (listed below in the table) has been extended considerably during the past year. Combined capital and surplus accounts of the head offices of these corporations have increased $9,870,000. The American Foreign Banking Corporation has increased its foreign branches from 9 to 19, the new branches being located at San Pedro Sula, Honduras, Central America; Buenos Aires Argentine Republic; La Vega, Santo Do- ? mingo ; San Francisco de Macoris, Santo Domingo; Santo Domingo, Santo Domingo; San Pedro de Macoris, Santo Domingo; Sanchez, Santo Domingo; Santiago, Santo Domingo; Puerta Plata, Santo Domingo; Mexico City, Mexico. The Mercantile Bank of the Americas has established a branch at Hamburg, the International Banking Corporation has added branches at Barahona, Dominican Republic; Madrid. Spain; Barcelona, Spain; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 27 and the Equitable Eastern Banking Corporation has established a branch at Shanghai, China. As of Dec. 31, 1920. Organized un- Name of corporation. der laws of Subsidi- State of— C a ap nd ital Re ( s h o e u a r d ces af a f r il y i a o te r d Foreign Domestic surplus. office). institu- branches. branches. tions. American Foreign Banking Corpora- New York $0,504,635$40,606,352 1 16 tion, New York City. Mercantile Bank of the Americas, Connecticut...10,570,000 87,786,228 4 1 New York City. Asia Banking Corporation, New New York 5,100,000 24,652,299 9 York City. International Banking Corporation, Connecticut... 10,000,000 76,427,505 31 1 New York City. Park-Union Foreign Banking Cor- New York . 4,621,004 16 297 406 4 2 poration, New York City. French American Banking Corpora- . do 2 500,000 17 534 560 tion, New York City. Foreign Credit Corporation, New . do 6 629,736 26 894 304 York City. First National Corporation, Boston, Massachusetts. 1,950,000 9,443,675 1 Mass. Shawmut Corporation, Boston, do 2,500,000 11,334,078 1 Mass. Equitable Eastern Banking Corpora- New York.... 2,500,000 2,500,000 1 tion, New York City. FOREIGN BRANCHES OF NATIONAL BANKS. The Federal Reserve Board during the year 1920 authorized the establishment of foreign branches and subbranches of national banks as follows: National City Bank, New York City: Branch in London, England, February 2; subbranch in same city June 8. First National Bank, Boston, Mass.: Branch in Rio de Janeiro, Brazil, September 21. The branches operated by the National City Bank in the cities of Madrid and Barcelona, Spain, were transferred to the International Banking Corporation, of New York City, on September 21. FOREIGN EXCHANGE DURING 192 0. It should be understood that during the past 18 months our foreign trade has been conducted under peculiar and difficult conditions. The banking systems of the principal European countries which were obliged to bear heavy burdens during the war on account of the enormous drafts made upon them by their Governments found it impossible to conduct their business in a normal way, not only because of the great issues of paper currency which have been emitted, but also because of changes in the credit standing of great numbers of their clientele. The efficient banking machinery which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 ANNUAL. KEFOET FEDERAL RESERVE BOARD. had existed in Europe prior to 191.3 has been destroyed in some cases and in others has been crippled. This would in any case have been a serious barrier to resumption of normal trade relations with foreign countries by the United States, but the situation has been further aggravated because of the fact that the standards of value throughout Europe have so extensively and seriously broken down. Consequently foreign exchanges have become unstable and the usual methods of collecting indebtedness abroad are no longer effective. Furthermore, the embargoes upon movements of gold which still prevail in many countries have prevented stabilization of exchanges. It is not, therefore, remarkable that in many cases exporters finding their banks unable or indisposed to extend accommodation which would involve the carrying of large balances in foreign banks should themselves have assumed the financial risks and have continued their transactions by accepting payments in the currencies of the countries to which the goods were shipped or in some cases by accepting credits on the books of the European importers. In order to point out some of the problems and difficulties, which have been attendant upon foreign trade transactions because of the violent fluctuations and the erratic course of foreign exchanges, it seems proper, to give a detailed review of these fluctuations and their causes. During the month of December, 1919, European exchanges showed a downward tendency, sterling falling from $4 a pound to $8.76, francs from 9,90 francs to the dollar to 10.90, guilders from $0,38 each to $0.37|, Swiss francs from 5.48 to the dollar to 5.62, lire from 12.34 to the dollar to 13.25, Danish crowns from 20 cents to 19 cents each, Swedish crowns from 22.35 cents to 21-J cents. The rates named last in each case prevailed at the opening of the year 1920 and represented the depreciated exchanges in the New York market, those of the allied nations in particular showing large percentages of depreciation. Throughout the year 1920 all of these exchanges together with Norwegian crowns and German marks (with certain exceptions which will be mentioned later) followed substantially the same course. In a general way they all continued to fall until about the 1st of March, rising until the first part of April, and, after fluctuations during April and May, returning during the first part of June to practically the same general level which had prevailed during trie first part of April. Then followed a marked rise in sterling, French francs, Belgian francs, and Swedish crowns until the high point of the year was reached in these exchanges just before the middle of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 29 July. In the meantime guilders, Norwegian and Danish crowns, marks and lire had all been working a little lower. From the middle of July all of the European exchanges steadily eased off during the rest of the year^ except for short rises over occasional periods of a day or a week, until in the early part of November they had all fallen to about the lowest point of the year. Sterling exchange, which was at $3.80 to the pound at the beginning of the year, reached $3.35 in November. It had fallen to $3.19 early in February, but this was a temporary break based upon rumors that England might establish an embargo on the importation of cotton. It recovered sharply to $3.31, after which it dropped again to $3.19J. Many banks dealing in foreign exchange discontinued at this time making advances on dollar 'drafts drawn against exports to foreign countries and began taking them for collection only. Announcement some days later that England was planning to export gold to the United States to meet the Anglo-French loan which matured October 15, 1920, caused a sharp rise in sterling which continued to advance until it reached $4.03 a pound in April. During the remainder of the year sterling followed the general tendency. The arbitrage of the exchanges through London was so free and constant throughout the year 1920 that, except for special conditions which applied to certain local currencies, sterling exchange was closely followed by all the other exchanges. In the case of French and Belgian francs some very marked fluctuations came about in both 1919 and 1920, which were due entirely to speculation based upon the possible outcome of negotiations being held, or expected to be held, between the Allies. During each one of these conferences—or usually in anticipation of them—sterling exchange in Paris and Brussels fell rapidly, which forced up the rates of these exchanges as quoted in dollars. The rumors which were at the bottom of these movements of sterling exchange in France and Belgium were that further loans might be arranged in England for the use of these two countries, particularly of France. British and French newspapers during these periods printed articles thought to be officially inspired, which gave such force to the rumors that very large speculative operations were immediately undertaken in anticipation of the effect that such loans would have. After it developed at each one of these meetings of the Allies that no loans had been effected in England for account of France, sterling exchange in Paris again advanced, with the resultant fall of the price for francs in the United States. As France exports less to Belgium than it imports, the rates for these two exchanges have been affected proportionately the same, with a slight difference in favor of Belgium, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 ANNUAL REPORT FEDERAL RESERVE BOARD. In April the belief was prevalent in the markets that Great Britain would not join with France in any extension of the Anglo-French loan and that France would have to take care of its own obligations. This led to a sharp rise of sterling in both Paris and Brussels and a corresponding fall in the value of French and Belgian francs, which continued throughout the month of April. From that time until the high point of the exchanges was reached in July, the movement of exports from the United States to France and Belgium was proportionately less than during the rest of the year. At the same time importers in France were not placing orders for further imports, and they stopped the purchase of dollars for spot and future delivery. Coincidently it became known that the French Government was taking positive action to meet payment of its part of the Anglo-French loan. French francs advanced from the low point of about 17 francs to the dollar in April to 11.80 francs to the dollar early in July, and Belgian francs from 16,30 to the dollar in April to 11.10 in July. Marks, which opened the year at about 2 cents each, dropped violently during January and reached the low point close to 1 cent in February. About the middle of March and April there were violent fluctuations in marks, but the fall after each rise left the rate a trifle higher than before the rise, until the high point was reached in the latter part of May, when marks sold at 3.04 cents each. The operations which appeared to have brought about this rise were the purchase in the United States, Great Britain, and Holland of German municipal bonds and other securities. As soon as this speculative buying had run its course the German mark began to fall rapidly, until on November 1 the mark was quoted at 1.14 cents. It is interesting to note that the sharp rise in the value of the mark during the month of May caused serious losses to German manufacturers and for a time stopped their export trade. These manufacturers had purchased raw materials in foreign markets when the foreign exchanges were up and were obliged to take payment for finished products when foreign moneys were down. The low current value of the mark was also making it extremely difficult for manufacturing interests in neutral countries, as it was cheaper for these countries to export raw materials direct to Germany, have them made up into finished goods and reimport them from Germany, paying freight both waj^s, than to import raw materials direct and to manufacture the goods themselves. From the middle of July through the remainder of the year, except for minor fluctuations, the steady downward trend of all European currencies was due to the fact that these months covered the period Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 81 of our exports of cotton and other agricultural products. The immediate turn in the latter part of July was due partly to the crisis in Poland occasioned by the advance of the Russian armies. Early in August, when it appeared that Warsaw might be taken, all of the European exchanges dropped suddenly, but as the Polish armies drove the Russians back, the exchanges recovered part of the loss. In September labor troubles in Italy began to take a serious turn, and certain manufacturing concerns were taken over by the labor emploj^ed therein. Lira exchange then began to fall and continued its downward course from its high point of 15.8 lire to the dollar, which it reached the latter part of June, to the low point for the year in the first part of November, of 30.3 lire to the dollar. While the British coal strike was reflected in the exchanges in October, to a certain extent the general feeling seemed to be that it would be settled and its effect was noticeable only for a few days. Investments have been made by those who have absorbed foreign exchange, as bills for export have been offered during the year, because they expected to make a profit over a long or short period, and it is only because of purchases of exchange so made that foreign exchanges have been maintained at all. During normal periods Avhen gold, arbitrage, or temporary borrowings can be used to offset temporary exchange balances, fluctuations of exchange between the principal industrial countries of the world which are on a gold basis are generally governed by the gold points—that is, the exporting or importing points. When, however, the balance of trade is constantly one way and the time when a turn may be expected is an indeterminate future, which is made more uncertain because of unlimited inflation, the gold points lose all force. Then the fluctuations of exchange during each day and each period come to depend upon the proportionate simultaneous presentation of export bills and demands to pa}^ for exports, and any other operations which create or require exchange, together with the opinions of those who are looking for investment in any one of the ways previously mentioned because such rates as prevail offer opportunities for possible profit. Extreme fluctuations of the exchanges covering large percentages are certain to occur under such conditions. The support of the exchanges being subject to such sentimental buying, they are more subject to the influence of political or other events which would seem to have an effect upon them than might otherwise be true. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 AKKUAIi REPORT FEDERAL RESERVE BOARD. During the year 1920 these elements resulted in percentages of differences between high and low points of the principal European exchanges, which were as follows: Per cent. Sterling , . 19. 8 French francs . . 38. 5 Belgian francs 35. 3 Lire 55. 8 Swedish crowns . 20. 7 Norwegian crowns 35. 3 Danish crowns 31. 7 German marks 65. 7 Some of the sharpest fluctuations covering a period of a comparatively few hours, or over a day or so, were, in sterling, a drop of 7.5 per cent in two business days, with a recovery of 2.8 per cent in 24 hours, a total recovery in 10 days during the first half of February, and a sudden drop the first and second of August of 4 per cent, with a recovery of 2.4 per cent in the two succeeding days; in French francs a fall of 10.4 per cent in three days during the first half of April, a rise of 9.4 per cent in three days at the end of May, and a fall of 7.3 per cent in two days just after the middle of July. The sharpest movements in Belgian francs were practically the same. In Dutch guilders there was a sudden rise the latter part of January of 4 per cent, followed immediately by an approximately equal fall. Italian lire had a perpendicular drop over a few days from the latter part of January to the first few days of February of 19 per cent, a further rapid fall the first part of April over the course of a few days of 22.8 per cent, which was followed by a sudden rise in two days of 21.4 per cent. The latter part of May there was another sharp rise for a few days of 19 per cent. From the first of July until the first week in November there were constant sharp falls, with five sudden temporary recoveries for a day or so of about 4 per cent each. Marks fell 50.5 per cent between the 1st of January and the 24th, rose sharply over the course of a day or two 26.4 per cent, and immediately dropped to the original low point. At the end of the first week of March, over two days they rose 55 per cent, and lost practically all of the advance in the succeeding four days. Early in April they had again risen 80 per cent, practically all after the second of the month, dropped by the middle of April 19 per cent, went up during the third week in May 46 per cent, and almost immediately fell 25 per cent. The fluctuations during the remainder of the year were in similar large percentages, but always with a downward, tendency, until the end of the first week in November. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 33 Attention is called to these percentages in order to show under what tremendous difficulties bankers and exporters and importers had to trade. In order to make it possible for our exporters to sell their goods, bankers were obliged to buy bills on markets which might drop out from under them while they were at telephones making purchases, and while there were occasional sharp rises in their favor, yet on the whole during the year the tendency was downward, and the rates of all the European exchanges the first week in November were far below the prices at which they had ruled at the beginning of the year. The far eastern exchanges, with the exception of exchange on Japan, showed a constant downward tendency throughout the year. The greatest drop was in Shanghai taels. Hongkong dollars followed next, and rupees also showed a great decline. The depreciation of the Manila peso was not so great; during the latter part of the year it ruled at a discount of from 4 to 8 per cent. The Japanese yen, which opened the year at a premium, fell below par during the first few months of the year, after which it went back to a premium, where it remained throughout the balance of the year, except one day. The premium on the yen the first week of November was, however, very small. The same difficulty in paying for imports from the United States that prevailed in all of the far eastern countries, except Japan, has been met with in Australasia, The Canadian dollar was at a discount throughout the year, and reached its greatest depreciation in November, together with all of the other foreign currencies. Without having their figures available it would seem, judging from their relations with the United States, that other foreign countries were not able to trade with the European countries even proportionately as well as the United States. This was undoubtedly due to the fact that they could not find buyers to any extent of favorable balances that might have been created. Their trade naturally, therefore, tended more toward the United States than was normal, particularly as Europe could not supply them with their requirements to the same extent as before the war. Having to pay for imports from the United States, they naturally exported more to this country, and again, because they were able to receive in effect payment in cash. This resulted in the import into the United States of commodities in vast quantities, for which we suddenly found we had no market, as their true markets were European countries. With the sudden fall in prices of the things which many of the South American and far eastern countries had to sell, and the development in the United States of stagnant markets at any price, their opportunity to buy further from the United States was sharply cut off. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 ANNUAL KEPORT FEDERAL, RESERVE BOARD. The world trade of the United States, therefore, is being menaced by the circumstances which have produced demoralization of world exchanges, and until the causes of this demoralization have been removed through the resumption of general distribution of goods among the nations, our foreign trade is going to be extremely difficult to carry on, and we must expect violent fluctuations, which will be entirely at the mercy of political events, relationships between daily offer- Ings of exchange and demand for it. and money markets, EXCHANGE TRANSACTIONS WITH SOVIET RUSSIA. As stated in the Board's Annual Report for the year 1919, the President, on June 26,1919, issued a proclamation which revoked and canceled all previous proclamations prohibiting the exportation of coin, bullion, and currency and controlling transactions in foreign exchanges, and the power and authority for those purposes vested in the Secretary of the Treasury and 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 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) snij 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 June 30, 1919, the Federal Reserve Board announced that remittances to the countries referred to in the fourth exception mentioned above were not thereafter subject to any restrictions, On August 12, 1919 the Federal Reserve Board 9 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. On December 18, 1920, with the approval of the Department of State, all supervision and control of the above-named transactions were suspended, until further notice, in order to give force and effect to the action of that department in removing restrictions in the way of trade and communication with soviet Russia, as announced by the Department of State on July 7, 1920, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 35 RELATIVE POSITION OF AMERICAN BUSINESS AND FINANCE. Some of the principal factors in the situation which contrast our position with that of foreign countries may be outlined as follows: (1) The expansion in the total volume of currency has been much less in the United States than in other countries and the increase in the total circulation, while greater than that which has taken place in Spain, Japan, Sweden, the Netherlands, Denmark, and Switzerland, has been far less than in other countries as is shown by the following tables. Comparative table showing total note circulation, deposits, and gold and silver holdings of the principal banks of issue, at the outbreak of the war, about the time of the armistice, and at latest available dates. (In thousands of dollars.) At outbreak of the war. Per cent of gold and Total note Total N d o e t p e o a s n it d Gold and hol s d il i v n e g r s to circulation. deposits. liabilities silver note and combined. holdings. deposit liabilities combined. ALLIED POWERS. Belgium 311,665 20,409 332,074 56,619 17.1 Franco 1,289,855 250,716 1,546,571 919,968 59.5 Great Britain: Bank of England 144,566 326,699 471,265 185,567 39.4 E x chequer 187,253 187,253 90,030 48.1 Total 331, 819 326,699 658,518 275, 597 41.9 Japan 1 180,411 74,944 255,355 110,521 43.3 Italy: Bank of Italy, Bank of Naples, Bank cf a?>ilv 4l0 718 145,330 586,048 287, 825 49.1 Treasury 96;321 96,321 22,581 23.4 Total 537,039 145,330 682,369 310,406 45.5 Russia...: 841,174 592,522 1,433,696 863,371 60.2 Total including Russia . 3,491,963 1, 416, 620 4,908.583 2, 536, 482 51.7 Total, excluding Russia 2, G50, 789 824.098 3, i li, 8S7 1,673,111 48.1 I nited States2 1,097,353 1, 097, 353 445,671 40.6 CENTRAL POWERS. A G u er s m tri a a n - y Hungary - - - - 4 69 3 2 1 , , 4 4 4 8 2 9 2 5 9 9 9 , , 0 5 1 1 2 5 4 9 9 9 0 1 , , 5 95 0 7 1 3 3 0 6 9 3 ; , 8 6 2 7 5 0 3 6 6 3 . . 7 2 Total 1,123,931 358,527 1,482,458 673,495 45.4 NEUTRAL POWERS. Argentina 3 349,485 349,485 313,407 89 7 Denmarlc 39,525 5,496 45, 021 24, 410 54.2 Netherlands 124,790 1,904 126,700 68,447 54.0 Norwav 32 85"') 3 859 36 718 14 405 39 2 Spain 373.557 96;931 470^ 488 248]861 52.9 Sweden 54,367 18,440 72, 807 26,154 35.9 Switzerland 51, 708 9, 777 61,485 38, 409 62.5 Total 1,026,297 136,407 1,162, 704 734,183 63.1 1 Includes gold held abroad. 2 The circulation represents greenbacks and national bank notes. The gold and silver holdings represent gold and silver held by the national banks, 60 per cent of the clearing house certificates, the reserve against greenbacks, and the available gold and silver coin in the Treasury. 3 Figures for the Caja de Conversion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 ANNUAL REPORT FEDERAL RESERVE BOARD. Comparative table showing total note circulation, deposits, and gold and silver holdings of the principal banks of issue, at the outbreak, of the war, about the time of the armistice, and at latest available dates—Continued. (In thousands of dollars.) About the time of the armistice. Per cent of gold and Note and silver Total note Total deposit Gold and holdings to circulation. deposits. liabilities silver note and combined. holdings. deposit liabilities combined. ALLIED POWERS. Belgium4 904,583 484,234 1,388,817 56,917 4.1 France 5,900,147 620,483 6, 520,630 5 719,818 11.0 Great Britain: Bank of England 316,016 821,037 1,137,053 362,968 31.9 E xchea u^r.... 1,429,734 1,429,734 138,695 9.7 Total . . 1 745 750 821, 037 2,566, 787 501,663 19.5 Japan i j 412,001 | 504,175 | 916,176 j 339, 532 I 37.1 Italy: I Bank of Italy, Bank of Naples, Bank of Sicily I 2,218,689 2,593,244 224,285 | 8.6 Treasury j 403,274 403,274 31,826 | 7.9 Total I 2, 621,963 2,996,518 | 256,111 j 8.5 Russia.. Total, excluding Russia I 11,584,444 I 2,804,484 | 14,388,928 1 1,874,041 13.0 United States:« I 3, 675,206 1, 685, 677 | 5,340, 883 | 2,305,456 i 43.2 CENTRAL TOWERS. j Austria-Hungary i 7 7,210, 253 1,446, 806 I 8, 657,059 64,598 i Germany " i a 6, 524,350 I 2,454,370 8,978, 720 612,564 ! 6.8 3,901,176 I 17,635,779 | 677,162 3.8 Argentina s. 490,644 490,614 269,628 ! 55.0 Denmark... 117,974 22,485 140,459 ! 50,988 I 36.3 Netherlands 446,218 35,343 481,561 ! 284,840 I 59.1 Norway 116,905 34,306 151,211 ] 32,691 ! 21.6 Spam 620,630 219,920 840,550 I 553,350 | . 65.8 Sweden 210,109 37,920 248 029 I 75.940 | 30.6 Switzerland. 183,886 j 31,616 215^502 i 83,' 993 I 39.0 Total. 2,186,366 381,590 1 2,567,956 | 1,351,428 j 52.6 1 Includes gold held abroad. 3 Figures for the Caja de Conversion. 4 July 10, 1919. 5 Exclusive of $393,162,000 held abroad. 6 The circulation represents Federal Reserve notes in actual circulation, Federal Reserve bank notes in actual circulation, national bank notes and greenbacks. Deposits are net deposits of the Federal Reserve Banks, Gold and silver holdings comprise those shown by the Federal Reserve Banks, exclusive of gold with foreign agencies, also the Treasury reserve against greenbacks, and the available gold and silver in the Treasury. 7 Does not include "scrip" (Kassenscheine.) 8 Includes notes of the War Loan Banks (Darlehnskassenscheine). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL EEPORT FEDERAL KESERVE BOARD. 37 Comparative table showing total note circulation, deposits, and gold and silver holdings of the principal banks of issue, at the outbreak of the ivar, about the time of the armistice, and at latest available dates—Continued. (In thousands of dollars.) At latest available date. ALLIED POWERS. Belgium. Dec. 16,1920 220,973 I 1,380,040 France... Dec. 23,1920 694,916 i 7,921,678 Great Britain Dec. 15,1920 I Bank of England Exchequer Total. Japan* j Dec. 11,1920 Italy I June 30,1920 'Bank of Italy, Bank of I Naples, Bank of Sicily... I Treasury j Total. Russia j Total excluding Russia • United States6 j Dec. 30,1920 CENTRAL POWERS. Austria-Hungary. Nov. 23,1920 15,278,256 2. 052, 052 Germany Nov. 30,1920 18,259,178 < 130,371 Tota 33, 537,4346,182,423 39,719,857 318,119 NEUTRAL POWERS. Argentinas : Oct. 15,1920 579,089 579, 089 447,217 77.2 Denmark i Nov. 30,1920 148, 799 47, 708 196, 507 61, 692 31.4 N N e o t r h w e a r y la nds I I D O e c c t. . 3 6 1 , , 1 1 9 9 2 2 0 0 4 1 3 2 4 8?, 5 2 8 2 S 5 3 2 0 9 , , 4 0 9 7 9 7 4 1 6 5 5 7 , , 3 0 0 8 2 7 26 3 3 9 , ,4 9 8 0 3 0 5 2 6 5 . . 7 1 Spain ! Dec. 11,1920 817, 57G 231, 885 1, 049, 461 586, 398 55.9 Sweden Oct. 31,1920 207,113 50,149 257, 262 75,686 29.4 Switzerland Dec. 15,1920 178, 067 26,216 204, 283 127, 809 62.6 T ot al . I 2, 493, 457 415, 534 2, 908, 991 1,602,185 j .5.1 i Includes gold held abroad. 8 Figures for the Caja de Conversion. G The circulation represents: Federal Reserve notes in actual circulation, Federal Reserve bank notes in actual circulation, national bank notes and greenbacks. Deposits are net deposits of the Federal Reserve Banks. Gold and silver holdings comprise those shown by the Federal Reserve Banks, exclusive of gold with foreign agencies, also the Treasury reserve against greenbacks, and the available gold and silver in the Treasury. 7 Does not include "scrip" (Kassenscheine.) 8 Includes notes of the War Loan Banks (Darlehnskassenscheine). fc Exclusive of $376,035,000 held abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 ANNUAL REPORT FEDERAL RESERVE BOARD. Comparative table showing total note circulation, deposits, and gold and silver holdings of the principal hanks of issue, at the outbreak of the war, about the time of the armistice, and at latest available dates—Continued. RECAPITULATION. (In thousands of dollars.) Per cent of gold c T i o rc t u al l a n ti o o t n e . de T p o o t s a i l ts. c N l o i d a m o e b t p b e il o i i a n t s i n i e e t d d s . h G o o s l i l d l d v i n e a g r n s d . a h n t o o d a l d n n s i o i d n l t v g e e s r deposit liabilities combined. At outbreak of the war. Allied powers: Including Russia.. 3,491,963 1, 416,620 4,908, 583 2, 536, 482 51.7 Excluding Russia. 2,650, 789 824,098 3,474, 887 1,673,111 48.1 United States 1,097,353 1,097,353 445,671 40.6 Central powers 1,123, 931 358,527 1, 482, 458 673,495 45.4 Neutral powers 1,026, 297 136, 407 1,162, 704 734,183 63.1 Total, including Russia.. 6, 739, 544 1, 911, 554 8,651, 098 4,389, 831 50.7 Total, excluding Russia. 5, 898, 370 1, 319, 032 7, 217, 402 3, 526, 460 48.9 About the time of the armistice. Allied powers.. 11, 584, 444 2, 804, 484 14, 388, 928 1, 874, 041 13.0 United States.. 3, 675, 206 1, 665,677 5, 340, 8S3 2,305,456 43.2 Central powers. 13, 734,603 3,901,176 17, 635, 779 677,162 3.8 Neutral powers 2,188,366 381,590 2, 567, 956 1, 351, 428 52.6 Total 31,180,619 8, 752, 927 39, 933, 546 6, 208,087 15.5 At latest available dates. Allied powers.. 15,167, 964 2, 820, 421 17, 988, 385 2. 400, 999 13.3 United States.. 4, 616, 086 1,604,190 6, 220, 276 2, 429, 392 39.1 Central powers. 33, 537, 434 6,182, 423 39, 719, 857 318,119 Neutral powers 2, 493,457 . 415,534 2, 908, 991 1, 602,185 55.1 Total 55, 814, 941 11, 022, 568 i 66, 837, 509 6,750,695 j 10.1 (2) The foreign trade of the United States has been maintained on a higher and more stable level than that of any other country. In the subjoined table figures are given showing the volume of exports during the past two years from five of the principal countries fin.o'a.o-fir] in world trade. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 39 Exports of the United States, United Kingdom, France, Italy, and Japan. [In millions of dollars at gold parity.] United Date. S U ta n t i e te s. d * d K o i m ng . - 1 France.2 Italy. Japan. 1919. January 623 253 67 44 56 February 585 302 08 51 62 March COS 350 93 60 67 April 715 369 82 59 71 May 604 372 98 57 78 June 928 375 110 79 75 July 569 438 72 90 August 64G 400 88 September 595 480 134 110 October 631 523 139 124 112 November. 741 570 134 113 109 December 682 639 147 138 1920. January 733 528 139 83 88 February 646 636 255 103 87 March 820 616 259 115 98 April 685 679 266 131 109 May 746 664 233 128 96 June 631 664 349 145 91 July 651 756 101 77 August 579 624 464 103 87 September 605 637 415 77 October 752 625 450 67 November 677 645 303 52 December 721 532 321 43 1 Including reexports. 2 French foreign trade figures for 1919, and January through June, 1920, are expressed in 1918 value units. August, September, and October, 1920, figures are calculated at 1919 rates. A change in the methods of calculating the values for July, August, and December, 1919, and for July, 1920, makes them incomparable v/ith o th er months. (3) Prices in the United States have been relatively lower than those of other countries and the recent declines have been less drastic. This is demonstrated by the comparative index number table which appears on page 7 of this report. From the foregoing facts, the conclusion is justified that while the year 1920 was a period of commercial upheaval and financial stringency throughout the world and of serious disturbances in many countries, it has been far less distressing in the United States than in any other country. These conclusions are, however, of only secondary significance when the fact is considered that the United States is much stronger in financial resources and much more self-contained than any other country. But, however great the economic strength of the United States may be, it should be remembered that the country's expenditures during the war and the very profound modifications which have occurred in its economic system have had such far-reaching results as to make it imperative that the utmost care be taken to conserve our credit and protect the basis of our prosperity if we are to avoid the extreme conditions which prevail in other countries. Upon the United States in large measure the solvency and financial stability of many other countries depend, This fact greatly increases the responsibility which rests upon the American banking system and calls 45525°—21 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 ANNUAL REPORT FEDERAL RESERVE BOARD. for the exercise of sound judgment and the strict observance of sound financial and economic principles. The present is not a time for resorting to empirical remedies which merely deaden unpleasant sensations temporarily and which, instead of restoring the patient to health, undermine his strength and destroy his vitality. MOVEMENT OF THE PItlXCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS DURING THE YEAR 19 2 0. The holdings of discounted paper by Federal Reserve Banks showed a pronounced upward trend throughout the year 1920. The banks held 2,231 millions on January 2 and 2,719 millions on December 30, an increase of 488 millions for the period. From the relatively large total shown on January 2, when discounts were heavy in connection with annual dividend and interest payments, the banks' holdings of discounted paper receded to 2,080 millions on January 9. Subsequent to that date there is to be noted a succession of increases, with high points on February 27, June 4, September 3, and November 5, and recessions, with low points on March 19, June 18, September 17, November 19, and December 17, all of the low points being reported for Fridays following large operations of the Treasury in redeeming certificates of indebtedness and paying interest on United States bonds of the various issues. The volume of Government securities issued and redeemed through the Federal Reserve Banks during the }7ear, while smaller than during preceding years when the Liberty and Victory loans were floated, was still very considerable, the aggregate of Treasury tax and loan certificates allotted by the Reserve Banks being about 3,851 millions and the total redeemed about 4,960 millions, While the course of discounts in the Federal Reserve Bank statements has been a series of upward and downward movements, each successive high and low point has been considerably higher than the preceding one. In fact, the .September 17 low point is only 55 millions below the high point in the first half of the year, June 4, while the more recent low points on November 19 and December 17 are higher than the level reached at any date previous to August 20. Not only is a general upward movement of discounts shown throughout the year, but the growth has been more rapid during the second half, when the heavy credit demands of the crop-moving season are reflected in larger borrowings by members from the Federal Reserve Banks. Thus, while the increase in discounted bills held by the Reserve Banks between the low point on January 9 and the high point on June 4 amounted to 484 millions, the increase between the low point on June 18 and the high point on November 5 was 531 millions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL, RESERVE BOARD. 41 Another feature of the discount transactions of the Federal Beserve Banks during the year is the decrease in the proportion of paper secured by Government war obligations, Preferential rates on paper secured by Liberty bonds and Victory notes were abrogated by some Federal Reserve Banks and raised by others to a level more nearly approximating the rate level for ordinary commercial paper. In the case of paper secured by Treasury certificates the rates adopted were in most cases identical with the higher coupon rates fixed by the Government, thus holding out no inducement to the member banks to carry these securities among their own investments and use them as collateral for loans at the Federal Reserve Banks, but rather providing a stimulus to place them in the hands of ultimate investors. The results are seen in the gradual decrease of the amounts of war paper held during the year by the Reserve Banks. From nearly 1,500 millions at the opening of the year the holdings of paper secured by Government war obligations declined to 1,141 millions on December 30. Of the latter total 188 millions, or 16.5 per cent, were secured by Treasury certificates, compared with 462 millions, or over 81 per cent, held at the opening of the year—this decrease corresponding in a general way to the reduction in the amount of certificates held by the member banks. Much smaller reductions are shown in the Reserve Banks' holdings of paper secured by Liberty bonds and Victory notes, the December 30 total, 953 millions, being only 70 millions less than the amount reported at the beginning of the year. On the other hand, holdings of other discounted paper, which at the opening of the year totaled 747 millions, show an almost steady growth, being in excess of 1,500 millions at the end of September, and fluctuating between about 1,500 and 1,600 millions during the last three months of the year. At the end of the year, out of a total of 2,719 millions of discounted bills, about 42 per cent was composed of paper secured by United States war obligations, against 67 per cent of a total of 2,231 millions held on the first Friday of the year. Acceptance holdings of the Federal Reserve Banks show an almost uninterrupted reduction for the period under review. From a total of 575 millions at the beginning of the year, a decline to 256 millions on December 30 is reported, the decrease of 319 millions being due largely to the increased demand for acceptances by savings banks, trust companies, and by corporate and individual investors. Fluctuations in Federal Reserve Bank holdings of Treasury certificates of indebtedness during the year are mainly the result of the issue and redemption by the Government from time to time of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 ANNUAL REPORT FEDERAL RESERVE BOARD. temporary certificates in anticipation of the actual collection of income tax checks and the withdrawal of funds from depositary institutions. The highest Friday night figures for the year are shown for March 19 (410 millions) and September 17 (393 millions), both these days immediately following dates on which installments of income and excess profits taxes were due. Exclusive of these temporary certificates and of certificates bought under repurchase agreements, the Federal Reserve Banks' holdings of Treasury certificates consist chiefly of certificates deposited as security for Federal Reserve Bank notes outstanding. Total earning assets of the Federal Reserve Banks, which were 3,182 millions on January 2, and 2,984 millions on January 9, increased to 3,422 millions on October 15, and on December 30 were 3,263 millions. Government balances with Federal Reserve Banks were considerably smaller than during the previous year, partly because of a smaller volume of Government expenditures but also because of the development of a better system of handling Government funds. The daily average of Government deposits during 1920 was 36 millions, compared with 99 millions the year before. The lowest amount of Government deposits is shown for August 10, when the total was only 7 millions, while on September 17, subsequent to the payment of the September 15 installment of income and excess profits taxes, the highest figure of the year—135 millions—was reached. Member banks' reserve deposits fluctuated within comparatively narrow limits, the largest total—1,944 millions—being held on January 16 and the lowest—1,712 millions—on November 26. Other deposits, including foreign Government credits, declined from 116 millions on January 2 to 22 millions on December 30, mainly as the result of withdrawals by the Argentine Government of deposits made during the war. Net deposits held by the Federal Reserve Banks showed a general downward tendency for the year, the total on December 30—1,604 millions—being 280 millions below the maximum amount held on February 27. Reductions in reserve deposits of Federal Reserve Banks correspond to reductions in deposit liabilities of member banks, especially during the latter portion of the year. The larger borrowings from Reserve Banks in recent months have led to increased Federal Reserve note circulation rather than to increased deposit liabilities of the Reserve Banks, Federal Reserve note circulation, after the usual contraction at the beginning of the year, when a return flow of notes used during the holiday season occurs, shows an almost uninterrupted expansion. The minimum amount of 2,844 millions appears on the statement for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

•ANNUAL REPORT FEDERAL RESERVE BOARD. 43 January 23 and the maximum of 3,405 millions on December 23. The amount outstanding on December 30 marks a reduction of 60 millions from the high point on December 23, but an expansion of 345 millions from January 2. The circulation of Federal Reserve Bank notes declined from 259 millions on January 2 to 177 millions on May 14, but since that date an increase to 217 millions on December 30 is noted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Movement of principal assets and liabilities of all Federal Reserve Banks, by weeks, during 1920. [Amounts in thousands of dollars.] Resources. Liabilities. 1 2 3 4 5 6 7 Date. S o m b e G c l e i o u g n v r t a e e t w d r io n a b D n - r y s i . sc u O o n s u t s e h n a e c e t c n u e r u d r w d e r i e d p s d e a . per. Total. P (l e - r * - c 3 e ) n . t m i b n o B a u o r i k l p g l e e s h n t t . T r o es ta e l r v c e a s s . h dep N o e s t its. ci n R r F a c o e e c u t d s t e l e u a e s r t r a v i i a l o n e l n. a n r n l e e i R R d s a t e e a n b c d F r s t a i o v e i e l e s o t i p e d r h e t s v o i e o e e s r f t s i a o t l l i R i F n l a n B a e e b o n c t d s a i i t i e e o e l n e r t i r c r n s k t v a u . y , e l - . O combined. 8 Jan. 2 1,484,262 746,925 2,231,187 66.5 574,631 2,121,272 1,851,133 2,998,992 43.7 I 258,561 9 1,352,085 727,670 2,079,755 65.0 574,722 2,102,099 1,715,892 2,914,308 45.4 I 259.099 16 1,351,454 748,611 2,100,005 64.4 575,675 2,104,281 1,819,061 2,849,879 45.1 258)482 23 1,386,348 767,110 2,153,458 64.4 575,789 2,087,896 1,817,843 2,8-44,227 44.8 254,843 30 1,457.892 716,465 2,174,357 67.0 561.313 2,073,933 1,806,496 2,850,944 44.5 250)530 Feb. 6 1,451)557 751,982 2,203,539 65.9 55-i) 750 2,054,656 1,765,524 2,891,775 44.1 24.8,780 13 1,469,562 823,873 2,233,435 64.1 542,6C0 2,052,513 1)787,245 2,959.087 43.2 245,810 20 1,525,203 833,321 2,358,524 64.7 531,703 2,035,440 1,785,797 2,977i124 42.7 240,858 Pi 27 1,572,980 880,531 2,453.511 64.1 531,367 2,083,215 L884)576 3,019'. 984 42.5 237,131 Mar. 5 1.520,494 888,194 2,408)688 63.1 513,854 2,054,630 l'. 792,393 3,030,010 42.6 12 i) 515,959 907,487 2,423,446 62.6 504,172 2,056,730 1'. 798', 110 3) 039;750 42.5 220^738 19 1,353,509 854,172 2,207)681 61.3 463.232 2,000,323 1)688,032 3., 047', 133 43.5 211,132 26 1,441,015 1,008,215 2,449,230 58.8 451)879 2,057,155 1,772,904 3)048)039 42.7 201,392 Apr. 2 1,400,664 999,849 2,400,513 58.3 424,041 2,080,428 1,774,269 3,077,323 42.9 196.594 9. 1,410,069 957,469 2,307,538 59.6 422/2-il 2,087.306 1)742,139 3,080.217 43.3 190)157 W 16. 1,430,888 980,303 2,411,191 59.3 416,784 2,087)731 1,752,675 3,073,693 43.3 136.501 23 3,448,804 1,029,378 2,478)182 58.5 404,072 2,083,568 1,773,587 3,068,307 4,3.0 180,631 30 1,465,320 1,009,751 2,535,071 57.8 407,247 2,070,705 1,812,732 3,074.555 4.2 4 177,881 May 7 1,444,175 1.060,447 2,504,622 57.7 409,834 2,076,087 1,774,297 3,092)344 42.7 177,972 14 1,503,104 1.043,186 2,551.290 59.1 413,292 2,078,393 1,839)355 3,088,234 42. 176,805 1.440,723 1,053,663 2,500)386 57.9 417,3C8 2,079,538 1,784.379 3,085,202 42.7-V i 177,371 1,447,962 l)071,469 2,519,431 57.5 418,CCO 2,092,496 1,794)440 3,107,021 42.7 179,185 June 4 1,433,415 1.130,843 2,564,258 55.9 410,CSS 2,098,940 1,807,175 3,127,291 42.5 181,252 11 1,440)931 1,082,019 2,522,950 57.1 403,896 2,102,591 1.779,133 3,112,205 43.0 182,382 18 1,231,841 1,064,296 2,296,137 53.6 398,591 2,1C0,900 1)617,603 3,104,810 44.5 183,904 25 1,277,980 1,153,814 2,431,794 52.6 399,185 2,108,605 1,722,223 3,116,718 43.6 185,604 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 2 1,294,892 1,250,302 2,-545,194 50.9 390,085 2,109,501 1,755,996 3,168,814 | 42.8 189,232 9 1,296,350 11,,265,243 2,561,593 50.6 372,591 2,108,193 1,707,869 3,180,948 43.1 190,287 16. 1,256,258 11,,233,890 2,490,148 50.4 356,471 2,119,047 1,686,941 3,135,863 43.9 189,375 3 2 0 3 1 1, , 2 2 4 4 1 7 , , 0 3 1 7 7 1 ^[ [) , , 2 2 2 5 2 0 , , 5 6 3 1 6 3 2 2 , , 4 4 6 9 9 1 , , 9 6 0 3 7 0 4 5 9 0 . . 8 5 3 3 5 4 3 5 , , 5 3 - 0 1 5 3 2 2, , 1 1 2 3 8 4 , , 6 0 4 1 0 2 1 1 , , 6 6 8 9 5 7 , , 6 2 4 4 4 5 3 3 , , 3 1 1 2 8 0 , , 2 1 0 3 5 8 4 4 4 4 . , 4 2 1 1 9 9 0 2 , , 0 1 6 6 7 8 Aug. 6 1,285,398 l1,,264,435 2,549,833 50.4 339,390 2,131,744 ! 1,698', 480 3,141,861 44.0 194,834 13. 1,296,981 1,292,025 2,589,006 50.1 320,618 2,132,885 1,692,450 i 3,169,181 43.9 196,912 20 1,301,609 •1\),320,820 2,622,429 49.6 320,597 2,121,837 1,702,310 | 3,174,725 43.5 198,563 27 1 314 830 i1,352,297 2,667,127 49.3 321.965 2.127,827 1,717,867 ' 3,203'637 43.2 200,793 Sept. 3. 1,332', 892 l1,,412.035 2,744,927 48.6 313,501 2,117,957 1,735,OSS 3,243,270 42.5 205,423 10 1,299,123 [, 376', 076 2,675,199 48.6 316,982 2,131,247 1,679,417 3,295,185 42.8 209,073 17 1 202,593 i1,306,610 2,509,203 47.9 321,605 2,133,145 1,578.287 3,289,881 43.8 212,219 24. 1,220,423 1,484,041 2,704,464 45,1 307,624 2,151,594 1,658', 464 3,279,996 43.0 214,180 Oct. 1 1 183 017 21',526,584 2,709,601 43.7 301,510 2,165,195 . 1,645', 830 3,3C4,690 43.7 213,412 8. . . 1,217,098 1,578,573 2,795,671 43.5 305,690 2,158,268 ! 1,710,170 3,322,123 42.9 213,154 15 1,192,810 L, 581,060 2,773,870 43.0 319,520 2,154,911 1,694,130 3,353,271 42.7 213,533 2 29 2. 1 1 ,2 1 0 9 3 9 , , 9 1 0 3 5 9 • 1 ^ 1 1 , , 5 5 5 9 0 7 , , 1 3 4 9 3 2 2 2, , 8 7 0 4 1 9 , , 2 2 9 8 7 2 4 4 3 3 . . 6 0 3 2 0 9 0 8 , , 6 3 6 7 6 5 2 2 , , 1 1 5 6 7 8 , , 2 0 7 3 0 8 1 1 , , 6 6 7 2 4 4 , ,6 5 4 5 6 3 3 3 . , 3 3 5 5 0 1 , , 1 3 9 0 9 3 4 43 3 . . 1 3 2 21 1 4 3 , , 9 8 6 8 1 8 Nov. 5. 1,215,101 11,,611,724 2,826,825 43.0 299,769 2,169,729 1,694,923 3,354,180 43.0 214,533 1 1 9 2... 1 1 , , 1 1 5 8 8 0 , , 9 9 0 7 7 7 11 1, , 5 6 1 0 4 3 , , 4 7 6 7 7 3 2 2 , , 6 7 7 8 3 4 , , 3 7 7 5 4 0 4 4 2 3 . . 4 3 2 2 7 8 5 7 , , 2 8 2 5 7 4 2 2 . , 1 1 8 8 0 0 , , 0 2 1 2 1 8 1 1 , , 6 6 3 7 2 4 , , 7 7 4 6 0 4 3 3 , , 3 3 0 2 7 8, , 9 4 8 3 5 5 4 44 3 . . 1 6 2 2 1 1 3 5 , , 8 0 S 8 1 0 O 26. 1,192,425 11,,542,975 2,735,400 43.6 247,703 2,195,310 1,623,641 3,325,538 44.4 214,610 Pec. 3.... 1,160,685 11,,616,116 2,776,801 41.8 243,055 2,198,195 1,667,258 3,312,039 44.1 214,939 1 1 7 0 1 1 1 1 5 69 8 ,9 2 7 4 4 4 11 1 , , 5 4 4 3 7 7 , , 5 7 9 7 5 5 2 2, , 5 7 9 1 6 6 , , 7 8 4 3 9 9 4 44 3 . . 6 0 2 23 4 4 4 , , 6 6 0 9 9 0 2 2, }2 2 1 2 2 2 , . 4 4 0 C i 8 7 1 1 , , 6 5 6 4 2 2 , , 3 5 0 9 1 4 3 3 , , 3 3 1 4 1 4 , , 8 3 4 3 2 2 4 4 4 5 . . 5 5 2 2 1 1 4 7 , ,4 5 3 2 4 3 23 1,177,263 i1j,554,428 2,731,691 43.1 241,167 2,236,754 1,549,348 3,404,931 45.1 218,832 30 1,141,036 1,578,098 2,719,134 42.0 255,702 2,249,163 1,604,190 3,344,686 45.4 216,980 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 ANNUAL REPORT FEDERAL RESERVE BOARD. MOVEMENT OF RESERVES AND RESERVE RATIO. During the early part of the year the Federal Reserve Banks lost gold, largely through export to South America and the Orient, and on March 26 total gold holdings were 1,935 millions, a reduction of 128 millions from January 2. Since that time, chiefly as the result of gold shipments from England in anticipation of the maturity of the Anglo-French bonds on October 15, there has been an increase in gold reserves, the total of 2,059 millions on December 30 being only 4 millions below the total of 2,063 millions shown at the beginning of the year. During the year the amount of gold held with foreign agencies was reduced from 131 to 3 millions. All of the gold received in payment for food supplies sold to Germany, which was placed in custody with the Bank of England during the fall of 1919, has been withdrawn and brought to this country. As this gold was counted as part of the banks' reserves, its transfer from London to this country has had no effect on their reserve position. The 3.3 millions of gold now held abroad is in custody of the Bank of France, pending shipment. Total cash reserves show an increase of 128 millions, or from 2,121 millions on January 2, to 2,249 millions on December 30, a larger gain in other cash reserves arising chiefly from deposits of silver dollars by the Treasury being partially offset by the loss of 4 millions of gold. The reserve ratio of the Federal Reserve Banks, as a consequence of the changes detailed above is somewhat higher at the end of the 5 year than at its beginning, the percentages being' 45.4 on December 30, as compared with 43.7 on January 2. A rise of 1.7 points for the week ending January 9, due partly to the return flow of Federal Reserve notes following the Christmas holidays, was followed by a slow but steady decline, with some fluctuations, to 42.2 per cent on May 14. A sharp rise brought the ratio up to 44.5 on June 18, the Friday following large redemptions of tax certificates by the Treasury. Since June 18 the reserve ratio has fluctuated within lower ranges, falling as low as 42.5 per cent on September 3, but rising to 45.5 per cent on December 17, due mainly to gains in gold and reduction in net deposits. Eight of the Federal Reserve Banks at times during the year showed slight temporary deficiencies in their reserve against deposits, and by direction of the Board paid to the United States Treasurer as a penalty, under provisions of paragraph (c) of section 11 of the Federal Reserve Act, total amounts as follows: Boston $288. 56 New York - 23, 301.10 Atlanta 181.08 Chicago 147.15 Minneapolis • 78. 48 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL EEPOET FEDEKAL RESERVE BOARD. 47 Kansas City $95. 91 Dallas — 74.33 San Francisco 547. 44 Total 24, 664. 05 It may be of interest to note that at the Bank of England the ratio of reserves to note and deposit liability combined, if calculated on a basis similar to our own, has been maintained during the year on a level approximately the same as that of the Federal Reserve Banks, though the English ratio is subject to wider and more rapid fluctuations caused chiefly by Government operations in selling Treasury bills and obtaining ways and means advances, on the one hand, and by redemptions of these short-term obligations, on the other. In general, the ratio of the Bank of England, if figured on our basis, has fluctuated during the year between 40j and 50 per cent. On December 29 it stood at 39.7 per cent, comparable with a ratio of 45.4 per cent, shown on December 30 for the Federal Reserve Banks. INTERBANK PURCHASES OF ACCEPTANCES AND REDISCOUNT OPERATIONS. During the past year, as in 1919, the rediscounting between Federal Reserve Banks of discounted paper and sales of purchased bills, in order that Federal Reserve Banks having low reserves might extend further accommodations to their member banks and still maintain their minimum reserve requirements, has been continuous. In the early months of the year these operations were occasioned by the need of funds in the eastern Federal Reserve districts for the purpose of financing industrial activities and purchasing raw materials, as well as to aid the fiscal operations of the Government; and, from early spring throughout the balance of the year, by the demands in the western and southern agricultural districts for funds and credits to be used in financing the growing, harvesting and marketing of crops, and in feeding and marketing live stock. The volume of these transactions, which increased steadily during the year, reached the peak in October when the Federal Reserve Banks of New York, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, and Dallas had under rediscount, including bankers' acceptances sold, with the Federal Reserve Banks of Boston, Philadelphia, Cleveland, and San Francisco, a total of $267,378,000. From early spring throughout the remainder of the year the demand for funds in the eastern industrial centers abated, resulting in continued reduction in the demands by member banks for accommodations at Federal Reserve Banks. In consequence, since early in May no eastern Federal Reserve Bank, other than that of New York as noted below, has been a borrower from other Reserve Banks. Member banks in New York City have experienced heavy withdrawals of funds by their interior and southern correspondents in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 ANNUAL REPORT FEDERAL RESERVE BOARD. agricultural sections,, with the result that it has been necessary for New York member banks to rediscount heavily with their Federal Reserve Bank. These withdrawals, evidenced by almost continuous losses through the gold settlement fund, have caused the Federal Reserve Bank of New York to rediscount with other Federal Reserve Banks from time to time since July in substantial amounts. All of the Federal Reserve Banks, with the exception of those of Cleveland and Richmond, have both extended accommodation to and received accommodation from other Federal Reserve Banks during the year. While the Federal Reserve Bank of Cleveland has discounted continuously for several of the other Federal Reserve Banks, the Federal Reserve Bank of Richmond has been a continuous borrower from other Federal Reserve Banks except for a short period in February and March. The same spontaneous spirit of cooperation between the Federal Reserve Banks in entering into these transactions, referred to in the last annual report of the Board, has continued throughout the year, and it has been unnecessary, therefore, for the Federal Reserve Board, in any case, to exercise its statutory power to require such operations. The same efficient methods of consummating these transactions, with the employment of the leased telegraph-wire system and the settlement of all payments through the gold-settlement fund "without any physical transfer of gold, described more completely in the last annual report of the Board, have been continued, In the following table is shown the amount of inter-Federal Reserve Bank accommodation and the actual and adjusted reserve percentages of each Federal Reserve Bank as of December 26, 1919, and December 30, 1920: [Amounts in thousands of dollars.] Ratio of total reserves to combined net Bills discounted deposit and Federal Reserve note ^ithTSSdto \ for or purchased liabilities. from other Fedother Federal i eral Reserve Federal Reserve Reserve Banks. | Banks. Bank. Actual. Adju Dec. 26, Dec. 30, I Dec. 2 Dec. 30, Dec. 26, Dec. 30, Dec. 26, Dec. 30, 1919. 1920. 1919. 1920. 1919. 1920. 1919. 1920. Per cent. Per cent. Per cent. Per cent. Boston.... 69,899 16,575 44.0 55.3 24.3 59.5 N ew York I 58,201 6,917 40. Q 40.0 36.2 39.5 Philadelphia | 27,615 17,109 40.8 54.2 32.7 58.7 Cleveland 12,265 81,573 46.3 59.1 49.4 75.9 Richmond 10,000 | 5,080 40.9 45.4 43.5 40.3 Atlanta.. 33,659 5,065 52.8 40.7 55.2 24. 8 Chicago 60,090 50.6 40.4 58.8 40.4 St. Louis 29,022 46.5 44.5 60.5 44.5 Minneapolis 14,801 i 39.4 39! 8 39.4 27.7 Kansas City 13; 000 29,086 9,805 43.1 41.4 41.3 25.2 Dallas 27,711 32,123 49.4 41.8 77.0 17.5 San Francisco 15,265 6,917 54.9 49.3 59.3 51.1 Total I 168,715 122,174 108,715 | 122,174 44.8 I 45.4 44. 8 i 45.4 1 Adjusted percentages are calculated after increasing or reducing reserves held by the amount of ac- Digitized focro FmRmAodSaEtioRn extended to or received from other Federal Reserve Banks. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL BEPORT FEDERAL, RESERVE BOARD. 49 As has been stated elsewhere in this report, there has been a continuous growth and development in the acceptance market in New York, which is the principal acceptance market of the country, and the Federal Reserve Bank of New York, in support of this market, has heQTi a daily purchaser of bills. Under an agreement approved hy the Federal Reserve Board, for the purpose of distributing* the load in connection with the development and support of the open market in New York, the Federal Reserve Banks of Cleveland, Chicago, and San Francisco have participated daily in the open-market purchases of the Federal Reserve Bank of New York. The Federal Reserve Bank of San Francisco also purchased additional bills from the Federal Reserve Bank of New York from time to time as it had surplus funds available for investment. In order to maintain the open market for bankers' acceptances it has been necessary for the Federal Reserve Bank of New York, as already stated, to make daily purchases of bankers' acceptances, and, very often, to make heavy purchases at times when its own reserves were at their minimum legal limits. Accordingly, at such times, other Federal Reserve Banks having surplus funds, with the approval of the Federal Reserve Board, have made large purchases of bankers' acceptances from the New York Reserve Bank. In cases where Federal Reserve Banks have of their own initiative purchased acceptances from other Federal Reserve Banks with the approval of the Board the indorsement of the selling bank usually has not been given, but where the Board has requested a Reserve Bank to rediscount bankers' acceptances for another, the selling bank has been required to indorse the bills sold. The total open-market purchases of acceptances by the Federal Reserve Bank of New York amounted to $2,429,982,000, of which $782,652,000 were immediately allotted to other Federal Reserve Banks in the amounts indicated in the table below. Rediscount operations between Federal Reserve Banks including bills purchased from other Federal Reserve Banks during the year have amounted to $3,672,792,000, as compared with $2,658,254,000 daring the year 1919, and $660,638,000 during the year 1918. Adding to these transactions the bills purchased and allotted to other Federal Reserve Banks by the Federal Reserve Bank of New York, the total interdistrict movement of bills during the year aggregated $4,405,444,000, as compared with $3,397,753,000 for 1919, and $835,498,000 for 1918. The figures in detail appear in the following table: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 ANNUAL EEPORT FEDERAL RESERVE BOARD. Inter district movement of discounted and purchased paper "between Federal Reserve Banks during the period from Jan. 1 to Dec. SI, 1920. [In thousands of dollars.] Inter-Reserve Bank rediscounts and Acceptances pursales cf— chased in open Net infcerdistrict market for ac- movement of discount of other counted and pur- Discounted paper. Purchased paper. Federal Reserve chased paper. Banks. c R o b u e y n d - t i e s- d co f D o u r i n — s t - ed b So y l - d c b h P a u y s - r e - d By- F c o o o f r u — a n c t - f E m r m o x m o c e v e n — e s t - s E m m t x o o e c — v e n e s t - s Federal Reserve Bank of— Boston 969, 884 20,846 30,673 6,569 986,280 New York 375,000 479, 581 147, 215 11,067 732,652 764, 219 Philadelphia 371,600 144, 579 35,149 191, 872 Cleveland 1, 406,172 50 72,710 242,000 1,120,832 Richmond 700,000 325 699,675 Atlanta 307, 997 52,000 5,087 400 250, 510 Chicago 255, 000 168, 500 28,178 5,090 217,642 108,054 St. Louis 309, 499 13,000 6,000 250 302,249 Minneapolis 293, 500 40, 029 375 253,096 Kansas City 411,638 20,000 5,049 450 386.137 Dallas 436,013 143, 000 500 292,513 San Francisco 23, 500 10, 258 47, 722 264,141 325,105 Total 3,460, 245 3,460, 245 212, 547 212, 547 732, 652 732, 652 3,140, 271 3,140,271 DEVELOPMENT OF THE ACCEPTANCE MARKET. Appreciable progress has been made during the past year in the development and broadening of the market for bankers' acceptances. While the Federal Reserve Banks have continued to be the greatest influences in this market, the higher rates commanded by credit throughout the world have resulted in a substantial broadening of the market for prime dollar acceptances. As commercial and Reserve Bank rates have advanced, bankers' acceptances have been offered on a relatively higher basis and this fact, coupled with the better understanding of their liquidity and desirability as secondary reserves, has gradually added to the list of those who are accustomed to invest surplus or idle funds in this form of security. While in former years only a comparatively small number of the larger and better-informed banks made a practice of buying acceptances, the bill dealers now have as their customers many corporations, firms, and individuals, in addition to an increased number of banks, large and small. Several State legislatures have amended banking laws by specifying bankers' acceptances as eligible investments for savings banks, thus opening a new channel for the distribution of acceptances. During a greater part of the year dealers have reported an improved demand, especially for bills accepted by the best-known banks, and have offered such bills unindorsed at a discount rate of from 6 to 6f per cent for various maturities. While the market Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 51 has been characterized by a more rapid turnover than formerly, the Federal Reserve Banks in some of the larger centers have found it essential to lend active support to the market and have continued the practice of carrying for dealers a part of their holdings for 15day periods under a repurchase agreement, pending distribution. The purchases of bankers' acceptances by all the Federal Reserve Banks were larger during 1920 by approximately $300,000,000 than in 1919. This increase is not excessive or remarkable, however, when consideration is given to the large volume of business transacted which called for acceptance credits by banks and bankers. The principal market into which bankers' acceptances flow from the entire country is New York and it follows, therefore, that the Federal Reserve Bank of New York must bear the brunt of the burden of sustaining and developing the market. This bank during 1920 purchased bankers' acceptances for its own account and for the account of other Federal Reserve Banks in value about $479,084,000 greater than in 1919, this increase for the New York bank being largely offset by decreases in amounts of open-market purchases by other Federal Reserve Banks within their own districts. The pressure upon the Federal Reserve Bank of New York, caused by these purchases, has been relieved and distribution of bills effected by sales to member banks and by allotments to other Federal Reserve Banks. The development of the acceptance market in New York has been aided also by the special acceptance service offered to its member banks by the Federal Reserve Bank of New York. The bank purchases for its member banks indorsed bills of the kinds and maturities which it is accustomed to purchase for its own account, carries them in custody, sells them when desired and collects them at maturity. This service is rendered without charge and has made it easy for any member bank to keep excess funds employed constantly and profitably through continued or occasional investments in prime bills. During the year the Federal Reserve Banks of New York, Philadelphia, Cleveland, Chicago, and San Francisco purchased acceptances in a larger amount than in 1919, while the Federal Reserve Banks of Boston, Richmond, Atlanta, St. Louis, Minneapolis, Kansas City, and Dallas purchased smaller amounts than in the preceding year. Although decreases are noted in the volume of purchases made by the Federal Reserve Banks of Boston and Richmond, these two institutions have accomplished good results in popularizing acceptances as investments for their member banks. The result of these influences combined has been apparent in the increase during the year by over 100 per cent in the number of bill buyers in the Boston Reserve Bank district. The Federal Reserve Bank of Richmond continued the practice of buying unindorsed bills direct from the acceptors at commercial paper rates, feeling that this policy is warranted as it Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 ANNUAL REPORT FEDERAL RESERVE BOARD. keeps the bank well informed as to the methods used in giving acceptance credits by its member banks. This bank also purchases acceptances for member banks, the names of the acceptors being specified by the bank for whose account purchase is made, It is believed that the reduced volume of bills offered this bank during the past year is the result of efforts which have been made to induce member banks to sell their acceptances to dealers rather than to the Federal Reserve Bank. As a ride, member banks of the South, Southwest, and some portions of the West have used their acceptance powers to a limited extent only, and the Federal Reserve Banks of Atlanta, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco report that acceptances are being bought almost exclusively by banks in the larger centers. The Federal Reserve Bank of Philadelphia purchased approximately $27,183,000 more of bills in 1920 than in 1919, and has succeeded during recent months in developing a broader market for bills in its district. Reports from the Federal Reserve Banks of Cleveland and Chicago indicate that their markets have been enlarged during the past year, mainly through the efforts of their member bank relations departments. In Chicago the volume of sales and distribution, according to dealers' reports, is showing steady increase, comparative sales in the Chicago district made month bymonth during 1919 and 1920 showing an increase of over 100 per cent in volume of sales and of 150 per cent in the number of purchasers. When consideration is given to the important part played by bankers' acceptances in the movement of farm products and manufactured goods to market, the Board feels that the efforts being made to broaden the bill market will meet with general approval. Below are shown the amounts of acceptances bought in the open market b}7, or for the account of, each Federal Reserve Bank during the past four years: Bills houf/ht in open market. [Amounts in thousands of dollars.} Federal Reserve Bank. 1917 1018 1019 1920 Boston 86,481 194,158 360,784 304,445 New York 445,307 045, 403 1,211,390 1,697,330 Philadelphia.. 70,710 77,686 14,049 41,232 Cleveland 5i;007 122,800 261,750 204,602 Richmond 54,759 70, 766 52,977 51,712 Atlanta 25,388 45t477 51,661 39,576 Chicago 61,142 122,787 292,012 345,021 St. I/Ouis 22, 788 26,096 87; 503 36,020 Minneapolis 16,397 13,903 108,714 18,060 Kansas City.... 17, 561 14,691 26,086 17,173 Dallas *..... 9,743 25,024 12, 415 8,348 San Francisco., 48,018 150,653 345,827 364, S45 Total.. 909,301 1,809,539 2,825,177 3,218,364 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 53 CANCELIATIONS, To some extent throughout the entire year 1920, but with an increasing degree of importance during the latter part of the year, the matter of cancellation of contracts has assumed a sinister significance in American foreign trade, The practice is one which has affected both the commercial and banking aspects of the situation. Cancellations have been, numerous in important exporting lines, while the action, of some American importers in cancelling orders for textiles which they had placed in England caused so much inconvenience and aroused such criticism as to lead to an appeal in November last by organized textile trades of the United Kingdom to the United States Chamber of Commerce. Certain phases of the practices which have developed within the past few weeks especially have raised at least two serious questions: 1. How far have cancellations resulted in leaving considerable quantities of American goods without actual buyers in the countries to which the goods have been shipped ? and 2. How far have cancellations affected the status of drafts drawn against letters of credit issued by American bankers? The facts relating to cancellations have been reviewed in a report filed with the Chamber of Commerce of the State of New York on December 3, reading as follows: The wave of cancellations of buying orders and repudiations of contracts of sale by buyers which at present is sweeping the world and is menacing also the United States, lias called forth a great concern in business and banking circles. The dangers of the situation have been called to the attention of your committee on finance and currency, and a request made that an investigation into the situation be made. Accordingly, data were collected from large trade associations, covering the United States in various lines of business, upon the volume and character of cancellations and their comparison with previous years. The result of this investigation, which has been printed in the November issue of the Chamber's Bulletin, showed that, in many lines, cancellations were of a very important and menacing volume. It seems obvious that loose business' methods which enable purchasers to reject goods when prices decline and to insist upon prompt shipments according to contract when prices are rising, will cause a perilous business derangement at every downward turn. The uncertainty created by the sway of such vicious practices extends far beyond the two parties immediately affected. It spreads like a contagious disease and ultimately undermines and menaces the safety of all branches of production, trade, and finance of the country; for our whole economic structure rests upon a contractual basis and upon a clear recognition of the sanctity of business obligations. Steps should be taken to remedy this evil. The discipline of a written contract enforceable at law should be more generally applied, together with a nation-wide vigorous condemnation of those indulging in such objectionable business practices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 ANNUAL KEPOKT FEDEKAL, RESERVE BOARD. Your committee, therefore, offers the following resolutions: Resolved, That the Chamber of Commerce of the State of New York deprecates the present tendency among many buyers of goods to cancel their orders or repudiate their contracts; and be it further Resolved, That an effort should be made on the part of the business community to incorporate into written contracts a frank stipulation respecting cancellations, in order that business may be established on a clear and definite contractual basis, and that the possibilities of misunderstanding and disagreement may be lessened and an element of dangerous uncertainty be removed; and be it further Resolved, That the chamber of commerce urge upon the business and banking communities that buyers who disregard their written agreements shall be considered as being lacking in business morality and as undeserving of confidence, and that business and banking leave no doubt that attempts willfully to violate contracts shall be frowned upon as violating the code of business ethics on which rests the entire structure of American industry, commerce, and trade. Exact figures as to the probable scope of the cancellation evil can not be secured at this time, but it may be stated that the practice has become so common as to affect seriously the ability of American exporters to collect against their shipments to foreign ports. The most acute aspects of the situation are seen in those countries which have found it practically impossible to ship their goods at profitable rates to the United States or which have had so unfavorable a domestic credit position that they have felt it necessary- to establish moratoria—with or without legal sanction. This situation has affected particularly our trade with South America and the Orient. At some ports a large volume of American goods has accumulated wThich consignees have declined to receive. For such shipments, therefore, there is available neither dollar exchange nor local bank credit. Reports from Brazil, Argentina, Paraguay, and Cuba emphasize this aspect of the situation and show that important exportations have brought no returns, the goods being practically thrown back upon the hands of shippers who have been obliged to finance themselves as best they might at their own banks. One result of this condition has been a certain amount of mortality among exporting houses, while others have been obliged to lean more heavily upon the banks than they would otherwise have found it necessary to do. While such conditions are of grave consequence from the banking standpoint at a time when world finance and trade conditions are seriously disturbed, and when the maintenance of the export trade is so vital, the resultant situation has peculiar significance to the banks because of the influence it exerts upon acceptance conditions. It will be remembered that prior to the enactment of the Federal Reserve Act, American banks in foreign transactions had always relied mainly upon credits furnished by British banks and stated in terms of sterling. As the result of the growth of the number of accepting banks under the Federal Reserve Act and the effort to convert Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT FEDERAL RESERVE BOARD. 55 our foreign credit as far as possible into terms of dollars there has devolved upon our institutions a new responsibility in connection with financing of foreign trade. This was recognized from the first as one of the advantages of a revision of the banking system, American banks have not only been encouraged to enter the acceptance field, but the argument has frequently been made that they ought to do so in order that the financing of American business might not rest so largely in the hands of foreigners. Owing to the great changes brought about by the war it has also been asserted that the adoption of this method of financing was really necessary in order to meet the emergencies which the contest had created. In undertaking such financing American bankers have in many instances issued letters of credit covering importations into the United States. The terms and conditions of the credits thus opened have, of course, varied considerably, since there is no uniform practice among the banks of the country with respect to the wording of document's used in their foreign trade operations. The letters of credit which have been issued are in many cases, however, irrevocable, and provide for the acceptance of drafts drawn on time or the payment of drafts drawn at sight, with such conditions and requirements regarding the character of the documents to be attached as are usual in the movement of consignments in international trade. The sudden fall of prices which has occurred in many lines has, however, caused many importations to show very material decreases in value between the time of their shipment from the foreign port and their arrival in the United States or between the time they were contracted for under agreements that letters of credit be furnished and their arrival. In some instances the presentation of drafts with the documents attached to the banks which had issued the letters of credit obviously meant that these banks were asked to make payments against the goods covered by the invoice, which, as already explained, may have fallen seriously below their value at the time they were shipped or contracted for. Many of these credits had been opened by large banks at seaports at the request not of their own depositors but of interior banks. As these institutions usually operated no foreign-exchange departments of their own it was customary for them to ask some correspondent bank, located at a port of entry, to issue letters of credit for account of their own customers. The question, consequently, arose in the minds of many bankers whether the engagements undertaken in letters of credit could be avoided, and this idea has had a color of justice in those cases where goods and documents forwarded by exporters in foreign countries did not technically comply with the conditions set forth in the terms of the letters of credit. At the solicitation of their country correspondents some bankers have declined to accept drafts drawn 45525°—21 -5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 ANNUAL REPORT FEDERAL RESERVE BOARD. under letters of credit already outstanding, while in other cases, importers themselves, desirous of avoiding loss or feeling that some breach of contract had occurred, have obtained injunctions against the banks which had issued the letters of credit directing the banks not to pay out funds under the terms of such letters. Several injunction cases of this kind are now pending in the Federal courts. Twenty-four injunctions were vacated on December 15 in the Supreme Court of the State of New York. This situation is most unfortunate and is reflecting very seriously upon American bankers5 acceptances. It makes plain that many American bankers, including, of course, their legal advisers, are not well informed as to the obligations assumed when irrevocable or confirmed letters of credit are issued. In the financing of an importation there are several possible combinations of parties at interest. Although a shipment is made direct by the exporter in a foreign country to the importer in the United States, the seller does not usually rely upon the unsupported credit of the foreign buyer and generally requires a bank guaranty. The importer, therefore, calls upon his bank to lend its credit to the transaction and thus the exporter is given the right to draw upon a banking institution instead of a commercial house. But even this added responsibility does not always satisfy the exporter, who may prefer funds in his own country, and, in this event, the American bank requests a correspondent foreign bank to notify the exporter that it will negotiate his drafts. He may, therefore, sell his bills of exchange either to the notifier or to his own local bank. Hence, a letter of credit may involve such different parties as the importer, credit issuer, notifier, negotiator, &ny indorser of the completed drafts, and lastly the exporter. The legal relations between these parties have been quite definitely settled by certain British and Colonial cases rendered during the last half century, when Great Britain was extending her trade all over the world. The decisions in these cases involving commercial letters of credit established the following principles: (1) A letter of credit is not a negotiable instrument. (2) It does not create a trust fund in favor of the beneficiary. (3) An issuer of a letter of credit may not dishonor drafts presented by a negotiating bank under a clean, irrevocable letter of credit if all the terms of the credit are fulfilled. (4) An issuer may dishonor bills drawn in violation of the conditions specified in a documentary letter of credit, (5) The negotiator is not liable for the genuineness either of goods or documents. (6) The issuer is responsible to the party requesting the credit for the observance of the conditions by the beneficiary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL, EEPOET FEDERAL EESEKVE BOARD. 57 The further principle is established also by the British cases and confirmed by two decisions recently made by New York courts: (7) The contract between the issuer and the beneficiary is entirely independent of the contract of sale between the buyer and seller, and the issuer can not, because of the seller's breach of the contract of sale, refuse to honor drafts which comply with the terms of the letter of credit, Only recently have American courts had occasion to pass upon cases relating to commercial letters of credit where the issues involved have been fully presented. Upon principle, however, and judging from the few decisions which have been rendered by our courts within the last year, there appears to be no reasonable doubt that the practices which have evolved under British law will be found to govern in our own transactions, Such a development will be necessary if American credits are to command the respect abroad necessary to compete with those given by foreign banks which engage in financing international trade. Otherwise buyers of bills in foreign countries would decline to purchase drafts on American bankers. The Federal Reserve Bulletin for February, 1921, will contain fuller discussion of the legal relations between the parties to commercial letters of credit as established by the cases which have been cited by the British courts, and will contain also a review of the leading British cases upon this subject and of the few important decisions which have recently been rendered by American courts, CHANGES IN DISCOUNT KATES DURING 19 20, During the latter part of 1919 the Federal Reserve Banks had, with the approval of the Federal Reserve Board, abolished preferential rates formerly obtaining on paper secured by Liberty bonds and Victory notes and in January, 1920, shortly after the Treasury raised its rate on certificates to 4| per cent, the Board approved a like increase in the rate, of discount on paper secured by certificates of indebtedness as well as, in the case of most of the banks, on trade acceptances offered for discount. Thus for a time the rates on commercial paper proper and on paper secured by all classes of Government war obligations were practically on a parity. Toward the end of January, however, the rate on paper secured by Liberty bonds and Victory notes was advanced to 5J per cent and the rates on all classes of commercial paper, including trade acceptances and agricultural and live-stock paper, to 6 per cent. A preferential rate of 5 per cent was established on bankers' acceptances, to apply, however, only where the acceptances were offered to the Federal Reserve Bank for rediscount by a bank other than the accepting institution. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 ANNUAL REPORT FEDERAL RESERVE BOARD. Eight of the Reserve Banks advanced this rate to 5 J per cent in April and May, while five banks, including two of those which had advanced the rates in April and May, raised it to 6 per cent in June and July. Rates on commercial paper and on agricultural and live-stock paper were advanced in June to 7 per cent by four banks, and the trade acceptance rate to the same level by three of the same banks, the fourth bank advancing it to 6J- per cent. Bates on paper secured by Treasury certificates of indebtedness have been raised frequently during the year in keeping with the Board's policy to have such rates correspond with the rates borne by the certificates themselves, thus enabling the banks to carry the certificates without loss pending their distribution to customers, but offering them no inducement through a spread in rates to retain the certificates as an investment instead of passing them on to the public, Following the amendment of section 14 of the Federal Reserve Act, approved April 13, 1920, permitting the Federal Reserve Banks, with the approval of the Board, to establish graduated rates of discount the banks located at Kansas City, Dallas, St. Louis, and At- ? lanta established progressive rates of discount, effective April 19, May 21, May 26, and May 31, respectively. The progressive rates are assessed against amounts discounted for member banks in excess of their " basic " or " normal" lines, the latter being determined by the Federal Reserve Bank uniformly for each member bank in the district. In the case of the Atlanta, St. Louis, and Kansas City banks the basic line adopted was 2J times a sum equal to 65 per cent of the reserve balance maintained or required to be maintained by the member bank, plus its paid-in subscription to the capital stock of the Federal Reserve Bank, while in the case of the Dallas bank the basic line was fixed at an amount equal to the combined capital and surplus of each member bank. Under the progressive rate plan, discounts granted in excess of the basic lines are subject to one-half per cent progressive rate, in addition to the normal rate, for each 25 per cent b}^ which the amount of accommodation extended to the bank exceeds its basic line, although certain exemptions in the case of paper secured by Government obligations are allowed. In order that the discount policy of the banks might not adversely affect the market prices of Government securities, or work a hardship on those still carrying a large part of the Liberty bonds representing original subscriptions, none of the four banks applied the progressive rates to paper secured by United States Government war obligations. Since the progressive rates apply only to excess borrowings—that is, to borrowings in excess of the normal or basic line—a bank obtaining accommodation to the extent of twice its basic line would be subject to a maximum penalty of 2 per cent. This 2 per cent, however, would apply only to the last increment of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 59 25 per cent of the basic line so that the average penalty calculated ? on its entire borrowings would be about 0.625 per cent. Likewise not until a bank has borrowed an amount equal to 2-| times its basic line will the average excess of the charge over the basic rate amount to 1 per cent on its total borrowings, thereby imposing a surcharge equal to the difference between the normal 6 per cent rate prevailing at those banks which have adopted the graduated rates, and the uniform 7 per cent rate adopted at about the same time by four other Federal Reserve Banks. In the case of the Kansas City bank, superrates are applied to excess borrowings at the time the loan is granted to the member bank, while in the case of the other Federal Reserve Banks the progressive rate is applied only to the average borrowings in excess of the basic line over a fixed period-. Only in isolated cases, especially where a bank has allowed its reserve balance with the Federal Reserve Bank to fall materially below legal requirements, thus reducing substantially its basic line, have excessively high graduated rates been applied, the usual surcharge ranging generally from •£ to 2| per cent. While beneficial results have been obtained through the application of progressive discount rates, it is not expected that their application will prove a more efficient means of credit control than is the flat 7 per cent rate on commercial paper adopted by some of the Federal Reserve Banks, at least not until such time as it is deemed advisable to withdraw the exemption on loans secured by Government war obligations, or until the volume of such paper presented for rediscount at the Federal Reserve Banks is materially reduced. It may be noted here that the Atlanta bank on November 1, with the approval of the Federal Reserve Board, discontinued the application of graduated or progressive rates, and adopted the 7 per cent rate on all paper other than that secured by Government war obligations and on discounted bankers' acceptances. The following table shows the amount of discount earned by the Federal Reserve Banks through the application of progressive rates during each month in 1920: Atlanta. St. Louis. K C a i n ty sa . s Dallas. April $4,711 Mav :::::::::::: $1,427 29,710 $476 June $5,831 21,174 27,516 3 193 Julv 19,488 13,174 41.296 6,837 August 33,911 30,551 37! 721 9 809 September 35,113 31,044 41,980 13,407 October 65,666 38,296 69,267 16,295 November 36,419 98,571 72,627 12,510 December 156,940 61,944 13,962 Total 196,428 391,177 386,772 76,489 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

60 ANNUAL KEPORT FEDERAL RESERVE BOARD. Discount rates obtaining on January 1,1920, at the Federal Eeserve Banks on the several classes of paper, and the changes made during the year 1920, are shown in the following tables: Commercial and industrial paper maturing -within 90 days. In Changes effective. Federal Re- effect serve Bank. Jan. 1, j i 1920. Jan. 3. Jan. 12. Jan. 23. Jan. 24. Jan. 26. Jan. 28. Feb. 2. June 1.June 4.Nov. 1 I Boston i 4-a 6 7 New York 4-2- 6 ! ! 7 Philadelphia .. 4f 6 5 Richmond 4f 6 Atlanta... 4| 6 7 Chicago 4f 6 . . : 7 St Louis .. . 4^ 6 Minneapolis ! x 4f 6 Kansas City...! 5 6 D Sa a n ll a F s r ancisco.! i 4 5 -| ! ; 6 6 ;i 1 Rate of 5 per cent for maturities 61 to 90 days. Agricultural and live-stock paper maturing after 90 days hut within 6 months. In Changes effective. Federal Re- effect serve Bank. Jan. 1, 1920. Jan. 3. Jan. 12. Jan. 23. Jan. 24. Jan. 26. \ Jan. 28. j Feb. 2.June 1.June 4.Nov. 1 Boston. ...... 5 6 ! New York 5 6 i 7 Philadelphia. . 5 6 ; i Cleveland ! i hi Richmond 5 6 I Atlanta i 5v> 6 i i 7 Chicago i oj 6 St. Louis.. 5J 6 Minneapolis < F>K (3 Kansas Citv. 5% 6 j ! I j Dallas " 5% i 6 San Francisco. ! i j Paper secured by Liberty bonds and Victory notes—maturing within 90 days. |. Federal Reserve Bank. |i Boston... . . .. New York 4a Philadelphia AA Cleveland 4-i Richmond . 4a Atlanta . „ l\ Chi cap"0 A* St. Louis..... 4-1 Minneapolis. 1 4^. Kansas'City 5 Dallas . .. 5 San Francisco 4=1 .3 .naJ Changes eHec .. .1 -,I 5 2 i .42 .naJ .62 .naJ 06 d CD 51 51 51 I | ...J.... .1 yaM | tivc. I 6 Kl .SyaM .31 yaM | | 4 i" " 5a .1 enuJ 1 1C 00 M * 3 U 0) 1 6 •-•T'"' 1 Rate of 5 per cent for maturities 61 to 90 days. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL BEPOET FEDERAL RESERVE BOARD. 61 Paper secured by United States- Treasury certificates of indebtedness—maturing within 90 days. In Changes effective. Federal Reserve (? fleet Bank. Ja 1 n , . Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Feb. Feb. Feb. Feb. 1920 3 5. 6. 10. 12. 24. 25. 26. 27 28 "B oston i 41-4^ 4| 5 New York 4| Philadelphia AS 41- 5 Cleveland 2 U Richmond... A\ 4f Atlanta 4 4f Chiopijjo 4| 5 St Louis Ah 4| Minneapolis 41 3 41 4.%- Dallas 4| 41 1 5 ; i San Francisco Ah ! i II 4-3- Changes effective. Federal Reserve Bank, Mar. Mar. Mar. Apr. Apr. Apr. Apr, Apr. Mny May Mav May May 1. 4. 10. 20. 21. 22. 26. 17. 20." 21." 27. 130° ton "N"PW Vork I Philadelohia I 15-5V 5 1 i 5 5-1 i - Richmond 1 5-5-i Atlanta 15-5i 1 n-nl 1JWV-V i "_^i 1 5-5 \ Ivfi n neanolis 15-51- TCi nsas Citv ' i San Francisco ; 5 ' Changes effective. Federal Reserve Bank. June June June June June July July 1 July July July July i 1 July Oct. 4. 10. is. 1. 2. { 3. 10. 12. 13." ID.* 1. I T5 oston Mpw York ... Phi!q,dprohia 1 5 6 j (Cleveland 5i 1 1 54-6 Richixiond 5k j 15a-6 C \t h t i l c a a p g t o a 5s 1 i 5 ft i5.\-fi St I ouis M in n eaDolis 54 ! i S-fi i i Dallas 1 5 6 San Francisco 1 Discount rate corresponds to interest rate borne by certificates pledged as collateral with maximum and minimum limits shown. 2 Rate of 4| per cent on member banks' collateral notes secured by certificates bearing interest at 4f per cent. 3 Rate of 5 per cent for maturities Gl to 90 days. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

62 ANNUAL REPORT FEDERAL RESERVE BOARD. Bankers' acceptances, discounted for member banks, 'maturing within three months. Federal Reserve Bank. "CD 1~"1 i 1 Boston 0) New York 4- Philadclrahia . (l) Cleveland Richmond Atlanta -. Chicago St. T,oui«5 Minneapolis . Kansas City Dallas San Francisco.. .21 .na Ah 5 (i) (i) .32 .na 5 5 (i) (i) (ij 5 n\ .42 .na .62 .na re 5 .72 .nar Changes effective. <M* T—I 03 .1 .rpV 1 DO !>> 2 1 6 r)T . 1 51 51 51 .... 51 5 5 5?j t 1 .4 enu .21 ylu j 0 | ...... 1 6 ... .1 .tcO .02 .tcO i 6 .... o4 .... i i .... i 6 1 1 " .1 .voN 6 1 No special rate. Bankers' acceptances presented for discount subject to regular commercial paper rate. NOTE7—The rates established during 1920 on bankers- acceptances presented for discount applied only to such bills as had been accepted and sold to banks other than the accepting bank or to other holders, and which were offered to the Federal Reserve Bank for rediscount by some bank other than the accepting bank. Acceptances presented for rediscount by the accepting bank were subject to the regular commercial paper rate. Trade acceptances discounted for member banks, maturing within 90 days. Changes effective. In effect Federal Reserve Bank. Jan.l, 1920. Boston New York...... .1 .. 7 Philadelphia.. Cleveland 5! | Richmond Atlanta. ., Chicago St. Louis Minneapolis 6i I- Kansas City Dallas San Francisco.. Minimum rates on acceptances bought in open market, maturing within three months. Changes effective. In Federal Reserve Bank. J e a ff n e . c 1 t , j 1920. Jan. 5 Jan. 24 Jan. 26. Jan. 28.1 Feb. 2. Feb. 6. June 1 Oct. 1. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas 51 I San Francisco 51 NOTE.—On Feb. 26, 1920, the Board ruled that thereafter, when acceptances were purchased from the accepting institution, the rate charged was to be not less than the discount rate on commercial paper effective at that time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 63 Paper secured by War Finance Corporation bonds. Discount rates on paper secured by War Finance Corporation bonds, established during 1919 at 1 per cent in excess of rates on commercial paper of corresponding maturities, were discontinued on April 1, 1920, all outstanding War Finance Corporation bonds having matured en that date. Graduated discount rales. (Authorized by Apr. 13, 1020, amendment to Sec. 14 of the Federal Reserve Act.) Established byFederal Reserve Bank of— Da l t is e h e e s d ta . b- c D on a t t i e n d u i e s d - . Atlanta May 31,1920 Nov. 1,1920 St Louis May 26,1920 Kansas City Apr. 19,1920 Dallas May 21,1920 CHECK CLEARING AND COLLECTION. Substantial progress has. been made during the year in the development of the Federal Reserve check clearing and collection system. During the year 11 States—Virginia, West Virginia, Kentucky, North Carolina, Arkansas, Arizona, Wisconsin, Minnesota, South Dakota, Washington, and Oregon—have been added to the number of States in which all banks are on the par lists of the Federal Reserve Banks. On January 1, 1920, checks on all but 3,996 of the 29,557 banks in the United States could be collected at par through the Federal Reserve Banks. On January 1, 1921, checks on all but 1,755 of the 30,523 banks in the United States could be thus collected. These 1,755 banks are all located in the following seven States of the Southeast: Tennessee, South Carolina, Louisiana, Mississippi, Alabama, Georgia, and Florida. Consequently, every bank in 9 of the 12 Federal Reserve districts is on the par lists, the three districts in which there remain any nonpar banks being those of Richmond, Atlanta, and St. Louis. This development in the check clearing and collection system has been accomplished in the face of continuous opposition on the part of some member and nonmember banks. It is evident that as the merits of par collection are becoming more widely known fewer banks are participating in the opposition, but the banks which continue to oppose par collection are well organized and their opposition appears to be as vigorous as ever. In order to present clearly the issue involved in the controversy over par collection, it is necessary to review the history of the development of the check-collection system under the Federal Reserve Act. That history is given at some length in the letter of the Governor of the Federal Reserve Board, dated January 26, 1920, to the President of the Senate in response to Senate resolution No. 284 of January 19, 1920. This letter was printed as Senate Document No. 184. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

64 ANNUAL REPORT FEDERAL RESERVE BOARD. The provisions of the Federal Reserve Act which relate to check clearing and collection were last amended by the act of June 21, 1917. Section 16 provides that the Federal Reserve Board may act as a clearing house for the Federal Reserve Banks and may require those banks to act as clearing houses for their member banks. Section 13 as amended by the so-called " Hardwick amendment" of June 21, 1917, provides that Federal Reserve Banks may receive on deposit u checks and drafts payable upon presentation," the checks which those banks are authorized to receive on deposit not being limited, as they were prior to the amendment, to checks on " solvent member banks." The proviso at the end of the first paragraph of section 13 reads: That nothing in this or any other section of this act shall be construed as prohibiting a member or nonmember bank from making 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. As construed by the Attorney General, and as recently held by the United States Circuit Court of Appeals, Fifth Circuit, these provisions prohibit the Federal Reserve Banks from paying exchange charges to member or nonmember banks. It is apparent that if Federal Reserve Banks in their capacities as clearing houses are to render full service to their member banks, they must clear checks drawn on all banks including those nonmember banks, now few in number, which decline to remit at par. Consequently, the Board has approved the action of the Federal Reserve Banks not only in soliciting nonmember banks to agree to remit at par but also in collecting by presentation at the counter checks drawn on nonmember banks which decline to remit at par. Opposition on the part of the banks against par collection has taken various concrete forms. Since Federal Reserve Banks can not pay exchange charges, when nonmember banks refuse to remit at par the Federal Reserve Banks have no choice, if they are to collect the checks drawn on those nonmember banks, but to make presentation of such checks at the counters through selected agents. These agents may be employees of the Federal Reserve Banks or may be banks, express companies, or any other suitable agents located in the same town. The employees and agents of the Federal Reserve Banks have encountered various obstacles in making presentation of checks, such as the tender of payment in a manner calculated to take as much time as possible, or the refusal of payment in reliance on the inability of the agent to find a notary public willing to make protest. The Board has been advised of one instance where a duly appointed agent has Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL, REPORT FEDERAL RESERVE BOARD. 65 within a few days after appointment given notice to the Federal Reserve Bank that he would no longer act as agent for fear of injury to his business. Other banks, including some member banks, have resorted to the device of stamping legends on their blank checks to the effect that the check is not valid if presentation is made through the Federal Reserve Banks. On January 22, 1920, a number of nonmember banks filed a petition in the Superior Court of Fulton County, Ga., for an injunction restraining the Federal Reserve Bank of Atlanta from collecting checks drawn on the plaintiff banks in any manner other than through the mails. The suit was transferred to the United States District Court for the Northern District of Georgia, which dismissed the complaint upon the merits. The decision of the district court was affirmed by the United States Circuit Court of Appeals for the Fifth Circuit on November 19, 1920, and the case has now been appealed to the Supreme Court of the United States. The restraining order, obtained by the plaintiff banks at the commencement of the suit,' has been continued pending the appeals to the Circuit Court of Appeals and the- Supreme Court of the United States; and this accounts in large part for the fact that no material progress has been made by the Federal Reserve Bank of Atlanta in adding to the number of banks whose checks it can collect at par, The legislatures of five States, namely, Mississippi, Louisiana, South Dakota, Georgia, and Alabama, have enacted laws for the express purpose of preventing the Federal Reserve Banks from collecting, at par, checks drawn on the banks located in those States, The Mississippi law purports to require all banks within the State, including national banks, member banks, and nonmember banks, to make charges " for collecting and i emitting " cash items which " are presented to the payer bank for payment through or by any bank, banker, trust company, Federal Reserve Bank, post office, express company, or any collection agency, or by any other agency whatsoever." The laws of the four other States are not mandatory, but merely purport to give to all banks within the respective State the right to make similar charges. The laws of Mississippi, Louisiana, South Dakota, and Alabama prohibit any officer of the respective State from protesting any check for nonpayment, when such nonpayment is on account of the refusal of any such agency to pay exchange, and the laws of Mississippi, Louisiana, and South Dakota further provide in terms that " there shall be no right of action, either at law or in equity, against any bank in this State for a refusal to pay such cash item, when such refusal is based alone on the ground of the nonpayment of such exchange." The Federal Re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

68 ANNUAL REPORT FEDERAL RESERVE BOARD. serve Board has taken the position that these laws are clearly unconstitutional in so far as they purport to require national banks, and State banks which have joined the Federal Reserve System, to make exchange charges against Federal Reserve Banks. The Board has obtained no opinion as to the constitutionality of the laws in so far as they purport to affect nonmember State banks, believing that this is a question which can be settled only by the courts. Prior to the enactment of the South Dakota and Louisiana •laws, all banks in South Dakota, and in that part of Louisiana which is located in the Eleventh Federal Reserve District, had been placed upon the Federal Reserve Bank par lists, and the Federal Reserve Banks of Minneapolis and Dallas have since the enactment of those laws continued to receive for collection at par all checks drawn on those banks. In February the Board's attention was-called to certain charges made by State bankers in Nebraska that employees of the Omaha branch of the Federal Reserve Bank of Kansas City had acted in an unseemly manner and had used oppressive methods in the presentation of checks on nonmember banks. The Board held hearings on February 24, 25, and May 5 to inquire into these alleged acts and methods, at which hearings the Federal Reserve Bank officials and employees involved were examined under oath and denied the charges in every particular. The hearings were attended by a delegation of Congressmen from Nebraska, and the State bankers making the charges and their witnesses were also invited to be present. For the convenience of the latter the Board offered to have a committee of its members hold a hearing in Nebraska. No witnesses on behalf of the State bankers were produced, however, and the only evidence submitted in support of the charges consisted of a series of affidavits. In no instance, in the Board's opinion, was any specific charge of improper conduct on the part oi an employee of the Omaha branch substantiated. In view of all the circumstances, and at the request of some of the opponents of par collection, the Board concluded to present the facts to Congress for such action as that body might care to take. In accordance with this determination the Board on May 5,1920, addressed a letter to the chairman of the Banking and Currency Committee of the House of Representatives. In this letter the Board called attention to the persistent opposition to par collection and to the obstacles which the Federal Reserve Banks were encountering, and suggested that the committee might deem it advisable to consider whether the par collection of checks should continue to be a function of Federal Reserve Banks, with a view to recommending a further amendment to the law which would either remove the obstacles standing in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL EEPORT FEDERAL RESERVE BOARD. 67 way of par collection at the present time or permit both member and nonmember banks to make exchange charges against the Federal Reserve Banks, such charges, of course, to be reimbursed to the Federal Reserve Banks by the banks sanding the checks for collection. The Board is thoroughly convinced of the advantages of a universal system for the par collection of checks, and it brought the matter to the attention of Congress, not because of any doubt on its part as to the effect of the law, but because the issue involved the propriety of the legislation itself. The Board has frequently had occasion to point out that in their origin, exchange charges were justified on account of the necessity for, and the high cost of, actually transporting currency, but that under existing conditions those charges can be justified upon no scientific or economic principle, since the payment of checks at places other than where the drawee banks are located involves little expense and that is borne by the Federal Reserve Banks. Even the banks which decline to remit at par to the Federal Reserve Banks receive the benefits of the Federal Reserve check-clearing facilities by having the checks which they receive collected through a.correspondent bank which is a member of the Federal Reserve System although they contribute nothing to the strength of the system. To the extent that the practice of charging exchange is continued under the operation of the Federal Reserve System, It is an anachronism which permits the charging banks to impose a charge upon commerce and industry after they have ceased to perform the service which in former times justified the imposition of such a charge. In this connection the following is quoted from a letter dated April 1, 1920, addressed by the Board to a United States Senator: Since the establishment of the Federal Reserve Banks the cost of transferring balances from one section of the country to another has been almost entirely eliminated. Each Federal Reserve Bank carries a portion of its gold reserve in a gold settlement fund which is kept in the Treasury at Washington, and there is a daily telegraphic clearing conducted by the Federal Reserve Board for all 12 banks and for their branches. The amount of gold in the fund is practically a stable quantity, but its ownership varies from day to day according to the debits and credits to the different banks. Transfers are made by the Federal Reserve Banks for member banks, and also for nonmember banks through the medium of member banks, by telegraph without any charge whatever to the member bank or its client, all costs being borne by the Federal Reserve Banks. Thus a bank in Wisconsin or California, Maine or Texas, can secure an instantaneous transfer to any one of the 12 Federal Reserve cities or to the 20 cities where there are branch Federal Reserve Banks without any expense whatsoever, and the sum total of these transfers is settled daily through the gold settlement fund above referred to. The Federal Reserve Banks pay all costs of transporting currency to or from their member banks as well as transportation charges on currency sent them by nonmember banks in payment of checks. The total volume of transactions through the gold settlement fund in the year 1919 was approximately $74,000,000,000, and the total cost, including the ex- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

68 ANNUAL REPORT FEDERAL, RESERVE BOARD. pense of the leased wires, was about $250,000. This cost was borne by the Federal Reserve Banks and does not represent any expense whatever to the member banks or their customers. Thus it will be seen that the basic cost oi making domestic exchange in the year 1919 was 0.3 of a cent for each $1,000 transferred. A charge of 10 cents per $100 on the amount cleared through the gold settlement fund would have involved an expense of $1 for each $1,000 transferred, or about $74,000,000 for the entire amount. The intradistrict clearings made by the Federal Reserve Banks, eliminating duplications, amounted to about $135,000,000,000, and the total expense of these transfers was borne by the Federal Reserve Banks. Had the Federal Reserve Banks been obliged to pay for these transfers at the rate of 10 cents per $100, it will be seen that the total expense would have been $135,000,000, which amount is far in excess of the total earnings of the Federal Reserve Banks and therefore could not have been absorbed by them. If not absorbed, the charge would have had to have been transferred to the depositors of the checks, so it will be seen that a charge of 10 cents per $100 upon the business handled by the Federal Reserve Banks would have involved last year a cost to the commerce and industry of this country of at least $135,000,000. The Federal Reserve Board believes that the present terms of the Federal Reserve Act impose upon it the duty of developing and maintaining the Federal Reserve par collection system, while the opponents of par collection vigorously urge the contrary view. The opinion of the United States Circuit Court of Appeals, previously referred to, decisively upholds the Board's point of view, and, Congress having taken no action in the matter of further legislation on the subject, the Board will, of course, regard as binding upon all parties the final interpretation of section 13 of the Federal Reserve Act by the Supreme Court of the United States. Consequently, unless that court reverses the decision of the United States Circuit Court of Appeals, the Board will assume that Congress desires the Federal Reserve Board and the Federal Reserve Banks to continue, as heretofore, to develop and perfect the Federal Reserve par collection system. Until the United States Supreme Court renders its decision in the appeal now pending before it, the opinion of the United States Circuit Court of Appeals must, of course, be regarded as conclusive as to the construction of the law. The following extract from that opinion sustains in every respect the position which the Board has always taken that its duty under the law as it now stands is to develop and perfect the Federal Reserve par collection system. The principle that one must so use his property as not to unnecessarily and maliciously injure his neighbor, even though his act is otherwise lawful, is also invoked. Conceding that the accumulating of checks, and their presentation, when accumulated, with the intent to embarrass and injure the drawee bank, might constitute an actionable wrong and one that might be prevented hj injunction, we do not think the amended bill presents any such case. There is no specific charge in the bill of any threat to present the checks in any accumulated or oppressive manner, on which a court of equity would be justified in acting. Nor does the bill charge the appellee bank with acting from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 69 a merely malicious motive, if that is material. It does aver that the purpose of the appellee was to compel the appellants to accept the lesser of two evils and to remit at par for cheeks drawn upon it. If this charge was borne out by the exhibits, which it is not, it would not constitute legal duress, on which a legal complaint could be predicated. The exhibits show that the adoption of a system of universal par clearance was advocated in good faith by the appellee bank as a proper banking policy, and as well by Congress and the Federal Reserve Board. The adoption of appropriate means of the appellee bank to accomplish. this end can not with any propriety be attributed to malice on its part against appellants and other banks- in like condition. Nor does the adoption of the method of presenting checks over the counters of the drawee bank imply an attempt to coerce them into becoming member or depositing banks. The Federal Reserve Bank was interested to supply a universal clearance at par for its member and depositing banks. It could accomplish this only by accepting from its member and depositing banks all checks tendered it by them upon whatever banks drawn. If drawn upon a nonmember and nondepositing bank, which refused to remit at par, it was disabled under the statute from handling such checks through the method of transmission of the checks and remittance of the proceeds through the mails. It could only collect such checks by presentation in person to the drawee bank. It is therefore, reasonable to suppose that its declared purpose of making such presentations was in furtherance of its policy of furnishing complete clearing facilities to its member banks, and was not for the purpose of injuring or destroying the drawee banks, or of coercing them into becoming member or depositing banks with it. It constituted an essential step without which universal par clearance was not possible of accomplishment. In the following table are given the number and amount of checks and drafts handled by the Federal Reserve Banks during monthly periods in 1920: Items handled by all Federal Reserve Banks combined. [Exclusive of duplications on account of items being1 handled by more than one Federal Reserve Bank or Branch.] Month ending- To h t a a n l dl i e te d m . s o b b f I a a t n r e n e k m k p s s o o i r r n d t i r b n a d g r w i a s n F n t . r c i o h c R n . t . It U em n T i s r t e e d a d s r u a S w r t e a n r t . e o s n d I i t F a r b e . e n m e c d R r t s s . t o n i f d n o o m i i r s r w o e t m r t m a i h e r c b e d m t r e s e - . d rs Number. Amount. Number. Amount. Number. Amount. Number. Amount. Thousand Thousand Thousand Thousand dollars. dollars. dollars. dollars. Jan. 15,1920 33,208,287 14,044,656 31,212,530 13, 298,384 1,990,362 743, 821 5,395 2, 451 Feb. 15,1920... 30, 867,486 12, 519,612 29,165,181 11,958,671 1,697,090 558,926 5,215 2,015 Mar. 15,1920... 33, 568, 251 13,156,260 31,996,561 12,645, 019 1,565,995 509,415 5,695 1,826 Apr. 15,1920. . 38,408,451 14,451.902 36, 207,429 13, 567, 468 2,192, 547 882, 565 6,475 1,889 May 15,1920... 37,176, 038 12, 820,472 34,480, 874 12,339, 093 2,689, 238 479, 638 5,926 1,741 June 15,1920... 36,459,470 12,843,671 34,487,372 12,331, 819 1,965,436 509, 831 6,G62 2,021 July 15,1920... 37, 553, 352 13.618.865 35,127, 057 12,689, 571 2,418,982 927,221 7,313 2,073 Auej. 15, 1920... 37,052, 060 12,303,370 35,045, 843 11,918,337 1,999,664 383,068 6,553 1,965 Sept. 15,1920... 38,541,139 12, 880,327 38,541,102 12,313,878 1,992, 827 564,334 7,210 2 115 Oct. 15, 1920... 40,674,502 13,677,098 38,156, 780 13,247, 060 2,510,644 427,398 7,078 2,640 Nov. 15, 1920... 41,399, 208 13,090,293 38, 402,450 12,673,791 2,989,658 414, 296 7,100 2,206 Dec. 15, 1920... 41,764,941 12,093,079 39,082,305 11,604,936 2,675,292 486,043 7,344 2,100 Total 446,671,185157,499,605419,905, 4841.50,588,02726,687, 735 6, 886,556 77,966 25,022 erage 37,222,598 13,124,967 34,992,124 12,549,002 2, 223,978 573,880 6,497 2,085 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

70 ANNUAL. REPORT FEDERAL RESERVE BOARD. GOLD SETTLEMENT FUND. The volume of transactions through the gold settlement fund has shown a continued and steady increase during the year, occasioned, in part, by the increased use of the check clearing and collection facilities of the Federal Reserve Banks by member banks, and, in part, by the increased volume of inter-Federal Reserve Bank rediscounts. During the past year, as during the previous three years, the gold settlement fund operations have been affected to a large extent by the fiscal operations of the Treasury. Large amounts of transfers have continued to be made on account of transactions incident to the collection and distribution of funds from the sale of Treasury certificates of indebtedness, and the payment and distribution of funds on account of income and excess profits taxes. The only important change during the past year in the method of operation of the gold settlement fund, which has been explained fully in previous reports, was the arrangement made effective March 1, whereby each Federal Reserve Bank and direct settling branch began telegraphing the Board the gross amount collected for the account of each other Federal Reserve Bank and direct settling branch before the final closing of the books for the day. Under the new arrangement the settlement is now effected by the Board the same day, telegrams are dispatched to each bank and direct settling branch so as to reach them in advance of the opening for business the following morning, when the necessary entries are made and their books finally closed for the preceding day. Under the original plan, settlements were made each morning of the credits wired to the Board •as of the previous day. The new plan has resulted in the elimination of inter-Federal Reserve Bank " float" which had previously been carried by some Reserve Banks for other Reserve Banks on account of payments received by the correspondent Federal Reserve Bank one day in advance of pa}^ment through the gold settlement fund. On April 10 the Board authorized payments through the gold settlement fund by Federal Reserve Banks to the Treasurer of the United States for account of member national banks for credit to their 5 per cent redemption fund against national bank notes to be made in any amount, instead of in even dollars which had previously been the rule. This resulted immediately in a substantial increase in the number and volume of such transactions, which have been further increased since the discontinuance of the subtreasuries with which the bulk of such deposits had previously been made. The Los Angeles branch of the Federal Reserve Bank of San Francisco and the Detroit branch of the Federal Reserve Bank of Chicago were authorized, effective January 2 and February 2, re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL, REPORT FEDERAL RESERVE BOARD. 71 spectively, to settle direct with other Federal Reserve Banks and direct settling branches through the gold settlement fund under arrangements described in previous reports, whereby branches of Federal Reserve Banks were authorized to settle direct with other Federal Reserve Banks and direct settling branches through the gold settlement fund in order to facilitate the development of branch bank service and to simplify interoffice accounting. Combined clearings and transfers through the fund during the year aggregated $92,625,305,000, as compared with $73,984,252,000 in 1919, $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 $250,602,968,000 since the operation of the fund was begun on May 20, 1915. A comparison of the amounts of the average weekly settlements shows clearly the growth of the volume of transactions. Average weekly volume of clearings and transfers. 1920 $1, 793, 584, 000 1919 1,422, 774, 000 1918 1, 015, 399, 500 1917 522, 206, 000 1916 106, 422, 000 1915 31,898, 000 For the week October 15-21 the record figure of $2,271,555,831.55 for combined clearings and transfers was established. Extraordinary transactions of that week affecting the gold settlement fund operations include transfers of funds in connection with payments covering the sale and redemption of Treasury certificates on October 15, transfers incident to the payment of interest on approximately $6,000,000,000 Liberty loan issues due October 15, and transfers incident to the redemption of Anglo-French bonds maturing on October 15, 1920. When it is considered that these enormous transfers of gold credits were made almost instantaneously by means of the leased telegraph wire system without the physical movement of a dollar of gold, it will be seen that the gold settlement fund operations have 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 $370,000. 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 Treasury and the commerce of the country of $92,625,000. 45525°—21 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 ANNUAL REPORT FEDERAL RESERVE BOARD. FISCAL AGENCY OPERATIONS. During the past year the duties of the Federal Reserve Banks as fiscal agents of the United States, as described in previous reports, have been enlarged as the result of an act of Congress approved May 29, 1920, which provided for the discontinuance of the nine subtreasuries located in the cities of Boston, New York, Philadelphia, Cincinnati, Baltimore, New Orleans, Chicago, St. Louis, and San Francisco on or before July 1, 1921, and authorized the Secretary of the Treasury to transfer any or all of their duties to the Treasurer of the United States, the mints, assay offices, or Federal Reserve Banks. The intent of the act of August 6, 1846, under which the subtreasuries were established as a part of the independent Treasury system, was that the Government finances should be entirely separated from the banks of the country. Government moneys were no longer deposited in the banks, but in the Treasury or subtreasuries. The necessity for the continuance of the subtreasuries, however, became less obvious as the relations between the Government and the banks of the country became closer. Due to the establishment of the national banking system in 1863 and the then unprecedented fiscal operations of the Treasury incident to the Civil War, the independence of the separate Treasury system began to relax and national banks became depositaries of public moneys and fiscal agents of the Government. This change in the relationship between the Government and the banks developed in the intervening years and culminated with the passage of the Federal Reserve Act in 1913, which authorized the Federal Reserve Banks to act as depositaries and fiscal agents of the United States. With the establishment of the Federal Reserve System and the growth in the fiscal agency operations of the Federal Reserve Banks for the Government, especially during the past four years in connection with the financing of the war, the necessity for the continuance of the subtreasuries has finally disappeared. Under regulations prescribed by the Secretary of the Treasury all of the functions and duties heretofore performed by the subtreasuries, which are enumerated below, will devolve upon the Federal Reserve Banks, with the exception of the last named, which will be performed for the present only by the Treasurer of the United States, the mints, and assay offices, and the issue of gold order certificates on gold deposits, which will be performed for the present only by the Treasurer of the United States. The receipt of gold coin and standard silver dollars for exchange. The receipt of United States notes, Treasury notes, gold and silver certificates, and subsidiary and minor silver coins for redemption. The exchange of various forms and issues of money. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 73 The cancellation and shipment to Washington Ox currency unfit for circulation and the laundering of soiled currency which permits of this process. The receipt from United States depositary banks of their surplus deposits of internal revenue, customs, money order, postal, and other Government funds. The receipt of deposits of postal savings funds, post-office funds, money-order funds, deposits on account of the 5 per cent fund for the redemption of national bank notes, deposits of interest on public deposits, and deposits of funds by Government disbursing officers. The payment of United States coupons. The payment of checks and warrants drawn against the Treasurer of the United States. The receipt of funds for transfer to other points through Federal Reserve Banks or branches located therein. The keeping in custody of reserve and trust funds consisting of gold coin and bullion and standard silver dollars securing gold and silver certificates respectively and held as reserve against United States notes. Under instructions of the Secretary of the Treasury the subtreasuries at Boston, Chicago, New York, and San Francisco were discontinued on October 25, November 3, December 6, and December 20, respectively, and the functions described above (except the last named) will be performed hereafter by the Federal Reserve Banks in those cities. Special separate instructions were issued by the Secretary of the Treasury on August 30, under the provisions of the act of May 29, 1920, authorizing all Federal Reserve Banks immediately to make exchanges, replacements, and redemptions of United States paper currency, which operations had previously been performed by subtreasuries, and up to December 31 the following Federal Reserve Banks and branches have undertaken these functions on dates as specified: Boston Oct. 1 New York Nov. 1 Buffalo branch Nov. 22 Philadelphia Nov. 18 Chicago 1 Nov. 1 Detroit branch Nov. 13 St. Louis Nov. 1 Little Rock Dec. 23 Louisville Dec. 23 Memphis Dec. 23 Minneapolis Dec. 1 Kansas City Nov. 1 San Francisco Dec. 21 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

74 ANNUAL REPORT FEDERAL RESERVE BOARD. Also, the Secretary, on October 19, under the provisions of the act of May 29, 1920, authorized all Federal Reserve Banks to make exchanges and redemptions of United States coin, which functions were previously performed by the subtreasuries, and up to December 31 the following Federal Reserve Banks have undertaken these operations on dates as specified: Boston Oct. 26 Chicago Nov. 4 New York Dec. 7 San Francisco Dec. 21 It is expected that all the subtreasuries will be discontinued shortly after January 1, 1921, and that all Federal Reserve Banks will make replacements, exchanges, and redemptions of United States paper currency and coin. The closing of the subtreasuries and the assumption of their duties and functions by Federal Reserve Banks is being effected without interruption to business and without interference with the financial operations of the Government, and it is believed that the change will result in a considerable advantage to the banks and the general public. In addition to the assumption of the above-described fiscal agency functions the Federal Reserve Banks have continued to act as fiscal agents of the Government during the past year in handling all details incident to the sale, allotment, distribution, and redemption of Treasury certificates of indebtedness among member and nonmember banks in their respective districts, including the collection of funds received from the sale of the certificates and the depositing of funds with depositary banks and withdrawing same as required by the Treasury. Federal Reserve Banks have also made denominational exchanges and exchanges of temporary for permanent Liberty bonds, received collections on account of income and excess profits taxes, redeemed coupons covering interest payments on Government bond, Victory note, and certificate issues, and have handled the sale and exchange of thrift stamps and other Government savings securities. As fiscal agents of the Treasury the Federal Reserve Banks have placed $1,231,837,000 of Treasury loan certificates of indebtedness and $2,619,534,500 of tax certificates during 1920, and have also handled all details incident to the redemption of $4,960,000,000 of Treasury certificates. They have also paid for the Treasury $87,357,000, covering 584,600 interest coupons on outstanding certificates. The following table shows the amount of allotments of Treasury certificates during the calendar year 1920 by issues and Federal Reserve districts: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Allotments of Treasury certificates issued during 1920 in anticipation of tax payments. In anticipation of tax In anticipation of tax payments during 1921. payments during 1920. Federal Reserve Total. Bank. Series Series Series Series Series Series Series Series Series Series T D. T M4. TM. TJ. TM2. TM3. TS. " TM4. T J2. T D. Boston. $52, 782, 500 $17,695,500 $10, 202, 000 $18, 475, 000 $3, 786, 500 $5, 424, 000 $21,329,500 $10,059, 000 $10,455,000 $35,035,000 $185,244,000 New York . .. 324,189, 000 107, 732, 500 59,982, 000 93,629, 500 34,583, 000 60, 233, 500 181, 370, 500 40, 566, 500 93,616, 000 173,291, 000 1,169,193,500 Philadelphia 48, 300, 000 10, 416, 000 5,131, 500 23,200, 000 4,508, 000 6,138, 500 26,936, 000 13, 822, 500 6,681, 500 38,466, 500 183,600, 500 Cleveland 46,119, 500 28,043, 500 17,420, 500 25,132, 500 6,164, 500 9,831, 000 29,205, 000 14,393, 000 28,550, 000 39,700, 000 244,559, 500 Richmond 11, 858, 000 7,093, 500 5,981, 500 7,064, 000 2,195, 000 1,884, 000 9,138, 500 4, 204, 000 3, 8*9, 500 14,044, 500 67,312, 500 Atlanta 14,600, 500 9,276, 000 2,582, 500 4, 498, 000 1,726, 000 1,092, 500 4,537, 500 2,227, 500 2,570, 500 3,757,000 46,868,000 Chicago 77,484, 500 50,110, 500 21,926, 000 27,433, 000 8,177, 000 9,330, 500 24,459, 500 15,234, 000 16,522, 000 37,645, 000 288,322,000 St. Louis 23, 234, 000 9,421, 500 6,806, 000 9, 793, 500 2,300, 000 1,046, 500 9,900, 500 4,621,000 6,153, 000 14,703, 500 87,979, 500 M Ka in n n s e a a s p C o i l t i y s 1 1 5 3 , , 0 5 3 1 6 5 , , 5 0 0 0 0 0 16 8 , , 0 9 0 6 0 9 , , 0 5 0 0 0 0 7 3 , , 2 2 3 5 5 7 , , 5 5 0 0 0 0 1 2 1 , , 2 4 7 1 8 2 , , 5 5 0 0 0 0 2 1 , , 0 2 3 1 2 0 , , 5 5 0 0 0 0 1 1 , , 6 8 8 64 6 , , 5 5 0 0 0 0 3 9 , , 9 3 8 1 6 3 , , 5 50 0 0 0 2 4, , 0 7 5 4 0 4 , , 0 5 0 0 0 0 2 3 , , 6 4 0 9 0 9 , , 0 5 0 0 0 0 1 6 1, , 6 3 2 0 5 3 , , 0 5 0 0 0 0 4 8 8 0 , , 1 4 7 4 9 2, , 0 5 0 0 0 0 Os Dallas 8, 506, 500 14, 868, 500 4, 719, 500 4, 000, 500 495, 000 1,945, 000 2,692, 500 3,008, 500 1, 426, 000 3, 606, 500 45,268, 500 San Francisco 38,400, 000 25,250, 000 16,063,000 15,600, 000 7,100, 000 6,150, 000 19,100, 000 9,322, 000 12, 200, 000 23, 380, 000 172,565, 000 Total 674, 026, 000 304, 877,000 161,307, 500 242, 517, 000 74,278, 000 106,626, 500 341,969, 500 124,252, 500 188,123, 000 401, 557, 500 2, 619, 534,500 Rate of interest 4f per cent. 4| per cent. 4f per cent. 6 per cent. 5f per cent. 5f per cent. 6 per cent. 5f per cent. 5J per cent. 6 per cent- Date issued Jan. 2,1920 Feb. 2,1920 Mar. 15,1920 June 15,1920 July 15,1920 Sept. 15,1920 Sept. 15,1920 Oct. 15,1920 Dec. 15,1920 Dec. 15,1920 Maturity date Dec. 15,1920 Mar. 15,1920 Mar. 15,1921 June 15,1921 Mar. 15,1921 Mar. 15,1921 Sept. 15,1921 Mar. 15,1921 June 15,1921 Dec. 15,1921 W O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Allotments of Treasury loan certificates during 1920. Oi Maturing in 1920. Maturing in 1921. Federal Reserve Bank. I Total. Series E. Series F. Series G. Series H. sries A. Series B. Series C. Series D Boston $11,253,500 $6,615,500 $15,496,500 $8,718,000 $12,470,000 $8, 852,000 $14,042,000 $18,851,000 $96,298,500 New York 104,682,000 33,039,500 94,127,500 37,239,000 81,370,500 55,808,500 57,704,500 83,515,500 547,487,000 Philadelphia... 13,500,000 3,744,000 9,756,000 7,248,000 5,300,000 9,742,000 12,426,000 19,006,500 80,722, 500 Cleveland 13,348,500 5,500,000 7,100,000 10,814,000 14,624,000 7,990,000 15,057,500 31,350,000 105,784,000 Richmond 3,127, 000 1,650, 000 4,693,000 2,965, 500 2,382,000 1,550,000 5,567,000 7,106,500 29,041,000 Atlanta 4,101,000 2,271,000 5,123,000 2,063,000 2,981, 500 1,485,000 4,262, 500 2,363, 500 24,650,500 Chicago 18,359,000 6,313,500 11,086,000 14,080,000 25,132,000 10,044,500 20,250,500 27,264,500 132,530,000 St. Louis 4,277, 500 3,135,500 4,115,500 4,237,000 5,625,000 3,702, 500 6,285,500 9,576,500 40,955,000 Minneapolis 6,265,000 3,979,500 2,413,500 1,341,000 2,214, 500 721, 500 2,093,000 ' 4,875,000 23,903,000 Kansas City... 5,929,000 1,948,000 3,451,000 4,309,000 5,187, 500 5,795,000 6,000,000 7,118,000 39,737,500 Dallas 4,986,000 3,092,000 1,836,000 2,014, 500 2,567,000 1,192, 500 2,544,000 3,492,000 21,724,000 San Francisco. 9,841,000 6,214, 500 11,435,500 7,836,000 16,750,000 7,900,000 11,422,000 17,605,000 89,004,000 Total 199,669,500 77,503,000 170,633, 500 102, 865,000 176,604,000 114,783, 500 157,654,500 232,124, 000 1,231, 837,000 Rate of interest 4f per cent. 5 per cent. 5J per cent. 5J per cent. 5| per cent. 5| per cent. 6 per cent. 5f per cent. Date issued Apr. 1,1920 Apr. 15,1920 Apr. 15,1920 May 17,1920 June 15,1920 July 15,1920 Aug. 16,1920 Nov. 15,1920 Maturity date.. July 1,1920 July 15,1920 Oct. 15,1920 Nov. 15,1920 Jan. 3,1921 Jan. 15,1921 Aug. 16,1921 May 16,1921 % W O > Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 77 During the year, as fiscal agents of the Treasury, the Federal Reserve Banks redeemed 110,366,000 of interest coupons on Liberty and Victory loan bond issues aggregating $623,843,000. With the exception of the first Liberty 3J per cent permanent bonds and the Victory loan 3| and 4| per cent notes, all Government coupon war bonds, amounting to a total of $13,538,515,900 were issued in temporary form, each bond having four coupons attached covering semiannual interest payments for two years. This policy was adopted mainly to get the bonds more quickly into the hands of subscribers, since the work of preparing permanent bonds with all interest coupons attached required a great deal of time; also to avoid waste in effecting subsequent conversions and exchanges. Under regulations issued by the Secretary of the Treasury in December, 1919, the Federal Eeserve Banks were authorized to make exchanges of permanent bonds, when ready, for temporary bonds, and to make special arrangements with any incorporated bank or trust company to receive advance deliveries of permanent bonds upon pledging collateral security with the Federal Reserve Banks. During 1920 the Federal Reserve Banks made exchanges of 27,913,000 of temporary bonds, aggregating $6,745,085,000, and also made 13,009,000 exchanges and conversions of permanent Liberty bonds and Victory notes, aggregating $1,986,297,000. The Federal Reserve Banks also continued the sale of Government savings securities through their savings divisions with the view of encouraging the people of the country to save and invest in Government securities, and of developing a secondary market for the war loan issues of the Government. War savings securities issued during the year 1920 by the Treasury, through the Federal Reserve BanKs, included, as in 1919, thrift stamps, war savings stamps, and Treasury savings certificates. Government savings associations have been organized in various industries and in schools throughout the country to encourage saving. During 1920 the following number and amount of the various classes of war savings securities were sold by Federal Reserve Banks: Amount Number. (maturity value). Treasury savings certificates — 35,683 $7,146,700 War savings certificate stamps.. 599,817 2,999,805 Thrift stamps 1,762,593 440,649 The Federal Reserve Banks, as fiscal agents and depositaries of the Treasury, received during 1920 deposits of over 90 per cent of the $6,435,000,000 paid to the Government on account of income and excess profits taxes and other ordinary receipts. Treasury balances carried with the Federal Reserve Banks have been subject to wide Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 ANNUAL REPORT FEDERAL RESERVE BOARD. fluctuations owing to the seasonal character of the collections made for the Government. The maximum, minimum, and daily average balances of the Government with all Federal Reserve Banks during the past year have been as follows: Government deposits held by Federal Reserve Banks during 1920. [In thousands of dollars.] Maxi- Mini- Daily Maxi- Mini- Daily Month. mum. mum. average. Month. mum. mum. average. January.. 91,195 16,831 46,678 August 58,414 7,479 32,032 February 133,913 9,445 49,749 September 135,178 27,833 57,341 March 108,251 14,323 56,752 October... 60, 560 8,358 25,946 April 42,810 8,777 22,219 November. 53,397 11,896 21,062 May 76,699 18,303 31,257 December. 67,254 17,860 38,661 June 77,477 10,754 34,066 July 29,358 7,921 14,801 Year 135,178 7,479 35,829 On December 31 there was a total of 8,609 special bank depositaries for Government funds which had been designated by the Secretary of the Treasury, through the Federal Reserve Banks. The average daily Government balances wTith these depositaries during 1920 was $191,618,000, and as security for these deposits the Federal Reserve Banks approved and held collateral of an average face value, based on end of month figures, of approximately $508,576,000. CHANGES IN CONDITION OF MEMBER BANKS IN LEADING CITIES DURING 1920. During 1920 the Board continued the publication of weekly figures of principal assets and liabilities of member banks in about 100 of the larger cities. The representative character of these reports is proved by a comparison of certain common items shown in the condition reports on call dates of all member banks and in the consolidated weekly statements on the same or nearest dates of " reporting " member banks. Thus on June 30, 1920, the " reporting" banks are shown to have held over one-half of all Government securities owned by all member banks, about 70 per cent of their total loans and investments (exclusive of fixed investments), about 70 per cent of their total net demand deposits, and about 45 per cent of their time deposits. On the same date " reporting " member banks show about the same amount of net demand deposits as all national banks and larger borrowings from and larger reserve balances with the Federal Reserve Banks. Practically the same proportions are found on earlier call dates. It is evident therefore that the following review of the development during 1920 of the "reporting" member banks may be taken as a fair indication of general banking development in the country during the past year. Owing to the increase in membership in the selected cities the number of reporting banks has grown from 798 on January 2 to 821 on the last Friday of the year Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL, REPORT FEDERAL RESERVE BOARD. 79 and this increase in the number of institutions affects somewhat the comparability of the figures in the appended table, though not enough to invalidate any general conclusions that may be drawn from an analysis of the data. One of the salient features of banking development during the past year is the large and practically continuous reduction in the total of Government war obligations held, also of the loans supported by these obligations carried by the reporting banks. Since January 2, the first Friday in the year, the total holdings of United States bonds other than circulation bonds, Victory notes, and Treasury certificates, as well as paper secured by such obligations, declined from 3,026.6 to 2,033.4 millions, or from 18.1 to 12.1 per cent of the banks' total loans and investments. This considerable decrease is due in the first place to the practically continuous reduction in the amount of Treasury certificates held among1' the investments of reporting member banks. Reduction of the amount of Treasury certificates outstanding, the fixing of higher interest rates on these securities, and changes in discount rates of the Reserve Banks, discussed in another part of the report, are the main factors responsible for the gradual decrease in the holdings of certificates by the reporting banks from 857 millions on January 2 to less than 500 millions by the middle of March. Subsequent issues of tax and loan certificates caused substantial increases in bank holdings, and until the latter part of June the amount held by the reporting banks and largely used by them as collateral for loans at the Federal Reserve Banks was in excess of the low figure shown. On June 25 the total had again declined below the 500-million mark, by September 24 it fell below 400 millions, and by the end of October below 300 millions. About the close of the year total certificate holdings are shown as 271.6 millions, a decline of 585.8 millions since the beginning of the year. As compared with the large reductions in certificates, the amount of United States bonds held by the reporting institutions shows a small increase from 636.4 to 643.9 millions. These totals are exclusive of the amounts of circulation bonds (held largely on deposit with the Treasury to secure national-bank note circulation) which continued practically constant at about 269 millions. Victory note holdings during the first three months of the year show a decline from 238 to slightly below 200 millions, the decrease representing apparenty to a large extent the amount of securities acquired by customers on the part-payment plan. Since then but little change in the holdings is seen, the amount reported about the close of the year, 209.1 millions, being 18.9 millions larger than the low figure for the year shown on October 8. Loans secured by Government obligations—by far the larger part secured by Liberty bonds and Victory Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

80 AisnsruAL REPORT FEDERAL RESERVE BOARD. notes—which stood at 1,294.4 millions at the beginning of the year declined steadily to about 1 billion about the middle of the year. A further reduction, though not so large,, took place since the end of June, the total at the close of the year, 908.9 millions, showing a decline of 385.5 millions for the year. In connection with the shrinkage in the volume of stock-exchange operations in the New York market, loans secured by stocks and bonds show a practically continuous decline from 3,390.6 millions to less than 3 billions about the middle of August. Since then a slight rise in this item is noted, especially during October, when street loans carried by the fiscal agents of the British and French Governments were called preparatory to the redemption on October 15 of the outstanding bonds of the loan of 1915, and reporting member banks in New York and Boston assumed the greater part of these loans. At the close of the year these loans stood at 3,175.9 millions, or 177.6 millions above the low point reported about the middle of August. All other loans and investments, composed largely of commercial loans and discounts, show a practically unchecked upward trend until October 8, when the peak for the year, 11,773.6 millions, was reached, an increase of 1,764.4 millions since the beginning of the year. Since then the banks report net liquidation under this head of over 500 millions, the end-of-year total of 11,274.3 millions differing but little from the total reported six months earlier. Total loans and investments of the reporting banks follow a practically parallel course, reaching a high of 17,284 millions on October 15, a total almost 600 millions in excess of the corresponding January 2 figure. Since then considerable liquidation may be noted, reducing the end-of-year total to nearly the January level. While but little change is seen in the total volume of the banks' earning assets, there has been an almost steady growth of other loans and investments at the expense of the less liquid investments in Government war securities and of loans secured by such obligations. Tims at the opening of the year about 60 per cent of the taial loans and investments consisted of "other loans and investments," i. e., largely commercial loans and discounts, and slightly over 18 per cent of United States war securities and loans secured by such obligations, while at the close of the year the respective proportions were about 67, and slightly over 12 per cent. The figures of total loans and investments uniformly include amounts rediscounted with the Federal Reserve Banks. A comparison of these figures with the amounts of total borrowings by the reporting banks at the Federal Reserve Banks indicates therefore the approximate extent to which the loan burden of the member banks was shifted to the Reserve Banks. In January the " ratio of accommodation " stood at 11.2 per cent. By the end of February, in consequence of largely increased borrowings from the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 81 Reserve Banks, the ratio had gone up to 12.8 per cent. On November 5, when the peak of borrowings from the Reserve Banks is shown, viz, 2,278.4 millions, the ratio of accommodation stood at 13.4 per cent, while on December 31, notwithstanding the substantially smaller loans and investments, the ratio works out at slightly above 12.5 per cent. On the whole the member banks, during the more recent months, have come to lean more heavily upon the Reserve Banks, notwithstanding the substantial liquidation of their own loans to customers and of their investments in Government and corporate securities. In keeping with the changes in their own loans and investments the member banks show a gradual reduction in the amount of paper secured by Government war obligations, including Treasury certificates, so-called war paper, pledged with the Federal Reserve Banks and a more than corresponding increase in borrowings on commercial paper proper. On January 2 out of a total of 1,870.5 millions of loans from the Federal Reserve Banks, loans secured by Government war obligations constituted nearly 65 per cent, while at the close of the year, out of total loans at the Federal Reserve Banks of 2,098.1 millions, the proportion of " war paper " was about 42 per cent. Government deposits at the reporting banks show wide fluctuations, in connection with the fiscal operations of the Treasury, mainly the flotation of the several series of loan and tax certificates, the high points after the early part of the year coinciding with or following the dates of the quarterly tax installments and the payment by credit to Government account for Treasury certificates allotted to the banks. Other demand deposits (net), largely because of the substantial withdrawals of balances by the country banks from their central reserve and reserve city correspondents, show a decided downward movement, especially during the latter part of the year. On December 31 the demand deposits of reporting banks aggregated 10,941.8 millions, or 653.7 millions less than on the first Friday of the year. Time deposits, on the other hand, continued their upward course with but few and unimportant recessions, reaching a high point of 2,852.3 millions at the close of the year, or about 519 millions higher than on the first Friday in January. Reserve balances of the reporting banks with the Federal Reserve Banks, on the whole, followed a parallel course with demand deposits, declining during the year from 1,444.3 to 1,357.6 millions. Cash in vault after the first two weeks in January continued below 400 millions, or at less than 4 per cent of the net demand deposits, fluctuating within a maximum of 394 millions on July 9 and a minimum of 347.2 millions on the first Friday in February. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Principal resources and liabilities of member banks in leading cities, by iveehs, during 1920. 00 [Amounts in thousands of dollars.] to Loans1 and investments, exclusive of U. S. Accommodation at Federal United States securities. securities. Deposits. Reserve Banks. Num- Date b p a i b r o n n o e e r k g f - r t s - . Total. Bonds. n V o to t i e c ry - s. e C d d o c e f e n a r t b e t i e i n s t f s - s - i- . Total. s U o L S e b w n c t o b l a u i i a y a t t g r r n e e e a s s d d - b s U y b L e o t a o n c h o t s n h u n i t a a t d o r e d n n e e r c s d s d ks ot A he ll r. b R R F B a w e e e l a s s d a i e e n n e th r r k c r v v a e . e e l s v C a i a u n s l h t. o d n r i p s e e u N m s w c e t o e e a h r m t v d n ic e . d - h Time. m G e e r o n n v - t - . Total. s U o P S e b w c n t a b l a u i p i a y t t g r e r e e e a r s d d - s a s e o P n e w c c t d a u h u i p s r e u r e e e e r n r - d d - . tions. States tions. bonds. Jan. 2... 798 2,000,983 905,243 238,385 857,355 14,694,235 1,294,409 3,390,046 10,009,180 1,444,285 431,436 11,595,451 2,333,783 629,201 1,870,500 1,209,877 660,623 9... 802 2,036,353 905,030 236,674 894,649 14,692,944 1,274,424 3,378,58b 10,039,934 1,406,535 410,707 11,535,788 2,409,728 633,745 1,729,312 1,088,715 640,597 16... 803 1,934,316 892,074 226,391 815,851 14,783,939 1,274,507 3,370,053 10,139,379 1,473,974 377,307 11,726,214 2,466,279 423,121 1,757,376 1,095,489 661,887 23... 804 1,875,834 882,180 222,167 771,487 14,798,570 1,267,850 3,352,829 10,177,891 1,424,790 372,811 11,539,933 2,477,547 343,710 1,824,069 1,139,552 684,517 30... 804 1,844,650 869,426 216,731 758,493 14,776,928 1,226,679 3,325,222 10,225,027 1,406,496 357,509 11,481,050 2,471,569 308,823 1,834,180 1,197,366 636,814 Feb. 6... 804 1,810,590 866,878 212,644 731,068 14,797,975 1,196,200 3,301,979 10,299,796 1,417,159 347,218 11,482,807 2,494,912 205,168 1,894,745 1,225,998 668,747 13... 804 1,771,705 863,416 212,394 695,895 14,882,689 1,178,844 3,232,398 10,471,447 1,398,371 383,279 11,557,091 2,500,862 156,814 1,982,914 1,242,491 740,423 20... 806 1,764,078 866,997 211,064 686,017 14,810,721 1,163,364 3,178,040 10,469,317 1,399,334 369,959 11,423,157 2,514,725 59,387 2,057,396 1,301,329 756,067 27.. . 807 1,747,161 865,507 208,823 672,831 14,924,151 1,167,675 3,185,281 10,571,195 1,408,792 370,431 11,463,252 2,524,393 42,097 2,142,857 1,341,450 801,407 Mar. 5... 808 1,711,610 864,475 205,925 641,210 15,029,342 1,188,602 3,174,210 10,666,530 1,404,038 373,899 11,553,616 2,557,180 39,078 2,094,129 1,284,141 809,988 12... 809 1,695,562 860,094 204,458 631,010 15,214,634 1,166,415 3,184,987 10,863,232 1,436,601 368,749 11,716,721 2,565,076 39,175 2,106,254 1,277,996 828,258 19... 809 1,560,431 861,481 201,612 497,338 15,220,994 1,162,465 3,175,231 10,883,298 1,390,213 368,911 11,635,029 2,574,140 104,451 1,899,093 1,132,294 766,799 26... 811 1,548,036 860,181 200,212 487,643 15,271,234 1,160,141 3,193,212 10,917,881 1,413,918 359,854 11,495,549 2,584,959 54,176 2,114,273 1,202,123 912,150 Apr. 2.. . 811 1,605,890 861,096 203,988 540,806 15,309,103 1,154,228 3,158,943 10,995,932 1,436,756 360,002 11,600,788 2,586,610 120,939 2,048,219 1,144,808 903,411 9... 812 1,613,361 860,258 201,368 551,735 15,259,184 1,137,188 3,142,455 10,979,541 1,397,590 374,064 11,559,204 2,598,756 125,188 2,008,874 1,164,706 844,168 16... 811 1,748,357 863,124 203,325 681,908 15,295,679 1,129,259 3,179,452 10,986,968 1,437,118 370,467 11,683,551 2,608,587 189,849 2,053,404 1,190,299 863,105 23... 811 1,693,529 855,178 207,879 630,472 15,217,587 1,100,814 3,147,591 10,969.182 1,413,648 367,831 11,424,857 2,621,640 170,822 2,100,532 1,194,560 905,972 30... 812 1,680,646 868,280 204,003 608,363 15,249,689 1,089,871 3,170,316 10,989,502 1,415,145 355,372.11,463,745 2,619,027 150,136 2,136,347 1,206,765 929,582 May il::: 810 1,673,828 874,924 203,247 595,657 15,219,965 1,077,164 3,139,528 11,003,273 1,373,730 373,651 11,390,817 2,637,736 144,761 2,091,558 1,177,480 914,078 814 1,675,457 873,212 203,932 598,313 15,308,359 1,090,554 3,104,178 11,113,627 1,423,402 371,216 11,563,867 2,655,286 59,200 2,127,673 1,235,868 891,805 21... 814 1,712,304 873,932 203,102 635,270 15,226,949 1,056,016 3,123,514 11,047,419 1,394,550 368,332 11,506,283 2,643,342 115,113 2,059,213 1,166,875 892,338 28... 814 1,684,364 871,723 203,455 609,186 15,261,748 1,061,590 3,115,454 11,084,704 1,415,397 362,749 11,561,381 2,645,705 75,599 2,060,138 1,159,436 900,702 June 4... 812 1,680,154 873,414 203,299 603,441 15,246,036 1,043,804 3,111,038 11,091,194 1,419,343 384,894 11,536,371 2,667,977 52,582 2,091,833 1,149,077 942,756 11... 813 1,658,312 874,136 202,987 581,189 15,267,965 1,039,981 3.095,502 11,132,482 1,428.233 373,541 11,597,508 2,670,708 52,021 2,053,653 1,155,702 897,951 18... 814 1,587,992 876,867 200,472 510,653 15,332,911 1,025,945 3,113,141 11,193,825 1.368,251 366,091 11,514,285 2,684.497 267,613 1,833,270 956,335 876,935 25... 814 1,560,929 879.115 198,690 483,124 15,371,519 1,026,011 3,107,025 11,238,483 1^393,709 358,060 11,347,041 2,691,880 262,861 1,945,977 996,347 949.630 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 2... 8141,497,540878,711 198,875419,954 15,388,414 1,022,917 3,119,46611,246,0311,445,713358,252 11,487.857 2,700,371 107,790 2,056,430 1,020,463 1,035,967 9... 8141,474,146878,733 196,462398,951 15,387,359: 1,011.771 3,079,79311.295,7951,402,700394,048 11,462', 9652,698,969 44,104 2,051,187 1,010,632 1,040,555 16... 8141,544,080876,344 194,931472.805 15,349,0701 999,799 3,046,7P411,302,4771,421,906367,853 11,553,677 2,698,479 121,561 1,989,863 984.077 1,005,786 23... 8141,530,183873,818 194,266462,099 15,346,562! 981,184 3,059,79811,305,5801,388,021360,887 11,426,887 2,715,438 142,276 1,953,430 971,935 981,495 30... 8141,503,039875,398 193,683433,958 15,354, 477 980,942 3,060;31911,313,2161,368,659354,749 11,401,052 2,705,852 115,287 1,973,034 965,675 1,007,359 Aug. 6... 8151468361882,539 184,597401,225 15,339,290 973,159 3,Oil,06311,355,0681,374,806360,179 11,313,530 2,721,624 74,14fi 2.021,641 1,002,815 1,018,826 13... 8181460488875,610 191,234393,644 15,367,790 964,008 2,998,31311,405,4691,392,231354.506 11,382,363 2, 727,482 66,' 7332,050,014 1,018,138 1,031,876 20... 8181508559875.297 189,809443,453 15,373,339 959,409 3,006,44511,407,4851,362,501352,058 11,246,938 2,723,828 145,274 2', 086 4961,024,585 1,061,911 27... 8201501482875,385 196,326429,, 77115,428,936 966,288 3,03714411,425,5041,372,075 357,872 11,252,428 2,745,231 123,878 2,128,399 1,041,055 1,087,344 Sept. 3... 8191487839872,846 192,943422,050 15,440,132 957,380 3044,84611,437,9061,394,957349,505 11,242,044 2,767,782 61,755 2,201,943 1,048,817 1,153,126 10... 818 418525878,859 189282350,384 15,504,996 958,861 3048,13311,498,0021,389,478375,094 11,339,551 2,771,208 30,054 2,142,252 1,025.652 1,116,600 17... 8181485989878,958 191,171415,860 15,571,385 955,843 3,040,07311,575,469 1,390,096369,711 11,381,204 2,780,662 331,376 1,972,160 937,428 1,034,732 24... 8181447757872,865 191,472383,420 15,692,489 950,324 305594211,6862231,361,800358,383 11,160,537 2,786,811 315,364 2,150,910 949,265 1,201,645 Oct. 1. . . 8201388,932 872,459 190.769325,704 15,755,454 949,015 3100,173 11,7062661,343,551351,157 11,230,074 2,793,861 275,037 2,165,449 914,309 1,251,140 8... 8221386,963 878,874 190,240317,849 15,801,641 936,934 309115111,7735561,384,680376,470 11,212,230 2,796,176 247,136 2,249,962 946,067 1,303,895 g. 15... 8221429,897 876,726 191418361,753 15,854,099 923,722 3162,257 11,7681201,422,082381,114 11,472,924 2,808,303 188,401 2,248,970 927,824 1,321,146 22... 8231,385,238 877,872 193,494 313,872 15,717,622 914,407 3,10590311,6973121,333,215377,491 11,240,588 2,814,559 151,849 2,203,696 929,567 1,274,129 29... 8231,364,616 876,237 193386294,993 15,652,800 911,548 314197611,5992761,365,222366,997 11,172,001 2,805,247 80,731 2,244,262 929,344 1,314,918 nO Nov. 5... 8231358,134 879,284 193,627 285,223 15,577,202 911,168 3,087,514 11,578,520 1,335,235387,411 11,094,304 2,816,595 45,412 2,278,435 941,978 1,336,457 12... 8251353310880,039 195,217 278,054 15,478,362 908,702 304901811,5206421,369,928383,538 11,121,945 2,809,940 29,525 2,228,275 905,353 1,322,922 19... 8241,425,347 884,449 195496345,402 15,368,227 893,912 3044Oil11,4303041,343951378,224 10,992,273 2,786,045 173,216 2,119,254 883,838 1,235,416 26... 8241,391,420 884,160 194081313,179 15,340,592 905,677 305478911,3801261,286,946388,105 10,892,122 2,811,123 87,799 2,174,026 913,910 1,260,116 Dec. 3... 8231,355,458 883,034 196279276,145 15,274,727 900,878 305008211,3237671,332,081375,887 10,837,478 2,822,240 17,503 2,209,839 876,929 1,332,910 10. .. 8231,337,615 886,469 197569253,577 15,243,930 896,565 306426611,2830991,330 267376,196 10,865,582 2,809,474 17,298 2,144,165 882,815 1,261,350 17... 8241,462,844 891,505 197853373,486 15,340,382 901,217 310360011,3355651,297,231381,191 10,814,454 2,790,197 399,968 2,031,979 887,769 1,144,210 24. .. 8241,416,388 903,474 202093310,821 15,275,764 888,648 312657211,2605441,333 808356,110 10,653,558 2,788,649 344,013 2,174,323 899,004 1,275,319 31... 8211,391,368 910,690 209079271,599 15,359,120 908,908 317590611,2743061,357,669354;535 10,941,847 2,852,257 262,264 2,098,053 878,260 1,219,793 1 Including rediscounts with Federal Reserve Banks. 00 CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 ANNUAL KEPORT FEDERAL RESERVE BOARD. STATE BANK MEMBERSHIP. On December 31, 1920, there were 1,487 State bank and trust company members of the Federal Eeserve System, with aggregate capi< tal and surplus of $1,033,894,000 and aggregate resources of $10,« 370,253,000, as compared with 1,181 State bank and trust company members on December 31, 1919, with aggregate capital and surplus of $891,201,000 and aggregate resources of $9,913,707,000. In the following table are shown, by Federal Eeserve districts, the number of State bank and trust company members, their capital and surplus, and total resources on December 31, 1919, and on December 31, 1920: [Amounts in thousands of dollars.] Dec. 31, 1919. Dec. 31,1920.1 Federal Reserve district. N b u e m r. - s C u a a rp n p d l i u ta s l . res T o o u t r a c l es. N b u e m r. - s C u a a rp p n l d i u ta s l . res T o o u t r a c l es. Bos ton 36 64,385 719,918 39 72,575 779,598 New York 122 320,123 t, 283, 636 134 357,276 4,150,695 Philadelphia.. 38 70, 455 370, 462 46 72,367 388,931 Cleveland 97 101, 871 803, 439 110 128,832 1,042,935 Richmond 46 19,285 166, 007 56 23,761 169, 404 Atlanta 64 35,553 389, 854 84 40,860 360,730 Chicago 326 157, 046 L, 751, 177 358 176,231 1,850,931 St. Louis 68 44,354 409, 086 91 48,359 402,598 Minneapolis... 86 10, 455 107, 139 121 13,271 128,287 Kansas City... 47 8,353 119, 953 63 12,057 128,337 Dallas 114 10,391 97,103 187 20,054 142,135 San Francisco. 137 48,930 695, 933 68,251 825,672 Total 1,181 891,201 9,913,707 1,487 1,033,894 10,370,253 1 Figures for Dec. 31, 1920, partly estimated. The subjoined tabular statement shows a comparison between the number, capital and surplus, and total resources of member banks; member banks, and nonmember banks eligible for membership; and all banks in the United States, exclusive of mutual savings and private banks. Figures are as of June 30, 1920, the latest date on which figures are available for comparative purposes. [Amounts in thousands of dollars.] Capital and surplus. Aggregate resources. Per cent Number. 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 8,025 85.4 2,209,277 69.1 22,187,459 68.9 State banks and trust companies 1,374 14.6 988,196 30.9 10,006,842 31.1 Total 9,399 100.0 3,197,473 100.0 32,194,301 100.0 2. Member banks, and nonmember banks eligible for membership: Member banks 9,399 51.3 3,197,473 73.9 32,194,301 77.5 Eligible nonmember banks 8,910 48.7 1,128,554 26.1 9,342,860 22.5 Total . 18,309 100.0 4,326,027 100.0 41,537,161 100.0 3. All banks in the United States, exclusive of mutual savings and private banks: Member banks 9,399 32.7 3,197,473 67.3 32,194,301 69.9 Nonmember banks 19,316 67.3 1,553,313 32.7 13,829,370 30.0 Total. . . 28,715 100.0 4,750,786 100.0 46,023,671 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 85 The number of State banks and trust companies, members, and nonmembers eligible for membership, classified according to (a) institutions with combined capital and surplus of $1,000,000 and over, and (h) institutions with combined capital and surplus of less than $1,000,000, as of June 30,1920, are shown in the following statements: [Amounts in thousands of dollars.! (a) 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 r p p n i l d t u a s l . s C u a a r p p n l d i u ta s l . res T o o u t r a c l es. Boston 57,300 613,132 19,800 162,069 New York.... 333,208 i, 854,147 72,432 582,269 Philadelphia.. 62,048 309,805 63,396 287,685 Cleveland 88,409 656,880 41,740 259,269 Richmond 15,645 109,711 39,450 189,043 Atlanta 29.650 277,907 2,050 41,051 Chicago 128.550 ., 306,960 23,235 171,416 St. Louis 33,350 261,808 8,300 57,433 Minneapolis... 4,400 16,360 Kansas City... 3,000 57,985 1,250 1,463 Dallas 2,100 10; 203 1,140 9,339 San Francisco. 40,966 585,809 24,243 278,467 Total: June 30,1920. 182 794,226 8,044,347 134 301,436 2,055,864 June 30, 1919. 634,436 6,827,182 136 318,548 2,271,880 (b) BANKS AND TRUST COMPANIES WITH COMBINED CAPITAL AND SURPLUS OF LESS THAN $1,000,000. Boston 22 11,650 130,258 169 39,084 405,065 New York 79 20,416 262,420 244 48,033 510,395 Philadelphia 28 9,049 70,048 385 79,864 606,484 Cleveland 91 19,993 194,507 578 77,484 646,210 Richmond 43 6,714 53,974 625 65,255 515,634 Atlanta 59 10,276 83,699 734 54,213 453,118 Chicago 308 46,544 536,622 2,101 171,888 1,710,200 St. Louis. 74 14,291 135,098 1,017 71,704 552,169 Minneapolis 107 12,112 117,383 767 45,732 480,209 Kansas City 54 6,533 65,029 1,047 67,535 550,230 Dallas 158 14,330 105,330 487 34,539 227,720 San Francisco 169 22,062 208,127 622 71,787 629,562 Total: June 30,1920 1,192 193,970 1,962,495 8,776 827,118 7,286,996 June 30, 1919 900 158,475 1,625,400 8,024 755,817 6,275,743 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 ANNUAL KEPORT FEDERAL RESERVE BOARD. The total number, capital and surplus, and resources of State banks and trust companies, both members, and nonmember institutions reported as eligible for membership on the basis of capital requirements; also ratios of number, capital and surplus, and resources of State bank and trust company members to total number, capital and surplus, and resources of all State banks and trust companies other than those not eligible for membership on the basis of capital requirements, as of June 30,1920, are set forth in the following table: [Amounts in thousands of dollars.] Number of banks. Capita land surplus. Total resources. Federal Reserve M 1 e . mber, 2. 3. Mem 4. ber, 5. 6. Mem 7. ber, 8. 9. district. a m e n l d e ig m n ib b o l e n e r - M be e r m s. - (2 c P - e 9 e n - r 1 t ). a m e n l e d ig m i n b b o l e n e r - M ba em nk b s e . r (5 c P e * e n 4 r t ). a m e n l e d ig m i n b b o l e n e r - M ba em nk b s e . r (S c P - e v e n - r 7 t ). banks. banks. banks. Boston. 215 36 16.7 127,834 68,950 53.9 1,310,524 743,390 56.7 New York 400 132 33.0 474,089 353,624 74.6 5,209,231 4,116,567 79.0 Philadelphia 454 40 8.8 214,357 71,097 33.2 1,274,022 379,853 29.8 Cleveland 706 109 15.4 227,626 108,402 47.6 1,756,866 851,387 48.5 Richmond 695 53 7.6 127,064 22,359 17.6 868,362 163,685 18.9 Atlanta 808 72 8.9 96,189 39,926 41.5 855,775 361,606 42.3 Chicago 2,450 339 13.8 370,217 175,094 47.3 3,725,198 1,843,582 49.5 St. Louis 1,106 86 7.8 127,645 47,641 37.3 1,006,508 396,906 39.4 Minneapolis 877 107 12.2 62,244 12,112 19.5 613,952 117,383 19.1 Kansas City 1,104 56 5.1 78,318 9,533 12.2 674,707 123,014 18.2 Dallas 648 160 24.7 52,109 16,430 31.5 352,592 115,533 32.8 San Francisco 821 184 22.4 159,058 63,028 39.1 1,701,965 793,936 46.6 Total: June 30,19. 10,284 1,374 13.4 2,116,750 988,196 46.7 19,349,702 10,006,842 51.7 June 30,19. 9,202 1,042 11.3 1,867,276 792,911 42.4 17,000,205 8,452,582 49.7 In the table which follows are shown the total resources as of June 30, 1920, and June 30, 1919, of (1) all member banks, both National and State institutions; (2) nonmember banks and trust companies reported as eligible for membership in the Federal Reserve System; (3) all banks in the United States, exclusive of mutual savings and private banks, and (4) the ratio of total resources of all member banks to total resources of nonmember banks reported eligible for membership, and the ratio of total resources of all member banks to total resources of all banks in the United States, exclusive of mutual savings and private banks. It will be noted that the resources of State banks and trust companies which are members of the system are greater by $664,000,000 than those of nonmember banks reported as eligible for membership, a reversal of the situation on June 30, 1919, when the resources of State bank and trust company members were $95,000,000 less than those of nonmember banks reported as eligible for membership. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 87 Total resources. June 30, 1920. June 30, 1919. (1) Member banks: National . . . . ... $22,187,459,000 $20,791,147,000 State banks and trust companies 10,006,842,000 8,452,582,000 Total 32,194,301,000 29,243,729,000 (2) Nonmember State banks and trust companies reported as eligible for membership in the Federal Reserve System 9,342,860,000 8,547,623,000 (3) All banks in the United States, exclusive of mutual savings and private banks: National . . 22,187 459,000 20,791,147,000 State banks and trust companies 23,836,212,000 20,942,856,000 Total 46,023,671,000 41,734,003,000 (4) Ratio of total resources of all member banks to total resources of nonmember banks reported eligible for membership (per cent)... 344.6 342.1 Ratio of total resources of member banks to total resources of all banks in the United States, exclusive of mutual savings and private banks (per cent) 70.0 70.1 EARNINGS AND OPERATING EXPENSES OF FEDERAL RESERVE BANKS. In meeting the credit demands of their customers during the year member banks have found it necessary to ask for an increasing amount of rediscount accommodation at the Federal Reserve Banks (taking proceeds to a large extent in the form of Federal Reserve notes), and this fact, together with the higher discount rates approved by the Federal Reserve Board during the early part of the year as a part of its protective credit policy, has resulted in increasing the gross earnings of all Federal Reserve Banks combined from 102 millions in 1919 to 181 millions in 1920. Over 82 per cent of these earnings came from paper discounted for member banks, the average daily holdings of which aggregated 2,530 millions during 1920, as compared with 1,908 millions during 1919. The Board takes this opportunity again to point out that the Federal Reserve Banks are not operated primarily for profit and that the large earnings are the result of abnormal demands on their credit resources growing out of postwar conditions. Now that prices have declined from the high level reached in 1919, it may be expected that credit requirements, both for reserve balances at the Federal Reserve Banks and for Federal Reserve notes, will, after conditions have become stabilized, be less heavy. Operating expenses of the Federal Reserve Banks have continued to advance during the year, chiefly because of the increased volume of business transacted, especially by the discount and clearing and collection departments. The number of bills discounted increased from 587,000 in 1919 to over 1,000,000 in 1920, and the number of checks collected for the account of member and clearing nonmember banks from 305,159,000 in 1919 to 446,671,000 in 1920. 45525°—21 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 ANNUAL, REPORT FEDERAL RESERVE BOARD. Besides adding to the number of their officers and employees in order to transact the increased volume of business, the banks have enlarged materially the staffs of their examination departments in order to enable them to participate in the examinations made by State authorities of State bank and trust company members, and to make independent examinations where necessary,, The following table shows the number of officers and employees of each Federal Reserve Bank at the close of the years 1919 and 1920: Number of omcers and employees. Federal Reserve Bank. Dec. 31, Dec. 31, 1919. 1920. Boston 755 776 New York 2,962 2 OS 6 Philadelphia 647 842 Cleveland 626 969 Richmond 401 667 Atlanta 386 446 Chicago . 1,199 1 731 St Louis . 541 851 Minneapolis 287 459 Kansas City 583 863 Dallas 505 613 San Francisco. 567 1 132 Total 9,459 | 12285 Because of the trend of living expenses, and in order to meet the competition of banks and corporations, moderate increases in salaries have been approved for both officers and employees of the Reserve Banks. In no case, however, are the salaries paid bank officers as high as those paid officers of corresponding rank in the larger commercial banks. Average salaries paid by each Federal Reserve Bank to officers and employees as of December 31, 1920, are as follows: Average Average Federal Reserve Bank. salary of salary of omcers. employees. Boston $9,269 $1,271 New York 11,275 1,460 Philadelphia... 10,182 1,259 Cleveland 7,738 1,360 Richmond 7,014 1,189 Atlanta 5,426 1,149 Chicago 6,304 1,310 St. Louis 6,486 1,209 Minneapolis 7,240 1,262 Kansas City 5,158 1,209 Dallas 5,895 1,271 San Francisco. 5,581 1,366 As the result of the large increase in the net earnings available for dividends, surplus, and franchise taxes, all but three of the Federal Reserve Banks have accumulated surplus accounts in excess of 100 per cent of their subscribed capital stock as authorized by the amendment of March 3, 1919, to section 7 of the Federal Reserve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 89 Act, which provides that after dividend requirements have been fully met the net earnings of each bank shall be paid to the United States as a franchise tax, except that the whole of such net earnings shall be paid into a surplus fund until it shall amount to 100 per cent of the subscribed capital stock of such bank and that thereafter 10 per cent of such earnings shall be paid into the surplus. In the table given below are shown the normal surplus, the supersurplus, or the surplus created by carrying to surplus account 10 per cent of the net earnings available after the normal surplus equals 100 per cent of subscribed capital, and the percentage relationship between the total surplus and the subscribed capital stock of each Federal Reserve Bank on January 1, 1921. [Amounts in thousands of dollars.] Surplus, Jan. 1, 1921. Ratio of Subscribed surplus to Federal Reserve Bank. capital, subscribed Normal Super- Jan. 1,1921. capital, surplus. surplus. Total. Jan. 1,1921. Per cent. Boston 15,436 275 15,711 15,436 101.8 New York 52,745 i 3,669 56,414 52,745 107.0 Philadelphia... 16,970 40 17,010 16,970 100.2 Cleveland 20,305 20,305 21,406 94.9 Richmond 10,538 23 10,561 10,538 100.2 Atlanta 8,106 237 8,343 8,106 102.9 Chicago 2.7,825 1,155 28,980 27,825 104.2 St. Louis 8,346 8,346 8.730 95.6 Minneapolis... 6,922 58 6,980 6'. 922 100.8 Kansas City*... 8,910 249 9,159 8,910 102.8 Dallas 6,033 6,033 8,197 73.6 San Francisco. 13,853 341 14,194 13,853 102.5 Total. 195,989 6,047 202,036 199,638 101.2 i After deduction of 11,000,000 charged to supersurplus account and credited to general reserve account after closing of books on Dec. 31, 1920. The Board has ruled that any contingent reserves which a Federal Reserve Bank may desire to set up must be deducted from its supersurplus and not from current earnings. Besides increasing their surplus accounts to over 100 per cent of their subscribed capital, nine of the Federal Reserve Banks paid franchise taxes to the United States aggregating $60,725,000. At the end of 1919 the available net earnings of the New York Federal Reserve Bank were sufficient to enable it to increase its surplus to $45,082,000, or $300,000 in excess of 100 per cent of its subscribed capital stock, and normally the bank would have carried only 10 per cent of its net earnings at the close of 1920 to surplus. Owing, however, to the increase in the capital stock and surplus of existing member banks and to the admission to membership of eligible State banks and trust companies, the subscribed capital stock of the New York bank shows an increase of $7,964,000 for the year 1920. Therefore, the bank was authorized to transfer an equivalent amount to its normal surplus account out of its net earn- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

90 ANNUAL, REPORT FEDERAL, RESERVE BOARD. ings for 1920. Of the balance of its net earnings 10 per cent was transferred to supersurplus account and 90 per cent paid to the United States Government as a franchise tax. The table below shows the gross and net earnings of each Federal Eeserve Bank for the year 1920, the dividends paid, the amounts transferred to surplus account, and the amounts paid to the United States Government as franchise taxes. [Amounts in thousands of dollars.] Net earnings avail- Federal Reserve Bank. ea G rn r i o n s g s s. e C ar u n n r e i r n e t g n s t . d c e u b N n r i r e e t e s t t n t t o s a d u b d e r l i n p e v d l i u f - s o s , r , Di p v a id y e - nd f a s e T c u r c r r r e a o p d n u lu s n t - s t o . F t t G a o ra x o n I v T p c e h . a r n i i S s d - . e earnings. and fran- ment. chise tax. Boston 12,273 10,235 138 10.273 447 7,352 2,474 New York.... 60,525 53,526 398 53,128 1,477 12,333 39,318 Philadelphia.. 11,849 9,671 606 9,005 497 8,204 364 Cleveland 14,459 11,988 168 11,820 604 11,216 Richmond.... 6,903 5 387 149 5,238 293 4,740 205 Atlanta 7,476 6,091 81 6,010 225 3,648 2,137 Chicago 30,303 25,850 *26 25,876 793 14j689 10,394 St. Louis 7,180 5,256 380 4,876 254 4,622 Minneapolis.. 5,307 4,292 161 4,131 196 3,411 524 Kansas City.. 7,410 5,552 11 5,541 258 3,043 2,240 Dallas 4,905 3.355 127 3,228 225 3,003 San Francisco 12,707 10,204 95 10,109 385 6,655 3,069 181,297 151,407 2,112 149,295 5,654 82,916 60,725 Total... i Credit. CHANGES IN RATES OF EARNINGS DURING 19 20. During the year the rates of earnings on discounted bills, which account for over 82 per cent of the total annual gross earnings of the Federal Reserve Banks, show a steady advance from 4.71 in January to 6.42 in December. Upward revision of discount rates on all classes of paper in January and the further advances by four of the Federal Reserve Banks of the rates on commercial paper in June, together with the adoption during April and May of graduated or progressive rates by four Federal Reserve Banks, account for the more striking increases in the rates of earnings on discounted bills shown during those months. Another factor which had a noticeable effect throughout the year is the gradually decreasing proportion of advances against Treasury certificates, on which as a rule the banks charge lower rates, due both to a steady decrease in the actual amount of such paper and to the more than proportionate increase in the volume of paper rediscounted at the higher ordinary rates. The operation of this factor is more apparent during the second half of the year, during which the rates on all other classes of discounts continued without change, and account chiefly for the gradual rise in the rate of earnings on all discounts from 6.12 per cent in July to 6.42 in December. For the entire year the average rate of earnings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 91 from discounted paper is given as 5.88 per cent, compared with 4.23 per cent for the calendar year 1919 and 4.24 per cent for the war year of 1918. Average rates of earnings on acceptances bought in open market during the first half of the year increased in about the same proportion as the rates on discounted paper. Since July the average monthly rates on acceptances have shown a slight downward tendency, apparently in connection with the increasing investment demand for this class of paper by country banks, savings banks, and industrial corporations. Monthly changes in the rates earned on United States securities are much more moderate, depending to a large extent upon the average amount of special 2 per cent certificates held during each month by the Federal Eeserve Banks. These holdings were particularly large and prolonged during March and April, when the lowest monthly rates of earnings are shown and were sufficiently large to depress the average rate in July. The higher rates in September and December are due to the substantial amounts of tax certificates acquired early in the month by the Federal Reserve Bank of New York from New York City members and carried to maturity by the Federal Reserve Banks. Temporary purchases of certificates and other Government securities from nonmember banks under repurchase agreements have likewise had an uplifting effect upon the average rates of earnings on United States Government securities. On the whole, monthly rates of earnings on all classes of earning assets were higher and steadier during the second part of the year than during the first part. The average rate received by the Federal Reserve Banks on all classes of earning assets during the year under review was 5.50 per cent, compared with 4.04 per cent in 1919 and 4.12 per cent in 1918. Annual rates of earnings from each class of earning assets, by months, during 1920. ' Bills United All Bills dis- bought States classes. counted. in open securimarket. ties. Per cent. Per cent. Per cent. Per cent January 4.46 4.71 4.79 2.18 February 4.88 5.20 5.06 2.18 March 5.12 5.49 5.47 2.10 April 5.23 5.58 5.70 2.10 May 5.36 5.66 5.77 2.22 .Tune 5.51 5.89 5.98 2.24 July 5.72 6.12 6.07 2.15 August 5.81 6.19 6.07 2.22 September 5.81 6.22 6.06 2.27 October 5.94 6.34 6.07 2.20 November 5.98 6.41 6.03 2.17 December 5.98 6.42 6.05 2.43 Average for year 5.50 5.88 5.66 2.21 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

92 ANNUAL REPORT FEDERAL, RESERVE BOARD. BRANCHES OF FEDERAL RESERVE BANKS AND THEIR OPERATIONS. On December 31, 1920, there were 22 branches of Federal Reserve Banks in actual operation, those at Los Angeles, Calif., and Oklahoma City, Okla, authorized by the Federal Reserve Board during 1919 to be established by the Federal Reserve Banks of San Francisco and Kansas City, having been opened for business on January 2 and August 2, 1920, respectively. It is expected that the Helena (Mont.) branch of the Federal Reserve Bank of Minneapolis, also authorized during 1919, will be opened for business February 1, 1921. No new branches were authorized by the Board during the year, nor are any applications for the establishment of branches now pending. Experience gained in the operation of the branches has led to their development along two main lines: The branches located at Cincinnati, Pittsburgh, Birmingham, Jacksonville, Nashville, and Oklahoma City confine their operations largely to clearing and collection of checks, and to supplying currency, both paper and coin, to member banks in branch territories; while the remaining 16 branches render practically the same services to member banks in the branch territories as the parent banks render to member banks in other parts of the districts. While the first-mentioned branches do not engage in discount operations, they receive and transmit to the parent bank applications of their member banks for discounts and advances, and when necessary arrange by telegraph for immediate credit for such paper on the books of the head office. Branches in the second group carry the reserve balances of member banks on their own books, and, with the exception of the Buffalo branch, which carries the reserve balances of Buffalo City members only, participate in the daily clearing through the gold settlement fund maintained by the Federal Reserve Board at Washington. These branches telegraph the Federal Reserve Board each day the gross amount of items collected for the account of each other Federal Reserve Bank and direct-settling branch. After the settlement has been made by the Board, the branches are notified of the amounts credited to them by each other Federal Reserve Bank and direct-settling branch. As the branches do not, however, maintain separate balances in the gold settlement fund, the net debit or credit of each branch is settled through the balance maintained by the parent bank. The following table shows the volume of business handled by each branch and by the Savannah agency during the year 1920: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 93 Operations of Federal Reserve Branch Banks during the calendar year 1920. Items handled.1 Curren p c a y p e (c r) o . in and di o V s f c o o p lu u a m n p t e e e r d A d v a e i r l a y ge M r b e e a s m e n r k b v s e e ' r and bill balances Number. Amount. Received. Paid out. bought. holdings. De 1 c 9 . 2 0. 31, Thousand Thousand Thousand Thousand Thousand Thousand Thousanditems. dollars. dollars. dollars. dollars. dollars. dollars. Buffalo 7,980 2,657,913 151,723 172, 495 2 560,767 218,725 Cincinnati 11,085 3,330,662 98,791 86,516 Pittsburgh 14,183 5,952,400 307,117 365.214 Baltimore 12,344 4,810,793 89,861 132,668 924,665 19,219 Birmingham 2,S07 1,139,355 47,891 36,691 Jacksonville 2,507 606,091 45,480 33,856 Nashville 3,471 897,591 27,449 21,862 New Orleans 2,793 1,215,294 93,909 76,224 709,825 42,104 15,735 Detroit 6,337 2,902,206 295,753 335.215 1,618, 206 63,955 33,057 Little Rock 3,957 698, 233 27,431 24,540 151, 485 9,293 3,585 Louisville 5,320 1,278,526 64, 686 51,934 436,511 16, 430 9,796 Memphis 2,852 722,128 61,204 54,802 264,346 17,805 5,828 Denver 6.373 1,580, 919 33, 219 24,199 232,616 11,833 13,886 Oklahoma City3., 4,537 908,230 4 1,597 4 692 Omaha 7,976 1,702,921 23,547 29,654 382,598 33,182 14,088 El Paso 2,629 509,737 28,806 19,929 72,963 6,819 4,100 Houston 5,566 1,382,258 34,250 34,928 260, 786 15,062 11, 266 Los Angeles5 8,016 1,716,810 80,703 89,0S9 186,215 14,186 29,203 Portland 2,947 748,856 30,429 31,233 214,395 8,939 13,972 Salt Lake City.... 5,469 1,258,938 13,696 17,210 479,719 34,363 8,334 Seattle 3,724 1, (Jll, 875 50,384 43,459 217,*24 6,458 12,281 Spokane 2,562 528,951 8,782 13,677 123,957 10,201 5,461 Total 125,435 37,560,687 1,616,708 1,696,087 6,836,678 290,630 218,536 11,663 9,388 Savannah agency. 1 From Dec. 16, 1919, to Dec. 15, 1920, except that in the case of Oklahoma City and Los Angeles, the period covered dates from opening of branch. 2 Buffalo city banks only. 3 Opened for business Aug. 2, 1920. * For the month of December, 1920. & Opened for business Jan. 2, 1920. BUILDING OPERATIONS. In most of the Federal Reserve Banks the question of securing adequate and permanent quarters has assumed a larger importance during the past year. Additional activities and a greatly increased volume of work has in some banks produced a congestion which has created great discomfort and necessitated the scattering of departments into several buildings. Working conditions have developed which impair efficiency and are not without hazard to the proper custody and handling of money and securities. Early in the year the Federal Reserve Board determined that building operations on the part of the banks should be deferred as long as possible in order not to divert the labor and material which was then so urgently needed for business structures and homes. At the close of business on December 31, 1920, the real estate and build- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

94 ANNUAL REPORT FEDERAL RESERVE BOARD. ing account of each Federal Reserve Bank stood upon its books as follows: Boston $2, 699, 623 New York 4, 092, 497 Philadelphia 500,000 Cleveland 1, 519, 662 Richmond 1, 277, 388 Atlanta 541,273 Chicago 2, 350, 916 St. Louis 541, 414 Minneapolis 590, 000 Kansas City 1, 041, 326 Dallas l, 638, 536 San Francisco 253, 004 Total 17, 045, 639 In 1919' it became evident to the Board that the quarters occupied by the Federal Reserve Bank of Boston were strikingly inadequate and the bank was authorized to proceed with the construction of a new building upon land previously acquired. The work of tearing down old buildings on the property was finished May 21, 1920, and excavations began on May 29, 1920. The end of 1920 finds the new building entirely inclosed, with progress being made toward finishing the interior. Delays have been encountered in procuring steel and limestone, but it is expected that the building will be finished and ready for occupancy by the end of 1921. Actual construction has not begun upon the proposed new building for the Federal Reserve Bank of New York, although land has been acquired, the architects have been selected, and preliminary plans have been given careful attention by the officers and directors of the bank. During the year 1920, the Board approved the purchase of additional land by the Federal Reserve Bank of New York, and the erection thereon of a fireproof storage building for the safekeeping of the bank's files of correspondence and records. This storage building will also provide working space for a number of the bank's employees pending completion of the bank building proper. The building occupied by the Buffalo branch of the Federal Reserve Bank of New York is leased. The Federal Reserve Bank of Philadelphia owns the building which it occupies and which it purchased prior to the current year. The bank also rents additional space for storage purposes. The building has been remodeled to fit it for bank purposes, and a new and adequate vault is now under construction. It is expected that this vault will be ready for use early in 1921. The Federal Reserve Bank of Cleveland has purchased suitable ground but has not begun actual construction. Architects, however, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 95 have been selected and tentative plans and drawings have been submitted to the Federal Reserve Board and approved. The proposed building is carefully planned, with a view to practical utility. Demolition of old buildings preliminary to new construction will probably begin early in 1921. The Pittsburgh branch of the Federal Reserve Bank of Cleveland occupies a building which, during the past year, has been purchased by the bank. Necessary modifications in this building have been authorized, including a provision for additional vault space. The Cincinnati branch of the Federal Reserve Bank of Cleveland occupies leased quarters, but the bank was authorized in October to purchase certain property for the permanent quarters of the branch. The new building of the Federal Reserve Bank of Richmond was authorized in May, 1919, and the work of construction began shortly afterwards. Many delays have been occasioned by inability to secure material, and the building is yet far from finished. In order to provide for additional space, the need for which was not foreseen at the time the building was planned, it has been necessary during the past year to provide an additional story on the original building, and to acquire additional ground for the erection of an annex. The bank, during 1920, also purchased property in Baltimore, upon which it is intended to erect a permanent home for the Baltimore branch. The Federal Reserve Bank of Atlanta is occupying permanent quarters, including the annex authorized in 1919 and completed in 1920; and no further additions or alterations have been found necessary, except that some additional equipment for the vault has been authorized. The branches at Birmingham. Nashville, Jacksonville, and New Orleans are occupying leased quarters. A bank building was purchased in 1919 for the New Orleans branch, but under the terms of the deed possession has not yet been given by the former owners. The Federal Reserve Bank of Chicago, during 1920, razed the buildings upon the ground previously acquired, secured the Federal Reserve Board's approval of all plans and contracts, and commenced actual building operations on November 1, 1920. It is estimated that the total cost of the new building, including vaults, will be approximately $7,500,000. The contract calls for completion on April 1, 1922. The bank leases the quarters occupied by its Detroit branch. The Federal Reserve Bank of St. Louis occupies leased quarters, and while it has purchased a site for a permanent home it has submitted to the Board no definite plans, and immediate operations are not contemplated. The bank leases quarters for its Memphis and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

96 ANNUAL, REPORT FEDERAL RESERVE BOARD. Little Rock branches, and owns the building in Louisville occupied by the Louisville branch. A lot has been acquired for the Little Rock branch, upon which a new building will be erected in 1921. The Federal Reserve Bank of Minneapolis in 1919 purchased a site for a permanent building and selected an architect. Construction, however, has been deferred, and no plans have been submitted for approval. It is the intention of this bank to proceed with the foundation work in 1921, and to finish the building in 1922. The Helena branch of the Federal Reserve Bank of Minneapolis will occupy a building purchased by the bank in 1919 and which is being remodeled for bank purposes. The Federal Reserve Bank of Kansas City acquired a building site in 1918. On April 16, 1920, a contract was let to construct a building having 16 working floors and basement, burglar-proof vaults, etc., for the sum of $3,604,000. Construction was begun June 1, 1920. Excavations, foundation walls, and piers have been finished, and the erection of the steel has been commenced. Serious delays have been experienced in the matter of transportation of steel, but much of the material necessary to complete the building is now on the ground. The contract calls for the building completed for occupancy on October 1, 1921. The Denver and Oklahoma City branches of the Federal Reserve Bank of Kansas City are housed in rented quarters, but the Omaha branch occupies a building purchased by the bank during 1920 at a cost of $165,000. The new building of the Federal Reserve Bank of Dallas is near completion, and should be available for occupancy by some of the departments of the bank early in 1921. Upon the approval of the Federal Reserve Board, contracts were let June 17, 1919, and the work of construction was begun July 5, 1919. It is estimated that the total cost of the building and vaults complete will be approximately $1,575,000. The Federal Reserve Bank of Dallas has recently constructed a new building for its El Paso branch at a total cost of $150,000. The Houston branch is occupying leased quarters, but the bank was authorized by the Board, on October 15, 1920, to purchase a lot in Houston at a cost not to exceed $67,500. This lot was subsequently purchased for $65,000, but plans for a new building have not yet been prepared. The Federal Reserve Bank of San Francisco was authorized by the Board on August 17, 1920, to begin immediately the construction of a new building upon land previously acquired. The estimated cost of this building is $2,376,000, exclusive of commission of architect and superintendent of building construction, which together will be 9 per cent. Old structures which stood upon the site for the new building have for the most part been razed, and during the latter Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL, REPORT FEDERAL RESERVE BOARD. 97 part of 1920 the erection of the new building was begun. All branches of the Federal Reserve Bank of San Francisco occupy leased quarters. AMENDMENTS TO THE FEDERAL RESERVE ACT. During the past year the Federal Reserve Act has been amended but once. Certain laws, however, have been passed and others amended relating to the Federal Reserve System and to the operation of national banks, which in effect modify the provisions of the Federal Reserve Act. These laws will be taken up in order. By act approved April 13, 1920, section 14 of the Federal Reserve Act was amended so as to authorize Federal Reserve Banks, subject to the approval, review, and determination of the Federal Reserve Board to establish discount rates graduated or progressed on the basis of the amount of the advances and discount accommodations extended by the Federal Reserve Bank to the borrowing bank. The purpose of this amendment was to check excessive borrowing from Federal Reserve Banks by any one member bank by making it possible for the Federal Reserve Banks to charge higher rates against a member bank which is overborrowing than against one which' limits its borrowings to a reasonable amount. Pursuant to this amendment the Federal Reserve Banks of Atlanta, St. Louis, Kansas City, and Dallas have established graduated discount rates which have been approved by the Board. These rates were subsequently discontinued by the Atlanta bank. Section 5182 of the Revised Statutes was amended by an act approved January 13, 1920, so as to authorize the issue of national bank notes attested by the written or engraved signatures of the president or vice president and the cashier of the national bank issuing such notes, and to provide that such signatures may be attached either before or after the receipt of such notes by the association. In view of the fact that under section 18 of the Federal Reserve Act, Federal Reserve Banks are authorized to issue Federal Reserve Bank notes under the same terms and conditions that national banks may issue notes, this amendment relates to the Federal Reserve Banks as well as to national banks. Much inconvenience and expense incident to the issue of bank notes will be avoided by reason of the provision in this amendment permitting the signatures of the officers signing such notes to be engraved on the notes before they are delivered to the issuing bank. Section 210 (d) of the Transportation Act of 1920, approved February 28, 1920, provides in part that the Interstate Commerce Commission or the Secretary of the Treasury may call upon the Federal Reserve Board for advice and assistance with respect to any loan or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

98 ANNUAL REPORT FEDERAL RESERVE BOARD. application for any loan made by the United States to any railroad under the authority of section 210 of the act. As mentioned on pages 166 and 167 of the annual report of the Secretary of the Treasury for the fiscal year 1920, the Federal Reserve Board has been called upon by the Secretary of the Treasury for such advice and assistance, and for this purpose created a committee known as the Railway Loan Advisory Committee to the Federal Reserve Board. This committee has been, since its organization on April 1, 1920, actively engaged in assisting the Secretary of the Treasury in the performance of the duties imposed upon him by the Transportation Act of 1920. By the act approved May 26, 1920, the so-called Kern amendment to section 8 of the Clayton Anti-trust Act, relating to interlocking directorates, was amended so as to authorize the Federal Reserve Board to grant permits to private bankers to serve not more than two banks, banking associations, or trust companies organized under the laws of the United States or any State of the United States when those banks are not in substantial competition with the applying banker or with each other. Prior to this amendment the Board had no authority, under the terms of the Kern amendment, to grant permits to private bankers to serve banks when they were prohibited from serving such banks by the terms of the Clayton Act, although the Board did have such power with respect to directors, officers, and employees of member banks. The appropriation act approved May 29, 1920, in certain sections thereof, provides for the discontinuance of the subtreasuries of the United States from and after July 1, 1921, or at such earlier date oi dates as the Secretary of the Treasury may deem advisable, and authorizes the Secretary of the Treasury in his discretion to transfer any and all of the duties and functions of the assistant treasurers or the subtreasuries to the Treasurer of the United States, or the mints or assay offices, or to utilize any of the Federal Reserve Banks acting as depositaries or fiscal agents of the United States for the purpose of performing any or all of these duties and functions. The Secretary of the Treasury is further authorized to assign any and all of the rooms, vaults, equipment and safes or space in the buildings used by the subtreasuries to any Federal Reserve Bank acting as fiscal agent of the United States. As stated on page 73, the subtreasuries at Boston, Chicago, New York, and San Francisco have already been discontinued and their functions taken over by the Federal Reserve Bank located in the respective city, and it is planned to close the remaining subtreasuries and transfer their functions to the Federal Reserve Banks as rapidly as possible. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 99 The Board has no further amendments to suggest to Congress at this time. It desires, however, to express its opposition to any legislation which would impair the ability of the Federal Reserve Banks to exercise the proper control over their credit transactions as well as to legislation tending to remove the wise limitations now imposed by the Federal Reserve Act upon the character of paper eligible for discount. The Board would point out that the power of the Federal Reserve System to expand credits in amounts sufficient to meet great emergencies has been demonstrated repeatedly during the past five years, and it is not believed that any greater latitude is necessary or desirable. LAW DIVISION. There has been no substantial change during the past year in the work of the Law Division, and a reference to pages 56-58 of the last annual report of the Board will show the general character of that work and the scope of the duties of the Law Division. It is not necessary to add anything to what was said in that report as to the work of the Law Division under, the subheadings State laws, Membership of State banks and trust companies, Clayton Antitrust Act, and Opinions and rulings, except to state that during the past year the Board has approved, after examination and report by the Law Division, 360 applications made by State banking institutions for membership, and has received and considered, after similar examination and report, 259 applications filed with it under the provisions of the so-called Kern amendment to section 8 of the Clayton Antitrust Act relating to interlocking bank directorates. Certain special features of the work of the Law Division during the past year are, however, of sufficient importance to be mentioned in this report. Regulations,—The Board's regulations which have been issued from time to time in the past were recently added to, revised, and reissued in a new series, series of 1920. A revision of the earlier regulations was necessary in order to bring the regulations up to date and to incorporate in them the amendments to the law and rulings of the Board made since the last series of the regulations, series of 1917, was issued. New regulations were added covering the organization and operation of corporations under the provisions of section 25 (a) of the Federal Reserve Act, which section was added by the amendment approved December 24, 1919, and is commonly known as the Edge Act, and covering interlocking bank directorates under the Clayton Act as amended. In connection with the preparation of the new series, the Law Division has been called upon to draft the new regulations and to revise the earlier ones and to render advice and assistance covering the legal aspects of the matters involved. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

100 ANNUAL REPORT FEDERAL RESERVE BOARD. Trust powers of "national baniks.—During the past year 272 national banks have been granted permits under the terms of section 11 (k) of the Federal Reserve Act, of which 247 were original applications and 25 were supplementary applications. Recently the legal effect of this section as amended has been clarified and the Board's interpretation thereof confirmed by a number of decisions rendered by the courts of various States. It will be recalled that the Supreme Court df the United States, in an opinion1 rendered June 11, 1917, upheld the constitutionality of section 11 (k) as originally enacted. By the act of September 26, 1918, the section was amended so as to permit national banks to compete for trust business with State banks and trust companies upon more equal terms. Since that amendment the State courts of New York,2 Connecticut,3 and Wisconsin 4 have rendered decisions substantially to the effect that it is now beyond the constitutional power of a State to withhold from national banks located within its borders the authority to exercise trust powers when competing State institutions are permitted to exercise those powers, irrespective of whether the discrimination attempted to be made by the State against the national banks takes the form of an express statutory prohibition or is to be implied from the mere absence of permissive legislation. The opinions in these cases have all been published in the Bulletin. Edge Act.—Throughout the year the Law Division has been called upon frequently to prepare opinions with reference to the interpretation of sections 25 and 25 (a) of the Federal Reserve Act, which sections deal with foreign financial corporations and the rights of national banks to invest in the stock thereof, and to advise as to the requirements of the law in connection with the organization of corporations under the terms of section 25 (a), the so-called Edge Act. Recently the Board has received numerous applications by national banks for permission to invest in the stock of the two international financial corporations wThich have been in process of organization under that1 act, and these applications have all been referred to the Law Division before being acted upon by the Board. Summary of amendments.—The Law Division during the year compiled a summary of the various acts amending the Federal Reserve Act, including those laws which specifically amend the text of that act and those which amend it in substance without effecting a change of text. 1 First National Bank of Bay City v. Fellows, Attorney General, and others, 244 U. S., 416. 2 In the matter of Mollineaux, 179 New York Supplement, 90. 8 In re Hamilton, 110 Atl., 54. * In re Stanchfield, 178 N. W., 310. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL, RESERVE BOARD. 101 FEDERAL ADVISORY COUNCIL. The Federal Advisory Council held its four statutory meetings in Washington during 1920 on the following dates: February 17, May 17, September 20, and November 15. No other meetings of the council were held during the year. CONFERENCES HELD BY THE BOARD. The Federal Keserve Board conferred with the Federal Advisory Council on the occasion of each of its meetings, and while the council was in session in Washington on May 18 a joint conference was held with members of the council and the Class A directors of the Federal Eeserve Banks for the purpose of discussing the credit situation as it then existed. On April 7 the Board held a conference with the governors of the Federal Eeserve Banks, and on October 15 a joint conference was held with the Federal Reserve agents and the governors of the Federal Reserve Banks. At these conferences matters relating to the operations of the Federal Reserve System were discussed. BOARD'S ORGANIZATION, STAFF, AND EXPENDITURES. There have been numerous changes in the Board's organization and staff during the past year. On February 2, Hon. David F. Houston, previously Secretary of Agriculture, took the oath of office as Secretary of the Treasury, succeeding Hon. Carter Glass, and thereby became ex-officio member and chairman of the Federal Reserve Board. The resignation of Albert Strauss, vice governor of the Board, was accepted by the President March 15. Mr. Strauss had been a member of the Board since September 18, 1919, and vice governor of the Board throughout his period of office. Mr. Strauss resigned to reenter private business. Hon. Edmund Platt, chairman of the House Banking and Currency Committee, was appointed by the President to fill the unexpired term of Mr. Strauss, and took office on June 8. At the time of his nomination Mr. Platt was a Member of Congress, having represented the twenty-sixth New York district since 1913. Throughout the term of his service in Congress Mr. Platt was a member of the Committee on Banking and Currency, and served as chairman from March 4, 1919, to the date of his resignation. In May, Edward L. Smead was appointed chief of the Board's Division of Reports and Statistics, succeeding M. Jacobson, who previously held the dual title of statistician and chief, Division of Reports and Statistics. Mr. Smead was appointed to the Board's staff on April 19, 1915. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

102 ANNUAL REPORT FEDERAL RESERVE BOARD. On June 30 George L. Harrison, general counsel of the Board, resigned to become deputy governor of the Federal Reserve Bank of New York, and Walter S. Logan, assistant counsel, was appointed general counsel. The President, on July 23, redesignated W. P. G. Harding as Governor of the Federal Reserve Board for the period ending August 10, 1922, and Edmund Platt was designated as vice governor of the Board for the period July 23, 1920, to August 10, 1922. The term of office of Henry A. Moehlenpah, who was appointed on September 5 and took office on November 10, 1919, to fill the unexpired term of Frederic A. Delano, expired August 9, 1920. The President, on September 29, during a recess of the Senate, appointed David C. Wills, since 1914 chairman of the board of directors and Federal reserve agent of the Federal Reserve Bank of Cleveland, a member of the Board to serve until the end of the next session of the Senate. William W. Paddock, chief of Division of Examination, resigned on September 30 to become deputy governor of the Federal Reserve Bank of Boston, and effective October 6 James F. Herson, chief Federal reserve examiner, was appointed chief of the Division of Examination in addition to his other duties. On October 16 Robert G. Emerson, assistant secretary, was appointed assistant to the governor, and Walter L. Eddy was appointed assistant secretary, William W. Hoxton, executive secretary, was appointed secretary of the Board November 1, upon the resignation of Webb T. Chapman, who had been secretary of the Board since September 1, 1919, and who had been connected with the Board since its organization in 1914. The total cost of conducting the work of the Board during the year 1920, including salaries of members and expense of printing and circulating the Federal Reserve Bulletin, was $712,043.63. Two assessments were levied against the Federal Reserve Banks during the year, aggregating $700,766.52, or approximately 296 thousandths of 1 per cent of their average paid-in capital and surplus for the year. Further details relative to the operation of the Federal Reserve Board and the annual reports of Federal reserve agents appear as exhibits in the Appendix. 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. 45525 °—21 8 103 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISCOUNT RATES. No. 1.—Discount rates (high and low for each year) in force since organization of Federal Reserve Banks. Character of paper and maturities. Commercial paper, n. e. s. Federal Reserve Bank. Within 10 days. Boston: 1914-152. . . 1916 1917 1918 . 1919 . . 1920 New York: 1914-15 2 1916 1917 . 1918 .. 1919 1920 PJiiladelphia: 1914-15 2 1916 .hgiH 6 31 51 3 54 .woL CO CO CO CO CO CO 11 to 30 days. .hgiH 6 4 51 4 4 .woL Within 15 days. 4 31 4 4 4 4 .hgiH 4 4 44 7 31 4 4f .woL 1 16 to 30 days. 4 4 3 31 4 44 .hgiH 5 5 4| 7 41 44 44 7 .woL 31 to 60 days. 4 44 44 4 44 4| .hgiH 6 4 5 5 44 7 6 4 44 44 44 7 6 4 .woL 61 to 90 days. 4 4 4 44 4 4 4 41 4| 4 4 .hgiH 6 4 5 5 44 7 6 4 44 41 44 6 4 .woL Agricul- tural and live- stock paper over 90 days. 4 4 4 44 44 44 4 4 4 44 44 44 4 4 .hgiH 6 5 5 5 5 7 6 5 5 5 5 7 6 41 .woL Paper secured by United States Gov- ernment war obligations. Within 15 days. 5 5 5 5 5 5 5 5 5 5 5 5 41 41 .hgiH 31 4 44 6 34 4 44 6 .woL 16 to 90 days. 31 31 4 41 3 31 4 44 .hgiH 4 41 44 6 4 41 44 6 .woL Trade accept- ances within 60 days (see note 1). 31 4 4 41 31 4 41 44 .hgiH 31 34 4 44 44 7 34 31 4 44 44 7 3 31 .woL Trade accept- ances 61 to 90 days. 31 3 31 4 41 44 31 31 31 4 44 44 3 3 .hgiH 34 34 4 41 44 7 34 34 4 44 44 7 3 31 .woL Bankers' accept- ances within 3 months. 34 3 34 4 44 44 31 34 34 4 44 44 3 3 .hgiH .woL Com- modity paper within 90 days.1 ii 5 5 41 4 44 4 6 44 .hgiH 34 4 4 CO CO d P o W 1 34 34 4 W O 3 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1917 .... 1918 1919 .. 1920 Cleveland: 1914-15 2 6 34 1916 .... 34 34 1917 . .. . . .. 1918 1919 1920 Richmond: 1914-15 2 fi 4 1916 .. 4 4 1917 1918 . . . 1919 1920 Atlanta: 1914-15 2 6 4 1916 4 4 1917 1918... 1919 1920 Chicago: 1914-15 2. 6 1916 34 1917 . 1918 .. 1919 1920 CO CO HM H|M 4 3 44 4 44 4 4 4| 44 4| 4f 4 4| 4f 6 4f 6 4f 6 6 4 6 4 4 44 4 34 44 4 44 4 4f 44 41 4! 41 4f 4| 41 6 4| 6 6 6 4 6 4 4 4 4 34 44 4 4| 4 5 44 44 4f 4f 6 4f 6 4| 6 4 4 4 4 34 44 4 41 4 4f 44 4f 41 4| 7 4| 7 4f 6 4 4 4 4 34 44 4 4 4 4| 44 4 4| 4f 4| 7 4| pot 4 44 41 4| 4 4 4 44 4f 41 4 4 4 5 44 6 41 64 4 4 4 44 4 41 44 41 4! 7 41 6 4 44 4 44 4 4! 44 4f 41 7 4| pot 4 34 3 4 34 4 34 4! 44 4 34 41 4 44 4 41 41 4 41 41 41 44 6 41 6 6 41 6 41 6 44 34 34 44 44 34 3 44 44 34 3 4 34 4 3 41 44 4 34 41 4 44 4 4f 41 4 41 41 44 44 6 41 6 41 6 41 6 44 6 4 34 34 4 4 34 34 44 4 34 34 4 34 4 34 5 44 34 41 4 4 43 41 4 41 4 44 44 6 41 44 6 44 6 44 6 64 4 64 44 34 34 4 4 5 ! 5 34 34 44 4 34 34 4 34 4 34 41 44 4 34 41 4 44 4 4| 4f 41 4 41 4 44 44 7 41 6 44 6 44 7 44 6 44 44 44 34 34 5 44 34 3 4 34 34 34 5 41 4 34 41 4 44 34 4f 41 41 4 41 4 44 44 7 41 6 44 6 44 44 pM DHI pot pscf uH> pot pot pot pot pot 34 34 4 44 41 6 5 4 34 4 4 4 44 44 44 44 44 4 34 34 4 44 44 6 5 34 34 34 4 44 44 6 5 34 34 4 34 44 4 44 44 7 44 6 5 OC OC OC OC OC OC pot pot pot pot 3* 4 OC OC OC 3 3 3 1 Commodity rates were established during September and October, 1915, and merged with those for commercial paper of corresponding maturities in November and December, 1917. 2 Nov. 16,1914, to Dec. 31,1915. O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Ho, 1.—Discount rates (high and low for each year) in force since organization of Federal Reserve Banks—Continued. Character of paper and maturities. Commercial paper, n. e. s. Federal Reserve Bank. Within 10 days. St. Louis: 1914-152 .. 1916 . 1917 1918 1919 1920 . . . . Minneapolis: 1914-15 2 1916 1917 1918 1919 1920 Kansas City: 1914 152 1916 1917 .hgiH 6 3 6 4 6 41 .woL CO CO 4 4 CO CO • HM HM • 11 to 30 days. .hgiH 6 4 6 4 6 41 .woL Within 15 days. 4 4 4 4 4 4 .hgiH 4 4 4f 6 4 41 4| 7 4 .woL 16 to 30 days. 31 4 4 4 4 41 4f 4 .hgiH 41 4f 4* 6 7 41 .woL 31 to 60 days. 4 41 4f 4f 4 41 4f 4f 41 .hgiH 6 4 41 4| 4! 6 61 4 41 7 61 41 .woL 61 to 90 days. 4 4 4 41 4| 4f 4 4 4 4| 4 4 41 .hgiH 6 4 41 41 6 61 41 5 5 5 7 61 41 41 .woL Agricultural and live- stock paper over 90 days. 4 4 4 41 4| 41 41 41 5 5 5 4 4 41 .hgiH 6 5 51 51 51 6 61 5 51 51 51 7 61 5 5 .woL Paper secured by United States Gov- ernment war obligations. Within 15 days. 5 41 41 51 51 51 5 5 5 51 51 51 5 5 5 .hgiH 31 4 4f 51 31 4 4f 6 31 .woL 16 to 90 days. 31 31 4 41 3 31 1 41 3 .hgiH 4 4f 51 4 35 6 4 .woL Trade accept- ances within 60 days (see note 1). 31 4 4 41 31 4 41 41 31 .hgiH 31 31 4 41 41 6 31 31 41 41 61 31 4 4 .woL Trade accept- ances 61 to 90 days. 31 3 3 4 41 31 31 31 41 41 31 31 4 .hgiH 31 31 4 41 41 6 31 4 41 41 61 31 4 4 .woL Bankers' accept- ances within 3 months. 31 31 31 4 41 41 31 4 41 41 31 31 4 .hgiH 51 6 .woL Com- modity paper within 90 days.1 5 5 .hgiH 3 31 31 3 31 41 3 4 4 .woL 3 3 31 3 3 31 3 3 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1918 1919 1920 .. ... Dallas: 1914-15 2 6 1916 4 1917 1918 1919 1920 San Francisco: 1914-15 2 1916 . 1917 1918 1919 . . 1920 CO CO 4 4 CO CO 6 4 4 4 6 31 CO CO HM HN 41 4 51 41 51 41 51 41 51 •5 31 41 4 4 4 5 41 5 5 5 5 5 5 51 51 5 4 5 4 5 41 5 4f 6 5 6 5 6 5 6 5 6 51 6 41 6 41 6 5 6 5 54 5 61 4 61 4 61 41 31 31 4 4 3 3 4 4 4 4 41 41 31 31 4 31 3 3 4 31 41 4 41 4 4* 4 5 41 31 34 4 3J 34 4 31 34 3 41 4 4f 41 4f 41 5 41 51 5 4 31 41 4 41 31 44 4 5 41 5 4f 5 4f 5 5 51 51 5 4 5 41 5 41 5 41 6 5. 6 5 6 5 6 5 6 51 6 41 6 41 6 5 6 5 54 5 :? 61 4 61 41 61 6 3 3 31 34 4 4 41 41 6 51 3 3 31 34 4 31 41 31 41 31 41 41 51 51 31 31 4 31 4 3 4 3 4 5 41 5 41 5 41 51 51 41 31 41 4 4|. 4 4! 4 XJi a 4f 5 4| 5 4| 5 4f 51 51 41 4| 41 5 5 4f o 6 4! 6 6 6 4f 6 54 6 41 6 41 6 4| 6 41 6 5 d 1 Commodity rates were established during September and October, 1915, and merged with those for commercial paper of corresponding maturities in November and December, 1917. 2 Nov. 16,1914, to Dec. 31, 1915. 3 Maximum rate during 1919 for maturities 16 to 60 days, 4f per cent. 4 Commodity paper rates for bills maturing within 30 days, 31 per cent; 31 to 60 days, 4 per cent; 61 to 90 days, 4% per cent. 5 Oct. 20, 1917, rate of 3£ 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 commercial paper rate, trade acceptances maturing within 15 days were taken at the lower rate. NOTE 2.—Rates on paper secured by War Finance Corporation bonds, established by all Federal Reserve Banks between Apr. 4 and 11, 1919, at 1 per cent higher than on commercial paper of corresponding maturities, were automatically discontinued effective Apr. 1,1920, coincident with the maturity of all outstanding War Finance Corporation bonds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE NOTES. O 00 No. 2.—Federal Reserve notes outstanding, held by each bank, and in actual circulation, also gold and eligible paper pledged as collateral for outstanding notes. MONTHLY FIGURES FOR 1920. [In thousands of dollars.] Total. Boston. New York. 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. St. Louis. M ap i o n l n is e . - K C an it s y a . s Dallas. Sa c n is c F o r . an- Federal Reserve notes: Outstanding i — Jan. 30 3,130,783 246,496 898,612 232,709 268,746 135,555 146,338 512,616 153,298 83,511 106,247 75,691 270,964 Feb. 27 3,254,806 265,445 920,264 256,018 295,692 134,335 151,476 543,157 155,071 83,387 108,094 80,377 261,490 Mar. 26 3,289,312 275,494 934,878 255,000 306,967 131,677 150,133 547,135 154,188 83,245 107,693 81,261 2C1, 641 Apr.30 3,326,186 275,059 943,954 250,831 320,470 130,503 152,646 566,730 149,423 82,518 104,333 83,485 260,234 t May 28 3,359,493 281,140 963,366 257,911 323,186 124,700 149,413 579,961 146,447 81,115 102,736 86,048 203,470 June 25 3,396,168 288,796 980,049 260,479 328,508 126,717 144,589 583,923 144,320 79,410 103,582 85,910 269,885 July 30 3,425,788 295,953 981,658 265,305 331,711 131,481 143,037 592,052 144,923 78,095 105,409 82,729 273,435 Aug. 27 3,471,731 305,679 972,767 277,707 349,866 137,773 146,693 593,521 145,481 77,013 109,295 82,826 273,110 Sept. 24 3,586,497 314,210 975,636 287,329 365,045 145,847 150,914 619,886 151,631 82,912 113,244 92,764 287,079 Oct. 29 3,666,170 312,492 986,339 284,386 370,252 151,479 183,492 632,736 156,370 84,377 117,457 95,369 291,421 Nov. 26 3,653,281 303,243 996,447 284,598 371,065 151,585 177,209 632,175 155,382 83,756 113,777 89,261 294,783 Dec. 30 3,738,880 305,503 1,030,354 293,624 379,751 161,252 179,946 634,429 155,722 81,836 118,605 84,714 313,144 Held by bank- w Jan. 30 279,839 11,505 129,442 9,907 12,190 4,778 4,248 31,507 19,089 1,876 6,682 4,014 44,601 o Feb. 27 234,822 5,743 93,977 13,478 11,857 4,800 5,698 34,232 16,293 1,600 5,880 3,288 37,976 Mar.26 241,273 13,797 100,690 10,421 10,923 5,335 4,354 27,070 18,184 1,339 6,080 3,894 39,1S6 Apr.30 251,631 8,491 105,354 11,388 14,595 5,859 5,180 39,097 18,336 1,564 5,483 3,579 32,705 May28 252,472 7,196 108,539 8,820 12,222 3,948 4,333 44,731 17,363 1,932 5,164 4,040 34,184 June 25 279,450 8,179 120,817 11,694 12,719 4,608 3,997 52,474 18,031 1,682 5,960 3,559 35,730 July 30 305, 650 11,111 132,0S9 10,860 16,185 6,267 3,760 58,463 18,406 1,721 6,522 3,537 36,749 i Net amount received by Federal Reserve Bank from Federal Reserve Agent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Aug. 27 268,094 9,548 117,842 9,679 14,982 3,804 4,267 49,592 17,165 1,112 5,515 3,411 31,177 Sept. 24 306,501 15,961 119,935 14,982 14,398 5,702 3,911 64,698 18,348 1,244 5,623 3,982 37,717 Oct. 29 314,867 16,324 109,633 11,120 18,129 5,363 5,758 78,550 18,472 1,663 5,882 4,298 39,675 Nov. 26 327, 743 13,127 120,126 11,404 18,192 5,093 4,811 87,416 19,215 1,619 5,441 4,797 . 36,502 Dec. 30 394,194 14,307 165,838 12,664 29,026 6,090 4,780 86,238 19,112 1,769 6,731 5,240 42,399 In actual circulation- Jan. 30 2,850,944 234,991 769,170 222,802 256,556 130,777 142,090 481,109 134,209 81,635 99,565 71,677 226,363 Feb. 27 3,019,984 259,702 826,287 242,540 283,835 129,535 145,778 508,925 138,778 81,787 102,214 77,089 223,514 Mar. 26 3,048,039 261,697 834,188 244,579 296,044 126,342 145,779 520,065 136,004 81,906 101,613 77,367 222,455 Apr. 30 3,074,555 266,568 838,600 245,443 305,875 124,644 147,466 527,633 131,087 80,954 98,850 79,906 227,529 May 28 3,107,021 273,944 854,827 249,091 310,964 120,752 145,080 535,230 129,084 79,183 97,572 82,008 229,286 June 25 3,116,718 280,617 859,232 248,785 315,789 122,109 140,592 531,449 126,289 77,728 97, 622 82,351 234,155 July 30 3,120,138 284,842 849,589 254,445 315,526 125,214 139,277 533,589 126,517 76,374 98,887 79,192 236,686 Aug. 27 3,203,637 296,131 854,925 268,028 334,884 133,969 142,426 543,929 128,316 75,901 103,780 79,415 241,933 Sept. 24 T 3,279,996 298,249 855,701 272,347 350,647 140,145 147,003 555,188 133,283 81,668 107,621 88,782 249,362 Oct. 29 3,351,303 296,168 876,706 273,266 352,123 146,116 177,734 554,186 137,898 82,714 111, 575 91,071 251,746 Nov.26 3,325,538 290,116 876,321 273,194 352, 873 146,492 172,398 544,759 136,167 82,137 108,336 84,464 258,281 Dec. 30 3,344,686 291,196 864,516 280,960 350,725 155,162 175,166 548,191 136,610 80,067 111,874 79,474 270,745 Collateral pledged as security for outstanding Federal Reserve notes: Gold and gold certificates— Jan. 30 1,119,426 72,129 281,778 81,721 122,298 39,204 59,938 217,271 57,703 33,755 39,430 32,369 81,830 O Feb. 27 1,145,479 89,259 308,402 86,210 124,045 32,135 54,541 204,693 52,617 33, 581 38,017 32,182 89,797 % Mar.26 1,186,829 100,107 312,568 87,592 132,459 39,067 54,839 197,160 47,594 33, 939 37,106 35,991 108,407 Apr. 30 1,137,928 119,072 317,217 87,503 142,813 40,914 54,521 160,315 44,399 33,487 34,646 27,541 75,500 May 28 1,112,040 118,453 285,599 87,384 146,898 36,960 50,934 169,826 44,583 32,834 34,190 26,403 77, 976 June 25 1,150,175 116,509 283,547 86,652 149,321 40,797 49,034 174,208 45,416 32,329 36,265 25,186 110, 911 July 30 1,153,712 136,866 279,139 105,697 151,473 37,561 47,218 157,137 44,719 31,309 35,202 27,160 100, 231 Aug. 27 1,154,684 128,392 275,950 116,899 150,744 42,768 48,109 166,067 45,537 31,057 38,078 25,997 85, 086 Sept. 24 1,211,619 156,823 267,490 124,322 141,583 45,972 52,624 190,791 47,307 27,671 39,817 30,584 86,635 Oct. 29 1,175,118 130,705 262,733 116,778 142,065 41,604 64,668 176,381 48,816 26, 851 41,320 28,560 94,637 Nov.26 1,197,681 123,356 249,032 122,191 161,358 46,980 61,184 188,100 48,068 26,290 39,921 22,982 108,219 Dec. 30 1,276,214 135,357 254,575 132,916 177,694 53,917 60,836 198,554 49,668 25,905 41,248 26,484 119,060 o CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Ho. 2.—Federal Reserve notes outstanding, held by each bank, andin actual circulation, also gold and eligible paper pledged as collateral for outstanding notes—Continued. MONTHLY FIGURES FOR 1920—Continued. [In thousands of dollars.] Total. Boston. New York. Ph p i h la i d a. el- C la l n ev d e . - m R o ic n h d - . Atlanta. Chicago. St. Louis. M ap i o n l n i e s - . K C a i n t s y a . s Dallas. [Sa c n i s F c r o a . n- Collateral pledged as security for out- d standing Federal Reserve notes—Con. $> Eligible paper- Jan. 30 2,647,947 212,529 951,245 155,901 210,819 101,972 108,953 385,610 104,222 60,075 95,847 63,548 197,226 Feb. 27 2,930,572 196,503 1,082,151 193,620 242,582 111,999 119,230 442,176 116, 519 60,356 105,375 73,598 186,463 o Mar.26 2,837, 877 213,654 1,010, 206 188, 671 240,252 106,883 107,317 466, 833 118, 832 58,873 107,193 57,134 162,029 3 Apr.30 2,856, 705 185,668 1,014,607 176,719 228,303 100,619 121,533 479,036 113, 683 64,284 111, 086 75,520 185,647 May28 2,865,104 204,576 981,794 184,213 223,725 105,945 122,202 482,837 113,540 67,154 113,253 75,046 190, 819 June 25 2,788,397 179,399 968, 861 175,059 225,563 104,064 118,673 481,513 110,311 68,367 112,218 73,880 170,489 July 30 2,777,081 178,482 962,514 161,189 208,023 108,845 117, 655 484,125 110, 228 72,614 112, 212 72,733 188,461 Aug. 27 2,893,442 205,662 988, 671 165,319 258,073 106,077 121,068 479,553 114,519 64,609 113, 603 74,203 202,085 Sept. 24 2,932,892 214,111 916,037 182,213 269,189 117,130 124,369 512,459 117, 961 69,003 110,041 77,161 223,218 Oct. 29 3,000,646 223,102 992,700 173,166 252,870 116,270 142,894 508,005 121,883 69,856 117, 816 78,708 203,376 Nov. 26 2,889,634 195,221 942,464 170,083 233,970 115,830 139,416 506,506 121, 287 64,438 115,445 77,355 207, 619 Bee. 30 2,893,005 198,075 983,486 168,369 224,550 117,175 135,373 501,419 115,206 69,233 112,931 69,132 198,056 W o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 3.—Collateral {gold and eligible paper) pledged with Federal Reserve Agents as security for Federal Reserve notes outstanding and gold available as reserve against notes in circulation. WEEKLY FIGURES FOR 1920. [In thousands of dollars.] Federal Reserve notes outstanding. Federal Reserve notes in circulation. Collateral pledged as security. Gold available as re- Federal serve against notes Gold and gold certificates. Eligible paper. Reserve after setting aside Date. notes held a reserve of 35 per I by issuing cent against net Amount. In re- In settle- bank. Amount. deposits. Total. Total. va I u n lt. d T U e f r S u m e n t a n a i p s t t d e t e u i - s d r o y n . R F f B m u e e o s d n e a e e d n r r r d v - t a . e l Total. r A eq m u o ir u e n d t . p a E l m e x d o c g e u e s n d s t . Amount. c P e e n r t. 9 1920. Jan. 2 3,291,342 3,936,258 1,205,596 244,148 101,120 860,328 2,730,662 2,085,746 644,916 292,350 2,998,992 1,473,376 49.1 9 3,244,314 3,800,057 1,209,508 248,148 105,786 855,574 2,590,549 2,034,806 555,743 329, 946 2,914,368 1,501,537 51.5 3 16 3,177,290 3,750,985 1,136,326 242,148 96,105 798,073 2,614,659 2,040,964 573,695 327,411 2.849, 879 1,467,610 51.5 s 23 3,146,156 3,794,071 1,126,261 246,148 91,979 788,134 2,667,810 2,019,895 647, 915 301, 929 2,844,227 1,451,651 51.0 30 3,130,783 3,767,373 1,119,426 240,148 93,167 786, 111 2,647,947 2,011,357 636,590 279,839 2.850, 944 1,441, 659 50.6 Feb. 6 3,139,652 3,806,688 1,116,427 240,148 102,742 773,537 2,690,261 2,023,225 667,036 247,877 2,891, 775 1,436,723 49.7 13 3,187,974 3,882,933 1,121,757 244,148 97,579 780,030 2,761,176 2,066,217 694,959 228,887 2,959,087 1,426,977 48.2 20 3,221,789 3,984,956 1,150,798 241,148 102,890 806,760 2,834,158 2,070,991 763,167 244,665 2,977,124 1,410,411 47.4 27 3,254,806 4,076,051 1,145,479 246,148 97,804 801,527 2,930,572 2,109,327 821,245 234,822 3,019,984 1,423,613 47.1 Mar. 5 3,270,721 3,999,144 1,138,690 255,151 97,788 785,751 2,860,454 2,132,031 728,423 240,711 3,030,010 1,427,292 47.1 12 3,281,343 4,015,970 1,142,576 250,151 99,672 792,753 2,873,394 2,138,767 734,627 241,593 3,039,750 1,427,391 47.0 19 3,292,819 3,773,138 1,161,695 251,051 98,662 811,982 2,611,443 2,131,124 480,319 245,686 3,047,133 1,469,515 48.2 3,289,312 4,024,706 1,186,829 254,621 104,227 827,981 2,837,877 2,102,483 735,394 241,273 3,048,039 1,436,639 47.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 3.—Collateral (gold and eligible paper) pledged with Federal Reserve Agents as security for Federal Reserve notes outstanding and gold available as reserve against notes in circulation—Continued. fcO WEEKLY FIGURES FOR 1920—Continued. [In thousands of dollars.] Federal Reserve notes outstanding. Federal Reserve notes in circulation. Collateral pledged as security. Gold available as re- Federal serve against notes Gold and gold certificates. Eligible paper. Reserve after setting aside Date. notes held a reserve of 35 per by issuing cent against net En Amount. In re- In settle- banks. Amount. deposits. Total. demption ment Excess O Total. va I u n lt. T U f r S e u n t a n a i s t t d u e e - r d s y. R F B f e u e o d s n a e e d r r r d v - a . e l Total. r A eq m u o ir u e n d t . p a l m ed o g u e n d t . Amount. c P e e n r t. 1920. Apr. 2. 3,307,064 3,917,208 1,169,137 254,901 97,766 816,470 2,748,071 2,137,927 610,144 229,741 3,077,323 1,459,434 47-4 9. 3,327,614 3,889,090 1,173,125 254,531 112,194 806,400 2,715,965 2,154,489 561,476 247,397 3,080,217 1,477,557 48.0 1G. 3,326,948 3,919,089 1,170,313 253.031 110,884 806,398 2,748,776 2,156,635 592,141 253,255 3,073,693 1,474, 295 48.0 I 23. 3,335,140 3,965,752 1,150,658 253,931 102,190 794,537 2, 815,094 2,184,482 630,612 266,833 3,068,307 1,462,813 47.7 30. 3,326,186 3,994, 633 1,137, 928 255.032 97,417 785,479 2,856, 705 2,188,258 668,447 251,631 3,074,555 1,436,309 46.7 May 7. 3,340,477 3,975,383 1,121,311 257,692 92,979 770,640 2,854,072 2,219,166 634, 906 248,133 3,092,344 1,455,082 47.1 14. 3,344,705 4,012,767 1,115,902 257, 793 97,369 760,740 2,896, 865 2,228,803 668,062 261,471 3,083, 234 1,434,619 46.5 21. 3,354,194 3,959,944 1,098,823 257,802 107,846 733,175 2,861,121 2,255,371 605,750 268,992 3,085,202 1,455,005 47.2 28. 3,359,493 3,977,144 1,112,040 258,352 106,675 747,013 2,865,104 2,247,453 617, 651 252,472 3,107,021 1,464,442 47.1 June 4. 3,377,189 4,019,537 1,110,864 258,552 108, 698 743,614 2,908,673 2,266,325 642,348 249, 898 3,127, 291 1,466,429 46.9 11. 3,376,028 3,966,687 1,103,751 258,552 108, 897 736,302 2,862, 936 2,272,277 590,659 ' 263, 823 3,112, 205 1,479,894 47.6 18. 3,375,826 3,802,636 1,161,784 261,227 113, 987 786,570 2,640,852 2,214,042 426,810 271,016 3,104, 810 1,534,739 49.4 3.396.168 3.938.572 1.150.175 259.226 113.081 777,868 2.788,397 2,245,993 542,404 279,450 3,116,718 1,505,827 48.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 2 3,419,457 4,031,234 1,146,944 259,226 110,637 777,081 2,884,290 2,272,513 611,777 250,643 3,168,814 1,494,902 47.2 9 3,454,488 4,000,694 1,145,102 259,226 116,285 769,591 2,855,592 2,309,386 546,206 273,540 3,180,948 1,510,437 47.5 16 3,450,964 3,918,568 1,152,875 259,226 111, 695 781,954 2,765,693 2,298,089 467, 604 315,071 3,135,893 1,528,617 48.7 23 3,434,186 3,897,225 1,160,215 259,226 107,700 793,289 2,737,010 2,273,971 463,039 315,981 3,118,205 1,544,036 49.5 30 3,425,788 3,930,793 1,153,712 259,226 111,633 782, 853 2,777,081 2,272,076 505,005 305,650 3,120,138 1,534,604 49.2 Aug. 6 3,438,500 3,968,829 1,150,343 259,226 117,784 773,333 2,818,486 2,288,157 530,329 296,639 3,141, 861 1,537,273 48.9 13 3,450,969 3,970,513 1,164,562 260,226 117,943 786,393 2,805,951 2,286,407 519,544 281,788 3,169,181 1,540,528 48.6 20 3,462,875 4,024,752 1,164,264 260,226 118,254 785,784 2,860,488 2,298,611 561,877 288,150 3,174,725 1,526,026 48.1 27 3,471,731 4,048,126 1,154,684 260,226 114,531 779,927 2,893,442 2,317,047 576,395 268,094 3,203,637 1,526,576 47.7 Sept. 3 3,501,897 4,094,622 1,132,219 274,225 112,797 745,197 2,962,403 2,369,678 592,725 258,627 3.243,270 1,510,676 46.6 10 3,549,041 4,046,711 1.147,239 274.225 117,269 755,745 2,899,472 2,401,802 497,670 253,856 3,295,185 1,543,451 46.8 17 3,581,625 3,970,603 1,237,942 279.226 115,600 843,116 2,732,661 2,343,683 388,978 291,944 3,289,681 1,580,745 48.1 24 3,586,497 4,144,511 1,211,619 279,226 113,543 818,850 2,932,892 2,374,878 558,014 306,501 3,279,996 1,571,132 47.9 I Oct. 1 3,603,149 4,101,512 1,180,393 279,225 107,198 793,970 2,921,119 2,422,756 498,363 298,459 3,304,690 1,589,152 48.1 8 3,625,726 4,169,552 1,142,412 279,276 115,081 748,055 3,027,140 2,483,314 543,826 303,603 3,322,123 1,559,705 46.9 15 3,642,707 4,165,650 1,169,038 280,276 108,629 780,133 2,996,612 2,473,669 522,943 289,436 3.353,271 1,561,965 46.6 22 3,663,725 4,174,146 1.203,240 279,776 113,271 810,193 2,970,906 2,460,485 510,421 307,526 3,356,199 1,588,644 47.3 29 3,666,170 4,175,764 1,175,118 277,776 107,222 790,120 3,000,646 2,491,052 509,594 314,867 3,351,303 1,581,943 47.2 I Nov. 5 3,659,448 4,200,892 1,152,346 277,776 119,101 755,469 3,048,546 2,507,102 541,444 305,268 I3,354,180 1,576,505 47.0 12 3,660,033 4,151,952 1,177,689 276,776 118,103 782,810 2,974,263 2,482,344 491,919 331,048 j 3,328,985 1,593,844 47.9 19 3,657,488 4,065,647 1,205,746 276,756 119,624 809,366 2,859,901 2,451,742 408,159 350,053 | 3,307,435 1,608,7G9 48.6 26 3,653,281 4,087,315 1,197,681 276,256 109,357 812,068 2,889,634 2,455,600 434,034 327,743 I3,325,538 1,627,036 48.9 Dec. 3. 3,664,949 4,124,046 1,194,204 267,726 123,884 802,594 2,929,842 2,470,745 459,097 352,910 | 3,312,039 1,614,655 48.8 10. 3,677,562 4,109,167 1,210,563 267,426 116,821 826,316 2,898,604 2,466,999 431,005 365,720 j3,311,842 1,630,602 49.2 17 3,682,755 4,016,391 1,269,725 266,426 118,075 885,224 2,746,666 2,413,030 333,636 338,423 j 3,344,332 1,682,559 50.3 23 3,755,246 4,145,500 1,253,492 266,426 109,356 877, 710 2,892,008 2,501,754 390,254 350,315 3,404,931 1,694,481 49.8 30. 3,738,880 4,169,219 1,276,214 264,926 118,596 892,692 2,893,005 2,462,666 430,339 394,194 3,344,686 1,687,696 50.5 CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 4.—Federal Reserve notes of each denomination printed, shipped to Federal Reserve Agents and United States subtreasuries since organization oj banks, and on hand in Washington on Dec. SI, 1920. [In thousands of dollars.] PRINTED. Federal Reserve Bank. Fives. Tens. Twenties. Fifties. d H re u d n s - . d h F r u e iv n d e - s. s T a h n o d u s - . s t a F h n i o v d u e s - . s t a h T n o e d u n s - . Total. Boston 154,620 302,760 247,440 47,800 34,000 8,800 39,200 14,000 20,000 New York 507,640 835,120 654,160 170,600 244,000 44,800 121,600 26,000 56,000 2,659,920 Philadelphia.. 144,720 217,520 288.800 57,400 46,400 11,600 14,800 10,000 24,000 815,240 Cleveland 106,500 171,680 325,120 134,200 39,600 5,400 6,000 4,000 8,000 800,500 o Richmond 88,900 126,680 146,080 41,800 31,600 11,600 13,200 8,000 8,000 475,860 3 Atlanta 95,500 136,640 180,960 25,600 29,600 6,800 14,800 2,000 4,000 495,900 Chicago 230,040 411,160 525,520 109,600 69,600 15,000 22,400 10,000 8,000 1,401,320 St. Louis 118,200 146,520 147,920 21,800 11,600 5,000 6,000 4,000 8,000 469,040 © Minneapolis... 66,040 74,800 69,360 4,600 6,400 1,600 7,200 230,000 Kansas City... 97,820 91,920 107,280 11,200 12,000 4,000 4,000 328,220 Dallas 59,940 81,960 82,400 9,800 9,600 3,000 6,000 6,000 12,000 270,700 San Francisco. 127,120 134,680 246,560 36,400 50,000 11,000 17,200 12,000 12,000 646,960 Total... 1,797,040 2,731,440 3,021,600 670,800 584,400 128,600 272,400 96,000 160,000 9,462,280 SHIPPED. w o Boston 147,000 285,000 233,600 32,200 32,800 2,800 15,600 4,000 8,000 761,000 New York.... 490,800 809,520 617,360 160,000 209,600 28,000 82,800 6,000 16,000 2,420,080 Philadelphia.. 138,260 202,000 273,920 51,400 36,800 1,600 4,800 708,780 Cleveland 94,620 156,800 300,880 128,800 38,800 3,600 4,400 2,000 4,000 733, 900 Richmond 85,560 113,680 137,440 39,200 24,000 1,600 3,200 2,000 4,000 410,680 Atlanta 87,140 125,280 165,440 20,200 23,600 6,800 8,800 437,260 Chicago 213,820 388,240 495,600 99,000 56,800 7,800 13,200 4,000 | 1,278,460 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

St. Louis 104,840 128,840 130,720 18,400 11,200 1,800 3,200 2,000 4,000 405,000 Minneapolis.. 55,200 63,880 58,640 3,000 5,200 600 1,600 188,120 Kansas City... 88,700 84,080 94,480 9,200 10,400 1,000 1,200 289,060 Dallas 48,180 72,880 70,720 7,200 6,800 800 2,000 208,580 San Francisco. 118,360 128,040 238,720 34,800 49,200 7,000 12,800 6,000 8,000 602,920 Total... 1,672,480 2,558,240 2,817,520 603,400 505,200 63,400 153,600 26,000 44,000 8,443,840 ON HAND. Boston 7,620 17,760 13,840 15,600 1,200 6,000 23,600 10,000 12,000 107,620 New York 16,840 25,600 36,800 10,600 34,400 16,800 38,800 20,000 40,000 239,840 Philadelphia. 6,460 15,520 14,880 6,000 9,600 10,000 10,000 10,000 24,000 106,460 Cleveland 11,880 14,880 24,240 5,400 800 1,800 1,600 2,000 4,000 66,600 Richmond 3,340 13,000 8,640 2,600 7,600 10,000 10,000 6,000 4,000 65,180 Atlanta 8,360 11,360 15,520 5,400 6,000 6,000 2,000 4,000 58,640 Chicago 16,220 22,920 29,920 10,600 12,800 7,200 9,200 6,000 8,000 122,860 St. Louis , 13,360 17,680 17,200 3,400 400 3,200 2,800 2,000 4,000 64,040 Minneapolis.. 10,840 10,920 10,720 1,600 1,200 1,000 5,600 41,880 Kansas City... 9,120 7,840 12,800 2,000 1,600 3,000 2,800 39,160 Dallas 11,760 9,080 11,680 2,600 2,800 2,200 4,000 6,000 12,000 62,120 s3 San Francisco. 8,760 6,640 7,840 1,600 800 4,000 4,400 6,000 4,000 44,040 Total... 124,560 173,200 204,080 67,400 79,200 65,200 118,800 70,000 116,000 1,018,440 CO RECAPITULATION. Total minted 1,797,040 2,731,440 3,021,600 670,800 584,400 128,600 272,400 96,000 160,000 9,462,280 Total shipped 1,672,480 2,558,240 2,817,520 603,400 505,200 63,400 153,600 26,000 44,000 8,443,840 Total on hand 124,560 173,200 204,080 67,400 79,200 65,200 118,800 70,000 116,000 1,018,440 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

"So. 5.—Federal Reserve notes of each denomination issued by Federal Reserve Agents to Federal Reserve Banks, and amounts retired by Federal Reserve Agents since organization of banks, also amounts outstanding Dec. 31,1920. [In thousands of dollars.] ISSUED. Federal Reserve Bank. Fives. Tens. Twenties. Fifties. d H re u d n s - . d h F r u e iv n d e - s. s T a h n o d u s - . s t F a h n i o v d u e s - . s t a h T n o e d u n s - . Total. d Boston 135,007 267,006 201,008 28, 27,602 15,000 900 2,000 677,925 New York... 477,890 777,608 604,198 154, 197,614 72,800 2,000 8,000 2,317,113 Philadelphia. 130,183 195,815 276,860 45, 29,550 3,600 682,098 Cleveland 93,185 155,850 300,760 126, 35,450 2,600 400 600 717,445 Kichmond 111,184 155,147 189,740 52, 34,222 4,750 550 1,170 549,932 S Atlanta 119,283 167,383 227,795 23, 30,047 13,850 590,967 Chicago 206,110 364,500 462,801 78, 40,400 11,200 4,000 1,173,611 3 St. Louis 108,533 134,423 140,672 19, 12,400 2,240 300 450 419,368 Minneapolis.. 58,067 71,890 63,235 2. 4,500 1,705 202,692 Kansas City... 86,584 85,090 100,354 11, 8,570 800 293,798 Dallas 48,705 88,201 83,929 9, 11,590 1,815 244,115 San Francisco. 120,780 128,480 244,060 32, 48,700 4, 12,500 11,550 17,230 620,100 i Total.... 1,695,511 2,591,393 2,895,412 584,221 480,645 49,972 142,860 19,700 29,450 8,489,164 RETIRED. W O 5 Boston 92,690 161,461 87,459 12,260 11,225 432 9,289 515 1,040 376,371 New York.... 332,350 489,306 300,419 66,656 83,464 1,868 6,251 15 430 1,280,759 Philadelphia.. 87,445 128,449 151, 892 13,324 8,990 81 618 390,799 Cleveland 56,861 90,832 139,761 43,024 8,123 57 89 5 338,752 Richmond 81,417 114,292 130,939 33,086 23,418 632 3,504 500 1,110 388,898 Atlanta 88,541 125,088 156,513 13,206 14,395 5,457 8,007 411,207 Chicago 125,436 186,220 191,748 28,216 7,331 167 256 539,374 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

St. Louis 75,798 89,755 81,656 9,594 6,105 192 517 150 210 263,977 Minneap olis. 41,269 46,733 30,309 1,105 1,359 11 520 121,306 Kansas City 60,010 53,730 52,389 7,520 1,990 19 15 175,673 Dallas 32,962 62,214 51,427 4,979 6,818 41 920 159,361 San Francisco 75,360 n,808 112,177 10,212 13,146 857 2,611 7,555 13,230 306,956 Total 1,150,139 1,619,888 1,486,689 243,182 186,364 9,814 32,597 8,740 16,020 4,753,433 OUTSTANDING. Boston 42,317 105,545 113,549 15,742 16,377 5,711 385 960 301,554 New York 145,540 303,779 87,347 114,150 21,132 66,549 1,985 7,570 1,036,354 Philadelphia.. 42,738 67,366 124,968 31,966 20,560 719 2,982 291,299 Cleveland 36,324 65,018 160,999 83,776 27,327 1,743 2,511 395 600 378,693 Richmond 29,767 40,855 58,801 19,201 10,804 250 1,246 50 60 161,034 Atlanta 30,742 42,295 71,282 10,483 15,652 3,463 5,843 179,760 Chicago 80,674 178,280 271,053 50,384 33,069 5,833 10,944 4,000 634,237 St. Louis 32,735 44,668 59,016 9,656 6,295 908 1,723 150 240 155,391 Minneapolis 16,798 25,157 32,926 1,850 3,141 329 1,185 81,386 Kansas City.... 26,574 31,360 47,965 4,180 6,580 681 785 118,125 Dallas 15,743 25,987 32,502 4,466 4,772 389 895 84,754 San Francisco.. 45,420 56,672 131,883 21,988 35,554 3,743 9,889 3,995 4,000 313,144 Total 545,372 971,505 1,408,723 341,039 294,281 40,158 110,263 10,960 13,430 3,735,731 RECAPITULATION. Total issued. 1,695,511 2,591,393 2,895,412 584,221 480,645 49,972 142,860 19,700 29,450 8,489,164 Total retired 1,150,139 1,619,888 1,486,689 243,182 186,364 9,814 32,597 8,740 16,020 4,753,433 Total outstanding 545,372 971,505 1,408,723 341,039 294,281 40,158 110,263 10,960 13,430 3,735,731 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 6.—Federal Reserve notes issued and redeemed by each Federal Reserve Agent, by months during 1920. [In thousands of dollars.] 00 Total Total. Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. outstanding at Month. beginning ofeach Re- Re- Re- Re- Re- Remonth in Issued. deemed. Issued. deemed. Issued. deemed. Issued. deemed. Issued. deemed. Issued. deemed. Issued. deemed. 1920. d > January 3,295,789 100,359 270,263 8,160 16,913 16,480 57,858 9,700 25,423 9,940 24,729 2,479 19,400 8,045 21,805 tr1 February... 3,125,885 258,110 128,782 27,820 8,792 47,620 23,734 34,320 10,826 36,700 10,276 9,910 10,436 15,330 9,933 March 3,255,213 168,740 124,888 21,600 10,040 32,100 13,673 11,020 8,593 21,560 10,842 8,070 11,851 15,090 16,312 April 3,299,065 165,415 138,292 11,100 12,594 25,280 21,977 8,500 9,763 27,650 13,333 14,500 14,473 16,350 14,227 O W May 3,326,188 146,710 115,110 18,200 10,784 34,160 15,126 8,200 7,254 12,630 10,124 6,860 13,284 10,770 14,467 H June 3,357,788 179,290 131,201 24,600 13,862 36,760 16,700 11,080 9,786 17,500 12,427 16,360 11,294 11,330 15,664 July 3,405,877 158,525 141,102 15,300 12,845 26,560 28,429 14,500 8,882 16,450 12,866 15,800 13,467 10,010 11,316 August 3,423,300 195,835 133,870 23,300 11,242 12,800 22,203 26,200 8,956 27,885 10,893 22,815 14,498 16,615 13,662 September.. 3,485,265 220,505 111,861 28,300 12,097 19,280 16,965 12,200 9,330 27,865 8,452 20,500 13,405 16,635 12,190 October 3,593,909 195,825 126,217 6,000 17,593 31,260 19,303 9,600 10,127 12,700 10,685 18,100 13,549 43,075 10,313 November.. 3,663,517 155,875 155,862 17,400 22,460 35,000 17,746 13,800 10,442 12,300 12,677 13,700 14,222 13,560 20,352 December.. 3,663,530 270,065 197,864 23,900 29,622 55,780 22,728 18,300 14,635 25,820 16,805 29,910 19,796 19,225 16,142 Total, 1920.. 2,215,254 1,775,312 225,680 178,844 373,080 276,442 177,420 134,017 249,000 154,109 179,004 169,675 196,035 176,383 1919.. 2,482,515 2,046,570 225,500 139,768 753,120 632,420 195,660 189,635 163,565 146,283 162,777 162,070 183,598 147,110 W Outstanding Jan. 1,1921.. 3,735,731 301,554 1,036,354 291,299 378,693 161,034 179,760 O Jan. 1,1920.. 3,295,789 254,718 939,716 247,896 283,802 151,705 160,108 Jan. 1,1919.. 2,859,844 168,986 819,016 241,871 266,520 150,998 123,620 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 6.—Federal Reserve notes issued and redeemed by each Federal Reserve Agent, by months, during 1920—Continued. [In thousands of dollars.] 01 Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. to Month. Issued. dee R m e- ed. Issued. dee R m e- ed. Issued. dee R m e- ed. Issued. dee R m e- ed. Issued. dee R m e- ed. Issued. dee R m e- ed. January 23,600 47,246 3,650 15,211 1,360 6,318 3,730 8,028 3,255 6,365 9,960 20,967 February 53,120 22,769 11,660 8,947 3,200 3,298 7,160 5,699 7,710 2,964 3,560 11,108 March 27,670 20,579 7,020 9,643 3,400 3,581 4,610 5,114 5,520 4,066 11,080 10,594 April 33,280 15,804 6,540 10,365 2,875 3,563 3,100 5,982 6,580 4,829 9,660 11,382 May 26,720 13,777 6,260 9,436 1,600 3,031 2,860 4,551 7,690 5,511 10,760 7,765 H June 24,500 18,351 8,060 9,896 1,200 3,422 5,170 4,755 5,500 5,424 17,230 9,620 July 20,280 14,619 9,180 8,842 3,130 4,265 7,490 5,287 2,865 5,920 16,960 14,364 August 21,620 16,378 13,500 9,856 3,420 3,617 9,260 5,170 5,760 5,120 12,660 12,275 September 33,280 10,957 11,320 7,476 8,135 2,416 8,060 4,279 13,050 3,798 21,880 10,496 October 26,540 12,983 12,080 9,056 4,435 3,310 8,810 4,625 7,305 4,658 15,920 10,015 November 17,720 20,475 7,580 8,006 2,595 3,311 2,670 5,804 170 7,460 19,380 12,907 tei December 37,000 32,614 9,620 9,064 4,100 6,375 9,650 5,706 3,840 7,020 32,920 17,357 Total, 1920 345,330 246,552 106,470 115,798 39,450 46,507 72,570 65,000 69,245 63,135 181,970 148,850 1919 324,320 239,799 134,025 98,426 39,990 50,272 57,900 67,662 55,730 37,581 186,330 135,544 Outstanding Jan. 1, 1921 634,237 155,391 81,386 118,125 84,754 313,144 Jan. 1, 1920 535,459 164,719 88,443 110,555 78,644 280,024 Jan. 1, 1919 450938 129,120 98,725 120,317 60,495 229,238 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 7.—Mutilated Federal Reserve notes of each denomination received, and destroyed by the Comptroller of the Currency from organization of banks to to Dec. SI, 1920. o [In thousands of dollars.] Federal Reserve Bank. Fives. Tens. Twenties. Fifties. d H re u d n s - . d h F r u e iv n d e - s. s T a h n o d u s - . s t F a h n i o v d u e s - . s t a h T n o e d u n s - . Total. Boston 88,258 152,645 78,494 8,083 7,250 135 2,794 15 40 337,714 New York 322,290 483,274 289,585 62,651 55,468 1,871 6,272 15 430 1,221,856 Philadelphia 83,301 121,290 136,948 13,237 8,643 81 618 364,118 Cleveland ... ... .... 55,081 85,405 133,250 38,078 5,472 58 90 5 317,439 I Richmond... 54,466 70,917 75,205 16,948 6,393 33 256 10 224,228 o Atlanta 47,655 63,034 62,555 3,250 1,938 7 63 178,502 Chicago 121,319 179,156 182,146 27,873 7,290 167 258 518,209 St. Louis 68,083 80,216 68,833 5,729 2,105 91 177 m 225,244 Minneapolis. 35,872 36,620 22,533 717 851 6 25 i 96,624 Kansas City 56,085 46,962 40,822 1,576 1,502 19 15 146,981 Dallas 26,906 37,028 30,637 2,068 1,182 21 186 98,028 San Francisco 70,716 67,836 100,424 6,797 6,837 58 111 5 252,784 Total received . 1,030,032 1,424,383 1,221,432 187,007 104,931 2,547 10,865 40 490 3,981,727 Total destroyed. 1,021,770 1,413,186 1,211,867 184,789 103,451 2,516 10,748 40 480 3,948,847 Balance on hand. 8,262 11,197 9,565 2,218 1,480 31 117 10 32,880 w o NOTE.—During 1920 burned, badly mutilated, and fractional parts of Federal Reserve notes, amounting to 136,815, have been identified and valued and the bank of issue Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No, 8.—Federal Reserve notes of each denomination issued and redeemed by Federal Reserve Agents during 1920 and 1919, and amounts outstanding Dec. 31, 1920, 1919, 1918, and 1917. [In thousands of dollars. 1920 1919 Outstanding Dec. 31. Denomination. Issued. Redeemed. Issued. Redeemed. 1920 1919 1918 1917 $5 431,450 401,856 527,665 452,728 545,372 515,778 440,841 220,036 $10.. .... 568,800 566,580 807,561 708,838 971,505 969,285 870,562 467,945 $20.. . . . . 779,060 590,996 796,030 690,313 1,408,723 1,220,659 1,114,942 461,837 $50 184,240 101,432 155,588 107,802 341,039 258,231 210,445 9L532 $100 120,755 61,606 92,639 72,561 294,281 235,132 215,054 109,274 $500 27,214 8,211 22,758 1,603 40,158 21,155 $1 000 78,905 26,976 55,955 5,621 110,263 58,334 8,000 $5 000 10,700 6,335 9,000 2,405 10,960 6,595 $10,000 14,130 11,320 15,320 4,700 13,430 10,620 Total 2,215,254 1,775,312 2,482,516 2,046,571 3,735,731 3,295,789 2,859,844 1,350,624 o No. 9,—Federal Reserve Agents' statements of Federal Reserve notes for 1920. [In thousands of dollars.] RECEIVED BY FEDERAL RESERVE AGENTS FROM COMPTROLLER OF THE CURRENCY. Federal Reserve agent at— Total. Fives. Tens. Twenties. Fifties. Hundreds. Five Thousands. Five Ten hundreds. thousands. thousands. Boston 284,700 49,500 86,000 105,600 13,200 14,800 400 9,200 2,000 4,000 New York . . ... 419,080 67,600 122,960 109,920 37,000 32,000 9,200 36,400 4,000 Philadelphia 169,800 41,560 41,720 59,520 17,200 6,800 600 2,400 Cleveland 243,900 34,260 48,520 97,920 46,200 15,200 600 1,200 R ichmocd 104,820 27,500 27,640 33,680 10,800 4,400 800 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 9.—Federal Reserve Agents1 statements of Federal Reserve notes for 1920—Continued. to [I n thousands of dollars.] RECEIVED BY FEDERAL RESERVE AGENTS FROM COMPTROLLER OF THE CURRENCY—Continued. Federal Reserve agent at— Total. Fives. Tens. Twenties. Fifties. Hundreds. Five Thousands. Five Ten hundreds. thousands. thousands. Atlanta 120,680 22,840 22,560 44,080 7,400 9,200 6,600 8,000 Chicago 443,740 63,900 115,960 173,280 45,800 30,000 5,600 7,200 2,000 St. Louis 105,400 33,960 32,640 29,600 4,400 2,800 800 1,200 Minneapolis 36,040 11,320 8,480 13,440 600 1,600 200 400 Kansas City 66,240 21,120 16,640 25,280 800 2,000 400 Dallas 53,260 10,500 21,960 16,000 1,200 2,000 400 1,200 o San Francisco. . . 193,000 40,920 37,120 66,160 13,200 15,600 4,800 7,200 4,000 4,000 Total . . 2,240,660 424,980 582,200 774,480 197,800 136,400 29,600 75,200 8,000 12,000 RETURNED BY FEDERAL RESERVE AGENTS TO THE COMPTROLLER OF THE CURRENCY FOR DESTRUCTION. Boston 144,364 33,391 63,663 36,991 4,001 3,407 122 2,734 40 New York 276,442 61,215 99,256 68,241 22,419 19,499 1,519 3,898 380 Philadelphia.. 122,157 28,524 38,828 44,242 5,721 4,201 77 564 Cleveland 143,409 25,478 37,448 58,997 18,595 2,764 52 70 Richmond 94,300 21,955 29,419 32,125 7,463 3,100 26 202 10 Atlanta 85,493 21,292 29,052 32,168 1,873 1,039 7 62 Chicago 231,442 53,604 73,905 84,221 15,282 4,060 151 219 St. Louis 112,448 35,371 37,611 34,864 3,131 1,201 89 171 10 Minneapolis 40,767 14,116 14,960 10,889 342 422 11 27 Kansas City... 60,640 20,334 19,885 18,858 725 16 14 Dallas 49,311 12,009 18,289 16,553 1,373 20 185 San Francisco. 124,490 34,066 32,921 50,337 3,519 3,493 54 100 Total.... 1,485,263 361,355 495,237 488,486 84,444 44,876 2,144 8,246 35 440 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ISSUED BY FEDERAL RESERVE AGENTS TO FEDERAL RESERVE BANKS. Boston 225,680 41,500 76,760 78,120 9,000 8,400 700 9,700 500 1,000 New York 373,080 61,600 88,960 105,920 37,000 32,000 9,200 36,400 2,000 Philadelphia... 177,420 42,780 44,380 66,460 17,200 4,800 200 1,600 Cleveland 249,000 34,540 49,940 96,720 49,000 15,700 1,000 1,600 200 300 Richmond 179,004 40,860 46,375 60,770 18,630 9,940 179 2,250 Atlanta 196,035 35,530 39,700 74,190 9,480 15,800 8,710 12,625 Chicago , 345,330 56,070 93,740 140,720 27,800 16,000 3,800 5,200 2,000 St. Louis 106,470 32,560 34,560 31,400 4,150 2,100 600 900 100 100 Minneapolis 39,450 10,685 13,095 13,310 565 980 110 705 Kansas City... 72,570 21,680 18,760 27,480 1,850 2,100 400 300 Dallas 69,245 14,125 28,210 21,170 1,565 2,535 215 1,425 San Francisco. 181,970 39,520 34,320 62,800 8,000 10,400 2,100 6,200 7,900 10,730 Total.. 2,215,254 431,450 568,800 779,060 184,240 120,755 27,214 78,905 10,700 14,130 RETURNED TO FEDERAL RESERVE AGENTS BY OR FOR THE ACCOUNT OF FEDERAL RESERVE BANKS. Boston 178,844 37,891 72,663 46,071 6,001 5,007 422 9,234 515 1,040 New York 276,442 61,215 99,257 68,241 22,419 19,499 1,518 3,898 15 380 Philadelphia.. 134,017 31,584 42,528 49,342 5,721 4,201 77 564 Cleveland 154,109 26,859 40,108 62,357 20,795 3,863 52 70 Richmond 169,675 35,045 46,864 58,715 16,463 10,300 26 2,202 60 Atlanta 176,383 33,992 48,143 72,128 4,123 5,584 5,256 7,157 Chicago 246,552 56,454 80,086 90,301 15,282 4,060 150 219 St. Louis 115,798 35,851 38,531 35,964 3,531 1,301 89 371 50 110 Minneapolis... 46,507 14,711 17,255 12,939 462 612 11 517 Kansas City... 65,000 20,694 21,726 20,978 724 848 16 14 Dallas 63,135 12,794 25,898 20,743 1,592 1,238 40 830 San Francisco. 148,850 34,766 33,521 53,217 4,319 5,093 554 1,900 5,750 9,730 Total.... 1,775,312 401,856 566,580 590,996 101,432 61,606 8,211 26,976 6,335 11,320 to GO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 9.—Federal Reserve Agents1 statements of Federal Reserve notes for 1920—Continued. to [In thousands of dollars.] SUMMARY. Federal Reserve notes. Total. Fives. Tens. Twenties. Fifties. Hundreds. hu F n i d ve reds. Thousands. thou F s iv a e nds. thou T s e a n nds. Received from Comptroller 2,240,660 424,980 582,200 774,480 197,800 136,400 29,600 75,200 8,000 12,000 Returned to Comptroller 1,485,263 361,355 495,237 488,486 84,444 44,876 2,144 8,246 35 440 Excess receipts 755,397 63,625 86,963 285,994 113,356 91,524 27,456 66,954 7,965 11,560 Issued to banks 2,215,254 431,450 568,800 779,060 184,240 120,755 27,214 78,905 10,700 14,130 g Returned by banks 1,775,312 401,856 566,580 590,996 101,432 61,606 8,211 26,976 6,335 11,320 Excess issues 439,942 29,594 2,220 188,064 82,808 59,149 19,003 51,929 4,365 2,810 Outstanding at beginning of year- - - r - T T , 3,295,789 515,778 969,285 1,220,659 258,231 235,132 21,155 58,334 6,595 10,620 Outstanding at end of year 3,735,731 545,372 971,505 1,408,723 341,039 294,281 40,158 110,263 10,960 13,430 m Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No, 10.—Federal Reserve Agents1 accounts at close of business, Dec. 31, 1920, [In thousands of dollars.] San Total. Boston. New York. 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. St. Louis. M ap i o n l n is e . - "K C a it n y s . as Dallas. F ci r s a c n o - . RESOURCES. Federal Reserve notes on hand 638,189 122,180 162,000 25,580 31,080 25,579 60,450 123,160 23,780 9,890 3,820 14,130 36,540 Federal Reserve notes outstanding (issued to bank—net) 3,735,731 301,554 1,036,354 291,299 378,693 161,034 179,760 634,237 155,391 81,386 118,125 84,754 313,144 Collateral security for Federal Reserve notes outstanding: Gold and gold certificates 264,926 5,600 209,608 22,775 3,500 6,060 13,052 4,331 Gold redemption fund 116,257 19,147 9,968 17,402 19,860 2,699 3,210 10,018 3,746 1,653 3,409 5,919 19,226 Gold settlement fund—F. R. Board 896,692 110,000 35,000 121,389 135,000 51,000 54,000 188,144 39,531 11,200 37,360 14,234 99,834 Eligible paper— Amount required 2,457,856 166,807 781,778 152,508 201,058 107,335 119,050 436,075 106,054 55,481 77,356 60,270 194,084 Excess amount held 397,124 27,239 171,388 9,517 25,738 11,600 14,849 64,834 10,026 10,783 34,891 10,673 5,586 Total 8,506,775 752,527 2,406,096 617,695 814,204 359,247 434,819 1,456,468 344,588 183,445 274,961 194,311 668,414 LIABILITIES. Federal Reserve notes received from Comptroller of the Currency—net amount (liability to Comptroller).. 4,373,920 423,734 1,198,354 316,879 409,773 186,613 240,210 757,397 179,171 91,276 121,945 98,884 349,684 Collateral received from Federal Reserve Bank (liability to bank): Gold 1,277,875 134,747 254,576 138,791 177,635 53,699 60,710 198,162 49,337 25,905 40,769 24,484 119,060 Eligible paper 2,854,980 194,046 953,166 162,025 226,796 118,935 133,899 500,909 116,080 66,264 112,247 70,943 199,670 Total 8,506,775 752,527 2,400,096 617,695 814,204 359,247 434,819 1,456,468 344,588 183,445 274,961 194,311 668,414 to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 11.—Interdistrict movement of Federal Reserve notes during 1920. to [In thousands of dollars.] Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Federal Reserve Bank from which received or to which returned. Re- Re- Re- Re- Re- Re- Re- Re- Re- Re- Re- Received. turned. ceived. turned. ceived. turned. ceived. turned. ceived. turned. ceived. turned. Boston 59,214 72,684 6,893 6,453 4,026 2,298 3,484 3,690 2,925 2,220 New York 72,012 59,550 71,720 63,405 54,278 20,088 29,574 16,768 19,780 14,005 Philadelphia - - . 6,208 7,049 56,467 77,548 14,117 11,229 11,355 12,487 4,152 3,031 Cleveland - . . . .. 2,777 3,996 23,655 54,227 14,319 14,623 8,007 8,818 3,946 6,050 Richmond - • • ^ 3,741 3,474 16,953 29,436 12,144 11,809 8,946 6,340 13,037 8,184 Atlanta 2,313 2,944 14,149 19,925 3,218 4,159 6,271 3,330 8,621 12,847 Chicago... .... 5,581 6,609 28,409 58,505 6,331 7,433 25,079 19,573 4,333 6,387 6,408 8,280 St. Louis 1,478 1,066 8,609 7,963 2,008 1,551 9,269 2,468 2,298 2,161 9,420 12,320 Minneapolis 505 807 2,598 5,954 501 639 1,211 1,160 348 644 479 759 Kansas City . . . . .. 803 1,126 4,963 7,046 1,010 1,388 2,377 1,873 998 2,444 1,843 1,870 Dallas . . .. 597 1,466 4,826 7,408 903 1,527 1,505 1,522 825 3,052 4,890 5,401 San Francisco 2,277 1,497 12,048 17,908 2,162 1,455 3,487 1,151 1,610 696 2,835 1,217 Total: 1920 98,292 89,584 231,891 358,604 121,209 114,442 130,566 71,032 71,453 69,994 69,715 63,337 1919 62,719 90,291 235,408 282,083 78,300 94,525 96,675 64,564 70,806 72,911 58,397 54,621 1918 21,660 37,932 118,050 118,629 39,531 62,355 40,366 21,249 31,114 26,603 21,108 20,439 1917 . . . 4,279 12,013 29,997 24,800 8,067 14,961 5,176 2,534 6,450 2,080 6,211 4,650 Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Total. Federal Reserve Bank from which received or to which returned. Re- Re- Re- Re- Re- Re- Re- Re- Re- Re- Re- Re- Re- Received. turned. ceived. turned. ceived. turned. ceived. turned. ceived. turned. ceived. turned. ceived. turned. Boston 6,631 5,571 1,070 1,473 805 490 1,162 796 1,467 589 1,579 2,460 89,256 98,724 New York 58,740 28,264 8,004 8,641 5,954 2,605 7,040 4,940 7,267 4,424 17,799 12,639 352,168 235,329 Philadelphia 7,164 6,529 1,377 2,168 634 504 1,392 1,021 1,627 739 1,338 2,321 105,831 124,626 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Cleveland 21,777 25,263 3,092 9,380 1,466 1,222 2,390 2,407 1,696 1,393 1,306 3,616 84,431 130,995 Richmond 6,530 4,293 2,229 2,276 648 347 2,441 877 3,061 769 712 1,637 70,442 69,442 Atlanta 8,976 6,363 12,207 9,451 752 488 1,947 1,873 5,290 4,671 1,247 2,872 64,991 68,923 Chicago 14,977 37,721 21,853 16,397 12,458 15,043 3,847 4,431 10,341 14,534 139,617 194,913 St. Louis 37,458 14,926 1,899 939 11,463 8,204 8,273 4,559 2,878 2,879 95,053 59,036 Minneapolis 16,411 21,833 933 1,907 2,362 3,206 404 591 3,849 5,001 29,601 42,501 Kansas City.... 14,836 12,367 8,109 11,355 3,191 2,396 6,974 6,007 5,933 7,282 51,037 55,154 Dallas 4,760 3,832 4,762 8,418 634 439 6,741 7,101 5,645 4,351 36,088 44,517 San Francisco.. 14,288 9,989 2,834 2,880 4,949 3,447 7,247 5,997 4,299 4,610 58,036 50,847 Total: 1920. 197,571 139,230 59,594 95,670 42,785 29,274 56,643 51,465 44,205 32,783 52,627 59,592 1,176,551 1,175,007 1919. 149,978 129,606 50,470 75,559 39,607 29,704 51,607 39,802 24,765 18,174 42,391 35,267 961.123 987,107 1918. 49,708 51,456 15,020 37,558 14,2% 9,115 33,604 6,321 11,084 11,855 15,583 5,095 411.124 408,607 1917. 5,129 15,268 3,345 7,980 5,538 1,351 7,783 1,119 5,765 3,507 4,356 1,843 92,096 92,106 ft in w o ui Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK NOTES. 00 No. 12.—Federal Reserve Bank notes printed, issued, and redeemed by the Comptroller of the Currency since organization of banks, and amounts outstanding and on hand on Dec. SI, 1920. [In thousands of dollars.] PRINTED. Federal Reserve Bank. Ones. Twos. Fives. Tens. Twenties. Fifties. Total. d Boston 34,040 18,376 2,200 54,616 New York 91,140 24,840 32,000 149,980 Philadelphia.. 44,308 12,624 8,320 240 65,932 Cleveland 35,544 8,000 11,780 2,000 59,324 Richmond 23,744 5,008 3,500 400 33,052 Atlanta 27,712 3,600 6,640 2,400 2,400 45,072 Chicago 56,464 15,976 16,600 1,600 94,440 St. Louis 22,572 5,688 7,620 480 200 37,560 Minneapolis 12,848 2,944 5,460 23,932 Kansas City... 18,092 4,136 14,360 3,600 45,228 Dallas 15,872 3,080 4,140 2,000 27,492 San Francisco. 17,892 4,768 7,660 1,360 33,640 Total. 400,228 109,040 120,280 24,040 14,080 2,600 670,268 w ISSUED. o Boston. .. . . 33,796 17,624 2,180 53,600 New York . 90,700 21,216 13,840 1,440 127,196 Philadelphia 44,224 12,032 7,000 63,256 Cleveland 34,028 7,680 10,640 52,348 Richmond 23,300 4,800 28,100 Atlanta 27,372 3,600 4,740 360 160 36,232 Chicago 56,184 15,480 16,600 3,800 1,600 93,661 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

St. Louis 20,640 5,136 7,200 1,000 480 200 34,656 Mrnnflapolip . , 12,464 2,312 3,320 18,096 Kansas City 17,156 3,952 14,360 5,040 3,600 44,108 Dallas 14,256 2,040 2,140 2,400 2,000 22,836 San Francisco 17,892 4,768 4,280 26,940 Total 392,012 100,640 86,300 14,040 7,840 200 601,032 ON HAND. Boston... 244 752 20 1 016 New York... .. . 440 3,624 18,160 560 22,784 Philadelphia 84 592 1,320 440 240 2,676 Cleveland . . . . .. 1,516 320 1,140 2,000 2,000 6,976 Richmond 444 208 3,500 400 400 4,952 Atlanta... . 340 1 900 1,960 2,240 2,400 8,840 w Chicago 280 496 776 St. Louis 1,932 552 420 2,904 % Minneapolis.. 384 632 2,140 2,680 5,836 Kansas City . .. . 936 184 1,120 Dallas... 1,616 1,040 2,000 i 4,656 San Francisco 3,380 1,960 1,360 6,700 Total 8,216 8,400 33,980 10,000 6,240 2.400 69,236 REDEEMED. Boston 19,867 10,486 1,941 32,294 New York 45,356 11,891 12,699 1,203 71,149 Philadelphia 26,651 6,404 6,407 39,462 Cleveland... 18,952 4,531 5,502 28,985 Richmond 13,415 2,631 16,046 Atlanta 15,063 2,094 2,547 230 60 19,994 Chicago. 32,752 8,812 7,682 2,227 745 52; 218 to St. Louis :... '. 15,588 3,362 4,517 838 194, 7 24,506 CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 12.—Federal Reserve Bank notes printed, issued, andredeemed by the Comptroller of the Currency since organization of banks, and amounts outstanding CO and on hand on Bee. 31, 1920—Continued. o [In thousands of dollars.] REDEEMED—Continued. Federal Reserve Bank. Ones. Twos. Fives. Tens. Twenties. Fifties Total. Minneapolis,-. T,, . , , 7,468 1,515 990 9,973 Kansas City 10,286 1,902 9,442 4,386 2,586 28,602 Dallas. 7,998 1,322 1,494 1,627 1,273 13,714 San Francisco 8,629 2,298 3,695 14,622 g Total. . 222,025 57,248 56,916 10,511 4,858 7 351,565 o OUTSTANDING. Boston 13,929 7,138 239 21,306 New York 45,344 9,325 1,141 237 56,047 Philadelphia.. 17,573 5,628 593 23,794 Cleveland 15,076 3,149 5,138 23,363 Richmond 9,885 2,169 12,054 Atlanta 12,309 1,506 2,193 130 100 16,238 Chicago 23,432 6,668 8,918 1,573 855 41,446 St. Louis 5,052 1,774 2,683 162 286 193 10,150 w Minneapolis... 4,996 797 2,330 8,123 Kansas City... 6,870 2,050 4,918 654 1,014 15,506 o Dallas 6,258 718 646 773 727 9,122 San Francisco. 9,263 2,470 585 12,318 Total.... 169,987 43,392 29,384 3,529 2,982 193 249,467 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECAPITULATION. Total printed 400,228 109,040 120,280 24,040 14,080 2,600 670,268 Total on hand Dec 31 1920 8,216 8,400 33,980 10,000 6,240 2,400 69,236 Totalissued 392,012 100,640 86,300 14,040 7,840 200 601,032 Total redeemed 222,025 57,248 56,916 10,511 4,858 7 351,565 Total outstanding Dec. 31, 1920. . . . , 169,987 43,392 29,384 3,529 2,982 193 249,467 No. 13.—Federal Reserve Bank notes issued to Federal Reserve Banks under the provisions of the "Pittman Act" to Dec. 31,1920, [In thousands of dollars.] Federal Reserve Bank. Ones. Twos. Fives. Tens. Total. Federal Reserve Bank. Ones. Twos. Fives. Tens. Total. Boston. . 12,788 6,728 1,920 21,436 St. Louis 9,056 2,512 4,500 1,000 17,068 I New York . 33,944 13,272 10,620 1,440 59,276 Minneapolis 6,012 1,648 820 8,480 Philadelphia 19,196 4,664 6,420 30,280 Kansas City 6,688 1,792 4,340 12,820 Cleveland 14,296 4,184 5,319 23,799 Dallas 6,432 1,368 500 8,300 Richmond 10,524 1,736 12,260 San Francisco. 8,076 2,304 500 10,880 nta 2 1 7 3 , , 6 3 0 8 8 8 7 1 , , 3 65 4 6 4 3 1 , , 7 62 0 0 0 960 3 1 9 6 , , 6 6 1 6 2 4 Total 168,008 49,208 40,259 3,400 260,875 o NOTE.—In December, 1920, the Federal Reserve Bank of St. Louis deposited $1,500,000 in lawful money to retire a like amount of its circulation. The securities released were transferred and currency issued to banks included in the above as follows: Federal Reserve Bank of Cleveland, $500,000; Federal Reserve Bank of Atlanta, $1,000,000. oo Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENCY RECEIPTS AND PAYMENTS. CO No. 14.—Currency (paper and coin) received from and paid to member and nonmember banks, by months during 1920. to [In thousands of dollars.] Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. Month. Receipts. m P e a n y t - s. Receipts. m P e a n y t - s. Receipts. m P e a n y t - s. Receipts. m P e a n y t - s. Receipts. m P e a n y t - s. m P e a n y t - s. January 54,612 38,496 196,055 il8,442 47,238 33,690 44,351 34,702 21,049 9,649 36,057 16,183 78,772 60,803 February 31,523 50,323 120,604 182,254 29,133 60,277 28,654 54,559 12,055 13,789 23,050 20,201 46,843 80,483 March 47,497 50,773 155,126 179,913 39,990 48,045 44,009 49,094 13,824 15,536 28,071 19,300 72,454 84,662 April 52,936 44,812 158,582 197,173 46,698 46,796 42,047 56,434 16,575 18,450 28,943 24,901 77,540 90,469 o May 52,579 55,069 155,582 169,633 39,590 48,879 44,476 44,997 16,191 16,824 27,604 19,439 78,195 85,765 w June 64,916 .63,583 179,931 175,813 48,536 47,084 54,121 53,220 16,014 19,957 27,214 18,517 88,870 87,358 H July 64,221 60,149 205,987 164,702 51,624 53,279 50,866 52,455 14,754 21,186 27,547 21,780 91,847 89,494 August 61,088 73,509 187,350 155,665 48,801 00,712 43,016 64,376 13,968 23,221 23,736 19,398 74,836 91,567 September 64,130 74,090 206,474 182,272 51,910 57,511 48,419 65,611 13,256 26,902 23,351 24,773 83,192 94,936 October 68,030 55,688 188,844 181,530 53,258 64,210 52,161 60,306 15,048 28,186 27,677 53,031 86,204 89,562 November 62,671 55,530 221,590 172,926 53,670 55,338 54,735 54,778 18,511 23,541 30,726 19,501 89,864 79,215 December 74,776 66,602 260,017 213,422 59,640 67,444 72,193 67,450 23,255 26,738 31,509 31,952 103,067 102,781 Total, 1920 698,979 688,624 2,236,142 2,093,745 570,094 643,265 579,048 657,982 194,500 243,979 335,485 288,976 971,684 1,037,095 1919 505,853 402,341 1,654,157 1,834,471 444,475 389,269 383,296 362,123 169,276 177,321 219,365 175,453 648,102 614,188 o St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Total, 1920. Total, 1919. Month. Receipts. m P e a n y t - s. Receipts. Pay- Receipts. Pay- Receipts. m P e a n y t - s. Receipts. Pay- Receipts. melts. Receipts. m P e a n y t - s. January.. 34,529 22,337 6,431 3,316 16,115 9,199 11,206 7,009 36,250 13,518 582,665 367,344 520,506 195,056 February 26,148 26,988 3,129 5,385 9,984 12,115 6,755 8,883 20,714 18,883 358,592 534,140 279,180 260,334 March — 35,633 24,643 3,843 5,870 13,658 12,235 10,934 10,059 24,788 24,953 489,833 525,083 295,602 312,392 April 36,193 27,121 3,967 5,126 16,167 11,163 11,854 9,372 24,884 38,388 516,386 570,2ft5 364,492 305,264 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

May 33,904 27,359 4,075 5,314 13,252 11,413 12,126 8,618 25,310 30,531 502,884 523,841 412,864 299,258 June 38,340 28,566 4,611 6,184 16,087 12,544 10,914 9,811 27,933 44,271 577,487 566,908 397,900 388,270 July 36,945 32,284 5,177 5,725 14,948 14,275 12,822 9,591 38,471 45,032 615,209 569,952 452,286 413,099 August 35,261 32,753 4,527 6,606 13,190 17,553 12,395 12,567 28,343 50,626 546,511 608,553 362,698 430,352 September 38,137 37,432 4,900 11,355 16,445 17,373 11,724 17,500 30,899 57,917 592,837 667,672 376,763 430,104 October 40,083 40,642 4,845 7,433 17,466 15,046 16,159 13,816 31,454 49,918 601,229 659,368 447,985 491,117 November 42,066 31,586 7,535 7,380 16,792 13,417 21,621 8,294 31,482 57,104 651,263 578,610 368,015 481,922 December 46,188 38,624 11,820 9,301 19,994 19,516 20,872 11,221 58,222 67,678 781,553 722,729 526,434 619,738 Total, 1920 443,427 370,335 64,860 78,995 184,098 165,849 159,382 126,741 378,750 498,819 6,816,449 6,894,405 d 1919 288,738 205,447 57,347 52,826 133,234 103,168 75,788 94,718 225,094 215,581 4,804,725 4,626,906 | Q ii Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

134 ANNUAL. REPORT FEDERAL, RESERVE BOARD. CURREhCr RECEIVED FROM AND PAID TO MEMBER AND NON-MEMBER BANK? 1 BY THE FEDERAL RESERVE BANKS ^ ^^ Receipts WfWAA • •• &cccss of Receipts 1920 j/M. I rEB\ MAR\APR\MAY\lUNfyUlX\AUG. \SCFT\ OCr.\/W.\aZ.\ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 15.—Currency (paper and coin) received from and paid to member and to nonmember banks by each Federal Reserve Bank and branch during 1920. [In thousands of dollars.] Receipts. Payments. Excess. Federal Reserve Bank or branch. From From non- To mem- To nonm b e a m nk b s e . r m b e a m nk b s e . r Total. ber banks. m b e a m nk b s e . r Total. Receipts. Payments. Boston 643,782 55,197 698,979 683,881 4,743 688, 10,355 New York .,935,651 148,768 2,084,419 1,875,270 45,980 1,921, 163,169 2 Buffalo 150,027 1,696 151,723 163,711 8,784 172, 20,772 Q Philadelphia 548,123 21,971 570,094 643,265 643, 73,171 *i Cleveland 169,959 3,181 173,140 205,075 1,177 206, 33,112 W Cincinnati 97,022 1,769 98,791 85,302 1,214 86, 12,275 a Pittsburgh 305,854 1,263 307,117 364,955 259 365, 58,097 gj Richmond 96,798 7,841 104,639 111,122 190 111, 6,673 J]j Baltimore 86,889 2,972 89,861 132,600 67 132, 42,806 W Atlanta 106,363 2,730 109,093 71,561 39,393 110, 1,861 p> Birmingham 37,612 10,279 47,891 36,041 650 36, 11,200 Jacksonville 44,696 784 45,480 33,856 33, 11,624 Nashville 27,449 27,449 21,331 531 21, 5,587 New Orleans 93,529 380 93,909 75,708 517 76, 17,684 , Savannah (agency). 11,663 11,663 9,388 % 2,275 Chicago 657,295 18,636 675,931 699,866 2,014 701, 25,949 Detroit 295,753 295,753 335,215 335, 39,462 St. Louis 273,537 16,569 290,106 224,313 14,744 239, 51,049 Little Rock 20,647 6,784 27,431 22,205 2,336 24, 2,890 Louisville 63,413 1,273 64,686 51,092 843 51, 12,751 Memphis 54,544 6,660 61,204 46,847 7,955 54, 6,402 Minneapolis 64,333 527 64,860 78,616 379 78, 14,135 CO ax Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 15«—Currency {paper and coin) received from and paid to member and to nonmember banks by each Federal Reserve Bank and branch during 1920—Continued. CO [In thousands of dollars.] Receipts. Payments. Excess. Federal Reserve Bank or branch. From From non- To mem- To nonm b e a m nk b s e . r m b e a m nk b s e . r Total. ber banks. m b e a m nk b s e . r Total. Receipts. Payments. % :.;::: I Kansas City 125,205 530 125, Ill, 239 67 111,306 14,429 Denver 32,696 523 33, 23,782 417 24,199 9,020 Oklahoma City 1,557 40 1, 691 691 906 hj Omaha ,.. 23,282 265 23, 29,651 2 29,653 6,106 O Dallas 03,813 2,512 96, 71,382 502 71,884 24,441 H El Paso 20,426 2,381 28, 17,486 2,443 19,929 8,878 Houston 32,457 1,793 34, 32,083 2,845 34,928 678 & San Francisco 177,636 17,120 194, 192,741 111,412 304,153 109,397 feJ Los Angeles... 78,321 2,382 80, 88,153 936 89,089 8,386 S Portland 30,297 132 30, 30,949 284 31,233 Salt Lake City. 13,647 49 13, 16,526 684 17,210 3,514 Seattle 48, 231 2,153 50, 40,548 2,910 43,458 6,926 GO Spokane 8,692 13,324 352 13,676 4,894 Total, 1920.. 6,477,199 339,250 6,816,449 6,639,775 254,630 6,894,405 77,956 1919.. 4,492,379 312,346 4,804,725 4,533,100 93,806 * 4,626,906 177,819 O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONDITION OF FEDERAL RESERVE BANKS. No. 16.—Resources and liabilities of all Federal Reserve Banks combined at close of business on each Friday from Jan. 2 to Dec. SO, 1920. [In thousands of dollars.] Cash reserves. Earning assets. Gold. Bills discounted. United States securities. 3 Date. G t g i o f o i l l c d d a c t a e e n s r d . - G t R F f B l u o e e e o n l m s d d d a e e e r — s r r d v n e a . e t t l - ag fo G w e r n e o i c i t l g h d ie n s. R F ag e e G w d s e o i e n e t l r h d r t v s a . e l d G e f m o u l n p d d t r i . o e- n Total. t n s L e i o e l n e v t t g d c e e a . e s r l r , , Total. w e b S a r y n t r e i c m o o G u n b e r o s l e n i . v d g t - a- All other. m i b n o B a u o r il k g p ls e e h n t t . Bonds. V n i o c t t e o s r . y in c C d a n e t e e r e b t s s i s t f e . o i- d f - Total. a s o 1920. Jan. 2 239,609 363,723 131,320 1,205,596 122,367 2,062,615 58,657 2,121,272 1,484,262 746,925 574,631 26,836 64 349,090 3,181,808 9 220,301 380.263 123 ,322 1,209,508 107,977 2,041,371 60,728 2,102,099 1,352,085 727,670 574,722 26,836 264 302,406 2,983,983 16 212,119 456,260 120,323 1,136,326 118,850 2,043,878 60,403 2,104,281 1,351,454 748,611 575,675 27,036 64 319,684 3,022,524 23 220,347 441,499 117,322 1,126,261 121,221 2,026,650 61,246 2,087,896 1,386,348 767,110 575,789 27,036 64 276,765 3,033,112 30 225,156 439,524 114,321 1,119,426 114,229 2,012,656 61,277 2,073,933 1,457,892 716,465 561,313 27,036 64 276,421 3,039,191 Feb. 6....... 205,393 434,160 114,321 1,116,427 121,259 1,991,560 63,096 2,054,656 1,451,557 751,982 554,750 26,776 63 276,064 3,061,192 13 202,425 424,832 112,822 1,121,757 126,544 1,988,380 64,133 2,052,513 1,469,562 823,873 542,600 26,775 63 290,317 3,153,190 20 200,973 396,138 112,822 1,150,798 109,083 1,969,814 65,626 2,035,440 1,525,203 833,321 531,703 26,775 63 268,610 3,185,675 27 206,877 385,594 112,822 1,145,479 116,064 1,966,836 116,379 2,083,215 1,572,980 . 880,531 531,367 26,775 as 267,511 3,279,232 Mar. 5 180,162 389,332 112,822 1,138,690 116,071 1.937,077 117,553 2,054,C30 1,520,494 888,194 513,854 26,775 68 266,567 3,215,952 12 169,978 391,049 112,781 1,142,576 119,380 1,936,364 120,366 2,056,730 1,515,959 907,487 504,172 26,775 68 267,461 3,221,922 19 159,660 388,271 112,781 1,161,695 112,174 1,934,581 125,745 2,060,326 1,353,509 854,172 463,232 26', 797 68 410,119 3,107,897 26 154,237 363,132 112,781 1,186,829 117,776 1,934,755 122,400 2,057,155 1,441,015 1,008,215 451,879 26,798 68 263,056 3,191,031 Apr. 2 171,585 379,558 112, 781 1,169,137 117,198 1,950,259 130,169 2,080,428 1,400,664 999,849 424,041 26,798 68 345,550 3,196,970 9 183,117 368,724 112,781 1,173,125 119,743 1,957,490 129,816 2,087,306 1,410,069 957,469 422,241 26,798 68 339,919 3,156,564 16 189,229 360,088 112,781 1,170,313 122,883 1,955,294 132,437 2,087,731 1,430,888 980,303 416,784 26,799 68 303, 728 3,158,570 23 185,654 374,380 112,781 1,150,658 126,220 1,949,693 133,875 2,083,568 1,448,804 1,029,378 404,672 26,797 68 267,066 3,176,785 30 174,561 376,003 112,781 1,137,928 135,447 1,936,720 134,045 2;070, 765 1,465,320 1,069,751 407,247 26,797 68 266,649 3,235,832 Co Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 16.—Resources and liabilities of all Federal Reserve Banks combined at close of business on each Friday from Jan. 2 to Dec. , 9, 1920—Continued. CO [In thousands of dollars.] 00 Cash reserves. Earning assets. Gold. Bills discounted. United States securities. Date. G t g i o f o i l l c d d a t c a e e n s r . d - G R t F B f l o u e e e o n l m s d d a d e e r e — r r s d v n a e . e t l t- a f g o G w e r n e o i c t i l h g i d e n s. R F ag G w e e e s d o i e n e t l h r t d r v s a . e l d G e f m o u l n d p d t r i . e o - n Total. t s n L e i e o l n e t v t g d c e e . a e s r , l r , Total. w e b S a r y t r e n i c o o m G u n b r e o s l e i . n v g d - t a- All other. m i b n B o a o u r il k p g l e s e h n t t . Bonds. V n i o c t t e o s r . y in c C d a n e t e e r e b s t s i s t f e o . i- d f - Total. 1920 May 7 172,683 392,751 112,781 1,121,311 142,054 1,941,580 134,507 2,076,087 1,444,175 1,060,447 409,834 26,796 68 273,037 3,214,357 14 171,208 389,149 112,781 1,115,902 150,101 1,939,141 139,252 2,078,393 1,508,104 1,043,186 413,292 26,796 69 279,463 3,270,910 21 169, 735 399,889 112,781 1,098,823 158,489 1,939,717 139,821 2,079,538 1,446,723 1,053,663 417,368 26,796 69 276,761 3,221,380 28 167,135 424,452 111, 530 1,112,040 137,946 1,953,103 139,393 2,092,496 1,447,962 1,071,469 418,600 26,794 69 279,531 3,244,425 June ~i~."~T:64731F~-43*7227- 1,110,864 142,712 1,960,853 138,087 2,098,940 1,433,415 1,130,843 410,688 26,795 69 274,816 3,276,626 11 168,193 431,905 111,531 1,103,751 149,678 1,965,058 137,533 2,102,591 1,440,931 1,082,019 403,896 26,796 69 280,108 3,233,819 18 162,878 400,833 111,531 1,161,784 125,295 1,962,321 138,579 2,100,900 1,231,841 1,064,296 398,591 26,795 69 347,091 3,068,683 25 171,120 402,628 111,531 1,150,175 133,921 1,969,375 139,230 2,108,605 1,277,980 1,153,814 399,185 26,793 69 325,434 3,183,275 July 2 171,176 402,760 111,531 1,146,944 139,285 1,971,696 137,805 2,109,501 1,294,892 1,250,302 390,085 26,792 69 311,379 3,273,519 9 168,929 402,760 111,531 1,145,102 142,994 1,971,316 136,877 2,108,193 1,296,350 1,265,243 372,591 26,793 69 281,942 3,242,988 16 168,767 393,905 111,531 1,152,875 144,343 1,971,421 147,626 2,119,047 1,256,258 1,233,890 356,471 26,791 69 294,182 3,167,661 23.. 180,529 387,345 111,531 1,160,215 143,651 1,983,271 150,741 2,134,012 1,247,371 1,222,536 353,543 26,791 68 287,909 3,138,218 30 174,179 389,389 111,531 1,153,712 148,893 1,977,704 150,936 2,128,640 1,241,017 1,250,613 345,305 26,791 69 298,520 3,162,315 Aug. 6 185,165 381,259 111,531 1,150,343 152,307 1,980,605 151,139 2,131,744 1,285,398 1,264,435 339,390 26,810 69 271,490 3,187,592 13 179,630 389,927 111,531 1,164,562 131, 708 1,977,358 155,527 2,132,885 1,296,981 1,292,025 320,618 26,810 69 277,836 3,214,339 20 183,125 366,892 111,455 1,164,264 140,615 1,966,351 155,486 2,121,837 1,301,609 1,320,$20 320,597 26,809 69 277,158 3,247,062 27 186,139 373,272 111, 455 1,154,684 146,275 1,971,825 156,002 2,127,827 1,314,830 1,352,297 321,965 26,810 69 273,701 3,289,672 Sept. 3 165,070 410,507 111,455 1,132,219 143,059 1,962,310 155,647 2,117,957 1,332,892 1,412,035 313,501 26,806 69 279,633 3,364,936 10 150,990 428,768 111,455 1,147,239 137,774 1,976,226 155,021 2,131,247 1,299,123 1,376,076 316,982 26,807 69 332,426 3,351,483 17 164,529 331,308 111,455 1,237,942 127,893 1,973,127 160,018 2,133,145 1,202,£93 1,306,610 321,605 26,805 69 393,479 3,251,161 24 183,826 341,303 111,455 1,211,619 141,632 1,989,835 161,759 2,151,594 1,220,423 1,484,041 307,624 26,808 69 270,623 3,309,588 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Oct. 1 201,046 362,468 111,455 1,180,393 147,710 2,003,072 162,123 2,165,195 1,183,017 1,526,584 301,510 26,855 69 271,482 3,309,517 8, 216,703 391,974 90,409 1,142,412 154,766 1,996,324 161,944 2,158,2"68 1,217,098 1,578,573 305,690 26,856 69 273,951 3,402,237 55 192,499 381,753 87,021 1,169,038 161,790 1,992,101 162,810 2,154,911 1,192,810 1,581,060 319,520 26,856 69 301,661 3,421,976 22. 161,438 389,069 80,441 1,203,210 160,423 1,994,611 162,659 2,157,270 1,199,139 1,550,143 300,666 26,856 69 280,807 3,357,680 29. 164,849 416,163 74,686 1,175,118 172,504 2,003,320 164,718 2,168,038 1,203,905 1,597,392 298,375 26,868 69 269,434 3,396,043 Nov. 5. 174,702 417,984 77,514 1,152,346 179,127 2,001,673 168,056 2,169,729 1,215,101 1,611,724 299,769 26,865 69 268,047 3,421,575 12 169,814 409,075 77,244 1,177,689 174,856 2,008,678 171,333 2,180,011 1,180,977 1,603,773 287,854 26,863 69 269,310 3,368,846 19 170,266 400,678 74,303 1,205,746 157,117 2,008,110 172,118 2,180,228 1,158,907 1,514,467 275,227 26,871 69 331,154 3,306,695 26 182,647 411,227 70,210 1,197/681 162,181 2,023,946 171,364 2,195,310 1,192,425 1,542,975 247,703 26,869 69 293,676 3,303,717 Dec. 3 201,131 388,743 67,864 1,194,204 170,733 2,022,675 175,520 2,198,195 1,160,685 1,616,116 243,055 26,857 69 287,010 3,333,792 10 194,869 410,917 67,745 1,210,563 151,177 2,035,271 177,136 2,212,407 1,169,244 1,547,565 244,690 26,857 69 328,294 3,316,749 17 200,494 353,866 67,745 1,269,725 150,538 2,042,368 180,ICO 2,222,468 1,158,974 1,437,775 234,609 26,859 69 365,555 3,223,841 23 273,749 363,723 3,300 1,253,492 161,538 2,055,802 180,952 2,236,754 1,177,263 1,554,428 241,167 26,859 69 281,253 3,281,039 30. 263,952 j 356,244 3,300 i 1,276,214 159,623 2,059,333 189,830 2,249,163 1,141,036 1,578,098 255,702 26,859 69 261,263 3,263,027 TJncol- Five per Deposits. Note circulation. lected cent reitems demption Date. p B i r s a e e n m s k . - an d t f g d e i r r d o o o o u n m s t s c s h - er R F a B g f e e u a s d a n e i e n n d r r k v s a t e l r A es ll o u o r t c h e e s r . s l o T ia u o b r t c i a l e l i s t i r a e e n s - . d p C a a i p d it i a n l . Surplus. G m o e v n er t. n- M re e s m er b v e e r . s' D b e i f l e i r t r y e . d A i G n f l o l m c o r l o v e e u t e i n d h g r t i e n n n r - g , g T r o o t s a s l . R F n e e o s d t e e e r r s v a . e l R n F B o e e n t s d a e e e e n s t r r — k v a e l A l l i l t a i b o e i s t l h . i e - r deposits. notes. credits. liability. 1920. Jan. 2 10,369 1,171,778 13,130 5,733 6,504,090 87,433 120,120 38,920 1,922,800 944,884 116,307 3,022,911 2,998,992 258,561 16,073 9 10,410 1,019,140 13,254 5,241 6,134,127' 87,451 120,120 27,798 1,850,219 760,590 96,425 2,735,032 2,914,368 259,099 18,057 16 10,461 1,116,852 12,865 5,463 6,272,446 87,529 120,120 34,698 1,943,561 849,854 107,800 2,935,913 2,849,879 258,482 20,523 23 10,493 1,022,633 12,130 5,483 6,171,747 87,589 120,120 90,448 1,859,149 795,782 95,097 2,840,476 2,844,227 254,843 24,492 30 10,559 933,128 12,260 5,341 6,074,412 87,892 120,120 72,974 1,850,712 720,520 95,418 2,739,624 2,850,944 250,530 25,302 Feb. 6 10,586 896,971 12,232 5,048 6,040,685 89,119 120,120 42,446 1,869,438 654,735 95,876 2,662,495 2,891,775 248,780 28,396 13 11,103 1,052,333 12,114 4,122 6,285,375 89,674 120,120 24,218 1,837,865 880,451 97,044 2,839,578 2,959,087 245,810 31,106 20 11,144 1,029,653 12,724 3,851 6,278,487 90,531 120,120 75,587 1,828,891 815,606 95,366 2,815,450 2,977,124 240,858 34,404 27 11,226 1,026,726 12,276 3,681 6,416,356 90,702 120,120 133,913 1,871,961 810,402 95,026 2,911,302 3,019,984 237,131 37,117 CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No, 16«—Resources and liabilities of all Federal Reserve Banks combined at close of business on each Friday from Jan 2 to Dec. , 0, 1920—Continued. [In thousands of dollars.\ Uncol- Five per Deposits. Note circulation. lected cent reitems demption Bank and other fund ' Total re- All other, Federal All other Date. p i r s e e m s. - d t e io d n uc s - F ag e a d i e n r s a t l resources. s l o ia u b rc il e i s t i a es n . d paid in. Surplus. Govern- Members' Deferred in f c o l r u e d ig in n g Total Federal R B es a e n r k ve li t a i b e i s l . ig fr r o o m ss R B es a e n r k ve ment. reserve. bility. G m ov e e n r t n- gross. notes. no n t e e t sdeposits. notes. credits. liability. 1920. Mar. 5 11,771 865,850 16,226 4,174 6,168,603 90,966 120,120 83,879 1,858,184 624,655 91,525 2,658,243 3,030,010 229,167 40,097 12 11,791 849,752 13,851 5,485 6,159,531 90,871 120,120 55,324 1,886,929 60S, 600 97,009 2,647,862 3,039,750 220,738 40,190 19 11,793 956,381 14,387 5,121 6,155,905 90,958 120,120 60,503 1,850,106 632,835 100,969 2,644,413 3,047,133 211,132 42,149 26 11,990 768,788 13,900 4,907 6,047,771 91,059 120,120 27,711 1,867,125 546, 696 100,160 2, 541,092 3,048,039 201,392 45,469 Apr. 2 12,009 833,023 13,689 4,474 6,140,593 91,284 120,120 10,416 1,899,063 565,880 131,933 2,607,292 3,077,323 196,594 47,980 9 12,104 793,615 12,481 5,802 6,067,872 91,160 120,120 8,777 1,850,960 575,412 100,605 2,535,754 3,080, 217 190,157 50,464 16 12,123 957,678 14,015 5,305 6,235,422 91,272 120,120 30,595 1,898,810 677, 282 103,666 2,710,353 3,073,693 186,501 53,483 23 12,328 817,028 13,438 5,178 6,108,325 91,364 120,120 42,810 1,856,092 595,125 96,588 2,590,615 3,068,307 180,631 57,288 30 12,369 713,353 12,091 6,057 6,050,467 91,639 120,120 37,592 1,859,844 529, 855 98,794 2,526,085 3,074,555 177,881 60,187 May 7 12,433 705,603 12,128 5,621 6,026,229 92,536 120,120 22,437 1,818,615 544, 564 94, 284 2,479,900 3,092,344 177,972 63,357 14 12,530 807,445 11,787 5,006 6,186,071 93,107 120,120 44,153 1,874,145 634,813 93,6S9 2,646,800 3,083,234 176,805 66,005 21 12,658 755,476 12,081 5,028 6,086,161 93,786 120,120 24,368 1,833,665 585,517 96,305 2,539,855 3,085,202 177,371 69,827 28 12,668 747,190 11,862 5,699 6,114,340 94,000 120,120 36,433 1,852,916 561,244 91,037 2,541,630 3,107,021 179,185 72,384 June 4 12,942 789,616 11,745 5,640 6,195,509 94,108 120,120 36,745 1,858,774 609,396 91,876 2,596,791 3,127,291 181,252 75,947 11 13,111 772,903 11,794 5,751 6,139,969 94,284 120,120 21,830 1,869,240 579,466 81,500 2,552,036 3,112,205 182,382 78,942 18 13,254 949,977 12,110 8,053 6,152,977 94,462 120,120 56,256 1,800,117 633,722 77,485 2,567, 580 3,104,810 183,904 82,101 25 13,492 750,486 12,148 6,707 6,074,713 94,506 120,120 14,189 1,831,916 556,623 69,981 2,472,709 3,116,718 185,604 85,056 July 2 13,658 785,059 12,424 4,296 6,198,457 94,594 164,745 22,809 1,874,161 581,610 62,475 2,541,055 3,168,814 189,232 40,017 9 13,734 797,347 12,293 3,822 6,178,377 94,639 164,745 15,919 1,839,704 594,434 55,159 2,505,216 3,180,948 190,287 42,542 16 14,084 890,554 12,400 4,271 6,208,017 94,730 164,745 1 11,700 j 1,868,428 646,782 50,585 2,577,495 3,135,893 189,375 45,779 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

23...... 14,243 772,333 12,742 3,576 6,075,124 95,008 164,745 11,972 1,825,564 572,109 48,332 2,457,977 3,118,205 190,067 49,122 30 14,289 711, 064 12,684 3,777 6,032, 769 95,225 164, 745 12,167 1,808,156 536, 690 51,296 2,408,309 3,120,138 192,168 52,184 Aug. 6 14,444 733, 688 13,002 3,500 6,0&3,970 95,341 164,745 20,780 1,816, 798 549, 778 44,821 2,482,177 3,141, 861 194, 834 55,012 13 14,604 799, 202 11,947 3,859 6,176, 836 96,551 164,745 11,623 1,834, 542 599,397 I 46,090 2,491,652 3,169,181 196, 912 57,795 20 14,654 782, 240 11,600 ! 3,827 6,181, 220 96,759 164,745 54,959 1,793,675 591, 094 ! 44, 828 2,484,556 3,174, 725 198, 563 61,872 27 14,869 729, 889 11,956 j 4,558 6,178, 771 97,055 164,745 43,510 1,818,502 542, 564 43,180 2} 447, 756 3,203,637 200,793 64,785 Sept. 3 14,921 753,707 11,695 | 3,875 8,267, 091 97,133 164, 745 65,387 1,829, 832 554,475 39,123 2,488, 817 3,243, 270 205,423 67,703 10 15,086 837, 060 11,788 I 6,569 6,353, 233 97,191 164,745 30,975 1,828,924 617, 785 38,793 2,516,477 3,295,185 209,073 70,562 a 17 15,263 1,097,408 12,024 | 4,660 6,513, 661 97,366 164, 745 135,178 1,821, 843 676, 265 42,409 2,675,695 3,289, 681 212, 219 73,955 o 24 15,370 818, 958 11,824 | 4,941 6,312,275 97,401 164,745 46,493 1, 800, 677 595,342 34,910 2,477,422 3,279, 996 214,180 78,531 t B Oct. 1 15.455 820, 280 11, 856 5,414 6,327,717 97,358 164,745 46,454 1,776,243 608, 056 35,363 2,466,116 3,304, 690 213,412 81,396 8 15,634 796,723 11, 666 | 4,833 6,389,361 97,519 164, 745 43, 365 1,825, 906 609, 980 27, 648 2,506, 899 3,322,123 213,154 84,921 c 15 15, 766 998,488 12,158 | 6,951 6,610,250 97,594 164,745 13,975 1, 868, 016 776, 887 33,740 2,692,618 3,353, 271 213,533 88,489 *4 22 15,864 825,740 12, 953 | 5,401 6,374, 908 97, 692 164, 745 15,015 1,779, 345 634, 097 21,929 2,450,386 3,356,199 213, 838 92,048 o 29 15, 993 742, 976 12,854 5,703 6,341, 607 97, 753 164,745 18, 754 1,805, 661 571, 807 21, 307 2,417,529 3,351,303 214, 961 95,310 Nov. 5 16, 081 787, 960 12, 059 6,032 6,413,436 97, 824 164, 745 47,378 1,777,256 631,326 26,923 2,482, 883 3,354,180 214,533 99,271 12 16,577 772,277 12,090 6,790 6,356,591 98,847 164, 745 17,845 1,801, 864 601, 624 25,708 2,447,041 3,328, 985 215,080 101,893 19 17,047 804,424 12,376 6,030 6,326,800 98, 929 164,745 12,259 1,781, 806 616, 871 26,228 2,437,164 3,307,435 213, 881 104,646 ft 26 17,333 709,401 11,541 j 7,187 6,244,489 99,020 164, 745 15, 909 1,711,774 582,432 22,927 2,333, 042 3,325,538 214, 610 107,534 > Dec. 3 17.456 734,523 12,197 7,716 6,303,879 99,140 164, 745 60, 688 1,763,822 551, 529 25,742 2,401,781 3,312,039 214,939 111,235 10 17, 658 666, 505 11,387 8,332 6,233, 038 99,174 164, 745 28,394 1,758, 967 516, 934 24, 511 2,328, 806 3,311,842 214, 523 113, 948 17 17,952 902,042 12,530 8,430 6,387,263 99,275 164, 745 53,173 1,738, 826 614,166 38,471 2,444, 636 3,344,332 217, 434 116,841 23 18,168 761, 005 12, 652 8,417 6,318,035 99,458 164,745 26, 049 1,721,391 539, 261 23,652 2,310,353 3,404, 931 218, 832 119,716 18,450 717,227 12,752 6,269,517 99,770 164,745 27,639 1,748,979 522,638 22,161 2,321,417 3,344,686 216,960 121,939 7\ in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

142 ANNUAL REPORT FEDERAL, RESERVE BOARD. MOVEMENT OF EARNMG ASSETS OFALLFEDERAL RESERVE SAHKS COMBINEND DURING 1320 i 600 600 400 400 1 200 200 n o m UNITED STATES SECURITIES. 600 i HI 600 4O0 ! 4OQ Wk ^^ 200 \ 200 i /> ! ACCEPTANCES BOU6HT. 3000 3000 2800 2600 2600 "^ 2600 ^ t 2400 2400 2200 •s ^ s s ^ 2200 2000 w 2000 1800 IBOO 1600 1600 1400 V//Y/, MOO I 1 D 2 f 0 Y 0 ) / W //// A A , / W yy / y A y,' 'H. / / / / / / / / / / , Ai y ///A / W YAW / 1? A /M 1 // 2 y 0 y 0 i SHY) WA W/,W/AW. /AW/AAM W/AW/AW/A WAt 4 6 0 0 0 0 HP Y 9 /Mw // % // W W // / / / / A / W W // A / / AW W // A / / AW W / / A // y , 4MW //AW % / W w/ A / W W/ / A ' W /A /A /A . 4 6 0 0 0 0 200 ////// /AAAAA/ '/////A 'AAAAA/ 200 0 0 L>: TOTAL BILLS DISCOUNTED. VV.- WARPAPER. 3600 3600 1 14(Y) J^nJU 3200 ^^ A X V V s O N s V V 3200 2 3 8 0 0 0 0 0 ^^ w$ ^^ ^$ = $^ 3 2 0 8 0 0 0 0 2600 MSHH mm ^ $$ ^W ^^ 2600 2400 ^s^^ 2400 2200 MS ^^ 2200 2000 §$^ ^§$ 2000 1800 Hi ^^ ^M 1800 1600 Hi 1600 1400 1400 ?$^ 1200 IOOO IOOO ^ 600 800 N^in^ ^ ^^ $^ 600 ^^ ^^ ^^ 400. 400 ^^ 200 200 Q TOTAL EARNING'ASSETS\ JAN. FEBMARAPR.MAY\lUIitJULYAU6.sm.OCT.NOV.DEC. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONDITION OF FEDERAL RESERVE BANKS. 143 NET DEPOSITS, ER.NOTE ORCUIATION, TOTAL RESERVES. AND RESERVE PERCENTA6E OFALLfEDERALRESERVEBANKS COMBINED DURING 1320 PERCENT mean SO so 40 30 RESERVE PERCENTAGE, (RATIO OF 3+4) 30 N 5000 5000 4600 4S00 4000 4000 3S00 3500 3000 3000 2500 2500 2000 £000 ISOO 1500 1000 WO soo 500 o 6: CASH RESERVES. 4: DEPOSITAUDHOTE LIABILITIESO.. 1500 1000 1000 500 500 0 .-DEPOSITS. E.'F.R.NOTE CIRCULATION. JAM.FEB. MAR. APR.MAY JUIHE JULY AUS6E.PT. OCT.NOV.DEC Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 17.—Net amount of accommodation received from or extended to other Federal Reserve Banks. [End-of-month holdings in thousands of dollars. Plus sign indicates net accommodation extended; minus sign, net accommodation received.] Date. Boston. Y N o e r w k. Ph p il h a i d a e . l- 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. Fra S n a c n isco. Total. 1919. Apr. 25.. 7,159 - 9,662 -29,496 + 20,254 -25,000 +54,670 + 187 + 18,071 -10,000 -26,468 + 14,603 107,785 May 29.. 858 -25,571 -35, 533+ 35,533 -45,000 + 52,332 + 10,000 + 15,000 -32,332 +26,429 139, 294 d June 27.. 5,062 -22,394 -57,967 + 23,750 -55,000 +64,122 + 9,735 + 25,000 - 9,640 +27,456 150,063 July 25.. -48,579 -34, 900+ 10,012 -50,000 + 54,900 + 5,000 + 25,000 +38, 567 133,479 Aug. 29.. -39,432 -20, 930+ 419 -29,725 +33, 930 + 8,250 + 11,475 + 10,013 - 3,000 + 29,000 93,087 Sept. 26.. -31, 702 -18,295 -25,000 - 8,900 + 60,195 +10,000 + 14,725 -18,000 + 16,977 101,897 O Oct. 31.. -45, 864 -23, 448+ 10,042 - 5,500 +48, 980 + 5,014 . + 10,776 74,812 w Nov. 28.. -40,474 -96, 440 -23,500 + 23,269 + 5,C + 67,871 + 32,564 + 10,005 + 10,078 + 11,547 160,414 Dec. 26.. -69,899 -58,201 -27,615 + 12,265 + 5,0 + 5,065 + 60,090 +29,022 - 3,195 +32,123 + 15,265 158,910 1920. Jan. 30 - 1,021 -75,649 -32,790 + 27,521 - 5,000 + 15,000 + 51,918 + 1,663 + 14,950 + 3,408 114,460 Feb.27 -11,923 -55,308 -38,925 + 15,601 + 16,187 + 33,410 + 4,000 + 10,050 + 23,500 + 3,408 106,156 Mar.26 + 20,414 -34,096 -35,555 38, 304 -15,000 + 3,351 + 7,605 -11,829 + 10,029 + 1,871 + 7,825 + 7,081 96,480 Apr. 30 + 22,126 +92,683 -20, 709+ 48,275 -24, 850 -38,471 -41,385 — 11,111 -15,871 - 3,000 - 7,687 163,084 May 28 +20,366 +82,054 + 43,761 -25, 000 - 8,500 -18,995 -50,060 -19,132 -13,865 -13,000 + 2,371 148,552 June 25 +17,130 +56,567 + 52,078 -24,904 - 7,960 -24,950 —26,723 -23,672 -12,958 - 5,000 + 392 126,167 July 30 +48,368 + 6,474 + 10,014 64, 756 -23,133 -21,607 -10,001 -30,607 -13,738 -22,902 -26,716 + 19,092 148,704 w Aug. 27 + 66,911 -40, 923 + 11,812 + 121,060 -25,000 -31,963 - 8,001 -32, 434 -20,347 -22,247 -34,540 + 15,672 215,455 o Sept. 24 + 60,655 -13,404 + 35,812 +145,620 -24,620 -45,533 -29,800 -36, 996 -21,349 -41,175 -37,419 + 8,209 250,296 Oct.29 + 84,396 -61,362 +37, 201+138, 750 -14,275 -36,122 - 7,050 -37,305 -26,603 -44,895 -32,828 + 93 260,440 Nov. 26 +27, 654 -24,502 + 21,758 + 112,106 -10,000 -40, 216 -12,793 -25,860 -28,404 -26, 600 + 6,917 168,435 Dec. 30 +16,575 - 6;917 + 17,109 + 81,578 -10,000 -33, 659 -14,801 -29,086 -27,711 + 6,917 122,174 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONDITION OF FEDERAL RESERVE BANKS. 145 INTERDISTRICTACCOMMODATION NET AMOUNT OFACCOMMODATION RECEIVED FROM OR EXTENDED TO OTHER FEDERAL RESERVE BANKS, APRIL 1919 TO DECEMBER I 820 END-OE-MONTfi HOLDINGS, IN MILLIONS OF DO LIARS. : J?ccom,rrwda£w?i Jtecewed,. MIUJOHS MILLIONS Minions I MILUOKS 100 KXJ KXJ KXJ 2 4 8 4 2 8 6 6 o 0 0 0 0 0 0 0 0 \ \ j \ > \ \ 4 8 2 S 2 6 d 6 0 0 0 0 0 0 O O 0 8 2 4 4 8 6 2 6 0 0 0 0 0 0 0 0 0 \ \ 1* L A j 1 X/ J r 1 / 1 1\ \ \ \ \/ 4 \ \7 4 2 8 4 2 6 8 6 0 0 0 0 0 0 0 0 0 W XX) too too BOSTOIS (lEiVWRK 80 I 80 180 m 4 3 6 0 0 0 / 1 4 6 2 0 0 0 J M 1 6 2 O 0 0 \ m 1 J6 2 0 0 2 0 0 / 1 3 0 0 D 80 O \ X 8 X 0 ) 8 4 6 0 0 0 \ / 4 8 6 0 0 0 4 2 6 0 0 0 / s •«. 3 4 6 D 0 0 too W O 0 120 120 20 20 PHILADELPHIA Oil *LAIS> 1 20 20 2O 30 0 0 0 0 20 / 20 20 30 4 6 0 0 \ s A 4 6 0 0 4 6 0 0 4 6 0 0 RICHMOND ATLAHTA 30 80 40 &) 4 6 0 0 \ / s 4 6 0 0 2 0 0 * V 2 0 0 20 20 30 / 20 0 0 40 = 40 20 \ — 20 60 eo 40 > 40 80 $0 CHICAGO ST. LOUIS 40 40 30 30 2 0 0 s 2 0 0 2 0 0 \ 3 0 D 3D •% 2O 40 s 40 60 * 60 M/IWEAFOLIS KAN5ASCITr 40 60 60 20 / 20 40 40 0 / v 0 20 20 2O r s/ s 20 0 SJ j 0 40 s 20 20 1 DALLAS SAN ERA II CIS CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 18.—Condition of each Federal Reserve Bank on Dec. 31, 1920. [Detailed figures in roman type represent items shown on the balance sheets of the banks before closing of books on Dec. 31,1920; figures in bold face indicate results of consolidation according to methods used in the compilation of the Board's weekly statement.] [In thousands of dollars.] RESOURCES. Total. 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. St. Louis. M ap i o n l n is e . - K C a i n t s y a . s Dallas. Francisco. Gold bullion and coin 137,045 9,602 50,765 5,212 8,179 3,619 1,725 17,280 3,037 2,814 3,286 5,634 25,892 Gold certificates 124,855 2,199 81,958 875 2,729 2,083 7,019 11,736 2,092 6,316 739 4,373 2,736 Gold and gold certificates 261,900 11,801 132,723 6,087 10,908 5,702 8,744 29,016 5,129 9,130 4,025 10,007 28, 628 Gold settlement fund—Federal Re= serve Board 357,278 40,116 45,902 50,352 77,015 20,429 7,442 36,048 21,763 8,456 23,957 2,074 23,724 Gold with foreign agencies 3,300 241 1,211 264 270 162 119 I 393 155 89 158 86 152 Total gold held by banks 622,478 52,158 179,836 56,703 88,193 26,293 16,305 65,457 27,047 17,675 28,140 12,167 52,504 Gold with Federal Reserve agent. 1,277,875 134,747 254,576 138,791 177, 635 53, 699 60,710 198,162 49,337 25,905 40,769 24,484 119,060 Gold redemption fund 162,433 18,796 39,000 8,902 15,622 6,797 10,298 53,461 6,404 3,098 5,255 4,431 10,369 Total gold reserves 2,062,786 205,701 473,412 204,396 281,450 86,789 87,313 297,080 82,788 46,678 74,164 41,082 181,933 Legal-tender notes 76, 891 9,190 51, 998 776 2,185 354 454 6,432 1,911 126 1,756 1,317 392 Silver certificates 80, 355 46 71, 309 117 5 1 43 6,381 1,586 12 60 526 269 Silver coin 33,008 2,579 21,452 100 38 8 1,530 1,627 2,591 112 517 2,613 501 Legal=tender notes, silver, etc. 190,914 11,815 144,759 993 2,228 363 2,027 14,440 6,088 250 2,333 4,456 1,162 Total cash reserves. 2,253,700 217,516 618,171 205,389 283,678 87,152 89,340 311,520 88,876 46,928 76,497 45,538 183,095 Member banks' collateral notes, seoured by Government war obligations 878,015 54,1G6 329,174 75,782 88,079 40,490 48,442 116,300 36,308 11,384 21,928 12,914 43,048 Other discounted bills, secured by Government war obligations 276,4G8 24,059 125,578 39,865 11,931 5,465 12,998 24,128 7,469 5,709 7,778 2,990 8,498 Bills discounted, secured by Govern* ment war obligations 1,154,483 78,225 454,752 115,647 100,010 45,955 61,440 140,428 43,777 17,093 29,706 15,904 51,546 Member banks' collateral notes, secured otherwise than by Government war obligations 17,692 50 292 850 264 3,299 45 9,346 749 873 1,924 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Other discounted bills, secured otherwise than by Government war obligations... 1,515,218 95,143 416,687 56,686 101,041 68,668 70,897 331,836 71,111 55,215 79,886 53,920 114,128 Bills discounted—All other 1,532,910 95,143 416,687 56,736 101,333 69,518 71,161 335,135 71,156 64,561 80,635 54,793 116,052 Bills bought in open market 260,406 20,678 113,740 12,689 27,211 5,048 3,571 25,741 1,199 1,313 2,171 247 46,798 Total bills on hand 2,947,799 194,046 985,179 185,072 228,554 120,521 136,172 501,304 116,132 82,967 112,512 70,944 214,396 Liberty bonds 2,009 10 213 885 419 82 103 64 29 204 Other United States bonds 24,306 529 1,255 549 415 1,152 10 4,426 1,153 116 8,838 3,979 1,884 United States Government bonds 26,311 539 1,468 1,434 834 1,234 113 4,490 1,153 116 8,867 3,975 2,088 United States Victory notes 73 5 50 10 3 1 4 one-year certificates of indebtedness (Pittman Act) 259,375 21,436 59,276 30,280 23,799 12,260 16,664 39,612 15,568 8,480 12,820 8,300 10,880 Other certificates oi indebtedness. 1,270 83 390 181 2 8 455 1 150 United States certificates of indebtedness 260,645 21,519 59,666 30,461 23,799 12,262 16,672 39,612 16,023 8,480 12,821 8,300 11,030 Total earning assets 3,234,828 216,109 1,046,363 216,967 253,197 134,017 152,960 545,406 133,308 91,563 134,201 83,223 227,514 Bank premises ... ... 17,860 2,700 4,378 500 1,649 1,447 541 2,379 541 668 1,041 1,639 377 Due from foreign banks 1,120 1,120 National bank notes .. ... 6,049 831 1,725 6 937 1,068 572 233 234 144 299 Bank notes of other Federal Reserve Banks 1 302 5 C1) 11 1,219 11 56 Federal Reserve notes of other Federal Reserve Banks 31,131 645 14,308 85 1,450 1,723 6,515 704 422 248 1,001 4,030 Unassorted currency 51,352 8,503 9,240 4,219 7,329 7,323 15 3,064 358 4,426 3,024 2,851 Transit items. 543,785 44,436 101,147 46,675 53,073 50,003 20,270 62,803 33,775 17,145 50,213 29,778 34,467 Checks and other cash items 23,343 211 14,656 5,263 16 269 78 549 71 439 157 628 1,006 Deferred items—Treasurer United States.. 2 2 Unmatured Government coupons 2 1 1 Exchan ges for clearing house 46,006 2,997 10,113 6,486 8,418 2,268 1,063 6,843 1,038 1,122 375 646 4,637 Domestic transfers purchased 23,649 4,723 9,985 1,875 7,066 Uncollected items and other deduc= tions from gross deposits 727,741 57,623 141,346 67,749 73,629 59,875 31,406 88,997 39,225 21,605 55,653 42,287 48,346 Five per cent redemption fund against Federal Reserve bank notes. 12,588 1,072 2,766 1,300 1,240 601 561 1,779 623 480 915 586 665 i Less than -1500. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 18.—Condition of each Federal Reserve Bank on Dec. SI, 1920—Continued. [Detailed figuresi n roman type represent items shown on the balance sheets of the banks before closing of books on Dec. 31,1920; figures in bold face indicate results of consolida- OO tion according to methods used in the compilation of the Board's weekly statement.] [In thousands of dollars. ] RESOURCES—Continued. Total. Boston. Y N o e r w k. Ph p i h l i a a. del l C a l n ev d e . - m R o i n ch d - . Atlanta. Chicago. St. Louis M ap i o n l n is e . - K C a i n ty sa . s Dallas. Fran S c an isco. 1 1 1 Other resources: g War-loan expenses . 010 87 225 38 82 36 40 85 71 11 112 24 99 Fiscal agency—general expenses 32 32 Certificates of indebtedness—disbursements 11 11 Treasury Department special account . C1) C1) O Cost of Federal Reserve currency 104 104 Furniture and equipment 89 0) 89 Deferred charges 189 8 49 3 0) 9 4 230 52 11 71 52 Difference account 5 1 1 0) 0) 0) 3 0) United States Liberty bonds held against participation certificates 36 34 2 Real estate mortgage 37 Cafeteria future supplies 4 4 w Claims recoverable.. 1 1 Loans and discounts—suspense account 2°>7 237 Sundry losses 8 8 I Nickels and cents 1,244 155 481 0) 1 0) 30 246 220 0) 61 41 9 Overdrafts- United States Government 28,021 2 28,021 Allother 2,040 0) 61 393 149 1 2 98 237 1 1.099 Interest accrued on United States securities 2,770 219 606 314 240 128 159 425 185 86 177 100 125 All other resources 36,038 470 29,454 359 384 566 385 989 530 249 350 725 1,577 Total resources. 6,282,755 495,490 ,842,478 492,264 613,777 283,658 275,193 951,070 263,103 161,493 268,657 173,998 461,574 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LIABILITIES. Capital paid in by members 99,761 7,718 26,373 8,485 10,703 5,269 4,051 13,913 4,365 3,461 4,455 4,099 6,869 Capital paid in by applicants for membership 60 2 58 Capital paid in 99,821 7,718 26,373 8,485 10,703 5,269 4,053 13,913 4,365 3,461 4,455 4,099 6,927 Surplus . 164,745 12,351 51,308 13,069 13,712 8,067 7,050 23,917 5,884 5,178 8,395 4,152 11,662 Government deposits 24,712 2,088 858 4,562 2,695 1,579 2,138 2,618 1,031 2,669 1,660 2,814 Due to members—reserve account 1,780,449 114,441 702,431 111,014 150,347 57,085 49,172 249,771 66,903 43,520 74,318 46,995 114,452 Government transit items 16,919 703 5,372 643 1,257 1,133 4,267 1,135 839 1,570 United States Treasurer—suspense account ... 80 80 Coin deposited for redemption 14 14 Currency deposited for redemption 37 37 All other transit items.. 500,651 41,712 92,530 45,552 53,910 38,945 19,227 51,644 32,897 16,653 47,630 27,559 32,386 Domestic transfers sold. 401 400 1 Deferred availability items 518,102 41,763 93,319 51,324 54,553 40,202 20,360 55,911 34,032 17,492 47,630 27,559 33,957 Foreign Government credits (l) 0) Foreign banks 5,494 292 2,962 320 328 196 144 476 188 108 192 104 184 Nonmembers—clearing accounts 9,220 1 5,569 17 637 468 134 1 2,395 Cashiers' checks 7,870 306 3,602 869 115 87 142 707 62 290 486 142 1,062 Federal Keserve exchange drafts 207 38 83 11 5 22 0) 0) 48 Federal Reserve transfer drafts 82 46 26 10 Suspense account—5 per cent redemption fund, national banks. . 3?4 149 175 Suspense credits 3 3 Other deposits, including foreign Government credits 23,200 835 12,133 1,447 454 288 303 1,868 716 532 679 246 3, 699 Total gross deposits 2,346,463 159,127 807,883 164,643 209,916 100,270 71,414 309, 688 104,269 62,575 125,296 76,460 154,922 Federal Reserve notes outstanding 3,735,731 301,554 1,036,354 291,299 378,693 161,034 179,760 634,237 155,391 81,386 118,125 84,754 313,144 Less: Held by bank and branches 374,805 9,824 167,855 11,521 27,145 4,908 5,844 82,189 18,021 744 5,634 4,269 36,911 Forwarded for redemption 24,585 2,950 1,018 1,456 2,597 957 510 6,653 1,585 1,144 913 1,032 3,770 Total deductions. 399,450 12,774 168,873 12,977 29,742 5,8C5 6,354 88,842 19,606 1,888 6,547 5,301 40,681 L Less than $500. 2 Credit balance after closing of books, $11,298,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 18.—Condition of each Federal Reserve Bank on Dec. SI, 1920—Continued. [Detailed figures in roman type represent items shown on the balance sheets of the banks before closing of books on Dec. 31,1920; figures in bold face indicate results of consolida- Or tion according to methods used in the compilation of the Board's weekly statement.] O [In thousands of dollars.] LIABILITIES—Continued. Total. 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. Fra S n a c n isco. Federal Reserve notes in actual circu* lation 3,336,281 288,780 867,481 278,322 348,951 155,169 173,406 545,395 135,785 79,498 111,578 79,453 272,463 Federal Reserve bank notes outstanding.. 239,989 20,623 55,327 22,792 23,209 11,938 16,170 39,804 9,609 7,829 14,855 8,745 9,088 Less: Held by bank and branches 23,348 269 16,494 191 474 472 995 948 122 174 634 1,644 931 Federal Reserve bank notes in actual circulation—net liability 216,641 20,354 38,833 22,601 22,735 11,466 15,175 38,856 9,487 7,655 14,221 7,101 8,157 Other liabilities: Profit and loss.. 6,518 456 2,354 573 531 251 165 1,063 240 179 242 6 458 Earnings— Discount on bills discounted 84,730 5,565 28,718 5,002 6,203 3,230 3,824 15,170 3,561 2,776 3,495 2,227 4,959 Discount on bills purchased 9,297 855 3,226 454 1,370 189 85 1,234 60 54 89 20 1,661 Interest on United States securities 3,621 316 994 391 325 13S 161 491 197 87 232 131 158 Interest earned on bill of lading drafts 3 3 Deficient reserve penalties (including interest) 930 20 64 35 54 117 59 103 59 67 153 123 76 Domestic transfers bought and sold net 540 59 213 47 219 2 Commissions 0) Profit on United States securities. 15 12 1 2 Income and expense—real estate.. 107 107 Rental account 12 12 Miscellaneous 270 16 80 30 18 16 13 39 17 7 14 6 14 Gross earnings 99,525 6,784 33,189 5,912 8,029 3,690 4,142 17,251 3,894 3,053 3,983 2,726 6,872 Less current expenses 17,486 1,149 3,750 1,823 1,444 913 756 2,413 1,508 628 1,088 842 1,172 Current net earnings 82,039 5,635 29,439 4,089 6,585 2,777 3,386 14,838 2,386 2,425 2,895 1,884 5,700 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Deduct—dividends paid in current period 2,362 0) 763 252 308 154 118 410 129 100 133 0) 25 Net earnings available for dividends, surplus, and franchise tax 79,677 5,635 28,676 3,837 6,277 2,623 3,268 14,428 2,257 2,325 2,762 1,884 5,705 Reserved for franchise tax 14,962 14,962 Reserved for taxes other than franchise tax 210 41 71 28 29 19 22 Reserved for taxes on Federal Reserve Bank notes 94 94 Reserved for sundry expenses 918 430 52 30 53 155 130 1 43 1 23 Reserved against undetermined liabilities 293 200 93 Reserved for adjustments 368 368 Depreciation reserve on United States bonds... 1,279 85 201 145 89 5 14 103 173 54 84 241 •85 Self-insurance reserve 262 262 Gold in transit or in custody—withheld for expense account 326 326 Suspense account. 230 230 Deficient reserve penalties—suspense.. 4 4 Participation certificates — Liberty loan bonds . . .. 16 14 2 0) Proceeds of sale of war loan office equipment C1) 0) Victory Liberty Loan Association 3 3 Difference account.. 26 26 0) 0) 0) Accrued dividends unpaid 0) 0) Unearned discount 13,618 943 2,851 533 792 477 595 3,524 484 548 1,213 486 1,172 All other liabilities 118,804 7,160 50,600 5,144 7,760 3,417 4,095 19,301 3,313 3,126 4,712 2,733 7,443 Total liabilities. 6,282,755 495,490 1,842,478 492,264 613,777 283,658 275,193 951,070 263,103 161,493 268,657 173,998 461,574 i Less than $500. 2 Interest received. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 19.—Net its, Federal Reserve note circulation, required reserves, excess reserves, and reserve percentages for each Friday in 1920. Or [In thousands of dollars.] Liability on- Reserves required. Ratio of Gold in totalcash Total cash excess of n re e s t e d rv e e p s o t s o it Date. dep N o e s t its. ci K n F r o c e e u t d s e l e e s a r r t y i a i n o e l n. c a D o n m e d p b n o i o n si t e t e d s s . d O ( c e 3 p e n 5 n o n p t s ) e i e . t t r s O p n R n e o r e t F e s c e e s e d r n ( v e 4 t e r ) 0 a . l Total. re h s e e l r d v . e r r e e g q ( s o f u e r l r e i d v r e e ) e . d s s l a e i e n a r r b v d a i e l l F R i n t e i o e e d - t s - e combined. I 1920. Per cent. Jan. 2 1,851,133 2,998,992 4,850,125 647,896 1,199,597 1,847,493 2,121,272 273,779 43.7 9 1,715,892 2,914,368 4,630,260 600,562 1,165,747 1,766,309 2,102,099 335, 790 45.4 16 1,819,061 2,849,879 4,668,940 636,671 1,139,952 1,776,623 2,104,281 327,658 45.1 23 1,817,843 2,844,227 4,662,070 636,245 1,137,691 1,773,936 2,087,896 313,960 44.8 30 1,806,496 2,850,944 4,657,440 632,274 1,140,378 1,772,652 2,073,933 301,281 44.5 I Feb. 6 1,765,524 2,891,775 4,657,299 617,933 1,156,710 1,774,643 2,054,656 280,013 44.1 13 1,787,245 2,959,087 4,746,332 625,536 1,183,635 1,809,171 2,052,513 243,342 43.2 20 1,785,797 2,977,124 4,762,921 625,029 1,190,848 1,815,877 2,035,440 219,563 42.7 27 1,884,576 3,019,984 4,904,560 659,602 1,207,994 1,867,596 2,083,215 215,619 42.5 Mar. 5 1,792,393 3,030,010 4,822,403 627,338 1,212,004 1,839,342 2,054,630 215,288 42.6 12 1,798,110 3,039,750 4,837,860 629,339 1,215,900 1,845,239 2,056,730 211,491 42.5 I 19 1,688,032 3,047,133 4,735,165 590,811 1,218,853 1,809,664 2,060,326 250,662 43.5 26 1,772,904 3,048,039 4,820,943 620,516 1,219,216 1,839, 732 2,057,155 217,423 42.7 Apr. 2 1,774,269 3,077,323 4,851,592 620,994 1,230,929 1,851,923 2,080,428 228,505 42.9 W o 9 1,742,139 3,080,217 4,822,356 609,749 1,232,087 1,841,836 2,087,306 245,470 43.3 16 1,752,675 3,073,693 4,826,368 613,436 1,229,477 1,842,913 2,087,731 244,818 43.3 23 1,773,587 3,068,307 4,841,894 620, 755 1,227,323. 1,848,078 2,083,568 235,490 43.0 30 1,812, 732 3,074,555 4,887,287 634,456 1,229,822 1,864,278 2,070,765 206,487 42.4 May 7 1,774,297 3,092,344 4,866,641 621,005 1,236,938 1,857, 943 2,076,087 218,144 42.7 14 1,839,355 3,083,234 4,922,589 643,774 1,233,294 1,877,068 2,078,393 201,325 42.2 21 1,784,379 3,085,202 4,869,581 624,533 1,234,081 1,858,614 2,079,538 220,924 42.7 28 1,794,440 3,107,021 4,901,461 628,054 1,242,808 1,870,862 2,092,496 221,634 42.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

June 4. 1,807,175 3,127,291 4,934,466 632,511 1,250,916 1,883,427 2,098,940 215,513 42.5 11. 1,779,133 3,112,205 4,891,338 622,697 1,244,882 1,867,579 2,102,591 235,012 43.0 18. 1,617,603 3,104,810 4,722,413 566,161 1,241,924 1,808,085 2,100,900 292,815 44.5 25. 1, 722,223 3,116, 718 4,838,941 602,778 1,246,687 1,849,465 2,108,605 259,140 43.6 July 2. 1, 755,996 3,168,814 4,924,810 614,599 1,267,525 1,882,124 2,109,501 227,377 42.8 9. 1,707,869 3,180,948 4,888,817 597, 756 1,272,379 1,870,135 2,108,193 238,058 43.1 16. 1,686,941 3,135,893 4,822,834 590,430 1,254,357 1,844,787 2,119,047 274,260 43.9 23. 1,685,644 3,118,205 4,803,849 589,976 1,247,281 1,837,257 2,134,012 296,755 44.4 O 30. 1,697,245 3,120,138 4,817,383 594,036 1,248,057 1,842,093 2,128,640 286,547 44.2 O Aug. 6. 1,698,489 3,141,861 4,840,350 594,471 1,256,746 1,851,217 2,131, 744 280,527 44.0 u 13. 1,692,450 3,169,181 4,861,631 592,357 1,267,675 1,860,032 2,132,885 272,853 43.9 20. 1,702,316 3,174, 725 4,877,041 595,811 1,269,892 1,865, 703 2,121,837 256,134 43.5 B 27. 1,717,867 3,203,637 4,921,504 601,251 1,281,454 1,882, 705 2,127,827 245,122 43.2 Sept. 3. 1,735,088 3,243,270 4,978,358 607,281 1,297,308 1,904,589 2,117,957 213,368 42.5 o 10. 1,679,417 3,295,185 4,974,602 587,796 1,318,074 1,905,870 2,131,247 225,377 42.8 17. 1,578,287 3,289,681 4,867,968 552,400 1,315,872 1,868,272 2,133,145 264,873 43.8 24. 1,658,464 3,279,996 4,938,460 580,462 1,311,998 1,892,460 2,151,594 259,134 43.6 Oct. 1. 1,645,836 3,304,690 4,950,526 576,043 1,321,876 1,897,919 2,165,195 267,276 43.7 8.. 1,710,176 3,322,123 5,032,299 598,563 1,328,849 1,927,412 2,158,268 230,856 42.9 15.. 1,694,130 3,353,271 5,047,401 592,946 1,341,308 1,934,254 2,154,911 220,657 42.7 22.. 1,624,646 3,356,199 4,980,845 568,626 1,342,480 1,911,106 2,157,270 246,164 43.3 29.. 1,674,553 3,351,303 5,025,856 586,095 1,340,519 1,926,614 2,168,038 241,424 43.1 Nov. 5.. 1,694,923 3,354,180 5,049,103 593,224 1,341,672 1,934,896 2,169,729 234,833 43.0 12.. 1,674, 764 3,328,985 5,003,749 586,167 1,331,594 1,917,761 2,180,Oil 262,250 43.6 19.. 1,632, 740 3,307,435 4,940,175 571,459 1,322,974 1,894,433 2,180,228 285, 795 44.1 26.. 1,623,641 3,325,538 4,949,179 568,274 1,330,215 1,898, 489 2,195,310 296,821 44.4 Dec. 3.. 1,667,258 3,312,039 4,979,297 583,540 1,324, 814 1,908,354 2,198,195 289,841 44.1 10.. 1,662,301 3,311,842 4,974,143 581,805 1,324,736 1,906,541 2,212,407 305,866 44.5 17.. 1,542,594 3,344,332 4,886,926 539,909 1,337,733 1,877,642 2,222,468 344,826 45.5 23.. 1,549,348 3,404,931 4,954,279 542,273 1,361,972 1,904,245 2,236,754 332,509 45.1 1,604,190 3,344,686 4,948,876 561,467 1,337,874 1,899,341 2,249,163 349,822 45.4 00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

154 ANNUAL REPORT FEDERAL RESERVE BOARD. REQUIRED AND EXCESS RESERVES DURING 1920 I Gold.SL&erves required, against: 1 2, CasJvJteserves required against 3 ' ' 1 1 2400 2400 2300 2300 2200 2200 2100 2/00 2000 2O0Q 1300 I3O0 1800 J800 I?OO POO 1600 1600 1500 1500 J400 /400 1300 1300 1200 1200, 1100 1100 1000 1000 900 900 800 800 POO POO 600 600 S00 500 400 400 300 300 200 200 100 JOO o 0 JAN. FEB. MAR. APR. MAY JUfitJULY AU6. SEPT. OCT. HOV. DEC. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No, 20,—Cash reserves, total earning assets, net deposits, Federal Reserve note circulation, and reserve percentages, by months during 1920 and 1919. [Average daily figures; amounts in thousands of dollars.] Federal Reserve notes Reserve percentages Month. Cash reserves. Total earning assets. Net deposits. in circulation. 1-K3+4). O 1919 1920 1919 1920 1919 1920 1919 1919 O o January... 2,098,498 ,164,167 3,043,952 2,213,511 1,789,516 1,618,024 2,887,846 2,540,642 44.9 52.0 I—I February. 2,053,422 183,641 3,154,054 2,225,686 1,796,754 1,692,770 2,946,863 2,462,941 43.3 52.5 o March 2,058,293 202,368 3,211,936 2,318,422 1,782,977 1,768,256 3,040,440 2,503,350 42.7 51.6 April 2,084,077 224,948 3,191,945 2,341,724 1,770,042 1,734,281 3,071,754 2,547,535 43.0 52.0 o May 2,078,822 246,087 3,255,859 2,391,774 1,810,591 1,803,508 3,089,737 2,534,112 42.4 51.8 June 2,102,985 248,265 3,209,650 2,323,992 1,747,713 1,770,114 3,113,949 2,500,969 43.3 52.6 July 2,118,899 176,779 3,200,973 2,478,863 1,706,109 1,795,100 3,143,465 2,523,960 43.7 50.4 August 2,127,305 146,003 3,233,862 2,442,627 1,699,476 1,748,254 3,165,222 2,544,357 43.7 50.0 September 2,139,280 157,932 3,329,481 2,471,515 1,664,864 1,657,678 3,275,535 2,627,295 43.3 50.4 October... 2,162,178 207,386 3,390,089 2,709,330 1,681,047 1,810,312 3,336,768 2,738,394 43.1 48.5 November. 2,182,795 185,149 3,375,395 2,907,803 1,667,885 1,853,702 3,327,632 2,812,247 43.7 46.8 December. 2,221,573 149,653 3,313,502 3,034,224 1,622,267 1,744,217 3,342,520 2,955,476 44.7 45.7 Year 2,119,278 2,190,949 3,242,684 2,487,483 1,728,067 1,750,106 3,145,659 2,608,638 43.5 50.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 21.—Average daily holdings of discounted paper, by months during 1920. [In thousands of dollars.] Res F er e v d e e r B a a l nk. January. February. 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 . - Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . Y 19 e 1 a 8 r . Y 19 e 1 a 7 r . Boston 158,891 176,057 183,619 168,211 164,505 158,915 155,961 173,312 181,126 172,630 174,366 171,516 169,800 142,386 76,415 12,813 New York 769,899 796,204 786,551 788,359 834,779 788,273 836,176 887,809 869,682 950,582 938,688 917,872 847,434 726,895 439,076 78,622 Philadelphia... 200,182 203,427 208,398 206,740 212,325 205,215 180,393 175,459 178,134 174,146 171,018 166,911 19Q, 122 193,195 75,556 9,924 Cleveland 143,939 155,771 168,331 173,477 172,014 161,771 169,113 177,957 211,611 218,433 209,429 195,513 179,810 126,649 73,080 9,531 Richmond 102,045 101,482 104,593 94,259 95,947 97,384 101,631 103,775 109,407 110,778 114,444 113,387 104,111 94,546 54,300 10,720 Atlanta 95,344 95,394 104,432 104,878 117,322 114,709 115,109 117,059 121,760 124,813 143,172 136,636 115,940 87,910 41,159 5,812 Chicago 282,590 344,155 383,483 418,929 419,420 427,021 439,987 436,806 451,341 468,594 466,219 466,072 417,189 209,114 150,018 24,407 o St. Louis 87,466 100,777 107,452 108,473 113,035 106,641 109,391 112,398 114,561 117,730 118,933 116,889 109,497 68,688 51,755 9,314 w Minneapolis 67,067 69,221 63,017 69,886 75,560 73,248 77,561 81,019 83,596 85,402 84,373 82,807 76,082 41,759 33,464 7,371 H Kansas City 90,496 89,796 100,973 109,548 110,515 109,516 108,956 107,119 110,206 110,926 114,200 114,113 106,405 83,003 55,733 10,636 Dallas 57,878 65,040 61,713 70,813 74,924 73,807 73,590 73,306 76,237 77,082 77,466 73,473 71,276 52,666 32,084 4,667 San Francisco.. 86,991 101,653 113,975 126,803 147,205 144,522 151,176 159,094 169,391 170,939 164,149 175,171 142,718 81,387 57,413 6,468 Total: 1920.2,142,788 2,298,977 2,386,537 2,440,376 2,537,551 2,461,022 2,519,044 2,605,113 2,677,052 2,782,055 2,776,457 2,730,360 2,530,384 1919. 1,734,655 1,763,226 1,861,532 1,919,461 1,973,926 1,842,112 1,867,920 1,801,887 1,777,334 2,073,416 2,145,631 2,157,021 1,908,198 1918. 611,235 531,541 567,475 769,259 902,102 938,442 1,165,649 1,337,701 1,603,153 1,709,766 1,768,746 1,749,156 1,140,053 1917. 20,877 17,900 18,191 24,903 42,710 151,234 147,797 134,988 182,439 313,771 568,352 664,154 190,285 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 22.—Holdings of discounted bills on Dec. SO, 1920, distributed by maturities. [In thousands of dollars.] Maturity. Federal Reserve Bank. Total. Within 15 16 to 30 31 to 60 61 to 90 After 90 days. days. days. days. days. J Boston.. 178,543 96,985 22,964 33,010 25,584 2 New York 904,239 732,257 50,036 89,242 32,704 Philadelphia. 173,563 135,107 8,633 20,011 9,805 7 9 Cleveland 199,333 123,644 33,404 30,371 11,702 212 o Richmond 112,886 58,009 16,777 25,592 12,206 302 Atlanta. 134,149 77,421 14,825 22,946 15,463 3,494 Chicago. 475,869 177,338 53,565 97,762 133,434 13,770 St. Louis 114,218 58,790 18,154 25,470 10,465 1,339 s Minneapolis.. 81,669 34,687 12,877 18,416 11,746 3,943 Kansas City.. 111, 094 43,549 15,183 16,602 14,502 21,258 Dallas 68,885 29,221 9,019 12,138 7,927 10,580 s San Francisco 164,686 65,877 24,969 39,116 26,081 8,643 Total... 2,719,134 1,632,885 280,406 430,676 311,619 63,548 W Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 23,—Holdings of discounted bills on the last Friday of each month during 1920, distributed by maturities. Or [In thousands of dollars.] 00 Maturity. Date. Total. Within 15 16 to 30 31 to 60 61 to 90 Over 90 days. days. days. days. days. I 1920. Jan. 30 ...... 2,174,357 385,117 206,267 309,576 255,093 18,304 Feb. 27 !•. 2,453,511 570,405 205,442 433,705 228,496 15,463 Mar. 26 2,449,230 425,695 294,355 464,333 245,221 19,626 Apr. 30 2,535,071 496,952 262,992 423,922 312,610 38,595 o May 28 2,519,431 460,744 259,574 473,116 264,006 61,991 s June 25 2,431,794 283,470 335,105 469,460 259,993 83,766 July 30 2,491,630 464,290 225,623 426,928 304,257 70,532 Aug. 27 2,667,127 581,792 247,986 491,886 301,240 44,223 Sept. 24 2,704,464 483,052 352,199 506,078 336,732 26,403 Oct. 29 2,801,297 591,408 300,671 512,062 368,446 28,710 Nov. 26 2,735,400 650,801 296,096 501,627 235,181 51,695 Dec. 30 2,719,134 632,885 280,406 430,676 311,619 63,548 Dec. 26,1919 2,194,878 1,484,790 244,890 292,715 152,125 20,358 Dec. 27,1918 1,702,941 1,149,955 266,108 166,877 93,062 26,940 Dec. 28,1917 680,706 355,373 57,367 175,006 83,974 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 24.—Holdings of discounted bills secured by Liberty bonds, Victory notes, and certificates of indebtedness on the last Friday of each month during 1920. [In thousands of dollars.] Secured by- Total (all Liberty bonds. Victory notes. Certificates of indebtedness. Date. classes). a o Member Customers' Member Customers5 Member Customers' I Total. bank collat- bills and Total. bank collat- bills and Total. bank collat- bills and eral notes. notes. eral notes. notes. eral notes. notes. H Jan. 30., 457,892 667,886 438,081 229,805 216,119 130,937 85,182 573,887 571,185 2,702 o Feb. 27. 572,980 756,833 466,555 290,278 247,450 187,966 59,484 568,697 564,956 3,741 Mar. 26. 441,015 742,864 481,832 261,032 276,954 184,631 92,323 421,197 415,448 5,749 Apr. 30. 465,320 690,875 455,133 235,742 295,575 187,959 107,616 478,870 470,384 8,486 May 28. 447,962 674,100 438,992 235,108 275,828 190,809 85,019 498,034 491,655 6,379 June 25. 277,980 617,503 381,804 235,699 292,536 213,351 79,185 367,941 364,127 3,814 July30w 241,017 591,964 390,197 201,767 302,255 226,904 75,351 346,798 341,858 4,940 Aug. 27. 314,830 666,684 451,701 214,983 301,458 224,963 76,495 346,688 340,863 5,825 Sept. 24 220,423 647,251 429,082 218,169 304,973 232,962 72,011 268,199 263,029 5,170 Oct. 29. 203,905 641,552 446,307 195,245 322,474 243,674 78,800 239,879 231,193 8,686 Nov. 26. 192,425 630,254 442,897 187,357 318,233 234,009 84,224 243,938 236,571 7,367 Dec. 30. 141,036 648,352 460,376 187,976 304,686 227,669 77,017 187,998 181,465 6,533 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 25,—Holdings of discounted bills on December 30, 1920, distributed by classes. [In thousands of dollars.] Member bank col- Customers' lateral notes. paper Total (all secured by- Commercial Agricul- Live-stock Trade ac- Bankers'ac- Federal Reserve Bank. classes). Govern- Secured by- paper n. e. s. tural paper. ceptances. ceptances. ment war Govern- Otherwise paper. obligations. ment war secured. obligations. Boston 178,543 23,996 54,745 99,620 128 54 New York.... 904,239 123,662 322,264 444,845 257 1,800 11,411 Philadelphia.. 173,563 39,597 76,080 50 57,069 388 229 150 Cleveland 199,333 8,094 87,330 242 97,744 735 158 3,522 1,508 Richmond— 112,886 5,414 37,874 935 57,350 9,164 87 2,062 Atlanta 134,149 13,714 48,258 294 52,567 15,497 1,335 2,256 228 Chicago 475,869 24,998 117,625 4,704 270,377 52,695 4,534 St. Louis 114,218 7,517 37,190 45 62,169 3,259 1,637 1,518 Minneapolis.. 81,669 5,709 12,297 8,272 1,277 14,527 39,370 217 Kansas City.. 111,094 7,808 22,204 749 31,355 14,285 32,555 2,109 29 Dallas 68,885 3,029 12,008 764 21,506 14,632 16,619 268 59 San Francisco 164,686 7,988 41,635 1,852 78,727 17,706 12,034 2,784 1,960 Total... 2,719,134 271,526 869,510 17,907 1,274,606 143,145 103,795 21,427 17,218 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 26.—Holdings of discounted bills on the last Friday of each month during 1920, distributed by classes. [In thousands of dollars.] Member bank collateral Customers' notes. Last Friday in- Total (all s m e G c p e u o n a r v t p e e e d w r r n a b - r y G S o e v cu e r r e n d m b en y t Otherwise p C a o p m er m n e . r c e. i a s l . A p t g a u r p i r c e a u l r. l- Li p v a e p -s e t r o . ck c T e r p a t d a e n c a e c s - . B c a e n p k ta e n r c s e 'a s c . - O obligations. war secured. O obligations. tzj O H 1920. O January 2,174,357 317,688 140,204 6,427 608,283 23,212 33,693 24,886 19,964 February 2,453,511 353,504 219,476 3,744 752,006 30,125 37,070 18,508 39,078 March 2,449,230 359,106 081,909 6,248 855,600 29,321 45,344 20,813 50,889 April 2,535,071 351,845 113,475 4,130 887,051 44,389 61,993 23,937 48,251 May 2,519,431 326,473 121,489 3,154 863,804 63,537 77,154 21,979 41,841 June 2,431,794 315,835 962,145 2,923 937,645 83,193 84,845 20,034 25,174 July 2,491,630 281,766 959,251 3,166 1,015,599 106,611 95,909 19,498 9,830 August 2,667,127 297,442 1,017,388 3,819 1,103,711 117,050 99,228 19,476 9,013 September 2,704,464 295,373 925,050 8,877 1,220,588 120,998 103,426 22,080 8,072 October 2,801,297 282,733 921,172 3,649 1,318,400 131,528 109,121 23,155 11,539 1C0 November 2,735,400 278,946 913,479 7,299 1,260,326 136,315 105,246 20,961 12,828 December 2,719,134 271,526 869,510 17,907 1,274,606 143,145 103,795 21,427 17,218 December, 1919 2,194,878 352,589 1,157,765 8,255 576,025 24,825 26,243 33,697 15,479 w December, 1918 1,702,938 362,840 1,037,348 21,615 208,431 29,384 27,335 15,985 w Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 27,—Average daily holdings of purchased bills, by months during 1920. [In thousands of dollars.] to Federal Reserve Bank. J a a r n y u . - Fe a b ry r . u- March. April. May. June. July. August. te S m ep b - er. O b c e t r o . - Novem- Decem- Y 19 e 20 a . r Y 19 e 19 a . r Y 19 e 18 a . r Y 19 e 17 a . r Boston 32,170 28,548 16,283 23,399 33,174 31,900 34,004 21,682 27,779 35,836 27,605 19,977 27,692 25,350 22,217 15,464 New York. 201,306 208,504 210,929 154,852 167,366 183,359 150,513 116,083 96,822 85,859 88,757 94,124 146,371 78,282 133,096 55,315 Philadelphia... 6,673 7,330 5,704 3,670 2,572 1,965 9,428 12,891 15,319 17,715 20,890 13,487 9,810 1,581 18,375 14,917 Cleveland 64,168 73,589 65,402 58,92G 60,582 55,713 53,823 59,878 47,820 45,563 36,992 27,068 54,067 44,148 27,175 15,348 Richmond 11,782 10,213 10,142 11,358 10,603 8,865 5,740 6,977 7,401 5,923 5,542 5,408 8,320 7,687 6,411 6,235 Atlanta , 11,462 15,257 11,398 7,792 6,142 4,982 3,875 3,065 1,624 2,377 2,277 2,914 6,093 8,038 7,200 3,068 Chicago 85,060 72,782 65,029 60,448 54,448 54,610 48,959 43,029 46,144 45,930 35,540 24,842 53,003 49,457 29,575 12,691 o St. Louis 18,602 10,060 10,458 4,659 2,801 3,637 3,046 2,452 1,759 1,378 1,596 1,430 5,154 12,939 5,407 5,384 Minneapolis— 8,921 4,246 5,438 5,824 4,827 4,039 3,400 1,747 1,159 1,351 1,431 1,363 3,648 20,683 4,851 4,703 Kansas City 13,210 9,333 3,999 766 649 1,773 2,665 3,927 3,613 2,781 2,179 1,885 3,888 7,811 3,707 5,346 Dallas 5,839 1,532 1,380 1,269 1,604 708 575 729 626 897 557 223 1,334 2,366 4,289 4,074 San Francisco.. 116,474 105,064 75,076 86,783 71,752 49,633 47,593 53,001 63,798 58,371 55,155 51,280 69,366 66,889 26,119 9,501 Total: 1920. 575,667 546, 458 481,238 419,746 416,520 401,184 363,621 325,461 313,864 303,981 278,521 244,001 388,746 1919. 280,732 276,087 262,787 208,905 189,768 246,158 362,298 371,091 353,936 340,189 455,057 549,959 325,231 1918. 265,590 289,072 318,778 311,984 278,464 238,507 209,174 217,109 249,751 360,451 378,036 344,329 288,422 1917. 111,575 117,865 99,026 78,812 99,517 164,355 198,703 162,252 167,403 178,680 195,635 250,438 152,046 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 28.—Holdings of purchased bills on Dec. SO, 1920, distributed by maturities. [In thousands of dollars.] Maturity. Maturity. Federal Reserve Bank. Total. 1 W 5 i d t a h y in s. 1 d 6 a t y o s 3 . 0 31 d a to y s 6 . 0 m 61 o to n d t a 3 h y s s . Federal Reserve Bank. Total. 1 W 5 i d th a i y n s. 1 d 6 a t y o s 3 . 0 31 d a t y o s 6 . 0 m 61 o t o n d a t 3 h y s s . Boston 19,532 8,729 4,836 5,045 922 St. Louis 1,146 560 191 325 70 New York... 109,902 39,372 29,869 32,745 7,916 Minneapolis... 1,413 166 414 364 Philadelphia 12,893 3,863 972 5,293 2,765 Kansas City... 2,017 352 202 1,395 Cleveland... 26,581 8,748 7,355 7,875 2,603 Dallas 247 60 65 83 Richmond.. 5,252 970 1,948 1,509 825 San Francisco. 47,266 17,310 10,152 13,829 5,975 Atlanta 3,492 715 668 1,172 937 Chicago 25,961 6,185 8,073 7,170 4,533 Total... 255,702 87,030 64,745 76,805 27,122 No. 29.—Holdings of purchased bills on the last Friday in each month during 1920, distributed by maturities. [In thousands of dollars.] Maturity. Maturity. Total. 1 W 5 i d t a h y in s. 1 d 6 a t y o s . 30 31 d a to y s 6 . 0 m 61 o t o n d t a 3 h y s s . Total. 1 W 5 i d t a h v i s n . 1 d 6 a t y o s 3 . 0 31 d a to y s 6 . 0 m 61 o t o n d t a 3 h y s s . 1920 1920. Jan. 30 561,313 115,267 127,669 249,208 69,169 Sept. 24 307,624 95,041 77,418 106,047 29,118 Feb. 27 531,367 135,779 113,915 197,400 84,273 Oct.29 298,375 115,046 73,439 82,560 27,330 Mar.26 451,879 127,119 88,629 171,711 64,420 Nov.26 247,703 78,663 62, 111 90,601 16,328 Apr. 30 407,247 90,738 82,962 171,583 61,964 Dec. 30 255,702 87,030 64, 745 76,805 27,122 May28 418,600 117,630 72,806 182,153 46,011 June 25 399,185 120,799 83,588 152,918 41,880 Dec. 26,1919 585,212 123,723 100,061 209,280 152,148 July 30 345,305 99,100 86,034 129,544 30,627 Dec. 27,1918....... 303,673 104,435 73,914 104,880 20,444 Aug. 27 321,965 110,768 70,865 105,240 26,092 Dec. 28. 1917 275,366 40,321 61,177 105,132 68,736 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 30,—Holdings of purchased bills on Bee. 31, 1920, distributed by classes of accepting institutions. [In thousands of dollars.] Bank acceptances. Trade acceptances. Federal Reserve Bank. Total. Total. M b e a m n b k e . r a b i N n n e o g d r n c m b b o a a r e n p n m o k k - - - P b r a i n v k a s t . e b F r b o a a a r n n e n c d i k h gn es Total. Domestic. Foreign. rations. agencies. Boston 20,678 20,678 17,736 1,512 453 977 New York 113,740 112,456 67,622 19,481 12,288 13,065 1,284 505 779 Philadelphia 12,689 12,689 8,320 2,406 1,572 391 § Cleveland . 27,211 27,147 14,602 4,719 3,551 4,275 64 64 Richmond 5,048 5,048 5,048 Atlanta 3,571 3,571 3,557 14 Chicago . .. . . 25,741 25,741 22,488 1,614 989 650 St. Louis.. . 1,199 1,199 814 323 62 Minneapolis . .. 1,313 1,313 1,113 50 150 Kansas City 2,171 2,171 2,171 Dallas 247 247 175 72 San Francisco.. . .. 46,798 46,618 25,741 8,255 5,990 6,632 180 180 Total- Dec. 31 1920 260,406 258,878 169,387 38,374 24,905 26,212 1,528 505 1,023 w Dec. 31,1919 574,103 566,369 405,339 65,334 55,537 40,159 7,734 2,540 5,194 o Dec. 31,1918 292,197 285,273 238,257 13,187 20,385 13,444 6,924 2,536 4,388 Dec. 31,1917 273,236 266,853 227,717 11,342 20,137 7,657 6,383 Dec. 31,1916 1 125,739 121,154 66,803 36,127 18,224 4,585 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 31.—Holdings of purchased bills at the end of each month in 1920, distributed by classes of accepting institutions. [In thousands of dollars.] Bank acceptances. Trade acceptances. Nonmem- Foreign Month ending- Total. Total. M b e a m nk b . er a i b n n e g d r c b b o a a r n p n o k k - - P b r a iv n a k t . e br b a a n a n n c d k hes Total. Domestic. Foreign. O O rations. agencies. g 1920. O January 562,010 555,522 383,375 74,726 61,218 36,203 6,488 1,893 4,595 February 536,205 530,825 364,940 72,227 60,218 33,440 5,380 580 4,800 o March 419,922 413,784 282,339 56,779 51,012 23,654 6,138 572 5,566 April 407,247 396,859 270, 808 46,292 48,549 31,210 10,388 600 9,788 May 420,192 411,427 275,369 59,141 47,448 29,469 8,765 1,542 7,223 June 384,551 372,541 255,564 56,474 38,647 21,856 12,010 1,939 10,071 July 346,408 339,646 234,368 47,112 36,087 22,079 6,762 1,638 5,124 August 307,104 299,960 202,868 44,130 31,225 21,737 7,144 1,334 5,810 September 301,211 298,223 200,976 41,948 29,788 25,511 2,988 207 2,781 October 299,487 296,070 194,908 39,636 33,662 27,864 3,417 644 2,773 November 240,622 238,516 153,302 33,502 26,010 25,702 2,106 515 1,591 December 260,406 258,878 169,387 38,374 24,905 26,212 1,528 505 1,023 Gi Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 32,—Average daily holdings oj United States securities, by months during 1920. [In thousands of dollars.'] Federal Reserve Bank. J a a r n y u . - F a e r b y ru . - March. April. May. June. July. August. Sep- to O b c e - r. No b v e e r. m- De b c e e r m . - Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . Y 19 e 1 a 8 r . Y 19 e 1 a 7 r . Boston 23,249 23,419 22,398 25,551 22,390 24,002 23,655 23,344 30,315 24,098 25,853 33,546 25,152 18,217 3,048 3,378 New York 74,704 09, 926 80,722 95,358 74,707 104,414 83,049 71,683 93,042 73,603 73,838 83,208 82,036 74,104 50,390 14,374 Philadelphia 32,430 32,857 32,128 33,092 32,217 34,525 35,916 35,328 34,289 33,287 38,450 33,022 33,956 23,203 7,135 4,268 Cleveland 27,722 25,197 30,527 20,150 24,203 27,222 24,019 24,277 31,546 24,244 27, 043 35,420 27,401 20,389 17,722 11,315 Richmond 14,204 13,805 13,914 14,528 13,494 13,494 13,945 13,520 13,494 13,024 13,761 13,495 13,773 9,206 3,392 3,672 Atlanta 16,099 15,428 16,420 15,782 15, 783 15,883 15,910 15,781 15,782 15, 300 16,309 16,399 15, 909 11,289 3,740 4,511 Chicago 50, 585 40,770 52,173 44,120 44,121 45,218 44,351 44,190 44,150 44,908 40,380 49,139 40,865 35,003 11,500 15,894 O St. Louis 18,540 18,588 18,800 18,917 18,420 19,213 18,480 18,404 18,073 18,488 18,519 17,708 18,566 15,288 3,027 4,207 Minneapolis 9,147 8,607 11, 219 9,343 8,000 9,457 8,030 8,599 8,009 8, 013 8, 004 8,727 9,026 8,677 3,814 3,833 Kansas City 25,337 20,400 24,-875 22,203 21,928 22,247 21,774 21,714 21,700 21,791 21,092 21,728 22,772 17,900 12,009 11,079 Dallas 12,612 12,011 10,492 12,033 12,260 13,420 12,486 12,208 12,299 12,209 12,313 12,376 12,840 10,133 0,040 0,045 San Francisco... 14,802 14,945 18,487 14,147 13,588 IS, 290 15,482 14,108 14,000 13,822 17,049 14,372 15,258 10,524 5,089 5,717 Total: 1920 325,497 308,019 344,161 331,824 301,789 347,445 318,309 I 303,288 338,505 304,053 320,417 339,140 323,554 1919 198,123 180,372 194,103 213,358 228,080 235,722 248,045 209,048 340,240 295,725 307,115 327,244 254,053 1918 148,250 180,516 235,961 155,588 84,040 97,090 04,402 52,105 07,085 124,443 120,789 204,807 128,232 1917 55,093 48,273 49,247 111, 029 118,387 112,030 73,529 73,866 88,097 110,808 117,941 100,083 88,353 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. S3.—Holdings of each class of United States securities on Dec. SI, 1920. United States certificates United States bonds. of indebtedness. Total Fede B ra a l n R k e . serve se U S c h n t u e a i r l t t i d e e t . i s d es Total. 2 c o p o f e n r 1 s 9 c o 3 e l 0 s n . t 1 P 2 9 a 3 p n 6 e a o - r 1 m f c 9 3 e a 8 n s . t j l 1 o 4 c 9 a e 2 p n n 5 e t o r . f lo 3 1 c a 9 e p n 6 n 1 e o t . r f e 3 b o 1 p o n 9 e n v 4 r d 6 e s - r c 4 s e o 7 o n f . n t L 3 l i c o £ b e a e n p n r t e t . y r 4 L p l i e o b r a e n c rt e . y nt L 4 l i c o | b e a p e n n e r t t r . y V n i o c t t e o s r . y Total. c o 2 t i R f o r p c e F e s u s e r e l e c a d c r u t e v e i r r e o n e a n t l All other. Bank notes. O o Boston 063,000 $538,500 $529,000 $9,500 $5,000 $21,519,500 $21,436,000 $83,500 New York 184,300 1,468,300 1,255, 212, 900 50,000 59, 666,000 59,276,000 390,000 o Philadelphia 895,300 1,433,800 $100 549, $48,100 836,400 30,461,500 30,280,000 181,500 M Cleveland 642,650 833,400 414, 16,200 402,400 10,250 23,799,000 23,799,000 a Richmond 495,300 1,233,300 $915,100 j 237,000 42,400 38,800 12,262,000 12,260,000 2,000 Atlanta 787,450 113,650 I 10,300 49,600 53,750 2,800 16,671,000 16,664,000 1 7,000 o Chicago 101,600 4,489,600 1,862,500 367,300 j$l,768,000 $400 j 427,400 13,750 50,250 39,612,000 39,612,000 St. Louis 175,900 1,153,400 100 300 16,022,500 15,568,000 | 454,500 o Minneapolis 595,560 115,560 260 500 | 114, 8,480,000 8,480,000 ' Kansas City 688,350 8,867,250 7,155,000 20,000 825,000 838, 20,350 [ 8,400 600 12,820,500 12,820,000 500 WP Dallas 279,250 3, 975,100 2,450,900 281,500 1,233, 600 | $1,100 7,400 4,150 8,300,000 8,300,000 San Francisco 117,950 2,087,450 1,883,750 6,050 ! 197,650 11,030,500 10,880,000 | 150,500 Total: 1920.... 287,026,610 26,309,310 14,267,350 906,160 2,593,000 900 6,526,3300 197,050 j 1,100 1,817,450 72,800 260, 644,500 259,375,000 11,263,-500 Tfl 1919 300,106,685 26,836,110 15,053,700 927,160 2,593,000 900 6,526,3300 114,900 I 1,007,050 j 613,100 67,575 273,203,000 259,375,000 213,828,000 1918 238,562,510 27,859, 010 15,053,700 927,160 2,593,000 900 6,526,300 503,600 | 1,136,500 1,117,850 210,703,500 114,008,000 96,695,500 w 1917.... 121,689,682 ^51,847,182 15,784,050 1,412,600 5,177,450 900 6,526,400 3,612,650 |ll, 769,292 | 69,842,500 5 26,792,000 43,050,500 w Amount of Ur ited States bonds with circulation privilege: Amount of United States securities without circulation privilege: > 2 per cent consols and Panamas $15,173,510 3 p er cent loan of 1961 $900 4 per cent loan of 1925 2,593,000 3 p er cent conversion bonds . 6,526,300 3 J per cent Liberty loan 197,050 Total 17,766,510 4 per cent Liberty loan 1,100 41 per cent Liberty loan . 1,817,450 31 per cent Victory notes 10,100 4| per cent Victory notes 62,700 2 p er cent certificates of indebtedness « . 259,375,000 Ot her Treasury certificates of indebtedness . 1,269,500 Total . 269,260,10~0 1 Exclusive of a $1,000 Treasury Savings Certificate of value of $870 on Dec. 31,1920. 4 Includes $7,563,840 of 3 per cent loan of 1918. 2 Exclusive of a $1,000 Treasury Savings Certificate of value of $846 on Dec. 31,1919. 5 Three per cent 1-year Treasury notes. Ci 3 Includes $9,301,000 of 3 per cent 1-year Treasury notes. e Circulation privilege for .Federal Reserve Bank notes only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 34.—Average daily holdings oj each class oj earning assets, earnings thereon, and annual rates oj earnings during 1920 and 1919. [Amounts in thousands of dollars.] 00 Average daily holdings of— Earnings on— Federal Reserve Bank. All class a e s s s e o ts f . earning Discounted bills. Purchased bills. United States securities. All clas a s s e s s e ts o . f earning Discounted bills. 1920 1919 1920 1919 1920 1919 1920 1919 1920 1919 1920 1919 Boston 222,644 185,953 169,800 142,386 27,692 25,350 25,152 18,217 12,199 7,450 10,032 6,003 New York.... 1,075,841 879,281 847,434 726,895 146,371 78,282 82,036 74,104 60,138 35,151 49,839 29,936 Philadelphia.. 233,888 218,039 190,122 193,195 9,810 1,581 33,956 23,263 11,737 8,551 10,420 7,988 Cleveland 261,278 191,186 179,810 126,649 54,067 44,148 27,401 20,389 14,238 7,675 10,571 5,342 Richmond 126,204 111,439 104,111 94,546 8,320 7,687 13,773 9,206 6,675 4,637 5,921 4,100 Atlanta 137,942 U07,238 115,940 87,910 6,093 8,038 15,909 11,289 7,347 24,331 6,688 3,735 Chicago 517,057 293,574 417,189 209,114 53,003 49,457 46,865 35,003 29,711 11,794 25,727 8,916 Bt. Louis 133,217 96,915 109,497 68,688 5,154 12,939 18,566 15,288 7,047 3,803 6,382 2,918 Minneapolis... 88,756 71,119 76,082 41,759 3,648 20,683 9,026 8,677 5,108 2,926 4,734 1,829 Kansas City... 133,065 108,774 106,405 83,003 3,888 7,811 22,772 17,960 7,159 4,635 6,441 3,889 Dallas 85,450 65,165 71,276 52,666 1,334 2,366 12,840 10,133 4,389 2,786 4,045 2,444 San Francisco. 227,342 158,800 142,718 81,387 69,366 66,889 15,258 10,524 12,473 6,777 8,260 3,668 I Total.... 3,242,684 2,487,483 2,530,384 1,908,198 388,746 325,231 323,554 254,053 178,221 100,516 149,060 80,768 W o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Earnings on- Annual rates of earnings on— Purchased bills. United States securities. All clas a se s s s e o ts f . earning Discounted bills. Purchased bills. United States securities. 1920 1919 1920 1919 1920 1019 1920 1919 1920 1919 1920 1919 G Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. P Boston 1,613 1,078 554 309 5.48 4.01 5.91 4.21 5.81 4.25 2.20 2.03 g New York 8,323 3,327 1,976 1,888 5.59 4.00 5.88 4.12 5.69 4.25 2.41 2.55 £ Philadelphia.. 574 67 743 495 5.02 3.92 5.48 4.13 5.85 4.24 2.19 2.13 g Cleveland 3,064 1,883 603 450 5.45 4.02 5.88 4.22 5.67 4.27 2.20 2.21 t^ Richmond 477 352 277 185 5.29 4.16 5.69 4.34 5.74 4.57 2.01 2.01 o Atlanta 338 367 321 229 5.33 4.03 5.77 4.25 5.55 4.57 2.01 2.03 ^ Chicago 2,989 2,142 995 736 5.75 4.02 6.17 4.26 5.64 4.33 2.12 2.10 hrj St. Louis 274 564 391 321 5.29 3.92 5.83 4.25 5.30 4.30 2.11 2.10 g Minneapolis... 192 883 182 214 5.76 4.11 6.22 4.33 5.26 4.27 2.02 2.46 |j Kansas City... 212 341 506 405 5.38 4.23 6.05 4.68 5.45 4.36 2.22 2.26 S Dallas 73 113 271 229 5.14 4.28 5.67 4.64 5.49 4.79 2.11 2.26 ^ San Francisco. 3,891 2,870 322 239 5.49 4.26 5.79 5.41 5.61 4.29 2.12 2.27 £ Total... 22,020 13,987 7,141 5,761 5.50 4.04 5.88 4.23 5.66 4.30 2.21 2.26 fe: i Including $1,410 average daily holdings of municipal warrants. 2 Including $85 earnings on municipal warrants. > CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

170 ANNUAL REPORT FEDERAL RESERVE BOARD. AVERAGE DAILY HOLDINGS Of DISCOUNTED BILLS AND OF OTHER EARNING ASSETS BY EACH FEDERAL RESERVE BANK s DURING 1319 Other CountingJkselz 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONDITION OF FEDERAL RESERVE BANKS. 171 AVERA6EDAILYHOLDINGS OF DISCOUNTED BILLS AND OF OTHER EARNING ASSETS BY EACH FEDERAL RESERVE BANK I DURIffiWffl \ to I u>ced$Ms OOier&uTungJissets 1100 1100 \IOOO 1000 \300 900 eoo 600 ?oo 700 600 600 500 500 400 400 300 300 200 200 100 100 0 I 0 1 1 i I <3 15 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 35.—Annual rates (per cent) oj earnings on total earning assets, by months during 1920. to Federal Reserve Bank. u J a a r n y - . ru F a e r b y - .March. April. May. June. July. g A u u st - . t S b e e e m p r. - - O b c e t r o . - v b N e e m o r - . - c b D e e m e r - . - Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . Y 19 e 1 a 8 r . Y 19 e 1 a 7 r . Boston 4.30 4.79 5.11 5.16 5.28 5.44 5.73 5.76 5.91 6.11 6.06 5.98 5.48 4.01 4.02 3.69 New York . .. 4.49 4.95 5.17 5.16 5.35 5.62 5.85 5.99 5.97 6.12 6.14 6.14 5.59 4.00 3.97 3.15 Philadelphia 4.36 4.78 4.90 5.01 5.03 5.04 5.05 5.07 5.20 5.32 5.20 5.24 5.02 3.92 4.19 3.32 Cleveland 4.48 4.88 5.07 5.23 5.22 5.36 5.50 5.56 5.82 6.07 5.93 5.87 5.45 4.02 4.14 3.29 Richmond . .... 4.43 4.91 5.13 5.22 5.28 5.46 5.51 5.56 5.44 5.45 5.51 5.52 5.29 4.16 4.29 3.47 Atlanta . ... 4.39 4.88 5.09 5.18 5.28 5.33 5.42 5.62 5.26 5.73 5.74 5.69 5.33 4.03 4.17 3.55 Chicago 4.40 4.89 5.16 5.43 5.50 5.73 6.03 6.13 6.20 6.24 0.24 6.42 5.75 4.02 4.19 3.35 St. Louis 4.33 4.76 5.03 5.19 5.20 5.10 5.50 5.49 5.24 5.36 6.15 5.92 5.29 3.92 4.17 3.36 Minneapolis 4.57 4.86 5.14 5.37 ' 5.47 5.78 6.23 6.31 6.25 6.26 6.17 6.22 5.76 4.11 4.45 3.50 Kansas City .. . . 4.62 4.84 5.07 5.29 5.53 5.50 5.76 5.33 5.39 5.71 5.65 5.75 5.38 4.26 4.35 3.20 Dallas 4.43 4.50 4.68 5.04 5.29 5.17 5.51 5.28 5.16 5.24 5.57 5.39 5.14 4.28 4.30 3.41 San Francisco 4.64 4.89 5.10 5.42 5.58 5.57 5.68 5.74 5.77 5.78 5.72 5.78 5.49 4.26 4.41 3.44 All banks— 1920 4.46 4.88 5.12 5.23 5.36 5.51 5.72 5.81 5.81 5.94 5.98 5.98 5.50 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 1917 .. 2.90 3.03 3.14 2.83 2.93 3.08 3.34 3.37 3.41 3.37 3.37 3.59 3.31 W o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISCOUNT AND OPEN-MARKET OPERATIONS OF FEDERAL RESERVE BANKS. No. 36.— Volume of discount and open-market operations oj each Federal Reserve Bank during 1920, distributed by classes. [In thousands of dollars.] Acceptances bought in open Bills discounted for member banks. United States securities. market. Federal Reserve Bank. T c o la t s a s l e ( s a ). ll Total. c M o n b l e o l a a m t n t e e b k s r e . a r l c C n u l . o i e l v m t . e u s m - r . s a , t e l o a r a c g c k i n r a i d - l B a a a c n n c c k e e p e s t r . - s' a a T c n c r c a e e d p s e t . - Total. Bankers'. Trade. Total. Bonds. V n i o c t t e o s r . y C o e e f r d i ti n n f d i e c s e a s b t . e t- s o o d paper. Boston. 5,734,164 4,876,556 3,878,390 971,373 22,129 4,664 304,445 304,445 553,163 22 5 553,136 New York 56,518,320 50,539,429 31,160,071 19,262,449 70,654 46,255 1,697,330 1,637,061 60,269 4,281,561 231 4,281,330 O Philadelphia 6,218,922 5,820,258 4,093,358 1,717,982 4,127 4,791 41,232 41,232 357,432 49 357,383 Cleveland 4,068,861 2,895,070 2,279,675 579,003 10,015 23,377 294,602 293,811 791 878,589 878,589 Richmond 3,482,036 3,346,322 2,907,400 420,186 12,676 51,712 51,712 84,002 84,002 k Atlanta 2,290,420 2,231,946 1,513,774 697,951 6,338 13,883 39,577 39,577 18 897 18,897 Chicago 7,498,467 6,305,492 3,697,008 2,550,099 32,095 26,290 345,021 345,021 847 954 12 847,942 St. Louis.. .. 2,548,548 2,438,041 1,349,766 1,067,680 7,124 13,471 36,019 30,019 74,488 74,488 Minneapolis 1,113,147 953,392 495,587 454,667 3,138 18,059 18,059 141,096 141,696 Kansas City 1,813,196 1,667,943 1,097,144 560,289 368 10,142 17,174 17,174 128,079 128,079 o Dallas 1,465,230 1,280,178 995,935 277,869 704 5,070 8,348 8,348 176,704 9 4 176,691 San Francisco 3,776,237 2,905,647 2,097,279 809,960 33,608 24,800 364,845 351,278 13,567 445,745 445,745 Total—1920 9Q, 527,548 85,320,874 55,565,447 29,376,108 187,162 192,157 3,218,364 3,143,737 74,627 7,988,310 323 9 7,987,978 t< 1919 86,737,007 79,173,970 72,548,008 6,415,899 71,643 138,420 2,825,177 2,788,019 36,558 4,737,920 1,329 ; 428 4,736,163 O 1918 147,414,531 39,752,934 33,007,788 6,537,833 19,940 187,373 1,809,539 1,748,503 61,036 5,850,348 73,996 : 5,776,352 xn 1 Including $1,710,000 of municipal warrants. CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No, 37.— Volume of discount and open-market operations, by months during 1920, distributed by classes. [In thousands of dollars.] Acceptances bought in open Bills discounted for member banks. market. United States securities. Month. T c o l t a a ss l e ( s a ) l . l Total. c M o b l e l a m a n t b k er e a r l c C n u l . i o v l e m t e u . - m r s s a . t e o l a r a c g c n k i r a i d - l B a a a c n n c c k e e p e s t r . - s' a a T c n r c c a e e d p s e t . - Total. Bankers'. Trade. Total. Bonds. V n i o c t t e o s r . y C o e f e r d i t n i n f d i e c s e a s b t . e t- s notes. paper. January... 7,186,317 6,241,271 5,259,617 947,908 17,226 16,520 302,452 299,746 642, 218 642,376 February.. 7,122,048 (>, 517,439 5,352,127 1,125,700 28,611 11,001 300,308 296,959 304, 304,296 March 8,770,099 6,970,331 5,120,822 1,791,592 34,534 23,383 303,360 298,459 1,496, 1,496,387 April 7,474,478 6,229,740 4,567,215 1,619,057 28,172 15,296 247,594 240,704 997, 997,143 May G, 452,944 6,135,984 4,352,059 1,752,130 15,254 16,541 274,237 270,498 42, 42,723 June 7,800,839 6,336,642 4,412,943 1,900,330 9,431 13,938 285,752 261,333 1,178, 1,178,445 July 7,518,907 6,714,924 4,392,077 2,302,321 7,069 13,457 219,464 209,296 584, 584,519 August 8,366,572 7,982,524 4,764,202 3,198,821 5,490 14,011 259,708 247,438 124, 124,321 September. 8,447,267 7,298,972 4,055,539 3,218,170 8,103 17,160 257,989 255,858 890, 890,306 October... 8,013,276 7,548,456 4,158,198 3,360,515 10,354 19,389 281,832 280,162 182, 182,927 November. 8,715,061 7,882,933 4,205,752 3,648,763 13,275 15,143 231,840 230,832 600, 600,282 December.. 10,659,740 9,461,658 4,924,896 4,510,801 9,643 16,318 253,828 252,452 944, 944,253 Total 96,527,548 85,320,874 55,565,447 29,376,108 187,162 192,157 3,218,364 3,143,737 74,627 7,988,310 323 7,987,978 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 38.— Volume of total discount and open-market operations of each Federal Reserve Bank, by months during 1920, [In thousands of dollars.] Total. Feder B al a n R k e . serve January. Fe a b ry ru . - March. April. June. July. August. Se b p e t r e . m- October. No b v e e r. m- D b ec e e r m . • - 1920 1919 Boston 405,784 489,235 493,475 458,459 451,325 494,121 371,816 468,251 477,281 413,248 553,670 057,499 5,734,164 5,096,885 2,039,592 O o New York ,763,5524,072,5394,574,3244,013,612 3,375,9284,348,461 4,543,008 5,280,564 5,194,087 5,136,230 5,384,388 6,831,626 56,518,319 46,793,873 30,509,110 d Philadelphia 656,620 571,917 544,619 596,705 461,997 525,833 551,630 558,633 429,038 407,303 502,465 412,162 6,218,922 10,803,405 1,9^3,467 3 Cleveland 357,782 329,9P0 484,519 333,466 266,231 338,070 231,866 224,380 323,431 199,583 335,978 643,565 4,068,861 3,672,224 1,766,465 Richmond 323,244 277,407 351,353 327,562 296,817 290,865 262,500 271,093 284,902 248,615 252,647 295,030 3,482,035 4,224,360 2,263,334 Atlanta 157,947 148,445 163,918 160,846 177,269 168,730 185,617 209,481 209,773 230,844 241,007 236,543 2,290,420 2,086,263 1,016,113 Chicago 739,687 562,065 911,115 553,987 541,478 630,783 527,059 547,984 656,961 535,298 592,147 699,903 7,498,467 5,696,847 3,536,026 St. Louis 203,600 177,183 288,700 277,723 208,541 208,560 195,462 207,494 212,634 210,673 180,062 177,916 2,548,548 2,206, 922 1,117,801 Minneapolis 74,713 68,294 145,260 110,890 89,921 121,504 76,082 81,749 76,386 83,998 83,331 101,019 1,113,147 872,450 543,785 Kansas City 148,413 135,647 178,502 145,170 134,584 153,692 151,738 150,307 161,254 169,348 141,650 142,890 1,813,195 1,613,475 859,342 Dallas. 83,947 85,350 210,928 117,952 111,446 148,720 115,487 111,638 125,574 114,961 125,347 113,882 1,465,232 1,256,774 635,747 San Francisco 271,028 203,976 423,387 378,106 337,407 371,500 306,642 254,997 295,946 263,175 322,369 347,705 3,776,238 2,413,589 1,148,749 Total: 1920..7,186,3177,122,0488,770,100 7,474,4786,452,944 7,800,839 7,518,907 8,366,5718,447,267 8,013,276 8,715,061 10,659,740 6,527,548 3 1919..7,025,3365,454,8195,706,085 6,125,8847,620,107 i, 771,913 7,692,825 6,808,7478,801,292 8,468,03.2 7,812,081 8,449,946 86,737,067 1918..1,525,985 1,443,7951,993,080 2,605,7203,309,207 3,655,664 3,490,037 3,955,6124,953,969 6,793,019 5,569,709 8,118,734 47,414,531 9 o ui Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No, 39.— Volume of bills discounted by each Federal Reserve Bank during 1920, by months and maturities. [In thousands of dollars.] Federal R m es a e t r u v r e i ty B . ank and Total. January. February. March. April. May. June. July. August. September. October. November.December. All Federal Reserve Banks combined: Within 15 days 75,914,215 5,609,280 5,899,599 6,103,801 5,461,473 5,410,584 5,606,915 6,020,225 7,138,998 6,348,625 6,662,034 7,062,538 8,530,143 16 to 30 days 1,327,285 83,110 70,826 103,-157 102,613 99,399 92,351 76,712 116,105 133,053 132,437 150,374 167,148 31 to 60 days 2,774,388 178,345 190,537 203,610 231, C35 204,132 207,479 190,306 254,421 270,715 268, 243 253,087 261,812 61 to 90 days 4,953,099 359, 201 346,148 419,826 403,718 380,371 378,216 387, C33 453,918 525,017 456,231 382,097 460,723 91 to 180 days 351,887 11,334 10,330 19,931 30,301 41,498 51,681 39,CS8 19,081 21,561 29,512 34,838 41,832 Total 85,320,874 6,241,270 6,517,440 6,970,331 6,229,740 6,135,984 6,336, 642 6,714, 924 7,982,523 7,298,971 7,548, 457 7,882,934 9,461,658 Boston: Within 15 days 4,059,551 316,772 357,502 308,215 297,500 359,677 344,125 237,447 344,443 310,300 282,415 373,546 467,549 16 to 30 days 153,606 4,764 12,034 13,702 7,574 15,349 15,752 8,672 21,311 21,891 9,511 13,934 8,452 31 to 60 days 328,773 13,960 27,390 28,384 15,274 15,379 33,938 20,298 29,497 34,855 27,904 49,978 31,910 61 to 90 days 334,301 27,809 39,074 50,701 25,687 30,723 22,848 20,0C3 21,520 18,081 17,531 18,701 41,497 91 to 180 days 325 291 4 2 22 4 1 1 Total 4,876,556 363,305 436,606 461,413 340,039 421,130 416,685 286,484 416,777 385,188 337,302 456,159 549,408 New York: Within 15 days 48,698,427 3,233,984 3,653,118 3,604, ?A J 3,022,889 3,033,398 3,345,215 3,966,736 4,888,920 4,238,096 4,720,503 4,946,722 6,037,400 16 to 30 days 300,214 15,768 11,787 17,039 16,875 11,215 10,209 9,357 29,372 27,821 45,710 45,545 59,516 31 to 60 days 413,386 51,317 33,795 52,174 23,252 33,592 20,458 22,450 37,192 25, £06 58,011 17,517 37,722 61 to 90 days 1,127,003 152,950 99,592 82,017 102,792 102,809 49,229 45,924 136,122 119,656 84,056 78,592 73,264 91 to 180 days 399 32 27 190 50 30 12 3 35 14 6 Total 50,539,429 3,454,051 3,798,319 3,755,960 3 165,858 3.181.044 3,425,123 4,044 470 5,091,647 4,412,393 4,914,286 5,088,376 6,207,902 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Philadelphia: "Within 15 days 5,400,979 577,191 516,683 517,425 514,405 428,929 4!>0,357 450,177 498,450 402,939 336,807 337,258 354,358 16 to 30 days 65,656 5,374 5,214 5r401 4,408 4,988 7,324 5,495 4,550 3,612 6,865 2,941 9,484 31 to 60 days 64,747 5,123 5,562 5,160 3,965 6,540 5,980 4,605 3,686 3,678 | 5,265 4,231 10,952 61 to 90days 288,800 59,968 30,805 14,851 46,413 19,540 16,623 29,439 14,192 8,241 | 25,974 10,231 12,523 91 to 180 days 76 2 6 3 11 4 2 I 3 10 17 Total. 5, 820, 258 647,658 .58,209 542,843 569,199 480,000 496, 289 489,727 520,882 j 418,472 i 374,9i4 354,671 387,334 ^ a Cleveland: Within 15 days. 2,520,438 216,786 246,663 241,368 223465 211,432 195,254 100,702 173,820 I 142,272 j 134,931 203,036 370,709 o 16 to 30 days 59,871 4,705 4,410 6,831 6,098 5,586 4,284 4,289 2,572 ; 4,280; 8,183 1,788 6,845 l 31 to 60 days 114,531 9,786 10,406 10,326 14,428 8,823 10,359 7,552 5,783 I 6,528 | 9,028 9,293 12,219 61 to 90 days 193, GO 3 12,502 15,488 13,978 19,150 13,247 14,391 24,300 15,289 | 11,107 j 18,228 18,107 23,818 91 to 180 days... 1,225 100 102 131 10 134 104 ' 190 107 129 153 Total. 2,895,670 243,779 | 276,972 272,003 j 263,243 \ 239,219 224, 298 196,977 j 197,508 I 104,377 j 170,537 232,353 I 413/744 Richmond: Within 15 days. 2, 942,280 286,555 | 243,601 297,441 269,440 j 266,783 243,526 213,898 232,692 236,887 203,047 203,583 244,827 16 to 30 days 78,365 4,380 | 3,738 8,923 4,719 | 4,736 9,266 5,701 4,247 7,602 6,932 8,792 9,329 31 to 60 days 162, 247 7,353 j 8,660 14,564 11,546 j 11,352 16,579 14,033 11,933 18,064 16,068 13,866 18,229 61 to 90 days 157,316 6,578 I 8,275 10,546 9,034 ; 8;178 16,224 10,275 16,167 18,309 14,656 14,650 IS, 424 H 91 to 180 days... 6,114 21 | 101 338 871 1,708 1,510 347 150 10S 368 424 O Total -- 3,346,322 304,8 264,322 331,575 295,077 291,920 | 287,303 251,417 I 205,386 281,012 • 240,871 241,259 291,233 Atlanta: > Within 15 days. 1,732,501 129,417 114,000 119,968 119,040 j 131,441 128,245 131,577 155,499 153,498 173,428 195,505 180,883 o 16 to 30 days 68,394 3,874 3,645 4,705 5,170 I 5,457 5,527 4,704 8,042 6,232 ! 8,115 5,898 7,025 31 to 60 days 144, 953 7,467 7,707 il, 870 11,924 | 12,188 8,182 11,994 15,979 15,789 '; 14,546 11,904 15,403 61 to 90 days 266,302 9,625 11,335 19,069 19,819 22,651 17,232 27,147 | 26,551 31,695 '; 30,026 23,956 27,196 91 to 180 days... 19,796 38 22 404 683 ! 2,436 3,565 4,765 ! 2,212 520 769 2,033 2,340 Total. 2,231,946 150,421 | 136,709 156,016 156,636 I 174,173 162,751 180,187 I 208,283 i 207,734 226,884 239,296 232,856 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 39.— Volume of bills discounted by each Federal Reserve Bank during 1920, by months and maturities—Continued, [In thousands of dollars.] 00 Federal R m es a e t r u v r e i ty B . ank and Total. January. February. March. April. May. June. July. August. September. October. November. December. Chicago: Within 15 days 3,816,927 305,691 314,497 377,302 343,997 339,596 345,965 307,511 299,938 325,911 270,460 282,809 303,190 10 to 30 days 277,235 19,105 14,484 21,281 26,513 24,737 15,659 16,869 18,584 32,139 17,985 41,076 28,803 31 to 60 days 745,940 43,125 57,045 87,145 01,027 43,646 52,051 60,381 80,089 78,766 62,129 64,568 55,368 61 to 90 days 1,386,270 39,189 84,157 142,202 91,880 92,169 139,403 105,635 107,884 175,986 127,907 119,974 159,758 91 to 180 days 79,120 1,407 1,907 8,330 <i, 572 5,829 7,788 5,906 4,451 8,876 8,953 9,436 9,599 Total 0,305,492 408,577 472,090 (536,380 529,995 505,977 j 500,926 496,302 510,940 621,078 487,434 517,803 556,718 St. Louis: Within 15 days 1,721,480 149,812 132,477 219,733 181,238 135,297 126,141 120,975 137,425 135,340 141,488 124,790 110,758 10 to 30 davs 101,217 13,201 0,020 10,024 11,722 6,824 5,452 4,733 6,050 8,971 7,753 7,628 12,173 31 to 60 days 290,160 17,884 15,213 15,178 46,102 34,504 19,426 18,969 24,518 24,995 22,505 24,242 26,624 01 to 90 days 314,503 14,328 12,421 24,269 22,156 27,847 25,701 39,719 36,942 37,142 35,511 20,856 17,611 91 to 180 davs 10,6S1 105 40 192 1,387 1,007 1,456 2,165 786 845 906 057 1,135 • Total 2, 438,041 195,390 160,777 269,396 262,605 205,479 178,176 192,561 205,721 207,293 208,163 178,179 168,301 Minneapolis: Within 15 days 515.854 44,375 42,574 37,200 48,132 47,663 49,097 36,933 37,321 33,501 36,252 42,157 60,583 16 to 30 days 61,057 2,504 1,443 2,824 4,917 7,966 7,970 6,412 9,242 2,399 4,761 5,903 5,256 31 to 60 days 118,106 0,501 5,516 10,242 11,413 8,242 6,665 5,309 9,497 13,727 13,005 16,484 11,505 61 to 90 days... 222,706 0,004 12,214 10,980 21,358 17,859 23,180 18,741 23,265 22,021 26,654 16,916 10,314 91 to 180 day s 35,069 1,139 1,089 1,149 3,532 5,873 7, 846 4,896 1,858 1,457 2,359 1,229 2,642 Total 953,392 01,183 02,830 08,401 : 89,352 87,603 94,758 72,291 1 81,183 73,705 83,031 82,689 90,300 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Kansas City: Within 15 days 1,121,468 92,446 71,778 90,256 92,566 89,244 100,336 106,930 103,337 99,310 96,475 91,107 87,683 16 to 30 days 58,612 2,451 2,410 4,663 5,747 4,302 3,336 4,284 4,673 7,464 7,517 5,742 6,023 31 to 60 days 146,235 6,053 9,235 11,942 13,906 9,607 9,099 9,198 13,310 19,405 18,088 13,587 12,805 61 to 90 days 238,605 12,694 17,360 18,737 18,993 16,497 17,406 19,778 21,134 26,826 30,862 18,628 19,690 0o0 91 to 180 days 103,023 5,135 4,623 4,665 10,861 13,828 12,531 7,663 3,096 5,100 11,027 11,509 12,985 o Total 1,667,943 118,779 105,406 130,263 142,073 133,478 142,708 147,853 145,550 158,105 163,969 140,573 139,186 Dallas: Within 15 days 1,002,957 77,569 69,276 79,785 87,743 91,901 90,734 75,810 82,094 90,826 84,993 93,045 79,181 4 16 to 30 days 27,312 1,114 579 1,197 1,966 1,375 1,597 2,772 2,485 4,004 3,541 3,428 3,254 O 31 to 60 days 82,187 1,159 1,505 4,358 5,709 4,384 7,892 8,708 10,015 10,693 7,960 10,315 9,489 o 61 to 90 days 122,785 2,860 2,567 6,381 8,735 8,569 9,642 16,447 13,402 15,951 14,452 12,238 11,541 91 to 180 days 44,937 827 793 1,771 3,042 4,951 7,425 5,797 2,787 2,566 2,607 5,026 7,345 Total 1 280 178 83,529 74,720 93,492 107,195 111,180 117,290 109,534 110,783 124,040 113,553 124,052 110,810 San Francisco: Within 15 days 2,381,353 178,682 137,430 210,442 201,058 275,223 171, 920 205,529 185,053 178,785 175,235 168,974 233,022 H 16 to 30 days 75,146 5,750 3,856 6,507 6, 904 6,864 5,975 3,424 4,977 6,638 5,564 7,699 10,988 O 31to60davs 163,123 8,617 7,897 12,273 13,089 15,875 16,850 6,869 12,922 18,309 13,734 17,102 19,586 61 to 90 days 294,903 14,094 12,860 19,975 17,695 20,282 26,277 24,165 21,444 39,402 30,374 29,248 39,087 91 to 180 days 51,122 2,568 1,771 2,726 3,722 6,537 9,253 7,134 3,401 1,840 2,546 4,441 5,183 > H Total 2,965,647 209,711 163,814 251,923 302,468 324,781 230,275 247,121 227,797 244,974 227,453 227,464 307,866 O 3 CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 40.— Volume of bills discounted during 1920, distributed by classes, also average rates and maturities. 00 [In thousands of dollars.] O Member banks' collateral Customers' notes. Federal Reserve Bank. G se o c v p u e a r r p e n d e m r b e y nt Secured by c C n u . o l e m t . u m s ra ., e l , r a c g a i r a n i l d - , a T c r c a e d p e t- B a a c n c k ep er t- s' Total. m A a v t e u r r a i g ty e . A (3 v 6 r e a 5 r t - e a d g ay e war Government Otherwise live-stock ances. basis). obligations. war secured. paper. obligations. Days. Per cent Boston 196,056 3,877,974 416 775,317 4,664 22,129 4,876, 13.14 6.03 j New York 941,191 31,159,778 293 18,321,258 46,255 70,654 50,539, 7.34 5.97 O Philadelphia.. 322,351 4,093,104 254 1,395,631 4,791 4,127 5,820, 13.24 5.44 W H Cleveland 94,628 2,274,415 5,260 484,975 26, ?77 10,015 2,895, 16.45 5.66 Richmond 48, 794 2,889,355 18,105 377,392 12,676 3,346, 13.71 5.78 Atlanta 65,293 1,506,098 7,676 632,658 13,883 6,338 2,231, 25.26 5.97 Chicago 141,848 3,674,533 22,475 2,408,251 26,290 32,095 6,305, 34.74 6.32 St. Louis 94,417 1,346,814 2,952 973,263 13,471 7,124 2,438, 24.77 5.98 Minneapolis.. 23,193 455,581 40,006 431,474 3,138 953, 38.85 6.40 Kansas City.. 48,617 1,065,410 31,734 511,672 10,142 368 1,667, 34.54 6.65 Dallas 15,793 984,150 11,785 262,076 5,670 704 1,280, 27.42 5.80 San Francisco 36,961 2,083,664 13,615 772,999 24,800 33,608 2,965, 21.13 5.82 Total... 2,029,142 55,410,876 154,571 27,346,966 192,157 187,162 85,320,874 13.29 6.02 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 41.— Volume of bills discounted, by States; number of member banks in each State, and number accommodated through discount operations; 1919 and 1920. [Amounts in thousands of dollars.] i m n e e N m a u c b m h e S b r t e b a r a t o e n f o k n s c N o d m u u m m ri b n o e g d r — a a t c ed - Total d a is m co o u u n n t t e d o — f paper i m n e e N m a u c b h m e S r b t e b a r t a e o n f o k n s c N o d m u u m m ri b n o e g d r — a a te c d - Total d a is m co o u u n n t t e d o — f paper State. Dec. 31— State. Dec. 31— 2 1919 1920 1919 1920 1919 1920 1919 1920 1919 1920 1919 1920 a o d Maine 65 66 42 38 77,747 50,294 Ohio 439 459 226 260 1,324,416 1,062,757 New Hampshire. 55 55 46 45 99,425 49,932 Kentucky: Vermont 48 49 41 40 53,315 30,252 Massachusetts 187 189 165 160 4,108,984 4,554,281 District No. 4 74 75 29 35 59,146 49, 709 Rhode Island 20 20 14 16 133,014 41,954 District No 8 67 69 36 45 461,520 426,245 o Connecticut: Total 141 144 65 80 520,666 475,954 District No. 1 57 57 40 43 202,913 149,843 West Virginia: District No. 2 15 14 12 12 110,454 83,856 District No. 4 i6 16 10 9 29,353 30,086 > Total.. 72 71 52 55 313,367 233,699 District No. 5 110 116 46 36 46,838 45,886 W New York 574 595 419 404 41,223,867 49, 80.5,621 Total 126 132 56 45 76,191 75,972 H O New Jersey: District of Columbia 15 16 10 10 105,261 124,3£2 Maryland 102 98 68 70 l,0C0,475 830,265 120 1,115,170 649,952 Virginia i70 185 124 140 2,195,063 1,737,53S North Carolina 92 $7 74 85 356,206 303,320 Total. 245 260 178 182 1,328,051 888,470 South Carolina C6 98 92 96 427,1C0 304,961 O Tennessee: Delaware 23 22 14 20 41,370 43,016 District No. 6 85 51 578,661 770,004 Pennsylvania: District No. 8 23 25 16 21 256,579 216,780 District No. 3 574 590 417 402 10,482,185 5,538,724 District No. 4 314 321 144 146 1,712,941 1,753,118 Total 108 111 70 72 835,240 9F6,790 Total 888 911 561 548 12,195,126 7,291,842 Cxeorgia 120 139 119 134 £68, 548 540,167 00 Florida... 61 65 46 46 106, 733 100,324 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 41.— Volume of bills discounted, by States; number of member banks in each State, and number accommodated through discount operations; 1919 and 1920—Continued. 00 to [Amounts in thousands of dollars.] State. i m n e N e D m a u c e b m h c e . b S r 3 e t 1 b a r — a t o e n f o k n s c N o d m u u m m ri b n o e g d r — a a te c d - Total d a is m co o u u n n t t e d o — f paper State. i m n e e N D m a u c e b h m c e . S b r 3 e t b 1 a r — a te o n f o k n s c N o d m u u m m ri b n o e g d r — a a te c d - Total d a is m co o u u n n t t e d o — f paper 1919 1920 1919 1920 1919 1920 1919 1920 1919 1920 1919 1920 Alabama 109 121 86 95 167,699 144,048 Illinois: Mississippi: District No. 7 380 390 208 277 2,254,682 2,982,798 District No. G 19 18 18 15 32,536 31,274 District No. 8 169 176 93 103 71,574 122,459 o District No. S 15 15 7 11 12,231 18,706 Total 549 566 301 380 2,326,256 3,105,257 Total 34 33 25 26 44,767 49,980 Indiana: 216 214 153 155 273,937 370,334 Louisiana: District No. 8 63 61 23 30 45,962 41,544 District No. G 32 33 24 31 551,600 646,129 District No. 11 15 20 11 14 37,425 26,232 Total 279 275 176 185 319,899 411,878 Total 47 53 35 45 589,025 672,361 Missouri: Michigan: District No. 8 100 111 65 82 1,100,475 1,407, 879 District No. 7 215 226 161 171 1, 216,159 1,743,005 District No. 10 61 58 35 45 632,952 687,211 District No. 9 41 46 12 17 6,909 6,906 Total 161 169 100 127 1,733,427 2,095,090 W o Total 256 272 173 188 1,223,068 1,749,911 Arkansas 101 114 65 94 152,290 204,422 > Wisconsin: Minnesota 335 368 174 242 570,420 734,318 District No. 7 129 132 88 97 263,943 385,750 North Dakota 179 187 80 144 18,412 55,649 District No. 9 53 56 20 20 5,557 21,189 South Dakota 144 152 88 130 45,963 82,986 Montana 168 200 101 151 14 260 52 344 Total 182 188 108 117 269,500 406,939 Wyoming 46 50 26 35 5,042 25,666 Iowa 434 459 341 424 547 591 823,005 Nebraska 207 210 173 192 436,359 356,931 Colorado 135 145 79 114 89,304 222,453 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Kansas 255 271 124 171 98,169 125,537 Arizona: 4,617 Oklahoma: District No. 12... 16,790 ^ District No. 10 320 340 235 257 286,724 239,982 g District No. 11 36 40 35 37 19,836 27, 757 Total Total 356 380 270 294 306,560 267,739 Utah.. *"a New Mexico: California W District No. 10 14 13 7 12 7,046 10,163 a o M DistrictNo.il 40 43 35 38 17,511 20,560 d CO T 0 t a 1 54 56 42 50 24,557 30,723 W Al a a s s h k i a n . gt . o . n Texas 655 737 518 604 1,144,804 1,201,012 Total, all States 85,320,874 g > H i 00 CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 42.— Volume of bills discounted for national banks and for State bank and trust company members oj the Federal Reserve System during 1920 and 1919. oo [In thousands of dollars.] State bank and State bank and Total. National banks. trust company Total. National banks. trust company Federal Reserve members. Federal Reserve members. Bank. Bank. 1920 1919 1920 1919 1920 1919 1920 1919 1920 1919 1920 1919 Boston 4,876,556 4,675,398 3,903,570 4 003,489 972,986 671,909 St. Louis 2,438,041 2,100,631 1,689,278 1,065,560 748,763 1,035,071 New York 50,539,429 42,449,491 42,514,279 34,131,313 8,025,150 8,318,178 Minneapolis 953,392 661,520 887,148 614,780 66,244 46,740 Philadelphia 5,820,258 10,736,435 4,985,343 9,021,397 834,915 1,715,038 Kansas City 1,667,943 1,555,597 1,474,277 1,471,579 193,666 84,018 Cleveland 2,895,670 3,125,857 1,759,446 2,169,280 1,136,224 956,577 Dallas 1,280,178 1,224,946 1,150,000 1,123,343 130,178 101,603 Richmond 3,346,322 4,130,943 3,119,260 3,818,758 227,062 312,185 i San Francisco 2,965,647 1,951,062 1,949,150 1,692,939 1,016,497 258,123 Atlanta 2,231,946 2,005,778 1,520,311 1,478,777 711,635 527,001 Chicago 6,305,492 4,556,312 4,335,290 2,927,458 1,970,202 1,628,854 | Total 85,320,874 79,173,970 69,287,352 63,518,673 16,034,522 15,655,297 No. 43.— Volume of bills discounted secured by Government tvar obligations, by months during 1920. [In thousands of dollars.] Year. Feder B a a l n R k e . serve M ba em nk b s e ' r Custom- 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 . - De b c e e r m . - Total. collateral ers'paper. notes. Boston . 4,074,030 3,877,974 198,056 343,955 374,375 381,400 304,880 372,969 349,388 250,501 343,463 304,670 270,305 350,984 427,140 New York 32,100,969 31,159,778 941,191 3,066,097 3,369,072 2,895,562 2,452,346 2,227,110 2,419,799 2,676,440 2,940,516 2,271,608 2,535,542 2,453,927 2,792,950 Philadelphia 4,415,455 4,093,104 322,351 594,744 461,021 451,064 464,752 393,587 375,112 323,533 315,287 273,440 252,626 242,002 268,287 Cleveland 2,369,043 2,274,415 94,628 210,493 242,728 229,306 213,342 199,399 186,901 152,020 163,543 124,496 119,815 178,832 348,168 Richmond 2,938,149 2,889,355 48,794 289,386 247,362 297,124 270,845 267,175 242,023 212,479 232,952 231,648 202,974 202,170 242,011 Atlanta 1,571,391 1,508,098 65,293 128,038 115,157 118,203 117,470 126,653 118,113 122,330 148,851 140,911 145,344 156,019 134,302 Chicago 3,816,381 3,674,533 141,848 305,562 321,057 380,020 342,224 335,253 346, 111 305,394 309,582 316,386 271,360 284,828 298,604 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

St. Louis 1,441,231 1,346,814 94,417 147,548 102,499 152082 144,183 ] 116,071 110,505 106,085 112,987 117,103 123,247 109,742 99,179 Minneapolis 478,774 455,581 23,1G3 45,075 42,444 39,075 47,242 j 45,824 46,704 34,4C3 33,814 32,258 35,218 34,476 42,181 Kansas City 1,114,027 1,005,410 48,C17 84,353 09,706 84991 90,553 | 91,402 1C3,3C0 108,277 107,032 100,775 97,505 89,541 86,532 Dallas 999,943 984,150 15,793 70,922 69, Of3 80,006 88,584 I 91,475 91,503 i 75,913 82,734 90,241 83,891 92,211 77,370 San Francisco 2,120,625 2,083, GC4 30,961 104,171 129,766 190,051 234,651 241,548 155,317 166,071 143,222 1C0,526 167,442 154,991 212,869 Total: 1920... 57,440,018 55,410,876 2,029,1425,456,3445,544,280 5,298,8844,771,072 4,508,460 4,544,836 4,533,506 4,933,983 4,164,062 4,305,269 4,349,723 5,029,593 1919... 74,187,280 72,289,835 1,897,445 5,713,903 4,755,629 5,271,5405, 9€3,811 7,169,367 6,036,278 6,824,988 6,170,782 6,238,301 7,348,942 :>,761,542 6,202,197 1918... 33,390,080 32,142,406 1,247,674 378,507 400,037 3151161,806,669 2,523,506 2,621,132 2,469,385 3,127,333 4,077,897 5,308,281 4,601,248 5,760,969 O O d No. 44.— Volume of trade acceptances discounted, by months during 1920. [In thousands of dollars.] Janu- Febru- Septem- Novem- Decem- Year Year Year Year Federal Reserve Bank. ary, ary. March. April. May. June. July. | August. ber. October. ber. ber. 1920. 1919. 1918. 1917. Boston 583 257 1,704 383 415 146 193 170 156 174 195 4,664 10,821 10,287 6,115 New York 6,335 j 4,456 7,364 3,155 4,201 2,143 2,113 4,215 3,989 3,673 2,793 1,758 46,255 57,133 70,677 6,864 Philadelphia.... 280 ! 837 488 233 518 355 541 316 231 351 88 547 4,791 3,753 5,650 726 Cleveland 1,757 | 1,033 4,286 3,299 2,217 1,217 2,422 2,200 2,138 2,220 1,671 1,917 20,377 14,091 24,894 4,401 S Richmond 557 505 1,818 908 682 1,798 870 675 1,207 1,248 1,071 1,337 12,676 9,083 13,389 3,160 Atlanta 755 311 1,802 1,460 1,212 1,925 642 745 758 1,808 1,056 1,409 13,883 8,234 11,697 4,562 Chicago 1,266 896 2,455 2,044 1,628 1,245 1,885 1,994 2,279 2,968 3,389 3,641 26,290 6,581 9,033 430 St. Louis 1,652 1,030 1,246 1,288 1,122 744 937 656 823 1,708 913 1,352 13,471 7,946 15,681 3,115 Minneapolis 165 73 174 179 401 375 336 289 166 539 221 220 3,138 565 799 364 H Kansas City 253 318 578 449 828 1,002 1,023 623 l,C01 1,122 1,050 1,295 10,142 7,486 10,401 2,646 O Dallas 157 7 149 573 140 729 346 436 691 1,111 778 553 5,670 1,887 2,057 178 3 San Francisco 2,754 1,278 1,319 820 3,149 1,990 2,196 1,669 3,107 2,485 1,939 2,094 24,800 10,840 12,807 5,210 Total: 1920 16,520 11,001 | 23,383 I 15,296 10,541 13,938 13,457 14,011 17,160 19,389 15,143 16,318 192,157 1919. 10,904 8,880 I 8,561 8,071 7,062 7,946 8,505 6,428 10,608 16,064 21,924 23,467 138,420 1918. 13,998 19,217 16,231 11,121 13,106 14,811 13,822 12,762 20,917 23,519 16,191 11,617 187,372 1917. 574 856 763 678 1,768 2,521 1,077 1,668 1,120 4,355 6,960 15,425 37,771 00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 45,— Volume of bankers' acceptances discounted, by months during 1920, OO [In thousands of dollars.] Federal Reserve Bank. January. ru F a e r b y - . March. April. May. June. July. August. te S m e b p e - r. October. No b v e e r. m- De b c e e r m . - T 1 o 9 t 2 a 0 l . , T 1 o 91 t 9 a . l, Boston 1,554 9,874 7,312 1,032 1,757 490 10 23 77 22,129 4,985 New York 10,701 3,586 10,994 13,220 4,967 2,065 3,535 1,831 2,244 5,684 6,019 5,808 70,654 61,771 Philadelphia .. 1,830 812 32 18 292 118 225 475 200 125 4,127 19 Cleveland 32 102 493 230 178 85 452 1,568 1,003 4,1F6 1,686 10,015 Richmond Atlanta . 271 279 1,613 2,247 545 253 115 332 125 160 262 136 6,338 IS Chicago 2,413 11,815 7,509 4,100 1,703 461 655 615 585 222 932 1,085 32,095 St Louis 321 80 808 553 482 727 827 734 855 930 346 461 7,124 4,146 Minneapolis Kansas City 145 30 30 31 14 46 49 11 12 368 357 Dallas 135 100 135 153 181 704 San Francisco 1,966 1,115 5,249 6,250 5,387 4,782 1,703 1,502 2,251 1,831 1,319 253 33,608 365 Total* 1920 17 226 28 611 34,534 28 172 15,254 9,431 7,069 5,490 8 103 10 354 13 275 9 643 187 162 1919 .. .. 1,577 737 780 420 1,112 496 361 182 388 1,271 2,053 62,246 71,643 No. 46.— Volume of bills discounted during 1920, by normal rates oj discount charged. [In thousands of dollars.] w o Federal Reserve Bank. 4£ per cent.ih per cent. 5 per cent. I 5£ per cent.5J per cent, i 5f per cent. 6 per cent. 6i per cent. 7 percent. Total. Boston . . 712 6,246 439,151 555,159 1,722,816 ! 1,619,999 532,473 4,876,556 New York 4, 845,083 5,470,246 14, 756,459 10,406,461 15,061,180 50,539,429 Philadelphia 30 571 666,285 740,370 13,282 2,981,356 27,514 1,390,822 28 5,820,258 Cleveland . 1,360 29,345 223,518 283,335 1,562 807,434 1,071,849 476,508 759 2,895,670 Richmond.. 11,544 286,202 167,176 823 1,089,030 13,899 1,777,648 3,346,322 Atlanta h 13,094 153,055 223,334 6,182 1,133,790 6,795 500,010 195,686 2,231,946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Chicago 54,586 I 490,347 483,277 9,679 1,147,867 [ 114,224 2,397,837 1,607,675 6,305,492 St. Louis 49,86.2 | 172,575 238,007 2,463 1,013,017'. 962,077 40 | 2,438,041 Minneapolis . 158 107,579 37,682 183 160,018 ! 10 322,270 2,141 323,351 j 953,392 Kansas City. 4,092 39,691 156,554 1,101 j 644,281 | 30,873 791,351 1,667,943 Dallas 52,473 35,896 248,603 2,497 | 651,292 j 8,471 280,933 13 ! 1,280,178 San Francisco. 30,883 278,442 247,640 189,555 i 443,021 | 197,384 1,578,706 | 2,965,647 Total 2,118 252, 854 7,737,824 j 8,^51,383 C27,327 26,55O,3F1 I 1,471,019 22,504,622 2,141 17,721,205 | 85,320,874 aXfi o No. 47,—Number oj banks in each district accommodated through discount operations, by months during 1920. d Federal Reserve district. J a a r n y u . - 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- De b c e e r m . - T 1 o 9 t 2 a 0 l . , T 1 o 9 t 1 a 9 l . , T 1 o 9 t 1 a 8 l . , T 1 o 9 t 1 a 7 l . , O Boston 307 227 239 254 252 246 231 201 219 217 219 256 342 i 348 269 218 o ISfew York 375 343 373 390 389 365 347 323 323 306 316 345 536 546 522 322 Philadelphia 393 374 361 364 374 378 357 365 348 310 325 341 484 494 457 201 Cleveland 238 226 239 291 307 296 298 282 258 248 • 239 272 450 409 320 160 Richmond 264 243 282 317 353 377 390 371 356 340 343 373 437 414 373 246 > Atlanta 159 153 177 207 254 267 288 294 310 323 335 310 372 347 327 228 Chicago 530 588 625 709 735 739 751 742 772 848 1,026 959 1,124 951 850 541 St Louis 204 209 241 271 301 297 287 285 303 310 299 318 386 305 278 149 Minneapolis 228 221 275 345 441 495 502 488 410 508 587 664 704 475 580 284 Kansas City 297 276 314 394 471 494 508 488 547 614 658 671 826 679 554 364 Dallas . 210 217 252 317 404 610 519 527 521 542 524 600 702 607 548 258 > San Francisco. . . . 256 261 292 316 361 384 380 414 391 386 404 442 578 418 415 156 H Total—1920 3,461 3,338 3,670 4,175 4,642 4,948 4,858 4,780 4,758 4,952 5,275 5..551 6,941 | O 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 3,4G4 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 00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minneapolis 27.82 31.58 36.95 39.94 40.95 43.62 42.24 40.42 42.99 45.80 36.47 33.33 38.85 22.27 32.78 Kansas City 28.02 32.33 31.09 36.31 39.32 35.02 31.01 28.76 33. 72 39.87 37.67 39.39 34.54 23.41 30.76 Dallas 18.29 18.74 22.88 25.54 26.98 29.11 33.55 28.59 28.43 28.59 28.94 33.22 27.42 20.25 27.00 San Francisco 17. c 7 20.28 17.76 15.72 17.16 26.22 21.57 21.41 26.00 23.38 25.26 23.47 21.13 16.42 25.31 All banks—1920. 13.21 12.26 13.77 15.08 14.74 14.48 13.63 12.38 14.27 13.26 12.17 11.55 13.29 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 1 I O No. 50.— Volume of bankers' and trade acceptances bought in open market, by months during 1920. O [In thousands of dollars.] Year. Federal Reserve Bank. January. Feb- 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 . - 1920 1919 1918 1917 Boston 18,686 18,279 25,547 29,156 29,302 23,961 22,569 24,852 31,990 29,069 27,200 23,834 304,445 360,784 194,158 91,528 New York 153,067 176,215 164,496 93,744 159,109 160,569 115, 740 132,506 111,730 145,283 142,999 141,872 1,697,330 1,211,399 945,498 464,966 Philadelphia 3,723 2,250 1,388 992 504 1,034 616 8,058 1,503 8,765 2,742 9,657 41,232 14,049 77,686 85,914 Cleveland 28,926 30,993 28,417 23,207 27,011 29,245 21,539 24,937 24,535 24,046 13,625 18,121 294,602 261, 750 122,800 91,109 n Richmond 4,357 4,085 6,778 5,485 4,897 3,502 3,083 4,706 3,888 3,745 3,388 3,797 51,711 52,977 70,766 58,116 Atlanta 6,636 6,737 3,901 4,209 3,096 2,979 1,430 1,198 2,040 2,960 1,711 2,680 39,577 51,661 45,477 26,393 Chicago 24,486 35,733 33,096 23,266 32,154 35,420 27,608 34,657 32,332 27,336 14,136 24,797 345,021 292,012 122, 787 66,714 St. Louis 4,820 5,749 6,118 4,159 2,596 3,216 2,041 985 1,345 2 102 573 2,316 36,020 87,503 26,096 29,732 Minneapolis 450 3,395 2,488 2,451 2,307 1,425 2,774 525 553 483 538 670 18,059 108,714 13,903 33,072 Kansas City 100 450 330 131 948 1,757 2,064 3,515 2,857 2,079 970 1,973 17,174 26,086 14,691 26,826 o Dallas 417 1,630 436 1,757 267 60 682 805 532 1395 295 72 8,348 12,415 25,024 35,077 San Francisco 56,784 14, 791 30,364 59,037 12,046 22,585 19,318 22,964 44,684 34,570 23,663 24,039 364,845 345,827 150,653 68,266 Total—1920. 302,452 300,307 303,359 247,594 274,237 285, 753 219,464 259,708 257,989 281 833 231,840 253,828 3,218,364 1919. 201, 492 147, 410 143,662 140,639 147,650 291,915 276,485 194,211 205,048 335 262 340,695 400,708 2,825,177 1918.. 130,620 148,275 138,996 108,516 115,914 89,580 123,574 162,796 183,132 256 705 195,698 155,733 1,809,539 1917. 20,617 70,641 28,153 41,313 82,544 135,230 66,864 72,123 109,046 86 894 186,219 178,069 il?077,713 00 1 Includes $168,411,520 of acceptances purchased from the Federal Reserve Banks of Boston and New York by other Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 51.— Volume of bankers' and trade acceptances bought in open market during 1920) by banks and maturities. CO [In thousands of dollars.] o Maturity. Federal Keserve Bank. Total. Within 15 16 to 30 31 to 60 61 to 90 days. days. days. days. J> Boston 304,445 137,140 46,682 82,264 38,359 c New York 1,697,330 801,737 251,093 298,073 346,427 p Philadelphia.. 41,232 2,172 3,852 12,734 22,474 Cleveland 294,602 21,575 37,070 118,160 117,797 fr Richmond... 51,711 2,859 12,214 16,831 19,807 £ Atlanta 39,577 1,839 8,403 12,885 16,450 £ Chicago 345,021 64,195 29,802 123,751 127,273 H St. Louis 36,020 13,948 1,198 5,362 15,512 |p Minneapolis.. 18,059 97 1,173 5,220 11,569 C Kansas City.. 17,174 504 1,444 11,494 3,732 £ Dallas 8,348 269 1,683 4,402 1,994 p San Francisco 364,845 13,816 54,810 157,714 138,505 W Total... 3,218,364 1,060,151 449,424 848,890 859,899 a Wo Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 52,— Volume of bankers1 and trade acceptances bought in open market during 1920, by months and maturities. [In thousands of dollars.1 Maturity. Month. Total. Within 15 16 to 30 31 to 60 61 to 90 days. days. days. 1 January 302,452 98,755 37,904 52,913 112,880 Q O February 300,308 79,909 27,993 75,441 116,965 d March 303,359 93,209 34,902 59,018 116,230 April 247,594 53,757 28,330 75,653 89,854 May 274,237 80,924 40,572 85,852 66,889 u June 285,753 81,130 38,646 87, 620 78,357 o July 219,464 52,692 32,381 68,603 65,788 August 259,708 104,343 46,168 68,456 40,741 3 September 257,989 84,968 37,313 81,672 54,036 October 281,832 132,689 41,261 60,596 47,286 November 231,840 103,271 41,422 57,176 29,971 December 253,828 94,504 42,532 75,890 40,902 Total—1920 3,218,364 1,060,151 449,424 848,890 859,899 H o 1919. 2,825,177 578,751 455,779 807,326 1983,311 3 i Includes $434,000 maturing after 90 days but within three months. > o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 53.— Volume of acceptances bought in open market during each month in 1920, CD [In thousands of dollars.] to Bankers' acceptances. Trade acceptances. Month. All classes. In the In the Dollar In the In the Total. foreign domestic exchange Total. foreign domestic trade. trade. bills. trade. trade. % I January 302,452 29G,965 230,180 60,785 2,781 2,706 2,404 302 February 300,308 294,009 228,091 65,918 2,950 3,349 3,320 29 March 303,359 294,301 230,951 57,350 4,157 4,901 4,089 812 April 247,594 238,951 182,702 56,189 1,753 6,890 6,502 388 I May 274, 237 2158,003 195,295 72,768 2,435 3,739 2,724 1,015 June 285,753 250,184 193,373 62,811 5,150 24,419 22,872 1,547 July 219,404 207,272 158,499 48,773 2,024 10,168 9,954 214 August 259,708 242,012 190,985 51,027 5,426 12,270 12,270 September 257,989 249,2G8 1 6,325 52,943 6,590 2,131 1,927 204 October 281, 832 239,284 203,021 66,263 10,878 1,670 935 735 November 231, 840 221, 071 1G8,742 52,929 9,161 1,008 758 250 December 233,828 241,212 177,657 63, f.55 11,240 1,370 1,121 255 Total—1920. 3,218,3 4 3,079,192 2,307,881 711,311 64,545 74,627 68,876 5,751 1919. 2,825,177 2,777,313 2,020,888 756,425 11,306 36,558 27,289 9,269 No. 54.— Volume of bills purchased during 1920, by rates oj discount charged. o [In thousands of dollars.] Feder B al a n R k e . serve Total. cent. 4 c i e p n e t. r 4 c | e p n e t. r cent. 4 c f e n p t e . r 4 c -H en p t e . r 4 c | e p n e t. r 4 c tf e n p t e . r c 5 e p n e t. r 5 c 3 1 e s- n p t. er 5 c | e p n e t r . of c V en p t. er 5 c i e p n e t. r 5 c & e n p t e . r 5 c | e p n e t r . 5 c -f e t n p t. er 5 c § e n p t e . r cent. 5 c | e p n e t. r Boston 304 445 600 1 839 2 808 1,754 14,191 4,728 4,690 1,999 5,931 45 16,858 New York 1,697,330 49 62,930 75 10,737 231 21,279 1,082 4,960 100 287,980 1,189 34,237 1,797 91,716 2,591 46,240 Philadelphia 41,232 341 1,572, 1,317 224 520 735 329 569 201 653 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Cleveland 294,602 243 3,286 155 3/192 125 11,345 253 2,472 187 322 175 12,547 260 17,982 376 18,314 Richmond 51,711 3 181 5 105 Atlanta 39,577 272 3,555 1,313 7 832 400 Chicago 345 021 3,095 4 5,627 40 8,775 1 330 7,572 126 12,485 135 17,092 22,034 St. Louis.. 36,020 50 30 100 475 5,160 404 846 200 3,939 16 425 500 1,673 324 Minneapolis ... 18,059 250 200 10,117 225 375 Kansas City 17,174 100 881 Dallas 8 348 355 62 1 435 San Francisco 364,845 23 150 9,127 281 9,351 1,151 22,559 1,040 6,048 120 5,6C0 787 7,238 308 17,508 155 31,688 Total 3,218,364 50 344 491 243 87,638 515 32,363 2,022 84,035 2,779 17,410 607 333,578 7,021 72,582 5,328 160,067 3,3G8 136,111 Federal Reserve Bank. 5 c « e n p t e . r 5 c f e n p t e . r cent. 5 c | e p n e t r . 5 c H e n p t e . r 3 se p n e t. r 6 c J e p n e t. r 6 c & e n p t e . r cent. cent. 6 c f e n p t e . r Q c > en h t p . er 6 c $ e n p t e . r 6 c f e n p t e . r 6 c 1 e n p t e . r 7 c e p n e t r . cent. Boston 188 33,259 216 51,761 673 42.377 38,071 23 362 51,141 r,636 987 325 New York 380 640,845 803 226,002 152,383 39,678 16,503 3,208 1,085 100 76 48,902 166 Philadelphia 9,341 200 6,576 670 16,418 1,316 150 100 Cleveland 42,637 30 90,646 66,338 8,995 3 149 4,100 1,691 20 108 154 Richmond 2 178 41 247 Atlanta 21,814 4 391 Chicago . . . . 53,549 225 120,374 34,72 6 10,344 210 10,714 130 20,993 <,;479 702 60 200 St Louis 310 3,201 100 2,271 4,932 655 1 862 1,936 3,284 1,177 2,150 Minneapolis 6,778 40 50 24 Kansas Citv 31.002 549 2,642 Dallas 110 5,706 680 San Francisco 61,987 35 97,478 80 f3,3!7 14,653 3 586 480 35 Total 878 847,107 1,009 595,108 1423 4*H, 038 113,752 210 60,006 130 88,008 23,783 2,986 2,659 214 56,135 166 CD OP Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 55.—Average rate charged on bankers' and trade acceptances purchased, by months during 1920. [Per cent.] 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 . - Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . Boston... 5.23 5.48 5 88 5.90 6.02 6.15 6.09 6.13 6.16 6.22 6.52 6.09 5.98 4.36 New York 5.11 5.53 5.75 5.77 5.92 6.06 6.04 6.01 5.97 5.96 6.41 5.99 5.81 4.37 Philadelphia 4.93 5.55 5.89 5.94 6.01 5.99 5.88 5.87 6.13 6.10 5.61 6.04 5.89 4.38 Cleveland 5.13 5.55 5.82 5.81 6.00 6.03 6.01 6.00 6.03 6.05 5.87 6.03 5.83 4.32 Richmond 5.00 5.59 6.07 6.03 6.06 6.08 6.08 6.08 6.08 6.08 5.98 6.08 5.93 4.60 Atlanta 5.00 5.29 6.08 6.08 6.08 6.08 6.08 6.08 6.08 6.08 6.65 7.10 5.85 4.57 Chicago. 5.11 5.60 5.87 5.87 6.04 6.12 6.13 6.09 6.08 6.11 6.71 6.17 5.93 4.38 St. Louis 5.06 5.33 5.62 5.69 6.03 6.20 6.17 6.18 6.29 0.16 6.60 6.25 5.68 4.31 O w Minneapolis 4.89 5.13 5.10 5.07 5.07 6.06 6.08 6.11 6.08 6.08 6.78 6.12 5.50 4.25 Kansas City 5.07 5.57 5.58 5.69 6.08 6.08 6.08 6.08 6.12 6.59 7.41 7.10 6.27 4.51 Dallas 5,09 5.61 6.08 6.08 6.25 6.08 6.08 6.25 6.08 6.08 5.98 6.08 5.97 4.68 San Francisco 5.08 5.53 5.80 5.82 6.00 6.00 6.03 6.01 6.05, 6.05 5.98 6.06 5.79 4.40 All banks—1920 5.10 5.53 5.80 5.82 5.96 6.07 6.06 6.04 6.04 6.05 6.45 6.08 5.85 1919 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 §3 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 56.—Average maturity oj bankers9 and trade acceptances purchased, by months during 1920, [Days.] 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 . - Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . Boston 36.18 25.93 36.12 37.87 39.15 32. 91 33. 78 34.54 35.63 24.03 31.15 27.64 33.10 43.10 New York 34.07 45.11 40.72 44.98 38.06 39. 49 42.20 26.15 31.31 24.03 27.67 30.65 35.42 42.64 Q Philadelphia 64.60 58.47 78.37 63.79 74.03 50.27 4&96 42.82 54.66 67.51 65.25 59.85 59.09 57.00 O Cleveland. 61.51 62.38 65.03 57.02 58.83 56.02 55.18 48.81 51.88 49.76 49.47 48.50 56.13 59.82 Richmond 63.31 62.84 60.09 62.11 60.04 47.72 71.68 51.25 46.07 50.77 41.82 47.46 55.98 56.41 Atlanta . 58.61 70.34 62.48 58.43 46.03 66.83 63.30 44.95 41.24 45.69 57.76 59.94 58. 55 62.38 Chicago 69.65 67.15 68.02 63.03 58.91 64. 58 61. 80 56.19 58.98 60.12 67.18 57.46 62.55 64. 43 St. Louis 58. 48 50.16 57.70 58.66 42.18 37.21 49.25 39.15 28.64 42.00 48.02 27.70 48.69 42.16 Minneapolis 54.77 71.12 59.21 65.30 49.34 57.32 70. SO 78.80 78.50 69.79 78.15 67.84 64.83 60.14 O Kansas City 75.96 76.00 73.40 78.56 44.59 66.43 00.44 49.29 52.44 60.17 51.85 53.88 56.18 61.24 Dallas 47.24 50.86 50.23 60.27 60.11 38.00 59.58 55. 36 34.20 37.82 44.81 64.71 50.64 47.38 San Francisco. . .... 63.71 61.07 63.87 59.15 57.03 56.33 59 69 49.09 52.54 50.96 43. 03 55. 04 56.97 61.93 All banks—1920... 47.05 50.50 49.33 51.59 44.22 45.72 47.82 36.78 41.71 35.51 35.11 33.43 43.83 1919 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 O I > O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

196 ANNUAL REPORT FEDERAL RESERVE BOARD. No, 57.—Rediscounts and sales oj bills between Federal Reserve Banks during 1920. CHRONOLOGICAL TABLE. [In thousands of dollars.] Rediscounted or sold by Federal Reserve Bank of a— Discounted or purchased by Date. Fed B e a ra n l k R of e — serve Boston. Y N o e r w k. de P l h p i h la ia - . C la le n v d e . - m R o ic n h d - . Chicago. K C a i n ty sa . s F c S i r s a a c n n o - . Dallas Jan 2.... 9,000 Chicago .do... . 3,000 Do Jan. 3 5,000 Cleveland Jan. 6... 110,006 Atlanta Jan. 8 5,000 Dallas ..do 4,500 5,000 St. Louis do. . 4,500 Dallas Jan. 9... 5,000 Atlanta . .do... 2,000 Cleveland ...do 11,100 New York. Jan. 12.. 120 1200 Dallas Jan.13 . 5,000 Chicago Jan. 14.. 60, 000 2,500 Atlanta .do.... 15,000 San Francisco ...do 10,000 Cleveland do 10,000 St. Louis.. .do.... 5,000 Do Jan. 15.. 3, 500 Chicago. . .do .. 5,000 Atlanta .. . Jan. 16.. 5,000 Dallas Jan.19. 8,000 Chicago .. . Jan.20.. 5,000 5,000 Do Jan.21. 4,000 Cleveland ...do 1 7,014 Chicago Jan. 22.. 5,000 San Francisco... . ...do 1 3, 408 Dallas Jan. 23 5,000 New York ..do 15 Cleveland Jan. 26 . 4,666 Do Jan. 27.. 1501 Dallas Jan. 29.. 5,000 Atlanta .. .do. . 5, 000 Chicago Jan. 30.. 30,000 5,000 5,000 Atlanta.. ...do 10,000 Cleveland ..do 5,000 Dallas .do... 5,000 Boston ...do 1 3, 579 New York.. Feb. 2... 1579 Chicago . do .. 9,000 Dallas ...do 5,000 Do Feb. 5... 5,000 Chicago .do... 0,500 Cleveland Feb. 6... 3, 600 Atlanta Feb. 9... 5,000 Dallas .do.... 5,000 Chicago . .do .. 6,000 Do ...do Cleveland . .do.... 1 5,036 Atlanta ...do 15,087 ! Kansas City do . 1 5,049 i Do Feb. 13.. 5,000 Dallas do .. - • i 7,000 Minneapolis ...do 1 5,000 Chicago Feb. 16.. 7,500 1 Dallas ..do 6,500 . - - 1 New Y ork. do. 115 Atlanta Feb. 19.. 2,000 Chicago do. i, 000 Kansas City. . ..do 5,000 1 Dallas do 5. ono Do . . Feb. 24 . . . /. 500 Minneapolis do 3,000 Dallas Feb. 26 9,000 Cleveland do i 5,000 Minneapolis Feb. 27.. : 1,000 Dallas Mar. 1... 2,500 Kanssis City do i 5,000 Minneapolis. . .do... 1 4,500 New York Mar. 3 1 50 Boston Mar. 5 . 20,000 Minneapolis do 3,503 Cleveland Mar. 8.. 6,500 Dallas do.. 5,000 Minneapolis Mar. 9... 3,000 New York. ..do 125 0; Amounts represent bills rediscounted unless marked with footnote 1. 1 Acceptances sold. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISCOUNT AND OPEN-MARKET OPERATIONS. 197 No. 57.—Rediscounts and sales of bills between Federal Reserve Banks during 1920—Con. CHRONOLOGICAL TABLE—Continued. [In thousands of dollars.] Rediscounted or sold by Federal Reserve Bank of «— Discounted or F p ed u B e rc r a a h n l a k s R e of d e — s b er y ve Date. Y N o e r w k. P p d h h e i i l l - a a . - m R o ic n h d - . la A n t t - a. c C a h g i- o. Lo S u t. is. n M o e l a i i n s p . - - K C s i a a t s n y - . Dallas. F c S i r s a a c n n o * . Dallas Mar. 11 4,000 do 5,000 Kansas City ...do 5,000 Cleveland Mar. 12 Boston ...do 10^000 Do Mar. 18 10,000 Cleveland do 6,000 Dallas do . . 3,000 New York . .do 14 Boston Mar. 19 5,000 Cleveland Mar. 22 16,666* 5,000 5,000 Minneapolis.... ...do 7,500 Boston do 16,666* Cleveland Mar. 23 5,000 Minneapolis . do . . 2,529 Cleveland Mar 24 5,000 Dallas do 5,000 Mar. 26 5,000 Boston Mar. 29 12,000 Atlanta do 3,000 Cleveland ...do 5,000 5,000 Dallas Mar. 31 5,000 New York do . 5,000 Cleveland Apr. 1 5,000 10, 000 Minneapolis do 5,000 Dallas ...do 5,000 Cleveland Apr. 2 3,000 San Francisco do l2 871 7,500 New York Apr. 3 5,000 5,003 Do Apr. 5 7,500 5,000 Boston Apr. 8 13,000 Do Apr. 9 5,000 Dallas .do 10,000 Cleveland Apr. 10 16,000 Boston Apr 12 4,000 7,000 Cleveland ...do 10,000 5,000 Boston Apr. 13 "37666" Cleveland do 5,000 Boston Apr. 15 4 500 New York Apr 16 5,000 5,000 10,000 5,000 5,000 6,000 Cleveland do 5,000 Dallas do ' 5,000 New York Apr. 19 .- 5,000 Cleveland dn 5,000 5,000 Boston . .. j Apr 20 5,000 5,000 Cleveland An- 5,000 Do Apr. 21 10,000 New York Apr. 22 6,000 6,000 Cleveland do "16," 666* 5,666* New York Apr. 23 3,500 10,000 3,500 Do Apr 24 3,000 San Francisco.. do - 1,000 Boston Apr. 26 6,000 New York do 4,000 10,000 5,000 Boston Apr. 27 - ! 5.000 New York Apr. 28 5,000 Do Apr. 29 *3," 5O6" 5.000 3,000 Cleveland . do 5,000 1 ' New York Apr. 30 5,500 5,000 3,000 4,000 116,058 Boston May 3 5.000 New York.. do ] 1 ' 3,000 6,000 Cleveland do - 10 000 Do May 5 8,000 Boston May 6 10,000 New York ...do 3,500 10,000 Cleveland . do... . 3, 000 Boston _ May 7 5,000 Cleveland May 10 5,000 2,000 New York ...do 5,000 Do May 12 3,000 1,000 Do May 13 2,000 2,000 4,000 Cleveland do.. . "16," 666" New York May 14 5,000 7,000 a Amounts represent bills rediscounted unless marked with footnote 1. Acceptances sold. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

198 ANNUAL REPORT FEDERAL RESERVE BOARD. No. 57.—Rediscounts and sales of bills between Federal Reserve Banks during 1920—Con. CHRONOLOGICAL TABLE—Continued. [In thousands of dollars.] Rediscounted or sold by Federal Reserve Bank of a— Discounted or purchased by Federal Date. Reserve Bank of— Y N o e r w k. 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. Boston. May 17 10,000 New York ...do 5, 000 Cleveland ...do " 5,000 Do May 18.. 5,000 Do May 19.. 7,000 7,500 New York May 20 . 3,000 f, 000 8, 000 5,000 Cleveland ...do 5,000 ' New York May 21.. 13,000 5,000 2,000 Cleveland May22.. 10,000 New York May24.. 2,500 5,000 Boston May 25.. 3,000 New York ...do 300 5. OftO Do May26.. ... .. .J 3,000 Cleveland ...do 3,500 Boston May 27 10,000 New York ...do O KTtf\ 3,000 Cleveland ...do ' 2,500 New York May28.. 4,000 3,000 Cleveland ...do 5,000 2,500 New York May29.. .. """ 5,000 Cleveland ...do .. Q nnn 1,500 New York ...do ' O Do Junel..' U1 5,000 7,000 Cleveland ...do ] * 2,000 Do June 2.. i 10.000 New York June 3.. 10,000 Do June 4... i 4,000 5,000 Boston June 5 10 000 1 New York ...do 3,000 3,000 3,000 Cleveland June 7.. J 5,000 Do June 8.. J 5,000 2, 750 Boston June 9... i. 1,500 New York .do. .. 200 Cleveland ...do i 100 4,000 Boston June 10.. 4,000 Cleveland ...do 10,000 Boston June II..1 7,000 2,000 Cleveland ...do 4,000 New York June 12.. 50 Cleveland ...do 4,000 Do June 3 4..;.. 2,500 Boston June 15.. 10.000 New York ...do j 400 3,500 Cleveland ...do ...J 5,000 New York June 16.. . 5,000 Cleveland ...do 5,000 2.500 New York June 17 2,000 Do June 18 5,000 Do June 19.. 7,000 Do June 21..I 2,500 Cleveland ...do..... *"io,"666" New York June 22.. 4 250 Boston June 23.. i 5,003 10, 000 New York . .do ... 600 15,000 2,000 Cleveland ...do 2,500 Do June 25 . 10,000 4,000 3,000 3,000 New York June 26.. 3, 502 Boston June 28.. 1,500 Cleveland ...do 5,000 8,000 3,000 Boston June 29.. 6,000 1,500 Cleveland ...do 10,000 Boston June 30 3, 000 Do Julyl... 10, 000 6,000 5,000 San Francisco ...do Cleveland ...do 12,000 New York July 2 .. 8,000 Cleveland do ! 2,000 2,000 4, 007 Boston July 6..J 10,000 6,010 C Ph le i v la e d la e n lp d hia Judlyo 7...1110,014 74*6" ""5,'666* ""*2," 5O6" Cleveland do 5,000 9,000 1, 500 Boston July 8 2,500 3,025 Cleveland do 10,000 1,262 2,000 New York July 9.. . . 1,619 3,500 4,000 Do July 10.. Q £7Q a Amounts represent bills rediscounted unless marked with footnote 1. l Acceptances sold. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISCOUNT AND OPEN-MARKET OPERATIONS. 199 No. 57.—Rediscounts and sales of bills between Federal Reserve Banks during 1920—Con. CHRONOLOGICAL TABLE—Continued. [In thousands of dollars.] Rediscounted or sold by Federal Reserve Bank of «— Discounted orpurchased by Fede B r a al n k o R f— eserve Date. Boston. Y N o e r w k. m R o ic n h d - . la A n t t - a. c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - K C an it s y a . s Dallas. Boston July 12 10,000 4,500 Cleveland ...do 3,000 2,500 Boston July 14 1,269 1,500 Cleveland ... do 1,500 Boston July 15 2,000 5,500 do 5,000 4,000 3,000 New Y ork July 16 *75 Do . do . . 1,250 9,000 3,000 4,012 Cleveland do 1,500 Boston July 19 5,000 Cleveland ...do 10,000 110,001 1,250 Boston . . July 20 10, 000 New York ...do 3,058 4,000 2,000 Cleveland July 21 2,500 4,000 San Fraiicisco ...do 110,001 New York July 22 3,512 7,000 Boston July 23 5,000 New York do 1,562 1,000 Cleveland do 5,000 1 500 New York July 24 1,662 2,500 Boston July 26 762 2,000 5,000 San Francisco .do. 25,003 Cleveland July 27 3,550 2,500 Boston July 28 1,055 3,000 Cleveland. do 10 000 2 616 New York July 29 3,010 3,000 Cleveland. do 2,000 4,000 Boston July 30 4,999 New York do. 1,500 3,511 Cleveland do 1,428 Boston July 31 10 000 Cleveland. .do.. 3,000 1,000 New York Aug. 2 4,000 Cleveland do 5,000 1,899 6,004 Boston. Aug. 3 1,000 Cleveland do 3,992 Boston. Aug. 4 4,000 1,500 Do Aug 5 2,500 4,000 Cleveland do 10,000 1,048 2,000 Boston Aug. 6 4,979 1,000 6,000 Cleveland do 2,025 Boston Aug. 7 2,064 Cleveland do 2,000 Boston. . Aug. 9 10,000 1,000 5,000 Cleveland Aug. 10 4,002 Boston Aug. 11 867 Cleveland.. . .do. 1,000 Do Aug. 12 115,050 5,000 3,000 Boston Aue. 13 4,000 Cleveland do 1,500 Ran Francisco. .do. 15,012 Boston Auf. 11 10,000 Cleveland ...do 2,250 Boston Aug. 16 5,000 3,500 5,000 Cleveland.. . do. 4,706 Boston Au?. 17 10 000 1 2.000 Cleveland do 2,500 7,000 Boston. i*ug. IS 2.999 2,500 Do. Au<*. 19 5,000 1,000 CJrvoland. .do 3,000 3,500 Boston An" 2) 3,000 3,000 Cleveland .do. 3,000 2,000 3,003 2,000 Do Aug. 21 3,510 1,500 Boston Aug. 23 *"3*566"""i'soo" New York do.. CJev^and-. do 5,000 762 1,500 Ban Francisco .do.. 15,002 Cleveland Aug. 24 3,000 Boston Aug. 25 10.000 2.000 1,300 Cleveland. do 18,001 3,000 1,702 2,000 Philadelphia.... -Au". 20 110 051 1 Cleveland. do i 5,500 \ 1 Am rails r3£>?3S3nt bills r^discoanted un.oi3 marked with, fjotnoto 1. 1 Acceptances sold. 45525°—21 14 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

200 ANNUAL REPORT FEDERAL RESERVE BOARD. No. 57.—Rediscounts and sales of bills between Federal Reserve Banks during 1920—Con. CHRONOLOGICAL TABLE—Continued. [In thousands of dollars.] Rediscounted or sold by Federal Reserve Bank of a— Discounted or purchased by Federal Date. Reserve Bank of— Y N o e r w k. m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n i e s. - K C a i n t s y a . s Dallas. Boston Aug. 27 10,000 10,000 3,000 Cleveland ...do 1,758 5,002 5,000 Boston Aug. 30 5,000 1,000 7,000 Cleveland ...do 2,000 Boston Aug. 31 4,999 Cleveland ...do.... 5,000 2,030 3,500 Boston Sept. 1 10,000 10,000 Cleveland ...do 15,000 2,000 4,000 Do . .. Sept. 2 2,750 3,000 3,000 Boston Sept. 3 20,000 4,999 2,000 Cleveland ...do.. 10,000 2,750 Do Sept. 4 3,666 Boston Sept. 7 20,000 Philadelphia ...do 4,000 Cleveland . .do.. 2,052 3,999 7,000 Do Sept. 8 797 Boston.. Sept. 9 4,000 Cleveland ...do 5,008 7,000 New York Sept. 10 Ul Cleveland ...do.... 2,754 4,000 4,500 Do Sept. 11 2,002 Boston Sept. 13 5,000 Philadelphia ...do. . 5,000 Cleveland ...do.... 2,146 5,000 5,000 Philadelphia Sept. 14 3,000 Boston Sept. 15 "16,666* 5,000 Cleveland .. .do 5,000 6,000 Boston Sept. 16 2,266 6,000 Cleveland ...do 5,000 Boston Sept. 17 5,000 Philadelphia ...do 1,725 5,000 Cleveland do. .. 5,000 Boston Sept. 18 5,000 Philadelphia .do.. . 3 750 5,000 Cleveland ...do 3,000 4,999 Philadelphia ...do 3,002 3,000 Cleveland ...do... 3,000 11,009 Boston Sept. 21 10,000 Philadelphia ...do ... 5,000 Cleveland ...do 5,000 10,000 Philadelphia Sept. 22 1 800 Cleveland ...do 110,001 1,000 5,046 3,500 Boston Sept. 23 10,000 1,707 Cleveland ...do 2,693 Boston Sept. 24 3,000 1,500 5,000 7,000 Cleveland . do 1,400 10,000 1 000 3,500 Philadelphia Sept. 25 2,800 Cleveland ...do 2,500 New \ ork Sept. 27 4,000 12,000 Cleveland ...do 4,250 3,000 Boston Sept. 28 10,000 3,160 Cleveland do ***3*284* 5,004 Boston Sept. 29 5,000 New York 3,003 Philadelphia ...do 5,000 Cleveland Sept. 30 3,000 3,500 Boston Oct. 1 ""5," 666' "*4,*998* Cleveland ...do 1,300 Do Oct. 2 2,000 i, 666 Boston Oct. 4 10,000 Cleveland .. do 2,016 4,000 4,000 9,000 Philadelphia Oct. 5 110,072 Cleveland ...do 2,200 Boston Oct. 6 5,000 6,000 7,500 Philadelphia . do... 5,000 Cleveland .do 1,608 4,500 Boston. Oct. 7 3,062 Cleveland ...do 4,000 1,000 6,010 Boston Oct. 8 "**3*666* Philadelphia do .. 2,000 Cleveland ...do i,009 Do Oct 9 500 2,500 Boston Oct. 11 4,000 Cleveland . do 4,010 Amounts represent bills rediscounted unless marked with footnote 1. l Acceptances sold. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISCOUNT AND OPEN-MARKET OPERATIONS. 201 No. 57.—Rediscounts and sales of bills between Federal Reserve Banks during 1920—Oon. CHRONOLOGICAL TABLE—Continued. [In thousands of dollars.] Rediscounted or sold by Federal Reserve Bank of a— Discounted or purchased by Federal Date. Reserve Bank of— Y N o e r w k. m R o ic n h d - . Atlanta. Chicago. L S ou t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. Boston Oct. 13.. ......... 15,000 5,001 Cleveland do "*7,*048' **"5,'566" Do Oct. 14 5,005 13,000 Boston Oct. 15.. 115,074 1 4,006 Philadelphia do 5,000 4,000 Cleveland do .. 1.976 5,000 6,500 Do Oct. 16 1,500 3,500 Boston Oct. 18 5,000 2,000 2,088 Cleveland .do 1 1*. 500 3,500 Boston Oct. 19.. 5,000 3,000 1,000 Cleveland do 3,125 5,000 Boston Oct 20 3,999 4,000 4,584 Cleveland do 5,000 3,500 Do Oct. 21.. 636 4,000 Boston Oct. 22.. 10,000 10,000 1,500 2,292 Philadelphia do 5,000 Cleveland ...do 10,000 804 1,000 Oct 25 3,000 3,003 Philadelphia ...do 5,000 4,000 do 4 020 13,000 Do Oct. 26.. 1,655 Oct 27 2,500 4,001 do 5,049 6,000 Boston Oct. 28 3,000 do.... 2,504 5,003 Boston Oct. 29.. 15,0*00 2,000 2,000 do 10 000 7,000 Do Oct. 30.. 2,587 5,000 2, 002 Boston Nov. 1 10 000 5,000 Philadelphia do . 2,000 Cleveland do 3,148 Nov 3 4 507 Philadelphia do 4,000 Cleveland ..do 1,414 2,000 Philadelphia Nov. 4 10,000 Cleveland ...do. .. 15,000 5,000 Nov 5 2,000 Philadelphia .do 1 5,012 Cleveland do 3 03i 2,500 Do Nov 6 3 253 2,000 Boston Nov. 8.. 10,000 4,000 do *3*507* Nov. 9 2 000 do 2 050 5,000 6,000 Nov. 10 1 000 Cleveland do 5,000 1,500 Boston Nov. 11. 15,000 Cleveland ...do.. . 15,000 Boston Nov. 12. i 7,017 2,000 3,343 do 1 52K 5,003 Do Nov. 13. 700 2,000 Nov 15 2,024 C B l o e s v t e o l n and .. N .d o o v. 16 5 1 , ,0 0 0 0 8 0 2,000 5700O Cleveland do 2 003 Philadelphia . Nov. 17 800 2,500 Cleveland . do 1,500 Boston Nov. 18 10 000 Cleveland do 4,200 Do Nov. 19. 2,077 4,000 2,500 Do Nov. 20. 2,200 1,500 Do Nov. 22. 4,850 3,000 8,000 Do Nov. 23. 3,000 5,000 Do Nov. 24. 2,422 8,000 San Francisco do 16 917 Boston Nov. 26. 10,000 2,000 Cleveland do "**i,*8o6' "*3,'666 Do Nov. 27. 3,000 2^009 3,000 Do Nov. 29. 2,000 1,600 Do Nov. 30. 4,059 "*7,'6i4* 3,500 a Amounts represent bills rediscounted unless marked with footnote 1. l Acceptances sold. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

;02 ANNUAL REPORT FEDERAL RESERVE EOARD. No. 57.—Rediscounts and sales of bills between Federal Reserve Banks during 1920—Con. CHRONOLOGICAL TABLE—Continued. [In thousands of dollars.] Rediscounted or sold by Federal Reserve Bank of«— Discounted or purchased by Federal Reserve Bank of— Date. ^ ! Atlanta. Chicago ^ Kansas P h iladpi r> hia Dec 1 • 4 500 Cleveland . .do. . 3,000 8,012 3,500 Philadelphia - DPP. 2 .. 1,000 Boston Dec. 3... 10,000 1,500 i Philadelphia . ...do 3,041 Cleveland do. . 1,000 Philadelphia Dec. 4... 3,000 do ! 2,002 Philadelphia Dec. 6 1,000 Cleveland ...do.... 3,800 2,001 11,000 Do Dec. ?... 2,752 3,009 Dec 8 Philadelphia .do 1 8 2,010 do 1,680 Do Dec. 9 1,600 1,500 Dec. 10.. 3,001 Cleveland do 200 4,500 Philadelphia Dec. 11.. 5,013 NPW Yorlc do il Cleveland ...do 1,312 Dec. 13.. 10,000 .do 7,000 4,000 3,000 Dec. 14 4,033 do 2,500 Dec. 15.. 3,000 3,003 Cleveland ...do 3,800 7,500 Do Dec. 16.. 500 Do. Dec. 17.. 1,200 2,013 Dec. 20.. 5,009 Philadelphia ...do 2,500 do 4,506 Philadelphia Dec. 21.. 1,500 Cleveland .. ...do 2,001 Philadelphia Dec. 22.. 4,000 .do. . 3,666 Dec. 23.. 10,000 Philadelphia ...do 3,000 . .do. 3,500 9,041 6,000 Do Dec. 24 4,001 5,000 Do Dec. 27.. 1,800 4,000 8,000 Philadelphia Dec. 28.. 3,600 ...do 2,666" Bost J o ) n o D D e e c c . . 2 30 9 . . . . 10,000 3,000 1,000 1,500 . do. .. 4,002 4,000 Dec. 31.. 1,500 Cleveland • --- ...do 2.500 5;0C0 a Amounts represent bills rediscounted unless marked with footnote 1. 1 Acceptances sold. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 48.—Average rate charged on bills discounted, by months during 1920. M [Per cent.J OO CO Feder B a a l n R k e . serve 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- De b c e e r. m- Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . Y 19 e 1 a 8. r Boston 4.89 5.54 5.68 5.60 5.60 6.24 6.31 6.47 6.50 6.44 6.52 6.60 6.03 4.25 4.17 New York 4.86 5.42 5.53 5.48 5.56 6.19 6.25 6.25 6.47 6.47 6.41 6.51 5.97 4.14 4.06 Philadelphia 4.83 5.46 5.44 5.46 5.43 5.51 5.54 5.57 5.58 5.59 5.61 5.67 5.44 4.13 4.09 Cleveland. . 4.92 5.46 5.58 5.71 5.64 5.75 5.84 5.81 5.82 5.88 5.87 5.87 5.66 4.24 4.21 Richmond 4.96 5.50 5.63 5.59 5.58 5.95 5.96 5.96 5.98 5.98 5.98 5.99 5.78 4.32 4.38 Atlanta 4.92 5.55 5.67 5.68 5.72 5.82 5.94 6.04 6.04 6.22 6.65 6.46 5.97 4.25 4.06 Chicago 4.86 5.63 5.79 5.77 5.85 6.64 6.65 6.65 G. 76 6.72 6.71 0.75 6.32 4.35 4.24 St Louis 4.88 5.62 5.67 5.78 5.78 5.94 6.04 5.84 G.06 6.10 6.60 7-08 5.98 4.26 4.27 Minneapolis 5.05 5.70 5.77 5.81 5.89 6.78 6.77 6.80 6.81 6.81 6.78 6.77 6.40 4.54 4.72 Kansas City 5.52 5.79 5.80 6.55 6.81 6.72 6.62 6.45 6.78 7.13 7.41 7.15 6.65 4.74 4.80 Dallas 4.78 5.32 5.59 5.66 5.73 5.95 5.87 5.76 5.88 5.91 5.98 5.96 5.78 4.46 4.55 San Francisco 4.81 5.55 5.70 5.70 5.84 5.93 5.95 5.96 5.97 5.98 5.98 5.98 5.82 4.50 4.54 All hanks—1920.. 4.90 5.52 5.64 5.67 5.74 6.20 0.21 6.19 6.39 6.40 6.45 6.49 6.02 1919.. 4.18 4.14 4.15 4.18 4.16 4.19 4.14 4.12 4.18 4.19 4.53 4.07 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. 20 1 No. 49.—Average maturity of bills discounted, by months during 1920. [Days.] Federal Reserve Bank. January. February March. April. lay. 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- Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . Y 19 e 1 a 8 r . Boston 12.59 14.36 15.95 12. 88 12.27 12.99 14.26 11.73 12.81 12.37 12.18 13.12 13.14 13.12 18.93 New York... 9.63 7.32 7.11 8.93 8.66 7.10 G. 76 7.37 7.63 6.95 6.30 5.79 7.34 7.20 7.31 Philadelphia 14.87 12.56 11.66 16.39 13.54 12.32 13.98 10.00 10.93 15.82 12.92 13.66 13.24 7.29 16.51 Cleveland... 17.20 17.71 7.79 17.56 16.20 1-7.31 21.86 16.42 15.93 19.43 14.57 11.18 16.45 14.06 17.51 Richmond... 10.93 11.26 11.83 12.25 12.40 15. 74 16.76 14.37 15.29 15.42 15.25 14.74 13. 75 10. CO 10.40 Atlanta 20.80 21.91 25.40 26.68 I 27.85 25.59 28. 91 25.17 26.21 25.20 22.97 25. 73 25.26 17. 83 19.01 Chicago 25.14 30.90 35.15 32.18 j 31.23 35.75 34.36 34.76 39.39 38.42 36.78 39.24 34.74 19.33 18.59 St. Louis 19.44 19.32 18.29 23.47 | 28.86 26.38 30.13 27.25 27.59 26.40 25.29 26.88 24.77 13.12 19.89 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISCOUNT AND OPEN-MARKET OPERATIONS. 203 No. 57.—Rediscounts and sales of bills between Federal Reserve Banks during 1920—Con. SUMMARY, BY MONTHS DURING 1920. [In thousands of dollars.] Rediscounted or sold by Federal Reserve Bank of— Total. Phila- Cleve- Rich- Boston. New York. delphia. land. mond. Atlanta. Month. Dis- Pur- Pur- Dis- I Pur- Dis- Pur- Dis- j Discounted chased chased counted chased counted chased counted counted bills. bills. bills. bills. bills. bills. bills. bills. billr. January 270,000 25,833 150,000 25,608 85,000 25,000 February 115,600 20, 856 20,841 115,600 March 208,029 79 65,000 100, 500 50 20,000 April 327,500 18,429 2,371 67,000 75,000 May 270, 302 3,500 75,000 13, 802 June 272, 852 5,014 5,003 90,000 20,852 July 320,641 45,102 35,026 95, 000 33,307 August 297, 561 43,121 35,115 80,000 42,071 September 440,155 10,012 55,000 95,000 52,178 October 393,101 25,146 50,000 25,146 65,000 38,488 November 293, 062 18,946 55,000 18,946 40,000 53,047 December 251,442 9 40,000 54,252 Total 3,460,245 212, 547 20, 846 375,000 147,215 371,600 700,000 307,997 Rediscounted or sold by Federal Reserve Bank of— 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- Month. Dis- Pur- Dis- Pur- Dis- Dis- Dis- Purcounted chased counted chased counted counted counted chased bills. bills. bills. bills. bills. bills. bills. bills. January 10,000 200 February.. March 5,000 17,529 April 73,500 67,500 6,000 18,500 22,000 4,000 10,058 May 53,000 35,000 40,000 32,000 18,000 June 46,000 11 8,000 44,000 42,000 22,000 July 47,500 10,076 35,999 26,000 27,074 55,761 August 8,001 47,977 35,500 26,511 65,502 September. 20,000 10,012 47,997 33,000 57,230 79,750 October 10,000 45,497 38,500 71,616 74,000 November. 4,000 31,000 57,015 53,000- December.. 27,000 66,190 64,000 Total 255,000 28,178 309,499 6,000 293,500 411,636 436,013 10, 258 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

204 ANNUAL REPORT FEDERAL RESERVE BOARD. No, 57.—Rediscounts and sales of bills between Federal Reserve Banks during 1920—Con. SUMMARY FOR THE YEAR, BY FEDERAL RESERVE BANKS. [In thousands of dollars.] Rediscounted or sold by all Federal Reserve Banks com- Rediscounted or sold by Federal Reserve Bank of— bined. Discounted or F p e u d r e c r h a a l s R e e d s e b r y ve Boston. New York. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Bank of— Dis- Pur- Total. counted chased bills. bills. Pur- Dis- Pur- Dis- Pur- Dischased counted chased counted chased counted bills. bills. bills. bills. bills. bills. Boston 1,000,557 969,884 30,673 110,000 30,673 56,500 370,000 New York 490,648 479,581 11,067 584 31,000 50 15,000 Philadelphia 179, 728 144,579 35,149 15,000 35,149 30,000 Cleveland 1,478, 882 1,406,172 72; 710 5,036 115,000 33,671 40,100 230,000 Richmond Atlanta 57,087 52,000 5,087 5,087 25,000 17,000 10,000 Chicago 173,590 168,500 5,090 5,090 90,000 58 500 10,000 St. Louis 13,000 13,000 5,000 8,000 Minneapolis 40,029 40,029 37,500 Kansas City 25,049 20,000 5,049 5,049 20,000 Dallas . 143,000 143,000 5 000 103 000 35,000 San Francisco 71,222 23,500 47,722 10,000 47,722 Total 3,672,792 3,460,245 212,547 20,846 375,000 147,215 371,600 50 700,000 Rediscounted or sold by Federal Reserve Bank of— San F D p e u d is r e c c r h o al a u s n R e t e e d s d e b r o y v r e Atlanta. Chicago. St. Louis. M ap i o n l n i e s. - K C a i n ty sa . s Dallas. F ci r s a c n o - . Bank of— Dis- Dis- Pur- Dis- Pur- Dis- Dis- Dis- Purcounted counted chased counted chased counted counted counted chased bills. bills. bills. bills. bills. bills. bills. bills. bills. Boston 18,999 6,000 133,971 77,500 121,914 75,000 New York 41,045 142,000 iih' 60,000 46,000 77,025 67,511 10,258 Philadelphia . 29 977 25,000 19,000 23,102 2,500 Cleveland 217,976 107,000 28,003 75,499 6,000 151,000 179,595 290,002 Richmond Atlanta Chicago 10,000 St. Louis Minneapolis 2 529 Kansas City . Dallas San Francisco 12 500 1,000 Total 307,997 255,000 28,178 309, 499 6,000 293,500 411,636 436,013 10,258 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 58.— Volume of United States certificates oj indebtedness purchased, by months during 1920. [In thousands of dollars.] Distribution by classes. Tempo- Federal Reserve Bank. J a a r n y u . - F a e r b y r . u- March. April. May. June. July. August. Septem-October. No b v e e r. m- D b ec e e r m . - r t a if r i y c a c t e e r s - Total. ch p a u s r e - d ot A h l e l r. from U.S. Treasurer. Boston 23,793 34,345 6,493 83,264 894 53,476 62,763 26,621 60,103 46,817 70,310 84,257 553,136 471,000 82,136 New York 156,217 98,005 653,869 754,010 35,775 762,769 382,799 56,404 669,964 76,660 153,007 481,851 4,281,330 3,836,000 445,330 Philadelphia 5,238 11,398 388 26,513 1,494 28,510 61,286 29,694 9,063 23,576 145,052 15,171 357,383 311,000 46,383 Cleveland 85,077 22,025 183,500 47,016 84,528 13,350 1,875 134,518 5,000 90,000 211,700 878,589 831,000 47,589 Richmond 14,000 9,000 13,000 27,000 8,000 1,000 1 4,000 8,000 1 84,002 84,000 2 Atlanta 889 5,000 4,000 1 3,000 4,000 1,000 1,007 18,897 17,000 1,897 Chicago 306,625 53,642 241,632 727 3,347 34,437 3,150 2,369 2,951 20,528 60,147 118,387 847,942 800,000 47,942 St. Louis 3,390 4,657 13,186 10,958 464 27,168 861 788 3,997 408 1,311 7,300 74,488 59,000 15,488 Minneapolis 13,p80 2,063 74,310 19,087 11 25,321 1,016 40 2,128 485 106 4,049 141,696 140,000 1,696 Kansas City 29,534 29,791 47,909 2,966 158 9,226 1,821 1,243 292 3,301 107 1,731 128,079 112,000 16,079 Dallas 1 9,000 117,000 9,000 31,370 5,270 50 1,000 1,000 3,000 176,691 176,000 691 San Francisco 4,532 25,370 141,100 16,601 580 118,640 40,203 4,237 1,152 71,242 15,799 445,745 425,000 20,745 Total—1920 642,376 304,296 1,496,387 997,143 42,723 1,178,445 584,519 124,321 890,306 182, 927 600,282 944,253 17,987,978 7,262,000 725,978 1919 828,447 326,327 88,694 83,842 86,537 150,808 232,845 180,874 1,870,088 72,453 58,887 758,361 [4,736,163 1918 511,542 518,192 1,089,232 321,326 184,426 415,800 21,797 30,222 85,582 631,044 219,309 1,747,880 5,776,352 Distribution by classes of certificates purchased in 1920: Temporary certificates purchased from U. S. Treasurer. 599,000 279,000 1,482,000 982,000 1,093,000 533,000 61,000 726,000 135,000 555,000 817,000 7,262,000 Allother 43,376 25,296 14,387 15,143 42,723 85,445 51,519 63,321 164,306 47,927 45,282 127,253 725,978 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOLD SETTLEMENT FUND. O No. 59.—Summary oj transactions, Jan. 1 to Dec. Sl 1920, 7 FEDERAL RESERVE BANKS' FUND. [In thousands of dollars.] Interbank transfers. Federal Reserve Bank. B De 1 a c 9 la . 1 9 n 3 . c 1 e , G d o r l a d w w al i s th . - de G po o s ld its. a w n t i d o th f a t u d r g n a r e a d n n w s . t f a s e ' l r s s t a d ra g e A n e p g s n o f g t s e s r i r e ' t s s g f u a f a r t n n o e d d m . Debits. Credits. 3 $ Boston 34,351 7,434 40,514 177,434 110,514 j 1,290,726 New York 5,957 115,371 454,544 245,371 602,544 1,008,316 1,255,627 Philadelphia. 31,679 8,984 106,382 193,484 127,382 659,311 687,526 Cleveland 43,848 84,905 29,389 156,905 29,389 1,671,017 991,508 Richmond 25,201 11,949 91,432 85,449 91,432 749,060 844,222 Atlanta 19,333 3,486 89,637 96,286 100,737 219,409 393,307 Chicago 76,479 7,085 79,997 97,085 154,997 431,080 554,108 I St. Louis 17,898 34,617 61,096 92,617 89,596 110,787 365,262 Minneapolis.. 4,872 6,319 15,946 10,319 21,046 274,027 363,610 Kansas City 25,933 7,042 18,299 31,042 20,299 456,133 469,080 Dallas 17,077 25,858 44,099 43,358 50,099 574,760 688,293 San Francisco 27,109 226,634 155,605 428,634 287,490 106,959 140,096 i Total... 329,737 539,684 1,186,940 1,657,984 I 1,685,525 I 7,551,585 7,551,585 w Net changes in owner- o Settlements from Jan. 1,1920, to Dec. 31,1920, inclusive.Balance in ship of gold through fund at transfers and settle- Federal Reserve Bank. close of ments. business Dec. 31, Net debits. Total debits. Total credits Net credits. 1920. Decrease. Increase. Boston 6, G30,498 7,194,903 5G4,405 40,116 72,685 New York 564,539 23,1G2,832 22,598,293 45,902 317.228 Philadelphia 8,078.222 8,134,782 1 50,560 50,352 I 84,775 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Cleveland 7,005,731 7,845,923 840,192 77,015 160,683 Richmond 105,917 7,246,874 7,140,957 20,429 10,755 Atlanta 190,240 2,851,506 2,661,266 7,442 16,342 Chicago 221,371 11,349,455 11,128,084 36,048 98,343 St. Louis 247,589 6,342,105 6,094,516 21.763 6,886 Minneapolis 96,726 1,920,682 1,823,956 8,456 7,143 Kansas City... 4,180 4,728,472 4,724,292 23,957 8,767 Dallas 135,277 2,939,973 2,804,696 2,074 21,744 San Francisco. 2,817,870 2,922,492 104,622 23,724 137,759 Total. 1,505,839 85,074,220 85,074,220 1,555,839 357,278 471,555 471,555 O FEDERAL RESERVE AGENTS' FUND. o [In thousands of dollars.] Total Total Balance at Federal Reserve Agent at- B De a 1 c 9 l . 1 a 9 n . 3 c 1 e , with G dr o a ld wals. de G po o s ld its. t t r o a G n b o s a f l n e d k rs . fr t o r m a G n o s b f ld e a r n s k. w i i t n t r h c a d n lu r s a d f w e in r a s g ls, i d t n r e c a p l n u o s d s fe i i t n r s s g , b D c u l e o s c. s i n e e 3 o s 1 f s , to bank. from. bank. 1920. Boston 60,000 150,000 100,000 70,000 170,000 220,000 270,000 110,000 New York 110,000 57,000 148,000 130,000 205,000 130,000 35,000 Philadelphia.. 74,389 125,000 8,500 21,000 184,500 146,000 193,000 121,389 Cleveland 75,000 12,000 72,060 12,000 72,000 135,000 Richmond 38,000 95,000 34,500 73,500 95,000 108,000 51,000 Atlanta 58,000 85,700 11,100 92,800 96,800 92,800 54,000 Chicago 235,144 233,000 171,000 75,000 90,000 308,000 261,000 188,144 St. Louis 53,931 106,000 62,100 28,500 58,000 134,500 120,100 39,531 Minneapolis... 19,800 7,500 5,100 4,000 12,600 4,000 11,200 Kansas City... 37,360 62,000 40,000 2,000 24,000 64,000 64,000 37,360 Dallas 14,484 47,000 35,250 6,000 17,500 53,000 52,750 14,234 San Francisco., 110,219 80,500 131,885 202,000 212,385 202,000 99;834 Total 886,327 1,060,700 451,350 498,585 1,118,300 1,559,285 1,569,050 896,692 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GO,—Weekly operations through the banks' gold settlement jund during 1920. fcO o [In thousands of dollars.] oo All Federal Reserve Banks. Federal Reserve Bank of New York. Clearings and trans- Clearings. Transfers. fers combined. Week ending- Total cle T a o ri t n a g l s. tra T n o sf ta e l rs. c t c r o l a e m n a a s n b r f i d i e n n r g e s s d . d G eb ro i s ts s . c G re r d o i s t s s. d N eb e i t t. cr N ed et it. T R t F o ra e e o n s d e t s e h r f r v e e a r e r l s T F r o e f a r d t n o h e s m e f r r e a r l s - d N eb e i t t. cr N ed et it. d N eb e i t t. cr N ed et it. Banks. Reserve Banks. _ Q 1920. Jan. 8 1,859,179 175,869 2,035,048 547,547 474,000 73,547 5,064 49,950 28,661 15 1,602,250 201,746 1,803,996 454,572 420,039 34,533 26,938 110,202 48,731 22 1,735,829 149,681 1,885,510 455,579 469,832 14,253 57,884 11,003 46,881 32,628 29 1,610,742 86,756 1,697,498 452,106 442,118 25,478 301 25,177 35,165 Feb. 5 1,546,782 147,774 1,694,556 406,699 402,290 4,409 199 55,000 50,392 11 1,156,246 76,516 1,232,762 312,505 313,701 1,196 3,014 9,558 7,740 19 1,766,208 128,143 1, 894,351 467,738 472,113 4,375 20,779 50 20,729 16,354 26 1,418,059 63,791 1,481,850 394,391 370,687 23,704 601 601 23,103 I Mar. 4 1,895,534 68,241 1,963,775 500,354 497,318 3,036 !,242 8,242 11,278 11 1,586,348 * 76,648 1,662,996 421,064 402,686 18,378 3,600 3, 14,778 18 1,837,500 79,444 1,916,944 491,556 501,077 9,521 27 31,000 30, 40,494 25 1, 788, 766 157,916 1,946,682 515,473 461,321 54,152 9,991 42,000 32, 22,143 I Apr. 1 1,704,038 148,170 1,852,208 440,909 502,670 61,761 20,700 5,296 15,404 46,357 8 1,575,107 70,507 1,645,614 447,462 417,055 30,407 24,500 24,500 54,907 15 1,705,829 93,081 1,798,910 433,962 491,110 57,148 57,148 22 1,810,490 191,596 2,002,086 471,969 508,401 36,432 53,000 26,328 26,672 9,760 29 1,607,170 127,195 1,734,365 416,031 445,051 29,020 65,500 22,330 43,170 14,150 May 6 1,556,395 154,428 1,710,823 413,324 406,553 6,771 56,000 31,649 24,351 31,122 13 1,532,104 104,808 1,636,912 418,126 422,279 4,153 24,000 27,492 3,492 7,645 20 1,738,934 136,344 1,875,278 428,080 480,039 51,959 44,000 17,599 26,401 25,558 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

27 1,647, 567 136,578 1, 784,145 425,347 454, 550 57, yyi 14, 43, 016 14, 3U4 June 3 1,388,728 137,525 1,526,253 369,487 383,004 13,517 51,860 35, 16,612 3,095 10 1,597,292 130,382 1,727,674 430,126 415,912 14,214 28,000 16, 11,075 25,289 17 1,728,943 138,293 1,867,236 445,449 489,601 44,152 26,500 14, 11,605 32,547 24 1,784,299 136,070 1,920,369 498,885 464, 795 34,090 36,350 17, 18,999 53,089 July 1 1,706,102 151,148 1,857,250 455,160 481,939 26,779 7,502 13, 5,972 32,751 8 1,413,372 150,390 1,563,762 400,475 370,738 29,737 8,300 27, 18,977 10,760 15 1,668,738 84,399 1,753,137 452,933 444,189 8,744 13,197 13,197 21,941 22 1,791,988 114,827 1,906,815 477,583, 499,013 21,430 36,832 4, 32,832 11,402 29 1,593,253 97,715 1,690,968 426,924 433,789 6,865 15,735 5, 10,440 3,575 Aug. 5 1,480,494 130,909 1,611,403 390,823 391, 429 606 12,500 8, 3,859 3,253 12 1,518,094 121,447 1,639,541 424,438 382,451 41,987 13,500 25, 11,802 30,185 19 1,717,123 158,325 1,875,448 438,681 469,137 30,456 23,046 6, 16,626 13,830 26 1,617,172 139,172 1,756,344 431,516 412,382 19,134 10,000 17, 7,470 11,664 Sept. 2 1,564,299 205,861 1,770,160 435,916 393,773 42,143 5,500 39, 34,016 8,127 9 1,371,559 236,973 1,608,532 406,068 324,394 81,674 95, 95,876 14,202 16 1,773,084 130,589 1,903,673 496,859 439,081 57,778 2,203 5, 2,898 54,880 23 1,891, 753 324,163 2,215,916 540,739 455,767 84,972 143, 143,093 58,121 30 1,692,035 174,049 1,866,084 459,126 441,013 18,113 21,002 14,501 32,614 Oct. 7 1,712,017 178,958 1,890,975 503,001 428,261 74,740 3,000 28, 25,980 48,760 14 1,574,179 126,683 1,700,862 430,248 398,576 31,672 7,000 1, 5,600 37,272 21 2,076,163 195,393 2,271,556 554,616 553,389 1,227 45,000 25, 20,000 21,227 28 1,798,435 191,889 1,990,324 489,399 476,552 12,847 15,500 25, 9,500 3,347 Nov. 4 1,503,858 213,869 1,717,727 421,597 391,468 30,129 30,290 52, 21,710 8,419 11 1,503,183 213,370 1,716,553 411,716 404,232 7,484 32,695 42, 9,305 1,821 18 1,743,831 156,155 1,899,986 464,068 479,325 15,257 17,646 22, 4,354 19,611 24 1,408,534 116,705 1,525,239 378,933 379,449 516 14,898 14,398 13,882 Dec. 2 1,662,757 165,084 1,827,841 469,979 425,781 44,198 11,711 11,711 55,909 9 1,468,259 178,940 1,647,199 416,044 364,792 51,252 1,299 39, 38,527 12,725 16 1,514,672 155,273 1,669,945 419,379 412,123 7,256 7,574 13, 5,725 1,531 23 1,578,782 168,784 1,747,566 467,296 407,427 59,869 56, 56,000 3,869 30 1,284,060 133,890 1,417,950 364,521 347,188 17,333 6,569 2,431 14,902 31 (1 day only) 266,085 19,123 235,208 76,053 82,427 6,374 6,374 Total 85,074,220 7,551,585 92,625,805 23,162,832 22,598,293 1,029,518 464,979 1,008,316 1,255,627 1 506,495 753,806 790,310 473,082 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

210 ANNUAL REPORT FEDERAL, RESERVE BOARD. u OPERATIONS THR0U6H GOLD SETTLEMENT FUND BriVEEKS DURIN619Z0 400 200 2200 2000 1800 1600 1400 1200 1000 800 600 400 200 GROSS DEBITS III SETTLEMENTS 2400 2400 2200 2200 2000 2000 1800 1800 1600 1600 1400 1400 1200 1200 1000 1OOO 800 600 400 200 0 6R0SS DEBITS Iff THE FUND THR0U6H SETTLEMENTSAttDTRANSFERS JAIi. FEB. MAR.APR. MAY'JUNE JULY'AU6. SEPT. OCT. JiO/. DEC Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOLD SETTLEMENT FUND. 211 OPERATIONS OF THE NEW YORK BANK THROUGH THE GOLD SETTLEMENT FUND BYWEEKS DURIN61320 zoo zoo to o o A > A A • IO 0 O IOO too GROSS DEBITS THROUGH TRANSFERS. ' GROSS CREDITS THROUGH TRANSFERS. 600 500 400 300 200 100 0 IOO 200 300 400 SOO 600 D: CROSS DEBITS IN SETTLEMENTS. C: CROSS CREDITS IN SETTLEMENTS. ' l NET CAIN OR LOSS TMR0U6M SETTLEMENTS. 700 600 SOO 400 300 200 IOO 0 IOO 200 300 400 SOO 600 POO D: GROSS DEBITS THR0U6H SETTLEMEHTSAND TRANSFERS. C: GROSS CREDITS THROUGH SETTLEMEHTSAND TRANSFERS. wmm JfETGAINORLOSS THRO 'SETTLEMENTSAND TRANSFERS. JAN. EEB, MAR.APR.MAYJUntJULYAMSEP1 (XT. NOV. DEC. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 61.—Net in ownership oj gold through transfers and settlements, by weeks during 1920. to [In thousands of dollars.] to Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Week ending- Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease. increase. Decrease. Increase. j Jan. 8 1,607 28,661 7,266 7,442 3,108 6,679 15 12,712 48,731 2,033 12,267 1,250 10,256 22 4,094 32,628 6,286 15,494 2,095 294 29 938 35,165 3,125 4,462 ' 2,726 9,426 Feb. 5 27,294 50,392 2,401 4,570 7,332 8,466 11 1,900 7,740 4 354 280 8,012 5 045 o 19 22,978 16,354 1,457 1,160 1,774 3,337 27 21,057 23,103 3 687 6,888 845 6 526 Mar. 4... 10,348 11,278 3 066 9,426 4,382 5,114 11 20 110 14,778 117 10 418 1 233 5,217 18 12,515 40,494 1,030 3,508 3 112 5,765 25 16,334 22 143 1,720 7,258 7,885 3,914 Apr. 1 7,360 46,357 7,497 513 592 188 8 33,634 54,907 2 014 28,542 7,676 4,215 15 13,886 57,148 6,310 5,823 3 990 173 22 6,310 9,760 5,021 9,576 3,403 7,596 29 3,241 14,150 1,442 13,442 1,192 5 159 May 6 1,437 31,122 385 11,780 2,952 2 789 I 13 12 314 7,645 383 8,647 290 502 20 3,241 25,558 2,382 11,806 1 809 685 27 - - .. 484 14,304 2,579 7,706 114 732 June 3 . . 7,831 3,095 3,187 11,093 539 2,032 10 . . 6,572 25,289 4,475 1,843 841 3,578 17 1,913 32,547 8,266 2,843 724 615 24 13,850 53,089 20,832 8,747 1,817 1,045 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July l .. ... 30 318 32,751 6,982 1,236 861 693 $ 7 759 10 760 1 419 8 766 362 4,282 15 21 914 21 941 5 759 11 743 3 781 928 22 10,710 11,402 896 9,893 988 2,013 29 ... 9,042 3 575 4 125 3 537 6,432 1,517 Aug. 5 6 626 3 253 9,562 3,451 2,970 555 12 '. 1 373 30,185 7,968 3,535 1,169 26 19 12,579 13,830 5,039 3,803 3,039 1,119 26 12,834 11,664 5,666 6,171 0,507 2,456 Sept. 2. ... 8,273 8 127 922 1,533 7,107 808 9 27,228 14 202 3,695 3,974 5,652 634 16 35,343 54,880 1,815 13,931 5,783 1,309 23 6 743 58,121 5,092 3,332 874 338• 6 30. ... 1 139 32,614 6,752 20,391 3,169 2,101 Oct. 7 478 48,760 13,779 7,684 7,259 2,443 14 11,733 37,272 827 1,956 2,029 6,117 21 2 239 21,227 6,502 15,065 1,388 1,968 28 3 881 3 347 3 526 12 336 3 050 1,410 I Nov. 4 675 8,419 2,810 17,008 832 1,664 11 9,053 1,821 7,580 29 243 244 102 18 26,515 19,611 1,011 3,102 7,925 4,403 24 31,380 13,882 1,639 1,729 2,864 2,719 Dec. 2. ... 4,255 55,909 25,308 5,391 178 158 d 9 14 677 12 725 3 871 1 465 2 869 717 16 8,573 1,531 16,746 8 957 670 2,524 23 3,699 3,869 3,327 21,646 6,642 4,761 30 894 14,902 1,220 12,068 7,439 1,484 31 (1 day only) 1,032 6,374 3,358 3,575 3,261 2,204 Total 251,120 323,805 790,310 473,082 86,868 171,643 140,686 301,369 87,896 77,141 83,576 67,234 Net increase for year 72 685 84 775 160 683 Net decrease for year 317,228 10,755 16,342 to CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 61.—Net changes in ownership of gold through transfers and settlements, by weeks during 1920—Continued. to [In thousands of dollars.] Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Week ending— Total. Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease. Increase. Jan. 8 675 4,953 7,585 1,967 6,866 3,543 40,176 15 31,601 6,399 2,953 4,944 1,306 6,728 70,590 22 10 940 3,958 4,071 11,293 1,456 1 973 47,291 29 51,063 1,547 3,368 3 052 2,161 14,371 65,702 Feb. 5 41,058 186 2 082 7,230 1,626 12,791 83,014 11 3 334 4,652 37 7,830 2 001 389 22,787 o w 19 18,003 8,311 2,736 4,827 719 21,186 51,451 27 10,314 1,271 217 3,430 2,422 1,816 40,788 H Mar. 4 1 513 6 453 4,822 7,664 1 288 198 32,776 11 1,119 8,928 4,087 803 140 11,000 38 975 18 22,577 8,749 3,729 3,064 3,591 5,342 56,738 25 6,972 4,596 2 509 1,998 7,238 27,109 54,838 Apr. 1 21,998 1,057 1,220 7,511 4 626 8,791 53,854 8 665 388 1 480 9 0 2 2 055 16 404 84 536 15 3,349 289 9,437 12,399 8 113 423 60,670 22 8 927 970 1,565 4,115 4,383 6,298 33,962 29 7,827 49 3,031 340 4,319 5 152 29,972 May 6 ... 98 1,219 350 8,328 806 13,426 37,346 o 13 1,762 600 811 5,637 887 2,790 21,134 20 15,155 3,336 1 291 2,935 56 1 348 34,801 27 8,836 3,207 89 2,005 1,647 741 21,222 June 3 33 45 1,284 2,536 1,825 18,518 28,009 10 13,712 2,282 2,214 4,492 2,775 12,043 40,048 17 24,335 3,785 1,182 2,799 407 8,724 44,070 24 3,853 70 1 075 691 1 814 12,319 59,601 July 1 693 2,546 2,072 3,749 1,408 3,117 43,213 8 8,046 3,537 1,154 5,566 i 1,467 260 25,689 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

15 4,534 3,973 1,414 5,085 2,960 5,180 44,596 22 11,288 2,967 2,390 1,933 4,348 8,820 33,824 29 84 4,376 707 1,186 503 1,246 18,165 oi Aug. 5 6,428 1,282 1 639 4,198 1,687 5,773 23,711 8 12 9,202 5 812 ' 692 1,366 39 11,681 38,524 ° 19 7,270 6,176 2,129 1,442 1,751 3,871 31,024 t:> 26 10,506 170 1 426 5,504 42 4,852* 33,899 M Sept. 2 2 462 612 323 5 501 838 8,393 22,451 9 1,320 5,260 3,399 1,048 955 8,437 37,902 M 16. ... 8,268 2,600 1 047 2,255 326 6,225 66,891 01 23.. 45,588 1 577 400 1 407 2,153 9,681 67 653 30 135 710 706 4 250 1 746 827 37,270 Oct. 7. . .. 7,288 5 617 £41 1,477 3 491 18,001 58,399 14 2,857 1,814 612 682 38 19,743 42,840 21 2,358 2 341 363 3 954 3 742 5 893 33 520 -28 1,992 1,107 156 3,948 568 6 274 20,802 Nov. 4. ... 526 5 198 751 10 167 1 525 13 241 31 408 11 2,606 8,712 098 13,002 3,314 5,531 40,953 18 915 2,722 2,147 7,950 5,735 19,448 50,742 24 13,396 1 225 1,832 2,240 285 10,307 41,749 Dec. 2 12,799 1,554 4,324 1 885 1 358 6 249 59,684 9 10,166 114 24 2,703 72 8,751 29,077 16 3,925 2,961 2,063 1 018 709 7,355 28,516 23 13,364 2,750 5,199 1,195 2,852 5,452 37,378 30 7,466 3,560 430 3,538 595 7,150 30,373 31 (1 day only) 3,026 15 1,633 1,404 2,084 4 766 16,366 Total .. . 307,304 208,961 75,841 82,727 55,921 48,778 105,923 114,690 66,431 44,687 146,094 283,853 2,197,970 Net increase for year 6,888 8 767 137,759 471,555 Net decrease for year 98,343 7,143 21 744 471,555 to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CLEARING OPERATIONS. to No. 62.—Operations of the Federal Reserve clearing system during 1920. [Numbers in thousands; amounts in thousands of dollars.] Items drawn on banks in- Total items handled (exclusive of duplications). Items drawn on United States Fede B ra a l n R k e . serve Fe B d a e n ra k l c R i e ti s e e s r . ve Fe b d r e a r n a c l h R c e i s t e y r . ve Di e s r t a r l ic R t e o s u e t r s v id e e .B F a e n d k - O ( s t f h e o e r r v r w e F a r e d d e e d d r i a s d t l r i R i r c e e t c s - t Treasurer. Number. Amount. and branch city. to drawee bank). Number. Amount. Number. Amount. Number. Amount. Number. Amount. Number. Amount. 1920 1919 1920 1919 Boston 7,804 8,055,207 33,258 5,362,447 1,456 345,998 42,518 35,573 13,763,652 12,128,604 New York 11,906 26,029,644 1,845 1,278,262 49,178 17,905,065 10,852 2,465,929 73,781 63,171 47,678,900 50,530,050 Philadelphia 16,593 10,466,187 21,679 3,123,073 1,919 528, 704 40,191 29,547 14,117,964 11,960,067 Cleveland 3,662 3,246,092 5,482 5,822,630 30,313 4,729,053 71 20,771 1,476 226,714 41,004 28,008 14,045,260 10,812,166 Richmond 1,158 2,088,418 2,309 2,189,189 25,528 4,505,282 1,074 208,088 30,069 18,608 8,990,977 7,239,629 Jrtlanta 1,165 968,195 2,152 1,761,041 10,633 1,718,197 880 161,752 14,830 11,844 4,609,185 3,932,333 Chicago 9,086 9,584,711 2,356 2,218,048 41,932 5,765,273 3,447 471,349 56,821 35,427 18,039,381 13,491,520 St. Louis 2,824 3,333,713 2,260 1,675,450 23,823 2,120,383 1,644 223,604 30,551 18,826 7,353,150 5,862,399 Minneapolis 2,902 1,914, 838 17,240 1,438,117 373 63,953 20,515 10,246 3,416,908 2,363,563 Kansas City 3,887 4,334,715 2,184 1,974,774 40,278 4,158,600 3 2,567 1,578 148,295 47,930 27,251 10,618,951 7,911,056 Dallas 1,151 1,161,879 1,143 709,634 23,021 4,303,030 1,145 107,661 26,460 12,007 6,282,204 3,999,123 w San Francisco 1,461 1,311,021 3,714 2,599,793 20,278 1,908, 843 2 255 1,523 1,726,996 26,978 14,651 7,546,908 6,262,913 o I Total: 1920... 63,599 72,494,620 23,445 20,228,821 337,161 57,037,363 76 23,593 27,367 6,679,043 451,648 156,463,440 1919... 43,206 62,481,093 14,833 13,115,715 214,177 46,340,904 43 37,240 32,900 14,518,471 305,159 136,493,423 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Items forwarded to Total items handled (including duplications). Federal Reserve Bank. Bran d c i h s e tr s i c in t. own He b ad ra n of c f h ic e e s , . by Ot b s h e r e r a v r n e c h F B e e s d a . e n r k a s l a R n e d - Number. Amount. Number. Amount. Number. Amount. Number. Amount. 1920 1919 1920 Boston 1,303 963,694 43,821 36,234 14,727,346 13,054,799 New York 307 118,323 384 285,579 13,255 7,646,211 87,727 74,464 55,729,013 56,540,748 Philadelphia... 9,026 2,737,940 49,217 37,004 16,855,904 14,766,937 Cleveland 600 244,841 378 116,803 1,231 1,110,215 43,213 29,789 15,517,119 12,456,799 Richmond 165 96,611 232 130,863 3,266 2,287,494 33,732 20,934 11,505,945 9,304,180 Atlanta 937 212,246 374 538,118 1,743 772,111 17,884 14,256 6,131,660 5,487,105 Chicago 124 80,783 85 36,959 3,490 636,337 60,520 37,592 18,793,460 14,125,543 3 St. Louis 330 51,786 290 56,917 520 182,747 31,691 19,414 7,644,600 6,110,660 Minneapolis 1,074 491,950 21,589 10, 748 3,908,858 2,770,009 Q Kansas City.... 1,682 394,060 372 294,507 4,772 1,362,017 54,756 30,801 12,669,535 10,112,923 O Dallas 784 157,913 285 80,041 1,831 787,183 29,360 14,149 7,307,341 4,865,992 San Francisco.. 1,741 443,245 104,988 1,205 573,429 30,218 16,209 8,668,570 7,305,321 Total: 1920.. 6,670 1,799,808 2,694 1,644,775 42,716 19,551,328 503,728 179,459,351 1919.. 4,844 2,056,827 1,326 1,119,942 30,265 17,230,824 341,594 156,901,016 to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 63.—Number oj member banks, and oj nonmeniber banks on par list, in each Federal Reserve District as oj the 15th oj each month in 1920. 00 Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Date. Non- Non- Non- Non- Non- Non- Member member Member member Member member Member member Member member Member member banks. banks on banks. banks on banks. banks on banks. banks on banks. banks on banks. banks on par list. par list. par list. par list. par list. par list. Jan. 15 431 247 758 325 681 415 843 1,085 586 508 428 425 Feb. 15 . .. 431 248 761 326 682 416 846 1,084 591 568 431 470 Mar. 15 432 248 767 322 G82 419 855 1,077 594 563 433 453 Apr. 15 432 253 770 320 684 419 856 1,079 595 763 426 445 May 15 .. . . 432 254 772 321 687 422 858 1,078 598 766 435 444 g June 15.. . 432 254 771 322 688 423 859 1,078 601 766 437 437 July 15 432 256 774 324 688 427 860 1,077 606 762 •440 433 Aug 15 432 257 775 324 691 432 864 1,077 608 764 444 433 ^ Sept. 15 434 257 777 327 694 433 866 1,076 610 766 445 421 a Oct. 15 . 434 258 782 322 696 434 867 1,072 610 778 448 416 Nov. 15 434 258 782 323 700 437 871 1,077 fill 1,264 454 412 Dec. 15 436 258 780 328 698 439 871 1,080 611 1,267 460 414 Dec. 31 436 255 783 329 698 439 871 1,079 610 1,266 462 408 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Chicago. St. Louis. Minneapolis. Kansas City. Ballas. San Francisco. Total. I Bate. Non- Non- Non- Non- Non- Non- Non- Member member Member member Member member Member member Member member Member member Member member banks. banks on banks. banks on banks. banks on banks. banks on banks. banks on banks. banks on banks. banks on par list. par list. par list. par list. par list. par list. par list. Jan. 15.. 1,375 3,897 538 2,357 923 2,212 1,040 3,350 759 1,225 727 939 9,089 16,985 Feb. 15.. 1,374 3,899 543 2,540 926 2,361 1,050 3,350 762 1,229 743 938 9,140 17,429 Mar. 15.. 1,381 4,194 547 2,574 930 2,925 17O5O 3,363 761 1,243 764 927 9,196 18,308 Apr. 15.. 1,385 4,231 555 2,514 943 2,913 1,055 3,368 773 1,248 772 939 9,240 18,492 May 15.. 1,386 4,235 559 2,513 954 2,913 1,057 3,374 786 1,241 779 941 9,303 18,502 June 15.. 1,391 4,239 563 2,511 967 2,906 1,060 3,390 804 1,250 793 1,038 9,366 18,614 July 15.. 1,395 4,238 562 2,517 976 2,903 1,065 3,388 822 1,238 801 1,042 9,421 18,605 Aug. 15.. 1,396 4,241 567 2,512 2,901 1,071 3,388 831 1,239 808 1,037 9,472 18,605 Sept. 15. 1,401 4,240 567 2,512 2,9.13 1,076 3,395 838 1,254 813 1,026 9,506 18,620 Oct. 15.. 1,403 4,278 568 2,516 992 2,920 1,083 3,395 842 1,258 819 1,028 9,544 18,675 Q Nov. 15. 1,404 4,278 569 2,526 996 2,925 1,083 3,398 846 1,261 824 1,029 9,574 19,188 O Bee. 15.. 1,417 4,270 571 2,526 1,000 2,895 1,088 3,402 848 1,265 832 1,028 9,612 19,172 I Bee. 31... 1,421 4,266 571 2,514 1,009 2,891 1,087 3,391 850 1,274 831 1,027 9,629 19,139 o Ul to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS. to to O No. 64,—Earnings and expenses of each Federal Reserve Bank during 1920. 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 i e s. - K C a i n t s y a . s Dallas. Fra S nc a i n sco. Total. Discounted bills $10,031,301 $49,839,183 $10,420,161 $10,570,827 $5,920,893 :$6,688,342 $25,726,750 $6,382,357 $4,734,259 $6,441,476 $4,044,612 $8, 259,664 $149, 059, 825 Purchased bills 1,613,012 8,323,050 574,074 3,064,409 477,557 337,991 2,989,035 273,425 191,862 211,975 | 73,212 3, 890, 556 22, 020,158 United States securities 554,172 1,975,649 742,235 602,939 276,991 320,451 995,377 391,611 181,990 505,539 270,874 322, 787 i 7,140, 615 Transfers, net earnings 99,391 374,000 77,245 o 1,750 350,969 87, 707 I 987, 562 Deficient reserve penalties (including interest) 41,783 141,664 69,150 102,804 216,559 102,846 174,470 104,164 92,744 238,425 158,569 130,157 S 1, 573, 335 Sundry profits 32,985 245,775 42,931 18,249 11,270 26,801 43,586 28,560 29,281 14,322 6,286 15, 797 | 515, 843 O Total earnings. 12,273,253 60,525,321 11,848,551 14,458,619 6,903,270 7,476,431 30,303,218 7,180,117 5,307,381 7,409,987 4,904,522 12, 706, 668 j 181, 297, 338 CURRENT EXPENSES. Expenses of operation: Assessments, account expenses of Federal Reserve Board $52, 584 $221, 868 $56, 804 $63, 246 $34, 555 $27, 882 $101, 568 $26,618 $22,520 $34,221 $21,695 $45,964 $709,525 Federal advisory council (fees and traveling expenses) 408 1,200 378 1,047 546 1,092 1,046 1,200 893 330 400 1,417 9,957 Governors' conferences (including traveling expenses).. 315 270 272 237 401 504 474 277 452 626 651 1,272 5,751 Federal agents' conferences (including traveling expen- Sa s l e a s r ) ies- 400 64 100 125 175 559 282 27 121 64 1,683 3,688 W Bank officers 116, 600 383, 760 123, 338 143,171 105, 945 156,996 216, 541 126, 916 77,637 116, 274 117, 768 188,017 1, 872, 963 IO Clerical staff 781, 904 3, 479, 270 799, 385 872,339 617, 525 433,196 1,672, 550 747,312 363, 724 794, 286 649,100 1, 018, 812 12, 229, 403 Special officers and watchmen 20, 988 166,449 70, 921 35,149 15, 066 15, 631 94, 494 22, 984 10, 766 25, 275 20,177 33,150 531,050 Allother 7,207 199,213 80,412 112, 492 34, 749 24, 502 123, 324 30, 693 23, 686 35,694 39, 456 38,691 750,119 Life insurance premiums (employees group insurance) 480 19, 296 7,391 6,267 4,008 2, 576 • 7,712 3,661 8,043 6,395 82,602 Directors fees, per diem allowance, and traveling expenses. 9,529 32,175 6,702 6,318 17, 427 I 9,591 11, 849 6,705 19, 532 6,530 11,099 144,026 Officers and clerks traveling expenses 9,046 23, 743 9,885 15, 046 26, 248 I 15, 495 [ 39,667 25, 525 15, 227 28, 085 30, 851 32,193 271, 011 Legal fees 3,723 9,324 2,530 2,000 1, 070 I 8,068 I 7,500 1,505 3,100 2,543 2,622 4,545 48, 530 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Rent 63, 844 301, 797 18, 020 78, 717 10,139 19, 433 145, 751 48, 746 21, 760 41, 326 14, 904 21,163 785, 600 Taxes and fire insurance 1, ISO 3,328 20,063 3,183 9,699 10, 774 4,535 3,220 1,186 4,217 3,476 8,222 73,083 Telephone 12, 292 32, 934 15, 492 8,503 3,415 3,589 19, 283 6,629 2,832 5,627 3,938 10, 415 124, 949 Telegraph 10, 314 49, 045 10, 565 27,153 27, 604 50, 746 63, 875 44, 800 13, 780 37, 310 56,900 70, 615 462, 707 Postage 66. 915 114, 779 56,721 76,212 63, 415 57, 541 117, 389 80, 219 69,406 115, 506 65, 507 67, 341 950, 951 Expressage 951 3,956 437 1,521 948 1,466 8,381 1,319 11, 938 2,144 36,365 7,653 77, 079 Insurance and premiums on fidelity bonds 23,007 26, 283 37,213 31, 710 11, 724 13, 744 37, 898 20,123 18, 592 21,164 24,672 26, 408 292, 538 Light, heat and power 14,443 3,077 22, 651 5,376 7,460 6,095 18,199 7,139 5,720 6,896 9,246 106, 302 Printing and stationery 63,667 270, 383 113,644 120,652 84, 345 80, 240 219, 420 76,743 62, 488 94, 787 67, 998 178, 489 1,432, 856 Repairs and alterations 55,623 26, 988 38,149 12,395 9,340 136,292 38,159 22, 523 18,147 13, 797 70,296 441,997 Currency shipments to and from member and nonmember banks and between Federal Reserve Banks and their branches 93,127 111, 522 81, 370 48, 710 28,432 42,609 87,623 27,143 11,392 32, 447 37,921 633,159 Currency shipments (other than Federal Reserve and Federal Reserve Bank notes) to and from Washington or a subtreasury 26, 898 87,956 20,982 27, 418 14, 674 13,478 27,144 30, 540 9,420 24, 979 12,123 17,190 312, 802 5 All other 65,609 184, 865 38,072 23,688 34, 010 100, 685 32, 390 25, 288 45, 712 78, 080 81, 963 778,253 5 Federa T l o R ta e l s e e x rv p e e n c s u e r s re o n f c y op ( e o r r a ig ti i o n n a . l 1, 445, 719 5,782,204 1,620,167 1, 792, 991 1,144,494 1, 046,609 3, 261, 501 1, 419, 315 799, 003 1, 514,116 1, 311,228 1,993,554 23,130,901 Q cost including shipping charges) 345,151 648, 392 292, 540 334,679 170,101 126,009 550, 291 238, 051 62,627 97, 477 86, 514 219, 398 3,171, 230 Miscellaneous charges account note issues 112,162 159,767 77,508 63, 519 45,749 72, 808 102,672 32, 988 15, 959 33, 905 22,825 40,600 780,462 Taxes on Federal Reserve Bank note circulation 82, 000 207, 401 110, 904 93, 322 52,605 63, 958 174, 252 58,000 36, 792 83, 422 46,397 46,283 1, 055, 336 B Fu an rn k i t p u r r e e m a i n se d s equipment 2 24 8 , , 6 5 7 8 3 5 201, 491 75,06 9 5 0 1 4 41 5 , , 1 0 6 0 6 8 103,126 76, 057 28 7 9 5, , 4 0 6 6 0 4 176,102 100, 817 12 2 6, , 3 7 3 0 3 7 82, 883 202, 751 1, 1 5 5 9 1 9 , , 7 6 2 5 2 6 Total current expenses 2, 038, 290 6, 999, 255 2,176,274 2, 470, 685 1, 516, 075 1, 385, 441 4, 453, 240 1, 924, 456 1, 015,198 1, 857, 960 1, 549, 847 2, 502, 586 29,889,307 Current net earnings 10,234, 963 53, 526, 066 9,072,277 11, 987,934 5, 387,195 6, 090, 990 25, 849,978 5,255,661 4,292,183 5, 552, 027 3,354,675 110,204,082 151,408,031 xn a Debit. to to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 64.—Earnings and expenses of each Federal Reserve Bank during 1920—Continued. to to PROFIT AND LOSS ACCOUNT. fcO 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. St. Louis. M ap i o n l n is e . - K C a i n t s y a . s Dallas. Sa c n is F co ra . n- Total. Earnings $12,273,253 $60,525,321 $11,848,551 $14,458,619 $6,903,270 $7,476,431 $30,303,218 $7,180,117 $5,307,381 $7^409,987$4,904,522 $12,706,668 $181,297,338 Current expenses 2,038,290 6,999,255 2,176,274 2,470,685 1,516,075 1,385,441 4,453,240 1,924,456 1,015,198 1,857,960 1,549,847 2,502,586 29,889,307 Current net earnings 10,234,963 53,526,066 9,672,277 11,987,934 5,387,195 6,090,990 25,849,978 5,255,661 4,292,183 5,552,027 3,354,675 10,204,082 151,408,031 Additions to current net earnings on account of: Amount previously deducted from current net earnings tor- Assessment account ex- 2 penses Federal Reserve Board 38,666 168,682 41,828 63,246 25,531 20,302 66,764 19,520 16,607 16,167 45,964 523,277 Special reserve 200,000 200,000 All other 29,248 6,050 104,366 522 5,859 17 2, 543 1,040 43 417 150,105 Total additions 67,914 374, 732 146,194 63,768 31,390 20,319 69,307 19,520 16,607 1,040 16,210 46,381 873,382 Deductions from current net earnings on account of: Bank premises 285,677 646,620 129,551 170,000 87,267 29,062 365,000 77,737 123,570 1,914,484 Assessment account expenses Federal Reserve Board 53,900 12,658 66,558 Reserve for depreciation, United States bonds 28,162 25,299 105,396 48,220 5,865 9,506 9,984 34,615 11,579 278,626 Special reserves .. - 37 456,165 100,000 130 963 687,165 Allother 2,114 5,527 1,339 4,214 4,212 4,490 807 11,691 5,412 39,806 Total deductions 30,313 772,668 753,355 231,671 180,079 100, 985 43, 536 399,615 177,737 12,386 142,654 141,640 2,986,639 Net deductions from current net earnings.« i 37,601 397,936 607,161 167,903 148,689 80,666 i 25,771 380,095 161,130 11,346 126,444 95,259 2,113,257 Net earnings available for dividends, surplus and franchise tax, Dec. 31,1920 10,272,564 53,128,130 9,065,116 11,820,031 5,238,506 6,010,324 25,875,749 4,875,566 4,131,0-53 .%540,681 3,228,231 10,108,823 149,294,774 Dividends paid 447,266 1,477,096 496,679 604,194 293,052 225,571 792,769 253,711 195,871 257,672 225,424 384,713 5,654,018 Transferred to surplus fund 7,351,799 212,332,523 8,204, 775 11,215,837 4,740,869 3,648,465 14,688,500 4,621,855 3,410,948 3,042,781 3,002,807 6,654,855 82,916,014 Franchise tax paid United States Government 2,473,499 39,318,511 363,662 204,585 2,136,2S8 10,391, 480 524,234 2,240,228 3 069,255 60,724,742 1 Net additions. 2 Includes $1,000,000 deducted from super-surplus account and credited to general reserve account after closing of books Dec. 31,1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FISCAL AGENCY DEPARTMENT EXPENSES. No. 65.—Expenses of fiscal agency department, amounts reimbursed by Treasury Department, and balances reimbursable at end of 1920. Boston. New York. 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. St. Louis. M ap i o n l n i e s. - K C a i n ty sa . s Dallas. Sa c n i s F co ra . n- Total. Total expenses during 1920 $447, 243 $1, 516,455 $374,163 $465,662 $345, 541 $233,985 $1,005,377 $318, 396 $251, 719 $472, 737 $239,029 $545,049 $6,215,356 Amounts 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 Total 633,020 2, 494, 290 491,980 796,048 598, 364 355, 772 1,537, 858 424, 853 381, 004 879, 913 452,623 756, 798 9, 802, 523 Reimbursements received during 1920 546,031 2, 269,643 454,125 714,028 574,476 315, 852 1,453,615 354,436 326,697 767, 880 428, 965 657,466 8, 863, 214 Balance reimbursable Jan. 1, 1921 86,989 224,647 - 37,855 82,020 23, 888 39,920 84,243 70, 417 54,307 112,033 23,658 99,332 939,309 a o fcO to CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECEIPTS AND DISBURSEMENTS OF THE FEDERAL RESERVE BOARD FOR THE YEAR 1920. g Balance, January 1, 1920: Available for general expenses of the Board $39, 930.02 Available for expenses chargeable to the Federal Reserve Banks 779.14 Total $40, 709.16 RECEIPTS. ^ Available for general expenses of the Board: 5 Assessments on Federal Reserve Banks for estimated general expenses of the Board $700, 766. 52 S Refunds of expenditures during 1919 19,413.40 F Subscriptions to Federal Reserve Bulletin 5,461.03 ^ Refund by Treasury Department of salaries of money counters 76,117.04 t3 Miscellaneous receipts and reimbursements 2,716.50 § Total receipts available for general expenses of the Board 804,474.49 ^ Available for expenses chargeable to Federal Reserve Banks: *4 Assessments on Federal Reserve Banks— ^ For cost of preparing Federal Reserve notes, including cost of additional equipment 2,782,156.54 & For expenses of gold shipments between Treasury offices and Federal Reserve Banks under j# the provisions of section 16 of the Federal Reserve Act 254,050.00 £1 For expenses of leased wire system 84,939.50 w For miscellaneous expenses 9,603.98 H w Total receipts available for expenses chargeable to Federal Reserve Banks 3,130,750.02 # Total receipts 3,935,224.51 W — W Total available for disbursements 3, 975,933. 67 ^ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISBURSEMENTS. For general expenses of the Board: Expenses for 1919, paid in 1920 ,. $26, 327. 73 Expenses for 1920 (per detailed statement) $712, 043. 63 Less accounts unpaid December 31, 1920 36,520.44 675,523.19 Salaries of money counters reimbursable by Treasury Deparment 84, 574. 46 Miscellaneous expenses reimbursable 1, 999. 60 Total disbursements for general expenses of the Board 788,424.98 For expenses chargeable to Federal Reserve Banks: Cost of preparing Federal Reserve notes, including cost of additional equipment 971,155. 56 Expenses of gold shipments between Treasury offices and Federal Reserve Banks under the _ provisions of section 16 of the Federal Reserve Act 192,800.00 t3 Expense of leased wire system 84,947.16 g Miscellaneous expenses 10,274.26 |] p> Total disbursements for expenses chargeable to Federal Reserve Banks 1, 259,176.98 ^ w Total disbursements 2, u^v, oul. 96 ™ . fej Balance, December 31, 1920: 2 Available for accounts unpaid, December 31, 1920 36, 520.44 S Available for general expenses of the Board 19,459.0£ w Available for expenses chargeable to Federal Reserve Banks unpaid, December 31, 1920 1,872, 352. IS p Total 1,928,331.71 § to to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Detailed statement of expenses. January. February. 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 . - Total. PERSONAL SERVICES. Board members and their staff $7,523.73 $7,280.41 $6,698.78 $6,144.83 $6,207.07 $6,942.18 $7,022.06 $6,332.06 $6,066.29 $7,092.98 $6,905.82 $6,905.86 $81,122.07 Office of secretary 5,091.62 5,166.11 5,296.16 5,604.95 5,555.00 5,697.71 5,832.20 5,668.41 5,853.14 3,886. 25 1,358.33 1,333.34 56,343.22 Office of assistant to governor. 736.44 1,477.92 1,277.93 3,492.29 Office of general counsel 2,744.98 2,328.33 2,745.02 2,744.98 2,745.00 2,745.02 2,272.49 2,272.50 2,272.51 2,452.49 2,680.83 2,680. 85 30,685.00 Office of statistician 1,769.99 1,770. 00 1,770.01 1,769.99 1,770.00 1,770.01 1,825. 82 1,825.84 1,825. 84 1,835. 82 1,900. 84 1,965. 84 21,800.00 Office of fiscal agent 470.00 470.00 470.00 470.00 470.00 470.00 470.00 470.00 470.00 478.33 478. 33 478.34 5,665.00 Division of examination 6,653.32 6,881.66 6,973.35 6,973.32 6,973.33 6,973.35 7,243.30 7,296. 66 7,067.12 6,524.55 6,524.58 6,366.29 82,450.83 Division of reports and statistics 4,378.32 4,461.67 4,571.69 4,639.14 4,634.67 4,751.69 5,045.78 5,107.50 5,251.22 5,131.62 5,362.65 5,594. 84 58,930.79 Division of chief clerk 1,029.14 1,967.34 2,006.69 5,003.17 Division of gold settlement... 952.48 816.94 1,040.93 1,042.41 1,036.41 1,027.51 1,137.16 1,159.91 1,161.93 1,112.69 1,127.84 1,216.85 12,833.06 Division of supply agent 212.50 425.00 425.00 1,062.50 Division of currency 241.45 482.92 557.92 1,282.29 Division of printing 196.03 392.08 392.09 980.20 Division of analysis and research 2,574.97 2,725.70 2,790.40 2,742.88 2,815.05 2,841.69 3,349.15 3,132.68 3,291.69 3,459.65 3,496.92 3,637.52 36,858.30 Division of architecture 888.88 888.89 888.89 888.89 888.88 888.90 888.88 888.89 888.89 888.89 888. 88 888.90 10,666.66 Division of issue and redemption.. 6,132.50 6,132.50 5,930.84 5,859.16 5,819.67 5,612.51 5,973.89 5,931.72 6,111.67 6,074.79 6,060.71 5,983.06 71,623.02 Messengers 858.32 905.01 941.67 948.32 948.34 903.34 921.28 896.96 993.36 993.28 1,000.03 1,000.03 11,309.94 Charwomen 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 92.80 96.00 1,148.80 Total 40,135.11 39,923.22 40,213.74 39,924.87 39,959.42 40,719.91 42,078.01 41,079.13 41,349.66 42,442.90 42,623.82 42.807.35 493,257.14 Railway loan advisory committee to the Federal Reserve Board 296.83 511.67 511.67 631.22 . 668.97 650.00 650.00 650.00 695.56 5,265.92 Total personal services.. 40,135.11 39,923.22 40,213.74 40,221.70 40,471.09 41,231.58 42,709.23 41,748.10 41,999.66 43,092.90 43,273.82 43,502.91 498,523.06 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NONPERSONAL SERVICES. Transportation and subsistence: Board members and their staff 90.03 248.94 48.83 100.65 70.93 22.40 57.30 145.07 204.17 382.22 481.13 i 620.21 2,471.88 Office of secretary 77.78 120.38 68.26 121.90 91.26 22.45 502.03 Office of assistant to governor 68.50 68.50 Office of general counsel.. 33.06 116.66 149.72 Division of examination.. 2,542.16 3,631.32 2,577.94 2,934.61 5,779.11 4,210.34 3,201.43 1,433.04 3,495.46 2,725.96 2,668.66 38,130.89 Division of analysis and research 77.25 35.34 33.54 138.92 58.02 229.20 23.03 11.89 56.17 44.55 205.03 912.94 Division of architecture... 24.71 22.58 22.35 24.22 48.55 53.06 43.96 293.45 177.65 710.53 Total all other divisions, including local car fare.. 12.50 12.50 137.50 176.56 15.00 15.00 129.01 45.16 37.50 96.86 677.59 Communication service: Telephone 246.59 240.37 257.49 235.16 223.72 221.52 256.89 251.73 313.66 267.37 314.04 310.56 3,139.10 Telegraph 413.69 263.12 574.46 896.40 424.99 429.91 474.00 474! 38 407.09 453.51 435.56 500.50 5,747.61 26.50 25.50 28.00 22.50 25.00 27.00 27.50 22.00 68.00 45.26 317.26 Printing, binding, etc 5,186.69 3,387.00 3,157.63 3,283.62 3,688.89 2,540.86 3,500.92 6,798.92 3,359.28 2,052.71 5,402.51 4,506.90 46,865.93 Repairs 24.64 30.03 59.60 59.68 33.65 28.59 29.18 94.74 10.45 18.05 74.15 9.10 471.86 Electricity (light and power)., 35.20 35.20 35.20 35.20 35.20 35.20 35.20 35.20 35.20 35.20 35.20 35.20 422.40 Steam (heat) 32.80 32.80 32.80 32. 80 16.40 32.80 32.80 32.80 246.00 Miscellaneous unclassified 48.57 126.92 68.74 156.39 236.40 149.60 134.30 131.38 62.32 497.84 140.65 37.00 1,790.11 Equipment rental 186.80 186.80 189.80 186.80 186.80 189.80 186.80 186.80 189.80 231.80 291.80 199.80 2,413.60 Supplies: Stationery and office , 1,740.83 626.77 804.79 611.02 597.75 1,412.07 685.66 1,213*12 2,050.49 896.13 692.81 11,601.10 Periodicals 78.68 82.85 63.11 85.05 403.18 212.50 30.05 5.00 72.71 17.50 30.65 1,081.28 Equipment: Furniture and office , $558.32 $1,130.86 $525.11 $472.05 $207.26 $560.47 $310.25 $144.76 $520.24 $1,271.04 $696.10 $6,486.45 Books 33.29 198.05 94.30 106.57 59.00 262.26 570.00 19.25 16.00 43.95 39.00 210.02 1,651.69 Rent 814.56 807.14 939.56 939.56 1,014.56 1,014.56 1,014.56 1,019.56 1,024.56 1,024.56 1,024.56 2,024.36 12,662.10 Vault construction tests 5,904.07 14,792.00 23,630.80 16,791.17 874.70 13,007.26 75,000.00 Total 12,239.09 11,277.53 9,710.67 10,436.20 19,309.44 26,495.60 33,742.25 "287274792 10,937.22 10,783.64 14,384.93 25,929.08 213,520.57 Grand total 52,374.20 51,200.75 49,924.41 50,657.90 59,780.53 67,727.18 76,451.4 "70^023702 52,936.88 53,876.54 57,658.75 69,431.99 712,043. 63 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

228 ANNUAL REPORT FEDERAL RESERVE BOARD. STATE BANKS AND TRUST COMPANIES ADMITTED, The following is a list of State banks and trust companies members of the Federal Reserve System on December 31, 1920, showing the capital, surplus, and total resources as compiled from the latest available figures. One thousand four hundred and eighty-seven State institutions are now members of the system, having a total capital of $535,177,019 total surplus of $516,522,394, and total resources of $10,338,692,127.' Capital.1 Surplus.1 res T ou o r t c a e l s.1 DISTRICT NO. 1. CONNECTICUT. (See also District No. 2.) New Britain—New Britain Trust Co $400,000 $200,000 $4,543,655 New Haven—Union & New Haven Trust Co 650,000 650,000 5,503,151 South Manchester—Manchester Trust Co 200,000 100,000 2,102,387 Waterbury—Colonial Trust Co 400,000 500,000 7,603,021 MAINE. Portland—Fidelity Trust Co 400,000 400,000 15,433,578 Bangor—Merrill Trust Co 400,000 400,000 8,598,877 Sanford—Sanford Trust Co 100,000 25,000 1,196,439 MASSACHUSETTS. Arlington—Menotomy Trust Co 200,000 62,500 2,727,372 Boston- American Trust Co 1,500,000 2,000,000 28,490,445 Beacon Trust Co 600,000 1,400,000 22,378,733 Commonwealth Trust Co 1,500,000 1,000,000 31,957,972 Exchange Trust Co 1,000,000 1,000,000 18,375,927 International Trust Co 2,000,000 2,000,000 32,315,018 Liberty Trust Co 500,000 500,000 8,056,568 Market Trust Co 400,000 100,000 4,599,290 Massachusetts Trust Co 1,000,000 500,000 16,712,551 Metropolitan Trust Co 500,000 400,000 9,225,364 New England Trust Co 1,000,000 2,000,000 30,064,314 Old Colony Trust Co. 7,000,000 9,000,000 159,901,831 State Street Trust Co 2,000,000 2,500,000 42,384,814 United States Trust Co 1,000,000 1,000,000 19,861,065 Cambridge- Charles River Trust Co 200,000 200,000 4,557,315 Harvard Trust Co 200,000 200,000 5,783,744 Fitchburg—Fitchburg Bank & Trust Co 500,000 400,000 5,880,093 Gloucester—Gloucester Safe Deposit & Trust Co 200,000 201,400 4,933,897 Greenfield—Franklin County Trust Co 200,000 100,000 3,161,411 Holyoke—Hadley Falls Trust Co 500,000 250,000 5,913, 865 Lawrence—Merchants Trust Co 300,000 150,000 7,798,085 Lynn—Security Trust Co 200,000 200,000 7,670,759 New Bedford—The New Bedford Safe Deposit & Trust Co 300,000 400,000 5,565, 835 Newton—Newton Trust Co 551,900 551,900 8,437,853 Norwood—Norwood Trust Co 200,000 12,000 3,175,263 Salem—Naumkeag Trust Co 250,000 150,000 5,855,346 Waltham—Waltham Trust Co. 300,000 200,000 5,625,483 Winchester—Winchester Trust Co 100,000 25,000 1,163,452 Worcester—Worcester Bank & Trust Co 1,500,000 1,000,000 31,572, 867 RHODE ISLAND. Providence- Industrial Trust Co 3,000,000 4,000,000 85,629,756 Rhode Island Hospital Trust Co 3,000,000 4,000,000 70,454,573 Union Trust Co 1,000,000 500, 000 15,788,646 Total 35,251, 900 38,277,800 751,000,615 1 Amounts shown represent capital, surplus, and total resources as of Nov. 15, 1920, except in the case of banks admitted since that date, for which ngnres as of the date of admission were used. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBEESHIP. 229 Total Surplus. resources. DISTRICT NO. 2. CONNECTICUT. (See also District No. 1.) Bridgeport—Bridgeport Trust Co SI, 000,000 $300,000 $10,573,685 NEW JERSEY. (See also District No. 3.) Asbury Park—Seacoast Trust Co 100, 000 75,000 2,938,878 Bayonne—Bayonne Trust Co 200,000 150,000 5, 782,160 Bloomfield—Bloomfield Trust Co 200, 000 100, 000 3, 873, 824 Bogota—Bank of Bogota 50,000 10, 000 470,167 Boonton—Farmers & Merchants Bank 75,000 25, 000 942, 751 Cranford—Cranford Trust Co 100, 000 20,000 1, 907, 311 East Orange- East Orange Bank 150, 000 30,000 2, 304, 226 Savings Investment <fe Trust Co 500,000 300,000 9, 586, 305 Elizabeth— Elizabethport Banking Co 250,000 100,000 5, 088, 960 Franklin—Sussex County Trust Co 100,000 20,000 719, 033 Glen Ridge—Glen Ridge Trust Co 100,000 20, 000 1,252, 915 Hackensack—Peoples Trust & Guaranty Co 500,000 300, 000 7,503, 014 Hasbrouck Heights—Bank of Hasbrouck Heights.. 50,000 10, 000 283, 459 Hoboken—Jefferson Trust Co 346, 075 50,000 5,342, 505 Jersey City- Commercial Trust Co. of New Jersey 1,000,000 1, 500,000 37, 718,054 The New Jersey Title Guarantee & Trust Co.. 1,000,000 1, 000,000 18,133,668 Montclair— Bank of Montclair 100,000 80, 000 Montclair Trust Co 300,000 100, 000 4, 997, 854 Morristown—Morristown Trust Co 600,000 300,000 9, 229, 449 Newark- City Trust Co 200,000 100,000 3,183, 342 Federal Trust Co 1,000,000 500,000 14, 828, 225 Fidelity Trust Co , 3, 000, 000 630, 634 31,818, 766 Ironbound Trust Co 200, 000 100,000 11,344, 605 Nutley—Bank of Nutley 100,000 35,000 1, 670, 064 Orange—Trust Co. of Orange 100, 000 25,000 1,289, 545 Passaic— The Passaic Trust & Safe Deposit Co 400,000 200,000 10,695,132 Peoples Bank & Trust Co 400, 000 400,000 "7, 542,676 Paterson—The Hamilton Trust Co 500,000 500,000 8, 860, 654 Plainfield—The Plainfield Trust Co 300, 000 400, 000 9, 528, 231 Rahway—Rahway Trust Co 100, 000 25, 000 1, 065, 260 Ridgefield Park—Ridgefield Park Trust Co 100,000 25, 000 1, 771,190 Ridgewood—Ridgewood Trust Co 150, 000 40,000 2, 426, 239 Rutherford—Rutherford Trust Co 100,000 50,000 1, 581, 797 Westfield— Peoples Bank & Trust Co 100, 000 80,000 2, 331,150 Westfield Trust Co 100,000 100,000 2, 813, 321 West Hoboken—Hudson Trust Co 1,000,000 1,000,000 27,166,466 NEW YORK. Adams—Citizens Trust Co 150,000 75,000 1,673,384 Albion—The Orleans County Trust Co 100,000 50,000 867, 359 Amityville—Bank of Amityville 25, 000 50, 000 706, 808 Amsterdam—Montgomery County Trust Co... 200, 000 100, 000 3, 472,127 Batavia—The Bank of Genesee 100,000 125, 000 1,654, 444 Belmont—State Bank of Belmont 50,000 50,000 555, 302 Binghamton—Peoples Trust Co 500, 000 100,000 6,107, 579 Blasdell—Bank of Blasdell 30,000 10,500 173,661 Brooklyn- Brooklyn Trust Co 1, 500,000 2, 741, 478 49,382, 737 Manufacturers Trust Co 2, 000, 000 1, 500,000 38,462, 839 Mechanics Bank 1,600, 000 800,000 41, 758, 319 North Side Bank of Brooklyn 200, 000 150, 000 8, 467, 986 Peoples Trust Co 1, 500, 000 1,500,000 40,650, 526 Buffalo- Buffalo Trust Co 500, 000 500, 000 17, 374,017 Citizens Commercial Trust Co 1,250, 000 1, 250,000 29,145, 662 Fidelity Trust Co 1, 000,000 1, 000, 000 20, 994, 990 Liberty Bank of Buffalo 1, 500, 000 1, 000, 000 39, 706, 495 Marine Trust Co 10,000, 000 7,000, 000 135, 813, 891 Peoples Bank of Buffalo 1,000, 000 603, 000 19,424, 660 Canisteo—First State Bank 50,000 26, 000 701, 800 Cape Vincent—Citizens Bank of Cape Vincent. 50,000 10, 000 326, 718 Chatham—State Bank of Chatham 50,000 50,000 1, 789, 365 Coney Island—Bank of Coney Island 200,000 100,000 4, 241,171 Dunkirk—Dunkirk Trust Co 250,000 125,000 1,029,043 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

230 ANNUAL REPORT FEDERAL RESERVE BOARD. Capital. Surplus. Total resources. DISTRICT NO. 2—Continued. NEW YORK—continued. East Aurora- Bank of East Aurora $100,000 $25,000 $1,805, 528 Erie County Trust Co... 100, 000 37, 500 1, 544, 059 Elmira—Cherniing Canal Trust Co 600,000 400, 000 10,193, 608 Endicott—State Bank of Endicott 50,000 10,000 1,721,428 Floral Park—Floral Park Bank 50,000 50, 000 1,349,161 Geneva—Geneva Trust Co 250,000 225, 000 4,193,808 Gloversville—Trust Company of Fulton County 250, 000 150, 000 1, 312, 395 Hamburg—The Peoples Bank of Hamburg 30,000 30,000 1,655, 245 Hammondsport—The Bank of Hammondsport 50,000 50,000 1,469, 939 Hicksville—Bank of Hicksville 25,000 100,000 1, 706, 776 Ithaca—Ithaca Trust Co 200,000 100,000 3,638,156 Johnson City—Workers Trust Co 100,000 50,000 4,034,017 Katonah—Northern Westchester Bank 50,000 25,000 '520,682 Kingston—Kingston Trust Co 250,000 75,000 2,016,309 Lacka wanna—The American Bank of Lacka wanna 100,000 25,000 781,079 Little Falls—Herkimer County Trust Co 350,000 350,000 5,690,389 Lowville—Lewis County Trust Co 100,000 50,000 1,064,607 Malone—Peoples Trust Co 300,000 100,000 3,161,067 Millbrook—Bank of Millbrook 50,000 50,000 833,002 Mineola—Nassau County Trust Co 100,000 75,000 2,623,841 New York- Bank of America 5,500,000 5,500,000 105,414,450 Bankers Trust Co 20,000,000 11,250,000 388,034,406 Bank of United States 1,500,000 300,000 35,695,043 Central Union Trust Co 12,500,000 15,000,000 256,265,566 Columbia Bank 2,000,000 1,000,000 32,954,918 Columbia Trust Co 5,000,000 6,000,000 110,412,837 Commercial Exchange Bank 200,000 700,000 10,918,634 The Commonwealth Bank of the City of New York. 400,000 600,000 11,931,691 The Continental Bank 1,000,000 500,000 18,722,752 Corn Exchange Bank.. 6,000,000 7,500,000 215,665,049 Equitable Trust Co... 12,000,000 14,500,000 271,634,635 Farmers Loan & Trust Co 5,000,000 10,000,000 157,217,958 Fidelity International Trust Co 1,500,000 1,250,000 25,211,452 Fifth Avenue Bank 500,000 2,000,000 27,317,366 Fulton Trust Co 500,000 250,000 11,157,871 Guaranty Trust Co 25,000,000 25,000,000 667,377,908 Industrial Bank of New York 1,000,000 500,000 7,604,269 Lincoln Trust Co 2,000,000 850,000 35,644,993 Manhattan Co 5,000,000 12,500,000 253,035,636 Mercantile Trust Co 1,000,000 500,000 20,950,664 Metropolitan Bank 2,000,000 2,000,000 57,845,125 Metroplitan Trust Co. of the City of New York 2,000,000 3,000,000 38,627,827 Mutual Bank 200,000 500,000 14,533,718 New Netherland Bank 600,000 600,000 10,904,022 New York Trust Co 3,000,000 10,000,000 98,468,319 Pacific Bank 1,000,000 1,500,000 34,851,234 United States Mortgage & Trust Co 2,000,000 4,000,000 84,103,653 United States Trust Co 2,000,000 12,000,000 64,966,808 W. R. Grace & Co's. Bank 500,000 800,000 6,841,122 Yorkville Bank 200,000 500,000 17,270,047 Niagara Falls—Power City Bank 500,000 412,500 10,266,682 Nyack—Rockland County Trust Co 100,000 25,000 2,539,401 Ogdensburg—St. Lawrence Trust Co 100,000 25,000 1,186,771 Olean—Olean Trust Co 100,000 20,000 1,461,939 Oneida—Madison County Trust & Deposit Co 200,000 120,000 3,676,532 Orchard Park—Bank of Orchard Park 30,000 6,000 669,991 Perry—Citizens Bank 50,000 40,000 1,263,058 Port Chester—Mutual Trust Co. of Westchester County 300,000 75,000 3,277,130 Rochester—Lincoln-Alliance Bank 1,000,000 500,000 19,871,971 Rome—Rome Trust Co 300,000 60,000 4,045,512 Sehenectady—Schenectady Trust Co 300,000 62,500 9,619,281 Shortsville—State Bank of Shortsville 30,000 6,000 370,594 Stony Brook—Bank of Suffolk County 25,000 15,000 447,109 Syracuse— City Bank Trust Co 1,970,800 973,477 22,772,531 First Trust and Deposit Co 2,500,000 1,000,000 40,718,916 Syracuse Trust Co.', 1,500,000 750,000 28,018,008 Utica— Citizens Trust Co. of Utica 500,000 500,000 16,399,700 Oneida County Trust Co 250,000 250,000 3,457,705 Utica Trust & Deposit Co 800,000 500,000 13,648,734 Warsaw—Trust Co. of Wyoming County 100,000 20,000 835,528 Watertown—Northern New York Trust Co 400,000 400,000 8,734,864 Westbury—Bank of Westbury 25,000 5,000 605,915 White Plains—County Trust Co 150,000 50,000 4,962,227 Total 173,811,875 186,006,589 4,078,077,234 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

231 STATE BANK MEMBERSHIP. Capital. Surplus. Total DISTRICT NO. 3. DELAWARE. Milford—Milford Trust Co $50,000 $87,500 $1,249,576 Wilmington- Equitable Trust Co 500,000 500,000 5,391,279 Security Trust & Safe Deposit Co 600,000 700,000 7,066,302 Wilmington Trust Co 1,000,000 500,000 16,411,167 NEW JERSEY. (See also District No. 2.) Atlantic City- Bankers Trust Co 100,000 729,960 Equitable Trust Co. 200,000 150,000 3,021,069 Burlington—Burlington City Loan & Trust Co 100,000 100,000 1 883,559 Camden—Camden Sale Deposit & Trust Co 500,000 800,000 12,490,487 Gloucester—Gloucester City Trust Co 100,000 45,000 1,247,710 Princeton—Princeton Bank & Trust Co 100,000 150,000 2,460,164 Riverside—Eiverside Trust Co 100,000 100,000 1, 855,906 Swedesboro—Swedesboro Trust Co 100,000 20,000 886,201 PE NNS YL VANIA. (See also District No. 4.) Allentown—Penn Trust Co 300,000 100,000 2,613,228 Chester—Cambridge Trust Co 250,000 250,000 6,300,643 Du Bois—The Union Banking & Trust Co 250,000 426,200 2,961,903 Harris burg—Dauphin Deposit Trust Co 300,000 300,000 4,541,002 Hazleton— Markle Banking & Trust Co 100,000 600,000 5,374,604 Peoples Savings & Trust Co 125,000 100,000 2,952,191 Honesdale—Wayne County Savings Bank 200,000 325,000 4,292, 882 Huntington—Grange Trust Co 125,000 17,500 806,623 Lewistown—Lewistown Trust Co 125,000 25,000 836,033 Lykens—Miners Deposit Bank 50,000 110,000 897,637 Mill Hall—The Mill Hall State Bank 35,000 15,000 453,322 New Oxford—Farmers' & Merchants' Bank 50,000 50,000 723,475 Philadelphia— Colonial Trust Co 500,000 500,000 7,157,600 Commercial Trust Co 2,000,000 2,750,000 33,855,910 Federal Trust Co 200,000 100,000 4,092,513 Fidelity Trust Co \ 5,200,000 16,000,000 64,359,615 Girard Trust Co 2,500,000 7,500,000 62,360, 547 Oxford Bank of Frankford 250,000 55,000 2,240,294 Pennsylvania Co. for Insurance on Lives and Granting Annuities 2,000,000 5,000,000 44,760,688 Peoples Bank of Philadelphia 200,000 30,000 3,874,325 Philadelphia Trust Co 1,000, 000 4,000,000 26,318,577 Provident Life & Trust Co. of Philadelphia 2,000,000 5,000,000 120,419,200 Rittenhouse Trust Co 500,000 100,000 3,355,174 West Philadelphia Title & Trust Co 500,000 500,000 8,296,331 Reading- Berks County Trust Co 250,000 155,000 5,106,514 Northeastern Trust Co 250,000 25,000 867,161 Schuylkill Haven—The Schuylkill Haven Trust Co 125,000 55,000 1,474,701 Scranton—American Bank of Commerce 300,000 60,000 1,608,483 Shamokin—Dime Trust & Safe Deposit Co 125,000 125,000 1, 895,306 Tamaqua—The Peoples Trust Co : 125,000 40,000 1,055,342 Wilkes-Barre—Dime Bank Title & Trust Co 200,000 150,000 2,050,907 Williamsport— Northern Central Trust Co 500,000 250,000 4, 823,578 Susquehanna Trust & Safe Deposit Co 400,000 300,000 3,213,739 Williamstown—Williams Valley Bank 50, 000 49,000 533,212 Total. 24,535,000 48,215,200 391,166,640 DISTRICT NO. 4. KENTUCKY. (See also District No. 8.) Brooksville—Farmers Equity Bank 25,000 17,000 294,090 Georgetown—Farmers Bank & Trust Co.. 105,000 70,000 1,078,992 Independence—Bank of Independence 40,000 8,000 611,273 Lexington- Guaranty Bank & Trust Co 150, 000 50,000 2,092,217 Security Trust Co 500, 000 150,000 2,270, 524 Richmond—State Bank & Trust Co 150, 000 50,000 1,023,113 1 Exclusive of insurance assets of $104,960,131. 45525 °—21- -16 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

232 ANNUAL REPORT FEDERAL RESERVE BOARD. Surplus. Total resources. DISTRICT NO. 4—Continued. Adena—The Adena Commercial & Savings Bank... $60,000 $152,945 Akron- Central Savings & Trust Co 500,000 $500,000 14,178,323 Depositors Savings & Trust Co 300,000 300,000 8,091,069 Firestone Park Trust & Savings Bank 200, 000 75,000 3,794,009 The Peoples Savings & Trust Co 200,000 160,000 7,440,185 Alliance- Alliance Bank Co 150,000 150,000 3,902,580 City Savings Bank & Trust Co 100,000 100,000 3,070,010 Antwerp—Antwerp Exchange Bank Co 25,000 5,000 393,150 Apple Creek—Apple Creek Banking Co 25,000 15,000 286,304 Atwater—Atwater Savings Bank Co 25,000 10,000 365,524 Barberton—Peoples Savings & Banking Co 100,000 30,000 2,016,767 Bellaire—Dollar Savings Bank & Trust Co 125,000 50,000 1,632,698 Bowling Green—The State Bank of Bowling Green- 50,000 7,000 557,262 Bridgeport—Bridgeport Bank & Trust Co 75,000 40,000 840,906 Buckeye City—Commercial & Savings Bank Co.... 25,000 5,000 246,090 Canton—The Dime Savings Bank Co 500,000 175,000 5,809,552 Chagrin Falls—Chagrin Falls Banking Co 100,000 65,000 1,368,597 Cincinnati— Brighton Bank & Trust Co 215,000 215,000 9,504,464 Provident Savings Bank & Trust Co ., 400,000 1,000,000 18,828,471 Union Savings Bank & Trust Co ,000,000 2,500,000 24,376,846 Western Bank & Trust Co L, 000,000 500,000 15,416,494 Cleveland— The Union Trust Co $,333,333 16,666,666 284,769,818 Cleveland Trust Co 1,500,000 4,625,000 116,071,804 Guardian Savings & Trust Co L000,000 3,000,000 82,335,907 Pearl Street Savings <& Trust Co 600,000 400,000 15,957,912 United Banking & Savings Co L, 000,000 500,000 20,513,165 Columbiana—Union Banking Co 50,000 35,000 823,125 Columbus—Citizens Trust & Savings Bank 700,000 150,000 9,038,014 Conneaut—Conneaut Mutual Loan & Trust Co 100,000 70,000 2,153,715 Cuyahoga Falls— Citizens Bank 50,000 15,000 1,043,109 The Falls Banking & Trust Co 150,000 70,000 2,070,334 Dayton—Dayton Savings & Trust Co 600,000 533,540 17,574,099 Delphos—The Peoples Bank of Delphos 50,000 10,000 551,181 Eldorado—Farmers State Bank 35,000 5,000 441,254 Frazeysburg—Peoples Bank Co 25,000 41,000 658,103 Geneva—Geneva Savings Bank Co 100,000 81,000 1,381,327 Gibsonburg— Gibsonburg Banking Co 50,000 28,000 900,252 Home Banking Co 25,000 12,000 745,217 Hillsboro—Hillsboro Bank & Savings Co 50,000 20,000 535,838 Hubbard—Hubbard Banking Co 50,000 50,000 1,034,473 Lodi—Lodi State Bank. 40,000 60,000 886,727 McCutchenville—Farmers Bank 30,000 1,800 147,662 Mansfield—Farmers Savings & Trust Co 200,000 200,000 1,963,999 Massillon—Ohio Banking & Trust Co 150,000 50,000 2,324,295 Metamora—Farmers & Merchants Bank Co 25, 000 5,800 352,050 Middlefield—Middlefield. Banking Co 25,000 27,500 526,643 Middletown—American Trust & Savings Bank 100,000 20,000 2,603,603 Milan—The Farmers & Citizens Banking Co 25,000 12,500 537,891 Minerva—Minerva Savings & Trust Co 100,000 50,000 1,761,216 Minster—Minster State Bank 25,000 25,000 495,717 Napoleon—Napoleon State Bank 50,000 25,000 928,168 Newark—The Newark Trust Co 200,000 125,000 3,294,783 New Philadelphia- Merchants State Bank 100,000 50,000 989,454 Ohio Savings & Trust Co 100,000 50,000 2,025,680 Orrville—Orrville Savings Bank 50,000 50,000 987,092 Pandora—Farmers Bank Co 25,000 8,500 215,794 Pemberville— Pemberville Savings Bank Co 25,000 10,000 522,620 Peninsula—Peninsula Banking Co 25, 000 6,000 274,327 Portsmouth—Security Bank 150,000 300,000 2,735,805 Rittman—Rittman Savings Bank 60,000 15,000 535,437 Rossford—Rossford Savings Bank 50,000 10,000 555,312 St. Marys— The American State Bank 50,000 11,500 564,812 Home Banking Co... 100,000 24,000 1,085,426 Shadyside—Shadyside Bank., 35,000 5,000 388,508 Shelby—Citizens Bank 100,000 50,000 1,136,901 Shiloh—Shiloh Savings Bank Co 25,000 32,000 410,931 Spencer—Spencer State Bank 40,000 2,000 299,032 Steubenville— The Steubenville Bank & Trust Co ' 546,700 315,045 5,177,787 Union Savings Bank & Trust Co 350,000 350,000 4,357,364 Toledo— The Commercial Savings Bank & Trust Co.. 200,000 150,000 8,755,293 Commerce Guardian Trust & Savings Bank. 200,000 200,000 7,270,275 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 233 Total Capital. Surplus. resources. DISTRICT NO. 4—Continued. OHIO—continued. Upper Sandusky— Citizens Savings Bank $50,000 135,000 $795,024 The Lewis Bank & Trust Co 150,000 75,000 922, 480 Vennillion—Erie County Banking Co 50,000 11,000 676,862. Wakeman—Wakeman Bank Co 25,000 15,000 327,124 Warren—Union Savings & Trust Co 300,000 300,000 5,439,075. Wellington—First Wellington Bank 85,000 95,000 1, 454,201 West Lafayette—West Lafayette Bank Co 100,000 50,000 1,209,487 West Milton—Citizens State Bank Co 30,000 8,000 288, 738 Wooster—Commercial Banking & Trust Co... 150,000 35,000 1,075,639 Youngstown— City Trust & Savings Bank 300,000 300,000 6, 499,759 Doilar Savings & Trust Co 1,500,000 1,000,000 21,895,146, PENNSYLVANIA. (See also District No. 3.) Ambridge—Ambridge Savings & Trust Co 125,000 50,000 2,571,938: Beaver—Beaver Trust Co 300,000 100,000 1,650,720 Beaver Falls—Federal Title & Trust Co 200,000 40, 000 1,579, 459 Bellevue—Bellevue Realty, Savings & Trust Co 125, 000 50,000 1,412,088 Butler—Guaranty Trust Co. of Butler 500,000 600,000 4,871,101 Erie—Security Savings & Trust Co 200, 000 400,000 6,195, 792 Greensburg—Merchants Trust Co 188, 600 188, 600 2,201,077 Meadville—Crawford County Trust Co 125,000 25,000 1,999,027 New Castle—Lawrence Savings & Trust Co 300,000 300,000 4,742,09$ Pittsburgh- Allegheny Trust Co 700,000 600,000 5,874,175 City Deposit Bank 200,000 800,000 12,524,284 Colonial Trust Co 2,600,000 2,600,000 30,372, 446 Commonwealth Trust Co 1,500,000 1,000, 000 13,249,536-' Oakland Savings & Trust Co 200,000 200,000 5,266,556: Pittsburgh Trust Co 2,000, 000 1,000,000 21,672,419 Potter Title & Trust Co 500, 000 80,000 5,345,328- Union Trust Co 1,500, 000 35,500,000 144,678,271 Washington—Real Estate Trust Co 200,000 300,000 2,809, 783 Woodlawn—Woodlawn Trust Co 125,000 100,000 2,082,169- WEST VIRGINIA. (See also District No. 5.) Moundsville—Marshall County Bank 150,000 45,000 1,376,096 Wheeling— Security Trust Co 300,000 200,000 3,321,786 Wheeling Bank & Trust Co 300,000 300,000 5,295,063 Total , 49,893,633 81,203,451 1,064,026,453"' DISTRICT NO. 5. DISTRICT OF COLUMBIA. Washington—Continental Trust Co 1,000,000 100,000 5,236, Q9& MARYLAND. Baltimore— Baltimore Commercial Bank 750,000 150,000 7,511,949 Baltimore Trust Co 1,000,000 2,000,000 18,629,053, Maryland Trust Co 1,000,000 9,380, 032 Gwynn Oak Junction—The Liberty Bank of Baltimore County 25, 000 7,000 630, 398 Hamilton—Hamilton Bank 30, 000 12,500 659, 807 O verlea—Overlea Bank 50, 000 20,000 948, 80S' NORTH CAROLINA. Asheville—Battery Park Bank 100,000 100,000 3,342,129- Charlotte- American Trust Co 1,220,000 477,400 13,171, 510 Independence Trust Co 1,000,000 500,000 5,388, 315 Forest City—The Farmers Bank & Trust Co 100,000 75,000 1,347, 778 Moorehead City—Bank of Moorehead City 50,000 2,500 449,868. New Bern- New Bern Banking & Trust Co 100,000 25,000 1,557,611 The Peoples Bank 100, 000 50,000 1,819, 506 Tarboro—Farmers Banking & Trust Co 100, 000 50, 000 1,488,0S5 Wilson—Tho Planters Bank 100,000 25,000 751,622 Winston-Salem—Wachovia Bank & Trust Co 1,333,100 750,000 29,179,843. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

234 *.NNTJAL REPORT FEDERAL RESERVE BOARD. Capital. Surplus. Total resources. DISTRICT NO. 5—Continued. SOUTH CAROLINA. Charleston—Carolina Savings Bank $200,000 $200,000 S3,484,469 Cheraw— Bank of Cheraw 110,000 50,000 786,01-9 Merchants & Farmers Bank 100,000 20, 000 556,103 Chester—Commercial Bank 100,000 90, 000 1,295,977 Darlington—Bank of Darlington 100,000 100,000 1,525,117 Florence—Commercial & Savings Bank 250,000 80,000 1,206,988 Georgetown- Bank of Georgetown 100,000 100,000 1,103,936 Peoples Bank of Georgetown 100, 000 40,000 626,265 Hartsville—Bank of Hartsville 75, 000 42, 500 1,196,019 Rock Hill—Citizens Bank & Trust Co 100, 000 10, 000 954,674 St. George—The Farmers Bank 25, 000 9,000 329,958 St. Matthews—Tho Home Bank 50, 000 30,000 450,638 Sumter—Peoples Bank 100, 000 30, 000 650,306 Union—Nicholson Bank & Trust Co 75,000 50, 000 951,679 Westminster—Westminster Bank 100,000 25,000 846,437 Woodruff—Bank of Woodruff 77,800 30,050 561,716 • VIRGINIA. Blackstone—Citizens Bank & Trust Co 100,000 60,000 682,758 Cambria—Cambria Bank, (Inc.) 30,000 6,000 272,778 Charlottesville—Commerce Bank & Trust Co 100,000 5,000 222,156 Chase City—Peoples Bank & Trust Co 100,000 15,000 544,082 Christiansburg—Bank of Christiansburg 34,000 100,000 1,280,548 Emporia— Greensville Bank 100,000 135,000 1,059,423 Merchants & Farmers Bank 80,000 85,000 732,633 Floyd—Peoples Bank of Floyd County 35,000 25,000 286,703 Galax—The Peoples State Bank (Inc.) of Galax. 25,000 18,700 346,132 Kenbridge—Stato Bank of Kenbridge 36,900 9,225 213,097 Lynchburg—United Loan & Trust Co 300,000 200,000 1,680,470 Norfolk- Citizens Bank of Norfolk ., 000,000 500,000 8,377,607 Marine Bank of Norfolk 220,000 110, 000 2,552,417 Petersburg—Petersburg Savings & Trust Co ., 000,000 100,000 4,785,016 Richmond— Bank of Commerce & Trusts 500,000 500,000 5,201,779 Sayings Bank of Richmond 200,000 300,000 2,550,718 Union Bank of Richmond 500,000 750,000 3,971,413 Rural Retreat—Peoples Bank of Rural Retreat.. 35,000 182,425 WEST VIRGINIA. (See also District No. 4.) Berwind—The Berwind Bank 50,000 50,000 1,122,0S9 Charleston—Kanawha Valley Bank 400,000 1,200,000 12,702,505 Franklin—Franklin Bank 40,000 12,000 308,614 Grafton—Grafton Banking & Trust Co 100,000 50,000 1,287, 838 Hurricane—Putnam County Bank 50,000 40, 000 411,1S9 Total 14,756,800 9,521,875 168,803,678 DISTRICT NO. 0. ALABAMA. Birmingham— American Trust & Savings Bank 500,000 250,000 10,867,203 Birmingham Trust; & Savings Bank 500,000 700, 000 15,554,427 Carrollton—Pickens County State Bank 60, 000 1,000 171,544 Clayton—Bank of Commerce 50,000 4,000 191,112 Cullman—Alabama Bank & Trust Co 50,000 5,000 304,210 Eufaula—Bank of Eufaula 250, 000 5,000 658,298 Hartselle— Farmers & Merchants Bank 50,000 181,009 Huntsville—Farmers State Bank 100,000 35,000 594,498 Marion—Marion Central Bank 50,000 100,000 534,122 Mobile— Merchants Bank. 200,000 350,000 7,392,307 Peoples Bank 200,000 300,000 7,787,019 Montgomery—Merchants Bank of Montgomery. 100,000 25,000 1,403,405 Pittsview—Bank of Pittsview 25,000 2,500 117,160 Talladega—Bank & Trust Co 100,000 16,000 497,812 Union Springs—American Bank 50,000 10,000 294,313 FLORIDA. Deland—Volusia County Bank 100,000 125,000 1,827,903 Jacksonville—American Trust Co 200,000 25,000 1,028,324 Lakeland—Central State Bank of Lakeland 100,000 352,440 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 235 Total Capital. Surplus. resources. DISTRICT NO. 6—Continued. FLORIDA—continued. Leesburg—Leesburg State Bank $30,000 $15,000 $622.223 Miami—The Southern Bank & Trust Co 100,000 1,43< 709 Ocoee—Bank of Ocoee 25, 000/ 2,500 97,521 Orlando—Bank of Orange & Trust Co 200, 000 50,000 1,282,309 Tallahassee—The Exchange Bank 50,000 12,500 418.430 Tampa—The Citizens American Bank & Trust Co. 1,000,000 300,000 9,204,683 Winter Park—Union State Bank 30,000 4,000 3*4,926 GEORGIA. Athens- American State Bank 100,000 20,000 707,661 Commercial Bank of Athens 100,000 20,000 924,881 Atlanta— Atlanta Trust Co 1,000,000 125,000 2,970,197 Central Bank & Trust Corporation 1,000,000 500,000 12,647; 490 Georgia Savings Bank & Trust Co 500,000 150,000 2,480,580 Trust Co. of Georgia 1.000,0n0 1,500,000 4,528,494 Bowersville—Bank of Bowersville 25,000 5,000 124,212 Brunswick— Brunswick Bank & Trust Co 150,000 100,000 1,608,491 Glynn County Bank 100,000 20,000 914,795 Calhoun—Peoples Bank of Calhoun 55,000 11,000 539', 958 Camilla—Bank of Camilla 50,000 50,000 467,746 Canon— The Canon Bank 25,000 12,500 108,986 The Farmers Bank 25 000 83,850 Carrollton—Peoples Bank 60,000 27,000 513.856 Cave Spring—Bank of Cave Spring 25,000 25,000 266,829 Chipley—Farmers & Merchants Bank 25,000 15,000 215,870 Commerce— Commerce Bank & Trust Co 100,000 > 301,264 Northeastern Banking Co 100,000 60,000 739,231 Donaldsonville—Bank of Donaldsonville 100,000 50,000 660,571 Forsyth—Monroe County Bank 25,000 25,000 278,123 Cravson—Bank of Grayson 40,000 10,000 145,194 Hartwell— The Farmers & Merchants Bank of Hartwell. 100,000 12,000 494,262 Hartwell Bank 60,000 30,000 531,754 Jackson—Jackson Banking Co 100,000 20,000 395,055 La Grange—The La Grange Banking & Trust Co. 250,000 650,000 3,738,471 Lexington—Oglethorpe County Bank 25,000 25,000 337,130 Louisville—Bank of Louisville 25,000 55,000 491,323 Monroe—Bank of Monroe 300,000 75,000 1,085,669 Metter—Citizens Bank 30,000 20,000 206,444 Plains—Plains Bank 50,000 35,000 562,223 Sardis—Peoples Bank 25,000 6', 000 96,816 Sasser—Bank of Sasser 25,000 25,000 163,641 Savannah— American Bank & Trust Co 200,000 12,500 1,215,518 Citizens & Southern Bank 2,000,000 2,500,000 45,334,640 Citizens Trust Co 200,000 50,000 1,414)194 The Hibernia Bank of Savannah 200,000 300,000 6,531,119 Mercantile Bank & Trust Co 300,000 35,000 1,802,608 Savannah Bank & Trust Co 700,000 700,000 7,939,943 Swainsboro—The Central Bank 25 000 25,000 Valdosta—Exchange Bank of Valdosta 100,000 14 800 316,880 Wadley—Bank of Wadley 25,000 10,000 200,791 West Point—Citizens Bank 100,000 16,500 438,556 Winder- Farmers Bank.. 50,000 8,000 387,582 North Georgia Trust & Banking Co.. 200,000 24,000 1,050,498 Winterville—Pfttard Banking Co 25,000 11,000 141,582 LOUISIANA. (See also District No. 11.) Baton Rouge—Union Bank & Trust Co 150.000 50,000 3,008,081 Gretna—Jefferson Trust & Savings Bank 50,000 5,000 635,276 Iota—Bank of Iota 25,000 10,000 328,444 New Orleans- American Bank & Trust Co 200,000 23,000 910,031 Canal-Commercial Trust & Savings Bank 4,000,000 2,000,000 60,739,149 Citizens Bank & Trust Co. of Louisiana 1,000,000 250,000 8,719,370 Hibernia Bank & Trust Co 2,000,000 2,500,000 55,991,477 Interstate Trust & Banking Co 750,000 575,000 13,717,237 Liberty Bank & Trust Co 500,000 115,000 2,893,766 Marine Bank & Trust Co 1,500,000 800,000 19,273,782 New Roads—Pointe Coupee Trust & Savings Bank.. 60.000 6,600 373,615 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

236 ANNUAL REPORT FEDERAL RESERVE BOARD. Total Capital. Surplus. resources. DISTRICT NO. 6—Continued. TENNESSEE. (See also District No. 8.) Chattanooga—Chattanooga Savings Bank $750. 000 $250,000 $6,821,697 Nashville—Bank of Tennessee 2 2 0 5 0 , , 0 0 0 0 0 0 50,000 3,2 1 3 0 2 6 , , 7 2 7 5 6 7 Wartrace—Wartrace Bank & Trust Co 25,050,000 16,332,400 346,052,743 Total DISTRICT NO. 7. (See also District No. 8.) Auburn—Auburn State Bank 25,000 25,000 544,319 Barringtqn—First State Bank 50,000 15,000 458,901 Blandisville—Huston Banking Co 60,000 40,000 1,382,267 Bloomington-—State Bank of Bloomington 100,000 150,000 2,276,677 Chicago- Austin State Bank 200,000 65,000 5,127,520 Capital State Savings Bank 200,000 30,000 2,517,957 Central Trust Co. of Illinois 000,000 1,000,000 73,576,618 Chicago Trust Co 000,000 400,000 13;772,449 Depositors State Bank 300,000 150,000 6,213,627 First Trust & Savings Bank 250,000 5,500,000 101,147,473 Foreman Bros. Banking Co 500,000 1,500,000 36,672,141 Great Lakes Trust Co 000,000 600,000 11,737,372 Harris Trust & Savings Bank 000,000 3,000',000 41,747,258 Home Bank & Trust Co 300,000 200,000 6,603,402 Hyde Park State Bank 200,000 100,000 3,716,205 Illinois Trust & Savings Bank 000,000 10,000,000 142,251,228 Independence State Bank 200,000 27,000 3,430,585 Kaspar State Bank 500,000 300,000 13,501,064 Madison & Kedzie State Bank 500,000 150,000 4,704,080 Mechanics & Traders State Bank 200,000 50,000 2,784,919 Mercantile Trust & Savings Bank 400,000 112,5C0 6,134,748 Merchants Loan & Trust Co 000,000 9,000,000 126,112,318 Noel State Bank. 500,000 100,000 6,330,039 Northern Trust Co 2,000,000 3,000,000 48,821,820 Northwestern Trust & Savings Bank 750,000 150,000 20,981,826 Second Security Bank 200,000 100,000 4,649,946 Security Bank of Chicago 400,000 250,000 7,644,109 Standard Trust & Savings Bank 000,000 500,000 11,366,416 State Bank of Chicago :', 500,000 3,500,000 48,836,679 Union Trust Co 1,000,000 2,700,000 52', 759,927 United States Bank of Chicago 200,000 40,000 1,668,701 Woodlawn Trust & Savings Bank 250,000 100,000 5,831,567 Cicero— Morton Park State Bank 100,000 20,000 1,382,936 Western State Bank 200,000 25,000 2,290,359 Cowden—State Bank of Cowden 25,000 10,000 257,227 Des Plaines—Des Platnes State Bank 50,000 35,000 1,078,490 Divernon—First State Bank 50,000 2,500 624,461 Eureka—Farmers State Bank 100,000 10,000 676,748 Evanston— Evanston Trust & Savings Bank 100,000 12,000 1,448,319 State Bank & Trust Co 300,000 300,000 6,632,787 Fulton—Whiteside County State Bank 50,000 6,000 578,255 Geneva—State Bank of Geneva 50,000 10,000 758,536 Hinsdale—Hinsdale State Bank 50,000 25,000 753,981 Joliet— Commercial Trust & Savings Bank 100,000 5,000 1,291,355 Joliet Trust & Savings Bank 100,000 35,000 1,108,840 Xewanee—Union State Savings Bank & Trust Co. 150,000 25,000 1,533,600 La Grange—La Grange State Bank 50,000 25,000 1,592,291 Magnolia—First State Bank 25,000 6,000 291,196 Marshall—Marshall State Bank 60,000 6,000 335,939 Martinsville—Martinsville State Bank 50,000 20,000 484,303 Matteson—First State Bank of Mattesqn 25,000 10,000 176,642 Mattoon—Central Illinois Trust & Savings Bank... 100,000 75,000 1,130,815 Moline— Moline Trust & Savings Bank 300,000 150,000 4,403,501 Peoples Savings Bank & Trust Co 250,000 250,000 6,283,101 State Savings Bank & Trust Co 300,000 165,000 5,108,000 Mount Carroll- Carroll County State Bank 50,000 50,000 1,221,968 First State Savings Bank 50,000 50,000 1,017,128 Oak Park- Oak Park Trust & Savings Bank 200,000 50,000 3,155,180 Suburban Trust & Savings Bank 100,000 10,000 1,059,436 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 237 Total Capital. Surplus. resources. DISTRICT NO. 7—Continued. ILLINOIS—continued. Oswego—Oswego State Bank $50,000 $396,755 Rock Island—First Trust & Savings Bank 100,000 616,386 St. Charles—Stewart State Bank 100,000 1,290,242 Shannon—State Bank of Shannon 50,000 315,555 Springfield—Ridgeley Farmers State Bank 600,000 7,109,615 Wenona—First State Bank of Wenona 50,000 671,633 (See also District No. 8.) Angola—Steuben County State Bank 40,000 267,706 Bargersville—Farmers State Bank 25,000 327,557 Colfax—Farmers State Bank 25,000 209,419 Connersville—Fayette Bank & Trust Co 400,000 3,007,239 Cromwell—Sparta State Bank 27,500 211,893 Elkhart—St. Joseph Valley Bank 250,000 4,751,945 Hillsboro—Hillsboro State Bank 25,000 274,121 Jamestown—Citizens State Bank 30,000 439,239 Kentland— Discount & Deposit State Bank , 70,000 50,000 688,941 Kent State Bank 50,000 40,500 424,261 Lafqntaine—Farmers State Bank 35,000 1,000 167,722 Marion—Grant Trust & Savings Bank 100, COO 160,000 2,182,268 North Liberty—North Liberty State Bank 50,000 11,000 419,362 Richmond—Dickinson Trust Co 200,000 125,000 3,318,192 Rochester—United States Bank & Trust Co 75,000 25,000 887,061 South Bend- American Trust Co 200,000 128,000 4,427,544 St. Joseph Loan & Trust Co , 800,000 150,000 4,475,597 South Whitley—Gandy State Bank 25,000 15,500 317,950 Terre Haute—The Terre Haute Trust Co 500,000 500,000 8,112,766 Tipton—Farmers Loan & Trust Co 50,000 50,000 737,868 IOWA. Algona—County Savings Bank 100,000 60,000 2,301,656 Alta Vista—Alta Vista Savings Bank 30,000 13,000 611,660 Ames—Story County Trust & Savings Bank 50,000 14,000 847,328 Audubon—Iowa Savings Bank , 50,000 1,000 324,127 Avoca—Avoca State Bank 50,000 20,000 848,750 Barnes City—Farmers Savings Bank 50,000 15,000 630,880 Battle Creek—Battle Creek Savings Bank 100,000 893, 651 Bellevue—Bellevue State Bank 30,000 30,000 1,282,446 Bennett—Bennett Savings Bank 50,000 10,000 483, 888 Blairsburg— State Bank of Blairsburg 25,000 10,000 292,549 Brighton—Brighton State Bank 50,000 25,000 558,611 Britt—Commercial State Bank 60,000 70,000 1,242,519 Cedar Falls—Security Trust & Savings Bank 50,000 10,000 440,063 Cedar Rapids—Iowa State Savings Bank 200,000 65,000 2,865.659 Chariton—State Savings Bank 50,000 50,000 950,747 Charter Oak—Farmers State Bank 40,000 8,000 424,022 Cherokee—Cherokee State Bank 75,000 75,000 1,303,381 Clearfield—Taylor County State Bank 25,000 5,000 155.320 Clinton—Peoples Trust & Savings Bank 300,000 300,000 5,697,330 Corwith—Peoples State Bank 40,000 10,000 182,428 Davenport—American Commercial & Savings Bank 700,000 700,000 17, 887,832 Decorah— Citizens Savings Bank 50,000 50,000 765,019 Winneshiek County State Bank 150,000 75,000 2,474,325 Des Moines— Bankers Trust Co L 000,000 200,000 4,163,018 Central State Bank 250,000 250,000 6, 704,018 First Trust & Savings Bank 200, 000 7,500 1,449, 414 Iowa Loan & Trust Co 500,000 250, 000 9,309, 328 Dexter—Iowa State Bank 25,000 15,000 242,491 Early- Citizens State Bank 30,000 33,000 421,149 State Bank of Early 40, 000 20,000 388,288 Elberon—Farmers State Bank 40,000 20,000 673, 016 Eldora—Citizens Savings Bank 50,000 15,000 250,120 Elkader—Elkader State Bank 50,000 25,000 1, 062, 330 Ellsworth- Farmers State Bank 25,000 5,000 192,029 State Bank of Ellsworth 35,000 15, 000 348,222 Fairbank—Fairbank State Bank 26,000 24, 000 596, 518 Fairfield—Iowa State Savings Bank 200,000 75, 000 2,041, 378 Farragut—Commercial Savings Bank 40,000 10,000 247,393 Fort Madison- American State Bank 100,000 10,000 1,324,765 Fort Madison Savings Bank 100, 000 50,000 1, 913, 592 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

238 ANNUAL REPORT FEDERAL RESERVE BOARD. Total resources. DISTRICT NO. 7—Continued. 10 WA—continued. Fostoria—Citizens Savings Bank $25,000 $5,000 $158, 960 Garwin—Garwin State Bank 50,000 25, 000 548,050 Gilbert—Gilbert Savings Bank 50, 000 5,000 340, 049 Gilman—Citizen Savings Bank 50, 000 6,000 519,073 Grand River State Bank 25, 000 15,000 364, 848 Grant—Farmers Savings Bank 25,000 16,000 285, 991 Greenfield—Greenfield Savings Bank 30,000 5,000 322,881 Hudson—Hudson Savings Bank 50, 000 20, 000 648, 994 Humboldt—Peoples State Bank 100, 000 35, 000 880,208 Jefferson—Jefferson Savings Bank 50, 000 9,000 567, 817 ICnoxville—Guaranty State Bank 50, 000 15, 000 555,999 Lakota—Farmers & Drovers State Bank 30, 000 10,000 276, 435 Leon—Farmers & Traders State Bank 100, 000 10,000 981, 874 Lockridge—Lockridge Savings Bank 25, 000 17, 500 433, 701 Logan—State Savings Bank 50, 000 11,000 461, 299 Lowden—Lowden Savings Bank 25,000 16, 000 385, 99a Lyttori—Farmers Savings Bank 30, 000 17, 500 498, 90S Magnolia—Magnolia Savings Bank 25, 000 10, 000 228,701 Malcom—Malcom Savings Bank 50, 009 30, 000 484.678 Mapleton—Mapleton Trust & Savings Bank 75, 000 11, 000 718, 740 Marshalltown—Marshalltown State Bank 100, 000 50,000 2, G91,426 Mason City—Commercial Savings Bank 200, 000 30, 000 1, 864,106 Mechanicsville—Mechanicsville Trust & Savings Bank.. 50, 000 50,000 694, 268 Mediapolis—Commercial State Bank 100, 000 40, 000 581, 478 Missouri Valley—State Savings Bank 50, 000 10, 000 599, 315 Mondamin—Mondamin Savings Bank 35, 000 15,000 374, 818 Monticello— Lovell State Bank 200, 000 100,000 1,198,110 Monticello State Bank 200,000 200. 000 2, 436,160 Moville—Moville State Bank 35,000 23'000 405. 835 New Hampton—State Bank of New Hampton 50,000 45,000 903,698. Newton— Citizens State Bank 60, 000 15,000 604,634 Jasper County Savings Bank 100, 000 50, 000 1,367, 376 Ogden—City State Bank 50,000 20,000 659,174 Osage—Home Trust & Savings Bank 50,000 25,000 668,796 Osceola—Iowa State Bank 50,000 7,000 405,035 Ottumwa—Ottumwa Savings Bank 100,000 30,000 1,535,981 Perry—Peoples Trust & Savings Bank 50,000 2,300 544,348 Remsen—Farmers Savings Bank 50,000 22,000 511,981 Riceville—Riceville State Bank 25,000 15,000 ' 252,224 Roland—Farmers Savings Bank 35,000 25,000 504,108. Royal—Home State Bank 25,000 3,500 225,034 Sac City- Farmers Savings Bank 100,000 30,000 778,640 Sac County State Bank 75,000 100,000 1,251,137 Schaller—Schaller Savings Bank 25,000 25,000 390,188 Shenandoah—Security Trust & Savings Bank 60,000 6,000 395,254 Sibley—Sibley State Bank 50,000 15,000 613,110 Sioux Center—Sioux Center State Bank 25,000 35,000 337,590 Sioux City—Union Trust & Savings Bank 100,000 10,000 1,081,237 Storm Lake—Security Trust & Savings Bank 75,000 3,453 419,072 Sutherland—First Savings Bank 50,000 10,000 403,937 Terril—Terril Savings Bank 25,000 2,000 209,264 Thompson—State Bank of Thompson 30,000 8,000 277,011 Tipton—Farmers & Merchants Savings Bank 50,000 20,000 495,059 Ute— Farmers Savings Bank 25,000 139,255 State Savings Bank 50,000 15,000 342,657 Vail—Farmers State Bank 50,000 12,500 377,034 Van Wert—Van Wert State Bank 25,000 25,000 341,992 Wapello—Wapello State Savings Bank 30,000 10,0C0 544,821 Waterloo—Waterloo Bank & Trust Co 200,000 50,000 1,666,13a Winterset—Madison County State Bank 125,000 125,000 1,336,618 Webster City—The Hamilton County State Bank 100,000 30,000 1,663,582 (See also District No. 9.) Adrian— Adrian State Sayings Bank 120,000 120,000 2,288,978 Commercial Savings Bank 110,000 30,000 1,741,391 Lena wee County Savings Bank 150,000 50,000 2,298,796 Albion— Albion State Bank 50,000 40,000 1,184,222 Commercial & Savings Bank 75,000 40,000 1,191,171 Alpena—Alpena County Savings Bank 100,000 200,000 3,910,334 Ann Arbor- Farmers & Mechanics Bank 200,000 75,000 2,712,362 State Savings Bank 300,000 250,000 4,035,210 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 239 Surplus. res T o o u t r a c l es. DISTRICT NO. 7—Continued. MICHIGAN—continued. Armada- Armada State Bank $25,000 $20,000 $506,081 Farmers State Bank 25,000 10,000 363,455 Bay City- Bay City Bank 250,000 250,000 5,413,024 Farmers State Sayings Bank 100,000 25,000 1,898,101 Peoples Commercial & Savings Bank 400,000 500,000 11,057,967 Bellevue—Farmers State Bank 25,000 5,000 195,588 Benton Harbor—Benton Harbor State Bank 100,000 40,000 2,113,459 Big Rapids— Big Rapids Savings Bank 50,000 12,500 912,012, Citizens State Bank 50,000 25,000 1,535,491 Birmingham—First State Savings Bank 100,000 20,000 1,482,411 Britton—Peoples State Savings Bank 25,000 5,000 371,241 Caledonia—State Bank of Caledonia 50,000 10,000 525,835 Caro—State Savings Bank 112,500 87,500 1,733,065 Carson City—Farmers & Merchants State Bank- 25,000 5,000 314,925 Carsonville—The First State Bank 25,000 5,000 548,198 Cassopolis—Cass County State Bank 40,000 3,800 463,680 Charlotte—Eaton County Savings Bank 100,000 20,000 1,359,996 Chelsea— Kempf Commercial & Savings Bank 40,000 40,000 853,986 Farmers & Merchants Bank 25,000 25,000 772,970 Coloma—State Bank of Coloma 25,000 15,000 881,017 Constantine—Commercial State Bank 25,000 5,000 348,061 Coopersville—Peoples Savings Bank 25,000 3,000 458,661 Croswell—First State Savings Bank 3J, 000 6,000 662,725 Davison—Davison State Bank 59,000 8,000 568,765 Dearborn—Dearborn State Bank 100,000 165,000 2,313,864- Detroit- American State Bank 1,000,000 400,000 19,189,629 Bank of Detroit 1,000,000 350,000 21,368,444 Central Savings Bank 1,000,000 200,000 19,898,034 Detroit Savings Bank 1,500,000 1,500,000 29,788,030 Dime Savings Bank 1,500,000 2,100,000 41,006,723 First State Bank 1,000,000 400,000 15,264,277 Peninsular State Bank 2,500,000 1,250,000 40, 899,293 Peoples State Bank 5,000,000 7,500,000 129,533,847 United Savings Bank 500,000 225, 000 7,729,715 Wayne County & Home Savings Bank 4,000,000 5,000, 000 91,949,520 Edmore—Edmore State Bank 30,000 9,000 517,256 Elk Rapids—Elk Rapids State Bank 35,000 15,000 387,239 Evart—First State Savings Bank 50,000 10,000 803,333 Farmington—Farmington State Savings Bank... 40,000 20,000 735,455 Fenton— Commercial Savings Bank 50,000 30,000 685,977 Fenton State Savings Bank 25,000 17,500 834,739' Flint- Citizens Commercial & Savings Bank 443,000 250,000 5,418,361 Genesee County Savings Bank 500,000 500,000 8,801,978 Industrial Savings Bank 500,000 300,000 10,515,738 Union Trust & Savings Bank 400,000 200,000 6,180,815 F F l o u u s n h t i a n i g n — — P B e a o n p k le s o f S F ta o t u e n B ta a i n n k 2 25 5 ,;0 0 0 0 0 0 1 5 5 , , 0 0 0 00 0 2 34 2 7 4 , , 7 4 0 7 9 1 - Frankenmuth— Frankenmuth State Bank 50,000 30,000 997,476 Fremont— Fremont State Bank 25,000 25,000 734,012 Old State Bank 50,000 25,000 1,178,784 Grand Haven- Grand Haven State Bank 100,000 75,000 2,300, 111 Peoples Savings Bank 50,000 25,000 1,078,302 Grand Rapids— City Trust & Savings Bank 200,000 40,000 3,171,008 Commercial Savings Bank 300,000 60,000 3,6(7,916 Grand Rapids Savings Bank 400,000 250,000 12,222,657 Kent State Bank 500,000 500,000 13,118,132 Peoples Savings Bank 200,000 100,000 2,468,028 Greenville—Commercial State Savings Bank 50,000 30,000 1,114,222 Hart—Oceana County Savings Bank 40,000 13,000 689,964 Highland Park—Highland Park State Bank 1,000,000 800,000 18,001,094 Hillsdale—Hillsdale Savings Bank 100,000 25,000 1,157, Oil Holland- First State Bank 100,000 25,000 2,715,153 Holland City State Bank 100,000 50,000 2,036,793 Holly—First State & Savings Bank 100,000 50,000 1,633,531 Hopkins—Hopkins State Savings Bank 25,000 5,000 524, 891 Howell—First State & Savings Bank 75,000 17,000 618,761 Hudson—Thompson Savings Bank 100,000 50,000 1,580,309 Imlay City— Lapeer County Bank 50,000 10,000 1,174,234 Peoples State Bank 50,000 10,000 938,042 Ionia—State Savings Bank 100, 000 100, 000 1,668,622 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

240 ANNUAL REPORT FEDERAL RESERVE BOARD. Total resources. DISTRICT NO. 7—Continued. M ICHI G AN—continued. Jackson— Central State Bank $100,000 $26,000 $2,099,072 Jackson State Savings Bank 300,000 125, 000 2,756,264 Jonesville—Grosvenor Savings Bank 50,000 25,000 615,112 Lake Odessa—Lake Odessa State Savings Bank 25,000 12,500 524, 997 Lakeview— Commercial State Savings Bank 25,000 4,500 300,137 Farmers & Merchants State Bank 25,000 10,000 315,000 Lansing—Lansing State Savings Bank 150,000 100, 000 4,536,464 Lapeer—Lapeer Savings Bank 75,000 15,000 903, 766 Lenox and Richmond—The Macomb County Savings Bank. 50,000 10,000 1,112, 457 Lowell—City State Bank 25,000 10,000 642.142 Ludington—Ludington State Bank 100,000 25,000 1, 915,994 Manchester— Peoples Bank 25,000 15,000 561, 703 Union Savings Bank 25,000 50,000 830, 359 Manistee—Manistee County Savings Bank 100,000 100,000 2, 814, 938 Marcellus—G. W. Jones Exchange Bank 40,000 25,000 567,281 Marshall—Commercial Savings Bank 100, 000 20,000 1,301, 501 Marysville—Marysville Savings Bank 100,000 50,000 473, 933 Mason- Farmers Bank 50,000 10,000 652,098 First State & Savings Bank 25,000 15,000 722,841 Midland—Chemical State Savings Bank 50,000 15,000 917,827 Milan—Milan State Savings Bank 25,000 10,000 387, 580 Milford—First State Bank 25,000 12,500 698, 52 Monroe—B. Dansard & Sons State Bank 200, 000 30, 000 3,318,979 Montague—Farmers State Bank 25, 000 5,000 427,479 Morenci—Wakefield State Bank 50,000 30,000 1, 028,805 Mount Clemens—Ullrich Savings Bank 100,000 100,000 1,973, 015 Mount Pleasant- Exchange Savings Bank 50,000 30,000 1, 532, 569 Isabella County State Bank 60,000 15,000 1, 533, 853 Nashville- Farmers & Merchants Bank 35,000 35,000 920,365 State Savings Bank. 25,000 6,000 461,823 New Haven—New Haven Savings Bank 25,000 25,000 670, 877 Niles City—Niles City Bank 100,000 25,000 1,033,567 Northville—Lapham State Savings Bank 50,000 15,000 905,689 Onsted—Onsted State Bank 25,000 10,000 335, 421 Paw Paw—Paw Paw Savings Bank 40,000 10,000 707, 084 Petersburg—H. C. McLachlin & Co. State Bank 25, 000 5,000 532, 749 Petoskey— First State Bank 60, 000 15,000 1, 080,967 Pinconning—The Pinconning State Bank 30,000 6,000 703.143 Pontiac— American Savings Bank 400,000 53,000 2, 480,446 Oakland County Savings Bank 250, 000 75,000 3, 927, 571 Pontiac Commercial & Savings Bank 750,000 150, 000 10,632, 955 Port Huron—Federal Commercial & Savings Bank 300, 000 125,000 5, 857, 519 Bedford— Redford State Savings Bank 100, 000 41,250 893,373 Rochester—Rochester Savings Bank 50, 000 10,000 808, 793 Rogers City—Presque Isle County Savings Bank 35, 000 15,000 962, 204 Romeo—Romeo Savings Bank 100,000 25,000 1, 494, 964 Royal Oak- First State Bank of Royal Oak 50, 000 20,000 1, 384, 549 Royal Oak Savings Bank 74,300 64,300 1,337, 490 Saginaw— American State Bank 200, 000 100,000 4,'241, 819 Bank of Saginaw 1,000, 000 250,000 19, 771, 535 Sparta—Sparta State Bank 30,000 8,000 525,284 St. Charles—St. Charles State Bank 25,000 6,000 625,920 St. Clair—Commercial & Savings Bank 50,000 10,000 1,247,641 Saline—Saline Savings Bank 25,000 25,000 554,155 Saugatuck—Fruit Growers State Bank 100,000 15,000 951,701 South Haven—Citizens State Bank 100,000 50,000 1,350,575 Spring Lake—Spring Lake State Bank 25,000 7,000 409,645 Suttons Bay—Leelanau County Savings Bank 25,000 10,000 444,981 Tecumseh— Lilley State Bank 40,000 20,000 872,994 Tecumseh State Savings Bank 26,000 26,000 909,349 Traverse City—Traverse City State Bank 200,000 100,000 3,417,032 Vicksburg— Farmers State Bank 25,000 5,000 554,002 First State Bank 30,000 7,000 506,459 Warren—State Savings Bank of Warren 25,000 25,000 790,444 Washington—Washington Savings Bank 25,000 12,500 354,228 Wayne—Wayne Savings Bank 50,000 50,000 1,307,547 Williamston— Crossman & Williams State Bank 40,000 14,000 496,699 Williamston State Bank 50,000 10,000 563,946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 241 Capital. Surplus. DISTRICT NO. 7—Continued. WISCONSIN. (See also District No. 9.) Baraboo—Bank of Baraboo $100,000 $50,000 $2,212,658 Burlington—Bank of Burlington 125,000 25,000 1,838,888 Clinton—Citizens Bank of Clinton 50,000 10,000 587,596 Delavan—Citizens Bank of Delavan 50,000 25,000 984,342 Green Lake—Green Lake State Bank 39,600 20,000 475,488 Janesville—Bank of Southern Wisconsin 100,000 10,000 398,574 Kenosha—Merchants & Savings Bank 100,000 17,000 2,284,479 ICewaunee—State Bank of Kewaunee 60,000 15,000 1,041,919 Madison—Bank of Wisconsin 300,000 60,000 3,416,473 Milwaukee— American Exchange Bank 1,000,000 200,000 10,395,098 Badger State Bank 200,000 25,000 3,831,428 Marshall & Ilsley Bank 1,000,000 1,000,000 25,988,282 Second Ward Savings Bank 1,000,000 1,000,000 37,089,491 Mineral Point—Iowa County Bank 100, 000 50,000 1,512, 857 Mosinee—State Bank of Mosinee 45,000 25, 000 765, 588 Oakfield—Bank of Oakfield 50,000 10,000 322, 075 PlatteviUe—State Bank of Platteville 50,000 10,000 1,222,430 Plymouth— Plymouth Exchange Bank 100,000 50,000 1,087,387 State Bank of Plymouth 125,000 32,500 1,387,539 Seneca—Farmers & Merchants State Bank 25,000 15,000 523, 858 Sheboygan—Citizens State Bank 200,000 125,000 3,184, 501 Stratford—Stratford State Bank 50,000 10,000 459,396 Sturgeon Bay—Bank of Sturgeon Bay 100,000 20,000 2,161,846 Waupun—State Bank of Waupun 50,000 8,000 801,368 Wausau—Marathon County Bank 100,000 40,000 1,694,860 Winneconne—Union Bank of Winneconne 25,000 10,500 492,246 Total 98,083,900 0,300,103 1,827,068,885 DISTRICT NO. 8. ARKANSAS. Arkansas City—Desha Bank & Trust Co 100,000 150,000 1,473,212 Batesville— Citizens Bank & Trust Co 50,000 20,000 590,837 Union Bank & Trust Co 100,000 15,000 1,051, 526 Blytheville— Farmers Bank & Trust Co 50,000 50,000 1,065, 496 Brinkley—Monroe County Bank 50,000 5,000 311,079 Cabot—Peoples State Bank 25,000 2,500 104,652 Dardanelle—Dardanelle Bank & Trust Co 50,000 10,000 448, 994 Dumas—Merchants & Farmers Bank 50, 000 17,000 497,258 El Dorado—Bank of Commerce 50,000 5,000 233, 880 England—Citizens Bank & Trust Co 100, 000 15,000 625, 032 Fort Smith—Arkansas Valley Bank 100,000 20,000 1,255,132 Helena—Security Bank & Trust Co 250,000 50,000 2,180,636 Jonesboro— Bank of Jonesboro 200,000 250,000 2,988,520 Jonesboro Trust Co 100,000 50,000 1,497,404 Lake Village—Chicot Bank & Trust Co 150,000 37,500 1,034,877 Little Rock- American Bank of Commerce & Trust Co... 750,000 150,000 11,335,896 Bankers Trust Co 300,000 60,000 4, 535,950 Southern Trust Co 500, 000 100,000 5,374,152 Union & Mercantile Trust Co 400,000 200,000 6,777, 871 W. B. Worthen Co., Bankers 200,000 275,000 2,663,122 Magnolia— Columbia County Bank 50,000 16, 500 643,446 Farmers Bank <k Trust Co 50,000 38,000 878, 508 Marion—Crittenden County Bank & Trust Co.. 275, 000 75,000 2,439,438 Paris—American Bank & Trust Co 50,000 8,000 423, 722 Pine Bluff—Cotton Belt Savings & Trust Co.... 100,000 60,000 1,470, 932 Prescott—First State Bank 50, 000 2,500 365, 834 Bussellville—Bank of Russellville 75,000 37,750 536,136 Texarkana—Merchants & Planters Bank 200,000 20,000 1,172,016 Warren—Warren Bank 75,000 22,000 580,761 ILLINOIS. (See also District No. 7.) Belleville—Belleville Savings Bank 150,000- 400,000 4,577,673 East St. Louis—Union Trust & Savings Bank... 200,000 100,000 3,563,166 Edwardsville—Citizens State & Trust Bank 60,000 40,000 991,441 Effingham—Effingham State Bank 110,000 25,000 900,870 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 ANNUAL REPORT FEDERAL RESERVE BOARD. Total Capital. Surplus. resources. DISTRICT NO. 8—Continued. ILLINOIS—continued. Gillespie—Gillespie Trust & Savings Bank.. $50,000 $15,000 $689,109 Greenville—State Bank of Hoiles & Sons... 120,000 40,000 1,280,980 Harrisburg—Saline Trust & Savings Bank.. 100, 000 50,000 867,840 Lebanon—State Bank of Lebanon 50, 000 5,000 497,505 Litchfield—Litchfield Bank & Trust Co 100, 000 10,000 831,670 Louisville—Clay County State Bank 25, 000 7,500 200, 913 Madison—Union Trust Co 50, 000 5,000 297,586 Mount Carmel—First State Bank 100, 000 17, 500 525, 580 Mount Olive—Mount Olive State Bank 50,000 5,000 369,089 Quincy—State Savings Loan & Trust Co... , 000, 000 200,000 8, 745,132, INDIANA. (See also District No. 7.) Evansville—Mercantile Commercial Bank. 200,000 100,000 3,293,138 Paoli—Paoli State Bank 40, 000 10,000 398,053 KENTUCKY. (See also District No. 4.) Harrodsburg—State Bank & Trust Co 100,000 21,000 655,966 Louisville— Kentucky Title Savings Bank & Trust Co, 350,000 100,000 9,089,605 Liberty Insurance Bank 500, 000 750,000 17,435,003 Lincoln Savings Bank & Trust Co 500,000 100, 000 3,613,377 Ownesboro—Central Trust Co 200,000 50,000 1, 582,482: MISSISSIPPI. Rosedale—Bolivar County Bank 150,000 547, 273. (See also District No. 10.) Bertrand—Commercial Bank of Bertrand 30,000 2,000 96,086 Bowling Green—Pike County Bank 25,000 8,750 357, 262 Clayton—Farmers & Commercial Savings Bank 75,000 7,500 298, 907 Iberia—Farmers & Traders Bank of Iberia 25, 000 10, 000 251,136 Jefferson City—Exchange Bank of Jefferson City 100, 0C0 25,000 1,397, 572 Lexington—Lafayette County Trust Co 75, 000 15,000 379, 676 Linn Creek—Camden County Bank 25, 000 35,000 293, 290 Macon—State Exchange Bank of Macon 100, 000 20, 000 1,016, 546 Maplewood—Bank of Maplewood 50, 000 10,000 828, 359 Marshall—Wood & Huston Bank 100,000 200, 000 1, 806,464 St. Louis- American Trust Co 1,000,000 200, 000 10, 505,118 Cass Avenue Bank 200, 000 50,000 3,666, 957 Farmers & Merchants Trust Co 200, 000 50, 000 4, 261, 512 Franklin Bank 600, 000 900,000 11, 292, 557 Grand Avenue Bank 200,000 50, 000 2, 959, 665 Gravois Bank of St. Louis County 25,000 5,000 611, 378 International Bank " 500, 000 500,000 8, 916, 821 Jefferson-Gravois Bank 200,000 70, 000 2, 301, 913 Lafayette South Side Bank 1,000, 000 800,000 19,488,120 Liberty Central Trust Co 3,000,000 1,000, 000 51,733,861 Manchester Bank of St. Louis 250, 000 100,000 4,345, 811 Mercantile Trust Co 3,000,000 7,000, 000 63,155, 075 Mississippi Valley Trust Co 3,000,000 3, 500, 000 36,774, 740 Mound City Trust Co 200, 000 25,000 940, 553 South Side Trust Co 200,000 50, 000 2,680, 872 Tower Grove Bank 200, 000 50,000 4, 396, 884 United States Bank 1,000,000 700, 000 10, 518, 526 West St. Louis Trust Co 200, 000 25,000 2,112, 332 Versailles—Bank of Versailles 75, 000 9,000 535, 989 Waynesville—Bank of Waynesville 50,000 6,000 655,404 TENNESSEE. (See also District No. 6.) Alamo—Bank of Alamo 25,000 2,500 397,803 Bells—Bank of Crockett 25,000 1,250 329, 561 Brownsville—First State Bank 200,000 25,000 1,307,493 Dyer—Farmers & Merchants Bank of Dyer 40,000 21,441 354, 782 Dyersburg—Citizens Bank 50,000 50,000 1,147,661 Halls—Peoples Savings Bank & Trust Co 25,000 10,000 229,883 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBEESHIP. 243 Total Capital. Surplus. resources. DISTRICT NO. 8—Continued. TENNESSEE—continued. Memphis- Bank of Commerce & Trust Co $1,500,000 $1, 500,000 $22, 228,389 Commercial Trust & Savings Bank 600, 000 100,000 7, 344, 227 Guaranty Bank & Trust Co 500,000 50,000 5, 475,680 Union & Planters Bank & Trust Co 1, 800, 000 500, 000 26, 554, 813 Total 29,175,000 21,496,191 429,489,428 DISTRICT NO. 9. (See also District No. 7.) Gladstone—-Gladstone State Savings Bank 50,000 15,000 1,455,219 Gwinn— Gwinn State Savings Bank 25,000 20,000 432,268 Iron Mountain—Commercial Bank 100,000 50,000 2,006,471 Ironwood—Merchants & Miners State Bank 100,000 12,500 743,798 Laurium—State Savings Bank 100,000 125,000 1,260,256 Manistique—The Manistique Bank 50,000 35,000 995,101 Menomiiiee—The Commercial B#nk 100,000 20,000 980,507 Sault Ste. Marie- Central Savings Bank 100,000 20,000 1,209,896 Sanlt Savings Bank 100,000 35,000 1,743,667 South Range—South Range State Bank 30,000 30,000 692,120 MINNESOTA. Benson—Swift County Bank 50,000 50,000 1,501,810 Clarkfield—Clarkfield State Bank 50,000 10,000 905,426 Clinton—Clinton State Bank 25,000 6,000 299, 883 Hayfield—Farmers State Bank of Hayfield 25,000 14,000 638,418 Jeflers—State Bank of J effers 25,000 20,000 366,021 Lake City—Lake City Bank of Minnesota 50,000 50,000 952,209 Lewiston—Security State Bank 75,000 30,000 917,603 Luverne—Rock County Bank 50,000 15,000 685,507 Madelia—State Bank of Madelia 50,000 10,000 773,267 Minneapolis— North American Bank 200,000 200,000 6,665,702 St. Anthony Falls Bank 300,000 100,000 6,463,757 Wells-Dickey Trust Co 500,000 70,000 3,232,512 New Richland—State Bank of New Richland.-. 50,000 15,000 696,416 Red Wing—First Security State Bank 125,000 65,000 1,479, 013 Revere—State Bank of Revere 30,000 30,000 197,603 St. Paul- Central Bank 200,000 40,000 2,298,963 Peoples Bank 500,000 100,000 2,850,769 South St. Paul- Drovers State Bank of South St. Paul 100,000 50,000 2,096,631 Exchange State Bank 125,000 25,000 520,231 St. Peter—The Citizens State Bank of St. Peter 50,000 20,000 705,949 Spring Valley- Farmers State Bank 25,000 6,000 304,881 First State Bank 30,000 30,000 727,777 Waconia— Farmers State Bank of Waconia 25,000 .10,000 407,900 Walnut Grove—First State Bank 50,000 2,500 356,332 Westbrook—Citizens State Bank 25,000 10,000 301,163 Willmar—Kandiyohi County Bank 100,000 25,000 1,893,377 Winona— Deposit Bank. 300,000 200,000 4,061,873 Merchants Bank 200,000 50,000 3,763,277 MONTANA. Belgrade—Belgrade State Bank 50,000 50,000 568,402 Belt- Farmers & Miners State Bank 50,000 11,000 381,929 State Bank of Belt 50,000 412,484 Billings—Security Trust & Savings Bank 100,000 5,000 991,999 Boulder—Bank of Boulder 50,000 25,000 649,005 Bozeman— Gallatin Trust & Savings Bank 100,000 25,000 899,492 Security Bank & Trust Co 100,000 355,574 Broadus—Powder River County Bank •25,000 158,089 Browning—Stockmens State Bank 35,000 15,000 164,689 Butte— Miners Savings Bank & Trust Co 200,000 50,000 1,654,339 Metals Bank & Trust Co 300,000 200,000 6,566,581 Culbertson—The Citizens' State Bank 25,000 10,000 352,029 Denton—Denton State Bank 25,000 5,000 250,413 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

244 ANNUAL REPORT FEDERAL RESERVE BOARD. Total Capital. Surplus. resources. DISTRICT NO. 9—Continued. M ONTAN A—c on tinued. Dillon— Beaverhead State Bank $50,000 $1,500 $198,927 Security State Bank 50,000 5,000 201,256 East Helena—East Helena State Bank 50,000 11,300 205,021 Edgar—Edgar State Bank 30,000 1,500 154,631 Ennis—Southern Montana Bank 25,000 25,000 405,880 Eureka—Farmers & Merchants State Bank 25,000 14,000 493,077 Forsyth—Bank of Commerce 75,000 37,500 944,324 Fromberg—Clarks Fork Valley Bank 25,000 1,000 220,098 Hamilton—Rayalli County Bank 50,000 12,500 575,579 Hardin—Hardin State Bank 50,000 35,000 372,269 Helena- Banking Corporation of Montana 500,000 17,500 2,471,885 Conrad Trust & Savings Bank 200,000 100,000 2,313,658 Montana Trust & Savings Bank 150,000 75,000 1,969,591 Union Bank & Trust Co 250,000 150,000 4,432,063 Hingham—Hingham State Bank 35,000 7,000 312,411 Hinsdale—Valley County Bank 25,000 8,000 210,077 Huntley—Huntley State Bank 25,000 10,000 209,875 Inverness—Inverness State Bank 25,000 3,000 171,007 Joliet—Joliet State Bank 25,000 10,000 338,814 Kalispell—Bank of Commerce of Kalispell 100,000 18,000 738,467 Laurel—American Bank of Laurel 25,000 2,500 220,434 Le wist own— Bank of Fergus County 250,000 250,000 3,227,896 Empire Bank & Trust Co 100,000 35,000 926,983 Lewistown State Bank 100,000 25,000 516,394 Missoula—American Bank & Trust Co 100,000 14,000 1,866,088 Nashua—State Bank of Nashua 25,000 3,500 277,107 Opheim—First State Bank 25,000 5,000 205,100 Park City—Park City State Bank 40,000 2,000 412,516 Philipsburg—Philipsburg State Bank 40,000 15,000 491,471 Plentywood—State Bank of Plentywood 25,000 10,000 366,741 Reed Point—The Reed Point State Bank 25,000 6,500 133,977 Richey—First State Bank of Richey 25,000 5,000 138,827 Roundup—Citizens State Bank 50,000 35,000 907,604 Saco—Farmers & Merchants State Bank 25,000 1,000 237,247 Sidney—Yellowstone Valley Bank & Trust Co 100,000 12,500 569,170 Stevensville—First State Bank of Stevensville 40,000 10,000 386,048 White Sulphur Springs—The Central State Bank., GO, 000 15,000 309,141 Willow Creek—Willow Creek State Bank 25,000 15,000 323,626 Wolfe Point—First State Bank 30,000 12,000 506,000 Worden—The Farmers State Bank 25,000 5,000 248,080 Wyola—Little Horn State Bank 25,000 6,750 117,364 NORTH DAKOTA. Enderlin—Enderlin State Bank 50,000 10,000 559,329 Golden Valley—First State Bank.... 25,000 2,500 204,064 Jamestown—Security Savings Bank. 50,000 10,000 157,615 Noonan—Security State Bank 25,000 5,000 453,118 SOUTH DAKOTA. Bellefourche—Butte County Bank 75,000 25,000 1,124,468 Brookings—Bank of Brookings 150,000 40,000 2,534,765 Camp Crook—Little Missouri Bank 25,000 10,000 393,787 Chamberlain—Brule State Bank 50,000 10,000 846,990 Groton—Brown County Banking Co 25,000 10,000 687,171 Hecla—Farmers & Merchants State Bank 25,000 10,000 353,858 Mitchell—Commercial Trust & Savings Bank. 100,000 15,000 1,143,458 Newell—Reclamation State Bank 25,000 5,000 235,970 Rapid City—Citizens' Bank & Trust Co 50,000 10,000 632,638 Sioux Falls- Commercial & Savings Bank 500,000 1,833,607 Sioux Falls Savings Bank 300,000 50,000 5,794,227 South Shore—South Shore Bank 25,000 5,000 287,753 Stratford—First State Bank 30,000 2,000 393,169 Timber Lake—Stock Growers State Bank 25,000 5,000 298,514 Webster—Security Bank & Trust Co 60,000 30,000 1,590,912 WISCONSIN. (See also District No. 7.) Arcadia—Bank of Arcadia 50,000 10,000 Balsam Lake—Polk County Bank 25,000 5,000 296,449 Boyceville—Bank of Boyceville 30,000 5,600 549,600 Ellsworth—Bank of Ellsworth 50,000 25,000 1,315,927 Glenwood City—First State Bank 42,000 1,000 419,927 Grantsburg—First Bank of Grantsburg 50,000 4,500 789,862 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 245 Capital. Surplus. Total DISTRICT NO. 9—Continued. WISCONSIN—continued. Hurley—Iron Exchange Bank $50,000 $30,000 $980,2081 New Richmond—Bank of New Richmond 75,000 37,500 1,558,285 West Salem—La Crosse County Bank 50,000 27,500 621,114 Whitehall—Peoples State Bank 30,000 6,000 579,379 Total 10,192,000 3,447,150 127,651,479 DISTRICT NO. 10. COLOBADO. Denver- American Bank & Trust Co 500,000 225,000 9,030,526; International Trust Co 500,000 500,000 12,981,659 Fort Lupton—Fort Lupton State Bank 25,000 15,000 547,461 KANSAS. Anthony—Home State Bank 25,000 2,500 260,409 Fairview—Fairview State Bank 30,000 17,000 266,079 Fort Scott—Fort Scott State Bank 100,000 40,000 1,410,374 Hiawatha—The Morrill & Janes Bank 100,000 50,000 1,046,357 Liberal—Citizens State Bank 50,000 20,000 548,809 Topeka—Kansas Reserve State Bank 200,000 59,000 1,941,314 Wichita- Southwest State Bank 200,000 60,000 1,612,508 The State Savings & Mercantile Bank 200,000 35,000 2,170,504 Winfield—State Bank 100,000 50,000 1,623,087 MISSOURI. (See also District No. 8.) Joplin—Conqueror Trust Co 200,000 125,000 3,041,204 Kansas City- Commerce Trust Co 1,000,000 1,000,000 44,240,472 Live Stock State Bank 200,000 37,500 1,758,716 Midwest Reserve Trust Co 2,000,000 200,000 18,310,019 Savannah—The Wells-Hine Trust Co 100,000 4,800 796,568 South St. Joseph—St. Joseph Stock Yards Bank. 350,000 150,000 4,157,679 NEBRASKA. Allen—Farmers State Bank 30,000 7,000 304,561 Aurora—The Fidelity State Bank 50,000 15,000 907,888. Broken Bow—Custer State Bank 35,000 15,000 346,446 Chappell—Chappell State Bank 50,000 25,000 645, 084 Cozad—Farmers State Bank 50,000 10,000 583, 553 David City—Butler County State Bank 50,000 15,000 384,139 Elgin—Elgin State Bank 100,000 20,000 863, 598 Genoa—Farmers State Bank 25,000 1,250 206,416 Kilgore—Kilgore State Bank 25,000 11,000 209,168 Lewellen—Bank of Lewellen 50,000 2,722 331,649 Lincoln—American State Bank 100,000 10,000 945,345 Meadow Grove— Meadow Grove State Bank 25,000 5,000 311,644 Security Bank 25,000 2,500 291,750 Neligh—Security State Bank 30,000 8,000 306,266 North Bend—First State Bank 25,000 17,500 579,025 Oakland—The Oakland State Bank 25,000 10,000 319,664 Ord—Nebraska State Bank 35,000 12,000 479,278 Pender—Pender State Bank 85,000 19,000 585,478 St. Edward—Farmers State Bank 25,000 2,000 257, 741 Sidney—American Bank 100,000 25,000 1,133,638 Wayne—State Bank of Wayne 50,000 15,000 983,610 Western—Saline County Bank 30,000 30,000 263,853 NEW MEXICO. (See also District No. 11.) Aztec—The Citizens Bank 40,000 10,000 272,323 50,000 10,000 542,92$ Santa Fe—Capital City Bank OKLAHOMA. (See also District No. 11.) 200,000 67,500 3,634,840 Ardmore— Guaranty State Bank 40,000 200 410,794 Billings—Citizens Bank of Billings 25,000 6,100 299,893 Bixby—The Bixby State Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

246 ANNUAL REPORT FEDERAL RESERVE BOARD. Total Capital. Surplus. resources. DISTRICT NO. 10—Continued. OKLAHOMA—continued. Chelsea—Bank of Chelsea $50,000 $8,500 $804,875 Clinton- Clinton State Bank 50,000 5,250 220,193 The First State Bank 50,000 6,500 721,508 Cordell— Cordell State Bank 30,000 4,100 409,696 Oklahoma State Bank 30,000 3,000 427,866 Ooltry—Bank of Goltry 25,000 5,000 222,634 Kingfisher—Citizens State Bank 50,000 2,800 710,643 Locust Grove—First State Bank 25,000 10,000 261,185 Okarche—First Bank of Okarche 50,000 15,000 494,635 Oklahoma City—First State Bank 200,000 30,000 3,428,723 Okmulgee— American State Bank 200,000 20,000 1,318,605 Guaranty State Bank 300,000 100,000 2,877,490 Pawhuska—Stockgrowers State Bank 60,000 6,000 4 560,345 Ponca City—Security State Bank 300,000 50,000 2,244,186 Stigler—First State Bank of Stigler 30,000 7,500 461,422 WYOMING. Cheyenne—Cheyenne State Bank 100,000 20,000 765,427 Evanstqn—Stockgrowers Bank 50,000 35,000 651,011 Mountain View—Uinta County State Bank 40,000 4,000 111,043 Total 8,895,000 3,295,222 138,835,805 DISTRICT NO. 11. (See also District No. 12.) Safford—Bank of Safford 33,000 42,000 672, 841 30,000 10,000 398,916 Tombstone—Cochise County State Bank. LOUISIANA. (See also District No. 6.) Monroe—Central Savings Bank & Trust Co 375,000 125,000 2,195,222 300,000 100,000 4, 715,214 Shreveport—Continental Bank & Trust Co NEW MEXICO. (See also District No. 10.) 100,000 65,000 1,053, 745 Albuquerque—The State Trust & Savings Bank 25,000 3,000 104,115 Cloudcroft—First State Bank 30,000 5,700 150,908 Corona—Stockmen's State Bank 60, 000 25,000 234, 026 Lovington—The First Territorial Bank 25, 000 10,000 247, 865 Mountainair—Mountainair State Bank 25,000 5,000 347, 594 Portales—Security State Bank OKLAHOMA. (See also District No. 10.) 40,000 10,000 249, 445 Broken Bow—The McCurtin County Bank 25, 000 1,250 159,640 Coleman—The Coleman State Bank 50,000 20,000 344, 912 Fort Towson— First State Bank 50, 000 22, 500 482, 544 Valliant—Farmers State Guaranty Bank TEXAS. Alice—Citizens State Bank 60,000 20,000 571, 946 Alpine—Alpine State Bank 30,000 35, 000 384, 806 Alto—Alto State Bank , 25,000 12,000 236,415 Anson—Anson State Bank 50, 000 55,000 635, 941 Avery—Avery State Bank 25,000 10, 000 131,470 Ballinger—Ballinger State Bank & Trust Co 60,000 12,000 414,393 Bay City- Bay City Bank & Trust Co 65,000 20,000 679,483 First State Bank 100,000 10,000 415, 967 Beaumont- Guaranty Bank & Trust Co 100,000 20,000 2,177, 422 Texas Bank & Trust Co 250, 000 130,000 3,117,170 Beeville—Beeville Bank & Trust Co 50,000 30,000 543, 321 Bishop—First State Bank of Bishop 25,000 10,000 391, 820 Bomarton—First State Bank 25,000 4,000 338, 540 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 247 Total Capital. Surplus. resources. DISTRICT NO. 11—Continued. TEXAS—continued. Bonham— Fannin County Bank $100,000 $50,000 SI, 336,133 First State Bank 200,000 100,000 1,439, 723 Bremorid—First State Bank 50,000 12,000 498, 203 Bridgeport—Bridgeport State Bank 25,000 2,000 139, 819 Brownfield—Brownfield State Bank 25, 000 25,000 392, 831 Bryan—First State Bank & Trust Co. of Bryan.. 100,000 50,000 830, 791 Canton—Texas State Bank 50,000 25,000 264, 426 Canyon—First State Bank 40,000 1,500 326, 333 Celina— The Celina State Bank 35,000 7,500 268, 712 First State Bank 50,000 40,000 472, 602 Childress—Farmers & Mechanics State Bank 50,000 50,000 911, 473 Clarendon—Farmers State Bank 50,000 3,030 335,026 Clifton- Farmers Guaranty State Bank 30,000 20,000 393, 865 First Guaranty State Bank 40,000 20,000 323, 497 Collinsville—First Guaranty State Bank 25, 000 8,000 269, 509 Colorado—First State Bank 30,000 3,000 316, 307 Commerce—Citizens State Bank 25, 000 7,500 210, 085 Copperas Cove—First State Bank 25, 000 12, 500 339,652 Corsicana—First State Bank 200, 000 40,000 1,318, 429 Cross Plains—First Guaranty State Bank 30, 000 256,165 Crowell—First State Bank 30, 000 26, 500 440,085 Cuero—First State Bank & Trust Co 100,000 46,000 748,355 Dallas- Central State Bank of Dallas 1,000,000 500,000 7,843,803 Dallas County State Bank 250,000 110,000 1,970,460 Guaranty Bank & Trust Co 1,000,000 100,000 5,864,413 DeKalb—First State Bank 50,000 50,000 400,244 Del Rio—Del Rio Bank & Trust Co 100, 000 80,000 770,621 Denison—Denison Bank & Trust Co 160,000 57,500 3,188,164 Denton—First Guaranty State Bank 50,000 6,000 460,004 East Bernard—Union State Bank 50,000 10,000 239,991 Edgewood—Farmers & Merchants State Bank... 35,000 10,000 211,736 El Paso— American Trust & Savings Bank 350,000 50,000 2, 857,145 El Paso Bank & Trust Co 200,000 20,000 2,851,286 Security Bank & Trust Co 200,000 20,000 2,293,340 JTalfurrias—Falfurriis State Bank 75,000 414,327 Ferris—Farmers & Merchants State Bank 50,000 13,000 268,227 .Flatonia—Flatonia State Bank 50,000 2,500 639,458 Floydada—First State Bank of Floydada 50,000 5,000 778,928 Forney—Forney State Bank 25,000 15, 000 244, 594 Franklin—First State Bank 30,000 15, 000 352, 292 Frost—The Citizens State Bank 25,000 50,000 330,590 Galveston— South Texas State Bank 200,000 100,000 4,144,918 Texas Bank & Trust Co 400,000 600,000 7,812,791 Ganado—The Farmers State Bank 35,000 5,000 124, 570 Gatesville— Guaranty State Bank & Trust Co... 50,000 10,000 543, 363 Georgetown—Farmers State Bank 50,000 50,000 858,836 George West—First State Bank 50,000 16, 500 345,398 Gilmer— Gilmer State Bank 50,000 15,000 239,681 •Goldthwaite—Trent State Bank 50,000 25,000 853,952 Gonzales—Gonzales State Bank & Trust Co 75,000 25,000 639, 073 Graford—First State Bank 50,000 20,000 266,993 Grand Prairie- First State Bank 40,000 20,200 318,442 Guaranty State Bank 25,000 127,323 Hallsville—Farmers State Bank of Hallsville 25,000 129,730 Hamlin—First State Bank 40,000 20,000 429,430 Hedley—Guaranty State Bank 25,000 12, 500 137,272 Henderson—First State Bank of Henderson 25,000 25,000 146,281 Hereford—First State Bank & Trust Co 50,000 50,000 675,729 Hillsboro—First State Bank 150', 000 15,000 992,189 Houston—State Bank <k Trust Co 200,000 10,000 2,905,961 Italy—Farmers State Bank 50,000 20,000 398,910 Jacksonville— Farmers Guaranty State Bank 50,000 14,000 333,296 First Guaranty State Bank 62, 500 22,875 586,466 Junction—Junction State Bank 100,000 110,000 688,002 Kaufman—First State Bank 100,000 80,000 667,887 Kenedy— Farmers &. Merchants State Bank 50,000 60,000 449,856 First State Bank & Trust Co 60,000 / 80,000 710, 829 Kerens—First State Bank 50,000 i 40,000 352, 591 Kilgore—Kilgore State Bank 25,000 ' 12,500 191,748 Killeen—First State Bank 25,000 13,000 589,491 Kirkland—First State Bank 50,000 321,493 45525°—21- -17 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

248 ANNUAL REPORT FEDERAL RESERVE BOARD. Total Capital. Surplus. resources. DISTRICT NO. 11—Continued. TEXAS—continued. Ladonia—First State Bank: $35,000 $15,000 $474,352 La Feria—Cameron County Bank of La Feria 25,000 3,000 161,827 Lamesa—First State Bank 30,000 40,000 560,872 Leakey—First State Bank 25,000 500 63,494 Leonard—First State Bank 50,000 10,000 397,974 Liberty—Liberty State Bank of Liberty 35,000 3,500 352,988 Lockney—Lockney State Bank 50,000 2,500 402,457 Longview—Commercial Guaranty State Bank of Longview. 50,000 269,896 Loraine—The First State Bank 30,000 30,000 443,223 Lorenzo—First State Bank 25,000 25,000 314,170 Lubbock— Lubbock State Bank 100,000 50,000 1,075,554 Security State Bank & Trust Co 100,000 6,000 653.948 Lufkin—Citizens Guaranty State Bank 75,000 5,000 509,344. Luling— Citizens State Bank 25,000 6,000 235,232 Liseomb Bank & Trust Co 75,000 55,000 413,820 McAllen—First State Bank & Trust Co 100,000 15,000 951,147 McGregor—First State Bank 50,000 5,000 429,202 McKinney—Central State Bank 75,000 7,000 692,138 Madisonville—Farmers State Bank of Madisonville 25,000 25,000 430,004 Malone—First State Bank ol Malone 25,000 8,000 165,911 Matador—First State Bank 25,000 12,500 392,717 Mathis—First State Bank 30,000 16,000 199,517 Maypearl— Citizens State Bank 25,000 25,000 231,528 Farmers & Merchants State Bank of Maypearl 25,000 25,000 2i7,542 Memphis—Citizens State Bank 75,000 50,000 636,647 Mercedes—Bank of Commerce & Trust Co 50,000 5,000 230,318 Mertens—First Guaranty State Bank 25,000 5,000 144,688 Moran—Moran State Bank 30,000 6,000 306,493 Mount Calm—First State Bank 40,000 8,000 211,397 Mount Pleasant—Guaranty State Bank 60,000 30,000 639,436 Munday—The First State Bank 35,000 5,000 330,801 Nacogdoches—Commercial Guaranty State Bank 100,000 50,000 1,997,780 Normangee—First State Bank 25,000 25,000 240,803 North Zulch—Farmers Guaranty State Bank 25,000 184,327 Orange—The Guaranty Bank & Trust Co 100.000 10,000 367,637 Paducah—First State Bank 50^000 50,000 462,855 Palmer—First Guaranty State Bank 25,000 17,500 210,928 Pampa—Gray County State Bank 25,000 10,000 252,915 Paris- First State Bank 150,000 100,000 1,969,042 Laniar State Bank & Trust Co 150,000 50,000 1,937,634 Pecos—Pecos Valley State Bank 110,000 37,000 648,377 Port Arthur—Merchants State Bank 100,000 42,000 1,855,257 Post City—First State Bank 25,000 1,875 156,975 Quanah—First Guaranty State Bank 100,000 50,000 1,180,193 Rails- First State Bank 25,000 15,000 242,684 Guaranty State Bank & Trust Co 60,000 4,000 440,599 Reagan—First State Bank 25,000 15,000 185,301 Rice—First State Bank of Rice 50,000 10,000 270,568 Richardson—Citizens State Bank 35,000 3,500 205,885 Roaring Springs—First State Bank 25,000 15,000 192,604 Robstown—First State Bank of Robstown 25,000 8,000 278,041 Rockwall—Guaranty State Bank 45, 000 7,700 738,763 Royse—First State Bank 50, 000 25,000 315.949 Rusk—Farmers & Merchants State Bank & Trust Co 100, 000 1,000 577,775 Sabinal—First State Bank 80,000 454,939 San Antonio—Central Trust Co 1,000, 000 160,000 9,231.114 San Augustine—Commercial Guaranty State Bank 50,000 6,000 589i 623 Santa Anna—First State Bank 35, 000 16,000 548,890 Savoy—First State Bank 25,000 7,500 207,958 Semihole—The First State Bank of Seminole 40,000 30,000 202, 878 Seymour—First Guaranty State Bank 35, 000 3,850 167,059 Shamrock—Farmers & Merchants State Bank 50, 000 50,000 475,855 Shiro—Farmers State Bank of Shiro 25,000 20,003 156,959 Silverton—Briscoe County State Bank 25,000 86,671 Sinton—Bank of Commerce 25, 000 *"25,'666" 465,809 Slaton—The First State Bank 40,000 2,000 322,678 Snyder—First State Bank & Trust Co 50,000 25,000 339,0i8 Spearman—Guaranty State Bank 25,000 3,000 97,283 Stamford—First State Bank 55, 000 18,500 871,063 Sweetwater—Texas Bank & Trust Co 100,000 85, 000 776,084 Terrell—First State Bank 200,000 165, 000 1,505,60S Tioga—First Guaranty State Bank 30, 000 15,000 250,501 T Tr r o en u t p o — n— Gu G a u r a a r n a t n y t y S t S at t e a t B e a B n a k nk 2 2 5 5 , , 0 0 0 0 0 0 2 7 0 , , 0 5 0 0 0 0 3 1 0 4 0 7 , , 1 3 1 3 6 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 249 Capital. Surplus. res T o o u t r a c l es. DISTRICT NO. 11—Continued. TEX AS—-continued. Tyler—Peoples Guaranty State Bank $100,000 $31,700 $1,347, 528 Valley Mills—Citizens State Bank 30, 000 3,000 158, 859 Valley V^ew—First Guaranty State Bank 25,000 10, 400 124, 060 Waco—First State Bank & Trust Co. of Waco.... 200, 000 30, 000 2,117,104 Waxahachie—Guaranty State Bank & Trust Co. 200,000 20,000 1,333,034 Weatherford—First State Bank 125, 000 20, 000 1,078,020 Wellington—Wellington State Bank 50,000 75, 000 622, 796 Wharton—Security Bank & Trust Co 50, 000 15, 000 385, 900 White Deer—First State Bank 25, 000 1,500 290, 678 Wills Point—First State Bank 100, 000 35, 000 594, 386 Winnsboro—Merchants & Planters State Bank.. 30, 000 30, 000 520, 747 Wolfe City—First State Bank 50, 000 25, 000 435, 912 Wood ville—Woodville State Bank 30,000 128, 586 Wortham—First State Bank 50, 000 2,500 283, 567 Wylic—First State Bank 50, 000 40, 000 345, 893 Total. 15,210,500 5,992,880 146,635,594 DISTRICT NO. 12. ARIZONA. (See also District No. 11.) Buckeye—Buckeye Valley Bank 25,000 4,500 167,804 Phoenix—The Valley Bank 500,000 100,000 7,184,626 CALIFORNIA. Alamdea—Alameda Savings Bank 236,300 160,000 4,892.550 Bakersfield—Security Trust Co 500,000 235,000 7,676,487 Bra wley—Imperial Valley Bank 100,000 55,950 1,132,569 Cedarville—Surprise Valley Bank 25,000 30,000 402,406 Chico—Peoples Savings & Commercial Bank 100,000 4,500 810,174 Downey—Los Nietos Valley Bank 50,000 20,000 746,335 Fresno— Fidelity Trust & Savings Bank 1,000,000 456,000 14,532,966 Fullerton—Standard Bank of Orange County 50,000 1,500 298,640 Holtville—The Holtville Bank 75,000 2,500 492,714 Kingsburg— Kingsburg Bank 100,000 40,000 1,448,857 Lemoore—Bank of Lemoore 100,000 40,000 1,379,597 Los Angeles— Guaranty Trust & Savings Bank 2,000,000 1,300,000 36,449,844 Los Angeles Trust & Savings Bank 3,000,000 1,750,000 53,294,610 Security Trust & Savings Bank 3,150,000 1,850,000 101,051,545 Union Bank & Trust Co 1,000,000 128,000 7,584,628 Marysville—Hideout Bank 250,000 310,930 5,931,260 Norwalk—Bank of Norwalk 25,000 15,000 489,199 Placerville—Eldorado County Bank 65,000 102,000 1,822,461 Sacramento—The Peoples Bank 800,000 103,000 8,305,647 St. Helena—Bank of St. Helena 85,000 29,500 963,831 San Bruno—California Bank of San Mateo County 25,000 150 131,558 San Fernando—The San Fernando Valley Savings Ban: 25,000 3,500 262,062 San Francisco— Anglo-California Trust Co 1,500,000 850,000 31,100,700 Bank of Italy 9,000,000 2,000,000 162,930,763 British American Bank 1,000,000 15,000 3,713,801 French-American Bank of Savings 1,000,000 275,000 15,318,221 Italian-American Bank 1,250,000 215,000 12,648,294 Mercantile Trust Co 4,000,000 3,000,000 71,702,871 The Mission Bank 200,000 120,000 3,430,430 San Francisco Savings & Loan Society 1,000,000 2,400,000 68,522,221 San Jose— Garden City Bank & Trust Co 500,000 625,000 10,287,133 The Growers Bank 300,000 30,000 817,376 Santa Ana—Orange County Trust & Savings Bank 300,000 90,000 2,316,200 Santa Barbara—Commercial Trust & Savings Bank 1,000,000 370,000 10,104,851 Santa Maria—Bank of Santa Maria 400,000 325,000 5,351,759 Santa Monica— Bank of Santa Monica 140,000 71,000 3,387,992 Ocean Park Bank 147,300 23,060 2,410,792 Sausalito—Bank of Sausalito 60,000 12,000 763,483 Turlock—Commercial Bank of Turlock 75,000 37,000 1,235,600 IDAHO. Arco—Butte County Bank 25,000 107,468 Ashton—Security State Bank 50,000 25,000 444,896 Bellevue—Bellevue State Bank 30,000 16,443 267,435 Blackfoot—Blackfoot City Bank 50,000 10,000 608,632 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

250 ANNUAL REPORT FEDERAL RESERVE BOARD. Capital. Surplus. Total resources. DISTRICT NO. 12—Continued. IDAHO—continued. Blackfoot—D. W. Standrod & Co $100,000 $85,000 $1,995,665 Burley—Burley State Bank , 89,400 17,880 958,242 Castleford—Bank of Castleford 25,000 1,250 62,160 Cambridge—Peoples Bank 40,000 6,000 326,320 Drammond—First State Bank 25,000 66,294 Eagle—Bank of Eagle 25,000 2,100 275,078 Emmett—Bank of Emmett 60,000 25,000 879,458 Filer—Farmers & Merchants Bank 25, 000 2,500 215,240 Genesee—Genesee Exchange Bank 25, 000 12,500 63S, 682 Gooding—Citizens State Bank 25, 000 15, 000 398,832 Grangeville—Bank of Camas Prairie 50, 000 50,000 729, 438 Hansen—Bank of Hansen 25,000 5,000 232,931 Homedale—First Bank of Homedale 25,000 140,642 Idaho Falls- Anderson Brothers Bank 100,000 120,000 2,650,779 Farmers & Merchants Bank 150,000 30,000 1,501,721 Kimberly—Bank of Kimberly 35, 000 13, 500 368,631 Kuna—The Kuna State Bank 25, 000 1,250 153,318 Malad City—J. N. Ireland & Co., Bankers 40, 000 12, 500 612,913 May—Union Central Bank 30, 000 2,500 111, 082 Menan—J efferson State Bank 25, 000 2,500 191,872 Meridian—Meridian State Bank 25, 000 3,000 240,316 Mont our—Farmers & Stockgrowers Bank 25, 000 850 156,465 Murtaugh—Bank of Murtaugh 25, 000 3.500 123,395 Nezperce—Union State Bank 50, 000 10,' 000 394,085 Oakley—Farmers Commercial & Savings Bank. 25, 000 15,000 251, 687 Orofino—Bank of Orofmo 25,000 5,000 499,906 Picabo—Picabo State Bank 25, 000 5,000 206,755 Pocatello—Citizens Bank 300, 000 60,000 1,580,042 Potlatch— Potlatch State Bank 50, 000 10,000 1,276,877 Kexburg— Farmers & Merchants Bank 50, 000 10,000 465,663 V R S S S T T T u t t e e w u i a . c g t t p r o t A i o a — o n e n n r n r r i — F t C T t C a — h a — h i i o V l t t e l F y y n s i F — c a — y — F a t r — a o r m F F T m r r r m S i e w e e r S r t s e m r . i s t t s n r a A o s & S t S F e n n B t t t a a M t a B a l h t C t l e n a e e s o o k n r B n B B c u k y a h n a a n a t n n B y k n k k a t B s n & k a B n a & T k n r k T u r s u t s C t o Co... 1 3 3 2 2 3 2 0 2 5 0 5 5 0 5 0 5 , , , , , , , , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 1 7 0 5 2 0 5 8 , , , , , , 0 0 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2, 3 5 4 1 1 1 1 1 1 9 0 9 4 0 1 7 7 3 8 6 8 2 5 4 , , , , , , , , 5 2 6 0 0 2 9 8 2 9 7 6 9 7 5 3 3 7 3 1 1 2 2 8 OREGON. Athena—Athena State Bank 25,000 74,046 Aurora—Aurora State Bank 25,000 15,000 399,372 Central Point—Central Point State Bank 25, 000 5,000 356, 941 Dallas—Dallas City Bank 50, 000 15,000 649,139 Enterprise—Enterprise State Bank 50, 000 20,000 490,323 Gresham—First State Bank 30, 000 25,000 700, 807 Haines—Bank of Haines 25, 000 5,000 283,232 Helix—Bank of Helix 50, 000 12,000 269,303 Hood River—Butler Banking Co 100,000 30,000 1/476,148 Joseph—First Bank of Joseph 50, 000 12, 500 327; 774 Lakeview—Lake County Loan <& Savings Bank. 40, 000 10,000 352, 674 Madras—Madras State Bank 25,000 18, 000 297,104 Marshfield— Bank of Southwestern Oregon 100, 000 16, 000 1, 044, 983 Scandinavian American Bank 25, 000 7,500 451, 510 Medford—Jackson County Bank 100, 000 20, 000 1, 296, 464 Moro—Farmers State Bank 25, 000 5,000 275, 445 Myrtle Point—Bank of Myrtle Point 50, 000 15, 000 490, 663 North Portland—Live Stock State Bank 100, 000 25, 000 1,337, 175 Oregon City—Bank of Oregon City 100, 000 50,000 2. 068, 467 Pendleton—The Inland-Empire Bank 250, 000 1, 226, 399 Pilot Rock—First Bank of Pilot Rock 30,000 30,000 | 463, 324 Portland— Hibernia Commercial & Savings Bank 200, 000 100, 000 ! 5, 932, 836 Ladd & Tilton Bank 1,000, 000 1,000, 000 27, 368, 239 Reedsport—First Bank of Reedsport 25, 000 1,250 171, 907 The Dalles—Wasco County Bank 100, 000 5,371 397, 187 Tillamook—Tillamook County Bank 40, 000 10,000 759, 755 Woodburn—The Bank of Woodburn 50,000 15,000 839, 069 Bingham Canyon—Bingham State Bank. 50,000 1,000 373, 950 Brigham City—Security Savings Bank... 50,000 20,000 758,665 Cedar City- Bank of Southern Utah 75, 000 70,000 j 671,100 Iron Commercial & Savings Bank 50,000 5,000 ! 297, 283 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 251 Capital. Surplus. res T o o u t r a c l es. DISTRICT NO. 12—Continued. XJTAR—continued. Delta—Delta State Bank $25,000 $10, 000 $489, 414 Duchesne—Bank of Duehesne 25, 000 3,500 174, 809 Ephraim—Bank of Ephraim 50, 000 25, 000 564, 382 Fillmore—Fillmore Commercial & Savings Bank... 50, 000 10, 000 239, 996 Fountain Green—Bank of Fountain Green 25, 000 13, 000 270, 444 Gunnison—Gunnison Valley Bank 50, 000 10, 000 337,155 Helper—Helper State Bank 50, 000 30, 000 593, 714 Kaysville—Barnes Banking Co •50, 000 75, 000 522, 437 Logan- Cache Valley Banking Co 100, 000 25, 000 1,174, 592 Farmers & Merchants Savings Bank 100, 000 18, 000 668,882. Thatcher Bros. Banking Co..' 150, 000 50, 000 2,152, 892 Magna—Magna Banking Co 25, 000 3,000 264, 866 Monticello—Monticello State Bank 50, 000 6, 000 207, 533 Myton—Myton State Bank 38, 311 14, 000 175, 340 Ogden—Ogden Savings Bank 150, 000 150, 000 2, 207, 080 Parowan—Bank of Iron County 35, 000 21, 000 316,187 Payson— Payson Exchange Savings Bank 50, 000 30, 000 778, 492 State Bank of Payson 50, 000 13, 000 . 460, 478 Price— Carbon County Bank 100, 000 10, 000 433,190 Price Commercial & Savings Bank 50, 000 70,000 906,450 Provo— Farmers & Merchants Bank 100, 000 12,000 1, 035,693 Knight Trust & Savings Bank 300, 000 31, 500 2,308, 766 Richfield— James M. Peterson Bank 50, 000 50, 000 767,534 State Bank of Sevier 45, 000 45, 000 708, 727 Salt Lake City- Columbia Trust Co 250, 000 25, 000 1, 339, 020 Deseret Savings Bank • , 500, 000 300, 000 5, 793, 820 McCornick & Co., Bankers 1,000, 000 120,000 12, 993, 221 Tracy Loan & Trust Co , 222, 6G0 126, 250 909,657 Utah Savings & Trust Co 300, 000 29, 644 1, 854, 205 Walker Bros., Bankers 500, 000 100, 000 12,249,485 Spanish Fork—Commercial Bank of Spanish Fork. 50,000 10,000 585,658 Vernal—Bank of Vernal 60,000 15, 000 510, 765 WASHINGTON. Albion—Albion State Bank 25,000 6,000 122,285 Almira— Almira State Bank 50, 000 13,000 474, 253 Farmers State Bank 25,000 6,500 234, 737 Bellingham—Northwestern State Bank 100, 000 80, 000 1, 619, 848 Buena—Buena State Bank 25,000 1,000 204, 723 Centralia—Centralia State Bank 100, 000 11,000 786, 863 Chehalis—Coffman-Dobson Bank & Trust Co 150, 000 100,000 3, 323, 219 Colfax—First Savings & TrustBank of Whitman County- 75, 000 17, 500 487, 667 Davenport—Lincoln County State Bank 50, 000 10,000 463, 489 Ellensburg—The Farmers Bank 100, 000 25,000 1,465, 345 Enumclaw— Peoples State Bank 25,000 7,250 545,354 State Bank of Enumclaw 30, 000 16,000 746, 873 Everett—Bank of Commerce 100, 000 25, 000 1,778,494 Farming ton—Bank of Farmington 25,000 7,500 313, 316 Garfield—First State Bank 50, 000 15,000 487, 813 Goldendale—State Bank of Goldendale 75,000 7,500 564, 319 Hoquiam—Lumbermen's Bank 100,000 25,000 1,135, 035 La Crosse— First State Bank 60,000 40,000 608,217 Security State Bank 30,000 6,405 148, 319 Molson—-Molson State Bank 25,000 10,000 237, 281 Odessa—Farmers & Merchants Bank 25,000 5,000 361,528 Okanogan—Commercial Bank 50,000 10,000 503, 632 Pine City—Pine City State Bank 25,000 1,000 172, 476 Port Townsend—Merchants Bank 75,000 25, 000 1,063, 271 Pullman—Pullman State Bank 37,500 10,000 765, 504 Puyallup— Citizens State Bank 50,000 ! 10,000 963, 823 Puyallup State Bank 50,000 I 1,000 916, 773 Reardan—Farmers State Bank 50,000 I 20,000 618, 400 Renton— Citizens Bank of Renton 25,000 5,000 706,208 Renton State Bank 25, 000 2,500 207, 299 Rockford—Farmers & Merchants Bank 25,000 5,000 291, 393 Rosalia—Bank of Rosalia 25,000 5,000 378, 087 St. John—Farmers State Bank 40,000 8,000 339.85^ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

252 ANNUAL. REPORT FEDERAL RESERVE BOARD. DISTRICT NO. 12—Continued. WASHINGTON—continued. Seattle- Dexter Horton Trust & Savings Bank $400,000 1100, 000 $6,403,816 Guaranty Bank & Trust Co 250,000 49,500 1, 209,574 Scandinavian American Bank 1.000,000 200, 000 18, 596,059 South Bend—Pacific State Bank 100,000 50,000 1,483,298 Spokane— Spokane & Eastern Trust Co 1,000,000 250,000 12, 801, 738 Washington Trust Co 200,000 40, 000 1, 542,281 Sprague—The Farmers State Bank 25,000 3,000 168,151 Stanwood— Bank of Stanwood 25,000 25, 000 680,155 Citizens State Bank 25, 000 2,500 232,456 Tacoma—Puget Sound Bank & Trust Co 300,000 40,000 3,667, 495 Tekoa— Citizens State Bank 25,000 15,000 480,130 Tekoa State Bank 30,000 15,000 | 479, 535 Toppenish— Central Bank of Toppenish 50,000 25,000 754, 541 Traders Bank 25, 000 15, 000 787,758 Uniontown—Farmers State Bank 25,000 3,000 336,728 Walla Walla— The Farmers & Merchants Bank of Walla Walla.. 200,000 40,000 2,017,892 Peoples State Bank 100, 000 50, 000 2,034,670 Wilbur—The State Bank of Wilbur 50, 000 10, 000 550, 675 YaMma—Yakima Valley Bank 100, 000 40, 000 1,990, 272 Total. 50,321,411 22,433,533 869,883,573 Statement showing membership of State banks and trust companies in the Federal Reserve System based upon reports of condition as of Dec. 29, 1920, classified by districts as to number of banks, capital, surplus, and resources. [In thousands of dollars.] District. Capital. Surplus. ! Total resources. No. 1—Boston $35,255 $38, 282 S724, 063 No. 2—New York 175, 368 187, 442 3,929, 629 No. 3—Philadelphia 24, 835 48, 216 382, 301 No. 4—Cleveland 41, 884 69, 596 879,621 No. 5—Richmond 14, 758 9, 523 158, 937 No. 6—Atlanta 25, 050 16, 339 352,480 No. 7—Chicago 98, 331 81, 401 1,774,753 No. 8—St. Louis 27,675 21, 571 386, 546 No. 9—Minneapolis 9,957 3,402 122, 785 No. 10—Kansas City... 8,695 3,308 136, 221 No. 11—Dallas 15,186 5, 924 137, 530 No. 12—San Francisco.. 50, 526 22, 499 841, 928 Total 527,520 ! 507, 503 9,826,794 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 253 Abstract of condition reports of State bank and trust company members of the Federal Reserve System as of Dec. 31, 1919, May 4, June 30, Nov. 15, and Dec. 29, 1920. [In thousands of dollars.] Dec. 31, May 4, June 30, Nov. 15, Dec. 29, 1919—1,181 1920—1,306 1920—1,374 1920—1,449 1920—1,481 banks. banks. banks. banks.1 banks.2 RESOURCES. Loans and discounts 5,249,833 5,508,993 5,682,754 5,713,301 5,640,043 Overdrafts 5,362 6,133 5,695 5,708 Customers' liability on account of 5,702 letters of credit 1,016 1,797 1,933 603 Customers' liability on account of 1,723 acceptances 231,019 235,587 234,758 212,494 Liberty bonds (exclusive of Liberty 230,015 bonds borrowed) 335,752 360,042 360,198 381,453 Other United States bonds (exclusive 339,777 of United States bonds borrowed) 9,851 13,455 11,238 7,598 6,731 United States Victory notes 131,057 103,663 104,451 101,997 105, 774 United States certificates of indebtedness 307,026 249,226 197,263 164,861 135,232 War savings and thrift stamps and Treasury savings certificates actually owned 1,327 1,217 1,052 955 765 Stock of Federal Reserve Bank 25,850 28,282 29,198 30,471 30,887 Other bonds, stocks, etc. (exclusive of securities borrowed) 1,300,952 1,292,924 1,273,900 1,283,226 1,340,247 Bankin g house 132,434 142,296 148,988 157,676 161, 070 Furniture and fixtures 11,164 12, 845 13,522 18,051 16, 882 Other real estate owned 25,748 26, 859 24,117 26,520 26, 957 Lawful reserve with Federal Reserve Bank 591,702 599,429 593,415 609,443 578,688 Gold coin and certificates 17,692 17,426 20,322 15,306 13, 858 All other cash in vault 165,756 148,040 152,034 148,412 Items with Federal Reserve Bank in 170,682 process of collection 122,640 125,337 133,007 143.515 Due from banks, bankers, and trust 122,213 companies 676,704 436,855 431,583 401,221 Exchanges for clearing house, also 381,113 checks on other banks in same place.. 446,317 246,512 384,338 398.516 289,333 Outside checks and other cash items... 64,653 37,916 47,204 44,426 34, 368 Approximate interest earned but not collected 24,257 20,406 25,738 24,343 26,219 Other assets 35,595 129, 439 129,159 148,787 145, 474 Total. 9,913,707 9,718,337 10,006,842 10,041,209 9,826, 794 LIABILITIES. Capital stock paid in 436,324 481,536 493,628 517,980 527, 520 Surplus fund : 454,877 486,840 494,568 502,961 507,503 Undivided profits, less expenses and taxes paid 115,300 151,142 150,043 175,918 183,445 Approximate interest and discount collected but not earned 15,803 17,746 19,632 21,898 22,406 Amount reserved for taxes accrued 15,681 18, 863 21,346 23,617 25,118 Amount reserved for interest accrued.. 10,592 19,643 11,104 23,453 21, 734 Due to Federal Reserve Bank 1,324 2,508 5,521 4,316 4,053 Due to banks, bankers, and trust companies 755,303 604,365 636,346 577,575 534,767 Certified and cashiers' or treasurers' checks outstanding 303,064 182,685 218,108 268,840 210, 728 Demand deposits 4,834, 830 4,713. 460 4, 851, 597 4,685,330 4,519, 602 Time deposits 2,165, 786 2,337; 635 2,426,035 2,523, 695 2, 556, 818 United States deposits 201,710 74,381 106,166 Bills payable with Federal Reserve 76, 521 m, 498 Bank 309,197 280,506 267,245 Bills payable other than with Federal 294,097 245,972 Reserve Bank 14,311 58,048 56,665 Cash letters of credit and travelers' 35,216 39,986 checks outstanding 8,087 9,374 17,756 12,002 12,339 A O c th c e ep r t l a ia n b ce il s ities 2 3 3 8 3 , , 1 3 3 7 9 9 2 5 3 1 5 , , 2 4 8 2 4 2 2 4 4 6 2 , , 3 3 3 6 3 9 2 4 4 9 1 , , 2 4 7 1 6 3 21 5 8 2 , , 2 3 9 9 2 3 Total. 9,913,707 9,718,337 10,006, 842 10,041,209 9, 826, 794 Liability for rediscounts with Federal Reserve Bank 318,261 326,108 327,513 436,092 433, 514 Liability for rediscounts with other banks 8,028 10,765 16,763 28,690 29,663 Ratio of reserve with Federal Reserve Bank to net deposit liability (per cent) 10.4 10.5 10.1 10.7 10.4 1 One bank not reporting. 2 Three banks not reporting. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 ANNUAL REPORT FEDERAL RESERVE BOARD. Abstract of condition reports of all member banks (both national and State) of the Federal Reserve System as of Dec. 31, 1919, May 4, June 30, Nov. 15, and Dec. 29, 1920. [In thousands of dollars.] Dec. 31, May 4, June 30, Nov. 15, Dec. 29, 1919— 1920— 1920— 1920— 1920— 9,066 banks.9,291 banks. ',399 banks.9,567 banks.19,606banks.2 RESOURCES. Loans and discounts 17,032,747 17,794,164 18,076,141 18,022,660 17,731,760 Overdrafts 22,403 22,080 22,560 24,887 22,676 Customers'liability on account of letters of credit 8,706 7,482 11,016 Customers' liability on account of accept- I ances I 624,571 655,405 651,997 619,377 566,678 United States Governmentseeuritiesowned41 3,506, 426 3,081,156 2,941,655 2,786,109 2, 759, 428 Stock of Federal Reserve Bank i 87, 434 92, 435 94, 485 98, 744 99, 392 Other bonds, stocks, and securities5 j 3,224,007 3,175. 951 3,124, 897 3,168,147 3,261, 556 Banking house ! 432, 780 453, 922 464, 634 489, 770 497, 882: Furniture and fixtures 50,405 55, 808 57, 763 67,279 67, 685, Other real estate owned 69,177 70, 819 69,066 72, 420 73, 901 Lawful reserve with Federal Reserve Bank. 1,903, 814 1,865,638 1,838,648 1,827,450 1, 763, 424 Cash in vault Items with Federal Reserve Bankin process 691,173 620,897 621, 817 611,067 677,925 of collection Due from banks, bankers, and trust com- 579,235 580,063 615,116 674,005 544,815 panies Exchanges for clearing house, also checks 2,518,709 1,874,173 1,824,041 1,774,326 1,576,622 on other banks in same place 1,509,006 867,427 1,228,799 1,272,584 963,881 Outside checks and other cash items 147,276 102,996 126,269 120,864 91, 222 Redemption fund and due from United States Treasurer 41,489 38,187 38,505 39,433 38,350 Approximate interest earned but not collected 69,354 66,070 73,728 72,576 77,449 Other assets 97,544 323,899 313,164 371, 735 369, 552 Total 32,616,256 31,748,572 32,194,301 32,113,433 31,184,198 LIABILITIES. Capii-al stock paid in 1,593,833 1,695,555 1,717,014 1,787,160 1, 799,061 Surplus fund 1,375, 727 1,446,915 1,480,456 1,518,953 1, 526,901 Undivided profits, less expenses and taxes 491,872 588,697 561,427 659,515 678, 933 Approximate interest and discount collected but not earned 76,576 88,786 93,174 96,450 95, 472 Amount reserved for taxes accrued 55, 808 62, 560 67,689 74, 683 71, 634 Amount reserved for interest accrued 24, 843 39, 404 26, 474 45, 603 43, 678 Due to Federal Reserve Bank 14,189 21,547 24,682 28,402 21, 953 Due to banks, bankers, and trust companies 4,091,400 3,524,359 3,461,016 3,201, 791 3,062, 304 Certified and cashiers' or treasurers' checks outstanding 90(3,515 518, r,17 ' 648,361 714,709 593,389 Demand deposits 15,156,169 14,833, 215 15,067,172 14,779,480 14,019, 901 Time deposits 5,304, 793 5,747, 532 5,910,926 6,144, 064 6,187, 921 United States deposits 648, 555 190,168 260,179 219,831 316,191 Bills payable with Federal Reserve Bank.. 119O?T1 1,246,721 1,122,067 1,063,748 1,026, 492 Bills payable other than with Federal Reserve Bank 71,488 133,497 155,443 212,232 208,440 Cash letters of credit and travelers' checks outstanding 17,173 36,109 28,896 18,365 17, 901 Acceptances „ 641,018 673,852 673,565 647,801 593, 708 National-bank notes outstanding 685,237 687,931 687,653 697,391 693, 415 United States Government securities borrowed 182,665 123,143 130,860 131,209 140, 451 Other bonds and securities borrowed 5,578 6,119 4,582 4,844 4,377 Other liabilities 83, 945 72,665 67, 202 82, 076 Total. 32,616,256 31,748,572 32,194,301 32,113,433 31,184,198 Liability for rediscounts, including those with Federal Reserve Bank e 1,299,788 1,551,047 1,558,792 1,917,989 1,894, 818 Ratio of reserve with Federal Reserve Bank to net deposit liability (per cent) 10.3 10.1 9.9 10.1 10.0 1 One bank not reporting. 2 Three banks not reporting. 3 Included with loans and discounts. 4 Includes United States Government securities borrowed by National Banks, s Includes other bonds and securities borrowed by National Banks. 6 Includes acceptances of other banks and foreign bills of exchange sold with indorsement or other guaranty by National Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIDUCIARY POWERS GRANTED. 255 FIDUCIARY POWERS GRANTED TO NATIONAL BANKS. The following is a complete list of national banks which have been granted fiduciary powers to December 31, 1920. For a description of the powers granted see footnotes on page 266. 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 bv an asterisk. DISTRICT NO. 1. DISTRICT NO. 1—Continued. CONNECTICUT. MASSACHUSETTS—continued. (See also District No. 2.) Boston Webster & Atlas National Ansonia Ansonia National Bank.1 Brockton Br B o a c n kt k o . n 1 National Bank.1 H Br a i r s t t f o o l r d C B o ri l s o t n o i l a N l N at a i t o i n o a n l a l B B an a k n . k 2 .33 Edgartown H Ed o g m a e rt o N w at n io N na a l ti o B n a a n l k B .3 ank.4 First National Bank.i Fall I? iver Massosoit Pocasset National Hartford-Aetna National Bank.1 Bank.3* Metacomet National Bank.1 Phoenix National Bank.* Fitchburg Safety Fund National Bank.i Middletown Middletown National Bank.3 Foxboro Foxboro National Bank.1 Naugatuck Naugatuck National Bank.3 Gardner First National Bank.1 New Britain New Britain National Bank.1 Gloucester Cape Ann National Bank.1 New Haven First National Bank.2 Great Barrington National Mahaiwe Bank.1 Merchants National Bank.2 Haverhill Essex National Bank.* National Tradesmens Bank.3 First National Bank.3 Second National Bank.1 Merrimack National Bank.3 The New Haven Bank, N. Holyoke City National Bank.3 B. A.1 Holyoke National Bank.3 New London National Bank of Commerce.25 Lawrence Bay State National Bank.1 New London City National L eominster Lebminster National Bank.3 Bank.« Merchants National Bank.10 N orwich Thames National Bank.i Lowell Old Lowell National Bank." Torrington Torrington National Bank.10 Lynn Central National Bank.2 Wallingford First National Bank.1 Manufacturers N a t i o n al Waterbury Citizens National Bank.11 Bank.1 Manufacturers National National City Bank.is Bank.1 Marlboro First National Bank.3 Waterbury National Bank.1 Peoples National Bank of Marlborough.1 MAINE. Methuen National Bank of Metheun.2 L N B B B B W P e o e a a a o a w l n r t r r f h t t w g a e i l H s a s o r a t t v n a r o y r i d n l b l e o r T P B C F N M C F F o i i i i a a i o B c r a r r t r n t r s y s o s n t h a w a t t t l n u n a l N N N i a N N f k n c N a y a . a d a a a c 1 t N a t t t t t i 2 N i i u i i t o N o o o a o i r a o n t n n n n e a i t n a r a o i a a t a o i l s a l l l l n o n l B a B n B B B a B l a a a a l a a n l B a n n n n N B k n k B k k a k . a k . . a n . . 2 2 a 1 1 n 3 . k 2 t 2 1 n k . i k . 3 o 2 ." nal N N P N N P P R S S a i r l o e e o o e t y o l u t a w w e r r s m v d t t t m f h h h i b i l n o B n e b a u c A u l r m g e r d e i t y d d d h t p f p o a g o t o w m o e r r d n n t s A P M M P N S F M F F N l i o i i g i o t y e r e o r e r t u r s s r r r s s m r r i t t c c t t c f t t c h h i h h h h o u N e N N b a a a a A u l l r n n m t a d n a a t i u d t t t h t t d t s i s i r i p s a N g o o o a m t N N N N n e n l n o a a a a s a n t N a a N a i l l l t t t N o t N i a i i a i B B o o n B o o t t a a i n i n a n n a a t o a t o i a l a i a n n a n n o n o l l l k l k B k a n a n B B . B . B l . l a a a 3 1 1 a l B B a n a l a B n n n n k B a a k a k k k . n n a 3 n . . . . k k n 3 1 2 1 k . k . 2 1 . . 1 1 Springfield Chapin National Bank.1 MASSACHUSETTS. Chicopee National Bank.1 Adams First National Bank.2 Springfield National Bank.2 Graylock National Bank.11 The Third National Bank of Amherst First National Bank.1 Springfield.1 Beverly Beverly National Bank.3 Tisbury Martha's Vineyard National Boston Boylston National Bank.1 Bank.2 Citizens National Bank.1 Turner Falls Crocker National Bank.11 First National Bank.11 Uxbridge Blackstone National Bank.3 Fourth-Atlantic National Wareham National Bank of Wareham.3 Bank.1 Water town Union Market NationalBank.3 Merchants National Bank.1 Webster First National Bank.3 National Shawmut Bank.1 Woburn Woburn National Bank.14 National Union Bank.8 Worcester Mechanics National Bank.3 Peoples National Bank of Merchants National Bank.1 Roxbury.11 Yarmouthport The First National Bank of- Second National Bank.1 Yarmouth.1 For footnotes see page 266. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

256 ANNUAL REPORT FEDERAL RESERVE BOARD. DISTRICT NO. 1—continued. DISTRICT NO. 2—Continued. NEW HAMPSHIRE. NEW JERSEY—continued. Berlin City National Bank.e Long Branch Citizens National Bank.i C Co la n r c e o m rd o nt C Fi la rs re t m N o a n ti t o N na a l t i B on an al k B .1 ank.3 M Mo o r n r t i c s l t a o i w r 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 . . 1 1 Mechanics National Bank.1' National Iron Bank.1 National State Capital Bank.15 Newark Merchants & Manufacturers Dover Merchants National Bank.< National Bank.3 Straff ord National Bank.3 National Newark & Essex Keene Ashuelot National Bank.15 Banking Co.1 Keene National Bank.3 National State Bank.1 Manchester Amoskeae; National Bank.13 North Ward National Bank.3 Manchester National Bank.« New Brunswick National Bank of New Merchants National Bank.15 Jersey.1 Nashua Indian Head National Bank.4 The Peoples National Bank Second National Bank.15 of New Brunswick.1 Newport Citizens National Bank.15 Orange Orange National Bank.2 Wolfeboro Wolfeboro National Bank.15 Second National Bank.1 Passaic Passaic National Bank.1 RHODE ISLAND. Paterson P F a ir t s e t r s N on a t N io a n t a io l n B a a l n k B .1 a * n * k.1 Newport Aquidneck National Bank.3 Perth Amboy S C e it c y o n N d a N tio a n ti a o l n B al a B nk a . n 1 k.1 First National Bank.1 VERMONT. Phillipsburg Phillipsburg National Bank.* Barre Peoples National Bank.1 Plainfield City National Bank.3 B B e e n ll n ow in s g t F o a n l ls C N o F a u t a i n l o l t n s y . a 4 N l a B tio an n k al B o a f n k B .1 ellows Red Bank S T e h B c e o a n n B d k r N o o f a a d t R i o e n S d a tr l B e B a e n t a k n N . k 1 . a 1 tional Fi n rs in t g N to a n ti . o 1 nal Bank of Ben- Ridgewood Th o e f R C i i d ti g z e e w ns o o N d. a 1 tional Bank B B r r a a n tt d le o b n o ro V P F e i e r o r s m p t le o N s n a t N t i N o a n t a i a t o i l n o B n al a a l B n B k a . n a 3 n k k .1 .2 Rutherford T R h u R e t i h d e F g r i e f r o w s r t o d o N N d a . a 1 t t i i o o n n a a l l B B a a n n k k .3 of M Po o u n l t t p n e e l y ie r C Fi it r i s z t e n N s a N tio a n ti a o l n B al a B nk a . n 3 k.3 S S S o o o m u u t t e h h r v A R il i m l v e e b r o y F S F e i i r r c s s o t t n N N d a a N t t i i a o o t n n io a a n l l a B B l a a B n n a k k n . . k 1 1 .3 Hutland Th R e u B tl a a x n t d e . r 5 National Bank of Sussex Farmers National Bank.3, Springfield First National Bank.3 St. Albans Welden National Bank.3 NEW YORK. Windsor State National Bank.* Adams Farmers National Bank.1 Albany First National Bank.fi DISTRICT NO. 2. National Commercial Bank & Trust Co.2 CONNECTICUT. New York State National Bank.7 (See also District No. 1.) Amsterdam First National Bank.1 Bridgeport C C o it n y n N ec a t t ic io u n t a N l B at a io n n k a .1 l Bank.1 Auburn T C h a B y e a u n g N k a . 2 ati C o o n un a t l y Ba N n a k ti on o a f l First-Bridgeport National Auburn,1 D N G a o re n r e w b n u a w l r k i y c h C D N G i a B r a t e y n t a e i b o n n N u k n w a r . a y i * t c l i o h B N n a N a a n t l a i k o B t i n o o a a f n n l a k N B l . o 1 B a r n w a k n a . k 1 lk .1 .3 B C Bu a ro n ff o a a k n lo l d y a n ig ua N F C M i a a N r a s n s n s a a t a u t n N i u f o d a a n a N c t i a t i g u a o l u t r n i B e a o a r a n s l N n a B a k l & t a . i B 1 n o a k n T n . a 1 k l r . a B 1 d an e k r . s 1 • . R S S t i o a d u m g t e h f r o i N r e d l o d r walk F C F i i i r r t s y s 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 i 1 Canton S F t i t . r i s o t n L N a a l a w B ti r o e a n n n a c k l e . " B C an o k u . n 1 ty Na- Carthage Carthage National Bank.1 NEW JERSEY. Catskill Catskill National Bank.2 Clayton National Exchange Bank.5 (See also District No. 3.) Cooperstown First National Bank.1 Second National Bank.2 Arlington The First National Bank of Corning First National Bank & Trust Arlington.1 Co. of Corning.2 Asbury Park Merchants National Bank.1 Cuba Cuba National Bank.1 Atlantic Highlands..Atlantic Highlands National Dunkirk Lake Shore National Bank.1 Bank.4 Merchants National Bank.1 Belvidere Belvidere National Bank.2 Edwards Edwards National Bank.s Bloomfield Blodmfield National Bank.3 Elmira Merchants National Bank.10 Boonton Boonton National Bank.1 Second National Bank.1 Boundbrook First National Bank.3 Far Rockaway National Bank of Far Rocka- Cranbury First National Bank.a way.5 Dover National Union Bank.3 Fredonia National Bank of Fredonia.1 Elizabeth National State Bank.11 Freeport Citizens National Bank of The Peoples National Bank Freeport.1 of Elizabeth.1 Fulton Citizens National Bank of Frenchtown Union National Bank.1* Fulton.1 Garfield The First National Bank of Geneva Geneva National Bank.5 Garfield.1 Glens Falls Merchants National Bank.2 Hoboken First National Bank.3 Gloversville City National Bank.1 The Second National Bank of Fulton County National Hoboken.l Bank.1 Jersey City First National Bank.1 Goshen , National Bank of Orange Lambertville Lambertville National Bank. County.1 For footnotes see page 266. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIDUCIARY POWERS GRANTED. 257 DISTRICT NO. 2—Continued. DISTRICT NO. 2—Continued. NEW YORK—continued. NEW YORK—continued. Granville Farmers National Bank.5 Poughkeepsie Fallkill National Bank.1 Washington County National Farmers & Manufacturers Bank.5 National Bank.1 Hempstead First National Bank.* Richfield Springs First National Bank.5 Herkimer Herkimer N ational Bank.2 Riverhead Suffolk County National Hoosick Falls Peoples National Bank.2 Bank.5 Hornell Citizens National Bank.1 Rome Farmers National Bank.1 Hudson Farmers National Bank.1 Saratoga Springs First National Bank.5 First National Bank.1 Southampton First National Bank.2 Hudson Falls The Peoples National Bank Stapleton Richmond Borough National of Hudson Falls.i Bank.5 The Sandy Hill National Sufiern SufTern National Bank.1 Bank of Hudson Falls.1 Tarrytown Tarrytown National Bank.7 Ilion Ilion National Bank.1 Troy The 'Manufacturers National Ithaca First N ational Bank.1 Bank of Troy .i Jamestown American National Bank of Union National Bank.1 Jamestown.1 Utica Oneida National Bank.1 National Chautauqua County Utica City National Bank.1 Bank.2 Vernon National Bank of Vernon.18 Kingston Rondout National Bank.1 Walton First National Bank.1 The First National Bank of Warsaw The Wyoming County Na- Rondout.1 tional Bank of Warsaw.1 Lackawanna Lackawanna National Bank.1 Watertown Jefferson County National Little Falls Little Falls National Bank.1 Bank.1 Lockport National Exchange Bank.1 Watertown National Bank.2 Niagara County National Westfield National Bank of Westlield.6 Bank.1 Yonkers First National Bank of Yonk- Lowville The Black River National ers.1 Bank.1 Middletown Merchants National Bank.1 DISTRICT NO. 3. Mineola First National Bank.5 Morristown Frontier National Bank.5 DELAWARE. Mount Vernon First National Bank.1 Newburgh Highland National Bank.1 Laurel Peoples National Bank.2 New York City American Exchange National Milford. First National Bank.1 Bank.1 Seaford First National Bank.a Atlantic National Bank.1 Wilmington Central National Bank of Wil- Bank of New York NBA.1 mington.1 Bronx National Bank.5 Chase National Bank.1 NEW JERSEY. Chatham & Phenix National Bank.1 (See also District No. 2.) C C I F G H H G L r h i o i v a o a a N r b a e r n r i t s f e e h n l m r t o i r i w e a g & v m t N i l m y c d e N I Y a a a r r N n l t N a N o o i N t o a n r N a a N i k a n t o t t i N t a a . i a i n o 1 i o o t t l o a n a i i n n o o l B n a t a a i n n l a B o a l l a l a B n n a B B l l B k a n a a a B l . n k a B 1 n n a n B k . k k a 1 n k . a . n . 1 k 1 . 1 n k 2 . k 1 . o 1 f A B C C El a a u t m l m p r a l e e n i d n r t M e i g n c a t o C y n i ty A T T N M M U F h h i t n a C e e r l e e o t i a s c r a i o f t c h n o m n F C h a A t N n i n a d i h N a c t r a n i e e l l c s t a a C t n l i t s S s s t n o . i e i t 1 N t N n t o N a a y i a n c t a a a e l N a t t N t C i i l i B B o a o o a i B t n a n n a t t i y i a n o n a a a o l . n k l l n k 1 n B k . a B . a B 1 1 l . l a a 4 a B n n n B k a k k n . . a x 5 k n o . k f 3 M M B e e c r a c h n h a k a n . n i 2 c t s s & N a M tio et n a a ls l B N a a n ti k o . n 1 al H G a la d s d s o b n o f r i o e ld H Fi a b r d s o d t r o o N n .1 a fi t e io ld n a N l B at a io n n k a o l f B G a l n a k ss .1 - N N N o y o r a r w t c h k i c T h o nawanda... N N N S N N S C N e t h a a a a a y N a a e t t t t t a t b i i i i i e n e c o o o o o o w a k n n n n n N a n a r a a a a N Y g a d l l l l l o t a o B C P B i N A o t r N a i i a a k n t a o m r n n y a . a t k n 1 k t i k e l a i o B r o B B l i o n o a c n a f B f a a a n s n l n C N n a k 1 k B k n o . o . 1 B . m k a 1 B r 1 w n . a a m 1 k n i n c . k e k 1 h r . c 2 .1 e o . f 2 M P T M S Sw a r r e e i l e n e e d r n c d m f c t o h e e o r s a t n d b o n o n tv r o il le M B F T S F S B a i w i r h u M B e r r o l e e r s c s e a a l t t h m e d i d n F r a n e N N c k n s N g i S h a b r a o i t t c s a a t t o o f r i t i s M n t r e n o o i o t e N o n n N v e t n C a a N i a d a l N a l l t l o f t a l i e i o B B a u o t o B . r i t 1 n n a a n o d i a t n o a n a n . y n 1 l k n l k a k B . a . l 3 B i N 1 l n a B a B a g n a n t k a C i n k o n . k o 1 n k . o . a 1 1 . f 3 l Ogdensburg N b at u i r o g n . a 2 l Bank of Ogdens- V W e o n o t d n b o u r r C y i ty F V i e r n st t n N o a r t C io i n ty a l N B at a i n o k n . a 1 l Bank.1 Olean Th o e f E O x l c e h a a n n .1 g ' e National Bank Woodstown W o o f o d W st o o o w d n s tow N n a . t 1 ional Bank Oneida Oneida Valley National Oneonta Ci B tiz a e n n k s . 1 National Bank.1 PENNSYLVANIA. Wilber National Bank.i (See also District No. 4.) Oswego Second National Bank.1 Ovid First National Bank.* Allentown Allentown National Bank.1 Peekskill Peekskill National Bank.1 Merchants National Bank.2 Westchester County National Ambler First National Bank of Bank.i Ambler.1 Plattsburg Plattsburg National Bank & Annville Annville National Bank.3 Trust Co.1 Atglen Atglen National Bank.4 Port Chester First National Bank.i Belleville Belleville National Bank.* Port Jervis First National Bank.1 Bethlehem Bethlehem National Bank.i National Bank of Port Jervis.1 Leliigh Valley National Bank.2 For footnotes see page 266. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

258 ANNUAL REPORT FEDERAL RESERVE BOARD. DISTRICT NO. 3—Continued. DISTRICT NO. 3—Continued. PENNSYLVANI A—continued. PENNSYLVANIA—continued. Bloomsburg Bloomsburg National Bank.1 Stroudsburg First National Bank.3 Blossburg Miners National Bank.3 Sunbury First National Bank.1 Boyertown The National Bank of Boyer- Tamaqua Tamaqua National Bank.1 town.1 Tioga Grange National Bank.3 Catasauqua National Bank of Cata- Topton National Bank of Topton.3 sauqua.1 Towanda Citizens National Bank.l Clearfield Clearfield National Bank.1 Tyrone Farmers & Merchants Na- County National Bank.1 tional Bank of Tyrone.1 Danville First National Bank.4 West Chester First National Bank.l DuBois Deposit National Bank.1 National Bank of Chester DuBois National Bank.3 County.1 Emaus Emaus National Bank.1 West Grove NationalBank of West Grove.3 Emporium First National Bank.x Wilkes-Barre Second National Bank.1 Ephrata The Ephrata National Bank.1 Wyoming National Bank.1 Farmers National Bank.4 Williamsport First National Bank.1 Greencastle First National Bank.1 The Lycoming National Harrisburg Merchants National Bank.3 Bank.1 Hazleton The First National Bank of West Branch National Bank.3 Hazleton.1 Williamsport NationalBank.1 Hazleton National Bank.3 Wrightsviile First National Bank.1 Huntingdon First National Bank.1 York First National Bank of York.1 Union National Bank.2 Industrial National Bank of Jenkintown The Jenkintown National West York.3 Bank.^ Western National Bank.1 Johnstown First National Bank.2 Lancaster Conestoga National Bank.4 Fulton National Bank.1 DISTRICT NO. 4. Lancaster County National Bank.1 KENTUCKY. Lansdale Th L e a n F s i d r a st le . N 1 ational Bank of (See also District No. 8.) L L M M M L e o i a a a t b c i h n r t a k i z a h e n n e H t o t o i a n m a y v C en it y „. . F T F E U K a i h x n L L e r r c e s y i m e o o h t s b c C n a e t a k o n o r n n N s g u H N o e n e N a n a a t t N N y t a i v . i o l t o e a a i N n n o n t t a i i . n a a o o l 1 t l a n n i B l o a a a n l B l B n a B a B k l a n a a . B n k 2 n n k a . k k 3 n . . 1 k 3 o o f f B N A M Pa r e s o o r h w u i o l s a n p k n o t s d v r S t i t l e le rl ing T N T A F F M h r i i e m r a r e o w s s d e u t t A p e r n N i N r o s c t s S r h a a a t l t n N t t a e i i N o n o r a N l n a n d t i i n a t a a o i N t g l l o i n N o a B n B a n t a a a l i a a o B l t n n i l n B o a k k B a n n a . . l 3 1 a a n k B l n k . B 1 k a . 9 1 a n . 9 1 n k 9 k .1 . 9 3 M M M a o o y u u t n n o t t w C J n o a y rm el M T U U h n M n a e i y i o o o to n n F u w n i N r N t n s a t J a N t o t i N i y o a o . n t a n 1 i a t o a i l o l n B n a M a l a l n B o k B a u . n 1 n a k t n . k 3 J o o y f P W S i o n i m l e li v e a r i m s ll e e s t burg B T Fi e h o v r l f i e s l l t S l F e N N o a .1 m a r a m t t e i i o r o e s n n r e s a a t 7 . l l 1 N 9 B B a a a t n n io k k n . 3 a o l f B P a in n e k - Bank.1 Mountville Mountville National Bank.3 OHIO. N N M N N P O a e e x a a y t w w n z f e t o a t o r v i r r s H n c d i e t l o o l t o e h k w l l e a n n d ...F N N M F N F i i i e a r a r y r s w z t s s e i t a t t o r r H s N n N N e t a o t o a a a h l w l t t t l i i i B a o N o n o n n a n n a d N n a a a t i l k l l N a o B B B t n a o io t a a a a f i l n n o n n O a n k B k k l x a . . . a 3 3 3 l f B n o B a k rd a n .1 . n k 1 k .3 .33 A A A B B u e k s th h l r c l o e t y a a n n i r b r s u e u s l a N F N B F F i i i a a a r r r s n t t s s i t i t k t o - o S n N N n o e a a a f a c l l t t o A B C i i n o o t a i d n n h t n y a a e N k l l n B a B B s o a t , f a a i n o N A n n k n k k . . s 2 a . . h B o 2 2 l t 0 0 . B a b A a u n . l k 1 a 1 . . 2 1 ^ 1 P P e h n il a A d r e g lp y h l ia T Fi h r e st B N r a o t a io d n a S l t B re a e n t k . N 3 ational Canton Th C e a n C to it n y .1 5 National Bank of Bank of Philadelphia.10 First National Bank.s Corn Exchange National Cadiz The Fourth National Bank of Bank.1 Cadiz.11 Eighth National Bank.3 Cincinnati Atlas National Bank.20 Fourth Street National Bank.& Citizens National Bank.11 National Bank of German- Fifth-Third National Bank.20 town.2 First NationalBank.11 Ninth National Bank.1 Second National Bank.11 Penn National Bank.1 Cleveland Brotherhood of Locomotive Philadelphia National Bank.1 Engineers Cooperative Na- Quaker City National Bank.1 tionalBank of Cleveland.1 Southwark National Bank.2 The Central National Bank Textile National Bank.1 Savings & Trust Co.11 Uuion National Bank.2 National City Bank.11 Philipsburg Moshannon National Bank.1 Northern National Bank of Pittston First National Bank.1 Cleveland.11 PortAllegany The First National Bank of Union Commerce National Port Allegany.1 Bank.11 Pottstown National Bank of Pottstown.1 Columbus City National Bank.1* National Iron Bank.1 Commercial National Bank.5 Reading Reading National Bank.1 Huntington National Bank.15 Penn National Bank.3 The Ohio NationalBank.11 Red Lion Red Lion First National Coshocton Commercial National -Bank.20' Bank.1 Dayton Merchants National Bank.20 Scranton Third National Bank.1 Winters National Bank.20 Shickshinny The First National Bank of Defiance First National Bank.20 Shickshinny." Merchants NationalBank.20 Spring City National Bank of Spring Fostoria Union National Bank.11 City.i Galion Citizens National Bank.20 For footnotes see page 266. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIDUCIARY POWERS GRANTED. 259 DISTRICT NO. 4—Continued. DISTRICT NO. 5. OHIO—continued. DISTRICT OF COLUMBIA. Hamilton First National Bank.20 Washington Commercial National Bank.s Hillsboro Merchants National Bank.11 National Bank of Washing- Kent Kent National Bank.11 ton, a Lebanon Lebanon National Bank.20 National Metropolitan Bank.2 Lorain NationalBank of Commerce.11 Mansfield Citizens National Bank.5 MARYLAND. Marietta Central National Bank. 20 Marion F T i h T r e s r t u N N st a a C t t i i o o o . n n o a a f l l B M C a a i n t r y i k o . n 2 B 0 .1 a 1 nk & Baltimore S M e N e c r o a c n t h i d a o n n N ts a a - l M t B io a e n c n h a k a l . B n 1 i a c n s k.2 First M P P a iq a in s u s e a i s l l v o i n ll e C M Pa it e i i n r z c e e h s n a v s n i l t l s N e N N at a a i t o t i i n o o a n n l a a l l B B B a a a n n n k k k . . 2 1 0 o 5 f Cumberland W Se B e c s o a t n l e t d i r m n o N r N a e t a . i 1 t o i n o a n l a l B B an a k n . k 1 of R S S i t a d e v u n e b e n e y n n a v ille N P C S i e i a P q t c i t i o u z i q o n e a u n n d N a a s N . l a N 1 E t a i a t o x i t o n i c o h n a n a l a a n l B l g B a B e n a a B n k n k . a 1 k . n 1 2 . 0 k 6 .11 N H H Fr e a y e w g a d e t e t r W r s s i y t c o i i k n l w l d e n s o r F F S F a i e i t r r i c r s o s m o t t n n e N N a d r l a s a N t t B i i a o o & a t n n i n o a a k n l M l . B B a 3 l e a a c B n n h a k k a n . . n 3 3 k ic .1 s Na- Tiffin Commercial National Bank.11 PocomokeCity Citizens National Bank.1 Tiffin NationalBank.11 Rising Sun NationalBank of Rising Sun.3 Toledo Northern NationalBank.5 Rockville Montgomery County National Troy First National Bank.11 Bank.* Urbana Citizens National Bank.6 Salisbury Salisbury National Bank.1 Wilmington Clinton County National Bank.20 NORTH CAROLINA. Youngstown Commercial National Bank of Youngstown.11 Charlotte Commercial National Bank.1 First National Bank.* Merchants & Farmers Na- Zanesville First NationalBank.20 tionalBank.1 Old Citizens National Bank.11 Union National Bank.1 Elizabeth City First & Citizens National PENNSYLVANIA. Bank.1 Goldsboro Wayne National Bank.1 (See also District No. 3.) High Point Commercial National Bank.3 New Bern NationalBank of New Bern.3 Ellwood City First National Bank.1 Oxford First National Bank.3 Franklin Lambertqn National Bank.1 Greensburg First National Bank.1 SOUTH CAROLINA. Greenville First National Bank.3 Grove City The Grove City National Charleston Atlantic National Bank.1 Bank.1 Commercial National Bank of The First National Bank of Charleston.3 Grove City.1 Peoples National Bank.3 Meadville New First National Bank." Columbia National Loan & Exchange New Brighton Union National Bank of New Bank.1 Brighton.1 Greenville First National Bank.1 New Castle First NationalBank. 1 Peoples National Bank.8 Oakmont.. First NationalBank.6 Lake City Farmers & Merchants Na- Oil City Oil City National Bank.1 tionalBank.3 Pittsburgh Bank of Pittsburgh N. A.1 Orangeburg Edisto National Bank.1 The Diamond National Bank Rock Hill National Union Bank.1 of Pittsburgh.1 Spartanburg Central National Bank.3 Duquesne National Bank.1 The First National Bank.1 VIRGINIA. Monongahela National Bank.5 National Bank of America.3 Abingdon First National Bank.1 Peoples National Bank .5 Alexandria Citizens National Bank.3 Second National Bank of First NationalBank.3 Allegheny.1 Appalachia First National Bank.6 Third National Bank.1 Chariottesville National Bank of Charlottes- Union NationalBank.1 ville.3 Western National Bank.1 Peoples National Bank.1 Punxsutawney „ .Punxsutawnev N a t i o 11 al Chase City The First National Bank of Bank.1 Chase City.1 Sharon The First National Bank of Chatham First National Bank.4 Sharon.1 Clifton Forge Clifton Forge National Bank.3 McDowell National Bank.3 First National Bank. 1 Titusville Second National Bank.1 Covington Citizens National Bank.3 Warren Warren National Bank.1 Covington NationalBank.3 Washington Citizens National Bank.18 Danville First National Bank.1 First National Bank.1 Harrisonburg First National Bank. 4 Ze;ienople Peoples National Bank.3 Lexington Rockbridge National Bank.1 Martinsville Peoples National Bank.s WEST VIRGINIA. Newport News First National Bank. *> Norfolk National Bank of Commerce.3 (See also District No. 5.) Seaboard NationalBank.1 Petersburg Virginia National Bank.4 Elm Grove First National Bank of Elm Reedville Commonwealth National Grove.1 Richmond Am Ba er n i k ca . n 4 National Bank.3 New Cumberland First National Bank.s First NationalBank.1 Sisterville Farmers & Producers Na- Merchants National Bank.1 tionalBank.1 Roanoke American National Bank.3 Wheeling National Bank of West Vir- National Exchange Bank.1 ginia.1 For footnotes see page 266. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

260 ANNUAL EEPOKT FEDERAL RESERVE BOARD. DISTRICT NO. 5—Continued. DISTRICT NO. 6—Continued. VIRGINIA—continued. LOUISIANA. Rocky Mount Peoples National Bank.3 (See also District No. 11.) South Boston Planters & Merchants National Bank.3 Alexandria First National Bank.2 Boston National Bank.1 Crowley First National Bank of Acadia Staunton Augusta National Bank.1 Parish.™ National Valley Bank.1 Lake Charles Calcasieu National Bank of Warrenton Fauquier National Bank.1 Southwest Louisiana.21 Winchester Shenandoah Valley National New Orleans The Whitney-Centra 1 Na- Bank.3 tional Bank of New Orleans.11 Opelousas The Opelousas National WEST VIRGINIA. Bank.1 (See also District No. 4.) MISSISSIPPI. Clarksburg Empire National Bank.3 (See also District No. 8.) Union National Bank.3 Fairmont National Bank of Fairmont .* Biloxi First National Bank.3 Fairview First National Bank.3 Canton First Nationa 1 Bank.3 Graf ton First Nationa 1 Bank.1 Laurel The Commercial National Huntington First National Bank.1 Bank & Trust Co.1 The Huntington National First NationalBank.1 Bank.1 Meridian First National Bank.2 Madison Madison National Bank.3 M Pa a r r k t e in rs s b b u u r r g g P O a l r d k N er a sb ti u o r n g a l N B a a ti n o k n . a 1 l Bank.1 TENNESSEE. (See also District No. 8.). DISTRICT NO. 6. Dickson Citizens National Bank.™ ALABAMA. K Fa in y g e s tt p e o v r i t l le E Fi l r k s t N N at a i t o io n n al a l B B an an k k .2 . 2 11 Anniston Anniston National Bank.11 Knoxville City National Bank.» Fir si National Bank.2 McMinnville Peoples National Bank.17 Athens Firs t National Bank, e Nashville American National Bank.1 Bessemer First National Bank in Besse- Broadway NationalBank.3 mer.2 Cumberland Valley National Birmingham First National Bank.1 Bank.3 Cullman Leeth National Bank.3 Fourth & First National Florence First National Bank.2 Bank.2 Gadsden First NationaIBank.* Tennessee-Hermitage Na- Mobile First National Bank.2 tional Bank.3 Montgomery First National Bank.^ Oxford First National Bank of Ox- DISTRICT NO. 7. ford. 2 P Se ie lm dm a ont F C i i r t s y 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 4 ILLINOIS. Talladega Talladega Nationa 1 Bank.3 (See also District No. 8.) Tuscaloosa City National Bank.2 First National Bank.2 Aurora First National Bank.1 Old Second National Bank.* FLORIDA. Belvidere Second National Bank.3 Bushnell First National Bank.1 Bartow Polk County National Bank Cambridge Fanners National Bank.1 of Bartow.1 Canton Canton National Bank.1 Bradentown First National Bank.3 The First National Bank of DeFuniak Springs... First National Bank.3 Canton.1 Jacksonville Barnett National Bank.3 Casey First National Bank.3 Panama City First National Bank.5 Charleston National Trust Bank.1 St. Augustine St. Augustine National Bank.1 Chicago Corn Exchange National St. Petersburg Central National Bank.4 Bank.e First National Bank.3 First National Bank of Engle- Tampa First National Bank.2 wood.3 West Palm Beach.. .First National Bank.1 Calumet National Bank of Chicago.1 GEORGIA. Live Stock Exchange National Bank of Chicago.1 Athens Georgia National Bank.2 National Bank of the Repub- National Bank of Athens.3 lic.1 Atlanta Atlanta National Bank.2 National City Bank.1 Fourth National Bank.] Chillicothe First National Bank.1 Fulton National Bank.l Danville First National Bank.1 Lowry National Bank.3 Second National Bank of Brunswick NationalBank of Brunswick.1 Danville.2 Carrollton First National Bank of Car- Decatur Citizens National Bank.l rollton.1 Milliken National Bank.3 Dawson Dawson National Bank.7 National Bank of Decatur.3 Fitzgerald Exchange National Bank.3 Dixon Dixon National Bank.1 First National Bank of Fitz- Elmhurst First National Bank of Elmgerald.36 hurst.1 LaGrange LaGrange National Bank.2 El Paso Woodford County National Macon Fourth National Bank.3 Bank.1 Qmtman First National Bank.n The First National Bank of Winder Winder National Bank.1 El Paso.1 For footnotes see page 266. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIDUCIARY POWERS GRANTED. 261 DISTRICT NO. 7—Continued. DISTRICT NO- 7—Continued. ILLINOIS—continued. INDIAN A—continued. Freeport First National Bank.1 Russiaville First National Bank.4 Galesburg First National Bank.* Shelbyville Th o e f S F h a e rm lby er v s i ll N e. a 1 tional Bank: Henry First National Bank of Sheridan Farmers National Bank.2 Henry .10 First National Bank.3 Joliet First National Bank.3 South Bend First National Bank.3 Joliet National Bank.i Swayzee The First National Bank.1 Kankakee City National Bank.3 Thorntown Home National Bank.4 Kewanee First National Bank.i Tipton Citizens National Bank.3 LaSalle LaSalle National Bank.3 Wabash Farmers & Merchants Na- Macomb Union National Bank.1 tional Bank.3 Marseilles First National Bank.3 Whiteland Whiteland National Bank.3 Mattoon National Bank of Mattoon.4 Wilkinson Farmers National Bank.4 State National Bank.i Winamac First National Bank.2 Monticello First National Bank.1 Moweaqua First National Bank.4 IOWA. Ottawa NationalCity Bank of Ottawa.1 Peoria T C h e B n e a tr n a k C l N o o m f a t P m io e e o n r r a c i l i a a . B l 2 an N k a .1 tional A A r u l r i e n l g ia to n A Th m A e u e r r F i e c i l a r ia s n t . 1 N N a a ti t o io n n a a l l B B an a k n . k 4 of Rockford R T M T h h o t B a i c i e o n r a k d n u n f S a o f k N a l r w . c d 1 a B t e u t d N a i r o i n e s a n r k h t s a i - o l A o n B f m N a a R l e n a r o B k i c c t . a k 2 a i n f n o k o r . n 3 d N . a 1 a l - B C B B e o a u d n o r a l c n i r r n e o g R f t t a o p n i ds M M C F F i i e c e e r r d r s r s r o a c c t t f r h h t N N . a a R 3 n n a 7 a a t t t t p i s s i o o i N N d n n s a a a a l N t t l i i B o o B a n n a t a i a n a o n l l k n k B B . a 3 l a a o B n n f k k a B . . n 3 1 a k n .L - Waukegan The Waukegan National Charter Oak First National Bank.22 Bank.1 Cherokee First National Bank.1 Clarence First National Bank.3 INDIANA. Clinton City National Bank.3 (See also District No. 8.) Merchants National Bank.55 Coon Rapids First National Bank.4 Batesville First National Bank.3 Council Bluffs City National Bank.3 Brazil Citizens National Bank.1" First National Bank.1 First National Bank.3 Decorah National Bank of Decorah.8 Riddell National Bank.3 Des Moines Des Moines National Bank.2 Brookville Franklin County National Dubuque First National Bank.1 Bank.3 Elkader First National Bank.1 National Brookville Bank.3 Emmetsburg Emmetsburg National Bank.8 Cambridge City First National Bank.2 E verly First National Bank.™ Clay City First National Bank of Clay Fairfield First National Bank.2 City.1 Fonda First National Bank.3 Crawfordsville Citizens National Bank.3 Fontanelle First National Bank of Fon- Elston National Bank.2 tanelle.1 Dana First National Bank.4 Gladbrook First National Bank.4 Dublin First Nationa 1 Bank. * Greenfield First National Bank.1** Dyer First Nationa 1 Bank.3 Grinnell Merchants National Bank of Edinburg Farmers National Bank.3 Grinnell.i8 Elkhart First National Bank.1 Hawarden First National Bank." Fort Wayne The First & Hamilton Na- Humboldt First National Bank.3 tional Bank of Fort Wayne.2 Independence First National Bank.3 Old National Bank.1 Indianola First National Bank.4 Franklin Franklin National Bank.3 Kanawha First National Bank.4 Goshen City National Bank.1 Le Mars First National Bank.4 Greencastle The First National Bank of Linn Grove First National Bank.1 Greencastle.1 Manchester First National Bank.3 Hammond First National Bank.8 Marengo First National Bank.3 Indianapolis Fletcher-American National Marshalltown First National Bank.4 Bank.i1 Milford First National Bank.4 Kokomo Citizens National Bank.3 Montezuma First National Bank.3 Howard National Bank.1 Muscatine First National Bank.1 LaPorte First National Bank.3 Newell First National Bank.1 Liberty Union County National New Sharon First National Bank.1" Bank.4 Newton Clark National Bank of New- Logansport City National Bank.2 ton.1 First National Bank.2 Odebolt First National Bank.3 Lowell State National Bank of Lo- Oskaloosa Oskaloosa National Bank.4 well.™ Paullina The First National Bank of Marion First National Bank.3 Paul Una.11 Marion National Bank.1 Perry The Perry National Bank.1 Michigan City Merchants National Bank.1 Peterson First National Bank.3 Mishawaka First National Bank.3 Red Oak First National Bank.3 Monrovia First National Bank.3 Rippey First National Bank.17 Muncie Delaware County National Rockwell City Rockwell City National Bank.1 Bank.1 New Carlisle First National Bank.4 Royal Citizens National Bank.4 New Castle First National Bank.1 Sibley First National Bank.4 Peru First National Bank.1 Sioux City Continental National Bank.1** Richmond First National Bank. 1 Sioux National Bank in Sioux Second National Bank.3 City.1 Rochester First National Bank.24 Sioux Rapids First"National Bank.4 Rockville Rockville National Bank.3 Spencer First National Bank of Spen- Rushville Rush County National Bank.3 cer.1 Rushville National Bank.3 Stanton First National Bank.3 For footnotes see page 266. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 ANNUAL REPORT FEDERAL RESERVE BOARD. DISTRICT NO. 7—Continued. DISTRICT NO. 8. IOWA—continued. ARKANSAS. Storm Lake Citizens National Bank.1 Batesville First National Bank." Story City First National Bank.3 Eldorado Citizens National Bank.1 Washington Washington National Bank.3 Fordyee First National Bank.e Waterloo Commercial National Bank.3 Fort Smith Merchants National Bank.i Leavitt & Johnson National Hot Springs Arkansas National Bank.1 Bank.3 Citizens National Bank.7 Waverly First National Bank.3 Jonesboro First National Bank.1 Webster City Farmers National Bank.3 Lake Village First National Bank of Lake First National Bank.1 Village.1 Little Rock England National Bank.1 MICHIGAN. Mariana Lee County National Bank.3 Mena The First National Bank of (See also District No. 9.) Mena.e Newport First National Bank.2 Battle Creek The City National Bank of Texarkana State National Bank.1 Battle Creek.2 Central National Bank.3 ILLINOIS. Old National Bank.1 Bay City First National Bank.3 (See also District No. 7.) Benton Harbor Fa ti r o m n e a r l s B a & n k. M 1 erchants Na- Anna First National Bank.3 Birmingham First National Bank.3 Belleville First National Bank.2 Boyne City First National Bank.4 The St. Clair National Bank Detroit National Bank of Commerce.2 of Belleville.1 Flint First National Bank.3 Cairo Cairo National Bank.1 Grand Rapids Grand Rapids National City Ed wards ville Ed war dsville National Bank.i Bank.is Old National Bank.** Jacksonville Ayers National Bank.3 Hillsdale First National Bank.3 Marion The First National Bank of Jackson National Union Bank.1 Marion.1 Peoples National Bank.1 Metropolis City National Bank.3 Kalamazoo First National Bank of Kala- Mount Sterling First National Bank.3 mazoo.1 Murphysboro First National Bank.2 Lansing Capital National Bank.3 Nashville Farmers & Merchants Na- The City National Bank.« tional Bank.1 .Muskegon Hackley National Bank." First National Bank.1 Union National Bank.1 Nokomis Nokornis National Bank.* Petoskey First National Bank.3 O'Fallon First National Bank.i Pontiac The National Bank of Pon- Pittsfield First National Banks.1 tiac.i Quincy Ricker National Bank.1 Port Huron First National Exchange Sparta First National Bank.26 Bank of Port Huron.3 Vandalia First National Bank.2 Rochester First National Bank.3 Saginaw Second National Bank.2 INDIANA. Traverse City First National Bank.4 (See also District No. 7.) WISCONSIN. Bedford Bedford National Bank.7 (See also District No. 9.) Evansville City National Bank.3 Old State National Bank.i Antigo First National Bank of An Farmersburg First National Bank.27 B A e p a p v l e et r o D n am L C O a i t l t i n d . i g z g o N e l . a n 2 a d s t e i N o N n a a t a i l t o i B o n n a a l a n l B k B . a 3 a n n k k .1 .1'' N J M M O e e f r t i T t w l . c e e V h a r A e s n e o l r s l l n n b . . v o a . i n n ll y e T N F F F i i h i e r r r e w s s s t t t N N N A N a a l a a b t t t t i i i a i o o o o n n n n n y a a a a l N l l l B B B a B t a a a i a n n o n n k k n k k . . a . 3 3 1 l o B f a n O k r 1 - Clintonville First National Bank.2 leans.6 E Fo d n ge d r t d o u n Lac F C i o t r o m s n t m . N 2 e a r t c i i o a n l a N l a B ti a o n n k a l o f B E a d n g k e .1 r- Princeton F Pe a B o rm p an l e e k r s . s 2 N A a m ti e o r n ic a a l n B a N n a k t . i 1 o 8 nal First Fond du Lac National Seymour First National Bank.1 J H M an a a r e n t s f it o v o r i w l d l o e c F N F i i a r r B t s s i t t o a n n N N k a a a l . t t 2 i B i o o a n n n a a k l l B B of a a M n n k k a . . 1 n 3 1 itowoc.1 T Su el ll l i C va it n y N S C e i a t y t i m z io e o n n u a s r l N N B a a t a i t n o io k n n a a o l l f B B S a a n u n k l k l . i 3 . v 1 an.11 Marinette First National Bank.1 Milwaukee Marine National Bank of Mil- KENTUCKY. waukee.1 (See also District No. 4.) The National Exchange Bank Monroe Fi o r f s t M N i a lw tio au n k al e e B .1 ank,3 D Bo a w nv li i n ll g e Green C A i m tiz e e r n ic s a N n a N ti a o t n io a n l a B l a B n a k n . k 1 .15 N O e sh e k n o a s h h C N it a B y t a i N n o k a n t . i 1 a o l n al B M an an k u .3 facturers E G l l i a z s a g b o e w th town F F F a i a r r r s m m t- e e H r r s s a r N N d a i a n t t i i o N o n n a a a t l i l o B B n a a a n n l k k B . . 2 a 3 nk.1 R R a ip c o in n e T A h m B e a e n r M i k ca a o n n f u N f R a a a c t c t i u i o n r n e e a r . s l 1 ' B N an a k ti . o 1 nal H H H a e o r n p r d k o e i d n r s s s b o v u n i r l l g e F H F i i e r r n s s t d t e N N rs a a o t t i i n o o n n N a a a l l t B B io a a n n n a k k l . . B 1 1 ank.3 Th R e i p F o i n rs .1 t National Bank of Lawrenceburg L A a n w de re rs n o c n e b N u a rg ti on ( a N l B a a t n i k o . n 7 al Shawano Th o e f W Sh i a s w co a n n s o i . n 2 National Bank Lebanon Ci B tiz a e n n k s .2 National Bank.3 W W Vi a e ro u st q k u e B s a e h n a d N F F i i a r r r o t s s i q t o t u n N a N a 1 a l a t i t E o io x n n c a h a l l a B n B a g n e a k n B . k 1 a n o k f . 3 Vi- Louisville M Lo C a u r o i i o m sv n p i l N a l n e a y t N i . o 5 a n t a io l n B a a l n B k. a 3 nking For footnotes see page 266. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIDUCIARY POWERS GRANTED. 263 DISTRICT NO. 8—Continued. DISTRICT NO. 9—Continued. KENTUCKY—continued. Louisville First National Bank of Louis- Billings Merchants National Bank.3 ville, i Montana National Bank.1 National Bank of Kentucky.1 Yellowstone National Bank.1 Morganfield Morganfield National Bank.3 Bozeman Commercial National Bank.a Owensboro United States National Bank.4 Great Falls Great Falls National Bank.3 Paducah City National Bank.1 Kalispell First National Bank.3 First National Bank.4 Lewistown First National Bank.1^ Miles City First National Bank.1 MISSISSIPPI. Missoula Western Montana National Bank.2 (See also District No. 6.) Greenville First National Bank.3 NORTH DAKOTA. Ellendale First National Bank.3 MISSOURI. Fargo Merchants National Bank.1 Forman First National Bank.4 (See also District No. 10.) Grand Forks First National Bank.1 Carrollton First National Bank.2 Minot Union National Bank of Mi- Chillicothe First National Bank.* not.w Columbia Boone County National Bank.3 SOUTH DAKOTA Exchange National Bank.3 Hannibal Hannibal National Bank.1 Aberdeen Aberdeen National Bank.8. Jefferson City First National Bank of Jeffer- Arlington First National Bank.3 son City.1 Brookings First National Bank.x Kirksville Citizens National Bank.2 Colman First National Bank.3 Ridge way First National Bank, i Flandreau First National Bank.4 St. Louis Merchants-Laelede National Lake Preston First National Bank.3 Bank, s Rapid City First National Bank.11 National Bank of Commerce.1 Sioux Falls Minnehaha National Bank.3 State National Bank.1 Security National Bank.3 First National Bank.3 Sioux Falls National Bank.2 Sedalia Citizens National Bank.3 Spearfish American National Bank.4 Springfield Union National Bank.3 Vermillion First National Bank.85 Versailles First National Bank.4 Watertown First National Bank.1 Webster First National Bank.4 TENNESSEE. WISCONSIN". (See also District No. 6.) (See also District No. 7.) Memphis Central State National Bank.i Ashland Ashland National Bank.1 DISTRICT NO. 9. Northern National Bank.11 Barron First National Bank.4 MICHIGAN. Superior First National Bank.™ United States National Bank (See also District No. 7.) of Superior.1 Manistique First National Bank.3 DISTRICT NO. 10. Negaunee Negaunee National Bank.4 COLORADO. MINNESOTA. Akron First National Bank of Ak- Albert Lea First National Bank.2 Boulder Bo ro u n ld .3 er National Bank.3 Argyle First National Bank of Ar- Citizens National Bank.10 Austin A Fi u g rs s y t t l i e n N .i s N at a io ti n o a n l a B l a B n a k n . k 2 .1 C C a e n n o te n r City F F i r B r e s e a t m n N k o . a n 3 t t i on C a o l u B n a t n y k .3 National C B C D L Fe h a r r u o e r n a l g m o t e u f u k s i t i e b s h s d l t o j o d F i r n a o l ls C A F M F F F F i e i i i i m r t r e r r r y s s s s r g e t t c t t u r N h N i N N N s c a a a a a a a n F t n t i t t t t i a o i i i s o o o o l N n l N n n n n s a a a a a a a l t N l l l l i t B o i B B B B a o n a t a a a a n i n a n n o n n a l k k n k k k l B . . B a . 1 . . K 1 4 2 a l a n B n k k a .2 n .2 k.2 C Pe o n lo v r e ad r o Springs H C D E S F F C t i i x o e a o o B r r l c n m l s s c o o a h v t t k r r i n a a e a l N N k d t n r d Y o a a g . o o N 1 n t t a e i i N r a o o N N d t n n a S i s a a t o a a p i t t n l l o i r i N o i o B a B n n n a l n a g a a t a B l a n n i s l o l B k a k B n B n . a . 1 a 1 N a a n k l n n k . a 1 k k B . t 1 i . . o 1 a 1 n n a k l Little Falls Fi F rs a t l l N s.3 a 3 tional Bank of Little of Denver.1 Minneapolis Metropolitan National Bank.i United States National Bank/* N O o w rt a h t f o ie n l n d a N M M N N F o a o i i i n d r t r r i s t t n l o h h a t e n n f w N a i a d e p e l a l o s d N t F t l i e i o a a s N r r n t n N i m a a o N t l a n e i B o t a r a i s n t o l a i a B n o B n l a n k a a B l a n . n 1 B l k a k B n . a . 7 2 a n k n k .1 k .1 /1 E E F n a o g g rt l le e C w o o l o li d n s P F F F F o o i i i C B r r r u r s s s o a t d t t t n u r C N N N k e n o . t a a a 1 y l t 1 t l t . i i i i 3 n o o o V s n n n a a a a N l l l l l e a B B B y t a a i a o n n n n k k k a . . N 3 3 l o a B f t E i a o n a n g k a l . e l 1 R W S St t e i . a l d s l P w e W e c a t a e t i e n r r g F F F G i i a B o r r r s s o m a t t d n h e N N k r u . s a a e 1 t t N i i o o a n n C t a a i o o l l u n B B n a a t a l y n n B k k a . . 2 N 1 nk a . t 1 ional F G G o r r e a r e t n l d M ey J o u rg n a c n ti on U G G F F i n i r r r r e a i s s e o n t t l n e d N N y N V a a N t a a t i i l t o a o l i e o t n n i y n a o a a l n l N l B B a a B l a a t i B n n a o n k k a n k . n . a 3 1 . k l 3 . B 1 ank.1 Wells First National Bank.i Gunnison First National Bank of Gun- Windom Fi d rs o t m N .1 ational Bank of Win- nison.1 Winona Winona National Bank.1 For footnotes see page 266. Digitized for FRASER 45525°—21 18 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

264 ANNUAL REPORT FEDERAL RESERVE BOARD. DISTRICT NO. 10—Continued. DISTRICT NO. 10—Continued. COLORADO—continued. NEBRASKA—continued. Hugo First National Bank.4 Ord First National Bank.3 Idaho Springs First National Bank.3 Randolph The First National Bank of Lamar The Lamar National Bank.1 Randolph.1 Las Animas First National Bank.3 South Omaha Stock Yards National Bank.5 Longmont American National Bank.1 Utica First National Bank.2® Loveland First National Bank.1** Loveland National Bank.10 NEW MEXICO. Montrose Montrose National Bank.1 Sterling Farmers National Bank.1 (SeealsoDistrictNo.il.) Logan County National Bank.1 Las Vegas First National Bank of Las Telluride First National Bank.2 Vegas.1 Trinidad First National Bank. * Raton First National Bank.11 Trinidad National Bank.1 Santa Fe First National Bank.1 Walsenburg First National Bank.1 KANSAS. OKLAHOMA. A Co n f t f h e o yv n i y ll e 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 3 2 A En d i a d A Fi m rs e t r i N ca a n ti o N n a a t l i o B n a a n l k B .1 a " nk.1 Emporia C C o i T t m iz ru e m n s e t s r C c N i o a a . l 1 t i N on at a i l o B na a l n B k. a 1 nk & H La o w m t i o n n y C Th i m t e y e r N N ce a a t t o i i o o f n n H a a o l l m B B a i a n n n y k k . . 1 1 8 of Com- Fort Scott Citizens National Bank.11 First National Bank of Law Goodland Farmers National Bank.3 ton.i Horton First National Bank.3 McAlester American National Bank.e I J H L n e a u d w w t e e c p r l h e e l i n n n C c d s i e o e t y n n c e C F L F i o i a r r w m s s t t r m e N N n e c a r a c e t t i i i a o o N l n n a a a N t l l i a o B B t n i a a o a n n n l k k a B . l . 3 a 4 B n a k n .2 k.1 M Ok u l s a k h o o g m ee a City F A F i i A m r r s s l e t e t r s N i N t c e a a r a . n t t 2 i i ^ o N o n n a a a t l i l o B B n a a a n l n k B k .1 an o k f .3 M 0 c- Luray First National Bank.4 Farmers National Bank.3 Ottawa Peoples National Bank.3 First National Bank of Okla- Pratt First National Bank in Pratt, homa City.1 Kansas.1 - Liberty National Bank.1 Pittsburg National Bank of Commerce.1 Security National Bank.2 Sabetha National Bank of Sabetha.3 The Southwest National Salina Farmers National Bank.3 Bank of Oklahoma City.1 National Bank of America.1 Pond Creek Farmers National Bank.3 Topeka Farmers National Bank.3 Sallisaw First National Bank in Salli- Troy First National Bank.4 saw.26 Wichita First National Bank in Wich- Shawnee National Bank of Commerce.* ita.1 Shawnee National Bank.1 Winfield First National Bank.1 Tulsa Central National Bank.1 Exchange National Bank.15 First National Bank.12 MISSOURI. Woodward First National Bank.4 (See also District No. 8.) WYOMING. Cameron First National Bank.4 Carthage Central National Bank.4 Basin First National Bank.10 Kansas City Commonwealth National Buffalo First National Bank.* Bank.11 Casper Casper National Bank.3 Continental National Bank oi' National Bank of Commerce Jackson County.1 of Casper.10 Drovers National Bank.3 Wyoming National Bank.3 Fidelity National Bank & Cheyenne American National Bank.1 Trust Co.1 • Citizens National Bank.1 First National Bank.3 First National Bank.1 Interstate National Bank.1 Stock Growers National New England National Bank.1 Bank.1 King City First National Bank.1 Cody Shoshone National Bank.15 Maryville The First National Bank of Evanston First National Bank.4 Maryville.25 Kemmerer First National Bank.3 Neosho First National Bank.1 Laramie First National Bank.4 St. Joseph American National Bank.3 Powell First National Bank.2 Burnes National Bank.3 Powell National Bank.3 Tootle-Lacy National Bank.2 Rawlins First National Bank. * Rawlins National Bank.* Rock Springs First National Bank. * NEBRASKA. Rock Springs National Bank.1 B Co u l t u te m bus 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 . . 4 l S S h ho er s i h d o a n n i F Fi 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 1 Decatur First National Bank.4 Thermopolis The First National Bank of Emerson The First National Bank of Thermopolis.1 Emerson.2 Lyons First National Bank.4 DISTRICT NO. 11. Nebraska City The Nebraska City National Bank.1 Norfolk Norfolk National Bank.4 Omaha First National Bank.3 Nogales First National Bank.2 Merchants National Bank.3 Tucson Arizona National Bank.1 United States National Bank. Consolidated National Bank.3 For footnotes see pag3 266. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIDUCIARY POWEKS GRANTED. 265 DISTRICT NO. 11—Continued. DISTRICT NO. 12—Continued. LOUISIANA. CALIFORNIA. (See also District No. 6.) Bakersfield First National Bank.1 Calexico First National Bank.5 Shreveport Commercial National Bank.3 Chico Butto County NationalBank.i Fullerton Farmers & Merchants Nation- First National Bank.3 Los Angeles Co al n t B in a e n n k t . a 5 l National Bank.5 Farmers & Merchants Nation- NEW MEXICO. al Bank.1 Mountain View First National Bank.5 (See also District No. 10.) Oakland Central National Bank.1 Albuquerque State National Bank.3 Orland First National Bank.5 The First National Bank of Pasadena National Bank & Trust Co.1 Albuquerque.11 Pleasanton First National Bank.5 Carlsbad First National Bank.1 Redwood City First National Bank of Mateo Roswell Citizens National Bank.4 County.30 First National Bank.4 Sacramento Capital National Bank.1 Silver City Silver City National Bank.31 National Bank of D. O, Mills & Co.11 TEXAS. San Francisco American National Bank.5 Bank of California, N. A.1 Abilene ' Citizens National Bank.32 Santa Barbara First National Bank.1 Amarillo First National Bank.3 County National Bank & Austin American National Bank.4 Trust Co. of Santa Barbara.! B B B r e o e a n n u h h m a a m o m n t F F T i i h B r r e s s r t t e F N N n i h a a r a s t t i i t m o o n N . n 1 a a 1 a l l t i B B o a a n n n a k k l . . 4 B 3 ank of V S W a is i n l a t m l a i i a P n g a t u o l n a F F F i i i P r r r s s a s t t t u N N l N a a a . a 1 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 . . o 5 5 f Santa Brownwood Citizens National Bank.* Colorado City National Bank.3 IDAHO. C D o a r l s la ic s a na A Co m rs e i r c i a c n an a N Ex at c i h o a n n a g l e B N an a k ti . o 3 nal Boise Boise City National Bank.1 Bank.1 First National Bank of Ida- D El e n P i a s s o o n C C N D F S i t i i a a r t t a l t y y s t l i t e a o N N s n N N a a a N a t t l a i i a t o o B t i t i o n n i o a o n a a n n n a l l a k a l B B l l B o a a B f B a n n a n C a k k n k n o . . 1 k 1 . k m x . 1 m o e f r c E e. l 3 H H W P M a a a o e y g i s i l e s c e e e o t r y t r m w e an F H F F F i i i i a h r r r r i o s s s s l t . t t t e 2 y N 5 N N N a a N a a t t t t i a i i i o o o o ti n n n n o a a a a n l l l l a B B B B l a a a B a n n n n a k k k k n . . . . k 6 1 1 3 .4 Paso.1! The State National Bank of NEVADA. Fort Worth Fa E rm l P e a rs s o. & 1 Mechanics Na- Tonopah Nevada First National Bank.5 tional Bank.35 First National Bank.12 OREGON. G G r a a lv n e g s e t r o n F S F F t o i i o r r r s c s t t t k W N N Y a a o a t t r i i r t o o d h n n s N a a N l l a B B a ti t a a o io n n n n k k a a . l . 3 3 l 2 B B a a n n k k .8 .3 A C E o u sh r g v l e a a n n l e l d i s 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 . . . 1 3 3 H M G o r c e u K e s n i t n o v n n il e le y N F G i a r B r e t s i a e t o n n n N v k a i . a l 3 l l t e i B o N a n n a a k l t i B o o n f a C a n l o k E m .3 x m ch e a rc n e g .1 e 1 J H G u a r n a r c r n t i t i s s o b n u P r a C g s i s t y F F F i i i e r r r s r s s n t t t N N N O a a a re t t t i i i g o o o o n n n n a a a . l l l 1 8 B B B a a a n n n k k k . . o 1 4 8 f South- Marshall M Fi a rs rs t h N al a l ti N o a n t a i l o n B a a l n B k. a 4 nk.3 Marshfield. .1 Fi B rs a t y . N 1 ational Bank of Coos O Pa r l a e n s g ti e n e R Fi o r y st a l N N a a ti t o io n n a a l l B B an a k n . k * .3 M Me il d to fo n r d M Fi e rs d t f o N rd a t N io a n t a io l n B a a l n B k a .3 nk.i P S S a o a n n rt A A A n n r g t t o e h n l u o i r o F C F S N L a i i o e a r r n c n s t s k i t t t A o r w N a N n n o l a g a a o l N t e t d i i B l o a o o n t a n N i N n o a a a k l l n a t i B a B t o o i l o a a f n B n n n a C a k k a l o l n . . B m 1 s B k a m . a n 3 n e k k r . c 1 .4 e.1 O P S P a e o n l n r e t t a d m l r l a i e n o t d o n U A F F F C i i i n m a r r r i p s s s e t t t t i e r t d N a i N N c l S a a a a N n t t t t i i a i a o o o t N t e n n n io s a a a a t n l l N l i B a B o B a l n a t a a B i n a n o n k l a k n k . n * B . a . 3 k ? 3 l a . B n 1 k a . n 3 k.1 Sealy Sealy National Bank.3 Sherman Commercial National Bank.1? UTAH. Merchants & Planters National Bank.1 Salt Lake City Continental National Bank.3 Stanton First National Bank.4 Texarkana Texarkana National Bank.1 Deseret National Bank.s Troup First National Bank.e Tyler Citizens National Bank.4 WASHINGTON. Victoria Victoria National Bank.3 Waco First Nation a 1 Bank.* Bellingham Bellingham National Bank.s Waxahachie The Citizens National Bank of First National Bank.ss Waxahachie.1 Clarkston. First National B ank. i Wichita Falls. City National Bank.1 Colfax „ Farmers National Bank.3 First National Bank.1 Ellensburg Washington N ational Bank.* Everett First National Bank.1 Iloquiarn The First National Bank of DISTRICT NO. 12. Hoquiam.1 Mount Vernon First National Bank.4 ALASKA. Oroville First National Bank.1 Pasco First National Bank of Pasco.1 Fairbanks First National Bank.1 Port Angeles The First National Bank.i Pullman First National Bank.10 For footnotes see page 2G6. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

266 ANNUAL, REPORT FEDERAL RESERVE BOARD. DISTRICT NO. 12—Continued. DISTRICT NO. 12—Continued. "WASHINGTON—continued. WASHINGTON—continued. Seattle Dexter Horton National Tacoma National Bank of Tacoma.i Bank.i Toppenish First National Bank of Top- First National Bank.3 penish.1 The Metropolitan National Vancouver Vancouver National Bank.3 Bank. 11 Walla Walla Baker Boyer National Bank.1 National Bank of Commerce.1 First National Bank.i National City Bank.i Third National Bank.23 Seattle National Bank." Yakima Yakima National Bank.1 Union National Bank.1 Spokane - Exchange National Bank.i Fidelity National Bank.i Old National Bank of Spo- Honolulu FirstNationalBank of Hawaii kane.1 at Honolulu.2 I Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics.* a 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, s Registrar of stocks and bonds. « Trustee. i Trustee, executor, administrator, guardian of estates, assignee, receiver, and committee of estates of lunatics.* 8 Trustee, executor, administrator, and guardian of estates.* a Trustee, executor, administrator, guardian of estates, and receiver.* io Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and receiver. II Trustee,executor,administrator,registrar of stocks and bonds,guardian of estates,assignee,and receiver.* 12 Trustee, executor, and registrar of stocks and bonds. 13 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, and receiver. i* Trustee, executor, administrator, assignee, and receiver.* 15 Trustee and registrar of stocks and bonds. 16 Trustee, executor, administrator, registrar of stocks and bonds, assignee, and receiver. IT Trustee, executor, administrator, guardian of estates, assignee, receiver, and committee of estates of lunatics. 18 Trustee, executor, administrator, guardian of estates, assignee, and receiver.* is Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, receiver, and committee of estates of lunatics .* so Trustee, and registrar of stocks and bonds.* si Trustee, executor, administrator, guardian of estates, assignee, receiver, and committee of estates of lunatics.* 22 Trustee, executor, administrator, and guardian of estates. 33 Trustee, administrator, and registrar of stocks and bonds. 24 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, and receiver.* as 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. ss Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, and assignee. 29 Executor and administrator. so Trustee, executor, administrator, guardian of estates, receiver, and committee of estates of lunatics.* 81 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and committee of estates of lunatics .* 32 Trustee and executor. 33 Trustee, executor, administrator, registrar of stocks and bonds, and guardian of estates.* 34 Trustee, executor, administrator, registrar of stocks and bonds.* 35 Executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics.* 36 Trustee, executor, administrator, registrar of stocks and bonds, assignee, receiver.* 87 Executor, administrator, guardian, assignee, and receiver. 38 Trustee, executor, administrator, guardian of estates, assignee, committee of estates of lunatics.* Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT FEDERAL RESERVE BOARD. 267 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. New Haven First National Bank. Norwich Thames National Bank. Maine: Portland Canal National Bank. Portland National Bank. 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: Buffalo Citizens Commercial Trust Co. Manufacturers & Traders National Bank. 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. Columbia Trust Co. Corn Exchange Bank. Equitable Trust Co. Farmers Loan & Trust Co. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

268 ANNUAL REPORT FEDERAL RESERVE BOARD. New York—Continued. New York Fifth Avenue Bank. First National Bank. Garfield National Bank. Guaranty Trust Co. Harriman National Bank. Importers & Traders National Bank. Irving National Bank. Liberty National Bank. Lincoln Trust Co. Mechanics & Metals National Bank. Mercantile Bank of the Americas. Mercantile Trust & Deposit Co. National Bank of Commerce. National City Bank. National Park Bank. New Netherlands Bank. Pacific Bank. Seaboard National 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. Union Savings & Trust Co. Cleveland Central National Bank. Cleveland Trust Co. Guardian Savings & Trust Co. Toledo Commerce Guardian Trust & Savings Bank. Pennsylvania: Greensburg First National Bank. 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 Commercial Bank. Baltimore Trust Co. Drovers & Mechanics National Bank. Citizens National Bank. Farmers & Merchants National Bank. Maryland Trust Co. Merchants-Mechanics First National Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ACCEPTANCES TO 100 PER CENT. 269 Maryland—Continued. Baltimore National Bank of Baltimore. National Bank of Commerce. National Exchange Bank. National Marine Bank. National Union Bank of Maryland. Second National Bank. Western 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. 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. Pensaeola Citizens & People's National Bank. Georgia: Atlanta Atlanta National Bank. Fourth National Bank. Lowry National Bank. Macon Fourth National Bank. Macon National Bank. Savannah Citizens Trust Co. Citizens & Southern Bank. Hibernia Bank. Savannah Bank & Trust Co. Valdosta First National Bank. Louisiana: Jennings Jennings National Bank. New Orleans Canal Commercial Trust & Savings Bank, Hibernia Bank & Trust Co. Interstate Trust & Banking Co. Liberty Bank & Trust Co. Marine Bank & Trust Co. Whitney-Central National Bank. New Roads The Pointe Coupee Trust & Savings Bank. Mississippi: Vicksburg Merchants National Bank. Tennessee: Chattanooga Hamilton National Bank. First National Bank. Clarksville First National Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

270 ANNUAL REPORT FEDERAL RESERVE BOARD. 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. National Bank of Commerce. Wisconsin: Milwaukee First National Bank. DISTRICT NO. 8. Mississippi: Canton First National Bank. Missouri: St. Louis First National Bank. Liberty Central National 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 Bank. Northwestern National Bank. St. Paul Capital National Bank. First National Bank. DISTRICT NO. 10. Colorado: Denver Denver National Bank. Kansas: Hutchinson First National Bank. Lawrence Lawrence National Bank. Missouri: Kansas City Commerce Trust Co. Continental National Bank. Fidelity National Bank & Trust Co. First National Bank. National Bank of Commerce. St. Joseph First National Bank. Oklahoma: Oklahoma City Security National Bank. DISTRICT NO. 11. Arizona: Nogales First National Bank. Texas: Austin American National Bank. Brown wood Brownwood National Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ACCEPTANCES TO 100 PER CENT. 271 Texas—Continued. Dallas American Exchange National Bank. City National Bank. Dallas National Bank. El Paso First National Bank. Fort Worth Farmers & Mechanics 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. Nayasota First National Bank. Paris Lamar State Bank & Trust Co. San Angelo First National Bank. Sherman Commercial National Bank. Terrell First National Bank. American National Bank. Waco First National Bank. Waxahachie Waxahachie National Bank. DISTRICT NO. 12. California: Los Angeles First National Bank. Merchants National Bank. 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. Santa Barbara First National Bank. Oregon: Portland First National Bank. Ladd & Tilton Bank. Northwestern National Bank. United States National Bank. Washington: Seattle Dexter Horton National Bank. First National Bank. National Bank of Commerce of Seattle. Seaboard National Bank. Seattle National Bank. Union National Bank. Spokane Spokane & Eastern Trust Co. Old National Bank. Exchange National Bank. Tacoma National Bank of Tacoma Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

272 ANNUAL REPORT FEDERAL RESERVE BOARD. PERSONNEL AND SALARIES. Salaries of officers and employees of Federal Reserve Banks as of Dec. 31, 1920. FEDERAL RESERVE BANK OF BOSTON. Num ner of officers and Salaries. employees Departments. 1919 1920 1919 1920 Chairman and Federal Reserve agent. 1 1 $15,000 $18,000 G overnor 1 1 25,000 25,000 Deputy governor 2 2 24,000 27,000 Other officers 8 9 38,500 50,500 Banking department 223 241 265.200 299,600 Bookkeeping department 32 40 33,240 50,000 Transit department 187 214 188,240 248,240 Federal Reserve agent's department.. 14 22 21,780 46,180 Auditing department 18 34,200 Fiscal agency department 262 179 347,980 227,100 General 25 49 23,460 64,500 Total. 755 776 982,400 1,090,320 FEDERAL RESERVE BANK OF NEW YORK (INCLUDING BUFFALO BRANCH). Chairman and Federal Reserve agent. 1 1 $30,000 $30,000 Governor 1 1 50,000 25,000 Deputy governor 2 4 51,000 95,000 Other officers 27 30 195,700 255,900 Banking department 1,297 1,075 1,608,220 1,609,610 Bookkeeping department 79 126 101,766 202,320 Transit department 614 522 580,700 590,700 Federal Reserve agent's department.. 30 75 54,804 157,620 Auditing department 109 210,650 Fiscal agency department 741 461 989,656 723,680 General 170 532 200,118 738,793 Total 2,962 2,936 3,861,964 4,639,273 FEDERAL RESERVE BANK OF PHILADELPHIA. Chairman and Federal Reserve agent. 1 $15,000 $15,000 Governor 1 25,000 25,000 Deputy governor 1 15,000 Comptroller 1 6,000 Other officers 9 6 51,500 51,000 Banking department 134 126 173,060 176,420 Bookkeeping department 26 25 29, 700 34,520 Transit department 186 211 176,904 244,240 Federal Reserve agent's department.. 11 22 27,130 47,900 Auditing department 26 48,190 Fiscal agency department 63 105 76,640 132,950 General 216 316 237,440 361,868 Total. 812,374 1,158,083 FEDERAL RESERVE BANK OF CLEVELAND (INCLUDING PITTSBURGH AND CINCINNATI BRANCHES). Chairman and Federal Reserve agent. 1 1 $20,000 $23,250 Governor 1 1 25,000 30,000 Other officers 13 18 65,199 101,500 Banking department 175 262 232, 819 404,268 Bookkeeping department 38 50 41, 580 74, 772 Transit department 211 353 179, 620 386,532 Federal Reserve agent's department... 17 22 32,480 43,992 Auditing department. 30 60,872 Fiscal agency department 105 141 184, 589 200,156 General 65 91 66, 045 120,447 Total.. 847, 332 1,445,789 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PERSONNEL AND SALARIES. 273 Salaries of officers and employees of Federal Reserve Banks as of Dec. SI, 1920—Oontd. FEDERAL RESERVE BANK OF RICHMOND (INCLUDING BALTIMORE BRANCH). Number of officers and Salaries. employees. Departments. 1919 1920 1919 1920 Chairman and Federal Reserve agent 1 1 $12,000 $15,000 Governor . . 1 1 18,000 18, 000 Other officers 11 16 50,800 93, 250 Banking department 82 146 93, 410 185, 900 Bookkeeping department 13 30 14, 540 37,410 Transit department 157 276 125, 228 266, 848 Federal Reserve agent's department 9 15 19,900 38, 860 Auditing department 24 46,050 Fiscal agency department 54 71 63,330 85, 726 General. . . . .. . 73 87 83 560 110,932 Total . . 401 667 480,768 897,976 FEDERAL RESERVE BANK OF ATLANTA (INCLUDING BIRMINGHAM, JACKSONVILLE, NASHVILLE, AND NEW ORLEANS BRANCHES AND SAVANNAH AGENCY). Chairman and Federal Reserve agent.. 1 1 $10,000 $12,000 Governor 1 1 15,000 18,000 Other officers 18 21 76, 600 94, 800 Banking department 98 112 113,850 125,568 Bookkeeping department 32 44 33, 000 45, 600 Transit department 109 104 98,400 106, 010 Federal Reserve agent's department... 10 17 21,250 30,277 Auditing department 22 34,080 Fiscal agency department 60 82,980 79,820 General 36,288 64,568 Total.. 386 446 487,368 610,723 FEDERAL RESERVE BANK OF CHICAGO (INCLUDING DETROIT BRANCH). Chairman and Federal Reserve agent 1 1 $18,000 $24,000 Governor 1 1 30,000 35,000 Other officers 25 34 132,000 167,950 Banking department 274 370 352,782 561,180 Bookkeeping department 31 40 38,580 54,620 Transit department 299 458 207,236 510,460 Federal Reserve agent's department.. 17 37 33,460 72,560 Auditing department 27 32 34,900 48, 080 Fiscal agency department 277 300 365,538 432,200 General 247 458 274,091 541,400 Total 1,199 1,586,587 2,447,450 FEDERAL RESERVE BANK OF ST. LOUIS (INCLUDING LOUISVILLE, MEMPHIS AND LITTLE ROCK BRANCHES). Chairman and Federal Reserve agent.. 1 1 $15,000 $16,000 Governor 1 1 20,000 20,000 Other officers 14 19 66,300 100,200 Banking department 225 284 261,850 423,270 Bookkeeping department 23 54 25,650 67,420 Transit department 114 265 72,350 227,230 Federal Reserve agent's department... 9 10,950 19,980 Auditing department 30 48,560 Fiscal agency department 104 136 156,700 163,380 General 51 52 24,100 53,380 Total.. 541 652,900 1,139,420 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

274 ANNUAL REPORT FEDERAL RESERVE BOARD. Salaries of officers and employees of Federal Reserve Banks as of Dec. SI, 1920—Oontd. FEDERAL RESERVE BANK OF MINNEAPOLIS. Number of officers and Salaries. employees. Departments. 1919 1920 Chairman and Federal Reserve agent. 1 $12,000 $15,000 Governor 1 12,000 16,000 Deputy governor 2 17,500 Other officers 6 17,900 23,900 Banking department 128 104,380 166,880 Bookkeeping department 13 13 14,560 18,600 Transit department 101 192 85,860 202,836 Federal Reserve agent's department... 14 18 28,300. 40,320 Auditing department 11 16,020 Fiscal agency department 64 87 72,360 121,816 Total.. 459 347,360 638,872 FEDERAL RESERVE BANK OF KANSAS CITY (INCLUDING DENVER, OMAHA, AND OKLAHOMA CITY BRANCHES). Chairman and Federal Reserve agent.. 1 1 $12,000 $15,000 Governor 1 1 18,000 20,000 Other officers 15 20 64,400 78,473 Bookkeeping department 18 33 26,860 44,321 Transit department 199 315 206.160 330,153 Federal Reserve agent's department... 6 13 9,100 28,140 Auditing department 33 46,442 Fiscal agency department io7 206 194,890 277,140 General 186 241 239,060 290,318 Total.. 583 863 770,470 1,129,987 FEDERAL RESERVE BANK OF DALLAS (INCLUDING EL PASO AND HOUSTON BRANCHES). Chairman and Federal Reserve agent. 1 1 $14,000 $18,000 Governor 1 1 15,000 18,000 Other officers 15 17 62, 800 76,000 Banking department. 165 120 202,460 151,018 Bookkeeping department 23 32 24,780 36,370 Transit department 173 189 178,000 226,973 Federal Reserve agent's department... 16 20 25,260 50,342 Auditing department 36 45,908 Fiscal agency department 89 78 118,260 120,475 General 22 119 21,000 123,704 Total.. 505 613 661,560 866,790 FEDERAL RESERVE BANK OF SAN FRANCISCO (INCLUDING SPOKANE, PORTLAND, SEATTLE, SALT LAKE CITY, AND LOS ANGELES BRANCHES). Chairman and Federal Reserve agent 1 1 $18,000 $24,000 Governor „ 1 1 18, 000 24,000 Other officers 23 29 108,000 125,020 Banking department. 176 429 237, 380 581,592 Bookkeeping department 33 54 40, 740 71,340 Transit department 100 250 108, 720 305,760 Federal Reserve agent's department.. 18 23 43, 460 59,780 Auditing department 33 53 49, 900 88,380 Fiscal agency department 129 183 128, 340 245,280 General 53 ]09 79, 000 152,100 Total 567 1,132 831,540 1,677,252 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PERSONNEL A^D SALARIES. 275 SALARIES OF OFFICERS AND EMPLOYEES OF THE FEDERAL RESERVE BOARD AS OF DEC. 31, 1920. OFFICE OF THE SECRETARY. W. W. Hoxton, secretary $10, 000. 00 W. L. Eddy, assistant secretary 4, 200. 00 Staff: 1 at $1,800 1, 800. 00 $l 000. 00 6j OFFICE OF THE ASSISTANT TO GOVERNOR. R. G. Emerson, assistant to governor 6, 500. 00 Staff: 1 at $4,000 4, 000. 00 1 at $3,600 3, 600. 00 1 at $2,930 2, 930. 00 1 at $2,800 2, 800. 00 1 at $2,565 2, 565. 00 1 at $2,330 2, 330, 00 1 at $2,200 2. 200. 00 1 at $2,040 2, 040. 00 1 at $2,080 2, 080. 00 1 at $2,000 2, 000. 00 4 at $1,905 7, 620. 00 6 at $1,730 10, 380. 00 6 at $1,500 9, 000. 00 1 at $1,465 1, 465. 00 1 at $1,440 1,440. 00 1 at $1,260 1, 260. 00 1 at $1,200 1, 200. 00 2 at $720 1, 440. 00 1 at $360 (part-time employee) 360. 00 1 at $120 (part-time employee) 120. 00 67,330.00 OFFICE OF GENERAL COUNSEL. W. S. Logan, general counsel 10,000. 00 W. B. Angell, assistant counsel 6, 000. 00 Walter Wyatt, assistant counsel 4, 800. 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 $1,920 1, 920. 00 1 at $1,800 1, 800. 00 32,170.00 FISCAL AGENT. W. M. Imlay 4,200.00 Staff: 1 at $1,540 1, 540. 00 5, 740. 00 ARCHITECTS. A. B. Trowbridge, consulting architect 6, 666. 66 O. W. Ten Eyek, assistant architect 4,000. 00 10,666. 66 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

276 ANNUAL REPORT FEDERAL RESERVE BOARD. OFFICES OF MEMBERS OF THE BOARD. Staff: 1 at $2,740 $2, 740. 00 2 at $2,500 5, 000. 00 1 at $2,400 2, 400. 00 1 at $2,250 2, 250. 00 1 at $2,000 2,000. 00 1 at $1,800 ], 800. 00 1 at $1,680 1, 680. 00 $17, 870. 00 DIVISION OF REPORTS AND STATISTICS. E. L. Smead, chief of division 4, 800. 00 Staff: 1 at $3,300 3, 300. 00 1 at $2,800 2, 800. 00 1 at $2,665 2, 665. 00 1 at $2,400 2, 400. 00 1 at $2,240 2, 240. 00 7 at $1,905 13, 335. 00 1 at $1,760 1, 760. 00 2 at $1,665 3, 330. 00 3 at $1,600 4, 800. 00 4 at $1,560 6, 240. 00 1 at $1,465 1, 465. 00 4 at $1,440 5, 760. 00 1 at $1,400 1, 400. 00 1 at $1,340 1, 340. 00 1 at $1,320 1, 320. 00 5 at $1,200 6, 000. 00 1 at $1,165 1,165. 00 1 at $1,160 1,160. 00 2 at $1,080 2,160. 00 69,440.00 STATISTICIAN. Morris Jacobson, statistician 7, 500. 00 E. A. Goldenweiser, assistant statistician 4, 200. 00 Staff: 1 at $2,400 2,400. 00 2 at $1,800 3, 600. 00 1 at $1,730 1, 730. 00 1 at $1,680 1, 680. 00 1 at $1,560. 1, 560. 00 1 at $920 920. 00 23,590.00 DIVISION OF EXAMINATION. James F. Herson, chief of division and chief Federal Reserve examiner 9, 000. 00 Examiners: W. J. Donald 5, 500. 00 James Buchanan, jr 5, 000. 00 G. A. Augherton 4,000. 00 R. M. Chapman 3, 600. 00 27,100.00 Assistant examiners: 1 at $3,800 3, 800. 00 2 at $3,600 7, 200. 00 1 at $3,300 3,300. 00 5 at $3,000 15, 000. 00 4 at $2,700 10, 800. 00 1 at $2.200 2, 200. 00 42,300.00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PERSONNEL AND SALARIES. 277 Office staff: 1 at $1,730 $1, 730. 00 1 at $1,500 1, 500. 00 1 at $1,465 1, 465. 00 1 at $1.080 1, 080. 00 $5,775.00 75, 175. 00 DIVISION OF ANALYSIS AND RESEARCH. IL Parker Willis, director, 6, 000. 00 W. H. Steiner, assistant director 4, 000. 00 Staff: 3 at $3,000 9, 000. 00 1 at $2,750 2, 750. 00 1 at $2,500 2, 500. 00 1 at $2,400 2, 400. 00 1 at $2,100 2,100. 00 1 at $1.800 1, 800. 00 1 at $1,680 1, 680. 00 1 at $1,600 1, 600. 00 4 at $1,560 6, 240. 00 3 at $1,500 4, 500. 00 2 at $1,440 2, 880. 00 2 at $1,200 2, 400. 00 49,850.00 DIVISION OF FEDERAL RESERVE ISSUE AND REDEMPTION. Willard E. Buell. chief of division 3, 500. 00 Staff: 1 at $2,500 2, 500. 00 1 at $2,040 2, 040. 00 1 at $1,880 1, 880. 00 1 at $1,740 1, 740. 00 1 at $1,620 1, 620. 00 8 at $1,500 12, 000. 00 15 at $1,400 21, 000. 00 3 at $1,380 4,140. 00 9 at $1,320 11, 880. 00 3 at $1.260 3, 780. 00 8 at $1,200 9, 600. 00 1 at $360 360. 00 __ 76? 040. 00 RAILWAY LOAN ADVISORY COMMITTEE. S. M. Stellwagen, secretary 6, 000. 00 Staff: 1 at $1,800 1, 800. 00 1 at $1.640 1, 640. 00 9 440. 00 EMPLOYEES DETAILED. Detailed to National Bank Redemption Division, office of the Comptroller of the Currency : 32 at $1,040 (currency counters) 33, 280. 00 2 at $1,020 (laborers) 2, 040. 00 35.320.00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

278 ANNUAL REPORT FEDERAL RESERVE BOARD. MESSENGERS. 2 at $1,340 $2, 680. 00 1 at $1,200 1, 200. 00 7 at $1,160 8,120. 00 $12, 000. 00 CHARWOMEN. 3 at $240 720. 00 Total 501, 351. 66 SALARIES OF NATIONAL BANK EXAMINERS AS OF DEC. 31, 1929. Henry B. Davenport, assigned as Chief, Examining Division, Comptroller's Office $3, 500 SUPERVISING EXAMINERS. Districts Nos. 1 and 2—E. Willey Stearns $5,500 Districts Nos. 3 and 4—Oliver W. Birckhead 4, 200 Districts Nos. 5 and 6—R. Gordon Finney 6, 000 Districts Nos. 7 and 9—J. L. Kennedy 5, 000 Districts Nos. 8 and 10—E. H. Gough 5, 500 District No. 11—David Murphy 5, 000 District No. 12—Harry L. Machen 6, 500 — • 37,700 DISTRICT NO. 1—BOSTON. (400 national member banks.) Daniel C. Mulloney, chief examiner 10, 000 1 examiner, at $5,000; 3 examiners, at $4,200; 1 examiner, at $3,900; 1 examiner, at $3,000; 1 examiner, at $2-,400 26, 900 36,900 DISTRICT NO. 2—NEW YORK. (651 national member banks.) Sherrill Smith, chief examiner 16,000 2 examiners, at $6,000; 2 examiners, at $3,900; 2 examiners, at $3,600; 1 examiner, at $3,300; 2 examiners, at $3,000; 2 examiners, at $2,700; 2 examiners, at $2,400 46, 500 62 500 ? DISTRICT NO. 3—PHILADELPHIA. (653 national member banks.) Stephen L. Newnham, chief examiner 10,000 1 examiner, at $5,000; 1 examiner, at $4,500; 1 examiner, at $4,000; 1 examiner, at $3,900; 1 examiner, at $3,600; 3 examiners, at $3,300; 1 examiner, at $3,000; 1 examiner, at $2,700 36, 600 46,600 DISTRICT NO. 4—CLEVELAND. (765 national member banks.) William J. Schechter, chief examiner 7, 500 1 examiner, at $5,000; 2 examiners, at $4,800; 2 examiners, at $4,500; 2 examiners, at $3,900; 1 examiner, at $3,300; 3 examiners, at $3,000; 1 examiner at $2,700; 1 examiner at $2,400 48, 800 56, 300 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PERSONNEL AND SALARIES. 279 DISTRICT NO. 5—RICHMOND. (555 national member banks.) J. K. Doughton, chief examiner $8, 500 1 examiner, at $6,500; 1 examiner, at $4,500; 1 examiner, at $3,900; 4 examiners, at $3,600; 1 examiner, at $3,300; 2 examiners, at $3,000; 2 examiners, at $2,400 43, 400 , $51,900 DISTRICT NO. 6—ATLANTA. (376 national member banks.) J. William Pole, chief examiner 7, 500 1 examiner, at $5,000; 2 examiners, at$4,500; 1 examiner, at $4,200; 1 examiner, at $3,900; 2 examiners, at $3,300; 2 examiners, at $3,000 34, 700 42,200 DISTRICT NO. 7—CHICAGO. (1,065 national member banks.) Silas H. L. Cooper, chief examiner 12,000 1 examiner, at $5,000; 7 examiners, at $4,200; 2 examiners, at $3,300; 2 examiners, at $2,700; 3 examiners, at $2,400 53, 600 65,600 DISTRICT NO. 8—ST. LOUIS. (481 national member banks.) John S. Wood, chief examiner 7,000 2 examiners, at $5, 000; 1 examiner, at $3,900; 1 examiner, at $3,600; 1 examiner, at$3,000; 1 examiner, at$2,700; 3 examiners, at$2,400 30,400 37,400 DISTRICT NO. 9—MINNEAPOLIS. (885 national member banks.) Fred Brown, chief examiner 8,500 1 examiner, at $5,000; 1 examiner, at $4,800; 1 examiner,at $4,200; 1 examiner, at $4,000; 1 examiner, at $3,500; 2 examiners, at $3,300; 1 examiner, at $3,000; 2 examiners, at $2,700; 2 examiners, at $2,400 41,400 49,900 DISTRICT NO. 10—KANSAS CITY. •(1,032 national member banks.) Luther K. Roberts, chief examiner 7, 000 1 examiner, at $5,000; 1 examiner, at $4,800; 2 examiners, at $4,500; 1 examiner at $3,900; 3 examiners, at $3,300; 2 examiners, at $3,000; 2 examiners, at $2,700; 1 examiner, at $2,400 46,400 — 53,400 DISTRICT NO. 11—DALLAS. (663 national member banks.) Richard H. Collier, chief examiner 8, 500 3 examiners at $4,000; 2 examiners at $3,900; 1 examiner at $3,000; 2 examiners at $2,400 27,600 — — 36,100 45525°—21 19 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

280 ANNUAL REPORT FEDERAL RESERVE BOARD. DISTRICT NO. 12;—SAN FRANCISCO. (647 national member banks.1) Horace R. Gaither, chief examiner $9, 000 1 examiner at $6,000; 1 examiner at $5,100; 1 examiner at $4,500; 3 examiners at $4,200; 2 examiners at $3,900; 1 examiner at $3,600; 2 examiners at $3,300; 1 examiner at $2,700 48, 900 — — $57,900 Grand total of annual salaries of all examiners on Dec. 31, 1920 637,900 RECAPITULATION. Examining staff: Chief examiners and supervising examiners— At $16,000 per annum 1 At $12,000 per annum 1 At $10,000 per annum 2 At $9,000 per annum. 1 At $8,500 per annum 3 At $7,500 per annum 2 At $7,000 per annum 2 At $6,500 per annum 1 At $6,000 per annum 1 At $5,500 per annum 2 At $5,000 per annum 2 At $4,200 per annum 1 Total chief examiners (12) and supervising examiners (7) 19 Salaries, chief examiners and supervising examiners 149, 200 Other examiners: At $6,500 per annum 1 At $6,000 per annum 3 At $5,100 per annum 1 At $5,000 per annum 9 At $4,800 per annum 4 At $4,500 per annum 9 At $4,200 per annum 15 At $4,000 per annum 5 At $3,900 per annum 14 At $3,600 per annum 10 At $3,500 per annum 1 At $3,300 per annum 17 At $3,000 per annum 16 At $2,700 per annum 12 At $2,400 per annum 17 Total other examiners 134 Salaries, other examiners 488, 700 Total examining staff 153 Total salaries 637, 900 i Includes the 2 national nonmember banks in the Hawaiian Territory and the 2 national nonmember and 1 national member banks in Alaska. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORY. 281 DIRECTORY OF THE FEDERAL RESERVE BOARD AND FED- ERAL RESERVE BANKS. FEDERAL RESERVE BOARD. EX OFFICIO MEMBERS. W. P. G. HARDING, Governor. EDMUND PLATT, Vice Governor. DAVID F. HOUSTON, Secretary of the Treasury, Chairman. ADOLPH C. MILLER. CHARLES S. HAMLIN. JOHN SKELTON WILLIAMS, Comptroller of the Currency. D. C. WILLS. W. W. HOXTON, Secretary. WALTER S. LOGAN, General Counsel. W. L. EDDY, Assistant Secretary. R. (3r. EMERSON, Assistant to Governor. W. M. IMLAY, Fiscal Agent. II. PARKER WILLIS, J. F. HERSON, Director, Division of Analysis and Chief, Division of Examination and F jearch, Chief Federal Reserve Examiner. M. JAC* ON, Statistician. J. E. CRANE, E. L. Si AD, Acting Director, Division of Foreign Chief, Division of Reports and Sta- Exchange. tistics. OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS.1 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: Edward S. Kennard Rumford, Me Dec. 31,1921 F. S. Chamberlain New Britain, Conn Dec. 31,1922 Thomas P. Beal Boston, Mass Dec. 31,1923 Class B: Chas. G. Washburn Worcester, Mass Dec. 31,1921 Edmund R. Morse Proctor, Vt Dec. 31,1922 Philip R. Allen East Walpole, Mass Dec. 31,1923 Class C: Allen Hollis Concord, N. II Dec. 31,1921 Jesse H. Metcalf Providence, R.I Dec. 31,1922 Frederic H. Curtiss Boston, Mass Dec. 31,1923 1 Includes directors elected in December, 1920, for the 3-year term beginning Jan. 1,1921. 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: Charles Smith Oneonta, N. Y Dec. 31.1921 James S. Alexander I New York, N. Y Dec. 31.1922 R. H. Treman Ithaca, N. Y. Dec. 31.1923 Class B: L. R. Palmer Croton-on-Hudson, N. Y Dec. 31,1921 Charles A. Stone New York, N. Y Dec. 31.1922 Richard H. Williams... Madison, N. J Dec. 31.1923 Class C: George Foster Peabody. Lake George, N. Y Dec. 31,1921 Pierre Jay New York, N. Y Dec. 31.1922 W. L. Saunders do Dec. 31.1923 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

282 ANNUAL REPORT FEDERAL RESERVE BOARD. OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS—Continued. DISTRICT NO. 2—FEDERAL RESERVE BANK OF NEW YORK—Continued. BUFFALO BRANCH OF THE FEDERAL RESERVE BANK OF NEW YORK. R. M. Gidney, manager. Director. Residence. Term expires. Frank L. Bartlett. Clean, N. Y Dec. 31,1921 Clifford Hubbell Buffalo, N. Y Do. E. J. Barcalo ....do Do. Elliott C. McDougal... do. . Do Harry T. Ramsdell .do Do. Thomas E. Lannin Rochester, N. Y Do. DISTRICT NO. 3—FEDERAL RESERVE BANK OF PHILADELPHIA. Richard L. Austin, chairman and Federal Reserve agent. H. B. Thompson, deputy chairman. George ' ; W. Norris, governor. Class A: M Fr . a J n . c M is u D rp o h u y g las n ..f ) , . . ^ . C W la il r k k e s s - G B r a e r e r n e , , P P a a . . . . . D D e e c c . . 3 31 1 . . 1 1 9 9 2 2 2 1 Joseph Wayne, jr i. •.-;. Philadelphia, Pa. Dec. 31,1923 Class B: Chas. K. Haddon Camden, N. J Dec. 31,1921 Alba B. Johnson Philadelphia, Pa Dec. 31.1922 Edwin S. Stuart do Dec. 31.1923 Class C: Charles C. Harrison Philadelphia, Pa. Dec. 31,1921 H. B. Thompson Wilmington, Del.. Dec. 31,1922 Richard L. Austin Philadelphia, Pa.. Dec. 31,1923 DISTRICT NO. 4—FEDERAL RESERVE BANK OF CLEVELAND. Lewis B. Williams, deputy chairman and acting Federal Reserve agent. E. R. Fancher, governor. Class A: O.N.Sams Hillsboro, Ohio Dec. 31.1921 Chess Lamberton Franklin, Pa Dec. 31.1922 Robert Wardrop Pittsburgh, Pa Dec. 31.1923 Class B: John Stambaugh ; Youngstown, Ohio. Dec. 31.1921 R. P. Wright Erie, Pa. Dec. 31.1922 T. A. Combs Lexington, Ky. Dec. 31.1923 Class C: H.P.Wolfe Columbus, Ohio. Dec. 31.1921 Lewis B. Williams Cleveland, Ohio.. Dec. 31.1922 PITTSBURGH BRANCH OF THE FEDERAL RESERVE BANK OF CLEVELAND. Geo. DeCamp, manager. Chas. W. Brown. Pittsburgh, Pa.. Dec. 31,1921 James D. Gallery. .do. Do. Harrison Nesbit.. ..do. Do. R. B. Mellon ..do. Do. Geo. DeCamp ..do. Do. CINCINNATI BRANCH OF THE FEDERAL RESERVE BANK OF CLEVELAND. L. W. Manning, manager. Judson Harmon Cincinnati, Ohio. Dec. 31,1921 Charles A. Hinscli | do. Do. L. W. Manning i do.. Do. W. S. Rowe I do. Do. George D. Crabbs do. Do. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORY. 283 OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANES—Continued. DISTRICT NO. 5—FEDERAL RESERVE BANK OF RICHMOND. Oaldwell Hardy, chairman and Federal Reserve agent. James A. Moncure, deputy chairman. George J. Seay, governor. Director. Residence. Term expires. Class A: Chas. E. Riernan Baltimore, Md. Dec. 31.1921 J. F.Bruton Wilson,, N.C. Dec. 31.1922 L. E. Johnson || AAlldde rson, WW. Va Dec. 31.1923 Class B: I Eddmuunndd Struddwc ick jj Richmond,, Va Dec. 31.1921 JJ ames FF. OOyyster t W h it i WashingDton, D. C Dec. 31.1922 DD. RR. CCokekr H a r t s v i l l e, S. C Dec. 31.1923 Class C: Howard Bruce Baltimore, Md Dec. 31,1921 James A. Moncur Richmond, Va Dec. 31,1922 Caldwell Hardy do Dec. 31,1923 BALTIMORE BRANCH OF THE FEDERAL RESERVE BANK OF RICHMOND. M. M. Prentis, manager. M. M. Prentis Baltimore, Md. Dec. 31,1921 Chas. C. Homer, j r .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: JohnK. Ottley.. Atlanta, Ga... Dec.31.1921 Oscar Newton... Jackson, Miss. Dec.31.1922 P. R. Kittles.... Sylvania, Ga.. Dec.31.1923 Class B: J. A. McCrary... Decatur, Ga Dec.31.1921 W. H. Hartford. Nashville, Tenn... Dec.31.1922 LeonC. Simon.. New Orleans, La.. Dec.31.1923 Class C: Edw. T. Brown. Atlanta, Ga. Dec.31.1921 W.H. Kettig... Birmingham, Ala. Dec.31.1922 Jos. A. McCord.. Atlanta, Ga... Dec.31.1923 NEW ORLEANS BRANCH OF THE FEDERAL RESERVE BANK OF ATLANTA. P. H. Saunders, chairman. Marcus Walker, manager. P. H. Saunders.. New Orleans, La.. Dec. 31,1921 Albert P. Bush. . Mobile, Ala Do. F. W. Foote Hattiesburg, Miss. Do. J. E.Bouden,jr.. New Orleans, La.. Do. R. S.Hecht .do. Do. H. B. Lightcap.. Jackson, Miss Do. LeonC. Simon... New Orleans, La.. Do. BIRMINGHAM BRANCH OF THE FEDERAL RESERVE BANK OF ATLANTA. W. H. Kettig, chairman. A. E. Walker, manager. W.H. Kettig Birmingham, Ala Dec. 31,1921 Oscar Wells do Do. T. O. Smith do Do. W. W. Crawford do Do. John H. Frye do Do. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

284 ANNUAL REPORT FEDERAL RESERVE BOARD. OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS—Continued. DISTRICT NO. 6—FEDERAL RESERVE BANK OF ATLANTA—Continued. JACKSONVILLE BRANCH OF THE FEDERAL RESERVE BANK OF ATLANTA. John C. Cooper, chairman. Geo. R. De Saussure, manager. Director. Residence. Term expires. John C. Cooper Jacksonville, Fla Dec. 31,1921 Fulton Saus^v ..do.. Do. E. W. Lane do Do. Giles L. Wilson . . . ..do Do. Bion H. Barnett.. . do Do. NASHVILLE BRANCH OF THE FEDERAL RESERVE BANK OF ATLANTA. W. H. Hartford, chairman. J. B. McNamara, manager. W.H.Hartford. Nashville, Tenn. Dec. 31,1921 P. N.Davis ....do Do/ J. E.Caldwell... do Do. T. A. Embry Winchester, Tenn-. Do. E. A. Lindsey.. Nashville, Tenn.... Do. 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: George M. Reynolds Chicago, 111 Dec. 31,1921 Charle? H. McNider Mason City, Iowa Dec. 31,1922 E. L. Johnson Waterloo, Iowa Dec. 31,1923 Class B: A. H.Vogel Milwaukee, Wis Dec. 31,1921 John W. Blodgett Grand Rapids, Mich. Dec. 31,1922 Albert R. Erskine South Bend, Ind Dec. 31,1923 Class C: William A. Heath Evanston, III Dec. 31,1921 Frank C. Ball Mnncie, Ind Dec. 31,1922 James Simpson Chicago, 111. Dec. 31,1923 DETROIT BRANCH OF THE FEDERAL RESERVE BANK OF CHICAGO, R. B. Locke, manager. John Ballantyne... Detroit, Mich, Dec. 31,1921 Emory W. Clark... .do Do. Julias'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: J. C. Utterback Paducah, Ky. Dec. 31,1921 Sam A. Ziegler Albion, 111. Dec. 31,1922 John G. Lonsdale St. Louis, Mo. Dec. 31,1923 Class B: Rolla Wells ..do.. Dec. 31,1921 W. B. Plunkett Little Rock, Ark. Dec. 31,1922 Le Roy Percy Greenville, Miss.. Dec. 31,1923 Class C: Wm. McC. Martin St. Louis, Mo Dec. 31,1921 C. P. J. Mooney Memphis, Tenn Dec. 31,1922 John W. Boehne Evansville, Ind Dec. 31,1923 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORY. 285 OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS—Continued. DISTRICT NO. 8—FEDERAL RESERVE BANK OF ST. LOUIS—Continued. LOUISVILLE BRANCH OF THE FEDERAL RESERVE BANK OF ST. LOUIS. W. P. Kincheloe, manager. Director. Residence. Term expires. Geo. W. Norton Louisville, Ky Dec. 31,1921 W. C. Montgomery Elizabethtown, Ky. Do. W. P. Kincheloe Louisville, Ky Do. F. M. Sackett .do. Do. Embry L. Swearingen. .do. Do. MEMPHIS BRANCH OF THE FEDERAL RESERVE BANK OF ST. LOUIS. John J. Heflin, manager. R. Brinkley Snowden Memphfa, Term Dec. 31,1921 John D. McDowell .do Do. John J Heflin do Do. T. K. Riddick ..do . Do. S. E. Ragland do Do. LITTLE ROCK BRANCH OF THE FEDERAL RESERVE BANK OF ST. LOUIS. A. F. Bailey, manager. 0. A. Pratt Little Rock, Ark. Dec. 31,1921 J. E. England, jr .do Do. A. F. Bailey ....do Do. Moorhead Wright ....do Dc. 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: W. C. McDowell Marion, N. Dak Dec. 31,1)21 Theodore Wold Minneapolis, Minn. Dec. 31.1922 J. C. Bassett Aberdeen, S. Dak.. Dec. 31.1923 Class B: F. P. Hixon La Crosse, Wis. Dec. 31,1921 F. R. Bigelow St. Paul, Minn. Deo. 31,1922 N. B. Holter Helena, Mont.. Dec. 31,1923 Class C: W. H. Lightner St. Paul, Minn Dec. 31.1921 C. H. Benedict Lake Linden, Mich. Dec. 31.1922 John H. Rich Minneapolis, Minn.. Dec. 31.1923 DISTRICT NO. 10—FEDERAL RESERVE BANK OF KANSAS CITY. AsaE. Ramsay, chairmanand Federal Reserve agent. F. W. Fleming, deputy chairman. J. Z. Miller, jr., governor. Class A: J. C. Mitchell Denver, Colo Dec. 31,1921 W. J. Bailey.. Atchison, Kans. Dec. 31,1922 E. E. Mullaney Hill City, Kans. Dec. 21,1923 Class B: T. C. Byrne Omaha, Nebr Dec. 31.1921 M. L. McClure Kansas City, Mo. Dec. 31.1922 Harrv W. Gibson Muskogee, Okla.. Dec. 31.1923 Class C: * R. H. Malone i Denver, Colo Dec. 31.1921 F. W. Fleming | Kansas City., Mo Dec. 31.1922 Asa E. Ramsay I do '. Dec. 31,1923 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

286 ANNUAL REPORT FEDERAL RESERVE BOARD. OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS—Continued. DISTRICT NO. 10—FEDERAL RESERVE BANK OF KANSAS CITY—Continued. DENVER BRANCH OF THE FEDERAL RESERVE BANK OF KANSAS CITY. C. A. Burkhardt, manager. Director. Residence. Term expires., C. C. Parks Denver, Colo Dec. 31,1921 A. C. Foster .. ..do Do. C. A. Burkhardt do Do. John Evans do . Do. Alva B. Adams Pueblo, Colo Do. OMAHA BRANCH OF THE FEDERAL RESERVE BANK OF KANSAS CITY. L. H. Earhart, manager. Luther Drake Omaha, Nebr .. Dec 31 1921 George E. Abbott Cheyenne, Wyo Do. L. H. Earhart Omaha, Nebr. Do P. L. Hall Lincoln, Nebr Do R. 0. Marnell Nebraska City, Nebr Do. OKLAHOMA CITY BRANCH OF THE FEDERAL RESERVE BANK OF KANSAS CITY. C. E. Daniel, manager. Wm. Mee Oklahoma City, Okla... Dec. 31 1921 E. K. Thurmond do Do. Dorset Carter do Do. T. P. Martin, jr.. do Do C E Daniel do 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: John T. Scott Houston, Tex Dec. 31,1921 B. A. McKinney Dallas, Tex Dec. 31,1922 Ed. Hall Bryan, Tex Dec. 31,1923 Class B: Frank Kell Wichita Falls, Tex Dec. 31,1921 Marion Sansom Fort Worth Tex Dec. 31,1922 J. J. Culbertson Paris, Tex Dec. 31,1923 Class C: W B Newsome Dallas, Tex Dec. 31,1921 H. 0. Wooten Abilene. Tex Dec. 31,1922 W. F. Ramsey Dallas, Tex Dec. 31,1923 EL PASO BRANCH OF THE FEDERAL RESERVE BANK OF DALLAS. W. C. Weiss, manager. U.S.Stewart \ El Paso, Tex j Dec. 31,1921 A.F.Kerr : do I Do. W. C. Weiss do ! Do. W. W. Turney I do ! Do. A. P. Coles I do I Do. HOUSTON BRANCH OF THE FEDERAL RESERVE BANK OF DALLAS. E. F. Gossett, manager. Frank Andrews .. Houston, Tex Dec. 31,1921 Guy M Bryan do Do. do Do. R M Farrar . ..do Do. J J Davis Galveston, Tex Do. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORY. 287 OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS—Continued. DISTRICT NO. 12—FEDERAL RESERVE BANK OF SAN FRANCISCO. John Perrin, chairman and Federal Reserve agent. Walton N. Moore, deputy chairman. John IT. Calkins, governor. Director. Residence. Term expires. Class A: M. A. Buchan Palo Alto, Calif Dec. 31,1921 C. K. Mclntosh San Francisco, Calif Dec. 31,1922 John Willis Baer Pasadena, Calif .... Dec. 31,1923 Class B: Jno. A. McGregor San Francisco, Calif Dec. 31,1921 Elmer H. Cox Madera Calif Dec. 31,1922 A. B. C. Dohrmann San Francisco, Calif Dec. 31,1923 Class C: Walton N. Moore do Dec. 31,1921 Wm. Sproule . . do Dec. 31,1922 John Perrin do Dec. 31,1923 SPOKANE BRANCH OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO. W. L. Partner, manager. D. W.Twohy... Spokane, Wash Dec. 31,1921 R. L. Rutter.... do Do. W.L. Partner.. do ! Do. Peter McGregor. Hooper, Wash j Do. G.I.Toevs Spokane, Wash I Do. SEATTLE BRANCH OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO. C. R. Shaw, manager. M. F. Backus Seattle, Wash. Dec. 31,1921 M. A. Arnold do Do. C.R.Shaw i do Do. C.H.Clarke do Do. Charles E. Peabody | do Do. PORTLAND BRANCH OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO. Frederick Greenwood, manager. Edward Cookingham Portland, Oreg. Dec. 31,1921 J. C Ainsworth do Do Frederick Greenwood do Do. Nathan Strauss do Do. SALT LAKE CITY BRANCH OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO. R. B. Mother well, manager. L. H. Farnsworth Salt Lake City, Utah., Dec. 31,1921 R. B. Mother well .do. Do. Chapin A. Day Ogden, Utah Do. G.G.Wright Salt Lake City, Utah. Do. Lafayette Hanchett do Do. LOS ANGELES BRANCH OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO. C. J. Shepherd, manager. A. J. Waters Los Angeles, Calif.. Dec. 31,1921 J.F.Sartori .do Do. C.J. Shepherd .do. Do. I.B. Newton ..do. Do. Henry M. Robinson ..do. Do. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

288 ANNUAL REPORT FEDERAL RESERVE BOARD. FEDERAL ADVISORY COUNCIL. [Elected for year 1921.J District No. 1.—Philip Stockton, president Old Colony Trust Co., Boston, Mass. District No. 2.—Paul M. Warburg, president American Acceptance Council, New York City. District No. 3.—L. L. Rue, president Philadelphia National Bank, Philadelphia, Pa. District No. 4.—Corliss E. Sullivan, vice president Central National Bank Savings & Trust Co., Cleveland, Ohio. District No. 5.—Joseph G. Brown, president Citizens National Bank, Raleigh, N. C. District No. 6.—Edward W. Lane, president Atlantic National Bank, Jacksonville, Fla. District No. 7.—John J. Mitchell, chairman Illinois Trust & Savings Bank, Chicago, District No. 8.—F. 0. Watts, president First National Bank, St. Louis, Mo. District No. 9.—C. T. Jaffray, president First National Bank, Minneapolis, Minn. District No. 10.—E. F. Swinney, president First National Bank, Kansas City, Mo. District No. 11.—R. L. Ball, chairman National Bank of Commerce, San Antonio, Tex. District No. 12.—A. L. Mills, president First National Bank, Portland, Oreg. REGULATIONS OF THE FEDERAL RESERVE BOARD. WASHINGTON, October 6, 1920. The Federal Reserve Board transmits herewith a new issue of all its regulations of 1917 applicable to member banks. Regulation L, relating to "Interlocking bank directorates under the Clayton Act," is entirely new. Regulation F of the new series supersedes Regulation F, Series of 1919, and Regulation K of the new series supersedes Regulation K, Series of 1920, issued in March of the present year. The other regulations of the new series supersede the corresponding regulations of the 1917 series. Regulations A, B, and I have been materially amended. Regulation C has been amended only by the insertion of two sentences in the first paragraph with reference to the question of when trust receipts and bills of lading drafts may be considered "actual security" within the meaning of section 13 of the Federal Reserve Act. There have been no amendments to Regulation D with the exception of two changes intended to make clear that in the case of *' time deposits, open accounts,'' the 30 days' written notice of withdrawal must be actually required by the bank, whereas in the case of "savings accounts" and "time certificates of deposit" the requirement of notice will be complied Avith if the bank reserves the right to demand 30 clays' written notice of withdrawals. The only substantial change in Regulation K is an amendment to the paragraph entitled "Acceptances," which permits corporations organized under the provisions of section 25a of the Federal Reserve Act to accept, subject to substantially the same conditions as are imposed Jby law upon member banks, drafts drawn by banks or bankers located 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 those countries, dependencies, or possessions. There have been no substantial changes in Regulations F and H, and Regulations E and G are identically the same as in the 1917 series. Regulation J, relating to "Check clearing and collection," has not been changed in substance except that certain provisions have been struck out which are no longer applicable. Nothing has been added to this regulation and it contains only very general provisions. At the present time conditions vary so much in the different districts that it is impracticable to formulate detailed regulations on this subject to be applied in all districts. The Federal Reserve Board will consider a revision of this regulation if and when future developments make it seem practicable and advisable to issue a more comprehensive regulation. Instructions which concern only Federal Reserve Agents or Federal Reserve Banks will be covered in separate letters or regulations, as in the past. W. P. G. HARDING, Governor. W. T. CHAPMAN, Secretary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REGULATIONS OF THE BOARD. 289 REGULATION A, SERIES OF 1920. (Superseding Regulation A of 1917.) REDISCOUNTS UNDER SECTION 13. A. NOTES, DRAFTS, AND BILLS OP EXCHANGE. I. General statutory provisions. Any Federal Reserve Bank may discount for any of its member banks any note, draft, or bill of exchange, provided— (a) It has a maturity at the time of discount of not more than 90 days, exclusive of days of grace; but if drawn or issued for agricultural purposes or based on live stock, it may have a maturity at the time of discount of not more than six months, exclusive of days of grace. (6) It arose out of actual commercial transactions; that is, it must be a note, draft, or bill of exchange which has been issued or drawn for agricultural, industrial, or commercial purposes, or the proceeds of which have been used or are to be used for such purposes. (c) It was not issued for carrying or trading in stocks, bonds, or other investment securities, except bonds and notes of the Government of the United States. (d) The aggregate of notes, drafts, and bills bearing the signature or indorsement of any one borrower, whether a person, company, firm, or corporation, rediscounted for any one member bank, whether State or National, shall at no time exceed 10 per centx of the unimpaired capital and surplus of such bank; but this restriction shall not apply to the discount of bills of exchange drawn in good faith against actually existing values. (e) It is indorsed by a member bank. (/) It conforms to all applicable provisions of this regulation. No Federal Reserve Bank may discount for any member State bank or trust company any of the notes, drafts, or bills of any one borrower who is liable for borrowed money to such State bank or trust company in an amount greater than 10 per cent2 of the capital and surplus of that State bank or trust company, but in determining the amount of money borrowed from such State bank or trust company the discount of bills of exchange drawn in good faith against actually existing value and the discount of commercial or business paper actually owned by the person negotiating the same shall not be included. Any Federal Reserve Bank may make advances to its member banks on their promissory notes for a period not exceeding 15 days, provided that they are secured by notes, drafts, bills of exchange, or bankers' acceptances which are eligible for rediscount or for purchase by Federal Reserve Banks, or by the deposit or pledge of bonds or,notes of the United States, or bonds of the War Finance Corporation. II. General character of notes, drafts, and bills of exchange eligible. The Federal Reserve Board, exercising its statutory right to define the character of a note, draft, or bill of exchange eligible for rediscount at a Federal Reserve Bank, has determined that— (a) It must be a note, draft, or bill of exchange which has been issued or drawn, or the proceeds of which have been used or are to be used in the first instance, in producing, purchasing, carrying, or marketing goods 3 in one or more of the steps of the 1 Under the terms of section 11 (m) as amended by the act of Mar. 3,1919, a Federal Reserve Bank may, until Dec. 31, 1920, rediscount for any member bank, whether State or National, notes, drafts, and bills bearing the signature or indorsement of any one borrower in an amount not to exceed 20 per cent of the member bank's capitaland surplus, provided that the excess over and above 10 per cent be secured by not less than a like face amount of bonds or notes of the United States issued since Apr. 24, 1917, or certificates of indebtedness of the United States. 2 Under the terms of section 11 (m) as amended by the act of Mar. 3,1919, a Federal Reserve Bank may, until Dec. 31,1920, rediscount for a member State bank or trust company paper of any one borrower secured by not less than a like face amount of bonds or notes of the United States issued since Apr. 24, 1917, or certificates of indebtedness of the United States, even though such State bank or trust company may already have loaned to the borrower under his regular line of credit in excess of the 10 per cent limit defined above. If, however, the member State bank or trust company has loaned to one borrower in excess of that 10 per cent limit under his regular line of credit the Federal Reserve Bank can not rediscount for that State bank or trust company any of the paper of that borrower taken under that regular line of credit, but may rediscount any paper so secured by Government obligations of the kinds specified up to an amount not in excess of 20 per cent of the capital and surplus of such State bank or trust company. 3 When used in this regulation the word "goods" shall be construed to include goods, wares, merchandise, or agricultural products, including live stock. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

290 ANNUAL REPORT FEDERAL RESERVE BOARD. process of production, manufacture, or distribution, or for the purpose of carrying or trading in bonds or notes of the United States. (6) It must not be a note, draft, or bill of exchange the proceeds of which have been used or are to be used for permanent or fixed investments of any kind, such as land, buildings, or machinery, or for any other capital purpose. (c) It must not be a note, draft, or bill of exchange the proceeds of which have been used or are to be used for investments of a purely speculative character or for the purpose of lending to some other borrower. (d) It may be secured by the pledge of goods or callateral of any nature, including paper, which is ineligible for rediscount, provided it (the note, draft, or bill of exchange) is otherwise eligible. III. Applications for rediscount. All applications for the rediscount of notes, drafts, or bills of exchange must contain a certificate of the member bank, in form to be prescribed by the Federal Reserve Bank, that, to the best of its knowledge and belief, such notes, drafts, or bills of exchange have been issued for one or more of the purposes mentioned in II (a), and, in the case of a member State bank or trust company, all applications must contain a certificate or guaranty to the effect that the borrower is not liable, and will not be permitted to become liable during the time his paper is held by the Federal Reserve Bank, to such bank or trust company for borrowed money in an amount greater than that specified in I above. IV. Promissory notes. (a) Definition.—A promissory note, within the meaning of this regulation, is defined as an unconditional promise, in writing, signed by the maker, to pay, in the United States, at a fixed or determinable future time, a sum certain in dollars to order or to bearer. (b) Evidence of eligibility and requirement of statements.—A Federal Reserve Bank must be satisfied by reference to the note or otherwise that it is eligible for rediscount. The member bank shall certify in its application whether the note offered for rediscount has been discounted for a depositor other than a bank or for a nondepositor and, if discounted for a bank, whether for a member or a nonmember bank. The member bank must also certify whether a financial statement of the borrower is on file with it. A recent financial statement of the borrower must be on file with the member bank in all cases, except with respect to any note discounted by a member bank for a depositor other than a bank or another member bank if— (1) It is secured by a warehouse, terminal, or other similar receipt covering goods in storage, or by bonds or notes of the United States; or (2) The aggregate of obligations of the borrower rediscounted and offered for rediscount at the Federal Reserve Bank by the member bank is less than a sum equal to 10 per cent of the paid-in capital of the member bank and is less than $5,000. The Federal Reserve Bank shall use its discretion in taking the steps necessary to satisfy itself as to eligibility. Compliance of a note with II (b) may be evidenced by a statement of the borrower showing a reasonable excess of quick assets over current liabilities. A Federal Reserve Bank may, in all cases, require the financial statement of the borrower to be filed with it. V. Drafts, bills of exchange, and trade acceptances. (a) Definition.—A draft or bill of exchange, within the meaning of this regulation, is defined as an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay in the United States, at a fixed or determinable future time, a sum certain in dollars to the order of a specified person; and a trade acceptance is defined as a draft or bill of exchange, drawn by the seller on the purchaser of goods sold,4 and accepted by such purchaser. (6) Evidence of eligibility and requirement of statements.—A Federal Reserve Bank shall take such steps as it deems necessary to satisfy itself as to the eligibility of the draft, bill, or trade acceptance offered for rediscount and may require a recent financial statement of one or more parties to the instrument. The draft, bill, or trade acceptance should be drawn so as to evidence the character of the underlying transaction, but if it is not so drawn evidence of eligibility may consist of a stamp or certificate affixed by the acceptor or drawer in a form satisfactory to the Federal Reserve Bank. 4 A consignment of goods or a conditional sale of goods can not be considered "goods sold" within the meaning of this clause. The purchase price of goods plus the cost of labor in effecting their installation may be included in the amount for which the trade acceptance is drawn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REGULATIONS OF THE BOARD. 291 VI. Six months' agricultural paper. (a) Definition.—Six months' agricultural paper, within the meaning of this regulation, is defined as a note, draft, bill of exchange, or trade acceptance drawn or issued for agricultural purposes, or based on live stock; that is, a note, draft, bill of exchange, or trade acceptance the proceeds of which have been used, or are to be used, for agricultural purposes, including the breeding, raising, fattening, or marketing of live stock, and which has a maturity at the time of discount of not more than six months, exclusive of days of grace. (b) Eligibility.—To be eligible for rediscount, six months' agricultural paper, whether a note, draft, bill of exchange, or trade acceptance, must comply with the respective sections of this regulation which would apply to it if its maturity were 90 days or less. B. BANKERS' ACCEPTANCES. (a) Definition.—A banker's acceptance within the meaning of this regulation is defined as a draft or bill of exchange, whether payable in the United States or abroad and whether payable in dollars or some other money, of which the acceptor is a bank or trust company, or a firm, person, company, or corporation engaged generally in the business of granting bankers' acceptance credits. (b) Eligibility .—A Federal Eeserve Bank may rediscount any such bill having a maturity at time of discount of not more than three months, exclusive of days of grace, which has been drawn under a credit opened for the purpose of conducting or settling accounts resulting from a transaction or transactions involving any one of the following: (1) The shipment of goods between the United States and any foreign country, or between the United States and any of its dependencies or insular possessions, or between foreign countries. While it is not necessary that shipping documents covering goods in the process of shipment be attached to drafts drawn for the purpose of financing the exportation or importation of goods, and while it is not essential, therefore, that each such draft cover specific goods actually in existence at the time of acceptance, nevertheless it is essential as a prerequisite to eligibility either (a) that shipping documents or a documentary export draft be attached at the time the draft is presented for acceptance, or (6) if the goods coArered by the credit have not been actually shipped, that there be in existence a specific and bona fide contract providing for the exportation or importation of such goods at or within a specified and reasonable time and that the customer agree that the accepting bank will be furnished in due course with shipping documents covering such goods or with exchange arising out of the transaction being financed by the credit. A contract between principal and agent will not be considered a bona fide contract of the kind required above, nor is it enough that there be a contract providing merely that the proceeds of the acceptance will be used only to finance the purchase or shipment of goods to be exported or imported. (2) The shipment of goods within the United States, provided shipping documents conveying security title are attached at the time of acceptance, or (3) The storage of readily marketable staples,5 provided that the bill is secured at the time of acceptance by a warehouse, terminal, or other similar receipt, conveying security title to such staples, issued by a party independent of the customer, and provided further that the acceptor remains secured throughout the life of the acceptance. In the event that the goods must be withdrawn from storage prior to the maturity of the acceptance or the retirement of the credit, a trust receipt or other similar document covering the goods, may be substituted in lieu of the original document, provided that such substitution is conditioned upon a reasonably prompt liquidation of the credit. In order to insure compliance with this condition it should be required, when the original document is released, either (a) that the proceeds of the goods will be applied within a specified time toward a liquidation of the acceptance credit or (b) that a new document, similar to the original one, will be resubstituted within a specified time, and a Federal Reserve Bank may also rediscount any bill drawn by a bank or banker in a foreign country or dependency or insular possession of the United States for the purpose of furnishing dollar exchange, as provided in regulation C, provided that it has a maturity at the time of discount of not more than three months, exclusive of days of grace. 5 A readily marketable staple within the meaning of these regulations may be denned as an article of commerce, agriculture, or industry of such uses as to make it the subject of constant dealings in ready markets with such frequent quotations of price as to make (a) the price easily and definitely ascertainable and (6) the staple itself easy to realize upon by sale at any time. 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292 ANNUAL REPORT FEDERAL RESERVE BOARD. (c) General conditions.—(1) Acceptances in excess of 10 per cent: In order to "be eligible, acceptances for any one customer in excess of 10 per cent of the capital and surplus of the accepting tank must remain actually secured throughout the life of the acceptance. Tn the case of acceptances of member banks this security must consist of shipping documents, warehouse receipts or other such documents, or some other actual security growing out of the same transaction as the acceptance, such as documentary drafts, trade acceptances, terminal receipts, or trust receipts which cover goods of such a character as to insure at all times a continuance of an effective and lawful lien in favor of the accepting bank. Other trust receipts are not security within the meaning of this paragraph if they permit the customer to have access to or control over the goods. (2) Maturity: Although a Federal Reserve Bank may legally rediscount an acceptance having a maturity at the time of discount of not more than three months, exclusive of days of grace, it may decline to rediscount any acceptance the maturity of which is in excess of the usual or customary period of credit required to finance the underlying transaction or which is in excess of that period reasonably necessary to finance such transaction. Since the purpose of permitting the acceptance of drafts secured by warehouse receipts or other such documents is to permit of the temporary holding of readily marketable staples in storage pending a reasonably prompt sale, shipment, or distribution, no such acceptance should have a maturity in excess of the time ordinarily necessary to effect a reasonably prompt sale, shipment, or distribution into the process of manufacture or consumption. (3) Renewals: While a national bank may properly enter into an agreement haying more than six months to run by which it obligates itself to accept drafts of the kinds described in Regulation C, each individual draft accepted under the terms of that agreement must, in order to be eligible, conform in all respects to the provisions of the law and these regulations. Inasmuch as each individual acceptance must itself conform to the terms of the law, no renewal draft, whether or not contracted for in advance, can be eligible if at the time of its acceptance the period required for the conclusion of the transaction out of which the original draft was drawn shall have elapsed. The question of the eligibility of renewal drafts, therefore, must necessarily depend upon the stage of the transaction at the time the renewal drafts are drawn. (rf) Evidence of eligibility.—A Federal Reserve Bank must be satisfied, either by reference to the acceptance itself, or otherwise, that it is eligible for rediscount. The bill itself should be drawn so as to evidence the character of the underlying transaction, but if it is not so drawn evidence of eligibility may consist of a stamp or certificate affixed by the acceptor in form satisfactory to the Federal Reserve Bank. REGULATION B, SERIES OF 1920. (Superseding Regulation B of 1917.) OPEN-MARKET PURCHASES OF BILLS OF EXCHANGE, TRADE ACCEPTANCES, AND BANKERS' ACCEPTANCES UNDER SECTION 14. I. General statutory provisions. Section 14 of the Federal Reserve Act provides that Federal Reserve Banks under rules and regulations to be prescribed by the Federal Reserve Board may purchase and sell in the open market, at home or abroad, from or to domestic or foreign banks, firms, corporations, or individuals, bankers' acceptances and bills of exchange of the kinds and maturities made eligible by the act for rediscount, with or without the indorsement of a member bank. IT. General character of bills and acceptances eligible. The Federal Reserve Board, exercising its statutory right to regulate the purchase of bills of exchange and acceptances, has determined that a bill of exchange or acceptance to be eligible for purchase by Federal Reserve Banks under this provision of section 14— (a) Must conform to the relative requirements of Regulation A, except that a banker's acceptance growing out of a transaction involving the storage within the United States of goods which have been actually sold, may be purchased, provided that the acceptor is secured by the pledge of such goods and, provided further, that the bill conforms in other respects to the relative requirements of Regulation A. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REGULATIONS OF THE BOARD. 293 (b) Must have a maturity at the time of purchase of not more than 90 days, exclusive of days of grace, unless it is a bill drawn on a banker, when it may have a maturity of three months, exclusive of days of grace. (c) Must have been accepted by the drawee prior to purchase by a Federal Reserve Bank unless it is either accompanied and secured by shipping documents or by a warehouse, terminal, or other similar receipt conveying security title or bears a satisfactory banking indorsement. III. Statements. A bill of exchange, unless indorsed by a member bank, is not eligible for purchase until a satisfactory statement has been furnished of the financial condition of one or more of the parties thereto. A bankers' acceptance, unless accepted or indorsed by a member bank, is not eligible for purchase until the acceptor has furnished a satisfactory statement of its financial condition in form to be approved by the Federal Reserve Bank and has agreed in writing with a Federal Reserve Bank to inform it upon request concerning the transaction underlying the acceptance. REGULATION C, SERIES OF 1920. (Superseding Regulation C of 1917.) ACCEPTANCE BY MEMBER BANKS OF DRAFTS AND BILLS OF EXCHANGE. A. ACCEPTANCE OF DRAFTS OR BILLS OF EXCHANGE DRAWN AGAINST DOMESTIC OR FOREIGN SHIPMENTS OF GOODS OR SECURED BY WAREHOUSE RECEIPTS COVERING READILY MARKETABLE STAPLES. I. Statutory provisions. Under the provisions of the fifth paragraph of section 13 of the Federal Reserve Act, as amended by the acts of September 7, 1916, and June 21, 1917, any member bank may accept drafts or bills of exchange drawn upon it, 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.1 This paragraph limits the amount which any bank shall accept for any one person, company, firm, or corporation, whether in a foreign or domestic transaction, to an amount not exceeding at any time, in the aggregate, more than 10 per centum of its paid-up and unimpaired capital stock and surplus. This limit, however, does not apply in any case where the accepting bank remains secured either by attached documents or by some other actual security growing out of the same transaction as the acceptance. A trust receipt which permits the customer to have access to or control over the goods will not be considered by Federal Reserve Banks to be "actual security" within the meaning of section 13. A bill of lading draft, however, is "actual security" even after the documents have been released, provided that the draft is accepted by the drawee upon or before the surrender of the documents. The law also provides that any bank may accept such bills up to an amount not exceeding at any time, in the aggregate, more than one-half of its paid-up and unimpared capital stock and surplus; or, with the approval of the Federal Reserve Board, up to an amount not exceeding at any time, in the aggregate, more than 100 per centum of its paid-up and unimpaired capital stock and surplus. In no event, however, shall the aggregate amount of acceptances growing out of domestic transactions exceed 50 per centum of such capital stock and surplus. II. Regulations. 1. Under the provisions of the law referred to above the Federal Reserve Board has determined that any member bank, having an unimpaired surplus equal to at least 20 per centum of its paid-up capital, which desires to accept drafts or bills of exchange drawn for the purposes described above, up to an amount not exceeding at any time, in 1 A readily marketable staple within the meaning of these regulations may be denned as an article of commerce, agriculture, or industry of such uses as to make it the subject of constant dealings in ready markets with such frequent quotations of price as to make (a) the price easily and definitely ascertainable and (6) the staple itself easy to realize upon by sale at any time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

294 ANNUAL REPORT FEDERAL RESERVE BOARD. the aggregate, 100 per centum of its paid-up and unimpaired capital stock and surplus, may file an application for that purpose with the Federal Reserve Board. Such application must be forwarded through the Federal Reserve Bank of the district in which the applying bank is located. 2. The Federal Reserve Bank shall report to the Federal Reserve Board upon the standing of the applying bank, stating whether the business and banking conditions prevailing in its district warrant the granting of such applications. 3. The approval of any such application may be rescinded upon 90 days' notice to the bank affected. B. ACCEPTANCE OP DRAFTS OR BILLS OF EXCHANGE DRAWN FOR THE PURPOSE OP CREATING DOLLAR EXCHANGE. I. Statutory provisions. Section 13 of the Federal Reserve Act also provides that any member bank may accept drafts or bills of exchange drawn upon it having not more than three months' 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. No member bank shall accept such drafts or bills of exchange for any one bank to an amount exceeding in the aggregate 10 per centum of the paid-up and unimpaired capital and surplus of the accepting bank unless the draft or bill of exchange is accompanied by documents conveying or securing title or by some other adequate security. No member bank shall accept such drafts or bills in an amount exceeding at any time in the aggregate one-half of its paid-up and unimpaired capital and surplus. This 50 per cent limit is separate and distinct from and not included in the limits placed upon the acceptance of drafts and bills of exchange as described under section A of this regulation. II. Regulations. Any member bank desiring to accept drafts drawn by banks or bankers in foreign countries or dependencies or insular possessions of the United States for the purpose of furnishing dollar exchange shall first make an application to the Federal Reserve Board setting forth the usages of trade in the respective countries, dependencies, or insular possessions in which such banks or bankers are located. If the Federal Reserve Board should determine that the usages of trade in such countries, dependencies, or possessions require the granting of the acceptance facilities applied for, it will notify the applying bank of its approval and will also publish in the Federal Reserve Bulletin the name or names of those countries, dependencies, or possessions in which banks or bankers are authorized to draw on member banks whose applications have been approved for the purpose of furnishing dollar exchange. The Federal Reserve Board reserves the right to modify or on 90 days' notice to revoke its approval either as to any particular member bank or as to any foreign country or dependency or insular possession of the United States in which it has authorized banks or bankers to draw on member banks for the purpose of furnishing dollar exchange. REGULATION D, SERIES OF 1920. (Superseding Regulation D of 1917.) TIME DEPOSITS AND SAVINGS ACCOUNTS. Section 19 of the Federal Reserve Act provides, in part, as follows: Dei and ti: cates of deposit deposits. TIME DEPOSITS, OPEN ACCOUNTS. The term "time deposits, open accounts" shall be held to include all accounts, not evidenced by certificates of deposit or savings pass books, in respect to which a written contract is entered into with the depositor at the time the deposit is made that neither the whole nor any part of such deposit may be withdrawn by check or otherwise, except on a given date or on written notice, which must be given by the depositor, a certain specified number of days in advance, in no case less than 30 days. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REGULATIONS OF THE BOARD. 295 SAVINGS ACCOUNTS. The term "sayings accounts" shall be held to include those accounts of the bank in respect to which, by its printed regulations, accepted by the depositor at the time the account is opened— (a) The pass book, certificate, or other similar form of receipt must be presented to the bank whenever a deposit or withdrawal is made, and (b) The depositor may at any time be required by the bank to give notice of an intended withdrawal, not less than 30 days before a withdrawal is made. TIME CERTIFICATES OF DEPOSIT. A "time certificate of deposit1' is denned as an instrument evidencing the deposit with a bank, either with or without interest, of a certain sum. specified on the face of the certificate payable in whole or in part to the depositor or on his order— (a) On a certain date, specified on the certificate, not less than 30 days after the date of the deposit, or (b) After the lapse of a certain specified time subsequent to the date of the certificate, in no case less than 30 days, or (c) Upon written notice, which the bank may at its option require to be given a certain specified number of days, not less than 30 days, before the date of repayment, and (d) In 'all cases only upon presentation of the certificate at each withdrawal for proper indorsement or surrender. REGULATION E, SERIES OF 1920. (Superseding Regulation E of 1917.) PURCHASE OF WARRANTS. STATUTORY REQUIREMENTS. Section 14 of the Federal Reserve Act reads, in part, as follows: Every Federal Reserve Bank shall have powered) To buy and sell, at home or abroad, bonds and notes of the United States, 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. For brevity's sake, the term "warrant" when used in this regulation shall be construed to mean " bills, notes, revenue bonds, and warrants, with a maturity from date of purchase of not exceeding six months," and the term "municipality" shall be construed to mean ''State, county, district, political subdivision, or municipality in the continental United States, including irrigation, drainage, and reclamation districts." REGULATION. I. Any Federal Reserve Bank may purchase warrants issued by a municipality in anticipation of the collection of taxes or in anticipation of the receipt of assured revenues, provided— (a) They are the general obligations of the entire municipality; it being intended to exclude as ineligible for purchase all such obligations as are payable from "local benefit" and "special assessment" taxes when the municipality at large is not directly or ultimately liable; (b) They are issued in anticipation of taxes or revenues which are due and payable on or before the date of maturity of stich warrants; but the Federal Reserve Board may waive this condition in specific cases. For the purposes of this regulation, taxes shall be considered as due and payable on the last day on which they may be paid without penalty; (c) They are issued by a municipality— (1) Which has been in existence] for a period of 10 years; (2) Which for a period of 10 years previous to the purchase has not defaulted* for longer than 15 days in the payment of any part of either principal or interest of any funded debt authorized to be contracted by it; (3) Whose net funded indebtedness* does not exceed 10 per centum of the valuation of its taxable property, to be ascertained by the last preceding valuation of property for the assessment of taxes. 1 See appendix, p. 296. Digitized for FRAS4E5R52 5°— 21 20 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

296 ANNUAL REPORT FEDERAL RESERVE BOARD. II. Except with the approval of the Federal Reserve Board, no Federal Reserve Bank shall purchase and hold an amount in excess of 25 per centum of the total amount of warrants outstanding at any time and issued in conformity with provisions of section 14 (7;), above quoted, and actually sold by a municipality. III. Except with the approval of the Federal Reserve Board, the aggregate amount invested by any Federal Reserve Bank in warrants of all kinds shall not exceed at the time of purchase a sum equal to 10 per centum of the deposits kept by its member banks with such Federal Reserve Bank. IV. Except with the approval of the Federal Reserve Board, the maximum amount which may be invested at the time of purchase by any Federal Reserve Bank in warrants of any single municipality shall be limited to the following percentages of the deposits kept in such Federal Reserve Bank by its member banks: Five per centum of such deposits in warrants of a municipality of 50,000 population or over; Three per centum of such deposits in warrants of a municipality of over 30,000 population, but less than 50,000; One per centum of such deposits in warrants of a municipality of over 10.000 population, but less than 30,000. V. Warrants of a municipality of 10,000 population or less shall be purchased only with the special approval of the Board. The population of a municipality shall be determined by the last, Federal or State census. Where it can not be exactly determined the Board will make special rulings. VI. Opinion of recognized counsel on municipal issues or of the regularly appointed counsel of the municipality as to the legality of the issue shall be secured and approved in each case by counsel for the Federal Reserve Bank. VII. Any Federal Reserve Bank may purchase from any of its member banks warrants of any municipality, indorsed by such member bank, with waiver of demand, notice, and protest, up to an amount not to exceed ]0 per centum of the aggregate capital and surplus of such member bank: Provided, however, That such warrants comply with provisions I and III of these regulations, except that where a period of 10 years is mentioned in I (c) hereof a period of 5 years shall be substituted for the purposes of this clause. APPENDIX TO REGULATION E. "NET FUNDED INDEBTEDNESS." The term "net funded indebtedness" is hereby defined to mean the legal gross indebtedness of the municipality (including the amount of an> school district or other bonds wnich depend for their redemption upon taxes levied upon property within the municipality) less the aggregate of the following items: (1) The amount of outstanding bonds or other debt obligations made payable from current revenues; (2) The amount of outstanding bonds issued for the purpose of providing the inhabitants of a municipality with public utilities, such as waterworks, docks, electric plants, transportation facilities, etc.: Provided, That evidence is submitted showing that the income from such utilities is sufficient for maintenance, for payment of interest on such bonds, and for the accumulation of a sinking fund for their redemption; (3) The amount of outstanding improvement bonds, issued under laws which provide for the levying of special assessments against abutting property in amounts sufficient to insure the payment of interest on the bonds and the redemption thereof: Provided, That such bonds are direct obligations of the municipality and included in the gross indebtedness of the municipality ; (4) The total of all sinking funds accumulated for the redemption of the gross indebtedness of the municipality, except sinking funds applicable to bonds just described in (1), (2), and (3) above. "EXISTENCE" AND "NONDEFAULT." Warrants will be construed to comply with that part of I (c) of Regulation E relative to term of existence and nondefault, under the following conditions: (1) Warrants issued by or in behalf of any municipality which was, subsequent to the issuance of such warrants, consolidated with or merged into an existing political division which meets the requirements of these regulations, will be deemed to be the warrants of such political division: Provided, That such warrants were assumed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REGULATIONS OF THE BOARD. 297 by such political division under statutes and appropriate proceedings the effect of which is to make such warrants general obligations of such assuming political division and payable, either directly or ultimately, without limitation to a special fund from the proceeds of taxes levied upon all the taxable real and personal property within its territorial limits. (2) Warrants issued by or in behalf of any municipality which was, subsequent to the issuance of such warrants, wholly succeeded by a newly organized political division whose term of existence, added to that of such original political division or of any other political division so succeeded, is equal to a period of 10 years will be deemed to be warrants of such succeeding political division: Provided, That during such period none of such political divisions shall have defaulted for a period exceeding 15 days in the payment of any part of either principal or interest of any funded debt authorized to be contracted by it: And provided further, That such warrants were assumed by such new political division under statutes and appropriate proceedings the effect of which is to make such warrants general obligations of such assuming political division and payable, either directly or ultimately, without limitation to a special fund from the proceeds of taxes levied upon all the taxable real and personal property within its territorial limits. (3) Warrants issued by or in behalf of any municipality which, prior to such issuance, became the successor of one or more, or was formed by the consolidation or merger of two or more, preexisting political divisions, the term of existence of one or more of which, added to that of such succeeding or consolidated political division, is equal to a j)eriod of 10 years, will be deemed to be warrants of a political division which has been in existence for a period of 10 years: Provided, That during such period none of such original, succeeding, or consolidated political divisions shall have defaulted for a period exceeding 15 days in the payment of any part of either principal or interest of any funded debt authorized to be contracted by it. REGULATION F, SERIES OF 1920. (Superseding Regulation F of 1919.) TRUST POWERS OF NATIONAL BANKS. I. Statutory -provisions. The Federal Reserve Act as amended by the act of September 26, 1918, provides in part: SEC. 11. The Federal Reserve Board shall be authorized and empowered: (k) To grant by special permit to national banks applying therefor, when not in contravention of State or local law, the right to act as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics, or 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 the national bank is located. Whenever the laws of such State authorize or permit the exercise of any or all of the foregoing powers by State banks, trust companies, or other corporations which compete with national banks, the granting to and the exercise of such powers by national banks shall not be deemed to be in contravention of State or local law within the meaning of this act. National banks exercising any or all of the powers enumerated in this subsection shall segregate all assets held in any fiduciary capacity from the general assets of the bank and shall keep a separate set of books and records showing in proper detail all transactions engaged in under authority of this subsection. Such books and records shall be open to inspection by the State authorities to the same extent as the books and records of corporations organized under State law which exercise fiduciary powers, but nothing in this act shall be construed as authorizing the State authorities to examine the books, records, and assets of the national bank which are not held in trust under authority of this subsection. No national bank shall receive in its trust department deposits of current funds subject to check or the deposit of checks, drafts, bills of exchange, or other items for collection or exchange purposes. Funds deposited or held in trust by the bank awaiting investment shall be carried in a separate account and shall not be used by the bank in the conduct of its business unless it shall first set aside in the trust department United States bonds or other securities approved by the Federal Reserve Board. In the event of the failure of such bank the owners of the funds held in trust for investment shall have a lien on the bonds or other securities so set apart in addition to their claim against the estate of the bank. Whenever thelawTs of a State require corporations acting in a fiduciary capacity to deposit securities with the State authorities for the protection of private or court trusts, national banks so acting shall be required to make similar deposits and securities so deposited shall be held for the protection of private or court trusts, as provided by the State law. National banks in such cases shall not be required to execute the bond usually required of individuals if State corporations under similar circumstances are exempt from this requirement. National banks shall have power to execute such bond when so required by the laws of the State. In any case in which the laws of a State require that a corporation acting as trustee, executor, administrator, or in any capacity specified in this section, shall take an oath or make an affidavit, the president, vice president, cashier, or trust officer of such national bank may take the necessary oath or execute the necessary affidavit. It shall be unlawful for any national banking association to lend any officer, director, or employee any funds held in trust under the powers conferred by this section. Any officer, director, or employee making Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

298 ANNUAL REPORT FEDERAL RESERVE BOARD. such loan, or to whom such loan is made, may be fined not more than $5,000 or imprisoned not more than five years, or may be both fined and imprisoned, in the discretion of the court. In passing upon applications for permission to exercise the powers enumerated in this subsection, the Federal Reserve Board may take into consideration the amount of capital and surplus of the applying TDank whether or not such capital and surplus is sufficient under the circumstances of the case, the needs of the community to be served, any and other facts and circumstances that seem to it proper, and may grant or refuse the application accordingly: Provided, That no permit shall be issued to any national banking association having a capital and surplus less than the capital and surplus required by State law of State banks, trust companies, and corporations exercising such powers. II. Applications. A national bank desiring to exercise any or all of the powers authorized by section 11 (k) of the Federal Reserve Act, as amended by the Act of September 26, 1918, shall make application to the Federal Reserve Board, on a form approved by said Board, for a special permit authorizing it to exercise such powers. In the case of an original application—that is, where the applying bank has never been granted the right to exercise any of the powers authorized by section 11 (k)—the application should be made on F. R. B. Form 61. In the case of a supplemental application—that is, where the applying bank has already been granted the right to exercise one or more of the powers authorized by section 11 (k)—the application should be made on F. R. B. Form 61-b. Both forms are made a part of this regulation and may be obtained from the Federal Reserve Board or any Federal Reserve Bank. III. Separate departments. Every national bank permitted to act under this section shall establish a separate trust department, and shall place such department under the management of an officer or officers, whose duties shall be prescribed by the board of directors of the bank. IV. Custody of trust securities and investments. The securities and investments held in each trust shall be kept separate and distinct from the securities owned by the bank and separate and distinct one from another. Trust securities and investments shall be placed in the joint custody of two or more officers or other employees designated by the board of directors of the bank and all such officers and employees shall be bonded. V. Deposit of funds awaiting investment or distribution. Funds received or held in the trust department of a national bank awaiting investment or distribution may be deposited in the commercial department of the bank to the credit of the trust department, provided that the bank first delivers to the trust department, as collateral security, United States bonds, or other readily marketable securities owned by the bank, which collateral security shall at all times be equal in market value to the amount of the funds so deposited. VI. Investment of trust funds. (a) Private trusts.—Funds held in trust must be invested in strict accordance with the terms of the will, deed, or other instrument creating the trust. Where the instrument creating the trust contains provisions authorizing the bank, its officers, or its directors to exercise their discretion in the matter of investments, funds held in trust may be invested only in those classes of securities which are approved by the directors of the bank. Where the instrument creating the trust does not specify the character or class of investments to be made and does not expressly vest in tbe bank, its officers, or its directors a discretion in the matter of investments, funds held in trust shall be invested in any securities in which corporate or individual fiduciaries in the State in which the bank is located may lawfully invest. (6) Court trusts.—Except as hereinafter provided, a national bank acting as executor, administrator, or in any other fiduciary capacity, under appointment by a court of competent jurisdiction, shall make all investments under an order of that court, and copies of all such, orders shall be filed and preserved with the records of the trust department of the bank. If the court by general order vests a discretion in the national bank to invest funds held in trust, or if under the laws of the State in which the bank is located corporate fiduciaries appointed by the court are permitted to exercise such discretion, the national bank so appointed may invest such funds in any securities in which corporate or individual fiduciaries in the State in which the bank is located may lawfully invest. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REGULATIONS OF THE BOARD. 299 VII. Boohs and accounts. All books and records of the trust department shall be kept separate and distinct from other books and records of the bank. All accounts opened shall be so kept as to enable the national bank at any time to furnish information or reports required by the Federal or State authorities, and such books and records shall be open to the inspection of such authorities. VIII. Examinations. Examiners appointed by the Comptroller of the Currency or designated by the Federal Reserve Board will be instructed to make thorough and complete audits of the cash, securities, accounts, and investments of the trust department of the bank at the same time that examination is made of the banking department. IX. Conformity with State laws. Nothing in these regulations shall be construed to give a national bank exercising the powers permitted under the provisions of section 11 (k) of the Federal Reserve Act, as amended, any rights or privileges in contravention of the laws of the State in which the bank is located within the meaning of that Act. X. Revocation of permits. The Federal Reserve Board reserves the right to revoke permits granted under the provisions of section 11 (k), as amended, in any case where in the opinion of the Board a bank has willfully violated the provisions of the Federal Reserve Act or of these regulations or the laws of any State relating to the operations of such bank when acting in any of the capacities permitted under the provisions of section 11 (k), as amended. XI. Changes in regulations. These regulations are subject to change by the Federal Reserve Board; provided, however, that no such change shall prejudice any obligation undertaken in good faith under regulations in effect at the time the obligation was assumed. REGULATION G, SERIES OF 1920. (Superseding Regulation G of 1917.) LOANS ON FARM LAND AND OTHER REAL ESTATE. Section 24 of the Federal Reserve Act provides in part that— Any national banking association not situated in a central reserve city may make loans secured by im- 1 proved and unencumbered farm land situated within its Federal reserve district or within a radius of one hundred miles of the place in which such bank is located, irrespective of district lines, and may also make loans secured by improved and unencumbered real estate located within one hundred miles of the place in which such bank islocated, irrespective of district lines; but no loan made upon the security of such farm land shall be made for a longer time than five years, and no loan made upon the security of such real estate as distinguished from farm land shall be made for a longer time than one year nor shall the amount of any such loan, whether upon such farm land or upon such real estate, exceed fifty per centum of the actual value of the property offered as security. Any such bank may make such loans, whether secured by such farm land or such real estate, in an aggregate sum equal to twenty-five per centum of its capital and surplus or to one-third of its time deposits and such banks may continue hereafter as heretofore to receive time deposits and to pay interest on the same. National banks not located in central reserve cities may, therefore, legally make loans secured by improved and unencumbered farm land or other real estate" as provided by this section. Certain conditions and restrictions must, however, be observed—• (a) There must be no prior lien on the land; that is, the lending bank must hold an absolute first mortgage or deed of trust. (b) The amount of the loan must not exceed 50 per cent of the actual value of the land by which it is secured. (c) The maximum amount of loans which a national bank may make on real estate, whether on farm land or on other real estate as distinguished from farm land, is limited under the terms of the Act to an amount not in excess of one-third of its time deposits at the time of the making of the loan, and not in excess of one-third of its average time deposits during the preceding calendar year: Provided, however, That if one-third of such time deposits as of the date of making the loan or one-third of the average time Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

300 ANNUAL REPORT FEDERAL RESERVE BOARD. deposits for the preceding calendar year, is less than one-fourth of the capital and surplus of the bank as of the date of making the loan, the bank in such event shall have authority to make loans upon real estate under the terms of the Act to the extent of one-fourth of the bank's capital and surplus as of that date. (d) Farm land to be eligible as security for a loan by a national bank must be situated within the Federal reserve district in which such bank is located or within a radius of 100 miles of such bank irrespective of district lines. (e) Real estate as distinguished from farm land to be eligible as security for a loan by a national bank must be located within a radius of 100 miles of such bank irrespective of district lines. (f) The right of a national bank to "make loans" under section 24 includes the right to purchase or discount loans already made as well as the right to make such loans in the first instance: Provided, however, That no loan secured by farm land shall have a maturity of more than five years from the date on which it was purchased or made by the national bank and that no loan secured by other real estate shall have a maturity of more than one year from such date. (g) Though no national bank is authorized under the provisions of section 24 to make a loan on the security of real estate, other than farm land, for a period exceedingone year, nevertheless, at the end of the year, it may properly make a new loan upon the same security for a period not exceeding one year. The maturing note must be canceled and a new note taken in its place, but in order to obviate the necessity of making a new mortgage or deed of trust for each renewal, the original mortgage or deed of trust may be so drawn in tne first instance as to cover possible future renewals of the original note. Under no circumstances, however, must the bank obligate itself in advance to make such a renewal. It must, in all cases, preserve the right to require payment at the end of the year and to foreclose the mortgage should that action become necessary. The same principles apply to loans of longer maturities secured by farm lands. (h) In order that real estate loans held by bank may be readily classified, a statement signed by the officers making a loan and having knowledge of the facts upon which it is based must be attached to each note secured by a first mortgage on the land by which the loan is secured, certifying in detail as of the date of the loan that all of the requirements of law have been duly observed. REGULATION H, SERIES OF 1920. (Superseding Regulation H of 1917.) MEMBERSHIP OF STATE BANKS AND TRUST COMPANIES. t I. Statutory requirements. Section 9 of the Federal Reserve Act, as amended by the act approved June 21, 1917, which authorizes State banks and trust companies to become members of the Federal Reserve System, is quoted in the appendix to this regulation on page 302. II. Banks eligible for membership. A State bank or a trust company to be eligible for membership in a Federal Reserve Bank must comply with the following conditions: 1. It must have been incorporated under a special or general law of the State or district in which it is located. 2. It must have a minimum paid-up unimpaired capital stock as follows: In cities or towns not exceeding 3,000 inhabitants, $25,000. In cities or towns exceeding 3,000 but not exceeding 6,000 inhabitants, $50,000. In cities or towns exceeding 6,000 but not exceeding 50,000 inhabitants, $100,000. In cities exceeding 50,000 inhabitants, $200,000. III. Application for membership. Any eligible State bank or trust company may make application on F. R. B. Form 83a, made a part of this regulation, to the Federal Reserve Board for an amount of capital stock in the Federal Reserve Bank of its district equal to 6 per cent of the paidup capital stock and surplus of such State bank or trust company. This application must be forwarded direct to the Federal Reserve Agent of the district in which the applying bank or trust company is located and must be accompanied by Exhibits I, II, and III, referred to on page 1 of the application blank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REGULATIONS OF THE BOARD. 301 IV. Approval of application. In passing upon an application the Federal Reserve Board will consider especially— 1. The financial condition of the applying bank or trust company and the general character of its management. 2. Whether the corporate powers exercised by the applying bank or trust company are consistent with the purposes of the Federal Reserve Act. 3. Whether the laws of the State or district in which the applying bank or trust company is located contain provisions likely to prevent proper compliance with the provisions of the Federal Reserve Act and the regulations of the Federal Reserve Board made in conformity therewith. If, in the judgement of the Federal Reserve Board, an applying bank or trust company conforms to all the requirements of the Federal Reserve Act and these regulations, and is otherwise qualified for membership, the Board will issue a certificate of approval subject to such conditions as it may deem necessary to insure compliance with the act and these regulations. When the conditions imposed by the Board have been accepted by the applying bank OT trust company the Board will issue a certificate of approval, whereupon the applying bank or trust company shall make a payment to the Federal Reserve Bank of its district of one-half of the amount of its subscription, i. e., 3 per cent of the amount of its paid-up capital and surplus, and upon receipt of this payment the appropriate certificate of stock will be issued by the Federal Reserve Bank. The remaining half of the subscription of the applying bank or trust company shall be subject to call when deemed necessary by the Federal Reserve Board. V. Potvers and restrictions. Every State bank or trust company while a member of the Federal Reserve System— 1. Shall retain its full charter and statutory rights as a State bank or trust company, subject to the provisions of the Federal Reserve Act and to the regulations of the Federal Reserve Board, including any conditions embodied in the certificate of approval. 2. Shall maintain such improvements and changes in its banking practice as may have been specifically required of it by the Federal Reserve Board as a condition of its admission and shall not lower the standard of banking then required of it; and 3. Shall enjoy all the privileges and observe all those requirements of the Federal Reserve Act and of the regulations of the Federal Reserve Board made in conformity therewith which are applicable to State banks and trust companies which have become member banks. VI. Examinations and reports. Every State bank or trust company, while a member of the Federal Reserve System, shall be subject to examinations made by direction of the Federal Reserve Board or of the Federal Reserve Bank by examiners selected or approved by the Federal Reserve Board. In order to avoid duplication, examinations of State banks and trust companies made by State authorities will be accepted in lieu of examinations by examiners selected or approved by the Board wherever these are satisfactory to the directors of the Federal Reserve Bank and where, in addition, satisfactory arrangements for cooperation in the matter of examination between the designated examiners of the Board and those of the States already exist or can be effected with State authorities. Examiners from the staff of the Board or of the Federal Reserve Banks will, whenever desirable, be designated by the Board to act with the examination staff of the State in order that uniformity in the standard of examination may be assured. Every State bank or trust company, while a member of the Federal Reserve System, shall be required to make in each year not less than three reports of condition on F. R. B. Form 105. Such reports shall be made to the Federal Reserve Bank of its district on call of such bank, on dates to be fixed by the Federal Reserve Board. They shall also make semiannual reports of earnings and dividends on F. R. B. Form 107. As dividends may be declared from time to time, each State bank or trust company member shall also furnish to the Federal Reserve Bank of its district a special notification of dividend declared on F. R. B. Form 107a. F. R. B. Forms 105, 107, and 107a are made a part of this regulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

302 ANNUAL REPORT FEDERAL RESERVE BOARD. APPENDIX TO REGULATION H. Section 9 of the Federal Reserve Act as amended by the act approved June 21, 1917, provides that: Any bank incorporated by special law of any State, or organized under the general laws of any State, or of the United States, desiring to become a member of the Federal Reserve System, may make application to the Federal Reserve Board, under such rules and regulations as it may prescribe, for the right to subscribe to the stock of the Federal reserve bank organized within the district in which the applying bank is located. Such application shall be for the same amount of stock that the applying bank would be required to subscribe to as a national bank. The Federal Reserve Board, subject to such conditions asit may prescribe, may permit the applying bank to become a stockholder of such Federal reserve bank. In acting upon such applications the Federal Reserve Board shall consider the financial condition of the applying bank, the general character of its management, and whether or not the corporate powers exercised are consistent with the purposes of this act. Whenever the Federal Reserve Board shall permit the applying bank to become a stockholder in the Federal reserve bank of the district its stock subscription shall be payable on call of the Federal Reserve Board, and stockissued to it shall be held subject to the provisions of this act. All banks admitted to membership under authority of thissection shall be required to comply with the reserve and capital requirements of this act and to conform to those provisions of law imposed on national banks which prohibit such banks from lending on or purchasing their own stock, which relate to the withdrawal or impairment of their capital stock, and which relate to the payment of unearned dividends. Such banks and the officers, agents, and employees thereof shall also be subject to the provisions of and to the penalties prescribed by section fifty-two'hundred and nine of the Revised Statutes, and shall be required to make reports of condition and of the payment of dividends to the Federal reserve bank of which they become a member. Not less than three of such reports shall be made annually on call of the Federal reserve bank on dates to be fixed by the Federal Reserve Board. Failure to inake such reports within ten days after the date they are called for shall subject the offending bank to a penalty of $100 a day for each day that it fails to transmit such report; such penalty to be collected by the Federal reserve bank by suit or otherwise. As a condition of membership such banks shall likewise be subject to examinations made by direction of the Federal Reserve Board or of the Federal reserve bank by examiners selected or approved by the Federal Reserve Board. Whenever the directors of the Federal reserve bank shall approve the examinations made by the State authorities, such examinations and the reports thereof may be accepted in lieu of examinations made by examiners selected or approved by the Federal Reserve Board: Provided, however, That when it deems it necessary the board may order special examinations by examiners of its own selection and shall in all cases approve the form of report. The expenses of all examinations, other than those made by State authorities, shall be assessed against and paid by the banks examined. If at any time it shall appear to the Federal Reserve Board that a member bank has failed to comply with the provisions of this section or the regulations of the Federal Reserve Board made pursuant thereto, it shall be within the power of the board after hearing to require such bank to surrender its stock in the Federal reserve bank and to forfeit all rights and privileges of membership. The Federal Reserve Board may restore membership upon due proof of compliance with the conditions #imposed by this section. Any State bank or trust company desiring to withdraw from membership in a Federal reserve bank may do so, after six months' written notice shall have been filed with the Federal Reserve Board, upon the surrender and cancellation of all of its holdings of capital stock in the Federal reserve bank: Provided, however, That no Federal reserve bank shall, except under express authority of the Federal Reserve Board, cancel within the same calendar year more than twenty-five per centum of its capital stock for the purpose of effecting voluntary withdrawals during that year. All such applications shall be dealt with in the order in which they are filed with the board. Whenever a member bank shall surrender its stock holdings in a Federal reserve bank, or shall be ordered to do so by the Federal Reserve Board, under authority of law, all of its rights and privileges as a member bank shall thereupon cease and determine, and after due provision has been made for any indebtedness due or to become due to the Federal reserve bank it shall be entitled to a refund of its cash paid subscription with interest at the rate of one-half of one per centum per month from date of last dividend, if earned, the amount refunded in no event to exceed the book value of the stock at that time, and shall likewise be entitled to repayment of deposits and of any other balance due from the Federal reserve bank. No applying bank shall *be admitted to membership in a Federal reserve bank unless it possesses a paid-up unimpaired capital sufficient to entitle it to become a national banking association in the place where it is situated under the provisions of the national bank act. Banks becoming members of the Federal Reserve System under authority of this section shall be subject to the provisions of this section and to those of this act which relate specifically to member banks, but shall not be subject to examination under the provisions of the first two paragraphs of section fifty-two hundred and forty of the Revised Statutes as amended by section twenty-one of this act. Subject to the provisions of this act and to the regulations of the board made pursuant thereto, any bank becoming a member of the Federal Reserve System shall retain its full charter and statutory rights as a State bank or trust company, and may continue to exercise all corporate powers granted it by the State in winch it was created, and shall be entitled to all privileges of member banks: Provided, however, That no Federal reserve bank shall be permitted to discount for any State bank or trust company notes, drafts, or bills of exchange of any one borrower who is liable for borrowed money to such State bank or trust company in an amount greater than ten per centum of the capital and surplus of such State bank or trust company, but the discount of bills of exchange drawn against actually existing value and the discount of commercial or business paper actually owned by the person negotiating the same shall not be considered as borrowed money within the meaning of this section. The Federal reserve bank, as a condition of the discount of notes, drafts, and bills of exchange for such State bank or trust company, shall require a certificate or guaranty to the effect that the borrower is not liable to such bank in excess of the amount provided by this section, and will not be permitted to become liable in excess of this amount while such notes, drafts, or bills of exchange are under discount with the Federal reserve bank. It shall be unlawful for any officer, clerk, or agent of any bank admitted to membership under authority of this section to certify any check drawn upon such bank unless the person or company drawing the check has on deposit therewith at the time such check is certified an amount of money equal to the amount specified in such check. Any check so certified by duly authorized officers shall be a good and valid obligation against such bank, but the act of any such officer, clerk, or agent in violation of this section may subject such bank to a forfeiture of its membership in the Federal Reserve System upon hearing by the Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REGULATIONS OF THE BOARD. 303 REGULATION I, SERIES OF 1920. (Superseding Regulation I of 1917.) INCREASE OR DECREASE OF CAPITAL STOCK OF FEDERAL RESERVE BANKS AND CANCELLATION OF OLD AND ISSUE OF NEW STOCK CERTIFICATES. I. Increase of capital stock. 1. New national banks.—Each newly organized national bank (including any nonmember State bank which shall have converted into a national bank ]) shall file with the Federal Reserve Bank of its district an application on F. R. B. Form 30, made a part of this regulation, for an amount of capital stock of the Federal Reserve Bank of its district equal to 6 per cent of the paid-up capital stock and surplus of such national bank. When such application has been approved by the Federal Reserve Agent and by the Federal Reserve Board, the applying national bank shall make a payment to the Federal Reserve Bank of its district of one-half of the amount of its subscription, i. e.. 3 per cent of the amount of its paid-up capital and surplus, and upon receipt of this payment the appropriate certificate of stock shall be issued by the Federal Reserve Bank. The remaining half of the subscription of the applying bank shall be subject to call when deemed necessary by the Federal Reserve Board. 2. State banks becoming members.—Any State bank or trust company desiring to become a member of the Federal Reserve System shall make application as provided in Regulation H, and when such application has been approved by the Federal Reserve Board and all requirements of Regulation H have been complied with the Federal Reserve Bank shall issue an appropriate certificate of stock as provided in Regulation H. 3. Increase of capital or surplus by member banks.—Whenever any member bank shall increase the aggregate amount of its paid-up capital stock and surplus, it shall file with the Federal Reserve Bank of which it is a member an application on F. R. B. Form 56, made a part of this regulation, for an additional amount of the capital stock of the Federal Reserve Bank of its district equal to 6 per cent of such increase. After such application has been approved by the Federal Reserve Agent and by the Federal Reserve Board, the applying member bank shall pay to the Federal Reserve Bank of its district one-hall of the amount of its additional subscription, and when this amount has been paid the appropriate certificate of stock shall be issued by the Federal Reserve Bank. The remaining half of such additional subscription shall be subject to call when deemed necessary by the Federal Reserve Board. 4. Consolidation of member banks.—Whenever two or more member banks consolidate and such consolidation results in the consolidated bank acquiring by operation of law 2 the Federal Reserve Bank stock owned by the other consolidating bank or banks, and which also results in the consolidated bank having an aggregate capital and surplus in excess of the aggregate capital and surplus of the consolidating member banks, such consolidated bank shall file an application for additional stock, as provided in the preceding paragraph. 1 Whenever any State member bank is converted into a national bank under section 5154 of the Revised Statutes as amended by section 8 of the Federal Reserve Act, it may continue to hold as a national bank its shares of Federal Reserve Bank stock previously held as a State bank, and need not file any application for Federal Reserve Bank stock, unless the aggregate amount of its capital and surplus is increased, in which event it should file an application for additional stock, as provided in Paragraph III. The certificate of stock issued in the old name of the member bank, however, should be surrendered and cancelled, and a new certificate should be issued in lieu thereof, in the new name of the member bank, as provided in the last paragraph of this regulation. 2 Section 5 of the Federal Reserve Act provides that " Shares of the capital stock of Federal Reserve Banks owned by member banks shall not be transferred or hypothecated." This provision prevents a transfer of Federal Reserve Bank stock by purchase, but does not prevent a transfer by operation of law. When there is a merger of member banks involving the liquidation of one of such banks and the purchasing of the assets of the 1 iquidating bank by the bank continuing in existence, it is necessary for the liquidating bank to surrender its Federal Reserve Bank stock and for the purchasing bank to apply for new stock. On the other hand, if member banks consolidate, under a statute which does not require the liquidation of any of the consolidating banks, and the consolidated bank continues the corporate identity of one of theconsolidatingbanks, and the assets and obligations of the other consolidating banks are transferred to the consolidated bank by operation of law, the consolidated bank becomes the owner of the Federal Reserve Bank stock of the other consolidating banks as soon as the consolidation takes effect and such stock technically need not be surrendered. The certificates of stock issued in the names of the consolidating banks, however, should be surrendered and cancelled, and a new certificate should be issued in lieu thereof, in the new name of the consolidated bank, as provided in the last paragraph of this regulation. A consolidation of national banks under the Act of Congress entitled "An Act to provide for the consolidation of national banking associations," approved November 7, 1918, meets all of these conditions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

304 ANNUAL REPORT FEDERAL RESERVE BOARD. 5. Certifying increases of Federal Reserve Bank stock.—Whenever the capital stock of any Federal Reserve Bank shall be increased the board of directors of such Federal Reserve Bank shall certify such increase to the Comptroller of the Currency on F. R. B. Form 58, which is made a part of this regulation. Such certifications shall be made quarterly as of the last days of December, March, June, and September of each year. A duplicate copy of each certificate shall be forwarded to the Federal Reserve Board. II. Decrease of capital stock. 1. Reduction of capital or surplus by member bank.—Whenever a member bank reduces the aggregate amount of its paid-up capital stock and surplus and, in the case of reduction of the paid-up capital of a national bank, such reduction has been approved by the Comptroller of the Currency and by the Federal Reserve Board in accordance with the provisions of section 28 of the Federal Reserve Act, it shall file with the Federal Reserve Bank of which it is a member an application for the surrender and cancellation of stock on F. R. B. Form 60, which is made a part of this regulation. When this application has been approved by the Federal Reserve Agent and the Federal Reserve Board, the Federal Reserve Bank shall accept and cancel the stock which the applying bank is entitled to surrender and shall refund to the member bank the proportionate amount due such bank on account of the stock canceled. 2. Insolvency ofmembei' bank.—Whenever a member bank shall be declared insolvent and a receiver appointed by the proper authorities, such receiver shall file with the Federal Reserve Bank of which the insolvent bank is a member an application on F. R. B. Form 87, which is made a part of this regulation, for the surrender and cancellation of the stock held by such insolvent member bank, and for the refund of all balances due to it. Upon approval of this application by the Federal Reserve Agent t and the Federal Reserve Board, the Federal Reserve Bank shall accept and cancel the stock surrendered, and shall adjust accounts between the member bank and the Federal Reserve Bank by applying to any indebtedness of the insolvent member bank to such Federal Reserve Bank all cash-paid subscriptions made by it on the stock canceled with one-half of 1 per centum per month from the period of last dividend if earned, not to exceed the book value thereof, and the balance, if any, shall be paid to the duly authorized receiver of such insolvent member bank. 3. Voluntary liquidation of member bank.—Whenever a member bank goes into voluntary liquidation and a liquidating agent is appointed, such agent shall file with the Federal Reserve Bank of which it is a member an application on F. R. B. Form 86, which is made a part of this regulation, for the surrender and cancellation of the stock held by and for the refund of all balances due to such liquidating member bank. Upon approval of this application by the Federal Reserve Agent and the Federal Reserve Board the Federal Reserve Bank shall accept and cancel the stock surrendered, and shall adjust accounts between the liquidating member bank and the Federal Reserve Bank by applying to the indebtedness of the liquidating member bank to such Federal Reserve Bank all cash-paid subscriptions made by it on the stock canceled with onehalf of 1 per centum per month from the period of last dividend, if earned, not to exceed the book value thereof, and the balance, if any, shall be paid to the duly authorized liquidating agent of such liquidating member bank. 4. Consolidation of member bank.—Whenever there is a consolidation of two or more member banks which results in the consolidated bank acquiring by operation of law (see note 2 on p. 21) the Federal Reserve Bank stock owned by the other consolidating banks, and which also results in the consolidated bank having a paid-up capital and surplus less than the aggregate paid-up capital and surplus of the consolidating member banks, the consolidated bank shall file with the Federal Reserve Bank of which it is a member an application for the surrender and cancellation of stock on F. R. B. Form 60a, which is made a part of this regulation . Upon the approval of this application by the Federal Reserve Agent and the Federal Reserve Board, the Federal Reserve Bank shall accept and cancel the stock which the applying bank is entitled to surrender, and shall refund to the applying bank the proportionate amount due such bank on account of the stock canceled. 5. Certifying reductions of Federal Reserve Bank stock.—All reductions of the capital stock of a Federal Reserve Bank shall, in accordance with the provisions of section 6 of the Federal Reserve Act, be certified to the Comptroller of the Currency by the board of directors of such Federal Reserve Bank on F. R. B. Form 59, which is made a part of this regulation. Such certifications shall be made quarterly as of the last day of December, March, June, and September of each year. A duplicate copy of each certificate shall be forwarded to the Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REGULATIONS OF THE BOARD. 305 III Cancellation of old and issue of new stock certificates. Whenever a member bank changes its name or, by consolidation with another member bank acquires by operation of law (see note 2 on p. 306) the Federal Reserve Bank stock previously held by such other member bank, it shall surrender to the Federal Reserve Bank the certificate of Federal Reserve Bank stock which was issued to it under its old name, or which was issued to such other member bank. The certificate so surrendered shall be indorsed by the member bank surrendering it or by the member bank to which it was originally issued and shall be accompanied by proper proof of the change of name or consolidation. Upon receipt of such certificate of stock so indorsed, together with such proof, the Federal Reserve Bank shall cancel the certificate so surrendered, and shall issue in lieu thereof to and in the name of the member bank surrendering it a new certificate for the number of shares represented by the certificate so surrendered, or if the member bank is entitled to surrender some of the stock which is represented by the surrendered certificate, and an application for the surrender and cancellation of such stock is at the same time made in accordance with this regulation, the new certificate shall be for the number of shares represented by the surrendered certificate less the number of shares canceled pursuant to such application. All cases where certificates of stock are surrendered and new certificates issued in lieu thereof and in a different name shall be reported to the Federal Reserve Board by the Federal Reserve Agent. REGULATION J, SERIES OF 1920. (Superseding Regulation J of 1917.) CHECK CLEARING AND COLLECTION. Section 16 of the Federal Reserve Act authorizes the Federal Reserve Board to require each Federal Reserve Bank to exercise the function of a clearing house for its member banks, and section 13 of the Federal Reserve Act, as amended by the act approved June 21, 1917, authorizes each Federal Reserve Bank to receive from any nonmember bank or trust company, solely for the purposes of exchange or of collection, deposits of current funds in lawful money, national-bank notes, Federal Reserve notes, checks, and drafts payable upon presentation, or maturing notes and bills, pro Added such nonmember bank or trust company maintains with its Federal Reserve Bank a balance sufficient to offset the items in transit held for its account by the Federal Reserve Bank. In pursuance of the authority vested in it under these provisions of law, the Federal Reserve Board, desiring to afford both to the public and to the various banks of the country a direct, expeditions, and economical system of check collection and settlement of balances, has arranged to have each Federal Reserve Bank exercise the functions of a clearing house for such of its member banks as desire to avail themselves of its privileges and for such nonmember State banks and trust companies as may maintain with the Federal Reserve Bank balances sufficient to qualify them under the provisions of section 13 to send items to Federal Reserve Banks for purposes of exchange or of collection. Such nonmember State banks and trust companies will hereinafter be referred to in this regulation as nonmember clearing banks. Each Federal Reserve Bank shall exercise the functions of a clearing house under the following general terms and conditions: (1) Each Federal Reserve Bank will receive at par from its member banks and from nonmember clearing banks in its district, checks l drawn on all member and nonmember clearing banks and on all other nonmember banks which agree to remit at par through the Federal Reserve Bank of their district. (2) Each Federal Reserve Bank will receive at par from other Federal Reserve Banks, and from all member and nonmember clearing banks, regardless of their location, for the credit of their accounts with their respective Federal Reserve Banks, checks drawn upon all member and nonmember clearing banks of its district and upon all other nonmember banks of its district whose checks are collected at par by the Federal Reserve Bank. i A cheek is generally denned as a draft or order upon a bank or banking house, purporting to be drawn upon a deposit of funds, for the payment at all events of a certain sum of money to a certain person therein, named, or to him or his order, or to bearer, and payable instantly on demand" Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

806 ANNUAL REPORT FEDERAL RESERVE BOARD. (3) Immediate credit entry upon receipt subject to final payment will be made for all such items upon the books of the Federal Reserve Bank at full face value, but the proceeds will not be counted as part of the minimum reserve nor become available to meet checks drawn until such time as may be specified in the appropriate time schedule referred to in subdivision 7. (4) Checks received by a Federal Reserve Bank on its member or nonmember clearing banks will be forwarded direct to such banks and will not be charged to their accounts until sufficient time has elapsed within which to receive advice of payment, as shown by the appropriate time schedule referred to in subdivision 7. (5) Under this plan each Federal Reserve Bank will receive at par from its member and nonmember clearing banks checks on all member and nonmember clearing banks and on all other nonmember banks whose checks can be collected at par by any Federal Reserve Bank. Member and nonmember clearing banks will be required by the Federal Reserve Board to provide funds to cover at par all checks received from or for the account of their Federal Reserve Banks: Provided, however, That a member or nonmember clearing bank may ship currency or specie from its own vaults at the exexpense of its Federal Reserve Bank to cover any deficiency which may arise because of and only in the case of inability to provide items to offset checks received from or for the account of its Federal Reserve Bank.2 (6) Section 19 of the Federal Reserve Act provides that— The required balance carried by a member bank with a Federal Reserve Bank may, under the regulations and subject to such penalties as may be prescribed by the Federal Reserve Board/be checked against and withdrawn by such member bank for the purpose of meeting existing liabilities: Provided, however, That no bank shall at any time make new loans or shall pay any dividends unless and until the total balance required by law is fully restored. Items can not be counted as part of the minimum reserve balance to be carried by a member bank with its Federal Reserve Bank until such time as may be specified in the appropriate time schedule referred to in subdivision 7. Therefore, should a member bank draw against items before such time, the draft would be charged against its reserve balance if such balance were sufficient in amount to pay it; but any resulting impairment of reserve balances would be subject to all the penalties provided by the Act. Inasmuch as it is essential that the law in respect to the maintenance by member banks of the required minimum reserve balance shall be strictly compiled with, the Federal Reserve Board, under authority vested in it by section 19 of the Act, has prescribed as the basic penalty for any deficiency in reserves a sum equivalent to an interest charge on the amount of the deficiency of 2 per cent per annum above the ninety-day discount rate of the Federal Reserve Bank of the district in which the member bank is located, and has announced that it will prescribe for any Federal Reserve district, upon the application of the Federal Reserve Bank of that district, as an additional progressive penalty for any subsequent deficiency by the same member bank during the same calendar year a sum equivalent to an interest charge on the amount of the subsequent deficiency at a rate increasing one-half of 1 per cent for each such subsequent deficiency. (7) Each Federal Reserve Bank will determine by analysis the amounts of uncollected funds appearing on its books to the credit of each member bank. Such analysis will show the true status of the reserve held by the Federal Reserve Bank for each member bank and will enable it to apply the penalty for impairment of reserve. Each Federal Reserve Bank will publish time schedules showing the time at which any item sent to it will be counted as reserve and become available to meet any checks drawn. (8) In handling items for member and nonmember clearing banks, a Federal Reserve Bank will act as agent only. The Board will require that each member and nonmember clearing bank authorize its Federal Reserve Bank to send checks for collection to banks on which checks sue drawn, and, except for negligence, such Federal Reserve Bank will assume no liability. Any further requirements that the Board may deem necessary will be set forth by the Federal Reserve Banks in their letters of instruction to their member and nonmember clearing banks. Each Federal Reserve Bank will also promulgate rules and regulations governing the details of its operations as a clearing house, such rules and regulations to be binding upon all member and nonmember banks which are clearing through the Federal Reserve Bank. 2 In accordance with instructions issued by the Federal Reserve Board on April 24, 1917, the various Federal Reserve Banks have issued circulars setting forth the conditions under which their respective member banks may draw drafts on their Reserve Bank accounts payable with or through any other Federal Reserve Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REGULATIONS OF THE BOARD. 307 REGULATION K, SERIES OF 1920. (Superseding Regulation K of 1920, issued in March, 1920.) BANKING CORPORATIONS AUTHORIZED TO DO FOREIGN BANKING BUSINESS UNDER THE TERMS OF SECTION 25 (A) OF THE FEDERAL RESERVE ACT. I. Organization. Any number of natural persons, not less in any case than five, may form a Corporation 1 under the provisions of section 25 (a) 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. II. Articles of association. Any person desiring to organize a corporation for any of the purposes defined in section 25 (a) shall enter into articles of association (see F. R. B. Form 151 which is suggested as a satisfactory form of articles of association) which shall specify in general terms the objects for which the Corporation is formed, and may contain any other provisions not inconsistent with law which the Corporation may see fit to adopt for the regulation of its business and the conduct of its affairs. The articles of association shall be signed by each person intending to participate in the organization of the Corporation and when signed shall be forwarded to the Federal Reserve Board in whose office they shall be filed. III. Organization certificate. All of the persons signing the articles of association shall under their hands make an organization certificate on F. R. B. Form 152, which is made a part of this regulation, and which shall state specifically: First. The name assumed by the Corporation. 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 it shall be divided. Fifth. The names and places of business or residences of persons executing the organization 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 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. Thereafter the certificate shall be forwarded to the Federal Keserve Board to be filed in its office. IV. Title. Inasmuch as the name of the Corporation is subject to the approval of the Federal Reserve Board, a preliminary application for that approval should be filed with the Federal Reserve Board on F. R. B. Form 150, which is made a part of this regulation. This application should state merely that the organization of a Corporation under the proposed name is contemplated and may request the approval of that name and its reservation for a period of 30 days. No Corporation which issues its own bonds, debentures, or other such obligations will be permitted to have the word "bank" as a part of its title. No Corporation which has the word "Federal" in its title will be permitted also to have the word "bank" as a part of its title. So far as possible the title of the Corporation should indicate the nature or reason of the business contemplated and should in no case resemble the name of any other corporation to the extent that it might result in misleading or deceiving the public as to its identity, purpose, connections, or affiliations. 1 Whenever these regulations refer to a Corporation spelled with a capital C, they relate to a corporation orggaa:nized under section 25 (a) of the "Federal Reserve Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

308 ANNUAL REPORT FEDERAL RESERVE BOARD. V. Authority to commence business. After the articles of association and organization certificate have been made and filed with the Federal Reserve Board, and after they have been approved by the Federal Reserve Board and a preliminary permit to begin business has been issued by the Federal Reserve Board, the association shall become and be a body corporate, but none of its powers except such as are incidental and preliminary to its organization shall be exercised until it has been formally authorized by the Federal Reserve Board by a final permit generally to commence business. Before the Federal Reserve Board will issue its final permit to commence business, the president or cashier, together with at least three of the directors, must certify (a) that each director elected is a citizen of the United States; (6) that a majority §of the shares of stock is 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 by firms or companies the controlling interest in which is owned by citizens of the United States; and (c) that of the authorized capital stock specified in the articles of association at least 25 per cent has been paid in in cash and that each shareholder has individually paid in in cash at least 25 per cent of his stock subscription. Thereafter the cashier shall certify to the payment of the remaining installments as and when each is paid in, in accordance with law. VI. Capital stock. No Corporation may be organized under the terms of section 25 (a) with a capital stock of less than $2,000,000. The par value of each share of stock shall be specified in the articles of association, and no Corporation will be permitted to issue stock of no par value. If there is more than one class of stock, the name and amount of each class and the obligations, rights, and privileges attaching thereto shall be set forth fully in the articles of association. Each class of stock shall be so named as to indicate to the investor as nearly as possible what is its character and to put him on notice of any unusual attributes. VII. Transfers of stock. Section 25 (a) provides in part that— A majority of the shares of the capital stock of any such corporation shall at all times be held and owned by the 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. In order to insure compliance at all times with the requirements of this provisicn after the organization of the Corporation, shares of stock shall be issuable and trans ferable only on the books of the Corporation. Every application for the issue or transfer of stock shall be accompanied by an affidavit of the party to whom it is desired to issue or transfer stock, or by his or its duly authorized agent, stating— In the case of an individual.—(a) Whether he is or is not a citizen of the United States and if a citizen of the United States, whether he is a natural born citizen or a citizen by naturalization, and if naturalized, whether he remains for any purpose in the allegiance of any foreign sovereign or state; (b) Whether there is or is not any arrangement under which he is to hold the shares or any of the shares which he desires to have issued or transferred to him, in trust for or in any way under the control of any foreign state or any foreigner, foreign corporation, or any corporation under foreign control, and if so, the nature thereof. In the case of a corporation.—(a) Whether such corporation is or is not chartered under the laws of the United States or of a State of the United States. If it is not, no further declaration is necessary, but if it is, it must also be stated (6) whether the controlling interest in such corporation is or is not owned by citizens of the United States, and (c) whether there is or is not any arrangement under which such corporation will hold the shares or any of the shares if issued or transferred to such corporation, in trust for or in any way under the control of any foreign state or any foreigner or foreign corporation or any corporation under foreign control, and if so, the nature thereof. In the case of a firm or company.—(a) Whether the controlling interest in such firm. or company is or is not owned by citizens of the United States and, if so, (b) whether there is or is not any arrangement under which such firm or company will hold the shares or any of the shares if issued or transferred to such firm or company in trust for or in any way under the control of any foreign state or any foreigner or foreign corporation or any corporation under foreign control and if so, the nature thereof. The board of directors of the Corporation, whether acting directly or through an agent, may, before making any issue or transfer of stock, require such further evidence as in their discretion they may think necessary in order to determine whether or not Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REGULATIONS OF THE BOARD. 309 the issue or transfer of the stock would result in a violation" of the law. No issue or transfer of stock which would cause 50 per cent or more of the total amount of stock issued or outstanding to be held contrary to the provisions of the law or these regulations shall be made upon the books of the Corporation. The decision of the board of directors in each case shall be final and conclusive and not subject to any question by any person, firm, or corporation on any ground whatsoever. If at any time by reason of the fact that the holder of any shares of the Corporation ceases to be a citizen of the United States, or, in the opinion of the board of directors, becomes subject to the control of any foreign state or foreigner or foreign corporation or corporation under foreign control, 50 per cent or more of the total amount of capital stock issued or outstanding is held contrary to the provisions of the law or these regulations, the board of directors may, when apprised of that fact, forthwith serve on the holder of the shares in question a notice in writing requiring such holder within two months to transfer such shares to a citizen of the United States, or to a firm, company, or corporation approved by the board of directors as an eligible stockholder. When such notice has been given by the board of directors the shares of stock so held shall cease to confer any vote until they have been transferred as required above and if on the expiration of two months after such notice the shares shall not have been so transferred, the shares shall be forfeited to the Corporation. The board of directors shall prescribe in the by-laws of the Corporation appropriate regulations for the registration of the shares of stock in accordance with the terms of the law and these regulations. The by-laws must also provide that the certificates of stock issued by the Corporation shall contain provisions sufficient to put the holder on notice of the terms of the law and the regulations of the Federal Reserve Board defining the limitations upon the rights of transfer. VIII. Operations in the United States. No Corporation shall carry on any part of its business in the United States except such as shall be incidental to its international or foreign business. Agencies may be established in the United States with the approval of the Federal Reserve Board for specific purposes, but not generally to carry on the business of the Corporation. IX. Investments in the stock of other corporations. It is contemplated by the law that a Corporation shall conduct its business abroad either directly or indirectly through the ownership or control of corporations, and it is accordingly provided that a Corporation may invest in the stock, or other certificates of ownership, of any other corporation organized— (a) Under the provisions of section 25 (a) of the Federal Reserve Act; (b) Under the laws of any foreign country or a colony or dependency thereof; (c) Under the laws of any State, dependency, or insular possession of the United States; provided, first, that such other corporation is not engaged in the general business of buying or selling goods, wares, merchandise, or commodities in the United States; and second, that it is not transacting any business in the United States except such as is incidental to its international or foreign business. Except with the approval of the Federal Reserve Board, no Corporation shall invest an amount in excess of 15 per cent of its capital and surplus in the stock of any corporation engaged in the business of banking, or an amount in excess of 10 per cent of its capital and surplus in the stock of any other kind of corporation. No Corporation shall purchase any stock in any other corporation organized under the terms of section 25 (a) 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. This restriction, however, does not apply to corporations organized under foreign laws. X. Branches. No Corporation shall establish any branches except with the approval of the Federal Reserve Board, and in no case shall any branch be established in the United States. XI. Issue of debentures, bonds, and promissory notes. Approval of the Federal Reserve Board.—No Corporation shall make any public or private issue of its debentures, bonds, notes, or other such obligations without the approval of the Federal Reserve Board, but this restriction shall not apply to notes issued by the Corporation in borrowing from banks or bankers for temporary purposes not to exceed one year. The approval of the Federal Reserve Board will be based Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 ANNUAL REPORT FEDERAL RESERVE BOARD. solely upon the right of the Corporation to make the issue under the terms of this regulation and shall not be understood in any way to imply that the Federal Reserve Board has approved or passed upon the merits of such obligations as an investment. The Federal Reserve Board will consider the general character and scope of the business of the Corporation in determining the amount of debentures, bonds, notes, or other such obligations of the Corporation which may be issued by it. Application.—Every application for the approval of any such issue by a Corporation shall be accompanuied by (1) a statement of the condition of the Corporation in such form and as of such date as the Federal Reserve Board may require; (2) a detailed list of the securities by which it is proposed to secure such issue, stating their maturities, indorsements, guaranties, or collateral, if any, and in general terms the nature of the transaction or transactions upon which they were based; and (3) such other data as the Federal Reserve Board may from time to time require. Advertisements.—No circular, letter, or other document advertising the issue of the obligations of a Corporation shall state or contain any reference to the fact that the Federal Reserve Board has granted its approval of the issue to which the advertisement relates. This requirement will be enforced strictly in order that there may be no possibility of the public's misconstruing such a reference to be an approval by the Federal Reserve Board of the merits or desirability of the obligations as an investment. XII. Sale of foreign securities. Approval of the Federal Reserve Board.—No Corporation shall offer for sale any foreign securities with its indorsement or guaranty, except with the approval of the Federal Reserve Board, but such approval will be based solely upon the right of the Corporation to make such a sale under the terms of this regulation and shall not be understood in any way to imply that the Federal Reserve Board has approved or passed upon the merits of such securities as an investment. Application.—Every application for the approval of such sale shall be accompanied by a statement of the character and amount of the securities proposed to be sold, their indorsements, guaranties, or collateral, if any, and such other data as the Federal Reserve Board may from time to time require. Advertisements.—No circular, letter, or other document advertising the sale of foreign securities by a Corporation with its indorsement or guaranty shall state or contain any reference to the fact that the Federal Reserve Board has granted its approval of the sale of the securities to which the advertisement relates. XIII. Acceptances. Kinds.—Any Corporation may accept (1) drafts and bills of exchange drawn upon it which grow out of transactions involving the importation or exportation of goods, and (2) drafts and bills of exchange which are drawn by banks or bankers located 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 such countries, dependencies, and possessions, provided, however, that, except with the approval of the Federal Reserve Board and subject to such limitations as it may prescribe, no Corporation shall exercise its power to accept drafts or bills of exchange if at the time such drafts or bills are presented for acceptance it has outstanding any debentures, bonds, notes, or other such obligations issued by it. Maturity.—Except with the approval of the Federal Reserve Board, no Corporation shall accept any draft or bill of exchange which grows out of a transaction involving the importation or exportation of goods with a maturity in excess of six months, or shall accept any draft or bill of exchange drawn for the purpose of furnishing dollar exchange with a maturity in excess of three months. Limitations.—(1) Individual drawers: No acceptances shall be made for the account of any one drawer in an amount aggregating at any time in excess of 10 per cent of the subscribed capital and surplus of the Corporation, unless the transaction be fully secured or represents an exportation or importation of commodities and is guaranteed by a bank or banker of undoubted solvency. (2) Aggregates: Whenever the aggregate of acceptances outstanding at any time (a) exceeds the amount of the subscribed capital and surplus, 50 per cent of all the acceptances in excess of the amount shall be fully secured; or (b) exceeds twice the amount of the subscribed capital and surplus, all the acceptances outstanding in excess of such amount shall be full secured. (The Corporation shall elect whichever requirement (a) or (b) calls for the smaller amount of secured acceptances.) In no event shall any Corporation have outstanding at any one time acceptances drawn for the purpose of furnishing dollar exchange in an amount aggregating more than 50 per cent of its subscribed capital and surplus. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REGULATIONS OF THE BOARD. 311 Reserves.—Against all acceptances outstanding which mature in 30 days or less a reserve of at least 15 per cent shall be maintained, and against all acceptances outstanding which mature in more than 30 days a reserve of at laest 3 per cent shall be maintained. Reserves against acceptances must be in liquid assets of any or all of the following kinds: (1) cash; (2) balances with other banks; (3) bankers' acceptances; and (4) such securities as the Federal Reserve Board may from time to time permit. XIV. Deposits. In the United States.—No Corporation shall receive in the United States any deposits except such as are incidental to or for the purpose of carrying out transactions in foreign countries or dependencies of the United States where the Corporation has established agencies, branches, correspondents, or where it operates through the ownership or control of subsidiary corporations. Deposits of this character may be made by individuals, firms, banks, or other corporations, whether foreign or domestic, and may be time deposits or on demand. Outside the United States.—Outside the United States a Corporation may receive deposits of any kind from individuals, firms, banks, or other corporations, provided, however, that if such corporation has any of its bonds, debentures, or other such obligations outstanding it may receive abroad only such deposits as are incidental to the conduct of its exchange, discount, or loan operations. Reserves.—Against all deposits received in the United States a reserve of not less than 13 per cent must be maintained. This reserve may consist of cash in vault, a balance with the Federal Reserve Bank of the district in which the head office of the Corporation is located, or a balance with any member bank. Against all deposits received abroad the Corporation shall maintain such reserves as may be required by local laws and by the dictates of sound business judgment and banking principles. XV. General limitations and restrictions. Liabilities of one borrower.—The total liabilities to a Corporation of any person, company, firm, or corporation 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 cent of the amount of its subscribed capital and surplus, except with the approval of the Federal Reserve Board: Provided, however, That the discount of bills of exchange drawn in good faith against actually existing values and the discount of commercial or business paper actually owned by the person negotiating the same shall not be considered as money borrowed within the meaning of this paragraph. The liability of a customer on account of an acceptance made by the Corporation for his account is not a liability for money%orrowed within the meaning of this paragraph unless and until he fails to place the Corporation in funds to cover the payment of the acceptance at maturity or unless the Corporation itself holds the acceptance. Aggregate liabilities of the Corporation.—The aggregate of the Corporation's liabilities outstanding on account of acceptances, average domestic and foreign deposits, debentures, bonds, notes, guaranties, indorsements, and other such obligations shall not exceed at any one time ten times the amount of the Corporation's subscribed capital and surplus except with the approval of the Federal Reserve Board. In determining the amount of the liabilities within the meaning of this paragraph, indorsements of bills of exchange having not more than six months to run, drawn and accepted by others than the Corporation, shall not be included. Operations abroad.—Except as otherwise provided in the law and these regulations, a Corporation may exercise abroad not only the powers specifically set forth in the law but also such incidental powers 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 in which it shall transact business. In the exercise of any of these powers abroad a Corporation must be guided by the laws of the country in which it is operating and by sound business judgment and banking principles. XVI. Management. The directors, officers, or employees of a Corporation shall exercise their rights and perform their duties as directors, officers, or employees, with due regard to both the letter and the spirit of the law and these regulations. For the purpose of these regulations the Corporation shall, of course, be responsible for all acts of omission or commission of any of its directors, officers, employees, or representatives in the conduct of their official duties. The character of the management of a Corporation and its general attitude toward the purpose and spirit of the law and these regulations will be considered by the Federal Reserve Board in acting upon any application made under the terms of these regulations. Digitized for FRAS4E5R5 25°—21 21 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 ANNUAL REPORT FEDERAL RESERVE BOARD. XVII. Reports and examinations. Reports.—Each. Corporation shall make at least two reports annually to the Federal Reserve Board at such times and in such form as it may require. Examinations.—Each Corporation shall be examined at least once a year by examiners appointed by the Federal Reserve Board. The cost of examinations shall be paid by the Corporation examined. XVIII. Amendments to regulations. These regulations are subject to amendment by the Federal Reserve Board from time to time, provided, however, that no such amendment shall prejudice obligations undertaken in good faith under regulations in effect at the time they were assumed. - REGULATION L, SERIES OF 1920. INTERLOCKING BANK DIRECTORATES UNDER THE CLAYTON ACT. I. Definitions Within the meaning of this regulation— The term "member bank" shall apply to any national bank and any State bank or trust company which is a member of the Federal Reserve System. The term "national bank" shall be construed to apply not only to national banking associations, but also to all banks and trust companies doing business in the District of Columbia, regardless of the sources of their charter. The term "resources" shall be construed to mean an amount equal to the sum of the deposits, capital, surplus, and undivided profits. The term "State bank" shall include any bank, banking association, or trust company incorporated under State law. The term "private banker" shall apply to any unincorporated individual engaging in one or more phases of the banking business as that term is generally understood and. to any member of an unincorporated firm engaging in such business. The term "Edge Act" shall mean section 25 (a) of the Federal Reserve Act, as amended December 24, 1919. The term "Edge Corporation " shall mean any corporation organized under the provisions of the Edge Act. The term "city of over 200,000 inhabitants" includes any city, incorporated town,, or village of more than 200,000 inhabitants, as snown by the last preceding decennial census of the United States. Any bank located anywhere within the corporate limits of such city is located in a city of over 200,000 inhabitants within the meaning of the Clayton Act, even though it is located in a suburb or an outlying district at some distance from the principal part of the city. II. Prohibitions of Clayton Act. Under sections 8 of the Clayton Antitrust Act— (1) No person who is a director or other officer or employee of a national bank or Edge Corporation having resources aggregating more than $5,000,000 can legally serve at the same time as director, officer, or employee of any other national bank or Edge Corporation, regardless of its location. (2) No person who is a director in a State bank or trust company having resources aggregating more than $5,000,000 or who is a private banker having resources aggregating more than $5,000,000 can legally serve at the same time as director of any national bank or Edge Corporation, regardless of its location. (3) No person can legally be a director, officer, or employee of a national bank or Edge Corporation located in a city of more than 200,000 inhabitants who is at the same time a private banker in the same city or a director, officer or employee of any other bank (State or national) located in the same city, regardless of the size of such bank. The eligibility of a director, officer, or employee under the foregoing provisions is determined by the average amount of deposits, capital, surplus, and undivided profits as shown in the official statements of such bank, banking association, or trust company filed, as provided by law, during the fiscal year next preceding the date set for the annual election of directors, and when a director, officer, or employee has been elected or selected in accordance with the provisions of the Clayton Act, it is lawful for him to continue as such for one year thereafter under said election or employment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REGULATIONS OF THE BOARD. 313 When any person elected or chosen as a director, officer, or employee of any bank is eligible at the time of his election or selection to act for such bank in such capacity, his eligibility to act in such capacity is not affected by reason of any change in the affairs of such bank from whatsoever Gause until the expiration of one year from the date of his election or employment. III. Exceptions. The provisions of section 8 of the Clayton Act— (1) Do not apply to mutual savings banks not having a capital stock represented by shares. (2) Do not prohibit a person from being at the same time a director, officer, or employee of a national bank or Edge Corporation and not more than one other national bank, Edge Corporation, State bank, or trust company, where the entire capital stock of one is owned by the stockholders of the other. (3) Do not prohibit a person from being at the same time a class A director of a Federal Reserve Bank and also an officer or director, or both an officer and a director, in one member bank. (4) Do not prohibit a person who is serving as director of a national bank or Edge Corporation, even though it has resources aggregating over $5,000,000, from serving at the same time as director of any number of State banks and trust companies, provided such State institutions are not located in the same city of over 200,000 inhabitants as the national bank or Edge Corporation, and do not have resources aggregating in the case of any one bank more than $5,000,000. (5) Do not prohibit a person from serving at the same time as director, officer, or employee of any number of national banks, provided no two of them are located in the same city of over 200,000 inhabitants, and no one of them has resources aggregating over $5,000,000. (6) Do not prohibit a person who is not a director, officer, or employee of any national bank or Edge Corporation from serving at the same time as officer, director, or employee of any number of State banks or trust companies, regardless of their locations and resources. (7) Do not prohibit a person who is an officer or employee, but not a director, of a State bank from serving as director, officer, or employee of a national bank or Edge Corporation, even though such State bank has resources aggregating over $5,000,000, provided both banks are not located in the same city of over 200,000 inhabitants. (8) Do not prohibit a person who is an officer or employee, but not a director, of a national bank or Edge Corporation from serving at the same time as director, officer, or employee of a State bank, even though such State bank has resources aggregating over $5,000,000, provided both banks are not located in the same city of over 200,000 inhabitants. (9) Do not apply to persons who have obtained the consent or approval of the Federal Reserve Board under the provisions of the Kern amendment, section 25 of the Federal Reserve Act, or the Edge Act, as hereinafter provided. Exceptions cumulative.—The above exceptions are cumulative. IV. Permission of the Federal Reserve Board under Kern amendment. By the Kern amendment, approved May 15, 1916, as amended May 26, 1920, the Clayton Act was amended so as to authorize the Federal Reserve Board to permit any private banker or any officer, director, or employee of any member bank or class A director of a Federal Reserve Bank to serve as director, officer, or employee of not more than two other banks, banking associations, or trust companies coming within the prohibitions of the Clayton Act, provided such other banks are not in substantial competition with such private banker or member bank. Substantial competition.—If the institutions involved are not in substantial competition, the Board is authorized, in its discretion, to grant, withhold, or revoke such consent; but if they are in substantial competition, the Board has no discretion in the matter, and must refuse such consent. When obtained.—Inasmuch as the Kern amendment excepts from the prohibitions of the Clayton Act only those "who shall first procure the consent of the Federal Reserve Board," it is a violation of the law to serve two or more institutions in the prohibited classes before such consent has been obtained. Such consent should be obtained, therefore, before becoming an officer, director, or employee of more than one bank in the prohibited classes. Such consent may be procured before the person applying therefor has been elected as a class A director of a Federal Reserve Bank, or as a director of any member bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 ANNUAL REPORT FEDERAL RESERVE BOARD. Applications for permission.—A person wishing to obtain the permission of the Federal Reserve Board to serve banks coming within the prohibitions of the Clayton Act should: (1) Make formal application on F. R. B. Form 94, or, if a private banker, on F. R. B. Form 94d. Each of these forms is made a part of this regulation. (2) Obtain from each of the banks involved a statement on F. R. B. Form 94a, which is made a part of this regulation, showing the character of its business, together with a copy of its last published statement of condition, and, if a private banker, make a statement on F. R. B. Form 94a showing the character of his or his firm's business. (3) Forward all these papers to the Federal Reserve Agent of his district, who will attach his recommendation on F. R. B. Form 94b, which is made apart of.this regulation, and forward them in due course to the Federal Reserve Board. Approval or disapproval.—As soon as an application is acted upon by the Board, the applicant will be advised of the action taken. If the Board, approves the application, a formal certificate of permission to serve on the banks involved will be issued to the applicant. Rehearing.—If the Board decides that the banks are in substantial competition, and that it can not approve the application, it will, upon petition of the applicant, reconsider its decision and afford him every opportunity to present any additional facts or arguments bearing on the subject. Effect of permits.—Permission once granted is continuing until revoked and need not be renewed. Revocation.—All permits, however, are subject to revocation at any time in the discretion of the Federal Reserve Board. The issuance of a permit to any person shall have the effect of revoking any or all permits which may have been issued previously to that person. V. Permits under section 25 of the Federal Reserve Act. With the approval of the Federal Reserve Board, any director, officer, or employee of a member bank which has invested in the stock of any corporation principally engaged in international or foreign banking or financial operations or banking in a dependency or insular possession of the United States, under the provisions of section 25 of the Federal Reserve Act, may serve as director, officer, or employee of any such foreign bank or financial corporation. Applications for approval.—The approval of the Federal Reserve Board for such interlocking directorates may be obtained through an informal application in the form of a letter addressed to the Federal Reserve Board either by the officer, director, or employee involved, or in his behalf by one of the banks which he is serving. Such application should be sent directly to the Federal Reserve Board. VI. Permits to serve Edge corporations. With the approval of the Federal Reserve Board— (1) Any officer, director, or employee of any member bank may serve at the same time as director, officer, or employee of any Edge Corporation in whose capital stock the member bank shall have invested. (2) Any officer, director, or employee of any Edge Corporation may serve at the same time as officer, director, or employee of any other corporation in whose capital stock such Edge Corporation shall have invested under the provisions of the Edge Act. Applications for approval.—Such approval may be obtained through an informal application in the form of a letter addressed to the Federal Reserve Board either by the director, officer, or employee involved, or in his behalf by one of the banks or corporations involved. Such applications should be sent directly to the Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AMENDMENTS TO THE ACT. 315 AMENDMENTS TO FEDERAL RESERVE ACT AND CLAYTON ANTITRUST ACT. [PUBLIC—No. 170—66TH CONGRESS.] [H. R. 12711.] 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 section 14 of the Federal Reserve Act as amended by the Acts approved September 7, 1916, and June 21, 1917, be further amended by striking out the semicolon after the word '' business " at the end of subparagraph (d) and insert in lieu thereof the following : "and which, subject to the approval, review, and determination of the Federal Reserve Board, may be graduated or progressed on the basis of the amount of the advances and discount accommodations extended by the Federal reserve bank to the borrowing bank." Approved, April 13, 1920. [PUBLIC—No. 225—66TH CONGRESS.] [H. R. 13138.] An Act To amend section 8 of an Act entitled "An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes," approved October 15,1914, as amended May 15,1916. Be it enacted by the Senate and^ House of Representatives of the United States of America in Congress assembled, That section 8 of an Act entitled '' An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes,'' approved October 15, 1914, as amended by the Act of May 15, 1916, be further amended by inserting in the proviso at the end of the second clause of said section after the word '' prohibit " the words '' any private banker or,'' so that the proviso as amended shall read: " And provided further, That nothing in this Act shall prohibit any private banker or any officer, director, or employee of any member bank or class A director of a Federal reserve bank, who shall first procure the consent of the Federal Reserve Board, which board is hereby authorized, at its discretion, to graot, withhold, or revoke such consent, from being an officer, director, or employee of not more than two other banks, banking associations, or trust companies, whether organized under the laws of the United States or any State, if such other bank, banking association, or trust company is not in substantial competition with such banker or member bank. "The consent of the Federal Reserve Board may be procured before the person applying therefore has been elected as a class A director of a Federal reserve bank or as a director of any member bank.'' Approved, May 26, 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 ANNUAL, REPORT FEDERAL RESERVE BOARD. SUMMARY OF ALL AMENDMENTS TO THE FEDERAL RESERVE ACT. The following is a brief explanation of the various amendments to the Federal Reserve Act. It consists of two parts: Part 1, which contains a discussion of the various acts which specifically amended the text of the Federal Reserve Act; and Part 2, which contains a discussion of those acts which did not change the text of the Federal Reserve Act but which in effect amended the substance of the act. PART I.'ACTS SPECIFICALLY AMENDING THE FEDERAL RESERVE ACT. The following acts specifically amended the Federal Reserve Act: ACT OF AUGUST 4, 1914. Section 27 of the Federal Reserve Act as originally enacted amended section 9 of the Aldrich-Vreeland Act of May 30, 1908, by reenacting that part relating to the tax rates on national bank notes secured otherwise than by bonds of the United States. The act of August 4, 1914, amended section 27 of the Federal Reserve Act so as to add to the above named section of the Aldrich-Vreeland Act, a proviso authorizing the Secretary of the Treasury to suspend the limitations imposed by Sections 1, 3, and 5 of the Aldrich-Vreeland Act on the issue of such additional national bank notes and to extend the privileges of the Aldrich-Vreeland Act to all qualified State banks and trust companies which had joined the Federal Reserve System or might contract to do so within a limited time. This amendment has become inoperative by reason of the expiration by limitation on June 30, 1915, of the Aldrich-Vreeland Act. ACT OF AUGUST 15, 1914. Reserves.—This act amended section 19 of the Federal Reserve Act so as to permit State banks or trust companies which were then coming into the system to continue to keep their reserves with other State banks or trust companies during three years within which the change was to be made from the old system to the Federal Reserve System. ACT OF MARCH 3, 1915. Acceptances.—This act amended section 13 (paragraphs 3, 4, and 5) so as to authorize the Federal Reserve Board, in its discretion, to increase the amount of acceptances based on the importation or exportation of goods which a member bank of the system may discount and which a Federal Reserve Bank may rediscount. ACT OF SEPTEMBER 7, 1916. Reserves.—Section 11 was amended by the addition of a new subsection (m) which authorized the Federal Reserve Board, upon an affirmative vote of not less than five, to permit member banks to carry in the Federal Reserve Banks any portion of their reserves then required to be held in their own vaults. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AMENDMENTS TO THE ACT. 317 Deposits with Federal Reserve Banks.—Section 13 was amended so as to authorize Federal Reserve Banks to receive on deposit from member banks all checks and drafts payable on presentation, and also for collection maturing bills. Prior to the amendment the Federal Reserve Banks were authorized to receive on deposit only those checks and drafts which were drawn upon solvent member banks and other Federal Reserve Banks. The amendment also authorized any Federal Reserve Bank to receive for purposes of collection as well as exchange checks and drafts payable upon presentation within its district and maturing bills payable within its district. Rediscounts,—Section 13 was further amended so as to provide that the indorsement by a, member bank of notes, drafts, and bills of exchange discounted with its Federal Reserve Bank should be deemed to constitute a waiver of demand notice and protest by the member bank as to its own indorsement exclusively. Prior to the amendment member banks were required to execute waivers of demand, notice, and protest. Section 13 was further amended so as to specifically provide that certain notes, drafts, and bills of exchange having a maturity of 90 days, exclusive oj days of grace, might be admitted to discount. Prior to this amendment the statute was silent on the question as to whether the maturity included days of grace. Section 13 was further amended so as to provide that the discount of notes, drafts, and bills of exchange drawn for agricultural purposes or based on live stock and having a maturity not exceeding six months shall be limited to a certain percentage of the total assets of the Federal Reserve Bank. Prior to this amendment such paper was limited to a certain percentage of the capital of a Federal Reserve Bank instead of its total assets. By another amendment to section 13 the aggregate of notes, drafts, and bills bearing the signature of any one borrower (other than bills of exchange drawn against actually existing values) which may be discounted for a member bank is limited to 10 per cent of the unimpaired capital and surplus of the member bank. Prior to this amendment Federal Reserve Banks were not permitted to discount notes or bills bearing the signature or indorsement of any one person, company, firm, or corporation to an amount in excess of 10 per cent of the capital and surplus of the member bank, whether such person, firm, or corporation was the borrower or not. Acceptances.—Prior to this amendment member banks were permitted to accept only such drafts or bills of exchange as grew out of transactions involving the importation or exportation of goods. This act amended section 13 so as to greatly broaden the powers of member banks with regard to acceptances. Under section 13, as so amended, member banks are permitted to accept drafts or bills of exchange under certain conditions: (a) Which grow out of transactions involving the importation or exportation of goods. (6) 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 ANNUAL REPORT FEDERAL RESERVE BOARD. (c) Which are secured at the time of acceptance by warehouse receipts or other such documents conveying or securing title covering readily marketable staples. ' (d) 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. In enacting this amendment Congress inadvertently omitted from section 13 that provision which permitted national banks with the approval of the Federal Reserve Board to accept up to 100 per cent of their capital and surplus in transactions involving imports or exports. Advances to member banks.—This act further amends section 13 so as to authorize Federal Reserve Banks to make advances to member banks on promissory notes of such member banks for a period not exceeding 15 days, such notes being secured by notes, drafts, bills of exchange, or bankers' acceptances eligible for rediscount or for purchase by Federal Reserve Banks, or by bonds or notes of the United States. Member banks as insurance agents and real estate brokers.—Section 13 was further amended so as to permit national banks located and doing business in places with a population not exceeding 5,000 inhabitants to act as agents for fire, life, or other insurance companies, and also to act as brokers or agents for others in making or procuring loans on real estate located within 100 miles of the place in which the bank is located. Banking accounts for foreign correspondents.—Section 14, subsection (e), was amended so as to permit Federal Reserve Banks, with the consent of the Federal Reserve Board, to open and maintain banking accounts for foreign correspondents or agencies. Security for Federal Reserve notes.—Prior to this amendment Federal Reserve notes could be secured only by notes and bills of exchange accepted for rediscount under section 13. This act amended section 16 so as to permit Federal Reserve notes to be secured also by drafts, bills of exchange or acceptances rediscounted under the provisions of section 13 or bills of exchange indorsed by member banks of any Federal Reserve district and purchased under the provisions of section 14. Loans on real estate.—Section 24, relative to loans on farm lands, was amended so as to permit banks lying contiguous to the lines of a Federal Reserve district to make loans on farm lands within a radius of 100 miles, regardless of district lines, and to make loans on other improved and unincumbered real estate within the same district but for not exceeding a period of one year. Foreign banking business.—Prior to this amendment national banks were authorized to establish branches in foreign countries or dependencies or insular possessions of the United States. This act amended section 25 so as to permit them to either establish such branches or to invest an amount not exceeding 10 per cent of their paid-in capital stock and surlpus in one or more corporations incorporated under the laws of the United States or of any State, and principally engaged in international or foreign banking. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AMENDMENTS TO THE ACT. 319 ACT OF JUNE 21, 1917. Branches of Federal Reserve Banks.—Section 3 was amended so as to authorize the Federal Reserve Board to permit or require any Federal Reserve Bank to establish branch banks within its district. As so amended, it provides that the number of directors of such branches shall at the option of the Board be not more than seven nor less than three. Assistants to Federal Reserve agents.—Section 4 was amended so as to provide for the appointment of assistants to the Federal Reserve agents, who shall have power to act in the agent's name and stead during his absence or disability. The office of the deputy reserve agent, formerly held by one of the Class C directors, was abolished. Membership of State banks and trust companies.—Section 9 relating to the admission of State banks and trust companies to the Federal Reserve System was amended so as to provide that, subject to the provisions of the Federal Reserve Act and to the regulations of the Federal Reserve Board made pursuant thereto, any State bank or trust company which becomes a member of the Federal Reserve System shall retain its full charter and statutory rights and may continue to exercise all corporate powers granted to it by the State in which it was created and shall be entitled to all the privileges of member banks; provided, however, that no Federal Reserve Bank may discount for such member bank any note, draft, or bill of exchange of any one borrower who is liable to the member bank for more than 10 per cent of its capital and surplus. The amendment took away from the Comptroller of the Currency the power granted by section 21 to examine State banks and trust companies which are member banks, but provided that such banks shall be subject to examinations by direction of the Federal Reserve Board or of the Federal Reserve Bank by examiners selected or approved by the Federal Reserve Board. Examinations by State authorities, when approved by the directors of the Federal Reserve Bank, may be accepted in lieu of examinations by examiners approved by the Federal Reserve Board. Reports of condition and of payments of dividends must be made to the Federal Reserve Bank instead of to the Comptroller of the Currency as in the past. State banks and trust companies which have become members are authorized to withdraw from the Federal Reserve System after six months7 written notice. Clearing and collection for nonmember banks.—Section 13 was amended so as to authorize Federal Reserve Banks solely for purposes of collection or exchange to receive deposits of currency, checks, drafts, and maturing notes or bills from any nonmember bank or trust company which maintains with the Federal Reserve Bank a balance sufficient to offset the items in transit held for its account by the Federal Reserve Bank. Section 13 as amended also authorizes any member bank 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, for the collection or payment of checks and drafts and remission thereof by exchange or otherwise. Federal Reserve Banks, however, are not subject to these charges. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

320 ANNUAL REPORT FEDERAL RESERVE BOARD. Acceptances by member hanks.—Section 13 was further amended so as to restore that provision authorizing the Federal Reserve Board to permit member banks to accept drafts and bills of exchange drawn against shipments of goods or against warehouse receipts covering readily marketable staples up to 100 per cent of the capital and surplus of the accepting bank. This provision has been inadvertently omitted from section 13 by the amendment of September 7, 1916. Foreign agencies of Federal Reserve Banks.—Section 14, subsection (e), was amended so as to authorize the Federal Reserve Board to permit or require reserve banks to open and maintain accounts in foreign countries, etc., and also to provide for participation accounts. Issue of Federal Reserve notes against gold.—Section 16 was amended so as to authorize the issue of Federal Reserve notes upon the security of gold or gold certificates and so as to provide that gold or gold certificates held by the Federal Reserve Agent as collateral security shall be counted as part of the gold reserve which the Federal Reserve Bank is required to maintain against its notes in actual circulation. As so amended, this section also authorizes the issue of Federal Reserve notes upon the security of 15-day notes of member banks secured by eligible commercial paper or by bonds or notes of the United States. Deposits of gold with the Treasurer or Assistant Treasurer,—Section 16 was further amended so as to authorize the Treasurer or any Assistant Treasurer of the United States to receive deposits of gold or gold certificates w^hen tendered by any Federal Reserve Bank or Federal Reserve Agent for credit to its or his account with the Federal Reserve Board. Deposits of Government bonds with the Treasurer.—Section 17 was amended so as to repeal any provision of law requiring any national bank to maintain a minimum deposit of bonds with the Treasurer of the United States. Reserves.—Section 19 was amended so as to provide for an immediate transfer of all reserves of member banks to Federal Reserve Banks. Under this section the total amount of reserves to be maintained by a member bank must be deposited with.the Federal Reserve Bank of its district. The amount of these reserves is as follows: Demand Time deposits. deposits. Per cent. Per cent. Country banks 3 Reserve city banks 10 i 3 Central reserve city banks.. 13 ! 3 Member banks are no longer required to maintain any reserves in their own vaults. Balances with nonmember banks.—Section 19 formerly provided that no member bank should keep on deposit with "any nonmember bank'7 any sum in excess of 10 per cent of its own capital and surplus. That restriction necessarily applied to balances with foreign banks as well as to balances with nonmember State banks and trust companies. It was amended so as to apply only to deposits with '' any State bank or trust company which is not a member bank." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AMENDMENTS TO THE ACT. 321 Salaries or fees of directors, officers, or employees.—Section 22, relating to the salaries or fees paid to directors, officers, or employees of member banks, was amended by the addition of provisos to the effect that directors, officers, employees, or attorneys shall not be prohibited from receiving the same rates of interest paid to other depositors of the bank, and that notes, drafts, bills, or other evidences of debt executed or indorsed by directors or attorneys of the bank may be discounted with such bank on the same terms and conditions as other notes, drafts, bills, or other evidences of debt upon the affirmative vote or written assent of a majority of the members of the board of directors of such member bank. ACT OF SEPTEMBER 26, 1918. Election of Federal Reserve BanJc officers.—Section 4 of the Federal Reserve Act was amended so as to leave to the discretion of the Federal Reserve Board the grouping of the member banks in each district into three general groups or divisions, without the old requirement that each group shall contain, as nearly as possible, one-third of the aggregate number of the banks in the district. Section 4 was further amended so as to permit each member bank, by a resolution of its board of directors or by an amendment to its by-laws, to authorize its president, cashier, or some other officer to cast its vote in elections of Federal Reserve Bank directors in place of the old method of electing by ballot a district reserve elector at a regularly called meeting of the board of directors of each member bank in the district to cast its vote at a particular time. A provision was added that no officer or director of a member bank shall be eligible to serve as a Class A director unless nominated and elected by banks which are members of the same group as the member bank of which he is an officer or director, and that no person who is a director or officer of more than one member bank shall be eligible for nomination as a Class A director, except by banks in the same group as the bank having the largest aggregate resources of any of those of which such person is a director or officer. Fiduciary powers of national banks.—Section 11 (k) was amended and reenacted so as to authorize the Federal Reserve Board to permit national banks to act as guardians of estates, assignees, receivers, committees of estates of lunatics, or in any other fiduciary capacity in which State banks, trust companies, or other corporations whicn come into competition with national banks are permitted to act under the laws of the State in which the particular national bank making the application is located, in addition to the right granted under the old Act to act as trustee, executor, administrator, and registrar of stocks and bonds. Moreover, the act as amended provides that it shall not be deemed to be ''in contravention of State or local law77 to permit the exercise of such powers by national banks whenever the laws of the particular State authorize or permit the exercise of such powers by State banks, trust companies, or other corporations competing with national banks. It is prescribed that all assetsheldin any fiduciary capacity shallbesegregated from the general assets of the bank; that a separate set of books and records shall be kept; that such books shall be open to the inspection of the State Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

322 ANNUAL REPORT FEDERAL RESERVE BOARD. authorities; that national banks shall not receive in their trust departments deposits of current funds subject to check, or deposits of checks, drafts, or similar instruments, that trust funds deposited with the general assets of a bank shall be properly secured; that the owners of such funds shall have a lien on the securities set apart to protect these funds and that national banks acting as fiduciaries shall comply with the State requirements as to the deposit of securities with the State authorities; that national banks shall not be required to execute bonds if State corporations under similar circumstances are exempt from such requirements; that national banks shall have the power to execute such bonds; that oaths or affidavits required may by executed by an officer of a national bank; that it shall be unlawful for a national bank to lend trust funds to any bank officer, director, or employee. In passing upon applications the Federal Reserve Board is required to take into consideration the amount of capital and surplus of the applying bank and other material facts, and is prohibited from granting such permits to national banks having a capital and surplus less than is required of State banking institutions under State law. Issuance of $500, $1,000, $5,000, and $10,000 Federal Reserve notes.—Section 16 was amended so as to permit the issuance of Federal Reserve notes in denominations of $500, $1,000, $5,000, and $10,000, in addition to the denominations formerly permitted. Reserves of national hanks in outlying districts.—Section 19 was amended so as to permit the Federal Reserve Board, upon the affirmative vote of five members, to require national banks located in outlying districts of a reserve city or in territory added to such city ty the extension of its corporate charter, to maintain only such reserves as are required to be maintained by country banks; and to require national banks similarly located in central reserve cities, or in territory similarly added to such cities, to maintain only such reserves as are required to be maintained by country banks or by banks in reserve cities. Amendments to section ^.—Section 22 was amended so as to clarify and modify the existing provisions and was subdivided into subsections (a), (b), (c), {d), (e), and (/). Loans and gratuities to hank examiners.—Section 22 (a) as amended prohibits loans and gratuities to bank examiners and provides penalties for violation of that provision. Disclosures of confidential information.—Section 22(&) provides that no national bank examiner shall perform any other service for compensation for any bank, or officer, director, or employee thereof. It further forbids disclosures of confidential information by examiners, public or private, and provides a penalty for violation of the provisions of that subsection. Commissions for obtaining loans.—Section 22 (c) prohibits any officer, director, employee, or attorney of a member bank from receiving a commission or other thing of value for procuring loans or purchases or discounts of any commercial paper or similar obligations. Purchases from, and sales to, directors,—Section 22 id) imposes the conditions under which a member bank may contract for or purchase or sell securities or other property where the other party in interest in the transaction is a director of such bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AMENDMENTS TO THE ACT. 323 Interest on deposits of officers, directors, or employees.—Section 22 (e) prohibits the payment of a greater rate of interest to any officer, director, employee, or attorney than is paid to any other depositor. Liability for violating provisions.—Section 22(/) provides that directors and officers of member banks knowingly violating or permitting violations of section 22, shall be liable in their personal and individual capacity for all damages which the member bank, its shareholders, or any other persons, may sustain in consequence thereof. Over-certification of checks, embezzlements, etc.—Sections 5208 and 5209, Revised Statutes, which are penal sections relating to the overcertification of checks, embezzlement, abstraction or willful misapplication of moneys, funds, or credit of national banks by officers, directors, agents, or employees thereof and to false entries in books, reports, or statements of national banks with intent to injure or defraud, on the part of any officer, director, agent, or employee of a national bank, were made applicable to similar acts committed by officers, directors, agents, or employees of Federal Reserve Banks. ACT OF MARCH 3, 1919. Earnings cf Federal Reserve Banks.—Section 7 of the Federal Reserve Act was amended so as to permit Federal Reserve Banks to accumulate a surplus of 100 per cent instead of 40 per cent as heretofore provided, before paying the excess of such net earnings to the United States as a franchise tax. Eligibility of ex-board members to serve member banks.—Section 10 was amended so as to permit appointive members of the Federal Reserve Board to serve member banks after they have served the full term for which they were appointed. Rediscount of leans in excess cf 10 per cent secured by Government bonds or notes.—Section 11 (ra), which formerly authorized the Federal Reserve Board to permit member banks to carry with Federal Reserve Banks any portion of their reserves required by section 19 to be held in their own vaults, was stricken out and there was substituted therefor a new section ll(m) which authorizes the Federal Reserve Board, upon the affirmative vote of five members, to permit Federal Reserve Banks to discount for member banks paper bearing the signature or indorsement of any one borrower in excess of 10 per cent, but in no case to exceed 20 per cent of the member bank's capital and surplus, provided that all such paper is secured by a like face amount of bonds or notes of the United States, issued since April 24, 1917. It was designed to broaden the discount powers of Federal Reserve Banks to correspond to the lending powers of national banks as enlarged by the act of September 24, 1918, which amended the National Bank Act so as to permit national banks, under regulations prescribed by the Comptroller of the Currency, with the approval of the Secretary of the Treasury, to lend to one person an amount in excess of 10 per cent of their capital and surplus, provided such loans are secured by United States bonds or certificates of indebtedness issued after April 24, 1917. In effect, it amended sections 9 and 13. It lapsed after December 31, 1920. Engraving signatures on national bank notes.—Section 5172, Revised Statutes, was amended so as to authorize national bank notes to be signed by the engraved signatures of the president or vice president. This, in effect, amended section 27 of the Federal Reserve Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

324 ANNUAL REPORT FEDERAL RESERVE BOARD. ACT OF SEPTEMBER, 17, 1919. Section 25 was amended so as to authorize any national bank, until January 1, 1921, without regard to the amount of its capital and surplus, to invest not exceeding 5 per cent of its capital and surplus in the stock of one or more corporations chartered under Federal or State law and principally engaged in such phases of international or foreign financial operations as may be necessary to facilitate exports from the United States. ACT OF DECEMBER 24 1919. ? uEdge Corporations."—A new section was added to the Act—Section 25 (a)—which provides for the Federal incorporation of institutions to engage in international or foreign banking or other financial operations. ACT OF APRIL 13, 1920. Graduated discount rates.—Section 14 was amended so as to authorize Federal Reserve Banks, subject to the approval, review, and determination of the Federal Reserve Board, to establish discount rates graduated or progressed on the basis of the amount of the advances and discount accommodations extended by the Federal Reserve Bank to the borrowing bank. PART II. ACTS IN EFFECT AMENDING THE FEDERAL RESERVE ACT. The following acts either directly affect the Federal Reserve System in some way or amend the Federal Reserve Act without specifically making any textual changes in the act itself. CLAYTON ANTITRUST ACT. The Clayton Antitrust Act, approved October 15, 1914, as amended by the Kern Amendment approved May 15, 1916, charges the Federal Reserve Board with the duty of enforcing that part of section 8 of the Clayton Act which relates to interlocking bank directorates, and vests in the Federal Reserve Board power to permit a person to serve not more than three banks coming within the prohibitions of the Clayton Act, provided such banks are not in substantial competition. On May 26, 1920, the Kern Amendment was amended so as to authorize the Federal Reserve Board to grant permits to private bankers to serve not more than two of such banks. AMENDMENT TO POSTAL SAVINGS ACT. Section 2 of the amendment to the Postal Savings Act, approved May 18, 1916, requires postal savings funds to be deposited with member banks of the Federal Reserve System instead of nonmember banks, if there are any duly qualified member banks in the city or town where such postal savings deposits are made. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AMENDMENTS TO THE ACT. 325 FARM LOAN ACT. Section 5 provides that that part of the capital of any Federal land bank which is required to be held in quick assets may consist of deposits in member banks of the Federal Reserve System. Section 13 authorizes Federal land banks to deposit their securities and current funds subject to check with any member bank of the Federal Reserve System. Section 27 authorizes the Federal Reserve Banks and member banks of the Federal Reserve System to buy and sell farm loan bonds. THE LIBERTY BOND ACTS. Deposits of proceeds of sales of Liberty bonds.—Section 7 of the First Liberty Bond Act, approved April 24, 1917, section 8 of the Second Liberty Bond Act, approved September 24, 1917, and section 8 of the Third Liberty Bond Act, approved April 4,1918, authorize the Secretary of the Treasury to deposit with banks and trust companies, proceeds arising from the sale of Liberty bonds, certificates of indebtedness, and war savings stamps, and exempts such deposits from the reserve requirements of national banks or member banks. THE WAR FINANCE CORPORATION ACT. Discount of notes of member banks when secured by bonds of the War Finance Corporation.—Section 3 of the War Finance Corporation Act, approved April 5, 1918, authorizes the Federal Reserve Banks to discount direct obligations of member banks secured by bonds of the War Finance Corporation and to use notes so secured, if it becomes necessary, as a basis for Federal Reserve notes. Depositaries and fiscal agents of War Finance Corporation.—Section 15 of the War Finance Corporation Act, approved April 5, 1918, as amended by the Victory Loan Act, approved March 3, 1919, authorizes the War Finance Corporation to deposit its reserve fund in member banks or in Federal Reserve Banks, and authorizes Federal Reserve Banks to act as fiscal agents and depositaries of the War Finance Corporation. Section 20 amended section 5202 of the Revised Statutes by adding a sixth exception covering liabilities incurred under the provisions of the War Finance Corporation Act. Inasmuch as section 13 of the Federal Reserve Act had amended and reenacted section 5202 of the Revised Stautes, this in effect was an amendment to section 13 of the Federal Reserve Act. THE PITTMAN ACT. Issuances of $1 and $2 Federal Reserve Bank notes.—The act, approved April 23,1918, known as the" Pittman Act" or " An Act to conserve the gold supply/' etc., provides that the Federal Reserve Banks may be permitted or required by the Federal Reserve Board, at the request of the Secretary of the Treasury, to issue Federal Reserve Bank notes in any denomination, including denominations of $-1 and $2 against the security of United States certificates of indebtedness or of one-year United wStates gold notes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

326 ANNUAL REPORT FEDERAL RESERVE BOARD. TRADING WITH THE ENEMY ACT. Control of foreign exchange transactions.—The trading with the enemy act, as amended by the act approved September 24, 1918, authorizes the President to use any agency he might select to control foreign exchange transactions. Under authority of this act the Federal Reserve Board was designated to perform this function as the agency of the Secretary of the Treasury. ACT OF OCTOBER 22, 1919. This act amended section 5202 of the Revised Statutes by adding a seventh exception covering liabilities created by the indorsement of accepted bills of exchange payable abroad, actually owned by the indorsing bank and discounted at home or abroad. Inasmuch as section 13 of the Federal Reserve Act had amended and reenacted section 5202 of the Revised Statutes, this amendment in effect was an amendment to section 13 of the Federal Reserve Act. TRANSPORTATION ACT OF 1920. Section 210 (d) of the Transportation Act of 1920, approved February 28, 1920, provides that the Interstate Commerce Commission or the Secretary of the Treasury may call upon the Federal Reserve Board for advice and assistance with respect to any loan from the United States to a railroad under authority of section 210 of the act, or any application for such loan. APPROPRIATION ACT OF MAY 29, 1920. Abolition of Subtreasuries.—That part of the Appropriation Act approved May 29, 1920, w^hich relates to the " Independent Treasury" provides for the abolition of the Subtreasuries from and after July 1, 1921, and authorizes the Secretary of the Treasury, in his discretion, to transfer any or all of the duties and functions of the Assistant Treasurers or the Subtreasuries to the Treasurer of the United States, or the mints or assay offices, or to utilize any of the Federal Reserve Banks acting as depositaries or fiscal agents of the United States, for the purpose of performing any or all of such duties and functions, notwithstanding the limitations of section 15 of the Federal Reserve Act. The Secretary of the Treasury is further authorized to assign any or all the rooms, vaults, equipment, and safes or space in the buildings used by the Subtreasuries to any Federal Reserve Bank acting as fiscal agent of the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ACTS OF STATE LEGISLATURES. 327 ACTS OF STATE LEGISLATURES IN OPPOSITION TO PAR COLLECTION SYSTEM. ACT OF MISSISSIPPI LEGISLATURE. AN ACT TO prevent the Federal Reserve System from forcing the banks of this State into what is known as the parring of checks, drafts, bills, etc. (commonly known as "cash items"); and for that purpose making it mandatory on the banks of this State to charge exchange on such "cash items"; and fixing the rates of such exchange. SECTION 1. Be it enacted by the Legislature of the State of Mississippi, That for the purpose of providing for the solvency, protection, and safety of the banking institutions of Mississippi, the established custom on the part of the banks of this State to charge a service fee (commonly called " exchange ") for the collecting and remitting, by exchange or otherwise, the proceeds of checks, drafts, bills, etc. (commonly known among banks as "cash items") is hereby declared to be the law of this State; and the banks of this State, both State and national, shall continue to make such charge as fixed by custom when such '' cash items " are presented to the payer bank for payment through or by any bank, banker, trust company, Federal reserve bank, post office, express company, or any collection agency, or by any other agency whatsoever; and the amount of such charge is hereby fixed at one-tenth of 1 per cent of the total amount of such ''cash items" so presented and paid at any one time, and not less than 10 cents on any one such transaction; provided, however, no such charge shall be made on checks or drafts given or drawn in settlement of obligations due the State of Mississippi or any subdivision thereof, or of the United States. And that no such charge can be made by banks for the collection of checks deposited with said banks, where the check is drawn on any other bank in the same municipality, city, town, or village, this being the long-established custom of such banks. And provided that nothing in this act shall be deemed to be mandatory upon the banks to charge exchange on checks or drafts payable to a person in this State, and drawn on a bank, trust company, or person within or without the State, but it shall be optional with such banks whether they shall charge exchange on checks or drafts payable to a person within this State, and drawn on a bank, trust company, or person within or without this State. SEC. 2. That no officer in this State shall protest for nonpayment any such "cash item " when such nonpayment is solely on account of the failure or refusal of any of said agencies to pay such exchange; and there shall be no right of action, either at law or in equity, against any bank in this State for a refusal to pay such cash item, when such refusal is based alone on the ground of the nonpayment of such exchange. SEC. 3. That if for any reason the courts should hold that the national banks in this State are not required to charge and collect such exchange, still this act shall remain in full force and effect as to all other banks in this State; and in the event of such holding by the courts, or the refusal of any national bank in this State to comply with this act, then it shall be optional with State banks located in the same municipality with a national bank or State banks which are members of the Federal Reserve System as to whether such charge shall be made. SEC. 4. That this act shall take effect and be in force from and after its passage. Approved March 6, 1920. ACT OF LOUISIANA LEGISLATURE. To prevent the Federal Reserve System from forcing the banks of this State into what is known as the . parring of checks, drafts, bills, etc. (commonly known as "cash items"); and for that purpose making it optional on the banks of this State to charge exchange on such "cash items"; and fixing the rates of such exchange. SECTION 1.—Be it enacted by the General Assembly of the State of Louisiana, That for the purpose of providing for the solvency, protection and safety of the banking institutions of Louisiana, the established custom on the part of the banks of this State to charge a service fee (commonly called exchange) for collecting and remitting by exchange or otherwise the proceeds of checks, drafts, bills, etc. (commonly known among banks as "cash items"), is hereby declared to be the law of this State; and the banks of this State, both State and national, shall have the right to make such charge as fixed by custom when such "cash items" are presented to the payer bank for payment, through or by any bank, banker, trust company, Federal reserve bank, postoffice, express company, collection agency, or by any other agency whatsoever; and the amount of such charge shall not exceed one-tenth of one per centum of the total amount of such "cash items" so presented and paid at any one time, and the minimum charge shall be ten cents; provided, however, that no such charge shall 45525°—21 22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

328 ANNUAL REPORT FEDERAL RESERVE BOARD. be made on checks or drafts given or drawn in settlement of obligations due the State of Louisiana or any subdivision thereof, or of the United States. And that no such charge can be made by banks for the collection of checks deposited with said banks, when the check is drawn on any other bank in the same municipality, city, town or village, this being the long-established custom of such banks. And, provided that nothing in this act shall be deemed to be mandatory upon the banks to charge exchange on checks or drafts payable to a person in this State, and drawn on a bank, trust company or person within or without this State, but it shall be optional with such banks whether they shall charge exchange on checks or drafts payable to a person within this State, and drawn on a bank, trust company or person within or without this State. SEC. 2. That no officer in this State shall protest for nonpayment any such "cash items " when such nonpayment is solely on account of the failure or refusal of any of said agencies to pay such exchange; and there shall be no right of action, either at law or in equity, against any bank in this State for a refusal to pay such cash item, when such refusal is based alone on the ground of the nonpayment of such exchange. SEC. 3. Be it further enacted, etc., That if for any reason the courts shall hold that the national banks in this State are not required to charge and collect such exchange still this act shall remain in full force and effect as to all other banks in this State; and in the event of such holding by the courts, or the refusal of any national bank in this State to comply with this act, then it shall be optional with State banks located in the same municipality with a national bank or State banks which are members of the Federal Reserve System as to whether such charge shall be made. SEC. 4. Be it further enacted, etc., that all laws or parts of laws in conflict herewith be and the same are hereby repealed. Approved. ACT OF SOUTH DAKOTA LEGISLATURE. AN ACT Entitled, An act to regulate exchange charges; to prohibit notaries from protesting unpaid items; to prevent the embarrassment of the State banks, and declaring an emergency. SECTION 1. Be it enacted by the Legislature of the State of South Dakota, That the banks of this state may charge a service fee for collecting and remitting by exchange or otherwise checks, drafts, bills, etc., commonly known as " cash items "and the banks of this state may make such charge when such "cash items" are presented to the payer bank for payment through any bank, banker, trust company, Federal Reserve Bank, Post Office, express company, or any collectors' agency, or by other agency whatsoever; and the amount of such charge is hereby fixed at one-tenth of one per cent of the total amount of such cash items so presented and paid at any one time, and not less than ten cents on any one transaction, provided, however, that no such charge can be made by banks for collecting a check presented to said banks where the check is drawn on any bank in the same municipality, city, town, or village and does not bear an out-of-town indorsement. SEC. 2. That any officer or notary public who shall protest checks for nonpayment where payment is refused solely on account of the presenter's refusal to pay exchange, shall be guilty of a misdemeanor, and there shall be no right of action either in law or in equity against any bank in this state for a refusal to pay such cash item when such refusal is based alone on the ground of the nonpayment of such exchange. SEC. 3. That whenever one or more checks on any bank in the hands of a single holder or holders for an aggregate sum exceeding amount of such bank's legal reserve required to be kept in its vault shall be presented on the same date and payment thereof demanded, and said bank may elect to make such payment in exchange instead of cash. SEC. 4. Whereas this Act is necessary for the immediate support of existing institutions of this state, an emergency is declared to exist and this act shall take effect and be in force from and after its passage and approval. Approved, July 3, 1920. ACT OF GEORGIA LEGISLATURE. AN ACT TO amend an act approved August 16, 1919, entitled "An act to regulate banking in the State of Georgia; * * * to provide for the payment of checks when presented by banks or trust companies, either in currency or in exchange, and fixing the rate of such exchange; * * *.', SECTION 1. Be it enacted by the General Assembly of the State of Georgia, and it is hereby enacted by authority of the same, That from and after the passage of this Act, the Act approved August 16, 1919, entitled "An Act to regulate banking in the State of Georgia; to create the Department of Banking of the State of Georgia; to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ACTS OF STATE LEGISLATURES. 329 provide for the incorporation of banks, and the amendment, renewal, and surrender of charters; to provide penalties for the violation of laws with reference to banking and the banking business; and for other purposes," be amended in the following particulars, to-wit: •fc #• -K * # •* •£ Amendment to Section 27, Article 19: By inserting in Section 27, Article 19, after the body of said section and before the proviso, the words "provided that the reserve against savings and time deposits may be invested in bonds of the United States or of this State at the market value thereof,'' and by adding at the end of said Section the following: "And provided that a bank shall have the right to pay checks drawn upon it when presented by any bank, banker, trust company, or any agent thereof, either in money or in exchange, drawn on its approved reserve agents, and to charge for such exchange not exceeding one-eighth of 1 per cent of the aggregate amount of the checks so presented and paid." # # -a- *• #• * •* SEC. 2. Be it further enacted, That all laws and parts of laws in conflict with this Act are hereby repealed. Approved, August 14, 1920. ACT OF ALABAMA LEGISLATURE. To further regulate the business of banking in the State of Alabama and to regulate the charge for exchange by banks and to regulate the protest of checks. SECTION 1. Be it enacted by the Legislature of Alabama, That hereafter banks in Alabama shall charge for exchange not exceeding one-eighth of one per centum when paying or remitting for checks drawn upon them; that whenever a check or checks are forwarded or presented to a bank for payment by any Federal Reserve Bank, express company or post-office employee, other bank, banker, trust company, or by any agent or agents thereof, or through any other agency or individual, the paying bank or remitting bank may pay or remit the same, at its option, either in money, or in exchange drawn on its reserve agent or agents in the city of New York or in any reserve city within the Sixth Federal Reserve District; and, at its option, it may charge for such exchange not exceeding one-eighth of one per centum of the aggregate amount of the checks so presented and paid; provided, that the minimum charge may be ten cents. SEC. 2. That hereafter it shall be unlawful for any person or notary public, or other official in this State to protest any check for nonpayment, when payment is declined solely on the ground that the paying bank exercises its option to collect exchange on such check, not exceeding one-eighth of one per centum of the amount of such check, or the minimum charge of ten cents as set forth in Section 1 hereof; and any person, notary public, or other official violating this section shall be responsible for all damages to all interested persons or corporations. SEC. 3. That all laws and parts of laws in conflict herewith be and the same are hereby repealed; that this act shall become effective thirty days after passage and approval by the Governor. Approved, September 30, 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 ANNUAL REPORT FEDERAL RESERVE BOARD. OPINION OF CIRCUIT COURT OF APPEALS IN ATLANTA PAR COLLECTION CASE. The following is the opinion, filed November 19, 1920, of the United States Circuit Court of Appeals, Fifth Circuit, in the so-called "Par Clearance" case instituted against the Federal Reserve Bank of Atlanta, last January. The opinion affirms the decision of the District Court of the Northern District of Georgia and, in a full discussion of the points at issue, holds that the Federal Reserve Banks have the right to collect checks, drawn on nonmember banks which refuse to remit at par, by having such checks presented at the counters of the drawee banks, and that the case is one of which the United States district court has jurisdiction. IN THE UNITED STATES CIRCUIT COURT OF APPEALS, FIFTH CIRCUIT. AMERICAN BANK & TRUST COMPANY ET AL., APPELLANTS, V. FEDERAL RESERVE BANK OF ATLANTA, GA., ET AL., APPELLEES. Before Walker and Bryan, circuit judges, and Grubb, district judge. GRUBB , District Judge: This is an appeal from a decree in equity of the District Court of the United States for the Northern District of Georgia, dismissing the bill or petition for want of equity. The suit was originally brought in the Superior Court of Fulton County Ga., and was removed to the District Court of the United States for the Northern District of Georgia, by the appellee, the Federal Reserve Bank of Atlanta. The appellants were State banks of Georgia, not members of the Federal Reserve System. The relief prayed for in the petition filed in the State court > was an injunction against the appellees, restraining them from collecting checks drawn on appellants "except in the usual and ordinary channel of collecting checks through correspondent banks or clearing houses," the purpose being to prevent collection through agents presenting the checks over the banks' counter. The appellants moved to remand the cause to the State court, which was denied, and the bill was dismissed on the appellees' motion to dismiss for want of equity. The appeal presents the questions of the correctness of the rulings of the district court (1) in refusing to remand the case, and (2) in dismissing the Dill on the merits. (1) The jurisdictional amount is conceded to be present. There was no diversity of citizenship claimed. Removal was granted because the cause was considered to be one arising under the Constitution and laws of the United States. This because (1) the defendant, the Federal Reserve Bank, was incorporated under an act of Congress, and was neither a railroad corporation nor a national banking association; and (2) because the appellants' petition or bill, as amended, introduced a Federal question into the record, in that it charged the acts of the defendants, sought to be enjoined, to be ultra vires of the powers of the appellee, the Reserve Bank, granted by the Federal Reserve Act and its amendments. If the district court had original jurisdiction of the cause of action for either or both of the reasons mentioned, the cause was properly removed. The appellants contend that the Federal Reserve Bank is a national banking association, the presence of which as a party defendant would not introduce a question arising under the laws of the United States, and that there is no other such question presented by the appellants' petition or bill. We think the United States district court had original jurisdiction of the cause of action for both of the reasons assigned. The case of Osborn v. Bank of the United States (9th Wheat., 738), supported by many subsequent decisions of the Supreme Court, settles the question of the j urisdiction of the Federal court in cases in which one of the parties is a corporation, which owes its creation to an act of Congress, unless another act of Congress has withdrawn such j urisdic tion. Nor is it important whether the Federal incorporation occupies the position of plaintiff or of defendant in the action. This is true unless a long line of Supreme Court decisions, in which jurisdiction was sustained upon this ground, without reference to the position of the corporation in the line-up of the parties, be disregarded. From this follows the right of a Federal incorporation, made a defendant in a cause in a State court, to remove the cause to the Federal court, unless prohibited by an act of Congress. (Texas & Pacific Railway Co. v. Cody, 166 U. S., 606-609; Washington & Idaho R. R. Co. v. Coeur D'Alene Ry. Co., 160 U. S., 177-193.) Congress has withdrawn jurisdiction only in cases of railroad companies and national banking associations. The contention of appellants is that the Federal Reserve Bank of Atlanta is a national banking Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ACTS OF STATE LEGISLATURES. 331 association within the meaning of the act of July 12, 1882 (c. 290); the judiciary act of March 3, 1887, as corrected by the act of August 13, 1888 (c. 886, sec. 4); and by section 24 of the Judicial Code of 1911. The prohibiting clause of the latter is: "And all national banking associations established under the laws of the United States shall, for the purpose of all other actions against them, real, personal, or mixed, and all suits in equity, be deemed citizens of the States in which they are respectively located. " If this language applies to the Federal Reserve Banks, it withdraws jurisdiction from the Federal courts in cases in which they are parties and in which no other ground of jurisdiction appears in the record. We do not think it can be held to apply. At the time of the original limitation of jurisdiction in the act of July 12, 1882, and at the time of its renewals in the judiciary act of 1887, and in the Judicial Code of 1911, Federal Reserve Banks Were unknown. The only national banking associations then existent Were the national banks organized under the national banking laws. The question is whether Congress intended to include within this designation banks to be subsequently created of the nature of the Federal Reserve Banks. The answer will depend upon the result of a comparison instituted between the national banks and the reserve banks, and is to be determined, not so much by points of identity (for all banks have many such), but by points of difference. The important differences between national banks and reserve banks, so far as the solution of this question is concerned, are (1) the disparity in the number of each class, and (2) that the reserve banks are banks of deposit and discount for other banks only and not for the general public. There are many othei important differences, but we think the two mentioned are determinative. The one class, small in number, acts as governmental fiscal agencies with no general clientele; the other class serves the public generally and locally, and are necessarily numerous. That all the provisions of the national banking act could be made applicable appropriately or safely to the class of reserve banks is clearly impossible. Yet the same reasoning that Would apply the limitation of jurisdiction imposed upon national banks to reserve banks would make it necessary to apply all other limitations against and grants in favor of national banks to reserve banks. If the Reserve Banks are national banking associations within the meaning of the act of July 12, 1882, and its successors, for one purpose, they are so for all purposes of the national banking laws. Such a conclusion would be a dangerous one, and lead to unforseeable consequences. We think it safer to conclude that Congress intended national banking associations to include only those that Were then being created or those of a kindred nature that might thereafter be created; and that the differences between ordinary banks of deposit and discount with the public as customers and banks whose only permissible stockholders and customers are the Government and other banks, and which are more governmental agencies than private institutions, are not within the purview of national banking associations as contemplated by Congress when it enacted the limitation upon the jurisdiction of national banking associations, In view of the paucity in number of the reserve banks, and their more intimate relation to the Government, and their more remote contact with the general public, Congress may well have found reason not to withdraw the jurisdiction of the Federal courts from them by reason of their Federal incorporation, though it had done so in the case of national banks. There is no express withholding of such jurisdiction. To imply it would necessarily lead to other implications so far reaching and difficult to anticipate that we do not think it should be implied. If the fact of Federal incorporation of the Reserve Banks confers jurisdiction on the Federal court, the fact that the officers of the appellee bank are made individual codef end ants with it and that they are citizens of Georgia does not prevent removal. (Matter of Dunn, 212 U. S., 374.) (2) The amendment to the bill or petition of appellants charged that the acts of the appellees sought to be enjoined, if committed, would be committed in excess of the powers of the Federal Reserve Bank of Atlanta, and in violation of the provision of the Federal Reserve Act. Paragraph 9 of the amendment charges that "the coercive measures, now threatened, are not only not authorized or required by the terms of the Federal Reserve Act, which includes the charter of defendant Reserve Bank, but express provision is found therein for the performance of all clearing-house functions, therein imposed in the regular way and through orderly banking channels, applicable to nonmember banks as well as member banks. Wherefore plaintiffs charge that the threatened coercive measures are ultra vires the charter of defendant Reserve Bank and the execution thereof by the individual defendants would be illegal and should be enjoined." The purpose of the petition or bill was not to enforce the collection of compensation for services availed of by the defendant Reserve Bank at their reasonable value under the common law right. It was to compel the defendant bank to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 ANNUAL REPORT FEDERAL RESERVE BOARD. avail itself of such services or, as an alternative, to abstain from handling the plaintiffs' check for collection. The bill prayed that the defendant bank be enjoined from presenting petitioners' or plaintiffs' checks for collection in any but the usual way through correspondence and remittance, Section 13 of the Federal Reserve Act provided that "no such charges (for remission) shall be made against the Federal Reserve Banks." Appellants' contention is that this prohibition prevents the Federal Reserve Banks from expending money in any way for the collection and remission of the proceeds of checks and drafts drawn on nonmember and nondepositing banks and that any attempt to collect such checks and drafts by presenting them over the counter to drawee banks which would not remit for them at par was unauthorized and ultra vires of the powers of the Reserve Banks under the Federal Reserve Act; and appellants ask that the defendant bank be enjoined from handling such checks and drafts in the manner stated for that reason. Appellee, the Reserve Bank, asserts its right under the same provision of the Federal Reserve Act to collect such checks and drafts by any method, provided it makes no payments to remitting banks for services in remitting. Plaintiffs' cause of action was the alleged wrong asserted by them to be caused by such collections. One ground upon which the wrong was urgeci is that the Reserve Bank is forbidden by the Reserve Act to make collection of checks and drafts in this manner. This presents for decision the proper construction of the quoted provisions of the Federal Reserve Act, and it was presented in the plaintiffs' own statement of their cause of action in the amendment to the bill and not as a suggested or anticipated defense which the defendants might be expected to set up as an answer to the plaintiffs' cause of action. The solution of this question depends upon the construction to be given sections 13 and 16 of the Federal Reserve Act and not merely to a chartered power of the defendant bank. The plaintiffs having injected this Federal question into their statement of their cause of action the case was thereby made removable as one arising under the laws of the United States. We think the district court of the United States properly entertained jurisdiction for both reasons. Coming to the merits, the appellants' cause of action is the prevention by injunction of the Federal Reserve Bank of Atlanta from collecting checks drawn on appellants' banks, in any other way than by correspondence and the remitting of the proceeds of the check by the bank on which it was drawn. The usage of the complaining banks had been to make a deduction from the amount of the check in remitting the proceeds to cover the so-called "exchange" or cost of remitting. This charge could only be applied in cases in which the check was forwarded through the mails to the drawee bank. If the check was presented over the counter of the drawee bank either by the payee or his agent, the full amount of the check was required to be paid, and the drawee bank was defeated in its endeavor to collect exchange on it. The purpose of the bill was to prevent the Federal Reserve Bank from handling checks on appellants and on other nonmember State banks except through the regular channel of correspondence or clearing. Section 13 of the Federal Reserve Act as amended prohibited the Federal Reserve Bank from paying for the cost of remission. Consequently it was disabled from collecting through the regular channel from all banks which insisted on deducting for the cost of remission. In the case of all such banks it had the alternatives of not handling their checks at all or of presenting them for collection over the counters of the drawee banks by agents, express companies, or the postal authorities One contention of the appellants is that the Federal Reserve Act prohibited the Reserve Banks from handling any check, the collection of which entailed any expense, to whomsoever payable; and that their endeavor to collect checks by presenting them at the counter of the drawee was ultra vires, because expense was necessarily incident to that method. Another contention of appellants is that though the Federal Reserve Bank had the lawful right to handle such checks it was making or intending to make an oppressive use of its right, by so exercising it as to amount to coercion or duress and with a wrongful and malicious motive. If the Federal Reserve Bank had availed itself of the services of the complaining banks in the remission of the proceeds of checks sent them for collection through the mails, in view of their known usage to deduct for exchange it would have been liable for the reasonable value of such services, except for the statutory inhibition against it. The purpose of the bill, however, is not to collect compensation for services rendered and to which the banks had a property right; but to compel the Federal Reserve Bank to avail itself of services, which it was unwilling to and disabled from accepting, by restraining it from using any method which did not require the use of such services. Complaining banks had no property right that was infringed by the refusal of the Federal Reserve Bank to avail itself of their services in remitting or that a court of equity could be called upon to protect. It was under no legal duty to accept the services of the complaining banks, even had there been no statutory obstacle to its doing so. It also had the legal right to present the checks of the com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ACTS OF STATE LEGISLATURES. 333 plaining banks to them for payment singly or in numbers over their counters and it was the absolute duty of the complaining banks to pay the full amount of such checks without deduction, when so presented. This is disputed by appellants only because of the statutory prohibition against the Federal Reserve Banks paying the cost of remission of the proceeds of checks collected by it. It is contended that this provision not only prohibited the Reserve Banks from paying exchange to remitting banks on which the checks were drawn, but also from paying expense of any kind or to any person for collecting checks; and that as a consequence the Federal Reserve Banks were without power to handle any checks for collection, where such collection was attended with expense of any kind. If so, it would follow that the endeavor to collect checks over the counter through paid agents was within the prohibition of the Federal Reserve Act as amended and ultra vires. Whether appellants' construction of the prohibiting clause is correct depends upon the purpose it was intended to subserve. Appellants' contention is that its purpose was to conserve the assets of the Reserve Bank. Appellees' contention is that it was to aid in accomplishing a uniform par clearance system. In view of the purpose of Congress to effect the latter object, we think the appellees' construction is the correct one, and that the prohibition is limited to a charge against and payment of the charge to a remitting bank, and does not prevent the Federal Reserve Banks from expending money for collection of checks in any other way in an endeavor to accomplish a uniform system of par clearance. It follows that the acts of the Federal Reserve Bank complained of are within its legal powers. Conceding that they were ultra vires solely because entailing an unauthorized disposition of the banks' assets, the appellants and intervenors, who were neither stockholders nor creditors of the Reserve Bank, would have no standing to complain of such a disposition, because of a collateral injury to them. The right to make complaint on that ground would be confined to the United States or to individuals who were injured by the depletion of the banks' assets. If the purpose of the prohibition was altogether to save expense to the Federal Reserve Banks and if the statute evinced no policy to prevent the Reserve Banks from handling checks of nonmembers and nondepositing banks, if it incurred no expense, the mere incidental injury that appellants suffered from the handling of such checks would give it no right to complain of an expenditure from which it could suffer no injury. The Federal Reserve Act does not only not evince a purpose to deny to the Reserve Bank the power to collect checks of nonmember and nondepositing banks, but exhibits a general policy to encourage a uniform and universal system, of par clearance, which could only be accomplished by conferring power upon the Reserve Bank to handle checks drawn on all banks upon any terms that might be essential except the payment to the remitting bank of compensation for remitting. The appellants contend further that, even if the Federal Reserve Bank had the right to handle checks of nonmember banks by presenting over the counter, it could not exercise that right oppressively; that it was threatening to do so, and should therefore have been enjoined. The prayer of the bill is not limited to an oppressive use of the method complained of but extends to any use of it whatsoever. The bill seeks to enjoin the appellee bank "from collecting or attempting to collect any check against petitioners or against any other bank in like condition, who may become a party hereto, except in the usual and ordinary channel of collecting checks through correspondent banks or clearing houses, said channels being well established and well understood by defendants and all others familiar with the banking business." Appellants' complaint is of the method and not of an abuse of it. The effect of the writ prayed for would be to entirely prevent the appellee bank from collecting checks in any other way than by transmission to the drawee bank, and the remission of the proceeds by the drawee bank through the mails; and so to prevent their collection by presentation over the counter even though presented regularly and without accumulation. The right to the relief sought is also based upon the doctrine of conspiracy. An illegal conspiracy is not predicable upon the doing of a lawful thing by lawful means, even when done in concert or combination. The bill fails to show a concert or combination that would amount to a conspiracy in law, though its object or trie means by which it was to be accomplished were unlawful. The acts complained of were those of the defendant, the Federal Reserve Bank. No legal conspiracy could exist between it and its officers, the other defendants. The amended bill charges a conspiracy between the Federal Reserve Bank of Atlanta and the Federal Banks of other districts, upon the theory that all the Federal Reserve Banks are under control of the Federal Reserve Board. The Federal Reserve Banks of other districts have no power to act upon the petitioners or the intervenors. Their jurisdiction in that respect is confined to their own districts. Being without power to injure the complaining banks they could not be members of a conspiracy against such banks. The members of the Federal Reserve Board are not charged as conspirators. That other Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 ANNUAL REPORT FEDERAL RESERVE BOARD. Reserve Banks had taken coercive steps against State banks in their districts to enforce the par clearance policy, as charged on hearsay information in the amended bill, has no bearing on the cause of action relied upon by appellants in this case. Appellants can take nothing from the doctrine of conspiracy. The principle that one must so use his property as not to unnecessarily and maliciously injure his neighbor, even though his act is otherwise lawful, is also invoked. Conceding that the accumulating of checks, and their presentation, when accumulated, with theintent to embarrass andinjure the drawee bank, might constitute an actionable wrong and one that might be prevented by injunction; we do not think the amended bill presents any such case. There is no specific charge in the bill of any threat to present the checks in any accumulated or oppressive manner, on which a court of equity would be justified in acting. Nor does the bill charge the appellee bank with acting from a merely malicious motive if that is material. It does aver that the purpose of the appellee was to compel the appellants to accept the lesser of two evils and to remit at par for checks drawn upon it. If this charge was borne out by the exhibits, which it is not, it would not constitute legal duress, on which a legal complaint could be predicated. The exhibits show that the adoption of a system of universal par clearance was advocated in good faith by the appellee bank as a proper banking policy and as well by Congress and the Federal Reserve Board. The adoption of appropriate means by the appellee bank to accomplish this end can not with any propriety be attributed to malice on its part against appellants and other banks in like condition. Nor does the adoption of the method of presenting checks over the counters of the drawee bank imply an attempt to coerce them into becoming member or depositing banks. The Federal Reserve Bank was interested to supply a universal clearance at par for its member and depositing banks. It could accomplish this only by accepting from its member and depositing banks all checks tendered it by them upon whatever banks drawn. If drawn upon a nonmember and nondepositing bank, which refused to remit at par, it was disabled under the statute from handling such checks through the method of transmission of the checks and remittance of the proceeds through the mails. It could only collect such checks by presentation in person to the drawee bank. It is therefore reasonable to suppose that its declared purpose of making such presentations was in furtherance of its policy of furnishing complete clearing facilities to its member banks, and was not for the purpose of injuring or destroying the drawee banks, or of coercing them into becoming member or depositing banks with it. It constituted an essential step without which universal par clearance was not possible of accomplishment. We conclude that the district court had jurisdiction and that its decree dismissing the bill for want of equity was without error and it is therefore affirmed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHECK CLEARING. 335 REPLY TO SENATE RESOLUTION RELATIVE TO CHECK CLEARING. [66th Congress, 2d session. Senate Document No. 184.| LETTER FROM THE GOVERNOR OF THE FEDERAL RESERVE BOARD TRANSMITTING, IN RESPONSE TO A SENATE RESOLUTION OF JANUARY 19, 1920, A COMMUNICATION SUBMITTING A REPORT AS TO ALLEGED COERCIVE MEASURES ATTEMPTED TO MAKE STATE BANKS SUBMIT TO RULES MADE BY THE FEDERAL RE- SERVE BOARD OR ANY FEDERAL RESERVE BANK. JANUARY 28, 1920.—Referred to the Committee on Banking and Currency and ordered to be printed. FEDERAL KESEKVE BOARD, Washington, January 26, 1920. The PRESIDENT OF THE SENATE, Washington, D. C. SIR: I have the honor to acknowledge receipt of a resolution of the Senate of the United States, dated January 19, 1920— Requesting the Federal Reserve Board to inform the Senate whether the board or any Federal reserve bank, under instructions or with the consent or knowledge of said board, has resorted to any method of coercion to compel State banks to join the Federal reserve system, or by threats or other coercive means has attempted to require such State banks to submit to any rules or regulations made by the Federal Reserve Board or any Federal reserve bank. In order that the Senate may have a full and complete understanding of the position of the board with reference to the matters upon which it is understood information is requested in its resolution, the board desires to submit a brief review of the development of the system of check clearing and collection which is now in force in the several Federal reserve districts, together with a summary of those provisions of the law and the amendments thereto under wilich that system has been inaugurated and operated. Section 16 of the Federal reserve act provides, in part, that the Federal Reserve Board— May at its discretion exercise the functions of a clearing house for such Federal reserve banks * * * and may also re juire each such bank to exercise the functions of a clearing house for its member banks. In accordance with what is understood to be the purpose of this provision of the law, the Federal Reserve Board, with the view ultimately of establishing a universal or national system of clearing iiitersectional balances as well as bank checks and drafts, has established a gold-settlement fund through which daily clearings between Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

336 ANNUAL REPORT FEDERAL RESERVE BOARD. 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. The gold-settlement fund commenced operations in May, 1915, and has proved a remarkably effective medium for the expeditious and economical transfer of credits from one section of the country to another, thereby forming a delicate balance wheel tending to equalize interest rates in all sections. One year later in May, 1916, the Federal Reserve Board issued a circular, entitled "Check Clearing and Collection" (Exhibit A), to all member banks stating that under authority of section 16 of the Federal reserve act it would require each Federal reserve bank to " exercise the functions of a clearing house for its member banks," commencing June 15, 1916, or as soon thereafter as possible. The system was in fact inaugurated July 15, 1916. As outlined in that original circular the check collection facilities of each Federal reserve bank were at first to be limited primarily to "checks drawn on all member banks, whether in its own district or other districts," although it was stated that— It is proposed to accept at par all checks drawn upon nonmember banks when such checks can be collected by the Federal reserve banks at par. * * * It is the purpose of the federal Reserve Board to have the collection system developed so as to embrace the collection of all checks on nonmember banks and private banks, and while this can not be done immediately, steps will be taken to afford these facilities as rapidly as possible. Immediately upon the inauguration of the system, the Federal Reserve Bank of Boston by reason of its having taken over the Boston Country Clearing House was able to collect checks drawn upon any bank, member or nonmember, located in New England, and in other districts many nonmember banks agreed to remit at par from the outset. (See press statement, July 1.8, 1916, issued by the board three days after the check collection system commenced its operations. Exhibit B.) At that time—July, 1916—Federal reserve banks were expressly required by section 16 to "receive on deposit at par from member banks or from Federal reserve banks checks and drafts drawn upon any of its depositors." There was no option vested in the reserve banks. With reference to checks drawn upon nonmember banks the boaid had been advised by its counsel that although there was no provision of law expressly requiring a Federal reserve bank to receive for collection checks drawn upon such banks, they might properly do so, if they desired, in the exercise of their implied powers conferred by that part of section 4 which authorized them to exercise "such incidental powers as shall be necessary to carry on the business of banking within the limitations prescribed by this act." The right to receive checks for collection and credit is a right incidental both to the right to receive deposits and to the right to act as a "clearing house." In fact, all banking corporations, State and national, have almost universally exercised the right to collect checks as an incident to their general banking powers and without any express authority in the law. All the more justification is there for a Federal reserve bank to dj so, because of its express power to act as a clearing house. But even if there were ever any doubt as to that implied power, Congress on September 7, 1916, within three months after the inauguration of the original check collection system, amended section 13 by an act which, among other things, expressly permitted (but did not Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHECK CLEABItfG. 337 require) Federal reserve banks to receive deposits of all " checks and drafts payable upon presentation." So that there can be no doubt as to the existing right of a reserve bank in its discretion to accept for collection checks drawn upon nonmember banks as well as checks upon member banks. On June 21, 1917, Congress again amended the terms of section 13 by further defining the collection powers of Federal reserve banks. The purpose of that amendment was twofold. It was, first, to permit nonmember banks to become clearing members of the Federal reserve bank—that is, to permit such institutions to avail themselves of the privileges of the check collection system upon the maintenance with the reserve bank of a deposit sufficient to offset items in transit, without becoming regular members. That amendment was intended primarily for those nonmember banks which were ineligible for membership either because of a lack of sufficient capital or otherwise. It was, second, to permit both 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 it was expressly provided that— No such charges shall be made against the Federal reserve banks. This amendment is commonly referred to as the Hardwick amendment and represents the last change in the law in so far as it relates to the collection of checks. Subsequent to its enactment the Federal Reserve Board issued the existing regulation on "Check clearing and collection (Exhibit C), the principal changes being those providing for the clearing of checks for those nonmember banKs which desired to become clearing members under the act of June 21, 1917. Paragraph (1) of this regulation reads substantially as it did in the original circular: Each Federal reserve bank will receive at par from its member banks and from nonmember banks in its district which have become clearing members, checks drawn on all member and clearing member banks and on all other nonmember banks which agree to remit at par through the Federal reserve bank of their district. It will be noted that under the terms of this paragraph it is indicated that each Federal reserve bank will receive at par checks drawn on all member and clearing member banks and checks on all other nonmember banks which agree to remit at par. Since that last amendment of Congress and the issue of the present regulations in accordance therewith the par collection list has grown gradually until at the present time checks on approximately 26,000 of the 30,000 banks of the country can be collected expeditiously and economically at par for the banks and through them for the public at large. In the development of this par list the Federal Reserve Board has made only such efforts as it deemed consistent with both the purposes of the law and the rights of the banks in general. It has never resorted to any method of coercion to compel State banks to join the Federal Reserve System nor has it by threats or other coercive means attempted to require such State banks to submit to rules or regulations made by the Federal Reserve Board or any Federal reserve bank. Furthermore, the board has bever instructed or knowingly consented to any Federal reserve bank's adopting such means Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

338 ANNUAL REPORT FEDERAL RESERVE BOARD. in its efforts to extend its par list. Believing, however, that the purpose of the law itself and the needs and interests of the country as a whole would be better accommodated by the ability of the Federal reserve banks to collect for their member and clearing member banks all checks presented to them for that purpose, the board has consistently approved the efforts of the reserve banks to collect all checks upon whomsoever drawn, member banks, nonmember banks, or private banks whether or not they agree in advance to ; remit at par. But there are only three ways in which the holder of a check, whether an individual or a corporation, may lawfully and properly undertake its collections: (1) He may present it in person over the counter of the drawee bank for payment; (2) he may forward it to an agent more conveniently located geographically for the purpose of presentation through that agent to the drawee bank over its counter for payment; (3) he may forward it direct to the drawee bank for payment and remission therefor in cash or exchange. The Federal reserve banks in the operation of their check-collection systems have followed the third course in the case of checks drawn on member and nonmember banks which may have agreed to remit at par either in cash or satisfactory exchange, and whether cash or exchange is remitted the Federal reserve banks have generally provided postage or necessary costs of transportation covering the shipment to the reserve bank. Because of the fact, however, that the so-called Hardwick amendment to section 13 not only prohibits a bank charging but also prohibits the Federal reserve bank paying a charge for the "payment or collection of checks and drafts and remission therefor by exchange or otherwise/' Federal reserve banks have been impelled to forego the collection of checks in this manner in any case where the drawee bank does not care to remit at par. (See Opinions of the Attorney General of the United States, Exhibits D and E.) The only other available means of making the collection is to employ some suitable agent for that purpose. Not to adopt that means would necessitate a flat refusal by the reserve bank to handle the item for collection in any manner, and the board and the reserve banks feel that that would now be an evasion of one of the ultimate purposes for which the law was enacted; that is, the establishment of a universal country wide par-collection system and the resultant elimination of the burdensome delays and expenses incident to the old indirect routing system. In this connection the attention of the Senate is respectfully directed to a copy of a form letter which was sent by the Federal Reserve Board to nonmember banks and other parties interested denning the questions of law and policy involved in the matter of collecting all checks at par (Exhibit F). When the par-collection system was first put into effect, it was impossible for practical reasons to undertake the collection of all checks drawn on nonmember banks, but now that there are relatively so few of those banks not on the par list the reserve banks are able usually to effect the collection of their checks by means of appropriate agents. There is no longer any reasonable excuse for refusing to handle such items for member and clearing-member banks wherever collection by means of an agent is practicable. This agent may be a member bank located in the same city as the drawee bank or possibly a nonmember bank, an express company, or any other suitable person Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHECK CLEARING. 339 or corporation able to make the collection over the counter of the drawee bank. The reserve banks in extending their collection facilities to include the checks of those nonmember banks which have declined to remit at par have generally, by letter or in person, undertaken to explain that the reserve banks could no longer decline to handle checks drawn upon those nonmember banks, and that inasmuch as they did not care to remit at par and inasmuch as the reserve bank could not lawfully pay exchange, it would be necessary to make their collections in the only other way legally possible over the counter either in cash or suitable exchange. But this explanation by the reserve bank has always been intended to be an expression of regret, not a threat—as some few banks have been only too glad to construe it. (Typical forms of letters used by the Federal reserve banks in this connection are attached hereto as Exhibit G.) So far as the Federal Reserve Board is aware, the Federal reserve banks themselves have never been anything other than both patient and considerate in explaining the necessity for exercising what is after all an undisputed legal right to ask for payment over the counter—an inherent right in the holder of any check or bank draft. If in some few instances an agent of a reserve bank has, through an excess of zeal, adopted any other attitude in his efforts to procurre par members or in explaining the unavoidable alternative that must be adopted by the reserve bank in the event that the nonmember bank does not want to remit at par, it has been without the authority or consent of either the Federal Reserve Board or the Federal reserve banks themselves. It has been alleged that some of the reserve banks have intentionally held up items drawn on a nonmember bank for the purpose of presenting them in bulk and demanding payment in cash so as to embarrass the drawee bank and thus compel it to remit at par. In order fully to advise the Senate on this particular matter the Board, upon receipt of the Senate's resolution, telegraphed to each Federal reserve bank (Exhibit H) specifically requesting to be advised whether or not such methods had been employed, and if so with what purpose. The replies of the several reserve banks are attached hereto (Exhibit I). In this connection the attention of the Senate is respectfully directed particularly to the reply of the Federal Reserve Bank of Kansas City. This telegram, it is believed, indicates the obstacles which were arbitrarily placed in the way of the Federal reserve bank in the making of its collections in the more usual manner and explains to some extent the reason that the Federal reserve bank in that instance was impelled to send its own agents at stated intervals to make the necessary collection of items which had been forwarded to it by its member banks. While that telegram from the Federal Reserve Bank of Kansas City, as well as the replies from the Federal reserve banks of Dallas, Minneapolis, and Chicago indicate that in a few instances they have accumulated cheeks when collecting through an agent, it has never been for the purpose of embarrassing the drawee bank, but has been done solely in pursuance of a practice generally followed by large commercial banks in various parts of the country either on account of the physical difficulty of sending a daily messenger or because of the relatively high overhead charge in sending a messenger to collect a small check. J3ut even instances Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 ANNUAL REPORT FEDERAL RESERVE BOARD. of that nature were reported by only 4 of the 12 Federal reserve banks and are not general practices in the case of those 4. The replies of the banks themselves are explanatory of their purpose. In conclusion the Federal Reserve Board desires to state that the development of the Federal reserve par collection system has been the result of the most conscientious and painstaking thought and efforts of the board and officers of the several Federal reserve banks with the sole purpose not of compelling a relatively few unwilling State banks to become clearing members but of affording to the great majority of banks in the country the member and clearing member banks, now over 26,000 out of approximately 30,000, a complete and effective system of check collection involving a minimum of effort, time, and expense, a system whose facilities are now offered free of charge to the banks of the country and through them to the public at large. The burden that some banks have in the past put upon the commerce of the country through arbitrary and excessive exchange charges does not need comment. That a relatively small number of nonmember banks should not want to become members of the clearing system or should not want to remit at par is, of course, their own concern and the Federal Reserve Board and the Federal reserve banks have not and will not dispute their right to decline to do so. But that those same few nonmember banks, which through their member bank correspondents are able to obtain the benefits of the par collection system gratis, should decline to become clearing members can not and should not deter the Federal reserve banks in the exercise of their undouted legal right—the right to collect over the counter in cash or satisfactory exchange, by means of an agent, checks drawn upon a bank which for one reason or another does not care to remit at par for checks mailed to it directly. The Federal Reserve Board submits this report of the steps taken by it to put into effect these provisions of the Federal reserve act which they believe will in time prove to be one of its greatest, benefits—a universal country-wide system of par check collections scientifically conceived by Congress and expeditiously and economically operated by the Federal reserve banks in the interest of the country at large without discrimination in favor of any one class or classes. Respectfully submitted. W. P. G. HARDING, Governor. EXHIBIT A. CIRCULAR NO. 1. SERIES OF 1916 FEDERAL RESERVE BOARD, Washington, May 1, 1916. CHECK CLEARING AND COLLECTION. To MEMBER BANKS: The Federal Reserve Board is empowered, under section 16 of the Federal reserve act, to require each Federal reserve bank to— "Exercise the function of a clearing house for its member banks." After very thorough investigation and many conferences with the governors of Federal reserve banks on this subject, the Federal Reserve Board has determined to exercise its authority and to offer to the member banks, and through them to the public, the machinery of the Federal reserve banks for the operation of a check collection and clearing system which it is believed, with the cooperation of member Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHECK CLEARING. 341 banks, will afford a direct, expeditious, and economical system of check collecting and settlement of balances. The date for the inauguration of this system is expected to be June 15, 1916, or as soon thereafter as the Federal reserve banks can complete preparations for undertaking this work. Member banks in each district will in due course receive from their Federal reserve bank full information as to the terms and all necessary details of the arrangements but for the information of all concerned the general terms may be stated to be as follows: (1) In order that no inconvenience may be experienced the plan will follow as closely as practicable the practice which long experience has developed between country banks and their reserve city correspondents. Eacn Federal reserve bank will receive at par from its member banks checks drawn on all member banks, whether in his own district or other districts. It is also proposed to accept at par all checks drawn upon nonmember banks when such checks can be collected by the Federal reserve banks at par. Each Federal reserve bank will receive at par from other Federal reserve banks checks drawn upon all member banks of its district and upon all nonmember banks whose checks can be collected at par by the Federal reserve bank. It is the purpose of the Federal Reserve Board to have the collection system developed so as to embrace the collection of all checks on nonmember banks and private banks, and while this can not be done immediately, steps will be taken to afford these facilities as rapidly as possible. The Federal reserve banks will prepare a par list of all nonmember banks, to be revised from time to time, which will be furnished to member banks. Immediate credit entry upon receipt subject to final payment will be made for all such items upon the books of the Federal reserve bank at full face value, but the proceeds will not be counted as reserve nor become available to meet checks drawn until actually collected, in accordance with the best practice now prevailing. (2) Checks received by a Federal reserve bank on its member banks will be forwarded direct to such member banks and will not be charged to their accounts until advice of payment has been received or until sufficient time has elapsed within which to receive advice of payment. (3) In the selection of collecting agents for handling checks on nonmember banks member banks will be given the preference. (4) Under this plan Federal reserve banks will receive at par from their member banks checks on all member banks, and on nonmember banks whose checks can be collected at par by any Federal reserve bank. Member banks will be required by the Federal Reserve Board to provide funds to cover at par all checks received from, or for the account of, their Federal reserve banks: Provided, however, lhat a member bank may ship lawful money or Federal reserve notes from its own vaults at the expense of its P ederal reserve bank to cover any deficiency which may arise because of and only in the case of inability to provide items to oftset checks received from or for the account of its Federal reserve bank. (5) Section 19 of the Federal reserve act provides that— 'The reserve carried by a member bank with a Federal reserve bank may, under the regulations, and subject to such penalties as may be prescribed by the Federal Reserve Board, be checked against and withdrawn by such member bank for the purpose of meeting existing liabilities: Provided, houever, That no bank shall at any time make new loans or shall pay any dividends unless and until the total reserve required by law is fully restored." It is manifest that items in process of collection can not lawfully be counted as reserve either by a member bank or by a Federal reserve bank. Therefore, should a member bank draw against such items the draft would be charged against its reserve if such reserve were sufficient in amount to pay it; but any resulting impairment of reserves would be subject to all the penalties provided by the act. Inasmuch as it is essential that the law in respect to the maintenance of required reserves by member banks shall be strictly complied with, the Federal Reserve Board will fix a penalty to be imposed upon member banks for encroaching upon their reserves. Member banks can at all times arrange to keep their reserves intact by rediscounting with their Federal reserve bank. (6) Each Federal reserve bank will determine by analysis the amounts of uncollected funds appearing on its books to the credit of each member bank. Such analysis will show the true status of the reserve held by the Federal reserve bank for each member bank and will enable it to apply the penalty for impairment of reserve. A schedule of the time required within which to collect checks will be furnished to each member bank to enable it to determine the time at which any item sent to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 ANNUAL REPORT FEDERAL RESERVE BOARD. its Federal reserve bank will be counted as reserve and become available to meet any checks drawn. (7) In handling items for member banks, a Federal reserve bank will act as agent only. It will require that each member bank authorize it to send checks for collection to banks on which checks are drawn, and, except for negligence, will assume no liability. .Any further requirements that the board may deem necessary will be set forth by the Federal reserve banks in their letters of instruction to their member banks. (8) The cost of collecting and clearing checks must necessarily be borne by the banks receiving the benefit and in proportion to the service rendered. An accurate account will be kept by each reserve Ifank of the cost of performing this service and the Federal Reserve Board will, by rule, fix the charge, at so much per item, which may be imposed for the service of clearing or collection rendered by the reserve banks, as provided in section 16 of the Federal reserve act. CHARLES S. HAMLIN, Governor. SHERMAN ALLEN, Asristant Secretary. EXHIBIT B. PRESS STATEMENT. JULY 18, 1916. The Federal Reserve Board gave out the following statement to-day: "The new country-wide clearing system was inaugurated on July 15 in all the Federal reserve banks. Reports as of the close of business on July 17 show that the operations started out in a very satisfactory manner, and it is especially gratifying to the board to record the cordial cooperation of banks and bankers. The public doubtless understands that through this method all national banks and all State banks which are members of the Federal Reserve System have the privilege of using the Federal reserve banks as clearing houses for the clearing and collection of checks. Not only may checks drawn against other member banks be collected at par, but checks drawn against most nonmember banks can also be so collected at a minimum of expense to the depositing bank. "The Boston district, by reason of having taken over the Boston Country Clearing House, was able to make the most nattering exhibit, so that in New England checks drawn against a bank, whether member or nonmember, are collected at par without exception. In the other districts there is no difficulty in collecting checks at par, even when drawn against nonmember State banks, provided there are national banks in the same city or town. There is more difficulty where these State banks are located in towns where there are no national or other member banks, but even in these cases, the reports in the hands of the board show that a very large percentage of nonmember State banks have agreed to remit at full face value through the Federal reserve banks. "Some time must necessarily elapse before the new collection system will be used to its capacity, but the Federal Reserve Board believes confidently that the country has now witnessed the inauguration of the most effective check collection system that has ever been devised, and that each passing week will add to the use and appreciation of the system by the banking and business communities of the country. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHECK CLEARING. 343 EXHIBIT C. REGULATION J. SERIES OF 1917. (Superseding Regulation J of 1916.) CHECK CLEARING AND COLLECTION. Section 16 of the Federal reserve act authorizes the Federal Reserve Board to require each Federal reserve bank to exercise the function of a clearing house for its member banks, and section 13 of the Federal reserve act, as amended by the act approved June 21, 1917, authorizes each Federal reserve bank to receive from any nonmember bank or trust company, solely for the purposes of exchange or of collection, deposits of current funds in lawful money, national-bank notes, Federal reserve notes, checks, and drafts payable upon presentation, or maturing notes and bills, provided such nonmember bank or trust company maintains with its Federal reserve bank a balance sufficient to offset the items in transit held for its account by the Federal reserve bank. In pursuance of the authority vested in it under these provisions of law, the Federal Reserve Board, desiring to afford both to the public and to the various banks ot the country a direct, expeditious, and economical system of check collection and settlement of balances, has arranged to have each Federal reserve bank exercise the functions of a clearing house for such of its member banks as desire to avail themselves of its privileges and for such State banks and trust companies as may maintain with the Federal reserve bank a balance sufficient to qualify it as a clearing member under the provisions of section 13. Each Federal reserve bank shall exercise the functions of a clearing house under the following general terms and conditions: (1) Each Federal reserve bank will receive at par from its member banks and from nonmember banks in its district which have become clearing members, checks 1 drawn on all member and clearing member banks and on all other nonmember banks which agree to remit at par through the Federal reserve bank of their district. (2) Each Federal reserve bank will receive at par from other Federal reserve banks and will receive at par from all member and clearing member banks, regardless of their location, for the credit of their accounts with their respective Federal reserve banks, checks drawn upon all member and clearing member banks of its district and upon all other nonmember banks of its district whose checks can be collected at par by the Federal reserve bank. The Federal reserve banks will prepare a par list of all nonmember banks, to be revised from time to time, which will be furnished to member and clearing member banks. (3) Immediate credit entry upon receipt subject to final payment will be made for all such items upon the books of the Federal reserve bank at full f>ace value, but the proceeds will not be counted as part of the minimum reserve nor become available td meet checks drawn until actually collected, in accordance with the best practice now prevailing. (4) Checks received by a Federal reserve bank on its member or clearing member banks will be forwarded direct to such banks and will not be charged to their accounts until sufficient time has elapsed within which to receive advice of payment. fM In the selection of collecting agents for handling checks on nonmember banks, which have not become clearing members, member banks will be given the preference. (6) Under this plan each Federal reserve bank will receive at par from its member and clearing member banks checks on all member and clearing member banks and on all other nonmember banks whose checks can be collected at par by any Federal reserve bank. Member and clearing member banks will be required by the Federal 1 A check is generally defined as a draft, or order upon a bank or order upon a bank or banking house purporting to be drawn upon a deposit of funds, for the payment at all events of a certain sum of money to a certain person therein named, or to him or his order, or to bearer, and payable instantly on demand. 45525°—21 23 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 ANNUAL REPORT FEDERAL RESERVE BOARD. Reserve Board to provide funds to cover at par all checks received from or for the account of their Federal reserve banks: Provided, however, That a member or clearing member bank may ship currency or specie from its own vaults at the expense of its Federal reserve bank to cover any deficiency which may arise because of and only in the case of inability to provide items to offset checks received from or for the account of its Federal reserve bank.1 (7) Section 19 of the Federal reserve act provides that— "The required balance carried by a member bank with a Federal reserve bank may, under the regulations and subject to suqh penalties as may be prescribed by the Federal Reserve Board, be checked against and withdrawn by such member bank for the purpose of meeting existing liabilities: Provided, however, That no bank shall at any time make new loans or shall pay any dividends unless and until the total balance required by law is fully restored." It is manifest that items in process of collection can not lawfully be counted as part of the minimum reserve balance to be carried by a member bank with its Federal reserve bank. Therefore, should a member bank draw against such items the draft would be charged against its reserve balance if such balance were sufficient in amount to pay it; but any resulting impairment of reserve balances would be subject to all the penalties provided by the act. Inasmuch as it is essential that the law in respect to the maintenance by member banks of the required minimum reserve balance shall be strictly complied with, the Federal Reserve Board, under authority vested in it by section 19 of the act, hereby prescribes as the penalty for any deficiency in reserves a sum equivalent to an interest charge on the amount of the deficiency of 2 per cent per annum above the 90 day discount rate of the Federal reserve bank of the district in which the member bank is located. The board reserves the right to increase this penalty whenever conditions require it. For the purpose of keeping their reserve balances intact member banks may at all times have recourse to the rediscount facilities offered by their respective Federal reserve banks. (8) Each Federal reserve bank will determine by analysis the amounts of uncollected funds appearing on its books to the credit of each member bank. Such analysis will show the true status of the reserve held by the Federal reserve bank for each member bank and will enable it to apply the penalty for impairment, of reserve. A schedule of the time required within which to collect checks will be furnished to each bank to enable it to determine the time at which any item sent to its Federal reserve bank will be counted as reserve and become available to meet any checks drawn. (9) In handling items for member and clearing member banks, a Federal reserve bank will act as agent only. The board will require that each member and clearing member bank authorize its Federal reserve bank to send checks for collection to banks on which checks are drawn, and, except for negligence, such Federal reserve bank will assume no liability. Any further requirements that the board may deem necessary will be set forth by the Federal reserve banks in their letters of instruction to their member and clearing member banks. Each Federal reserve bank will also promulgate rules and regulations governing the details of its operations as a clearing house, such rules and regulations to be binding upon all member and nonmember banks which are clearing through the Federal reserve bank. (10) The cost of collecting and clearing checks must necessarily be borne by the banks receiving the benefit and in proportion to the service rendered. An accurate account will be kept by each reserve bank of the cost of performing this service and the Federal Reserve Board will, by rule, fix the charge, at so much per item, which may be imposed for the service of clearing or collection rendered by the reserve banks, as provided in section 16 of the Federal reserve act. 1 In accordance with instructions issued by the Federal Reserve Board on Apr. 24, 1917, the various Federal reserve banks have issued circulars setting forth the conditions under which their respective member banks may draw drafts on their reserve bank accounts payable with or through any other Federal reserve bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHECK CLEARING. 345 EXHIBIT D. MARCH 21, 1918. SIR: YOU have requested my opinion as to whether the limitations contained in section 13 of the Federal reserve act relating to charges for the collection and payment of checks can be held to apply to State banks which are neither members of the Federal Reserve System nor depositors in Federal reserve banks. As originally enacted, the first paragraph of section 13 reads 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 upon solvent member banks, payable upon presentation, or, solely for exchange purposes, may receive from other Federal reserve banks deposits of current funds in lawful money, national-bank notes, or checks and drafts upon solvent member or other Federal reserve banks, payable upon presentation." In section 16, apparently as the basis of a system of check clearing or collection, it is provided that Federal reserve banks shall receive on deposit at par checks and drafts on member and other Federal reserve banks; and the Federal Reserve Board is authorized to fix by rule the charges to be collected by member banks from patrons whose checks are cleared through the Federal reserve bank any charge for the service of clearing or collection rendered by the Federal reserve bank. It will be noted that under the first paragraph of section 13 in its original form the only classes of banks which might be depositors in and thus clear through a Federal reserve bank were its member banks and other Federal reserve banks, and the only checks and drafts specified as receivable on deposit were checks and drafts drawn upon member banks or upon other Federal reserve banks. The acts of September 7, 1916, and June 21, 1917, so amended the first paragraph of section 13 as to extend the clearing and collection facilities of the Federal Reserve System to include checks and drafts generally, to make these facilities directly available to nonmember banks, and to establish the limitations as to charges referred to in the question submitted. The paragraph as so amended reads as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 ANNUAL REPORT FEDERAL RESERVE BOARD. "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; or, solely for purposes of exchange or of collection, may receive from other Federal reserve banks deposits of current funds in lawful money, national-bank notes, or checks upon other Federal reserve banks, and checks and drafts, payable upon presentation within its district, and maturing notes and bills payable within its district; or, solely for the purposes of exchange or of collection, may receive from any nonmember bank or trust company deposits of current funds in lawful money, national-bank notes, Federal reserve notes, checks, and drafts payable upon presentation, or maturing notes and bills: Provided, Such nonmember bank or trust company maintains with the Federal reserve bank of its district a balance sufficient to offset the itemp in transit held for its account by the Federal reserve bank: Provided further, That nothing in this or any other section of this act shall be construed as prohibiting a member or nonmember bank from making 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." [Italics mine.] The limitations as to charges referred to in the question submitted are contained in the second proviso quoted above. This proviso, apparently recognizing an existing right of member and nonmember banks to make reasonable charges for the collection or payment of checks and drafts and remission therefor by exchange or otherwise provides (1) that these charges are "to be determined and regulated by the Federal Reserve Board, but in no case to exceed 10 cents per $100," but (2) that "no such charges shall be made against the Federal reserve banks." Clearly these limitations apply to national banks, which are compelled to be member banks, to such State banks as become member banks by voluntarily accepting the terms and provisions of the Federal reserve act, and to such oth^r State banks as do not become member banks but by becoming depositors in Federal reserve banks upon the conditions specified avail themselves directly of the facilities of the Federal reserve clearing system. The specific question to be determined is whether these limitations apply to nonmember State banks which do not become depositors but checks upon which may pass through Federal reserve banks in process of clearing or collection. The theory and scheme of the Federal reserve legislation seems inconsistent with the purpose on the part of Congress to subject State banks against their will to Federal control or regulation. State banks are not compelled to become members of the Federal reserve system or depositors therein. Those possessing the necessary qualifications are, however, invited to become members. They are not only free to accept or decline, but if they accept remain at liberty to withdraw from the system. (9fec. 9.) By section 13 as amended, State banks not desiring to become members or too small to be eligible for membership are likewise invited to share in the clearing and collection facilities of the system by becoming depositors in Federal reserve banks. But they may accept or reject the invitation, and if they become depositors may close their accounts at their pleasure. It would accordingly seem that the limitations referred to ought not to be regarded as intended to be imposed upon State banks not connected with the Federal reserve system as members or depositors, against the will of such banks, unless that intention clearly appears. The term "nonmember bank" as used in the proviso may reasonably be construed as referring to a nonmember bank that has become a depositor as authorized in the preceding provisions of the paragraph. If this term is so construed, obviously the provision requiring charges "to be determined and regulated by the Federal Reserve Board, but in no case to exceed 10 cents per $100," will have no application to nonmember State banks which are not depositors in a Federal reserve bank. The broad language of the concluding clause, "no such charges shall be made against the Federal reserve banks," may be construed not as directed against State banks which are not depositors, but merely as specifying a condition upon which checks may clear through the Federal reserve banks—in effect a prohibition against the payment of such charges by the Federal reserve banks. Under this construction, member banks and. nonmember banks which are depositors in the Federal reserve banks will be subject to the limitations in the proviso, but nonmember banks which are not depositors will not be subject to the limitations. All, however, will have to adjust their charges among themselves and with their own depositors, the Federal reserve banks being prohibited from paying such charges. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHECK CLEARING. 347 This construction seems to be in harmony with the intention of the framers of the amendment to section 13 embodying the above-mentioned proviso. The act of June 21, 1917, amending section 13 and other sections of the Federal reserve act, as originally introduced in both the House and Senate contained no part of the (second) proviso, the section in the proposed amended form ending with the preceding proviso. The Senate, adopting an amendment offered by Senator Hardwick, added the second proviso in the following form: 11 Provided further, That nothing in this or any other section of this act shall be construed as prohibiting a member or nonmember bank from making reasonable charges, 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." (55 Cong. Rec, 2065.) It was thought the effect of the Hard wick amendment would be to recognize the right of any bank upon which checks are drawn to make charges against the Federal reserve bank through which such checks might be cleared or collected. The Hardwick amendment was opposed by the Federal Reserve Board, as appears from letters from its governor to Senator Owen and Congressman Glass, chairmen of the respective Committees on Banking and Currency of the Senate and House (pp. 2071, 3795). The President also called attention to the seeming effect of the amendment in a letter to Senator Owen, reading as follows: "I have been a good deal disturbed to learn of the proposed amendment to the Federal reserve act which seems to contemplate charging the Federal reserve banks for payment of checks cleared by them, or charging the payee of such checks passing through the reserve banks with a commission. I should regard such a provision as most unfortunate and as almost destructive of the function of the Federal reserve banks as a clearing house for member banks, a function which they have performed with so much benefit to the business of the country. I hope most sincerely that this matter may be adjusted without interfering with this indispensable clearing function of the banks" (p. 4083). In conference, apparently as the result of the letters of the governor of the Federal Reserve Board and the President, the proviso took its present form, two changes being made by the conferees: First, the charges which member or nonmember banks may make were made subject "to be determined and regulated by the Federal Reserve Board "; and, second, the final clause was added,"but no such charges shall be made against the Federal reserve banks." In presenting the conference report to the Senate, Senator Owen emphasized the importance of not interfering with the clearing functions of the Federal reserve banks, explained that under the proviso as amended "the banks can charge each other for making these accommodations if they like, and they can adjust that to their own satisfaction with one another without troubling the reserve banks," and apparently conceded that State banks not connected as members or depositors with the Federal Reserve System could not be subjected to Federal legislation (p. 4083). Mr. Glass in presenting the report to the House, said: "The Congress has no control whatsoever over nonmember banks. It can not regulate their charges and will not regulate them if this Hardwick amendment should prevail. * * * This House has no control over the nonmember bank in this matter. Even the Federal Reserve Board has no control over their operations unless they voluntarily join the voluntary collection system established by the Federal Reserve Board'' (p. 3794). And further, "no nonmember bank that does not voluntarily join the collection system established by the Federal Reserve Board will be specifically affected. No law that we pass here can directly affect them. The only way they can be affected is incidental" (p. 3795). It thus seems clear that the proviso was understood by Congress as designed to protect the clearing functions of the Federal reserve banks and not directed at State banks which have no connection as members or depositors with the Federal Reserve System and upon which it was considered the effect of the proviso could be only incidental. It may be argued, and is probably true, that the proviso will necessarily affect the practice of State banks, though not members or depositors, as to making charges for the payment of checks drawn upon them. With the concentration of reserve balances in Federal reserve banks as required by the Federal reserve act, the Federal reserve clearing system may offer the only adequate and convenient facilities for clearing or collecting checks drawn upon banks at a distance, and depositors may find it inadvisable to maintain accounts with banks upon which checks can not be cleared or collected by the use of these facilities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 ANNUAL REPORT FEDERAL RESERVE BOARD. The Federal reserve act, however, does not command or compel these State banks to forego any right they may have under the State laws to make charges in connection with the payment of checks drawn upon them. The act merely offers the clearing and collection facilities of the Federal reserve banks upon specified conditions. If the State banks refuse to comply with the conditions by insisting upon making charges against the Federal reserve banks, the result will simply be, so far as the Federal reserve act is concerned, that since the Federal reserve banks can not pay these charges they can not clear or collect checks on banks demanding such payment from them. From what has been said it follows that in my opinion the limitations contained in section 13 relating to charges for the collection and payment of checks do not apply to State banks not connected with the Federal Reserve System as members or depositors. Checks on banks making such charges can not, however, be cleared or collected through Federal reserve banks. Respectfully, (Signed) T. W. GREGORY, Attorney General. The PRESIDENT, The White House. EXHIBIT E. APRIL 30, 1918. MY DEAR GOVERNOR: I acknowledge receipt of your letter of the 19th instant with reference to my opinion of March 21, 1918, holding that Federal reserve banks are prohibited from paying the charges for collection and payment of checks and drafts mentioned in the first paragraph of section 13 of the Federal reserve act. In a memorandum by the general counsel of the American Bankers Association, which you inclose, the point is raised that the prohibition against the charges referred to must be confined to checks owned by the Federal reserve bank as distinguished from checks deposited to be cleared or collected for the account of a member or depositor. You ask to be advised whether the board correctly interprets my opinion as implying that no such distinction can be recognized and that no member bank can under any circumstances make any charge against its Federal reserve bank in connection with the collection or payment of checks deposited with the Federal reserve bank as provided in the paragraph mentioned. The reason for the suggested distinction is not apparent. I do not understand why checks deposited with a Federal reserve bank to be cleared or collected can not be considered as owned by the bank. As the basis of the check-clearing system contemplated by the Federal reserve act, the Federal reserve banks are required by section 16 to "receive on deposit at par," unconditionally, the checks therein specified drawn on Federal reserve and member banks. If the phrase "receive on deposit" is given its ordinary signification, it seems clear that the Federal reserve bank becomes the owner of the checks so deposited, title to the checks passing to that bank and the depositors receiving immediate credit therefor. (Burton v. United States, 196 U. S., 283; Security National Bank v. Old National Bank, 241 Fed., 1, and cases therein cited at pages 10 to 12.) The first paragraph of section 13, as amended to extend the clearing facilities of the Federal reserve banks to nonmember banks and to include checks generally, requires each nonmember bank availing itself of these facilities to maintain with the "Federal reserve bank of its district a balance sufficient to offset the items in transit held by the Federal reserve bank." As so amended, the paragraph may be regarded as at least authorizing the Federal reserve abnk to receive on deposit from nonmember depositors as well as from member banks all classes of checks to be cleared or collected, taking the title thereto and giving credit therefor to the depositing banks. As a Federal reserve bank may thus become the owner of all the checks cleared or collected through it, there appears to be no basis in the act for drawing a distinction between checks owned by the Federal reserve bank and checks deposited with it to be cleared or collected. But even if the checks received could be classified on the basis suggested, the language of the paragraph seems to preclude the idea of excluding checks deposited to be cleared or collected from the checks as to which charges are prohibited. The charges which the Federal reserve banks are prohibited from paying by the final clause, "no such charges shall be made against the Federal reserve banks," obviously include the " charges * * * for collection or payment of checks and drafts and remission therefor by exchange or otherwise" mentioned in the preceding clause. The checks authorized by the paragraph to be deposited with the Federal reserve bank, upon being received by that bank, are to be collected from and paid by the banks upon which they are drawn. To say that charges in connection with the pay- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHECK CLEARING. 349 ment of these checks made by the banks drawn upon and collected from the Federal reserve bank are not made against that bank seems to do violence to the ordinary meaning of the words used, regardless of whether the charges are ultimately borne by it or subsequently transferred to the banks by which the checks were deposited. Moreover, the legislative history of the amendment as referred to in the opinion shows clearly that the prohibition was directed primarily against the making of cha/ges in connection with the clearing of checks. It was a proposed amendment to the Federal reserve act, which apparently contemplated "charging the Federal reserve banks for payment of checks cleared by them " that the President opposed in his letter to Senator Owen. And it was to prevent the possibility of such charges being made that the final clause was added, which, as explained by Senator Owen, prevented "troubling the reserve banks" or "interfering with the clearing of checks at par by the reserve banks." (55 Cong. Rec, p. 3761.) I construe the first paragraph of section 13 as prohibiting member banks under any circumstances from making the charges therein referred to against Federal reserve banks. You are accordingly advised that the interpretation placed by the board upon my opinion of March 21 is correct. Respectfully, (Signed) T. W. GREGORY, Attorney General. Hon. W. P. G. HARDING, Governor Federal Reserve Board, Washington, D. C. EXHIBIT F. FEDERAL RESERVE BOARD, Washington, December 11, 1919. Subject: Questions of law and policy involved in matter of collecting all checks at par. DEAR SIR: In view of complaints which are being made from time to time concerning the policy of Federal reserve banks in collecting checks on all points in their respective districts at par, there is inclosed for your information a copy of a letter which was sent to a protesting nonmember bank in one of the districts, which defines the questions of law and policy involved. Very truly, yours, GOVERNOR. To CHAIRMEN AND GOVERNORS OF ALL FEDERAL RESERVE BANKS. DEAR SIR: Receipt is acknowledged of your letter of the in which you protest against the policy which has been adopted by the Federal reserve banks with the approval of the Federal Reserve Board in the matter of the collection of checks which are received by Federal reserve banks from their member banks or form nonmember banks which maintain clearing or collection accounts with them. 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 depositors." 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 call 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 per- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 ANNUAL REPORT FEDERAL RESERVE BOARD. missive there seems to be no question that the Tederal 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 ita 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 consumated 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 authorizating 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 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 alike, and it is making an earnest endeavor to carry out the laws as construed by the highest legal authority of the administrative branch of the Government. EXHIBIT G. FIRST LETTER TO THE NONMEMBER BANK. GENTLEMEN: YOU are doubtless aware of the fact that we have in the past been obliged to refuse to handle checks on your bank for the reason that we have not had a par arrangement with you. Federal reserve banks can not handle checks on banks under any arrangements which would cantemplate the paying of exchange because, under the Attorney General's interpretation of the law, they are not, under any circumstances, permitted to pay exchange. Our declining to handle checks drawn by your depositors has not in any case been intended as a reflection on your bank and we believe that you have not so considered it. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHECK CLEARING. 351 The campaign conducted by the Federal reserve banks for the addition of new pai points has reached such a stage that we do not feel-justified in any longer refusing to handle checks on banks located in what we must consider as being par territory. We would advise, therefore, that on and after November 15, we will discontinue refusing to handle checks on you, but will receive at par such checks as are offered to us and will forward them to you in our regular cash letters, accompanied by stamped, addressed envelopes for such convenience in making returns. Remittance should, in all cases, be made in exchange or its equivalent at par. We trust that this will meet with your approval and that we may receive your early advice to the effect that we may expect your cooperation in this important movement. SECOND LETTER TO THE NONMEMBER BANK. GENTLEMEN: Referring to our letter of November 28, we would say that we are to-day in receipt of checks on you which we have received at par in accordance with the Federal reserve act. These checks are being forwarded to you to-day in one of our regular cash letters accompanied by stamped, addressed envelope for your convenience in making returns. We anticipate par remittance in exchange or its equivalent and hope that we may receive your assurance that you will continue to remit at par for all checks drawn by your depositors which we may receive and forward to you in the usual course of business. THIRD LETTER TO NONMEMBER BANK. GENTLEMEN; We are in receipt of your remittance covering our cash letter of January 14, total $1,549.22 and note your deduction of $2.32 exchange. Practically all of the banks in have already agreed to remit to us at par for checks drawn by their depositors, received by us and forwarded in the usual course of business and we were hoping that the bank of , would also agree to cooperate with us in this important movement. We can not in justice to the great number of par banks in your vicinity decline to handle checks drawn on you, and since we are not permitted to pay exchange it necessarily follows that we must arrange to collect them at par. If we can not obtain a direct connection with your good bank, we will be obliged to make collection through other channels. We request therefore that hereafter if you can not remit at par, you be good enough to certify and return to us such checks as are forwarded to you in our cash letters. [Telegram.] FEDERAL RESERVE BOARD, Washington, January 20, 1920. GOVERNOR OF ALL FEDERAL RESERVE BANKS: Under a resolution adopted by the Senate yesterday Board is required to inform the Senate whether Federal Reserve Board or any Federal reserve bank under instructions or with consent of knowledge of board has resorted to any method of coercion to compel State banks to join Federal reserve system, or by threats or other coercive means has attempted to require such State banks to submit to any rules or regulations made by Federal Reserve Board or any Federal reserve bank. This is result of complaints made to Senates by State banks of efforts of Federal reserve banks to collect checks at par. Specific charge is made that Federal reserve banks hold back checks on small banks until they amount to considerable sums, then send messenger to make personal demand for payment in currency in order to embarrass payee bank and compel it to submit. Has such action been taken by your bank and if so, was it done with object of embarrassing payee bank or merely to reduce percentage cost of collection? Is it not the usual practice of larger banks in your district when they collect on nonmember banks by sending items direct to avail themselves of lower charges by holding back small items until they have round amounts of $100 or more, thus avoiding payment minimum charge of 10 or 15 cents on a $5 item? State primary purpose of the use of express companies or private agencies and give outline of any threats, oral or written, which may have been made by your employees or agents. Please wire answer. HARDING. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

352 ANNUAL REPORT FEDERAL RESERVE BOARD. EXHIBIT I. TELEGRAMS FROM THE 12 FEDERAL RESERVE BANKS REPLYING TO THE TELEGRAM OF THE FEDERAL RESERVE BOARD, DATED JANUARY 21, AND MARKED EXHIBIT H. BOSTON, MASS., January 21, 1920. Replying telegram 20th: This district has been all par practically since its inauguration of check-collection system. No collection by messenger or demands for payment in currency have been made by us except for a few days in one or two instances where nonmember banks failed to keep their promises to remit promptly. These cases were dealt with by forwarding checks for collection through express companies solely for the purpose of protecting Federal reserve bank against loss and ordinary methods of sending direct for remittances were readopted on receipt of satisfactory assurances that future remittances would be made promptly. It has never been practice of this bank nor, to my knowledge, practice of larger banks in this district to accumulate checks more than a day before forwarding for collection. MORSS, Governor Federal Reserve Bank of Boston. NEW YORK, January 22, 1920. Replying your telegram of 20th: First, this bank has never resorted to any method of coercion to compel State banks to join the Federal reserve system. Second, this bank has never attempted by threat or any coercive measure to require State banks to submit to any rule or regulation made by the Federal Reserve Board or any Federal reserve bank. Third, it has never been the policy of this bank to hold back any checks on any banks in the district for any purpose whatsoever. The only occasions—• perhaps not more than three or four—where this has been done were due to our inability to secure the presentation of the items by agents or express company, as, for, example, during the strike of express company employees about one year ago. Fourth, it has been the practice of collecting banks in this district when they collect on nonmember banks by sending items direct to hold back small items until they secure round amounts and thus avoid paying the maximum charge, but, as above stated, such practice has never been adopted or used by this bank. Fifth, the primary purpose of our use of express companies and private agents was, and is, to furnish a complete par-check collection system in this district for the use of our member banks, other Federal reserve banks, and through them for their member banks. This was the only method open to us to collect the checks drawn upon certain State banks and private bankers who had declined to remit at par for checks drawn upon them after the matter had been unsuccessfully taken up with these banks by letter, by personal visits, and by invitations to visit our bank. The appointment by us of agents for the collection of checks upon nonremitting State institutions was caused by their stamping their checks, "Not collectible through an express company," so that we had no other method of handling their checks. So far as we know and certainly not with our authority, have any threats, oral or written, been made by our agents. The total number of banks and bankers in this district upon which we are collecting checks is 1,702, of which but 4 State banks and 2 private bankers are being collected by express companies or agents. CASE, Federal Reserve Bank of New York. PHILADELPHIA, PA., January 21, 1920. Answering you telegram of yesterday, this bank has not used coercive methods and has deliberately refrained from any action savoring of a threat of any description either in securing membership in the Federal reserve system or in securing par collections throughout our district. Neither we, nor the larger banks in this district, have any occasion to hold back small items until they accumulate to some round amount. For a very brief period, not exceeding two weeks at most, we did use express companies, but we do not now use them nor any private agency in our collection service. Our policy has always been to invite application for membership from State institutions through excellence of our service and obvious advantages they may derive from such membership. PASSMORE, Governor Federal Reserve Bank of Philadelphia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHECK CLEARING. 353 CLEVELAND, OHIO, January 21,1920. Answering your wire this bank has not used coercive methods to compel State banks to join Federal reserve system. All State banks on par list have been obtained by persuasive methods. No threats other than statement by our representative that we were obliged to collect their checks in justice to State banks which have voluntarily agreed to remit at par and that if they will not agree to do so we will collect through the express company or private agent. Checks on only two banks, both located in Kentucky, now being collected through express company, none through agents. Before par list was completed in this district a number of large collecting banks made a practice of holding small items until total amount was sufficient to avoid minimum charge and to save postage no longer necessary to hold items for that reason. FANCHER. RICHMOND, January 21,. Answering wire January 20: The Federal reserve bank of Richmond has never taken any step to coerce or compel a State bank to join the system or to require such bank to submit to rules or regulations made by Federal Reserve Board or this bank. Referring to matter of par collection of checks drawn on nonmember banks following methods have been followed in Maryland and to some extent in West Virginia. As the board knows, out of 29.586 banks in the United States, checks on all except 4.000 are collectible at par. The collection facilities of the Federal reserve system are open to all banks, whether members or nonmembers; to the member banks directly, to the nonmember banks through their member correspondents, and such facilities are being used to an ever increasing extent. In justice, therefore, to the 25,500 and odd member and nonmember banks whose names are on the par list we feel that it is our duty to attempt by all fair and reasonable methods to collect for them the checks on the remaining 4,000 banks, many, if not all of whom, are collecting on par points through members of the system. As the law does not allow us to pay the exchange upon the collection of checks it is incumbent upon us to devise some means of collecting without the payment of exchange to the bank on which the checks are drawn. Our procedure has been and is now to correspond with the nonpar nonmember banks explaining the situation. Failing to obtain results special representatives are sent to present the facts and argue to the justice of our endeavor with the officers of the banks. In the comparatively few cases in which neither of these methods was successful we arranged to present checks daily through a local agent sele'cted by us; none, however, are acting at present. While it is in many places the custom of commercial banks to accumulate small items to avoid minimum exchange charges we have in no case accumulated items either for that purpose or for the purpose of embarrassing the bank by the presentation of checks amounting to an unusual sum at one time. On the contrary we have done everything in our power to avoid embarrassing situations and in the very few cases in which we have appointed agents we have instructed them to consult the convenience of the bank so far as it is practicable to do so, and under no circumstances to present checks in such a manner as to give rise in the community to any apprehension as to the standing of the bank or its ability to meet proper demands upon it in money. SEAY. ATLANTA, GA., January 20, 1920. The Federal Reserve Bank of Atlanta has never received any instructions from the Federal Reserve Board nor has it with the consent or knowledge of the Federal Reserve Board resorted to any method of coercion to compel State banks to join the Federal reserve system, nor has the Federal Reserve Bank of Atlanta by threat or other coercive means attempted to require such State banks to submit to any rule or regulations made by the Federal Reserve Board or this bank. This bank has never held back checks on small banks until they amounted to considerable sums, and then sent messengers to make personal demand for payment in currency. This bank has not so far collected through duly appointed employees, and only in few instances has it collected through express companies. In the latter case there w^ere no accumulations only those checks received in current day's work being sent forward to place of payment. It is the usual practice of large banks clearing out of town checks by sending direct to hold over for a day or so small checks until the aggregate reaches 100 or more, thus avoiding the payment of minimum charge of 10 or 15 cents which would be incurred on an item of small amount. The primary purpose of using express companies or paid employees to collect checks and drafts payable upon presentation drawn on banks that do not remit at par is to enable the Federal reserve banks to carry out Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

354 ANNUAL REPORT FEDERAL RESERVE BOARD. the provisions and intent of the Federal reserve act in so far as they relate to collection of checks and drafts payable upon presentation that are received on deposit from the sources named in the act. The act does not limit the checks that may be received on deposit to those drawn on member banks, and as it is clearly intended that we shall receive all checks and drafts payable upon presentation, and as section 13 interpreted by the Attorney General provides that no charges for remission shall be made against Federal reserve banks it of course follows that unless arrangements can be made with nonpar remitting banks to remit at par we must find a way of making collection that will not involve exchange charges. This bank has endeavored in every possible way to encourage nonmember banks to remit at par, and thus obviate the necessity of our arranging to present items for payment in cash and has from time to time offered to such nonmember banks the privilege of opening a clearing account for the purpose of collecting checks drawn on banks named in our par list, the balances so created to be used in remitting for items sent them by us, and any excess over the balance required against our average daily sendings to be subject to their order, we to inclose stamped envelope with each cash letter, and they to have the privilege of sending us in payment currency at our expense when more convenient. The privilege of opening a nonmember clearing account was offered so as to give them the benefit of our collection facilities if they desired to avail of them and not with the view of coercing them to become members of the Federal reserve system, for as a matter of fact many nonmember banks are not eligible from a standpoint of capital and requirement. There have been no threats, oral or wTitten, by any one connected with this bank. We have stated to nonmember banks that while the Federal reserve act does not permit us to pay exchange for the remittance of bank checks and drafts payable upon presentation, we can incur any cost that is necessary in order to carry out the purposes of the act, and that we would very much regret to be forced to adopt other methods of collection that would prove embarrassing, annoying, and expensive. ADELSON. CHICAGO, January 21, 1920. Replying to your wire, our policy in soliciting State bank membership is to point out its advantages and show where a State bank can be benefited by becoming a member. We certainly would not want any State bank to join the system unwillingly, or if it was not an advantage to it to do so. The same consideration is shown prospective State bank members as would be accorded them by a commercial bank soliciting their business. With regard to the collection at par of checks on nonmember banks, all such banks which were not on our par list January 1, 1919, have been visited by our representatives, who fully explained the advantages of the collection system, with a view to obtaining their friendly cooperation. When all banks in the States of Illinois, Indiana, and Iowa were placed on our par list there were a few which did not agree to remit for checks on them at par. Checks on these banks were forwarded through the express companies for collection, a practice which is legitimate and which has been used in commercial banks for many years. In a few cases, where we were unable to obtain satisfactory service from the local express agent, and also at points where there was no express office, we held the checks a few days, and presented them by our messenger at the bank's counters for payment rather than have our messenger make daily trips. We are at present collecting through the express company checks on only one bank in Illinois, eight banks in Indiana, seven banks in Iowa, which have not agreed to par their checks, and are collecting checks on one town in Indiana and two towns in Iowa through agents which we have appointed. Our solicitors in obtaining par points have been instructed at all times to endeavor to obtain the good will and cooperation of the nonmember banks, and that coercive measures must not be used. We know of no cases where our agents or employees used any threats, oral or written. MCKAY. ST. LOUIS, January 22, 1920. Replying to your telegram to-day. This bank has never at any time coerced State banks into making application to join the system. On the contrary, we have made every effort to explain to banks making application both the advantages and disadvantages of membership. We have not wished to have any bank a member that did not thoroughly understand the workings of the system and appreciate the advantages. In collecting at par checks on nonmember banks there are only a few instances where we have found it necessary to make such collections by express or agent. The following excerpt from a letter addressed to the secretary of the Illinois Bankers' Asso- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHECK CLEARING. 355 ciation, under date of November 20, 1919, is indicative of our views and the policypursued by us when it has been necessary to collect by express or agent: "One of our directors, Mr. Sam A. Ziegler, of Albion, 111., mentioned to me yesterday a conversation he has had with you, from which he understood that it was your impression that it was the policy of this bank to hold up checks for several days, presenting same at one time, and demanding cash in all cases where it has been necessary for us to use other than the mails as a means of collecting checks. We are glad of this opportunity to advise you that such is not the case. We invariably see that the checks that we may through necessity have to present at the counter of a bank for payment in cash be presented promptly, the same as if they were transmitted through the mails. There have been some few instances where the action of the bank in returning items to us has resulted in more than one day's items reaching them at one time. This, however, has been unavoidable, and due entirely to the action of the bank on which the items are drawn, and not us." Several of the larger commercial banks in this district make it a habit to accumulate checks in order to avoid payment of minimum charges on small amounts. Purpose of collecting by express or agent is to avoid payment of exchange, and to obtain actual payment at par without assuming liability which would result if we were to authorize our agent or the express company to accept draft in lieu of currency. There has never been any occasion for our making any threats either oral or written in connection with our services in collecting at par checks on nonmember banks. ATTEBERY, Deputy Governor. MINNEAPOLIS, MINN., January 21, 1920. Officers and employees of this bank have been cautioned repeatedly not to use any methods of coercion to compel State banks to join the Federal Reserve System. I have never heard this complaint from any State bank in this district, with the exception of one I called upon last summer that complained that they had been classed as unpatriotic because they had not joined the Federal Reserve System. I assured him that no such expression ever emanated from this bank, and upon further inquiry he intimated that the remark came from sources other than the Federal reserve bank or Federal Reserve System. As you know, we have conducted an active campaign for several years at a meeting to get State banks to remit at par with anything but satisfactory results. Early in December we wrote all nonpar banks in the States of Montana, North Takota, and Michigan and told them we planned putting all banks in those States on our par list January 1, 1920, and it was optional with them whether we presented the checks at their counter for payment in cash or whether they preferred to remit without deductions for collection charges or exchange in funds immediately available. Some of the banks elected to remit, others told us we could present checks at their counter, and others refused to reply to our letter of inquiry, with the result that we made arrangements with the express companies and a few postmasters to collect checks for us on approximately 60 banks. This number has since been reduced to 43. We are now advising nonpar banks in South Takota in the same manner, that all banks in that State will be placed on our par list February 1. As soon as facilities in our own bank warrant all banks in Minnesota and Wisconsin will be placed on a par basis. The officers and employees in charge of this campaign have been cautioned not to use any threats, but simply announce what we are going to do. I have just had them in my office, and they assure me no threats have been made by them. We have never held up a large amount of checks on any one. particular bank, so that they would be embarrassed when cash was demanded. However, it has been our policy not to send one small check for collection on a nonremitting bank because of the expense, but we have waited until we accumulated at least $100 in such checks. It has never been our intention to hold sufficient checks to be presented at one time so that the bank could not make payment in cash. Upon inquiry of the larger banks in Minneapolis I find that in the past they pursued a similar policy, but are not doing so at present. Our instructions to collecting express companies or private agencies are to present the checks and demand payment in cash, and if payment is not made, wire us immediately on items over $500 regarding the items unpaid. Our par point campaign has been conducted almost entirely by correspondence. We have never employed any representative to solicit nonpar banks in this district. Glad to furnish copies of our circular letters and telegrams, if you feel they are necessary. YOUNG. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 ANNUAL REPORT FEDERAL RESERVE BOARD. KANSAS CITY, January 21, 1920. Replying your telegram 20th: You are advised that—in so far as the Federal Reserve Bank of Kansas City, including its branches, is concerned—no method of coercion has been employed to compel State banks to join the Federal reserve system and no threats or other coercive means have been used or practiced to require such State banks to submit to rules or regulations made by the Federal Reserve Board or this bank. Under section 13, which prohibits Federal reserve banks from legally paying any fee to a member bank or nonmember bank for the collection and remittance of a check sent for collection, it has been necessary in certain cases to collect checks by such means as are available. In some cases there are no express companies and others where the express agents refuse for business reasons to handle collections. When such contingency arises and where we can not obtain a satisfactory local agent, it is necessary to send a messenger to present the checks at the counter of the payee. In cases where the payee bank is located in a distant town, for economic reasons we can not send messenger daily. About the only county in the tenth district where the banks have stubbornly resisted and treated with contempt our efforts to carry out the provisions of section 13 of the Federal reserve act as relate to collection of items at par is Pierce County, Nebr., all of the banks in which county are dominated to a greater or less degree by one Woods Cones, who has the moral support of C. A. McCloud, president of the First National Bank of York, Nebr., who is interested in several State banks also. The First National Bank of York for three years insisted upon charging this bank exchange on items sent to it and only desisted when advised by the comptroller that the publication of its statement showing as an asset action against the Federal reserve bank for exchange charges would be regarded as a misrepresentation of its condition. Until the development of the Federal reserve collection system it has been the practice of the city banks to hold small items against payee banks which charged exchange until such items amounted to at least $100, in order to avoid prohibitory charges on small items of $5 and $10. It is not our practice to accumulate any specific amount or to hold checks over even for one day when sending them out for collection by mail or express; but where it is necessary to send a messenger—as in the case of Pierce. Nebr., 118 miles from our branch at Omaha—the cost of such visits warrants us in accumulating several days' checks for collection at once, assuming, of course, that any payee bank that preferred to pay checks on it over the counter in cash rather than to remit exchange at par for same would be always prepared to liquidate such demands in that way. Feeling sure that the complaints referred to in your telegram originated from Pierce, Nebr., we feel justified in going into some details regarding the collections of items of that town. The bankers of Pierce, by intimidation or otherwise, have prevented use of the facilities common to the public; as, for instance, the express agent not only refused to handle our collections but refused to accept a shipment of currency tendered to him by our messenger. This necessitates a visit to Pierce by automobile in order to carry to the next town funds that are paid. The notaries of Pierce were intimidated or influenced to the point where they were not available to our messenger when asked to protest items payment on which was refused. This required our messenger to take with him a notary from another town to legally present and protest items when refused for any reason. About a week ago Cones, McCloud, and others called a meeting of the State bankers at Omaha to discuss the Pierce campaign of the Federal reserve bank. At this meeting Cones, the principal speaker at the meeting, is reported to have made certain false and misleading statements. MILLER. DALLAS, January 21, 1920. Answering your telegram date. The Federal Reserve Bank of Dallas has never through any of its officers or by any implied or direct sanction of the Federal Reserve Board, or its own board of directors, taken any steps toward or adopted any method of coercion to compel State banks to go into the system or has it by any threats implied or otherwiee attempted to require nonmember State banks to submit to any rules or regulations made by the Federal Reserve Board or itself. The Federal Reserve Bank of Dallas in collecting checks on nonmember banks has never done otherwise than to recognize its right under the Federal reserve act and the regulations of the Federal Reserve Board to receive from its member banks, other Federal reserve banks and the Treasurer of the United States, negotiable checks and drafts drawn on any solvent bank, banker or trust company in its district, and to present and collect the face value of such checks through the most readily available channel. It has endeavored to avoid presenting checks either through express companies or its bonded agents for payment at face value in cash without first giving drawee banks the opportunity and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHECK CLEARING. 357 privilege of receiving checks on them by mail directly from the Federal reserve bank and remitting all face value on receipt for those checks good on their books in convenient exchange or currency or coin at expense of Federal reserve bank. Being fully cognizant of the fact that as shown by statistics, full 95 per cent of commercial transactions are settled by the medium of checks and drafts and considering at all times the business and financial interests of the entire eleventh Federal reserve district as reflected in the activities of both member and nonmember banks, it does not desire to withdraw cash from small localities in payment of checks except where necessary to collect fully face value of solvent checks which it receives. Its management fully realizes that such method of collection is wholly unnecessary unless made incumbent upon the Federal reserve bank by the refusal of drawee banks to pay without deduction checks drawn on them by their depositors when presented through other channels than at their counter. They also fully realize and appreciate that drawee banks can pay checks of their depositors presented them by making mail remittances drawn against the proceeds of checks which they have received on deposit themselves. The necessity for shipping currency to distant centers to pay such checks is minimized by reason of commercial settlements being made by the remittance of checks, and any expense of transportation of such small amounts of currency as may be necessary to cover the difference is absorbed by the Federal reserve bank. The Federal Reserve Bank of Dallas has never with any intent to embarrass a drawee bank permitted checks to accumulate in its possession from day to day, but has to some extent followed the established practice of commercial banks which handle collections in bulk to allow small checks to accumulate until they amount to as much as $1,000 in order to reduce the percentage of cost of collection and handling to permit drawee banks to pay a . number of small checks in one transaction. It may be well to inform you that in some instances, due to the refusal of drawee banks to pay the full face value of checks of their depositors to express agents or bonded agents when such checks were presented at the counters of the drawee banks and payment demanded and by reason of the express agents not following instructions and uniform rules established by the companies which they represent, occasionally a volume of checks has been thrown back on our hands which added to those in transit and those received by us on the date of receipt of such returned checks were subsequently presented by an agent of this bank as the holder of such checks and payment demanded and received. However, even in such few cases of this description where embarassment to the bank was apparent our agent voluntarily accepted the bank's exchange in payment. VAN ZANDT, Governor. SAN FRANCISCO, January 21, 1920. Federal Reserve Bank of San Francisco has not resorted to any method of coercion to compel State banks to join the Federal reserve system nor by any threats or other coercive means has the Federal Reserve Bank of San Francisco attempted to require State banks to submit to any rules or regulations made by the Federal Reserve Board. This bank does not hold back checks on small banks or any banks until they amount to a considerable sum then send them by any means to make demand for payment in currency to embarrass or coerce banks. Such action has not been taken by this bank. It is not the practice of large banks in this district when collecting on nonmember nonpar banks to hold back small items until in round amounts they amount to $100, except our Portland branch reports some banks in Portland hold items for no longer than two days. The only instance of what might be construed as coercive or threatening statements have been statements oral or written made by officers of this bank from time to time the types of which were that "the Federal reserve banks are by law not permitted to pay exchange and that if an exchange charge is made it will necessitate our collecting checks by whatever other means are available to insure their payment at par. DAY. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PART II. S REPORTS OF FEDERAL RESERVE AGENTS TO FEDERAL RESERVE BOARD. 45525°—21 24 359 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1—BOSTON. FREDERIC H. CURTISS, Chairman and Federal Preserve Agent. INTRODUCTION. The great business activity which marked the last half of the year 1919 continued well into the year 1920, bringing with it a new high level of prices, followed in the late spring by a slowing down in industry and a decline in commodity prices which continued to the end of the year, prices declining from 25 to 30 per cent on an average, leaving accumulations of stocks of all kinds of merchandise in the hands of the merchant and the manufacturer. New England, as well as other parts of the country, had the same experience with these fluctuations in commodity prices as was common with the rest of the world, and the policies of the Federal Reserve Bank of Boston have been dictated by the effort to minimize the financial results of these extreme fluctuations in the business of this district as far as it was possible so to do. The officials of the bank realized the dangerous conditions which were developing early in the year and in January established a general increase in discount rates as a warning to its member banks against further expansion and urged contraction where excessive credit lines had been granted. Since these increases in discount rates did not appear to be effective a second general increase in rates was made on June 4, when the rates on commercial paper were advanced to 7 per cent. At the beginning of the year 1920 the loans of the Federal Reserve Bank at Boston, owing to discounts made in this district, was about at its peak, standing at $289,000,000, of which amount it had been necessary to rediscount some $60,000,000 with other Federal Reserve Banks, largely those in the South and West, while the bank's adjusted reserve then stood at 27 per cent; but, through the cooperation of the heads of some of the large banks in the district, pressure was brought on borrowers in speculative lines of merchandise to reduce their inventories and prepare for a decline in prices. These arguments were not listened to with any degree of willingness in the early part of the year but, as time went on, it became more and more apparent that prices were too high, and probably the business men of the First Federal Reserve District realized as early as those in any other part of the country that a change was coming. The result was that the loans of member banks at the Federal Reserve Bank began to decline, until in August they were reduced to approximately $120,000,000. The situation was greatly helped by the liquidation of loans in the banks secured by Government obligations, many Liberty loan bonds being sold even at the prevailing low prices, and loans against them paid off by those who had borrowed to make subscription for the bonds. 361 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

362 ANNUAL REPORT FEDERAL RESERVE BOARD. At the time the rate of discount on commercial paper was raised in June to 7 per cent, the rate of discount on notes secured by Government bonds was fixed at 6 per cent and on notes secured by certificates of indebtedness at 5J per cent. From that date no change was made in the discount rates during the remainder of the year. During *the latter part of the year, country banks in this district were comparatively small borrowers at the Federal Keserve Bank and the number of borrowing banks was reduced from 267 on January 1, 1920, to slightly over 230 on December 31, 1920. Most of the borrowings of the country banks were made on Government obligations because of the lower rate of discount. The subscriptions of the country banks to certificates of indebtedness during the year were quite small, neither did they buy any great amount of commercial paper. On the other hand, the market for bankers7 acceptances has gradually widened as this form of investment has become better known. The result is that there has been a good market for acceptances during the year among the country banks in this district so that at no time has the Reserve Bank had an undue amount of this class of paper in its portfolio. It is probably true that the local demands of the country banks absorbed most of their resources so that they did not have a large amount for outside investment at any time. On the other hand, the demands of their local customers did not make it necessary for them to borrow excessively at the Federal Reserve Bank. As the year closes, the Federal Reserve Bank has an adjusted reserve of over 60 per cent, after excluding loans of some $18,000,000 to other Federal Reserve Banks, and not only has the Reserve Bank been loaning freely to the other Federal Reserve Banks during the last half of the year, but it has at the same time provided its member banks with practically all the loans that they required. REVIEW OF BANKING CONDITIONS. The member banks in the First Federal Reserve District have gone through the year in a most satisfactory manner, having adjusted their business to meet the changing industrial conditions. There have been no failures among member banks during 1920 and, while a few banks have at times become somewhat overextended in their loans, liquidation of these to proper limitations have been gradually brought about through the help and cooperation of the Federal Reserve Bank. The failure of several of the smaller Boston trust companies in the early fall caused but temporary disturbance to other banking institutions. These trust companies had large savings deposits and handled a character of business peculiar to themselves and, therefore, their closing was little felt by other institutions. The condition of banks outside of Boston has changed but little during the year, as the pressure due to price readjustment has fallen largely on the Boston banks. Country banks have bought but a small amount of commercial paper during the year, although they have been buyers of Government bonds and bankers' acceptances. Concerns, therefore, that have been accustomed in the past to rely on the outside market for loans have been obliged to increase their borrowings with their city banks. A comparison of the returns made by the banks in the district shows a marked decrease during the year Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1 BOSTON. 863 in loans secured by Government obligations held both in the outside banks and Boston banks. On the other hand, both classes of banks show an increase in commercial loans. Demand deposits during the same period haye declined, especially of Boston banks, while time deposits have increased, the increase being largely with outside banks. The country banks have been able to steadily reduce their loans at the Federal Reserve Bank, while the Boston banks, owing to their deposits declining faster than their loans were paid off and to seasonal demands of the district, although showing a satisfactory reduction since their high point early in the year, have increased, on the other hand, from the low point of August and September, and these banks have been fairly constant borrowers during the entire 3^ear at the Federal Reserve feank. STATEMENT OF CONDITION. A comparison of the statement of the condition1 of the Federal Reserve Bank of Boston on December 31, 1920, with that of the same dates in 1919, 1918, and 1917, shows several interesting changes. It will be noted that bills discounted secured by United States war obligations have decreased materially from the preceding two years, and, on the other hand, commercial bills have increased considerably. Gold reserves held by the bank against deposits and by the Federal Reserve Agent against Federal Reserve notes have largely increased, while the gold held with foreign agents has been greatly reduced; whereas in previous years rediscounts were carried with other Federal Reserve Banks on the date of these statements, this year it will be seen that the Reserve Bank is loaning to other Federal Reserve Banks. The surplus account has been increased until it exceeds the subscribed capital, the paid-in capital shown being 50 per cent of the amount subscribed by member banks. The reserve account of member banks has declined, the falling off of deposits of member banks requiring smaller reserves to be carried with the Reserve Bank. The increase during 1920 of Federal Reserve notes in circulation * while not so large as in the previous periods is considerable. FINANCIAL RESULTS OF OPERATIONS. The heavy increase in loans to the member banks in this district and rediscounts for other Federal Reserve Banks, together with increased discount rates, has naturally brought unusually heavy earnings to this bank. On the other hand, expenses have also increased. It might be noted, however, that over one-half of the expenses at the present time is due to cost of increased service to member banks, such as currency shipments, check collections, etc., rather than to direct operating costs.2 The schedule of income and expense does not include disbursements made for account of the Government in connection with the fiscal agency operations and the war savings organization, amounting to $447,000, for which the bank is reimbursed by the Treasury Department. Semiannual dividends were paid June 30, 1920, and December 31, 1920, at the rate of 6 per cent per annum on the stock holdings of member banks, and, after carrying $7,351,799 to surplus account in 1 See Schedule No. 1. 2 See Schedule No. 4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

364 ANNUAL REPORT FEDERAL RESERVE BOARD. accordance with the provisions of the amendment to the Federal Reserve Act approved March 3, 1919, $2,473,499 was paid over to the United States Government as a franchise tax, which, under the provisions of that act, " shall in the discretion of the Secretary be used to supplement gold reserve held against outstanding United States notes, or shall be applied to the reduction of the outstanding bonded indebtedness of the United States under regulations to be prescribed by the Secretary of the Treasury." LOAN AND DISCOUNT OPERATIONS.1 The year 1920 opened with loans, discounts, and investments at $289,000,000, which was approximately the highest peak they had ever reached, while, in order to maintain a reserve above the legal limit, the Federal Reserve Bank of Boston had rediscounted some $60,000,000 of that amount with other Federal Reserve Banks, i. e., bankers7 acceptances sold with this bank's indorsement. Of these $289,000,000, $124,000,000 were loans against United States war obligations, $63,000,000 loans and discounts against commercial paper, $78,000,000 bankers' acceptances, $22,000,000 United States securities owned by the bank. The increase of the discount rates in January brought about a steady reduction in loans against United States war obligations, which was later accentuated by the raising of rates on loans against certificates of indebtedness, and still further accentuated by the general increase in rates of June 4. Loans against United States war obligations were reduced to some $52,000,000 by October, and, while subsequently increasing, the year ended with $68,000,000 of the bank's loan on this type of paper. On the other hand, loans against commercial paper steadily increased from January well into March, embargoes and heavy snows interfering with transportation and delaying the movement of goods. While commercial loans were somewhat reduced later in the year, they increased again, until in June they had reached some $70,000,000. The increase in discount rates by the bank in June had little effect in reducing its loans for several weeks, and then the loans declined at the same time as the usual midsummer contraction, which was somewhat more marked than in 1919. The commercial loans remained fairly steady until early in November, when, as in past years, with seasonable demands these loans began to increase, reaching a high point of $101,000,000 the last of December, and closing the year at $87,000,000. The holdings of bankers' acceptances purchased in the open market declined rapidly from the first of the year, by March 19 being reduced to about $20,000,000, and did not increase to over $35,000,000 at any time during the balance of the year, a high point being reached on May 21. During June and July the bank's holdings of bankers' acceptances steadily declined, being somewhat increased during September and October by purchases in the New York market. On January 1, 1920, 68 per cent of the total loans of this bank were to Boston banks. This percentage increased to 80 per cent in July and reached a point of 85 per cent in November. It should be noted, however, that the member banks in Boston have contributed from 52 to 57 per cent of the total reserve deposits in this bank. i See Schedule No. 3. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1 BOSTON. 365 DISCOUNT RATES. The decided decrease shown in the Government's floating debt between July 1 and the end of the year 1919, the expectation that the offering of Treasury certificates of indebtedness during 1920 would be of diminishing volume, and the overloaned condition of the Federal Reserve Bank of Boston were motives for increasing discount rates, the directors of the bank believing that the time had passed when the needs of the Government could be considered paramount to controlling the general credit expansion that had been under way since the summer of 1919 and was still on the upward swing. While discount rates had been raised somewhat in the preceding November and December, the increases had had practically no effect in checking the expansion which was fast approaching a dangerous point. Discount rates were raised four times during the year 1920. On January 3 the rates on loans secured by Treasury certificates of indebtedness were increased to 4| per cent, which was somewhat higher than the interest rate carried by many of the issues of the certificates then outstanding. On January 23 a general increase in discount rates was made, the increases ranging from li per cent in the case of commercial paper (6 per cent) to f per cent on loans secured by Liberty loan bonds (5J per cent). While the rates on loans secured by United States certificates of indebtedness were not raised at that time, they were increased February 27 to 5 per cent. The rates established on January 23 were effective in reducing loans secured by Government obligations, but were not effective in controlling loans for commercial purposes and these continued to expand, the bank rate of 6 per cent being not only not equal to, but rather below the outside market rate. Loans were expanded in many cases far beyond the limits of safety which the amount of capital invested in industries warranted, especially with increasing cost of inventories. The matter of establishing a graduated discount rate based on member bank loans was discussed from time to time by the directors of the bank, but, as most of the pressure for loans was on the large Boston banks, a pressure emanating from manufacturers and dealers in raw material, it was feared that such a policy might bring about a too drastic curtailment, and it was therefore abandoned. A second general increase in rates was therefore put into effect on June 4, at which time rates on commercial paper were advanced to 7 per cent, the special discount rates for bankers' acceptances withdrawn, and the rates for paper secured by Liberty loan bonds* and Treasury certificates of indebtedness increased to 6 per cent and 5$ per cent, respectively. At the same time the openmarket rates on bankers' acceptances were also raised. These increases of June 4 had the desired effect, and by August the loans of the bank had been reduced to such a point that from then on until the end of the year this bank rediscounted heavily for other Federal Reserve Banks and was thus enabled to assist other sections of the country in financing the abnormal situations that had developed, as these sections had previously assisted New England earlier in the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 ANNUAL REPORT FEDERAL RESERVE BOARD. BANKER'S ACCEPTANCES. The general development of bankers' acceptances in this district during the past year has been very satisfactory. The character of the acceptances originating in this district, as well as those purchased by the Reserve Bank, has conformed more closely to the policy and regulations laid down by the Federal Reserve Board than ever before, and at the same time the general market has broadened. The somewhat artificial support which the Reserve Bank has felt necessary to give to the market during the past year has been largely withdrawn. Brokers report increasing sales of acceptances to country banks, savings banks, insurance companies, and trustees, as well as to individuals and corporations, evidencing the fact that the desirability of acceptances as a short-time prime investment is being more and more recognized. Brokers have been more active in distributing bankers' acceptances than ever before and the Reserve Bank has therefore been called upon to a greater extent to assist these brokers in carrying portfolios upon 15-day repurchase agreements. Early in the year this bank adopted the policy of sending out questionnaires to the acceptors of bills which it had purchased in order to check up the character of the underlying transactions. This questionnaire is not sent out on every bill purchased but at rather rare intervals, or when earmarks are noted about a bill which have raised some question regarding its character. Acceptors have cooperated most satisfactorily in responding to the questionnaires and it is believed that from the standpoint of the bank, brokers and acceptors, the results obtained have been beneficial. On January 23, 1920, when discounts rates were generally increased by the bank, a preferential discount rate of 5 per cent was established on bankers' acceptances. As the openmarket rate was 5f per cent, this policy resulted in acceptances being offered freely for rediscount by member banks and the open market almost ceased to exist, some $15,000,000 of acceptances being held by April 1 under rediscount. The policy of preferential rates was later abandoned and from then until the end of the year the outside market continued to broaden. In June and also in October and November bills were purchased direct from the Federal Reserve Bank of New York, about $31,000,000 in all being thus procured. The policy in buying bills has been changed from time to time; at certain periods unindorsed bills were purchased only when their maturity was not over 30 days and at a later date when such bills had only 20 days to run. In July and August a special rate was maintained on domestic bills of one-eighth less than the current rate on prime bills drawn outside of the country. The volume of acceptances has held up unusually well, especially when the price of commodities is considered. There was outstanding on November 15, 1920, some $88,000,000 of bills accepted by the banks and bankers in the district as compared with $105,000,000 on November 17, 1919. TRADE ACCEPTANCES. The development of the use of trade acceptances—at least the domestic trade acceptances—unlike that of the bankers' acceptances, does not appear to have been entirely satisfactory. That they have been misused there is little question, and for the most part the banks in the district do not feel any more favorably disposed, if as much so to encourage their use than in the past. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1 BOSTON. 367 UNITED STATES SECURITIES. The in vestment holdings of the bank in Government securities, bonds, and short-time obligations show no material change from the previous year. RESERVE POSITION. During the year, the reserve position of the Federal Reserve Bank of Boston has shown a marked improvement both in percentage and actual gold holdings. While the actual reserve against combined note and deposit liability as published on Friday of each week has varied from 40 per cent to 60 per cent, the adjusted reserve, that is the reserve after eliminating the inter-Federal Reserve Bank loans, shows fluctuations from 27 per cent on January 1 to 60 per cent on December 31, with a high point of 72 per cent on October 22. DEPOSITS. Member banks' reserve accounts have fluctuated within a range of about $20,000,000 and have shown no marked tendency to increase as in previous years, although the average has been higher than in 1919 or 1918. The deposits of new member State banks account for some of the increase and also the fact that the policy adopted of higher penalties for deficient reserves has influenced banks to keep their full required reserves, although the general decline in deposits which the member banks have been experiencing during the year has required smaller reserve balances with the Reserve Bank. CURRENCY. While this year the note issue increased steadily as in other years as long as the reserves of the system showed no material improvement, since early fall when that reserve began to improve not only has a marked contraction appeared, but the increase in gold holdings of the bank has provided a much larger gold cover against outstanding notes. The decline in note issues began in September when a very marked recession appeared, which, however, was checked by the sudden demand for currency following the closing of several Boston nonmember trust companies. Federal Reserve notes in circulation on January 1, 1920, were $244,000,000, the note issue reaching in September the high point of $311,000,000, which by the end of the year had receded to $286,000,000. Shipments of Federal Reserve notes have been reported by member banks to Cuba and other Latin American countries, especially during the early months of the year, and there is evidence of pay-roll money having been sent by mill operatives to European countries, especially those of central Europe, CHECK OR TRANSIT DEPARTMENT. With the exception of checks drawn on the Treasurer of the United States, the volume of checks handled by this bank during the year 1920 has largely increased both in volume and amount over previous years, the heaviest increase being in New England checks. The decrease during the year of the number of items and amounts drawn on the Treasurer of the United States is due to the cessation of Government activities in the World War, with its consequent decrease in Government expenditures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

368 ANNUAL KEPORT FEDERAL RESERVE BOARD. While the number of member banks sending checks direct to the Federal Reserve Bank for collection has increased from 111 on December 1, 1916, to 126 on December 1, 1920, as there are 436 member banks in the district, it will be seen that a rather small percentage of the member banks are availing themselves of this service. A large majority of the banks still continue to send checks through their city correspondents, although most of those checks in turn are collected by those correspondents through the Federal Reserve Bank. COLLECTION DEPARTMENT. The collection department, handling time items, notes, drafts, and coupons, has also had a heavy increase in the number of items handled, necessitating in this department an increase of 14 clerks, or a total of 24 for the department during the year. The policy of giving immediate credit for maturing coupons and bankers7 acceptances has materially increased the volume of such items handled. This department does not collect coupons on Government obligations, which are handled in the fiscal agency department. Member banks sending time items for collection to this department have increased from 82 on December 31, 1919, to 131 on December 31, 1920. RELATION TO BANKS AND THE PUBLIC. Satisfactory progress has been made during the past year toward developing a closer relationship with the officials of both member banks and nonmember State banks, and with the public at large, and a better understanding of the service that the Federal Reserve Bank of Boston can furnish in assisting in the safeguarding and development of industrial, commercial and agricultural and financial activities of the New England district. The officials of the Federal Reserve Bank have made calls from time to time upon member banks, explaining in detail matters pertaining to operating service which this bank can offer its members, and this has led to increased use of the bank's facilities for currency needs, collection of checks and time items, and of other services which the bank can furnish. During the year, in connection with the monthly review of conditions in this district, a department has been opened whose duties are confined exclusively to the analysis and investigation of industrial, commercial, and agricultural statistics. This department, although confining its work to industrial investigation, is working in the closest cooperation with the department investigating financial statistics. Through the work of this department and through conferences which the bank officials have had with representatives of the important industrial activities in the district, the bank has been able to keep in the closest touch with the needs and changes which the industrial situation existing during the past year has brought on the local credit situation. The bank's officials have from time to time addressed banking and trade organizations on subjects pertaining to its operation. Three State banks have been admitted to membership in the Reserve System, and also four national banks that had been newly organized, while three national banks surrendered their charters to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1 BOSTON. 369 become State banks. Fiduciary powers have been granted to a number of national banks during the year, as well as privileges to accept dollar exchange. CREDIT DEPARTMENT. The unusual changes which the industrial situation has undergone during the year 1920 placed a heavy responsibility on the credit department of the bank, necessitating an enlargement of its force. The credit standing of commercial notes offered for rediscount has been followed very closely, all notes offered for rediscount having been approved by a committee composed of the assistant cashier in charge of the discount department, the chief examiner, and the manager of the credit department, and doubtful credits in turn referred by this committee to the senior officers for final adjudication. CERTIFICATES OF INDEBTEDNESS. The fiscal operations of the Government during 1920 have been confined to short-time loan certificates, or certificates issued in anticipation of income or excess profits taxes. These certificates issued, though less in volume than in 1919, both owing to the interest rates which they bore and largely to the general credit situation existing, did not find a ready market in this district during the first half of the year, and the quotas allotted to the bank were not filled. GOVERNMENT SAVINGS SECURITIES. The savings organization has become more akin to other fiscal agency operations in the bank during the year, and as the year ends arrangements have been made to house tliis organization, which has been reduced from 143 employees on December 31, 1919, to 19 on December 31, 1920, in the rooms formerly occupied by the Subtreasury, a large portion of which are now used by the currency department of the bank. CONCLUSION. The last 12 months have brought new problems to the Reserve Bank. While during the past few years Government financing has played a most important part, during 1920 the industrial situation has been the controlling factor in the bank's operations, the Treasury borrowings becoming of less and less importance in the general credit situation; especially during the last half of the year Treasury certificates were offered for subscription at such rates that made them attractive to the investor—thus keeping them out of commercial banks7 portfolios. The proceeds of such subscriptions were left on deposit with subscribing banks for such short periods as to have but little influence on the credit situation. The apparent industrial prosperity which marked the early months of the year while probably artificial, brought new high price records for commodities in various lines of production, founded as it was to a large extent on a foreign trade, financed by bank credits which could not increase or continue indefinitely. These credits had reached such proportions, falling as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 ANNUAL REPORT FEDERAL RESERVE BOARD. they did on the banks in the large centers, that the limit of such credit expansion was reached and then domestic demands being insufficient to take care of production, prices generally began to fall. From early summer to the end of the year this price deflation continued and, as the year ends, has been felt in all lines of industry in the district. Many commodities, however, are selling at below cost of production. Numerous industries are left, however, wdth large inventories of raw material and manufactured goods, and the liquidation in these inventories will necessarily be slow, and therefore money rates, especially in the large centers, while easier, will probably continue fairly high throughout the year. SCHEDULE 1.—Statement of resources and liabilities. [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, Dec. 31, 1920. 1919. 1918. 1917. RESOURCES. Gold reserves: Coin and certificates.. 11, 800 7,959 3,317 18,691 Gold settlement fund. 40,116 34, 351 37, 293 16, 977 With foreign agencies. 241 9, 586 408 3,675 Total held by bank 52, 157 51, 896 41,018 39, 343 W Re i d th e m F p ed ti e o r n a l f u R n e d serve agent. 13 IS 4, , 7 7 9 4 6 7 2 7 8 3 , , 3 51 4 1 2 59 7;, 7 8 3 1 3 2 40 2 , , 0 8 0 9 0 7 Total gold reserve 205, 700 151, 749 108, 563 82, 240 Legal tender notes, silver, etc. 11, 816 4,037 2,288 3,574 Total cash reserve.. 217, 516 155, 786 110, 851 85, 814 Bills discounted: Secured by Government war obligations 78, 225 124, 529 120. 515 43, 898 All other 95,143 63, 510 13' 060 21, 985 Bills bought in open market 20, 678 18, 649 15, 084 9,037 Total bills on hand 194, 046 206, 688 148, 659 74,920 United States Government bonds 544 539 538 610 United States certificates of indebtedness. 21, 519 21, 805 7, 416 2,194 Total earning assets. 216,109 229, 032 150,613 77, 724 Bank premises 2,700 1,103 800 Uncollected items and other deductions from gross deposits 57, 623 85, 424 68, 493 18, 787 5 per cent redemption fund, Federal Reserve Bank notes 1,072 1,072 321 All other resources 468 496 1,183 """ "284 Total resources I 495,488 472, 913 338, 261 182,609 LIABILITIES. Capital paid in ! 7, 718 7,107 6,692 5,858 Surplus ! 15, 711 8, 359 1,536 75 Government deposits | 4, 561 I7l23 10, 469 Due to members, reserve account I 114, 670 117, 294 101, 8G6 82,842 Deferred availability items 41, 762 67,194 47, 437 17,649 Other deposits ; 835 5,843 411 23 i Total gross deposits 161, 828 191, 454 160, 153 102, 933 Federal Reserve notes in actual circulation 288, 780 244, 093 160, 726 73,199 Federal Reserve Bank notes, net liability 20, 353 20, 912 6,382 Ai: other liabilities 1,098 2,772 Total liabilities.. 495, 488 472, 913 338,261 | 182, < Bills acquired from other Federal Reserve Banks 18. 075 Liability for rediscounts with other Federal Reserve Banks . 60,121 48, 962 44, 477 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1 BOSTON. 371 FEDERALRESERVE BANK OF BOSTON.11 MOVEMENT OF EARNING ASSETS i DURING 1920. PS PS so Ak so zs 2S 0 ^^ ^^ 0 UMTED STATES SECURITIES PS PS so SO 2S 2S 0 0 PURCHASED BILLS MELD 100 U\/- PERCEHTA6EOF WAR PAPER TO TOTAL DISCOUHTS FVRBARKS MPISTRICI 2S0 225 DISCOUNTED BILLS (SEE NOTE BELOW) BOO TOTAL EARNING ASSETS JAN. FEB. P>1AR. APR. MAY JUNt JULY AU6.SEPT\OCT\ISQV\DEC. \ (a) Paper secured by Government war obligations discounted for banks in district. (b) Total paper discounted for banks in district. (c) Total discounted paper held. Space between lines (b; and (c) represents paper discounted for other Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—Movement of principal asset and liability items during the calendar year 1920, CO [Amounts in thousands of dolla Discounted bills. Purchased bills. | Reserve percentage. Discounted for member banks in this district. Date. e a T a s r o s n t e i a t n s l, g . I ; ! T h o el t d al . f c R F o B o r e e D a u d s o n n i e e s t k t r - h r e v s a e d . e l r A. Sec b B u y . red I C. m i c n h P a o a r u s k p r e - e e d n t. R B S F o o e e a t l s d n d h e e k e r r t s r v o a . e l 1 T he o l t d a . l U s S e t n t i c a e i u t t s e r e . i s d - re T s c e o a r s t v a h e l s. dep N o e s t its. n R c F o i t e e r i t d s c o e e u e s n r l r . v a i a n e - l Actual. ju A st d e - d.2 Govern- Per cent w Total. ment (B-5-A). war obli- o gations. H Jan. 2 237,434 184,656 184,656 123,914 67.1 77,483 58,849 18,634 34,144 157,502 116,845 243,368 43.7 27.4 9 220,358 159,760 159,760 105,100 65.8 69,237 30,953 38,284 22,314 156,291 108,150 233,500 45.7 36.7 16 217,622 158,509 156,509 108,935 69.6 61,864 27,364 34,500 26,613 164,169 118,800 228,164 47.3 39.4 23 206,674 148,820 148,820 105,562 70.9 59,243 23,819 35,424 22,430 171,466 112,397 230,999 49.9 43.0 30 234,964 161,018 161,018 112,933 70.1 52,532 1,021 51,511 22,435 149,326 115,332 234,991 42.6 42.3 Feb. 6 240,141 168,883 168,883 116,703 69.1 47,122 1,755 <8,877 22,381 142,366 105,903 242,256 40.9 41.4 13 235,681 188,531 188,531 106,651 56.6 39,997 17,013 22,984 21,166 147,689 99,274 249,453 42.4 37.5 20 216,538 177,998 177,998 100,581 56.5 33,430 17,013 16,417 22,123 175,843 103,833 254,247 49.1 44.4 W 27.- . 218,642 180,424 180,424 104,470 57.9 28,002 11,923 16,079 22,139 188,717 113,970 259, 702 50.5 47.3 in Mar. 5 226,167 188,339 20,000 168,339 97,509 57.9 25,648 10,185 15,463 22,365 181,686 115,059 260,275 48.4 51.0 12 - - 232,239 192,815 30,000 162,815 98,917 60.8 24,501 7,439 17,062 22,362 170,953 110,9,12 260,873 46.0 52.0 19 211,311 173,242 14,995 158,247 88,339 55.8 20,470 4,542 15,928 22,141 198,238 114,112 265,045 52.3 55.0 26 235,795 195,865 23,399 172,466 90,746 52.6 20,774 2,985 17,789 22,141 168,044 111,944 261,697 45.0 50.4 Apr. 2 235,146 185,417 11,463 173,954 85,811 49.3 19,854 1,325 18,529 31,200 173,745 107,434 270,466 46.0 48.7 9 213,817 163,760 18,000 145,760 77,695 53.3 21,672 820 20,852 29,205 192,008 107,808 267, 284 51.2 55.8 16 223,110 176,260 35,920 140,340 83,017 59.2 21,934 373 2$,561 22,289 186,796 113,173 266,020 49.2 58.6 23 210,415 160,786 20,260 140,526 75,866 54.0 27,400 27,400 22,229 201,436 113,658 267,634 52.8 58.1 30 .. 207,798 157,085 22,126 134,959 82,885 61.4 28,583 28,583 22,130 199,847 110,219 266,568 53.1 58.9 May 7 220,828 166,056 35,980 130,076 79,645 61.2 32,652 32,652 22,120 185,766 105,529 269, 740 49.5 59.1 14 . . 233,927 178,740 29,290 149,450 88,9^5 59.5 33,099 23,099 22,088 185,633 118,623 269 531 47.8 55.4 21 227,103 169,814 21,503 148,311 91,753 61,9 35,143 35,143 22,146 191,814 115,369 271J516 49.6 55.1 28 226,690 169,830 20,366 149,464 94,758 63.4 34,746 34,746 22,114 195,591 116,153 273,944 50.1 55. 4 June 4 222,934 168,366 17,402 150,964 88,498 58.6 32,253 32,253 22,315 20.1,772 113,699 278,353 51.5 55.1 11 225,126 170,318 27,117 143,201 83, 994 58.7 32,478 32,478 22,330 194,334 108,912 277,997 50.2 57.2 18 212,436 159,868 20,533 139,335 76,778 55.1 30,241 30,241 22,327 199,568 100,284 279,083 52.6 58.0 25 201,896 146,216 12,128 134,088 76,196 56.8 28,181 !+ 5,002 33,183 22,197 222,362 111,189 280,617 56.8 61.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 2. 238,542 178,215 34,461 143,754 78,349 54.5 33,132 + 4>918 38,050 22,277 186,876 108,349 284,496 47.6 57.6 9. 224,338 166,168 35,994 130,174 67,058 51.5 30,992 + 4,918 35,910 22,260 200,263 104, 738 287,332 51.1 61.5 16. 210,624 152,643 34,280 118,363 58,872 49.7 28,820 + 4,918 33,738 24,243 207, 898 102,080 28J, 369 53.8 63.9 23. 203,059 144,728 36,495 108,233 58,100 53.7 27,270 + 4351 31,621 26,710 222,535 110,536 282,284 56.7 67.1 30, 205', 701 149,581 44,923 104,658 61, 766 59.0 25,456 + 3,445 28,901 27,219 223,849 111,636 284,842 56.5 68.7 Aug. 6. 210,773 163,661 59,514 104,147 62,139 59.7 22,491 -f 2518 25,009 22,103 221,145 108, 497 289,872 55.5 71.1 13. 213,637 166,754 60,429 106,325 61,937 58.2 18,352 + 1444 19,796 27,087 223,008 110,315 292,189 55.4 70.2 20 230,185 188,306 67,916 120,390 70,086 58.2 19,734 19,734 22,145 211,771 112,263 294,550 52.1 68.5 27 227, 731 185,546 66,911 118,635 66,905 56. 4 20,116 20,116 22,069 216,828 112,544 296,131 53.1 69.4 Sept. 3, 257, 769 210,357 97,014 113,343 61,165 54.0 25,383 25,383 22,029 190,656 108,541 303,206 46.3 69.9 10 266,945 187,711 72,812 114,899 62,404 54.3 25,502 25,502 53,732 185,804 109,581 307,079 44.6 62.1 17 206,853 153,627 45,308 108,319 60,699 56.0 31,066 31,066 22,160 221,616 85,410 305, 693 56.7 68.2 24 236,470 183,331 60,655 122,676 61,743 50.3 30,780 30,780 22,359 210,203 111,001 298,249 51.4 66.2 Oct. 1 236,388 184,212 52,641 131,571 59,037 44.9 30,038 30,038 22,138 221,998 111,188 309, 586 52.8 65.3 8 234,523 182,325 52,450 129,875 60,970 46.9 30,045 30,045 22,153 223,048 110,739 308,936 53.1 65.6 15 237,923 155,288 43,694 111,594 47.253 42.3 34,494 + 15000 49,494 33,141 228,072 119,622 308,155 53.3 67.0 22 240,195 174,079 72,926 101,153 51,464 50.9 29,931 + 12970 42,901 23,215 211,017 110,814 301,833 51.1 72.0 29 245,182 191,117 81,199 109,918 53,341 48.5 28,788 + 3197 31,985 22,080 203,175 113,336 296,168 49.6 70.2 Nov. 1 5 2 2 2 2 3 0 5 , , 0 6 5 5 5 3 1 18 7 3 0 , , 1 7 5 1 7 9 5 5 1 5 , , 3 4 8 1 9 4 1 1 1 2 9 7 , , 3 74 3 3 0 5 6 8 2 . , 2 3 5 7 4 5 4 4 8 8 . . 8 8 2 2 7 3 , , 2 2 9 4 4 7 + 7,000 2 3 7 0 , , 2 2 9 4 4 7 2 2 2 2 , , 0 2 4 4 2 9 2 2 2 0 9 4 , , 5 0 1 4 8 8 1 1 1 1 6 0 , , 3 3 3 6 1 3 2 2 9 8 3 9 , , 7 04 3 1 5 5 5 1 6 . . 1 0 6 6 8 6 . . 5 7 Dec. 2 1 1 1 2 3 3 6 9 0 7 3 0 2 2 2 2 2 2 2 1 2 2 3 3 2 3 0 0 0 1 1 3 8 , , , , , , , 9 3 4 0 2 8 8 1 2 1 9 7 5 0 1 4 4 8 5 6 2 1 1 1 1 1 1 1 6 7 6 7 5 7 8 7 2 5 2 8 8 1 , , , , , , , 9 1 2 5 5 2 9 3 6 9 1 4 2 2 1 5 6 4 3 8 8 2 3 2 1 1 1 1 7 5 4 7 5 9 6 , , , , , , , 6 2 7 7 9 2 5 0 1 9 4 2 7 9 4 7 6 9 6 5 8 1 1 1 1 1 1 1 4 3 4 4 4 6 6 7 2 3 4 7 1 2 , , , , , , , 3 2 9 5 9 0 4 2 1 4 4 6 0 3 7 6 8 7 8 2 2 6 5 6 6 6 6 6 5 9 8 7 6 7 8 , , , , , , , 2 3 9 0 9 6 7 4 7 9 9 7 1 4 1 1 4 7 6 8 1 4 4 4 4 4 4 4 6 5 4 7 4 2 2 . . . . . . . 1 5 8 0 4 4 8 2 2 2 2 1 1 1 2 1 0 2 9 9 9 , , , , , , , 3 8 8 6 2 2 5 9 9 5 1 8 2 3 1 9 2 8 2 9 2 + -f 7, 4 0 3 17 7 2 2 2 2 1 1 1 1 3 9 0 9 9 9 , , , , , , , 3 0 8 8 2 2 5 9 5 6 9 8 2 3 1 5 9 9 2 9 2 3 2 3 4 4 2 2 3 4 3 5 5 2 2 , , , , , , , 6 8 1 6 1 2 1 1 7 7 1 6 4 1 4 8 5 5 9 9 8 2 2 2 2 1 2 2 0 1 1 0 1 9 1 4 9 0 4 4 8 9 , , , , , , , 1 4 5 5 3 8 1 1 9 2 5 6 8 5 3 0 0 5 2 0 8 1 1 1 1 1 0 0 8 0 0 9 0 5 6 5 8 6 9 4 , , , , , , , 5 8 8 6 8 0 7 1 5 0 2 9 1 9 3 3 5 9 3 5 4 2 2 2 2 2 2 2 8 9 9 8 9 9 9 0 8 0 9 3 5 1 , , , , , , , 2 6 1 1 0 1 1 5 9 3 1 6 9 4 1 6 4 6 7 6 0 5 5 5 5 5 5 5 1 0 1 5 5 4 5 . . . . . . . 6 1 6 8 0 4 3 6 6 5 5 5 5 5 2 1 6 6 9 9 9 . . . . . . . 4 9 3 4 6 3 5 o 1 Plus sign indicates net amounts bought from other Federal Reserve Banks. 2 Adjusted percentages are calculated after increasing or reducing reserves held by the amount of accommodation extended to or received from other Federal Reserve Banks. W O Oo oo Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

374 ANNUAL REPORT FEDERAL RESERVE BOARD. I FEDERALRESEWEBAMOFBOSTOH NETDEPOSITLIABILITY, I F.R.NOTE CIRCULATION, CASHRESERVtS.Ali0RE6EnYEMTI0S.l920. 90 90 80 SO 70 70 **\ 60 60 SO SO / A 40 40 V 30 / 30 / 20 20 10 to O RESERVE FERCENTA6ES. ACTUAL *A\ADJUSTEP\» 5SEE NOTE3EL0W. ISO DEPOSITAtiDER. NOTEL1ABILITES;'L, AtiDTOTALHESERVES;C: JAN. FEB. MAR. APR. MAT JUHE JULY AUG. SEPT OCT. nOV. DEC. Jldfasted jtercenfagesare ctdculajted, after wcreasirujor reducing reserves held, - ftythe>aMaajttafaoco?rwd(itwrv tedd t i d / ^ J d U ^ ^^ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.— Volume of paper discounted and bought. [In thousands of dollars.] 8! 8 Discounted paper. Purchased paper. Total discounted and purchased paper. Month. Secured Total. w e b r y a n r m G o o e b n v li t - - B a a a c n n c c k e e p e s r t . - s' a a T c n r c c a e e d p s e t . - ot A h l e l r. Total. B a a a c n n c c k e e e p s r t . - s' - c D ha e o x n l - l g a e r . a a T c n r c c a e e d p s e t . - 1920 1919 1918 1917 gations. January... 363,305 343,955 1,554 583 17 213 18 686 18 686 381 991 395,343 32,521 4,237 February . 436 605 374 374 9 874 256 52 101 18 279 18 279 454 884 376 082 72 551 9 195 March. 461, 412 381,400 7 312 1 704 70*996 25 547 25*497 50 486 959 344,636 41,320 10,257 April 346 039 304 881 1 032 288 39 838 29 156 29 149 7 375 195 522 481 39 433 11 195 May. 421,130 372 969 1 757 383 46* 021 29*301 29*201 100 450 431 462, 431 66 613 21,520 June. 416,685 349,388 490 415 66 392 23,961 23 956 5 440,646 394,712 61,439 54,761 July. 286,484 250 501 146 35 837 22 569 22 569 309 053 431,033 155 685 45,834 August.. 416, 777 343,463 10 193 73 111 24,852 24,752 ioo 441,629 287,944 142,881 33,929 September... . . . . .. 385,188 304, 671 23 170 80,324 31,990 31,690 300 417,178 334,405 249,026 42,644 October 337,362 270,305 155 66,902 29,069 28,719 350 366,431 429,898 333,422 17,426 November. 456,160 350,984 174 105,002 27,200 26,781 419 483,360 490,900 372,350 72,374 December. • 549,407 427,139 77 195 121,996 23,834 23,803 31 573,241 566,317 387,202 119,076 Total: w 1920... 4,876,554 4,074,030 22,129 4,662 775 733 304,444 303,082 1,362 5,180,998 o 1919. 4,675.398 4,486,154 4,986 10,820 173,438 360,784 356,109 525 4,150 5,036,182 1918 . 1,760,285 1,550,311 530 10 287 199,157 194,158 189,967 2,102 2,089 1.954,443 1917 350,920 25,095 6,115 319,710 i 91,528 88,119 3,409 i 442,448 o ^Includes $5,046,527 of acceptances purchased from the Federal Reserve Bank of New York. CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 ANNUAL REPORT FEDERAL RESERVE BOARD. SCHEDULE 4.—Earnings and expenses. 1917 EARNINGS. Discounted bills $10,031,301 $6,003,252 $3,068,028 $571,117 Purchased bills 1,613,012 1,077,691 931, 701 502, 397 United States securities 554,172 369, 457 107, 719 94, 785 Municipal warrants 5,203 Transfers—net earnings 108 Deficient reserve penalties f including interest). 41, 783 27, 836 18, 426 6,105 Net service charges received 59, 695 Profits realized on United States securities 12, 213 41, 821 I,02 Sundry profits 20, 772 19, 347 247, 805 7,191 Total earnings.. 12,273,253 7,497, 583 4,475,195 1,198, 008 Expenses of operation: Assessments account expenses Federal Reserve B oard 52,584 45,619 32,190 21,226 Federal advisory council (fees and travelling expenses) 500 475 445 Governors' conferences (including travelling expen ses) 244 70 539 Federal Reserve agents' conferences (including travelling expenses) 400 109 199 Salaries: Bank officers 116,600 105,097 75, 975 43, 550 Clerical staff 781, 904 606,345 264, 942 49,039 A Sp ll e o ci t a h l e o r fficers and watchmen 7,207 1 12 2 , , 1 2 1 7 1 8 9,115 604 Directors' fees 4,940 3,550 4,150 4,060 Per diem allowance 2,057 1,140 1,220 1,010 Traveling expenses 2,532 2,661 938 711 .Officers' and clerks' traveling expenses 9,046 8,708 4, 337 921 Legalfees 3,723 3,817 2,600 2,400 Rent 63, 844 58, 367 33, 328 15, 246 Taxes and fire insurance 1,180 3,554 25, 035 430 Telephone 12, 292 11, 855 6,759 4,452 Telegraph 10, 315 7,958 3,970 565 Postage 66, 915 78, 621 52, 954 5,507 Expressage 951 3,416 25, 070 3,036 Insurance and premiums on bonds 23, 007 19, 104 10, 899 2,647 Light, heat, and power 14, 443 16, 771 5, 116 1,651 Printing and stationery 63, 667 41, 478 39, 348 8,004 Repairs and alterations 288 16, 722 2,687 1,289 Cost of currency shipments 120, 024 78, 824 Allother 82, 115 89, 735 26, 191 Total expenses of operation. 1,445, 719 1, 220, 964 691, 112 193, 531 Cost of Federal Reserve currency 345,151 285, 917 167, 828 18, 954 Miscellaneous charges, account note issues 112,162 31, 774 7,558 Tax on Federal Reserve bank notes 82,000 89, 422 Furniture and equipment 24, 585 43, 748 41, 622 14, 974 Bank premises 28, 673 61, 895 Disbursements of transit department in excess of net service charges received 8,256 Total current expenses 2,038, 290 1,671, 825 970, 015 285, 715 Current net earnings 10, 234, 963 5, 825, 758 3, 505,180 912, 293 PROFIT AND LOSS ACCOUNT. Earnings 12,273, 253 7, 497, 583 4,475,195 1,198,008 Current expenses.. 2,038, 290 1,671, 825 970, 015 285, 715 Current net earnings 10, 234, 963 5, 825, 758 3, 505,180 912, 293 Additions to current net earnings... 67,914 Profit and loss account, Jan. 1,1917. "ii,'597 Total 10, 302, 877 5,825,758 3,505,180 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

377 DISTRICT NO. 1 BOSTON. SCHEDULE 4.—Earnings and expenses—Continued. 1920 1919 1918 1917 PROFIT AND LOSS ACCOUNT—continued. Deductions from current net earnings account: Bank premises $200 000 Reserve for depreciation United States bonds $28,162 $138,267 Assessment account expenses Federal Reserve Board, January-June $38, 666 Special reserves 37 All other 2,114 9,711 33, 667 Total deductions 30,313 48, 377 200, 000 171, 934 Net earnings available for dividends, surplus and franchise tax Dec. 31 10,272, 564 5, 777, 381 3, 305,180 751,956 Dividends paid 447, 266 414, 447 384,180 601, 756 Transferred to surplus fund 7, 351, 799 5,362, 934 12,921,000 75,100 Franchise tax paid United States Government 2,473, 499 75,100 1 Includes $1,460,500 reserve for Government franchise tax transferred to surplus in 1919. SCHEDULE 5.—Currency receipts from and shipments to member and nonmember banks. [In thousands of dollars.] Receipts. Shipments. Total receipts. Total shipments. Month. From F n r o o n m - To To nonmember member member member 1919 banks. banks. banks. banks. January 49,474 5,138 38,446 50 54,612 47,000 38, 496 17,173 February 28,220 3,303 50, 289 34 31, 523 28, 280 50,323 26,440 March 42, 745 4,752 50, 685 88 47, 497 33, 842 50,773 26,579 April 48, 608 4,328 44, 761 51 52, 936 40, 293 44, 812 27,674 May 48, 213 4,366 55, 026 43 52, 579 47, 230 55, 069 17,761 June 59, 781 5,135 63, 562 21 64, 916 41,987 63, 583 31,536 July 59, 941 4,280 60,134 15 64, 221 47, 230 60,149 37,408 August 56, 716 4,372 73, 477 32 61, 088 38, 688 73,509 38,885 September... 59, 931 4,199 74, 081 9 64,130 39, 525 74,090 37,980 October 63, 021 5,009 55, 420 268 68, 030 53,832 55,688 41,164 November... 58,251 4,420 53, 603 1,927 62, 671 36, 890 55,530 39,076 December 5,895 64,397 2,205 74, 776 51,056 66,602 60,664 Totals: 1920 643,782 55,197 683,881 4,743 18,979 688,624 1919 462,153 43,700 400,319 2,022 505,853 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

378 ANNUAL REPORT FEDERAL RESERVE BOARD. SCHEDULE 6.—Operations of check clearing and collection department. [Amounts in thousands of dollars.] Items drawn on banks in own district. Items drawn on Items forwarded to Month. R L e o s c e a r t v e e d B in a F nk ed c e i r t a y l . Lo B F c e a a d n te e k d r a c l i o ty R u . e t s s e i r d v e e U T n re it a ed su S r t e a r t es o . f t s o h e t e h rv i e r e r b F r B a e a n d n c e k h ra s e l s a . R n e d - Number. Amount. Number. Amount Number. Amount. Number. Amount. January 673,356 751,768 2,709,713 433,119 108,873 28,018 76,908 83,166 February.. 582,832 565,948 2,093,869 329,736 58,991 19,201 66,470 80,024 March 746,993 666,454 2,757,018 445,180 123,906 29,747 83,972 95,567 April 667, 569 702,255 2,702,210 457,778 119,238 39,708 86,164 88,207 May 605, 543 690,999 2,713,862 460,120 112,471 46,614 91,851 85,825 June 662, 555 732,338 2,932,681 506,979 162,562 27,703 111, 275 92,541 July 684,268 712, 995 2,893,738 483,756 110,882 20,149 111,272 81,073 August 630,619 2,787,614 435,699 97,812 22,548 118,191 75,724 September. 598,592 650, 886 2,707,023 463,545 133,707 16,679 125,060 82,685 October 632, 226 674, 509 2,949,254 460,960 130,059 43,658 127,335 73,314 November. 623,728 625,662 2,889,657 442,702 127,446 17,778 144,208 61,162 December.. 677,612 650, 774 3,121,563 442,873 170,506 34,195 160,514 64,406 Total: 1920. 7,803,660 8,055,207 33,258,202 5,362,447 1,456,453 I 345,998 1,303,220 963,694 1919. 5,941,776 7,295,405 27,427,592 4,109,154 2,203,930 I 724,045 660,973 926,199 1918. 5,588,238 (2) 2,368,556 (i) '1,167,427 (0 1,327,187 1917. 2,947,723 1,235,317 (i) I 246,197 1,180,770 0) (X) Totals. Month. 1919 1918 1917 Number. Amount. Number. Amount. Amount. January 3,568,850 1,296,071 2,755,193 1,064,703 631,838 278,944 February.. 2,802,162 994,909 2,331,529 799,943 531,653 272,065 March 3,711, 889 1,236,948 2,921,165 982, 732 641,837 344,830 April 3,575,181 1,287,948 2,893,473 956,660 732,118 397,015 May 3,523, 727 1,283, 558 2,941,817 990,980 784,820 420, 236 June 3,869,073 1,359,561 3,085, 442 1, 111, 732 997,653 512,181 July 3,800,160 1,297,973 3,206,894 1,141, 575 929,220 548,885 August 3,652, 003 1,164, 590 2,904,295 1,140,213 952, 781 537, 417 September. 3,564, 382 1,213, 795 2,989,561 1,148,014 868, 016 492,682 October 3,838,874 1,252, 441 3,406,298 1,179,101 1,160, 082 551, 266 November. 3,785,039 1,147,304 3,159,297 1,141,966 1,118, 539 630,649 December.. 4,130,195 1,192,248 3,639,307 1,397,184 1,102,851 623,837 Total: 1920.. 43,821,535 14,727,346 1919.. 36,234,271 13,054,803 1918.. 10,451,408 : 1917., 5,610,007 1 Figures not available. 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. REVIEW OF BUSINESS AND CREDIT CONDITIONS IN 1920. The operations of the Federal Reserve Bank of New York during 1920 were carried on under conditions so exceptional that a review of credit conditions which prevailed throughout the year will greatly facilitate an understanding of the matters dealt with in this report. CREDIT. Coincident with the rapid increase of prices during the 12 months ending February, 1920, the volume of bank loans also increased very rapidly. Thereafter loans increased very much more slowly, and toward the end of the year they actually declined, but throughout 1920 bank loans neither rose nor fell as fast as did commodity prices. It was in New York City that bank loans showed their first tendency to fall, following the decline in stock exchange values which occurred in the autumn of 1919. Loans of New York City banks reached their maximum on October 10, 1919, almost precisely a year before the loans of the banks in other parts of the country reached their maximum. During 1920 New York City bank loans declined $320,000,000, whereas the bank loans of the 750 member banks in other parts of the country which report weekly to the Federal Reserve Board increased about $350,000,000. New York City bank deposits declined $470,000,000 in 1920 and at its close were down $505,000,000 from their high point reached September 19, 1919. But while bank loans in this Federal Reserve district were less at the close than at the beginning of the year, they fluctuated widely meantime, in response to the unusual demands which were often made on those New York City banks which do a nation-wide business. Not only did these banks have to take care of the requirements of their local customers, but any additional credit pressure arising elsewhere in the country was immediately reflected in their loans. Besides lending large sums to their mercantile, manufacturing, and other customers in all parts of the country, the amounts which they were called upon to lend to out-of-town banks were the largest on record, even greater than they were before the Federal Reserve System was established. Nothing will better illustrate the ebb and flow of credit in this district and of the heavy strain to which the New York City banks and the Federal Reserve Bank of New York were at times subjected than the following series of transactions occurring during the last three months of 1920, which are typical of the movements in credit during each of the three preceding quarterly periods culminating on the 379 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

380 ANNUAL REPORT FEDERAL RESERVE BOARD. 15th day of March, June, and September, with the income tax and excess profits tax payments, the maturity of large issues of certificates and the sale of fresh issues of certificates. 1. The deposits of the principal banks in New York City decreased $470,000,000 from October 14 to December 6, on account of Government and commercial withdrawals. 2. These withdrawals caused a steady drain of gold from the Federal Reserve Bank of New York to other Federal Reserve Banks. For the three months ended December 17, the loss of gold aggregated $337,000,000. 3. This adverse flow of funds was substantially offset b^ Government transfers to New York, by the sale of certificates of indebtedness by New York banks to other Federal Reserve Banks and by rediscount operations between Federal Reserve Banks. 4. These rediscount operations comprised the following: On September 29, other Federal Reserve Banks owed the Federal Reserve Bank of New York $19,000,000. By October 6 repayment of these loans was completed. On October 29 the Federal Reserve Bank of New York owed other Federal Reserve Banks $48,000,000. By December 15 repayment of these loans was completed. Between December 8 and 15 the deposits of the principal New York banks rose $407,000,000 in connection with the following transactions : 1. Certificates of indebtedness were redeemed and paid in this district in the amount of $344,000,000, which was $124,000,000 more than the taxes paid. 2. This excess of redemptions over taxes on December 15 necessitated as usual a loan by this bank to the Government. The amount, $74,000,000, was gradually repaid and was extinguished on December 28. 3. The banks of the district on December 15 increased their deposits $212,000,000, when they paid for their subscriptions to the new issues of certificates by crediting that amount on their books to the account of the Government. In connection with the foregoing transactions centering around the December 15 tax payment date. 1. The principal banks of New York City reduced their borrowings at the Federal Reserve Bank between December 8 and 16 by $187,000,000* 2. As tax checks were collected and as the banks sold certificates of indebtedness to their customers, deposits began to decline, and by December 28 had fallen off $174,000,000. 3. Simultaneously the banks began to increase their borrowings at the Federal Reserve Bank, and by December 28 such borrowings had risen $138,000,000. This period of three months, involving such heavy movements of funds, came at a time of the year when the demands for credit are usually at their highest and coincided with the most drastic declines ever experienced in commodity prices and with great business uncertainties and discouragement. Such a combination of events would almost certainly have resulted in disordered credit conditions had there not been a countrywide organization adjusted not only to permit the free flow of funds where credit requirements summoned them, but also to set in motion a counterflow of funds, thus maintaining Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2 NEW YORK. 381 the equilibrium of the credit structure and assuring at all times an adequate supply of funds at steady rates to meet the needs of borrowers. Thus complete credit elasticity was maintained throughout the year. The knowledge by the banks that an organization was functioning which could maintain credit equilibrium and elasticity and which with their cooperation was gradually bringing credit under ; control, enabled them to face with confidence what proved to be one of the most difficult and trying years in our financial history. RATES AND THE MONEY MARKET. The higher interest rates which prevailed throughout 1920 were a result of the increasing credit demands which resulted in the rapid increase in bank loans in the latter part of 1919 and the early months of 1920, and the correspondingly rapid decrease in the reserve ratio of the Federal Reserve System. They were also probably influenced by the progressive increases of discount rates which the Federal Reserve Banks inaugurated in November, 1919, in order to bring the unprecedented expansion of credit under control, and in order that the official discount rates might reflect more correctly existing open-market rates. For by January 23, 1920, when the Reserve Bank rate for commercial paper was advanced to 6 per cent, the open-market rate for commercial paper had already been 6 per cent for several weeks. On June 1, when the Reserve Bank rate was advanced to 7 per cent, commercial paper had been selling for a fortnight at 7-J- per cent and for a month before at 7 per cent. The Federal Reserve Bank in its circular announcing the increased rates effective June 1 stated that the action had been taken "in order that bankers, their customers, and the public generally may find in the discount rates of this bank a reflection of existing credit conditions.7' Shortly after June 1 the open-market rate for commercial paper rose to 8 per cent and remained there till the closing weeks of the year, when an easier tendency developed. The volume of commercial paper offered through brokers, after increasing almost steadily for 15 months, began in February, 1920, to decrease almost equally steadily, sellers of paper evidently preferring to borrow from their own banks rather than pay the rates demanded by banks with surplus funds to invest. But there is this very distinct difference between the commercial paper market and some of the other money markets. Commercial paper, once bought by a bank, can not usually be sold or converted into cash except by indorsing and rediscounting it with another bank or with a Federal Reserve Bank. But money lent on call to members of the New York Stock Exchange can normally be converted into cash within 24 hours without requiring any indorsement or liability on the part of the lender. As is well known, however, there have been times when, as a practical matter, call money could not be so converted. Until a few years ago call money was the only investment of presumably instant convertibility, and the rates for call money were generally considered indicative of the volume of available surplus funds. But recently, with the development of the open markets in bills and Treasury certificates of indebtedness, both representing instruments which are instantly convertible and which in volume far Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

382 ANNUAL REPORT FEDERAL RESERVE BOARD. overshadow the call-money market, the importance of the latter has dwindled considerably. Another factor operating against the importance of the call-money market is that loans on securities other than those of the United States Government are not available as a basis for credit with a Federal Reserve Bank, and investors in addition to desiring for their current funds an investment of undoubted convertibility in the open market, now want the additional protection of an investment which, if the open market fails, can be converted into cash at a Federal Reserve Bank. Rates in the call-money market, therefore, can no longer be considered as an accurate indication of the amount of available surplus funds. Another factor also tends to diminish, for the present at least, the importance of call-money rates as an expression of the volume of surplus funds. This is the heavy borrowings of the member banks from their Reserve Banks. For presumably such surplus funds as they gradually accumulate will generally be used to pay off loans at their Reserve Banks rather than for investment, merely for profit, in the call loan, the bill, or the certificate markets. The market for bankers' acceptances has been greatly developed and the market for certificates has been entirely created during 1920. Both meet the most rigid requirements of safety and ready convertibility into cash, and the development of active markets for both has been greatly facilitated by the higher rates which have recently prevailed. Bill market.— Throughout the year the estimated volume of bankers7 and indorsed foreign trade acceptances has remained steady at about $1,000,000,000, in spite of the decline in commodity prices and of the slackening of trade in the autumn with South America and the Orient. Discount houses and dealers in bills in New York City report a steadily broadening market for bankers' acceptances during the year not only among savings banks, commercial banks, and trust companies which have surplus funds, but also among insurance companies, industrial corporations, and private investors having funds which they wish to place in an investment combining satisfactory rate, minimum risk, and instant convertibility. The market for bills was by no means confined to the larger financial centers. Through the efforts of dealers, bankers, and Federal Reserve Banks many purchasers of bills have been found in smaller centers and even in country districts throughout the United States. Bills placed with such investors have been almost entirely those bearing no banking indorsement. The Federal Reserve Bank of New York in 1920, as during previous years, has stood ready at all times to purchase such bills as the market would not absorb, provided they bore satisfactory banking indorsement. In this policy a number of the other Reserve Banks have joined, in addition to performing a similar function for bills originating in their own districts. The Federal Reserve Bank of New York has also, from time to time, through 15-day sales contracts, made short advances of moderate amounts to dealers at times when they found difficulty in carrying their portfolios of bills, at rates bearing some relation to the current bill rate. In this way it has been made possible for dealers readily to purchase bills as they were created, and at steady rates—both prerequisites for the development of a reliable discount market. In this respect the bill market has been in sharp Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2—NEW YORK. 383 contrast with the call-money market, in which violent rate fluctuations occurred in late 1919 and early 1920. During the year the discount market made distinct progress toward independence of Federal Reserve Bank support. The higher rates which prevailed in the latter half of the year attracted not only much private and corporate money to make its first investment in bills, but a considerable volume of the funds of foreign banks as well. The consistent maintenance of a free-gold market in the United States and the confidence inspired by the demonstrated ability of our open discount market to function at all times have together made this country a highly desirable market for the investment of foreign funds which have found their way here. In the aggregate, the investment of such funds in bankers7 acceptances and United States certificates of indebtedness has constituted an important contribution of capital to our markets. As a result of the better demand and distribution the investment of the Federal Reserve Bank of New York in bills decreased from $209,000,000 on January 2 to $110,000,000 on December 30, or 47 per cent. The investment of all Federal Reserve Banks in bills decreased from $575,000,000 on January 2 to $255,700,000 on December 30, or 56 per cent. Certificate market.—Although the $3,260,000,000 of Treasury certificates of indebtedness which were outstanding at the first of the year were largely held by investors rather than by banks, no open market existed for such certificates, and a purchaser wishing to realize upon them before maturity was obliged to resell them to the bank from which he purchased them. The bank in turn would borrow upon them from the Federal Reserve Bank. In the early spring, owing to the increasing demands for credit and the desire of many purchasers to convert large amounts of certificates into cash, it seemed advisable to attempt to create an open market in certificates. This was undertaken with the consent of the Treasury Department with the two-fold object of facilitating the sale of future issues of certificates, and of relieving the banks from the burden of reabsorbing certificates they had sold. Certain dealers in short-time investments undertook to effect a secondary distribution of certificates, purchasing them from the banks and reselling them to private investors and corporations having funds available for temporary investment. For a time this bank, under 15-day sales contracts, facilitated such operations by making moderate advances against certificates. The development of the open market was greatly accelerated by the action of the Treasury in offering certificates at rates which attracted public buying at the time of the original offering. This not only relieved the banks but in the latter hall of the year resulted in substantial oversubscriptions to each issue. Whereas in the early months of the year certificates were frequently offered at a discount and bids were difficult to obtain, at the close of the year every outstanding issue, except the small maturity of March 15, 1921, bearing 4f per cent interest, was selling freely at par or a slight premium. At the opening of the year the 821 member banks, which report weekly to the Federal Reserve Board, and which represent between 40 and 50 per cent of the banking resources of the country, held $857,000,000 certificates, and at its close they held $272,000,000 certificates, a decrease of 68 per cent. At the opening of the year $462,000,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

384 ANNUAL REPORT FEDERAL RESERVE BOARD. certificates were being borrowed upon at the 12 Federal Reserve Banks, while at the close of the year only $188,000,000 certificates were being so used, a decrease of 59 per cent. EARNINGS AND EXPENSES. The following statement gives in brief form the earnings, expenses, and disposition of profits of the Federal Reserve Bank of New York for the years 1920 and 1919. For a more detailed statement see Schedule 4. 1920 INCOME. | | From bills discounted for members | $49,839,182.52 $29,935,910.97 From bills purchased I 8,323,050.37 3,326,838.44 From United States securities owned ! 1,975,648.98 1,888,497. 28 Other income i 756,644.76 181,165.55 Total income. 60,894,528.61 35,332,412.24 DISBURSEMENTS. i Operating expenses I 5,782,204.40 4,613,219.83 Cost of Federal Reserve currency, etc ! 1,217,050.64 1,121,125.07 Disposition of net profits: i Charged off on real estate ! 285,676.64 900,031.72 Added to various reserve accounts i 481,464.29 694,423. 05 Sundry adjustments ' 43,993.04 Dividends paid i 1,477,096.58 1,291, 047. 84 • Added to surplus I 12,332,523.41 23,964, 678. 06 Paid United States Government as franchise tax I 39,318,510.65 2,703, 893. 63 Total disbursements i 60,894,526.61 35,332,412.24 The disbursements for current expenses do not include the cost of the departments performing fiscal-agency functions for the United States Government, aggregating $1,516,454.64, which has been or is to be reimbursed to the bank by the Treasury Department. LOANS AND INVESTMENTS DURING 1920. In 1920 the total loans and investments of the Federal Reserve Bank of New York reached their highest point, as appears from the following comparisons: High point of 1920, reached Nov. 1, was $1,166, 000, 000 High point of 1919, reached Dec. 30, was 1, 079, 000, 000 Low point of 1920, reached Apr. 22, was 986, 000, 000 Low point of 1919, reached Sept. 19, was 734, 000, 000 Total on Dec. 31, 1920, was 1, 046, 000, 000 Total on Dec. 31, 1919, was 1, 062, 000, 000 REDISCOUNTS AND ADVANCES. During 1920 the amount rediscounted for or advanced to member banks fluctuated between $651,900,000, the low point, on March 17, and $1,006,800,000, the high point, on November 11. But many of the larger New York City members borrow only for a single day or for two or three days and renew their loans only for such amounts as they actually need, thereby adjusting their reserve position almost daily to correspond with legal reserve requirements. This resulted in an enormous turnover of discounts and advances, averaging about $160,000,000 a day and aggregating for the year over $50,000,000,000, as against $42,000,000,000 during 1919. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2 NEW YORK. 385 PURCHASED BILLS. During the year this bank purchased in the open market for its own account nearly $1,700,000,000 of bankers' acceptances and indorsed trade bills, an increase of about $500,000,000 over the aggregate for 1919. The increase was due in large part to the shorter maturities purchased and the relatively larger turnover which this involved. At the same time substantial amounts were purchased for other Federal Reserve Banks, for member banks in this district, and for foreign correspondents. In 1920 this bank purchased acceptances from other Federal Reserve Banks amounting to $11,000,000, and sold acceptances to them out of its own portfolio amounting to $147,000,000. Purchases for member banks and foreign correspondents will be described more in detail elsewhere. GOVERNMENT OBLIGATIONS OWNED. The policy which this bank adopted at the outset of keeping its direct investment in Government securities at a minimum has been followed throughout 1920. The Government obligations owned have been confined almost exclusively to three classes. 1. One-year special 2 per cent certificates of indebtedness to secure Federal Reserve Bank note circulation. Throughout the year the bank has held $59,000,000 of these certificates, purchased from the Treasury under the authority of the Pittman Act. 2. Special Treasury certificates of indebtedness running for a few days. 3. Certificates of indebtedness held under sales contract. The largest amount held under sales contract at any one time in 1920 was $17,788,000 on September 8, and the smallest amount $390,000 on December 31. RATES OF DISCOUNT. The marked decline already noted in the proportionate amount of Government obligations offered as the basis for advances or rediscounts at the Federal Reserve Bank, took place concurrently with the maintenance of rates of discount under which loans secured by Government obligations enjoyed preferential treatment. On January 1, 1920, the discount rate was 4f per cent for all classes of paper. On January 23 the commercial paper rate was increased to 6 per cent and on June 1 to 7 per cent. The rate on loans secured by Liberty bonds and Victory notes was advanced on these dates, respectively, to 5J per cent and 6 per cent. The preferential rate on loans secured by United States Treasury certificates of indebtedness, first of 4f per cent, then of 5 per cent and later of 5^ per cent, was maintained throughout the year. Rates for the rediscount of bankers' acceptances were progressively advanced to 6 per cent on June 1. No changes in rates were made after June 1. FEDERAL RESERVE CURRENCY. The circulating notes of this bank reached their highest point in 1920, corresponding to the generally higher level of bank loans and in the early part of the year reflecting the rapidly rising level of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

386 ANNUAL REPORT FEDERAL RESERVE BOARD. commodity prices. Of the two kinds of circulating notes issued, the Federal Reserve Bank notes are a small issue now being reduced; but the Federal Reserve notes of this and the other Federal Reserve Banks represent the chief fluctuating, and at present the most important, element in the country's nonmetallic currency. FEDERAL RESERVE NOTES. The increase in the note circulation from the first of the year to the maximum was $75,600,000, as compared with about $100,- 000,000 in 1919 and a much larger increase in each of the two preceding years. While the high point is usually reached in the Christmas holidays, it was reached in 1920 on November 5 when, however, the circulation was barely above that of early July. The volume of notes, then, like the volume of deposits and loans, did not shrink precipitately as did commodity prices but during the autumn a beginning was made toward a gradual reduction of the circulating medium. FEDERAL RESERVE BANK NOTES. Federal Reserve Bank notes have been issued by this bank only under the provisions of the Pittman Act of April 23, 1918, the purpose of which was to create a supply of currency of small denominations, mostly $1 and $2, to replace silver certificates which were being withdrawn from circulation so as to release silver dollars for export as bullion to India and other foreign countries. About 270,000,000 silver dollars were melted under this authority, of which about $10,000,000 was turned over to the Director of the Mint to be reminted into subsidiary silver currency and the remainder was sold as bullion at slightly more than $1 per fine ounce. The amount of Federal Reserve Bank notes which could be issued under the Pittman Act by all Federal Reserve Banks was thus limited to $270,000,000, of which this bank was authorized to issue $59,276,000. The amount actually issued and in circulation declined during 1920 from $53,000,000 to $39,000,000. THE SUBTREASURY AT NEW YORK. On December 6, 1920, the Secretary of the Treasury, under the authority of an act of Congress approved May 29, 1920, turned over to the Federal Reserve Bank of New York certain functions previously performed by the Subtreasury, thereby completing in this district the transition from the Subtreasury system of handling Government fiscal agency operations established in 1846, to the more comprehensive method now provided in the Federal Reserve System. At the time of the transfer this bank received on deposit $1,447,- 966.36 in coin, representing all of the general fund then in the hands of the assistant treasurer at New York. RESERVE POSITION. The highest amount of paper which this bank has had under rediscount with other Federal Reserve Banks, in order to maintain its legal reserve percentage, was $100,000,000 on January 15, 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2—NEW YORK. 387 The highest amount which this bank had under rediscount for other Federal Reserve Banks during 1920 was $87,100,000 on June 5, 1920. Disregarding rediscounts and sales of acceptances between Federal Reserve Banks, the lowest average reserve percentage of this bank in 1920 was 31.6 and the highest 47.6. On several occasions during the year, at times when the movement of funds was exceptionally heavy, the reserve of this bank fell slightly below the legal minimum for a day or two. For these discrepancies the bank was penalized by the Federal Reserve Board, under the provisions of paragraph (c) of section 11 of the act, in the aggregate amount of $23,301.10. COLLECTIONS AND CLEARINGS. The collection services of the Federal Reserve Bank include the collection of checks, notes and drafts, coupons and maturing bonds, and the transfer of funds by telegraph for the benefit of member banks and their customers. The new facilities which have been developed and the time saved over that formerly required, when each bank relied upon correspondent banks in other cities to serve as collection agents, have caused a continuous growth in the volume of such business transacted by the Federal Reserve Bank. CHECK COLLECTIONS. During 1920 the Federal Reserve Bank of New York collected or forwarded for collection a daily average of 181,228 checks drawn upon banks in all parts of the country. Collections within this Federal Reserve district are made directly from member or nonmember banks or through local clearing houses. Checks drawn upon banks outside the district are collected through other Federal Reserve Banks. A bank receives credit for each check it deposits, either immediately or in one, two, four, or eight days according to an average time schedule which is so designed as to cover the time usually required for the mail to reach the bank upon which the check is drawn, and for that bank to make payment at-its own Federal Reserve Bank. Each transaction is settled on the books of the Federal Reserve Bank if it is entirely within this Federal Reserve district, or by telegraph between the Federal Reserve Banks if the transaction is between two Federal Reserve districts. Thus time is saved not only by the expeditious routing of checks to banks upon which they are drawn, but by the telegraphic settlements between Federal Reserve Banks. The check collection service is rendered without charge. A modification of this plan, which makes a still further saving of handling and time, has been the arrangement by which member banks are allowed to send checks for collection directly to the Federal Reserve Banks of other districts is being increasingly availed of. In the last year 150 member banks in this district sent checks amounting to $11,955,000,000 directly to other Federal Reserve Banks and 582 member banks in other districts sent checks amounting to $8,663,000,000 directly to this bank. The 1920 check collection operations as compared with those of previous years are shown in Schedule 6. The number of checks col- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

388 ANNUAL REPORT FEDERAL RESERVE BOARD. lected or routed for collection by the Federal Reserve Bank of New York was 17 per cent greater than in 1919. EXTENSION OF LOCAL CLEARING HOUSES. In 1920 the Northern New Jersey Clearing House Association was established by a majority of the banks in Jersey City and Hoboken and by several banks in Newark, Bayonne, and near-by cities. It performs for these banks the functions of a city clearing house. It has effected a saving of two or more days in the time required for the collection of checks drawn on its members, and the Federal Reserve Bank of New York gives immediate credit for checks which can be cleared through it. The organization on Decenber 31 had 17 banks and trust companies as members and 6 as associate members. Its meetings are held in a room at 37 Liberty Street, New York, provided by the Federal Reserve Bank of New York. The daily clearings of the association at the close of the year averaged about $4,000,000, of which this bank presented about $3,000,000 for collection. Arrangements were made during the year whereby members of the clearing house associations of Elmira, N. Y., and Binghamton, N. Y., settle their balances daily by wire on the books of the Federal Reserve Bank. This arrangement has resulted in a settlement which provides actual reserve money instead of a settlement which consisted in the acceptance of a check drawn on some other bank. It has eliminated risk and reduced float. The one-way clearing arrangements with Bronx and with Brooklyn banks were maintained during the year. During the year the volume of checks presented by this bank against Bronx banks was $1,308,000,000 and against Brooklyn banks was $1,650,000,000. Settlements for these checks are made in Federal Reserve funds on the day on which they are presented. NOTE AND COUPON COLLECTIONS. During 1920 the Federal Reserve Bank handled for collection 227,262 notes and drafts payable in New York City, as compared with 99,978 in 1919, an increase of 127 per cent. Notes and drafts on places outside of New York City numbered 336,552, as compared with 146,037 in 1919, an increase of 130 per cent. The collection of matured bonds and coupons totaled $60,115,335 in 1920, as compared with $39,748,000 in 1919, an increase of 51 per cent. GOLD SETTLEMENT FUND. The increased volume of interdistrict transactions is shown in the following aggregate settlements of the Federal Reserve Bank of New York, made through the gold settlement fund in each year from 1915 to 1920: 1915 $556, 432,000 1916 2,335,225, 000 1917 17,118,917,000 1918 32, 935, 576, 000 1919 41, 932, 723, 000 1920 48, 840,900, 000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2 NEW YORK. 389 TELEGRAPHIC TRANSFER SYSTEM. Through the gold settlement and the private wire connecting the various Federal Reserve Banks it is possible to make payments between widely separated parts of the country immediately at par and without cost. This service is used by the Treasury and by member banks for the convenience of themselves and their customers. The growth of its use is shown by the following table, which gives the number of transfers made by this bank each year from 1916 to 1920: Year. Number. Amount. 1916 (nine months) 2,971 $484,500,000 1917 10,302 6,768,400,000 191S 39,099 19,384,371,849 1919 82,321 18,245,250,181 1920 . 147,302 17,021,509,734 Although the number of transfers during 1920 was nearly double the number during 1919, the amount was smaller. This is due in part to a decline in the amount of transfers of United States Treasury funds between Federal Reserve Banks. An increasing number of banks have been making use of this service. In January, 1920, the number of telegraphic transfers averaged 363 a day and in December 712. RELATIONS WITH BANKS. In 1920 the work of. the member, bank relations department was developed, and its traveling representatives made more than 1,000 visits to member banks outside of New York City. In addition, officers of member banks outside of New York City were invited, in groups of about 30, to spend a day at the Federal Reserve Bank examining its facilities, suggesting improvements in its service, and discussing problems of bank operation and policy. During the year 369 member and 22 nonmember banks were represented at these conferences. PURCHASING ACCEPTANCES FOR COUNTRY MEMBER BANKS. Especially effective has been the work of this department in educating country member banks to avail themselves much more freely than heretofore of the services of this bank in purchasing bankers' acceptances. This service was opened to out-of-town member banks in 1919. During that year 873 acceptances, aggregating $8,199,947, were bought for 38 member banks. In 1920, 4,825 acceptances, aggregating $42,424,017, were bought for 230 member banks, mainly the smaller of the country institutions. Purchases for member banks are made on their order, either of particular bills or of an approximate amount of given maturities of such names as this bank buys for its own account. Such bills always bear a banking indorsement other than that of the acceptor, thereby becoming three-name paper of the class to which this bank's own purchases are confined. Paper bought for member banks is held, if Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

390 ANNUAL REPORT FEDERAL RESERVE BOARD. desired, for their account for collection or such other disposition as they may direct. No charge is made for this service. These purchases were of substantial benefit in developing a broader discount market. A number of banks which began by buying bills through this bank have since become regular buyers for their own account directly from dealers, also at their discretion taking unindorsed bills at slightly higher rates. In time the present service offered by this bank may become unnecessary. RELATIONS WITH BANKING DEPARTMENTS. As in previous years, the relations with the office of the national bank examiner in this district and with the banking departments of the States of New York, New Jersey, and Connecticut were of the most cordial nature. MEMBERSHIP OF STATE INSTITUTIONS. The number of State banks and trust companies which are members of the Federal Reserve System increased from 122 to 134 during the year. Nineteen State institutions were admitted to membership; three withdrew from membership; six were consolidated into three, and one trust company was converted into a national bank, making a net increase of 12 in the list of State institution members. FIDUCIARY AND OTHER POWERS. There were 29 additions in 1920 to the list of national banks in the district exercising fiduciary powers under authority of the Federal Reserve Board granted in accordance with the amendment to the Federal Reserve Act approved September 26, 1918. Three national banks, which had received authority previously to exercise some of the powers, received additional authority in 1920. MONTHLY REVIEW OF CREDIT AND BUSINESS CONDITIONS. Throughout the year this bank, like other Federal Reserve Banks, has published for circulation among the bankers and business men of the district a monthly review of credit and business conditions. The review is an outgrowth of the reports which had been sent monthly by the Federal Reserve Agent to the Federal Reserve Board for its information. It is a summary of important financial and industrial developments based upon personal inquiry and upon analysis of current banking and business statistics. From time to time it also contains informative statements on the operations of the Federal Reserve Bank. FOREIGN RELATIONS. Bank of England.—In 1919 the Federal Reserve Bank of New York, acting for all Federal Reserve Banks, purchased from the United States Grain Corporation about 725,000,000 marks of German gold, equivalent to $173,000,000, which was forwarded from the Continent to the Bank of England and by it reduced to bars and held earmarked for account of this bank. During the latter part of 1919 and the early part of 1920 the amount of this earmarked gold was reduced to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2 NEW YORK. 391 $111,458,044.95 by sales to banks and bankers desiring to ship gold from New York to various parts of the world in settlement of trade balances. But as such sales had practically ceased by midsummer it was decided to bring the balance of the gold to New York. The shipments were undertaken by the Bank of England. They began on September 22, and the last consignment arrived in New York on November 12. The gold was deposited in the New York assay office for credit to the 12 Federal Reserve Banks and is being remelted and reassayed. When this gold reached London from the Continent in the autumn of 1919 it was included in the reserves of the Federal Reserve Banks, consequently its subsequent importation to the United States had no effect upon the reserve position of the Federal Reserve Banks. Bank of France.—No change has occurred in relations with the Bank of France, but the services of this bank were availed of in consummating certain parts of the transaction for the repayment of France's share of the Anglo-French loan, which matured on October 15, 1920. In these transactions this bank acted in behalf of all the Federal Reserve Banks. Bank oj Japan.—The relations between the two institutions have been more active during the past year. An agreement has been effected covering mutual accounts and investments, in accordance with which operations have been conducted in this market. De Nederlandsche Bank.—The active relations of a year ago have continued, and this bank acts in many particulars in the capacity of correspondent of de Nederlandsche Bank, for the conduct of its transactions in New York. De Javasche Bank.—The arrangement effected in April, 1919, relating to deposits in current accounts, investments, collections, and to the ear-marking of gold, has continued in active operation. The Federal Reserve Bank of New York formally appointed de Javasche Bank its agent and correspondent in Java, and in turn has acted during the year as New York agent and correspondent of de Javasche Bank. Bank of Spain.—The account opened with the Bank of Spain in 1919, in connection with the payment of the peseta credit arranged by the United States Treasury, was closed when the last installment of the credit was retired in March, 1920. Argentina.—During 1920 the account of the Argentine Government with the Federal Reserve Bank of New York, opened in 1918, under an agreement between the United States and Argentina for the stabilization of exchange, was closed by a gradual withdrawal of the deposits, thereby avoiding, to the extent of such deposit's, shipment of gold by Argentina to the United States in payment of adverse trade balances. Silver shipments to the Orient.—In the early months of 1920 $13,000,000 of silver was shipped to Shanghai under an arrangement concluded in 1919 between the Federal Reserve Board, acting in conjunction with the Treasury, and American banks having their own branches in the Orient, whereby free standard silver dollars in the Treasury would be shipped as necessary to regulate our exchanges with oriental countries, thereby protecting our subsidiary coinage from export. The abrupt decline in the price of silver, which began early in the year, rendered further operations under the arrangement unnecessary. 45525°—21 26 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

392 ANNUAL REPORT FEDERAL RESERVE BOARD. THE BUFFALO BRANCH. The number and resources of member banks in the Buffalo branch territory at the time of organization of the branch and at the end of 1920, were as follows: National banks. State c b o a m n p k a s n a ie n s d . trust May 15,1919. Dec. 31,1920. May 15,1919. Dec. 31,1920. Number 57 60 21 Capital and surplus $16,151,300 $17,373,000 $7,657,500 $33,115,000 Total resources $181,516,000 $180,972,000 $91,471,000 $327,400,000 The Buffalo branch, as originally organized, did not carry the accounts of any banks in its territory, and it was optional with them whether they should deal with the Buffalo branch or with the main, office in New York. But in 1920 the accounts and discounts of the member banks in the city of Buffalo were transferred from New York to the branch office; so that their relations with the Federal Reserve Bank of New York are all through the Buffalo branch. The transfer of accounts of the Buffalo banks on May 1 resulted in placing with the Buffalo branch reserve deposits of $17,213,382.94 and deferred credits of $3,444,073.91. On July 1 discounts amounting to $35,651,938 were transferred to the branch, and all loans of Buffalo banks have since been made at the branch subject to final approval by the directors of the Federal Reserve Bank of New York. FISCAL AGENCY OPERATIONS. THE SALE AND HANDLING OF GOVERNMENT ISSUES. At the conclusion of the Liberty and Victory loans in 1919, the operations which this bank performed as fiscal agent of the United States underwent a material change. The organization which had successfully carried through the work of selling these securities in this district dissolved, and the operations of the bank were concentrated on the exchange and conversion of bonds and notes, rather than on their sale. CERTIFICATES OF INDEBTEDNESS. The issues of certificates of indebtedness during 1920 were about one-third of the volume issued in 1919, and the amount outstanding throughout the country on December 31, 1920, was $2,317,000,000 as compared with $3,262,000,000 on December 31, 1919. Since 1917, when certificates of indebtedness were first issued, the amount sold throughout the country was about $30,000,000,000, of which about 43 per cent were sold by the Federal Reserve Bank of New York, as is shown in the following table: Per cent Year. U T n o i t t a e l d s a S l t e a s t i e n s. Sale d s i i s n tr i s c e t c . ond s s o ec ld o n in d district. 1917 $3,880,570,000 $2,422,075, 500 62.4 1918 . 10,742,094,000 4,091, 260, 000 38.1 1919 11,246, 820, 500 4,506,155, 500 40.1 1920 . 3,939, 832, 500 1,716,680, 500 43.6 Total. .. 29, 809,317,000 12,736,171,500 42.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2—NEW YORK. 393 The figures showing the percentage sold in this district in 1920 do not, however, reflect the intensity of the demand. Allotments made by the Treasury, particularly in recent issues, were customarily much below the subscriptions received. To the two issues dated December 15 the aggregate subscriptions in this district amounted to $413,000,000, which was slightly more than the amount requested by the Treasury for the whole country. GOVERNMENT DEPOSITS AND DISBURSEMENTS. The largest amount on deposit with qualified depositaries in 1920 was $384,330,000 on January 7, and the smallest was $8,045,000 on December 13. The largest amount of securities in the vaults of the bank and in the hands of custodians pledged as collateral against these deposits was $551,828,000 on January 8. There was a notable increase in the proportion of commercial paper to the amount of Government obligations so pledged. Receipts of taxes were deposited directly with this bank by the collectors of internal revenue in this Federal Reserve district, and were used for the redemption of maturing certificates of indebtedness and for other Government purposes. Income and excess profits tax receipts for each installment paid in 1920, with corresponding figures for 1919, were as follows: Date. 1920 1919 Mar. 15 payment.. $253,570,234 $318,399,445 June 15 payment.. 248,615,534 298,097,393 Sept. 15 payment. 233,192,733 291,262,079 Dec. 15 payment.. 227,621,545 272,046,604 Aside from checks drawn in redeeming certificates of indebtedness, the payment of coupons, etc., more than 9,500,000 miscellaneous Government checks were handled, aggregating $2,407,000,000. This was a marked decrease from the total handled during the years of war activity. In 1918 more than 11,000,000 Treasury checks, amounting to $5,000,000,000, and in 1919 nearly 13,000,000 checks, amounting to $4,300,000,000, were handled. EXCHANGE AND CONVERSION OF GOVERNMENT BONDS. In March, 1920, the Treasury Department began to supply, issue by issue, permanent bonds for the temporary bonds which had been sold to the public during the Liberty and Victory loans. In this district the exchange was carried on by the Government bond department of the Federal Reserve Bank, through which the original issue was conducted. GOVERNMENT LOAN EXPENSES. In connection with the five Government loans, this bank as fiscal agent of the United States financed all expenses incident to the work in this district, including the expenses of the selling organizations and of the fiscal agency departments of the bank handling the various issues after sale. The total expenses up to December 31, 1920, were slightly less than $12,000,000. The Treasury Department in periodic payments has reimbursed the bank practically in full, and there Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

394 ANNUAL REPORT FEDERAL RESERVE BOARD. remain out of the total sum, representing some 150,000 individual payments, about $2,700 for which, the Treasury under its rules can not make reimbursement. Steps were taken early in 1921 finally to clear the accounts. The bank continues to advance necessary expenses in connection with the activities of the present Government loan organization, and also the expenses incident to the conversion and exchange of bonds, and other fiscal agency operations. SCHEDULE 1.—Comparative statement of condition. Dec. 31, 1920. Dec. 31, 1919. Dec. 31, 1918. Dec. 31, 1917. RESOURCES. Gold and gold certificates $132, 723,247.12 $154,233, 758. 73 $256, 765,025. 83 $325,131,571.99 Gold settlement fund, Federal Reserve Board 45, 901, 896. 46 14, 976, 859. 68 66, 790,455. 76 5, 854, 000. 00 Gold with foreign agencies 1, 211,100. 00 48,194, 795. 30 2, 010, 961. 70 18,112,500.00 Total gold held by bank 179, 836, 243. 58 217, 405, 413. 71 325, 566, 443. 29 349, 098, 071. 99 Gold with Federal Reserve agent 254, 575, 330. 89 306, 756, 215. 00 274, 392, 165. 00 250, 598, 565. 00 Gold redemption fund 39, 000, 000. 00 25, 000, 000. 00 25, 000, 000. 00 10, 000, 000. 00 Total gold reserves 473,411, 574.47 549,161, 628. 71 624, 958, 608. 29 609,696, 636. 99 Legal tender notes, silver, etc 144, 759, 115. 20 46,193, 650. 50 47, 570, 176. 85 40, 248, 018. 85 Total reserves 618,170,689.67 595, 355, 279. 21 672, 528, 785.14 649, 944,655. 84 Bills discounted: Secured by Government war obligations—for members 454, 751, 722* 52 562, 089, 842. 45 652, 567,674. 72 139, 374, 001. 91 Allother: For members 416,686,474. 82 228, 713, 445. 79 44, 773, 780. 97 85, 743, 911. 39 For other Federal Reserve banks 25,191, 033.66 Bills bought in open market 113,740,374.53 202, 902,609. 54 77, 576,632. 94 148, 770,185.44 Total bills on hand 985,178, 571. 87 993, 705, 897. 78 774, 918, 088. 63 399, 079, 132. 40 Municipal warrants 510, 701. 32 United States Governmen t bonds... 1, 468, 305. 55 1, 256, 800. 00 1, 395, 750. 00 5,164, 748. 50 United States Victory notes 50, 000. 00 50, 000. 00 United States certificates of indebtedness 59, 666, 000. 00 67, 721, 500. 00 1 128, 850, 500. 00 1 19, 493, 000. 00 Total earning assets 1, 046, 362, 877. 421, 062, 734,197. 78 905, 164, 338. 63 424, 247, 582. 22 Bank premises 4, 092, 497. 30 3, 200, 626. 83 2, 317, 692. 39 5 per cent redemption fund against Federal Reserve Bank notes 2, 766,360. 00 2, 900, 000. 00 1, 689, 250.00 Uncollected items and other deductions from gross deposits 141, 346, 433. 94 250, 055, 887. 88 196, 764, 408. 42 75,962, 436. 73 All other resources 1, 431, 316. 02 1,618,195.11 3, 403, 790. 59 458, 536.9] Total resources 1, 814,170,174. 35 1, 915, 864,186. 81 1, 781, 868,265.17 1,150,613, 211. 70 LIABILITIES. Capital paid in 26,372,650. 00 22,390, 750. 00 20, 820,100. 00 18,695, 950.00 Surplus 56, 414, 456. 04 45, 081, 932. 63 8, 322, 040.00 Government deposits 11, 297, 895. 88 5, 848, 393. 50 5, 705,629.16 11, 870, 767. 74 Due to members—reserve account... 702, 431,237. 92 755, 951,452. 59 705,062,061. 27 652, 791, 808. 26 Deferred availability items 93, 318, 901.11 168, 870, 359. 39 158, 094,462. 57 48, 321, 854. 49 Other deposits, including foreign Government credits 12,133, 377. 48 45, 395, 971. 09 106,357, 299.18 18, 473, 788. 82 Total gross deposits 819,181, 412.39 976,066,176. 57 975, 219,452.18 731, 458,219. 31 Federal Reserve notes in actual circulation 867,480,630. 00 807, 615, 970. 00 729, 824,330.00 397, 353, 805.00 Federal Reserve bank notes in circulation—net liability 38, 833, 200. 00 54, 673, 000. 00 33, 034,000. 00 All other liabilities 5, 887, 825. 92 10, 036, 357. 61 14, 648, 342.99 3,105, 237. 39 Total liabilities 1, 814,170,174. 35 1, 915, 864,186. 81 1, 781, 868,265.17 1,150,613, 211. 70 1 Including one-year Treasury notes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2 NEW YORK. 395 FEDERALRESERVEBANKOFNEWYORK.i MOVEMENT OF EARNING ASSETS DURING 1920. 200 200 100 JOO y^^^^^k^^l^^fe^^l/-) UNITED STATES SECURITIES 300 300 200 200 100 PURCHASED BILLS MELD W 60 ' 60 40 20 0 PERCENTAGEOFIVARFAFERTOTOTAL DIXOUHTS FOR BAMKS M DISTRICT. IIOO IIOO 1000 Km 900 900 600 600 300 300 200 200 JOO 100 DISCOUNTED BILLS. (SEE NOTE BELOW) 1300 1300 1200 1200 1100 IIOO WO IOOO 900 900 800 eoo 700 TOO €00 600 SJO 500 400 400 300 300 200 200 /OO W 0 O TOTAL EARNING ASSETS \JAN. FEB. MAR.APR. MArjUfttJULf AU6. SfFT OCT.NOK DEC. A :3to]ter secured, by Government Jf&r Obligations discoarde&ftrSanKs irvDistrict. B\'Jo£al^tfterdisco£uUed forjtanfoui&isdrict. CcJoM^tscouMjCedfttfterkeld,. fftftcc&ebveeit,linesB^andCrepresents -whereabovelut&B-JkfterdtecottiiGaLibrj and-whcrebelowZine$'-Skjurrediscountedwith,;0ther3ederal$eserreJ8anJCs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—Movement of principal asset and liability items during 1920. CO CO [ Amounts in thousands of dollars.] Discounted bills. Purchased bills. Reserve per- Discounted for member banks in this district. Date. e a a T s r s o n e t i t a s n . l g " T he o l t d a . l c R B F R o o w e e a u e t s d n h n i d e e t k e t r i h r e s s v r a - . d e l i To A t . al. w e b S r y a e n c r B m G u o . r e b o e n l v d i t - - P (B er -s C c - . A en ) t . m i c n h P a o a r u s p k r e e e - d n t. R B F S o e e o a t s d l n h d e e k e r r s v r t a . o e i l T he o l t d a . l U s S e t n t i c a e i u t t s e r e . i s d - re T s c e a o r s t v h a e l s. dep N o e s t its. n R c F i o t e e r i t c d s o e u e e n s r l r . a v i a n - e l Actual. jus A te d d - .2 gations. 3 Jan. 2 1,101,634 811,723 811,723 571,822 70.4 241,009 32,357 208,652 81,259 620,883 790,667 811,119 38.8 36.7 9 1,025,095 761,303 761,303 494,173 64.9 224,739 29,943 194,796 68,996 569,017 696,417 776,592 38.6 36.6 16. 993,322 708,309 79,500 787, 809 499,304 63.4 233,112 20,817 212,295 72,718 617, 923 731, 525 757,906 41.5 34.8 23 1,034,298 761,369 43,700 805,069 526,473 65.4 227,612 24,906 202,706 70,223 596,017 746,530 761,643 39.5 35.0 30 1,024,089 762,127 50,000 812,127 595,495 73.3 216, 864 25,649 191,215 70,747 608,955 741,647 769,170 40.3 35.3 Feb. 6. 1,018,937 752,352 49,800 802,152 581,479 72.5 219,153 22,277 196, 876 69,709 589, 803 696,008 788,121 39.7 34.9 13. 1,070,116 797, 566 49,735 847,301 591,022 69.8 223,215 18,654 204, 561 67,989 602,968 738,413 809,254 39.0 34.5 20. 1,100,386 819,394 48,100 867,494 616, 710 71.1 227,427 10,113 217,314 63,678 575,402 732, 713 817,411 37.1 33.4 27. 1,148,056 852,966 47,950 900,916 630,281 70.0 238,615 7,358 231,257 63,833 616, 339 810,960 826,287 37.6 34.3 Mar. 5. 1,102,018 809,972 67,950 877,922 601,680 68.5 234,034 5,424 228,610 63,436 600,863 743,475 831,694 38.1 33.5 12. 1,077,510 787,698 84,550 872,248 598,059 68.6 230,264 4,276 225,988 63,824 610,132 731,471 830,531 39.1 33.4 19. 1,049,042 724,177 19,795 743,972 529,631 71.2 203,629 3,408 200, 221 124,644 584, 402 670,183 837,727 38.8 37.2 26. 1,075,777 815,634 32,015 847,649 571,771 67.5 198,565 2,081 196,484 63,659 611,462 731,370 834,188 39.1 36.9 Apr. 2. 1,028,991 736,197 - 5,000 731,197 526,942 72.1 176,090 4,341 171,749 121,045 664,929 726,955 847,782 42.2 42.3 9. 1,041,464 762,096 - 26,850 735,246 554,358 75.4 166,219 2,371 163,848 115,520 641,820 729, 855 835,554 41.0 42.6 o 2 1 3 6 . . 1 1 , , 0 0 3 2 3 7 , , 5 9 4 8 4 8 7 8 7 1 9 9, , 0 4 9 0 3 8 - - 6 3 3 6 , , 9 4 9 5 6 0 7 7 5 4 5 2 , , 0 9 9 5 7 8 5 57 5 0 1 , , 0 2 3 4 6 2 7 7 5 4 . . 5 2 1 15 4 4 5 , , 1 8 0 8 2 7 2 2 , , 3 37 7 1 1 1 14 5 2 2 , , 7 5 3 1 1 6 1 6 0 6 1 , , 1 6 6 2 4 0 6 6 5 8 4 7 , , 7 8 8 9 5 4 7 76 3 4 4 , , 2 2 2 1 2 4 8 83 3 2 5 , , 7 7 0 3 4 8 4 4 1 3. . 1 7 4 4 3 7 . . 9 0 I 30. 1,084,103 856,776 - 84,996 771,780 557, 785 72.3 152, 744 -7,687 160,431 66, 896 638,998 764,162 838,600 39.9 45.7 May 1. 1,049,015 812, 874 - 57,037 755, 837 540, 862 71.6 157,355 -5,470 162, 825 73,316 655,749 737,948 845,006 41.4 45.3 1,084,978 835,073 - 48,715 786,358 586, 577 74.6 168,466 -1,634 170,100 79, 805 649,167 767,737 843,927 40.3 43.4 211 1,037,515 789,126 • 80,368 708, 758 513, 566 72.5 173, 677 2,148 171, 529 76, 860 668,733 732,474 849,246 42.3 47.2 28. 1,063,429 804,638 • 84,425 720,213 510, 941 70.9 181, 743 2,371 179, 372 79,419 674,138 757,686 854,827 41.8 46.9 June 4. 1,093,725 840,335 • 78,544 761,791 513, 071 67.4 181,378 2,371 179, 007 74,383 647,988 754,027 861, 807 40.1 44.8 11. 1,084,659 822.433 59,740 762,693 529, 827 69.4 186,364 2,371 183, 993 78, 233 658, 601 760,107 851,002 40.6 44.1 18. 1,009,934 688,586 37,730 650,856 441,896 67.9 188,166 1,355 186,811 134,537 652,841 680,023 854, 828 42.5 44.9 25. 1,089,659 781,562 61,961 719,601 477,812 66.4 194,736 5,394 189,342 118,755 620,103 722,422 859,232 39.2 42.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 2. 1,114,847 831,887 35,354 796,533 514,347 64.6 195,088 14,926 180,162 102,798 651,002 753,636 882,506 39.8 41.0 9. 1,082,585 847,683 • 36,096 811,587 524,441 64.6 179,121 24,940 154,181 80,721 631,781 714,332 871,467 39.8 40.5 16. 1,057,992 830,373 • 40,183 790,190 520,952 65.9 172,315 24,940 147,375 80,244 639,365 717,690 850,323 40.8 41.7 23. 1,045,199 827,377 • 39,385 787,992 508,425 64.5 173,454 32,451 141, 003 76,819 615,634 683,620 846,836 40.2 40.7 30. 1,046,525 828,321 - 39,025 789,296 497,399 63.0 167,746 32,551 135,195 83,009 621,089 687.019 849, 589 40.4 40.8 Aug. 6. 1,063,409 858,578 - 27,285 831,293 537,261 64.6 163,698 29,122 134,576 70,255 615,291 694,723 852,369 39.8 39.7 13 1,079,609 902.538 - 10,391 892,147 554,289 62.1 150,456 41,013 109,443 67,628 599,206 691,769 852,695 38.8 36.8 20. 1,068,903 884,855 - 8,306 876,549 542,099 61.8 146,366 33,459 112,907 71,141 610,115 689.020 854,295 39.5 37.9 27, 1,091,479 920,043 920,043 553,992 60.2 141,446 40,923 100,523 70,913 598, 724 698,955 854,925 38.5 35.9 Sept. 3. 1,099,601 927,846 47,500 975,346 582,978 59.8 121,401 26,925 94,476 77,279 603,743 699,019 865,548 38.6 33.9 10, 1,075,434 894,673 34,600 929,273 547,148 58.9 122,719 20,064 102,655 78,106 610,289 679,270 864,439 39.5 36.0 17. 1,036,410 759,710 10,975 770,685 492,507 63.9 118,081 14,379 103,702 172,998 581,819 612,015 861,597 39.5 37.8 24, 1,010,749 847,059 847,059 492,210 58.1 108,187 13,404 94,783 68,907 672,134 680, 862 855,701 43.7 42.9 Oct. 1 1,041,620 874,130 - 19,003 855,127 476,174 55.7 106,327 9,862 96,465 71,025 625,025 654,133 866,091 41.1 41.7 N De o c v . . 2 3 2 2 2 1 1 1 1 1 5 3 7 0 3 0 2 9 6 8 2 5 9 . , , . , . . . , 1 1 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , , , 1 0 0 0 1 1 0 0 1 0 1 0 0 7 0 8 6 1 8 1 0 7 9 1 6 5 5 4 6 4 5 4 9 8 3 7 8 5 2 , , , , , , , , , , , , , 3 8 4 2 6 2 9 6 1 8 1 0 5 5 1 4 3 2 0 0 1 9 9 0 1 2 1 1 3 8 0 2 3 3 4 7 0 4 8 9 9 9 9 9 9 9 9 9 9 9 8 8 1 5 0 4 6 0 4 2 3 5 4 0 9 9 1 7 3 4 4 4 9 7 3 7 1 5 , . , , , , , , , , , , , 7 5 5 2 2 0 2 2 2 2 0 7 9 0 4 6 3 9 3 2 0 9 2 4 8 2 1 6 3 9 6 9 1 7 5 3 9 7 9 3 2 4 4 1 1 6 6 8 5 8 4 0 4 , , , , , , , , 4 7 0 0 0 7 1 7 0 0 0 0 0 0 5 5 0 0 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 9 9 8 2 0 8 4 8 7 0 1 5 8 4 5 1 6 7 4 8 9 0 4 3 1 5 7 4 0 , , , , , , , , , , , , , 1 2 2 2 2 7 2 2 0 2 5 9 6 0 2 0 4 6 2 9 3 4 9 7 3 3 1 1 7 6 3 3 6 9 9 5 9 7 9 4 4 4 5 4 4 4 5 5 5 5 4 4 6 6 2 1 4 4 6 0 0 6 1 8 2 1 4 4 3 5 1 5 9 0 9 5 2 1 , , , , , , , , , , , , , 0 2 9 9 6 6 6 4 3 0 9 1 9 1 4 4 2 2 5 4 0 8 2 4 8 3 1 3 9 6 3 8 5 3 3 7 7 3 0 4 5 5 5 5 5 4 5 5 4 4 5 5 5 0 4 9 4 2 2 2 4 5 8 1 1 . . . . . . . . . . . . . 9 8 7 3 0 0 8 4 4 7 5 5 0 1 1 1 1 1 1 1 1 1 9 9 9 9 0 1 0 1 0 1 1 1 0 7 7 6 9 2 3 3 0 0 1 2 6 1 , , , , , , , , , , , , , 8 5 7 2 2 3 6 6 8 8 6 9 5 6 3 4 7 6 2 1 5 2 4 0 3 6 9 6 6 4 2 1 9 4 2 2 8 5 5 2 2 1 1 1 1 1 1 6 9 6 8 7 6 4 4 5 3 9 7 4 , , , , , , , , , , , , , 9 9 9 9 3 3 8 8 7 3 7 2 3 1 1 1 2 8 0 3 7 3 8 6 9 5 7 7 7 3 5 3 0 6 4 2 9 8 2 1 9 7 9 9 9 8 9 9 7 8 8 8 0 2 6 3 7 2 8 1 9 5 7 1 9 9 , , , , , , , , , , , , , 8 8 5 8 5 3 7 6 3 9 7 9 9 9 2 4 9 5 6 5 8 2 8 2 9 0 9 9 6 9 7 4 2 2 2 4 4 0 2 1 7 6 6 7 6 6 7 7 7 8 8 6 2 8 5 3 7 9 2 9 0 3 3 1 1 1 , , , , , , , , , , , , , 5 6 7 7 1 2 6 9 1 4 6 0 2 6 4 5 2 9 5 7 7 8 7 3 7 1 6 6 9 3 9 4 4 6 4 0 8 0 0 6 6 6 6 5 6 5 5 6 6 5 5 5 1 8 0 1 0 1 9 0 8 1 9 9 8 0 5 9 5 8 2 7 6 4 8 0 7 2 , , , , , , , , , , , , , 4 8 9 2 0 5 6 8 4 2 8 8 5 2 6 0 2 3 4 1 1 4 6 5 8 8 3 6 1 3 6 0 0 8 2 0 7 8 5 6 6 6 6 6 6 6 6 6 6 7 6 6 3 6 5 7 6 4 7 5 4 9 0 8 6 9 6 8 5 7 2 5 7 9 3 9 5 2 , , , , , , , , , , , , , 1 4 1 6 1 1 9 2 5 6 7 2 8 9 6 3 2 1 4 6 2 7 1 1 7 9 7 7 7 6 2 2 7 2 5 8 8 1 5 8 8 8 8 8 8 8 8 8 8 8 8 8 6 8 7 7 7 8 7 7 6 6 7 7 6 4 6 5 6 5 0 1 2 3 9 3 6 4 , , , , , , , , , , , , , 0 7 7 7 3 8 5 6 5 6 3 5 8 2 0 0 3 6 7 2 0 6 2 2 1 9 7 9 6 7 0 0 2 9 0 1 1 6 5 3 3 3 3 3 3 3 3 3 4 4 3 4 8 8 8 9 7 8 8 9 9 0 9 0 0 . . . . . . . . . . . . . 6 6 7 9 8 5 3 1 0 1 1 8 0 3 3 3 3 3 3 3 3 3 3 3 3 3 4 6 9 4 8 6 7 5 5 8 9 7 9 . . . . . . . . . . . . . 7 9 4 6 6 8 2 9 5 3 1 1 5 3 • 1 2 H T -4 k 1 Minus sign indicates amounts discounted for or purchased from other Federal Reserve Banks. 2 Adjusted percentages are calculated after increasing or reducing reserves held by the amount of accommodation extended to or received from other Federal RReeseservrve eB Baannkks.s. CO CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

398 ANNUAL REPORT FEDERAL RESERVE BOARD. FEDERALRESERVE BANK OF HEW YORK 1? HET DEPOSIT LIABILITY. FR. HOTE CIRCULATION CASH RESERVES. ANP RESERVE RATIOS. 1920. ?0 GO 50 B 40 30 2O 10 O RESERVE PERCEKTA6ES. ACTUAL •Am,AMUSTED'B\SE£n0TEBEl£W. wo i 1 1 1 1 1 1 1 1 1 1 1 1 loco 800 F.R. PIOTE CIRCULATION 1800 1800 1600 1600 MOO mo IZOO DEPOSITAnPF.RNOTELIABlUTIES;>b, AM)TOTAL RESERVES, "O: JAM, FEB. MAR\APR, AW JUHE JULY AUG SEPT. OCT. NOV. DEC. •Adjusted jiercertfagesareca' 'uted, after increasing or reducing reserp&?keld> -bytkz awAo^tfacxmoda£wn extended do or received,i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.— Volume of paper discounted and bought. [In thousands of dollars.] Discounted paper. Purchased paper. Total discounted and purchased paper. Month. o S m b e G l c e i o u n g v r t a e e t d w i r o n a b n - r y s. B a a a c n n c c e k e p e s t r . - s' a a T c n r c c a e e d p s e t . - All other B a a a c n n c c e k e p e s t r . - s' ex D ch o a ll n a g r e. a a T c n r c c a e e d p s e t . - 1920 1919 1918 1917 January. 3 066 096 10,701 6 335 370 919 150,028 1,506 1 532 607,117 3 543,642 379,152 3,204 d February 3,369,071 3,586 4,456 421,205 171,901 2,865 1,449 3,974,533 2,724,123 359,772 22,168 March 2 895 562 10,994 7,365 842 039 158,207 3,842 2 446 920, 455 9684,982 397 193 4,826 April 2,452,346 13,220 3,155 697,137 90,003 695 3,046 3,259,602 2,739,661 1,518,634 12,127 Mav 2 227 110 4,967 4,261 944 705 155,329 2,173 1 608 340,153 4,127,791 9242 523 35 385 a June 2 419,799 2,065 2,143 1,001,116 132, 722 4,306 23,541 3j585,692 210,252 ?,,330,252 636,225 July 2 676 440 3,534 2,113 1,362 383 105,077 1,253 9 410 4,160,210 4 118,594 1997 905 287 379 August. 2 940,516 1,831 4,215 2,145,085 116,140 4,245 12,122 5224,154 593,613 9,397,949 65,537 September 2 271 608 2 244 3,989 2 134 552 105, 538 4,529 1 662 4,524,122 3,560,161 009 391 381,979 October 2,535.542 5,684 3,673 2,369, 387 136,620 7,410 1,254 059,570 As617,486 3818,873 2,433,200 November 2,453^928 6,019 2,792 2,625, 638 134,664 7,380 956 5 231,377 4618,816 3048,468 2,725,063 December r 2,792,951 5,809 1,758 3,407,384 131,994 8,634 1,243 6,349,773 4,091,769 3980,924 369,148 Total: 1920 32 100 969 70 654 46,255 18 321,550 1,588,223 48,838 60,269 5?,236,758 1919 43660,890 1918 ?,5481,036 1917 i 6,976,241 I Kj O 1 Includes $19,659,207 of acceptances purchased from the Federal Reserve Bank of Boston. W Co CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 4.—Earnings and expenses. O o 1920 1919 1918 1917 EARNINGS Discounted bills $49, 839,183 $29,935,911 $17,736,261 $2,455,533 Purchased bills 8,323,050 3,326, 839 5,411, 821 1,843, 325 United States securities 1,975,649 1,888, 497 1,561, 839 378,668 Deficient reserve penalties (including interest) 141,664 36, 405 27,192 18,565 Sundry profits 245, 775 144, 760 577,623 152,200 Total earnings 60,525,321 35,332,412 25,314,736 4,848,291 CyRRENT EXPENSES. Expense of operation: Assessments, account expenses Federal Reserve Board 221,868 181,875 100,876 50,252 ^ F G e o d v e e r r a n l o A rs d ' v c i o s n o f r e y r e C nc o e u s n c ( i i l n ( c f l e u e d s i n a g n d t r t a r v a e v l e i l n i g n g e x e p x e p n e s n e s s e ) s) 1,2 2 0 7 0 0 1,1 3 5 1 0 6 1,65 2 0 8 650 o Federal Reserve Agents' conferences (including traveling expenses) 139 113 552 # Salaries- 110 H Bank officers 383,760 294,795 189,901 129,247 2 Clerical staff ;, 479, 270 1,982, 807 1,082,719 228,485 g Special officers and watchmen 166, 449 61, 208 25,854 11,017 2 All other 199, 213 781, 297 29,534 g Directors' fees 27, 525 24,345 19,565 13,040 g. Traveling expenses 4,651 3,385 1,262 1,344 p Officers' and clerks' traveling expenses 23,743 29,015 4,519 2,605 _ Legal fees 9,323 11, 250 3,017 Rent 301, 797 290,243 139,008 55,551 Taxes and fire insurance 3,328 2,423 Telephones 32, 934 32,490 13,540 6,464 Telegraph 49,045 33,235 19, 514 3,216 Postage 114,779 116,072 99,440 17,374 Expressage 3,956 54,395 47,204 12,907 Insurance and premiums on fidelity bonds 26,283 98, 817 32,871 4,994 Light, heat, and power 3,077 2,859 6,997 o Printing and stationery 270,383 236,653 137,960 35,067 Repairs and alterations 55,623 130, 718 42,146 1,039 Cost of currency shipments to and from member and nonmember banks 199, 478 103,905 All other 204,161 142, 251 176,198 100,830 Total expenses of operation 5,782, 204 4,613,220 2,146, 805 704, 278 Cost of Federal Reserve currency (including expressage, insurance) 648, 393 642, 430 335, 044 343, 765 Miscellaneous charges, account note issues 159, 766 105,167 27, 921 15, 010 Taxes on Federal Reserve bank note circulation 207,402 169, 514 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Furniture and equipment 201,490 204,014 170,933 Disbursements of transit department in excess of net service charges received. 66,283 Total current expenses., 6,999,255 5,734,345 2,680,703 1,129,336 PROFIT AND LOSS ACCOUNT. Earnings 60, 525,321 35, 332,412 25,314,736 4, 848,291 6, 999, 255 5,734,345 2,680, 703 1,129,336 Current expenses Current net earnings 53,526,066 29,598,067 22,634,033 3,718,955 Additions to current net earnings on account of— Special reserves previously set aside 200,000 Assessment account Federal Reserve Board for expenses previously charged to profit and loss. 168,682 All other 6,050 31,096 132, 059 173, 718 Total. 53,900, 798 29,629,163 22,766,092 3,892,673 g Deductions from current net earnings on account of— 8 Bank premises 285,677 900,032 803, 800 Reserve for depreciation United States securities 25, 299 s Special reserves 456,165 525, 741 "2997375 All other 5,527 75, 089 445,248 Assessment account expenses Federal Reserve Board, January-June, 1920.. 168, 682 Q Total deductions 772,668 1,669,544 1,103,175 651,128 Net earnings available for dividends, surplus, and franchise tax 53,128,130 27,959, 619 21,662, 917 3,241, 545 Dividends paid 1,477, 096 1,291, 047 1,195, 026 1,942,819 Transferred to surplus fund 112,332, 523 23,964,678 2 20,467, 891 649,363 Franchise tax paid United States Government 39,318,511 2, 703, 894 649,363 1 Includes $1,000,000 set aside as a general reserve. 1*4 2 Includes $12,795,215 reserve for franchise tax, transferred to surplus in March, 1919. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 5.—Currency receipts from and shipments to member and nonmember banks. Receipts. Shipments. Total receipts. Total shipments. Month. From From non- To member To nonm b e a m nk b s e . r m b e a m nk b s e . r banks. m b e a m nk b s e . r 1920 1919 1918 1917 1920 1919 1918 1917 January $181, 248,463 $14, 806, 389 $113,486, 525 $4,955,930 $196,054, 852 $173,022,018 $104,457,917 $55,966,116 $118,442,455 $84,177,000 $98,620,600 $83,318, 500 February 113,017,640 7, 586, 403 174,462, 000 7, 792,000 120,604,043 90, 711,068 43,610,263 47,625, 517 182, 254, 000 97,106, 000 103,664, 300 151,305, 500 March 148, 632, 435 6, 493, 887 177,281,000 2,632, 000 155,126, 322 94,967, 955 41,993, 448 74*. 368, 751 179, 913. 000 139,214, 000 198,279, 900 159,519,000 April 152, 416, 411 6,165, 585 191, 394, 561 5, 778, 070 158, 581, 996 121, 521, 898 50,947, 636 62,179,914 197,172,631 128, 419, 000 113, 888, 600 122,973,000 M Ju a n v e 1 1 4 6 5 8 , , 4 0 5 9 7 4 , , 1 9 6 9 0 0 1 1 0 1, , 4 4 8 72 7 , , 7 5 0 3 8 1 1 1 6 7 6 2 , , 0 9 8 0 8 7 , , 4 3 7 0 6 0 3 2 , , 9 5 0 4 6 4 , , 0 7 0 0 0 0 1 1 5 7 5 9 , , 5 9 8 3 1 0 , , 6 6 9 9 1 8 1 14 3 2 7 , , 2 2 5 9 5 3 , , 9 41 8 6 9 5 7 9 8 , , 6 4 6 7 8 1, , 4 6 9 0 7 8 1 3 3 9 0 , , 8 2 1 0 7 0 , , 4 0 7 7 6 3 1 1 6 7 9 5 , , 6 81 3 3 3 , , 1 3 7 0 6 0 2 1 0 3 4 7 , , 0 6 3 3 6 5 , , 0 0 0 0 0 0 1 1 0 3 5 1 , , 3 1 8 5 2 1 , , 3 6 0 0 0 0 1 1 8 9 2 0 , , 3 6 8 4 9 5 , , 0 0 0 0 0 0 n July 197,691, 832 8, 294, 693 160, 525, 205 4,177, 000 205, 986, 525 156,222, 645 78,012, 917 96, 815, 803 164, 702, 205 195, 979,000 123,036, 800 92,396, 500 August 171,696,862 15, 653, 078 152,142,100 3, 522,600 187,349, 940 135,234, 802 70, 704, 642 106, 495,210 155,664, 700 157,341,000 103, 908, 500 110,010, 500 September 179, 259, 621 27, 214, 555 179, 455, 000 2, 817, 000 206,474,176 139,255, 009 68,062, 573 85, 292, 085 182,272,000 138,395, 000 102, 060, 000 86,467,000 o October 178, 344, 868 10,499, 395 177, 568, 000 3,962, 000 188, 844, 263 157, 523, 946 98, 490, 944 117,215,473 181, 530, 000 150,323,000 100,659,100 76, 896, 500 November.... 206, 990,159 14, 599, 618 165,617,500 7,308, 750 221, 589, 777 127,139, 007 85,467,694 87, 627,115 172, 926, 250 170, 904, 000 78, 762, 992 88, 727, 000 December 242, 827, 484 17,190, 000 208, 053, 801 5, 367, 711 260, 017, 484 179,009, 046 115, 923,114 58, 439, 751 213,421,512 230, 942, 000 118, 847, 500 99,602, 000 Total 2,085, 677, 925 150, 463, 842 2,038, 981,468 54, 763, 761 2,236,141, 767 |l, 654,156, 799 895, 811,253 962, 043,284 2,093, 745,229 1, 834, 471,000 1, 376,262,192 1, 444,249, 500 W O > Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 6.—Operations of check clearing and collection department. [Amounts in thousands of dollars.] Items drawn on banks in own district. Total.i Items drawn on Items forwarded Month. Lo a R c n e a d s t e e d rv i b e n r F a e B n d a e c n r h a k l Lo F B c e a a d te e n d r k a l R o a e u s t n e s r d i v d e e U T n r i e te a d su S re t r a t o e f s. an to d R e o th s t e h e r i e v r r e b F r B e a a d n n e c k r h a s e l s. 1919 1918 1917 cities. branch cities. Number. Amount. Number. Amount. Number. Amount. Number. Amount. Number. Amount. Number. Amount. Number. Amount. Number. Amount. January 936,041 2,451,325 3,814,224 2,090,512 795,127 256,675 1,047,990 614,607 6,593,382 5,413,119 6,752,463 4,521,888 1,733,295 2,821,800 1,242,582 723,630 February.... 777,796 1,846,525 3,109,357 1,721,496 661,189 199,673 953,641 528,659 5,501,983 4,296,353 5,699,290 3,496,298 1,538,041 2,514,808 1,095,585 667,596 March 1,257,290 2,600,344 4,051,412 1,675,624 723,200 252,075 1,194,483 646,897 5,174,940 6,441,101 4,096,073 1,933,035 2,943,435 1,259,101 859,071 April 1,226,093 2,330,032 3,929,028 1,452,045 843,991 273,762 1,199,434 687,550 7,198! 5464,743,389 6,311,006 4,189,028 2,158,060 3,371,287 1,353,002 1,099,774 May 1,090,249 2,225, 926 3,846,118 1,358,803 722,226 164,052 1,135,041 649,116 6,793' 6344,397,897 6,056,280 4,497,r" 2,265,035 3,408,484 1,582,578 1,420,578 June 1,153, 999 2,578,186 4,293, 722 1,472,177 871,678 481,186 1,130,286 676,476 7,449, 6855,208, 0255,746,428 4,938, 2,575, 8273,378,161 1,636, 6191,677,176 July 1,213,532 2,178, 213 4,240, 459 1,405,784 824, 010 122,552 1,041,842 663,681 7,319, 8434,370,230 5,863,754 4,718,1 3,069,766 3,571,615 1,600,881 1,565,703 August 1,122,941 2,150,369 3,960, 970 1,305,305 934,424 191,975 996,067 615,730 7,014, 4024,263,379 6,152,104 4,235,894 3,206,169 3,683,859 1,681,936 1,588,388 September... 1,169, 641 2, 244, 638 4,196, 276 1,382,725 1,035,527 161,686 1,076,944 633,188 7,478,3884,422,237 5,817,203 5,367,077 3,163, 3783,834,392 1,673,199 1,499,433 October 1,287,260 2,349,038 4,445,606 1,434,559 1,035,109 94,423 1,173,332 718,772 7,941,307 4,596,792 6,448,743 5,372,518 4,392,277 4,921,461 1,977,710 2,654,483 November.. . 1,204,479 2,065,148 4,387,005 1,308,932 1,059,146 124,659 1,144,073 626,695 7,794,703 4,125,434 5,969,517 5,059,211 4,495,353 4,228,936 2,068,185 3,212,533 December 1,312,002 2,288,161 4,903,713 1,297,102 1,346,087 143,213 1,162,364 584,839 8,724,166 4,313,315 6,808,383 5,830,606 4,819,365 3,903,595 2,236,801 3,136,162 Total, 1920. :, 751,323 27,307,905 49,177,890 17,905,064J10,851,714 2,465,93113,255,497 7,646,210 87,036,424 55,325,110 74,066,272 56,322,042 35,349,601 42,581,833 19,408,179 20,104,527 1 Exclusive of duplications on account of items handled by both parent bank and branch. o Co Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3—PHILADELPHIA. RICHARD L. AUSTIN, Chairman and Federal Reserve Agent. INTRODUCTION. A marked change took place in the Third Federal Reserve District during the year 1920. During the war period the large amount of Government securities subscribed for and allotted to this district and the extraordinary business activity incident to the war resulted in demands on our member banks for credit in excess of their capacity to supply them. Borrowings of member banks from this bank were heavy, which made it necessary, in order to maintain its reserves, to rediscount freely with other Federal Reserve Banks for a period of 18 months ending with May 1920, when the last of its rediscounts matured. Since September 7, it has been rediscounting for other Federal Reserve Banks. The borrowings of the members reached their maximum of $255,551,000 on February 19, 1920, from which point they continued to decline until they reached the low point for the year of $134,645,000 on December 15. Since then the borrowings have increased and at the close of the year they amounted to $155,485,000. Government borrowings began to decrease in the spring, and with the falling off in Government operations the condition of this bank began to improve. This improvement was accelerated by the falling off in business activity and the smaller borrowings of member banks. The operations of business favored the movement of gold to this district, resulting in an increase in the gold holdings of this bank by $63,000,000, or 45 per cent in the course of the year. According to the reports on business conditions in this district, received by us during the closing months of 1919, apparently few years opened with brighter business prospects than 1920. Labor was fully employed at the highest wages probably ever known, manufacturing plants were being operated at the greatest possible limit, supplies of goods were small, prices were continually advancing, the public was buying lavishly, and it was generally reported that goods were being consumed as fast as produced. The general opinion was that such business conditions would continue for at least 6 months. These conditions, which had been developing for some months, undoubtedly fostered overbuying and speculation in all kinds of commodities. The advancing costs of materials and wages increased greatly the amount of capital required to conduct business, and the banks were called upon to expand their lines of credit to customers. This only could be done through increased borrowings from the Federal Reserve Bank. However, as it had been a borrower for over a year from other Federal Reserve Banks., 404 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTEICT NO. 3—PHILADELPHIA. 405 it was hardly in a position to expand its loans, and in order to protect itself the rates of discount were raised on January 23 to 6 per cent for commercial paper of all maturities and to 5^ per cent for paper secured by United States bonds and notes. Commercial paper then was selling at a rate sufficient to afford an attractive profit to banks through buying such paper and rediscounting at the Federal Reserve Bank. It was recognized that if this were done the discount rates would have to be raised still higher, which would have put an unnecessary burden upon legitimate borrowing. To avoid any such misuse of the discount privilege, the attention of the member banks was called to the bank's situation; the intention of the bank to extend all reasonable accommodation for legitimate purposes was made clear; and the member banks were asked to cooperate with the bank in carrying out its policy, by refraining from making unnecessary loans, and by making every effort to reduce their borrowings from this bank. The banks responded most heartily, especially in the matter of reducing their borrowings on Government bonds, with the result that some months before the end of the year the reserve position of this bank was so greatly improved that it was one of the strongest in the system. The first adverse change in business conditions became apparent early in the spring, coincident with the financial and economic disturbance in Japan, and the collapse of the great speculation in silk in that country. A decrease in the demand for wool became noticeable about this time and lower prices for all kinds of hides which ultimately affected leather, were reported also. A short time later the feeling was manifest upon the part of the public that most prices for retail goods were too high and a cessation of buying began and continued practically through the balance of the year. The first noticeable break in retail prices occurred when one of the largest retail dealers in this city announced, the latter part of April, a reduction of 20 per cent in all his goods. Thereafter retail stores generally began offering goods at concessions and the decline in retail prices continued. The falling off in retail trade reacted upon jobbers and manufacturers, resulting almost in stagnation of business in some lines and notable reductions in manufacturers7 prices. As goods became unsalable, cancellations of orders took place to a heretofore unheard-of extent, contracts were repudiated, and many buyers declined to receive goods, forcing their return to the manufacturers or jobbers in large quantities. During the first half of the year transportation conditions were a great obstacle to productive and distributive processes and added to the acuteness of the credit situation by tying up large amounts of capital in commodities in transit. On account of the railroad congestion and-much speculative buying for shipment abroad, there was a scarcity of coal, and prices advanced to two or three times their normal. Industrial plants were seriously embarrassed in their operations through inability to secure adequate supplies of fuel, and manufacturing costs were considerably increased. A decided improvement in railroad conditions was not effected until September and production could have been increased then, but it was at that time that the more serious effects of price reductions and curtailed buying Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

406 ANNUAL REPORT FEDERAL RESERVE BOARD. were being felt, and, instead of increasing operations, many factories were being closed or put on part time. The curtailment in manufacturing operations resulted in a large amount of unemployment and reductions in wages. In the latter part of the year some mills started up with reductions in wages of 15 to 22 per cent, and it is reported that the wages of some other classes of labor also have been materially lowered. The figures submitted by R. G. Dun & Co. show that there were 419 failures with liabilities of $16,888,034 in the Third Federal Reserve District during 1920. The first seven months were marked by a small amount, but the latter part of the year showed large increases. In 1919 there were 360 failures, but the liabilities were only $6,863,575. SUMMARY OF SERVICES TO MEMBER BANKS. In reviewing the services which have been rendered to member banks, it must be remembered that the primary function of the Federal Reserve System is service. Every operation is carried on with this point in view. Representatives of this bank who visit the banks of the district make it their duty to explain fully and clearly just what its facilities are and how they should be used. The principal service to member banks is the rediscounting of paper. During the year 1920 a total of $5,820,258,000 of notes offered to us was rediscounted. Though this turnover is not equal to that of 1919, the average daily holdings of rediscounted bills, due to longer maturities, were nearly equal to last year, the average for the year just closed being $190,122,000, as compared with $193,194,000 in 1919 and $75,556,000 in 1918. May, 1920, was marked by the highest average of any month thus far, $212,324,000. In December the average was $166,911,000. Bills bought in the open market did not constitute an important part of the year's operations, though considerable quantities of acceptances were purchased from other Federal Reserve Banks during the last half of the year. The total amount of acceptances purchased was $76,380,000, and the largest amount held at any one time was $19,880,000 on October 15. On June 30 the holdings of this class of paper were $1,425,000, the low point for the year. In caring for the currency needs of the district, a total of $643,- 266,000 in notes was paid over the counter, or shipped to member banks without any expense to them, as compared with $389,269,000 in 1919. Receipts of currency from all banks in the two years were as follows: 1920, $570,093,000; 1919, $444,475,000. The circulation of Federal Reserve notes decreased during the first few weeks of 1920, but this trend was soon reversed and from the end of January the circulation increased with minor fluctuations up to the high point of $283,740,000 reached on December 23. A large amount of currency was returned during the last few days of the year, following the close of the holiday trade. The check clearing facilities of the bank were used more heavily than in 1919, and the number of checks handled in each month surpassed the corresponding months of that year. A total of 47,298,000 checks, to an amount of $16,327,000,000 were handled in 1920, as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3 PHILADELPHIA. 407 compared with 34,886,000 checks, amounting to $13,843,000,000 in 1919. The collection department (handling noncash items payable at a future date) also reported a heavy increase in business, and 92,651 items were received for collection, as compared with 35,292 in 1919. Shipments of canceled United States coupons this year amounted to $62,519,000, and to $47,063,000 in the previous year. As a result of the operations through the gold settlement fund the gold holdings of this bank were increased by $18,673,000 in 1920, whereas in 1919 there was a decrease of $5,733,000. Telegraphic transfers of funds showed little increase, though the number of banks making use of this facility was slightly larger than in the previous year. Exclusive of amounts transferred to New York, wnicn up to November were handled over the telephone, transfers by telegraph were made to the amount of $625,338,000. STATEMENT OF CONDITION. The outstanding features of the bank statement at the end of 1920, when compared with previous years, are the increases in the gold holdings and the amount of Federal Reserve notes in circulation and the decline in the borrowings by member banks. Net deposits show little change. The decrease in bills discounted reflects the downward tendency which had been under way since early in the year. At the close of the previous year the amount of bills discounted held was $209,855,000. At that time, however, this bank had rediscounted with other Federal Reserve Banks member banks' bills to the amount of $27,445,000, so that the total borrowings from this bank by our member banks was $237,300,000. Bills discounted at the close of this year amounted to $172,383,000. As this included, however, $16,898,000 of bills discounted for other Federal Reserve Banks, the total borrowings of the member banks was $155,485,000, showing a decrease in the borrowings of the member banks of $81,815,000, or 34 per cent. A comparative statement of the condition of this bank at the end of the years 1920, 1919, 1918, and 1917 is shown in Schedule 1. EARNINGS AND EXPENSES. The average daily earning assets of this bank during 1920 were $233,887,000, as compared with $218,038,000 in 1919. This increase, together with the higher rates of return on bills rediscounted and bills purchased, resulted in larger earnings for the year. Comparative rates of return on bills, etc., are given below: 1919 Bills redisoounted Bills purchased United States securities The total earnings for the year were $11,848,551.40, of which 88 per cent was earned on bills rediscounted, 5 per cent on purchased bills, 6 per cent on United States securities, and 1 per cent was de- 45525°—21 27 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

408 ANNUAL REPORT FEDERAL RESERVE BOARD. rived from sundry sources. Current expenses amounted to $2,176,- 273.63, leaving net earnings of $9,672,277.77. From the net earnings must be deducted $607,161.46, net debit to profit and loss, giving $9,065,116.31 as the earnings available for dividend, surplus, and franchise tax, or 108 per cent on the average capital for the year. This compares with 89 per cent in 1919 and 46 per cent in 1918. After providing for dividends for the year at the rate of 6 per cent, there was transferred, as provided by the Federal Reserve Act, $8,204,774.54 to the surplus fund, and $363,662.54 was paid to the Government as a franchise tax. The profit and loss statement for 1920 is shown in Schedule 4. RESERVE POSITION. For the portion of the year prior to May 10 this bank was a borrower from other Federal Reserve Banks, and its reserve was maintained at about 40 per cent. After that time there was a large increase in gold holdings and a steady improvement in the reserve position. The largest amount of gold held was $214,743,000 on December 13. The highest percentage of reserve shown was 57.07 per cent. During the last four months of the year reserves were reduced by rediscounting for other Federal Reserve Banks; had it not been for this the bank would have shown the maximum reserve of 64.7 per cent on October 11. DISCOUNT RATES. At the close of the year 1919 the established rates of discount on the principal classes of paper were as follows: Per cent. Secured by bonds and notes of the United States 4| Commercial paper (all maturities) 4f Secured by 4J per cent certificates of indebtedness A.\ Secured by 4J per cent certificates of indebtedness 4^ On January 2 the rate on paper secured by United States certificates of indebtedness was raised to 4|- per cent, and on January 23 the rate on commercial paper of all maturities was raised to 6 per cent, and the rate on loans secured by bonds and notes of the United States to 5i per cent. On February 26 the minimum rate for loans secured by certificates was made 5 per cent, and beginning with April 22, following the issue of certificates bearing a rate of interest in excess of 5 per cent, the discount rate on paper so secured was made the same as the rate of the certificate but not less than 5 per cent. On January 23 a rate of 5 per cent was established for the discount of indorsed bankers' acceptances; the rate on this class of paper was advanced to 5| per cent on April 8 and again to 6 per cent on October 20. LOAN AND DISCOUNT OPERATIONS. Loan and discount operations of this bank during the early months of 1920 were dominated by the unusual demands which the business interests of the district were making upon the banks. As the year Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3—PHILADELPHIA. 409 progressed the borrowings declined, in keeping with the smaller commercial needs of the district. The total turnover of bills for the year was much smaller, but this can not be taken as indicative of decreased earning assets, as the maturities of the bills were longer in 1920 than in the previous year, as is indicated by the daily average of earning assets, which was $233,887,000 this year, as compared with $218,038,000 last year. A moderate amount of bills were bought in the open market, the total of such transactions being $41,232,000, as compared with $14,048,000 in 1919, and during the last half of the year a considerable quantity of acceptances was purchased from other Federal Reserve Banks to strengthen their reserve position. The total of all acceptances purchased from both sources was $76,380,000. The following table, giving the average daily amounts of the total earning assets during the year 1920, with comparative figures for 1919 and 1918, shows the trend of the holdings of this bank: 1920 1919 1918 lanuary $229,284,000 $191,744,000 $56,592,000 February 243,612,000 200,562,000 53,576,000 March 2^6,229,000 204,604,000 58,196,000 April 243,502,000 208,440,000 63,680,000 May 247,113,000 213,595,000 69,155,000 June 241,705,000 216,680,000 77,315,000 July 225,736,000 214,600,000 88,628,000 August 2% 678,000 221,288,000 102,304,000 September 227,742,000 226,759,000 114,640,000 October 225,147,000 235,140,000 138,135,000 November 230,358,000 238,126,000 189,486,000 December 213,420,000 243,809,000 197,818,000 Average for year. 233,887,000 218,038,000 101,067,000 The average amount of earning assets during the months of March and May, 1920, was larger than during any month of 1919. Rediscounts with other Federal Reserve Banks amounted to $371,600,000. The last of these bills matured May 10. By September 7 the bank's position had so improved that it was able to rediscount for other Federal Reserve Banks, with the result that by the close of the year $144,578,000 of such bills had been rediscounted for other Federal Reserve Banks, most of which are located in the agricultural sections of the country. REDISCOUNTED PAPER. At the end of the year the total of the rediscounted paper on hand was $172,383,000, as compared with $209,855,000 at the end of 1919 and $178,819,000 at the end of 1918. Holdings of this class of paper increased during the early months of the year and reached the peak of $218,169,000 on May 15. From that date there has been a more or less continual decline to the low of $158,477,000 on November 30, after which small increases occurred. To secure figures which are indicative of the borrowings of member banks, it is necessary to eliminate rediscount transactions with other Federal Reserve Banks. This has been done in the table following, which shows the borrowings of our members on the last day of 1919 and at the end of each month in 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

410 ANNUAL REPORT FEDERAL RESERVE BOARD. Secured by- United Year and month. States All other. Total. securities. 1919—December. $201,894,000 $35,455,000 $237,349,000 1920—January... 190,826,000 36,765,000 227,591,000 February.. 203,033,000 45,731,000. 248,764,000 March 198,037,000 42,965,000 241,002,000 April 202,530,000 27,373,000 229,903,000 May 188,258,000 27,354,000 215,612,000 June 160,342,000 37,348,000 197,690,000 July 143,161,000 38,541,000 181,702,000 August 136,557,000 37,890,000 174,447,000 September 119,424,000 34,506,000 153,930,000 October... 113,455,000 38,587,000 152,042,000 November. 115,819,000 32,849,000 148,668,000 December. 114,066,000 41,417,000 155,483,000 During the year borrowings of member banks secured by Government securities decreased $87,828,000, or 43 per cent; other rediscounts increased $5,962,000, or 17 per cent; and total borrowings decreased $81,866,000, or 34 per cent. At the close of the past year, Government secured borrowings constituted only 73 per cent of the total, whereas the percentage was 85 per cent at the end of 1919. PURCHASED PAPER. Purchases of open-market paper amounted to $76,380,100, largely made during the last half of the year, of w^hich $35,147,000 of bankers' acceptances were purchased from other Federal Reserve Banks. Acceptances in the foreign trade made up the bulk of this paper, together with much smaller amounts in the domestic trade and dollar exchange bills. No trade acceptances were purchased, though a small amount was held over from 1919. The holdings of the various classes of paper on the last Fridays of 1920 and 1919 are given herewith: 1920 1919 Bankers' acceptances: In foreign trade... $10,167,152.89 $3,555,043.21 In domestic trade. 1,376,234.48 1,122,711.63 Dollar exchange bills.. 1,350,000.00 Trade acceptances 20,000.00 Total. 12,893,387.37 4,697,754.84 Our member banks have been encouraged to invest in bankers7 bills as affording a high grade of security and a most liquid asset for the banks, and for the purpose of developing a market for them. During the latter part of the year the banks of the district purchased larger amounts of these bills than at any previous time. FEDERAL RESERVE NOTES. As usual, during the first weeks of the year, there was a return of the Federal Reserve notes issued on account of the Christmas trade. Up to January 20, $17,290,000 in notes were returned, reducing the circulation to the minimum for the year of $219,760,000. After that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3 PHILADELPHIA. 411 date the circulation gained steadily and by February 26 had passed the high point of the year 1919. This increase continued, with minor fluctuations, to $278,736,000 on October 14. A small recession followed, but the demands of the holiday trade made themselves felt and the peak of the year was reached on December 23, $283,740,000. FEDERAL RESERVE BANK NOTES. Federal Reserve Bank notes outstanding at the beginning of the year amounted to $29,052,000; new notes issued during the year amounted to $24,796,000, and notes redeemed to $31,056,000, leaving outstanding at the end of the year $22,792,000. Due to the operations of the Bureau of Engraving and Printing, United States legal tender notes of the smallest denominations took the place to some extent of the Federal Reserve Bank notes. The peak of the notes in actual circulation was $22,708,887 on December 18, which compares with a high point of $29,143,707 on December 22, 1919. MONEY DEPARTMENT. January and June were the only months of the year in which the currency deposited exceeded the amounts paid out. The other months showed an excess of amounts paid out to a greater or less degree. In February this excess was particularly heavy. The following table shows the total receipts and payments during 1920 and 1919: 1920 1919 Receipts.. $570,093,449 $444,475,010 Payments. 643,266,382 389,269,059 The note-counting force averaged 29 persons during the year and handled a total of 71,673,499 pieces of money, the largest monthly total being 7,195,761 pieces in October, or an average of 287,830 pieces on each working day in that month. CLEARINGS AND COLLECTIONS. Transit department operations.—During 1919 all of the banking institutions in this district were brought into the par collection system, and as new banks were organized they have been added to it. At the end of 1920 the 698 member and 439 nonmember banking nstitutions of this district were all on the par list, and in the country as a whole approximately 94 per cent of all the banks had agreed to remit at par for checks drawn upon them. The banks which do not remit at par are all located in the Southern States. The total number of checks (exclusive of Government checks) handled during the year by this department was 47,298,471 to a value of $16,327,199,000, as compared with 34,886,768 checks totaling $13,843,744,000 in 1919. The average daily number of items was 157,230, compared with 116,289 in 1919. The largest number handled in any one day was 254,850 on October 14. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 ANNUAL REPORT FEDERAL RESERVE BOARD. Gold settlement fund.—During the year payments made by this bank through the gold settlement fund to other Federal Reserve Banks totaled $8,931,016,633, and amounts received by it were $8,949,- 690,155, leaving a net balance in its favor of $18,673,522. This favorable balance was largely accumulated during the latter part of the year and accounts in part for the improvement in the reserve position of the bank. In 1919 payments made by this bank through the gold settlement fund exceeded receipts by $5,733,000. Collection department.—The year has witnessed a great increase in the use of the facilities afforded by the collection department, which handles noncash items payable at a future date. The total number of the items handled in 1919 was 35,292, as compared with 92,651 in 1920 of a value of $233,309,000. The bulk of these items was collected at par, no charge being made by the Federal Reserve Bank for the service, unless one was made by the collecting bank, in which case it was passed on to the depositing bank. There is a charge of 15 cents for each item returned unpaid. During the year there was a slight but gradual increase in the percentage of items returned unpaid, and also in the number of items protested. Coupon department.—The payment of coupons of United States securities has expanded considerably during the past three years. The following table shows shipments of canceled coupons: Number. Amount. 1920 9,493,270 $62,519,070 1919 8,258,108 47,063,622 1918 2,728,361 11,735,022 Wire transfers of funds.—The wire transfer facilities offered by this bank have been used to a moderate extent by the member banks. A total of 9,832 messages were sent during 1920, transferring $625,- 338,000. This was an average of $2,030,000 daily. These figures are exclusive of sums transferred to New York, which were made over the telephone up to November, 1920. INTERNAL ORGANIZATION. At the meeting of the board of directors held March 3, Mr. George W. Norris, who was then Farm Loan Commissioner at Washington, was unanimously elected governor of the bank. Mr. Norris assumed office on April 5. No other changes have been made in the official staff during the year. The election for directors of this bank, which closed November 30, resulted in the reelection of Mr. Joseph Wayne, jr., of Philadelphia, by group 1, to serve as a class A director for a term of three years beginning January 1, 1921, and the reelection of Mr. Edwin S. Stuart, of Philadelphia, by group 2, to serve as a class B director for a term of three years beginning January 1,1921. Messrs. Wayne and Stuart were the only nominees in their respective classes. The Federal Reserve Board reappointed Mr. Richard L. Austin as a class C director and Federal Reserve Agent and chairman of the board of directors for a term of one year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3 PHILADELPHIA. 413 A general increase in the work of the bank in its various functions necessitated a larger staff of employees. The number increased from 638 on December 15, 1919, to 840 on December 15, 1920. Of this last total, 706 were employed in the regular work of the bank, and the remaining 134 were connected with the Liberty loan and other departments engaged in performing the duties as fiscal agent of the United States. STATE BANK MEMBERS. At the close of 1919, 38 State banks and trust companies were members of the system in this district. During the year 9 other institutions were added and two member trust companies consolidated, so that there were 46 member State institutions at the end of 1920. DEPARTMENT OF BANK EXAMINATION. During the year the department of bank examination participated in 42 examinations of member State banks and trust companies, 5 of which were independent examinations incident to applications for admission into the system, and 37 examinations were conducted in cooperation with the State banking departments of Pennsylvania, New Jersey, and Delaware. All the banks and trust companies examined cooperatively were members of the system with the exception of one bank which was an applicant for admission. The total banking resources of the institutions examined aggregated $210,- 741,000, in addition to which trust funds totaling $1,553,987,000 were examined by the department. In connection with the granting of fiduciary powers to national banks, this department has given assistance and advice in the installation of adequate systems in the trust departments of banks receiving such powers. SPECIAL POWERS FOR NATIONAL BANKS. During 1920 the Federal Reserve Board approved applications from 29 national banks in this district for the exercise of fiduciary powers. Of this number 22 were located in Pennsylvania, 6 in New Jersey, and 1 in Delaware; 27 banks were granted permission to exercise full powers and 2 were granted partial powers. The total number of banks haying these privileges is 123, scattered quite generally over the district. The table following shows the distribution of the total: Full powers, powers, Pennsylvania.. 96 New Jersey 22 Delaware 5 Total 87 36 123 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 ANNUAL REPORT FEDERAL RESERVE BOARD. The national banks have manifested but little interest in the power to accept up to 100 per cent of their combined capital and surplus, as allowed by the Federal Eeserve Act under the regulations of the Federal Reserve Board, and no applications regarding such powers have been received during the past two years. A total of 8 banks, all of which are located in Philadelphia, possess this right. FISCAL AGENCY OPERATIONS. The exchange of permanent bonds for temporary bonds, conversions of one issue into another, and denominational exchanges have been the chief activities in connection with the various issues of Liberty bonds and Victory notes. A total of 3,589,075 bonds and notes (both temporary and permanent) to a value of $680,533,650 was exchanged or converted during the year. The only issue of Liberty bonds for which permanent bonds were not exchanged was the fourth, arrangements for which were not perfected before the close of the year. Certificates of indebtedness.—The banks of the district have manifested a gratifying response to the offerings of the various issues of United States certificates of indebtedness during the year. The subscriptions received for each issue have been in excess of the quota of the district, and during the last four or five months the amounts allotted have been much less than the total of the subscriptions received. The total of the subscriptions to all certificates of indebtedness was $312,334,000, and the amount allotted was $264,323,000, distributed between tax and loan certificates as follows: Total Subscriptions subscriptions. allotted. Loan certificates $96,149,000 $80,722, 500 Tax certificates 216,185,000 183,600, 500 The total number of banks subscribing to these issues was 999, which was 87 per cent of the banks in the district. Redemptions of certificates through this bank during the year were $256,857,000. Government checks.—The Government check department handled a total of 1,918,816 checks, amounting to $528,703,755 in 1920. Incomplete records for 1919 make a full comparison with that year impossible, but during the last six months a total amount of $351,915,713 in Government checks was handled, which compares with $255,825,041 in the last half of 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3—PHILADELPHIA. 415 SCHEDULE 1.—Statement of condition. [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, Dec. 31, 1920. 1919. 1918. 1917. RESOURCES. Gold and gold certificates 6,087 1,194 1,051 19,064 Gold settlement fund—Federal Reserve Board. 50,353 31, 679 37, 412 32,101 Gold with foreign agencies 264 10, 506 408 3,675 Total gold held by bank 56,704 43, 379 38, 871 54,840 Gold with Federal Reservee agent. 138, 791 88,948 85, 583 63, 946 Gold redemption fund. 8,902 '8,448 7,900 1,500 Total gold reserves 204, 397 140, 775 132, 354 120, 286 Legal tender notes, silver, etc. 993 589 1,668 1,190 Total reserves. 205, 390 141,364 134,022 121, 476 Bills discounted: Secured by Government war obligations. 115, 647 174, 450 159, 764 19, 981 All other 56, 736 35, 405 19, 056 15, 931 Bills bought in open market 12, 689 5,177 3,011 18,390 Total bills on hand 185, 072 215, 032 181, 831 54,302 United States Government bonds 1,434 1,385 1,385 7,102 United States certificates of indebtedness. 30, 461 30, 687 10, 033 2,548 Municipal warrants 10 Total earning assets 216,967 247,104 193, 249 63,962 Bank premises 500 500 500 Uncollected items and other deductions from gross deposits 67, 749 92, 971 90, 853 *35,'7O9 5 per cent redemption fund against Federal Reserve bank notes. 1,300 1,475 475 All other resources 358 692 879 ""210 Total resources.. 492,264 484,106 419, 978 221, 357 LIABILITIES. Capital paid in. 8,485 7,884 7,562 6,142 Surplus 17, 010 8,805 1,304 7 Government deposits 5,189 5,039 4,833 Due to members—reserve account.. 111, 014 110, 541 99, 720 84,574 Deferred availability items 51, 324 75,633 65, 918 27,467 Other deposits 1,447 9,358 823 4,981 Total gross deposits 165, 007 200, 721 171, 500 121, 855 Federal Reserve notes in actual circulation 278, 321 237,051 229,112 92,977 Federal Reserve bank notes in circulation—net liability. 22, 601 28, 792 8,926 All other liabilities 840 853 1,574 383 Total liabilities. 492,264 484,106 419, 978 221,357 Ratio of total reserves to net deposit and Federal Reserve note liabilities combined—per cent 54 7 41.0 43.2 67.8 Ratio of gold reserves to Federal Reserve notes in circulation after setting aside 35 per cent against net deposit liabilities— per cent 61. € 43.7 46.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE. 2—Movement of principal asset and liability items during 1920. [Amounts in thousands of dollars.] Discounted bills. Purchased bills. Reserve percentages. discounted for member banks in this district. Date. ea T r o n t i a n l g T he o l t d a . l c R F B R o o e w e a u e t d s n h n i d e e t k e t r i h r e s v r s a - d e . l To A t . al. e b S r y e n c B m G u . r e o e n v d t - P ( e B r C + c A . en ) t . m i c n h P a a o r u s k p r e e e - d n t. R F B c o f e h e P a r t d s a o n u h e s e m k e r r e r - v r s a d e . l T he o l t d a . l U s S e t n t i c a e i u t t s e e r . i s d - c s a T e s r o h v t e a r s e l . - dep N o e s t its. n R c F o i t e e r i t c d s o e e u e s n r l r v . a i a n e - l Actual. jus A te d d - .1 3 war obli- O gations. W H Jan. 2. 245,642 208,495 25,664 234,159 199,398 85.2 5,177 31.970 140.216 109.740 232.160 41.0 33.5 9. 241,139 203,314 20,050 223,364 194,453 87.1 5,842 31^983 132,' 024 104^ 230 224' 322 40.2 34.1 16. 233,572 195,024 25,434 220,458 189,016 85.7 6,065 32,483 133,534 100,358 222.140 41.4 33.5 23. 239,035 198, 732 31,695 230,427 191,072 82.9 7,827 32.476 130,928 105, 549 220,261 40.2 30.4 30. 235, 611 195,140 32,790 227,930 192,062 84.3 7,825 32,646 131,103 100,295 222,802 40.6 30.4 Feb. 6. 237, 022 196,763 41,381 238,144 196,075 82.3 7,861 32,398 131,198 98,262 225, 836 40. 5 27.7 13. 245,816 200,299 47,945 248,244 202,330 81.5 7,194 38,323 136,093 99,267 238, 871 40.2 26.1 20. 239,183 199,783 45,819 245, 602 200,148 81.5 7,094 32.306 134,113 91,522 238, 059 40.7 26.8 27. 250,625 211,468 38,925 250,393 203,951 81.5 6,752 32,405 139,911 105,177 242, 540 40.2 29.0 Mar. 5. 245,640 206,894 28,669 235, 563 194, 678 82.6 6,396 32,350 138,131 99,259 242, 607 40.4 32.0 12. 245,615 207; 572 31,215 238, 787 193. 664 81.1 5,693 32,350 145, 948 107,208 244, 544 41.5 32.6 19. 244, 763 207,284 36, 565 243, 849 195; 222 80.1 5,491 31,988 141,134 104,249 242, 648 40.7 30.1 26. 244, 232 206, 700 35,555 212,255 198, 748 82.0 5,565 31,967 141,295 102,056 244, 579 40.8 30.5 Apr. 2. 246,654 208,729 29,363 238,092 197,236 4,960 32.965 143,266 102,352 249, 002 40.8 32.4 9. 245,706 205, 768 22,948 228, 716 191, 776 3,972 35.966 139, 547 99,077 248,332 40.2 33.6 W 16. 238.806 201, 314 29,500 230, 814 196, 856 85.3 3,416 34,076 138, 361 92,882 246,717 40.7 32.1 o 23. 244; 693 209,391 23,375 232, 766 199, 606 85.7 2,981 32,321 138, 853 100,508 245,238 40.2 33.4 30. 244,163 209,196 20,709 229,905 202,531 88.1 2,842 32,125 139,173 99,838 245, 443 40.3 34.3 May iI; 2 2 4 4 1 8 , , 3 8 2 8 6 6 2 2 0 1 6 4 , , 2 0 4 8 4 4 7,782 2 2 1 1 4 4 , , 0 02 S 6 4 1 1 8 90 9 , , 8 8 9 8 1 0 8 8 8 9 . . 7 2 2 2 , , 6 9 3 1 8 8 3 3 2 2 , , 1 1 6 6 4 4 1 1 3 4 7 0 , , 5 6 7 9 7 3 1 9 0 7 3 , , 0 2 2 8 5 3 2 24 4 7 4 , , 6 3 9 8 6 4 4 40 0 . . 1 3 3 4 8 0. . 1 0 21. 247,739 212,945 212,945 188,481 88.5 2,592 32,202 137, 892 102,398 244, 473 39.8 39.8 28. 248,353 213,976 213,976 187,447 87.6 2,070 32.307 140, 669 101,133 249,091 40.2 40.2 June 4. 249,400 214,958 214,958 186,209 86.6 2,227 32,215 145, 387 106,364 249, 225 40.9 40.9 11. 251,593 216,212 216,212 186, 537 86.3 2,052 33,329 137, 586 98, 897 250, 899 39.3 39.3 18. 235,363 200,144 200,144 170,471 85.2 1,926 33,293 139, 682 88, 382 247,287 41.6 41.6 25. 229,910 190,421 190,421 161,234 84.7 2,012 37.477 155, 671 97,360 248,785 45.0 45.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 2. 227,771 188,057 188,057 151,609 80.6 1,425 1,425 38,289 161,203 100,846 251,253 46.6 46.6 9. 231,012 186,421 186,421 146,759 78.7 1,415 10,014 11,429 33,162 162,862 101,310 252,418 46.0 48.9 16. 225,782 627 181,627 140,499 77.4 1,071 10,014 11,085 33,070 162,827 92/654 255, 772 46.7 49.6 23. 223,243 175' 045 175,045 139,845 79.9 1,496 10,014 11,510 36,688 164,959 94,662 253,106 47.4 50.3 30. 232,756 180,608 180,608 142,978 79.1 1,391 10,014 11,405 40,743 156,177 93,950 254, 445 44.8 47.7 Aug. 6. 219,180 174,471 174,471 138,296 79.3 1,144 10,014 11,158 33,551 175,361 97,864 255, 765 49.6 52.4 13. 227; 844 177,764 177,764 136,899 77.0 5,359 7,130 12,489 37,591 171,098 95,259 262,309 47.9 49.8 20. 223,058 176,568 176,568 136,498 77.3 7,232 4,274 11,506 34,984 173,161 92,316 262,239 48.8 50.0 27. 229,015 174,416 174,416 137,356 78.7 8,092 11,812 19,904 34,695 175,084 94,117 268, 028 48. 3 51.6 Sept. 3. 232,734 179,261 179,261 136,676 76.2 8,839 10,050 18,889 34,584 180,576 100,416 270,631 48.7 51.4 10. 230,321 176,951 23,999 172,952 135,459 78.3 8,594 10,050 18,644 34,726 188, 541 100,161 276,054 50.1 53.8 17. 214, 549 166,506 215.767 150,739 121,206 80.4 8,726 5,795 14,521 33,522 185, 869 81,364 276, 039 52.0 58.0 24. 233,032 187,315 230;617 156,698 126,597 80.8 6,927 5,195 12,122 33,595 178,026 94,944 272,347 48.5 58.2 Oct. 1. 227,040 185,893 2 31,485 154,408 118,844 76.9 3,344 4,911 8,255 32,892 187,392 99,329 270, 892 50.6 60.4 8. 227,104 176088 2 30,577 145,511 114,544 78.7 4,510 13,711 18,221 32,795 191,610 99,948 274,065 51.2 63.1 15. 216,075 189,256 2 32,384 156,872 119,160 76.0 7,355 12,525 19,880 36,939 185,029 107,949 278,147 47.9 59.6 22. 223,170 170973 2 32.273 138,700 107,697 77.6 8,354 10,449 18,803 33,394 195,274 100,153 273,103 52.3 63.8 Xfl 29. 227,071 175,689 2 27,129 148,560 109,691 73.8 9,180 10,072 19,252 32,130 191,144 99,639 273,266 51.3 61.2 Nov. 1 1 5 2 9 . . . 2 2 23 3 2 5 8 9 , , , 0 0 8 6 4 9 5 2 8 1 1 1 8 6 7 1 8 44 0 52 3 5 1 8 2 2 2 2 2 3 4 1 2 , 6 , , 5 5 3 0 5 5 3 0 2 1 1 15 4 4 1 9 8 , , 9 6 9 7 8 49 1 6 1 1 1 1 1 1 2 2 6 , , , 3 2 4 0 9 6 9 0 7 7 7 7 4 6 5 . . 4 9 8 1 1 9 0 0 , , , 7 7 8 4 6 2 1 6 5 1 1 1 4 2 0 , , , 8 7 2 3 3 8 3 6 2 2 2 2 4 3 1 , , , 5 5 0 6 7 4 1 9 3 3 3 4 1 1 5 , , , 8 9 9 8 4 8 5 2 4 1 1 1 8 8 9 2 5 2 , , , 7 0 4 2 7 8 7 5 7 1 1 1 0 0 0 3 3 4 , , , 8 2 4 1 7 0 9 6 0 2 2 2 7 7 7 1 2 1 , , , 3 4 0 1 6 5 9 9 4 4 5 4 8 9 1 . . . 7 4 1 6 6 5 1 1 6. . . 6 3 0 $a H 26. 234,900 171621 2 14,760 156861 119,113 759 10,562 6,998 17,560 45,719 185,905 101,619 273,194 49.6 55.4 Dec. 3. 210,304 163787 2 16,184 147603 116,126 786 11,374 2,421 13,795 32,722 213,938 105,627 272,128 56.6 61.6 p 10. 212, 733 165551 2 18,666 146885 117, 771 80.2 13,295 1,006 14,301 32,881 212,138 101,776 276,146 56.1 61.3 •17. 213,629 167074 2 19,796 147278 111,514 757 13,620 13,620 32,935 200,141 87,816 278,821 54.6 60.0 23. 220,705 174068 2 21,779 152289 116,234 763 13 892 13,892 32,745 202,211 91,937 283,740 53.8 59.6 CO 30. 218,637 173563 2 17,109 156454 113,922 728 12,893 12,893 32,181 202;257 92;550 280,960 54.2 58.7 I 1 Adjusted percentages are calculated after increasing or reducing reserves held by the amount of accommodation extended to or received from other Federal Reserve Banks. I 2 Paper discounted for other Federal Reserve Banks. F W Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 ANNUAL EEPOET FEDEEAL EESEEVE BOARD. FEDERALRKERVEBANKOFPMIADELPHIA. MOVEMENT OFEARHIN6 ASSETS DURIH61920. UNITED STATES SECURITI, 50 PURCHASED BILLS HELD IOO too so so Si--* * i —» 60 60 40 40 20 20 0 PERCEHTAQEOFWARFAPER TO TOTAL DISCOUNTS FOR BAHKSIH DISTRICT. 300\ 1 1 1 1 1 1 1 1 1 r 1 \300 250 2S0 I fit 200 I 200 % W i • • ISO m m ft m m m H §^ SR 1I1•I • ftf • c Hi 150 IOO 1 ^s^ 1i IOO • • • SO m IK 1i 50 0 K O DISCOUNTED BILLS. (SEE NOTE BELOW) 300 300 250 200 TOTAL EARNING ASSETS j «^^J/^jAl^j//^|A^^Agt/6Zr AU6\SEPT. OCT. NOV\DEC. y f secured by 6overnntenbTf6i Obligations discounted,forJBarUCsirvDistrict. B.JkalSPafierdiscounted fbr&uiKSuiDistrict. C.Jotal &isa)unted%xfierkeld'. Sbtties\B'andCrepresents -wherea&ovclinj&B-%x{ierdiscocLnte£Lfor > l i 3 J k d i t d i t^ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3—PHILADELPHIA. 419 FEPERALRESfflEBAMOF PHILADELPHIA K NET DEPOSIT LIABILITY. 5 o3 F.R. nan CIRCULATION. SO CASHRESERVES.An0RESERVERATI0S.l9EO. 70 70 60 GO SO SO 40 40 3D 30 20 20 JO 10 /:/?. HOTf C/RCUIATIOIH 4S0 4S0 400 400 350 300 2S0 ZOO /SO 100 SO miYOTELIABILITIES/'L; AliP TOTAL RESERVES, "C". JAtt. FEB. MAR. APR. MAY JUHEJULY AU6. SEPT OCT. IHOV. DEC. Jdjuscea jvcrcertJbagesare calcuLaJbed, after increasing or reducing reserrcsheld,-bthtfdrf t dd d di Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.— Volume of paper discounted and bought o [In thousands of dollars.] Discounted paper. Purchased paper. Total discounted and purchased paper. Month. Se G c o u v re e d r n b - y Bankers' Trade Bankers' Dollar Trade Total. ment accept- accept- All other. Total. accept- ex- accept- 1920 1919 1918 1917 war obli- ances. ances. ances. change. ances. gations. January 647,658 594, 744 286 52, 628 3, 723 3, 523 200 651,381 684,606 41, 369 2,672 February 558, 269 461, 021 1, 830 837 94, 581 2,250 2,250 560, 519 642,150 36, 022 11, 741 March 542, 843 451, 064 812 488 90, 479 1,388 1,388 544, 231 834, 820 34, 987 7,620 April 569,199 464, 752 33 233 104,181 992 992 570,191 917, 957 49, 205 7,654 May 460, 000 393, 587 18 518 65, 877 504 504 460, 504 946, 013 80, 401 25, 850 June 496,289 375,112 292 354 120, 531 1,034 1,034 497, 323 079, 712 99, 947 46,166 July 489> 727 323, 533 119 541 165, 534 616 591 25 490, 343 032, 353 140, 214 33,648 August 520, 882 315, 286 316 205, 280 8,058 7,708 350 528, 940 923, 285 150, 346 25, 621 September 418, 472 273, 440 225 231 144, 576 1, 503 1,373 130 419, 975 004, 403 163, 960 24, 991 October 374, 914 252, 626 475 351 121, 462 8,765 7,790 975 383,679 152, 013 235, 942 21, 385 November.... 354,671 242, 002 200 88 112,381 2,742 2,342 400 357, 413 686, 469 366, 542 50, 958 December 387, 334 268, 287 125 547 118, 375 9,657 8,857 396, 991 846. 702 512, 349 51, 024 Total: 1920 5, 820, 258 4, 415, 454 4,129 4,790 1,395, 885 41, 232 38, 352 2,880 5, 861,490 1919 10, 736, 435 10, 209,981 18 3,753 522,683 14, 048 13, 928 100 20 10,750, 483 1918 1, 833, 598 1, 504, 637 47 5,650 323, 264 77,686 77, 254 432 1,911, 284 1917 223, 416 32, 803 726 189, 887 i 85, 914 83,977 1,937 i 309,330 "I 1 Includes $15,204,040 of acceptances purchased from the Federal Reserve Banks of Boston and New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3 PHILADELPHIA. 421 SCHEDULE 4.—Earnings and expenses. 1920 1918 1917 EARNINGS. Discounted bills $10,420,161 $7,987,864 $3,241,105 $370,359 Purchased bills 574,074 67,019 756,313 474,653 United States securities 742,235 495, 768 233,489 123,875 Municipal warrants 49 18,170 Transfers—net earnings 339 Deficient reserve penalties (including interest). 69,150 25,673 29,784 6,878 Net service charges received 1,265 47, 714 Profits realized on United States securities 13, 768 Sundry profits 41,666 33,556 49,286 7,917 Total earnings.. 11,848,551 8,609,880 4,357,740 1,015,959 CURRENT EXPENSES. Expense of operation: Assessments, account expenses of Federal Reserve Board 56,804 49,059 33,929 22,057 Federal Advisory Council (fees and traveling expenses) 378 381 372 350 Governors' conferences (including traveling expenses) 272 210 174 Federal Reserve Agents' conferences (including traveling expenses) 64 140 Salaries- Bank officers 123,338 96,929 64,288 46,206 ClericalstafT 799,385 577,104 283,624 42,615 A Sp ll e c o i t a h l e o r fficers and watchmen 7 8 0 0 , ,4 9 1 2 2 1 4 5 4 9 , , 6 2 8 2 8 8 14,976 8,311 D Of i f r i e c T P c e e r t r a o r s v r ' d s e a i ' l n e i f n e m d e g c s a e l l e x lo r p k w e s n a ' s n t e r c a s e v s eling expenses 4 9 1 , , , 4 4 8 6 6 8 8 2 9 0 5 0 4 1 5 , , , 2 4 0 6 7 2 5 5 8 1 9 0 4 2 1 , , , 1 1 4 6 2 6 6 7 0 0 3 0 3 1 1 , , , 0 3 5 1 8 6 9 6 0 1 0 3 Legalf ees 2,530 1,941 . 1,570 1,700 Rent 18,020 1,500 5,050 9,070 Taxes and fire insurance 20,063 15, 775 13 Telephone 15, 492 14,423 6,779 2,803 Telegraph 10,565 7,578 3,170 325 Postage 56,721 60,780 40,283 1,470 I E L n x i s g p u h r r e t a , s n h s c a e e g a e a t, n a d n p d r e p m ow iu e m r s on fidelity bonds 2 3 2 7 , ,2 6 4 1 5 3 4 0 7 4 1 7 5 7 , , , 8 8 6 4 1 0 8 6 4 2 1 4 6 6 , , , 9 8 5 5 9 0 1 9 1 4 1 U , , 7 4 8 2 0 6 6 0 Printing and stationery 113,644 78,477 34,366 7,311 Repairs and alterations 26,988 31,581 2,565 233 Cost of currency shipments to and from member and nonmember banks 81,370 35,354 All other 66,445 102,559 45, 588 9,183 Total expenses of operation 1,620,167 1,260,243 593,464 163,955 Cost of Federal Reserve currency (including expressage, insurance, etc.) 292, 540 209,419 243, 857 70,340 Miscellaneous charges, account note issues 77,508 45, 411 3,081 1,887 Taxes on Federal Reserve bank note circulation , 110, 904 98,132 Furnitureand equipment 75,065 100, 868 215,043 3,782 Bank premises 90 61,112 31,471 Disbursements of transit department in excess of net service charges received 22,120 Total current expenses 2,176,274 I 1,775,185 1,086,916 I 262,084 Current net earnings 9,672,277 I 6,834,695 3,270,824 753,875 PROFIT AND LOSS ACCOUNT. Earnings 11,848,551 4,357, 740 1,015,959 Expenses 2,176,274 1,775,185 1,086,916 262,084 Current net earnings 9,672, 277 | 6,834,695 3,270, 824 753, 875 Profit and loss account Jan. 1 220,238 Additions to current net earnings. ""146,194*! 3.697 Total., 9,818,471 | 6,838,392 3,491,062 843,841 i Credit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

422 ANNUAL REPORT FEDERAL RESERVE BOARD. SCHEDULE 4.—Earnings and expenses—Continued. 1920 1919 1918 1917 PROFIT AND LOSS ACCOUNT—continued. Deductions from current net earnings on account of— Reserve for depreciation on United States securities $105,396 $29,112 $116,131 Bank premises 646,620 182,604 Assessment, account expenses of Federal Reserve Board, January-June, 1920 41,828 All other 1,339 108,283 Total deductions 753,355 179,223 298,735 Net earnings available for dividends, surplus, and franchise tax, Dec. 31.. - 9,065,116 6,659,169 3,192,327 $843,841 Dividends paid . . 496,679 462,380 583,983 623,603 Transferred to surplus fund 8,204,775 6,196,789 2 2,608,344 Franchisetax paid United States Government 363,662 Profit and loss, Jan. 1,1918 220,238 2 Includes $1,304,172 reserve for Government franchise tax transferred to surplus in 1919. SCHEDULE 5.—Currency receipts from and shipments to member and nonmember banks. Receipts. Shipments. Total receipts. Total shipments. Month. m b F e a r m n o k m b s e . r m b F n e a r o m n o n k m b - s e . r m b e a T m n o k b s e . r m T b o e a m n n k b o s e n . r - 1920 1919 1920 January $44,696,318 $2,542,163 $33,689,992 $47,238, 481 $47,191,945 $33,689,992 $18, 370,300 February 27,925,784 1,206,850 60,276,829 29,132,634 32, 030, 619 60,276,829 25, 761,150 March 38,520,745 1,475,361 48,045,055 39,996,106 28,172,620 48,045,055 25,565,400 April 44,882,087 1,815,624 46,795,965 46,697,711 39,959,215 46,795,965 27,421,050 May 38,271,755 1,318,691 48,879,250 39,590,446 40,681,745 48,879,250 27,192,000 June 47,107,482 1,428,613 47,084,490 48, 536, 095 37,295, 680 47, 084, 490 26, 538, 600 July 49, 866, 032 1, 757, 944 53, 279, 310 51,623,976 38,394,924 53,279,310 32,617,025 August 47,065,548 1,735,251 60,711,627 48,800,799 33,425,219 60,711,627 36,287,240 September 49,889,443 2,020,213 57,511,399 51,909,656 36,468,581 57,511,399 34,991,090 October 50,228,559 3,029,003 64,210,360 53,257,562 37,026,356 64,210,360 41,637,000 November 51,813,404 1,856,474 55,338,584 53,669,878 30,064,643 55,338,584 43,312,472 December 57,856,215 1,783,890 67,443,521 59,640,105 43,763,463 67,443,521 49,575,732 Total: 1920...548,123, 372 21, 970,077 643, 266,382 570,093,449 643,266, 382 1919...430,627,999 13, 847,011 389,045, 559$223,500 444, 475,010 389, 269, 059 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO, 3 PHILADELPHIA. 423 SCHEDULE 6.—Operations of check clearing and collection department. Items drawn on banks in own district. Items drawn on Treas- Located in Federal Reserve Located outside Federal urer of United States. Month. Bank city. Reserve Bank city. Number, i Amount. Number. Amount. Number. Amount. January 1,323,515 $871, 701, 394 1,640,664 $221, 7; 119,325 $36,690, 052 February 1,101,600 731, 403, 635 1, 387, 451 188, 077^ 822 131, 526 49, 297, 607 March 1, 455, 239 892, 548, 986 1,810,110 250, 771, 848 154, 408 45, 971,104 April 1, 348, 060 867, 762, 963 1, 790, 824 263, 379, 400 183, 236 44,172, 880 May 1,312, 924 863, 298, 342 1, 723, 422 254,136, 689 171, 690 60, 239, 907 June 1, 403, 276 967,274, 060 1,950, 877 286, 493,104 156, 428 36, 467,164 July 1, 356, 369 906, 745, 081 1,909, 614 282, 933, 530 151, 565 52, 581, 983 August 1,413, 215 851, 331, 222 1, 738, 321 267, 420, 047 153, 675 66, 247,189 September 1, 358, 177 891, 032, 474 1, 831, 532 289, 246, 950 140, 670 43, 954, 242 October 1, 453, 792 890, 265,130 1, 927, 682 280, 622, 953 160, 801 27, 430, 395 November 1, 475, 689 837,101, 262 1, 858, 434 259, 688, 959 190, 006 34, 746,608 December 1, 591, 336 895, 722, 064 2,110, 370 278, 519,409 205, 486 30, 904, 624 Total: 1920 16, 593,192 10, 466,186,613 21, 679,301 3,123,073, 591 1,918, 816 528, 703, 755 1919 12, 051, 043 8, 907, 672, 377 15, 379,260 2,129,201,167 2,117,101 923,192, 809 1918 4, 256,167 6, 655,028, 275 8, 569, 3931, 263, 933, 879 (x) 8 1917 3, 648,181 3, 704, 029, 949 5, 339, 710 778, 780, 708 Items forwarded to other Federal Reserve Banks Total, 1920. and their branches. Month. Number. Amount. Number. Amount. January 762, 806 $236, 022,162 3, 846, 310 $1, 366,196,488 February 622, 916 190, 753, 209 3, 243, 493 1,159, 532, 273 March 771, 504 260, 349, 900 4,191, 261 1, 449, 641, 838 Aprih 716, 686 236, 496, 249 4, 038, 806 1,411, 811,492 May 709, 174 219, 276, 228 3, 917, 210 1,396, 951,166 June 746, 540 242, 039, 227 4, 257,121 1, 532, 273, 555 July 731, 696 235, 523, 482 4,149, 244 1, 477, 784, 076 August 709,138 226, 768, 946 4, 014, 349 1,411,767,404 September 745, 460 233,627,036 4, 075, 839 1, 457, 860, 702 October 834, 312 233, 142, 022 4, 376, 587 1, 431, 460, 500 November 821, 520 217, 283, 594 4, 345, 649 1, 348, 820, 423 December 854, 226 206, 657, 714 4, 761, 418 1,411,803,811 Total: 1920. 9,025, 978 2, 737, 939, 769 49,217,287 16, 855,903, 728 1919. 1, 456, 465 2, 806, 870, 819 37,003,869 14, 766,937,172 1918. 4, 308, 201 3, 373, 447, 958 C1) 0) 1917. 2, 364, 381 2, 663, 681,129 0) C1 i Figures not available. 45525°— 21- -28 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 4—CLEVELAND. L. B. WILLIAMS, Deputy Chairman and Acting Federal Reserve Agent. EARNINGS AND EXPENSES. Gross earnings of the Federal Reserve Bank of Cleveland for the year 1920 amounted to $14,458,619.07. The expense of operation amounted to $2,470,685.07. The dividends provided for in the act have been paid., and $11,215,837.25 transferred to surplus. With the addition of this sum, surplus account now totals $20,304,837.25, or 95 per cent of the subscribed capital. A detailed statement of earnings and expenses will be found in Schedule 4. DISCOUNT OPERATIONS. While the demand for loans and rediscounts from our member banks was strong throughout the year, the total volume was not as large as in 1919, although the number of approved applications greatly exceeds the number approved in 1919. The number of member banks accommodated was greater than in 1919, indicating that our rediscount and loan facilities were availed of more generally. The number of approved applications was 14,702, as compared with 12,182 in 1919. The number of banks accommodated was 450, as compared with 409 in 1919. The total loans to members, including rediscounts, was $2,895,670,536.08 as compared with $3,125,856,- 369.10 in 1919. It is interesting to note that of the amount of rediscounts in 1920 compared with the amount in 1919 the paper secured by United States Government securities decreased about $505,000,000 and paper based on commercial transactions increased in volume about $270,000,000, while agricultural and live-stock paper rediscounted shows an increase of $1,423,000. Included in the commercial transactions was $26,377,013 of trade acceptances, as compared with $14,091,343.03 in 1919. This indicates that the trade acceptance is continuing to gain in popularity throughout the country, and noticeably so in this district. The Federal Reserve Bank of Cleveland throughout the year was in a position to grant substantial accommodations to the other Federal Reserve Banks. In fact, at one period accommodations were granted to seven other Federal Reserve Banks at the same time. With the exception of San Francisco, each of them has been served in this way at some time during the year. The volume of 424 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 4 CLEVELAND. 425 these rediscounts was $1,406,072,415, as against $229,017,300 in 1919. The peak of such rediscounts was reached on October 9, with a total of $150,108,359. Purchases of United States Government securities aggregated $878,588,500, compared with purchases totaling $284,617,250 in 1919. Included in these purchases for the year 1920 were $641,500,- 000 of 2 per cent certificates, of which $641,000,000, together with $190,000,000 of 4 per cent certificates that were also included in the year's purchases, represented loans to the United States Government for short periods (usually one to five days) at times when the various issues of Treasury certificates of indebtedness were passing through the period of redemption. RESERVE POSITION. From a reserve position of about 50 per cent at the opening of the year, a gradual decline occurred until during the month of April the low point of about 44 per cent was reached, by reason of heavy discounting and a strong demand for loans. During the early spring months a fluctuation within narrow limits occurred, reserves running roughly between the 42 and 50 per cent levels. From that time on, as a result of a curbing of nonessential loans, speculation, and profiteering that was accomplished by our member banks, there has been a slow but steady improvement, the high point for the year (61.4 per cent) being reached on December 21. MOVEMENT OF MEMBERSHIP. By reason of the extreme business activity and the consequent necessity for additional banking facilities, 21 national banks were organized in this district during the year. Sixteen State banks were also admitted to membership during the year, haying total resources in excess of $50,000,000. Nine member banks liquidated in the period under review, seven of which were national banks, and two State banks. Of the former, two were merged with State bank members, three were succeeded by other national banks, while the assets of the other two were taken over by State banks. Of the two liquidated State banks, one went into the hands of a receiver and the other was succeeded by a national bank. In two instances there have been consolidations of member banks— two national and two State banks consolidating in each instance. The final result of the movement of membership was a net gain of 14 national banks and 13 State banks, a total of 27, giving us a membership at the close of the year of 870. The total paid-in capital stock of this bank on December 31 was $10,702,850, an increase during the year of $1,169,900. While no intensive campaign for State bank members has been conducted during the year, interest in membership has not been permitted to slacken. The main campaign begun in 1919 has been continued, with gratifying results. Our bank relations department has also assisted in bringing the desirability of membership to the attention of banks that have shown an interest. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 ANNUAL REPORT FEDERAL RESERVE BOARD. RELATIONS WITH MEMBER BANKS. The establishment of the department of bank relations has been amply justified by the results achieved. Through the medium of personal calls on all member banks by traveling representatives of this department information has been given and service rendered which could not have been acomplished by any other means. The men selected for this work are all experienced in banking, can "talk the banker's language/7 and are thoroughly familiar with Federal Reserve Bank operations and the rulings of the Federal Reserve Board. Many misunderstandings are cleared up and differences adjusted which might otherwise result in endless correspondence. Reports from many banks all indicate that the service is highly appreciated. During the eight months this department has been in operation, 1,011 regular calls have been made upon member banks, as well as special visits occasionally made upon nonmembers in the interest of membership or other matters. Representatives have been present at fifteen "group'7 meetings, three State conventions, and three county meetings. Representatives of this department have encouraged the purchase of bankers* and trade acceptances as a profitable secondary reserve, and a decided interest in these forms of investment may be traced to this source. BANK EXAMINATIONS. Owing to the uncertain credit conditions and the unusual demands for credit during the past year, it has been necessary for us to give particular attention to the condition of member banks as well as to make a careful analysis of all reports of examination. The analysis of financial statements is under the supervision of our discount department, but a close cooperation with the examination department has resulted in the interchange of information to the distinct advantage of both. With the acquisition of new members and the broadened scope of our operations the work of the department has been largely increased in order to make our examinations of more value, and further expansion is now intended. We have enjoyed the fullest cooperation from the banking departments of this district, and, except in a few instances where it has been impossible to make the necessary arrangements, we have operated in conjunction with the State examiners; however, owing to the uncertainty of credit conditions and a desire to be of greater service to our member banks, it may be necessary to increase somowhat the number of independent examinations of our State bank members. We have established the custom of furnishing to the board of directors of each institution a copy of the report of examination, and we have had many expressions of appreciation from them. The present personnel of the department consists of a manager, three field examiners, and one assistant, all experienced examiners familiar with the operations of the Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 4 CLEVELAND. 427 FISCAL AGENCY OPERATIONS. With the successful flotation of the Victory loan in 1919 the activities of the fiscal agency department slackened somewhat, but the sale of various issues of certificates of indebtedness and the redemption thereof, conversions and exchanges of bonds, payment of coupons, the sale of war savings securities, and other fiscal agency functions have served to make the year one of extreme activity. Eighteen issues of Treasury certificates of indebtedness were offered for subscription during the year. The number of subscribers to these issues was 8,064, and the total amount allotted $350,343,500. Subscriptions amounted to $431,705,000, or more than 23 per cent in excess of allotments. Certificates amounting to $1,248,891,000 were redeemed during the year. Exchanges of temporary for permanent bonds of war issues were made during the year in an amount in excess of $500,000,000, involving the handling of over 3,656,000 pieces. Denominational exchanges totaled $109,165,000 (including certificates of indebtedness). More than 10,000,000 coupons from bonds and certificates of indebtedness were redeemed during 1920, in the amount of $63,240,118. FEDERAL RESERVE NOTES. Following the seasonal inflow of Federal Reserve notes during the month of January, there was a steadily increasing demand for currency during the year, as a result of which an expansion of the circulating medium occurred, amounting to approximately $100,000,000. The high point of the year was reached on December 23, when notes outstanding totaled $383,787,990. Currency operations with member and nonmember banks totaled $1,237,030,644, while total receipts and shipments covering all money operations reached the sum of $1,991,131,130. FEDERAL RESERVE BANK NOTES. The volume of Federal Reserve Bank notes has remained practically unchanged during the year, the increase in bank notes outstanding on December 31 being but 3 per cent in excess of that one year ago. It is noted that a shrinkage has occurred in both $1 and $2 bank notes outstanding, with a more than offsetting compensation in fives. This is accounted for in the fact that $1 and $2 notes were not procurable in sufficient quantities to meet the demand when at its height, and notes of the $5 denomination were taken. At one time during the year fully 30 per cent of the total volume of outstanding bank notes was in process of redemption. CLEARING AND COLLECTION OPERATIONS. Voluntary agreement to remit at par for all cash items forwarded by this bank have been received from all banks in this district with the exception of two located in Kentucky, where collections are now made through agents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

428 ANNUAL REPORT FEDERAL RESERVE BOARD. A more free use of the check collection facilities afforded by our transit department is being made, 40 more member banks utilizing this service than used it during the year 1919. The number of banks in other districts forwarding items direct to us is ranidly increasing, some districts having granted the direct sending privilege to all of their members. During the year 42,235,690 checks, aggregating $15,155,475,713, were handled by this office and the two branches. The additional work incident to the prompt and efficient handling of this immense volume of checks necessitated a corresponding increase in our transit and bookkeeping clerical forces, which numbered 229 at the close of the year, as compared with 124 on December 31, 1919. The volume of noncash items has increased immensely during the year, our foreign and city collection departments handling during that period 200,000 items, aggregating more than $250,000,000. A detailed statement covering the operation of our check clearing and collection departments appears in Schedule 6. PERSONNEL. t)n September 30 the resignation of Mr. D. C. Wills as Federal Reserve Agent and chairman of the board was regretfully accepted to permit his appointment to the Federal Reserve Board, and Mr. L. B. Williams, now deputy chairman, was appointed acting Federal Reserve Agent. The personnel of the board of directors has not changed by reason of the reelection of Mr. Robert Wardrop (class A), and Mr. Thomas A. Combs (class B). The vacancy created by the resignation of Mr. Wills has not been filled by the Federal Reserve Board. The vastly increased work of nearly all departments and the establishment of new departments in connection with the performance of additional functions has naturally resulted in a corresponding increase in our clerical staff, which now numbers (including forces at the branches) 969 employees. BANK PREMISES. In addition to the land acquired by purchase in 1919 as a site for the new home of the Federal Reserve Bank of Cleveland, there has also been acquired, through lease, adjoining land having a frontage on Superior Avenue of about 67 feet, running through 200 feet to Rockwell Avenue. This additional space will provide, together with the land already purchased, an area of about 43,000 square feet. Plans for the proposed new building have been prepared by Messrs. Walker and Weeks, local architects, and on or about February 1,1921, it is the intention to begin the razing of the old buildings now on the site and start the erection of a 10-story building especially designed to meet our requirements. OPERATIONS OF BRANCHES. The branch banks at Cincinnati and Pittsburgh have continued in operation, and a heavily increased volume of work has resulted in materially increased forces at both points. No new functions have been added to the scope of branch operations, but it is now Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 4 CLEVELAND. 429 thought that by February 15 the work of taking over the sub treasury at Cincinnati will have been accomplished, and that branch will then perform the functions heretofore conducted at that point by the Treasury Department. LIBRARY. Since the 1st of January, 1920, the library staff has increased from three to seven, including the part-time services of the editor of the monthly magazine, "Federal Keserve Notes." During the past summer a weekly newspaper entitled "4—D News'7 was started, consisting of five or six multigraphed sheets each week. This is issued for employees only, and gives the weekly news of the work of the various departments and the personnel of the bank and its branches. The library furnishes news items from periodicals and newspapers concerning the Federal Reserve System and affairs in the Fourth District. The preparation and distribution of this paper occupies the greater part of one assistant's time. The "Service Bulletin/7 also issued by the library, was described in last year's report. It lists and briefly digests articles of interest to bankers in current periodicals. Fifteen hundred copies are printed every half month and sent to all the member banks of the district, and to the officers and heads of departments in this bank. The book collection consists of 570 volumes, including practically all of the up-to-date works on banking and finance, ana standard works on general economics, statistics, accounting, office practice, business English, etc. We have no recreational collection. GENERAL BUSINESS AND BANKING CONDITIONS. The past year has witnessed a rather startling change in the business situation. The early months of the year were characterized by extreme activity in all lines of business endeavor. With the slowing up of the business machinery and the improvement in transportation during the summer and fall months, the credit strain became somewhat relieved, but we were called upon to rediscount heavily for other Federal Reserve Banks, and the improvement was not immediately reflected in easier credit in the Fourth District, although as the volume of Federal rediscounts lessens the situation will be helped in some degree. The year closed with prices materially lowered from the peak of the year, industry in most lines at low ebb, wage reductions and parttime employment with a large number of unemployed. It is estimated that the number of unemployed in the district is in excess of 500,000. The diminished purchasing power of the unemployed has naturally affected both wholesale and retail trade, although both lines are stimulated somewhat by price concessions. There is some discontent among farmers over the prices received for the 1920 crops, which has been offset to some extent by the size of yield. Generally speaking, the 1920 crops were especially favorable as to both quantity and quality, although the burley tobacco crops were disappointing in that a considerable part of the production was low grade, which growers find quite difficult to sell at a satisfactory price. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

430 ANNUAL REPORT FEDERAL RESERVE BOARD. SCHEDULE 1.—Statement of condition at close of business Dec. 31. [In thousands of dollars.] 1919 ! 1918 | 1917 RESOURCES. Gold and gold certificates 5,622 5,346 13,257 29,153 Gold settlement fund—Federal Reserve Board. 77,016 43, 848 52,125 37, 664 Gold with foreign agencies 270 10, 768 525 4,725 Gold in New York assay office 5,285 Total gold held by banks 88, 193 59, 962 65, 907 7.1, 542 Gold with Federal Reserve agents 177, 626 128, 795 138, 277 55, 370 Gold redemption fund 15, 622 1,872 1,368 99 Total gold reserve 281, 451 190, 629 205, 552 127,011 Legal tender notes, silver, etc. 2,228 713 1,127 238 Total reserves. 283,679 191,342 206, e 127,249 Bills discounted: Secured by Government war obligations. 100,010 114, 525 115, 213 5, loo All other 101, 333 49, 992 12,121 37.163 Bills bought in open market 27,211 48,607 37,445 21;112 Total bills on hand. 228, 554 213,124 164, 779 64,008 United States Government bonds 834 834 1,085 8,268 United States Victory notes 10 10 United States certificates of indebtedness. 23, 799 23, 583 111, 726 1 31, 271 Short-time municipal obligations 7 Total earning assets 253,197 237, 551 177, 590 103, 554 Bank premises 1,520 640 Uncollecteditems and other deductions from gross deposits 73,629 83,698 62,830 "*36,"735 5 per cent redemption fund against Federal Reserve Bank notes. 1,239 1,122 532 All other resources 384 600 870 2,150 Total resources. 613, 648 514,953 448,501 | 269,688 LIABILITIES. Capital paid in 10, 703 9,533 9,073 i 8,026 Surplus 20, 305 9,089 1,776 Government deposits 4,562 1,675 750 30, 577 Due to members—reserve account 150, 347 129, 415 123, 424 109, 725 Deferred availability items 54, 553 71, 604 49, 581 16,553 Other deposits, including foreign Government credits 454 6,128 196 125 Total gross deposits 209, 916 208, 822 173, 951 Federal Reserve'notes in actual circulation 348, 951 264, 738 251, 782 101,883 Federal Reserve Bank notes in circulation (net liability). 22, 735 22, 007 9, 731 All other liabilities '.. 1,038 764 2,188 2,799 Total liabilities. 613, 648 514, 953 448, 501 269, 688 1 Including 1-year Treasury notes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTPJCT 5T0. 4 CLEVELAND. 431 11FEDERALRESERVEBAtiKOFOlVElAND. MOVEMENT OF EARNING ASSETS DURING 1920. UNITED STATES SECURITIES SO PURCHASED BILLS HELD too SO 60 40 20 0 PERCEtlTAOE OF WAR PAPER TO TOTAL DISCOUNTS FOR BANKS IH DISTRICT. 2S0 200 ISO DISCOUNTED BILLS (SEE NOTE BELOW) TOTAL EARNING ASSETS JAN. FEB. MAR APR. MAY JUftE JULY AUG. SEPl OCT. NOK DEC. (a) Paper secured by Government war obligations discounted for banks in district. (6) Total paper discounted for banks in district. (c) Total discounted paper held. Space between lines (b) and (c) represents paper discounted for other Federal Reserve banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—Movement of principal asset and liability items during 1920. CO [Amounts in thousands of dollars.] to Discounted bills. Purchased bills. Reserve percentages. Diseouiiied for member banks in this district. .Oate. e a a T s r s o n e t i a t n s l g . T he o l t d a . l f c R F o B o r e e D a u s d o n i n e s e t k - t r r h e v s a e d . e l r Total. G Se o c b E v u y . e r r e n d - Percent m i c n h P a a o r u s k p r e e - e d n t. R F B c o f e e h P a r t s d a o u n h e s e m r e k r e r - r v s d a e . l T he o l t d a . l U s S e n t t c i i a u e t t r s e e i . d s - re T s c o e a r t s v a h e l s. dep N o e s t its. R n F c o i e t e r i t d s c o e e u e s n r l r . v a i a n - e l Actual. ju A st d e - d.1 ment (B-*-A). war obligations. Jan. 2 237, 822 181,239 161, 239 111,920 71.3 43, 317 4,902 43, 210 28, 364 183,934 119, 611 262, 997 48.1 49.4 9 234, 452 113, 359 143, 359 100, 854 70.4 51, 343 12, 386 63, 729 27, 364 191, 758 124,172 262, 345 49.6 52.8 16. 243, 340 144,185 9, 500 134, 685 95, 525 70. 9 51, 852 11, 939 63, 791 35, 364 185, 966 135,018 254, 607 47.7 53.2 23. 229, 056 133,194 2, 500 130,694 90,957 69.6 52, 738 18, 574 71, 312 24, 550 198, 065 131, 799 255, 587 51.1 56.6 30 241, 264 143, 495 8,900 134; 595 93,040 69.1 54, 734 18, 621 73, 355 24, 414 188, 972 134, 333 256, 556 48.3 55.4 Feb. 6. 238, 670 139, 860 8,600 131, 260 S6, 801 66.2 58, 336 15, 619 73,955 24, 855 187,159 128, 352 257, 936 48.5 54.7 13. 250, 432 149, 986 8, 550 141, 436 97, 316 68.8 59,150 17, 032 76,182 24, 264 185, 877 124, 212 272, 544 46.8 53.3 20. 256, 370 162, 480 4,915 157, 565 112, 845 71.6 61,120 8,491 69, 611 24, 279 189, 374 136, 201 270, 050 46.6 49.9 27. 270, 382 175, 984 9, 885 166,119 120, 800 72.8 64, 383 5, 736 70,119 24,279 187, 853 134, 980 283,835 44.9 48.6 Mar. 5. 250,008 159,114 9,715 149, 399 101, 927 68.2 62, 757 3, 868 66, 625 24,269 196, 219 128,159 279, 676 48.1 51.4 12. 266,696 175,190 28, 415 148, 775 101, 950 68.5 63, 943 2,794 66, 737 24, 769 187, 753 128, 432 288, 006 45.1 52.1 19. 241,097 135, 614 9,250 123, 364 78, 957 62.5 63, 705 543 64, 248 41.235 214, 794 135, 237 283, 217 51.3 53.7 26. 267,444 181,219 37, 891 143, 328 97,169 67.8 61, 576 413 61, 989 24, 236 195,055 129, 489 296, 044 45.8 54.8 Apr. 2. 262, 675 171, 525 27,695 143, 830 94, 500 65.7 58, 627 287 58, 914 32.236 206, 036 140, 605 291, 013 47.7 54.1 244,635 160, 693 20, 570 140,123 90, 489 64.6 56, 476 261 56, 737 27,205 215, 734 119, 762 304, 348 50.9 55.8 16. 247, 9S0 162, 530 23, 989 138, 541 84, 514 61.0 54, 978 6,260 61, 238 24, 212 216, 770 126,137 302, 583 50.6 57.5 23. 264,029 183, 077 53,652 129, 425 56.4 50, 742 5,999 56, 741 24,211 205, 750 126, 329 307, 829 47.4 61.1 30. 256,233 175, 709 42, 526 133,183 77,176 57.9 50, 563 5,749 56, 312 24,212 225, 033 139, 942 305, 875 50.5 61.3 MayJ. 254, 220 173, 902 33, 512 140, 390 84,109 59.9 50, 375 5,734 56.109 24,209 223, 699 135, 010 307, 294 50.6 59.4 246, 750 167, 388 32, 263 135,125 83, 320 61.7 50, 034 5,128 55,162 24,200 229, 874 132, 486 308, 372 52.1 60.6 21. 256, 548 174, 707 44, 232 130, 475 81, 259 62.3 53, 566 4,075 57,641 24,200 214, 078 129, 278 305, 310 49.3 60.4 28. 250, 789 168, 480 40,193 128, 287 81, 550 63.6 54, 512 3,568 58.110 24,199 !227, 547 131.023 310, 984 51.5 61.4 June 4. 241, 298 159, 795 36, 875 122, 920 75, 301 61.3 54, 316 2,988 57, 304 24,199 j238, 502 137) 144 306, 057 53.8 62.8 11. 242, 566 162, 352 40,186 122,166 80, 806 66.1 53,149 2,408 55, 557 24,657 i 234, 770 125,135 315, 201 53.3 62.8 18. 232, 056 150, 592 37, 797 112, 795 69, 875 61.9 55, 329 1,900 57, 229 24,235 I233, 579 120, 702 307, 026 54.6 63.4 25. 252,100 173,410 50, 868 122, 542 75,324 61.5 52,612 1,210 53,822 24,868 I 222,968 120,176 315, 789 51.1 63.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 2 255, 035 179, 518 61,097 118,421 09,077 58.3 51,328 51,328 24,189 224, 786 127,338 312, 585 51.1 65.0 9.:.".'::"": 253,307 178, 342 54,494 123, 848 74,040 59.8 50,800 50,800 24,165 232, 371 124.480 320,621 52.2 64.4 16 242, 708 169, 205 51,979 117, 226 67, 265 57.4 49, 336 49, 336 24,165 240, 598 125, 889 316, 143 54.4 66.2 23. . . 237, 078 15G, 313 47, 333 108, 980 58, 765 52.1 46, 599 10,001 56,600 24,165 248, 041 127,672 316, 021 55.9 68.8 30 237, 855 154,139 54,755 99, 384 51,919 52. 2 47, 550 10,001 57, 551 26.165 253,170 132, 902 315, 526 56.5 70.9 Aug. 6 246, 683 167, 651 64,083 103, 568 54,208 52.4 45, 537 9,329 54,866 24.166 238,124 127, 045 314, 771 53.9 70.5 13 264, 722 175, 844 63,979 111,865 60, 777 54.3 43,153 21,559 64, 712 24,166 238,019 132, 372 326, 617 51.9 70.5 20. 265, 799 181, 328 74, 964 10ii, 364 57, 829 54.4 42,486 16, 892 59, 378 25, 093 237, 240 135, 498 322, 899 51.8 71.8 27 2S7, 772 198, 714 99,620 97, 094 51,650 53.2 45, 452 21, 440 66, 892 24,166 230, 076 137, 872 334, 884 48.7 74.3 Sept. 3. 287,688 206, 413 114,993 91, 420 46,343 50.7 43, 988 13,122 57,110 24,165 228,938 139, 326 331, 336 48.6 75.6 10 304, 407 216, 530 116, 388 100,142 55,853 55.7 41, 097 2,615 43, 712 44,165 227, 058 134,777 350, 558 46.8 71.3 17 282, 607 198, 924 111, 972 86, 952 44,153 50.8 40, 541 40, 541 43.142 240, 515 131, 842 344, 203 50.5 74.0 24 296,146 221, 667 135,620 86, 047 41,011 47.7 40,298 10,000 50, 298 24,181 232, 297 130, 072 350, 647 48.3 78.6 Oct. 1 275, 092 201, 363 122, 906 78, 457 37, 798 48.2 39, 586 10,000 49,586 24.143 257,733 138, 788 345, 751 53.2 80.6 8. 295,698 223,177 140, 440 82, 737 40,188 48.6 38, 937 9,441 48,378 24,143 250, 018 144, 826 352, 480 50.3 80.4 15 297, 941 227, 548 139, 032 88, 516 44,474 50.2 40,220 6,030 46,250 24,143 236, 329 133, 994 351, 657 48.7 78.5 22. 282,663 217,170 137, 874 79, 296 33,959 42.7 40, 350 40,350 25,143 256, 424 139, 448 350, 553 52.3 80.5 29 285, 282 221,183 138, 750 82, 433 39,435 47.8 39,956 39,956 24,143 254, 320 138, 267 352,123 51.9 80.2 Nov. 5 293, 640 229, 770 141,232 88, 538 45,048 50.9 39,727 39, 727 24,143 245, 337 142, 586 346, 776 50.1 79.0 12 269, 446 209, 532 120, 266 89, 266 45, 344 50.8 35, 772 35, 772 24.142 270, 909 138, 819 351, 659 55.2 79.8 19 258, 862 189, 664 111, 984 77,680 36, 529 47.0 34, 055 34,055 35.143 265, 587 131.481 342, 885 56.0 79.6 o 26 263, 215 207, 872 112,106 95, 766 50,069 52.3 31, 201 31, 201 24.142 275, 850 135, 701 352, 873 56.5 79.4 Dec. 3. 255, 000 203, 346 111, 757 91, 589 44, 059 48.1 27, 511 27, 511 24.143 276, 666 139, 005 341, 873 57.5 80.8 10. .. . 261,957 190, 245 88, 920 101, 325 58,250 57.5 27,070 27, 070 44, 642 276, 875 138, 806 349, 311 56.7 74.9 17 257,624 174, 907 75,860 99, 047 51, 793 52.3 26, 074 26, 074 56, 643 283, 510 141, 477 348, 232 57.9 73.4 23 . . 242, 617 191, 745 78, 489 113, 256 58,905 52.0 26,229 26, 229 24, 643 301,077 126, 445 365, 707 61.2 77.1 30 250, 557 199, 333 81, 573 117, 760 54,176 46.0 26, 581 26, 581 24, 643 287, 326 135, 281 350, 725 59.1 75.9 1 Adjusted percentages are calculated after increasing or reducing reserves held by the amount of accommodation extended to or received from other Federal Reserve Banks. CO CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

434 ANNUAL REPORT PEDEKAL RESERVE BOARD. Jo H£T DEPOSIT LIABILITY, F.R. NOTE CIRCULATE, §8 CASH RESERVESJliD RESERVE MTIQS.IB20. 90 SO PO 60 SO AA A 40 30 20 10 0 RESERVE PERCENTAGES. ACTUAL«A",ARJUSTED»B: Sft'NOTE'BELOW. 200 i ISO ISO 100 '^^^^^ 100 SO SO ,n DEPOSIT LIABILITY 4O0 4CO 3S0 350 300 300 2S0 2S0 200 200 ISO ISO 100 100 SO SO f:R. MOTE CIRCULATION sso DEPOSITANDER.NOTELIABILITIES. "L" AND TOTAL RZSERVES, *C: t JAN. FEB. MAR. APR. ?<UY\fUME\JULY AUG. SEPT. OCT. NOV. DEC. ^djasted jverc&rfages are calculated, after increasing or redu;cuig reserves held? - b t h t f dX tdJd t idi Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.— Volume of paper discounted and bought. [In thousands of dollars.] Discounted paper. Purchased paper. Total discounted and purchased paper. 1920 Total. w e b S r y a e n r c m G u o r e o b e n v l d i t - - B a a a c n n c c e k e p e s t r . - 's c T e r p a t d an e c a e c s - . All other. Total. B a a a c n n c c e k e p e s t r . - 's ex D c o h l a la n r ge. c T e r p a t d an e c a e c s - . 1920 1919 1918 1917 gations. January 243,779 210,493 1,757 31,529 28,926 28,477 350 99 272,705 235, 741 53,546 1,997 February 276,973 242, 728 32 1,033 33,180 30,993 30,927 50 16 307,966 210, 875 53,172 8,599 March 272,602 229,305 102 4,286 38,909 28, 417 27,931 200 286 301,019 262,072 50,199 5,057 o April 263,243 213,342 493 3,299 46,109 23,207 23,003 204 285,450 238,910 93,844 9,987 May 239, 219 199, 399 230 2,217 37,373 27,011 26,872 12 127 2G8,230 255,297 76,198 12,352 June 224, 298 186, 901 178 1,217 36,002 29,245 29,115 130 253,543 250.886 58,969 14,267 July 196,977 152, 020 85 2,422 42,450 21, 539 21,364 175 218,516 316,197 145,982 16,555 August 197, 568 163, 543 452 2,200 31,373 24,937 24,557 380 222, 505 290,474 146,544 29,335 September 164, 377 124, 495 1,568 2,138 36,176 24, 535 24,160 375 188,912 323,878 156,502 27,560 T October 170, 537 119,815 1,003 2,220 47,499 24,046 23,396 450 200 194,583 337,227 ISO, 991 33,658 November 232,353 178, 833 4,186 1,671 47,663 13,625 13,095 530 245,978 311,240 215,449 70,580 December 413,744 348,169 1,686 1,917 61,972 18,121 17, 837 220 64 431,865 351,177 277,522 72,338 Total: 1920... 2,895,670 2,369,043 10,015 26,377 490,235 294,602 290,734 3,076 792 3,190,272 1919... 3,125,857 2,873,440 14,091 238,326 261,750 256,640 721 4,389 3 387 G07 i 1918... 1,386,118 1,060,687 24,894 300,537 122, 800 117,517 5,283 1,508,918 1917... 211,176 132,179 4,401 74,596 i91,109 91,109 i 302 285 i i Includes $40,102,053 of acceptances purchased from the Federal Reserve Banks of Boston and New York. CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

436 ANNUAL REPORT FEDERAL RESERVE BOARD. SCHEDULE 4.—Earnings and expenses. 1920 1919 1918 1917 EARNINGS. Discounted bills $10,570,828 $5,341,785 $3,124,696 $375,169 Purchased bills 3,064,408 1,882,985 1,141,585 496,711 United States securities 602,939 . 450, 308 611, 895 317,924 Transfers—net earnings 99,391 45,607 51, 214 14,022 Deficient reserve penalties (including interest). 102,804 65,442 66, 462 17, 844 Profits realized on United States securities 2,350 167, 239 24,261 Net service charges received 41,029 Municipal warrants Sundry profits 18,249 11,352 | 22,744 I 3,181 Total earnings | 14,458,619 7,800,829 5,226,864 i 1,297,244 CURRENT EXPENSES. Expenses of operation: Assessments account expenses Federal Reserve Board 63,246 58,676 43,073 25,783 Federal Advisory Council (fees and traveling expenses) 1,047 1,035 781 653 Governors7 conferences (including traveling expenses) 237 499 145 Federal Reserve agents' conferences (including traveling expenses) 100 255 • 191 167 Salaries— Bank officers 143,171 99,815 81,307 46,678 Clerical staff 872,339 494,639 297,579 44, 861 Special officers and watchmen 35,149 17,444 16,901 4,357 All other 112,492 71,687 9,049 2,541 Directors' fees 3,350 2,600 3,060 2,120 Per diem allowance 1,120 930 1,060 1,320 Traveling expenses 2,23^ 1,709 1,571 Officers' and clerks' traveling expenses 15,046 16,304 15,513 954 Legal fees 2,000 3,000 2,000 2,000 Rent 78,717 53,525 37,465 16,625 Taxes and fire insurance 3,183 533 1,939 Telephone 8,503 6,445 5,489 1,694 Telegraph 27,153 15,084 6,680 817 Postage 76,212 70,916 54,346 7,940 Expressage 1,521 2,023 5,646 4,692 Insurance and premiums on fidelity bonds 31,710 33,088 20,125 7, 416 Light, heat, and power 5,376 3,937 2,551 725 Printing and stationery 120,652 46,952 46,566 7,544 Repairs and alterations 38,149 9,560 15,430 8,828 Cost of currency shipments to and from member and nonmember banks.'. 48,710 33,790 All other 101,576 31,552 49,135 5,404 Total expenses of operation 1,792,991 1,076,278 717,740 194,941 Cost of Federal Reserve currency (including expressage, insurance, etc.) 334,679 168,867 182,092 91,256 Miscellaneous charges, account note issues 63,519 16,981 3,069 Taxes on Federal Reserve bank-note circulation 93,322 80,491 Furniture and equipment 141,008 53,414 85,784 Depreciation of furniture and equipment 30,232 Disbursements of transit department in excess of net service charges received 14,594 Bank premises 45,166 Total c urren t expenses. 2,470,685 1,396.031 992,185 334.092 Current net earnings 11,987,934 6,404,798 4,234,679 963,152 PROFIT AND LOSS ACCOUNT. Earnings 14,458,619 7,800,829 5,225,864 1,297,244 Current expenses 2,470,685 1,396,031 992,1S5 334,092 Current net earnings 11,987,934 6,404,798 4,234,679 90S,152 Additions to current net earnings account of— Amounts previously deducted from current net earnings for assessment account expenses Federal Reserve Board 63,246 All other 522 132,311 94,797 Total 12,051,702 6,404,798 4,366,990 1,057,949 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 4 CLEVELAND. 437 SCHEDULE 4.—Earnings and expenses—Continued. 1920 1919 1918 *917 PROFIT AND LOSS ACCOUNT—continued. Deductions from current net earnings account of— Bank premises. ... $129 551 .f254 684 Assessment account expenses Federal Reserve Bonrd 53,900 46,555 Premium on United States bonds. $209,470 Reserved for depreciation United States bonds 48,220 5,044 $84,406 Ail other 4,730 14,477 Total deductions . . . 231,071 311,013 98,883 209,470 Net earnings available for dividends, surplus, and franchise tax 11,820,031 6,093,785 4,268,107 848,479 Dividends paid 604,194 556,785 716,107 716,168 Transferred to surplus fund... 11,215,837 5,537,000 13,552,000 Profit and loss, Jan. 1, 1918., 132,331 I I 1 Includes $1,776,000 reserve for Government franchise tax transferred to surplus fund in 1919. SCHEDULE 5.—Currency receipts from and shipments to member and nonmember banks. Receipts. Shipments. Total receipts. Total shipments. Month. From F n r o o n m - To To nonmember member member member 1920 1919 1919 banks. banks. banks. banks. January $43,794,765 $556,013 $34,557,770 $144,700 $44,350,778 $47,863, 327 $34,702,470 $16,629,866 February 28,305,533 3"'4"8 ,3"0"4' 54" 3I43,896 214,655 ""'653,837 22,812,-"' 5*,5585,551 ,415,774 March 43,543,075 466,312 48,:875,073 219,337 009,387 24,350, 49', 094,410 ,259,917 April 41,586,292 460,245 56,;335,037 99,399 046,537 27,562, 56,434,436 ,625,774 May 43,996,960 478,983 44,!882,853 114,023 475,943 32,194, 44,996,876 ,313,854 June 53,538,399 582,348 53, C094,477 325,560 120,747 31,149, 53.220,03' 191,348 July 50,256,732 609,635 52,3310.568 144,722 866,367 36,798, 52; 455,290 193,882 August 42,654,696 361,729 64/126:455 249,168 016,425 25,940, 64,375,623 329', 582 September 47,909,716 509,410 65,207,029 404,254 419,126 28,415, 65,611,283 159,578 October 51,671,447 489,714 60,1009,031 296,488 161,161 35,668, 60,305' 733,156 November 54,151,110 584,052 54, i526,992 251,393 735,162 27,879, 54,77S; 242,091 December 71,426,376 766,307 67, C062,795 386,816 192,683 42,662, 67,449, 028,532 Total 572,835,101 6,213,052 655,331,976 2,650,515 579,048,153 383,296,004 57,982,491 362,123,354 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

438 ANNUAL REPORT FEDERAL RESERVE BOARD. SCHEDULE 6.—Operations of the check clearing and collection department. [Amounts in thousands of dollars.] Items drawn on banks in own district. Items drawn on Items forwarded to Located in Federal Located outside Fed- Treasurer of United o se th rv e e r F B e a d n e k r s a l a R n e d - Month. Reserve Bank and eral Reserve Bank States. their branches. branch cities. and branch cities. Number. Amount. Number. Amount. Number. Amount. Number. Amount. January 631,278 670,761 2, 281,653 351,403 77,023 22,532 102,729 78,796 February 575,190 597, 790 1,985,129 314, 885 68,019 16, 591 81,604 61,968 March. 893, 890 799,172 2, 564', 905 430, 305 132, 346 18.940 117,529 95,159 April 742, 650 736, 397 2,470,369 403, 044 148,415 32', 808 104,129 84,532 May 710, 957 674, 496 2, 350, 031 386, 610 109, 992 17,422 92, 958 88,495 June 794- 670 823, 937 2,670, 018 434, 799 160, 091 22,903 92, 518 100,195 July 782, 463 811, 270 2,679, 543 421, 400 92, 573 14,697 93,595 92, 551 August 791, 692 760, 533 2, 539,132 385, 702 81, 486 12,958 93,350 95, 285 September 800,186 823, 370 2,587, 730 415, 031 138,696 16,085 100,454 110,034 October 822, 098 828, 537 2, 716, 606 405, 558 163,127 15,955 105, 480 106,378 November 781, 023 758, 350 2,629, 364 395, 615 133, 815 15, 856 113, 861 95,186 December 818, 739 7S4,108 2, S38, 253 404, 701 172, 478 19, 907 132,679 101,636 Total.... 9, 144, 836 9,068, 721 30,312, 733 4, 729,053 1,476, 061 226, 714 1,230, 886 1,110,215 Totals. Month. 1920 1919 1918 1917 Number. Amount. Number. Amount. Number. Amount. Number. Amount. January 3, 092, 683 1,123,492 1, 955,262 1,010, 944 627,427 451, 453 435,384 218,778 February 2,707,942 991,234 1, 711,943 805,684 572,330 464,393 377,911 186, 342 March 3, 708, 670 1,343, 576 2,360, 549 1,012,130 743, 355 560, 819 454, 580 236, 309 April 3, 465, 563 1, 256, 781 2, 298, 871 884, 822 822, 971 643, 768 434, 129 248, 982 May 3, 263, 938 1,147, 023 2, 249, 897 914, 521 876, 055 783, 553 471, 797 299, 214 June 3, 717, 297 1,381,834 2, 262, 729 984,199 1,078, 471 1,000, 772 492, 316 355, 994 July 3,648,174 1,339,918 2, 477, 687 966, 889 1,330, 669 894, 066 463, 713 379, 309 August 3,505,660 1, 254, 478 2, 379,938 934, 651 1, 386, 509 848, 291 469, 594 368, 450 September 3,627, 066 1, 364, 520 2, 529,103 1,113, 295 1,379,233 842, 544 522,431 338, 747 October 3,807, 311 1,356, 428 2, 949, 818 1,084, 012 1,715,623 1,056, 600 573, 698 412, 879 November 3,658, 063 1, 265, 007 2, 713, 967 985, 812 1, 591,943 902, 535 585, 016 434, 819 December 3, 962, 149 1, 310, 412 3, 223, 547 1,269, 563 1, 883,64.9 973, 635 620, 591 452, 233 Total....42,164,516 15,134,703 29,053,311 11,966,522 14,008,235 9, 422, 429 5,901,160 3, 932, 056 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5—RICHMOND. C ALB WELL HARDY, Chairman and Federal Reserve Agent. INTRODUCTION. In the annual report of the Federal Reserve Bank of Richmond, covering 1919, it was stated that progress in the direction of normal prices and conditions had been disappointing, and that the year had closed with banking and commercial credits expanded to such unprecedented proportions as to warrant repeated warnings from the Federal Reserve Board and the Federal Reserve Banks. When that statement was made, it was felt that we were passing through a crisis, and that unless the tendency to expansion could be checked and the process of gradual liquidation commenced, serious consequences, if not widespread disaster, would inevitably ensue. We may now look back upon the year just closed with a considerable degree of relief. It is plainly evident that the crest of the perplexing wave of expansion has been reached and passed, and that our banking system has successfully withstood a test far more severe than had been contemplated. We may therefore look into the future with optimism and with entire confidence that the conservative policies and practices which have been followed throughout the entire year will ultimately lead us to perfectly safe ground. The year just ended has been one of reaction and readjustment, and ended with business earnestly and cautiously seeking a stable basis or level. Just what this level will eventually be, as compared with the normal level existing prior to the war, it is impossible yet to determine, but it is perfectly natural to assume that a considerable time must yet elapse before any normal level can be reached. In the spring there was a very marked readjustment of price levels in a number of raw materials. This was followed by what might almost be called a rebellion on the part of the buying public against the then prevailing high prices for a number of finished products. Late in the summer the prices of tobacco and cotton, particularly the latter, had broken to such an extent that many producers were faced with the prospect of considerable loss, because of the previous high cost of crop production. Member banks availed themselves of the facility offered by the Federal Reserve Bank of Richmond for discounting their paper to a much larger extent during 1920 than during any previous year. At the beginning of the year there were 584 member banks, which number had increased to 610 at the close of the year. During the year 438 of these banks (or 74 per cent of the average number) were accommodated through the discount or purchase of paper. The number of banks so accommodated during 1920 increased over the num- 45525°—21 29 439 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

440 ANNUAL REPORT FEDERAL RESERVE BOARD. ber accommodated during 1919 in every State in the district, with the exception of West Virginia. The number accommodated each month during 1920 increased very considerably over the number accommodated during the corresponding months of the year 1919, except during the month of February, 1920. The increase was very noticeable in the months of November and December, there being 91 more banks accommodated in November, 1920, than in November, 1919, and 118 more in December, 1920, than in December, 1919. The aggregate amount of paper discounted for or purchased from member banks during 1920 was $3,398,000,000, while the aggregate purchased and discounted during 1919 was $4,184,000,000. During 1919, however, when a much larger proportion of the volume consisted of member banks' collateral notes secured by Government obligations (no such note for more than 15 days) the average time each note had to run was less than the average time of the notes discounted during 1920. A comparison of the average amount of paper held will give a correct idea of the increased extent to which member banks resorted to the Federal Eeserve Bank during 1920. During 1920 the daily average amount of paper under discount to member banks was $128,783,677, while the daily average for 1919 was $124,- 511,442. In order to carry these amounts for member banks it was necessary for the Federal Reserve Bank to rediscount with other Federal Reserve Banks. During 1920 the daily average amount discounted with other Federal Reserve Banks was $16,459,348. During 1919 the daily average amount was $22,793,813. While it is true that during 1919 and 1920 member banks were borrowing considerable sums on Government securities to be used for purposes other than the financing of subscriptions or the carrying of securities, it Is manifest that during 1920 there was a marked decrease in the amounts used to carry securities, with a corresponding increase in the amounts used for agricultural and commercial purposes. This is clearly indicated (though not actually measured) by the percentages at the beginning and at the end of 1920. At the beginning of the year 72 per cent of the total amount of member banks' paper (discounted and purchased) was secured by Government obligations, while at the close of the year only 43 per cent was so secured. Currency received from banks in the Fifth District during 1920 amounted to $194,498,377 against $169,276,368 during 1919. Shipments of currency to banks in the Fifth District amounted to $243,- 019,912 for 1920, compared with $177,320,587 for 1919. Shipments to nonmember banks during 1920 were only $258,039, which makes it apparent that currency service was almost exclusively rendered to member banks. During 1920, the bank received $10,811,777 of currenc}^ from nonmember banks, practically all of which was in payment of cash letters sent to nonmember par clearing banks for the account of members. The transit department during 1920 handled a total of 33,731,801 items, amounting to $11,505,945,224. During 1919 the total number of items handled was 20,934,335. amounting to $9,304,179,945. The average number of items handled each day during 1920 was 110,960, while the daily average for 1919 was 69,319. The increase in the number of items handled in 1920 over 1919 was slightly more than 60 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5 RICHMOND. 441 It is notable that the average amount per item has decreased during the last three years, being $591 in 1918; $445 in 1919; and $341 in 1920. While falling prices in 1920 may have had some effect in reducing the average amount per item, it is believed that the chief causes of this decrease are to be found in the increasing popularity of the check clearing facilities offered to member banks, and the increasing number of small banks, checks on which are collectible through the system. At the close of the year, checks on all banks in the Fifth District, with the exception of a number of State banks in South Carolina, were collectible at par through the Federal Reserve Bank. In addition to the above clearings, which were handled through the transit department of the bank, member banks routed direct to other Federal Reserve districts during the year 151,415 cash letters, containing approximately 10,000,000 items, amounting to $2,043,- 114,649. Wnile the actual items composing these letters were not handled by the Federal Reserve Bank, the amounts represented by them were cleared and accounted for by the Federal Reserve Bank. The appreciation of this facility for direct routing is shown by the increase of the total number of direct routing letters from 79,627 in 1919 to 151,415 in 1920—the increase being approximately 100 per cent. A very important facility which is extended exclusively to member banks is the wire transfer of funds. This is made possible by the system of leased wires connecting all Federal Reserve Banks and branches with each other and with the Federal Reserve Board in Washington. During the year 1920 the Federal Reserve Bank of Richmond made 21,836 telegraphic transfers, involving $1,246,- 861,158. Of these transfers 8,304 amounting to $439,472,350, were made at the request of member banks in the Fifth District transferring funds to other Federal Reserve districts, and 13,532 transfers amounting to $807,388,808, were made at the request of member banks of other Federal Reserve districts transferring funds to members of the Fifth District. These transactions increased in number during 1920 to the extent, approximately, of 50 per cent over the previous year. The use of this system for the transfer of funds has become increasingly serviceable to member banks, and is being used by them more and more each year. It has had no small effect in revolutionizing the method of effecting domestic exchanges. The service is rendered without cost to member banks. The system of private leased wires, which connects all Federal Reserve Banks, their branches, and the Federal Reserve Board, has made it possible to handle with the utmost dispatch banking and financial transactions of whatever magnitude or importance, and has become indispensable to the system. The operation of this system has made possible daily settlements in the gold settlement fund, by which the balances due to and due from other Federal Reserve Banks and branches are settled each day. During the year 1920 we received through this fund, from other Federal Reserve Banks, a total of $7,985,000,000, and paid to other Federal Reserve Banks $7,996,000,000. Prior to the year 1919, member banks had not availed themselves very freely of the service afforded by the bank in the matter of col- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

442 ANNUAL REPORT FEDERAL RESERVE BOARD. lecting time items, such as drafts, bills, notes, etc. The activities of this department began to increase during the year 1919, and continued to increase at a much more rapid rate in 1920. During the year 1920, the collection department received for collection 53,391 noncash items. Of these, 42,681 amounting to $110,695,727 were collected and remitted for, 10,266 amounting to $13,997,524 were returned unpaid, and the balance were in process of collection at the close of the year. These collections have been effected through the Federal Reserve System without charge on the part of the Federal Reserve Banks, the only cost to member banks being the charges actually deducted by banks located at the points other than Federal Reserve cities where collections were payable. During the year 1920, the bank received and paid 4,176,822 interest coupons from United States securities, amounting to $23,474,500. The coupons thus received from member banks were credited to the members7 reserve accounts upon day of receipt. Another service rendered by the bank, which relieves the member banks of no small amount of trouble and labor, is that of cutting and crediting interest coupons taken from securities held by th£ bank as collateral or for safe-keeping. The custodian of securities, during the year 1920, clipped 388,297 coupons amounting to $4,680,362 from securities thus held. The work incident to cutting, collecting, and crediting these coupons was done without expense to the owners. FINANCIAL RESULTS OF OPERATIONS. Gross earnings for 1920 were $6,909,143, against $4,775,321 in 1919, an increase of 45 per cent. Operating expenses for 1920 were $1,521,948, against $911,927 for 1919, an increase of 67 per cent. That the increase in operating expenses was by a larger percentage than the increase in gross earnings was due to the increased facilities accorded to member banks and to the expansion in the transit department necessitated by material additions to the list of par points in the district. After deducting all expenses, depreciation, losses, and dividends, the bank shows a profit of $4,945,454 for 1920, compared with $3,649,925 for 1919. Approximately 93 percent, or $6,398,449, of the total gross earnings resulted from rediscounted and purchased paper. The average rate of earning on bills discounted during 1920 was 0.0569 and on bills purchased 0.0574, compared with 0.0434 and 0.0457, respectively, for the year 1919. The average rate of earning on total invested assets during 1920 was 0.0529, compared with 0.0416 for 1919. The average daily holdings of all assets other than rediscounted or purchased paper were $13,773,000, consisting principally of United States one-year certificates of indebtedness pledged with the United States Treasurer to secure Federal Reserve Bank note circulation ($1 and $2 notes). As a result of the increased earnings during 1920, the surplus and earnings of the bank at the close of the year exceeded the bank's subscribed capital by $227,316.69. In accordance with the provisions of the Federal Reserve Act 90 per cent of this excess, or $204,584.02, was paid to the Government as a franchise tax, and the remaining 10 per cent, or $22,731.67, was treated as an additional credit to surplus account, making the surplus of the bank at the close Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5 RICHMOND. 443 of the year slightly more than twice the bank's paid-in capital. The surplus account at the close of the year 1920 was $10,561,331.67. The following is a condensed statement of earnings, expenses, dividend and surplus accounts of the bank for the year 1920: h A o d v ld e a r i i l n a y g g e s . e A a d r v n a e i i r n l a y g g s e . ea T rn o i t n a g l s. e A r a a n r t n n e i u n o a g l f . Bills discounted $104,111,152 $16,177 $5,920,892 . 0569 Bills purchased 8,319,757 1,305 477,557 .0574 United States securities 13,773,047 757 276,991 .0201 Penalties and miscellaneous earnings. 638 233,703 Total. 126,203,956 18,877 6,909,143 Current expenses $1,521,948 Current net earnings 5,387,195 Net debit to current net earnings for depreciation, etc 143,690 Net earnings available for dividends, surplus, and franchise tax 5,238,505 Dividends paid 293,051 Franchise tax paid to Government 204,585 Transferred to surplus account 4,740,869 5,238,505 Total paper discounted and bought during 1920 amounted to $3,398,033,156. Of this total, $3,346,321,599 was discounted for member banks of the Fifth District and $51,386,557 represented bankers7 acceptances purchased from the same member banks. The remainder, $325,000, represented oriental silver exchanges purchased through the Federal Reserve Bank of New York. It will thus be seen that practically all of the bank's investments in paper during 1920 was for the accommodation of its own member banks. During the year 1919, $4,130,942,910 was discounted for members, $52,977,382 purchased from members, and $5,079,874 purchased from the Federal Reserve Bank of New York, making total discount operations during 1919, $4,189,000,166. Reference has already been made to the fact that paper discounted for member banks had a longer average maturity during 1920 than during 1919. During 1919, 95 per cent of the paper handled was discounted for a period of 15 days or less, while during 1920, 86 per cent was discounted for a period of 15 days or less. The total number of bills discounted and purchased during 1920 was 94,248, or a daily average of 310, compared with a total number of 50,889, with daily average of 169 for the year 1919. To enable the bank to meet the credit demands of its member banks, we were compelled to borrow from other Federal Reserve Banks continuously throughout the year, except for a period of about 40 days during February and March. The peak of our rediscounts with other Federal Reserve Banks was reached on June 15, 1920, at which time we had $30,000,000 borrowed from other Federal Reserve Banks. During 1919 the peak was reached on August 4, at which time our rediscounts with other Federal Reserve Banks were $55,000,000. On August 4, 1919, we were holding $134,274,711.41 secured by Government obligations, and only $21,615,179.46 commercial paper, whereas on June 15, 1920, at the peak of the load, we were holding $74,151,322.92 Government secured paper and $52,613,205.58 com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

444 ANNUAL REPORT FEDERAL RESERVE BOARD. mercial paper. The larger daily average rediscounts with other Federal Keserve Banks during 1919 and the larger amount reached at the highest point in that year were, therefore, occasioned by borrowing member banks to finance subscriptions to Liberty bonds and Victory notes and certificates of indebtedness. Without the provision of the Federal Reserve Act for interdistrict rediscounting, our member banks could not have received the benefit of the liberal accommodations extended to them, since without rediscounting ourselves our reserve would have fallen below the statutory limit of 40 per cent on Federal Reserve notes and 35 per cent on deposits, and at a certain time during 1920 even as low as 25 per cent. The high-water mark in members' liability for paper discounted with or sold to the Federal Reserve Bank was reached on September 27, 1920, on which date their liability amounted to $144,044,000. On December 31, 1920, 361 of the 610 member banks were discounting in the amount of $130,521,365. The total available reserve of these 361 discounting banks was $38,475,403. Their rediscount liability, therefore, was 339 per cent of their total reserve deposits. The ratio of rediscount liability to reserve deposits of borrowing banks at December 31, 1919, was 296 per cent. At the close of 1920 the ratio of discounting banks' liability to reserves was smaller than at the close of 1919 with respect to the banks located in Maryland, West Virginia, and the District of Columbia, while in the States of Virginia, S"orth Carolina, and South Carolina the ratio was very much larger at the close of 1920. This is particularly true with respect to the States of North Carolina and South Carolina, whose ratios were 558 per cent and 658 per cent, respectively. This means that the borrowing banks in North Carolina and South Carolina were receiving credit accommodation to the extent of five and a half and six and a half times, respectively, their reserve balances with the reserve bank. The following tables will show in a concise form the discount operations of the bank during the year 1920: Total amount Per cent Balance held Per cent Classification. discounted. of total. Dec. 31,1920. of total. Secured by Government war obligations $2,938,149,755 86.5 $45,955,388 38.1 Otherwise secured 24,761,570 .7 2,601,341 2.2 Unsecured commercial paper 383,410,274 11.3 66,917,036 55.5 Bankers' acceptances purchased 51,711,557 1.5 5,047,600 4.2 Total 3,398,033,156 100.0 120,521,365 100.0 Number of mem- Stages. T d o i t s a c l o a u m nt o e u d n . t M a b c e a c m n o k m b s e - r t b h t e e r r i s d c t i i s n modated. Dec. 31, 1920. Maryland $853,352,757 71 District of Columbia 126,076,891 10 16 Virginia 1,749,971,890 140 185 West Virginia 45,885,775 36 116 North Carolina 311,559,803 85 97 South Carolina 310,861,040 96 Other Federal Reserve districts.. 325,000 Total..... 3,398,033,156 438 610 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5 RICHMOND. 445 Distribution by maturity at time of discount or purchase. Per cent Amount. of total. 15 days or less. $2,945,139,418 86.7 16 to 30 days.. 90,579,429 2.6 31 to 60 days.. 179,078,632 5.3 61 to 90 days.. 177,121,929 5.2 Over 90 days.. 6,113,748 .2 Total.... 3,398,033,156 100.0 TRADE ACCEPTANCES. The bank, during 1920, handled for its members $12,676,164 of trade acceptances as against $9,082,378 during 1919, an increase of 39 per cent; the daily average amount handled for 1920 being $41,698 against $30,074 for 1919. On December 31, 1920, the bank held trade acceptances amounting to $2,005,340. BANKERS7 ACCEPTANCES. During the year 1920 the bank purchased acceptances amounting to $51,711,557, classified as follows: Foreign, $41,037,088; domestic, $10,674,469. All of this paper represented bankers7 acceptances purchased from member banks of the Fifth District, with the exception of $325,000 of oriental silver exchanges purchased through the Federal Reserve Bank of New York. Practically all of bankers7 acceptances were purchased directly from the accepting bank at commercial discount rate, unindorsed by any other bank. Although the total amount of acceptances purchased during 1920 was about $6,000,000 less than during 1919, the excess purchase during 1919 consisted largely of the $5,000,000 of bills purchased from the Federal Reserve Bank of Boston. The acceptances representing operations within the district, therefore, were about equal for the two years. Acceptances purchased during 1920 bore a longer average maturity than those purchased during 1919, as evidenced by the fact that the average daily balance held during 1920 was approximately $1,000,000 m excess of the average daily balance held during 1919. The average discount rate on acceptances during 1920 was 0.0574 as compared with 0.0457 for the year 1919. RESERVE POSITION. The daily average of net deposits was highest for the month of February, being approximately $57,000,000, and showing a gradual tendency to decline, reaching an average of $43,000,000 during December. The average of Federal Reserve notes in circulation was lowest for the month of June, being $121,000,000, and consistently increasing to an average of $150,000,000 for the month of December. Because of this increase in Federal Reserve notes, the combined deposit and note liability of the bank was highest during the month of December, with an average of $193,000,000. Actual, cash reserves were likewise highest in December, averaging $87,000,- 000. The reserve percentage of the bank against combined deposit and note liability was likewise highest during the month of December, averaging 0.4521 for the month, and lowest during March, averaging 0.4108. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

446 ANNUAL REPORT FEDERAL RESERVE BOARD. MOVEMENT OF MEMBERSHIP. The number of national banks has increased 16 in the year—from 538 to 554—and State bank membership 10—from 46 to 56. Total stock subscriptions have increased during the year from 87,840 shares (50 per cent paid, $4,392,000) to 105,386 shares (50 per cent paid, $5,269,300). The number of nonmember banks in the district on December 31, 1920, is 1,600, of which about 700 have sufficient capital and surplus to make them eligible for membership. RELATIONS WITH MEMBER BANKS NATIONAL AND STATE. The department of bank examinations, organized last year, has continued to function successfully, and enjoys cordial relations with the various State bank examiners of the district, and also with the banks examined. NOTE ISSUES. In the years of 1918 and 1919., the peak of Federal Reserve notes outstanding was reached on December 23, of each year, but during 1920 the amount outstanding on December 31 was the highest of any day during the year, with indications that this amount had not on that date reached the maximum before the seasonal decline would set in. In 1919, outstanding Federal Reserve notes declined from $137,478,030 at the beginning of the year to $104,071,515 on August 21, 1919, which was the low mark for the year. In 1920 they declined from $145,765,320 at the beginning of the year to $119,948,600 on June 9, 1920, which was the low mark for the year of 1920. It will be seen from these figures that the low mark in 1920 was reached about two and one-half months earlier than in 1919, and that the minimum reached at this earlier date was approximately $16,000,000 in excess of the mLinimum reached in 1919. During 1920, $69,994,240 of the notes of other districts were returned to the banks of issue by the Federal Reserve Bank of Richmond, while $71,452,705 of Richmond's notes were returned to Richmond by other Federal Reserve Banks. Federal Reserve Bank notes are issued in denominations of $1 and $2 only, to supply the demand in this district for currency of these denominations. The balance outstanding December 31, 1920, was $11,938,000, which was approximately the same as that outstanding at the close of 1919. This circulation was secured by $12,260,000 of 2 per cent one-year United States certificates of indebtedness purchased by the bank especially for that purpose. PERSONNEL. There has been an unexpectedly large growth in our force of employees, due particularly to the increased business handled in our transit department. The number of employees referred to in the last report. 275, has grown to 514, exclusive of 153 in the Baltimore branch. 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, indicates large increases in every department, corresponding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5 RICHMOND. 447 in proportion to the general business throughout the district. On account of this growth, the force has been increased from 101 on January 1, to 153 at the close of the year, 89 of whom are women and 64 are men. It has also been necessary to add during the year three men to the official staff of the branch. The territory served by the Baltimore branch comprises the State of Maryland and 30 counties in northern West Virginia. There are 469 banking offices in this territory, of which 158 are member banks. CLEARINGS. During the year 33,731,801 items were handled, aggregating $11,505,945,224. The number of items handled increased from an average of 91,659 items per day for the first 15 days of January to an average of 150,512 items per day for the last 15 days of December, an increase of 58,853, or about 65 per cent. In addition to these, our member banks sent, under special arrangements, 151,415 cash letters containing items amounting to $2,043,114,659, direct to other Federal Reserve Banks and branches for collection and credit to the members' accounts with this bank. The total clearings, therefore, for the district, through the check clearing system, amounted to more than $13,500,000,000. These clearings were made without cost to member banks, which was only possible with respect to items on other Federal Reserve districts by the operation of the gold settlement fund, in which each Federal Reserve Bank participates. GOLD SETTLEMENT FUND. Gold settlement fund operations during 1920 showed an increase of more than $3,000,000,000 over 1919, as shown by the following table comparing receipts and disbursements for the two years: 1919 Receipts $8,076,611,000 $6,521,746,000 Disbursements. 8,081,383,000 6,510,799,000 Total $16,157,994,000 $13,032,545,000 Receipts and disbursements through the gold settlement fund during 1920 amounted to $16,158,000,000. A very large portion of this represented the clearing of checks sent to us by other Federal Reserve districts or sent to other Federal Reserve districts by this bank for payment and the credit of member banks of this district. In addition to these check clearing operations, telegraphic transfers aggregating $1,247,000,000 were made for our member banks through this fund. The inestimable benefits accruing to member banks by the operation of this system have already been pointed out earlier in this report. CAMPAIGN FOB PAR POINTS. Marked progress toward the establishment of universal par collection was made during 1920. Including all the banks in West Virginia, Virginia, and North Carolina, which became all par States during the year, 781 banks were added to the par list. The District of Columbia has been all par since shortly after the inauguration of the Federal Reserve System, and the State of Maryland Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

448 ANNUAL EEPOET FEDERAL RESERVE BOARD. since 1919, thus South Carolina is the only State in the district not collectible at par through the Federal Reserve Bank. In other words, at the close of the year of the total 2,210 banks (excluding branches) in the district, only 334 are nonpar, these being located in South Carolina. FISCAL AGENCY OPERATIONS. During the year a paid staff of about 23 persons, on the average, known as the ''war loan organization/7 headed by a director reporting to the governor, continued to function as a publicity agency in furthering the sale of Treasury certificates of indebtedness, war savings stamps, thrift stamps, and Treasury savings certificates. The war loan organization, while closely related to the bank, was, strictly speaking, not a part of the bank's force, being rather a special group employed for extra work under the general direction, and as a subsidiary agency, of the Treasury Department. The bank, of course, maintained as a part of its own organization a department known as the "fiscal agent's department/7 the scope of which is to receive subscriptions to and maintain all necessary records regarding Treasury certificates of indebtedness, war savings stamps, thrift stamps, and Treasury savings certificates; to collect payments for, and ship these securities; to keep ledgers relating to war loan deposit accounts; to keep ledgers of the fiscal agent's accounts and to make the necessary reports. It also maintained a "bond shipping department," the scope of which is to receive and have custody of all coupons and registered bonds pertaining to fiscal agency operations; to prepare and ship all coupon and registered bonds; and to conduct all exchanges and conversions. During 1920, United States Treasury certificates of indebtedness issued in anticipation of 1920 taxes, of 1921 taxes, of 1920 loans, and of 1921 loans, were sold in an aggregate total of $96,353,500. War savings stamps, thrift stamps, and Treasury savings certificates were sold through the Federal Reserve Bank of Richmond (exclusive of post office sales) in an aggregate amount of $140,173.25. Thus, through the Federal Reserve Bank of Richmond there was, during the year, an aggregate subscription allotted to* Government securities of $96,493,673.25. GENERAL BUSINESS AND BANKING CONDITIONS. The inevitable reaction anticipated in our report of last year, under the above heading, came with rather unexpected suddenness. It has exercised a corrective force upon general extravagance, and has eliminated speculation to a very large extent in securities, commodities and real estate, with consequent violent readjustment of prices. The close of the year found us still suffering from the conditions of readjustment. The necessity for exercising some control over the extension of credit, in order to avoid still further expansion, compelled material advances in our discount rate, elsewhere referred to in this report. Seasonal liquidation has been greatly retarded and even prevented by the rapid decline in our chief staples, accompanied by disorganized markets and, at times, by lack of markets. The tobacco crop, especially in the higher grades, brought reasonably good prices, even compared with the high prices of 1919. The lower grades, however, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BISTEICT NO. 5 RICHMOND. 449 suffered very severely. Cotton declined steadily throughout the fall, reaching a minimum price around 12 cents. Even at this figure, however, the demand was limited, and at many points there has been at times no market. Naturally a much smaller proportion of the crop has been moved. Under these conditions our member banks have realized only a limited percentage of customary liquidation. At the close of the year our rediscounts for member banks in North Carolina and South Carolina (the States most seriously affected) stood at $51,747,000, as compared with $26,472,000 at the end of 1919. Inability to collect their loans generally, coupled with a steady decrease in deposits, necessitated the extension of still further credits to a large number of member banks. The banks generally will begin the productive season in the new year under these credit conditions, and it will require the exercise of judgment and discretion and good management on the part of the banks generally to meet the conditions and provide credits essential for the creation of new wealth from the crops. SCHEDULE 1.—Comparative balance sheet as of Dec. 31, 1917, 1918, 1919, and 1920. [Amounts in thousands of dollars.] 1919 1920 RESOURCES. Gold and gold certificates 6,301 2, 358 2,420 5,702 Gold settlement fund—Federal Reserve Board. 22,116 14, 254 25, 201 20,429 Gold with foreign agencies 1,838 204 6, 435 162 Total gold held by bank 30, 255 16, 816 34, 056 26,293 Gold with Federal Reserve agent.. 31, 602 62, 991 39, 999 53,699 Gold redemption fund 485 5,368 7,197 6,797 Total gold reserves 62, 342 85,175 81, 252 86, 789 Legal tender notes, silver, etc. 164 224 190 363 Total reserves.. 62, 506 85, 399 81, 442 87,152 Bills discounted: Secured by Government war obligations. 10,174 72, 435 81, 507 45,955 All other 19, 483 13, 807 23, 495 69, 518 Bills bought in open market 13,156 5,465 16, 405 5,048 Total bills on hand 42, 813 91, 707 121, 407 120, 521 United States Government bonds and Victory notes. 1, 236 1,234 1, 235 1,234 United States certificates of indebtedness 1 1, 969 M, 784 12, 260 12, 262 Total earning assets. 46, 018 97, 725 134, 902 134, 017 Bank premises 309 290 504 1,277 Uncollected items and other deductions from gross deposits 18,177 57, 702 94,193 59, 875 5 per cent redemption fund—Federal Reserve Bank notes... 310 643 601 All other resources 115 541 1,184 Total resources.. 127,125 241,967 312, 868 283, 488 LIABILITIES. Capital paid in 3,664 4,062 4, 392 5,269 Surplus 116 1,156 5,821 10, 561 Government deposits 2,254 2,795 2,840 2,899 Due to members—reserve account 45, 357 54,162 62, 712 57,085 Deferred availability items 18, 828 36, 903 75, 323 40,202 Other deposits, including foreign government credits 342 112 3, 615 233 Total gross deposits 66, 781 93, 972 144, 490 100,474 Federal Reserve notes in actual circulation 56, 564 137, 478 145, 765 155,169 Federal Reserve Bank notes in circulation—net liability.. 4,005 12, 058 11, 467 All other liabilities 1,294 342 548 Total liabilities.. 127,125 241, 967 312, 868 | 283, 438 i Including 1-year Treasury notes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—Movement of principal asset and liability items during 1920. [Amounts in thousands of dollars.] o Reserve percent- Discounted bills. Purchased bills. ages. Discounted for member banks in this district. Redis- Pur- Federal Bate. e a a T s r o s n e t i a t n s l g . held. c R F o o e w e u t s d h i n e e t e t h r r e r v a d e l A. Sec B u . red m i c n h r a u a r o s k r p e - e e d t n . R F c o e f e h r e t s a o h l e s m o e r e v r r d a e l T he o l t d a . l se U S cu n ta r i t t i e t e i s d es. re T s c o e a t r s v a h e l s. dep N o e s t its. n R c o i t e r i t s c o e e u s n r l v . a in e - Actual. ju A st d e - d.1 f d > tr a 1 ! Banks. by Gov- Per cent Banks. w Total. ernment (B-5-A). war obligations. Jan. 2 138, 503 108, 448 9,570 118,018 94,177 79.8 11,480 5, 080 16, 560 13, 495 86,250 58, 587 145,277 42.3 40.1 rr 9 130, 726 106, 258 10,000 116,258 92, 577 79.6 10, 973 10, 973 13, 495 83, 286 53,151 140, 005 43.1 37.9 16. 125, 608 95, 908 9,850 105, 758 83, 602 79.0 11, 205 11, 205 18, 495 83, 444 52, 464 135, 493 44.4 39.1 23 121, 223 97, 279 10, 000 107, 279 85, 762 79.9 10, 449 10,449 13, 495 82, 549 49, 823 132, 607 45. 2 39=8 30. 124, 003 99, 700 5,000 104, 760 81, 305 77.6 10, 748 10, 748 13,495 82, 734 54, 795 130, 775 44.6 41.9 Feb. 6 121,100 97, 688 5,000 102, 688 78, 033 76.0 9,917 9,917 13, 495 88, 479 57, 795 130, 906 46.9 44.2 13 127,120 100, 508 100, 508 75, 594 75.2 10,117 10, 117 16, 495 80, 886 55, 857 130, 529 43.4 43.4 20 127, 540 104, 307 104, 307 78, 271 75.0 9,738 9,738 13, 495 79, 613 55, 880 129, 632 42.9 42.9 27 128, 374 104, 452 104, 452 79, 783 76.4 10,427 10, 427 13, 495 S\ 904 61, 222 129, 535 44.0 44.0 Mar. 5. 129, 453 106, 218 106, 218 79, 565 74.9 9,740 9,740 13, 495 75, 825 55, 511 128, 528 41.2 41.2 u 12. 130, 910 107,987 107, 987 80, 752 74.8 9,428 9,428 13, 495 75, 265 58, 566 127, 100 40.5 40.5 19 130, 287 106,697 106, 697 76, 535 71.7 10, 095 10, 095 13, 495 74, 936 57, 228 127,136 40.6 40.6 < 26. 125, 935 101, 813 15,000 116, 813 79, 378 67.9 10, 627 10, 627 13, 495 76, 442 55, 709 126, 342 42.0 33.7 Apr. 2. 123, 081 96, 233 20,000 116, 233 77,930 67.0 11,353 11, 353 15, 495 76, 692 52, 338 127, 174 42.7 31.6 9. 125,498 95,504 19, 852 115, 356 79,665 69.1 11, 499 11, 499 18,495 69, 465 48, 551 126, 920 39.5 28.2 W 16. 119,679 95,357 19,270 114, 627 81,017 70.7 10, 827 10, 827 13, 495 72,167 46, 880 125, 631 41.8 30.6 o 23, 116, 311 91,614 24, 872 116, 486 79,716 68.4 11, 202 11,202 13, 495 74, 487 47, 523 123, 752 43.5 29.0 £*• 30. 119, 865 94, 862 24, 850 119, 712 80, 834 67.5 11, 508 11, 508 13, 495 75, 915 51, 300 124, 644 43.2 29.0 «£ May 7. 118,610 93, 442 24, 556 117,998 81,118 68.7 11,673 11,673 13, 495 74,100 49,190 123, 741 42.8 28.7 t ' 14 120, 000 96,074 25,000 121, 074 82, 881 68.5 10,431 10, 431 13, 495 75, 375 53,382 122, 192 42.9 28.7 21. 117, 389 93, 837 24, 758 118, 595 82, 750 69.8 10,057 10, 057 13, 495 75, 448 51, 334 121, 277 43.7 29.4 28. 122, 899 99,456 25,000 124,456 84,837 68.2 9,948 9,948 13, 495 50, 839 120, 752 40.2 25.6 June 4. 123,942 100, 828 24, 883 125,711 84,151 66.9 9,619 9,619 13, 495 68, 946 50, 874 121, 247 40.1 25.6 11. 119,476 97,121 29, 750 126, 871 83,181 65.6 13, 495 72, 894 50, 756 120, 609 42.5 25.2 18. 118,022 24,184 119,680 74, 213 62.0 9,031 9, 031 13, 495 74, 574 49, 368 121, 852 43.6 29.4 25. 120, 731 99,067 24,904 123,971 73,206 59.1 8,171 8,171 13,493 70,716 47,572 122,109 41.7 27.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 2. 119,942 99,353 24,950 124,303 67,761 54.5 7,096 7,096 13,493 74, 818 48,195 125,280 43.1 28.7 9. 123, 545 103, 832 24,972 128, 804 70,460 54.7 6,220 6,220 13,493 76, 896 51,618 126, 380 43.2 29.2 16. 119, 753 98,960 25,000 123, 960 65, 225 52.6 5,300 5,300 15,493 71, 597 44, 545 125,066 42.2 27.5 23. 120, 422 101, 709 22, 776 124, 485 64, 203 51.6 5,220 5,220 13, 493 72, 635 46,210 124, 130 42.6 29.3 30. 123, 589 104,508 23,133 127, 641 65,562 51.4 5,588 5,588 13, 493 72,803 125, 214 41.9 28.6 Aug. 6. 124, 640 104, 696 24, 924 129, 620 66,455 51.3 6,451 6,451 13, 493 77, 365 50.673 128, 224 43.2 29.3 13. 125, 364 104,569 24,667 129,236 66,578 51.5 7,302 7,302 13,493 77,684 47,123 132, 342 43.3 29.5 20. 126, 718 105,906 24, 720 130,626 66, 527 50.9 7,319 7,319 13,493 78, 230 48, 287 132, 692 43.2 29.6 27. 121, 401 100, 762 25,000 125, 762 61,690 49.1 7,146 7,146 13,493 85,562 49.674 133, 969 46.6 33.0 Sept. 3. 129, 015 108,411 20,000 128, 411 65,443 51.0 7,111 7,111 13, 493 89,199 58,706 135, 126 46.0 35.7 10. 126,675 105,670 20,000 125,670 62,354 49.6 7,512 7,512 13, 493 85,189 50,706 137, 603 45.2 34.6 17. 132, 036 110, 955 20,000 130, 955 63, 057 48.2 7,588 7,588 13, 493 80,171 138, 860 42.7 32.0 24. 131, 815 111, 162 24,620 135, 782 62, 227 45.8 7,158 7,158 13, 495 79,138 46,109 140, 145 42.5 29.3 Oct. 1. 130, 306 109, 879 25,000 134, 879 61, 537 45.6 6,932 6,932 13, 495 84, 103 48, 420 141, 463 44.3 31.1 8. 128, 291 108,612 24,234 132, 846 60, 389 45.5 6,184 6,184 13, 495 87, 030 47, 819 143, 056 45.6 32.9 2 1 2 5 . . 1 1 2 3 8 1 , , 6 4 4 6 4 6 1 1 0 1 9 1 , , 0 8 6 8 3 8 2 1 0 9 , , 0 9 0 0 0 0 1 1 2 3 9 1 , , 0 7 6 8 3 8 5 59 7 , , 0 8 2 2 9 3 4 4 5 3 . . 6 9 5 5 , , 2 9 6 0 1 8 5 5 , , 2 9 6 0 1 8 1 1 3 4 , , 4 4 9 9 5 5 8 8 7 4 , , 9 4 4 3 6 2 47, 945 1 14 4 3 4 , , 0 8 0 7 1 1 4 4 5 4. . 3 8 3 3 5 3 . . 4 9 d Nov. 2 1 9 5 2 . . . 1 1 1 3 3 3 1 4 6 , , , 6 5 0 9 9 6 3 3 8 1 1 1 1 1 1 2 5 7 , , , 4 1 5 6 3 3 1 9 5 1 1 9 4 0 , , , 5 2 0 7 2 0 5 0 0 1 1 1 2 2 2 6 6 5 , , , 8 4 6 6 1 5 1 0 9 5 5 5 4 7 4 , , , 6 6 0 3 7 6 1 0 2 4 4 4 3 3 5 . . . 1 1 5 5 5 5 , , , 6 4 6 6 3 3 3 7 4 5 5 5 , , , 6 4 6 6 3 3 3 4 7 1 1 1 3 3 3 , , , 4 4 4 9 9 9 5 5 5 8 8 8 8 6 4 , , , 7 6 6 9 5 2 3 5 1 4 4 5 8 8 0 , , , 1 8 7 0 3 2 5 6 3 1 1 1 4 4 4 6 5 6 , , , 7 5 1 0 1 5 0 6 0 4 4 4 5 4 3 . . . 5 3 3 3 3 3 8 8 9 . . . 2 4 2 G M S O 3 19. 133,120 112,159 10,000 122,159 57, 378 47.0 5, 466 5,466 15, 495 81,706 44,109 144, 816 43.2 38.0 26. 134, 673 115, 499 10,000 125, 499 61,042 48.6 5,679 5,679 13, 495 82,750 44, 948 146, 492 43.2 38.0 M Dec. 3. 131, 875 113, 004 10,000 123, 004 57,920 47.1 5,376 5,376 13, 495 85,967 45, 933 146, 184 44.7 39.5 o 10. 129, 082 109, 978 9,831 119, 809 57, 734 48.2 5,609 5,609 13, 495 91, 643 47, 220 147,500 47.1 42.0 17. 131, 046 111, 814 9,873 121, 687 56, 025 46.0 5,737 5 737 13, 495 92,157 47,129 150, 399 46.7 41.7 23. 133, 974 115,282 10,000 125, 282 55, 853 44.6 5,197 5,197 13, 495 82, 237 37, 233 153, 552 43.1 37.9 30. 131,633 112, 886 10,000 122, 886 53, 288 43.4 5,252 5,252 13, 495 88, 525 39,806 155,162 45.4 40.3 1 Adjusted percentages are calculated after increasing or reducing reserves held by the amount of accommodation extended to or received from other Federal Reserve Banks. a W o d Cn Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

452 ANNUAL REPORT FEDERAL, RESERVE BOARD. FEDERALRESERVEBANKOrRlChMOHD.i MOVEMEMT OF EARHING ASSETS DURING1920. 25 ^^ ^^ ^^ ^^ ^^ UNITED STATES SECURITIES 25 25 in 1 PURCHASED t 100 80 'i "S—1 Ml 1 — 60 —• — -— 40 20 O PERCEtiTAdEOFlVARrAFER TO TOTAL DISCOUHT5 FOR BAHKSIft DISTRICT DISCOUNTED BILLS. (SEE HOTt BELOW) TOTAL EARHIH6 ASSETS JAR. FEB. MAR. APR. MAY JURE JULY AU6. SEPT OCT. NO/- DEC. (a) Paper secured by Government war obligations discounted for banks in district. (&) Total paper discounted for banks in district. (c) Total discounted paper held. Space between lines (b) and (c) represents paper rediscounted with other Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTKICT NO. 5 RICHMOND. 453 FEDERALRBSERVEMNKOFRICHMOnD NET DEPOSIT LIABILITY, u F.R.HOTE CIRCULATION CASH} RESERVESJPtDRESERVERATIOS11920. 70 70 60 60 SO so- S.. {** 40 30 \ 30 B 20 20 to 10 0 0 RESERVE PERCENTAGES. ACWAL'A", ADJUSTED *Bm SEEHOTE BELOW 75 i —T 1 r 1 1 1 1 r 1 1 1 \?5 SO HI i ij ft in 25 HI DEPOSIT LIABILITY F.R. NOTE CIRCULATION 250 22S 225 200 SO 2S \DEP0SITANDmN0T5UABILmES,'LANDr0TALmERVES;C\ f . \fEB\jnAR\APR.\MAr\jU?(E\f(JLY\AU6. \SEPT\ OCT.\NOV\DEC. Jfdjasted -percentages are calculated after wcreasitxg ar reducing reservesheld-by theauwtuttof*ajccomadabwn* extended 6o erreeecvedironvotfocr federal3leserFe$znJG5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.— Volume of paper discounted and bought. [In thousands of dollars.] Discounted paper. Purchased paper. Total discounted and purchased paper. Month. by S e G cu o r v e e d rn- Trade Bankers' Total. ment war accept- All other. Total. accept- 1920 1919 1918 1917 obligations. ances. ances. 1920. January 304,887 289,386 557 14,944 4,357 4,357 309,244 287,440 138,019 11,068 February . .. 264,322 247,302 506 16,454 4,085 4,085 268,407 279,178 126,350 11,991 March. 331,575 297,124 1,818 32,633 6,778 6,778 338,353 338, 680 158, 463 7 867 April.. . . . .. 295,077 270,845 907 23,325 5,485 5,485 300, 562 367,170 194,061 17,830 o May. 291 920 267,175 682 24,063 4,897 4,897 296, 817 370 925 133,796 28 951 June. 287, 363 242,023 1,798 43,542 3,502 3,502 290, 865 402 866 132,295 34,387 July 251,417 212,479 870 38,068 3,083 3,083 254,500 425,446 168, 654 38,383 August 265, 387 232, 952 675 31,760 4,706 4,706 270,093 388,492 174,826 31, 264 September 281, 012 231, 648 1,207 48,157 3,888 3,888 284,900 350,148 218,416 52,793 October 240, 870 202, 974 1,248 36,648 3,745 3,745 244,615 323, 993 228,948 31,077 November 241 259 202 170 1,071 38,018 3,388 3,388 244,647 267 886 286 603 62 525 December 291,233 242,012 1,337 47,884 3,797 3,797 295,030 381,696 270,180 127, 930 Total: 1920 3,346 322 2,938,150 12,676 395,496 51,711 51,711 3,398,033 1919 4 130 943 3,982 601 9,083 139,259 52,977 52,977 4,183 920 1918 .. 2,159,845 1,625,617 13,389 520,839 70,766 70,766 2,230,611 1917 1 402,968 56,253 3,160 343,555 53,098 53,098 1456,066 i Includes $1,747,294 of bill of lading drafts. w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT 3ST0. 5 RICHMOND. 455 SCHEDULE 4.—Earnings and expenses. 1920 1919 1918 1917 EARNINGS. Discounted bills $5,920,893 $4,099,953 $2,390,422 $418,629 Purchased bills 477,557 351,418 273,634 201,008 United States securities 276, 991 185,293 83,437 96,143 Municipal warrants 560 Deficient reserve penalties (including interest).. 216,559 125,192 122,654 31,362 Profits realized on United States securities 16,712 Miscellaneous "*ii," 270" ** 13,468" " 108," 901 5,595 Total earnings. 6,903,270 4,775,324 2,979,048 770,009 CURRENT EXPENSES. Expenses of operation: Assessments account expenses of Federal Reserve B oard 34,555 29,535 19,814 14,256 Federal Advisory Council (fees and traveling expenses) 546 736 150 432 Governors' conferences (including traveling ex- 401 254 210 337 Federal Reserve agents' conferences (including traveling expenses) 125 43 321 168 •Salaries- Bank officers 105,945 74,796 48,455 33,200 ClericalstafT 617,525 326,746 173,118 35,303 Special officers and watchmen 15,066 7,497 4,868 700 All other 34,749 16,283 5,008 1,882 Life insurance premiums (employees' group insurance) , 4,008 Directors'fees 3,925 3,400 3,320 3,020 Per diem allowance 740 820 680 1,230 Traveling expenses , 1,653 1,999 1,218 1,806 Officers' and clerks' traveling expenses , 26,248 8,689 3,015 669 Legalfees , 1,070 570 1,122 500 Rent. 10,139 7,941 5,206 5,807 Taxes and fire insurance 9,699 11,452 1,823 2,629 Telephone 3,415 2,447 2,110 685 Telegraph 27,604 10,032 2,960 657 Postage 63,415 48,262 45,519 5,210 Expressage 948 9,767 4,116 Insurance and premiums on fidelity bonds 11,724 9,718 8,464 2,202 Light, heat, and power 7,460 5,093 6,648 820 Printing and stationery 84,345 39,083 36,516 9,723 Repairs and alterations 12,395 11,393 12,275 11,296 Currency shipments to and from member and nonmember banks and between the Federal Reserve Bank and its branch 28,432 41,504 Currency shipments (other than Federal Reserve and Federal Reserve Banknotes) to and from Washington or a subtreasury 14,674 Allother 23,688 21,008 15,680 4,683 Total expenses of operation 1,144,494 682,110 408,267 141,095 Cost of Federal Reserve currency (including shipping charges) 170,101 119,347 118,822 58,903 Miscellaneous charges, account note issues 45,749 28, 582 6,700 3,626 Taxes on Federal Reserve Bank note circulation 52,605 32,468 Furniture and equipment 103,126 49,420 91, 786 25,726 Bank premises 18,245 28,435 Total current expenses. 1,516,075 911, 927 643,820 257,785 Current net earnings... 5,387,195 3,863,397 2,335,228 512,224 PROFIT AND LOSS ACCOUNT. Earnings 6,903,270 4,775,324 2, 979,048 770,009 1,516,075 911, 927 643, 820 257, 785 Current expenses Current net earnings 5,387,195 3,863,397 2,335,228 512,224 Additions to current net earnings on account of— Amounts previously reserved for depreciation on United States bonds 58,606 Reversal of entry of Dec. 31,1919, account expenses Federal Reserve Board 25, 531 All other 5, 859 940 11, 664 Total i 5,418,585 3,922,943 2, 335, 228 523, 888 i Credit. 45525°—21 30 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

456 ANNUAL REPORT FEDERAL RESERVE BOARD. SCHEDULE 4.—Earnings and expenses—Continued. 1920 1919 1918 1917 PROFITS AND LOSS ACCOUNT—continued. Deductions from current net earnings on account of— Bank premises $170,000 $20,000 $10,000 Assessment account expenses Federal Reserve Board, January-June, 1920 25,531 Increase in depreciation reserve on United States bonds 5,865 13,198 $50,000 All other . 4,214 146 Total deductions 180, 079 45,677 23,198 50,000 Net earnings available for dividends, surplus, and franchise tax. . .. . .. 5,238, 506 3,877,266 2,312,030 473, 888 Dividends paid 293, 052 252, 872 232, 432 240, 944 Transferred to surplus fund 4,740, 869 3, 624, 394 1 2,079, 598 116, 472 Franchise tax paid United States Government 204, 585 116, 472 5, 238, 506 3, 877, 266 2, 312, 030 473, 888 i Includes $1,039,799 reserve for Government franchise tax transferred to surplus fund in 1919. SCHEDULE 5.—Currency receipts from and shipments to member and nonmember banks. [In thousands of dollars.] Receipts. Shipments. Total receipts. Total shipments. Month. m b F e a r m n o k m b s e . r m b F n e a r m o n o n k m b - s e . r m b e a T m n o k b s e . r m b n e a T m o n o n k b - s e . r 1920 1919 1920 1919 January 20, 893 156 21,049 24,463 9,649 8,020 February 11, 763 292 13, 743 12, 055 13,560 13, 789 10,005 March 13, 442 382 15, 497 13,824 13, 295 15, 535 9,452 April.... 15,483 1,090 18, 438 16, 573 15, 936 18,450 May 15, 378 813 16,803 16,191 15,117 16, 824 9,267 June 15, 267 747 19, 938 16, 014 13,213 19, 957 9,604 July 13, 910 845 21, 173 14, 755 13,673 21,186 11, 224 August 13, 204 764 23,208 13,968 10,360 23, 221 14,506 September 12, 488 768 i 25, 936 13,256 8,526 25,942 22, 761 October 14, 244 804 28,172 15,048 11,182 28,186 34,882 November 16,918 1,593 23,528 18,511 12,351 23,541 17,688 December 20,697 2,558 26,696 23,255 17,600 26,738 21,504 Total: 1920. 183,687 10, 812 242, 761 257 194,499 243,018 1919 168,273 1,003 176,976 345 169,276 177,321 1 Exclusive of $960,000 shipped to a member bank in another Federal Reserve District. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5 RICHMOND. 457 SCHEDULE 6.—Operations of check clearing and collection department. [In thousands of dollars.] Items drawn on banks in own district. Items drawn on Treas- Located in Federal Located outside Fed- urer of United States. For month ending 15th of— Reserve Bank and eral Reserve Bank branch cities. and branch cities. Number. Amount. Number. Amount. Number. Amount. January 271, 855 392, 098 1, 740, 406 362,100 36, 748 9,920 February 240, 018 354, 240 1, 534, 701 304, 923 66, 832 15.164 March 277, 707 333, 077 1, 741, 268 310, 098 75, 362 14,122 April 304, 457 2,201, 363 399, 389 99, 886 18,340 May 342,120 2,176, 707 368, 258 108, 042 14, 303 June 284, 526 361, 861 2,122, 419 370, 390 90, 677 20,681 July 282, 461 354, 482 2, 066, 112 384, 189 96,133 22,223 August 281,542 334, 569 1, 936, 384 77, 475 14,962 September 289, 884 361,187 2,124, 351 378, 485 84, 942 20,699 October 309, 407 375, 940 2, 251, 590 403, 315 95, 878 16, 785 November 313, 415 371, 480 2, 273, 127 400, 608 106, 789 23,389 December 300, 112 347, 962 2, 770, 589 436, 481 99, 216 15.165 Total: 1920 3, 444, 418 4, 315,342 24, 939,017 4, 486, 918 1, 037, 980 205,753 Items forwarded to s o e t r h v e e r F B e a d n e k r s a l a R n e d - Total, 19201 For month ending 15th of— their branches. Number. Amount. Number. Amount. January , 250,104 195,698 2, 299,113 959, 816 February 229, 233 174, 495 2,070, 784 848, 822 March 254, 045 166, 795 2, 348, 382 824, 092 April 288, 954 196, 302 2, 894, 660 1,000, 357 May 273, 517 186, 816 2, 847, 300 911, 497 June 194, 088 2, 766, 867 947, 020 July 262, 201 2, 706, 907 964, 699 August 259, 640 203, 032 2, 555, 041 921, 245 September 266, 909 195, 455 2, 766, 086 955, 826 October 285, 903 209, 855 2, 942, 778 1,005, 895 November 286, 550 195, 446 2, 979, 881 990, 923 December 306, 679 180, 328 3, 476, 596 979, 936 Total: 1920 3, 232, 980 2, 302,115 32, 654, 395 11,310,128 Exclusive of duplications on account of items handled by both parent bank and branch. 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. Probably never in the history of this country has its financial structure been so severely tried as during 1920, certainly the Federal Reserve System has received a most severe test, and has successfully performed the functions for which it was inaugurated. During the early months of the year prices continued high and there was a growing disposition on the part of the buying public to purchase more conservatively. This, together with the increasing production, brought about a restraining influence on the advancing prices, with the result that prices began to show evidence of declining in the early summer, and at the end of the year there was a considerably lower level. It must be remembered that during 1919 the demobilization of those in the country's service was taking place, but the larger number were still consumers, and it was not until the early part of 1920 that a large majority became producers. With production increased and the export demand limited, the price of farm products declined rapidly. This was particularly noticeable in cotton, with a prevailing price of approximately 39J cents on the New York market December 31, 1919, as compared with 14f cents on December 31, 1920. Ordinarily the cotton crop throughout the district is largely marketed in the fall months. During the 1920 season only a small part of the cotton had been marketed up to the close of the year on a declining and very inactive market. One of the causes of the decline in the price of cotton was the carrying over of about 4,000,000 bales of low-grade cotton which could not be manufactured in this country. The early part of the year textile manufacturers were running on two or three shifts, and in this the seeming consumption of cotton was continuous and regular. However, when the price began to decline commission merchants with large stocks of cotton goods began to throw them on the market; this, in turn, absorbed the orders that otherwise would naturally have been received by the mills. This condition of affairs placed the mills in the position of not having their quota of orders and forced a slowing up of production, hence they were not in the market for the present crop of cotton. Stocks of cotton goods are now fast disappearing and the mills are opening up and raw cotton is coming more in demand. This same condition was reflected to a more or less extent in commodities and products other than cotton, 458 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6—ATLANTA. 459 REVIEW OF SERVICE AND ACTIVITIES. During the year 1919 a larger number of member banks than ever before had availed themselves of the Federal Reserve Bank service, but the year 1920 saw a more general call for the performance of all of its functions, particularly in the matter of loan accommodations. The continued growth of the Federal Reserve System par list caused a larger number of member banks to take advantage of our check clearing and collection facilities, resulting in the creation of balances in excess of required reserves, which were drawn upon by orders for the shipment of currency or the transfer of funds to other points for the requirements of member banks. Of a total membership of 462 banks during the year, 372 availed themselves of the discounting privilege. The number of bills handled was 112,125, aggregating $2,615,617,401.60. During the year the total number of checks handled in the clearing departments of the parent bank and its branches was 3,317,079, amounting to $2,729,236,456.99. The number of out-of-town items handled was 12,375,290, amounting to $2,490,307,827.59. The practice of absorbing the shipping costs of currency forwarded to member banks and currency remitted by member banks for credit was continued. This service was broadened during the year by the adoption of the policy of also absorbing the shipping charges on subsidiary silver and minor coin sent to member banks and by making currency shipments to member banks at the request of other member banks. The aggregate amount of currency and coin furnished the member banks was $247,885,157. The wire transfer of funds, without telegraphic cost to the member bank for whose account made, was continued in effect, and the privilege was used most freely, the total amount of such transfers being $924,864,635.58. FINANCIAL RESULTS OF OPERATION. Schedule No. 1 shows a comparative statement of condition of the Federal Reserve Bank of Atlanta for the 12 months ending December 31, 1917, 1918, 1919, and 1920.. It will be noted from this statement a gradual increase is shown in all items over the previous year, from 1917 to 1919; however, in 1920 the total resources show a decrease of approximately $5,000,000. This is due almost entirely to the decrease in reserve deposits of member banks. Schedule No. 4 shows a comparative statement of earnings and dividends for each 12 months' period ending December 31, 1917, 1918, 1919, and 1920. A marked increase in earnings is shown each year. During the year 1920 the net earnings of the Federal Reserve Bank of Atlanta were $6,010,324.13. DISCOUNT OPERATIONS. Discount operations for the calendar year 1920 have shown a marked increase in activity over the preceding year 1919, both as to number of items handled and amounts. A great majority out of 462 member banks in this district have had paper continuously under discount during the year. The maximum Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

460 ANNUAL REPORT FEDERAL RESERVE BOARD. was reached during the month of November, when a total of 335 banks were accommodated, as compared with 265 during the month of June, 1919, which was the highest number accommodated during the preceding year. BANKERS7 AND TRADE ACCEPTANCES. While there has not been any considerable increase in the use of trade acceptances in the district during the past year, the growth has been steady and of a more healthy nature than in the past, due to the fact that to discourage the improper use of such trade paper, the Federal Reserve Bank of Atlanta has more closely scrutinized this class of paper and been more rigid in compelling strict compliance with the regulations laid down by the Federal Reserve Board. In view of the extraordinary demands made upon the Federal Reserve Bank of Atlanta, and the somewhat extended condition of a number of member banks, practically no work was done looking to an extension of open-market operations. Under a more stabilized influence it is hoped that the work of building up an open market for acceptances may be enlarged. RESERVE POSITION. A comparison of the reserve position as it stood during the early part of 1920, and the low point which it reached in the autumn, tells its own story of the service of the Federal Reserve Bank of Atlanta to its member banks and the Federal Reserve System. Because of the liquidation taking place during the latter part of 1919, and the large reserves maintained by member banks by reason of their increased deposits, the year 1920 was commenced with an actual reserve percentage of 51.8 per cent, the second highest of all the Federal Reserve Banks, and at the same time rediscounts for the Federal Reserve Bank of Boston amounted to over $5,000,000, giving an adjusted reserve position of approximately 54 per cent. The first week in the year snowed still further liquidation of loans and increases in member banks7 reserve deposits, which permitted an increase in the accommodations extended to other Federal Reserve Banks to $7,000,000, and at the same time showed an actual reserve percentage of 53.7 per cent, or an adjusted percentage of 57.1 per cent, if no rediscounts for other Federal Reserve Banks had been made. While the end of the second week showed the actual reserve position to be 49.5 per cent, the adjusted position was further improved and showed as 60.3 per cent, the lowering of the actual reserve position having been occasioned by the fact that accommodation extended to the Federal Reserve Banks of New York, Philadelphia, and Richmond had reached a total of $22,000,000. During the following five weeks period the actual reserve position showed very little fluctuation, and the rediscounts for other Federal Reserve Banks ranged between $14,000,000 and $20,000,000. Dur- # ing the next eight weeks period the reserve deposits of member banks declined, and while the actual reserve position remained practically stationary around 47 per cent, the large amount of rediscounting for other Federal Reserve Banks that had been taken care of previously could not be continued, although during the period varying amounts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6 ATLANTA. 461 were rediscounted for Boston, New York, Philadelphia, and Richmond. From the latter part of April until the middle of May the reserve deposits of member banks declined further, and credit accommodation to member banks increased, and while, as a result the actual reserve position declined, it was not until May 13 that it was found necessary to rediscount in order to maintain an actual reserve position at 40 per cent, and this was done to the extent of $2,000,000 with the Federal Reserve Bank of New York. During the following three months the individual deposits with member banks were heavily drawn upon for crop-making purposes, making it necessary that credit extension to member banks be materially increased for the replenishment of their reserve deposits required to be maintained with this bank, and in addition, the continued labor troubles at New Orleans, the principal port city of the district, made necessary increased advancements to member banks in that city to aid in financing the carrying of goods, destined for export, that rapidly accumulated because of the paralysis in the movement of vessels due to the dock strikes. The crop-making operations in that section of the district also contributed to the already heavy burdens upon New Orleans member banks. These factors made it necessary to call further upon other Federal Reserve Banks for rediscount accommodation, and on August 6 the Boston, New York, and Cleveland Reserve Banks, which had rediscounted in varying amounts at different times during the period, were rediscounting a total of approximately $28,000,000 for this bank, giving an actual reserve percentage at that time of 40.9 as against an adjusted one of 26. The subsequent few weeks saw further diminution of individual deposits, as they were withdrawn for financing the final touches in the making of the new crop and the payment of labor incident to the harvesting, and this was accompanied by an increased demand for rediscount accommodation, making it necessary by the middle of September, when the marketing of the new crop should normally have been fully under way, that rediscounts with other Federal Reserve Banks continue to ascend to the total of $31,700,000, so that the actual reserve position at that time was 40.2 per cent, and upon adjustment showed 23.4 per cent. The rapid decline in the prices of cotton, rice, sugar, peanuts, naval stores, and live stock, as well as the recession in prices of other commodities, individually of minor consideration, but collectively of large volume, which was accompanied by little or no demand, caused a general stagnation of marketing and a consequent inability on the part of the interior merchants and general supply stores to make collections for materials and supplies furnished in the making of the crops. This in turn deprived the wholesalers, the jobbers, and the fertilizer manufacturing concerns, located at central points, of the collections usually enjoyed in the early fall and liquidation on their part became impossible. The situation brought about by these circumstances was considerably aggravated by the disinclination of the buying public to make purchases from the retailers of the highpriced goods with which their shelves were stocked in anticipation of fall business, the consumer in the interior sections having well nigh exhausted his credit, and having sold little or none of his production, had no cash, and, therefore, could not buy; and in the cities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

462 ANNUAL REPORT FEDERAL RESERVE BOARD. those who had abundant credit or cash with which to make purchases, held off under the belief that a lower level of prices would prevail after the holiday season. The decline of deposits with member banks continued, and in many cases funds that had been deposited at interest were withdrawn to be loaned to friends or relatives at a higher rate of interest, being borrowed by the latter, to enable them to hold their crops for better prices. The September income tax payments were also responsible Tor considerable withdrawals, as well as additional loans. To care for the increased credit demands of member banks for the upbuilding of reserves, and the transfer to other districts of the excess amount of the Government's income tax receipts over the Government's requirements within this district, and to aid in the gradual marketing of the crops produced in our district, additional rediscounting became necessary, the peak of which was reached on September 28 and amounted to $49,491,000, the actual reserve percentage on that date being 40.85 per cent, as against an adjusted one of 14.9 per cent. The succeeding month saw only a slight movement of crops and a continued lowering of deposits with member banks, but notwithstanding the increasing borrowings of member banks, which reached the high total on October 30 of $182,000,000, the actual reserve position of this bank on that date was 40.2 per cent after rediscounting with other Federal Reserve Banks to the extent of only $37,000,000, a reduction of about $12,500,000 from the high total, and giving an adjusted reserve ratio of 23.7 per cent. The following month did not bring any material change in conditions, and the reserve position remained fairly stationary. During the early part of November loans to member banks receded slightly, but the latter part of the month they increased to the previous high point of $182,000,000, which caused an upward trend in rediscounts with other Federal Reserve Banks to $42,800,000, the actual reserve ratio on November 27 being 40.3 per cent, and as adjusted 22.2 per cent. While during the last month of the year no appreciable marketing of cotton, rice, naval stores had gotten under way, sugar, peanuts, citrus fruits, and vegetables moved to some extent, which coupled with a fairly brisk holiday trade in the cities and the beginning of the seasonal tourist travel, brought about a slight liquidation, the loans on the last day of the year being $170,000,000, at which time rediscounts with other Federal Reserve Banks amounted to $34,000,000, leaving an actual reserve ratio of 41.4 per cent, and an adjusted one of 25.7 per cent. MOVEMENT OF MEMBERSHIP. National hanks.—During the year the national bank membership increased from 363 members to 375 by the addition of 15 new national banks organized in the district and the surrender of stock by 3 member national banks; one of these having liquidated and two having consolidated with other national banks, the net increase in the number of national banks for the year being 12, as compared with a net decrease of 9 national bank members for 1919. State banks.—The State bank and trust company members increased from 64 to 87 by the allotment of stock to 24 new members Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6 ATLANTA. 463 and the surrender of stock by one member State bank, which consolidated with a nonmember State bank, resulting in a net increase of 23 State bank and trust company members, as compared with a net increase of 10 for 1919. TRUSTEE POWERS. During the year fiduciary powers, under section 11, subsection (k) of the Federal Reserve Act, were granted to 19 national banks and supplementary powers granted to 2 national banks, bringing the total number of banks in the district that have been granted authority to act. in a fiduciary capacity up to 65. There has been a growing disposition on the part of officers of national banks to avail themselves of all the privileges permitted under the laws and to equip their banks to handle any business that may come to them. ACCEPTANCE UP TO 100 PER CENT. The total number of banks authorized to accept up to 100 per cent is 32, permission having been granted to four during the year. Approximately 60 per cent of the number are located in reserve cities, where more use is made of this form of financing in order to handle foreign transactions. EXAMINATIONS. The policy of participating with State examiners in the examination of State bank members has been pursued during the year, and the bank departments of the several States in the district have given their hearty cooperation. These joint examinations are being made in thorough accord and harmony with the State bank examiners, and the member banks have offered every facility to expedite the examination where the Federal Reserve Bank has participated. During the year 24 examinations were made of State banks that applied for and were admitted to membership, and the Federal Reserve examiners participated with State bank examiners in 71 State bank and trust company examinations. Fifteen of the banks examined have total resources exceeding $5,000,000. MEMBER BANKS' RESERVE ACCOUNT. A gradual but very perceptible reduction in member banks7 reserve balances has been noticeable throughout the greater part of the year, reflecting the gradual shrinkage which occurred in their own deposits during the same period. Reserve deposits were highest in the month of January, when they reached $60,404,000, and lowest in October, when they were reduced to $44,455,000, but the average for the year as compared with the previous year shows an increase of approximately $5,000,000. Wire transfers of funds made to and received from other Federal Reserve districts for account of our member banks increased in number, but decreased in amount, the number received being 9,729, amounting to $451,546,000, while 8,381 transfers were sent, amounting to $278,855,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

464 ANNUAL REPORT FEDERAL RESERVE BOARD. FISCAL AGENCY OPERATIONS. The fiscal agency operations of the Federal Reserve Bank of Atlanta for the year 1920 were somewhat greater in total volume as compared with the year 1919, due primarily to the exchange of permanent for temporary bonds. SALES OF TREASURY CERTIFCATES. Eighteen series of Treasury certificates of indebtedness were issued during the year; eight loan series, four maturing in 1920 and four maturing in 1921, and ten tax series, two in anticipation of income and profits taxes payable in 1920, and eight in anticipation of the same classes of taxes payable in 1921. DEPOSITS AND WITHDRAWALS OF TREASURY FUNDS. The Secretary of the Treasury continued the established practice of permitting depositary banks to pay for certificates of indebtedness by credit in special deposit accounts, the purpose being to provide for the gradual withdrawal from the banks of the funds paid to them by subscribers for certificates of indebtedness, and the funds representing payment of their subscriptions of the same character. INTERCHANGE AND EXCHANGE OF GOVERNMENT SECURITIES. During the year 1919 the holders of bonds and certificates of indebtedness were permitted to make exchanges of coupon for registered and registered for coupon, as well as the interchange of denominations and the conversion of bonds, which operations reached large proportions. During the year 1920, the same privileges were extended and exercised in greater proportions and augmented by the exchange of temporary for permanent bonds. SALE OF WAR SAVINGS SECURITIES. The organization having direct charge of all activities for the promotion of the sale of Treasury savings securities during the year known t as the war loan organization, was the same as for the year 1919. The sale of the securities was not as great as in the previous year, the total sales by the Federal Reserve Bank, which of course does not include sales made by postmasters throughout the district, amounting to $317,346.75. WAR FINANCE CORPORATION. The transactions engaged in by this bank acting as fiscal agent for the War Finance Corporation were confined entirely to the payment for its account of War Finance Corporation bonds, which matured on April 1, 1920, and coupons, which matured October 1, 1919, and April 1, 1920, and to the collection of maturing securities which had been purchased by the corporation in this district. The aggregate of bonds redeemed was $1,414,000, coupons paid $40,550, and securities collected $18,898,500. NOTE ISSUES. Federal reserve notes.—The outstanding Federal Reserve notes at the close of business December 31, 1920, were $179,760,000, as compared with $160,108,000 at the close of business December 31, 1919, or an increase of $19,652,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6 ATLANTA., 465 During the year the Federal Reserve Agent issued notes amounting to $196,035,000, which included payments to the Treasurer of United States in Washington, aggregating $49,280,000, and $40,067,000 issued to Federal Reserve Bank for shipment to Habana, Cuba, at the request of the Federal Reserve Bank of New York for account of its member banks. The amount of fit money redeemed by the Federal Reserve Agent during the year was $90,890,000, and there was shipped to the Comptroller of the Currency for redemption unfit notes aggregating $85,- 493,000, making the total redemption of fit and unfit Federal Reserve notes $176,383,000 for the year. The total amount of Federal Reserve notes issued to the Treasurer in Washington, including the amount shipped to Cuba, was $89- 347,000, while the outstanding Federal Reserve notes at the close of December 31, 1920, had increased only $19,652,000 over the amount outstanding December 31, 1919. This small increase, when considering the amounts paid to the Treasurer and shipments to Cuba, is largely due to the fact that there were not the usual seasonal demands for crop moving, it being estimated that approximately only 25 or 30 per cent of the agricultural products for 1920 had been marketed up to the close of the year. Federal Reserve Bank notes.—The amount of the Federal Reserve Bank notes outstanding at the beginning of the year was $15,777,600; during the year $16,916,000 were issued, and the redemption amounted to $16,523,800, with a balance of $16,169,800 outstanding at the close of the year, or an increase of $392,200. The amount of Federal Reserve Bank notes in actual circulation at the close of December 31, 1920, was $15,174,950, as compared with $15,561,300, or a decrease of $386,350. The demand for currency in small denominations in the Sixth Federal Reserve District during the past 12 months has been exceedingly heavy, and, in addition to the Federal Reserve Bank note circulation of $1 and $2 denominations, there were received during the year from the United States Treasurer approximately $3,000,000 of United States notes. POSITION OF COMMERCIAL BANKS WITH REGARD TO FINANCING. In our last annual report we called attention to the fact that the commercial banks were called upon to make up the full quota of the district by the purchase of Liberty bonds, Victory notes, and Treasury certificates of indebtedness, which very materially encroached upon their resources for handling commercial business. This condition still exists, and in addition thereto the enormous increase in price of all commodities which our people had to purchase and the increase in price of labor, added to the burden of a year ago which the banks were called upon to finance, made it necessary in many instances for the commercial banks to accommodate their customers of long standing in order that they might carry on their various enterprises at the new high level of prices and costs. This condition existed up to the maturity of our crops, when the inevitable deflation set in over the country. The prices of commodities produced in this district (being practically all agricultural products) declined more Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

466 ANNUAL REPORT FEDERAL RESERVE BOARD. rapidly than almost any other products of the United States. The decline was so rapid and unexpected by the producers that a determined effort set up on the part of the producer to hold his products for better prices, and this condition still exists. The commercial banks are not in position to force the collection of their loans by reason of this concerted action on the part of all producers to endeavor to hold their products for more reasonable prices. We are informed by the officers of our member banks and by citizens who are interested that quite a lot of our commodities will be placed on the market within the next 90 days. This being true, there should be considerable liquidation of obligations now outstanding, and the amount of money needed for incoming production will thereby be very materially reduced from previous years, due to the determination of those who produce the crops to economize to the fullest extent in the production for the coming season. This statement already shows the cause of the increase in the obligations of the commercial banks at this time. During the early part of 1920 nearly all of the banks in this district were at high tide in deposits, and they employed quite a lot of their funds in the purchase of commercial paper, which was bought in large volumes by small banks. Most of this paper matured in the summer and early autumn, and the proceeds from the liquidation of this paper were used for caring for maturing crops which had not been marketed to any great extent. OPERATION OF FEDERAL RESERVE BANK BRANCHES. The volume of business transacted by our New Orleans, Birmingham, Jacksonville, and Nashville branches during the past year T which is included in the total transactions of the bank, shows a large increase. The New Orleans branch, the only one of our branches to which has been delegated the same powers, with the exception of capital stock and open-market transactions, as exercised by the parent bank, was called upon to function to a higher degree than ever before. The total of rediscounts made for and advancements made to member banks located within the New Orleans zone was approximately $709,400,000. Currency receipts and shipments amounted to $93,909,000 and $76,224,000, respectively. In the matter of check clearings and collections, a total of 2,791,000 items was handled, amounting to $1,215,294,000. The aggregate of rediscounts for and advancements to member banks located in the zone of the Birmingham branch was $79,953,000. Currency receipts and shipments amounted to approximately $47,891,000 and $36,691,000, respectively. The total number of checks handled for clearing and collection was 2,808,036, having a value of $1,139,355,000. It will be noted that in the exercising of transit functions this branch handled a slightly greater physical volume of business than the New Orleans branch, but in the total value the aggregate was about $40,000,000 less. Rediscounts for and advancements to member banks located in the zone of the Jacksonville branch amounted to a total of $99,296,000. Currency receipts and shipments amounted to approximately $45,480,000 and $33,856,000, respectively. The number of items Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6 ATLANTA. 467 handled for clearing and collection was 2,507,799, amounting to $606,091,000. Rediscounts for and advancements to member banks located in the zone of the Nashville branch amounted to $665,496,000. Currency receipts and shipments amounted to $27,449,000 and $21,862,000, respectively. In the clearing and collection of items this branch handled a greater physical volume than any of our other branches, the total number being 3,474,519, but the amount thereof, $897,591,000, did not equal the total value of the smaller number of items handled respectively by the New Orleans or Birmingham branches. The Savannah agency was also called upon for much greater services than in the past. While in the matter of currency transactions there was no material increase, the volume of collateral deposited with the agency, in connection with bills discounted for and purchased from Savannah member banks by the parent bank, increased considerably, and as a result the service rendered by the agency was more frequent and more widely distributed. CLEARINGS. During the year 1920 there was a steady increase in the number of items handled, as well as amounts, up to and including July 1, but, due to the general depression in business, a slight decrease is shown thereafter. The total number of items handled was 16,572,303, against 14,255,861 for 1919, an increase of 2,306,442, or 17 per cent, at a cost of $0.0155 for 1920 against $0.0119 for 1919, an increase in cost per item of $0.0036. The total volume of business for 1920 aggregated $5,381,312,000, against $5,487,105,000 for 1919, a decrease of $105,793,000, or 1.9 per cent. The cost per thousand dollars for 1920 was $0.0477 as against $0.0307 for 1919, an increase of $0.0170. The transit department has functioned with increasing efficiency during the past year. While temporarily restrained, by court order, from effecting collection of checks drawn on nonmember banks in this district at par, an increase of 35 member banks and 53 nonmember to the par list during 1920 was shown. COLLECTIONS. The collection department continues to show a steady increase. During 1920 it handled 49,694 items, as compared with 21,821 for 1919, an increase of 27,873, or 127 per cent. The amount of collections received during 1920 aggregated $89,911,329.48, as compared with $52,966,504.47 lor 1919, an increase of $36,914,825.01, or 69 per cent. These items are being handled free of charge for member banks except where a charge is made by the collecting bank. GOLD SETTLEMENT FUND. Total transactions through this fund for 1920 aggregated $6,346,- 838,000, of which $3,177,478,000 represented payments by us to other Federal Reserve Banks, whereas $3,169,360,000 represented payments by other Federal Reserve Banks to us, the total indicating an increase of approximately 100 per cent over 1919. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

468 ANNUAL REPORT FEDERAL RESERVE BOARD. TREASURER'S GENERAL ACCOUNT. Coupon redemption for the account of the Treasurer indicate a slight falling off as compared with 1919. The total number of pieces aggregated 2,156,557 coupons, amounting to $10,773,123.37. Checks and warrants cashed for the year amounted to 286,347 pieces in the sum of $82,860,198.07. The Treasurer has requested 25 transfers from us to other Federal Reserve Banks for his use, amounting to $41,500-000, and has made 76 transfers from other Federal Reserve Banks to us, amounting to $81,500,000, thus indicating an excess of expenditures in this district for the account of the Treasurer over receipts of $40,000,000. SCHEDULE 1.—Statement of condition as of Dec. 31. 1920 1919 1918 1917 RESOURCES. Gold coin and certificates in vault $8,744,466.49 $8,412,807. 62 $7,987,378.42 $5,717,322.72 Gold settlement fund 7,442.406. 46 19,333,518.51 6,302,193.45 12,482,000.00 Gold with foreign agencies 118, 800. 00 4,727,527.61 174,866.23 1,575,000.00 Gold with Federal Reserve agent 60,709, 940. 00 63,503,220.00 42,179,185. 00 50, 701, 320.00 Gold redemption fund 10,297, 580.39 7,940,425.13 6,957, 760. 00 1,119,140.98 Total gold reserves 87,313, 193. 34 103,917,498.87 63,601,383.10 71,594,783.70 Legal tender notes, silver, etc 2,026, 593,00 990, 711. 30 237, 243.50 415, 715.00 Total reserves 89,339,786. 34 104,908,210.17 63,838,626.60 72,010,498.70 Bills discounted: Secured by Government obligations. 61,439,901.62 66,391,635.09 54,171,028.61 2,124,250. 76 All other 71,161,100. 39 26,660,232.73 29,864,482. 32 12,903, 420. 00 Bills bought in open market 3,570, 950. 74 16,639,000.16 12,514,685.61 6, 497, 061.67 Total bills on hand 136,171, 952. 75 109,690,867.98 96,550. 196. 54 21, 524, 732. 43 Municipal warrants ... 13, 000. 00 284, 372. 00 United States Government bonds 113,650.00 375,300. 00 553,750. 00 2,397, 000. 00 United States Victory notes 2, 800. 00 3,900.00 United States certificates of indebtednes. 16,672,489. 88 15,665,846.00 16,066,000.00 21,491,000.00 Total earning assets 152,960,892. 63 125,735, 913. 98 103,182, 946. 54 25,697,104.43 Banking house 541,272.96 463,301. 88 217,000. 00 140,875.20 Uncollected items and other deductions from gross deposits 31,406,141.22 48,266,919.24 36,019,925.51 21,785, 720. 46 Five per cent fund against Federal Reserve Bank notes 560,586.15 878,550.00 310,690.00 All other resources 381,421. 62 147,276.06 484,127. 32 74,333. 74 Total resources 275,190,100. 92 280,400,171. 33 204,053,315.97 119,708,532. 53 LIABILITIES. Capital paid in 4,053,050.00 3,428,200.00 3,191,350.00 2,812,750.00 Surplus 8,343,465.31 4,695,000.00 775,000. 00 40,000.00 Government deposits 3,715,581. 57 2,706,991.38 2,839,711. 85 4,476,782.74 Due to members—reserve account 49,172,496.66 58,388,305. 76 46,222,851.15 36,849,923. 90 Deferred availability items 20,360,019.53 37,130,967,83 23,308,473.07 10,074,908.35 Other deposits, including foreign Government credits 302,491. 32 2,778,585.38 214,887. 51 374,627.61 Total gross deposits 73,550,589.08 101,004,850.35 72,585,923.58 51,776,242.60 Federal Reserve notes in actual circulation 173,406,190.00 155,510,935.00 120,672,430.00 64,914,890.00 Federal Reserve Bank notes in actual circulation 15,174,950.00 15,561,300.00 5,816,600.00 All other liabilities 661,856. 53 199,885. 89 1,012,012.39 164,649.93 Total liabilities 275,190,100.92 280,400,171.33 204,053,315.97 119,708,532.53 i Including 1-year Treasury notes. 2 One-year Treasury notes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6 ATLANTA. 469 i FEPERALRKERVEBANKOFATLAnTA. i MOVEMENT OF EARNING ASSETS i DURING 1320. UNITED STATES SECURITIES PURCHASED BILLS HELD 100 so 60 40 20 PFRCEHTA6E OF WAR PAPER TO TOTAL DISCOUNTS FOR BANKS IH DISTRICT 200 IPS DISCOUNTED BILLS. (SEE HOTEBELOW) 175 ISO IBS 100 PS SO 25 JAN. FEB. MAR. APR. MAY JUHt JULY AU6, SEPT OCT. NOV. DEC. A .Jbytcrsecured by doyanwien^Jf^OU^aiions discoant&librJBantis in District. B:JaaLjfaiterdiscoajidBdi&r&uitoui&strict, CJotol $ucountsJhfitrheld,, Spa^bebveeKluusBiadCb k ^ U B P d i t i & ib Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—Movement of principal asset and liability items during 1920. [Amounts in thousands of dollars.] Discounted bills. Purchased bills. Reserve percentages. Discounted for member banks in this district. Federal Date. e a a T s r s o n e t i a t n s l g . T he o l t d a . l c R F R o o e w e u e t d s h i n d e e t e r t i h r e s v r a - d e l A. Sec B u . red m i c n h P a o a r u s p k r e e e - d n t. R F c o f e e h P r t d s o a u h e e s m e r r e r - v r a d e l T he o l t d a . l U S s i e t n t i c a i e u t t s e e r . s d - re T s c e a o r s t v a h e l s. Net n R c o i t e r i t c s o e e u n s r l v . a in e - Actual. jus A te d d - .i d Banks. by Gov- Per cent Banks. Total. w er a n r m o e b n li t - (B+A). gations. Jan. 2 120,994 88,724 2 5,000 83,724 70.3 11,161 5,065 16,226 16,044 105,679 50,049 154,112 51.8 56.7 9 116,718 90,787 2 7,000 83,787 60,645 72.4 9,887 9,887 16,044 109,218 52,761 150,613 53.7 57.1 16 i24,797 99,091 ^22,000 77,091 58,733 76.2 9,882 9,662 16,044 99,923 57,326 144,704 49.5 60.3 23 124,716 2 19,500 79,669 61,218 76.8 9,503 9,503 16,044 97,694 57,162 142,770 48.9 58.6 30 125,575 2 15,000 83,433 58,749 70.4 11,098 11,098 16,044 96,880 57,772 142,090 48.5 56.0 Feb. 6 125,607 97,177 2 14,040 83,137 58,103 69.9 12,648 12,648 15,782 98,996 57,845 143,916 49.1 56.0 13 130,645 97,264 2 15,000 82,264 56,619 68.8 12,512 5,087 17,599 15,782 92,107 55,955 144,173 46.0 56.1 20 132,469 99,238 2 11,500 87,738 59,081 67.3 12,362 5,087 17,449 15,782 96,979 60,656 146,262 46.9 54.9 27 135,156 102,633 2 11,100 91,533 61,238 66.9 11,654 5,087 16,741 15, 782 89,449 56,511 145.778 44.2 52.2 Mar. 5 130,441 101,146 2 9,500 91,646 57,501 62.7 10,230 3,283 13, 513 15,782 99,489 61,451 146,717 47.8 53.9 12 129,347 102,692 2 9,500 93,192 57,925 62.2 9,086 1,787 10,873 15,782 96,738 55,787 149,145 47.2 52.7 19 124,370 98,646 2 5,625 93,021 55,371 59.5 8,560 1,382 9,942 15,782 94,271 50,392 147, 772 47.6 51.1 26 123,099 98,176 2 2,650 95,526 55,808 58.4 8,440 701 9,141 15,782 96,641 54,245 145.779 48.3 50.0 Apr. 2 127,155 102,962 2 3,000 99,962 56,510 56.5 7,820 591 8,411 15,782 92,524 54,075 145,944 46.3 48.1 1 9 6 1 12 2 6 4 , , 1 3 3 4 2 3 1 1 0 0 2 0 , , 8 2 2 6 0 3 1 1 0 0 2 0 , , 8 2 2 6 0 3 5 5 9 8 , , 4 4 7 4 9 7 5 5 7 8. . 3 8 7 8 , ,1 4 8 1 6 8 1 1 1 1 2 2 7 8 , , 5 2 3 9 0 8 1 1 5 5 , , 7 7 8 8 2 2 1 9 0 5 0 , , 4 1 1 2 5 6 5 5 7 2 , , 1 4 4 6 5 8 1 1 4 4 7 9 , , 4 4 9 2 3 2 4 4 8 7 . . 9 3 4 4 7 9 . . 3 0 o 23 132,019 108,735 108,735 60,932 56.0 7,501 7,501 15,783 86,534 52,229 147,008 43.4 43.4 MayJ 3 : 0 :::::: 1 1 3 3 8 7 , , 9 3 9 2 8 0 1 11 1 6 4 , , 6 2 1 0 6 7 1 1 1 1 4 6 , ,6 2 1 0 6 7 6 60 0 , , 8 5 8 9 0 2 5 5 3 2 . . 1 2 6 7 , , 5 3 9 30 9 6 7 , , 5 3 9 3 9 0 1 15 5 , , 7 7 8 8 3 3 8 80 3 , , 7 4 4 9 6 2 5 5 4 3 , , 3 3 5 7 3 4 1 1 4 4 7 7 , ,4 4 6 1 6 0 4 4 0 1 . . 2 4 4 40 1 . . 2 4 139,303 117,433 2,000 119,433 63,544 53.2 6,088 6,088 15.782 81,107 55,786 145,610 40.3 39.3 21 139,086 117,617 5,000 122,617 64,171 52.3 5,686 5,686 15.783 80,023 54,160 145, 749 40.0 37.5 28 137, 984 116, 322 8,500 124,822 64,025 51.3 5,880 5,880 15.782 80, 236 53,287 145, 080 40.4 36.2 June 4 135,069 113,547 8,000 121, 547 63,351 52.1 5,739 5,739 15.783 81,067 49,804 146,164 41.4 37.3 11 138,950 118,351 7,750 126,101 65,238 51.7 4,816 4,816 15,783 78,781 53,938 143, 070 40.0 36.1 18 132,071 111,376 4,616 115,992 56,173 48.4 4,912 4,912 15,783 78,381 48,678 140, 574 41.4 39.0 25 134,462 114,058 7,960 122,018 56,944 46.7 4,621 4,621 15,783 77,127 49,526 140,592 40.6 36.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 2.. 134,214 114, 524 4,778 119,302 57, 207 47.8 3,909 3,909 15,781 80,433 52,373 140, 554 41.7 39.2 9.. 134,648 114,570 5,507 120,077 57,691 48.0 4,297 4,297 15,781 74,512 45,837 141,362 39.8 36.9 16.. 134,468 113, 821 10,923 124,744 57, 391 46.0 3,865 3,865 16, 782 75,872 48,123 140.194 40.3 34.5 Au 23.. 134,158 114,675 15,650 130, 325 59,002 45.3 3,702 3,702 15.781 75,416 48,563 138,641 40.3 31.9 i 4; 133,445 114,127 21,607 135, 734 60,172 44.3 3,536 3,536 15.782 76,509 48,045 139, 277 40.8 29.3 135,155 115, 901 28,183 144, 084 62,238 43.2 3,472 3,472 15,782 77,468 48,799 140, 787 40.9 26.0 136, 222 117, 220 25,209 142, 429 61,937 43.5 3,220 3,220 15,782 76,841 48,966 140, 707 40.5 27.2 135,685 117,117 32,723 149, 840 63,915 42.7 2,786 2,786 15,782 76,076 48,492 139, 548 40.5 23.1 T- 2?:: 136, 862 118, 892 31,963 150, 855 64,319 42.6 2,188 2,188 15,782 76,671 47,484 142, 426 40.4 23.5 137, 245 119, 788 30,824 150,612 64,469 42.8 1,676 1,676 15, 781 77,684 47,836 142, 961 40.7 24.6 ^ Sept. 3.. 137,339 119, 921 31,711 151,632 66,190 43.7 1,637 1,637 15.781 75,908 42,672 146, 346 40.2 23.4 139,136 121, 857 34,748 156, 605 65,360 41.7 1.497 1,497 15.782 79,819 48,143 146, 441 41.0 23.2 24.'. 140,155 122. 949 45,533 168, 482 67,644 40.1 1,423 1,423 15, 783 78,565 46,903 147, 003 40.5 17.0 Oct. 1. 139, 341 121,673 48, 856 170, 529 68,694 40.3 1,886 1,886 15,782 79,442 46,376 147, 538 41.0 15.8 * J: 1 1 4 4 0 4 , , 6 8 7 7 0 4 1 1 2 2 2 5 , , 6 1 9 4 6 5 4 4 4 7, , 4 6 9 4 6 2 1 16 7 9 0 , , 1 7 9 8 2 7 6 6 8 6 , , 0 8 7 9 5 2 4 39 0 . . 4 0 2 2, , 7 3 4 9 3 3 2 2 , , 3 7 9 4 3 3 1 1 5 6 , . 7 7 8 8 5 2 7 8 8 0 , ,1 6 8 4 1 8 4 4 6 0 , , 1 2 4 0 3 7 1 1 4 5 7 8 , , 8 9 8 8 3 2 4 4 0 0 . . 5 3 1 17 6 . . 8 1 D N e o c v . . 2 3 1 1 2 1 1 2 2 3 0 3 7 0 6 9 2 5 2 9 . . . . . . . . . . . . . . . . . . . . 1 1 1 1 1 1 1 1 1 1 1 5 5 5 5 5 5 5 5 5 5 5 8 5 7 5 4 4 3 6 6 3 6 , , , , , , , , , , , 8 4 5 1 3 6 4 7 7 2 3 3 8 3 4 5 7 3 1 0 0 7 6 5 0 4 3 7 5 9 8 1 7 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3 4 3 3 3 7 7 8 9 7 4 4 0 4 8 5 , , , , , , , , , , , 0 6 1 6 9 3 3 2 5 3 3 2 5 4 7 3 2 2 0 2 0 9 6 9 9 3 5 6 8 3 5 4 4 3 3 3 3 3 3 3 3 3 4 4 3 5 6 5 6 5 8 1 7 7 0 , , , , , , , , , , , 6 0 1 9 7 2 1 8 4 7 5 5 4 1 1 1 5 4 2 1 5 0 9 1 8 6 2 7 5 2 9 8 8 1 1 1 1 1 1 1 1 1 1 1 7 7 7 7 7 7 7 7 7 6 6 5 7 6 6 7 3 6 1 3 7 9 , , , , , , , , , , , 1 6 8 6 3 2 7 0 4 7 9 3 0 9 7 4 4 4 6 9 6 0 7 8 2 7 8 7 7 2 5 2 2 6 6 6 6 6 6 6 7 7 7 7 8 6 8 6 5 9 1 9 0 1 1 , , , , , , , , , , , 9 2 8 8 4 7 7 0 7 9 5 6 4 8 4 7 9 2 8 6 3 2 1 1 3 3 0 2 2 0 0 2 7 3 3 4 3 3 4 4 4 3 3 4 9 1 9 8 0 0 9 9 0 9 0 . . . . . . . . . . . 0 0 4 1 2 4 4 9 3 0 2 2 2 3 2 2 2 2 2 2 2 3 , , , , , , , , , , , 6 1 2 2 1 6 4 6 5 4 1 9 1 4 5 5 3 0 3 6 9 2 0 2 4 0 3 4 9 7 5 5 2 2 2 2 2 2 2 3 2 2 2 3 , , , , , , , , , , , 2 6 6 1 4 6 2 1 5 4 1 5 9 3 1 0 3 4 5 6 9 2 3 0 4 2 9 7 4 0 5 2 5 1 1 1 1 1 1 1 1 1 1 1 5 5 6 5 5 5 5 6 6 5 6 . , , . , , , , , , , 7 7 2 7 2 7 7 7 7 7 7 8 8 8 8 8 8 8 8 8 8 8 3 2 5 3 9 9 9 4 2 4 2 8 8 8 8 8 8 8 8 8 8 8 9 8 8 8 7 7 7 6 6 5 6 , , , , , , , , , , , 7 1 1 1 0 1 4 2 0 2 7 1 8 9 9 7 4 1 9 0 3 3 9 1 1 1 8 2 9 4 2 7 2 4 4 4 3 4 4 4 3 4 3 3 1 4 1 9 0 7 2 0 9 0 6 , , , , , . , , , , . 3 0 8 1 2 8 6 6 9 8 2 2 0 9 4 3 9 9 4 4 1 4 5 7 3 3 9 5 0 8 2 0 0 1 1 1 1 1 1 1 1 1 1 1 7 7 7 7 7 7 7 7 7 7 7 7 6 2 2 6 6 4 2 1 6 5 , , , , , . , , , , , 6 1 0 6 9 2 1 7 3 4 5 7 9 9 7 3 3 6 3 9 5 0 6 5 3 8 1 0 6 4 8 1 8 4 4 4 4 4 4 4 4 4 4 4 0 0 0 0 0 0 1 1 0 1 0 . . . . . . . . . . . 5 5 4 3 4 1 1 1 1 7 1 2 2 2 2 2 2 2 2 2 2 2 3 4 1 4 4 2 1 3 3 4 4 . . . . . . . . . . . 2 2 6 6 0 0 2 7 2 0 8 o i H O a n : 1 Adjusted percentages are calculated after increasing or reducing reserves held by the amount of accommodation extended to or received from other Federal Reserve Banks. 2 Paper discounted for other Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

472 ANNUAL REPORT FEDERAL RESERVE BOARD. EEDERALRESERVEBANK OF ATLANTA NET DEPOSIT LIABILITY, l\ 8 F;R. NOTE CIRCULATION. I CASH RESERVES. AND RESERVERATI0S.I92O. 70 TO 60 60 SO. SO A 40 30 30 r s— 20 > 20 D *++ (0 RESERVE PERCENTAGES. ACJVAL'A"AaiUSTEP •\&SEEnOTEBEMW f PEF05ITLIABILITY 200 200 PS i IPS ISO Hi ISO I2S litin to illwi I2S ii ii IOO 100 to in PS HI PS it Hi SO Hi SO it ii ill 2S #1 2S ii WECmOJL4r/0N 250 22S 100 PS SO 2S DEPOSITANDF.R.NOTELIABILITIES,^, AMD TOTAL RESEWES/'C: JAfl. FEB. MAR. APR. MAY JUNE JULY AU6. SEPT. OCT. MOV. DEC Jldjusted jvsrceftbagesare ccrJUxxlajted, after increasing or reducing reserves hclcL - d t h £ t f d ti extended t id Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.— Volume of paper discounted and bought. [In thousands of dollars.] Discounted paper. Purchased paper. Total discounted and purchased paper. Secured by Month. Govern- Bankers' Trade Bankers' Total. ment accept- accept- All other. Total. accept- 1920 1919 1918 1917 war obli- ances. ances. gations. January 150,421 128,038 271 755 21,357 6,636 6,636 157,057 173,923 17,527 4,304 O February 136,709 115,157 279 311 20,962 6,737 6,737 143,446 110, 534 13,187 9 nos ti March 156,016 118, 203 1,613 1,802 34,398 3,901 3,901 159,917 147, 394 21, 055 3,573 April 156,636 117,470 2,247 1,460 35.459 4,209 4,209 160, 845 155, 002 37,527 a, 126 May 174,173 126,654 545 1,212 45,462 3,096 3,096 177, 269 168, 316 47, 893 4,421 June 162, 751 118,113 253 1,925 42.460 2,979 2,979 165, 730 167, 507 54,114 4,273 July 180,187 122,330 115 642 57,100 1,430 1,430 181,617 182,987 64, 749 4,763 August 208, 283 148,851 332 745 58,355 1,198 1,198 209,481 183,932 6,875 September... 207,734 140,910 125 758 65,941 2,040 2,040 209,774 216, 739 122,683 9,439 October 228, 884 145, 344 160 1,808 79, 572 2,960 2,960 229, 844 215, 537 177,452 20,444 November 239, 296 156, 019 262 1,056 81,959 1,711 1,711 241, 007 178, 399 167, 797 27,695 December 232, 856 134,302 136 1,409 97,OC9 2,680 235,536 157,168 167,680 30,496 Total: 1920 2,231,946 1,571,391 6,338 13,883 640,334 39,577 39,577 2,271,523 1919 2,005,777 1,769,658 51,661 51,661 2,057,438 1918 930,130 631,032 45,477 45,477 975,607 1917 95,115 18,400 126,392 26,392 i 121,507 i Includes $1,005,047 of acceptances purchased from the Federal Reserve Bank of New York. OQ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

474 ANNUAL REPORT FEDERAL RESERVE BOARD. SCHEDULE 4.—Earnings and expenses. 1920 1919 1918 1917 EARNINGS. Discounted bills $6,683,341. 88 $3, 735,032.95$1,758,074.69 $231,635. 57 Purchased bills 337,991.12 367,337. 75 302,231.06 102,311. 56 United States securities 32i), 450. 89 228,958. 61 114,451.31 140, 820.48 Municipal warrants 85.27 2, 889. 31 3,629.26 Transfers—net earnings 8,356. 00 33,756. 92 17,134.05 Deficient reserve penalties (including interest).. 102,846.10 68, 312. 83 35,240.00 13, 526. 88 Profit realized on United States securities 5.06 11,139. 06 25, 568. 99 Sundry profits "*28,'s6i."47 7, 912. 80 35, 276. 21 7,195. 95 Total earnings 7,476,431.46 4,416,001. 27 2,293,058. 56 541, 822. 74 CURRENT EXPENSES. Expenses of operation: Assessments, account expenses Federal Reserve Board 27, 882.11 22,391.31 15,368. 71 10,154.15 Federal Advisory Council (fees and traveling expenses) 1,092.02 469.57 454. 73 479.13 Governors' conferences (including traveling expenses) 504.38 575.23 70.36 299.98 Federal Reserve Agents' conferences (including traveling expenses) 174. 72 132. 94 142.30 Salaries- Bank officers 1.36, 996.13 116, 951. 58 70, 643. 45 36, 470. 93 Clerical staff 433,198. 51 289, 854.40 124,938.35 37, 892. 48 Special officers and watchmen 15,630. 80 10,036. 83 5,280. 40 3,424.10 All other 27,077. 59 12,933. 96 3, 059. 67 Directors' fees 4,090. 00 3,013. 00 2, 295.00 "*2,*i88.*68 Per diem allowances 6, 530. 00 4,085.00 2, 548. 40 2, 540.00 Traveling expenses 6, 807. 29 3,024. 91 2,688. 70 2,471.42 Officers' and clerks' traveling expenses 15, 494. 99 9,113. 22 3,008. 84 1,086. 94 Legal fees 8,068. 49 4,494.40 3, 494. 87 600. 00 Rent 19,432. 77 14,017. 81 18, 722.10 12,152. 92 Taxes and fire insurance 10, 774. 08 8, 268.10 3,275. 90 1, 210. 64 Telephone 3, 589. 49 2,988. 35 765. 82 535.05 Telegraph 50, 746.13 24, 325. 50 5,030.41 842. 86 Postage 57, 540. 97 49, 906. 31 28, 997.62 6, 825. 77 Expressage 1,465. 98 8, 831. 08 5,140.14 2,483. 33 Insurance and premiums, fidelity bonds— 13, 743. 68 8, 881.19 2, 041. 04 2,031. 71 Light, heat, and power ." 6, 095. 12 3, 889.11 762. 35 174. 67 Printing and stationery 80, 239. 56 46, 294. 43 23,781.58 7,062. 67 Repairs and alterations 9, 339. 82 2, 619. 32 132. 43 27.86 Cost of currency shipments to and from member and nonmember banks 56,087.14 31, 981. 91 4,665.11 All other 34,009.71 44, 003. 23 51,616. 36 15,812.54 Total expenses of operation.. 1, 046, 609. 4 723,082.69 378,922.64 I Cost of Federal Reserve currency (including expressalge, insurance, etc.) 126,009.13 148, 734. 44 149,390. 49 54, 808.22 Miscellaneous charges, account note issues 72, 808.48 11, 535. 89 9, 313.22 Taxes on Federal Reserve Bank note circulation 63, 957. 58 41, 561. 31 Furniture and equipment 76,056. 56 46, 844.39 89, 846. 89 8,177. 80 Bank premises 457.93 2, 500.00 Transit department disbursements in excess of net service charges received 2,277.04 Total current expenses j 1,385,441.23 972,216.65 627,473. 24 214, 510. 29 Current net earnings 6,090,990.23 3,443,784.62 1,665, 585. 32 327,312.45 PROFIT AND LOSS ACCOUNT. Earnings 7,476,431.46 4, 416,001. 27 2,293,058. 56 541, 822. 74 Current expenses | 1,385,441.23 972,216. 65 627, 473. 24 214, 510. 29 Current net earnings 0, 090,990.23 3,443, 784.62 1,665, 585.32 327, 312.45 Additions to current net earnings on account of— Amounts previously deducted from current net earnings for— Assessment account expenses of Federal Reserve Board 20, 301.62 Depreciation on United States bonds... 13,095. 53 All other 17.57 3, 583. 33 10,120.04 Total 6, 111, 309.42 1,665,585.32 337,432.49 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6 ATLANTA. 475 SCHEDULE 4.—Earnings and expenses—Continued. 1920 1919 1918 1917 PROFIT AND LOSS ACCOUNT—continued. Deduction from current net earnings on account of— Bank premises . .. $87,266.45 $51,477.99 $12, 797.34 Reserve for depreciation United States bonds 9, 506.11 $24,909.00 Assessment account expenses Federal Reserve Board . . 20, 301.62 All other 4,212. 73 6,286. 83 315. 30 14,320.00 Total deductions 100,985.29 78,066. 44 13,112.64 39,229.00 Net earnings available for dividends, surplus, and franchise tax, Dec. 31 6,010, 324.13 3,382,397.04 1,652, 472.68 298,203.49 Dividends paid . 225, 570.94 197,397. 04 182,472.68 218,203.49 Transferred to surplus fund 3,648,465. 31 3,185,000. 00 i1,470,000.00 40,000. 00 Franchise tax paid United States Government.. 2,136, 287. 88 40,000.00 Total 6,010,324.13 3, 382,397.04 1,652, 472.68 298, 203.49 i Includes $735,000 reserve for Government franchise tax, transferred to surplus in 1919. SCHEDULE 5.—Currency receipts from and shipments to member and nonmember banks. Receipts. Shipments. Total receipts. Total shipments. Month. m b F e a r m n o k b m s e . r no b F n a b r m n o e k m r e s m . - m b e a T m n o k b s e . r m T b o e a m n n k b o s e n . r - 1920 1919 1920 January $34,747,320 $1,330099,,911 $16,183007 $36,057,231 $22J,,004466,,434 $16,183,007 $6,478,050 February 21,625,626 ~ 404', 4'"0"7 20^ 200^ 550 23,030,033 12,266, 200,550 7,802,525 March 26,950,527 120, 17,450,173 $1850,000 28,070,633 16,273, 300,173 9,579,600 April 27,711,798 231, 19, 858,798 042,014 28,943,309 17,522, 900,812 8,842,550 May 26,514,864 089, 18,399,012 040,000 27,604,148 20,081, 439,012 10, 756,969 June 26,039,140 174, 17,464,317 052,239 27,213,783 16,758, 516,556 9,984,660 July 26,381,128 165, 21,707,179 72,500 27,547,012 20,410, 779,679 9,291,960 August 22, 562,418 172, 19,241,655 156,000 23, 735,34317,350, 397,655 13,627, 593 September 22,072,051 278, 24,646,898 125,800 23,350,700 13,440, 772,698 23,765,016 October 26,036,081 640, 24,530, 500,411 27,676,855 16,936, 031,247 32,814, 774 November 29.823,394 902, 17,289,070 %212,300 30,726,391 17,623, 19,501,370 20,082,141 December 30,847,148 662, 30,913,662 1,038^ 751 31,509,207 28,653,391 31,952,413 22,427,375 Total 321,311,495 14,153,150 247,885,157 41,090,015 335,484,645 219,365,032 288,975,172 175,453,213 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

476 ANNUAL REPORT FEDERAL RESERVE BOARD. SCHEDULE 6.—Operations of check clearing and collection department. [Amounts in thousands of dollars.] Items drawn on banks in own district. Items drawn on Items forwarded to Month. Lo R c e a s te er d v e in B an F k e d a e n ra d l Lo e c r a al t ed R e o s u e t r s v i e d e B F a e n d k - U T n r i e te a d su S re ta r t o e f s. s t o h e t e r h v i e r e r br F B a e n a d n c e k h r s e a s l . a R n e d branch cities. and branch cities. Number Amount. Number. Amount. Number. Amount. Number. Amount. January 276,320 246,868 865,917 169,843 61,792 15,792 133,256 77,355 February.. 246,337 218,284 899,782 140,429 67,518 15,174 132,819 68,014 March 329,558 250,219 1,009,009 161,970 75,558 14,811 199,303 83,186 April 269,625 241,148 934,391 155,428 80,002 14,998 148,078 62,237 May 263, 421 236,306 805,517 146,986 73,140 12,778 128,958 58,666 June 266,590 231,624 850,190 144,006 71,431 11,886 129,612 62,003 July 280,230 221,840 840,692 133,840 64,123 14,131 151,417 55,006 August 262,151 202,521 814,103 125,899 72,084 14,119 143,417 57,892 September. 276,377 220, 738 839,376 132,258 68,088 10,957 142,183 61,822 October 281,573 229,664 894,342 142,679 81,907 10,136 136,877 59,946 November. 269, 750 216, 986 861, 357 130, 738 81,225 12,057 137,606 56,081 December.. 295,147 213,038 1,017, 822 134,119 83,066 14,913 159, 266 69,903 3,317,079 2,729,236 10,632,498 1,718,195 879,934 161,752 1,742,792 772, 111 Totals. Month. 1920 1919 1918 1917 Number. Amount. Number. Amount. Number. Amount. Number. Amount. January 1,337,285 509,858 891,637 405,340 364,466 169,227 343,504 109,531 February 1,346,456 441,901 814,507 304,870 369,674 323,095 292,403 83,605 March 1,613,428 510,186 1,068,887 376,485 416,023 206,695 343,010 102,985 April 1,432,096 473,811 1,021,145 318,626 416,759 215,514 329,659 113,789 May 1,271,036 454, 736 1,072,400 339,927 444,446 264,366 320,999 112,635 June 1,317,823 449,519 1,014,286 372,869 457,097 234,232 306,845 119,217 July 1,336,462 424,817 1,039,706 372,988 570,514 235,099 301,118 127,419 August 1,291,755 400,431 997,804 362,649 659,056 246,243 303,051 113,127 September 1,326,024 425,775 1,092,698 458,566 603,630 279,210 308,489 129,943 October 1,394,699 442,425 1,216,301 498,584 709,402 365,530 389,160 192, 794 November 1,349,938 415,862 1,230,254 503,002 783, 018 422,292 394, 827 210,560 December 1,555,301 431,973 1,438,107 544,873 799, 724 381,784 398, 393 220,710 16,572,303 5, 381,294 12,897,732 4,858,779 6,593,809 3,343,287 4,031,458 1,636,315 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 7.—CHICAGO. WM. A. HEATH, Chairman and Federal Reserve Agent. A review of the activities of the Federal Reserve Bank of Chicago for the past year presents further proof that the Federal Reserve System is equal to all emergencies and the purposes for which it was organized have been fully realized. During the war Government financing was, of course, the chief strain. The year 1919 was primarily an intermediate year of transition; without the full burden of readjustment, while in 1920 the strain from Government financing has in some measure relaxed and that from industrial and agricultural factors has been felt in full force. As was foreseen in the latter part of 1919, the problem of 1920 has been, how best to meet the needs of credit accommodation for business enterprise equitably, so that our economic life might be as little disturbed as possible, and at the same time a lessened volume of credit attained. While the increase in discount rates has been effective to a degree as a check to needless expansion, the general principle of the necessity for credit control which underlie that increase has been appreciated by member banks and has resulted in a policy of more careful guarding of credit accommodation. It was, of course, inevitable that such a policy would meet with opposition from some of those directly affected; but the principle is now recognized that credit extension to support overexpansion could not be given indefinitely, that curtailment should be gradual, and that it should take place in all lines as equitably as possible. The problem of reserves, all important in our system, has through most careful guarding been successfully met, both as regards reserves of member banks with the Federal Reserve Bank of Chicago and the Reserve Bank's reserves against its own liabilities. As to the latter, this bank was able at times to assist other Federal Reserve Banks in maintaining their reserves through credit extensions to them, while at others it has received assistance from them, thus showing, the wisdom of mobilized reserves in stabilizing nation-wide credit. An increase in the volume of business of each department of the Reserve Bank not directly connected with Government financing, is shown by analysis of operations, and clearly indicates a growing appreciation by the member banks of the service the Reserve Bank can offer. FINANCIAL RESULTS OF OPERATION. A detailed comparative study of the results of operation since 1917 can be obtained from the balance sheet, Schedule 1. Capital account shows an increase for 1920 of approximately $1,500,000. The profit and loss statement for 1920 shows net earnings for the year available for distribution of $25,875,749, of which 477 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

478 ANNUAL REPORT FEDERAL RESERVE BOARD. $792,769 was paid in dividends, $14,688,500 transferred to surplus, and $10,394,480 paid to the United States Government as franchise tax. DISCOUNT OPERATIONS. The steady increase in bills discounted is evidence of the service the bank has rendered in meeting the demand for credit during 1920. During the first three months of the year it was able to relieve the strain in other districts by discount or purchase of paper from other Federal Reserve Banks, while, at certain periods, the heavy demands of the Seventh Federal Reserve District necessitated assistance from them. During the year applications for rediscount were received from 1,124 banks out of a total membership of 1,421. Comparison by States and years is as follows: Bills discounted for member banks. 1920 1919 1918 Number Number Number of banks of banks of banks accom- Amount. accom- Amount. accom- Amount. modated. modated. modated. Illinois 277 $2,982,797,786 208 $2,254,681,713 168 SI, 741,500,084 Indiana 155 370,333,483 153 273,937,050 125 184,405,140 Iowa 424 823,605,371 341 547, 590, 970 333 385,191, 839 Michigan 171 1,743,004,821 161 1,216,159, 567 128 612,080,430 Wisconsin... 97 385,750,099 88 263, 942, 845 96 342,672,516 Total 1,124 6,305, 491,560 951 4,556,312,145 850 3,265, 850,009 While, in volume, Illinois and Michigan stand at the head of the list in actual borrowings, other States outweigh these when their borrowings are considered in proportion to their contribution to the working assets of this bank. Obviously, the banks in Chicago and Detroit, and in other manufacturing and industrial centers, have a much more rapid turnover than those in the agricultural sections, and this turnover, as well as the fluctuations of their requirements, tend to swell the volume of rediscounts. The number of banks accommodated in Iowa is nearly as great as the number in Michigan and Illinois together. The number in Indiana borrowing from the Reserve Bank is almost as great as the number in Michigan. The total number of banks accommodated in the Seventh Federal Reserve District was 173 greater in 1920 than in 1919, and 274 greater than in 1918, the last year of the war. A decrease in percentage of discounted paper secured by Government obligations to total bills discounted for banks in this district is noticeable, but the general decrease in percentage is primarily due to the large increase in other discounts and not to a decrease in holdings of Government paper, as is shown by the chart giving # amounts of such paper held. The preferential rates given such paper during various periods of the year has not permanently affected the offerings. It may be assumed that the preferential in effect after June 1 would operate to cause the discounting banks to make all possible offerings of this class of paper as distinct from other discounts and yet the amount, $140,000,000, on December 31, 1920, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 7 CHICAGO. 479 was approximately that on December 31, 1919, $151,000,000, and the latter figure includes $19,000,000 of this class of paper rediscounted for other Federal Reserve Banks held by this bank on December 31, 1919. In general, the increase in discount rates has not permanently checked expansion in paper discounted, which indicates the tremendous pressure to which the banking system has been subjected and that the necessity for extension of credit outweighed consideration of increase in the discount rates. It is certain, however, that the increase, combined with other factors, has caused the member banks to examine more closely into the real need, resulting in a much less strain than would have been undergone had not the policy been adopted. Trade acceptance offerings for rediscount showed continued increase. The table below gives a comparison for the past four years: 1920 1919 1918 1917 First quarter... $4,615, 984 $1,117, 909 $963, 090 $8,609 Second quarter. 5,517, 745 385,019 1,721,121 43, 387 Third quarter.. 6,130,652 1,006, 323 2, 835, 840 138, 700 Fourth quarter. 9, 981, 389 4,071, 484 3, 512, 960 239,149 Total 26, 245, 770 6, 580, 735 9, 033, 011 429, 845 As the preferential rate on this class of paper was removed in January, it may be concluded that the use of such paper in settlement of business transactions has increased over previous years. A preferential rediscount rate was given to bankers' acceptances on January 27. Schedule 3 of the appendix lists, by months, the volume of such paper discounted during the year, amounting to $32,000,000. The steady decrease in holdings of purchased bills during the year is indicated in Schedule 2. Included in the holdings during the first two months were bills purchased from other Federal Reserve Banks, while from July to October reductions in our holdings were made by sales to them. Assistance was given to the development of a market for bankers' acceptances by purchase of such bills, with agreement by the seller to repurchase within 15 days. A large part of our open-market purchases were made in the New York market. Our holdings in Government securities were practically the same at the close of this year as of last. Large fluctuations were caused by short-term certificates held for only a few days, until maturity or sale. Investments of a permanent nature show a small change in holdings of bonds. The total earning assets, as made up of all of these elements, increased from $424,000,000 on December 31, 1919, to $545,000,000 on December 31, 1920, varying between a maximum of $566,000,000 on November 5 and a minimum of $405,000,000 on January 9, if the weekly figures are used. DEPOSITS, FEDERAL RESERVE NOTES, RESERVE POSITION. The fluctuations in net deposits, Federal Reserve notes, and reserves during 1920 are shown in Schedule 2 and in the accompanying chart. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

480 ANNUAL REPORT FEDERAL RESERVE BOARD. The trend of net deposits and Federal Reserve notes in circulation were opposite in nature, that of the former being downward and of the latter upward. The variations in percentage of cash reserves against total net deposit and Federal Reserve note liability as indicating the reserve position are shown. The chart also presents " adjusted" reserve percentages, indicating what would have been the percentage if transactions to adjust reserves by accommodation extended to or received from other Federal Reserve Banks had not taken place. It will be seen that for the first three months this bank made advances to other Federal Reserve Banks, but after that time assistance from them was necessary to maintain its own reserves. FEDERAL RESERVE BANK NOTES. Federal Reserve Bank notes in circulation December 31, 1920, amounted to approximately $39,000,000 as against $41,000,000 December 31, 1919. The decrease to $27,000,000 during the first five months as well as the increase during the remainder of the year were steady. GROWTH OF MEMBERSHIP. Applications of 23 national banks for stock in the Federal Reserve Bank of Chicago were approved during 1920, while 8 national banks surrendered their stock. Forty-two State banks of the district were added to membership, while 10 retired from membership, of which number 3 either liquidated or merged with member banlks. The new members are classified by States as follows: Illinois 8, Iowa 22, Michigan 9, Wisconsin 3. Comparative figures of membership. Dec.31, 1920. Dec. 31, 1919. Dec.31,1918. National. State. Total. National. State. Total. National. State. Total. Illinois 325 65 390 319 61 380 316 57 373 Indiana 194 20 214 194 22 216 194 19 213 Iowa 358 101 459 354 80 434 354 77 431 Michigan 80 146 226 76 139 215 74 113 187 Wisconsin 106 26 132 105 24 129 107 22 129 Total 1,063 358 M21 1,048 326 1,374 1,045 288 1,333 FIDUCIARY POWERS. Applications of 55 national banks for trust powers (under sec. 11 (k) of the act) were approved during 1920. As classified by States, their number is as follows: Illinois, 15, Indiana 9, Iowa 11, Michigan 9, Wisconsin 11. Of these, 5 were applications for additional fiduciary powers. DEPARTMENT OF BANK EXAMINATIONS. The year 1920 discloses comparatively little change in the department of bank examinations. During the calendar year cooperative examinations have been made with each of the five State banking departments and with the national-bank examiners, while special examinations have been made of both national and State banks. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 7 CHICAGO. 481 number of examiners is being materially increased and it is expected that during the year 1921 more examinations of member institutions can be made. The relations existing with the various departments of banking represented in the district are friendly and all are working together in the interests of better banking. BANK RELATIONS DEPARTMENT. During 1920 the bank-relations department has kept in personal touch with the banks of the Seventh District through visits to all member banks in the Chicago district, to most of those in the Detroit district, and to 734 nonmember banks in the Chicago and Detroit districts. It has assisted member banks in the use of Federal Reserve facilities, cleared up misunderstandings about the Federal Reserve Bank and the Federal Reserve System, and explained the changes in banking practice due to the operation of the Federal Reserve Act. Many member banks have sent officers and employees to the Federal Reserve Bank to see the departments with which they have business. In addition to calls on member banks, effort has been made to visit as many of the nonmember banks as possible. These visits have been for the purpose, not primarily of soliciting membership, but rather of furnishing information that would help to determine how membership would affect the individual bank and to explain its relation to the Federal Reserve System. On request, bank-relations men have met with the officers and directors of eligible banks to discuss membership and assist in making out membership applications. STATISTICAL AND ANALYTICAL DEPARTMENT. During 1920 this department has compiled statistical information other than departmental for the Federal Reserve Board, member banks, and officers of this bank. Information relative to business conditions as well as that pertaining primarily to banks in the district has been furnished also to the public, both through a regular report and in response to particular inquiries. A library of reference books and files for statistical investigation and research is being collected. PART PLAYED IN GOVERNMENT FINANCING IN 1920. During 1920 the banks of the Seventh Federal Reserve District purchased $132,530,000 United States loan certificates of indebtedness, 10.6 per cent of the total amount purchased by the banks of the entire county, and $288,322,000 United States tax-anticipation certificates of indebtedness, 10.8 per cent of the total amount of taxanticipation certificates of indebtedness sold in the entire country. All of these certificates of indebtedness have matured or been retired except $79,291,500 loan and $160,727,000 tax-anticipation certificates of indebtedness. At the present time, therefore, $240,018,500 of the total banking resources of this district are invested in United States certificates of indebtedness. A wide distribution of these issues has been built up among taxpayers, corporations, and investors by the banks that make the original subscriptions. The sales Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

482 ANNUAL REPORT FEDERAL RESERVE BOARD. policy has been to encourage banks to buy only if they had funds for investment or customers among whom the certificates of indebtedness could be distributed. SUBTREASURY TAKEN OVER. On November 3 the Subtreasury at Chicago was discontinued and the Federal Reserve Bank, acting as depositary or fiscal agent, was designated by the Secretary of the Treasury to perform all subtreasury functions except the keeping in trust of gold coin and bullion and standard silver dollars held against gold and silver certificates and as reserve against United States notes. GOVERNMENT SAVINGS SECURITIES. Notwithstanding the abnormal conditions which have prevailed during the year 1920, the demand for Government savings securities continued in many parts of the Seventh Federal Reserve District. The sale of 1920 savings securities, including sales by postmasters, amounted to approximately $8,000.,000 and the selling expense was approximately 1 per cent. GOLD SETTLEMENT FUND. The service rendered in settling balances between districts is shown by the volume of daily settlements through the gold settlement fund. The total of debits for these items in 1920 was over $11,000,000,000, and credits exceeded the debits by $221,000,000. Daily settlements after the first four weeks showed a long period of losses until August, when gains were shown with the exception of one period- Transfers tended to offset this loss with a gain of $123,000,000. Deposits and withdrawals resulted in a net gain of $73,000,000, while transactions with the agent's fund show a net loss of $15,000,000. All operations combined resulted in a net loss of $40,000,000. FOREIGN ACCOUNTS. During 1920 four foreign accounts have been open. Deposits with the Bank of England, standing at $15,627,105 at the first of the year, was gradually reduced to a balance of $7,669,448 on December 23, when by a payment of gold, now held at the New York assay office, the account was closed. A deposit with the Bank of France, on November 3, of $392,700, has been maintained to this time. The share of the Federal Reserve Bank of Chicago in the credit to the Argentine Government, which stood at $8,602,993 the first of the year, was reduced at intervals and finally closed on October 28. This bank, on June 16, participated in a deposit of $476,000 to the credit of the Bank of Japan, and this balance was maintained throughout the remainder of the year. POSITION OF COMMERCIAL BANKS. A comparison is given of advances and loans to member banks with the Federal Reserve note issue, made possible by the capital stock and reserves member banks have paid in to the Federal Reserve Bank, deduction being made for reserve held by the Reserve Bank against the liabilities so created: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1 CHICAGO. 483 [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, Dec. 31, 1920. 1919. 1918. 1917. Capital Federal Reserve Bank paid in 13,913 12,347 11,185 9,092 Member banks' reserve account 249,771 257,979 230,605 169,174 Total with Reserve Bank from member banks 263,684 270,326 241,790 178,266 35 per cent of member bank reserve to be held as reserve by Federal Reserve Bank against deposit liability 87,420 90,293 80,712 59,211 Member bank funds with Reserve Bank available as basis for Federal Reserve noteissue 176,264 180,033 161,078 119,055 Limit to Federal Reserve noteissue on basis of member bank funds, only (40 per cent reserve required) 440,660 450,082 402,695 297,637 Loans to member banks of Seventh District 475,563 267,639 147,740 105,119 FEDERAL RESERVE CLEARING SYSTEM. The service performed by our check department during 1920 is shown by an increase of 61 per cent in total number of items handled over the year 1919. The number of items on Chicago and Detroit banks increased 44 per cent; checks on banks outside of Chicago and Detroit increased 79 per cent; and Government checks decreased 19 per cent. During 1920 over 60,000,000 items were handled, totaling over $18,000,000,000. Of this number 19 per cent were drawn on Chicago and Detroit banks, 69 per cent on banks of this Federal Reserve district outside of Chicago and Detroit, 6 per cent on banks in other districts, and 6 per cent on the Treasurer of the United States. The largest volume in the history of this department was handled on October 13—309,186 items totaling $80,307,000. Checks on all banks in the Seventh Federal Reserve District are now collectible at par through this bank. TRANSFER OPERATIONS. The year 1920 showed an increase over 1919 of 11 per cent in the total amount of transfers bought and of 22 per cent in transfers sold. Total operations of transfers bought and sold during 1920 were $7,668,335,000 as against $6,718,664,000 during 1919, an increase of 14 per cent. Rates were uniform through the year at 15 cents discount per day per thousand for draft purchases and 7J cents for draft sales. Of the total transfers, 94 per cent by number, 82 per cent by amount, were transferred by telegraph, and so without charge. COLLECTION DEPARTMENT. The number of items handled by this department in 1920 was 2.7 times that of the preceding year, increasing from 62,388 to 169,599, with an increase from $331,000,000 to $875,000,000 in amount. There is a growing realization of the opportunity offered member banks in collection facilities. Returns at par are obtained for collections on points where there is a Federal Reserve Bank or branch and many commercial banks remit at par for collections. From figures compiled for the Chicago office, collections of items drawn on banks outside of Chicago were made during the year at par on 55,859 items totaling over $305,000,000 as against 12,734 nonpar items totaling approximately $11,000,000. Exchange averaged 80.7 cents per thousand dollars for items on which it was charged, resulting in the very small charge of 2.8 cents per thousand dollars for aggregate of items collected. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

484 ANNUAL REPORT FEDERAL RESERVE BOARD. COLLATERAL DEPARTMENT. During 1920, this department has received as collateral to notes of member banks, United States certificates of indebtedness totaling $182,000,000 and has released certificates totaling $232,000,000; has received United States bonds totaling $174,000,000, and released bonds totaling $130,000,000. United States securities to the amount of $94,000,000 were received as collateral to notes rediscounted by member banks and $70,000,000 were released. To be especially noted is the substitution of United States bonds for certificates of indebtedness, as the latter matured and were absorbed by individual investors. INTERNAL ORGANIZATION. The only change in personnel of the board of directors of the Federal Reserve Bank of Chicago in 1920 was the appointment, effective in May, of Frank C. Ball, of Muncie, Ind. to fill the unex- ; pired term of Edwin T. Meredith, who resigned from the board to take the office of Secretary of Agriculture. The board of 1921 will be composed of the following: Class A, Elbert L. Johnson, Charles H. McNider, and George M. Reynolds; class B, John W. Blodgett, Albert R. Erskine, and August H. Vogel; class C, Frank C. Ball, William A. Heath, and James Simpson. William A. Heath was again designated by the Federal Reserve Board as chairman and Federal Reserve agent for 1921. James Simpson was again designated as deputy chairman. John J. Mitchell, of Chicago, succeeds James B. Forgan as member of the Federal Advisory Council. The executive committee for 1920 was composed of James B. McDougal, governor; William A. Heath, Federal Reserve agent; Charles H. McNider, George M. Reynolds, James Simpson, and August H. Vogel. The membership committee was composed of William A. Heath, Federal Reserve agent; James B. McDougal, governor; and August H. Vogel. Each of these committees will remain the same for 1921. Two new official positions were created at the time the subtreasury was taken over. Jesse G. Roberts was elected manager cash department and Robert E. Coulter, assistant manager cash department. A reorganization of the official staff was made to take effect January 3, 1921, in which the departments of the bank were rearranged in accordance with the several functions performed. The new plan of organization provides for an officer designated as a controller, in charge of each function. Under the supervision of the controllers, the operating departments of each function are in direct charge of managers. The positions of controller and manager are equivalent to the offices of cashier and assistant cashier, respectively, which have been discontinued. The purpose of the plan is to effect a broader distribution and a more definite placement of the responsibilities, and to enable the controllers to specialize in functions assigned them. It is believed that the administration and operation of the bank under the reorganization will result in increased efficiency and improved service to member banks. DETROIT BRANCH. On February 1, 1920, there were assigned to the Detroit branch of the Federal Reserve Bank of Chicago the counties of Bay, Genesee, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—Movement of principal asset and liability items during 1920. 00 [Amounts in thousands of dollars.] Reserve per- Discounted bills. Purchased bills. centages. Discounted for member banks in this district. Federal Date, e a a T s r s o n e t i a t n s l g . T he o l t d a . l c R F R o o e e w u e t s d h i n d e e t e i t r h r s e r v a - d e l A. Sec B u . red C. c m h o a P a s p r u e e k r d n e - t i . n R B F S o e e a o t d s n l h d e e k e r r s v t r a . o e 1 l T he o l t d a . l se U S cu n ta r i i t t t e e i s d es. re T s c e a o r s t v h a e l s. dep N o e s t its. n R ci o t e r i t c s o e e u s n r l v . a in e - Actual. ju A st d e - d.2 Banks.* Total. w e b r y a n r m G o o e b v n li - t - P (B er + c A en ). t gations. Jan. 2 475,174 296,116 -17,540 278,576 142,881 51.3 65,250 -25,440 90,690 88,368 352,416 264,468 498,178 46.2 51.8 9 404,795 246,729 — 6,050 240,679 129,846 53.9 65,005 -20,787 83, 792 69,274 393,369 246, 785 486,386 53.7 57.3 10 435,108 293,592 -47,500 246,092 128,932 52.4 66,961 -17,157 84,118 57,398 365,252 257,111 477,493 49.7 58.5 23 442,261 314,332 - 47,675 266, 657 137.018 51.4 68,448 -14,491 82,939 44,990 361,981 256,217 481,593 49.1 57.5 30 430, 698 314,914 -48,940 265,974 134; 702 50.6 67! 829 - 2,978 70,807 44,977 369,382 253, 720 481,109 50.3 57.3 Fob. 6 448.914 333,877 -54,200 279,677 142, 742 51.0 69,541 - 545 70,086 44,951 359,280 254,009 488,999 48.4 55.7 13 460, 476 341,035 -42,195 298,840 153,111 51.2 63,546 - 5,090 73,636 45,805 355,618 255,876 495,197 47.3 53.6 20 . .. . 474,062 354,169 -40,890 3] 3,279 163,310 52.1 69,998 - 5,090 75,088 44,805 340,168 248,411 501,228 45.4 51.5 27 436,597 372,832 -33,410 339,422 172,324 50.8 69,518 69,518 44,247 332,131 244, 926 508,925 44.1 43 5 Mar. 5 489,413 378,515 -28, 535 349,980 184,607 52.7 66,724 66, 724 44,174 320, 853 233, 739 514,122 42.9 46.7 12 506,175 396,614 -20,135 376,479 183,282 48.7 65 392 65,392 44,169 319,003 249,075 513,656 41.8 44 5 19 469,822 341,697 — 7,605 334,092 150,279 45.0 64,013 64,013 64,112 320,825 212, 479 517, 777 43.9 45.0 26 511,018 404,150 — 7.605 396, 545 159,729 40.3 62, 761 62, 761 44,107 316,835 246,897 520 065 41.3 42 3 Apr 2 529, 733 422, 562 8,000 430, 562 160,124 37.2 63,047 63,047 44,124 295,906 240,673 523,062 38.7 37.7 9 512,080 406,747 20,050 426, 797 163, 575 38.3 61,211 61,211 44,122 314,326 234,803 529, 452 41.1 38 5 16 525,530 420,198 15,450 435,648 162,303 37.3 61,209 61,209 44,123 314,702 251,804 523,700 40.3 38.3 23 520,536 416,891 42 085 458 976 168,637 36.9 59 532 59,532 44,113 301,231 232,665 529 499 39 5 34 0 30 523,161 424,897 38,471 463,368 175,962 38.0 54,150 54,150 44,114 312, 532 249,845 527,633 40.2 35.3 May 7 515,532 416 898 29 917 446 815 175,793 39.3 54 505 54 505 44,129 313,287 236,672 531 987 40 8 36 9 14 523,463 424,805 19,291 444,096 177,112 39.9 54,546 54,546 44,112 310,466 245,465 527,943 40.1 37.6 21 521,013 422,528 26,000 448,528 179,609 40.0 54,359 54,359 44,126 308,218 236,528 531,797 40.1 36.7 28 527,041 427,540 18,995 446,535 178,377 40.0 55,392 55,392 44,109 308,800 237,910 535,230 39.9 37.5 June 4 536,989 437,934 19,000 456,934 177,780 38.9 54,943 54,943 44,112 310,939 243,444 539,895 39.7 37.3 11 523,568 426,210 13,400 439,610 177,775 40.4 53,253 53,253 44,105 312,297 236,243 533,954 40.5 38.8 18 512,751 414,436 414,436 147, 445 35.6 54,213 54,213 44,102 299,737 215, 471 531,901 40.1 40.1 25 525,711 426.955 24,950 451,905 155,697 34.5 54,648 54,648 44,108 304,469 230,499 531,449 40.0 36.7 July 2 529,244 430^235 34,238 464,473 149,208 32.1 54,750 54,750 4^,259 306,929 224,137 542,981 40.0 35.5 9 536,996 438,420 31,672 470,092 150,589 32.0 54,457 54,457 44,119 309,254 228,253 547,917 39.8 35.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16. 533,711 435,387 16,923 452,310 150,^72 33. B 51 104 51,104 47,220 295,820 221,797 537,067 39.0 36. 8 23 527,839 442,863 442,863 159,949 36.1 50,783 10,001 40,782 44,194 313,910 232,661 537,719 40.7 39.4 30. 528,271 444,643 444,643 156, 477 35.2 49,483 10,001 39,482 44,146 312,539 234,401 533,589i 40.7 39.4 Aug. 6. 524,566 440,429 440,429 155,956 35.4 49,253 9,329 39,924 44,213 315,426 228,211 537,951 ' 41.2 40.0 ^ 13. 521,270 433,775 433,775 151,556 34.9 49,858 6,509 43,349 44,146 332,008 240,394 538,278 42.6 41.8 a 2o. 530,197 440,397 440,397 157,600 35.8 47,214 1,942 45,272 44,528 322,958 235,444 541,649! 41.6 41.3 524,010 438,764 438,764 162,628 37.1 49,100 8,001 41,099 44,147 337,411 240,392 543,929 i 43.0 42. G to 27. 537,085 448,855 448,855 159,622 35.6 51,708 7,611 44,097 44,133 337,352 244,642 551,714 I 42. 4 : 41.4 oi Sept. 3 524,272 431,501 431,501 157,840 36.6 51,253 2,615 48,638 44,133 345,152 232,168 558,335 ! 43.3 ,° 10. 546,918 450,550 450,550 149,099 33.1 52 013 52,013 44,355 323,336 235,404 554,820 40.9! 40.9 i Oct. 1, 5 5 5 5 6 6 , , 7 75 3 2 8 4 4 7 7 3 2 , , 9 74 0 8 8 1 1 9 8 , ,5 8 5 0 0 0 4 4 9 9 3 1 , ,2 7 9 0 8 8 1 1 5 4 3 7 , , 4 3 0 8 1 4 3 31 0 . . 1 0 4 4 8 9 , , 6 7 5 8 8 6 1 1 0 0 , , 0 0 0 0 0 0 3 3 8 9 , , 6 7 5 8 8 6 4 44 4 , , 2 1 1 7 8 2 3 3 0 0 5 2 , , 5 4 9 4 6 5 2 2 2 2 5 2 , ,8 9 4 0 9 9 5 5 5 5 5 4 , , 1 2 8 3 8 8 i 3 3 8 9. . 1 9 J 1 3 3 5 5. . 2 % 8. 557,644 471,948 17,750 489,698 146,537 29.9 51,014 9,441 41,573 44,123 303,196 221,607 555,872 ! 39.0! 35.5 15. 564,724 468,420 14,500 482,920 142,738 29.6 55,213 6,030 49,183 47,121 311,585 236,435f 556,684. 39. 3 i 36.7 556,571 460,142 13,050 473,192 144,874 30.6 50 325 50,325 46,104 309,276 225,715 556,587' 39.5 37.9 ^ 29. 552,166 463,837 7,050 470,887 144,950 30.8 44,221 44,221 44,108 316,442 230,256! 554,186 40.3 39.4 Nov. 5. 566,102 479,664 3,000 482,664 142,928 29.6 42 336 42,336 44,102 308,086 232,564| 556,455 39.0 38. 7 1 1 2 9 . . 5 5 3 4 9 4 , , 4 7 5 6 6 7 4 4 6 5 2 5, , 6 9 5 0 4 2 4 4 6 5 2 5 , , 9 65 0 4 2 1 1 4 4 1 7 , , 5 5 7 3 6 3 3 32 0 . . 4 6 3 3 0 7 , 4 7 1 6 7 3 3 37 0 , , 4 7 1 6 7 3 5 4 3 4 , , 3 1 8 0 5 2 3 3 0 0 8 5 , , 7 4 7 0 0 5 2 2 2 1 1 6 , , 0 7 8 2 9 7 5 5 4 4 6 2 , , 6 2 1 0 5 0 4 4 0 0 . . 2 2 4 4 0 0 . . 2 2 26. 550,687 478,457 478,457 149,481 31.2 28,091 28,091 44,139 309,493 228,386 544,759 40.0 40.0 Dec. 2 3 1 1 3 0 0 3 7 , . . . . 5 5 5 5 5 3 3 1 4 4 5 9 5 4 6 , , , , , 6 9 1 6 8 6 3 1 5 3 6 2 8 8 5 4 4 4 4 4 7 7 6 4 6 7 5 6 6 1 , , , , , 8 8 5 1 5 6 7 7 5 8 9 7 8 5 1 4 4 4 4 46 7 6 7 4 6 5 1 7 6 , , , , , 5 8 8 1 5 8 6 7 5 7 1 9 7 5 8 1 1 1 1 1 4 4 3 5 4 0 2 4 3 7 , , , , , 6 6 8 7 5 2 7 4 9 0 3 6 5 2 5 2 3 3 3 3 9 0 0 3 1 . . . . . 4 0 2 3 6 2 2 2 2 25 4 3 4 4 , , , , 3 9 4 5 9 9 6 3 0 8 5 1 5 5 6 2 2 2 2 2 3 4 4 4 5 , , , , , 9 4 5 3 9 6 3 0 9 8 1 5 5 5 6 5 4 4 4 4 4 4 4 4 4 , , , , , 1 3 1 1 1 7 8 0 0 0 5 6 2 2 2 3 3 3 3 3 1 0 1 0 1 0 8 0 1 6 , , , , , 9 3 3 7 3 0 1 0 3 8 5 5 9 3 8 2 2 2 1 1 1 1 1 9 9 8 5 5 4 7 , , , , , 4 1 4 1 0 2 8 5 0 1 4 2 0 7 5 5 5 5 5 5 4 4 5 4 4 3 1 8 9 7 , , , , , 1 1 9 6 9 9 7 6 8 5 1 6 7 3 0 , 3 4 4 4 4 9 0 2 1 0 . . . . . 8 4 7 0 8 3 4 4 4 4 9 0 1 0 2 . . . . . 8 4 0 8 7 o 3 H 1 Minus sign indicates paper discounted for or purchased from other Federal Reserve Banks. 2 Adjusted percentages are calculated after increasing or reducing reserves held by the amount of accommodation extended to or received from Federal Reserve Banks. O W o 00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 7—CHICAGO. 485 Hillsdale, Huron, Ingham, Jackson, Lapeer, Lenawee, Livingston, Macomb, Monroe, Oakland, Saginaw, Sanilac, St. Clair, Shiawassee, Tuscola, Washtenaw, and Wayne in the Lower Peninsula of Michigan. With this territory to serve, the organization of the Detroit branch was enlarged to the point where, under supervision of the parent bank, it began to exercise the functions of a Federal Reserve Bank in every respect except that of issuance of notes and a few minor functions. The personnel of the board of directors for the year 1920 was as follows: Robert B. Locke, chairman, John Ballantyne, Emory W. Clark, Julius H. Haass, and Charles H. Hodges. The board will remain the same for 1921. The branch has been fully equipped to meet the demands made upon it by member banks in its very active territory. The volume of business handled has proved the wisdom of establishment of a branch bank in this district to meet the needs of member banks there located. SCHEDULE 1.—Comparative statement of condition. [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, Dec. 31, 1920. 1919. 1918. 1917. ASSETS. Gold coin and gold certificates 29,016 24,181 23,234 32,189 Gold settlement fund—Federal Reserve Board 36,048 76,479 106,773 58, 961 Gold with foreign agencies 393 15,627 816 7, 350 Total gold held by bank 65, 457 116, 287 130, 823 98,500 Gold with Federal Reserve agent 198,162 243, 604 275, 803 130, 724 Gold redemption fund 33, 461 19,533 15,151 646 Total gold reserves 297, 080 379, 424 421, 777 !9, 870 14,440 1,921 1,797 964 Legal tender notes, silver, etc 311, 520 381, 345 423, 574 230, 834 Total reserves , Bills discounted secured by Government obligations—member 140, 429 150, 819 2 110,172 57, 743 banks 335,134 136, 090 53, 918 47, 376 Other bills discounted—member banks 25, 741 92, 650 62, 880 9,182 Bills bought in open market , Total bills on hand 501, 304 379, 559 226, 970 114, 301 United States bonds 4,490 4,477 4,509 7,007 United States certificates of indebtedness 39, 612 39, 788 15,612 3, 378 Total earning assets 545, 406 423, 824 247, 091 124, 686 Real estate (site for bank building) 2,351 2,116 2,936 5 per cent redemption fund against Federal Reserve Bank notes. 1,778 1,888 830 Uncollected items and other deductions from gross deposits 88, 997 128, 501 78, 230 34, 514 All other resources 989 936 1,526 1,711 Total assets 951, 041 938,610 754,187 391, 745 LIABILITIES. Capital paid in 13,913 12,347 11,185 9,092 Surplus 28, 980 14, 292 3,316 216 Unearned discount and interest 3,524 1,393 515 318 Government deposits 12, 532 350 6,566 3,052 Due to members—reserve account 249, 771 257, 979 230, 605 169,174 Deferred availability items 55, 911 100, 826 50,142 25, 359 Other deposits, including foreign government credits 1,867 9,975 2,175 3,660 Total gross deposits 320, 081 369,130 201, 245 Federal Reserve notes in actual circulation 545, 395 500,139 428, 180, 628 Federal Reserve bank notes in circulation—net liability 38, 856 40, 950 17, 643 All other liabilities 292 * 359 3,220 246 Total liabilities 951, 041 938, 610 754,187 391, 745 1 Includes $19,270,000 rediscounted for other Federal Reserve banks. 2 Includes $16,350,000 rediscounted for other Federal Reserve banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

488 ANNUAL REPORT FEDERAL RESERVE BOARD. FEDERAL RESERVE BAHK OF CHICAGO.II MOVEMENT OF'EAMIH6 ASSETS ouRine mo. 100 UNITED STATES SECURITIES w so o IP ^^ PURCHASED BILLS MELD 100 80 60 40 20 PERCEflTAGEOFWARFAFER TO TOTAL DISCOUHTS FOR BAHKSIli DISTRICT. 550 550 500 500 450 450 400 400 350 350 300 300 mk 250 250 • ^^ 200 2O0 1*1 150 m ISO 100 ^^ m 9 w 100 SO H ii ^^ 50 0 K H ^^ DISCOUNTED BILLS. (SEE NOTEBELOfVJ TOTAL EARNING ASSETS JAN\ FEB\MAR\APR\MAr\lUliE\JUL)\AU6.SEPT. OCT.fiOV DEC A %mersecured by OovernmenbWvObligations dticounted,fbr3kinfa irvfizstrict. : B :Jotal9aiierdLScoatUed fi>r$anKs ut&isMct. C.Jotal discountedJhjterkeld'. SpAjccbc£wccn,lin&£andCivfir<xenti-w and -wh&rebetowlwJt-Jkjwrediscoiitijtzd, with, h ^ l ^^ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1 CHICAGO. 489 4 FEDERALRESERVEBAFiK0FCHICA60 NET PEPOS/TLIABILITY, F.R. NOTE CIRCULATION, CASHRESERVES.AtiD RESERVERATIQSMO. TO- 60 60 'A SO SO A 40 -f 40 30 30 20 20 RESERVE PERCEPITA6ES. ACTUALS AOJUSTED »B». SEEWTEBELOfV. DEPOSIT LIABILITY 600 600 500 500 400 300 100 DnP05ITAtiDERWTEUABIUTIE5"tA!iDT0TAL RESERVES,*C\ l t JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT. OCUttOV PEC. Jldjasted jvercenJbages are calculated, after increasing or reducing reserves held -bth tfwdatwn tdd t ^di Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

voourne uj paper uosuuurwva ana CO O [In thousands of dollars.] Discounted paper. Purchased paper. Total discounted and purchased paper. Month. Total. b m y S e e G n c t u o r v w e e d a r r n- B a a a c n n c c k e e p e s t r . - s' a a T c n c r c a e e d p s e t . - All other. Total. B a a a c n n c c k e e p e s t r . - s' ex D ch o a ll n a g r e. a a T c n r c c a e e d p s e t . - 1920 1919 1918 1917 obligations. January 408,577 305,562 2,413 1,266 99, 336 24,486 23,936 433,063 324,382 203,889 2.304 February 472, 690 321,057 11) 815 896 138, 922 35, 733 35, 733 508, 423 276,622 137,582 8;739 March 636,386 380, 019 7,509 2,455 246, 403 33, 096 33,082 14 669, 482 355, 519 47,135 5,466 M Ap a r y il 5 5 2 0 9 5 , , 9 9 7 9 7 5 3 33 4 5 2 , ,2 2 2 5 4 3 4 1 , 1 7 0 0 0 3 2 1 , , 6 6 4 2 4 8 1 16 8 7 1 , , 0 3 2 9 7 3 3 2 2 3 , ,2 1 6 5 6 4 3 2 2 3 , , 0 06 0 6 4 2 1 0 5 0 0 5 5 5 3 3 8 , , 1 2 3 6 1 1 3 4 6 3 5 4 , , 3 87 5 7 8 1 17 2 1 5 , , 4 5 1 3 3 6 1 6 4 , , 1 2 1 3 5 4 hi June 560, 926 346, 111 461 1,245 213,109 35,420 34, 787 633 596, 346 420,770 191, 578 44,201 o July ;.; 496,302 305,394 655 1,885 188, 368 27,608 27,338 270 523,910 394,089 388,856 39,705 August 510,946 309, 582 615 1,994 198, 755 34, 657 34,406 251 545,603 401,146 416, 850 24,934 3 September 621, 678 316,386 585 2,279 302, 428 32,332 32,176 156 654,010 402,042 463, 427 37,561 October. 487,434 271,360 222 2,968 212, 884 27,336 26, 546 790 514,770 444,066 567,362 99,412 N De o c v e e m m b b e e r r 5 55 1 6 7, , 8 7 6 1 3 8 2 2 9 8 8 4 , , 6 8 0 2 4 9 1,0 9 8 3 5 2 3 3 , , 6 3 4 8 1 9 2 2 2 5 8 3 , , 3 7 8 1 8 3 2 1 4 4 , , 7 13 9 6 7 2 1 4 4 , , 1 1 3 0 1 9 66 2 6 7 5 58 3 1 1 , , 9 5 9 1 9 5 4 5 8 4 1 7 , , 8 5 8 6 4 9 3 29 8 3 1 , , 1 8 2 8 7 2 1 14 6 1 3 , , 9 9 7 4 0 5 Total: 1920 6,305,492 3,816, 381 32,095 26,290 2,430, 726 345,021 341, 314 3,707 6,650,513 = £ 1919 4,556,312 3,955, 045 6,581 594, 686 292, 012 291, 951 4,848,324 1918 3,265, 850 2,139,331 9,033 1,117,486 122, 787 122,761 3,388,637 1917 521, 872 191, 757 430 329,685 i 66,714 66,714 1588,586 i Includes $5,572,190 of acceptances purchased from the Federal Reserve Bank of Boston. w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRIGT NO. 1 CHICAGO. 491 SCHEDULE 4.—Earnings and expenses. 1920 1919 1918 1917 EARNINGS. Discounted bills $25, 726, 750 $8,915,827 $6,447,466 $938,543 Purchased bills 2,989, 035 2,141, 789 1,253,259 394,340 United States securities 995, 377 736,241 310,616 443, 958 Municipal warrants 662 30, 880 Transfers—net earnings 374,000 143,495 275,758 170,634 Deficient reserve penalties (including interest). 174, 470 44, 569 65. 382 12, 223 Profits realized on United States securities 1,197 51', 820 25,196 Sundry profits 42,389 30,157 76, 784 6,504 Total earnings. 30,303, 218 12,012,078 I 8,481,747 2,022,278 CURRENT EXPENSES. Expenses of operation: Assessments account expenses Federal Reserve Board 101, 568 80,170 49,378 30,021 Federal Advisory Council (fees and traveling expenses) 1,046 816 827 Governors' conferences (including traveling expenses) 474 523 432 Federal Reserve agents' conferences (including traveling expenses) 559 84 381 243 Salaries— Bank officers 216, 541 158,083 105,819 63,761 Clerical staff 1,672, 550 881,142 405,610 85, 865 Special officers and watchmen 94, 494 64, 752 32, 550 10,289 All other 123, 324 80, 785 11,958 5,138 Life insurance premiums (employees' group insurance) 7,712 Directors' fees 5,015 4,915 4,920 2,050 Per diem allowance 1,100 590 740 590 Traveling expenses 3,476 1,249 1,941 961 Officers' and clerks' traveling expenses 39,667 28,147 5,536 1,227 Legal fees 7,500 5, 500 3,850 2,750 Rent 145, 751 97,477 53,078 22,915 Taxes and fire insurance 4,535 253 513 Telephone 19, 283 9,793 6,781 *"i,906 Telegraph 63, 875 24,216 12, 311 815 Postage 117, 389 98, 723 63, 774 14,362 Expressage 8,381 6,393 10, 231 9,510 Insurance and premiums on fidelity bonds 37, 898 8,736 25,157 5,876 Light, heat, and power 18,199 8,087 4,899 2,397 Printing and stationery 219, 420 101, 466 75, 877 18,002 Repairs and alterations 136, 292 40, 349 20,261 528 Currency shipments to and from member and nonmember banks 87,623 66,144 Currency shipments (other than Federal Reserve and Federal Reserve Bank notes) to and from Washington or a subtreasury 27,144 All other 100,685 84,905 179,972 37,578 Total expenses of operation 3,261,501 { 1,853,298 1,076,624 318,043 Federal Reserve currency (original cost including shipping charges) ." ' 550, 291 400, 418 388, 682 159,825 Miscellaneous charges account note issues 102, 672 62, 558 13, 004 2,314 Taxes on Federal Reserve Bank note circulation 174, 252 133,970 Furniture and equipment 289, 064 98, 080 172,365 32,225 Bank premises 75, 460 Total current expenses. 4, 453, 240 | 2,548,324 1,650,675 512,407 Current net earnings 25,849,978 i 9,463,754 6, 831,072 1, 509, 871 PROFIT AND LOSS ACCOUNT. I Earnings 30, 303,218 12. 012,078 8,481, 747 2,022,278 Current expenses 4, 453, 240 2, 548, 324 1, 650, 675 512,407 Current net earnings 25,8:9,978 9,463, 754 6, 831, 072 1, 509,871 Additions to current net earnings on account of— Amounts previously deducted from current net earnings for assessment account expenses of Federal Reserve Board 60, 704 All other 2,543 64,105 Total additions. 69, 307 64,105 Total 25,919, 285 9,463, 754 6, 831, 072 1,573,976 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

492 ANNUAL REPORT FEDERAL RESERVE BOARD. SCHEDULE 4.—Earnings and expenses—Continued. 1918 1917 PROFIT AND LOSS ACCOUNT—continued. Deductions from current net earnings on account of— Bank premises $29,062 $820,000 Reserve for depreciation United States bonds 9,984 $237,118 Assessment account expenses Federal Reserve Board, January-June, 1920 66, 764 All other 4,490 786 $25,991 43,001 Total deductions 43, 536 887,550 I 25, 991 280,119 Net earnings available for dividends, surplus, and franchise tax. 25, 875, 749 8, 576,204 6, 805,081 1,293, 857 Dividends paid 792, 769 700, 807 604,635 862, 259 Transferred to surplus fund 14,688, 500 7,875, 397 i 6,200,446 215, 799 Franchise tax paid United States Government 10,394,480 215, 799 1 Includes $3,100,223 reserve for Government franchise tax transferred to surplus fund in 1919. SCHEDULE 5.—Currency receipts from and shipments to member and nonmember banks. [In thousands of dollars.] Receipts. Shipments. Total receipts. Total shipments. Month. m b F e a r m n o k m b s e . r m b F n a e r o n m o n k m b - s e . r m b e a T m n o k b s e . r m b n a e T o n m n o k b - s e . r 1920 1919 1918 1920 1919 1918 January 77,690 1,082 60,663 140 78,772 70,026 60,803 24,125 February 45,559 1,284 80,205 278 46,843 29,799 80,483 36,352 March 71,150 1,304 84,650 12 72,454 34,680 84,662 42, 705 April 75,314 2,226 90,458 11 77,540 44,528 90,469 43,009 May 76,475 1,720 85,706 59 78,195 56,343 139,642 85,765 38,659 125,465 June 86, 914 1,956 87,281 77 88, 870 54,307 31,160 87,358 41,723 39,932 July 90,206 1,641 89,461 33 91,847 64,181 34,674 89,494 49,329 34,637 August 73,634 1,202 91,519 48 74, 836 45,640 32,255 91,567 66, 853 39,433 September... 81, 870 1,322 94,834 102 83,192 51,400 25,465 94,936 49,094 58,482 October 85,105 1,099 89,460 102 86,204 64, 345 33,712 89,562 68,545 47,135 November... 88,197 1,667 78, 818 397 89, 864 56,150 37,685 79,215 62,872 54,523 December 100,934 2,133 102,027 754 103,067 76,702 46,343 102,781 90,922 45,843 Total: 1920.. 953,048 18,636 1,035,082 2,013 971,684 1,037,095 1919.. 641,398 6,703 609,106 5,082 648,101 614,188 1 Figures previous to May, 1918,not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1—-CHICAGO. 493 SCHEDULE 6.—Operations of check clearing and collection department. [Amounts in thousands of dollars.] Items drawn on banks in own district. Month. Lo R c e a s te e d rv e i n B a F n e k d a e n ra d l Lo e c r a a t l e R d e o s u e t r s v id e e B F a e n d k - Ite T U m n r s i e te a d d s r u S a r w ta e t n r e s. o o f n Ite s t o h m e t r h e v s i e r e r f o b F B r r w e a a d n n a e c r k r d h s a e e l d s a R . n t e d o branch cities. and branch cities. Number. Amount. Number. Amount. Number. Amount. Number. Amount. January 902,462 887,718 2,993,566 383,358 177,287 28,547 224,361 40,820 February 790,797 818,099 2,801,616 366,536 142,578 30,096 211,856 37,845 March 1,175,744 1,321,978 3,762.961 718,405 261,611 44,001 315,616 69,647 April 979,962 1,025,064 3,440,218 500,291 382,827 62,217 303,211 51,877 May 840,267 921,784 3,284,187 452.754 264,511 33,498 272,677 48,185 June 990,456 1 073,982 3,694,338 527;612 348,453 38,323 296,780 63,451 July 940,771 98-5,491 3,605,925 494,440 230,242 35,301 297,637 49,738 August 879,842 928,747 3,477,801 475,246 172,399 35,115 282,470 51,527 September 1,000,823 1,078,849 3,665,225 517,993 271,913 59,409 299,356 64,411 October 929,630 978,893 3,756,212 486,719 422,600 30,416 314,870 54,544 November 935,506 875,225 3,605,029 427,992 356,399 35,320 344,596 50,640 December 1,076,088 906,929 3,844,898 413,927 416,244 39,106 326,482 53,652 Total: 1920 11,442,348 11,802,759 41,931,976 5,765,273 3,447,064 471,349 3,489,912 636,337 1919 7,920,315 9,189,554 23,274,806 3,382,981 4,231,417 918,985 2,033,775 481,111 1918 3.578,224 7,194,832 10,213,426 2,120,581 2,903,398 1,243,829 1,073,410 292,992 1917 1,809,925 4,376,888 839,288 512,301 Total.i Month. 1920 1919 1918 1917 Number. Amount. Number. Amount. Number. Amount. Number. Amount. January 4,297,676 1,340,443 2,261,032 1,075,673 836,676 622,333 578,277 February 3,946,847 1,252,576 2,051,658 890,879 834,042 537,869 449,476 March 5,515,932 2,154,031 3,043,958 1,148,270 1,044,707 800,988 539,912 April 5,106,218 1,639,449 2,993,060 1,002,192 1,091,354 779,647 561,492 May 4,661,642 1,456,221 2,846,708 1,108,582 1,137,406 868,758 572,549 June 5,330,027 1,703,368 2,917,957 1,151,520 1,240,907 914,532 592,658 July 5,074,575 1,564,970 3,035,985 1,120,552 1,687,310 980,222 630,184 August 4,812,512 1,490,635 3,058,468 1,123,903 1,755,998 978,260 605,391 September 5,237,317 1,720,662 3,422,012 1,349,104 1,775,672 999,314 624,259 450,992 October 5,423,312 1,550,572 3,918,864 1,290,698 2,206,369 1,261,938 831,625 624,586 November 5,241,530 1,389,177 3,548,737 1,164,379 1,888,979 995,832 758,953 644,767 December 5,663,712 1,413,614 4,361,874 1,546,879 2,269,038 1,112,541 793,626 643,877 Total: 1920.... 60,311,300 18,675,718 1919 37,'460,'3i3"i3,"972,*63i" 1918 17,768,458 10,852,234 1917 7,538,402 2 2,364,222 1 Exclusive of duplications on account of items handled by both parent bank and branch. 2 September to December, figures for previous months not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8.—ST. LOUIS. WM. MCO. MARTIN, Chairman and Federal Reserve Agent. GENERAL BUSINESS CONDITIONS DURING 1920. Financial and business results in 1920, the second year of readjustment from a war to a peace basis, in point of variety and significance, are among the most notable which this country has experienced. The outstanding feature in a long list of unusual events was the astonishingly rapid change from conditions of great business activity and feverish buying to industrial inertia and the collapse of purchasing by merchants and the public. This transition came in the second half and was considerably accelerated in the two final months of the year. Symptoms were not lacking during the initial months which pointed cogently in the direction of what ultimate developments might be, and the chain of incidents beginning in January led logically to the final consummation. The end of 1919 left commodity prices at abnormally high levels and inflation was general in all branches of activity. Spending was on an almost unprecedented scale, and merchants and manufacturers found it difficult to supply the goods wanted. Cost was of secondary consideration, the main object being to get things. As the early stages of the year progressed these manifestations became more striking until about the middle of June, when the peak of the upward movement was reached. Intensive effort was put forth in all quarters to speed up production in order to realize top prices, and as in the case of consumers, scant regard was given to expense. Meanwhile an underlying current of resentment and reaction against the high cost of living was gaining steadily in strength. The war being over for many months, the public deemed it high time that something be done toward the restoration of a normal status. This topic was an appealing and popular one and was taken up extensively by the press, with the result that specific movements were started to bring down prices. Most memorable among these was the formation of the so-called overall clubs, which, while not productive of immediate results, did much to promote sober thinking and affect sentiment. Toward the middle of the summer signs of slowing down in business became more numerous and clearly defined. Prices of basic commodities, notably silk, wool, sugar, and hides, gave way, and confidence in values of other things was shaken. Merchants adopted greater conservatism in buying, especially for forward delivery. The great commodity markets were changing from a position of complete domination by sellers to the buyers' advantage. Withal labor continued well employed, crop prospects were splendid, and buying power of the public had not been impaired at any point, so 494 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8—ST. LOUIS. 495 that in many quarters it was difficult to believe that the pace would slacken. However, readjustment had set in and, due to the steadying influence of the Federal Reserve System, proceeded not too fast but within safe limits. Interests holding out to the verylast in the hope of realizing the extreme high prices, and thus making big profits, had to bear the brunt of the radical reaction of the two closing months of 1920. The year closed with the most difficult stages of readjustment successfully disposed of. AGRICULTURAL CONDITIONS. An unfortunate feature in the year's reversal of conditions was that crops were planted and harvested during the period of heaviest costs, while their marketing fell largely in the months of decline. This was felt keenly in the Eighth Federal Reserve District, the prosperity of which is dependent in a great measure upon agriculture. In the Southern States cotton was produced at heavier expense than during any preceding year. The sharp decline in prices of that staple caused losses to planters in many instances, and sluggish marketing necessitated longer and more extensive financing than heretofore. In a greater or lesser degree, similar conditions obtained in areas where cereals and other crops are raised. Early in the year the accounts relative to crops constituted a decided stimulant. Produce which was harvested early had turned out well, while there was every assurance, which broad acreages and ideal growing conditions could give, that yields of crops ripening later would be of record proportions. These hopes were realized, the year's agricultural output adding tremendous new wealth to the country, but the effect on immediate business fell below what had been anticipated, due to the drastic slump in market prices of virtually everything produced. Spending programs in the country underwent downward revisions, and new construction and improvements in the rural districts were postponed or abandoned. These changes ramified to city distributor and manufacturer and finally back to the producer, thus forming a completed economic cycle which, with other less tangible factors, wrought stagnation in business toward the close of the year. OPERATIONS OF THE FEDERAL RESERVE BANK. The sequence of developments arising from the great war brought many new problems, in the solution of which the Federal Reserve System had an important part. Credit requirements for the conduct of business expanded to unprecedented dimensions and extended through longer periods than in any preceding year. This was particularly true of the Eighth Federal Reserve District, which includes within its boundaries a typically agricultural area. The crops produced were large, and were raised at a greater cost than ever before. This fact, coupled with the slowness with which several important staples moved to market, entailed enormous financing. The Federal Reserve Bank rendered invaluable aid in supplying money and credit for agricultural requirements and the needs of commerce generally. It also aided the Government in its financial operations. Specifically the year was marked by added features in the service which the Federal Reserve Bank renders and a broadening of those heretofore undertaken. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

496 ANNUAL REPORT FEDERAL RESERVE BOARD. FINANCIAL RESULTS OF OPERATION. Gross earnings of the Federal Reserve Bank of St. Louis for 1920 aggregated $7,180,117.23. Current expenses amounted to $1,924,- 455.92, leaving net earnings of $5,255,661.31. Out of the net earnings a reserve of $34,615 was set aside to cover further depreciation in United States securities owned, and $365,000 of the cost of bank premises was charged off. Dividends amounting to $253,711.36 were paid during the year. The amount transferred to surplus was $4,621,854.39. The chief source of revenue during 1920 was bills discounted for member banks, $6,382,356.63 of the gross earnings being derived from these transactions. Schedule 4 shows in detail the earnings and expenses for the years 1919 and 1920. Comparative balance sheets as of December 31, 1917 to 1920, are given in Schedule 1. These show that the total resources of the Federal Reserve Bank of St. Louis decreased from $301,094,164.75 on December 31, 1919, to $263,090,062.01 on December 31, 1920. Between these dates its gross deposits decreased from $131,963,641.07 to $104,269,005.59, and its earning assets increased from $128,874,- 552.62 to $133,308,109.18. Reserve deposits of member banks decreased from $72,282,788.29 to $66,902,690.78 and Federal Reserve notes in circulation fell from a total of $145,298,330 to $135,785,330. The movement of the principal asset and liability items during the year are shown in Schedule 2 and accompanying chart. RESERVE POSITION. On January 2, 1920, the adjusted reserve of this bank against net deposit and Federal Reserve note liabilities was 58.5 per cent and the actual reserve was 46.8 per cent. The bank held $23,789,634 of paper acquired from other Federal Reserve Banks. Its reserve position was strong, and it continued to discount for other Reserve Banks until the middle of January. From that time on the demand for accommodations in this district steadily increased and the reserve ratio w^ent steadily down. On March 23 it was necessary to rediscount with other Federal Reserve Banks paper amounting to $2,529,000 in order to protect our reserve position, the adjusted reserve on that date being 38.5 per cent. The demand for funds from all parts of the district kept up in an increasing degree and the reserve decreased proportionately. On May 25 the adjusted reserve was 14.4 per cent, and paper amounting to $52,529,000 was under rediscount with other Federal Reserve Banks. The low point in the reserve position was reached on May 28, with an adjusted reserve of 13.9 per cent. To meet this situation the board of directors inaugurated the progressive discount rate, wThich became effective May 26. The reserve position began to improve almost immediately. On June 1 the adjusted reserve had increased to 15.3 per cent, and by July 15 it had increased to 28.5 per cent. It remained at about that level except for a slump in October and the early part of November. In November and December the reserve position showed pronounced improvement, and on December 9 the last rediscount with other Federal Reserve Banks matured. The actual and adjusted reserve on that date was 40.6 per cent. On Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT ISTO. 8 ST. LOUIS. 497 December 31, 1920, the actual and adjusted reserve against net deposit and Federal Reserve note liabilities was 44.3 per cent. The total cash reserves, net deposit, and Federal Reserve note liabilities and actual and adjusted reserve percentages at the close of business each Friday are shown in Schedule 2 and accompanying chart. DISCOUNT OPERATIONS. The total amount of paper discounted for member banks during 1920 was $2,438,040,713.61, exclusive of discounts acquired from other Federal Reserve Banks and bankers7 acceptances purchased. Of this amount $1,074,803,559 was commercial or single-name paper; $13,471,151 consisted of trade acceptances, or two-name paper; and $1,349,766,003.60 consisted of member banks7 15-day collateral notes. Of the $1,074,803,559 of commercial paper discounted, $94,417,330 was secured by Liberty bonds, Victory notes, and certificates of indebtedness; and of the $1,349,766,003.60 of member banks' collateral notes, $1,346,813,634 was secured by such Government obligations. The total paper discounted for member banks during 1920 shows an increase of $337,410,118.10 over the amount discounted in 1919. During 1919 this bank discounted papjer entitled to classification as agricultural or live-stock paper amounting to $4,762,082.24, while in 1920 such paper amounted to $24,591,095.49, or an increase of $19,829,013.25. While this increase is very large, it does not measure the true amount of assistance rendered to agricultural interests. A great deal of the paper offered by the smaller banks in this district is directly for the benefit of agricultural interests, although it can not technically be classified as agricultural or live-stock paper. An analysis of loans as of December 15, 1919, and December 15, 1920, indicated that during 1919 approximately 11 per cent of our total loans was for the production and sale of agricultural products, while in 1920 about 29 per cent was for benefit of the agricultural communities. The total number of bills handled during 1920 was 83,779 as follows: Rediscounts, 68,353; member banks7 collateral notes, 13,459, and bills bought, 1,967. There were 49,913 more bills handled than in 1919. Of the 571 member banks, 386 different member banks borrowed from this bank during 1920, which is an increase of 81 over the number accommodated in 1919. During the year the Federal Reserve Bank of St. Louis rediscounted with other Federal Reserve Banks $315,498,734.75 of paper. Of this amount $166,000,023 was secured by Government obligations, $143,499,385.36 commercial paper, and $5,999,326.39 consisted of bankers7 acceptances. The amounts rediscounted with other Federal Reserve Banks were as follows: Philadelphia, $24,999,840; New York, $60,000,595.23; Boston. $133,971,332.32; San Francisco, $12,500,000; Cleveland, $81,497,967.20; and Minneapolis, $2,529,000. The Federal Reserve Bank of St. Louis discounted during the year for other Federal Reserve Banks $13,000,000 of paper, all of which was done in January. Of this amount $8,000,000 was for Philadelphia and $5,000,000 for New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

498 ANNUAL REPORT FEDERAL RESERVE BOARD. TRADE ACCEPTANCES. During 1920 this bank discounted a total of $13,471,151 of trade acceptances for member banks, which is an increase of $5,524,971 as compared with 1919. The increase in the use of trade acceptances is gratifying because it was made in the face of abnormal conditions, especially in the southern portions of the district. BANKERS7 ACCEPTANCES. During the past year this bank purchased a total of $36,019,617.46 of bankers7 acceptances. Of this amount $35,769,617.46 was purchased from banks and dealers in the district and $250,000 through the Federal Reserve Bank of New York. This is a decrease of $91,803,300 under the amount purchased in the open market and from other Federal Reserve Banks during 1919. The rates on these acceptances ranged from 4 \ per cent to 6f per cent. T Conditions in this district were not favorable to the development of bankers' acceptances during the past year. Member banks, generally speaking, did not have surplus funds to invest and this institution consistently followed the polie}^ of not encouraging banks to indorse bills for profit. Efforts to encourage the use of bankers' acceptances have been further hampered by the unusual amount of frozen credit in the district, particularly the southern parts. In an effort to sustain the market and to encourage the investment of a bank's surplus funds in liquid assets, this bank established, on January 24 ; 1920, a preferential rate for the discount of indorsed bank bills. This preferential rate has been carried since that date and has afforded a ready outlet for banks which have not borrowed in excess of their basic line. The open-market rate for the purchase of indorsed bank bills has varied according to conditions, and has been used freely by member banks which have borrowed in excess of their basic line because sales to this bank under these rates are not included in the credit structure nor subject to its progressive rates of discount. DISCOUNT RATES. During the year the normal discount rates of this bank on commercial or agricultural paper did not exceed 6 per cent, and the normal rates on collateral notes or rediscounts secured by Government war obligations were not in excess of 5J per cent. As previously mentioned, effective May 26, 1920, this bank established a progressive discount rate, which was continued through the year. A member bank was charged the normal discount rate on its borrowings up to the amount of its basic line, and on each additional one-fourth of its basic line borrowed one-half per cent was added to the rate. The basic line established for each member bank was a theoretical amount which the Reserve Bank could lend it, provided all member banks called on it for accommodations at the same time. The basic line was calculated by adding the amount paid in by a member bank on its capital stock subscription to 65 per cent of its required reserve and then multiplying this total by 2\. The reserve balances and requirements of member banks in this district are figured on an average of a 7-day period for banks in St. Louis, Little Rock, Louisville, and Memphis, and on a 15-day Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8 ST. LOUIS. 499 period for all other banks. In like manner the charges under the progressive rates were figured on the average borrowings of member banks for the same periods used in figuring their average reserves. Liberty bonds or Victory notes actually owned by the borrowing bank on April 1, 1920, and Treasury certificates of indebtedness actually owned by the borrowing bank on date of hypothecation were exempted from the credit structure and from the application of the progressive discount rate. Other borrowings which perhaps directly reflected unwarranted credit expansion or frozen credits were subject to the progressive rate of discount. On December 31 there were 571 member banks in this district. The number of banks subject to the progressive discount rate varied from 28 in May to 111 in December. The number of banks which borrowed in excess of their basic lines was always larger than the number subject to the progressive rates of discount because of the exemption of collateral notes secured by Government war obligations. There was no period during the year when 20 per cent of the member banks were paying a progressive rate of discount. Over 80 per cent of the banks were, therefore, receiving accommodation at our normal rates of discount. The average rate of earnings of the bank on all bills discounted for the last half of the year, exclusive of the interest earned under the schedule of progressive rates, was 5.64 per cent, while the average earnings, including the progressive rates for the same months, amounted to 6.13 per cent. The following table gives by months the number of member banks subject to the progressive rates and the average rate of earning on bills discounted: Number of Average Average bo b rr a o n w k i s ng Number of ear r n a i t n e g o f on ea r r a n t i e n g o f on Month. i b n a e s x ic c e l s i s n o e f subject to di a sc ll o b u i n ll t s ed,di a sc ll o b u i n ll t s ed, on the firstprogressiveexclusive ofincluding of each progressiveprogressive month. rates. rates. 1920. Per cent. Per cent. Mav 132 28 June .. 149 79 July 154 77 5.68 6.07 August 159 89 5.70 6 03 September... 166 106 5.41 5.74 October ... 172 109 5.47 5.86 November 179 111 5 79 6 80 December 182 111 5.82 6.47 FEDERAL RESERVE NOTES. The amount of Federal Reserve notes outstanding at the close of 1919 was $164,718,955. Adding the $106,470,000 of notes issued during 1920 and subtracting the $3,350,000 of fit notes returned by the bank to the Federal Reserve Agent and the $112,447,570 of unfit notes redeemed, left a total of $155,391,385 Federal Reserve notes outstanding on December 31, 1920. To secure these outstanding notes there were $49,337,145 of gold and $116,079,990.83 of eligible paper pledged with the Federal Reserve Agent. Of the $155,391,385 Federal Reserve notes outstanding, $18,020,705 were held by the Federal Reserve Bank and its branches and $1,585,350 were in transit to Washington for redemption, leaving $135,785,330 in actual circulation on December 31, 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

500 ANNUAL REPORT FEDERAL RESERVE BOARD. FEDERAL RESERVE BANK NOTES. Issues of Federal Reserve Bank notes during the year 1920 totaled $11,880,000, all of which were issued in replacement of unfit notes redeemed. The total amount of unfit Federal Reserve Bank notes redeemed during the year was $18,879,400, leaving a net reduction in the amount of outstanding notes of $6,999,400. SHIPMENTS OF CURRENCY AND COIN. In addition to absorbing the cost of currency shipments to and from member banks and the cost of coin shipments from members, this bank and its branches inaugurated in August the practice of assuming the cost of shipments of subsidiary and minor coin to member banks. In September this bank advised its member banks that shipments of currency and coin would be made upon request to their correspondents, located in this district, free of expense if the correspondent was a member bank, and at the expense of the bank making the request if the correspondent was a nonmember. The member banks availed themselves freely of this privilege and it has resulted in the saving of infinite labor in the case of the larger banks, in that it eliminates rehandling big sums of money intended for transmission to country banks. During the year the Federal Reserve Bank of St. Louis and its branches shipped a total of $370,334,398.12 currency and coin, of which $344,456,290.43 was to member banks and $25,878,107.69 to nonmember banks. It received a total of $443,426,788.16, of which $412,140,884.27 was from member banks and $31,285,903.89 from nonmembers. CLEARINGS. In the matter of checks handled by the St. Louis Federal Reserve Bank, 1920 was marked by considerable growth. This was due in a great measure to successful results of the campaign for par points, which in this district was completed in February. With the exception of 187 banks in Mississippi, all the banks of the district are now remitting at par. The check totals were further swelled by the fact that 18 banks in St. Louis and all the banks of East St. Louis clear directly through this bank, and by additions resulting from taking over the clearing functions of the Louisville clearing house by the Louisville branch. During the year 31,070,661 checks, amounting to $7,535,897,265, were handled by the Federal Reserve Bank of St. Louis and its branches. These figures indicate an increase 11,963,026 in the number of checks and $1,527,361,395 in amount over the respective totals in 1919. At the close of 1920 the parent bank and its branches were handling an average of 110,169 clearing items daily, as compared with a daily average of 88,500 at the close of 1919. COLLECTIONS. To a greater extent than ever before, member banks during 1920 made use of facilities of the Federal Reserve Bank of St. Louis for the collection of such items as notes, drafts, acceptances, coupons^ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8 ST. LOUIS. 501 etc., with the result that the totals representing such operations for the year were nearly three times as great as in 1919. The bank handled in 1920 a total of 90,593 collection items, amounting to $180,848,903.41, which compares with 34,372 items, amounting to $87,257,166.92 in 1919. Of the collection items handled 81,674 items, aggregating $167,612,216.77, were collected, leaving 8,919 items,, amounting to $13,236,686.64 returned unpaid. The average item handled in 1920 was approximately $1,996, and in 1919 the average was about $2,538. The number of Government coupons handled in 1920 was 6,332,980, amounting to $28,606,861.67. This shows an increase of 679,585 in the number and $7,184,306.11 in amount over 1919. GOLD SETTLEMENT FUND. Due to the enormous growth in transactions handled between Federal Reserve Banks and especially in the case of special transfers of funds for member banks and the Treasurer of the United States, and rediscounting between the Federal Reserve Banks, the gold settlement fund has proved an invaluable part of the system's machinery. The private-wire system linking the Federal Reserve Banks, their branches, and the Federal Reserve Board at Washington has facilitated and expedited the operations involved in settlements through the fund. During 1920 operations through the gold settlement fund were larger than ever before and show a substantial increase over the totals of 1919. On December 26, 1919, the credit balance in this account was $13,373,782.78, while on December 30, 1920, the balance was $21,852,704.38. The total settlements were as follows: Receipts, $6,629,605,118.05, and disbursements, $6,621,126,196.45, indicating a net gain in balance of $8,478,921.60. WIRE TRANSFERS. During 1920 there were 30 transfers sold by draft, amounting to $4,816,907.04. No transfers were bought during the period. Transfers bought and sold were virtually discontinued in October, 1919, and the transfers considered as sold in 1920 represent checks on other Federal Reserve Banks issued by this bank without charge. In the year the Federal Reserve Bank of St. Louis and its branches received 17,982 incoming wire transfers, totaling $756,496,519.11, and dispatched 32,068 outgoing wire transfers, totaling $1,225,250,058.53. NATIONAL BANKS GRANTED FIDUCIARY POWERS. Nine national banks in the district were granted permission by the Federal Reserve Board in 1920 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. One national bank which had received fiduciary powers as originally provided in the Federal Reserve Act was authorized to exercise the additional powers conferred by the amendment of September 26, 1918. On December 31, 1920, there were &% national banks in this district authorized to exercise fiduciary powers, of which 13 were located in Arkansas, 18 in Illinois, 15 in Indiana, 19 in Kentucky, 1 in Mississippi, 15 in Missouri, and 1 in Tennessee. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

502 ANNUAL REPORT FEDERAL RESERVE BOARD. MONTHLY REPORT ON CONDITIONS. During the year the bank continued to compile each month a report on business and agricultural conditions. The scope of the report was considerably broadened. A number of new lines of study and investigation were undertaken, and the results included in this bulletin. That its message is receiving appreciation was evidenced by the large number of requests to be placed on the mailing list, and the space given it in the editorial and news columns of newspapers published in St. Louis and other cities of the district. RELATIONS WITH BANKS. The principal developments in the relationship between the Federal Reserve Bank of St. Louis and nonmember State banks in 1920 were the broadening of the check collection system and shipping of currency and coin to correspondents of member banks. MOVEMENT OF MEMBERSHIP. On January 1, 1920, the Federal Reserve Bank of St. Louis had a total of 540 member banks, consisting of 472 national banks and 68 State banks and trust companies. Its authorized capital was $8,130,900, of which $4,064,450 was paid in. During 1920 fifteen new national banks were enrolled as members, six liquidated and one consolidated with another national bank. Twenty-four State banks and trust companies were admitted to membership, and one State bank was converted into a national bank. On December 31, 1920, this bank had a membership of 571, representing a gain of 31 for the year. There were 480 national banks and 91 State banks and trust companies. The total authorized capital stock was $8,741,000, of which $4,364,750 was paid in. The paid-in capital increased $300,300 during the period under review. On December 31, 1920, there were 1,015 eligible nonm ember State banks and trust companies in this district with total resources aggregating approximately $603,279,000. The total resources of the 91 member State banks and trust companies amounted to $390,073,000, which is almost 40 per cent of the total resources of all eligible State institutions in this district. Several applications of State institutions for membership were pending at the close of the year. EXAMINATION DEPARTMENT. The department of examinations was enlarged during the year and examiners for the Federal Reserve Bank participated with the various State banking departments of the district in 80 examinations of 69 member State banks and trust companies. FOREIGN ACCOUNTS. In course of the year 1920, the balance of the participation of the Federal Reserve Bank of St. Louis in the Bank of England sterling gold account was reduced from $6,172,049.99 to $3,029,109.69. Foreign Government credit balance of the Argentine Government at the beginning of 1920 was $3,397,820.65 and on October 28 was Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8 ST. LOUIS. 503 closed out entirely, a small balance being transferred to the Federal Reserve Bank of New York. On June 16 a proportionate share of the deposit of the Bank of Japan in the amount of $188,000 was placed upon the books of this bank, which balance is still carried. On November 3 the Bank of France earmarked gold account was opened in the amount of $155,100, which balance was also outstanding at the close of the year. OPERATIONS OF BRANCHES. During the year this bank continued to operate its branches at Louisville, Ky., Memphis, Tenn., and Little Rock, Ark. Facilities afforded by these auxiliaries were used freely by banks in the areas assigned to them. Transactions of all kinds were heavy at the branches, necessitating the enlargement of personnel. Discount operations in the branch cities were particularly neavy, and the checkcollection system was used to such an extent that the aggregate number of items handled by the three branches shows a marked gain over the preceding year. Louisville branch.—Total earnings of the Louisville branch for the year 1920 amounted to $939,956.91, and its expenses were $231,338.79, leaving net earnings of $708,618.12. Of the total earnings, $919,681.16 were derived from bills discounted for member banks. During the year this branch discounted for member banks a total of $434,793,549.61 of paper and purchased bankers7 acceptances in an aggregate of $1,717,115.90. During 1920 the Louisville branch handled 5,364.812 clearing items, aggregating $1,264,438,485. It handled a total of 14,940 collections, amounting to $27,559,504.99, and 1,091,801 Government coupons, amounting to $5,935,621.47. Its currency receipts from member and nonmember banks for the year amounted to $64,686,405.06 and its shipments amounted to $51,934,498. At the close of the year the Louisville branch had 79 officers and employees, which compares with 53 officers and employees at the close of 1919. The number of banks assigned to it was 96. Memphis branch.—In 1920 total earnings of the Memphis branch amounted to $1,156,254.45 and the expenses to $305,878.78, with resultant net earnings of $850,375.67. Of the total earnings, $1,133,117.63 were derived from bills discounted for member banks. During the year this branch discounted a total of $264,222,585.86 of paper for member banks and purchased bankers' acceptances in the sum of $123,632.79. The Memphis branch in 1920 handled a total of 2,815,997 clearing items, representing $695,518,201. It handled 16,649 collection items, amounting to $32,571,303.91, and 460,702 Government coupons, with money equivalent of $1,962,744.34. Its currency receipts from members and nonmembers f or the year amounted to $61,204,024, and its shipments amounted to $54,802,373. At the end of 1920 the Memphis branch had a total of 84 officers and employees, which compares with 68 at the close of business on December 31, 1919. The number of banks assigned to it was 49. Little Rock branch.—Total earnings of the Little Rock branch for 1920 totaled $572,751.99, and its expenses were $164,805.35, leaving 45525°—21 33 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

504 ANNUAL REPORT FEDERAL RESERVE BOARD. net earnings of $407,946.64. Of 'the total earnings, $555,826.61 were derived from bills discounted for member banks. In course of the year this branch discounted for member banks an aggregate of $151,484,929.14 of paper. A total of 3,705,327 clearing items was handled by this branch in 1920, amounting to $643,362,614. It handled, in addition, 6,698 collection items, amounting to $15,248,496.95, and 271,061 Government coupons, with aggregate value of $858,686.29. Its currency receipts from members and nonmembers for the year amounted 'to $27,430,765, and its shipments amounted to $24,540,426. At the close of the year the Little Rock branch had 68 officers and employees, which compares with 38 at the close of the preceding year. The number of banks assigned to it was 68. FISCAL AGENCY OPERATIONS. As fiscal agent of the United States Government, during 1920 the Federal Reserve Bank of St. Louis continued to receive and disburse funds for its account. It handled the sale and delivery of United States certificates of indebtedness and war savings stamps in this district and also the exchange and conversion of Liberty bonds for banks and the public. CERTIFICATES OF INDEBTEDNESS. In course of the year 10 offerings of tax certificates of indebtedness were made by the Government, two in anticipation of income and excess-profit taxes due in 1920 and eight in anticipation of similar revenues due in 1921. Financial institutions, corporations, and individuals in this district subscribed to $32,655,500 of the first two issues and to $55,324,000 of the other eight issues. There were also eight offerings of so-called loan certificates of indebtedness. The total subscriptions to these amounted to $40,955,000. The number of different banks in the district subscribing to certificates of indebtedness during the year was 1,575. During the year $211,917,500 of certificates of indebtedness were redeemed by the Federal Reserve Bank of St. Louis and its branches. DEPOSIT OF TREASURY FUNDS WITH BANKS. Three banks in this district qualified in 1920 for deposits arising out of the sale of Treasury certificates of indebtedness. Adding those which had qualified prior to January 1, 1920, and deducting those which were dropped from the lists, there were 478 Government depositaries at the end of the year under review. WAR-SAVINGS STAMPS, ETC. During the year 12,016 thrift stamps, >vith maturity value of $3,004; 11,541 war-savings stamps, maturity value $57,705, and 6,225 Treasury savings certificates in denominations of $100 and $1,000, maturity value $1,361,400, were reported sold by agents in the Eighth Federal Reserve District. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8—ST. LOUIS. 505 CONVERSIONS AND EXCHANGES OF LIBERTY BONDS. Early in March the exchange of permanent third Liberty loan coupon bonds for temporary securities of the same issue was authorized.. Almost simultaneously with this exchange occurred the delivery of permanent first converted and second converted Liberty loan bonds against temporary bonds surrendered. During March, April, and May an enormous volume of these bonds in temporary form was surrendered for exchange by subscribers. The following months, however, witnessed a marked decline in the number of pieces handled and the congestion was relieved. Prompt deliveries on permanent bonds were maintained throughout the period, with the result that banks were well and regularly served. During the year the Federal Eeserve Bank of St. Louis and its branches converted 215,338 Liberty bonds and Victory notes of the par value of $26,815,400, exchanged 210,833 coupon bonds, aggregating $44,765,500, for registered bonds, exchanged 7,997 registered bonds, amounting to $2,568,600, for coupon bonds, and exchanged 1,356,283 temporary bonds, amounting to $247,241,950, for permanent bonds. There were also 135,691 bonds, aggregating $15,943,850, exchanged for similar bonds of different denominations, and 9,699 registered bonds amounting to $3,331,550 were transferred. DELIVERY OF PERMANENT LIBERTY BONDS ON CONSIGNMENT. Pursuant to Treasury Department Circular No. 164, 33 banks and trust companies which had previously qualified as Government depositaries under Treasury Department Circular No. 92, as amended and supplemented April 17, 1919, availed themselves of their privilege to obtain permanent Liberty bonds on consignment to exchange for temporary bonds. This bank had custody of all collateral offered as security for consignment of bonds and performed all duties incident to the consignment of permanent and surrender of temporary bonds for credit in permanent bond account. The largest amount of collateral in custody at any one time was held on March 25, when securities totaled $2,849,050. The largest amount of bonds outstanding on consignment at any given time was $2,345,050, on August 20. Deliveries of permanent Liberty loan bonds on consignment for the year amounted to $13,227,200, of which $788,950 were outstanding at the close of business December 31. These were divided among the several issues as follows: First Liberty loan bonds, converted 4| per cent of 1932-1947 $667, 800 Second Liberty loan bonds, converted 4^ per cent of 1927-1942 3,476, 950 Third Liberty loan bonds, 4J per cent of 1928 9,062,450 Total , 13, 227, 200 WAR FINANCE CORPORATION. On account of the discontinuance of War Finance Corporation operations, activities during 1920 were in the nature of redemption only. On April 1, 1920, the $200,000,000 issue of series "A" oneyear 5 per cent gold bonds matured. The Federal Reserve Bank of St. Louis purchased $303,000 of these bonds prior to maturity for account of the War Finance Corporation. On and after maturity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

506 AKNUAL REPORT FEDERAL RESERVE BOARD. a total of $3,646,000 of these bonds was redeemed and canceled by this bank. Coupons from the bonds were redeemed and canceled during the year in the total amount of $111,150. TAKING OVER THE FUNCTIONS OF THE ST. LOUIS SUBTREASURY. On November 1, 1920, the Federal Reserve Bank of St. Louis was authorized to exchange, replace, and redeem United States paper currency and with the discontinuance of the sub treasury a similar function will be assumed with respect to the handling of coin. These functions, however, have had but slight effect on the operations of the bank, except in its relations with the Treasury Department, inasmuch as they were already being performed as bank operations in its daily transactions with member and nonmember banks. All of the functions of the subtreasury are now being performed either directly or indirectly bj the Federal Reserve Bank of St. Louis and no difficulty is anticipated when the work of the subtreasury is taken over. SCHEDULE 1.—Comparative statement of condition. [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, Dec. 31, 1917. 1918. 1919. 1920. RESOURCES. Gold coin and certificates 5,089 4,056 2,757 5,129 Gold settlement fund, Federal Reserve Board. 17,884 12,474 17,888 21,763 Gold with foreign agencies , 2,100 233 6,172 155 Total gold held by bank 25,073 16,763 26,817 27,047 Gold with Federal Reserve agent., 3.2,366 66,674 61,625 49,337 Gold redemption fund 930 3,370 6,132 6,404 Total gold reserves 58,369 86,807 94,574 82, 788 Legal tender notes, silver, etc. 767 2,450 2,354 6,088 Total reserves., 59,136 19,257 96,928 88,876 Bills discounted: Secured by Government war obligations. 9,361 53,118 45,069 43,776 All other 24,666 17,585 32,611 71,156 Bills purchased in open market 7,363 7,293 32,804 1,200 Total bills on hand 41,390 77,996 110,484 116,132 United States Government bonds 2,233 1,153 1,153 1,153 United States certificates of indebtedness... 1 1,444 6,568 17,238 16,023 Total earning assets. 45,067 85,717 128,875 133,308 Bank premises 356 541 Uncollectediteme and other deductions from gross deposits 57,017 59,435 73,843 39,224 5 per cent redemption fund against Federal Reserve bank notes 317 672 623 Allother resources 219 509 420 530 Total resources.. 161,439 235,235 301,094 263,102 LIABILITIES. Capitalpaid in 3,475 3,799 4,064 4,365 Surplus 802 3,724 8,346 Government deposits 5,430 3,333 2,353 2,618 Due to members—reserve account 45,797 52,831 72,283 66,903 Deferred availability items 46,159 45,136 53,381 34,032 Other deposits,including foreign government credits 291 1,951 3,947 716 Totalgross deposits 97,677 103,251 131,964 104,269 Federal Reserve notesin actual circulation 59,923 120,037 145,298 135,785 Federal Reserve bank notesin circulation (net liability). 6,216 15,499 9,487 Allother liabilities 364 1,130 545 850 Total liabilities.. 161,439 235,235 301,034 263,102 1 One-year Treasury notes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8—ST. LOUIS. 507 FEDERAL RESERVE BANK OFST.LOUIS. MOVEMENT OF EARNING ASSETS DURING i'920. 25 25 o LI UNITED STATES SECURITIES lbs PURCHASEDBILLS HELD 100 60 — • ••» 40 20 PERCEttTAOEOFW/RPAFERTOTOTAL DISCOUNTS MRBAMKS1H DISTRICT. IPS | 1 1 1 1 1 1 1 1 1 1 1 \17S /SO ISO DISCOUNTED BILLS. (SEE NOTE BELOW) TOTAL EARNING ASSETS JAN\FEB\MAR.APR\MAY-JUHEJULYAU6\SEPT OCT. MOV. DEC. ji:3kjtersecured by OoverrimentJf&rObligations discoanted^ibrJSanJcs in&istrict. B .'JoCaLSFcqicrdiscounted 1br$anJCsiri£istrict. C:Jo£al 3iscou?tEed$hfterkeld'. SjuMxbdwcen, tines £ and C represents - wheretzIwrcKj&B-JkfierdisceaMtedLibr, d h b d J Z J U d i ^ t ih Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—Movement of principal asset and liability items during 1920. o [Amounts in thousands of dollars.] 00 Discounted "bills. Purchased bills. Reservepercentages. Discountedformember banks in this district. Federal Bate. e a a T s r s o n e t i t a n s l . g T he o l t d a . l c R F R o o w e e u e t s d h n i d e e t e r t i h r e s v r a - d e l A. Sec B u . red C. c m h o a P a s p u r e e k r d n - e i t n . R B F S o e e o a t s d l n h e d e k e r r v r t s a o . e l 1 T he o l t d a . l se U S cu n ta r i t i t t e e i s d es.re T s c e a o r s t v h a e l s. des N po e s t its. n c re i o t r i s t c o e e u n r s l v . a i e n - Actual. Ad e j d u .2 st- d > Banks.1 Total. w e b r y a n r m G o o e b v n li - t - P (B e - r s c - e A n ) t . o gations. Jan. 2. 131,408 80,858 48,271 59.7 7,372 -23,789 31,161 19,389 95, 820 61,121 143,411 46.9 58.5 9. 113,764 74,214 -4,500 69, 714 41,140 59.0 7,201 -13,953 21,154 18, 396 104, 682 56, 779 138, 726 53.5 63.0 16. 129, 817 95, 715 -12,970 82, 745 49,062 59.3 7,090 - 8, 578 15, 668 18, 434 95, 216 65, 347 136, 621 47.1 57.8 23. 133, 205 101,690 - 7,470 94,220 46,959 49.8 6,587 - 6,025 12, 612 18, 903 89, 445 65, 430 133, 849 44.9 51.7 30. 122, 935 93,367 93,367 48,300 51.7 9,197 - 1,663 10, 860 18, 713 95, 648 61, 255 134, 209 48.9 49.8 Feb. 6. 126,883 99,102 99,102 51,046 51.5 8,516 950 9,466 18, 315 93, 787 63, 247 134, 455 47.4 47.9 13. 124,314 96,072 96,072 50,405 52.5 9,798 9,798 18, 444 96,971 62,292 136, 668 48.7 48.7 20. 130, 715 102,281 102, 281 49,686 48.6 9,802 9,802 18, 632 88,150 59, 623 137,133 44.8 44.8 27. 135,163 105,995 105, 995 51,153 48.3 10, 524 10, 524 18, 644 85, 830 60, 740 138, 778 43.0 43.0 Mar. 5. 133, 850 104, 905 104, 905 57, 863 55.2 10,589 10, 589 18,356 78, 073 54, 422 138, 307 40.5 40.5 12. 132, 589 103,666 103, 666 55, 493 53.5 10, 509 10, 509 18, 414 37, 761 63, 544 137, 061 43.7 43.7 i 19. 138,464 110,123 110,123 56,368 51.2 9,988 9,988 18, 353 79, 679 61, 829 137, 695 39.9 39.9 26. 137,395 107, 857 11, 829 119, 686 56,580 47.3 11,130 11,130 18, 408 76, 882 59,837 136, 004 39.3 33.2 Apr. 2. 135,988 105,108 19,084 124,192 56,547 45.5 10,537 10, 537 20, 343 76, 386 57,506 136, 448 39.4 29.5 9. 132, 402 104, 411 25,327 129, 738 59, 238 45.7 9,597 9,597 18, 394 75, 848 54, 780 134, 702 40.0 26.7 W 16. 128,990 108,676 26,139 134, 815 59, 819 44.3 7,918 5,999 1,919 18, 395 79, 546 55, 527 134, 211 41.9 25.0 o 23. 131,103 109,910 30,668 140, 578 59,119 42.0 8,188 5,999 2,189 19, 004 77, 810 58,916 131, 767 40.8 21.6 I 30. 132,140 111, 063 35,636 146, 699 60,774 41.4 8,444 5,749 2,695 18, 382 76, 597 59, 540 131,087 40.2 18.5 May T 137,475 116,795 36,278 153, 073 61, 443 40.1 8,054 5,734 2,320 18, 360 76, 828 64, 703 131, 481 39.2 17.7 132,989 112,335 41, 731 154, 066 61, 601 40.0 7,424 5,128 2,296 18,358 81, 417 66,445 129, 996 41.4 17.6 21. 133,715 111, 904 46,922 158, 826 63, 604 40.0 7,431 4,075 3,356 18, 455 80,131 66,655 129,114 40.9 14.9 28. 131,948 110,344 46,492 156, 836 62, 879 40.2 6,800 3,568 3,232 18,372 76,124 60, 876 129, 084 40.1 13.9 June 4. 132,688 111, 263 43,838 155,101 61, 895 39.9 6,110 2,988 3,122 18, 303 78,398 63,553 129, 301 40.7 16.4 11. 127,147 105,120 37,969 143,089 58, 320 40.8 6,113 2,408 3,705 18, 322 80,149 61,367 127, 665 42.4 21.0 18. 127,418 104,674 29,500 134,174 55,250 41.2 6,183 1,900 4,283 18,461 78,366 60, 260 127,549 41.7 26.0 25. 128,805 106,679 25,513 132,192 54,601 41.3 4,867 1,210 3,657 18,469 79,631 63,958 126,289 41.9 27.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 2. 135,163 113.343 24,617 137,970 53,982 39.1 3,346 3,346 18,474 75,522 63,265 128,909 39.3 26. 5 9. 129,956 108,296 24,949 133,245 52,259 39.2 3,268 18,392 76,603 *9,427 128,639 40.7 27.4 16. 131,126 109,674 24,221 133, 895 51,814 38.7 3,071 3,071 18,381 72,403 57,980 127,121 39.1 26.0 23. 129,282 107,957 31,177 139,134 51,285 36.9 2,800 2,800 18, 525 78, 772 63, 742 125, 835 41.6 25.1 30. 128,712 107,586 30,607 138,193 50,344 36.4 2,740 2,740 18,386 80, 799 64,387 126, 517 42.3 26.3 AuM: 1 1 3 3 2 0 , , 3 1 2 5 9 2 1 11 0 1 9 , , 1 7 0 5 6 9 3 2 1 0, , 9 9 4 0 1 4 1 13 4 2 1 , ,0 7 1 0 0 0 4 4 9 8 , , 4 7 0 6 0 8 3 3 5 6 . . 0 8 2 2 , , 6 1 1 6 9 0 2 2 , , 6 1 1 0 9 0 1 18 8 , , 4 4 2 1 7 0 7 7 8 7 , , 7 1 4 0 9 9 6 62 1 , , 7 0 1 7 1 8 1 12 2 8 8 , , 2 2 1 6 4 2 4 4 0 1 . . 5 5 2 2 4 9 . . 7 5 135,753 114,728 27,628 142,356 49,530 34.8 2,570 2,570 18,455 81, 211 68,655 128, 584 41.2 27.2 20. 133, 207 112,230 32,434 144,664 50,503 34.9 2,315 2,315 18,662, 80,379 65,090 128, 316 41.6 24.8 29. 134, 992 114.344 33,640 147,984 50,870 34.4 1,970 1,970 18,678! 76,901 60,058 131,114 40.2 22.6 Sept. 3. 134, 880 114, 561 26,172 140, 733 48,406 34.4 1,630 1,630 18,689 78, 201 60, 299 132,163 40.6 27.0 10. 141,245 121,047 27,978 149, 025 47,075 31.6 1,720 1,720 18,478 78,649 64, 484 134, 578 39.5 25.5 17. 136,652 116, 483 36,996 153,479 47,734 31.1 1,595 1,595 18, 574 77,329 59, 236 133, 283 40.2 21.0 24, 139,342 119,012 35,051 154,063 48,171 31.3 1,880 1,880 18, 450 76,614 58, 801 135, 888 39.4 21.3 Oct. 1 135,082 115,606 39,384 154,990 48,575 31.3 960 960 18,516 82,180 59,733 136, 084 42.0 21.9 8. 140, 077 120,143 35,348 155, 491 48,603 31.3 1,428 1,428 18, 506 76, 527 57, 628 137, 565 39.2 21.1 N De o c v . . 1 2 1 2 2 2 1 1 1 3 5 7 0 3 9 5 2 6 2 9 . . , , , . 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 4 4 3 4 3 3 4 2 4 6 0 8 9 1 0 7 0 8 , , , , , , , , , , , 4 9 2 3 2 1 5 9 8 5 8 7 4 3 2 3 9 9 8 1 1 7 2 4 9 3 4 2 9 3 4 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 1 2 2 1 2 1 7 1 4 5 0 8 8 0 0 0 7 , , , , , , , , , , , 2 9 4 3 1 2 2 4 7 6 5 5 1 9 1 6 7 1 8 0 3 5 3 8 5 1 9 5 1 3 6 1 4 3 4 3 1 1 7 7 2 6 4 0 , , , , , , 7 7 9 3 4 4 9 3 3 0 3 1 3 9 3 5 7 0 1 1 1 1 1 1 1 1 1 1 1 1 2 2 1 1 3 4 5 5 3 5 7 9 0 2 0 2 4 5 9 7 7 , , , , , , , , , , , 9 2 9 1 0 2 4 4 9 9 9 5 1 5 1 5 1 2 9 6 5 6 3 8 9 6 0 1 2 0 5 4 5 4 5 4 4 4 5 4 4 5 4 5 8 0 4 9 9 9 0 9 0 9 0 , , , , , , , , , , , 7 9 3 4 2 4 4 4 4 7 8 0 9 0 9 2 0 6 2 0 6 2 7 6 8 4 4 4 2 2 5 8 5 4 4 3 3 3 3 4 3 3 3 3 1 9 2 1 9 7 1 2 5 2 6 . . . . . . . . . . . 3 1 5 6 2 5 5 0 0 3 8 1 1 1 1 1 1 1 1 1 , , , , , , , , , 9 9 1 7 9 4 3 9 6 6 4 7 9 4 6 0 8 3 6 3 1 8 3 3 6 9 8 9 3 5 9 2 8 1 1 1 1 1 1 1 1 1 , , , , , , , , , 6 6 3 4 9 4 9 9 7 9 1 3 1 8 6 3 8 7 9 6 4 0 9 2 9 5 3 8 3 3 9 6 8 1 1 1 1 1 1 1 1 1 1 1 8 8 7 7 8 8 8 8 8 7 8 , , , , , , , , , , , 2 3 6 2 4 0 4 4 4 7 8 3 6 6 9 0 9 3 0 4 0 0 5 9 1 5 4 3 9 9 9 0 8 8 8 8 8 8 8 8 8 8 8 8 2 5 2 0 1 5 6 2 0 8 3 , , , , , , , , , , , 9 1 9 9 1 7 2 5 3 5 2 1 0 5 0 3 9 2 4 6 1 6 1 6 3 4 5 7 8 4 2 5 7 6 6 6 6 6 6 6 6 6 5 6 4 0 2 1 4 5 4 4 1 9 3 , , , , , , , , , , , 8 0 1 9 3 1 3 2 5 4 6 1 0 8 2 5 1 1 1 0 4 5 3 3 6 4 9 2 2 0 5 4 5 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3 3 3 3 3 6 4 9 8 7 6 7 7 6 6 6 , , , , , , , , , , ,6 3 2 7 1 6 7 0 8 3 8 1 7 7 2 6 2 8 7 9 4 0 0 9 4 1 7 9 1 0 8 8 4 4 4 4 4 4 4 4 4 4 4 4 2 0 1 0 2 0 0 3 2 1 4 . . . . . . . . . . . 7 4 0 7 3 0 6 8 8 3 5 2 3 2 2 3 3 3 4 4 4 4 1 6 2 1 0 5 3 2 4 0 4 . . . . . . . . . . . 0 4 6 8 0 0 6 9 8 8 5 a 1 Minus sign indicates net amount discounted for or purchased from other Federal Reserve Banks. a Adjusted percentages are calculated after increasing or reducing reserves held by the amount of accommodation extended to or received from other Federal Reserve Banks. S O CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

510 ANNUAL EEPOBT FEDERAL RESERVE BOARD. FEPERALRESEWEBAtiKOFSTlOUIS 1^ NET DEPOSIT UABILITK F.R. NOTE CIRCULATION, CASItRESER/ESJIiP RESERVE RATIOS. 1920. 70 70 60 'AA 60 ^ SO 60 A 40 \ 40 30 \ / 30 r / 20 20 V 10 0 RESERVEPERCEflTA6ES. ACTUAL "A", ARIUSTED"B«. SEEflOTEBElOlY. 2S 0 DEPOSIT AND ER.NOTE LIABILITIES, -L; AMP TOTAL RESERVES, -C\ Jldjuisted jiercertbages are calcalcUeci after increasing or reducing reserve* held - by the cutwvLtit of °CLcconwdation extended Co or received from,other 3&lercil$e$J Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.— Volume of paper discounted and bought. [In thousands of dollars.] Discounted paper. Purchased paper. Total discounted and purchased paper. Month. Total. o b m b y S l e e i G g n c a o u t t v r w i e o e a d r n n r s - . B a a a c n n c c k e e p e s r t . - s' a a T c n r c c a e e d p s e t . - All other. Total. B a a a c n n c c k e e p e s r t . - s' ex D ch o a ll n a g r e. a a T c n r c c a e e d p s e t . - 1920 1919 1918 1917 January 195,390 147,547 321 1,653 45,869 4,820 4,820 200,210 149,401 39,722 1,889 February 156,778 102,501 80 1,030 63,167 5,749 5,749 172,527 126,924 34,016 5,222 March 239,395 152,082 808 1,245 115,260 6,118 6,118 275,513 195,052 45,217 2,439 April.... 282, 605 144,182 553 1,288 116,582 4,159 4,159 266,764 202,481 64,774 5,605 May 205, 480 116,070 481 1,122 87, 807 2,597 2,597 208,077 210,712 61,347 10, 474 June 178,176 110,506 726 744 66,200 3,215 3,215 181,391 179,728 95,385 5,536 July 192, 561 106, 085 827 938 84,711 2,041 2,041 194,602 154,273 106,057 16,667 O August . 205, 721 112,988 735 656 91,342 9S5 985 206,706 159, 890 92,880 18,839 September 207, 294 117,103 855 822 88,514 1,345 1,345 208,639 215,578 118,404 25,349 October. 208,163 123,248 930 1,707 82,278 2,102 2,102 210, 265 223,896 157,277 26,046 November 178,178 109, 740 346 914 67,178 573 573 178,751 185,436 156,973 40,091 December.. . . .. 168,300 99,179 461 1,352 67,308 2,316 2,066 250 170,616 184,762 139,181 52,693 Total: 1920 2,438,041 1,441,231 7,123 13,471 976,216 36,020 35,770 250 2,474,061 1919 2,100,631 1,895,246 7,946 197,439 87,502 87,502 2,188 133 1918 1,085,137 777,982 15,68.1 291,474 26,096 26,096 1,111,233 1917. 181,118 108, 593 3,115 69,410 i 29,732 29, 732 1210,850 g i Includes 16,944,395 of acceptances purchased from the Federal Reserve Banks of Boston and New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

512 ANNUAL REPORT FEDERAL RESERVE BOARD. SCHEDULE 4.—Earnings and expenses. 1920 1919 1918 1917 EARNINGS. Bills discounted $6,382,357 $2,918,462 $2,218,069 $358,239 Bills purchased 273,425 564,495 226,164 170,233 United States securities 391, 612 320,412 89,096 110, 301 Municipal warrants 13,691 Transfers—net earnings 10, 570 48, 209 57, 920 Deficient reserve penalties (including interest). 104,163 52, 373 52,107 14,968 Sundry profits 28, 560 18,166 43,183 11, 422 Total earnings 7,180,117 3,884,478 2,676,828 736,774 CURRENT EXPENSES. Expenses of operation: Assessment account expenses Federal Reserve Board 26,618 24,981 18,397 12,733 Federal advisory council (fees and traveling expenses) : 1,200 1,150 582 405 Governors' conferences (including traveling expenses). ...» 277 553 269 711 Federal reserve agents' conferences (including traveling expenses) 282 229 283 Salaries- Bank officers 126,916 95,040 72,573 Clerical staff 747,312 400,860 206,763 55,236 Special officers and watchmen 22,984 13, 408 7,218 2,127 All others 30,693 20, 289 5,212 2,043 Directors'fees 6,084 5,970 8,245 5,450 Per diem allowance. 2,170 2,290 1,750 1,640 Traveling expenses.. 3,594 3,326 2,317 1,843 Off"i cers'" a nd' c'laerrkkss'' 'traveling expenses.. 25, 525 22,933 1,219 Legal fees , 1,505 61 Rent 48, 746 36,020 25,739 13,077 Taxes andf ire insurance 3,221 701 Telephone 6,629 3,548 2,323 711 Telegraph , 44,799 15,609 4,775 769 80,220 54,853 34,813 9,477 Expressage 1,318 4,586 25,192 2,906 Insurance and premium on. fidelity bonds 27,108 18,961 6,116 2,101 Light, heat and power 7,139 1,945 Printing and stationery 76,743 34,676 25 386 4,926 Repairs and alterations 38,159 5,314 5jO92 386 Cost of currency shipments to and from member and nonmember banks 27,143 47,789 All other 62,930 18,673 15,692 11,490 Total expense of operation 1,419,315 833,765 472,046 177,938 Cost of Federal reserve currency (including expressage, insurance, etc.) 238,051 188,617 147,347 49,363 Miscellaneous charges account note issues 32, 988 20,313 4,597 1,229 Taxes on Federal reserve bank note circulation 58,000 58,300 Furniture and equipment 176,102 73,798 102,031 6,088 Bank premises Total current expenses. 1,924, 456 1,174, 793 726,021 234,618 Current net earnings 5,255,661 2, 709,685 1,950,807 502,156 PROFIT AND LOSS ACCOUNT. Earnings 7,180,117 3,884,478 2,676,828 736,774 1,924,456 1,174,793 726,021 234,618 Current expenses Current net earnings 5,255,661 2,709,685 1,950,807 502,156 Additions to current net earnings on account of— Amounts previously deducted from current net earnings for assessment account expenses of Federal Reserve Board 19,520 All other 230,338 12,748 Total. 5,275,181 2,709,685 2,181,145 514,904 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8 ST. LOUIS. 513 SCHEDULE 4.—Earnings and expenses—Continued. 1920 1919 1918 1917 PROFIT AND LOSS ACCOUNT—continued. Deductions from current net earnings on account of: Sank premises $365,000 $335,000 Reserve for depreciation United States bonds 34,615 $172,997 Assessment account of expenses Federal Reserve Board 19,520 Allother 11 Total deductions 399,615 354,531 172,997 Net earnings available for dividends, surplus, and franchise tax, Dec. 31 4,875,566 2,355,154 2,008,148 $514,904 Dividends paid 253, 711 234,660 404, 838 284,566 Transferred to surplus fund 4,621,855 2,120,494 11,603,310 Profit and loss Jan. 1,1918 230,338 1 1 Includes $801,655 reserve for Government franchise tax transferred to surplus fund in 1919. SCHEDULE 5.—Currency receipts from and shipments to member and nonmember banks. Receipts. Shipments. Total receipts. Total shipments. Month. m b F e a r m n o k m b s e . r m b F n e a r m o n o n k b m - s e . r m b e a T m n o k b s e . r m b n e a T m o n n o k b - s e . r 1920 1919 1920 1919 January $32,243,375 $2,286,400 $21,940,696 $396,370 $34,529,775 $28,205,817 $22,33r7,0,66 $5,975,505 February... 24,254,301 1,893,650 26,615,630 371,9—8 7 26,147,951 1'6", 2~3~3~,817 26; 987,617 9,434,975 March 32,994,263 2,638,906 24,171,839 470,825 35,633,169 18,621,616 24,642,664 11,102,060 April 33,427,084 2,765,432 26,069,484 451,785 36,192,516 24,215,531 27,121,269 8,489,470 May 31,568,580 2,335,348 26,626,457 732,393 33,903,928 22,762,239 27,358,850 12,065,088 June 35,707,432 2,633,311 28,030,584 535,449 38,340,743 24,163,503 28,566,033 11,307,794 July 34,228,785 2,715,848 30,713,766 1,570,377 36,944,633 26,441,329 32,284,143 13,774,305 August 32,839,210 2,421,440 19,684,740 3,067,847 35,260,650 21,066,539 22,752,587 18,527,654 September. 35,681,773 2,455,185 32,954,948 4,476,968 38,136,958 23,372,992 37,431,916 23,827,274 October 37,423,640 2,659,139 34,556,573 6,085,919 40,082,779 26,258,479 40,642,492 32,870,931 November., 38,992,159 3,073,580 27,738,517 3,847,708 42,065,739 24,654,489 31,586,225 29,511,084 December.. 42,780,282 3,407,665 34,753,056 3,870,480 46,187,947 32,741,115 38,623,536 28,531,008 Total: 1920,i 412,140,884 31,285,904 334,456,290 25,878,108 443,426,788 360,334,398 1919, .. 285,505,994 15,919,609 213,400,752 3,286,851 288,737,466 205,447,148 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

514 ANNUAL REPORT FEDERAL RESERVE BOARD. SCHEDULE 6.—Operations of check clearing and collection department. [Amounts in thousands of dollars.] Items drawn on banks in own district. Items drawn on Items forwarded ta Treasurer of other Federal Re- Located in Federal Located outside Fed- United States. serve Banks and Month. Reserve Bank and eral Reserve Bank their branches. branch cities. and branch cities. Number. Amount. Number. Amount. Number. Amount. Number. Amount. January 402,622 464,183 1,689,907 185,915 85,854 18,263 30,327 14, 55S February 376, 518 390,304 1,662,835 163, 588 108,167 14,939 35,287 14,304 March 503,129 491,050 2,092,670 225,510 126, 512 22,809 56,648 26,086 April 425,361 433,793 2,038,622 200,395 175, 088 24,248 44,002 17,368 May 388,469 407,337 1,909, 346 173, 922 147, 604 17,380 40,075 15,392 June 419, 438 409,040 1,986,521 172,196 135, 659 16,330 45,587 16,278 July 403,621 381,525 1,968,354 164, 876 100, 745 19,985 46,015 13, 775 August 388,445 386,043 2,009,656 164,965 127,385 18,911 42,104 14, 775 September 448,753 433,293 2, 054,910 170,589 138, 364 15, 485 47,182 15,206 October 431, 248 430,683 2,151, 586 177, 215 182,156 15,236 44, 849 13,04a November 435, 261 395,521 2,096,313 164,127 166, 490 18,183 42, 489 10, 789 December .„. 461,166 386,390 2,162,008 157,085 150,105 21,835 45,208 11,174 Total: 1920... 5,084,031 5,009,162 23,822,728 2,120,383 1,644,129 223,604 519, 773 182,748 1919... 3,715,300 4,181,543 12,886,664 1,393,981 2,224,362 286, 874 281, 309 146,137 1918... 1,474,810 3,000,207 5,437,158 883,839 1,527, 704 330,117 146, 794 335,727 1917... 521,042 1,715,728 2, 764,404 608,101 586,500 145,478 61, 710 630,033 Total.* Month. 1920 1919 1918 1917 Number. Amount. Number. Amount. Number. Amount. Number. Amount. January 2,208,710 682,919 1,166,919 461,016 411,876 342,085 244,250 204, 714 February 2,182,807 583,135 1,099,851 382,467 459, 445 283, 787 278, 910 176,957 March 2,778,959 765,455 1,491,100 467,419 474, 206 339, 572 261, 993 184, 930 April 2, 683,073 675,804 1,522, 263 430,390 462,379 326, 273 295, 204 199, 017 May 2,485,494 614,031 1,473,140 466,663 524, 053 345, 918 327, 054 234, 844 June 2, 587,205 613, 844 1,442,685 470, 514 568, 700 365, 729 298, 350 214, 707 July 2, 518,735 580,161 1, 497,918 448,075 744,885 374, 763 283, 248 257, 383 August 2, 567,590 584,694 1,567,883 475, 781 886,968 384,697 327, 861 248, 331 September 2,689,209 634,573 1,685,829 545,114 852, 334 403,177 363, 220 251,049 October 2, 809, 839 636,177 1, 983, 768 620, 749 1,036, 922 473, 941 333, 125 261,887 November 2, 740,553 588,620 1,902,127 560,376 1,023,203 440,122 440, 289 467,500 December 2, 818,487 576,484 2,274,152 679,971 1,141,495 469, 826 480,152 398, 021 Total: 1920..31,070,661 7,535,897 1919 19,107,635 6,008,535 1918 8,586,466 4,549, 890 1917 3,933,656 3,099,340 j 1 Exclusive of duplications on account of items handled by both parent bank and branch. 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. Unusual problems confronted the Federal Keserve Bank of Minneapolis throughout the entire year. The very unsatisfactory transportation conditions during the last quarter of 1919 continued throughout the early part of 1920 and did not begin to improve until late in the year. Agricultural and live-stock production predominates in the Ninth Federal Reserve District. Bad transportation conditions delayed the seasonal movement of the crops late in the previous jear and continued without much change until the latter part of 1920. Heavy credit extensions by the Reserve Bank for crop-moving purposes were not reduced in the normal manner, but remained high throughout the first part of the year, and then increased as a result of harvesting and crop moving in the fall. The strain upon all banks was increased by the absence from the farm-mortgage market of insurance companies, trust companies, the Federal Farm Land Bank, and dealers and brokers in this class of investments, through which the capital requirements for agriculture and live stock have been largely taken care of in previous years. Further strain on credit was created by the sudden downward drift of prices for all agricultural products, live stock, and commodities, which was coincident with the beginning of the crop-marketing period. The resulting dissatisfaction tended seriously to delay marketing, increase country bank loans, and prevent the usual increase of bank deposits and liquidation of maturing notes resulting from an orderly marketing of the crops. Pressure on credit reached its high point in late November, but relaxed somewhat toward the end of tne year. Traffic conditions improved by October to a point that enabled grain-carrying lines to meet their car orders with the equipment available to the crops. Cases of elevator congestion were comparatively few and there were no terminal blockades. Abnormal shipments of cattle during November created an acute shortage of cattle cars, but it was of a temporary nature. BUSINESS CONDITIONS IN 1920. Crop results for the year were satisfactory. Spring planting conditions generally were good, both as to soil and moisture. There was some damage to wheat in June, which was covered by reseeding to flax; but later localized areas of black rust developed, which made it impossible to realize as large a crop as had been expected. This district enjoyed the largest corn crop in its history. The total production for each of the grain crops, as well as of potatoes and hay, were 515 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

516 ANNUAL REPORT FEDERAL RESERVE BOARD. larger than last year, except in the case of rye. The combined corn and oat crop exceeded 500,000,000 bushels. The total value of these crops, taken at midsummer prices and adding the dairy and fruit products, totaled in value more than $1,250,000,000. Shipments of grain to terminals were not as large during the fall months as in the preceding year. The movement of wheat alone was about 7 per cent less than in the preceding year. This is explained by a reluctance to sell upon a lower market basis. The peak of prices both at wholesale and retail was reached about May 1, when the buying wave ended, that had prevailed since the armistice. Special and secret price reductions developed rapidly in June, particularly at retail; and the prices for grains, live stocK, wool, and other products declined considerably by the end of the year. In the endeavor to secure the old prices for grain, particularly wheat, many farmers withheld their stocks from market or exchanged their wheat only for storage tickets, thereby delaying the payment of their own obligations and impairing the ability of their local bankers to finance other producers that were less fortunate in crop returns. This resulted in 30 bank failures in North Dakota, and a few in near-by States. Cattle conditions were particularly unfavorable during the winter in Montana, and heavy losses were realized before spring opened. The very favorable moisture conditions of this year, however, were some recompense, as pasture was excellent and stocks of hay increased. The receipts of cattle at the South St. Paul market were much:less than in the preceding year until a large movement of cattle began in November, which had a depressing influence on prices. Business conditions which had appeared so favorable, although somewhat excited and feverish in January, were much depressed by the end of the year. There was recorded in the closing months a substantial reduction in the activities of the mines, lumber companies, building trades, flour mills, and other manufacturing concerns. A similar decline took place in the demand for labor. Business failures amounted to record-breaking totals in November and December. Peculiarly, the year's record for iron ore shipments down the lakes was a good one; the volume of which, as compared with the preceding year, exhibited an increase of more than 20 per cent. FINANCIAL CONDITIONS IN 1920. There was a sharp turning point in the financial history of the Northwest during the latter part of March. The expansion and enthusiasm prevailing since the armistice terminated. Confidence in financial stability was not shaken but optimism as to continuity of turnover and profits came to an end. Member banks experienced a withdrawal of deposits between March 19 and December 31 of more than 29 per cent when measured by the experience of 35 selected member banks located in the larger cities. Meanwhile there was a slight increase in time deposits, gradual selling of holdings of Government securities, and a moderate amount of collections on customers' loans; but the greater part of the burden was transferred to the Federal Reserve Beaik through liberal rediscounting of customers' paper. There were seasonal increases in the accommodation given to customers by these member banks in the spring Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 0—MINNEAPOLIS. 517 and fall months and a very moderate reduction in tne summer months and after November 12, so that their rediscounts at the end of the year were practically equal to the volume existing at the end of January. These seasonal demands for accommodation by customers during the spring and fall months were transferred through rediscounting to the Federal Reserve Bank. Owing to these increased demands, there was a tendency to skimp or economize on reserves maintained with the Federal Reserve Bank. Penalties for deficient reserves were assessed on 698 different banks during the year. The Federal Reserve Bank experienced an orderly reduction of its loans to member banks from the beginning of the year until the week beginning March 20. Thereafter the volume expanded very rapidly until the end of May. After a small reduction during the summer months there was a rapid increase in the accommodation granted for crop-moving purposes between August 13 and October 22. Thereafter the crop movement, although considerably delayed, brought some reduction, so that on December 31 the total accommodation to the district (including funds of other Federal Reserve Banks borrowed) was down to the amount at the end of the spring planting season, but about $11,000,000 larger than on the same date a year previous. The general decline which took place throughout the district in the volume of business and in prices beginning in April was reflected in our note issues, as they are freely elastic. The total of outstanding circulating notes at the end of the year was about $7,000,000 less than at the beginning of the year, or a decline of 8 per cent. LOANS AND DISCOUNTS. About 70 per cent of the member banks of the district were accommodated with rediscounts during the year. Of the 1,009 member banks on December 31, 704 had exercised the rediscount privilege during the year. The total amount of paper discounted was $953,- 391,763.10, of which slightly less than one-half was secured by Government war obligations. The total amount of discounts handled was about 45 per cent larger than during the preceding year. When the purchased paper is added to the discounted paper the total for the year 1920 is over $971,000,000. The greatest turnover of discounted paper took place in the months of June and December, although April, May, October, and November exhibited substantial amounts. The number of rediscounts handled during the year totaled 73,275, of which more than 10,000 were received in the month of December alone, and more than 8,000 in each of the months of June, October, and November. Discount rates for paper secured by certificates of indebtedness were increased slightly on January 2, 1920, and rates for all other kinds of paper were advanced substantially on January 26. On April 20 rates were advanced slightly for notes secured by certificates of indebtedness, and on May 1 they were advanced slightly for notes secured by Liberty loan bonds. On June 1 rates were advanced substantially on all eligible paper, including trade acceptances, except notes secured by Liberty loan bonds. Subsequent to June 1 there was no change made in rates. At that time the rates on eligible paper other than agricultural and live stock of over 90 days and that secured Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

518 ANNUAL REPORT FEDERAL RESERVE BOARD. by Liberty bonds. Victory notes, and certificates of indebtedness were fully 2 per cent higher than at the beginning of the year. On June 1 the rates of discount were 5J per cent for notes secured by certificates of indebtedness, 6 per cent for notes secured by Liberty bonds and Victory notes, 6^ per cent for trade acceptances, and 7 per cent, for agricultural and commercial paper, both secured and unsecured. These changes in rediscount rates reflect the changes which took place in local market interest rates during the year. FEDERAL RESERVE NOTES. The events of the year have demonstrated the elastic quality of the Federal Reserve note. The net amount that had been issued to the bank by the Federal Reserve Agent at the beginning of the year was $88,442,605 and at the close of the year $81,385,820, or a reduction of $7,056,785. During the year the Federal Reserve Agent issued to the bank, in the aggregate, $39,450,000, and the bank returned fit-foruse notes to the agent totaling $5,740,000. The notes unfit for circulation were redeemed and destroyed at Washington, and totaled during the year $40,766,785. The amount of notes issued by the agent to the bank, when considered by months, exhibits the seasonal fluctuations in the demands for currency. Of the total issue indicated of about $40,000,000, more than $8,000,000 was issued in the month of September, more than $4,000,000 in the months of October and December, and more than $3,250,000 in each of the months of March and August. These months include spring planting, harvesting, and the Christmas buying period. The return of fit-for-use notes to the agent was confined practically to the month of January, midsummer, and late December. The supply of new and fit-for-use notes held by the agent and available for issue to the bank totaled $9,890,000 on December 31, 1920, as compared with $7,560,000 a year previous. It was considered advisable by the Federal Reserve Agent to keep a larger supply on hand, as our practice of keeping an extra $10,000,000 in the sub treasury at Chicago was discontinued on November 4, 1920. Owing to the requirement of the Federal Reserve Act that all Federal Reserve Banks shall return the notes of other Federal Reserve Banks directly for redemption, there is a large turnover of Federal Reserve notes that is not included in the totals given for notes issued to the bank by the agent nor in the total of notes redeemed and destroyed at Washington. The amount of our own notes received from other Federal Reserve Banks during the year totaled $42,784,900, of which slightly more than one-half were returned by the Chicago Federal Reserve Bank and about $5,000,000 each by the banks of New York and San Francisco. The amounts so received were largest in January, with $5,000,000; and least in February, with $2,700,000. Our shipments of their notes to other Federal Reserve Banks have not equaled our receipts of our own notes from them. The total amount which we returned during the year was $29,273,850, of which more than one-half were returned to Chicago and about $3,000,000 each to San Francisco and New York. Our returns to them were largest in the months of January and June and least in February. From the foregoing it appears that there exists a tendency for our notes to flow to the larger centers of population as a means of payment to a greater extent than the notes Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 9—MINNEAPOLIS. 519 from the urban districts appear in our district. Although conclusions from these figures are hazardous, owing to the lack of information concerning other forms of money that are circulating and moving, it would appear that residents of our district are personally spending more in urban centers than urban citizens are spending in our district, the net difference being over $5,000,000 in the case of Chicago, over $3,000,000 in the case of New York, and over $1,500,000 in the San Francisco district, which includes Los Angeles. This excess of receipts over shipments was $13,511,050 in 1920, and but $9,- 903,135 in 1919. FEDERAL RESERVE BANK NOTES. In order to assist the Government in securing silver for shipment to the Orient during the war by retiring silver certificates, and to provide notes of small denomination for the needs of trade (owing to the retirement of the silver certificates), Federal Reserve Bank notes were issued beginning September 20, 1918, secured by deposits of Government securities and a 5 per cent redemption fund. Altogether a total of $18,096,000 were issued, of which $10,266,800 were returned to Washington for destruction. The net outstanding on December 31, 1920, allowance being made for a small quantity on hand, was $7,655,170. CURRENCY MOVEMENT. Currency receipts in 1920 totaled $64,860,000, as compared with $57,347,000 in the preceding year, or an increase of 13.2 per cent. The total shipments in 1920 were $78,996,000, as compared with $52,826,000 the preceding year, or an increase of 49.3 per cent. The more active condition of business in the early part of the year was reflected in a reduction in monthly receipts as compared with January to July, inclusive, of the preceding year. The reduced volume of currency needed after the decline in prices which began in the spring was reflected in enlarged receipts in the later months, particularly in November and December, which totaled, respectively, $7,535,000 and $11,820,000. Shipments were larger in each month of 1920 than in the same months of 1919, the month of September having shipments exceeding $11,300,000 and December exceeding $9,300,000. Crop-moving demands in the fall always bring a need for more currency, the shipments in September being about $5,000,000 more than in August. GOLD POSITION OF THE BANK. The gold holdings of the bank on December 31, 1919, when combined with those of the Federal Reserve Agent, totaled $52,745,348. At that time the bank was not rediscounting with other Federal Reserve Banks. At the close of business December 31, 1920, the combined holdings of the bank and Federal Reserve Agent were but $46,678,148, or a reduction for the year of $6,067,200. Of this total then held, about $25,000,000 was in the gold-settlement fund and gold-redemption fund at Washington, and practically all of the remainder in our own vaults. Of our vault holdings, about onefourth was in the form of gold coin and bullion and three-fourths in Digitized for FRASE45R5 25° http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

520 ANNUAL REPORT FEDERAL RESERVE BOARD. the form of gold certificates which have been found more convenient with the limited vault space available. The gold-settlement fund at Washington has facilitated exchanges to an extent not fully appreciated either by bankers or by the public generally. The volume handled through it has been greater in each succeeding year. Amounts paid to other Federal Reserve Banks through the daily settlements, exclusive of transfers, largely on account of Treasury operations and rediscount transactions, were $1,914,954,315.84 in 1920, as compared with $1,320,379,539 in 1919. About one-half of the volume was occasioned by transactions with the Chicago district and about one-fourth with the New York district. BALANCE SHEET AND EARNINGS. The statement of resources and liabilities on December 31, 1920, exhibits some interesting changes since December 31, 1919. The capital paid in, which is 3 per cent of the capital and surplus of member banks, increased from $3,074,000 to $3,461,000, while the surplus increased from $2,320,000 to $5,178,000. Our liability to member banks on their reserve balances decreased from $53,828,000 to $43,520,000, and our liability on Federal Reserve notes and Federal Reserve Bank notes in actual circulation decreased from $95,387,000 to $87,153,000. The total reserves of gold and legal tender decreased from $52,811,000 to $46,928,000. The net amount invested in uncollected transit items and nonreserve cash decreased from $10,144,000 to $4,113,000. The ratio of total reserves to net deposit and Federal Reserve note liabilities combined, declined from 39.5 to 38.7 per cent. The total of bills discounted and bought and held among our own assets decreased from $86,456,000 to $82,967,000. However, these figures for loans and discounts do not include the notes which were sold by us to other Federal Reserve Banks (known as rediscounts), which totaled on December 31, 1920, $14,340,020, as compared with none on December 31, 1919. The total gross earnings for the year 1920 were $5,307,380.60, of which $4,734,258.72 was collected as discount on bills, the remainder being earned by holdings of United States securities, discount on purchased bills, and from other sources. The expenses of operation totaled $1,015,198, of which more than $115,000 was due to taxes and costs of bank-note circulation. The current net earnings were, therefore, $4,292,182.60, and equal to 131.4 per cent of the average paid-in capital during the year. After setting aside amounts for depreciation of buildings and equipment and the payment of a 6 per cent dividend to stock-holding member banks amounting to $195,870.65 and the transfer of $3,410,948 to surplus, the remainder, in accordance with the Federal Reserve Act, became the property of the United States Government. CHECKS, COLLECTIONS, CLEARINGS, AND TRANSFERS. During the year there was a phenomenal increase in the volume of checks handled and a substantial increase in the collection items handled. This may be accounted for largely by the fact that North Dakota, Montana, and northern Michigan were placed on the par Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 9—MINNEAPOLIS. 521 list January 2, South Dakota in February, and Minnesota on April 1 of this year. At the close of 1920 there were 291 banks using our transit department daily, of which six were nonmembers. During the year 21,588,684 items were handled, amounting to $3,908,856,000. This represents an increase of 101.1 per cent in the number of items and 41 per cent in the amount as compared with the totals of 1919. Of the total handled in 1920, there were 20,141,701 items, amounting to $3,352,953,000, which were drawn on banks in our own district, or approximately 94 per cent and 86 per cent, respectively, of the total handled. The collection department received 154,923 items in 1920, as compared with 100,652 m 1919. The number of city collections was practically the same as in 1919, but a considerable increase took place in the collections drawn on country banks, particularly after September 1, when difficulties were experienced by northwestern banks having a large number of certificates of deposit maturing which had been purchased by eastern and western banks for temporary investments. The number of country collections were 7% per cent of the total in 1919 and 39.5 per cent of the total in 1920. When measured in dollar values the total for 1920 was $129,393,577.49, of which the country items were 43.6 per cent and city items 56.4 per cent. The collections realized (i. e., not returned unpaid) were 148,749 in number and $125,044,297.13 in amount, or 96.1 per cent and 97 per cent, respectively, of the total received. Twin City (Minneapolis and St. Paul) clearings through this Federal Reserve Bank totaled $3,244,120,869.24 in 1920, of which the largest sums were handled in the months of March and October, with more than $300,000,000 each, and the least in February, with over $100,000,000. The total in 1919 was $2,899,427,833.80, showing an increase for 1920 of 12.1 per cent. All months in 1920, except February and December, showed larger totals than in 1919. The decrease in February, 1920, was due to the general tie-up of transportation facilities and stoppage of shipments, while the December decline is readily recognized as resulting from the diminished volume of trade that set in during the fall months, owing to business conditions that prevailed nationally, particularly to price declines and the holding of products and merchandise in the hope of securing the old prices for the same. The private wire system of the Federal Reserve Board enables us to give immediate and economical service to our member banks in transferring funds to different parts of the country. There were 7,543 wire transfers bought in 1920, totaling $813,859,341, as compared with $623,197,000 in 1919. The mail transfers bought in 1920 totaled over $172,375,000, as compared with over $168,202,000 in 1919. There were 8,587 wire transfers sold in 1920, totaling $559,- 430,000. There is a growing appreciation of this service. The wire transfers were sold at par. Purchases of such transfers were made at par when wires were sent and received on the same day; otherwise a discount was necessary as with mail transfers, both equal to 20 cents per $1,000 per day. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

522 ANNUAL REPORT FEDERAL RESERVE BOARD. LIBERTY BONDS. All of the bonds for the second, third, and fourth Liberty loans were originally issued in a temporary form, with but four coupons. This necessitated a large amount of work during the past year in making exchanges for permanent bonds having coupons extending to maturity. In addition, the conversion of low interest rate bonds into higher interest rate bonds has continued, the 4 per cent being convertible into 4|- per cent bonds. The total quantity surrendered for conversion into either permanent bonds bearing the same rate or into permanent bonds bearing a higher rate totaled more than $150,000,000 during the year 1920. Altogether 1,096,003 bonds were surrendered for these conversions and 896,835 bonds were delivered. Next in importance to the handling of conversions Was the denominational exchange of bonds; 442,525 pieces were received and their equivalent value taken in 45,288 pieces, or a reduction in number from about 10 to 1. Of the bonds received for denominational exchange totaling $42,251,050, 73.3 per cent were of the $50 and $100 denominations. Of the bonds issued, 80.2 per cent were in the $1,000 denomination, and 14.9 per cent in the $5,000 and $10,000 denominations. The total number of bonds handled is the best index of the burden carried by the bond section of the fiscal agency department. The total number received during the year was 1,565,587, and the total delivered, 952,053, giving a grand total for both receipts and deliveries of 2,517,640 pieces. The temporary financing of the United States Treasury has been accomplished by the use of numerous issues of short-term certificates of indebtedness. The volume was not as large in 1920 as in 1919. The subscriptions handled by this fiscal agency department in 1920 totaled $72,082,000 for 18 different issues, with a total of 4,196 subscriptions, whereas there were 23 issues in 1919 totaling $310,133,- 500, with subscriptions that numbered 16,292. The number of different banks subscribing for certificates during the year 1920 in the Ninth Federal Reserve District totaled 1,153, which is a very favorable showing when compared with our total membership on December 31, 1920, of 1,009 banks. The great bulk of the subscriptions were for sums of $25,000 and less. These small allotments constituted about 90 per cent of the total number handled, although only about 33 per cent of the total amount. This exhibits a very satisfactory distribution and evidences a widespread interest that has been created in these issues as a temporary short-time tax-exempt investment for banks, and for individuals and corporations with large tax payments to be made. The total amount of certificates of indebtedness redeemed during the year was $248,882,500, or more than $176,800,000 in excess of the purchases by member banks. In view of the pressure for accommodation from the agricultural sections, these investments in certificates of indebtedness were found to be particularly satisfactory during the year. DEPOSITS OF TREASURY FUNDS WITH THE BANK. The termination of war bond-issue financing and the reduction in the number of certificates of indebtedness sold in this district during Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 9—MINNEAPOLIS. 523 the year reduced the volume of the deposits and withdrawals made by the Treasury of the United States. The aggregate deposits during the year were over $439,000,000, as compared with over $1,053,000,000 in 1919. The withdrawals were approximately the same in both cases. The average of end-of-montn balances was reduced from about $2,000,000 in 1919 to about $600,000 in 1920. In fact, overdrafts existed at the close of February and March, 1920. The month of largest turnover in 1920 was March, in which month more than one-fourth of the total transactions for the year took place. SUBTREASURY FUNCTIONS. An act of Congress approved May 29, 1920, provided for the discontinuance of the several subtreasuries of the United States and of the offices of the several Assistant Treasurers located at the subtreasuries, to take effect on July 1, 1921, or such earlier date or dates as the Secretary of the Treasury should decide, and the Secretary was authorized to utilize the Federal Reserve Banks for the purpose of performing any or all of the duties of such subtreasuries and Assistant Treasurers. On August 30, 1920, an announcement was made by the Secretary of the Treasury regarding the making of exchanges and replacements of United States paper currency by Federal Reserve Banks upon the discontinuance of the subtreasuries. A similar announcement was issued on October 19, 1920, with reference to the receipt of United States gold and silver coin and subsidiary silver and minor coinage and the exchange and replacement thereof. Owing to the limited vault capacity here, the stock of silver received from the Treasury was placed for safe-keeping in vaults especially rented in the Twin Cities, and plans made for constructing a silver vault in the bank to handle the daily turnover of receipts and shipments. The handling of this coin and currency will be assumed as a banking function so far as possible, which means that the supply of coin or currency on hand will be treated as bank reserves. Any excess or deficiency in the amount on hand will be rectified by shipments to and shipments from the Treasury at Washington. MEMBERSHIP. At the close of the year there were 1,009 member banks of the Federal Reserve Bank of Minneapolis as compared with 915 at the beginning of the year, or a gain of more than 10 per cent. As the Federal Reserve Act requires a payment for our capital stock equal to 3 per cent of the combined capital and surplus of member banks, our capital increased $386,900; snowing that these gains in membership represented banks having a combined capital and surplus of nearly $13,000,000. The net gains consisted of 62 national banks and 39 State banks and trust companies. The larger part of these banks had not been organized during the year but were organizations which had been considering the advisability of membership for some time, and had concluded that the advantages could no longer be overlooked. The total membership at the close of 1920 was divided into 888 national banks and 121 State banks. At the close of the year there were 14 State bank membership applications progressing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

524 ANNUAL REPORT FEDERAL RESERVE BOARD. in the various steps of preparation, approval, and acceptance. Thirty State banks became members by conversion into national institutions during the year. Since the date of organization of the Federal Reserve Bank of Minneapolis, 128 State banks have acquired membership by conversion, and 121 have taken and retained membership as State banks, making a total of 249 State institutions which have entered the system. An increasing percentage of the State banks that are eligible for membership have joined the system. On June 30, 1919, there were 765 eligible banks (including 75 members), and on June 30, 1920, 770 eligible banks (including 107 members). The percentage of members to eligible banks between these two dates increased from 9.8 per cent to 12.2 per cent. The gain when measured by the total capital and surplus of the member banks as compared with the eligible banks increased from 17 per cent to more than 19.5 per cent, and when measured by total resources the percentage of member banks to eligible banks decreased from 19.6 per cent to 19.1 per cent. Between June 30 and December 31, 1920, 14 eligible State banks became members, while it is certain that an equal number of State banks did not become eligible during the same period. It would follow, therefore, that the gains were really much larger on December 31, 1920, than shown by these percentages for June 30, 1920. BANK EXAMINATION DEPARTMENT. During the year this department made 68 examinations, covering 53 State member banks, 14 national banks, and one State bank examined for prospective membership. PERSONNEL. The complete staff of the Federal Reserve Bank of Minneapolis on December 31, 1920, numbered 459 persons, as compared with 287 a year previous, or an increase of 58 per cent. The number in the transit department nearly doubled, while the increase in the banking department was 42 per cent, and in the fiscal agency department, 36 per cent. HELENA BRANCH. Early in the year property was bought in Helena to house the branch. It was necessary to remodel the building for banking purposes and proper vaults were constructed. Although vault doors and chests to be used in the vault were ordered early in the year, the delays in transportation and interruptions to manufacture which prevailed during the year made it impossible to open the branch as early as had been expected. However, a skeleton staff was arranged for from the selected employees of the main bank and provision made for training persons to take their places at the time of departure. All the plans and records for the branch were completed by the end of the year. The Helena branch will have as its territory the whole State of Montana, and member banks of that State will transact their business with the branch instead of with the head office. The vault is one of the best in the West and in strength and safety is practically the same as the main cash vault in the head office. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 9—MINNEAPOLIS. 525 SCHEDULE 1.—Resources and liabilities at close of business December 31. [In thousands of dollars.] 1919 1918 1917 RESOURCES. Gold and gold certificates 9,130 8,275 8,323 14,960 Gold settlement fund—Federal Reserve Board. 4,872 23,774 19,487 Gold with foreign agencies 3,546 233 2,100 Total gold held by bank , 17,675 16,693 32,330 36,547 Gold with Federal Reserve agents.. 25,905 35,847 55,868 32,910 Gold redemption fund 3,098 206 4,949 878 Total gold reserves 46,678 52,746 3,147 70,335 Legal tender notes, silver, etc.. 250 65 73 413 Total reserves. 46,928 52,811 93,220 70,748 Bills discounted (includes bills rediscounted for other Federal Reserve Banks): Secured by Government war obligations 17,093 22,331 31,528 5,780 All other 64,561 51,526 5,144 8,251 Bills bought in open market (includes bankers' acceptances bought from other Federal Reserve Banks) 1,313 12,599 17,994 7,167 Total bills on hand 82,967 86,456 54,666 21,198 United States Government bonds 116 116 121 1,888 United States Victory notes. United States certificates of indebtedness 8,480 5,146 1,340 All other earning assets 25 Total earning assets 91,563 95,052 59,933 24,451 Bank premises 668 600 Uncollected items and other deductions from gross deposits 21,605 24,406 13,125 * if," 080 5 per cent redemption fund against Federal Reserve Bank notes.. 480 400 236 All other resources 249 316 213 198 Total resources. 161,493 173,585 166,727 112,477 LIABILITIES. Capital paid in 3,461 3,074 2,931 2,620 Surplus 5,178 2,320 38 Government deposits 1,031 513 5,191 8,717 Due to members—reserve account 43,520 53,828 48,826 39,348 Deferred availability items 17,492 14,262 6,984 11,808 Other deposits, including foreign Government credits... 532 2.262 383 73 Total gross deposits 62,575 70,865 61,384 59,946 Federal Reserve notes in actual circulation 79,498 87,187 96,571 49,414 Federal Reserve Bank notes in circulation, net liability. 7,655 8,200 4,168 All other liabilities 3,126 1,939 1,635 497 Total liabilities.. 161,493 173,585 166,727 112,477 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—Movement of principal asset and liability items during 1920. C71 fcO [Amounts in thousands of dollars.] Discounted bills. Purchased bills. R eserve percentages. Discounted for member banks in this district. Date. e a a T s r s o n e t i a t n s l g . T he o l t d a . l c F R o o w e u e t d h i n d e t e t i h r s e r a - d l A. B. C. cha o P s p u e e r d n - in T h o e t l a d l . se U S cu n ta r i t i t e t e i s d es. re T c s o e a t r s v a h e l s. dep N o e s t its. n c R F i o t e e r i t c d s o e e u e s n r l r . v a i a n - e l Actual. ju A st d e - d.2 Reserve Secured market. Banks.1 by Gov- Per cent Total. w er a n r m o e b n li t - (B+A). O gations. w Jan. 2. 93,037 71,380 71,380 21,228 29.7 12,061 12,061 9,596 53,871 45,482 87,106 40.6 40.6 9. 86,444 67,619 67,619 20,363 30.1 10,229 10,229 8,596 60,746 47,173 85,566 45.8 45.8 16. 86, 467 65,387 65, 387 20,519 31.4 8,409 8,409 12,671 64,363 52,750 83,474 47.2 47.2 23. 81, 322 64,742 64,742 22,451 34.7 7,984 7,984 8,596 64,013 48,360 82,468 48.9 48.9 30 79,403 65,116 65,116 23,883 36.7 5,691 5,691 8,596 65,654 49,036 81, 635 50.2 50.2 Feb. 6. 83, 266 69,737 69,737 24,813 35.6 4,933 4,933 66,730 53,966 81,645 49.2 49.2 13 84, 747 71,614 - 5,000 66,614 24,144 36.2 4,537 4,537 8,596 60,576 48,356 82,386 46.3 50.2 20. 81, 780 70,172 - 4,274 65,898 24,199 36.7 3,012 3,012 8,596 64,446 49,965 82,141 48.8 52.0 Mar. 2 5 7. 8 81 1 , ,4 5 6 7 2 8 ".8,756 - - 4 8 , , 0 7 0 3 0 4 6 5 4 9 , , 4 7 3 5 5 6 2 2 2 4 , , 1 2 4 5 2 2 3 3 7 7 . . 4 3 4 4 , , 1 8 1 1 0 3 4 4 , ,8 1 1 1 3 0 8 8, , 5 5 9 9 6 6 67,808 4 5 8 3 , ,2 2 4 3 6 3 8 8 1 2 , , 7 1 8 4 7 1 4 5 8 0 . . 4 1 5 5 6 1 . . 5 4 (72 12. 81,710 67,230 -11,415 55, 815 22, 880 41.0 5,884 5,884 8,596 64,013 50,028 82,119 48.4 57.1 19. 78, 504 55, 024 - 4,900 50,124 21,627 43.1 5,884 5,884 17,596 67,885 51,004 82,161 51.0 54.6 26. 79, 593 65, 382 -10,029 55, 353 21, 851 39.5 5,615 5,615 8,596 62,344 47,087 81,906 48.3 56.1 Apr. 2. 81, 535 65, 536 - 7,529 58,007 22,173 38.2 5,345 5,345 10,654 62,894 49,251 82,043 47.9 53.6 9. 85, 897 70,037 - 4,948 65,089 22, 546 34.6 5,261 5,261 10,599 60,484 50,976 82, 352 45.4 49.1 16. 82, 811 68,180 5,000 73,180 26, 743 36.5 6,032 6,032 8,599 54,702 42,611 81,918 43.9 39.9 23. 88,625 73, 503 10,108 83,611 28,158 33.7 6,505 6,505 8,617 51,775 45,710 81,606 40.7 32.7 30. 90,207 75, 359 11,111 86,470 26,869 31.1 6,237 6,237 8,611 50,223 46,445 80, 954 39.4 30.7 May 7. 88,932 75,068 9,995 85,063 26, 482 31.1 5,251 5,251 8,613 53, 890 48,130 81,008 41.7 33.9 14. 89, 295 76, 043 10,257 86,300 26,702 30.9 4,649 4,649 8,603 50,720 45,543 80,529 40.2 32.1 21. 88,704 75,627 19,175 94,802 28,406 30.0 4,474 4,474 8,603 52,924 47, 763 79,799 41.5 26.5 28. 88,781 75, 837 19,132 94,969 28, 258 29.8 4,341 4,341 8,603 51, 575 46,737 79,183 41.0 25.8 Tune 4. 89,218 76,349 13,670 90,019 27,079 30.1 4,266 4,266 8,603 51,650 47,211 79,165 40.9 30.1 11. 88,070 75,593 13,170 88,763 26,626 30.0 3,874 3,874 8,603 50, 825 45,430 78, 873 40.9 30.3 18. 77, 579 64,947 22,616 87,563 23,964 27.4 4,030 4,030 8,602 49, 815 34,078 78,486 44.3 24.2 25. 84,932 72,125 23,672 95,797 24,268 25.3 4,205 4,205 8,602 48,921 41,189 77,728 41.1 21.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 2 88,401 77,403 16,932 94,335 20,952 22.2 2,384 2,384 8,614 48,790 43,572 77,905 40.2 26.2 9 89,669 78,449 15,653 94,102 19,184 20.4 2,612 2,612 8,608 47,500 41,988 79,116 39.2 26.3 16 87,785 75,124 13,292 88,416 16,380 18.5 4,056 4,056 8,605 51,378 44,628 78,337 41.8 31.0 23 90,963 78,102 12,499 90,601 18, 826 20.8 4,261 4,261 8,600 48,143 45,527 77,268 39.2 29.0 30 90,280 78,524 13,738 92, 262 18,743 20.3 3,159 3,159 8,597 49,896 47,180 76, 374 40.4 29.3 Aug. 6 92,109 80,607 12,226 92,833 18,880 20.3 2,905 2,905 8,597 49,637 48,989 76,052 39.7 29.9 13 86, 860 77,033 10,073 87,106 18,463 21.2 1,230 1,230 8,597 47,934 42,231 75,799 40.6 32.1 20 88,088 78, 557 17,197 95, 754 19,328 20.2 934 934 8,597 48,175 43,402 75, 849 40.4 26.0 27 87,741 78,209 20,347 98,556 20,574 20.9 935 935 8,597 47,240 42,255 75,901 40.0 22.8 Sept. 3 93,130 83,495 20,123 103,618 20,198 19.5 1,038 ]L,038 8,597 49,773 47,915 77,918 39.6 23.6 10 94, 753 85,118 18,777 103,895 19,233 18.5 1,038 L,038 8,597 49,873 47,836 79,522 39.2 24.4 2 1 4 7 9 9 4 4 , , 2 3 3 8 6 2 8 84 4 , , 2 5 5 4 1 2 2 1 1 5 , , 3 4 4 3 9 2 1 9 0 9 5 , , 9 6 7 0 4 0 1 1 8 8 , , 1 7 1 2 6 8 1 1 7 8 . . 7 1 1 1 , , 3 2 8 3 8 8 •1 1, , 3 2 8 3 8 8 8 8, , 5 6 9 0 7 2 4 4 8 9 , , 2 2 6 6 6 4 4 44 4 , , 3 9 3 5 7 5 8 8 0 1 , , 4 6 3 6 9 8 3 3 8 9 . . 5 1 2 2 6 2 . . 2 2 Oct. 1 94, 829 84,734 18,631 103, 365 18,474 17.9 1,498 :1,498 8,597 49,687 44,870 81,964 39.2 24.5 8 97, 225 87,220 19,749 106,969 18,700 17.5 1,408 L,408 8,597 49,140 45,467 82,958 38.3 22.9 15 93,923 83,933 23, 272 107,205 19,063 17.8 1,358 :L, 358 8,632 50,251 43,521 82, 824 39.8 21.4 22 93,398 83, 590 27,204 110,794 20,347 18.4 1,210 1,210 8,598 48,306 40,720 83,190 39.0 17.0 29 94,665 84,670 26,603 111, 273 20,751 18.6 1,398 1,398 8,597 49,438 43,531 82,714 39.2 18.1 Nov. 5 93,283 83,277 25,023 108,300 21,753 20.1 1,409 1,409 8,597 50,296 42,419 83,190 40.0 20.1 12 94, 040 83, 894 26, 250 110,144 21,539 19.6 1,549 1,549 8,597 49,264 42,806 82,729 39.2 18.3 19 95, 034 85,142 25,830 110,972 21,315 19.2 1,290 1,290 8,602 49,320 43,867 82,609 39.0 18.6 26 90,664 80, 562 25, 860 106,422 21,607 20.3 1,490 1,490 8,612 47,500 38,080 82,137 39.5 18.0 Dec. 3 89,984 79,904 24, 041 103,945 22,177 21.3 1,483 1,483 8,597 52,715 42,741 82,036 42.2 23.0 10 90, 828 80,696 15,166 95,862 22,003 22.9 1,535 1,535 8,597 51,564 43,211 81,404 41.4 29.2 17 93,126 83,227 11,684 94,911 24,842 26.2 1,303 1,303 8,596 49,924 43,434 81,501 40.4 30.6 23 87,962 78,163 19,299 97,462 24,734 25.4 1,203 1,203 8,596 49,672 37,916 81,493 41.6 25.4 30 91,678 81,669 14,801 96,470 24,222 25.1 1,413 L, 413 8,596 48,704 42,204 80,067 39.8 27.7 1 Minus sign (—) indicates paper discounted for other Federal Reserve Banks. 8 Adjusted percentages are calculated after increasing or reducing reserves held by the amount of accommodation extended to or received from other Federal Reserve Banks. to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

528 ANNUAL REPORT FEDERAL RESERVE BOARD. 1 FEDERAL RESERVE BAHK OFMIIWEAFOUS. MOVEMENT OFEARtWiG ASSETS DURin6l9Z0. zs 25 UUNNIITTEEDD SSTTAATTEESS SSEECCUURRIITTIIEESS 25 0 PURCHASED BILLS HELD 100 !OO SO 60 60 60 40 20 2O 0 PERCWTA6E OF WAR PAPER TO TOTAL DISCOUNTS FOR BANKS III DISTRICT. J2S i 1 1 • 1 1 1 1 1 1 1 1 1125, 2S 0 DISCOUNTED BILLS. (SEE NOTE BELOW) 125 25 TOTAL EARN!HO ASSETS JAN. FEB. MA^UNEJULtiAUO. SEP A OCT1NOV1 DEC A Rafter secured by OorernmenbW&r Obligations discountedforSan/Cs in District. B :Jotal9afterdiscoanted for\SanJCsin District. C.-Jotal 3isa)unted3h{ierhd&. SjtacebetweeritinesBtuidCrepresents -whereabovelineB-ijctfterdiscoanteJL for^ and -whcrebelcwlineJj-Siyier rediscountedwith, other3zderal$eserre&xnlGs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 9—MINNEAPOLIS. 529 FEDERALRESERVEBANKOFMIMEAPOLIS 8 NET DEPOSIT LIABILITY F.R.NOTE CIRCULATION, t CASH RESERVES.AHD RESERVE RATIOS, 1920. 70 70 60 60 50 SO A 40 40 30 30 r'B \. • v 20 20 V 10 10 0 O RESERVE PERCENTAGES. ACTUAL 'A-.AUIOSTEP-B'. SEEtiOTEBELOW. SO i 1 1 1 1 1 1 1 1 1 1 1 1 SO F.R. NOTE C/RCUUT/Ori 160 D£PO$ITA11DfiRJlQTEUABlUTLES;Lr,AnP TOTAL RESERVES, JAH._ FEB. MAR. APR. AUr JUHE. JULY AU6. SEPT. OCT. NOV. PEC. \tfdjusted jiercenJtages are calculated, after increasing or reducing reserve* held, - by the cvtwuntafacconwdatiori, extended to dfrhJfaJft& Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.— Volume of paper discounted and bought. Or CO O [In thousands of dollars.] Discounted paper. Purchased paper. Total discounted and purchased paper. Month. by S e G cu o r v e e d rn- Trade Bankers' Dollar Trade Total. o m bl e ig n a t t w io a n r s. a a c n c c e e p s t . - Allother. Total. a a c n c c e e p s t . - exchange. a a c n c c e e p s t . - 1920 1919 1918 1917 January. ... 61,183 45,075 165 15,943 450 450 61,633 27,774 5,463 2,649 February 62,836 42,443 73 20,320 3,395 3,395 66,231 17,054 7,328 4,252 March 68,461 39,075 174 29,212 2,489 2,489 70,950 33,444 2,446 2,991 s April 89,352 47,242 179 41,931 2,451 2,451 91,804 78,345 17,884 9,667 May . . . 87,603 45,823 401 41,379 2,307 2,307 89,910 85,749 29,775 4,743 June 94,758 46,704 375 47,679 1,425 1,425 96,183 54,466 41,828 10,498 July 72,291 34,464 336 37,491 2,774 2,674 100 75,066 39,330 59,680 8,819 August 81,183 33,814 289 47,080 525 475 50 81,709 45,835 87,230 14,149 September.. 73,705 32,258 166 41,281 553 553 74,257 79,550 76,958 4,442 October 83,031 35,218 539 47,274 483 483 83,513 111,940 62,280 8,194 November . 82,689 34,476 221 47,992 538 538 83,226 99,456 40,704 28,957 December 96,300 42,182 220 53,898 670 670 96,970 97,291 16,118 13,866 Total: 1920 953,392 478,774 3,138 471,480 18,060 17,910 150 971 452 1919 661,520 521,981 565 138,974 108, 714 108,714 770,234 1918 433, 792 242,827 799 190,166 13,902 13,885 17 447,694 1917 80,155 36,753 364 43,038 133,072 33,072 U13,227 i Includes $16,674,786 of acceptances purchased from the Federal Reserve Banks of Boston and New York. w o > Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 9 MINNEAPOLIS. 531 SCHEDULE 4.—Earnings and expenses. 1920 1918 1917 EARNINGS. Discounted bills $4,734,259 $1,829,461 $1,547,842 $311,376 Purchased bills 191, 862 882,564 211,602 148,531 United States securities 181,990 213,501 116,370 97, 936 Municipal warrants 6 4,479 Transfers, net earnings 77,245 51,461 89,608 45,983 Deficient reserve penalties (including interest). 92,744 26,382 29,101 4,468 Profits realized on United States securities Sundry profits 29,281 3,672 55, 425 15, 565 Total earnings 5,307,381 3,007,041 2,049,954 628,338 CURRENT EXPENSES. Expenses of operation: Assessments, account expenses Federal Reserve Board 22,520 20,209 14,117 10,196 Federal advisory council (fees and traveling expenses) 893 1,274 1,034 150 Governors' conferences (including traveling expenses) 452 83 204 625 Federal Reserve agents' conferences (including traveling expenses) 27 341 370 113 Salaries- Bank officers 77,637 61,014 49,125 37,101 Clericalstaff 363, 724 208,171 123,402 31, 926 Special officers and watchmen 10,766 8,726 1,667 All other 23,686 3,530 120 816 Directors' fees 3,850 3,870 3,610 3,740 Per diem allowance 710 980 850 940 Traveling expenses 2,145 1,965 1,562 1,506 Officers' and clerks' traveling expenses 15,227 5,531 1,982 361 Legalf ees 3,100 3,380 1,732 1,500 Rent 21,760 14,295 11,298 5,660 Taxes and fireinsurance 1,186 851 167 74 Telephone 2,832 2,223 2,213 1,031 Telegraph 13, 780 2,752 3,193 699 Postage 69,406 34,781 36, 501 6,552 Expressage 11,938 969 13,039 5,030 Insurance and premiums on fidelity bonds 22,253 8,692 7,776 2,070 Light, heat,"and power Printing and stationery 62,488 25,228 18,361 7,475 Repairs and alterations 22,523 6,352 2,016 1,267 Cost of currency shipments to and from member and nonmember banks 11,392 7,906 Allother 34,708 11,255 16,238 I 4,602 Total expense of operation. 799,003 434,378 308,910 125,101 Cost of Federal Reserve currency (including expressage, insurance, etc) 62,627 56,273 114,287 42,381 Miscellaneous charges, account note issues 15, 959 17,002 10,734 1,355 Taxes on Federal Reserve bank note circulation 36, 792 24,912 Furniture and equipment 100, 817 23, 926 30, 477 •41,364 Total current expenses 1,015,198 556, 491 464,408 210,201 Current net earnings 4,292,183 2,450,550 1,585,546 418,137 PROFIT AND LOSS ACCOUNT. Earnings 5,307,381 3,007,041 2,049,954 628,338 1,015,198 556, 491 464,408 210,201 Current expenses.. Current net earnings. 4,292,183 2, 450,550 1,585,546 418,137 Additions to current net earnings on account of— Amounts previously deducted from current net earnings for assessment account expenses Federal Reserve Board 16,607 All other 42, 415 Total. 4,308,790 2,450,550 1,585,546 460,552 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

532 ANNUAL REPORT FEDERAL RESERVE BOARD. SCHEDULE 4.—Earnings and expenses—Continued. 1920 1919 1918 1917 PROFIT AND LOSS ACCODNT—continued. Deductions from current net earnings account of— Bank premises $77,737 $100,000 Vaults $29,500 Assessment account expenses Federal Reserve Board 16,607 Reserved for depreciation United States bonds $21,657 Special reserve . 100,000 Allother. . . 10,199 Total deductions 177, 737 116,607 39,699 21,657 Net earnings available for dividends, surplus, and franchise tax 4,131,053 2,333,943 1,545,847 438,895 Dividends paid. 195, 871 180,186 168,103 363, 895 Transferred to surplus fund 3,410,948 2,153,757 11,377,744 37,500 Franchise tax paid United States Government 524,234 37,500 1 Includes $688,872 reserve for Government franchise tax transferred to surplus fund in 1919. SCHEDULE 5.—Currency receipts from and shipments to member and nonmember banks. [In thousands of dollars.] Receipts. Shipments. Total receipts. Total shipments. Month. m b F e a r m n o k m b s e . r m b F n e a r m o n o n k m b - s e . r me T m o ber m T b o e a m n n k b o s e n . r - 1920 1919 1920 1919 January 6,371 60 3,262 6,431 6,992 3,316 1,834 February 3,071 58 5,330 3,129 3,145 5,385 2,885 March 3,790 53 5,819 3,843 3,043 5,871 3,607 April 3,916 50 5,094 3,966 4,878 5,126 3,269 May 4,067 8 5,310 4,075 6,899 5,314 2,342 June 4,571 40 6,178 4,611 4,903 6,184 3,357 July 5,127 50 5,718 5,177 6,589 5,724 2,890 August 4,494 34 6,601 5 4,528. 4,307 6,606 3,773 September 4,846 54 11,310 45 4,900 3,362 11,355 8,227 October 4,834 11 7,429 4 4,845 4 855 7,433 7,010 November 7,431 104 7,280 101 7,535 4,258 7,381 5,949 December 11 814 9,285 16 11,820 4,116 9,301 7,683 Total: 1920 64,332 528 78,616 380 64,860 78,996 ' 1919 56,863 484 52,451 375 57,347 52,826 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 9 MINNEAPOLIS 533 SCHEDULE 6.—Operations of check clearing and collection department. [Amounts in thousands of dollars.] Items drawn on banks in own district. Items drawn on Items forwarded to Month. L R o e c s a e te rv d e i B n a n F k e c d i e t r y a . l Lo e c c r i a t a y t l e . R d e o s u e t r s v id e e B F a e n d k - T Un r i e te a d s u S r ta e t r e s. of s t o h e t e h rv i e r e r b F B r e a a d n n e c k r h a s e l a s R n . e d - Number. Amount. Number. Amount. Number. Amount. Number. Amount. January 226,249 141,543 881,402 75,081 17,703 4,598 42,916 February 204,135 115,814 917,111 71,883 13,406 7,367 54,767 34,736 March.. I 247,012 189,084 1,236,584 137,199 25,425 8,641 71,616 53,750 April 211,870 153,580 1,323,975 121,055 40,454 9,147 82,508 40,755 May 206,208 147,765 1,359,368 115,894 29,429 3,985 76,061 39,759 June 216, 886 170,458 1,550,033 134,794 35,344 4,817 88,695 40,369 July 231, 686 159,240 1,541,782 125,886 27,121 4,681 94,400 38,698 August 236,580 149, Q07 1,505,257 117,297 14,789 4,863 100,940 38,030 September 261,401 179,548 1,627,082 137,307 33,173 3,509 104,217 42,395 October 279,135 184,675 1,803,792 148, 647 47,416 3,942 117,766 47,544 November 284,736 170,622 1,740,937 135,195 39,987 3,270 106,605 38,471 December 295, 899 153,503 1,752,581 117,876 48,424 5,133 111, 845 34,527 Total, 1920. 2,901,797 1,914,839 17,239,904 1,438,114 372,671 63,953 1,074,312 491,950 Total. Month. 1920 1919 1918 1917 Number. Amount. Number. Amount. Number. Amount. Number. Amount. January 1,190,246 264,138 695,649 226,629 412,081 128,935 344,269 64,221 February 1,189,419 229,800 628,197 158,605 370,292 104,793 271,945 48,628 March 1,580,637 388,674 883,928 206,413 434,721 134,846 341,613 67,586 April 1,658,807 324,537 861,900 218,677 455,124 138,325 342,576 64,014 May 1,671,066 307,403 845,748 233,394 451, 809 157, 808 352,259 81,837 June 1,890,958 350,438 849,384 202,396 460,760 149, 846 364,358 97,570 July 1,894,989 328,505 861,875 204,547 500,173 166,975 327, 728 75,831 August 1,857,566 309,197 833,669 214,574 506,327 173,928 332, 805 79,990 September 2,025,873 362,759 938,005 263,025 513,389 207,568 347,944 97,474 October 2,248,109 384, 808 1,144,244 285,155 652,912 306,244 436,719 144,534 November 2,172,265 347,558 1,026,898 259,959 593,679 206,160 426,115 153,610 December 2,208, 749 311,039 1,178,160 296,634 696, 459 237,465 432,575 109,382 Total, 1920.21,588,684 3,908,856 10,747,657 | 2,770,008 6,047,726 2,112,893 |4,320,906 1,084,677 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. GENERAL BUSINESS CONDITIONS Nineteen hundred and twenty began with industry and trade moving at high speed and general conditions but little different from those which prevailed through the latter part of 1919. The situation early in the year offered encouragement for a larger output of the products of the Kansas City Federal Reserve district, which are almost exclusively essentials. It called for increased manufacture and more liberal distribution of merchandise to replace supplies exhausted during the war period. The outstanding feature of the year 1920 was a decline in prices of commodities. Starting during the midsummer, practically every product of this district was affected, and prices registered an average decrease of approximately 35 per cent from the high levels of February 1. The recession in prices, while necessary in the readjustment to obtain stability, brought about in the last 90 days of the year a depression of the business situation which was keenly felt throughout this district, and is somewhat reflected in all lines of trade and in every department of industry. It caused the slowing down of mercantile activities, curtailed manufacturing, reduced operation at the metal mines, restricted development operations in the oil fields, increased building stagnation and resulted in a slower movement of grain to the markets, many farmers preferring to hold their grain in anticipation of higher prices. GENERAL REVIEW OF THE SERVICES AND ACTIVITIES DURING 1920. During the year just closed the volume of business transacted in each of the departments has far exceeded all previous records. At the beginning of the year our loans, on the decline, stood at $129,072,194.86. Liquidation continued until February 3, when the loans reached the lowest period during the year, $90,783,586.83, after which they immediately began to increase, every month showing a higher level until, on November 6, the high point was reached, $164,277,697.84. From November 6 to the end of the year loans have shown some reduction, and on December 31 the total was $141,572,922.18. The net earnings of the bank from the year's operations amounted to $5,540,681.61, or at the rate of 130 per cent per annum on the average paid-in capital for the year, as compared with 99 per cent in 1919. Except for the months of February and March and the first part of April, this bank was a continuous borrower from other Federal 534 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10 KANSAS CITY. 535 Reserve Banks. Notwithstanding the increased rates effective following the progressive discount rate plan, made operative on April 19, 1920, our rediscounts continued to increase, and on November 3 reached the high point of $48,230,109.59. Throughout almost the entire year, the combined reserves of the bank were maintained only slightly in advance of the requirements. The number of penalties assessed for deficient reserves made necessary an increase in the penalty rates—effective January 2, 1921. On April 7, 1920, our transit departments handled a total of 244,314 items, aggregating $55,218,909.19, far exceeding the highest previous record. The daily average number of items was 169,870. The volume of currency and silver shipments has steadily increased until, on December 29, the receipts at the head office reached the maximum amount for any one day, being 197,000 bills, for a total of $1,430,000. The total head-office receipts for the year were 28,000,000 bills, aggregating $200,000,000, and shipments and deliveries totaled 41,000,000 bills, aggregating $222,000,000. Fiscal agency operations consisted principally of sales of Treasury certificates of indebtedness and war savings securities, and the exchange and transfer of Liberty bonds, the number of transactions handled during the year being 19,522,220 pieces, having a total value of $2,532,977,328.61. Although no active campaign was made for additional State bank and trust company members, there was a net increase in the membership of 15. An examination department was organized on March 1, and during the latter part of the year a library department was installed. More attention has been given to educational and recreational activities. With the added force at the Oklahoma City branch, the number of officers and employees of the bank and branches at the close of the year was 886, compared with 583 on December 31, 1919. Although unavoidable delays have been experienced as to material for the new building, the work is progressing very satisfactorily, and, barring unforeseen contingencies, the occupancy of the building is promised by November, 1921. FINANCIAL RESULTS OF OPERATION. The gross earnings from operations for the year were $7,409,987.31, expenses $1,857,959.81, leaving current net earnings of $5,552,027.50. Adding net credit to deferred charges of $233.30 and deducting depreciation of $11,579.19 on United States bonds carried, the net profits amounted to $5,540,681.61. Of the total gross earnings of the head office and branches, $6,441,476.47 represented the revenue derived from bills discounted, $211,974.98 came from discounts on bills bought in the open market, $505,539.24 from interest on United States securities, and $238,424.89 from penalties on deficient reserves. The acttial operating expenses at the head office and branches for the year were $1,514,115.57; the cost of issuing and redeeming Federal Reserve currency was $131,381.54; tax on bank notes $83,421.98; while the furniture, fixtures and equipment, including the Oklahoma City branch, cost $126,707.39. A comparative detailed statement of earnings and expenses for the years 1917, 1918, 1919, and 1920 is given in Schedule 4. Digitized for FRASER 45525°—21 35 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

536 ANNUAL REPORT FEDERAL RESERVE BOARD. DISCOUNT RATES. Changes in rates.—At the close of business last year our rate on member-bank collateral notes secured by Government securities was 4^per cent to 5 per cent; by eligible paper, 5 per cent. The rate on commercial paper from 15 to 90 days was 5 per cent; on six months' agricultural paper 5^ per cent, and on live-stock paper 5J per cent. The discount rates on some classifications of notes were slightly changed on January 3, January 23, February 26, July 3, and September 28. The most important change was that of January 23, when the member-bank notes were placed on a 5^ per cent basis, when secured by Liberty loan bonds or Victory notes, and 6 per cent when secured by eligible paper. The rates on all commercial, industrial, and live-stock maturities were increased from 5J per cent to 6 per cent, which rates were maintained throughout the year and are now effective. On September 28 loans secured by Government bonds were increased from 5J per cent to 6 per cent; the amount advanced against Victory notes decreased to 95 per cent, and the amount advanced against Liberty bonds to 85 per cent of their respective face values. On April 19 this bank adopted that provision of the amended act which permits the application of progressive rates of discount where members receive accommodations in excess of their basic lines. Progressive discount rate.—As early as June 13, 1918, our directors observed a tendency on the part of a comparatively few members to absorb the lending power of this bank, and a resolution was adopted, subject to the approval of the Federal Reserve Board, outlining a plan of progressive rate of discount quite similar to the one now in operation. Counsel for the Federal Reserve Board was of the opinion, however, that the application of different discount rates to the same class of paper as anticipated in the resolution would be contrary to the provisions of the Federal Reserve Act. The discount relations with member banks throughout the year 1919 demonstrated more than ever the necessity for the adoption of some regulation whereby the lending power of this bank would be more evenly distributed among the members, since a comparatively few continued to absorb a major portion of the bank's lending power, which, aside from the hazard of making unusually large advances to a few members, left the bank without available funds to extend credit to the vast majority of members which were either not borrowing at all or borrowing only moderately. The situation prevailing in the Tenth District was not dissimilar to that prevailing in some other districts, and for the purpose of bringing about some regulation of those habitually borrowing in excessive amounts, the Federal Reserve Board embodied in its annual report for 1919 a recommendation to Congress, as a consequence of which the Federal Reserve Act was amended on April 13, 1920, to grant the privilege to any district of adopting what is now-called the progressive discount rate. On April 16, our board adopted the provisions of the act as amended and the progressive discount rate became effective in the Tenth Federal Reserve District on April 19, 1920. Its adoption was in no sense a desire for greater revenue or to apply a new method to discount transactions with members. Experience had shown that in order to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10 KANSAS CITY. 537 discourage further expansion of loans it would be necessary to adopt some method of making it unprofitable for members to borrow in excess of their basic lines. The basic line of a member bank is determined by deducting from the amount of its average reserve balance for the preceding month the 35 per cent reserve on deposits which Federal Reserve Banks are required by the act to maintain; to the remainder is added the amount of capital stock of the Federal Reserve Bank paid in by the member, and this sum multiplied by two and one-half. How far the progressive discount rate plan has succeeded in bringing about a better distribution of credit among the members is apparent when the status existing on April 19 is compared with any subsequent date. On April 19, 1920, out of a total membership of 1,035, 351 members had borrowed not only the entire lending power of this bank, but an additional $10,000,000 represented by rediscounts with other Federal Reserve Banks. On December 31, 1920, 352 of the 684 members, which were not borrowing on April 19, had become borrowers more than half of those banks ; never before having had discount relations with the Federal Reserve Bank. Even under the higher discount rates as applied through the progressive rate plan, the demand for loans from members was so strong that this bank was forced to depend upon other Federal Reserve Banks for funds continually throughout the year. Under the Federal Reserve Bank of Kansas City plan, loans secured by Liberty bonds and Victory notes, owned by members, and Treasury certificates of indebtedness of any issue do not add to the credit structure upon which the progressive rate is computed. On offerings in excess of a member's basic line the rate progresses one-half of 1 per cent for each additional amount of 25 per cent of the basic line; therefore when a member is borrowing over 100 per cent and not more than 125 per cent of its basic line, the rate on such excess is 6| per cent, and on borrowings over 125 per cent and not exceeding 150 per cent of the basic line the rate on that additional excess is 7 per cent, and so on. Upon the adoption of the progressive discount rate plan it was necessary to provide some method of adjustment to reimburse member banks for the higher rates of interest paid on unmatured paper carried after the retiring of paper which had been discounted at a comparatively low rate. Accordingly, the adjustment department was organized and installed, which maintains a daily analysis by rates of the liability of e?tch member bank discounting at the progressive rate, in order that the rates actually paid may be adjusted under the progressive plan. DISCOUNT OPERATIONS. The number of discount transactions of the Federal Reserve Bank of Kansas City for the year 1920 was approximately 50 per cent greater than for 1919, which figures in turn were approximately double those of 1918. Compared with 16,024 transactions for an aggregate of $1,555,596,621.30 for the year 1919 the total number of discount offerings accepted from member banks in 1920 was 23,454, the aggregate amount being $1,667,943,229.49. Of this sum, 114 Colorado banks discounted $222,543,009.98; 171 Kansas banks, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

538 ANNUAL REPORT FEDERAL RESERVE BOARD. $125,642,178.23; 45 Missouri banks, $687,077,598.49; 192 Nebraska banks, $356,963,941.41; 12 New Mexico banks, $10,072,982.42; 257 Oklahoma banks, $240,009,504.65; and 35 Wyoming banks, $25,634,- 014.31, which makes a total of 826 member banks accommodated out of a total membership of 1,087, as compared with 679 banks accommodated during 1919. During the month of February $105,406,440.37 of paper was handled, the least of any month during the year. In October the loans handled amounted to $163,968,589.43, the largest amount of any one month. The total number of notes discounted was 119,791, or an average of approximately 425 per day. On one day in December there was discounted at the head office 814 notes, while on the same day three years ago there were handled only 5 notes, a striking contrast of the growth in volume of business handled in this department. In addition to the volume of discounts for member banks the work of this department was greatly increased, due to the many rediscount transactions with other Federal Reserve Banks. Rediscounts with other Federal Reserve Banks.-—Just prior to January 1, 1920 (Dec. 19, 1919), it was necessary to rediscount with other Federal Reserve Banks $7,000,000, which amount was increased from time to time during the latter part of December until on January 2 it reached $16,208,500, at which time we were carrying bankers' acceptances aggregating $8,086,175.58. On January 26, with the collection of bankers' acceptances, our rediscounts with other Federal Reserve Banks were entirely eliminated. During February and the first three weeks of March we were carrying rediscounts for other Federal Reserve Banks amounting to from $3,000,000 to $10,000,000. On April 16 it was necessary to again rediscount with other Federal Reserve Banks, at that time in amount $6,000,000. From that date the amount of rediscounts gradually increased until, on Novembers, they reached the maximum amount of $48,230,109.59. Since that date they have gradually decreased, and on December 31 our rediscounts amounted to $29,060,- 531.21. Rediscounts amounting to $411,637,400 with other Federal Reserve Banks were represented through 94 transactions as against 7 transactions for the year 1919, in total amount $56,500,000. Acceptances.—There was a slight increase in the use of trade acceptances, principally, however, acceptances of concerns located within the district drawn by manufacturers and wholesalers outside the district. The volume under discount has been very small as compared with the total loans. There were no open market purchases of trade acceptances during the year. The increase in the volume of bankers' acceptances originating within the district has been due almost entirely to the financing of wheat and flour for export. The amount of open-market purchases of bankers' acceptances consists entirely of acceptances arising out of export transactions. Investments.—The total United States securities purchased during the year was $128,078,650, consisting principally of 1-day certificates of indebtedness issued by the Treasury to cover overdrafts of the United States with this bank. Classification of paper discounted.—Total trade acceptances handled during the year amounted to $10,141,682.98; agricultural and livestock paper, $237,761,423.68; industrial and commercial paper, $322,569,467.94 (including, secured by United States securities, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10—KANSAS CITY. 539 $48,616,739.38); bankers' acceptances, $368,482.74, while member bank collateral notes aggregated $1,097,143,972.15, of which amount $1,065,409,582.06 was secured by United States securities. These figures do not give a correct impression of the proportion of the various classes of paper, as, for instance, the average amount of agricultural and live-stock paper, on account of its long maturity, ranges from 55 per cent to 60 per cent of our total average loans. The maximum maturity of member bank collateral notes is 15 days, and cjuite frequently such notes are made for a shorter time, or payment is anticipated before maturity. The proceeds of much of the paper classified as commercial and industrial are used for agricultural and live-stock purposes. Practically all of the loans made to country bankers and a large part of the loans made to city bankers are for the purpose of furnishing to farmers and stock raisers funds to produce their crops and to purchase and feed live stock. Rejections.—The total number of notes rejected was 20,362, amounting to $79,786,967.07, less than 4| per cent of the amount of all offerings. RESERVES AND PENALTIES. Reserve position.—Average daily reserves maintained by the Federal Reserve Bank of Kansas City against the combined Federal Reserve note and net deposit liabilities: Per cent. January, 1920 42.8 February, 1920 „ 45. 3 March, 1920 45. 2 April, 1920 41. 0 May, 1920 41. 8 June, 1920 41. 2 Daily average combined reserves maintained during the first six months of 1920, 42.9 per cent. Per cent. July, 1920 41. 0 August, 1920 41. 5 September, 1920 40. 8 October, 1920 40. 9 November, 1920 40. 8 December, 1920 40. 8 Daily average combined reserves maintained during the last six months of 1920, 41 per cent Daily average combined reserves maintained during the whole year of 1920, 41.9 per cent. Schedule 2 shows the fluctuation of reserves against net deposits and Federal Reserve notes during the year. In order to maintain the required reserve, it has been necessary for the Federal Reserve Bank of Kansas City to rediscount with other Federal Reserve Banks continuously since April 16. This is the natural consequence of increased operations and unprecedented demand for accommodations on the part of member banks. TRANSIT OPERATIONS. The volume of clearing operations has steadily increased, items on all banks in the district being collected at par during the entire year with the exception of the State of Nebraska, which was placed on a par basis on February 20. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

540 ANNUAL REPORT FEDERAL RESERVE BOARD. During the year the transit department at the head office handled a grand total of 30,761,789 country items, or a daily average of 97,601. Clearing-house items totaled 3,929,663, or a daily average of 12,929. The maximum volume of business handled during .any one day was on April 7, when we handled a grand total, including clearing-house and country items, of 205,335. The minimum day of the year was February 24, when the number of items handled was 69,072. The largest day as to actual value of items handled was March 1, $55,208,832.67; and the lowest day, November 27, $14,047,- 712.29. Including the branches, the average daily number of country items handled was 149,797, with an average total of $18,644,472. The average daily number of city items was 20,073, with an average total of $20,929,295. The number of employees in the transit department at the head office during the year varied from 140 to 185. The opening of the Oklahoma City branch resulted in a decrease in the handling of about 20,000 items per day at the head office, and the number of employees at the close of the year was reduced to 155. The work in our wire transfer division has increased more than 100 per cent, due to the fact that more member banks are appreciating the service offered of transferring, without cost to them, funds to their correspondents in Federal Reserve and branch cities. The volume of business transacted through the city and country collections division has materially increased, as member banks are availing themselves more freely of the privilege of forwarding for collection through the Federal Reserve Bank maturing notes and bills and other collection items. Member banks find from experience that we are able to give them satisfactory service on their collections, and in many cases at a saving on exchange charges and an actual saving of time. During 1920 this division at the head office handled a total of 55,301 items, of which 4,371 were returned and 876 now outstanding, making a total of 50,054 items collected, amounting to $93,787,697.89, which is nearly double "the amount handled during the year 1919. The direct-sending privilege, which is granted to member banks and by which they are able to send cash items direct to other Federal Reserve Banks and branches for credit with this bank, has been extended to an increased number of members during 1920, so that at the present time our direct-sending banks are forwarding to other Federal Reserve Banks and branches 200 letters daily as against an average of about 40 letters in 1919. This privilege will doubtless be extended to other members as they appreciate the advantage of this service, which will result in the reduction of the volume of items handled at the head office, as these items will not actually pass through our hands. The total transactions of the transit department of the head office and branches combined were enormous, representing the handling of 53,881,602 items, aggegating $13,011,582,140 a daily average of 169,870 items, amounting to $39,573,767. FISCAL AGENCY OPERATIONS. The fiscal agency department and the Government savings organization continued under the direct supervision of the governor's Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10 KANSAS CITY. 541 office, the Government savings organization conducting the selling campaign for war-savings securities and the fiscal agency department handling all bond and certificate of indebtedness operations and the accounting of war-savings securities stocks, sales, and deliveries. The first half of the year was the busiest six months this department has ever experienced, not even barring those periods during which the Liberty loans were floated. At the beginning of the year there were collections to make on account of subscriptions to the Victory Liberty loan. In connection with this loan deliveries were made of 4f coupon notes to subscribers aggregating 16,731 pieces, or a total of $1,253,000, and deliveries were made of 5,109 registered notes, aggregating $3,426,900. Redemptions were also made of 1919 war-sayings securities and deliveries of the new 1920 war-savings securities. The exchange of temporary for permanent bonds began in March, the handling of which, considering the amount involved, proved during the year to be the largest single operation of the department. The exchange and conversion divisions were also busily engaged during this period in the exchange of temporary coupon for registered bonds, bondholders taking advantage of the exchange to permanent bonds' at this time to have their bonds registered. This department throughout the past year has also handled the sale of 18 issues of certificates of indebtedness, subscriptions to such issues aggregating $120,180,000. Sales of certificates of indebtedness were made to 458 national banks, 738 State banks, 40 trust companies, and 9,833 individuals, while subscriptions were made directly through the department last year by only 60 individuals. Stupendous as it may seem, the grand total of pieces of valuable securities handled by the fiscal agency department during the year was 19,522,220, aggregating $2,532,977,328.61. SUBTREASURY FUNCTIONS. On December 18 the Secretarj^ of the Treasury authorized this bank, effective as of December 20, to assume all of the functions of a subtreasury, except the keeping in custody of reserve and trust funds consisting of gold coin and bullion and standard silver dollars securing gold and silver certificates, respectively, and held as reserve -against United States notes. NOTE ISSUES. Federal Reserve notes.—The amount of Federal Reserve notes outstanding at the end of 1920 shows an increase of $7,569,720 from the amount outstanding at the end of 1919. The low tide of the year was reached on June 1, at which time the amount outstanding had been reduced to $102,236,530. The highest amount outstanding was on December 23, when it stood at $119,756,275. Federal Reserve Banlc notes.—On January 2, 1920, the outstanding Federal Reserve Bank notes amounted to $19,928,000, which amount was gradually decreased until December 31, at which time the total outstanding was $14,854,600. MOVEMENT OF MEMBERSHIP. During the past year there was a net increase of 51 member banks in this district, 36 of which were national banks and 15 were State Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

542 ANNUAL REPORT FEDERAL RESERVE BOARD. banks and trust companies. This makes the total membership in this district 1,087, of which 669 are served by the parent bank, 260 by the Omaha branch, and 158 by the Denver branch. Of the total membership, 1,024 are national banks and 63 are State banks and trust companies. As a result of the net increase in the number of member banks, and due to additional applications for stock by banks whose capital and surplus had been increased, the capital stock of this bank was increased during the year from $4,015,550 to $4,454,950. FIDUCIARY POWERS. Under the Phelan amendment of the Federal Reserve Act approved September 26, 1918, considerable interest was manifested by national banks in this district regarding the exercise of fiduciary powers. Under this amendment, and prior to 1920, 54 national banks were granted permission to exercise the powers applied for, and during the past year the Federal Reserve Board approved applications from 36 national banks, which in most instances carried all of the powers authorized by the act. ELECTION OF DIRECTORS. To fill the vacancies caused by the expiration on December 31 T 1920, of the terms of C. E. Burnham and H. W. Gibson, as directors, of class A and class B, respectively, an election was held November 6 to December 1, inclusive, m which only banks of group 3 participated. Mr. C. E. Burnham, being an officer and director of a bank in group 2 f was ineligible for reelection as a representative of banks in group 3. The only candidates nominated were E. E. Mullaney, of Hill City, Kans., for class A director, and H. W. Gibson, of Muskogee, Okla.,, to succeed himself as class B director. Each received a total of 171 votes and were duly declared elected for a term of three years, ; beginning January 1, 1921. Asa E. Ramsay, class C director and chairman of the board of the Federal Reserve Bank of Kansas City since January 1, 1918, was reappointed a class C director by the Federal Reserve Board for a term of. three years ending December 31, 1923, and was redesignated chairman and Federal Reserve Agent for 1921. Fred W. Fleming was redesignated deputy chairman for the year 1921. INTERNAL ORGANIZATION. Personnel.—The total number of employees at the close of the year was 864, of whom 548 are at the head office in Kansas City, including the fiscal agency department; 137 at the Omaha branch; 82 at the Denver branch; and 97 at the Oklahoma City branch. Officers' meetings.—The practice of holding daily officers' conferences for the purpose of discussing points of interest, which was inaugurated in 1918, has been continued with satisfactory results, and on account of the increased volume of business and multiplied responsibilities it is felt that the harmonious operation of the many departments has been greatly facilitated through such conferences* Unusual conditions surrounding relations with banks in this district, both member and nonmember, have required constant watchfulness Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10 KANSAS CITY. 543 on the part of the management of this bank, and the fact that three national banks and several State banks have closed during the year without loss of a single dollar to the Federal Reserve Bank is at least partially due to close cooperation of the official staff. CURRENCY DEPARTMENT. The year 1920 has recorded a substantial increase in the volume of money handled by the currency department. There were received from all sources 28,000,000 bills, amounting to $200,000,000, an increase over the preceding year of 6,000,000 pieces, or $56,000,000. The number of bills shipped or delivered to member banks totaled 41,000,000, amounting to $222,000,000, an increase over 1919 of 12,000,000 pieces, or $49,000,000 OPERATION OF BRANCHES. The operation of all branches is under 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 the branches. During the year an additional branch was established at Oklahoma City, opening for business on August 2, 1920. The operations of this branch are limited to the clearing and collection of checks and the handling of shipments of currency to and from member banks in that portion of Oklahoma located within the Tenth District, being all but eight counties. The Omaha and Denver branches have direct relations with the member banks in their respective territories in all current and ordinary transactions, with the exception of membership and fiscal agency operations and various applications to be approved by the Federal Reserve Board and handled through the Federal Reserve Agent. The volume of business transacted at the branches at Omaha, Nebr., and Denver, Colo., has tremendously increased during the year, particularly at Omaha, as is shown by the following separate reports: Omaha branch.—The increased service rendered has been adequately reflected in the operation of the Omaha branch. In all departments an increase of activity has taken place during 1920. The Omaha zone comprises the entire States of Nebraska and Wyoming, where the shrinkage in values, particularly agricultural products and live stock, has been pronounced. This fact has caused heavy demands by member banks, especially during the latter part of the year; the volume of loans, however, at the Omaha branch at the close of 1920, shows a decrease of $6,000,000 compared with the figures at the close of 1919. The volume of paper secured by Government obligations has been gratifying in that the bank's holdings of this class of paper have decreased over $10,000,000, but against this reduction there nas been an increase of approximately $4,000,000 in loans of other classes. The highest point which loans reached during the year was $42,267,730.57 on November 6, which was also the greatest amount of loans held by the branch since its establishment. The least amount of loans held during the year was $28,243,019.87 on February 11. The urgent demands for loans in the Omaha zone kept the volume Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

544 ANNUAL REPORT FEDERAL RESERVE BOARD. throughout the year in excess of $30,000,000, except during the months of February and March. A total of 32,969 notes was discounted during the year, aggregating $382,597,955.72. There were rejected 5,768 notes, aggregating $25,609,576.81. Out of a total membership of 260 banks, 227 received accommodations. Of this number, 153 were at some time during the year affected by the progressive rate. Denver branch.—The year 1920 has been an active one at the Denver branch and has shown a large increase in the volume of business transacted. Many members which had not previously used the discount facilities of the branch received accommodations during the year just closed, 126 of the 158 members having had discount transactions, as compared with 86 out of the 145 in the year 1919. The branch discounted 15,331 notes, having a total value of $232,615,992.40, while 2,868 notes, having a value of $7,700,497.38, were rejected. Beginning the year with $11,436,380.03, the loans increased by January 22 to $14,789,987.93, due to the demand incidental to the cattle and sheep-feeding industry. As this stock began to move to market a gradual decline in the loan account was shown until April 12, when the loans reached the minimum of the year, $4,438,498.85. Shortly thereafter the demand of the farmers for crop raising again started the account upward, a fairly gradual increase being noticed until October 2, when the maximum for the year was reached, $18,793,081.68. The funds paid to the farmers for the sugar-beet crop and for such wheat as was sold caused a liquidation in discounts, which, on November 24 had been reduced to $10,805,356.26. The demand, 7 due to the feeding season, again started the account upward, and on December 31 the branch was carrying loans aggregating $13,258,647.74. The decline of deposits having been more rapid than the reduction of loans, made it difficult for member banks to maintain their required reserves and resulted in an increased number of penalties. During the year 110 banks were penalized for deficient reserves, as compared with 74 in 1919. In this connection it should be kept in mind that in 1920 penalties were assessed for weekly periods for reserve city banks and semimonthly periods for other banks, while in 1919 all were on a monthly basis. Oklahoma City branch.—Mention w^as made in the last annual report of the order of the Federal Eeserve Board, dated December 17, 1919, requiring this bank to establish a branch office at Oklahoma City, particularly to expedite shipments of currency to and from member banks in the State of Oklahoma and to provide better facilities for intrastate clearing of checks. The smallest number of items passing through the transit department at Oklahoma City was on the opening day when 15,588 items, having a total value of $1,570,595.02, were handled. The record day was September 20, with a total of 69,588 items aggregating $12,166,640.01. From the date of opening to December 31, 4,628,271 items, having a total value of $982,458,801 passed through the transit department. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10 KANSAS CITY. 545 MISCELLANEOUS. The increased activities during the year made it necessary to enlarge our credit and analysis departments. With the adjustment department as a nucleus, it is proposed to install at an early date a strictly statistical department to compile and maintain currently statistics and analyses relating to practically every phase of the operation of the bank. A library department has been installed with a trained librarian in charge. This department will have custody of all financial periodicals, library books, and such other matter as should be properly filed within it. SCHEDULE 1.—Statement of condition Dec. 31, 1917-1920. [Tn thousands of dollars.] 1920 RESOURCES, Gold and gold certificates 4,026 i 191 155 1,711 Gold settlement fund—Federal Resen e Board 23,957 I 25,933 23,237 37,263 Gold with foreign agencies 153 ! 6.304 291 2,625 Total gold held by banks 28,141 ! 32,428 23,683 41.599 G old with Federal Reserve ageni s 40,769 i 39,409 54,484 42,025 G eld redemption fund 5,255 4,375 3,590 507 Total gold reserves 74,165 76,212 81,757 84,131 Legal teuder notes, silver, etc. 2,332 364 101 58 Total reserves. 76,497 76,576 81,858 84,189 Bills discounted (secured by Government war obligations) 29,707 45,290 20,499 Allother. 80,634 48,090 36,955 35,055 Bills bought in open market. 2,171 18,692 14,203 1,338 Total bills on hand j 112,512 112,072 71,657 35,393 United States Governmen t bonds I 8,867 8,868 8,8G6 8,849 United States Victory notes. 1 United States certificates of indebtedness j 12,821 15, 067 4,378 1,784 Total earning assets 134,201 136,007 84,901 47, 026 BBaannkk pprreemiissses 1,041 462 500 UUnclollletcdt edi titems and other deductions from gross deposits 55,652 83,429 64,879 27,916 5 per cent redemption fund against Federal Reserve Bank notes 916 I 958 566 400 All other resources 349 496 599 Total resources.. 268,656 297,928 233,303 159, 531 LIABILITIES. Capital paid in 4,455 4,016 3,659 3,397 S urplus 8,395 3,957 Government deposits 2,669 1,790 5,450 7,861 Due to members—reserve account 74,318 90,406 67,318 72,975 Deferred availability items , 47,631 67, 758 29,221 10,624 Other deposits, including foreign G oveminent credits 678 3,724 691 997 Total gross deposits 125,296 163,678 102,680 92, 458 Federal Reserve notes in actual circulation Ill, 578 104' 089 112, 445 55,373 Federal Reserve Bank notes in circulation j 14,221 19, 533 11,448 8,000 All other liabilities -. 4,711 2,655 3, 071 303 Total liabilities 268,656 297,928 233,303 159, 531 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—Movement of principal asset and liability items during 1920. Or Amounts in thousands of dollars.] Discounted bills. Purchased bills. Reserve percentages Discounted for member banks in this district. Date. e a a T s r s o n e t i a t n s l g . T he o l t d a . l c F R o o w e u e t d h n i d e t e i t h r s e r a - d l A. B. C. cha o P s p u e e r d n - in F c o f h e P r t d a o u h s e m r e e r - r a d l T he o l t d a . l se U S cu n ta r i t i t t e e i s d es. re T s c e a o r s t v h a e l s. dep N o e s t its. n c R F i o t e e r i t c d s o e e u e n s r l r v . a i a n - e l Actual. ju A st d e - d. 2 Cj Reserve Secured market. Reserve Banks.1 Total. w e b r y a n r m G o o e b v n li - t - P (B e - r * c - e A n ) t . Banks. O gations. w Jan 2 131 597 88 176 16 209 104 385 48 453 46.4 9 481 8,086 17 567 25 854 81 696 81 175 103 680 44.2 39.8 9 130' 075 89 164 11,850 101,014 49,204 48.7 8,947 6,264 15,211 25,700 74,501 73,834 102,214 42.3 39.1 16 135 411 91 750 5,000 96 750 38, 262 39.5 8 977 5,036 14,013 29 648 76 561 81 901 101,485 41.7 41.8 23 126 037 91 819 3,750 95,569 37, 582 39.3 8,534 990 9,524 24,694 86,019 82, 697 100, 728 46.9 45.4 30 120 048 87 947 87 947 32 806 37.3 7,910 7,910 24,191 90,016 81, 831 99,565 49.6 49.6 Feb 6 . .. 12l'239 87' 885 87,885 30,745 35.0 7,246 7,246 26,108 96,130 88,761 100, 259 50.9 50.9 13 126 852 86 964 — 5,000 81 964 27 636 33.7 6,801 5,050 11, 851 28,037 87,427 85,296 100, 539 47.0 52.5 20 136; 095 100 501 - 9,950 90, 551 35,888 39.6 5,265 5,050 10,315 25, 279 81,096 87,157 101, 563 43.0 50.9 27 130, 261 98 569 - 5,000 93,569 32,762 35.0 1,787 5,050 6,837 24, 855 89,922 89,295 102,214 47.0 52.2 Mar. 5 132.805 102,447 - 4,470 97,977 35,741 36.5 500 5,050 5,550 24, 808 87,816 89,061 103,190 45.7 50.6 12 130 128 100 988 - 4,300 96,688 35, 479 36.7 650 3,726 4,376 24, 764 83, 528 82, 586 102,784 45.1 49.4 19 129 775 102 599 — 3 685 98 914 33 062 33.4 700 2,617 3,317 23,859 80 854 80,028 102,731 44.2 47.7 26 128 945 104,542 104,542 34,019 32.5 780 1,871 2,651 21, 752 83, 532 82,934 101,613 45.3 46.3 Apr 2 134 482 111 360 111,360 39,413 35.4 882 447 1,329 21, 793 77,317 82,341 101,407 42.1 42.3 9 132 369 108,772 108,772 33,323 30.6 432 447 879 22,718 77,659 80, 557 101,846 42.6 42.8 W 16 130 914 108 228 6 000 114,228 38,658 33.8 461 461 22, 225 72,199 75,043 100,561 41.1 37.7 o 23 130,748 108,072 11,800 119, 872 40, 855 34.1 461 461 22,215 74, 706 78,923 99,593 41.8 35.2 I 30 133 073 110,625 15,871 126,496 42,407 33.5 461 461 21, 987 75, 834 83,339 98,850 41.6 32.9 May 7 132 613 110 319 15 000 125 319 43,244 34.5 361 361 21,933 78 735 85,884 98,703 42.7 34.5 14 134 421 112,118 7,000 119,118 45,681 38.3 361 361 21,942 75,088 84,478 98,375 41.1 37.2 21 133 630 110 808 14 248 125 056 47,370 37.9 920 920 21,902 77 082 85 909 98,036 41.9 34.2 28 135 139 111,970 13,865 125,835 46,748 37.1 1,309 1,309 21, 860 74,383 84,986 97, 572 40.7 33.1 June 4 129 981 106 737 15 430 122 167 47,076 38.5 1,396 1,396 21 848 75 977 79, 494 99,089 42.5 33.9 11 131 202 107,664 9,779 117,443 42,970 36.6 1,696 1,696 21,842 72,652 78,444 97,913 41.2 35.7 18 134 561 110 500 11 144 121 644 43,953 36.1 1,989 1,989 22 072 71 599 80,209 98,364 40.1 33.8 25,,,.,...,.,-,- 134,186 110,138 12,958 123,096 46,245 37.6 2,102 2,102 21,946 74,317 83,346 97,622 41.1 33.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 2. 134,507 110,415 15,936 126,351 47,376 37.5 2,379 2,379 21,713 74,340 83,177 98,102 41.0 32.2 9. 134,105 109,682 12,767 122,449 47,092 38.5 2,616 2,616 21,807 74,356 82,309 98,651 41.1 34.0 16. 130, 867 106,384 19,493 125,877 47, 577 37.8 2,736 2,736 21,747 74, 522 78,728 99,190 41.9 30.9 23 133,500 108,678 18, 861 127,539 46,861 36.7 3,070 3,070 21,752 71.797 78,158 99,621 40.4 29.8 30 133,966 109,199 22,902 132,101 48,627 36.8 3,016 3,016 21,751 70,089 77,460 98, 887 39.7 26.8 Aug. 6 134,902 109,276 25,756 135,032 51,819 38.4 3,916 3,916 21,710 75,518 81,643 100, 454 41.5 27.3 13 123, 413 97,695 23,534 121,229 45,831 37.8 4,005 4,005 21,713 77,272 70,634 101,832 44.8 31.2 20 135,322 109,608 17,640 127,248 47,499 37.3 4,016 4,016 21,698 72,689 76,297 103,655 40.4 30.6 27. 135,381 109,704 22,247 131,951 50,412 38.2 3,984 3,984 21,693 73,230 76,213 103, 780 40.7 28.3 Sept. 3 135,424 110,220 21,018 131,238 48,592 37.0 3,510 3,510 21,694 74,903 76,247 105,151 41.3 29.7 1 1 0 7 , 1 13 3 9 4 , , 4 8 8 8 9 6 1 1 0 1 9 4 , , 0 2 9 7 4 7 2 2 2 6 , ,7 8 2 4 9 2 1 1 3 4 1 1 , , 9 0 3 0 6 6 4 50 9 , , 2 0 4 3 0 8 3 3 7 5. . 6 2 3 3, , 8 7 7 01 4 3 3 , , 7 8 0 7 1 4 2 2 1 1 , , 6 7 9 3 5 5 7 8 2 0 , , 6 0 9 1 3 0 7 8 1 3 , , 6 9 7 6 5 7 1 1 0 0 6 6 , , 7 5 1 0 1 8 4 42 0 . . 0 8 2 2 7 8 . . 9 0 N D O o e c c v t . . . 2 2 3 1 2 2 2 1 1 1 1 3 0 6 3 0 5 4 2 9 9 7 2 1 8 5 . . . . , . . . . . . . . . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3 3 3 4 3 3 3 3 3 0 6 4 9 7 8 9 7 5 3 9 4 2 4 5 , , , , . . , , , , , , , , , 1 7 0 0 7 2 4 3 9 6 3 6 0 8 5 7 9 2 2 0 8 4 4 5 3 3 4 0 9 3 1 9 6 5 3 6 6 2 3 8 2 7 0 9 6 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 1 1 1 1 0 1 0 0 5 9 3 4 5 3 1 2 2 5 0 9 9 6 7 ; , , , , , , , , . , , , , , 8 5 4 6 0 5 5 6 7 3 1 7 1 7 7 3 1 3 6 9 8 9 0 9 9 2 1 0 7 8 5 8 4 4 4 7 3 8 8 4 7 8 4 7 5 2 4 2 2 3 2 2 3 4 4 4 4 4 4 4 9 4 8 1 8 9 2 7 0 0 3 1 5 1 1 , , , , , , , , , , , , , , , 0 5 8 2 1 0 4 0 9 9 0 7 7 8 1 8 0 6 9 6 6 0 6 8 6 3 6 8 7 7 6 3 6 5 5 3 0 4 6 9 0 4 4 5 8 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 4 6 4 5 5 4 4 6 4 4 4 4 5 4 2 0 5 6 3 1 3 9 0 5 9 2 4 0 9 , , , , , , , , , , , , , , , 0 4 O 2 1 4 9 6 2 0 7 1 6 9 0 8 7 i 9 8 3 5 7 8 7 9 2 2 6 9 3 1 l 9 0 4 9 2 7 2 0 8 8 0 0 4 4 4 5 S 5 4 4 4 4 4 4 4 4 4 O 3 4 4 6 9 4 8 3 5 3 8 5 1 8 . , , , , , , , , , , , , , , 1 8 4 3 9 8 6 2 8 6 6 5 2 0 1 9 9 3 9 7 1 0 0 4 6 6 8 4 2 0 1 7 6 6 1 3 3 7 9 7 7 4 2 0 1 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 1 1 3 1 0 1 5 1 0 2 1 0 1 4 9 . . . . . . . . . . . . . . . 4 0 6 4 9 7 4 0 2 5 5 3 8 1 8 3 3 3 2 2 2 2 2 2 2 1 1 1 1 1 , , , , , , , , , , , . , , , 9 1 9 8 3 5 6 5 2 0 7 3 3 4 3 0 3 1 6 5 4 1 7 3 1 2 1 3 7 3 4 5 8 0 1 1 6 2 7 1 4 3 5 8 5 3 3 3 2 2 2 2 2 2 2 1 1 1 1 1 , , , , , , , , , , , , , , , 5 1 3 3 6 7 9 0 5 9 2 3 8 4 3 2 1 5 4 1 6 0 3 1 1 3 7 3 7 3 1 6 1 1 3 0 4 5 8 7 2 5 4 8 4 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 1 , . , . , , , , , , , , , , , 6 6 6 6 6 6 6 6 6 6 6 7 6 6 6 9 9 9 9 9 8 9 9 9 9 8 4 8 8 8 6 3 3 4 4 9 4 4 4 4 9 9 9 8 8 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 5 6 7 4 3 4 3 2 6 7 7 5 0 1 4 , , , , , , , , . , , , , , , 8 2 6 4 3 2 2 6 8 2 7 8 4 2 8 5 0 8 6 6 1 3 8 2 7 5 9 9 7 8 6 1 1 9 2 7 5 5 5 9 4 5 8 4 9 6 6 7 7 7 6 7 7 7 7 7 7 6 6 7 7 7 1 8 2 1 6 4 4 2 6 1 6 7 6 , , , , , , , , , , , , , , , 0 3 7 4 6 2 6 1 5 2 2 3 5 1 5 2 2 7 7 2 5 4 4 2 8 0 0 8 2 5 6 1 7 4 7 0 3 3 8 8 7 7 3 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 1 0 1 0 0 1 0 0 1 1 0 1 8 1 7 1 0 8 1 8 9 9 8 3 0 , , , , , , , , , , , , , , , 6 1 3 5 7 0 8 3 5 7 3 4 5 8 8 2 6 3 7 5 0 5 5 2 6 5 9 6 2 7 1 1 6 5 6 2 0 3 9 8 6 4 6 3 4 4 4 4 4 3 3 4 4 4 4 4 4 3 4 4 1 2 1 2 9 9 0 3 0 1 0 1 9 1 1 . . . . . . . . . . . . . . . 1 7 3 5 5 3 9 4 9 9 1 2 5 8 4 1 1 2 2 2 1 1 1 1 2 2 2 2 1 1 9 4 9 4 5 5 7 8 7 7 6 2 5 4 8 . . . . . . . . . . . . . . . 3 3 1 4 9 1 4 4 4 7 7 5 5 2 8 g xn 1 Minus sign indicates paper discounted for other Federal Reserve Banks. 2 Adjusted percentages are calculated after increasing or reducing reserves held by the amount of accommodation extended to or received from other Federal Reserve Banks. H Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

548 ANNUAL REPORT FEDERAL RESERVE BOARD. FEDERAL RESERVE BANK OF KANSAS CITYi. MOVEMENT OF EARNING ASSETS II PURm6 1920. so UNITED STATES SECURITIES 25 25 PUB CHASED BILLS MELD #0 60 40 V— ^^ •* mm, 20 PERCEHTA6E OF WAR PAPER TO TOTAL DISCOUNTS FORBAUKSIH DISTRICT. IPS ISO 12S !OO PS so 25 DISCOUNTED BILLS. (SEE MOTE BELOW) IPS ISO TOTAL EARNING ASSETS JAN\FE&\MAR.APR\ <\ixc. 1 A:Jtotersecured by GoverTvntentY&rObligations dticcartf&lfbrSaitfCs inDistrut. B:Mal^afierdiscoarUjed •fbr$anKsui2>is£ricd. CJM^tedJikld SjuLcebdweeji lutes\B'andC'represent- where and -wh&rebelowlmcJt-Skjta' redzseoiuifedwi&ij o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10—KANSAS CITY. 549 NET DEPOSIT LIABILITY r.R.NOTE CIRCULATION, CASH RESERVES.AND RESERVE RATI0S.I92O. 70 70 60 60 SO SO V **>— A -A- 40 40 \ 30 30 20 20 10 10 O 0 RESERVE PERCENTAGES. ACTUAUA*, ADJUSTED »B". SEEMTEBELOW. 100 I ~\ 1 1 1 1 1 1 1 1 1 1 \IOO PS 7S F.R. NOTE CIRCULATION 22S 22S DEP0SITANDFRM0TEUABIUTIES;l:,AIiDTOrAL RESERVES, »0: \JAN. FEB.MAR\APR.MAY JUPiE JULY AUG.SEPT,OCT. NOV. DEC Jfdjusded jtercetibages are adculafzd, after increasing or reducing resenre*hdd,-bythe-OfttocLntofacccmodatiow t dd l ^ d & k ^ M3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.— Volume of paper discounted and bought. o [In thousands of dollars.] Discounted paper. Purchased paper. Total disr oimted and purchased paper. Secured by Month. U S n ta i t t e e s d Bankers' Trade Bankers' Dollar Trade Total. m G e o n v t e w rn a - r a a c n c c e e p s t . - a a c n c c e e p s t . - All other. Total. a a c n c c e e p s t . - exchange. a a c n c c e e p s t . - 1920 1919 1918 1917 obligations. January 118,779 84,353 253 34,173 100 100 118,879 102,388 40,206 2,502 A F M e p a b r r i r c l u h ary 1 1 1 0 4 3 5 2 0 , , , 4 2 0 0 6 7 6 3 3 6 8 9 9 4 0 , , , 7 9 5 0 9 5 6 1 2 145 3 5 4 1 7 4 8 8 9 3 5 4 5 0 4 , , , 3 9 6 8 9 2 2 4 7 3 4 1 3 5 3 0 0 1 3 4 1 3 5 3 0 0 1 1 1 1 0 4 3 5 2 0 , , , 8 2 5 5 0 9 6 4 3 1 1 9 4 2 0 5 9 , , , 6 5 3 9 5 8 1 0 2 3 2 5 2 1 5 , , , 0 5 0 8 5 1 4 4 9 2 2 2 , , , 3 5 5 9 8 7 4 0 3 %% o w May 133,478 91,403 30 828 41,217 948 948 134,426 147,389 95,917 6,472 July 142,708 103,360 30 1,002 38,316 1,757 1,757 144.465 137,092 63,442 14,078 H June 147,853 108,277 31 1,023 38,522 2,064 2,064 149;917 109,923 83,261 18,372 August 145,550 107,032 14 623 37,881 3,515 3,515 149,065 104,100 58,808 21,716 September 158,105 100,775 47 1,601 55,682 2,857 2,857 160,962 140,561 78,626 30,487 October 163,969 97,505 49 1,122 65,293 2,078 2,078 166,047 171,179 124,422 46,661 November 140,573 89,541 11 1,050 49,971 970 970 141,543 145,935 110,050 72,235 December. 139,186 86,531 12 1,295 51,348 1,973 1,973 141,159 157,493 84,823 44,446 Total: 1920 1,667,943 1,114,026 369 10,142 543,406 17,173 17,173 1,685,116 1919 1,555,597 1,188,261 357 7,487 359,492 26,086 26,036 50 1,581,683 1918 833,521 475,659 10 10,401 347, 451 14,691 14,657 34 848 212 1917 237,691 53,087 197 2,646 181,761 i 26,825 26,825 1264,510 i Includes $9,204,262 of acceptances purchased from the Federal Reserve Banks of Boston and New York. c Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10 KANSAS CITY. 551 SCHEDULE 4.—Earnings and expenses. 1920 1919 1917 EARNINGS. Bills discounted $6,441,476.47 !, 888, 839. 25$2,643,990. 71 $438,831.43 Bills bought, acceptances 211, 974.98 340, 875. 06 157,982.45 171,112.15 United States securities 505, 539. 24 405, 399. 83 312, 442. 84 256,792.18 Municipal warrants 5,136. 63 Transfers—net earnings 11,749.90 198, 748. 86 202, 521.45 45, 569. 84 Sundry profits 14, 321. 63 20, 914. 39 11, 576. 59 1, 111. 99 Deficient reserve penalties (including interest) 238, 424. 89 106, 704. 52 99,928. 66 37,395. 78 Service charges, net 23,493. 43 Total earnings 7,409, 987.31 4,961,481. 91 | 3,451,936.13 j 955,950.00 CURRENT EXPENSES. Expenses of operation: Federal Reserve Board assessments 34,221.40 28,150.57 17,998.37 13,118.24 Federal Advisory Council 330. 00 300. 00 270.00 370.00 Governors' conferences 626. 23 497. 74 430.09 665.23 Federal Reserve agents' conferences 120.61 360.49 327. 87 Salaries- Bank officers 116,273.96 91,604.11 68,045.47 37,781.97 Clerical staff 794,286.34 453,258. 48 188,679. 56 39,684.21 Special officers and watchmen 25,275. 01 14,423.07 5,609.11 All other 35,693. 82 11,697.97 784. 50 1,570. 05 Directors' fees 7,285. 00 6,735. 00 8,260.00 3,975. 00 Per diem allowance 7,290. 00 6,438. 25 3,675.00 3,660.00 Traveling expenses 4,956. 79 5,101. 83 6,553. 24 4,192.65 Officers' and clerks' traveling expenses 28,085.33 13,959. 06 2,425. 80 1,203. 09 Legal fees 2,542. 50 1, 825. 00 1,225. 00 775.00 Rent 41,326.18 31,819. 50 21,262. 71 8, 849. 96 Taxes and fire insurance 4,216. 85 645.62 169. 04 Telephone 5,627. 27 3,734.18 2,481. 04 810. 40 Telegraph 37,309.48 12,233. 45 4,454. 90 565.11 Postage 115,505. 65 78,769. 04 63,782. 23 8,838.00 Postage and insurance on gold concentration.. 1,633.71 17, 804. 26 35, 800. 81 Postage and insurance on silver concentration. 115.16 2,7S9.41 1,076. 30 Currency shipments 57,425. 27 27,075. 04 1,412. 27 Expressage 2,144.22 2,467. 58 466.38 1,233.64 Fidelity bond premiums and group insurance.* 29,206.64 20, 805.92 6,004. 52 1,871.00 Light, heat and power 5,720. 45 4,546. 41 2,522. 58 1,184.56 Printing and stationery 94,787.13 49,781. 97 26,181. 58 7,314. 00 Repairs and alterations 18,147. 32 11,508. 67 5,020.04 286. 74 All other 43,963. 25 20,287. 03 18,617.18 17,388.17 Total operating expenses } 1,514,115. 57 918, 619. 65 493, 535.1 155, 337.02 Cost of Federal Reserve notes 97,477.12 131,339.12 98,542.01 48,679.35 Miscellaneous charges account note issues (including taxes on Federal Reserve Bank notes).. 117,326.40 81,820/72 57,017.18 20,885.26 Depreciation furniture and equipment 126,707. 39 54,289. 85 46,710.47 38,353.22 Transit department disbursements, net deficiency.. Bank premises : : 2,333.33 |. Total current expenses I 1, 857,959. 81 | 1,186,0G9. 34 | 695, 805. 25 j 271, 450.94 Current net earnings i 5,552,027. 50 3, 775,412. 57 2,756,130.88 I 684,499.06 PROFIT AND LOSS xiCCOUNT. j Earnings | 7,409,987.31 4,961,481. 91 3, 451,936.13 955,950.00 Current exxppeennssees: ! 1, 857,959.81 1,186, 069. 34 695, 805. 25 3?1, 450.94 Current net earnings 5, 552,027.50 I 3,775,412.57 I 2,756,130. 88 684,499. 06 Additions to current net earnings on account of— Amount previously set aside for depreciation United States bonds 147,949.58 Profit and loss account, Jan. 1 293,40740 91,381 23 All other 233.30 2,351.68 Total. 5,552,260. 80 3, 923, 362.15 3,051,889.96 775,880.29 i Debit. 45525°—21 36 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

552 ANNUAL REPORT FEDERAL RESERVE BOARD. SCHEDULE 4.—Earnings and expenses—Continued. 1920 1919 1918 1917 PROFIT AND LOSS ACCOUNT—continued. Deductions from current net earnings on account of— Bank premises $100,000.00 Premium on United States bonds i i $75, 462.42 Reserve for depreciation United States bonds. $11, 579.19 220, 734.00 Cost of unissued Federal Reserve notes 42, 507. 74 Total deductions 11, 579.19 320, 734.00 117, 970.16 Net earnings available for dividends, surplus, and franchise tax . 5,540,681.61 $3,923,362.15 2 731,155.96 fi57 010.13 Dividend s paid 257,672. 52 228,755. 50 309, 729.25 364, 502. 73 Transferred to surplus fund 3,042, 780. 88 3,694,606. 65 *2, 421, 426. 71 Franchise tax paid United States Government... 2, 240, 228. 21 Profit and loss, Jan. 1,1918 . 293,407.40 1 Includes $1,210,713 reserve for Government franchise tax transferred to surplus fund in 1919. SCHEDULE 5.—Currency receipts from and shipments to member and nonmember banks, [In thousands of dollars.] Receipts. Shipments. Total receipts. Total shipments. Month. b m F a b r n e o e m k r m s - . b m F n a b r n o e o e k m n r m - s - . b m a b T n e e m k o r s - . b m n a b T n o e e m k n o r s - - . 1920 1919 1918 1917 1920 1919 1918 1917 January 16,000 73 9,200 17 16,100 11,690 5,500 1,500 9,200 2,290 4,000 1, 500 February 9,900 82 12,000 78 9,900 7,600 3,500 7,000 12,100 4,800 3,000 1,500 March . 13,600 60 12, 200 39 13,600 7,900 3,600 3,000 12,200 6,300 3,500 2,000 April 16,100 107 11,200 5 16, 100 8,200 4,000 2,500 11,500 5,400 3,000 2,500 May.... 13,100 124 11,400 13,200 10,900 5,000 3,000 11,000 6,100 4,000 2,000 June. . 15,900 167 12,500 18 16,000 11,000 6,000 2,500 12,500 6,000 5,000 3,500 July 14,800 . 172 14,200 46 14,800 13,000 6,500 3,000 14,200 9,000 5,000 2,000 August . 13,200 29 17,500 17 13,200 10,800 4,500 3,500 17,500 11,800 3,500 2,500 September 16,400 25 17,300 89 16,400 11,700 5,500 3,000 17,300 13,400 4,500 3,000 October 17,400 18 15,000 43 17,500 14,400 7,500 3,500 15,100 10,700 5,000 3,000 November 16,600 231 13,400 11 16,800 10,200 6,000 3,500 13,400 12,900 4,000 3,500 December 19,700 270 19,400 123 20,000 14,500 7,400 4,000 19,500 13,700 5,500 3,000 Totals: 1920.. 182, 700 1,400165,400 500183,600 165, 500 1919.. 172, 400 800102,400 700 132,090 102,390 1918.. 64,000 1,000 49,300 700 65,000 50,000 1917.. 34,500 500 29,900 100 35,000 30,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10 KANSAS CITY. 553 SCHEDULE 6.—Operations of check clearing and collection department, [Amounts in thousands of dollars.] Items drawn on banks in own district. Items drawn on Items forwarded to Treasurer of other Federal Re- Monthly period Located in Federal Located outside Fed- United States. serve Banks and ending on the Reserve Bank and eral Reserve Bank their branches. loth of— branch cities. and branch cities. Number. Amount. Number. Amount. Number Amount. Number. January 429, 423 486,935 2, 820, 266 342, 974 91, 510 10, 649 334, 360 128,181 February 411, 526 468, 728 2, 719,114 326, 084 84, 959 11, 720 314,119 111,992 March 507, 152 559, 129 3,140, 794 408, 240 66, 317 10, 397 349, 512 125, 315 April 647, 892 570, 363 3, 333, 457 403, 395 135, 178 13, 583 388, 930 126, 287 May 654, 507 500, 744 3,214,690 350, 625 218, 147 11, 497 369, 104 June 586, 886 478, 335 3, 096, 632 341, 539 110, 288 361, 049 108, 462 July 497, 215 503, 454 3,144, 250 355, 686 147, 939 12, 443 373, 421 113, 048 August 488, 720 521, 429 3, 392, 731 341, 454 99, 300 12, 859 404, 235 103, 518 September 478, 945 584, 802 3, 862, 256 355, 422 78, 682 10, 753 468, 884 114, 111 October 466, 099 599, 533 3, 872, 011 368/490 149, 754 13, 031 448, 923. 119, 709 November 459, 914 555, 508 3, 778, 534 331, 985 220, 550 17,152 425, 108 106,486 December 449, 990 491,114 3, 864,163 301, 594 128, 938 11, 567 478,171 108, 087 Totals: 1920 6, 078, 269 6, 320,074 40, 233, 898 4, 227, 488 1, 531, 562 145, 547 4, 715,816 1, 373, 504 1919 3, 316, 098 4, 498,626 21,160, 4673, 066, 166 1, 770, 353 170, 284 2, 224, 021 1, 580, 547 1918 1,615, 722 3, 488, 040 9, 389, 296 2, 502, 999 753, 008 119, 942 1,060, 205 1, 561,143 1917 704, 296 1, 440, 976 3, 466, 259 859, 349 190, 919 37, 876 200, 091 1,147, 437 Total.* Monthly period ending on the 1920 1919 1918 1917 15th of— Number. Amount. Number. Amount. Number. Amount. Number. Amount. January 3,675, 559 968, 739 1, 764, 882 653, 622 485, 972 534, 564 344, 245 205,066 February 3, 529, 718 918, 524 1, 883, 970 736, 061 463, 295 434, 219 304,143 155,472 March 4, 063, 775 1,103, 081 1, 874, 783 643, 942 542,802 578, 233 340, 341 196,973 April 4, 505, 457 1,113, 628 2, 420, 547 736,129 591, 598 520, 284 323, 239 213,141 May 4, 456, 448 971, 174 2,109, 614 636,139 593, 264 529, 725 330, 893 232,861 June 4,154, 855 938, 232 2,182, 222 742, 960 998, 002 607, 297 321,167 236,559 July 4,162, 825 984, 631 2,176, 578 742, 660 1,160, 370 651, 488 306, 289 254, 723 August 4, 384, 986 979, 260 2, 343,150 857, 455 1, 405, 750 704, 240 334, 641 245,227 September 4, 888, 767 1,065, 088 2, 568, 892 878, 326 1, 397, 893 665, 923 368, 310 258,204 October 4, 936, 787 1,100, 763 2, 628, 955 885, 269 1, 659, 271 900, 030 502, 959 415, 490 November 4, 884,106 1,011,131 3, 340,176 934, 298 1, 708, 938 801, 980 544,383 547,345 December 4, 921, 262 912, 362 3,177,170 868, 762 1, 811, 076 744,141 540, 955 522, 577 Totals: 1920..52,564, 545 12,066,613 1919 28, 470,939 9, 315,623 1918 12, 818, 231 7,672,124 1917.. 4, 561, 565 3, 483, 638 1 Exclusive of duplications on account of items handled by both parent bank and branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MSTRICT NO. 11.—DALLAS. WILLIAM F. RAMSEY, Chairman and Federal Reserve Agent. INTRODUCTION. In attempting to review briefly the activities of the Federal Reserve Bank of Dallas for 1920, it is appropriate to refer to some of the conditions prevailing throughout the year. Among the important problems which have confronted the management of the bank in its operations of 1920 were those of orderly readjustment, and the necessity of limiting the expansion of credit without unduly interfering with the processes of production and distribution. Many of the economic evils of the twelve months immediately preceding this year were inherited with the turn of 1920, and some substantial readjustments in the whole credit and financial structure were inevitable. Early in the year the Federal Reserve Bank undertook an educational campaign among member banks with a view of encouraging liquidation and of effecting a reduction in the volume of loans for investment or capital purposes in order that the agricultural and industrial interests of the district might be assured the support during the busy season which their importance justified. The closing months of 1919 witnessed an era of reckless extravagance and indulgence in luxuries at a pace heretofore unequalled. After this period of "fictitious prosperity/7 as the result of abnormal profits, high wages, and high prices of commodities, attempts to restore financial operations to anything like a normal, or prewar, basis were slow of accomplishment. While in some Federal Reserve districts discount rates were greatly increased in an effort to check speculation, in this district it was not deemed expedient to tax unduly the agricultural and livestock interests, which had the greatest demand for credit, and though rates were somewhat increased, the advance was not as great as in some other districts. It is still believed that this procedure was one of wisdom. Early in the year the bank had a strong reserve position, but as the demand for credit greatly increased during the spring months, in April rediscounting with other banks became necessary. This condition has obtained continuously since that time. On account of the heavy decline in the price of cotton and other products of the farm and ranch, many banks, especially in agricultural sections, are in a greatly extended condition, and the year closes with some uncertainty as to the future. It will continue to be the policy of the bank to extend necessary assistance to those member banks that have been the heaviest sufferers in this regard, and, in every legitimate way, to encourage agricultural and live-stock production. 554 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11—DALLAS. 555 FINANCIAL RESULTS OF OPERATION. Financially the results of the bank's operations in 1920 have surpassed the record of 1919 and of previous years, when the financing of wartime needs had resulted in abnormally high profits. The increase in productive assets of the bank is reflected in gross earnings, which in 1920 amounted to $4,904,521.93, an increase of 60.1 per cent over 1919, when earnings were $3,062,250.84. Current net earnings were $3,354,675.07, as compared with $2,079,415.01 in 1919, an increase of $1,275,260.06, or 61.3 per cent. The ratio of current net earnings to average paid-in capital in 1920 was 89.2 per cent, as compared with 63.6 per cent in 1919. Depreciation of various assets to an amount considered conservative has been figured in the manner and upon the basis prescribed by the Federal Reserve Board. Reserves for possible losses have also been set up. The increased volume of business handled by the bank in 1920, as will be showii by the comparative statistical exhibits which follow, has greatly increased the operating cost. No small part of the increased expenses is due to the free services performed for member banks, such as transportation charges on currency receipts and shipments, telegraphic charges on transfers, etc. The advance in replacement cost of equipment and stationery, the increased wage scale, and the necessary additions to the clerical force, are other factors contributing to the heavy cost of operating the bank. Expenses for 1920 were $1,549,846.86, an increase of $567,011.03, or 57.7 per cent over 1919. After making appropriate adjustments in the profit and loss account, following the dividend payment of December 31, 1919, the bank's capital was $3,420,700, and surplus, $3,029,937. On June 30 the regular semiannual dividend at the rate of 6 per cent per annum, covering the operating period, January 1 to June 30 and amounting to $106,284.71 was paid. At the same time there was carried to surplus $1,122,333.60. On December 31, 1920, the regular dividend covering the operating period, July 1 to December 31, and amounting to $119,139.18 was paid. The balance in profit and loss account of $1,880,473.47 wTas added to surplus, making a surplus on December 31, 1920, of $6,032,744, or 73.5 per cent of the bank's subscribed capital. Schedule 1 shows comparative balance sheet as of December 31, 1917, to 1920. The growth in the banking business of the district is reflected in the increase of earning assets, gold reserves, capital, surplus, reserve deposits of member banks, and total resources. Total earning assets on December 31, 1920, were $83,222,544.51 as compared with $77,767,567.87 on December 31, 1919, $56,363,336.64 on December 31, 1918, and $29,639,163.47 on December 31, 1917. The capital of the bank on December 31, 1920, w^as $4,098,550, as compared with $3,420,700 on December 31, 1919, $3,154,300 on December 31, 1918, and $2,794,900 on December 31, 1917. Schedule 4 shows a comparative statement of earnings and expenses for the years 1917, 1918, 1919, 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

556 ANNUAL REPORT FEDERAL RESERVE BOARD. DISCOUNT TRANSACTIONS. In preceding annual reports the increase in discount operations lias been worth}" of special notice. This year is no exception, and the volume of paper handled and number of banks accommodated have reached new totals. From a total of 210 banks served in January, the number increased each month, 600 being accommodated in December. The increase in total bills discounted was $55,229,866, or 4.5 per cent increase over 1919. As compared with 1918 the increase was $692,498,244, or 117.9 per cent. Of the total paper handled, 69.7 per cent consisted of notes of member banks secured by Government obligations. Throughout the year the amount of notes discounted, secured by Government obligations, has constituted a large percentage of the total advances, indicating that the banks are still carrying Government securities in large amounts. A total of 702 banks were accommodated in 1920, as compared with 607 in 1919, and 548 in 1918. Of the number served 94 were banks which previously had not used our rediscount facilities. TRADE ACCEPTANCES. While some progress has been made during the year in the use of trade acceptances in the wholesale and retail trades, the progress in their use has been slow. The bank has responded to many inquiries for forms, and undertaken, as opportunity presented itself, to encourage the practice of taking trade acceptances in settlement of sales. It is believed that some headway is being made, as the advantage of the trade acceptance over the old method of carrying open accounts gains recognition The various associations of credit men throughout the district, and other organizations of business men have, by a campaign of education among business houses, done much toward popularizing this class of paper. BANKERS' ACCEPTANCES. Purchases of bankers7 acceptances during the year aggregated $8,348,278, as compared with $12,415,232 in 1919, a decrease of $4,066,954. Of the total $7,726,193 was purchased from banks in the Eleventh District, and $622,085 through other Federal Reserve Banks. The number of banks handling acceptance credits and of those which accept has increased in the year, and the volume of acceptances created has been larger than previously. The acceptances of many of the larger banks in the district have been sold in the North and East, and such bills have been subsequently purchased by this bank. The use of acceptances and their purchase by the investing public has been encouraged, and it is believed investors are alive to the attractiveness of such paper. It is, however, practically a new form of financing in this district, and the field is still undeveloped. The bank has recently given notice of the discontinuance of the policy of purchasing unindorsed bills of any one drawer exceeding 10 per cent of the capital and surplus of the accept- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11 DALLAS. 557 ing bank. This will doubtless limit the purchases, but should have the effect of distributing the bills in other districts, which is most desirable. RESERVE POSITION. The bank entered the year with a strong reserve position, and for some time its reserve percentage, ranging between 50 and 70, was among the highest in the system. This position was maintained until April. While it continued, rediscounts were taken from other Federal Reserve Banks, the maximum of $23,500,000 being reached on February 28. As the spring months advanced, however, the demands from member banks steadily increased, and reserves declined accordingly. In April rediscounting with other Federal Reserve Banks became necessary, and has been essential since that time in order to maintain legal reserve requirements. In the past the bank has been enabled to retire its paper with other Federal Reserve Banks when cotton moved and the fall liquidating occurred. This has not been possible in 1920, and on December 31 the bank had $26,694,600 rediscounted with other Federal Reserve Banks. CLEARING OPERATIONS. The district clearing-house plan touched upon in the annual report for the year ending December 31, 1919, was discontinued on March 1, 1920, and the name of the district clearing house was changed to the transit department and its operations conducted in accordance with the method outlined in Circular No. 3, 1920. Instead of making an arbitrary charge to the reserve accounts of our member banks covering any debit balances that they would receive under the district clearinghouse plan from a predetermined mail schedule, the total amount of our daily sendings to each member bank is handled as a separate transaction and is charged to its reserve account after receipt of the cash letter has been acknowledged. This plan obviously gives the member bank sufficient time to prepare its reserve account to meet the charge and there is no occasion for adjustments due to irregularities in the mails, over which the Federal Reserve Bank or the member bank has no control. The reserve city clearing house has continued to prove very satisfactory to its members and advantageous to the country banks in making quick settlement of our sendings to them. The banks as a whole are realizing more and more the necessity of paying their checks presented to them through the mails in the quickest time Eossible and are taking advantage of the facilities offered therefor y the reserve city clearing house. This applies to nonmember institutions as well as to member banks. DIRECT ROUTING, Although the statistics exhibited in Schedule 6 of this report show conclusively the increasing number of checks handled during the year 1920 over previous years, a still greater increase would have been shown if it were not for the direct sending privilege accorded member banks. Arrangements may be made, when it is desirable, in order to save time, by member banks, for direct routing of their Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

558 ANNUAL REPORT FEDERAL RESERVE BOARD. items to the head office or branch in the Eleventh Federal Reserve District outside of their territory, or to other Federal Reserve Banks or branches for credit at the head office or branch to which they are attached. Practically 65 per cent of our member banks using our transit facilities have taken advantage of the direct routing privilege, resulting in their not only obtaining quicker credit for their checks, but also in a saving of time and expense in the presentation of the checks and of unnecessary handling and delays in this bank and its branches. " STATION K." A branch of the Dallas post office, officially designated by the Post Office Department as "Station K,"was established in the Federal Reserve Bank at Dallas on February 20, 1920, and began operations on that date. INTRA AND INTER DISTRICT TIME SCHEDULES. Constant attention has been given to the time collection schedule between the Federal Reserve Banks, their branches, and member banks, with the view of insuring collection of checks according to actual transit time. From time to time circulars have been issued giving the availability dates of the collection of checks drawn on the various towns in this district, as well as those drawn on various cities and States of other districts. These schedules are constantly being revised as conditions warrant and will be still further revised until they reflect the actual time in which collection is made. That this is proving satisfactory to our member banks is shown by the increasing number of checks handled each month. During the month of January, 1920, the average number of checks handled in the transit department daily was 68,000, as compared with 82,000 handled in November oi the same year, an increase of approximately 21 per cent. The fact that all banks in the Eleventh Federal Reserve District continue to appear on the par list is also a contributing factor to the increasing number of items handled. This not only simplifies the matter of routing checks to us for collection, but also affords a much quicker and more satisfactory means for collection. COLLECTIONS. Since the establishment of our collection department on January 1, 1918, our facilities for the handling of all forms of collection items for our member banks and other Federal Reserve Banks, their branches, and other banks, have been used to a great advantage. This is clearly shown by the increase in the number of items handled during January and December, 1920. In January we handled 700 items for collection, totaling $1,757,000 against 2,172 items, totaling $5,452,100 during December, indicating an increase of 200 per cent both in amount and number of items. MOVEMENT OF MEMBERSHIP. On January 1, 1920, the total number of national banks in this district was 643, with combined capital and surplus of $106,458,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11—DALLAS. 559 During the year 31 national banks were granted charters. Through liquidation, merger, and other causes 11 banks were dropped from membership, making a net increase of 20, and a total membership on December 31, 1920, of 663. On January 1, 1920, our total State bank membership was 115, with combined capital and surplus of $10,211,000. During the year 74 State banks were admitted, 2 consolidated with other institutions, making a net increase during the year of 72, and a total on December 31, 1920, of 187 State bank members. FEDERAL RESERVE NOTES. The seasonal fluctuations in Federal Reserve notes are indicated in Schedule 2. In contrast to previous years, notes in large amounts were issued well into the spring and summer months, indicating the heavy volume of business which has continued in 1920. In past years the peak in note issues was reached in the fall, when the movement of cotton began. The movement of notes has reflected the necessity for increased circulation, as the result of high prices. Starting in January a reduction in notes outstanding of some $3,000,000 occurred. February showed an increase from $75,534,320 to $80,280,050; in March an increase of $1,500,000 was shown; April showed an increase of $1,750,000; May an increase of $1,200,000; June showed an increase of less than $100,000; July showed a reduction of $3,000,000; August showed an increase of $600,000. In September the seasonal demand began, and an increase of $9,000,000 was shown. October showed an increase of $3,000,000; November showed a decrease of $7,000,000; December a decrease of $3,000,000. FEDERAL RESERVE BANK NOTES. There has-been no change in the amount of the bank's circulation of Federal Reserve Bank notes in 1920, the total being $11,032,400. Of this amount $7,101,000 was in actual circulation on December 31, 1920, $1,643,800 held by the bank and branches and $2,283,600 forwarded to the comptroller and in process of redemption. The increasing demands for currency of small denominations are very largely met by Federal Reserve Bank notes. BANKS AUTHORIZED TO ACCEPT UP TO 100 PER CENT. Four banks were authorized in 1920 to accept drafts and bills of exchange up to 100 per cent of their capital and surplus, making a total of 24 which now have this authority. MEMBER BANK RELATIONS DEPARTMENT. The board of directors of this bank at its regular meeting in April authorized the organization of a member bank relations department. While there was a general understanding of the services performed by the Federal Reserve Bank in extending credit, collecting checks, supplying and receiving currency, many bankers were not familiar with the other operations and services of the bank, and while circulars issued from time to time clearly explained the facilities of this bank, it Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

560 ANNUAL REPORT FEDERAL RESERVE BOARD. was found that many bankers were not reading and digesting them, with the result that very frequently information of value to them was overlooked. It was decided to have field representatives visit ail member banks in this district to discuss with their officers current banking problems, fully explain the services offered, suggest, if possible, how the bank visited could advantageously make full use of the facilities of this bank, and explain the requirements in connection therewith, so that all would thoroughly understand the benefits to which they were entitled, and would be in position to avail themselves, if they so desired, of services which this bank stands ready to perform for members. It was also decided that field representatives should visit eligible nonmember banks and trust companies in the district, and explain the advantages of membership in the Federal Reserve System, soliciting applications, when that course appeared advisable. Work of a special nature, which required a trip by a representative of this bank, has been from time to time assigned to the member bank relations department for attention. In August the Legislature of the State of Louisiana passed a law purporting to give member and nonmember banks in Louisiana the right to charge exchange on all checks received for collection from outside sources, including Federal Reserve Banks. Immediately thereafter approximately 50 nonmember banks, which were remitting at par for items received from the Federal Reserve Bank of Dallas, advised of their intention to cancel their par agreement, and to charge exchange on all items received for collection, Two field representatives of this bank were immediately sent to Louisiana to call upon banks which canceled their agreements, and succeeded in getting most of such banks to again remit at par for items sent them by this bank. Between July 1, when field work was commenced, and December 31, 1920, 321 members and 224 nonmembers, or a total of 5^5 banks in this district were visited by field representatives. A better understanding of our functions, policies, and services has resulted from these personal visits, and a great many more banks are availing themselves of all or part of the services offered to members than was the case at the time the member bank relations department was established. STATE BANK MEMBERSHIP. Seventy-two State bank members were added in 1920. Action on 20 applications was deferred on account of criticisms by examiners, and the applications of four banks were approved, but they failed to qualify for various reasons. With a total State bank membership constituting 23 per cent of all member banks, the State banks have shared proportionately in the service rendered. The successful result of the campaign for State bank members to which reference is made in another section of this report, shows that the facilities of this bank appeal to the State banks, and the most important function, that of rediscounting, has been very freely used by State bank members. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11 DALLAS. 561 BANK EXAMINATIONS. The department of examination has made the folllowing examinations in 1920: State bank applicants 82 Joint, with State bank examiners 58 Special, or independent 10 Total 150 Additional examiners will be added to the department of examination early in the new year, and it is planned to make an independent or joint examination of every State bank member in 1921. It will also be our purpose to conduct these examinations in a manner calculated to be helpful to the member, and by constructive suggestions promote a better understanding of the operations of this bank. BANKING QUARTERS. In addition to the bank building on Commerce Street, operations in five other locations were continued in 1920, the same as during the year previous. Although very satisfactory progress on the bank's new building was made in 1920, it was not possible to get relief by removal to it until December, when the bookkeeping, mailing, and transit departments were transferred to the new location. This partially relieved the very congested condition in the bank building proper. While all of the departments have worked under the greatest handicaps, through lack of space, conditions in the cash, trust, and loan and discount departments were the most unsatisfactory. It is hoped that all departments can move to the new building by February 15, 1921, and the problem of housing will be permanently settled. FISCAL AGENCY DEPARTMENT. The operations of this department during the year 1920 w^ere somewhat different than heretofore, due chiefly to the elimination of a bond issue and the addition of the temporary-permanent coupon bond exchanges. Plans for the latter were completed well in advance and this work has been carried on with dispatch. A separate division was created at first for handling these transactions but after the peak load was over it was, for economy's sake, merged with the conversion division. For a like reason the depositary division was merged with the certificates of indebtedness division; the work in the depositary division having been reduced considerably on account of cessation of bond payments and increased little incident to the consignment feature oi the temporary-permanent exchanges of bonds. United States Treasury certificates of indebtedness.—Sales of certificates of indebtedness during 1920 were much less than in 1919; in fact, the $66,992,500 subscriptions allotted during 1920 is only 26 percent of the total for year 1919—$262,019,500; however, the 1920 subscriptions were relatively more widely distributed, there being 4,100 subscriptions against 6,100 in year l919 a decrease of approx- 7 imately 35 per cent, compared with the decrease of 74 per cent in amount of subscriptions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

562 ANNUAL REPORT FEDERAL RESERVE BOARD. Considerable activity was experienced throughout the year in connection with purchases and resales of certificates for banks and investors through banking institutions; in fact, it has become a common practice with some of the large member banks to subscribe for a greater amount of certificates than for their own investment, with a view of reselling, thus assisting in supplying the unsatisfied demand usually following the closing of subscription books of certificates. This practice is profitable to the banks making heavy purchases, because such subscriptions are generally paid for by credit through the medium of war loan deposit accounts, thereby increasing their deposits, as well as earning interest on the certificates. Sales and purchases of Liberty bonds and Victory notes.—Advantage is being taken of our facilities offered to member banks in the sale and purchase of Liberty bonds and Victory notes. The total amount of such transactions is small, but these sales and purchases are usually for small amounts and include practically all issues. There being no well-established market in this district, such deals are consummated in the eastern market, we acting merely as forwarding agents. Temporary permanent coupon bond exchanges.—These transactions cover the delivery of permanent bonds, in lieu of temporary bonds surrendered, of the same issue and bearing same rate of interest. The total amount of such permanent bonds delivered during the year 1920 was $63,500,000, the largest proportion of which was of the third loan, $42,350,000 third's being delivered, which amount is 40 per cent of the $104,900,000 temporary coupon bonds delivered in this district on original subscriptions allotted. However, it is not believed that a great many more temporary third's will be presented to us for exchange, on account of the general exodus from the district of these bonds. Full preparation has been made for handling the temporary exchanges of the fourth loan, $133,000,000 coupon bonds having been delivered on allotment in the Eleventh District. Conversion transactions.—Conversion transactions increased 100 per cent over the year 1919. This increase was occasioned mostly by the presentation of temporary 4 per cent bonds of the first and second loans for permanent 4| per cent bonds. Miscellaneous exchanges, transfers, and interchanges.—Under this head come exchanges of coupon bonds for registered bonds, registered for coupon, changes in ownership of registered bonds, and denominational interchange of coupon bonds. These transactions have increased 50 per cent over the previous year, with the exception of denominational interchange, which decreased; however, interchanges are very simple and consume little time. Sale of war-savings securities.—Sales of this class of securities fell off considerably. Banks generally have become prejudiced against handling wTar-savings securities on account of the intricate accounting necessary, and it is difficult to overcome this prejudice. Redemption of w^ar-savings certificates exceed by far the sales. Treasury savings certificates are redeemed only at the Treasury Department, and we are not furnished with figures on these redemptions. Interest coupons and Government warrants paid.—The amount of interest coupons paid during the year was $8,136,465.43, there being 1,935,212 pieces, compared with $6,798,056.63 for 2,035,577 pieces in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTPJCT "NO. 11 DALLAS. 563 the year 1919. The fact that there was an increase of about $1,300,- 000 in amount paid and a decrease of 100,000 in number of coupons is explained by the fact that United States Treasury certificates of indebtedness coupons are for relatively much larger amounts than bond coupons, a large amount of the former being included in 1920 payments. Government warrants paid in 1920 amounted to $52,- 537,635.05, against $117,102,800.82 for year 1919, a decrease of 55 per cent; the number of pieces handled decreased 60 per cent. Shipment of securities.—Thirty-three thousand, seven hundred and eighty-two separate shipments of securities, the par value of which amounted to $370,000,000 in round figures, were made during the year 1920. In 1919 there were 30,153 shipments, amounting to $447,500,000. Securities on hand.—At close of business December 31, 1920, there remained in custody of the fiscal agency custodian of securities and on hand with tellers securities amounting to $101,167,303.27, composed of 53 different varieties or classifications. This total does not include collateral pledged to secure war-loan deposits with designated depositaries, war-savings securities, and permanent coupon bonds outstanding with consignment agents. Such collateral is held by our trust department, trust receipts covering same being issued to and held by the fiscal agency department. OPERATIONS OF THE EL PASO BRANCH. At the close of 1920 there were 59 national and 13 State banks attached to the branch, with capital and surplus of $8,404,000 for national banks, and $1,545,700 tor State banks. During the year there were added three national bank and three State bank members. All El Paso banks are now members, the Security Bank & Trust Co. having completed its membership in December. During the year one member bank suspended operations, being a State bank situated in New Mexico. Discount operations.—On December 31, 1919, total discounts and rediscounts held by the branch aggregated $3,194,356.32, and on December 31, 1920,"an aggregate of $11,677,974.03 was held. Sixtyfive of the 72 members banks discounted or rediscounted paper during the past year. Clearing operations.—During the past year 2,636.925 items, aggregating $526,490,147.04, were handled, an increase over 1919 of 452,081 items, amounting to $70,518,751.76, representing an increase ot 20.7 per cent in number handled. Trust department operations.—During 1920 securities aggregating $6,376,809.16 were deposited and $5,538,804.82 were withdrawn, as compared to deposits of $8,046,589.67 and withdrawals of $7,314,- 660.24 during 1919. This decrease is attributable to the retirement of Treasury certificates, large amounts of which were deposited during 1919. OPERATIONS OF THE HOUSTON BRANCH. Membership,—At the close of the year 1919 the Houston branch had a membership of 101 banks. Many applications for membership were received during 1920 and 27 State and three national banks were admitted. During this same period three national banks were consolidated, while one national and one State bank were transferred Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

564 ANNUAL REPORT FEDERAL RESERVE BOARD. to this territory from the Dallas district, increasing the total membership of this territory to 130, being an increase of approximately 29 per cent for the year. General conditions.—Liquidation of their indebtedness by member banks proceeded in a fairly satisfactory manner during the year 1919, and the year 1920 opened with member bank rediscounts of approximately $3,000,000 and bills payable secured by Government obligations of approximately §5,000,000. With the beginning of the crop planting period of the early spring, advances to member banks increased steadily, and continued to do so throughout the summer months, reaching a maximum on September 3, on which date rediscounts of $13,000,000 and bills payable of $9,000,000 were outstanding as compared to rediscounts of $1,700,000 and bills pa}^able of $6,000,000 outstanding on the same date in 1919. While this comparison shows an increase of $14,300,000 in outstanding loans, reference to member bank reserves on the same dates discloses an increase of only $1,720,000, balances of $9,057,000 on September 3, 1919, and $10,778,000 on September 3, 1920, being carried. The situation at the close of the year 1920 is largely one in which the benefits of the year's labor remain in the hands of the producers who are reluctant to dispose of them at a price lower than the cost of production. Credit department operations.—During the first 11 months of 1920, this department received and examined 963 rediscount offerings, consisting of 12,521 notes, aggregating $54,102,211.03. Of these 11,485 notes, totaling $48,614,119.13, w^ere accepted. Discount operations.—Ninety-six banks availed themselves of the discount facilities of the Houston branch during the first 11 months of 1920. Clearing operations.—During the first 11 months of 1920 this department handled 5,060,934 clearing items, aggregating $1,268,108,288, or a daily average of 15,062 items as compared with a similar average of 12,643 for the period of operation in 1919. The largest number of items handled in any single day was 30,125 in October. Trust department operations.—The trust department continues to show a gradual increase in activity. On August 15, 1919, 11 days after the opening of the branch, trust custodies held amounted to only $26,500, while the peak was reached in October of this year, being $9,222,900. The average amount of securities held for safekeeping and as collateral for 1920 was $6,713,209. Earnings.—From the standpoint of revenue the operation of the Houston branch during 1920 has been quite satisfactory, gross earnings for the first 11 months of $939,410.28 being realized, w]iile expenses of $203,029.85, exclusive of the purchase ot a building site at $65,000, reduce this figure to a net amount of $736,380.43. This represents a monthly average earning of $66,928.67 as compared to a similar average of $24,730.78 for the months during 1919 in which the Houston branch was in operation. REVIEW OF GENERAL BUSINESS CONDITIONS IN 1920. The extraordinary changes in business conditions witnessed in this district, as elsewhere, during the year 1920, present, in review, a record of memorable developments m all lines of industry, trade, and finance. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11—DALLAS. 565 The year 1919 had been a prosperous one for all classes. Wages and the prices of farm products had risen to record levels, and the district entered the new year with a large balance of trade in its favor, as reflected by the fact that the Federal Reserve Bank of Dallas was loaning freely to other districts. The demand for farm products and manufactured goods had so far outstripped the supply that every resource of energy and capital was invoked in behalf of increased production. As one of the results of this situation there was a heavy increase in this district's cotton acreage. Anticipating the financial strain of moving a large cotton crop, as well as foreseeing the inevitable reaction in the price situation, the Federal Reserve Bank of Dallas early in the year began making preparations to meet the approaching crisis by gradually increasing its discount rates and warning the public that a stricter policy of credit conservation was imperatively necessary. Its position received the prompt cooperation and support of the commercial banks, and the month of February witnessed a general increase in interest rates throughout the district. Despite these measures, however, bank loans continued to show a steady increase, until it became necessary for the Federal Reserve Bank to establish a scale of progressive discount rates to be applied to all banks borrowing in excess of their basic line. Toward the end of the summer it became apparent that the production of cotton had materially exceeded the current demand, and the resultant decline in the price of this staple, combined with a similar depression in the live-stock market, as well as practically all other products of the district, accentuated the slowing up that had already manifested itself in the business situation generally as the result of increasing price resistance on the part of retailers and consumers. The drastic decline in merchandise prices which had begun in other sections of the country earlier in the year did not reach the Eleventh District in force until the month of August, although in the case of farm products there had been a steady depreciation for some time prior to that month. Throughout the remainder of the year the downward sweep of prices continued. Coming as it did at the crop-moving season when the credit strain was at its peak, only the effective functioning of the district's financial institutions, aided by the rediscount facilities of Federal Reserve Banks in other districts, made it possible to meet the crisis without serious disaster to the business community. The end of the year found the district completing the harvesting of a 4,500,000-bale cotton crop, with approximately 2,000,000 bales still in the hands of producers; discount rates slightly lower and credit conditions somewhat improved as a result of partial liquidation; wholesale trade and building enterprises inactive; commercial failures and unemployment increasing; retail trade activity fairly steady; and banks generally exerting pressure to secure further liquidation with the view of building up reserves to meet the decline in deposits, as well as to provide for credit demands of 1921. Business and industry still labored under the handicaps of a nation-wide depression, but there were unmistakable evidences of a gradual improvement in general conditions. Enforced lessons of economy and thrift, as well as strong influences directed toward the adoption of a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

566 ANNUAL REPORT FEDERAL RESERVE BOARD. rational program of production for the year 1921, gave pjromise of an early adjustment of the various interests of the district to the new basis of economic conditions. With a large store of wealth in the form of unsold farm and mineral products on hand, the district awaits with confidence the working out of the law of supply and demand. SCHEDULE 1.—Comparative statement of condition on Dec. SI. [In thousands of dollars.] 1920 1919 1918 1917 RESOURCES. Gold and gold certificates.-. 10,008 6, -169 5,722 11,900 Gold settlement fund 2,074 17,073 6,923 24.520 Gold with foreign agencies.. 3,415 204 1.838 Total gold held by banks.... 12,168 26,957 12, 849 38,258 Gold with Federal Reserve agent., 24,484 27,545 22.352 25,037 Gold redemption fund 4,431 3,712 2,193 1,218 Total gold reserves ! 41,083 58,214 37,394 64,513 Legal tender notes, silver, etc ! 4,455 1,197 1,374 779 Total reserves 45,538 59,411 38,768 65,292 Bills discounted: Secured by Government war obligations 15,903 39,376 14,395 3,010 All other 54,793 18,940 31,130 5,730 Bills bought in open market and acceptances acquired from other Federal Reserve Banks 247 6,421 2,448 14,140 Total bills on hand 70,943 64,737 47,973 22,880 United States Government bonds 3,979 3,966 3,990 4,496 United States Victory notes United States certificates of indebtedness.. 8,300 9,065 4,400 1,430 All other earning assets Total earning assets 83,222 77,768 56,363 29,638 Bank premises 1,639 399 Uncollected items and other deductions from gross deposits 42,287 61,325 "23*252" "i5," 086 Five per cent redemption fund against Federal Reserve Bank notes 586 558 312 137 All other resources 726 360 1,135 Total resources.. 173,998 199,821 119,830 110,153 LIABILITIES. Capital paid in. 4,099 3,421 3,154 2,795 Suirrpp*lu 4*152 2,029 Government deposits 1,660 2,900 2,493 6,609 Due to members—reserve account 46,995 63,372 32,453 44.155 Deferred availability items 27,560 39,347 15,250 9' 766 Other deposits, including foreign government credits 245 2,043 Total gross deposits 76,460 107,662 50,204 60,530 Federal Reserve notes in actual circulation 79,453 74,930 59,239 46,788 Federal Reserve Bank notes in circulation—net liability.. 7,101 10,461 5,540 All other liabilities 2,733 1,318 1,693 40 Total liabilities 173,998 199,821 119,830 110,153 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11 DAUAS. 567 FEDERALRESERVE BANK OF DALLAS. MOVEMEHT OFEARniHG ASSETS DURIfiG 1920. so SO 25 A 2S 0 id UHITED STATES SECURITIES PURCHASED BILLS HELD O DISCOUnTED BILLS. (SEE tiOTE BELOWJ 100 TOrAL EARNIN6 ASSETS JAN. FEB. MAR. APR. MAY JUtit JULY AU6. SEPT. OCT. NOV. DEC. JL .Safitrsecured by ^ovaTutvenbTf&rOUigaUofis dticQunJbed,{br$anJt$ in&istrid;. B tJoM&qtcrdtecoajded fcrJkuOCsiri&istrict. CJoM^CscountrtStyterheid,. Digitized for FRA4S5E5R2 5°—21 37 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—Movement of principal asset and liability items during 1920. [Amounts in thousands of dollars.] 00 Discounted bills. Purchased bills. Reserve percentages. Discounted for member banks in this district. Date. e a a T s r s o n e t i t a n s l g . T he o l t d a . l c R F R o o w e e u t e d s h i n d e e t e t r i h r e s v r a - d e l A. Sec B u . red C. c m h o a P a s p r u e e k r d n e - i t n . R F c f o h e P e r t a o d s u h s e e m r e e r r - v r d a e l T he o l t d a . l se U S cu n ta r i i t t t e e i s e d s. re T s c e a o r s t v h a e l s. lep N o e s t its. n c R F i o t e e r i t c d s o e e u e s n r l r . v a i a n - e l Actual. ju A st d e - d.2 Banks.1 Total. e b r y n m Go e v n - t Percent Banks. war obli- (B-r-A). o gations. Jan. 2 9 . . 7 7 6 6 , ,6 7 5 8 9 7 5 5 7 7 ; , 3 1 4 3 2 5 - - 2 2 8 4 , , 9 3 0 5 3 0 2 3 8 2 , , 2 9 3 9 2 2 2 1 2 7 , , 2 3 5 6 9 0 6 6 1 7 . . 5 5 1 1 , , 4 2 5 2 6 1 5 5 , , 1 0 6 6 5 5 6 6 , , 6 2 2 8 1 6 1 13 3 , ,0 0 3 3 1 1 5 59 7, , 7 2 0 0 0 S 4 45 3 , , 7 9 4 8 9 0 7 74 4 , , 2 8 5 1 6 4 4 4 8 9 . . 6 3 7 7 3 7 . . 8 3 16. 81,160 62,638 -17,814 44,824 34,207 76.3 1,191 5,065 6,256 12.266 58, 795 50, 573 73,618 47.3 65.7 23. 77,919 59,562 -12,000 47,562 35,354 74.3 1.026 5,065 6,091 12; 266 56, 528 46.122 72,591 47.6 62.0 30. 75, 814 62,511 -14,950 47,561 35 526 74.7 1,037 1,037 12,266 60, 710 49; 207 71,677 50.2 62.6 Feb. 6. 77, 538 64,200 -19,341 44,859 33,584 74.9 1,072 1,072 12, 266 59,904 47.978 73,868 49. 2 65.0 13. 80,080 64,996 -21,935 43,061 32,311 75.0 1,818 1,818 13,266 61,035 5i; 190 74, 499 48.6 66.0 20. 81, 861 67,827 -22,390 45,437 33,133 72.9 1,768 1,768 12,266 61, 821 51.070 76,782 48.4 65.9 27. 85, 864 71, 848 -23, 500 48,348 35,404 73.2 1,750 1,750 12,266 59, 453 52; 428 77,089 45.9 64.0 Mar. 5 82, 459 68,403 -15,665 52,738 35,931 68.1 1,790 1,790 12,266 63,148 52,176 78,298 48.6 60.6 12. 78, 407 64,791 -14,000 50,791 34,607 68.1 1,350 1,350 12,266 60,987 45.1S9 79,126 49.1 60.3 19, 80,328 53,977 -10,300 43,677 27,544 63.1 1,085 1,085 25,266 53,275 40,499 78,641. 44. 7 53. 4 26, 69, 400 56.014 - 7,825 48,189 31,121 64.6 1,120 1,120 12, 266 61,669 39,405 77,367 52.8 59.5 Apr. 2. 82,923 69' 471 -10,000 59,471 36,971 62.2 1,186 1,186 12,266 57,819 47.160 79,396 45.7 53. 6 9. 80,170 66,066 -10,000 56,066 32,407 57.8 838 838 13,266 54,508 41,525 79,987 41.9 53.1 w 16, 82,664 69,116 ~ 5,000 61,116 37,978 59.2 1,282 1,282 12,266 53, 810 42,505 79,839 44.0 48.0 23. 89,143 75,537 - 5,000 70,537 42,023 59.6 1,340 1,340 12; 266 47,601 43,007 79,581 38. 8 42.9 o May 3 J 0 9 87 0 , . 1 7 5 8 7 6 7 75 3 , , 9 5 8 5 3 2 3 3 , , 0 0 0 0 0 0 7 78 6 , , 9 5 8 5 3 2 4 4 4 4 , , 6 5 8 1 4 2 5 5 8 6 . . 4 4 1 1 , , 9 9 6 0 8 8 1 1 , , 9 9 6 0 8 8 1 1 2 2 , , 2 2 6 6 6 6 5 5 0 3 , , 2 7 3 2 7 2 4 47 4 , , 8 0 5 2 3 6 8 7 1 9 , .9 7 0 2 6 5 4 41 0 . . 5 5 3 3 8 9 . . 1 1 87, 808 74,023 5,000 79,023 45,447 57.5 1,519 1,519 12,266 51,218 44,238 80,461 41.1 37.1 21 87.914 74,214 10,000 81,214 48,831 58.0 1,434 1,434 12,266 49,283 42, 701 80,174 40.1 32.0 28, 87,312 73,652 13,000 86,652 49,715 57.4 1,394 1,394 12, 266 50,204 41,181 82,008 40.8 30.2 June 4. 91, 501 78,210 8,000 86,210 50,801 58.9 1,025 1,025 12, 266 50,379 43,882 83,677 39. 5 33.2 11. 86, 594 73,338 15,225 88,563 49,766 56.2 990 990 12, 266 51,727 41,448 82, 584 41,7 29.4 18. 81,633 67,904 4,000 71,904 31,655 44.0 463 463 13,266 49,884 34,848 82, 454 42.5 39,1 25, 86,341 73,475 5,000 78,475 34,228 43,6 405 405 12,461 50,912 40,492 82,351 41.4 37.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 2. 86,752 73,039 9,451 82,490 34,775 42.2 405 405 13.308 52,862 42,581 82,782 42.2 34.6 9. 89, 859 76,873 11,000 87,873 37,110 42.2 6"i 5 655 12; 331 49,668 42'. S71 82, 074 39.8 30,9 86,338 72,384 16,590 88,974 35.419 39.8 680 680 13.274 49.553 39,951 81,175 40.9 2,?! 84,906 72,017 22,250 94,267 38', 155 40.5 620 620 12; 269 49,173 39,514 79,864 41.2 22! 5 30. 84,999 72,075 26,716 98,791 38,888 39.4 658 658 12,266 47,889 38,907 79,192 40.5 17.9 Aug. 6. 86; 617 73,228 27,889 101,117 39,488 38.1 1,123 1,123 12,266 46,718 38,736 79, 509 39.5 15.9 13. 84,197 71,243 30,375 101,618 39,596 39.0 688 688 12, 266 48,127 38,055 79, 202 41. 0 17.0 20. 85,602 72,654 31,278 103,932 40,599 38.1 680 6S0 12,268 47,086 38,183 79,494 40.0 14.2 27. 86,469 73,648 34,540 108,188 41,980 38.8 555 555 12,266 47,366 39,441 79.415 39.9 10.8 Sept. 3. 86,152 73,378 38,902 112, 280 43,684 38.9 508 508 12,266 48,932 38,379 81, 527 40.8 8.4 10. 87,389 74,425 39,097 113, 522 43,913 38.7 698 698 12,266 50,040 37,588 84, 567 41.0 9.0 17. 85,387 72,606 37,185 109, 791 42,298 38.5 515 515 12,266 48,500 30,427 87,950 41.0 9.6 24. 89,427 76,398 37,419 113, 817 42,909 37.7 763 763 12,266 48,786 33,714 88, 782 39. 8 10.0 Oct. 1. 87,154 74,303 37,961 112,264 43,095 38.4- 585 585 12,266 49,278 31,522 89,940 40.6 9.6 8. 90,293 77,717 34,688 112,405 42,992 38.2 310 310 12,266 54, 532 38, 454 90,947 42.1 15.9 15. 87,273 73,742 34,285 108,027 42,340 39.2 1,265 1,265 12,266 51,488 32,337 92, 042 41.4 13.8 22. 88,386 74, 750 33,944 108,694. 40,858 37.6 1,370 1,370 12,266 50,210 31,019 91,974 40.9 13.2 29. 90,987 77; 638 32,828 110,466 42,883 38.8 1,070 1,070 12,279 49,734 34,441 91,071 39.6 13.5 Nov. 5. 93,336 80,242 28,629 108, 871 43,989 40.4 815 815 12,279 51,702 39,675 90,265 39.8 17.8 12. 90, 747 77,858 27,089 104,947 41,549 39.6 610 610 12,279 54,071 41,717 87? 797 41.7 20.8 19. 86,310 73,716 27.807 101, 523 40,311 39.7 315 315 12,279 49,953 34,293 86, 584 41. 3 18.3 26. 89,634 77,140 26.600 103,740 41,236 39.7 215 215 12,279 50,181 40,118 84,464 40.3 18.9 Q f—1 Dec. 3. 85, 591 73,097 30, 563 103,660 41,618 40.1 215 215 12, 279 48,891 36,016 83,780 4.0. 8 15.3 10. 87,943 75, 449 29.808 105, 257 41, 868 39.8 215 215 12,279 48,781 40,327 81,181 40.1 15.6 17. 82,735 70,241 26,615 96,856 35,018 36.2 215 215 12,279 48,401 35,067 81, 296 41.6 18.7 23. 86,737 74,263 23,138 97,401 34,656 35.6 195 195 12,279 48.715 38,498 81,993 40.4 21.2 30. 81,411 68,885 27,711 96,596 34,028 35.2 247 247 12,279 47,632 34,612 79,474 41. 8 17.5 1 Minus sign indicates paper discounted for other Federal Reserve Banks. 2 Adjusted percentages are calculated after increasing or reducing reserves held by the amount of accommodation extended to or received from other Federal Eeserve Banks. CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

570 ANNUAL REPORT FEDERAL RESERVE BOARD. fEPEML RESERVE BAHK OF PALLAS NET DEPOSIT LIABILITY, ^ F.R.FiOTE CIRCULATION § OfSff RESERVES A/iP RESERVE RAr/0SJS20. § 30 90 \ 70 70 60 60 SO SO 10 40 30 20 20 10 10 RESERVE PERCENTAGES. ACTUALS ADJUSTED *B: SEEttOTE BELOW. /f/?. NOTE CIRCULATION 160 160 20 • DEPOSIT AIiDER.MTEUABIUTIES,±ANDTOTAL RESERVES;>C: t JAM. EEB. MAR APR. Wtt\jU!iE JULY AU6. SEPT. OCT. NOV. DEC. Jldjusted jtcrcatJbages cure calcalaJfed, after increasing or reducing reserves held? - by the ajrunuttafajcccntodatiorv extended, to <0i*Teceivedfom*athcrJi!te Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.— Volume of paper discounted and bought, [In thousands of dollars.] Discounted paper. Purchased paper. Total discounted and purchased paper. Month. Total. o b m b y S l e e i G g n c a u t o t r v w i e o e d a r n n r s - . B a a a c n n c c e k e p e s t r . - s' a a T c n r c c a e e d p s e t . - All other. Total. B a a a c n n c c k e e e p s r t . s - 3 1920 1919 1918 1917 January 83,529 76,922 157 6,450 417 417 83,946 92,140 10,708 966 February 74,720 69,093 7 5,620 1,630 1,630 76,350 93,355 12,517 2,288 March 93,492 80,004 135 149 13,204 436 436 93,928 104,925 23,987 1,060 April 107,195 88,584 100 573 17, 938 1,757 1,757 108, 952 117,861 39,650 2,264 May 111, 179 91,475 135 140 19,429 267 267 111, 446 130,703 39,334 2,926 June 117,290 /91,504 153 729 24,904 60 60 117,350 113,247 45,454 3,769 B July 109,534 75,913 347 33,274 682 682 110,216 100,214 52,244 4,605 Q August 110,783 82, 734 436 27,613 805 805 111, 588 95,139 68,294 7,939 September 124,041 90,242 181 691 32,927 532 532 124,573 118,337 76,261 9,444 October 113,553 83,891 1,111 28, 551 1,395 1,395 114,948 138,314 87,663 16,622 November 124,052 92,211 778 31,063 295 295 124,347 72,584 77,500 26,905 December 110,810 77,370 552 32,888 72 72 110, 882 60,542 79,089 8,345 Total: 1920 1,280,178 999,943 704 5,670 273,861 8,348 8,348 1919 1,224,946 1,105,060 1,887 117,999 12,415 12,415 1,237,361 1918 587,678 447,833 2,057 137, 788 25,024 25,024 612,701 1917 52,053 16,272 178 35,603 i 35,077 35,077 i 87,130 i Includes $25,333,412 of acceptances purchased from the Federal Reserve Banks of Boston and New York. Oi Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

572 AIi REPORT FEDERAL RESERVE BOARD. SCHEDULE 4.—Earnings and expenses. 1920 1919 1918 1917 EARNINGS. Bills discounted $4,044,612 $2,443,806 SI, 497,379 $209,085 Bills bought 73,'212 113,397 175,885 138;512 United States securities 270,874 229,080 152,159 163,440 Municipal warrants 7,995 6, 833 Transfers—Net earnings 3.50,969 193,681 149,733 34,027 Deficient reserve penalties (including interest). 158,569 81,984 56,305 12,968 Sundry profits 323 8,106 4,202 Bill of lading drafts 13,641 Service charges, net 28,323 383 Total I 4,904,522 3,062,251 I 2,089,526 Assessment account expenses, Federal Reserve Board.. 21,695 20,362 15,223 11,439 Federal Advisory Council 400 992 1,894 150 Governors' conferences 651 788 232 393 Federal Reserve agents' conferences 64 109 422 208 Salaries: Bank officers 117, 768 87,212 68,544 41,051 ClericalstafT 649,100 390,993 170,134 39,940 Special officers and watchmen 20,177 6,363 4,314 2,762 All others 39,456 11,883 5,464 2,981 Life insurance premiums 6,395 Directors' remunerative expense 6,530 4,447 4,442 3,522 Officers' and clerks' traveling expenses ' 30, 851 14,578 7,757 1,139 Legalfees 2,622 2,400 2,215 2,400 Rent 14,904 5,526 659 Taxes and fire insurance 3,476 1,746 1,211 1,184 Telephone , 3,938 3,189 1,883 870 Telegraph 56,900 21,772 9,668 585 Postage 65,507 39,883 24,688 3,166 ExDressage 48,488 25,556 28,843 8,424 Insurance and premium on fidelity bonds 24,672 13,308 10,774 3, Sol Light, heat, and power 6,896 3,365 2,413 1, 468 Printing andstationery 67,998 41,009 25,072 12,180 Repairs and alterations 13, 797 13,194 4,806 2, 473 All other not specified 73,080 41,348 20,278 5,029 Cost of Federal Reserve currency issued 155,736 136,576 82,730 30,911 Equipment 82,883 70, 718 41, 758 32/325 Cost of currency shipments to and from member and nonmember banks , 30,863 25,519 Depreciation, bank premises , 7,500 Total current expenses. 1,549,847 982,836 I 535,424 215,956 PROFIT AND LOSS ACCOUNT. Earnings 4,904,522 3,062>251 2,089,526 569,430 Current expenses.. 1,549,847 982,836 535, 424 215, 956 Current net earnings. 3,354,675 2,079,415 I 1,554,102 353, 474 Additions to current net earnings on account of— Amounts previously deducted from current net earnings for assessment account expenses Federal Reserve Board 16,167 All other 43 470 205,736 41,903 Total 3,370,885 2,079,885 1,759,838 395,377 Deductions from current net earnings account of— Bank premises 61,736 Vaults 11,000 Assessment account expenses, Federal Reserve Board 16,167 Premiums on United States bonds 1,407 Reserved for depreciation United States bonds 240,663 Special reserve 130,963 Allother 11,691 21,854 528" Total deductions. 142,654 38,021 313,927 1,407 Net earnings available for dividends, surplus, and franchise tax, Dec. 31... 3,228,231 2,041,864 1,445,911 393,970 Dividends paid 225,424 196,335 261,503 188, 234 Transferred to surplus fund 3,002, 807 1,845,529 11,184,408 Franchise tax paid to United States.. Profit and loss Jan. 1,1918 "205," 736 1 Includes $592,204 reserve for Gov ernment franchise tax transferred to surplus fund in 1919. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11 DALLAS. 573 SCHEDULE 5.—Currency receipts from and shipments to member and nonmember banks. Receipts. Shipments. Total, receipts. Total shipments. Month. From From non- To To nonmember member member member 1920 1919 1920 1919 banks. banks. banks. banks. January $9,735,084S1,470,896 $6,595,675 205,980 $11,710,299 $7,008,950 $2,104,108 February 5,832,196 923,357 8,540,781 755,553 6,876,183 8,883,386 3,556,432 March 10,218,643 715,466 9,996,379 934,109 5,343,083 10,058,979i 4,712,700 April 11,221,713 632,802 9,101,977 854,515 5,482,689 9,372,327 4,343,472 May 11,730,285 395,242 8,420,620 125,527 4,975,116 8,617,870 4,581,155 June 10,667,807 245,805 9,671,069 913,612 3,578,568 9,810,719 7,182,435 July 12,595,578 226,022 9,082,986 821,600 5,952,929 9,590,916 6,505,384 August 12,140,012 254,616 11,763,510 394,628 4,775, 85412,567,110 7,147,391 September 11,460,619 263,323 16,520,921 723,942 4,933,440 17,500,276 14,096,340 October 15,563,808 595,048 13,019,977 158,856 6,327,253 13,816,017 14,804,005 November 21,229,743 391,539 7,623,817 621,282 5,116,973 8,293,547 13,470,784 December 20,301,219 570,696 10,613,106 871,915 10,715,869 11,221,150 12,214,053 Total: 1920..152,696,707 6,684,812120,950,818 5,790,429159,381,519 126,741,247 1919.. 72,580,486 3,207,770 90,144,944 4,573,265 75,788,256 94,718,259 SCHEDULE 6.—Operations of check clearing and collection department. [Amounts in thousands of dollars.] Items drawn on banks in own district. Located outside Items drawn on Ite o m th s e r fo F rw ed a e r r d a e l d R t e o - Located in Federal Federal Reserve Treasurer of serve Banks and Period. Reserve Bank and Bank and branch United States. their branches. branch cities. cities. Number. Amount. Number. Amount. Number. Amount. Number. Amount. Jan. 1 to Jan. 15... 99,174 96,544 785,770 196,662 56,837 3,395 107,023 33,082 Jan.16toFeb.15.. 177,789 189,691 1,789,227 436,681 89,137 5,684 217, 097 64,482 Feb. 16 to Mar. 15. 225,515 225,779 1,787,509 454, 994 69,280 10,518 223,271 46,993 Mar. 16 to Apr. 15. 229, 776 169,602 1,767,432 375,618 117, 536 15,862 198,127 70,061 Apr. 16 to May 15. 192,077 145,378 1,750,257 320,074 151,122 9,592 156,822 74,922 May 16 to June 15. 181,396 129,252 1,923,663 325,020 84,951 7,343 131,413 72,379 June 16 to July 15. 168,699 133,249 1,920,934 302, 504 51,634 7,058 120,362 51,340 July 16 to Aug. 15. 165,378 121, 531 1,891,450 297,972 75,424 9,452 125,065 61,176 Aug. 16 to Sept. 15. 175,439 132, 059 1,927,792 323, 859 49, 547 9,721 116, 839 49,176 Sept. 16 to Oct. 15. 176, 808 167,313 2,110,731 402,285 80, 469 8,918 113, 841 85,904 Oct. 16 to Nov. 15. 188, 273 158,923 2,138,781 382,872 137,907 7,706 125, 536 82,839 Nov. 16 to Dec. 15. 191,987 136,905 2,113,139 330,718 101,633 7,555 127,261 62,623 Dec. 16 to Dec. 31. 121,956 65,285 1,114,201 153,773 79,480 4,858 67,765 32,204 Total: 1920 2,294,267 1,871,511 23,020,886 4,303,032 1,144,957 107,662 1,830,422 787,181 1919 1,150,939 1,144,256 9,591,545 2,697,699 1,264,544 157,169 1,405,493 686,844 1918 375,056 553,618 5,207,636 1,703,135 602,605 108,879 465,105 390,997 Total.i Period. 1920 1919 Number. Amount Number. Amount, Number. Amount. Jan. 1 to Jan. 15 048,804 329,683 366,810 148,465 210,342 112,730 Jan. 16 to Feb. 15.. 273,250 696,538 842,998 297,204 391,070 205,660 Feb.16toMar.15.. 305,575 738,284 837,782 261,966 374,456 187,823 Mar. 16 to Apr. 15.. 312, 871 631,143 968,607 308,133 465,352 207,395 Apr. 16 to May 15.. 250,278 549,966 891,286 327,488 395,777 181,960 May 16 to June 15.. 321,423 533,994 837,246 342,675 422,527 191,250 June 16 to July 15.. 261,629 494,151 839,621 320,624 558,084 192,370 July 16 to Aug. 15.. 257,317 490,131 944,143 338,427 583,340 203,172 Aug. 16 to Sept. 15. 269,617 514, 815 929,578 369,124 608,916 227,721 Sept. 16 to Oct. 15.. 481,849 664,420 1,195,676 376,001 707,227 288,898 Oct. 16 to Nov. 15.. 590,497 632,340 1,737,492 652,375 768,070 316,114 Nov. 16 to Dec. 15.. 534,020 537, 801 1,917,493 602,815 755,916 286,355 Dec. 16 to Dec. 31.. 383,402 256,120 1,103,789 340,671 409,325 155,181 Total: 1920 28,290,532 7,069,386 1919 13,412,521 4,685,968 1918 6,650,402 I 2,756,629 1 Exclusive of duplications on account of items handled by both parent bank and branch. 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. Summary review of the year.—The extent to which this bank has aided its members in meeting the banking requirements of the agricultural, industrial, and business activities of this Federal Reserve district is revealed in the comparative statements of its condition at the close of the years 1917-1920, inclusive. (See Schedule 1.) Holdings of bills discounted for member banks rose from $73,895,000 on December 31, 1919, to $167,598,000 on December 31, 1920, an increase of 126.8 per cent. It is significant that the increase in holdings of bills discounted for member banks was much greater during the period ending June 4 than it was during the remainder of the year, being $66,436,000 for the first period and $11,662,000 for the second, when expansion was normally to be expected on account of the fall harvesting and marketing of crops. The funds for meeting the increasing volume of rediscount applications from member banks were obtained in large part by permitting holdings of bills (bankers7 acceptances) bought m the open market to diminish steadily in amount during the first six months of the year, when they fell from $102,558,000 on December 31,1919, to $43,017,000 on June 25, a decrease of 58 per cent. Although such holdings increased gradually to $65,135,000 on September 24, they again fell off slowly until at the end of the year they stood at $46,798,000. The large increase in volume of rediscounts for member banks during the year also resulted in a lower reserve percentage at the end of the year, when it was 47.97 per cent as compared with 52.63 per cent on December 31, 1919. Actual cash reserves at the end of the year, $183,- 095,000, were but 0.78 per cent less than those on December 31, 1919, when $184,538,000 was held. Due chiefly to the addition of 46 national and 62 State bank members in 1920, and in part to additions in the capital and surplus of existing members, the paid-in capital of this bank increased from $5,749,000 at close of business on December 31, 1919, to $6,926,000 on the same day of 1920. The surplus fund was increased out of the profits of the bank for the year and on December 31, 1920, stood at $14,194,000 as compared with $7,539,000 on December 31,1919. The surplus fund is now 102.5 per cent of the subscribed capital stock of the bank. Federal Reserve notes in circulation increased from $242,461,000 on December 31, 1919, to $272,463,000 on December 31, 1920, an increase of 12.3 per cent. During the same period Federal Reserve bank notes declined in amount from $11,844^000 to $8,156,000, a decrease of 45.2 per cent. 574 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12 SAN FRANCISCO. 575 Earnings, expenses, and dividends.—The constantly growing demands of its member banks for accommodation during the year, resulting in the heaviest extension of discount operations in the bank's history, caused net earnings for the year 1920 to mount from the $5,589,000 in 1919 to $10,108,000, an increase of 80.8 per cent. These earnings, approximately 145 per cent on the paid-in capital of the bank, were distributed as follows: Dividends were paid at the rate of 6 per cent per annum for the period January 1 to December 31, 1920, amounting to $384,000; $6,654,000 was credited to surplus account, and the sum of $3,069,000 was paid to the Government as a franchise tax. Schedule 4 displays in detail the sources of income and items of expense for the year, together with the distribution of the net earnings of the year. DISCOUNT AND INVESTMENT OPERATIONS. Of a total of 831 member banks on December 31, 1920, 578, or 69.55 per cent, had discounted with this bank during the year as compared with 421, or 58.63 per cent, during the year ending December 31, 1919, out of a membership of 718 on December 31, 1919. The total number of discount offerings accepted during the year 1920 was 92,781, aggregating $2,965,647,547.68, as compared with 37,687 offerings, aggregating $1,952,570,957.68, in 1919. The increase during 1920 in the number of offerings discounted was 146.19 per cent and in the amount of such offerings the increase was 51.9 per cent. Discount rates.—Successive revisions in the schedule of the bank's discount rates during the first seven months of the year resulted in the establishment of a uniform rate of 6 per cent for all classes of paper save notes of member banks or their customers secured by United States certificates of indebtedness, on which notes the rate corresponds to the interest rate borne by the certificates pledged as collateral, with a minimum rate of 5J per cent. Classification of bill holdings.—The year's high and low levels of holdings of discounted bills secured by Government war obligations were within $20,000,000 of each other, and the amounts held January 2 and December 31, 1920, were, respectively, $42,940,000 and $51,- 546,000, an increase for the year of $8,606,000, or 20 per cent. The high level of these holdings, $59,455,000, occurred on December 10, and the low level, $40,168,000, was reached on June 18. Against this relative constancy in the amount of holdings of discounted bills secured by Government war obligations, there appeared a heavy increase in the volume of "all other" bills (representing almost entirely the notes of member banks' customers) discounted for member banks, which from $31,297,000 on January 2, 1920, rose to $116,051,- 000 on December 31, 1920, an increase of $84,754,000, or 270.8 per cent. The expansion in holdings of this class of paper began immediately after the opening of the year and continued steadily during the spring planting season with but two slight recessions, which occurred in the third week of March and the last week of May, until June 4, when the amount held was $97,733,000. The combined effect of seasonal diminution of activity during the summer months of June, July, and August and the warning against indiscriminating extension of bank credits, which emanated from the meeting of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

576 ANNUAL REPORT FEDERAL RESERVE BOARD. Federal Reserve Board, the Federal Advisory Council, and the class A directors of the 12 Reserve Banks in Washington, on May 17-18,1920, was to check further expansion during this period in holdings of these bills, and on August 27, at $105,403,000, they stood only $7,670,000 above the June 4 figure. The call for funds during the fall to harvest and market the district's large crops caused a sharp increase in the amount of bills discounted (notes of customers of member banks), and they rose to their peak level of the year on October 8 at $121,- 027,000, an increase of 286 per cent over the amount held on January 2, 1920. The crest of this demand passed, liquidation set in and continued until November 19, when $105,349,000 were held. The customary expansion during early December raised holdings to $117,416,000 on the 10th of the month, and on the last day of the year they stood $116,051,000. In response to a telegram from the Federal Reserve Board on December 14, 1920, requesting information on the subject, this bank advised the Board that the total amount of paper of all maturities rediscounted by it during the year 1919, which could be said to be based on production and sales of farm products (excluding notes secured by Government war obligations, the proceeds of which may have been used for agricultural purposes) was approximately $35,000,000, and that the same total for 1920 was estimated at $122,000,000, an increase of 253 per cent. On December 7 also this bank held 20,389 notes under rediscount, and of this total 11,584, or 57 per cent, represented loans to agricultural and live-stock interests. As of additional interest in showing the support and accommodation extended by this bank through its member banks to the agricultural and live-stock interests of the district, there are quoted herewith the results of an investigation into this subject made on September 7 of this year: Of the $162,500,000 of bills discounted held (by this bank) on September 3, 1920, $98,500,000, or 58.77 per cent, represents advances directly or indirectly in support of agricultural and live-stock interests. In addition, the bank holds $57,700,000 bills (bankers' acceptances) bought in the open market, of which $9,200,000, or 15.94 per cent, are based upon agriculture and live stock. Coincidently with the progressive increase in the amount of discounted bills neld by the bank, occurred a decline in its holdings of bills (bankers7 acceptances) purchased, which declined from their peak of $119,418,000 on January 23 to the low level of $43,017,000 on June 25, after which they rose to $65,135,000 on September 24 and again declined to $46,798,000, the amount held on December 31, 1920. This bank has bid consistently throughout the year 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 bankers7 acceptances, this bank has regularly participated pro rata in the purchase of acceptances by the Federal Reserve Bank of New York, and on occasions has also made purchases from other Federal Reserve Banks needing to replenish their reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12 SAN FRANCISCO. 577 Holdings of United States securities remained constant throughout the year, with three exceptions only, on March 19, June 18, and November 19, when they were from $7,000,000 to $15,000,000 in excess of the year's average holdings of approximately $14,000,000. The excess holdings on March 19 and June 19 represented one-day Treasury certificates bought by the bank in order to provide the Government with funds pending the receipt of the income tax instalments due on the 15th of those months. Excess holdings of oneday certificates on November 19 followed an excess of redemptions by this bank of an issue of certificates of indebtedness maturing November 15 over receipts by it from another issue put out on the same date. In Schedule 2 appears a detailed statistical record of the movement of the aforementioned and other principal asset and liability items during the calendar year 1920. CURRENCY ISSUES. The amount of Federal Reserve notes of this bank in circulation continued, as in 1919, to contract and expand with the varying needs for actual currency required for cash settlements in the business and commerce of the district. The shrinkage in the volume of business transactions which occurs after the first of the year, due primarily to the contraction in retail trade with the end of the holidays, the conclusion of periodical payments of interest, rents, and taxes, the curtailment of activity attendant upon inventory taking, and, ordinarily, the completion of the major portion of the marketing of the crops, became apparent in the first week of January, 1920. The volume of transactions settled in cash declined correspondingly and by February 20 the amount of notes in circulation had decreased, from $242,770,000 on January 2, 1920, to $222,616,000 (a contraction of over 8 per cent), at approximately which level they remained until April 23, when the spring activity in fruit and other agricultural pursuits occurred. A steady expansion then followed, until on July 9 the circulation was $244,971,- 000. With the passing of the mid-year settlements, the need for currency diminished and contraction again occurred for two weeks. The amount of notes outstanding then varied little until September, when the increasing number and volume of the agricultural and business activities of the fall caused a renewed demand for currency which was reflected in a steady increase in circulation of notes, persisting, with slight recessions at the end of each month until the end of the year, when it stood at $272,463,000, an increase of 12.3 per cent over the circulation on December 31, 1919. The peak of the year occurred on December 24, 1920, when the volume of notes outstanding was $273,849,000. This bank pays the cost of all shipments of currency, both to member banks and from them. It maintains the convertibility of the Federal Keserve notes by redeeming in gold upon presentation the notes of any Reserve Bank. Although legally the Federal Reserve note is redeemable at the Reserve Banks in lawful money (gold, gold certificates, silver, silver certificates, and greenbacks), in practice notes presented over the counter for redemption are redeemed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

578 ANNUAL REPORT FEDERAL RESERVE BOARD. in gold, because other kinds of lawful money are very largely in circulation in the pockets of the people. Of the $508,178,516 of silver certificates and United States notes (greenbacks) outstanding on October 30, 1920, $442,428,852, or 87 per cent of the total, was in denominations of $1, $2, and $5, and therefore very largely in the pockets of the people, so that gold (and gold certificates) is the only form of lawful money available in the Federal Reserve Banks for the redemption of Federal Reserve notes. The circulation of Federal Reserve Bank notes (secured by Government obligations) decreased in volume during the year from $11,844,000 on December 31, 1919, to $8,156,000 on December 31, 1920, or 31.1 per cent. These are chiefly in $1 and $2 denominations, issued to avoid the inconvenience which would have followed the withdrawal from circulation of silver dollars and silver certificates to provide silver bullion for shipment to the Orient during the war. RESERVE MOVEMENT DURING THE YEAR. The percentage of the total cash reserves of the bank to its combined deposit and Federal Reserve note liabilities varied during the year according to the demand for accommodation from member banks and to the volume of bills (bankersJ acceptances) purchased by the bank in the open market. Its high points were around the 1st of January and the end of June, of July, and of December, and the low points were reached about the 1st of February, the middle of April, amd the 1st of October. The high point of 52.6 per cent on January 2 was not again reached during the year, and on December 31, 1920, it stood at 47.9 per cent. The low point, 40.3 per cent, was touched twice; once on January 30 and again on September 24. At all times during the year the bank maintained a secondary reserve, consisting of open market purchases of acceptances and bills, the high and low points of which were on January 23 and June 25, respectively, when holdings were $119,418,000 and $43,017,000. On December 31, 1920, they stood at $46,798,000. In Schedule 2 appear figures showing the actual cash reserves and the reserve percentages by weeks throughout the year. FISCAL AGENCY OPERATIONS. The Victory loan of April 21, 1919, for $4,498,000,000 was the last Government war loan offered for popular subscription, but the Government has continued to sell during 1920 Treasury certificates of indebtedness with maturities of from 6 weeks to 12 months and rates of from 4^ to 6 per cent, the offerings since June 15, 1920, having been at 5f and 6 per cent for 6 and 12 months maturities, respectively. The distribution of these offerings has been made through the Federal Reserve Banks as fiscal agents of the United States Government, and the total amount of subscriptions received by this bank and certificates allotted during the year was $261,569,000. On December 31, 1920, maturities aggregating $162,592,000 were still outstanding, $98,977,000 having matured in the course of the year. It is significant and gratifying to note that 307 individuals subscribed to the issue dated December 15, 1920, as against 40 to the issue dated January 2, 1920, although the latter issue was more than 50 per cent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12—SAN FRANCISCO. 579 larger. This increasing participation by individual subscribers releases by so much the resources of the banks of the district for the service of the agricultural, commercial, and industrial needs of the community. Deposits of Treasury funds with banks.—The Treasury Department has continued during 1920 the plan of depositing, until required, the proceeds of sales of certificates of indebtedness in qualified depositary banks. The Federal Reserve Bank has appointed the depositaries and has had the responsibility of receiving and approving the collateral furnished by depositary banks, depositing and withdrawing funds, and collecting interest on deposits, all such operations being under the direction and supervision of the Treasury Department. Qualified depositary banks may, under the law, pay for certificates of indebtedness by opening book credits in favor of the Federal Reserve Bank of San Francisco as fiscal agent of the United States, "war loan deposit account.7' As the funds represented by these deposits are withdrawn by the Government only as and when they are needed for payments, disturbances in the money market incident to Government financing have been negligible. These deposits have been withdrawn on a pro rata basis upon instructions from the Treasury Department, and wherever possible notice of 48 hours or more has been given. The number of banks in this district acting as such depositaries during 1920 was 226. On January 19, 1920, the amount of deposits outstanding with depositaries was at its peak at $18,257,302.06. The total amount of deposits made with depositaries during the year was $155,443,696.43, of which there remained outstanding on December 31 the sum of $10,672,274. Sales of war savings stamps.—The publicity work in connection with the war savings campaign has continued during 1920 under a socalled "War loan organization," which is under the general supervision of the Governor of the Federal Reserve Bank as chairman of the Twelfth Federal Reserve District Government savings organization. Sales during 1920 of war savings stamps and certificates showed a marked decrease as compared with the results obtained in 1919. Following are comparative figures: 1920 1919 Sale of thrift stamps $48,661.25 $126,993.00 Sale of war savings stamps 460,770.00 1,538,550.00 Sale of Treasury savings certificates 365,300.00 1,428,400.00 Filled thrift cards exchanged for war savings certificate stamps 62.960.00 188,740.00 War savingscertificates exchanged for Treasury savings certificates 1,100.00 7,400.00 Redemption of war savings stamps from February 18, 1920, to December 27, 1920, amounted to $5,076,167.08. Conversions and exchange of United States bonds.—One of the chief functions of this bank as fiscal agent of the Government during the year 1920 has been the exchange of temporary for definitive Liberty loan bonds. The scope of this activity is revealed by the number of pieces handled during the year, which in the single operation of receiving for and delivering on exchange, transfer, and registration, totaled 2,746,015. In addition, the bank, as fiscal agent, has handled the conversions of one issue of bonds into another which involved handling 784,667 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

580 ANNUAL REPORT FEDERAL RESERVE BOARD. pieces. United States Government bond and certificate coupons to the number of 5,313,675 were paid. It was necessary, during the year to increase by 54, or 42 per cent, the number of employees in this department; whose personnel now numbers 183, approximately the same number it contained during the height of the Government's war financing in 1918. Exchanges of temporary bonds for fourthloan permanent bonds will commence about the middle of January and this will conclude exchanges of temporary bonds for permanent bonds, inasmuch as victory loan notes, the last of the popular loans sold for financing the war, were issued in permanent form. CLEARINGS AND COLLECTIONS SERVICE. The year 1920 has witnessed an increasing use by the banking community of the clearings and collections service of this bank, and during the year ending December 31, 1920, 463 banks availed themselves of the clearing and collection facilities, an increase of 35.3 per cent over the number (343) which had used it during the year ending December 31, 1919- Between January and December, 1920, the daily average number of checks handled by this bank and its branches increased from 75,560, aggregating $23,922,000, to 136,430, aggregating $32^200,000. These figures do not take into consideration the checks routed by member banks in this district direct to other Federal Reserve feanks and branches. Some conception of the magnitude of the operations of this department of the bank may be gathered from the total number of items handled during the year, which was 27,314,000 in 1920 as compared with 13,796,000 items in 1919 and 8,001,000 in 1918. The total amount of the items handled during these three years was $8,061,091,000 in 1920, $6,672,057,000 in 1919, and $5,058,223,000 in 1918. Items for clearance or collection are received from all member and clearing nonmember banks in this district and from other Federal Reserve Banks, and forwarded to the drawee banks, whose accounts with the Reserve Bank are charged upon advice from the drawee bank of receipt of these items. Credit is given to the depositing bank in accordance with a time schedule based upon the number of days required for collection. Items on banks which are not members of the clearing and collection service of this bank are presented to them for payment, which may, in their option, be paid by check upon one of their correspondents in a Reserve Bank or branch city, or by shipment of currency at the expense of this bank. On December 15, 1920, there were 832 member banks and 1,028 nonmember banks in this district. Checks on all of these banks are collected at par by the Federal Reserve Bank, and the service is rendered without charge. Gold settlement fund.—Settlements between all Federal Reserve Banks are made daily through the gold deposit which each Federal Reserve Bank maintains with the Federal Reserve Board in Washington for this purpose, and in this way the movement of gold from one section of the country to another is avoided. During the year payments by this bank to other Federal Reserve Banks aggregating $2,924,829,000 and payments by them to this bank amounting to $3,062,588,000 (a total of $5,987,417,000) were made through the gold settlement fund. The excess of payments due to this bank, namely, $137,759,000, was but 2.3 per cent of the total transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTKICT NO. 12 SAN FRANCISCO. 581 Direct telegraphic transfers.—The daily settlements previously described are facilitated by the interconnection of all Reserve Banks and branches over the Federal Reserve leased wire system. By means of this system member banks are enabled to make speedy transfer of funds to all Federal Reserve Bank and branch cities without charge. During January, 1920, this bank and its branches handled 3,178 telegraphic transfers to and from member banks for $334,915,000. During December, 1920, 5,424 of such transfers, involving $400,- 353,000 were handled. During the year 29,291 telegraphic transfers amounting to $3,043,193,000 were thus handled for banks which were members of the clearing system without charge to them. These are exclusive of transfers for account of the Treasurer of the United States. OPERATIONS OF BRANCHES. The fifth branch of this bank was opened in Los Angeles, Calif., on January 2, 1920, the territory assigned to it being southern California and that part of Arizona located in the Twelfth Federal Reserve District. In addition to the one in Los Angeles, branches of this bank are now located at Spokane and Seattle, Wash.; Portland, Oreg., and Salt Lake City, Utah, the order of naming the last four being that of their establishment. MEMBER BANK RELATIONS. Movement of membership.—During the past year there were organized 46 new national banks with combined capital of $3,140,000, as compared with 30 new banks having capital of $1,465,000 in 1919; 15 State banks, with capital of $1,225,000, were converted into national banks, as compared with 14 having capital of $1,380,000 in 1919, and 15 national banks, with capital of $4,265,000, were liquidated or consolidated with other banks (of which four were national banks and eight State banks), as compared with four with capital of $475,000 in 1919. There was therefore a net increase of 46 national bank members during the year. In addition to this, national banks have increased their capital by $5,043,000, the net increase in capital of national bank members, therefore, amounting to $6,108,000. The number of State bank members in this district increased from 137 with capital of $31,514,000 on December 31, 1919, to 199 with capital of $42,023,000 on December 31, 1920, an increase of 62 banks with capital of $10,509,000. In addition, applications for membership from 14 State banks with combined capital of $4,263,000 are now pending. Fiduciary powers.—During 1920, 14 national banks, with capital and surplus of $5,930,000 and resources of $70,159,000, made original application for permission to exercise some or all of the fiduciary powers permitted in the amendment to the Federal Reserve Act of September 26, 1918, and two national banks with capital and surplus of $1,050,000 and resources of $14,466,000, having previously been granted authority to exercise limited powers, made application for permission to exercise additional powers. The number applying in 1919 was 31, with capital and surplus of $16,774,000 and resources of $238,930,000, and on December 31, 1919, two of these applications Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

582 ANNUAL, REPORT FEDERAL RESERVE BOARD. were still pending, one being subsequently granted and the other refused. Of the applications received in 1920, 14 were granted, none were refused, and two were pending on December 31, 1920. EXAMINATIONS. An increase of 45 per cent during the year in the number of State bank members has correspondingly increased the work of the examining division. That this additional work could be handled, as it has been, without any increase in the number of the bank's field examiners has been due largely to the assistance and hearty cooperation of the various State Thanking departments. It has been considered desirable to make independent examinations of all State banks applying for membership, and with but two exceptions this policy has oeen followed throughout the year. With few exceptions all State bank members have been examined by Reserve Bank examiners during the year, either independently or jointly with State examiners. Where the latter procedure has been followed, the Reserve Bank examiners have made independent reports. Through arrangements made with the various State banking departments, this bank is furnished with certified copies of all their reports made in connection with examinations of State bank members, and it is thus assured of at least one examination report for each bank every calendar year, while in some instances it may receive as many as three separate reports, two by State examiners and one by Federal Reserve examiners. Of the 67 State banks admitted to membership in the district during the year, 58 were previously examined by the Federal Reserve examiners, two were accepted on reports of examinations made by State authorities, and seven admitted without examination, concurrently with the issuance of their charters. The following table shows the number and character of examinations conducted during the year, as compared with the year 1919: 1920 1919 State banks for admission, j ointly with State authorities State banks for admission, independently State bank members,] ointly with State authorities State bank members,independently Nationalbanks, j ointly with nationalexaminers National banks, independently Totalnuniber of examinations conducted Independent examinations Joint examinations Relations with State banking departments.—Relations with the banking departments of the seven States comprising this district continue to be of a most cordial nature. Commissioners and superintendents and their examiners have generously cooperated with the Federal Reserve Bank and its examining stan. With the written consent of the State bank members, given at the time of admission, reports and other information are freely exchanged with the State authorities, who have always shown a willingness to support this bank in criticisms offered and in securing adjustments desired. With the view of fostering a still closer relationship between the Federal Reserve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12 SAN FRANCISCO. 583 Bank and the State banking departments, invitations were extended to the bank commissioners and superintendents of the various States of the district, to meet with the officers and examiners of this bank in San Francisco on November 18, 1920. All save one attended, and a most interesting and beneficial conference was continued during two days, in which discussion was had of various matters of mutual interest to the State banking departments and the Federal Reserve Bank. Similar conferences each year are contemplated TRANSFER OF SUBTREASURY FUNCTIONS TO FEDERAL RESERVE BANK. On December 21, 1920, in accordance with the provisions of the act of Congress approved May 29, 1920, the Federal Reserve Bank assumed the following functions previously exercised by the subtreasury of the United States in San Francisco, the first two of which had previously been exercised in part by this bank: The receipt of public moneys from Government depositary officers. The payment of Government warrants and checks for disbursing officers. The exchange, replacement, and redemption of United States paper currency. The exchange and redemption of United States coin. Operations incident to the redemption of currency will continue to be handled at the subtreasury, located at the southwest corner of Pine and Sansome Streets. The rest of the functions above listed will henceforth be performed at the Federal Reserve Bank, 315 Battery Street. The quarters in the subtreasury building assigned to the Federal Reserve Bank will be used for the storage of United States coin, currency, temporary and permanent bonds, and for the housing of approximately 105 of its employees engaged in the custody and delivery of definitive bonds, the custody and shipment of temporary bonds and bond coupons, and the custody and redemption of currency. The bank has taken over, on a temporary basis for a period not exceeding one year, the subtreasury staff consisting of 10 persons acting in a clerical capacity, 6 guards and watchmen, and 4 maintenance employees, a total of 20. BANK QUARTERS. The end of the year finds actual work begun on the excavation for the bank's new building, which is to occupy the site owned by this bank, 119 feet 6 inches by 275 feet and bounded by Sansome, Sacramento, Battery, and Commercial Streets. All of the old buildings on the property have been razea except the six-story building 73 by 104 feet at present occupied by the bank, around which the new building will be constructed. When space in the latter is ready for occupancy the old building will then be razed and the new structure completed. In addition to the building mentioned and practically the entire subtreasury building, the second and fourth floors and part of the basement of the building at 440 Sansome Street (approximately 15,000 square feet of floor space) are occupied by the bank. The branches occupy rented quarters. <15525°—21 38 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

584 ANNUAL REPORT FEDERAL RESERVE BOARD. INTERNAL ORGANIZATION. Constant and rapid enlargement during the year in the scope of the bank's operations has necessitated a considerably more numerous personnel. Although the increase in the number of officers is slight, from 27 on December 31, 1919, to 32 on December 31, 1920, the total number of employees increased from 567 to 1,132. Four-fifths of this increase in personnel occurred in three departments, 253 having been added to the banking department. 150 to the transit department and 54 to the fiscal agency department. In the banking department the increase during the year in the number of discount offerings handled, which rose from 37,687 in 1919 to 92,781 in 1920, was chiefly responsible for the expansion of the personnel from 36 to 109; in the transit department the number of employees rose from 100 to 250, largely on account of the increase of 97 per cent in the number of clearing and collection items handled, the total having risen from 13,796,000 in 1919 to 27,314,000 in 1920. Transactions involving the sale, exchange, conversion, registration, and payment of different classes of Government obligations (Treasury certificates, Liberty loan bonds, bond coupons, and war savings securities) caused the personnel of the fiscal agency department to grow from 129 to 183 during the year. Transactions involving only the exchange of temporary for definitive bonds have more than filled the place of those incident to the flotation of the Victory loan of 1919. Of the 1,132 members of the bank's staff on December 31, 1920, 507 were women and 627 were men. The average annual salary of the officers was $5,720, and of the employees $1,358. The net increase of the official staff was as follows: Two branch managers to relieve the two assistant deputy governors who were temporarily acting as branch managers; four assistant cashiers at head office, and one assistant cashier at Salt Lake City branch. REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS. Agriculture.—Another year of exceptionally good crops has paved the way for continued sound business conditions in this largely agricultural district. Yields of all of the principal crops compare favorably with the record yields of last year, smaller crops of some of the grains and fruits being offset by larger yields of oats, hay, cotton, sugar beets, potatoes, hops, oranges and lemons. Prices received by the growers have averaged lower than last year, although higher prices compensated the fruit men for short crops of peaches and pears, and the grape growers received for their product by far the highest prices in the history of the industry. Some depression has been felt in the wool, cotton, and rice-producing communities because of the slackened demand for these commodities. Live stock.—The live-stock year in the stock-raising sections of the district was inaugurated under unfavorable conditions. A severe winter forced the stockmen to begin feeding early, and feed prices were abnormally high compared to later prices for the fed stock. However, the last months of the year have offered encouragement to the industry, as hay prices have been lower, pasture is abundant, and the winter has been late. Mining.—With the exception of gold, the output of the five principal metals mined in the Twelfth Federal Reserve District Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12 SAN FRANCISCO. 585 during the year 1920 (gold, silver, copper, lead, and zinc) is in excess of the 1919 output, although in each case below the figures of 1918. Reports from all parts of the district affirm that high costs of mining, milling, smelting and refining, are retarding the recovery of the mining industry. Gold.—The world-wide depression in the gold-mining industry, induced by the rising commodity prices and consequently the smaller amount of goods and services obtainable for an ounce of gold throughout the world, has been reflected in this district by a continued decline in the value of the gold output in the past three years. The production for 1920, $25,700,800, is approximately $4,000,000 less than in the preceding year and $8,000,000 less than in 1918. The 1920 production would have been less had it depended upon the output of mines producing gold only. It has been augmented by the addition of gold extracted from ores which were mined principally for their copper and silver content. This fact accounts for the slightly increased production in Arizona during the past year. In California there has been an unprecedented closing down of gold mines, especially in the Mother Lode district, due not only to the decrease in the purchasing power of gold but to restrictions of hydroelectric power on account of the succession of dry years, and to high costs of labor. It is significant that only 52 per cent of the State's production of gold now comes from lode mines, and that 48 per cent comes from dredges and other placer operations. About 68 per cent of the gold output came from lode mines in 1915, 54.9 per cent in 1910, and 68.9 per cent in 1905. Silver.—High prices for silver prevailing until the late spring of this year, followed by the standard price of $1 per ounce at which the Government buys domestic silver under the terms of the Pittman Act, combined to raise the production of silver during 1920 above the level of 1919. With the exception of Utah, the largest producing State of the district, where the production remained practically constant, the output of silver in the other four principal producing States, Nevada, Idaho, Arizona, and California, was in excess of the 1919 figures. Total production for the district was 34,332,592 fine ounces as compared with 31,005,592 fine ounces in 1919 and 41,159,815 fine ounces in 1918. In Arizona, as is the case with gold, the largest producers of silver are the copper mines. In California the increase came chiefly from the lead and lead-silver ores in southern California. Copper.—The rapid fall in the market price of copper during the last quarter of 1920 resulted, in the closing of many of the largest producing mines in this district and prevented the realization of the hope entertained earlier in the year that the production of 1920 would substantially exceed that of 1919. The year closed with an estimated production of 751,857,702 pounds as against 725,985,370 pounds in 1919 and 1,166,611,024 pounds in 1918. Of the States in this district producing copper in large quantities (Arizona, Utah, Nevada, and California) production fell off in Utah and California and increased in Arizona and Nevada. Lead.—By far the largest portion of the lead mined in this district comes from the States of Idaho and Utah, Idaho alone producing over one-half the district's output for the year. In this State there Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

586 ANNUAL REPORT FEDERAL RESERVE BOARD. was a substantial increase in production during 1920 but it is still considered below normal. The production of lead showed a greater percentage of increase during the year than did that of any of the other principal metals. Production for 1920 was 432,322,000 pounds as compared with 333,964,161 pounds in 1919 and 516,178,913 pounds in 1918. Zinc.—Practically all the zinc mined in this district during 1920 came from the States of Idaho and Utah, the former producing 28,309,000 pounds and the latter 6,000,000 pounds. Each of these States record increased production for the year 1920, the increase being over 90 per cent in Idaho. It should be noted that figures for Nevada are not now available and these would further swell the production of this metal. Petroleum.—During the first 11 months of 1920, the production of petroleum in Calif orniawas95,785,328barrels, which is slightly in excess of the previous record production for the same period, made in the year 1914. Shipments up to November 30, 1920, aggregated 103,683,347 barrels andstored stocks decreased from 30.480,320 barrels on December 31, 1919, to 22,582,304 barrels on November 30, 1920. A shortage of gasoline throughout the district first became apparent in June and lasted until the latter part of August. During this period gasoline was rationed in California, Oregon, and Washington, the preference being given to agricultural and industrial demands. Lumber.—Lumber production has been below normal throughout the year, due chiefly to a shortage of cars, which lasted through July and caused the mills to restrict the acceptance of orders so that production was automatically curtailed. The car shortage ceased to exist in August, as far as the lumber industry was concerned, due to the decreased demand for lumber. An additional factor in decreased production was the application of the new railroad freight rates, which increased the spread in cents per 100 pounds, that previously existed between southern and western lumber in northern and eastern markets and production has continued to decline, abetted by the usual seasonal curtailment in the winter months. Building.—Building activity during the year 1920 was greater both in value and number of operations than in 1919. The value of the permits issued in the 20 principal cities of the district during the year was $176,874,000 as compared with $100,234,000 in 1919 and $57,310,000 in 1918. This increased activity was chiefly noticeable in southern California, particularly in Los Angeles, where the value of permits issued during 1920 ($60,005,000) was $36,270,000 in excess of the value of permits issued in 1919 ($23,735,000), an increase of 152.8 per cent. Bank clearings.—Bank clearings during the past year were maintained at approximately the high level reached in December, 1919, and clearings each month have been larger than during the corresponding month in 1919. Money rates.—Money rates in industrial centers of this district advanced during the first half of the year from 6 per cent to 6^ to 8 per cent, and have been firm at the latter figures during the last six months of 1920. In agricultural sections the prevailing rate has been 8 per cent throughout the year. Business failures.—From February to May and again in the mpnth of October, there were noticeable increases in the number of business Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12—SAN FRANCISCO. 587 failures in the district. The amount of liabilities has fluctuated sharply, reaching a high mark for the year, in June, immediately following the low mark for the year, set in May. Retail trade.—Reports from an average of 30 representative department stores in the principal cities of the district show that retail sales during the first 11 months of 192p have ranged from 8.2 per cent to 51.7 per cent in excess of those in the corresponding months in 1919. However, this excess has been decreasing steadily since May, 1920, when it was 31.1 per cent, reaching the low point for the year (8.2 per cent) in October and rallying slightly to 11.3 per cent m November. Wholesale trade.—Returns covering the first 11 months of the year indicate that net sales in the wholesale trade of the district for 1920 will be greater than they were during 1919. Reports from approximately 120 representative firms in the seven lines of business (hardware, dry goods, groceries, drugs, shoes, furniture and stationery) indicate a generally increasing activity during the first quarter of 1920 when net sales in all lines were substantially in excess of those of corresponding months in 1919. In the months of April and May, however, this expansion of activity appeared to be checked and immediately afterward a gradual decline was apparent from the smaller percentages of increase in net sales reported each month as compared with the same month of 1919. While monthly sales continued larger than those of the same months of the year previous, the excess diminished steadily until October when all lines save drugs and stationery reported that their sales were less than those of October, 1919. This experience was duplicated in the month of November. Imports and exports.—Exports from Pacific cpast ports in the first 10 months of 1920 were 9.8 per cent less than in the same period in 1919 and imports remained practically the same. The decreased exports are directly accounted for by the reduced foreign commerce of the Washington customs district of which Seattle is the chief port. The business and trade depression in the Orient during the spring and the return of world shipping to pre-war trade routes, utilizing the Suez and Panama Canals, apparently had a marked influence on the foreign commerce of the Washington district and its exports decreased 31.5 per cent during the first 10 months of 1920 compared with the same period in 1919. All other Pacific coast ports report increased exports during the same period. Car shortage.—The shortage of freight cars, brought on by the lack of new construction and repairs during the war, and by labor troubles on many railroads during the early part of 1920, reached its peak in this district during the crop-moving season of 1920 and then rapidly fell away until in December it had disappeared and the committees on car service at San Francisco, Portland, and Seattle were disbanded. During the early months of the year the lumber industry of the Pacific Northwest was seriously affected. In July and August some difficulty was encountered in the grain-shipping sections of the intermountain region and a serious shortage occurred in California, especially in the grape-shipping centers during the late summer and fall. Trade throughout the district was also hampered, due to the length of time required for shipments from eastern manufacturing districts to reach this coast. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

588 ANNUAL KEPORT FEDERAL RESERVE BOARD. Labor.—Unemployment throughout the district during the first two months of 1920 was considerably less than for the same period in 1919, and by the middle of March the number of laborers, especially in the agricultural regions, was generally reported as insufficient to meet the demand. Labor continued fully employed at high wages during the summer. The completion of the fall harvests, the diminution of activity in the lumbering and ship-building industries and in the wholesale trade, and the cessation of highway and construction work, with the approach of winter, caused more than the customary unemployment in this district in the late fall. At the close of 1920, unemployment was reported slightly in excess of normal, and appeared to be increasing. The general trend of wages during the early part of the year was upward, but this tendency ceased in the early fall, about the time announcements were made of reductions in the prices of various commodities and in the wages of eastern mill operatives. There have been no strikes or labor disturbances of consequence in this district this year, although there was considerable unrest during the spring and early summer months. SCHEDULE 1.—-Comparative statement of condition on Dec. 31. 1920 1919 1918 1917 RESOURCES. Gold and gold certificates $28,628,893 $13,353,315 $12,191,500 $26,441,085 Gold settlement fund—Federal Reserve Board.. 23,723,928 27,109,565 11,056,184 17,672,000 Gold with foreign agencies 151, 800 6,040,730 320,588 2,887,500 Total gold held by bank 52,504,621 46,503,610 23,568,272 47,000,585 Gold with Federal Reserve Agent. 119,060,070 129,050,435 125,614,335 46,993,550 Gold redemption fund 10,368,659 8,638,655 1,789,405 24,335 Total gold reserves 181,933,350 184,192.700 150,972,012 94,018,470 1,16), 756 345,882 518,639 408|822 Legaltender notes, silver, etc. Total reserves 183,095,106 184,538,582 151,490,651 94,427,292 Bills discounted: Secured by Government war obligations... 51,546,009 43,551,373 45,024,583 2,498,352 All other 116,051,995 30,344,585 33,734,845 23,281,849 Bills bought in open market 46,798,233 102,558,191 36,279,727 17,082,456 Total bills on hand 214,396,237 176,454,149 115,039,155 42,862,657 United States Government bonds 2,087,450 2,032,450 2,460,950 2,455,000 United States certificates of indebtedness ll,030,5C0 11,843,500 5,724,000 1,500,000 Total earning assets. 227,514,187 190,930,0 123,224,105 46, 817,657 Bank premises 253,004 231,375 400,000 120,000 Uncollected items and other deductions from gross deposits 48,101,597 54,273,206 44,671,524 18,715,508 5 percent redemption fund against Federal Reserve Bank notes 665,000 665,000 356,400 All other resources 1,347,068 367,595 1,301,065 797,919 Total resources 460,975,962 431,005,857 321,443,745 160,878,436 LIABILITIES. Capital paid in 6,926,600 5,749,750 4,636,550 4,162,450 Surplus 14,194,228 7,539,374 1,224,088 Government deposits 5,882,929 3,672,894 410,992 12,353,939 Due to members—reserve account 114,452,434 117,929,882 73,235,715 63,779,910 Deferred availability items 33,712,886 34,771,861 17,265,669 7,545,551 Other deposits, including foreign Government credits 3,900,869 6,071,291 4,454,016 4,970,911 Total gross deposits 157,955,118 162,445,928 95 366,392 88,650,311 Federal Reserve notes in actualcirculation 272,463,350 242,461,760 212,244,625 67,744,305 Federal Reserve Banknotes incirculation—net liability 8,156,817 11,844,905 6,252,055 All other liabilities 1,279,849 964,140 1,720,035 321,370 Total liabilities.. 460,975,962 431,005,857 321,443,745 160,878,436 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12 SAST FRANCISCO. FEDERALRESERVE BANKOF<SAtl FRANCISCO MOVEMEIHTOF* EARN I NOASSETS DURING 1920, so 25 SsSss ssssSs s^ssss UNITED STATES SECURITIES u o 25 PURCHASED BILLS MELD 20 PERCENTAGE OF WAR PAPER TO TOTAL DISCOUNTS FOR BAHKSIti DISTRICT, 200 200 IPS 25 25 DISCOUNTED BILLS. (SEE NOTEBELOfVJ TOTAL EARNIN6 ASSETS JAN. FEB. MAR. APR, MAY JUNE JULY AUG SEPT OCT. NO/. DEC. (bl ToFaT^npr6^-by G?v5"lm£nt waF obligations discounted for banks in district. y< mil PaPer discounted for banks in district. (c) Total discounted paper held. Space between lines (b) and (c) represents paper discounted for other Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—Movement of principal asset and liability items during 1920. o [Amounts in thousands of dollars.] Discounted bills. Purchased bills. Reserve percentages. Discounted for member banks in this district. Federal Total Dis- Pur- United Total Reserve Date. e a a s r s n e i t n s g . T he o l t d a . l c R F o o e e u f t d s o h n e e r e t r r e v r a d e l A. Sec B u . red C. c m h o a P a s p r u e e k r d n - e i t n . R F c o h e f e r t d s a o h e s e m e r e r r v d a e l T he o l t d a . l se S cu ta ri t t e ie s s, res c e a r s v h es. dep N o e s t its. n c o i t r i t c o e u s n l . a in - Actual. Ad e j d u . s 2 t- Banks. Total. w e b r y a n r m G o o e b v n li - t - ( P B e - r f c -A en ). t Banks.1 gations. Jan. 2 191,776 74,237 74,237 42,940 57.8 89,384 13,679 103,063 14,476 185,305 109,408 242,770 52.6 56.5 9 203,758 79,906 79,906 48,921 61.2 107,098 2,441 109,539 14,313 167,999 106,691 239,843 48.5 49.2 16 216,300 91,957 10,000 81,957 45,357 55.3 109,287 406 109,693 14,650 159,135 115,888 234,144 45.5 48.4 23 217,366 82,750 82,750 45,940 55.5 115, 838 3,580 119,418 15,198 153,191 115,757 229,131 44.4 45.5 30 224,787 90,534 90,534 49,091 54.2 115,848 3,408 119, 256 14,997 134,553 107,273 226,363 40.3 41.3 Feb. 6 221,875 96,015 96,015 51,432 53.6 108,405 3,408 111, 813 14,047 140, 824 113,398 223,578 41.8 42.8 13 216,911 98,600 98,600 52,423 53.2 98,915 3,408 102,323 15,988 145, 266 111, 257 224,974 43.2 44.2 20 208,676 100,374 100,374 51,351 51.1 90,687 3,408 94,095 14,207 148,435 108,766 222,616 44.8 45.8 27 208,650 107,584 107,584 56,482 52.5 83,845 3,408 87,253 13,813 146,838 106,134 223,514 44.5 45.6 Mar. 5 212,120 114,566 114,566 51,350 44.8 80,633 3,408 84,041 13,513 144,419 106,835 224,455 43.6 44.6 12 210,596 116,203 116,203 52,951 45.6 77,472 3,408 80,880 13,513 154,649 115,312 224,805 45.5 46.5 19 210,134 98,601 98,601 40,579 41.2 69,612 3,408 73,020 38,513 150,025 110,792 224,583 44.7 45.5 26 192,398 111,878 5,000 106,878 44,095 41.3 64,926 2,081 67,007 13,513 166,954 111, 931 222,455 49.9 52.0 Apr. 2... 208,607 125,413 11,760 113,653 46,507 40.9 64,340 4,341 68,681 14,513 152,914 113,578 222,986 45.4 60.2 9 218,183 123,421 7,809 115,612 46,550 40.3 76,878 2,371 79,249 15,513 145,781 117,300 221,947 43.0 46.0 16 218,410 119,104 119,104 49,262 41.4 83,422 2,371 85,793 13,513 148,369 119,431 222,353 43.4 44.1 23 221,175 121,573 121,573 50,900 41.9 83,718 2,371 86,089 13,513 135,600 109,897 222,093 40.8 41.6 30 219,983 131,740 131,740 52,821 40.1 82,417 -7,687 74,730 13,513 142,884 109,723 227,529 42.4 40.1 May 7 226,577 140,351 140,351 55,179 39.3 78,183 -5,470 72,713 13,513 141,988 112,915 229,865 41.4 39.8 14 229,083 143,167 143,167 56,296 39.3 74,037 -1,634 72,403 13,513 147,635 121,882 228,602 42.1 41.7 21 231,024 147,259 147,259 56,858 38.6 68,029 2,148 70,177 13,588 143,912 119,810 228,711 41.3 41.9 28 223,760 147,086 147,086 58,227 39.6 60,435 2,371 62,806 13,868 144,249 112,329 229,286 42.2 42.9 June 4 229,881 155,936 155,936 58,203 37.3 57,416 2,371 59,787 14,158 147,935 117,679 233,311 42.1 42.8 11 214,416 147,786 147,786 55,667 37.7 50,251 2,371 52,622 14,008 162,975 118,007 232,438 46.5 47.2 18 194,859 127,614 127,614 40,168 31.5 42,108 1,355 43,463 23,782 172,874 105,300 235,406 50.7 51.1 25 194,542 137,688 137,688 42,225 30.7 42,625 392 43,017 13,837 181,408 114,494 234,155 52.0 52.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 2.. 209,101 149,205 149,205 50,049 33.5 34,843 10,008 44,851 15,045 168,940 108,529 241,461 48.3 51.1 9.. 212,968 152,857 152,857 49,567 32.4 36,138 10,008 46,146 13,965 172,127 110,706 244,971 48.4 51.2 16. 206,509 144,566 144,566 44,192 30.6 34,117 10,008 44,125 17,818 177,214 112,876 241,136 50.1 52.9 2 3 3 0 . . 2 2 1 0 6 8 , , 2 5 1 6 6 9 1 1 4 4 0 8 , , 4 31 4 9 3 1 1 4 4 0 8 , , 4 3 4 1 3 9 4 48 6 , , 1 0 4 0 2 5 3 32 2 . . 5 8 3 3 4 4 , , 2 98 6 2 8 1 1 9 8 , ,0 0 8 9 6 2 5 5 4 2 , , 0 3 7 5 4 4 1 13 5 , , 8 7 2 7 3 2 1 16 7 3 2 , , 8 9 3 9 1 7 1 1 1 1 4 3 , , 7 0 7 1 9 9 2 2 3 3 6 6 , , 6 8 8 8 6 0 4 4 6 9 . . 8 2 5 5 4 2 . . 3 3 Aug. 6.. 219,406 152,229 152,229 49,416 32.5 36,781 16,590 53,371 13,806 160,942 111, 598 237,893 46.1 50.8 13. 218,872 152, 812 152, 812 50,405 33.0 34,835 17,389 52,224 13,836 164,579 113,254 238,949 46.7 51.7 20. 221,752 152,405 152,405 50,270 33.0 39,260 14,235 53,495 15,852 163,125 114,459 239,271 46.1 50.1 27. 228,604 158,199 158,199 52,796 33.4 40,636 15,672 56,308 14,097 159,256 113,830 241 933 44.8 49.2 Sept. 3.. 234.101 162, 559 162,559 53,364 32.8 46,369 11,364 57,733 13,809 159,300 114,003 247,038 44.1 47.3 10. 234,579 159,044 159,044 51,457 32.4 51,601 10,014 61,615 13,920 162,499 112,689 252, Oil 44.6 47.3 17. 231,752 154,602 154,602 48,956 31.7 54,746 8,584 63,330 13,820 164,575 111,387 252,350 45.2 47.6 24. 249,168 170,156 170,156 52,678 31.0 56,926 8,209 65,135 13,877 145,894 112,900 249, 362 40.3 42.5 Oct. 1.. 249,321 174,550 174,550 53,708 30.8 56,114 4,951 61,065 13,706 154,622 118,537 252,516 41.7 43.0 8.. 245,413 176,268 176,268 55,241 31.3 53,233 2,073 55,306 13,839 160,183 118,144 254,381 43.0 43.6 15. 237.102 165,556 165,556 53,388 32.2 56,404 1,345 57,749 13,797 165,358 113,224 256,213 44.8 45.1 22. 237,418 162,698 162,698 55,785 34.3 60,041 886 60,927 13,793 166,560 116,394 254,297 44.9 45.2 D N e o c v . . 5 3 3 2 2 2 1 1 1 1 0 3 . 9 6 . 7 9 0 2 . . . . . . . . . . 2 2 2 2 2 2 2 2 2 2 2 2 2 3 4 3 2 3 3 2 5 7 5 7 3 5 4 4 8 2 , , , , , , , , , , 6 0 9 7 9 9 2 4 3 5 7 4 0 6 0 9 2 6 3 1 6 6 9 3 1 0 2 4 7 7 1 1 1 1 1 1 1 1 1 1 6 6 7 6 7 5 6 5 6 5 6 5 4 4 0 1 1 9 5 6 , , , , , , , , , , 8 6 1 3 0 4 2 4 1 8 3 8 6 0 0 8 8 3 6 7 6 6 6 1 9 9 4 8 8 2 1 1 1 1 1 1 1 1 1 1 6 6 6 6 7 5 7 6 5 5 4 5 4 5 6 0 9 1 1 6 , , , , , , , , , , 1 6 8 3 4 8 0 4 2 1 6 8 3 0 8 0 7 3 8 6 6 6 6 1 9 9 2 8 4 8 5 5 5 5 5 4 5 5 4 4 5 9 2 3 5 9 3 5 9 4 , , , , , , , , , , 3 4 8 6 3 6 2 6 3 6 6 5 2 8 6 9 2 5 2 8 0 7 0 5 0 3 8 3 3 1 3 3 3 3 3 3 3 3 3 3 0 2 3 3 3 3 2 3 0 1 . . . . . . . . . . 1 3 6 1 7 3 3 6 0 2 6 4 4 4 4 4 5 5 5 4 1 0 0 0 5 6 4 9 8 1 , , , , , , , , , , 3 2 3 1 6 8 9 8 2 4 1 9 4 0 3 2 1 6 6 7 3 6 9 1 7 9 3 6 8 7 6 6 6 6 6 6 , , , , , , 9 9 9 9 9 9 9 5 1 1 1 1 1 1 7 7 7 7 7 7 3 0 6 5 5 5 4 5 5 5 4 4 0 8 4 3 8 2 7 7 1 6 , , , , , , , , , , 9 2 8 5 2 1 2 2 4 8 1 0 3 4 1 6 8 7 3 3 6 1 0 6 3 6 5 7 0 0 1 2 1 1 1 1 1 1 1 1 0 3 3 8 3 3 3 3 3 3 , , , , , , , , , , 0 9 9 9 9 9 5 9 9 7 3 3 3 3 1 5 3 3 9 2 1 3 3 3 3 4 2 2 7 4 1 1 1 1 1 1 1 1 1 1 6 6 6 7 8 7 7 8 7 8 4 7 4 7 4 8 5 7 9 7 , , , , , , , , , , 0 7 3 6 8 1 4 9 0 7 6 2 1 1 6 4 9 5 8 1 6 9 6 5 5 2 8 8 0 7 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 1 0 3 8 2 4 8 8 7 7 0 1 , , , , , , , , , , 4 3 8 4 7 2 4 2 3 5 0 0 6 9 9 5 6 0 2 0 6 1 1 0 9 5 0 9 3 2 2 2 2 2 2 2 2 2 2 2 5 5 5 5 5 6 7 6 7 7 1 4 8 6 8 1 2 6 2 0 , , , , , , , , , , 7 1 2 8 7 8 6 9 5 7 4 2 8 5 5 1 6 3 4 4 6 6 1 1 9 1 2 8 5 8 4 4 4 4 4 4 4 4 4 4 8 9 5 4 6 5 9 9 7 4 . . . . . . . . . 9 1 5 9 0 6 7 3 9 5 4 4 4 4 4 4 4 5 4 5 5 5 8 6 8 9 9 7 1 1 . . . . . . . . . . 0 0 7 5 8 5 3 1 1 1 a i Minus sign indicates net amounts sold to other Federal Reserve Banks. * Adjusted percentages are calculated after increasing or reducing reserves held by the amount of accommodation extended to or received from other Federal Keserve Banks. a W Ual o CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

592 AST^UAL REPORT FEDERAL RESERVE BOARD. i FEDERALRESERVE BANK OFSAMFRANCISCO NET DEPOSIT LIABILITY, 1^ F.R. NOTE CIRCULATION. CASHRESERVES.ANO RESERVE RATIOS. 1920. 60 60 .£-• SO so 40 30 2O 10 0 RESERVE PERCENTAGES. ACTUALS ADJUSTED "£: SEE NOTE BELOW^ 150 /so • 100 il n w H Id P JOO • SO n H H It it so DEPOSIT LIABILITY 300 2S0 200 ISO IOO SO IOO IOO SO DEPOSITANPF.R.NOTELIABILITIES,^; AND TOTAL RESERVES/C* JAIH.\fEB\MAR\APR. r\nov\DEc. I Jldjusted jurcenJbages are ccdcaLctfzd, after increasing or reducing f U l d b t h U f d Ci tedd Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.— Volume of paper discounted and bought. [In thousands of dollars.] Discounted paper. Purchased paper. Total discounted and purchased paper. Month. Total. o b m b y S l e i e G g n c t a u o t r v w i e o e d a r n r n s - . B a a a c n n c c k e e e p s r t . s - 1 a a T c n r c c a e e d p s e t . - All other. Total. B a a a c n n c c k e e p e s r t . - s' ex D ch o a ll n a g r e, a a T c n r c c a e e d p s e t . - 1920 1919 1918 1917 January 209,711 164,171 1,966 2,754 40,820 56,784 55,533 175 1,076 266,495 179,089 36,728 3,002 February 163,814 129,765 1,115 1,278 31,656 14,791 12,873 35 1,883 178,605 180,760 36,638 3,595 March 251,923 190,051 5,249 1,319 55,304 30,364 28,144 51 2,169 282,287 185,720 39,873 3,311 April 302,469 234,652 6,250 820 60,747 59,037 54,546 646 3,845 361,506 191,237 45,528 4,852 May 324,781 241,548 5,387 3,149 74,697 12,046 10,042 2,004 336,827 193,278 63,721 5,132 June 230,275 155,317 4,783 1,990 68,185 22,585 21,631 75 879 252,860 179,590 52,101 11,709 July 247,121 166,071 1,703 2,196 77,151 19,318 18,359 201 758 266,439 155,481 103,745 9,638 August 227,797 143,222 1,502 1,669 81,404 22,964 22,766 50 148 250,761 154,023 104,506 14,514 September 244,973 160,526 2,251 3,107 79,089 44,684 43,116 1,100 468 289,657 185,401 134,618 12,396 October 227,453 167,442 1,832 2,485 55,694 34,570 33,450 904 216 262,023 230,030 186,037 16,494 I November 227,463 154,991 1,317 1,939 69,216 23,663 23,208 405 52 251,126 216,189 126,732 34,376 December 307,867 212,869 253 2,094 92,651 24,039 23,331 639 69 331,906 246,093 161,867 31,979 Total: 1920 2,965,647 2,120,625 33,608 24,800 786,614 364,845 346,997 4,281 13,567 3,330,492 1919 1,951,062 1,745,959 365 10,840 193,898 345,829 337,526 271 8,032 2,296,891 1918. 941,441 679,720 123 12,807 248,791 150,653 117,266 33,387 1,092,094 1917 102,981 19,905 5,210 77,866 48,017 32,283 15,734 1,50,99S w a o D Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

594 ANKUAL REPORT FEDERAL RESERVE BOARD. SCHEDULE 4.—Earnings and expenses. 1920 1919 1918 1917 EARNINGS. Bills discounted , $8,259,664 $3,667,951 $2,671,397 $292,982 Bills purchased 3,890,556 2,870,368 1,097,630 308,596 United States securities 322,787 238,385 135,268 147,355 Municipal warrants 11,935 Transfers—net earnings 87,707 178,410 127,388 64,363 Commissions received 72 35,383 Deficient reserve penalties (including interest). 130,157 65,970 96,409 "*"*i8,*222 Miscellaneous 15, 725 140 24,310 11,302 T otal earning s 12,706,668 7,021,224 4,187,785 854,755 CURRENT EXPENSES. Expenses of operation: Assessments account expenses of Federal Reserve Board 45,964 33,790 22,277 16,560' Federal Advisory Council (fees and traveling expenses) 1,417 2,594 3,043 150 Governors' conferences (including traveling expenses) 1,272 354 944: Federal Reserve agents' conferences (including traveling expenses) 1,683 1,105 601 Salaries: Bank officers 188,017 136,807 94,605 56,657 Clerical staff 1,018,812 491,627 287,608 56,891 Special officers and watchmen 33,150 13,757 1,595 434 All other 38,691 19,005 1,117 160 Life insurance premiums (employees' group insurance) 9,789 Directors' fees 8,420 5,879 4,307 2,372 Per diem allowance 849 1,344 1,480 465 Traveling expenses 1,830 Officers' and clerks' traveling expenses 32,193 16,729 14,193 3,825- Legal fees 4,545 3,199 2,919 1,323 Rent 21,163 3,256 18,306 13,669- Taxes and fireinsurance 8,222 5,672 7,768 104 Telephone 10, 415 4,912 4,859 2,313 Telegraph 70,615 27,929 11,716 2,371 Postage 67,341 47,193 41,813 3,20& Expressage 7,653 4,538 53,888 6,960 Insurance and premiums on fidelity bonds 26,408 20,636 9,343 3,437 Light, heat, and power 9,246 5,852 2,960 464 Printing and stationery 178,489 88,080 50,933 18,407 Repairs and alterations 70,296 18,620 14, 742 1,506- Currency shipments to and from member and nonmember banks and between the Federal Reserve Bank and its branches 37,921 46,474 Currency shipments (other than Federal Reserve and Federal Reserve Bank notes) to and from Washington or a subtreasury 17,190 Allother 81,963 46,197 126,550 10,966 Total expenses of operation 1,993,554 1,047,693 776,977 203,396 Federal Reserve currency (original cost, including shipping charges) , 219,398 187,486 238,746 34,998 Miscellaneous charges account note issues 40,600 28,411 9,678 8,077 Taxes on Federal Reserve Bank note circulation 46,283 35,400 Furniture and equipment 202,751 119,671 45,169 28,142 Bank premises 13,094 Disbursements of transit department in excess of net service charges received , 33,098 Total current expenses. 2,502,586 1,431,755 1,070, 570 307,711 Current net earnings . 10,204,082 5,589,469 3,117,215 547, 044 PROFIT AND LOSS ACCOUNT. Earnings I 12,706,668 7,021,224 4,187, 785 854,75i> Current expenses 2,502,586 1,431,755 1,070,570 307,711 Current net earnings 10,204,082 5,589,469 3,117,215 547,044 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12 SAN FRANCISCO. 595 SCHEDULE 4.—Earnings and expenses—Continued. 1920 1919 1918 1917 PROFIT AND LOSS ACCOUNT—continued. Additions to current net earnings on account of— Amounts previously deducted from current net earnings for— Assessment account expenses of Federal Reserve Board $45,964 Depreciation on United States bonds $27 All other 417 967 $76,685 $15,417 Total 10,250,463 5,590,463 3,193,900 562,461 Reductions from current net earnings on account of— 123,570 168,625 238,600 Assessment account expenses of Federal Reserve Board . 12,658 33,306 Reserve for depreciation in United States bonds.... 91,000 Special reserve 7,900 Allother . . . . 5,412 1,172 1,551 Total deductions. . 141,640 203,103 248,051 91,000 Net earnings available for dividends, surplus and franchise tax Dec. 31 10,108,823 5,387,360 2,945,849 471,461 Dividends paid 384, 713 296,161 497,675 394,776 Transferred to surplus fund 6,654,855 5,091,199 12,448,174 Franchise tax paid United States Government 3,069,255 Profit and loss Jan. 1,1918 76,685 1 Includes $1,224,087 reserve for Government franchise tax transferred to surplus fund in 1919. SCHEDULE 5.—Currency receipts from and shipments to member and nonmember banks. [In thousands of dollars.] Receipts. Shipments. Total receipts. Total shipments. Month. m b F e a r m n o k m b s e . r m F e n r m o o n m b - er m b e a T m n o k b s e . r m n e T m o o n b - er 1920 1919 1920 1919 banks. banks. January 35,300 950 12,409 1,109 36,250 30,291 13,518 7,855 February 19,950 764 17,602 1,281 20,714 15,783 18,883 9,817 March 24,188 599 20,969 3,984 24, 787 15,051 24,953 11,248 April 24,249 635 25, 851 12,537 24, 884 14,303 38,388 15,312 May 24,758 553 25, 599 4,932 25,311 IS, 288 30,531 14,096 June 27,390 543 41,477 2,794 27,933 16,747 44,271 14,941 July 36,419 2,052 36, 756 8,276 38, 471 22,918 45,032 15,715 August 27,516 827 33, 260 17,366 28, 343 15,067 50,626 21,266 September 30,083 817 37,687 20, 230 30,900 16,299 57,917 23,325 October 30,875 578 33,615 16,303 31,453 19,908 49,918 21,603 November | 30,939 543 43,794 13,310 31, 482 15,618 57,104 29,848 December | 45,156 13,066 53,222 14,456 58,222 24,820 67,678 30,555 Total: 1920. 356,823 21,927 382,241 116,578 378,750 1919., 210,590 14,503 201,870 13,711 225,093 215,581 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

596 ANNUAL REPORT FEDERAL RESERVE BOARD. SCHEDULE 6.—Operations of check clearing and collection department. [Numbers and amounts in thousands.] Items drawn on banks in own district. Items forwarded Items drawn on to other Federal Located in Fed- Located outside! Treasurer of Reserve Banks Total.* eral Reserve Federal Reserve | United States. and their Period. Bank and branch Bank and branch branches. cities. cities. N b u e m r. - Amount. N b u e m r. -i |Amount. N b u e m r. - Amount. N b u e m r. - Amount.j N be u r m . - Amount.. Jan. 2 to Jan. 15. 146 133,807 611 61,087 50 84,384 25 24,649 303,927 Feb. 15 314 253,184 1,274 117,627 91 120,960 51 48,025 1,730 539,796 Mar. 15 371 281, 050 1.379 132, 367 106 104, 754 66 61,270 1,922 579,441 Apr. 15 459 325, 534 1,451 115,527 119 288,018 85 69,562 2,114 828.641 May 15 384 305, 774 1,426 138, 686 129 67, 852 78 47,224 2,017 559,536 June 15 400 322, 246 1, 489 141, 512 127 144. 813 80 39,658 2,096 648,229 July 15 404 329, 720 1,580 151, 357 129 235, 942 106 38,919 2,219 755,938 Au?. 15 421 310, 982 3,691 149,112 112 104, 970 107 38,041 2,331 603,105 Sept. 15 453 352, 856 1,899 172,119 134 100,691 120 41,290 2,606 666,956- Oct. 15 454 375, 028 2,017 197, 443 139 107, 857 126 46,467 2,736 726, 795 Nov. 15 503 360,103 2,011 196, 398 149 88,511 129 45,954 2,792 690,966 Dec. 15 548 371,196 2,226 201. 026 154 193,135 143 47,620 3,071 812,977 Dec. 31 318 189, 333 1,223 104, 582 84 85,109 24, 750 1,714 403,774 Total 5?17o J3,910,813 20,277 jl/908,84 1,523 1,726, 1,205 573,429 28,180 8,120,081 1 Exclusive of duplications on account of items handled by both paren* bank and branch. 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 1920. 597 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICERS AND MEMBERS OF THE FEDERAL ADVISORY COUNCIL FOR THE YEAR 1920. OFFICERS. President, JAMES B. FORGAN. Vice president, L. L. RUE. Secretary, MERRITT H. GRIM. EXECUTIVE COMMITTEE. JAMES B. FORGAN. PHILIP STOCKTON. L. L. RUE. W. S. ROWE. A. B. HEPBURN. F. 0. WATTS. MEMBERS. PHILIP STOCKTON, 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. OSCAR WELLS, Federal Reserve District No. 6. JAMES B. FORGAN, Federal Reserve District No. 7. F. O. WATTS, Federal Reserve District No. 8. C. T. JAFFRAY, Federal Reserve District No. 9. E. F. SWINNEY, Federal Reserve District No. 10. R. L. BALL, 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 compensation 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. 598 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICERS AND MEMBERS OF FEDERAL ADVISORY COUNCIL. 599 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 ashington on the third Monday of the months of February, May, September, and ovember of each year. Special meetings may be called at any time and ])lace 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.—AMEJNDMJSINTiS. 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. 45525°—21 39 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECOMMENDATIONS OF THE FEDERAL ADVISORY COUNCIL TO THE FEDERAL RESERVE BOARD, FEBRUARY 17, 1920. TOPIC NO. 1.—Special rates for the rediscount of bankers' acceptances and the policy which should be pursued by Federal Reserve Banks, having such rates, in their open-market purchases. Recommendation.—The special rate established by Federal Reserve Banks for the rediscount of bankers' acceptances affords member banks the legitimate opportunity of purchasing them, carrying them as a secondary reserve, and realizing on them promptly whenever they have occasion to do so. It also, however, affords them the opportunity of purchasing them at current open-market rates and having them rediscounted at the preferred rate simply for the profit in the transaction if this is permitted. It should be understood that the object of the special rate is to encourage member banks to carry lines of this class of paper as a secondary reserve, promptly convertible into legal reserve balances when such conversion becomes necessary. With such an understanding prevailing many of the member banks would no doubt adopt the policy of carrying lines of bankers' acceptances as secondary reserves and the market for them would thus be materially broadened. In some districts this has already occurred. The policy to be pursued therefore by Federal Reserve Banks should be to leave the control of the open market for such acceptances in the hands of member banks and discount houses, so long as the former use the special rediscount rate legitimately and do not abuse it. The Federal Reserve Banks should not, therefore, normally buy acceptances in the open market below the current rates at which the member banks and discount houses are buying them. Should it become urgently necessary to curtail rediscounts at the Federal Reserve Banks rates can be raised, and should it be found that the preferred rate for bankers' acceptances is being abused such discrimination in their favor should be discontinued. TOPIC NO. 2.—Rates of interest on deposits paid by member banks. Recommendation.—The council has had under consideration the rates of interest paid on the several classes of deposits by the banks located in the large cities of each Federal Reserve district, as shown in a statement prepared by the Federal Reserve Agents and submitted to a conference of cankers representing the 12 districts recently held in Chicago. As the banks in the three central reserve cities and those in all other cities, where the rate of interest paid on bank deposits has been regulated by the current rate of discount at the Federal Reserve Banks on 90-day commercial paper, have already taken action limiting the maximum rate of interest to be paid on net and available daily balances of banks and trust companies to 2J per cent and as such action enables the Federal Reserve Banks to increase their discount 600 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECOMMENDATIONS OF FEDERAL ADVISORY COUNCIL. 601 rate without reference to existing clearing house rules regulating the payment of interest, we are of the opinion that no further steps are necessary or advisable looking to the regulation of the rates of interest to be paid on deposits. TOPIC NO. 3.—Effectiveness of the Federal Reserve Banks7 6 per cent rediscount rate. Recommendation.—It is the opinion of the council that the Federal Reserve Banks' 6 per cent rate for the rediscount of 90-da^ commercial paper has not been without its effect on the credit situation, but this rate has not been long enough in operation to determine whether or not it is high enough to effect the control desired. TOPIC NO. 4.—Differential rates for loans secured by Government bonds. Recommendation.—In the opinion of the council the differential rates now established in favor of loans secured by the Liberty and Victory loan bonds will ultimately have to be discontinued, but we do not believe that the time has yet arrived when it should be done. TOPIC NO. 5.—The Federal Reserve Board 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 basic rates. Recommendation.—The council approves the principle of applying regulatory rates to such banks as are making an excessive use of the facilities of the Federal Reserve Banks, but doubts the practicability of establishing a normal maximum rediscount line applicable alike to all member banks. In determining the line of discounts and loans to be granted to a member bank due regard must be given to the nature of the business of each member bank, as it is obvious that a bank serving a commercial clientele would legitimately require a larger rediscount line that one which did not serve customers who require considerable borrowing facilities, and such bank should not be penalized for performing its proper function in financing commerce and trade. TOPIC NO. 6.—Rate of interest at which future Government certificates of indebtedness should be issued. Recommendation.—If such certificates are to be of short maturity, not exceeding three months, the council believes they may be marketed if they bear a rate of 4| per cent. If, however, they are issued to mature in 9 or 12 months, it is the opinion of the council that a higher rate, bearing a closer relation to the rates current in the investment market, will be necessary in order to find a market for them. In Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

602 ANNUAL REPORT FEDERAL RESERVE BOARD. either case a more general distribution of them should be aimed at and their concentration in the Federal Reserve Banks as security for loans to member banks should be discouraged. For this purpose the Federal Reserve Banks' rate for loans to member banks secured by them should be not less than one-fourth of 1 per cent above the rate of interest at which they are issued. TOPIC NO. 7.—Are balances due from foreign banks deductible from balances due to banks for the purpose of determining reserves ? Recommendation.—We have read the opinion of your counsel undertaking to refute the opinions of Messrs. Sherman & Sterling, White & Case, Mayer, Meyer, Austrian & Platt, Stetson, Jennings & Russell, and Edward E. Brown, all eminent bank counsel, who agree that balances due from foreign banks can lawfully be deducted from balances due to banks for the purpose of determining reserves in the manner provided by section 19 of the Federal Reserve Act. We submit that the great preponderance of counsel is on the side of the opinion expressed by us to the effect that balances due from foreign banks may legally be so deducted. Wholly apart, however, from the legal question on which the lawyers seem to differ five to one, it is the opinion of this council that the question should be considered and decided by your Board along the lines of good banking practice. The practice has heretofore existed and we know of no good reason why it should be changed now. At the present time it makes very little difference to banks carrying foreign balances, as nearly all of them have little or no balances due them in foreign countries. In normal times, however, these balances mount up into very substantial figures and there are no balances on their books more easily and more readily convertible into legal reserve balances with the Federal Reserve Banks than they are. In the interest of financing the foreign trade of this country, we therefore again respectfully urge a reconsideration of your ruling in this matter. The following members of the Federal Advisory Council were present at this meeting: Messrs. James B. Forgan, president; L. L. Rue, vice president; Philip Stockton, W. S. Rowe, J. G. Brown, Oscar Wells, F. O. Watts, C. T. Jaffray, R. L. Ball, A. L. Mills, and Merritt H. Grim, secretary. Recommendations of the Federal Advisory Council to the Federal Reserve Board May 18, 1920. TOPIC NO. 1.—Causes of continued expansion of credits and of Federal Reserve note issues. Answer.—There are many contributing causes, of which the following may be regarded as paramount: (1) We recognize, of course, that the first cause is the Great War; (2) great extravagance, national, municipal, and individual; (3) inefficiency and indifference of labor, resulting in lessening production; (4) a shortage of transportation facilities, thus preventing the normal movement of commodities; (5) The vicious circle of increasing wages and prices. TOPIC NO. 2.—How can the reserve position of the Federal Reserve Banks be materially strengthened before the seasonal demand sets in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECOMMENDATIONS OF FEDERAL ADVISORY COUNCIL. 603 next fall without undue disturbance of the processes of production and distribution ? Recommendation,—By urging upon member banks, through the Federal Reserve Banks, the wisdom of showing borrowers the necessity of the curtailment of general credits and especially for nonessential uses, as well as continuing to discourage loans for capital and speculative purposes; by checking excessive borrowings through the application of higher rates. TOPIC NO. 3.—If steps can not be taken at this time leading to a more normal proportion between the volume of credits and the volume of goods, when can they be taken ? Recommendation.—In our opinion steps should be taken now, as outlined in answer to the last question. TOPIC NO. 4.—What is the effect upon the general situation of the increased Treasury borrowings and what should be the policy of the Federal Reserve Banks in establishing 'rates of discount on paper secured by certificates of indebtedness ? Recommendation.—It is obvious that the borrowings of the Treasury have the same effect upon the general credit situation as those of otner borrowers. The council would suggest the wisdom of congressional relief from the burden of Government financing by a policy of rigid economy; the revision of the tax laws for the sake of a more equitable distribution of the burden without reducing the revenue; the enactment of the budget system, the budget to include provision for the gradual payment of the short-time obligations of the Treasury. These would of necessity preclude unwise appropriations, such as the proposed soldiers' bonus. In view of the large volume of Treasury certificates of indebtedness carried by member banks at the instance of the Treasury Department, we believe that rates established by the Federal Reserve Banks on paper secured by them should not be materially greater than the rates borne by the certificates. TOPIC NO. 5.—Should there be a revision of rates on paper secured by Liberty bonds and Victory notes ? Recommendation.—From a survey of the present rates in force by the Federal Reserve Banks it would seem that 6 per cent is now being charged on paper secured by Liberty bonds and Victory notes. In the judgment of the council, when and if any further revision of rates should be made, there should be shown due consideration for the original subscriber of Government securities. The following members of the Federal Advisory Council were present at this meeting: Messrs. James B. Forgan, president; L. L. Rue, vice president; Philip Stockton, A. B. Hepburn, W. S. Rowe, J. G. Brown, Oscar Wells, F. O. Watts, E. F. Swinney, R. L. Ball, A. L. Mills, and Merritt H. Grim, secretary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

604 ANNUAL REPORT FEDERAL RESERVE BOARD. Recommendations of the Federal Advisory Council to the Federal Reserve Board September 21, 1920. TOPIC NO. 1.—Credit control. (1) What are the objects sought to be attained by the policy of credit control in the existing circumstances ? Is the object (a) to maintain or to stregthen reserves ? (b) To stabilize the existing situation by prevention of further expansion? (c) To bring about a discriminating deflation by reducing the total volume of credit ? Recommendation.—From the statistics compiled by Prof. Kemmerer, of Princeton, bank deposits increased from $12,678,000,000 in 1913 to $27,928,000,000 in 1919. At the same time the ratio of cash reserves to total deposits diminished from 11.7 in 1913 to 6.6 in 1919. "Taking the index numbers of the United States Bureau of Labor Statistics as the most comprehensive and most scientifically prepared of the index numbers covering the entire period 1913 to 1919, inclusive, we may say that the wholesale price level increased from 1913 to April, 1920, 165 per cent; in other words if one calls the dollar of 1913 a 100 per cent dollar in its purchasing power over commodities at wholesale, the dollar of to-day is approximately a 38 per cent dollar.77 This was the condition of affairs when the Federal Reserve Board undertook to exercise its power over credit for the purpose of protecting personal and commercial interests. All experienced business men knew that prices would seek a lower level by gradual process if good judgment and conservatism prevailed, or by a commmercial debacle if the illogical, ill-considered, and extravagant methods brought about by the war were permitted to continue. Under these circumstances, and none too soon, the Federal Reserve Board exercisod its power over credit in order to constrain bankers and business men to exercise conservatism and help strengthen commercial and financial conditions. The Board in so doing have accomplished a great work and have demonstrated one of the powers for good which the Federal Reserve System possesses. Naturally their first move was in the direction of strengthening the bank's reserves. That means strengthening the bank and putting it in a liquid position—in the position in which a well-managed bank should always be, to respond to the demands of its clientele. Strengthening the reserves meant curtailing credit and ipso facto would prevent "further expansion." No one wishes to "stabilize" existing conditions, but to get away from them to a safer and more conservative level. This would naturally bring about a " discriminating deflation" by extending credit to such industries as were essential and needed support in order to preserve the general business welfare, and by restraining credit to activities which though perfectly legitimate were nevertheless nonessential to the general welfare and should be promoted by the funds of their owners and managers, and not be allowed to absorb commercial resources needed for the financing of business closely connected with the public welfare. (2) Can a substantial reduction in the volume of credit be effected without injury to the legitimate business of the country and without curtailment of essential production ? Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECOMMENDATIONS OF FEDERAL ADVISORY COUNCIL. 605 Recommendation.—A substantial reduction of the volume of credit can be effected without injury to the legitimate industry of the country and without curtailing of essential production. Not only this but such reduction in volume of credit may be made to materially strengthen the credit fabric of the country as a whole. The first and most beneficent effect of the act of the Federal Reserve Board in controlling credit was to arrest the attention of the whole country and to incur high commendation from conservative forces and incur criticism ranging from mild to violent from certain sections or interests. It made everybody stop and think and the discussion which ensued showed plainly that the Board was right. The psychological attitude of the country toward business immediately began to change and from wild extravagance and a disposition to enter into new and ill-considered business, there came about a feeling of conservatism. People begian to ask themselves just where they stood, how much they were really worth, and how they would fare if called upon to liquidate their outstanding obligations. Drafts drawn against goods shipped abroad were not always paid and sometimes returned. People began to repudiate their contracts to receive goods, especially in cases where the price had receded. Competition m business has brought about a most unfortunate practice—people order goods and then if it does not suit their convenience, they refuse to receive and pay for the same. This has continued so long and is so much the custom that manufacturers and wholesalers hardly expect to hold their customers to rigid fulfillment of their contracts if a change in the market or a change in business conditions makes it desirable for them to repudiate. Such repudiation of purchases began to happen generally and manufacturers and wholesalers found themselves possessed of large volumes of very high-priced goods which they could not market without loss. That is the condition of the mercantile industry in our country to-day. They have for years dictated the price of their goods and they are now endeavoring to dispose of them to the public without material abatement in prices. It is generally realized that they can not accomplish such results; recessions in price have already set in and are bound to be more pronounced. Business people will have to liquidate their goods in order to liquidate financial obligations. This will bring about competition in selling throughout the country, something that has not existed for several years and this competition in its normal and natural course will clarify the situation and bring about normal conditions. (3) To what extent has one or more of these objects been attained in each district and in the country at large ? Recommendation.—The object sought to be accomplished by the Federal Reserve Board has been and is being accomplished in all districts. (4) To what extent is it necessary to distinguish between the immediate objective of the policy of credit control and the remoter objective, such as reduction in the cost of living? Recommendation.—The immediate effect of credit control is to safeguard the situation, to enable all business to function normally, and the Board should at all times make this clear. Although a logical result may be lower prices and lower cost of living, it should distinctly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

606 ANNUAL REPORT FEDERAL RESERVE BOARD. appear that the Board does not seek to control or regulate prices, but leaves the price level to competition under the law of supply and demand. (5) What is the proper conception of the " normal credit condition " which the Federal Reserve Banks should seek to bring about ? NOTE.—Obviously if "liquidation " or "stabilization " of the existing credit situation are to be regarded as the objectives of the Federal Reserve policy of credit control, a condition which can be regarded as "normal" will be attained very much more quickly than if the objective is a reduction in considerable amount of the total volume of credit. Recommendation.—The proper concept of "a normal credit condition" is something that varies with the years, with the crops, with commerce, involving domestic and foreign exchange, and with all the varying influences that make up the activity of a commercial nation. The making of crops has to be financed. While we are greatly indebted to nature for her annual contribution to the prosperity and happiness of mankind, the volume of that contribution depends very largely upon mankind's activities. The latent resources so abundnant and so valuable nevertheless must be exhumed, and that costs time and money and is a regular business in itself. A normal credit condition would seem to be one in which funds were obtainable in sufficient volume to enable the individual, the corporation, the great transportation systems of the country, the municipality, and the State to obtain funds at reasonable rates with which to prosecute their respective enterprises. This is not a static world; there should also be funds available for new and enlarged enterprise, for installation of new and improved methods and processes, which the inventive genius of mankind is constantly producing. (6) Methods of credit control. Consideration of the efficacy of different methods of credit control. (a) Horizontal increase of rates, especially of commercial rates; a canvass of the experience of banks which have put into effect a 7 per cent commercial rate, to wit, New York, Boston, Chicago, and Minneapolis. (b) Progressive rate schedules starting with 6 per cent as a basic rate; a canvass of the experience of Federal Reserve Banks of Kansas City, Dallas, St. Louis, and Atlanta. (c) Other methods of dealing with the situation, such as the implication that increased offerings by member banks will force higher rates or recourse to the progressive rate; a canvass of the experience of Federal Reserve Banks of Cleveland, Philadelphia, Richmond, and San Francisco. (d) Restricting issues of Federal Reserve notes to Federal Reserve Banks as a potential means of enforcing credit control; canvass of English experience and views. Recommendation.—The different methods of credit control have not had a sufficient test period for the experience of the banks to be conclusive. It is found that each class of banks holds its own method to be the most satisfactory and in such a situation there should be further experience before we could give to the Board any conclusion Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECOMMENDATIONS OF FEDERAL ADVISORY COUNCIL. 607 as between the three methods in use or advise any present attempt at uniformity in method. (7) Inter-Reserve Bank rediscounts as related to the problem of credit control. Is the existing policy and practice with respect to such rediscounts satisfactory and sound, (a) To effect an approximate equalization of reserves ? Recommendation.—The existing policy with respect to Inter- Reserve Bank rediscounts is sound and the Board is to be highly commended for the manner in which they have made it effective. (6) At the same rate fixed for its member banks by the bank granting the accommodation? NOTE.—When recourse was first had to inter-bank rediscounts it was thought that the value of a Federal Reserve Bank's indorsement was entitled to recognition in the form of a reduced discount rate. More recently this idea has been abandoned and rediscount transactions between Federal Reserve Banks are made at the rates established for member banks by the Federal Reserve Bank extending the accommodation. The question now arises, however, whether a Federal Reserve Bank which has been able to maintain high reserves by reducing the demands for accommodation from its own member banks, which are its depositors, should be required to extend accommodations to member banks in other districts through the medium of their Federal Reserve Bank at the same rates as are established for their own members. Recommendation.—The rate of such rediscounts should be variable and fixed by the Board from time to time as the situation may appear to require and without any special regard either for the profit or loss to the contracting banks. In the present situation we approve the action of the Board in fixing the rate of such rediscounts at 7 per cent. TOPIC NO. 2.—Loans secured by Liberty bonds and Victory notes. (1) Is there any moral obligation resting upon any of the Federal Reserve Banks to establish rates lower than commercial rates for paper of this classification ? Recommendation.—It is difficult for this council to determine whether any moral obligation exists in any of the Federal Reserve districts. On the general proposition of moral obligation arising out of the methods adopted in the various Liberty bond campaigns the council is equally divided, voting 6 to 6. (2) Would liquidation of loans of this class be retarded or promoted by the establishment of lower rates ? Recommendation.—The establishment of lower rates doubtless would retard the liquidation of loans by Liberty bonds and Victory notes. (3) If lower rates are deemed desirable, would it be equitable and practicable to have such rates apply to original subscribers only ? Recommendation.—It might be equitable to confine preferential rates to original subscribers only, but we are informed that you have been advised that it would not be legal, and in our opinion it would not be practicable. (4) Should member banks' collateral notes be fully secured, taking market value instead of face value as a basis ? (5) If so, how and when could the new policy be put into effect with a minimum of friction ? Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

608 ANNUAL REPORT FEDERAL RESERVE BOARD. Recommendation.—Yes; we understand this is the practice in some districts and should be made general. TOPIC NO. 3.—Federal Reserve note issues. (1) Is the note-issue policy of the Federal Reserve System subject to legitimate criticism? Recommendation.—We regard the note-issue policy under the Federal Reserve System as sound and therefore not subject to legitimate criticism. (2) What connection is there between changes in the volume of credit and the volume of currency ? (3) Is there any difference in relation to effect upon prices between the volume of credit and the volume of currency ? Answer.—It is not clear to the council just what is meant by these questions. They are too involved to admit of their being satisfactorily answered in the time at the council's disposal. (4) Can the note-issue policy of the Federal Reserve System be properly charged with any important responsibility for inflated prices; if so, what has been the responsibility and in what way does the issue of Federal Reserve notes promote or assist inflation. Recommendation.—An increase of the Federal Reserve note issue was made necessary by war conditions and doubtless had some influence in inflating prices, but in the opinion of the council there has been no undue issue of these notes. (5) Can the accepted principles of bank note currency regulation, applicable in normal circumstances when the commerce of the world is conducted on a gold standard, be safely taken as a guide in the abnormal circumstances now existing, when the gold standard is virtually suspended, except in the United States and Japan ? (6) In connection with the policy of credit control should the present note-issue policy of the Federal Reserve System be changed and restrictions be thrown around the issue of Federal Reserve notes ? (7) If the issue of Federal Reserve notes should be restricted, what form should the restriction take and what effect would different methods of restrictions have ? (a) Imposition of charges against Federal Reserve notes upon the uncovered part of circulation issued to them at a given rate, for example, a fixed rate of 5 per cent, or a rate varying with the commercal rate. (b) Would it be practicable to establish for each member bank a so-called normal currency limit and to impose charges upon member banks calling for notes in excess of their limit ? (c) Would it be advisable, while continuing to have the Federal Reserve Banks pay all transportation charges on incoming currency, to have shipments of outgoing currency made at the expense of the consignees ? Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECOMMENDATIONS OF FEDERxlL ADVISORY COUNCIL. 609 (d) Restrictions by definition of the character of the paper acceptable as collateral by the Federal Reserve Agent against the issue of Federal Reserve notes. Should member banks' collateral notes or customers7 notes secured by Government obligations be taken as collateral for Federal Reserve notes ? (e) Limitation of the total volume of Federal Reserve notes by the Federal Reserve Board, the maximum amount being fixed pro rata for each Federal Reserve Bank. (The Federal Reserve Board has statutory power to accept in part or to reject entirely all applications-for Federal Reserve notes.) Would restriction of note issues in any of the above mentioned wa}7s operate to promote a better control of credit, and if so, what would be the effect upon the commerce and business of the country ? Recommendation.—We know of no reason why the principles under which bank note currency as issued under the Federal Reserve System should be changed, as sufficient time has not elapsed to test its flexibility in response to business conditions. The council is of the opinion that no alteration should be made in the regulations governing the currency issued which would impair its elasticity. The following members of the Federal Advisory Council were present at this meeting: Messrs. James B. Forgan, president; L. L. Rue, vice president; Philip Stockton, A. B. Hepburn, W. S. Rowe, J. G. Brown, Oscar Wells, F. O. Watts, C. T. Jaffray, E. F. Swinney, R. L. Ball, A. L. Mills, and Merritt EL Grim, secretary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DESCRIPTION OF FEDERAL RESERVE DISTRICTS. Below 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, 1920. A map showing outline of the districts is also appended. DISTRICT NO. 1—BOSTON (7,159,554). Connecticut (except Fairfield County) (1,079,293). Maine (770,655). Massachusetts (3,902,409). New Hampshire (444,371). Rhode Island (610,761). Vermont (352,065). DISTRICT NO. 2—NEW YORK (13,346,171). Connecticut (county of Fairfield) (328,725). New Jersey (counties of Monmouth, Middlesex, Hunterdon, Somerset, Union, Essex, Passaic, Hudson, Bergen, Morris, Sussex, and Warren) (2,501,677). New York (10,515,769). DISTRICT NO. 3--PHILADELPHIA (6,835,177). Delaware (225,134). New Jersey (except counties enumerated under District No. 2) (717,955). Pennsylvania (eastern part) (5,892,088). Counties: Adams. Chester. Huntingdon. Monroe. Snyder. Bedford. Clearfield. Juniata. Montgomery. Sullivan. Berks. Clinton. Lackawanna. Montour. Susquehanna. Blair. Columbia. Lancaster. Northampton. Tioga. Bradford. Cumberland. Lebanon. Northumberland. Union. Bucks. Dauphin. Lehigh. Perry. Wayne. Cambria. Delaware. Luzerne. Philadelphia. Wyoming. Cameron. Elk. Lycoming. Pike. York. Carbon. Franklin. McKean. Potter. Center. Fulton. Mifflin. Schuylkill. DISTRICT NO. 4—CLEVELAND (10,069,334). Kentucky (eastern part) (1,098,882). Counties: Bath. Estill. Kenton. Magofnn. 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 (5,861,602). Pennsylvania (western part) (2,936,588). Counties: Allegheny. Clarion. Forest. Lawrence. Warren. Armstrong. Crawford. Greene. Mercer. Washington. Beaver. Erie. Indiana. Somerset. Westmoreland Butler. Fayette. Jefferson. Venango. West Virginia (northern part) (172,262). Counties: Brooke. Marshall. Ohio. Tyler. Wetzel. Hancock. 610 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DESCRIPTION OF FEDERAL RESERVE DISTRICTS. 611 DISTRICT NO. 5—RICHMOND (9,861,739.) District of Columbia (448, 541). Maryland (1,465,556). North Carolina (2,595,466). South Carolina (1,701,062). Virginia (2,334,688). West Virginia (all counties except Brooke, Hancock, Marshall, Ohio, Tyler, and Wetzel) (1,316,426). DISTRICT NO. 6—ATLANTA (9,915,370). Alabama (2,369,814). Florida (990,704). Georgia (2,925,365). Louisiana (southern part) (1,262,153). Parishes: Acadia. East Baton Rouge. Lafourche. St. Helena. Terrebonne. Allen. East Feliciana. Livingston. St. James. Vermilion. Ascension. Evangeline. Orleans. St. John the Baptist. Vernon. 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) (682,270). Counties: Adams. Greene. Jones. Neshoba. Smith. Amite. Hancock. Kemper. Newton. Stone. Clai borne. Harrison. Lamar. Pearl River. Walthall. Clarke. Hinds. Lauderdale. Perry. Warren. Copiah. Issaquena. Lawrence. Pike. W^ayne. Covington. Jackson. Leake. Rankin. Wilkinson. Forrest. Jasper. Lincoln. Scott. Yazoo. Franklin. Jefferson. Madison. Sharkey. George. Jefferson Davis. Marion. Simpson. Tennessee (eastern part) (1,685,064). Counties: Anderson. Dekalb. Jackson. Monroe. Sevier. Bedford. Dickson. James. Montgomery. Smith. Bledsoe. Fentress. Jefferson. Moore. Stewart. Blount. Franklin. Johnson. Morgan. Sullivan. Bradley. Giles. Knox. Overton. Sumner. Campbell. Grainger. Lawrence. Perry. Trousdale. Cannon. Greene. Lewis. Pickett. Unicoi. Carter. Grundy. Lincoln. Polk. Union. Cheatham. Hamblen. Loudon. Putnam. Van Bur en. Clai borne. Hamilton. McMinn. Rhea. Warren. Clay. Hancock. Macon. Roane. Washington. Cocke. Hawkins. Marion. Robertson. Wayne. Coffee. Hickman. Marshall. Rutherford. White. Cumberland. Houston. Maury. Scott. Williamson. Davidson. Humphreys. Meigs. Sequatchie. Wilson. DISTRICT NO. 7—CHICAGO (15,638,448.) Illinois (northern part) (5,322,153). Counties: Boone. Douglas. Kankakee. Marshall. Shelby. Bureau. Dupage. Kendall. Mason. Stark. Carroll. Edgar. Knox. Menard. Stephenson. Cass. Ford. Lake. Mercer. Tazewell. Champaign. Fulton. La Salle. Moultrie. Vermilion. Christian. Grundy. Lee. Ogle. Warren. Clark. Hancock. Livingston. Peoria. Whiteside. Coles. Henderson. Logan. Piatt. Will. Cook. Henry. 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

612 ANNUAL REPORT FEDERAL RESERVE BOARD. Indiana (northern part) (2,352,818). Counties: Adams. Delaware. Jay. Newton. Steuben. Allen. Elkhart. Jennings. Noble. Tippecanoe. Bartholomew. Fayette. Johnson. Ohio. Tip ton. 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. Rip ley. Wells. Clinton. Henry. Miami. Rush. White. Dearborn. Howard. Monroe. St. Joseph. Whitley. Decatur. Huntington. Montgomery. Shelby. Dekalb. Jasper. Morgan. Starke. Iowa/2,422,485). Michigan (southern part) (3,423,547). 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. New ay go. Shiawassee. Benzie. Grand Traverse;. Leelanau. Oakland. Tuscola. Berrien. Gratiot. Lena wee. 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 WisconsinL (southern part)(2,117,445). Counties Adams. Fond du Lac. Kewaunee. Oconto. Sheboygan. Brown. Grant. Lafayette. Outagamie. Vernon. Calumet. Green. Langlade. Ozaukee. Walworth. Clark. Green Lake. Manitowoc. Portage. Washington^ Columbia. Iowa. Marathon. Racine. Waukesha. Crawford. Jackson. Marinette. Richland. Waupaca. Dane. Jefferson. Marquette. Rock. Waushara. Dodge. Juneau. Milwaukee. Sauk. Winnebago^ Door. Kenosha. Monroe. Shawano. Wood. DISTRICT NO. 8—ST. LOUIS (9,333,389). Arkansas (1,770,514). Illinois (southern part) (1,250,340). 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) (601,214). Counties: Clark. Gibson. Knox. Pike. Switzerland, Crawford. Greene. Lawrence. Posey. Vanderburg. Daviess. Harrison. Martin. Scott. War rick. Dubois. Jackson. Orange. Sullivan. Washington Floyd. Jefferson. Perry. Spencer. Kentucky (western part) (1,330,802). Counties: Adair. Casey. Hancock. McLean. Shelby. Allen. Christian. Hardin. Marion. Simpson. Anderson. Clinton. Hart. Marshall. Spencer. Ballard. Crittenden. Henderson. Meade. Taylor. Barren. Cumberland. 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

DESCRIPTION OF FEDERAL RESERVE DISTRICTS. 513 Mississippi (northern part) (1,107,679). Counties: Alcorn. Clay. Lee. Panola. Tishomingo. Attala. Coahoma. Leflore. Pontotoc. Tunica. Ben ton. De 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. Oktibbehau Tippah. Missouri (eastern part) (2,604,250). Counties: All except those included in district No. 10. Tennessee (western part) (668,590). Counties: Benton. Dyer. Hardin. Lake. Obion. Carroll. Fayette. Haywood. Lauderdale. Shelby. Chester. Gibson. Henderson. McNairy. Tipton. Crockett. Hardeman. Henry. Madison. Weakley. Decatur. DISTRICT NO. 9—MINNEAPOLIS (5,159,217). Michigan (northern part) (333,267). Counties: Alger. Delta. Houghton. Luce. Menominee. Baraga. Dickinson. Iron. Mackmac. Ontonagon. Ciippewa. Gogebic. Keweenaw. Marquette. Schoolcraft. Minnesota (2,419,202). Montana (566,691). North Dakota (652,748). South Dakota (641,971). Wisconsin (northern part) (545,353388)).. Counties: Ashland. Douglas. La Crosse. Price. Vilas. Barron. Dunn. Lincoln. Kusk. Washburn. Bayfield. Eau Claire Oneida. St. Croix. Buffalo. Florence. Pepin. Sawyer. Burnett. Forest. Pierce. Taylor. Chippewa. Iron. Polk. Trempealeau. DISTRICT NO. 10—KANSAS CITY (7,115,710). Colorado (954,112). Kansas (1,777,324). Missouri (western part) (811,209). Counties: Andrew. Buchanan. Dekalb. Jasper. Platte. Atchison. Cass. Gentry. McDonald. Vernon. Barton. Clay. Holt. Newton. Worth. Bates. Clinton. Jackson. Nodaway. Nebraska/1,307,100). New Mexico (northern part) (208,768). Counties: Colfax. Mora. Sandoval. San Miguel. Taos. McKinley. Rio Arriba. San Juan. Santa Fe. Union. Oklahoma (all except southeastern part) (1,857,806). Counties: Adair. Creek. Jackson. Murray. Roger Mills. Alfalfa. Custer. Jefferson. Muskogee. Rogers. Beaver. Delaware. Kay. Noble. Seminole. Beckham. Dewey. Kingfisher Nowata. Sequoyah. Blaine. Ellis. Kiowa. Okfuskee. Stephens. Caddo. Garfield. La timer. 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. Payne. Washita. Comanche. Harper. Mclntosh. Pittsburg. Woods. Cotton. Haskell. Major. Pontotoc. Woodward. Craig. Hughes. Mayes. Pottawatomie. Wyoming (199,391). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

614 AXXVAL iiKL'oirr n-:hi-:riAL IIKSKUVK UOAUD. DISTRICT NO. 11—DALLAS < 5,779,410). Arizona souiheasiern part) (122,-WO. (ouniies: Oochi-o. I'iisi;;. (inili;Mii. >;ini;i On/. Croonier. Louisiana ''nonhern pan) (fwQJiMi). Parishes: T*ioii\ iilo. C'Micoidi;:. La ^ilic. Hod Uivor. UCM C:HTO! Hosier. l)r>oio. UM<<>!N. Itu-hl-.ind. "\\ i 1 &i:. (iiddo. « V.:.<\ Ciirroll. M.i'li-o:!. >.il)i:u'. C:iU!-.iHl. l-"r.i::kli::. Mo-choiiso. Ti-iisi--. Ciilihoni;1. <i!";iri. N.^rruhMhcs. I'liion. (.'l:iii)or:!c. .1 .»• k -o: 5. (M.'iirhi!;!. \\'VM>»1(M". New Mexico •suinlicni pun") i'1-Vl.i^'i . (OunrK's: lii-.'i! :iii!o. Din.:: A:i::. lli«!.i!'.:o. Oioro. Socorro. (•|'...\r«. lOld;. . i.e.. <>!!;!>. 'I'oriVi.rO. (•'..••!•;.. 'iraii!. i.i::i()l::. lioo^ovoll.. \ iik'i.ci;i. Di' li.!»-.i. < • 11.:<I:i!111><-. Liii.i.. .-iviii). Oklahoma •.-oiiihcasl.cni pan) «20S.7(^-1 ••. (Ouni'uv: Ai(ik:i. Cli<H-i;i".-. .IOISM.^IO1!. Miirnlmll. ru.shiiiiiiahj Jir>.'.ii. Co-.:!. MrCuMiiin. Texas • L71L>:L>(H)-. DISTRICT NO. 12—SAN FRANCISCO 0,910,140 . Arizona ii'irihwcHorn pan • --l.r>-M . < "oiiinic-: A|>:u-hi». «m •": -B _ M(I!:.I\C. l>i'!:il. ^ inn... (•(/••Ofil.'iO. MiilifOp.i. N.!\ :ijo. "l'll\i!j );'.i. California (.V>:n.«•!•")). Idaho (M2.S'l:n. \ > l 7 07 RK( APITULATION. Kaliimil*'I population !>(<-. •>'/. /!>?'>. l-'otloml Reserve Disirici: NIL I liosion 7,159, ")").i \o. 2 New York I.:*, ;JMi. 17 I X... V> Philadelphia 0. S:ft. 177 X«i. 1 1 le\ eland "10, (Mi. ;):'> 1 X... 5 Kiehmond i).Siil.7:«) \o. (I -Ailania J). SM.">. :>70 Xn. 7 (hicairo !•">, O:JS. IIS Xo. S St. Louis !). 'AX). ;JS!) X«». 9 Minneapolis 5| I-V.». 217 Xo. 10 Kansas Cily 7, I l">. 710 Xo. II -Dallas * .">. 77«.i,-HO -Xo. 12 San i-'ranrisco <>, 910. I 10 Total 107, \2:\: (>S« Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

. 3 fe?WN*** ARK / ^ J n DALLAS^ I^ TEXAS FEDERAL RESERVE DISTRICTS ® fEDERALRESERVE BANK CITIES O FEDERAL RESERVE BRANCH CITIES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART I. Acceptances: Page. Amounts discounted by Federal Reserve Banks 173,174,180,185,186 Amounts purchased by Federal Reserve Banks 49-52,173,189,190-192 Amounts purchased from other Federal Reserve Banks 47-50,196-204 Bankers'— Discount rates on 13, 62,104,194 Discounted 160,173,174,180,186 Market for, development of 50 Open-market purchases 49, 50,173,186,189,192 Banks granted authority to accept up to 100 per cent of capital and surplus. 267-271 Discount rates on 62,104,192,194 Earnings on 91,169, 220 Foreign banking corporations 310 Holdings of 44,137,162-165,168 Maturities of 190,191,195 Open-market purchases of 49, 50,173,189,192 Rates, discount, on 13, 62,104,192-194 Rates of earnings on 91,169 Regulation A—Rediscounts under section 13 289 Regulation B—Open-market purchases 292 Regulation C—Member bank acceptances 293 Trade- Discount rates on 13, 62,104,194 Discounted 160,173,174,180,185 Open-market purchases 49, 50,173,189,192 Acts: Abolishing subtreasuries 326 Clayton Act, amendment to 324 Farm loan act, amendment to 325 Federal Reserve Bank notes in small denominations 325 Liberty bond acts, amendments to 325 Pittman A.ct 325 Postal sayings act, amendment to 324 State legislatures in opposition to par collection system 327 Trading with the enemy 326 Transportation act of 1920 326 War Finance Corporation act, amendment to 325 (See also Federal Reserve act; Revised Statutes.) Administrator, executor, etc., powers granted to national banks. (See Fiduciary powers.) Advisory Council, Federal. (See Federal Advisory Council.) Agricultural paper: Amounts discounted 17,173 Discount rates on 13, 60,104 Holdings. 17,160 Alabama Legislature, act of, in opposition to par collection system 329 Amendment to Clayton Act 315 Amendments to Federal Reserve act 315 Summary of all 316-326 Amendments to Revised Statutes 97, 326 Articles of association, foreign banking corporations 307 Assessment for expenses of Federal Reserve Board 224 Assets and liabilities. (See Resources and liabilities.) Bank debits 19 Bank notes, Federal Reserve. (See Federal Reserve Bank notes.) Bankers' acceptances. (See Acceptances.) Bills discounted and purchased. (See Discount and open-market operations.) Banks of issue, note circulation, deposits, and gold and silver holdings of, during the war 35-38 Bolshevik government, exchange transactions with 34 Bonds, United States. (See United States bonds.) „-.„ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

618 INDEX TO PART I. Branch banks: Federal Reserve Banks— Page. Directors and managers of. (See Federal Reserve Banks, branches of.) Opened during year 92 Operations of 92 Foreign— Foreign banking corporations 309 Of national banks ... 27 Of State institutions i 26 Buildings for Federal Reserve Banks 93 Cancellations 53-57 rknital: Federal Reserve Banks 137,146 Foreign banking corporations 308 Increase and decrease, Regulation I 303 State bank members 228-252 Certificates of indebtedness. (See Treasury certificates of indebtedness.) Chapman, W. T., resignation of, as secretary of Federal Reserve Board 102 Charts: Accommodation received from or extended to other Federal Reserve Banks 145 Currency received from and paid to member and nonmember banks by Federal Reserve Banks 134 Earning assets of Federal Reserve Banks 142 Gold settlement fund transactions 210, 211 Holdings of earning assets by Federal Reserve Banks 170,171 Net deposits, note circulation, and reserves of Federal Reserve Banks 143 Required and excess reserves of Federal Reserve Banks. 154 Check clearing and collection: . , • Acts of State legislatures in opposition to 327 Atlanta case in opposition to 65 Charges made by Nebraska bankers as to oppressive measures used 66 Letter to a United States Senator relative to 67 Number and amount of items handled 69, 216 Number of banks on par list 218 Operations of the system -..-.- 69,216 Opinion of Circuit Court of Appeals in Atlanta par collection case 330 Opposition to 64 Par list, number of banks on 218 Progress made during year 63 Regulation J 305 Senate resolution, letter of Federal Reserve Board replying to 335 State laws in opposition to. 65 Clayton Act: Amendment to 98, 315, 324 Regulation L 312 Clearing-house bank debits 19 Collateral notes discounted 173,180 Commodity paper, discount rates on 104 Commercial paper: Amount discounted 173,174 Discount rates 13, 60.104 Holdings of 160,161 Rediscounts and sales between Federal Reserve Banks 47-50,196-204 (See also Discount and open-market operations.) Condition statements: Federal Reserve Banks 137-172 Accommodation received from or extended to other Federal Reserve Banks 144 Deposits 44,139,152,155 Detailed statement 146 Earning assets 44,137,155,168 Holdings of— Discounted bills 44,137,156-161 Earning assets 137,168 Purchased bills 44,137,162-165 United States securities 137,166,167 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART I. 619 Condition statements—Continued. Federal Reserve Banks—Continued. Page. Z\Tote circulation 44,109, 111, 139,152,155 Rates of earnings on earning assets 172 Reserves 44,137,152,155 Resources and liabilities: By weeks 44,137 December 31, 1920 146 Member banks 82 Abstract of .... 253,254 Counties in Federal Reserve districts 610-614 Credit: Agricultural 15 Credit control, discussion of 11 Letters of, practice of issuing 55 Crop yields in 1920 ,. 9 Currency: Circulation of principal banks of issue during the war 35-38 Receipts and payments 132-136 Chart showing 134 (See also Federal Reserve Bank notes; Federal Reserve notes.) Customers' paper discounted 159,161,184 Debits to individual account 19 Deposits: Federal Reserve Banks 44,139,152,155 Chart showing 142 Foreign banking corporations 311 Government— Held by Federal Reserve Banks 78,139 Held by member banks 82 Principal banks of issue during the war 35-38 Time and savings, Regulation D 294 Directors of Federal Reserve Banks and branches: Class A, conference with Federal Reserve Board 101 List of 281-287 Directory: Federal Reserve Banks 281-287 Federal Reserve Board 281 Federal Advisory Council 288 Discount and open-market operations of Federal Reserve Banks: Acceptances— Bankers'— Amounts discounted. 160,173,180,186 Open-market purchases 49, 50,173,189,192 Trade- Amount discounted 160,173,180,185 Open-market purchases 49, 50,173,189,192 Agricultural paper 17,160,173 Bills discounted for State bank members 184 Collateral notes discounted and held 159,161,173,184 Commercial paper discounted and held 160,161,173,174,180 Customers' paper discounted and held 159,161,180,184 Earnings, amounts and rates 59, 91,168, 220 Holdings of discounted bills. 44,137,156-161,184 Live stock paper 160 Maturities— Acceptances bought 190 Bills discounted ., 176-180,188 Paper held 157,163 Paper purchased 190 Member banks— Amounts discounted for. 176-186 Number accommodated 181,187 Open-market purchases 49, 50,173,189,192 Paper discounted and held 157,163,177-186 Paper.secured by Government obligations 184 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

620 INDEX TO PART I. Discount and open-market operations of Federal Reserve Banks—Contd. Rates of discount 13, 60,104,186,188,192,194 Acceptances 62,104,192,194 Bills discounted 13, 60,104,180,186,188 Bills purchased 62,104,192,194 Rediscounts and sales between Federal Reserve Banks 47-50,196-204 United States certificates of indebtedness purchased 173, 205 Volume of— By classes 173,174 By maturities 176-180 By months 175 By rates 186 By States 181-183 War paper discounted 184 Discount rates: Advance in 12 Average rates charged 180,188,194 Changes in, during 1920 57-63 Discussion of 12, 57-63 Graduated rates 58, 63 High and low for each year since organization of Federal Reserve Banks. 104-107 In effect Dec. 31 13 Normal rates charged 186,192 Progressive rates 58, 63 Districts, Federal Reserve. (See Federal Reserve districts.) Dividends paid by Federal Reserve Banks 90, 222 Earning assets of Federal Reserve Banks 137,142,155,168 Changes in rates of earnings during year 90,172 Chart showing movement of 142 Holdings of 137,155,168 Earnings of Federal Reserve Banks: Acceptances, amounts and annual rate 91,169, 220 Amounts and annual rate on each class of earning assets 169,172, 220 Annual rate on total investments 91,169,172 Discounts, amounts and annual rate 168,169, 220 Dividends 90, 222 Franchise tax, reserve set aside for 90, 222 Progressive rates, earnings at 59 Rates of earnings on investments 91,169,172 Surplus fund, amount carried to 90, 222 United States securities, amounts and annual rate 169, 220 Earnings and expenses of Federal Reserve Banks 87, 220-223 Eddy, W. L., appointed assistant secretary of Board 102 Edge Act: Regulation K 307 Supervision of corporations formed under 23 Emerson, R. G., appointed assistant to Governor of Board 102 Employees: Federal Reserve Banks 88, 272-274 Federal Reserve Board 101,275-278 Examiners, national bank, salaries of 278-280 Examinations, foreign banking corporations 312 Exchange, foreign. (See Foreign exchange.) Exchange transactions with Soviet Russia 34 Executor, administrator, etc., powers granted to national banks. (See Fiduciary powers.) Expenses: Federal Reserve Banks 87, 220-223 Federal Reserve Board 102, 224-227 Fiscal agency department 223 Exports: United States, United Kingdom, France, Italy, and Japan 39 (See Imports and exports.) Farm loan act, amendment to 325 Federal Advisory Council: Meetings of 101 Members of 288 Recommendation of. (See Index to Part III, p. 638.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART I. 621 Federal Reserve Act: Acts in effect amending— Page- Appropriation act of May 29, 1920 326 Clayton Act 324 Farm loan act 325 Liberty bond act 325 Pittman Act 325 Postal savings act 324 Sec. 5200, Revised Statutes .* 326 Trading with the enemy act 326 Transportation act of 1920 326 War Finance Corporation Act 325 Amendments to 97, 315 Board suggests no further amendments 99 Summary of all amendments to 316-326 Sec. 3—Branches of Federal Reserve Banks 319 Sec. 4— Assistants to Federal Reserve agents 319 Election of Federal Reserve Bank officers 321 Sec. 7—Earnings of Federal Reserve Banks 323 Sec. 9—Membership of State banks and trust companies. 319 Sec. 10—Eligibility of ex-board members to serve member banks .... 323 Sec. 11—Reserves 316 Sec. 11 (k)—Fiduciary powers of national banks 321 Sec. 11 (m)—Rediscounts of loans in excess of 10 per cent secured by Government bonds or notes 323 Sec. 13— Acceptances 316, 317 By member banks 320 Advances to member banks 318 Clearing and collection for nonmember banks 319 Deposits with Federal Reserve Banks 317 Discount of notes, drafts, and bills 317 Member banks as insurance and real estate agents 318 Rediscounts 317 Security for Federal Reserve notes 318 (See also Revised Statutes; War Finance Corporation Act.) Sec. 14— Banking accounts with foreign correspondents 318 Foreign agencies of Federal Reserve Banks 320 Graduated discount rates 324 Sec. 16— Deposits of gold with Treasurer 320 Issuance of Federal Reserve notes in large denominations 322 Issue of Federal Reserve notes against gold 320 Sec. 17—Deposits of Government bonds with Treasurer 320 Sec. 19— Balances with nonmember banks 320 Reserves 316, 320 Reserves of national banks in outlying districts 322 Sec. 22— Commissions for obtaining loans 322 Disclosure of confidential information 322 Interest on deposits of officers, directors, or employees -.. 323 Liability for violating provisions 323 Loans and gratuities to bank examiners 322 Over-certification of checks, embezzlements, etc 323 Purchases from and sales to directors 322 Salaries or fees of directors, officers, and employees 321 Sec. 24—Loans on real estate 318 Sec. 25— Foreign banking business 318 Investment by national bank in foreign banking corporation 324 Sec. 25 (a)—Edge Act corporations :.. 324 Sec. 27—Engraved signatures on national bank notes 323 Federal Reserve agents: List of 281-287 Reports of 359-596 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

622 INDEX TO PART i. Federal Reserve agents—Continued. Tage. Salaries of 272-274 Statement of Federal Reserve notes 121,125 Federal Reserve Bank notes: In circulation 44,139 Issuance of $1 and $2 denominations (Pittman Act) 325 Issued . 123 Under provision of Pittman Act 131 On hand 129 Outstanding 130 Printed 128 Redeemed 129 Federal Reserve Banks: Acceptances purchased. (See Acceptances.) Branches of 92 Directors and managers of— Baltimore 283 Birmingham 283 Buffalo 282 Cincinnati 232 Denver 286 Detroit '... 284 El Paso 236 Houston 286 Jacksonville 284 Little Rock 235 Los Angeles 287 Louisville 285 Memphis 285 Nashville 284 New Orleans 283 Oklahoma City 286 Omaha 286 Pittsburgh * 282 Portland 287 Salt Lake City 237 Savannah Agency 284 Seattle 287 Spokane. 287 Opened during year 92 Operations of 92 Buildings for 93 Condition of. (See Condition statements.) Directors and officers 281-287 Discount and open-market operations of. (See Discount and open-market operations.) Discount rates. (See Discount rates.) Dividends paid 90, 222 Earning assets of. (See Earning assets.) Earnings of. (See Earnings.) Earnings and expenses of 87-90,220-223 Employees, number and salaries 88, 272-274 Fiscal agency operations 72-78, 223 Expenses 223 Sub treasuries taken over 73 Franchise tax paid to Government 90, 222 Governors of— List of 281-287 Salaries of 272-274 Officers and directors of 281-287 Officers and employees, number and salaries 88, 272-274 Profit and loss account 222 Rediscount operations between 47-50,144,196-204 Reserves 46,137,152,155 Resources and liabilities , 40-45,137,146 Salaries of officers and employees 272-274 Surplus account - 90,222 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART I. 623 Federal Reserve Board: Page. Assessment for expenses „ 102, 224 Chapman, W. T., resignation of, as secretary 102 Directors, Class A, conference with 101 Directory of 281 Eddy, W. L., appointed assistant secretary 102 Emerson, R. G., appointed assistant to Governor 102 Employees of, salaries of 275-278 Expenses of....J L 102, 224-227 Federal Advisory Council, conferences with 101 Glass, Carter, retirement as chairman ex officio 101 Governor of, W. P. G. Harding redesignated 102 Governors of Federal Reserve Banks, conferences with 101 Harrison, G. L., resignation of, as general counsel 102 Herson, J. F., appointed chief of Division of Examination 102 Houston, David F., appointed chairman ex officio 101 Hoxton, W. W., appointed executive secretary 102 Law division 99 Logan, W. S., appointed general counsel 102 Members of 281 Moehlenpah, Henry, retirement of, as member 102 Officers of 281 Officers and employees, number and salaries 275-278 Organization, staff, etc 101, 275 Paddock, W. W., resignation of, as chief of Division of Examination 102 Platt, Edmund, appointed member 101 Designated as vice governor 102 Receipts and disbursements 224-227 Senate resolution, reply to 335 Senator, letter to, relative to check clearing 67 Smead, E. L., appointed chief of Division of Reports and Statistics 101 Strauss, Albert, resignation of, as member 101 Wills, D. C, appointed member. 102 Federal Reserve districts: Counties in divided States 610-614 Description of. 610-614 Map showing outline of 615 Population of 610-614 Federal Reserve notes: Circulation 44,109, 111, 139,152,155 Chart showing 143 Collateral held as security for outstanding 109, 111, 125 Destroyed by Comptroller of the Currency 120 Eligible paper held as security for outstanding 110, 111, 125 Federal Reserve agents' accounts '. 121,125 Gold and gold certificates held as security 109, 111, 125 Held by Federal Reserve Banks 108, 111 Interdistrict movement of 126 Issued to Federal Reserve Banks 116,123 Issued and redeemed by Federal Reserve agents 118,121 Mutilated, destroyed by Comptroller of the Currency 120 On hand in Washington 115 Outstanding 108, 111, 117,118,121,125 Printed 114 Received by Federal Reserve agents from Comptroller of the Currency. 121,125 Received from other Federal Reserve Banks 126 Redeemed and retired 116,118 Returned to Federal Reserve agents by or for account of Federal Reserve Banks 123 Returned to other Federal Reserve Banks 126 Returned by Federal Reserve agents to Comptroller of the Currency for destruction 122 Shipped to Federal Reserve agents and sub treasuries 114 Fiduciary powers: Granted to national banks 255-266 Regulation F 297 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

624 INDEX TO PART I. Page. Fiscal agency operations of Federal Reserve Banks 72-78, 223 Subtreasury functions 72 Treasury certificates. (See Treasury certificates.) Foreign banking corporations: Regulation K 307 Supervision of 23 Foreign banks, note circulation, deposits, and gold holdings of principal banks of issue during the war 35-38 Foreign branches: National banks 27 State institutions 26 Foreign exchange 27-34 Fluctuations in 32 Soviet Russia, transactions with 34 Foreign trade 19, 38 Franchise tax paid by Federal Reserve Banks to Government 90,222 Farm land, loans on, Regulation G 299 Georgia Legislature, act of, in opposition to par collection system 328 Glass, Carter, retirement of, as chairman ex officio of Federal Reserve Board 101 Gold: Holdings of principal banks of issue during the war 35-38 Reserves of Federal Reserve Banks 46,137,152,155 Gold settlement fund: Average weekly volume of clearings and transfers, 1915-1920 71 Charts showing transactions 210, 211 Expense of operating 71 Net changes in ownership of gold 212-215 Summary of transactions 70, 206 Weekly operations 208 Government bonds. (See United States bonds.) Government deposits, holdings of 78, 82,139 Government, Federal Reserve Banks as fiscal agents of 72-78, 223 Governor of Federal Reserve Board, Harding, W. P. G., redesignated 102 Governors of Federal Reserve Banks: Conferences with Federal Reserve Board 101 List of 281-287 Salaries of 272-274 Graduated rates of discount. (See Discount rates.) Harding, W. P. G., redesignated Governor of Federal Reserve Board 102 Harrison, G. L., resignation of, as general counsel 102 Herson, J. F., appointed chief of Division of Examination 102 Houston, David F., appointed chairman ex officio of Federal Reserve Board.. 101 Hoxton, W. W., appointed executive secretary of Federal Reserve Board 102 Interest rates. (See Discount rates.) Law division, Federal Reserve Board 99 Laws. (See Acts.) Legislatures of States, acts of, in opposition to par collection system 327 Letters of credit, practice of issuing 55 Liberty bond acts, amendments to 325 Liberty bonds. (See United States bonds.) Live stock paper: Discount rates on 13, 60,104 Held by Federal Reserve Banks 17,18,160 Loans on real estate, Regulation G 299 Logan, W. S., appointed general counsel of Federal Reserve Board 102 Louisiana Legislature, act of, in opposition to par collection 327 Managers of branches of Federal Reserve Banks. (See Federal Reserve Banks.) Map showing outline of Federal Reserve districts 615 Maturities: Acceptances purchased 190,191,195 Bills discounted 176-180,188 Paper held 157,163 Paper purchased 190 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART I. 625 Page. Member banks: Accommodation at Federal Reserve Banks 82 Comparison between number, capital and surplus, and total resources of member and nonmember banks 84 Condition reports— Abstract of 253, 254 Changes in 78-84 National banks— Number, capital and surplus, and total resources 84 Paper discounted for 184 Number accommodated through discount of paper 181,187 Number in each district 218 Number in each State 181 Paper discounted for 176-186 State bank members, list of 228 Regulation C 293 Regulation H 300 Reserve balances 82,139 Resources and liabilities 82 State banks and trust companies— Abstract of condition reports 253, 254 Bills discounted for 184 Membership in system 84, 228-252 Number, capital and surplus, and total resources 84 (See also National banks; State banks.) Mississippi Legislature, act of, in opposition to par collection 327 Moehlenpah, Henry, retirement of, as member of Federal Reserve Board 102 National banks: Bills discounted for 184 Branches of, foreign 27 Examiners of, salaries 278-280 Fiduciary powers granted to 255-266 Number, capital and surplus, and total resources 84 Nonmember banks: Eligible for membership 84 Number of, on par list 218 Notes. (See Federal Reserve notes; Federal Reserve bank notes.) Officers and directors of Federal Reserve Banks 281-287 Officers and employees: Federal Reserve Banks 88, 272-274 Federal Reserve Board 275-278, 281 One hundred per cent of capital and surplus, list of banks granted authority to accept up to 267-271 Open-market operations of Federal Reserve Banks. (See Discount and openmarket operations.) Opinion of Circuit Court of Appeals in Atlanta par collection case 330 Organization certificate, foreign banking corporations 307 Paddock, W. W., resignation of, as chief of Division of Examination 102 Par collections. (See Check clearing and collection.) Pittman Act 325 Federal Reserve bank notes issued under 131 Platt, Edmund, appointed member of Federal Reserve Board 101 Designated as vice governor 102 Population of Federal Reserve districts 610 Postal sayings act, amendment to 324 Prices, discussion of 6,18, 39 Production in 1920 4 Profit and loss account of Federal Reserve Banks 222 Progressive discount rates. (See Discount rates.) Purchased bills. (See Acceptances.) Rates: Discount. (See Discount rates.) Earnings on each class of earning assets 91,169 Earnings on total earning assets 91,172 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

626 INDEX TO PAST I. Page. Readjustment process 1.10 Real estate loans, Regulation G 299 Rediscounts and. sales of bills between Federal Reserve Banks 47-50,144. ] 96-204 Rediscounts under section 11, Regulation A 289 Regulations of the Federal Reserve Board 288-314 A. Rediscounts under section 11 289 B. Open-market purchases under section 14 292 0. Acceptance by member banks of drafts and bills of exchange 293 D. Time deposits and savings accounts 294 E. Purchase of warrants. . 295 F. Trust powers of national banks 297 G. Loans on real estate 299 H. Membership of State banks and trust companies 300 1. Increase or decrease of capital stock 303 J. Check clearing and collection 305 K. Banking corporations authorized to do foreign banking business under section 25 (a) 307 L. Interlocking bank directorates under the Clayton Act 312 Reserve balances of member banks 82,139 Reserves of Federal Reserve Banks 44, 46,137,152.155 Chart showing 143 Deficiency in 46 Excess reserves (free gold) 152 Reserve ratio 44, 47,152,155 Resources and liabilities: Federal Reserve Banks 14,40-45,137,146 Member banks 82, 253, 254 State bank and trust company members 228-252 Revised Statutes, amendments to 97, 326 Russia, exchange transactions with 34 Salaries: Federal Reserve Banks 88, 272-274 Federal Reserve Board 275-278 National-bank examiners 278-280 Savings accounts, Regulation D 294 Senate resolution relative to check clearing 335 Smead, E. L., appointed chief of Division of Reports and Statistics 101 South Dakota Legislature, act of, in opposition to par collection 328 Staff. (See Employees.) State bank and trust companies: Admitted to system 84, 228-252 Eligible for membership 85 Regulation H 300 State bank and trust company members: Abstract of condition reports 253-254 Bills discounted for 184 Capital, surplus, and total resources 84,228-252 Number of 84, 252 Resources and liabilities 228-252 State laws in opposition to par collection 327 Strauss, Albert, resignation of, as member of Board 101 Surplus account of Federal Reserve Banks 90, 222 Sub treasuries: Act abolishing 98, 326 Taken over by Federal Reserve Banks 73 Tax, franchise, paid by Federal Reserve Banks to Government 90, 222 Telegraph service, leased wire system 71 Thrift stamps sold by Federal Reserve Banks 77 Time deposits and savings accounts, Regulation D 294 Title, foreign banking corporations 307 Trade acceptances. (See Acceptances.) Transportation Act 97 Treasury certificates of indebtedness: Advance in rates 12 Allotments of • 75 Bills discounted, secured by 159 Discount rates on paper secured by 13, 60,104 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

I1STDEX TO PAET I. 627 Treasury certificates of indebtedness—Continued. Holdings of— Page- By Federal Reserve Banks 137,159,167 By member banks 82 Issued in anticipation of tax payments 75 Purchased by Federal Reserve feanks 173, 205 Trust companies. (See State banks and trust .companies.) Trust powers. (See Fiduciary powers.) United States bonds: Amounts purchased by Federal Reserve Banks 173 Discount rates on paper secured by 13, 60, .104 Held by Federal Reserve Banks. .* 137.167 Held by member banks 82 Holdings of paper secured by 44,159 Volume of paper discounted, secured by 180,184 United States securities: Discount rates on paper secured by 13, GO, 104 Earnings, amount and annual rate on 91,169, 220 Held by Federal Reserve Banks 137,166-168 Held by member banks .. 82 Paper secured by. 159,184 Purchases by Federal Reserve Banks 173, 205 Rates of earnings on 169, 220 Vice governor of Federal Reserve Board, Edmund Platt designated 102 War Finance Corporation Act, amendment to 325 War Finance Corporation bonds, discount rates on paper secured by. 63 Tar paper- Discount rates •:...- 60,104 Held by Federal Reserve Banks 44,137,159 Held by member banks .--. 82 Volume discounted 180,184 War savings certificates sold by Federal Reserve Banks 77 Warrants, purchase of, Regulation E 295 Wills, D. C., appointed member of Federal Reserve Board .- / •;...'.' 102 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART II. REPORTS OF FEDERAL RESERVE AGENTS. Page, District No. 1—Boston 361-378 Acceptances— Bankers' 364,366,375 Trade 366, 375 Balance sheet, comparative 370 Bankers' acceptances 364, 366, 375 Banking conditions 362 Business conditions 361 Certificates of indebtedness 369 Charts— Movement of earning assets 371 Net deposit liability, Federal Reserve note circulation, cash reserves, and reserve ratio 374 Clearing and collection 367, 368, 378 Currency receipts and shipments 377 Deposit and note liabilities, movement of 372 Deposits, member banks 367 Discount operations 364 Discount rates 365 Dividends 363 Earning assets, movement of 372 Earnings 376 Expenses 363,376 Federal Reserve notes 367 Financial results of operation 363 Gold and cash reserves, Federal Reserve note and net deposit liabilities.. 372 Loans and discount operations 364 Member banks 368 Movement of asset and liability items 372 National banks, new 368 Paper discounted and bought, volume of 375 Rates, discount 365 Reserve position 367 Reserves 367, 372 Resources and liabilities 370 Savings securities 369 State bank members 368 Trade acceptances 366 Treasury financing 369 United States securities 367, 369 District No. 2—New York 379-403 Acceptances— Bankers' 382,385,389,399 Trade 399 Balance sheet, comparative 394 Bankers' acceptances 382,385.389, 399 Bonds, Government 393 Buffalo branch 392 Certificates of indebtedness 380, 383, 392 Charts— Movement of earning assets 395 Net deposit liability, Federal Reserve note circulation, cash reserves and reserve ratio 398 Clearing house associations 388 Clearing and collection 387,403 628 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART II. 629 District No. 2—New York—Continued. Page. Currency receipts and shipments 402 Deposit and note liabilities 396 Deposits, Government 393 Disbursements, Government 393 Discount rates 381, 385 Earning assets 396 Earnings and expenses 384, 400 Expenses 384, 400 Federal Reserve bank notes 386 Federal Reserve notes 386 Fiduciary powers granted to national banks. 390 Fiscal agency operations 392 Foreign banks, relations with 390 Argentina 391 Bank of England 390 Bank of France 391 Bank of Japan 391 Bank of Spain 391 De Javasche Bank 391 De Nederlandsche Bank 391 Gold, German 390 Gold settlement fund 388 Government deposits 393 Interest rates 381 International financial arrangements 390 Loans and investments 384 Member banks— Bills purchased for, in open market 389 State bank membership 390 Member banks relations department 389 Movement of earning assets 396 Movement of gold and cash reserves, Federal Reserve note and net deposit liabilities 396 Paper discounted and bought, volume of 399 Purchases of bills in open market for member banks 389 Rediscounts 380, 384 Reserve position 386 Reserves, movement of gold and cash 396 Resources and liabilities 394 State bank and trust company members 390 Silver shipments to Orient 391 Subtreasury functions taken over 386 Telegraphic transfer system 389 Trade acceptances 385, 399 District No. 3—Philadelphia 404-423 Acceptances— Bankers' 406,410,420 Permission to accept up to 100 per cent 414 Trade 410,420 Balance sheet, comparative 415 Bankers' acceptances 406, 410,420 Bills dicsounted for members 406 Bonds, Government 414 Business conditions 404 Certificates of indebtedness 414 Charts— Movement of earning assets 418 Net deposit liability, Federal Reserve note circulation, cash reserves and reserve ratio 419 Checks, Government 414 Clearing and collection 411,423 Coupon department 412 Currency receipts and. shipments 422 Deposit and note liabilities 416 Directors 412 Discount operations 408 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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INDEX TO PART II. 631 District No. 4—Cleveland—Continued. Page- Officers 428 Paper discounted and bought, volume of 435 Pittsburgh branch, operations of 428 Quarters of bank 428 Rediscounts 424 Reserve position of bank 425 Resources and liabilities 430 State banks and trust companies 425, 426 District No. 5—Richmond 439-457 Acceptances— Bankers' 445, 454 Trade 445, 454 Balance sheet, comparative 449 Baltimore branch, operations of 446 Banking conditions in district 448 Bills discounted and bought 454 Branch-bank operations 446 Business conditions in district •. 448 Campaign for par points ,- 447 Certificates of indebtedness 448 Charts— Movement of earning assets 452 Net deposit liability, Federal Reserve note circulation, cash reserves and reserve ratio 453 Clearing and collection 447, 457 Coupons from United States securities 442 Currency receipts and shipments 456 Deposit and note liabilities 450 Discount operations " 440 Dividends 443 Earning assets, movement of 450 Earnings 442, 455 Employees 446 Examination department operations 446 Expenses 442,455 Federal Reserve bank notes 446 Federal Reserve notes 446 Financial results of operation 442 Fiscal agency operations 448 Gold settlement-fund operations 447 Leased-wire service 441 Member banks— National 446 State 446 Movement of earning assets 450 Movement of gold and cash-reserves, Federal Reserve note and net deposit liabilities 450 Nonmember banks in district 446 Paper discounted and bought, volume of 454 Par points, campaign for 447 Rediscounts 440 Reserve position 445 Resources and liabilities 449 Services rendered to member banks 439 State bank members 446 Transfer of funds by wire 441 District No. 6—Atlanta ' 458-476 Acceptances— Bankers' 460, 473 Permission to accept up to 100 per cent 463 Trade 460,473 Balance sheet 468 Banking conditions in district 459 Birmingham branch 466 Branch banks 466 Business conditions in district 458, 461 Certificates of indebtedness. * 464 Digitized for FRA4S5E52R5 °—21 41 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

632 INDEX TO PART II. District No. 6—Atlanta—Continued. Charts— Page. Movement of earning assets 469 Net deposit liability, Federal Reserve note circulation, cash reserves, and reserve ratio 472 Clearing and collection 459, 467, 476 Coupons redeemed 468 Currency receipts and shipments 475 Deposit of Treasury funds in banks 464 Deposits, net 470 Discount operations 459, 473 Earning assets, movement of 470 Earnings and expenses 459, 474 Examinations of State member banks 463 Expenses 474 Federal Reserve bank notes 465 Federal Reserve notes 464 Fiduciary powers granted to national banks 463 Financial results of operation ». 459 Fiscal agency operations 464 Gold settlement fund 467 Government securities 464 Jacksonville branch 466 Member banks— National 462 Reserves of 463 State 462 Movement of earning assets 470 Movement of gold and cash reserves, Federal Reserve note and net deposit liabilities '. 470 Nashville branch 467 National banks 462 New Orleans branch 466 Paper discounted and bought, volume of 473 Position of commercial banks with regard to financing 465 Rediscounts 461 Reserve position 460 Reserves— Member banks 463 Movement of 470 Resources and liabilities 468 Savannah agency 467 Services to member banks 459 State bank members 462 Treasurer's general account 468 War Finance Corporation 464 War-savings certificates «. 464 District No. 7—Chicago 477-493 Acceptances— Bankers' 479, 490 Trade 479,490 Balance sheet 485 Bank relations department 481 Banking conditions 477 Branch bank, Detroit 484 Certificates of indebtedness 481 Charts— Movement of earning assets 488 Net deposit liability, Federal Reserve note circulation, cash reserves, and reserve ratio 489 Clearing and collection 483, 493 Collateral department 484 Currency receipts and shipments 492 Deposits, net 479, 486 Detroit branch 484 Directors 484 Discount operations 478 Discount rates 479 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART II. 633 District No. 7—Chicago—Continued. Page. Dividends 478 Earning assets, movement of 479, 486 Earnings 477, 491 Examinations, department of 480 Expenses 491 Federal Reserve bank notes 480 Federal Reserve clearing system 483, 493 Federal Reserve notes 480 Fiduciary powers granted to national banks 480 Financial results of operation 477 Fiscal agency operations 481 Foreign accounts. . . 482 Gold settlement fund operations 482 Government savings securities 482 Internal organization 484 Member banks 480 Movement of earning assets 486 Movement of gold and cash reserves, Federal Reserve note and net deposit liabilities 486 National banks 480 Officers 484 Paper discounted and bought, volume of 490 Position of commercial banks 482 Rediscounts 478 Reserve position 480 Reserves, movement of 486 Resources and liabilities 485 Savings securities 482 State bank members 480 Statistical and analytical department 481 Sub treasury functions taken over 482 Territory of Detroit branch 484 Transfer of funds by mail and telegraph 483 Transit operations 483 District No. 8—St. Louis 494-514 Acceptances— Bankers' 498, 511 Trade 498, 511 Agricultural conditions 495 Balance sheet 506 Branches of Federal Reserve Bank 503 Business conditions in district 494 Cash reserves, movement of 504 Certificates of indebtedness 504 Charts— Movement of earning assets 507 Net deposit liability, Federal Reserve note circulation, cash reserves and reserve ratio 510 Clearing and collection 500, 514 Coupons of United States handled 506 Currency receipts and shipments 500, 513 Deposit of Treasury funds with banks 504 Discount operations 497 Discount rates 498 Dividends 496 Earning assets, movement of 508 Earnings 496, 512 Examination of State bank members 502 Expenses 496, 512 Federal Reserve bank notes 500 Federal Reserve notes 499 Fiduciary powers granted to national banks 501 Financial results of operation 496 Fiscal agency operations 504 Foreign accounts 502 Gold settlement fund operations 501 Liberty bonds 505 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

634 INDEX TO PART II. District No. 8—St. Louis—Continued. Page. Little Rock branch 503 Louisville branch 503 Member banks— National 502 State banks and trust companies 502 Memphis branch 503 Movement of earning assets 508 Movement of gold and cash reserves, Federal Reserve note and net deposit liabilities 508 National banks 502 Nonmember banks, relations with 502 Par list, additions to 500 Paper discounted and bought, volume of 511 Rediscounts 497 Reserve position 496 Resources and liabilities 506 Shipments of coin and currency 500, 513 State bank members 502 Subtreasury functions taken over 506 Victory Liberty loan bonds 505 War Finance Corporation 505 War savings stamps 504 Wire transfers of funds 501 District No. 9—Minneapolis 515-533 Acceptances— Bankers' 530 Trade 530 Balance sheet 520, 525 Banking conditions in district 516 Branch banks 524 Business conditions in district 515 Certificates of indebtedness 522 Charts—• Movement of earning assets 528 Net deposit liability, Federal Reserve note circulation, cash reserves and reserve ratio 529 Clearing and collection 520, 533 Crop conditions 515 Currency receipts and shipments 519, 532 Deposits, Treasury funds with banks 522 Discount operations 517 Discount rates 517 Dividends 520 Earning assets, movement of 526 Earnings 520, 531 Employees 524 Examination department 524 Expenses 520, 531 Federal Reserve bank notes 519 Federal Reserve notes 518 Financial results of operation 520 Fiscal agency operations 522 Gold holdings 519 Gold settlement fund 520 Helena branch 524 Leased wire system 521 Liberty bonds 522 Loans and discounts 517 Member banks 523 Movement of earning assets 526 Movement of gold and cash reserves, Federal Reserve note and net deposit liabilities 526 Nonmember banks 524 Paper discounted and bought, volume of 530 Rediscount operations 517 Resources and liabilities 525 State bank members and nonmembers 523 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART II. 635 District No. 9—Minneapolis—Continued. Page- Sub treasury functions taken over 523 Treasury deposits 522 Wire transfers of funds 1 521 District No. 10—Kansas City 534-553 Acceptances— Bankers' 538, 550 Trade 538, 550 Balance sheet w 545 Banking quarters 535 Branches of Federal Reserve Bank 543 Business conditions 534 Certificates of indebtedness 535 Charts- Movement of earning assets 548 Net deposit liability, Federal Reserve note circulation, cash reserves and reserve ratio 549 Clearing and collection 539, 553 Currency department 543 Currency receipts and shipments 552 Denver branch 544 Directors 542 Discount operations 537 Discount rates 536 Earning assets, movement of 546 Earnings and expenses 535, 551 Employees 542 Expenses 535, 551 Federal Reserve bank notes 541 Federal Reserve notes 541 Fiduciary powers granted to national banks 542 Financial results of operation 535 Fiscal agency operations 540 Internal organization of bank 542 Investments 538 Library department 545 Member banks 541 Movement of earning assets 546 Movement of gold and cash reserves, Federal Reserve note and net deposit liabilities ! 546 Officers 542 Oklahoma City branch 544 Omaha branch 544 Progressive discount rates 536 Quarters of bank 535 Reserve position 539 Resources and liabilities 545 State bank members 535 Statistical department 545 Subtreasury functions taken over 541 Transit operations 539 District No. 11—Dallas 554-573 Acceptances— Bankers' 556, 571 Permission to accept up to 100 per cent 559 Trade 556, 571 Balance sheet 566 Banking conditions in district 554 Banking quarters 561 Branches of Federal Reserve Bank 563 Business conditions in district 564 Certificates of indebtedness 561 Charts- Movement of earning assets 567 Net deposit liability, Federal Reserve note circulation, cash reserves and reserve ratio 570 Clearing and collection 557, 573 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

636 INDEX TO PART II, District No. 11—Dallas—Continued. Page. Currency receipts and shipments 573 Discount operations 556 Dividends 555 Earning assets, movement of 568 Earnings and expenses 555, 572 El Paso branch 563 Examination of State banks 561 Expenses 555, 572 Federal Reserve bank notes 559 Federal Reserve notes 559 Financial results of operation 555 Fiscal agency operations 561 Houston branch 563 Liberty bonds 562 Louisiana, legislation in 569 Member banks 558 Member banks relations department 559 Movement of earning assets 568 Movement of gold and cash reserves, Federal Reserve note and net deposit liabilities 568 National banks 558 Paper discounted and bought, volume of 558 Post office established in bank 558 Quarters of bank 561 [Rediscounts 556 Reserve position 557 Resources and liabilities 566 State bank members 559, 560 Time schedule. 558 War savings securities 562 District No. 12—San Francisco 574-596 Acceptances— Bankers' 593 Trade 593 Agricultural conditions 584 Balance sheet 588 Banking quarters 583 Branches of Federal Reserve Bank 581 Business conditions in district 584 Certificates of indebtedness 578 Charts— Movement of earning assets 589 Net deposit liability, Federal Reserve note circulation, cash reserves, and reserve ratio 592 Clearing and collection ; 580, 596 Currency receipts and shipments 577, 595 Deposit of Treasury funds with banks 579 Discount operations 575 Discount rates. 575 Dividends 575 Earning assets, movement of 590 Earnings 575, 594 Employees 584 Examinations of member banks 582 Expenses 575, 594 Federal Reserve bank notes 574, 578 Federal Reserve notes 574, 577 Fiduciary powers granted to national banks 581 Financial results of operation 574 Fiscal agency operations 578 Gold settlement fund 580 Imports and exports 587 Internal organization of bank 584 Labor conditions 588 Liberty loan, Victory 578 Los Angeles branch - 581 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART II. 687 District No. 12—San Francisco—Continued. Member banks— Page- National 581 State 581 Movement of earning assets 590 Movement of gold and cash reserves, Federal Reserve note and net deposit liabilities 590 National banks 581 Officers 584 Paper discounted and bought, volume of 593 Portland branch 581 Quarters of bank 583 Rediscounts 575 Reserve position 578 Resources and liabilities 593 Salt Lake City branch 581 Seattle branch 581 Spokane branch 581 State bank members 581 Subtreasury functions taken over 583 Treasury funds deposited with banks 579 Victory Liberty loan 578 War savings stamps 579 Wire transfers of funds 581 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART III. Acceptances, "bankers: Page. Rates of discount 600 Open market purchases 600 Amendment to Federal Reserve Act. (See Federal Reserve Act.) Balances. (See Deposits.) Bank balances or bank deposits. (See Deposits.) Bonus bill 603 Budget system, United States Government 603 Certificates of indebtedness. (See United States.) Collateral for Federal Reserve notes, restricted 608 Collateral for member banks direct loans should be taken at market value 607 Commercial paper rates. (See Rate of discount.) Credit control 604 Causes of expansion of Federal Reserve notes 602 Curtailment of credit 602 Effectiveness of 6 per cent rate 601 Federal Reserve note issue policy 608 Methods of 606 Progressive rates of rediscount charged by Federal Reserve Banks on excessive lines of member banks, amendment to Federal Reserve Act. . . . 601 Relation to volume of goods 603 Strengthen reserves of Federal Reserve Banks 602 Criticism of note issue policy 608 Currency. (See Federal Reserve notes.) Deflation. (See Credit control.) Deposits, member banks: Increase 1913 to 1919 604 " Due from " foreign banks should be deductible in figuring reserves 602 Rate of interest paid 600 Differential rates. (See Rate of discount.) Discount rates. (See Rate of discount.) Essential credits. (See Credit control.) Essential production 604 Expansion of credit and Federal Reserve notes. (See Credit control; Federal Reserve notes.) Federal Reserve act, amendment to permit Federal Reserve Banks to establish maximum rediscount lines for member banks and to charge progressive rates on excess borrowings 601 Federal Reserve Banks, inter-reserve bank rediscounts 607 Federal Reserve notes: Collateral for, restricted 608 Criticism of note issue policy 608 Elasticity should not be impaired 608 Reduction of, to control credit 606 Causes for expansion 602 Methods to control expansion of 608 Tax to control expansion of 608 Amount limited for each Federal Reserve Bank 608 Transportation charges on shipments of 608 Foreign bank balances should be deductible in figuring reserves of member banks 602 Government. (See United States.) Inflation. (See Credit control.) Inter-reserve bank rediscount policy 607 Interest. (See Rate of interest.) Kemmerer, Prof., of Princeton, statistics 604 Labor conditions, cause for expansion of Federal Reserve notes 602 Legal opinions, foreign bank balances should be deductible from "Due to banks " in figuring reserves 602 Liberty loan bonds. (See United States.) Liquidation. (See Credit control.) Loans of member banks (direct), collateral for same should be taken at market value 607 Digitized for FRAS6E3R8 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART III. 639 Member banks: Page- Bankers' acceptances as secondary reserve 600 Collateral on their notes should be taken at market value 607 Should discourage credit for nonessential uses 602, 603 Foreign,bank balances should be deductible from "Due to banks" in figuring reserves 602 Rate of interest paid on deposits 600 To have maximum rediscount line with Federal Reserve Banks and to be charged progressive rate on excess borrowings, amendment to Federal Reserve Act... „ . ^ 601 Nonessential credits. (See Credit control.) Nonessential production 604 Note issue. (See Federal Reserve notes.) Notes of member banks (direct loans), collateral for same should be taken at market value 607 Preferential rates. (See Rate of discount.) Prices, high, not caused by policy of note issue 604, 608 Progressive rates of discount. (See Rate of discount.) Rate of discount: Bankers' acceptances, preferential rate for 600 Commercial paper 607 Effectiveness of 6 per cent rate 601 Horizontal and progressive 606 Increased to check excessive borrowings of member banks 602 Inter-reserve bank rediscounts 607 Loans secured by certificates of indebtedness 603, 603 Loans secured by Liberty loan and Victory notes— Preferential rate 601 Preferential rate not obligatory 607 Preferential rate would retard liquidation 607 Preferential rate not legal nor practical for original subscribers 607 Maximum rediscount line of member banks, progressive rate on excess borrowings, amendment to Federal Reserve Act 601 Rate of interest: Certificates of indebtedness, new issues 601 Paid by member banks on deposits 600 Rediscount rates. (See Rate of discount.) Reserves: Federal Reserve Banks, how strengthened 602, 604 Member banks— Acceptances as secondary ' 600 Decrease, 1913 to 1919 604 Foreign bank balances should be deductible from "Due to banks" in computing reserves 602 Revenue law. (See Taxation.) Soldiers' bonus deemed unwise 603 Stabilization of credits, etc. (See Credit control.) Taxation more equitably distributed 603 Transportation charges on shipments of Federal Reserve notes 608 Treasury operations. (See United States Treasury.) United States certificates of indebtedness: Should be more equitably distributed and not concentrated in banks 601 Rate of interest on future issues 601 Loans secured by, rate of discount 603 United States Liberty loan bonds and Victory notes, loans secured by: Rate of discount 603 Favored with differential rates 601 Preferential rate: Is there moral obligation to maintain? 607 Preferential rate would retard liquidation 607 Preferential rate for original subscribers not legal nor practical 607 United States Treasury, budget system should be adopted .' 603 United States Treasury operations, effect upon credit situation 603 Victory Liberty loan notes. (See United States.) War, cause for expansion of Federal Reserve notes 602 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis